West Bengal Electricity Regulatory Commission TO...West Bengal Electricity Regulatory Commission Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff

West Bengal Electricity Regulatory Commission

Corrigendum to the Tariff Order dated 04.03.2015 of the Commission including the

corrigendum dated 19.03.2015 in regard to the Tariff Application of the West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the years

2014-2015 to 2016-2017 in Case No TP-61/13-14

Attention of the Commission has been drawn to certain typographical errors / apparent

mistakes in the tariff order dated 04.03.2015 passed by the Commission including the

corrigendum dated 19.03.2015 in regard to the Tariff Application of WBSEDCL for the

years 2014-2015 to 2016-2017 in Case No: TP-61/13-14 .

The Commission is of the considered opinion that in the interest of all concerned such

typographical error / apparent mistake which do not have any effect on tariff

determination already made inadvertently in the said tariff order including the aforesaid

corrigendum, be corrected and necessary corrigendum be issued. The Commission

accordingly carries out such correction keeping in view the provisions of Section 94 of

the Electricity Act, 2003 and directs the Secretary to issue the following corrigendum :-

Correction of some typographical errors / apparent mistakes in the Tariff Order dated 04.03.2015 including the corrigendum dated 19.03.2015 in respect of WBSEDCL.

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Page No Nomenclature Present Description Corrected Description

Power Factor (PF) Range in %

Power Factor (PF) Range

PF > 0.99% PF > 0.99 PF > 0.98% & PF < 0.99% PF > 0.98 & PF < 0.99 PF > 0.97% & PF < 0.98% PF > 0.97 & PF < 0.98 PF > 0.96% & PF < 0.97% PF > 0.96 & PF < 0.97 PF > 0.95% & PF < 0. 96% PF > 0.95 & PF < 0. 96 PF > 0.94% & PF < 0.95% PF > 0.94 & PF < 0.95 PF > 0.93% & PF < 0.94% PF > 0.93 & PF < 0.94 PF > 0.92% & PF < 0.93% PF > 0.92 & PF < 0.93 PF > 0.86% & PF < 0.92% PF > 0.86 & PF < 0.92 PF > 0.85% & PF < 0. 86% PF > 0.85 & PF < 0. 86 PF > 0.84% & PF < 0. 85% PF > 0.84 & PF < 0. 85 PF > 0.83% & PF < 0.84% PF > 0.83 & PF < 0.84 PF > 0.82% & PF < 0. 83% PF > 0.82 & PF < 0. 83 PF > 0.81% & PF < 0.82% PF > 0.81 & PF < 0.82 PF > 0.80% & PF < 0. 81% PF > 0.80 & PF < 0. 81

160

Some of the signs in first column with the column heading “Power Factor (PF) Range in %” of the Table “Power Factor Rebate & Surcharge on Energy Charge in Percentage” in the corrigendum.

PF < 0.80% PF < 0.80


138 & 139

The first paragraph of paragraph no. 6.5.3 under chapter 6 of the tariff order.

Accordingly, for purchase of power by CESC Limited from WBSEDCL, the Commission admits the fixed charge of Rs. 4314.00 lakh per month from March 2015 which will be continued for balance part of 2014 – 2015. Prior to March, 2015, the purchase price of power by CESC Limited from WBSEDCL will be in single part and at an average rate of 571 paise / kWh which is being the average rate of current purchase price. In this context this may be clearly noted that during the period of April 2014 to February, 2015 the power purchase price will be 571 paise / unit on the basis of the actual energy drawal and no separate charge will be applicable. The mechanism of two part tariff will be introduced from March, 2015 as the same is the major structural change requiring modification of despatch protocol at both seller’s and purchaser’s end as well as there is requirement of modification in scheduling and related state energy accounting procedure at SLDC end. However, for 2015 – 2016 and 2016 – 2017 the purchase price of CESC Limited from WBSEDCL shall be two part where the capacity charge will be Rs. 2545.00 lakh per month and Rs. 2885.00 lakh per month respectively subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this order. To accommodate the need of the said direction in paragraph 8.14 in Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be 736.67 paise / kWh and 757.30 paise / kWh respectively. Besides the fixed charge per month under two part tariff mechanism, CESC has to pay energy charge on actual energy drawal every month as per the rate admitted and shown in Annexure 6E.

Accordingly, for purchase of power by CESC Limited from WBSEDCL, the Commission admits the fixed charge of Rs. 4314.00 lakh per month from March 2015 which will be continued for balance part of 2014 – 2015. Prior to March, 2015, the purchase price of power by CESC Limited from WBSEDCL will be in single part and at an average rate of 571 paise / kWh which is being the average rate of current purchase price. In this context this may be clearly noted that during the period of April 2014 to February, 2015 the power purchase price will be 571 paise / unit on the basis of the scheduled energy drawal and no separate charge will be applicable. The mechanism of two part tariff will be introduced from March, 2015 as the same is the major structural change requiring modification of despatch protocol at both seller’s and purchaser’s end as well as there is requirement of modification in scheduling and related state energy accounting procedure at SLDC end. However, for 2015 – 2016 and 2016 – 2017 the purchase price of CESC Limited from WBSEDCL shall be two part where the capacity charge will be Rs. 2545.00 lakh per month and Rs. 2885.00 lakh per month respectively subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this order. To accommodate the need of the said direction in paragraph 8.14 in Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be 736.67 paise / kWh and 757.30 paise / kWh respectively. Besides the fixed charge per month under two part tariff mechanism, CESC has to pay energy charge on scheduled energy drawal every month as per the rate admitted and shown in Annexure 6E.

183 From 6th line to 10th line in clause (a) under paragraph 8.4 of the tariff order.

Such calculation sheet shall also specifically mention the received fuel bill which has not been considered or partly considered in the said MVCA in pursuance to note (g) under sub- paragraph (e) of paragraph A of Schedule – 7B of the Tariff Regulations.

Such calculation sheet shall also specifically mention the received fuel bill and/or power purchase bill which has not been considered or partly considered in the said MVCA in pursuance to note (g) under sub- paragraph (e) of paragraph A of Schedule – 7B of the Tariff Regulations.

Sd/- (SUJIT DASGUPTA) MEMBER Dated: 25.05.2015


Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff Application of the West Bengal State Electricity Distribution Company

Limited (WBSEDCL), for the year 2014-2015 in Case No TP-61/13-14

Attention of the Commission has been drawn to certain typographical errors / apparent

mistakes in the tariff order dated 04.03.2015 passed by the Commission in regard to the

Tariff Application of WBSEDCL, for the year 2014-2015 in Case No: TP-61/13-14 .

The Commission is of the considered opinion that in the interest of all concerned such

typographical error / apparent mistake which do not have any effect on tariff

determination already made inadvertently in the said tariff order, be corrected and

necessary corrigendum be issued. The Commission accordingly carries out such

correction keeping in view the provisions of Section 94 of the Electricity Act, 2003 and

directs the Secretary to issue the following corrigendum :-

Correction of some typographical errors / apparent mistakes in the Tariff Order dated 04.03.2015 in respect of WBSEDCL.

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160

Some of the signs in first column with the column heading “Power Factor (PF) Range in %” of the Table “Power Factor Rebate & Surcharge on Energy Charge in Percentage” under sub-paragraph 7.2.11.1 are erroneously printed.



PF > 0.99 PF > 0.99%

PF > 0.98 & PF < 0.99 PF > 0.98% & PF < 0.99% PF > 0.97 & PF < 0.98 PF > 0.97% & PF < 0.98% PF > 0.96% & PF < 0.97% PF > 0.96% & PF < 0.97% PF > 0.95% & PF < 0. 96% PF > 0.95% & PF < 0. 96% PF > 0.94% & PF < 0.95% PF > 0.94% & PF < 0.95% PF > 0.93% & PF < 0.94% PF > 0.93% & PF < 0.94% PF > 0.92% & PF < 0.93% PF > 0.92% & PF < 0.93% PF > 0.86% & PF < 0.92% PF > 0.86% & PF < 0.92% PF > 0.85% & PF < 0. 86% PF > 0.85% & PF < 0. 86% PF > 0.84% & PF < 0. 85% PF > 0.84% & PF < 0. 85%

PF > 0.83% & PF < 0.84% PF > 0.83% & PF < 0.84% PF > 0.82% & PF < 0. 83% PF > 0.82% & PF < 0. 83% PF > 0.81% & PF < 0.82% PF > 0.81% & PF < 0.82% PF > 0.80% & PF < 0. 81% PF > 0.80% & PF < 0. 81% PF < 0.80% PF < 0.80%

153 Chapter 7, Header CHAPTER 7, TARIFF ORDER FOR 2011-12

CHAPTER 7, TARIFF ORDER FOR 2014-15

169

Annexure 7A2 , 1st

Lokdeep/Kutirjyoti [(Rate A (DM-K)]

row of the tariff structure of Low and Medium Voltage Consumers

Entire row is to be deleted. The rest rows will be renumbered accordingly.

169

Annexure 7A2, Sl. 5 “Irrigation Pumping for Agriculture (Unmetered), Column 7, against row for “Submersible in NB”

Rs. 288/KVA /Month (but not less than 1200.00 per month)

Rs. 288/KVA /Month (but not less than 1400.00 per month)

173

Annexure 7A2, Sl. 22 “Domestic consumers (50 KVA and above but upto 125 KVA), Column 8

Rate C-IDT Rate D-IDT

Sd/- (SUJIT DASGUPTA) MEMBER Dated: 19.03.2015

ORDER

OF THE

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

FOR THE YEAR 2014 – 2015

IN

CASE NO: TP – 61 / 13 - 14

IN RE THE TARIFF APPLICATION OF WEST BENGAL STATE

ELECTRICITY DISTRIBUTION COMPANY LIMITED FOR THE

YEARS 2014-2015, 2015-2016 and 2016-2017

UNDER SECTION 64(3)(a)

READ WITH SECTION 62(1) AND SECTION 62(3)

OF THE ELECTRICITY ACT, 2003

DATE: 04.03.2015

Tariff Order of WBSEDCL for the year 2014 – 2015

CHAPTER – 1 INTRODUCTION

West Bengal Electricity Regulatory Commission 2

1.1 The West Bengal Electricity Regulatory Commission (hereinafter referred to as

the “Commission”), a statutory body under the first proviso to section 82(1) of the

Electricity Act, 2003 (hereinafter referred to as the “Act”), has been authorized in

terms of the section 86 and section 62(1) of the Act to determine the tariff for a)

supply of electricity by a generating company to a distribution licensee, b)

transmission of electricity, c) wheeling of electricity and d) retail sale of electricity,

as the case may be, within the State of West Bengal.

1.2 The West Bengal State Electricity Distribution Company Limited (hereinafter

referred to as WBSEDCL), is deemed to be a licensee under the Electricity Act,

2003 in terms of fifth proviso to Section 14 of the Act wholly owned by the State

Government and is engaged in the business of distribution of electricity within the

area of supply of WBSEDCL in the State of West Bengal and the distribution tariff

of WBSEDCL shall be determined by the Commission.

1.3 West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2011 has come into effect from 29th April, 2011. The said Tariff

Regulations, 2011 was further amended by notifying the West Bengal Electricity

Regulatory Commission (Terms and Conditions of Tariff) (Amendment)

Regulations, 2012 in the extra ordinary edition of The Kolkata Gazette dated 27th

August, 2012 and West Bengal Electricity Regulatory Commission (Terms and

Conditions of Tariff) (Amendment) Regulations, 2013 in the extra ordinary edition

of The Kolkata Gazette dated 30th

1.4 In terms of West Bengal Electricity Regulatory Commission (Terms and

Conditions of Tariff) Regulations, 2011, as amended from time to time

(hereinafter referred to as the ‘Tariff Regulations’), the tariff applications for the

fourth control period consisting of the years 2014 – 2015, 2015 – 2016 and 2016

July, 2013.



3

– 2017 under the Multi Year Tariff (MYT) framework was required to be

submitted by WBSEDCL 120 days in advance of the effective date of the said

control period. The effective date of the fourth control period is 1st April, 2014.

WBSEDCL submitted an application on 21.11.2013 for extension of date for

submission of their MYT application for the fourth control period upto 31.12.2013

on the plea that they could submit their FPPCA application for the year 2012 –

2013 on 07.11.2013 and required some time to complete their work for the tariff

petition for the fourth control period. The Commission, after considering the

application of WBSEDCL and also the applications received from some other

distribution licensees, the transmission licensee and the generating company in

the State for extension of time for submission of MYT application, decided to fix

the last date of submission of MYT application for the fourth control period on

31.12.2013 and accordingly issued an order dated 02.12.2013. WBSEDCL,

however, submitted another application on 30.12.2013 for further extension of

time upto 15.01.2014 on the ground that WBSEDCL purchases power from the

Central sector utilities besides purchase of power from state utilities and the tariff

for the period 2014-2019 for central sector agencies was yet to be finalized by

Central Electricity Regulatory Commission (in short ‘CERC’). The Commission

vide order dated 31.12.2013 further extended the date of submission of MYT

application for the fourth control period upto 15.01.2014. WBSEDCL submitted

another application on 13.01.2014 for further extension of time upto 15.02.2014

on the ground that WBSEDCL could not finalize their power purchase cost as the

required information regarding proposed power purchase cost in respect of

different power stations of West Bengal Power Development Corporation Limited

(in short ‘WBPDCL’) was not received from WBPDCL and the tariff of central

sector agencies were yet to be finalized by CERC. This was not considered by

the Commission. WBSEDCL had failed to submit their MYT application within

15.01.2014. WBSEDCL further prayed to allow minimum another one month time

to submit their application vide their letter dated 22.01.2014 stating the reason



4

that average cost of supply and the tariff structure for different categories of

consumers would only be determined after finalization of power purchase cost as

the power purchase cost contributes 70% to 75% of Aggregate Revenue

Requirement (ARR). This was also not considered by the Commission. The

Commission vide letter dated 24.01.2014 directed WBSEDCL to submit their

MYT application for the fourth control period without further loss of time.

WBSEDCL submitted their MYT application for the fourth control period on

24.02.2014. The application is for determining the revenue requirements and

tariff of WBSEDCL for the fourth control period comprising three ensuing years

2014 – 2015, 2015 – 2016 and 2016 – 2017 under MYT framework. On scrutiny,

it had been found that some of the data, forms and documents were yet to be

submitted by WBSEDCL and the same were submitted by WBSEDCL on

03.03.2014 at the instance of the communication sent to WBSEDCL vide letter

dated 27.02.2014 of the Commission. WBSEDCL also made required submission

on 04.03.2014 in reply to Commission’s letter dated 04.03.2014.

1.5 The tariff application submitted on 24.02.2014 along with the information / data,

documents submitted on 03.03.2014 and 04.03.2014, were admitted by the

Commission in case No.TP-61/ 13-14, which were communicated to WBSEDCL

on 04.03.2014 with the direction to publish the gist of the tariff application as

approved by the Commission in the news papers and also in their website, as

specified in the Tariff Regulations. The gist was, accordingly, published

simultaneously on 5th March, 2014 in the news papers - (i) ‘Business Line’

(English), (ii) ‘The Telegraph’ (English), (iii) ‘Anandabazar Patrika’ (Bengali), (iv)

‘Khabar – 365 din’ (Bengali), (v) ‘Kalam’ (Bengali), (vi) ‘Sanmarg’ (Hindi) and (vii)

‘Akhbar-E-Mashriq’ (Urdu). The gist along with the tariff application was also

posted in the website of WBSEDCL. The publication invited the attention of all

interested parties, stake holders and the members of the public to the application

for determination of tariff of WBSEDCL for the fourth control period and



5

requested for submission of suggestions, objections and comments, if any, on

the tariff application to the Commission by 11th

1.6 Objections to / comments on the aforementioned tariff petition of WBSEDCL for

the fourth control period were received by the Commission from the following

objectors within the stipulated time i.e., 11

April, 2014 at the latest.

Opportunities were also offered to all to inspect the tariff application and to take

copies thereof. Some correspondences were also made with WBSEDCL which

were also published in the website of the Commission from time to time.

th

1. Ess Dee Aluminium Limited.

April, 2014 and the same have been

recorded in a summarized form in Chapter 3 of the instant order.

2. Ganatrantik Nagarik Samity, Howrah

3. Indus Tower Limited

4. Modern India Concast Limited

5. Eastern Railway

6. South Eastern Railway

7. Indian Tea Association

8. Rashmi Metaliks Limited.

9. Sri Gayatri Minerals Pvt. Ltd.

10. Rohit Ferro-Tech Ltd.

11. Sri Vasavi Industries Ltd.

12. CESC Limited.

1.7 The Commission determines the tariff in accordance with the Electricity Act, 2003

and the Tariff Regulations framed thereunder and for this purpose, the

Commission has estimated the expenditure for 2013 – 2014 to arrive at the

estimated expenditure / cost under different heads for the years 2014 – 2015 to

2016 – 2017.



6

1.8 The estimation made for 2013 – 2014 by the Commission shall not be construed

by WBSEDCL as admission of at least such estimated amount in APR for 2013 –

2014. On the other hand, if in APR any deduction is made then as a conclusion

from such decision one shall not expect that the impact of such deduction is to be

continued in forth control period as this will tantamount to imposing a penalty for

infinite nature or double penalty for the same inefficiency.


CHAPTER – 2 THE CASE OF WBSEDCL


2.1 The applicant WBSEDCL has submitted the application for determination of

Aggregate Revenue Requirement (ARR) and tariffs for the fourth control period

covering the years 2014-15, 2015-16 and 2016-17 under MYT framework in

accordance with the Tariff Regulations. The applicant has projected the ARR and

the tariffs for each ensuing year under the fourth control period and has prayed

for allowing the same. The applicant has also prayed for other dispensations

which are mentioned in subsequent paragraphs.

2.2 WBSEDCL has projected the ARR for the years 2014-15, 2015-16 and 2016-17

at Rs 16308.13 crore, Rs 19110.30 crore and Rs 22113.82 crore respectively

and the average cost of supply for 2014-15 at 657.98 Paise / kWh. It is also

stated that attempt is made by WBSEDCL to reduce the average cost of supply

by about 2 Paise/kWh for the year 2014-15 from the expected average cost of

supply of 659.93 Paise/kWh for the year 2013-14 (taking into consideration

increased cost of power purchase of 2013-14) even after considering release of

regulatory asset and special appropriation having consequential effect of 26.44

Paise/ kWh in the average cost of supply for 2014-15. The reasons for such

reduction in average cost of supply during 2014-15 are stated as follows:

i) Expected increase of internal efficiency of WBSEDCL including in the

field of procurement of power and supply to other licensees.

ii) Lower cost of generation for the power available from West Bengal Power

Development Corporation Ltd (WBPDCL).

It is further stated that such effort will continue for reduction of average cost of

supply for 2015-16 and 2016-17.



8

2.3 It is also submitted by the applicant that the Commission may consider rise in

price index and consumer base rise in power purchase cost and operating cost

resulting in increased cost of business.

2.4 It is stated by the applicant that while determining the ARR for the ensuing years

under the fourth control period, all infrastructure investment and power

procurement plan have been made assuming that all consumers under

WBSEDCL area will continue with power supply from WBSEDCL.

2.5 WBSEDCL has claimed to have completed the scheme of metering at the sub-

station upto 11 KV feeders. The scheme for metering for all irrigation and street

light consumers is under process and expected to be completed by 31.03.2015

as stated by them. It is also stated that the following measures are being taken

up to reduce the distribution loss (both technical and commercial):

(a) Regular monitoring of revenue, collection and distribution loss,

(b) Conduct of raids by Security and Loss Prevention Wing,

(c) Arranging consumer Parisheba Mela / Camp at different areas for speedy

release of new service connection,

(d) Implementation of Supervisory Control and Data Acquisition (SCADA) /

Distribution Management System (DMS) scheme for 3 nos. towns and

RAPDRP – Part B scheme for 5 nos. towns in WBSEDCL area,

(e) To facilitate energy audit mapping and documentation of entire power

network of WBSEDCL, Geographical Information System (GIS) stated to

have been taken up and is under progress,



9

(f) Spot billing facility for all categories of L & MV consumers under many

customer care centres is stated to be already in place and such billing

facility has been envisaged to be extended further,

(g) Implementation of Distribution Transformer (DTR) metering to locate loss

prone areas,

(h) Restructured Accelerated Power Development and Reform Programme

(in short ‘RAPDRP) (Part –A) for installation of IT infrastructure for

assessment and monitoring of loss on regular basis in 62 towns are under

progress. RAPDRP extension scheme for balance areas have also been

proposed by WBSEDCL,

(i) R-APDRP (Part – B) for 45 towns have also been taken up for reducing

AT&C loss of those towns.

2.6 WBSEDCL has submitted the projection of the energy balance that has been

arrived based on the estimated consumption, loss in distribution system of

WBSEDCL and loss in transmission system of WBSETCL at the normative level

as per Tariff Regulations. It is also submitted that the petitioner has to consider

the loss in central and state grid, as applicable.

2.7 The applicant has claimed that with fast growing / expanding distribution network,

additional consumers are being added with WBSEDCL system during the last

few years. It is stated that based on trend of increase in number of consumers in

last five years, consumers’ strength of WBSEDCL has been projected for the

years 2014-15, 2015-16 and 2016-17. The consumption of different categories of

consumers during the years 2014-15, 2015-16 and 2016-17 stated to have been

estimated as per CAGR of consumption during the last five years of the

respective category of consumers.



10

2.8 Total sale of energy to own consumers of WBSEDCL has been projected as

24785.10 MU in the year 2014 – 2015, 27232.10 MU in the year 2015 – 2016

and 29921.10 MU in the year 2016 – 2017. Distribution loss has been projected

on the normative basis at a level of 17.50% for all the three years 2014 – 2015

and 2015 – 2016 and 2016 – 2017.

2.9 The applicant has also projected sale of energy to other licensees viz. CESC

Limited, The Durgapur Projects Limited (DPL) and DPSC Limited (DPSCL)

during the ensuing years under the control period. The projection of sale of

energy to CESC Limited stated to have been made on the basis of projection

given by CESC Limited at a level of 1810 MU, 630 MU and 685 MU respectively

for the years 2014-15, 2015-16 and 2016-17. The projection of sale of power to

DPL as stated to have been estimated at 200 MU for each ensuing year of the

control period as per drawal trend of DPL. The sale of power to DPSCL stated to

have been estimated at 333.90 MU, 394.22 MU and 431.30 MU during the years

2014-15, 2015-16 and 2016-17 respectively as per the projections of DPSCL.

2.10 In terms of an agreement signed between the Govt. of West Bengal and Govt. of

Sikkim the applicant has claimed that 47 MU of energy being 20% of the sent out

generation from Rammam Hydel station Stage-II shall be supplied to Sikkim each

year of the control period.

2.11 Sale of incidental surplus energy to the persons other than consumers and

licensee during 2014 – 2015, 2015 – 2016 and 2016 – 2017 have been

estimated by the applicant to be at a level of 3647.00 MU, 3847.00 MU and

3322.00 MU respectively. In view of the present poor and unpredictable condition

of power market, the price for such power sale has been considered at pool rate

of power purchase of respective year. No projection has, however, been made by

WBSEDCL towards banking of power through swap arrangement for the ensuing



11

years under the control period. WBSEDCL may have to swap out power during

real time operation during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017.

2.12 WBSEDCL has two main hydel power stations situated at Rammam and

Jaldhaka. Based on existing PLF 236.50 MU generation for each year of 2014 –

2015, 2015 – 2016 and 2016 – 2017 has been projected for Rammam hydel

power station. It is stated that with the commissioning of new 4th

WBSEDCL has also a pumped storage project at Purulia. The Purulia Pumped

Storage Project (PPSP) in fact provides spinning reserve and utilized as and

when required to meet the system demand. Annual generation at a level of 1318

MU have been projected for the years 2014 – 2015, 2015 – 2016 and 2016 –

2017 according to the system requirement and considering optimum utilization of

the surplus power during the off peak hours.

unit of capacity 9

MW, the overall capacity of Jaldhaka Stage – I hydel power station become 36

MW. The generation from Jaldhaka Stage – I hydel power station have been

projected at 165.20 MU for all the three years under the control period.

2.13 WBSEDCL stated to have 10 (ten) small / micro hydel generating stations and

the generation from those generating stations are projected as generation from

renewable sources of energy. While projecting the generation from those

generating stations, it is stated that the generation from all such generating

stations except Jaldhaka – Stage-II have been estimated based on previous

trend while generation from Jaldhaka – Stage-II has been estimated as per trend

of other small / micro hydel power stations as that generating station has started

generation from September, 2013 after completion of R&M works. The

generation from the small / micro power stations has been projected at 160.63

MU, 169.63 MU and 172.63 MU for the years 2014 – 2015, 2015 – 2016 and

2016 – 2017 respectively.



12

2.14 WBSEDCL is maintaining a diesel generating plant at Rudranagar in Sagar

Island which was earlier supplying power to the consumers at Sagar Island. The

load at Sagar Island are now being catered through grid. No generation has been

projected from the diesel generating station for any year under the control period.

2.15 WBSEDCL is continuing to purchase power from different agencies namely West

Bengal Power Development Corporation Ltd. (WBPDCL), The DPL, DPSCL,

Damodar Valley Corporation (DVC), NTPC Ltd. (NTPC), NHPC Ltd (NHPC) and

PTC Ltd (PTC). It is also submitted that conventional power will also be

purchased directly from the new units of WBPDCL, NTPC, NHPC, DVC and

other generators and from electricity traders to meet the system demand of

WBSEDCL during the ensuing years of the fourth control period. WBSEDCL will

also purchase power from different renewable and co-generation sources of

energy during the ensuing years under the fourth control period.

2.16 The planning of power purchase has been claimed by WBSEDCL to have been

done keeping in view the following aspects.

(a) Estimated system demand for the ensuing years based on the projected

load growth.

(b) Maximum generation that may be available from the hydel power stations

of WBSEDCL.

(c) Commitment to meet the peak system demand.

(d) Requirement of pumping energy for optimum utilization of PPSP to meet

the system demand.

(e) Effort to keep spinning reserve as per regulation to meet emergency

situation while sudden break down of any unit occurs.



13

2.17 It is stated by WBSEDCL that the net generation to be available from the existing

generating stations of WBPDCL except Bandel TPS have been computed based

on the plant availability achieved by the respective generating stations during

2012 – 2013 and normative auxiliary consumption. As it is learnt by WBSEDCL

that the Bandel TPS is under shut down for R&M works from December, 2013 to

April, 2014 the generation from Unit V of Bandel TPS is stated to have been

estimated considering 70% availability during 2014 – 2015 and normative

availability during 2015 – 2016 and 2016 – 2017. The Units I to IV of Bandel TPS

is stated to be considered as stand-by. The availability of power from new 3rd

and 4th

2.18 WBSEDCL has claimed that besides purchasing power through grid system, they

will also purchase some quanta of power in radial mode from DVC at Asansol,

Burdwan and other areas, from DPL (at 33 KV & 11 KV) in and around Durgapur

area and from DPSC (at 11 KV) at Asansol area, Govt. of Sikkim (at 11 KV) at

units of Sagardighi TPS during 2015 – 2016 and 2016 – 2017 has been

considered at 400 MW and 1000 MW respectively and the projection of available

energy from those units have been estimated by WBSEDCL based on average

availability of the existing units I & II of the generating stations during 2010 –

2011 and normative auxiliary consumption. The units III & IV of the Sagardighi

TPS are yet to be commissioned and WBPDCL have not given any projection of

generation from those units III & IV during the years 2015 – 2016 and 2016 –

2017 in their tariff application for the fourth control period. WBSEDCL on query

has stated that generation from the new units III & IV at Sagardighi TPS is

projected as per communication received from WBPDCL. The capacity charges

for all the existing generating stations of WBPDCL for the years 2014 – 2015,

2015 – 2016 and 2016 – 2017 have been estimated by WBSEDCL reducing

proportionately the annual capacity charges as communicated by WBPDCL for

the respective generating station. The energy charges are considered as

communicated by WBPDCL for the respective generating stations.



14

Rangpoo area and WBREADA (at 11 KV) at Frezerganj area for catering its own

consumers during the years under the fourth control period.

2.19 WBSEDCL has projected the purchase of power from DPL at 132 kV, 33 kV and

11 kV during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 considering

the trend of drawal by them from DPL during 2012 – 2013 and the cost of such

power purchase has been estimated as per existing rate along with MVCA

claimed by DPL in the month of October, 2013. The power purchase from

DPSCL has been projected by WBSEDCL at a reduced level during 2014 –

2015, 2015 – 2016 and 2016 – 2017 as they have started to meet the demand of

some area at Asansol from their own source replacing the drawal from DPSCL at

radial mode. The power purchase cost has been projected at the existing rate of

purchase from DPSCL along with MVCA claimed by DPSCL in the month of

October, 2013.

2.20 The applicant has submitted that any revision of tariff in respect of WBPDCL,

DPL and DPSCL for the ensuing years by the Commission have an impact in

power purchase prices projected by WBSEDCL and that may be considered

while determining the power purchase cost of WBSEDCL for the ensuing years

under the fourth control period.

2.21 WBSEDCL has planned to purchase power also from NTPC Limited, NHPC

Limited, Damodar Valley Corporation (DVC) besides purchase of power from

WBPDCL, DPL, CESC Ltd and DPSCL. WBSEDCL shall also purchase power

from other generating stations on commissioning of those generating stations

during the years 2014-15, 2015-16 and 2016-17 to meet their load growth. The

price of power purchase is considered as per tariff applicable of the respective

generating companies, wherever available or from the price as projected by the

generating companies or based on available price with escalation as per CERC



15

Notification under Case-I bidding route. The applicant submitted to consider

selling price as may be allowed by the CERC in the tariff order of NTPC Ltd.,

NHPC Ltd, DVC and other generators for the respective years while passing tariff

orders in respect of WBSEDCL for the years 2014-15, 2015-16 and 2016-17 if

the tariff order in respect of those agencies are issued before the tariff order for

WBSEDCL are passed by the Commission. The applicant has also submitted to

consider the escalation on energy charges in line with CERC Notification for bid

evaluation in Case-I bidding to capture the impact of FCA in subsequent years

for purchase of power from them.

2.22 It is proposed that any hike in power purchase cost of WBSEDCL due to hike in

FCA, MVCA and MFCA of the generating stations be allowed to claim through

MVCA from the sale to own consumer and licensees in the State.

2.23 WBSEDCL has estimated own consumption at the offices and substations for the

years 2014-2015, 2015 – 2016 and 2016 – 2017 at 46 MU, 48 MU and 50 MU

respectively. WBSEDCL have projected 1016.95 MU to be procured either

through power swap-in on purchase of short term power generally in the months

of April and March next year during the year 2014 – 2015 in order to bridge the

gap between supply of power and system demand which usually occurs during

those months. In case of requirement of purchase of short term power or import

of power under swap arrangement during the years 2015 – 2016 and 2016 –

2017, WBSEDCL shall intimate the same through APR application for

incorporation in the tariff order for the respective year.

2.24 Considering the projected sent out generation from its own generating stations,

power purchase from different agencies and the projected sales, energy

consumption at own premises, WBSEDCL has projected the energy balance for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 also.



16

2.25 The applicant has submitted the projection of energy balance stated to have

been arrived based on the estimated consumption, loss in distribution system of

WBSEDCL and transmission system of WBSETCL at the normative level as per

Tariff Regulations and loss in CTU Grid.

2.26 The applicant has projected Rs.1293519.00 lakh as power purchase cost for the

year 2014 – 2015 while for the years 2015 – 2016 and 2016 – 2017 the power

purchase cost has been estimated as Rs.1421572.00 lakh and Rs.1589482.00

lakh respectively. This power purchase cost includes the cost of purchase of

estimated quantum of infirm power from the units under stabilization.

2.27 Transmission charges payable to WBSETCL for the energy required to be

transmitted by the petitioner through WBSETCL system has been projected as

Rs. 112835.00 lakh for the year 2014 – 2015, Rs. 139700.00 lakh and Rs.

145217.00 lakh for the years 2015 – 2016 and 2016 – 2017 respectively.

However, WBSEDCL has claimed Rs. 2172.00 lakh, Rs. 2388.00 lakh and Rs.

2619.00 lakh as SLDC charges during the years 2014 – 2015, 2015 – 2016 and

2016 – 2017 respectively. The system operation charges payable to POSOCO

have been estimated by WBSEDCL at Rs. 410.00 lakh for all the three years

under the fourth control period.

2.28 An amount of Rs. 120934.00 lakh has been estimated as employees cost for the

year 2014 - 2015. For the years 2015 – 2016 and 2016 – 2017 employee cost

has been projected as Rs. 136644.00 lakh and Rs. 154478.00 lakh respectively.

It is submitted that due to demographic and geographic considerations,

WBSEDCL is to maintain minimum level of employees to provide service to its

consumers. The number of employees at the end of 2012 – 2013 was 16837 as

against sanctioned post of 22125. In order to remove the gap in number of

employees arisen due to retirement of a good number of employees in the recent



17

past, WBSEDCL require to recruit new employees in phases during the years

2014 – 2015, 2015 – 2016 and 2016 – 2017.

2.29 The applicant has considered a D.A hike @ 12% each year on average basis for

the years under fourth control period, i.e., 2014 – 2015, 2015 – 2016 and 2016 –

2017. Moreover, increase in pay in respect of normal increment of employee cost

has been considered @ 2% on the basic and grade pay during the years 2014 –

2015, 2015 – 2016 and 2016 – 2017. Effect of 2% hike is also considered on

overtime and HRA. WBSEDCL has further claimed that terminal benefits are

reduced in the ensuing years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as the

service of newly recruited employees are not covered under the pension scheme

of WBSEDCL. No wage revision of employees has been considered by

WBSEDCL in the employee cost.

2.30 The applicant has projected Operation and Maintenance (O&M) expenses

including Repair & Maintenance (R&M) cost for the year 2014 – 2015 at

Rs.48462.00 lakh. The O&M expenses for the years 2015 – 2016 and 2016 –

2017 have been projected as Rs. 56907.00 lakh and Rs. 66495.00 lakh

respectively. WBSEDCL has claimed that distribution assets and consumer

strength of WBSEDCL is increasing rapidly due to RGGVY programme and other

work such as R-APDRP Part A and Part B, etc. at different parts of their

operational area. In order to deliver power with reasonable quality parameters

and to reduce instances of outages for the widely scattered large consumer

base, the expenditure of R & M works of WBSEDCL has been increased. The

O&M expense during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 have

been estimated considering the consumer growth of 8.44%, 8.05% and 7.80% for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively and general

inflation level of 10.09% as of October, 2013.



18

2.31 The applicant has not claimed any provision for bad and doubtful debts for the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017. Bad and doubtful debts will

be claimed on actual basis in their APR application for the respective year.

2.32 The applicant has stated that the capitalization of expenses for employees cost,

interest, administrative and other expenditure under the construction activities

are made for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 following the

existing policy of WBSEDCL.

2.33 WBSEDCL claimed an amount of Rs. 5604.00 lakh for 2014 – 2015, Rs. 6170.00

lakh for 2015 – 2016 and Rs. 6792.00 lakh for 2016 – 2017 respectively for

establishing and maintaining communication network set up for the complaint

management mechanism as per West Bengal Electricity Regulatory Commission

(Standard of Performance of Licensee Relating to Consumer Services)

Regulations, 2010 under the head Lease Rental.

2.34 WBSEDCL has claimed Rs. 565.00 lakh, Rs. 672.00 lakh and Rs. 797.00 lakh for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively as per trend

under the head Complaint Management Mechanism to meet the expenses for – i)

toll free telephone for registering grievances at ZCC, ii) SMS charge for

forwarding grievance to Mobile Van, iii) rental charge for IVRS system, iv)

separate telephone facility at each customer care centre and v) antitheft toll free

telephone charges.

2.35 WBSEDCL has claimed outsourcing cost giving details of the expenditure under

different subheads. The outsourcing cost as claimed by WBSEDCL for the

ensuing years under the control period are as follows:



19

Expenditure under distribution head of

outsourcing

Outsourcing cost for distribution (Rs. in lakh)

2014 – 2015 2015 – 2016 2016 – 2017 Manpower related 21958.00 27290.00 33930.00 Excluding manpower related 18525.00 21719.00 25438.00

Total 40483.00 49009.00 59368.00

2.36 Cost of depreciation of assets of WBSEDCL which will be in service during the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017 stated to have been computed

following depreciation schedule as per Annexure – A in the Tariff Regulations

and projected at Rs. 50301.00 lakh, Rs. 61370.00 lakh and Rs. 69042.00 lakh

respectively. The details of the calculation of depreciation have been given in the

Form – B to Annexure – 1 in Volume – IIB of their petition.

2.37 WBSEDCL has not claimed any amount under the head advance against

depreciation for any ensuing years under the fourth control period.

2.38 WBSEDCL has projected Rs. 49667.00 lakh towards interest on borrowed

capital, Rs. 13005.00 lakh towards interest on Pension Bonds and Rs. 728.00

lakh towards other finance charges for the year 2014 – 2015. Similarly, for the

years 2015 – 2016 and 2016 – 2017, they have projected Rs. 66849.00 lakh and

Rs. 76280.00 lakh as interest on borrowed capital, Rs. 13005.00 lakh and Rs.

13005.00 lakh towards interest on Pension Bond and Rs. 754.00 lakh and Rs.

786.00 lakh towards other finance charges, respectively. The applicant has

provided the computations showing actual amounts of interest chargeable in

revenue accounts in the Form-C to Annexure – 1 in Volume – IIB of their petition.

2.39 WBSEDCL has projected Rs. 7034.00 lakh, Rs. 7983.00 lakh and Rs. 8845.00

lakh for the ensuing years of 2014 – 2015, 2015 – 2016 and 2016 – 2017



20

respectively under the head interest on security deposit payable to the

consumers.

2.40 Regarding interest on working capital requirement, WBSEDCL has submitted

that, based on the directive of the Commission vide paragraph 8.11 of its tariff

order for 2008 – 2009, the average security deposit of permanent consumers

(excluding provision for security deposit) for the ensuing years 2014 – 2015,

2015 – 2016 and 2016 – 2017 have been considered for utilization as working

capital for the respective years. The gap, if any, between the normative working

capital requirement and the average security deposit in any year, is required to

be considered as working capital requirement for that year and the interest

thereon be claimed as per provisions of the Tariff Regulations. WBSEDCL,

however, has not claimed any amount as interest on working capital during the

years under the control period.

2.41 The applicant has not claimed any amount towards reserve for unforeseen

exigencies for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 under the

fourth control period.

2.42 WBSEDCL has estimated the provision for Minimum Alternative Tax (MAT) for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 considering MAT rate

20.9605% over the book profit. The amount projected under the head for the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017 are Rs. 824.00 lakh, Rs.

906.00 lakh and Rs. 997.00 lakh respectively.

2.43 WBSEDCL has projected the return on equity at Rs. 73999.00 lakh for all the

three years under the control period stated to be considered on pretax basis on

the permitted returns @ 16.5% on the average equity base as per the Tariff

Regulations. It is submitted that an equity addition for the year 2013 – 2014 has

been considered as Rs. 12880.00 lakh which was shown as capital liability in



21

their annual accounts for 2012 – 2013. It is further stated that a letter had already

been sent to the State Government for conversion of such capital liability into the

equity.

2.44 WBSEDCL has proposed to release a part of the regulatory asset created on the

additional expenditure of WBSEDCL due to revision of pay and allowances as

per ROPA, 2009, at Rs. 10000.00 lakh and Rs 61703.00 lakh during the years

2015 – 2016 and 2016 – 2017 respectively. WBSEDCL has proposed for release

of Rs. 10000.00 lakh and Rs. 34000.00 lakh during the years 2015 – 2016 and

2016 – 2017 respectively from the regulatory assets created in the APR order for

2009 – 2010 and Rs. 6000.00 lakh and Rs. 20977.00 lakh during the years 2015

– 2016 and 2016 – 2017 respectively from the regulatory assets created in the

APR order for 2010 – 2011. WBSEDCL have also claimed carrying cost during

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 on the regulatory assets

created against APR for 2009 – 2010 and 2010 – 2011 referring the provisions of

the Tariff Policy and the direction passed by the Hon’ble Appellate Tribunal for

Electricity in case no. OP No. 1 of 2011 dated 11th

2.45 WBSEDCL has also proposed to consider the impact of APR of WBSEDCL for

2012 – 2013 in the ARR of the ensuing years of the fourth control period.

November, 2011. WBSEDCL

has, however, proposed to release nil amount during the year 2014 – 2015 for

those regulatory assets.

2.46 WBSEDCL has also proposed to allow special appropriation on account of the

followings:

a) Instalments payment claimed by WBPDCL against the revision of tariff of

their new units in the ARR for the years under the third control period.

b) Instalments payment towards FCA of WBPDCL for the year 2010 – 2011.



