bescom - chapter - 6

Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - BESCOM

Chapter – 6 – Review of Compliance of Directives issued by 35 the Commission

CHAPTER - 6

REVIEW OF COMPLIANCE OF DIRECTIVES ISSUED BY THE COMMISSION

The commission had in the earlier tariff orders and in various letters issued the following directives for compliance by BESCOM. Compliance of those directives by BESCOM is discussed in this section.

6.1 Directive on Demand Side Management and Energy Efficiency Measures

BESCOM is directed to explore the possibility of introducing the following DSM and Energy Efficiency measures, which would result in reduction in energy consumption and reduction of peak loads/demand.

(a) Making “Time of Day Tariff” compulsory for industrial consumers, which is optional now.

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

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

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

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

BESCOM is directed to formulate a time bound action plan to implement the above Demand Side Management and Energy Efficiency Measures and submit the same to the Commission within three months from the date of this order.

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Chapter – 6 – Review of Compliance of Directives issued by Page 135 the Commission

Compliance by BESCOM

(a) Making ‘Time of Day Tariff’ compulsory for industrial consumers, which is optional now.

The Commission vide Tariff Order dated October 28, 2011 has continued the Time of Day Tariff use as an option to consumers under LT 5 (where trivector meter is fixed) and HT2 (a) categories.

BESCOM proposes ‘Time of Day Tariff’ to be made compulsory for industrial consumers under HT category. The same is furnished under the heading’ New Proposals’ in the present filing.

(b) Installing electronic ‘timer switches’ for streetlight installations for switching ‘on’ and ‘off’ at the required timings

BESCOM is regularly pursuing with BBMP and the other local bodies through the Zonal Chief Engineers (Ele) who have been nominated as coordinators for installing Energy efficient street lighting systems and installing electronic ‘timer switches’ for streetlight installations.

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

feeders

BESCOM has taken up the work of segregating agricultural loads from the existing 11kV feeders in the form of Niranthara Jyothi, a scheme to provide 24X7 uninterrupted power supply to non-agricultural loads in Rural areas in two phases. The updated progress is being regularly submitted to the Hon’ble Commission. Details are enumerated under compliance for Directive 3, Taluk wise segregation of feeders.

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

The compliance is furnished under the new directive ’ implementation of HVDS’

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

Progress as on31.01.2012 is furnished below:

SL.NO Division

H/H Distribut

ed11Watt 18 Watt Total CFLs

Remarks (Completed

)1 KOLAR 144356 76125 428858 504983 30.06.20112 KGF 152429 79510 490527 570037 30.06.20113 CB PURA 134228 55031 462756 517787 30.08.2011 KOLAR CIRCLE 431013 210666 1382141 1592807

1 RAM NAGAR 138665 102150 444211 546361 19.08.20112 YELAHANKA 133910 52225 470025 522250 26.08.20113 CHANDAPURA 133016 52925 469825 522750 31.08.20114 NELAMANGALA 134154 51520 465680 517200 31.08.2011Bangalore Rural

CIRCLE 539745 258820 1849741 2108561

Total 970758 469486 3231882 3701368

Note:

Tumkur and Davanagere Circle - Tender has been re-floated and is under evaluation.

BMAZ - Letter of Award on M/s Energy Efficiency Services New Delhi has been issued, Tripartite agreement is signed for Bangalore South Circle and distribution of CFL bulbs for about 10 Lakh House-Holds will commence shortly.

Commission’s views

BESCOM is directed to formulate a time bound action plan within three months to implement the above Demand Side Management and Energy Efficiency Measures immediately. The progress achieved in regard to bifurcation of IP loads and Installing electronic “timer switches” for streetlight installations is not upto the expected level. The progress achieved in implementing the directives shall be reported to the commission on a quarterly basis.

Also, the Commission in its tariff order dated October 28, 2011 has suggested that ESCOMs on behalf of the local bodies take action for installing timer switches to the streetlight installations and recover the cost from the local bodies to save time in avoidance of the wastage of energy. BESCOM is directed to act expeditiously on this issue.

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6.2 Directive on Implementation of Intra State ABT

The KPTCL and ESCOMs have reported that they have commenced the process of setting up Area Load Despatch Centres to implement Intra State ABT as earlier directed. The Commission hereby directs that the work of establishing ALDCs in all the ESCOMs shall be completed fully and Intra State ABT is made operational by 31st

August, 2010. Thereafter, progress achieved in this regard shall be reported to the Commission on fortnightly basis.


The Company has put in place full fledged Distribution Control Centre. The SLDC can implement Intra State ABT provided KPTCL completes the implementation of SCADA in all its stations. However, every day hourly availability in terms of peak load and energy at 220kV station level is being furnished by SLDC, and BESCOM in turn is allocating the hourly peak load and energy at 220kV station levels depending upon the availability.


In the Advisory committee meeting held on 30.03.2011 it was informed by MD, KPTCL that the Intra State ABT would be implemented from April 2011 and the Generators would also be included. The Commission notes that Intra State ABT is being delayed on one ground or the other. This is affecting to inter company accounting. Therefore, the Commission directs that the KPTCL and the ESCOMs shall take all necessary measures immediately to complete the remaining activities for implementation of Intra State ABT and report compliance.

6.3 Directive on Taluk-wise Feeders’ Segregation

ESCOMs shall furnish to the Commission the programme of implementing 11 KV taluk wise feeder segregation with the following details-

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

Compliance by BESCOM:

Progress of Niranthara Jyothi works, Phase-I as on 31.01.2012

Sl No

Name of the Taluk

No. of villages covered

No. of existin

g feeder

s

No. of propose

d NJ feeders

Project cost

(Rs. in Lakhs)

Progress Achieved Feeders complete

d

Feeders commission

ed1 2 3 4 5 6 7 81 Kanakapura 483 31 22 3184.78 8 2

2 Magadi 26 1 1 140.42 1 13 Hosadurga 208 19 13 1606.12 7 34 Channagiri 147 53 18 1667.33 11 65 Harapanahalli 113 18 10 1616.06 4 26 Bagepalli 272 17 11 1588.41 6 67 Kunigal 414 23 16 2718.96 11 08 Madhugiri 259 31 18 1897.95 18 10

9 Gubbi * 458 68 26 3692.66 7 5

10 Sira 289 26 17 2423.93 7 511 Honnali 103 29 11 1194.42 7 312 Hiriyur 237 29 16 2455.56 11 513 Jagalur 106 13 9 1218.54 6 214 Siddlaghatta 268 26 14 1969.07 8 715 Hosakote 222 35 19 2469.73 18 1616 Anekal 86 8 5 1102.06 1 117 Tumkur 569 60 26 3179.20 19 1818 Tiptur 224 23 12 1877.97 10 819 Devanahalli 208 25 19 1450.45 6 1

20 Harihara * 58 20 10 705.05 0 0Total 4750 555 293 38158.67 166 101

Note:

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No. of feeders in which work is in progress is 293 - 24 = 269 Nos.

