assam electricity regulatory commission annual report … · assam electricity regulatory...

Assam Electricity Regulatory Commission Annual Report – 2011-12

Foreword

The annual report of the Commission is prepared as per the Section 105 of Electricity

Act 2003. Though the report for the FY-2011-12 had to be published long back but due to

some inadvertent and unavoidable reasons it could not be done.

The annual report of Assam Electricity Regulatory Commission contains a summary of

the activities of the Commission along with the audited financial statements for the

particular year.

During the period, the Commission undertook a number of initiatives in effective

implementation of its wide ranging responsibilities as envisaged in the Electricity Act 2003.

The Act has entrusted the Commission with the responsibilities/functions (in addition to the

tariff fixation) to create an environment conducive to promoting growth, efficiency and

economy in the power sector as well as to safeguard the interest of the consumer.

In the FY-2011-12, the Commission drafted as many as four new regulations and two

amendment regulations. The Commission passed order of the MYT Petition for the period

2010-11, 2011-12 and 2012-13, filed by the three utilities of Assam viz Assam Power

Distribution Company Limited (APDCL), Assam Power Generation Corporation Limited (APGCL)

and Assam Electricity Grid Corporation Limited (AEGCL).

In the said order passed in May, 2011, some new directives have been incorporated

for improvement of the said companies. The order included the truing up for FY-2007-08

and 2008-09 for all the three companies.

The Commission also issued tariff order in respect of M/S EIPL, erstwhile DLF for

the FY-2008-2009 in the month of October 2011.

The Consumer Advocacy Cell functioning under the Commission has continued to

provide necessary support and guidance to the valued electricity consumers by way of direct

interaction as well as through periodic news letters published by the Commission.

Last but not the least the commission is thankful to the Government of Assam for

providing all kinds of support to the Commission and to various other stakeholders. The

Commission expects such support in future too.

29.06.2013

(Dr. Rajani Kanta Gogoi)

Member & Chairperson (Officiating),

Assam Electricity Regulatory Commission


Page 2

INDEX

1 Introduction

2 Functions of the Commission

3 Mission of the Commission

4 Profiles of the Chairperson and Members

5 Commission’s Office

6 Organisational Chart

7 Existing Manpower as on 31.03.2012

8 Training and Conferences

9 State Advisory Committee

10 Consumer Advocacy Cell & Consumer Awareness

11 Functioning of CGRFs and Ombudsman

12 Regulations issued by the Commission

13 MYT Tariff Petitions for 2010-11, 2011-12 & 2012-13

14 Process for ARR & Tariff determination

15 MYT Order for 2010-11 to 2012-13

16

17

Tariff Schedule

Important Directives to APDCL in Tariff Order for FY 2010-13 for better quality of power supply to consumers.

18 Important Achievements for FY 2011-12

19 Finance and Accounts

20 Conclusion

Annexure – I


Page 3

1. INTRODUCTION

1.1. The Assam Electricity Regulatory Commission (hereinafter referred to as the AERC

or the Commission) was established under the Electricity Regulatory Commissions

Act (hereinafter referred to as the ERC Act), 1998 on February 28, 2001. The AERC

came into existence in August 2001 as a one-man Commission. Considering the

multidisciplinary requirements of the Commission, it was made a multimember

one constituting three Members (including Chairperson) from 27th January, 2006.

The Commission has started functioning as Multimember Commission on joining

of two members from 1st February, 2006.

1.2. The Commission is mandated to exercise the powers and functions conferred under

Section 181 of the Electricity Act 2003 (36 of 2003) (hereinafter referred to as the Act)

and to exercise the functions conferred to it under Section 86 of the Act from 10th

June 2003.

2. FUNCTIONS OF THE COMMISSION

The Commission is vested under Section 86 of the Act with the responsibility of

discharging the following functions: To

(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;

(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, 2003;


Page 4

(h) specify State Grid Code;

(i) specify or enforce standards with respect to quality, continuity and reliability of

service by licensees;

(j) ix the trading margin in the intra-State trading of electricity, if considered,

necessary;

(k) discharge such other functions as may be assigned to it under the Electricity Act,

2003;

(l) 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; matters

concerning generation, transmission, distribution and trading of electricity

or any other matter referred to the State Commission by the State

Government.

3. MISSION OF THE COMMISSION

(a) To promote competition, efficiency and economy in the activities of the Electricity

Industry within the State of Assam.

(b) To regulate the power purchase and procurement process of the distribution

utilities for sale, distribution and supply of electricity within the State of Assam.

(c) To determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may

be, and the tariff payable for use of transmission facilities, within the State of

Assam.

The Vision of the Commission is:

“to ensure uninterrupted power supply at required voltages to all the consumers so

that they can meet their requirements of power at affordable cost at any time,

thereby the state can develop on the basis of such power supply.”


Page 5

4. PROFILES OF THE CHAIRPERSON AND MEMBERS

i) Shri Jayanta Barkakati, Chairperson – Shri Jayanta

Barkakati is the Chairperson of the Assam Electricity Regulatory

Commission. He joined the Commission on 6th June, 2008. During

this tenure of approximately 2 years, a number of important

regulatory activities were being accomplished. The AERC Tariff

Order for FY 2008-09 & FY 2009-10 was released under his able

guidance. As Chairperson of the Commission, he has given special

impetus to the promotion of renewable energy in the state. The

AERC (Co-generation and Generation of Electricity from Renewable

Sources of Energy) Regulations, 2009 has been framed. Other regulations relating to

renewable energy are being drafted and will soon be notified. Tariffs for a number of Small

Hydro Generating Projects in the state have also been approved during his tenure. Besides,

he has made it a point to relentlessly pursue with the power companies to improve their

performance by lowering their Transmission and Distribution losses. For offering better

quality of power to the consumers, Compliance Reports for Standards of Performance by

the Distribution Licensee have been designed as laid down by the AERC regulations and

forwarded to the Distribution Licensee.

He is a graduate in Electrical Engineering from the Institute of Technology (BHU)

and Post Graduate in Water Resource Development from the University of Roorkee with

specialization In Planning, Management of Hydro Power Schemes, Construction

Technique, Water Resource Structures and Investigation etc. Vastly experienced in the

power sector, Shri Barkakati has extensively worked in all the leading hydro and gas based

combined cycle projects of the North-east under various capacities.

Prior to joining AERC, he was Chairman and Managing Director and Director

(Technical), North Eastern Electric Power Corporation Limited (NEEPCO). As a Board

Member and Chairman of the Corporation he had a dual role in shaping the policy of the

Corporation and reviewing the performance in all fronts in addition to following BPE /

Ministry of Power, Power Policy and guidelines of the Government of India.

ii) Dr. Rajani Kanta Gogoi, Member – Dr. Rajani Kanta Gogoi assumed as a

Member of the Assam Electricity Regulatory Commission on 1st January, 2011.