22

2.47 Total expenditure of Rs.1866040.00 lakh has been computed by the applicant

and after excluding the revenue earned from other income, from bulk supply and

supply to Sikkim, expenses attributable to export and taking into account the

benefits passed on to the consumers, interest credit on depreciation and U.I

earning of previous year and taking into account the part release of regulatory

assets and carrying cost as proposed by them the annual revenue required from

sale of energy to its consumers has been estimated by the applicant at Rs.

1630813.00 lakh for 2014 - 2015. Similarly, for the years 2015 – 2016 and 2016

– 2017 total expenditure of Rs. 2091461.00 lakh and Rs. 2325522.00 lakh

respectively have been projected by the applicant and after aforesaid deductions

estimated for those years and considering release of regulatory assets and the

carrying cost claimed, the annual revenue requirement from sale of energy to its

own consumers have been projected at Rs. 1911000.00 lakh and Rs.

2211382.00 lakh respectively.

2.48 With projected revenue requirement of Rs. 1630813.00 lakh from sale of

24785.10 MU of energy to its own consumers, the average cost of supply per unit

has been computed by the applicant at 657.98 paise / kWh for the year 2014 –

2015. Similarly, the average cost of supply for the years 2015 – 2016 and 2016 –

2017 have been projected at Rs. 701.76 paise / kWh and 739.07 paise / kWh

respectively.

2.49 The applicant has proposed for two-part tariff for supply of power by WBSEDCL

to CESC Limited and DPSCL.

2.49.1 It is stated that in view of wide variation of drawal of power during peak period,

normal period and off-peak period of different seasons with respect to the

contract demand as per the Agreement with CESC Limited, monthly fixed charge

for supply of power to CESC Limited is proposed on the basis of the peak power



23

requisition of CESC Limited for the month of April each year for sharing of

capacity charge of WBSEDCL for that quantum of power. Based on the ratio of

such projected peak demand of CESC Limited and total demand arises out in

WBSEDCL system during April of each year, the fixed charge against CESC’s

drawl stated to have been computed and accordingly the monthly fixed charges

have been projected at Rs 4764.00 lakh, Rs 2819.00 lakh and Rs 3261.00 lakh

respectively for the years 2014-15, 2015-16 and 2016-17 corresponding to the

projected peak demand of CESC Limited of the concerned year. The applicant

has also stated that in case of drawal of more power by CESC Limited in any

month of an ensuing year than the projected demand of CESC Limited

considered in the computation of fixed charge of the concerned year, the fixed

charge for that month will be proportionately increased. The energy charge

during normal period, peak period and off-peak period for different seasons for all

the three ensuing years have been projected by the applicant considering the

rate for peak period and off-peak period at a level of 120% and 80% respectively

of the rate projected for normal period of the respective season.

2.49.2 The applicant has also projected monthly fixed charge for supply of power to

DPSC at Rs 768.50 lakh, Rs 835.00 lakh and Rs 836.75 lakh for the years 2014-

15, 2015-16 and 2016-17 respectively following the same procedure of

computation of fixed charge as in the case of CESC Limited but corresponding to

the cumulative contractual load of 100 MVA of DPSCL for all the ensuing years

for sharing the capacity charge payable by WBSEDCL for the above quantum of

power. The applicant has submitted that in case of drawal of more power by

DPSCL than the above stated contractual load of 100 MVA in any month, fixed

charge for that month will be proportionately increased. The applicant has

projected energy charge during normal period, peak period and off-peak period

for different seasons for all the three ensuing years considering the rate for peak



24

period and off-peak period at a level of 120% and 80% of the projected rate for

normal period of the respective season.

2.49.3 The applicant has, however, stated that the power drawal by DPL from

WBSEDCL is infirm in nature and as such no fixed charge for supply of power to

DPL by WBSEDCL has been proposed for the years 2014-15, 2015-16 and

2016-17. The applicant has projected the energy charges during normal period,

peak period and off-peak period for different seasons for all the three ensuing

years considering the rate for peak period and off-peak period at a level of 110%

and 90% of the rate proposed for normal period of the respective season.

2.50 Changes proposed by WBSEDCL in their tariff for 2014 – 2015, 2015 – 2016 and

2016 – 2017 are as follows.

(a) The demand charge, fixed charge and energy charge for different

categories of supply have been proposed to be revised.

(b) A new tariff category for Traction (Metro) has been proposed from the

year 2014 – 2015 as the Metro rail service which is scheduled to start

functioning from the year 2014 – 2015. Those metro services cover

integrated area of operation of CESC and WBSEDCL and WBSEDCL is

willing to give power supply to those metro services at a tariff that of

CESC Limited or at most at same level with CESC Limited for such

services.

(c) Voltage wise graded load factor rebate have been proposed to be

continued for EHV and HV industrial consumers and also for industrial

consumers under Rate B-ID (Industrial) category during the years 2014 –

2015, 2015 – 2016 and 2016 – 2017 at the existing rate given in tariff

order for 2013 – 2014. It is also proposed that the load factor rebate shall



25

be given as per the existing procedure till issuance of the tariff order for

2014 – 2015, but on issuance of the tariff order for 2014 – 2015 load

factor rebates shall only be applicable if the payment is made within the

due date.

(d) WBSEDCL has proposed to continue with the additional rebate to the

industrial consumer whose contract demand is 1.5 MVA or above at the

existing rate but at the revised rate prospectively after issuance of the

tariff order.

(e) Load factor surcharge is proposed to be continued for EHV and HV

industrial and commercial consumers and L&MV industrial consumers

under rate B-ID (industrial) and L&MV commercial consumers under rate

B-ID (commercial) as per existing methodology given in the tariff order for

2013 – 2014 if the load factor falls below 30%.

(f) WBSEDCL has also proposed to continue with the power factor (P.F.)

rebate and surcharge for the EHV and HV industrial consumers and

L&MV industrial consumers under rate B-ID (Industrial) and also for

consumers at the existing rates given in the tariff order for 2013 – 2014

under Rate T(a) and T(b). It is also proposed that the power factor rebate

shall be applicable at the existing procedure till issuance of the tariff order

for 2014 – 2015 but shall be applicable if the payment of energy bill is

made within the due date after the issuance of the tariff order for 2014 –

2015.

(g) To reduce drawal of load in peak period and to shift the load to off-peak

period for 33 kV and 132 kV industrial consumers having monthly

consumption above 1.0 MU, WBSEDCL has proposed to introduce a

rebate equivalent to the difference of the following two:



26

i) Demand charge calculated as per regulation 4.3.6 of the Tariff

Regulations; and

ii) Demand charge computed based on the maximum demand of

normal period or maximum demand of peak period or contract

demand in case of off-peak period or 85% of contract demand

whichever is higher, if those industries keep their maximum

demand during off-peak period within 130% of contract demand.

The above rebates shall be effective prospectively on issuance of tariff

order for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 subject to

the condition that payment is made within the due date.

Similarly for the above consumers keeping their maximum demand during

off-peak period within 130% of contract demand, a rebate equivalent to

the difference of the following two has also been proposed:

i) Additional demand charge calculated as per regulation 4.7.2 of

Tariff Regulations; and

ii) Computation methodology for additional demand charge for the

normal and peak period will be as per regulation 4.7.2 of Tariff

Regulations but there will be no additional demand charge

applicable for off-peak period.

The above rebates shall be effective prospectively on issuance of tariff

order for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 subject to

the condition that payment is made within the due date.

(h) Other terms and conditions are proposed to be remained unaltered.


CHAPTER - 3 OBJECTIONS AND SUGGESTIONS


3.1 Suggestions, objections and comments on the tariff application of WBSEDCL for

the fourth control period covering the years 2014-15, 2015-16 and 2016-17 have

been received within 11.04.2014 i.e., the due date from the persons are

mentioned in paragraph 1.6 of Chapter-1. The main points of the suggestions,

objections and comments etc. are summarized in the following paragraphs in this

chapter. The Commission’s views on the relevant objections, comments etc. are

also recorded in this Chapter.

3.2 ESS DEE Aluminium Limited made their submission and proposed for following

relief relating to their unit at Hoera:

• A temporary relief with a 50 per cent subsidy for a period of 5 years

related to our power bills.

• A rebate or a reduction in the rates on the power bills.

On this issue commission is of the opinion that the tariff setting principle cannot

be based on the problem of individual consumer. The differentiation of price can

be done on the basis of certain parameters under section 62(3) of the Act which

will be applicable for all who satisfies the conditions of the parameters as

designed in the tariff structure. Moreover subsidy is an issue that is to be

provided by any authority other than Commission or licensee.

3.3 Ganatantrik Nagarik Samity, Howrah (in short ‘GNS’) has made their submission

pertaining to determination of tariff of WBSEDCL for the fourth control period

against which Commission’s views are given as follows:

3.3.1 GNS proposed that the consumers should be given incentives for consuming

less power. According to GNS, the benchmark consumption of each domestic

and commercial consumer can be derived through a suitable and transparent



process based on average consumption of last three years. Thereafter, whoever

consumes less power in a month should be given an incentive in tariff on a

graded scale.

The Commission has noted the point and considering number of practical

problems of its implementation such as consumer specific continuous monitoring

on each billing cycle and the resultant load of it on information system of the

licensee, the Commission decides to the existing slab system as this also helps

in to achieve the same objective.

3.3.2 According to GNS all companies including WBSEDCL should extensively

undertake forestation programme and other environmental projects.. According

to GNS they have not found this aspect in the financial data furnished by the

WBSEDCL. Thus Commission should direct WBSEDCL to make adequate

provision for spending on environmental aspects.

The issues raised are governed by other different laws where such matter can be

tackled by the appropriate authority under those laws. Thus, commission is not in

a position to give any direction in this regard. However, in future if WBSEDCL is

found to be penalized for non-compliance of such laws by the appropriate

authority under any statue then such expenditure for non-compliance will not be

passed through the tariff.

3.3.3 WBSEDCL has proposed equalization of tariff for its rural and urban consumers.

On this issue GNS is of opinion that standards of performance in rural and urban

areas for this licensee should also be the same. In other words, they cannot

claim relaxed standards for serving rural consumers.

On this matter commission has gone through the application of WBSEDCL and

has not find any adequate reasoning in their tariff proposal for such equalization

of the rates except in Form 3.1 of Annexure-3 in Volume IV of the tariff



application for fourth control period where same rate has been simply displayed

for LV & MV ( Low Voltage & Medium Voltage) category of consumers. On the

other hand Commission has find merit on the issues raised by GNS. In view of

such fact for this year of 2014-15 the proposal of WBSEDCL for equalization of

tariff in rural and urban segment for the type of consumer in domestic,

commercial and industrial segment is not being considered. If WBSEDCL

intends to make the above proposal effective from future year then WBSEDCL

should submit the said proposal of equalization in rate with sufficient justification

along with the APR application for the year 2014-15 so that such reasoning can

be gone through stake-holders consultation for due consideration by this

Commission. However while submitting such proposal through APR application

for 2014-15 WBSEDCL shall clearly spelt out that they are agreeable to same

standard of performance for rural LV&MV and urban LV & MV consumers and

thus the norms of different deliverables in urban areas as applicable under West

Bengal Electricity Regulatory Commission Standard of Performance Regulation,

2010 as amended till date will also be applicable for rural areas and for the

purpose any regulatory order on this matter will be sufficient for WBSEDCL for

any regulatory purpose. In such case if WBSEDCL requires to increase their

logistic, resource and infrastructure cost such as mobile van etc. then that shall

also be included in the proposal along with detail reasoning and calculations. If

there is no requirement of additional infrastructure, resource or logistic support

then also that is to be shown with detail reasoning that how the existing

resources will serve the purpose. On getting such proposal if there is merit

Commission will consider the proposal for the ensuing years from 2016-17.

3.3.4 According to GNS alarming trend is noticed from the annual report of WBSEDCL

available in the website of the Commission regarding compensation paid to the

consumers by WBSEDCL. This points out towards low grade service offered to

WBSEDCL’s consumers. Also there is a serious gap between the cases paid off



and unpaid. It goes without saying that this compensation money should not be

loaded upon the consumers of WBSEDCL. The compensation amount payable

(full payable amount should be considered, as many cases are yet to be settled)

should be transparently deducted from WBSEDCL’s allowed revenue. The

disturbing issue of poor service is also required to be addressed through

appropriate directions. Also, the Commission may like to examine why there is

such big gap between compensation payable and paid. We are afraid that

WBSEDCL is not obeying the directions of the authorities.

Commission does not allow the compensation amount as a pass through

element in tariff. Regarding big gap between compensation payable and paid

Commission is taking appropriate steps.

3.3.5 It is crystal clear from the annexure to the petition of WBSEDCL that their

transmission and distribution losses are increasing over the years. This is nothing

but inefficiency. Such high loss will give rise to higher finance cost to be

eventually borne by the consumers of WBSEDCL. This is impermissible.

Commission has noticed the matter and is issuing appropriate direction in the

relevant chapter. The finance cost against the excess power purchase cost on

account of excess distribution loss over the normative value of 17.5% will be

dealt in accordance with the Tariff Regulations.

3.3.6 According to GNS the tariff proposed by WBSEDCL upon CESC Limited, is

extremely high resulting into huge tariff increase for consumers of CESC Limited.

On this issue GNS has following observations:

i) On the very onset of their view on the issue GNS mentioned that they

cannot accept that the consumers of CESC Limited would be sacrificed

for the consumers of WBSEDCL. Equity has to prevail in the State of



West Bengal. Thus CESC’s consumers should not be asked to subsidize

consumers of WBSEDCL.

ii) According to GNS they are also not sure of the basis of calculation, if any,

of Fixed Cost Working out to Rs. 57168 lakh, Rs. 33828 lakh and Rs.

39132 lakh for the three years 2014-15, 2015-16 and 2016-17, as

proposed by WBSEDCL. This aspect needs to be carefully looked into by

the Commission.

iii) GNS expresses concern with the proposal of WBSEDCL for steep rise of

tariff charged to CESC Limited to a level which is far more than the

average tariff proposed by WBSEDCL. According to GNS the present

tariff charged on CESC Limited by WBSEDCL is around 85% of

WBSEDCL’s consumer tariff. Against this WBSEDCL has proposed tariffs

for CESC Limited which are 11%-12% more than its consumer tariff which

according to GNS is an anomaly. Tariff charged by one licensee situated

in West Bengal to another licensee of the State which serves the capital

city, cannot be fixed at such disproportionate high levels, particularly

when the supply is made at a very high voltage.

iv) On this matter GNS has referred the consumer composition of CESC.

GNS also refers to their objection on CESC Limited’s tariff petition. GNS

refers to paragraph 3.4, page 11 of tariff petition of CESC where it is

mentioned that “For example, in its 27 lakh consumer base, CESC has

over 14 Lakh of consumer accounting for around 880 MU sales – a

meager average sale of around 50 Units a consumer per month”.

According to GNS interest of these 14 lakh consumers needs to be

looked into, particularly when CESC Limited is not getting power directly

from WBPDCL. WBPDCL power is cheaper. Peak power demand occurs

in the evening for any Licensee largely because of demands of small



consumers who needs such power only for this time. Purpose of supply is

a stipulated consideration for differentiation of tariff, envisaged in the Act

and should be given due weightage. Also tariff specified by the

Commission for WBSEDCL considers lower tariff and additional rebates

for power procurement at 132 KV. Considering relative tariffs of two

licensees and the fact that more than 50% of CESC’s consumers are

small, such tariff to Licensees should not exceed 50% to 60% of the

average cost of supply of WBSEDCL.

v) That urgent and careful consideration of the Commission is required for

the simple reason that inter-licensee exchange of power between two

West Bengal Licensees should assist each other in balancing their

demands and to cater to large number of small consumers embedded in

their system for whom they have supply obligations. In fact, we reiterate

our proposal that there is no point in CESC Limited buying power from

WBSEDCL as they can procure power directly from WBPDCL. CESC

Limited should be directed to make purchase from WBPDCL, a far more

cost effective source. This will reduce the burden on CESC Limited’s

consumers.

vi) GNS further pointed out that power purchased from WBPDCL is sold by

WBSEDCL to CESC Limited. Such rate should not exceed the average

rate at which power is sold by WBPDCL to WBSEDCL plus 20 Paise per

Kilowatt-hour towards transmission charges. Such fixation will go to

protect CESC Limited’s consumers’ interest.

vii) GNS is of the opinion that CESC Limited should be encouraged to

procure electricity from other sources at lesser cost. CESC Limited should

be directed to seek proper mix of power, including buying power from the

power exchange where the rates are much lower.



On the above issue commission has gone through detailed examination and has

come to following conclusions for action:

i) Commission vide letter no. WBERC/TP-61/13-14/1956 dated 18.03.2014

has asked WBSEDCL to submit detail calculation procedure for two part

tariff that is to be considered for sale of power by WBSEDCL to CESC.

Accordingly WBSEDCL has submitted their reply. Commission has found

that the price determination methodology along with associated terms and

conditions are reasonable for all stake holders. Thus, while determining

such selling price of power by WBSEDCL to CESC Limited the

Commission has followed the procedure as adopted by WBSEDCL. Here

commission noted that WBSEDCL has proposed the sale of power in

trading mode as they have kept a margin. On this issue commission has

certain observations which are discussed while determining the two part

tariff for sale of power by WBSEDCL to CESC. Thus the specific

proposal of GNS on price rate of purchase of power by CESC from

WBSEDC L is not acceptable to the Commission.

ii) As the proposed tariff for purchase of power by CESC from WBSEDCL

has followed a rational principle of two part tariff mechanism thus the

question of cross-subsidization of WBSEDCL consumers by CESC

consumer does not arises as such tariff recovers the actual cost.

However, such two part tariff mechanism can be made applicable

prospectively so that both the parties can adopt appropriate scheduling

philosophy and also SLDC can make it self-prepared for such scheduling

as detailed in subsequent paragraph 3.6.1.

iii) It is further observed that due to this proposed two part tariff the average

price for sale of power by WBSEDCL to CESC Limited in view of the

projected volume the selling price to CESC Limited is reasonable for the



years 2014-15, 2015-16 and 2016-17. The relative increase in last two

years occur due to skewed drawal pattern of CESC for those two years

whereas in first year it is almost same to the existing level.

iv) Commission is of the opinion that the claim of GNS that the purchase

price of power by CESC from WBSEDCL shall not be more than 50 to

60% of the average cost of supply to the retail consumers of WBSEDCL

has no merit as because GNS could not justify such price with supporting

calculation.

v) Regarding purchase of power by CESC from WBPDCL instead of

WBSEDCL, Commission has no jurisdiction to give such a specific order

unless concerned parties agree. However, on this issue details will be

discussed in the tariff order of CESC for 2014-15 and also some part in

the direction part of this order.

vi) Regarding other issues no discussion has been done here as that is not

the relevant issues pertaining to tariff fixation of WBSEDCL.

3.4 On the tariff application of WBSEDCL Eastern Railway and South Eastern

Railway have made their submission which are discussed in subsequent

paragraphs:

3.4.1 In order to get a tariff at a rate lesser than industrial tariff and at a reasonable

rate both the railways has referred three documents such as certain

recommendations of Public Accounts Committee (1990-91) of Lok Sabha , a

communication from Ministry of Power vide letter no. 37/34/90D (SEB) dated

01.05.1991 and also Article 287 of the Constitution.

Commission has noted all the above points along with subsequent development

of Electricity Act 2003 and different rules/regulations/policies under such Act and



specially tariff policy which are being framed on the background of all such

available reference and accordingly dealt the issue of traction tariff in the relevant

chapters.

3.4.2 Both railways say that –

i) while deciding the electricity tariff all the tariff design principles must be

kept in view in order to establish the true linkage of tariffs within the cost

of service; and

ii) reduction in T & D losses would generate savings and there is no

requirements of hike/ revision of traction tariff. Due to high T& D loss they

have to bear the cost.

Commission has noted the points and determined the tariff in accordance with

the Tariff Regulations and thus the burden of the excess distribution loss is being

restricted to a reasonable extent in accordance with the Tariff Regulations.

3.4.3 The proposed Demand charge of Rs. 320 / KVA / month for the year 2014-15,

2015-16 & 2016-17 for Railway Traction is higher as compared to those levied by

other neighboring power supply authorities like JSEB, DISCOM of OPTCL, where

the demand charge is Rs. 220/ KVA / month and Rs. 250 / KVA / month

respectively. Advocating introduction of demand charge on the basis of

simultaneous Maximum Demand of railways at different point both the railways

referred the letter No. 5-M (M&C)(16)/88 dated 21.10.88 addressed to Chairman

of Electricity Boards from Member (E & C) , Ministry of Energy , CEA , New

Delhi. Both the railways have also referred the order of Hon’ble Rajasthan

Electricity Regulatory commission vide S.L. No. 221 of their tariff order 2001

dated 24.3.2001. In the same line both railways request for combined load factor

of all the points for Railway traction to avail load factor rebate.



Commission after comparing the demand charge of other states also finds that

the proposal of WBSEDCL is not an irrational proposal and is in accordance with

Tariff Regulation. Commission feels that demand charge and load factor rebate

of retail tariff of the consumer is determined on the basis of number of factors

with different objectives as determined by the concerned Commission and thus is

not expected to be merely influenced by order of any other commission .

However, for licensee under jurisdiction of WBERC such demand charge as

determined cannot cross the ceiling as provided through formula in the Tariff

Regulation. Regarding the referred letter Commission holds the same view as it

has taken under paragraph 3.4.1 in relation to some other documents.

Accordingly, demand charge has been determined while fixing the tariff and thus

is not in favour of introducing demand charges or load factor rebate on the basis

of aggregation of all the point of supply.

3.4.4 WBSEDCL has enhanced MVCA (Monthly Variable Cost Adjustment) charges

from 11 paisa to 26 paisa/ kWh from the month of December, 2013 and again

from 26 paisa to 36 paisa/ kWh from February, 2014. Therefore, enhancement of

proposed energy charge does not arise as MVCA charges have already been

increased by 25 paisa/ kWh (within short interval i.e. from December, 2013 to

February, 2014).

MVCA and tariff determination of a year is completely separate issue and thus

Commission does not considered the above point.

3.4.5 That Hon’ble WBERC may keep provision of power factor rebate clause for

power factor above 86% in Railway traction tariff as against 92%.

Power factor rebate shall be applicable to all categories of consumer supply at

high voltage including railway traction from the year 2014-15 prospectively



instead of only high voltage industrial consumer as now exists. The power rebate

shall, however, be applicable for power factor above 92%.

3.4.6 According to both railways direct subsidy over 20% to needy Consumers should

be borne by State Government as direct subsidy as per Para 65 of Electricity act

& Para 8.3 of National Tariff Policy and not by Railways. In this context Hon’ble

APTEL give reference to APPEAL no. 79 06 2005 in Appellate Tribunal (Union of

India verses Andhra Pradesh State Commission dated 02.03.06).

On this issue Commission is of the opinion that Tariff Policy allows that the tariff

of any particular class of consumer shall be within ± 20 % of the average cost of

supply and accordingly tariff has been fixed for all classes of consumer including

that of the railways.

3.4.7 During feed extension in traction system, the voltage at the farthest end becomes

very low which is less than the minimum voltage required to run electric

locomotive as the distance of feeding becomes double the feeding zone of single

TSS. During feed extension, penalty is not taken from Railway in case of State

Electricity Board’s interest. If on Railway’s interest feed extension occurred

penalty for bursting of contract demand is accounted against Railway. Both

railways wants that such charges for over drawal above the contract demand at a

single point may not become applicable during feed extension.

The problem referred by both the railways is a technical problem which can be

effectively reduced through appropriate maintenance. The existing mode of

practice of sharing the impact of over drawal due to such feed extension is found

to be rational as the practice mode adopted will keep both the supplier and buyer

on their toe to have a good maintenance. Thus Commission does not want to

disturb the existing arrangement.



3.5 Modern India Con-Cast Limited have stated number of issues which are

discussed below:

3.5.1 WBSEDCL has proposed certain rebate under paragraph 9.1 (e) in Volume 1 of

the tariff application. Above industries have mentioned the above rebates and

referred the statement of WBSEDCL that the entire situation would be reviewed

after 1st

In this context Commission likes to make it clear that WBSEDCL has proposed

the review after observing the effect of first six months of FY 2015 as a result of

the above rebate. Commission further want to make it clear to all stakeholders

that once the tariff is determined for an ensuing year no review of tariff for that

ensuing year can be under taken in pursuance to section 62(4) of the Act except

the charges under FPPCA as permitted under the section. Thus review of any

tariff design can always be done during tariff order of any future ensuing year.

six months.

3.5.2 WBSEDCL has proposed some benefits of demand charge beyond 100% and

upto 130% if the load is shifted from evening peak to off-peak hours. On these

issues the above industries have mentioned that the following three points are

not clear.

i) What would be the fate if the drawal is beyond 130%?

ii) Whether the additional demand drawn during off-peak hour would be

included or excluded from the maximum demand recorded?

iii) Whether the additional energy consumed beyond 100% and upto 130%

would be considered in the computation of Load Factor or not. If

considered, would the same be calculated on the basis of variable

demand or fixed demand or variable demand capped to maximum

demand recorded during normal/ peak hour only as the consumer is



allowed to draw 130% of CD without any demand charge during off-peak

hours. Hence the same must be clarified for calculation of Load factor.

The above points have been noted by the Commission and will be duly

addressed in the relevant portion of the tariff orders. Drawal above 130% will be

as per Regulation.

3.5.3 According to Modern India Con-cast Limited such additional benefit as mentioned

in paragraph 3.5.1 and 3.5.2 by the proposed tariff as well as by shifting of load

from peak to off-peak and even after drawal of additional load upto 130% at the

off-peak hours unless the mode of computation of Load Factor is changed.

The commission is of the opinion that the mode of computation of Load factor

rebate has already been finalized in the Tariff Regulations. Thus it cannot be

deviated in this tariff order. Moreover by shifting the load from peak to off-

peak/normal hours the benefit of lower energy charge and rebate equivalent to

additional demand charge during off-peak period will be there.

3.5.4 The above industries specifically requested the Commission not to claim any

further arrear charges.

The Commission on this issue has decided to allow WBSEDCL to recover /

refund the adjustable amount, if any, in instalment as may be decided by the

Commission in subsequent chapter.

3.5.5 The industries also requested in their submission to maintain the ratio of Peak/

Normal & Off-peak/ Normal charge like previous years.

The point has been noted by the Commission.

3.5.6 In view of WBSEDCL’s proposal for new tariff for “Metro Railways” where

Energy/ Demand charges have been considered at par with demand charge of



CESC allowed for Metro Railways, the above industries has requested similar

consideration in the determination of tariff to Steel industries under WBSEDCL

and keeping the same at par with DVC. In this context above industries

appreciate the quality of power supply and service to consumers given by

WBSEDCL. But they have also mentioned the tariff at least for the Steel sector

needs to be competitive with DVC.

The WBSEDCL’s proposal that Metro Railways rate shall be equalized with that

of CESC has no merit because then on the logic of the same ground the tariff of

different categories of consumer of both CESC and WBSEDCL may require to be

equalized. In such case there is possibility of loading of different other consumers

with further cross-subsidy burden. However, while designing the tariff structure

for metro railway as it is a new category at high voltage and has no existing

influence on level of cross- subsidization and such supply is for public utility

service its rates are being kept below the average cost of supply subject to lower

ceiling as specified in paragraph (vii) of regulation 2.2.1 of the Tariff Regulation.

3.5.7 To allow the rebate on ECS payment to the consumers paying the electricity bills

through Letter of Credit within due date.

Letter of Credit is provided as a payment security mechanism in lieu of cash

security deposit. It is not meant for normal bill payment mechanism. Thus

commission does not agree to the proposal.

3.6 CESC Ltd. has made submission which are as follows:

3.6.1 WBSEDCL has proposed two part tariff for sale of electricity to CESC in its tariff

petition for the years 2014-15, 2015-16 and 2016-17. On this aspect CESC has

following submission:



a) CESC does not like to offer any comment on two part tariff structure per

se. According to CESC as per the Electricity Act, 2003, it is the

prerogative of the Hon’ble Commission to decide on the structure issues.

b) The petition does not contain necessary calculations of fixed cost

proposed for recovery. On such issue CESC has requested Commission

to examine/ review the basis of computation of fixed charge in the

proposed two part tariff structure for each of the ensuing year of the 4th

c) According to CESC the two part tariff structure containing highly loaded

fixed charge component is generally aimed at controlling the drawal

pattern of large consumers having necessary control on their electricity

consumption pattern. CESC pointed out that licensees having universal

service obligations virtually have no control on its overall drawal pattern,

which is merely the summation of drawal patterns of all its consumers,

majority of whom have consumption of less than 50 units per month in

case of CESC. They also pointed out that any steep rise following a two

part structure will go particularly to the detriment of these smaller

consumers of CESC.

control period.

d) The proposed two part tariff may not be allowed to contain any margin

because that will go against the interest of CESC consumers.

e) The peak demand of WBSEDCL including CESC’s drawal is not always

met from the capacity under long term PPA of WBSEDCL exclusively, as,

in order to manage the overall demand, WBSEDCL undertakes various

short term transactions like short term procurement of power, banking etc.

Thus the impact of such short term procurement or banked energy needs



to be considered appropriately in arriving at the tariff, including fixed

charges, if any, for WBSEDCL for bulk sale to CESC.

f) CESC’s maximum drawal pattern across various months is not

necessarily coincident with maximum demand pattern of WBSEDCL and

thus due cognizance may kindly be taken of the time of CESC’s

maximum drawal, whether it is coincident with State’s maximum demand

and how it has impacted the maximum demand and outgo of WBSEDCL.

g) CESC is presently drawing power from WBSEDCL from a number of

import points. Load is distributed over these points to operationally

provide the most stable option for Kolkata power system. Since drawal

over these points is merely distribution of WBSEDCL purchase across

various sub-stations, thus fixed charge may be computed combining

drawal of CESC across various points as a whole and not point-wise, in

case the two-part structure is being introduced.

h) The two part tariff regime would require an entirely different dispatch

philosophy for inter licensee interchange of power compared to the

prevailing dispatch mechanism followed under single part tariff. Thus, two

part tariff may be made prospective only to afford an opportunity for

CESC to readjust the dispatch protocol in its consumers’ interest. In this

context Commission may give due cognizance of the fact that in case of

adaption of two part tariff capacity will have to be reserved for use by

CESC, regardless of dispatch and such capacity will be dispatched by

CESC whenever economic decisions warrant so either for its own

consumers or for export.

i) Any support rendered during exigency for a short period may not be

considered for steep rise in fixed charge payable during that month.



On the above submission of CESC the Commission has following observations

alongwith Commission’s decision:

a. Commission finds that none of the objectors has any objection on the

principle of the two part tariff for purchase of power by CESC from

WBSEDCL but at the same time they have brought number of issues

related to methodology of fixed charge determination and overall impact

of determined tariff over the retail price of CESC. Thus commission in

principally decides to introduce two part tariff prospectively from March,

2015 as under two part regime the scheduling principle is different than

that of single part tariff and it requires a preparatory time for both CESC

and SLDC for their scheduling structure and accounting purpose.

WBSEDCL has merely proposed the fixed charge without mentioning the

computational methodology in detail. Thus, the Commission has taken

steps as already detailed in paragraph 3.3.6 of this order. As per the

relevant power purchase agreement the energy charge computation is

based on combine drawal of CESC across various points as a whole and

not point-wise. Regarding fixed/demand charge computation the PPA is

silent. Thus Commission decides that in line with the practice of sell of

power from central sector power utility to different licensees in the

country, the fixed charge component under two part tariff structure for sell

of power by WBSEDCL to CESC shall also be based on combined drawal

at different drawal points because in the fixed charge component the

proportionate capacity charge of different generating sources from where

WBSEDCL is procuring power has been considered along with the

proportionate CTU & STU charges. Commission thus issued appropriate

direction in this order where two part tariff is determined.

b. On the issue of fixed charge calculation methodology Commission has

already provided its view in paragraph 3.3.6.



c. The argument of disadvantage of two part tariff on the ground that CESC

has no control over the load pattern of the consumer as explained above

does not stand good as because if such logic is accepted then in case of

sale of power from generator to licensee also has to be considered in

same line resulting into less recovery of capacity charges of the

generating station.

d. Regarding margin issue Commission finds that volume of energy sell by

WBSEDCL to CESC is large amount and could not be available from its

own generating station and thus has to be covered through trading

activity only. Thus a trading margin is entitled to WBSEDCL. Thus the

purchase price of CESC for power from WBSEDCL may have a

component of margin which will be decided by the Commission in

appropriate chapter.

e. From the submitted documents of WBSEDCL as mentioned in paragraph

3.3.6, the Commission has noted that the maximum drawal considered for

fixed charge computation is less than the projected maximum drawal in

an ensuing year which means that the short term purchase of power by

WBSEDCL as well as non-coincidence of maximum demand pattern of

WBSEDCL and CESC Limited’s maximum demand have been

considered. However, to protect the interest of the consumers of

WBSEDCL any short term procurement over the agreed maximum drawal

have been covered through proportionate fixed charge on daily basis

followed by proposed claims in the proposed PPA as mentioned in the

direction chapter.

f. Regarding a short time support of power to CESC during exigency from

WBSEDCL an appropriate measures has been provided under the

direction chapter.



3.6.2 CESC respectfully submits before the Hon’ble Commission that the interest of

consumers of both the licensees may be considered while regulating tariff in case

of interchange of power between two licensees. CESC referred the order dated 1

According to CESC the present tariff of WBSEDCL charged to CESC works out

to 573 paise per unit against CESC’s average selling rate of 652 paise per unit.

According to CESC the current rate of 573 paise per unit is significantly higher

than the prevailing price discovered at market through Power Exchanges etc.

CESC has also furnished a calculation in Annex A of their submission to show

that the proposed tariff under the new structure for CESC is about 801 paise per

unit in 2015-16 and 851 paise per unit in 2016-17 i.e., an increase of 228 paise

per unit (40%) and 277 paise per unit (48%) respectively.

CESC pointed out that the proposed tariff of WBSEDCL for bulk sale to CESC at

EHV level is even higher than the proposed average consumer retail tariff of

WBSEDCL in 2015-16 and 2016-17.

According to CESC the proposed tariff structure of WBSEDCL will force to steep

increase in CESC tariff during 2015-16 and 2016- 17.

In view of above submissions CESC request the following:

December, 2012, in respect of tariff of WBSEDCL for the years 2011-12 and

2012-13, where the Hon’ble Commission has laid down that in case of tariff for

inter-licensee transactions - “...the purchase price of power by one licensee from

another licensee is being regulated keeping in view of the interest of the

consumers of both the Licensees.”

a) Any increase in tariff chargeable by WBSEDCL to CESC, should be made

gradual in nature in order to avoid any tariff shock for the end consumers.



b) The commission may decide the matter after considering the interest of

the consumers in the State as a whole.

In this matter Commission decided the two-part tariff structure in a manner so

that the interest of the consumer of both the licensees can be served to a

reasonable extent under the different constrain. The Commission finds that in

2015-16 and 2016-17 though the price per unit is relatively high due to skewed

drawal pattern by CESC, but since the proposed volume of drawal is quite less

than the previous years its impact in average cost of supply is less and found to

be 767.31 paisa / unit and 816.41 paisa / unit respectively. Considering all

aspects including the rationality of the design the above price for sale of power to

CESC by WBSEDCL in 2015-16 and 2016-17 is being considered.

3.6.3 CESC refers Regulations framed by the Hon’ble Commission where fixed

charges can be introduced only at a rate not higher than that of existing highest

rate from consumers. According to CESC the fixed charge proposal works out to

Rs. 768 per KVA per month in 2014-15, Rs. 854 per KVA per month in 2015-16

and Rs. 847 per KVA per month in 2016-17, which is substantially higher than

the existing highest fixed charge of Rs. 56 per KVA per month for WBSEDCL

consumers. CESC also mention that the proposed fixed charge is also

significantly higher even after considering the existing highest demand charge for

the WBSEDCL consumers, which is Rs. 317 per KVA per month.

CESC’s above contention is applicable for sell of power by a distribution licensee

to it’s consumer in his area of supply. As in this instant case the sale of power to

CESC by WBSEDCL is a transaction between two distribution licensees of

different area of supply thus the above contention is not as per the regulation.

3.6.4 CESC mentioned that Commission may consider commensurate reduction in

support required by CESC from WBSEDCL in the year 2014-15 onwards, after



commissioning of the power station of Haldia Energy Limited, while regulating

tariff for WBSEDCL for sale to CESC.

As the tariff is two part and CESC has not objected the drawal energy quantum

of CESC as proposed by WBSEDC, the Commission has nothing to comment.

3.7 Indian Tea Association (ITA)has stated the followings:

3.7.1 The WBSEDCL has not been complying with the deadlines in filing its petitions

as defined in the Regulations. As per the regulations, WBSEDCL is required to

file the Tariff Petition by 30th Nov of the preceding year. The Hon’ble Commission

had extended the time for submission twice, first upto 31st December 2013 and

second until 15th of January 2014, in order to facilitate the submission.

WBSEDCL had failed to submit the petition before the deadlines and has

submitted its petition on 12th

The submission of ITA has merits and accordingly direction is issued in the

chapter of the direction.

February, 2014 after consequent directives towards

submission, which might result in delays in issuance of tariff order. It would

create accumulated gap and corresponding interest cost. This would lead to

burdening of charges on current consumers. Since the delay is purely attributable

to the WBSEDCL, the Hon’ble Commission is requested not to allow any gap and

recovery of interest charges on the same.

3.7.2 There are number of anomalies in the data provided by WBSEDCL with regard to

sales in Lifeline category. While the growth in consumers in this category during

FY 2014-15 to FY 2016-17 has been projected to be 9.83%, the sales to this

category has been projected to increase by 36.63%. Moreover, as per the tariff

schedule, average quarterly consumption for this category of consumers cannot

go beyond 75 units which is being violated in the year of FY 2016-17 with

average quarterly consumption being 76.41 units. Thus it requested the



Commission to consider reasonable assumptions for the purpose of sales

projection for all consumer categories and reduced the power purchase cost for

such type of over-estimation.

In the above context Commission feels that the growth in sales is likely to

surpass the growth in consumer strength of life-line category as due to access of

electricity by those types of consumer the electricity dependent life – style and

economic activity is likely to gradually increase. Thus there is no-anomaly on this

account. However, for 2016-17 the anomaly will be rectified by considering per

consumer consumption in the tariff order for 2016-17. In this regard a direction is

being given in the direction chapter.

3.7.3 On excess distribution loss issues ITA has following observation:

a) The capital expenditure estimation is very huge for FY 2013-14 and FY

2015-16 compared to the past actual trend of capital expenditure. After

capital expenditure of Rs. 4969 Crore incurred by the WBSEDCL on the

distribution network during FY 10- FY 13, no improvement on the efficiency

parameters i.e. distribution losses is observed. This raises serious concern

on the appropriateness of the capital expenditure incurred in the past

years. The Hon’ble Commission is requested to study the capital schemes

proposed by WBSEDCL in detail and direct them to submit cost benefit

analysis against each scheme both from technical and financial aspects

before approval.

b) Further, Hon’ble Commission is requested to consider the approved loss

level 17.50 for FY 2013-14 as the base for projection and therefore

approve an annual reduction of 1% each year (in line with Abraham

Committee recommendations of 1% reduction in loss for utilities having

losses below 20%).



c) Commission shall not allow the inefficiencies of WBSEDCL to be passed

on to the consumers in the State.

d) As the above proposed measures may lead to a revision in the total

energy requirement for the control period thus Commission shall disallow

any power purchase cost due to non-achievement of target distribution

losses in this order and during truing up.

On this issue of consideration of normative distributions loss and disallowance of

power purchase cost Commission will follow the Tariff Regulation which has

specific provisions on this issue that has been framed after due public

consultation. Accordingly power purchase quantum will also be decided both in

tariff order or subsequent APR / FPPCA order for the concerned year. On the

issue of increasing distribution loss inspite of huge capital expenditure

Commission is issuing a certain directive in direction chapter.

3.7.4 It is observed that the tariff proposed by WBPDCL is higher as compared with the

trend of tariff for state generating stations approved by the Hon’ble Commission

in the previous Control Period. Further, CERC has come out with revised tariff

regulations for determination of Tariff which indicates that different parameters

have become more stringent. In view of such revised regulations, WBSEDCL’s

proposed increase in fixed and variable charges from the CGS is not justified and

therefore should be considered as per the reasonable estimates.

Commission has noted the point and will apply due prudence while determining

such power purchase cost.

3.7.5 In the MYT Petition, WBSEDCL has projected huge cost towards outsourcing of

manpower related to distribution as well as outsourcing of other works (excluding

manpower) for distribution. It is observed that on one end the distribution

licensee is proposing to fill-up the vacant positions during the control period and



has accordingly proposed high employee cost in each year and on the other end

is proposing very high level of outsourcing of manpower cost. Both the

statements are contradictory and reflects the WBSEDCL’s intention of loading

higher employee cost in the tariff. It is requested to the Hon’ble Commission to

direct the utility to conduct a proper HR study to evaluate the actual requirement

of employees and accordingly allow any additional recruitment. The petitioner

has further considered a DA (Dearness Allowance) increase of 12% on average

for the control period which is much higher than the increase in average CPI

index in past five years.