Completion Date: FY - 2011-2012 Out of 26 feeders in Gubbi taluk 14 feeders work will

be taken up in phase-2 and 10 feeders in Harihara taluk will be taken up in phase-2

Financial expenditure as at the end of January 2012 for NJY Phase-I.

Amount required

for phase-1

Mode of arrangement

Rs. 382 Crores

* Under Special Development Plan

Government Of Karnataka has released Rs. 32 Crores vide EN 95 PSR 2008,Bangalore, Dated 01.09.09

Released 22.50 Crores as investment in ESCOMs for Niranthara Jyothi works Special Development Plan vide G.O.No.: EN 20 PSR 2011/P3- Part I Bangalore Dated 21.09.2011

* Under Equity (investment in ESCOMs for Niranthara Jyothi works Karnataka released 25 Crores as

equity vide G.O.No: EN 13 PSR-2010, Bangalore: 22.12.10.

Released 63.45 Crores as equity vide G.O.No: EN13 PSR-2010, Bangalore Dated: 31.3.2011.

Released 20.00 Crores as equity vide G.O.No: EN20 PSR-2011/P3-Part II, Bangalore Dated: 21.9.11.

Cumulative Expenditure booked as on Jan-2012- Rs.272.27 Crores

Niranthara Jyothi Scheme Phase-II, Progress as at the end of January-2012

Sl No Name of the Taluk

No. of villages covered

No. of existin

g feeders

No. of propose

d NJ feeders

Estimate cost (Rs. in Lakhs) As per DPR

Remarks

1 Doddaballapura 240 26 17 1283.81DWA Issued on

10.11.2011.Survey under progress.

2 Nelamangala 235 7 7 1828.84Retendered 3 Ramanagara 20 1 1 301.97

4 Channaptna 168 21 10 2014.55

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5 Koratagere 212 17 11 1513.75 LOI Issued on 22.9.2011.

6 Turuvekere 207 22 14 2043.53Retendered 7 Gubbi (part)** 190 23 14 1867.91

8 Chikkanayakanahalli 336 30 15 2690.07

DWA Issued on 10.11.2011 for LOT-

08. Retenderd to be

invited for Chikkanayakanahalli

part-1 (Lot No.7)

9 Bangarpet 356 33 16 2229.28DWA Issued on


10 Mulbagal 233 21 12 1876.28 Retendered 11 Kolar 258 40 21 2292.5

12 Chintamani 300 33 15 2196.41DWA Issued on


13 Srinivaspura 328 33 13 2372.22Retendered 14 Chikkaballapura 156 16 11 1392.63

15 Gowribidanur 318 31 19 2303.21DWA Issued on


16 Gudibande 77 5 3 487.67

Retendered

17 Chitradurga 183 24 16 1346.2218 Holalkere 194 32 14 1761.2319 Challakere 173 26 13 1807.4920 Molakalmur 142 25 10 1480.7821 Harihara** 58 20 10 705.0522 Davanagere 129 42 18 1859.4

Total 4513 528 280 37654.8 Note : ** Harihara and Gubbi part taluks were covered under phase-1 of NJY scheme due to non-participation of the bidders same has been included in phase-2


The benefit of this scheme need no emphasis. The progress achieved in implementing the works under NJY scheme Phase-I is around 35% only. But BESCOM had stated that that it would complete all feeders under NJY Phase-I works by March 2012. This dead line is not kept up. Therefore, BESCOM is directed to hasten the pace of NJY works and furnish to the Commission the progress achieved under Phase-I along with improvements achieved in

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supply after segregation of feeders and also the time bound schedule for completion of the Phase-II works.

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

The Commission had earlier directed the ESCOMs to complete installation of meters at the DTCs by 31st December, 2010. In this regard ESCOMs were required to furnish to the Commission the following information by 30-04-2010 and thereafter report on a monthly basis on the progress achieved in respect of -

a) No. of DTCs existing in the Company.b) No. of DTCs already metered.c) No. of DTCs yet to be metered.d) Time bound monthly programme for completion of work.


It is submitted to the commission that there are about 42,808 DTCs in Urban and 1,15,854 DTCs in the Rural areas. Out of these, 28,210 DTCs in Urban area and 28,132 DTCs in Rural areas have already been metered. The tenders were invited for the balance DTCs in Rural areas amounting to Rs 4200 lakhs. The tender was dropped for technical reasons. Also under R-APDRP scheme about 15,369 DTCs are proposed for metering in Urban areas which is under execution which will be completed by FY12. Further, action will be taken to provide meters to the balance DTCs in Rural areas in a time bound manner in FY-13.


The overall progress achieved by the BESCOM is around 35% only. BESCOM shall furnish the plan of action for fixing meters to the remaining DTCs and obtaining meter readings for conducting energy audit within a specified time limit. BESCOM is also directed to take up Energy Audit of all the completed DTCs and submit compliance.

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6.5 Directive on prevention of electrical accidents

The Commission has reviewed the electrical accidents that have taken place in the State during the year 2010-11 and with regret noted that as many as 391 people and 595 animals have died due to these accidents.

From the analysis, it is seen that the major causes of these accidents are due to snapping of LT/HT lines, accidental contact with live LT/HT/EHT lines, hanging live wires around the electric poles/transformers etc., in the streets.