Dr. Gogoi is a post-graduate in Chemistry, started his service

life as a Lecturer in college. Later on he joined as Assistant Public

Analyst to the Govt. of Assam in the State Public Health Laboratory

from where he got the WHO fellowship to Food and Drug

Administration Laboratory, Washington DC, USA. Returning from

USA, he joined in Assam Petrochemicals Ltd. (APL), Namrup, a state

PSU. During the period of working at APL, he did research and

obtained Ph.D., also MBA. He was a visiting Lecturer in the

department of Petroleum Technology in the Dibrugarh University. He is a certified Lead


Page 6

Auditor of Quality System Standard for ISO:9000. Dr. Gogoi has worked extensively on

total quality management system and attended many short courses on it in different

reputed institutions in India.

In an illustrious career spanning 26 years in Public sector organization and seven

years in the State Government, Dr Gogoi has held different position in APL and retired as

General Manager. After retirement, he acted as ISO:9000 Auditor on behalf of Modi

International on banking sector.

iii) Shri Tapan Chatterjee, Member – Shri Tapan

Chatterjee joined Assam Electricity Regulatory Commission on

01.02.2011. He is B.E. (Electrical), MBA and did Certificate Course in

Russian Language.

He is an officer of Central Power Engineering Service (CPES),

Group A cadre of 1973 Batch of UPSC. He served in the Central

Electricity Authority in various capacities and also as a Consultant to

Gujarat Electricity Regulatory Commission for some period after

retirement from CPES (Gr. A) cadre prior to joining the Commission.

He was on deputation to Narmada Water Disputes Tribunal (1975-80), where he

carried out techno-economic feasibility studies of Hydroelectric Power Stations of

Narmada river basin. He worked in the Design of Hydroelectric Power Stations, EHV

Substations and PLCC in CEA and EREB (1980-81)

In Eastern Regional Electricity Board, Kolkata (1982-85) and Northern Regional

Electricity Board in New Delhi (1985-95), he worked as Executive Engineer in the design

and implementation of Telecommunication and Computerized Load Dispatch Schemes

and Real time Operation of electrical grids.

As Director (1995-2005) he was engaged in operation monitoring of thermal power

stations and coordination of production of coal in coalmines and transportation of coal to

all the thermal power station of the country. He was looking after quality, quantity, price,

fuel supply agreement, payment of royalty and transportation bottlenecks of coal supply.

He was representing CEA in the Infrastructure Meeting in the Cabinet Secretariat and also

in a number of Committees of MOP, MOC, Ministry of Railways, Planning Commission,

Utilities of Power and Coal Sectors. He was Member of the group of the Ministry of Coal

for assessment of requirement of coal for the 10th Five year Plan.

As Chief Engineer (2005-09) he was coordinating the integrated operation of inter

regional grids. During the period he worked as Member of the Technical Coordination

Committees of all the five Regional Electricity Boards now known as Regional Power

Committees of the country and represented CEA in the Board/Committee meetings.

He has published a number of technical papers.

He visited a number of foreign countries on study tours at different times. He lead

a group of engineers from CEA and other Power utilities to US, Canada, UK and other


Page 7

European countries on a study tour of Regulatory and Commercial aspects of electricity

industry in these countries.

iv) COMMISSION’S OFFICE

The Commission is functioning in a rented building at ASEB Complex, Six Mile,

Dwarandhar, Guwahati – 781 022 since 1st January, 2005.

5. ORGANISATIONAL SET UP AS ON 31st MARCH, 2012 IS SHOWN

IN THE CHART AS FOLLOWS :

ORGANISATIONAL CHART OF AERC

Chairperson Member Member

Joint Director

(Tariff)

Secretary of the Commission

Office

Superintendent

Deputy Director

(Engineering)

Consultants /

Adviser (5)

Deputy Director

(Finance)

LDA cum Data

Entry Operator Accountant


Page 8

6. EXISTING MANPOWER DURING FY 2011-12.

CHAIRPERSON AND MEMBERS

Position Held 2011-12 Remarks

1. Chairperson Shri Jayanta Barkakati Joined as Chairperson, Assam Electricity Regulatory Commission on 06.06.2008.

2. Member 1. Shri Himadri Dutta

2. Shri Tapan Chatterjee

Joined as Member, Assam Electricity Regulatory Commission on 01.02.2006 and demitted office on 31.01.2011.

Joined as Member, Assam Electricity Regulatory Commission on 01.02.2011.

3. Member Dr. Rajani Kanta Gogoi Joined as Member, Assam Electricity Regulatory Commission on 01.01.2011

OFFICERS ON DEPUTATION


1. Secretary Smti Gauri Regon, ACS

Shri Manash Jyoti Baruah, ACS

Joined on 01.08.2008 on deputation from the Government of Assam and released from AERC on 21.05.2012 (forenoon).

Joined on 01.08.2012 on deputation from Government of Assam.

2. Joint Director (Tariff)

Shri Dipak Kumar Sarmah On Deputation from ASEB, from 01.12.2009

3. Deputy Director (Engineering)

Shri Tapan Mahanta On Deputation from ASEB, from 21.01.2011.

4. Deputy Director (Finance)

Shri Alik Purkayastha On contract service since 02.07.2007.


Page 9

OTHER STAFF ON CONTRACTUAL SERVICE


1. Office Superintendent

Shri M.C. Bhattacharya On Deputation from STATFED joined on 21.08.2004 and on contractual appointment since 21.08.2007.

2. Accountant Shri G.C. Deka On Deputation from STATFED joined on 21.08.2004 and on contractual appointment since 21.08.2007.

3. P.S. to Chairperson

Ms. Dipty Saikia On Contract Service since 07.04.2010.

4. P.S. to Member Shri Ridib Barman On Contract Service since 29.04.2008.

5. P.S. to Member Ms. Indrani Baruah On Contract Service from 13.06.2011.

6. LDA-cum-Data Entry Operator

1. Shri Bhaskarjyoti Borah.

2. Ms. Sushmita Talukdar

On Contract Service since 01.06. 2006.

On Contract Service since July 2010.

7. Grade IV Employees

1. Manoj Kr. Barman

2. Gajen Kalita

On contract service since 09.06.2005

On contract service since 01.02.2010

In addition, the following Consultants are engaged by the Commission for assisting in various

activities of the Commission.


1. Adviser (Law) Shri A.K. Thakur On contract service (Part Time) since 16.10.2002

2. Sr. Consultant, AERC Shri A.K. Barthakur On contract service since 1.02.2011.

3. Consultant (Finance, Database & Consumer Advocacy)

Ms P. Sharma

On contract service since 07.01.2004.