Commission finds no contradiction in the claim of WBSEDCL on account of filling

their vacant position and outsourcing of persons. The area of outsourcing is

clearly defined. Moreover it is the licensees’ business decision that where it

requires employee under regular establishment and where it requires outsourced

services. Commission is not meant for providing management decisions.

However, the latest five DA increase in central government 1.7.2012 to 1.7.2014

is 7%, 8%, 10% ,10%& 7%. Thus, as a rational approach commission considered

the rate of DA increase on every six months by 8.4% which is average of the last

five values. Thus the claim of WBSEDCL of annual increase on DA expenditure

by 12 % is quite reasonable claim.

3.7.6 According to ITA the actual O&M expenses for last 2 years show that the

increase has been a mere 6% during FY 13 and an increase of 13% is estimated

for FY14 which is lower as compared to the increase considered for projection

during the Control Period. Further, it is submitted that the historical trend in

movement of WPI (Wholesale Price index) is considered as a reasonable

measure for projection of O&M expenses by other State Regulatory

Commissions. Accordingly ITA has proposed five year increase in WPI index of

7.29%.



Commission noted the proposal of ITA. Commission also observed that that

Central Electricity Regulatory Commission based on a hybrid index of WPI &

CPI (Consumer Price Index) has considered an annual inflation trend 8.35 %

while fixing the norms of O&M expenses for central sector utilities. This inflation

trend of 8.35 % is computed based on five year average of WPI and CPI indices

for FY 2008-09 to FY 2012-13 considering 60% and 40% weightage on WPI and

CPI respectively. However, while fixing norms of O&M cost (which include

employee cost under regular establishment also) the annual escalation rate on

O&M expenses during the period 2014-2019 has been considered at a lower

value than the inflationary rate of 8.35% as given below along with the reasoning.

i) 6.29 % and 6.81% for coal/lignite and gas power station respectively

which is higher than the actual growth rate of 6.0% for O&M expenses

during 2008-09 to 2012-13.

ii) 3.12% for A/C transmission system. This 3.12% is the 110% of the actual

Compounded Annual Growth Rate (CAGR) (3.02%) of O&M expenses for

A/C transmission system during the period 2008-09 to 2012-13 computed

on the basis of 70% weightage on actual O&M cost of per bay of sub-

station and 30% weightage on actual O&M cost of per CKM transmission

line.

Moreover, it may be noted that due to rapid expansion in the network arising out

of rural electrification and which is now gradually stabilizing to a normal growth

path by this fourth control period, the growth rate of the past trend of the network

or consumer strength or its actual expenditure on the O&M head cannot be relied

on as those will give higher projection. Thus no further discount is considered on

the inflationary trend on the above ground. Considering all the above factors in

similar line with CERC Commission also decided to find out a reasonable annual



escalation rate for O&M expenses on different distribution head as detailed in

chapter – 5.

3.7.7 WBSEDCL has not provided the complete details for the capital expenditure it

proposes to incur during the Control Period. No scheme wise information for

distribution cap-ex is provided as directed by the Commission in the directives of

previous Tariff Order.

Commission finds that WBSEDCL submitted the detail of capital expenditure in

Forms 1.19(a) and 1.19(b) to Annexure – I of their tariff application and also in

the perspective plan as per Tariff Regulation. The proposed investment has

followed the procedure as specified in the Regulation.

3.7.8 Grossing up of RoE by applicable tax rate is not under the purview of WBERC

Tariff regulations, 2011. The Petitioner is required to claim the tax as per last

year applicable tax liability. ITA proposes that no grossing up be allowed to

WBSEDCL and actual tax paid/ applicable on WBSEDCL each year can be

considered at the time of true-up.

As tax is to be paid within the concern year thus to ensure cash flow Commission

allows payable tax at the rate of Minimum Alternative Tax (MAT) at tariff order

stage on the basis of return on equity subject to truing up on the basis of actual

tax paid during APR stage.

3.7.9 It is also important to point out that WBSEDCL has considered equity addition of

Rs. 128800 Lakh which was shown as capital liability in the Annual accounts of

FY 2012-13. WBSEDCL has submitted that a letter seeking approval conversion

of such liability into equity has been sent to state government for consideration.

The licensee has not explained the usage of the capital liability being converted

to equity. Even if the Government liability is converted to equity, the regulations

do not permit equity employed higher than 30% of the project cost eligible for



RoE. ITA prays to the Hon’ble Commission that this amount may not be

considered as part of the equity as the conversion is yet to be approved from the

State Government. Further, ITA prays to the Hon’ble Commission to link rate of

RoE to performance of the petitioner as has been done in states like Assam,

Haryana, etc. where Commission allowed only 7% RoE considering poor

performance of utilities. Accordingly, ITA requests the Hon’ble Commission to

approve 10% RoE on a provisional basis to the WBSEDCL and could consider a

higher return in case WBSEDCL is able to meet the desired loss level for each

year of the Control period.

Commission notes the view of ITA and is not considering equity addition unless

the State Government passed such order. Moreover it may be noted that the

deduction in ROE for inefficiency as proposed is always covered through

disallowance of additional power purchase cost due to excess distribution loss

and no pass over of the expenditure to the consumer on account of

compensation payable to the consumer on account of failure in standard of

performance.

3.7.10 ITA prays to WBERC to consider the interest on additional quantum of security

deposit and reduce the same from ARR for the respective years in which the

security deposit exceeds the normative working capital. Alternatively these

surplus security deposits could be utilized for meeting the requirement for carry

forward of regulatory assets for which the utility is claiming additional carrying

cost.

3.7.11 WBSEDCL has claimed past under-recovery on account of APR for 2009-10 and

2010-11 along with carrying cost. The delay in recovery is purely attributable to

the WBSEDCL and results in additional burden on consumers due to carrying

cost. In the current petition, an amount of Rs. 269 Crore has been loaded over

three year period for recovery of the past under recoveries. Moreover, It is



prayed that no carrying cost should be allowed to WBSEDCL where the delay in

filing APR and recovery can be directly attributable to these inefficiencies.

The Commission has noted the point and will dealt in appropriate manner in

accordance with the Tariff Regulation while computing the carrying Cost.

3.7.12 It seems that WBSEDCL has been negligent in the process of filing of the petition

as can be seen from the errors made in the submissions. It is observed that in

the Outline of the tariff proposal, the petitioner has submitted the “carrying cost of

APR of WBSEDCL 2010-12” for FY 2015-16 as Rs. 20.35 Crore whereas, it has

projected the same cost as Rs 79.12 Lakh in section 6.0 (b).

The point has been noted by the Commission.

3.7.13 The present categorization of the tea estates and the applicable tariff do not

recognize the seasonal nature of the industry and impose uniform application of

demand charges throughout the year, including the lean period. Such application

of general tariff to a seasonal industry is not only burdening the estates but is

also unjustified. ITA also refereed the Tariff Order for WBSEDCL for the year

2007-08 where Commission clarifies that in accordance with the regulations

specified by the Commission the consumers have enough scope and right to

revise their contract demand at appropriate time which will reduce the adverse

impact of demand charge on low energy consumption during lean season. The

ITA hereby submits that the guidance given by the Hon’ble Commission is posed

with substantial implementation issues and practical difficulties. It is not

practicable for tea estates to routinely apply and pursue such applications for

frequent reduction and enhancement of contract demand by WBSEDCL. In view

of the above cited reasons, ITA prays to the Hon’ble Commission to specify a

separate tariff category for the tea establishments in the state duly recognizing

the seasonal nature and other peculiarities of the industry.



For covering lean season the regulation provide scope of unlimited number of

contract demand reduction and one time contract demand increase in a year. It is

also not implementable that on regular basis contract demand can be changed.

The tariff policy has also emphasized for two part tariff which is a rational tariff

designing method. Each type of industry specific tariff designing is also not an

practical solution. Thus Commission does not agree with the ITA’s proposal.

3.7.14 The irrigation load within the tea establishments may be given with separate

connections for segregation of irrigation load and making the irrigation tariff

applicable in respect of the same on issuance of appropriate orders/ directives by

the Hon’ble Commission. The Hon’ble Commission has in fact applied this

principle towards determination of tariff for the labour lines in the tea gardens

where the end use determines the applicable tariff rate. While the Hon’ble

Commission has made necessary arrangements and given necessary directions

for implementation of the above regulations, the various tea establishments in the

state have been facing severe issues related to fair and transparent

implementation of these regulations by the WBSEDCL. In view of the same, ITA

has also requested to allow similar billing practice of residential accommodation

of the staff and executives within the tea estates in West Bengal through bulk

meters which may gradually be converted to individual connections in the due

course of time.

On the above referred submission the Commission is of the opinion that in case

of implementation problem of any existing regulation there are ways of remedies

by appealing before the appropriate authority under the statue on the basis of

specific case. Under Electricity Act 2003 regarding supply of electricity to

different residential premises within a tea estate there is no problem if the

occupier of the resident applies for such connection under normal domestic

category in accordance with the regulation subject to availability of right of way.



3.7.15 At present, the non-supply to tea estates is being considered on the basis of the

meter reading at the 33 KV sub-station from where 11 KV line emanates for

supply to such estates/ gardens. It is submitted that in a network which is largely

radial in its configuration, a measurement of outages and failures at a higher

voltage can only give a figure which is suppressed in comparison to the actual

extent of outages witnessed at the downstream lower voltage levels. Thus ITA

request that interruption benefit shall be passed on the basis of no supply record

after downloading the MRI records.

Commission has noted the point and issued relevant directions in the direction

chapter.

3.7.16 However, in West Bengal the subsidized categories continue to remain highly

cross-subsidized resulting in additional burden on the HT and industrial

consumers. As per the provisions 61(g) of the Electricity Act 2003, the guiding

principle for determination of tariff is “that the tariff progressively reflects the cost

of supply of electricity and also, reduces and eliminates cross-subsidies within

the period to be specified by the Appropriate Commission;” Therefore, it is

submitted that the consideration of average cost of supply for determination of

tariff for various categories is inappropriate and Hon’ble Commission is

requested to approve tariff for each consumer category based on the voltage-

wise cost of supply during the MYT Control Period. Determination of reasonable

tariff as per the voltage-wise cost of supply would help in accelerating the

industrial growth in the State of West Bengal.

In this regard Commission will follow the methods as provided in the Tariff

Regulation which has been framed after due stake-holders consultation through

previous publication of the draft regulation on tariff.



3.7.17 It is submitted that the existing demand charges for the industrial consumers are

amongst the highest as compared with the neighboring States as well as other

progressive States in the country.

Commission noted that ITA has not compared demand charges with all the

licensee of the neighboring state. Already the demand charge recovered under

the existing formula do not cover the entire fixed charge as should ideally been

done whereas the licensee has to pay the entire charge to the generator and

transmission licensees on the supply chain side. Thus it is not justifiable to

recover lesser demand charge as proposed on the basis of mere comparison

with other states ignoring the other commercial factors.

3.7.18 Further, WBSEDCL has also proposed additional demand charges. ITA would

like to highlight that the consumers are already being discouraged to draw power

during the peak period by way of higher energy charges which are approx. 40%

higher than energy charges during normal period. An additional demand charge

would further penalize the consumers which are already paying higher energy

charges for the power consumption during peak hours. Therefore, the Hon’ble

Commission is requested to disapprove the proposal for additional demand

charges.

Commission finds that there is no proposal of new additional demand charges

except what is exiting under the Tariff Regulation. Rather there are conditional

proposal of indirect relief from the part of additional demand charges through

rebate.

3.7.19 Since, 100% metering already exists in West Bengal and two-part tariff is already

introduced, the Hon’ble Commission is requested to abolish the minimum

charges in the tariff categories applicable for tea establishments in the State of

West Bengal.



As minimum charges is a provision under Tariff Regulation thus It will continue as

decided by the Commission.

3.7.20 ITA wants to bring to the attention of the Hon’ble Commission that in case of tea

gardens drawing bulk power and in the event of the installed meter becoming

defective, WBSEDCL continues to raise provisional bills without bothering to

replace the defective meter. The ITA prays to the Hon’ble Commission to direct

the WBSEDCL for replacement of defective meters within a given timeframe of

15 days from becoming/ being reported as defective and allow for generation of

not more than one provisional bill post identification of defective meter. In case of

inability of WBSEDCL to do so, adequate compensation should be provided to

the consumer for such delays.

In this issue Commission intends to draw attention to the all stakeholders that in

case of non-replacement of defective meter within due period as specified in

West Bengal Electricity Regulatory Commission ( Standards of Performance of

Licensees Relating to Consumer Services ) Regulations, 2010 as amended, the

aggrieved consumer can ask for relief inclusive of compensation under the West

Bengal Electricity Regulatory Commission (Guidelines for Establishment of

Forum for Redressal of Grievance of Consumers and Time and Manner of

Dealing with such Grievance by the Ombudsman) Regulations, 2013 as

amended.

3.7.21 The Petitioner has proposed tariff for Metro Traction category in the current

petition in anticipation of initiation of metro rail services during FY 2014-15.

However, the tariff proposed under this category is lower than average cost of

supply implying higher burden on the existing consumers in the state. In case the

Hon’ble Commission approves the proposal, it would result in increasing the

extent of cross subsidization amongst various tariff categories in the State. It is

submitted that the tariff for such new consumers/ categories should be



determined so as to recover actual category wise cost of supply. In appropriate

cases, the State Government may provide adequate subsidy for lowering such

tariffs.

On this issue Commission has already expressed its view in paragraph 3.3.6.

3.8 Indus Towers has stated the followings:

3.8.1 Classifying telecom towers under a separate sub-category within the existing

Commercial Category on taking a cue from the Section 62(3) of the Electricity Act

2003 and considering its socially favourable nature and the fact that 84% of the

power consumed by/ load of the telecom towers are fairly constant over a 24

hour period. Moreover, telecom towers do not contribute significantly to the peak

hour consumption of the discoms and are a part of the base load of the

distribution utility. Such a load profile doesn’t put pressure on the distribution

utility to buy additional power at peak hours at higher prices thereby leading to a

lower ‘cost to serve’ for such consumers.

The Commission has noted the point.

3.8.2 Since the current supply is not reliable and is deficient, the petitioner is forced to

use DG sets with battery back up on all BTS towers. It is thus within the rights of

the Commission to allow for open access in the category of LT consumers on a

case by case basis.

Commission has noted the point and finds that it would not be prudent at this

stage to allow open access for connected load below 1 MW.


CHAPTER – 4 SALES, ENERGY BALANCE &

VARIABLE COST


4.1 West Bengal State Electricity Distribution Co. Ltd. (WBSEDCL) has been

entrusted with the responsibility to supply electricity to different categories of

consumers scattered throughout the State. A small part of the energy

requirement for distribution and supply in its licensed area comes from the hydro

power stations and small diesel generating set under the ownership of

WBSEDCL while the balance energy requirement is sourced by way of purchase.

The energy generation at the own generating station and ex-bus energy available

from these stations after deduction of auxiliary consumption as per norms has

been considered in this order. The estimation of energy amount from own

generation of WBSEDCL as well as estimation of purchase of energy, purchase

price and the amount from different sources has been done keeping in view the

submissions of the different stakeholders.

4.2 WBSEDCL has projected the amount of power purchase from the sources from

whom they are drawing power as per existing agreement. WBSEDCL has also

projected purchase of power from the new units of WBPDCL, NTPC, DVC, other

generating companies and also through electricity traders to meet their demand

during the ensuing years under the fourth control period. WBSEDCL has

projected purchase of energy from different non-conventional and co-generation

sources during the ensuing years under the fourth control period to meet their

renewable power obligation (RPO) for the respective years.

4.2.1 The generation of energy from all Hydro Power Stations and Purulia Pumped

Storage Project (in short ‘PPSP’) projected by WBSEDCL for the ensuing years

2014-15, 2015-16 and 2016-17 are stated to be based on the actual trend upto

October, 2013 of 2013 – 2014. No generation from Rudranagar generating

station has been projected by WBSEDCL for the years 2014 – 2015, 2015 –

2016 and 2016 – 2017.



61

4.2.2 After getting the generated energy, the sent out energy from the above power

stations are calculated on the basis of normative auxiliary consumption.

4.3 For determination of energy that is to be admitted from the own generating

stations of WBSEDCL for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017,

following basis has been considered.

4.3.1 For projection of generation at Purulia Pumped Storage Project (PPSP) for the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017, the average generation of last

four years i.e., 2009-10, 2010-11, 2011-12 and 2012-13 has been considered

and the gross generation has been admitted at 828 MU for all the three ensuing

years. After considering normative auxiliary consumption (including

transformation loss) @ 1.7%, the net generation from PPSP during the years

2014 – 2015, 2015 – 2016 and 2016 – 2017 has been admitted by the

Commission at a level of 814 MU for all the three ensuing years. Considering

cycle efficiency of 74%, the pumping energy requirement for all the three ensuing

years are admitted at a level of 1119 MU.

4.3.2 The installed capacity of Jaldhaka Hydel Project Stage - I (JHP-I) after R&M work

as well as capacity addition of a new unit of 9 MW is increased to 36 MW (4 x 9

MW) during the year 2011-12. The Commission, thus, has viewed the actual

generation during 2012-13 and the generation at JHP-I projected by WBSEDCL

only to arrive at the admissible generation for the years 2014 – 2015, 2015 –

2016 and 2016 – 2017. WBSEDCL has proposed the gross generation at JHP-I

at 165.20 MU for all the three years 2014 – 2015, 2015 – 2016 and 2016 – 2017.

The actual generation at JHP-I during year 2012 – 2013 was 117.76 MU. The

Commission admits the generation from JHP-I at a level of 165.20 MU for all the

three ensuing years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as proposed by

WBSEDCL.



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4.3.3 The units of Jaldhaka Stage – II are stated to have started generation from

September, 2013 after completion of R&M work. The Commission admits the

generation from Jaldhaka Stage II at a level of 42 MU each year during 2014 –

2015, 2015 – 2016 and 2016 – 2017 as projected by WBSEDCL as generation

for a full year after R&M work at JHP-II is not available.

4.3.4 WBSEDCL has projected gross generation from Rammam HEP during the year

2014 – 2015, 2015 – 2016 and 2016 – 2017 at a level of 236.50 MU. The

average gross generation at Rammam HEP during the period 2009 – 2010 to

2012 – 2013 was 214.35 MU. The Commission, thus admits the gross generation

at 236.50 MU as projected by WBSEDCL for all the three ensuing years of 2014

– 2015, 2015 – 2016 and 2016 – 2017.

4.3.5 For the other generating stations at Little Rangit, Sindrapong, Richigton, Fazi and

Mongpoo-Kalikhola the generation as projected by WBSEDCL for the years 2014

– 2015, 2015 – 2016 and 2016 – 2017 has been considered as the projection is

made by WBSEDCL as per trend of generation and maintenance programme of

the respective generating station. The summated generation from those

generating stations has been considered at a level of 20.20 MU each year for the

ensuing years under the fourth control period.

4.3.6 For the hydel stations viz., Massanzore Generating Station, Teesta Canal Fall-

Stage-I ( TCF-I), Teesta Canal Fall Stage-II(TCF-II) and Teesta Canal Fall Stage-

III (TCF-III), the generation as projected by WBSEDCL for 2014 – 2015, 2015 –

2016 and 2016 - 2017 has been considered for following reasons:

a) Newly commissioned Massanzore has started generation from 2011-12

and thus actual generation for 2012 – 2013 is only available.



63

b) TCF – I, TFC- II and TFC-III are highly dependent on Irrigation Canal

Water availability and thus depend on number of co-ordination factor.

Thus the projection of WBSEDCL, being the coordinator, shall be

considered to be of better projection.

The projected generation from Massanzore Hydel Power at a level of 5.431 MU

for each year of period from 2014 – 2015 to 2016 – 2017 has been admitted by

the Commission. The summated projected generation from TCF-I, TCF-II and

TCF-III for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 at 93 MU, 102

MU and 105 MU respectively has been admitted by the Commission.

4.3.7 In view of the availability of grid power in the Sagar Island no sent out energy

from Rudranagar diesel generating station has been projected by WBSEDCL for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017. The Commission, thus,

considers nil generation from Rudranagar generating station for all the years

2014 – 2015, 2015 – 2016 and 2016 – 2017. Thus, no amount under the head

generation charge (fuel) is considered for all the three years under the fourth

control period.

4.3.8 The gross generation from the different hydel generating stations of WBSEDCL

and PPSP during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has

been admitted at 1390.331 MU, 1399.331 MU and 1402.331 MU respectively.

The details of the generation from different generating stations are given below:

Sl. No.

Name of Generating Station

Year 2014 – 2015 (MU) 2015 – 2016 (MU) 2016 – 2017 (MU)

1 PPSP 828.000 828.000 828.000 2 JHP – I 165.200 165.200 165.200 3 JHP – II 42.000 42.000 42.000 4 Rammam 236.500 236.500 236.500 5 Messanzore 5.431 5.431 5.431 6 TCF-I, TCF-II and TCF-III 93.000 102.000 105.000 7 Other generating stations 20.200 20.200 20.200 Total 1390.331 1399.331 1402.331



64

The auxiliary consumption for the generation from the different hydel generating

stations and PPSP has been considered at 19.623 MU, 19.713 MU and 19.743

MU respectively for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as per

norms specified in the Tariff Regulations.

4.4 The energy to be purchased by WBSEDCL from different sources during the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has been considered on the

following basis:

4.4.1 Purchase of Power from WBPDCL:

4.4.1.1 Power station wise sent out generation from the existing generating stations of

WBPDCL except Bandel TPS has been projected by WBSEDCL as per the

availability achieved by the respective generating stations during the year 2012 –

2013 and auxiliary consumption at normative level. WBSEDCL have, however,

projected the sent out generation from Bandel TPS at a lower level considering

the teething problem after renovation and modernization (R&M) works of unit V

during the year 2015 – 2016 and operation of units I to IV on stand-by mode after

R&M of Unit V. The Commission has considered the projection of WBSEDCL.

The capacity charge and energy charge for all the existing generating stations of

WBPDCL stated to have been projected by WBSEDCL reducing the annual

capacity charge of the respective generating station intimated by WBPDCL for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 based on actual plant

availability of those generating stations in 2012 – 2013. The Commission

considers the capacity charge for purchase of power from the existing generating

stations of WBPDCL as per capacity charge approved in the tariff order of

WBPDCL in case no. TP-59/13-14 for the respective years based on the

normative sent out generation vis-à-vis purchase of energy considered from the

respective generating stations during the years 2014 – 2015, 2015 – 2016 and



65

2016 – 2017. The Commission, however, considers the energy charges at the

rate as admitted in the tariff order of WBPDCL for the respective generating

stations for the concerned years.

4.4.1.2 WBSEDCL has projected purchase of 2253 MU and 5632 MU during the years

2015-16 and 2016-17 from the proposed units III and IV of Sagardighi TPS of

WBPDCL scheduled to be commissioned in 2015 – 2016 as per PAF (Plant

Availability Factor) achieved by Unit I & II of Sagardighi TPS in the year 2010-11.

The capacity charge and energy charge for the units III & IV has been estimated

by WBSEDCL same as that of Unit I & II. The Commission observes that

WBPDCL has not proposed for determination of tariff for Sagardighi TPS Units III

& IV along with their MYT application for the fourth control period. WBPDCL has

not also submitted any proposal for determination of tariff for Units III and IV of

Sagardighi TPS separately as per provisions of Tariff Regulations till date. The

Commission considers the purchase of energy from Sagardighi Units III & IV as

proposed by WBSEDCL during the years 2015 – 2016 and 2016 – 2017 while

the rate for such purchase of power is considered as per the rate as admitted for

Units I & II.

4.4.2 Purchase of power from the licensees within the State viz., DPL, DPSC Limited

and CESC Limited:

4.4.2.1 For grid power as well as radial power received from DPL, radial power received

from DPSC Ltd. and CESC Limited the amount of electrical energy have been

taken as per projection of WBSEDCL for the years 2014 – 2015, 2015 – 2016

and 2016 – 2017 and the power purchase prices have been considered as are

being determined by the Commission.

4.4.3 Purchase of power from Damodar Valley Corporation (DVC):



66

4.4.3.1 It is submitted by WBSEDCL that the power purchase cost from different

generating stations of DVC have been projected for the year 2014 – 2015 as per

energy bill of October, 2013.

The energy charge rates for purchase of power from the generating stations of

DVC for the years 2015-16 and 2016-17 stated to have been escalated @

6.62% annually as per escalation rate notified for domestic coal in CERC

notification no. ECO/2/2013-CERC dated 07.10.2013 for bid evaluation in case –

I bidding. WBSEDCL has considered the capacity charges for 2014-15 for the

generating stations of DVC as per the bill for October, 2013 which the

Commission admits. The capacity charge for those generating stations has,

however, been projected with an annual escalation rate of 5%.

4.4.3.2 The Commission observes that as per latest notification no. Eco-2/2014-CERC

dated October 1, 2014 of CERC, the escalation rate for domestic coal is 1.24%

and the Commission considers such escalation rate of 1.24% for the years 2015

– 2016 and 2016 – 2017 for purchase of power from DVC where the domestic

coal is used. It is also observed from the said notification of CERC that the

inflation rate for indexed capacity charge is 1.6% and the Commission considers

the same.

4.4.3.3 WBSEDCL has projected 89.227 MU, 100.184 MU and 65.369 MU to be

purchased from DVC at 33 kV at radial mode during the years 2014 – 2015, 2015

– 2016 and 2016 – 2017 respectively to meet the demand of some areas at

Asansol, Burdwan and other areas of WBSEDCL. It is also stated by WBSEDCL

that they will extend the grid in phases. WBSEDCL has also projected 117.54

MU to be purchased from DVC at 132 kV at radial mode during the years 2014 –

2015, 2015 – 2016 and 2016 – 2017 to meet the local demand. The Commission

considers the projection of WBSEDCL for the years 2014 – 2015, 2015 – 2016



67

and 2016 – 2017 as those projected purchase of energy is required to meet the

local demand of WBSEDCL. WBSEDCL has projected the power purchase costs

for 2014 – 2015 as per energy bill for October, 2013 and considers an annual

escalation @ 6.62% in energy charge and 5% in capacity charge for the years

2015 – 2016 and 2016 – 2017. The Commission, however, considers annual

escalation @ 1.24% and 1.6% in energy charge and capacity charge respectively

for the years 2015 – 2016 and 2016 – 2017 as already explained in paragraph

4.4.3.2 above.

4.4.3.4 WBSEDCL is receiving 50.00 MW of power from unit V of Mejia Thermal Power

Station of DVC (in short ‘MTPS’) and 200 MW of power from the units VII and VIII

of MTPS through grid. WBSEDCL has projected purchase of power from unit V

of MTPS upto August 2016 and from units VII and VIII of MTPS upto July 2015

as per provisions of the respective power purchase agreement (PPA).

WBSEDCL has projected 339 MU, 339 MU and 141.25 MU as purchase from

MTPS unit V during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017

respectively and the Commission admits the same. WBSEDCL has also

projected 1337 MU and 446 MU as purchase from units VII and VIII of MTPS

during the years 2014 – 2015 and 2015 – 2016 respectively. The Commission

also admits the same. The Commission also considers the power purchase rate

as projected by WBSEDCL for the year 2014 – 2015. The Commission, however,

considers escalation on energy charge and capacity charge annually @ 1.24%

and 1.6% for the years 2015 – 2016 and 2016 – 2017 as explained in paragraph

4.4.3.2 above.

4.4.4 WBSEDCL has projected purchase of power from the units of Koderma TPS of

DVC projected to be commissioned in April, 2014. It is submitted that WBSEDCL

would receive 200 MW grid power supply from Koderma TPS of DVC as per the

power purchase agreement executed with them. WBSEDCL has projected



68

purchase of power from Koderma TPS at a level of 631 MU during the year 2014

– 2015 which has been admitted by the Commission. WBSEDCL has, however,

not projected any purchase of power from Koderma TPS for the years 2015 –

2016 and 2016 – 2017 and thus the Commission does not consider any

purchase from the said source during the years 2015 – 2016 and 2016 – 2017.

The Commission also considers the power purchase price as projected by

WBSEDCL for the year 2014 – 2015.

4.4.5 Purchase of power from NTPC Limited (NTPC):

4.4.5.1 WBSEDCL has projected the energy charge for purchase of power from NTPC’s

generating stations for the year 2014-15 as per the average energy rate of the

respective generating station upto October 2013 of 2013 – 2014 or the energy

charge rate for October, 2013 whichever is higher. WBSEDCL has considered an

annual escalation @ 7.51% for the year 2015 – 2016 and 2016 – 2017 for

FSTPS St. I & II and FSTPS St. – III considering blending ratio of approx. 14:86

for imported coal and domestic coal as per the blending during the period April

2013 to October, 2013 and escalation rate @ 6.62% and 12.97% for domestic

coal and imported coal as per CERC notification dated 07.10.2014 for bid

evaluation in Case I bidding. Accordingly, WBSEDCL for Talcher STPS (TSTPS)

has considered annual escalation in energy charge rate @ 7.56% considering

blending ratio of imported coal and domestic as 15:85 as per blending ratio

during April 2013 to October 2013 and the escalation rate for domestic coal and

imported coal as per CERC’s notification for bid evaluation for Case – I bidding.

WBSEDCL has considered the capacity charge of 2013 – 2014 of the respective

generation stations of NTPC as per the tariff order for 2009 - 2014 for the years

2014 – 2015 which the Commission admits. An annual escalation @ 5% for

capacity charge has been projected for the years 2015 – 2016 and 2016 – 2017.



69

The Commission observes that as per the notification no. Eco-2/2014-CERC

dated October 1, 2014 of CERC, the escalation rate for domestic coal and

imported coal are 1.24% and (-)15.09% respectively and the inflation rate to be

applied to indexed capacity charge component is 1.60%. The Commission thus

does not consider any escalation in the energy charge for purchase of power

from NTPC Limited where the blending of domestic coal and imported coal stated

to have been 86:14 for FSTPS St. – I & II and FSTPS St. – III and 85:15 for

TSTPS.

The Commission, however, considers the escalation in capacity charge for

purchase of power from the generating stations of NTPC @ 1.6% instead of 5%,

as proposed by WBSEDCL, for the years 2015 – 2016 and 2016 – 2017.

4.4.5.2 The quantum of energy purchase from FSTPS Stage – I & II and FSTPS Stage –

III of NTPC have been projected by WBSEDCL for all the years 2014 – 2015,

2015 – 2016 and 2016 – 2017 at a level of 2856.00 MU and 874.00 MU

respectively as per the actual plant availability (74.22%) of the station during

2012-13 and allocation of power to WBSEDCL from the power station.

WBSEDCL has also projected 588.00 MU for all the three ensuing years of 2014

– 2015, 2015 – 2016 and 2016 – 2017 from the Talcher STPS of NTPC on the

basis of actual plant availability (81.93% in 2012-13) and considering the

allocated share of power to WBSEDCL from Talcher STPS

4.4.5.3 The Commission has observed from the annual report and accounts of

WBSEDCL for the year 2012 – 2013 that the summated purchase of power by

WBSEDCL from NTPC Limited was 3763.574 MU against power purchase cost

of Rs. 141299.00 lakh resulting in an average rate of 375.44 paise / kWh during

the year 2012 – 2013. It is also observed from the Monthly Variable Cost

Adjustment (MVCA) worksheets of WBSEDCL for the month of October, 2014



70

that the purchase of power during the period of April, 2014 to October, 2014 (7

months) from FSTPS Stage – I & II, FSTPS Stage – III and TSTPS of NTPC is

1437.89 MU, 482.47 MU and 338.80 MU respectively and the corresponding

average rate of power purchase works out at 420.17 paise / kWh, 515.50 paise /

kWh and 232.32 paise / kWh. The average rate of purchase of power from NTPC

during the period April, 2014 to October, 2014 as per MVCA worksheet for

October, 2014 comes at 412.36 paise / kWh. WBSEDCL has projected the

average rate of purchase of power from NTPC during the year 2014 – 2015 at

412.63 paise / kWh which, in the opinion of the Commission, is reasonable and

thus the Commission admits the projection of WBSEDCL for the year 2014 –

2015. The Commission also admits the quantum of purchase of power by

WBSEDCL during the year 2015 – 2016 and 2016 – 2017 as projected by

WBSEDCL. The Commission considers annual escalation @ 1.6% for the

capacity charge of the respective generating station for the year 2015 – 2016 and

2016 – 2017 as already stated in paragraph 4.4.5.1 above. The Commission,

however, does not consider any hike in energy charge rate for the years 2015 –

2016 and 2016 – 2017 as mentioned in paragraph 4.4.5.1 above.

4.4.6 Purchase of Power from NTPC Vidyut Vyapar Nigam Limited:

4.4.6.1 WBSEDCL is purchasing 35 MW of bundled power from NTPC Vidyut Vyapar

Nigam Limited (NVVNL). WBSEDCL has projected purchase of power from

NVVNL at a level of 306.60 MU, 328.50 MU and 438.00 MU during the years

2014 – 2015, 2015 – 2016 and 2016 – 2017 considering purchase of bundled

power to the tune of 70 MW, 75 MW and 100 MW respectively, which is admitted

by the Commission. WBSEDCL has projected the power purchase costs for 2014

– 2015 as per energy bill for October, 2013 and considers an annual escalation

@ 6.62% in energy charge for the years 2015 – 2016 and 2016 – 2017 as per

escalation rate notified for domestic coal in CERC’s notification no. Eco 2/2013-



71

CERC dated 07.10.2013 for bid evaluation in case I bidding. The Commission

considers the energy charge as proposed by WBSEDCL for 2014 – 2015. The

Commission, however, considers no escalation in energy charge for the years

2015 – 2016 and 2016 – 2017 as already explained in paragraph 4.4.5.1 above.

4.4.7 Purchase of power from Hydel Power Station in Bhutan through PTC India

Limited:

4.4.7.1 The total energy to be received from three power stations of Bhutan namely

Chukha, Kiruchu and Tala Hydro Electric Project (HEP) through PTC India

Limited (in short ‘PTC’) have been considered as per projection of WBSEDCL.

For Tala HEP the purchase of energy is projected by WBSEDCL at 1185.00 MU

for all the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 and the same is

admitted. For Chukha HEP and Kiruchu HEP the projected purchase of energy

are 480.00 MU and 60.00 MU respectively for all the three years 2014 – 2015,

2015 – 2016 and 2016 – 2017 and the same is admitted by the Commission. The

power purchase costs from those three different power stations are projected by

WBSEDCL as per the existing tariff order of CERC and the same are admitted by

the Commission.

4.4.8 Purchase of Energy from NHPC Limited:

4.4.8.1 WBSEDCL has projected the purchase of energy at a level of 95 MU from

Rangeet HEP for all the three years 2014 – 2015, 2015 – 2016 and 2016 – 2017

on the basis of existing trend and allocated share to WBSEDCL from the

respective generating stations. The existing price of purchase of power from

Rangeet HEP has been projected for all the years of 2014 – 2015, 2015 – 2016

and 2016 – 2017. The Commission has observed that average of actual drawal

by WBSEDCL from Rangeet HEP of NHPC during the period 2009 – 2010 to

2012 – 2013 was 93.69 MU. Thus, the Commission admits the purchase of



72

energy from Rangeet HEP at a level of 95 MU for all the three years 2014 –

2015, 2015 – 2016 and 2016 – 2017 as projected by WBSEDCL. The

Commission considers the fixed charge as Rs. 2438.80 lakh for all three years as

projected by WBSEDCL as per existing price.

4.4.8.2 The Commission has observed that purchase of energy by WBSEDCL from

Teesta V of NHPC during the year 2012 – 2013 was 535.728 MU. It is also seen

from the worksheet of computation of MVCA for the month of October, 2014 that

the purchase of energy from Teesta V HEP during the period April 2014 to

October, 2014 (7 months) is 486 MU. The Commission thus admits 535 MU as

purchase from Teesta V HEP for all the three years 2014 – 2015, 2015 – 2016

and 2016 – 2017 as projected by WBSEDCL. The Commission also admits the

fixed costs of Rs. 12094.74 lakh to be paid by WBSEDCL for such purchase of

energy from Teesta V HEP for all the three years of 2014 – 2015, 2015 – 2016

and 2016 – 2017 as projected by WBSEDCL as per existing price.

4.4.8.3 WBSEDCL has 100% share for the generation from 132 MW Teesta Low dam

(TLDP) – III and 160 MW TLDP – IV of NHPC as per the executed PPA. The first

unit of TLDP – III has been commissioned in April, 2013 and the rests are within

May, 2013. WBSEDCL has projected 458 MU each year for 2014 – 2015, 2015 –

2016 and 2016 – 2017 as purchase of energy from TLDP – III considering 95%

of the designed energy of the station. The Commission admits the same.

WBSEDCL has projected the purchase cost as per tariff application of NHPC at

an average rate of 613.76 p/kWh. The Commission observes from the worksheet

of MVCA computation of WBSEDCL for the month of October, 2014 that the

average rate of purchase of power from TLDP III is 664.03 paise / kWh. Thus,

the Commission considers the power purchase cost as projected by WBSEDCL

for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017. WBSEDCL has stated

that as per letter dated 11.07.2013 of NHPC (copy enclosed in Appendix A of



73

their Tariff petition) expected date of commissioning of all the four units of TLDP

– IV is April, 2015. Accordingly, WBSEDCL has projected the purchase of energy

from TLDP IV at a level of 555 MU for the years 2015 – 2016 and 2016 – 2017

and the Commission admits the same. The Commission also considers the price

of purchase of power from TLDP IV for the years 2015 – 2016 and 2016 – 2017

as projected by WBSEDCL.

4.4.9 Purchase of power from Baglihar HEP:

4.4.9.1 For the power purchase from Baglihar HEP through PTC the price and quantum

are accepted by the Commission for all the three years of 2014 – 2015, 2015 –

2016 and 2016 – 2017 as projected by WBSEDCL.

4.4.10 Purchase of Power from Maithon Right Bank Thermal Power Project:

4.4.10.1 WBSEDCL is receiving 300.00 MW of power from Maithon Right Bank Thermal

Power Project (MRBTPP) through grid. WBSEDCL has projected purchase of

power from MRBTPP as per provisions of the power purchase agreement (PPA)

at a level of 1722 MU during all the years 2014 – 2015, 2015 – 2016 and 2016 –

2017 and the Commission admits the same. In order to compute the capacity

charge for the power to be drawn by WBSEDCL from MRBTPP, WBSEDCL has

considered the existing capacity charge rate of 2013 – 2014 for the year 2014 –

2015 and projected an annual escalation rate of 5% on the capacity charge of

2014 – 2015 for the years 2015 – 2016 and 2016 – 2017. The Commission,

however, considers annual escalation @ 1.24% and 1.6% in energy charge and

capacity charge respectively for the years 2015 – 2016 and 2016 – 2017 as

already explained in paragraph 4.4.5.1 above where the domestic coal is used.



74

4.4.11 Purchase of power from new projects:

4.4.11.1 WBSEDCL has stated that 28.5 MW power to be purchased by them from

Bhasmay Hydro Power Station (2x27 MW) of Gati Infrastructure Bhasmay Power

Private Limited (GIBPPL) and projected 100 MU as purchase during the year

2016 – 2017. The expected date of commissioning of the Bhasmay hydro power

station is April, 2016 as stated by WBSEDCL. The Commission admits the

energy and cost of power purchase from Bhasmay hydro power station as

projected by WBSEDCL for the year 2016 – 2017.

4.4.11.2 WBSEDCL will purchase 100 MW power from Adhunik Power and Natural

Resources Limited (in short ‘APNRL’) through PTC during the year 2014 – 2015,

2015 – 2016 and 2016 – 2017. WBSEDCL has projected 710 MU to be

purchased by them each year of 2014 – 2015, 2015 – 2016 and 2016 – 2017.

The quantum of power and cost thereof as projected by WBSEDCL as per the

agreement for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 is admitted

by the Commission.

4.4.11.3 WBSEDCL shall purchase 350 MW contracted power from Monet Power

Company Limited through PTC. WBSEDCL has projected the purchase of

energy as 2606 MU each year during the years 2015 – 2016 and 2016 – 2017

which the Commission admits. The power purchase cost is projected considering

the rate of power purchase as per the agreement and the same is also admitted

by the Commission.

4.4.12 WBSEDCL has projected purchase of short term power of 1016.95 MU for the

year 2014-15 only to meet the gap between supply of power and system demand

generally observed in the months of March and April and sometimes in other

period of the year. WBSEDCL has stated that the short term power will be

purchased either through purchase or short term arrangement or through import



75

of power under swap arrangement. WBSEDCL has also submitted that incase of

requirement of short term power during 2015-16 and 2016-17 that shall be

intimated through APR application for incorporation in the tariff order of the

respective years. The purchase price for short term power for the period 2014-15

has been considered as 323.96 paise / kWh projected by WBSEDCL as obtained

against tender for procurement of short term power in April 2014 and May 2014.

