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Karnataka Electricity Regulatory Commission
6th& 7th Floors, Mahalaxmi Chambers
No.9/2, Mahatma Gandhi Road, Bengaluru - 560 001
Tel: 080 – 25320213 / 214, 25320339, 25323765
Fax: 080 – 25320338
Email: kerc-ka@nic.in
Website: www.karnataka.gov.in/kerc
2015-16
Seventeenth
Annual
Report
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 2
KARNATAKA ELECTRICITY REGULATORY COMMISSION
SEVENTEENTH
ANNUAL REPORT
2015– 16
6th& 7th Floors, Mahalaxmi Chambers
No.9/2, Mahatma Gandhi Road, Bengaluru - 560 001 Tel: 080 – 25320213 / 214, 25320339, 25323765, Fax: 080 – 25320338 Email: kerc-ka@nic.in Website: www.karnataka.gov.in/kerc
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 3
C O N T E N T S
SL.NO. PARTICULARS PAGE No.
1 Foreword 4
2 Introduction 6
3 The Commission & its functions 7-9
4 The Commission’s Office & Functions of the
Secretary
10-14
5 Power Sector- An Overview 15-16
6 Important events during the year 17-34
7 Activities of the Commission in 2015-16 36-58
8 Advisory Committee of the Commission 60-61
9 Implementation of the RTI Act 13
10 Budget and actual expenditure of the
Commission
12
11 Administration 12
12 Commission’s Court Proceedings 63-65
13 Consumer Grievances Redressal 66-68
14 Program for the year ahead 70-71
15 Implementation of Kannada in the Commission 14
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2016
Karnataka Electricity Regulatory Commission Page 4
KARNATAKA ELECTRICITY REGULATORY COMMISSION
M.K. SHANKARALINGE GOWDA, IAS (RTD)
CHAIRMAN
6th & 7th Floors,
Mahalaxmi Chambers,
#9/2, M.G.Road,
Bengaluru-560 001
FOREWORD
It gives me an immense pleasure to present this Seventeenth Annual Report for the
Financial Year (FY) 2015-16 of the Karnataka Electricity Regulatory Commission, as
envisaged by the section 105 of the Electricity Act, 2003. The report also provides a
summary of the Commission’s budget and the actual expenditure for the FY2015-16. It
delineates the activities of the Commission during FY2015-16, in addition to planned
activities for ensuing FY2016-17.
The Commission had issued Multi Year Tariff Orders for One Transmission Company,
Five Distribution Companies, Two Special Economic Zones and One Rural Electric Co-
operative Society for the period FY17-FY19, along with the Annual Performance Review for
the FY15, and revision of retail supply tariff for the FY17. The Commission had issued Grid
Code, Distribution Code and draft Regulations on Forecasting, Scheduling, Deviation
Settlement Mechanism in respect of Wind and Solar generation. The Commission had
issued the draft amendment Regulations on Multi Year Tariff determination for transmission
and distribution-licensees.
During the year I had assumed charge as Chairman of the Commission. My
colleague Members Sri H.D.Arun Kumar and Sri D.B.Manival Raju, have ably supported me
in discharging functions of the Commission. The officers, members of staff and the
consultants, ably assisted the Commission in carrying out various activities.
Also, I place on record the support and advice provided by the Members of the
Advisory Committee, the Utilities and the Stakeholders.
M.K. SHANKARALINGE GOWDA, IAS (Rtd),
CHAIRMAN
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2016
Karnataka Electricity Regulatory Commission Page 5
Brief History
of
Karnataka Electricity Regulatory Commission
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2016
Karnataka Electricity Regulatory Commission Page 6
2. INTRODUCTION
The Karnataka Electricity Regulatory Commission (KERC) was established in
1999 and began functioning from 15th November, 1999. The establishment of
the Karnataka Electricity Regulatory Commission was in accordance with the
provisions of Karnataka Electricity Reform Act, 1999. The KERC has continued
to function under the Electricity Act, 2003 which was enacted by the
parliament and notified on 10th June, 2003 by the Government of India.
As per Section 105(1) of the Electricity Act 2003, the KERC is required to
prepare an Annual Report, giving a summary of its activities during the
previous year, the copies of which are to be forwarded to the State
Government. Further, as per Section 105(2) of the Electricity Act 2003, these
Annual Reports are to be laid before the State Legislature.
This is the Seventeenth Annual Report of the Commission. It includes summary
of the activities of the Commission during the financial year 2015-16 and the
proposed program for the financial year ahead i.e. 2016-17. The report also
contains the Budget for the financial year 2016-17 and the actual
expenditure for the financial year 2015-16.
During the financial year 2015-16, the Commission has issued Tariff Orders for
Financial Year 2016-17 in respect of the Transmission and Distribution utilities
and Special Economic Zone (SEZ) namely, Karnataka Power Transmission
Corporation Ltd; Bangalore Electricity Supply Company Ltd, Mangalore
Electricity Supply Company Ltd, Chamundeshwari Electricity Supply
Corporation Ltd, Hubli Electricity Supply Company Ltd, Gulbarga Electricity
Supply Company Ltd, Mangalore SEZ, AEQUS SEZ and the Hukeri Rural Electric
Co-operative Society. The Commission has disposed of 60 petitions during
the year. The details of the Commission’s activities are discussed in the
subsequent chapters.
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Karnataka Electricity Regulatory Commission Page 7
Functions of the Commission
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2016
Karnataka Electricity Regulatory Commission Page 8
3. THE COMMISSION & ITS FUNCTIONS:
3.1 THE COMMISSION
The Commission consists of the Chairman and two Members.
Sri M.K. Shankaralinge Gowda, IAS (Retd.) is the Chairman of the Commission.
Sri H.D Arun Kumar and Sri D.B Manival Raju are the Members of the
Commission.
3.2 FUNCTIONS OF THE COMMISSION
(1) As per Section 86 of the Electricity Act, 2003, the State Electricity
Regulatory Commissions are required to discharge the following
functions:
(a) Determine the tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be, within the State;
(b) Regulate electricity purchase and procurement process of distribution
licensees including the price at which electricity shall be procured from
the generating companies or licensees or from other sources through
agreements for purchase of power for distribution and supply within the
State;
(c) Facilitate intra-state transmission and wheeling of electricity;
(d) Issue licences to persons seeking to act as transmission licensees,
distribution licensees and electricity traders with respect to their
operations within the State;
(e) Promote cogeneration and generation of electricity from renewable
sources of energy by providing suitable measures for connectivity with
the grid and sale of electricity to any person, and also specify, for
purchase of electricity from such sources, a percentage of the total
consumption of electricity in the area of a distribution licensee;
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Karnataka Electricity Regulatory Commission Page 9
(f) Adjudicate upon the disputes between the licensees, and generating
companies and to refer any dispute for arbitration;
(g) Levy fee for the purposes of the Electricity Act;
(h) Specify State Grid Code consistent with the Grid Code specified under
clause (h) of sub-section (1) of section 79;
(i) Specify or enforce standards with respect to quality, continuity and
reliability of service by licensees;
(j) Fix the trading margin in the intra-State trading of electricity, if
considered necessary; and
(k) Discharge such other functions as may be assigned to it under this Act.
(2) The State Commission is also required to advise the State Government
on all or any of the following matters, namely: -
(i) promotion of competition, efficiency and economy in activities of the
electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the State;
(iv) matters concerning generation, transmission, distribution and trading of
electricity or any other matter referred to the State Commission by the
State Government.
The State Commission is required to ensure transparency while exercising its
powers and discharging its functions.
In discharge of its functions, the State Commission is being guided by the
National Electricity Policy, National Electricity Plan and Tariff Policy
published under Section 3 of the Electricity Act, 2003.
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2016
Karnataka Electricity Regulatory Commission Page 10
Functions of Secretary
&
Activities of the Office of the Commission
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Karnataka Electricity Regulatory Commission Page 11
4. THE COMMISSION’s OFFICE & FUNCTIONS OF THE SECRETARY:
4.1 THE COMMISSION’s OFFICE
The Chairman of the Commission is its Chief Executive as per Section 84 of the
Electricity Act, 2003. The Commission is supported by the Secretariat,
headed by the Secretary Capt. Dr. K. Rajendra, KAS.
Besides the Secretary, the Commission’s Office has senior level officers on
contract serving as Director (Tariff), Consultant (Tech) and Consultant (Legal).
The Office also has Deputy Directors and other supporting staff. The details of
the Officers and Staff working in the Commission are mentioned later in this
report. The Organization chart of the Commission is enclosed at Annex – 1.
4.2 FUNCTIONS OF THE SECRETARY:
The major functions of the Secretary are as follows:
(a) To supervise and guide the functioning of all the Officers and Staff of the
Commission;
(b) To prepare or cause to be prepared briefs and summaries of all pleadings
presented by various parties in each case before the Commission in
discharge of its functions;
(c) To assist the Commission in the proceedings relating to the powers
exercisable by the Commission;
(d) To ensure execution of the orders passed by the Commission;
(e) To collect from the State Government or other offices, companies or firms
or any other party as may be directed by the Commission, such
information as may be considered useful for the purpose of efficient
discharge of the functions of the Commission under the Act and place the
said information before the Commission; and
(f) To keep in his custody the seal and records of the Commission.
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Karnataka Electricity Regulatory Commission Page 12
5. ADMINISTRATION:
The office of the Commission consists of permanent employees and
officers/officials on deputation and on contract basis. The total working
strength of the staff of the Commission at the end of the Financial Year 2015-
16 is 41. The break-up of 41 Nos. is as follows:
a) Permanent Employees 4
b) Officers/Staff on deputation 12
c) Employees on Contract 21
d) Consultants on Contract 04
TOTAL 41
6. BUDGET & ACTUAL EXPENDITURE OF THE COMMISSION
The following table shows the details of budget estimates and actual
expenses for the FY2015-16:
In Rs. Lakhs
Major Expenditure
Head
Budget
Estimate
Expenditure
for 2015-16
Variation in
Budget
Estimates
Establishment expenses 514.00 479.00 (+)35.00
Office Expenses 362.60 276.98 (+)85.62
Total 876.60 755.98 (+)120.62
The State Government provided a total grant of Rs.312.00 lakhs to the
Commission during the financial year 2015-16. The same has been drawn
from the Government. The expenditure in excess of grant received was met
out of the annual Licence/ Tariff Application fee and other fee collected by
the Commission during the financial year.
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Karnataka Electricity Regulatory Commission Page 13
7. IMPLEMENTATION OF THE RTI ACT:
Status of applications / appeals received and disposed of during 2015-16
under the Right to Information Act, 2005:
The following is the status of applications/appeals received and disposed of
during 2015-16 under the Right to Information Act, 2005:
No. of
applications
received
No. of
applications
disposed of
Fee
collected
No. of
appeals
received
No. of appeals
disposed of
during the year
54 54 Rs. 2066 4 4
The Appellate Authority under the RIGHT TO INFORMATION ACT, 2005 is:
Secretary,
Karnataka Electricity Regulatory Commission,
9/2, Mahalakshmi Chambers, 7th floor,
M G Road,
Bengaluru - 560 001
Phone No. 25320213
Fax No. 25320338
The PUBLIC INFORMATION OFFICER under the RTI ACT is:
Assistant Secretary,
Karnataka Electricity Regulatory Commission,
9/2, Mahalakshmi Chambers, 6th floor,
M G Road,
Bengaluru - 560 001
Phone No. 25320213
Fax No. 25320338
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2016
Karnataka Electricity Regulatory Commission Page 14
8. USE OF KANNADA IN THE COMMISSION’s
ADMINISTRATION:
Kannada is used as a medium of communication in the office of the
Commission. The Annual Report is also published by the Commission both in
Kannada and English languages.
All Regulations and Notices of public interest are being issued in Kannada
language. The Commission is making a continuous and sustained efforts for
implementation of Kannada as the official language.