4. Consultant (Liaison) Shri J. Sharma On contract service since 17.12.2008

5. Consultant (Technical) Shri N.K. Deka On contract service since 01. 02.2010


Page 10

7. TRAINING AND CONFERENCES

During FY 2011-12, the Chairperson and Members of the Commission attended meetings

/conferences as given below:

Date Venue Subject Attended By

16.06.2011 India habitat Centre, New Delhi

24th Meeting of the Forum of Regulators. (FOR)

Shri J. Barkakati, Chairperson

22.09.2011

& 23.09.2011

Hotel Four Seasons, Mumbai

Conference on Investment Opportunities in Energy

Sector in South Asia.


15.12.2011 NEDFI House, Guwahati

Conference on “Powering North East India Attracting

Investment of the Power Sector” organized by IPPAI.


02.02.2012 to

04.02.2012

May Fair Spa Resort, Gangtok (Sikkim)

Meeting of Forum of Regulators (FOR)


15.06.2011 India Habitat Centre, New Delhi

12th Annual Meeting, FOIR Dr. R.K. Gogoi, Member




Dr. R.K. Gogoi, Member

01.03.2012 &

02.03.2012

Ahmedabad & Mount Abu

Meeting cum Seminar of FOIR


Dr. R.K. Gogoi, Member

Shri T. Chatterjee, Member

27.07.2011 Hotel Maurya, Patna (Bihar)

Development of the Power Sector in Bihar







Page 11


16.12.2011

& 17.12.2011

Shrimanta Sankardev Kalakhetra Auditorium

Complex, Guwahati

North East Energy Conclave and Environment

Development Opportunities By CII


During FY 2011-12, the following officers of AERC attended training programmes.


18.07.2011

to 23.07.2011

IIT, Kanpur FOR’s 4th Capacity Building Programme

for officers of Electricity Regulatory

Commissions on various facets of

Regulatory Issues in Power Sector

Shri T Mahanta, Deputy Director (Engg)


Conference on “Powering North

East India Attracting Investment of the

Power Sector” organized by IPPAI.

This was attended by all officers / consultants of the

Commission.

27.02.2012 to

02.03.2012.

Administrative Staff College of India (ASCI), Hyderabad.

SAFIR Flagship Programme,, the 11th Core Programme on

Infrastructure Regulation and

Reforms.

Ms. Panchamrita Sharma, Consultant (Finance,

Database & CAC)


Page 12

8. STATE ADVISORY COMMITTEE

During 2011-12, the 15th meeting of the State Advisory Committee of the Assam Electricity

Regulatory Commission was held on 17th February, 2012 at the Assam Administrative Staff

College at Khanapara, Guwahati.

The main issues in the agenda for discussion were as follows:

1. i) Appraisal of the MYT tariff Orders for FY 2010-13 of the Commission dated 16.05.2011 in

respect of APGCL, AEGCL and APDCL against their petitions for FY 2010-11, 2011-12 and

2012-13.

ii) Appraisal on Tariff Order of the Commission dated 20.10.2011 for FY 2008-09 in respect

of M/s EIPL (DLF).

2. Discussion on:

a) AERC (Demand Side Management) Regulations, 2011.

b) Draft AERC (Furnishing of Technical Details by Generating Companies) Regulations,

2012

c) Draft AERC (Terms and Conditions for Tariff Determination from Renewable Energy

Sources) Regulations, 2012.

d) Draft AERC (Compliance Audit) Regulations, 2012.

e) Draft Amendment of the AERC (Electricity Ombudsman) Regulations, 2011 and

f) Draft Amendment to the AERC (Fuel and Power Purchase Price Adjustment Formula)

Regulations, 2010

3. Constitution of Monitoring Committees for –

i) Improvement of quality of power supply and standard of performance of APDCL;

ii) Review of performance of APGCL;

iii) Review of performance of AEGCL.

4. Appraisal of the Judgment of the Appellate Tribunal for Electricity in Appeal OP No. 1 of

2011 dated 11.11.2011 on tariff revision.

5. Presentation by APDCL/APGCL on implementation of FPPPA Formula Regulations.

6. Tariff for Open Access Consumers in light of the circular of the Ministry of Power, GOI,

dated 30.11.2011.


Page 13

9. THE CONSUMER ADVOCACY CELL & CONSUMER AWARENESS

The Consumer Advocacy Cell of Assam Electricity Regulatory Commission formed on

4th February, 2005. The Cell has embarked upon different activities during the period of

time for promoting awareness among consumers on power related matters. The Cell

empanels consumer groups/ NGOs from different parts of Assam from time to time for

consumer participation in important regulatory matters. A power information bulletin

titled “The Electricity Consumer Grid” is also published consisting of useful

information to consumers like – Mechanism for complaint redressal, important tips to

electricity users and other power related information. Ten editions of this bulletin have

been published so far. These are available at the official website of the Commission:

www.aerc.nic.in.

The Cell continues with its endeavour to provide guidance and advice to consumers on

all matters related to the power sector. The Commission through the Cell assisted the

consumers in many cases by forwarding their grievances to the suppliers, requested the

suppliers for speedy response/redressal and at the same time asked for action taken

reports from the suppliers. The endeavours of the Cell have generated an atmosphere

of optimism among the participants and may go a long way in realizing the objective of

the Commission to build a partnership between all stakeholders of the power sector.

The Commission shall continue with its endeavours of creating awareness among the

consumers on power sector related matters.

For creating awareness among the consumers, the Commission, vide letter No. AERC

123/2005/Pt I/358 dated 04/02/2011 had directed APDCL to incorporate some

additional vital information on the reverse of the electricity bills to be served to the

consumers. This information in the electricity bills would benefit the consumers in

redressal of their grievances. The direction was complied with by APDCL. The

Commission in its Tariff Order for 2010-13, also directed APDCL to take immediate

measures for creating consumer awareness through the print/electronic media,

organise meetings with consumers at different levels. etc.

10. FUNCTIONING OF THE CGRFs & OMBUDSMAN

As per AERC (Guidelines for Redressal of Consumer Grievances), 2004, the Assam

Power Distribution Company Limited (APDCL) has constituted four Consumer

Grievance Redressal Forums (CGRF) for effective redressal of consumer grievances

in different parts of the state. These are:

1. CGRF, North Assam in Tezpur: To cover Sonitpur, Nowgaon, Karbi Anglong

and Morigaon districts.


Page 14

2. CGRF, Upper Assam in Jorhat: To cover Jorhat, Sibsagar, Golaghat,

Lakhimpur, Dibrugarh, Tinsukia and Dhemaji districts.

3. CGRF, Hills and Barak valley in Silchar: To cover Cachar, Karimganj,

Hailakandi, North Cachar (Dima Haula) districts.