4.4.13 The quantum of power purchase from Renewable and Co-generation sources as

proposed in the MYT application for the years 2014-15, 2015-16 and 2016-17 are

being admitted by the Commission. The rates of purchase for such power are as

per the agreement executed with the respective agencies. The admitted

purchase of energy from these power stations and the cost therefor are as

follows:

Sl. No. Agency

2014 - 2015 2015 - 2016 2016 - 2017 Qty

(MU) Amount (in lakh)

Qty (MU)

Amount (in lakh)

Qty (MU)

Amount (in lakh)

1 WBREDA 1.20 48.00 1.20 48.00 1.20 48.00 2 Nippon Power Limited 11.00 396.00 11.00 396.00 11.00 396.00 3 Neora Hydro Limited 6.70 241.31 6.70 241.31 6.70 241.31 4 Shree Renuka Sugars Limited 50.00 1380.00 50.00 1380.00 50.00 1380.00

5 Himadri Chemicals & Industries Limited 28.00 767.20 28.00 767.20 28.00 767.20

6 Reshmi Cements Limited 3.00 85.20 3.00 85.20 3.00 85.20 7 Electro Steel Casting Limited 42.00 1062.60 42.00 1062.60 42.00 1062.60 8 Tata Power Co. Ltd., Haldia 160.00 2976.00 160.00 2976.00 160.00 2976.00 9 Ennore Coke 13.00 273.00 13.00 273.00 13.00 273.00

10 Bengal Energy Limited 208.00 5907.20 208.00 5907.20 208.00 5907.20 11 Concast Bengal Ind. Limited 44.00 1403.60 44.00 1438.80 44.00 1469.60

Total 566.90 14540.11 566.90 14575.31 566.90 14606.11

This admitted energy for purchase of power from Renewable and Co-generation

sources should not be construed as giving clearance of meeting the obligation on

purchase from renewable and co-generation sources of energy.



76

4.4.14 The purchase price of electricity by WBSEDCL from CESC Limited are

considered as 590 paise / kWh, 610 paise / kWh and 625 paise / kWh as

proposed by WBSEDCL for 2014 – 2015, 2015 – 2016 and 2016 – 2017

respectively during the fourth control period. The purchase price of power from

DPSCL is considered as 540 paise / kWh for all the three years under the fourth

control period. The purchase price from DPL is considered as 380 paise / kWh

for purchase at 132 / 220 KV and 395 paise / kWh for 33 / 11 KV for all the three

years under the fourth control period.

4.4.15 Notwithstanding whatever else is contained elsewhere in contrary to this order

the above referred price and quantum on energy as considered is for the purpose

of projection in this tariff order only subject to the following conditions.

i) Such price and quantum will be changed/ modified by the Commission

during the stage of FPPCA on submission of audited data.

ii) On receipt of any further development these prices/ cost of power

purchase by WBSEDCL may be further adjusted in the quantum, price

and their cost implication on power purchase cost in the tariff order for the

year 2015-16 and 2016 – 2017 as per Tariff Regulations.

iii) In addition to the above mentioned price the purchase cost may vary in

on applicability of MVCA or MFCA or FCA or FPPCA or any other

regulatory order/ approval in accordance with the Act and rules /

regulations framed thereunder and any other statue or international

bilateral agreement.

iv) Though the energy quantum from Bandel, Santaldih and Sagardighi

(State I) generating stations of WBPDCL is considered under this order at

a reduced level than normative level but it does not limit WBPDCL from



77

generating at its normative level or at higher level than norms at those

generating stations.

4.4.16 The purchase price/cost of electricity by WBSEDCL from different licensees shall

be as per Annexure-4A for the years 2014-15, 2015-16 and 2016-17. However,

such purchase prices are subject to variation due to changes in their prices as

already explained in paragraph 4.4.15 above.

4.4.17 Out of the above purchase almost all the energy is being available at the

generation bus-bar except a part of the DVC and power drawn from other

licensee at HV level in radial mode. The radial mode feeding from any licensee is

considered at the point of injection in the distribution system. The feeding by

DVC in the grid (132 KV) is in the STU system. The injected energy of DVC Mejia

is considered at the generating bus-bar.

4.5 The Commission now draws the energy balance for the years 2014 – 2015, 2015

– 2016 and 2016 – 2017 considering the admitted net generation from different

generating stations of WBSEDCL and the purchase of power from different

agencies as detailed in the foregoing paragraphs and the sale of energy to own

consumers and other licensees as projected by WBSEDCL for the respective

years. Accordingly, the energy balance is shown in the table in Annexure – 4B.

4.6 For above energy balance distribution loss in the distribution system and the

transmission loss in transmission systems of WBSETCL have been considered

as per the norms as specified in the Tariff Regulations for 2014-15, 2015-16 and

2016 – 2017 respectively.

4.7 For merit order dispatch, SLDC / ALDC of WBSEDCL shall consider the energy

charge of the generating stations as determined in the prevailing relevant tariff

orders for the generating companies / licensees.



78

Monthly Fuel Cost Adjustment (MFCA) or Monthly Variable Cost Adjustment

(MVCA) as may be applicable shall be added to the above energy charge for

merit order dispatch as notified by WBPDCL or DPL or DPSCL or CESC for their

respective generating stations or sales as licensee for the concerned month.

4.8 For power stations of NTPC and DVC, WBSEDCL shall provide on monthly basis

to SLDC / ALDC of WBSEDCL the average value of fuel related cost on the basis

of last three months which are available to WBSEDCL in order to consider such

cost for merit order dispatch. Such information shall be given to SLDC on each

month for each power station within three working days of receiving the power

purchase bill for that power station on the basis of the amount mentioned in the

bill. For this purpose for NTPC the summated amount of base energy charge and

fuel price adjustment (FPA) shall be considered as effective energy charge.

Similarly for DVC the summation of energy charge and fuel cost surcharge (FCS)

shall be considered as effective energy charge. Such effective energy charge

shall then be considered by SLDC / ALDC of WBSEDCL for merit order dispatch

purpose only. In case of single part tariff where fixed charge recovery through

target availability is not done, the tariff itself will be considered as energy charge

for merit order dispatch.


ANNEXURE – 4A


Sheet 1/3 DETAIL OF POWER PURCHASE COST ADMITTED BY COMMISSION

Sl. No Agency

2014-15 2015-16 2016-17

Energy Capacity Charge

Energy Charge Amount Avg.

Rate Energy Capacity Charge




Rate (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit)

1 WBPDCL a KTPP 7230.00 42315.17 245.47 219789.98 304.00 7230.00 51723.55 245.47 229198.36 317.01 7230.00 54674.02 245.47 232148.83 321.09 b BkTPS 7634.00 75484.33 216.33 240630.65 315.21 7634.00 83556.94 216.33 248703.26 325.78 7634.00 85349.07 216.33 250495.39 328.13 c SgTPS - Stg I 3709.00 43495.03 217.23 124065.64 334.50 3709.00 41662.67 217.23 122233.28 329.56 3709.00 42438.66 217.23 123009.27 331.65 d SgTPS - Stg II 0.00 0 0.00 2253.00 25307.629 217.23 74249.55 329.56 5632.00 64441.77 217.23 186785.71 331.65 e BTPS 2099.00 9846.68 270.27 66576.35 317.18 1361.00 8208.24 270.27 44991.99 330.58 1361.00 8786.15 270.27 45569.90 334.83 f STPS 2344.00 33399.12 217.05 84275.64 359.54 2344.00 33478.4 217.05 84354.92 359.88 2344.00 32944.51 217.05 83821.03 357.60

Total WBPDCL 23016.00 204540.33 735338.262 319.49 24531.00 243937.43 803731.35 327.64 27910.00 288634.18 921830.1242 330.29

2 DPL

a DPL at 132/220

KV 90.00 0.00 380.00 3420.00 380.00 90.00 0.00 380.00 3420.00 380.00 90.00 0.00 380.00 3420.00 380.00

b DPL at 33 and 11

KV (Radial) 84.00 0.00 395.00 3318.00 395.00 84.00 0.00 395.00 3318.00 395.00 84.00 0.00 395.00 3318.00 395.00

Total DPL 174.00 0.00 6738.00 387.24 174.00 0.00 6738.00 387.24 174.00 0.00 6738.00 387.24 3 DPSCL 95.90 0.00 540.00 5178.49 540.00 84.94 0.00 540.00 4586.76 540.00 72.97 0.00 540.00 3940.16 540.00 4 DVC

a DVC - 132 KV( Radial mode) 89.23 1645.26 254.28 3914.12 438.67 100.18 1876.85 257.43 4455.89 444.77 65.37 1244.22 260.62 2947.87 450.96

b DVC -33 KV &11 KV( Radial mode) 117.54 2167.32 254.58 5159.65 438.97 117.54 2202.00 257.74 5231.48 445.08 117.54 2237.23 260.94 5304.32 451.28

c DVC - Mejia V 339.00 4939.08 256.56 13636.46 402.26 339.00 5018.11 259.74 13823.30 407.77 141.25 2124.33 262.96 5838.64 413.36

d DVC - Mejia VII &

VIII 1337.00 27358.68 215.60 56184.40 420.23 446.00 9272.40 218.27 19007.24 426.17 0.00 0.00 0.00

e DVC - Kodarma 631.00 13869.38 181.80 25340.96 401.60 0.00 0.00 0.00 0.00 0.00 Total DVC 2513.77 49979.72 104235.61 414.66 1002.72 18369.36 42517.90 424.02 324.16 5605.78 14090.83 434.69



ANNEXURE – 4A

Sheet – 2/3

Sl. No Agency

2014-15 2015-16 2016-17








5 CESC Ltd 48.00 0.00 590.00 2832.00 590.00 48.00 0.00 610.00 2928.00 610.00 48.00 0.00 625.00 3000.00 625.00 6 Govt. of Sikkim 0.10 0.00 437.00 4.37 437.00 0.10 0.00 437.00 4.37 437.00 0.10 0.00 437.00 4.37 437.00

7 PTC (India)

Limited

a CHP 480.00 0.00 184.00 8832.00 184.00 480.00 0.00 184.00 8832.00 184.00 480.00 0.00 184.00 8832.00 184.00 b Kurichhu 60.00 0.00 203.00 1218.00 203.00 60.00 0.00 203.00 1218.00 203.00 60.00 0.00 207.98 1247.88 207.98 c Tala 1185.00 0.00 202.00 23937.00 202.00 1185.00 0.00 202.00 23937.00 202.00 1185.00 0.00 207.70 24612.45 207.70 d Baglihar 607.00 0.00 372.30 22598.61 372.30 607.00 0.00 372.30 22598.61 372.30 607.00 0.00 372.30 22598.61 372.30

Total PTC 2332.00 0.00 56585.61 242.65 2332.00 0.00 56585.61 242.65 2332.00 0.00 57290.94 245.67 8 NTPC Ltd a FSTPS- St I & II 2856.00 28755.90 315.50 118862.70 416.19 2856.00 29215.99 315.50 119322.79 417.80 2856.00 29683.45 315.50 119790.25 419.43 b FSTPS- St III 874.00 17687.10 313.20 45060.78 515.57 874.00 17970.09 313.20 45343.77 518.81 874.00 18257.61 313.20 45631.29 522.10 c TSTPS 588.00 5310.80 152.00 14248.40 242.32 588.00 5395.78 152.00 14333.38 243.76 588.00 5482.11 152.00 14419.71 245.23

Total NTPC 4318.00 51753.80 178171.88 412.63 4318.00 52581.86 178999.94 414.54 4318.00 53423.17 179841.25 416.49 9 MAITHON RB 1722.00 28441.00 208.00 64258.60 373.16 1722.00 28896.05 210.58 65157.93 378.39 1722.00 29358.39 213.19 66069.71 383.68 10 NHPC

a NHPC - Rnageet

(REA) 95.00 2438.80 0.00 2438.80 256.72 95.00 2438.80 0.00 2438.80 256.72 95.00 2438.80 0.00 2438.80 256.72

b NHPC - Teesta V

(REA) 535.00 12094.70 0.00 12094.70 226.07 535.00 12094.70 0.00 12094.70 226.07 535.00 12094.70 0.00 12094.70 226.07

c Teesta Low Dam

III 458.00 0.00 613.76 28110.21 613.76 458.00 0.00 613.76 28110.21 613.76 458.00 0.00 613.76 28110.21 613.76

d Teesta Low Dam

IV 0.00 0.00 0.00 555.00 0.00 461.70 25624.35 461.70 555.00 0.00 461.70 25624.35 461.70

NHPC TOTAL 1088.00 14533.50 42643.71 391.95 1643.00 14533.50 68268.06 415.51 1643.00 14533.50 68268.06 415.51



ANNEXURE – 4A Sheet – 3/3

Sl. No Agency

2014-15 2015-16 2016-17








11 NVVNL-Bundled Power 306.60 0.00 545.60 16728.10 545.60 328.50 0.00 545.60 17922.96 545.60 438.00 0.00 545.60 23897.28 545.60

12 Adhunik Power (thru PTC india Ltd.) 710.00 15137.20 95.10 21889.30 308.30 710.00 15137.20 98.09 22101.59 311.29 710.00 15137.20 101.27 22327.37 314.47

13 Monet Power 0.00 0.00 0.00 2606.00 55559.92 104.09 82685.77 317.29 2606.00 54804.18 107.27 82758.74 317.57 14 Bhasmay 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 529.60 5296.00 529.60

15 Non Conventional and renewable Sources

WBREDA 1.20 0.00 400.00 48.00 400.00 1.20 0.00 400.00 48.00 400.00 1.20 0.00 400.00 48.00 400.00 Nippon Power Limited 11.00 0.00 360.00 396.00 360.00 11.00 0.00 360.00 396.00 360.00 11.00 0.00 360.00 396.00 360.00 Neora Hydro Limited 6.70 0.00 360.00 241.31 360.00 6.70 0.00 360.00 241.31 360.00 6.70 0.00 360.00 241.31 360.00

Shree Renuka Sugars Ltd. 50.00 0.00 276.00 1380.00 276.00 50.00 0.00 276.00 1380.00 276.00 50.00 0.00 276.00 1380.00 276.00

Himadri Chemicals & Industries Ltd 28.00 0.00 274.00 767.20 274.00 28.00 0.00 274.00 767.20 274.00 28.00 0.00 274.00 767.20 274.00

Reshmi Cements Ltd 3.00 0.00 284.00 85.20 284.00 3.00 0.00 284.00 85.20 284.00 3.00 0.00 284.00 85.20 284.00

Electro Steel Casting Limited 42.00 0.00 253.00 1062.60 253.00 42.00 0.00 253.00 1062.60 253.00 42.00 0.00 253.00 1062.60 253.00

Tata Power Co. Ltd. Haldia 160.00 0.00 186.00 2976.00 186.00 160.00 0.00 186.00 2976.00 186.00 160.00 0.00 186.00 2976.00 186.00

Ennore Coke 13.00 0.00 210.00 273.00 210.00 13.00 0.00 210.00 273.00 210.00 13.00 0.00 210.00 273.00 210.00 Bengal Energy Limited 208.00 0.00 284.00 5907.20 284.00 208.00 0.00 284.00 5907.20 284.00 208.00 0.00 284.00 5907.20 284.00

Concast Bengal Ind. Ltd. 44.00 0.00 319.00 1403.60 319.00 44.00 0.00 327.00 1438.80 327.00 44.00 0.00 334.00 1469.60 334.00

Total Non Conventional & Renewable

566.90 0.00 14540.11 256.48 566.90 0.00 14575.31 257.10 566.90 0.00 14606.11 257.65

16 Short Term Power 1016.95 0.00 323.96 32944.47 323.96 0.00 0.00 0.00 0.00 0.00 0.00 17 Total 37908.21 364385.55 242.08 1282088.50 338.21 40067.17 429015.31 234.05 1366803.54 341.13 42965.13 461496.40 234.72 1469958.94 342.13


ANNEXURE – 4B

ENERGY BALANCE

82

Sheet – 1/2

A Energy Input Unit Derivatives 2014-15 2015-16 2016-17 1 Generation MU A 1390.331 1399.331 1402.331 2 Auxiliary Consumption MU B1 19.623 19.713 19.743 3 Units delivered to system from generation [Form 1.5] MU C=A-B1 1370.708 1379.618 1382.588

3(a) Units delivered to system from generation at EHV MU C1=C-D-C 1345.333 2 1354.243 1357.213 3(b) Units delivered to system from generation at HV MU D 25.375 25.375 25.375

4 Quantum of Infirm power included in 3 MU C 0 2 0 0 5 Energy Purchased at EHV MU E 37472.248 39631.203 42575.953 6 Power Drawn under UI Mode MU F 0 0 0 7 Energy Received for Wheeling at 132 KV MU G 0.000 0.000 0.000 8 Less: CTU Loss MU H 309.725 356.230 344.071

9 Overall Gross Energy Input to WBSETCL System MU I=C1+E+F+G-H 38507.856 40629.216 43589.095

10 WBSETCL Loss % J 3.4% 3.4% 3.4% 11 WBSETCL Loss in MU MU K=I*J/100 1309.267 1381.393 1482.029 12 Net Energy available from WBSETCL System MU L=I-K 37198.589 39247.823 42107.066

13 Energy sold to person other than consumer and licensee at EHV MU M 3867.165 4094.166 3542.166

14 Energy sold to licensee at EHV and Sale to Sikkim MU N 2057.00 877.00 932.00

15 Additional units allowed by Commission for sale to other licensees MU O 72.4 30.867 32.803

16 (a) Units sold/ used for pumping energy of Pumped Storage Project MU P 1119.000 1119.000 1119.000

16(b) Trans. Loss for pumping energy MU Q 39.385 39.385 39.385 17 SWAP OUT MU 0 0 0 18 UI OUT MU R 0 0 0

19 Total Energy goes out from WBSETCL System at EHV MU S=M+N+O+P+Q+R 7154.950 6160.418 5665.354

20 Net Energy available from WBSETCL System to WBSEDCL MU T=L-S 30043.639 33087.405 36441.712

21 Own sent Out at 33 KV and below MU U=C2 25.375 25.375 25.375 22 Energy purchased by WBSEDCL at 33 KV & below MU V 435.965 435.964 389.175 23 Energy Received for Wheeling at 33 KV [Form 1.9a] MU W 17.000 17.000 17.000 24 Total Energy available to WBSEDCL system MU X=T+U+V+W 30521.979 33565.744 36873.262


83

ANNEXURE – 4B Sheet – 2/2

B Energy Utilization [Form 1.7] Unit Derivatives 2014-15 2015-16 2016-17 a. Units sold to consumers MU Y 24785.100 27232.1 29921.1 b. Energy sold to licensee below EHV level [Form 1.9b] MU Z 333.900 394.22 431.3 c. Units wheeled [Form 1.9c] MU AA 15.640 15.64 15.64 Additional units allowed for wheeling MU AB 1.360 1.36 1.36

d. Units utilized in own premises including construction power MU AC 46.000 48 50 e. Unutilized Units MU AD 5339.979 5874.424 6453.862 Total Energy MU sum(Y:AD) 30521.979 33565.744 36873.262


CHAPTER – 5

FIXED CHARGES


5.1 The analysis of the fixed charges projected by WBSEDCL for the ensuing years

of fourth control period under the Multi Year Tariff (MYT) application under

different heads of accounts has been taken up in this chapter.

5.2 WBSEDCL has projected the gross fixed charges, income from different non-

tariff sources and different income from other heads for the ensuing years 2014-

15, 2015-16 and 2016-17.

5.3 While determining fixed charges on different heads for WBSEDCL for the fourth

control period (2014-15, 2015-16 & 2016-17) the following considerations have

taken place:

5.3.1 WBSEDCL has projected inflation rate of 10.09% on the basis of actual inflation

rate for the month of October 2013. Commission finds no merit in considering the

inflation rate of one month only for projection purpose when such projection will

be applicable for thirty six months. In addition some of the objectors has also

objected such high rate of inflation citing examples of WPI based lower rate of

inflation as applied by different State Electricity Regulatory Commissions.

Commission instead of considering the inflation rate of 10.09% in general for

projection purpose decides to proceed in a further rational manner by following a

methodology that has been applied for all distribution licensees subject to case

specific differences in some cases to protect the interest of consumers as far as

possible after meeting the requirement of reasonable tariff determination to

provide end of justice to all concerned stakeholders as deemed fit by the

Commission. Moreover by the time of processing the tariff application by

Commission the inflationary trend shows downward direction. Due to the above

fact and views of different stakeholders on this inflationary rate, Commission



decides to determine projected inflation rate and the resultant escalation rate in

view of such inflation rate as detailed out in subsequent paragraphs.

Commission observed that Central Electricity Regulatory Commission based on

a hybrid index of WPI (Wholesale Price Index) & CPI (Consumer Price Index)

has observed an annual inflation trend of 8.35 % while fixing the norms of O&M

expenses in Central Electricity Regulatory Commission (Terms and Conditions of

Tariff) Regulations, 2014 (hereinafter refer to as ‘CERC Tariff Regulations’) for

central sector utilities for the period 2014-2019. This inflation trend of 8.35 % is

computed based on five year average of WPI and CPI indices for FY 2008-09 to

FY 2012-13 considering 60% and 40% weightage on WPI and CPI respectively.

However, while fixing norms of O&M cost (which includes employee cost also)

the annual escalation rate on O&M expenses during the period 2014-2019 has

been considered as 3.32% for A.C. transmission system as per the statement of

reasons of the CERC Tariff Regulations for the said period. This 3.32% is the

110% of the actual Compounded Annual Growth Rate (CAGR) (3.02%) of O&M

expenses for A.C. transmission system during the period 2008-09 to 2012-13

computed on the basis of 70% weightage on actual O&M cost of per bay of sub-

station and 30% weightage on actual O&M cost of per CKM transmission line.

Taking the above mentioned principle adopted by CERC as a guideline

Commission also decides to find out a reasonable annual escalation rate for

WBSEDCL for all sub-heads of O&M expenses for distribution function, rates &

Taxes, insurances, expenses for complaint management mechanism and

different types of Outsourcing Costs for distribution function with certain deviation

based on certain reasons as explained below:

a) The control period is of three years and as more than 6 months of 2014 has

already passed thus the inflation trend between October 2011 and

September 2014 has been computed where weightage has been given to



WPI & CPI at the ratio of 60:40 in line with the norms fixation methodology

under CERC Tariff Regulations. This is being done in order to capture the

realistic trend of 2014-15 as far as possible so that projection for fourth

control period can have better accuracy. Accordingly based on the WPI

numbers and CPI numbers as available in the website of Economic Advisor

of GOI for WPI and Labour Bureau of GOI for CPI the computed inflation

trend for the above 36 months are given in the following table 5.3.1-I:

Table- 5.3.1-I TREND OF INFLATION RATE FOR THE PERIOD OCTOBER 2011 TO

SEPTEMBER 2014 Average inflation rate as per WPI from October 2011 to September 2014= 6.62 Average inflation rate as per CPI from October 2011 to September 2014= 9.15

Average inflation rate as per WPI + CPI (60:40) from October 2011 to September 2014= 7.63

Note : For detail data Annexure – 5A may be seen

b) Different sub heads under O&M expenses, Expenses for outsourcing (limited

to manpower and vehicle hiring cost), Expenses for outsourcing ( except

manpower and vehicle hiring cost), and expense head for complaint

management mechanism, insurance and rates & taxes are effected by

inflationary trend but at different degrees depending on the characteristics of

such head or sub-head. In this context two recognized inflationary trends

used in the country are WPI index and CPI index. Along with these two types

of inflationary rate for power sector another third type inflationary rate used by

the Commission is based on hybrid index (WPI+CPI) as explained in

paragraph (a) above. In table-2 in Annexure-5B the basis of inflationary rate

considered for such heads and sub-heads of expenditure are given. In this

context Commission has decided to consider number of elements of fixed

charges to be sensitive to CPI index based inflationary rate instead of hybrid

(WPI+CPI) index in line with CERC norms fixation as explained above on the



ground that those heads/ subheads of any distribution licensee are heavily

burdened with employee wages/ allowances and benefits. However for lease

rental line such sensitivity is considered with WPI index. In this context it is to

be noted that all these heads of expenditure are treated as heads under O&M

function of CERC Tariff Regulations. Accordingly the above inflation rate as

given in the table above are used for applicability in giving escalation rate in

2014-15, 2015-16 & 2016-17 with respect to the previous years’ admitted

expenditure to find out the admitted expenditure of the referred heads in

those years. Thus the inflation rate considered for tariff computation are as

per the following table 5.3.1- II:

Table 5.3.1-II

INFLATION TRENDS

Financial Years CPI WPI

Combined WPI & CPI (60 : 40)

Remarks

2010-11 10.53 9.57 9.96 Actual 2011-12 8.42 8.96 8.74 Actual 2012-13 10.43 7.36 8.59 Actual 2013-14 9.72 5.98 7.47 Actual

2014-15 6.81 4.78 5.59 As per 6 months

trend 2015-16 9.15 6.62 7.63 As per Table 5.3.1-I

& as explained above 2016-17 9.15 6.62 7.63

2011-12 to 2013-14 9.52 7.43 8.27 Averaged on annual basis 2010-11 to 2013-14 9.78 7.97 8.69

Note : For detail data Annexure – 5A may be seen

In 2014-15 as the trend is downward than the value under Table 5.3.1-II and

as the time already passed in 2014-15 has covered fifty percent of the year

thus such value has been considered with due insulation against uncertainty

wherever required through providing necessary certain additional float.



c) It has been observed that the actual data submitted by WBSEDCL is of

erratic nature on meter reading and bill distribution which are now under a

transition mechanism from manual billing to spot billing where meter reading

and bill distribution are done at the same instance resulting into lesser

transaction cost. Thus to capture the flavor of this transition period properly

and to have a better projection or estimation from 2013-14 to 2016-17, the

head of meter reading and bill distribution has been considered compositely.

Moreover under the outsourcing cost the data behavior of past records in

relation to line maintenance and substation maintenance are also to be found

more rational while they are considered in a composite manner. Thus for

projection or estimation of expenditure related to line maintenance and

substation maintenance under both controllable and uncontrollable

outsourcing head has been dealt in a composite manner for the period from

2013-14 to 2016-17.

d) For finding out the expenditure to be admitted by the Commission, the

estimated expenditures of 2013-14 submitted by WBSEDCL are scrutinized

by the Commission so that overestimated value can be rationalized to a

reasonable extent. This is being done as otherwise the existence of over

estimated expenditure for 2013-14 may result into higher admitted amount for

fourth control period as because the computation for projection of expenditure

for 2014-15 to 2016-17 are done by applying the annual escalation rate over

the estimated figure of 2013-14. On the estimated value as provided by

WBSEDCL for 2013-14 Commission finds that against some elements the

estimation of expenditure seems to be on extremely higher side. The

Commission cannot accept such over-estimation. In any year this deviation

can occur for any item of expenditure but it cannot be considered as a trend

for future projection. Such items of expenditure which are estimated on higher

sides have been dealt in the next paragraph. In fact for realistic projection for

2013 – 2014 the impact of business volume increase has been considered by



the Commission in a same way as has been considered in the tariff order.

Accordingly, the expenditure items which are sensitive to consumer strength

moderately the impact of business volume increase has been given as 2%.

Such impact has been considered as 1% where the expenditure of item is

sensitive to distribution line length. Accordingly, the Commission has done its

own estimation based on the Table-1 of Annexure – 5B by applying its

prudence which are explained below item wise:

i) The trend of actual expenditure on lease line head during the period

2010-11 to 2013-14 is very erratic. The value of 2010-11 and 2011-12

has not been considered for escalation rate determination for future as

this was the initial period when such lease line was under commissioning

and it is being found that expenditure pattern is not commensurating with

the progress of lease line facility. Thus the expenditure of 2012-13 has

been only considered as rational data reflecting the past trend of actual

expenditure in proportion to lease line asset strength. Regarding Lease

rental charges as estimated by WBSEDCL for 2013-14 is about 284%

higher than the audited actual value of Rs 1666 lakh in 2012-13. By 2012-

13 already the primary lease line for WBSEDCL’s communication network

has been completed. Thus the estimated expenditure in 2013-14 cannot

be so high and hence it is estimated by the Commission for 2013-14 after

imposing WPI based inflationary rate along with impact of additional

impact due to increase in establishments of WBSEDCL on the audited

expenditure of 2012-13 . Such additional impact due to increase in

establishments has been considered as 0.25% for each 1% increase in

distribution line length (DLL) in line with the trend in increase in expenses

in rent charges under Administrative & General Expenses. Accordingly

the expenditure for 2013 -14 for lease rental as estimated by the

Commission is Rs 1829.94 lakh.



ii) Expenses for complaint management mechanism is an expenditure

related to toll free telephone for ZCC, SMS charge to communicate with

mobile van, rental charges of IVRS system , separate telephone at

customer care centre for complaint management mechanism and anti-

theft toll free telephone charges. The whole system being now already

stabilized it will now be considered as a controllable item in the fourth

control period. WBSEDCL has not justified the reasons that why in 2013-

14 the estimated expenditure is 124% higher than the actual value of

2012-13. Commission finds no merits in such estimation. Thus the

estimated value for 2013-14 has been considered by giving an escalation

on actual value of 2012-13 due to impact in establishment of WBSEDCL

across the state during the period. Such additional impact due to increase

in establishments has been considered as 0.25% for each 1% increase in

distribution line length (DLL) in line with the trend in increase in expenses

in rent charges under Administrative & General Expenses. Accordingly

the expenditure for 2013 -14 complaint management mechanism as

estimated by the Commission is Rs 385.99 lakh. Impact of separate

inflationary trend for 2013-14 on this head has not been considered as in

telecom service such escalation rate is very insignificant as such sector is

still expanding at faster rate.

iii) WBSEDCL’s claim that service tax has increased presently due to

reverse charge and inclusion of more activities is not convincing to the

Commission at this stage as WBSEDCL cannot justify such claim by

providing detail of such activities and quantification of amount of reverse

charging for 2013-14. However during APR of WBSEDCL for 2013-14

and also for the years under fourth control period WBSEDCL shall come

with detail to establish their such claim. Thus under such scenario

estimation for Rates and taxes for 2013-14 has been done by taking the

average of actual annual expenditure on the same head for the period



2009-10 to 2012-13 as the actual expenditure in past shows high

variation. Accordingly the estimated value in the head of Rates & Taxes

for 2013-14 as computed by the Commission is Rs 1270 lakh.

iv) For Line and substation Maintenance (Excluding manpower) the annual

expenditure are found to have wide variation from year to year basis in

the period 2009-10 to 2012-13 and which seems to be gradually

stabilizing at the rear end of the said period. Thus sudden increase of

about 16.70% as estimated by WBSEDCL in 2013-14 over the

expenditure of 2012-13 is irrational as it is double the actual inflation of

7.48% for 2013-14. In such background Commission has estimated it by

taking admitted value on such head in the tariff order related to 2013-14.

Accordingly the estimated value of expenditure for line and substation

maintenance (excluding manpower) during 2013-14 as computed by the

Commission is Rs 3701.51 lakh which is considered to be sufficient in the

opinion of the Commission.

v) For Data Ware-housing the actual annual expenditure from 2009-10 to

2012-13 is within Rs 10 lakh except in 2012-13 when such expenditure

sharply increase to Rs 80 lakh. In absence of detail justification by

WBSEDCL along with supporting calculations the estimated expenditure

of Rs 93.36 lakh in 2013-14 with another increase of 16.70 % over the

expenditure of 2012-13 as done by WBSEDCL seems to be very high

specially (more than double of the inflation rate of 7.48% in 2013-14) in

the background of their recent initiatives in billing and other activity in

ERP (Enterprise Resource Planning) platform. In fact it is to be noted that

the sensitivity of Data Ware-housing very slightly depends on consumer

strength. In view of such assessment Commission has estimated the

expenditure on Data Ware-housing for 2013-14 by taking the same value

of Rs. 10.79 lakh which has been admitted in the tariff order for 2013-14.



vi) For estimation of expenditure on back office job head for 2013-14 an

increase of 16.70% has been considered by WBSEDCL without giving

any justification of such large increase which is more than double the

inflation rate of 7.48% . In view of projected large scale new employment

by WBSEDCL in regular establishment during the period 2013-14 to

2016-17 as shown in form 1.17(h) of tariff application for 4th

vii) The expenditure on the head of meter reading and bill distribution is

highly sensitive to consumer strength as the rate under the outsourcing

orders are per transaction basis. Inflationary trend is not applicable after

the contract is awarded. In case of new contract agreement the likely

increase is considered to be largely neutralized by advantage of scale of

economics due to increased consumer strength as well as the process of

such out-source activity which is becoming more organized and efficient

with the passage of time. Moreover as WBSEDCL is now passing through

the transition period of switching from manual meter reading and bill

distribution system to spot billing mechanism where in a single instance

both meter reading and handing over the bill to consumer is done to

reduce the transaction cost. This has also playing a major role in cost

control in this head. Thus accordingly the estimated expenditure of 2013-

14 has been computed by the commission by giving the escalation over

the actual expenditure on this composite head of 2012-13 at the same

increase rate of expenditure that is found in 2012-13 over 2011-12 for

increase in every 1% increase in consumer strength. Accordingly the

control period

and also after considering the impact of different IT initiatives of

WBSEDCL alongwith ongoing projects of ERP based activities the

requirement of back office job is not required to be increased further.

Accordingly the estimated value of back office job for 2013-14 has been

kept at the same level of 2012-13 by the commission.



estimated expenditure for 2013-14 on the head of meter reading and bill

distribution as done by the Commission is Rs.4832.10 lakh.

viii) The expenditure on the head of collection franchisee is highly sensitive to

consumer strength as the rate under the outsourcing orders are per

transaction basis. Inflationary trend is not applicable after the contract is

awarded. In case of new contract agreement the likely increase is

considered to be neutralized by advantage of scale of economics due to

increased consumer strength as well as the process of such out-source

activity which is becoming more organized and efficient with the passage

of time. Thus accordingly by giving the impact of increased consumer

strength of 2013-14 on expenditure of 2012-13 for the above two heads

Commission estimated the expenditure of 2013-14 for collection

franchisee as Rs 1154.44 lakh.

ix) The expenditure on the head of security is increasing fast from 2009-10 to

2012-13. Again an increase of 16.70% in 2013-14 seems to be high.

Moreover, detail scrutiny of such expenses is required by this

Commission. At present the average of actual expenditure of 2011-12

and 2012-13 i.e., Rs 3042.37 lakh has been considered as estimated

expenditure of 2013-14 by the Commission. During truing up in APR

WBSEDCL shall come up with all relevant information and documents to

justify their claim of so high amount of expenditure on security head.

x) For MCSU service, Call center service as per SOP regulation the

estimate of WBSEDCL in 2013-14 seems to be high at the rate of 16.70%

but it has not been changed as Commission is of the opinion that as

those activities has been fully roll down during the third control period

thus at that initial stage the expenditure growth rate was high. But

beyond 2013-14 such escalation rate shall reduced in the fourth control

period. Thus, as estimated by WBSEDCL, the expenditure in 2013 –



2014 has been accepted but beyond 2013 – 2014 for different ensuing

years growth rate will be reduced as dealt in subsequent paragraph. For

2013-14 the estimated repair and maintenance expenditure has been

accepted by the Commission in order to provide a starting base of fourth

control period with a flip so that WBSEDCL can gradually control its

expenditure in fourth control period with a lesser escalation target than

that of the estimated one in 2013-14.

xi) For insurance charges WBSEDCL has not explained that why the

estimated expenditure of Rs 801 lakh during 2013-14 have a high

escalated rate of 216% over the amount of Rs 370 lakh in 2012-13. It has

not also explained that again why in 2014-15 the projection by WBSEDCL

shows a decrease in expenditure on insurance head to an amount of Rs

672 lakh. The commission has noted the above irrationality and thus does

not rely on the expenditure of base year of 2013-14 as estimated by

WBSEDCL and consider the projected value of 2014-15 as also the

estimate value of 2013-14.

e) Where the past CAGR of expenditure of any above referred elements for the

third control period (2011-12 to 2013-14) is lesser than the concerned

inflation rate as provided in table 5.3.1-I in such case in line with CERC’s

principle 110% (an additional 10% margin over actual growth rate) of such

growth rate is considered as the annual escalation rate for 2014-15 to 2016-

17 for the following reasons:

i) to ensure the interest of stakeholders in a more better way from the point

of view of availability considerations of the network asset and different

services;



ii) to provide a comfort to WBSEDCL in carrying out O&M of the assets by

extending an additional insulation against uncertainty arising out of

increased expenditure for any unforeseen reason.

It is to be noted that for the said period the expenditure considered for 2013-

14 is estimated one made by the commission and for 2011-12 & 2012-13

actual expenditure has been taken. In certain cases the CAGR for larger

period is also considered where Commission finds that such decision will

provide more rational and better accuracy in the projected admitted cost.

f) Where the projected expenses by WBSEDCL are less than the estimated

value of 2013-14 and also the actual value of 2012-13 in such case no

escalation is being allowed for fourth control period because WBSEDCL’s

projection is considered as admitted figure.

g) Where the past data show irrational/asymmetric character in such case

Commission by applying due prudence take an appropriate escalation rate

which is discussed in relevant portions.

h) Where annual escalation rate or CAGR of past period crosses the concerned

inflation rate of the said past period in such case escalation rate for projected

expenditure due to business volume increase is computed from past trend by

reducing it with the concerned inflation rate of the relevant past period and

that has been explained in the relevant portions. In such case the annual

escalation rate for 2014-15, 2015-16 and 2016-17 are as follows:

Annual Escalation Rate (%) for any ensuing year = A+ R × BGR+Ad_F

Where A = Inflation rate (%) based on CPI or WPI or hybrid

(WPI+CPI) index as applicable for the fixed

charge element.



R = Ratio of percentage annual increase in

expenses in the past period and percentage

increase in business volume parameter during

the same period.

BGR = Projected growth rate (%) for the ensuing year

of the business volume parameter to which the

fixed charge element under consideration is

sensitive.

Ad_F = Additional float in % as decided by commission

to provide insulation against uncertainty in

projected inflation or business volume growth.

For such annual escalation rate calculation the annual increase (%) in

expenses as required for calculation of R is decided by commission by taking

the lowest positive CAGR value from among CAGR of 2013-14 (i.e., annual

increase rate) or CAGR of 2011-12 to 2013-14 or CAGR of 2010-11 to 2013-

14 subject to different aspects considering rationality or level of asymmetric

character of past data as has been explained in the relevant portion. However

principally wherever R on computation found to be higher than one then in

such case R is considered not more than 1 as Commission is of the opinion

that rate of increase in expenses due to business volume increase cannot

surpass the rate of increase in business volume parameter unless there is

any specific reason which can be established by the licensee. Similarly when

R is found to be a value between 0.5 and 1 then also in ensuing year annual

escalation rate is further reduced by a small quantum with an objective of

gradual improvement in efficiency of the licensee in expenditure control by

utilizing different resources in a more effective manner.



Where necessary while computing additional expenditure represented by

(R×BGR) of any element of fixed charge due to increase in business volume

that additional expenditure is modified in a reasonable and rational manner

after taking the impact of above mentioned sensitivity parameter on the

additional expenditure. Detail of such modification and any other specific

consideration are detailed out in relevant portion where each element of fixed

charge is dealt with. For controllable factor additional float of 0.5% is given to

cover any expenditure hike due to unforeseen reasons.

i) In line with the principle adopted in the tariff order of WBSEDCL for third

control period, Commission decides that for the ARR determination in the

tariff order of fourth control period the impact of increase in business volume

on different sub-heads/ heads will also be considered from the point of

sensitivity of the head/sub-heads to certain business volume parameter. For

such purpose in the business process of WBSEDL there are two important

business volume parameters such as Distribution line length (DDL) in Circuit

Kilometer (CKM) and Consumer strength. Different elements of fixed charge

elements are sensitive to either of the above two parameters and where such

element is sensitive to consumer strength there is variation in the degree of

such sensitivity. After applying such degree of sensitivity the number of

business parameters considered in this tariff order are Distribution Line

Length (DLL), Consumer Strength in moderate degree (CSM), Consumer

Strength in high degree (CSH) and Consumer strength with lesser degree

than CSM (CSM-L). The table 1 under Annexure 5B shows the concerned

business volume parameter sensitivity against different elements of the fixed

charges.

j) WBSEDL has projected consumer strength annually and its annual growth

rate for 2014-15, 2015-16 and 2016-17. But for distribution line length they

have projected annual growth rate of 14.57% during the same period without



giving the absolute value. Accordingly for the purpose of this tariff order the

target business parameters for 4th

Table 5.3.1- III

control period along with the estimated

value of 2013-14 are as follows:

Particulars 2013-14 2014-15 2015-16 2016-17 Consumer Strength (no.) 12855266 13940250 15064240 16240567 Increase(%) in Consumer strength 6.30 8.44 8.06 7.81 Distribution line length in CKM 467924.17 536100.72 614210.59 703701.07

Increase(%) in line length 14.57 14.57 14.57 14.57

In pursuance to regulation 8.1 of the Tariff Regulations while projecting the

above figure following considerations have been taken:

• As the original tariff application is submitted at the end of 2013-14 thus it

can be considered that the estimated data for 2013-14 will have high

degree of accuracy.