Having considered the above matter, the Commission hereby directs all ESCOMs/Hukkeri RECS/KPTCL to prepare an action plan to effect improvements in the Transmission and Distribution Networks and implement safety measures to prevent electrical accidents. Detailed Division wise action plan shall be submitted by BESCOM to the Commission within two months.


Action plan to effect improvements in the distribution networks is furnished as under:

Departmental:

Norms have been laid down duly stipulating safety practices to be adopted in the field at various levels in the form of Safety manual both in English and Kannada.

All the employees right from the cadre of the Chief Engineer Elecy., and down upto Line Men were trained on Safety practices. Total was about 11216 (including Mazdoors and Gangmen).

Awareness campaign materials like posters, pamphlets and experienced case studies have been got printed and supplied to the field.

A set of safety materials have been designated for procurement, for each Line Man and the Section Officer. Sufficient safety

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materials have been procured and further process of procuring the same to replace worn-out or unusable materials. Safety materials mainly include Helmet, Safety belts, Rubber hand gloves, 11 kV line detectors, etc.

A system of taking safety oath on every Monday is introduced along with 11 kV work permit which is mandatory (apart from line clear being taken from the sub-station) before taking up the work to be signed by both Lineman and the Section Officer.

Recently BESCOM has adopted safety procedures duly fixing responsibilities for each level of the field officers and the protocol to be followed before taking up the works on distribution system. This protocol also stipulates punitive actions against erring employees.

Non-Departmental:

It is true that the number of electrical accidents occurring to non-departmental persons is on higher side, may be for several reasons like ignorance, bad distribution system and carelessness.

BESCOM is releasing safety tips for the knowledge of the public through newspapers in state level as well as district level, every half year and also through various advertisements in the magazines and souvenirs. We are using electronic media for bringing awareness on Safety through TV, Radio, Electronic displays, etc.,

We have made an action plan for communication purpose in order to make the public aware of the hazards in the distribution system for which a budget of Rs. 1 Crore is earmarked and action plan developed. We are utilizing the same campaign for the purpose of bringing in awareness about the Energy Saving and the methods of redressal for the complaints. Apart from conducting regular interaction meetings at Sub-Division level, Division level and Corporate level, a committee is being formed with representatives from Janagraha for shifting electrical equipment which are hazardous in nature.

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Awareness campaign materials like posters and pamphlets have been got printed and supplied to the field.

Action has been taken to identify various hazardous locations in the distribution system starting from examination of 11 kV feeders, Distribution Transformer Centers and down upto the service point of the customers. There is a routine practice of identifying and rectifying such dangerous / hazardous installations. About 4355 works have been identified and are in progress. During the period from Sept-2011 to Dec-2011, 903 Nos of hazardous installations have been rectified.

Focus is given to identify dangerous installations in the public areas especially schools and colleges.

Safety Work Book has been designed and is being printed under the guidance of M/s PRDCL consultants. The Safety Work Book contains the procedure to be followed while carrying out any work. The safety materials to be kept in section offices for carrying out the work safely, the procedure for creating safety zone for work execution. The supervisory staff should certify the work allocation and safety material issued to staff.

Guidelines have been issued from BESCOM stipulating the procedure to be followed in identifying hazardous location and their rectification and the action to be taken on employees, if the rectification works are not completed in specified time.

A Circular regarding identifying and rectification of hazardous locations and implementations of safety rules in BESCOM is issued wherein the roles, responsibilities and disciplinary actions to be initiated for various Field Officers starting from Maintenance Staff, Meter Readers, Section Officers / Sub Divisions office and Division Office are clearly mentioned.

Advertisements in News papers have been planned highlighting the importance of Safety and also feedback from consumers / public is invited in case of non-adherence to Safety procedure by employees of BESCOM.

During this year the following Safety Materials have been procured

Sl. Particulars Total Sl. Particulars Total

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No. No.1 Helmets 1600 6 Hand Torch 37522 Helmets with Electronic

Induction tester 1265 7 Adjustable Screw Spanner 5535

3 Screw Drivers 6555 8 Telescopic Earthing Rod 13004 Cutting Pliers 5185 9 Hickory Rods 43935 11 kV Detectors 1600 10 Grounding Rods 1704

Tendering process is under process for procuring the following safety materials:

Sl.No. Particulars Total

1 Safety Belts 33412 Safety Helmets with electronic induction tester 27543 Hand Gloves 3907

Statement showing the details of Accidents for the FY 2010-11 and

FY 2011-12 (Upto 31.01.2012)

Particulars FY -2010-2011 FY -2011-2012 (upto 31.01.2012)

Fatal Dept 11 6Non Dept 93 94

Non-fatal Dept 53 30Non Dept 27 41

Animal 62 63Total No. of accidents 246 234


The Commission notes that even during 2011-12, 110 people and 43 animals have died in BESCOM due to electrical accidents. The Commission appreciates the measures taken by BESCOM for prevention of electrical accidents especially with respect to identifying and rectification of hazardous installations in the public places. But, despite these measures, it is seen from the analysis of accidents occurred in BESCOM for FY12 that fatal accidents to non-departmental persons and animals have increased compared to the previous year. This clearly calls for action plan to reduce hazardous locations in public places. BESCOM is directed to take up rectification of balance identified hazardous installations/locations

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Chapter – 6 – Review of Compliance of Directives issued by 5 the Commission

in the network expeditiously in a time bound manner and submit compliance regarding the same on a quarterly basis. BESCOM shall also educate the consumers regarding the safety precautions to be taken by them to avoid accidents through media and interaction meetings.

Further, the Commission notes that the compensation paid in case of accidents is inadequate and needs to be enhanced. Therefore the Commission directs BESCOM to take action to suitably increase the quantum of compensation under intimation to the Commission.

6.6 Directive on HT / LT Ratio

BESCOM is directed to take measures to achieve HT line : LT line ratio of 1:1 by adopting Niranthara Jyothi Yojana in Rural areas and by converting LT lines into HT lines and providing additional DTCs in Urban areas in one taluk as a pilot project. By achieving 1:1 ratio, LT line losses will be reduced. BESCOM shall furnish time bound action plan to achieve this ratio in one taluk of the Company.


