project 2004

Project- CESCO ‘s Retail Tariff Determination & MIS -An overview

Index

Units Particulars Page

No.

UNIT-I Power sector scenario in orissa

UNIT-II Profile of CESCO

UNIT-III Area of study

UNIT-IV Tariff filling Procedure

UNIT-V Rationale of RTA 2003-04

UNIT-VI Tariff Hearing Procedure of OERC

UNIT-VII Determination of Tariff

UNIT-IX Achievement of CESCO from1999-2004

UNIT-X Conclusion

1


List of Abbreviations:

A& TC Aggregate Commercial & Technical

BST Bulk supply Tariff.

CESCO Central Electricity Supply Company of orissa Ltd.

CPP Captive Power Plant.

EHT Extra High Tension.

PPPAC Power Purchased Price Adjustment clause.

FY Financial Year

GRIDCO Grid Corporation of Orissa Ltd.

HT High Tension.

LT Low Tension.

KVA Kilo Volt Ampere.

KW Kilo watt.

KWH Kilo Watt Hour or Unit

MU Million Units

OERC, (Commission) Orissa Electricity Regulatory Commission.

SEB State Electricity Board.

SMD Simultaneous Maximum Demand.

Transfer Scheme Proceeding and Personnel of GRIDCO to Distribution

Companies Rules, 1998.

T & D Transmission and Distribution

MIS Management Information system.

-2-


UNIT-I

POWER SECTOR SCENARIO IN ORISSA

1.1 The Orissa State Electricity Board (OSEB) was established in 1961 under

the Electricity (Supply) Act of 1948. On its formation, the transmission

assets of the Government of Orissa were transferred to the Board which

also took over the distribution systems and small generating plants of the

various privately owned Electricity Companies in the state. The Electricity

Department of the State Govt. continued to execute major generation

projects with associated extra high tension (EHT) transmission lines and

substations, which on completion, were being transferred to the Board as

asset loans. A State owned Orissa Power Generation Corporation Ltd.

(OPGC) was created on 14th November 1994 to take up the construction

and operation of a thermal generating station using Ib valley coal. OSEB

played a major role in the growth of the State’s power sector. However, by

the early 1990s it became clear that several things were seriously wrong

with the Board. Inadequate investment in the sector, poor management,

dismal performance of OSEB’s own thermal station, mounting technical

and commercial losses, skewed tariff, poor customer care, increasing gap

between demand and availability of energy were all symptoms of the

deepening malaise in the Electricity Board.

1.2 A matter for serious concern was the growing transmission and

distribution (T&D) losses which had a crippling impact on the finances of

the Board. Statistics put out by the Board and even the Central Electricity

Authority/Planning Commission reported Orissa’s T&D losses in the region

of 23% over a number of years. But these figures did not take into

account the losses taking place owing to non-billing, non collection, and

theft of electricity. The under statement of T&D losses was not unique to

Orissa. The audited accounts of OSEB, however had been pointing out a

different set of figures depicted in the following table.


Year Generation/Purchase MU)

Sales (MU) as per revenue return

Loss %

1990-91 6444.018 3525.103 45.301991-92 7331.146 4047.539 44.801992-93 7100.414 3904.078 45.011993-94 7826.412 4573.428 41.571994-95 8493.397 4536.332 46.591995-96 9762.238 5178.894 46.94

The Planning Commission in its Power and Energy Division Annual

Report April 2000 on the Working of State Electricity Boards and Electricity

Departments reported that while the T&D losses for the country as a whole

varied between 19.80% in 1992-93 and 24.5% in 1996-97, in the case of

Orissa, the losses were as under:

Year T&D loss %age1992-93 23.51993-94 23.41994-95 23.81995-96 46.91996-97 50.4

A footnote to the report explains that the sudden jump is due to “the

realistic assessment of T&D losses in the power system after restructuring of

OSEB. Similar position can be observed in case of Haryana and Andhra

Pradesh who also opted for power sector reforms”.

1.3Another nagging problem was growing power shortages. These started

being from the mid-1980s and by the early 1990s, the shortages had

become acute; the power shortage shooting up from 24% in 1991-92 to

37% in 1993-94, exceeding the national average. Government of Orissa

had to issue statutory notifications regulating the supply of distribution

and consumption of electricity by consumer groups. Industries suffered

power cuts ranging from 25% to almost 70% of their requirement

depending upon vagaries of the monsoon. Rotational area load shedding

for consumers was irritatingly common. The worsening situation

compelled industries who could access funds, to go in for captive

generating plants, those who could not, suffered irreparable production

losses. It was only with addition of capacity at Orissa Power Generation


Corporation (OPGC) from August, 1994 that restrictions ceased to be

imposed.

1.4The poor performance of OSEB’s only thermal power station at Talcher

(TTPS) was another distressing feature. The plant suffered from

mismanagement. It had a work force far in excess of requirement, high

auxiliary consumption and extremely poor plant load factor (PLF).

PLF%India Orissa

1990-91 53.90 33.901991-92 55.30 30.001992-93 57.10 34.501993-94 61.00 35.501994-95 60.00 29.00

1.5With generating projects being executed under the Government and

growing emphasis on village electrification, by far the major part of the

investment in the power sector went into those areas, starving the

transmission and sub-transmission segments. A review of investments in

the power sector disclosed that as much as 88% of the total investment

was being made in the generation and rural electrification segments

leaving a meager 12% for transmission and system improvement. Almost

all EHT lines and sub-stations were loaded fully without any standby

capacity. As a result, supply had to be curtailed or shut down even for

routine maintenance. Preventive maintenance had often to be deferred for

this reason. Technical losses, particularly in the HT and LT distribution

segments grew and reached the unacceptably high level of 23% by 1994-

95 as under:

1.6Government of India, in pursuance of the New Economic Policy of 1991

took a number of measures to encourage private sector participation in

electricity generation, supply and distribution as a means of

supplementing Government’s inadequate resources for development of

the power sector. The Central Government and the World Bank were also

making serious efforts to improve the working of State Electricity Boards.

The Bank formulated a new set of policies and announced in 1993 that it

would provide funds to only those utilities, which satisfied the Bank’s

guiding principles in the following matters.


(i) Structural reforms involving dismantling of vertically integrated

monolith organizations like SEBs into separate entities dedicated

to generation, transmission and distribution and the

corporatisation of such entities.

(ii) Electricity pricing to be related to costs, with subsidies to any

particular group to be specifically targeted and provided for by

the Government in a clear and transparent manner.

(iii) Creation of independent and autonomous bodies to regulate the

electricity sector and to set tariffs so as to insulate the electricity

business from political pressures and provides a measure of

comfort to private investors.

(iv) Induct private sector management skills and encourage private

investment in the sector in the context of reduced availability of

funds from governmental sources.

These guiding principles, to a large extent, shaped the course of

electricity reforms in Orissa.

1.7In November, 1993 the State Government confirmed their commitment to

power sector reform and sought the Bank’s assistance in the

implementation of the proposed reforms. The World Bank suggested that

a multi disciplinary team of foreign and Indian consultants would be

necessary to assist the Government in pushing through a comprehensive

reform project like the one, which was under contemplation. Payment to

the consultants was to be met out of a Bank loan of US$10 million and a

grant of GBP35.5 million from UK Government’s Oversees Development

Administration (now the Department for International Development or

DFID). Following consultations with the Bank, the State Government

entered into an agreement, in September, 1994, with the following

consortium of international consultants led by KPMG to assist the State

Government in the reform project.


1.8

Sl.No. Name of the firm Area1. KPMG Peat Marwick, London Management consultants2. National Economic Research

Associates Inc. (NERA), USAEconomic Management

3. McKenna and Co., London Legal Management.4. Monenco Agra Inc. Canada Engineering Management

Simultaneously with these developments, the State Government

notified a Steering Committee chaired by the Chief Secretary to give

policy direction to the power sector reforms and to make their

recommendations to the Government. A Reform Project Directorate

under a senior Chief Engineer supported by a small core support staff

was created to take charge of the day to day activities concerned with

the reform project. A Task Force chaired by the Energy Secretary

oversaw the working of the Reform Project Directorate and provided

guidance to the several Working Groups which were constituted to

study and make recommendations on different aspects of reforms.

These Working Groups consisted of international consultants, local

consultants (many of them retired Chief Engineers of OSEB) and

serving officers of OSEB/State Government.

1.9The first phase of the Reform Project work started in July 1994 when the

State Government notified nine Working Groups to study different aspects

of the power sector reforms, identify the basic strategies to be adopted

and make suitable recommendations. Many of these Working Groups were

required to deal in areas completely new to the State Government and

OSEB and had to draw heavily upon the expertise of foreign consultants

while other Working Groups drew largely upon the expertise of the officers

of the State Government and OSEB with assistance from the consultants.

The blue print of the reforms was drawn up in this process. Its important

components were the following:


- Unbundling of OSEB by structural separation and corporatisation

of generation, transmission and distribution.

- Progressive privatization

- Establishment of an independent authority for power sector

regulation

- Cost-related electricity tariff regime.

1.10 Implementation of the reforms started during the second phase

(March, 1995 to August 1996). During this phase, the original 9 Working

Groups were reconfigured into 7 groups which were then shifted from the

Reform Project Directorate to OSEB so that the blue prints prepared in the

first phase could be implemented smoothly. The Orissa Electricity Reform

Act was passed by the State Legislative Assembly in November, 1995 and

on receiving the assent of the President of India in January 1996, was

notified in January 1996. The Act came into force on 1st April, 1996. The

OSEB was split up into Grid Corporation of Orissa (GRIDCO) to look after

the transmission and distribution business and Orissa Hydro Power

Corporation (OHPC) taking over hydel power generation. The Orissa

Electricity Regulatory Commission was set up to discharge the functions of

the independent regulatory authority under the Reform Act.

1.11 Following intense discussion involving the World Bank, State

Government and Gridco, the mode of privatizing GRIDCO’s distribution

business, the terms and conditions under which the World Bank would be

willing to support GRIDCO and the State Government’s Power Policy

Statement (Annexure-4) were finalised during this period. Both GRIDCO

and the State Government were not in favour of privatization at one go.

GRIDCO’s distribution business had in the meanwhile been configured into

4 distribution Zones and it was decided that one of the Zones could first

be given under a management contract. The Central Zone was given on

management contract basis to BSES. As regards the other 3 Zones, it was

agreed that there may be advantage in privatizing them in the Joint Sector

Venture mode in a sequential manner so that errors made in the


privatization of the first Zone would not be repeated when the next Zone

was privatized.

1.12 The World Bank assessed the financing requirements of the power

sector at US$997 million, the details of which and the proposed sourcing

of the requisite funds are at Annexure-5. The Bank also laid down

preconditions as at Annexure-6 for disbursement of loans. These

conditions were accepted by Government of Orissa and an agreement to

this effect was signed in April, 1996.

1.13 During this period, a grant of GBP 12 million from ODA/DFID financed

two major consultancies, namely, the Reform Consultants and the

Institutional Strengthening Project (ISP) Consultants. The former were

responsible for the preparation of the reform legislation, regulatory

framework, the transfer scheme and the financial basis of the

disaggregated sector while the ISP Consultants were required to assist

with the formulation of organisation structure, personnel policy, work

practices and financial system of OSEB and the successor entities along

with staffing norms and labour surplus. DFID selected all the Consultants:

Price Waterhouse Coopers were engaged as the ISP Consultant, McKenna

(later on Cameron McKenna) provided legal inputs and the merchant

bankers BZW (later on CSFB) provided the merchant banking expertise

while Merz and McLellan provided the engineering expertise for the

Project Management Unit (PMU) which prepared the specifications for the

capital works, tendered them out and monitored their progress.

1.14 During the third phase covering the period 1996 to 2001, a

management contract awarded to BSES with effect from October, 1996 in

respect of the Central Zone comprising the Electrical Circles of

Bhubaneswar, Cuttack and Dhenkanal was terminated in April, 1997. It

was also decided that instead of privatising the 4 Distribution Zones in a

sequential manner, all 4 should be privatised at one shot through a

process of international competitive bidding. Several factors contributed

to this decision which was at variance with the earlier decision to go in for

a sequential privatisation.