4. CGRF, Lower Assam in Guwahati: to cover Kamrup Metro, Kamrup Rural,

Darang, Udalguri, Nalbari, Barpeta, Bongaigaon, Kokrajhar, Dhubri,

Goalpara, Chirang and Baska districts.

The AERC Guidelines for Redressal of Consumer Grievances, 2004, details the

constitution and functions of the Forum and the role of the distribution licensee in

ensuring efficient functioning of the Forum. Some of these are discussed below:

(1) The Forum shall consist of three members to be appointed by the

Distribution Licensee with the following composition.

a) A serving officer of the Distribution Licensee or a retired person to be designated by

the Distribution Licensee possessing degree in electrical engineering and having at

least fifteen years experience in the distribution of electricity and having served not

below the rank of Superintending Engineer, who will be the Chairman of the Forum.

b) One shall be a serving or a retired person having at least ten years of experience in

accounts out of which at least five years in revenue matters and not below the rank of

Deputy Manager (Accounts).

c) One shall be a representative of a Consumer Association / Non-Governmental

Organisation actively engaged in protecting the interests of electricity consumers, or a

representative from the members of the State Advisory Committee constituted under

section 87 of the Act, to be nominated by the distribution licensee.

(2) The Commission may direct the Distribution Licensee to substitute a member of the

Forum with another person as per the composition and qualification provided in sub-

clause (1) above if in the opinion of the Commission such substitution is necessary for the

proper discharge of the functions of the forum and redressal of the grievances of the

Consumers.

(3) Every member of the Forum shall hold office for a term of two years with a

provision for extension of term by one more year, but shall not be eligible for

reappointment at any time after the expiry of his term of appointment provided that no

person shall be appointed as member after he attains the age of 62 years.

(4) The Forum shall receive the complaints forwarded or filed with the Forum so long

such complaint is in writing and the Forum shall not insist or prescribe any format for

filing of the complaint or for entertaining them. The Forum may, however, seek

information and details from the complainant.


Page 15

(5) The Forum shall decide the Complaint expeditiously and shall communicate its

decision to the Complainant within a period not exceeding 30 days of the receipt of the

Complaint by the Forum. The Forum shall give the reasons in support of its decisions.

FUNCTIONING OF THE OMBUDSMAN

In exercise of powers under Sub-section 6 of Section 42 of the Electricity Act, 2003,

the Commission appointed Smti. Neelima Dewri Dutta, ACS(Retd), Former Joint

Secretary to the Government of Assam, as Electricity Ombudsman on 19th

November, 2009 for a period of two years. The tenure was extended by another two

years as per Section 4(1) of the AERC (Electricity Ombudsman) Regulations, 2004.

As per reports available with the Commission, the Ombudsman received one case of

consumer grievances during the FY 2011-12, and the case was disposed of.

11. REGULATIONS NOTIFIED DURING THE YEAR

The following Regulations were drafted by the Commission during the FY 2011-12 and

discussed in the Advisory Committee Meeting held on 17.02.2012.

(a) Draft AERC (Demand Side Management) Regulations, 2011.

Demand Side Management (DSM) is described as the planning, implementation and

monitoring of utilities’ activities designed to encourage customers to amend their

electricity consumption patterns, both with respect to timing and level of electricity

demand so as to utilise electricity more efficiently. DSM can complement supply side

strategies to help meet electric service demands by assisting the utilities to avoid or

delay costly capacity additions by slowing demand growth.

It is seen that the demand supply gap has been increasing over the last few years as

demand for electricity has out grown supply. With a view to reducing demand in the

peak hours, the draft Assam Electricity Regulatory Commission (Demand Side

Management) Regulations, 2011 were framed.

The draft regulations provide for various activities including load research and

development of baseline data, formulation of DSM plan, Commission’s review and

approval of DSM plan, preparation and approval of DSM Programme Document and

implementation of DSM programmes. The distribution licensee is required to constitute

a DSM Cell with a dedicated team of officials for planning and implementing DSM

programmes. The Commission has already directed the licensee in this regard and it

was reported by the licensee that action has been initiated.


Page 16

(b) Draft AERC (Furnishing of Technical Details by Generating Companies) Regulations, 2012.

As per section 10(3a) of the Electricity Act, 2003, every generating company shall submit

technical details regarding its generating stations to the appropriate Commission and

Authority. In line with this, CERC has notified Regulations vide No. L-7/138/153/2008-

CERC dated 14th October, 2009 namely, CERC (Furnishing of Technical Details by

Generating Companies) Regulations, 2009.

Accordingly, Assam Electricity Regulatory Commission in line with the above

procedure made the AERC (Furnishing of Technical Details by Generating Companies)

Regulations, 2012 for necessary follow up by Thermal and Hydro generators of Power

in the State of Assam. The Renewable Sources of Energy, namely Bio Mass, Biogas,

Bagasse based Co-generation, Small Hydro, Solar PV, Solar Thermal Power Stations

have also been covered under the said provisions.

(c) Draft AERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2012;

According to Section 61 (h) of the Electricity Act 2003, the Commission shall specify the

terms and conditions for determination of tariff for promotion of co-generation and

generation of electricity from renewable sources of energy. In line with this, the Central

Electricity Regulatory Commission (CERC) has notified Regulations vide No. L-

7/186/(201)/2009- CERC dated 16th September, 2009 namely- CERC (Terms and

Conditions for Tariff Determination from Renewable Energy Sources) Regulations 2009.

Accordingly, with the same objectives, AERC made these Regulations for determination

of tariff from Renewable Energy Sources.

(d) Draft AERC (Compliance Audit) Regulations, 2012.

The Forum of Regulators has prescribed Regulations on Compliance Audit of

Regulated Entities for verifying their compliance with the Electricity Act, 2003 and

Regulations made there under. Accordingly, these Regulations were framed. As per

these Regulations, the Commission may, at any time, conduct audit of Regulated

Entity for verifying their compliance with the Act, Rules, Regulations made

thereunder, orders and directions issued by the Commission.

(e) Draft Amendment of the AERC (Electricity Ombudsman) Regulations, 2011

Consequent upon the revised payscale declared by Government of Assam for State

Government employees on the 4th February, 2010 and 6th Pay Commission report of

Government of India, there has been upward revision in salaries of the officers and State

Government/State autonomous bodies and Central Government departments/

Government of India Undertaking and Enterprises. As the post of Ombudsman is held

by a senior retired officer from Government of Assam/State Autonomous Bodies/State


Page 17

Government utilities or Government of India/Central Government utilities, therefore,

necessary revision was required to be made for the Electricity Ombudsman. It was

proposed the consolidated remuneration be enhanced from existing Rs.25,000/- (Rupees

twenty five thousand) only per month to Rs.45,000/- (Rupees forty five thousand) only

per month.