In the existing Distribution network of the Company, 73,759 Ckt KM of HT line and 1,49,564 Ckt KM of LT line exists as on date, with HT/LT ratio of 2.02. Under Nirantara Jyothi Phase-I about 6,770 Ckt KM of HT line is added and under Phase-II works, another 9,000 Ckt KM of HT line will be added to the existing network. With the completion of these works HT/LT ratio will come down to 1:1.67. Under R-APDRP the reduction in HT/LT ratio is also envisaged. Further, an action plan would be drawn up to bring HT/LT ratio to 1:1 in one of the Taluks.


BESCOM is directed to achieve HT line : LT line ratio of 1:1 by converting LT lines into HT lines and providing additional DTCs in Urban and Rural areas by expediting works under RAPDRP, NJY and HVDS to reduce LT line losses. BESCOM shall hasten the pace of HVDS implementation which will substantially reduce LT lines.

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BESCOM is directed to furnish a time bound action plan to achieve this ratio in the Company.

6.7 Directive on MIS and Computerization

BESCOM shall improve its Management Information System (MIS) and provide more details and explain the basis for all the projections indicating the sources of data and the method of estimating projected values in the next filing.

Further, the Commission notes that, despite computerization, there are some inconsistencies in the data furnished to the Commission on various aspects. BESCOM has to improve its database and achieve consistency in the data furnished to the Commission.


The following actions are taken to improve Management Information System (MIS) of BESCOM:-

Corrective actions have been taken in the present billnet application software for generation of accurate and consistent reports.

Web based integrated MIS solution being implemented under RAPDRP, will source data from the relevant applications, integrate them into a common easy to use structure, and provide accurate reports.

The MBC software of RAPDRP being implemented has been structured to enable accurate computation of fixed charges and revenue realization in different slabs of consumption relating to various tariff categories.

Providing Internet connectivity by Feb.2012 for all Sub-Divisional / section offices, BESCOM enables running of web applications for accurate data collection.

Consumer Indexing – Creation of BESCOM Network database through DGPS survey covered under RAPDRP enables capturing

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accurate network data (station - feeder – DTC – pole- consumers ) and integration of the same into MBC software.

Provision has been made in the Web based MIS module of RAPDRP for providing customized MIS as per KERC directives and access will be provided to commission.


BESCOM shall furnish the above details for the purpose of more accurate computation of fixed charges and revenue realization in different slabs of consumption relating to various tariff categories. BESCOM has to improve its database and shall be consistent in the data furnished.

6.8 Directive on Energy Audit

The Commission has been directing BESCOM to prepare a metering plan for Energy Audit to measure the energy received in each of the Inter phase points and to account for the energy sales. The Commission has also directed BESCOM to conduct energy audit and chalk out an action plan to reduce distribution losses to a maximum of 15% wherever it was above this level in 15 towns and cities having a population of over 50,000.


The process of segregating technical losses and commercial losses in the study entrusted to M/s. CPRI for about 8 feeders is completed for the first quarter and a report will be submitted to the commission by 29.2.2012. Further, conducting of circle wise energy audit will be taken up.Commission’s Views

BESCOM is directed to expedite the process of segregating technical and commercial losses by completing the study assigned to M/s CPRI, and also it is directed to submit the analysis reports in respect of completed eight feeders early. BESCOM shall also furnish the voltage wise losses as sought earlier by the

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Commission. The Commission reiterates its directive to undertake energy audit studies at the distribution circle level and submit to the commission.

6.9 Directive on Assessment of IP sets’ consumption

The Commission had directed BESCOM to provide meters to DTCs predominantly feeding to IP sets at the rate of two to four DTCs per O&M section.

The Commission directs BESCOM to furnish the monthly data downloaded from 44 ETV meters that was hitherto being furnished by M/S TERI, in addition to the monthly statement of assessment of IP consumption based on DTC metered sampling points which is being furnished.

Further, the Commission notes that, the present method of computation of IP set consumption based on monthly sample readings of DTCs predominantly feeding IP sets is not reflecting an accurate picture of IP set consumption. ESCOMs shall meter all the DTCs which are feeding energy to IP set installations. This will enable the ESCOMs to accurately assess the IP set consumption and claim subsidy from the Government.

BESCOM shall install meters to all the remaining DTCs which are feeding to IP sets and put in place a mechanism to obtain periodical meter readings of such DTCs and assess the IP set consumption.

Compliance by BESCOM The monthly data downloaded from 44 ETV meters and readings of meters fixed to DTCs predominantly feeding IP sets in the prescribed formats are regularly submitted to the Commission.


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The Commission reiterates its directive to BESCOM to install meters to all the remaining DTCs which are feeding IP sets and put in place a mechanism to obtain periodical meter readings of such DTCs and assess the IP set consumption. Replacement of faulty meters/CTs if any, in the sampled DTCs shall be carried out immediately and reported to the Commission. BESCOM shall furnish a time bound action plan within three months of this Order for completing the above programme.

6.10 Directive on Quality of Service

The Commission has earlier commented on the poor quality of supply to consumers particularly in Rural areas. The Commission has been directing BESCOM to take appropriate action to reduce interruptions by attending to periodic maintenance of lines and equipment, with particular reference to Rural areas.

The Commission directs BESCOM to continue its efforts in improving the quality of supply particularly in Rural areas w0here the quality of supply is very poor.


BESCOM has opened service centers in all its Divisional head quarters especially in Rural areas with adequate men and material resources and is carrying out regular periodic maintenances in order to reduce the duration as well as frequency of interruptions. The Reliability Indices for 11KV feeders in Rural areas in the prescribed formats on monthly basis are being submitted to the Hon’ble Commission regularly.

Commission views

During the course of public hearing many consumers and their representative complaint on the quality of service of BESCOM and its employees. The Commission directs BESCOM to continue its efforts in further improving the quality of supply, particularly in Rural areas, where the quality of supply is very poor. Action taken

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by BESCOM to improve the quality of supply to consumers is noted, but the same is not supported by relevant data. BESCOM is also directed to furnish the compliance/progress regarding the extent of improvements carried out to the network with details of expenditures made.