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Karnataka Electricity Regulatory Commission Page 15
Overview of Generation, Transmission
&
Distribution for FY16
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2016
Karnataka Electricity Regulatory Commission Page 16
9. Power Sector – An Overview
9.1 Status of Power Generation in the State:
View of Supa Hydro Power Generating Station (Source: KPCL Website)
The installed capacity of power generation in Karnataka as on 31.03.2016
including the share of the State in the central projects is as indicated below:-
(Figures in MW)
Source Hydro Thermal Others Total
KPCL & VVNL 3787 2720 6507
Private Generating Companies -
UPCL
1200 1200
Cogeneration & Renewables 5553 5553
State Total 3787 3920 - 13260
Central Projects (State’s Share) 2477 2477
Total 3787 6397 5553 15737 Source: KPTCL daily generation sheet.
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Karnataka Electricity Regulatory Commission Page 17
9.2 Green Power in Karnataka:
The following is the potential, commissioned and envisaged further
capacity addition of green power upto 2016 in the State:
Figures in MW
SL
No
Renewable
Energy
Sources
Potential
Capacity
Capacity
Allotted
Capacity
Commissioned
Cancelled
Capacity in
MW
Balance
Allotted
capacity to be
Commissioned
1 Wind 13983 13929 2916 3427 7585
2 Mini Hydel 3000 3015 836 730 1450
3 Solar 10000 1994 134 70 1790
4 Co-
generation 1500 1847 1252
11 584
5 Biomass 1000 370 134 0 236
6 Municipal
Solid Waste 135 25 0
0 25
Total 29618 21180 5272 4238 11670
Source: KREDL Website as on 31.03.2016
Hydro, 3787, 24%
Thermal, 6397, 41%
Wind, 2916, 18%
Solar, 134, 1%
Co-gen, 1252, 8%
Mini hydel, 835, 5%
Captive gen, 416, 3%
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2016
Karnataka Electricity Regulatory Commission Page 18
9.3 Status of Transmission in the State:
An overview of the State Transmission system as on 31.03.2016 is shown
below:
(Source: KPTCL Website)
During the FY16, the KPTCL has handled peak load of 9508 MW on 29th
March, 2016.
9.4 Status of Distribution System in the State:
The Distribution System in the State is vested with five Distribution companies
(ESCOMs), one Rural Electricity Co-operative Society and two SEZ viz;
1. Bangalore Electricity Supply Company Ltd., (BESCOM)
2. Mangalore Electricity Supply Company Ltd., (MESCOM)
3. Chamundeswari Electricity Supply Corporation Ltd., (CESC)
4. Hubli Electricity Supply Company Ltd., (HESCOM)
5. Gulbarga Electricity Supply Company Ltd., (GESCOM)
6. Hukeri Rural Electricity Co-Operative Society (Hukeri RECS)
7. Mangalore Special Economic Zone (MSEZ)
8. AEQUS Special Economic Zone (ASEZ)
Voltage Level in
KV No.of Stations
Transmission Line in
Ckt. Kms
400 4 2683.324
220 97 10948.849
110 385 10193.612
66 602 10425.502
33 345 8770.540
TOTAL 1433 43021.827
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Karnataka Electricity Regulatory Commission Page 19
Important statistics relating to the distribution system in the State are given
below:
9.4.1 Source wise Generation:
The source wise generation to meet the demand of the ESCOMs in the State
during the FY16, is indicated in the following table:
SOURCE Energy*
in
MU
KPCL Hydel 7240.91
KPCL Thermal 16171.68
Central Generating
Stations 15688.52
Major IPPs 7634.39
N C Es (Minor IPPs) 4995.29
Medium term 3389.10
Short-term 4824.02
Others 1696.09
Total 61640.00
* Provisional data as furnished by SLDC
Sl.
No. Particulars (As on 31.03.2016) BESCOM MESCOM CESC HESCOM GESCOM
Hukeri
RECS
1. Area Sq. km. 41092 26222 27773 54513 43861 991.49
2. Districts Nos. 8 4 5 7 6 -
3. Taluks Nos. 46 22 29 49 31 1
4. Population lakhs 207 61.55 81.55 166 112 3.571
5. Consumers lakhs 101.47 21.53 28.50 42.46 27.54 1.17
6. Energy
Consumption
MU 24538.18 4869.14 6256.07 10072.25 6476.64
264.36
7. Zone Nos. 3 1 1 2 2 -
8. DTCs Nos. 236672 54056 94258 146138 76884 2038
9. Assets Rs. in Crores 17191.53 1003.44 2606.38 7387.60 50.00
10. HT lines Ckt. kms 89297.69 31639.94 46981.34 66080.93 52486.78 1291
11. LT lines Ckt. kms 163045.47 76808.49 79377.80 115152.92 83058.63 3970
12.
Total
employees
strength:
A Sanctioned Nos. 21819 8786 10411 15802 10330 226
B Working Nos. 13539 5551 5548 8870 6031 140
13. Demand Rs. in Crores 14182.81 2353.04 2919.56 5419.17 3451.50 131.10
14. Collection Rs. in Crores 14037.95 2398.17 2963.05 5442.73 3388.37 133.03
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2016
Karnataka Electricity Regulatory Commission Page 20
The shortage of 4824 MU was met through short-term power purchase and
other sources, consequent to severe drought during the year. Contribution
from the KPCL Hydel and mini Hydel was drastically reduced by about 6000
MU, during the Financial Year 2016.
9.4.2 Energy Consumption for FY12 to FY16:
The category wise sales made by the ESCOMs and the Hukeri RECS in the
State are as follows:
ESCOMs and Hukeri RECS No. of Installations and Sales Details for FY12 to FY16
Category
Consumer
Category
FY12 FY13 FY14 FY15 FY16*
No.of
Installations
Energy
Sold in
MU
No.of
Installations
Energy
Sold in
MU
No.of
Installations
Energy
Sold in
MU
No.of
Installations
Energy
Sold in
MU
No.of
Installations
Energy
Sold in
MU
LT-1
Bhagya
Jyothi 2776839 506.91 2720200 515.01 2753905 551.16 2809060 492.61 2834626 574.80
LT-2
Domestic
AEH & Pvt.
Educational
Institutions 11594059 8693.00 11899754 8708.26 12510022 9189.11 13082516 10048.10 13809568 10605.93
LT-3 Commercial 1537019 2506.87 1587215 2512.79 1680917 2614.95 1766970 2839.28 1903128 3031.77
KPCL Hydel, 7240.91, 12%
KPCL Thermal, 16171.68, 26%
Central Generating
Stations, 15688.52, 25%
Major IPPs , 7634.39, 12%
N C Es (Minor IPPs) , 4995.29,
8%
Medium term, 3389.1, 6%
Short-term , 4824.02, 8%
Others , 1696.09, 3%
Energy in MU
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Karnataka Electricity Regulatory Commission Page 21
LT-4a
Irrigation
Pumpsets-
upto 10 HP 1924885 14295.60 2008432 16967.9 2110075 16810.87 2260411 17732.15 2400076 18924.92
LT-4(b) &
(c)
Irrigation
Pumpsets-
More than
10 HP &
Horticulture 9405 42.79 11400 62.19 11962 49.85 13206 55.47 13377 44.34
LT-5 LT Industries 328348 1864.25 347408 1848.53 370168 1839.34 387471 1889.12 414198 1904.81
LT-6
Water
Supply 107136 980.79 115411 960.41 127131 1054.96 138769 1037.19 146294 1068.17
LT-6 Street Lights 122443 804.73 114399 851.78 118847 814.52 125217 876.33 130372 882.56
LT-7
Temporary
Power &
Adversiting
Hoardings 206757 215.23 252800 210.64 350997 209.32 449127 263.05 593780 241.74
LT- Total 18606891 29910.17 19057019 32637.5 20034024 33134.08 21032747 35233.32 22245419 37279.04
HT-1
HT- Water
Supply 493 1189.21 541 1178.07 629 1338.12 714 1439.67 770 1476.66
HT-2a
HT-
Industries 7827 8045.55 8037 8156.68 8647 8484.53 9261 8196.85 10453 7901.75
HT-2b
HT
Commercial 5910 3490.8 6264 3403.05 6384 3288.01 6679 3235.59 7765 3089.21
HT-2c
HT-
Educational
Institutions /
Hospitals 0.00 0.00 0 0 735 252.94 1070 431.17 1351 502.97
HT-3(a) &
(b)
HT Irrigation
& LI
Schemes 367 192.26 410 268.70 488 321.25 558 333.18 623 391.33
HT-4
Residential
Apartments 375 181.63 417 181.36 336 175.17 342 175.85 395 145.61
HT-5
Temporary
Power 0 0 113 48.79 237 90.88 399 322.84 593 107.80
HT- Total 14972 13099.45 15782 13236.7 17456 13950.90 19023 14135.14 21950 13615.34
Total 18621863 43009.62 19072801 45874.1 20051480 47084.98 21051770 49368.43 22267369 50894.38
Transmission and Distribution losses:
The Karnataka Power Transmission Corporation Ltd., is the State Transmission
utility vested with the function of transmitting power from the generating
stations to the interface points with the ESCOMs. In the process, the loss of
energy due to technical reasons is incurred in the transmission system. This
transmission loss is accounted by the KPTCL. The KPTCL has initiated various
measures like, augmentation of stations / lines introduction of new stations /
lines to bring down the transmission losses in the system. The KPTCL had
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2016
Karnataka Electricity Regulatory Commission Page 22
reported transmission loss of 3.67% for the FY15, as against the approved
transmission loss of 3.92%. For the year FY16, the KPTCL had reported
transmission losses of 3.535%, a reduction of 0.135% from the previous year.
The approved loss level for the FY16 was 3.90%.
Transmission loss of 3.535%, exclusive of southern region losses, is reported by
the KPTCL for the financial year 2015-16.
Transmission losses of the KPTCL in the past five years are as follows:
Figures in percentage Particulars FY11 FY12 FY13 FY14 FY15 FY16
As approved by KERC 4.00 3.98 3.96 3.94 3.92 3.90
As reported by KPTCL 4.39 4.54 3.81* 3.80* 3.67* 3.535*
* Transmission losses excluding southern region losses. All other figures are inclusive of southern region
losses.
The ESCOMs enter into power purchase agreements with generators and the
same is accounted for, at generation bus of the generating stations. This
energy is transmitted through transmission system of the KPTCL to the
interface points with ESCOMs, which in turn distribute the energy through their
distribution network to cater to their consumers. Further, in the distribution
system, in addition to technical losses, commercial losses viz. errors in
metering, billing and collection, theft / pilferage of electricity etc. are also
incurred.
The approved distribution losses for the ESCOMs for the year FY16 are as
follows:
Figures in percentage
Name of the ESCOM Approved distribution
losses for FY16
BESCOM 13.40
MESCOM 11.25
CESC 14.50
HESCOM 17.50
GESCOM 16.50
Hukeri RECS 14.50
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2016
Karnataka Electricity Regulatory Commission Page 23
Trajectory of distribution losses of the ESCOMs in the past five years are as
follows:
Figures in percentage
Name of the ESCOM FY11 FY12 FY13 FY14 FY15 FY16*
BESCOM 14.48 14.46 13.82 13.89 13.53 12.01
MESCOM 13.07 12.09 11.88 11.93 11.57 11.50
CESC 15.48 16.20 15.07 14.73 13.89 13.60
HESCOM 19.85 19.99 19.96 18.05 16.74 16.86
GESCOM 22.06 21.71 19.09 17.77 18.93 18.98
Hukeri RECS 15.15 15.30 14.91 15.25 15.04 15.23 * As provisional data furnished by ESCOMs.
The overall transmission and distribution losses for the State in the past six
years are as follows:
Figures in percentage
FY11 FY12 FY13 FY14 FY15 FY16*
21.26 19.96 19.61 18.92 18.63 17.36 * Based on provisional data
9.4.3 The RPO Compliance of the ESCOMs and the Open Access [OA]
Consumers in the FY16:
I. Renewable Energy Purchase Obligation (RPO)
The Commission exercising its power under Section 86(1)(e) of the Electricity
Act, 2003 has specified, the percentage of energy to be sourced from
renewable sources by the obligated entities through Regulations. The Status
of compliance of the RPO by the ESCOMs and the OA Consumers for the
FY16 is indicated below:
(a) Status of the RPO Compliance by the ESCOMs:
The Status of the RPO Compliance for the FY16 by ESCOMs is indicated
below:
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2016
Karnataka Electricity Regulatory Commission Page 24
ESCOM
Energy
Purchased-
MU
Non-Solar RPO Solar RPO
%RPO
Target
Non-solar
RPO Target
MU
RE
purchased-
MU- i.e.