1.15 Accordingly, 51% of Gridco’s shareholding in all its 4 distribution

subsidiaries, namely, CESCO, NESCO, WESCO and SOUTHCO which had

meanwhile been incorporated as successor entities of the 4 distribution

Zones, were sold to private parties with effect from 1 April, 1999. When

one of the parties viz. The TEC-Viridian consortium backed out of their bid

for CESCO, negotiations were held with an AES led consortium and the

deal with them was concluded with effect from 1 September 199. In May,

1997, ODA, DFID agreed to finance the third phase covering the period

1996 to 2001 under a grant of GBP 75 million. Out of this, GBP 52.5 million

was towards working capital, stores material, staff rationalisation and a

Load Dispatch and Communication Project (LDCP). The remaining GBP

22.5 million was for technical assistance Consultancy. Assistance from

DFID and World Bank were planned to complement one another. While

World Bank assistance was in the form of loan chiefly for capital projects,

DFID assistance was a grant with a sizeable portion of it towards R&M

items and for staff rationalization being treated as State Government’s

equity participation in GRIDCO so as to earn a rate of return. The

expenditure incurred on consultation services on formulation and

implementation of reforms reported so far is Rs.306 crore (Annexure-7)

which was largely met out of DFID grant.


UNIT-II

Profile of CESCO

As a policy measure of the Government of India the reform in the

power sector is going on throughout the country. The power sector reform to

be concluded by the end of 2005 in whole of India. Orissa is the first state in

our country in which the reform started at first. As a measure of reform the

erstwhile Orissa State Electricity Board (OSEB) was disbunddled on 1.4.96

and new companies like Orissa Hydro Power Corporation (OHPC), Grid

Corporation of Orissa Limited (GRIDCO), Orissa Power Generation Corporation

Limited (OPGC) were formed. During the regime of OSEB the generation

transmission and distribution of power was being made by OSEB itself. After

disbundling of OSEB from 1.4.96 the thermal generation plants along with its

assets, liabilities and personnel were transferred to OHPC and the

transmission and distribution business along with all assets, liabilities,

network and sub-station relating to the area of business were transferred to

GRIDCO. All the new companies started functioning separately as a separate

entity and became responsible only for their area of operation. The main

objective of power sector reform is to provide uninterrupted steady power to

the consumers on demand on reasonable price.

As a part of the power sector reform four distribution companies

namely Central Electricity Supply Company of Orissa Limited (CESCO),

Southern Electricity Supply Company of Orissa Limited (SOUTHCO), Northern

Electricity Supply Company of Orissa Limited (NESCO) and Western Electricity

Supply Company of Orissa Limited (WESCO) were incorporated on 19.11.97 to

separate the distribution business from GRIDCO. All the above four

companies were formed as wholly owned subsidiary companies of GRIDCO.

The distribution of electricity of the state were divided among the above four

distributed companies.


As explained in the above Para CESCO was incorporated on 19.11.97

as a wholly owned subsidiary of GRIDCO. The company received certificate

for commencement for business on 30.12.97 but the company was not

functioning as a separate entity. The Government of Orissa issued a gazette

notification on 25.11.98 vesting the distribution assets like lines and sub-

station etc. The liabilities, the personnel on as is where is basis through

notification in the official gazette. CESCO started functioning with affiliation at

GRIDCO with effect from 26.11.98 for distribution of power to the consumers

in its area of operation. As per gazette notification the areas covered under

CESCO is the undivided Cuttack, Puri & Dhenaknal distribution since

electricity distribution business is a licensed business. CESCO obtained the

license for distribution of power in its area of operation from Orissa Electricity

Regulatory Commission (OERC) on 1.4.99 and started power distribution

independently with effect from said date.

CESCO enjoys the monopoly of power supply to the consumer in its

area of operation as there is no other competition exists in the area till date.

51% of the share of CESCO was dis-invested by GRIDCO to AES-Orissa

Distribution Private Limited which is a joint venture of AES Corporation USA,

Jyoti Structures Limited, Mumbai on 1.9.99 and 49% of the shares continued

to be with GRIDCO. A share holder agreement, share transfer agreement etc.

were signed on the date of transfer of shares between GRIDCO, CESCO and

AES. As per the shareholders agreement the management of the company

were transformed from the hands of GRIDCO to the hands of AES Corporation

in 1.9.99.

Structure of the Company:

CESCO is having authorised issued and paid up capital of

Rs.72,72,00,000 consisting of 72720000 number of equity shares at the rate

of Rs.10/- each. As per shareholding agreement one Director to be nominated


by the shareholding companies for every 10% of share held by them.

Accordingly AES nominates 5 Directors and GRIDCO 4 directors. The

Managing Director and all other functional director are appointed are

nominated by the majority shareholder (AES) and the Chairman of the Board

is nominated by the minority shareholder i.e. GRIDCO. The registered office is

at second floor, IDCO Towers, Bhubaneswar with five circles at Bhubaneswar,

Cuttack, Dhenkanal, Paradeep and 19 Distribution Divisions at Bhubaneswar,

Nimapara, Puri, Cuttack, Athagarh, dhenkanal, Anugul, Talcher, Khurda,

Balugaon, Nayagarh, Nuapara, Salepur, Jagatsinghpur, and Marshaghai. 61

sub-divisions and 259 sections spread throughout its area of operation. Power

and authority has been delegated suitably to different officers for speedy

disposal of the matter. The head quarter of the company consists of different

divisions headed by experienced professional like Finance, Rural

Electrification, Personnel, Planning, MIS, Commerce, Billing, etc.

Function:

The infrastructure available with CESCO as on 31.12.2003 are given

below:

No. of Circle : 5

No. of Divisions : 20

No. of Sub-division : 61

No. of Section : 245

Length of 33 KV lines in KM. : 2591.455

Length of 11 KV lines in KM : 14464.32

Length of LT lines in KM : 18569.98

No. of 33/11 KV Transformers : 346

No. of Distribution Transformers : 15790

No. of 33 KV Feeders : 125

No. of 11 KV Feeders : 536

The no. of consumers as on 31.12.2003 under CESCO was 811176 and

CESCO has purchased 2996 MU of power from GRIDCO during the period


1.4.2003 to 31.12.2003 and sold 1824 MU to the consumers. The main

function of CESCO is to purchase electricity from GRIDCO in bulk rate and

distribute the same to the consumers of different categories at the price as

decided by OERC in the tariff.

The consumers are broadly categorized as LT, HT, and EHT. Low

Tension (LT) Consumers are those who gets the supply at 240 Volt. High

Tension (HT) are those consumers who gets their supply at 11 KV line & Extra

High Tension (EHT) consumers are those who get their supply at 33 KV and

132 KV.


UNIT-III

AREA OF STUDY

My area of study is confined to filling and analysis of Annual Revenue

Requirement (ARR) and Retail Tariff Application (RTA) of CESCO. The analysis

of Annual Revenue Requirement (ARR) and Retail Tariff Application (RTA) of

the licensee before the Orissa Electricity Regulatory Commission (OERC) for

revision of retail tariff. Since the distribution companies can’t fix increase or

decrease the tariff, they have to make an application before the Orissa

Electricity Regulatory Commission which is the competent authority to do the

same backed by sufficient evidence in the form of an application called

Annual Revenue Requirement (ARR) and Retail Tariff Application (RTA). The

Annual Revenue Requirement (ARR) and Retail Tariff Application is a

mandatory exercise of the distribution company which is also called as

licensee. Every year the distribution companies file their Annual Revenue

Requirement (ARR) and Retail Tariff Application (RTA) with in Orissa

Electricity Commission which ultimately fixes the tariff.

The Annual Revenue Requirement (ARR) and Retail Tariff Application

(RTA) is filed in specific formats provided by Orissa Electricity Regulatory

Commission (OERC) which ultimately fixes the tariff.

The Annual Revenue Requirement (ARR) and Retail Tariff Application

(RTA) formats provided by Orissa Electricity Regulatory Commission (OERC)

are broadly divided into three parts:

(i) Technical Format [Provides Billing information](ii) Finance Format (Provides Financial information])(iii) Performance Format (Provides technical& Engineering

information )

Data regarding technical, financial and performance related matters of

licensee is provided in the above formats for three years that is:

(i) Previous year(ii) Current year(iii) Ensuing year

The previous year & current year data are generally available and

gathered from concerned department and compile while the ensuing

year data is projected basing on the trends of past year.


CONSUMER CATEGORY

Types of consumer category:

1) Low Tension (LT)

2) High Tension (HT)

3) Extra High Tension (EHT)

1] Low Tension (LT)

a) Domestic

i) Domestic urban

ii) Domestic rural

iii) Kutir Jyoti

b) Commercial

i) Commercial urban

ii) Commercial rural

iii) Commercial over 10 KW

c) Small industries

d) Medium industries

e) Irrigation

i) Irrigation – OLIC

ii) Private

f) Public lighting

g) Public water works below 100 KW.

h) Public institution below 110 KW.

2) High Tension (HT)

a) Large Industries below 132 KW

b) Mini steel plant


c) General purpose

d) Bulk supply – Domestic

e) Public Water works above 100 KW.

f) Public institutions above 100 KW.

3) Extra High Tension (EHT)

a) Heavy industries

b) Power Intensive Industry

c) Railway Traction

d) Large industries at 132 KV

CLASSIFICATION OF CONSUMER

Licensee may classify or reclassify the consumer into various

categories from time to time as may be approved by the Commission and fix

different tariffs and conditions supply for different class of consumers. The

present classification is as follow:

(a) Domestic

This category relates to supply of power to residential premises for

domestic purpose only and shall include consumers under Kutir Jyoti

Programme. This shall also include supply to occupants of flats in

multi-storied buildings or residential colonies receiving power at single

point for domestic purposes when connected load for non-domestic

load exceeds 10% of the total connected load. Incase the non domestic

load exceeds 10% of the total connected load, they shall be treated as

commercial or general purpose consumers as applicable. This shall not

cover residential colonies attached to industrial establishment where

power supply is drawn through the meter of the industrials

establishment.

(b) Commercial


This category relates to supply of power to premises which are used for

office, business, commercial or other purposes not covered under any

other category with a contract demand upto but excluding 110 KVA

and where the non-domestic load exceeds 10% of the total connected

load.

(c) Street Light

This category relates to supply of power to a local authority or public

body for providing street lights.

(d) Railway Traction

This category relates to supply of power for Railway Traction.

(e) Irrigation Pumping and Agriculture

This category relates to supply of power for pumping of water in lift

irrigation, flower irrigation and for lifting of water from wells, nallahs,

streams, rivulets, rivers, ponds, dug wells exclusively for agricultural

purposes.

(f) Public Water Works and Sewerage Pumping Installation

This category relates to supply of power for public water supply and

sewerage pumping installations owned and operated by the State

Government, local bodies or their agencies.

(g) General Purpose

This category relates to supply of power for all general purposes

comprising mixed load and with a contract demand of 110 KVA and

above where the non-domestic load exceeds 10% of the total

connected load.

(h) Public Institutions

This category relates to supply of power to educational institution

including hostels, government hospitals, government dispensaries,

primary health centers, charitable dispensaries, religious institutions,

dharmasalas, electric crematoriums and non-commercial sports

organisations.


(i) Small Industries

This category relates to supply of power for industrial production

purpose with a contract demand below 22 KVA, where power is

generally utilised as motive force.

(j) Medium Industries

This category relates to supply of power for industrial production with a

contract demand of 22 KVA but below 110 KVA, where power is

generally utilised as motive force.

(k) Large Industries

This category relates to supply of power to industries with a contract

demand of 110 KVA but below 25000 KVA, where power is

substantially utilised as motive force for industrial production.

(l) Heavy Industries

This category relates to supply of power to industries with a contract

demand of 25000 KVA and above where power is substantially utilised

as a motive force.

(m) Mini Steel Plant

This category relates to supply of power to steel manufacturing units

licensed to operate as mini steel plants with contract demand of 4444

KVA and above where power is ordinarily utilised in induction or are

furnances.

(n) Power Intensive Industries

This category relates to supply of power to industries where power is

substantially utilised as raw material involving electro-chemical or

electro-metallurgical processes with a contract demand of and above

2000 KVA.

(o) Temporary Supply

This category relates to supply of power to meet temporary needs on

special occasions including marriage or other ceremonial functions,


fairs, festivals, religious functions or seasonal business provided that

such power supply does not exceed a period of six months.

(p) Industries Owning Generating Plants (Captive Power Plants)

Availing Emergency Supply Only.

This category relates to supply of power to industries with generating

plants or including Captive Power Plants only for start-up of the unit or

to meet their essential auxiliary and survival requirements in the event

of the failure of their generation capacity. Such emergency assistance

shall be limited to 25% of the rated capacity of the largest unit in the

Captive Power Plant or Generating Plant. In case any special provision

is made in a Power Purchase Agreement, approved or accepted by the

Commission, such provision shall apply in such cases, subject to the

provisions of this Code.

CONSUMERS UNDER SPECIAL AGREEMENT

The licensee may, having regard to the nature of supply and purpose

for which supply is required, fix special tariff and conditions of supply for the

consumers not covered by the classification enumerated in this Code. For

such purpose licensee may enter into special agreements with the approval

of the Commission with suitable modifications in the Standard Agreement

Form. The tariff in such cases shall be separately approved by the

Commission.

RECLASSIFICATION OF CONSUMER

It is found that a consumer has been classified in a particular category

erroneously or the purpose of supply as mentioned in the agreement has

changed or the consumption of power has exceeded the limit of that category

or any order of reduction or enhancement of contract demand has been

obtained,

the engineer may reclassify him under appropriate category after issuing

notice to him to execute a fresh agreement on the basis of the altered


classification or modified contract demand. If the consumer does not take

steps within the time indicated in the notice to execute the fresh agreement,

the engineer may, after issuing a clear seven days show cause notice and

after considering his explanation, if any, may disconnect the supply of power.

UNIT-IV


Tariff Filling Procedure:

Subject to the provisions of the Electricity Act, 2003 and the Orissa Electricity

Reform Act, 1995, each year, by 30th November or by such other time as may

be directed by the Commission, each Transmission and Distribution Licensee

shall file with the Commission, in the format as may be laid down by the

Commission, statements containing calculation of the expected aggregate

revenue from charges under its currently approved tariff and he expected

cost of providing services for the ensuing financial year.

CESCO, which was initially incorporated as a wholly-owned subsidiary

company of GRIDCO, obtained licence from Orissa Electricity Regulatory

Commission for distribution and retail supply of electricity in Bhubaneswar,

Cuttack and Dhenkanal Electrical Circles with effect from April 1, 1999. With

the sale of 51% of equity holding to a strategic investor i.e. a consortium of

AES and Jyoti Structures, CESCO became a joint sector company with effect

form 01.09.99. Subsequent to this restructuring and operating as a licenced

utility, CESCO is filling its calculation of aggregate revenue along with a

proposal for increase in tariff to meet the shortfall between the revenue

requirement and the expected costs.

For the purpose of filling of ARR (Annual Revenue Requirement) and

RTA (Retail Tariff Application), data relating to

Previous YearCurrent Year &Ensuing Year (Next Year)

Need to be submitted in a specific format as prescribed by OERC.

The ARR (Annual Revenue Requirement) and RTA (Retail Tariff

Application) broadly contain the following details:

(a) The licensee’s demand forecast by customer or consumer category for

the ensuing financial year and the basis of the forecast.

(b) A calculation of expected aggregate revenue that would result from

the above demand during the same period under the currently

approved tariff by customer or consumer category.


(c) A calculation of the licensee’s estimated costs of providing the service

required by the level of demand indicated in clause (a) above for each

category of consumers during the stated period calculated in

accordance with the financial principles and their application contained

in the Sixth Schedule to the Electricity (Supply) Act, 1948 as was in

force before the repeal of the said Act by Electricity Act, 2003 or such

other principles the Commission may direct from time to time.

(d) In case the Licensee carries on any business or services other than

those licensed, the Licensee shall give separate revenue and expense

statements together with such details as the Commission may require

in respect of such business or services and,

Such other information as the Commission may direct.

After filling of ARR & RTA with the OERC the following activities took place

1. The commission examines the application and asks for clarification to

the licensee to fill-up deficiencies if any in the application.

2. The commission orders the licensee to make available the tariff

application tot he general public for sale.

3. The public is requested to file objections on the proposed tariff of the

licensee with the commission by a specific date.

4. A date is fixed for hearing of the case between the licensee and

objectors at the commissions hearing hall. Both parties are given

chance to present their case before the commission on that date.

5. After hearing both parties and taking into consideration all other

material facts the commission decides and fixes the tariff.

UNIT-V


1 RATIONALE FOR RETAIL TARIFF APPLICATION-2003-2004

CESCO is reeling under a severe financial burden. The gap between

revenue from sale of power to the actual expenditure incurred by it is

increasing with every passing day. Under these trying circumstances

the licensee is finding it difficult to fulfill its obligations as a licensee.

The continued financial constraints are threatening to jeopardize the

very existence of the organization. The realities on the ground are

vastly different from the benchmarks that are considered for in the

Tariff Setting process and are seriously affecting the extent of cost

coverage. Accordingly the licensee requests the Commission to relax

its benchmarks and revise the existing tariff rates as early as possible

keeping in view the financial stress under which it is operating.

The revenue requirement of CESCO in FY 04 is Rs 211600 lakhs. At

present tariff rates, the revenue generated is Rs 75971 lakhs. Hence

the shortfall in revenue requirement is Rs 135629 lakhs.

Table 1 Uncovered deficit

Rs. Lakhs Revenue

Revenue Requirement for FY04 211600Revenue Generation for FY04 based on existing tariff

75971

Revenue Gap 135629Revenue Generation for FY04 based on proposed tariff in the application applied for full year

90190

Revenue Deferred (Proposed) if proposed tariff in the application applied for full year

121410

To avoid a rate shock the licensee humbly prays to the Commission

that Rs. 121410 lakhs may be treated as a regulatory asset and be

allowed to recover it over the next three years (i.e. FY 05,FY 06 and FY

07) and the interest cost on account of the regulatory asset be allowed


to be recovered as a pass-through. The rate of interest for carrying this

asset may be set as applicable after each year.

Apart from the First Tariff Order of the Commission, which came into

effect from 1-4-97 and was applicable for a full year, all subsequent

tariff revision orders have been enforced in the last few months of the

financial year. The existing tariff for FY 01 came into effect from 1-2-

2001 and the tariff previous to this, for FY 00 were effective from 1-2-

2000 – a delay of 10 months in each year. On account of this cost

recovery in a financial year has been limited and CESCO has had to

bear the losses arising out of the difference between the actual

expenditure and the normative criteria of the Commission. The

financial losses suffered in FY 00 and FY 01 are enormous and CESCO

presently stands on the brink of liquidation with its net worth of

Rs.7272 lakhs eroded several times over. Further there was no tariff

revision during FY03.

Hence it is of vital importance that this application is accepted and

tariff rates are suitably revised so as to ensure the survival of the

organisation.

CESCO is probably one of the few utilities in the world that have borne

the brunt of nature’s fury in such quick succession. The devastating

super cyclone followed a sudden storm in Cuttack and Bhubaneswar

that affected power supply to major parts in the City of Cuttack and

Bhubaneswar . It is to the credit of the licensee that it has not only

restored the power supply in a very short time but has also initiated

steps to stem the tide of increasing overall losses, the worsening sales

mix notwithstanding

Further to this the initial adoption of the 35 % as the maximum T & D

loss allowable in Tariff Order 97 and the subsequent lowering to 34 %

vide Tariff Order 01 and 35.94% vide Tariff Order 02 does not bode

well for the licensee. The ground realities are totally different and the

licensee humbly requests the Commission to adopt a benchmark that

is within the achievable limits.


2. ENERGY SALE ESTIMATION

The actual energy consumption for a period of three years starting

from FY 01 to FY 03 has been considered to estimate the energy

consumption during FY 04. The actual sales figures have been obtained

from the monthly MIS reports prepared by CESCO.

2.1 ENERGY SALE IN FY00, FY 01 & FY 02

In FY 02, total energy sale decreased by 3.42 % over FY 01 with a

significant increase in sales to LT category. Energy purchased in FY 02

as compared to FY 01 increased by 4 %. In FY 02, sales to EHT

category decreased by 34.66 %. Due to a limited consumer base in

EHT category a decline in consumption of a single unit causes wide

fluctuations in the total EHT consumption pattern on a year on year

basis.

Table 2 Energy Sale

SegmentFY 00 Billing

MU

FY 01 Billing

MU

FY 02 Billing

MU

Change FY01 over FY00

Change FY02 over

FY00

LT category 1332 1380 1425 4%7%

HT category 338 385 422 14% 25%

EHT category 320 453 296 41% -8%

Total Sales 1990 2219 2143 11% 8%Energy purchase

3608 4025 4186 12% 16%


Table 3 Energy Sale in HT category

No of consumers

Billed (MU)

No of Consumer

s

Billed (MU)

No of consumers

Billed (MU)

% Change in MU

02-00Consumer category FY00 FY00 FY01 FY01 FY02 FY02

Large Industries Below 132kv

145 193 145 213152 209 8%

Mini Steel Plant 1 9 1 18 1 20 125%

General Purpose 140 91 149 101157 138 51%

Bulk Supply – Domestic

35 9 38 1145 15

64%

Public Water Works Above 100kw

16 25 16 3018 27

9%

Public Institution Above 100kw

28 11 28 1279 13

22%

HT TOTAL 365 338 377 385 452 422 25%

The EHT category predominantly consists of nine consumers. A new

consumer (Oswal Chemical & Fertiliser –Paradeep) was added in FY00.

Another new consumer Railway Traction was added in FY02 The

individual consumer analysis indicates lower energy offtake by three

consumers’ i.e. FCI, PPL, OSWAL and Heavy Water Project. Lower

energy off take by large consumers is a serious concern to CESCO.

Table 4 Energy Sale in EHT category

Consumer (Billed MU)

FY00 FY01 FY02% Change (02-

00)Large industries At 132 kV

82 174115

40%

Railway Traction 0 0 2 0

Heavy industries 141 137 148 5%Power Intensive Industries

98 14130

-69%

Total 321 452 296 -8%


2.2 ENERGY SALE MIX BETWEEN LT, HT AND EHT CONSUMERS

Lower energy sale in EHT category in the previous year as compared to FY00 and corresponding increase in LT share of energy sale is a matter of concern for CESCO. As per the demand projection (provided in the subsequent section) it may be noted that the share of EHT sale has fallen further. The licensee humbly prays to the Commission to allow the category wise loss benchmarks so that the varying sale mix does not affect the licensee, which is beyond the control of the licensee.

Table 5 Sale mix variation

Segment CESCO FY 00 CESCO FY01 CESCO FY 02Billed (MU)

% of Total

Billed (MU)

% of Total

Billed (MU)

% of Total

LT category

1332 67%1379 62%

1425 67%

HT category

338 17%387 17%

422 20%

EHT category

320 16%453 20%

296 14%

Total 1990 100% 2219 100% 2143 100%

The change in mix impacts the loss levels perceptibly. Though the EHT

demand has reduces by 6% , the LT demand has increase by 5%. This

change in consumer mix has increase the loss level.

2.3 BASIS FOR ENERGY SALE ESTIMATION FOR FY 04

To prepare a realistic energy sale estimate, we have:

carefully evaluated past billing information (CESCO MIS Reports) for each category i.e. changes in number of consumers, specific consumption etc;

studied the effect of loss reduction initiatives and their impact on billed units;

analysed energy offtake by individual consumers in EHT category including additional information on likely offtakes; and,

used realistic assumptions, operating realities and current economic situation.

2.3.1. LT & HT category – Projections basis by consumer sub-categories

The following steps have been taken to estimate demand for FY 04:


For all categories the actual consumption as recorded in CESCO monthly MIS reports for FY 02(Apr01 – Mar 02), and reports for FY03(April-02 –Sept-02)

Additional billing due to the addition of new consumers.

Change in billing due to change in specific consumption.

2.3.2 EHT Category – Consumer-wise Projection Basis

To determine the expected energy sale for EHT consumers in FY 04,

actual consumption for all consumers in FY 02 have been analysed and

any intimation for change in contract demand or energy offtake by

these consumers was considered after consulting field officers.

Navchrome – An EHT consumer belonging to Power Intensive Industry

category is an important EHT consumer of CESCO. As compared to the

corresponding period in FY 02 there has been a sharp increase in

consumption in FY 03. The table below depicts the increase in drawl

which was possible by allowing a special rate to the above consumer

Table 6 Navchrome Consumption Details (All figures in MU)

April May June July Total ( Apr-June)

FY 02 0.05 0.05 0.05 0.04 0.19

FY 03 8.365 11.533 13.957 15.283 49.138

Oswal Chemicals – The consumer has reduced consumption and is also

using its own generation to meet a part of its energy requirement. It is

imperative that it is not in the interest of CESCO and the subsidised

categories of consumers for an EHT consumer to move out of the grid.

The recent trend in consumption has only indicated the above.

Table 7 Oswal Chemicals - Consumption Details (All figures in MU)

April May June July Total ( Apr-June)

FY 02 .92 6.27 4.89 6.67 18.75

FY 04 0.076 6.131 6.180 3.391 15.778


Energy sale estimates for FY 04 for all voltage-wise consumer

sub-classes are given in RT-1. The projected sale in LT, HT and

EHT categories for FY 04 is summarized below.

Table 8 Energy sale forecast summary for FY 04

Voltage category

FY 02 (MU)

FY 03 (MU)

FY 04 ( MU)

% increase

LT 1425 1496 1680 12%

HT 422 384 431 12%

EHT 296 486 423 -13%

Total 2143 2366 2534 7%

3. ENERGY LOSSES

The licensee has targeted a distribution loss reduction of 8% in LT and

HT categories. Due to change in the sales mix the overall distribution

loss will reduce from 49% in FY02 to 42% in FY03. The licensee humbly

prays to the honourable Commission to approve category wise

distribution loss benchmark of 40% for combined LT and HT category

and 0% for EHT category.

3.1 DETERMINANTS OF LOSS

The type of sales mix in a utility determines the extent of losses in a

system to a large extent. It is common knowledge that the incidence of

losses are the highest at the LT level and the least at the EHT level,

thus any shift from EHT to LT is bound to affect the overall losses in a

system. In the absence of a proper metering of the feeders at all

levels, we have for the purpose of computation taken two broad

categories - EHT and (LT & HT) taken together. It is presumed that

there are no losses at the EHT level and all losses are at the LT & HT

level taken together.


Table 9 Actual Billing for FY ’02

Category EHT LT & HT TOTALReceived into the system

4186 3891 4186

% loss in the system 0.00% 53% 49%Less : Loss in the system

0 2043 2043

Transmitted through the system

3891 1847 3891

Sale at system voltage 296 1847 2143

Table 10 Effect on losses due to shift in 10% billing away from EHT

Category EHT LT & HT TOTALReceived into the system

4186 3920 4186

% loss in the system 0.00% 53% 50%Less : Loss in the system

0 2078 2078

Transmitted through the system

3920 1842 3920


In the above tables the total losses in the system is 49%. If there was a

change in pattern of consumption with 10 % of the overall load shifting

from the EHT category to the non EHT category then the overall loss

will increase by 1 % assuming that the loss in the non EHT category

remains constant at 53 %. This implies that for same quantum of sales

a change in mix affects the loss levels and also imposes additional

financial constraints on the licensee. The licensee therefore appeals for

the approval of category wise loss by the Honourable Commission.


Table 11 Projected Billing for FY04

Category EHT LT&HT Total

Received into the system 3960 3537 3960

% loss in the system 0.00% 40% 36%

Less : Loss in the system 0 1426 1426Transmitted through the system

3537 2111 3537


From the above tables it is amply clear that there is a major decline in

the EHT off take as compared to that of FY03. Slow-down of the

economy and setting up of CPP has contributed to the reduction in the

off take of EHT Consumers. The decline in energy consumption in the

EHT category is a serious concern for CESCO. However in spite of the

adverse sales mix the licensee has targeted a loss reduction of 6%.

The onerous nature of such task can be stated from the simple fact

that entire loss reduction initiatives will be targeted on the LT and HT

side of the business. It may be noted that the licensee is actually

targeting a loss reduction of 8% in LT & HT Category.

Considering the current loss levels a target of 35.94% distribution loss

is unachievable. The licensee humbly draws the attention of the

Honourable Commission about the loss levels quoted in Gridco

administrative reports. The report has quoted a loss level of 41.56% in

FY95 and 46.94% in FY96. On the other hand the accounts statement

of Gridco reported a lower loss figure. It is well within the knowledge of

the Honourable Commission that underreporting of the T & D losses is

not in the interest of the licensee. In light of this the licensee humbly

requests the Commission to reaffix the baseline distribution loss levels

as existing and agrees to undertake an aggressive loss reduction

programme.


The licensee hereby draws the attention of the Honourable

Commission that unless loss levels are reaffixed and losses are

specified as per voltage the financial viability of CESCO is threatened

which in turn affects its ability to seek funds from Banks and FIs.

3.2 LOSS REDUCTION PROGRAMME FOR FY 04

The licensee is fully committed to reduction of losses and is providing

full managerial expertise and has set ambitious targets. These targets

have been computed on the basis of sound assumptions and action

plan (discussed below). Detailed calculations on these targets are built

in the demand projection model.

Focus on implementation of commercial procedures and implementation of the billing calendar- accurate meter reading, timely bill preparation, proper bill distribution, effective complaint redressal and credit control activities across all divisions.

Streamline the bill preparation process , introduction of spot billing etc. and working in close coordination with the billing agents in the division they are assisting in the generation of the bills.

Providing meters to all un -metered consumers and consumers having defective meters and installation quality in industries through MRT department to prevent meter tampering;

Emphasize on rural areas by the formation of village committees and thus involving the general consumers

Continuation of de hooking squads.

Set and monitor loss reduction targets at the division level

Introduce meter reading cards and check meter readings frequently on a sample basis

Strengthen MIS including software and systems for monitoring and detection of illegal abstraction

Steps are being taken to arrange finances to introduce a VRS that would lower the average age of CESCO and will also assist in reducing the establishment expenses of the company.

3.3 LOSSES FOR FY ‘03

The voltage wise Loss stipulation for CESCO is in the following Table

and this needs to be allowed for Revenue Requirement computations.

In the absence of feeder meters it is difficult to determine the losses at


various voltage levels and for purposes of computation, energy

consumption in EHT category has been taken separately and LT and HT

energy consumption has been clubbed together .The projected loss

levels is as shown below

Table 12 Projected Loss

Category EHT LT&HT Total

Received into the system 3960 3537 3960

% loss in the system 0.00% 40% 36%

Less : Loss in the system 0 1426 1426Transmitted through the system

3537 2111 3537


4. Expenditure of CESCO

4.1 COST OF POWER PURCHASE

The Power Purchase cost incurred in the Current Year (i.e., from

April-’02 to December’02), based on actual BST Bills is Rs. 40482 lakhs

for purchase of 3090 MU. The Cost of Power Purchase (CoPP) for the

Ensuing Financial Year (i.e., from April-’03 to March ’04) has been

maintained at an average rate of Rs 1.31/unit. The energy to be

purchased for FY 04 is 3960 MU and therefore the Power Purchase cost

proposed is Rs. 51876 lakhs.

CESCO has fully understood the apprehensions of the Commission “in

allowing tariff without scrutiny of The Commission” (Section 8.19 of

Tariff Order of December 1999), however it has no control over the BST

rates and it requests the Commission to factor any upward revisions of

the BST rates. CESCO has no intention of profiting or bearing losses on

the BST variation but desires that the exact change in BST should be

reflected in the Retail tariff. The Power purchase cost projected for

FY04 is Rs. 51876 lakhs. This may be approved. If this is not approved

the Purchase Power Price adjustment clause as in Section 7 of this

Application may be approved.


Table 13 Cost of power purchased

Rs. Lakhs

Retail Tariff Application for FY-2004 53448

Power Costs for FY-'02 (Actual as per BST Bills) 57481

Power Costs for FY 01 ( Actual as per BST Bills ) 51088

4.2 EMPLOYEE COST

The Employee expenses projected for FY04 is Rs. lakhs. The

comparative figures of the three consecutive years is shown below:

Table 14 Employee cost

Rs. Lakhs

Retail Tariff Application for FY-2004 10918

Provisional for FY-'03 9547

Provisional for FY-'02 9539

The enhancement of employee costs in the tune of 14 % has been

made as compared to the current year. The Commission may take a

view on this and pass this as a pass-through in the present tariff

application.

4.3 ADMINISTRATION & GENERAL EXPENSES

The Administration & General Expense costs projected are Rs.

1861.95 lakhs.

Table 15 A&G costs

Rs. Lakhs

Retail Tariff Application for FY-2004 (Projected for FY-'04) 1861.95

Provisional for FY 03 1774.52

Provisional for FY 02 1138.75


CESCO needs to undertake vigorous field activities to achieve its

targeted loss levels. The field activities invite additional costs that the

licensee humbly prays to the Honourable Commission to approve.

4.4 REPAIRS AND MAINTENANCE EXPENSES

The R&M expenses proposed is Rs. 3184 lakhs for FY04. The details of

the three consecutive years of R&M expenses are furnished in Table 16

below:

Table 16 R&M costs

Rs. Lakhs

Retail Tariff Application for FY 04 3184 Provisional FY 03 2949 Provisional for FY 02 2601

The projected R&M costs for the Ensuing year (FY 2004) is Rs.3184

lakhs. The expenditure incurred for FY 03 is Rs 2949 lakhs. The

increase in projected R&M costs is 8% as compared to the costs

incurred in FY 03.The rationale behind such costs is to ensure proper

maintenance of CESCO’s “aged” assets and to ensure that they are in

optimal working condition. This is vital for ensuring quality and trouble

free power supply to our consumers. This is in line with earlier OERC

observations vide Tariff Order dated 21st November 1998 about the

need for asset upgradation.

4.5 PROVISION FOR BAD AND DOUBTFUL DEBTS

The provision for Bad debts for FY04 has been pegged at Rs.

1650 lakhs. The bad debt provision has been made @15% on

incremental debtors.

Table 17 Provisions for bad debts

Rs. Lakhs

Retail Tariff Application for FY 04 1650

Provisional for FY 03 2475



4.6 DEPRECIATION

Depreciation for the year FY04 is projected at Rs 6290 lakhs. The

computation of Depreciation is based on Ministry of Power notifications

issued from time to time as applicable to Distribution Assets.

Table 18 Depreciation

Rs. Lakhs

Retail Tariff Application for FY-2004 ) 6290



4.7 INTEREST

4.7.1 Interest Chargeable to Revenue

For the Ensuing Year FY 04 the interest proposed to be charged to

Revenue in the Ensuing Year (FY 04) is Rs. 5509 lakhs. Interest

charged to Revenue for the Current and Ensuing Years is given in the

following table:

Table 19 Interest Charged to Revenue (A):

Rs. Lakhs

Projected for FY 04 5509



Interest on various loans availed from individual lending agencies

is in the following Table:


Table 20 Interest Charged to Revenue (B):

(Rs. Lakhs)Lender/Source FY 03 FY 04

Loan Agreement with GRIDCO 4839 5509

IBRD Loan for System Improvement 2256 2766

Other Charges

Total 7095 8275

Less Interest Capitalized 2256 2766

Total 4839 5509

4.7.2 Interest Chargeable to Capital Works as IDC for the Ensuing Year (FY 04)

The interest proposed to be charged to Capital Works, as Interest

During Construction (IDC) for the Ensuing Year is Rs. 2766lakhs.

Interest charged to Capital Works for the Current Year (FY-’03) and the

Ensuing Year (FY-’04) is given in the table below:

Table 21 Interest Charged to Capital Works:

Rs. Lakhs

Projections for FY 04 2766



Table 22 Interest during Construction capitalised on Various Loans

(Rs. lakhs)Lender/Source FY 03 FY 04

Loan Agreement with GRIDCO 0 0

IBRD Loan 2256 2766

Total 2256 2766

5. CAPITAL BASE

The Capital Base projected for FY04 is projected to be Rs38218lakhs.


5.1 ORIGINAL COST OF FIXED ASSETS

The Original Cost of Fixed Assets is projected at Rs. 48025 lakhs. The

Closing GFA (Gross Fixed Assets) for the previous years in as detailed

in the table below:

Table 23 Fixed assets

Rs. lakhs

Projection for FY 04 48025

Provisional FY 03 48025


5.2 ACCUMULATED DEPRECIATION

The Accumulated Depreciation projected for the Ensuing Year FY 04 is

Rs 20439 lakhs.

Table 24 Depreciation

Rs. Lakhs




5.3 ORIGINAL COST OF WORK IN PROGRESS

The Original Cost of Work in Progress projected for the Ensuing

Year FY 04 is Rs 30000 lakhs All Capital works being undertaken

by CESCO are mainly for system improvement. The expenses

under CWP are to be capitalised.

Table 25 Work in progress


Rs. Lakhs




CESCO is making a substantial investment in order to spruce up its

distribution system in order to supply quality power to its consumers

and is in the process of carrying out major System Improvement works

funded by the World Bank.

5.4 COMPULSORY INVESTMENT UNDER SCHEDULE VI

The amount of Compulsory Investments is Rs. 120 lakhs calculated at

0.25% of Gross Fixed Assets.

Table 26 Compulsory investment at the end of FY04

Rs. Lakhs



Projected for FY 02 120

5.5 RECEIPTS AGAINST CONSUMER CONTRIBUTION

The aggregated receipts against Consumer Contribution are projected

at Rs.29649 lakhs at year-end FY04.

Table 27 Receipts against consumer contribution

Rs. Lakhs


5.6 STORES

The licensee has taken stringent measures to reduce inventory. The

Commission in the Tariff Order of January 19, 2001 has stipulated 3

months of average stock. The stock is maintained at one-month

consumption. The Procurement-Stores-CWIP-Capitalisation process as

such is being short circuited recognising that Inventory is for Capital

Works. Stores for FY 04 is projected at Rs. 8010 lakhs.

Table 28 Stores


Rs. Lakhs




5.7 CASH AND BANK BALANCE

The Cash and Bank Balance projected for FY 04 is Rs. 6196lakhs.

Table 29 Cash and bank balance

Rs. Lakhs


5.8 LOANS AND BONDS

Loans and Bonds projected for FY04 is Rs 16274 lakhs. The non asset

creating loans has been excluded for the purpose of Capital base

amounting to Rs 5508 lakhs .The details are given in F3.

5.9 REASONABLE RETURNS

The Reasonable Return projected for FY 04 is Rs 6115 lakhs, the break-

up of which is given in the table below.

Table 30 Reasonable returns

Rs. Lakhs

Capital Base FY 04 38218

16% on Capital Base 6115

Reasonable Return 6115

5.10 REVENUE REQUIREMENTS

Based on the above analysis, the revenue requirement for CESCO for

the Ensuing Year, FY 04 is projected at Rs 211600 lakhs. To avoid a

sudden rate shock CESCO plans to defer collection of Rs.121410 Lakhs

with interest over the next three years and plans to recover 90190 lakhs

n the ensuing financial year.


6. TARIFF PROPOSAL

As stated in the rationale for this Application has the following

objectives:

The Revenue generation from the tariff effective from 1st April

2004 will be Rs. 90190 lakhs and will fall short of the Revenue

Requirement of FY-‘04 by Rs. 121410 lakhs.

In the Tariff Order of December 1999 the Commission had taken

steps towards “a uniform rate for all consumer categories using

electricity on the same voltage of supply”. This rationale has been

carried forward and used for Fixed Costs recovery as well.

1.1 FIXED COSTS RECOVERED FROM FIXED CHARGES

The Revenue requirement as derived in this application is Rs. 211600

lakhs. The Fixed costs component of this Revenue requirement is Rs.

40221 Lakhs computed in the Table below.

Table 31 Fixed Costs and their Recovery as Fixed charges in lakhs

Item Rs Lakhs

Demand Charge due to Gridco

15600

Employee 10918

A & G 3183

R & M 1862

Bad Debt 1650

Depreciation 1500

Interest 5508

Total Fixed Costs 40221

Recoverable as Fixed Charge 9331FC recovered as % of Total FC

23.19%

Going by the Tariff Order of November 1998 that “ 67% of the fixed

cost can be recovered through energy charges. Thus, 33% of fixed cost

is to be recovered through demand charge.” This Fixed Costs recovery

is from Demand Charge and Monthly Minimum Fixed Charges. The

Commission has recognised in the Tariff Order of December 1999 that


“ monthly minimum fixed charge is thus a combination of the demand

charge and customer charge payable by the consumers with contract

demand of less than 110 KVA”.

Clearly Demand charge is leviable as Monthly Minimum Fixed charge

or as Demand charge itself and whether consumers with connected

load of 110 KVA have meters to record maximum demand charge or

not, at least 33% of Fixed costs have to be recovered from Fixed

charges.

However as stated in the rationale for this application, the endeavour

is to propose a tariff that is “just and reasonable” and the same

philosophy has been adopted for proposing the Fixed charges also. The

Fixed charges proposed is only about 23% of the Total revenue

generation proposed and at Rs. 9331 Lakhs is Rs. 13267 Lakhs less

than the 33% of Fixed Costs that should be recovered as Fixed

Charges. A minimum of Rs. 9331 Lakhs therefore needs to be allowed

as Fixed Charges.

1.1.1 Demand Charges

The principle of “rationalisation of tariff” has been incorporated for

Fixed Charges also. The Demand charges proposed for all consumers

are Rs. 200 per KVA except for the following categories.

All Domestic

Commercial

Small Industry

Medium Industry

Irrigation

Street Lighting

Public Institution

Public Water Works<100KW

The Bulk Supply Domestic tariff is linked to the LT Domestic Tariff. The

HT Domestic consumers need to avail a lower Demand charge or

minimum fixed charge than the average LT Domestic tariff so that they


have an incentive to avail of Domestic tariff at HT. Since the LT

Domestic tariff cannot be rationalised in one go, the Bulk Supply

Domestic Demand charge consequently is pegged at Rs. 10 per KW.

Demand charge for HT Irrigation is proposed at the existing level of Rs.

30 per KVA since that is “just and reasonable” level for Irrigation. Also

the Minimum Fixed charge proposed for LT Irrigation is Rs. 20 for the

first kW and Rs 10 for the rest and Demand charge for HT Irrigation has

to be lower than this for consumers to have an incentive to avail power

at the higher voltage.

Consumers not having the facility to be billed on Maximum Demand

charge need to be billed at the Contract Demand only. Also for these

consumers the method of determining the Contract Demand as such is

a function of their connected load. Therefore logically the Fixed charge

for these consumers needs to be lower than the consumers those who

have the facility of a Demand charge payment linked to the Maximum

Demand. In keeping with this logic, the Minimum Fixed Charge of the

following categories is proposed to continue at the existing rate.

Street Lighting

Small Industry

Public Water Works < 100 kW

Public Institution

Medium Industry

1.1.2 Customer Service Charge

The tariff philosophy of rationalisation across voltage categories has

been adhered to for Customer Service charge. As stated in the Tariff

Order of December 1999, Customer Service charge is for the following

activities:

Cost of meter reading

Preparation of bills

Delivery of bills

Collection of revenue


Maintenance of customer accounts

Customer charge has been proposed at the existing rate for all

categories.

1.2 ENERGY CHARGES

As stated in the rationale to this application, the Commission’s

objective of “ bringing about a uniform rate for all consumer categories

using electricity on the same voltage of supply” can be adhered to till a

point when it does not drive industries like PIIs, whose major raw

material is power, to set up CPPs or alternatively not to set up

industries in the licensees area of supply. Therefore the tariff

rationalisation philosophy has been adhered to in principle though it

stops short of being counter productive. The rate difference between

the voltage of supply as The Commission has decided in the Tariff

order of December 1999 has also been adhered to. This is in

consonance with The Commission’s philosophy in the Tariff Paper that

states that “Efficiency criterion requires that tariff should be cost

based and without any cross-subsidisation”. In alignment with this

philosophy, efforts have been taken to reduce cross-subsidy in this

tariff proposal.

By this logic the tariff for different EHT consumers except for Power

Intensive Industries, Colony consumption and Emergency Supply to

CPPs is as follows.

GP- 300 paise per kWh

Large and Heavy Industries- 295 paise per kwh .

Railway Traction, PII and Mini Steel Plant- 290 paise per kwh . Colony

Consumption- 260 paise per kwh

No increase in demand charge, customer service charge, monthly

minimum fixed charges. Consumption between 50% to 60% of the load

factor by EHT and HT consumers shall be payable @ 220 paise per kwh

and 240 paise per kwh respectively and consumption in excess of 60%


by EHT and HT consumers shall be payable @ 190 paise per kwh and

210 paise/kwh.

Colony consumption is related to the Domestic tariff and has been

proposed at the average of Domestic tariff for the LT category, that is

350 paise per kWh at HT that is the average of the Domestic tariff at

HT and 10 paise less for EHT supply that is 340 paise.

Commercial tariff for consumption less than 100 units is proposed at

450 paise per Kwh.. The proposed tariff is 580 paise for all units

consumed more than 100 to 200 units and 600 paise per unit above

300 units.

Domestic tariff for consumption <=100 units is proposed at 200 paise

and 320 paise for consumption between 100 and up to 200 units.

Consumption above 200 units is proposed at 450 paise per unit. As is

apparent these slabs are subsidised already by the other categories

and a conscious attempt has been made to decrease the subsidy by

other categories to these Domestic slabs.

The licensee has experienced some problems in recovering arrears due

from previous periods. The licensee feels that by allowing incentive on

current payments the importance of liquidating arrears has taken a

back seat. In light of this the licensee places before the Commission a

proposal for allowing rebate on current amount only when the entire

bill (including arrears and current charges are paid in full).

The licensee has initiated several positive steps for redressal of

consumer grievances. All offices have been instructed to observe all

days as grievance redressal day between 10 a.m. to 2 p.m. Complaint

redressal is also done at the HQ on all days except Sunday. However

on many cases consumers are seen avoiding payments on frivolous

charges of wrong bills, which on subsequent verification is found to be

correct. As a result of this the licensee is constantly facing problems in

cash flows. Hence the licensee draws the attention of the Commission

towards the Provisions under Point 92 (2) of Chapter 9 0f the OERC-

Distribution 9 Conditions of Supply) Code 1998 wherein any bills


deferred for delayed payment (on account of disputes) attract a DPS of

2 % per month. The licensee humbly prays to the Commission to

approve a DPS of 2% per month for all consumers.

The licensee requests the Commission to allow it to incorporate the

disconnection notice in the Bill served on consumers for recovery of

Energy Charges. The bills will include the arrears and current charges

whereas the disconnection notice will be issued on past arrears. This

will compress the time cycles of separate Bill and Disconnection notice

distribution programmes and reduce overheads. A similar practice is

being followed by Department of Telephones, which serves a bill cum

disconnection notice and the licensee requests the Commission to

allow it to adopt the same practice.

The philosophy that should govern tariff setting is enshrined in the OER

Act and the Tariff order of December 1999 that is “bringing about a

uniform rate for all consumer categories using electricity on the same

voltage of supply which is a good measure of the cost of supply.”

Similarly for recovery of Fixed Costs from Fixed Charges the

Commission’s Tariff Order of November 1998 needs to be adhered to

rather than “comparable charges in other States”.

1.3 ENERGY CHARGE TO POWER INTENSIVE INDUSTRIES

The energy charge for a PII Unit consuming power at EHT is a major

factor for its competitiveness at the international market. Continuance

of such consumers, availing power from the grid, is not only essential

for the financial health of CESCO, they are equally important for the

subsidised categories of consumers like domestic, irrigation etc who

are being supplied power at a price lesser than the cost of supply.

Therefore in the overall interest of CESCO and the consumers it is

proposed to lower the tariff to 205 paise per unit for consumption till

40% of the load factor and 180 paise per unit for consumption above

40% load factor.

1.4 REBATE

Cesco proposes the continuance of the present rebate structure.


1.5 REVISION OF OTHER CHARGES

1.5.1 Increase in Reconnection Charges

Tariff should be used as a tool to achieve the objective of rewarding

the good consumers. Disconnection drives against non-paying

consumers are proposed so that these consumers do not burden the

paying consumer. To deter the consumers from non-payment and

hence disconnection the reconnection charge is proposed to be

increased as in the following Table.

Table 32 Proposed re-connection charges for FY 04

Connection Type ChargesSingle Phase Domestic Consumer

Rs. 60

Single Phase Other Consumer Rs. 100

3 Phase Line Rs. 200

HT & EHT Line Rs. 1000

1.5.2 Power Factor Penalty

Low power factor places the network under tremendous strain and may

result in higher R & M Costs. The Commission is requested to

reintroduce the PF penalty for Medium Industries and Bulk GP

consumers. This will encourage adherence to stipulated power factor

loads during operation thereby minimising the strain on the network. It

is, therefore, proposed to re-introduce power factor penalty for Medium

Industries the rates of, which should be the same as that existing in

the current Large Industry tariff.

7. PURCHASED POWER PRICE ADJUSTMENT CLAUSE FOR CESCO

7.1 BACKGROUND

The Conceptual Issues of Electricity Tariff in Orissa, envisages the

creation of a Fuel and Purchased Power Adjustment Clause (FPPAC). It

requires that an estimated base amount of fuel and purchase power

cost be included in the calculation of the utility’s tariffs. Any actual

costs above or below the base amount (that in CESCO’s case is the


amount of power purchase included in the calculation of its tariff) shall

be collected from or refunded to customers by means of a per kWh

charge. The philosophy for this type of clause as mentioned in the

Conceptual Issues is to insulate the utility from the risk of possible

changes in a type of cost over which the licensee has little control.

The letter and spirit of these statements of The Commission has been

adhered to while proposing the purchased power price adjustment

formula since the licensee bears the responsibility for initiating a

proposal as required by The Commission. There is little doubt that

purchased power in the case of CESCO is Bulk Supply power purchased

from GRIDCO. As mentioned above the objective is to “insulate the

utility from a type of cost over which licensee has little control”. Power

cost clearly is the product of the units of power purchased and the Bulk

Supply Tariff. The formula proposed does just that, insulates the utility

against variation of bulk supply tariff at the power purchase volume

approved by The Commission.

With the unbundling of the power sector it is but natural that different

companies will have a different tariff calendar. Therefore say if the

Bulk Supply Tariff comes into effect later than the Retail tariff for a

Distco then the Retail tariff should reflect the changed BST. Clearly the

existing formula is “fuel cost based” only and the Distco needs to be

insulated against BST as implied in the Conceptual Issues.

The proposed formula is not an automatic pass through. The

change in Retail Tariff would need The Commission’s approval.

Therefore a simple interest @ 16% per annum is applicable to

the delay between the new BST coming into effect and the

Adjustment (A) coming into force.


7.2 CESCO’S PROPOSED FORMULA

Therefore as argued above, the proposed formula only provides for a

change in BST that is obviously beyond the purview of the Distribution

company, to be transparently passed through to retail tariff after The

Commission’s approval.

The key features of this formula are:

There is no tinkering with the Losses approved by The Commission since the Power purchase base (E1) used for the computation is what is approved by The Commission in the tariff. The energy sale (Qs) is also as approved by The Commission in the tariff.

The SMD (D1) in KVA is as approved by The Commission in the tariff. Therefore any risk of a higher SMD is borne by the utility.

The pass through formula is secular in that the same increase (A) per unit applies to all category of consumers

In any case The Commission will approve every time there is a need to apply this feature on an application by the licensee. In case a normative period of 15 days is stipulated for the approval, then the interest component (1+r%Xm/12) can be done away with. This component (1+r%Xm/12) is only applicable for m>1 month.

There is no logic whatsoever for the pass through to operate within any band. Any increase in BST needs to be reflected in the Retail tariff and logically an interest is chargeable on any delay.

Adjustment rate per unit (A) becomes applicable from the day the new BST or fuel surcharge adjustment becomes applicable.


UNIT-VI

Grievance handling of OERC in connection with ARR & RTA.

Soon after the tariff application is filed, the licensee has to reply to

certain queries made by the commission on the RTA .Then the licensee

is ordered by the honorable commission is keep the application ready

for sale to the general public. The general public after going through

the application is requested to file their observations with the

commission by a specified date. The commission then scrutinizes the

observations/complains and selects the relevant observations for

hearings. A hearing date is finalized and communicated through press

release by the commission. The hearing took place at the

commission’s hearing hall. For the ARR-RTA filed for the year 2003-

2004 by CESCO the following parties filed their observations/complains

which are taken for hearing by the commission.

In response to the above notices, objections were received from

different quarters. The Commission received as many as 29 objections

out of which the following 25 objections were admitted for personal

hearing.

(1) Orissa Consumer’s Association, Biswanath Lane, Cuttack; (2) Mr.

R.C. Padhi, MIG, A/24, Brit Colony, Nayapally, Bhubaneswar; (3) National

Aluminium Company Ltd., (NALCO), Nayapally, Bhubaneswar; (4) Aditya

Aluminium Project, Sahid Nagar, Bhubaneswar; (5) South Eastern Railways,

Garden Reach, Kolkata; (6) Purvi Bharat Steels Ltd., Tangi, Cuttack; (7)

Shreeji Ispat Limited, Jagatpur Industrial Estate, Cuttack; (8) Bajarangbali

Alloys Private Limited, Choudewar, Cuttack; (9) Orissa Small Scale Industries

Association (OSSIA), Ajoy-Binoy Bhawan, Industrial Estate, Cuttack; (10)

Aditya Alloys Limited, Telengapentha, Cuttack; (11) Aditya Steel Industries

Limited, Telengapentha, Cuttack; (12) Coastal Orissa Steel Manufacturers’

Association (COSMA), Chauliaganj, Cuttack; (13) Magnum Fibres Pvt. Ltd.,

Mancheswar Industrial Estate, Bhubaneswar; (14) Confederation of India

Industry (CII), Forest Park, Bhubaneswar; (15) Association of Industrial


Entrepreneurs of Bhubaneswar (AIEBA), Mancheswar, Bhubaneswar; (16)

District Small Scale Industries Association, Industrial Estate, Cuttack; (17)

Satyam Castings Pvt. Ltd., Industrial Estate, Choudewar; 918) Federation of

Consumer Organisation, Orissa & Bhubaneswar Consumers’ Association,

Buddha Nagar, Bhubaneswar; (19) cuttack Municipal Corporation (CMC),

Cuttack (20) Tata Iron & Steel Company Ltd., (TISCO), Forest Park,

Bhubaneswar (21) D. Mangaraj, Nirakarpur, Dist. Khurda (22) Utkal Chamber

of Commerce & Industry (UCCI), Nayapally, Bhubaneswar (23) Orissa Young

Entreprenuers’ Association (OYEA), Industrial Estate, Cuttack (24) Chief

Engineer, Public Health Care (Urban) Bhubaneswar; (25) Mahanadi Coal Fields

Ltd, Burla, Sambalpur.

All the above objections were scrutinised, found valid and

admitted for hearing.

The intending objectors had exercised their right to inspect/peruse the

licensee’s application and to obtain the salient features of the

applications/full set of applications on payment of the prescribed fees from

the specified offices of the licensee.


UNIT-VII

DETERMINATION OF TARIFF

After hearing the objectors and CESCO and after considering all material facts

in the tariff application the commission has decided and finalized the

following order.

8.1 No changes in the existing tariff structure both in terms of rates and

stipulations have been envisaged by the Commission in the tariff order

2003-04 except the followings, mentioned in the paragraphs 8.2 to

8.20. The rates application to the various categories of consumer have

been detailed in the Annex-C.

8.2 Kutir Jyoti Consumers

8.2.1 Some objectors protested that a significant number of consumers

masquerading themselves as Kutir Jyoti consumers have got service

connection with load far in excess of the single point supply for lighting

envisaged under Kutir Jyoti programme. They also submitted that the

State Govt. should extend subsidy to compensate for the loss

sustained by the distribution company on account of supply of power

at a rate cheaper than the average cost of supply to this category of

consumers. As no subsidy has been made available by the state Govt.

despite protracted correspondence with Govt., the Commission,

therefore, directs that all Kutir Jyoti consumers should be invariably

metered. The tariff applicable in this case will be upto consumption of

30 units per month fixed at Rs.30.00. In case consumption exceeds 30

units per month, the entire consumption will be charged at the

prevailing domestic tariff.

8.2.2 Load factor billing

8.2.3 Some objectors took serious exception to the bills being continued for

months together on load factor basis in case of defective meters. Thus,

the authenticity of the past bills in such cases could hardly be


vouchsafed. It is, however, the statutory obligation on the part of the

licensee to replace meters. As stated in the previous orders, load factor

billing has been prescribed for a limited purpose/period, as and when

the meter remains defective/or the consumer goes without meter to

serve as a means to have the meter installed by consumers. Further

CESCO in its reply to queries raised by the Commission relating to tariff

for 2003-04 has committed to complete all feeder metering and LV

side of Transformers metering by 31.3.2004 and consumer end

metering by 31.12.2004. In view of the aggressive metering activities

undertaken by CESCO, the Commission considers that billing on the

basis of load factor will be dispensed with from 1st April, 2004. Many

objectors pleaded that billing based on load factor should not be

allowed. The Commission is also wary of load factor billing to

consumers for months together. It is licensee’s obligation to ensure

that each consumer gets supply only though correct meters. Load

factor billing was allowed under para 60 of OERC Distribution (Conduct

of Supply) Code, 1998 for a limited purpose/time but the licensee has

systematically abused the regulation on some pretext or other.

8.2.4 The commission, therefore, directs that the load factor billing should

continue as per the provision in the existing tariff for the year 2003-04

and be withdrawn from 1st April, 2004, subject to amendment of the

OERC Distribution (Condition of Supply) code, 1998, to that extent. All

billing will be based on actual meter reading showing actual

consumption of consumers. In case of defective meters the provisions

of Indian Electricity Act, 1910, Section 26 and Regulation 58, 59, and

60 of OERC Distribution (Condition of Supply) Code, 1998 will apply.

Further, the licensee is directed to complete 100% consumer metering

by 31st March, 2004 and feeder metering by 31st October, 2003.

8.3 Incentive for maintaining high power factor

8.3.1 For the first time, the Commission in its tariff order dtd.30.12.99

introduced an incentive to encourage improvement in power factor

above 90%. Subsequently, the limit was raised to 97% in the RST order

dtd.19.01.2001. CESCO estimates that the rebate alone on this


account to HT/EHT consumers will be of the order of rs.3.84 crore

during the FY 2003-04 with the existing tariff.

8.3.2 Some of the objectors pleaded for restoring incentive for improvement

in power factor from 90% and above and penalty at the same rate for

low power factor.

8.3.3 Some objectors opined that for the health of electrical machinery, it is

risky to maintain power factor between 97% because there is every

chance of spurt in voltage when all on a sudden some load gets thrown

off from the circuit.

8.3.4 It should be kept in view that the industries for better protection of

their installation should follow prudent operational practice installing

protective devices, so as to isolate the equipment during abnormal

transient condition arising out of sudden load throw off or tripping of

feeders.

8.3.5 Further, the KVA demand of the industry decreases as the power factor

(PF) improves, thereby benefiting the consumer on account on demand

charge.

8.3.6 Similar provision of power factor incentive/rebate has been

recommended by other State Regulatory Commission such as Gujurat

Electricity Regulatory Commission, U.P. Electricity Regulatory

Commission, Mahararashtra Electricity Regulatory commission where

incentive is allowed for maintaining PF above 95%. Hence, the

Commission does not consider it necessary to make change in the

existing provision with regard to power factor incentive and penalty.

8.4 Incentive for prompt payment

8.4.1 Some of the objectors pointed out that 48 hours of rebate period is

very short and consumers may not be able to avail the rebate due to

paucity of time. They suggested that the rebate period should be

extended to 15 days. It is expected that to avail such heavy amount of

rebate, consumers should put extra efforts and make payment of bills

in time.


8.4.2 As per earlier order of the Commission, certain categories of

consumers are entitled to a rebate of 1% of the amount of the monthly

bill (excluding arrears and electricity duty) if payment is made within

48 hours of the presentation of the bill. Considering the difficulties of

the consumers, the Commission feels that three days time for availing

rebate is reasonable and allows that the consumers are entitled to get

rebate of 1% if the bills are paid within 3 days from the date of

presentation of the bill. The Commission decides that as a measure of

incentive for prompt payment there will be a rebate @1% for payments

made within 3 days from the date of presentation of the bill. This

incentive will be application to all the categories of consumers

excepting Domestic, Commercial, Irrigation and Small Industry, for

whom, a rebate of 10 paise/unit shall be allowed on energy charges fi

the payment of the bill (excluding arrears and electricity duty) is made

by the due date indicated on the bill or within a period of 7 (seven)

days from the date of receiving the bill.

8.4.3 Shir R.C. Padhi suggested that a DPS may also be levied on domestic

and commercial consumer. The Commission appreciates the

suggestion and orders that a DPS of 2% will also be levied on domestic,

commercial, irrigation and small industries categories of consumer if

payment is not made within the due date.

8.5 Industrial Colony Consumption

8.5.1 The Commission in its tariff order dated 19.01.2001 directed that the

units consumed for the industrial colony should be separately metered

and the total consumption should be deducted from the main meter

reading and billed for supply of HT and EHT. The energy consumed in

industrial colony in excess of 10% of the total consumption shall be

billed at the rate of Energy Charge applicable to the appropriate class

of industry. Some objectors like MCL pleaded that the consumer whose

load factor is less than 50% would only enjoy the benefit and the

consumer whose load factor is more than 50% would lose heavily. As

such, the consumer would have been benefited more under the

incentive scheme for higher consumption had there been no separate


tariff for colony consumption. Since the purpose of incentive scheme is

to encourage for higher consumption by the EHT & HT consumers, the

Commission after reviewing the scheme directs that for the purpose of

determining the incentive amount, the energy consumed in Industrial

colony limiting to maximum of 10% should be included in the first slab

of 50% and billed for supply at HT and EHT. The energy consumed in

industrial colony in excess of 10% of the total consumption shall be

billed at the rate of Energy Charge applicable to the appropriate class

of industry.

8.6 Railway Traction Tariff

8.6.1 The question of providing a reasonable tariff for Railway Traction

raised by the S.E. Railway was also considered by OERC. The

Commission would like to clarify that the railway traction tariff in Orissa

is at par with that of HT or EHT consumers depending upon the voltage

of supply as the tariff structure has been totally linked tot he voltage of

supply. Railway traction tariff is lower in Orissa. Therefore, railways

should have no grouse on this account.

8.6.2 The railways had also raised the issue of a single part tariff which is

today applicable only to very large industries with a guaranteed off-

take to which category the railways does not belong.

8.6.3 The South Eastern Railway’s further concern about recording and

charging of maximum demand for individual supply points as per the

existing system turned out to be totally unrealistic as the railways were

moving loads for all substations along the track. It may be mentioned

that the railway traction supply is from the EHT network of the GRIDCO

and the billing is done by the various supply companies to the railways

in their area of license. The Commission in its tariff order dated

19.4.2002 opined that the issue should be mutually discussed by the

railways with the four distribution companies and their views in the

matter may be placed before the Commission for taking a holistic view.

In this connection S.E. Railway had discussion with the Distribution

Companies but no meaningful agreement emerged out of the

discussion. The Commission observes that since separate agreements


are executed for individual traction loads, it will not be possible to

adopt SMD for billing on the basis of simultaneous maximum demand

recorded in continguous substations.

8.6.4 The railways also pleaded that the integration period of 30 minutes for

measurement of maximum demand in respect of railway traction has

been changed to 15 minutes. The railways requested that the OERC

should consider restoration of integration period 30 minutes as per the

earlier method which is also in conformity with the Clause No. 2(8) of

Electricity Supply Act, 1948.

8.6.5 The Commission deliberated on this issue and observed that 30

minutes integration period for all categories has been provided in the

Regulation of ASEB, Ahmedabad Electricity Company, MPSEB, HSEB,

DVP, Gujurat, Maharashtra, TamilNadu, Fifteen minute integration

period has been provided by UPERC, APERC for loads more than 4000

KVA, and for railway traction by WBSEB. Some SEBs have introduced

one hour integration period.

8.6.6 Further, with implementation of ABT in Eastern Region with effect from

1st April,2003 which calls for recording of Maximum Demand with

fifteen minutes integration period it will not be possible to change over

to integration period of thirty minutes for Railways. The Commission

further decides to adopt fifteen minutes integration period in near

future for all the categories of industrial consumers. This will require

amendment of the supply regulation OERC Distribution (Condition of

Supply) Code, 1998 and installation of appropriate metering system in

consumers’ premises. Till such time, the present arrangement shall

continue.

8.7 Construction Power

8.7.1 Objection was raised by M/s. Aditya Aluminium that the

industries under construction may be classified separately and no

demand charge should be levied on construction power. There seems

to have no logic behind the objection as the licensee is to

arrange/book, the quantum of power as per the contract demand and


pay fixed charge against the said quantum of power which it has to

recover from the consumer.

8.8 Penalty for over drawal of power above the contract demand

8.8.1 The Commission emphasises that with the implementation of ABT in

the Eastern Region the problem of Over Drawal has automatically been

addressed, as the principal aim of ABT is to enforce grid discipline with

an objection for consistence in frequency and efficient use of available

energy resources.

8.8.2 The special feature of the above commercial mechanism is UI Charge.

Under this scheme, any deviation of drawal from the scheduled shall

be liable to UI charges Payable/ Receivable to the utility concerned.

This UI is to be worked out for each 15 minutes blocks period and thre

shall be 96 Blocks period in each day of operation. The charges for

unscheduled drawal shall be based on average frequency of the

relevant block period. The UI rate varies with maximum 420 paise/KWH

at 49.0HZ and minimum of 0 paise/KWH at 50.5HZ. The UI Charge at

different frequency is linear in the step size of 0.02 HZ. During under

frequency condition overdrawal beyond schedule will attract

disincentive in the form of a higher charge which can go up to 420 p/u

at a 49 HZ and incentive for underdrawal will be available during low

frequency condition. Vice versa is applicable during high frequency

condition. This being the principle during ABT REGIME, NO SEPARATE

CHARGE NEEDS TO BE SPECIFIED FOR OVERDRAWAL OR

UNDERDRAWAL. During ABT operation, a DISTCOs overdrawing during

under frequency condition will be liable to pay UI charges as per rule.

There may be a situation when one DISTCOs is overdrawing and

another is underdrawing so that net effect of GRIDCO drawal is

nullified. In that case cost recovery f UI charges for overdrawing

DISTCOs will not be appropriated by GRIDCO and will be kept in a

separate account. Such cases need to be referred to Commission for

direction on appropriation of the funds. The DISTCOs in turn need to

bring to the notice of the consumers particularly industrial one of EHT

and HT category about the impact of the overdrawl during under


frequency condition and have a back to back arrangement for passing

on the extra burden due to UI charges. The meters in the consumer

premises should be capable to record the 15 minutes interval load

drawal with memory retention of at least 60 days.

8.8.3 ABT is a new concept with three elements of charges. In initial yeas

they might be some problems. The utilities need to remain alert to

avoid financial burden arising out of overdrawl during under frequency

regime.

8.8.4 The UI Charge is payable when the utility does not support the system

and receivable when the Utility support the system to maintain the

prescribed frequency. In other words the UI Charge payble/receivable

depending upon who has deviated from the schedule and also subject

to the Grid condition at that point of time. This element, which is

expected to bring discipline in the system takes care of the over

drawal by licensees.

8.8.5 In view of implementation of ABT in Eastern Region, the Commission

decides that there would be penalty on overdrawl as stipulated in the

para above.

8.9 Observation on incentive for higher consumption

8.9.1 Some objectors pleaded that load factor as per standard nomenclature

should be based on Maximum Demand without having any relation

with Contract Demand.

8.9.2 The said issue has been clearly dealt in the OERC retail Supply Tariff

order dtd.19.04.2002 and the reason for adopting the term

“consumption ratio” in place of “ load factor” and “higher of contract

demand or maximum demand” has been explained in the following

paragraphs.

8.9.3 For the purpose of calculation of incentive energy, instead of load

factor the term consumption ratio i.e. the total number of units

consumed during a given period to the total number of units that

would have been consumed had the contract demand or the maximum


demand, whichever is higher was maintained throughout the same

period has been used.

8.9.4 It may be noted that the incentive tariff for HT/EHT category of

consumers was introduced in the OERC RST order dtd.30.12.99 where

incentive energy was considered above the load factor of 50% f contrct

demand. Further, as mentioned in the OERC RST order dtd.19.01.2001

“Some objectors objected to recording of load factor during FY 1999-00

in excess of 100% in the filing made by the licensee on the ground that

it had an element of absurdity. As prescribed in OERC Condition of

Supply Regulation, 1998 load factor of a consumer under no

circumstances can exceed 100%”. Therefore, consumption ratio was

adopted in place of load factor for determination of incentive energy.

8.9.5 Some objectors pleaded that for the purpose of calculation of incentive

slab, energy slab calculation should be considered on Peak hour

maximum demand only and not on the off-peak maximum demand. As

directed by the Commission in its tariff order dtd.19.4.2002, for the

purpose of calculation of maximum demand, there should not be any

differentiation between peak and off peak hours. As such, the

Commission is not inclined to bring about any charge in the existing

provision excepting deletion of the clause – “Incentive shall be

available to those consumers who will not reduce their contract

demand during the next three financial years”.

8.10 Meter Rent

8.10.1Some objectors submitted that meter rent and the cost of

metering/lease should be maintained separately from the general

revenue and expenses of the licensee. The Commission examined the

issue of rent chargeable for the meters supplied by the licensee.

Section 26 of the Indian Electricity Act, 1910 reads as follows:

8.10.2“In the absence of an agreement to the contrary, the amount of energy

supplied to a consumer or the electricity quantity contains in the

supply shall be ascertained by means of correct meters and the


licensee shall if required by the consumer cause the consumer to be

supplied with such meter.

8.10.3Provided that the licensee may require the consumer to give him

security for the price of the meter and enter into an agreement for the

hire thereof unless the consumer elect to purchase the meter.”

8.10.4Hence, the consumer has to be allowed to exercise first option to

purchase an appropriate meter. If the consumer wants to take the

meter on hire, the licensee can charge meter rent. The licence is

directed to allow the consumer to own the meter by paying its

legitimate cost if he/she do desires, in one installment or can pay

meter rent till the landed cost is recovered. In such a case, if the meter

becomes defective or lost, the case should be dealt with in accordance

with provisions under OERC Condition of Supply Regulation.

8.10.5In regard to calculation of meter rent, the Commission examined the

estimates submitted by the licensee. The cost of the Electro-magnetic

meters including TP box and installation charges comes to around

rs.1050/-. The life of the meter has been estimated as 10 years with a

discount rate of 12% per annum. The amount recoverable on account

of Landed Cost of meter including interest will come to rs.15.00

approximately per month. The Commission is convinced that the meter

rent charged by the licensee is reasonable. Any consumer who does

not want to pay the meter rent cane exercise his/her first option to

purchase the appropriate meter.

8.11 Rural Electrification

8.11.1The Commission is aware of the fact that the State Government is

planning to take up Rural Electrification work in a massive scale in

consonance with the national agenda to achieve 100% Rural

Electrification by 2007 and providing electricity to all households by

2012. While extending power facilities to every nook and corner of the

State necessary precautionary measures have to be taken to avoid

further loss to the power system. In fact, extension of liens would


mean additional technical loss apart from commercial loss which can

be prevented by taking the following measures as detailed below:-

8.11.2Off grid supply/distributed generation should be encouraged in remote

villages situated away from GRID.

8.11.3In case the electrification is done by extending the grid supply then the

extension should be on High Voltage Distribution System (HVDS) by

extending the HT lines up to the load centre of the village. Then LT

distribution can be done by installing small capacity transforemrs like

10 KVA, 16 KVA, 25 KVA to cater to the needs of the villagers. Service

connections can be extended directly from the LV side of the

transformers to the consumer’s premises. If deemed necessary, Aerial

Bunched Conductors (ABC) c an be used for extending LT supply to

distant points which cannot be reached through normal service

connection wires.

8.11.4Village Committee may be set up to look after load development, load

management, billing and collection in the village.

8.11.5On the LV side of the transformer, a meter is to be installed which will

record the total energy supplied by the transformer. The village

committee can be billed based on this meter reading on a suitable

tariff to be approved by OERC depending on the mix of load in the

village.

8.11.6The extension of lines in the village should be done only after firm

commitment from the consumers by way of giving advance security

deposit/paying for the cost of extension etc.

8.11.7The Commission is of the view that aforesaid precautionary measures

will reduce commercial loss substantially. The Commission, therefore,

directs DISTCOs to adopt measures mentioned above while taking up

rural electrification.

8.11.8The capital investment required for rural electrification will be fully

funded by the State Govt. through various schemes such as APDRP,

PMGY, MPLAD, MLALAD etc. as 100% capital subsidy to DISTCOs.


8.12 Tariff for Emergency Supply to CPP at HT

8.12.1In the existing Tariff Schedule there is no provision for separate tariff in

respect of Emergency Supply to CPP at HT category. NESCO in its tariff

proposal has indicated consumption of 2.84 MU against Emergency

Supply to CPP at HT and as such, there are some consumers who avail

power supply as Emergency Supply to CPP at HT.

8.12.2In view of the above the Commission decides a tariff at a rate of 400

paise/unit as energy charge and Rs.250 per month as Customer

Service Charge for Emergency Supply to CPP at HT.

8.13 Emergency power supply to CPPs/Generating stations

8.13.1Some of the industries having captive power plants requested the

Commission to raise the present level of emergency power (25% of the

highest unit) to 75% to 100% of the capacity of power plant. The

Commission examined their request and in principle, agreed to raise

the above level to 100% of the largest unit in the CPP or Generating

Stations, subject to amendment of the provisions under OERC

Distribution (Condition of Supply) Code, 1998, with the following

stipulations.

8.13.2“Such industries owning CPP/Generating Stations have to enter into an

agreement with DISTCOs subject to technical feasibility and availability

of required quantity of power/energy in the system. For them, a flat

rate of 420 paise/kwh at EHT and 440 paise/kwh at HT would apply

while for others who draw only 25% of capacity of highest unit would

pay @ 380 paise/kwh and 400 paise/kwh at EHT and HT respectively.

In case of over drawl beyond 25% of the rated capacity they will have

to pay @ 420 paise/kwh and 440 paise/kwh at EHT and HT respectively

for the period of over drawl.”

8.14 Tariff for Ferro Alloys Industries

8.14.1The Ferro Alloys Industries of the State filed a petition before the

Commission jointly and also severally for a composite tariff for their

industries at a rate of 182 P/KWH against an off take guarantee of 70%

of their contract demand. They have also pleaded that their plant


would operate at very high load factor resulting in additional annual

consumption thereby ensuring higher level of cross subsidy and easing

the burden of surplus power of that state. They have further pleaded

that they have a substantial presence in the industrial scene of Orissa,

they are power intensive and export oriented, that the high cost of

production is making them un-competitive in the international market

and that a special, concesional rate of tariff would make the industries

viable, increase their production and thereby enhance the revenue

flow to distribution companies. They have further stated that the

APERC has allowed a concesional tariff for the Ferro Alloys units

considering their problem of viability.

8.14.2The Government of Orissa in their letter No.1585 dtd.14.2.2003 has

recommended the proposal of these industries for considering of the

Commission. However, the govt. has also clarified that this

endorsement is not a policy directive under section 12(3) of OER Act,

1995 which means Govt. would not be able to provide subsidy as

required under the above section.

8.14.3CESCO has opposed the composite tariff of 182 paise/kwh proposed by

the Ferro Alloys Industries and has prayed that the State Govt. should

provide necessary subsidy to make good the loss on account of the

cheaper tariff.

8.14.4During public hearing of Tariff proceedings, vehement opposition came

from some of the objectors against the proposal of a concessional tariff

for Ferro Alloys Industries. They apprehended that since Government

of Orissa is not forthcoming with any subsidy, a concessional tariff for

these industries is likely to adversely affect the subsidized category of

consumers & lifeline rate. It is understood that, Orissa Consumers'’

Association have challenged the proposed special tariff to 182 p/u in

the Hon'ble High Court of Orissa.

8.14.5The Commission has given a careful consideration to this proposal

because of its wider ramifications in terms of collection level & cross

subsidy level of DISTCOs which need to be reviewed for its impact and

views as under:-


8.14.5.1 All the Ferro Alloys Industries are now under Power Intensive

category and a graded tariff is available to all the categories of

consumers under OERC schedule based on load factor under which

they operate. Further, the DISTCOs have entered into special

agreement with the Ferro Alloys Industries and extended a

concessional tariff.

8.14.5.2 The AP case cited by the Ferro Alloys Units is not comparable to this

case because a rate of 212 P/KWH for the Ferro Alloys Units

approved by APERC was recommended tot he Commission by AP

Transco. Secondly, the Govt. of A.P. for the year 2003-04 provided a

subsidy of rs.1513.49 cs. To be made available to the distribution

companies to make good loss of revenue from the subsidies

category like LT doemstic, agriculture etc. The Govt. of Andhra

Pradesh has furhter assued the Commission that this amount would

be available to DISTCOs in 12 equal monthly installments.

8.14.5.3 Further an exercise by Commission staff reveals that collection

level & cross subsidy level DISTCOs would be adversely affected in

case consumption as envisaged in their proposal do not materalise.

8.14.6. In view of the facts stated above, Commission feels it

appropriate to advise DISTCOs concerned to review this proposal

once again and enter into mutually acceptable agreement, if

deemed necessary and put up the same before the Commission

for consideration, in accordance with Regulation 81 of OERC

Distribution Code, 1998.

8.15. Re-connection Charge

8.15.1The ate of reconnection charge should be as below:

Single Phase Domestic Consumer - Rs. 50/-

Single Phase other consumer - Rs.100/-

3-phase line - Rs.200/-

HT &EHT line - Rs.1000/-


8.16 The Commission is aware of the gaps in the overall computation of

the realization from tariffs and the consequent Clear Profit

computations among the four distribution licensees. The

Commission expects to use the plans of the four distribution

licensees as well as GRICO, to rationalize these differences in its

next tariff judgment for FY 2004-05. In this manner, the Commission

hereby deviates from the provisions of the Sixth Schedule of the ES

Act, 1948.

8.17 Finally, the Commission orders as follows with reference to the

prayers f the applicant. The Commission does not approve the

Revenue Requirement for the FY 2003-04.Retail supply as proposed

by CESCO for 2003-04 and rejects the Tariff revision proposal.

8.18. No change in the existing tariff structure both in terms of rates

and stipulation have been envisaged by the Commission in the

tariff order 2003-04 except those mentioned in the paragraph

8.2. to 8.20. Th rates applicable to the various categories of

consumer have been detailed in the Annex-C.

8.19. The Commission has approved GRIDCO’s revenue requirement

for 2003-04 at Rs.2045.00 crore (applying correctives) which

GRIDCO is allowed to recover at an approved tariff in

accordance with Deptt. of Energy, Govt. of Orissa Notification

No.1068/E, dtd.29.01.2003 and Parekh Committee

recommendations duly accepted by Govt. of India. In case Govt.

of Orissa does not accept the Pareksh Committee

recommendation as advised by the Commission, the revenue

requirement of GRIDCO for FY 2003-04 would increase by

Rs.94.10 crs. and thereby BST would rise by 7.81 p/u over a

period of 12 months, with an all Orissa average RST rise of 11.45

p/u, as per the tariff schedule given in Annex (1) w.e.f.

1.11.2003. It is made clear that the tariff hereby made effective

from 1.11.2003 shall not be construed as an amendment of this

tariff order and there shall be no fresh proceeding u/s 26 (6) of

the OERC Act. However, in the event of such non-acceptance by


the State Govt. on or before 22.10.2003, tariff as per (Annex C-

1) shall be published for giving effect there to after 7 days from

the date of publications. The amount left un-recovered due to

shorter tenure of recovery or partial acceptance of the Pareksh

Committee recommendation would be carried forward to 2004-

05 for adjustment.

In line with the Commission order on its LTTS, the Commission expects

the utilities to file their aggregate revenue requirements for the period

from 1st April, 2004 to 31st March, 2007 i.e. for the Financial Year 2004-

05, FY 2005-06 and FY 2006-07 by December, 2003 in order to enable

the first control period is from 1st April, 2003 to 31st March, 2007

covering four financial year (FY 2003-04, 2004-05, 2005-06 & 2006-

07), the Commission decides that the first year (i.e. FY 2003-04) will be

treated as the transaction period, during which LTTS will be introduced.

The Commission directs the licensee to implement the retail supply

tariff as determined by the commission in this order to become

effective after expiry of seven days of the publication under section

2(5) of the OER Act, 1995.Pursuant to order dtd.14.3.2003 of the

Hon’ble High Court of Orissa, passed in Misc. Case No. 414/2003 and

580/2003 arising out of OJC No.6751 of 2004, the order is not being

notified to CESCO in terms of section 26(6) but is submitted to the

Hon’’ble High Court of Orissa in sealed cover. The same shall not be

given effect to without leave of the Hon’ble High Court of Orissa.


UNIT-IX

CESCO AT A GLANCE FROM 1999-2004.

Particulars 1999-00 2000-01 2001-02 2002-03 2003-04

INPUT (MU) 3,594.68

4,028.20

4,186.82

4,055.79

3,899.57

BILLING (MU) 1,990.24

2,218.53

2,143.00

2,311.00

2,348.00

BILLING % 55% 55% 51% 57% 60%

T& D LOSS % 45% 45% 49% 43% 40%

AT &C Loss 62% 59% 57% 55% 51%

BST Bill (RS Crore) 453.63

506.91

574.81

531.17

518.92

BILLING (RSCrore) 493.36

584.38

638.15

666.92

691.63

Billing % to BST Bill 109% 115% 111% 126% 133%

COLLECTION (Rs Crore) 335.85

437.89

453.32

526.29

561.44

COLECTION% to Billing 68% 75% 71% 79% 81%

LT Billing (Rs Crore) 277.30

358.58

358.58

371.46

392.40

LT Collection (RS Crore)

128.44

203.79

203.80

237.63

284.18

LT Collection % to Billing 46% 57% 57% 64% 72%

HT Billing (Rs Crore) 120.39

161.82

161.80

144.39

150.16

HT Collection (RS Crore)

111.07

141.92

141.92

136.72

137.74

HT Collection % to Billing 92% 88% 88% 95% 92%

EHT Billing (Rs Crore)


95.66 117.75 117.74 151.06 149.07 EHT Collection (RS Crore)

96.35

107.62

107.61

151.95

139.53

EHT Collection % to Billing 101% 91% 91% 101% 94%Payment of GRIDCO Dues 376.21 372.62 440.9

441.28

UNIT-X

CONCLUSION

Though the exercise of filling ARR & RTA is a mandatory exercise

aimed at increasing tariff, it often end-up with just as an annual

exercise. Intervention of Judiciary has stalled the main objective of

tariff application. Of course there are many pros and cons of this

system. Basically in a poor state like Orissa it becomes increasingly

difficult on part of the general public to burden the charge of electricity

dues. People’s consciousness towards their duties of paying and lack of

willingness to pay electricity dues add to the woe. At the same time

with the increase in cost of operation and poor collection levels, the

already ailing distribution utilities find it impossible to survive despite

all effort. In this critical juncture it is the need of the hour to find out a

way that will at least address the basic problem of survival, both for

the company and the consumers. Privatization is not certainly the only

solution. But it is certainly a step foreword in the direction of bringing

professionalism to the system which is dominated by illiterate and

semi qualified employees.


RETAIL TARIFF HIKE OVER THE YEARS

1991 Base

Year

1996 17.00% 2003 NIL

1992 29.42% 1997 10.66% 2004 NIL

1993 28.58% 1998 9.3%

1994 15.73% 2000 4.00%

1995 17.47% 2001 10.20%

SALIENT POINTS OF ELECTRICITY TARRIFF 2003-04.

Retail Supply Tariff- (RST)-FOR CESCO.

Principle of Long Term Tariff Strategy has been adopted with initial

control period of 4 years i.e. from FY 2003-04 to FY 2006-07, treating

FY 2003-04 as the transition period. This means that for the said

control period, principles of tariff- setting shall remain unaltered. But

tariff-setting can be done as per S. 26 of OER Act. A separate order in

this behalf has been passed by the Commission on 18.06.2003 and

filed with the tariff orders before the Hon’ble Court.

Aggregate Technical and Commercial (AT&C) loss has been prescribed

as the performance parameter combining distribution loss and

commercial efficiency. This is a concept introduced for the first time in

Orissa for the reason that true measure of the loss should comprehend

technical and all forms of commercial losses due to want of billing

efficiency, collection efficiency, theft etc. This concept stresses cash

flow and liquidity of the licensees.

Uniform RST has been adopted for all consumers throughout the State.


No change in Retail Supply Tariff, which has remained constant

since 1st February 2001. In other words, there has been decrease in

tariff in real terms, if inflation is factored into the calculation. The Retail

Supply Tariff remains constant subject to State Govt’s acceptance of

Correctives applied by OERC, based on Parekh Committee

recommendations, otherwise the all Orissa average Retail

Supply Tariff will rise by 11.45 p/u which will be reflected only

in 1st two slabs of Domestic Tariff as shown in Annex (C-1).

The 2003-04 Tariff Order for RST envisages some changes as detailed below:-

All Kutir Jyoti consumers to be provided with metered supply of

electricity.

In case the consumption in respect of Kutir Jyoti consumers exceeds 30

units per month, the entire consumption shall be charged at the

prevailing domestic tariff.

Load factor billing to be withdrawn from 1st April 2004 subject to

amendment of the OERC Distribution Code, thereby permitting

billing based on actual reading through metered supply.

Distribution licensees have been directed to complete 100% consumer

metering by 31st March 2004 and feeder metering by 31st October

2003.

Rebate @1% allowed to all the categories of consumer excepting

Domestic, Commercial, Irrigation and Small Scale Industry for

payment made within 3 days from the date of presentation of the

bill. For such excepted categories (i.e. Domestic etc.) a rebate @ 10

paise per unit shall be allowed if payment is made by the due date

or within 7 days from receipt pf the bill.


Detailed payment Surcharge (DPS) @ 2% will be levied on domestic,

commercial, irrigation and small industries categories of

consumers, if payment is not made within the due date.

The rate applicable to energy consumed in industrial colony is to be

limited to 10% out of the first slab of 50%, with the result that

industrial consumer gets the benefit of a lower tariff towards colony

consumption.

Penalty/Incentive on overdraw will be applicable in accordance with the

stipulation in ABT. The technical requirement is that during high

frequency, the load (consumption) should be increased and vice

versa in order to keep the system stable.

Consumer can own the meter by paying its legitimate cost, if he/she so

desires, in one installment or can pay meter rent till the landed cost

is recovered.

Introducing tariff for emergency supply to CPPs at HT @400 paise/unit

as energy charges without any demand charge, in case they restrict

their drawal to 25% of the unit having the highest rates capacity.

Introducing tariff for emergency supply to CPPs/Generating Stations –

Flat rate tariff for industries owning CPP/Generating Stations, @ 420

paise/unit at EHT and 440 paise/unit at HT.

Reconnection charges Rs. 50, Rs. 100, Rs. 200 and Rs. 1000 for single

phase domestic consumers, single phase consumers, 3 phase line

and EHT line respectively.

project 2004

Documents

power system

power shortages

unitv unit

power cuts

distribution td losses

electricity departments

consumption of electricity

theft of electricity