6.11 Directive on Reliability Index of supply of power to consumers

As per the schedule - II of the KERC (Licensees’ standards of performance) Regulations – 2004, the licensees are required to compute the following reliability indices

a. Average No. of interruptions in 11KV feedersb. Average duration of interruptions in 11KV feedersc. Average No. of interruptions per consumerd. Average duration of interruptions per consumer.

At present, ESCOMs are furnishing the following monthly data on Benchmark parameters for both Urban and Rural areas separately

a. Average number of interruptions in 11KV feeders

b. Average duration of interruptions in 11KV feeders

Clause 8 under Distribution System Planning and Security Standard of the Distribution Code in the Karnataka Electricity Grid Code- 2005 also specifies computation of the reliability indices for planning of extension and improvement to a distribution system.


The details as per the Commission’s prescribed “Guidelines for determination of Reliability indices of supply of power to consumers” dated 15.12.2008 is furnished monthly to the Commission.

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The reliability indices of 11 KV feeders in Rural areas of BESCOM are not satisfactory and BESCOM is directed to improve the reliability Indices of 11 KV feeders by putting in place a time bound action plan. BESCOM is directed to furnish the above monthly data in the formats prescribed by the Commission as per the “Guidelines for determination of Reliability indices of supply of power to consumers” dated 15.12.2008.

6.12 Directive on Regularization of unauthorized IP sets

The Commission, in a number of letters and in its earlier Tariff Orders, had directed BESCOM to regularize unauthorized IP sets (except those in the grey and dark areas), immediately without imposing any condition and to bring them into books of Accounts and raise bills for the same, immediately.


GoK vide Order dated 11.03.2011 has issued directions for regularization of unauthorized IP sets. As on 30.01.2012, 67972 number of IP sets are registered, out of which 25413 Nos. have been regularized. Now the Government has extended the last date for regularization till 31.03.2012. Further, progress achieved in the extended period will be furnished to the Commission. Commission’s Views

As the occurrence of unauthorized IP sets is a continuous phenomenon, BESCOM needs to address these issues by a regular campaign among farmers and to enlist the support of local law enforcing authorities to prevent unauthorized connections. Further BESCOM is directed to take immediate action to regularize all the unauthorized IP sets by creating necessary infrastructure within the time specified by the Government of Karnataka in its order dated 11.03.2011 and report the compliance.

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6.13 Directive on Metering

The Commission, in a number of letters and in earlier Tariff Orders has directed BESCOM to provide meters to IP sets, BJ/KJ and street light installations, immediately. It has observed that, continuation of supply by BESCOM to these un-metered categories without meters from 10.06.2005 violates the provisions of Section 55 of the Electricity Act, 2003.


Metering ProgressESCOM No.of IP

installationsexisting as on31-01.2012

No.of IP installations for whichmeters arefixed as on31-01.2012

No.ofBJ/KJ

installationsexisting as on

31-01.2012

No.ofBJ/KJ

installationsfor which

meters arefixed as on31-01.2012

No.of StreetLight

installationsexisting as31-01.2012

No.of StreetLight

installations for which meters

are fixedas on

31-01.2012BESCOM 616188 58457 711210 704663 49206 49206

In respect of IP set installations, 9.48% metering is achieved. In respect of BJ/ KJ installations, metering to an extent of

99.07% is achieved. In respect of Streetlights, 100% metering is completed.


The Commission has observed that the progress achieved in metering of BJ/KJ and IP set installations is not satisfactory. The Commission reiterates its directive to achieve 100% metering in respect of IP sets and BJ/KJ installations and report the compliance early.

6.14 Directive on Segregation of Distribution and Retail supply business

BESCOM is directed to segregate accounts between Distribution and Retail supply business by adopting a suitable methodology and implement the same from the next financial year.


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The report of Internal Committee will be referred to a professional Consultancy for necessary validation and pointing out any lacunae /Loopholes in the report. On such validation action to implement the same will be taken during FY13

Commission’s Views

These percentages allocation arrived during previous years may be reexamined and the revised percentage if any shall be considered for the ensuing year.

6.15 Directive on Lifeline supply to unelectrified households

The Commission had directed ESCOMs to prepare a detailed and time bound action plan to provide electricity to all the un electrified villages, hamlets and habitations in every taluk and to every household therein. The action plan shall spell out the details of additional requirement of power, infrastructure and manpower along with the shortest possible time frame (not exceeding three years) for achieving the target in every taluk and district.


D.O letters are addressed to all the Deputy Commissioner of BESCOM area requesting them to intimate whether there are any hamlets or villages which are yet to be electrified. Follow up action will be taken on receipt of details from the concerned Deputy Commissioners.


The Commission hereby directs ESCOMs to prepare an action plan to provide lifeline supply of electricity to all households without electricity in their respective jurisdiction. In its tariff order dated October 28, 2011, the Commission had directed ESCOMs to prepare an action plan to provide life line supply of electricity to all

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Households without electricity in their respective jurisdiction. The ESCOMs could take the latest District wise census data and prepare a detailed project report for extending electricity supply to these Households by availing of funding assistance under the RGGVY or other programmes. The Commission directs BESCOM to complete the task of identification of Households and prepare project reports as mentioned above.

6.16 Directives on Power Supply During Night Hours For Villages

The distribution utilities shall ensure at least 11 hours of single-phase power supply to the Rural areas every day between 6 PM and 6 AM. with provision for one hour of load shedding if required, to manage evening peak demand between 6 PM and 10 PM. The Commission will consider the implications of any additional power purchase required for the purpose


As directed by the Commission, 11 hours of single-phase power supply is being provided to Rural areas. However, one hour of load shedding is being enforced to curtail peak demand on the network.


The Commission reiterates its directive to BESCOM to continue to take action in ensuring11hours of single-phase power supply to Rural areas every day between 6 PM and 6 AM with provision for one hour of load shedding if required, to manage evening peak demand between 6 PM and 10 PM.