RPO met
%Non-
solar
RPO
met
%RPO
Target
RPO
Target
MU
Solar Energy
purchased-
MU
% Solar RPO
met
BESCOM 29143.62 10 2914.36 4975.61 17.07% 0.25 72.86 131.85 0.45
MESCOM 5027.72 10 502.77 708.78 14.10% 0.25 12.57 42.15 0.84
CESC 6444.82 10 644.48 721.96 11.20% 0.25 16.11 25.22 0.39
HESCOM (including HRECS)
12780.05 7 894.60 1143.41 8.95% 0.25 31.95 53.31 0.42
GESCOM 8244.39 5 412.22 560.95 6.80% 0.25 20.61 45.28 0.55
Total 61640.60 8.71 5368.43 7388.75 11.99% 0.25 150.10 297.81 0.48
Note: Compliance is based on provisional data
The Commission would validate the data furnished by the SLDC while passing
the tariff order for the 2017-18 and would pass appropriate orders in the
matter if required.
(b) Status of RPO Compliance by Consumers availing Open Access:
The Status of compliance by Consumers availing Open Access as per the
information furnished by the SLDC indicates that fourteen out of thirty-four
consumers had complied with the RPO for the FY-16. The Commission is in the
process of validating the data furnished by the SLDC and would take
appropriate action in the matter.
Tariff for Renewable Sources of Energy:
The Commission had revised the tariff for Wind Power Projects vide order
dated 24th February, 2015. The approved tariff and abstract of the
parameters considered for determination of tariff are as follows:
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2016
Karnataka Electricity Regulatory Commission Page 25
Parameter As per Order dated 24.02.2015
Debt: Equity 70:30
Return on Equity 16%
Income Tax on RoE Pass through
Interest on term loan 12.5%
Depreciation 5.83% -First 12 years
1.20% for remaining period
Interest on WC 13.00%
WC 2-months receivables
Capital Cost[CC] - Rs. Crs/MW 6.00
O& M for base year Rs. 9.51 L/MW
O & M annual escalation 5.72%
Plant Load Factor/Capacity Utilisation
Factor
26%
Auxiliary Consumption 0.5%
Tariff Rs/Unit
4.50 for the term of PPA
[Levelised for the plant life
period]
The Commission had revised the tariff for Mini-Hydel, Bagasse based
co-generation, Biomass plants (Water cooled condenser), Biomass (Air
cooled condenser). The approved tariff and abstract of the parameters
considered for determination of tariff are as follows:
i. Mini-Hydel:
Parameter 2015 Order
Debt: Equity 70:30
RoE 16%
Income Tax on RoE Pass through
Interest on term loan 12.50%
Depreciation 5.83% -First 12 years
And balance spread over life
of the project
Interest on WC 13.25%
WC 2-months receivables
Capital Cost[CC] -RsCrs/MW 6.20
O& M as percentage of CC for base
year
2.0% of CC
O & M annual escalation 5.72%
PLF/CUF 30.0%
Auxiliary 1.0%
Tariff
Rs/Unit
4.16 for the term of PPA
[Levelised for the plant life
period]
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 26
ii. Bagasse based co-generation
Parameter 2015 Order
Debt: Equity 70:30
Return on Equity 16%
Income Tax on RoE Pass through
Interest on term loan 12.5%
Depreciation 5.83% -First 12 years
and balance spread over life
of the project
Interest on Working Capital 13.25%
Working Capital 2-months receivables
Capital Cost - RsCrs/MW 4.75
O& M as percentage of CC for base
year
3% of CC
O & M annual escalation 5.72%
PLF/CUF 60%
Auxiliary consumption 9.0%
Fuel Price Rs/MT 1600 in base year
with 5.72% annual escalation
Sp. Fuel Consumption Kg/unit 1.60
Tariff in Rs/Unit
Fixed cost Levelized for life of
the Projects:
Rs.2.02/unit
Variable cost [Rs/Unit]
applicable to the relevant
year:
FY-15 : Rs.2.81 (Base year)
FY-16 : Rs.2.97
FY-17 : Rs.3.14
FY-18 : Rs.3.32
iii. Biomass –Water cooled condenser based plant:
Parameter 2015 Order
Debt: Equity 70:30
RoE 16%
Income Tax on RoE Pass through
Interest on term loan 12.5%
Depreciation 5.83% -First 12 years
And balance spread over life
of the project
Interest on WC 13.25%
WC 2-months receivables
Capital Cost[CC] -RsCrs/MW 5.70
O& M for base year Rs.30L/MW
O & M annual escalation 5.72%
PLF/CUF 75%
Auxiliary 10%
Fuel Price
Rs/MT
2100 in base year
with 5.72% annual escalation
Sp. Fuel Consp.
Kg/unit
1.21
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 27
Tariff
Rs/Unit
Fixed cost Levelized for life of
the Projects:
Rs.2.37/unit
Variable cost [Rs/Unit]
applicable to the relevant
year:
FY-15 : Rs.2.82 (Base year)
FY-16 : Rs.2.98
FY-17 : Rs.3.16
FY-18 : Rs.3.34
iv. Biomass air cooled condenser based plant:
Parameter 2014 Order
Debt: Equity 70:30
RoE 16%
Income Tax on RoE Pass through
Interest on term loan 12.50%
Depreciation 7% SLM
Interest on WC 13.25%
WC 2-months receivables
Capital Cost[CC] - Rs.Crs/MW 5.80
O& M for base year Rs. 23.20 L/MW
O & M annual escalation 5%
PLF/CUF 75%
Auxiliary 10.0%
Fuel Price
Rs/MT
2000 in base year
with 5% annual escalation
Sp. Fuel Consp.
Kg/unit
1.18
Tariff
Rs/Unit
5.15 in first year going upto
6.04 in 10th year
[Year wise tariff determined
for 10 years]
1. Solar tariff:
The Commission had revised the tariff for Grid Interactive Megawatt scale
Solar Power Plants vide order dated 30.07.2015. The abstract of the
parameters considered for determination of tariff:
Parameters Solar PV Solar Thermal
Debt: Equity 70:30 70:30
Interest on Term loan 12.50% 12.50%
RoE 16% 16%
Depreciation 5.83% for first 12
years and 1.54%
for next 13 years
5.83% for first 12
years and 1.54%
for next 13 years
Capital Cost [CC] - lakhs 600 1200
CUF 19% 23%
O & M 13 L/MW 17.72 L/MW
O & M escalation P.A. 5.72% 5.72%
IWC 13.25% 13.25%
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 28
Auxiliary 0.25% 8%
Discount factor 13.55% 13.55%
Degradation Factor 0.5% of net
generation after
4th year
NA
Tariff Rs/unit 6.51 10.85
The Commission had revised the tariff for Grid Interactive Solar Rooftop
Photovoltaic Power Plants vide order dated 2nd May, 2016. The abstract of
the parameters considered for determination of tariff:
Particulars
Capacity of Solar Rooftop and Small PV Plants in kW
1- 10 Above 10
and upto
50
Above 50
and upto
100
Above 100
and upto
500
Above 500
and upto
1000
Capital Cost/kW- Rs. 75000 70000 65000 60000 55000
Debt: Equity Ratio 70:30
Debt-Rs. /kW 52500 49000 45500 42000 38500
Equity- Rs. /kW 22500 21000 19500 18000 16500
Debt Repayment
Tenure in Yrs.
12
Interest charges on
Debt-%
12.00%
Capacity Utilisation
Factor (CUF)
19%
ROE-% 16%
Discount Factor -% 13.20%
O & M expenses 1% of the capital cost with annual escalation of 5.72%
Working Capital Receivables equivalent to one month’s revenue
Interest on Working
Capital
12.50%
Depreciation for first
12 yrs
5.83%
Depreciation for next
13 yrs
1.54%
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 29
The approved tariff for the control period ending 31st March, 2018 is as
follows:
Capacity of Solar Rooftop
and small PV power plants
Approved Tariff in
Rs/Unit
(Without Capital
Subsidy)
Approved Tariff in
Rs/Unit
(With Capital
Subsidy of 15%)
1 to 10kW 7.08 6.03
Above 10kW and upto 50kW 6.61 5.63
Above 50kW and upto 100kW. 6.14 5.23
Above 100kW and upto 500kW. 5.67 4.83
Above 500kW and upto 1MW. 5.20 4.43
Wheeling & banking Charges:
To encourage sale of Renewable Energy sources to utilise within the State for
captive as well as third party sale, the Commission had determined wheeling
charges at 5% and banking charges of 2% of the energy injected. The
Banking charges are applicable only to wind and Mini Hydel. For Solar,
wheeling & banking charges and cross subsidy charges are not charged for
the transaction within the State, as a promotion measure.
In case of Non-REC route, the banked energy remaining unutilized at the end
of the year is paid at 85% of latest generic tariff determined by the
Commission as applicable to the relevant category of RE power to the
Generating Company. In case of REC route projects, the banked energy
remaining unutilized at the end of the month is paid at Average Pooled
Power Purchase Cost (APPPC).
Cross Subsidy Surcharge:
As per Tariff Order 2016, the cross subsidy for industrial consumers at 66 kV it is
118 paise/unit and at HT level it is 86 paise/unit. For commercial consumers at
66 kV it is 253 paise/unit and at HT level it is 222 paise/unit.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 30
Transmission Tariff for FY17:
The approved transmission tariff for FY17 as per the Commission’s Tariff Order
dated 30th March, 2016 is as follows:
Transmission Charges payable by ESCOMs for FY17
Particulars Transmission
Capacity
Allocation in
MW
Transmission
charges Rs.
Crores per
annum
Transmission
charges Rs.