Accordingly, it was proposed to substitute the existing regulation 6(1) of the AERC

(Electricity Ombudsman) Regulations, 2004 by a new clause as mentioned below:

“The Ombudsman shall be allowed a consolidated remuneration of Rs.45,000/- per

month. Any pension to which Ombudsman is entitled from the Central Government or

a State Government or any other organization/institution, shall be deducted from the

remuneration.”

(f) Draft Amendment to the AERC (Fuel and Power Purchase Price Adjustment Formula) Regulations, 2010.

The Commission made amendment to Regulation 5.15 of the Assam Electricity

Regulatory Commission (Fuel and Power Purchase Price Adjustment Formula)

Regulations, 2010, namely:-

The sentence, “The amount of fees shall be zero point zero five percent (0.05%) of the

claimed amount” should be read as “The amount of fees shall be zero point one percent

(0.1%) of the claimed amount”.

The above six draft regulations were placed in the official website of the Commission for

a period of 21 (twenty one) days and were also notified in widely circulated local

newspapers as previous publication under sub-section (3) of Section 181 of the

Electricity Act, 2003 for comments / objection, suggestion from any person who is likely

to be affected by the provision of these Regulations. Comments were received from the

All India Manufacturer’s Organization, Assam State Chapter, Tinsukia, and the Assam

Power Distribution Company Limited (APDCL) on these Regulations. Their

comments/suggestions were placed for appraisal of the members and discussion. Once

finalized, these Regulations were sent for publication in the Assam Gazette.


Page 18

12. MULTI YEAR TARIFF (MYT) PETITIONS FOR 2010-11, 2011-12

& 2012-13 BY APGCL, AEGCL & APDCL.

B. MYT PETITION OF APGCL: The Assam Power Generation Corporation

Limited (APGCL) filed petition for approval of the Annual Revenue Requirement

(hereinafter called as ‘ARR’) for the period FY 2010-11 to FY 2012-13 and

determination of Generation Tariff for the period for FY 2010-11 on 10/02/2010

under Section 62 of the Electricity Act, 2003.

Summary of the petition filed by APGCL for FY 2011-12 is given in Table 1.1.

Table 1.1 : Annual Revenue Requirement (ARR) of APGCL

(Rs. Crore)

Particular FY 2011-12

Gross Generation (MU) 2030.31

Auxiliary Power Consumption (MU) 116.74

Net Generation (MU) 1913.56

Fixed Charges

Operation & Maintenance

Employee Cost 73.28

Repairs & Maintenance 25.19

Administrative & General expenses 4.22

Interest & Finance Charges 68.99

Taxes on income 12.50

Depreciation 46.76

Provision for Bad & Doubtful Debts -

Return on Equity 56.58

Less: Other Income (-) 5.19

Total Fixed Charges (A) 282.33

Fuel Cost (B) 249.11

ARR (A) + (B) 531.44

Fixed cost - Paise/kwh (sent out) 147.54

Fuel cost - Paise/kwh (sent out) 130.18

Tariff - Paise/kwh (sent out) 277.72


Page 19

Salient features of tariff petition for FY 2011-12 is given in Table-1.2

Table 1.2 : Salient Features of tariff petition

S.No Particulars 2011-12

1 Anticipated Gross Generation (MU) 2030.31

2 Anticipated Net Generation (MU) 1913.56

3 Annual Fixed cost (Rs crores) 282.33

4 Annual variable Cost (Rs crores) 249.11

5 Average tariff (Rs/kwh) 2.78

C. MYT PETITION OF AEGCL: The Assam Electricity Grid Corporation

Limited (AEGCL) filed petition for approval of the Annual Revenue Requirement

(hereinafter called as ‘ARR’) for the period FY 2010-11 to FY 2012-13, True up for the

period FY 2007-08 & FY 2008-09 and determination of Transmission Tariffs for

AEGCL for the period for FY 2010-11 on 15/02/2010 under Section 62 of the

Electricity Act, 2003.

AEGCL projected ARR of Rs. 52361 lakhs for the year 2011-12 as detailed in Table

2.1 below:

Table 2.1: Annual Revenue Requirements of AEGCL for FY 2010-11

i) Transmission (Rs. lakhs)

Sl. No.

Particulars 2011-12

Proposed

1 PGCIL Charges 13424

2 Operation & Maintenance Expenses 11141

2.1 Employee Cost 8544

2.2 Repair & Maintenance 2156

2.3 Administrative & General Expenses 441

3 Depreciation 5696

4 Interest and Finance Charge 7189

5 Interest on Working Capital 1114

6 Other Debits 28

7 BST for Pension Trust Fund 11982

8 Provision for Bad Debt 0

9 Net prior period expenses 0


Page 20

Sl. No.

Particulars 2011-12

Proposed

10 Other expenses Capitalised 0

11 Sub total (1+2+(3to 10) 50574

12 Return on Equity 2729

13 Provision for tax/ tax paid 0

14 Total Expenditure (11 to 13) 53303

15 Less Non Tariff Income 942

16 Annual Revenue Requirements (14-15) 52361

17 True Up for FY 2007-08 & FY 2008-09

18 Net Annual Revenue Requirement 52361

ii) Annual Revenue Requirement (ARR) of SLDC

(Rs. Lakh)

Sl. No.

Particulars FY 2011-12

1 Repairs and Maintenance 106

2 Employees Costs 79

3 Administration and General Expenses 7

Total Expenditure 192

Total ARR 192

Salient features of AEGCL and SLDC petitions for FY 2011-12 are as follows:

Sl. No.

Particulars FY 2011-12

1 Net Annual Revenue Requirement (Rs. Lakh) 52361

2 Anticipated Transmission (MU) 5521

3 Transmission Loss (%) 4.25%

4 Average Transmission Charge (Rs./Unit) 0.95

5 Transmission charge for long-term Open Access consumer (Rs./kW/month) 312.79

6 Transmission charge for short-term Open Access consumer (Rs./MW/month) 10283

7 SLDC charge Rs./MW/day 37.70


Page 21

D. MYT PETITION OF APDCL: The Assam Power Distribution Company Limited

(APDCL) filed petition for approval of the Annual Revenue Requirement (ARR) for the

period FY 2010-11 to FY 2012-13, True up for the period FY 2007-08 & FY 2008-09 and

determination of tariff for the FY 2010-11 on 01/02/2010 under Section 62 of the Electricity

Act, 2003.

Summary of the petition filed by APDCL for FY 2011-12 is given in Table 3.1.