6.17 Reliability of Electricity Supply

The Commission directs BESCOM to prepare and publish its weekly feeder/substation wise supply schedules with effect from 1.1.2011 and report compliance to the Commission. The Commission also directs that ESCOMs shall submit to the Commission, by the 10th of

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every month, a report Distribution Zone wise, on the number and duration of interruptions in supply during the previous month with reasons.


Monthly reports of distribution zone wise number and duration of interruptions in supply are regularly being submitted to the Commission from January 2011.


The Commission reiterates its directive to BESCOM to prepare and publish its weekly feeder/substation wise supply schedules to the consumers by using the Information technology within the stipulated period regularly.

6.18 Directive on Responsiveness to Consumers

The commission directs BESCOM to hold consumer interaction meetings in each O&M Sub-Division once in every two months according to a published schedule. Such meetings shall be attended by officers of the level of the Superintending Engineers along with the Divisional and Sub-Divisional level Engineers. BESCOM shall submit a schedule of such meetings to the Commission.


Janasamparka Sabhas are conducted regularly to solve the grievances of the consumers on every Saturday (except Second Saturday) at Sub-Divisional level.

Instructions have been issued vide Corporate Office circular dated 29.12.2010, directing all Sub-Divisions to conduct customer interaction meeting by the Superintending Engineers (Ele). These meetings are held at the Sub-Division level which is presided over

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by jurisdictional Superintending Engineers (Ele,). The field engineers would hear and solve the problems of the consumers.

During such interaction meetings, the consumers have voiced several types of complaints relating to billing, power supply interruption, providing intermediate poles, street light complaints, installation of solar water heater, rectification of sagging conductors, etc. Such grievances are redressed.


The Commission appreciates the efforts made by BESCOM in conducting the consumers’ interaction meeting in all Sub-Divisions of the Company. The feedback of such meetings conducted in one Rural and Urban Sub-Division shall be furnished to the Commission on quarterly basis.

6.19 Directive on Conservation of Energy in Irrigation

The Commission directs that BESCOM shall set up an Efficient Irrigation Promotion cell to promote drip/sprinkler irrigation systems among farmers. These cells should coordinate, with universities of Agricultural Sciences and the various Departments of Government to set up demonstration units of drip irrigation and conduct consumer education programmes for the benefit of IP set users.


BESCOM has already set up a DSM cell in which Efficient irrigation promotion can also be pursued. One such experiment to conduct consumer education programme for the benefit of irrigation pump set users was done at Doddaballapura O&M Sub-Division, WENEXA programme under DRUM project with the assistance of USAID.

Under the WENEXA, existing irrigation pump sets were replaced by Energy Efficient Star rated pump sets through ESCO model. Out of 604 irrigation pump sets, 278 irrigation pump sets were replaced.

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Under WENEXA scheme, water conservation efforts have also been made for about 50 hectares of land covering three villages out of 33 villages. A report on this implementation in three villages for 50 hectares of land is very encouraging. We are also in the process of exploring the possibility of extending this to the balance 30 villages with the help of USAID.


The Commission appreciates the efforts made by BESCOM in implementing Efficient irrigation pump set program under taken by the WENEXA under DRUM project with the assistance of USAID. The Commission directs that BESCOM shall set up an Efficient Irrigation Promotion cell to promote drip/sprinkler irrigation systems among farmers by coordinating with universities of Agricultural Sciences and the various Departments of Government to set up demonstration units of drip irrigation and conduct consumer education programmes for the benefit of IP set users. BESCOM is directed to expedite the process to extend this programme to other areas to reap the benefits and report the compliance to the Commission early.

6.20 Directive on reduction in distribution losses

It is the Commission’s view that ESCOMs can reduce distribution losses to a significant level by taking up certain improvements in the existing distribution networks. The State Level Advisory Committee of the Commission has also discussed these issues on more than one occasion, and suggested specific measures which should be taken by ESCOMs to substantially reduce the distribution losses. Considering the obvious need for the ESCOMs in the State to launch a major drive in this regard, and after considering appropriate technical advice, the Commission directs the ESCOMs to take up the following measures during the current year:

(i) Implementation of HVDS

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In view of the obvious benefits in the introduction of HVDS in reducing distribution losses, the Commission directs that BESCOM shall implement High Voltage Distribution System in at least one O&M Division in a Rural area in its jurisdiction by utilizing the capex provision allowed in the ARR for the year.

(ii) Demand Side Management in Agriculture

In view of the urgent need for conserving energy for the benefit of the consumers in the State, the Commission directs that BESCOM shall take up replacement of inefficient pumps with energy efficient pumps approved by the Bureau of Energy Efficiency, at least in one Sub-Division in its jurisdiction. (iii) Nirantara Jyothi – Feeder Separation

The Commission directs that BESCOM shall take all necessary steps to complete Phase-I of Nirantara Jyothi Project in its area within the Financial Year 2012 and also complete preparations for commencing the implementation of Phase-II of the Programme. BESCOM shall submit monthly reports to the Commission regarding the progress of implementation.

(IV) Optimizing Transformer Capacities

The Commission directs that ESCOMs should undertake a systematic audit of transformer loads in each Sub-Division on a quarterly basis and ensure that transformers installed are of optimum capacity, keeping in view the load to be serviced. BESCOM shall report the results of the audit to the Commission with effect from the last quarter of the calendar year 2011.


(ii) Implementation of HVDS

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The Divisional officer of Ramangaram along with his Sub Divisional officer of Channapatna have visited Tirupathi in Andrapradesh on 18.01.2012 and 19.01.2012 to study the implementation of HVDS in SPDCL of A.P Ltd,. As a pilot project, one of the feeders namely Kodambally feeder (F3) which has 159 nos of DTCs has been selected and it is proposed to install 869 nos of DTCs at an estimated cost of Rs 700 lakhs. The project will be taken up for execution in FY-13.

(ii) Demand Side Management in Agriculture

BESCOM had taken up the task of implementing energy efficient pumpsets in Doddaballapur sub Division under WENEXA programme.

(iii) Nirantara Jyothi – Feeder Separation

The details of compliance is furnished under Directive 3, Taluk-wise Feeders’ Segregation.