Crores per Month
BESCOM 9728 1487.22 123.94
MESCOM 1615 246.90 20.58
CESC 2253 344.44 28.70
HESCOM 3999 611.37 50.95
GESCOM 2635 402.84 33.57
TOTAL (MW) 20230 3092.77
257.73
Transmission
Tariff
(Rs./MW/Month) 127400
Transmission Charges (Rs/MW) for Short-term Users
Transmission
Charges
(Rs/MW)
Amount in Rs/MW
More than 12
hrs & upto 24 hrs
in a day in one
block 1047.13
More than 6 hrs
& upto 12 hrs in
a day in one
block
523.56
Upto 6 hrs in a
day in one
block
261.78
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 31
Retail Supply Tariff for FY17:
The approved Retail Supply Tariff for Consumers in Karnataka as per
Commission’s Orders dated 30th March 2016 is as follows:
Tariff
Category Category Description
Particulars/Slab of
consumption (Units or
KWH)
Type of
charges BESCOM
Other
ESCOMs
and Hukeri
RECS
LT-1 BJ/KJ FC 30.00 30.00
EC ACS* ACS*
LT-2(a)(i)
Domestic AEH coming
under BBMP, Municipal
Corpn and all Urban Local
Bodies
For First KW FC 30.00 30.00
For every additional KW FC 40.00 40.00
0-30 EC 3.00 3.00
31-100 EC 4.40 4.40
101-200 EC 5.90 5.90
Above 200 EC 6.90 6.90
LT-2(a)(ii) Domestic AEH coming
under Village Panchayats
For First KW FC 20.00 20.00
For every additional KW FC 30.00 30.00
0-30 EC 2.90 2.90
31-100 EC 4.10 4.10
101-200 EC 5.60 5.60
Above 200 EC 6.40 6.40
LT-2(b)(i)
Pvt Educational Institutions
and Nursing Homes &
Private Hospitals coming
under BBMP, Municipal
Corpn and all Urban Local
Bodies
For each KW FC 45.00 45.00
Subject to minimum of FC 75.00 75.00
0-200 EC 6.25 6.25
Above 200 EC 7.45 7.45
LT-2(b)(ii)
Pvt Educational Institutions
and Nursing Homes &
Private Hospitals coming
under Village Panchayats
For each KW FC 35.00 35.00
Subject to minimum of FC 60.00 60.00
0-200 EC 5.70 5.70
Above 200 EC 6.90 6.90
LT-3 (i)
Commercial Lighting and
heating coming under
BBMP, Municipal Corpn
and all Urban Local Bodies
For each KW FC 50.00 50.00
0-50 EC 7.15 7.15
Above 50 EC 8.15 8.15
LT-3 (ii)
Commercial Lighting and
heating coming under
Village Panchayats
For each KW FC 40.00 40.00
0-50 EC 6.65 6.65
Above 50 EC 7.65 7.65
LT-4 (a) IP Sets less than 10HP CDT* CDT*
LT-4 (b) IP Sets more than 10HP For each HP FC 40.00 40.00
EC 2.80 2.80
LT-4 (c) (i) Pvt Horticulture, Nurseries For each HP FC 30.00 30.00
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 32
&Coffee & Tea plantations
below 10HP EC 2.80 2.80
LT-4 (c) (ii)
Pvt Horticulture, Nurseries &
Coffee & Tea plantations
above 10HP
For each HP FC 40.00 40.00
EC 2.80 2.80
LT-5 (a)
Industrial heating and
Motive power coming
under BBMP and
Municipal Corporation
Per HP for 5HP and below FC 35.00 30.00
Per HP for 5HP to less than
40HP FC 35.00 35.00
Per HP for above 40HP to
less than 67HP FC 45.00 40.00
Per HP Above 67HP FC 110.00 100.00
0-500 EC 5.10 4.95
501-1000 EC 6.30 5.85
Above 1000 EC 6.30 6.15
LT-5 (b)
Industrial heating and
Motive power coming
under all areas other than
those covered under LT-
5(a)
Per HP for 5HP and below FC 30.00 30.00
Per HP for 5HP to less than
40HP FC 35.00 35.00
Per HP for above 40HP to
less than 67HP FC 40.00 40.00
Per HP Above 67HP FC 100.00 100.00
0-500 EC 4.85 4.85
501-1000 EC 5.70 5.70
Above 1000 EC 6.00 6.00
LT-6(a) Water Supply Per HP FC 45.00 45.00
Per Unit EC 3.90 3.90
LT-6 (b)
Street Lights Per HP FC 60.00 60.00
LED Lighting Per Unit EC 5.50 5.50
Per Unit EC 4.50 4.50
LT-7( a) Temporary/ Hoarding &
Advertising Boards
Less than 67 HP(EC subject
to weekly minimum of
Rs.170 per KW of the
sanctioned load)
EC 9.50 9.50
LT-7 (b)
Permanent supply to
Hoarding & Advertising
Boards
For each KW
FC 50.00 50.00
Per Unit EC 9.50 9.50
HT-1 HT Water supply Per KVA FC 190.00 190.00
Per Unit EC 4.50 4.50
HT-2(a)(i)
HT Industries coming under
BBMP and Municipal
Corporation
Per KVA FC 190.00 180.00
For first one lakh units EC 6.25 6.20
For balance units EC 6.75 6.60
BMRCL
Per KVA FC 190.00 -
Per Unit EC 5.70 -
Railway Traction & Effluent
Treatment Plants
Per KVA FC 190.00 190.00
Per Unit EC 5.90 5.90
HT-2(a)(ii) HT Industries other than
those covered under HT-
Per KVA FC 180.00 180.00
For first one lakh units EC 6.20 6.20
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2016
Karnataka Electricity Regulatory Commission Page 33
2(a) ( i ) For balance units EC 6.60
6.60
Railway Traction & Effluent
Treatment Plants
Per KVA FC 190.00 190.00
Per Unit EC 5.90 5.90
HT-2(b)( i )
HT commercial coming
under BBMP and Municipal
Corporation
Per KVA FC 210.00 200.00
For first two lakh units EC 8.05 7.85
For balance units EC 8.35 8.15
HT-2(b)(ii)
HT Commercial other than
those covered under HT-
2(b)(i)
Per KVA FC 200.00 200.00
For first two lakh units EC 7.85 7.85
For balance units EC 8.15 8.15
HT-2 (c) (i)
HT- Govt. Hospitals &
Hospital run by Charitable
Institutions & ESI Hospitals
and Universities,
Educational Institutions
belonging to Govt., Local
bodies, Aided Institutions
and Hostels of all
Educational Institutions.
Per KVA FC 180 180
For first one lakh units EC 6.00 6.00
For the balance unit EC 6.50 6.50
HT-2 (c)(ii)
HT-Hospitals and
Educational Institutions
other than those covered
under HT-( c) (i)
Per KVA FC 180 180
For first one lakh units EC 7.00 7.00
For the balance unit EC 7.50 7.50
HT-3(a)(i) LI Schemes under Govt.
EC subject to Annual
minimum of Rs.1120 per
HP/Annum
EC 2.00 2.00
HT-3(a)(ii) LI Schemes on
Urban/Express feeders
Per HP FC 40.00 40.00
Per Unit EC 2.00 2.00
HT-3(a)(iii)
LI Schemes other than
those covered under HT-3
(a)(ii)
Per HP FC 20.00 20.00
Per Unit EC 2.00 2.00
HT-3(b) HT Agriculture/Horticulture
EC subject to Annual
minimum of Rs.1120 per HP
of sanctioned
load/Annum
EC 4.00 4.00
HT-4(a) HT Residential –Applicable
to all areas
Per KVA FC 110.00 110.00
Per Unit EC 5.85 5.85
HT-5
Temporary- applicable to
67 HP and above of all
categories including
Hoarding & Advertising
Boards
Per KVA FC 220.00 220.00
Per Unit (Weekly minimum
is not applicable) EC 9.50 9.50
HT-5(a)
Temporary- applicable to
Bangalore International
Exhibition Centre
Per Unit EC 10.50 -
ESCOM
*Average Cost of Supply
(ACS) Rs/Unit
*Commission Determined
Tariff (CDT) Rs/Unit
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 34
BESCOM 5.96 2.86
MESCOM 6.01 4.73 FC- Fixed Charges
CESC 5.67 4.88 EC-Energy Charges
HESCOM 5.98 5.56
GESCOM 5.77 5.03
Hukeri
RECS 4.82 4.63
Time of day (ToD) Tariff for HT-2(a) & HT-2(b) categories with a Contract demand of 500 KVA and above was
on optional basis upto 31.08.2012 and compulsory from 01.09.2012 .The ToD tariff on optional basis would
continue as existing earlier for HT-1 category and also for LT-5, , HT-2(a) & HT-2 (b) categories with CD of less
than 500 KVA at following ToD tariff
Time of Day
Increase(+)/reduction (-)
in energy charges over
the normal tariff
applicable
22.00Hrs to 06.00Hrs (-)125 paise per unit
06.00Hrs to 18.00Hrs 0
18.00Hrs to 22.00Hrs (+)100 paise per unit
Mangalore SEZ
HT Industrial / Common Facilities Per KVA FC 180.00
Per Unit EC 6.50
HT Construction Per KVA FC 200.00
Per Unit EC 9.00
AEQUS SEZ
HT Industrial / Common Facilities Per KVA FC 180.00
Per Unit EC 6.55
HT Construction Per KVA FC 200.00
Per Unit EC 9.00
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 35
6. IMPORTANT EVENTS DURING THE YEAR
Multi Year Tariff Orders in respect of KPTCL, ESCOMs, Mangalore SEZ,
AEQUS SEZ and Hukeri RECS for FY17-19 have been issued.
Three Advisory Committee meetings were held during the year.
Four ESCOMs review meetings were conducted. Various issues for
improving quality of power supply and compliance of directives issued
by the Commission were discussed.
38 internal meetings were held to discuss and decide on various issues
pertaining to the sector.
60 cases for adjudication of disputes were finally heard and disposed of
during the year.
19 PPAs and 26 supplemental PPAs were approved.
Revision of Generic Tariff for megawatt scale solar PV and solar thermal
power plants.
Truing up of APPC for 2015-16 and notifying provisional APPC for 2016-17
for the purpose of Renewable Energy Certificate (REC) was undertaken.
Orders on four quarterly claims of Fuel Cost Adjustment Charges for all
ESCOMs was issued.
Activities of the Commission
in
FY16
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 36
10. ACTIVITIES OF THE COMMISSION IN FY 2015-16
(1) Following are the activities of the Commission during the year, in
pursuance of the functions of the Commission specified, under Section 86
of the Electricity Act, 2003.
Section of EA 2003 Functions specified Activities during the
year
86(1)(a) Determine tariff for
generation, supply
transmission and
wheeling of
electricity……..
Tariff Orders in respect
of KPTCL for transmission
charges, Distribution
licensees for retail
supply and wheeling
charges have been
issued.
Generic Tariff Order in
respect of solar power
plants have been
issued.
86(1)(b) Regulate electricity
purchase and
procurement process of
distribution licensee ….
1107 PPAs (including
supplemental PPAs)
have been approved
by the Commission.
86(1)(c) Facilitate intra state
transmission and
wheeling of electricity
Transmission and
Wheeling charges
determined in
respective Tariff Orders.
86(1)(d) Issue of licence KPTCL, ESCOMs and
Hukeri RECS are existing
licensees. MSEZ and
AEQUS SEZ are deemed
licensees.
86(1)(e) Promotion of co-
generation and
renewable sources of
energy
Renewable Purchase
Obligation has been
specified for all the
ESCOMs / captive and
open access
generators.
Renewable Energy
Certificate already
introduced.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 37
Renewable Purchase
Obligation compliance
monitored.
86(1)(f) Adjudicate upon
disputes
The Commission has
disposed of 60 petitions
during the year.
86(1)(g) Levy of fee Fee levied as per the
provisions of the
Regulations made is
being collected.
86(1)(h) Specify State Grid Code The existing State Grid
Code is modified on the
lines of IEGC and the
new Grid Code have
been notified.
86(1)(i) Enforce standards The quality, continuity
and reliability of services
by the licensees are
being reviewed
regularly.
86(1)(j) Fixing trading margin No intra-state trader
exists in the State.
86(1)(k) Discharge such other
functions
Undertaken such
functions whenever,
required.
86(2) Advise the State
Government
Advisory on specific
issues have been
communicated to the
State Government
86(3) Ensure transparency Public hearings and
written comments /
suggestions invited from
stakeholders in all tariff
determination and
other proceedings.
86(4) Guided by National
Electricity Policy and
Plan and Tariff Policy.
The Commission has
taken note of the
provisions of NEP and
Tariff Policy in discharge
of its functions.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 38
(2) Tariff Order of the KPTCL:
The Commission had issued the Tariff Order dated 30th March, 2016 in respect
of the KPTCL. The Annual Revenue Requirement (ARR) sought by the KPTCL
and approved by the Commission for FY17-19 are as follows.
Figures in Rs. Crores
Particulars FY17 FY18 FY19
Annual Revenue
Requirement sought by
KPTCL
3134.02 3487.86 3841.07
Annual Revenue
Requirement approved by
the Commission.
3092.77 3171.28 3472.60
The approved ARR for the FY17 also includes an amount of Rs.202.52 Crores
of gap in revenue for the FY15 as per the Annual Performance Review for the
FY15.