• The value related to 2013-14 on consumer parameters are estimated by

using the relevant audited data of 2012-13 and projected data of such

parameters for 2014-15 by WBSEDCL in their tariff application.

• The value related to 2013-14 on distribution line length parameters are

estimated by using the projected growth rate of 14.57% over the audited

data of 2012-13.

• The value of projected consumer strength of 2014-15 to 2016-17 has

been taken from Form 2.2 of the Annexure -2, i.e., Volume III of tariff

application.



• The value 8.44% of increase in consumer strength for 2014-15 has been

taken from paragraph 5.8(c) of the tariff proposal in page 61 of Volume-I.

During truing up in Annual Performance Review (APR) of the above ensuing

years of 2014-15 to 2016-17 such projected distribution line length in CKM

and Consumer Strength in number as given in table 5.3.1-III shall be

considered as the basis against which the expenditure has been admitted

during concerned tariff order and accordingly truing up will be taken up

subject to the conditions as mentioned in paragraph 5.3.7.

k) For computation of computed expenditure by the Commission on different

heads for 2014-15 to 2016-17 the base expenditure over which the above

escalation rates are applied has been considered on the estimated

expenditure of 2013-14 made by WBSEDCL and duly modified in some

elements by the Commission as explained in paragraph (h) above. This is

being done as the application of tariff is submitted at the end of 2013-14 and

is likely to have little inaccuracy with respect to actual expenditure.

l) Based on the above principle the projected expenditure on above mentioned

different elements of fixed charges for 2014-15, 2015-16 and 2016-17 has

been computed and then compared with the claimed amount of WBSEDCL

for the said year and whichever is lowest is being admitted in this tariff-order.

m) However for recent past the distribution loss and AT& C losses are

increasing as shown below:

PERFORMANCE TREND OF WBSEDCL PARAMETERS UNIT 2010-11 2011-12 $ 2012-13 $ Distribution loss in % % 25.24 24.88 25.40 AT & C loss in % % 28.01 28.49 31.56 $ As per submitted data to CEA by WBSEDCL



After analyzing the performance of different licensees Commission feels that

WBSEDCL is required to improve their performance in overall sense where

losses due to technical reasons cannot be a major issue as for the last few

years since inception of APDRP capacitor bank projects and feeder

rationalization initiatives lot of technical intervention has been done through

the above and RADPRP projects to reduce the technical losses. In the

background of such initiatives it is natural that WBSEDCL must have take

adequate technical measures in rural electrification programme also to keep

the technical losses within a reasonable limit so that normative target of

WBSEDCL ‘s distribution loss could be achieved. For the last few years the

Commission has approved expenditure with high rate of increase but without

any tangible gain as seen from the last few years distribution and AT&C

losses.

WBSEDCL shall be aware of this situation and take appropriate measures to

contain the future retail tariff at reasonable rate. However in this tariff order

after analyzing the different escalation rate computed for activities which has

direct impact on distribution & AT&C loss such as repair maintenance

related controllable heads like the heads of repair & maintenance , line and

substation maintenance (except manpower & vehicle hiring cost)) , and meter

reading and bill distribution function it is found that the computed escalation

rate by WBSEDCL is at sub-inflationary level and of meager escalation rate

then Commission provides an additional float to provide an comfort to

WBSEDCL to ensure reduction of distribution losses and AT&C losses.

WBSEDCL shall also take into notice that in future such type of comfort may

further not be extended as simultaneous increase in distribution loss / AT & C

loss as well as continuous increase in expenditure in repair maintenance

related heads is to be treated as unnecessary pampering of inefficient

performance of WBSEDCL.



5.3.2 Operation and Maintenance (O&M) Expenses : As per regulation 5.7 of the Tariff Regulation the components of Operation and

Maintenance (O&M) expense are as follows:

i) Repair & Maintenance Expenses (R & M)

ii) Administrative and General Expenses which are composed of followings

- Rent and lease charges

- Legal charges

- Auditor’s expenses, which include auditor’s fees, auditor’s expenses and

payment to auditors in any other capacity or for any work which is

necessary to be got done from them and audited.

- Consultancy charges for work which cannot be done in-house or is

uneconomical in doing in-house or is essential to be done from outside

sources except payment to Auditors.

- Other expenses necessary and arising from and ancillary or incidental to

the business of electricity except penalty etc. levied under this Act or any

other Act.

5.3.2.1 Operation and maintenance (O&M) Expenses for generation:

After analyzing the tariff application of WBSEDCL for the period from 2014-15 to

2016-17, while determining O&M expenses, the Commission has allowed O&M

expenses for generation in accordance with the norms specified in Schedule 9A

of the Tariff Regulations. Accordingly the admitted value for O&M expenses for

generation function is Rs. 4270.75 lakh, Rs. 4486.44 Lakh and Rs. 4707.65

lakh respectively and detail computation are given below:

Rs. in Lakh

Stations Installed capacity in MW

O&M Cost per MW as Tariff Regulations Admitted O&M cost

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 Rammam HEP 51 9.69 10.17 10.68 494.19 518.67 544.68 Jaldhaka HEP 44 13.94 14.64 15.37 613.36 644.16 676.28 PPSP 900 2.15 2.26 2.37 1935.00 2034.00 2133.00 Small Hydro 89 13.80 14.49 15.21 1228.20 1289.61 1353.69 Total 4270.75 4486.44 4707.65



5.3.3 O&M Expenses for Distribution: Based on the laid down principle in paragraph

5.3.1 above following different sub-heads of O&M function in distribution are

determined. In this context tables in Annexure – 5B may be referred to for the

past trend of expenditure.

a) Repair & Maintenance (R&M) Expenditure and Rent : For both these

elements, the past escalation rate is CAGR of 2011-12 to 2013-14 is

considered as it provides the latest trend of two years and is better than

depending on one year value. Such rate is found to be higher than the

average inflation rate for the above period. Then by using such escalation

rate in the methodology as mentioned in sub-paragraph (h), (k) and (l) of

Paragraph 5.3.1 the values found for ensuing years of 2014-15 to 2016-17

are given in Table 5.3.3-I. While applying the methodology under sub-

paragraph (h) of Paragraph 5.3.1 the additional float is considered as 0.5% in

order to provide insulation against uncertainty in any expenditure hike due to

any unforeseen reasons and also to cover the logic for additional margin as

mentioned in sub-paragraph (e) of paragraph 5.3.1.

b) Audit fees and other administrative and General Expenses: For these

two elements the trend of escalation rate is CAGR of 2011-12 to 2013-14 and

such rate is found to be lower than the average inflation rate of the above

period. Thus by using such escalation rate in the methodology as mentioned

in sub-paragraph (e), (k) and (l) of Paragraph 5.3.1 the admitted values

found for ensuing years of 2014-15 to 2016-17 are given in Table 5.3.3-I.

c) Legal Charges: For this element the trend of escalation rate is CAGR of

2010-11 to 2013-14 in order to remove inflated escalated rate as it is noticed

that in 2011-12 the expenditure had gone down sharply after 2010-11 and

then again increased in 2012-13.Such escalation rate is found to be lower

than the average inflation rate of the above period. Thus by using such

escalation rate the methodology as mentioned in sub-paragraph (e), (k) and



(l) of Paragraph 5.3.1 the admitted values found for ensuing years of 2014-

15 to 2016-17 are given in Table 5.3.3 -I.

d) Thus the admitted expenditure under O&M expenses are as follows:

Table 5.3.3 -I (Rs. in lakh) Sl

No. Particulars As Claimed by WBSEDCL As Admitted by WBERC

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 1. R & M Charges 30288.56 36028.92 42758.06 27903 31310 35133 2. Rent 1175.78 1398.62 1659.83 1081 1208 1350 3. Auditor’s Fees 195.98 217.75 237.52 180 182 184 4. Legal charges 356.32 392.28 431.86 338 353 369 5. Other A&G expenses 12138.99 14183.69 16305.84 10988 11411 11850 6. A&G expenses (2+3+4+5) 13867.07 16190.34 18635.05 12587 13154 13753 7. O&M expenses (1+6) 44155.63 52219.26 61393.11 40490 44464 48886

Note : For detail calculation three tables under Annexure-5B may be seen

5.3.4 Some Small Expenditures: Some of the small items are uncontrollable in

nature till the third control period and thus they are all dealt under this paragraph

as discussed below:

a) Expenditure for Lease Rental Line: For this element the past escalation

trend has been taken from annual escalation rate of 2013-14 because lease

rental line is a new area of activity and thus rational actual data only available

is for 2012-13 and the data estimated by commission for 2013-14 are

expected to be reasonably rational. Such annual escalation rates for these

elements are found to be higher than the concerned average inflation rate of

2013-14. Then by using such escalation rate in the methodology as

mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the values

found for 2014-15 is further inflated by Rs 600 lakh to accommodate the

impact of second lease line as proposed for the non R-APDRP area and such

inflated value is considered as admitted value for 2014-15. The rental

charges for secondary lease line are considered conservatively. Then by

applying the same escalation rate on the admitted amount of preceding year

the admitted amount for 2015-16 and 2016-17 are determined by the

Commission which are given in Table 5.3.4-I. While applying the



methodology under sub-paragraph (h) of Paragraph 5.3.1 no additional float

is considered as the cost is uncontrollable one. Accordingly the admitted

amount for 2014-15 to 2016-17 has been found out and provided in the table

5.3.4-I. While submitting APR application the copies of the lease rental bill

that has been paid for primary and secondary lease lines are to be submitted

along with names of location that has been covered through lease line

records.

b) Expenditure for Complaint Management Mechanism: As Complaint

Management Mechanism is a new area of activity and data for 2011-12 to

2013-14 are available which basically covers the period of initial activity and

thus escalation rate for such period is high. As such mechanism is now

stabilized thus only rate of increase in expenditure for 2013-14 over 2012-13

has been considered as the escalation rate for future projection and which is

also found to be less than the inflation rate of the said period. Thus by using

such escalation rate in the methodology as mentioned in sub-paragraph (e),

(k) and (l) of Paragraph 5.3.1 the admitted values found for ensuing years of

2014-15 to 2016-17 are given in Table 5.3.4-I.

This element in fourth control period will be considered as controllable factor

as the character of such expenditure head is being already stabilized.

c) Expenditure for Rates and taxes: For this element the past escalation

trend has been taken from CAGR of 2010-11 to 2013-14 as it only reflects

positive escalation rate out of three period under consideration. Such rate is

found to be lower than the average inflation rate of the above period. Thus by

using such escalation rate in the methodology as mentioned in sub-

paragraph (e), (k) and (l) of Paragraph 5.3.1

d) Expenditure for Insurance : The past trend of annual escalation rate is

extremely high and in the submission of WBSEDCL no reason has been

the admitted values found for

ensuing years of 2014-15 to 2016-17 are given in Table 5.3.4-I.



mentioned that why the estimated expenditure of Rs 801 lakh during 2013-14

have a high escalated rate of 216% over the amount of Rs 370 lakh in 2012-

13. In fact in 2014-15 the projection by WBSEDCL shows a decrease in

expenditure to an amount of Rs 672 lakh. Commission feels that WBSEDCL

shall try to contain the expenditure on this heads gradually. Thus though the

projected expenditure of 2014-15 by WBSEDCL has been admitted by the

commission, but for 2015-16 and 2016-17 an escalation rate in moderate

form has been considered by taking R=0.25 while using the formula under

sub-paragraph (h) of paragraph 5.3.1 considering that additional expenses on

this element will increase by 0.25% for increase in 1% of distribution line

length in addition to normal inflationary rate. Accordingly the admitted amount

for 2014-15 to 2016-17 has been found out and provided in the table 5.3.4-I.

e) The admitted amount in the ensuing years of the fourth control period for the

above four uncontrollable expenditure in comparison to the claim of

WBSEDCL has been given in the table 5.3.4-I below:

Table- 5.3.4-I Sl

No. Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 1. Lease Rental Line 5604.15 6169.61 6792.12 2587 2856 3153 2. Complaint Management Mechanism 564.68 671.07 797.15 393 400 407 3. Rates & Taxes 3322.70 3878.90 4524.95 1388 1409 1484 4. Insurance 672.00 805.00 966.00 672 746 832

Note : For detail calculation three tables under Annexure- 5B may be seen

5.3.5 Outsourcing Expenditure (except manpower and vehicle hiring Cost): Under this head there are number of elements for which the expenditure for

2014-15 to 2016-17 has been computed by the Commission as detailed out

below:

a) Expenditure for Data Ware Housing and Franchisee Cost : For both

these elements the admitted expenditure is computed by the Commission by

applying the methodology of sub-paragraph (h) , (k) and (l) of paragraph



5.3.1 where the escalation rate considered for projection purpose for each

head are as follows:

• For data ware-housing the escalation rate considered for projection

purpose is the CAGR of 2011-12 to 2013-14 as it is found as only other

positive value and most rational in comparison to very high escalation

rate derived from larger period.

• For Franchisee cost the escalation rate considered for projection purpose

is the annual growth rate of 2013-14 as it is found the most rational in

comparison to very high escalation rate derived from the other two larger

periods. In this context it may be noted that projection of annual

escalation by about 19% in 2014-15 to 2016-17 is high in the view of

Commission especially in absence of any proper justification on this

ground.

However while using the formula under sub-paragraph (h) of paragraph 5.3.1

additional float is given by 0.5 % for data ware housing to provide insulation

to this controllable item against uncertainty of expenditure hike due to any

unforeseen reasons. but for franchisee cost the R has been taken as one as

explained earlier and no additional float has been given as R=1 itself has

inherent float as under any head cost cannot increase proportionately with

the increase in business volume. Thus the admitted amounts of these two

elements are given in Table 5.3.5-I.

b) Expenditure for Meter reading & bill distribution, Collection franchisee and Line & substation maintenance (excluding Manpower) : For all these

three elements the methodology followed for finding out the admitted

expenditure for 2014-15 to 2016-17 is as per sub-paragraph (e) , (k) and (l) of

paragraph 5.3.1 where the escalation rate for projection purpose has been

considered as detailed below:



• For Line & substation Maintenance (excluding Manpower) the escalation

rate for 2013-14 has been considered as those are the lowest of all other

corresponding past periods and found to be giving a rational result which

is compatible to the latest trend specially in the background of quite

comfortable figure of estimated value of base year of 2013-14. For the

earlier period of 2010-11 to 2013-14 the escalation rate is negative and

thus ruled out. The earlier period of 2011-12 to 2013-14 has not been

considered as to the Commission’s opinion the estimated value of 2013-

14 itself has sufficient float as that part is liberally assessed. However in

line with principle as laid down in paragraph sub-paragraph (m) of

paragraph 5.3.1 an additional float is considered to give the overall

escalation rate as a 2%.

• For collection franchisee the escalation rate for 2013-14 has been

considered as those are the lowest of all other corresponding past

periods and found to be giving a rational result in comparison to very

high escalation rate found for the larger period. In this context it may be

noted that projection of annual escalation by about 19% in 2014-15 to

2016-17 is high in the view of Commission specially in absence of any

proper justification in this ground.

• For Meter Reading and bill distribution the annual escalation rate of 2013-

14 is being considered as it is the lowest value and there is advantage of

gradual expansion of spot – billing and reduction in transaction cost is

expected as detailed in paragraph 5.3.1 (d) (vii) above. However in line

with principle as laid down in paragraph sub-paragraph (m) of paragraph

5.3.1 an additional float is considered to give the overall escalation rate

as at 3% for 2014-15, 4% for 2015-16 and 5% for 2016-17.



Accordingly the admitted amounts of these four elements are given in Table

5.3.5-I.

c) Expenditure for Back office job: For this elements escalation rate has been

considered as the projected inflation rate only for the concerned period as in

the past the growth rate are extremely high compared to the estimated one of

2013-14 which is nil. In both these cases other methods are followed to get a

reasonable expenditure which can be admitted by the Commission. In this

method only the projected inflation rate of 2014 – 2015, 2015 – 2016 and

2016 – 2017 has been applied over the estimated expenditure of 2013 –

2014, 2014 – 2015 and 2015 – 2016 respectively. Accordingly the admitted

amounts of this element has been computed by applying sub-paragraph (k)

and (l) of paragraph 5.3.1 and such admitted amount for the ensuing years of

fourth control period are given in Table 5.3.5-I.

d) Based on the above discussion the admitted amount for all the ensuing years

of fourth control period against the claimed amount are given below:

Table- 5.3.5-I (Rs. in lakh) Expenditure on Outsourcing Cost (excluding manpower and vehicle hiring cost)

Sl No.

Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17

1. Line Maintenance Sub-station Maintenance (Excluding Manpower)

5691.39 6700.03 8034.47 3776 3852 3929

2. Data Ware-housing 111.45 132.57 157.33 12 13 14 3. Back office Job 402.81 479.15 568.64 305 328 353 4. Franchisee Cost 636.66 757.32 898.77 615 721 843

5. Meter Reading & Bill Distribution 6596.46 7846.64 9312.16 4977 5176 5435

6. Collection Franchisee 1512.94 1799.67 2135.80 1234 1320 1411 7. Total (Sum of 1to 6) 14951.71 17785.38 21107.17 10919 11410 11985

Note : For detail calculation please see three tables under Annexure- 5B may be seen



5.3.6 Outsourcing Expenditure (manpower and vehicle hiring Cost): Under this

head there are four number of elements for which the expenditure for 2014-15 to

2016-17 have been computed by the Commission based on the methodology as

mentioned under sub-paragraph (h), (k) and (l) of paragraph 5.3.1 because in all

these cases the escalation rate based on past trend is found to be higher than

the concerned inflation rate. The escalation rates alongwith past period

considered for such computation are as follows:

• For the item Manpower for line & sub-station maintenance the escalation

rate for expenditure determination of the period from 2014-15 to 2016-17 is

the annual escalation rate of 2013-14. The escalation rate of only one year

instead of a larger period is not considered as that would have given higher

escalation rate which would have not been compatible with the present

scenario of increasing involvement of outsourcing where escalation rate is

reducing due to advantage of scale of economics.

• For the item Security expenses, Call Centre (as per SOP Regulations)

expenses and Mobile Service (MCSU as per SOP Regulations) expenses

the escalation rate for expenditure determination of the period from 2014-15

to 2016-17 is the CAGR of the expenditure against the corresponding

element during the period of 2011-12 to 2013-14. This period is considered

as it gives the lowest escalation rate which is reasonable in view of the fact

that all the three services are now almost stabilized.

In the above methodology no additional float has been given in line with the

decision for other uncontrollable expenditure as discussed in sub-paragraph (a)

of paragraph 5.3.5. Based on the above discussion the admitted amount for all

the ensuing years of fourth control period against the claimed amount are given

in the following Table 5.3.6-I.



Table- 5.3.6-I (Rs. in lakh) Expenditure on Outsourcing Cost (manpower and vehicle hiring cost)

Sl No. Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17

1. Manpower for Line Maintenance and substation maintenance

9824.49 12086.45 15043.84 8553 9685 10966

2. Security Expenses 5408.71 6738.26 8296.77 3365 3800 4292

3. Call Center (ZCC/CRC) as per SOP Regulation 2162.14 2871.91 3708.30 2011 2276 2573

4. Mobile Service (MCSU as per SOP Regulation) 3050.10 3928.16 5048.33 2591 2907 3259

6. Total(1+2+3+4+5) 20445.44 25624.78 32097.24 16520 18668 21090 Note : For detail calculation please see three tables under Annexure- 5B may be seen

5.3.7 It is to be noted that the estimated expenditure those are only determined by the

Commission for 2013-14 against any head or subheads as discussed above in

sub paragraph (i) to (ix) of paragraph 5.3.1(d) has been considered as base year

expenditure for those heads for tariff determination purpose. In case any of such

estimated expenditure made by the commission is found to be less than the

audited actual expenditure for 2013-14 vis-à-vis business volume parameter

increases then the consequential impact on the projected expenditure against

concerned heads/sub-heads for the period 2014-15 to 2016-17 will be passed

through tariff in APR of concerned year separately irrespective of whether such

item is controllable factor or uncontrollable factor. During truing up exercise in

APR of the concerned year the estimated expenditure of all the elements of

different heads as mentioned in paragraph 5.3.1 (d) above for 2013-14 are to be

considered as has been incurred against the actual value of the business volume

parameter (i.e., DLL and consumer strength) that has been achieved at the end

of 2013-14. In case the actual value of DLL or consumer strength in 2013-14 is

found to be higher than the estimated value that has been considered for 2013-

14 in this tariff order then impact of such enhanced amount will be added to the

projected value of DLL or Consumer strength for the period 2014-15 to 2016-17



of the tariff order to find out the target business volume parameter against the

projected expenditure that has been admitted in the tariff order. On the basis of

such revised targeted business volume parameter the truing up exercise in APR

will be done specially while applying the regulation 2.6.10(v) of the Tariff

Regulations.

5.4 Employee Cost:

5.4.1 WBSEDCL has projected the employee cost for 2014 – 2015, 2015 – 2016

and 2016 – 2017 as Rs. 120934.34 lakh, Rs.136644.24 lakh and

Rs.154477.65 lakh respectively. On this projected cost the Commission has

also noted the following submissions of WBSEDCL.

a) To cope up with the rapid growth in consumer strength mostly in rural

area due to i) RGGVY program, R-APDRP Part A and Part B scheme,

segregation of lines and construction of new sub-stations under system

improvement schemes, ii) removal of entry level barrier by introduction of

easy new service connection procedures for the L&MV consumers and

due to increase in capacity to disperse large number of application of

new consumers, WBSEDCL is to maintain a certain level of employees

in the ensuing years and for this WBSEDCL requires to recruit new

employees in 2014 – 2015, 2015 – 2016 and 2016 – 2017.

b) Due to demographic and geographic consideration, WBSEDCL is to

maintain a certain minimum level of employees to provide service to its

consumers.

c) Increase in Dearness Allowance (DA) has been considered by

WBSEDCL at 12% on average basis for all the years under the control

period. Normal increase @ 3% in basic and grade pay due to increment,

promotion and other staff benefits as per trend for the ensuing years

2014 – 2015, 2015 – 2016 and 2016 – 2017 has also been considered.



d) Salary impact of new entrants.

e) Terminal benefits.

f) The general inflation rate has been considered @ 10.9% as per

October, 2013 Consumer Price Index (CPI) as published by Reserve

Bank of India (RBI) for all the years under the fourth control period.

5.4.2 The total number of employees in WBSEDCL during 2012 – 2013 was 16837.

The number of employees as projected by WBSEDCL for the years 2013-14,

2014-15, 2015-16 and 2016-17 in Form 1.17 (h) to Annexure – 1 are 16837,

18570, 22125 and 22125 respectively. Thus, WBSEDCL has not considered

any increase in number of employees during the year 2013 – 2014 and 2016-

17. WBSEDCL has considered an increase in number of employees in the

year 2014-15 and 2015-16 @ 10.29 % and 19.% respectively. WBSEDCL has

not, however, given any justification against such high increase in number of

employees during those years as mentioned above. Thus, the increases in

projected number of employees at a level of 10.29% and 19.14% for the years

2014-15 and 2015-16 are not acceptable to the Commission. The

Commission, therefore, does not consider increase in number of employees

as projected by WBSEDCL but considers a hike of 2.11% (0.25% for each 1%

increase in number of consumer as projected for 2014-15) in employee cost

annually for the years 2013 – 2014 to 2016 – 2017 against the projected

increase in business volume while estimating the employee cost for the

ensuing year in subsequent paragraphs.

5.4.3 The Commission now analyzes the impact of normal increment and increase

in DA in employee cost for the respective years. The total amount of employee

cost including Directors’ remuneration as projected by WBSEDCL for the

years 2014-15, 2015-16 and 2016-17 at Rs. 120934.34 lakh, Rs. 136644.24

lakh and Rs 154477.65 lakh respectively are net of capitalization and inclusive



of terminal benefits of Rs 34785.50 lakh, Rs 37629.45 lakh and Rs 43072.49

lakh payable to terminal benefit fund for the respective three years. As stated,

the element of DA has been estimated considering average rate of DA at

108% for 2014-15, 118% for 2015-2016 and 128% for 2016-17 respectively for

the fourth control period.

5.4.4 The employee cost including terminal benefits and Directors’ emoluments and

net of capitalization has been shown in the annual report and accounts for

2012-13 as Rs. 96125 lakh. WBSEDCL has estimated the employee cost for

2013 – 2014 as Rs. 109001.98 lakh, which is 13.4% higher than that of actual

expense for 2012-13. The latest five DA (Dearness Allowance) increase in

Central Government during 01.07.2012 to 01.07.2014 is 7%, 8%, 10%, 10%

and 7%. Considering the impact of two instalments each at 10% of basic pay

and annual increment @ 3% on basic pay, the annual increase in employee

cost comes to 10.80% [{(3x8% + 6x18% + 3x28% + 12x3%) / 12} x 1/2} +

(3%x1/2x0.2)] [basic pay in the salary is 50% considering existing DA @ 80%

of basic pay and HRA @ 20% of basic pay in the salary] for the year 2013-14

over the employee cost incurred during the year 2012-13. The Commission

considers the increase in employee cost during 2013 – 2014 @ 12.91%

(10.80% for D.A. increase + 2.11% for increased consumer strength) over the

actual employee cost of 2012-13 to arrive at the employee cost for 2013-14

and the same is worked out at Rs 108534.74 lakh. The last D.A. increase

announced by the Central Government w.e.f. 01.07.2014 is 7%. Considering

the impact of D.A. instalments @ 10% w.e.f. 01.01.2014 and @ 7% w.e.f.

01.07.2014 and considering the half yearly D.A. increase @ 7% in future and

annual increment @ 3% on basic pay, annual increase in employee cost for

the year 2014 – 2015 comes at 9.07% [{(3x10% + 6x17% + 3x24% + 12x3%) /

12} x 1/2.27} + (3%x1/2.27x0.2)] (basic pay in the salary is 1/2.27 considering

the D.A. @ 107% of basic pay and HRA @ 20% of basic pay in salary) over

the estimated employee cost for 2013-14. The Commission, thus, considers



the increase in employee cost for the year 2014-15 over the estimated

employee cost for 2013-14 @ 11.18% (9.07% + 2.11% for increased

consumer strength). The estimated employee cost for the year 2014 – 2015,

thus works out at Rs. 120668.92 lakh. The Commission admits Rs. 120668.92

lakh as employee cost for the year 2014-15. The Commission considers an

annual increase in employee cost @ 11.18% and admits Rs 134159.71 lakh

and Rs. 149158.77 lakh for the years 2015 – 2016 and 2016 – 2017

respectively.

5.4.5 The function wise break up as well as in total of employee cost including

terminal benefits as admitted by the Commission for the years 2014-15, 2015-

16 and 2016-17 are as follows:

Rupees in lakh Employee Cost

Type of Cost 2014-15 2015-16 2016-17 Generation Distribution Total Generation Distribution Total Generation Distribution Total

Salary and Wages including other staff welfare benefits

2849.44 83110.33 85959.77 3226.11 92343.96 95570.07 3736.00 102518.81 106254.81

Terminal Benefit 1150.55 33558.60 34709.15 1302.65 37286.99 38589.64 1508.53 41395.43 42903.96

Total Employee cost 4000.00 116668.92 120668.92 4528.76 129630.95 134159.71 5244.53 143914.24 149158.77

Note; Employees cost is Including terminal benefit cost as shown in paragraph 5.4.3 The function wise allocation between generation and distribution is being done

on the basis of same proportion as has been done in the proposal of

WBSEDCL.

5.5 Depreciation:

WBSEDCL has projected depreciation for the years 2014 – 2015, 2015 – 2016

and 2016 – 2017 in terms of the Tariff Regulations. The depreciation projected

by WBSEDCL for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 are

Rs. 50301.00, Rs. 61371.00 lakh and Rs. 69042.00 lakh respectively.



WBSEDCL is directed to furnish the details of addition/ deletion of asset with

the opening value of the asset in APR of the respective year along with their

linkage with capital expenditure programme. The Commission will review the

depreciation on compliance of such directives during APR for the concerned

years. The depreciation admitted by the Commission as per the projection of

WBSEDCL for the years 2014-15, 2015-16 and 2016-17 are as follows: Rs. in lakh

Depreciation

Sl. No Particular Amount as Admitted 2014-15 2015-16 2016-17

1 Generation 9087.00 10223.00 11501.00 2 Distribution 35184.00 42651.00 47982.00 3 Metering Asset 5603.00 8016.00 9018.00 4 Other Assets 427.00 481.00 541.00 5 Sub-total (Distribution) 41214.00 51148.00 57541.00 Total 50301.00 61371.00 69042.00

5.6 Interest on Bonds for Terminal Benefits to Employees:

Under the West Bengal Power Sector Reforms Transfer Scheme, 2007, as

referred earlier, a 8.5% bond fund (2016) has been created for discharging

pension and gratuity liabilities of the erstwhile WBSEB. An amount of Rs.

1530.00 crores of the total bond amounts of Rs. 1800.00 crores has been kept

in the account of WBSEDCL. The annual interest charges on this amount of

bonds in the accounts of WBSEDCL come to Rs. 13005.00 lakh and the same

is admitted for ascertaining the Aggregate Revenue Requirement (ARR) for

the year 2014 – 15, 2015-16 and 2016-17. The said Rs. 13005 lakh has been

allocated as proposed by WBSEDCL between generating station and

distribution system as per following table.

Interest on bond related discharging pension & gratuity liabilities

Segment Admitted

2014-15 2015-16 2016-17 Gen. Dist. Gen. Dist. Gen. Dist.

Interest on bonds for Pension fund of 13005.00 1263.00 11742.00 1462.00 11543.00 1536.00 11469.00



5.7 Interest on borrowings:

5.7.1 WBSEDCL inherited an amount of Rs. 302200.00 lakh as borrowed capital as on

31st

5.7.2 WBSEDCL has projected interest on capital borrowings net of capitalization at

Rs. 49666.80 lakh, Rs. 66849.22 lakh and Rs. 76279.91 lakh for the years 2014

– 2015, 2015 – 2016 and 2016 – 2017 respectively. This interest amount is

however excludes the interest of Rs. 13005.00 lakh on pension bond of Rs.

153000.00 lakh.

March, 2006 as shown in Schedule – B of the West Bengal Power Sector

Reform Transfer Scheme, 2007 notified by the Government of West Bengal vide

No: 12-PO/III/3R-29/2006 dated 25.01.2007. Out of this amount of Rs.302200.00

lakh, Rs.194800.00 lakh was from the Government of West Bengal carrying

interest @ 8.5%. The balance amount of Rs.107400.00 lakh is from different

financial institutions and Central Government. WBSEDCL has also drawn fresh

loan for different capital works. WBSEDCL has submitted its projections of

repayment of borrowings, programmes for fresh borrowings as well as the

chargeable amount of interest to the revenue account after considering the

Capitalization of interest.

5.7.3 It is seen from the details of loans and interest thereon submitted in Form – C to

Annexure – 1 that the projected interest for the years 2014 – 2015, 2015 – 2016

and 2016 – 2017 includes interest on fresh loan drawn from Banks / FI during the

years 2013 – 2014, 2014 – 2015, 2015 – 2016 and 2016 – 2017 of Rs.

101743.00 lakh, Rs. 144185.00 lakh, Rs. 145963.00 lakh and Rs. 116346.00

lakh. The interest claimed on such loans for the years 2014 – 2015, 2015 – 2016

and 2016 – 2017 are Rs. 10430.00 lakh, Rs. 30891.00 lakh and Rs. 42251.00

lakh respectively. The amount of chargeable interest on capital borrowing as per

audited annual accounts for 2012 – 2013 was Rs. 39205.00 lakh. The

Commission admits the claim of WBSEDCL on interest on capital borrowings for

the years 2014 – 2015, 2015 – 2016 and 2016 – 2017, subject to the condition



that WBSEDCL shall furnish the details and purpose of the new loans with

supporting documents along with their APR applications for 2014 – 2015 and

onwards failing which no interest on such loans will be considered in future tariff.

5.7.4 The allocation of interest between generation and distribution has been done in

the same ratio as proposed by WBSEDCL based on the purpose of the loan and

its utilization.

Rs. in lakh Interest on Borrowing

Sl. No Particular Amount as Admitted

2014-15 2015-16 2016-17 1 Generation 15473.48 19638.46 21264.60 2 Distribution 34193.32 47210.76 55015.31 3 Total 49666.80 66849.22 76279.91

WBSEDCL is directed to submit the scheme wise details of the loan taken during

2013-14 and onwards in the APR for 2014-15 and onwards, as directed in

paragraph 5.7.3 of this order.

5.8 Other Finance Charges:

The estimation of other finance charges as submitted by WBSEDCL in specified

format 1.17(c) is for a total amount of Rs. 728.13 lakh for 2014-15, Rs. 753.98

lakh for 2015-16 and Rs. 786.11 lakh for 2016-17. The actual expense for 2012 –

2013 was 712.00 lakh. Considering the same the other finance charges

consisting of guarantee commission and Bank charges are admitted as proposed

by WBSEDCL. The cost allocations for distribution and generation function are

done in the same proportion as projected in the MYT application.

Rupees in Lakh Years Generation Distribution Total

2014-15 48.11 680.02 728.13 2015-16 50.79 703.19 753.98 2016-17 54.75 731.36 786.11



5.9 Bad Debts:

WBSEDCL has not projected any amount on the head of bad debts for any of the

ensuing year under the fourth control period. The Commission, thus, does not

consider any amount under the head bad debt for any ensuing year under the

fourth control period. In case of any bad debt actually written off in any year,

WBSEDCL shall claim the same as per provision of regulation 5.10.1 of the Tariff

Regulations in their APR application for the concerned year.

5.10 Minimum Alternate Tax

On Minimum Alternative Tax, the amounts claimed by WBSEDCL are admitted

subject to adjustment in APR as per the provision of Tariff Regulations.

WBSEDCL projected expenses for income tax at the level of Rs.823.90 Lakh,

Rs.906.26 Lakh and Rs. 996.92 Lakh for 2014-15, 2015-16 and 2016-17

respectively which are being admitted by the Commission as per provision of the

Tariff Regulations. The entire amount is allocated to distribution function.

5.11 Interest on Consumers’ Security Deposits

WBSEDCL has claimed towards interest on consumers’ security deposit of Rs.

7033.64 lakh for 2014-15, Rs. 7983.18 lakh for 2015-16 and Rs. 8845.36 lakh for

2016-17. The actual amount of interest accrued on consumers’ security deposit

during 2012 – 2013 as per audited annual accounts was Rs. 6271.00 lakh. In

view of the same, the projected value of interest on consumer security deposit for

2014 – 2015, 2015 – 2016 and 2016 – 2017 is admitted as Rs. 7034.00 lakh, Rs.

7983.00 lakh and Rs. 8845.00 lakh respectively after due rounding off. The entire

amount is allocated to distribution function.

5.12 Reserve for Unforeseen Exigencies

WBSEDCL has not claimed any amount under the head reserve for unforeseen

exigencies for the years in 2014-15, 2015-16 and 2016-17 and the Commission

also does not consider to allow any amount under this head.



WBSEDCL is, however, directed to maintain the funds lying with them as per

provision of the regulation 5.24 of the Tariff Regulations.

5.13 Interest on Working Capital:

WBSEDCL has stated that in accordance with the direction of the Commission,

the security deposit of the permanent consumers (excluding provision for security

deposit) during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has been

considered for utilization as working capital during the respective year and no

amount has been claimed against the head interest on working capital for the

ensuing years. The Commission also does not consider any amount under the

head for any ensuing year. The necessity of borrowing working capital, however,

cannot be ruled out. If any such borrowing is done for any of the years, the

interest on that will be considered for re-imbursement through APR for the

concerned year.

5.14 Return on equity

WBSEDCL has proposed normative return of Rs. 73999.00 lakh each year on

the average equity base of Rs. 354770 lakh for the years 2014 – 2015, 2015 –

2016 and 2016 – 2017. Such normative return has been asked for distribution

function only. While computing the normative return, WBSEDCL has considered

the return @ 20.88% on pre-tax basis.

WBSEDCL in their computation of equity base in Form 1.20(a) to Annexure – 1

has shown the admissible equity base at the beginning of the year 2014 – 2015

as 354474.00 lakh while the estimated admissible equity base at the end of the

year 2013 – 2014 is 290568.00 lakh. The Commission, in the process of

computation, has viewed the paid up share capital as on 31.03.2013 as per

audited annual accounts of WBSEDCL for 2012 – 2013 and the projected

addition to equity base vis-à-vis the projected addition to fixed assets during the

year 2013 – 2014. It is also seen from the annual accounts of 2012 – 2013 that



the closing balance net surplus at the end of 2012 – 2013 was (-) 16083.00 lakh.

Thus the addition to equity from surplus is not considered during 2013 – 2014. In

this process the Commission considers the closing admissible equity base of the

year 2013 – 2014 as well as the opening admissible equity base for 2014 – 2015

as Rs. 225674.00 lakh. WBSEDCL has not proposed for any equity addition

during the years 2014-15, 2015-16 and 2016-17. WBSEDCL has not also

proposed for utilization of free reserve for any asset creation during the ensuing

years. The Commission considers the opening equity base as Average Equity

Base for the respective years and allowed 16.5% return on the same in terms of

Tariff Regulations. The workings are shown in the following table:

Rupees in Lakh Sl. No. Particulars 2014-15 2015-16 2016-17

1 Actual equity base considered at the beginning of the year including free reserve 225674.00 225674.00 225674.00

2 Admissible equity base at the beginning of the year 225674.00 225674.00 225674.00 3 Addition to Equity base for the year 0 0 0 4 Actual Equity base at the end of the year [(1) + (3)] 225674.00 225674.00 225674.00

5 Net addition to fixed asset during the year {from 1.18(a)} of Annexure – 1 at Volume - IIB 235018.00 138743.00 90281.00

6 Normative addition to Equity base {30% of (5)} 70505.00 41623.00 27084.00 7 Addition to equity base considered for the year lower of (3) and (6) 0 0 0 8 Admissible equity base at the end of the year (2) + (7) 225674.00 225674.00 225674.00

9 Average admissible equity base to be considered for return {(2) + (8)}/2 225674.00 225674.00 225674.00

10 Rate of return considered 16.5% 16.5% 16.5% 11 Return on equity (ROE) 37236.21 37236.21 37236.21

The opening equity base of 2015-16 and 2016-17 will be subject to change

during the truing up in APR of the respective year and will be the closing balance

of the equity base in the APR of the preceding year of the particular respective

year.



5.15 Income from Non-Tariff Sources

The income from non-tariff sources comprising rental of meters and other

apparatus, delayed payment surcharges, interest from investment income etc. as

projected by WBSEDCL as Rs. 34399.42 lakh, Rs. 35306.48 lakh and Rs.

37035.86 lakh for 2014-15, 2015-16 and 2016-17 respectively which is admitted

by the Commission as it is found to be rational in consideration of the actual

income during 2012 – 2013.

5.16 Interest Credit

In terms of regulation 5.5.3 of the Tariff Regulations, WBSEDCL has proposed

Rs. 2009.00 lakh for 2014-15, Rs. 3183.44 lakh for 2015-16 and Rs. 3966.13

lakh for 2016-17 as interest credit to be refunded while determining the Net

Aggregate Revenue Requirement for the corresponding year in tariff as the

amount of chargeable depreciation is more than the amount of loan repayable for

those years. As the depreciation amount allowed in this order has been reduced

from the amount projected by WBSEDCL, thus the Commission computes the

amount afresh based on the depreciation allowed, the projected schedule of

repayment of loan and weighted average rate of interest of borrowings and

admits the same as shown below:

Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17

1. Depreciation Allowed 50301.00 61371.00 69042.00 2. Repayment as proposed 25126.00 26349.00 26395.00 3. Excess fund created 25175.00 35022.00 42647.00 4. Weighted average rate of interest of existing loan 9.2% 9.2% 9.2% 5. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52

In absence of any specific proposal from WBSEDCL and information about

break-up of repayment of the loan specific to generation and distribution, the

Commission decides to allocate the same in the proportion to depreciation



allowed to generation and distribution for respective years for both proposed and

admitted amounts as shown in the following table subject to final adjustment on

the basis of actual audited data in the APR for the concerned years.

Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17

1. Generation 418.41 536.72 653.58 2. Distribution System 1897.69 2685.30 3269.94

3. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52

5.17 Transmission charges payable to WBSETCL

WBSEDCL has asked for a provision for amounts of Rs. 112834.87 lakh in 2014-

15, Rs. 139700.17 lakh in 2015-16 and Rs. 145217.00 lakh in 2016-17 towards

transmission charges payable to the State Transmission Utility, i.e., West Bengal

State Electricity Transmission Company Ltd (WBSETCL) based on the tariff

application submitted by WBSETCL for the concerned year, the Commission has

finalized the amount of the Aggregate Revenue Requirement (comprising of all

its fixed charges) of WBSETCL and the same has come to Rs. 95537.89 lakh in

2014-15, Rs. 113879.69 lakh in 2015-16 and Rs. 117845.19 lakh in 2016-17. The

particulars will be available in the Commission’s order in Case No: TP-60/13-14

in regard to WBSETCL for the years 2014-15, 2015-16 and 2016-17. The

Commission accordingly allows a sum of Rs. 95537.89 lakh, Rs. 113879.69 lakh

and Rs. 117845.19 lakh payable by WBSEDCL to WBSETCL as transmission

charges in 2014-15, 2015-16 and 2016-17 respectively.

5.18 CTU Charges

The projection of WBSEDCL on CTU charges is Rs. 41177.00 lakh, Rs.

48054.00 lakh and Rs. 50963.00 lakh for the years 2014 – 2015, 2015 – 2016

and 2016 – 2017 as per newly introduced Point of Connection (POC) charge

method by CERC. As per annual accounts the amount paid in 2012-13 is Rs.

42594.00 lakh, which is as per POC method. Thus, the amounts admitted by the



Commission for 2014-15, 2015-16 and 2016-17 are Rs. 41177.00 lakh, Rs

48054.00 lakh and Rs. 50963.00 lakh respectively and considered under cost of

distribution function only.

5.19 ERPC Charge

WBSEDCL has projected ERPC charge as Rs. 15.00 lakh, Rs. 15.00 lakh and

Rs. 15.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017

respectively. Such projected amounts are admitted by the Commission.

5.20 System operation charges payable to POSOCO

WBSEDCL has projected system operation charge payable to POSOCO at Rs.

410.00 lakh each year for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017

which is admitted by the Commission.

5.21 SLDC Charges

WBSEDCL has projected SLDC charges as Rs. 2172.00 lakh, Rs. 2388.00 lakh

and Rs. 2619.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017

respectively. Such projected amounts are admitted by the Commission.

5.22 Adjustment of Amounts received towards Unscheduled Interchange (UI)

No amount on benefit from UI is considered as no energy on UI drawal is

projected by WBSEDCL for any ensuing year under the fourth control period.

However, any income from UI will be viewed on actual basis in the APR for the

respective years as per provisions of the Tariff Regulations.

5.23 Expenses attributable to Sale of energy to persons other than consumers and licensees of the Commission.

The expenses on this head as proposed by WBSEDCL has not been considered

as there is change in power purchase cost than that has been proposed by



WBSEDCL due to number of reasons as explained in this order. Moreover, the

quantum of sale to persons other than consumer and licensees are changed than

that has been projected by WBSEDCL as shown in energy balance

computations. Thus expenses attributable to sale of energy to persons other than

consumers and licensees of the Commission under fourth control period for

2014-15, 2015-16 and 2016-17 have been admitted as Rs. 130791.39 lakh, Rs

139664.28 lakh and Rs. 121188.13 lakh respectively considering average power

purchase cost of WBSEDCL for the respective years, subject to adjustments in

APR / FPPCA for the concerned years.

5.24 Sharing of benefits from sale of power to persons other than the consumers and licensees of the Commission:

Commission observes that due to volatile market the projections on such sale

have no compatibility at all with the actuals of the year. Due to the above reason

the projected tariff will be distorted if any gain sharing is considered on the basis

of such projected sale which ultimately provided an untrue perception in the level

of retail tariff that greatly affects the consumers, the licensees and power sector

as a whole. In order to remove such distortion in the tariff Commission decides

that in general the benefits from sale of power to person other than the

consumers and licensee of the Commission will be passed on to the consumers /

licensees on actual basis through APR of the concerned year only instead of

tariff order on projection basis.


ANNEXURE – 5A


Sheet – 1/2

Monthly Rate of Inflation in CPI number for Industrial Worker (%) Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Average

2010-11 13.33 13.91 13.73 11.25 9.88 9.82 9.7 8.33 9.47 9.3 8.82 8.82 10.53 2011-12 9.41 8.72 8.62 8.43 8.99 10.06 9.39 9.34 6.49 5.32 7.57 8.65 8.42 2012-13 10.22 10.16 10.05 9.84 10.31 9.14 9.6 9.55 11.17 11.62 12.06 11.44 10.43 2013-14 10.24 10.68 11.06 10.85 10.75 10.7 11.06 11.47 9.13 7.24 6.73 6.70 9.72 2014-15 7.08 7.02 6.49 7.23 6.75 6.3 6.81 Source : Website of Labour Bureau, GOI : Average Value is being Computed

WPI FROM OFFICE OF ECONOMIC ADVISOR , GOI

Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2009-10 125.0 125.9 126.8 128.2 129.6 130.3 131.0 132.9 133.4 135.2 135.2 136.3

2010-11 138.6 139.1 139.8 141.0 141.1 142.0 142.9 143.8 146.0 148.0 148.1 149.5

2011-12 152.1 152.4 153.1 154.2 154.9 156.2 157.0 157.4 157.3 158.7 159.3 161.0

2012-13 163.5 163.9 164.7 165.8 167.3 168.8 168.5 168.8 168.8 170.3 170.9 170.1

2013-14 171.3 171.4 173.2 175.5 179.0 180.7 180.7 181.5 179.6 179.0 179.5 180.3

2014-15 180.8 182.0 183.0 184.6 185.7 185.0

Source : Website of Office of the Economic Advisor, GOI :



ANNEXURE – 5A Sheet – 2/2

MONTHLY INFLATION RATE COMPUTED BASED ON WPI FROM OFFICE OF ECONOMIC ADVISOR, GOI (%)

Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average

2010-11 10.88 10.48 10.25 9.98 8.87 8.98 9.08 8.20 9.45 9.47 9.54 9.68 9.57

2011-12 9.74 9.56 9.51 9.36 9.78 10.00 9.87 9.46 7.74 7.23 7.56 7.69 8.96

2012-13 7.50 7.55 7.58 7.52 8.01 8.07 7.32 7.24 7.31 7.31 7.28 5.65 7.36

2013-14 4.77 4.58 5.16 5.85 6.99 7.05 7.24 7.52 6.40 5.11 5.03 6.00 5.98

2014-15 5.55 6.18 5.66 5.19 3.74 2.38 4.78


ANNEXURE – 5B


Sheet – 1/6 TABLE-1

ANNUAL ACTUAL FIGURE OF DIFFERENT BUISNESS PARAMETERS OF WBSEDCL DISTRBUTION FUNCTION HAVING IMPACT ON TARIFF

Sl No Particulars Units

Inflat

ionar

y Ba

sis

Sens

itivity

Pa

rame

ter &

de

gree

of

sens

itivity

2009-10 2010-11 2011-12 2012-13 2013-14

(Estimated by

WBSEDCL)

2013-14 (Estimated by

WBERC)

1 Total line-length on 31st March CKM 177041.51 274444.99 314430.72 408417.71 467924.168 467924.1681

2 Total consumers on 31st March number 7622169 8565366 10673192 12093202 12855266 12855266

Increase in line length % 55.017 14.570 29.891 14.570

Increase in consumer % 12.37 24.61 13.30 6.30

3 Repair & Maintenance Expenditure Rs Lakh WPI+CPI DLL 11653.96 14722.55 19324.18 21493.05 25327.36 25327.36 4 - Rent Rs Lakh WPI+CPI DLL 34.39 207.00 762 843.87 985.07 985.07 5 - Auditors Fees Rs Lakh WPI+CPI DLL 102.47 130.06 174.44 161.36 178.02 178.02 6 - Legal Charges Rs Lakh WPI+CPI CSM 218.22 287.80 244 293.38 323.66 323.66

7 - Others Administrative and General Expenses Rs Lakh WPI+CPI CSM 5566.64 6775.43 9878.53 9330.46 10580.28 10580.28

8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh

5921.72 7400.29 11058.97 10629.07 12067.03 12067.03

9 Total O&M Function Expenses (3+8) Rs Lakh 17575.68 22122.84 30383.15 32122.12 37394.39 37394.39

10 Lease Rental Line Rs Lakh WPI DLL 1934.00 692 1666 4724 1829.94

11 Expenses for Complaint Management Mechanism Rs Lakh WPI+CPI CSM 0.00 0.00 296.43 380.00 473.00 385.99

12 Rates & Taxes Rs Lakh WPI+CPI DLL 105.00 1102.00 1385 2488.00 2857.00 1270.00 13 Insurance Rs Lakh WPI+CPI DLL 39.00 390.00 88 370.00 801.00 672.00

14 Line & substation Maintenance (Excluding Man Power) Rs Lakh WPI+CPI DLL 2861 5629 3178 3674 4767.39 3701.51

15 Data Ware-housing Rs Lakh WPI+CPI CSM-L 10 6 9 80 93.36 10.79 16 Back office Job Rs Lakh WPI+CPI DLL 36 10 141 289.14 337.41 289.14 17 Franchisee Cost Rs Lakh CPI CSH 192 157 253 457 533.3 533.30 18 Meter Reading & Bill Distribution Rs Lakh CPI CSH 3536 4071 4530 4735 5525.53 4832.10



ANNEXURE – 5B Sheet 2/6


Inflat

ionar

y Ba

sis

Sens

itivity

Pa

rame

ter &

de

gree

of

sens

itivity

2009-10 2010-11 2011-12 2012-13 2013-14

(Estimated by

WBSEDCL)

2013-14 (As per Audited Accounts)

2013-14 (Estimated by

WBERC)

19 Collection Franchisee Rs Lakh WPI+CPI CSH 80 147 275 1086 1267.31 522 1154.44

20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19) Rs Lakh

6715 10020 8386 10321.14 12524.3 9416 10521.27

21 Manpower for Line & substation Maintenance Rs Lakh CPI DLL 3266 6777 7713.24 8697 7713.24

22 Security Expenses Rs Lakh CPI DLL 1752 1532 2288 3796.73 4430.61 2912 3042.37

23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh CPI CSM 62 148 1342 1552 1811.11 2070 1811.11

24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh CPI CSM 0 0 1838 2018 2354.91 6823 2354.91

25 Total Cost for Outsourcing including Manpower (21+22+23+24) Rs Lakh

1814 1680 8734 14143.73 16309.87 20502 14921.625

26 Total (9+10+11+12+13+20+25) Rs Lakh 26248.68 37248.84 49964.58 61490.99 75083.56 74451.00 66995.21




TABLE-2 PROJECTED ANNUAL ESCALATION RATE COMPUTATION OF DIFFERENT PARAMETERS DURING FOURTH CONTROL PERIOD (2014-15 TO 2016-17)


Inflat

ionar

y Bas

is

Sens

itivity

Pa

rame

ter &

de

gree

of

sens

itivity

CAGR (%) between

Aver

age

Inflat

ion

Rate

durin

g the

Co

ncer

ned p

eriod

$

Whe

ther I

nflati

on

rate

is ap

plica

ble

Addit

ional

Gro

wth

Rate

abov

e

inflat

ion ra

te Ra

tio of

Exp

. inc

reas

e &

sens

itivity

pa

rame

ter

incre

ase

Escalation rate (%) for

Remarks

2012

-13 t

o 20

13-1

4

2011

-12 t

o 20

13-1

4

2010

-11 t

o 20

13-1

4

2014

-15

2015

-16

2016

-17

1 Total line-length increase % 14.57 21.90 19.47 14.57 14.57 14.57 2 Total consumers increase % 6.30 9.75 14.50 8.44 8.06 7.81

3 Repair & Maintenance Expenditure Rs Lakh WPI+CPI DLL 17.84 14.485 19.82 8.27 Yes 6.22 0.28 10.17 12.21 12.21

4 - Rent Rs Lakh WPI+CPI DLL 16.73 13.70 68.20 8.27 Yes 5.43 0.25 9.73 11.77 11.77 5 - Auditors Fees Rs Lakh WPI+CPI DLL 10.32 1.02 11.02 8.27 No 1.12 1.12 1.12 6 - Legal Charges Rs Lakh WPI+CPI CSM 10.32 15.17 4.00 8.69 No 4.40 4.40 4.40

7 - Others Administrative and General Expenses Rs Lakh WPI+CPI CSM 13.40 3.50 16.01 8.27 No 3.85 3.85 3.85

8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh

9 Total O&M Function Expenses (3+8) Rs Lakh

10 Lease Rental Line Rs Lakh WPI DLL 9.84 62.61 -1.83 5.98 Yes 3.86 0.26 8.57 10.41 10.41

11 Expenses for Complaint Management Mechanism Rs Lakh WPI+CPI CSM 1.58 14.11 NA 7.48 No 1.73 1.73 1.73

12 Rates & Taxes Rs Lakh WPI+CPI DLL -48.95 -4.23 4.85 8.27 No 5.34 5.34 5.34 13 Insurance Rs Lakh WPI+CPI DLL 81.62 152.42 32.00 8.69 Yes 23.31 1.20 0.00 11.27 11.27





Inflat

ionar

y Bas

is

Sens

itivity

Pa

rame

ter &

de

gree

of

sens

itivity

CAGR (%) between

Aver

age

Inflat

ion

Rate

durin

g the

Co

ncer

ned p

eriod

$

Whe

ther I

nflati

on

rate

is ap

plica

ble

Addit

ional

Gro

wth

Rate

abov

e

inflat

ion ra

te Ra

tio of

Exp

. inc

reas

e &

sens

itivity

pa

rame

ter

incre

ase

Escalation rate (%) for

Remarks

2012

-13 t

o 20

13-1

4

2011

-12 t

o 20

13-1

4

2010

-11 t

o 20

13-1

4

2014

-15

2015

-16

2016

-17

14 Line & substation Maintenance (Excluding Man Power) Rs Lakh WPI+CPI DLL 0.75 7.92 -13.04 7.48 No 2.00 2.00 2.00

15 Data Ware-housing Rs Lakh WPI+CPI CSM-L -86.51 9.50 21.60 8.27 Yes 1.23 0.13 7.19 9.18 9.15 16 Back office Job Rs Lakh WPI+CPI DLL 0.00 43.20 207 7.48 No 5.59 7.63 7.63

17 Franchisee Cost Rs Lakh CPI CSH 16.70 45.19 50.32 9.72 Yes 6.98 1.11 15.25 17.21 16.96 Ratio

considered as 1

18 Meter Reading & Bill Distribution Rs Lakh CPI CSH 2.05 3.29 5.88 9.72 No 3.00 4.00 5.00 19 Collection Franchisee Rs Lakh WPI+CPI CSH 6.30 104.89 98.77 7.48 No 6.93 6.93 6.93

20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19)

Rs Lakh

21 Manpower for Line & substation Maintenance Rs Lakh CPI DLL 13.81 53.68 NA 9.72 Yes 4.09 0.28 10.89 13.23 13.23

22 Security Expenses Rs Lakh CPI DLL -19.87 15.32 25.70 9.52 Yes 5.80 0.26 10.60 12.94 12.94

23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh CPI CSM 16.70 16.18 130.44 9.52 Yes 6.66 0.68 11.03 13.18 13.06

R is considered

as 0.5

24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh CPI CSM 16.70 13.18 NA 9.52 Yes 3.66 0.38 10.02 12.21 12.12

Note: $ The concerned period means the period of which CAGR has been considered as escalation rate for future escalation rate calculation.




TABLE-3 COMPUTATION OF PROJECTED EXPENSESOF WBSEDCL DISTRBUTION FUNCTION FOR 4TH CONTROL PERIOD (2014-15 TO 2016-17)


Projected Expenses for 2014-15 by WBSEDCL

Computed Expenses for

2014-15 by the Commission

Admitted Expenses

for 2014-15




Admitted Expenses

for 2015-16




Admitted Expenses

for 2015-16

1 Total line-length on 31st March CKM 536100.72 536100.72 614210.59 614210.59 703701.07 703701.07 2 Total consumers on 31st March number 13940250 13940250 13940250 15064240 15064240 15064240 16240567 16240567 16240567

3 Repair & Maintenance Expenditure Rs Lakh 30288.56 27903 27903 36028.92 31310 31310 42758.06 35133 35133

4 - Rent Rs Lakh 1175.78 1081 1081 1398.62 1208 1208 1659.83 1350 1350 5 - Auditors Fees Rs Lakh 195.98 180 180 215.75 182 182 237.52 184 184 6 - Legal Charges Rs Lakh 356.32 338 338 392.28 353 353 431.86 369 369

7 - Others Administrative and General Expenses Rs Lakh 12138.99 10988 10988 14183.69 11411 11411 16305.84 11850 11850

8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh 13867.07 12587.00 12587.00 16190.34 13154.00 13154.00 18635.05 13753.00 13753.00

9 Total O&M Function Expenses (3+8) Rs Lakh 44155.63 40490.00 40490.00 52219.26 44464.00 44464.00 61393.11 48886.00 48886.00

10 Lease Rental Line 5604.15 2587 2587 6169.61 2856 2856 6792.12 3153 3153

11 Expenses for Complaint Management Mechanism Rs Lakh 564.68 393 393 671.70 400 400 797.15 407 407

12 Rates & Taxes Rs Lakh 3322.70 1338 1338 3878.90 1409 1409 4524.95 1484 1484 13 Insurance Rs Lakh 672.00 672 672 805.00 746 746 966.00 832 832

14 Line & substation Maintenance (Excluding Man Power) Rs Lakh 5691.39 3776 3776 6770.03 3852 3852 8034.47 3929 3929

15 Data Ware-housing Rs Lakh 111.45 12 12 132.57 13 13 157.33 14 14








Admitted Expenses

for 2014-15




Admitted Expenses

for 2015-16




Admitted Expenses

for 2015-16

16 Back office Job Rs Lakh 402.81 305 305 479.15 328 328 568.64 353 353 17 Franchisee Cost Rs Lakh 636.66 615 615 757.32 721 721 898.77 843 843

18 Meter Reading & bill distribution Rs Lakh 6596.46 4977 4977 7846.64 5176 5176 9312.16 5435 5435

19 Collection Franchisee Rs Lakh 1512.94 1234 1234 1799.67 1320 1320 2135.80 1411 1411

20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19)

Rs Lakh 14951.71 10919 10919.00 17785.38 11410 11410 21107.17 11985 11985

21 Manpower for Line and substation Maintenance Rs Lakh 9824.49 8553 8553 12086.45 9685 9685 15043.84 10966 10966

22 Security Expenses Rs Lakh 5408.71 3365 3365 6738.26 3800 3800 8296.77 4292 4292

23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh 2162.14 2011 2011 2871.91 2276 2276 3708.30 2573 2573

24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh 3050.10 2591 2591 3928.16 2907 2907 5048.33 3259 3259

25 Total Cost for Outsourcing including Manpower (22+23+24+25)

Rs Lakh 20445.44 16520 16520 25624.78 18668 18668 32097.24 21090 21090

26 Total (9+10+11+12+13+20+25) 89716.31 72919.00 72919.00 107154.63 79955.00 79955.00 127677.74 87837.00 87837.00


CHAPTER – 6

SUMMARISED STATEMENT OF AGGREGATE REVENUE REQUIREMENT & REVENUE RECOVERABLE THROUGH

TARIFF FOR THE YEAR 2014-15, 2015-16 & 2016-17


6.1 Based on the analyses and findings recorded in the foregoing chapters we

are now drawing the statements of Aggregate Revenue Requirement (ARR)

separately for each of the three years of the fourth control period covering the

years 2014-15, 2015-16 and 2016-17. Such statements are given in

Annexure 6A to 6I of this chapter.

6.2 In terms of the Tariff Regulations, we are also to ascertain the amount of

revenue recoverable through tariff for the years 2014-15 after carrying out

adjustments with the ARR for the concerned year of the net recoverable

amount determined in Annual Performance Review (APR) for the years 2012-

13 and any other amount related to release of regulatory asset partially or

fully. Accordingly the adjustments are as follows:

6.2.1 WBSEDCL has asked for adjustments of other amounts of Rs. 65742.00 lakh,

Rs. 76106.00 lakh and Rs. 89330.00 lakh in 2014-15, 2015-16 and 2016-17

respectively on the following accounts:

a) Arrear amount of Rs. 29448.00 lakh each year of 2014 – 2015, 2015 –

2016 and 2016 – 2017 payable by WBSEDCL to WBPDCL in instalments

on accounts of tariff order of new units of WBPDCL and the Commission

admits the same.

b) Arrear amount of Rs. 24504.00 lakh and Rs. 20420.00 lakh are payable

by WBSEDCL to WBPDCL in instalments during the year 2014 – 2015

and 2015 – 2016 respectively on account of arrear FCA for WBPDCL for

2010 – 2011 which the Commission admits.

c) Arrear amount of Rs. 7221.52 lakh, Rs. 29488.69 lakh (Rs. 14443.13 lakh

+ Rs. 15045.56 lakh) and Rs. 30091.13 lakh are payable in instalment for

2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively by WBSEDCL to



WBPDCL on account of FCA of WBPDCL for the years 2011 – 2012 and

2012 – 2013 in pursuance to order dated 11.12.2014 in cases no. 61/12-

13 and 67/13-14 of the Commission.

6.2.2 WBSEDCL has submitted their regulatory assets release plan in their tariff

application when APR order of 2012 – 2013 was not issued by the

Commission. After issuance of the APR order of WBSEDCL for 2012 – 2013

on 12.06.2014 the regulatory asset still remained unrealsed at the end of

2013 – 2014 are as follows:

a) Balance unreleased regulatory assets against APR order of WBSEDCL

for 2009 – 2010 is Rs. 17061.67 lakh.

b) Balance unreleased regulatory assets against APR order of WBSEDCL

for 2010 – 2011 is Rs. 23977.47 lakh.

c) Total regulatory assets against APR order of WBSEDCL for 2012 – 2013

are Rs. 186188.00 lakh.

d) Balance unreleased regulatory assets against APR order no. OA-63/09-

10 dated 24.09.2009 of WBSEDCL for 2008 – 2009 is Rs. 71703.86 lakh.

The Commission now decides to release all the above regulatory assets

within fourth control period in the following way:

a) The balance regulatory asset of Rs. 17061.67 lakh against APR order of

WBSEDCL for 2009 – 2010 is being allowed to be recovered through tariff

in the tariff order for the year 2014 – 2015.

b) The balance regulatory asset of Rs. 23977.47 lakh against APR order of


in the tariff order for the year 2014 – 2015.

c) The regulatory asset of Rs. 186188.00 lakh against APR order of




in the tariff order for the years 2014 – 2015, 2015 – 2016 and 2016 –

2017 by amounts of Rs. 33850.00 lakh, Rs. 20000.00 lakh and Rs.

132338.00 lakh respectively.

d) The balance regulatory asset of Rs. 71703.86 lakh against APR order for

2008 – 2009 in relation to terminal benefit funds is being allowed to be

recovered through tariff in the tariff order for the years 2014 – 2015, 2015

– 2016 and 2016 – 2017 by amounts of Rs. 2553.86 lakh, Rs. 36000.00

lakh and Rs. 33150.00 lakh respectively. Such amount is allocated to

distribution function only.

e) Such release of regulatory asset against above three APR orders of 2009

– 2010, 2010 – 2011 and 2012 – 2013 has been allocated to generation

and distribution functions for each year on the basis of ratio of Aggregate

Revenue Requirement (net fixed charge + variable cost) of generation

and distribution function of the APR of the respective year.

6.2.3 The Commission has also decided to pass on the carrying cost of regulatory

asset at the annual rate of 9.70% as proposed by WBSEDCL against the

APR orders of WBSEDCL for 2009 – 2010, 2010 – 2011 and 2012 – 2013.

However, for regulatory asset against APR order for 2008 – 2009 no carrying

cost is allowed as the actuarial valuation methodology adopted for annual

fund requirement of terminal benefit funds automatically takes care of the

impact of the regulatory asset on this terminal benefit fund as such amount

based on actuarial valuation is a pass through element of tariff subject to

regulatory scrutiny.

6.3 Based on the above, the amount of revenue to be recovered through tariff,

capacity charges and fixed charges for the year 2014 – 2015, is worked out in

the table below. The revenue recoverable through sell of electricity in 2015 –

2016 and 2016 – 2017 to the consumers of WBSEDCL and other licensees in

the State is also shown in this order as total revenue recoverable through

tariff to provide predictability to the stakeholders of minimum revenue to be

recovered in 2015 – 2016 and 2016 – 2017 and also to ensure release of

pending regulatory assets within the fourth control period.



REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2014 – 2015 (Rs. in lakh) Sl. No. Particulars Generation Distribution Total

1 Net Aggregate Revenue Requirement for 2014-15 as per Annexure – 6A 33723.93 1576873.26 1610597.19

2 Part release of regulatory assets created in APR for 2008 – 2009 0.00 2553.86 2553.86

3 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 29448.00 29448.00

4 Payable FCA of WBPDCL for the year 2010 – 11 vide order dated 16.10.2012 0.00 24504.00 24504.00

5 Payable FCA of WBPDCL for the year 2011 12 vide orders dated 04.07.2013 and 11.12.2014 0.00 7221.52 7221.52

6 Adjustment of APR of WBSEDCL for 2009 – 2010 667.20 16394.47 17061.67 7 Adjustment of APR of WBSEDCL 2010 - 2011 1165.60 22811.87 23977.47 8 Adjustment of APR of WBSEDCL 2012 – 2013 603.25 33246.75 33850.00 9 Carrying cost of APR of WBSEDCL 2009 – 2010 0.00 0.00 0.00

10 Carrying cost of APR of WBSEDCL 2010 – 2011 0.00 0.00 0.00 11 Carrying cost of APR of WBSEDCL for 2012 – 2013 263.33 14513.46 14776.79 12 Revenue Recoverable (1 to 11) 36423.31 1727567.19 1763990.50



2 Part release of regulatory assets created in APR for 2008 – 2009 0.00 36000.00 36000.00


4 Payable FCA of WBPDCL for the year 2010 – 11 vide order dated 16.10.2012 0.00 20420.00 20420.00

5 Payable FCA of WBPDCL for the year 2011 - 12 vide orders dated 04.07.2013 and 11.12.2014 0.00 14443.13 14443.13

6 Payable FCA of WBPDCL for the year 2012 – 2013 vide orders dated 06.06.2014 and 11.12.2014 0.00 15045.56 15045.56

7 Adjustment of APR of WBSEDCL for 2012 – 2013 356.43 19643.57 20000.00 8 Carrying cost of APR of WBSEDCL for 2012 – 2013 228.77 12608.02 12836.79 9 Revenue Recoverable (1 to 8) 40437.93 1867816.82 1908254.75





2 Part release of regulatory assets crated in APR for 2008 – 2009 0.00 33150.00 33150.00


4 Payable FCA of WBPDCL for the year 2012 – 2013 vide orders dated 06.06.2014 and 11.12.2014 0.00 30091.13 30091.13

5 Adjustment of APR of WBSEDCL 2012 – 2013 2358.44 129979.56 132338.00 6 Carrying cost of APR of WBSEDCL for 2012 – 2013 0.00 0.00 0.00 7 Revenue Recoverable (1 to 6) 46013.39 2106571.93 2152585.32

6.4 The above revenue recoverable through tariff for the year 2015 – 2016 and

2016 – 2017 may be changed in the tariff of those two years if there is any

subsequent adjustment with net revenue requirement of those two years as

determined in this order as per regulation 2.5.3 of the Tariff Regulations or

release of further regulatory asset.

6.5 To find out the revenue to be recovered from the consumers of WBSEDCL

the income of WBSEDCL from sale of power to CESC Limited, DPSCL, DPL

and Sikkim is to be done first and for that purpose the selling price of power

by WBSEDCL to above licensees are determined first as given below:

6.5.1 WBSEDCL in their tariff application have proposed for two part tariff for the

years 2014 – 2015, 2015 – 2016 and 2016 – 2017 for sale of power to CESC

Limited by WBSEDCL. On the basis of projected peak demand of 620 MW by

CESC Limited for the month of April, 2014 and in consideration of the peak

demand of WBSEDCL established during April 2014, WBSEDCL has

projected the fixed charge of Rs. 4764.00 lakh per month to be recovered by

WBSEDCL from CESC Limited. WBSEDCL has accordingly projected the

fixed charge for the years 2015 – 2016 and 2016 – 2017 at Rs. 2819 lakh per

month and Rs. 3261 lakh per month based on the projected peak demand at

330 MW and 385 MW for April 2015 and April 2016 respectively.



6.5.2 As it has been already discussed that Commission agrees in principle to

accept the WBSEDCL’s proposal of two part tariff thus based on the capacity

charge and energy charge payable by WBSEDCL to different suppliers, the

Commission has determined the two-part tariff for sale of power by

WBSEDCL to CESC Limited in the same principle based on power purchase

cost, different transmission charges and system related charges as has been

done by WBSEDCL in their submitted letter vide no. PTR/SERC/479 dated

25.3.2014 against Commission’s enquiries vide no. WBERC/TP-61/13-

14/1956 dated 18.03.2014 except the consideration of margin which has been

considered by Commission along with the energy charge instead of fixed

charge in line with the trading margin principle. The calculation of two part

tariff for sale of power by WBSEDCL to CESC Limited is given in Annexure –

6D.

6.5.3 Accordingly, for purchase of power by CESC Limited from WBSEDCL, the

Commission admits the fixed charge of Rs. 4314.00 lakh per month from

March 2015 which will be continued for balance part of 2014 – 2015. Prior to

March, 2015, the purchase price of power by CESC Limited from WBSEDCL

will be in single part and at an average rate of 571 paise / kWh which is being

the average rate of current purchase price. In this context this may be clearly

noted that during the period of April 2014 to February, 2015 the power

purchase price will be 571 paise / unit on the basis of the actual energy

drawal and no separate charge will be applicable. The mechanism of two part

tariff will be introduced from March, 2015 as the same is the major structural

change requiring modification of despatch protocol at both seller’s and

purchaser’s end as well as there is requirement of modification in

scheduling and related state energy accounting procedure at SLDC end.

However, for 2015 – 2016 and 2016 – 2017 the purchase price of CESC

Limited from WBSEDCL shall be two part where the capacity charge will be

Rs. 2545.00 lakh per month and Rs. 2885.00 lakh per month respectively

subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this

order. To accommodate the need of the said direction in paragraph 8.14 in

Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be

736.67 paise / kWh and 757.30 paise / kWh respectively. Besides the fixed

charge per month under two part tariff mechanism, CESC has to pay energy



charge on actual energy drawal every month as per the rate admitted and

shown in Annexure 6E.

The above fixed charges of Rs. 4314.00 lakh / per month, Rs. 2545.00 lakh /

month and Rs. 2885.00 lakh / month in 2014 – 2015, 2015 – 2016 and 2016 –

2017 respectively, are based on agreed annual maximum drawal of 620 MW,

330 MW and 385 MW respectively. In case such above agreed maximum

drawal for any year increases or decreases due to any agreed principle

between CESC Limited and WBSEDCL including that in the terms and

conditions of the PPA as per the direction in paragraph 8.14 of this order,

then the above fixed charges will be accordingly increased or decreased in

proportion to the increase or decrease in maximum agreed drawal.

Accordingly, corresponding single part tariff will also be increased or

decreased. Such change is to be done through agreement between CESC

and WBSEDCL.

6.5.4 In same line of calculation the two part tariff for sale of power by WBSEDCL

to DPSCL are also provided in Annexure – 6F and tariff to be recovered in

two part mechanism are given in Annexure – 6G which will be applicable from

1st March, 2015. From 1st April, 2014 to 28th February, 2015 the selling price

of electricity by WBSEDCL will be in single part and at a current average rate

of 578 paise / kWh (inclusive of MVCA). In this context this may be clearly

noted that during the period of April 2014 to February, 2015 the power

purchase price will be Rs. 578 paise / unit on the basis of the actual energy

drawal and no separate charge will be applicable. The mechanism of two part

tariff will be introduced prospectively from March, 2015 as the same is the

major structural change requiring modification of despatch protocol at both

seller’s and purchaser’s end as well as there is requirement of modification in

scheduling and related state energy accounting procedure at SLDC end. The

fixed charge applicable from March, 2015 for 2014 – 2015 will be Rs. 590.00

lakh per month. However, for 2015 – 2016 and 2016 – 2017 the purchase

price of DPSCL from WBSEDCL shall be two parts where the capacity charge

will be Rs. 656.00 lakh per month and Rs. 636.00 lakh per month respectively

subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this

order. To accommodate the need of the said direction in paragraph 8.14 in



Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be

575.69 paise / kWh and 554.02 paise / kWh respectively. Besides the fixed

charge per month under two part tariff mechanism, DPSCL has to pay energy

charge on actual energy drawal every month as per the rate admitted and

shown in Annexure 6G.

The above fixed charges of Rs. 590.00 lakh / per month, Rs. 656.00 lakh /

month and Rs. 636.00 lakh / month in 2014 – 2015, 2015 – 2016 and 2016 –

2017 respectively, are based on agreed annual maximum drawal of 85 MW in

each year. In case such above agreed maximum drawal for any year

increases or decreases due to any agreed principle between DPSCL and

WBSEDCL including that in the terms and conditions of the PPA as per the

direction in paragraph 8.14 of this order, then the above fixed charges will be

accordingly increased or decreased in proportion to the increase or decrease

in maximum agreed drawal. Accordingly, corresponding single part tariff will

also be increased or decreased. Such change is to be done through

agreement. In this context it may be noted that DPSCL has not objected the

proposal of WBSEDCL for the said two part tariff.

6.5.5 The price for sale of electricity to Sikkim by WBSEDCL has been admitted as

proposed by WBSEDCL and is 202 paise / kWh for all the years 2014 – 2015,

2015 – 2016 and 2016 – 2017.

6.5.6 The price for sale of electricity to DPL by WBSEDCL has been admitted as

proposed by WBSEDCL and is 563 paise / kWh for 2014 – 2015, 619 paise /

kWh for 2015 – 2016 and 681 paise / kWh for 2016 – 2017.

6.5.7 While determining the price for sale of electricity to CESC Limited, DPL and

DPSCL price determination has not been done by differentiation on the basis

of time for peak, off-peak and normal hours as proposed by WBSEDCL

because in the state power system the tariff determination of different

suppliers are being done by different authority where all such suppliers do not

provide such type of tariff. Thus to ensure level playing ground in application

of merit order despatch principle the Commission has not differentiated tariff

of any supplier in supply side chain of WBSEDCL for sale of power to

WBSEDCL.



6.6 Using the above determined price for selling of electricity through bulk supply

by WBSEDCL to different licensees of the State and to Sikkim the projected

revenue income are determined and given in Annexure – 6I.

6.7 The Commission has also worked out the average tariff for the consumers of

WBSEDCL for 2014 – 2015 and the same is shown in the table below:

AVERAGE TARIFF FOR THE CONSUMERS OF WBSEDCL IN 2014 – 2015 Sl. No. Particulars Unit Total

1 Total Revenue to be recovered through tariff Rs. in Lakh 1763990.50

2 Revenue from sale of power to Licensee and Sikkim Rs. in Lakh 137984.00

3 Revenue recoverable from sale of power to the consumers [(3 )= (1)-(2)] Rs. in Lakh 1626006.50

4 Projected quanta of energy for sale to consumers MU 24785.10

5 Average tariff for the consumers for the year 2014 – 2015 [(5)=(Sl.3)x10/(Sl.4)] Paise / kWh 656.04

6.8 On the basis of calculated revenue recoverable for supply of power to the

consumers and average tariff for the consumers for the year 2014 - 2015 as

mentioned in serial number 3 and 5 of above table in paragraph 6.7

respectively, the detail tariff structure for different classes of consumers and

the other terms and conditions related to tariff for the year 2014-15 are

provided in chapter -7 of this order.

6.9 After releasing of the existing regulatory assets and after adjusting a part of

the amount to be recovered due to WBSEDCL’s APR of 2009 – 2010, 2010 –

2011 and 2012 – 2013 through this tariff order the balance amount remaining

as regulatory asset after issuing of this order are as follows:

Sl. No. Heads of regulatory assets Opening balance of

2014 - 2015 Closing balance (Rs. in lakh) at the end of

2014-15 2015-16 2016-17

1 Part release of balance regulatory assets in APR for 2008 – 2009

71703.86 69150.00 33150.00 0.00

2 Adjustment of APR of WBSEDCL for 2009 – 2010 17061.67 0.00 0.00 0.00

3 Adjustment of APR of WBSEDCL 2010 - 2011 23977.47 0.00 0.00 0.00

4 Adjustment of APR of WBSEDCL 2012 – 2013 186188.00 152338.00 132338.00 0.00

5 Total 298931.00 221488.00 165488.00 0.00


ANNEXURE- 6A


AGGREGATE REVENUE REQUIREMENT FOR WBSEDCL

Sl No ITEM ARR FOR 2014 - 2015 (Rs. in lakh)

PROPOSED ADMITTED Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1293519.46 1293519.46 0.00 1282088.50 1282088.50 3 Transmission charges payable to WBSETCL 0.00 112834.87 112834.87 0.00 95537.89 95537.89 4 CTU Charges 0.00 41177.00 41177.00 0.00 41177.00 41177.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00

6 System operation charges payable to POSOCO 0.00 410.00 410.00 0.00 410.00 410.00

7 SLDC charges 0.00 2172.00 2172.00 0.00 2172.00 2172.00

8 Salary & wages including other staff welfare benefits 4175.40 116758.94 120934.34 2849.45 83110.32 85959.77

9 Terminal benefits 1150.55 33558.60 34709.15

10 Cost of Outsourcing excluding manpower and vehicle hiring) 0.00 14951.71 14951.71 0.00 10919.00 10919.00

11 Cost of Outsourcing for manpower and vehicle hiring 0.00 20445.44 20445.44 0.00 16520.00 16520.00

12 Rates & taxes 0.00 3322.70 3322.70 0.00 1388.00 1388.00 13 Operation and Maintenance 4270.75 44155.63 48426.38 4270.75 40490.00 44760.75 14 Complaint Management Mechanism 0.00 564.68 564.68 0.00 393.00 393.00 15 Insurance 0.00 672.00 672.00 0.00 672.00 672.00 16 Depreciation 9087.00 41214.00 50301.00 9087.00 41214.00 50301.00 17 Interest on loan 15473.48 34193.32 49666.80 15473.48 34193.32 49666.80 18 Other finance charges 48.11 680.02 728.13 48.11 680.02 728.13 19 Interest on bond for pension fund 1263.00 11742.00 13005.00 1263.00 11742.00 13005.00

20 Lease Rental Charges for MPLS-VPN service 0.00 5604.15 5604.15 0.00 2587.00 2587.00

21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 823.90 823.90 0.00 823.90 823.90 23 Interest on Consumers' Security Deposit 0.00 7033.64 7033.64 0.00 7034.00 7034.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 34317.74 1826289.46 1860607.20 34142.34 1743961.76 1778104.10 28 Less income from non-tariff sources 0.00 34399.42 34399.42 0.00 34399.42 34399.42 29 Less interest credit 363.00 1646.00 2009.00 418.41 1897.69 2316.10

30 Less: Recovery of expenses attributable for sale of energy to persons other than consumers & licensees

0.00 124444.00 124444.00 0.00 130791.39 130791.39

31 Net aggregate revenue requirement 33954.74 1665800.04 1699754.78 33723.93 1576873.26 1610597.19


ANNEXURE- 6B



Sl No ITEM

ARR FOR 2015 - 2016 (Rs. in lakh) PROPOSED ADMITTED

Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1421572.96 1421572.96 0.00 1366803.54 1366803.54 3 Transmission charges payable to WBSETCL 0.00 139700.17 139700.17 0.00 113879.69 113879.69 4 CTU Charges 0.00 48054.00 48054.00 0.00 48054.00 48054.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00


7 SLDC charges 0.00 2388.00 2388.00 0.00 2388.00 2388.00





12 Rates & taxes 0.00 3878.9 3878.90 0.00 1409.00 1409.00 13 Operation and Maintenance 4486.44 52219.26 56705.70 4486.44 44464.00 48950.44 14 Complaint Management Mechanism 0.00 671.07 671.07 0.00 400.00 400.00 15 Insurance 0.00 805.00 805.00 0.00 746.00 746.00 16 Depreciation 10223.00 51148.00 61371.00 10223.00 51148.00 61371.00 17 Interest on loan 19638.46 47210.76 66849.22 19638.46 47210.76 66849.22 18 Other finance charges 50.79 703.19 753.98 50.79 703.19 753.98 19 Interest on bond for pension fund 1462.00 11543.00 13005.00 1462.00 11543.00 13005.00


21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 906.26 906.26 0.00 906.26 906.26 23 Interest on Consumers' Security Deposit 0.00 7983.18 7983.18 0.00 7983.00 7983.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 40584.73 2044707.72 2085292.45 40389.45 1897864.60 1938254.05 28 Less income from non-tariff sources 0.00 35306.48 35306.48 0.00 35306.48 35306.48 29 Less interest credit 0.00 3183.44 3183.44 536.72 2685.30 3222.02


0.00 137448.00 137448.00 0.00 139664.28 139664.28



ANNEXURE- 6C



Sl No ITEM

ARR FOR 2016 – 2017 (Rs. in lakh) PROPOSED ADMITTED

Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1589481.46 1589481.46 0.00 1469958.94 1469958.94 3 Transmission charges payable to WBSETCL 0.00 145217.00 145217.00 0.00 117845.19 117845.19 4 CTU Charges 0.00 50963.00 50963.00 0.00 50963.00 50963.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00


7 SLDC charges 0.00 2619.00 2619.00 0.00 2619.00 2619.00





12 Rrates & taxes 0.00 4524.95 4524.95 0.00 1484.00 1484.00 13 Operation and Maintenance 4707.65 61393.11 66100.76 4707.65 48886.00 53593.65 14 Complaint Management Mechanism 0.00 797.15 797.15 0.00 407.00 407.00 15 Insurance 0.00 966.00 966.00 0.00 832.00 832.00 16 Depreciation 11501.00 57541.00 69042.00 11501.00 57541.00 69042.00 17 Interest on loan 21264.60 55015.31 76279.91 21264.60 55015.31 76279.91 18 Other finance charges 54.75 731.36 786.11 54.75 731.36 786.11 19 Interest on bond for pension fund 1536.00 11469.00 13005.00 1536.00 11469.00 13005.00


21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 996.92 996.92 0.00 996.92 996.92 23 Interest on Consumers' Security Deposit 0.00 8845.36 8845.36 0.00 8845.00 8845.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 44410.88 2274111.92 2318522.80 44308.53 2045397.17 2089705.70 28 Less income from non-tariff sources 0.00 37035.86 37035.86 0.00 37035.86 37035.86 29 Less interest credit 0.00 3966.13 3966.13 653.58 3269.94 3923.52


0.00 122896.00 122896.00 0.00 121188.13 121188.13



ANNEXURE- 6D


FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED

Sl. No. Particulars Units 2014-15 2015-16 2016-17

1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO charge Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 CESC drawal as considered MW 620.00 330.00 385.00

10 Sharing of CESC (Sl. 9 x 100 ÷ Sl. 8) % 10.23 5.12 5.44

11 Sharing of Annual Fixed cost by CESC (Sl. 7 x Sl. 10 x 0.01) Rs. in lakh 51767.00 30534.00 34613.00

12 Monthly Fixed charge payable by CESC (Sl. 11 ÷ 12) Rs. in lakh 4314.00 2545.00 2885.00

ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED Sl. No. Particulars Units 2014-15 2015-16 2016-17

1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100

5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19

6 Average energy cost of power by WBSEDCL Paise / unit 242.08 234.05 234.72

7 Energy price at delivery point to CESC Limited with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98

8 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00

9 Energy charge for sale of power by WBSEDCL to CESC (7+8) Paise / unit 260.00 252.00 252.00

Note: For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A


ANNEXURE- 6E


ENERGY PURCHASE RATE OF CESC LIMITED FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017

UNDER TWO PART TARIFF MECHANISM

Item Unit 2014-15 2015-16 2016-17 Agreed annual maximum drawal MW 620 330 385 Monthly fixed charge Rs. lakh / month 4314.00 2545.00 2885.00 Energy charge Paise / kWh 260.00 252.00 252.00

Note:

i) The above fixed charge is subject to condition of change in agreed annual

maximum drawal as mentioned in paragraph 6.5.3 and paragraph 8.14 of

this order.

ii) In any day due to urgent necessity if any short term power is required by

CESC Limited, then CESC Limited can draw power more than the agreed

annual maximum drawal if WBSEDCL agrees and in that case CESC

Limited shall pay increased fixed charge for that day in proportionate to

actual additional drawal for that day. The additional fixed charge payable

for such day only will be as per following formula:

Additional fixed charge payable for a day due to drawal above the agreed

annual maximum drawal =

(Maximum drawal in MW during the day ÷ Agreed Annual Maximum

drawal) x (Monthly fixed charge for the month corresponding to the day

concerned ÷ number of days in that month).

iii) If in any month CESC Limited’s drawal is within the agreed annual

maximum drawal then CESC Limited shall pay the monthly fixed charge



147

as per table above. WBSEDCL shall, however, ensure that it makes

power available to CESC Limited at the level of agreed annual maximum

drawal every month.

iv) If in any case WBSEDCL fails to provide electricity on any day as per

requisitioned power within the agreed Annual Maximum drawal then for

that day the payable fixed charge will be proportionately reduced.

v) The above conditions may be changed as per the terms and conditions of

the PPA approved by the Commission in pursuance to the directions in

paragraph 8.14 of this order.