(iv) Optimizing Transformer Capacities

Action is still to be initiated. However, the task will be initiated by March 2012 and completed during FY 13


The Commission directs BESCOM to formulate a time bound action plan to implement the above measures which will substantially reduce the distribution losses. As regards implementation of HVDS, the Commission has issued detailed Guidelines / Methodology to be followed by ESCOMs vide its letter No 23/12/499 dated 19.03.2012 by entrusting the study to M/s PRDCL. BESCOM is directed to follow these guidelines and immediately take up implementation of HVDS programme in its jurisdiction without any further loss of time and report the progress/compliance to the Commission early.

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The progress achieved in regard to separation of IP loads under NJY Scheme and Demand Side Management in agriculture is not adequate. BESCOM shall take up DSM in agriculture elsewhere immediately apart from the work which is already completed under WENEXA programme at Doddaballapura. Also, the Commission is of the view that sufficient action has not been taken in respect of optimizing transformer capacities and directs BESCOM to conduct the systematic audit of Distribution Transformers in each Sub-Division expeditiously and submit the results of the audit to the Commission immediately.

6.21 Directive on Improving the quality and reach of service and Adoption of a customer-oriented approach in business

The quality of service provided by the ESCOMs is in need of urgent improvement to meet the expectations and needs of the consumers. The Commission has also noted that a large number of vacancies in the field staff of the ESCOMs and non-availability of materials on a timely basis are two important factors constraining the ESCOMs in providing quality service by undertaking maintenance of the distribution network and attending to the complaints of the consumers. The Commission views the matter seriously and directs the ESCOMs to take the following measures expeditiously:

(i) Recruitment of Field Staff

The Commission, directs that BESCOM shall fill up at least 50 percent of the vacancies in the cadres of Junior Engineers, Linemen and Assistant Linemen during the Financial Year 2012. BESCOM shall submit to the Commission a report on the action being taken to fill up the vacancies as above in the specified time limit.

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BESCOM has notified for recruitment of 580 number of Assistant Linemen. Similarly action is being taken for recruitment of other staff.

(ii)Service Centres for Improved Responsiveness

The Commission directs that BESCOM shall introduce the system of adequately equipped ‘Service Centres’ at least in two Rural Sub-Divisions and report the results of its operations along with details of additional expenditure to the Commission. The BESCOM can introduce the proposed ‘Service Centres’ even with outsourced personnel, if necessary, till the recruitment of their own staff is completed.


Circulars were issued for having more service centres and it is stalled for clarification sought by Employees Union and the same will be resolved.

(iii) Customer-Oriented Approach in Service

The Commission directs that BESCOM shall prepare a detailed training schedule for their Operational and Administrative staff, so that each field level functionary undergoes training at least once in a period of two years. The content and duration of the training programme shall be decided in consultation with HR professionals and the details of the programme and its implementation shall be reported to the Commission on a quarterly basis.


Circulars have been issued to all Sub Division AEEs to conduct Customer Interaction Meetings (CIM) as per monthly schedule. All CEEs of Zone are requested to monitor the implementation of Customer Interaction Meetings on day to day basis and also

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requested to send a comprehensive report to GM(CR & DSM) office. All the AEEs of the Sub-Divisions are conducting Customer Interaction Meetings as per monthly schedule and furnishing the details regularly. The monthly schedule of Customer Interaction Meetings (CIM) notified in Newspapers. Sample proceedings and photos of Customer Interaction Meetings conducted at various places are enclosed.

Schedule of training for operation and administrative staff of BESCOM as follows:

1. BESCOM intends to conduct strategic planning work shop for one day for senior officers of the level of SEE and above in the month of January-2012

2. Two batches of training programme for Asst. Ex Engineer in the month of January – 2012 to be conducted by M/s. Infosys at their campus.

3. For non officials (BPC – adhoc members) training programme will be conducted during the month of January – 2012.

One more initiative taken by BESCOM towards achieving better customer oriented approach in service is that the existing CSC(Customer service centre) catering to the complaint/ grievance redressal needs of the Customer is being upgraded, both in terms of infrastructure as well as Professionally managing the Customer Helpline.

This would provide the Customers easy access for grievance redressal round the clock. The proposed redressal system envisages scrupulous follow up of consumer complaints/ grievances from the time of registration of a complaint till the time of redressal. Any complaint lodged at the CSC will be closed only after confirmation of satisfactory redressal from the customer himself.

Commission’s view

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The Commission appreciates the action taken by BESCOM for preparing a training schedule and imparting training to its Operational and Administrative staff. The Commission desires that this is an important programme aimed at motivating the employees and increasing their effectiveness by upgrading their skill level, it shall be continued without any let up. The implementation of this programme shall be monitored at corporate level for its usefulness and reported to the Commission.

6.22 Measures to improve financial viability

(i) Recovery of Arrears of Receivables

The arrears of receivables to the BESCOM from various consumers including the Local Bodies is to the tune of Rs.2,868.34 crores as on 31.3.2011. The Commission is of the view that the realization of these arrears is crucial to the financial viability of the ESCOMs. The Commission, therefore directs that the BESCOM should immediately take up the recovery of these arrears with Government’s assistance, so that at least 33 percent of the arrears outstanding as on 31.3.2011 are realised every year over the next three years.


1. Status of Arrears as on Jan-12

(Amount in Lakhs)

CategoryArrears As on

Mar-11

Arrears As on Jan-12

Avg Demand

Arrears in terms

of Months (As at

the end of Mar-

11)

Arrears in

terms of

Months (As at

the end of Jan-

12)

% of Contributio

n to the total

Arrears

IP 136282 136003 6044 22.55 22.50 49Water Works 61001 77002 2292 26.62 33.60 28Street lights 33835 42321 1862 18.17 22.73 15Others (BJ/ AEH, Commercial, Industries & Temporary) 21503 21626 69675 0.31 0.31 8

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Total 252621 276951 79873 3 3 100

Steps taken for recovery of IP arrears:

This is mainly attributable to the Balance mentioned figures as at end of July-2008 which is kept frozen. The Company has requested Energy Department to get the same reimbursed by the Government vide letter No MD/GM(R&T)/11-12/760, dated 03/01/2012. from Aug-2008 and onwards, the bill is preferred on the quantum of energy supplied to these categories of Consumers and claim is reimbursed by GOK.