(3) Tariff Orders of the ESCOMs:
The Commission had issued the Tariff Orders dated 30th March, 2016 in
respect of all the Electricity Supply Companies (ESCOMs), AEQUS SEZ
Mangalore SEZ and Hukeri RECS. The Annual Revenue Requirement (ARR)
sought by the ESCOMs and approved by the Commission are as follows:
Rs.in Crores
ESCOM
FY17 FY18 FY19
As filed As
approved As filed
As
approved
As
filed
As
approved
BESCOM 17556 15765 18617 15714 19995 16989
MESCOM 3091 2774 3580 2963 3833 3180
CESC 3778 3382 4220 3749 4638 4150
HESCOM 7112 6018 8298 6406 9635 7076
GESCOM 4379 3979 5182 4488 5724 4856
Hukeri RECS 152 118 177 137 206 149
Mangalore
SEZ
55 55 60 60 75 75
AEQUS SEZ 10 10 13 13 17 18
(Above figures are rounded of to the nearest integer)
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 39
(4) Regulations issued by the Commission:
During the year the following important Regulations/Orders were issued by
the Commission:
i. Karnataka Electricity Regulatory Commission (Demand Side
Management) Regulations, 2015;
ii. Karnataka Electricity Regulatory Commission (Terms and Conditions
for Open Access) (Third amendment) Regulations, 2015;
iii. Karnataka Electricity Regulatory Commission (Procurement of Energy
from Renewable sources) (Third Amendment), Regulations, 2015;
iv. KERC (Karnataka Electricity Grid Code) and KERC (Karnataka
Electricity Distribution Code) Regulations, 2015.
v. KERC (Smart Grid) Regulations, 2015.
vi. Fourth amendment to the various clauses of Conditions of Supply of
Electricity of Distribution Licensees in the State of Karnataka (COS)
2016.
vii. KERC (Terms and Conditions for determination of generation tariff)
Regulations, 2014 for the control period 2014-2019.
i) Karnataka Electricity Regulatory Commission (Demand Side
Management) Regulations, 2015:
The above Regulations has been issued vide notification Y/04/10
dated 28.07.2015 and published in the gazette of Karnataka on 31st
July, 2015. These Regulations lay down guidelines to the distribution
licensees in the State for designing, developing and implementing
Demand Side Management Programmes. The Regulations broadly
specify the following:
a. DSM objectives: It includes mitigation of peak and energy shortages,
reduction of greenhouse gas emissions and conservation of scarce
conventional energy resources.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 40
b. DSM targets: The targets would be specified by the Commission by issuing
separate order.
c. DSM cell, its roles and responsibilities: It includes creation of a DSM cell
to carryout functions such as load research and market research,
estimation of DSM potential, development of methodology for assessing
technical potential, development of base line data, capacity building for
employees, formulation of DSM plan and seeking approvals from the
commission for the same, implementation of DSM programmes and to
perform programme level evaluation measurement and verification, etc.
d. Mechanism for cost recovery of DSM expenses by distribution licensee: It
provides for cost recovery through annual revenue requirement
mechanism.
e. Monitoring and reporting of DSM programs: The distribution licensee has
to submit report on the progress of implementation of the DSM plan every
six months.
f. Evaluation, Measurement and verification of DSM programs: The
distribution licensee is made responsible for evaluation, measurement
and verification of the savings from the DSM programmes.
g. It includes provision for disallowance of expenditure for non-achievement
of DSM targets or for failure to implement DSM program according to
approved plan
ii) Karnataka Electricity Regulatory Commission (Terms and Conditions for
Open Access) (Third amendment) Regulations, 2015
The above Regulations has been issued vide notification Y/02/15/1143 dated
05.10.2015 and published in the gazette of Karnataka on 8th October, 2015.
The Regulations broadly specify the following:
a. Regulation 8 of the principal Regulations has been substituted, so as to
have a single nodal agency for both short term and long term open
access.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 41
b. Regulation 9 of the principal Regulations has been substituted, so as to
fix the time lines for grant of open access and also for signing of
wheeling and banking agreement. In case of non-adherence to the
time lines specified, deemed grant of open access is provided, to
prevent undue delay in the process of granting open access. Further,
the effective date for commencement of operation of wheeling of
electricity by the applicant is specified as the date of receipt of
agreement for wheeling by the licensee, to avoid any delay in
operationalization of wheeling.
c. Amended Regulation 9 also specify that, the licensees are not liable to
pay any charges for the energy injected before the grant of open
access and for any energy injected from the date of grant of open
access till the date of submission of agreement for wheeling, the
applicant is entitled for payment of energy charges at average pooled
power purchase cost (APPC).
d. Further, to bring transparency in the process of grant of open access,
provision has been made for display of the status of open access
application on the website of the nodal agency (SLDC).
e. New clause is introduced to specify procedure for day ahead open
access transaction.
f. Regulation 11(xiii) of the principal Regulations is modified, providing for
separate payment of transaction charges and meter reading charges
to the nodal agency and the distribution licensee respectively.
iii) Karnataka Electricity Regulatory Commission (Procurement of Energy from
Renewable sources) (Third Amendment), Regulations, 2015
The above Regulations has been issued vide notification Y/01/15/1368 dated
16.11.2015 and published in the gazette of Karnataka on 19th November,
2015, The Regulations broadly specify the following:
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2016
Karnataka Electricity Regulatory Commission Page 42
a. The definition of contract demand has been included for the purpose of
clarity.
b. Regulation 3(ii) of the principal Regulations is amended, to include
under RPO, consumers having captive co-generation plants.
c. Regulation 3(iii) of the principal Regulations is amended, to include
under RPO, power procured from co-generation plants and also from
power exchanges, irrespective of whether they are consumers of the
distribution licensees are not.
d. Regulation 4(i) is modified specifying the following year wise non-solar
and solar RPO for the ESCOMs:
Non-Solar RPO
Year wise
DISTRIBUTION
LICENSEE
2015-
16
2016-
17
2017-
18
2018-
19
2019-20
and
onwards
BESCOM 10% 11% 12% 13% 14%
MESCOM 10% 11% 12% 13% 14%
CESC 10% 11% 12% 13% 14%
HESCOM 7% 7.5% 8.5% 9.5% 10.50%
GESCOM 5.0% 5.50% 6.0% 7.0% 8%
HRECS 7% 7.5% 8.5% 9.5% 10.50%
DEEMED
LICENSEE(s)
RPO target shall be same as that of the
ESCOM where the SEZ is situated.
Solar RPO
Year wise
DISTRIBUTION
LICENSEE
2015-
16
2016-
17
2017-
18
2018-
19
2019-20
and
onwards
BESCOM 0.25% 0.75% 1.25% 1.75% 2.50%
MESCOM 0.25% 0.75% 1.25% 1.75% 2.50%
CESC 0.25% 0.75% 1.25% 1.75% 2.50%
HESCOM 0.25% 0.75% 1.25% 1.75% 2.50%
GESCOM 0.25% 0.75% 1.25% 1.75% 2.50%
HRECS 0.25% 0.75% 1.25% 1.75% 2.50%
DEEMED
LICENSEE(s) 0% 0.75% 1.25% 1.75% 2.50%
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2016
Karnataka Electricity Regulatory Commission Page 43
e. Regulation 4(ii) is modified specifying the following year wise non-solar
and solar RPO for the grid connected captive consumers:
Source
2015-16 2016-17 2017-18 2018-19
2019-20
and
onwards
NON-SOLAR 5.0% 5.5% 6% 7.0% 8%
SOLAR 0% 0.75% 1.25% 1.75% 2.50%
f. Regulation 4(iii) is modified specifying the following non-solar and solar
RPO for the open access consumers:
Source
2015-16 2016-17 2017-18 2018-19 2019-20
onwards
NON-SOLAR 5.0% 5.5% 6% 7.0% 8%
SOLAR 0% 0.75% 1.25% 1.75% 2.50%
g. Regulation 8(1) is modified to provide for imposition of penalty on the
obligated entities who do not comply with the RPO specified, by
requiring them to purchase REC to the extent of 10% of the unmet RPO.
iv) Karnataka Electricity Grid Code (KEGC) and Karnataka Electricity
Distribution Code (KEDC):
The Commission had issued a revised draft Karnataka Electricity Grid Code
(KEGC) and Karnataka Electricity Distribution Code (KEDC) which lay down
the rules, guidelines and standards to be followed by various persons and
participants in the Intra-State Transmission and Distribution system to plan,
develop, maintain and operate the power system, in the most secure,
reliable, economic and efficient manner, so as to meet the requirements of
Integrated Operation with the Inter-State Transmission system of the Southern
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2016
Karnataka Electricity Regulatory Commission Page 44
Regional Grid/ National Grid as per the provisions of the Indian Electricity Grid
Code while facilitating healthy competition in the generation.
Various stakeholders have furnished their comments/views/suggestions for
the draft KEGC and KEDC and a public hearing was conducted on
05-11-2015. The Commission after considering the comments / views /
suggestions made by the stakeholders on the draft KEGC and KEDC has
issued the final Karnataka Electricity Grid Code (KEGC) and Karnataka
Electricity Distribution Code (KEDC). The same had been published in the
official Gazette of Government of Karnataka on 3rd February, 2016.
The Transmission licensee and all Distribution licensees are informed to
comply with the provisions made in the KEGC and KEDC.
v) Karnataka Electricity Regulatory Commission (Smart Grid) Regulations,
2015:
The objective of these Regulations is to bring about economy, efficiency
improvement in generation and licensee operations, manage the
transmission and distribution networks effectively, enhance network security,
integrate renewable and clean energy into the grid at both large and
distributed generation levels, enhance network visibility, promote optimal
asset utilization, enhance access, improve customer service levels and allow
for participation of prosumers in operations of Licensees through greater
technology adoption across the value chain in the electricity sector and
particularly in the transmission and distribution segments.
Government of India has notified a Smart Grid Vision and Roadmap that
clearly articulates the goals and timelines for deployment with respect to the
above objectives. These Regulations take into consonance the
aforementioned roadmap(s), and aim to propagate the expansion of Smart
Grid and allied technologies in accordance with the roadmap(s).
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The Regulations take into account that Smart Grid is in early stages of
development and deployment in the Country and also across the World. It is
imperative that flexibility is available to experiment with new technologies
and applications consistent with the above purposes, while duly protecting
the legitimate interests of consumers and prosumers and addressing their
concerns. Accordingly, the Regulations lay out the principles that the
Commission will adopt for propagating Smart Grid.
The objectives also include enhancing network visibility and access,
promoting optimal asset utilization, improving consumer service levels
thereby allowing for participation in operations of transmission licensees,
distribution licensees through greater technology adoption across the value
chain in the electricity sector and particularly in the transmission and
distribution segments.
The Commission had issued a draft KERC (Smart Grid) Regulations, 2015
inviting comments from stakeholders. The Commission also held a Public
hearing in the matter on 21-01-2016. After considering the view/
comments/suggestions of the Stakeholders in the matter, the Commission, in
exercise of the powers conferred by the clause (zp) of sub-section (2) of
Section 181 of the Electricity Act, 2003 (Central Act 36 of 2003,) issued the
KERC (Smart Grid) Regulations, 2015 which has been published in the official
Gazette of Government of Karnataka, on 3rd February, 2016.
The Transmission licensee and all Distribution licensees have been informed to
comply with the provisions made in the Regulations.
vi) Fourth Amendment to the various Clauses of Conditions of Supply of
Electricity of Distribution Licensees in the State of Karnataka (CoS),
2006:
The Fourth amendment Conditions of Supply of Electricity of Distribution
Licensees in the State of Karnataka (CoS) were notified in the Karnataka
Gazette on 28th January, 2016.
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Karnataka Electricity Regulatory Commission Page 46
The BESCOM had filed a petition vide OP No. 30/2014 before the Commission
seeking amendments to relevant clauses of the CoS for inclusion of
electrostatic meters on par with the electronic tri-vector meters in the CoS.
Also, it had requested for further amendments in the CoS to provide for fixing
of LT sub-meters for domestic/ commercial use in the HT/EHT installations.
After eliciting the views/comments and suggestions from stakeholders, the
Commission had notified the fourth amendment.
(5) Draft Regulations issued during FY16:
The Commission has issued the following draft Regulations during FY16:
i) Draft KERC (Forecasting, Scheduling, Deviation settlement and related
matters for Wind and Solar Generation Sources) Regulations, 2015:
The percentage share of wind energy in Karnataka is about 15.94% of the
total installed capacity of 15052 MW including the State’s share from Central
Generating Stations, as on 31.03.2015. In addition to this, Solar power
generation in large capacities are also proposed to be added in the near
future. The Solar and Wind power being infirm sources of energy, there is a
need for the Grid operator to have sufficient information in advance on
quantum of energy expected to be injected into the grid. Hence, the
Commission has notified the draft of the KERC (Forecasting, Scheduling,
Deviation settlement and related matters for Wind and Solar Generation
Sources) Regulations, 2015 on 16th November, 2015.
ii) Draft KERC (Terms and Conditions for determination of Transmission tariff)
(Second Amendment) Regulations, 2015:
The Commission had notified the draft KERC (Terms and Conditions for
determination of Transmission tariff) (Second Amendment) Regulations, 2015
on 26th November, 2015. The amendments to capital investment, treatment
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2016
Karnataka Electricity Regulatory Commission Page 47
of losses, computation of interest on loan, depreciation, Return on Equity,
O&M expenses etc., were proposed. The Commission after seeking the
views/comments/suggestions of the stakeholders, proposes to hold a public
hearing in the matter before notifying the final Regulations.
iii) Draft KERC (Terms and Conditions for determination of tariff for distribution
and retail sale of electricity) (Second Amendment) Regulations, 2015:
The Commission had notified the draft KERC (Terms and Conditions for
determination of tariff for distribution and retail sale of electricity) (Second
Amendment) Regulations, 2015 on 26th November, 2015. The amendments to
capital investment, computation of interest on loan, depreciation, Return on
Equity, O&M expenses etc. were proposed. The Commission, after seeking
the views/comments/suggestions of the stakeholders, proposes to hold a
public hearing in the matter before notifying the final Regulations.
(6) Important Orders issued during the year FY16:
i) Order on ‘Determination of Tariff for Bagasse based Co-generation plants
during off season’ and ‘Draft guidelines for monitoring use of coal for
power generation in co-generation projects during off-season for the
purpose of determination of Tariff for Bagasse based Co-Generation
Plants during Off-season using Coal as fuel’.
The Commission, having considered all the aspects relating to the issue,
concluded that the adverse impact on the environment by operation of
bagasse based cogeneration plants using coal as fuel outweighs the benefit
from the power generation during off-season. The Commission, therefore,
decided not to make any change in the existing norms for the operation of
bagasse based cogeneration plants and issued the following order on 27th
November, 2015:
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2016
Karnataka Electricity Regulatory Commission Page 48
“The existing norms for Bagasse based Co-generation plants permitting
them to use 15% of coal and the tariff as determined by the Commission
from time to time such plants, treating them as renewable energy source
shall continue. Any Bagasse based Co-generation plants using coal
beyond 15% after complying with the prevailing environmental laws and
regulations, however, may file appropriate application before the
Commission for determination of tariff as per law.”
ii) Imposition of Renewable Purchase Obligation on Captive
Co-generation plants using fuel other than renewable source for
power generation
The Commission issued order in the above matter on 4th August, 2015,
deciding as follows:
“In the light of the order dated 13.05.2015 of the Hon’ble Supreme Court in
the Civil Appeal No. 4417/2015, the Commission hereby decides to recall
with immediate effect, its decision taken in the Commission’s meeting held
on 08.05.2013, not to impose Renewable Purchase Obligation [RPO] on
captive consumers or open access consumers consuming electricity
obtained from cogeneration plants using sources other than renewable
sources for generation of electricity.”
iii) Notification of Pooled Cost of Purchase for the purpose of Renewable
Energy Certificate (REC):
The Commission has notified the pooled cost as per actuals for the FY16 at
Rs.3.10 /unit vide its notification-dated 31.03.2016, which was published in the
gazette of Karnataka on 22.04.2016. Further, in the said Notification, the
Commission has retained the pooled cost at Rs.3.10 per unit for the 2016-17
also, as an interim measure.
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iv) Fuel Cost Adjustment Charges (FAC):
The Commission has issued orders on Fuel Cost Adjustment Charges for each
quarter of the FY16, as detailed below:
(a) FAC Order dated 25th June 2015 for the period January to March, 2015 to be
billed in July to September, 2015:
In view of the overall decrease in fuel cost in the fourth quarter of the FY15
and overall increase in power purchase cost, the Commission decided to
allow the ESCOMs except MESCOM and GESCOM to adjust the savings and
FAC against the overall increase in power purchase cost. Further, the
recoverable FAC of Rs.14.81 Crores and Rs.1.64 Crores in respect of the
MSECOM and the GESCOM respectively was ordered to be factored during
APR for the FY15.
(b) FAC Order dated 21st September, 2015 for the period April to June, 2015 to
be billed in October to December, 2015:
In accordance with the provisions of the KERC (Fuel Cost Adjustment
Charges Regulations, 2013, the Commission considering the increase in fuel
cost adjustment charges along with the overall increase in power purchase
cost during the first quarter of the FY16, decided to allow the ESCOMs to
collect the following fuel cost adjustment charges in paise per unit of sales,
during the billing quarter October – December, 2015:
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Karnataka Electricity Regulatory Commission Page 50
ESCOM FAC in
Paise
per unit
BESCOM 10
MESCOM 11
CESC 9
HESCOM (including HRECS) 9
GESCOM 13
(c) FAC Order dated 15th December, 2015 for the period July to September,
2015 to be billed in January to March, 2016:
The Commission, having recognized the increase in fuel cost adjustment
charges and also the overall increase in power purchase cost during July to
September, 2015, decided to allow all the ESCOMs to collect the following
fuel adjustment charges per unit of sales during the billing quarter January –
March, 2016:
ESCOM FAC in Paise per unit
BESCOM 4
MESCOM 3
CESC 4
HESCOM
(including HRECS)
5
GESCOM 5
(d) FAC Order dated 21st March, 2015 for the period October to December,
2015 to be billed in April to June, 2016:
The Commission, having considered the increase in fuel cost adjustment
charges and also the overall increase in power purchase cost during the third
quarter of FY16, decided to allow all the ESCOMs to collect the following fuel
adjustment charges per unit of sales during the billing quarter April – June,
2016:
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Karnataka Electricity Regulatory Commission Page 51
ESCOM FAC in Paise per unit
BESCOM 1
MESCOM 4
CESC 2
HESCOM (including HRECS)
3
GESCOM 4
(7) Renewable Energy (RE) PPAs approved upto March, 2016 by the
KERC:
The cumulative status of ESCOM-wise gist of PPAs approved by the
Commission is as follows:
Table- NCE PPAs approved by KERC (cumulative up to March 2016)
Total Terminated PPAs BESCOM
MESC
OM CESC HESCOM GESCOM
SL.
No Type
No. of
PPAs
Capacity
in MW
No. of
PPAs
Capac
ity in
MW
No. of
PPAs
Capacity
in MW
No. of
PPAs
Capa
city in
MW
No.
of
PPAs
Capac
ity in
MW
No.
of
PPAs
Cap
acity
in
MW
No.
of
PPAs
Capacity
in MW
1 Wind 589 2173.75 1 7.59 293 1215.04 42 149.35 50 118.25
162 607.9 43 90.85
2 Mini Hydel 79 637.53 2 4.5 14 161.45 25 217.28 19 117.7
5 31.7 18 113.9
3 Bio-mass 17 98.6 0 0 8 49 1 4.5 3 17.6
0 0 5 27.5
4 Co-gen 13 183.9 3 43.22 1 24 0 0 3 47.22
10 128.9 2 27
5
Solar
PV/Therm
al 1097 1859.51 0 0 721 1091.69 24 83.71
51 141.57
136
282.3
7 165 260.17
6 Captive 1 10 1 10
7
waste to
Energy 0 0 0 0 0 0 0 0
0 0 0 0
Total 1796 4963.29 6 55.31 1038 2551.18 92 454.84 126 442.34 313
1050
.82 233 519.42
NCE PPAs approved during the FY16
The ESCOM wise summary of PPAs approved by the Commission during the
FY16 is as follows:
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Karnataka Electricity Regulatory Commission Page 52
Table- NCE PPAs approved by the KERC during the FY16
Type
BESCOM MESCOM CESC HESCOM GESCOM Total
No of PPAS
Capacity No of PPAS
Capacity No of PPAS
Capacity No of
PPAS Capacity
No of
PPAS Capacity
No of PPAS
Capacity
Wind 2 4.2 2 3.5 4 7.7
Solar 711 1017.69 19 56.71 46 108.57 132 252.37 162 234.17 1070 1669.51
Captive 1 10
1 10
Total 712 1027.69 19 56.71 46 108.57 134 256.57 164 237.67 1075 1687.21
Table- NCE Supplemental PPAs approved by KERC during FY16 Capacity in MW
Type
BESCOM MESCOM CESC HESCOM GESCOM Total
No of PPAS
Capacity No of
PPAS Capacity
No of PPAS
Capacity No of PPAS
Capacity No of PPAS
Capacity No of PPAS
Capacity
Wind 10 100.1
4 9 6 80 2 3.75 22 192.85
Mini Hydel
0 0
Solar 1 10 1 10 5 33
1 10 8 63
Bio Mass 1 9
1 9
Co-Gen
1 9
1 9
Total 12 119.1 1 10 9 42 7 89 3 13.75 32 273.85
(8) The new directive issued by the Commission in its tariff orders for the
ESCOMs dated 30th March, 2016 is as follows:
Directive on Energy Conservation:
In view of the increase in cost of electricity and the constraints in capacity
additions to generate additional power to meet the increase in demand, the
Commission decided that it is imperative for all the consumers to use energy
efficient equipment and adopt energy conservation measures, in their daily
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activities to conserve electricity. Therefore, the Commission has directed the
ESCOMs to service all the new installations only after ensuring that the BEE
***** (Bureau of Energy Efficiency five star rating) rated Air Conditioners, Fans,
Refrigerators, etc., are being installed in the applicant consumers’ premises.
Similarly, all new streetlight/high mast installations including extensions made
to the existing streetlight circuits needs to be serviced only with LED
lamps/energy efficient lamps like induction lamps.
Further, the Commission has directed the ESCOMs to take up programmes to
educate all the existing domestic, commercial and industrial consumers,
through media and distribution of pamphlets along with monthly bills,
regarding the benefits of using five star rated equipment certified by the
Bureau of Energy Efficiency in reduction of their monthly electricity bills and
conservation of precious energy.
(9) Discussion Paper issued:
The following discussion paper was issued during the year:
Determination of tariff for Grid-Interactive Rooftop and Small kilowatt scale
solar photovoltaic plants in Karnataka:
The Commission had issued a discussion paper in the matter for
determination of tariff for Grid-Interactive Rooftop and Small kilowatt scale
solar photovoltaic plants in Karnataka. The Commission has received
comments from the stakeholders and the public hearing in the matter has
been fixed during April, 2016. The Commission would be taking further
appropriate action in the matter.
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(10) Studies conducted by the Commission:
(i) Concept paper on power generation from Municipal Solid Waste:
The Commission had engaged the services of The Energy and Resources
Institute (TERI), Bangalore for preparing a concept paper on power
generation from Municipal Solid Waste, the study included the review of the
present status of MSW based projects in the Country, exploring available
technology options and handling of MSW in city municipal corporations in
the State. TERI completed its studies and furnished the final report to the
Commission wherein it has suggested efficient utilization of MSW, tariff for
power generation from MSW and has also recommended treating MSW
power generation as captive power units for the Municipal Corporations.
(ii) Preparation of Guidelines for Estimation of Voltage wise Cost of supply.
The Commission in compliance to the directions issued by the Hon’ble
Appellate Tribunal for Electricity, in Appeal No. 42 of 2014 dated 8th October,
2014 had initiated a study through a Consultant, M/s TERI to suggest a
methodology to estimate Voltage wise Cost of Supply to arrive at the Cross
subsidy in respect of sales to different categories of consumers, broadly
classified under LT, HT and EHT consumers availing power supply at 11kV,
33kV, 66kV, 110kV and LT voltage levels by the distribution utilities. The
Voltage wise cost of supply model developed by the Consultant is in line with
the methodology suggested by the Hon’ble ATE for assessment of loss levels
at different voltage levels on energy inflow basis, apportionment of power
purchase cost on energy input basis and the other costs in proportion to the
sale of energy to different voltage levels.
The above report has been circulated to all ESCOMs for implementation.
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(iii) Prudence check of Capital expenditure of KPTCL and ESCOMs.
The Commission, with a view to verify the prudence of capital investment
made by Transmission and Distribution licensees has been conducting
prudence check of categorized/capitalized works and on procurement
every year. The prudence check is carried out by engaging the services of
the professional consultants, based on the common guidelines brought out
by the Commission.
During FY16, while determining the tariff for Transmission and Distribution
licensees for the fourth control period of MYT regime, the Commission
decided to adopt a transparent method of inviting bids through
E-procurement portal for conducting prudence check of categorized and
procurement works of the FY15 pertaining to Transmission and Distribution
licensees. The tender was invited and successful bidders/consultants were
selected and the work of Prudence check of capital investment of
Transmission and Distribution licensees were awarded.
Based on the findings of the prudence check of capital expenditure
pertaining to categorized/capitalized works, and procurement of the FY15,
the Commission has disallowed interest and depreciation charges on the
works, which are found to be not meeting the norms of Prudence in respect
of HESCOM. In case of the KPTCL, the other remaining ESCOMs and HRECS,
the categorized/capitalized works and procurement were found to be
meeting the norms of prudence.
(11) Mitigating Transmission constraints in the State:
The ESCOMs had identified transmission constraints causing difficulties in
power flow resulting in interruption of power supply, especially in BESCOM’s
Bengaluru metropolitan area. In this regard, the Commission had conducted
meetings with the KPTCL and the ESCOMs to review transmission constraints
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and directed the KPTCL to initiate action for removal of such constraints.
Further, the Commission had directed the KPTCL to discuss the issues of
transmission constraints with the Commission’s Advisory Committee members
and chalk out a program for mitigating the constraints.
Accordingly, the KPTCL has submitted a report containing the works
envisaged for mitigating the transmission constraints around Bengaluru city.
The KPTCL has stated that, Bangalore Transmission Plan was approved in 91st
Board of Directors meeting dated 25-11-2014 with an estimated cost of
Rs.1720 Crores and the total works proposed are 26 numbers.
(12) Review of performance of KPTCL and ESCOMs:
The Commission is conducting review meetings on quarterly basis, to review
the performance of the KPTCL and the ESCOMs. In case of Transmission utility
(KPTCL), some of the key parameters that are monitored are as follows:
i. Progress of construction of substations, transmission Lines and
augmentation of substations and line capacity;
ii. Transmission availability on monthly basis;
iii. Maintenance of Capacitor Banks installed in substations;
iv. Failure and repairs to Power transformers, are reviewed;
v. Mitigation of transmission constraints;
In case of the ESCOMs, the following important parameters pertaining to the
distribution business are reviewed:
i. Quality of supply in terms of interruptions, interruption duration;
ii. Metering of Distribution transformers;
iii. Failure of distribution transformers;
iv. Energy audit of Divisions, towns and Cities and 11kV feeder losses;
v. DCB analysis, billing and collection efficiency;
vi. Providing of infrastructure to regularized UNIP Sets;
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vii. Status of pending application for power supply;
viii. Accidents- fatal and non-fatal;
ix. Progress of implementation of NJY Scheme;
x. Progress of implementation of DSM in Agriculture;
The Commission has issued directions to the KPTCL and the ESCOMs to
improve their system reliability, reduce interruptions and to improve quality of
power supply. The Commission has directed the ESCOMs to Monitor the
interruptions and identify the feeders having more than 60 interruptions per
month and feeders having more than 30 hours of interruption per month and
take suitable action to reduce the interruption and its durations. The
Managing directors have been directed to closely monitor the interruptions
above the target levels and take corrective actions thereon.
Similarly, the Commission is monitoring the number of hazardous installations
existing in the ESCOMs and the action taken to reduce accidents. The
Commission had also noted the high failure rate of transformers in some of
the ESCOMs, resulting in huge interruptions and inconvenience to the
consumers and hence directed the ESCOMs to take appropriate action to
reduce the failure rate.
In the matter of metering of distribution transformers, energy audit and
improving collection efficiency, the Commission had issued suitable directions
to the ESCOMs to improve their existing status.
(13) Meetings of the Commission:
The Commission had held 38 meetings to discuss various issues on the power
sector during the year. The following are some of the important subjects
discussed in the Commission’s meetings.
1. Approval of the APR for the FY15 and ARR for the FY17-19 of the KPTCL, all
the ESCOMs, the SEZs and the Hukeri RECS.
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2. Revision of tariff of the KPTCL, all the ESCOMs, the SEZs and the Hukeri
RECS for the FY17.
3. Revision of generic tariff for solar PV and thermal power plants.
4. Review of power position in the State.
5. Approval of medium/short-term power procurement proposals and
power purchase agreements.
6. Approval of deviations in bidding documents proposed by the PCKL and
related issues.
7. Issue of New Regulations on DSM, Grid Code, Terms & Conditions on
Generation Tariff, Smart Grid.
8. Issue of Amendments to existing Regulations.
9. Initiation and review of studies on various matters like energy generation
from municipal solid waste, voltage wise cost of supply and developing
financial management framework and capex for the ESCOMs.
10. Monitoring and Review of compliance of Renewable Purchase
Obligation by the ESCOMs and other obligated entities.
11. Approval of Fuel Cost Adjustment Charges (FAC) for each quarter of the
year.
12. Prudence check of capital expenditure of the KPTCL, the ESCOMs and
the HRECS.
13. Nomination of Members to the Advisory Committee and District level
Consumer Grievance Redressal Forums.
14. Other administrative matters of the Commission.
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Advisory Committee
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11. ADVISORY COMMITTEE OF THE COMMISSION
11.1 Provisions under Electricity Act 2003:
In pursuance of the provisions contained in Section 34 of the Karnataka
Electricity Reforms Act, 1999 and Section 87 of the Electricity Act, 2003, the
Commission has established a State Level Advisory Committee to advise the
Commission on:
(i) major questions of policy;
(ii) matters relating to quality, continuity and extent of services provided by
the Licensees;
(iii) compliance by the Licensees with the conditions and requirement of
their licence;
(iv) protection of consumers’ interest; and
(v) electricity supply and overall standards of performance by utilities.
A List of the present Members of the Advisory Committee is placed in
Annex- 2.
The Commission has included the Chief Engineer, SLDC, KPTCL Bengaluru as
an invitee in the committee.
11.2 Brief account of the important issues discussed in the meetings:
During the year, three meetings of the Advisory Committee were held.
(1) In the 45th meeting held on 7th July, 2015 the Committee reviewed the
power position in the State. The Committee also reviewed the progress
and benefits of the Niranthara Jyothi Yojana (NJY) taken up by the
ESCOMs. The Committee discussed the advantages of the smart grid
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and decided to adopt it in the ESCOMs based on the pilot scheme
taken up in the CESC.
(2) In its 46th meeting held on 29th October, 2015, the Committee discussed
the possibility of establishing pumped storage generating plants in the
State to mitigate the problems posed due to injection of infirm power
from renewable energy sources like wind and solar. The Committee
deliberated on the status of implementation of NJY scheme in the
BESCOM and the results of wire to water efficiency in Byadagi sub-
division of the HESCOM.
(3) In its 47th meeting held on 10th March, 2016 the Committee discussed the
ARR / Tariff proposals of the KPTCL, the ESCOMs, the HRECS and the SEZs.
The Committee suggested reduction of transmission and distribution
losses.
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Commission’s Court Orders
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12. COMMISSION’S COURT PROCEEDINGS:
The Commission generally holds court proceedings for adjudication of
disputes of licensees on Thursday of every week besides conducting public
hearing from time to time on various issues / petitions to be decided by the
Commission.
The details of petitions for resolution of disputes and complaints filed before
the Commission during the year and the status of their disposal as on
31.03.2016 is indicated below:
Sl
No.
Details of cases Total
1 No. of cases pending as on 1.4.2015 45
2 No. of cases filed during the year 78
3 No. of cases disposed during the year 60
4 Cases pending at the end of the year 63
The Details of Petitions, Complaints, Review Petitions and other cases
disposed of during the period from 1st April, 2015 to 31st March, 2016 are as
follows:
Sl.
No.
Case No. Date of
filing
Parties Subject Date of
Disposal
1 Complaint
1/15
3.2.15 Vidyut Grahakara Hitarakshana
Vedike and another vs BESCOM
& others
Occupancy certificate for
permanent electricity supply
9.4.15
2 Complaint
12/13
19.8.13 S Govindappa vs BESCOM Defective Implementation of
Niranthara Jyothi Scheme
14.5.15
3 OP 28/10 06.07.10 Konark Power Project Ltd. V/s
BESCOM
Regarding amendment to PPA 16.9.10/
26.5.15
4 Complaint
2/13
18.3.13 Sri Indra Power Energies Ltd vs
GESCOM & others
Non-compliance of order in OP
1/12
18.6.15
5 Complaint
6/13
9.5.13 Davanagere Sugar Company
Ltd vs SLDC
Contravention of the order in OP
4/12
18.6.15
6 OP 8/15 16.2.15 Sri Sai Deepthi Power Pvt Ltd vs
KPTCL & others
Redetermination of tariff 16.7.15/
10.9.15
7 OP 9/15 20.2.15 VRL Logistics Ltd vs HESCOM Interest on delayed payments 16.7.15
8 OP 14/15 5.5.15 Dishaa Power Corporation Ltd vs
BESCOM & others
Termination of PPA 23.7.15
9 OP 5/15 21.1.15 BESCOM vs nil Modification of standard format
of PPAs for NCE projects
22.7.15
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 64
10 OP 13/13 18.4.13 Gokak Sugars Ltd vs HESCOM Fixation of tariff as per order
dated 29.3.12
30.7.15
11 Y/04/12 Against GESCOM RPO compliance 4.8.15
12 OP 10/14 11.4.14 Athani Sugars Ltd vs HESCOM &
others
Payment for the energy wheeled 6.8.15
13 RP 4/14 6.8.14 KPTCL & others vs Ugar Sugar
Works Ltd & another
Review of order in OP 12/12 6.8.15
14 RP 8/14 KPTCL & others vs NSL Sugars Ltd Review of order dated 29.5.2014
in OP No. 1/13
27.8.15
15 RP 3/14 17.7.14 Haveri Bio energy Pvt Ltd vs State
of Karnataka & others
Review of order in OP No. 18/13
dated 10.7.14
24.9.15
16 OP 28/15 21.9.15 BESCOM vs nil Billing on KVAH basis instead of
KWhr basis
15.10.15
17 RP 3/15 20.8.15 Ranka N Ranka infrastructure Pvt
Ltd vs BESCOM & others
Review of order dated 31.7.14 on
amendment to PPA
15.10.15
18 Complaint
6/14
12.12.14 Sai Sudhir Energy (Chitradurga) P
Ltd vs CESC
Disobedience of the order dated
14.11.2014 in OP 24/14
19.11.15
19 OP 26/14 18.7.14 Devar Power Ltd vs KPTCL &
others
Revision of Tariff and
amendment of PPA
19.11.15
20 OP 17/15 28.5.15 BESCOM vs nil Modification of formula of FAC 19.11.15
21 OP 7/15 16.2.15 Bonal Hydro Electric Company
Pvt Ltd vs KPTCL & others
Redetermination of tariff 19.11.15
22 OP 15/15 6.5.15 Star Metallics & Power Pvt Ltd vs
GESCOM
Captive status 19.11.15
23 OP 32/14 26.11.14 Lalpur Wind Energy P Ltd vs
KPTCL & others
Credit of banked energy 26.11.15
24 RP 6/13 2.8.13 BESCOM vs nil Review of the tariff order dated
6.5.13 reg: O & M expenses, RoE,
Loan, etc
10.12.15
25 OP 6/15 11.2.15 R B Seth Shreeram Narsingdas vs
KPTCL & others
Credit of banked energy 10.12.15
26 Y/04/12 Against BOSCH Ltd & SLDC RPO compliance 10.12.15
27 OP 29/15 28.9.15 BESCOM vs nil DELP scheme 15.12.15
28 OP 30/15 30.9.15 CESC vs nil DELP scheme 15.12.15
29 OP 31/15 1.10.15 GESCOM vs nil DELP scheme 15.12.15
30 OP 32/15 1.10.15 HESCOM vs nil DELP scheme 15.12.15
31 OP 35/15 9.10.15 MESCOM vs nil DELP scheme 15.12.15
32 Complaint
4/14
30.9.14 NSL Sugars Ltd vs KPTCL & others Non-compliance of order dated
29.5.14 in OP 1/13
7.1.16
33 OP 25/15 9.9.15 D Subrahmanya Bhat vs
Secretary, KERC
Furnishing free copy of tariff
order of MESCOM
7.1.16
34 Complaint
13/13
6.12.13 Cauvery Hydro Energy Ltd vs
KPTCL & others
Non-compliance of order in OP
47/10
7.1.16
35 RP 5/13 2.8.13 KPTCL vs nil Review of the tariff order dated
6.5.13 reg: O & M expenses
7.1.16
36 RP 5/14 8.8.14 BESCOM vs nil Review of tariff order dated
12.5.14
7.1.16
37 OP11/15 8.4.15 Narayanpur Power Company Pvt
Ltd vs GESCOM
Payment 7.1.16
38 OP 43/15 10.12.15 Indian Machine Tools
Manufacturers’ Association &
another vs BESCOM
Fixing separate tariff and tariff
category
21.1.16
39 OP 11/14 16.4.14 Shahi Exports Pvt Ltd vs KPTCL &
others
Construction of EHT line 28.1.16
40 RP 9/14 12.11.14 CLP Wind Farms (I) Pvt Ltd vs
BESCOM
Review of order dated 14.8.14
in OP No. 21/13
4.2.16
41 OP 14/14 6.5.14 Graphite India Ltd vs MESCOM &
others
Restoration of Double circuit 11
kV line
11.2.16
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 65
42 OP 33/14 16.12.14 Ravikiran Power Projects Pvt Ltd
vs GESCOM & others
Wheeling and banking 11.2.16
43 RP 6/14 8.8.14 KPTCL vs nil Review of tariff order dated
12.5.14
11.2.16
44 OP 37/14 22.12.14 Trishul Power P Ltd vs KPTCL &
others
Determination of tariff 18.2.16
45 Complaint
1/16
29.1.16 Soham Phalguni Renewable
Energy Pvt Ltd vs KPTCL & others
Non compliance of order in OP
No. 48/12
18.2.16
46 OP 16/14 22.5.14 KPCL Vs BESCOM & others Tariff for RTPS Units 1-7 25.2.16
47 OP 17/14 22.5.14 KPCL Vs BESCOM & others Tariff for BTPS Unit 1 25.2.16
48 OP 19/14 4.6.14 KPCL vs BESCOM & others Tariff for hydel projects 25.2.16
49 OP 1/15 13.1.15 Renew Wind Energy (AP) Pvt Ltd
vs SLDC & others
Payment for energy delivered 10.3.16
50 OP 10/15 31.3.15 Shilpa Medicare Ltd vs KPTCL &
others
Credit of banked energy 10.3.16
51 OP 21/15 18.8.15 Karnataka State Electrical
Contractors Association vs
BESCOM & others
Amendment to Recovery of
Expenditure Regulations, 2004
24.3.15
52 OP 22/15 24.8.15 Vidyut Grahakara Hitarakshana
Vedike vs BESCOM & others
-do- 24.3.15
53 OP 2/15 14.1.15 Shah Distributors vs GESCOM Payment from CoD 31.3.16
54 OP 3/15 19.1.15 Shri Krishna Minerals-1 vs
GESCOM & another
Payment from CoD 31.3.16
55 OP 4/15 19.1.15 Shri Krishna Minerals-2 vs
GESCOM & another
Payment from CoD 31.3.16
56 Suo motu
case no. 1/15
Savitha Oil Technologies Ltd &
CESC
Revision of tariff based on CoD 31.3.16
57 Suo motu
case no. 2/15
Savitha Oil Technologies Ltd &
CESC
Revision of tariff based on CoD 31.3.16
58 Suo motu
case no. 3/15
Avon cycles Ltd & CESC
Revision of tariff based on CoD 31.3.16
59 Suo motu
case no. 6/15
Canara PCC Poles & HESCOM Revision of tariff based on CoD 31.3.16
60 Suo motu
case no. 7/15
Atria Power Corporation Ltd &
BESCOM
Revision of tariff based on CoD 31.3.16
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 66
Electricity Ombudsman
&
Consumer Grievance of Redressal Forum
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 67
13. CONSUMER GRIEVANCES REDRESSAL:
(1) Performance of Ombudsman:
The Commission has appointed an Ombudsman under Section 42(6) of the
Electricity Act 2003, to hear and dispose of the grievances of the consumers
who prefer to challenge the orders of the Consumer Grievance Redressal
Forum (CGRF) constituted at the ESCOMs level.
During the financial year 2015-16, 48 cases were registered and 6 cases were
brought forward from the previous fiscal year, totalling to 54 cases. Of these,
the Electricity Ombudsman has conducted hearing and disposed of 29 cases
during the year, leaving a balance of 25 cases.
The subjects dealt with by Ombudsman mainly relate to back billing, slow
recording of meters and extending Time of Day facility.
(2) Review of the working of Consumer Grievance Redressal Forums (CGRF)
Consumer Grievance Redressal Forum have been established by the
Distribution Licensees in every Revenue District of their jurisdiction, which is
chaired by an officer of the Licensee not below the rank of Superintending
Engineer and one Member being officer of the Licensee not below the rank
of Executive Engineer. The KERC had nominated one Member to each CGRF
from among the persons who have experience or knowledge of electricity
sector/consumer affairs from various fields.
The creation of CGRFs in each revenue district has helped consumers to get
their grievances redressed expeditiously at district level itself, which saves
them considerable time and cost.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 68
During the financial year 2015-16, the ESCOM wise status of grievances
redressed is as follows:
Name of
ESCOM
Opening
balance
Filed during
the year
Disposed
during the
year
Balance at
the end of
the year
BESCOM 16 95 53 58
MESCOM 5 10 13 2
CESC 4 9 12 1
HESCOM 33 99 116 16
GESCOM 22 9 18 13
TOTAL 80 222 212 90
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 69
Programme for FY17
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 70
14. PROGRAMME FOR THE YEAR AHEAD
The following activities are planned for the FY17:
(1) Review of performance of ESCOMs:
With a view to improve the services to the consumers, the Commission would
continue to review the performance of the ESCOMs on parameters like
quality of supply, energy audit, interruptions, accidents, providing new
services, billing and collection, replacement of faulty meters etc. The
Commission would hold quarterly meetings with the ESCOMs and review their
performance and direct them to take corrective measures wherever
necessary.
(2) Prudence check of capital expenditure incurred by KPTCL and Distribution
Licensees for FY16:
The Commission would initiate Prudence check of capital expenditure
incurred by KPTCL and Distribution Licensees while reviewing the annual
performance for FY16. The Commission will conduct the prudence check of
capex as per the guidelines issued earlier. The prudence of capital
expenditure and procurement of material during FY16 would be analysed for
considering allowance of interest on loan and depreciation for FY16.
(3) APR for the FY16 and Revision of the ARR/Retail Supply Tariff of Distribution
Licensees for FY18:
The Commission will review the ARR of KPTCL/ESCOMs and SEZs for FY18 along
with the APR for the FY16. Subsequently, based on the revised ARR, the retail
supply tariff is proposed to be revised.
(4) Fuel Cost Adjustment Charges:
In accordance with the KERC (Fuel Cost Adjustment Charges) Regulations
2013, the Commission would determine the fuel cost adjustment charges for
each quarter of the financial year 2016-17.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 71
(5) Regulations on Renewable Energy:
The Commission proposes to issue Regulations on determination of Tariff for
Renewable sources of energy (Solar energy). The proposed Regulations
would include norms on financial and technical parameters. The proposed
Regulations would also specify the tariff determination methodology and
term of tariff.
(6) Review of compliance to Directives:
The Commission would periodically review the compliance of the ESCOMs on
various directives issued in the Tariff Orders dated 30th March, 2016.
(7) Revision of tariff for grid-interactive rooftop and small kilowatt scale solar
photovoltaic plants.
The Commission would issue appropriate orders revising the tariff for these
plants based on the comments / suggestions received to its discussion papers
on the subject.
(8) Promotion of power generation from Municipal Solid Waste.
The Commission would consider determination of appropriate preferential
tariff for promoting power generation from Municipal Solid Waste.
(9) Improvement of the functioning of Consumer Grievance Redressal
Forums.
The Commission would take necessary measures to make the Consumer
Grievance Redressal mechanism more effective and efficient by interacting
with all the stakeholders.
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 72
ANNEXURE - I
ORGANISATION CHART
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 73
ANNEXURE – II
LIST OF MEMBERS OF STATE ADVISORY COMMITTEE OF KERC
1. The Managing Director
Karnataka Power Transmission
Corporation. Ltd., Cauvery Bhavan,
Kempegowda Road,
Bengaluru -560 009
Ph : 080-22214342/22244556
2. The Managing Director
Karnataka Power Corporation Ltd.
Shakti Bhavan, Race Course Road,
Bengaluru – 560 001
Ph: 080 –22255606 /22204153
3. The Managing Director
Bangalore Metro Rail Corporation
Ltd,
3rd Floor, BMTC Complex,
K H Road, Shanthinagar,
Bengaluru – 560 027
4. Sri C A Subbaiah
Basavanagudi Estate,
Badaga Banangala Village, Maldare
(P.O)
Kodagu- 571 253
5. President,
KASSIA, No.2/106, 17th Cross
Magadi Chord Road, Vijayanagar,
Bengaluru – 560 040.
Ph: 28362178(O), 23493353 ( R),
9845031122
6. Director General,
Central Power Research Institute,
(CPRI), Prof. Sir. C. V. Raman Road,
Sadashivanagar, BANGALORE–560
080
(M) 9448362457
7. The Secretary to Government
Dept. of Food & Civil Supplies &
Consumer Affairs, M.S. Building
Bengaluru – 560 001
Ph:22259024
8. The Managing Director
BESCOM
K.R.Circle
Bengaluru – 560 001
Ph: 22354929
9. The Managing Director
GESCOM
Station Road
GULBARGA -585 101
08472-256581; 9449597444
10. Sri B.G.Rudrappa
Former Chairman –KEB
278/2,9th ‘A’ Main Road, II Block,
Jayanagar, Bengaluru -560 011
Phone: 080 –26563366
11. Dr. R .S .Deshpande,
No. 405, 5th Main,
Kendra Upadhyayara Sangha
Layout, Nagarabhavi Post,
Bengaluru – 560 072.
Ph:23215555; (M)9845436096
12. Dr. S.L.Rao,
D1, Chartered Cottage,
Langford Road
Bengaluru – 560 025
(M) 9343198450 (R) 080-22275132
13. The President,
Karnataka Chamber of Commerce
& Industry,
G. Mahadevappa Karnataka
Chamber Building, J.C. Nagar,
HUBLI- 580 020.
Ph: 0836-2218234/5
14. President
Confederation of Indian Industry
Karnataka State Branch
1086, 12th Main HAL 2nd Stage,
Indiranagar
Bengaluru – 560 008 (Ph. 25276544)
17thAnnual Report
2016
Karnataka Electricity Regulatory Commission Page 74
15. Sri V Ramakrishna
No. 490, 10th cross,
Sadashivanagar,
Bengaluru - 560 080
Ph: 9008344948
16. Sri Deepak Gala
C/o Hyderabad Karnataka
Environment Awareness and
Protection Organisation, No. 8-142,
Asif Ganj,
Kalaburagi- 585 101
Ph. 9036191000
17 Sri M G Prabhakar
Chairman for Energy Committee,
FKCCI, Federation House,
K G Road,
Bengaluru- 560 080
Ph: 080 22262355
Invitees
The Additional Chief Secretary to
Government,
Department of Energy,
Vikasa Soudha,
Bengaluru – 560 001
Ph: 22252373
The Managing Director
MESCOM, Paradigm Plaza
A.B.Shetty Circle
MANGALORE –575 001
0824-2444300
The Chief Engineer,
Karnataka State Load Despatch Centre,
KPTCL, Race Course Road,
Bengaluru -560 009.
Ph. 9448471411; 22267034
The Managing Director
CESC, No.927, L.J. Avenue
New Kantharaja Urs Road,
Saraswathipuram
MYSORE – 570 009
Ph: 0821 –2417101
Director Technical,
Karnataka Power Transmission
Corporation Ltd.
Cauvery Bhavan, Kempegowda Road,
Bengaluru -560 009
Ph: 22229496
The Managing Director
HESCOM
P B Road, Navanagar,
HUBLI – 580 025
Ph: 0836-2322771; 9448277614
Managing Director,
Karnataka Renewable Energy
Development Ltd. (KREDL),# 39, "Shanthi
Gruha", Palace Road,
Bengaluru - 560 001
Ph:080- 22207851/ 22208109.
Vice President, BCIC
And Chairman, Energy, Environment
and Water Expert Committee,
Bangalore Chamber of Industry
and Commerce,
No. 3 / 4, 3rd floor, C Block,
Unity Buildings, J C Road,
Bengaluru – 560 002.
Ph: 080-22223321
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