ANNEXURE- 6F


FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL

Sl. No. Particulars Units 2014-15 2015-16 2016-17

1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 Contractual load of DPSCL MW 100.00 100.00 100.00

10 DPSCL’s drawal as considered in MW by taking Power Factor as MW 85.00 85.00 85.00

11 Sharing of DPSCL load (Sl. 10 x 100 ÷ Sl. 8) % 1.40 1.32 1.20

12 Sharing of Annual Fixed cost by DPSCL (Sl. 7 x Sl. 11 x 0.01) Rs. in lakh 7084.00 7872.00 7635.00

13 Monthly Fixed charge payable by DPSCL (Sl. 12 ÷ 12) Rs. in lakh 590.00 656.00 636.00 ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL

Sl. No. Particulars Units 2014-15 2015-16 2016-17 1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100 5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19 6 Average purchase cost of power by WBSEDCL Paise / unit 242.08 234.06 234.72

7 Energy price at WBSEDCL periphery with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98

8 Energy price at WBSEDCL periphery with HV loss [Sl.7 ÷ (1-0.08)] Paise / unit 274.66 265.78 266.28

9 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00 10 Wheel charge (See Annexure – H) Paise / unit 94.12 102.76 103.63

11 Energy charge for sale of power by WBSEDCL to DPSCL (8+9+10) Paise / unit 376.00 376.00 377.00

Note: 1) For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A 2) At sl. No. 8, additional loss of 8% is considered at HV level as per regulation related to Open Access over the transmitting loss.


ANNEXURE- 6G


ENERGY PURCHASE RATE OF DPSCL FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017

UNDER TWO PART TARIFF MECHANISM

Item Unit 2014-15 2015-16 2016-17 Agreed annual maximum drawal MW 85.00 85.00 85.00 Monthly fixed charge Rs. lakh / month 590.00 656.00 636.00 Energy charge Paise / kWh 376.00 376.00 377.00

Note:

i) The above fixed charge is subject to condition of change in agreed annual

maximum drawal as mentioned in paragraph 6.5.4 and paragraph 8.14 of

this order.

ii) In any day due to urgent necessity if any short term power is required by

DPSCL, then DPSCL can draw power more than the agreed annual

maximum drawal if WBSEDCL agrees and in that case DPSCL shall pay

increased fixed charge for that day in proportionate to actual additional

drawal for that day. The additional fixed charge payable for such day only

will be as per following formula:

Additional fixed charge payable for a day due to drawal above the agreed

annual maximum drawal =

(Maximum drawal in MW during the day ÷ Agreed Annual Maximum

drawal) x (Monthly fixed charge for the month corresponding to the day

concerned ÷ number of days in that month).

iii) If in any month DPSCL’s drawal is within the agreed annual maximum

drawal then DPSCL shall pay the monthly fixed charge as per table



150

above. WBSEDCL shall, however, ensure that it makes power available

to DPSCL at the level of agreed annual maximum drawal every month.

iv) If in any case WBSEDCL fails to provide electricity on any day as per

requisitioned power within the agreed Annual Maximum drawal then for

that day the payable fixed charge will be proportionately reduced.

v) The above conditions may be changed as per the terms and conditions of

the PPA approved by the Commission in pursuance to the directions in

paragraph 8.14 of this order.


ANNEXURE- 6H


WHEELING CHARGE DETERMINATION FOR WBSEDCL Sl. No. Particulars Units 2014 - 2015 2015 - 2016 2016 - 2017

1 Employe cost Rs. in lakh 116668.92 129630.95 143914.242 Cost of outsourcing Rs. in lakh 27439.00 30078.00 33075.003 Operation and Maintenance expenses Rs. in lakh 40490.00 44464.00 48886.004 Rates and taxes Rs. in lakh 1388.00 1409.00 1484.005 Insurance Rs. in lakh 672.00 746.00 832.006 Interest on loan Rs. in lakh 34193.32 47210.76 55015.317 Interest on Bonds for pension fund Rs. in lakh 11742.00 11543.00 11469.008 Other finance charges Rs. in lakh 680.02 703.19 731.36

9 Depreciation (net of depreciation on metering and other asset) Rs. in lakh 35184.00 42651.00 47982.00

10 Taxes under Income Tax Act Rs. in lakh 823.90 906.26 996.9211 Return on Equity Rs. in lakh 37236.21 37236.21 37236.2112 Gross Fixed Charges Rs. in lakh 306517.37 346578.37 381622.04

13 Less: Non Tariff income related to distribution function Rs. in lakh 34399.42 35306.48 37035.86

14

Less Expenses incidental to selling and distribution of energy viz., meter reading & billing, collection franchisee cost, franchisee cost, complaint management mechanism for consumer, lease rental charges, data warehousing, back office job, franchisee cost, call centre cost, MCSU service, etc.

Rs. in lakh 14725.00 15997.00 17448.00

15 Interest credit Rs. in lakh 1897.69 2685.30 3269.94

16Net admissible Fixed Charge related to distribution for power transmission only (12-13-14-15)

Rs. in lakh 255495.26 292589.59 323868.24

A Sale to own consumers MU 24785.10 27232.10 29921.10B Sale to other licensees MU 2010.00 830.00 885.00C Sale to licensee below EHV MU 333.90 394.20 431.30D Energy wheeled MU 15.64 15.64 15.64E Total sale of energy (A+B+C+D) MU 27144.64 28471.94 31253.04F Wheeling charge (16/E) paise / unit 94.12 102.76 103.63


ANNEXURE- 6I


REVENUE INCOME CALCULATION FROM LICENSEE & SIKKIM

DETAIL CALCULATIONS OF RECOVERABLE AMOUNT FROM LICENSEES AND SIKKIM FOR 2014-15 Licensee Energy in MU Revenue (Rs. in lakh)

Apr’ 14 – Feb’ 15 Mar’ 2015 Apr’ 14 – Feb’ 15 Mar’ 2015 2014-15 CESC* 1778.00 32.00 101523.80 5146.00 106670.00 DPSCL* 295.09 38.81 17056.20 2049.26 19105.00 DPL 200.00 11260.00 11260.00 SIKKIM 47.00 949.40 949.00 *Based on projected energy consumption as submitted with tariff application

AMOUNT RECOVERABLE FROM BULK SUPPLY DURING FOURTH CONTROL PERIOD

ENERGY SALE BY WBSEDCL TO OTHER LICENSEE OF WEST BENGAL AND SIKKIM

Sl. No.

PURCHASER OF POWER

ENERGY SALE IN MU REVENUE IN Rs. LAKH 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17

1 SALE TO CESC 1810 630 685 106670.00 46410.00 51875.00 2 SALE TO DPSC 333.90 394.22 431.30 19105.00 22695.00 23895.00 3 SALE TO DPL 200.00 200.00 200.00 11260.00 12380.00 13620.00

4 SALE TO SIKKIM AS PER CONTRACT

47.00 47.00 47.00 949.00 949.00 949.00

5 SALE TO LICENSEE (1+2+3+4)

2390.90 1271.22 1363.30 137984.00 82434.00 90339.00

The above revenue is computed by considering the sale of CESC Limited and DPSCL at

Annexure 6E and 6G respectively. For Sikkim the rate is considered as 202 paise as per

projection. For DPL the rate is considered as 563 paise per unit, 619 paise per unit and

681 per unit for 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively.

Tariff order of WBSEDCL for the year 2014 – 2015

CHAPTER – 7 TARIFF ORDER FOR 2011-12


153

7.1 As mentioned in the previous chapter, the Commission, in accordance with the

Tariff Regulations, has determined for WBSEDCL the Aggregate Revenue

Requirement (ARR) for each ensuing year of the fourth control period covering

the years 2014-15 to 2016-17 and the revenue recoverable through tariff

during 2014-15, 2015-16 and 2016-17 after all the necessary adjustment as

discussed in chapter 5 and 6.

7.2 WBSEDCL has proposed a tariff structure without taking into cross-subsidy

related objective under guiding factors of tariff determination as specified in

paragraph (vii) of regulation 2.2.1 of the Tariff Regulations. The scrutiny of the

proposed tariff structure reveals that WBSEDCL have in general proposed

increase in tariff for different rates under commercial categories significantly

without any reasoning and justification in favour of not maintaining the above

guideline in spite of the fact that proposed average cost of supply has been

reduced from the existing tariff inclusive of MVCA and as a result the said

objective has been flouted for the class of consumers under commercial

category. For an example the rate of LT commercial consumers of urban area

may be referred. Thus, the Commission has redesigned the tariff structure

based on the following principles:

i) None of the class of consumers based on purpose of supply has been

charged with a tariff in order to see that the average tariff for that class of

consumers remains within 120% of the average cost of supply.



154

ii) Considering the difference in service quality for rural and urban area as

per Standard of Performance Regulations and in line with the opinion

expressed by the Commission in paragraph 3.3.3 of this tariff order, the

Commission continues to keep separate tariff rate for certain class of

consumers under L&MV class in the tariff order of this year in line with the

past trend. The above separate tariff also helps in to achieve the objective

of the previous point of maintaining average tariff of any class of

consumer at a price so that it does not exceed 120% of the average cost

of supply.

iii) At the same time, the Commission in line with paragraph 8.3 (i) of

National Tariff Policy has reduced the suggested tariff of WBSEDCL

suitably for lifeline consumer.

iv) In order to avoid tariff shock as per paragraph 5.5.3 of National Electricity

Policy, the Commission, to implement the reduction of cross-subsidy

progressively and also to satisfy the objective of paragraph 8.3 (iii) of

National Tariff Policy, as a overall balancing act, has accepted the

proposed increase in tariff of irrigation by WBSEDCL and no further

increase has been done by the Commission though the average tariff for

irrigation supply is below 80% of the average cost of supply.

v) After maintaining the above principles only the Commission has tried to

follow the approach of WBSEDCL in their tariff design on balance class of

consumers other than those as mentioned above to the extent it is felt fit

by the Commission.



155

vi) Existing rates of B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT have to be

decreased significantly in order to make the average tariff of the class of

consumers under those rates within 120% of the average cost of supply.

Thus, such decrease has been effected by reducing both demand and

energy charges.

Accordingly the tariff schedule applicable to the consumers of WBSEDCL in

2014-15 and the associated terms and conditions are as follows:

Consumers belonging to Lokdeep/Kutirjyoti, Labourline, Life Line consumers,

Domestic (Rural) and Domestic (Urban) category will fall under L&MV

Domestic consumers (below 50KVA). Commercial (Rural), Commercial

(Urban) and consumers covered under A (Cm-II), A (Cm-III), A (Cm-PU) and A

(Cm)-CP will fall under L&MV Commercial consumers (below 50 KVA). Government school will also fall under L&MV public utility consumers.

The tariff schedule as applicable to the consumers of WBSEDCL in the year

2014 – 2015 is given at Annexure – 7A1 for LV and MV consumers under

quarterly billing cycle, at Annexure – 7A2 for LV and MV consumers under

monthly billing cycle and at Annexure – 7A3 for HV and EHV consumers. Two

new rates T(M) and D-ID have been introduced. The Commission has decided

to give certain directives to WBSEDCL on various matters. These are to be

found at Chapter – 8. Except rate B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT,

D-ID and D-IDT, all the rates under L&MV category are applicable for the

supply below 50 KVA. Details of different tariff schemes of different classes of

consumers and various associated terms and conditions are specified in

various regulations and in Annexure – C1 and Annexure – C2 of the Tariff



156

Regulations. Other associated conditions of tariff of WBSEDCL for 2014 –

2015 shall be as follows:

7.2.1 Load Factor Rebate/ Surcharge:

7.2.1.1 In order to reduce the overall system T&D loss and to flatten the load curve by

improving the existing system load factor of WBSEDCL, the voltage-wise

graded load factor rebate applicable for the EHV and HV industrial consumers

and L&MV industrial consumer under rate (B-IDI and B-IDIT) will be as per the

following table:

LOAD FACTOR REBATE (Paise / kWh) For the Year 2014-15

Range of Load Factor (LF) Supply Voltage Below 33 kV 33 kV Above 33 kV

Above 55% Up to 60% 1 2 3 Above 60% Up to 65% 7 8 9 Above 65% Up to 70% 14 29 39 Above 70% Up to 75% 20 35 45 Above 75% Up to 80% 25 40 50 Above 80% Up to 85% 30 45 55 Above 85% Up to 90% 35 50 60 Above 90% Up to 92% 40 55 65 Above 92% Up to 95% 45 60 70 Above 95% 50 65 75

The above load factor rebate shall be applicable on total quantum of energy

consumed in the billing period. (For example a 33 kV industrial consumer at

85% load factor shall be eligible for a rebate @ 45 paise / kWh on the total

quantum of energy consumed in the billing period).

7.2.1.2 Industrial consumer whose contract demand is 1.5 MVA or above will get

additional rebate as per following table subject to the condition that payment is

made within the due date.



157

Additional Load Factor Rebate(paise/kWh) Load Factor 2014-15 Above 65% but upto 80% 20 Above 80% 35

7.2.1.3 Load factor surcharge shall continue at the prevailing rate for those categories

of consumers to whom these are applicable at present and also to L&MV

industrial consumer under rate (B-IDI and B-IDIT).

7.2.1.4 Load factor rebate and load factor surcharge shall be computed in accordance

with the formula and associated principles given in regulations 3.9.2, 3.9.3 and

3.9.4 of the Tariff Regulations and at the rates mentioned in paragraphs

7.2.1.1 to 7.2.1.3 above.

7.2.2 Fixed / Demand Charge:

7.2.2.1 The fixed charge shall be applicable to different categories of consumers at

the rates as shown in Annexure 7A1 and Annexure 7A2 of this tariff order.

7.2.2.2 The demand charge shall be applicable to different categories of consumers

as per rates as shown in Annexure 7A2 and Annexure 7A3 of this order on

the basis of recorded demand as specified in regulation 4.3.3 of the Tariff

Regulations subject to the conditions as specified in the Tariff Regulations.

7.2.2.3 When a new consumer gets connected to the system, the computation of fixed

charge or demand charge for that month shall be made pro-rata for the

number of days of supply in that particular month.

7.2.3 Subject to the condition as specified in regulation 4.13 of the Tariff

Regulations, the minimum charge shall continue at the existing level for all

consumers.



158

7.2.4 In case of short term supply to Pandals for community religious ceremonies, a

rebate of 30 paise / kWh on energy charge of each unit will be given

prospectively from the date of this order if the entire illumination is done with

LED. Prior to this order, the rebate will be 10 paise / kWh.

7.2.5 For all consumers, excluding consumers having pre-paid meters, rebate shall

be given @ 1% of the amount of the bill excluding meter rent, taxes, duties,

levies and arrears (not being the arrears due to revision of tariff) if the

payment is made within the due date.

7.2.6 A special rebate of 25 paise/kWh for 2014-15 on energy charge shall be given

to the Cold storage or dairy with chilling plant having contractual load between

50 KVA and 125 KVA under C-ID and C-IDT tariff category. This rebate shall

be given before giving effect to rebate mentioned in paragraph 7.2.5.

7.2.7 In order to encourage one time payment for three months bill a special rebate

of 10 paise per unit for 2014-15 on energy charge shall be given to domestic

and commercial consumers under LV and MV categories covered by quarterly

billing cycle under normal or normal-TOD tariff scheme if the payment is made

for the quarter at a time within the due date stipulated for the first month of the

quarter. This rebate shall be in addition to rebate under paragraph 7.2.5 for

normal meter or normal TOD meter and will be given effect after giving effect

to rebate under paragraph 7.2.5.

7.2.8 Un-metered agricultural / irrigation consumers may make monthly payment for

which they shall be entitled to 1% rebate for timely payment within the due

date in line with the consumers of other categories as mentioned in paragraph

7.2.5. In case, however, such agricultural/ irrigation consumers opt for

advance payment of the full annual amount, the consumers shall be allowed a



159

rebate of 4% in addition to 1% rebate mentioned in paragraph 7.2.5 and this

additional rebate of 4% shall be given effect after giving effect to rebate under

paragraph 7.2.5.

7.2.9 In addition to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6, 7.2.7 and 7.2.8

above, if the payment is made within due date, then an additional rebate of 1%

of the amount of the bill excluding meter rent, taxes, duties, levies and arrears

(not being arrears due to revision of tariff) would be allowed to the consumers

who would pay their energy bills through e-payment facility (through web by

using net banking, debit card, credit card, electronic clearing scheme). A

rebate of Rs. 5.00 will be admissible prospectively if any consumer opt for e-

bill following regulation 3.1.10 of West Bengal Electricity Regulatory

Commission (Electricity Supply Code) Regulations, 2013. These rebates are

applicable after giving effect under paragraphs 7.2.4 and 7.2.5

7.2.10 Hatchery would be included under rate A (Cm-III) and Cinema Hall will be

treated as commercial consumer.

7.2.11 Power Factor Rebate/ Surcharge:

7.2.11.1 The power factor rebate and surcharge shall continue for those categories of

consumers to whom these are applicable at present and also for L&MV

industrial consumers under rate B-IDI and B-IDIT and under rates T(A), T(B)

and T(M). The rate of rebate and surcharge and the methods of calculation of

such rebate and surcharge for the year 2014-15 are given below:



160

7.2.11.2 The rebate and surcharge against different time periods shall be reflected in

the bill separately and shall be treated separately.

7.2.11.3 The above rates of rebate and surcharge against different time period shall be

applicable from the month of March, 2015. The rates of rebate and surcharge

as per tariff order for 2013 – 2014 shall be applicable upto the month of

February, 2015.

7.2.12 For short term supply, emergency supply and for supply of construction power,

there shall be no rebate or surcharge for load factor and power factor.

Power Factor (PF) Range

Power Factor Rebate & Surcharge on Energy Charge in Percentage for the year 2014-15

For Consumers under TOD Tariff For Consumers under non-TOD

Tariff Normal Period

(6.00 AM to 5.00 PM)

Peak Period (5.00 PM to 11.00

PM)

Off-peak Period (11.00 PM to 6.00

AM) Rebate

in % Surcharge in %

Rebate in %

Surcharge in %

Rebate in %

Surcharge in %

Rebate in %

Surcharge in %

PF > 0.99 7.00 0.00 8.00 0.00 6.00 0.00 5.00 0.00 PF > 0.98 & PF < 0.99 6.00 0.00 7.00 0.00 5.00 0.00 4.00 0.00 PF > 0.97 & PF < 0.98 5.00 0.00 6.00 0.00 4.00 0.00 3.00 0.00 PF > 0.96 & PF < 0.97 4.00 0.00 5.00 0.00 3.00 0.00 2.50 0.00 PF > 0.95 & PF < 0.96 3.00 0.00 4.00 0.00 2.00 0.00 2.00 0.00 PF > 0.94 & PF < 0.95 2.25 0.00 3.00 0.00 1.50 0.00 1.50 0.00 PF > 0.93 & PF < 0.94 1.50 0.00 2.00 0.00 1.00 0.00 1.00 0.00 PF > 0.92 & PF < 0.93 0.75 0.00 1.00 0.00 0.50 0.00 0.50 0.00 PF > 0.86 & PF < 0.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PF > 0.85 & PF < 0.86 0.00 1.00 0.00 1.25 0.00 0.75 0.00 0.75 PF > 0.84 & PF < 0.85 0.00 2.00 0.00 2.50 0.00 1.50 0.00 1.50 PF > 0.83 & PF < 0.84 0.00 2.50 0.00 3.25 0.00 1.75 0.00 1.75 PF > 0.82 & PF < 0.83 0.00 3.00 0.00 4.00 0.00 2.00 0.00 2.00 PF > 0.81 & PF < 0.82 0.00 4.00 0.00 5.00 0.00 3.00 0.00 2.50 PF > 0.80 & PF < 0.81 0.00 5.00 0.00 6.00 0.00 4.00 0.00 3.00 PF <0.80 0.00 6.00 0.00 7.00 0.00 5.00 0.00 3.50



161

7.2.13 Delayed payment surcharge shall be applicable as per regulation 4.14 of the

Tariff Regulations.

7.2.14 For irrigation tariff under Rate-C(b), North Bengal stands for the districts of

Coochbehar, Jalpaiguri, Darjeeling, North Dinajpur, South Dinajpur and Malda.

7.2.15 All existing charges relating to meter rent, meter testing, meter replacement,

fuse call charges, disconnection and reconnection etc. shall continue.

7.2.16 A consumer opting for pre-paid meter shall not be required to make any

security deposit for the energy charge.

7.2.17 All statutory levies like Electricity Duty or any other taxes, duties etc. imposed

by the State Govt. / Central Govt. or any other competent authority shall be

extra and shall not be a part of the tariff as determined under this tariff order.

7.2.18 All the rates and conditions of tariff are effective from 1st

i) tariff as declared under this order for 2014-15, and

April 2014 and

onwards. This rate will continue till further order of the Commission.

Adjustments, if any, for over recovery / under recovery for 2014 – 2015 from

the receipt till February, 2015 shall be made as per paragraph 7.2.19 below.

7.2.19 For 2014-15 the consumer/licensee shall have to pay/shall be refunded the

difference of the following two:

ii) what they actually already paid for the concerned period as tariff and the

MVCA, if any, for the concerned month.



162

Adjustments, if any, for over recovery / under recovery for 2014-15 from the

energy recipients shall be made in 12 (twelve) equal monthly installments

through subsequent energy bills and such adjustment will start from the

energy bill raised on or after 1st

7.2.23 For any pre-paid and TOD tariff scheme, other charges shall be the charges

applicable to the consumers under respective category of non-TOD tariff.

April, 2015.

7.2.20 There will be no separate monthly variable cost adjustment (MVCA) or Adhoc

FPPCA for WBSEDCL on and from 01.04.2014 till the date of issue of this

order. The MVCA or Adhoc FPPCA realized by WBSEDCL during the year

2014-15 shall be adjusted in computation of any adjustments for over/under

recovery from the energy recipients as mentioned in paragraph 7.2.19 above.

7.2.21 In addition to the tariff determined under this tariff order, WBSEDCL would be

further entitled to additional sums towards enhanced cost of fuel and power

purchase, if any, after the date from which this tariff order takes effect. Thus,

WBSEDCL shall also realize MVCA for any subsequent period after issuing

date of this order as per provisions of the Tariff Regulations based on the tariff

of this order. The fuel and power purchase cost shall be subject to adjustment

in accordance with the Tariff Regulations through FPPCA.

7.2.22 Optional TOD tariff scheme for LT Commercial, LT Industrial and LT Public

Water Works categories of consumers having minimum contract demand of 30

KVA, which was directed to be introduced in the Tariff Order for 2007-2008,

shall continue and energy charge under such scheme shall be computed

according to regulation 4.12 of the Tariff Regulations, wherever applicable, if

no tariff rates for such consumers are mentioned in the tariff schedule.



163

7.2.24 An applicant for short term supplies through pre-paid meter shall have to

comply with all necessary formalities for obtaining supply including payment in

accordance with the Regulations made by the Commission. The same will be

subject to the following conditions:

a) provision of requisite meter security deposit to be kept with licensee,

b) provision of space for installing weather-proof, safe and secure terminal

services apparatus to protect sophisticated meter; and

c) availability of prepaid-meter of appropriate capacity.

7.2.25 To avail the rate for street lighting with LED (Rate D (2)), the supply should be

metered and all the street lights under the same meter shall be illuminated

with LED. For mixed type of street lights under single meter the rate D(1) shall

be applicable.

7.2.26 For a consumer with prepaid meter who has purchased voucher prior to the

date of issue of this order, the existing voucher will continue till such voucher

is exhausted.

7.2.27 To reduce drawal of load in peak period and to shift the load to off-peak period

for 33 kV and 132 kV industrial consumers having monthly consumption above

1.0 MU a rebate equivalent to the difference of the following two has been

introduced:

i) Demand charge calculated as per regulation 4.3.6 of the Tariff

Regulations; and

ii) Demand charge computed based on the maximum demand of normal

period or maximum demand of peak period or contract demand in



164

case of off-peak period or 85% of contract demand whichever is

higher, if those industries keep their maximum demand during off-

peak period within 130% of contract demand.

The above rebate shall be effective prospectively from the month of March,

2015 subject to the condition that payment is made within the due date.

Similarly for the above consumers keeping their maximum demand during off-

peak period within 130% of contract demand, a rebate equivalent to the

difference of the following two has also been introduced:

i) Additional demand charge calculated as per regulation 4.7.2 of Tariff

Regulations; and

ii) Demand charge computed based on the methodology for additional

demand charge for the normal and peak period will be as per

regulation 4.7.2 of Tariff Regulations but there will be no additional

demand charge applicable for off-peak period.

The above rebate shall be effective prospectively from the month of March,

2015 subject to the condition that payment is made within the due date.

7.2.28 The tariffs determined under this order for different categories of consumers

are the maximum ceilings for supply of electricity at any agreed price to the

consumers of WBSEDCL only for those areas of supply of WBSEDCL where

multiple licensees exist. However, in this case if supply is provided to a

consumer at a price lesser than the upper ceiling, and as a result the licensee

incurs loss, such loss shall not be allowed to be passed on to any other

consumers or any other distribution licensees under purview of the

Commission.



165

7.2.29 No other rebate shall be applicable except which are specifically mentioned

under this order or in any regulation(s).

7.2.30 Any matter, which has not been explicitly mentioned in this order, shall be

guided by regulations 2.9.8 and 2.9.9 of the Tariff Regulations subject to

fulfilling condition under paragraph 7.2.28.

7.2.31 As there will be non un-metered connection in case of irrigation from 2015 –

2016, the rates for un-metered connection will be applicable uptill 31.03.2015

and thereafter only the metered connection Rates C(T) will be applicable in

case of irrigation connection till any subsequent tariff order. Accordingly, the

unmetered consumer will be shifted automatically to Rate C(T) unless and

until any such consumer specifically applies for any separate rate which may

otherwise be applicable to him.

7.3 WBSEDCL shall clearly indicate in the consumer/consumer’s bill (a) the

amount payable in terms of the tariff determined by the Commission (b) the

amount of the state government subsidy if any and (c) the net amount payable

as per provisions of the Tariff Regulations.

7.4 It is open to the State Government to grant any subsidy to any consumer or

any class of consumers in the tariff determined by the Commission for

WBSEDCL. If at all any such subsidy under the provisions of the Act is

intimated to WBSEDCL and to the Commission by the Government of West

Bengal with clear indication of the consumer or class of consumers to be

subsidized and the amount of the subsidy proposed to be given is paid in

advance, the tariff of such consumer and / or the class of consumers shall be

deemed to have been reduced accordingly as has been indicated by the State



166

Government. However, such direction of the State Government shall not be

operative till the payment is made by the State Government in accordance

with the provisions of the Act and the Regulations made thereunder, and the

tariff as fixed by the Commission shall remain applicable. In accordance with

the Tariff Regulations, the State Government is required to communicate

within 15 days from the date of receipt of a tariff order, whether it shall give

any subsidy to any group of consumers etc.

7.5 WBSEDCL shall present to the Commission a gist of this order in accordance

with regulation 2.9.6 of the Tariff Regulation within three working days from

the date of receipt of this order for approval of the Commission and on receipt

of the approval shall publish the approved gist in terms of aforesaid regulation

within four working days from the date of receipt of the approval of the

Commission.

Tariff Order of WBSEDCL for the year 2014-2015

Annexure-7A1


Energy Charge

P/kWh

1. Life Line (Domestic )

Rate A(DM-LL) 337 5

First 102 489Next 78 549Next 120 635Next 300 684Next 300 692

Above 900 859First 102 494Next 78 560Next 120 659Next 300 692Next 300 718

Above 900 859First 180 590Next 120 710Next 150 775Next 450 818

Above 900 867 All units 635 All units 605

First 180 592Next 120 712Next 150 775Next 450 818

Above 900 867 All units 635 All units 605

896

06.00 hrs to 17.00 hrs

Normal

Rate A(CM-R)T20

17.00 hrs to 23.00 hrs.

23.00 hrs to 06.00 hrs.

735

860Prepaid-

TOD

20 Rate A(Cm-U)T

All units

23.00 hrs to 06.00 hrs.

Normal - TOD All units

All units

20

23.00 hrs to 06.00 hrs.

Rate A(Cm-U)tpp 860

All units 735

896Prepaid -

TOD 17.00 hrs to 23.00 hrs.

06.00 hrs to 17.00 hrs

Fixed Charge/ Demand Charge *

in Rs/KVA/mon

17.00 hrs to 23.00 hrs.

NOT APPLICABLE


in Rs/KVA/mon

All units

20

NOT APPLICABLE

Name of the Tariff Scheme

Quarterly consumption in

KWH

06.00 hrs to 17.00 hrs

Energy Charge

P/kWh

All units

Consumer category

2.

5.

NormalRate A(CM-R)

All units

20

747

Sl No

Commercial (Urban)

Normal

Rate A(DM-U) Normal 10

23.00 hrs to 06.00 hrs.

Prepaid All units 613

06.00 hrs to 17.00 hrs

17.00 hrs to 23.00 hrs.

Rate A(Cm-R)tpp

747

20

All units

LOW AND MEDIUM VOLTAGE CONSUMERS

10 NOT APPLICABLE

Optional tariff Scheme

Optional Tariff Scheme - IIOptional Tariff Scheme – I

Prepaid


KWH

Consumer category

NOT APPLICABLE

10

Energy Charge P/kWh

Rate A(DM-R)PP

Quarterly consumption in KWH

Name of the Tariff

Scheme

10

3.

4.

Fixed Charge / Demand Charge *

in Rs/KVA/monType of Consumer

Applicable Tariff Scheme

0 to 75

Name of the Tariff

Scheme

Normal

Consumer category

Rate A(DM-R)

Commercial (Rural)

Rate A(CM-U)

Domestic (Rural)

Domestic (Urban)

Normal - TOD

Rate A(DM-U)PP

All units 613

Tariff Order of WBSEDCL for the year 2014-2015

Annexure-7A1


Energy Charge

P/kWh


in Rs/KVA/mon


in Rs/KVA/mon



KWH

Energy Charge

P/kWh

Consumer categorySl

No


Optional tariff Scheme

Optional Tariff Scheme - IIOptional Tariff Scheme – IQuarterly

consumption in KWH

Consumer category

Energy Charge P/kWh

Quarterly consumption in KWH

Name of the Tariff

Scheme

Fixed Charge / Demand Charge *

in Rs/KVA/monType of Consumer


Name of the Tariff

Scheme

Consumer category

On all units 635

On all units 694

In Municipal Area On all units 594

On all units 635

On all units 694

In Non Municipal Area

On all units 594

8. Government School Rate A(CM-I) 460 20

First 900 746

NOT APPLICABLE

Prepaid

Normal On all Units

54

Rate A(CM-PU) (MUN) PP

Prepaid

All units06.00 hrs to 17.00 hrs

On all Units

746

All units

17.00 hrs to 23.00 hrs. All units

All units

23.00 hrs to 06.00 hrs.

All units

Rate A(CM-II)

PPT12

712 17.00 hrs to 23.00 hrs. All units

Prepaid - TOD

746

569

On all Units

669

12

12

54

731

665

665

54

7.

Rate A(CM-PU)

(NON-MUN)

Rate A(CM-PU)

(MUN)

23.00 hrs to 06.00 hrs

06.00 hrs. – 17.00 hrs. & 20.00 hrs - 23.00 hrs.

06.00 hrs. – 17.00 hrs. & 20.00 hrs - 23.00 hrs.

17.00 hrs to 20.00 hrs.

23.00 hrs to 06.00 hrs

Prepaid - TOD

Prepaid - TOD6.

Public utility/ Specified Institution

Public Bodies

Rate A(CM-PU)

(NON-MUN) PP

Normal 675

NormalRate

A(Cm-PU) (Mun) ppt

Rate A(Cm-PU) (Non-Mun)

ppt54

On all Units 675 54

On all Units

Cottage Industry / Artisan / Weavers / Small production

oriented establishment not

run by electricity as motive power

Rate A(CM-II) Normal

Public utility/ Specified Institution

Public Bodies

NOT APPLICABLE

669

10.

54

12Rate

A(CM-III) PPT

Prepaid - TOD

23.00 hrs to 06.00 hrs.

06.00 hrs to 17.00 hrs

Normal

Poultry, Duckery, Horticulture, Tissue

culture, Floriculture, Herbal – Medicinal – Bio-

diesel Plant Farming, Food

Processing Unit

Rate A(CM-III)

300

Next 300

First

above 600

Above 900

9.

17.00 hrs to 20.00 hrs.

NOT APPLICABLE

626

626

731

Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2


Energy Charge

Energy Charge

P/kWh P/kWh

1. Lokdeep / Kutirjyoti Rate A(DM-K)

Rs. 46 per consumer per

month

2. Labour Line (Domestic )

Rate A(DM-L) 586 10

06.00 hrs to 17.00 hrs

All units 403 All

units 39317.00 hrs to 23.00 hrs.

All units 778 All

units 73523.00 hrs to

06.00 hrsAll

units 261 All units 279

4.

Irrigation pumping for Agriculture (Metered

supply from mixed HV feeder )

Rate C(A) 459 20

Rs 242 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 311 / KVA/ Month (but not less than Rs. 1500.00 per month )Rs 288 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 391 / KVA/ Month (but not less than Rs. 1800.00 per month)

Sl No

Consumer category

Fixed Charge/ Demand Charge*

in Rs/KVA/mon


in Rs/KVA/mon


Optional tariff SchemeOptional Tariff Scheme - II

Energy Charge P/kWh

Optional Tariff Scheme – IMonthly

consumption in KWHName of the Tariff Scheme

Consumer category

Monthly consumption in

KWH

Fixed Charge/ Demand Charge* in Rs/KVA/mon



KWHType of Consumer

Irrigation pumping for Agriculture (Un-

Metered)Normal


Consumer category

Name of the Tariff

Scheme

Rate C(T) Normal TOD

All units

Rate C(B)

Submersible in Other District

STW in Other District

Submersible in NB

Normal

Irrigation pumping for Agriculture (Metered)

STW in NB

Normal 0 to 25 NOT APPLICABLE NOT APPLICABLE

Normal All units NOT APPLICABLE

20

5.

3.

NOT APPLICABLE

20

17.00 hrs to 23.00 hrs.

23.00 hrs to 06.00 hrs

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE

Rate C(t)ppt

Prepaid - TOD

06.00 hrs to 17.00 hrs

NOT APPLICABLENOT APPLICABLE



Energy Charge

Energy Charge

P/kWh P/kWhSl No

Consumer category


in Rs/KVA/mon


in Rs/KVA/mon



Energy Charge P/kWh



Consumer category


KWH




KWHType of Consumer


Consumer category

Name of the Tariff

Scheme

06.00 hrs to

17.00 hrsAll

units 71817.00 hrs to 23.00 hrs.

All units 873

23.00 hrs to 06.00 hrs

All units 679

06.00 hrs to 17.00 hrs

All units 471

17.00 hrs to 23.00 hrs.

All units 849

23.00 hrs to 06.00 hrs

All units 303

06.00 hrs to 17.00 hrs

All units 718

17.00 hrs to 23.00 hrs.

All units 921

23.00 hrs to 06.00 hrs

All units 677

06.00 hrs to 17.00 hrs

All units 728

17.00 hrs to 23.00 hrs.

All units 796

23.00 hrs to 06.00 hrs

All units 685

46 NOT APPLICABLE

Rate C(T) - STIS 20Prepaid- TOD

Rate A(CM)-STCP

Prepaid - TOD

46

NOT APPLICABLEShort Term Irrigation Supply

Rate A(CM) - CP Prepaid- TOD

Short Term supply for Commercial Plantation

Commercial Plantation

7.

8.

6.

Prepaid- TOD

Rate A(ST) NOT APPLICABLE9. Short-term Supply 46 NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE



Energy Charge

Energy Charge

P/kWh P/kWhSl No

Consumer category


in Rs/KVA/mon


in Rs/KVA/mon



Energy Charge P/kWh



Consumer category


KWH




KWHType of Consumer


Consumer category

Name of the Tariff

Scheme

All Units 662

All Units 993

All Units 457

Next 1500 720 All Units

All Units 435

Next 1500 735 All Units 934

Above 2000 765 All Units 440

13. Street Lighting Rate D(1) 620 54

14. Street Lighting with LED Rate D(2) 436 54

NOT APPLICABLE

23.00 hrs to 06.00 hrs

06.00 hrs to 17.00 hrs

NOT APPLICABLE

NOT APPLICABLE

30

06.00 hrs to 17.00 hrs

659600

610

Above

30

745

All Units

92317.00 hrs to 23.00 hrs30

Normal - TOD

23.00 hrs to 06.00 hrs

17.00 hrs to 23.00 hrs

NOT APPLICABLE

NOT APPLICABLE

Rate B(I-U) t

667

Rate B(I-R) t

Normal - TOD

Normal

Rate B(I-U)

On all Units

First 500

Public Water Works & Sewerage System

NormalRate B(I-R)

First 500

2000

Normal On all Units

Normal

10.