Steps taken for recovery of Water supply & Street lights

The Arrears outstanding against Water Supply and Street Lights installations is due to the fact that the SFC grants provided to ULBs/RLBs/VPs/TPs etc is in short of actual demand. As such the matter is taken up with Energy Department, GOK requesting them to take up the issue with appropriate department for increase of SFC grants of local bodies vide letter no MD/GM(R&T)/11-12/765, Dated 07/01/2012.

Other Arrears:

Arrears outstanding in respect of the other category of consumers except the above two categories, is less than 1/3rd of demand.

Out of Rs 216.26 Crores, Rs 58 Crores is due from BJ/KJ category for having consumed more than 18 units and recovery to the extent of 45 % of demand only. As such the company has taken initiative to educate them of facility under BJ/KJ scheme and the necessitating payment of charges for consumption in excess of 18 Units. Further, it is also informed that if they do not want to pay for the excess consumption; they are instructed to limit to 18 Units per month or face the threat of action as per regulations

(ii) Sub-Divisions as Strategic Business Units

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The present organizational set up of ESCOMs at the field level appears to be mainly oriented to maintenance of power supply without a corresponding emphasis on realization of revenue. This has resulted in a serious mismatch between the power supplied, expenditure incurred and revenue realised in many cases. The continued viability of the ESCOMs urgently calls for a change of approach in this regard, so that the field level functionaries are made accountable for ensuring realization of revenues corresponding to the energy supplied in their jurisdiction.

The Commission directs that BESCOM shall introduce the system of Cost-Revenue Centre Oriented Sub-Divisions at least in two Divisions in its operational area and report results of the experiment to the Commission.

Compliance BY BESCOM

In order to provide adequate emphasis for revenue realization and minimizing technical and commercial losses. a pilot project has been under taken in the jurisdictional Sub Divisions falling under 13 O&M Divisions where Technical wing and Revenue wing are separated and provided functional autonomy.

In these Divisions, Sub Divisional AAO’s are designated as Sub-Divisional Revenue Officers (SROs) and concentrate specifically on Commercial activity and under whose control Meter readers and Linemen are brought for effecting Meter Reading/disconnection and reconnection and technical wing is separated for emphasizing on O&M activity. On successful completion of the above, the same will be considered for extension to all the Divisions.

Further, separate Revenue department is being formed in BESCOM at all levels from Corporate office to Sub-Divisional offices for effective and smooth monitoring of revenue and related matters, so that technical wing can concentrate more on O&M and system improvement activities .

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Commission’s view

The Commission directs that BESCOM shall continue the efforts for realization of arrears without any let up and monitoring of this activity through coordinated efforts at each Sub-Division, Division and Circle levels shall be reviewed at corporate level regularly for its effectiveness. As for introducing the strategic business unit concept BESCOM shall expedite the process and implement it early and report the compliance to the Commission.

6.23 Summary of Tariff Order 2012:

The Commission has approved an ARR of Rs.13025.31 Crores as against BESCOM’s proposed ARR of Rs.14394.96 Crores.

The revenue gap as worked out by the Commission is Rs. 373.05 Crores as against BESCOM estimated gap of Rs.1597.71 Crores.

The Commission has allowed additional revenue of Rs.373.05 Crores on tariff Revision as against the proposed additional revenue of Rs. 1597.71 Crores.

Approved increase in revenue is 3% against BESCOM’s proposed increase of 12 %.

BESCOM had proposed an increase of 73 paise for all categories of consumers other than BJ/KJ & IP Sets. The Commission has increased tariff for IP Sets and domestic category by 10paise per unit and the increase in tariff for other categories is at 20 paise per unit.

Considering the importance of providing drinking water supply under LT Category, the Commission has reduced the tariff for LT Water Supply installations by 50 paise per unit. Also the Commission has retained the tariff for water supply installations under HT category at existing levels.

While determining the revenue gap for FY13, an amount of Rs. 91.00 Crs of Regulatory Asset set aside in the previous tariff order has been absorbed in the revision of tariff.

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Time of the day tariff is made mandatory for installations under HT2 (a) and HT2(b) with contract demand of 500KVA and above. The existing ToD on optional basis for categories under LT5, HT1 and HT2(a) & HT2(b) with sanctioned load/contract demand of less than 500KVA will continue. The reduction of 125 paise per unit is continued for consumption in the off peak period in this system.

In this Tariff Order, the Commission has reintroduced the cross subsidy surcharge payable by open access consumers.

The Commission has also decided to introduce a mechanism for recovery of Fuel Cost Adjustment charge. Separate order in the matter will be issued in due course.

Green Tariff introduced in the previous tariff order for HT Industries & HT Commercial Consumers at their option, to promote purchase of energy from Renewable Sources and to reduce carbon footprint is continued. Consumers opting for green tariff have to Pay Re. 1.00/unitover and above the normal tariff.

A new HT tariff category namely HT5 is introduced for consumers availing temporary supply with a demand of 67HP or more.

The existing Tariff categories HT4 (a) and HT4 (b) for Residential purpose in urban and rural areas respectively are merged as HT4 which is applicable to all areas of the ESCOMs.

As in the previous Order, the Commission has continued to provide a separate fund for facilitating better Consumer Relations /Consumer Education Programs.

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

6.24 Commission’s Order

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1. In exercise of the powers conferred on the Commission under Sections 62, 64 and other provisions of the Electricity Act 2003, the Commission hereby determines and notifies the distribution and retail supply tariff of BESCOM for FY13 as stated in Chapter-5 of this Order.

2. The tariff determined in this order shall come into effect for the electricity consumed from the first metering date falling on or after 30th April 2012.

3. This order is signed dated and issued by the Karnataka Electricity Regulatory Commission at Bangalore this day, the 30th April 2012

Sd/- Sd/- Sd/-

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

Chairman Member Member

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bescom - chapter - 6

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