Table 3.1 : Annual Revenue Requirement (ARR) of APDCL

(Rs. in lakh)

S.No Particulars 2011-12

Proposed

1 Cost of Power Purchase 196955

2 Operation & Maintenance Expenses 58397

2.1 Employee Cost 53605

2.2 Repair & Maintenance 2961

2.3 Administrative & General Expenses 1831

3 Depreciation 6665

4 Interest and Finance Charge 5018

5 Interest on Working Capital 5950

6 Other Debits 0

7 Interest on Consumer security deposit 1629

8 Provision for Bad Debt 1920

9 Net prior period expenses 0

10 Other expenses Capitalized 0

11 Sub total (1+2+(3to10) 276533

12 Return on Equity 3675

13 Provision for tax/tax paid

Income Tax 11.33% on ROE

FBT 0.5% on Employee’s Cost

685

416

268

14 Total Expenditure (11 to 13) 280894

15 Less Non Tariff Income 21486

16 Annual Revenue Requirement (14-15)

259407

17 Revenue with approved Tariff 192700

18 Other Income (Consumer Related) 12548

19 Total Revenue Before Subsidy (17+18) 205248

20 Agriculture Subsidy 0

21 Other Subsidy 0

22 Total Revenue after subsidy 205248

23 Gap (-) / Surplus (+) -54160


Page 22

Salient features of tariff petition for FY 2011-12 is given in Table-3.2

Table 3.2 : Salient Features of tariff petition

(Rs. lakhs)

S.No 2011-12

1 Estimated Revenue from Sale of energy to retail consumers at existing tariff

192700

2 Estimated Non Tariff Income 21485

3 Other Consumer Related Miscellaneous Income

12548

4 Total Earning 22673

5 Estimated ARR 280894

6 Revenue Gap 54161

7 Truing up for FY 2007-08 & 2008-09 -

13. PROCESS FOR ARR & TARIFF DETERMINATION

The Commission on preliminary scrutiny found that the above petitions filed by APGCL,

AEGCL and APDCL were incomplete in some material particulars. Therefore, additional

data and clarifications on the petitions were sought from the utilities from time to time and

replies received. Although, additional information and clarifications continued to be

submitted, the Commission in larger interest of the consumers as well as licensees and

abiding by the statutory obligation of tariff determination admitted the petitions on

21/08/2010.

After the petitions were admitted, in accordance with Section 64 of the Electricity Act 2003,

the Commission directed the utilities to publish a summary of the ARR and Tariff filings in

local dailies to ensure public participation. Copy of the petitions was also made available

in website of Commission and the utilities.

Accordingly, Public Notices were issued by the utilities inviting objections / suggestions

from stakeholders. The Commission received a number of objection petitions and a public

hearing was held at the Assam Administrative Staff College, Guwahati on 08/12/2010 and

on 13/12/2010 at Circuit House, K.B. Road, Jorhat.

The Commission, in exercise of its powers vested under Section 61 and 62 of the Electricity

Act, 2003 and all other powers enabling on its behalf and taking into consideration the

submissions made by the petitioners, objections and suggestions received from

stakeholders and all other relevant materials on record, determined the ARR for APGCL,

AEGCL and APDCL for 2011-13, carried out True up for FY 2007-08 & FY 2008-09 and


Page 23

Tariff for 01/04/2010 to 31/03/2011 and issued order accordingly making the new tariff

effective from 24.05.2011. The tariff determined for 2010-11, was also applicable for

FY 2011-12.

14. ARR FOR FY 2011-12 APPROVED BY THE COMMISSION

A. ARR for APGCL for FY 2011-12.

Sl.

No.

Particulars

Projected by APGCL Approved by the Commission

2011-12 2011-12

1 Gross Generation (MU) 2030.31 1852.75

2 Aux. Power Consumption (MU)

116.74 76.8

3 Net Generation (MU) 1913.57 1775.95

Fixed Charges

Operation & Maintenance

1 Employee Cost 73.28 64.38

2 Repairs & Maintenance 25.19 12.78

3 Administrative & General Expenses

4.22 2.92

4 Interest & Finance Charge 68.99 49.97

5 Interest on Working Capital* 10.89

6 Taxes on income 12.50 5.54

7 Depreciation 46.76 23.93

8 Provision for Bad & Doubtful Debts

0.00 0.00

9 Return on Equity 56.58 37.99

10 Less: Other Income -5.19 -5.19

(A) Total Fixed Charges 282.33 203.21

(B) Fuel Cost 249.11 168.57

ARR (A) + (B) 531.44 371.78

1 Fixed cost in Rs / Kwh (sent out)

1.48 1.14

2 Fuel Cost in Rs / Kwh (sent out)

1.30 0.95

Tariff Rs / Kwh (sent out) 2.78 2.09


Page 24

B. ARR for AEGCL for FY 2011-12.

The Commission examined the estimates and projections of each ARR element submitted

by the AEGCL and made assessment of required levels based on the principles issued in

the Regulations. The table of ARR elements as filed by the petitioner and approved figures

by the Commission are given in Table below.

(Rs. Crore)

S.No Particulars

FY 2011-12

Filed Approved

1 Employee Cost 85.44 75.18

2 R&M Expenses 21.56 9.56

3 Administrative Expenses 4.41 4.25

4 Interest on Term Loans 71.89 54.23

5 Interest on Working Capital 11.14 9.58


7 Other Debits 0.28 -

8 SLDC charges 1.92 1.92

9 PGCIL charges 134.24 134.24

10 BST (Pension) 119.82 82.14


12 Provision for Tax 0 2.79

Total Expenditure 534.95 411.14

13 Less: Non-Tariff income 9.42 20

ARR 525.53 391.14

14 Add: Gap for 07-08, 08-09

Net ARR 525.53 391.14

15 Energy handled (MU) 5766 5474

16 Per unit charges (Rs.) 0.71

SLDC CHARGES

The Commission approved SLDC charges at Rs. 1.92 crore for FY 2011-12

C. ARR for APDCL for FY 2011-12.

Annual Revenue Requirement For FY 2011-12 based on the expenses discussed above,

estimating the other income, the revenue from sale of energy the total revenue

gap/surplus during the MYT period FY 2010-11 to 2012-13 is arrived as given below:


Page 25

S.No ARR Element

FY 2011-12

Filed Approved

A Power Purchase (MU) 6359 6211

B Sales (MU) 4357 4161

C Distribution Losses (%) 21.07 20.60

1 Cost of Power Purchase 1969.55 1711.68

2 Employees Cost 536.05 501.87

3 R&M Expenses 29.61 29.13

4

Administration & General

Expenses 18.31 15.02


6 Interest & Finance Charges 50.18 10.25

7 Interest on working capital 59.50 43.81

8 Interest on CSD 16.29 13.67

9 Provision Bad Debts 19.20 -


11 Provision for Taxes 4.16 4.54

12 FBT 0.5% on Empl cost 2.68 -

ARR 2808.94 2381.96

13 Non Tariff Income 214.86 312.40

14 Other Income 125.48 125.48

Net ARR (A) 2468.60 1944.08

15 Revenue at Existing tariff (B) 1927.00 1899.35

16 Revenue (Gap) /Surplus (B)-(A) -541.60 -44.73

17

True-up for FY 2007-08

(Gap)/Surplus

18

True-up for FY 2008-09

(Gap)/Surplus

19 Total (Gap) / Surplus -541.60 -44.73

20

Average cost of supply

(Rs/KWh) 5.66 4.67

The Commission has not contemplated any change in the existing tariff structure. The

Commission has however considered marginal increase in the tariffs of various categories

of consumers as given below:

Sl. No. Consumer Category Fixed Charges Increase in energy charges

1 LT Category-1 Jeevan Dhara No change 15 paise per unit

2 For all other categories No change 25 paise per unit


Page 26

15. TARIFF SCHEDULE

The Approved Tariffs for 2010-11 was applicable for FY 2011-12 and the tariff schedule is given

below:

Tariff

Category Type of installation Tariff Applicable for FY 2011-12

Fixed Charges Energy Charges

LT I

Jeevan Dhara / LT

Domestic A

Rs 15 per

connection/mth Rs 2.50 /KWh

LT II Domestic A

0-120 KWh Rs 30 per KW/mth Rs 3.25 /KWh

120-240 KWh Rs 30 per KW/mth Rs 4.30 /KWh

Balance Units Rs 30 per KW/mth Rs 5.00 /KWh

LT III Domestic B Rs 30 per KW/mth Rs 4.60 /KWh

LT IV Commercial Rs 110 per KW/mth Rs 5.00 /KWh

LT V General Purpose Supply Rs 125 per KW/mth Rs 4.45 /KWh

LT VI Public Lighting Rs 120 per KW/mth Rs 4.70 /KWh

LT VII Agriculture Rs 30 per KW/mth Rs 2.75 /KWh

LT VIII(i) Rural Industries Rs 30 per KW/mth Rs 2.80/KWh

LT VIII(ii) Urban Industries Rs 40 per KW/mth Rs 3.05 /KWh

LT IX Temporary Supply

Domestic

Rs 80 per KW per day or Rs. 6.25 per unit,

whichever is higher

Agriculture

Rs 50 per KW per day or Rs. 4.25 per unit,

whichever is higher

Other -Non Domestic &

Non Irrigation

Rs 125 per KW per day or Rs.8.25 per

unit, whichever is higher

HT I HT Domestic Rs 30 per KVA/mth Rs 4.40 /KWh

HT II HT Commercial Rs 115 per KVA/mth Rs 4.70 /KWh

HT III Public Water Works Rs 125 per KVA/mth Rs 4.55 /KWh

HT IV(i) Bulk Supply - Educational Rs 110 per KVA/mth Rs 4.25 /KWh

HT IV(ii) Bulk Supply - Others Rs 145 per KVA/mth Rs 4.55 /KWh

HT V HT Small Industries Rs 40 per KVA/mth Rs 3.25 /KWh

HT V(B) HT-I Industries Rs 100 per KVA/mth Rs 4.00 /KWh

HT V (C) HT-II Industries

Option-1 Rs 140 per KVA/mth Rs 4.10 /KWh

Option-2 Rs 270 per KVA/mth Rs 3.40 /KWh

HT VI Tea, Coffee and Rubber Rs 230 per KVA/mth Rs 4.45 /KWh

HT VII Oil and Coal Rs 270 per KVA/mth Rs 4.50 /KWh

HT VIII HT Irrigation Rs 40 per KVA/mth Rs 3.70 /KWh


Page 27

16. Important Directives to APDCL in Tariff Order for FY 2010-13 for

better quality of power supply to consumers.

i. Pilferage of Energy

The need of the hour is to activate the organization to curb the pilferage of power within

the premises of provisions of Indian Electricity Act 2003 and also the Indian Penal Code.

APDCL was directed to constitute a task force for different zones to which the entire

distribution licensee area is to be divided to carry out massive raid to arrest pilferage.

ii. Energy Audit and Demand Side Management

Energy audit is an important and essential tool to identify the high loss (technical and

commercial) areas in the system. For carrying out the energy audit, the Commission

directed that meters be provided at all the feeders from 220KV to 11KV level and also

distribution transformers on LT side. The Commission further directed APDCL that energy

audit should be taken up first in all the towns with a population of fifty thousand and

above.

One of the effective methods to minimize the demand-supply gap is by expediting

Demand Side Management (DSM) activities. The Commission directed APDCL to

constitute a DSM Cell for carrying out load research, formulation of DSM Plans, design,

development and implementation of DSM activities etc.

iii. Improvement in quality of service

APDCL is directed to take appropriate steps to improve quality of service, especially

quality of supply to its consumers. The quality of power being supplied to consumers,

especially in the rural areas need substantial improvement. Adequate steps need to be

taken so that reliable, uninterrupted and quality power is made available to the consumers.

iv. Prepaid Meters

Prepaid meters eliminates cost of meter reading, bill serving, disconnection / reconnection

and avoids wrong readings, delay in bill serving etc. Since the payment is upfront it

improves the cash flow of the Discom. APDCL may procure some prepaid meters initially

after ensuring service facilities and provide to some domestic consumers as a pilot study to

encourage and make the consumers to observe the advantages of having prepaid meters


Page 28

facility. Subsequently APDCL may suggest the consumers to purchase the prepaid meters

at their own cost by offering some rebate say about 10% in energy charges.

v. Spot Billing

To avoid errors in meter reading / recording delay in bill serving action may be taken to

read/record the meter reading and bill serving for the LT consumers on the spot with

handheld computers. Handheld computers prices have come down considerably and

many utilities are successfully implementing this procedures.

APDCL shall initiate action in this regard and the progress in this matter may be shared

with the Commission.

vi. Independent third party meter testing arrangement

The National Electricity Policy (NEP) emphasizes the need for establishment of an

independent third party meter testing arrangement. It is noted that the Licensee has not

been establishing reliable Independent Testing Laboratories.

The Licensee shall establish more number of testing laboratories in each circle to test more

number of meters either new or defective. Setting up of a meter testing lab may not cost

much but the persons have to be trained in testing. The progress on upgrading the existing

labs and setting up of new labs may be reported to the Commission quarterly.

vii. Efficient meter reading billing and collection

Timely meter reading, billing and collection for energy consumed by the consumers can

significantly improve the cash flow of the Licensee. The present system should be

examined with a view to streamline the process and minimize the time between actual

delivery of power and receipt of revenue. Supervisory officers must counter check the

meter readings taken by the meter readers. Further, the area of meter readers should be

changed every year. Although MRI billing is in place for some of the consumers, the

Licensee now shall conduct billing through Meter Reading Instrument (MRI) for all HT

consumers and large non-domestic consumers. Spot billing preferably by palm top

computers may be introduced in the urban areas.

viii. Meter Reading of HT services

The monthly meter reading of HT services shall be entrusted to a committee of high level


Page 29

officers of the APDCL. All the HT services below 500KVA contracted maximum demand,

meter reading may be done by the concerned Assistant Manager and those above 500KVA

by the concerned Senior Manager / Manager / Deputy Manager. Further, certain

percentage of meter readings in each category of consumers shall be done by senior officers

of the APDCL upto the level of GM / DGM to control pilferage of electricity. APDCL shall

issue suitable instructions in this regard immediately and the Licensee shall also review the

percentage of check readings and take action in case of variation between normal meter

reading read by meter reader and the check meter reading taken by the officers of the

APDCL.

ix. Energy conservation

A well-known proverb is that energy conserved is energy generated and to conserve

energy, the consumers are required to be well educated by way of demonstrations, holding

meetings at various levels and through print media so that energy consumption can be

reduced considerably by adopting economy measures such as use of energy efficiency

lighting, high efficiency and standard make household appliances, high efficiency

pumpsets preferably with labels of Bureau of Energy Efficiency (BEE) and other energy

conservation devices. All categories of consumers should be well apprised of the newly

developed latest energy conservation devices so that the energy conserved can be utilized

for more productive purposes and in consonance with direction issued by the Ministry of

Power, Government of India.

x. Metering System in All Government Departments and autonomous Bodies.

It is has been ascertained that due to accumulated outstanding dues of various

Government departments, Autonomous bodies and Municipal bodies the burden of

arrears dues has adversely affected the licensee on the Distribution business as well as

financial growth of the utility. In view of the above it has become incumbent on the part of

Distribution Licensee to switch over to the prepaid Autonomous bodies. The prepaid

meters of different locations would be identified and installed by the Distribution

Companies and the cost of which would be borne by the Government departments. The

APDCL is therefore directed to act accordingly and to take all necessary steps in

implementing prepaid metering system.

17. Important Achievements of AERC for FY 2011-12

1. Regulations notified: The following Regulations were drafted by the Commission during


Page 30

the FY 2011-12, notified as previous publications and discussed in the Advisory Committee

Meeting held on 17.02.2012.

(g) Draft AERC (Demand Side Management) Regulations, 2011;

(h) Draft AERC (Furnishing of Technical Details by Generating Companies) Regulations, 2012;

(i) Draft AERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2012;

(j) Draft AERC (Compliance Audit) Regulations, 2012;

(k) Draft Amendment of the AERC (Electricity Ombudsman) Regulations, 2011 and

(l) Draft Amendment to the AERC (Fuel and Power Purchase Price Adjustment Formula) Regulations, 2010.

2. Constitution of Monitoring Committees by the Commission

Supply of reliable and quality power of specified standard in an efficient manner and at

reasonable rates is one of the main objectives of the Commission. The AERC notified the

standards of performance of licensees with respect to quality, continuity and reliability of

service for all consumers in 2004. These regulations also detail the norms for payment of

compensation to consumers on demand in case of non-compliance of guaranteed standards

by the distribution licensee. Similarly, in the Tariff Orders issued by the Commission,

directives were issued to the Generation Company and transmission and distribution

licensees for increasing efficiency; encourage economical use of resources, timely

completion of ongoing projects etc. Making these different segments of the power industry

efficient and solvent is the key to success of power sector reforms and better service to

consumers.

In view of the above, the Commission proposed to constitute three different Committees

incorporating members from the concerned utility, State Government, State Advisory

Committee (SAC) and Consumer Groups to monitor the improvement of quality of power

supply and standard of performance of APDCL (distribution); review the performance of

APGCL (generation); and review of performance of AEGCL(transmission). The proposal

was duly approved by members of the Advisory Committee on 17.02.2012 and the

monitoring committees for generation, transmission and distribution companies were

constituted.


Page 31

3. MYT Tariff Orders issued for FY 2010-13 of the Commission dated 16.05.2011 in respect

of APGCL, AEGCL and APDCL against their petitions for FY 2010-11, 2011-12 and 2012-

13.

Multi Year Tariff orders were issued on 16th May, 2011 for generation, transmission and

distribution utilities for the FY 2010-11 and ARR were determined for FY 2011-12 and 2012-

13. The Commission issued a number of important directives in these orders for

compliance by the utilities within specified time frames.

4. Tariff Order of the Commission in respect of M/s EIPL (DLF) for FY 2008-09.

The Commission issued Tariff Order on 20th October, 2011 for Adamtilla (9 MW) &

Banskandi (15.5 MW) Power plants of M/s EIPL at Barak Valley for FY 2008-09.

18. FINANCE AND ACCOUNTS

During the FY 2011-12, the Government of Assam provided a grant of

Rs. 1,27,66,000/- (Rupees One Crore Twenty Seven Lakh Sixty Six Thousand) only

from the budget for meeting the expenses in connection with the functioning of the

Commission. The Commission also received Rs. 56,34,833/- (Rupees Fifty Six Lakh

Thirty Four Thousand Eight Hundred Thirty Three) only as fee for filing tariff

petition from ASEB and its three successor entities. The accounts of the Commission

were duly audited. Audit was done by M/s Rakesh Bajrang & Co., CA firm.

BUDGET PROVISION FOR THE FY 2011-12 : The budget proposed for F.Y.

2011-12 was Rs. 1,93,33,930 (Rupees One Crore Ninety Three Lakh Thirty Three

Thousand Nine Hundred Thirty) only, the amount approved by the Government

was Rs. 1,27,66,000 (Rupees One Crore Twenty Seven Lakh Sixty Six Thousand) only,

and the approved amount was released during the year.

Figures in Rupees

Year Budget Proposed Budget Approved Budget Released

2011-12 Rs. 1,93,33,930 Rs. 1,27,66,000 Rs. 1,27,66,000


Page 32

19. CONCLUSIONS

During the FY 2011-12, the Commission received adequate financial and

administrative support from the State Government facilitating proper discharge of its

various functions and responsibilities. It is hoped that this support will continue

during the ensuing year and the Commission would be in a position to consolidate

the work done so far and stride further in the electricity regulatory and reform

process in the State. The Commission solicits unstinted cooperation of the

Government of Assam, the Assam State Electricity Board and successor entities, other

licensees and stakeholders including the general public, in achieving the mission of

the Commission.

------------------------------------------


Page 33

Annexure — I

Audited Financial Statements

For

2011-12


Page 0


Page 1


Page 2


Page 3


Page 4


Page 5


Page 6


Page 7

assam electricity regulatory commission annual report … · assam electricity regulatory...

Documents