Industry (Urban)

11. Industry (Rural)

12.

Rate B (II) 675On all Units

30

30Normal NOT APPLICABLE30

06.00 hrs. – 17.00 hrs. &

20.00 hrs - 23.00 hrs.

Rate B(II) tpp

Prepaid - TOD 17.00 hrs to

20.00 hrs.

23.00 hrs to 06.00 hrs

All Units

NOT APPLICABLE



Energy Charge

Energy Charge

P/kWh P/kWhSl No

Consumer category


in Rs/KVA/mon


in Rs/KVA/mon



Energy Charge P/kWh



Consumer category


KWH




KWHType of Consumer


Consumer category

Name of the Tariff

Scheme

On all Units 660

On all Units 721On all Units 617

06.00 hrs to 17.00 hrs

On all Units 742

17.00 hrs to 23.00 hrs

On all Units 903

23.00 hrs to 06.00 hrs

On all Units 702

06.00 hrs. – 17.00 hrs. & 20 .00 hrs to

23.00 hrs

On all Units 742

17.00 hrs to 20.00 hrs.

On all Units 903

23.00 hrs to 06.00 hrs

On all Units 702

NOT APPLICABLE

680On all Units

NOT APPLICABLE

54

23.00 hrs to 06.00 hrs

17.00 hrs to 20.00 hrs

Normal - TOD

06.00 hrs to 17.00 hrs & 20.00 hrs to 23.00 hrs

54

16.

17.

Rate D(5)

Construction Power Supply 46

Prepaid- TOD

Prepaid-TOD

46

Rate D(4)

Rate D(6)

Normal

Emergency Supply

Private Educational Institutions and

Hospitals15.

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLERate D(4) t



Energy Charge

Energy Charge

P/kWh P/kWhSl No

Consumer category


in Rs/KVA/mon


in Rs/KVA/mon



Energy Charge P/kWh



Consumer category


KWH




KWHType of Consumer


Consumer category

Name of the Tariff

Scheme

On all Units 649

On all Units 709

On all Units 596

06.00 hrs. – 17.00 hrs. & 20 .00 hrs to

23.00 hrs

On all Units 742

17.00 hrs to 20.00 hrs.

On all Units 903

23.00 hrs to 06.00 hrs

On all Units 702

On all Units 649On all Units 909On all Units 428On all Units 673On all Units 942On all Units 444On all Units 619On all Units 867On all Units 409On all Units 547On all Units 766On all Units 361

3017.00 hrs to 23.00 hrs.

23.00 hrs to 06.00 hrs

17.00 hrs to 23.00 hrs.

23.00 hrs to 06.00 hrs

23. 255

255

06.00 hrs. – 17.00 hrs.

23.00 hrs to 06.00 hrs

22. Domestic consumers

(50 KVA and above but upto 125 KVA)

Rate D- ID Normal All units 638 30 Rate C- IDT Normal TOD

06.00 hrs. – 17.00 hrs.

588All unitsNormal

Other than Industrial ,Commercial and

Domestic consumers (50 KVA and above but

upto 125 KVA)

Rate C- ID

06.00 hrs. – 17.00 hrs.

NOT APPLICABLE

255

Normal TOD

Normal - TOD 54

23.00 hrs to 06.00 hrs

06.00 hrs to 17.00 hrs

17.00 hrs to 23.00 hrs

Rate C- IDT 255Normal TOD

06.00 hrs. – 17.00 hrs.

17.00 hrs to 23.00 hrs.

23.00 hrs to 06.00 hrs

NOT APPLICABLE17.00 hrs to 23.00 hrs.

NOT APPLICABLE

Normal All units 54656

Bulk Supply at single point to Co-operative

Group Housing Society for providing power to its members or person for providing power to its employees in a single

premises

Rate D(7)18.

Note :- * Fixed Charge will be applicable for the Consumer having Contract Demand below 50 KVA and Demand Charge will be applicable for the consumer having Contract Demand of 50 KVA and above.

NOT APPLICABLERate D(7)t

NOT APPLICABLE

21. Commercial consumers (50 KVA and above but

upto 125 KVA)Rate B- IDC Normal

20. Industrial consumers

(50 KVA and above but upto 125 KVA)

Rate B- IDI Normal TOD255 Rate B- IDITNormal

Rate B- IDCT

657

All units 680

All units

46Prepaid - TOD

255

19. Common Services of Industrial Estate Rate D(8)

NOT APPLICABLE

Tariff Order of WBSEDCL for the year 2014 - 2015

Annexure-7A3


Demand Charge

Demand Charge

Summer Monsoon Winter Summer Monsoon Winter

06.00 hrs-17.00 hrs

&20.00 hrs-23.00 hrs

17.00 hrs-20.00 hrs All Units 895 892 88923.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-17.00 hrs

&20.00 hrs-23.00 hrs

17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 45506.00 hrs-17.00 hrs All Units 681 680 67917.00 hrs-23.00 hrs All Units 953 952 95123.00 hrs- 06.00 hrs All Units 450 449 44806.00 hrs-17.00 hrs All Units 653 651 64917.00 hrs-23.00 hrs All Units 934 931 92823.00 hrs- 06.00 hrs All Units 440 439 437

HIGH & EXTRA HIGH VOLTAGE CONSUMERS

Industries (11 KV)

Industries (33 KV)

320

Normal - TOD

595 593 591

581

Rate F(bt)

320

Normal - TOD

All Units 583

Rate E(BT)

3

320

2

4

Optional Tariff Scheme

Consumer category

Name of the Tariff

Scheme

Consumption per month in KWH

Energy Charge Energy Charge

320Normal - TOD


P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

612 610

Name of the Tariff

Scheme

Rate E(AT)

All Units

Sl No

Type of Consumer


1 All Units 614Rate E(A) 320NormalPublic Utility (11 KV)

(Rs./ KVA/ month)

667

320603 601

685

665 Normal - TOD 320

579

320

Rate F(AT)Public Utility (33 KV)

All Units

686

605

669

687

All Units

Rate F(B)

Rate E(B) Normal

Rate F(A) Normal

Normal

All Units


Annexure-7A3


Demand Charge

Demand Charge




Consumer category

Name of the Tariff

Scheme




P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

Name of the Tariff

Scheme

Sl No

Type of Consumer


(Rs./ KVA/ month)

06.00 hrs-17.00 hrs All Units 645 643 64117.00 hrs-23.00 hrs All Units 921 918 91523.00 hrs- 06.00 hrs All Units 434 432 431

06.00 hrs-17.00 hrs All Units 585 583 58117.00 hrs-23.00 hrs All Units 855 852 84923.00 hrs- 06.00 hrs All Units 400 399 39806.00 hrs-17.00 hrs All Units 565 563 56117.00 hrs-23.00 hrs All Units 827 824 82123.00 hrs- 06.00 hrs All Units 390 389 38806.00 hrs-17.00 hrs All Units 637 635 63617.00 hrs-23.00 hrs All Units 963 960 96223.00 hrs- 06.00 hrs All Units 356 354 35506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461

Industries (400 KV)

NOT APPLICABLE

667All Units

7

Rate H(BT)

29Rate S(GT)

Rate H(B) Normal

320Rate J(BT)

663

Rate S(CPT)9

5 Industries (132 KV)


Normal - TOD

Community Irrigation/ Irrigation

8 Normal - TOD

Industries (220KV) Rate I(BT) Normal -

TOD

Normal - TOD

6 NOT APPLICABLE

320

NOT APPLICABLE

Normal - TOD665

320

NOT APPLICABLE

320

320


Annexure-7A3


Demand Charge

Demand Charge




Consumer category

Name of the Tariff

Scheme




P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

Name of the Tariff

Scheme

Sl No

Type of Consumer


(Rs./ KVA/ month)

06.00 hrs-17.00 hrs All Units 677 673 67517.00 hrs-23.00 hrs All Units 1026 1020 102323.00 hrs- 06.00 hrs All Units 376 374 37506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461

06.00 hrs-17.00 hrs All Units 652 650 64817.00 hrs-23.00 hrs All Units 978 975 97223.00 hrs- 06.00 hrs All Units 372 370 36806.00 hrs-17.00 hrs All Units 650 649 64817.00 hrs-23.00 hrs All Units 975 974 97223.00 hrs- 06.00 hrs All Units 395 394 393

Rate S(CPT-ST) NOT APPLICABLE

NOT APPLICABLE

668 Normal - TOD

Rate E( CT ) 320

320Normal - TOD661663 320

Short Term Supply for


Rate F(CT)

All UnitsRate F( C ) 665

Short Term Irrigation Supply10

670All Units

11

13 Normal

Commercial (11 KV)

Rate E( C )12

Commercial (33 KV)

320

320

Rate S(GT-ST)

Normal

Normal - TOD

Normal - TOD

29

666


Annexure-7A3


Demand Charge

Demand Charge




Consumer category

Name of the Tariff

Scheme




P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

Name of the Tariff

Scheme

Sl No

Type of Consumer


(Rs./ KVA/ month)

06.00 hrs-17.00 hrs All Units 641 639 63717.00 hrs-23.00 hrs All Units 962 960 95823.00 hrs- 06.00 hrs All Units 386 384 38206.00 hrs-17.00 hrs All Units 667 665 66317.00 hrs-23.00 hrs All Units 750 748 74623.00 hrs- 06.00 hrs All Units 612 610 60906.00 hrs-

17.00 hrs &

20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 894 891 88823.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-

17.00 hrs &&

20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 454

610

659

Normal - TOD

320Normal - TOD

30

603

657

320

320

612 Rate E(PWT)

Normal - TOD

Rate H(CT)

30

320

Rate S(DT)

Normal - TOD

605Rate F(PW)

All Units 661Rate H(C)

17

688 686690

601

15

Public Water Works &

Sewerage (33 KV)

Normal All Units

All UnitsNormalPublic Water

Works & Sewerage

(11 KV)

All Units

614

14

16 Rate E (PW)

Domestic

Commercial (132 KV)

Normal

Normal

Rate S(D)

583 581 579

All Units

All Units

Rate F(PWT) 320

595 593 591320


Annexure-7A3


Demand Charge

Demand Charge




Consumer category

Name of the Tariff

Scheme




P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

Name of the Tariff

Scheme

Sl No

Type of Consumer


(Rs./ KVA/ month)


06.00 hrs-17.00 hrs All Units 697 695 693

17.00 hrs-23.00 hrs All Units 979 976 973

23.00 hrs- 06.00 hrs All Units 463 461 45906.00 hrs-

17.00 hrs & 20.00 hrs.- 23.00 hrs

All Units 697 695 69317.00 hrs-20.00 hrs All Units 979 976 97323.00 hrs-06.00 hrs All Units 463 461 459

NOT APPLICABLE

NOT APPLICABLE320

Sports Complex & Auditorium run by

Govt./ local bodies for

cultural affairs

Rate S(C )

Normal-TOD

Construction Power Supply

Rate S(CON)

Rate S(ES)

Normal-TOD

20

18

Cold storage or Dairies with

Chilling Plant

Rate S(F)19

Normal

320

All Units

581All Units 580Normal

29

320

695 693

579

21

Emergency Supply

696

NOT APPLICABLE

320Normal - TOD

Rate S(ft)


Annexure-7A3


Demand Charge

Demand Charge




Consumer category

Name of the Tariff

Scheme




P/kWhP/kWh

Consumer category

(Rs./ KVA/ month)

Name of the Tariff

Scheme

Sl No

Type of Consumer


(Rs./ KVA/ month)

06.00 hrs-17.00 hrs

All Units 682 680 67817.00 hrs-23.00 hrs

All Units 751 749 747

23.00 hrs- 06.00 hrs All Units 620 618 616

06.00 hrs-17.00 hrs & 20.00 hrs.- 23.00 hrs

All Units 717 715 713

17.00 hrs-20.00 hrs All Units 1004 1001 99823.00 hrs-06.00 hrs All Units 583 582 581

24 Traction (25 KV) Rate T (A) Normal 691 689 686 320

25 Traction (132 KV) Rate T (B) Normal 669 667 664 320

26 Metro Rail Rate T (M) Normal 693 688 683 8806.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 977 97523.00 hrs- 06.00 hrs All Units 463 461 459


All Units NOT APPLICABLE

Rate S(ST)

Rate E (ct-ei)

Normal - TOD320734 732 730

All Units

320

All Units 320

NOT APPLICABLE

NOT APPLICABLE

28 Private Educational Institutions

Rate E (C-EI) Normal

27 Short-term Supply Normal - TOD

All Units

Rate S(cot)

320Normal - TOD

Rate S(CO)

23Common Services

of Industrial Estate

Rate E (CT-CS)

22

Bulk Supply at single point to Co-operative Group Housing Society

for providing power to its members or person for

providing power to its employees

in a single premises

Normal 709 705707 29All Units

NOT APPLICABLE

NOT APPLICABLE

29Normal - TOD


CHAPTER – 8

DIRECTIONS


180

8.1 The Commission has given some direction in different paragraphs in Chapter 4

and Chapter 5 of this order while determining the fixed cost of WBSEDCL.

WBSEDCL shall comply with those directions. WBSEDCL shall also comply with

the following directions:

8.2 In view of the fact that WBSEDCL failed to submit their tariff application complete

in all respect for the fourth control period within the target date of 30th

The Commission has decided that in future any delay in submission of tariff

application by any distribution licensee for any control period beyond the 4

November,

2013 as per provisions of the Tariff Regulations thus for the said period no

carrying cost has been and will be provided for the enhanced part of the tariff

during 2014-15.

th

Further, it is also required to be noted that any delay with or without the approval

of the Commission in submission of either of the applications of APR or FPPCA

of any year (Y) within the target date as specified in the Tariff Regulations of the

following year may result into non-inclusion of the impact of APR and/or FPPCA

order in the concerned tariff order of the year Y+2. In such case, the impact will

be considered in any future year beyond (Y+2) year as applicable without any

control period or any year as applicable will result in not providing any increase in

tariff for equal number of days and thus the under recovery due to such measure

will not be allowed to be passed through any tariff mechanism or during truing up

in Annual Performance Review (APR) or Fuel & Power Purchase Cost

Adjustment (FPPCA). Moreover henceforth any delay in submission in APR or

FPPCA application shall not be considered as ground for delay by the licensee

for submission of tariff application.



181

allowance for carrying cost, if otherwise applicable. Thus, in filing of

application(s) / petition(s), the licensee is required to maintain the relevant time

schedule(s) as specified in the Tariff Regulations.

It may be further noted that the arrear amount that is to be recovered in a single

or number of installments as will be determined by the Commission for any

financial year due to issuance of delayed tariff order as consequence to delayed

submission of tariff application by the licensee will not be provided with any

carrying cost.

The Commission also observed that during truing up in the APR order of the

distribution licensees and in the Fuel Cost Adjustment (FCA) of the generating

company, a considerable amount is further recoverable by the licensees and the

generating company even after realization of MVCA or MFCA during the year. It

appears that the distribution licensees and the generating company have failed to

understand the true spirit of introduction of the MVCA and MFCA and they are

not considering the eligible cost in computation of their MVCA or MFCA as per

the formula specified in the Tariff Regulations properly. The Commission in terms

of regulation 5.8.12 of the Tariff Regulations directs WBSEDCL to compute their

MVCA taking into consideration the related cost in its true sense keeping in their

mind the true spirit of introduction of such monthly adjustment failing which the

Commission will think not to allow such adjustment in full in future or not to pass

the amount as found recoverable on account of FPPCA during truing up in APR

for WBSEDCL.

8.3 WBSEDCL shall note that as already MVCA has been introduced thus the

amount that be claimed in FPPCA at the end of any year is not expected to be

higher than the summated value of following factors:



182

i) impact due to rounding off as per note (f) under the sub- paragraph (e)

of paragraph (A) of Schedule - 7B of the Tariff Regulations against the

applicable MVCA for the month of February and March of that year,

ii) impact due to non-recovery of any additional fuel cost of March of any

year over and above what is recovered on the basis of MVCA as

calculated from data of February due to the fact that MVCA calculated

on the basis of data of March is become applicable for next financial year

only, and

iii) impact due to application of disallowance of cost as per FPPCA formula

at FPPCA determination stage.

Thus in such case if recoverable amount under FPPCA of any year is found to be

higher than the above referred summated value, then such excess amount will

be dealt as per direction already issued by the Commission vide its order in case

no. SM-10/14-15 dated 18.07.2014. In this context it is also to be noted that such

excess amount represent the amount that would have been collected through

MVCA and thus not raising of such bill may result into distorted merit order

dispatch in the system. In fact, by virtue of this type of practice there is high

possibility of vitiating the environment of merit order dispatch in the whole supply

chain in West Bengal power sector and thereby affecting the economic load

dispatch in the systems. As a result ultimate sufferer will be the retail consumers

of West Bengal. In view of the above discussions, no carrying cost will be

allowed by the Commission in case of creation of such excess amount as

regulatory asset through FPPCA. Whenever such excess amount is released in

number of installments then also it will not be entitled to any carrying cost.

However, this direction shall not be construed as an approval of such delayed



183

claim of excess fuel cost through FPPCA instead of MVCA and such matter will

be dealt as per direction already issued by the Commission vide its order in case

no. SM-10/14-15 dated 18.07.2014.

8.4 While declaring MVCA for any month henceforth WBSEDCL shall follow the

following directions:

a) Irrespective of change in MVCA in any month from the previous month,

the detailed calculation sheet of MVCA prepared for the purpose of

determination of MVCA for that month as per regulation 5.8.9 of the Tariff

Regulations shall be submitted to the Commission within seven days of

notification of the MVCA or in case of no notification within thirty days

after the end of the month under consideration for MVCA. Such

calculation sheet shall also specifically mention the received fuel bill

which has not been considered or partly considered in the said MVCA in

pursuance to note (g) under sub- paragraph (e) of paragraph A of

Schedule – 7B of the Tariff Regulations. WBSEDCL shall also upload

such calculation sheet in their web-site for each month and shall maintain

the same in the website till publication of the worksheet for the next

month.

b) In continuation of earlier order in case no: WBERC/A-35/2 dated 19-02-

2014 Commission again reiterated that WBSEDCL will publish the

notification of change of MVCA in terms of 4th paragraph of regulation

5.8.9 of Tariff Regulations in such daily newspapers which are widely

circulated in West Bengal. Any deviation in this regard will be seriously

viewed.



184

8.5 While submitting the Fuel and Power Purchase Cost Adjustment (FPPCA)

application for any year WBSEDCL shall give a list of fuel bill or power purchase

bill which has not been claimed under MVCA calculation along with the

provisions of the Tariff Regulations under which such claim has not been done.

A further reconciliation statement shall be given to establish that WBSEDCL has

followed the direction of paragraphs 8.3 and. 8.4 above effectively.

In case of non submission of the above documents/ information the application of

APR will not be admitted.

8.6 While computing the renewable and cogeneration purchase obligations, the

energy generated from Solar roof-top photovoltaic power plants shall be

considered by any distribution licensee both on consumption side and as input

energy from renewable sources towards fulfillment of renewable and

cogeneration purchase obligations in terms of the Electricity Act, 2003 and the

relevant Regulations. The licensee is required to furnish suitable details in this

respect.

8.7 WBSEDCL shall submit a report within 01.10.2015 on the following issues:

i) Implementation problem in removing minimum 30 KVA load criterion on

eligibility for TOD conversion.

ii) Possibility of shifting of load of drinking water pumping station, drainage

station and other utility services to non-peak hours through TOD and

other Demand Side Management strategy.



185

8.8 In the notes of Financial statement of Annual Accounts of 2014-15 and onward or

through Auditor’s Certificate, the following information is to be provided by

WBSEDCL in a manner as described below:

a) All the expenditure or cost element considered under tariff applications

are to be provided separately for distribution function and generation

function for the regulatory requirement.

b) The penalty, fine and compensation under Electricity Act 2003 shall also

be shown separately for distribution function and generation function.

c) Any fine, penalty or compensation in any other statute other than

Electricity Act 2003 shall be mentioned separately for distribution

function and generation function respectively along with the reference of

the statute.

d) The figure of AT & C loss for the years concerned in line with the

computation methodology as specified in Form 1.8 of the Tariff

Regulations is to be provided. Beside that AT&C loss calculated with

arrear recovery done for the period prior to the year for which the

account is prepared shall also be shown separately.

e) In the notes of the past Annual Accounts, Repair & Maintenance is shown

in three separate heads of distribution & metering, generation and other

heads. In future from Annual Accounts of 2014-15 and onward this ‘other

heads‘ to be specified in terms of specific activities.

In case of non submission of the above documents/ information the application of

APR will not be admitted.



186

8.9 While submitting APR application of any ensuing year, WBSEDCL shall submit

the certificate from the statutory auditor of the annual accounts of the said year

for the following parameters:

a) Based on fixed asset register the parameters to be submitted are:

i) The distribution line length and transmission line (if any which is

essential part of distribution system as per section 2(72) of

Electricity Act 2003) length in CKM for each level of Voltage

related to the assets of WBSEDCL. For the asset which is not

owned by the WBSEDCL but maintained by WBSEDCL shall be

shown separately.

ii) Similarly the number of transformers and total installed capacity of

transformers in MVA or KVA for each category of transformers for

distribution system are to be provided.

b) For the year concerned under the APR the actual number of Consumers,

the consumption level in MU and total connected load in KVA for each

category of consumers on whom the tariff rate has been issued in the

tariff order of the year corresponding to the APR under consideration.

c) The figure of distribution loss and AT&C loss for the year concerned

under APR as per form 1.7 and 1.8 of the Tariff Regulations. Since such

value has not been given for 2011-12 and 2012-13 thus such value may

be submitted with the APR application of 2013-14.



187

d) List of expenditure arisen on account of penalty, fine and compensation

due to non-compliance of any statute or statutory order along with the

reasons for each such type of penalty, fine and compensation.

e) A statement showing the manpower engaged in different field of activity

which is now outsourced partly or fully vis-à-vis the manpower engaged

from regular establishment against the respective field of activities.

f) Copies of the audited accounts of all the terminal benefit funds for the

year for which APR is under consideration in a complete shape and not

by any selective pages.

g) A statement showing monthly deposition in different terminal funds for the

year for which APR is under consideration in persuasion to the direction

given in paragraph 8.12 below.

h) The detail breakup of number of vehicles that covers all the three shifts of

a customer care centre, number of vehicles that covers only two shifts of

a customer care centre and number of vehicles that covers only one

shift of a customer care centre along with the respective expenditures

for such each category. Also give the number of total number of

Customer care centre and customer care center having Urban areas as

per definition in regulation 2.1(xxv) of SOP Regulations. The above

information shall be submitted in relation to MCSU services. For hiring

vehicle for high voltage services such data shall be submitted separately.

i) A detail breakup showing total expenditure and employee strength

against each level of all categories of employees including the whole

time directors of the board. If any director or employee discharge any



188

function of other companies also then the allocation of cost among the

companies shall be shown separately and distinctly against each level.

j) Henceforth with the application of APR, WBSEDCL shall also enclose

their compliance report on Renewable Purchase Obligation of power in

pursuance to clause 8 of the West Bengal Electricity Regulatory

Commission (Cogeneration and Generation of Electricity from

Renewable Sources of Energy) Regulations, 2013 or any of its

subsequent amendment or replacement in future.

In case of non submission of the above documents the application of APR will

not be admitted.

8.10 In case of expenditure at a level higher than the admitted amount under any

uncontrollable factor in this tariff order on account of fixed charges, while

submitting APR application of any ensuing year WBSEDCL has to justify such

higher expenditure in detail with supporting documents and evidence on the

basis of which the Commission will take its decision during truing up exercise and

it may be noted that without sufficient justification the excess expenditure may

not be admitted in the APR fully or partly. Similarly for controllable factors, where

applicable as per the Tariff Regulations, for the same reasons supporting

documents and evidence is to be submitted to justify their claim. While truing up

any uncontrollable factor on account of fixed charges, the actual business

volume parameter (Distribution line length or consumer strength) and actual

inflation rate to which such uncontrollable item is sensitive will be considered in

the same manner and principle as determined under the tariff order subject to the

limitation as per the Tariff Regulations. However, where applicable as per this

tariff order the ratio of expenses increase in % on any item and the sensitivity

parameter increase will remain the same as that of this tariff order.



189

8.11 While submitting application for APR of 2014-15 and onwards by any licensee, if

such application shows any net claim for that year after considering the

concerned FPPCA, then in such case the licensee shall suggest in specific terms

the ensuing year(s) in which they intend to recover such claim and by what

amount. The Licensee shall also show the consequential impact of such recovery

in the expected average cost of supply in those ensuing years after considering

the total revenue recoverable through the tariff. The total revenue recoverable

through the tariff means the summated amount of the Net Aggregate Revenue

Requirement plus all other amount on account of any release of regulatory asset,

FPPCA and APR of its own and FCA of WBPDCL as applicable for any year

which is being already decided by the Commission in earlier orders. They shall

also mention the carrying cost, if necessary, where it is applicable in terms of the

Tariff Regulations and different orders and direction of the Commission in this

respect. This consequential impact on tariff shall also be provided in the gist of

the APR application.

In case of non submission of the above information the application of APR will

not be admitted.

8.12 The fund released for terminal benefit fund in the ensuing year of 4th

Rs. in lakh

control

period are as follows:

Sl No Particulars 2014-15 2015-16 2016-17 1 Interest on bonds for Terminal Benefits to employees 13005.00 13005.00 13005.00

2 Release of Regulatory Asset for terminal benefit as mentioned in paragraph 6.2(v) of this MYT order

4703.68 36000.00 31000.00

3 Terminal benefits as per MYT order of 4th34785.50 control

period 37629.45 43072.49

Total 52494.18 86634.45 87077.49



190

In order to ensure that in future actuarial valuation of terminal benefit fund can be

kept in control in a better way by avoiding carrying cost of such liability in future

the following is to be adhered to:

a) WBSEDCL shall ensure that henceforth at least one-twelfth of the amount

on account of terminal benefit as shown in serial no. 1 of the table above,

as a part of employee cost admitted in the tariff order, is to be deposited

in different terminal benefit funds every month as a first charge item. This

process will also continue beyond 2014 – 2015 till issuance of next tariff

order.

b) It is to be noted that regulatory release of terminal benefit amount under

Sl. No. 2 of above table being a component of arrear amount recoverable

through number of installments, such amount is to be deposited in the

terminal benefit funds prospectively. The amount deposited in terminal

benefit fund from such arrear recovery in each future year shall also be

commensurating with the arrear recovered in that particular year on

monthly basis

c) WBSEDCL shall ensure that henceforth the amount that is statutorily

required to be deposited in a month in different fund on account of

terminal benefit as shown in sl. No. 3 of the table above, as a part of

employee cost admitted in the tariff order, is to be deposited in different

terminal benefit funds every month as a first charge item. This process

will also continue beyond 2014 – 2015 till issuance of next tariff order.

d) On the head of terminal benefit fund, if there is shortage in the deposit

amount in the terminal benefit fund admitted in employee cost through

this order, the balance amount of contribution to terminal benefit fund is



191

required to be deposited as first charge item over and above what had

already been deposited for the year 2014-15, from the effective date of

recovery of the recoverable amount against this order from the very first

day. So, it is directed that the balance amount of contribution as

discussed above to terminal benefit fund for the year 2014-15, i.e., the

difference between the amount of contribution to terminal benefit funds as

allowed in this order as a part of employee cost and that has already

been deposited in the fund for the year 2014-15 as is to be deposited in

the respective different terminal benefit funds. Such balance amount is to

be deposited in different terminal benefit funds in not more than 12

monthly equal installments from the date on which the recovery through

tariff against this order will start.

e) While submitting application for APR of 2014 – 2015, 2015-16 and 2016-

17, WBSEDCL shall show through audited accounts of different terminal

benefit funds that the contribution to the different terminal benefit funds

during the concerned year as a part of employee cost is duly deposited in

the terminal benefit funds.

In case of non-deposition of amount admitted for terminal benefit fund as

provided in (a) to (e) above in the respective fund as directed above,

Commission may withhold or deduct same amount equivalent to amount of non-

deposition.

8.13 In this tariff order it is considered that all type of compensation (as shown under

note no 27 of the Annual Accounts 2012-13) is the part of the other administrative & general expenses except Compensation to consumer. Similarly

loss on obsolete stores etc has also been considered as expenditure under Other



192

Administrative & General Expenses. Separately no such claim should be lodged

by WBSEDCL and compensation to consumers can never be claimed.

8.14 In view of two part tariff suggested by WBSEDCL for sale of power to CESC

Limited/DPSCL, the Commission has introduced two part tariff for purchase of

power by CESC Limited/DPSCL from WBSEDCL with a direction that WBSEDCL

shall enter into revised power purchase/sale agreement with CESC

Limited/DPSCL under regulation 7.3.1 of the Tariff Regulations in replacement of

the existing power purchase agreement. In the said two part tariff one part will be

fixed charge and other part will be energy charge. While two-part tariff structure

as determined under this tariff order is allowed at present from 01.03.2015 for

supply by WBSEDCL, there will be a reversion to single part tariff structure

unless the draft agreement as agreed by both WBSEDCL and CESC

Limited/DPSCL is submitted by CESC Limited/DPSCL to the Commission within

three months of the issue of this order.

The above agreement shall at least cover the following points:

i) The PPA shall mention clearly that the sale of power by WBSEDCL to

CESC Limited/DPSCL is in generation mode or trading mode or any other

mode that is permitted under Electricity Act 2003.

ii) The above PPA shall have an appropriate provision by which CESC

Limited/DPSCL shall give its requisitioned capacity for every year that

may be suitably fixed as terms and conditions of the PPA.

iii) Such agreement shall also have a provision containing the price and

other associated terms and conditions inclusive of tenure of agreement



193

for drawal of power by CESC Limited/DPSCL over and above the

contracted amount of the month in case of exigencies.

iv) As two part tariff has been introduced for purchase of power by CESC

Limited/DPSCL from WBSEDCL, thus in view of the skewed demand

pattern in CESC Limited’s/DPSCL’s area of supply, CESC

Limited/DPSCL shall try to sell power through trade mechanism under

any agreement (long term, short term or mid-term arrangement) to any

third party to reduce periods of idle capacity in a manner as permitted

under different regulations and Act. To protect the interest of all

stakeholder appropriate coverage of this issue shall be included in the

power purchase agreement as mentioned above and WBSEDCL shall be

obligated to supply energy whenever CESC Limited/DPSCL requisitions

such energy as per contracted capacity. The extent of such obligation

shall be clearly spelt out in the PPA in specific terms without keeping any

scope of interpretation. The agreement shall also provide for appropriate

consequences for failure to do so in a manner as is being safeguarded

under agreement between a generator and a licensee under two part tariff

mechanism.

v) In case WBSEDCL exceeds its renewable and cogeneration purchase

obligations in any year through purchase or otherwise in terms of the

relevant regulations, the agreement shall provide for a suitable

mechanism of transfer of such energy to CESC Limited/DPSCL by

assigning a part of the energy sold to CESC Limited/DPSCL by

WBSEDCL as contribution from non-conventional energy sources. The

Commission has taken this view as most of the renewable and

cogeneration sources being located outside the urban licensed area of



194

CESC Limited and DPSCL area and thus accessibility of renewable and

co-generation sources to CESC Limited/DPSCL is very limited. It will help

CESC Limited/DPSCL to meet their renewable and cogeneration

purchase obligation as CESC’s license area being an urbanized area and

as DPSCL is with a small licensed area resulting to both having less

potential of renewable and cogeneration sources. For sake of equity in

case of excess renewable and co-generation energy available with CESC

Limited/DPSCL then that can also be sold to WBSEDCL if WBSEDCL

requires so.

vi) The fixed charges payable by CESC Limited during the years 2014 –

2015, 2015 – 2016 and 2016 – 2017 are given in Annexure – 6E as per

this tariff order on the basis of agreed annual maximum drawal of 620

MW, 330 MW and 385 MW respectively for CESC Limited. In case as per

terms and conditions of the proposed PPA such agreed maximum drawal

is increased or decreased for any of the year then the monthly fixed

charge of that year mentioned above will be accordingly increased or

decreased in proportion to the increase or decrease in agreed annual

maximum drawal. Such changed fixed charge is to be incorporated in the

said PPA with reference to this direction and Annexure 6E of this order.

vii) The fixed charges payable by DPSCL during the years 2014 – 2015,

2015 – 2016 and 2016 – 2017 are given in Annexure – 6G as per this

tariff order on the basis of agreed annual maximum drawal of 85 MW

each year for DPSCL. In case, as per terms and conditions of the

proposed PPA such agreed maximum drawal is increased or decreased

for any of the year then the monthly fixed charge of that year mentioned

above will be accordingly increased or decreased in proportion to the



195

increase or decrease in agreed annual maximum drawal. Such changed

fixed charge is to be incorporated in the said PPA with reference to this

direction and Annexure 6G of this order.

Before execution of such agreement the draft agreement shall be submitted to

the Commission for scrutiny and approval. The approval will be accorded after

inviting suggestion and objection from the stakeholders and consideration of the

same. Only after getting such approval the agreement shall be executed.

8.15 In past number of distribution projects (such as APDRP, R-APDRP Part A) have

been undertaken where distribution loss reduction was targeted. Commission

directs that WBSEDCL shall prepare a report on such projects about

achievement and the learning from such project after post completion study of

the project. WBSEDCL has to also mention clearly the steps they are

undertaking from the experience of the earlier projects in their new but similar

types of projects such as R-APDRP part B project so that distribution loss

reduction target as envisaged in the project can be achieved. Such report shall

be submitted to the Commission alongwith the APR application for 2014-15 and

on the basis of that Commission will provide directions that in case of failure to

achieve the distribution loss target as envisaged in the project what the penal

measures will be.

8.16 Commission hereby directs that for interruption benefit calculation for HV & EHV

consumer henceforth WBSEDCL shall calculate such benefit on the basis of

interruption recorded in the outgoing feeder meter at the sub-station end.

However, in case of non-supply of electricity due to outages arising out of any

problem at the down-stream of the substation such outage as available from non-

supply of power recorded in the MRI records of the consumer meter shall also be

considered subject to condition that such outage is reported to the WBSEDCL



196

and shall be counted for the period from time of reporting and restoration of the

outage by WBSEDCL.

8.17 From fourth control period the expenses on Complaint Management Mechanism,

collective expenses and lease rental expenses will be treated as Controllable

factor.

8.18 Every day by 11.30 a.m. WBSEDCL shall upload its initial drawal schedule as

per the format under Annexure – IV and also initial injection schedule (i.e.,

schedule of Actual Declared Capacity and Notional Declared Capacity including

the drawal schedule of Purulia Pumped Storage Project) in accordance with the

prevailing State Grid Code framed by WBERC for the next day in their website. If

necessary, for proper representation of the schedule in the website the format

can be altered with approval of the Commission. This schedule shall be kept in

the website till two months after the date of the order of the APR or FPPCA

whichever is later in relation to the year concerned to the day under discussion.

The website design shall be such so that the schedule of any date can be easily

fetched. This facility is to be made operational from 1st of April, 2015. WBSEDCL

is also directed to upload such schedule of every day from 1st April, 2014 to 31st

March, 2015 within 1st June 2015. This direction has been issued for sake of

transparency and to protect the interest of all the stakeholders in large

8.19 The Commission is statutorily duty bound to promote generation of electricity

from following sources of energy:

i) Co-generation of electricity from renewable sources.

ii) Co-generation of electricity from fossil fuel sources.



197

iii) Co-generation of electricity from hybrid sources of fossil fuel /

conventional sources and renewable sources.

iv) Electricity generation from renewable sources.

In order to promote above mentioned type of generation of electricity by applying

regulations 8.3 and 8.4 of the Tariff Regulations and regulations 19.1 and 19.2 of

the West Bengal Electricity Regulatory Commission (Cogeneration and

Generation of Electricity from Renewable Sources of Energy) Regulations, 2013,

the Commission decides that from the APR of the ensuing year 2016 – 2017 a

deduction of 5% from Return on Equity will be done if WBSEDCL fails to comply

with the Renewable Purchase Obligation as per West Bengal Electricity

Regulatory Commission (Cogeneration and Generation of Electricity from

Renewable Sources of Energy) Regulations, 2013 or any of its subsequent

amendment. In this context, the Commission also directs that henceforth

WBSEDCL shall advertise on important national media inviting the interested

parties of supplying renewable and cogeneration electricity on every four months

for next two years instead of one time in a year in pursuance to the regulation 3.5

of the said Regulations.

8.20 Henceforth, any application for Power Purchase Agreement (PPA), except for

short term PPA meaning PPA for a period not exceeding one year, submitted by

any licensee to the Commission for approval of the PPA shall go through the

process of inviting suggestions and objections from all stakeholders through at

least three widely circulated newspaper publication for consideration of the

Commission of all such suggestions and objections as a process of the approval

procedure and subsequent to such approval only, the PPA can be executed by

the licensee and the seller of the power. For this purpose, while submitting the



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said PPA the licensee shall also give a draft gist for newspaper publication for

approval of the Commission. On getting approval of the Commission such gist

shall be published in the newspapers within 5 working days. Such gist shall also

be posted in the website along with the application and PPA from the date of gist

publication to at least the last date of submission of suggestions and objections

as will be mentioned in the gist. The gist shall cover the name of seller of the

power, type of specific source (such as coal, gas, hydro, solar, etc.), major

important parameters that are required under the Tariff Regulations for such

purchase and the important points of the purpose of such procurement. The

application submitted shall have the above points of the gist along with detailed

justification of such proposed procurement along with all the information and

parameters that are required under the Tariff Regulations or Regulations of the

Commission related to renewable and cogeneration sources of energy. The

application shall also clearly spell that how the interest of the consumer as well

as of the licensee has been safeguarded in the PPA. The application without

such gist and the points as mentioned shall not be admitted. This process is

done in order to meet the end of justice after keeping consistency with the

Electricity Act, 2003.

8.21 While submitting application of APR WBSEDCL shall also submit a detailed

calculation showing that revenue collected against the supply of electricity to

consumers at a rate below the tariff of this order in pursuance to the application

of paragraph 7.2.27 and concerned clauses of Tariff Regulations satisfying the

condition that the consumers covered by application of such paragraph through

the notification dated 23.09.2014 published by WBSEDCL have been supplied

electricity at a price not below the cost of supply to them and revenue recovered

from them is commensurating with such price as well as their consumption.



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WBSEDCL has also to establish that no loss on this head has been passed to

other consumers through the ARR determination process in the APR.

8.22 The cost of meter reading and billing paid to New Town shall be on transaction

basis. Accordingly, the agreement between WBSEDCL and its franchise shall be

amended.

8.23 As UI charge has been repealed and deviation charge is being introduced, the

Commission by applying regulation 8.3 of this Tariff Regulations will consider

N_UI_R as zero for applying the regulation 2.6.10 of the Tariff Regulations during

APR order for any ensuing year of the fourth control period.

8.24 The anomalies as mentioned in paragraph 3.7.2 shall be corrected and

accordingly the related information in requisite formats of Tariff Regulations shall

be submitted after considering the changes in actual consumption mix atleast

upto 2014 – 2015 in pursuance to paragraph (xi) of regulation 2.5.3 of the Tariff

Regulations along with APR for 2014 – 2015.

8.25 All the distribution licensees and generating companies shall follow regulation

5.6.5.1 of the Tariff Regulations in its true spirit. According to regulation 5.6.5.1 of

the Tariff Regulations the interest on working capital requirement of a generating

company or a licensee shall be assessed on normative basis @ 18% on a base

amount derived by summation of annual fixed charges, fuel cost and power

purchase cost reduced by certain elements of the ARR. It has also been

mentioned there that where Monthly Fuel Cost Adjustment (MFCA) or Monthly

Variable Cost Adjustment (MVCA) exists, in that case for interest on working

capital requirement the above normative basis shall be 10% instead of 18% on

the said base amount. In this context it may be noted by all stakeholders that any

distribution licensee or generating company on which collection of MFCA and



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MVCA, as the case may be, is applicable as per Tariff Regulations, shall not be

entitled to claim interest on the above referred normative basis of 18% even on

the plea of not claiming MFCA or MVCA throughout any financial year.

Sd/- SUJIT DASGUPTA

MEMBER

DATE: 04.03.2015

Documents

West Bengal Electricity Regulatory Commission TO...West Bengal Electricity Regulatory Commission Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff