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May 2007 Final Report

Analysis and compilation of tariff orders

Ministry of Power, Government of India

Prepared for

Project Report No 2006 RP23 www.teriin.org The Energy and Resources Institute

TERI Report No. 2006RP23

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TERI Report No. 2006RP23

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TERI Report No. 2006RP23

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TERI Report No. 2006RP23

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TERI Report No. 2006RP23

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TERI Report No. 2006RP23

!( ) !$ ) !$ 5 !$ !$ )5 . !. ( ! 5 ! !F / !F ) & ) 2 F ) 5!) C ) C ) C C) C)) CH) CH CE D D C D D. D D $ D D( D ($ )H

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TERI Report No. 2006RP23

D D

) ! 0

D= D D= D D 2 2 2 2 2 2 2 2 2 F F ! ) ) $ K $ = ! = $ ) C 0 D 5 A C /

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TERI Report No. 2006RP23

5 5 .

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= . = $ .

5 $ . 5F ( 2 !. )H( (/) (/( ()! ( ! ( )

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/ ! ) ) ) 5 5 5

TERI Report No. 2006RP23

(@ (A (E / !$ 5 !) $ $ )H C 2$ ) >) $ 5) $ ) 5!) $ ) $ . F F HG ( H H)C H )C H $ )) $ C $ C) $)5 D $ H D [email protected] $ 5)) . $ 5C $ 5 $ E (D ) !

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! ) . 5

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C =

) )

5 H @ .

E %

TERI Report No. 2006RP23

$ ( $ $ $) $ $ )5 $ $ C) $ $. $ $) $ )@5 $$ . $A $ A $ AA G ( / ) 5 . )H D F DE (. ) H $ 2 $ H $ . . A . 5$ G .) . / ./ .! . ); <

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5 )

$ =

/ ! ) ; <

TERI Report No. 2006RP23

. . 2$ . 2 .$ . 5$ .. .$ . . .K ) .A . . F G !

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TERI Report No. 2006RP23

F $ . . A/ )

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TERI Report No. 2006RP23

Table of contents

INTRODUCTION .............................................................................................................................................................. 1 BACKGROUND ................................................................................................................................................................ 1 SCOPE OF WORK ............................................................................................................................................................ 3 METHODOLOGY ............................................................................................................................................................. 4 PARAMETERS STUDIED ................................................................................................................................................... 5 DATA CONSTRAINTS FACED ............................................................................................................................................. 8 C H AP TE R 1 KEY FINDINGS ...................................................................................................................................... 10 INTRODUCTION............................................................................................................................................................. 10 FORM OF REGULATION.................................................................................................................................................. 10 PROCESS OF REGULATION ............................................................................................................................................ 11 Status of reform.................................................................................................................................................... 11 Public participation and timeliness of orders ........................................................................................................ 12 Consumer Grievance Redressal .......................................................................................................................... 14 Anti-theft measures .............................................................................................................................................. 17 Compliance of directions issued by SERCs ......................................................................................................... 19 Studies undertaken............................................................................................................................................... 20 Information available in public domain ................................................................................................................. 21 Status of important regulations issued ................................................................................................................. 22 Staffing ................................................................................................................................................................. 23 IMPACT OF REGULATION ............................................................................................................................................... 26 Consumption and access ..................................................................................................................................... 26 Rural electrification ............................................................................................................................................... 29 Status of franchisee.............................................................................................................................................. 29 Status of metering ................................................................................................................................................ 30 T&D losses, collection efficiency and AT&C losses ............................................................................................. 31 Power Purchase Cost........................................................................................................................................... 33 Employee Costs (EC)........................................................................................................................................... 33 Administrative and general expenses (A&G expenses) ....................................................................................... 35 Repair & Maintenance expenses.......................................................................................................................... 36 Depreciation ......................................................................................................................................................... 36 Return................................................................................................................................................................... 37 Operating expenditure (OE) ................................................................................................................................. 38 Capital expenditure............................................................................................................................................... 39 Commercial loss ................................................................................................................................................... 39 Provision of subsidy by the State Government..................................................................................................... 40 Tariff structures..................................................................................................................................................... 41 Average tariff ........................................................................................................................................................ 43 Cross subsidy ....................................................................................................................................................... 45 Trading ................................................................................................................................................................. 46 Electricity duty ...................................................................................................................................................... 48 RECENT DEVELOPMENTS IN REGULATORY PRACTICE ...................................................................................................... 49 Multi-year tariff (MYT)........................................................................................................................................... 49 Open access......................................................................................................................................................... 55 Renewable Portfolio Standard (RPS) regulations and orders .............................................................................. 64 WAY AHEAD ................................................................................................................................................................. 67 ANNEXURE 1.1 DETAILED DESCRIPTION OF MYT REGULATIONS ISSUED BY DIFFERENT SERCS................. 73 ANEXURE 1.2 EXECUTIVE SUMMARY OF STUDY UNDERTAKEN BY TERI FOR FOIR ON TARIFF ORDERS IN 2002 ................................................................................................................................................................................ 80 BACKGROUND .............................................................................................................................................................. 80 OBJECTIVE .................................................................................................................................................................. 80 CONSTRAINTS .............................................................................................................................................................. 80 APPROACH .................................................................................................................................................................. 81 TERI Report No. 2006RP23

Regulatory process............................................................................................................................................... 81 REGULATORY APPROACH TOWARDS ANNUAL REVENUE REQUIREMENT ............................................................................. 83 T&D losses ........................................................................................................................................................... 83 Power purchase.................................................................................................................................................... 84 Employee cost ...................................................................................................................................................... 86 Depreciation ......................................................................................................................................................... 86 Bad debts ............................................................................................................................................................. 87 COMPLIANCE BY THE UTILITY......................................................................................................................................... 87 REGULATORY EFFECTIVENESS ...................................................................................................................................... 87 T&D losses ........................................................................................................................................................... 88 Employee productivity .......................................................................................................................................... 89 Tariff rationalization .............................................................................................................................................. 90 Government support and subsidy......................................................................................................................... 93 CHAPTER 2 ANDHRA PRADESH................................................................................................................................. 94 INTRODUCTION............................................................................................................................................................. 94 CONSUMPTION AND ACCESS ......................................................................................................................................... 97 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 111 TARIFF RATE BALANCING ........................................................................................................................................... 134 GOVERNANCE ............................................................................................................................................................ 144 CONCLUSION ............................................................................................................................................................. 157 C H AP TE R 3 ASSAM................................................................................................................................................. 160 INTRODUCTION........................................................................................................................................................... 160 CONSUMPTION AND ACCESS ....................................................................................................................................... 161 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 168 TARIFF RATE BALANCING ........................................................................................................................................... 185 GOVERNANCE ............................................................................................................................................................ 191 CONCLUSION ............................................................................................................................................................. 200 C H AP TE R 4 DELHI (BRPL, BYPL AND NDPL) ...................................................................................................... 202 INTRODUCTION........................................................................................................................................................... 202 CONSUMPTION AND ACCESS ....................................................................................................................................... 204 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 211 TARIFF REBALANCING ................................................................................................................................................. 240 GOVERNANCE ............................................................................................................................................................ 247 CONCLUSIONS ........................................................................................................................................................... 260 ANNEXURE 4.1 TERI COMMENTS ON MYT CONSULTATIVE PAPER CIRCULATED BY DERC.......................... 262 C H AP TE R 5 JHARKHAND....................................................................................................................................... 267 INTRODUCTION........................................................................................................................................................... 267 CONSUMPTION AND ACCESS ....................................................................................................................................... 269 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 275 TARIFF RATE BALANCING ........................................................................................................................................... 294 GOVERNANCE ............................................................................................................................................................ 300 CONCLUSION ............................................................................................................................................................. 308 C H AP TE R 6 KERALA............................................................................................................................................... 309 INTRODUCTION........................................................................................................................................................... 309 CONSUMPTION AND ACCESS ....................................................................................................................................... 311 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 319 OTHER PERFORMANCE PARAMETERS .......................................................................................................................... 341 TARIFF REBALANCING ................................................................................................................................................ 341 GOVERNANCE ............................................................................................................................................................ 349 CONCLUSION ............................................................................................................................................................. 355 CHAPTER 7 MADHYA PRADESH .............................................................................................................................. 357 INTRODUCTION........................................................................................................................................................... 357 CONSUMPTION AND ACCESS ....................................................................................................................................... 360 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 367 TERI Report No. 2006RP23

TARIFF RATIONALISATION............................................................................................................................................ 385 GOVERNANCE ............................................................................................................................................................ 394 CONCLUSION ............................................................................................................................................................. 403 CHAPTER 8 MAHARASHTRA .................................................................................................................................... 405 INTRODUCTION........................................................................................................................................................... 405 CONSUMPTION AND ACCESS ....................................................................................................................................... 410 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 419 TARIFF/RATE BALANCING ............................................................................................................................................ 440 GOVERNANCE ............................................................................................................................................................ 447 CONCLUSIONS ........................................................................................................................................................... 460 CHAPTER 9 UTTARANCHAL ..................................................................................................................................... 461 INTRODUCTION........................................................................................................................................................... 461 CONSUMPTION AND ACCESS ....................................................................................................................................... 466 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 475 TARIFF RATE BALANCING ............................................................................................................................................ 496 GOVERNANCE ............................................................................................................................................................ 502 CONCLUSIONS ........................................................................................................................................................... 512 ANNEX 9.1 DETAILS FROM THE SUPPLEMENTARY ORDER FOR FY 2003-04 (ISSUED IN DECEMBER 2003) 514 C H AP TE R 10 WEST BENGAL ................................................................................................................................. 519 INTRODUCTION........................................................................................................................................................... 519 CONSUMPTION AND ACCESS ....................................................................................................................................... 522 EFFICIENCY IMPROVEMENT ......................................................................................................................................... 531 TARIFF /RATE BALANCING ........................................................................................................................................... 558 GOVERNANCE ............................................................................................................................................................ 569 CONCLUSION ............................................................................................................................................................. 579

TERI Report No. 2006RP23

1

Analysis and compilation of tariff orders

Introduction

Background

$ . & @ 4 CH ;C ;( $ < % < ) 4 . ) ) = ) = 3 G ! L 4 = 0 = - . ) = 4 3 = 4 - . ) = 0 4 " - . ) I L ;. ) < = CE < ; J (

;

<

-

.

=

= 0 0 L =

0 ( = = = -

=

-

. )

=

L ( $ K > $ "

0 - I

@ I ? = - = 4 4 3 -

=

TERI Report No. 2006RP23

2

Analysis and compilation of tariff orders

= 0

3 = = I

= 3 ,, ( = 4 = = 4 0

=

- = L . &J *4 CE = ,< < &< *< 6< < < +< 9< $ ! > ? ( ( @ A *J 6 "

3 ; ) CE

( 6J

;( $ < ; < ;9< ;. ) < CE

$

<

0 $

/ 4 . ) 4 " ) = ) = 3 G ! L 4 = D= 4 4 4 = 0 I ; = < - . ) = 4 3 = 4 - . ) - . ) = = -

0

-

TERI Report No. 2006RP23

3

Analysis and compilation of tariff orders

Scope of work

3 - . ) , = N 4 & * 6 $ E 0 = ! + = 4 = 9 , 2 = 4 - = 4 0 = = " o o o o o o o o . . $ ) ! J = = - . . ) D= = . ) - . ) = J J ; !< = = = = 4 . 4 = JOJ= D= ( I 4 ( $ -

TERI Report No. 2006RP23

4

Analysis and compilation of tariff orders

Methodology

0

!"

# . ) % = # =

# # . ) =

I = $!

6J

# # . ) P CE &J *4 CE 0 4

*J 6 CE = CE J

&! " ( H $ = . -

# ' C $ / G $ $( ! 4 4 =

( 0 ) B . G != <4 $ 4( 4 $ 0 ) ) 4 ; ,J < .5

$ ( 4 $ $ ! 4

A 0 ! )

. ;$ 4D=

)! * # + * -

# # ( . )

#

' = = + *

,! * ( = 0 -

# #

#

4 I 9 = A . ) / = % [email protected]

4!

4?

TERI Report No. 2006RP23

5

Analysis and compilation of tariff orders

- , =

=

=

Table 1 List of distribution tariff orders covered in the study

State Andhra Pradesh Assam Delhi Jharkhand Kerala (KSEB) Madhya Pradesh Maharashtra Uttaranchal West Bengal Month and year of operationalisation of ERC March 1999 August 2001 December 1999 April 2003 November 2002 July 2001 August 1999 September 2002 January 1999 One order for 4 distribution companies Order not issued 3 1 (JSEB) 1 1 (MSEB) 1 1 (WBSEB) Combined for FY 2003-04 and FY 2004-05 One order for 4 distribution companies 1 order for ASEB (unbundled) 3 Order not issued 1 One order for 4 distribution companies Separate orders for 3 distribution licensees 3 Order not issued 1 1 1 (MSEB) 1 (UPCL) - Combined with FY 2005-06 1 FY 2003-04 FY 2004-05 FY 2005-06

1 (MPSEB) Combined for FY 2003-04 and FY 2004-05

Source: TERI Compilation

A

= 2 4 =

=

- 4 . ) = 4 -

0 $

$ $ ! (

0

Parameters studied

0 4 = = . ) ( = = = 4 J . )4 3 0 9 = = 4

$-*

( $ I , B = = 4 0 = $ , 4 = -

, =

TERI Report No. 2006RP23

6

Analysis and compilation of tariff orders

= = = -% = 4 ) = 0

3 =

=

= " ; < ;-< ; < ; < ; < ;< &- # # % $ 0 = ; < ;-< ; < ; < ; < ;< ; < ; <H 3 ! = ;< ; 3 0 = 4 <B D C3 G( 3 ; 4 4 = < = 4 4 4 G( = 4 3 G ! 34 = . N ) ) = ( =

= = -

0 -

( = ) G ) . C

;

= JOJ=

<

@ " G( = GD 3 GC ) 4/ - 4 = I 4

TERI Report No. 2006RP23

7 3 3 3

Analysis and compilation of tariff orders

B B

= GD

3

4 . ) -

-

).

# # ,; < ) = C = $ J L = 3 6 4

& . D= -% = =

-% =

-

=

; < ;-< ( ; ; ; ; ; ,-. = P < ) <) < .< = < E

= 4 = = 4

0

= = ; < ;-< ; < ; < ; < ;< ; < ; < ;< ;%< ;0< $) H . ) . . ! . 0 . ) = - . ) . ) = -

TERI Report No. 2006RP23

8

Analysis and compilation of tariff orders

Data constraints faced

= .

; < J = = ;-< 4 3 = .

= 3 4 3 4 3 4 = 4 4 4 4

; < ( $ = A/. /< = ; <C ; < = = = 4 = = = . ) 4 N = 0 = = 4 4 A

0 /

4( ; 0 > 0

;> /< .

= -

-

- I = -

=

; 3 = 0 -

= <4 - . ) 4 = JOJ=

3 4 0 -

P

. )

0 ) = A L

I

TERI Report No. 2006RP23

9 = =

Analysis and compilation of tariff orders

4 / 4 4 B 4

0

. ) 4

=

. ) -

TERI Report No. 2006RP23

10 Analysis and compilation of tariff orders

CHAPTER

1 Key Findings

Introduction

> 0 A 4? / C $ = 0 4 4( CE = 4 $ &J * $ 4( CE 4 [email protected] 6J 0 % " 4! 4

0 4

=

= 4 = -

4 - . )

= = 4 0 4 = = 3

0 4 =

4 4 4= -

4 4

3

= 0 4

Form of regulation

H @ = 4 = < < = . 4 3 ; ; J

J J = = = L

=

1

3 2

= = 4

1

Often referred to as `gold plating'

TERI Report No. 2006RP23

11 = = A

Analysis and compilation of tariff orders

= = $ / = = = = = I (E = 0

= = 4. ) ;$ < $ / / = 4 4 =

= 4

=

$

-

= 0 3 4 = = = $ 4 / = = J = = 2 = 4 I

0 $ / = 3 0

Process of regulation Status of reform

- ,, = 9

Table 1.1: Status of unbundling in 9 states under study

State Andhra Pradesh Generation company Transmission company Distribution companies Electricity sector APGENCO (Andhra Pradesh Generation Corporation Ltd) APTRANSCO (Transmission Corporation of Andhra Pradesh Ltd) APEPDCL (Eastern Power Distribution Company Limited of Andhra Pradesh) APCPDCL (Central Power Distribution Company Limited of Andhra Pradesh) APNPDCL (Northern Power Distribution Company Limited of Andhra Pradesh) APSPDCL (Southern Power Distribution Company Limited of Andhra Pradesh) Assam Generation companies Transmission company Distribution companies APGCL (Assam Power Generation Corporation Limited) AEGCL (Assam Electricity Grid Corporation Limited) LAEDCL (Lower Assam Electricity Distribution Company Limited) CAEDCL (Central Assam Electricity Distribution Company Limited) UAEDCL)(Upper Assam Electricity Distribution Company Limited) Bulk Supply Trader: ASEB December 2004 Year of unbundling February 1999

TERI Report No. 2006RP23

12 Analysis and compilation of tariff orders

State Delhi Generation company Transmission company Distribution companies GENCO (Indraprastha Power Generation Company Ltd) TRANSCO (Delhi Power Supply Company Ltd) BRPL (BSES Rajdhani Power Limited) BYPL (BSES Yamuna Power Limited) NDPL (North Delhi Power Limited) Jharkhand Kerala Madhya Pradesh Generation company Transmission company Distribution companies MPPGCL (Madhya Pradesh Power Generating Company Ltd) MPPTCL (Madhya Pradesh Power Transmission Company Ltd) Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Ltd. Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Ltd. Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Ltd. Trading company Maharashtra Generation company Transmission company Distribution company Holding Company Uttaranchal Generation company Transmission company Distribution company West Bengal S O U R C E TERI Compilation UJVNL (Uttaranchal Jal Vidyut Nigam Ltd) PTCUL (Power Transmission Corporation of Uttaranchal Limited) UPCL (Uttaranchal Power Corporation Limited) Restructuring announced in January 2007 January 2007 MSPGCL (Maharashtra State Power Generation Company Limited) MSTCL (Maharashtra State Transmission Company Limited) MSEDCL (Maharashtra State Electricity Distribution Company Limited) MSEB Holding Company June 2004 MP Power Trading Company (`Tradeco' or `MP Tradeco'). June 2005 Unbundling has not yet taken place Unbundling has not yet taken place NA NA June 2005 Electricity sector Year of unbundling November 2001

& 4

9 4? 4> 0

A /

2

0

Public participation and timeliness of orders

- , I . )

On 24th January 2007, the bifurcation of the West Bengal State Electricity Board (WBSEB) was approved by the Cabinet. According to the approved scheme, two new government companies would be formed with effect from 1st April 2007, but the final transfer scheme would be formulated within one year after closure of accounts of the WBSEB for 2006-07. The West Bengal State Electricity Transmission Company Limited (WBSETC) would look after transmission and state load despatch functions, while the distribution and hydrobusiness are to be vested with the West Bengal State Electricity Distribution Company Limited (WBSEDC).

2

TERI Report No. 2006RP23

13

Analysis and compilation of tariff orders

Table 1.2: Public participation and timeliness of orders across 9 states under study

S.No. 1 2 3 4 5 6 7 8 9 * FY 2006-07 S O U R C E TERI assessment and compilation States Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal Number of participants in the hearing process in tariff review process (FY 2005-06) 185 19 98 104 33 104 13432* 175 22 Timeliness of orders On time On time On time On time3 On time On time Delayed4 On time5 On time

C

- =

-% -% =

=

= 4?

A C 4

/ -

= -

= -

. ) 4 -% ) . ? =

C = 4 4 % -% 4 = -

4

6

> ) 0

. )

= .

0

= ) J R = = 4

. Q ? / %

3 There were no tariff orders issued for FY 2004-05 and FY 2005-06 due to non-filing of tariff petition 4 There were no tariff orders issued for FY 2004-05 and FY 2005-06 due to non-filing of tariff petition 5 There was however, considerable delay in acceptance of the petition by the Commission on the ground that adequate information was not made available in the petition 6 One reason for the same may be because no hike in tariff proposed by the KSEB in any of the above years. The KSERC has made efforts to increase consumer participation in the tariff setting process however the number of objections received still remains low.

TERI Report No. 2006RP23

14 Analysis and compilation of tariff orders ) ) @ = ) I = ? ) = 4) C 3 4 < 3 ) @ 4 I = ) ( = . > 0 ) = . ) ; 0 = N 4 -% R 4 3 0 = ) 0 J Q CE = 6J 4 L / 4 4 0 = = = -

Consumer Grievance Redressal

& 0 0 . 6 = 2 4 4 = = 4 ) 4 = = = = = . ) 3 = . * ;6<

TERI Report No. 2006RP23

15

Analysis and compilation of tariff orders

I 0 = J = = = * ;C ( , ,< - 0 . ) - . )7 P 4 4 H H = 4 0 = -

I

Consumer Court

Utility

CGRF

Ombudsman

??

Figure 1.1. Consumer grievance redressal mechanism in India

2 = -

= 4 - H 4 = C ) ( ) % . ) = % 4

= P% 4 ;( 64 ( )<

-

;

< ( * ;6< ( )

4 ;+<

. = % = . )

P

7 As on April 2006, 19 SERCs have institutionalized grievance redressal forum and Ombudsman

TERI Report No. 2006RP23

16 Analysis and compilation of tariff orders ) 2 . ) 3 = 4 = ) I = 4-% 4 =

Consumer advocacy

. . ) = ) ) ; ) -% ) - ,& = . 9 I ) = = = J = = = L )< = . ) = ) ) 0 = = ;? )< J ? 0 =

-

Table1.3: Status of consumer grievance and redressal mechanism

S.No. 1 2 3 4 5 6 7 8 9 States Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal - Appointed and functioning; X- Not appointed S O U R C E TERI compilation X X X * Ombudsman appointed and functioning Consumer Grievance Redressal Forum Standards of performance issued

*Only metering and billing

. 4 4 3 B ; =

3 -

- H ; 4 4 <B 4 ; L

4

- <B

TERI Report No. 2006RP23

17

Analysis and compilation of tariff orders

< -

<B3 4 2 = 4 ) 0 @

; 3 = H -

3 =

= =

Anti-theft measures

& N 4 ) 3 = = 4) 4 4 40 = = . = ,&9 ; 4 ) $ ,&6 % ( = L $ S ) . I I = 4 ; $. <P S ! "J 4 ;) <P !. )H( C 4 $ $ . ) 0 = <4 . D= 4 H ) ) ,&9 4 ,9 &4 = = . ) DL ,&6 4 = 3 3 4 4 4 ) % 4 3 ) = -

S $

$

;!$ <P

TERI Report No. 2006RP23

18 Analysis and compilation of tariff orders 0 = 4 = = 4

4 4 ) = = = = ! 4 D= ;D ) !< ;) . C< = E 3 $ L $ ! 5 =

= F 2 = 4 H I 4

.

=

=

) ) J ). C 3 ) = ;/ $ 5 < ! = . C 3

!

0 = 4 - /. .

4.

% ;/E$ 5 <4 F0 ;/ $ 5 < ! = = = > 0 3 4 D= - 0 D CE .

( = =

4 ;! D < J -

! ( C = 4> / . G ) ? 4 ?. /

J D = *J 6 , 2 = 4 4 D= = ! $ = + 4

I

/ = -

CE * * ) -

/ 4 = =

TERI Report No. 2006RP23

19 (

Analysis and compilation of tariff orders

$ 0

4 J

I

J 4 5

= -

0 2

= 4 - 4 -

-

( = = -

4 (. /N (. !)5 =L -

0 =

B

= 4D= D= = @ 4 ,& . ( 3 0 = G ) D= ) 3 ! < ! = A / CE = = = P 2 = 4 6J = = ! 0 = = ,66 = - !. )H(. = 6 S = 2 = = ) ,&, CE &* @ 4 = [email protected] H J ; ) ;D @< -

A 4

=

0

=

= -

Compliance of directions issued by SERCs

. ) = , . $

TERI Report No. 2006RP23

= . - . )

= "

= %

=

G ! = G !

$ $ !

20 Analysis and compilation of tariff orders & * 6 ) ( @ @ ) + .4 = H = @ ;@ )< &J *4 [email protected] ) 3 ) 6; = I ) ) ) = CE = = 3 = J <4 ) = CE J 3 J = 9 4 4 $ ) 4 = ) CE 6J ! = . 0 0 ) ! = =

4

I ( =

. ) ) 4 4 = = = = . ) 3 G ! 4 4 = = . L = = =

= -%

-

= = = = 4 4 = -

Studies undertaken

. ) = 4 TERI Report No. 2006RP23

0

= 0

21

Analysis and compilation of tariff orders

= Q D= 4 = = 4 4 = . . ) D= $ 0 R = = "

Information available in public domain

. ) . ) 2 . ) = 0 ( ! = ; (. < ) = ) 0 ! = = . 0 0 ;($ )< ( $ ($ ) ) ) 43 4 = (. 0 0 = 04 . ) 0 - ! ) = 5 3 4! ) = J (. ) ;! ( ,, )< . N = . . ) = = 4 . ) I = -

= =

-

0

)

; 0 < -

TERI Report No. 2006RP23

22 Analysis and compilation of tariff orders = ( , & * 6 D D D 4 ) ) J = = $ "

$ G

J

T

J

+ 9 , ,, , ,& ,* ,6 , ,

K )

J

$ $ $

! ! = ! = J A 0J $ $ $ $ ! .

; $ $ ! < ) ! / ) @ J 0 = ($ ) 3 ( > 0 0 > ) . < 0 0 0 0 0 ; . = = 0 . ) = ; (. < ;> )< . 4 0

0! !

N H ! U N

Status of important regulations issued

- , * I ) & = 4 J 4 = ; 4 < 4

TERI Report No. 2006RP23

23

Analysis and compilation of tariff orders

Table 1.4: Status of important regulations to be issued by SERCs of 9 states under study

S.No. States Open access Method for computation of open access surcharge finalised Intra state trading Multi-year tariff Standards of Ombudsman Guidelines for performance redressal of consumer grievances

1 2 3 4 5 6 7 8 9

Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal - Issued; X- not issued X X X (draft) X X X* (draft) (draft) (metering & billing)

* Phasing to begin from 2007 S O U R C E TERI compilation

C = 2 = 4

- =

- 4 &

4 = = 4 (E = - I &4 4 . ) = 0 "J 4 4- 0 4 4 ) 3 ) = . 0 3 = = 0

= =

Staffing

A

%

= =

=

& ;. + <

4 - 4 J 0 4 .

.

C

.

TERI Report No. 2006RP23

24 Analysis and compilation of tariff orders $ = 4 4 % . . C3 4 - = 4 "J $ = $ L . ( . ) - = ( $ . 34 D= $ " 4 4 = 4 = . . ) D= = J. . D ) ; < -J ;,< I 4 4 D ) 9 4 4 = -

D= I - 0

0 D= I = 3 = = C , & ) C 4 C 3 . - 4 D= -

0 D= 99 =

D= )

A = = 4 I

= 3 4

3 = 4 =L 3 4

TERI Report No. 2006RP23

25 - = C ) ) ! )

Analysis and compilation of tariff orders

= $ =

4 4D % 2 4 = 4

B ) = ) > 0

) & [email protected] 4? -

- ,6 ) 4( 4.

-

; 3 <

)

9

Table 1.5: Staffing in SERCs across 9 states under study

S.No. 1 2 3 4 5 6 7 8 9 States Andhra Pradesh Assam Delhi Jharkhand* Kerala** Madhya Pradesh Maharashtra Uttaranchal West Bengal Number of professionals* 19 6 16 2 4 22 20 9 7

* Both are as consultants, **Two out of these are consultants S O U R C E TERI assessment and compilation

0 = I 0 I = D= D= 0 *& I 4 3 D= ! - = 4 = 4 > ) H

- = 4 =

) . 4 4 D= . ) . 4 > ? 0

I

C - ?. )4 . ,& . 4> ) . = =

L ) 0

A -

0 4 . < ) = C D= 3 ; )< = .

=

;C

TERI Report No. 2006RP23

26 Analysis and compilation of tariff orders

)

=

=

Impact of regulation Consumption and access

4 0 4 - , = 4 -

Table 1.6: Classification of trend in growth sales, number of consumers and connected load

Growth rate 0-3% 3-5% 5-10% Classification Low Moderate High

- , 9

= CE &J * CE 6J

Table 1.7: Trends in consumption and load patterns across 9 states under study from FY 2003-04 to FY 2005-06

States Andhra Pradesh Assam Delhi Jharkhand Kerala* Madhya Pradesh Maharashtra* Uttaranchal West Bengal S O U R C E TERI Assessment Sales trend High High High High High High High High High Consumer number Moderate High High High High Low Low High High Connected load Moderate High High High Moderate Moderate High High Data not available

A 4 3 - ,+ =

= -

9

;CE

6J

<

TERI Report No. 2006RP23

27

Analysis and compilation of tariff orders

Table 1.8: Trend in connected load per consumer and consumption per consumer

S.No. 1 2 3 4 5 7 6 8 9 States Connected (Sanctioned) load per consumer kW / consumer

Andhra Pradesh Assam Delhi Jharkhand Kerala* Madhya Pradesh Maharashtra* Uttaranchal West Bengal

Consumption per consumer(FY 2005-06) kWh/consumer 2303 1764 4561 3569 1203 2692 4042 2924 3173

1.56 (Constant) 1.89 (Declining trend) 3.14 (Increasing trend) 1.62 (Increasing trend) 1.32 (Decreasing trend) 1.38 (Slight increase) 2.19 (Increasing trend) 1.94 (Increasing trend) 1.59*

S O U R C E TERI estimate *Trend not available

- ,9 9

=

=

Table 1.9: Load factor for various consumer categories S.No. States Domestic Commercial 1 2 3 4 5 6 7 8 9 Andhra Pradesh Assam Delhi Jharkhand Kerala Maharashtra Madhya Pradesh Uttaranchal West Bengal

S O U R C E TERI estimates

Industrial 18.08% 10.36% 39.63% 24.21% 12.40% 19.47% 29.51% 33.41% 26.69%

Agriculture 19.10% NA 18.83% 13.47% NA 15.73% 18.86% 17.91% 19.61%

10.72% 8.51% 11.13% 27.54% 7.85% 10.39% 21.57% 12.33% 8.24%

14.09% 9.53% 13.22% 8.18% 8.06% 13.54% 13.78% 21.51% 14.07%

- =

4

= 0 ! 4

& ,* 0A CE &J * C

= CE 6J 4( C $ = C = + 6T = T H = 0 = 3 4

3 ** 0A

4 = . ) 0

TERI Report No. 2006RP23

28 Analysis and compilation of tariff orders = - ,, 9 - , ,, = = CE 6J 4-

Table 1.10: Categories contributing highest in sales

S.No. 1 2 3 4 5 7 6 8 9 States Andhra Pradesh Assam Delhi Jharkhand Kerala* Madhya Pradesh Maharashtra* Uttaranchal West Bengal

Category contributing highest in sales Agriculture Domestic Domestic HT Industry Domestic Industry Industry Domestic Domestic

% contribution 33 36 51 43 45 38 45 36 86

*Based on actuals S O U R C E TERI estimates

Table 1.11: Categories contributing highest in revenue

S.No. 1 2 3 4 5 7 6 8 9 States

Category contributing highest in revenue

% contribution 51 29 38 54 40 50 48 36 42

Andhra Pradesh Assam Delhi Jharkhand Kerala* Madhya Pradesh Maharashtra* Uttaranchal West Bengal

HT Industry Domestic Commercial HT Industry HT & EHT Industry Industry Industry Industry Industry

S O U R C E TERI estimates

- = = < 3 I =

3 4 ; 3 . ) -

!

3 =

TERI Report No. 2006RP23

29

Analysis and compilation of tariff orders

Rural electrification

- ,, = 9

Table 1.12: Status of rural electrification across 9 states under study

Villages to be electrified State Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal Number 48 6043 21713 Nil 1643 744 2630 6240 % 0.18% 24% 78% Nil 3.15% 0% 18% 16.44% Rural households to be electrified % 40.3% 83.5% 14.5% 90.00% 34.5% 37.7% 34.5% 49.7% 79.7%

S O U R C E Website of Ministry of Power

http://powermin.nic.in/JSP_SERVLETS/internal.jsp

- = $

> , 0 = ,

9 T T = I 4 D=

4

4 -

= -

3 = = 4

-

, 4 0

Status of franchisee

C @ -% ;< ; < ; < ; =< = " = = $ = = A $ / 4 4( = $ 4

TERI Report No. 2006RP23

30 Analysis and compilation of tariff orders - , ,&

S No 1 2 3 4 5 6 7 8 9 State

=

.

9

Franchisee in place (No. of villages) 8 816 114 5321 1713

Table 1.13: Status of franchisee across 9 states under study

Expression of interest (No. of villages)

Andhra Pradesh Assam Delhi* Jharkhand Kerala Madhya Pradesh Maharashtra* Uttaranchal West Bengal

Revenue input based and in place in 5 RGGVY and 3 other villages Revenue-collection model, coverage 816 villages by individual entrepreneurs Revenue collection based in 114 villages Revenue collection based model in operation by Self Help Groups (Women participation) engaged in 5321 villages Revenue-Collect ion base model , coverage 816 villages by individual entrepreneurs

*Distribution already privatised ** Bhiwandi in urban area is a franshisee area given to Torrent Company Ltd. S O U R C E Website of Ministry of Power http://powermin.nic.in/bharatnirman/Franchisee%20System%20in%20States.pdf <accessed in December 2006>

A

0

4A -

/

@ 4 0 >

= 0

Status of metering

- , ,*

S No. 1 2 3 4 5 6 7 8 9 State Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra (MSEB) Uttaranchal West Bengal

=

11 kV feeders Numbers 9239 709 1850 461 1334 5660 6148 1106 2347 Metered 8674 709 1850 396 1334 5660 6148 1106 2347 % 94 100 100 86 100 100 100 100 100

9

Distribution transformer Numbers 351751 21980 8000 16500 35442 160000 215241 27681 53420 Metered 38729 1528 3500 15000 5506 3000 52923 9360 13500 % 11 7 44 91 16 2 25 34 25 Consumers metering (Lakhs) Numbers 157.46 12.74 26.65 6.53 77.99 64.92 135.32 10.60 57.31 Metered 150.47 12.09 26.65 4.90 77.99 46.50 118.12 10.04 56.70 % 96 95 100 75 100 72 87 95 99

Table 1.14 : Metering Status across 9 states under the study

S O U R C E : http://www.apdrp.com/apdrp/projects/pdf/Metering_status.pdf <accessed in December 2006>

= T! 4

!

4 > > 0 0 9,T = ( $ ! = ? -

TERI Report No. 2006RP23

31 = @ . $ = ; ,

Analysis and compilation of tariff orders

T =

A = 9 T (

/ 96T ;+ T< 4 G !

99T > 0 -

4 = ; 6T<4 ( 0

$

T<

= = -

B

( $ 0 @$ )5 0

= / 3 , ,

Box 1.1: Findings of study undertaken by IIT Roorkee on metering and billing irregularities in the UPCL system Major findings of a study undertaken by IIT Roorkee (using month wise division wise data for April 2005 to June 2006) for UERC on metering and billing irregularities in the UPCL system are given below: · About half of the consumers have been billed on actual consumption with remaining consumers billed on provisional/normative consumption · No attempt has been made by UPCL to improve the situation with the number of defective meters remaining more or less same during the time period of the study · Large number of consumers (about 12%) including subsidizing categories (non domestic, industrial) have no meters (fictitious meter numbers) and are billed on assumed consumption. Provisional billing on continuous basis result in serious financial repercussions for consumers as well as for licensee · Bills are delivered late not as an exception but as a practice and late payment surcharge levied without any fault of consumer · UPCL has allowed huge arrears to accumulate for years and has continued to supply to such installations · UPCL's database has many inconsistencies and apparent errors Source: "Irregularities in UPCL's billing system ­ Report on studies conducted by IIT Roorkee", Presentation at the meeting of the Board of Director of UPCL by IIT Roorkee on 13th February 2007 in Dehradun

T&D losses, collection efficiency and AT&C losses

- , ,6 ) ( = 4 $ 4 = G ) = = . ) > 0 @ 9 = 0 = G ) G ! G ! 4

TERI Report No. 2006RP23

32 Analysis and compilation of tariff orders

S.No. 1 2 3 4 5 6 7 8 9

Table 1.15: Trend in efficiency parameters of T&D loss, Collection efficiency and AT&C loss

States T&D loss Collection efficiency Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh (Based on actual data till 2004-05) Maharashtra Uttaranchal West Bengal S O U R C E TERI assessment * Based on FY 2004-05 over FY 2003-04 Improvement Insignificant improvement Improvement Increasing Improvement Insignificant Improvement Improvement Improvement Improvement Improvement Improvement NA Deterioration*** Improvement Constant Decreasing Increasing

AT&C loss

Improvement Marginal improvement Improvement Deterioration Marginal improvement Marginal improvement except for MP Madhya KVVCL Improvement Deteriorating Improvement

- ,, 9

=

=

G !

4

G )

Table 1.16: Level of T&D loss, collection efficiency and AT&C loss in the 9 states

S.No. 1 2 3 4 5 6 7 8 9 States T&D loss FY 2005-06 (Actual) 21.40% 35.67% NA 47% 24.84 43.08%**** 33.26% 31.30% 24% Collection efficiency FY 2005-06 (Actual) 100% NA NA NA 92.19%** 88.95% NA 70.44% NA AT&C loss FY 2004-05 (Actual) NA NA 35.22% 69.23% 27.44*** NA NA 42.85% 35.66%

Andhra Pradesh Assam Delhi* Jharkhand Kerala Madhya Pradesh (Based on actual data till 2004-05) Maharashtra Uttaranchal West Bengal

* The Tariff order now reports only AT&C losses as the bids for privatisation were based on AT&C loss reduction target. The AT&C loss varies across the three companies ** FY 2004-05 *** FY 2003-04 **** FY 2004-05

$ 0 ( $ 4( 4> 0 > 0 4! = I 4

A 2 @ @ / = 4 =

4

= - . ) 0 =

4 - I =

TERI Report No. 2006RP23

33 0

Analysis and compilation of tariff orders

4 =

4

0

Power Purchase Cost

- ,, 3 ; 34 = J) D= <

Table 1.17: Contribution of power purchase and fuel costs in ARR

States Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh* Maharashtra Uttaranchal West Bengal * Based on petition for FY 2005-06 S O U R C E TERI estimate Power purchase and fuel cost as % of ARR FY 2005-06 (Approved) 80.13% 51.86% 75.61% 60.66% 44.05% 60.77% 63.65% 67.67% 71.49%

$ + T . ) = =

= $ 0 4 4

Employee Costs (EC)

- , ,+ = = ; 4 < 9 = 4 CE , 6J =

TERI Report No. 2006RP23

34 Analysis and compilation of tariff orders

Table 1.18: Productivity in employee costs

S.No. 1 2 3 4 5 6 7 8 9 States Andhra Pradesh Assam Delhi Jharkhand* Kerala Madhya Pradesh** Maharashtra Uttaranchal West Bengal EC as a % of ARR % 7.06% 29.00% 8.09% 8.70% 25.00% 14.83% 12.72% 15.19% 9.00% EC per unit of sale Rs/kWh 0.21 1.47 0.32 0.59 0.86 0.61 0.42 0.37 0.36 No of employees/ 1000 consumers 3.61 12.45 5.63 6.44 3.08 2.37 NA NA 4.8 Revenue per employee Rs Crore 0.14 0.06 0.35 0.16 0.13 0.12 NA NA 0.18

*Based on revised estimates submitted by JSEB for FY 2005-06, ** Till FY 2004-05

Note: Andhra Pradesh and Delhi are for distribution segments; Assam, Jharkhand, Kerala, Madhya Pradesh and West Bengal for generation, transmission and distribution combined and Uttaranchal for transmission and distribution combined S O U R C E TERI estimates

=

= $

,N 0A ,* N 0A ) I

4

= - , ,9 - = = =

Table 1.19: Trend in productivity in employee costs

S.No. States EC as a % of ARR EC per unit of sale Rs/kWh Constant Increasing Decreasing Decreasing Increasing Decreasing Constant Decreasing Decreasing No of employees/ 1000 consumers Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing** N.A. Decreasing Revenue per employee Rs Crore Increasing Increasing Increasing Increasing Decreasing Increasing Increasing** N.A. Increasing

% 1 Andhra Pradesh Constant 2 Assam Decreasing 3 Delhi Decreasing 4 Jharkhand Decreasing 5 Kerala Increasing 6 Madhya Pradesh Decreasing 7 Maharashtra Increasing 8 Uttaranchal Decreasing 9 West Bengal Decreasing * Based on revised estimates submitted by JSEB ** Till FY 2004-05 S O U R C E TERI assessment

/ ?

= = 4( $

- = 4 = 4> = L 0 = H

= = L!

4A - = 0

= -

TERI Report No. 2006RP23

35 =

Analysis and compilation of tariff orders

=

= 0

4-

Administrative and general expenses (A&G expenses)

- , G 3 D = 9 CE 6J =

Table 1.20: Productivity in A&G expenses

S.No ' 1 2 States Andhra Pradesh Assam A&G as a % of ARR % 1.34% A&G per unit of sale Paise/kWh 3.9

1.32% 6.75 3 Delhi 1.34% 5.38 4 Jharkhand* 2.00% 13.4 5 Kerala 2.70% 9.2 6 Madhya Pradesh** 1.56% 6.39 7 Maharashtra 0.93% 3.1 8 Uttaranchal 1.74% 4.0 9 West Bengal 1.50% 5.8 *Based on revised estimates submitted by JSEB for FY 2005-06, ** Till FY 2004-05 Note: Andhra Pradesh and Delhi are for distribution segments; Assam, Jharkhand, Kerala, Madhya Pradesh and West Bengal for generation, transmission and distribution combined and Uttaranchal for transmission and distribution combined S O U R C E TERI compilation

- , , 3

=

=

G D

Table 1.21: Trend in productivity in A&G expenses

S.No 1 2 States Andhra Pradesh Assam A&G as a % of ARR Constant A&G per unit of sale Marginal decrease

Increasing Marginal decrease 3 Delhi Increasing Increasing 4 Jharkhand* Marginal Decrease Increasing 5 Kerala Increasing Increasing 6 Madhya Pradesh** Increasing Increasing 7 Maharashtra Decreasing Decreasing 8 Uttaranchal Increasing Decreasing 9 West Bengal Decreasing Decreasing *Based on revised estimates submitted by JSEB for FY 2005-06 ** Till FY 2004-05 S O U R C E TERI compilation

-

= = = C 4

- = 4 -

( = ,

A G D -

/

3

G D &T

TERI Report No. 2006RP23

36 Analysis and compilation of tariff orders

Repair & Maintenance expenses

- , = T D C G( 3

Table 1.22: Trend in productivity in Repair & Maintenance expenses

S.No. 1 2 States Andhra Pradesh Assam R&M as a % of GFA Trend Decreasing R&M as a % of GFA % 2.20%

Increasing 1.29% 3 Delhi Increasing 4.09% 4 Jharkhand* Increasing 2.86%* 5 Kerala Marginal Decrease 1.17% 6 Madhya Pradesh** Increasing 2.42% 7 Maharashtra Marginal Increase 2.60% 8 Uttaranchal Increasing 4.68% 9 West Bengal Decreasing 1.80% *Based on revised estimates submitted by JSEB for FY 2005-06 ** Till FY 2004-05 S O U R C E TERI estimates

G 3 ( 0 > 0 4

8

-

-% = 0 G 3 (

Depreciation

- , & = = - = . )

Table 1.23: Approach adopted by SERCs towards depreciation

S.No. 1 2 3 4 5 6 7 8 9 States Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal Basis of providing depreciation MoP Notification 1994 Linked to repayment portion of loan in the year SERC granter depreciation as per MoP notification of 1994. However, the rate of depreciation was challenge by the discoms. The matter remains pending with the Supreme Court MoP Notification 1994 In accordance with KSERC regulations. Allowed on CERC norms Norms issued under E(S) Act, 1948 Based on actuals of past years Allowed on the basis of CERC norms As per provisions of Electricity Supply Act 1948, upto FY 2004-05 and as per WBERC Terms and Conditions of Tariff, 2005 in FY 2005-06

S O U R C E TERI Compilation

8

JSEB reported a PLF of 11% and 13% for FY 2004-05 and FY 2005-06 respectively

TERI Report No. 2006RP23

37

Analysis and compilation of tariff orders

( 69T (. !)5 & 6T; $

4 ! 4

( )

) 0

= CE = ) * ! 6J <

= *9T = -

)

) P

= ( $ 0 CH

-

Return

- , * = = - = . )

Table 1.24: Approach adopted by SERCs towards provision of return

S. No 1 States Andhra Pradesh Basis of providing return The Commission has considered a 16% return on net capital base and 0.50% on the approved loans taken to the Capital Base of licensees Return not allowed by SERC due to poor performance of licensees in FY 2004-05, SERC did not allow return in FY 2005-06 16% in accordance with Policy directions issued by GoNCTD as part of the reform package Return not provided as the Commission adjusted the same with the loss level reduction proposed by the petitioner 14% of the equity base Return on Net Fixed Assets @ 3% 4.5% of Net Fixed Assets in accordance with E(S) Act and gazette notification of the Government of Maharashtra Return not provided as assets financed totally out of grants and loans Till FY 2004-05 - Adjustment for disallowance of capital cost FY 2005-06: Reasonable return on equity capital of the Board @ 13.25% (SBI PLR+3%) in FY 2005-06

2 3 4 5 6 7 8 9

Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal

S O U R C E TERI Compilation

I > @ % ) < 3 = = = 4

TERI Report No. 2006RP23

4 = = > 0

)

4

0 4

@

4

) ; )

-

= = 4 @ = 3 / = = -

0 &T

I -

38 Analysis and compilation of tariff orders 3 J = 4 = =

Operating expenditure (OE)

3 ,9J 6T 0

9

4 0 4. ) = 4 3

+J6 T

- , 64 3

= - ,& 3

- ,&

=

Table 1.25: Employee costs, A&G expenses, R&M expense, interest costs and depreciation as proportion of total operating expenditure for Andhra Pradesh and Delhi

S.No. States Distribution segment only Andhra Pradesh Delhi Employee Costs as a % of OE 34.88% 34.71% A&G expense as a % of OE 6.66% 5.33% R&M expense as % of OE 7.04% 13.87% Interest costs as a % of OE 22.24% 10.15% Depreciation as a % of OE 21.62% 13.12%

1 2

S O U R C E TERI estimates

Table 1.26: Employee costs, A&G expenses, R&M expense, interest costs and depreciation as proportion of total operating expenditure for Assam, Jharkhand, Kerala, Madhya Pradesh and West Bengal

S.No. States Generation, Transmission and distribution segments Assam Jharkhand Kerala Madhya Pradesh Maharashtra West Bengal Depreciation as a % of OE 6.53%* 9.32% 12.51% 20.71% 25.42% 28.15%

1 2 3 4 5 6

Employee costs as a % of OE 60.24% 22.09% 44.90% 37.79% 33.52% 30.40%

A&G expense as a % of OE 2.75% 4.72% 4.81% 3.98% 2.46% 4.92%

R&M expense as % of OE 5.29% 5.54% 4.52% 12.46% 11.66% 8.38%

Interest costs as a % of OE 15.08% 56.75% 30.97% 18.16% 11.61% 14.28%

S O U R C E TERI estimates * Depreciation to the extent of loan repayment was approved

Table 1.27: Employee costs, A&G expenses, R&M expense, interest costs and depreciation as proportion of total operating expenditure for Uttaranchal

S.No. States Transmission and distribution segments Uttaranchal Employee costs as a % of OE 42.47% A&G expense as a % of OE 4.86% R&M expense as % of OE 13.16% Interest costs as a % of OE 24.64% Depreciation as a % of OE 14.88%

1

S O U R C E TERI estimates

9

All expenditure except power purchase and fuel costs

TERI Report No. 2006RP23

39 - = % 0 -

Analysis and compilation of tariff orders

>

?

3 = 0 -

C =

4

= !

4 -

G 3 ( 3

=

Capital expenditure

) I . 4 = 3 - = 3 = 4 . ) = = -

2 3 -

= 4

. ) 0 ! ! 3

)

=

= I = I 3 CE 6J ;9 T = = -

! <4 - I =

, I

6)

Commercial loss

) 9 CE *J 6

10

; ,9 ) - , + = =

-

< CE =

&J *

, 9 =

Table 1.28: State wise commercial loss (w/o Subsidy) of power utilities

Region/State Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharastra Uttaranchal West Bengal FY 2003-04 (1579) (656) (1781) (730) (916) (667) (549) (40) (296) FY 2004-05 (1194) (1081) (812) (1183) (239) (764) (804) (179) (275)

S O U R C E Report on Restructuring of APDRP, Ministry of Power, GoI, October 2006 (P Abraham, Chairman, Task Force & Former Secretary, MoP, GoI)11

10 As per Economic Survey 2006-07, the commercial loss (excluding subsidy) for FY 2005-06 (provisional) is Rs. 21110 Crore and FY 2006-07 (RE) is Rs. 26150 Crore. 11 The loss figures are no based on audited accounts in all states. Accounts may show considerable variation due to adjustments.

TERI Report No. 2006RP23

40 Analysis and compilation of tariff orders - = 4> 0 = 4( = =L ?

12

$

4(

4 @ $

4 4 4! 4

A

/

Provision of subsidy by the State Government

- , 9 D= = = = .

Table 1.29: Estimated and released subsidy by State Governments

States FY 2003-04 Andhra Pradesh* Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal 1513.50 Estimated subsidy FY 2004-05 1303 FY 2005-06 1599.50 FY 2003-04 1513.50 Subsidy released FY 2004-05 FY 2005-06

1303 1599.50 69.69 NA 110 76 49 0.04 No subsidy to distribution companies except during roll-back of tariff for domestic and agricultural consumers in FY 2005-06 and FY 2006-07 Accounts of JSEB do not Accounts of JSEB do not mention 40 mention any subsidy on 40 any subsidy on account of tariffs account of tariffs 0 0 375 96 51.31 556.46 1055 1100.83 784 1574.3 667 1563.76 1049 1100.83 778 1553.52 0 1562.48

No subsidy provision No mention of subsidy in the petitions and orders. Further details are given in Chapter 10 of this report

*Subsidy is administered on a monthly basis. As per the APERC, it is released on time

- ,& = . D=

-

=

-

-

Table 1.30: Provision of subsidy by the State Government and its disbursement across 9 states under study

States Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal West Bengal S O U R C E TERI compilation Provision Yes Yes (Till FY 2004-05) Yes Yes Yes Yes Yes No Yes Disbursement (FY 2003-04 to FY 2005-06) On time On time On time On time Not paid on time On time (post 2003-04) On time Not applicable On time

12 . In Kerala, the Regulatory Commission had focussed primarily on the improving the financial health of the State Electricity Board.

TERI Report No. 2006RP23

41 = . D= -

Analysis and compilation of tariff orders

- = =L - = = = 4 = + 9 4

= = 4

2

Tariff structures

3 ? ( ! - , &, = ! ; ! <4 = ) = 4 ) 0 0 4 = 4 0 0 0

Table 1.31: Status on Time of day tariff and special tariff for promotion of renewables introduced by the Commissions through their tariff orders

S.No. States Applicable 1 2 3 4 5 6 7 8 9 Andhra Pradesh Assam Delhi Jharkhand Kerala Maharashtra Madhya Pradesh Uttaranchal West Bengal S O U R C E TERI compilation X X Time of Day/Time of use Tariff Category NA HT industry; Tea, Coffee & Rubber; Oil & Coal NA HT & EHT categories HT & EHT categories HT industry; HT Seasonal Industry; Water works; General Motive Power All HT consumers Industrial and Commercial Industrial; HT commercial & HT Public Utilities Services (Optional) X Special tariff for promotion of renewable Applicable X

X X X X X

@ I

4 *

) = =

@ 6

4

) = 0

TERI Report No. 2006RP23

42 Analysis and compilation of tariff orders ( $ 4 CE *J 6 = = D ($ ) 4 = L = 4 = 9 2 2 . = 2 0 = 4 ! ! 0 < = % ! ! ; 3 I = = - I ) H! = 0 = 0 ? I / 3 $ A / 4 $= ! @ = L = ! = I =

0 = ! 3 ! ! 4 0 A/ ) A/ )

. 3 @ @ @ -

= J . A / = = J , 0A 3 4( = S - P $ 4

TERI Report No. 2006RP23

43

Analysis and compilation of tariff orders

= , 0A

&

-J N

/$ 5

13

Average tariff

- ,& 3 =

Table 1.32: Details of financial health of all utilities in India

Energy sold/ Energy available Loss or sale of electricity (Rs. Crore) Average cost of Supply (paisa/unit) Avg. Tariff (paisa/unit.)

OURCE

3 4

FY 2000-01 67 297600 334.53 229.89

FY 2001-02 66 30427 352.60 243.73

FY 2002-03 66 36203 354.46 264.11

FY 2003-04 67 26983 361.00 274.29

FY 2004-05 68 27729 359.99 276.54

S

www.infraline.com

= = % = C 0 - D=

-

4 & = 9 4 ) C 3

4 *+ )

= $ = CE J = 3 - , && = CE 6J

=

Table 1.33: Average tariff across various consumer categories

S. No. States Domestic 1 2 3 4 5 6 Andhra Pradesh Assam Delhi Jharkhand* Kerala Madhya Pradesh 2.4 3.57 2.8 1.49 1.77 3.09 Average tariff (Rs./kWh) Commercial 5.7 5.39 6.12 4.52 3.90 (HT) 6.73 (LT) 5.64 Industry 4.41 (HT) 4.03 (LT) 4.19 5.38 3.98 to 5.09 3.97 (HT) 4.03 (LT) 4.39 Agriculture 1.69 (HT) 0.053 (LT) NA 1.56 0.58 4.55 (HT) 0.92 (LT) 2.15

13 Concession available only to villages notified as snowbound/snow line villages by the concerned District Magistrate

TERI Report No. 2006RP23

44 Analysis and compilation of tariff orders

7 8 9 Maharashtra (2006-07) Uttaranchal West Bengal 1.44 (HT) 1.76 (LT) 1.52 (PTW) 1.50

3.08 1.93 2.67

4.4 3.21 4.45

2.92-3.17 3.03 4.08

* Figures pertain to tariff in FY 2003-04 as there has been no tariff revision after that. S O U R C E TERI estimates

- , &* 9

=

=

= CE

= *J 6 ;<

Table 1.34: Overall average realisation and average costs in 9 states under study

S. No. States Overall average realisation Rs/kWh 1 2 3 4 5 6 7 8 9 Andhra Pradesh Assam Delhi* Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal** West Bengal 2.33 4.45 3.97 3.49 3.19 2.94 3.23 3.59 3.05 Overall average cost Rs/kWh 3.00 5.18 3.51 7.14 4.02 4.12 3.39 3.93 3.46

*Approved figures **Actual for FY 2003-04 S O U R C E TERI estimates

- = =

-

=

-

0 % = 3 = = 3 ) I ! CE ;A$J 4 A $ 3 - 6 * T;) D < . ) CE &J * CE 6J = = ) = 4 $ ? 4 = = - , +9T *+T = @ 4 & * T4 A$ A / 4 =

TERI Report No. 2006RP23

=

= = -

2 3 = = )

= 4 A 4 = 4 = 4

. =

D=

&J * CE = <

6J

45

Analysis and compilation of tariff orders

!

CE *J 6 CE 6J - * &+T 4 A$ CE 4 = =

* T *J 6 A$ CE =

A$ 6 *T 6J

Cross subsidy

3 = ) = 3 = ) VW# ; A ) V) = V = H VH= C V = = 2 4 3 ; 3 2 = 3 4 4 2 = 4 = = I = 3 ! ? = 3 = - , &6 . = I = = = = = = 4 = N < H - , M . = I 4 ) = = = 5 3 3 = = = 4 N H 3 = = 3 L = ) C = 4 4 3 L = =

X <J,' ;C N C <Y

3 L = L ; N 0A < ; ) < ; N 0A <

3

- = -

TERI Report No. 2006RP23

46 Analysis and compilation of tariff orders

Table 1.35 Trend in CI from FY 2003-04 to FY 2005-06

S. No. 1 2 3 4 5 7 7 8 9 States Andhra Pradesh Assam Delhi Jharkhand*** Kerala Madhya Pradesh Maharashtra (2006-07) Uttaranchal West Bengal Trend in CI Improvement Improvement Deterioration Improvement Deterioration Improvement Improvement Improvement Improvement

S O U R C E TERI estimates

H 4 @ J

9 4 $ ) ( = = L

4 4( 0 CE < 4( J , * CE

* $ 4 CH 6J ;CE

2

= 4

Trading

&, ! - 4 - ) ) 4 - ,& = =

Table 1.36 List of company/firms who have been granted licence for inter-state trading in electricity (as on 12th December, 2006)

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name of applicant Lance Electric Utility Ltd. Vinergy International Private Ltd. Tata Power Trading Company Ltd. PTC India Ltd. DLF Ltd. Adani Enterprises Ltd. Reliance Energy Trading Ltd. NTPC Vidyut Vyapar Nigam Ltd. Chhattisgarh Electricity Company Ltd. MMTC Ltd. GMR Energy Ltd. Jindal Steel & Power Ltd. Karam Chand Thapar & Bros. (Coal Sales) Ltd. Subhash Kabini Power Corporation Ltd. Special Blasts Ltd. Maheshwary Ispat Ltd. Instinct Advertisement & Marketing Ltd. Date of Issue of Licence/Status/Category F-Category B-Category F-Category F-Category A-Category F-Category F-Category F-Category A-Category C-Category A-Category A-Category A-Category A-Category A-Category A-Category A-Category

TERI Report No. 2006RP23

47

S.No. 18 19 20 21 22

Analysis and compilation of tariff orders

Name of applicant Essar Electric Power Development Corporation Ltd. Suryachaktra Power Corporation Ltd. JSW Power Trading Company Ltd. GEA Energy System (India) Ltd. Malaxmi Energy Trading Pvt. Ltd.

Date of Issue of Licence/Status/Category C-Category A-Category F-Category F-Category A-Category

S O U R C E www.cercind.org (accessed in February 2007)

= ,*,++ (@ CE 6J H = 4 6+ 9 T - $) 5 3 5 ; , T<4 $ F ) F 5 ;,, 6+T<4 $ ) ;* 6T<4 5 ;& * T<4 . ? - $ ) 5 ; 9T< 5 @ 5 ; +T< = ,, + (@ CE &J * ,*,++ (@ CE 6J 9TC CE J B = - ,6 (@ = T &J * *J 6 T *J 6 6J 2 = 4 = , 9+T ,& , &+ = = &J * 6 T 6J

14

&, ( 0

4

- =

CE

6J

Table1.37 Buying entities in FY 2005-06

S.No. 1 2 3 4 5 6 7 8 9 Name of the buying entity MSEB/MSEDCL MPSEB TPCL DTL APPCC/APTRANSCO ASSAM WBSEB UTC CESC/CESE Volume of electricity bought from Traders (MU) 3308.85 2387.74 447.80 408.10 175.35 155.11 106.92 60.40 59.68

S O U R C E www.infraline.com (accessed in February 2007)

14

www.infraline.com. Accessed during February 2007

TERI Report No. 2006RP23

48 Analysis and compilation of tariff orders

Table 1.38 Selling entities in FY 2005-06

S.No. 1 2 3 4 5 6 7 8 9 Name of the selling entity WBSEB APPCC/APTRANSCO JTPCL KSEB/KPCL CESC/CESE (DL) ASEB MPSEB UPCL Delhi Transco Ltd Volume of electricity sold to traders (MU) 3063.74 1199.93 828.20 771.73 374.19 256.30 141.23 96.40 48.00

S O U R C E www.infraline.com (accessed in February 2007)

@ 2 @ 0 = 4 . = I 0 2 = = 4 = = = = 4 0

= %

Electricity duty

- , &9 6J = = CE

Table 1.39 Electricity duty collected

S.No State Electricity duty collected 1Z 2S 3 4 5 6 7

O U R C E

Subsidy received

Electricity duty collected as a percentage of subsidy

Andhra Pradesh Assam Delhi Jharkhand Kerala Madhya Pradesh Maharashtra Uttaranchal* West Bengal

124* 14.33 218 NA 58.6 285* 1033* NA 197.5

1599 49 138** 40 51.31*** 667 1564 0 19.96

8 29 158 114 43 66 989

8w 9w w

.infraline.com ** Provided to Transco (does not include subsidy provided on account of roll back of tariff) ***Remains unpaid

TERI Report No. 2006RP23

49 = = )

Analysis and compilation of tariff orders

- = ;$ 5 C)<

= $ = $ C) = = 4 = 4! G. 69T A

15

C -

= = $ C) = = +T 2 $ =

T D% -

4 , T4 $ % @ $ , T ,6T4 ? 0 4 & T ( $ 4 % & T D% 69T 0 ( 4 B = = =

G -

C

4

4

=

-

L

Recent developments in regulatory practice Multi-year tariff (MYT)

= = = 3 = ; H < J J = = 0 4 = = ;)H. < = J J = = = -

15

This analysis was carried out for 28 utilities out of 39 power utilities selling directly to consumers for the year 2004-05 for which the data is available. The Power Departments of 9 States were excluded as no subsidy element is involved.

TERI Report No. 2006RP23

50 Analysis and compilation of tariff orders A ) ) = " * (E ( ! 4 0 0 2 -% = < " 0 = = ( I N + = - = /' 0 " o . 7 4 o = = 4 C = o D = = 0 7 (E 3 4 (E 0 0 3 4 0 !C = = (E 0 = (E 0 = 04 = (E = ! (E = 0 = 4; < ;-< = # = " 3 (E = 4 = 4 -% = = (E ; -% = 3 ;. ) < H 3 = = (E 4 = I . 3 4

L

TERI Report No. 2006RP23

51

Analysis and compilation of tariff orders

0 (E

I 0

(E 0

= = (E = 4 =

= 3 -

I = (E = = 4 = -

(E

2

= 4 = -

=

0

= -

2 -

4

(E =

. 0 4 2 4

(E 0 -

= 0

"

= =

=

3 = = L / (E = 0 S = P (E 0 % S = P

TERI Report No. 2006RP23

52 Analysis and compilation of tariff orders

Box 1.2: Experience of United Kingdom ­ Role of OFGEM, (Office of Gas and Electricity Markets) United Kingdom (UK) was one of the first countries to implement `Performance based Regulation' through a `Price Cap Regulation'. The Price Cap method of tariff calculation separates the profits of the regulated utility from its costs by setting a price ceiling. The method is commonly referred to as the `RPI-X' model and has been used in UK for more than a decade. In this method, for each rate period, which normally varies between 3-5 years, the price for each year is set based on the Retail Price Index (RPI) and an efficiency factor X. Prices remain fixed for the rate period and the utility keeps or shares the achieved cost savings. In price cap regulation, the regulator determines the ceiling on prices that can be charged by the distribution companies for various classes of consumers (usually there are only a few classes). Within the cap the utility is free to charge lower to maximize revenues and profitability or to respond to competition. There are 14 electric distribution companies (discoms) in the UK. The total revenue of these discoms along with the associated prices for using their networks is regulated by the Office of Gas and Electricity Markets (OFGEM). The total revenues that a regulated discom is allowed to recover from its prices through the price cap mechanism is that it sets an initial starting values for revenues (po), specifies an exogenous input price index for adjusting revenues for input price inflation and the associated price levels over time (RPI), and a productivity factor `x' which further adjusts revenues and profits over time. The po and x values are determined based on a review of the relative efficiency of each firm's operating costs, the firm's current capital rate base, referred to as the firm's regulatory asset value (RAV), forecasts of future capital additions, estimates of the cost of the firm's debt and equity capital, assumptions about the firm's debt-equity ratio, tax allowances and other variables. The allowed revenues for the firm over the 5-year period are the sum of the allowed operating costs and allowed capital costs determined in each year. Po and x are chosen so that the present discounted values of the revenues over the five-year period is equal to the present discounted value of the total operating and capital-related charges that have been allowed for each discom during the price review. Carrying charges on the existing RAV plus the carrying charges on allowed levels for future

Issues and experience of MYT setting process in India

( C 4 4 (E 4( 0 H 0 = = TERI Report No. 2006RP23

J $

0 ,;< (E $ 4 4 4 ( $ / = D% 4H &

0 = .- I = $ 4 4? ! 4> 0 4? (E = (E A 3

A 3

=

53 4

Analysis and compilation of tariff orders

-

= ( 3

% 0 0 3 3

% = 4

= = 0

= A = -

- = 4 -

3 3 =

=

= P 4 4 3 2 J 4 0 I % 0 4 = =

= I -

I =

(E I = = = . 0 ! 3 4 -

= -

3 J = 3 = 3 . ) (E

- HCD (

@?

J! = -

0 . ) (E = = 4 0

I . ) = = 0 5 0 G ) 4 0 (E I I C 04

TERI Report No. 2006RP23

%

=

0 I =

4 -

(E P

54 Analysis and compilation of tariff orders 4 o 4 4 > = 4 C 0 = (E 3 = ( (E (E ) (E 3 ( o (E = = = o , T ) ( 0 o (E N 4 6 T 4 6T = 6T 4

TERI Report No. 2006RP23

= (E

= 4 0 4 =

$ ( 4! $ 4

0 -

4?

L =

J = N

N

4=

$

4 3 -

$

- ($ ) ; 4$ 5C4 < ;

< 4

3 ; 4 HG ( (E % -

4

<4

I =

-

4 0 = N (E %

N

-

55

Analysis and compilation of tariff orders

6 T 6 T o ( ,N & 4 ,N & ,N & C = ) @ P $ (E = = 3 3 = -% = = 3 3 = 3 4 . J = " . ) 2 = = 4 0 4 = 4 L 4 ,N & =

= A 0 ) 0 0

= = N =

. ) J J

3, ( > ) 0

$ A / 4 (E @ (E 4?

(E 4(

$ - !

4

Open access

& L / = = 4 4 = = J 0

TERI Report No. 2006RP23

4 4 = =

H . )

-

56 Analysis and compilation of tariff orders

H & Q

J ) J * J = J L J J = 5 = J =

;* <

R - ) . = J = J )

H >

$ 2 ( $

4 $ 4H [email protected] ; <

= 4 $ 4) 4> 0 4? 0 4( 4 $ % -4 % 4 4A / 4D % 4?

42 $ [email protected] 4!

4 4

= 4 0 J 4 4 . ) 3 .3 ( ) ( $ = L % $ 3

17

% = =

I

4 . ) = 16

= -

4 4D % [email protected] 4A / 42 4 H 4

4? 0 4 4> 0 4 4? 4 $ % -4

16 Section

17 Section

42 (2) of Electricity Act 2003 42 (2) of Electricity Act 2003

TERI Report No. 2006RP23

57

Analysis and compilation of tariff orders

$ 4 = $ = = = J $ - T = = = - , *4 J 4 0 = 9. ) , J,, J < 6T . ) % = = ; -

> ; < = 4 = = ;-< 3

3

= J 4

0 =

4

= = = =

= ) , & * 6 A ) D .. = H + 9 , 2 ,, . . . N $ < = "

H

)

;

=

3 . = ) . H J =

$

4

4(

$

A

/

TERI Report No. 2006RP23

58 Analysis and compilation of tariff orders - = ? > 0 . . . ) = = 9 = = ? = 4 = & 5 <B 4 0 ; = 4 4= = = ; <4 0 A/ ) . 4 2 ! 5)H / 0 > ) . ; . )H<4 = 4 > 0 . / ;> /< . 0 @ ! 4 = 4 = 4 = C =L 3 = 4? ,* 0 4( , *, = I 4 % = = D% J . ) 4 % 4= J $ 4D % 4? 0 4 $ 4 L / 4 =L 4 4 = 4 4 4 4 = 3 . ) . H 4 =

-

(

TERI Report No. 2006RP23

59

Analysis and compilation of tariff orders

Table 1.40: Cross subsidy surcharge in Andhra Pradesh

State utilities APCPDCL Voltage level 33 kV 11 kV LT APEPDCL 33 kV 11 kV LT APNPDCL 33 kV 11 kV LT APSPDCL 33 kV 11 kV LT dated 29.08.07 % losses 4.21% 11.34% 22.37% 6.10% 10.85% 19.11% 5.45% 11.40% 21.24% 4.85% 10.34% 18.92%

Wheeling charges (Rs. kVA / Month ) 32.7 91.02 126.44 11.28 56.41 224 23.49 85.94 185.52 25.03 109.43 152.06

Cross-subsidy (Rs./unit) 1.30 1.62 1.94 1.26 2.06 2.06 0.21 1.78 1.20 0.33 1.48 1.66

S O U R C E APERC Order on determination of surcharge and additional surcharge for FY 2006-07

Table 1.41: Cross subsidy surcharge in Rajasthan, Karnataka, Gujarat, Tamil Nadu and Maharashtra

States Voltage Wheeling charge-HT % Losses EHT Rajasthan Jaipur Rajasthan Jodhpur HT ­ 33kV HT ­ 11kV LT EHT HT ­ 33kV HT ­ 11kV LT Rajasthan Ajmer EHT HT ­ 33kV HT ­ 11kV LT Gujarat Karnataka BESCOM MESCOM HESCOM GESCOM Tamil Nadu Maharashtra TPC D REL D MSEDCL 132 kV 33 kV 22 kV & 11 kV Nil 11 % 17 % Rs.kVA 150/ month Rs.kVA 35/ month Nil Rs.kVA 3/ month Rs.kVA 37/ month HT ­ 66 kV-33kV 6.12% 5.80% 9.21% 6.39% 6.00% Rs. 0.01 Rs. 0.16 Rs. 0.13 Rs. 0.13 Rs.0.20/unit Rs. 1.60 per unit 0 0 0 0 0 HT ­ 66 kV-33kV 4.60% 8.40% 13.40% 21.15% 4.60% 8.40% 13.40% 21.15% 4.60% 8.40% 13.40% 21.15% 10.01% Rate of wheeling Rs.0.01/unit Rs.0.25/unit Rs.0.28/unit Rs.0.77/unit Rs.0.01/unit Rs.0.15/unit Rs.0.17/unit Rs.0.58/unit Rs.0.01/unit Rs.0.22/unit Rs.0.23/unit Rs.0.54/unit Rs 74805 MW / Month Rs. 1.35 per unit Rs. 1.15 per unit Rs. 1.56 per unit Rs. 1.75 per unit Cross subsidy surcharge Rs. 1.55 per unit

TERI Report No. 2006RP23

60 Analysis and compilation of tariff orders

States Voltage LT Wheeling charge-HT Rs.kVA 113/ month Cross subsidy surcharge 0

SOURCE (1) Rajasthan Electricity Regulatory Commission order for determination of wheeling charges and crosssubsidy surcharge for FY 2006-07 dated 19.09.06 (2) Gujarat Electricity Regulatory Commission order for determination of transmission charge, wheeling charge and cross subsidy surcharge dated 28.02.06 (3) Karnataka Electricity Regulatory Commission order for determination of transmission charge, wheeling charge and cross subsidy surcharge dated 09.06.05 (4) Tamil Nadu Electricity Regulatory Commission order for determination of transmission charge, wheeling charge, cross subsidy surcharge and additional surcharge dated 15.05.06 (5) Maharashtra Electricity Regulatory Commission order titled Methodology for computation of Cross-Subsidy Surcharge for Open Access transactions dated 05.09.06

J % = SP

- =

, ( - = N 0A

3

= (

( L 0A 4 A 2

&& 6T

,, 0F = 4 0 = J - =

= * +, J = = 4 L -

0

6T A = = ( (. / ; < ;-< 0 3 ,&T 0 4 = = 0 < ,*4 (A

18

4 L 3 4 CE 96, (@ ; CE 4 ( ! 99 (A -

4 C J 4 3 J 4 9 = 0 ,, 9TB 4 (A

&, 6 (A 3 = I

- 0J

=

-

18 Presentation made by Mr. Ashish Khanna, The World Bank at the National Roundtable Discussion on Achieving Competition Objectives of Electricity Act 2003 ­ Consumer Choice through "Open Access in Distribution", 5th April 2006

TERI Report No. 2006RP23

61

Analysis and compilation of tariff orders

% ( = =

=

= 2 = 4

= -

D= 4 L $ . % - ,* 3 = 9 % ! ) 6 (A =

19

-

-

=

,

J = (A

5

( ;(. !)5<

19

MSEDCL, CII look to more captive power plants http://www.punescoop.com/story/2007/2/9/5285/13327 (accessed in February 2007)

TERI Report No. 2006RP23

62 Analysis and compilation of tariff orders

Table 1.42: Summary of Open Access Regulations and experience across 9 states

Date of Issuance of Open Access regulation Capacity sought to be allocated by the Open access consumer 5 MW and above 3 MW and above Above 1 MW 10 MW or above at 132 kV 5 MW or above at 33 kV. or above and situated in industrial growth centers 2 MW or above at 33 KV. or above and situated in industrial growth centers 5 MW and above and situated anywhere in state 1 MW and above and situated in industrial growth center 2 MW and above and situated anywhere in state 1 MW and above and situated anywhere in state 5 MW and above 3 MW and above 1 MW and above 10 MW and above 5 MW and above 3 MW and above 1 MW and above 25 MW and more 10 MW or more 1 MW or more Date by which open access shall be allowed 31-Dec-2005 31-Dec-2007 31-Dec-2008 16-Jun-2005 16-Jun-2005 1-Oct-2005 1-Apr-2006 1-Oct-2006 1-Apr-2007 1-Oct-2007 1-Jul-2007 1-Jan-2008 1-Jul-2008 1-Dec-2005 1-Dec-2006 1-Dec-2007 1-Dec-2008 1-Nov-2005 1-Apr-2006 1-Apr-2008 Yes Yes No Yes No Yes Mandatory open access to the Licensee's transmission system and /or distribution system shall be provided to any person generation electricity through renewable sources No No Yes As per Draft National Tariff Policy No No No Charges for open access Application seeking open access Open Access taking Place Remarks

State

Phase 1 2 3 1 2 3

Uttranchal

8-Jun-2004

Madhya Pradesh

24-Jun-2005

4 5 6 7 1 2 3 1 2 3 4 1

Delhi

3-Jan-2006

Kerala

2-Nov-2005

Jharkhand

28-Aug-2005

2 3

TERI Report No. 2006RP23

63

Analysis and compilation of tariff orders

State

Date of Issuance of Open Access regulation

Phase

Capacity sought to be allocated by the Open access consumer Consumers availing of power from NCE developers irrespective of the quantum of contracted capacity Contracted capacity being greater than 5 MW Contracted capacity being greater than 2 MW Contracted capacity being greater than 1 MW Power from Co-generation and Nonconventional source of energy 10MW and above in single premises 5MW and above 5MW in single premises 1MW and above in single premises 10 MW and above 7.5 MW and above 3 MW and above Not less than 5 MVA Not less than 2 MVA but less than 5 MVA Not less than 1 MVA

Date by which open access shall be allowed

Charges for open access

Application seeking open access

Open Access taking Place Remarks

1 Andhra Pradesh 1-Jul-2005 2 3 4 1 West Bengal 9-Jun-2004 2 3 4 1 Assam 1-Aug-2005 2 3 1 Maharashtra 10-Jun-2004 2 3

1-Sep-2005 1-Sep-2005 1-Sep-2006 1-Apr-2008 1-Aug-2006 1-Jul-2007 1-Aug-2008 1-Jan-2009 1-Apr-2006 1-Apr-2007 1-Apr-2008 1-Apr-2005 1-Apr-2006 1-Apr-2007 Yes No Yes No Mandatory open access to the Licensee's transmission system and /or distribution system shall be provided to any person generation electricity through renewable sources

S O U R C E TERI Analysis

TERI Report No. 2006RP23

64 Analysis and compilation of tariff orders

Renewable Portfolio Standard (RPS) regulations and orders

. ) & . ) . ,; < " = . . + 3 , - . ) = =

, = 4 ; < "J

) 4 4 J -

4

4 4

-% -

B R

.

+ ;,< ; <

Q

7 = 4 4 4

-

=

-

R

C

4 3J

$

Q . = ) 4 J = = 4 R ) . ) J = - . ) $ .

J =

= 0 4

TERI Report No. 2006RP23

65

Analysis and compilation of tariff orders

& $

$

4

* ) J ;,< $

J

= " = ) 3 0 + ;,<; < 4

= . )

. 0 4 ) ,4 = J = -

9 = - , *&

-

S.No. 1 2 3 4 5 6 7 8 9

Table 1.43: Status of issuance of RPS Regulation

States Andhra Pradesh Assam Delhi Jharkhand Kerala Maharashtra Madhya Pradesh Uttaranchal West Bengal - Issued; X ­ Not issued

Status of final regulation X X X Order issued X

S O U R C E TERI Compilation

C (

$ A 4 =

. ) 4 A / . ) . ) =

4 = = 9

$

4?

4 $ .

$

4( =

$ - , **

?

-

TERI Report No. 2006RP23

66 Analysis and compilation of tariff orders

Table 1.44: Technology specific standards

S.No. 1 2 3 States Andhra Pradesh Kerala Madhya Pradesh Technology specific standard 5% (0.55 for wind) 5% (2% for wind) 0.5% (Wind)

S O U R C E TERI Compilation

(

) J

CE CE 9J, = - , *6

Table 1.45: Renewable purchase specifications fixed by MERC

Year FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 RPS 3% 4% 5% 6%

S O U R C E http://mercindia.org.in/orders_2006.htm <accessed in December 2006)

D ,*

4 A/

) = -

Table 1.46: Renewable purchase obligation fixed by WBERC

Licensee WBSEB CESC Ltd The Durgapur Projects Ltd. DPSC Ltd. Purchase obligation FY 2006-07 FY 2007-08 1.9% 1.02% 0.72% 0.43% 3.8% 2.03% 1.4% 0.95%

,4 4

. ). =

-

. ) -

TERI Report No. 2006RP23

67

Analysis and compilation of tariff orders

Way ahead

, I . @ J 2 42 $ 4 0 = 3 = -

Q 4 = ) I 3 - 0 R * = = & 4 2 = - = $ J 4 3 ) = J = = ( . - 04 / ;(. /< = 3 4 D=

TERI Report No. 2006RP23

4 I ( F = - L ! = -

= 3

I

=

0 =

= ,, T . ,

6 *T

I = 4 - I = A 3 $ =

(

= 4

0 = )

68 Analysis and compilation of tariff orders 0 $ = = & = = $ * = = & 0 = = = 2 = 4 = = = 4 = = = I 3 = $ = = = = / @ ( 3

4

= = = = = = ; . . ) = 3 D= ! $ = < $ ) 0 = = = 4 TERI Report No. 2006RP23

= = /

=

Q ;

0< R -

0

-

-

4

! =

L

I = -

L =

69

Analysis and compilation of tariff orders

= - . = 6 0 0 = = D= = 4 % $ $ ! E %

-

D= L

. /P = %=D =

D

F

4 =

. 4

-

= = 5 = = = = $ = 4 $ = = - = 2 = 4 @ ( 2 = = 4 = = =

) 3 " = + C 4 0 4

TERI Report No. 2006RP23

$2 = 4 )

-

! $J&T 0 = ) 3 =

) 0 -

70 Analysis and compilation of tariff orders = ) - % 0 3 9 0 = = / ) 0 . = 4I C 0 4 4 3 I I -

,

/ C 0 .

0 3 = / 4 0 = 4 D% $ J 6T4

,,

0 =

D= 2 = 4 (

= 3 ! = D% 0

0 0 = 0 CE , 3 ) 0 )H 0A 6J = 3 D / ;D % 3 = = I 4 -

0

/ -

<4

4 3

,&

= 3

TERI Report No. 2006RP23

= = 4

71

Analysis and compilation of tariff orders

= 0 3 J = = 3 H 3 = = 0 ;H ! = = < = -

I 0 3 4 = 4 = 4 4 3 0 = H )! ) J H 4 3 J 4-

4 3 0 -

0

-

,* ..R 4 4 4 2 D= S P 3 = 4 D= 0 4 = = 4 0 4 <0 = 4 0 Q

Q

4 Q

-

R 4 0 4 4 0 4 ;

= =

TERI Report No. 2006RP23

72 Analysis and compilation of tariff orders

TERI Report No. 2006RP23

73

Analysis and compilation of tariff orders

Annexure 1.1 Detailed description of MYT regulations issued by different SERCs

States Regulation Control Period First Year of Control Period Generation/Transmission/D istribution/Retail Supply Contents of MYT filing Controllable Factors Uncontrollable factors Targets and Trajectory for controllable factors Targets are to be set by the Commission for O&M costs, financing costs and distribution losses; Trajectory for specific variables ' be set in case may' performance can be improved through incentives/ disincentives A loss reduction trajectory is required to be submitted by the licensee for each year of the control period; if the divergence in losses is more than 10% of the initial assumption of losses, Commission will make suitable adjustments based on a review study undertaken by a third party Sharing of gains and losses Incentives/ penalties

Andhra Pradesh

First control period = 3 years and subsequent control period = 5 years

FY 2006-07

Separate MYT framework regulation for (a) wheeling and retail sale of electricity and (b) transmission

Components of ARR separately mentioned for Distribution Business, Retail Supply Business and Transmission Business

1.Operation and Maintenance expenses, 2.Return on capital employed, 3.Depreciation, 4.Non-tariff income

1.Taxes on Income, 2.Cost of power purchase

Assam

Generation = First control period, 5 years from 1st April 2006; Transmission = First control period, 3 years from 1st April 2006; Distribution = First control period, 3 years from 1st April 2006

FY 2006-07

Single MYT framework regulation for G,T,D with separate components of ARR specified for generation, transmission, bulk supply and distribution

Components of ARR separately mentioned for Generation (thermal and hydro), Transmission, Bulk Supply and Distribution Business

Not specifically mentioned

Not specifically mentioned

No specific mechanism specified; only aggregate gains or losses for the control period as a whole will be considered by the Commission Gains = 50% of additional profit earned from all sources to be retained by licensee/ generating company, 25% to be credited to the contingency reserve of licensee/ generating company, 25% to be passed on to consumers; such gains are to be shared at the end of the control period; In

Incentive/ penalty in the case of transmission losses has been indicated

Incentive specified in case transmission licensee achieves weighted annual availability beyond the target availability as per a specified formula; incentive to be payable by distribution licensee and open access customers in the ration of their average contracted transmission capacity for the year

TERI Report No. 2006RP23

74 Analysis and compilation of tariff orders

States

Regulation

Control Period

First Year of Control Period

Generation/Transmission/D istribution/Retail Supply

Contents of MYT filing

Controllable Factors

Uncontrollable factors

Targets and Trajectory for controllable factors

Delhi

(draft)

First control period = 4 years and subsequent control period = 5 years

FY 2007-08

Separate MYT framework regulations for generation, transmission and Wheeling & Retail Supply

Components of ARR separately mentioned for Generation tariff, Transmission tariff, Wheeling tariff and Retail Supply tariff

1.Availablity of transmission system, 2.Transmsission loss, 3.O&M expense, 4.Financing cost, 5.Depreciation and 6.Quality of supply

Not specifically mentioned

Performance targets are to be set for availability of transmission system, transmission loss, O&M expense, financing cost, depreciation and quality of supply

Sharing of gains and losses case of distribution losses, distribution licensee shall be allowed to retain 50% of gains arising out of higher loss reduction than target and 50% shall be passed on to consumers Wheeling and Retail Supply: Aggregate profits after annual adjustments will be shared annually as, 1/3 of the gain to be shared with consumer, 1/3 of gain to be credited to tariff control reserve and 1/3 to be retained by licensee; Transmission: profit sharing formula is to be applied on aggregate profits and losses on account of

Incentives/ penalties

Incentive specified in the event of implementation of intra-state ABT @ 25 paise/kWh for ex-bus scheduled energy

TERI Report No. 2006RP23

75

Analysis and compilation of tariff orders

States

Regulation

Control Period

First Year of Control Period

Generation/Transmission/D istribution/Retail Supply

Contents of MYT filing

Controllable Factors

Uncontrollable factors

Targets and Trajectory for controllable factors

Sharing of gains and losses individual controllable factors are not to be included, no cap is imposed on profits

Incentives/ penalties

Jharkhand

(draft)

First control period = 3 years and subsequent control period = 5 years

Not specified

Single MYT framework regulation for G,T,D with separate components of ARR specified for generation, transmission, distribution and retail sale

Kerala

First control period = 3 years and subsequent control period = 5 years

FY 2007-08

MYT framework regulation specified for Distribution and Retail Sale of electricity

Components of ARR separately mentioned for Generation, Distribution Business, Retail Supply Business and Transmission Business Components of ARR separately mentioned for Distribution Business, and Retail Supply Business

1.Capital expenditure variations, 2.AT&C losses including bad debts, 3.R&M expenses, 4.A&G expenses, 5.Employee cost, 6.Interest charges, 7.Return on Equity 1.O&M expenses, 2.Return on Equity,3.Depreci ation, 4.Nontariff income

Force Majeure events, changes in law, inflation rate, taxes and statutory levies 1.Power Purchase costs, 2.Expenses on account of inflation, 3.Taxes on Income

Trajectory will be specified by the Commission from time to time which may cover one or more control periods for specific parameters

Gains = 1/3 to be passed as rebate in tariffs, 1/3 to be retained in special reserve, balance amount to be utilized at the discretion of the utility; Losses = 1/3 to be passed on as an additional charge in tariff and balance to be absorbed by the utility

Not specified

Not specified

No specific mechanism specified

Not specified

TERI Report No. 2006RP23

76 Analysis and compilation of tariff orders

States

Regulation

Control Period

First Year of Control Period

Generation/Transmission/D istribution/Retail Supply

Contents of MYT filing

Controllable Factors

Uncontrollable factors

Targets and Trajectory for controllable factors

Sharing of gains and losses

Madhya Pradesh

First control period = 3 years

FY 2006-07

Separate MYT framework regulation for (a) generation, (b) transmission, (c) wheeling and retail sale of electricity

Components of ARR separately mentioned for Generation (thermal and hydro), Transmission, Wheeling and Retail supply Business

Not specifically mentioned

Not specifically mentioned

Target norms set for thermal generating stations viz. availability, PLF, gross station heat rate, secondary fuel oil consumption, auxiliary consumption; Transmission system availability fixed at 97% for first 2 years of control period and 97.5% for the last year, O&M expense targets specified for transmission and distribution (to be split between wheeling and retail sale activity) business, distribution loss targets

Gains = Transmission licensee shall be allowed to retain 50% of additional gains and 50% shall be passed on to consumers; Distribution licensee allowed to retain 50% of profits and no specific mention of treatment of remaining 50%

Incentives/ penalties Target PLF values eligible for incentive specified for each year of first control period; Incentive specified in case transmission licensee achieves weighted annual availability beyond the target availability as per a specified formula; incentive to be payable by distribution licensee and open access customers in the ration of their average contracted transmission capacity for the year; Rebate to consumers for maintaining appropriate power factor, achieving higher load factor or for implementation of energy conservation measures and seasonal surcharge/Time of use surcharge, power factor/load factor surcharge and reactive energy charges to be specified by the

TERI Report No. 2006RP23

77

Analysis and compilation of tariff orders

States

Regulation

Control Period

First Year of Control Period

Generation/Transmission/D istribution/Retail Supply

Contents of MYT filing

Controllable Factors

Uncontrollable factors

Targets and Trajectory for controllable factors

Sharing of gains and losses

Incentives/ penalties Commission

Maharasht ra Uttarancha l

First control period = 3 years and subsequent control period = 5 years x

FY 2006-07

Single MYT framework regulation for Generation, Transmission, Wheeling and Sale of electricity

Components of ARR not separately mentioned for G,T&D

1.Capital expenditure variations, 2.AT&C losses including bad debts, 3.Number of mix of consumers, variations in working capital requirements and labour productivity

Force Majeure events, changes in law, inflation rate, taxes and statutory levies, cost of power purchase

The Commission "may" specify a trajectory for determination of tariff of a generating station

Gains = 1/3 to be passed as rebate in tariffs, 1/3 to be retained in special reserve, balance amount to be utilized at the discretion of the utility; Losses = 1/3 to be passed on as an additional charge in tariff and balance to be absorbed by the utility

Not specified

TERI Report No. 2006RP23

78 Analysis and compilation of tariff orders

States

Regulation

Control Period

First Year of Control Period

Generation/Transmission/D istribution/Retail Supply

Contents of MYT filing

Controllable Factors 1. Repair and Maintenance expenses, 2. Administration and General expenses, 3. Return on Equity, 4. Depreciation, 5. Non-tariff income

Uncontrollable factors 1. Fuel cost, 2. Power Purchase cost, 3. Employee cost, 4. Interest rate and finance charges, 5. Energy Sales volume, 6. Rate of interest on working capital

Targets and Trajectory for controllable factors Trajectory will be specified by the Commission during the control period for specific parameters viz. station heat rate, PLF, Auxiliary consumption, Oil consumption rate,T&D losses

West Bengal

(draft)

First control period = 1 year; Second control period = 3 years; Subsequent control periods = 5 years

FY 2007-08

Single MYT framework regulation for Generation, Transmission, Wheeling and Sale of electricity

Components of ARR not separately mentioned for G,T&D

Sharing of gains and losses No specific mechanism of sharing gains/ losses; any variation arising out of controllable factors is to be borne by the licensee/ generating company

Incentives/ penalties From time to time the Commission is to specify the set of performance target on different parameters for incentive; such norms are to be applicable from the second control period

TERI Report No. 2006RP23

79 Analysis and compilation of tariff roles

TERI Report No. RP23

80 Analysis and compilation of tariff roles

Anexure 1.2 Executive summary of study undertaken by

TERI for FOIR on tariff orders in 2002

Background

3 = = < < . ) ;. = G ; ! 4= J 4 4

0 = B =

= -

) = -

-%

= -

I

Objective

4 I 3 0 . ) 4 -% = = 0 J 4 3 -% = . ) 4 = ) 4

= =

" -

-

J J

=

-

=

-

Constraints

4 3 4 =

TERI Report No. RP23

81 H

Analysis and compilation of tariff orders

0

0 4

J 4 = J -

J

C I = 0

4

J

0

C 3 .

4 = = =

L =

0 4

Approach

4 0 4( = = C . 4 4 $ % @ , = ) I < = = L 4 G ! 4 = ; 9T = $ 42 @ $ 4 = -

?

4

&

/

4 -

. )

Regulatory process

@ 0 4 = C I . ,99+4 L ) ;& H < = . ); J% ) < 4 4

TERI Report No. RP23

82 Analysis and compilation of tariff orders ; 4 = ) ,99+< &<4 = = = ) = = 4 ,99+ ; = -

= 0 = N &4 $ ) 0 = 4 C @$ ) ;@ < =

3

4

=

) )

$ ); < < P 2

? = 4 L

$ ) ;?

0 . ) = S ( % J

@ 3 3

4 ;C ,< = -

<31 December

15 January

25 January

<25 March

25 March

1 April

Undefined

60 days 90 days

? days

7 days

Tariff and revenue projection filings

ERC Deems: Revenue projection complete Tariff filing complete

ERC order

Public Notice

New tariffs effective

Figure 1 Timeline for tariff determination

( 3 4

TERI Report No. RP23

-

0 =

83

Analysis and compilation of tariff orders

4 = 0

. )

= 0

L H J 4

J =

-

- ,

Table 1 Time taken for issue of the first and second tariff order in different states

States Andhra Pradesh Haryana Karnataka Maharashtra* Madhya Pradesh Uttar Pradesh Average Date of filing for the first tariff order 06 April 2000 31 December 1999 06 July 2000 15 Oct 1999 07 April 2001 31 December 1999 Months taken 2 12 6 7 5 7 7.3 months Date of filing for the second tariff order 30 December 2000 31 March 2001 26 November 2001 31 August 2001 20 May 2002 22 January 2001 Months taken 3 4 5 8 6 7 5.5 months

*MERC vide letter 38 of 2002/2004/2436

Regulatory approach towards annual revenue requirement

" · G ! 4 · 4 = N% B - = 4 4 = I 4 B U U = = 4

·

G ! = 4

T&D losses

$ G ! < . ) 4 4 C = 2 4 0 = 4 0 ; = = 2 = 4 G ! =

4 $ ) = - . ) G ! C )

= J = 4 ( ) ;( < =

I

TERI Report No. RP23

84 Analysis and compilation of tariff orders .- I (. / ;( = G ! = L

4 . = /

4( <

) =

3 G !

. (

) 4 = = = 3 G ! G ! = 0 - = = 0 @ G 5 ! $ = =

! 0 J

4?

0 4 =

3 4 . ) =

. / 3 ,

L

Box 1 T&D loss measuring approaches and methodologies

States Transmission and distribution measuring approaches Andhra Pradesh Extra high tension loss study conducted Use of proxy measure in terms of efficiency gains Delhi Gujarat Haryana Karnataka Maharashtra Orissa Punjab AT& C (aggregate [technical and commercial]) approach Separate T&D losses estimated. Metering at feeder level to estimate agricultural demand Individual estimation of T&D losses T&D (transmission & distribution) losses assessed separately Unmetered consumption through sample metering20 Zonal level Energy audits for all circles/ zones Pilot study by taking a sample of feeders Sample metering to verify agricultural consumption Madhya Pradesh Limited sample study to verify agriculture consumption

Power purchase

. ) = L = < J = $); $ =

20

4 C 4 , *< N 9N & /

4 > ,+ 4 ;. "? )

=

TERI Report No. RP23

85

Analysis and compilation of tariff orders

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Maharashtra Haryana Karnataka Punjab MP UP HP Delhi GEB AP

3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

Power Purchase Cost

Per unit of sale

Figure 2 Power Purchase cost across different States (2001-02)

C

C 2 D%

= $ % $ <$ % -4 4 4-

; C -% 4 ) = @ )

= -

3 @$ ) < @$ )5 ;@ $ $ ; ) $ ) / ) = $ ) = ;? 0 $ ? ) = ; / = $ /$ ) $ $ ) = ) < 4 $ $ %

@ $ $ ; $ $ ) ) <

& 6 3

=

-

?$ )5 5 < P$ $ /$ ) 3 $ $

TERI Report No. RP23

PPC per unit of sale

PPC as a % of total cost

5 <

86 Analysis and compilation of tariff orders

Employee cost

) = = = = L

Employee cost as a % of total cost 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Karnataka Maharashtra AP Haryana

= L <4 -

-

3 F. ;= 4 $ C &

1.20 1.00 0.80 0.60 0.40 0.20 0.00 Employee cost per unit of sale

MP

UP

HP

Punjab

Employee cost as a % of total cost

Delhi

Per unit of sale

Figure 3 Employee Cost across different sates (2001-02)

=

C

& 2 $ $ C 2 4

GEB

, , 6 $

- $ % -

Depreciation

H 0 = =

10 9 8 7 6 5 4 3 2 1 0 Karnatka Madhya Pradesh Andhra Pradesh Maharashtra Haryana Uttar Pradesh

% = = -

-

0 C *

%

Figure 4 Depreciation rates for 2001/02

TERI Report No. RP23

Himachal Pradesh

Punjab

Delhi

87 -

Analysis and compilation of tariff orders

C -

* =

= . )

&T H = B 4 C 6 &T H 6T= = - = 4 2 $ % 4 L I

= L 4 4

$ I

Bad debts

= = ) J = 0 = . ) = = = L -

.

Compliance by the utility

( = J · 0 / 4 A = 3 4 J 4 J A = 0 0 = 4 = J = 4 4= %

· ·

·

Regulatory effectiveness

=

TERI Report No. RP23

- % G ! 4

=

88 Analysis and compilation of tariff orders = J 0 4 = $ -% = = B = 2 = ? ? 0 4 )P C = 4 = = -% 4 4 ? 0 4 3 4 = = 4 L 4

@

T&D losses

/ = H G ! = 4 G ! = = -

Table 2 T&D losses across different states

Prior reforms** Andhra Pradesh 18.90 -APCPDCL Karnataka* 18.90 Haryana 28.50 Maharashtra Uttar Pradesh Madhya Pradesh Orissa Punjab 15.30 22.60 20.10 23.80 18.30 1999/00 35.20 38.00 48.96 29.00 41.55 46.90 2000/01 33.90 44.33 36.50 47.67 39.40 41.40 47.17 46.90 2001/02 31.49 35.01 34.10 44.52 33.2*** 38.76 49.00 50.50 27.52 2002/03 28.84 23.00 31.9 2003/04 24.63 19.19 30.89

33.60

25.61

* KERC vide letter A/09/03 dated 29.12.03 ***Commission approved S O U R C E Planning Commission SEB Annual report (1994-95)

-

-

G !

0 = 4 4 4= 3 G !

TERI Report No. RP23

89 -

Analysis and compilation of tariff orders

$ 3

$ !5 ;) )$ 5 % 3

$ <

! ) $ )!$ !)5 = ** &&T &T N& ,9 ,9T &N *

N, $ )

-

Employee productivity

" -

4 = C L 6 =

Employee Cost per unit of sale over the years

0.6 0.5 0.4 0.3 0.2 0.1 0

2000

Andhra Pradesh Maharashtra Madhya Pradesh

2001

Karnataka Orissa

2002

2003

Haryana Uttar Pradesh

Figure 5 Employee cost per unit of sale over the years

3 = I = 4 = 4 4-

=

$

=

L 3 4

= 4 -

TERI Report No. RP23

90 Analysis and compilation of tariff orders

Number of consumers per employee 375 300 225 150 75 0 1999-00 Karnataka Madhya Pradesh 2000-01 Orissa Haryana 2001-02 2002-03 Punjab

Figure 6 Number of consumers per employee

4 = =

-

=

-

Tariff rationalization

L -% = = . ) / . 3 0 4. ) 0 =

-

. ) $ -

( H 4

4

2$ ) ;2

)

( ) 45 4 4 <

$ 3 / 3 <

= 4

4 4 - I = <

% H ;CE $ ) 2 ;2 &<4

5 ;5

TERI Report No. RP23

91 C

Analysis and compilation of tariff orders

. ) J )

L ? < L - I ) ;? 0

. = C L J 4 = = L J 0 =

4

4

J J =

= = 0

3 =

#$

= 4 -

J . ) J

=

4 4

;2 <4 4 -

-

0 = =

L

Agricultural tariff - % reflective of cost

60 50 40 30 20 10 0 2000 Andhra Pradesh Madhya Pradesh 2001 Karnataka Orissa 2002 Haryana Uttar Pradesh 2003 Maharashtra 21 19 14 42 40 52 43 29 28.5 24 20 14 51 48.25 30 25 20 18 31 21

Figure 7 Agriculture tariff as a percentage of cost Maharashtra Source: MERC vide letter 38 of 2002/2004/2436 dated 28.12.2004

211

= 0

4-

TERI Report No. RP23

92 Analysis and compilation of tariff orders

Industrial tariff (HT) - % of cost 210 190 170 150 130 110 90 2000 Andhra Pradesh Madhya Pradesh 2001 Karnataka Orissa % 2002 Haryana Uttar Pradesh 2003 Maharashtra 109 197 168 163 150 141 135.61 118 108 163 160 138 128.8 118 114 105 172

160 150 144

136

Figure 8 industrial tariffs as a percentage of cost Maharashtra Source: MERC vide letter 38 of 2002/2004/2436 dated 28.12.2004

C

C 4

+4 = = ) 3 =

;

= = =

3 < L L N H <J,' . N .Y X

) VW# ; A ) V) = V = . V. H VH=

3 L = = 4 ; = - , 3 I 4 ) -

L L

- &

4 =

N < H 3 =

TERI Report No. RP23

93

Analysis and compilation of tariff orders

Table 3 Convergence Indices for different states over the years

States Andhra Pradesh Haryana Karnataka Maharashtra Madhya Pradesh Orissa Punjab Uttaranchal Uttar Pradesh 1999/2000 0.9686 0.8283 1.1922 N/A N/A 0.0536 N/A N/A 0.6400 2000/01 0.5625 0.5000 0.8660 0.6059 0.6683 0.0671 N/A N/A 0.5684 2001/02 0.5183 0.5565 0.8049 0.3526 0.5501 N/A 0.1799 0.4131 0.4658 2002/03 0.5440 N/A 0.6720 N/A N/A N/A 0.0260 0.3701 0.4551

= J -

- & L

0 -

Government support and subsidy

= 3 L H 4 4 = = -

Table 4 Subsidies given by the state governments (Rs. Crores)

States 1999/00 Maharashtra** N/A Karnataka* 769 Haryana N/A Madhya Pradesh 0.53 Orissa N/A Uttar Pradesh N/A Andhra Pradesh N/A Punjab N/A 2000/01 745.82 1246 613 313.12 N/A 790 1626 N/A 2001/02 493.37 1872 763 279.45 N/A 950 1561 N/A 2002/03 833 1699 815 1675.5 N/A 850 1509 950

*S O U R C E KERC vide letter A/09/03 dated 29.12.04 **S O U R C E MERC vide letter 38 of 2002/2004/2436 dated 28.12.2004

TERI Report No. RP23

94 Analysis and compilation of tariff orders

CHAPTER 2 Andhra Pradesh

Introduction

$ ; $ ; $ D )H< 5 ; $ I 4 ,999 ; $ < . $ . )H< A 4 4 $ G/ 0 . 4 ) ! ; ) ) H ;! . )H( < CE < S . )H ! = ( J , P S P H 9 ! !. )H( 4 . 4 " $ A $ 4 4 ) ! = $ . )H $ ) = ,99+ / $ ) $ D ) ) C ,9994 ; $ /< . D ) $ )H J - < $

. $

( 4

$

4 $ ) . )H 4

5 ?

$ ! ) ; $$ !)5< 4? 4 L $ ! ) 5 ; $$ !)5< .0 0 4F 0 4 FL A D = , != $ ) $ ! ) 5 ; $ !)5< )$ ? 4( - 4 4( $ ! ; $$ . !)5< 4 $0 4 )

$ 4 0 $ ? 4 ? ) =

. 5 D $ ) . ;

4)

. < )H

TERI Report No. RP23

95

Analysis and compilation of tariff orders

; > = = 4 = / ( J CE +J 9< ;CE . J CE 4 ) $ J , 4 ) CE 6J & = 4. ,+6 ;,< ;

&

< 3 $ ,99+<

4 $ ) J ;CE CE

3

;CE J < +J 9<

Demand supply gap

, CE ,99+J99 = CE J 6J

Table 2.1: Actual power supply position (Net MU)

Year FY 1998-99 FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 Requirement MU 41958.0 45835.0 47792.0 48394.0 47223.0 48080.0 50416.0 52721.0 Availability MU 38293.0 42832.0 44055.0 44302.0 44014.0 46680.0 50061.0 52154.0 MU 3665.0 3003.0 3737.0 4092.0 3209.0 1400.0 355.0 567.0 Deficit % 8.7 6.6 7.8 8.5 6.8 2.9 0.7 1.1

Source: Power Sector Profiles (May 2006), Ministry of Power, GoI, Project Monitoring Cell Table 2.2: Peak Demand vs. Availability (MU)

Year FY 1998-99 FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 Peak Demand MW 6770.0 7209.0 8000.0 8585.0 8491.0 8679.0 8093.0 8716.0 Peak Met MW 6139.0 6366.0 6835.0 6873.0 6858.0 7769.0 7903.0 8542.0 MW 631 843 1165 1712 1633 910 190 174 Deficit % 9.3 11.7 14.6 19.9 19.2 10.5 2.3 2.0

Source: Power Sector Profiles, May 2006, Ministry of Power, GoI, Project Monitoring Cell

- = = CE 6J 4

J = = + T ;!. (<

$ 0 =

-

4 , ,T

=

=

H

CE ,99+J99 4 - !. )H( 4 0

TERI Report No. RP23

96 Analysis and compilation of tariff orders 9 &T 6J CE ,99+J99 ,9 9T CE ,J T

CE

Movement in Installed Capacity

,9+ , (A ! T2 ,* (A , &+ (A CE ,999J 4 96 6 (A ++69 9+9 & (A ) D $ (A CE 6J

) D 6 *T 6* (A

&6+ * (A J) D , *T

6J

4 H ,, T CE

4 J ,

4 CE 9&+ 9 (A ,T = , T CE 6J CE J , * 6 + (A

; , +T<

% 9 , (A ;,, 9T< CE 6J

FY 2000-01, FY 2001-02 and FY 2002-03 in retrospect

!. )H( = L CE J , CE = J & 4 4 &

Table 2.3: Performance of DISCOMs in FY 2000-01, FY 2001-02 & FY 2002-03

Energy Parameters Sales by DISCOMs (MU) T&D Loss Levels (%) Metered Sales/Total Purchases (%) Financial Position and Subsidy Profit of Licensees (Approved) (Rs Crore) Revenue Realized/Units Sold (Rs/kWh) Cost Incurred/Units Sold Rs/kWh) Cost Coverage (%) Additional Government Support Provided (Rs Crore) Cross Subsidy Cross subsidy amount (Rs. Crore) Cross Subsidy/subsidising unit (Rs./unit) FY 2000-01 26976.0 35.5% 38.1% -1024.0 2.1 3.3 62.5% 1133.0 1939.0 2.1 FY 2001-02 28556.0 29.8% 42.7% -876.0 2.2 3.2 68.4% 896.0 1970.0 2.0 FY 2002-03 31277.0 27.6% 46.4% -819.0 2.3 2.9 80.2% 350.0 2110.0 1.80

Source: Tariff Order issued by APERC for FY 2003-04

- = = = . -

-

!. )H( G ! = 4 = =

= =

TERI Report No. RP23

97

Analysis and compilation of tariff orders

H &J *4 CE ) $ = . )H I 3 < = = = ; *J 6 * ; % ) % 4 < 3 CE 6J .

- $ ) CE CE J ,4

!. )H(4 $ ) % J - I = I

0

=

Consumption and Access Sales/Demand estimation

= 3 3 3 !. )H(. 4 = 4 CE *J 64 $ ) 4 = 4 -J = 4 = = ) !. )H( H N = 4 $ ) J= CE !. )H( CE J J ) = I 3 -J C 4 4 !. )H( J 6J !. )H( -

4

% -

3 4 && & 9 (@4 CE J & !. )H(

CE -

&J *4 !. )H( 6 9T;, * (@< 4 - 0 2 = 4 4 =

2 = N =

) = 2 C CE *J 64 $ ) !. )H( = * (@

&&*6 6 (@ 3

% -

&* & (@ &* &6 (@

4

TERI Report No. RP23

98 Analysis and compilation of tariff orders (@< C = . / = CE = 0 *J 6 2 J 4 = 4 4 $ ) !. )H( = = = 4 = 4 !. )H( ;6 & 5

C CE 6J * , (@4 (@

4

!. )H( $ ) 4 !. )H( !

= %

-

&+** 5 5F

= 0 = CE

-

3 6 . 4 )H !. )H( *J 6 = 5 CE 6J 4 $ ) = = CE *J 6 = - 6 T - = CE *J 6 ) L CE *J 6 4= I !. )H( * CE &J

*

CE

6J

-

Table 2.4: Sales by DISCOMs: Projected and Approved (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT I: Ferro Alloys/Power Intensive HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction FY 2003-04 8205.8 1814.0 2240.6 32.8 10998.0 696.8 101.3 20.3 24109.5 5417.4 818.2 175.7 1155.4 Projected Sales FY 2004-05 7959.0 1871.0 2030.0 38.0 11800.0 941.0 110.0 6.0 24755.0 6523.0 737.0 187.0 1154.0 FY 2005-06 8597.4 1970.4 2290.4 46.0 14203.5 1304.7 112.6 8.5 28533.5 7119.0 1063.0 936.0 229.7 1205.5 FY 2003-04 8205.8 1814.0 2240.6 32.8 11350.0 696.8 101.3 20.3 24461.5 5531.4 818.1 175.7 1155.4 Approved Sales FY 2004-05 FY 2005-06 7887.0 8597.4 1795.0 1950.0 35.0 11450.0 1054.0 98.0 9 24278 6567 730 188 1152 1970.4 2290.4 46.0 12646.8 1304.7 112.6 8.5 26976.8 7119.0 1063.0 936.0 229.7 1205.5 CAGR 2.4% 4.2% 1.1% 18.4% 5.6% 36.8% 5.4% -35.3% 5.0% 14.3% 7.0% 13.4% 2.1%

TERI Report No. RP23

99

Consumer Category HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 182.4 1166.4 12.0 8927.5 33036.9

Analysis and compilation of tariff orders

Projected Sales FY 2004-05 199.0 1181.0 1.0 9982.0 34737.0 Approved Sales FY 2004-05 FY 2005-06 197 1121 1 9956 34234 244.3 666.1 1.8 11465.4 38442.2

FY 2005-06 244.3 684.8 1.8 11484.2 40017.7

FY 2003-04 182.4 1121.0 12.0 8996.0 33457.5

CAGR 15.7% -22.9% -61.3% 12.9% 7.2%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

- - = &&*6 6 (@ 5 ! S 5

- = &+** (@ 5 $ . A. H 4 . P % -

= ) D = - ) =

T . 5 &6 &T

) D % 0 J = = = = 4

. )H - ! . )H( !. ( ) 2 2 4 4 = 4 . )H = J 6 = 5F = 4 = = = CE 6J 2 -

J ! A

-

Table 2.5: All DISCOMs: Actual sales and trend of category-wise to total sales

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT I: Ferro Alloys/Power Intensive HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 7180.2 1658.9 1962.1 35.6 12411.0 1012.1 94.2 4.7 24358.8 5394.0 681.0 716.0 103.3 1128.9 196.5 1180.5 31.8 9431.9 33790.7 Actual Sales (MU) FY 2004-05 7791.5 1831.6 2122.8 40.7 13394.4 1143.9 104.1 8.3 26437.3 6647.1 823.0 889.9 212.8 1172.5 242.7 1184.1 4.0 11176.0 37613.3 FY 2005-06 8535.0 2070.0 2232.0 40.6 13284.0 1222.0 115.9 3.0 27502.5 8026.0 662.0 1074.0 249.6 1215.9 292.0 864.0 0.0 12383.5 39885.9 Proportion of total (%age) FY 2003-04 FY 2004-05 FY 2005-06 21.2% 20.7% 21.4% 4.9% 5.8% 0.1% 36.7% 3.0% 0.3% 0.0% 72.1% 16.0% 2.0% 2.1% 0.3% 3.3% 0.6% 3.5% 0.1% 27.9% 100.0% 4.9% 5.6% 0.1% 35.6% 3.0% 0.3% 0.0% 70.3% 17.7% 2.2% 2.4% 0.6% 3.1% 0.6% 3.1% 0.0% 29.7% 100.0% 5.2% 5.6% 0.1% 33.3% 3.1% 0.3% 0.0% 69.0% 20.1% 1.7% 2.7% 0.6% 3.0% 0.7% 2.2% 0.0% 31.0% 100.0%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

100 Analysis and compilation of tariff orders 5 4 2 = 4 2 ; < = - 0 = = 2 - = 4 A 5 = 4 -

DISCOM-wise Sales Forecast

0 " ( * % # ' 2 0 "* 3C CE 1" &J *4 $ ) = 96 * (@ % 6* * (@ - $ $ !)5 = % ) P 5 . )H 2 = 4 CE *J 64 ) = ,66 6 (@4 !. )H( % & (@ = 5 2 CE 6J 4 = 4 $ ) = = ) P 5 C 4 ) = = 6 6 + (@4 % 6+ (@ !. )H( % - $$ !)5 = - $ ) '1 '

Table 2.6: Sales by APNPDCL: Projected and Approved (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 1256.3 202.0 247.5 3.6 2734.0 136.4 12.0 0.3 4592.1 834.0 49.0 7.0 296.3 46.0 425.0 5.0 1662.3 6254.4 Projected Sales FY 2004-05 1182.3 195.7 224.0 4.3 2800.0 209.1 13.0 1.0 4629.3 807.8 48.5 15.7 304.9 47.4 420.0 0.0 1644.2 6273.6 FY 2005-06 1244.9 217.1 264.5 4.4 2982.7 236.6 13.9 1.1 4965.2 786.0 41.6 18.0 299.0 84.9 392.0 0.0 1621.6 6586.7 FY 2003-04 1256.3 202.0 247.5 3.6 2800.0 136.4 12.0 0.3 4658.1 834.0 49.0 7.0 296.3 46.0 400.0 5.0 1637.3 6295.4 Approved Sales FY 2004-05 FY 2005-06 1182.3 1244.9 195.7 224.0 4.3 2700.0 209.1 13.0 1.0 4529.3 807.8 48.5 15.7 304.9 47.4 402.0 0.0 1626.2 6155.5 217.1 264.5 4.4 2908.4 236.6 13.9 1.1 4890.9 786.0 41.6 18.0 299.0 84.9 385.3 0.0 1614.9 6505.8

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

101 -

Analysis and compilation of tariff orders

J $$ !)5

Table 2.7: APNPDCL: Actual sales and trend of category-wise to total sales (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General Ferro Alloys HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 1022.2 189.2 221.5 4.2 2783.5 219.7 11.9 0.3 4452.5 758.5 0.0 44.8 13.7 299.0 61.4 370.1 30.8 1578.3 6030.7 Actual Sales FY 2004-05 1091.4 207.8 236.4 4.2 2867.9 235.9 13.4 0.1 4657.0 779.5 0.0 46.0 10.2 295.7 89.3 357.3 0.0 1577.8 6234.8 FY 2005-06 1189.0 226.0 233.0 4.0 2941.0 244.0 15.0 0.0 4852.0 759.0 0.0 48.0 13.0 296.0 141.0 373.0 0.0 1630.0 6482.0 FY 2003-04 16.9% 3.1% 3.7% 0.1% 46.2% 3.6% 0.2% 0.0% 73.8% 12.6% 0.0% 0.7% 0.2% 5.0% 1.0% 6.1% 0.5% 26.2% 100.0% Proportion of total FY 2004-05 FY 2005-06 17.5% 18.3% 3.3% 3.8% 0.1% 46.0% 3.8% 0.2% 0.0% 74.7% 12.5% 0.0% 0.7% 0.2% 4.7% 1.4% 5.7% 0.0% 25.3% 100.0% 3.5% 3.6% 0.1% 45.4% 3.8% 0.2% 0.0% 74.9% 11.7% 0.0% 0.7% 0.2% 4.6% 2.2% 5.8% 0.0% 25.1% 100.0%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

= H

- = 4

$$ !)54 4 4 < 4

-

5

2 ; . )H ( * % # ' "* 3 CE 1" &J *4 5 . 4 )H ) = 66 & (@ P % 6&6 & (@ CE *J 64 $ ) = 6 6, & (@ 666* 9 (@ % !. )H( = 2 ) 7 2 = 4 CE 6J 4 5 4 ) = *9 , (@ 9 9 (@ !. )H( % - $$ !)5 = - $ ) + '1 " 2

TERI Report No. RP23

102 Analysis and compilation of tariff orders

Table 2.8: Sales by APEPDCL: Projected and approved (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT II: Ferro Alloys/Power Intensive HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 1646.8 331.0 369.9 1.6 1085.0 126.3 17.9 0.0 3578.4 1112.3 138.0 26.1 387.4 24.0 83.0 1.0 1771.9 5350.3 Projected Sales FY 2004-05 1636.7 308.9 280.0 1.2 1150.0 156.9 20.0 0.0 3553.6 1387.9 100.0 14.6 363.0 25.9 110.0 0.0 2001.3 5554.9 FY 2005-06 1809.1 343.2 378.5 1.6 1262.5 195.4 23.2 0.0 4013.4 1344.1 702.4 145.0 27.6 400.4 27.0 118.0 0.0 2764.5 6777.9 FY 2003-04 1646.8 331.0 369.9 1.6 1150.0 126.3 17.9 0.0 3643.4 1184.3 138.0 26.1 387.4 24.0 102.0 1.0 1862.8 5506.2 Actual Sales FY 2004-05 1636.7 308.9 280.0 1.2 1150.0 156.9 20.0 0.3 3553.9 1483.9 100.0 14.6 363.0 25.9 110.0 0.0 2097.3 5651.3 FY 2005-06 1809.1 343.2 378.5 1.6 1231.7 195.4 23.2 0.0 3982.6 1344.1 702.4 145.0 27.6 400.4 27.0 120.0 0.0 2766.5 6749.1

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

J = = 9

Table 2.9: APEPDCL: Actual sales and trend of category-wise to total sales

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General Ferro Alloys HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 1558.3 286.6 302.6 1.5 1175.4 145.1 19.2 0.2 3488.9 925.5 455.0 100.1 9.8 369.4 25.0 99.3 0.0 1984.1 5473.0 Actual Sales (MU) FY 2004-05 FY 2005-06 1708.0 1864.0 321.0 349.0 1.5 1309.0 152.0 21.0 0.4 3861.9 1147.0 544.0 149.0 15.0 388.0 28.0 117.0 0.0 2388.0 6249.9 358.0 382.0 1.6 1288.0 178.0 23.9 0.0 4095.5 1416.0 488.0 204.0 16.0 398.0 26.0 132.0 0.0 2680.0 6775.5 FY 2003-04 28.5% 5.2% 5.5% 0.0% 21.5% 2.7% 0.4% 0.0% 63.7% 16.9% 8.3% 1.8% 0.2% 6.7% 0.5% 1.8% 0.0% 36.3% 100.0% Proportion of total FY 2004-05 FY 2005-06 27.3% 27.5% 5.1% 5.6% 0.0% 20.9% 2.4% 0.3% 0.0% 61.8% 18.4% 8.7% 2.4% 0.2% 6.2% 0.4% 1.9% 0.0% 38.2% 100.0% 5.3% 5.6% 0.0% 19.0% 2.6% 0.4% 0.0% 60.4% 20.9% 7.2% 3.0% 0.2% 5.9% 0.4% 1.9% 0.0% 39.6% 100.0%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

103 A 5 4 5

Analysis and compilation of tariff orders

= = , 9T 4 CE &J *

4

A 9T CE

2 2 = 6J

-

* ) *+

'1

( * 2 * "* 3 1" = = ,&6 & (@4 -

"

CE

% # ' &J *4 ,& (@ = . )H C

(@ 5 J 2 J CE *J 64 $ ) = % ,*+, (@4 = 5 2 4 ) = % ;, , & (@< = 5 % = = ,

,*6*+ (@ . 4 CE 6J ;, && 6 (@< !. )H( ) = CE &J * CE 6J

Table 2.10: Sales by APCPDCL: Projected and Approved (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT II: Ferro Alloys/Power Intensive HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 3152.8 824.0 903.1 11.9 4605.0 269.1 41.5 19.0 9826.4 2673.1 479.1 126.6 82.7 52.4 278.4 5.0 3697.3 13523.6 Projected Sales FY 2004-05 2968.3 902.5 826.5 12.9 5249.2 370.6 36.6 3.9 10370.4 3421.3 433.1 149.8 74.4 65.9 295.5 0.0 4440.0 14810.4 FY 2005-06 3175.0 929.1 910.3 18.7 6392.7 576.7 43.6 3.4 12049.5 3839.0 360.6 611.4 152.3 90.3 68.5 1.8 5123.7 17173.2 FY 2003-04 3152.8 824.0 903.1 11.9 4800.0 269.1 41.5 19.0 10021.4 2715.1 479.1 126.6 82.7 52.4 278.4 5.0 3739.3 13760.6 Approved Sales FY 2004-05 FY 2005-06 2968.0 3175.0 850.7 826.5 12.9 5000.0 452.8 36.6 6.5 10153.9 3380.8 433.1 149.8 74.4 65.9 290.0 1.0 4395.0 14548.9 929.1 910.3 18.7 5453.1 576.7 43.6 3.4 11109.8 3839.0 360.6 611.4 152.3 90.3 68.5 1.8 5123.7 16233.5

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

6J

,,

J = CE &J * CE

TERI Report No. RP23

104 Analysis and compilation of tariff orders

Table 2.11: APCPDCL: Actual sales and trend of category-wise to total sales

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General Ferro Alloys HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 2660.0 777.0 828.0 13.0 5420.0 415.0 37.0 3.0 10153.0 2854.0 226.0 437.0 72.0 76.0 54.0 327.0 1.0 4047.0 14200.0 Actual Sales FY 2004-05 2854.0 856.0 887.0 16.0 5773.0 491.0 40.0 6.0 10923.0 3647.0 279.0 558.0 169.0 81.0 66.0 346.0 4.0 5150.0 16073.0 FY 2005-06 3174.0 986.0 940.0 13.0 5601.0 514.0 45.0 3.0 11276.0 4480.0 174.0 660.0 187.6 83.9 64.0 158.0 0.0 5807.5 17083.5

(MU)

Proportion of total FY 2003-04 FY 2004-05 FY 2005-06 18.7% 17.8% 18.6% 5.5% 5.8% 0.1% 38.2% 2.9% 0.3% 0.0% 71.5% 20.1% 1.6% 3.1% 0.5% 0.5% 0.4% 2.3% 0.0% 28.5% 100.0% 5.3% 5.5% 0.1% 35.9% 3.1% 0.2% 0.0% 68.0% 22.7% 1.7% 3.5% 1.1% 0.5% 0.4% 2.2% 0.0% 32.0% 100.0% 5.8% 5.5% 0.1% 32.8% 3.0% 0.3% 0.0% 66.0% 26.2% 1.0% 3.9% 1.1% 0.5% 0.4% 0.9% 0.0% 34.0% 100.0%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

C H

$ !)54 5 )$ , 6T CE &J * T CE 4 2 = + 6T CE &J * &*T CE 6J 4 2 ) D 6 &T ('

= 6J

=

" ( * % # ' '1 2 "* 3C CE 1" &J *4 $ ) = ++& (@ % = 9 + (@4 ; 6 , (@< = = 2 = 4 - I 4 = = = $$ . !)5 CE *J 64 ) = + 9 (@ % + 9+ (@ 5 2 C CE 6J 4 $ $ . !)5 9* 9 (@4 $ ) = +96& + (@ % = 5 , = % - $$ . !)5 = )

TERI Report No. RP23

105

Analysis and compilation of tariff orders

Table 2.12: Sales by APSPDCL: Projected and Approved (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 2150.0 457.0 720.0 15.6 2574.0 165.0 30.0 1.0 6112.6 798.0 152.0 16.0 389.0 60.0 380.0 1.0 1796.0 7908.6 Projected Sales FY 2004-05 2171.4 463.8 700.0 19.9 2600.0 205.0 40.5 1.4 6202.0 905.6 155.0 7.0 412.0 59.8 356.0 1.0 1896.4 8098.4 FY 2005-06 2368.4 481.1 737.2 21.4 3565.6 296.0 31.9 4.1 7505.5 1149.9 138.0 31.8 415.9 63.9 174.1 0.0 1973.6 9479.2 FY 2003-04 2150.0 457.0 720.0 15.6 2600.0 165.0 30.0 1.0 6138.6 798.0 152.0 16.0 389.0 60.0 329.0 1.0 1745.0 7883.6 Approved Sales FY 2004-05 FY 2005-06 2100.0 2368.4 440.0 620.0 17.0 2600.0 235.0 28.0 1.3 6041.3 895.0 148.0 8.0 410.0 58.0 319.0 0.0 1838.0 7879.3 481.1 737.2 21.4 3053.6 296.0 31.9 4.1 6993.5 1149.9 138.0 31.8 415.9 63.9 160.8 0.0 1960.3 8953.8

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

-

,&

J $$ . !)5

Table 2.13: APSPDCL: Actual sales and trend of category-wise to total sales (MU)

Consumer Category LT I: Domestic LT II: Non-Domestic and Commercial LT III: Industry LT IV: Cottage Industries and Dobighats LT V: Agriculture LT VI: Street Lighting and PWS Schemes LT VII: General Purpose LT VIII: Temporary Supply Sub-Total: Low Tension HT I: Industrial ­ General Ferro Alloys HT II: Industrial ­ Others HT IV: Agriculture and Irrigation HT V: Railway Traction HTVI: Townships and Residential Colonies RESCOS (Cat-VII) Temporary (Cat-VIII) Sub-Total: High Tension Total DISCOM Sales FY 2003-04 1939.7 406.2 609.9 16.9 3032.1 232.3 26.1 1.2 6264.4 856.0 0.0 134.1 7.8 384.5 56.1 384.1 0.0 1822.5 8086.9 Actual Sales FY 2004-05 2138.1 446.8 650.4 19.0 3444.5 265.1 29.7 1.8 6995.4 1073.7 0.0 137.0 18.6 407.8 59.4 363.8 0.0 2060.2 9055.6 FY 2005-06 2308.0 500.0 677.0 22.0 3454.0 286.0 32.0 0.0 7279.0 1371.0 0.0 162.0 33.0 438.0 61.0 201.0 0.0 2266.0 9545.0 FY 2003-04 24.0% 5.0% 7.5% 0.2% 37.5% 2.9% 0.3% 0.0% 77.5% 10.6% 0.0% 1.7% 0.1% 4.8% 0.7% 4.7% 0.0% 22.5% 100.0% Proportion of total FY 2004-05 FY 2005-06 23.6% 24.2% 4.9% 7.2% 0.2% 38.0% 2.9% 0.3% 0.0% 77.2% 11.9% 0.0% 1.5% 0.2% 4.5% 0.7% 4.0% 0.0% 22.8% 100.0% 5.2% 7.1% 0.2% 36.2% 3.0% 0.3% 0.0% 76.3% 14.4% 0.0% 1.7% 0.3% 4.6% 0.6% 2.1% 0.0% 23.7% 100.0%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

106 Analysis and compilation of tariff orders = ; $ !)5 )$ - = $$ !)5< 2 0 5 !. )H(

Estimation of Agricultural sales

$ CE &J *4 $ ) !. )H( = = ;! < / CE ) . = ( = ! 6 H ) ! ! 5 = ! ( / 0A ( ;2$ < ( ( = $ ) CE ) !. )H( = 4 = 4 ( 3 I 4 $ ) ( = = 6J N ) = - = 2$ 4 ( $ ) L CE *J 64 $ ) !. )H( CE !. )H( 4 J & .- I . I = 4 ) ) 4 5F 3 = 0 5 4 !. )H( ( = &J * 2 = 4 ; .< ! 4

!

TERI Report No. RP23

107

Analysis and compilation of tariff orders

H ) -

!. )H( 6 T *

3

$$ !)5 = 0 I = J 4

= & * T L -

) -

! *9 T CE =

! H J & =

= 4 &9 T = CE 6J CE &J * 0 CE I *J 6 4

Category wise sales

= = CE ,99 J9 CE 6J ) D ;) D < 9T ) D CE CE 6J T = ; (@ < C , J , =

45000 40000

Total Sales (In MUs)

38442.2 33457.5 27650 23944 25809 28418 25232 21033.4 31277 34234

35000 30000 25000 20000 15000 10000 5000 0

FY 1996-97 (Actual) FY 1997-98 (Actual) FY 1998-99 (Actual) FY 1999-00 (Actual) FY 2000-01 (Revised Estimate)

FY 2001-02 (Approved)

FY 2002-03 (Est. Actual Filing)

FY 2003-04 (Approved)

FY 2004-05 (Approved)

FY 2005-06 (Approved)

Financial Year

Figure 2.1: Movement of Sales (FY 1996-97 to 2005-06) S O U R C E : (1) Annual report (FY 2001-02) on the working of SEBs and Electricity Departments by Power and Energy Division- Planning Commission, GoI; (2) Tariff Orders issued by APERC (FY 2001-02 to FY 2005-06)

- = CE ,99 J9 CE ,999J B = CE J ,B = CE ,J B CE J & = CE &J * CE 6J -J = 5 2 " ! ". = N % &+ , (@ CE ,99 J9 +69 * (@ CE 6J 4 ) D 9 6T 2 = 4 ) D ;CE ,99 J9 CE ,999J < - I ;CE J ,

TERI Report No. RP23

-

108 Analysis and compilation of tariff orders CE A 6J ) D J! = ,9 0 * (@ - * &T N ) < ) J $ ) ,&T4 )

". 96 (@ CE ,99 J9 CE 6J ) D , T 4 ) D , 9T ,99 J + +T 75 J F "

J

H

CE

6J

4 -J

.

+&6

CE ,99 -

= N % CE ,99 J9 , * (@ CE 6J 4 ) D 6 6T ". % + 6 (@ CE ,99 J9 ,,*6* 6 (@ 6J 4 ) D T2 = 4 0J CE ,99 J9 CE 6J ) D ; 9<TCE J9 CE ,999J ,, T CE J , I $ ) (@ J J C J "

30.0 25.0 20.0

19.3 19.2 16.6 14.3 12.2 6.5 7.9 7.8 2.8 0.3 12.8 10.4 9.8 4.6 -0.1 1.0 14.5 11.7 11.3 13.9 11.4 8.2 0.9 -1.0 7.6 10.5 9.8 9.0 26.8 23.4 20.6

Y-o-y sales

15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0

FY 1997-98

FY 1998-99

-2.8

FY 1999-00

-7.3

FY 2000-01

FY 2001-02

-2.0

FY 2002-03

FY 2003-04

FY 2004-05

-3.9

FY 2005-06

-14.3

Financial Year

Domestic

Non-Domestic

Agriculture

Industry

S O U R C E : Tariff Orders issued by APERC (FY 1997-98 to FY 2005-06)

Figure 2.2: Year-on-year movement of sales (In %age)

% 6J

TERI Report No. RP23

2

4 && &T = 4

CE -

109

Analysis and compilation of tariff orders

6J 6

;2 4

5 < = &J * 9T

CE CE *J

& ,T4 6 +T CE

Number of consumers and connected Load

, ) D 5 *T J ,* CE * +T H &J * &T , - ,*T 4 2 $ CE 5 CE 6J = 6J

Table 2.14: Category-wise number of consumers and connected load

Category FY 2003-04 FY 2004-05 FY 2005-2006 Number of Connected Connected Number of Connected Connected Number of Connected Connected Load Consumers Load (MW) Load per Consumers Load (MW) Load per Consumers Load (MW) per Consumer Consumer Consumer

Low Tension LT I: Domestic 11956602 LT II: Non-Domestic and Commercial 1148702 LT III: Industry 162994 LT IV: Cottage Industries and Dobighats 17578 LT V: Agriculture 2309605 LT VI: Street Lighting and 97362 PWS Schemes LT VII: General Purpose 78525 LT VIII: Temporary Supply 757 Sub-Total: Low Tension 15772125 High Tension HT I: Industrial - General 3266 HT II: Industrial - Others 1492 HT IV: Agriculture and Irrigation 351 HT V: Railway Traction 38 HTVI: Townships and Residential Colonies 0 HT VII Others Sub-Total: High Tension Grand Total (LT+HT) 200 5347 15777472

7880.38 1409.66 2564.31 79.61 8208.82 541.44 95 0.24 20779 2873.77 295.94 141.49 410.35 0 273.54 3995 24775

0.7 1.2 15.7 4.5 3.6 5.6 1.2 0.3 1.3 879.9 198.4 403.1 10798.7

12586922 1209442 169363 18041 2374365 101194 82023 830 16542180 3552 1657 376 40 0

8293.69 1484.34 2660.91 71.44 7981.37 429.91 98.91 0.25 21021 3106.57 331.12 151.79 426.8 0 300 4316 25337

0.7 1.2 15.7 4.0 3.4 4.2 1.2 0.3 1.3 874.6 199.8 403.7 10670.0

13220362 1268594 175069 18649 2440823 105855 85232 949 17315533 -

8754 1787 2986 74 8205 450 124 0.28 22380 4701.9 27082

0.7 1.4 17.1 4.0 3.4 4.3 1.5 0.3 1.3 735.6 1.56

1367.7 747.1 1.57

217 5842 16548022

1382.5 738.8 1.53

6392 17321925

Source: Information provided by APERC

) D 4 & +T , 6& 0AN , 6 ?AN 4

TERI Report No. RP23

CE * T 2

6J CE

+ (A4 &J * ! + 6T CE - I = &J *

5 , 6 0AN CE *J 6 CE 6J

110 Analysis and compilation of tariff orders 4 6J A = 2 J &T &T C & = = !. )H( = 4 A 4 CE = % 6J 3 CE &J * CE

-

Agriculture 1.2%

Other Categories 11.7%

Domestic 23.0% Non-Domestic/ Commercial 12.7%

Industry 51.4%

Figure 2.3: Contribution of consumer categories to revenue S O U R C E : Tariff Orders issued by APERC (FY 1997-98 to FY 2005-06)

(

&,4 ;HG (< 0 =

4

!. )H( 4 J = / ,*, +9 &

*6 G 4 =

Status of Rural Electrification

) 4 4 , 4 D T22 4 ,+ 4 64,,*4*+6 J ( 0 %=D &,4 B +T 99 4 $ 4 *

2

= F 0 E % ; DF F E< , T = B T 9 4 ++ T 9* 9T D F DE + CE 6J 4 CE J CE D F DE 0 = 4 $ 4

J + ,

)

0

22 Status of rural electrification in Andhra Pradesh, Rural Electrification Corporation Limited, Government of India (March 2005)

TERI Report No. RP23

111

Analysis and compilation of tariff orders

Efficiency improvement Approach for fixing loss reduction targets

C 4 CE J= 4 $ 4 2 = &J *4 CE ,6

Table 2.15: Trend in Transmission Losses

Proposed 7.3% FY 2003-04 APERC 7.0% Actual 6.5% Proposed 6.3% FY 2004-05 APERC 6.0% Actual 5.5% FY 2005-06 Proposed APERC 5.0% 5.0%

= J &4 ) = . )H = +T = 4 2 CE *J 6 CE 6J J CE J & . 2F $ 4 . )H

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

= ) ;! H CE 0 L < &J *4 ) 5 < = -

! 4 -

4

!. )H( *J 64 = = 4 2 = 4!. )H( , =

;,, ?F S P )

= CE = 0

!. )H( = =

A

!. )H( CE 6J !. )H(

-

Table 2.16: Reduction trend of Distribution Losses

FY 2001-02 APERC Actual 26.0 25.4 FY 2002-03 APERC Actual 22.2 22.1 Proj. 19.0 FY 2003-04 APERC Actual 19.0 19.8 Proj. 19.2 FY 2004-05 APERC Actual 19.2 18.5 FY 2005-06 Proj. APERC 17.4 17.2

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

!. )H(J * CE 6J

4 = ,

CE &J

TERI Report No. RP23

112 Analysis and compilation of tariff orders

Table 2.17: Distribution and System Losses

(In %age) APEPDCL APCPDCL APNPDCL APSPDCL Distribution losses System losses FY 2003-04 (Actual) 16.0 21.0 20.6 19.4 19.8 25.1 FY 2004-05 (Actual) 15.5 19.2 19.5 18.5 18.5 23.6 FY 2005-06 (Proj.) 14.4 17.9 18.6 17.0 17.2 21.4

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

(E H ) 4-

!

-

/

. !. )H( 4 2 % ,9 T CE = I J CE -

4

,+ &T ; 2 = 4 = 2F 4 !. % )

!. )H( CE J <4 !. )H( =

3 =

6J 9T

=

= LCE !. )H(

+J 9 ,+

Table 2.18: Distribution loss trajectory for the control period

FY 2006-07 18.9% 18.9% 17.1% 17.1% 19.9% 19.9% 17.3% 17.3% FY 2007-08 17.1% 16.9% 16.3% 15.8% 18.8% 18.0% 16.5% 15.9% FY 2008-09 16.3% 15.9% 15.8% 15.1% 17.9% 17.1% 15.7% 14.9%

APCPDCL APERC APEPDCL APERC APNPDCL APERC APSPDCL APERC

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

Collection Efficiency

) P !. )H( - 4 ;(/)< = &J *4 6 T TERI Report No. RP23

= ( I A ; = 4/

) = -

9 T<4 C = 4

4

CE

D $ . = )

L

113 = = C

Analysis and compilation of tariff orders

L 4 $ )

-

0

4 ) 4 = 4 H I ) L = $ ) ) 6 4 4 = = - = . J ) I C J ,9

Table 2.19: Trend of collection efficiency (%age)

FY 2000-01 94.8% FY 2001-02 100.6% FY 2002-03 98.2% FY 2003-04 92.3% FY 2004-05 100.0%

34 0 ) !. )H( 4

CE

&J *4

4 I 4*J 6 4 J 4 4 CE !. )H( =

= 4

!. )H(

= 0 -

J C 4

= 0 !. )H( = = -

= N -J

4 2 J -

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

A = 4 $ + +T

=

4

)

Metering

-

4 ) 4 % =L J J H 5 J 4 &J *

CE

TERI Report No. RP23

114 Analysis and compilation of tariff orders

& 3 I !. )H( = = 2 = 4 = ) C

= 4

3 ) -

) !. )H(

4

= ) !. )H( 4 . J&T !. )H(. = 2 = 4 !. )H( = = = = = 4 ) ) J J 4 = 0

4

)

Table 2.20: Current status of metering

Particulars No. of new meters installed No. of Defective meters replaced Metered Sales Agricultural Sales Percentage of Metered Sales (%age) Percentage of Agricultural Sales (%age) FY 1999-00 (Audited) 15581 10222 36.9 24.2 FY 2000-01 (Audited) 1784508 2218630 16037 10692 38.4 25.6 FY 2001-02 (Audited) 506612 511846 17247 12155 40.9 28.8 FY 2002-03 (Audited) 610207 719713 19137 12468 42.5 27.7 FY 2003-04 (Est.) 609952 519483 21409 11703 46.7 25.6 FY 2004-05 (Proj.) 22785 11450 50.9 25.6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

A =

J $ ) 4

Aggregate Revenue Requirement (ARR) and its components

C CE &J *4 ) = 9 + + 9 &6 !. )H( C CE *J 64 !. )H( I , +9 , = = 4 ) = 9 6* * 4 , &T = = = C CE 6J 4 )

TERI Report No. RP23

=

=

115 , 9

Analysis and compilation of tariff orders

= 4 ) !. )H( = =

I ,,* 3 4 3 !. )H(J & C

= - I

Purchase of Energy

) = +, ,T 3 4 $ . )H4 !. )H( ) . ;/. <4 /. P / 0. J 4 !. )H( C !. )H( > 6 ;/. < !. )H( 4 4 / 0 4 A

. 5!) !. )H(4 ) 3 4 0

CE $ )H 4 J /. &4 D $ = !. )H( CE J /. 4 . 6J 4 $ J= J C

&J *4 /. 4 4 CE )

) !. )H( *J 64 $ .- I $ . )H 4 )

. )H

$

;$ < $

$ 3 0

!. )H( 4 . A )H -

)

= 0 (E H -

(

J!. )H(

! )

(

.

/

!. )H( ,

CE

= &J *

CE 6J L

TERI Report No. RP23

116 Analysis and compilation of tariff orders

Table 2.21: Purchase of Energy

Unit (MUs) APEPDCL APCPDCL APNPDCL APSPDCL All DISCOMs FY 2003-04 Projected Approved 6370.0 16375.0 7851.0 9816.0 40412.0 Proposed 1328.8 3490.9 1637.7 2047.6 8505.0 2.09 2.13 2.09 2.09 2.10 6555.1 17042.7 7902.9 9784.8 41285.5 FY 2004-05 Projected Approved 5554.4 14811.2 6272.1 8098.4 34736.1 6687.9 18006.0 7646.6 9667.8 42008.3 FY 2005-06 Projected Approved 7921.5 20919.9 8088.3 11423.5 48353.2 Proposed 1766.5 4368.1 1321.6 2178.5 9634.7 2.23 2.09 1.63 1.91 1.99 7888.2 19775.3 7988.4 10790.4 46442.2 Approved 1558.2 3906.3 1578.0 2131.5 9174.0

APEPDCL APCPDCL APNPDCL APSPDCL All DISCOMs APEPDCL APCPDCL APNPDCL APSPDCL All DISCOMs

Cost of Power Purchase (In Rs. Crores) Approved Proposed Approved 1356.4 1568.2 1328.3 3526.5 4055.6 3576.3 1635.2 1243.5 1518.8 2024.7 1959.5 1920.2 8542.7 8826.8 8343.6 Average power purchase per unit of cost (Rs. per unit) 2.82 2.74 2.07 1.99 1.98 2.42 2.54

1.98

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

-

CE

= 6J $

- =

-

= CE

* *T . )H

&J * = = -

, 9+

!. )H(

Table 2.22: Sources of Power Purchase

FY 2003-04 Source(s) of Power APGENCO Thermal & Hydel Central Generating Stations (CGS) - Southern Regional Pool CGS: NTPC Simhadri CGS: NTPC (Eastern Region) CGS: Talcher II Other SEBs IPPs like GVK, Spectrum, Kondapalli and BSES Andhra APGPCL Non Conventional Sources Others Total Approved (MU) 23583.0 5921.0 5662.0 1133.0 628.0 7148.0 405.0 1326.0 45806.0 Proportion of total (%) 51.5% 12.9% 12.4% 2.5% 1.4% 15.6% 0.9% 2.9% FY 2004-05 Approved (MU) 23250.7 6670.0 6046.0 332.0 1900.1 5677.3 157.7 1850.0 113.1 45996.7 Proportion of total (%) 50.5% 14.5% 13.1% 0.7% 4.1% 12.3% 0.3% 4.0% 0.2%

FY 2005-06 Approved (MU) 23919.4 10070.4 7446.0 4758.9 424.3 2180.5 87.0 48886.5 Proportion of total (%) 48.9% 20.6% 15.2% 9.7% 0.9% 4.5%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

117 $ D 2 4 $ 4

Analysis and compilation of tariff orders

)H

=

- = -

= 4 *+ 9T $ ; ) . $ 4 $

CE )D . < . 9 ,T 6J H . $ . &6 +T C -

Employee cost

CE &J *4 ) 3 S 4 S 2 = 4 % CE &J *4 0 % -3 !. )H( 2 = 4 ) H= 4 CE &J *4 ) = 4 4 = 4 . A = P % = $ ) ; 4 C 4 $ ) P !. )H( = JOJ= L L < -

!. )H( ;

,9 T = 3 &

Table 2.23: Employee Costs for FY 2003-04

Particulars Wages, Salaries and Allowances Contribution to Employee Funds Gross Employee Costs Less: Capitalization Net Employee Costs APEPDCL Proposed Approved 118.2 12.4 130.6 26.7 103.9 118.2 12.4 130.6 8.0 122.5

, < 4 $$ !)54 $ $ . !)5 $$ !)5 = 4 $ !)5 )$ 3 = J % = I CE &J *

(Rs. Crores)

APCPDCL Proposed Approved 210.7 17.9 228.6 41.0 187.6 Proposed 696.2 210.7 21.8 232.4 10.5 221.9

APNPDCL Proposed Approved 126.8 13.1 140.0 19.2 120.7 126.8 13.1 140.0 8.6 131.4 Actual 641.6

APSPDCL Proposed Approved 178.1 19.0 197.1 11.9 185.2 178.1 19.0 197.1 4.1 193.0

All DISCOMs (FY 2003-04) Gross Employee Cost (Rs. Crore)

Approved 700.1

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

118 Analysis and compilation of tariff orders CE = !. )H( ) *J 64 ) % = S L . 4 = P *J 64 96 $$ . !)54 3 5 = ; 5< = J 96 CE

Table 2.24: Employee Costs for FY 2004-05

Particulars Wages, Salaries and Allowances Contribution to Employee Funds Gross Employee Costs Less: Capitalization Net Employee Costs APEPDCL Proposed Approved 130.4 13.4 143.8 12.8 131.0 130.4 13.4 143.8 12.8 131.1 APCPDCL Proposed Approved 238.0 29.0 267.0 34.4 232.6 Proposed 785.7 228.9 29.0 257.9 34.4 218.1 APNPDCL Proposed Approved 141.8 14.7 156.5 18.0 138.5 Approved 769.5 136.9 14.7 151.6 18.0 133.6 Actual 814.2

-

= $$ !)54 P P P = 4 4

A 2 S

C

CE

) !. )H(

= 4 3 !. )H( = JOJ= = 5 4 L 4

+6

= $ !)5 )$ *"

(Rs. Crores)

APSPDCL Proposed Approved 196.0 22.4 218.4 15.6 202.8 193.8 22.4 216.1 15.6 199.0

*J 6

All DISCOMs (FY 2004-05) Gross Employee Cost (Rs. Crore)

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

CE 6J 4 $$ !)54 T $$ . !)5 4 = !. )H(

= 9 ,T $ !)54 J 9T )$ $$ !)5 6 *T = CE *J 6 $ !)5 )$ $$ !)5 CE 6J L 6"

TERI Report No. RP23

119

Table 2.25: Employee Costs for FY 2005-06

Particulars Wages, Salaries and Allowances Contribution to Employee Funds Gross Employee Costs Less: Capitalization Net Employee Costs

Analysis and compilation of tariff orders (Rs. Crores)

APCPDCL Proposed Approved 233.8 233.8 25.6 24.6 259.4 258.4 33.7 22.6 225.7 235.8 APNPDCL Proposed Approved 135.9 135.9 27.0 14.3 162.8 150.2 33.6 13.1 129.2 137.1 APSPDCL Proposed Approved 206.4 206.4 23.2 21.4 229.7 227.9 32.3 18.0 197.4 209.9

APEPDCL Proposed Approved 142.6 142.6 14.2 14.3 156.8 157.0 20.0 10.7 136.9 146.2

All DISCOMs (FY 2005-06) Gross Employee Cost (Rs. Crore)

Proposed 808.72

Approved 793.43

Actual 735.03

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

!. )H(J CE " &J * CE

4 6J

=

Table2.26: Gross Employee Cost - Proposed, Approved and Actual (Rs. Crore)

Proposed 130.6 228.6 140.0 197.1 FY 2003-04 Approved 130.6 232.4 140.0 197.1 Actual 102.2 238.6 130.9 169.9 Proposed 143.8 267.0 156.5 218.4 FY 2004-05 Approved 143.8 257.9 151.6 216.1 Actual 160.5 309.9 174.9 169.0 Proposed 156.8 259.4 162.8 229.7 FY 2005-06 Approved 157.0 258.4 150.2 227.9 Estimate 131.4 258.6 154.2 190.8

APEPDCL APCPDCL APNPDCL APSPDCL

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

Employee Productivity

= T = CE !. )H( 6J - I 4 C = * CE *J 6 L

10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% FY 2003-04

8.0% 7.9% 7.0%

8.8% 8.7%

8.5% 8.2%

7.9% 5.9%

7.6% 5.5%

5.6%

FY 2004-05 Financial Year

FY 2005-06

APEPDCL

APCPDCL

APNPDCL

APSPDCL

Figure 2.4! Employee Cost as %age of Gross ARR (Approved) S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 200506) TERI Report No. RP23

120 Analysis and compilation of tariff orders

= C = 6 3 = +

Table 2.27: Employee Costs ­ Approved and Actual (Rs. Crores)

Approved Actual FY 2003-04 700.06 641.58 FY 2004-05 769.47 814.23 FY 2005-06 793.43 735.03

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) Table 2.28: Employee Cost per unit of Sales ­ Approved and Actual (In Rs. Crores)

Approved Actual FY 2003-04 0.21 0.19 FY 2004-05 0.22 0.24 FY 2005-06 0.21 0.19

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

9.0%

7.8%

8.0% 7.0% 6.0%

6.2% 6.8% 7.4% 7.0% 6.5%

5.0% 4.0% 3.0% 2.0% 1 .0% 0.0% FY 2003-04 FY 2004-05 FY 2005-06

A ppro ved A ctual

Figure 2.5: Actual and approved Employee Cost as %age of Gross ARR S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 200506)

C ;

!. )H( 4 = - = = < CE

$ ) 3 4 *J 6 = CE CE *J 6 = = 6J

Repair and Maintenance Expenses (R&M Expenses)

C CE 6J 4 $ ) = G 3 ( = LCE &J *4 CE G 3 ( I = !. )H(J = *J 6

9

C

TERI Report No. RP23

121

Analysis and compilation of tariff orders

Table 2.29: Repair and Maintenance Expenses

APEPDCL Proposed Approved 13.4 13.4 14.8 14.8 16.2 16.2 APCPDCL Proposed Approved 79.2 79.2 92.9 92.9 72.7 72.7 APNPDCL Proposed Approved 38.0 38.0 41.6 41.6 39.5 39.5

(Rs. Crores)

APSPDCL Proposed Approved 48.8 48.8 39.6 39.6 31.7 31.7

FY 2003-04 FY 2004-05 FY 2005-06

ALL DISCOMS (IN RS. CRORES)

FY 2003-04 FY 2004-05 FY 2005-06

Proposed 179.4 188.8 160.1

Approved 179.4 188.8 160.1

Actual 128.2 125.1 144.7

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

2.5% 2.0% 1 .5% 1 .0% 0.5% 0.0% FY 2003-04 0.8% 1 .9% 1.9% 2.0%

2.2% 2.1 % 1 .6% 2.0% 1.7% 1 .3% 1.0% 0.9%

FY 2004-05

FY 2005-06

APEPDCL

APCPDCL

APNPDCL

APSPDCL

( T D ( $-4 G 3 ! Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

=

- =

G 3 ( !. )H(

$ !)5 )$ CE &J *

CE &

*J 6 G 3 ( =

3

;

=

<

Table 2.30: Repair & maintenance expenses as a percentage of Gross Fixed Assets (%)

Financial Year FY 2003-04 FY 2004-05 FY 2005-06 APEPDCL 1.64% 1.45% 1.19% APCPDCL 3.83% 3.72% 3.50% APNPDCL 3.79% 3.47% 2.93% APSPDCL 3.71% 2.64% 1.69%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

122 Analysis and compilation of tariff orders

C CE

- = 4 &J * L4 G 3 ( CE

-

- = D C 6J &, CE

G 3 ( !. )H(

-

&J *

CE

= 6J

Table 2.31: Approved and actual R&M expenses (Rs. Crores)

R&M Expenses Approved Actual FY 2003-04 179.4 128.2 FY 2004-05 188.8 125.1 FY 2005-06 160.1 144.7

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

- = !. )H( C G (

- = D C

G 3 ( = & = !. )H(

=

2.0% 1 .8% 1 .6% 1 .4% 1 .2% 1 .0% 0.8% 0.6% 0.4% 0.2% 0.0% FY 2003-04 FY 2004-05 FY 2005-06

1 .2% 1 .2% 1 .4% 1 .3% 1 .7% 1 .8%

A ppro ved A ctual

Figure 2.6: Actual and approved R&M expense as %age of Gross ARR

S O U R C E : Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

Table 2.32: R&M as %age of Gross Fixed Assets (%age)

R&M Expenses Approved Actual FY 2003-04 3.4% 2.5% FY 2004-05 3.0% 2.0% FY 2005-06 2.4% 2.2%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06

Administration and General (A&G) Expenses

A 4 ) J !. )H( 4

TERI Report No. RP23

4 $ ) 3 3

= L L

G D -

3 G 3 D

4

123

Analysis and compilation of tariff orders

4 G

3 45

G 3 D 4 = -CE &J *4 $ ) = G D 3 % !. )H( 2 = 4 G 3 D ,& 9T = % = $$ !)5 $ !)5 )$ !. )H(J = L &&

Table 2.33: Administrative and General Expenses for FY 2003-04

Particulars Gross A&G Rent, Rate and Taxes Legal Charges Audit & Other fees Sub-Total: A&G Expenses Capitalization Net A&G Expenses APEPDCL Proposed Approved 15.0 15.0 0.6 0.6 5.0 5.0 0.0 20.6 3.1 17.6 0.0 20.6 3.1 17.6 APCPDCL Proposed Approved 39.8 39.8 1.2 1.2 8.5 8.5 0.0 49.4 7.0 42.4 0.0 49.4 7.0 42.4 Proposed 126.1 APNPDCL Proposed Approved 21.2 21.2 1.4 1.4 0.1 0.1 0.0 22.7 2.9 19.8 Approved 126.1 0.0 22.7 2.9 19.8 Actual 143.6

(Rs. Crores)

APSPDCL Proposed Approved 25.5 25.5 1.6 1.6 6.3 6.3 0.0 33.4 1.5 31.8 0.0 33.4 1.5 31.8

All DISCOMs (FY 2003-04) Gross A&G Expenses (Rs. Crores)

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

*J 64 ) G 3 D $$ . !)54 = $ !)5 )$ & 4 ) = 4 !. )H( ,* 4 T G 3 D &*

Table 2.34: Administrative and General Expenses for FY 2004-05

Particulars Gross A&G Rent, Rate and Taxes Legal Charges Audit & Other fees Sub-Total: A&G Expenses Capitalization Net A&G Expenses APEPDCL Proposed Approved 24.9 24.9 7.4 7.4 0.1 0.0 32.4 2.2 30.2 0.1 0.0 32.4 2.2 30.2 APCPDCL Proposed Approved 43.2 40.9 5.0 5.0 13.6 0.1 61.8 5.6 56.2 13.6 0.1 59.5 5.6 54.0 Proposed 160.9

CE

3 =

= $$ !)54 $ $ !)5

= G 3 D = !. )H(

-

(Rs. Crores)

APNPDCL Proposed Approved 16.4 16.4 2.9 2.9 8.3 0.1 27.7 1.9 25.8 8.3 0.1 27.7 1.9 25.8 Approved 158.6 APSPDCL Proposed Approved 26.4 26.4 4.0 4.0 8.5 0.2 39.0 1.9 37.1 Actual 147.6 8.5 0.2 39.0 1.9 37.1

All DISCOMs (FY 2004-05) Gross A&G Expenses (Rs. Crore)

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

124 Analysis and compilation of tariff orders

C

CE

6J

4 4 !

) 4 T 3 = $$ !)54 CE &J * CE

=

G 3 D

= = G 3 D 6J

, ,T !. )H( &6

Table 2.35: Administrative and General Expenses for FY 2005-06

Particulars Rent, Rate and Taxes Legal Charges Audit & Other fees A&G Expenses APEPDCL Proposed Approved 7.6 0.1 0.0 33.1 7.6 0.1 0.0 29.5 APCPDCL Proposed Approved 8.5 12.4 0.1 67.1 8.5 12.4 0.1 63.6 APNPDCL Proposed Approved 1.8 11.0 0.0 25.3 Approved 151.5 1.8 11.0 0.0 23.2 Actual 161.6

(Rs. Crores)

APSPDCL Proposed Approved 1.1 10.0 0.3 36.8 1.1 10.0 0.3 35.3

All DISCOMs (FY 2005-06) Gross A&G Expenses (Rs. Crores)

Proposed 162.3

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

!. )H(J D G D &

4 CE &J * CE 6J

=

Table2.36: A&G Expenses (Net of capitalization) - Proposed, Approved and Actual (Rs. Crore)

Proposed 17.6 42.4 19.8 31.8 FY 2003-04 Approved 17.6 42.4 19.8 31.8 Actual 24.4 62.1 22.6 34.6 Proposed 30.2 56.2 25.8 37.1 FY 2004-05 Approved 30.2 54.0 25.8 39.0 Actual 27.1 61.1 24.1 35.4 Proposed 33.1 67.1 25.3 36.8 FY 2005-06 Approved 29.5 63.6 23.2 35.3 Estimate 34.3 63.6 25.3 38.4

APEPDCL APCPDCL APNPDCL APSPDCL

C 4 = JOJ=

C

+ =

G 3 D = -

!. )H( =

CE

6J

TERI Report No. RP23

125

Analysis and compilation of tariff orders

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1 .0% 0.0% FY 2003-04 FY 2004-05 FY 2005-06 4.2% 3.7% 3.6% 3.6% 4.9% 4.5% 5.7% 4.4% 3.9% 3.9% 3.6% 4.1 %

APEPDCL

APCPDCL

APNPDCL

APSPDCL

Figure 2.7: A&G Expenses as %age of Sales (Approved) S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

2.50% 2.00% 1.50% 1.00% 0.50% 0.00% APEPDCL APCPDCL

FY 2003-04 FY 2004-05

2.0% 1.5% 1.3% 1.4% 1.2% 1.4% 1.1% 1.4% 1.2% 1.6% 1.3% 1.3%

APNPDCL

FY 2005-06

APSPDCL

Figure 2.8: A&G as %age of Gross ARR S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 200506)

= !. )H( L

G 3 D -

&

-

= &+

Table 2.37: Approved and Actual A&G Expenses

Approved Actual FY 2003-04 126.1 143.6 FY 2004-05 158.6 147.6

(Rs. Crores)

FY 2005-06 151.5 161.6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

126 Analysis and compilation of tariff orders

Table 2.38: A&G Productivity - Approved and Actual

A&G Expenses as %age of Gross ARR ( %age) Approved Actual A&G/Sales (In Rs./kWh) Approved Actual FY 2003-04 1.23% 1.40% 0.038 0.043 FY 2004-05 1.53% 1.42% 0.046 0.043 FY 2005-06 1.34% 1.43% 0.039 0.042

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

C

- = 4 G 3 D = =

= 2

3 !. )H( = 4

CE = 4

*J 64 G D

3

Total Operating Expenses (Employee Costs, A&G and R&M Expenses)

HG ( 4 G ( HG 3 ( =L G 3 D CE &J * &9 CE = 6J

Table 2.39: Trend of O&M Expenses

Proposed Approved Rs. Crore 1005.5 1116.9 1105.0 Actual Per unit of sale Rs/kWh 30.1 32.6 28.7 %age of Gross ARR

%

9.8 10.8 9.8

FY 2003-04 FY 2004-05 FY 2005-06

1001.7 1135.3 1131.1

913.4 1086.9 1041.4

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

= HG 3 (

- =

HG 3 ( = 6J 4 CE J !. )H( HG 3 ( J

= C 4

CE C ) I -

CE -

CE *J 6 +J 94

N

Depreciation

= ( H $ 4 $ ) H 3 ;( $ < ; < S *< ;CH <

TERI Report No. RP23

4

) = ( $ = (E = ) P ;( C H )

) J $ -

127

Analysis and compilation of tariff orders

4 L ! = ) CE 6J H)C = = 3 CE 6J = -

) 4 4 4 CE = )

J

0 J

0 . H-

&J *4 CE

*J 6 0

!. )H( L * CE &J *

Table 2.40: Proposed, Approved and Actual Depreciation Expenses

APEPDCL Proposed Approved 60.9 57.3 78.6 70.6 95.3 90.2 Depreciation Expenses APCPDCL APNPDCL Proposed Approved Proposed Approved 155.4 137.3 74.0 71.6 149.2 143.9 74.1 69.6 184.9 APEPDCL 51.9 93.9 125.9 178.8 90.8 86.4 APNPDCL 63.2 76.1 85.3

(Rs. Crores)

APSPDCL Proposed Approved 102.8 90.5 118.9 110.3 141.6 APSPDCL 99.2 116.1 146.8 136.5

FY 2003-04 FY 2004-05 FY 2005-06

FY 2003-04 FY 2004-05 FY 2005-06

APCPDCL 129.3 158.8 165.7

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

Sources of Funds

Accelerated Power Development & Reforms Program (APDRP)

, , % $ $ ! 3 - $$ . !)5 ; &<4 $ $ !)5 ; ,< !. )H(J $ $ ! *,

Table 2.41: Progress of APDRP Projects

DISCOM APEPDCL APCPDCL APNPDCL APSPDCL Project Cost (In Rs. Crores) 357.0 518.4 174.6 373.5 % age of work completed 63.0% 53.0% 83.0% 84.0% Utilization upto March 2005 Utilization during FY 2005(Rs. Crores) 06 (Rs. Crores) 167.0 248.0 112.2 310.6 56.0 26.3 33.3 1.4 Total Utilization upto March 2006 (Rs. Crores) 226.0 274.3 145.6 312.1

= $ !)5 )$ % ;&6< $$ !)5 ;,9< % = -

,*6+ 6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

= $$ . !)5

- = -

0 -

$$ !)5 ; - = + T<4

TERI Report No. RP23

128 Analysis and compilation of tariff orders 0 - = 4 6, D &J * $$ !)5 = !. )H( = !. )H( $ !)5 )$ $ $ ! = 6& D $ H

CE

High Voltage Distribution System (HVDS) Scheme

CE % 0 6J = 2 4 ! &J6 4D $ 66 J ! = = -% = 4 L! = 5 4 4 ) 2F !. !. )H( = L

Status of PFC lending23

$ C) =

Table 2.42: Status of PFC lending

APERC Power Generation Corporation of Andhra Pradesh APEPDCL APCPDCL APNPDCL APSPDCL APTRANSCO B. Seenaiah and Company (Projects) Clarion Power Corporation Gautami Power IMP Power Indur Green Power Konanseema Gas Power Lanco Kondapalli Power Om Shakti Renergies Perpetual Energy Systems Total ­ Andhra Pradesh Total PFC Funding to all States %age of total PFC funding Utility Total Sanction 0.07 5617.0 253.7 409.1 34.5 80.3 2733.6 7.0 23.5 290.0 5.9 9.8 275.0 223.6 10.0 9.9 9983.0 112640.8 8.9%

$ *

H

-

64

(Rs. Crores)

Total disbursement 0.07 4243.4 78.7 77.0 1561.5 7.0 23.5 260.3 6.8 9.8 243.1 223.6 10.0 9.9 6754.6 67652.4 10.0%

Source: PowerLine Volume 11, No. 2, October 2006

- = 4 N ! = C ;!C !<4 A ;H )C< ! / 0 =

4 H=

= ) J

J

23

Power Line, Volume 11, No. 2, October 2006

TERI Report No. RP23

129

Analysis and compilation of tariff orders

Interest and Finance Charges

S 0 5 = C = = 3

(Rs. Crores)

APNPDCL Proposed Approved 86.4 78.3 90.0 81.0 119.2 98.5 APSPDCL Proposed Approved 89.2 82.0 103.2 100.6 124.4 102.2

P 0 N

!. )H(

4

) = *&

= -

0

0

Table 2.43 Interest on Approved Loan and Security Deposits

APEPDCL Proposed Approved 51.8 51.4 66.2 68.3 86.3 68.5 APCPDCL Proposed Approved 181.8 130.2 199.0 181.7 295.1 236.7

FY 2003-04 FY 2004-05 FY 2005-06

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

H

= &*, 9

4 CE ) D =

3 &J * , T

3 &* +T

!. )H( 6 6 CE !. )H( 4 $ !)5 )$ ) D

6J

4

Provision for Bad Debt

+ 9 ;. ) !. )H( .- I H < CE *J 64 !. )H( 4 I = ,T = ) 4 ,9+64 = 3 = C = % = = ; L < 4 CE 6J 4 =

4 L -

-

Rate of Return

4 H CE &J *4 CE !. )H( = % 2 = 4 ) = ;. < ,9*+ J *J 6 CE 4 .3 . 4 . 6J

)

TERI Report No. RP23

130 Analysis and compilation of tariff orders ) ) /

, T = 0

6 T

Other Expenses and Special Appropriations

A 3 S H % S . S 6T H I ,++ H 2 = 4 *J 6 3 CE 3 !. )H( J P 4 = ) P C3 = 3 CE &J *4 - $ 3 . )H C 3 = P ;H)C < J

) -

!. )H( CE

6J CE % &J *4 = CE J & . 3 = CE = J ,4 CE I &J * = 3 ,J CE CE 4 6J ) 4 4

% H % J & 4 $ ) CE CE 4 *J 64 )

**

Table 2.44: Other expenses and Special appropriations

APEPDCL Proposed Approved FY 2003-04 Other Expenses Special Appropriations Sub-Total FY 2004-05 Other Expenses Special Appropriations Sub-Total FY 2005-06 Other Expenses Special Appropriations Sub-Total 5.9 2.6 8.5 3.0 3.0 3.5 3.5 6.5 -8.1 -1.6 -0.8 -0.8 4.9 4.9 APCPDCL Proposed Approved 14.9 6.4 21.2 7.2 7.2 8.6 8.6 11.8 -9.4 2.5 57.0 57.0 13.2 13.2 APNPDCL Proposed Approved 8.7 2.8 11.5 21.7 21.7 5.0 5.0 6.5 14.7 21.2 23.3 23.3 -2.7 -2.7

(Rs. Crores)

APSPDCL Proposed Approved 10.1 3.8 13.9 -0.3 4.2 3.9 6.3 5.2 11.4 7.8 5.6 13.3 19.1 19.1 17.5 17.5

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06) TERI Report No. RP23

131

Analysis and compilation of tariff orders

Total ARR of the DISCOMs

*6 =

Table 2.45: Aggregate Revenue Requirement ­ APEPDCL

FY 2003-04 Proposed Approved 1328.8 1356.4 130.6 130.6 FY 2004-05 Proposed Approved 1568.2 1328.3 143.8 143.8

!. )H(J ; CE

= = &J * < CE 6J

(Rs. Crores)

FY 2005-06 Proposed Approved 1766.5 1558.2 156.8 157.0

Purchase of Energy Employee Cost (Wages & Salaries and Contribution to Employee Funds) A&G Expenses (Including rent, rates and taxes; legal changes; audit and other fees) R&M Expenses Interest on approved loan and Security Deposits Depreciation Other Expenses and Special Appropriations Provision for Doubtful Debts Gross ARR Less: capitalization Less: Non-Tariff Income Add: Reasonable Return Total Net ARR Less: Efficiency Gains Less: Revenue from Tariffs Net Revenue Gap

20.6 13.4 51.8 60.9 8.5 1614.5 29.7 77.7 1507.0 1501.8 5.3

20.6 13.4 51.4 57.3 -1.6 1628.1 11.1 80.9 1.9 1538.0 20.0 1513.9 4.1

32.4 14.8 66.2 78.6 3.0 15.4 1922.3 15.0 67.9 1839.4 1537.2 302.2

32.4 14.8 68.3 70.6 -0.8 1657.4 15.0 67.9 3.3 1577.8 8.0 1536.6 33.2

33.1 16.2 86.3 95.3 3.5 2157.8 20.0 79.1 2058.7 1821.5 237.2

29.5 16.2 68.5 90.2 4.9 1924.5 10.7 79.1 1.6 1836.2 6.0 1862.4 -32.2

Total Net ARR Net Revenue Gap

FY 2003-04 Proposed Approved 1507.0 5.2 1538.0 4.1

Net ARR and Revenue Gap - APEPDCL FY 2004-05 FY 2005-06 Proposed Approved Actual Proposed 1839.4 302.2 1577.8 33.2 1976.1 179.0 2058.7 237.2

Approved 1836.2 -32.2

Actual 2111.9 93.4

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

= -

= .

$ !)5 )$ CE 4 = =

6 T *J 6 = -

,6 T CE 6J

TERI Report No. RP23

132 Analysis and compilation of tariff orders

Table 2.46: Aggregate Revenue Requirement ­ APCPDCL

FY 2003-04 Proposed Purchase of Energy Employee Cost (Wages & Salaries and Contribution to Employee Funds) A&G Expenses (Including rent, rates and taxes; legal changes; audit and other fees) R&M Expenses Interest on approved loan and Security Deposits Depreciation Other Expenses and Special Appropriations Provision for Doubtful Debts Gross ARR Less: Capitalization Less: Non-Tariff Income Add: Reasonable Return Total Net ARR Less: Efficiency Gains Less: Revenue from Tariffs Net Revenue Gap 3490.9 228.6 Approved 3526.5 232.4 Proposed 4055.6 267.0

(Rs. Crores)

FY 2004-05 Approved 3576.3 257.9 Proposed 4368.1 259.4 FY 2005-06 Approved 3906.3 258.4

49.4 79.2 181.8 155.4 21.2 4206.6 48.0 200.4 3958.1 3529.0 429.1

49.4 79.2 130.2 137.3 2.5 4157.5 17.5 193.2 11.4 3958.2 139.0 3486.9 332.2

61.8 92.9 199.0 149.2 7.2 37.1 4869.8 40.0 259.3 4570.5 3705.7 864.8

59.5 92.9 181.7 143.9 57.0 4369.2 45.3 300.1 11.7 4035.5 157.0 3596.6 281.8

67.1 72.7 295.1 184.9 8.6 5255.9 33.7 307.6 4914.6 3981.2 933.5

63.6 72.7 236.7 178.8 13.2 4729.8 22.6 306.6 6.1 4406.6 60.0 4042.0 304.7

Total Net ARR Net Revenue Gap

FY 2003-04 Proposed Approved 3958.1 429.1 3958.2 332.2

Net ARR and Revenue Gap ­ APCPDCL FY 2004-05 FY 2005-06 Proposed Approved Actual Proposed 4570.5 864.8 4035.5 281.8 4908.2 467.5 4914.6 933.5

Approved 4406.6 304.7

Actual 4888.9 251.6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

! CE $ !)5 )$ A CE

*J 6 CE 6J 4 , T , 9T = *J 64 = = 4 CE 6J 4 =

= 6 9T , *T

(Rs. Crores)

FY 2005-06 Proposed Approved 1321.6 1578.0 162.8 25.3 39.5 119.2 150.2 23.2 39.5 98.5

Table 2.47: Aggregate Revenue Requirement ­ APNPDCL

FY 2003-04 Proposed Approved 1637.7 1635.2 140.0 22.7 38.0 86.4 140.0 22.7 38.0 78.3 FY 2004-05 Proposed Approved 1243.5 1518.8 156.5 27.7 41.6 90.0 151.6 27.7 41.6 81.0

Purchase of Energy Employee Cost (Wages & Salaries and Contribution to Employee Funds) A&G Expenses (Including rent, rates and taxes; legal changes; audit and other fees) R&M Expenses Interest on approved loan and

TERI Report No. RP23

133

Security Deposits Depreciation Other Expenses and Special Appropriations Provision for Doubtful Debts Gross ARR Less: Capitalization Less: Non-Tariff Income Plus: Reasonable Return Total Net ARR Less: Efficiency Gains Less: Revenue from Tariffs Net Revenue Gap

Analysis and compilation of tariff orders

74.0 11.5 2010.2

71.6 21.2 2007.0 11.5 96.0 2.7 1902.2 54.0 1167.6 680.6

74.1 21.7 11.6 1666.8 19.9 113.3 1533.5 1162.9 370.6

69.6 23.3 1913.5 19.9 113.9 3.3 1783.0 60.0 1142.7 580.2

90.8 5.0 1764.2 33.6 138.3 1592.3 1073.9 518.4

86.4 -2.7 1973.1 13.1 138.3 3.2 1824.9 28.0 1076.0 720.9

22.2

94.4 1893.6 1143.1 750.4

Total Net ARR Net Revenue Gap

FY 2003-04 Proposed Approved 1893.6 750.4 1902.2 680.6

Net ARR and Revenue Gap - APNPDCL FY 2004-05 FY 2005-06 Proposed Approved Actual Proposed 1533.5 370.6 1783.0 580.2 1606.9 307.2 1592.3 518.4

Approved 1824.9 720.9

Actual 1882.6 631.3

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

CE = -

*J 64 = CE = 6J 4 = 4

= - 9 9T =

$$ !)5 * ,T & T , *T

(Rs. Crores)

Table 2.48: Aggregate Revenue Requirement ­ APSPDCL

FY 2003-04 Proposed Approved 2047.6 2024.7 197.1 33.4 48.8 89.2 102.8 13.9 2532.7 13.5 108.3 2411.0 1812.3 598.7 197.1 33.4 48.8 82.0 90.5 13.3 2489.7 5.7 1.7 103.3 2382.5 82.0 1803.9 496.6 FY 2004-05 Proposed Approved 1959.5 1920.2 218.4 39.0 39.6 103.2 118.9 3.9 18.9 2501.4 17.5 138.0 2345.9 1887.4 458.5 216.1 39.0 39.6 100.6 110.3 19.1 2444.9 19.0 2.9 147.2 2281.5 75.0 1795.9 410.7

Purchase of Energy Employee Cost (Wages & Salaries and Contribution to Employee Funds) A&G Expenses (Including rent, rates and taxes; legal changes; audit and other fees) R&M Expenses Interest on approved loan and Security Deposits Depreciation Other Expenses and Special Appropriations Provision for Doubtful Debts Gross ARR Less: Capitalization Less: Non-Tariff Income Add: Reasonable Return Total Net ARR Less: Efficiency Gains Less: Revenue from Tariffs Net Revenue Gap

FY 2005-06 Proposed Approved 2178.5 2131.5 229.7 36.8 31.7 124.4 141.6 11.4 2754.0 32.4 127.7 2593.9 1886.8 707.1 227.9 35.3 31.7 102.2 136.5 17.5 2682.6 18.0 2.3 127.7 2539.2 31.0 1902.1 606.1

TERI Report No. RP23

134 Analysis and compilation of tariff orders

Total Net ARR Net Revenue Gap

FY 2003-04 Proposed Approved 2411.0 598.7 2382.5 496.6

Net ARR and Revenue Gap ­ APSPDCL FY 2004-05 FY 2005-06 Proposed Approved Actual Proposed 2345.9 458.5 2281.5 410.7 2194.5 328.1 2593.9 707.1

Approved 2539.2 606.1

Actual 2609.1 641.7

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

- = $$ . !)5 ,T = 6J 4

-

- = CE = *J 6 H +T = = - $ )

= - & +T 4 CE 6 9T

Tariff Rate Balancing Approach to Tariff Determination

. ) J J. = H ;) . < = = @ ; = < = = 4 3 = = 0 ) . C ;C )< . - I 4 $ ) = ) $ J = ;D $ < P I / 4 C ) = C ) ;C ) < = = J D= 3 L 4 ; < 0 4A 4 ) 4 % 3 = ) H CE = -% = = J ,4 $ )

TERI Report No. RP23

135

Analysis and compilation of tariff orders

CE " . J

J &4 CE

&J *

CE

*J 64 ) .

0 0

) ) 3 = $ ) 0 H

4 4

3 = % J =

= 0

= -

0

4 0

0 C ) !. )H( I CE 4 J 5 H 6J ) 4 = ) . 4

J 4 ;(E < H CE

) J CE ) !. )H( CE +J 9 J H 4 % HG 3 ( ; ) < )

(

JE

= ) 3 - = 4 (E A (E

!. )H( = 4 ) H -

(E -

= )

-

New initiatives in tariff design

A ) , = 0 . ( H ) J - I D $ 4 ) ) .

TERI Report No. RP23

4 " '' * ! -

CE N 4

# # # &J *4 ) L

L

4 5 J 4 L =

-

2

;

136 Analysis and compilation of tariff orders < C = " L 4 = # # = . = = & T ( ) = 2 & C

3000

= ) ( CE ! " $ ) ,J 2 J 3 - 0 34

56

=

3 = = &,4 6 H

I = CE CE = =

J ,4 6J = 4

I - 6T

- 0 (@ = 9 ,, (@ 2 J

2672.5

2500

2660.0 2473.0 1734.8 1693.1

Sales (In MUs)

2000

2118.2

1500

1000

500

0 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 (Approved) FY 2005-06 (Approved)

Financial Year

Figure 2.9: Trend of Revenues from sales to HT-I category S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 200506)

-

( J &4 $ ) )

)

"

H -

4 4 H &J *

TERI Report No. RP23

137

Analysis and compilation of tariff orders

>

& 4 < 3

&

= 6 3 &

3 6 L H = = / > = 4 !

;

. 64 ) (

*J

*4 D $ 5 JF !< " = !. )H( = /

!

;

,4

& / !. )H( ) ; !< 4 )

H

&J * !. )H( !

= ) B -< = 2 ) -

H !. )H( " < < H

3 I *J 64

= 4

6J !

4

4 0 $ J = ! ) = 0 / 0 3 =

!. )H( ! = ( 4 = 4 0

!. )H( !

& H

# % ) ! N ) . !. )H( =

'

( ( ! $ ) H CE &J *4 75 J ) J J = 0 CE 2 6J = 4

4

= H CE

L *J 6

TERI Report No. RP23

138 Analysis and compilation of tariff orders

Category-wise Average Tariff

*9 &J *4 CE L *J 6 = CE = 6J L = 5 2 =

(Rs. Crores)

Average Realization 2.4 5.7 4.0 2.0 0.1 1.7 4.1 6.2 1.6 4.4 5.3 1.7 4.4 3.5 0.4 5.2 3.8 2.3

CE

Table 2.49: Approved average realization from FY 2003-04 to FY 2005-06

FY 2003-04 Category Low Tension Domestic Non-Domestic/Commercial Industrial Cottage Industries & Dhobighats Agriculture Local Bodies, Street Lighting and PWS schemes General Purpose Temporary Supply Sub-Total- LT Category High Tension Industry - General Industry - Other Irrigation and Agriculture Railway Traction Townships and Residential Colonies RESCOs Temporary Sub-Total - HT Category Total - HT & LT Category Sales 8205.8 1813.8 2240.6 32.8 11350.0 696.8 101.3 20.3 24461.3 5531.4 818.1 175.7 1155.4 182.4 1121.0 12.0 8996.0 33457.3 Revenue 1973.7 1071.8 930.9 7.0 363.0 146.3 41.0 12.6 4546.1 2376.3 435.1 29.4 531.5 58.4 48.8 6.3 3485.8 8032.0 Average Realization 2.4 5.9 4.2 2.1 0.3 2.1 4.0 6.2 1.9 4.3 5.3 1.7 4.6 3.2 0.4 5.3 3.9 2.4 Sales 7887.0 1795.0 1950.0 35.0 11450.0 1054.0 98.0 9.0 24278.0 6567.0 730.0 188.0 1152.0 197.0 1121.0 1.0 9956.0 34234.0 FY 2004-05 Revenue 1901.8 1018.9 801.6 7.4 409.2 205.3 39.6 5.6 4389.4 2607.4 391.2 33.9 507.0 69.0 52.7 0.5 3661.8 8051.2 Average Realization 2.4 5.7 4.1 2.1 0.4 1.9 4.0 6.2 1.8 4.0 5.4 1.8 4.4 3.5 0.5 5.1 3.7 2.4 Sales 8597.4 1970.4 2290.4 46.0 12646.8 1304.7 112.6 8.5 26976.8 7119.0 936.0 229.7 1205.3 244.3 666.1 1.8 11465.2 38442.0

FY 2005-06 Revenue 2039.2 1128.3 923.2 9.1 67.1 221.0 45.7 5.3 4438.8 3139.9 499.0 38.9 530.4 85.5 26.7 0.9 4321.4 8882.4

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

5

-

= 4 )

- = N 2 = JOJ= = 3 ,, 5 2 =

J

=

L G =

= = C L , J J =

L

2 G5 L =L =

= = =

TERI Report No. RP23

139

Analysis and compilation of tariff orders

250.0

200.0

192.3

187.1

194.6

150.0 %age

135.2

135.5

137.0

100.0

78.3

79.5

80.6 67.4

50.0

69.3

69.2 11.8

10.4

1.8

FY 2003-04 FY 2004-05 FY 2005-06

Domestic Industrial Agriculture

Non-Domestic/Commercial Cottage Industries & Dhobighats

Figure 2.10: Average Realization/Average Cost ­ LT Category S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 200506)

160.0 140.0 120.0 100.0

149.7 139.8

145.1 149.9 149.6 130.9 115.4

119.0

104.1

80.0

59.5

60.0 40.0 20.0 FY 2003-04 FY 2004-05

54.4 14.2 15.5

57.5

13.6

FY 2005-06

Industry - General RESCOs Townships and Residential Colonies

Railway Traction Irrigation and Agriculture

Figure 2.11: Average Realization/Average Cost ­ HT Category S O U R C E Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

-

-

= J = - = D $

-

*9 N !. )H( = CE

5 = 6J 4

4

TERI Report No. RP23

140 Analysis and compilation of tariff orders *J 6 H = ; < 2 J . )H H = 4 = 6J CE 4 CE = + ,T 6J

2 5 J L !. )H( +& T

4

CE

&J *

CE

Cross Subsidy

C - I H H 4 = < L D $ 4 L = 4 = = J = CE 6J = = J = 4 ) J CE 6

(Rs. Crores)

FY 2005-06 779.8 3.0 1176.2 166.2 8.9 80.5 2214.5

4 $ ) L

6J T L ;2 J 4 =

*J 6

Table 2.50: Amount of Cross Subsidy over the years

Category Domestic Cottage Industries LT-Agriculture Local Bodies HT-Agriculture RESCOs Total FY 2004-05 655.1 2.4 821.2 147.9 6.5 121.5 1754.6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

Convergence Index (CI)24

24

The Convergence Index measures the extent to which the average realization from each category converges towards the overall average realization. C.I1 = {[(ARc/OAr)-1] 2 Fc / Fc} Where C.I = Convergence Index ARc = Average realization of each consumer category (Rs/kWh) OAr = Overall average realization (Rs/kWh) Fc = Revenue from each consumer category (Rs. Crores) Any improvement in terms of tariff rationalisation gets reflected in a reduction in this index after a change in tariffs by the regulator. Hence the index captures the movement of the realisation from each category to the over all average realisation, i.e., to what extent each category pays the same tariff. If for all consumer categories, the average tariffs are equal, then the ratio of these two (ARc/OAr) will be 1 and hence the Convergence Index will become Zero. Such an index can give perverse findings if the HT tariffs are below the average cost and LT are above the = . - 3 =

TERI Report No. RP23

141

Analysis and compilation of tariff orders

= C

0.6000 0.5800 0.5600 0.5400 0.5200 0.5000 0.4800 0.4600 0.4400 FY 2003-04 (Actual) FY 2003-04 (Approved)

0.5185 0.5800

) ,

CE

&J *

CE

6J

0.5249 0.4877

FY 2004-05 (Approved)

FY 2005-06 (Approved)

Figure 2.12: Convergence Index for Andhra Pradesh

S O U R C E TERI estimates

- L 64 -

= CE

- = CE 6J

= &J *

CE

*J

Subsidy Support from Government

4 ;C )< = C ) 0 L D $ 4 C ) D $ ) !. )H( CE &J *4 9 + + !. )H( H 9 & 4 4 ) 4 = 4 ) = 9 &6 4 3 = D $ &96 9*+6 + ) = , *+ 9 = H C ) /. 3 4 = C 4 . )H D $ ) 3 ) .- I = 4

!. )H( =

=

Ideally, the average realisation from each consumer category should be equal to the cost incurred in serving that category. Thus, if a voltage wise classification is used average tariff from each category should equal the cost at the respective voltage level. However, it has not been used for all the states in this study due to non availability of as data.

TERI Report No. RP23

142 Analysis and compilation of tariff orders D $ D $ L !. )H( 4 CE &J * = +9 , ) 9&6* 6 = CE *J 6 3 3 ,6,& 6 -

CE *J 64 9 6* * , !. )H( ) & C ) D $A 3 + 6, 4 = ,& & D $ !. )H( CE 4 6J ) , 6 CE = 6J 4 ,,* = &

-

, 9 !. )H( C = C ) CE 6,

(Rs. Crores)

, *+, 9 ,699 6 4 &J * CE

Table 2.51: Subsidy amount

Customer Category Domestic Cottage Industries LT Agriculture Local Bodies HT Agriculture RESCOs Total FY 2003-04 730.0 1.7 664.7 45.3 1.0 70.9 1513.5

6J - D $

FY 2004-05 486.3 1.8 610.0 109.8 4.4 91.0 1303.3

FY 2005-06 544.4 2.1 871.2 117.5 6.4 57.9 1599.5

CAGR -13.7% 12.1% 14.5% 61.1% 150.7% -9.6% 2.8%

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

- = . )H H

D $ 4

3 2 =

5

4

5 D $ = = 6 CE

&J *

CE

6J

TERI Report No. RP23

143

Analysis and compilation of tariff orders

Table 2.52: Revenue Gap (FY 2003-04 to FY 2005-06) ­ In Rs. Crores

FY 2003-04 APEPDCL APCPDCL APNPDCL APSPDCL Total Approved -4.10 332.22 680.59 496.58 1505.29 Actual 49.9 231.2 23.3 34.6 339.0 FY 2004-05 Approved 31.5 281.1 580.2 410.4 1303.2 FY 2005-06 Approved 32.2 -304.6 -720.9 -602.1 -1595.4

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

- I 4 ) L

Treatment of financial loss - Pass-through mechanism

H D $ CE 4 % ) = ) - " - J 0 ,J ) = 4 = J = = CE 4 &J *4 $ ) = $ ) J & -

- J I *J 64 ) S J P 3 !. )H( J $5 G !. )H( $5 G = 2 TERI Report No. RP23

-

- =

J =

H

) /

.

) J -

=

144 Analysis and compilation of tariff orders = 6& 3 L ) " P J

Table 2.53: True-up on various expenditure items

Items Power purchase cost Wages, Salaries and PF Administration and General Expenses Rent, Rates and Taxes Repairs Interest Depreciation Special Appropriations: Debt Redemption Obligation Income Tax Working Capital Reasonable Return Controllable/Non-controllable Non-controllable Controllable Controllable Controllable Controllable Controllable Controllable Controllable Non-controllable Controllable Non-Controllable Need for true-up Generally through Fuel Surcharge Adjustment (FSA) True-up not required True-up on filing of tax returns No true-up required True-up linked to capitalization of capital works No true-up True-up on filing of returns No True-up Variations on account of net capital base and loans

Source: Tariff Orders issued by APERC (FY 2005-06)

!. )H( &J *

J CE *J 6

6*"

CE

Table 2.54: Special Appropriations for DISCOMs under Pass through mechanism

Financial Year(s) 2003-04 2004-05 2005-06 Amount (In Rs. Crore) (8.3) 86.1 16.6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

J 4 $ ) !. )H( = H ,++ ) C3 3 = 0 = ;H)C < % = = L 34 6T 3

Governance Public participation

= 0 4 C = -% 4 4 = L 4 ) = 4 0 - I = 4 $ ) 0 D $ 66" =

TERI Report No. RP23

145

Analysis and compilation of tariff orders

Table 2.55: Level of public participation in public hearings

Year FY 2003-04 FY 2004-05 FY 2005-06 Time given for filing comments/objections (days) 33 35 40 10 11 19 No. of written objections Total no. of participants 74 95 185

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

-%

-

= CE 2

- =

-

*J 64 ) - ; $ !)54 $ $ )$ !)5 $$ !)5< ; $$ . !)5< = !. )H( 4 CE 6J 4 $ ) 2 - ; $ !)5<4 A )$ ; $$ !)5<4 F 0 ; $$ !)5< ; $$ . !)5< ) 4 96 CE *J 6 ,+6 CE 6J !. )H(J - 0J -% = = 6 "

Table 2.56: DISCOM-wise break-up of objections received

Year FY 2003-04 FY 2004-05 FY 2005-06 APEPDCL 02 01 15 APCPDCL 12 13 23 APNPDCL 05 03 36 APSPDCL 55 62 96 Common to DISCOMs 16 15

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

L ) " 3 ) -% 4 !. )H( = CE *J 64 H = ? 2 J = 4 ) ) P 0 -% H

-

4 = 4 CE &J * = -

) ) , NC J ) 0 4

4

J

TERI Report No. RP23

146 Analysis and compilation of tariff orders - = 4 4 ) 4 ; J <

H

CE *J 64 !. )H( 4! -

Timeliness of Tariff Orders

L ) 4 4 6J = ) = ) . = L ) H D $ ;. )< CE -% 4 - 0

& , 6 $ )

) = -

Table 2.57: Timeliness of Tariff Orders issued by APERC

Year Date of filing of petition Date of Issuance of Order 24-03-2003 23-03-2004 22-03-2005 Days from acceptance to issuance 114 119 112

FY 2003-04 31-12-2002 FY 2004-05 24-12-2003 and corrigendum to ERC filing on 26-12-2003 FY 2005-06 30-11-2004 and addendum filings (after introduction of new agriculture policy) on 07-02-2005

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

=

- =

$ ) H

Consumer Advocacy and Redressal Mechanism

CE J &4 $ ) = = = I 4 &4 .- I C *4 S J L = = = F H TERI Report No. RP23

S ) 3 0

. )

P

=

) C

F

H I

P

147 =

Analysis and compilation of tariff orders

4 ) D = C

!. )H( = "

=

Table 2.58: Status on Consumer Grievance Forum

Forum of DISCOM APEPDCL APCPDCL APNPDCL APSPDCL Date of operationalisation of the Consumer Grievance Forum 26-02-2005 08-01-2005 06-01-2005 06-01-2005

Source: Information provided by APERC

C . H 64 $ 3 J ) 4 . =

) ) H !. )H( 4 $ ) H !. )H( ; 3 I CE $$ !)5< = F

) C -J $ )

6J

4

) = . 4 ) - 0 -J = CE I = 2 = 4 = H = ; = !. )H( H . J

!. )H( J !. )H( = - 0 CE J L J 4 !. )H( <

Anti-theft measures

!. )H( S ) C $ TERI Report No. RP23

0 ;) = 4 $ I ;!$ <P . I = <P L !. )H( ; $. <P S ! 0

4 $

S $

148 Analysis and compilation of tariff orders 4

Key Regulatory Initiatives

) = ( ! . ( ;(/(< ( JE (E = - $ ) 4H 4 ( J/ ;(E < A (/( - I 4 !. ( H = =

Demand Side Management (DSM) measures

CE = L !. ( 6 T C J 2!$ . 0 ) 4 " = = = I ) ; CE !. ( ) !. ( = ! CE -% !. )H( = = 6J 4 ) !. ( = 4 = I 0 J C J 3 0 = = !. ( ) 2 = 4 I !. ( ) I !. )H( = H *J 64 ) C = 4 = S J J H CE = P J &< ,J 4 $ ) = · · · ·

.

H

-% = = 0 0

TERI Report No. RP23

149

Analysis and compilation of tariff orders

Introduction of Open Access

* ;&< S H $

Table 2.59: Phasing of Open Access in Andhra Pradesh

Phase 1 Eligibility Criteria Consumers availing of power from NCE developers irrespective of the quantum of contracted capacity 2. 3. 4. Contracted capacity being greater than 5 MW Contracted capacity being greater than 2 MW Contracted capacity being greater than 1 MW September 2005 September 2006 April 2008 Commencement Date September 2005

;H < 0 P > 6 H

&4 $ ) J ; 69<

Source: Information provided by APERC

) H . S . ) = C I 2 ; = 4 = H B< =< $ 0 H = 3 J = ,6J

L A H - 0 - = 4 J . ) ,

P P

S /

) J

) H H P 0 <4 H <) = .B <)

=

= 4

= 4 H

= 4

= -

Appeals against Orders

. 4 . ) = 2 ) ) = 4 $

TERI Report No. RP23

150 Analysis and compilation of tariff orders

Table 2.60: Summary of appeals against APERC

Legal Status Appeal Total number of appellant Subject Pending Dismissed partly allowed Appeals/Writ Petition before the Supreme Court of India Appeals before the Supreme Court: Tariff Order for FY 2000-01; Supply of energy by APGPCL requires license; Power of the Commission to direct the 16 Malavalli Power Plant (MPP) to supply energy produced to APTRANSCO; Payment of cost of fuel to APTRANSCO; Levy of wheeling charges by the Commission; Levy of Grid Support Charges by the Commission Appeals/Writ Petition before the High Court of Andhra Pradesh Supply of energy by Non-conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) units to third parties; Directive to MPP to supply power only to APTRANSCO; Rate fixing for developers of non-conventional energy to supply energy to APTRANSCO; Powers of the Commission to review policies issued 262 by GoAP; Prohibition of third-party sales by mini-power projects; Tariff Order for FY 2000-01, FY 2001-02, FY 2002-03, FY 2003-04; Appeals against order of APERC on Wheeling Charges and Grid Support Charges; Issues relating to Captive Power Producers; Petitions with regard to license or exemption; Cases under Section 44 of the Electricity Supply Act Appeals with Lok Ayukta 52 178 63 7 2 13 10 2 4 Verdict in favour of appellant Withdrawn

Source: Website of APERC Website:

- =

. = = 4 H , CE 6J ) 2 )

$ ) H =

= C

)

TERI Report No. RP23

151

Analysis and compilation of tariff orders

Table 2.61: Number of cases received and resolved by DISCOMs

Forum of DISCOMs APEPDCL APCPDCL APNPDCL APSPDCL Total No. of Cases Received 158 24 73 87 342 No. of cases resolved 149 20 64 86 319

Source: Information provided by APERC Table 2.62: Nature of complaints received by the Forums

Nature of Complaints Billing related O&M related Release of new services Category change Title transfer Theft and malpractice Complaints against staff Meter Shifting Disconnection of Supply General Total APEPDCL 14 4 6 24 APCPDCL 75 30 27 5 5 16 158 APNPDCL 27 17 6 5 1 7 7 3 73 APSPDCL 23 14 4 1 2 43 87 Total 139 51 33 24 10 23 7 1 2 52 342

Source: Information provided by APERC

H -

=

-

F -

&

Table 2.63: Cases handled by the Vidyut Ombudsman

Forum of DISCOMs Number of appeals received Number of appeals disposed S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Nature of Grievance Excess/Back billing due to meter defect/alleged suppressed consumption/wrong reading Regarding development charges Procedure for replacement of burnt meters Back billing at HT Tariff Defect in DTR Structure and LT line for new connections Categorization Capacitor Surcharge Fixing of meters outside the shops Refusal of shifting of service to new premises Delay in change of name of consumer Allowing supply to tenant Related to agricultural services Miscellaneous FY 2005-06 11 7 FY 2006-07 (Till September 2006) 21 12 Number of appeals 9 3 2 1 1 3 3 1 1 1 1 4 2

Source: Information provided by APERC

- = -

-

C

Staffing

H ) ) &6

TERI Report No. RP23

- 6

) 4 ,9 4 4

152 Analysis and compilation of tariff orders ) 5 ! . C ! = 0 H . ) 4 D H I % = ) 4 4I ;. )< , $ ) 4 ) - 4 .) 4 = 4 4 4 ) > ! . 4 4 4

4

-

4

Directives Issued by APERC and their Compliance

6 CE H 6J 4 = = A H 64 Table 2.64: Appeals received by Vidyut Ombudsman

Financial Year FY 2003-04 FY 2004-05 No. of Directives Complied 17 15 10 7 Status of Compliance Partially 5 6 Not Complied 2 2

= LCE ) = !. )H( H - $ . )H CE

&J *4 CE

*J 4

= L

CE &J * !. )H(J

*J 6

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

153 Analysis and compilation of tariff roles

Table 2.65: Status of Compliance to APERC Directives by the Distribution Licensees Directive APEPDCL APCPDCL Defaulters' List: DISCOMs to post on their website, the list of all defaulters Complied. Data on dues as on Complied whose dues exceed Rs. 50,000, along with the reasons for non-collection September 30, 2006 on the licensee' website s and details of litigation. Updation to be carried out every six months. APNPDCL Compliance ongoing APSPDCL Complied. Updated list as on September 2005 placed on APSPDCL website

Consumer Passbooks: DISCOMs to issue consumer passbooks to all consumers

Not complied.

Limited response of consumers to utilize the passbook facility

Passbooks being Compliance ongoing maintained and updated for agricultural services. Requested APERC to reexamine the directive in light of spot billing being implemented by the DISCOM

APEPDCL has estimated that Complied: Additional power Estimates provided in the 24-hour supply to Rural Areas: DISCOMs to estimate the additional power requirement to provide 24-hour supply to rural areas and identify the there would be 33% increase requirement specified in the ARR filing for FY 2006-07 in consumption on account of ARR filing generation sources to procure additional energy extending 24-hours supply to rural areas. This would be an increase of 266 MU for FY 2005-06

Submitted as part of the ARR Filing for FY 2006-07

TERI Report No. RP23

154 Analysis and compilation of tariff orders

Directive APEPDCL Display of LV Side Meter Data: DISCOMs to display a permanent display Compliance ongoing board at every circle/district headquarters and post details such as number of services, metered DTRs and DTRs providing valid readings. Compliance by 15th of every month

APCPDCL APNPDCL Monthly information on Compliance ongoing estimated agricultural consumption being displayed mandal-wise at circle HQ and at the corporate office

APSPDCL Even though APSPDCL is maintaining the information on LV side Meter Data, the same is not available in public domain as directed by the Commission

ToD Metering: Licensees to propose specific proposals for introducing ToD APEPDCL has estimated that Complied metering for large consumers with details on metering facility, consumption there exist 61 HT consumers having ToD facility. The circlepattern and proposed incentive. To be submitted by June 31, 2005 wise status is: Srikakulam-13, Vizianagaram - 5, Visakhapatnam - 13, Rajahmundry - 15, Eluru - 15. The licensee has carried our mock billing in Rajahmundry circle for the month of September 2005

Study on ToD conducted by KPMG for January 2004 to March 2004. The study shows that system curves were reasonably flat during this period.

Study on ToD metering conducted by KPMG. The study shows that it is feasible to introduce ToD metering. Load Research Center has not been established.

Payment of HT Incentive: There should be no lag in passing on the load Complied. factor incentive amount to the HT Category -I (A) consumers from the billing month of October 2005 Payment of Testing Fees: DISCOMs to make requisite arrangements to receive payments for meter testing fees at the bill collection centers Complied.

Directive complied from month of October 2005

Directive complied from month of October 2005

Directive complied from month of October 2005

Complied

Compliance ongoing

Compliance ongoing

TERI Report No. RP23

155

Analysis and compilation of tariff orders

Directive Reconnection Charges: The licensee cannot collect any recollection charges unless the connection has actually been disconnected Consumer Agreements in Telugu: DISCOMs to initiate action for execution of agreements in Telegu

APEPDCL Complied.

APCPDCL Compliance ongoing

APNPDCL Compliance ongoing

APSPDCL Compliance ongoing

Complied.

The same is in the process The same is in the process Not complied. of being complied of being complied Complied.

The functioning of Incentive Compliance ongoing Review of HT-Incentive Scheme: DISCOMs to make a detailed review of The details of HT Incentive the working of incentive scheme during the first half of FY 2005-06 Scheme submitted to APERC sheme for the period FY 2005-06 reviewed and on December 21, 2005 analysis submitted with the filings

Capital Investments: For inclusion of capitalized work in the OCFA, the DISCOMs have to submit to APERC a PCC and FCC within 60 days of completion of work

Steps initiated to furnish PCC and FCC are being Compliance ongoing. collected from all operational FCC and PCC for capitalized circles works Information from Sales Database for September 2005 was submitted to APERC Load Research Cell has been established. Being headed by a Superintendent Engineer. Compliance Ongoing.

Not complied.

Complied. Sales Database: Sales forecast for FY 2006-07 should be circlewise/district wise. Further, the licensees need to separate the sales at each operation circle/district category-wise w.e.f April 2005 Consumer Load Profile and Load Research Cell: DISCOMs to conduct a APEPDCL collecting feederwise hourly load profile of survey of load profiling methods and adopt suitable method for profiling. APERC directed the licensee to comply with this directive by August 2005 different consumer categories. However, Load Research Cell not established.

Complied.

Consumer load profiling being carried out by the Energy Audit wing. Yet to establish a separate Load Research Cell

Complied.

Railway Tariff: DISCOMs to propose two-part tariff for Railway Traction category in tariff proposal for FY 2006-07

Complied. Two-part tariff proposed in the filing for FY 2006-07

Complied. Complied. Two-part tariff Complied. Two-part tariff proposed in the filing for FY proposed in the filing for FY 2006-07 2006-07

Source: Tariff Orders issued by APERC (FY 2003-04, FY 2004-05 & FY 2005-06)

TERI Report No. RP23

156 Analysis and compilation of tariff roles

Measures to improve Quality of Service (QoS)

) I = G ! H CE &J *4 ! !. )H( = CE 3 = - I = * ,,0F = CE $ I 4 / *+ 2L CE ,999J = = 66 6J 4 . )H ) P !. )H( = 2F !. H 4 &J *4 0 ; 9T< 0 ) 2 = 4 + ,T CE ,999J 3 , P ! ,T = = 4 ) = ) ! !. )H( I 4 4 ! = -

3

I *9 + 2L CE -

= &J && 0F =

Power sector rating

( $ *4 CE *J 6 = CE 6J $ ; ;D <4 CE < &J

Table 2.66: Rating of Andhra Pradesh

FY 2003-04 Rank Score 2 56.8 FY 2004-05 1 57.0 FY 2005-06 1 55.8

Source: Power Sector Rating, Ministry of Power, Government of India

$

4

0

4 4 2 S H " J P 4

= 3

!

T E R I Report No. 2006RP23

157 Analysis and compilation of tariff orders ( = = 2 5 2 = 9 = 4 = CE = = 3 ,,T 4 = *J 6 +T 6 T

Regulations issued

= $ ) -

Table 2.67: Regulations Issued by APERC

Final/Draft Regulations Draft Regulation on Transmission Licensee Standards of Performance Draft (Third Amendment) Regulation to APERC (Conduct of Business) Regulations 1999 Draft Regulation on amendment to Conduct of Business Regulations APERC Draft (Terms and conditions for determination of tariff for supply of electricity by a generating company) Regulation APERC (Interim Balancing and Settlement Code for open access transactions) Regulation APERC (Levy and collection of fees and charges by state load despatch centre) Regulation APERC (Intra-state Electricity Trading) Regulation APERC (Terms and conditions for determination of Transmission Tariff) Regulation APERC (Terms and Conditions for determination of Tariff for Wheeling and Retail Supply of Electricity) Regulation APERC (Treatment of Other Businesses of Transmission Licensees and Distribution Licensees) Regulation APERC (Terms and Conditions of Open Access to Intra-state Transmission and Distribution Networks) APERC (Levy of fees for various services rendered by the Commission) Regulation APERC (Transitory Provisions for Determination of Tariff) Regulation APERC Deemed Licence Conditions Regulation Regulation on Licensee's Standard of Performance APERC (Security Deposit to be paid by consumers) Regulation Regulation on Electricity Supply Code APERC (Procedure for filing appeal before the Appellate Authority) Regulation APERC (Licensees' duty for supply of electricity on request and recovery of expenses for providing electric line for electrical plant) APERC (Constitution of State Advisory Committee and its functioning) Regulation APERC (Establishment of Forum and Vidyut Ombudsman for redressal of grievances of consumers) Regulation APERC (Conduct of Business) Amendment Regulations APERC (Consumer' Right to Information) Regulation s APERC (Standards of Performance in connection with Electricity Supply to Consumers) Regulation APERC (Appointment and Payment of fees to Standing Legal Counsels) Regulation APERC (Method of Recruitment and Conditions of Service of officers and staff) Regulation Regulation on Business Rules of the Commission APERC (Constitution of Commission Advisory Committee (CAC) and its functions) Regulation Year of Issue 2006 2006 2006 2006 2006 2006 2005 2005 2005 2005 2005 2005 2004 2004 2004 2004 2004 2004 2004 2004 2004 2000 2000 2000 1999 1999 1999 1999

Source: APERC Website: www.ercap.org

Conclusion

$ ,999 $ ) $ / . $ . )H $ D )H .- I 4 4 $ . )H * ; $$ !)54 $ !)54 $ $ )$ !)5 $$ . !)5<

T E R I Report No. 2006RP23

158 Analysis and compilation of tariff orders A 0 = ) ( ( 4H JE " !. ( 0 3 H 4 ) = !. ( " ) J 2 H ( / H ( ; = 4 3 = 3 J ;(E < = = = C !. )H( J 0 4( J/ ( 4 = $ ! . ;(/(<

-

;(/(<" D $ = < - 0 ;$ < $ !. )H( A ( J" CE JE J 6 4 ) ;(E < H CE 2 CE &J J 0

$ .

. )H 4 J(/(

(

E

( !. )H( CE +J 9 3 $$ !)54 !. )H( * CE 6J 4 5 A = $ *J 6 -

J $ ) = - I G 3 D = C !. )H(

4

CE 6J !. )H( $$ !)5 = = . 5 ;) . <4 )

CE = G 3 ( = 4 4

$$ . !)5 4 $ ) ) 2 P = 2 = 4 =

T E R I Report No. 2006RP23

159 Analysis and compilation of tariff orders S = . 2 ) P -

H = K

) 3 3 4 )

= - 0 - 0 = 4 = 4 L = = = LCE &J * CE 6J . 4 ! 4 = I = 4 = = 2 = 4 3 J CE 0 45 . ) 0 = ) = 2 ) 4 ) 6J = JOJ= CE JI 4 = *J 6 I

)

T E R I Report No. 2006RP23

160 Analysis and compilation of tariff orders

CHAPTER

3 Assam

) ) + C , , ) ) ) 3 ;< < ; 3 ) &; &4 ) ; ) <4 ,99+

Introduction

&< 3 + . J & C CE H , = ! 4 &J * *4 4 ./ . . D= )

> ) / CE

*J 6

; . /< > * ;D <

CE

D= 4 D= ./4 -

J= =

, 2 .* 3 1

%. . . 2 .* 3 1

*

1 @ * ;. @< 1

& 1 1 ( * * 1 -

%" 21 4 ./ 2* 4? "* 3 1

(

* D

% 4

4/ %" "* 3 1

4

? 0 % ( * L 4 ./ % %

)2

) %" ( *

6 7 1 !)

27

"* 3 1 4> 45 0 ./ = (

.CE 6J

- =

6

T E R I Report No. 2006RP23

161 Analysis and compilation of tariff orders

Demand supply gap

J = CE CE I 6J 0 *J 6 & T ,, ,T CE 6J CE *T J & 6 T

Movement in Installed Capacity

2 (A CE J , CE , +, (A CE &6 9 (A 4 = L&6 9 (A 9 (A & T 4 4 , 9 (A =

&J * *J 6 = (A , (A

J , 9 (A CE *J 6 -

*J 64

69 ,9 (A = J 4 , (A CE J ,4 CE *J 6 * 6 (A4 *J 6 4 =

) (A

CE

& CE J , 6 + (A CE *J 6

+

FY 2002-03 in retrospect

CE = J & - &, ./ +, , )

Table3.1: Cash operating losses of ASEB in FY 2002-03

Description Expenses Earnings Net Loss Depreciation Cash operating losses Rs Crore 1228.83 834.82 394.01 112.85 281.16

.

"

./

CE

&J *

Consumption and Access Sales/Demand estimation

./ % CE *J 6 ,9

T E R I Report No. 2006RP23

162 Analysis and compilation of tariff orders (@ CE ) = ) D *J 64 = = ,* +T = 4 CE &J * B -

CE -- B ! 6J ) = = CE 6J

CE 6J 4

*J 6 ,9+9 (@ 4 - 04

./ 4 G

4

5 %

!)54 )

!)54 @ ) ,* (@ = 4 4 = &J *4 CE

!)54 CE

& (@

- & CE

4 *J 6

Table 3.2: Sales for FY 2003-04, FY 2004-05 and FY 2005-06 (MU)

Proposed FY 2003-04 FY 2004-05 FY 2005-06 NA 2190 2142 Approved NA 2190 2203 Actual 1907 1989 2242

Source: Tariff orders issued by AERC

. ,J ,< 6J

= ) D ) D 6&T *9 T

= CE ,99 J9 CE ,J

CE CE

0 <4 4

J 0 ;

0 =

./ = -

0

Category wise sales

. = CE ,99 J9 = % % C &, = 3 = 4 4

T E R I Report No. 2006RP23

163 Analysis and compilation of tariff orders

900 800 700 600

MU

500 400 300 200 100 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 ! ) 4) G --

Figure 3.1: Category wise movement in sales Source: Tariff orders and Annual Statement of Accounts of ASEB

H G CE J & 2 = 4 = 4 ) D , TCE ,99 J9 CE 6J 4 = 4 CE ,J ) D J& &*T CE J , J *T ) - = 4 = ) D 6 CE *J 64 = ) = - && / CE *J 64 2 = 4 =

-

J

,99 J9

=

Table 3.3: Sales in FY 2004-05 - Proposed, Approved and Actual (MU)

FY 2004-05 ASEB FY 2004-05 AERC Scenario 1 (approved) 855 237 52 6 34 16 307 264 353 60 6 2190 FY 2004-05 AERC Alternative Scenario 2 815 224 57 5 34 17 272 273 252 42 6 1997 FY 2004-05 Actual

Domestic Commercial General Purpose Supply Public Lighting Public Water Works Irrigation Industries Bulk Supply Tea, Coffee and Rubber Oil & Coal Temporary Supply Total

855 237 52 6 34 16 307 264 353 60 6 2190

791 223 52 6 33 16 334 238 250 46 1 1990

T E R I Report No. 2006RP23

164 Analysis and compilation of tariff orders

Source: Tariff orders and Annual Statement of Accounts of ASEB

CE ,9 (@ = B 9, (@ ) 3 = = 0 C CE = 3 3 6J 4 = = )

*J 6 = 4

9 ,&T,99 (@B 4 CE 3 = ) 6J

= (@ -

./ 2

= 4 - &* CE 6J =

Table 3.4: Proposed and approved sales for FY 2005-06

FY 2005-06 Category Jeevan Dhara Domestic Commercial General Purpose Supply Public Lighting Public Water Works Irrigation Industries Bulk Supply Tea, Coffee and Rubber Oil & Coal Temporary Supply Total Proposed (MU) Not applicable 868 251 57 7 34 17 338 258 270 41 1 2142 FY 2005-06 Approved( MU) 100 796 250 60 7 34 16 322 275 300 43 2203 Change % 3.28% -0.55% 4.53% 0.86% -0.70% -7.51% -4.73% 6.64% 10.98% 5.65% 2.83%

Source: Tariff orders and Annual Statement of Accounts of ASEB

S 5

P

CE J> = =

6J !

4

) A

4 7 CE I 0 / = = *J 64 ) -

)

./ = J = = N ./

CE

T E R I Report No. 2006RP23

)

6J

165 Analysis and compilation of tariff orders

Number of Consumers and Connected Load

CE = J & CE CE ? > , &*T - = 4 ) J , *+9 6 2 CE = 4 &J * CE 6J 9 CE 6J 4 9* ) D & *J 6 *J 6 = 4

CE &J * &,T 3 9 T

&J *4 CE

- 0 *J 6

66 CE > = ! % CE 6J

6J

4CE

=

- &6

Table 3.5: Category wise number of consumers

Consumer category Jeevan Dhara Domestic Commercial Industries Tea, Coffee and Rubber Others* Total FY 2003-04 901330 126717 9413 934 21439 1059833 FY 2004-05 958124 130382 9733 841 22991 1122071 FY 2005-06 168154 933428 136205 10286 902 26,250 1275225

Source: Tariff orders and Annual Statement of Accounts of ASEB *Others include irrigation, public lighting, Public water works, bulk, oil & coal, tea, etc.

- & % 6J

= CE

-

0 &J *4 CE

*J 6

CE

Table 3.6: Category wise connected load (kW)

Consumer category Jeevan Dhara Domestic Commercial Industries Tea, Coffee and Rubber Others* Total FY 2003-04 933364 237578 291023 298336 278853 2039154 FY 2004-05 1001659 248132 312845 284272 286162 2133070 FY 2005-06 70598 1060753 267004 368089 289946 358586 2414976

Source: Tariff orders and Annual Statement of Accounts of ASEB. *Others include irrigation, public lighting, Public water works, bulk, oil & coal, tea, etc

4

T E R I Report No. 2006RP23

CE

166 Analysis and compilation of tariff orders &J * = 3 - &

Table 3.7: Consumer mix and connected load mix

Consumer mix 13.19% 73.20% 10.68% 0.81% 0.07% 100% FY 2005-06 Connected load 2.92% 43.92% 11.06% 15.24% 12.01% 14.85% 100.00%

CE

*J 6 )

-

=

Jeevan Dhara Domestic Commercial Industries Tea, Coffee and Rubber Others Total

Source: Tariff orders and Annual Statement of Accounts of ASEB

- = $

0 = - &+

-

Table 3.8 : Per consumer load (kW/consumer)

Jeevan Dhara Domestic Commercial Industries Tea, Coffee and Rubber Others Total FY 2003-04 1.04 1.87 30.92 319.42 13.01 1.92 FY 2004-05 1.05 1.90 32.14 332.09 12.45 1.90 FY 2005-06 0.42 1.14 1.96 35.79 321.45 13.66 1.89

Source: Tariff orders and Annual Statement of Accounts of ASEB

= 4 --

, 9 0A4 4

A

= &

4

3 4 I

-3 , T

C

T E R I Report No. 2006RP23

167 Analysis and compilation of tariff orders

Others 22%

Jeevan Dhara 2% Domestic 29%

Tea, Coffee and Rubber 16% Industries 16% Commercial 15%

Figure 3.2: Contribution to revenue by major categories Source: Tariff order for FY 2006-07 (Actual figures)

- &9

=

=

Table 3.9: Revenue per unit of sale for different categories

Category FY 2005-06 Jeevan Dhara Domestic Commercial Industries Tea, Coffee and Rubber Others Total Revenue Rs. Crore 14.95 279.435 141.77 156.96 154.8 211.455 959.37 Sales MU 100.00 796.00 250.00 322.00 300.00 435.00 2,203.00 Rs/kWh 1.50 3.51 5.67 4.87 5.16 4.86 4.35

Source: Tariff orders and Annual Statement of Accounts of ASEB

-

4

--

=

Status of rural electrification

@ ; D F D E< = %=D , & D - ( *) F $ - &, 0 E % 64

Table 3.10: Rural Household Electrification

Total number of rural Households 4220173 Households having Electricity 697842 % Electrified Households 16.5 Unelectrified Households 3522331 % Unelectrified Households 83.5

Source: www.powermin.nic.in

T E R I Report No. 2006RP23

168 Analysis and compilation of tariff orders = 6, *< = D F D E4 = !. )H(. = CE J 1 = 4 *T; *& @ ,*

Efficiency improvement Approach for fixing loss reduction targets

C ) ./ G ! < ; I 3 = CE &J * CE *J 64 / ) & 6T = & 6T & 6T

CE =

6J =

4

) G ! ) 6J 6 &+T4 & T & +T @ !)5 = ) - , 6T ! ) ! = " ( = ! = ! =

2

5

!)54 ) 3

CE !)54

= = ! 6 T CE J 4

! , 6T4

=

Source: Ministry of Power website accessed on November 20,2 006 http://powermin.nic.in/bharatnirman/progress%20on%20electrification%20of%20villages% 20&%20households.pdf

1 2 The reason behind including trading sales is that the transmission tariff payable to PGCIL amounting to Rs.0.35 per unit is a UCPTT (Unified Common Pool Transmission Tariff). The background of UCPTT is that number of state sector transmission lines are utilised for wheeling central sector energy from CSGS to other constituent states of the North East Region. All energy accounting of CSGS is done on the basis of Energy Sent Out of respective generators. The Commission therefore is of the opinion that total energy available after deducting central loss should be considered as total energy available for sale. All export of energy outside the region is delivered at the interregional point at 220/400 kV Bongaigaon Bus.

T E R I Report No. 2006RP23

169 Analysis and compilation of tariff orders

) D CE ; = J ,< G ! ;J< < * T

& T

6 ) ;CE ,99 J9 C && CE ,99 J9 CE J

6 * &

T T T T

,

T T

,99 J9+ ,99+J99 J , ,99 J9 ,999J ,J & &J * *J 6 6J J

Figure 3.3: T&D loss in Assam from FY 1996-97 to FY 2006-07 Source: (i) Tariff orders for FY 2004-05 and FY 2005-06 (ii) Annual Report on the working of SEBs (2001). Planning Commission, GoI

- &, ) =

= - I

= = 4 = JOJ=

=

-

Table 3.10: Multi-year T&D loss reduction targets

FY 2002-03 % loss level (AERC approved in FY 2002-03) Expected % loss level (proposed by ASEB in FY 2003-04) Approved in tariff orders Actuals 39.07% 37.5% 36.29% 36.5% 39.90% 34.92% 35.67% 32.08% NA 41% 38% 36.5% 35% 29.5% 40% FY 2003-04 38% FY 2004-05 36% FY 2005-06 34.5% FY 2006-07 33%

Source: Tariff orders issued by AERC

- = =

= CE =

0 &

)

$ $ ! *J 6 &9 9 T4 ) -

0

T E R I Report No. 2006RP23

170 Analysis and compilation of tariff orders

Collection Efficiency

) = = 0 CE *J 6 6J = - & ,, CE *J 6 = = = -

CE

Table 3.11: Collection efficiencies for the DISCOMS

DISCOM Collection efficiency FY 2004-05 Actual 91.28% 84.38% 94.77% FY 2005-06 Proposed 95% 95% 95%

LAEDCL CAEDCL UAEDCL

Source: Tariff petition for FY 2005-06

=

CE !

6J

4

#

)

$

= I > 96T 6

= 0

> = 0 = ! N =

CE 6

J 96T = J

"

-

0 4

( = = H 9 ) 0 ) = = =

1 Monthly billing efficiency = Number of consumer billed during the month divided by the number of consumers served by the licensee at the beginning of the month 2 Monthly collection efficiency=Amount realized divided by the amount assessed during the month

T E R I Report No. 2006RP23

171 Analysis and compilation of tariff orders ) I = -

= = = , T = = .- ! = G = 0 =

=

3 3

2

= 4

= - &, -

Table 3.12 Billing efficiencies for the DISCOMS

DISCOM FY 2004-05 LAEDCL CAEDCL UAEDCL 67% 61% 61% Billing efficiency FY 2005-06 FY 2006-07 (upto August 2006) 69% 61% 63% 70% 65% 65%

Source: Presentation on Assam in the APDRP North East Regional Review Meeting, Shillong, 27th October 2006

AT&C losses

= = G ) - & ,& -

Table 3.13 AT&C losses for the DISCOMS

DISCOM LAEDCL CAEDCL UAEDCL FY 2004-05 37% 45% 41% AT&C loss FY 2005-06 30% 42% 38% FY 2006-07 (up to August 2006) 39% 34% 36%

Source: Presentation on Assam in the APDRP North East Regional Review Meeting, Shillong, 27October 2006

Metering

) = CE 0 , T J & G ! 5 CE ,9 - ( 6 =

T E R I Report No. 2006RP23

./

/

*J 6

&9 9 ) = ) 6, ) $ $ !

172 Analysis and compilation of tariff orders = = / $ ; 4 4 = J 4 N ( = 4 3 0F L 4 $ 5)) ,& 0F 6 = ./ = &4 4 <! L J % 0 J = 4 4 4 4* 4 = -J ;CE &J * CE !/ J +<

) CE 0 = 4 ) 2 2 6J

/ $ $ ! /

=

I !/

4 4 ( 4

CE -

6J )

4 ! 4

,, 0F - ! T = ,9+ - & ,* 4 ,6 +

Table 3.14: Status of consumer metering (in lakhs)

Numbers FY 2004-05 FY 2005-06 11.77 12.74 Metered 10.56 12.09 Percentage metered % 90 95

Source: www.powermin.nic.in

Fuel Cost for Power Generation

C CE &J * / ) +*) CE &J * T E R I Report No. 2006RP23

=

173 Analysis and compilation of tariff orders $ C) $ = C CE *J 6 $ )5 D = 4 , $ C 4 = 5 CE ) = = 2 &J * ;. < 2 CE *J 6 = 6 ,& ) ) 4 C ;$ 5C< &J * CE 0 ) + *+ ) 69 66 ) CE 4 = 3 6J ) I

-

*J 6 = 3 3 C CE 6J 6 T

6 T$ 5C . CE

D 3

) I C 3 CE

6J 4 ) " C H ) C N " +& 0) N 0A " ,96 0) N 0A $ . 5 $ . " <" &*+ 0) N 0A <" & 0) N 0A

"

3 $ ;C . 5 $ ;C . 3 $

&

=

< 3 3

CE &J * 3 $ . 5 $ . ) 6 T =

CE ) )

*J 64 6T;

./

= 4

$ )5 D 5 $ . 5 $ . = )

* +T * 6T

CE 6J $ . 9T = 3 $ . 6 6T

CE &J * CE 6J 9 +T T E R I Report No. 2006RP23

174 Analysis and compilation of tariff orders 2 = T &J * CE 6J = ) CE

Power Purchase and own generation cost

= = - & ,6

Table 3.15: Power purchase details

MU (Approved) Rs. Crores 2005-06 557.00 115.00 80.00 649.00 1,096.00 255.00 140.00 8.00 893.80 103.28 3,897.08 104.58 2003-04 20.72 13.60 8.83 81.38 145.12 59.89 46.93 2.03 92.77 73.37 1.17 (11.49) 1.58 535.90 2004-05 32.80 11.66 18.98 82.29 198.34 44.05 33.05 2.03 61.50 99.92 1.63 586.25 2005-06 33.61 10.39 18.57 88.25 197.74 43.46 30.06 2.46 75.13 34.08 96.32 1.60 631.67 -

4 L

Sources

Free Power Khandong & Kopili HEP Loktak HEP Doyang HEP Rangana HEP Assam Gas PP Agartala GT DLF MeSEB APGCL* Trading Purchases PGCIL (NER) Charges PGCIL (ER) Charges Other Charges NRDLC Charges Total Less: Transmission losses CGS/PGCIL Net Power Available Own generation

2003-04* 440.94 130.50 23.85 491.67 716.05 323.30 130.55 12.93 447.67 2,717.46 53.58

2004-05 72.10 469.96 115.18 90.48 737.47 1,110.79 258.84 135.00 7.80 300.00 3,297.62 110.20

2663.87

3187.42

3792.50

535.90 59.27 595.17

586.25 68.48 654.73

631.67 631.67

*Only fuel cost Source: Tariff orders issued by AERC

CE &J * 6&6 9 )

4 CE CE

CE 6J *J 64 ) &J *4 6+ CE

= = 6) 6J 4 4 CE ./ ). . D4 !

C

*J 6

- 0 $ )54 D

CE

T E R I Report No. 2006RP23

175 Analysis and compilation of tariff orders 6J 4 ) < = &, ) ;

Trading and UI

= @ - &, CE 6J

Table 3.16: Details of Trading and UI transaction in FY 2005-06 Details Trading ­ purchase @ Rs 3.30/kWh Trading ­ sale @ Rs 2.58/kWh Net trading UI-purchase UI-sale Net UI Source: Annual Accounts of ASEB MU 262.70 278.93 (16.23) 103.48 0 103.48 Rs Crore 85.70 66.86 18.84 16.26 0 16.26

Employee cost

CE *J 64 = ) 1 6 = & * ./ CE 3 $ ) = 6J ) 6T 0 = = 3 &T = 4 = 4 *J 6 4 = CE = 6J 0A ) &J *4 = ./ = ) / = 4 9+ ) 4 C CE && ) * &T = CE 6J 4 /. J /. - ./ = 6 &9 = +* 9 )

CE

&J * C

4 & 6 +) ./

=

CE

0 &J * CE

CE *J 6 = =

*J 6 C

CE 4

= +T =

%

- &,

T E R I Report No. 2006RP23

176 Analysis and compilation of tariff orders

Table 3.17: Employee costs (proposed, actual and approved)

Rs. Crores Petition EC Petition EC as % of ARR Approved EC Approved EC as % of ARR Actual EC Actual EC as a % of ARR 2003-04 284.90 26.25% 284.90 29.67% 263.24 18.66% 2004-05 330.45 26.71% 298.09 26.75% 322.24 22.84% 2005-06 364.26 23.51% 325.78 29.00% 306.62 21.73%

Source: Tariff orders issued by AERC

Employee Productivity

= CE &J * CE 6J C

&6 & 6 ,6 , 6 T T T T T T T T &J * Petition EC as a % of ARR *J 6 Approv ed EC as % of ARR 6J Actual EC as a % of ARR

=

- ,* &6T = &*

Figure 3.4: Employee productivity Source: Tariff orders issued by AERC

- & ,+

=

=

Table 3.18: Employee cost per unit of sale Year FY 2003-04 FY 2004-05 FY 2005-06 Employee cost per unit of sales (paise/unit) 149.40 136.11 147.88

Source: Tariff orders issued by AERC

- & ,+ CE *J 64 CE 6J 4

T E R I Report No. 2006RP23

177 Analysis and compilation of tariff orders = C ; < ;-< &6 = " 0A /.

20.00 15.00 10.00 5.00 0.00

15.96 8.87

14.68 12.45 7.52 7.20

FY 2003-04

FY 2004-05

FY 2005-06

Number of employees/1000 consumers Number of employees/million kWh sold

Figure 3.5: Trends in employee productivity Source: Tariff orders issued by AERC

- & ,9 *J 6

= CE

= 6J

CE

&J *4 CE

Table 3.19: Revenue per employee Year FY 2003-04 FY 2004-05 FY 2005-06 Number of employees 16910 16471 15871 Revenue Rs Crore 894 944 959 Revenue per employee Rs/employee 528924 573025 604480

Source: Tariff orders issued by AERC

- = = / = = 2 = 4 L

Repair and Maintenance Expenses

= G ( CE &J * CE *J 64 4 , 9* ) 99 ) = , 6&T CE &J * * 9T CE *J 6 ) I G ( = I 2 = 4 ./ ,6 +, ) G ( CE &J *

T E R I Report No. 2006RP23

) ./

178 Analysis and compilation of tariff orders = CE 6J 4 = + &) G ( CE J G ( CE 6J - & = G 3 ( = ) ./ 4 =

Table 3.20: R&M expenses (Proposed, approved and actual)

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 21.94 22.99 28.63 Approved 21.94 22.99 28.63 Actual 15.81 22.99 28.62

Source: Tariff orders issued by AERC

C

& 3

&6 & 6 ,6 , 6 J

&J *

G 3 ( =

;

=

<

,* T , , T T + T T * T T T

1.12% 21.94

1.04% 22.99 28.63

1.29%

*J 6

6J

=

G (

D C

Figure 3.6: Repair & maintenance expenditure as a percentage of gross fixed assets Source: Tariff orders issued by AERC

= D C

G 3 (

./

-

,

T

Administration and General Expenses (A&G expenses)

4 3 &J * = C ) = ) ,T 6J 4 ,) 0 0 6) < 3 J C CE 3 *J 64 D G 3 4 = 3 = 6T = CE 4 4 J & = CE A &J * T 4 6T4 CE ; = 3 C ) CE 6T

CE 6J 4 T 0 CE

) &J *

T E R I Report No. 2006RP23

179 Analysis and compilation of tariff orders = - & , =

Table 3.21: A&G expenses (proposed, approved and actual)

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 10.02 15.68 20.90 Approved 13.03 13.68 14.86 Actual 13.19 15.68 20.03

0 =

% 4 =

) 3 G 3 D

Source: Tariff orders issued by AERC

C

&

=

G 3 D

;

N 0A <

1.40% 1.35% 1.30% 1.25% 1.20% 1.15%

6.83

6.75

7.00 6.80 6.60 6.40 6.20 6.00 5.80

1.36%

6.25 1.23%

1.32%

FY 2003-04

FY 2004-05

FY 2005-06

Approved as a % of ARR

Per unit of sale (paisa/unit)

Figure 3.7: A&G expenses as percentage of ARR and per unit of sale

Source: Tariff orders issued by AERC

G 3 D CE ) 4 6T 4 CE 6J T &J *

CE 4 CE

*J 6 CE &J * *J 6 -

Total Operating expenditure (Employee costs. R&M and A&G expense)

% 4 = =

Table 3.22: Operating expenditure over the years

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 316.86 369.12 413.79 Approved 319.87 334.76 369.27 Actual 292.24 360.91 354.85 per unit of sale 167.73 152.86 167.62 % of ARR 33.31% 30.04% 32.87%

4 3 - & HG 3 ( =

T E R I Report No. 2006RP23

180 Analysis and compilation of tariff orders

Source: Tariff orders issued by AERC

HG 3 ( 2 = =

= ) CE

& J&&T HG ( ,J 4 4 &T HG (

Depreciation

) 3 CE CE ) CE 6J ) I " , F 9 T & = < = JOJ= = ; ) 0 &J * + ,6 ) ) CE *J 6 ,,& 6 ) &J * = && CE *J 6 ) CE *J 6

) 6J = ,,+ ) - & &

= 3 &6 & ) =

CE

=

4

=

Table 3.23: Details of depreciation

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 33.77 113.00 118.00 Approved 7.02 8.15 35.30 Actual

Basis

117.58 113.25 35.3 Linked to repayment portion of loan in the year

Source: Tariff orders issued by AERC

T E R I Report No. 2006RP23

181 Analysis and compilation of tariff orders

Sources of Funds

" 2 "+ 3 = - = = % = * 4 ) +* ) , T C CE = J C 4 &+ = 4 ,* !$ = ,* , = = ) 6 ) 8+ #

=

=

H

!$ P * + 6* ) 6 &) 9* ,, )

90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 -

APDRP funds

Figure 3.8: Circle wise sanction of APDRP funds in Assam Source: www.powermin.nic.in

Jo D rha ib t r G uga uw rh a G hat uw i-I ah I Si ati -I bs ag N ar Bo aga n g on ai ga o C n ac h Te ar zp Ko u kr r M ajha an ga r ld R oi an gi a N Kan .L ak ch hi m pu r

" "9 -% I % ( = # * $ C) - & * = 4 @.[ , % = 0 = I

(

%

B

H

(Rs Crore)

Total disbursement 12.39 005 184.15

-

64

Table 3.24: Status of PFC lending

Utility AEGCL AERC APGCL ASEB (trader) Total Sanction 20.30 0.050 32 219.83

T E R I Report No. 2006RP23

182 Analysis and compilation of tariff orders

272.18 196.58 Source: PowerLine. Volume 11. No 2 October 2006

Interest and Finance Charges

/ CE &J * ++ 9* ) & 9* ) ) = 6 ) - & 6 = 0 = 4 C CE = CE

1

*J 6 6J

&* , ) 4 ) =

6, + ) 6 *) =

4 0

Table 3.25: Details of interest and finance charges has been summarized below:

Interest & Finance charges Interest on Term Loan Interest on Working Capital Interest on Security Deposit Bank charges Others Total C Filed (Rs. Crore) 2003-04 59.10 8.93 23.26 2.64 3.94 97.87 2004-05 39.46 8.18 27.21 3.02 4.25 82.12 2005-06 52.44 18.62 4.80 75.86 5.07 22.98 2.64 3.48 34.17

Approved (Rs. Crore) 2003-04 2004-05 21.87 29.91 3.02 (3.02) 51.78 2005-06 51.06 18.89 4.72 4.80 79.47

E

Source: Tariff orders issued by AERC

CE 6J - 6&T CE

= = ) &J * CE *J 6 0 ,+ 9 )

4 ) CE 6J 0

Provision for Bad and Doubtful Debts

C CE &J * / CE 9 ) ; T *J 64 ) = = *J 64 = < ./ ./ = CE

CE )

1

6J

4 ) $ = -

&6 , ) -

3 * 6) =

excluding interest on working capital

T E R I Report No. 2006RP23

183 Analysis and compilation of tariff orders

6T = = = - & = =

= = =

=

1,T 0

-

= =

4 -

Table 3.26: Bad and doubtful debts (Proposed, approved and actual) (Rs Crore)

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 0.00 22.96 35.71 Approved 0.00 24.65 Actual NA NA 24.2

Source: Annual Accounts of ASEB and Tariff orders issued by AERC

Rate of Return

./ ) = = 4 & *, ) CE *J 64 C CE 6J I CE &J * ./

&T = ) , T - D / CE *J 64 ) I CE 6J I

L

Annual Revenue Requirement (ARR)

C ) / CE J &J * = = +T CE 6J ) = CE C = / ) = C CE , *+ 6 +9* *, ) *J 6 )

, 6 6& ) = 9 , ) ) = *J 6 = CE &J * I 4 --

T E R I Report No. 2006RP23

184 Analysis and compilation of tariff orders

Table 3.27: ARR (proposed and approved) for FY 2003-04, FY 2004-05 and FY 2005-06 (Rs Crore)

Items FY 2003-04 Petition 613.57 284.90 21.94 10.02 97.87 33.77 0.00 23.13 0.00 1085.20 36.95 1048.25 FY 2004-05 Petition 628.91 330.45 22.99 15.68 82.12 113.25 22.96 0.00 20.93 1237.29 31.76 1205.53 FY 2005-06 Petition 681.37 364.26 28.63 20.90 75.86 118.00 35.71 35.72 67.03 1549.11 97.60 1451.51 FY 2003-04 Approved 595.17 284.90 21.94 13.03 34.17 7.02 0.00 0.50 3.41 960.14 65.72 894.42 FY 2004-05 Approved 654.73 298.09 22.99 13.68 51.78 8.15 44.17 20.93 1,114.52 148.41 966.11 FY 2005-06 Approved 680.35 325.78 28.63 14.86 81.56 35.30 24.65 2.09 0 30 1,123.45 162.02 961.43

Power purchase cost + own generation Employee cost Repairs and Maintenance cost Administration and General expenses Interest & Finance charges Depreciation Provision for Doubtful Debts Past Liability/Carry forward losses Return Development surcharge Total Expenditure Less: Miscellaneous receipts Net ARR

Note: The figures for FY 2005-06 include wheeling charges to be paid to AEGCL, but do not include fixed cost of APGCL which are included in other cost parameters to allow comparative analysis over the years. It also includes the subsidy of Rs 49 Crores received as GoA support. The net power purchase and own generation costs would therefore be Rs 631 Crore. Source: Tariff orders issued by AERC

C

&9 CE

= &J *

; CE *J6

-

D <

1600 1400 1200 1000 800 600 400 200 0 2003-04 $ 2004-05 = 2005-06

Figure 3.9 Trends in ARR Source: Tariff orders issued by AERC

C =

&9

-

-

T E R I Report No. 2006RP23

185 Analysis and compilation of tariff orders

Tariff Rate Balancing Tariff Rationalization

./ 6" = D= D H! . 3 3 ) " o < o 5 0 3 ) = ) L = 0 = 3 3 0 4 = 3 0 ; 4 < ./ 4 ; = 3 = -= 2 J ( J = . 0 L CE *J

./ J ) CE 6 T = 3 = 6J

CE

&J *

CE

*J 6 CE *J 6 =

CE

*J 64 ./ = 0

./

6 T . /<

3 ./

;

./ =

) =

./

./

T E R I Report No. 2006RP23

186 Analysis and compilation of tariff orders ( ) 4 ; ) - 6 G ; = , < 4& ) < = 3 (E 3 =

New initiatives in tariff design

, ;5 < ) 2 ;2 < = G 5 ! = # 2 # ! ! 96T = ) ; ./ P J ) @ ./ ! 3 0 H! H! CE J ./ = ) 5 ./ CE J ) I /) CE 0 ! *J 6 2 CE = 4 6J ./ 0 CE 0 = *J 6 0< = = = CE 6J 4 -% ) 45 = =

-)

# 7 2 73 H G

4 @ - ./

4

G

0

) !

3

0 4

T E R I Report No. 2006RP23

187 Analysis and compilation of tariff orders = = ) ! & ) = = = I 0 , ) = = T & ! * CE J 4 5 4 4 I - 4 = I # = & ! 4 CE = 4 C J 5 I 4 4 4 )

=

Category wise average tariff

- & + *J 6 4 CE = 6J = G B L CE

Table 3.28: Category wise average tariff in FY 2004-05 and FY 2005-06

Category Domestic Commercial Industry Tea & Coffee Oil Total Fin support FY 2004-05 Rs/kWh 3.04 5.36 4.26 4.82 6.50 3.96 0.35 4.31 FY 2005-06 Rs/kWh 3.57 5.39 4.19 5.84 5.97 4.38 4.38 Change % 17.37% 0.50% -1.75% 21.25% -8.12% 10.61% 1.62%

Source: Tariff orders issued for FY 2004-05 and FY 2005-06

Cross Subsidy

) T E R I Report No. 2006RP23

L 2 = 4

188 Analysis and compilation of tariff orders = = % L 0 = = = ) + ) CE = 6J = ) CE - & 9 6J CE *J 6 = = 4 -

Table 3.29: The change in cost recovery for some categories from FY 2004-05 to FY 2005-06

Category Domestic Commercial Industry Tea & Coffee Oil FY 2004-05 AR/AC 68.93% 121.47% 96.57% 109.17% 147.34% FY 2005-06 AR/AC 70.63% 106.57% 82.82% 115.55% 118.18%

Source: Tariff orders issued by AERC for FY 2004-05 and FY 2005-06

- = 4

G

= 4 - =

= 4 = ) = ) = CE J -

- =

= G - =

=

= ) . = ) ) = ) = = = 0

T E R I Report No. 2006RP23

189 Analysis and compilation of tariff orders = 4 = )H 4

Convergence Index

C 6 &, CE ) 6J 4 CE = = *J 6 ) CE CE 3 6J ) ) 6J = ) CE T *J 6 CE &J * CE *J

0.225 0.22 0.215 0.21 0.2078 0.205 0.2 FY 04-05 (E) FY 04-05 (A) FY 05-06 (A) 0.2219 0.2170

Figure: 3.10 Trend in convergence index Source: TERI estimation from tariff orders issued by AERC for FY 2004-05 and FY 2005-06

Subsidy Support from Government

D= &J *4 6J 0 ) - D ) ;D < ./ CE *J 6 ,, ) *9 ) % ) CE CE

0 3

Revenue Gap

= 3 I ,6* , ,, 4 2 CE = 4 4 = = = 4 ** , &J *4 ) CE *J 6 CE ) CE = . *J 6 9+ 9 D 4 = = &J * D =

T E R I Report No. 2006RP23

190 Analysis and compilation of tariff orders 4 = 0 = 9 - && C CE

6J

Table 3.30: Revenue gap and tariff adjustment from FY 2003-04 to FY 2005-06

Component ARR (Rs. Crore) Revenue from existing tariff (Rs. Crore) Revenue gap (Rs. Crore) Financial support from GoA (Rs. Crore) Revenue gap to be recovered from tariffs (Rs. Crore) Average cost of supply (Rs./KWh) Average realization (Rs./KWh) Financial support from GoA (Rs./KWh) % Tariff adjustment FY 2003-04 894.41 740.24 154.17 110 44.17 4.67 3.88 0.58 0.00% FY 2004-05 966.11 867.83 98.29 76.00 23.27 4.41 3.96 0.35 2.57% FY 2005-06 961.42 965.02* 49.00 4.36 4.44 3.66%*

Source: Tariff orders of AERC * This was reassessed at Rs 952.42 Crore by the Commission in FY 2006-07 order due to changes in contracted demand for Tea, coffee and rubber consumers and with reassessment the average tariff becomes Rs 4.32/kWh ** This increase is over approved ARR for FY 2004-05

) = / CE 3 ) * 66 *J 6 = CE 2 &J * 969 & ) = 4 4 = +*, ) 4 9 ) CE 6J B = 4 = . /4 CE , ,, ) CE *J 6

&J

Tariff determination for FY 2005-06

. 4 /. ! = 3 ;/. < = = 3 = / 0. CE ) 6J D 3 I -

State Electricity Duty (SED)

. =

Table 3.31: State Electricity Duty SED (Rs Crore) SED per unit of total sales (paisa) SED per unit realised from consumers who pay such duty Source: Annual Accounts of ASEB T E R I Report No. 2006RP23 FY 2003-04 5.32 2.46 2.54 FY 2004-05 14.33 2.43 2.55

16 -

- & &,

(Rs Crore) FY 2005-06 14.33 2.43 2.55

191 Analysis and compilation of tariff orders

Governance Public Participation

CE 4 -% ; ) ) D ( / CE 4 ) 6J P H $ 4 D B ,9 -% -% = 4 N & , 0 -% = - && = B * = L ) 4 ) ) ) C <B 4D 5 $ ; 0 D 1<4 G *J 64 ) CE &J * = CE 4 G 5 4 4 3 -% *J 6 ! )

-% !=

= -%

H B 9

Table 3.32: Break up of consumers who raised objections during the hearings

Domes tic 1 7 Industry and commercial 4 10 Tea Associations 3 2 Total 8 19

FY 2003-04, FY 2003-04 FY 2005-06

Source: Tariff orders issued for FY 2004-05 and FY 2005-06

) = * = CE = 3 6J ./ 0 ,+ ) -

= 6 ./

) 6

CE

6J

1 Indian Tea Association (ITA), Tea Association of India (TAI), Goodricke Group Limited (Goodricke), Gillanders Arbuthnot and Company Limited (Gillanders) submitted a joint objection.

T E R I Report No. 2006RP23

192 Analysis and compilation of tariff orders

Timeliness of Tariff Orders

)4 I ,6 ! ./ & ,6 &, ! 0 CE 3 / & C CE *J 64 = ) I CE * ) ./ = 4 -% ) B ) , ./ , > ) *4 / 4 *J 6 / 3 3 I .// I ,6 ! 3 0 H J & CE 0 ( & ./ I ) CE &J * , > 3 & ) &J * &, ./ )

! )

6 C 6 C 4

*

./ > * )

CE *J 6 CE &J * 4 4 ,** =

H , , ) !

! -

*4 =

*

D= . ./ J , ! ) ) * ./ 4 / H

H ,* !

- 4 -

./ ,9 > -

6 $ $

I $ )5 D

!

-

)

4

T E R I Report No. 2006RP23

193 Analysis and compilation of tariff orders . = D )5 ./ ) ) ! ! / 0. 4 ; . <$ )54 D

) 4 > H $ 4 $ 6 , C 9 > 4 6 . = C 6 $ ,6 C I CE , 6J )

6 H

/ 0. -

(

64

Consumer Advocacy and Redressal mechanism

) ) L ) = ) ) , ) . . = ) H H ) ) ) = = 4 4 ) ;! D = = ) ) ,6 ) ;) ) . ) ) ( < ) ) = " ( > ) ) 0 ) = = C ;) )< = 0 64 ) ) =

-%

= J

= = =

! =

; < ( J)

<

& * 6

) ) )

D R 4

I = -

-

Q )

) <

T E R I Report No. 2006RP23

); B D

-

P

194 Analysis and compilation of tariff orders = ); = H D= CE = ; 0 = - 3 < . = = ) I 6J I 0 = = = 4 ) I 3 2 H = = 4 <

Anti-theft measures

= 0 !. )H( . 2 . ; C I 4 = = . .! = < 4) F = =

H 2 = 4

) 4 = @ !)5

CE 3 G ! !. )H(

J = !. )H( = 0 !. )H( G ! 3 0

@ = @ !)5 !)5 = 0

2

Open Access

) 0 = - 4 J J = = CE J H 6

T E R I Report No. 2006RP23

195 Analysis and compilation of tariff orders

Table 3.33: Cross subsidy surcharge as estimated in tariff order for FY 2006-07 by AERC

Category Amount of cross subsidy Rs crore LT General Supply Public Water Works Bulk Govt Educational Institutions Other Bulk Supply HT Industries-I HT Industries-II Tea, coffee and rubber Oil & coal HT irrigation 9.36 6.94 1.52 11.63 1.72 11.63 45.10 4.81 0.23 Rs/kWh 1.53 1.69 0.63 0.47 0.42 0.40 1.50 0.81 0.12 Cross subsidy surcharge

Source: Tariff Order for FY 2006-07

) 4 =

= - = = =

)

Appeals against orders

4 H 5 *J 6 0 I 0 = = 3 CE 6J G 4 = 0 ) , ) 3 = 3 = 0 )" 3 3 4 3 ) = 3 / ) 3 ) 5 3 3 4 CE )

T E R I Report No. 2006RP23

196 Analysis and compilation of tariff orders = = ) = CE . I ) = 6J

= & * !

= -

3 ( 3 J

I =

Studies undertaken

. , " . . - = 0 I G ! 3 3 = % 0

Staffing

) ) ! <4 H ;! <4 H = ;C < 3 = ! ! ( = 3 I 4 ; 4 ( . "H 4 > <$4 ! ! ; G) = 4 ; < = ;C < . D= ) C = ) ;C <4 ) 0 ) 4 = = ./

=

=

Directives Issued by AERC and their Compliance

) H -% = CE 6J = = - = = L

1

The sanctioned post for a Deputy Director (Finance) is presently vacant

T E R I Report No. 2006RP23

197 Analysis and compilation of tariff orders

Table 3.34: Status of compliance on directives issued by AERC

" 8"1 :D > !G! 5 ) ! 0

J 4

C -

D

+ )

4 -

J

* ,

% -

+* =

$ $ ! J

CE

= $ $ !

4 !0 ) D I J 4>

= $ $ ! 3 -

G ! , - = = T 0 $ $. ! CE J J = > ! / = ) 3 L L . 4 . / > = 6 0 = 4 0 ) ( 4 4 ( ) 96T / - L = 6 96T = = =

-

$ $ !

9

# #

%

./

-

I = > / I 6

/ 0

) ! / I > 0 / 6

> 4

*

# #

%

./

0 -

I = > 6 I > 4

) 0 ) -

) ! ) I = > 6 96T ) !

J

( %" )

+

. ! .- = J = C 0 -

) .

= ) & -

6J 6J -

CE

J

! = = )

)

" 0 ; 9 ( , #

0 36 3 -

/

$ ! &

/ 9 -

)

I

T E R I Report No. 2006RP23

198 Analysis and compilation of tariff orders

" + * % +*

5 = 3 C

36 ) % 0

% ( 8" (

CE

J

=

0 ) -

1

! %

I

0 3

% ! - & 9

" ( 1

6( %# + ( -

#<

) = ! = 9 6 N (! = P P 6

= .- = 0 -

!= 0 = != .- ! =

- = =

=

= ([email protected]

([email protected] ) ) HP ) HPG P 4 != 4P > ) - H ([email protected] ) - = ) J -

) HP ) HPG P 4 = != 4 G= P . ! = 3 = . = -

- ) H ) CE

$ 4

"

( !

1

! 3 0 %

% = -

0

= 5

CE !

= J -

!)54 3 =

$ % ! $

= 3& 3

= Q = R = 4 5 !)5 * 9T CE ) L ) L = = 4 = 7 L / ! (. -

= C ) ! J

9 # ! 8 % / -

! .

(. (. -

!

= L -

2

T E R I Report No. 2006RP23

199 Analysis and compilation of tariff orders

" + * % +*

L %

# =

)() /

! = 4 -

D )5 / D

- ( !4 ( ! ( - 4 3 )

D )54 3 0

=

) H &, ( 4 6 ) 5

Source: Tariff orders issued for FY 2004-05 and FY 2005-06

Power sector rating

( 6 = CE 6J $ 4D 4 CE &J *4 CE *J

Table 3.35: Power sector rating

FY 2003-04 Rank Score 16 27.43 FY 2004-05 17 27.32 FY 2005-06 11 28.46

= 0 " , .=

3

,

,,

CE

6J

J ./ CE ./ 0 ; !/< & CE I * H *J 6 *J 6 4 CE = CE 6J -

-

= ! =

G ! = 4 ,J = = = = ./- D . /P

Regulation issued

" #+ ( , . ) C ( C ( ); < 4 < . * ); 4 ) *

T E R I Report No. 2006RP23

200 Analysis and compilation of tariff orders & C ) 4 + ( + ( , ); ); 4 & * ! 6 ); 6 ) ;$ 6 ) ;$ J. 4 ) ;$ J. 4 ) ;! 4 + ) ;) < ); ) ;! ) ;) * . 4 = ) ) 4 5 4 5 6 4 5 6 5 U . $ < ) < ) < ) < 4 H <

; 6 # # ) ( (

)

H

<

+ * ) < !

=> = % < ? $? & 4 <

9 , ,, , D ,& ); ,* ) ;( ,6 ); , , ); ) ;!

* D ) < 4 * ) < 4 * / < 4 * ) D = H < ) D < 4 * 5 U . $ < 4 * . ) ( < 4 * ( ) < 4 *

Conclusion

, ) . 0 = ) ( 0 0 T E R I Report No. 2006RP23

-

0

-

-

3

201 Analysis and compilation of tariff orders ( $ !/ = CE 6J 4 = ) / = G ) T % 0 = 2 I = 4 = J 3 D G ) = = *J 6 = &6 = = = ; 6J T< &9 T CE &J & &9 9 T CE T4 = 4 . ! = $ @. , [ -

T E R I Report No. 2006RP23

202 Analysis and compilation of tariff orders

C HAPTER 4 Delhi (BRPL, BYPL and NDPL)

Introduction

! S ) D= ,999 ,99+ ,999 ) ) ! = F / ;!F /< , <4 CE ! ) )P < ; & ( ) ; )< , ! L , > , & CE J & ;9 < *J 64 CE 6J CE !

CE J $ )

&J * ;%

= ; = 4 , !F / ) ;! D )H 5 ;! 5< D= = 4 % > = 4 = = 4 $ ! . =

!

4 D= ;D ) !< < 4 4 D 4 <

! ,

!

$

! ! *9T $ 0 5 4 ;/ $ /. . 5<4 5

= D=

H /. . % ;/E$ 5< = D

E D ; !$ 5<

5 0

= ! $

Demand Supply Gap

CE & T4 , 9T , *T CE ! &J *4 CE *J 6 & &T = < = = &J * , T CE 6J = CE 0 6J ;

Movement in Installed capacity

A = ;C $ ; * 6 (A<

T E R I Report No. 2006RP23

4 * ,<

= , (A ;&& (A<4 % ;,&6 (A<4 D ; + (A<

203 Analysis and compilation of tariff orders * J6 (A / ! P 0 ! % D . 4 = ! 4! 5 = N = ! 4 $ P $ ;2 < & (A ,, (A

!

6J& T J 6T ! ! U

4500 3750 3000 M W 2250 1500 750 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Peak Demand Peak Met Installed Capacity

2230 2073 2450 2283 2703 2484 2850 2498 3080 2670 3118 2879 3389 3417 3289 3101 3558 3490 3722 3600

Figure4.1 Delhi's demand-supply gap and own generation capacity

S O U R C E (a) Annual Report Annual Report on the working of State Electricity Boards and Electricity Departments, May 2002, Planning Commission, GoI; (b) Economic Survey of Delhi 2003-04; (c) Website of Delhi Transco Limited

4! ;C

3 * <4 J CE ,99 J9+

-

0

=

CE

6J

;C

* <

T E R I Report No. 2006RP23

204 Analysis and compilation of tariff orders

24000 22000 20000 2.8% 4.9% 3.1% 1.9% 1.4% 1.9% 1.5%

MU 18000

16000 14000 12000 Requirement Availability 2.6% 1.8%

1.9%

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 14060 13694 14952 14676 16500 16184 17635 17141 18575 17667 19350 18741 19946 19567 20440 20160 21157 20952 21602 21281

Figure4.2 Delhi's energy deficit

S O U R C E Website of Central Electricity Authority

Load shedding

- *,

Table 4.1 Load Shedding in Delhi (MU)

Transco Year Under frequency FY 2003-04 FY 2004-05 13.0 12.9 Breakdowns & Constraints 23.4 16.3 Grid Restrict-ions 3.4 1.5 NDPL 53.9 35.9 BSES 135.6 109.2 IPGCL & PPCL 0 0.66 Total 229.3 176.5

!

=

S O U R C E TERI workshop on Delhi Power Reforms: Way Ahead held in August 2005

- *, =

-

Consumption and access Approach for sales/demand estimation

4 J !. )H( ) !. )H( = !. )H( = J = % ) J )

Category-wise sales

! 6 T C 4 J

T E R I Report No. 2006RP23

CE &J * CE

3 J 6J

205 Analysis and compilation of tariff orders = J 6J J 3 ! C CE *& &J *

CE

A griculture 1%

Railway Traction 1%

Others* 1% Dom estic 54%

Industrial 18%

Agriculture 1%

Railway Traction 2%

Others* 1%

Industrial 23% Nondom estic 20%

Domestic 51% Nondomestic 27%

Figure 4.3 Share of consumer categories in the total sales (FY 2003-04 and FY 2005-06)

S O U R C E Tariff orders issued by DERC for various years

= ;& & T< 6J H= , 9*T = - * CE J J CE

;,* ,6T< CE &J * =

6J =

=

CE 4 J ;, & T< = = &J *4 CE *J 6 ! ;6+ , T< = J CE J 6J

(MU)

Table 4.2 Trends in the sales to various consumer categories (Approved)

S. No. 1 2 3 4 5 6

Consumer category Domestic Non-domestic Industrial Agriculture Railway Traction (including DMRC) Others* Total

BRPL 2642 895 1057 79 38 72 4783

FY 2003-04 BYPL NDPL 1567 1452 639 614 536 884 1 25 0 37 2780 52 38 3065

Total 5661 2148 2477 105 90 147 10628

BRPL 2836 1158 662 73 34 173 4936

FY 2004-05 BYPL NDPL 1682 1640 647 716 306 747 1 31 89 0 2725 66 120 3320

Total 6158 2521 1715 105 189 293 10981

BRPL 3131 1726 632 66 110 71 5736

FY 2005-06 BYPL NDPL 1593 1637 936 732 390 1247 0 25 0 35 2954 123 81 3845

Total 6361 3394 2269 91 233 187 12535

* Includes temporary supply, public and street lighting S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

206 Analysis and compilation of tariff orders 4 CE - *&

Table 4.3 Category-wise sales over the years (Proposed, approved and actual)

Consumer category Domestic Non-domestic Industrial Agriculture Railway Traction (including DMRC) Others* Total Petition 5267 2034 2157 78 87 347 9970 2003-04 Order 5661 2148 2477 105 90 147 10628 Actual Petition 5648 6132 2312 2988 1681 1804 99 75.85 93 380 123 252 2004-05 Order Actual 6158 5995 2521 3186 1715 2161 105 86 189 293 10981 167 264 11859 Petition 7040 3183 1831 76 224 280 12633

= CE 6J

(MU)

2005-06 Order Actual 6361 5820 3394 3422 2269 2442 91 57 233 187 12535 200 468 12409

&J *4 CE

*J 64

=

10213 11375

*Includes public / street lighting, temporary supply S O U R C E Tariff orders issued by DERC for various years

- = 4 = =

= -

)

%

Number of consumers and sanctioned load

* 0 CE 6T4 = = 3 J 3 + T

All figures in thousand

FY 2005-06 NDPL Total 674.8 2128.8 138.7 511.1 45.8 85.4 4.3 10.1 0.0 0.0 12.9 2748.2

&J * !

0

! CE

= 6J J J 0

-

Table4.4 Number of consumers over the years (in thousand consumers)

FY 2003-04 BRPL BYPL Domestic 884.1 646.1 Non domestic 70.6 144.0 Industrial 19.3 15.9 Agriculture 13.6 0.2 Railways 0.0 (incl. DMRC1) 0.0 Others Total 0.9 988.5 24.4 830.7 Description NDPL 523.1 95.2 17.7 5.5 0.0 0.0 641.5 Total 2053.4 309.8 52.9 19.3 0.0 25.3 2460.7 BRPL 851.5 141.3 16.1 8.9 0.0 1.2 1019.0 FY 2004-05

BYPL NDPL Total BRPL BYPL 647.5 569.6 2068.7 842.3 611.6 179.4 115.5 436.2 159.3 213.0 24.5 26.6 67.2 16.7 22.9 0.2 5.4 14.5 5.7 0.1 0.0 0.0 0.0 0.0 0.0

0.4 6.9 8.4 5.8 7.1 0.1 852.0 724.0 2595.0 1029.8 854.7 863.7

S O U R C E Data collected from Delhi Electricity Regulatory Commission

- * T = 6 & (A 1

J

= J ;, ,T<

The number of consumer in Railways and DMRC is 1 Nos. This is because railways acts as a bulk consumer for the discoms

T E R I Report No. 2006RP23

207 Analysis and compilation of tariff orders ,*&+(A

Table 4.5 Sanctioned load of consumers over the years (MW)

FY 2003-04 Consumer category Domestic Non domestic Industrial Agriculture* Railways (incl. DMRC) Others Total BRPL 1881 262 135 61 18 575 2932 BYPL 925 251 141 2 0 45 1364 1818 NDPL Total 896 3702 329 842 544 820 23 26 85 45 620 6114 BRPL 1783 507 322 29 17 612 3270 FY 2004-05 BYPL 794 306 231 1 0 191 1523 NDPL 1071 256 671 22 0 14 2034 Total 3648 1069 1224 52 17 817 6826 BRPL 2235 1024 376 21 17 19 3692 FY 2005-06 BYPL 1057 614 279 1 12 28 1991 NDPL 1334 642 903 19 20 16 2934 Total 4626 2280 1558 41 49 63 8617

;9 T< -

; 6T< J - 9 * (A

S O U R C E Data collected from Delhi Electricity Regulatory Commission

Observations

- * =

Table 4.6 Sales and revenue contribution of various consumer categories

Category No. of consumers % of total consumers Nos. (in `000) Domestic Non domestic Industrial Agriculture Railways (incl. DMRC) Others Total 2129 511 85 10 0 13 2748 % 77.5% 18.6% 3.1% 0.4% 0.0% 0.5% 100.0% Consumption* MU 6361 3394 2269 91 233 187 12535 % of total consumption % 50.7% 27.1% 18.1% 0.7% 1.9% 1.5% 100.0% Revenue* Rs. Crore 1986 2078 1221 14 73 103 5476 % of total revenue % 36.3% 37.9% 22.3% 0.3% 1.3% 1.9% 100.0%

= CE 6J

-

*Based on approved figures

- = 4 6T 4 4 = C * 4 ,+T = 6 T 6T H &T T * *4 C

C

*6

T E R I Report No. 2006RP23

208 Analysis and compilation of tariff orders

Railways (incl. DMRC) 0.00% Industrial 3.11% Non domestic 18.60% Agriculture 0.37% Others 0.47%

Domestic 77.46%

Figure 4.4 category-wise numbers of consumers in FY 2005-06

S O U R C E Data collected from Delhi Electricity Regulatory Commission

Agriculture 0.73%

R ailways (incl. D M RC ) 1.86%

O thers 1.49%

D om estic 50.75% Industrial 18.10%

Non dom estic 27.08%

Figure 4.5 Category-wise consumption pattern in FY 2005-06 (approved)

S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

209 Analysis and compilation of tariff orders

Agriculture 0.73%

Railways (incl. DMRC) 1.86%

Others 1.49%

Domestic 50.75% Industrial 18.10%

Non domestic 27.08%

Figure 4.6 Percentage revenue from various consumer categories in FY 2005-06 (approved figures)

S O U R C E Tariff orders issued by DERC for various years

- * = = C - + *T = 4 J - 6 T

=

Table 4.7 Trends in consumption per consumer over the years (approved figures)

FY 2003-04 FY 2004-05 FY 2005-06 Consumpti Consumption on per No of Consumption No of per No of consumers Consumption consumer consumers Consumption per consumer consumers Consumption consumer Units/consu Nos. (in Nos.(in Units/consum Nos.(in ' 000) MU mer ' 000) MU Units/consumer ' 000) MU er 2053 5661 2757 2069 6158 2977 2129 6361 2988 310 53 19 0 25 2461 2148 2477 105 90 147 10628 6933 46845 5432 30000000 5817 4319 436 67 14 0 8 2595 2521 1715 105 189 293 10981 5780 25511 7254 63000000 34781 4232 511 85 10 0 13 2748 3394 2269 91 233 187 12535 6641 26580 9021 58250000 14478 4561

Description

Domestic Non domestic Industrial Agriculture Railways (incl. DMRC) Others Total

S O U R C E Tariff orders issued by DERC for various years and Data obtained from DERC

- *+ = 4 4 A = T E R I Report No. 2006RP23

J

= =

210 Analysis and compilation of tariff orders Table 4.8 Change in sanctioned load per consumer over the years

FY 2003-04 No of consumers Nos. (in ' 000) 2053 310 53 19 0 25 2461 Sanctioned load MW 3702 842 820 85 45 620 6114 Sanctioned load per consumer KW 1.80 2.72 15.51 4.41 14926.67 24.52 2.48 FY 2004-05 FY 2005-06 Sanctioned Sanctioned No of Sanctioned load per No of Sanctioned load per consumer consumers consumer consumers load load Nos. (in ' 000) MW kW Nos. (in ' 000) MW kW 2069 3648 1.76 2129 4626 2.17 436 1069 2.45 511 2280 4.46 67 1224 18.20 85 1558 18.25 14 52 3.58 10 41 4.06 0 8 2595 17 817 6826 5666.67 96.94 2.63 0 13 2748 49 63 8617 12250.00 4.88 3.14

L

Description Domestic Non domestic Industrial Agriculture Railways (incl. DMRC) Others Total

S O U R C E Tariff orders issued by DERC for various years and Data obtained from DERC

Status of electrification

- *9 ,* 6T

Table 4.9 Status of household electrification

Total number of rural households 169528 Households having electricity 144948 % Electrified households Unelectrified households 24580 % Unelectrified households 14.5

-

85.5

S OU R C E www.powermin.nic.in accessed during May-July 2006

Status of APDRP Schemes

- *,

Table 4.10 Status of APDRP Schemes

Project outlay 922.61 No. Of projects 6 Revised APDRP component (Rs. Crore) Grant Loan Total 230.65 52.76 283.41 Releases up to March 2006 (Rs. Crore) 105.51 Utilisation Up to March 06 863.23 % 93.56

$ $ !

!

S O U R C E http://www.apdrp.com/apdrp/projects/about_apdrp.htm, accessed during November 2006

Status of PFC lending

- * ,, ! $ C)

T E R I Report No. 2006RP23

211 Analysis and compilation of tariff orders

Table4.11 Status of PFC lending in Delhi

Description DERC Delhi Vidyut Board New Delhi Municipal Council North Delhi Power Limited Pragati Power Corporation S O U R C E Power Line, Volume 11, No. 2, October 2006 Total sanctions Rs. Crore 0.14 1.59 0.04 80.27 700 Total disbursement Rs. Crore 0.12 0.76 40.00 670.53

Efficiency Improvement AT&C losses

Approach for fixing the targets

= D ) ! = % ; G ) = = = ; < -

= = < D=

1

-

= D= D= 6 "6 = - *, ! )4 ; = G ) 4 4

-

G )

G ) = < D=

= -

Table 4.12 Accepted loss levels vis-à-vis the Government stipulated loss levels

Description BRPL Accepted bid (Negotiated level) Minimum level (Govt. stipulated) BYPL Accepted bid (Negotiated level) Minimum level (Govt. stipulated) NDPL Accepted bid (Negotiated level) Minimum level (Govt. stipulated) S O U R C E Tariff orders issued by DERC for various years

1 This is because the negotiated/accepted loss levels were lower than the loss levels specified by the Government

(%)

FY 2005-06 6.00 4.50 5.65 5.00 5.5 4.25 FY 2006-07 5.60 4.00 5.10 4.25 4.25 4.00

Opening level 48.1

FY 2002-03 0.55 1.25

FY 2003-04 1.55 5.00 1.75 5.00 2.25 5.00

FY 2004-05 3.30 4.50 4.00 5.00 4.5 4.50

57.2 0.75 1.50 48.1 0.5 1.50

T E R I Report No. 2006RP23

212 Analysis and compilation of tariff orders

D= = - * ,& -

Table4.13: Cumulative reduction over the reform period (July 2002 to March 2007) (%)

Discom BRPL BYPL NDPL Government stipulated reduction targets 17.00 17.25 17.00 Accepted (negotiated) targets 19.25 20.75 19.25

S O U R C E Tariff orders for various years

!

) =

% =

=

Performance vis-à-vis the targets

- * ,* = = =

Table4.14 AT&C loss achieved by the discoms vis-à-vis the targets

Description 03-04 AT&C loss target AT&C loss level achieved Overachievement (underachievement) S O U R C E Tariff orders issued by DERC for various years 46.00 45.06 0.94 BRPL 04-05 42.70 40.64 2.06 05-06 36.70 35.53 1.17 03-04 54.70 54.30 0.40 BYPL 04-05 50.70 50.13 0.57 05-06 45.05 43.89 1.16 03-04 45.35 44.87 0.48 NDPL 04-05 40.85 33.79 7.06 05-06 35.35 26.52 8.83

G ) 4

=

=

-

3 =

= = 6 T

= CE 6J

*+ ,T

!$ 5

Table 4.15 Target reduction vis-à-vis the reduction achieved from July 2002 to March 2006

Target reduction from privatisation to FY Achieved reduction from privatisation to FY 2005-06 2005-06 BRPL BYPL NDPL 11.4% 12.15% 12.75% 12.60% 13.30% 21.60%

S O U R C E Tariff orders issued by DERC for various years

/ !

CE -

- = 4 6J 0 = ,+ T

= - &6 4

G ) T ! 6& 9T

T E R I Report No. 2006RP23

213 Analysis and compilation of tariff orders

Benefit sharing for reduction of losses

= = ; < = = = = ; = = - = ; 4 3 4 - = 64 !$ 5 = & 6) CE 6J 4 = *J CE - / $ /E$ 54 5 , ,+) - = CE &6 ) ,& 6 ) CE - / $ /E$ 54 5 J 4 !$ 5 = = , 6 ) = = < = ; = = < = G ) = G ) D= / G ) < 3 G ) = / = G ) = D ) ! =

G ) D= 6 T 6 T -

G ) 4

,)

4 4

, &) !$ 5

*J 6

Anti-theft measures1

@ ) L ) = ; . 4 < ! C D= ;) . C<4 J

1

http://www.thehindubusinessline.com/2006/08/02/stories/2006080202672100.htm accessed in November 2006

T E R I Report No. 2006RP23

214 Analysis and compilation of tariff orders 3 0 ). = C 4 - /. .E 3 D= 3 ). C - = 4. ;/E$ 5 < <4 F0 ;/ $ 5 ) = < $ L 3 5 ) - , T 0 = -

( =

$ ;/ $ 5

%

Status of metering

- *, 2 = 4

Table 4.16 Status of metering in Delhi

Description Nos. 11 kV feeders Distribution transformers Consumers (in lakhs) 1850 8000 26.65 FY 2005-06 Metered 1850 3500 26.65 % Metered 100 44 100

! = ! ,, 0F = **T

) =

S O U R C E www.apdrp.com accessed on 27th November 2006

DT failure rate

- *, ! = = = = !F / 0

Table 4.17 Rate of distribution transformer failure

FY 1998-99 19.45% FY 1999-00 16.95% FY 2000-01 18.29% FY 2001-02 14.57% FY 2003-04 3.86% FY 2004-05 1.26%

S O U R C E TERI workshop on Delhi Power Reforms: Way Ahead held in August 2005

I . ( = , 4 =

! 0 ! -

4!

) 4

Power purchase by Transco

- * ,+ = * ,+ 6

T E R I Report No. 2006RP23

= = = < J CE *J

= ;

215 Analysis and compilation of tariff orders

Table 4.18 Cost of Power purchase over the years (Proposed Vs Approved)

Units Purchased Description FY 2003-04 Proposed Approved FY 2004-05 Proposed Approved FY 2005-06 Proposed Approved MU 21209 21110 22698 20679 22727 21430 Cost Rs. Crore 4649 4378 5301 4504 5312 4320 Price Rs./kWh 2.19 2.07 2.34 2.16 2.34 2.07

S O U R C E Tariff orders issued by DERC for various years

. )

J

=

0

= - * ,9

-

Table 4.19 Power purchase cost of Transco (approved figures) over the years

FY 2003-04 Source Central Generating Stations1 NJPC PTC and Other States HPSEB BTPS2 Genco3 PPCL4 Sub total Sale to other States Underdrawls Total Power Purchase Units MU 11466 22052 4695 2264 1938 22414 1005 -300 21110 Cost Rs. Crore 2178 488 1088 444 428 4626 206 -42 4378 Price Rs/kWh 1.90 2.38 2.32 1.96 2.21 2.06 2.05 1.40 2.07 Units MU 12308 1381 4566 2369 2134 22757 -1344 -295 20679 FY 2004-05 Cost Price Rs. Crore Rs/kWh 2446 1.99 380 2.75 1078 2.36 514 2.17 472 2.21 4888 2.15 -288 2.15 -95 4504 3.18 2.16 Cost MU 10383 1323 64 1383 4740 2993 2328 23214 -1784 21430 FY 2005-06 Total Price Rs. Crore 1937 299 23 404 1077 664 483 4886 566 4320 Price Rs/kWh 1.87 2.26 3.61 2.92 2.27 2.22 2.06 2.10 3.17 2.07

SO U R C E Tariff orders issued by DERC for various years

- * ,9 $ H 7 $)

Plant Load Factor of Gencos

$ 5C ! = = P L = ; = - * <

Includes NTPC, NHPC and NPC Badarpur Thermal Power Station 3 State Generating Stations viz. Indraprashtha Power Station, Rajghat Power Station, Indraprashtha Gas Turbine Station 4 Pragati Power Corporation Limited

1 2

T E R I Report No. 2006RP23

216 Analysis and compilation of tariff orders = = = 4 , = L (A ! 4 4 * $ 5C J6 (A

Table 4.20 Plant Load Factor of Delhi's Power Stations

Year 199900 39.0% 79.4% 32.0% 44.5% 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

I.P. 39.9% 37.5% 28.6% 35.4% 36.9% 45.42% R.P.H 66.8% 59.7% 71.7% 65.2% 66.0% 48.5%1 G.T. 49.1% 47.2% 49.1% 49.0% 62.32% 70.46% P.P.S 65.4% 83.0% 88.27% Overall 49.27% 45.1% 43.6% 47.2% 56.81% PLF All India 67.3% 69.0% 70.0% 72.1% 72.7% 74.8% 73.6% S O U R C E : Economic Survey of Delhi 2003-04; Annual Report Annual Report on the working of State Electricity Boards and Electricity Departments, May 2002, Planning Commission, GoI; Annual Report 2004-05, Ministry of Power, GoI; website of Indraprastha Power Generation Co. Limited http://ipgcl-ppcl.com

Bulk Supply Tariff to Discoms

CE J 4 - D ) ! = = = 4 ! 4I I = = = , T 4 3 = ! 4 4 ! ! C = C 0 4 = = , T , T 4 0 G ) G ) , T - = 4 /. ! /. = ( = 4

=

1

Delhi Power Profile (As in June 2006), www.infraline.com

T E R I Report No. 2006RP23

217 Analysis and compilation of tariff orders = . 3 @ = I I G ) - = = 4 = = = I D= &*6 ) = 3 4 ; 4 4 I = - = 0 3 /. 40 = - = = &6J* T = 4 ) - * , 3 J = = /. 4 3 4 4 /. , T 3 < = = J - 0 = 4 I . 04 D= = . = V . 3 @ = . / = 3 . 0 ; .< = ;,J /. G) G ) 4 <4

-

= = /.

P

- 0 =

- !

Table 4.21 Bulk supply tariffs to the discoms over the years

Description FY 2003-04 ARR excl. power purchase cost (Rs. Crore) Revenue at existing tariff (Rs. Crore) Electricity Duty (Rs. Crore) Amount Available for power purchase (Rs. Crore) Units Input (MU) Bulk Supply Tariff (Paise/kWh) FY 2004-05 ARR excl. power purchase cost (Rs. Crore) BRPL 391 1745 80 1275 7966 160.06 BYPL 213 926 48 665 5280 125.95 NDPL 329 1248 61 859 5451 157.59

390

250

358

T E R I Report No. 2006RP23

218 Analysis and compilation of tariff orders

Description Revenue gap of FY 2003-04 (Truing up) Revenue at proposed tariffs (Rs. Crore) Regulatory Asset (Rs. Crore) Electricity Duty (Rs. Crore) Amount Available for power purchase (Rs. Crore) Units Input (MU) Bulk Supply Tariff (Paise/kWh) FY 2005-06 ARR excl. power purchase cost (Rs. Crore) Revenue at proposed tariffs (Rs. Crore) Electricity Duty (Rs. Crore) Amount Available for power purchase (Rs. Crore) Units Input (MU) Bulk Supply Tariff (Paise/kWh) BRPL 48 1964 267 87 1743 8391 207.72 BYPL 29 1038 138 47 830 5307 156.40 NDPL 10 1400 192 64 1141 5392 211.61

468 2469 98 1903 8609 221.05

308 1263 51 904 5106 177.05

415 1677 69 1194 5655 211.14

S O U R C E Tariff orders issued by DERC for various years

$

-

3

&T

Operating expenses

Employee cost

C = 0 CE &J *4 ) ) % . ! = ! 6 N J F / * T H T E R I Report No. 2006RP23

) -

L

% CE ) &J * = = J & CE = J &4 ! "J

7

&T = 7 ! = L ;!F /< 7) T 4 4 7$ % CE 9T

. !

CE

&J

! 4

CE J & % = - CE &J * 4 4 N3 J

219 Analysis and compilation of tariff orders J & - = 4 1, T CE / ! ! ! *J 64 . ") &T I = ,,T / CE *J 6 / ) "J ( / "H 6 T / . = = J T ") 0 H 4 3 CE . ) 3 = ) 4 4 3 ) ,&, ) 3 , ) G 3 D ) + 2 = 4 4 . . F 4 &6 !F / C ! - 0 < 4 ; G 3 D = / $ /E$ 54 5 ; = 0 0 = *J 64 &,+ ) / L , 3 J& = CE "H *J 6 . F. L L . .3 F = F 4 . . F = 4 / / ! / . 4 N3 J 4 4 ! 1 69T / / 4 ! ) ;/ $ 5 /E$ 5< 9T, T !$ 5 3 CE

L

H

3 3 = 4 4 3

4-

!$ 5<

-

,,6

=

T E R I Report No. 2006RP23

220 Analysis and compilation of tariff orders ! F .. . . NF ) = = 3 = = - = J* 3 0 -% ! CE 6J 4 ) . . F ! T - * = 4 CE = = = &J * 3 ) = C 3 4 3 = = CE 6J = I = H F. . 3 - = ) = 4 % F. . G 3 D 3 ) = 0 4 3 J* 3 = 4 = % 0 F. ) ) F. . F. . 4 ) . . F 9 *6 F .. . . NF ! . -

=

Table 4.22 Employee cost (Proposed, Approved and Actual) over the years

Year FY 2003-04 BRPL BYPL NDPL Total FY 2004-05 BRPL BYPL Petition Rs. Crore 143.0 114.0 128.2 385.2 168.1 140.3 Order Rs. Crore 137.9 113.3 106.0 357.3 139.4 118.7 Actual Rs. Crore 132.4 111.8 103.0 347.2 178.3 141.3

T E R I Report No. 2006RP23

221 Analysis and compilation of tariff orders

Year NDPL Total FY 2005-06 BRPL BYPL NDPL Total Petition Rs. Crore 125.7 434.2 188.0 155.4 140.0 483.4 Order Rs. Crore 119.4 377.5 150.5 131.4 126.9 408.8 Actual Rs. Crore 129.8 449.4 167.5 133.4 143.6 444.5

S O U R C E Tariff orders issued by DERC for various years

CE = = = = =

*J 64 / $ 5 3 "J

/E$ 5

=

G ) !F /

A "J @ ) $ 0 4J =

4

!$ 5 = \ \ ( !F / = 4 4 3 4 3 % /

= C * 4 = =

5

T E R I Report No. 2006RP23

222 Analysis and compilation of tariff orders

600.0 500.0 400.0 300.0 200.0 100.0 0.0 FY 2003-04 Petition FY 2004-05 Order Actual FY 2005-06

Figure 4.7 Total employee cost (Proposed, approved and actual) over the years

S O U R C E Tariff orders issued by DERC for various years

- * & = = + &T CE ,, &T

-

0J ) ) 6J =

= 6 T CE

*J 6 , T

Table4.23 Break-up of employee cost approved by the Commission for all the discoms over the last three years

Components Salaries Dearness Allowance Terminal Benefits Other Costs Total Employee Expenses Less: Expenses Capitalized Net Employee Expenses BRPL 73.2 27.6 33.9 18.6 153.2 15.3 137.9 FY 2003-04 BYPL NDPL 60.0 40.3 23.2 21.7 28.0 18.2 14.6 37.6 125.9 117.8 12.6 113.3 11.8 106.0 Total 173.5 72.5 80.1 70.8 397.0 39.7 357.3 BRPL 77.4 8.5 14.1 54.8 154.9 15.5 139.4 FY 2004-05 BYPL NDPL 64.8 59.7 7.1 7.2 11.8 12.0 48.3 54.5 131.9 133.4 13.2 118.7 13.3 119.4 Total 201.9 22.8 37.9 157.6 420.2 42.0 377.5 BRPL 79.8 11.5 14.6 56.5 162.3 11.8 150.5 FY 2005-06 BYPL NDPL 66.7 61.5 9.6 8.9 12.1 12.6 49.7 56.2 138.1 139.1 6.7 131.4 12.2 126.9 Total 208.0 30.0 39.3 162.3 439.5 30.7 408.8

S O U R C E Tariff orders issued by DERC for various years

Employee productivity

- * * = = !

Table 4.24 Trends in indicators of employee productivity

Year FY 2003-04 FY 2004-05 FY 2005-06 Employee cost as a% of ARR % 9.59% 9.61% 8.09% Employee cost per unit of No of employees per thousand sale consumers Rs./kWh Nos. per thousand 0.336 6.68 0.344 5.47 0.326 5.63 Revenue per employee Rs. Crore. 0.23 0.31 0.35

S O U R C E TERI estimates

T E R I Report No. 2006RP23

223 Analysis and compilation of tariff orders ; = = 4 - ! = =L = = C = *+ C - = *9 = 4

)<

= = H

0.400 0.350 0.300 0.250 0.200 0.150 0.100 0.050 0.000 FY 2003-04 Employee cost/sale (Rs./kWh) Employees per thousand consumers FY 2004-05 FY 2005-06 Revenue per employee (rs. Cr)

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

Figure 4.8 Trends in employee productivity

S OU R C E T E R I estimates

450.0 9.61% 9.59% 400.0 Rs. Cr 377.5 357.3 350.0 408.8

10.00% 9.50% 9.00% 8.50% 8.09% 8.00% 7.50% %

300.0 FY 2003-04 FY 2004-05 FY 2005-06

7.00%

Total Employee Cost

Employee cost as a% of ARR

Figure 4.9 Trends in employee productivity

S O U R C E TERI estimates

T E R I Report No. 2006RP23

224 Analysis and compilation of tariff orders

Repair and Maintenance expenses (R&M Expenses)

C G 3 ( 4 )

4 = G 3 ( - * 6 = G 3 (

) 3 -

G 3 ( < = = 3

; =

4 = 4

Table 4.25 R&M expenses (Proposed, approved and actual) over the years

BRPL Petition Order Actual 72.10 52.57 60.43 FY 2003-04 BYPL NDPL 54.30 31.31 34.79 42.22 32.16 55.26 Total 168.62 116.04 150.48 BRPL 62.88 52.57 92.00 FY 2004-05 BYPL NDPL 41.14 31.31 64.58 63.86 32.16 57.71 Total 167.88 116.04 214.29 BRPL 74.51 71.75 73.60 FY 2005-06 BYPL NDPL 49.89 48.04 51.89 55.61 55.83 55.09 Total 180.01 175.62 180.58

S O U R C E Tariff orders issued by DERC for various years

CE

*J 64 G (

) 0 4 G A 0 ( I G (

)

I

-

- =

4 4 3

) 3 0 CE C = *J 6 N 4

= 3 C *,

G 3 ( G 3 (

= < C ,T &T =

G 3 ( 3

; !

=

CE

&J *

=

T E R I Report No. 2006RP23

225 Analysis and compilation of tariff orders

200 180 160 140 120 100 80 60 40 20 0 F Y 2003-04 FY 2004-05 116.0 116.0 3.68% 3.29%

4.09%

5.00% 4.00%

175.6 3.00% 2.00% 1.00% 0.00% FY 2005-06 As a % of Gross fixed assets

R &M expenses (approved) - R s. C r

Figure 4.10 R&M expenses as a percentage of gross fixed assets

S O U R C E TERI estimates

Administration and General Expenses

C G 3 D 4 )

CE = 2 CE CE 6T = 4

&J *4

) G 3 D 4 =

% +T =

= J & *J 64 = ) 4 G 3 D 0 I = * . . G 3 F 4 D 4 = = CE C 4 0 )

- *T

=

&J

CE = 2 "J

*J 64 G 3 D

=

3 3 ()! 3 = 3 -

3

T E R I Report No. 2006RP23

226 Analysis and compilation of tariff orders J ) = CE 6J "J 3 3 = 3 J % = -

) = D , T; !$ 5< CE 6J 4 G 3 D / $ 5 /E$ 5 *J 6 *T N = - * = = G 3 D 4 3

= ,6T

3 ;/ $ 5 /E$ 5<

) ) CE % 0 = G 3 D *J 6,

*T !$ C 5 CE = ) -

4

G 3 D = - = 3 -

4 C = 3

=

-

C =

4

Table4.26 A&G expenses (Proposed, approved and actual) over the years (in Rs. Crore)

BRPL 26.0 15.2 32.2 FY 2003-04 BYPL NDPL 20.5 23.9 10.8 18.3 21.2 18.9 Total 70.5 44.3 72.4 BRPL 39.6 8.0 41.1 FY 2004-05 BYPL NDPL Total 23.0 23.7 86.2 12.1 18.9 39.1 26.6 19.2 86.9 FY 2005-06 BRPL BYPL NDPL Total 37.3 24.5 21.5 83.3 30.2 17.3 20.0 67.5 61.2 33.4 22.3 116.9

Petition Order Actual

S O U R C E T A R I F F orders issued by DERC for various years

1

Here too the petitioner provided several reasons for high level of A&G expenses.

T E R I Report No. 2006RP23

227 Analysis and compilation of tariff orders C 3 C = C T * ,, / = G 3 D

6.00 5.00 4.00 3.00 2.00 1.00 0.00 FY 2003-04 FY 2004-05 FY 2005-06 A&G expenses as a % of ARR 0.00% 4.2 3.6 1.19% 0.99% 5.4 1.00% 1.34% 2.00%

4

= 3

= 3 -

G 3 D =

A&G expenses per unit of sale

Figure 4.11 A&G expenses as a percentage of ARR over the years (approved) * Based on approved figures

S O U R C E TERI estimates

Total operating expenses

4 G (

Table 4.27 Total operating expenses over the years

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed Rs. Crore 624.23 688.29 746.72 Approved Rs. Crore 517.62 532.61 651.83 Actual Rs. Crore 570.06 750.53 741.95 Per unit of sale* Paise/unit 48.7 48.5 52.0 As a % of ARR % 13.90% 13.56% 12.91%

3 G 3 D =

*Based on approved figures

S O U R C E Tariff orders issued by DERC for various years

-

=

HG 3 ( = 9T 3 &T CE ; = < A = 3 *J 6 H ; = < CE 6J - & &T 3 4

= ,* T =

T E R I Report No. 2006RP23

228 Analysis and compilation of tariff orders G 3 D H 3 = T = 4 = 4 ; < G (

Depreciation

CE &J *4 9T ) ( = ) ;C CE < 4 & 6T ,99* 0 9 T 4 3 3 = 4 = ( $ 6 =

*J 64 + , T;/ $ 5<4 2 = 4 ) & 6T &J *

T;/E$ 5< = 0 -

&6T; !$ 5< CE

Q

) & 6T C 4 % -

= = = 9 = = = 6 J 4 3 - 4 )A $ 4 ) & 6T

) 3 $ 3 P -

0

4

) & 6T

) CE 4

T E R I Report No. 2006RP23

3 &J *4 $ I

229 Analysis and compilation of tariff orders - = CE ; = ) 0 ; I ( $ 3 4 "J $ * ( ) A && T =L 3 6J 4 ) < 3 4 * ) )

1

4 4

) =

4 $ -

! P ,99*

<

-

Q 3 . . 4 4D= 4 = ) 2 = ) ( K ;F < A = $ .3 . % R ) 4 % 4 ; < 3 4 I 4 F = + 4 $ = A . 4 4 ( 4 4 ) ) ;. < 4 ,9*+ ;&<

1 Since there was no loan repayment liability envisaged by the Petitioners for FY 2003-04 and FY 2004-05, the Commission considered utilization of depreciation for meeting the working capital requirement and funding capital investments in line with the priority of utilization viz. loan repayment (if any), working capital requirement, capital investment.

T E R I Report No. 2006RP23

230 Analysis and compilation of tariff orders

Q 4 C

=

3 ) 3 -% ) . 4 4 ) = % 4

4 4

4 = 04

$ . ) ( = ;. < 4 = $ ) -

=

4

$ F 4 ,9*+ R

.

Q C 4 3 4

4 !. )H(. = = 0 = 3 R 4 3

) =

!. )H( 4 ) -

Q H H H K 3 4 4 -

4 A ) ) N . ! )H( 3 - = R 4

$ 1 1& T 9T 4

= ) ) 4 I !. )H( N ) 0 4 ;C ) < = $ , > , > & 0N I C3 3 C3 -

T E R I Report No. 2006RP23

231 Analysis and compilation of tariff orders C = L CE *J 6 ) ) 0 4 0 = , > = J , > CE 4 = 4 J &4 CE = &J *

) H $ =

= ) = = N )A $ = $ 4 $ C

= = C = -

) ( . . ) . = = 4 ) 0 0 4 * ( - 0 > .

1

4 ) )

) )= H 4 0 ) ) ;F < . A 3 3 . % & &&

-

;F < = =

= = -

-

)

-

1

As per discussions with the officials of DERC

T E R I Report No. 2006RP23

232 Analysis and compilation of tariff orders 4 CE J Q J CE J = = 3 ) = - * + = = 3 =

Table4.28 Depreciation (Proposed Vs Approved) for discoms over the years

Description Petition Order Actual BRPL 133.9 58.2 114.8 FY 2003-04 BYPL NDPL 49.9 106.2 14.4 45.6 32.0 87.5 Total 290.1 118.2 234.3 BRPL 155.4 62.2 126.4 FY 2004-05 BYPL NDPL 50.8 113.8 17.3 53.0 43.5 112.8 Total 320.0 132.5 282.8 BRPL 138.8 73.2 87.5 FY 2005-06 BYPL NDPL 64.0 102.1 32.2 60.8 36.6 64.8 Total 305.0 166.2 188.8

) *6 ) 4 = R CE

4

) = 9 T 3 7 ) $ ) < * 0

;

) = -

S O U R C E Tariff orders issued by DERC for various years

- * 9 = )

L = = -

-

=

-

)

Table4.29 Depreciation rates (Proposed Vs Approved)

Year FY 2003-04 FY 2004-05 FY 2005-06 Depreciation rate (%) Proposed* 6.69 7.35 to 8.17 5.79 to 8.77 Approved 3.75 3.75 3.32 MoP Notification, 1994 MoP Notification, 1994 CERC (Terms and conditions of tariff) Regulations, 2004 * Calculated based on the depreciation and opening value of GFA proposed by the petitioners S O U R C E Tariff orders issued by DERC for various years and TERI estimates Basis for approved rates

Sources of funds

4

T E R I Report No. 2006RP23

=

=

233 Analysis and compilation of tariff orders 3 4 3 4 $ $ ! 4 4

&J *4 / $ /E$ 54 5 6 ) 4 9 9 ) = = = * 9 ** ) 4 + &6 )

CE &

!$ 5 & , ,* ) = ) + &* ) $ $ ! A

L ) ) 3 CE ( &J * $ $ ! ) ) @ $ $ ! / CE *J 6 CE = -

-

D CE ) ! D=

= D ) !4 &J * @ ! = 3

D 4D &

-

= = = = = 6J CE = - = = ) 4 ) &J * I 3 I "& "J

=

1600 1400 1200 1000 Rs. Cr 800 600 400 200 0 BRPL BYPL NDPL

C

*,

FY 04 (P) 363 298 301

FY 04 (A) 409 287 278

FY 05 (P) 1177 1565 307

FY 05 (A) 546 568 319

FY 06 (P) 1400 1200 374

FY 06 (A) 647 583 380

Figure4.12: Sources of funds for the discoms over the years

S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

234 Analysis and compilation of tariff orders

=

=

4

3

=

/ $ 5 = CE 6J

/E$ ! 5

!$ I 5 - 0J CE &J *4 CE - *&

J *J 6

(Rs. Crore)

Table 4.30 Break-up of sources of funds over the years (approved)

Description Consumer Contribution APDRP Grant APDRP Loan Internal Accruals Commercial Debts Depreciation Total Funds BRPL 17 75 75 54 158 29 409 FY 2003-04 BYPL NDPL 1067 22 65 62 65 62 22 31 123 72 28 287 278 Total 1106 203 203 108 354 58 975 BRPL 57 63 63 95 221 48 546 FY 2004-05 BYPL NDPL 14 22 55 62 55 62 37 42 408 97 0 33 568 319 Total 93 180 180 173 726 82 1433 BRPL 57 0 0 155 362 73 647

FY 2005-06 BYPL NDPL Total 20 20 97 0 0 0 0 0 0 31 100 285 500 232 1094 32 29 134 583 380 1610

S O U R C E Tariff orders issued by DERC for various years

Capital expenditure

CE &J *4 , * ) ) , 6 ) = = ) = I = ) = 6 = 9 9) 3 L ; = 0 = = ,& ) ! = ;/ $ 5 /E$ 5<" 5 0 J = !F / ! ! 2F % < 0 0 3 CE = *J 64 CE *J

1

= 4 4 )

3 L 0

J

3 J = -

%

0F

1 In each of the year, the Commission has been considering the cost of new meters, transformers and switchgears replaced against defective components as part of capital expenditure and not in the R&M expenditure proposed by the petitioners. The Commission has also considered a part of survey fees /consultancy charges as part of capital expenditure and not as part of A&G expenses.

T E R I Report No. 2006RP23

235 Analysis and compilation of tariff orders ) !$ = . . . ) = P ) = ) - ) . -J ! 4 ) ) = 4 . = ) ) JJ 4 = -

CE 3 -

6J

4

) CE 0 *J 6

0 CE )

= L 6J

= ) 3 3 = = = ) ) I CE =

3 0 !$ ) ) 6J ) -

JCE J *J 6 J

4

) -

= ) =

Table 4.31 Capital expenditure by the discoms over the years

FY 2003-04 Utility BRPL BYPL NDPL Total Petition 363 386 301 1050 Order 423 336 287 1046 Actual 112 85 287 484 Petition 1149 1539 290 2979 FY 2004-05 Order 526 548 303 1377 Actual 923 418 328 1669 Petition 1400 1165 361 2926 FY 2005-06 Order 477 426 361 1264 Actual 496 348 382 1225

S O U R C E Tariff order issued by DERC for various years

- = 4 = = 3 =

T E R I Report No. 2006RP23

= ) = = - *& =

236 Analysis and compilation of tariff orders

Table 4.32 Actual capital expenditure as a percentage of approved and proposed amounts

FY 2003-04 Utility BRPL BYPL NDPL Total FY 2004-05 FY 2005-06 Actual capex as a Actual capex as a % Actual capex as a % of Actual capex as a % of Actual capex as a Actual capex as a % % of approved of proposed approved proposed % of approved of proposed 26.5% 30.9% 175.5% 80.3% 103.9% 35.4% 25.3% 22.0% 76.3% 27.2% 81.7% 29.9% 99.9% 95.3% 108.1% 113.0% 105.7% 105.7% 46.3% 46.1% 121.2% 56.0% 96.9% 41.9%

S O U R C E TERI estimates

= = 3 = = = = ) CE I 3

- = = =

=

!$ 5P 4/ $ 5 /E$ 5 0 - 0 0 I

=

*J 6 ; 3 /E$ 5< 0 C = 4 - = 4 I =

Interest Charges

CE , T 64 ) $ $ ! = C = - * && = ) 4 ) &J *4 $ $ ! ) ,,T = 9T < CE + 6T 6J 4 J ) = CE ,, 6T ; *J

Table 4.33 Interest charges on loans over the years (Proposed, approved and actual)

Year FY 2003-04 BRPL BYPL NDPL Total FY 2004-05 BRPL Proposed Rs. Crore 29.6 31.9 22.5 84.0 51.0 Approved Rs. Crore 15.8 15.4 8.2 39.4 15.7 Actual* Rs. Crore 7.0 10.0 6.0 23.0 12.5

T E R I Report No. 2006RP23

237 Analysis and compilation of tariff orders

Year BYPL NDPL Total FY 2005-06 BRPL BYPL NDPL Total Proposed 80.0 25.0 156.0 81.0 81.7 34.4 197.1 Approved 28.8 24.5 69.0 36.5 50.4 41.7 128.6 Actual* 24.8 16.7 54.0 41.3 45.2 42.3 128.7

Z Actuals given here are based on the revised estimates given by the petitioners in the ARR petition

S O U R C E Tariff orders issued by DERC for various years

Rate of return

= ! , T 4 I = CE ) - ) = A = 4 = = ) = . = < ) *J 6 I ,& 4 = ) = D ) ! 0 D ) ! 3 D ) ! = , ; C ) < * I ) 4 CE *J 64 = I ) = = = ; ,,96 ,,&6 & ) 4 3 ) , T D= I ! =

&J *4 ,

I &*)

=

,,96 * )

) CE

% 4 =

I 4 = 4 - I

T E R I Report No. 2006RP23

238 Analysis and compilation of tariff orders - = 4 - 4 \ = 4 3 4 0 = \ ) ) I \ @ I = 4 = = ! ) \ = 4 3 0 = 4 2 = 4 = 4 - 0 3 \ ;) )< = ) = ) 3 -

-

\ 2 3

\3

/ ) I = . ) 4 - * &* = CE 6J 4 ,* * ) I

= = = I -

D ) !4

= ,6, , )

-

-

I )

-

Table4.34 Return on equity and free reserves over the years (Proposed Vs Approved<

FY 2003-04 Description Petition Order BRPL 98.4 79.6 BYPL 24.8 22.4 NDPL 68.1 61.7 Total 191.3 163.8 BRPL 133.4 82.9 FY 2004-05 BYPL 78.7 25.5 NDPL 94.5 73.3 Total 306.5 181.7 BRPL 154.6 101.9 FY 2005-06 BYPL 107.2 30.9 NDPL 112.9 92.4 Total 374.7 225.2

S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

239 Analysis and compilation of tariff orders

ARR

; - * &6 4 = < =

Table 4.35 Annual Revenue Requirement (Proposed, approved and actual)

BRPL FY 2003-04 Expenditure Return on equity and free reserves Non-tariff income ARR excluding power purchase cost FY 2004-05 Expenditure Return on equity and free reserves Non-tariff income ARR excluding power purchase cost FY 2005-06 Expenditure Return on equity and free reserves Non-tariff income ARR excluding PPC Proposed Approved 507.0 98.4 31.5 573.8 337.0 79.6 25.3 391.3 Actual 492.0 100.0 16.0 576.0 Actual 471.0 113.0 37.0 547.0 Actual 431.5 107.2 57.8 480.9 306.4 24.8 21.0 310.3 BYPL Proposed Approved 209.0 22.4 18.1 213.3 Actual 269.0 25.0 3.0 291.0 Actual 351.8 34.0 23.8 362.0 Actual 307.5 30.9 33.8 304.6 445.1 68.1 6.6 506.6 NDPL Proposed Approved Actual 275.8 61.7 8.9 328.6 542.0 79.0 8.0 613.0 1258.5 191.3 59.1 1390.7 Total Proposed Approved 821.8 163.8 52.3 933.3 Actual 1303.0 204.0 27.0 1480.0 Actual 1252.6 241.8 79.9 1414.5 Actual 1123.4 230.3 116.5 1237.3

Proposed Approved 635.0 133.0 17.0 751.0 342.0 83.0 35.0 390.0

Proposed Approved 432.0 79.0 4.0 507.0 239.0 26.0 15.0 250.0

Proposed Approved Actual 489.0 94.0 11.0 572.0 304.0 73.0 19.0 358.0 429.8 94.8 19.1 505.5

Proposed Approved 1556.0 306.0 32.0 1830.0 885.0 182.0 69.0 998.0

Proposed Approved 512.0 398.0 155.0 31.0 636.0 102.0 32.0 468.0

Proposed Approved 369.3 297.6 107.0 22.4 453.9 30.9 20.5 250.0

Proposed Approved Actual 409.4 345.3 384.5 112.9 16.2 506.1 92.4 23.0 414.6 92.2 24.9 451.8

Proposed Approved 1290.7 1040.9 374.9 69.6 1596.0 225.3 75.5 1190.6

* Actuals given here are based on the revised estimates given by the petitioners in the ARR petition S O U R C E Tariff orders issued by DERC for various years

= =

2100.0 1800.0 1500.0 1200.0 900.0 600.0 300.0 0.0 FY 2003-04 Proposed

; C

4 * ,&

=

<

FY 2004-05 Approved

FY 2005-06 Actual

Figure4.13 Movement in ARR (proposed, approved and actual) over the years

S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

240 Analysis and compilation of tariff orders

Tariff rebalancing Tariff rationalization

) = 4 L = L = = 4 4 = 4 ) 3 = CE 6J 4 = ) = 0 J I ) = J 4I CE 6J L 4 ) 3 - I - 0 = 4 - = = L = = 0 = = 4 4 L = = 3 = 0 ()! 4 J = 4) I 0 = 0 = CE &J *

New initiatives in tariff design

( 0 - ! ) L = "

T E R I Report No. 2006RP23

241 Analysis and compilation of tariff orders ;$? & ? ? ) = J ( % ( ) -J =L 3 4 . $ J 3 -

;$? ) ? ? , (

-

J, ]

,

;$? , ? ? 4 CE

6J 4 J!

)

3 - = , 0A

0F

-

CE ) !

&J *4 -

) ! = = 4 -

J CE ! (52 ;( 3 ! ) H! / B ) " $ ) / $ $ = =

0 *J 64 ) 5 $;5 < ! 3 0 3 ) ) 3 $ < 4 !. )H(

H! = = / -

=

I 4 I

-

- = 4

T E R I Report No. 2006RP23

242 Analysis and compilation of tariff orders ) H ! 0

Implementation of multi-year tariff framework

) 4 = H - I = 3 *, ! ! ! - 4 J - *J 0 , ) 3 , = 0 = J 0 = J -

Category-wise tariff

- *& &J *4 CE 4 / 3 , *

Table 4.36 Category-wise average tariff in FY 2003-04, FY 2004-05 and FY 2005-06

Category Domestic Non-Domestic Industrial Agriculture Railway Traction (incl. DMRC) Others Total 2003-04 Rs./kWh 2.56 5.20 4.54 0.73 4.78 5.85 3.60 2004-05 Rs./kWh 2.80 6.09 5.34 1.54 2.43 4.03 3.97 2005-06 Rs./kWh 2.80 6.12 5.38 1.56 3.15 5.51 4.37 % Change in FY 2004-05 % Change in FY 2005-06 over FY 2003-04 over FY 2004-05 % % 9.3% 0.0% 17.3% 0.5% 17.6% 0.9% 109.3% 1.7% -49.1% 29.4% -31.2% 36.9% 10.2% 10.1%

= *J 6 CE

L 6J J 4

CE -

H - 0 ! CE 6J 4

S O U R C E Tariff orders issued by DERC for various years

T E R I Report No. 2006RP23

243 Analysis and compilation of tariff orders

Box4.1: Tariff rollback in FY 2005-06

In FY 2005-06, the DERC announced a tariff increase of 10% for domestic consumers to be implemented in Delhi. Complaints of faulty metering and billing coupled with the hike announced by DERC raised consumers' ire and there were widespread pretests against the tariff increase. Some consumer organizations and associations urged consumers not to pay the increased tariff. Initially GoNCTD stood firm in the support of tariff hike but later relented and announced that the tariff increase would be rolled back with GoNCTD providing subsidy for 50% of the tariff increase for domestic consumers and 100% for the agriculture consumers. The remaining 50% of the tariff increase for domestic consumers would be covered by the discoms. In their petition to DERC regarding the rollback, the discoms asked that the loss of revenue due to the rollback be adjusted against any against from the over achievement of loss reductions. In response, DERC said that, "....the discoms are given the liberty to raise the issue of the recovery of the incentive in their ARR petition for FY 2006-07, which would be examined by the Commission,, on merits, based on the provision of the law". In other words, the 50% rebate may not be provided by the companies but will be paid from the expected additional revenues due to over achievement in AT&C losses that would have otherwise been used to reduce the tariff increase next year. According to DERC, the total value of the rebate provided by GoNCTD to domestic and agriculture consumers was Rs. 180 Cr of which Rs. 91 Cr was provided by GoNCTD and Rs. 89 Cr is being covered by the discoms. S O U R C E Prayas Report titled "A critical review of the performance of Delhi's privatised distribution companies and the regulatory process", May 2006

Cross subsidy

) 6J = ) I I = J 0 = J 6 CE = *J 6 CE

= *J 6 = CE

I 6J 4

) = )

CE =

J

4 CE

Table 4.37 Change in cost-recovery for various consumer categories over the years (approved figures)

Avg. tariff Rs./kWh 2.56 5.20 4.54 0.73 4.78 5.85 3.60 2003-04 Avg. cost Rs./kWh 3.45 3.45 3.45 3.45 3.45 3.45 3.45 Recovery % 74% 150% 131% 21% 138% 169% 104%1 Avg. tariff Rs./kWh 2.80 6.09 5.34 1.54 2.43 4.03 3.97 2004-05 Avg. cost Rs./kWh 3.51 3.51 3.51 3.51 3.51 3.51 3.51 Recovery % 80% 173% 152% 44% 69% 115% 113% Avg. tariff Rs./kWh 2.80 6.12 5.38 1.56 3.15 5.51 4.37 2005-06 Avg. cost Rs./kWh 3.97 3.97 3.97 3.97 3.97 3.97 3.97 Recovery % 71% 154% 136% 39% 79% 139% 110%

Particulars Domestic Non-Domestic Industrial Agriculture Railway Traction (incl. DMRC) Others Total

S O U R C E TERI estimates

The over recovery from the distribution business is on account of the subsidized bulk supply rate that the discoms pay to Transco.

1

T E R I Report No. 2006RP23

244 Analysis and compilation of tariff orders - = 4 L - = = 4 J - = = = J 4 J =

Convergence Index (CI)

C CE * ,* 6J CE &J * = 4 ) 4 CE = *J 6 ! J CE 6T &J * CE 6J 3 CE &J * = 4 = - ,6T CE 6J

2

0.60 0.52 0.50 0.40 0.30 0.20 0.10 0.00 FY 03/04 (E) FY 03/04 (A) FY 04/05 (A) FY 05/06 (A) 0.38 0.34 0.39

Figure 4.14 Trend in convergence index

S O U R C E Tariff orders issued by DERC for various years

Subsidy support by the Government

- = 4 - 0 4 = H= L - 0 = - D 4 - * &+ ) ! D ) !

T E R I Report No. 2006RP23

245 Analysis and compilation of tariff orders

Table 4.38 Transitional support provided by GoNCTD along with its phasing

Year FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 Total SOURCE Transitional support Rs. Crore 1364 1260 690 138 Nil 3452

= % = = &T ! 4 0 = 0 -

4 - , T 0

0 ;. ) / <1 6T = % 4

=

0

3 - * &9 =

Table 4.39 Tariff hike planned vis-à-vis actual hike

Planned Actual SOURCE 2002-03 10% Nil 2003-04 10% 5.01% 2004-05 10% 10%

2005-06 5% 6.6%

2006-07 3% 0%

- = C 4 = L

= 4

Regulatory Asset

) 6J = ) H 6J ) 4 H H P I CE L *J 6 > & CE 6 I 6J ) L 6) CE CE 9 ) = 6*+

1

Although this did not form part of the policy document notified by the GoNCTD

T E R I Report No. 2006RP23

246 Analysis and compilation of tariff orders &*& ) = = = 5 " = = &*& )

Table 4.40 Regulatory asset over the years

BRPL 2004-05 Revised 2005-06 Amortization in 2005-061 Remaining 267 221 71 150 BYPL 138 120 12 108 NDPL 192 207 122 85 Transco 100 0 0 0 Total 696 548 205 343

S O U R C E Tariff orders issued by DERC for various years

C *J 6 CE 4 = = ) 6J

- = 4 -

) J 3 A 4

0 CE J 6,+ ) L = = J = H CE CE J

(Rs Crore)

Balance regulatory asset after adjusting over achievement

CE *J 6 *J 6 ,, ) = CE *J 6 L & ) CE *J 6 ) ,, )

H

6

Table 4.41 Amortization of Regulatory Asset in FY 2004-05 - based on second truing up

Discom Revenue gap/(Surplus) Petitioner Overachievement Revenue gap/(Surplus) in Rs. Crore Commission Revised regulatory asset

Amortization

BRPL BYPL NDPL Total

254 169 274 697

71 12 128 211

215 100 203 518

215 100 203 518

71 12 128 211

144 88 75 307

S O U R C E Tariff orders for FY 2006-07

= = 9) = = 4 = 0 L ,6 )

&

) CE

6J

L ) 4 /E$ 54

!$ / $ 54 5 L

% - 0 CE

1 This amortization was on account of revenue accrued due to overachievement of losses by the discoms.

T E R I Report No. 2006RP23

247 Analysis and compilation of tariff orders J H 4 CE *J 6 ) L

Table 4.42 Amortization of Regulatory Asset in FY 2005-06

Discom Balance Regulatory Asset (Rs. Crore) BRPL BYPL NDPL Total 75 144 88 307 Revenue gap/ (Surplus) in Rs. Crore Commission (73) (64) (73) (210) 73 64 73 210 Amortization of revenue surplus (Rs. Crore) Balance Regulatory Asset (Rs. Crore) 2 79 15 96 2 79 15 96 Net revenue gap / (Surplus)

S O U R C E Tariff orders for FY 2006-07

Electricity duty

- * *& = D= !

Table 4.43 Electricity duty collected by the discoms (in Rs. Crore)

NDPL FY 2003-04 FY 2004-05 FY 2005-06 61 64 69

BRPL

80 87 98

BYPL 48 47 51

Total 189 198 218

S O U R C E Tariff orders issued by DERC for various years

Governance

.- I D= = I ) = = I = $ ! 0 ) ! ) I 4 4 0 4 = = = 3 3 = = 4 = = ) ! F $ / ! 3

T E R I Report No. 2006RP23

248 Analysis and compilation of tariff orders ! 4 ( &; - = 0 I L ( 3 0 0 $ ! = 4 0 & CE &J *4 ) 0 > ) <4 =

$ @

!

Timeliness of tariff orders

CE &J *4 CE J & ; !$ 5< > = ;/ $ ! 5<4 & ;/E$ 5< I ) ! <4 ; < CE 4 4 &J * = % ) CE 2 -

. D= ;

4

0 $

= = 4 J &

CE ) -

*J 6

CE

6J =

4 =

- 0 ; J & J I ! - * ** - ! ) =

< -

T E R I Report No. 2006RP23

249 Analysis and compilation of tariff orders

Table 4.44 Timeliness of tariff order issued by DERC

Year 2003-04 Date of filing ofDate of acceptance of Date of Issuance of Days from filing to Days from petition petition Order acceptance acceptance to issuance BRPL 06-Mar-03 BYPL 06-Mar-03 NDPL 04-Mar-03 2004-05 BRPL 26-Dec-03 BYPL 26-Dec-03 NDPL 17-Dec-03 2005-06 BRPL 29-Dec-04 BYPL 29-Dec-04 NDPL 31-Dec-04 10-Mar-05 10-Mar-05 10-Mar-05 07-Jul-05 07-Jul-05 07-Jul-05 71 71 69 119 119 119 16-Jan-04 16-Jan-04 16-Jan-04 09-Jun-04 09-Jun-04 09-Jun-04 21 21 30 145 145 145 06-Mar-03 06-Mar-03 04-Mar-03 26-Jun-03 26-Jun-03 26-Jun-03 0 0 2 112 112 114

S O U R C E Tariff orders issued by DERC for various years

& , 3 CE *J 6 ! )

) ! )

Public participation

0 = ) 0 42 = @ = = 4 -

4 ) I L $ 0 = = ( - * *6 = A 0 = 0 P ) A 0 4 ) C 4 ) =

= -

J

)

-%

T E R I Report No. 2006RP23

250 Analysis and compilation of tariff orders

Table 4.45 Level of public participation

Year 2003-04 2004-05 2005-06 Time given for filing comments /objections in days 40* 31 31 No. Of written objections 78 78 98

* In FY 2003-04, an extension of 9 days was granted for filing the objections S O U R C E Tariff orders issued by DERC for various years

-% 4 4

= 4I A

4

4 3 -% ; A <4 D =

G )

- 0 = =

A 3 CE 6J D= CE 6J

! 3 -

Staffing

! ( ! - 0 ) 3 0 L 0 = = ) 0 4 3 ) 4 4 0 ) I I ! D=

Status of directives issued by DERC

CE - ** = ; = = < = CE 6J ) = 6J 4 ) -% =

T E R I Report No. 2006RP23

251 Analysis and compilation of tariff orders

Table 4.46 Compliance status of directives given by DERC Directive1 AT&C losses ­ The Commission had directed the petitioners to provide the break up of energy input, energy sold, energy billed, revenue realisation against billed energy and district-wise AT&C losses on a monthly basis within 15 days after the end of the month Payment through cheques ­ The Commission had directed that in case of bill of more than Rs. 4000/-, payment shall be accepted only through Account payee cheque/DD. Commission also directed that all other consumer with bills less than Rs. 4000/- should also be encouraged to pay cheque / DD. The Petitioners submitted that the message for information to the consumers is carried out on the bills. STQC Directorate of the Ministry of Information Technology after conducting an audit of Billing Software of the petitioner has mentioned in its findings that the software of the petitioner did not have any validation of accepting payment for more than Rs.4000/- by cash. The Commission has therefore directed that suitable changes be made in the software to have this validation and report the compliance within one month of the issue of this order. Energy audit of employees of the erstwhile DVB The Commission had directed the petitioners to conduct energy audit in case of those employees of the erstwhile DVB whose average consumption pattern is too low as compared to the average level of consumption for domestic consumers and submit the report within three months from the date of issue of the order. Special Voluntary Retirement Scheme The Commission had directed the petitioners to incorporate the details of actual date of super annuation of employees who opted for SVRS in the estimated savings from SVRS and submit the same to the Commission. Capital Investment - The Commission had directed the petitioners to submit the complete DPR along with costbenefit analysis for Schemes more than Rs 2 Crore for obtaining the Scheme wise investment approval from the Commission as per the terms and conditions of the license for Distribution and Retail Supply of Electricity with in a month from the date of issue of the Order The Quarterly progress reports on implementation of capital schemes have been submitted. The details along with the estimated savings were furnished by the petitioners in the ARR petition. While both BRPL and BYPL are yet to submit the report after proper investigation, NDPL has already submitted the same. The loss levels in the NDPL housing colonies were found to be much lower than the company average. Response All the discoms have submitted the information. There was a slight delay in submission of the information on which the Commission has directed the utilities that it should be avoided in future.

1 Most of the directives are common to all utilities. However, where it is applicable to any specific utility it has been separately indicated.

T E R I Report No. 2006RP23

252 Analysis and compilation of tariff orders

Directive1 Cost Audit ­ The Govt. of India has prescribed Cost Accounting Record (Electricity industry) Rules 2001 under which electricity utilities are required to maintain records to show their costs and other details. The Commission had directed that the Licensees comply with this rule and separate accounts be maintained and submitted to the Commission since the introduction of this Rule. Asset capitalisation (NDPL)­ The petitioner was directed to submit the complete details of assets capitalized during the year Oil cooled transformers ­ The Commission had directed the petitioners to provide the details of oil filled oil cooled transformers installed by them in residential/commercial buildings. Both, BRPL and BYPL had also submitted a list of oil-filled, oilcooled transformers in use in residential / commercial premises including CGHS. However, there were certain he discrepancies in the list which have been indicated to the petitioner and the petitioner has been advised to get the survey of the complete area falling under their jurisdiction and submit a fresh list which is yet to be received in the Commission. Sale/retirement of assets - The Commission had directed the petitioners to file a separate petition to the Commission within one month of the issue of the Order providing the details of the assets that are to be retired. The petition was to include complete details with respect to each asset retired/proposed to be retired. Separation of corporate offices and employees common to BRPL and BYPL within three months from the date of issue of the order. In addition the Commission had also directed BRPL and BYPL to ring fence accounts and stores licensee wise within three months and report the compliance of the same to it. Further, it was also to separate within three months A&G expenses that is currently common to these Discoms. BYPL was to shift its office in BYPL area to mitigate the problems faced by the Commission. Prior approval of any increase in the A&G expenses was to be taken. Both BRPL and BYPL had submitted a letter containing details of sale/ retirement of assets. The Commission has asked them to file a petition providing the details of retirement of assets along with clarifications. The petitioners have complied with the directive and submitted the details to the Commission NDPL has submitted a separate petition providing the details of assets retired in FY 2002-03, FY 2003-04 and FY 2004-05. NDPL has submitted the list as per the Commission's requirement. Response BRPL and BYPL have confirmed that proper cost records as prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 are maintained by them. The Commission has asked them to submit the same. NDPL has submitted that it is in process of preparing the same and shall submit once it is complete.

NDPL has complied with the Directive

T E R I Report No. 2006RP23

253 Analysis and compilation of tariff orders

Directive1 Installation of meters capable of recording kVAh consumption- In case where the meters capable of recording kVAh consumption have not been installed for NDLT and SIP consumers with sanctioned load above 10 kW, the Commission had directed the Petitioner to install the meters capable of recording kVAh consumption within 60 days from the date of issue of the Order and report the compliance to the Commission. Depreciation (NDPL) ­ The Commission had directed the petitioner to provide pro-rata depreciation considering actual usage / operation (in number of days) of asset during the financial year. NDPL has submitted that the computation of depreciation fro FY 2004-05, as provided in the audited accounts of the company and reflected in the relevant formats of the petition, is based on the actual usage / operation of assets. The depreciation for FY 2005-06 and estimates for FY 2006-07 have been computed on pro-rata basis with the assumption that the capitalization of various assets would happen through-out the year at regular intervals, thus resulting in an effective depreciation for 6 months.

S O U R C E Tariff orders issued by DERC for various years

Response The Petitioner has submitted that program of installation of meters has been taken up in right earnest. The job has been completed except in some cases where either the premises were not accessible or in those cases where there has been a resistance from consumers, slowing down the replacement program.

Regulatory Initiatives

Implementation of RIMS (Regulatory Information Management System)1

! ) = ( ( = ,, &4 = = = = $ . $ = $ 7 = ( .. = = (. 7! = ;. . < 7F = = . "J I (. . ; = (. < -% = (. "J

? ; 1

N =

(. 4 -4

-

= <4 0

J

Source: Provided by DERC officials during visit of TERI team to DERC Office on 1st December 2006

T E R I Report No. 2006RP23

254 Analysis and compilation of tariff orders 4 = 4 4 4

I 5 3 ) = J 4!

)

N = 0 0 (. = = 0

) =

= ! - ! = )

= 4 = -

= ! )

Consumer advocacy and redressal mechanism

= H & , > & !$ 5 )D C F F ( , /. . ? 0 $ F )D C 6 = 3 & C 4 = )D CP 4 ! ) = = = 4 H = 4 *& ! )

Cases and appeals

! , I 4! 1 2

) / $ /E$ 54 5 4 3 ( $ $ * ( P ,99* !$ 54

-

http://delhigovt.nic.in/rti/appellate http://www.bsesdelhi.com/ENG/Aboutus/in_undertaken.asp 3 The Hindu, Jan 2005, `Ombudsman holds discom guilty, order refund'

T E R I Report No. 2006RP23

255 Analysis and compilation of tariff orders A ) ( . . 4 ) ) ) . A ) 0 0 4 * ( - 0 > = 4 < - I I = = ) ! ) .

1

) 3 4

$ = I

) )= H 4 0 . = = 3 3 4 ) ) ;F < . & &&

-

;F < = = %

= = -

-

)

-

/ $ /E$ 54 5 % CE

!$ 54

4 *J 6 4 -< , T 3 4 <- 0

3

= 1

"J

As discussed with the officials of DERC

T E R I Report No. 2006RP23

256 Analysis and compilation of tariff orders

;< -

$

! =

-

!

)

) = I

!

; < A

) . ) !. )H( 4 $ = =

. = 3

4

; <A

, T H = ) % = !. )H( ; =< A / 0. $ !. )H( ! 2 = 4 I - I = 3

) = / 0.

3

=

;=< A ) - ) & ,, , H 4 !. )H( ;= < . !. )H( = ;= < A ) - I 0 = H 3 4

3 9T )

4

= = , > =

Directives issued by GoNCTD

3 = !

T E R I Report No. 2006RP23

-

, 4

257 Analysis and compilation of tariff orders ;! 3 ,<4 ! )4 , = D ) ! !F / =

-

=

=

L = = D

= = - D ) ! ! F / 4 ) ! )

-

Applications for availing open access

) & > - Table 4.47 Phasing schedule for open access

S. No. 1 2 3 Particulars Delivery of electricity for use by consumers with connected load of 5 MW and above Delivery of electricity for use by consumers with connected load of 3 MW and above Delivery of electricity for use by consumers with connected load of 1 MW and above Date of introduction 1st July 2007 1st January 2008 1st July 2008

4

S O U R C E DERC Website

$

4 = -

0 =

! -

Status of annual accounts

= ) ) -

Other studies on power sector reforms in Delhi

. ! % ! 4 4 C 4 D= 4

1 1

-

"

= L

!

7 P -

= $ <

) ;>

! P$ = 7$ H

!

-

T E R I Report No. 2006RP23

258 Analysis and compilation of tariff orders % = G ) = = ) G ) = 4 0 2 ) C = J . 0 = = 4 = @ G ) = 43 I = 0 I . " 7 = B C 3 I 4 = J / = ) 0 D ) ! 4 7 = ! ) 4 G ) 7 0 4 = ! 4 = / I = J = % ! = = = = 5 ++ I

J

T E R I Report No. 2006RP23

259 Analysis and compilation of tariff orders

Regulations notified by DERC

! )

Table 4.48 Regulations notified by the Commission

Regulations DERC (Performance Standard - Metering and Billing) Regulations, 2002 DERC Comprehensive (Conduct of Business) Regulations, 2001 DERC (Management and Development of Human Resources) Regulations 2001 DERC (Delegation of Financial Powers) Regulations DERC (Appointment of Consultants) Regulations 2001 Human Resource Development Regulations (Amendment) DERC (Guidelines for establishment of Forum for redressal of grievances of the consumers and Ombudsman) Regulations 2003 DERC (Procedure for filing Appeal before the Appellate Authority) Regulations, 2005 DERC (Treatment of Income from Other Business of Transmission Licensee and Distribution Licensee) Regulations, 2005 DERC (Terms and Conditions for Open Access) Regulations, 2005 DERC (Intra-State Electricity Trader) Regulations, 2005 DERC (Medical Attendance) Regulations, 2003 DERC (Grant of Consent for Captive Power Plants) Regulations, 2002 Draft Multi-year tariff regulations for generation, transmission and distribution S O U R C E DERC Website

Date

19th August 2002 9th March 2001 16th April 2001 6th August 2001 6th August 2001 26th May 2003 11th March 2004 28th November 2005 28th November 2005 3rd January 2006 23rd January 2006 21st April 2002 12th March 2003 October 2006

Power sector ratings

( = CE 6J $ CE 4D 4! &J *4 CE *J 6

Table 4.49 Power sector ratings for Delhi

FY 2003-04 Rank Score 1 57.00 FY 2004-05 3 51.91 FY 2005-06 3 50.87

T E R I Report No. 2006RP23

260 Analysis and compilation of tariff orders 3 0 0 ' $ 3 . = 2 ;! ( F = < 4 . . = = 44 = = = = B " ! 4

2

= & +4

= = ; G )

2 < D 46 *J 6 =

Conclusions

! D . 4 H L $ 0 = D= 4 D= L = = - 0 0 ! 4 = 0 = = = G ) = 4 = D ) ! =

T E R I Report No. 2006RP23

261 Analysis and compilation of tariff orders ) = = 0 CE D= = 6J = = H 4 3 = 0 = = = ! $ - 0 = 4 4 = A

T E R I Report No. 2006RP23

262 Analysis and compilation of tariff orders

Annexure 4.1 TERI comments on MYT consultative paper circulated by DERC

& '( )

[email protected] ) = = 3 0 = 2 = 4 3 $ ) ! ) $ J D - S 4 4 4 J = 3 (E P . ) ) *J 9 0 4 3 I ( J ;(E < N % 0 =

- I

[email protected] = 2 = = = 4 H = = = = = 44 = = = = = = =

-

T E R I Report No. 2006RP23

263 Analysis and compilation of tariff orders

* [email protected] F ) 3 & ) [email protected] = $ 4 = + C = - C = 4 = 4 -

+

/ 5

! -

-

0 -

-

* + [email protected] / 0 4 = = I * , + = 2 / 0 ! = . 0 = !

[email protected] = N (E

0 -

=

I

=

T E R I Report No. 2006RP23

) ;

264 Analysis and compilation of tariff orders <0 3 = N = = - /0 $. 3 [email protected] / / I 12 ( + = 4 4 C 4 "* =

4

0

3 3 3 ) 4 3 0

(E ) 2 0 (E ) I

-

0 -

-

0

/0 *

4

5 +

4 !

5

[email protected] P 4 S 0 # * = ) 4I P $ 4 S 0 0

& ( 6 [email protected] ! ) ^ ) ; - I < N 4 ) 4 4 5

)

4 -

T E R I Report No. 2006RP23

265 Analysis and compilation of tariff orders 4 = 7 [email protected] 2 = 4 0 / = 4 = 4 = JOJ= I 4 [email protected] -&= 4) = = 4 3 / A =

-

A 4

/ -

4

-)?

) 3 =

3 =

[email protected] = 4 = 0 = =

8 ) = [email protected] H = 4 - = - = 4 N

T E R I Report No. 2006RP23

-

-

266 Analysis and compilation of tariff orders

( [email protected] ) = = I = ) 0

4

5

= 0N - -

4 L

$-&& ) -

3 - ! -

G ) ! 0 5 ! 3 -

4

[email protected] 4 ! 0 ) 5 ! ! - 0 $9 : ! 1 ; [email protected] ) = ) = 4 HG 3 ( = J 3 HG 3 ( L 0 ! <= #9 '$$ $9 = 3 G )

2 = 4 HG 3 (

T E R I Report No. 2006RP23

267 Analysis and compilation of tariff orders

CHAPTER

5 Jharkhand

> ; . ; . . , D= 0 . > ) . > 0 ) ) < *4 & ) ) ;D > < )

Introduction

< ,99+

4> ) .

CE ) CE ) * =

> / ;> 0 . / < CE &J *4 . )H CE 6J J F 5 CE *J 6 CE 6J N - > / . CE *J 6 CE 6J 2 = 4 / CE J 4 ) C > / . &J * CE &J *

= *J 6 N 0

/ / / - I / 2 = 4 ) / 4 C ,+ ! 4 4

I /

> = / C 2 = 4 4 4 ) % 4 ) CE

/ J CE J ,

, -

>

4 4

& &

C

) )

0 4> / . -

> / . %

H , . CE J

4 = CE

/ J &

CE &J * )

=

T E R I Report No. 2006RP23

268 Analysis and compilation of tariff orders CE = C 9 ! CE CE 6J ) J 2 = 4 4 J 4 *J 6 4 / % CE > / . J -

=

CE J

Demand supply gap

J = * T *J &J = 6 * CE CE 0 , T CE 6J 6J , *J 6 > 0 I , T CE T CE

Movement in Installed Capacity

- 6, > 0 = = = = =L = * ) D , * (A 0 I - = < A = J , CE 6J ; <4 T = CE 4 6J = , ,T CE 4 - 6 ,4

;

Table 5.1 Movement in Installed Capacity

Installed capacity (MW) Thermal Hydro Gas Others Total Installed capacity by ownership State Sector Private/Licensee Total state & Private sector Share in Central sector stations Total

SOURCE

FY 2001-02 1500 130 0 0 1630

FY 2002-03 1500 130 0 0 1630

FY 2003-04 1500 130 0 0 1630

FY 2004-05 1500 130 0 0.08 1630

FY 2005-06 1620 130 0 4.13 1754

1390 240 1630 185 1815

1390 240 1630 185 1815

1390 240 1630 185 1815

1390 240 1630 185 1815

1394 360 1754 262 2017

Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07

T E R I Report No. 2006RP23

269 Analysis and compilation of tariff orders CE 6J 4 ,& (A H , 6* (A4 * (A 3 9T

,

(A

FY 2002-03 retrospect

> / . + ) CE J & CE J & - 6 , )

Table 5.2 Cash operating losses of JSEB in FY 2002-03

Description Total Earnings Expenses Less capitalised expenses Total expense Loss Prior period Credit/Charge Net Loss Depreciation Cash operating losses

SOURCE

Rs Crore 1554 1653 20 1632 77.8 4.5 82 60 12

Tariff petition filled by JSEB for FY 2006-07

Consumption and Access Sales/Demand estimation

CE &J *4 > / . 6T = &, * (@4 = 0 ; G !< 0 CE L = 4 H ) 0 = = &J *4 / ) = 4 -

, T 3

C

6, CE

CE 6J 4 ) D = , ,T

,J

T E R I Report No. 2006RP23

270 Analysis and compilation of tariff orders

4000 3000 2000 1000 0 Sales (MU)

FY 01-02 2328

FY 02-03 2481

FY 03-04 2730

FY 04-05 2862

FY 05-06 3418

Figure 5.1 Actual Sales in Jharkhand from FY 2001-02 to FY 2005-06 * Sales figure for the FY 2003-04 are the Commission approved figures

SOURCE

Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07

Category wise sales

- 6& &J * *J 6 ) = = = / ) J 3 Table 5.3 Category wise Sales for FY 2003-04, FY 2004-05, FY 2005-06 and FY 2006-07

FY 2004-05 Actuals* 639 133 111 1190 309 45 42 2469 Actuals* 777 140 113 1318 383 56 75 2862 FY 2005-06 Actuals** 989 159 116 1485 530 59 80 3418 FY 2003-04 to FY 2005-06 CAGR (%) 24% 9% 2% 12% 31% 15% 38% 18%

= CE = 6J

$

-

) - > / . CE CE &J *4 3 , T 4 = =

CE &J *4 CE - = 4

)

Energy sales (MU) Proposed Domestic Commercial LT Industry HT Industry Railway Traction Agriculture Public Street Lighting Total

SOURCE

FY 2003-04 Approved 577 148 163 1387 370 48 37 2730 669 172 188 1608 429 56 43 3164

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07.

C =

1

;

<

-

) D

- 5.3 ,+T;

There was no tariff filing and hence no tariff order for FY 2004-05 and FY 2005-06. The actuals reported by the JSEB are provisional/revised estimates, as per the submitted tariff petition for FY 2006-07.

T E R I Report No. 2006RP23

271 Analysis and compilation of tariff orders CE &J < FY 2003-04 Agriculture 2% Railw ay Traction 13% Public Street Lighting 2% Domestic 26% Commercial 5% LT Industry 4%

HT Industry 43% A griculture 2%

I 2

FY 2005-06 Public Street Lighting 2% Domestic 29% Commercial 5% LT Industry 3%

Railw ay Traction 16%

HT Industry 48%

Figure 5.2 Percentage contribution of various categories in the total sales in FY 2003-04 and FY 2005-06

SOURCE

Tariff order FY 2003-04 and as reported by JSEB in the Tariff petition for FY 2006-07

C =

5.

CE 4 2 = > / . = &J *

CE

= 6J

= /

J

Number of Consumers and Sanctioned Load

- 5.4 ,*T = J Table 5.4 Category wise number of consumers (in '000)

Category Domestic-M Domestic-UM Total Domestic Commercial-M Commercial-UM Total Commercial Irrigation -UM LTIS-M HT-M Railway-M Others Total

SOURCE

= ) D -

=

FY 2002-03 335 243 578 38 18 56 8 6 0.73 0.01 0.88 650

FY 2003-04 396 264 660 43 19 62 8 7 .75 0.01 0.9 739

FY 2004-05 478 293 771 47 20 67 13 7 0.8 0.01 0.9 860

FY 2005-06 555 311 866 52 21 72 10 8 0.9 0.01 0.7 958

CAGR FY 2003-06 18% 9% 14% 11% 5% 9% 9% 8% 6% 6% -5% 14%

Tariff petition filed by JSEB for FY 2006-07

H =

0

3 - 5.54

T E R I Report No. 2006RP23

272 Analysis and compilation of tariff orders CE CE

J & 6J

*,T 4

& T

Table 5.5 Un-metered consumers as a percentage of total consumers

Category Domestic-UM Commercial-UM Irrigation -UM Total

SOURCE

FY 2002-03 37% 3% 1%

FY 2003-04 36% 3% 1%

FY 2004-05 34% 2% 2% 38%

FY 2005-06 32% 2% 1% 36%

41% 39% Tariff petition filed by JSEB for FY 2006-07

C

- 6 64 - > / .

= L =

= =

- 6 =

= 4

Table 5.6 Sanctioned load over the years (MW)

Category Domestic Commercial Irrigation & agriculture Low Tension High Tension Railway Traction Others Total

*Provisional; **Revised estimate

SOURCE

FY 2004-05* 321 170 42 295 320 117 19 1265

FY 2005-06** 410 222 50 335 420 117 25 1554

% Increase 28% 31% 19% 14% 31% 0% 32% 23%

Tariff petition filed by JSEB for FY 2006-07

Observations

- 6 CE 6J = =

T E R I Report No. 2006RP23

273 Analysis and compilation of tariff orders

Table 5.7 Sales and revenue contribution for various years for FY 2005-06

Category Domestic Commercial LT Industry HT Industry Traction Agricultural Public lighting Total * As on 31st March 2006 ** Revised estimates as reported by JSEB in the tariff petition for FY 2006-07

SOURCE

No. Of consumers* 866 72 8 1 0 10 1 958

% Of total consumers 90% 8% 1% 0% 0% 1% 0% 100%

Consumption** (MU) 989 159 116 1485 530 59 80 3418

% Of total consumption 29% 5% 3% 43% 16% 2% 2% 100%

Revenue** (Rs Crore) 123 58 71 597 247 7 8 1111

% Of total revenue 11% 5% 6% 54% 22% 1% 1% 100%

Tariff petition filed by JSEB for FY 2006-07

- = 4 9 T = - 6+ &T 5 3 6J =

Table 5.8 Consumption per consumer for FY 2004-05 and FY 2005-06

Category Domestic Commercial Irrigation & agriculture Low Tension High Tension Railway Traction Others No. of Consumers (In `000) 771 67 13 7 1 0 1 859513 FY 2004-05* Consumpti Consumption on (MU) per consumer 777 140 56 113 1318 383 75 2862 1008 2093 4251 16642 1651629 29461538 83426 3330 No.of Consumers (In `000) 866 72 10 8 1 0 1 957794

3 9T = 4 H ,T 4 T

,,T * T

= = T CE = 6J 3 4 CE -

FY 2005-06** Consumption (MU) 989 159 59 116 1485 530 80 3418

Consumption per consumer 1142 2197 5939 14515 1689420 40769231 107383 3569

Total *Provisional; **Revised estimate

SOURCE

Tariff petition filed by JSEB for FY 2006-07

- 69 CE 6J

= 3

CE J L =

*J 6

-

=

4 = = / -

2

= 4

=

T E R I Report No. 2006RP23

274 Analysis and compilation of tariff orders 3 = C 4 , = 0A =

Table 5.9 Sanctioned load per consumer for FY 2004-05 and FY 2005-06

Number of Consumers 771 67 13 7 1 0 1 859513 FY 2004-05* Sanctioned load (MW) 321 170 42 295 320 117 19 1265 Sanctioned load per consumer (KW) 0.42 2.54 3.19 43.45 401.00 9000.00 21.13 1.47 Number of Consumers 866 72 10 8 1 0 1 957794 FY 2005-06** Sanctioned load (MW) 410 222 50 335 420 117 25 1554 Sanctioned load per consumer (KW) 0.47 3.07 5.03 41.92 477.82 9000.00 33.56 1.62

Domestic Commercial Irrigation & agriculture Low Tension High Tension Railway Traction Others Total

SOURCE

*Provisional; **Revised estimate Tariff petition filed by JSEB for FY 2006-07

Status of rural electrification

= > &4* 4* 6 0 ;9 T< = *& 6T4 = > 0 , T 4

Table 5.10 Rural Household Electrification (in' 000)

Total number of Households having rural Electricity Households Unelectrified Households % Household unelectrified

SOURCE

3802 380 3422 90% Ministry of power, http://powermin.nic.in/JSP_SERVLETS/internal.jsp, accessed during December 2006

C =

4

= 4 = 9+ T =

4

T 0

, ,& =

Table 5.11 Electrification of Villages (in' 000)

Total number of villages 29

SOURCE

>

Villages having electricity 8

Unelectrified villages 22

% Villages unelectrified 74%

Ministry of power, http://powermin.nic.in/JSP_SERVLETS/internal.jsp, accessed during December 2006

T E R I Report No. 2006RP23

275 Analysis and compilation of tariff orders = > 0 6 ( ? > $ &9 ,+ ? > *J 6 4 22 ? , + /$ 5 C 4! ( $ F $ % 4/ 0 ) 4

2

) , 6&

5

1

;

)<4

*+

0 &, ( $ 4 * CE

=

CE >

*J 6 ; <4 /$ 5 *J 6 )

,6&+ /$ 5 = *

;!F )<

4 4)

! - 4? 4D 2L . F 0 E % ; D F D E< $ % ) = % - !F ) -

4. %=D

4D D

G

> / .

Efficiency improvement Approach for fixing loss reduction targets

CE &J *4 / 9 T = J &B = / = $ $ ! 4 G = = 0 = &+T 4 CE

) - 0 * T CE

/

P -

2 4 ) 6T4 &J * % -

=

= = 6T

1 Source: http://www.recindia.gov.in/download/jharkhand.pdf, accessed during January 2007 2 Source: http://www.dvcindia.org/notification/public.htm, accessed during January 2007

T E R I Report No. 2006RP23

276 Analysis and compilation of tariff orders CE *

Table 5.12 T&D losses in Jharkhand for and FY 2003-04, FY 2004-05, and

FY 2005-06

&J

Description T&D Losses

SOURCE

FY 2003-04 Proposed 38.00%

FY 2003-04 Approved 42.67%

FY 2004-05 Actual** 51.00%

FY 2005-06* Actual*** 47.00%

http://www.apdrp.com/apdrp/projects/pdf/AT&C_Loss_of_Power_Utilities.pdf,

accessed during January 2007 * For the FY 2005-06, the overall T&D losses comprise 44.69% in sub-transmission & distribution and 6.17% as transmission losses. **Provisional; ***Revised estimate

. 4 ; =

- > / . - > / . CE J 4 = = = CE 6J = 6,T * T = > / . = 0 > / . = =

1

- I =

< %

CE

*J 6

= = = -

H

Collection Efficiency

CE = ) 4 +9T +9+ ) 0 6T > / . = 4 ) = = 4 &J *4 > / . , T L > / . + ) 4

/ 4 L = 0

= CE J

=

The percentage of unmetered consumption in the total consumption is not available however; number of unmetered consumers in the total consumer base can be a reasonable proxy for deriving such an inference. The total number of unmetered consumers is approximately 36% in the total consumer base in FY 2005-06.

1

T E R I Report No. 2006RP23

277 Analysis and compilation of tariff orders

AT&C losses

- 6 ,& J &4 CE G ) > /P . &J * CE *J 6 G ) 6&T CE J & 9 &T CE - = 4 0 = > / . CE = *J 6 G )

=

Table 5.13 AT&C Losses of Power Utilities (%)

FY 2002-03 53%

SOURCE

FY 2003-04 65%

FY 2004-05 69.23%

http://www.apdrp.com/apdrp/projects/pdf/AT&C_Loss_of_Power_Utilities.pdf

and Tariff order FY 2003-04

Metering

- 6 ,* ,,0F = = 4! = 4

Table 5.14 Status of metering over the last two-years

Description 11-KV Feeder Distribution Transformer Consumer Metering (In Lakhs)

SOURCE

FY 2004-05 Nos. 461 16500 6.53 Metered 396 15000 4.9 % Age 86 91 75 Nos. 461 16500 6.53

FY 2005-06 Metered 396 15000 4.9 % Age 86 91 75

www.powermin.nic.in/projects/pdf/Metering%20status%20of%20consumer.pdf,

accessed during December 2006

Own generation

CE &J *4 > / . $ 5C *T 3 / 4 CE J & 0 / I 0 = $ 5C = 0 % = = I B ,&&+ (@ ,+T / -

) 0 T E R I Report No. 2006RP23

L = / I = 3

-

-

278 Analysis and compilation of tariff orders 4 3 $ 5C / = 0 0 $ 5C / . 2 = $ . = - = $ @ ; < H 4 4 3 0 I I = 2 = 4 / = = = ; < = 4 / 3 = 4 / $ ) & $ ( 4 $ ) = $ ;-< 5C4 ;$ $ < . 3 = - = 4 ) = P / -

$

3

6 $ 4D H = $ $4 .

) T C .0 2 CE

= 3 $ &J * . 4 = ,&T ) CE

$ 5C &J * =

,, (@ - 6 ,6 = -

) CE

CE &J *4 CE

&J * *J 6 CE

1

6J

1 Provisional for FY 2004-05 and revised estimates for FY 2005-06 as submitted by JSEB in tariff petition for FY 2006-07.

T E R I Report No. 2006RP23

279 Analysis and compilation of tariff orders

Table 5.15 JSEB's Own Generation (Gross generation in MU)

Station Proposed Patratu Thermal Power Station Sikidiri Hydel Power Station Total

SOURCE

FY 2003-04 Approved 1189 116 1305 Actual* 1067 129 1197 1252 86 1338

FY 2004-05 Actual* 743 142 885

FY 2005-06 Actual** 846 51 897

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

=

=

= -

Plant Load Factor (PLF) of PTPS

CE T CE J *J 6 4 / CE 6J $ 5C = &J *4 $$ . ) = = $ 5C *T

,,T

,&T

CE

Table 5.16 PLF of PTPS over the years

FY 2003-04 Proposed PLF

SOURCE

FY 2004-05 Actual* 15.8% Actual* 11%

FY 2005-06 Actual** 12.5%

24%

Approved 27%

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

Station Heat Rate (SHR) of PTPS

- 6, = . 2 = ) $$ . / 0 = $$ = . CE CE CE &J * . 2 = &J * J &

=

Table 5.17 SHR of PTPS over the years

FY 2003-04 Proposed SHR (Kcal/kwh)

SOURCE

FY 2004-05 Actual* 4315 4306

FY 2005-06 Actual** 4230

Actual*

4269

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

= =

. 2

- 6, $$ = .

-

T E R I Report No. 2006RP23

280 Analysis and compilation of tariff orders = P = /

)

Auxiliary consumption of PTPS

CE &J *4 > / . ,+T = &+ (@ 3 G ) 3 ,&T - 6 ,+ $$ = .

Table 5.18 Auxiliary consumption for PTPS over the years

FY 2003-04 Proposed Auxiliary consumption

SOURCE

/

3 -

= 4 / L 3 =

=

FY 2004-05 Actual* 16.3% Actual* 19.8%

FY 2005-06 Actual** 16.6%

Approved 13.0%

18.0%

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

= = 4 3

4 4 -

- $$ = . > / . =

=

Fuel Cost for Power Generation

- 6 ,9 CE T - > / = . = 6J = CE &J *

(Rs. Crore)

FY 2004-05 Actual* 79.6 63.4 143 893 1.60 Actual* 60.4 48.1 109 596 1.82 FY 2005-06 Actual** 78.3 50.0 128 706 1.82

;

=

= <

-

*

Table 5.19 Fuel Cost incurred by JSEB over the years

FY 2003-04 Proposed Coal Cost (Rs.Crore) Oil Cost (Rs.Crore) Total fuel cost (Rs.Crore) Net Generation (MU) Fuel cost (Rs./Kwh)

SOURCE

Approved NA NA 126 1016 1.24

NA NA 143 1014 1.42

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

T E R I Report No. 2006RP23

281 Analysis and compilation of tariff orders

Power Purchase Cost

C CE 6& &J * ; 6J ; = = 0J <4 CE < *J 6 ; = I < CE

, T 3 $ 5C4 3 -

CE

6J

7000 6000 5000 4000 3000 2000 1000 0 1132 FY 2003-04 Approved 1022 FY 2003-04 Provisional 737 FY 2004-05 Provisional Pow er purchsed 756 FY 2005-06 Rev Est 3627 3723 4693 5689

Ow n Genration

Figure 5.3 Break up of the total energy requirement (MU) for the FY 2003-04, FY 2004-05 and FY 2005-06

SOURCE

Tariff order FY 2003-04 and as reported by JSEB in the Tariff petition for FY

2006-07

- 6 = I < = 4 % F 5 !F )4 = ; T = J A/. / -

Table 5.20 Source wise power purchase costing and per unit cost for the FY 2003-04, FY 2004-05 and FY 2005-06

Plant Chukha Talcher TVNL Farakka Rangit Kahalgaon DVC MU 19 264 1603 186 2 136 1407 FY 2003-04* Rs. Crore Rs/Kwh 2 45 269 36 1 31 367 0.93 1.67 1.68 1.87 2.11 2.23 2.61 MU 14 250 1132 231 2 155 1876 FY 2003-04** Rs. Crore Rs/Kwh 2 35 189 44 1 36 486 1.29 1.41 1.67 1.9 3.11 2.29 2.59 MU 53 315 1093 376 20 332 2323 FY 2004-05** Rs. Crore Rs/Kwh 8 39 194 66 7 66 599 1.53 1.3 1.77 1.82 3.6 2.07 2.58 MU 158 397 1309 704 43 533 2511 FY 2005-06*** Rs. Crore Rs/Kwh 24 49 241 116 13 92 710 1.58 1.28 1.84 1.71 3.01 1.78 2.83

T E R I Report No. 2006RP23

282 Analysis and compilation of tariff orders

Plant WBSEB PTC&NVVN Total

SOURCE

MU 0 0 3629

FY 2003-04* Rs. Crore Rs/Kwh 0 0 751 0 0 2.07

MU 27 36 3723

FY 2003-04** Rs. Crore Rs/Kwh 11 8 812 4.08 2.2 2.26

MU 29 152 4693

FY 2004-05** Rs. Crore Rs/Kwh 12 32 1023 4.28 2.17 2.18

MU 34 0 5689

FY 2005-06*** Rs. Crore Rs/Kwh 14 0 1259 4.23 0 2.21

* Approved; ** Provisional; *** Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

- 6 , = I 6 T / 4 = =

Table 5.21 Cost of power purchase as a % of ARR

Description Power Purchase (Rs. Crore) ARR (Rs. Crore) Power purchase as a % of ARR (%)

SOURCE

FY 2003-04 Approved 758 1334 57%

FY 2003-04 Actual* 908 1629 56%

FY 2004-05 Actual* 1023 2043 50%

FY 2005-06 Actual** 1259 2334 54%

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

Operating expenses

Employee cost

- 6 *J 6 ) = = ) = = / *+ ) = CE = 6J 4 &9 CE CE CE 6J &J * = = 4 - && &&T > / C . 4 CE *J 6 &J *4 CE

Table 5.22 Employee costs for FY 2003-04, FY 2004-05, and FY 2005-06

Description Net employee cost (Rs. Crore)

SOURCE

FY 2003-04 Proposed 237.3 Approved 167.0 Actual* 140.4

FY 2004-05 Actual* 208.4

FY 2005-06 Actual** 202.7

*Provisional; **Revised estimate Tariff petition filed by JSEB for FY 2006-07.

T E R I Report No. 2006RP23

283 Analysis and compilation of tariff orders

Employee Productivity

- 6 & = = =

Table 5.23 Employee cost per unit of ARR over the years

Year Employee Cost (Rs Crore) ARR Employee (Rs Crore) Costs/ARR

=

FY 2003-04 (Approved) 168 1334 12.59% FY 2003-04 (Actual) 140 1629 8.59% FY 2004-05 (Actual*) 208 2043 10.18% FY 2005-06 (Actual**) 203 2334 8.70% *Provisional; ** Revised estimate S O U R C E Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

- 6 * =

=

Table 5.24 Employee cost per unit of sales over the years

Year FY 2003-04 (Approved) FY 2004-05 (Provisional) Employee cost per unit of sales (Paise/unit) 68.5 72.7

FY 2005-06 (Revised Est.) 59.4 S O U R C E Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

- 6 6 = = - 6 6

(@ 4 = 4

T E R I Report No. 2006RP23

284 Analysis and compilation of tariff orders

Table 5.25 Trends in number of employees per thousand consumers and per unit of sale over the years

Year FY 2003-04 Approved FY 2004-05 Provisional FY 2005-06 Revised Est. 2006-07

SOURCE

Employees (Nos.) 7359 7268 7028

Sales (MU) 2469 2862 3418

Consumer (Nos.) NA 957794 1091525

Employees/ 1000 consumers (Nos.) N.A. 7.59 6.44

Employees/MU of sale (Nos.) 2.98 2.54 2.06

Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY

= = =

= =

-

Table 5.26 Revenue per employee for FY 2003-04, FY 2004-05 and FY 2005-06

Year FY 2003-04 (Approved) FY 2004-05 (Provisional) FY 2005-06 (Revised Est.)

SOURCE

Employees (Nos.) 7359 7268 7028

Revenue (Rs Crore) 966 999 1111

Revenue per Employee (Rs/employee) 1312678 1374518 1580820

Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07

Repair and Maintenance Expenses

- 6 = &J *4 G 3 ( ) G 3 ( <4 CE ) / = L A > / . I *J 6 = CE CE &J * ; 6J CE , T = = 4

4

= G 3 ( 4 *J 6

CE 4

*+ 6 ) CE 6J CE &J * CE / % 4 -

- > / . &J * 9 ) 2 = 4 6J

= = = CE

= 4 G 3 ( - &+T = G ( 0

=

T E R I Report No. 2006RP23

285 Analysis and compilation of tariff orders A G ! G ( 4 > / . G ! = = 3

= =

= 4 J > / .

Table 5.27 R&M expenses for FY 2003-04 (proposed, approved and actual), FY 2004-05 and FY 2005-06 (Rs. Crore)

FY 2003-04 Description R&M expenses (Rs. Crore) Proposed 48.57 Approved 48.57 Actual* 29.66 FY 2004-05 FY 2005-06 Actual* 37.03 Actual** 50.84

*Provisional; **Revised estimate Source: Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

C

6* D C3 G 3 ( = -

G 3 ( = D C =

- = 4

60 50 40 Rs. Cr. 30 20 10 0 FY 04-05 Provisional R&M Cost 37 2.31%

2.86%

3.50% 3.00% 2.50%

51

2.00% 1.50% 1.00% 0.50% 0.00%

FY 05-06 Revised Est. R&M cost as % of GFA

Figure 5.4 R&M expenses (Rs Crore) for the FY 2004-05 and FY 2005-06

2006-07

SOURCE

Tariff order FY 2003-04 and as reported by JSEB in the Tariff petition for FY

Administration and General Expenses

- 6 + = &J *4 0 G 3 D <4 CE > / . *J 6 G 3 D &T = G 3 D CE CE = 0 G &J * ; 4 6J CE & ) 4

T E R I Report No. 2006RP23

286 Analysis and compilation of tariff orders 3 = & = 3 ) CE 4 2 ) = 4 ) CE &J * = 2 &J * = G 3 D = = = 4 CE &J * G D ,9,T =

CE 6J 4 G 3 D 6 6T = CE *J 6 4 4 & 9* ) CE 6J N 4 4 ,, + ) CE 6J

, 9) 3 , )

CE = CE

0 *J 6 *J 6

Table 5.28 A&G expenses for the FY 2003-04 (proposed, approved and actual), FY 2004-05 and FY 2005-06

Description A&G expenses (Rs. Crore)

SOURCE

FY 2003-04 Proposed 36.66 Approved 30.27 Actual* 21.80

FY 2004-05 Actual* 29.20

FY 2005-06 Actual** 45.70

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 200607

C

66

G 3 D CE = 4 *J 6 = G 3 D

- I

2.5% 2.0% 1.5% 1.0% 0.5% 0.0% FY 2003-04 Approved A&G Cost as % of ARR FY 2004-05 Provisional FY 2005-06 Revised Est. 2.3% 1.4% 2.0% 13.4 11.1 10.1

16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

A&G Cost per unit of sale (Paise/Unit)

Figure 5.5 A&G expenses as percentage of ARR and per unit of sale for FY 2003-04, FY 2004-05 and FY 2005-06

SOURCE

Tariff order for FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07

Total Operating expenditure (Employee cost, R&M and A&G expense)

% 4 ) 4 (

T E R I Report No. 2006RP23

287 Analysis and compilation of tariff orders 3 = 3 D = = 3 HG ( - 6 9

Table 5.29 Operating expenditure over the years

Years FY 2003-04 Approved FY 2003-04 Provisional FY 2004-05 Provisional FY 2005-06 Revised Est.

SOURCE

Total Operating expenditure (Rs Crore.) 247.87 191.86 288.47 313.74

Per unit of sale (Paise/unit) 100.39 77.71 100.79 91.79

As a % of ARR 18.58% 11.86% 14.21% 13.53%

Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for

FY 2006-07.

) D

=

4

HG ( = 3 ) D =

9T

6,T

,+T

Sources of Funds and Capital Expenditure

CE ) D= ,& ) - 6& &J *4 3 * +) 0J / 0 3 , *6 &, ) = 4

Table 5.30 Break-up of capital expenditure for FY 2003-04

Description Generation Transmission Distribution APDRP Rural Electrification Kutir Jyoti PMGY MNP Total

SOURCE

FY 2003-04 (Rs. Crore) Proposed 152 150 358 187 129 3 44 22 1045

Tariff order for FY 2003-04

A )

3 0 -

/ =

4

T E R I Report No. 2006RP23

288 Analysis and compilation of tariff orders / 3 L /. / 3 = = 3 = 3 CE CE J 4 *J 6 CE 6J - > / . 4 ) 0 = $$ F 5 = $$ . > / . = = > / . = 4 ) / 4 ) J -

Table 5.31 Break-up of capital expenditure for FY 2004-05 and FY 2005-06

FY 2004-05 Rs. Crore Actual* 78 168 127.13 205 305.54 883.67 3.74 4.7 8.44 892.11 FY 2005-06 Rs. Crore Actual* 183 82.5 83.99 187.45 90 626.94 10.19 0 10.19 637.13

Description Plan Generation Transmission Distribution APDRP Rural Electrification Sub- Total Non-Plan Other Capital Ex. Other Civil Works Sub- Total Total *Revised estimate

SOURCE

Annual financial statement for FY 2005-06 and FY 2006-07

Status of APDRP Schemes

- 6& L $ $ ! 3 . 0 -

T E R I Report No. 2006RP23

289 Analysis and compilation of tariff orders

Table 5.32 APDRP Investment status as on 30th June 2006

Project outlay No. Of projects Revised APDRP component (Rs. Crore) Grant Loan Total 105.91 76.94 182.85 Releases (including FY 2006-07) (Rs. Crore) 167.34 Utilisation % 39.54

423.65

SOURCE

8

http://www.apdrp.com/apdrp/projects/pdf/Investment_Component.pdf, accessed

during December 2006

Status of PFC lending

> - 6 && 0 $ C)

Table 5.33 Status of PFC lending

Description DVC JSEB TVNL

SOURCE

Total sanctions Total disbursements (Rs Crore) (Rs Crore) 1.97 223.42 1892 66.04 -

Power Line, Volume 11, No. 2, October 2006

Interest and Finance Charges

CE ; ,&T /. / ) I ) 3 /. / C 4 CE &J *4 0 - > / . = ) CE 4 = 4 3 /. / 0 = 4 = &J *4 / < ,6+ ) = 6T / 0 -

-

<

,J ; ,&T

Table 5.34 Loans given by the State Government for FY 2001-02 and FY 2002-03

FY 2001-02 (Rs. Crore) Generation Transmission Distribution Building MNP APDRP loan Total loans

SOURCE

FY 2002-03 (Rs. Crore) 0 61 25 0 34 6 126

20 40 25 2 0 0 87

Tariff order FY 2003-04

T E R I Report No. 2006RP23

290 Analysis and compilation of tariff orders ) 0 - 6T 6T 4 = 9) = ,&T CE &J *

= CE =

= J 4 > / .

-

6 &6

Table 5.35 Interest cost over the years

Description Generation Transmission Distribution Building MNP Loan from PFC (APDRP) Power purchase APDRP CPA Total - Interest on commercial loans State Gover. Loan Total FY 2003-04 FY 2004-05 FY 2005-06 Actual* Actual* Actual** 3.1 3.1 4.52 14.29 15.66 24.75 45.4 137.8 205.71 0.31 0.31 0.31 4.42 8.32 16.37 0 18.75 0.78 14.77 101.82 202.94 304.76 3.76 34.57 3.38 14.77 221.67 202.94 424.61 5.81 44.14 6.74 14.77 323.12 202.94 526.06

* Provisional; **Revised estimate

SOURCE

Tariff petition filed by JSEB for FY 2006-07

- ( $

;

-

> /4 . ;( $ D = <4 ++ ) ; &&T < / ( $ P . ) > / &&T . 6T 0 9*< / - 6 &6 . )

&&T -

/. /

Depreciation

) )

- 5.& CE &J *4 = &J * = = = / J

> / = . & CE CE 69 69 ) ,J 4

T E R I Report No. 2006RP23

291 Analysis and compilation of tariff orders 4 ) "J C3 = = ) ( $ CE CE +6 6* ) 6 &*T J 4 *J 6 / CE = = CE ,J CE &J *

J J @ J

/. / -

> / . /

6J

& 6 ,,T

)

Table 5.36 Depreciation amount over the years

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE

Proposed Approved Actual* Actual* Actual**

Depreciation (Rs Crore) 73.00 59.59 68.57 73.62 85.54

*Provisional; **Revised estimate Tariff order FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07.

Provision for Bad and Doubtful Debts

CE , T ) I &J *4 > / . D= 4 4 0 4 > / . = 4 = /. / / / ,+ ) -

C - 0 =

4 = = CE 6J )

=

= 0 -

4 *J 6

CE &J * > / . CE &J *4 CE = -

T E R I Report No. 2006RP23

292 Analysis and compilation of tariff orders

Rate of Return

CE ,& + ) - 0 . ) = /. / C = $ 5C ) / = / CE 6T , T &J *4 0 = 6T / 4 = , *) = ) L - = ) / ; = , T< G ! = = 4 3 L G ! 3 CE &J * / / = 4 * ,9*+ 0 > / . = ) &J *4 / &T / . 69

CE . > / . ,9*+ - D= &T

J

4 -

/ -

I > 0

Contingency reserve

CE = . C F 5 3 = $$ . = = $$ ,, ) /. / > /4 . "J &J *4 ) =

A /

= =

4 =

) 3

T E R I Report No. 2006RP23

293 Analysis and compilation of tariff orders = ) = 4 ) 0 = =

Annual Revenue Requirement (ARR)

; ; - 6& = < 3 - I - 0J <4 CE = = = *J 6 ; 3 < CE &J * CE 6J CE &J * 3

Table 5.37 ARR (Approved and Provisional) for the FY 2003-04, FY 2004-05 and FY 2005-06 (Rs. Crore)

Description Power Purchase Generation Cost Repairs & Maintenance Employees Cost Administration & General Expenses Depreciation Interest and Finance Charges Bad Debts Provision Interest on working capital Total Expenditure Statutory Return Temporary Contingency Reserve Gross Revenue Requirement Non-tariff income Net revenue requirement *Provisional, **Revised estimate

SOURCE

FY 2003-04 Approved 758 126 49 167 30 60 28 6 1224 0 110 1617.82 11.63 0 Actual* 908.07 148.84 29.66 140.4 21.8 68.57 300.48 0

FY 2004-05 Actual* 1149.85 114.51 37.03 208.41 27.03 73.62 419.86 0 0 2030.31 12.37 0

FY 2005-06 Actual** 1281.2 134.45 50.84 202.74 43.36 85.54 520.92 0 0 2319.05 14.59 0

1334.00 336.041 997.96

1629.45 51.47 1577.98

2042.68 62.03 1980.65

2333.64 54.96 2278.68

Tariff petition for FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07.

1 Major contribution to the same is on account of Delayed Payment Surcharge which was approximately Rs. 303.57 Crore as approved by the Commission

T E R I Report No. 2006RP23

294 Analysis and compilation of tariff orders - 6 &+ = < CE CE = / &J * 6J 4

; ;

<4 CE = -

*J 6 ;

<

Table 5.38 ARR per unit of sales for the FY 2003-04 (approved and actual) FY 2004-05 and FY 2005-06

Description ARR (Rs Crore) Sale (MU) ARR / Unit of sales (Rs/Unit)

SOURCE

FY 2003-04 Approved Actual* 1334 1629 2730 2470 4.89 6.60

FY 2004-05 Actual* 2043 2862 7.14

FY 2005-06 Actual** 2334 3418 6.83

*Provisional, **Revised estimate

Tariff petition for FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07.

Tariff Rate Balancing Tariff Rationalization

/ J ) ) ) 45 4 / 4 / CE &J *4 = = 0 ) J 3 L

- = 4 =

) I

G ) !

3 G ! 4 4

40 = ) 4 0 L =L = -% J 0 3 =L ; H!< = = J

T E R I Report No. 2006RP23

295 Analysis and compilation of tariff orders - = 4 &J * 2 4 ,+T = 4 = J J L CE

/ =

New initiatives in tariff design

) = &,T4 , T ,* T = ) ,+T 2 = = 2 = 4 = / = 4 CE &J *

- = 4 % CE &J *

40 = 0 ( ). ;) J . = = ) , 3 2$ ) 2 ) H! J =L 0 < . = 5 . J -

= G ! < ). J 5 . ;5 J

L

5 . - 3 42 . ;2 , 2$ - = = =L 2 . 42 . J J =L J 0 0

. = -

<J

2 . J

0 4

. = 4 3 4 0

;

<

=

-

=

/ =

- =

4 L

)

T E R I Report No. 2006RP23

296 Analysis and compilation of tariff orders

Category wise average realization

- 6 &9 ; 3 6J ; = = = 45 .2 . 4 = H - = CE 6J 4 45 - > / . = CE L *J 6 = = <4 CE < L *J 6 ; - = 4 4 CE = CE 4 < &J * CE &J *4

4 4 2

-

=

-

Table 5.39 Category-wise average realization over the years

Category Domestic Street light Commercial Irrigation LT HT Railway Traction Total FY 2003-04 Existing* 1.10 0.64 4.82 0.35 5.19 16.05 4.96 3.54 Approved Actual** 1.49 1.03 4.52 0.58 5.09 3.98 4.69 3.54 1.03 0.90 4.16 0.40 4.19 4.72 5.04 3.76 FY 2004-051 Actual*** 1.21 0.50 4.15 0.42 4.26 4.55 5.07 3.49 FY 2005-06 Actual**** 1.25 0.96 3.67 1.14 6.08 4.02 4.67 3.25

* At the tariff prevailing prior to issuance of tariff order for FY 2003-04 ** As per the annual statement of accounts for FY 2003-04 *** Provisional; **** Revised estimates

SOURCE

Tariff petition for FY 2003-04 and as reported by JSEB in the tariff petition for FY

2006-07

Cross Subsidy

CE = 2 = 4 % 4 ,+T J CE

1

&J * -

) = =

L

)

4

L )

= L L - 6* = L 4

= &J *

= = 4 -

-

/ / =

0 =

T E R I Report No. 2006RP23

297 Analysis and compilation of tariff orders

CE 5 . = =

&J *4

/ = T

= = =

Table 5.40 Average realization as percentage of average cost for FY 2003-04

Category Domestic Street light Commercial Agriculture LT HT Railway Traction Total

SOURCE

FY 2003-04 Approved 30% 21% 92% 12% 104% 81% 96% 72%

Tariff petition for FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

C / 2

- I = = 4 / / =

4 =

=

= =

Table 5.41 Actual recovery as a percentage of average cost over the years

FY 2004-05 Actual* Domestic Street light Commercial Agriculture LT Industry HT Industry Railway Traction Total

SOURCE

FY 2005-06 Actual* 18% 14% 54% 17% 89% 59% 68% 48%

17% 7% 58% 6% 60% 64% 71% 49% Tariff petition filed by JSEB for FY 2006-07

*Provisional; **Revised estimates

Convergence Index

= = JOJ= ) ,+T

T E R I Report No. 2006RP23

= = ) = )

L 3 < ;) &J * J CE - 3 - 6* = = - = 4 &J * $

= CE

CE &J *

298 Analysis and compilation of tariff orders CE &J *4 =

Table 5.42 Convergence index for FY 2003-04

Description CI at existing tariffs CI at revised tariffs CI 0.48 0.39

-

=

> / .

Percentage improvement 0.18 S O U R C E Tariff order for FY 2003-04

Subsidy Support from Government

CE / ) - 6 *&

Table 5.43 Energy cost of JSEB for FY 2003-04

Description Power purchase cost (Rs. Crore) Generation cost (Rs. Crore) Total Energy cost (Rs. Crore) Energy Input (MU) Energy cost per unit (Rs. per unit)

SOURCE

&J *4 =

) ,+ 0A

L

759.09 126.06 885.15 4761 1.86

Tariff order for FY 2003-04

2

= 4 D=

4 0 4 D= 4

)

I = = =

C , ** ) N =

? -

> = / -

= > ,+ 0A 4 2 = 4 = N 4 = + ) 4 D= 6+ ) L . D= ? - 5.** =

/

T E R I Report No. 2006RP23

299 Analysis and compilation of tariff orders

Table 5.44 Total subsidy required from Government for FY 2003-04

Category Domestic (Rural Unmetered) Domestic (Urban Metered) Commercial (Rural Unmetered) Irrigation and Agriculture Street Light Total

SOURCE

Subsidy (Rs Crore) 11.55 18.57 0.68 6.14 3.06 40.00

Tariff order for FY 2003-04

C

6 Street Light 8% Irrigation and Agriculture 15% Commercial (Rural Unmetered) 2%

J D= CE &J *

-

0J

Domestic (Rural Unmetered) 29%

Domestic (Urban Metered) 46%

Figure 5.6 Category-wise percentage break-up of the subsidy from the Government for FY 2003-04

SOURCE

Tariff order FY 2003-04

Treatment of Revenue Gap

- 5.*6 ; = < - = = = = = = ) CE / *J 6 = CE CE &J * C 6J 4 J = CE = &J *

Table 5.45 Revenue gap for the FY 2003-04(approved and actual), FY 2004-05 (actual) and FY 2005-06 (actual)

FY 2003-04 Description ARR Revenue from existing tariff* Subsidy by GOJ Sub Total Approved 1334.11 966.29 0.00 966.29 Actual** 1577.98 917.41 0.00 917.41 FY 2004-05 Actual** 1980.64 999.29 0.00 999.29 FY 2005-06 Actual*** 2278.68 1110.88 393.48 1504.36

T E R I Report No. 2006RP23

300 Analysis and compilation of tariff orders

Misc. Receipts Revenue Gap Regulatory Asset Net Revenue Gap 336.04 31.78 0.00 31.78 0.00 660.57 202.94 457.63 0.00 981.35 202.94 778.41 0.00 774.33 202.94 571.39

Revenue gap as % of ARR 2.38% 29.00% 39.30% 25.08% * Incl. UI Receivables; **Provisional; *** Revised estimates S O U R C E Tariff order for FY 2003-04 and as reported by JSEB in the tariff petition for FY 2006-07

Governance Public Participation

0 = ) 0 4 CE -% &J *4 -% 4I 4 -% 4 4 4 4 4 3 4 4 ) ) = , * = > /4 . = = -

) = ) -

> " /

?

0 H @ = = 4 = = =

= = 0 -

) )

1

-

-

Timeliness of Tariff Orders

> / . CE ) J / &J * & 2 I = 4 =

1

Under this series an interesting case came into light wherein a village under Ranchi zone filed a petition before the Commission against the Board for being denied connection, despite filling the application as per the rules and paying the requisite amount. In response to the same, electrification work has started in the village.

T E R I Report No. 2006RP23

301 Analysis and compilation of tariff orders / &4 ! C 4 ) CE = ) & / *J 6 - &, ( / * CE = B J * = -

> / .

Consumer Advocacy and Redressal mechanism

> ) . D = H = = 6 I 0 4 ) / 0 4 ) , . . )H > / . H / > -% = C

4

Anti-theft measures

A -% - 0 ;! D < D= = = 4 ! 2 = 4 = 3 D -

Regulatory Initiatives

Implementation of Multi-year tariff framework

) (E C = J @ C ) ) J 4 = 0 J ( % "J = 4% N . D= 4 4 3 0 4 4 0 4

H )

T E R I Report No. 2006RP23

302 Analysis and compilation of tariff orders ) ) H 3 4 0 "J

C = . %

4 % ( C

-

&

Open Access

) J. = Table 5.46 Phasing of Open access

Phases Condition Date from which Open Access shall be allowed to open access customer 1-Nov-05 1-Apr-06

H ! 4H + 6

Phase I Phase I Phase II

SOURCE

25 MW and more 10 MW or more

2005

1 MW or more 1-Apr-08 JSERC (Open Access in Intra-State Transmission and Distribution) Regulations,

) 3

$ 4 - I

= , (F =

4) . )H / 2 = 4

= -

Appeals against orders

> ) . , > ) . ))5 L T E R I Report No. 2006RP23

) !5C $ %

) 5

5 ; - !5C $ -

;))5< < 5

-

303 Analysis and compilation of tariff orders A % 4 A A 3 A ) &^ 4 & % 3 = N &4 3 $ $ % - .) = %

T E R I Report No. 2006RP23

) 3 3 = ) ^ =

=

^ ) $ $ ^ A = ^ . ^ 4 = ,,,

-

)

"J

4 4 $ C $ )

-

3

= ) = = - = - 4 -

-

=

304 Analysis and compilation of tariff orders 4

,, (

Studies undertaken

/ ) 0 4) 0 = CE - / AB 6 4 &J *4 = =

Status of annual account

L J & > / . = CE

Staffing

> ) . N J J )

1

4 I .

-

0 = > ) .

4 -

Status of directives issued by JSERC

- 6* J

Table 5.47 Status of directives issued by JSERC in FY 2003-04

Summary of Directive Sales estimates and projections for load research and demand forecast and to estimate circle wise consumption by different categories including unmetered category and various categories of consumers Status based on JSEB's reply The Board has made no progress on the same and submitted that it shall wise actual energy consumption for various years and has provided information on circle level category of consumption, feeder wise no of hours of supply, No of hours of supply to HT& 33KV consumers. However, hours of supply to various categories of consume

L CE /

= &J *

= -

- > ) . CE

JSEB was directed to undertake a detailed study undertake the study after the unbundling. It has submitted the category

furnish circle-wise number of hours of supply to the Board stated that it does not have the system to segregate no. of

1

$

T E R I Report No. 2006RP23

305 Analysis and compilation of tariff orders

Summary of Directive T&D loss estimate and unmetered consumption The Board was directed to formulate a task force The JSEB has submitted that it would like to set up a special committee at for supervising the T&D loss in the state, which shall report to the Commission quarterly about the loss levels. No information / results have been submitted to the Commission. JSEB In addition, the Board should undertake a proper has just submitted that the process is ongoing. energy audit of its system and provide a voltage­wise break-up of technical and commercial losses in the next petition. The Commission further directed the Board to undertake a study to estimate category wise unmetered consumption and provide the results in the next petition. Performance of PTPS substation The Board was directed to undertake necessary JSEB has submitted that it has signed an agreement with NTPC on 30th steps to reduce SHR and increase the PLF to its August 2005 under partners in Excellence Program of Ministry of Power, optimal level and to separately account the consumption in the nearby areas of PTPS and estimate auxiliary consumption net of this level. The Commission further directed the Board to step up its supervision to reduce this loss. No action till date has been initiated to develop the fuel management The Board was also to submit an action plan system to improve the efficiency of plant. Evacuating 100% power from TVNL station The Board was directed to undertake necessary capital and R&M expenditure to augment its transmission capacity for evacuating 100% power from TVNL station, and an action plan in this regard should be submitted to the Commission within one month from the date of issue order for FY 2003-04. Quality of supply and service The JSEB was directed to prepare and submit to As reported by the JSEB, it has already submitted the requisite the Commission a proposal on a set of standards of performance along with penalties for non-adherence to these. The petition was information. The progress of the Board has been slow on this front too. It has submitted that it is planning construct the following lines: 400 KV double circuit TTPS Ranchi line Construction of 220KV TTPS Haldia (Ranchi) double ckt transmission line Const. Of 220kv double ckt TTPS Govindpur transmission line system. The Board has submitted that it intends to appoint consultants for with in three months for proper fuel management the same. GOI. Under this programme, NTPC has deputed its seven engineers for two years to improve the performance of PTPS, especially (a) improvement of PLF, (b) reduction in specific consumption of Oil, (c) ash disposal. No progress has been made till date. The Board has submitted that it has initiated the process to appoint the consultant to study the un-metered consumption in certain divisions of Jharkhand. various locations in its area of operations for T&D loss reduction. Anti power theft cell has been formed under superintending engineer / Status based on JSEB's reply

the efforts that have been undertaken to reduce executive engineer.

T E R I Report No. 2006RP23

306 Analysis and compilation of tariff orders

Summary of Directive also to include the condition for minimum hours of supply that the Board has to supply. Status based on JSEB's reply

Non-Conventional Energy The Board was directed to submit in three electrification through promotion of nonconventional form of electricity. It was also directed to coordinate with JREDA (Jharkhand regard for successful implementation of various initiatives. Next Tariff petition and auditing of accounts The Commission directed the Board to come up with a new petition for FY 2004-05 removing the The Board has not complied with the directive and the final audited various data deficiencies highlighted throughout accounts are still awaited. the tariff order. It also directed the Board to audit the books of accounts for FY 2001-02 and FY 2002-03 and submit the same to the Commission by March 2004.

SOURCE

The Board's progress in this regard has been slack. It has submitted that it strategy for rural electrification through promotion of Non-conventional sources of energy and has also sent a list of villages/tolas, which are remote for grid connectivity. However, the Board has planned no detailed

months their plan of action and strategy for rural has written a letter to JREDA requesting to prepare a plan of action and

Renewable Energy Development Agency) in this strategy/approach.

Tariff petition by JSEB for FY 2006-07

Regulation notified by JSERC

D = - 6 *+

Table:5.48 Regulation and guidelines issued by the Commission

S.No. 1 2 3 4 5 6 JSERC Regulation JSERC (Conduct of Business Regulations) Order 2003 JSERC (Miscellaneous Order) 2003 JSERC (State Advisory Committee) Regulations 2003 JSERC (Terms and Conditions for Determination of Thermal Generation Tariff) Regulations, 2004 JSERC (Terms and Conditions for Distribution Tariff) Regulations, 2004 JSERC (Guidelines for Establishment of Forum for Redressal of Grievances of the Consumers and Electricity Ombudsman) Regulation, 2005 JSERC (Open Access in Intra-State Transmission and Distribution) Regulations, 2005 10th Date July 2003

-

)

18th August 2003 29th October 2003 11th August 2004 21st September 2004 6th April 2005

7

28th June 2005

T E R I Report No. 2006RP23

307 Analysis and compilation of tariff orders

S.No. 8 9 JSERC Regulation JSERC (Distribution License Conditions) Regulations, 2005 JSERC (Electricity Supply Code), Regulations, 2005 Date 5th July 2005 28th July 2005 17th August 2005 10th February 2004 -

10 JSERC (Distribution Licensees' Standards of Performance), Regulations, 2005. 11 JSERC (Delegation of financial powers) regulation, 2004 12. Draft (Terms and conditions of tariff determination, Multi-year tariff framework) Regulation, 2006

SOURCE

www.jserc.org assessed during December 2006

Power sector rating

( 6J

Table 5.49 Power sector rating

FY 2004-05 Rank Score

SOURCE

$ CE

=

4D 4> 0 *J 6 CE

FY 2005-06 24 4

29 3

http://powermin.nic.in/whats_new/SEB/index.htm, accessed during December

2006.

> * CE

0 6J

= 0 0

= "

9

' J < ;

@ *J 64 5 D F K = H = 6J D= -

J

- > /B . > 0 = &

(.=

L 4 = 4

T E R I Report No. 2006RP23

308 Analysis and compilation of tariff orders

Conclusion

3 = 4 ) CE &J *4 G = = = = > / . = / = - > / . = = CE . CE 6J < = &J * 4$ 5C = 4 4 = I = = 5 = 4 4 9 T = G ) = % = ;& T / 3 = = ./ 4 =

4

3 .

T E R I Report No. 2006RP23

309 Analysis and compilation of tariff orders

CHAPTER

6 Kerala

? ;,< ,* = . ?. ) ) ) ) ?. ) ;,< &; ) < ; ) ; , <4 ,99+ 3 )

Introduction

&< 3 + ) / ) 6J ?. / D= = CE J = L 3 ;?. /< CE

>

&4

? &J * C ?. / CE

. 4 *J 64 CE

N

0 0

) > 0

4

Demand Supply Gap

$ ,J , = CE 6J ? 0 0 CE

Table 6.1 Energy availability / requirement Surplus/Deficit

Year FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 Energy % -7.4 -6.9 -3.8 -1.2 Peak % -16.90 -16.30 -9.80 -1.3

FY 2005-06 -0.5 -0.8 S O U R C E Monthly review of power sector (executive summary), Central Electricity Authority, www.cea.nic.in , Accessed on June 9, 2006

-

J

3

=

T E R I Report No. 2006RP23

310 Analysis and compilation of tariff orders

Table 6.2 Hydro-thermal mix in the state (Actual)

Year Hydel (MU) Thermal (MU) Total (MU) Hydel (%) Thermal (%) 6193 5822 6571 6682 5474 5048 7305 7038 6167 6716 4819 3910 6000 1062 2020 2249 2672 3126 4378 3652 4738 6295 6057 7932 8545 6524 7255 7842 8820 9354 8600 9426 10957 11776 12462 12773 12751 12455 12524 12599 85% 74% 75% 71% 64% 54% 67% 60% 49% 53% 38% 31% 48% 51% 15% 26% 25% 29% 36% 46% 33% 40% 51% 47% 62% 69% 52% 49%

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 FY 2003-04 2004-05*

6485 6114 FY 2005-06* *Based on approved figures from tariff orders S O U R C E ARR tariff petition for FY 2005-06

- = 4 I -

= 4 CE

J & = 4

CE =

&J *4 CE *J 6 CE 6J

&J *4 CE = *J 6 64 CE 6J =L =

?. ) 4 4 =

CE

Movement in Installed capacity

C , , & = = CE J

T E R I Report No. 2006RP23

311 Analysis and compilation of tariff orders

MW 3000 2500 2000 1500 1000 500 0 1957 1967 1977 1987 1997 2005 109 193 1012 1477 1509 2617

Figure 6.1 Installed capacity in Kerala over the years

SOURCE

ARR and ERC filing for FY 2006-07

-

=

4 =

4 ) % D

.

Table 6.3 Capacity additions in the state over the years

Additions during the year Generation Capacity Additions (MW) Allocations from CGS (MW) As on 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 2420.7 454.0 180.5 56.0 0.0 285.0 12.6 72.0 3.0 90.0 14.0 225.0 210.0 728.0 Total additions

S OU R C E : ARR tariff petition for FY 2005-06 and FY 2006-07

FY 2002-03 in retrospect

= ,&9 6 ) ?. / &, ( CE &J * & ; *<

Table 6.4 Profit/ (loss) of KSEB for FY 2004-05

Description Income Expenditure Profit

SOURCE

Amount (Rs. Crore) 3722.53 3582.87 139.65

Annual accounts of KSEB for FY 2003-04

Consumption and Access Sales/demand estimation

&J * N 4 = T E R I Report No. 2006RP23

CE =

- ?. / *J 6 = = C = 0 -

= = = = %

CE = =

312 Analysis and compilation of tariff orders % -

) %

CE &J * ?. / 0 = I = I = %

CE

*J 64 -

! = 4 = -

1

CE -

6J

4 ?. / = *J 6 *J 6

% 4

5 2 3

4

*

CE CE

CE ?. / -

&J

C = = J , T

= 4 = , 6T2 5 , 9T 2 = - 6 T

- 2 =

8000 7000 6000 Units(MU) 5000 4000 3000 2000 1000 0 FY 2003-04 LT FY 2004-05 HT EHT Bulk Supply FY 2005-06 1617 1179 196 1682 1190 207 1767 1088 200 5901 6221 6778

SOURCE

Figure 6.2 Trend in sales to LT, HT, EHT and Bulk supply category Tariff orders issued by KSERC (Based on approved figures)

1 As discussed with the KSERC, this has not been taken up actively by the KSEB; there has been no push by the Government to undertake complete computerization in their Departments. 2 The increased is based on the actual sales in 2003-04 and approved sales in 2005-06

T E R I Report No. 2006RP23

313 Analysis and compilation of tariff orders

Category-wise sales

= 6 ) = JOJ=

All figures in MU

FY 2005-06 Actual 4262 783 191 948 183 6366 1238 141 9 339 1727 286 750 44 1079 212 9384 Proposed 4630 835 210 1012 190 6877 1240 144 9 373 1766 267 765 56 1088 200 9852 Approved 4541 873 202 974 188 6778 1241 150 8 368 1767 267 765 56 1088 200 9833

J

Table 6.5 Trends in the sales to various consumer categories

FY 2003-04 Category LT Domestic Industrial Irrigation Commercial Public Lighting Subtotal LT HT Industrial Non Industrial Agricultural Commercial Subtotal HT EHT 66kV 110kV Railways Subtotal EHT Bulk Supply Total

SOURCE

FY 2004-05 Approved 4133 795 196 920 177 6221 1185 137 8 352 1682 291 839 60 1190 207 9300

Proposed 3958 699 199 851 167 5874 1325 90 9 219 1643 313 1007 50 1370 193 9080

Approved Actual Proposed 3935 748 196 863 167 5901 1185 127 8 297 1617 290 839 50 1129 196 8901 4004 751 202 879 166 6002 1125 130 9 304 1568 267 841 46 1154 188 8912 4143 804 223 921 177 6268 1214 132 10 340 1696 270 857 50 1177 203 9344

Tariff orders for various years issued by KSERC and ARR petition filed by KSEB for FY 2006-07.

; -

= 4 2 ! ;CE

- = 4 = 5 <

%

=

, *T * T < = 2 6 4 = 6,, ) = < = = = / = ,,* CE * *& CE 6J &J * 4 CE 2

6J =

0 = = ,,6* (@ ; = <

6J &9 ) ) A 4 % C 4

= , ++ ; & 6 4

4

T E R I Report No. 2006RP23

314 Analysis and compilation of tariff orders

D=

L !"$ # ) = CE 0 = = &J * = = - 0 ! "' $ ) CE 6J CE = ,T

-

) 4 6T CE 6J

= 5 A , T4 , 6T4 *J 6 = CE &J * ?. / =

% &

) I = H ,6 0F 5 = ,

0F ) ?. / 5 = 3 ) 5 = = = ) 2 5 % CE = 4 / / L ; % ? 4 0 <4 L 0 / 4 4 / = CE 04

? , 0F 2 6J )

+T 6J ( " ' # 4 CE ! "' " * *T 2 = F ) ) ' " /

CE &T 6J = % & *T

= 4 &J * CE 6J 2

.= = = = 0 =

T E R I Report No. 2006RP23

(! ) = /

=

) =

315 Analysis and compilation of tariff orders = ) = = 6T 2

)

# ' "" = = 3 0 = 6 T = ) 5 ) , T = 4 = 2 4 5 4 5 0

)

Number of consumers and connected load

,96 + 0 = 6 C = & , 0 -

90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 1.06 1957 3.25 1967 1977 1987 1997 10.27 26.10 49.43

78.00

2005

Figure 6.3 Number of consumers over the years

S O U R C E A R R and ERC filing, 2006-07

) )

J 9T ;C *< - ,*T

T E R I Report No. 2006RP23

316 Analysis and compilation of tariff orders

LT Others 5.31% LT Industrial 1.47% HT & EHT 0.03%

LT Commercial 14.41%

Domestic 78.78%

Figure 6.4 Consumer mix in the state (FY 2004-05)

SOURCE

ARR and ERC filing, 2006-07

CE * +T = J *J 6

Industrial 18% Irrigation 7% Public Lighting 1% Commercial 13%

CE -

*J 6 , &&* (A4 &J * ;99, (A< C 6 0 CE

Others 1%

Domestic 60%

Figure 6.5 Break-up of the connected load (FY 2004-05) S O U R C E ARR and ERC filing, 2006-07

/

= CE = *J 6 -

Table 6.6 Sales and revenue contribution of various consumer categories in FY 2004-05 (based on actual figures)

Category No. of consumers as on 31.03.05 Nos. (in `000) 6143 1124 115 414 2 7799 % of total consumers % 78.7 14.4 1.47 5.32 0.03 100 Consumption MU 4262.3 947.6 782.9 373.50 3018.10 9384.40 % of total consumption % 45.4 10.1 8.3 3.9 32.1 100 Revenue Rs. Crore. 751.6 633.6 324.7 52.2 1155.1 2917.3 % of total revenue % 25.7 21.7 11.1 1.7 39.6 100

Domestic LT Commercial LT Industrial LT Others HT & EHT Total

SOURCE

ARR and ERC filing, 2006-07

T E R I Report No. 2006RP23

317 Analysis and compilation of tariff orders - = 4 9T 4 H &T 42 G 2 &9 T C *6T = 4 4 & T = 6 T

HT & EHT 32.16% Domestic 45.42%

LT Others 3.98%

LT Industrial 8.34%

LT Commercial 10.10%

Figure 6.6 Category-wise consumption pattern in FY 2004-05

SOURCE

ARR and ERC filing, 2006-07 (Based on actual-consumption)

HT & EHT 39.60%

Domestic 25.76%

LT Commercial 21.72%

Figure 6.7 Category-wise revenue LT FY 2004-05 in Industrial

SOURCE

LT Others 1.79%

ARR and ERC filing, 2006-07 (Based on-actual revenue)

11.13%

/ =

- = 4

= -

T E R I Report No. 2006RP23

318 Analysis and compilation of tariff orders

Table 6.7 Average consumption per consumer (based on actuals of FY 2004-05)

Consumer category Domestic LT Commercial LT Industrial LT Others HT & EHT Total

SOURCE:

Average consumption (Units per consumer) 693.8 843.1 6807.8 902.2 1509050.0 1203.4

Teri estimates

C

- = =

= =

= C 4 0 -

, +9 +

4

= = = , & 0A

, & 0A = Table 6.8 Change in connected load per consumer

As on 31st March 2004 Connected load per consumer (kW) 1.04 1.19 36.13 1.81 16.6 251 6250 2888 1.36

H

4

As on 31st March 2005

%Growth in FY 2004-05 over FY 2003-04

Category No. of Consumers 5752116 1037624 2325 399044 108765 191 4 9 7300078 Connected Load (MW) 5964 1233 84 722 1809 48 25 26 9910

Domestic Commercial Public Lighting Irrigation Industrial HT non-industrial Railway traction Bulk Supply Total

SOURCE:

No. of Connected Consumers Load (MW) 6143228 6251 1124711 1318 2325 85 412649 733 116133 1839 217 51 4 25 9 31 7799276 10334

Connected load per consumer No. of (kW) Consumers 1.02 6.8% 1.17 8.4% 36.5 0.0% 1.78 3.4% 15.8 6.8% 235 13.6% 6250 0.0% 3444 0.0% 1.32 6.8%

Connected Load 4.8% 6.9% 1.2% 1.5% 1.7% 6.3% 0.0% 19.2% 4.3%

Tariff orders for various years issued by KSERC and ARR petition filed by KSEB for FY 2006-07

Status of rural electrification

@ ; D F D E< D - ( , 6) = ,* 4? 4A $ 00 %=D F $ = 4? L 0 = 4( 9 ? 4 0 E % 64 ?

? 00 4

T E R I Report No. 2006RP23

319 Analysis and compilation of tariff orders , & D F DE 0 = =

Table 6.9 Rural Household Electrification

Total number Households having of rural Electricity Households 4942550 3238899 % Electrified Households 65.53 Unelectrified Households 1703651 % Unelectrified Households 34.47

S O U R C E : www.powermin.nic.in accessed during May-July 2006 and Kerala Economic Review 2005

-

=

,& *

,

T

Efficiency improvement Approach for fixing the loss reduction targets

C 4 2 = 4 I / / = = 4 ! = ) &< CE ; 3 ) = = = = 3

=

CE 4

&J * . - I 4 3 CE *J 64 ?. ) . = ) &T &J * , = G ! = =

4

Table 6.10 Comparison of proposed, approved and actual T&D losses

FY 2003-04 Proposed 26.50%

SOURCE:

FY 2004-05 Actual 28.46% Proposed KSERC Actual 24.77% 24.45% 26.22%

FY 2005-06 Proposed 22.59% KSERC Actual 21.89% 24.84%

KSERC 27.45%

Tariff orders for various years issued by KSERC and ARR petition filed by KSEB for FY 2006-07

C = -

- =

= = =

) 4 4 =

=

) C =

T E R I Report No. 2006RP23

4

320 Analysis and compilation of tariff orders

CE / / = / ) - = ; G )< G ! = 4

6J

4

) - > = 6 =

CE

J / 0 /

1

4 =

Collection efficiency

&J * 3 D= ! / 9 ,9T ) 4 34 0C ?. / J ,&9+ ) = L B = 0 / - = / 3 ; & > <4 I = ?. / 7 = = D= = = = ?. / ) 0C = / 4 4 4 CE 9 T *J 6 A 4 = / CE

( " * L

! / = 4 ?. / D = H - < J = I ,J ,, J

I = CE

/ 6J ;

-

$

4

Table6.11 Performance of the anti power theft squad

1

In accordance the recommendations made in the meeting (on 12th May 2005) of the consultative committee of members of Parliament for the Ministry of Power

T E R I Report No. 2006RP23

321 Analysis and compilation of tariff orders

Year 2001-02 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 (up to October)

SOURCE

No. of inspections 6215 7888 14354 10287 7795

Amount assessed (Rs. Crore) 5.69 17.48 12.27 40.46 11.75

Amount realised (Rs. Crore) 3.45 3.82 5.24 8.11 4.68

Tariff petition filed by KSEB, FY 2006-07

L =

Metering

?. / 4 = , -

Table 6.12 Replacement of faulty meters

Year FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 (up to October)

SOURCE

Faulty meter replacements (Nos. in lakh) 4.21 8.67 4.35 4.20

Tariff petition filed by KSEB, FY 2006-07

/ 6J ! ! &, ( !

*

0 "

+6 CE

0 J

CE

4

Fuel cost for Power Generation

C = = =

1

+

?. /P I I

1 The generation through hydro sources was low because of reduced inflows during June, July and August 2003 due to failure of monsoon during the period.

T E R I Report No. 2006RP23

322 Analysis and compilation of tariff orders

100% 80% 60% 40% 20% 0% FY 2003-04 FY 2004-05 FY 2005-06 7492 6211 5985 4836 6313 6604

Power purchase

Own generation

Fig 6.8 Share of power purchase and own generation in the total energy requirement

?. /P $ ;/!$ < $ ? L0 0 ,& ?. / =

Table 6.13 Fuel Cost generation from various sources

FY 2003-04 Plant Hydel WindKanjikode BDPP KDPP Total

SOURCE

= L/ ! I 4

! $ $

$ ;?!$ < $

I

-

=

4

Unit MU 4314 2 244 276

Cost Rs. Crore. 13.22 0.41 67.93 71.76

Avg price Rs./uni t 0.03 2.05 2.78 2.60

FY 2004-05

Unit MU 6000 3 143 167 Cost Rs. Crore. 18 0.6 39.63 42.3 100.53

Avg price

FY 2005-06

Unit MU 648 5 3 49 67 660 6 Cost Rs. Crore. 19.46 0.62 16.08 19.7 55.86

Avg price

Rs./unit 0.03 2.00 2.76 2.53 0.16

Rs./unit 0.03 2.07 3.23 2.90 0.08

48361 153.3 0.32 6313 Based on figures approved by the Commission

A ) / % 0

4 CE % % 4 3 = &J *

1 The generation through hydro sources was low because of reduced inflows during June, July and August 2003 due to failure of monsoon during the period.

T E R I Report No. 2006RP23

323 Analysis and compilation of tariff orders = ,* = = 4

Table 6.14 KSEB's own generation (Proposed Vs. Approved)

Units (MU) KSERC 4836 6314 6606 Cost (R. Crore) ARR KSERC 153.3 153.3 149.0 100.5 55.9 55.9 Avg. Price (Rs /unit) KSERC 0.32 0.16 0.085

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

ARR 4836 5978 6606

ARR 0.32 0.25 0.08

Tariff orders for various years issued by KSERC

=

=

4 3

CE -

*J 6

) =

/ CE

= *J

6

CE

6J D

CE

&J * &

>

4> 4

Power purchase cost

?. /P 4 I &, H )D . ,6 = 64 4

) ?. / ;

,,

(A J <

Table 6.15 Allocations to Kerala from Central Sector Generating Companies

Power plant Total capacity in operation MW Talcher ­ II NLC II - Stage I NTPC (RSPTS) NTPC (RSPTS New) NLC ­ Expansion NLC II ­ Stage II MAPS KAIGA Eastern region (unallocated portion) 7270

SOURCE:

Firm allocation % 23.00 10.00 11.70 12.20 14.00 10.70 5.30 8.60 -

Allocation including unallocated share % 23.00 11.63 14.74 15.77 18.53 12.32 6.27 13.12

Allocated capacity to KSEB MW 460 73 310 79 78 103 21 58 0 1182

2000 630 2100 500 420 840 340 440 -

ARR petition filed by KSEB for FY 2005-06 and FY 2006-07

T E R I Report No. 2006RP23

324 Analysis and compilation of tariff orders 4 ?. / L = 4 = I = = % = ) N L ?. ) , =

Table 6.16 Comparison of cost of power purchase (Proposed Vs Approved)

Description Unit (MU) ARR KSERC Cost of Power Purchase (Rs. Crore) ARR KSERC Average per unit cost (Rs. per unit) ARR KSERC

SOURCE:

FY 2003-04 FY 2004-05 FY 2005-06 7810 7494 1858 1775 6210 6210 1729 1605 6240 5983 1492 1427

2.38 2.37

2.79 2.58

2.39 2.39

Tariff orders for various years issued by KSERC

6J

,

J

CE

Table 6.17 Source-wise power purchase in FY 2005-06

Source Energy Fixed charges plus incentives Rs. Crore 124.26 18.24 Total Rs. Crore 124.26 18.24 1.32 1.94 2.89 1.74 2.31 3.47 1.71 1.41 2.00 2.07 Total cost per unit Rs. Crore

BSES KPCL Central Share Ramagund (Old) Ramagundam(New) MAPS NLC ­ I NLC ­ II Kaiga NLC (New) Talcher ­ II UI Total

SOURCE:

0.00 0.00 1905.63 453.72 64.70 426.20 536.48 327.30 346.02 2151.15 -228.07 5983.13

83.20 47.56 4.76 41.83 66.64 0.22 24.64 200.03 0.00 719.57

252.41 87.85 18.68 74.21 124.13 113.62 59.21 303.77 -45.61 1238.96

Tariff orders for various years issued by KSERC (Approved figures for FY 2005-06)

T E R I Report No. 2006RP23

325 Analysis and compilation of tariff orders ?. / = = = 4 ?. / - 4

I )D .

-

3 @

= -

-

)D .

Overall cost of power (weighted average of PPC and cost of own generation)

,+ = ?. /P

Table 6.18 Weighted average of PPC and cost of own generation

Source Own generation Power purchase Weighted average FY 2003-04 FY 2004-05 FY 2005-06 Units Cost/unit Units Cost/unit Units Cost/unit 4836 0.32 6313 0.16 6604 0.085 7492 2.37 6211 2.58 5985 2.39 12328 1.56 12524 1.36 12589 1.18

S O U R C E : Tariff orders for various years issued by KSERC

- = 4 ,6 CE 6T

&J *

, ,+

CE ?

6J

=

Trading and UI

C > = ?. ) $ F ) ) 6 4 ?. / 3 = 0 4 ?. / 5 ; F < F 6 F F . & = (A , $) & (A 6 6 (A F F & , H ! J 0 $) J 0 6 ! 64 ?. / 0 (A -

. F

D=

$ ?. / J 0 > 6 (A * & 6 &

;$ )<

J

0 ,9 =

T E R I Report No. 2006RP23

326 Analysis and compilation of tariff orders

Table 6:19: Actual energy traded during FY 2004-05

Month Energy (MU) Aug-05 Sep-05 Oct-05 Nov-05 (up to 10th November 05) Nov-05 (11th Nov to 30th Nov 05)* Dec-05* Jan-05* Total

SOURCE:

Off-peak sales Rate (Rs./ unit) 33.98 57.47 138.91 10.80 21.48 33.4 37.20 333.32 2.72 2.72 3.07 3.05 3.05 3.05 3.05 Amount (Rs. Crore) 9.24 15.63 42.65 3.29 6.55 10.21 11.35 98.92 0.00 0.00 0.00 1.32 2.40 3.72 0.00 7.44 Energy (MU) Rate (Rs./ unit) 0.00 0.00 0.00 3.70 3.70 3.70 0.00

Peak sales Amount (Rs. Crore) 0.00 0.00 0.00 0.49 0.89 1.38 0.00 2.25

ARR petition for FY 2006-07 *Provisional as per the petition. Actual was not available

! 4 3 ;@ < )D .

Table 6:20 Energy imported / exported through Unscheduled Interchange

Month UI Import Rate (Rs. Crore) 2.02 1.93 2.49 1.4 1.22 0.93 0.38 1.86 Amount ( Rs. Crore) Energy (MU) 5.86 11.59 1.07 69.34 3.55 24.37 0.14 111.77 1.29 44.65 0.21 154.82 0.12 97.37 12.24 513.91 UI Export Rate (Rs/ kWh) 2.96 3.09 2.04 1.4 0.76 1.07 1.81

4

J = F F . ?. /

4

$)

@ @ -

Net UI export Amount ( Rs. Crore) 3.44 30.65 7.53 22.78 6.24 11.7 10.9 93.25 Energy (MU) (-) 17.39 63.79 10.08 110.79 34.13 152.55 94.12 448.07 Rate Amount (Rs/ kWh) ( Rs. Crore) 1.39 (-) 2.43 4.64 29.58 3.95 3.98 2.04 22.64 1.45 4.96 0.75 11.49 1.09 10.78 1.81 81

Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Total

Energy (MU) 28.98 5.55 14.29 0.98 10.52 2.27 3.24 65.83

S OU R C E : ARR petition for FY 2006-07

Operating expenses

Employee cost

&J *4 ?. ) = ?. /4 = = =L ;,9T CE &J *< CE &J *<4 ) / 0 = CE &J * ! * ) , )

T E R I Report No. 2006RP23

CE

= ; + = =

, >

327 Analysis and compilation of tariff orders , > & H = *, 4

CE *J 64 ?. / % &*& ) CE CE *J 6 CE *J 6 4 = ) 0 3 3 - = 4 ?. / = CE &J * H 3 4 3 4 ?. 6T -

&J * -

& 6) =

-

= CE *J 6 ?. / -

) = $ &T ;0 *J 6 CE 6J ?. / /

4 ) =

) = = CE &J *<

0

CE

4 -

= 6 T

-

% 0

-

= = = = = = CE ) = = J ; = = = ; , 9T 4 = 3 - ?. ) = CE &J * 3 ) , = < = 3 0J / 0 = *J 6 = , ,,* CE 6J = 7 4 ! 4 D=

4

/ =

4 6J = 3 < 4 /

CE

T E R I Report No. 2006RP23

328 Analysis and compilation of tariff orders 0 - ?. ) ?. /

Table 6.21 Break-up of employee cost over the years (Proposed vs. Approved)

FY 2003-04 Description Salaries and wages Holiday wages/overtime Earned leave encashment Other allowances/bonus/benefits Terminal benefits Total

SOURCE:

FY 2004-05

FY 2005-06

KSEB 303.37 0.13 25 21.34 343.8 693.64

KSERC KSEB KSERC KSEB KSERC 303.37 315.98 0.13 25 0.14 23 313 416.16 359.36 0.13 23 23.32 21.34 19.79 23.33 19.79

21.34 22.19 343.8 375.33

361 480.17 443.43

693.64 736.64 718.47 939.43 845.91

Tariff orders for various years issued by KSERC

Table 6.22 Comparison of employee cost - proposed, approved and actual over the years

Year Proposed (Rs Crore.) Approved (Rs Crore.) Actual (Rs Crore.) FY 2003-04 693.64 693.64 788.31 FY 2004-05 736.64 718.47 789.64 FY 2005-06 939.43 845.91 868.82* S O U R C E : Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 * Revised estimate

and FY 2006-07

Employee productivity

C = = = 94 = 4 -

1000 800 Rs. Cr. 600 400 200 0 FY 2003-04 Employee cost FY 2004-05 693.6 19% 718.5 21%

845.9 25%

30% 25% 20% 15% 10% 5% 0%

FY 2005-06

Employee cost as a % of ARR (approved)

Figure 6.9 Employee cost as a percentage of ARR

T E R I Report No. 2006RP23

329 Analysis and compilation of tariff orders

Table 6.23 Employee cost per unit of sale

Year FY 2003-04 FY 2004-05 FY 2005-06 S OU R C E : TERI estimates Employee cost per unit of sales (Paise/unit) 77.93 77.25 86.03

A -

- = 4 2 = 4 ?. / L -

= =

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2001-02 2002-03 2003-04 2004-05 2005-06

Figure 6.10 Number of employees per thousand consumers

S OU R C E : TERI estimates

= = = =

Table 6.24 Revenue per employee over the years

Description No. of Employees (Nos.) Revenue (Rs. Crore) Revenue per employee Based on approved figures S OU R C E : TERI estimates FY 2003-04 24454 3698 0.15 FY 2004-05 24454 3492 0.14 FY 2005-06 25565 3367 0.13

4 = =

*

Repair and Maintenance expenses

CE I = &J *4 = G 3 ( = /

T E R I Report No. 2006RP23

) ) 4 ) 4

= /

G 3 ( 2 = 4 3 4

330 Analysis and compilation of tariff orders = I =

CE 3 / ) / ) 4

*J 64 - = 0

) =

= P = = = 0 G ( -

G ( G 3 ( G ( = 0

3 -

G 3 (

)

L 6J =

/ = % 4 = /

4 ) +6 & ) I = CE *J 6 G 3 (

CE 6 =

Table 6.25 R&M expenses (Proposed, approved, actual) over the years

Year FY 2003-04 FY 2004-05 Proposed Rs. Crore 66.7 85.3 Approved Actual Rs. Crore Rs. Crore 66.7 66.7 63.8 74.5

FY 2005-06 89.1 85.3 89.1* *Revised estimate S O U R C E : Tariff orders for various years issued by KSERC and ARR Petition for FY

2005-06 and FY 2006-07

C

,, 3

G 3 ( =

;

=

<

100 80 Rs. Cr. 60 40 20 0 FY 2003-04 KSERC FY 2004-05 66.7 1.19% 66.7 1.02%

85.3 1.17%

1.5%

1.0%

0.5% FY 2005-06

% of gross fixed asset

Figure 6.11 Repair & maintenance expenses as a percentage of gross fixed assets

=

G 3 (

?. /

-

,

T

Administrative and General expenses (A&G expenses)

CE &J *4 ?. ) ?. / = G 3 D I = +T =

T E R I Report No. 2006RP23

331 Analysis and compilation of tariff orders = ) 6T = = ) 6T 3 =

Table 6.26 A&G expenses (Proposed, approved, actual) over the years

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

/

G 3 D 3 .

CE 4 CE <

*J 64 6J 4 6T =

/ )

; 3 4 =

G D G 3 D

Proposed (Rs Crore) Approved (Rs Crore) Actual (Rs Crore) 55.8 69.8 98.3 55.8 68.7 90.7 84.7 95.0* 99.4**

* As per provisional accounts ** Revised estimate (as per ARR submission 2006-07

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

H 4 ,9 &

-

0J

G 3 D &;,< ? G 3 D = G 3 D -

-

= ! = /

4

3 3 - ?. / ?. / 3

-

= ; < =

= G D G 3 D -

Table 6.27 Electricity Duty as per sec 3(1) of the KED Act, 1963

Year FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

Electricity Duty @ 6 paise / unit (Actual) Rs. Crore 33.1 28.3 21.4 51.5 54.9 58.6

A&G expenses excluding electricity duty (Actual) Rs. Crore. 46.0 38.0 30.3 33.2 35.4 39.9

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

C

, G 3 D =

G 3 D = 4 G 3 D = 4 . -

T E R I Report No. 2006RP23

332 Analysis and compilation of tariff orders

3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% FY 2003-04 as a % of ARR FY 2004-05 1.5% 6.3 2.0% 7.4

9.2 2.7%

10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

FY 2005-06

Per unit of sale (paise / unit)

Figure 6.12 A&G expenses as a percentage of ARR and per unit of sale

Total operating expenditure (employee cost, R&M and A&G expenses)

+ 4 3

Table 6.28 Operating expenditure over the years

Proposed Approved Actual Per unit of sale* As a % of ARR* Rs. Crore Rs. CroreRs. Crore Paise/unit % FY 2003-04 816.1 816.1 936.8 91.7 22.1% FY 2004-05 891.7 853.9 959.1 91.8 24.4% FY 2005-06 1126.8 1021.9 1057.4 103.9 30.3% *Based on approved figures S O U R C E : Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY Year

3 3 =

2006-07

-

=

HG 3 ( = =

Sources of funds

CE J &4 = - = 4 = / ) / / = = 9

T E R I Report No. 2006RP23

333 Analysis and compilation of tariff orders

Table 6.29 Outstanding loan liabilities (Actuals)

Year FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 Loan outstanding 3027.49 3551.10 4571.41 4771.90 5094.15 5355.65 Loan received 849.73 1303.56 690.31 1380.24 2013.40 582.16 511.43 Total 3877.22 4854.66 5261.72 6152.14 7107.55 5937.81 5052.76 Principal repayment during the year 326.13 283.26 489.82 1057.99 1751.90 1396.48 1140.93 3551.10 4571.41 4771.90 5094.15 5355.64 4541.33 3911.83 Closing balance

FY 2005-06* 4541.33 *Revised estimate S O U R C E ARR tariff petition, 2006-07

2 / /

= 4 0 = 4 4 4 = = & .=

) = 4 D= 4 = & *& ) = -

/

T E R I Report No. 2006RP23

334 Analysis and compilation of tariff orders

Table 6.30 Details of swapping of high cost loans

ERC filling for FY 2006-07 S O U R C E ARR and ERC filing for FY 2006-07 Year Item Amount (Rs. Crore) Non SLR Bond VI REC I Stage REC II stage LIC FY 2003-04 PFC at I stage PFC at II stage` Loan taken for KDPP Total Non SLR Bond IXFY 2004-05 call option REC shortterm loan Total Non SLR Bond IXFY 2005-06 call option Total Grand Total 300.00 649.43 118.97 187.41 100.00 18.13 125.00 1498.94 6.48 Before swapping Interest (%) 15.25 13-15 13 14 15-17 13.5-15 13.75 Amt (Rs. Crore.) 187.58 278.95 39.97 102.98 67.26 7.21 48.35 732.3 2.22 After swapping Interest (%) 7.50 10.50 10.00 11.00 8.5-10 8.50 11.25 Amt (Rs. Crore.) 54.74 226.89 29.36 80.91 49.98 5.74 25.47 473.09 1.09 40.46 Nil Premium paid (Rs. Crore.) Net savings (Rs. Crore.) 132.84 31.85 7.65 14.27 8.73 0.53 22.88 218.75 1.13 Annual net savings (Rs. Crore.)

Nil 20.21 2.96 7.8 8.55 0.94

26.57 3.98 0.85 1.10 0.97 0.08 2.29 35.84 0.37

13.25

6.50

48.77 55.25 1.63

9.75

3.23 5.45 0.22

6.50

1.71 2.80 0.10

0.42 0.42 Nil

1.10 2.23 0.12

1.10 1.47 0.12

13.75

6.20

1.63 1555.82

0.22 737.97

0.10 475.99

40.88

0.12 221.10

0.12 37.43

Status of PFC lending

?

Table 6.31 Status of PFC lending

Description BSES Kerala Power KSERC KSEB

SOURCE

&,

$ C)

Total sanctions (Rs. Crore) 99.93 0.070 556.07

Total disbursements (Rs. Crore) 99.93 0.070 516.65

Power Line, Volume 11, No. 2, October 2006

T E R I Report No. 2006RP23

335 Analysis and compilation of tariff orders

Status of APDRP schemes

/ 9 6 ,) Table 6.32 Details of APDRP Schemes

Scheme 3 Circle scheme 7 Town scheme 26 Town scheme 13 Town scheme 3 city improvement scheme Total

SOURCE

% $ $ ! 0 = -

Year of sanction 26th August 2002

Project cost (Rs. Crore) 181.59 168.76 123.91 57.18 373.57 905.01

Target date of completion December 2005 March 2006 March 2006 March 2007 March 2008

27th November 2002 1st October 2004 4th April 2005 4th April 2005

ARR and ERC filing for FY 2006-07

= J , 0F G ! = / 6T = 4 @ % = = 4 L = ,, 0F 4D= 4

4

4

Capital expenditure

&& = JOJ= 3 3 = )

(Rs.

FY 2005-06 Actual 1343.48 501.42 357.00 62.04 42.88 461.92 1303.98 KSERC 1351.49 905.68 695.78 98.36 159.17 953.31 1399.12 Actual* 1303.98 543.03 554.35 54.97 40.68 650.00 1410.95

Table 6.33 Capital expenditure by KSEB (Actual vs. Approved) Crore)

Description Capital works in progress Works transferred to gross block Capital expenditure Interest capitalized Other expense capitalized Total capital expenditure Closing balance *Revised estimate

SOURCE:

FY 2003-04 KSERC 1502.90 924.28 350.00 115.45 119.80 585.25 1163.87 Actual 1502.90 968.51 621.93 78.11 109.05 809.09 1343.48

FY 2004-05 KSERC 1267.27 707.84 260.74 115.73 123.53 500.00 1059.43

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

T E R I Report No. 2006RP23

336 Analysis and compilation of tariff orders 4 ) 3 3 4 % 0 ) = 0 L 3 = = / ?. /4 / 4 . P = 0 / ) % = I = = = =

Provision for bad debts and prior period expenses

CE +) = CE ) / &J *4 3 3 J & 4 T 0 J ) 3 , *, ) ) = = 6+ + ) - C 3 -

CE -

*J 64 = ) *J 6 6J +6 ) 4

) / -

= / -

-

= 3 CE CE , =

6 )

?. / 4 = 3 4 3 = -% )

3 =

C

4

) = )

4 = 6 ) -

-

- 4 / 4 4

)

0 3 / CE

/

?. ) 6 ) 6J

3 &*

3

T E R I Report No. 2006RP23

337 Analysis and compilation of tariff orders = Table 6:34 Prior Period expenses over the years (proposed vs. approved)

FY 2003-04 Proposed Approved Rs. Crore Rs. Crore Prior period charges 66.47 58.87 Provision for bad debts 43.53 17.41 Total (other expenses) 110 76.28 * A total of Rs. 50 Crore was approved in FY 2005-06 Description

SOURCE:

3

FY 2004-05 Proposed Approved Rs. Crore Rs. Crore 86.42 50 43.58 0 130 50

FY 2005-06 Proposed Approved Rs. Crore Rs. Crore 120 24.2 144.2 50*

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY

2006-07

Rate of return

CE &J *4 ?. / ) CE *J 64 ?. / ,66 & ) I = , T ,66& ) ) = &T = & D= , 6) 2 = = 4 = * &, ! ) ,*T D H L & 9, +& ) = I I I = 4 -

/

4. 4 ;(. 99N <

D= = D= *N C = /

/ 4 . 6 C /

D=

D= = - D= CE / < ) 6J

? 4 ?. / , * ) ?. ) ; 4 I

,*4

T E R I Report No. 2006RP23

338 Analysis and compilation of tariff orders

Table 6.35 Rate of return (Proposed vs. approved)

FY 2003-04 Proposed 91.83 Approved 91.83 155.3 FY 2004-05 Proposed Approved 105.0 FY 2005-06 Proposed 217.4 equity Approved 217.4

Basis ­ 3% Return on capital base

Basis for proposed amount was 10% on equity based and basis for approved amount ­ 3% Return on capital base

Basis ­ 14% Return on

SOURCE:

Tariff orders for various years issued by KSERC

Depreciation

CE I = ) &J *4 ) 4 CE *J 6 0 - 4 ?. / = 4 ) / / = 4 ) = 2 = 4 0

CE 6J 4 ?. / *& &6 ) 69 T ;. < ,9*+ ) . , ,9*+4 = = . ) ) ,; <

= = = &4 ;. ) < 4 ,99+ 4 4

-

3

&4 4 ) . 4 -

-

)

) -

-

?. /4

6J 4 ?. ) ?. )

?. ) CE 4

0 = 4

?. / &

4 /

=

) =

=

-

T E R I Report No. 2006RP23

339 Analysis and compilation of tariff orders = &J *4 CE *J 6 ; CE = 6J < CE

Table 6.36 Weighted average depreciation rates (proposed and approved) over the years

FY 2003-04 Description Proposed Rate (%) FY 2004-05 Proposed Approved Amount (Rs. Crore). 14.47 18.85 3.67 182.24 160.59 Proposed Rate (%) 3.7 2.6 2.6 6.9 6.7 Amount (Rs. Crore). 15.31 19.29 4.76 199.11 189.34 Rate Amount (Rs. Rate Crore). (%) (%) 3.8 2.59 2.63 6.71 6.89 Rate (%) 2.57 1.8 2.57 3.6 3.6 FY 2005-06 Approved Amount (Rs. Crore.) 10.63 13.46 4.75 103.14 101.45

Approved

Amount (Rs. Crore). 14.79 15.98

Buildings 4.36 3.8 14.47 Hydraulic 2.34 2.59 18.85 Works Other Civil 2.39 2.38 2.39 2.38 2.63 3.67 Works Plant 6.63 171.87 6.63 171.87 6.71 182.24 &Machinery Lines, 6.79 128.32 6.79 128.32 6.89 160.59 cables, Network etc. Vehicles 1.73 0.2 1.73 0.2 2.05 0.24 Furniture 0.85 0.08 0.85 0.08 12.46 1.34 and Fixtures Office 10.61 0.9 10.6 0.9 10.08 0.87 Equipments Total 5.98% 334.52 5.98% 334.52 5.83% 382.27 S O U R C E : Tariff orders for various years issued by KSERC

Amount Rates (Rs. (%) Crore.) 14.79 4.36 15.98 2.34

2.05 12.46 10.08 5.83%

0.24 1.34 0.87 382.27

0.6 9.9 9.4 3.24%

0.07 1.13 1.33 430.35

6 6 6 3.24%

0.68 0.69 0.85 235.65

Table 6.37 shows a comparison of proposed, approved and actual amount of depreciation charged each year.

Table 6.37 Proposed, approved and actual amount against depreciation

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

Proposed ( Rs Crore) 334.52 382.27 430.35

Approved ( Rs Crore) 334.52 382.27 235.65

Actual ( Rs Crore) 326.19 374.77 392.65

Weighted avg. depreciation rate Basis for estimation (Approved figures) % ESA 1948 5.98% ESA 1948 5.83% KSERC regulations ­ rates based on CERC 3.24% guidelines

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

Annual Revenue Requirement (ARR)

= &+ < = ; 4

T E R I Report No. 2006RP23

340 Analysis and compilation of tariff orders

Table 6.38 Comparison of proposed, approved and actual ARR over the last three years (All figures in Rs. Crores)

FY 2003-04 Particulars Generation of Power Purchase of power Interest & Finance charges Depreciation Employee cost R&M A&G Other expenses Gross expenditure Less: Expenses Capitalized Less: Interest Capitalized Net Expenditure Statutory Return ARR Less: Non-tariff income Less: Revenue from Tariff Total Income Revenue Gap KSEB KSERC 153.3 153.3 1858.1 1775.1 721.5 679.3 334.5 334.5 693.6 693.6 66.7 66.7 55.9 55.9 110.0 76.3 3993.7 3834.7 119.8 119.8 Actual 143.7 1887.1 726.3 326.2 788.3 63.8 84.7 143.4 4163.5 109.1 78.1 3976.4 91.8 4068.2 304.7 2756.1 3060.8 1007.4 FY 2004-05

FY 2005-06

Actual 119.6 1549.3 658.4 382.3 864.3 85.3 90.6 123.7 3873.4 146.3 104.1 3623.1 155.3 3778.4 231.2 2883.6 3114.8 663.5 KSEB 55.9 1492.8 617.7 430.4 939.4 89.1 98.3 144.2 3867.7 159.0 99.2 3609.6 217.4 3827.0 259.0 3075.7 3334.7 492.3 KSERC 55.9 1427.3 583.6 235.7 845.9 85.3 90.7 50.0 3374.3 138.8 85.6 3149.9 217.4 3367.3 269.5 3046.5 3316.0 51.3 Actual 48.9 1512.1 566.5 392.7 868.8 89.1 99.5 151.5 3729.0 40.7 55.0 3633.4 217.4 3850.8 293.3 3248.0 3541.3 309.5

KSEB KSERC

149.0 1729.7 723.3 382.3 736.6 85.3 69.8 130.0 4006.0 123.5 115.7 3766.7 155.3 3922.0 231.2 2836.7 3067.8 854.2 100.5 1605.0 618.3 382.3 718.5 66.7 68.7 50.0 3610.0 123.5 99.0 3387.5 105.0 3492.5 231.0 2965.0 3196.0 296.5

115.5 108.9 3758.5 3606.0 91.8 91.8 3850.3 3697.8 240.4 240.4

2683.9 2901.0 2924.2 3141.4 926.1 556.5

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

SOURCE:

3

=

4 =

= 3

-

5000.0 4000.0 3000.0 2000.0 1000.0 0.0 KSEB KSERC Actual

2003-04 3850.3 3697.8 4068.2

2004-05 3922.0 3492.5 3778.4

2005-06 3827.0 3367.3 3850.8

Figure 6.13 Trend in ARR (Proposed, approved and actual)

T E R I Report No. 2006RP23

341 Analysis and compilation of tariff orders

Other performance parameters HT-LT ratio and Number of distribution transformers

C = 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 1957 1967 1977 1987 1997 HT:LT ratio 2005

,*

2 "5 ? 2 "5 /

= = 4

40000 35000 30000 25000 20000 15000 10000 5000 0

Distribution Transformers (Nos.)

Figure 6.14 No of distribution transformers and HT: LT ratio over the years S O U R C E : ARR Petition for FY 2005-06 and FY 2006-07

Tariff Rebalancing Tariff rationalization

CE / = ) ! 3 CE ) = - 4 ) CE

1

&J *4 4 3 -

) = I

0 ?. /

= J ,4 CE J ,999 J

,J

4

*J 6 CE *J 6 - ?. / A

1

C

T E R I Report No. 2006RP23

342 Analysis and compilation of tariff orders - = = 3 0 ,,+T ,69T = = 4 0 = - - = 4 H D= % = / , ) )

2

= ) 2 / 2 -

4 L

) - = ) 3

4 I

0 = = L = = = ?. ) L / ,

1

-

?. / ! 4 ) - &, H 6 *& ) 4 ?. / =

-

4 & 3 = 0

3

-

=

)

I

4 = - = 4

L =

3 H 0 -

4 ?. / L 0 CE -

4 = 3 = J +

) 0 J

New initiatives in tariff design

Promotion of renewables

= J ?. ) = Q R * > 3 4

1 It is only on 20th January 2006 that tariff for LT-1 Domestic and LT- VII (A) and (B) Commercial consumers was reduced by 20 paise 2 Tariff Order for FY 2003-04 3 As submitted by the Board, it has already taken steps to collect the data required for conducing the cost of service. Due to delay in processing the same by the Board, the Commission has itself initiated a study for "determination of sample load curves for different category of consumers in KSEB system and estimation of typical energy losses at different voltage level". The study has been commissioned to Central Power Research Institute. The study is to be completed by November 2006.

T E R I Report No. 2006RP23

343 Analysis and compilation of tariff orders ! ) . 0 L = 4 T 4); 3 ) & = 5 N P = & ,* ) % ** ; 6 = < L = = = I I ) 4 N I < 3 0 ,T 6T T I 0 = 6T

-

Initiatives towards demand side management

! 0 ? 0 2 J 0 ,* > 6

1

4 ?. ) =L J 0 = I = ) 0 =

2 =

i. ii. iii.

The order adopted following modifications in respect of differential pricing method The maximum permissible demand during the off-peak hours shall be allowed up to 120% of the contract demand in place for the prevailing limit of 105% of the contract demand and incentives for the demand charges shall be worked out on that basis For working out the incentives for energy charge, the off-peak consumption in excess of 27.5% of the total consumption shall be taken, instead of the present level of 30% The rate of incentive for energy charge shall be 35% instead of the present level of 25%

1

T E R I Report No. 2006RP23

344 Analysis and compilation of tariff orders 4 = 2 = ?. )4 3 . 0 ?. / H ( ! = ) 4 = = I - 4 = = ) 0 ) $ D= = 4 4D= H ) ? L , -% = = )C5 = )

1

- =

9 -

2 9

Category-wise average tariff

&9 &J *4 CE L = *J 6 = CE L 6J 5 42 CE = 2

=

Table 6.39 Category-wise average tariff in FY 2003-04, FY 2004-05 and FY 2005-06

FY 2003-04 Sales Revenue MU Rs. Crore 3927 748 863 196 167 5901 1185 127 297 8 1617 642 316 625 20 27 25 1655 518 44 107 1 670 Average realization Rs./unit 1.63 4.23 7.24 1.01 1.64 2.80 4.37 3.45 3.60 1.13 4.14 FY 2004-05 Sales Revenue MU Rs. Crore 4125 795 920 196 177 6213 1185 137 352 8 1682 758 321 661 17 35 1792 474 57 150 3 684 Average realization Rs./unit 1.84 4.04 7.18 0.87 1.98 2.88 4 4.16 4.26 3.75 4.07 FY 2005-06 Sales Revenue MU Rs. Crore 4540 873 974 202 188 6777 1241 150 8 368 1767 804 352 656 18 32 1863 493 67 3 168 730 Average realization Rs./unit 1.77 4.03 6.73 0.92 1.70 2.75 3.97 4.45 3.90 4.55 4.13

Category LT Domestic Industrial Non Domestic Agricultural Street lighting Others* Sub total LT HT Industrial Non industrial Commercial Agricultural Sub total HT EHT

1 Incentive of 0.15% of energy charge for each 0.01 unit increase in power factor from 0.9 and penalty of 1% energy charge for every fall from 0.9 p.f.

T E R I Report No. 2006RP23

345 Analysis and compilation of tariff orders

FY 2003-04 FY 2004-05 FY 2005-06

Average Average Average Sales Revenue realization Sales Revenue realization Sales Revenue realization Category MU Rs. Crore Rs./unit MU Rs. Crore Rs./unit MU Rs. Crore Rs./unit 66kV 290 119 4.12 291 112 3.85 267 100 3.76 100kV 839 381 4.54 839 295 3.52 765 276 3.61 Sub total EHT 1129 501 4.43 1130 407 3.60 1032 377 3.65 Railways 50 18 3.62 60 22 3.67 56 20 3.65 Bulk supply 196 58 2.94 207 60 2.90 200 57 2.83 Total** 8893 2901 3.26 9292 2965 3.19 9832 3046 3.10 *Other include temporary connection and irrigation & dewatering **Unit corresponding to NPG group (8 MU) have not been included, as they have no revenue impact S O U R C E : Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and

FY 2006-07

=

= 0 =

-

&94

=

L 2 = 4 - = C ,6

L

3 5

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2003-04 Domestic 2004-05 Industrial 1.63 1.84 4.23 4.04

=

7.24

7.18

6.73

4.03

1.77

2005-06 Non Domestic

Figure 6.15 Tariff trends for consumer categories at LT level

Cross subsidy

) J 2 = 4 ?. / 0 - = J = = J I 4 L - L

T E R I Report No. 2006RP23

346 Analysis and compilation of tariff orders

Table 6.40 Changes in cost recovery for various consumer categories for FY 2003-04, FY 200405 and FY 2005-06

FY 2003-04 Average realization Average Cost Category LT Domestic Industrial Agricultural Non Domestic Street lighting Sub total LT HT Industrial Non industrial Commercial Agricultural Sub total HT EHT 66kV 100kV Sub total EHT Railways Bulk supply Total 4.12 4.54 4.43 3.62 2.94 3.26 3.89 3.89 3.89 3.89 3.89 3.89 106% 117% 114% 93% 76% 84% 3.85 3.52 3.6 3.67 2.9 3.19 3.51 3.51 3.51 3.51 3.51 3.51 110% 100% 103% 104% 83% 91% 3.76 3.61 3.65 3.65 2.83 3.1 3.15 3.15 3.15 3.15 3.15 3.15 119% 115% 116% 116% 90% 98% 4.37 3.45 3.6 1.13 4.14 3.89 3.89 3.89 3.89 3.89 112% 89% 93% 29% 107% 4 4.16 3.75 4.26 4.07 3.51 3.51 3.51 3.51 3.51 114% 119% 107% 121% 116% 3.97 4.45 3.9 4.55 4.13 3.15 3.15 3.15 3.15 3.15 126% 141% 124% 145% 131% 1.63 4.23 1.01 7.24 1.64 2.8 3.89 3.89 3.89 3.89 3.89 3.89 42% 109% 26% 186% 42% 72% 1.84 7.18 4.04 0.87 1.98 2.88 3.51 3.51 3.51 3.51 3.51 3.51 52% 205% 115% 25% 56% 82% 1.77 4.03 0.92 6.73 1.7 2.75 3.15 3.15 3.15 3.15 3.15 3.15 56% 128% 29% 214% 54% 87% Rs./unit Rs./unit AR/AC Rs./unit FY 2004-05 Average realization Average Cost Rs./unit Rs./unit AR/AC Rs./unit FY 2005-06 Average realization Average Cost Rs/unit Rs./unit AR/AC Rs./unit

S O U R C E : TERI estimates

)

= 4 L 9T CE = =

-

4 6J = H ,*T = J * 4 L = 0 5

+*T

9+T4

T E R I Report No. 2006RP23

347 Analysis and compilation of tariff orders

Convergence index (CI)

C , = ) CE J & CE 6J

0.80 0.60 0.40 0.20 0.00 2003-04 (A) 2004-05 (A) 2005-06 (A) 0.50 0.56 0.61

Figure 6.16 Trend in Convergence Index over the years

SOURCE

TERI estimation from tariff orders issued by KSERC for FY 2003-04, FY 2004-05

and FY 2005-06

? L = J )4 =

B

= =

Subsidy support from the government and treatment of revenue gap

CE &J *4 & 9 +& ) / 3 = 9 ,) 66 * ) ?. ) = D= ,+ 6 ) 3 &;,< ? ! * / = ) 66 6 ) CE *J 64 &*9 * ) / 3 = 9 6) 9 ) ?. ) = D= ) 3 &;,< ? !

T E R I Report No. 2006RP23

= &+6 &, ) * & ) 0 ? =

) J = -

4 , 6) D= 4

?

= &9 &, ) 0 ? ,

) =

) J = &*

)

348 Analysis and compilation of tariff orders * ) D= / 4 9 )

=

CE && /

6J 4 & ) 3 = & * * ) 6, &, ) = I

= &+ 9

-

) J = = = T

= 4 =

9 6* ) )

(Rs Crore)

FY 2004-05 3492.4 2965.0 231.0 296.0 200.0

Table 6.41 Revenue gap over the years

Description ARR Revenue from tariffs Non-tariff income Revenue gap Concessions and subsidy

SOURCE:

FY 2003-04 3697.8 2901.0 240.3 556.4 557.5

FY 2005-06 3367.3 3046.4 269.5 51.3 -

Tariff orders for various years issued by KSERC and ARR Petition for FY 2005-06 and FY 2006-07

Release of subsidy by the Government of Kerala

D= * = ? = -

Table6.42 Details of the subsidy receivable from the Government of Kerala

Sl No. (i) (ii) (iii) Particulars Revenue depicts as per Accounts/ estimate Revenue deficit as per SERC order SERC's order to bridge the Gap (a) Adjustment against electricity duty etc payable by KSEB to GoK (b) Payment as subsidy from GoK to KSEB (iv) (v) (vi)

SOURCE

FY 2003-04 1007.43 556.46 182.56 375.00 556.46 0.00 450.97

FY 2004-05 342.76 296.00 200.00 96.00 0.00 96.00 46.76

FY 2005-06 309.50 51.31 0.00 51.31 0.00 51.31 258.19

Amount paid as subsidy by GoK Balance subsidy remained to be paid by GoK as per SERC order Unbridged revenue gap (i)- (ii) ARR and ERC filing for FY 2006-07

- = CE D= 6J 4)

- 4 /

D= - ?

)

CE 4

*J 6 = 4

T E R I Report No. 2006RP23

349 Analysis and compilation of tariff orders @ = D= = I 4 ) 0 =

-

Governance Public participation

0 = ) 4 ) 0 ( = = ?. /4 = -

Table 6.43: Level of public participation

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

Time given for filing comments /objections 60 days 45 days 60 days

No. of written objections 20 24 12

No. of participants 67 44 33

Tariff orders for various years issued by KSERC

%

-% 4 0

= H CE &J *4 -% = 0 3 - ,6 CE Q ?. / 4 CE 6J = 0 = ! 4 4 *J 6 4

4

- = 0 * ) = -%

4

-% R 4 3 =

Timeliness of tariff orders

L ) 0 ;. )<

T E R I Report No. 2006RP23

= -% 4 = . -

4 - = ?. /4 = )

350 Analysis and compilation of tariff orders A ?. ) & , 3 I = ?. )

Table 6.44 Timeliness of tariff orders

Year FY 2003-04 FY 2004-05 FY 2005-06

SOURCE:

) 4 ?. /

%

= ?. / ** -

Date of filing of petition Date of acceptance Date of Issuance of petition of Order 01-Aug-03 15-Dec-03 15-Nov-04 16-Aug-03 16-Dec-03 17-Nov-04 31-Dec-03 16-Apr-04 23-Mar-05

Days from filing to acceptance 15 days 1 day 2 days

Days from acceptance to issuance 137 days 121 days 126 days

Consumer advocacy and redressal mechanism

?. ) D = H 6 . ;? L 0 ) = = H = 4 = H = 44 ) C = 0 )

Tariff orders for various years issued by KSERC

Q ) H -

\ 4 ?. / 0 0 < ! 4

;? <

<4 )

; = 4 -

. -

D= =

Regulatory initiatives

Implementation of Multi-year tariff framework

) (E C = 5 / ! 4 . / =

T E R I Report No. 2006RP23

0 =

,

H 0

-

! = ! ! ) 5 -

351 Analysis and compilation of tariff orders (E CE - & ! = ?. ) ) 0 ? = J + J ?. ) = 4 0 J + )

$

Open access

) = 6 - Table 6.45 Phasing of open access for consumers

Phase Phase I Phase II Phase III Phase IV Consumers with maximum demand of 10 MW and above 5 MW and above 3 MW and above 1 MW and above From 1st December 2005 onwards From 1st December 2006 onwards From 1st December 2007 onwards From 1st December 2008 onwards Time

4

S O U R C E ; Website of KSERC

4 ) ?. )B 4 0 ;

= ) < H ?. / $ 4 1

4

= ?. )

C

Appeals against orders

) ) D= = - ) N / ? M 4 ?. )4 5 4 D= 4 - ?. ) 4= = ) = -

1

The Commission has fixed a transmission charge of Rs. 10 paise/kWh to KSEB for the energy delivered at Indal. Also Indal was to compensate KSEB for transmission losses at 3% of the energy injected into the KSEB system for transmission to its premises. Indal was to pay a transmission surcharge of 25 paise per unit of energy delivered to it. This was to be reduced in a phase manner (5 paise per unit every year) to nil by 2009

T E R I Report No. 2006RP23

352 Analysis and compilation of tariff orders ?. )4 - = 4 = 1

-

= = ?. )

-

Status of annual accounts

?. / 6J = CE *J 6 = CE

Staffing

( N 0 I J J = * I N ?. ) . D= H *& I ?. ) . D= ,& . ?. )

2

?. )

)

4

Table 6.46 Total requirement of officers/staff

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Posts Advisor Secretary Director (Tariff) Director (Engineering) Joint Director (Tariff) Joint Director (Engineering) Law Officer Senior Economic Analyst Senior Financial Analyst Deputy Director (Engineering) Executive Assistant System Administrator Accounts Officer Administrative Officer Accountant UD Clerk Confidential Assistant LD Clerk Driver Peon Receptionist Sweeper Scavenger Daffadar Security Guard Messenger Number 3 1 1 1 1 1 1 1 1 2 3 1 1 1 1 1 6 1 3 3 1 2 1 1 3 1

S O U R C E : Obtained from KSERC

In the first minor changes were done so as to enable the KSEB to collect arrears at an early stage 2 Primarily support staff

1

T E R I Report No. 2006RP23

353 Analysis and compilation of tariff orders

Status of the directives issued by KSERC

= = J

Table 6.47 Status of important directives given by KSERC (based on the replies submitted by KSEB to KSERC)

No. 1. Summary of Directives Completion of computerization of billing and replacement of meters Status based on KSEB's reply The billing of HT and EHT consumers has already been computerized. Computerization of billing at LT level is taking more than the scheduled time because of a number of problems faced while moving from manual process to computerization. 183 sections out of the 601 sections are already computerized. Litigation and stay from the Hon'ble High Court on procurement of computer hardware, a necessity to conduct an IT audit on the software in view of the discussions held in the Kerala Legislative Assembly and requirement of huge data collection had delayed the process. The IT audit by C-DAC has now been completed. 2. Receivables and Collection efficiency: The Commission recommends the Board to improve collection efficiency to 98-99%. Consumer-wise analysis and efforts made by KSEB to collect the outstanding dues should be given. KSEB should provide correct picture of current level demand and collection and set up of Task Force for collecting outstanding dues. All the consumers except the connections given under Scheme like "Kutir Jyothi" have been metered. The Board has been taking all efforts to improve the collection efficiency. The collection efficiency of the LT consumers of the Board in the year 2002-03, 2003-04, 2004-05 was 92.29%, 93.28% and 93.5% respectively. During the current year, up to the month of September, the average collection efficiency has been 94.1%. KSEB indicated that the collection efficiency could not be improved further due to non-payment of the electricity charges by the Government Departments, State PSUs and protracted litigations by private consumers. A Task Force for arrear collection has been set up by the Board, which has submitted a detailed report on arrears. The report highlights consumer category-wise arrears pending for various years. Total arrears as indicated in the report are equivalent to five months of revenue from sale of power by the KSEB. The KSEB has categorized all the dues in three categories ­ cases pending under litigation; cases referred to revenue recovery actions but pending recovery and cases pending with the Government and in the Board for decisions. Appropriate measures are being taken by the Board to expedite the recovery of dues in each of the above category. The KSEB has furnished the details of faulty meter replacement during for the last few years. These are given below: Year No. of Faulty meter replaced 2002-03 4.21 Lakhs 2003-04 8.67 Lakhs 2004-05 4.35 Lakhs 2005-06 4.20 Lakhs (up to October) As submitted by the KSEB, the Industrial activity in the state is dependent on a large number of socio economic, political & environmental factors including power scenario. With a view to generate additional demand for energy from the Industrial consumers, the Board has inter alia taken the following measures:i. Waived the minimum demand during the period of lock out etc. of tea estates ii. Allowed installments /time extension to remit the dues by large number of Industrial consumers iii. Introduced one time settlement scheme to pay the arrears and revive connections iv. There is practically no delay in giving new industrial connections v. The Board has introduced a scheme of incentive for load factor and power factor improvements vi. No upward tariff revision has been proposed since October 2002 Due to the above measures, unlike in the past, in 2005-06, there is an increase of 4% in energy consumption by the industrial consumers. The Board expects that there will be a growth of 5% in

CE 6J 4 ?. / *

?. )

= - ?. )

= CE

3.

Furnish report on replacement of faulty meters

4.

The Board shall furnish a detailed action plan for improving the sales to Industrial consumers

T E R I Report No. 2006RP23

354 Analysis and compilation of tariff orders

No. 5. Summary of Directives The Board shall furnish the complete data and results in respect of cost of st service study latest by 31 May 2005' Status based on KSEB's reply energy consumption of the industrial consumers in 2006-07 As submitted by the Board, it has already taken steps to collect the data required for conducting the cost of service. Due to delay in processing the same by the Board, the Commission has itself initiated a study for "determination of sample load curves for different category of consumers in KSEB system and estimation of typical energy losses at different voltage level". The study has been commissioned to Central Power Research Institute. The study is to be completed by November 2006. As submitted by the Board, it has taken steps for complete metering of transformers under APDRP so that it is able to assess the voltage-wise losses. The Commission however has commissioned its own study as indicated above. As submitted by the KSEB, the State Government is in the process of deciding the structure of the Board with reference to the provisions of the Electricity Act-2003. KSEB is still operating as a single entity with the concurrence of the State and Central Government. Segregation of assets and liabilities of Generation, Transmission and Distribution sectors of the Board involve a great deal of study, effort and time. Moreover, the new structure of future setup of the Board will be a deciding factor in this regard. Therefore, the Board had requested the Commission to allow to file the ARR for the year as a single entity. The Board has submitted that the decision of the Government on Separation of the Load Despatch function or formation of a separate load desptach center etc is still awaited and hence no action in this regard has been taken till date. KSEB has submitted that it is in process of determination of function wise cost, as part of the cost of service study and shall submit the principles for determination of wheeling charges along with the cost of service study results

6.

The Board shall file the segregation of voltage level technical loss and loss reduction plan The Board shall file separate ARR& ERC in respect of transmission licensee and distribution licensee. The Board shall file petition for transmission tariff in accordance with the approved th ARR&ERC order before 30 April 2005.' Commission directed the Board to initiate steps to separate financial and physical functions of LDC The Board shall file the proposal on principles of determination of wheeling charges

SOURCE:

7.

8.

9.

Tariff orders for various years issued by KSERC

Regulations notified by KSERC

Regulations KSERC (Terms and Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity under MYT Framework) Regulations, 2006 Draft KSERC (Intra-State ABT) Regulations, 2006 Draft KSERC (Terms and Conditions of Tariff for Transmission of electricity) Regulations, 2006 KSERC (Power Procurement from Renewable Sources by Distribution Licensee) Regulations, 2006 KSERC (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations KSERC Draft (Fees) Regulations KSERC Business Regulations. KSERC Tariff Regulations KSERC (Consumer Grievance Redressal Forum and Electricity Ombudsman) Regulations, 2005 Kerala Electricity Supply Code 2005 KSERC (First Amendment) Regulations, 2005 Kerala Electricity Supply Code 2005 KSERC (Procedure for filing appeal before the Appellate Authority Regulations, 2005 2nd March 2005 7th October 2005 14th December 2005 2005 3rd January 2004 3rd January 2004 6th October 2005 2005 6th March 2006 29th September 2006 6th March 2006 Date 12th October 2006

T E R I Report No. 2006RP23

355 Analysis and compilation of tariff orders

Regulations KSERC (Accounting) Regulations, 2005 Kerala State Electricity Grid Code, 2005 KSERC Draft (Terms and Conditions of Tariff for Retail Sales Of Electricity) Regulations.2004 KSERC (Terms and Conditions for Open Access) Regulations, 2005 KSERC (Conditions of License for State Transmission Utility) Regulations, 2005 KSERC (Conditions of License for Existing Distribution Licensees, Regulations, 2006 Terms and Conditions of Tariff for Retail Sale of Electricity, Regulations, 2006. KSERC (Licensing) Regulations, 2006 KSERC (Licensees' Standards of Performance) Regulations, 2006 31st March 2006 9th May 2006 23rd March 2006 23rd February 2006 2nd November 2005 14th December 2005 2nd Date April 2005 13th January 2006 2004

Power sector rating

( 6 = CE 6J $ 4D 4? CE &J *4 CE *J

Table 6.48 Power sector ratings

FY 2003-04 Rank Score 15 34.25 FY 2004-05 16 31.48 FY 2005-06 9 31.63

*

9

? CE

= 6J

3 0 "

,6

CE

&J

' . = 2 2 5 I = * -

Conclusion

?. / $ 2 = 4 = = ; < -

T E R I Report No. 2006RP23

356 Analysis and compilation of tariff orders = = = 0 =

4 = )

0 ,&9+ ) = ! C = 5 0 ) = L 3 = = J L = = = = = = ( ) = / 0 H / = = % D= ?. / = = ?. / ?. )P 4 I = = =

4

2

J -

T E R I Report No. 2006RP23

357 Analysis and compilation of tariff orders

CHAPTER 7 Madhya Pradesh

Introduction

( ;($ )< $ ) $ ) $ 4 ,99+ 4 ,99+ D= ) ( & , = = D= 4! / , ( ;($ / . = D ( / " < $ > & & ;D ($ < &, ( 4 0 D 4 . $ . 6 -

P

& * 6

( $$ ) 5 4 >;($ D $ )5< ( $$ ) 5 4 >;($ )5< $ ( $$ = ? F F ) 5 4 >;($ ?F )5< $ F ( $( ? F F ) 5 / ;($ (?F )5< F ( $$ ? F F ) 5 4 ;($ ?F )5< $ F , > 3 64 H ($ / . ( =

A

= > 4 ($ / . 4 D ($ 4 / 0$ . D= J= P S ($ ! CE CE 3 &J * 0 I & 4 & *J 6 = / 0. J ( $$ P. < 4 ($

) - 0 )

;S

T E R I Report No. 2006RP23

358 Analysis and compilation of tariff orders &, ( - ($ / . A ) 4 C % = ($ / . & 0 0 * 6 = ! ($ / . ($ / . ). / ;) (. . 4 ) = / < = 4 I ) ($ / . CE * I & C 0 4 = 4 ($ / . = & " & = -

= ,

($ / . = ($ / .

H CE

+ H *J 6

-

&4 = =

($ / .

I CE

) &J * CE *J 6

0

) * GCE ! 3 ) 3 ! CE &J * ($ / . ! CE *J 6

*J 6 - ,6 ! &4 ($ / . 3 = I &

&4 = -

($ / . 0 ) = CE I J & 4 CE CE

CE &J & .- I 4 ) - ,6 = I I 5 CE &J * = 3 = 2 = 4 CE &J * GCE *J 6 * = = N = CE J & CE &J * - I I I

*J 6 &J *

4 = -

T E R I Report No. 2006RP23

359 Analysis and compilation of tariff orders

C

CE

6J 4 ) ($ D $ )5 ($ )5B $ I 0 -

= 4 4 4

= -

($ / .

-

) *

= ,) - * ($ ) ($ ) = 6 9 9 (A

=

-

Demand supply gap

J = ,& 6T CE 0 &J * CE = *J 6 , T ,& T = ,+ 6 T

Installed capacity

3

Table 7.1. Installed capacity in Madhya Pradesh

S.No. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 Power Station Amarkantak I (30+20 MW) Amarkantak II (2x120 MW) Satpura I (5x62.5 MW) Satpura II (200+210 MW) Satpura III (2x210 MW) Sanjay Gandhi, Birsinghpur -I (2x210 MW) Sanjay Gandhi Birsinghpur -II (2x210 MW) Thermal Power Station Gandhi Sagar(5x23 MW) Pench,Totladoh(2x80 MW) Rani Awanti Bai Bargi (2x45 MW) Ban Sagar I Tons(3x105 MW) Birsinghpur(1x20 MW) Rajghat (3x15 MW) Ban Sagar II Silpara(2x15 MW) Bansagar -III Deolond (3x20 mW) Bansagar -IV Jhinna (2x10 MW) Madhikheda (2x20 MW) 40 Installed capacity (MW) 50 240 312.5 410 420 420 420 2272.5 115 160 90 315 20 45 30 60 20 40 50 240 187.5 410 420 420 420 2147.5 57.5 107 90 315 20 22.5 30 60 20 MP share (MW)

=

-

,

T E R I Report No. 2006RP23

360 Analysis and compilation of tariff orders

S.No. Power Station Jawaharsagar & Ranapratapsagar Station of Rajasthan (50% share) Hydro Power Station Total Mini/Micro Hydel Grand Total 895 3167.5 5.45 3172.95 897.5 3045 5.45 3050.45 Installed capacity (MW) 135.5 MP share (MW)

Source. http://www.mppgenco.nic.in/mpgenco-install-detail.htm

( = , H & 6 *6 (A4 4 9* T ,+T ;. < &J * CE *J 6 99 6 (A4 +*& (A =

L

* T

CE (A

,* 6

FY 2002-03 in retrospect

= +& ) = & ) CE CE - ($ / . + , +) &J *4 4 *J 6 = CE 6J 4 J & T T = &J * 3 CE CE

Consumption and access Sales/Demand estimation

C CE *J 64 = I 0 0 4 4 % % = 4 I 5 4 0 P G !

) , ++6 (@ =

= CE , * *J 6 -

=

T E R I Report No. 2006RP23

361 Analysis and compilation of tariff orders

Table 7.2. Sales for FY 2003-04, FY 2004-05 and FY 2005-06 (MU)

Proposed FY 2003-04 FY 2004-05 FY 2005-06 15996 16724 18022 Approved NA 16885 NA Actual 15996 17106 NA

Source: (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

C 3

5 4 ) -

4

)

0 I

0 = ;

(. J. = CE *J 6

5 *<

Category wise sales

&

Table7.3. Category wise sales

FY 2003-04 Consumer category Domestic/SLP Non-Domestic Water Works Industrial Agricultural Street Lights Total (LT) Railways Coal Steel Cement Irrigation/Water Works Other RE Co. Society Border Villages Total (HT) Total (LT+HT) Actual MU 3311 688 163 651 5,342 127 10282 1267 542 148 524 304 2487 440 3 5714 15996 Proposed MU 3614 736 169 708 5,342 133 10702 1353 564 176 524 316 2637 451 3 6022 16724 FY 2004-05 Approved MU 3809 736 169 709 5,342 133 10898 1335 564 176 524 316 2620 451 3 5987 16885 Actual MU 3755 805 195 678 5,320 124 10877 1392 544 248 498 327 2714 504 2 6229 17106 FY 2005-06 Proposed MU 4034 902 221 728 5,462 127 11473 1478 554 279 477 340 2894 525 2 6549 18023

Source: (i) Tariff order for FY 2004-05 & (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

= =

= *

T E R I Report No. 2006RP23

362 Analysis and compilation of tariff orders

Table 7.4. Share of each category in total sales (%)

Category Domestic/SLP Non-Domestic Water Works LT Industrial Agricultural Street Lights Total Source: (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org FY 2003-04 Actual 21% 4% 1% 38% 35% 1% 100% FY 2004-05 Actual 22% 5% 1% 38% 33% 1% 100% FY 2005-06 Existing 22% 5% 1% 38% 32% 1% 100%

- =

= &

3

. ;. 5$ & 9 (@ . 3 . . . )N 5$ 4= = 4 = * *&& (@ ,& = , = ) = = 4 6 6 D=

$

<

0

($ ) ,&6 -

C -

4 CE

&J * = - , 6 T 3 =

= 4 +& N

-

&+ 6* - , 6*T;,,* 0 P = -

N N 2$ E

< -

) 3

I

T E R I Report No. 2006RP23

0 =

-

363 Analysis and compilation of tariff orders 2 D= ) I 5 CE ) ;! ) < = P *J 6 5 = I = 6&* (@ = 4 0 4 .

!

C

, CE ,99 J9 CE 6J

=

50.0% Share in total sales 40.0% 30.0% 20.0% 10.0% 0.0% 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

= CE

Figure 7.1. Trend in agricultural consumption

Source. (i) Annual report (2001-02) on the working of SEBs and Electricity Departments by Power and Energy Division- Planning Commission, GoI, (ii) Tariff order for FY 2004-05 & (iii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

CE *6T

J ,4 T J & CE ,J && *T &,T

& T CE &J * CE *J 6 & T CE 6J G ! 0

T E R I Report No. 2006RP23

364 Analysis and compilation of tariff orders

Number of consumers and connected load

6 CE &J *4 CE *J 6 CE 6J

Table 7.5. Number of consumers

Consumer category Domestic/SLP Non-Domestic Water Works LT Industrial LT Industrial HT Agricultural LT Agricultural HT* Street Lights Total *Includes water works HT Source. (i) Compendium of Power Statistics, 2004-05, MPSEB (ii) Tariff order for FY 2004-05 (iii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org FY 2003-04 Actual 4643652 583519 15802 84740 2003 1098558 172 14508 6442954 FY 2004-05 Actual 4679213 591431 16331 82952 2029 1107082 181 14322 6493541 FY 2005-06 Projection 4805945 612251 16906 83322 2284 1158297 183 14562 6693750

CE &J * , 9&T 3 *4 CE = *J 6 9& 6 CE 6J 4

** 96* ) D

CE CE 6J

&J

Table 7.6. Connected Load (kW)

Consumer category Domestic/SLP Non-Domestic Water Works LT Industrial LT Industrial HT Agricultural LT Agricultural HT Street Lights Total FY 2003-04 Actual 1967503 687060 97153 766257 1863241 3162857 85720 48453 8678244 FY 2004-05 Actual 2056988 730514 100359 759459 1919219 3192143 87938 51244 8897864 FY 2005-06 Petition n 2134457 747322 102602 756346 1927237 3423823 88432 55521 9235739

*Includes water works HT Source. (i) Compendium of Power Statistics, 2004-05, MPSEB (ii) Tariff order for FY 2004-05 (iii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

T E R I Report No. 2006RP23

365 Analysis and compilation of tariff orders 3 Table 7.7. Mix of consumers and connected load in FY 2005-06

Category Domestic/SLP Non-domestic Water works and agriculture Industry Others Total FY 2005-06 Consumer mix 71.80% 9.15% 17.56% 1.28% 0.22% 100% Connected load 23.11% 8.09% 39.14% 29.06% 0.60% 100%

=

*Includes water works HT Source. ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

- =

0 0

-

! +

Table 7.8 Per consumer load (kW/consumer)

Consumer category FY 2003-04 Actual Domestic/SLP Non-Domestic Water Works LT Industrial LT Industrial HT Agricultural LT Agricultural HT Street lights Total *Includes water works HT Source. (i) Compendium of Power Statistics, 2004-05, MPSEB (ii) Tariff order for FY 2004-05 0.42 1.18 6.15 9.04 930.23 2.88 498.37 3.34 1.35 FY 2004-05 Actual 0.44 1.24 6.15 9.16 945.89 2.88 485.85 3.58 1.37

=

-

FY 2005-06 Petition 0.44 1.22 6.07 9.08 843.80 2.96 483.23 3.81 1.38

(iii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

= , &+ 0A4 0 -

( -

$

A

=

4

3 !

-

T E R I Report No. 2006RP23

366 Analysis and compilation of tariff orders T ,+T C = 4Street Lights 0.69% Agricultural 22% Non-Domestic 8.11% Domestic/SLP 18.04%

-

=

Water Works LT 1.07%

Industry

Figure 7.2. Contribution to revenue by major categories (FY 2004-05) Source. Tariff petition for FY 2005-06

50.46%

CE = T 9 = =

6J -

4 4 -

- = *9 **T 3

Table 7.9. Revenue per unit of sale for different categories

Rs/kWh Category Domestic/SLP Non-Domestic Water Works LT Industrial Agricultural Street Lights Total FY 2004-05 Actual 2.79 5.85 3.18 4.46 2.23 3.23 3.40 Rs/kWh FY 2005-06 Petition 3.09 5.64 3.12 4.39 2.15 3.48 3.42

; =

< -

-

Status of rural electrification

@ ; D F D E< $ %=D D F - ( $ + ) = *+ 0 E % 64 (

T E R I Report No. 2006RP23

367 Analysis and compilation of tariff orders

-

, ( $

Table 7.10 Rural household electrification

Total number of rural households 8124795 Households having electricity 5063424 % Electrified households 62.32 Unelectrified households 3061371 % Unelectrified households 37.68

Source: www.powermin.nic.in

= 6 ,, < = @ =

1

D F ( D E4 =

$

; ,

4 & ,6T;, *& ( $ $ ) !. )H(. < = CE J

Efficiency improvement Transmission & distribution (T&D) loss estimation

,, ($ ) = = - I = = 4 = JOJ= = -

Table 7.11. T&D loss reduction targets

FY 2002-03 % loss level (MPERC approved in FY 2002-03) Proposed loss in petition (FY 2004-05 & FY 2005-06)2 NA 44.20%% NA 43.95% 40.05% 43.08% 37*% NA Approved in tariff order (FY 2004-05) Actuals NA 43.99% 43.0% 40.50% 44% FY 2003-04 40% FY 2004-05 37% FY 2005-06 34%

Source. Tariff orders issued by MPERC * Stated by the MPERC in order for FY 2004-05

-

,,

0 = ) CE = *J 64 3 4 CE G ! J , = = *& +T )

G ! 4

-

6,T

Source: Ministry of Power website accessed on November 20,2 006 http://powermin.nic.in/bharatnirman/progress%20on%20electrification%20of%20villages% 20&%20households.pdf

1

The Board in its tariff petition for FY 2004-05 submitted that due to inadvertent mistake in the method of calculation, it was considering, reporting and owning T&D loss taking place outside the periphery of Madhya Pradesh, as its own loss. It further emphasised in this and rectified it in the petition for FY 2005-06. It further submitted that T&D loss excluding external losses was 42.55% in FY 2003-04 and 41.49% in FY 2004-05 and proposed 38.97% for FY 2005-06.

2

T E R I Report No. 2006RP23

368 Analysis and compilation of tariff orders ($ / . CE *J 6

Collection efficiency

($ / . CE & J , CE 6J G ! -

C

93.00% 92.00% 91.00% 90.00% 89.00% 88.00% 87.00% 86.00% 85.00% 84.00%

92.00% 91.20% 88.95% 86.70% 87.00%

2001-02

2002-03

2003-04

2004-05

2005-06

Figure 7.3. Collection efficiency Source. Tariff order for FY 2004-05 Website of MPERC: http://mperc.org/collec-eff-annu-0506.html

CE &J *4 = > = ($ . 4 9& * T

AT&C loss

G ) = $ $ !

Table 7.12. AT&C losses

FY 2002-03 % Discoms MP Poorva KVVCL MP Paschim KVVCL MP Madhya KVVCL Actual 34.05 43.41 51.13 FY2003-04 % Actual 42.68 45.66 57.06 FY 2004-05 % Actual 44.37 38.86 53.17 FY 2005-06 % Approved 31.7 35.5 41.6

CE

,J

CE B

*J 6 , =

=

-

Source. http://www.apdrp.com/apdrp/projects/about_apdrp.htm

)

! =

;( A !

?F )5< F ;$

G ) ?F )5< F CE J 4

T E R I Report No. 2006RP23

369 Analysis and compilation of tariff orders ) = 3 ; G ) ,&<

Table 7.13. AT&C loss targets approved by MPERC in order for FY 2006-07

FY 2006-07 Discoms MP Poorva KVVCL MP Paschim KVVCL MP Madhya KVVCL Approved (%) 32.5 30 37 FY 2007-08 Approved (%) 29.5 27.5 32 FY 2008-09 Approved (%) 26.5 25 27.5

Source. Tariff order for FY 2006-07

2 -

= 4 4 = 4 ,, 0F T ( , = ,* $ 4&

Metering

2

= 4

Table 7.14. Status of consumer metering (in lakhs)

Numbers FY 2004-05 FY 2005-06 64.92 64.92 Metered 46.50 46.50 Percentage metered 72 72

Source. www.powermin.nic.in

CE = CE J & 6 &T CE CE

*J 64

)

T<4

&J * ,J

&,T;&& T = & +6T CE &J *

DT failure rate

! CE 6J = ! ,6 CE *J 6

Table7.15: DT Failure/replacement rate (5)

Failure/Replacement of distribution transformers Discoms MP Poorva KVVCL MP Paschim KVVCL MP Madhya KVVCL FY 2004-05 19.13 21.99 25.31 FY 2005-06 17.49 12.65 22.18

Source: Website of MPERC. www.mperc.org

- = N

-

=

!

Fuel cost for own generation

CE ($ / . *J 64 ,+ 6T = CE ,* 9 ) &J *

T E R I Report No. 2006RP23

370 Analysis and compilation of tariff orders ) *J 64 , ($ / . , ) ) % = ,6 + &* ) " CE

6& ) ,6,, *6 ) = .$J . . - ($ ($ = &* ) -

)

.$ . .

=

,

=

Table 7.16. Fuel cost for power generation and units generated from FY 2003-04 to FY 2004-05

FY 2003-04 Actual Units generated (MU) Fuel cost for power generation (Rs Crore) 1250.77 1479.06 1578.30 1443.33 14523 FY 2004-05 Petition 14176 FY 2004-05 Approved 14977 FY 2004-05 Actual 15154

Source. Tariff order for FY 2004-05 Website of MPERC: http://mperc.org/collec-eff-annu-0506.html

=

,**& && ) = -

,

0

Table7.17. Source wise break up of generation cost (Rs Crore)

Details Fuel and related expenses ATPS Chachai STPS Sarni SGPTC Bir' pur Cost of water Cost of lubricating oil, consumables and chemicals Station supplies Other costs (entry tax etc) Cess of auxiliary consumption Generation cost 5.01 0.22 25.68 13.08 1250.78 6.10 0.2 30 12.85 1479.06 6.10 0.2 30 13.10 1578.33 6.10 0.2 30 12.90 1443.33 114.55 654.46 437.45 0.33 135.14 770.84 512.75 11.18 127.89 874.58 515.28 11.18 129.10 772.07 481.78 11.175 FY 2003-04 Actual FY 2004-05 Petition FY 2004-05 Approved FY 2004-05 Actual

Source. Tariff order for FY 2004-05 Website of MPERC: http://mperc.org/collec-eff-annu-0506.html T E R I Report No. 2006RP23

371 Analysis and compilation of tariff orders ($ D $ )5 ) 4 ) ,* + 9& ) 0 ($ / . CE > ,*66, 9, (@ ,*9* ) = ,6*++ (@ 9* 0 3 1 $ 5C = 2 13 ! = = ,+ 4 6J 4

Table 7.18. Details of PLF (%)

FY 2003-04 Actual ATPS Chachai STPS Sarni SGTPS Birsinghpr 45.9% 76.9% 69.5% 70.2% FY 2004-05 Approved 53.1% 75.2% 72.7% 71.5% FY 2004-05 Actual 47.2% 76.8% 74.3% 72.1% FY 2005-06 Proposed 50.4% 76.1% 74.4% NA FY 2005-06 Approved 50.7% 77.1% 74.8% NA

Source. Tariff order issued for MPPGCL and MPSEB by MPERC for FY 2005-06

= &J *

$ 5C CE

= ($ /< A . ) 4$ 2

*J 6 $ 5C .$ . .

CE

=

$ 5C < 2

; = 4

CE ) - ($ D ; $ )5 $ 2 $ . $ 2 . $ / D . 4 4 ($ D $ )5 = T *J 64 = G 3 (

=

= ($ )

-

I $( 64 % ($ / . = % = ,9 ( 9 +6T ! CE 3 ($ D $ )5 6J C CE 9 ,,T

*J 9 6,T

T E R I Report No. 2006RP23

372 Analysis and compilation of tariff orders

Table 7.19. Details of auxiliary consumption

FY 2003-04 Actual ATPS Chachai STPS Sarni SGTPS Birsinghpr 11.99% 9.09% 10.54% FY 2004-05 Approved 9.991% 8.92% 9.24% FY 2004-05 Actual 12.37% 9.15% 10.32% FY 2005-06 Proposed 12.02% 9.00% 9.95% FY 2005-06 Approved 11.997% 8.91% 9.79%

Source. Tariff order issued for MPPGCL and MPSEB by MPERC for FY 2005-06

) I )

3 ) = = = ( 0

CE 6J ($ D $ )5P )

3 - ) ($ D $ )5 3

= &- .

(

0 + 2 A+ ! C CE 3 &J * , 0) N 0A 4 = . 2 &, & 0) N 0A ($ D $ )5 9 0) N 0A 9&* 0) N 0A 0) N 0A C CE 6J 4 D N 0A . 2 ) . 2 +6 0) N 0A

C

A . 2 &, = = CE *J 6 . 2 ) &,, & &, 0) 3

Power purchase

= = ,

Table 7.20. Details of power purchase (MU)

Sources KTPS VSTPS-I VSTPS-II KGPS GGPS KAPP Inter regional power purchases Bilateral purchases Other sources Total Source. (i) (ii) (iii) Tariff order for FY 2004-05 ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org Tariff order issued for MPPGCL and MPSEB by MPERC for FY 2005-06 636 2107 14035 FY 2003-04 Actual 2672 2572 1881 1068 673 2426 2869 673 2641 15164 47.5 2364 13401 702 3409 15687 680 3,341 15972 FY 2004-05 Proposed 2610 2776 1935 860 800 FY 2004-05 Approved 2610 2776 1935 0 800 2869 FY 2004-05 Actual 2904 2895 2014 691 813 234 2024 FY 2005-06 Proposed 3229 3049 2186 840 788 633 1,226

-

T E R I Report No. 2006RP23

373 Analysis and compilation of tariff orders CE = *J 6 ,6 + (@4

, T =

Table 7.21. Details of power purchase (Rs Crore)

Sources KTPS VSTPS-I VSTPS-II KGPS GGPS KAPP Inter regional power purchases Bilateral purchases Other sources Transmission charges Net Source: (i) (ii) FY 2003-04 Actual 213 338 292 369 224 451 149 501 143 2680 FY 2004-05 Proposed 230 396 320 421 198 613 188 533 138 3039

FY 2004-05 Approved 230 396 320 82 198 613 2.14 455 126 2424

FY 2004-05 Actual 245 390 306 348 187 52 401 182 763 138 3013

FY 2005-06 Proposed 275 414 332 414 200 144 250 177 651 145 3002

Tariff order for FY 2004-05, ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org Tariff order issued for MPPGCL and MPSEB by MPERC for FY 2005-06

CE ) 4 *T

*J 6 = = I ; 6 +66

& ,& &*

< 4 &J * Table 7.22: Share of own generation in power purchase in total requirement (MU) Source Own generation Power purchase Total Source. (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org *Includes water works HT FY 2003-04 Actual 14523 14035 28558 FY 2004-05 Actual 15154 15686 30840 2005-06 Proposed 15492 15972 31464

4 *9 ,*T -

CE =

CE

*J 64

Trading and UI

( % 6 ) $ [email protected] $ & (@ CE @ 9& )

T E R I Report No. 2006RP23

( &J *

/ (@ CE *J ,+ 6

,*9 ) CE &J * ; * &9N 0A2<

,+ (@ CE *J 64

374 Analysis and compilation of tariff orders + @ (@ & ) ; & N 0A < -

Employee cost

/ CE *J 6 0 9&& ) CE &+ T &J * ) = ,

) CE , T 6J 4 = CE *J 6 = &

Table 7.23. Employee costs (Rs Crore)

FY 2003-04 Actual 988.99 FY 2004-05 Petition 1026.73 FY 2004-05 Approved 933.70 FY 2004-05 Actual 1036.41 FY 2005-06 Petition 1093.39

CE

*J 6

6 T =

-

Source. Tariff order for FY 2004-05 ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

Employee productivity

*

Table 7.24. Employee costs as a percentage of ARR

FY 2003-04 Actual EC as a % of ARR 15.35% 14.29% 15.08% 14.81% 14.83% FY 2004-05 Petition FY 2004-05 Approved FY 2004-05 Actual FY 2005-06 Petition

Source. Tariff orders issued by MPERC Petition submitted by MPSEB for FY 2005-06

$ = -

,*J,6T ( 6

=

Table 7.25. Employee cost per unit of sale (paise/kWh)

FY 2003-04 Actual 62 FY 2004-05 Petition 61 FY 2004-05 Approved 55 FY 2004-05 Actual 61 FY 2005-06 Petition 61

T E R I Report No. 2006RP23

375 Analysis and compilation of tariff orders

Source. Tariff orders issued by MPERC Petition submitted by MPSEB for FY 2005-06

-

6 -

) CE *J 64 = CE

= 6J 4 ,

C

* = " ; < ; <

4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

3.67 3.35

0A

3.02 2.62 2.54 2.37

FY 2003-04 (A)

FY 2004-05 (A)

FY 2005-06 (P)

Number of employees/1000 consumers Number of employees/MU sold

Figure 7.4. Trends in employee productivity Source. Tariff orders issued by MPERC Petition submitted by MPSEB for FY 2005-06 Note: Data for FY 2003-04 and FY 2004-05 is based on provisional accounts and FY 2005-06 is based on approved figures

- = = =

Table 7.26 Revenue per employee

Year FY 2003-04 FY 2004-05 FY 2005-06 No of employees 58774 57346 54392

= = = =

Revenue Rs Crore 5998 6148 6507 Actual Actual Petition

Revenue/employee Rs/Employee 1020600 1072088 1196242

Source. Tariff orders issued by MPERC Petition submitted by MPSEB for FY 2005-06

T E R I Report No. 2006RP23

376 Analysis and compilation of tariff orders

Repair and Maintenance expenses (R&M expenses)

CE G 3 ( &J * CE 6J /

Table 7.27. R&M expenses

FY 2003-04 Actual FY 2004-05 Petition FY 2004-05 Approved FY 2004-05 Actual FY 2005-06 Petition

S 157.32 391.79 261.79 264.63 360.51 o % of ARR 2.44% 5.45% 4.23% 3.78% 4.89% u rce: (i) Tariff order for FY 2004-05, & (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

*J 64 = CE &J * CE *J 6 & ,T ) 3 ) 3 = 3 3 3

CE

3 T 6J = 0 - 0 = ) & T

,6 T3 CE

G 3 (

G ( 0 4 3 D + ) - 0 = 0 0 &,, ) 3 5 &T = = ) = 5

G ! ) =

0-

6 ) 3 3 3 0

- =

T E R I Report No. 2006RP23

377 Analysis and compilation of tariff orders

C

6 3

G 3 ( =

;

=

<

400 300 MU 200 100 FY 2003-04 (A) FY 2004-05 (A) R&M 1.60% 157.32 264.63 2.42%

2.92% 360.51

3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%

FY 2005-06 (P)

% of GFA

Figure 7.5. R & M expenditure as a percentage of GFA Source. (i) Tariff order for FY 2004-05, & (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

= D C

G 3 ( = -

./ )

-

J&T

Administration and General Expenses (A&G expenses)

C CE 3 3 ) % CE &J * T CE CE & CE &J * CE 6J *J 64 G 3 D ; ) ) 4 ) < ** = = + ) CE G D = J &4 CE & = 3 6T *J 6 = 3 = G 3 D /

Table 7.28. Administrative & General expenses

FY 2003-04 Actual FY 2004-05 Petition 90.37 1.26% FY 2004-05 Approved 80.60 1.30% FY 2004-05 Actual 79.98 1.14% FY 2005-06 Petition 115.08 1.56%

A&G expense (Rs Crore)

A&G expense as a % of ARR 1.27% 82.23*

Source. (i) Tariff order for FY 2004-05, (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org * The ARR submitted in FY 2005-06 shows this amount to be Rs 68.85 Crore and the same has been taken to calculate the total actual ARR for FY 2003-40 in this analysis

T E R I Report No. 2006RP23

378 Analysis and compilation of tariff orders . CE = G 3 D 6J = & T G 3 D , T + +6) 4 ($ ) CE = C *J 6 -

=

2.00% 1.50% 1.00% 0.50% 0.00% FY 2003-04 (A) FY 2004-05 (A) 1.07% 1.14% % 4.29 4.68

6.39

1.56%

7.00 6.00 5.00 4.00 3.00 2.00 1.00 -

FY 2005-06 (P)

% of ARR

per unit of sale

Figure 7.6. A&G expenses as percentage of ARR and per unit of sale (paise/kWh)

Source. (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

G 3 D N 0A CE &J * G 3 D = /

= * 9 6J ;

N 0A

CE

CE

< , 6*T -

= &J * ,, T CE 6J

&9

G 3 D

Total operating expenditure (Employee costs, R&M expenses and A&G expenses)

H % G 3 D = ( 4 9 HG 3 ( = = 3 4 G 3 (

Table 7.29. Operating expenditure over the years FY 2003-04 Actual FY 2004-05 Petition FY 2004-05 Approved FY 2004-05 Actual FY 2005-06 Petition 1568.98 21.29%

O)&M Expenditure (Rs Crore) 1214.96 1507.62 1276.09 1381.02 O&M expenditure as % of ARR 18.86% 20.98% 20.61% 19.73% Source. (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org T E R I Report No. 2006RP23

Paise/kWh

379 Analysis and compilation of tariff orders HG 3 ( ,+ + T CE = &J * ,9 &T CE ,+J *J 6 T

Depreciation

* &J * ;. ) = 3 6 ,+ ) < 4 ,9*+ 0 L 0 = / = . 5 ) = 9 T I ) 0 = - I 5 * +6T ) / = 0 CE *J 64 0 CE ,J < >) 4 = ($ / . 0 = 0 4/ ) CE *J 6 * +6T CE

) -

;

CE

& 6J

=

CE

&J *

Table 7.30. Details of depreciation from FY 2003-04 to FY 2005-06 (Rs Crore)

FY 2003-04 Actual 476.20 Basis FY 2004-05 FY 2004-05 FY 2004-05 Petition Approved Actual 502.18 502.18 533.41 Norms issued under E(S) Act, 1948 FY 2005-06 Petition 599.25

Source (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

- ($ / . *J 6 = =

CE

T E R I Report No. 2006RP23

380 Analysis and compilation of tariff orders

Investment in transmission and distribution segments

($ % = 0 J = / = ! G$ C) 0 6 = &,

Table 7.31. Snapshot of transmission network

Particulars Transmission line Voltage (KV) 400 220 132 66 400 220 132 66 (Ckt.KM) 1723.51 6740.71 9842.54 61 2314.31 6880.22 10055.04 61 EHV substations No. 4 28 138 1 4 33 139 1 MVA 2940 7730 9799 20 3255 8530 10007.5 20

-

= ) 0

-

I

!/4

($

&, (

As on 31st March 2004

As on 31st March 2005

Source. (i) Tariff order for FY 2004-05 (ii) Transmission Tariff order for FY 2005-06

3 &

-

CE

6J

Table 7.32. Transmission capacity addition plan

Rs Crore Particulars of works 400kV Lines 400kV S/s 220kV Lines 220kV S/s 132kV Lines 132kV S/s Total Tied up works 7.90 173.30 67.63 107.35 95.42 451.60 2005-06 (Proposed) Rs. Crore Un-tied up works 2.10 1.16 7.65 10.91 Rs. Crore Total 7.90 175.40 68.79 107.35 103.07 462.51

Source. Transmission tariff order for FY 2005-06

Capital expenditure

&& CE 3 ,J CE &J *

T E R I Report No. 2006RP23

381 Analysis and compilation of tariff orders

Table 7.33. Capital expenditure

FY 2001-02 FY 2002-03 Particulars Generation Transmission & distribution Total Rs. Crore Actual 24.8 29.41 54.21 Rs. Crore Actual 17.65 74.05 91.7 FY 2003-04 Rs. Crore Proposed 304.2 445.48 749.68

Source. Tariff order for FY 2004-05

3 CE = ,J CE 9 *, ) J &4 *+) , ( $

9 * 6) 6) 4 D=

Sources of funds

( !/ ; < ( ( $ H "+ ; $ $ ! < ? ( $ $ = ! = 4 . G $ ($ = & = & ) & > ,6 ) 4 4 & 6&T $ $ ! $ 4 D ($ ) (. N $ !C ! ";< = $ ! ! @.[ = 4 !/ @. ,6 [ 4 !C ! ) 4 4( 4 ($$ -

, 9+ ) C ($

400.00 Rs Crores 300.00 200.00 100.00 Madhya Kshetra (11)

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Paschim Kshetra (12) Poorva Kshetra (19)

Amount Sanctioned

Amount Utilised

% of Work Completion

Figure 7.7. Circle wise status of APDRP scheme Source. www.apdrp.com

T E R I Report No. 2006RP23

percentage

382 Analysis and compilation of tariff orders

Interest and finance charges

($ / . CE +* ) 5 ,) = = = ) , * 6) ) ) $ C) = *9 6 ) CE CE &* = &J * CE J & CE &J * = 3 &J * 6&9 + ) & 9* ) 0 CE *J 6

4 & 6) ) 5 )4 2!C) ) C , 9) 4 = = $ C) =

2 C +& ) ) / & T = =

*J 6

Table 7.34. Interest and finance charges (Rs Crore)

FY 2003-04 S. No 1 2 A B C 2 3 4 5 6 7 Details Govt. borrowings Other borrowings PFC REC Others Total (Other borings) Interest disallowed on overdue components and regulatory asset Finance and bank charges Total Less capitalisation Net interest and finance charges 92.47 941.48 -401.7 539.78 59.96 644.43 -274.96 369.47 59.96 444.38 -189.60 254.78 163.04 270.46 353.72 787.22 126.23 0 351.23 477.46 114.11 0 351.23 465.34 174 Actual 61.79 FY 2004-05 Proposed 107 FY 2004-05 Approved 93.08

Source. Tariff order for FY 2004-05 T E R I Report No. 2006RP23

383 Analysis and compilation of tariff orders = 4 = CE &J * CE 6J ) - ($ / . +T &6 =

Table 7.35. Interest and finance charges from FY 2003-04 to FY 2005-06 (Rs Crore)

FY 2003-04 Actual 539.78 FY 2003-04 Actual 660.74 FY 2004-05 Petition 369.47 FY 2004-05 Approved 254.78 FY 2004-05 Actual 451.88 FY 2005-06 Petition 525.38

Source. (i) Tariff order for FY 2004-05, & (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

CE = &J *B = 4 - ($ )

CE

*J 6

Bad debts and prior period charges

3 & CE &J * CE 6J

Table 7.36. Details of bad debts (Rs Crore)

FY 2003-04 S. No 1 2 3 4 Details Bad debt written off/provided for Miscellaneous losses and wrote off Net prior period credit/charge Total Actual 301.18 1.44 -21.87 280.74 FY 2004-05 Proposed 175 1.44 -21.87 154.56 FY 2004-05 Approved 20.5 1.44 0 21.9

Source. (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

CE =

*J 64 J

) -

N

= =

6) ($ / . P

= ($ / . &6T4 = CE *J 6 * ) CE &*T &&T &9 ) 6J

Statutory return

C ) CE *J 64 3 ($ / . ,&* *& ) = -

T E R I Report No. 2006RP23

384 Analysis and compilation of tariff orders CE 6J ,6 & ) , 6 &+ ) CE

6J C3

I 2

= 4 3

CE CE

6J 6J

4

Total Annual Revenue Requirement

= ($ / . & CE &J * CE 6J

Table 7.37. Total ARR of MPSEB from FY 2003-04 to FY 2005-06 (Rs Crore)

Items Power purchase cost Fuel cost for power generation Employee cost Repairs and maintenance cost Administration and general expenses Interest & finance charges Depreciation Provision for doubtful debts Statutory return/ Return on equity Total expenditure 137.09 6442.93 134.43 7186.05 134.43 6191.08 152.36 6999.30 175.38 7374.41 23.33 154.56 21.90 23.97 24.06 660.74 476.20 369.47 502.18 254.78 502.18 451.88 533.41 525.38 599.25 68.65 89.10 80.60 79.98 115.08 157.32 391.79 261.79 264.63 360.51 1250.77 988.99 1479.06 1026.73 1578.30 933.70 1443.33 1036.41 1479.06 1093.39 2679.84 3038.73 2423.40 3013.33 3002.30 FY 2003-04 Actual FY 2004-05 Petition FY 2004-05 Approved FY 2004-05 Actual FY 2005-06 Petition

Source: (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

= + ,6T ($ ) *J 6 6J = 6 9T = CE &J * CE 4

-

) 2 ,,&T = 4

CE = =

*J 6 4 CE

($ / . CE *J 6 CE ; CE *J 6<

,9T = *J 6 C J + = <

T E R I Report No. 2006RP23

385 Analysis and compilation of tariff orders

7600.00 7400.00 7200.00 7000.00 6800.00 6600.00 6400.00 6200.00 6000.00 5800.00

7374.41 6999.30

6442.93

FY 2003-04 (A)

FY 2004-05 (A)

FY 2005-06 (P)

Figure 7.8. Trend in ARR (without subsidy and non tariff income)

Source: (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org *A- Approved P-Proposed

Tariff rationalisation Approach to tariff determination

) ! 4 CE S ) 4 & = *J 6 . 4 4 ) P 0 = = 0 4

= S ) = = ) 5 .

I 4 . P 4 = S ) = . = &+ P % )

=

0 =

)

T E R I Report No. 2006RP23

386 Analysis and compilation of tariff orders

Table 7.38. Category wise cost of supply for FY 2004-05

Categories FY 2004-05 CoS Petition Rs./kWh 4.9635 4.9635 4.9635 4.9635 4.9635 4.9635 1.7492 2.0736 2.0736 2.2899 2.2899 1.9792 2.2899 CoS Approved Rs./kWh 4.2525 4.2525 4.2525 4.2525 4.2525 4.2525 1.6906 2.0041 2.0041 2.1704 2.1704 2.0469 2.1704 2.1704 2.93 4.91 2.18 3.42 4.49 5.14 3.68 4.51 6.86 4.70 2.00 2.52 Average tariff Approved Rs./kWh 3.14 5.85

LT

Domestic/SLP Non-Domestic Water works Industrial Agricultural Street lights

HT

Railways Coal mines Mini steel plants Cement Irrigation/Water works Other HT consumers RE Co. Society

Border villages 2.2899 Source: Tariff order for FY 2004-05

= *J 6

= & N 0A

-

($ ) CE *& N 0A

CE

6J 4 = J 2 = -

)

3 4

-

= 4

= =

=

= D ($ 3 = ($ / . - 0 ! = 0 3 4 - = 4 = 4 ($ / . ) 3 -

D ($ 4 D ($ = = = = 4 4 %

= = 3 2 =

=

T E R I Report No. 2006RP23

387 Analysis and compilation of tariff orders . CE 2 ) H 3 4 D -% 4 4 ) N - 0 = CE 4 = 4 6J ) 6J ) 4 4 0 $ -

Category wise average tariff:

C 9 CE &J *4 *J 6 = CE 6J

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

me s ti c/S LP LT n-D om es tic Ag r ic ul t ura l Ind us tria l ts W ate rW or ks et L To tal i gh St re

Do

No

FY 2004-05 Actual

FY 2005-06 Existing

FY 2005-06 Proposed

Figure 7.9. Category wise average tariff Source. (i) Tariff order for FY 2004-05 (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

T = CE = 64 ) = &* N 0A = 6J ) = = -

3

CE

*J

*J 6 &J *

& &N 0A

CE CE

T E R I Report No. 2006RP23

388 Analysis and compilation of tariff orders

Tariff rationalisation and new initiatives in tariff design

( I 3 6T 0 = - > $ 3 =

= ) * CE A

L *J 6 = J J

=

-

= "

-

6 ; ( =

S 5 < S 5 I J 3 4 P = =

P & P

0 N -

J

0

3 -

+ 9 , .

3 0A -

0 5

H -

= " # % # # " # % " 2 2 *J 64 H!

#2 # = 4 H!

"3 3

CE ,& T 0 0 H!

;

6$ ( , $ (< . , T 0 J ( 3 < )

-

9 T 0 H!

;, $ ( H! 0

& T

,6T-

T E R I Report No. 2006RP23

389 Analysis and compilation of tariff orders

= ) = CE 6T

2.

-

6T 0 =

6J

4

)

-

(

%

# # ! ( N

= ! ;6 0 <4 ;&

($ ) E N = -

0 D ;6 < ($ ) ";<( ) 4

< A - ) )

)

. 4; < 0

4 P 4 ; =<

; <

= ) CE 9J, ; = CE J + (E J 9

CE < CE =

& *J 64

# -

"

= =

($ / . ) J = = I = = ) L CE 2 J / = 4 4 =

L = J = D ($

= 4 = =

T E R I Report No. 2006RP23

390 Analysis and compilation of tariff orders

Cross subsidy

) = = = ( = &9 * $ = -

Table 7.39. Trend in cross subsidy based on average costs (Cross subsidy= Average tariff/Average cots) (%)

Categories LT Domestic SLP Non-Domestic Water Works Industrial Agricultural Street Lights HT Railways Coal mines Mini Steel plants Cement Irrigation HT Water Works HT Other HT consumers RE Co. Society Border Villages Cross subsidy FY 2004-05 Cross subsidy FY 2004-05 Cross subsidy FY 2005-06

Approved

85% 92% 160% 80% 134% 59% 93% 122% 140% 97% 123% 187% 71% 128% 54% 68%

Actual

79% 86% 149% 75% 125% 56% 87% 115% 131% 91% 115% 175% 66% 119% 51% 64%

Existing

78% 80% 142% 79% 123% 53% 88% 112% 121% 79% 105% 247% 69% 120% 51% 63%

T E R I Report No. 2006RP23

391 Analysis and compilation of tariff orders

Table 7.40. Trend in cross subsidy based on voltage wise cost of supply (%)

Cross subsidy Categories FY 2004-05 Approved Cross subsidy FY 2004-05 Actual Cross subsidy FY 2005-06 Existing

LT

Domestic SLP Non-Domestic Water Works Industrial Agricultural Street Lights HT Railways Coal mines Mini Steel plants Cement Irrigation HT Water Works HT Other HT consumers RE Co. Society Border Villages 73% 79% 138% 69% 115% 51% 80% 266% 256% 177% 208% 317% 120% 229% 92% 115% 64% 69% 121% 61% 101% 45% 71% 222% 233% 161% 181% 275% 104% 188% 80% 100% 63% 65% 116% 64% 100% 43% 72% 214% 211% 138% 161% 381% 106% 184% 78% 97%

Note: Category wise CoS for FY 2003-04 is not available

. ) . - = C )

CE = 4 4 ) CE = = -

6J = 4

= - = C

CE

&J *

CE

*J 6

2 =

*J 6 = 4 -

CE 3 = -

6J

T E R I Report No. 2006RP23

392 Analysis and compilation of tariff orders

Convergence Index (CI)

C CE , &J * ) CE 6J ( $

0.5000 0.4000 0.3000 0.2000 0.1000 -

0.3859

0.4501

0.3598

0.2988

0.2686

FY 03-04 (A) FY 04-05 (E)

FY 04-05 (App)

FY 05-06 (E) FY 05-06 (P)

Figure 7.10. Convergence Index Source. TERI calculations A : Actual, E : Existing, App : Approved, P : Proposed

C

, &J * CE 6J 4 ) ) 4 6 CE 6J

)

(

$ CE

CE 6J

= =

CE

*J

Subsidy support from Government

*, D ($ L = =

Table 7.41. Subsidy support from government (Rs Crore)

FY 2001-02 Particulars Balance subsidy due from previous year Subsidy due for the year Total subsidy receivable Total subsidy received Balance subsidy receivable 543 2023 1676 348 668 1016 851 165 890 1055 1049 6 778 784 778 6 661 667 667 1480 348 165 6 6 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06

Source. (i) ARR proposal as filed by MPSEB (ii) Website of MPERC, www.mperc.org

CE &J *4 +9 ) ) 6J 4

D= = C ,, J

-

=

CE , T ,) -

- D ($ , *9 ) *J 6 = CE

,,+T + CE = 6J

D ($

CE ,99 J9

T E R I Report No. 2006RP23

393 Analysis and compilation of tariff orders CE CE *J 6 CE 6J &J *

1000 Rs. Crores 800 600 400 200 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Figure 7.11. Trend in subsidy received Source: (i) Annual report (2001-02) on the working of SEBs and Electricity Departments by Power and Energy Division- Planning Commission, GoI; (ii) ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

CE

120.00 100.00 80.00 60.00 40.00 20.00 -

/ 6J

- = 4 / CE =

. ,J C

D= ,

= = =

104.50 78.58 22.75 25.43

Rs. Crores

21.30

2001-02

2002-03

2003-04

2004-05

2005-06

Figure 7.12. Capital grant

Source. ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

) CE 6J

CE

,J

Revenue gap

6J * = CE &J * CE

T E R I Report No. 2006RP23

394 Analysis and compilation of tariff orders

Table 7.42. Revenue gap

FY 2003-04 Details Total revenue requirement (Rs Crore) Total revenue (Rs Crore) Revenue gap (Rs Crore) Revenue gap (%) Actual 6269.30 5998.47 -270.83 -6% FY 2004-05 Actual 7051.57 6147.99 -903.57 -18% FY 2005-06 Proposed 7485.80 6873.90 -611.90 -10%

Source. Tariff order for FY 2004-05, ARR proposal as filed by MPSEB, Website of MPERC, www.mperc.org

= * 9 &6 ) = 0 = CE *J 6 =

+& ) 4)

CE

&J

=

= CE &J * L CE 0 3 C Q 3 ) J 3 0 2 4 5 3 = ) ) = 4 ) CE 4 R 4 5 L 4 5 = = I = 0 I 04 -

CE =

J & 4

4 ,N 6

0

-

&J *

CE I

*J 6

=

- -

Governance Timeliness of tariff orders

) ,4 6 ! CE 4 *J 6 * , 4 *4 CE 6J > 4 ( 94 64 , , 6 -

T E R I Report No. 2006RP23

395 Analysis and compilation of tariff orders ) 4 & , = -

Public participation

CE ) *J 64 ) CE / CE 6J 4 N 4 ) ) N-% = * = = , * &J * = CE 66 -% *J 6

) ) - =

= -

.

=

Staffing

= ($ ) ) I ) 0 = = ($ ) =

Status of directives issued by MPERC

) = ) / = . " ; <( ;-< ; < ; <$ ; <. ; <( ; < ; <( ;< ;%< ;0< ! = = H CE = ) = = = 6J = =

=

G 5 ! = / $ J,6 ; = = = I < ) F $ $

T E R I Report No. 2006RP23

396 Analysis and compilation of tariff orders ;<) ; < ; < ; < ; < ) = = = ) = I CE J

) = 2 = 4

- . (.

Studies undertaken

% = *&

Table 7.43. Studies undertaken by MPERC

S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Purpose of study Investigation regarding depreciation, interest and finance charges claimed by the Board To verify that the expenditure items listed by MPSEB for FY-03 & FY-04 Study of load factors of HT/LT industries in the State of M.P. Assist Generation Tariff Determination In the matter of terms of reference for appointment of an investigator to look into the matter of coal shortages To assist the Commission on the issues related to metering and energy accounting To assist the Commission on the issues related to metering and energy accounting To assist the Commission on the issues related to metering and energy accounting Investigation of Employees Expenses incurred by Licensees and Generating Company 124 days Three months Three months Three months Two months Two months Five months One month Period One month

0

-

($ )

($ )5 $

5

C

.

6

Consumer advocacy and redressal mechanism

H * * - I ) H < . 4 * ; D = C ) ( C $

)

T E R I Report No. 2006RP23

397 Analysis and compilation of tariff orders ) ! -

-

-

-

H = H . ) 6 0 = 3 I

* ; < = H 4 ) C 6;

) & C I B P L 0 = H = 4 6 0

H H -

D ($ ! ;! < ; ( &, 4 < ! = = -

I 4 ) 5 = )

**

Table 7.44. Details of the cases addressed by the Consumer Redressal Forum

Distribution Company Poorv Kshetra Paschim Kshetra Madhya Kshetra Complaints pending on the beginning of the year 124 45 301 Complaint received during the year 1211 722 723 Complaint settled during the year 1141 651 813 Complaint pending as on 31.3.2006 194 116 211

Source. MPERC

Cases and appeals

($ ) , F0 ) ($ ) F ) = = = .

T E R I Report No. 2006RP23

;@ ( $

D $ 4 ?

5

<= F 3

= )

( -

$

398 Analysis and compilation of tariff orders ) ,T 4 N N . +4 43 = / 3 =

( $( ($ )

?

F

F <

)

5 -

=

($ ) ;> ,4 4 2F * , J6 ) 4 > ,4 2F64

-

6* ( &,4 -

& ) 3 ($ ) 3 -

H . CE = 0 ) 0 H . P &, & 6J

6J

3 3

) -

)

!

)

-

4

Directives issued by the state government

! = . D=

-

!

$ 5 9 .

.

. 3

. )

$ = ,, T .

,, T )

.

.

T E R I Report No. 2006RP23

399 Analysis and compilation of tariff orders

. = -

D= . . . H = J. C , + J =

= = = . D= 4 J . J ) 3 J 4 4 4 9 % &" I

,

($ ) = 3 = -

&

)

Anti theft measures

J - 4 0 I J H 5 = 0 2 0 = 4

Open access

) 6 = *6 >

Table 7.45. Phasing of open access

Phases I II III IV V VI VII Customer category Users requiring 10 MW or above at 132 kV Users requiring 5 MW or above at 33 kV. or above and situated in industrial growth centers Users requiring 2 MW or above at 33 KV. or above and situated in industrial growth centers Users requiring 5 MW and above and situated anywhere in state Users requiring 1 MW and above and situated in industrial growth center Users requiring 2 MW and above and situated anywhere in state Users requiring 1 MW and above and situated anywhere in state From October 1st, 2007 From April 1st, 2007 From October 1st,2006 From April 1st, 2006 October 1st, 2005 Date of open access From 16th June 2005 From 16th June 2005

T E R I Report No. 2006RP23

400 Analysis and compilation of tariff orders 4 H - 9* 2 = 4 ! CE $ 6J ,& ?F N 2 && 0F

1

-

Availability of regulated entity related information

( = , D D & D J $ $ $ 4 ! = != ) 5 5 = $ ($ ) ! ) G J ($ ) 0 5 T

@ J(

* ) 6 )

) $ . + $ 9 K $ . ! , ) J $ ! ,, $ ! = $ ; $ $ ! < , $ ! = $ ,& ) J A 0J $ $ $ ! ,* ! C ! N H D @ ,6 / 0 ! , ! ! UC N , @ J ) - = 3 0 ) ( . ) 0

.

0

The Draft National Tariff Policy sates that cross-subsidy surcharge shall be computed as the difference between (i) the tariff applicable to the relevant category of consumers and (ii) the cost of the distribution licensee to supply electricity to the consumers of the applicable class. The draft policy states that in case of a consumer opting for open access, the distribution licensee would be in a position to discontinue purchase of power at the margin in the merit order. Accordingly, the cost of supply to consumer for his purpose may be computed as the aggregate of (a) the weighted average of power purchase costs (inclusive of fixed and variable charges) of top 5% power at margin in the merit order approved by the SERC adjusted for average loss compensation of the relevant voltage level and (b) the distribution charges determined on the principles as laid down for intra-state transmission charges.

1

T E R I Report No. 2006RP23

401 Analysis and compilation of tariff orders

Regulations notified by MPERC

Table 7.46. Regulation notified by the MPERC

Regulation MPERC (Methods of Recruitment and Condition of service of Officers and employees Regulation' 2001) MPERC (Recover of Expenses & other charges for providing electric line or plant used for the purpose of giving supply) Regulations, 2006 Electricity Supply Code 2004 Establishment of Forum and Electricity Ombudsman 2004 MPERC (Establishment Of Forum And Electricity Ombudsman for Redressal of Grievances of the Consumers) Regulations, 2004 (2nd Amendment). Procedure for application for License 2004 Other Business of Transmission Licensee 2004 Appointment of Consultants State Advisory Committee 2004 Distribution Performance Standards 2004 Transmission Performance Standards 2004 MPERC (Transmission Performance Standards) Regulations, 2004 Conduct of Business Regulation 2004 Amendments in MPERC (Conduct of Business) Regulation, 2004 Condition of Transmission License 2004 Amendments in "The Conditions of Transmission License for Transmission Licensee (including deemed Licensee) Addendum to Conditions of Transmission License for Transmission Licensee (Including Deemed Licensee), 2005 (Second Amendment- of 2005) Condition of Distribution License' 04 Procedure for Filing Appeal before Appellate Authority 2004 Levy and collection of fee and charges by SLDC, 2004 Security Deposit Regulation 2004 Eligible Criteria and Grant of trading license, the duties & the terms and condition of trading license' 04 Power Purchase & Procurement Regulations, 2004 MPERC (Power Purchase and Procurement Process) Reg.' 04, Revision-1, 2006 Fees, Fines & charges Regulation MPERC (guidelines for Reporting of regulatory Compliance) Regulation' 05 MP Electricity Grid Code 2004 (MP Electricity Distribution code and Transmission Metering Code) MPERC (Manner of service and publication of notice) Regulation' 04 MPERC (Methods and Principles of Fixation of Charges and Sec - 45(2) (3) 15th April 2005 Sec - 130 31st December 2004 Sec - 86 20th August 2004 Sec - 86(1) (g) read with 181 Sec - 86(i) (k) & 181(1) 14th February 2005 13th May 2005 Sec - 86(1) (b) & (g) -do26th November 2004 10th April 2006 Sec - 16 Sec - 127 Sec - 32 Sec - 47 Sec - 52 30th July 2004 17th September 2004 1st October 2004 1st October 2004 15th October 2004 -do28th October 2005 Sec - 16 -do30th July 2004 26th July2005 Sec - 92 -do30th July 2004 26th July' 2005 Sec - 43, 47 (1) & (4), 50 Sec - 42 (5), (6), (7) sub-section (5), (6) & (7) of Section 42 read with clauses (r) & (s) of sub-section (2) of section 181 Sec - 15(1) (2) Sec - 41 Sec - 91(4) Sec - 87,88 Sec - 57, 58, 59 Sec - 57,58, 59 -do4th June 2004 11th June 2004 2nd July 2004 2nd July 2004 16th July 2004 23rd July 2004 17th November 2005 16th April 2004 30th April 2004 1st September 2006 Sections 46 of the EA 2003 (no. 36 of 2003) 20th November 2006 Applicable Section Sec - 84, 85,89 & 91 Gazette Notification Date 2nd November2001

($ )

=

-

*

T E R I Report No. 2006RP23

402 Analysis and compilation of tariff orders

Regulation Schedule of Miscellaneous Charges Recoverable by Distribution License for supply of electricity) (In short Method and principles of Fixing Electricity Charges) regulation ' 2005 MPERC (Terms & Conditions for Intra State Open Access in MP) Regulations2005 MPERC (Power purchase and other matters with respect to conventional fuel based captive power plants) Regulation' 2006 MIS Regulation 2004 Details to be furnished by Generating Companies and Licensees for Determination of Tariff 2004 MPERC (Methods & Principles for Fixation Of Charges Including Miscellaneous Charges Recoverable By Distribution Licensee For Supply Of Electricity) Reg.' 06 Procedure for Calculating Expected Revenue from Tariff & Charges, Reg' 2005 MPERC (Terms and Conditions for Determination of Genco. Tariff) Regulations' 2005 MPERC (Terms and Conditions for Determination of Tariff for distribution and retail supply of electricity) Regulations' 2005 MPERC (Terms & Conditions for Determination of Tariff for distribution and retail supply of electricity and methods and principles for fixation of charges) Regulations, 2006 MPERC (Terms and Conditions for Determination of Transmission Tariff) Regulations' 2005 Madhya Pradesh Electricity Distribution Code' 2005 Sec - 61, 62(5) 4th January 2006 Sec - 61, 62(5) 16th December 2005 Sections 45 and 61 read with Section 181(2) (zd) 26th October 2006 Sec - 61, 62(5) 5th December 2005 Sec - 61, 62(5) 5th December 2005 Sec - 61, 62(5) 28th September' 2005 Sec - 62(5) 25th February 2006 Sec - 62 (2) & 181(2) Sec - 62(2), 64(1) 30th April 2004 13th August 2004 Sub-Sec (b) of Section 86 18th September 2006 Sec - 39(2) (d) 40 (c), 42 (2) (3) & 86 (1) (c) 24th June 2005 Applicable Section Gazette Notification Date

Power sector rating

( $ *4 CE *J 6 = CE 6J $ 4D 4( CE &J

Table 7.47. Power sector rating

FY 2003-04 Rank Score 17 24.75 FY 2004-05 19 24.75 FY 2005-06 20 21.97

0 6J 0 ' . )

T E R I Report No. 2006RP23

, ($

CE

&J *

CE

7 ( $

403 Analysis and compilation of tariff orders . = @ B 0 . ) J -

! = 5 *& C = 2 G ) *J 6 =

- ($ / . 3 *J 6 ) J *J 6 = +& = = 6 . + &J * B /

Conclusion

( ,99+ D ( !C ! = *J 6 = &J *4 = J> *J 6 = T ,+ 6 T = CE 0 *J 6 ,& 6T CE 6J 9& * T CE = ($ )4 ++ 96T CE 9 &) = 4 ) *& +T CE = !/ 4 0 !/ ) = ( $ $

T E R I Report No. 2006RP23

404 Analysis and compilation of tariff orders P = @ = 3 = -

T E R I Report No. 2006RP23

405 Analysis and compilation of tariff orders

CHAPTER 8 Maharashtra

Introduction

> / ( 64 ;(. /< . D= 5 D ( ./ 3 . ( > (. / 5 ) ! ) 5 64 "

(. / 2 ) ( . $ ;(. D $ )5< ( . 5 ;(. )5< ( . ;(. !)5< ( 7 .- . G / . J $ = ( ( ,999 . (. / = > CE , 4 J , ; ) ( -

)

(. / =

-

$ ) 5 ; $ )5<4 / / ( . ;/. .1 < ;/ . < $ )5 /. . = 0 ( = J ( ) J = . 5 ) ) ) ,9994 ( ) ( 64 CE ,999J = (. / CE &J *2 - I 4 0 > CE - ( 4 CE 6< ,J ) *J 6 CE < < 4 ,99+ ;

!

6J - I H J -

,4

&

;

4(

) =

(. !)5 3

CE

1 2

BSES is now known as Reliance Energy Limited (REL) Though the final order for FY 2003-04 came out in March 2004, the operative part of the order was effective from December 1, 2003.

T E R I Report No. 2006RP23

406 Analysis and compilation of tariff orders CE *J 6 (. / (. !)5 CE 6J (. !)5 CE J

1

4

4 = (. / CE &J * (. !)5 2 = 4 CE J H = CE 6J A = 0 *J 6 CE 6J 4 = ) ) CE *J 6 CE 6J CE J = 4 = 0 CE J 4 CE &J * CE = (. / CE CE *J 6 6J = 0 *J 6 ; = - < -

C

CE &J *

J CE CE -

=

Demand supply gap

( ,& *T ,+ ,T CE CE J & 6J $ 0 & ,T CE 6J CE J & ,9 +T

Movement in installed capacity

/ = (A = +, ) D CE . J , <4 ( ;)D < . = CE 6J & *9 (A = , ,+9 (A ; &,+

In the tariff order for FY 2006-07, the MERC has stated that it has analysed the expenditure and revenue of MSEB for FY 2004-05 in accordance with the principles enunciated in the FY 2003-04 tariff order. It has considered the audited financial statements of MSEB for approving such expenses and revenues that do not have specific principles mentioned in FY 2003-04 Tariff order. Similarly, in FY 2005-06, MERC has determined the ARR for FY 2005-06 based on FY 2003-04 tariff order principles and the review of auditors (since the annual accounts of MSEDCL for FY 2005-06 are still to be published)

1

T E R I Report No. 2006RP23

407 Analysis and compilation of tariff orders

Table 8.1 Installed capacity by ownership (MW)

Particulars State sector Share in Pench project in MP Private sector Total state and private sector Share in Central sector stations FY 2000-01 9690.19 53.38 3167.54 12911.11 2027.90 FY 2001-02 9690.19 53.38 3330.76 13074.33 2027.90 3409.80 13180.37 2027.90 3409.80 13182.37 2027.90 3461.52 13274.09 2027.90 3648.92 13838.34 2318.39 FY 2002-03 9770.57 FY2003-04 9772.57 FY 2004-05 9812.57 FY 2005-06 10189.42

Total Capacity available 14939.00 15102.00 15208.27 15210.27 15301.99 S O U R C E Indian Electricity Scenario, Power Sector Profiles, Maharashtra power sector profile, Ministry of Power, Government of India available at http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp

16156.72

(

= ) D ,T ( CE J , CE 6J

) D

T

= ) D =

, , (A 0

, T CE (. / ( 6 (A C (

= (. / J , CE 6J P +, = H -

Private Sector 23%

Share in Central Generating Sources 14%

State Sector 63%

Figure 8.1 Source wise break up of installed capacity (October 2006)

SOURCE

Indian Electricity Scenario, Power Sector Profiles, Maharashtra Power sector

profile, Ministry of Power, Government of India

0

. - + 3

C <

+

= (. /N (

;

Table 8.2 Generation over the years

Net Generation of MSEB/Mahagenco FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 MU (net generation) 44710 46464 47245 46459

T E R I Report No. 2006RP23

408 Analysis and compilation of tariff orders

SOURCE

Annual accounts for FY 2004-05 and tariff petition of MSEDCL for FY 2006-07

&

* *69 (@

CE

6J

4 = (. /N (

** , (@ CE ) D , &T H ) D 6 6T C + J & CE 6J

J

CE

47500 47000 46500 46000 46464

47245 46459

MUs

45500 45000 44500 44000 43500 43000 2002-03 2003-04 2004-05 2005-06 44710

Figure 8.2 Movement in net Generation

SOURCE

Annual accounts for FY 2004-05 and tariff petition of MSEDCL for FY 2006-07

J - +& = CE *J 6 CE 6J

Table 8.3 Peak Demand Vs Availability and load shedding

FY 2004-05 Particulars Peak Demand Availability (at the time of peak demand) (MW) Load shedding (at the time of Peak demand) (MW) Load shedding (at the time of peak demand) (MU)

SOURCE

FY 2005-06 (actuals) 14061 9856 4205 66.5

(actuals) 12749 9704 3045 38.85

Tariff petition of MSEDCL for FY 2005-06

) 4 4 ! = = ; =

T E R I Report No. 2006RP23

64 = 4 4 > > = *6 6 < = 4 /4 )

4

409 Analysis and compilation of tariff orders (A - +* =

Table 8.4 Stipulated hours of load shedding

Region Group A B C D

SOURCE

Urban & Industrial agglomerations Hours 2.5 3 3.5 4

Other regions Hours 4.5 5 5.5 6

Agriculture dominated region Hours 11 11.5 12 12

Tariff order for MSEDCL for FY 2006-07

3 4 6 * ( = 3 = % % 6 = (A J, ( &**6 (A 3 9J, < $ , -

! 4

4

= 4 3 3

, J,, 7, ;

- +6

Table 8.5 Capacity addition plan "firmed projects"- phase -1

Expected date of commercial Existing Capacity MSEB/ Mahagenco Utilisation of existing capacity of GTPS 2007-08 Parli TPS Ext Stage-I Paras TPS Exp Stage ­1 New Parli TPS Exp-II Paras TPS Exp-11 Kharperkheda Project Bhusawal TPS Exp Unit 1 Bhusawal TPS Exp Unit 2 Total MSEB/Mahagenco IPP Projects RGPPL (DPC) 2006-07 2004-05 2,210 392 250 2006-07 2006-07 2008-09 2008-09 2008-09 2009-10 2009-10 2500 792 250 250 250 250 500 500 500 July-06 November-06 October-08 October-08 March-09 August-09 November-09 Year of Availability Capacity in MW operation

Inter-state Projects

Sardar Sarovar Project Irrigation Project Ghatghar PSS 2006-07 S O U R C E Information provided by MahaGenco

T E R I Report No. 2006RP23

410 Analysis and compilation of tariff orders 7 4 ,, 2 ' = :

1 3

% = % CE +J 9 CE , J

2

A . 0* /<

(

- +

=

%

J

Table 8.6 Proposed projects under Phase-II

Proposed projects of Mahagenco Uran GTPS Exp Talegoan Gas project Chandrapur TPS Koardi TPS Exp Dhopawe Coastal Project Total MahaGenco IPPS Ultra Mega Projects (4800 MW) Total planned capacity S O U R C E Information provided by MahaGenco Year of Availability Capacity (MW) 2008-09 2008-09 2009-10 2009-10 2010-2011 1,040 1,400 500 1,000 1,600 5,540 3,973 4,800 14,313

J

; (

3 = -

< -

FY 2002-03 in retrospect

CE = 0 J &4 3 % = ,&** ,, *6 & ) = 6* 9 ) 9)

2

Consumption and access Sales/demand estimation

CE ) ; (. / ( &J *4 (. / % &9 (@ - I *&6 6 (@ ) * 6,6 (@ <

CE J CE *J 6

1

H 4 CE

) 6J -

=

While the phase-I projects are firmed up, the second phase projects are ,subject to availability of fuel (as per the Mahagenco Website). 2 As per information available in the MSEB annual accounts for FY 2004-05

T E R I Report No. 2006RP23

411 Analysis and compilation of tariff orders

- + CE

C +& = &J *4 CE *J 6

= CE 6J

Table 8.7 Sales for FY 2003-04, FY 2004-05 and FY 2005-06

MU Proposed Approved Actual

SOURCE

FY2003-04 40515 39709 43575

FY2004-05 42948 46101 46101

FY2005-06 45956 48904 48904

Tariff order for MSEB FY 2003-04, tariff order for MSEDCL for FY 2006-07

60000 50000 40000 30000 20000 10000 0 2003-04 Proposed 2004-05 Approved 2005-06

Sales (MU)

Figure 8.3 Proposed and approved sales for FY 2003-04 to FY 2005-06

SOURCE

Tariff order for MSEB FY 2003-04, tariff order for MSEDCL for FY 2006-07.

#

; ? ? $? & ) CE &J *4 % = = ) (. / 4 % (. / % % &J * ( ( % 4 (

, CE

) D = J &4 3 % %

-

) J CE

2 ;$? & ? ? )3 J ,& J = (. / 0 CE ) N N 2$

(. / J &J *4 3 %

%

T E R I Report No. 2006RP23

412 Analysis and compilation of tariff orders H 5 % 4 6 99 N$ 2 N 6 N N 2$ ) N N 2$ % 4 ) = - (. / (. /

%

= -J " , -J = . ,& - ++ = N N 2$ -J = N N 2$ ( CE ) &J * 5 ,& J

Table 8.8 LT Agriculture Category: sub-category-wise consumption

MERC Estimate Sub-Category Flat Rate Tariff Circles with consumption norm < 1300 hours/HP/year Circles with consumption norm > 1300 hours/HP/year Metered Tariff Total

SOURCE

FY 2003-04 MU 6893 4480 2413 865 7757

Tariff order of MSEB for FY 2003-04.

) -

P

CE

*J 6

CE

6J

Category wise sales

CE % 2 5 ) ! J 5 $ " ; <5 JD ;-< $- A A 0 ;$ AA<" ; < @ $ AA .

T E R I Report No. 2006RP23

&J *J ;2 <

4 (. /" 5 ;5 <

$ AA

;-<

413 Analysis and compilation of tariff orders

2 ) 2 $ ; JF

" 2 $ 4 2 $ 4 2 $ ;$ J J J AA<4 2 $ F;$ J AA<4 <4 2 $ 4 2 $ JF JF ; <4 ( $ = J. J CE 2 4 ! 3CE ! J % -J J & = -

*

= 4 = LCE ,999J

& - +9 * = = CE &J

Table 8.9 Category wise movement in sales from FY 2000-01 to FY 2003-04

Diff b/w proposed and approved sales 11.67% 10.83% 10.50% 0.00% -23.24% 11.99% -3.46% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.55% 0.18% -1.99%

Category

Proposed 7863 1763 3294 481 10145 567 24113 6644 6217 637 394 980 310 582 638 16402 40515

Approved 8781 1954 3640 481 7787 635 23278 6644 6217 637 394 980 310 582 667 16431 39709

LT Category

Domestic (LT1) Non-domestic (LT2) LTP-G (including power loom) Public Water Works Agriculture Street Lighting Sub Total LT HTP-I HTP-II HTP-III HTP-IV HTP-V (Railway Traction)

HT Category HTP-VI

HTP-VII (Agriculture) Mula Pravara Sub Total HT

Grand total (LT + HT)

SOURCE

Tariff order for MSEB for FY 2003-04

(

= ) 2

(. / = 4 (. / )

TCE

&J *

5

4

(

$ =

T E R I Report No. 2006RP23

414 Analysis and compilation of tariff orders ) = C 4 ) - (. / * ) = % CE ; ;$? ) ? ? , ;$? , ? ? 4 CE 6J = CE J <4 = = - +, = CE *J 6 CE 6J * 6T

*J 6

J

Table 8.10 Category wise sales in FY 2004-05 and FY 2005-06 (proposed and approved/actual1)

FY 2004-05 % difference b/w proposed and approved sales 3.96% 2% 0% 4% 0% 0% 4% 1% 132% FY 2005-06 % difference b/w Approved proposed and (MU) approved sales 8,029 2,046 3,900 18,171 538 1,096 10,785 1,486 2,853 0 48,904 6.41% 2.57% -0.34% -3.06% 13.63% -3.58% -4.36% -5.00% -5.17% 102.05%

Consumer Category Domestic Commercial Industrial (Low & medium voltage) Industrial high voltage Public lighting Railway traction Irrigation & agriculture Public water works Bulk supply to others* Interstate Temporary connections Total

SOURCE

Proposed (MU) 7,356 1,922 3,792 15,453 539 1,068 9,955 1,477 1,361 0 25 42,948

Approved (MU) 7,647 1,966 3,792 16,042 540 1,068 10,364 1,498 3,157 0 0 46,101

Proposed (MU) 7,828 2,053 4,023 15,991 558 1,146 11,353 1,567 1,412 25

7%

45,956

*Considering net power purchase from TPC Tariff order for MSEDCL for FY 2006-07

- + ,,

=

%

Table 8.11 Share of the major categories in total sales

FY 2003-04 (Actuals) 17.52% 4.12% 39.62% 23.30% 100.00% FY 2004-05 (actuals) 16.65% 4.26% 43.02% 22.48% 100.00% FY 2005-06 (actuals) 16.42% 4.18% 45.13% 22.05% 100.00%

Domestic Commercial Industrial Irrigation and agriculture Total

SOURCE

TERI estimates based on actual sales category wise taken from Annual accounts

of MSEB in FY 2004-05 and Tariff order for MSEDCL for FY 2006-07

CE

&J *

CE

6J

3

1 The

Commission approved the sales for FY 2004-05 based on actuals (information given in FY 2006-07 tariff order for MSEDCL)

T E R I Report No. 2006RP23

415 Analysis and compilation of tariff orders G < ) *T 6 6T / ; -

,T =

Number of consumers and connected load

- +, (. / 6J 0 (. !)5 CE = - 3 6J 4 S = = (. !)5 - (. !)5 (. / S P CE CE 6J J CE &J * CE *J 6 CE CE &J * CE *J 6 (. / CE *J 6 0 $

- 4 &J * CE

6J (. / -

P =

CE

Table 8.12 Category wise number of consumers

Category Domestic Commercial Public lighting Irrigation and watering Public water works Industrial (LT/HT) Railway Traction Bulk Supply Outside Supplies Misc (military) Total

SOURCE

FY 2003-04 (Actuals) 9732362 1116375 64683 2274146 44098 299738 476 2 4 514 13532398

FY 2004-05 (Actuals) 9854816 1102485 66668 2297303 44171 290262 472 2 4 13656183

FY 2005-06 (Petition) 9955348 1033878 67179 695639 41208 295078

9666 12097996

Figures for FY 2003-04 and FY 2004-05 are taken from Annual accounts of

MSEB for FY 2004-05. Figures for FY 2005-06 are taken from the MSEDCL petition for FY 2006-07.

&T &J * CE CE 6J *T &J * CE

CE , 6T

6J

T E R I Report No. 2006RP23

416 Analysis and compilation of tariff orders - + ,& = (A CE &J * (. / CE *J 6

Table 8.13 Category wise connected load (MW)

Category Domestic Commercial Public lighting Irrigation and watering Public water works Industrial (LT/HT) Railway Traction Bulk Supply Misc (military) Total

SOURCE

FY 2003-04 (Actuals) 7970 1540 333 6999 420 8561 380 34 203 26440 Annual accounts of MSEB for FY 2004-05

FY 2004-05 (Actuals) 8402 1658 333 7224 523 11283 518 34 29974

*

99 * (A

CE

- ,&T *J 6 3 (. /

** (A

CE

&J

- + ,* = % CE *J 6

CE

&J *

Table 8.14 Consumer and connected load mix

FY 2003-04 Domestic Commercial Industrial Irrigation and watering

SOURCE

FY 2004-05 Consumer mix 72.16% 8.07% 2.13% 16.82% Connected load 28.03% 5.53% 37.64% 24.1%

Consumer mix 71.9% 8.25% 2.21% 16.81%

Connected load 30.14% 5.82% 32.38% 26.47%

Annual accounts of MSEB for FY 2004-05

T T &+T CE *J 64 CE +T *J 6 2 =

- + ,6 %

= CE &J * CE *J 6

T E R I Report No. 2006RP23

417 Analysis and compilation of tariff orders

Table 8.15 Connected load per consumer (kW)

Domestic Commercial Industrial Irrigation and watering Total

SOURCE

FY 2003-04 (Actuals) 0.82 1.38 28.56 3.08 1.95

FY 2004-05 (Actuals) 0.85 1.50 38.87 3.14 2.19

TERI estimates based on information from annual accounts of MSEB for FY

2003-04

+ 0A = , &+ 0A *J 6 + 6 0A &+ + 0A 0A 0 C CE CE *J 6 J CE CE *J 6 , 96 0A +, %

Table 8.16 Category-wise average consumption per consumer in kWh (FY 2003-04, FY 2004-05 & FY 2005-06)

FY 2003-04 FY 2004-05 Domestic Commercial Industrial Irrigation and watering Total

SOURCE

CE

&J *

+6 0A J

CE

*J 6 &J *

=

CE

, 6 0A CE &J *

CE

&J * ,, +& = -

*J 6 +6 , 0A CE ) *J 64 CE ,9 0A &J *

=

J

FY 2005-06 806.5 1979 74797.17 4042.32

784.29 1607.88 57593.63 4465.41 3320

778.71 1783.24 68331.37 4511.38 3376

annual accounts for MSEB for FY 2004-05 (based on actuals), MSEDCL tariff order

and tariff petition for FY 2006-07

-

+T

CE -

&J * &T

CE & T

6J = (. /

C CE

+&; < *J 6

=

= = *+ *T L =

-

T E R I Report No. 2006RP23

418 Analysis and compilation of tariff orders , ,T $ S 6T P = / 0

Others 15.9%

Domestic 16.1%

Irrigation and agriculture (LT & HT) 12.9%

Commercial 6.7%

Industrial 48.4%

> 2 3) -& 61

SOURCE

J

=

CE

*J

Annual accounts for MSEB for FY 2004-05

%

+,

= CE

= &J * CE *J 62

Table 8.17 Revenue Realization (Rs/kWh)

Category Domestic Commercial Industrial low & medium voltage Industrial high voltage Irrigation and agriculture (HT and LT) Public lighting Total

SOURCE

FY 2003-04 (Actual) 2.78 4.92 3.49 3.9 1.41 2.65 3.07

FY 2004-05 (Actual) 2.96 4.26 3.43 3.56 1.75 3.08 3.09

Annual accounts of MSEB for FY 2004-05

* L , 6 CE *J 6

CE

*J 6

Status of Rural electrification

@ ; D F D E< %=D +* = D - ( ) & F $ - + ,+ 0 ( E % 64

1 2

Actual revenue realization category wise is not available for FY 2005-06. The total revenue for each category for FY 2005-06 is not available and hence the comparison is limited to two years.

T E R I Report No. 2006RP23

419 Analysis and compilation of tariff orders ( = Table 8.18 Rural household electrification

Total number of rural Households 10993623

SOURCE

6T

Households having Electricity 7164057

% Electrified Households 65.17

Unelectrified Households 3829566

% Unelectrified Households 34.83

Website of Ministry of Power, www.powermin.nic.in

&, ( 4 6

= &69,+ 1

Efficiency improvement Transmission and distribution loss estimation

- + ,9 = (. / . CE *J 6 4 ) CE 6J 4 = G ! =

Table 8.19 T&D losses (Proposed, approved & actual)

CE $ =

SOURCE

&J * T T

CE

*J 6 &6 ,T J

CE &&

6J T J

CE

J

& &

&, & T &+ , T

& &T &*T && T Tariff order for MSEB for FY 2003-04, ARR and Tariff petition for MSEDCL for FY 2006-07 and Annual Accounts for MSEB for FY 2004-05. Figures for FY 2005-06 and FY 200607 are taken from the MSEDCL petition FY 2006-07 but are the aggregate losses for transmission and distribution.

CE ) (. !)5 = CE 4 % CE &J * ; ( ( 0 = 6J 4 ) &J * && = G !

T CE G ! &, & T -

& 6J CE &+ , T4 ) CE = = J 4

&T

*J 6

-

H

!

J <

)

H ! 1

!=

Information given in the petition of MSEDCL for FY 2006-07

T E R I Report No. 2006RP23

420 Analysis and compilation of tariff orders

L

L

N N

L G ! -

N L N 4

L C N

4

L

J

N J G 5 ! =

G ! ; !5< H

4 "

D ") !5 H D ") &9 *9T D ") !5 H - + % = - (. /

G ! G ! !5 H G !

- =

+ T + T

- = &9 *9T

G ! -

CE )

&J *

Table 8.20 Energy Input Requirement in FY 2003- *

MSEB (Projection) MU Commission (Approved) MU 32818 6893 39710 22942 62652 36.62%

Sales

Metered Unmetered 32112 8403 40515 23407 63922 36.62%

Total Sales

T&D Losses Energy Input Requirement T&D loss as a % of energy requirement

SOURCE

Tariff order of MSEB for FY 2003-04.

- + , J

=

G !

=

CE

Table 8.21 :T&D losses for FY 2006-07 ( Proposed and approved)

Proposed (%) Transmission loss Distribution loss Total T&D losses

SOURCE

Approved (%) 4.85% 34.97% 38.12%

6% 27% 31.37

Tariff order for MSEDCL for FY 2006-07

(. !)5 ,* ( );

CE T (

J ) H < 4 64

T E R I Report No. 2006RP23

421 Analysis and compilation of tariff orders J I ) CE ) J J = = (. !)5 A 9 ( ) % T

1

4 = ) . J I @ J

- . 5!) - J

= * +6T (. !)5P J = 4 )

J = (. !)5 J

=

) -

CE J 4 (. !)5 CE J

T -

N N

- + CE = J

2 ,&,+ N N 9 (@ ( )P = = 0 &* 9 T G 5 !

- (. !)5 =

Table 8.22 Estimation of T&D losses for FY 2006-07

FY 2006-07 (Proposed) Power purchase Transmission losses % Transmission loss (MU) Energy input Sales Metered (excluding agriculture) Agriculture metered Agriculture unmetered Credit billing (on a/c of TPS) Total Sales Distribution loss Distribution loss %

1

FY 2006-07 (Approved) 77551 4.85% 3761 73790 38285 2516 7186

78453 6% 4707 73746 38285 2619 12349 581 53835 19911 27%

47987 25802 34.97%

MSEB/MSEDCL conducted an analysis of the sample energy audit data for FY 2003-04 and FY 2004-05 and arrived at the agricultural consumption of 1559 and 1602 hrs/hp/annum for FY 2003-04 and FY 2004-05 respectively. MSEDCL assumed that the consumption norm would increase from 1602 hours/hp/annum in FY 2004-05 to 1762 hrs/HP/annum and around 2290 hours/hp/annum in FY 2005-06 and FY 2006-07 respectively, using the `best judgement' approach. The details on the assumptions for arriving at the norms for FY 2005-06 and FY 2006-07 are not given either in the petition or the tariff order. 2 The Commission made its own assessment of the consumption norm for agriculture consumers. It based its sample on the recorded consumption of metered consumers for estimating agriculture consumption

T E R I Report No. 2006RP23

422 Analysis and compilation of tariff orders

SOURCE

MSEDCL Tariff order for FY 2006-07

G ! &+ , T

= *J 6

-

) CE = 6J < = -

&J*T ;CE = (. /N (. !)5 = = JOJ= ) ) = ) =

=

) (. /N (. !)5 = 4 = = & 9 T = 0

CE J - (. !)5 ) J % -

J

CE 4 (. !)5 = R

J

4 = - (. !)5 0 Q = D

-

-

Collection efficiency

- + & = ,J CE (. / *J 6 CE

Table 8.23 Collection efficiency

Year FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05

SOURCE

Collection efficiency 89.27% 89.13% 90.03% 88.33%

Information provided by Mahadiscom office, Mumbai

) * CE

= ++ &&T *J 6 CE *J 6 C +* (. /

9

&T CE

CE ,J

&J

T E R I Report No. 2006RP23

423 Analysis and compilation of tariff orders

90.50% 90.00% 89.50% 89.00% 88.50% 88.00% 87.50% 87.00% 2001-02 2002-03 2003-04 2004-05

Figure 8.4 Collection efficiency

SOURCE

Information provided by Mahadiscom office, Mumbai

AT&C losses

G ) = (. / - + * CE C +6 ,J CE *J 6

Table 8.24 AT&C losses from FY 2001-02 to FY 2004-05

FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05

SOURCE

AT&C loss 46.34 44.3 44.18 26.62

PFC estimates available at: www.apdrp.com/apdrp/projects/pdf/AT&C_Loss_of_Power_Utilties.pdf

- + * G ) CE *J 6 (. /N (. !)5 0 = 2 = - 3 G ) CE *J 6 ( H CE J 4 ; CE &J * !

=

= ) = &<4

(. /N (. !)5 4( ) (. !)5 CE CE J J % CE *J 6 CE 6J (. /N (. !)5 CE *J 6 CE 6J &,T 9T =

T E R I Report No. 2006RP23

424 Analysis and compilation of tariff orders C +6 CE = ,J G ) CE *J 6

50 45 40 35 30 25 20 15 10 5 0 2001-02 2002-03 2003-04 2004-05 %

Figure 8.5 AT&C loss

PFC estimates available at: www.apdrp.com/apdrp/projects/pdf/AT&C_Loss_of_Power_Utilties.pdf

SOURCE

Metering

- + 6 = CE 6J

Table 8.25 Metering status

FY 2001-02 Particulars 11 kV Feeders Distribution transformer Consumer metering (in lakhs)

SOURCE

CE

,J

4 CE

*J 6

FY 2004-05 %age 100 N.A 84 Numbers N.A 186000 N.A Metered N.A 50000 N.A %age N.A 27 N.A Numbers 6148 215241 135.32

FY 2005-06 Metered 6148 52923 118.12 %age 100 25 87

Numbers 7558 N.A 129

Metered 7558 N.A 109

A -

(

$

4

6J ( 6T 9 9 , 6 0 (. !)5

= 4+ T ,, 0F 4 5 0

, = = -

CE T = = 64

Power purchase and own generation cost

(. / ) $ J = =

T E R I Report No. 2006RP23

" (. /P D . $ ) J - + 4

(. / ; $ )<4

)

;$ )< C

425 Analysis and compilation of tariff orders + = I (

Table 8.26 Total generation and power purchase (MU)

FY2003-04 (MU) Mahagenco CGS & others Total

SOURCE

FY2004-05 (Approved) 51334 22595 73929

FY 2005-06 (Approved) 46532 25924 72456

FY2006-07 (Approved) 49575 20214 697891

(Approved) 46470 16183 62653

Annual accounts for MSEB for FY 2004-05, Tariff order for MSEDCL for FY 2006-07, Tariff order for MSPGCL for FY 2006-07

80000 60000 MU 40000 20000 0 FY2003-04 FY2004-05 FY2005-06 FY2006-07 Total

Mahagenco

CGS & others

Figure 8.6 Total generation and power purchase (MU)

SOURCE

Annual accounts for MSEB for FY 2004-05, tariff order for MSEDCL for FY 2006-07, tariff order for MSPGCL for FY 2006-07

.

P H *T

CE * ? 4 I *4 CE , 6

&J * # /

;(. /N ( < = (. / CE , T CE J $ 3 + 9T CE J # ;$? & ? ? )

&J * )D . 6 +T

;$? , ? CE &J &J *

*J 6

CE CE

6J 6J

=

- + ++ CE

1 The total for 2006-07 does not include the 5418 MU which is purchased at a high cost (of above Rs 4 per unit)

T E R I Report No. 2006RP23

426 Analysis and compilation of tariff orders

Table 8.27 Cost & quantum of own generation in FY 2003-04, FY 2004-05 & FY 2005-06

FY 2003-04 Total own Generation (MU) Proposed Approved Actual

SOURCE

FY 2004-05 Total own Generation (MU) 46459 46532 46459

FY 2005-06 Total cost of Per unit cost of generation 1 own generation (Rs. Crore) (Rs/unit) 4989 4880 4997 1.07 1.05 1.08

Generation Per unit cost of Total own Total cost of Per unit cost of cost (Rs. own Generation Generation generation own generation Crore) (Rs/unit) (MU) (Rs. Crore) (Rs/unit) 4243 4111 4247 0.93 0.88 0.91 -NA 51334 47245 4889 4710 4948 NA 0.92 1.05

45983 46470 46463

Tariff order for MSEB for FY 2003-04, tariff order for MSEDCL for FY 2006-07 and tariff order for MSPGCL for FY

2006-07

- + + I

=

J CE &J *

=

Table 8.28 Cost & quantum of own generation in FY 2003-04

Quantum of net Quantum of net Variable cost of Variable cost of generation Proposed generation Power proposed power approved (MU) (Rs. Crore) Approved (MU) (Rs. Crore) Khaparkheda Paras Bhusawal Nasik Parli Koradi Chandrapur Total Thermal Gas Thermal Hydel stations 4948 316 2899 5303 3948 6020 14433 37868 4039 4077 5471 345 2802 4680 3538 3918 15693 38431 3961 4079 508 38 336 694 514 678 1193 3960 282 505 42 323 663 454 720 1136 3844 267 -

Total MSEB

SOURCE

45983

46470

4243

4111

Tariff order for MSEB for FY 2003-04

)

&

I > ( * = =

& I ) &

* *

(@

*+ (@ . 4

> 0 CE

&C % I CE

4

-% & ( - 0J * = )

6J

- (

*J 6

1 Proposed and approved fuel expense for FY 2005-06 (taken from the generation tariff order FY 2006-07).

T E R I Report No. 2006RP23

427 Analysis and compilation of tariff orders

Power purchase

Cost of power purchase in FY 2003-04, FY 2004-05 and FY 2004-05

CE $ , *6 - + 9 I = &J *4 (. / ) ) = = CE % &*9* ) = (. /P = , &6 &,& )

4 &J *

Table 8.29 Power purchase for FY 2003-04

Quantum Particulars (For FY 2003-04) NTPC Korba S.T.P.S Vindhyachal II S.T.P.S Vindhyachal I S.T.P.S Gandhar G.P.S Kawas G.P.S Income tax payable 4494 3046 2373 936 714 NA 4501 2727 2081 818 457 NA 351 390 332 316 313 140 370 333 301 315 229 95 (Proposed) MU Quantum (Approved) MU Cost (Proposed) Rs. Crore Cost (Approved) Rs. Crore

Sub-total (NTPC)

NPC Tarapur A.P.S Kakrapar A.P.S

11563

1231 1703

10515

1187 1772

1842

127 516

1643

118 541

Sub-total (NPC)

Eastern region Tata Power Company Power Trading Corporation Other sources (Non conventional etc) Power Grid Transmission charges UI charges

2935

658 2304 480 NA NA

2959

108 104 2127 300 NA NA

643

165 527 152 165 -

659

19 26 466 95 180 44

Total

SOURCE

17940

Tariff order of MSEB for FY 2003-04.

16183

3494

3132

. &J *

) *J 64 = ; 4 *J 6 CE 6J CE J = = < CE - +&

CE

&J *4

CE

T E R I Report No. 2006RP23

428 Analysis and compilation of tariff orders

Table 8.30 Cost of power purchase FY 2003-04, FY 2004-05 and FY 2005-06

FY 2003-04 Power Purchase expenses Units purchased (MU) Power purchase cost (Rs. Crore) Average cost per unit (Rs/kwh)

SOURCE

FY 2004-05

FY 2005-061 25924 5948 2.29

Petition Approved Actual Petition Approved Actual Petition Approved 17940 3494 1.45 16183 22296 20023 3132 4469 1.35 2.00 4203 2.1 22595 22595 23272 47774 4774.3 2.11 2.13 5324 2.28

Tariff order of MSEB for FY 2003-04 and tariff order for MSEDCL for FY 2006-07.

C

+ = CE

= < CE 9 &J * CE CE J 6J , &6 ; &J *

; = <

2.5 2 Rs/unit 1.5 1 0.5 0 FY 2003-04 FY 2004-05 Proposed

Figure 8.7 Average per unit cost of power purchase

SOURCE

FY 2005-06 Approved

Tariff order of MSEB for FY 2003-04 tariff order for MSEDCL for FY 2006-07

Trading and UI

- + &, = = CE I &J *

Table 8.31 Energy trading for FY 2003-04

Particulars Mula Pravara Inter state Proposed (MU) 638 0 Approved (MU) 667 0

Total energy trading

SOURCE

638

667

Tariff order of MSEB for FY 2003-04.

- +& = 6 CE 6J ) CE J

I = 0

CE L (. !)5

*J

The power purchase cost and quantum for FY 2005-06 is derived from the total power purchase cost of discom (given in the discom tariff order for FY 2006-07) minus the own generation cost and quantum given in the MSPGCL Tariff order for FY 2006-07

1

T E R I Report No. 2006RP23

429 Analysis and compilation of tariff orders

Table 8.32 Trading quantum and cost

Quantum (MU) FY 2004-05 FY 2005-06

SOURCE

Total Cost (Rs. Crore) 718 1435

Average cost (Rs/unit) 2.68 3.68

2677 3904

MSEDCL ARR petition for FY 2006-07.

7

' ( CE *J 6 9 (@ ; < *)

' 0 @ =

27 3 4 , ,+T = 0 4 CE *J 6 +

CE = ! 4 -

6J -

4 6 ;,,+ (@< (@

I > = @ 64 0 CE & *J 6 CE (

@ ! - + && = 6J

Table 8.33 UI charges

Quantum (MU) FY2004-05 (actual) FY2005-06 (estimated in petition)

SOURCE

Total Cost (Rs Crore) 224 419

Average cost (Rs/unit) 2.82 3.02

792 1387

MSEDCL tariff petition for FY 2006-07.

Employee cost

- + &* = CE 4 &J *4 CE = *J 6 CE 6J

Table 8.34 Employee cost (Rs. Crore<

FY 2003-04 Proposed Approved 1695 1653

FY 2004-05 1952 1963

FY 2005-06 2094.28 2072.66

Actual1 1811 2133 NA S O U R C E tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

CE )

&J *4 (. / CE &J *4

% L 4

3 6 T

, 96

1 The actuals for FY 2003-04 is not net of capitalisation as are the proposed and approved figures. This may explain the major difference between the proposed and actual employee cost (the annual accounts have clubbed the capitalization for employee cost and A&G expenses ­ Rs 186.92 Crore.

T E R I Report No. 2006RP23

430 Analysis and compilation of tariff orders 3 3 , 6& % CE *J 64 ) ; 9* + ) ) = CE 4 ) < 6J 4 ) L 4 = = ) 9 *T (. /

Employee productivity

- + &6 ; < C ++ = =

Table 8.35 (A) Employee productivity (employee cost as % of ARR and employee cost per unit of sales)

FY 2003-04 Particulars Employee cost per unit of sales (Rs./ kWh) Employee cost as a % of ARR (%)

SOURCE

FY 2004-05 MSEB projection Commission's approval

FY 2005-06 MSEB projection Commission's approval

MSEB Commission's projection approval 0.43 12.67 0.42 12.37

0.45 13.49

0.43 13.93

0.46 12.39

0.42 12.72

* 6 , & T CE ,

CE

&J * *

*& CE *J 6 ++ CE 6J

CE 6J

*J

&J * ,& 9&T CE T CE 6J C CE &J *4 CE *J 6

T

T E R I Report No. 2006RP23

431 Analysis and compilation of tariff orders

15 10 5 0

12.37

13.93

12.72

0.42 2003-04

0.43 2004-05

0.42 2005-06

Employee cost per unit of sales (Rs./ kWh) Employee cost as a % of ARR (%)

Figure 8.8 Employee productivity

SOURCE

- + &6 ;/< = + 6, T

0 CE *J 6 CE

= ,

+ CE &J * = &J * CE *J 6

Table 8.35 (B) Employee productivity

FY 2003-04 FY 2004-05 No of employees per `000 consumers Revenue per employee (Rs)

SOURCE

8.62 1,142,156

8.51 1,218,916

;*J 6

(. / CE

Repair and maintenance expenses (R&M expenses)

CE &J *4 (. / & +) ; D C3 D C G( 3 L < ;D < C G 3 ( &T G 3 ( = L L - = = L &T = D C G 3 ( & ,, ) % 3 &T

) = = )

4

(. / &J *

CE

) - (. / A T D 4 C ) &T CE 6J 4 (. !)5 & ,6T D C CE

CE

*J 64

(. / ; 6J 4

G ( 0 = G 3 ( + <

T E R I Report No. 2006RP23

432 Analysis and compilation of tariff orders ) 3 3 CE = 6J ) = = = D C &* T &* T D 4 C 0 6J 4 G 3 ( + ,+ ) 3 , +, ) G 3 ( CE &J *4 CE ; 4 <

1

G ( G ( & 6) -

) - +& *J 6 CE

Table 8.36 R&M expenses in FY 2003-04, FY2004-05 and FY 2005-06

Particulars Proposed FY 2003-04 Tariff Order Actual MSEB FY 2004-05 Tariff Actual Order 26843 MSEB 26724 FY 2005-06 Tariff Order Actual 26653 NA 697 871.86 721.81 NA NA

Opening Balance of Gross Fixed Assets 24827 24827 25918 25918 25918 (Rs. Crore) R&M Expenses (Rs. Crore) 737.8 737.11 663 697 770 R&M expenses as % of GFA 2.97% 3.00% 2.56% 2.70% 3.00% S O U R C E tariff order and annual accounts for MSEB for FY 2003-04, tariff order MSETCL for FY 2006-07

2.60% for MSEDCL, MSPGCL and

Administration and General (A&G) expenses

- +& CE = 6J G 3 D CE &J *4 CE *J 6

Table 8.37 A&G expenses* in FY 2003-04, FY 2004-05 and FY 2005-06 (proposed, approved and actual) (Rs Crore)

FY2003-04 Proposed Approved Actual2

SOURCE

FY2004-05 185 148 202

FY2005-06 193 152 NA

145 139 187.6

ZNet after capitalization

tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

(. / % GD 3 *4 ) ;96 6 T< (. / ** T J & G 3 D

= % = -

,*6 ) CE ,&+ 6+ ) G 3 D CE 3 4) =

&J &J CE

The information is from the tariff order 2006-07, and the information pertain only to the discom. Further the actuals refer to the actuals claimed by MSEDCL in the petition. However the annul accounts of MSEDCL are not available for 2005-06. 2 The difference between approved and actual can also be because while the proposed and approved A&G expenses are net of capitalization, the actuals do not take into account the capitalization. (In the annual accounts of MSEB, the capitalization for employee cost and A&G is clubbed together. (Aggregate capitalisation in 2003-04 of A%G and employee cost is Rs 161.9 Crore and in 2004-05 is Rs 186.9 Crore)

1

T E R I Report No. 2006RP23

433 Analysis and compilation of tariff orders = G D C CE = ) = *J 64 ) * T ; = CE &J * L G D 4 ) / 6J ) = C = +9 = ;CE &J * CE < 3 ,6, 6 ) G D = 0 G 3 D 6J < - + &+ G 3 D T G ; D ,9 G 3 D < ,*+ ) CE *J 64 = 3 4 ) * T = =

= =

-

C

CE

Table 8.38 Efficiency improvement in A&G expenses

Particulars A&G per unit of sales(Rs./ kWh) A&G as a % of ARR (%)

SOURCE

FY 2003-04 0.041 1.21 0.039 1.16

FY 2004-05 0.047 1.28 0.032 1.05

FY 2005-06 0.04 1.14 0.030 0.93

Proposed Approved Proposed Approved Proposed Approved

TERI estimates based on figures of A&G expenses from tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

1.4 1.2 1 0.8 0.6 0.4 0.2 0

1.16

1.05

0.93

0.039 FY 2003-04

0.032 FY 2004-05

0.030 FY 2005-06

A&G per unit of sales (Rs./ kWh) A&G as a % of ARR (%)

Figure 8.9 Efficiency improvement in A&G expenses

SOURCE

TERI estimates based on figures of A&G expenses from tariff order and annual accounts for MSEB for FY 2003-04, Tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

CE

G 3 D &J *

&9 & CE 6J G 3 D

T E R I Report No. 2006RP23

434 Analysis and compilation of tariff orders ,, T 9&,T CE 6J CE &J *

Depreciation

- + &9 = CE 4 &J *4 CE = *J 6 CE 6J

Table 8.39 Depreciation (Proposed, Approved and actual)

Depreciation (Rs. Crore) Opening GFA Depreciation expenses 1585 1578 FY 2003-04 25918 25918 1451.9 1434 FY 2004-05 25918 1431 FY 2005-06 26843 26724.37 26653.37 1431 1480.78 1572.09 Petition Approved Actual Petition Approved Actual Petition Approved

Average depreciation rate (%) NA 6.36% 5.53 5.52 S O U R C E tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

CE &J *4 ,6+6 ) = 0 )

(. /

% =

3 0

& T 3

=

4 = -

-

) ) *J 6 ) ,*&, ) CE 3 P 0

,6 + = CE

= 66 T

D C =

69,+

6J

CE ) =

&T &J *4 Q

( (. !)5 )

4 (. !)5 6*, ) ( 94 ,99*

$ =

;( $ = <

3 = = 0 R D C ++9* ) ;D C +&+* ( &,4 * CE *J 6 69T= - 0 3 6+ ) = (. /

= < 0 ) CE 0

T E R I Report No. 2006RP23

6, ) =

= 6J 4 - + &94

435 Analysis and compilation of tariff orders ,*+ 9) +)

)

=

,6

Capital expenditure

- +* J = = +J 9 (

Table 8.40 Investment planned by Mahadiscom (MSEDCL) Rs Crore

Year FY 2006-07 FY 2007-08 FY 2008-09 Total

SOURCE

Capital works 774 4343 4343 9460

R&M works 1027 2000 2037 5064

Total 1801 6343 6380 14524

information provided by Mahadiscom

(. !)5 +J 9 0

6

3 3 *)

9* G (

CE )

J

CE

Sources of funds

- + *,

Table8.41 APDRP status

Particulars Project cost Rs. Crore Maharashtra MSEB

SOURCE

= (. /

$ $ ! "

(

&,4

4

Fund release Rs. Crore 349.01

% of work completion % 40 38

Utilisation upto 03/2005 Rs. Crore 325.52 168.35

Utilisation during 2005-06 Rs. Crore 565.80 347.83

Total utilisation upto March, 2006 Rs. Crore 891.32 516.18

2231.58

1376.21 Website of Ministry of Power, www.powermin.nic.in

(. / (

-

6, )

$ $ !

Interest and finance charges

- +* = *4 CE *J 6 CE CE 6J &J

T E R I Report No. 2006RP23

436 Analysis and compilation of tariff orders

Table 8.42 Interest and finance charges (proposed, approved and actual)

FY 2003-04 FY 2004-05

(Rs Crore)

FY 2005-061

Interest on long term loans

Proposed Approved Actual Proposed Approved Actual Proposed Approved Actual NA NA 1071 1293.35 878 529 1160.43 726 452.14 NA NA NA

Interest on working capital NA 55 NA NA 60 NA 310.08 121 Other interest and finance charges -* NA 119 113 NA 213.42 145.42 Total 1308 1126 1432.57 1305 702 1292.76 1249.5 718.56 *interest on consumer's security deposit was considered in "other expenses" category in FY 2003-04 S O U R C E tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

&J *4 (. / % ,& + 0 3 ) = ,, CE &J * ;< 3 3 ) H 0 = ! $ ) ;!$ )<4 = (. / H 0 (. /P = % 3 4 = ) 66 ) 6* ) *J 64 (. / L + +) 3 = = - = = 4 ) - (. / J 6 9) ) ) ;, ) ) 6T< $ 5 . 3 / 0 66 6+ ) ,,& ) CE 0 , T 0

CE

"

J ) . = = 0 )

0 CE

&J *

1

CE 4 -

6J

T E R I Report No. 2006RP23

437 Analysis and compilation of tariff orders CE ; ) ) 3 = = = 4 4 ) - (. !)5 = = 0 = CE 6J . = = CE *J 6 6J 4 (. !)5 L ,+, ) < 99 ) -

) 6& )

0 &J * ) 0 (. !)5 0 ;$ 5 (. /

CE , 6T . < / = CE 6J

4

4 9& )

) ) ) - +* 4 ) 3 CE 0 )

6) CE &J * &* - (. !)5 6J 4 4 , *9 6 ,+ 6 ) -

Provision for bad and doubtful debt

- + *& = &J *4 CE = *J 6 CE 6J CE

Table 8.43 Bad and doubtful debts (Proposed and Approved) (Rs Crore)

FY 2003-04 FY 2004-05 FY 2005-06 Proposed Approved Proposed Approved Proposed Approved 250 181 210 213 219 248

SOURCE

Tariff order for FY 2003-04 and tariff order for MSEDCL for FY 2006-07

CE )

&J *4 ;&, ( = (. /

= &<4 CE I = J & = (. /

(. / 9 ) = CE

+

6

I = )

6

,J

T E R I Report No. 2006RP23

438 Analysis and compilation of tariff orders = = = (. / % ) ) % = CE &J *4 3 C CE = *J 6 = = = 3 = CE * 6J 4 ) + CE = &J * , 6T I = ,+, 6 , 6T = = (. / 4 H 9 4

Rate of return

- + ** *J 6 = CE 6J CE &J *4 CE

Table 8.44 Return on capital base- proposed, approved and actual (Rs. Crore)

Proposed FY 2003-04 FY 2004-05 433 461 Approved 433 390 Actual 658.3 300.4

FY 2005-06 667.28 523.24 S O U R C E Tariff order and Annual Accounts for MSEB for FY 2003-04, Tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

CE = * CE

&J *4 ( ) - (. /

*&& ) * 6T C CE *J 64 CE &J

6+ & ) *J 64 )

-

&, ( * C (. / , *) P & , ) = + 6 ) * 6T4 ) &9 ) CE *J 6 6J 4 ) (. !)5 &6,& ) 4 ) CE 6J +) )

CE C3 * 6T / ,6+ ) CE

-

= = CE

- + **4 4

6J

4

6J 6 & *)

T E R I Report No. 2006RP23

439 Analysis and compilation of tariff orders

Annual Revenue Requirement

- + *6 C +, &J * CE *J 6 CE < (. / 6J ; 4 CE =

Table 8. 45 Net ARR for FY 2003-04, FY 2004-05 & FY 2005-06

FY2003-04 Proposed Approved Actual

SOURCE

FY 2004-05 14474 14087 14992

FY 2005-06 16910 16297 NA

13201 12309 14039

Tariff order and annual accounts for MSEB for FY 2003-04, Tariff order for

MSEDCL for FY 2006-07

C

CE

= ,** * ) ; )

&J *4 (. / ) = ,* &9 ) CE *J 64 (. / ) = CE *J 6 ,*99 ) 4 CE 6J , 9, ) , 9 )

,& , & 9)

,)

,* + ) <

16500 16000 15500 15000 14500 14000 13500 13000 12500

16297 14992 14039

Rs Crore

2003-04 (actual)

2004-05 (actual)

200506(approved)

Figure 8.10 Net ARR of MSEB

S O U R C E Tariff order for MSEB for FY 2003-04, Tariff order for MSEDCL for FY 2006-07 and Annual accounts of MSEB for FY 2004-05.

- +*

= CE 6J (. /

-

0 4

=

T E R I Report No. 2006RP23

440 Analysis and compilation of tariff orders

Table 8.46 Component wise break of ARR for FY 2003-04, FY 2004-05 and FY 2005-06 Rs Crore

FY 2003-04 FY 2004-05 FY 2005-06 Proposed Approved Actual Proposed Approved Actual Proposed Approved Actual Generation Expenses 4243 4104 4247 4889 4710 4949 4989 4880 Power Purchase expense 3493 3132 4469 4203 4774 4774 5324 5948 Employee expenses 1695 1655 1812 1952 1963 2133 2094 2073 A&G expenses 145 139 188 185 148 202 193 152 R&M 738 737 663 697 770 697 872 721 Depreciation 1585 1578 1452 1429 1431 1431 1481 1572 Interest & other finance charges 1308 1126 1432.57 1305 703 1293 1250 718 Provision for bad debt 250 181 205.48 210 213 220 248 Other expenses 333* 291* 398.7* 130 24 347 850** 177** Total expenditure 13790 12943 14500 14999 14737 15640 17273 16489 Reasonable return 433 433 658 461 390 300 667.24 523.24 Gross ARR 14223 13376 15158 15460 15127 15940 17932*** 17005*** Less: non tariff income 1022 1067 1119 986 1039 949 1022 708 Net ARR 13201 123091 14039 14474 14087 14992 16910 16297 * Other expenses in FY 2003-04 include lease rental ** other expenses in FY 2005-06 is aggregate of contribution to contingency reserve, other expense, income tax and lease rental *** The non-tariff income from the transmission business (Rs 7.6 Crore) has been subtracted from the Gross ARR S O U R C E tariff order and annual accounts for MSEB for FY 2003-04, tariff order for MSEDCL, MSPGCL and MSETCL for FY 2006-07

Tariff/rate balancing

4 - I CE = 6J H 4 ! ; CE J = & CE J < 3 CE &J * CE *J 6

Approach to tariff determination

CE &J *4 4 ) ) = = = 4 ,99+4 = J J = J

D ,&6 )

4 & 4

1

2

= D

CH) , , *

CH)

T E R I Report No. 2006RP23

441 Analysis and compilation of tariff orders J CE - 0 CE &J * = = = +6T ) 2 $ J = = ) ,& N N 2$ CE = 5 &J * 2 $ J CE = J = ,T -% = 3 CE =L = J (. / 4 CE &J * @ = 6T +6T 6T = +6T = +6T ,6T N J = = . = CE &J * " = 4

4

6T

= = . = = ; &6T * T<4 = = 0 G ! " ) SG ! ) = L 4 3 ( = 4 3G! ) = 4N L N L G! I = 4 3 % = $ = $ ) ) J 3

( ;($ ). <

> = /

3 4

H P ) G ! 4

T E R I Report No. 2006RP23

442 Analysis and compilation of tariff orders ) S 2 $ = ; 4 & ( = G ! ! - +* - < 3 G ! ) P 4 75 6 4 3 4 5 $ 4 2 $J4 D =

=

Table 8.47 Collection of Regulatory Reliability charge

Year FY 2003-04 FY 2004-05 FY 2005-06 RLC billed (Rs Crore) 313.1 1054.4 1163.8

Total

SOURCE

2531.3

ARR and Tariff petition for FY 2006-07

. CE J CE = = = ) J 3 = -

-

J

) = A 4 3 4 = -

Tariff rationalization & innovations in tariff design

CE N ) " ! - 4& 5 $ ) JD = L5 4 ) 5 4) -, ,J& " $ 5 " ) 4 - 4 = L&,J -J 4 &J * L = 4 (. / = -

=

) 5 $ JD - 4 = L, ,6 ,J,6

T E R I Report No. 2006RP23

443 Analysis and compilation of tariff orders

C

CE

J )

4 "

) . -J <J & -J /$ 5 2 $ J

3 5!J ;! /$ 5

) ;/( N ( < $ /( N ( < $ -J ( ) =

2 $7 ; =

J J = )

J

-

-

= -

= M ,&,+ 2 N N 2$ E ,&,+ 2

N N 2$ E

Category wise average tariff & cross -subsidy

= ; CE + *+

Table 8.48 Cost recovery (AR/AC)

FY 2003-04 Average realisation1 Average (AR) cost (AC) Domestic (LT 1) Non Domestic (LT2) Agriculture Agriculture LT Agriculture HT Industry HTP-I (HT industrial ­BMR/PMR) HTP-II (HT industrial ­non BMR/PMR) Total 3.59 3.4 3.08 2.79 4.41 1.94 1.41 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 3.07 117% 111% 100.3% 3.17 2.92 2.97 3.4 3.4 3.40 93% 86% 87.3% FY 2006-07 Average realisation Average AR/AC (AR) cost (AC) 91% 144% 63% 45% 3.08 4.40 1.76 1.44 3.4 3.4 3.4 3.4

N )< &J *

CE

J

=

-

AR/AC 91% 129% 52% 42%

Source: TERI estimates based on revenue and cost figures from tariff order of MSEB for FY 2003-04 and tariff order for MSEDCL for FY 2006-07

1

= &J * &J * *< = -

CE = ;

&J * L !

,4 & = = (

= CE &,4

T E R I Report No. 2006RP23

444 Analysis and compilation of tariff orders CE &J *4 = = = = *6T CE J /( N ( $ = 2 2 = ) ,& T 2 = 9&T + T /( N ( $ 9,T = 6 T 5 9,T &T 5

= = * T

Convergence Index (CI)

C + ,, = &J * CE & = 3 3 CE &J * 3 , 7 = - &,4 = ! - , ( &,4 * = CE &J * , ! & ) ; J = < = ;, ! & &, ( *< - I Q = D R J

1

=

)

CE

0.34 0.33 0.32 0.31 0.3 0.29 0.28 0.27 0.26 0.25 FY 2003-04 (E) FY 2003-04 (A) FY 2006-07(A) CI 0.33

0.29 0.28

Figure 8.11: Convergence index

SOURCE

TERI estimates based on revenue and cost figures from tariff order of

MSEB for FY 2003-04 and tariff order for MSEDCL for FY 2006-07

) CE &J *

- ,*T J CE &J

1

CE -

*J 6

CE

6J

)

T E R I Report No. 2006RP23

445 Analysis and compilation of tariff orders * 2 = 4 ) J - & 6T CE CE J J

Subsidy support

CE ) &J *4 (. /P D= 0 D( = ) = ) D H( (. / Q 4 = (. !)5 (. !)5 D( % ( ); 64 2 D H( .1 ( = ) % - D H( = ) < ( = ) D( ;D (<

- + *9 =

=

-

4

= (. !)5

CE J

Table 8.49 Subsidy estimated, received and disbursed (Rs. Crore)

FY 2003-04 FY 2004-05 FY 2005-06 Estimated Received Disbursed Estimated Received Disbursed Estimated Received Disbursed 723.39 196.8 158.12 29.7 271.19 8.15 258.69 0 237.82 0 313.22 0 292.35 0 196.12 0 236.33 236.33 0 1012.55 1014.83 0

General concession in tariff to agricultural consumers 728.04 728.04 Additional 33.33% drought concession to agricultural consumers 177.35 177.35 General concession in tariff to power loom consumers 160.44 160.44 Concession in FOCA (agriculture and power loom) 0 0 Concession in tariff to metered powerloom consumers as par with concession available to unmetered powerloom consumers during the year 35 35 2001-02 Free power for agricultural consumer 0 0 Total 1100.83 1100.83 S O U R C E ARR and Tariff petition for MSEDCL for FY 2006-07

177.69 0 1285.7

0 1036.27 1574.3

0 1002.48 1553.52

0 1002.48 1490.95

314.88 1563.76

311.32 1562.48

310.86 310.86

Revenue gap

- +6 CE = &J * = CE J )

1

As per order on "State Govt subsidy for providing free electricity supply to agriculture consumers,etc", case no. 28 of 2005.

T E R I Report No. 2006RP23

446 Analysis and compilation of tariff orders

Table 8.50 Revenue gap (Rs. Crore)

Petition Approved Actual Revenue Gap/(Surplus) for FY 2003-04 Revenue Gap/(Surplus) for FY 2004-05 Revenue Gap/(Surplus) for FY 2005-06 Revenue Gap/(Surplus) for FY 2006-07

SOURCE

144 513 1401 3547 (137) (227) 2516

47.25 519.44

Aggregate Revenue Gap/(Surplus) 5462 2152 Tariff order for MSEB for FY 2003-04 and tariff order for MSEDCL for FY 2006-07

CE &J *4 , , *) , & ) ,** ) 2 *<4 ) 0 *+ ) 4 )

1

= 4 4

= =

) 0 0 & = ,** ) = &, ( A = )

3 = 4 ;C = , !

-

=

CE = ,& ) ) = <

*J 64 = ,* = ) *) )

= ;

,* + ) C ) 6J 4

CE , 9 ) , 6 *)

= = CE J 6, ) 4 CE 6J = CE = ,6 ) CE

CE

J -

. ) CE = *J 6

J J

Electricity Duty

- + 6, &J * = CE CE *J 6

Table 8.51 Electricity duty recovered in recent years

Year FY 2003-04 FY 2004-05

SOURCE

Electricity Duty (Rs Cr) Actual 624.68 733.34

Annual accounts for MSEB for FY 2004-05

1

Net ARR is the Gross Annual Revenue requirement minus non-tariff income

T E R I Report No. 2006RP23

447 Analysis and compilation of tariff orders

Governance Public participation

# # $-% $ N . -% $2 ) 3 4 4 #/ # / > ) ;$? 4? ? B ) ,4 -% 4 $4 = $0 (. / = ( (. /P & . 4 ) = (. /U 3 &4 = 4$= # ;$? & ? ? ) = (. /P

U

=

= 9

-%

-%

) $ -% 0 ) 3 4 ) ,&4*& -% = ) = 4 $$4 2 4 = 4 J = - (. !)54 = -% N -% 4 0 4 = 4 - 4 04 $ ( -

4

Timeliness of tariff orders

) $ 2 ) = 4 (. / 0 CE ! &<

T E R I Report No. 2006RP23

CE

(. / &J *4 - ! $ > & &J * ( = ) * = , ! ,

&

= -

&;

-

448 Analysis and compilation of tariff orders

2

= 4 CE 6J C (. !)5 L 6 CE 6J 0 - &, ! = J + C 4 (. !)5 ); ) J -

H =

-

- I 4 I

CE CE CE

*J 6 J *J

CE CE

CE -

6 (. !)5 *J 64 CE

6J I

- ( 6 (. !)5 -

< = 4 CE J I CE = J ) J

4 (. !)5 ( H -

CE - +6 = CE &J *

Table 8.52 Sequence of events

Event Due date of submission of order Submission of petition Submitting of revised Petition Order issued Gap b/w submission of revised petition and issue of order S O U R C E Tariff order of MSEB for FY 2003-04.

Order for FY 2003-04 December 2002 April 7, 2003 July 23, 2003 March 10, 2004 229 days

Order for FY 2006-07 December 31, 2005 February 28, 2006 May 26, 2006 October 20, 2006 147 days

Consumer advocacy and redressal mechanism

! D = &4 ( C = 4 ) H @ 0 = / I = ;(. /<P ( M = 4 = . C H C 4 ) I ; = C <4 ) GH J D = B C 4 B 4 ( ) ;) < 4 = &

"

; <

T E R I Report No. 2006RP23

449 Analysis and compilation of tariff orders ) .- I ( I = 4 ( 4 . H H ! *4 D= ) . 4 -

C

% 9 (. /4 ( ) ;) GH < . = HG (U =

4

D = &4

' 2 K HG ) ( . ) ;HG (< = 3 = 4 =

) ;2K < H 4 0 ;D !<4 ) ;H< = H N = ! - . 2K ) H H 0 = HG ) ( 3 ;H <

=

HG ) (

Anti-theft

= (. !)5 . CE = I = I ! . ) I G! = 0 & F. G (. !)5P J 4 0 "

= = 0

0 = I

3 =

=

;HG (<

I

= =

T E R I Report No. 2006RP23

-

.

=

450 Analysis and compilation of tariff orders 4 - + 6& = = - (. /N (. !)5 3 6T

Table 8.53 Cases of anti theft and recovery (January 2005 to December 2005)

Amount assessed (due to No of theft cases detected 2176

SOURCE

Theft amount recovered (Rs. Crore) 8.32

theft) (Rs crore) 11.43

Tariff petition for MSEDCL for FY 2006-07

(. !)5

C

J

4

Open access

( ) = - + 6* = > *

Table 8.54 Open access schedule

Contract Demand of Consumer Not less than 5 MVA Not less than 2 MVA but less than 5 MVA Not less than 1 MVA Maharashtra electricity regulatory commission (distribution open access) Regulation issued by MERC in June 2004.

SOURCE

Date on which open access will be allowed April1, 2005 April 1, 2006 April 1, 2007

* ( $

( ) ) J -

%( ' = J 0 0 = 3 ( ) = ( J ) = T "

4

= J -

- 4 , J,,

T E R I Report No. 2006RP23

451 Analysis and compilation of tariff orders

Box 1: Formula to be adopted for computation of Cross-subsidy surcharge S = T ± [C (1+ L / 100) + D] Where, S is the surcharge T is the Tariff payable by the relevant category of consumers; C is the weighted average cost of power purchase of top 5% at the margin excluding renewable power and purchase under UI D is the Wheeling charge L is the system loss for the applicable voltage level, expressed as a percentage L should be inclusive of transmission loss. For intra-State transactions, transmission loss prescribed by the Commission for the STU should be considered, while for inter-State transactions, additional loss compensation as provided by CERC in its Open Access Regulations should be considered Salient features 1. All OA transactions will have to pay the above cross-subsidy surcharge, except in the following cases: For the quantum of power which is not being supplied by the Utility as per the Orders issued by the Commission from time to time. Currently, load restriction of 10% and 20% is applicable to continuous and noncontinuous industry. Therefore, consumers in these categories will be permitted to purchase this quantum of energy without payment of cross-subsidy surcharge. Open access consumer's purchasing power from renewable sources of energy. Open access transactions as on the date of effectiveness of the EA 2003 2. 3. 4.

Cross-subsidy surcharge should be calculated for the base year of FY 2006-07 and this surcharge should be reduced to 20% of the opening level of cross-subsidy surcharge by 2010-11. New consumers will not be exempted from levy of cross-subsidy surcharge Open access transactions undertaken using liquid fuel based thermal generation will also have to abide by these charges

S O U R C E MERC order on "Methodology for computation of cross subsidy surcharge for open access transactions" dated September 2006.

CE J = 0 J = = = 4 ; ) - L . 2 . ) ( ) J J 4 2 ) 0 * +,

J

4

) - L 6T

- = J

L 4 0A 4 A

= -

J -

6T = <

Appeals against orders

(

)

= 2

" $ )P% =

7/. .

(. /J! $ $

T E R I Report No. 2006RP23

452 Analysis and compilation of tariff orders ) . " ( > - 0 ( ) ( (. !)5 ) - ( / . & 5 ) 0 D ) ( / .J $ ,+ H 9 0 ) $ ( ) ( )4 2 ) .

(. !)5 6 5 . (

9

( -

Staffing

( ) ! ) ; 4 3 4 < - = J ( J 4 .

Directives issued by MERC and their implementation

CE &J * 4 ) = (. / =

2

= 4 ) (. / (. / ) = )

= = = " = -

P=

= 6 Q (. / R

(. / (. / !. ( !. ( -

!. ( = = ( !

(. / (. /

= =

-

-

) = ) =

T E R I Report No. 2006RP23

453 Analysis and compilation of tariff orders H - 4 ( (. / (. !)5 ) = ;CE = (. !)5 . ; + 66

Table 8.55 Directives issued and their compliance

Directives issued in tariff order FY 2003-04 and from time to time To install meters for all the flat rate categories, viz. LT and HT agriculture, Power loom and Municipal Councils. Status on compliance (as submitted by MSEDCL to MERC in tariff petition for FY 2006-07 All flat rate category consumers are metered except LTAgriculture. As on November 2005 9.09 Lakh Agricultural consumers were metered. All new Agriculture connections are released with meter MSEB stated that it has undertaken efforts to reduce T&D losses through its time bound Internal Reforms Program. The T&D loss level for the last 4 year are as follows: Year T&D losses FY 2001-02 39.17% FY 2002-03 38.59% FY 2003-04 38.2% FY 2004-05 35.28% FY 2005-06 (April to 32.97% October 2005) There are some measures taken by MSEDCL(erstwhile MSEB) for the Load management such as 1) Single phasing Scheme 2) Gaothan feeder separation scheme 3) High Voltage Distribution System 4) Reactive Power Management(LTLMS) 5) Energy Lighting Programme 6) Gram Urja Bachat Yojana 7) Energy Audit & Water management of lift Irrigation 8) Akshay Prakash Yojana. MSEB has submitted the mechanism for levy of reliability charges to MERC . Voltage wise Asset Classification information was provide in the ARR and tariff petition for MSEDCL for FY 2006-07 MSEDCL stated that it had already initiated number of measures to reduce the T&D losses and the directives have already been issued to all the zones and the monitoring is being done on regular basis by the headquarters MSEDCL has completed the DTC metering program and about 51762 DTCs have been metered so far (excluding AG sampling of 6760 DTCs). The Energy Accounting process has also been established for 46642 DTCs as on 30/10/05 and the necessary steps have been initiated for the reduction of DTC losses. All zones are instructed to bring the DTC losses below 25%

>

CE *J 6 J J = CE

J

4 CE = 6J <

&J *4 CE CE CE = (. !)5

&J * = = -

<

To reduce T & D losses to 26.87% -

To Implement DSM Schemes

To levy Reliability Charges for HT industry To start maintaining Voltage-level wise asset classification data to enable the computation of the consumer-wise cost to serve.

The Commission does not agree with the MSEB's suggestion of focusing on metering target only and directs the MSEB to pursue T&D loss reduction target as well as the metering target.

T E R I Report No. 2006RP23

454 Analysis and compilation of tariff orders

Directives issued in tariff order FY 2003-04 and from time to time Status on compliance (as submitted by MSEDCL to MERC in tariff petition for FY 2006-07 MSEDCL stated that all 11, 22 & 33 kV feeder' metering has s been completed. As on NOV. 05, 9.09 Lakh Agriculture consumers are metered & 16.65 lakh Agriculture consumers remained unmetered. It is proposed to provide meters to all Agriculture consumers by selecting a division per Zone, to be completed in next six month. As per Commission guidelines, a Road Map is prepared to provide meters to all Agriculture consumers. The copy of the road map was provided in the tariff petition for MSEDCL For FY 2006-07 MSEDCL proposed to meter all balance DTC' (about 1,60000) before March 2007. In s this regard material procurement is in process

To adhere to the deadline for achieving 100% metering. The MSEB may consider innovative solutions like group metering, feeder level metering, etc. to achieve the metering targets.

To utilize information available from Energy Audit data on LTagricultural feeders for assessing unmetered LT-agricultural consumption for future submissions. Further, the MSEB should modify the sample size/ modify quality of sampling in line with statistical sampling norms, to ensure that the results of the energy audit are truly representative of the pattern of agricultural consumption in the entire State. Any abnormal variation in assessment results as compared to LT-agricultural norm should be highlighted and analyzed. The MSEB should monitor 12 month moving average of T&D loss and metered consumption every month. MSEB should install ToD meters for all consumers with a connected load of over 20 kW, so that ToD tariffs can be availed by these consumers at their option.

MSEB has already initiated the process of improving the quality & quantity of samples. The number of samples has been increased from 1701 nos. in 2000-01 to 6760 nos. upto Oct 2005 & balance 1,60000 DTC will be metered before March 2007

The MSEB should further progress from Energy Accounting (i.e. compilation of data) to Energy Audit (i.e. to utilize Energy Accounting data to reduce the high level of losses on identified feeders).The MSEB has not submitted any concrete action plan to address the high level of losses demonstrated by particular areas. The MSEB should apply the principles of `ABC Analysis' and identify the areas, which will generate the maximum revenue at the least cost and undertake loss reduction programmes in these areas immediately.

Levy of Fixed Charges ­MSEB to take all possible measures to maintain the voltages within the prescribed limits, and to limit the load shedding hours to the minimum. Since the implementation of Availability Based Tariff (ABT) in the country, the grid discipline has improved substantially, and most other States are managing their energy requirements such that the incidence of paying UI charges is minimized. Moreover, there is an opportunity for the MSEB to purchase power at times of high frequency at very cheap rates, and the MSEB should actively explore this option to reduce its costs. The MSEB should maintain grid discipline as envisaged under the ABT regime. The MSEB, on the other hand has been incurring substantial expenditure on account of UI charges, which cannot be allowed in completely. Hence, the

MSEDCL stated that MSEB vide letter no 09777 dtd 7.04.2004 requested MERC to limit application to industrial and commercial consumers only, with connected load in excess of 20 kW. All CT operated meters are static TOD meters which are being installed to LT industrial/ commercial installations. Consumers having load more than 20 kW have TOD meters or are being replaced with TOD meters. Procurement & replacement is a continuous process. The Energy accounting report is forwarded to all the O&M zones/ Circles/division wise for imitating the steps for reduction of losses. The Managing Director, MSEDCL also conducts review for the reduction of losses from time to time & in the CE' review meeting on monthly basis. Further the internal s Reforms program programme is being implemented with the objective of reduction of T&D losses. In this program DTC energy accounting has been undertaken & particularly the targets of loss reduction has been given to Nagpur(u) Zone, Aurangabad Zone, Beed Zone having high losses. DTC loss reduction program is under progress in all the O&M Zones. MSEDCL stated: 1) Commission is appraised of the situation from time to time 2) Load shedding is done strictly in accordance with guidelines given in Principle & protocol of Load shedding order

MSEDCL stated that as per directives of MERC , the ABT mechanism is used to meet the energy requirement in the most optimal way & has resulted in improved grid discipline. The practice envisaged by MERC is implemented such that more is power purchased through UI at higher frequency when rates are less (cheaper). However, due to wide gap between generation & demand it is difficult to maintain the normative level of 1% of load energy input requirement.

T E R I Report No. 2006RP23

455 Analysis and compilation of tariff orders

Directives issued in tariff order FY 2003-04 and from time to time Commission has allowed UI charges at a normative level of 1% of total energy input requirement

SOURCE

Status on compliance (as submitted by MSEDCL to MERC in tariff petition for FY 2006-07

ARR and Tariff petition for MSEDCL for FY 2006-07

Regulatory initiatives

Promotion of renewable energy

H J , 4 J 7 A / . ( ( . ) U ) - $ * H$ H U ; $ H< H 4 ;<( 64 JI J 6 *4 & 6 94 6 4 * 3 & ;" <J 7 ) H = - ( )

= +4 = B

( S

) 3 - $ P - +6

Q$ $ . =

.

R

=

Table 8.56 Renewable Purchase Specification (RPS)

Year FY 2006-07 FY 2007-08 FY 2008-09 Percentage 3% 4% 5%

FY 2009-10 6% S O U R C E MERC Order on Long term Development of Renewable Energy Sources and associated Regulatory (RPS) Framework dated August 16, 2006

3 ( =

-

T E R I Report No. 2006RP23

456 Analysis and compilation of tariff orders + I / J (E N 3 4 ! $ . J 4 CE 9J, 4 ) # # ! = = H 0 @ $ . 3 = 0 SJ P - =

$ H4 J) = 3 ) 4 ( ! 5 ; . < = 4D= 4(

J 4

4

0 4 $ H4

Demand Side Management (DSM)

(. / = ! = < . ( ! ;( = . ( 4 - (. / ( ! 1" $ 0 E % " ;D < = = T 6 = A ( = F 5 4 &&T = . $ . = D =

Based on information available on Website of Maharashtra State Distribution Company, www.mahadiscom.in

1

= .

0 = -

= 3 =

-

. = J &&T4

. 04

) "@ L A

" (

T E R I Report No. 2006RP23

457 Analysis and compilation of tariff orders = . . = H !. ( ; < ;-< 0 CE ) "J D D 5. (A @ = 3 5 (. !)5 0 = ,,* (F D - ( ! @ % / = E % & D , ) 0 ! . 4 ( = ( = 96 3 )C5 0 @ % / E % J 4 (. !)5 = = = (. !)5 ; <4 & 0 )C5 = 4 " )C5 = , 4 = = C = = = = 3 4 = 0 D "A = @ . J J

4

+,9 D H -

Time of Day Tariff (ToD)

! H - I J J 0 ! 0 = ) CE H! - +6 J 2 CE 3 H 4 ) CE J ! 0 = 0 J , !

T E R I Report No. 2006RP23

458 Analysis and compilation of tariff orders

Table 8.57 ToD tariffs in FY 2006-07

Timeslot 2200 hrs-0600 hrs 0600 hrs-0900 hrs & 1200 hrs-18oo hrs 0900 hrs-1200 hrs 1800 hrs-2200 hrs

SOURCE

Existing ToD tariff

(w. r. t -0.85 0 0.60 1.00

Revised ToD tariff (w. r. t based tariff) -0.85 0 0.80 1.10

based tariff) (Rs/unit)

Tariff order for MSEDCL for FY 2006-07

! 2 42 5 F JD ( )4 ) " 4

7 ( = $ 0 4 2 F J.

J

MYT framework

64

= (E C %

0

4 5 @ ! I J ) , - ( ) - + 6+

Table 8.58 Important regulations issued by MERC

Regulation

N -

= 6 ) J

J = (E ) 9J, CE J + = - &,4 (E CE 9J, 2 = 4

J +4

+J 9 3

- (

)

Date of issue April 20, 20006 February 15, 2006 January 20, 2005 January 20, 2005 April 21, 2005 June 5, 2005 August 23, 2005 December 3, 2004 June 10, 2004 June 10, 2004 June 10, 2004 June 10, 2004

Consumer Grievance Redressal Forum & Electricity Ombudsman Regulations, 2006 State Grid Code Regulations 2006 MERC (Standards of Performance of Distribution Licensees, Period for Giving Supply and Determination of Compenstation) Regulations, 2005 MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005 MERC (Transmission Open Access) Regulations, 2005 MERC (Distribution Open Access) Regulations, 2005 MERC (Terms and Conditions of Tariff Regulations, 2005 MERC (Fees & Charges) Regulations, 2004 Transmission Licence Conditions Regulations 2004 Distribution Licence Conditions Regulations 2004 Trading Licence Conditions Regulations 2004 Procedure for filing appeal before the Appellate Authority Regulations 2004

MERC (Standing Legal Counsels : Terms & Conditions of Appointment) Regulations, 2004 December 3, 2004

T E R I Report No. 2006RP23

459 Analysis and compilation of tariff orders

Conduct of Business Regulations 2004 Terms and Conditions of Tariff Regulations 2004 Guidelines for in-principle clearance of proposed investment schemes Terms and Conditions of Appointment of Consultants Regulations 2004 Consumer Grievance Redressal Forum & Ombudsman

SOURCE

June 10, 2004 June 10, 2004 February 9, 2005 June 10, 2004 December 10, 2003 October 28, 2005

State Advisory Committee Website of MERC - www.mercindia.org.in

Status of annual accounts

(. / = (. !)5 - I CE CE &J * (. !)5 (. / CE CE *J 6 6J

6J

Power sector rating

- + 69 = 3 ( ( $

Table 8.59 Rating of Maharashtra power sector

FY 2003-04 Rank Score 5 60 FY 2004-05 12 37.25 FY 2005-06 8 35.4

0 4

= 6 , -

(

> 3 +

A &4 > 6 4

- 0

$

' D 5

.

6

4

C

N ,9 + -

= &, ,T

( CE 5 !

6 *J 6 ;6 T< = ; < =

T E R I Report No. 2006RP23

460 Analysis and compilation of tariff orders * ( (. / 4 = 0 + &T ( D H( CE = 6J = = 0 ) ,+T CE 6J &T = , &T > 6 =

-

% (. /N (. !)5 ) = % (. /N (. !5 G ! = &+T CE ,J &&T CE 6J ) L G ! CE *J 6 CE 6J 4 4 J % C CE J 4 ( ) = G ! &+T $ 3 6 +T CE &J * + 9T CE J T CE &J * CE 6J G 3 D CE &J * CE T *J 6 = ( CE CE ( J *J 6 * CE H J ( 4 6J 2 I = - 0 &J *

4 0

= 3

T E R I Report No. 2006RP23

461 Analysis and compilation of tariff orders

CHAPTER 9 Uttaranchal

Introduction

@ ) 5 = = ;@$ )5< > *4 @$ )5 $ ;$ )@5< @$ )5 ) 0 = 4 @ $ @ C $ ,

@ @

5 -

@ . CE &J * .

) @

) ) -

) < & .- I ! = ) -

; 4 & <

1

@

@$ )5 )

= @$ )5 ;@ $ $ $ - I 4 2 = 4 ) = @ = ) 4 ;$ )@5< 4) = ! ) 6 CE 2 )

5 . D= @$ )5 0

@$ )5 &J * 3

CE

CE CE *J 6 ;@$ )5<

6J 6J

Demand supply gap

The two corporations, UPPCL and UPCL agreed upon the division of assets and liabilities on 12th October 2003 and the State Government issued the policy directives on 16th October 2003. The tariff order for FY 2003-04 was released by the Commission in September 2003. UPCL appealed to the High court for a re-look at its tariffs after the transfer scheme came into effect. The High Court asked the Commission to review the costs based on the additional information made available by UPCL and on the basis of the transfer scheme.

1

T E R I Report No. 2006RP23

462 Analysis and compilation of tariff orders 0 4 6 @ ,& 6 T CE 4 = 6J 4 6 ,6T = CE *J

@ =

= 9 T CE 6J CE &J * CE

- 9, 6J

C

9,

Table 9.1 Demand/Supply Scenario

Power Supply Position

FY 2003-04

Requirement (MU) Availability (MU) 4197 4108 2.17 777 737

FY 2004-05

4628 4470 3.53 846 794

FY 2005-06

5155 5008 2.9 991 857 13.52

Energy (Mus)

Shortage (%) Peak Requirement (MU) Peak Met (MU)

Peak (MW) Peak Shortages (%) 5.15 6.15 S O U R C E Monthly review of power sector (executive summary), Central electricity Authority, www.cea.nic.in

0.05 0.00 Shortages -0.05 -0.10 -0.15 Year -0.14 2003-04 -0.05 2004-05 -0.06 2005-06*

Shortage (MUs)

Peak Shortage (MW)

Figure 9.1 Power supply position S O U R C E Monthly review of power sector (executive summary), Central Electricity Authority, www.cea.nic.in

Installed capacity

&, H @ 4* (A , 4 (A = - 9 = , (A * (A 9 =

C

Table 9.2 Installed capacity for Uttaranchal

Capacity (MW) State Sector Private/licensee Share in Central Sector Total Available Capacity

FY 2005-06

1019.71 400 740.56 2160

%

47% 19% 34% 100%

T E R I Report No. 2006RP23

463 Analysis and compilation of tariff orders

S O U R C E http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp (as on 31st October 2006), Accessed during May-July 2006

Share in central sector 34%

State Sector 47%

Private/licensee 19%

Figure 9.2 Installed capacity MW (ownership)

S O U R C E http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp (as on 31st October 2006)

Table 9.3 Installed capacity by fuel

MW

Hydro Thermal Renewable Nuclear Total October 2006) 1818.16 301.05 32.77 16.28 2168.26

% share in total

84% 14% 2% 1% 100%

S O U R C E http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp (as on 31st

2 ,*T P 9& = 3 @

Renewable 2% Nuclear 1%

@ = C

Thermal 14%

Hydro 83%

Figure 9.3 Fuel Mix

S O U R C E http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp (as on 31st October 2006)

T E R I Report No. 2006RP23

464 Analysis and compilation of tariff orders @ - 3 = -

Box 9.1 Hydro potential in Uttaranchal1

The state has an identified hydropower potential of about 15000 MW. Out of this potential, only about 8%has been developed so far. The generation capacity addition plan for the X plan (2002-07) had envisaged an addition in hydropower capacity by 4383MW.Central sector utilities viz. NHPC and THDC have taken lead in developing hydro projects in State for over 80%of planned capacity addition for X Plan period followed by private sector (9%) and State Sector (7%). However, as per present indications and based on the information so obtained from UJVNL,it is likely to be 2984 MW against 4383 MW for Xth Plan period .The projects slipping in to the XIth Plan period(2007-12)include 400 MW Koteshwar and1000 MW Tehri II in central sector, being developed by THDC.

Source: Study on "Hydropower Development in India: A Sector Assessment' undertaken

by TERI

@ ; H -

J+ 7 = - < = = ; < -

J ) ; @$ )5 D @$ )5 < . =

L ;)D < . )D . +6T ,6T = CE

J &

CE

6J

=

- 9*

Table 9.4 Generation over the years in Uttaranchal state sector only (UJVNL only)

Year FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 MU 3426 3392 3111 3493

S O U R C E CEA monthly generation report (actuals)

CE

- = 4 *J 6

@> 5 F

CE ? 6J

1

) - ; * (A< *J 6 + 6 (@ CE ;,** (A< & , (@

6J

& (@ . & + (@ CE

Study on "Hydropower Development in India: A Sector Assessment' undertaken by TERI

T E R I Report No. 2006RP23

465 Analysis and compilation of tariff orders

CE ) ,J 2 % = 4 = % ;. , J*+ (A< - 96 = = ( /

0 4= L$ ( 4 ;. J & * (A< =

Table 9.5 Installed Capacity from FY 2001-02 to FY 2005-06

FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 State sector 500 978 986 1019 S O U R C E Figures for FY 2001-02 to FY 2003-04 are from the SEB report published by Power Line Research, India Infrastructure. The figure for FY 2005-06 is from Monthly review of power sector (executive summary), Central Electricity Authority.

Analysis of tariff orders FY 2003-04 and FY 2005-06

CE &J * CE = CE = = = = = = &J * S CE @$ )5 CE = 0 = 3 *J 6 C CE 6J 0 ; @$ )5 = 4 $ )@5 @$ )5 $ )@5 ; J. @$ )5 $ )@5 6< ; = CE % < CE J = 0 6J = 3 3 0$ )@5< ( CE 6J CE ) &J * = CE 4 6J &J *4 = ) &J * ; . CE &J * ; ! &< 3 = *< -

CE &J * &J * = P 4 CE 0

4 3 =

) CE -

*J 6 CE )

= *J 6

4 -

= @$ )5

T E R I Report No. 2006RP23

466 Analysis and compilation of tariff orders

FY 2002-03 in retrospect

@$ )5 $ G5 , *, ) CE ) J &

Consumption and access Sales/Demand estimation

CE @$ )5 CE @$ )5 = &J * @ )4 ;CE @$ )5 J & = CE ,J < CE B ) = 4 J & Q 0 4 R P 0 3 P 4 = - R Q 1

&J *4 &J * =

)

= = -

= 4

,J ) %

-

Detailed methodology for sales estimation

) CE CE J & 4 4 C ) 9* = = CE ,J = 4 ) % I CE = J & 0 &J * &J * J J CE

1 The Commission argued that the sales (power position) increased due to separation of Uttaranchal from Uttar Pradesh after which most of the hydel stations came to Uttaranchal.

T E R I Report No. 2006RP23

467 Analysis and compilation of tariff orders

4000 3000 2000 1000 0 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06

Total Sales

Figure 9.4 Trend in sales (MU)

S O U R C E Tariff order for UPCL for FY 2003-04 and FY 2004-05

Method for estimating un-metered consumption (Agriculture)

&J *4 ) $ A ;$ - A < N /2$ N ; N /2$ N < P & 6 CE

@$

+ &+ N /2$ N 9 &

- 3 )

-

Box 9.2 Procedure for estimating un-metered consumption FY 2003-04

1. Considered monthly CS-3 statement for financial year 2002-03 filed by petitioner 2. Accepted the petitioner's filing of the proportion of unmetered consumers and residential societies in the domestic category and the unmetered consumption in the commercial category 3. Adopted the same load factor for unmetered domestic and commercial as that of metered category, since both are receiving 24 hours supply 4. The consumption of Private tube wells was estimated assuming a specific consumption of 68.38 units per BHP per month as per Tyagi Committee Report, which implies tube well utilization rate of 1100 hours per kW per year 5. Public lamps consumption calculated on the basis of 12 hours use for urban areas and 10 hours for rural areas 6. State tubewell consumption based on the estimate of 3562 units per pump per month as followed by UPERC (assuming 85% of pump sets are working on an average, average rating of pumps sets of 18.73 BHP and average usage of pump sets of 10 hours per day)

Category-wise sales

- 9 = CE = &J *

T E R I Report No. 2006RP23

468 Analysis and compilation of tariff orders

Table 9.6 Category wise movement in sales (MU)

Consumer Category 1 2 3 4 a) b) c) 5 6 a) b) 7 8 Domestic Non-domestic Public lamps Irrigation Private tube wells State tube well Pump canals Public water works LT and HT industry LT industry HT industry Temporary supply Bulk supply Proposed 1179.32 289.89 24.14 389.49 301.49 78 10 171.8 573.37 93.26 480.11 Approved 974.09 236.2 27.61 145.48 103.33 30.17 11.98 165.2 588.42 87.8 500.62 0.19 1.41 Actuals 987 523 31 363 269 88 63 136 656 90 566 0 21

2698 Total 2628.01 2138.6 S O U R C E UPCLTariff order FY 2003-04 for proposed and approved figures and UPCLTariff order FY 2005-06 for actuals

&J *4 = ) @$ C )5 4 = %

CE

,+T T ) 4

+ T) CE = - 9 6J = CE

*J 6

Table 9.7 Sales update for FY 2004-05 and proposed vs. approved sales for FY 2005-06

Consumer Category FY 2004-05 (1) Domestic Non-domestic Public lamps Private tube wells Government irrigation system Public water works LT and HT 823

1 2

Proposed

Approved FY 2004-05 (2) 1045.41 595.35 36.02 101.59 40.18

Proposed FY 2005-06 (3) 1140.1 678.54 54.94 340.49 126.43

Approved FY 2005-06 (4) 1121.25 684.58 36.16 102.65 40.88

Actuals2 FY 2005-06 1077 686 52 139 37

% (1) -(2` ) -1.00% 0.06% -21.70% -67.23% -63.47% -0.10%

% (3) -(4) -1.65% 0.89% -34.18% -69.85% -67.67% 0.00%

1056 595 46 310 110

143

142.86 823.1

150.01 940.61

150.01 940.61

176 922

0.01% 0.08%

0.00% 0.00%

Includes the category of "extra state consumer" with consumption of 2 MU in FY 2003-04. Based on six months actual (April-September 2005) given in ARR petition for 2006-07 of UPCL

T E R I Report No. 2006RP23

469 Analysis and compilation of tariff orders

Consumer Category FY 2004-05 (1) industry LT industry HT industry Railway traction Others 11 -10.31% Total 3094 2784.51 3442.77 3087.79 3103 -10.00% S O U R C E Tariff order FY 2005-06 for proposed and approved figures and UPCL Tariff petition of UPCL FY 2006-07 for actuals 99 724 0 99.08 724.02 107.99 832.62 11.65 107.99 832.82 11.65 94 828 14 0.00% 0.02% 0.00% FY 2004-05 (2) FY 2005-06 (3) FY 2005-06 (4) FY 2005-06 Proposed Approved Proposed Approved Actuals2 % (1) -(2` ) -1.00% % (3) -(4) -1.65%

-

CE , T=

*J 6 4 )

CE

6J

4 - @$ )5

= J 6T ) G !

-

) @$ )5 -

3 =

= - ) = @ = @ $ < = = $ CE - 9+ CE &J *4 CE *J 6 CE CE ) * J+ @ ; < ; ;@ @ <4 $ = J+ @ = = 4 ) )-

*J 6 &J * 6J

CE -

6J =

=

T E R I Report No. 2006RP23

470 Analysis and compilation of tariff orders

Table 9.8 Share of each category in total sales (%)

Actual Consumer Category Domestic Non-domestic Public lamps Private tube wells Government irrigation system Public water works LT and HT industry LT industry HT industry Railway traction Others Total 2005-06 36.58% 19.20% 1.15% 9.97% 3.26% 5.26% 24.31% 3.34% 20.98% 0.00% 0.26%

100.00%

Approved 37.54% 21.38% 1.29% 3.65% 1.44% 5.13% 29.56% 3.56% 26.00% 0.00% 0.00%

100.00%

Approved 36.31% 22.17% 1.17% 3.32% 1.32% 4.86% 30.46% 3.50% 26.97% 0.38% 0.00%

100.00%

FY 2003-04 FY 2004-05 FY 2005-06

S O U R C E TERI estimates based on sales information available in Tariff order FY

= & - @$ )5 C ,T CE &J * T CE ) CE CE = *J 6 CE &J * 6J 2 6J =

C

96 CE

1200 1000 800 600 400 200 0

= ,J

% CE 6J

Sales (MU)

2001-02

Domestic

2002-03 FY 03/04 FY 04/05 FY 05/06

Commercial Irrigation Industrial

Figure 9.5 Growth in sales across major categories

S O U R C E Tariff order of UPCL for FY 2003-04 and FY 2005-06

) D 6J !

+ 6T ) D

,J &T ,+T =

CE

)

T E R I Report No. 2006RP23

471 Analysis and compilation of tariff orders ) D ,+T +T ) D

N @ - @$ )5 CE * &J )

Number of consumers and connected load

- 99 C =

Table 9.9 Growth in consumer base over the years

Year FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 Total Consumer Base (in ' 000) 841 868 901 970 1056 Connected load (MW) 1466 1548 1662 1772 2053

9

=

-

S O U R C E http://www.upcl.org/growthsale.html

2500 2000 1500 1000 500 0 2001-02 2002-03 2003-04 2004-05 2005-06

Total Consumer Base (in '000)

Connected loadn(MW)

Figure 9.6 Growth in consumer base and connected load (FY 2001-02 to FY 2005-06) S O U R C E http://www.upcl.org/growthsale.html

J , CE 6J

CE

6J ) D

) D + 9T

6

T - = CE

CE ,J

Consumer Mix

- 9, = CE &J * % CE 6J

T E R I Report No. 2006RP23

472 Analysis and compilation of tariff orders

Table 9.10 Consumer mix (Number of consumers)

Category Domestic Non-domestic Agriculture Industry Total FY 2003-04 777608 90648 18116 8305 901000 FY 2005-06 839531 108692 17293 5964 1056000

S O U R C E UPCL tariff order and UPCL petition for FY 2005-06

CE -

&J *

CE 6J H= 4 +T

, T 4 4 T - = 4 =

= - 9 ,, = CE

+G

* 6T %

&J *

CE

6J

Table 9.11 Connected load (KW)

Category Domestic Non-domestic Agriculture Industry Total FY 2003-04 974033 201613 115598.8 261623 1662000 FY 2005-06 997000 364000 112162 315000 2053000

S O U R C E Tariff order FY 2003-04 and UPCL petition for FY 2005-06

CE 4 T &T - + T T CE

3 &J *

&T CE 6J

= -

4 B - 9, 6J = % 3

-

Table 9.12 Consumption mix and connected load

Category Domestic Non-domestic Agriculture Industry S O U R C E TERI estimate Consumer Mix Connected load 79.5% 10.29% 1.64% 0.56% 48.56% 17.73% 5.46% 15.34%

CE

6J

4 *+ 6T 6 T ,6T

+ T

-

-

J

T E R I Report No. 2006RP23

473 Analysis and compilation of tariff orders , T ,+T , *T 6 6T % CE 9 ,&

Table 9.13 Connected load per consumer (KW)

Category Domestic Non-domestic Agriculture Industry FY 2003-04 1.25 2.22 6.38 31.50 FY 2005-06* 1.19 3.35 6.49 52.82

-

&J *

CE

6J

=

-

*these are based on figures proposed by the Commission S O U R C E Tariff order FY 2003-04 and tariff petition for FY 2005-06

, 6 0A &J * , ,99 0A CE 6J 4 &J * & &6 CE 9 ; < = 6J 6J 4 = = = = = J 4

CE -

0A C CE

CE

Others 6% Domestic 27% Industry 36% Commercial 28%

Agriculture 3%

Figure 9.6 (A) Category wise share in total Revenue in FY 2005-06

S O U R C E Tariff order for UPCL for FY 2005-06

- 9 ,* =

=

= = -

T E R I Report No. 2006RP23

474 Analysis and compilation of tariff orders

Table 9.14 Average consumption per consumer

FY 2003-04 Consumption (approved) (MU) 974 236 145.5 588.42 Average Consumption per consumer (KHW) 1252.56 2603.48 8031.57 70851.29 FY 2005-06* Consumption (approved) (MU) 1121.25 684.58 143.53 940 Average consumption per consumer (KWH) 1335.57 6298.35 8299.89 157612.34 2924.04

Category Domestic Non-domestic Agriculture Industry

No of Consumers 777608 90648 18116 8305

No of Consumers 839531 108692 17293 5964

Total 90100 2138.6 2373.58 1056000 3087.79 * while the sales (consumption) is based on the approved figures, the number of consumers is as per the figures proposed by UPCL S O U R C E Tariff order FY 2003-04 & FY 2005-06 and Tariff petition for UPCL for FY 2005-06

-

4 = < 3 J = ;

Status of rural electrification

Village electrification

- 9 ,6 @

Table 9.15 Status of village electrification

Total numbers of villages in Uttaranchal(Census 2001) Total number of villages Electrified as on 31/03/2005 Total Number of villages Electrified by UREDA as on 31/03/2005 Balance villages to be Electrified Number of villages proposed under RGGVY scheme S O U R C E UPCL website 15761 13998 604 1159 782

=

- 9 ,6 D F DE - 9, = 4 + H T

+9T = ,,69 = =

= =

Table 9.16 Status of household electrification

Total number of rural Households 1196157 Households having Electricity 602255 % Electrified Households 50.03 Unelectrified Households 593902 % Unelectrified Households 49.65

S O U R C E www.powermin.nic.in

T E R I Report No. 2006RP23

475 Analysis and compilation of tariff orders 6 T ,,9 ,6 =

Efficiency improvement Transmission & Distribution (T&D) loss estimation

@$ )5 G ! J & &J * ) = ) J CE 4 &6 &&T4 CE 0 &J *4 I = CE &* , T CE

4 J &

= 4 =

= * , T I $ A4

G !

) &T = = = =

Table 9.17 Target loss level (%)

Target /Approved loss level Year FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 (%) 46.17 42.17 38.17 34.17

,T 4 CE * , T; 0 T< ) 3 T &J * = 3 = @ 0 *T

= *

)

=

S O U R C E Tariff order for UPCL for FY 2003-04

CE G ! = *T )D . - @$ )5

*J 6 =

CE 6J - 9 ,+ ;

4 @$ )5

= 3 < CE

- 9 ,+ = &J * CE

= 6J

T E R I Report No. 2006RP23

476 Analysis and compilation of tariff orders

Table 9.18 T&D losses (as claimed by UPCL)

FY T & D loss (%)1 Losses for sales within state Loss external to UPCL system Total T&D losses 2002-03 31.50% 4% 35.5% FY 2003-04 30.90% 4% 34.9% FY 2004-05 29.28% 4% 33.28% FY 2005-06 27.30% 4% 31.3%

S O U R C E Tariff order for UPCL for FY 2005-06

) @$ )5 CE &J * = = G ! )

0 * , T % CE - @$ )5 = = J & -

G ! &J *4 @$ )5 ; = &+9 6 (@ ) ** (@ ) / 3 & 9 =

-

) CE

4 = -

=

< ,*6 6 (@ G !

=

0

- @$ )5

Box 9.3 Measures to reduce commercial losses2

1. Concentrated action on divisions with highest arrears in industrial and commercial categories 2. Formation of pilot groups to resolve disputes and increase realization 3. Drive initiated to replace all electromechanical meters by pilfer proof electronic meters with cubical at commercial and industrial establishments 4. All new connects released with pilfer proof meters 5. Regular checking by utility staff 7. Detailed analysis of revenue information to maximize revenue with optimum efforts S O U R C E Tariff order for UPCL for FY 2003-04

Collection efficiency

- 9 ,9 CE = *J 6 CE ,J

Table 9.19 Collection efficiency from FY 2001-02 to FY 2004-05

These figures are taken from the Uttaranchal Tariff Order for FY 2005-06. The figures for 2002-03 are actuals, figures for 2003-04 are provisional, figures for 2004-05 are revised figures and figures for 2005-06 are proposed. 2 As per the petitioner (Tariff Order 2003-04),

1

T E R I Report No. 2006RP23

477 Analysis and compilation of tariff orders

FY 2001-02 Opening Balance (Rs Crore) Dues during the year (Rs Crore) Total Dues (Rs Crore) Collection during the year (Rs Crore) Collection as % of total dues Collection as % of the dues accrued during the year S O U R C E Tariff order of UPCL FY 2005-06 629.25 257.48 886.73 204.67 23.08 79.49% FY 2002-03 682.06 710.94 1393.00 541.37 38.86 76.15 FY 2003-04 824.78 846.81 1671.59 565.02 33.80 66.72 FY 2004-05 (upto 31 Oct 04) 1009.65 454.67 1464.32 320.26 21.87 70.44

)

CE CE G ) CE *J 6 J & &J * = * *J 6 T - 9 = CE *J 6 3 CE *T CE J & G ) CE J & T

AT&C Loss

,J *J 61 * +6T CE CE

Table 9.20 AT&C losses

AT&C losses FY 2002-03 FY 2003-04 FY 2004-05 S O U R C E As per PFC estimates 40.74 43.38 42.85

"N N

N

N

%

N N G 5 )_

_ _ $

Metering

_ @

( ,, 0F **,

,, 0F =

4 = 4 4 *T +T CE 9+9 = 6J = H

( $

=

- ,

,

Table 10.21 Status of metering (FY 2005-06)

FY 2005-06 Particulars Numbers Metered %age 11 kV Feeders 1008 1008 100% Distribution transformer 24412 989 4% Consumer metering (in lakhs) 9.87 7.73 78% S O U R C E Website of Ministry of Power, www.powermin.nic.in

1

It has to be noted that the figure for FY 2004-05 is only for 7 months

T E R I Report No. 2006RP23

478 Analysis and compilation of tariff orders

- 9

= @ )

Table 9.22 Status of Consumer Metering as on 31st December 2005

Metered Unmetered Domestic Commercial Public lamps Dept employees Public institutes/govt bodies State tubewells Private tubewells S O U R C E Data provided by UERC 839,273 101,087 220 124 2,377 689 5,940 32,830 0 0 7,961 0 0 11,858 Totals 872,103 101,087 220 8,085 2,377 689 17,798 % of metering 96.24% 100.00% 100.00% 1.53% 100.00% 100.00% 33.37%

4 6,,+* C 9 = = @ ) @$ )5 ) = = = [email protected] 4 4 6T

% metered consumers

120% 80% 60% 40% 20% 0%

100%

D om es tic

ci a

oy ee

ie s

ps

ls

C om m er

m pl

tu be

vt b

Pu b

st it/ go

te

te

Figure 9.7 Consumer metering

Power purchase

S O U R C E Data provided by UERC

- 9 & 6J

I CE

Pu

bl

&J *4 CE

ic

*J 6

T E R I Report No. 2006RP23

Pr iv at

D ep

in

St a

CE

e

tu b

lic

ew el

la m

od

w el

ls

s

l

479 Analysis and compilation of tariff orders

Table 9.23 Power Purchase Cost : (Proposed/Approved)

FY 2003-04 Quantity of power purchase (MU) 3989.1 3900 Total cost of power purchase Rs crore) 389.8 370.68 585.52 FY 2004-05 Quantity of power purchase (MU) 4667 NA Total cost of power purchase Rs Crore 544.5 503.38 FY 2005-06 Quantity of power purchase (MU) 5069 4810.17 Total cost of power purchase Rs Crore 615.13 535.75

Rs Crore Proposed Approved

Actuals 4843 625.7 S O U R C E Tariff order for UPCL for FY 2003-04 and FY 2005-06, audited accounts for FY 2003-04 and tariff proposal for UPCL and PTCUL of FY 2006-07.

- 9 *

=

I

Table 9.24 Quantum of power purchase from firm sources (FY 2003-04 to FY 2005-06)

FY 2003-04 (Approved) UJVNL main station (MU) Total CGS (MU) Total dispatch from firm sources (MU) 2957 872 3901 FY2004-05 (Petition) 2573 1825 4425 FY 2005-06 (Approved) 2934 1809 4810

S O U R C E Tariff order for UPCL FY 2003-04 and FY 2005-06

@ J *4 = = ) < J$ ) ( D $ )4 2$ )

@> 5 ; F <4 @ ! ; . ; $ )< CE &J - @$ )5

Table 9.25 Status availability: proposed and approved (MU)

Proposed Availability from UJNVL Availability from CGS Others Total 2963 2039 71 5073 Approved 3070 2155.79 72.07 5297.88

S O U R C E Tariff order for UPCL FY 2003-04

/ = =

) - 9

1 includes 2 actuals

transmission charge paid to PTCUL as per the audited accounts of UPCL for 2003-04

T E R I Report No. 2006RP23

480 Analysis and compilation of tariff orders

Table 9.26 Availability based on merit order for FY 2003-04

Total UJNVL CGS Others Total 3070 2156 72 5298 Required for sale within state 2983 918 0 3900 Available surplus 87 1238 72 1398

S O U R C E Tariff order for UPCL FY 2003-04

4 )

@> 5 F ) I Q J R 3 = J = @ ) @$ )5 = 5 4 @> F 5 = Q R $ $

=

CE

&J * = I = CE

- 9 6J

Table 9.27 Availability: proposed and approved (MU) in FY 2005-06

Proposed Availability from UJNVL Availability from CGS Others Under Banking Total 2603.69 2178.59 29.21 220.12 5031.61 Approved 2970.88 2178.59 29.21 10.48 5189.16 5033 Actual 3370 1633

S O U R C E Tariff order for UPCL FY 2005-06

)

= -

-

=

-

D=

=

Per unit cost of power from UJVNL

@> 5 F %

CE 66 0 =

&J *4 @$ )5 N 6 C = @$ )5 = . = @> 5 F ) D= 4

66 -

@> 5 F N

) 2 )

- I

= 4

T E R I Report No. 2006RP23

481 Analysis and compilation of tariff orders 3 $ $ ,+ ! D= @$> F - 4 <4 @> F 5 @ 6 3 = 0 4 L ) = ; = = 3 = @> 5 F 8 && < CE )D . 3 - ) 0 ) @ - 9 + ) = @> 5 F @ ! = @$ )5 @ ! ; &+ 9 D= && < ;& 8 , 6J [email protected] ) L ) @> 54 F @> F 5 = < ) , + 4 = @$ )5 ) @$ 0 & ,J $ $

3 @$ )5 ; $

) ; 4

4 )

4

<

)

Table 9.28 Cost of power purchase (Rs Crore)

FY 2003-04 Cost of Power Purchase Small hydro UJVNL main station NHPC NTPC NPC Total CGS IPPs Transmission charges 14.15 117.88 239 34.95 82.93 205.9 34.53 245.93 20.51 300.97 6.71 24.84 19.29 (Approved) FY 200405**(Proposed) FY 200506(Approved)* 13.4 234.71 35.37 220.55 12.43 268.35

Total power purchase cost 370.68 544.45* 535.75 *The total contains an additional 6 MU (1.72 MU of Tanakpur free power and 4.31 MU of UI charges which has not been shown in the table) ** Figures for FY 2004-05 are those proposed by UPCL for 2004-05 (given in tariff order FY 2005-06) while those for FY 2003-04 and FY 2005-06 are approved figures S O U R C E Tariff order for UPCL FY 2003-04 & FY 2005-06

- 9 9

=

T E R I Report No. 2006RP23

482 Analysis and compilation of tariff orders

Table 9.29 Per unit cost of power (Rs/kWh)

Source UJVNL main station CGS Total power purchase cost FY 2003-04 FY 2004-05 FY 2005-06 0.80 1.43 0.95 0.80 1.65 1.16 0.80 1.48 1.07

S O U R C E UPCL tariff order FY 2003-04 and FY 2005-06

96 CE &J * , CE 6J

@> F 5

+

1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2003-04 UJVNL CGS 2004-05 2005-06 aggregate from all sources

Figure 9.8 Per unit cost of power from FY 2003-04 to FY 2005-06

S O U R C E TERI estimates based on total power purchase cost and power purchase quantum given in UPCL tariff order FY 2003-04 and FY 2005-06

- 9&

Rs/unit

C

99

=

T

Table 9.30 Cost of power purchase as % of ARR

Total ARR Total power purchase cost (Rs Crore) FY 2003-04 FY 2004-05 FY 2005-06 370.68 503.38 535.75 (Approved) (Rs Crore) 702.92 643.61 756.61 Power purchase as % of total cost (%) 52.73 78.21 70.81

(based on approved figures) S O U R C E Tariff order for UPCL FY 2003-04 & FY 2005-06

T E R I Report No. 2006RP23

483 Analysis and compilation of tariff orders

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

78.21% 70.81% 52.73%

2003-04

2004-05

2005-06

Figure 9.9 Power purchase as % of ARR

S O U R C E TERI estimates based on ARR figures from tariff order for UPCL FY 2003-04 & FY 2005-06

-

C

9 94

I -

+

(@ 4

CE , *&

&J * CE

)D . ,+ 9 (@ &J * + &6

6J ,, ++

6J D ). , *+ CE )D . CE 6J

CE

Fuel surcharge

) % = % - = J @$ )5

-

Unscheduled interchange charges1

- 9 &, = CE @ &J *4 CE I *J 6 CE @ 6J

1 based

on the information provided by UERC

T E R I Report No. 2006RP23

484 Analysis and compilation of tariff orders

Table 9.31 Unscheduled interchange charges

UI Charges Units injected (LU) Units drawn (LU) Amount received (Rs Crore) Amount to be paid (Rs Crore) Net amount to be received (Rs Crore) Average recovery rate for energy injected (Rs/kwh) Average rate for energy drawn (Rs/Kwh) 1.16 1.72 2.38 3.8 2.76 2.59 FY 2003-04 FY 2004-05 FY 2005-06 4825.1 190.34 55.92 3.27 52.65 3938.43 353.9 93.62 13.45 80.17 2884.1 349.86 79.59 9.05 70.55

S O U R C E Data provided by the UERC

Operating expenses Employee cost

- 9& CE = &J * CE 4 6J

(Rs Crore)

Proposed 164.49 117.72 Approved 108.22 106.12 Actual 93.1 NA

=

Table 9.32 Employee Cost

Employee cost * FY 2003-04 FY 2004-05

FY 2005-06** 106.26 93.74 102.41 * net of capitalized expense ** for both UPCL and PTCUL S O U R C E : Tariff order for FY 2003-04 and FY 2005-06, audited accounts for FY 2003-04 and tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

CE ) 4

&J *4

) - @$ )5 @$ )5 - 6 % 3 -

@$ )5

=

) @$ )5 CE 6J ( $ )@5 4 @$ )5 = -

= /

CE ;( /<

*J 6 -

!

) -

-

-

Employee productivity

- 9 && = &J * CE = 6J CE

T E R I Report No. 2006RP23

485 Analysis and compilation of tariff orders

Table 9.33 Employee productivity

Parameter Employee cost per unit of sales (Rs/kwh) Employee cost as % of ARR Based on costs approved by Commission S O U R C E TERI estimates FY 2003-04 0.51 15.40% FY 2004-05 0.38 16.49% FY 2005-06 0.37 15.19%

6, CE &J * & = *J 6 = CE = 6J C CE 6J 2 9, = CE =

0.60 0.50 0.40 0.30 0.20 0.10 0.00

0.51 0.38 0.37 15.40% 16.49% 15.19% 2004-05 2005-06

2003-04

Employee cost per unit of sales (Rs/kw h) Employee cost as % of ARR

Figure 9.10 Trend in Employee productivity S O U R C E TERI estimates

Repair and Maintenance expenses (R&M expenses)

- 9 &* = 6 GCE 6J G 3 ( CE &J *4 CE *J

Table 9.34 R&M expenses (Rs Crore)

R&M expenses FY 2003-04 FY 2004-05** Proposed Approved Actuals 37.72 34.33 17.18 30.53 29.67 NA

FY 2005-06** 35.63 35.63 51.03 ** Aggregate R&M for UPCL and PTCUL S O U R C E Tariff order for FY 2003-04 and FY 2005-06, audited accounts for FY

2003-04 and tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

CE 3 , 6T 6T

&J *4 -

) D C D C D C ) = D C G ( , 6+ ,+ ) =

=

G ( 0 0 G ( &

4 = ,,* , )

T E R I Report No. 2006RP23

,4 0

486 Analysis and compilation of tariff orders 6 *) C CE @$ )5 ; < *J 64 @$ )5 &* && ) $ )@5< ) CE 6J 4 ) G ( &6 & ) G 3 ( ; = 3 ,6J T G 3 ( ; & 6& = ) C < 9 ,, 6, ) +)

= ; < =

40 35 30 25 20 15 10 5 0 2003-04 2004-05 2005-06

C 9 ,, ;/< = G ( D ; C = < CE &J *4 CE

Rs Crore

Figure 9.11 (A) Trend in R&M expenses (based on approved figures)

S O U R C E Tariff order for UPCL FY 2003-04 & FY 2005-06

= *J 6 CE 6J

40 35 30 25 20 15 10 5 0

5.18% 3.07% 17.18

35.63 4.68%

6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

Rs Crore

30.53

FY 2003-04 R&M expenses

FY 2004-05

FY 2005-06

R&M expenses as% of GFA

Interest costs

C

Figure 9.11 (B) R&M expenses (based on approved figures) as percentage of GFA S O U R C E Tariff order for UPCL FY 2003-04 & FY 2005-06

CE &J *4 @$ )5 - 9 &6

-

=

T E R I Report No. 2006RP23

487 Analysis and compilation of tariff orders

Table 9.35 Interest Cost

Component Interest on liabilities arising out of transfer scheme Interest on fresh loans from FI Interest on loan from past CPSU liabilities Interest due on loans from govt of Uttaranchal Total 50.37 13.07 49.94 19.29 132.67 Proposed

S O U R C E Tariff order for Uttaranchal FY 2003-04 & FY2005-06

CE

&J * -

4 )

) CE B 0 &J *4 3 )$ @ . / @ - @$ )5 @$ )5 @$ )5 4 )

C

4-

@$ )5

D= =

= CE &J * CP L @ ) . @ L - @ ) 66) $ $ !

D [email protected] H D= -

$ E (D CE = % &J *4 . = % 0

2 ) D= = -

= 0 = ,6 0 *) = ,6 ) , - @$ )54 ) CE & ) &J *

- 9&

CE

&J *

Table 9.36 Interest cost: FY 2003-04 (Rs Crore)

FY 2003-04 Interest costs Proposed 132.67 Approved in tariff order 2003-04 9.01 Approved in Supplementary order FY 2003-04 22.74 162.5 Actual

S O U R C E Tariff order for Uttaranchal FY 2003-04 & FY2005-06, Supplementary order for 2003-04 and audited accounts for FY 2003-04.

)

CE ,,6 , )

*J 6

= - @$ )5

&

T E R I Report No. 2006RP23

488 Analysis and compilation of tariff orders L - 9& =

Table 9.37 Interest charges for FY 2004-05 (Rs Crore)

Proposed 115.71 Approved 26.73 Actual NA

S O U R C E Tariff order UPCL for FY 2005-06

C

CE

6J [email protected]

4

) + &+ ,, +6 ) &, 9 ) 4 ) = DC $ . 4 , , ) -

) ) @$ )5 0 = - @$D = *+ ) = 0

@ ,

) )

)$ @ . = - D @ H= CE 6J 4 3 *+ + ) - @$ )5 = - 9 &+

Table 9.38 Interest expenditure in FY 2005-06$

Loan (Rs Crore) Government of Uttaranchal loan Transfer Scheme loans FY 2005-06 Proposed 31.68 101.84 FY 2005-06 Approved 28.38 Nil FY 2005-06 Actual -

Total* 127.22 48.48 60.56 *Interest net of capitalization S O U R C E Tariff order for Uttaranchal FY 2005-06 and ARR& Tariff proposal of UPCL and PTCUL for FY 2006-07 (for actuals)

Administrative & General expenses (A&G expenses)

C CE J & &J *4 @$ )5 ) , T - = = 6J 4 @$ )5 ;CE *J 6< < = = CE &T = , 6) ,& ,, ) CE , T 0 = *T ; 4 =

CE )

*J 64 @$ )5

) G 3 D - 9 &9

1 These include interest expenditure of both UPCL and PTCUL since at that time apportionment of loans between UPCL and PTCUL had still not been done.

T E R I Report No. 2006RP23

489 Analysis and compilation of tariff orders

Table 9.39 Administrative and General Expenses (Rs Crore)

A & G Expenses FY 2003-04 FY 2004-05 FY 2005-06* Proposed 16.08 17.75 18.3 Approved 10.84 13.11 13.15 20.8 Actuals 59.8

**Aggregate for UPCL and PTCUL S O U R C E Tariff order for UPCL for FY 2003-04 & FY 2005-06, audited accounts for of UPCL for FY 2003-04 and ARR and Tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

- 9*

=

G D

G 3 D

Table 9.40 Efficiency improvement in A&G

Particulars A&G per unit of sales (Rs/unit) A&G as % of ARR Based on approved figures S O U R C E TERI estimates FY 2003-04 Approved 0.05 1.61% FY 2004-05 Approved 0.05 2.04% FY 2005-06 Approved 0.04 1.74%

0.06 0.05 0.04 Rs unit 0.03 0.02 0.01 0.00

0.05

0.05 0.04

1.87%

2.04% 1.74%

2003-04

2004-05

2005-06 A&G as % of ARR

A&G per unit of sales

Figure 9.12 A&G expenses (approved) per unit of sales and as % of ARR

S O U R C E TERI estimates

0 3 = 69 + ) = &J *< 4 4

=

4 G 3 D G 3 D CE &J *4 -

G D = G D

3 CE =

; G 3 D

CE

6J

T E R I Report No. 2006RP23

490 Analysis and compilation of tariff orders

Depreciation

CE = D C D C = +, = @ < = ) D C ,J 3 ) * ++ ) CE ,J D= = = CE &J * ;< @ ) = + T &J *4 @$ )5 CE + T , &&) = 3 &J * - 0 ) +& CE &J * @$ )5 )

@$ )5 $

@$ )5 @$ )5P ;@$ 6 &* ) @$ )5P &9 9& )

.- I + 0

4 9 *, T CE @$ )5 &J * -

) D C &J * = - 9 *, =

,

6 3

CE

Table 9.41 Depreciation (FY2003-04)

Proposed GFA (Rs Crore) Deprecation as % of GFA 1063.3 7.87 %

Approved in tariff order 507.34 7.87%

Approved in Supplementary order 1065 7.87 5

Actuals 1162.88 7.88

& audited accounts of UPCL for FY 2003-04.

Deprecation (Rs Crore) 83.7 39.93 90.41 91.64 S O U R C E Tariff order FY 2003-04, supplementary order for UPCL for FY 2003-04

A &, , ) = , &6 ) - 9* 4 = )

@$ )5

$ )@5 =

Table 9.42 Depreciation for FY 2004-05 (Rs Crore)

FY 2004-05 UPCL PTCUL Total S O U R C E Tariff order FY 2005-06 Proposed 82.8 17.55 100.35 Approved 23.72 7.44 31.16

C

CE 6J $ )@5

4 @$ )5 * *) = 3 ;. ;. <

9+ ) @$ )5 , < 4 ,9*+ 4 ,9*+ 9 *) - -

( $ ,99* ) =

T E R I Report No. 2006RP23

491 Analysis and compilation of tariff orders 3 - ) ) ) @$ )5 ) ) * ) @$ )5 = . + - 9 *& &, ) 4 $ )@5 ( $ )

CE 6J * *) = $ )@5 CE 6J

=

Table 9.43 Depreciation for FY 2005-06 (Rs Crore)

Proposed UPCL PTCUL Total 98.77 24.74 123.51 Approved 31.6 8.66 40.26 Actual 61.7 7.99 69.72

S O U R C E Tariff order FY 2005-06& ARR and tariff proposal of UPCL and PTCUL

Sources of funds

for FY 2006-07 (for actuals)

Sources of finance for proposed capital expenditure

- 9 ** CE = J & CE &J * %

Table 9.44 Details of funds for UPCL (Rs Crore)

FY 2002-03 Details of scheme District plan State plan Budget provision 25.7 25.7 Release Grant Loan 1.5 1.5 Budget provision 40 0 0.81 0.58 1.86 3.6 0.45 FY 2003-04 Release Grant Loan

PTW energisation PMGY (RE)

3.25 2

3.25 13.75 2.93 0.9 20 13 37 1 0.85 8.11 27.88 114.67

3.25

MNP (RE)

75 13.5 3.15 73.02

35 4.5 233 40 25 376.25 67.5 3

APDRP NABARD REC Total

81.33 25 237.98

106.67

74.35

7.95

S O U R C E Supplementary order for UPCL for FY 2003-04

Utilization of funds under APDRP

@ $ $ ! 0 L = G ! + T - 9 *6

Table 9.45 Utilization of funds under APDRP

1

. &<

D=

; =

!

T E R I Report No. 2006RP23

492 Analysis and compilation of tariff orders

APDRP Fund utilization (Rs Crore) FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 Cumulative upto March 2005 Funds received 99.63 75 66.13 42.9 283.66 Expenditure 7.09 23.83 73.41 144.1 248.44

S O U R C E http://www.powermin.nic.in/APDRP status report

$ $ ! - 9*

Table 9.46 Progress under APDRP

Rs /Crore Rudrapur circle Dehradun circle (U) Roorkee circle Srinagar EDC Raniket Dehradun Circle (R ) Total Project cost 101.03 32.13 76.65 54.88 18.24 28.15 310.08 279.76 Fund release

=

% of work completion 0.68 0.68 0.63 0.83 0.87 0.94 0.73

Total utilization upto June 2006 65.86 21.96 47.87 45.13 13.25 26.4 220.47

S O U R C E http://www.powermin.nic.in/APDRP status report

= - 4 -

=

0 -

-

Power development fund

= ) = 4 = N = . D= = 4

) - =

*& = @> 5 F &

Provision for bad and doubtful debt

& 2 @ ) = [email protected] ) & 9 ) *

T E R I Report No. 2006RP23

CE = ) @$ )5

&J *4 3 = 0 = 4 -

-

-

@$ )5 0 @$ )5 CE

-

@$ )5

&J

493 Analysis and compilation of tariff orders CE 3 ) @ ) CE 6J 4 +) @$ )5 6 9) = = +) J = +) 4 4 = CE @ ) 4 &J * - 9* = ( &,4 & H * = & , *J 6 CE ,& & ) CE *J 6 6J = 6, 4 @$ )5

&,

, & ) * +) ) = -

3 L 6 9) *9T 4 I = CE 6J -

)

Table 9.47 Provision for bad and doubtful debt

FY 2003-04 Proposed Approved Actual 32.76 Nil 37.96 FY 2004-05 13.36 Nil NA FY 2005-06 20.51 Nil 18.6

S O U R C E Tariff order for FY 2003-04 and FY 2005-06, audited accounts for FY

2003-04 and tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

Rate of return

C ) CE / ++ CE , *, ) 6T 0 ) &J *4 @$ )5 ) &J * @ , ) &) ) / , T4 @ )4

=

C 4 D= , &6 ) 4 ) ;J< ,,* 9 ) 6T = =

@ ) CE &J *

=

-

@

)4 = 0

@$ )5 @$ )54 = 4 D= & +)

- 9 *+

T E R I Report No. 2006RP23

494 Analysis and compilation of tariff orders

Table 9.48 Return on capital base for FY 2003-04

Rs Crore Proposed Approved Approved (Supplementary order) Nil 3.78

On capital base 0.5% of borrowings from organizations or institutions approved by state government Reasonable return

10.84 5.79

1.41 1.36

16.63

2.77

3.78

S O U R C E Tariff order for Uttaranchal FY 2003-04, FY 2005-06 and supplementary order 2005-06.

C )

CE

6J 4 @$ )5 ,9) =

N =

9) $ )@5 C @$ )5 $ )@54 = = 3 = 4 4 @$ )5 $ )@5 CE 6J = - 9 *9

Table 9.49 Rate of Return for FY 2005-06 (Rs Crore)

Licensee UPCL PTCUL Total Proposed 6.29 1.9 8.19 Approved Nil Nil Nil Actual 0.71 Nil 0.7

S O U R C E Tariff order for FY 2003-04 and FY 2005-06, audited accounts for FY

2003-04 and tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

Annual Revenue Requirement (ARR)

= 9 ,&

Table 9.50 Trend in Annual Revenue Requirement (Rs Crore)

FY 2003-04 ARR (Proposed) ARR (Approved) 794.05 702.92 FY 2004-05 FY 2005-06** 890.37 643.61 1032.18 756.61

=

- 96

C

ARR (Actual) 1016.12 NA 988.77 ** Aggregate of UPCL and PTCUL S O U R C E Tariff order for FY 2003-04 and FY 2005-06, audited accounts for FY 2003-04 and tariff proposal for UPCL and PTCUL for FY 2006-07

1

I

T E R I Report No. 2006RP23

495 Analysis and compilation of tariff orders

1200 1000

9* 6

+9 &

, & ,+ 6 ,

Rs Crore

800 600 400 200 0 2003-04 2004-05

9

*& ,

2005-06

ARR Proposed

ARR Approved

Figure 9.13 ARR (proposed and approved)

S O U R C E Tariff order for UPCL for FY 2003-04 & FY 2005-06

! = CE 6J = 3 CE = &J * = I = 2 ) -

& +,, 9+ ) 3 -

2 0 =

=

CE

0 *J 6

=

4 - 9 6,

=

Table 9.51 ARR break-up or FY 2003-04 (Rs Crore)

FY 2003-04 Proposed Approved 389.8 370.68 164.49 108.22 16.08 10.84 37.42 17.18 133.34 9.01 32.76 0 83.7 39.93 6.24 15.4 48.17 16.63 2.77 841.45 564.88 188.77 841.45 753.65 49.7 50.73 793.75 702.92

Details Power Purchase Expenses Employee cost A&G expenses R&M expenses Interest Charges Provision for bad & doubtful debt Depreciation Interest on working capital rebate allowed to consumers Less expense capitalised Reasonable returns Total Expenses Provision for contingency reserve Total expenses after provision Less non tariff income Net Aggregate Revenue Requirement

Actual 585.5 93.1 59.8 29.6 162.52 37.9 91.6 NA 1060.2 1060.2 44.1 1016.1

S O U R C E Tariff order for FY 2003-04 and audited accounts of UPCL for FY 2003-04

T E R I Report No. 2006RP23

496 Analysis and compilation of tariff orders - 96 ; = = <1 CE *J 6 CE 6J

Table 9.52 Detailed ARR for FY 2004-05 & FY 2005-06

FY 2004-05 FY 2005-06

Particulars Power Purchase Expenses Transmission Charges Employee cost A&G expenses R&M expenses Interest Charges Depreciation Interest on working capital rebate allowed to consumers Gross expenditure Less: expense capitalization Reasonable return Provision for bad & doubtful debt Net Expenditure Provision for transitional contingency reserve Less: Non -Tariff income

Total claimed by PTCUL & UPCL 541.4 35 117.72 17.75 34.33 120.61 100.35

Corrected by Commission for PTCUL & Total Projected Total Approved UPCL (PTCUL & UPCL (PTCUL & UPCL combined combined) combined) 503.38 23.99 106.12 13.11 30.53 31.6 31.16 0 0 615.13 45.69 130.3 19.52 35.63 133.51 123.51 0 0 1103.29 32.2 8.19 20.51 1099.79 0 535.75 30.77 114.95 13.15 35.63 54.77 40.27 11.92 0 837.21 28.89 0 0 808.32 0 51.71

Actuals2 (PTCUL & UPCL) 625.7 56.06 125.27 22.8 51.03 76.69 69.72 9.18

967.16 27.86 8.25 13.4 960.95

739.89 25.73 0 0 714.16

1036.47 41 0.7 18.57 1014.75

70.48

70.55

67.61

15.98 998.77

Net Aggregate Revenue requirement (15)-(16) 890.47 643.61 1032.18 756.61 S O U R C E Tariff order of UPCL for FY 2005-06 and tariff proposal for UPCL and PTCUL for FY 2006-07 (for actuals)

Tariff rate balancing Approach to tariff determination

1 Difference between the employee cost and interest charge between this table and the analysis of the components down earlier is on account of expenses capitalised. The employee cost and the interest cost discussed earlier in details is total employee cost minus the expenses capitalised. In this table the expenses capitalised have been clubbed together 2 The actuals for FY 2006-07 are based on UPCL revised estimates based mostly on actuals for six months (April ­September 2005) and projections for the remaining six months. These actuals (revised estimates have been taken from UPCL and PTCUL petition for FY 2006-07).

T E R I Report No. 2006RP23

497 Analysis and compilation of tariff orders ) CE = ( = . ) L L = = &J * 4 P &J *

3

$ = )

CE ) 0 =

# # =

( ( -

3 C - 1 . " &J *4 @ )

#

,

CE

3

) 4 4 3 = J CE &J *4 C I

=

C3 = CE D= & CE 6J ) &J * 4 = )

0 =

1 Tariff

order 2003-04

2 According to the UERC, fixed charges encouraged under-reporting of load (sanctioned load reported lower than the actual load). The commission quoted the petitioner's statement that of 676293 domestic consumers, as many as 527038 claimed a sanctioned load of 1 kW only. This under-reporting leads to a mismatch between distribution network capacity and actual demand and results in frequent breakdowns in the system.

T E R I Report No. 2006RP23

498 Analysis and compilation of tariff orders ; < /$ 54

Category wise average tariff

- 9 6& = T = CE = ; = &J * = CE = *J 6 = < =

Table 9.53 Average realisation for each consumer category

FY 2003-04 Average revenue (AR) 2.03 3.45 1.95 0.98 3.05 2.35 2.85 0.63 2.23 2.41 Average cost (AC) AR/AC 3.29 61.83% 3.29 104.83% 3.29 59.36% 3.29 29.81% 3.29 92.81% 3.29 71.62% 3.29 86.77% 3.29 19.18% 3.29 67.90% 3.29 73.16% Average revenue (AR) 1.93 3.21 3.39 1.52 2.48 2.25 3.03 4.09 2.58

FY 2005-06 Average cost (AC) 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45

Domestic Commercial Public Lamps Private Tube Wells Government Irrigation System* Public Water Works Industries* Temporary Supply Bulk Average tariff

AR/AC 78.78% 131.02% 138.37% 62.04% 101.22% 91.84% 123.67% 0.00% 166.94% 105.31%

* includes state tube well & public canals, * *includes both HT and LT industry S O U R C E TERI estimates

&4 D= =

= T4

= = , 6T J + T CE 6J = 4 & T9&T )

= ,&,T

, *T = 9T 4 T = , ,T = ! = D=

T E R I Report No. 2006RP23

499 Analysis and compilation of tariff orders

Convergence index (CI)

C 9 ,* 6T

0.29 0.28 0.28 0.27 0.27 0.26 0.26 0.25 0.25

CE

= &J *

CE

) 6J

0.28

)

-

0.27

0.26

Existing 2003-04

Figure 9.14 Trend in Convergence Index

S O U R C E TERI estimates

Approved tariff 2003-04 Approved Tariff 200406

Tariff rationalisation and new initiatives in tariff design

, H! # % " #! # ) CE &J * H! 0 0 2 4 6T = 0 = 6T = J 0 6J ! 3 -J N N R - = * 0A &J J - = 6 0A4 - = 6 0A # # J -J & # # 6 = , 0A #" # 6 = ; < 0 ) < 3 = /$ 5 N ;

$

0 J

CE Q 2

4 5

(

! , 0A

, 0A & 1#

*

* -

1 Concession

available only to villages notified as snowbound/snow line villages by the concerned District Magistrate

T E R I Report No. 2006RP23

500 Analysis and compilation of tariff orders

Transitional contingency reserve

@$ )5 = I 4 = = I - I &J * ) CE = = &J *4 @ @ <) = = @$ )5 = = ; L = = 3 = 3 - 2 ; = J L @$ )5 $ @$ )5 @$ )5 = = ) L ) ; -% = 4 ) 0 < ) CE ) - 0 + ) = CE &J * ,++ = ) 0< ) 4 CE = &J * -

=

@$

Treatment of revenue gap and subsidy

- 9 6* = CE 6J = N CE &J *

Table 9.54 Revenue gap/ (surplus) at existing tariffs (Rs Crore)

FY 2003-04* Estimated by UERC Proposed FY 2005-06** Estimated by UERC Proposed

Description

Actuals

Net revenue requirement 793.75 702.92 1016.12 972.24 725 Income from sales of electricity at existing tariff 655.19 758 966.6 820.37 830 Revenue gap/(surplus) 138.56 (55.08) 49.4 151.87 (104.25) *the approved ARR for FY 2003-04 is as per the original tariff order of FY 2003-04. 1 **figures in FY 2005-06 are of only UPCL (excluding PTCUL) S O U R C E Tariff order for UPCL for FY 2003-04 and FY 2005-06, audited accounts for FY 2003-04

1

The revised figure given in the supplementary order were not considered while analyzing the revenue gap as the additional costs approved in the supplementary order did not have any effect on the tariffs for 2003-04.

T E R I Report No. 2006RP23

501 Analysis and compilation of tariff orders CE &J *4 66 + ) = 3 ) 3 ,&6 ) 3 CE CE 6J , * 6) CE J 4 ) 3 &J *< ; ) 66 + ) + & @$ )5 &J * = ; ) =

@ L

)

CE 6J + ) 9* &+ )

Treatment of the surplus of FY 2005-06

H @$ )5 = ) 9* &+ ) 6) = I @$ )5 +9 &+ ) ,6 ) = @$ )5 $ )@5 @$ . / $ = = @$ = @$ @$ )5 )5 ) 0 = - 9 66 = @$ )5 ) = 6 @$ )5 @ ) 4 ) - 0 = = , ,) CE 6J DC $ P 4 0

DC $

)

= @

Table 9.55 Surplus of UPCL (as per investigation) Rs crore

FY 2001-02 FY 2002-03 FY 2003-04 *FY 2004-05 Total Surplus determined in the investigation Deficit/surplus shown in tariff petition of UPCL -18.7 -65.98 -168 -139 -181.85 -391.68 -242.86 Profit/loss as reflected in UPCL accounts -23.97 12.41 -49.45 S O U R C E "Report on Special audit" conducted by independent Chartered Accountant appointed by UERC (available on UERC website) 69.21 329.16 249.68 107.48 755.53

3 @$ )5 =

-

=

-

T E R I Report No. 2006RP23

502 Analysis and compilation of tariff orders &, ( 9 - = *J 6 & ,) 3 @$ )5 = Table 9.56 Application of surplus

Application of surplus Excess paid to UJVNL Increase in cash and bank balances from 09.11.01 to 31.03.05 Increase in unrealised dues from 09.11.01 to 31.03.05 Total 275.35 379.57 Rs Crore 100.61

&,+

) = CE ,* & )

4 = &J * CE %

- 96 L - @$ )5

755.53 S O U R C E "Report on Special audit" conducted by independent CA appoint UERC available on UERC website.

) , & ( = & , ,) 4 N

4

= 66 6& ) @> 5 F 9 = = & ) &

-

3 66 N

,

N &,

Governance Timeliness of tariff orders

# # @ )4 ,6 0 0 & @ ) CE 4 . @$ )54 . = 4 = 4 - @$ )5 &J * @ 3 ;$? & ? ? ) , 6 @$ )5 & ! ,* ( J 4 @$ )5 & ) - & ( * > & + . 6 ) /

) @$ )5 CE &J * . & ! 4 4

-

T E R I Report No. 2006RP23

503 Analysis and compilation of tariff orders # # . @ / @ ) I ) ;$? , ? ? 4 * <4 ! = & CE 6J 0 = - 0 @$ )5 ) 0 @$ 0 )5 0 C ) @$ )5 6 @ ) [email protected] ) L CE J ,6 > J 6 *J 6 &, ! - 4 CE 6J *4 ) ! = *J 6 ) CE & ) 6 ; < ;) 6

CE 4-

*J 6 4

6J

CE - 96 =

Table 9.57 Timeliness of issue of Tariff order

Year Due date for ARR Final acceptance of Date of issue Time taken from acceptance petition by commission of tariff order to issuance of final order by the Commission (in days) 4th June 2003 15th Jan. 2005 8thSept. 2003 25th April 2005 94 100

FY 2003-04 FY 2004-05 and FY 2005-06

30th Dec. 2002 30th Nov. 2004

S O U R C E Tariff order of UPCL for FY 2003-04 & FY 2005-06

Public participation

CE ,&6 -% 4 & C > CE J = 0 = 6 ,6 > 64 H = *J 6 CE 6J 4 4( &J *4 4 ) J0 J @$ )5P = ! 4 > 3 4 J&,4

)

T E R I Report No. 2006RP23

504 Analysis and compilation of tariff orders ) 2 * & & C @ = 42 ( ) ;CE 6J < , 6 -% 4! 64 6 -

Promotion of renewable energy

@ = = . 2$ @ - = @ @ )P $ 5C , T = = = $ 5C = 4 *6T4 = 7

% = = =

@

)

4

= $ 5C C3 )

Consumer advocacy and redressal

D = , ) ( ) < () ; = ) ? ( ,6 = C = H = @ )

Anti-theft measure

. 3 ! & = D= ) = = ) - 9 6+ 4 = I @ = [email protected] H 4 ;D @< ,&

T E R I Report No. 2006RP23

505 Analysis and compilation of tariff orders

Table 9.59 Anti-theft cases and amount recovered

No of consumers scrutinised for Amount recovered Anti-theft cases FY 2005-06 (Dehradun & Haldwani) FY 2006-07 (half yearly from 1/4/2006 to 30/09/2006) (Dehradun & Haldwani) FY 2006-07 (half yearly from 1/4/2006 to 30/09/2006) (Kumaon region) 443 15.84 54 8.84 21 S O U R C E Information provided by UERC office, Hyderabad 1312 34.66 169 48.84 143 theft 2688 (Rs lakh) 191.2 Connections disconnected 1078 Amount pending for realization (Rs lakh) 240.2 Theft Cases registered by the police 146

T

, )

9 <

@$ )5P 9 6) , & ) ( = ( * ) ( 6 - 9 =

4 6 -

+)

, & ;

Table 9.60 Outstanding Dues (Rs Crore)

Outstanding dues September-2001 March-2002 March-2003 March-2004 March-2005 629.25 682.06 824.78 1009.67 1037

S O U R C E Tariff Order for UPCL for FY 2005-06

Open access

) * 4 -

Table 9.61 Schedule for allowing open access

Capacity sought to be allocated by the Date by which open Phase Phase-1 Phase-2 Phase-3 Open access consumer 5 MW and above 3 MW and above Above 1 MW access shall be allowed Dec. 31, 2005 Dec. 31, 2007 Dec. 31, 2008

S O U R C E UERC (Terms and conditions for Open access in distribution)

Regulation, 2004 issued in June 2004

) T E R I Report No. 2006RP23

=

- = Q -%

-

506 Analysis and compilation of tariff orders = R I = I , (A = @ ) . = 0 ) = )

$

=

I &, , +

Appeals against orders

* CE &J * 4 ) 4 = -4 = 0 ! & *4 @$ )5 3 - @$ )5 4 2 CE = &J *4 4 4 - . - @ )

= 0

- @$ )5 . & H &, ( 0 + . & = 0 - = = = L

) * . @ N $ 4 ;[email protected] < . C 4 4 = = P = *

3 . @ ( 4 J $ ;[email protected] < 4 ( = 4(

. @ @$ )5 . 4

4 0 3 = -

H ) P - = -

4

P =

-

1

as on 15th December 2006

T E R I Report No. 2006RP23

507 Analysis and compilation of tariff orders ( @ 4 ;[email protected] < ) 0 4 CE J ) = 4 4=

. -

Staffing

) ( ,. * = ) D= ) ) 6) 4 = = = I 6) 3 P 3 > ) . *9 ) &! 4 4 4

D=

Status of directives issued by UERC

CE = ) CE = 3 = = @$ )5 = J 3 = J ( 6J = 4 4 4 ) I = CE CE &J * 6J 3 ) 4 4 J = &J *4 ) @$ )5 .

% ( @$ )5 0 ) & @$ )5 = ) @$ )5 0 0 - &, ! -

D= ! &

-

- &,

T E R I Report No. 2006RP23

508 Analysis and compilation of tariff orders ) 2F J 0 ! @$ )5 0 && 0F $ 4) @$ )5 & + @ L = @ $ @$ )5 = & ) = @$ )5 = ) 4 4 - &, ( = @$ )5 * = 0 0 - &, ! 4 J , > * = =

4 D= -

&, ( - 0

-

0

0

( ' @$ )5 D ) @$ )5 @$ )5 ) @$ )5 . - &, ! 0 = ) D L @> 5 F = & $ $ -

$ $ $ 4 $ 4

0

T E R I Report No. 2006RP23

509 Analysis and compilation of tariff orders * ) 7 &- & ..& ..= - & = & & . & '' @$ )5 #' 0 !

0

/' @$ )5 0 @$ )5 0 - I @$ )5 3 = = 4 4 H @$ )5 ) ) ) @$ )5 . # # J ) " = = ) ( 0 & 0 @> 5 F = - &, , & @$ )5 = $ ) ) # * ! 6; # CE J <4 &J * 0 = = J -

$

0

=

Q ``` ``` = I

T E R I Report No. 2006RP23

= 4 I

-

) J = -

510 Analysis and compilation of tariff orders @$ )5 = = 4 & 0 = =

3 =

I = = ) =

-

= )

) @$ )5 -

$ ``` ` R `

) )

4 D=

!

0 / >

Monitoring mechanism2

) , & * 6 ) 5 K $ . - ( ) @ J 4 ) = H! = = ; <= 0 ; "

;-

< <

-

Regulations notified by UERC

- 9 ) =

1 2

Tariff order UPCL 2006-07 this is based on information provided by UERC

T E R I Report No. 2006RP23

511 Analysis and compilation of tariff orders

Table 9.62 Regulations notified by UERC

Regulations UERC (Terms & Condition for determination of Distribution Tariff) Regulation, 2004. UERC (Terms & Condition for determination of Hydro generation Tariff) Regulation, 2004 UERC (Terms & Condition for determination of Transmission Tariff) Regulation, 2004. UERC (Terms & Condition for Open Access in Distribution) Regulation, 2004. UERC (Conduct of Business) Regulation, 2004. UERC (Appointment & functioning of Ombudsman) Regulation, 2004. UERC (Guidelines for Establishment of Forum for Redressal of Grievances of the Consumers) Regulation, 2004. UERC (State Advisory Committee) Regulation, 2004. UERC(Fee & Fines) Regulation, 2002 UERC (Appointment of Consultant) Regulation, 2004. S O U R C E Website of UERC ­ www.uerc.in 13/03/2004 30/10/2004 4/1/03 17/04/2004 9/10/04 19/06/2004 30/10/2004 22/05/2004 22/05/2004 26/06/2004 Date

. $

)

Statement of accounts

@$ )5 CE CE 6J = &J * = @$ )5 CE H &J *4 CE *J 6

Power sector rating

( = =

Table 9.63 Rating of Uttaranchal

FY 2004-05 FY 2005-06 21 15 Rank Score 18.6 27.06 S O U R C E "State Power Sector- Performance Rating" prepared for Ministry of Power by CRISIL-ICRA

$ [email protected] - 9 &

>

@ 6 H

= ,6 G =

,

-

. )

;) .5J )

J> =

< 9 4

T E R I Report No. 2006RP23

512 Analysis and compilation of tariff orders J 4 4 @ B

A 0

;)

.5J ) =

J> -

<

4

J4 -

J = 6& -

4

2

Conclusions

@ 4 ) @$ )5 6T ) ) = &J * J ) = = $ $ 6 T CE 6J = 2 T &J * 3 = )D . T = &&T CE I 6J CE &J * = ) CE CE = 0 3 6J J = J -

96 @> F 5 + T E R I Report No. 2006RP23

,

513 Analysis and compilation of tariff orders , *& , *+ $ = < G 3 D 6 = = - I ) 6 @$ )5 CE ) 4 CE = % ; @$ )5 L ) @$ < CE ) &J * CE ,J ,J CE *J 6 @$ )5 CE ,J &9, + CE *J 6 &J * = CE ) @$ )5 J 3 *J = ,6T = * % J ;

= 66 6& )

= @ I 3 ) 3 L @$ )5 ) )

-

= 3 )

3

T E R I Report No. 2006RP23

514 Analysis and compilation of tariff orders

Annex 9.1 Details from the supplementary order for FY 2003-04 (issued in December 2003)

@ ) A A A *9 9* ) )D . = A = = - = . = = ,, 9, ) = 3 = 0 = = 6) 0 = 3 + ! &

Response of the State Government (on issues brought out in the supplementary order)

D= / = ) @$ )5 )$ @ . = = , @$ = 4 0 = P 0 @$ )5P $ & * * N 6

Box 9.6 Issues arising out of the transfer scheme

The gross fixed assets as on 09.11.01 as per the Provisional Balance sheet as on 31.03.02 was Rs 478.86 Crore, the same was projected as Rs 817.6 Crore in the ARR based on the draft transfer scheme and the value of the same agreed to in the transfer agreement was Rs 1058.18 Crore. The reason for this steep increase was not made clear to the commission. ( Was it due to additional asset being transferred to UPCL or was it on account of underestimation of GFA earlier on). S O U R C E Supplementary order for UPCL for FY 2003-04 issued in December 2003

@ D 4 6 0 = )$ @ .

4 = = @$ )5 P @$ )5 66 = . & ; N

"

@$ )5P = CE , < &J

=

T E R I Report No. 2006RP23

515 Analysis and compilation of tariff orders # ' ' $ = ( ' ! 2 ) 4 ) & +* ) = & +) = ) = 0 H I &4 $ $ D [email protected] # ! ( % % '

# = P = 4 -

! &J * =

,&

)

! 0

I = P ,* 9* ) +)

,&

)

# &J * % 0 &, ( !$ $ $ E (D 6) C 0 ) = - = ; ) )

! L % = = = 4 = 4 ) L % 0

CE

= <

= 0 = ,6 )

4 = % = % ) ) CE 0 = -

= , - @$ )54 ,6 ) 0 &J *4 @ ) *) 0

CE -

&J * &

T E R I Report No. 2006RP23

516 Analysis and compilation of tariff orders 66) , *)

Table 9.64 Impact of Government letter & affidavit

(Rs crore) Approved in tariff order FY Approved in Supplementary order 2003-04 (dated 08.09.03) Power Purchase Interest on loans Sub-total Trading income Total 370.68 5.5 376.18 13.77 362.41 FY 2003-04 (dated 08.12.03) 378.46 22.74 401.2 14.94 386.26 Impact 7.78 17.24 25.02 1.17 23.85

0

S O U R C E Supplementary order for UPCL for FY 2003-04 issued in December 2003

#

#

'

C ( H )

#

# +, 4 @$ )5 ) D C D C = - @$ )5 = , 6+ ,+

)

/

" ! @$ )5 L = &, ( 0 D ; C ++T &< 9 *, ) ; +& * ) , 6+ ,+ ) < 9 = ,) D C & 9) = CE &J * , ++T & ,+ ) I -

+ G 3 ( , 6+ ,+ ) 3 = - < ,,* , ) 6 *) CE &J * , 6T 0 & T ; = ; < 6, ) = D C , G ( & 0 +) = 6T 0 D C T D C

3

T E R I Report No. 2006RP23

517 Analysis and compilation of tariff orders * CE @$ )5 * @$ )5 = & +) = = 69 &J * ) ) ,,* 9 ) 6T 0 ++) ) ) 4 ) CE 4 &J (

= 4 @$ )5 = -

% " @$ )5 CE . 4 ) &T = T 96 ) ,, ) &J *

. ) ) - @$ )5< = = ; ,, **

% ) 6 9, ) ) 4 6 ) & 6, ) CE &J * - -

5 4 3 3 ) L * 9 ) ; * *+ , ) ) L <

- 9 6

= @$ )5 CE &J *

T E R I Report No. 2006RP23

518 Analysis and compilation of tariff orders

Table 9.65 Impact of transfer scheme

Impact of transfer scheme (Rs Crore) Approved in Approved in tariff order FY 2003-04 (dated 08.09.03) Depreciation Repair and maintenance Reasonable return Interest on loan Interest on security deposits Total Less: Revenue expenses capitalized Total 63.39 3.51 63.39 39.93 17.18 2.77 Supplementary order FY 2003-04 (dated 08.12.03) 25.24 3.78 2.95 Impact 8.06 1.01 -0.56 90.41 50.48

26.22 26.22 148.6 85.21 42.96 42.96 105.64 42.25

S O U R C E Supplementary order for UPCL for FY 2003-04 issued in December 2003

Table 9.66 Total impact of transfer scheme and state government directive

S.No Total impact of Transfer scheme & government letter (Rs crore) Impact of transfer 1 2 3 4 5 6 7 8 9 10 11 12 Depreciation Repair and maintenance Reasonable return Interest on loan Interest on security deposits Power purchase Sub-total (A) Less: Revenue expenses capitalized Trading income Sub-total (B) Net impact (A-B) 42.96 42.25 42.96 1.17 1.17 23.85 85.21 50.48 8.06 1.01 26.22 -0.56 7.78 25.02 17.24 Impact of 50.48 8.06 1.01 43.46 -0.56 7.78 110.23 0 42.96 1.17 44.13 66.1 scheme Government letter Total Impact

S O U R C E Supplementary order for UPCL for FY 2003-04 issued in December

2003

# ) , ) = P 4 = 4 = &

T E R I Report No. 2006RP23

; * = ; )

6) < & +6 ) < 2 = = CE &J * ,++

= 4 ) = H -

519 Analysis and compilation of tariff orders

CHAPTER

10 West Bengal

Introduction

A ; ) 3 ) ; ) + ) . ; 4 / ;A/. /< < ! CE *J 6 CE A J , , C 9 > CE CE * 6J / CE &< 3 > &4 ,999 ; ) / ) ) ) , ;,< <4 ,99+ A/ A/ < ) ;,< &

,J

) ) J &4 CE &J * 4 ) CE J ) A/. /

A/. / D= = ) ( 3

= N A 4 ) L = / $ 0 = * ! = 4 A/ )

-

Demand supply gap

$ 0 0 - , , , CE = ,J CE 6J -

T E R I Report No. 2006RP23

520 Analysis and compilation of tariff orders

Table 10.1 Energy availability/requirement

Year 2001-02 2002-03 2003-04 2004-05 2005-06 Requirement MU 20670 20551 22091 23155 24936 Availability MU 20575 20249 21608 22789 24509 Surplus/Deficit MU -95 -302 -483 -366 -427 % -0.5% -1.5% -2.2% -1.6% -1.7%

Source: www.cea.nic.in accessed during December 2006 Table 10.2 Peak demand/ peak met

Year 2001-02 2002-03 2003-04 2004-05 2005-06 Peak Demand MW 3614 3752 3836 4117 4743 Peak Met MW 3414 3418 3652 3965 4599 Surplus/ Deficit MW -200 -334 -184 -152 -144 % -5.5% -8.9% -4.8% -3.7& -3.0%

Source: www.cea.nic.in accessed during December 2006

Movement in installed capacity

C , , - , & = =

6 * +* *+ * (A ** * * &+ , 99+J 99 ,999J , J ,J & J &J * *J 6 6J *& * *,& * +* * +* * +* * 9, *

Figure 10.1 Installed capacity in West Bengal over the years Source: accessed during December 2006

CE ,999J

A / CE J , * +* (A * 9, (A CE *J 6 *6 6 &+ (A 4

CE

*& * (A &J *4

T E R I Report No. 2006RP23

521 Analysis and compilation of tariff orders CE CE J , CE *J 6B CE CE ,99+J99 69 , (A 4 6 (A CE 6J CE J , &J * 4 , * , (A CE *J 6 , 6J = (A *6,+ 6+ (A

- , &

=

J

=

Table 10.3 Capacity addition over the years

Sources Thermal Hydro Gas Others Total FY 1998-99 250 15 0 0 265 FY 1999-00 210 22.5 0 0 232.5 FY 2000-01 420 0 0 0 420 FY 2001-02 0 0 0 0 0 FY 2002-03 0 0 0 0 0 FY 2003-04 0 0 0 0 0 FY 2004-05 12.2 0 0 -5.67 6.53 FY 2005-06 -120 -3.01 0 59.12 -63.89

Source: Eastern Region Power Sector Profile, Ministry of Power, October 2006

&6+ 4 CE 4 CE *J 6 = 4 CE ,99+J99 = & &+ * (A CE , ,6 CE &J * CE (A4 &J * &6+ + (A 6J (A *J 64 , 96 (A

,& (A 6J

CE

J ,

+*

(A

CE

A/

)

A/. /

CE 4

&J *4 CE *=

*J 6 4

CE =L

6J

-

=

FY 2002-03 in Retrospect

C CE 4 ) J & 6,9 9 )

T E R I Report No. 2006RP23

J &4 ,, 9& ) = 3

A/. / =

=

& &, 3 CE 3 0 4

522 Analysis and compilation of tariff orders &96 9,6 9 )

)

!

CE

J &

Consumption and access Sales/demand estimation

A/. / &J * . 5G (F;5 % = 3 ( F < 3 CE 2F 3 J & 2F CE

C

) = 4 J ) CE *J 64 A/ . / (@ = CE &J *4 = % (@ ) 2 = 4 CE CE 5G (F 996, (@ I & &* (@ ) % J = ,,+** (@ ) = *J 6 6J 4 / $ J )

CE

&J * 4-

/ =

% J

- A/ . / =

, 6+9 T = I = 3 ) 9 9* (@ 4 4 - A/. / = / % J

69& (@4 2F 2F G * ,6 (@4 4 / 3 I CE 6J % / ,& +6 (@ = 3 4- 0 4 G ! 4 ) = = CE 6J

T E R I Report No. 2006RP23

523 Analysis and compilation of tariff orders

- , *

= CE

4 J , CE 6J

=

Table 10.4 Proposed, Approved and Actual Sales from FY 2000-01 to FY 200506 (in MU)

Proposed FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 8497 9196 9840 10550 10589 9951 Approved 9923 10748 9840 10550 9294 11845 Actual 8587 9484 9425 12900 13549 14727

Source: Tariff Orders from FY 2000-01 to 2005-06, Annual Audited accounts of WBSEB for FY 2003-04 and FY 2004-05 and Provisional Account of WBSEB for FY 2005-06

C J , 4 3 4 4 =

= = . 4 / P

= % 4 / 4 -

- = T CE ,J

CE

, ,* , 7 , +

*

CE , $ = +*9 99 & +6 +

J CE 9,9 ,

, J CE & 9+* 9+* 9* 6

J CE * , 66 , 66 , 9

& J CE 6

* J CE 996,

6J

, 6 +9 9 9* ,&6*9

*+

, , +*6 ,*

9*+*

Figure 10.2 Trend in proposed, approved and actual sales (in MU)

Source: Tariff Orders from FY 2000-01 to 2005-06, Annual Audited accounts of WBSEB for FY 2003-04 and FY 2004-05 and Provisional Account of WBSEB for FY 2005-06

T E R I Report No. 2006RP23

524 Analysis and compilation of tariff orders . C A / , & CE = &J * = CE 6J

14727

= J

, ,* , ;(@< , + 3128 3581 1159 815 * ) CE 6 3502 4065 1278 895 12900 13549

@

*

3039 1124 770

2987

CE !

CE

Figure 10.3 Trend in consumer category wise sales (in MU) in West Bengal over the years (actual data)

Source: Annual audited accounts of WBSEB for FY 2003-04 and 2004-05 and provisional accounts for FY 2005-06

= = A D= / ) = .

Category wise sales

. = % 2G 2F; . 4 = % = = 4) 3 4 = CE - 0 J , <

T E R I Report No. 2006RP23

525 Analysis and compilation of tariff orders

*6 * &6 & 6 ,6 , 6 CE , ! 2F CE ) ) 2F) CE & CE ) ) * CE 6 ) CE

.

(@

Figure 10.4 Category wise movement in sales

Source: Tariff petition of WBSEB for FY 2005-06

- , 6

=

) D

Table 10.5: Compounded Annual Growth Rate of category-wise sales

Consumer Category Domestic Consumer Commercial Consumer Industrial Consumer Irrigation Consumer HV and EHV Consumer Base Year 2000-01 2000-01 2001-02 2002-03 2000-01 CAGR 9.6% 6.3% 4.8% 5.5% 5.8%

Source: Annual Accounts of WBSEB for FY 2003-04, 2004-05 and 2005-06

) J CE = = CE 3 3 6J G ! = J

T E R I Report No. 2006RP23

CE / = *J 64 / = 6J 4 ) ) 4 2

&J *4

= -

= = 4

= 4- 0 -

% 4 G ! = % J = = 3 J = / 4- 0 ) / 4 - , CE 4

526 Analysis and compilation of tariff orders CE = 6J = CE ) 6J -

Table 10.6 Proposed and approved Energy Balance for FY 2005-06

S. No. SOURCES i) ii) iii) iv) UTILIZATION: i) Particulars Own Generation Auxiliary Consumption Sent out Generation Purchase Total Available Energy Export: (a) Sikkim (b) Others Sub-Total Trading: (a) CESC (b) Singur ­ Haripal Sub-Total Transmission loss on Trading T&D loss on sale of power to own consumers and in-house consumption Own in-house consumption Normative Sales Total Proposed MU 581.50 3.50 578 18758 19336 17 2687 2704 890 140 1030 Approved MU 581.50 3.50 578 18758 19336 17 2687 2704 830 140 970 46.75 3747.67 23 11844.62 19336.04

ii)

iii) iv)

5617 34 9951 19336

v) vi)

Source: Tariff Order for WBSEB for FY 2005-06

Number of consumers and connected load

0 CE ,999J = = =

70 No. of consumers (in lakhs) 60 50 40 30 20 10 0 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 31.41 35.66 37.28 42.28 46.41 57.96 51.02

C

/ 6 9 0 +* 6T , 6

&, *, CE / 6J P = -

Figure 10.5 No. of consumers over the years (in lakhs)

Source: Annual Accounts of WBSEB for FY 2003-04, 2004-05 and 2005-06

) )

J + T , - ,,T

T E R I Report No. 2006RP23

527 Analysis and compilation of tariff orders

,T T

) ,,T

! + T

Figure 10.6 Consumer mix in the state (FY 2005-06)

Source: Written information provided by WBSERC

CE C , CE J 6J

6J -

9 0J

(A

T ,9T

/

0. T

$A A 0 . $ ,T ) T ,,T

! 6*T

Figure 10.7 Break-up of the connected load (2005-06)

Source: Written information provided by WBSERC in December 2006

Observations

- , = CE = 6J -

T E R I Report No. 2006RP23

528 Analysis and compilation of tariff orders

Table 10.7 Sales and revenue contribution of various categories in FY 2005-06 (based on actual figures)

Category No. of consumers Nos. (in ' 000) 3937 534 103 3 % of total consumers % 84.8% 11.5% 0.0% 2.2% 0.1% Consumption MU 3533.2 1192.74 84 852 89 % of total consumption % 35.5% 12.0% 0.8% 8.6% 0.9% Revenue Rs. Crore 934.53 568.36 15.64 134.26 48.65 % of total revenue % 24.2% 14.7% 0.4% 3.5% 1.3%

Domestic Commercial Public Lighting Agriculture Public Water Works and Sewerage Pumping Industrial Railway Traction Bulk Supply Outside Supplies Total

66 0.019 0.005 0.001 4641

1.4% 0.0% 0.0% 0.0% 100

3353.31 638.35 149.4 9951

33.7% 6.4% 1.5% 100

1632.85 261.76 240.83 24.49 3861.37

42.3% 6.8% 6.2% 0.6% 100

Source: Provisional accounts of WBSEB for FY 2005-06

- = 4 +6T 4 H , *T / 0. T

4 * T 4 = 4

& T *T

&*T =

T ! &6T &*T ) , T 9T $5 ,T

$A A 0 . $ ,T

Figure 10.8 Category-wise consumption pattern in FY 2005-06 Source: Annual Accounts of WSBEB (provisional) for FY 2005-06

T E R I Report No. 2006RP23

529 Analysis and compilation of tariff orders

! ,T / 0. T *T ) 9T

$*T +T $A A 0 . $ ,T

5 ,T

T

Figure 10.9 Category-wise revenue in FY 2005-06 Source: Annual Accounts of WSBEB (provisional) for FY 2005-06

/ =

- = 4

= - , +

Table 10.8 Average consumption per consumer (based on actuals of FY 2005-06)

Consumer Category Domestic Commercial Agriculture Public Water Works and Sewerage Pumping Industrial Total Average consumption (Units per consumer) 890 2395 8699 44554 61258 117796

Source: Annual Accounts of WSBEB (provisional) for FY 2005-06

C

- =

= =

= C

4 0

- , 9 CE

**

4

= = =

6J

T E R I Report No. 2006RP23

530 Analysis and compilation of tariff orders

Table 10.9 Connected load per consumer in FY 2005-06

Per consumer load (kW/ consumer) Domestic Commercial Public Lighting Irrigation and Dewatering Public Water Works and Sewerage Pumping Industrial Total No. of consumers 4861283 650237 106954 3680 Connected load (MW) 4851.34 1036.95 26 521 79.6 Connected load per consumer (kW) 0.99 1.59 4.87 21.63

73009 5695858

1738.67 9066.26

23.81 1.59

Source: Written information provided by WBERC in December 2006

Status of rural electrification

@ ; D F D E< %=D D - ( &+6 * ) = ,+ F $ - , , A / 0 E % 64 A /

Table 10.10 Rural household electrification

Total number of Households having rural Households 11,161,870

Electricity

% Electrified Households 20.3%

Unelectrified Households 8,899,353

% Unelectrified Households 79.7%

2,262,517

Source: Ministry of Power website (www.powermin.nic.in) accessed on 6th December 2006

= &+* < = @ *,& = D F A/. / D E4 CE J 1 $ 0 0 0, ,," = L ;= < L 0 3 =

4

T; 9* A /

4 A/. / J

L

-

Source: Ministry of Power website accessed on December 6, 2006 http://www.powermin.nic.in/bharatnirman/progress%20on%20electrification%20of%20villag es%20&%20households.pdf

1

T E R I Report No. 2006RP23

531 Analysis and compilation of tariff orders

Table 10.11 Status of WBSEB programme for electrification of un-electrified mouzas

1. 2. 3. a) b) c) d) e) a) b) Total Mouza proposed to be covered under AREP Balance under execution by WBREDC, WBSEB & WBREDA schemes Already sanctioned under AREP Break-up of Sanctioned Mouzas : Bankura & West Midnapore (other than Kharagpur I & II Block) will be executed by PGCIL Purulia District will be executed by NHPC East Midnapore will be executed by DVC West Midnapore District (Kharagpur I & II Block) will be executed by NTPC Work to be executed by WBSEB 467 807 225 457 Nos. Nos. Nos. Nos. 2327 Nos. 4394 1273 4283 Nos. Nos. Nos.

Source: WBSEB Tariff Petition for FY 2005-06

Efficiency improvement Approach for fixing loss reduction targets

C CE & T J &4 A/. / % ) CE J ,; 3 / = &9 T & H J K ( * () ; J CE ,999J ) . ) ) = 4 A/. / ; A/ % )= ) . )< 0 = G ! 3 - 0 6T = = G ! &*T = < 3*

() ;

() ;

@ I ) J &; < 3 CE *J 6 = G ! A/. / - A/ / ) 4 = G ! 6T CE - 0 = 6T

6T

0 CE

6J

T E R I Report No. 2006RP23

532 Analysis and compilation of tariff orders

CE

&J *4 A/. / -

0

2

= &J * = CE

/ ) 6T CE *J 64 &J * /

G ! &J * * 6T 4 G ! = = CE

& T J & G !

CE

&

T 6T CE = 0

*J 6 ) CE *J 6 6J 4 A/. / G ) 0 ) ) =

G !

=

= & T4 G ! 3

I = 6T *J 6 / +9 (@ **6 G ! ;2F! .< N .

)

I A/. / = ! -

0 . -J T

2

5 ;D .< 0

$F) 0

- 4D ,

,, ?F

) CE I *T % 6J J - 0 ) 3 I =

= = G ! 4 . G ! < =

A/. / *T 2 ; % = I

) . 5 ) = 5 4- 0 = 2 4 =

= - , ,

=

T E R I Report No. 2006RP23

533 Analysis and compilation of tariff orders

Table 10.12 Year-wise comparison of proposed and approved total energy losses

Particulars (in MU) Net Generation Power Purchase Total Available Energy Less: Trading including Export Net Available Energy Transmission loss on trading T&D loss on Sale of power to own consumers and inhouse consumption Own consumption Overall T&D loss FY 2003-04 Proposed 550 Approved 550 17969 18519 2959 15560 FY 2004-05 Proposed 547.25 17087 17634.25 2600 15034.25 Approved 547.25 17257 17804.3 3905 13899.3 FY 2005-06 Proposed Approved 578 578 18758 18758 19336 19336 2687 15602 3674 15662 46.75

4701

22 3896

30 4582

23 3474.81

34 5614

3747.67 23 3794

Overall T&D loss (%) Unaccounted Energy Projected Sale

32 10550

25 1092 10550

30.2 10589

25 1107 9294

25* 9951

24 11845

* ARR has been computed by WBSEB after taking into account 36% as AT&C losses

Source: WBSEB Tariff Petition for FY 2003-04 to 2005-06 and WBERC Tariff Orders for WBSEB for FY 2003-04 to 2005-06

CE ,99 J9 J , CE A / )

CE

) D J ,

T 6 ;J< 6 ,+T

J CE ,99 J9 ,999J CE J , CE

J

CE G ! ./ =

# 8" * &6 & 6 ,6 , 6

2 ;= ? 3 4 4

9+ J9 9

96 J9

J9 +

J9

J

*

&

*J

6 6J

, ,J

J

&J

9

9

,9

,9

,9

,9

,9

99

J

$

G !

Figure 10.10 Trend of T&D loss levels (FY 96-06)

Source: Tariff orders for FY 2002-03 to FY 2005-06 SEB Report 2002, Planning Commission

T E R I Report No. 2006RP23

J

534 Analysis and compilation of tariff orders - , ,& A/ ) = = - I = = ; CE = J ,<4 = JOJ= -

Table 10.13 Multi-year T&D loss reduction targets

Year FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 % loss level (WBERC approved in FY 2000-01) 30% 27.5% 25% 22.5% 20% Expected % loss level (proposed by WBSEB) 38% 36% 34% 32% 30.20% 25%* 23% 30% 27.5% 27.5% 25% 25% 24%** 23% Approved in tariff orders

*Only average cost of supply has been worked out considering T&D loss of 25%. ARR for 2005-06 has been computed by WBSEB considering AT&C loss of 36% **T&D loss level for WBSEB's own consumers and in-house consumption Source: Tariff Orders issued by WBERC for WBSEB from FY 2000-01 to 2006-07

) , / 0 6T = 4 I

A/. / G ! 0 = A/. / * T CE 0 G ! 6J 4 4 = 3* = A/ = ) = J G ! A/. / 0 G ! ) G ! = & T 3

CE ) D -

J

- = = / = I

0 G ! 3

-

*T

A/. /P 4 *T )

I

Collection efficiency

$ = S = C 3 = 4 - !. )H(. A = = = = / !. )H(. = 6 6J ! = 0 P

,66 CE =

T E R I Report No. 2006RP23

535 Analysis and compilation of tariff orders ) ) = I = = I D 4 4= G 4 A/. / = = CE 0 J &4 CE / G ) &J * CE 36 = % % G ! = A/. / 6 43 G ) = I CE 0 A/. / , 6J 4 / G ) L = ;. 5$ G < = 2 = ! ;2F! .< N -J $F) -J , ?F 4 ,,N * ?F 4 0 04 D 0 I . H 0 )E(! .

T E R I Report No. 2006RP23

3 3

-

A

/

= I 4

-

AT&C losses

*J 64 ) G ! = 4 )

/

0 5 $ = ,, ?F A L

T . = -

.

5 C = = .A

;D .<

-

536 Analysis and compilation of tariff orders = J G ) = A/. / - , ,* CE ,J CE

Table 10.14 AT&C losses for the Discoms

DISCOM WBSEB FY 2001-02 35.30% FY 2002-03 31.38% FY 2003-04 41.22% FY 2004-05 44.42% FY 2005-06 36% FY 2006-07 (proposed) 33% Source: Tariff Orders for FY 2000-01 to FY 2005-06

Metering

CE A/. / -J + .A CE - &, ( , T CE G ) F -J C .A ) I / ) -J D= A , ,6 / = ) P = = ! N . $F) 4 -J , 0F 4 ,,N * 0F = CE 6J 4 = A/. /4 / 5 6J 4 A/. / 0 4 / ) 4 = 2 *J 64 A/. / = & / ,, 0F , T ,, 0F = ;. A< - &, ( & J & = , J T = J &4 ) I = , / , T T

T E R I Report No. 2006RP23

537 Analysis and compilation of tariff orders

Table 10.15 Status of metering (FY 2004-05 and 2005-06)

FY 2004-05 FY 2005-06 Particulars Numbers Metered %age Numbers Metered %age 11 kV Feeders 2347 2347 100 2347 2347 100 Distribution transformer 53420 13500 25 53420 13500 25 Consumer metering (in lakhs) 47.27 45.89 97 57.31 56.70 99 Source: Website of Ministry of Power,

!

-

4

,, 0F = 2 G

A 99T

/ -

WBSEB's own generation

C CE , ,, = *J 6 4 CE &J * CE CE 6J 4 I 3 9T *J 6 I A/. /P I

, 96 ,9 , +6 66& ,+ (@ , 6 , , 6 , CE &J * $ $ CE *J 6 H D CE 6J , 9 9 , 6 66 ,+ 6+ 6 +,

Figure 10.11 WBSEB's own generation vis-à-vis power purchase over the years

Source: Tariff Orders of FY 2003-04 to 2005-06 and tariff petitions of WBSEB

A/. /P / ) C 2 > = = 0 4 % A = ) $ 5C 4> 0

= -

4

0 - $ 5C 6*T C 2 $ % +J 9T

*6T

T E R I Report No. 2006RP23

538 Analysis and compilation of tariff orders % 0 && ! 3 A/. / (A D . = $ / 4 4 / . 4 . J A/. /P = = =

, 96 ,9 7 , +6 , 9 , +6 ,+ 7 & , 6 , CE = &J * CE *J 6 T CE 6J T & T & ,T ,9&& & ,T & ,T & ,T & & & & & , + * T T T T T 9T 9T

&& 4

/

,, J,& ? - 4 3 ,3 D 0

-

3 (A .

2 =

= A -

= ! = / <

3

=

;. = P = )

$

<

=

-

;

Figure 10.12 Percentage contribution of WBSEB's own generation to the total energy availability over the years

Source: Tariff Orders of FY 2003-04 to 2005-06 and tariff petitions of WBSEB

Power purchase

= = T E R I Report No. 2006RP23

L

- , , "

539 Analysis and compilation of tariff orders

Table 10.16 Power Purchase Schedule (units purchased and total charges) over the years

Sources 2003-04 PTC (Chuka) NEEPCO WBPDCL (Bandel) WBPDCL (Kolaghat) DPL WBPDCL (Santaldih) NTPC (Farakka) PTC (Kurichhu) WBPDCL (Bakreshwar) NHPC (Rangeet) NTPC (Kahalgaon) DVC DPSCL Govt. of Sikkim (Rangpoo) WBREDA Sub-total (a) Less: UI and grid loss on the energy import from CSGS Net power purchase Transmission cost Sub-total (b) Wheeling charges Sub-total (c) Total power purchase cost Source: Tariff Orders for FY 2003-04 to 2005-06 17969 17257 18758 44.63 44.63 23.38 23.38 3273.71 66.93 66.93 23.3 23.3 3188.76 76.42 76.42 1.32 1.32 3509.77 17969 17257 1 19465.8 707.76 3205.7 3098.53 0.22 3514.69 500 220 1864 6026 319 1335 2370 120 3410 150 805 680 170 0.02 1604 6026 207 1123 2685 100 3596 147 11 610 154 1605.04 6766.88 216.12 1122.68 3000 100 3745.88 75 160 1482.62 90.54 0.04 MU (approved) 2004-05 500 2005-06 500 2003-04 62.5 30.25 286.42 949.88 53.9 243.66 422.71 21.72 701.03 31.65 171.88 177.83 52.26 0.01 298.84 1096.97 38.71 192.22 472.56 18.1 596.61 31.61 2.31 171.77 46.66 304.54 1166.89 44.82 210.62 516.84 18.1 711.55 23.8 34.7 317.07 29.57 0.001 Rs. Crore 2004-05 62.5 2005-06 62.5

A/. /P I A / $ ! = ) 5 ;A/$ !)5<4 ! $ % 5 ;!$ 5<4 ! $ . ) 5 ! F ) ;!F )<4 $ ) 5 ; $ )<4 $ ) ;$ )<4 2 $ ) ; 2$ )< A / ! = ;A/ ! < = A/. /

T E R I Report No. 2006RP23

4 /

;!$ )<4 .

C

- = 4 CE &J *

CE CE 6J *J 64

540 Analysis and compilation of tariff orders , 9& ) ) CE CE &J *4 &,++ ) CE 6J / 4&6 9 ) ) 0 = ( 3 / P$ / P H L ) . 0 N 3 = 4 *J 6 &&9 &+ ) = &, ) 4 = =

&

& ,

- A/. / "

) A/. / / /

CE

*J 6 4

K C

@ I - , , = = - A/ I )

Table 10.17 Approved power purchase cost and units over the years

Description Unit (MU) Cost of Power Purchase (Rs. Crore) Average per unit cost (Rs. Per unit) FY 2003-04 17969.02 3273.71 1.82 FY 2004-05 17257 3188.76 1.85 FY 2005-06 18758 3509.77 1.87

Source: WBERC Tariff Orders issued for WBSEB from FY 2003-04 to 2005-06

C

, ,& = ; < =

T E R I Report No. 2006RP23

541 Analysis and compilation of tariff orders

& 6 * & @ ,T * * 9 *T + T 9 + * + 6 **

T T

(@

,

T T T T T

,

CE = )

&J * $

CE $

*J 6

CE T

6J =

Figure 10.13 Power Purchase cost as a percentage of the total revenue cost (actual data) over the years

Source: WBERC Tariff Orders issued for WBSEB from FY 2003-04 to 2005-06

Trading and UI

N3 &J *4 CE *J 6 CE = - , ,+ @ 6J CE A /

Table 10.18 Details of trading/ export and UI transactions over the years

Inter-state sale MU % of total sale FY 2003-04 FY 2004-05 FY 2005-06 3124 3099 3097 24.22% 22.87% 21.03% Average Realization (Rs./ unit) 2.1 2.22 3.03 46 73 96 0.36% 0.54% 0.65% MU Outside supply % of total sale Average Realization (Rs./ unit) 3.54 3.28 2.54 UI charge Net UI Realization (Rs. Crore) 98 150 188

Source: Annual audited accounts of WBSEB for FY 2003-04 and FY2004-05 and for FY 2005-06 provisional accounts

Employee cost

CE = &J * A/. / 4 = / 3 +6++ = ) J % - 4 *+**

T E R I Report No. 2006RP23

CE

*J 64 A/. /

/ = 6+,,

542 Analysis and compilation of tariff orders , 66+ -

CE -

&J *4 3

) -

0

A/. / P 3

= 4 0 = CE = *J 64 =

2

= 4 !

/ 3 0

) 6T = *9, / A/. / L = 4 CE *9, ) &J * = 4 0J ) -

4 CE

J &

% =

) 6T =

4

CE CE

0 J & *J 6

CE 6J A/. / / 996 / *&+ *& ) =

4 -

= T

3 9++ = % ,6 0 )

%

-

4

L I ) = 4 ) * 6 ,) 0J = / C CE = 6J

T E R I Report No. 2006RP23

543 Analysis and compilation of tariff orders

- , ,9

= =

4

=

Table 10.19 Comparison of employee cost- proposed, approved and actual over the years

Year FY 2003-04 FY 2004-05 FY 2005-06

Proposed Rs Crore 522.38 514.46 438.43

Approved Rs Crore 491.27 491.57 425.71

Actual Rs Crore 446.48 468.31 495.66*

*As per

provisional accounts of WBSEB for FY 2005-06 Source: WBERC Tariff Orders from FY 2003-04 to 2005-06, WBSEB Tariff Petitions and Annual accounts of WBSEB

B C , ,*4 CE 6J CE - I *J 6 *J 6

-

-

- I = CE - =

CE

CE &J * CE *J 6 CE 6J = - A/ ) = CE 4 6J

*J 64 CE &J *4 = -

= *J 6 CE ) = *J 6 CE CE *J

4 CE 6J

64

T E R I Report No. 2006RP23

544 Analysis and compilation of tariff orders

6 *+ +-** ** * * &+

*9,

*9,

6

,9T , *T * 9T

,6 , 6 D 6J

&J * ;

*J 6

T

Figure 10.14 Employee cost as a percentage of ARR

Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06

Table 10.20 Employee cost per unit of sale

Year FY 2003-04 FY 2004-05 FY 2005-06 Employee cost per unit of sales (Paise/ unit) 46.57 52.86 35.94

= = = 4 2 L - A/. / 4 T CE ,J 2 = 4 CE 6J + T 3 = C = , ,6

T E R I Report No. 2006RP23

545 Analysis and compilation of tariff orders

, , , 9 + + 9

* + *

,J

J &

&J *

*J 6

6J

Figure 10.15 Number of employees per thousand consumers Source: Annual accounts of WBSEB for FY 2003-04, 2004-05, 2005-06

Table 10.21 Revenue per employee

Year FY 2003-04 FY 2004-05 FY 2005-06 No of employees 31625 29956 27988 Revenue Rs Crore 3892 4130 4901 Actual Actual Actual Revenue/employee Rs/Employee 1230542 1378575 1751068

Source. Annual accounts of WBSEB for FY 2003-04 to FY 2005-06

= = =

Repair and maintenance expenses

CE / = = = ) = I 6J 4 A/ ) - A/. /4 = = = 4 A/. / ) = = G 3 ( =

- ,

= =

4

=

T E R I Report No. 2006RP23

546 Analysis and compilation of tariff orders

Table 10.22 R&M expenses (proposed, approved and actual) over the years

Year FY 2003-04 FY 2004-05 Proposed Rs Crore 94.05** 98.33** Approved Rs Crore 94.05** 98.33** Actual Rs Crore 69.93 81.47

FY 2005-06 117.64 117.27 88.80* *As per provisional accounts of WBSEB for FY 2005-06 **O&M expenses as submitted in WBSEB's tariff petitions and as approved by WBERC in tariff orders for FY 2003-04 and 2004-05 Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06

C D ;

, , C3 =

G 3 ( ;D < = C <

,* , , ) + 9*

, 9T 6 9+ &&

,,

* , +T

, 9T , 9T , +T , +T , T T T T , , ,

*

,

T

, 6T &J * G ( 3 ; = < *J 6 G ( 3 6J T DC

Figure 10.16 Repair and maintenance expenses as a percentage of GFA

Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06

Administrative and General Expenses

= 3 4 4 3 / = % = 3 3 4 = 3 = = 4 / 3 CE I = 6T = 4 &J *4 % D ; G < 3 D 4 3 4 4 4 = 4= 4 A/ ) = G D - A/. / 3 CE J & 3 = = % H = 4 / )

) /

= 3 -

T E R I Report No. 2006RP23

547 Analysis and compilation of tariff orders CE % = 4 = = 0 % G 3 D 4 *J 64 ) / I = ) A/. / 3 4 = = G 3 D +* ) /

CE 6J G 3 D , &

4

/ )

-

-

0J L

-

Table 10.23 Break-up of A&G expenses (proposed by WBSEB) for FY 2005-06

A&G expenses Rent, Rates and Taxes Legal charges Audit fees Others1 Total Rs. Crore 6.73 1.45 1.54 62.83 72.55

Source: Tariff Petition of WBSEB for FY 2005-06

) P = 5 4 = $ = =

A/. / 4 A ) A/. / 4 G 3 D - , * = G 3 D = L =

=

L

= 73

N A/ ) G 3 3 4

2 ) - A/. / =

=

Table 10.24 A&G expenses (Proposed, approved and actual) over the years

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed Rs Crore 65.14 68.47 68.95 Approved Rs Crore 65.14 68.47 68.95 Actual Rs Crore 59.50 63.94 77.38*

* As per provisional account of WBSEB for FY 2005-06 Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06 and WBSEB annual accounts

1 The other A&G expenses include Insurance, Security expenses, Telephones, Trunk calls, Postage, Conveyance and Travelling, Printing and Stationery, Service charges for P&T employees and Freight related expenses. Out of the total Other A&G expenses, Rs. 3.60 Crore were proposed to be allocated to ongoing capital works and the balance Rs. 53.89 Crore was to be charged to the Revenue account.

T E R I Report No. 2006RP23

548 Analysis and compilation of tariff orders C - = 4 , , C G 3 D , ,94 - = G 3 D G 3 D =

4 G 3 D CE &J * CE CE *J 6 CE 6J = - A/ ) CE = CE &J *4 4 4 G 3 D CE *J 6 = 4 G 3 D *J 6 CE 6J CE *J 64 CE 6J = =

3 *J 6 CE 6J *J 64

*J 64 = *J 614 G D CE ) = CE

. *J 6

4

2

) CE = 4

CE &J *4 G 3 D

CE ) =

1 Refer 2 Refer

to table 10.33 to table 10.4

T E R I Report No. 2006RP23

549 Analysis and compilation of tariff orders

& 6 4 -$ -> D

B -) $-B D ,->

+

, 6 , 6

* -,D & ,

D

&J * G 3 D T

*J 6 G 3 D

6J

Figure 10.17 A&G expense as a percentage of ARR and per unit sales

Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06

Total operating expenditure (Employee cost, R&M and A&G expenses)

% 3 ,+T CE *J 6 HG ( C , ,+ CE =L HG ( &J * ,&T CE 6J = 4

6 (

6

T

& T 6 * & , 4 -= & 69 6+ 6 6 4 -)4 ,? , +T 4 -? ,> B ,6 , D

+ *-

,&T

&J *

HG ) (

*J 6

HG ) ( T

6J

Figure 10.18 O&M cost as a percentage of ARR

Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06

- , =

6

= < =

3

;

4

T E R I Report No. 2006RP23

550 Analysis and compilation of tariff orders

Table 10.25 Operating expenditure over the years

Year Proposed Rs Crore FY 2003-04 FY 2004-05 FY 2005-06 681.57 681.26 624.65 Approved Rs Crore 650.46 658.07 611.93 Actual Rs Crore 575.91 613.72 661.84 61.7 70.8 51.7 18% 26% 13% Per unit of sale* Paise/ unit As a percentage of ARR* %

* Based on approved figures Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06 and WBSEB annual accounts

-

=

4

HG 3 ( CE 3 CE *J 6 &J * CE CE 6J -J

*J 6 G 3 D

Depreciation

CE &J *4 9 ) = = 4 I 3 ) 3 A/. / 3 / 4 = &J * I ) H 4) CE 3 C 4 = / 0 ;. D= < J ,9*+ % / 4 G ! /

CE *J 64 A/. / &,, ) ) J % 3 = = = 4 -

/ A/. /P % = / / * 4 )

) 3 4 ) 0

= CE 6J 4 T E R I Report No. 2006RP23

) / ) )

= D= /

551 Analysis and compilation of tariff orders = ) = 3 A/. / CE = H , ! A/ ) = 4 = = . CE 64 A/ ) ) 4 6P .- I 4S 4 / ) 6J = ;. = < 4 ,9*+ -% ) % 3 4 ,96

J

- ,

Table 10.26 Depreciation amount (proposed, approved and actual) over the years (Rs. Crore)

Year FY 2003-04 FY 2004-05 FY 2005-06 Proposed 279.27 311.02 394.14 Approved 200 274.67 394.14 Actual 319.78 347.73 396.32 Basis As per provisions of the Electricity (Supply) Act 1948 As per provisions of the Electricity (Supply) Act 1948 As per WBERC Terms and Conditions of Tariff, 2005

Source: Tariff Orders for FY 2003-04 to FY 2005-06 and Annual accounts of WBSEB from FY 2003-04 to 2005-06

Sources of funds

" 2 "+ 3 / **+ 6 ) 8+ # % $ $ ! 0 = -

Table 10.27 Details of APDRP schemes (as on 30th June 2006)

Schemes

3 Circle Scheme 8 Town Scheme 5 Town Scheme, GIS mapping of power and automation of distribution system of Jadhavpur University 2 City Improvement Schemes 23rd March 2005 27.58 0% Source: Website of APDRP, www.apdrp.com accessed in December 2006

Year of sanction

16th July 2002 20th May 2003 28th November 2003

Project cost (Rs. Crore)

132.71 71.55 216.66

Percentage of work completion

97% 64% 34%

= J , 0F 4 L

T E R I Report No. 2006RP23

4 ,, 0F 4

552 Analysis and compilation of tariff orders G ! = 4/ A / = !$ P $ $ ! C , ,9 A / = & > 6 = 4 @ % = = 4D= =

= - =

, % -

= , ** ) 9& ) =

,&, )

6 *6 * &6 & 6 ,6 , 6

**

)

*, , &,

, 6 & &

9&

$ % H

Figure 10.19 Details of APDRP disbursements and utilization

Source: Website of APDRP, www.apdrp.com accessed in December 2006

(

# =

* $ C) - ,

A +"

)N $ C .

/

6 H

=

-

Table 10.28 Status of PFC lending

Utilities Calcutta Electric Supply Company Damodar Valley Corporation Durgapur Projects West Bengal Power Development Corporation West Bengal Renewable Energy Development Agency West Bengal Rural Development Corporation West Bengal State Electricity Board Total Total Sanctions (Rs. Million) 3216.8 27526 12925 17413.69 33.9 2.51 9977.74 71095.65 2.51 4062.93 30746.83 Total Disbursements (Rs. Million) 3216.64 4645.17 8352.19 10467.4

Source: PowerLine. Volume 11. No 2, October 2006 T E R I Report No. 2006RP23

553 Analysis and compilation of tariff orders

Interest and finance charges

/ L 69, ,9 ) *,+ 9 ) = C P3 % & ) &&9 * ) = = 4 = - , 9 , , +6 ) = = C CE < CE ; ) 99& && ) *J 6 & ) CE CE ) L = = *J 6 = & 9 ) 6J 4 / &J * = < ;

4

Table 10.29 Details of interest and finance charges (proposed and approved) over the years (Rs. Crore)

Interest & Finance charges Interest on borrowing Other Interest Other Finance charges Total Estimated capitalization of Interest on borrowings (Less) Amount chargeable to revenue account 993.33 353.85 260.32 418.693 (362.76) 161.85 1Interest on fund for liquidation of dues to Central Public Sector Undertakings (CPSUs) 2Interest on account of Securitization scheme for power purchase dues (on Rs. 1850.62 @ 8.5% 3Less Interest disallowed on disallowed capital cost of Rs. 150 Crore @14.5% 4Includes adjustment of earlier years' excess interest amount of Rs.637.96 Crore Source: Tariff Orders for WBSEB from FY 2003-04 to 2005-06 466.09 237.34 344.85 445.82 875.304 541.84 896.32 534.191 28.91 1459.42 Proposed 395.58 157.302 38.31 591.19 173.59 274.28 45.66 447.87 857.35 28.91 886.26 Approved 395.58 78.65 38.31 512.54 161.85 173.59 5.00 703.69 2003-04 2004-05 2005-06 2003-04 2004-05 2005-06

CE C 0 J I

&J *4 CE / 4

*J 6

CE A/ )

6J

4

64 0

/ 0 / ;

CE

<

Provision of bad and doubtful debts

CE = &J *4 = / ) ,& ) % 4 = 4

T E R I Report No. 2006RP23

554 Analysis and compilation of tariff orders = 0 = = CE ) ) = CE 6J 4 / N / . L &4 / L - 0 L 0 0 0 4 = L 3 4 ) = JOJ= CE 6J CE 9 - , & = L - 0 6J ! = = 3 = P ) = - = 3 / *+ = L ) L CE *J 64 = &J * / / = , ) CE 0 *J 6 +, ,) -

/

) ) 0

A/. /

Table 10.30 Total amount of dues settled vis-à-vis amount waived (Rs. Crore)

Total amount of dues lying disputed/ unsettled The settle amounts are 10.87 3.78 7.09 being realized Source: Tariff Petition of WBSEB for FY 2005-06 Amount settled by the Committee Amount waived Remarks

) = ,6 ) 6J - , &, = 4 = = ) 3

0

- A/. / B = -

-

CE

T E R I Report No. 2006RP23

555 Analysis and compilation of tariff orders

Table 10.31 Bad and doubtful debts (proposed, approved and actual) over the years (Rs. Crore)

Year Proposed Approved Actual Bad and doubtful debts written off FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 9.34 8.22 21.37 8.16 30.23 9.34 1.00 1.00 2.16 15.00 27.16 1.76 Bad and doubtful debts provided for 9.17 7.02 8.25 2.39 1.62

Source: Tariff Orders for FY 2003-04 to 2005-06 and annual accounts of WBSEB for 200304 to 005-06

Rate of return

&J *4 A/. / &T 3 = &J *4 ) ,6 ) ) J ) ) *6 ) = CE * *J 64 / ) I = = ) *J 6 CE 0 ;. 4 < 4 $ &4 I / 4 ,9*+ &T + +) & = A/ ) / 4 ) ) 5 4 = I C3 ) 4 / 6J / 4 A/. / & CE ) = ;. C $ % 3 = / I 4 ) I &T *6 ) 4 I = CE ) / I 3 < = J 4 P ,9*+ ! CE

66

-

T E R I Report No. 2006RP23

556 Analysis and compilation of tariff orders , 9 ) ,& 6T;. $ 8&T< / 5 I

Table 10.32 Proposed and approved return on equity amount over the years (Rs. Crore)

FY 2003-04 Proposed 60.27 Approved 55.77 FY 2004-05 Proposed 64.70 Approved 60.20 FY 2005-06 Proposed 78.68 Approved 179.22

Basis for proposed amount was 3% return on capital base; basis for approved amount- adjustment for disallowance of capital cost

Basis for proposed amount was 3% return on capital base; basis for approved amountadjustment for disallowance of capital cost

Basis for proposed amount was 3% return on capital base; basis for approved amount- reasonable return on equity capital of the Board @ 13.25% (SBI PLR+3%)

Annual Revenue Requirement (ARR)

- , && ; = < =

Table 10.33 Comparison of proposed and approved ARR over the last three years (in Rs. Crore)

Particulars WBSEB Fuel cost for Power Generation Purchase of Power Interest and Finance charges (net of capitalization) Depreciation Employee cost R&M A&G Provision for Doubtful Debts Reasonable Return on Equity Gross Fixed Charges Total Revenue Cost Less: Miscellaneous receipts/ Other Income (Non-Tariff) GoWB support Net ARR 1.29 2721.93 993.33 WBERC 0.4 3273.71 418.69 2003-04 Actual 0.51 3333.53 490.93 WBSEB 0.6 3100.22 353.85 WBERC 0.6 3188.76 -362.76 2004-05 Actual 0.54 3250.33 542.59 WBSEB 0.45 3397.39 339.04 WBERC 0.45 3509.77 199.91 2005-06 Actual 0.6 3877.87 751.64

279.27 522.38 94.05 65.14 21.37 60.27 1883.39 4606.61 80

200 491.27 94.05 65.14 1 55.77 1137.15 4411.26 100

243.51 371.66 69.93 55.96 8.25

311.02 514.46 98.33 68.47 8.16 64.7

274.67 491.27 98.33 68.47 2.16 60.2 480.3 3669.66 100

300.47 395.31 81.47 60.65 2.39

394.14 438.43 117.27 68.95 30.23 78.68

394.14 425.71 117.27 68.95 15 179.22 1220.98 4731.2 111.3

352.17 495.66 88.8 77.38 1.62

1290.35 4624.39 388.25

1262.7 4363.52 114.94

1431.62 4682.49 294.66

1388.06 4785.9 111.3

1765.65 5644.12 371.15

0 4586.88

0 4367.03

3891.59

0 4313.28

0 3629.86

4129.66

0 4753.28

0 4701.99

4900.89

Source: Tariff Orders for FY 2003-04 to 2005-06 and annual accounts of WBSEB for 200304 to 005-06

-

= 3

4 ) 3

= =

-

T E R I Report No. 2006RP23

557 Analysis and compilation of tariff orders - , &* = = ; <

Table 10.34 Percentage contribution by different cost elements to the total revenue cost in FY 2003-04, 2004-05, 2005-06

Percentage contribution by different cost elements Fuel cost for Power Generation Purchase of Power Interest on loan Interest on Consumer' Security Deposit s Other Finance charges Interest and Finance charges (net of capitalization) Depreciation Employee cost R&M A&G Provision for Doubtful Debts Reasonable Return on Equity Total Revenue Cost (Rs. Crore) FY 2003-04 0.0% 72.1% 0.0% 0.0% 0.0% 10.6% 5.3% 8.0% 1.5% 1.2% 0.2% 0.0% 4624.39 FY 2004-05 0.0% 69.4% 0.0% 0.0% 0.0% 11.6% 6.4% 8.4% 1.7% 1.3% 0.1% 0.0% 4682.49 FY 2005-06 0.0% 68.7% 0.0% 0.0% 0.0% 13.3% 6.2% 8.8% 1.6% 1.4% 0.0% 0.0% 5644.12

Source: Annual accounts of WBSEB, FY 2003-04 to 2005-06

3 = = C ,

- = = 4 = 3

%

-

4 =

=

6 * &

, &J * A/. / A/ ) *6+ *& ++ & *J 6 *&,& & 9 + + 6J * 6& * *9 ) +

, 99 +9

& +9, 6 9 A/. /

*, 9 A/

Figure 10.20 Proposed, approved and actual ARR over the last 3 years

Source: Tariff Orders from FY 2003-04 to 2005-06, annual accounts of WBSEB

T E R I Report No. 2006RP23

558 Analysis and compilation of tariff orders

Tariff /rate balancing Tariff rationalization

A/. / " <$ " C3 ) 3 , N J 2$ - * $ C3 J 1 ,, T ( ( - - 2 ) - , T 0 . 45 $. L @ - G ! 1 ) , N ?A , N J 5 CE 6J -

A

A 0 G) 4 ! 3

@ /< 4 )< / 2 N2 = 3 !< $ 3 - 0 = N 3

! N = = 3 - N 3 = 4 3 4 A

<( 3 J 6 ?F = !

= = -%

J

0 6T

T E R I Report No. 2006RP23

559 Analysis and compilation of tariff orders A C = CE 4 " H! - 6 T 6J ) 4 0 4 0

= - &,T 3 4 3 T = ) $ C 4 = 4 4 ) ) 4 3 3 4 ; H!

J

<

4

4 T

6 ) . D= N ) A/ ! C 4 H & H ) = 4 4 4 6 = ) Q 4 3 4 D= - 3 =

=

0

6R

,

=

-

6 4

! =

New initiatives in tariff design

) ) 4 ; A ) 4 = * = ; 6 H-% 0 ) 0 4

T E R I Report No. 2006RP23

# (

%

## # A / ) & H / )

< <

N

H

560 Analysis and compilation of tariff orders Q ( J ;(E < C (E L 0R. 0 - , &6 -

Table 10.35 Salient features of draft tariff regulations

Functions Multi-year Tariff Framework Specific provisions in draft regulations with regard to MYT

J

Trajectory based of normative parameter spreading over the control period will be stipulated by the Commission as operational target parameter for improvement / sustenance of the operation of the generating company or licensee. This specific parameters will include the following: a. Station heat rate, plant load factor, availability factor, oil consumption rate and auxiliary consumption rate for thermal power station; b. Capacity index, auxiliary consumption rate, plant load factor and transformation losses rate for hydro power station; c. Ratio of pumping energy and generated energy, auxiliary consumption rate and availability rate, transformation losses of pumped storage plant; d. Combined Technical losses and non-technical losses (T&D loss) of distribution and transmission licensee.

J J

ARR is to be based on normative parameter of the above trajectory as stipulated by the Commission Annual review of performance vis-à-vis the approved projection and categorization of variations in performance into those that were caused by factors within the control of the generating company or transmission / distribution licensee (controllable factors) and those caused by factors beyond the control of the generating company or transmission / distribution licensee (uncontrollable factors);

J

Any variation arising out of controllable factors using normative parameters, wherever applicable, for determinations of allowable normative expenditure on that factor, shall be borne by licensee or generating company;

Control Period

J

The first control period under the Multi Year Tariff framework shall be of duration of 1 year commencing from financial year 2007 ­ 2008 for all licensee and generating companies for their conventional sources of generating station.

J

to time Contents of MYT filing

Thereafter, second control period will be of 3 years. Thereafter, each control period shall be normally for a period of 5 years or such other periods as may be decided by the Commission from time

J

For licensees' range of auxiliary consumption, transmission and / or distribution losses for technical and non-technical losses (T&D losses) for each ensuing years of the control period for the purpose of incentive / penalties. The transmission and / or distribution licensee shall file a trajectory of the loss levels in respect of technical and non-technical losses for each of the ensuing years of the control period, backed up by proper studies to justify the loss levels indicated.

Targets

J J

Targets set for items that are deemed by the Commission as "controllable". Trajectory for specific variables may be stipulated by the Commission where the performance of the applicant is sought to be improved upon through incentives and disincentives. Such variables for which trajectory may be stipulated include, but are not limited to, auxiliary consumption, technical and non-technical losses, station heat rate, oil rate, target availability factor and target plant load factor. Source: Draft West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2006 accessed at www.wberc.net in November 2006

$) !

T E R I Report No. 2006RP23

" = . ( A/. / ) = 0

561 Analysis and compilation of tariff orders -

CE = "

6J

4

) =

0 ! ; H!< -

! / - 6 T

.

( P 0 J

4

0

- &,T

C

H!

4 3 3

3

-

Table 10.36 Additional charges for extra demand

Sl. No. A Period During normal period (6.00 hrs. - 17.00 hrs.) B During peak period (17.00 hrs. - 22.00 hrs.) C During off-peak period (22.00 hrs. - 6.00 hrs. of the following day) Additional Demand Charge 20% extra on the quantum of demand which is in excess of sanctioned contract load 50% extra on the quantum of demand which is in excess of sanctioned contract demand (i) Nothing up to 30% extra demand. (ii) 20% extra on the quantum of demand, which is in excess of 130% of the contract demand.

Source: Tariff Order for WBSEB for FY 2005-06

A

J H! 4 3 4

3

J - 6 T 3 3 I 3

H!

C CE 6J

= = 4 A/. /

) 0 "

T E R I Report No. 2006RP23

562 Analysis and compilation of tariff orders < A/. / 4 N . ! = = . -J. .A = 4 . -J 5 $) - C F 4 , ?F 4 ,,N * ?F = 0 ! -

< A/. / = = B T 6 6 H! 46 T J 0 < H! = H! ! =< A/. / - = J *J$ = 4 3 H! H! 2 ) 2 $ ! 2 0 H! J 0 0 0F C 4

=< J ( = 0 .A =

.A A/. / ,; < 0 H! J

= < A/. / H! ?F

= 4 = H! # H && ?F

, 6, 2F 4 ,,+ H!

,, ?F ,&

&A/ )

Q ) - . ! 0 ) -

G R

* ( 0 L

T E R I Report No. 2006RP23

563 Analysis and compilation of tariff orders

. =

= N (A 4 = J C - I $ - ) I . J A = . 0 = $ 0A % 4 * C 0A 3 & 3 4 & &6 ) = - = L = I / = = = = = CE ;H 4 4 4 )< CE J + 3 = ) ) I N 44 4 I % N 4 , T 6

0A

6

T E R I Report No. 2006RP23

564 Analysis and compilation of tariff orders = 5 N P = -

Table 10.37 Renewable Energy Purchase Obligation for the state

Licensee WBSEB CESC Ltd. The Durgapur Projects Ltd. DPSC Ltd. Purchase obligation 2006-07 1.9% 1.02% 0.72% 0.43% 2007-08 3.8% 2.03% 1.4% 0.95%

Source: WBERC Cogeneration & generation of electricity from Renewable Sources of energy Regulations 2006

Category wise average tariff

- , &+ L 6J J CE 4 &J *4 CE = *J 6 = CE

Table 10.38 Category wise average tariff in FY 2004-05 and FY 2005-06

2003-04 Sales Category Domestic Commercial Public Lighting Agricultural PW works Industrial Railway Traction Bulk Supply Outside supply Export Total 3124 12900 655.2 3818.72 2.10 2.96 3098.88 13549 688.19 3355.67 2.22 2.48 3097.23 14727 938.13 3861.36 3.03 2.62 987.7 45.99 312.04 16.31 3.16 3.55 868.64 72.525 179.17 23.77 2.06 3.28 939.97 96.265 240.83 24.49 2.56 2.54 770 145.55 2986.56 600.04 75.4 46.15 1242.08 257.05 0.98 3.17 4.16 4.28 814.59 140.29 3581.47 602.62 88.06 47.81 1451.25 257.66 1.08 3.41 4.05 4.28 894.57 152.53 4064.82 617.71 134.26 48.64 1657.34 261.76 1.50 3.19 4.08 4.24 MU 3039.47 1123.67 76.41 Revenue Rs. Crore 751.59 448.83 14.07 Average realization Rs./ unit 2.47 3.99 1.84 MU 3128 1158.79 82.39 Rs. Crore 825.82 491.42 14.48 Sales 2004-05 Revenue Average realization Rs./ unit 2.64 4.24 1.76 MU 3502.46 1278.41 83 Rs. Crore 934.53 568.36 15.64 Sales 2005-06 Revenue Average realization Rs./ unit 2.67 4.45 1.88

Source: Annual accounts of WBSEB for FY 2003-04 to 2005-06

-

=

- =

- 4 =

= =

L 4

= L

L

2 - =

= 4

0 =

T E R I Report No. 2006RP23

565 Analysis and compilation of tariff orders 4 * C , ,

6 * &

, CE &J * 9+ ! ) * & 99 * , * * CE , *J 6 + * * 6 * *6 * + CE , 6 6J

Figure 10.21 Tariff trends (Rs./ unit) for select consumer categories

Source: Annual accounts of WBSEB for FY 2003-04 to 2005-06

Cross subsidy

) J C CE 3

Table 10.39 The changes in cost recovery for various consumer categories for FY 2003-04, FY 2004-05 and FY 2005-06 (based on actual data)

Category Average realization Rs./ unit Domestic Commercial Public Lighting Agricultural PW works Industrial Railway Traction Bulk Supply Export Total 2005-06 3.16 2.10 2.96 3.02 3.02 3.02 105% 70% 98% 2.06 2.22 2.48 3.05 3.05 3.05 68% 73% 81% 2.56 3.03 2.62 3.33 3.33 3.33 77% 91% 79% 0.98 3.17 4.16 4.28 3.02 3.02 3.02 3.02 32% 105% 138% 142% 1.08 3.41 4.05 4.28 3.05 3.05 3.05 3.05 35% 112% 133% 140% 1.50 3.19 4.08 4.24 3.33 3.33 3.33 3.33 45% 96% 123% 127% 2.47 3.99 1.84 2003-04 Average Cost Rs./ unit 3.02 3.02 3.02 Rs./ unit 82% 132% 61% AR/AC Average realization Rs./ unit 2.64 4.24 1.76 2004-05 Average Cost Rs./ unit 3.05 3.05 3.05 Rs./ unit 87% 139% 58% AR/AC Average realization Rs./ unit 2.67 4.45 1.88 2005-06 Average Cost Rs./ unit 3.33 3.33 3.33 Rs./ unit 80% 134% 57% AR/AC

0 ) = =

L

4 6J

/ =

L

Source: Actual data from Annual audited accounts of WBSEB for FY 2003-04 and 2004-05 and Provisional Account of FY

T E R I Report No. 2006RP23

566 Analysis and compilation of tariff orders

-

= = 6J

- , &94

4

4L *6T 4 L 4

CE

H = ,&*T = 6J

4 J 4 -

0

= 9T CE

9+T

CE

&J *

= 4 = 4 = C 9 T 99T 4 - = = CE = 0 4

J - 0

-

- = L =

- / - , ,64 *J 6 CE

, T CE &J * ,, ?F 6J

Convergence index (CI)

C , &J * = ) 6J ) CE 6J . CE = J = / ) P J CE &J * CE &J * 4 6J CE A / CE J

-

* &6 & 6 &* &

,6 , 6 CE &J * CE *J 6 CE 6J

Figure 10.22 Trend in convergence index over the years

Source: Annual accounts of WBSEB for FY 2003-04 to 2005-06

T E R I Report No. 2006RP23

567 Analysis and compilation of tariff orders - = CE *J 64 *J 6 CE = = - 0 = T ) 3 = 3 L CE 3 &J * = 9,T CE = ) ) 6J 4 J L = = 6J L J 2 4 4 &T = = CE J CE &J *

Subsidy support from government

CE / = 3 ) , 6, ) D= &, ( D= 0 4 / = 4 & 2 0 = 4 ) D= . = A / / &J * CE *J 64 ) I 4

) 2 CE 4 &J * CE CE 6J / D= 4 ) = *J 6 / /

4

) A ,9 9 ) CE 6J 4

4 / = = J

Revenue gap

) CE / N ) 4 4 *J 64 )

T E R I Report No. 2006RP23

&J *

CE -

*J 6 A 4 ) N 4 I

CE L =

J &4

4 , T = I -

3 CE

568 Analysis and compilation of tariff orders / 4 9+ ) 0 ) = CE J & I 4

4 = CE I &J * = A/. / = CE

&

-

) CE *J 64

*J 64

= =

-

L -

"

Table 10.40 Particulars of amounts approved by WBERC to be recovered from the Board

Sl. No.

(a) Particulars Revenue requirements for 2002-03 Saleable units during 2002-03 Tariff realized / realizable on average cost of supply of 270 paise / Kwh (9839.56 MU x 270 paise / Kwh) (i) Net balance realisable (b) Revenue requirements for 2003-04 Saleable units during 2003-04 Tariff realized / realizable on average cost of supply of 320 paise / Kwh including 52 paise / Kwh of interim Tariff excluding on certain supplies (10550 MU x 320 paise / Kwh) (ii) Net balance realisable (c) (d) (e) (f) Shortfall of 2002-03 and 2003-04 to be recovered during 2004-05(i+ii) Amount withheld Balance realizable Revenue requirements for 2004-05 Total revenue recoverable from own consumers in 2004-05 Saleable units to own consumers during 2004-05 Average Tariff Rs.229.97 Crore Rs.795.97 Crore Rs.372.98 Crore Rs.422.99 Crore Rs.2557.26 Crore Rs.2980.25 Crore 9294.57 MU 320.60 paise / Kwh Rs.3376 Crore Rs.3222.69 Crore 9839.56 MU Rs.2656.68 Crore Rs.566.01 Crore Rs.3605.97 Crore 10550 MU

Source: Combined Tariff Order for WBSEB for FY 2002-03, 2003-04 and 2004-05

CE 6J *+ 6 ) / ,6 - 0 0 = &)

4

/ =

% I &* ) &, *6 ) &&&, ,, ) L 4 ) . 4

3 3 0 , & &+ ) = % % , / ) 9 , ) P 4 =

-

,,, & ) % = -

4

J 3

T E R I Report No. 2006RP23

569 Analysis and compilation of tariff orders &+ ,+ ) & N 0A =

Electricity duty

! / CE - , *," &J *4 CE *J 6 CE 6J 4 =

Table 10.41 Electricity Duty collected by WBSEB over the years (Source: Information provided by WBERC in December 2006)

Year FY 2003-04 FY 2004-05 FY 2005-06 Electricity Duty Collected ( Rs Crore) 130.9 157.9 197.5

Source: Written information provided by WBERC in December 2006

Governance Public participation

0 = ) 4 ) 0 / = = A/. /4 = -

Table 10.42 Level of public participation

Year 2003-04 2004-05 2005-06 Time given for filing comments /objections 30 days 30 days 30 days No. of written objections 53 77 22 No. of participants 16 18 22

Source: Compiled from tariff orders of WBSEB for FY 2003-04 to FY 2005-06

%

-% 4

= -

4

CE )

&J *

CE

4 *J 64 A/. /P

=

*J 64 , ,+ CE 6J 4

-

0 L CE &J * CE -%

Timeliness of tariff orders

L )

T E R I Report No. 2006RP23

= -%

4

570 Analysis and compilation of tariff orders - = A/. / ) CE &J * *J 64 ( ) = *4 *& - A/ 3 = = CE / ) ) . ) / = ) 4 * = 4 = 6J 4 ) I * 2 = 4 / & ; < A / 4 &4 )4 = ) ) I = J CE 0 4 = *J 6 . CE CE &J * , J, 4 J &4 CE &

/ J &4 CE 4 4(

/ = 4! ,6J&, ) 4

- , *& A/

Table 10.43 Timeliness of tariff orders

Year Date of filing Date of acceptance of petition 2003-04 2004-05 2005-06 30-Dec-03 14-Dec-04 28-Jan-04 22-Dec-04 9-Jun-04* 30-Mar-05 29 days 8 days 121 days 96 days of petition Date of Issuance of Order Days from filing to acceptance Days from acceptance to issuance

*Combined Tariff Order issued by WBERC for FY 2002-03, 2003-04 and 2004-05 Source: Tariff Orders for WBSEB, FY 2003-04 to 2005-06

Consumer advocacy and redressal mechanism

A/ ) ) C H R Q D D = & . 4 A/. / P = ! ) & &J ( '$

D = ) != ( N .

T E R I Report No. 2006RP23

571 Analysis and compilation of tariff orders ; < ) J, J, J . D = C ! H D = ; M < ;M H< D J 4 J, D = K ;) H F < ;$ H< D = / = J& $ = C ) ) D = J ; < 2 H M ( '< D = ! ) H ( '# H ;)D H<

=

= = 4I H H 4 D = ; 3< ) 4

4=

D = H 4 H 0

D = H D = =

= = H = ) H -

; < 4 N

= H -J

= D = N H N N

L I . = &9

) = >

D =

*4

H &,

H = -

T E R I Report No. 2006RP23

572 Analysis and compilation of tariff orders

Open access

) N H < · " ) J · = = o ; A <@

Z

> J 6 -

* ; =

>

<=

" = -

<H

(sent Out) if any per unit 100-T&D loss in percentage as allocable for the relevant Open Access case + Wheeling charges as applicable to the relevant Open Access case

*Where the power purchase cost is in single part the separation of fixed cost and variable cost will be as per the decision of the commission.

J 4

)

$ - -

H *4

!

-

N .

Table 10.44 Schedule of phasing of open access

Phase Phase I Phase II Phase III Phase IV Category of Consumers Power from Co-generation and Nonconventional source of energy Consumers with connected load of 10MW and exceeding 10MW in single premises Consumers with connected load of 5MW and exceeding 5MW in single premises Consumers with connected load exceeding 1MW in single premises Time-frame from which Open Access is/ has been allowed 1st April 2006 1st April 2007 1st April 2008 1st January 2009

Source: WBERC Phasing of open access in distribution/ sale Regulations, June 2004

4 . $ 4

* 4 2 ! 5)H /

= &

4

) =L 5

0

T E R I Report No. 2006RP23

573 Analysis and compilation of tariff orders

Appeals against orders

@ ) . CE 4 4 = 3 ; 6J 4 = ;6< = ; < = A/ ) 2 ) ? 0 4 < = ) ;+< = 3 = . = ;66<

Staffing

) ) H ;C H ! H ) 0 = = - , *6 = 3 ) 4H <4 H ! ! ) = ;C ; J 4 ; <4 H <4 H ! < > ; H . "H = <4 4

( A/

= 4 )4

Table 10.45 Total sanctioned officers/staff

Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Name of the Post Secretary Advisor (Engineering) Advisor (Finance) Advisor (Law) Jt. Advisor (Engineering) Jt. Advisor (Finance) Director (Engineering) Director (Finance) Director (Law) Dy. Director (Engineering) Dy. Director (Finance) Document Officer Assistant Director(Accounts)/Accounts Officer Asstt. Director (System) Assistant Director (Administration) Public Relations Officer Private Secretary Personal Assistant Accountant Senior Assistant No. of posts 1 1 1 1 2 1 2 1 1 2 2 1 1 1 1 1 3 3 1 7

T E R I Report No. 2006RP23

574 Analysis and compilation of tariff orders

21. 22. Assistant Group D officials 15 8

Source: Information provided by WBERC in December 2006

Directives issued by WBERC and their compliance

= A/. / CE CE A/. / = J 6J 4 - , * A/ ) = = -

Table 10.46 Status of important directives given by WBERC (based on the compliance report submitted by WBSEB to WBERC)

No. 1. Summary of directives Implementation of 100% metered supply at the Consumer's end Status based on WBSEB's reply The Board has submitted a detailed plan for implementation of 100% metered supply at the consumer's end to the Commission on 30/6/2005.

a) HV & EHV Consumers

All consumers receiving HV & EHV supply are provided with proper metering at their premises.

b) L & MV Consumers i) Irrigation consumers receiving supply for STW or submersible pumps

WBSEB has taken a massive programme for TOD metering arrangement to existing 98427 nos. STWs and Sub-mersible pump sets, for which WBSEB has undertaken a programme for installation of energy meters and allied works on `Turn-key' basis. The entire work is expected to be completed by December, 2007.

ii) Lokdeep / Kutirjyoti Consumers

WBSEB is in the process of converting un-metered Lokdeep / Kutirjyoti connection to metered supply in phased manner. Out of 69770 nos. Lokdeep / Kutirjyoti consumers receiving un-metered supply, metering for 48656 nos. consumers will be completed by March, 2006 and metering installation of balance 21114 nos. consumers will be completed by September, 2006.

iii) Domestic Consumers connected with MCB

Rural Domestic consumers who were connected with MCB are being converted into metered connection in phases. As on 30/08/2005, 415 nos. of consumers connected with MCB are lying un-metered. Board has taken a programme to complete metering to these consumer's premises within 31/03/2006. 2. Introduction of TOD Tariff to Agricultural Consumers on an optional basis Till dedicated feeders for effecting supply to agricultural consumers for irrigation purposes are put in place, supply to such consumers who have already received metered supply and those who currently receive un-metered supply, but may have meters installed in course of 2005-06, may be given an option to Board through Press Notification dated 30/08/2005 through leading dailies intimated this direction of the Commission. But till date, no option is reported to have been received from Agricultural Consumers opting for TOD Tariff. Till such time metering arrangement is completed, WBSEB will provide TOD meters to those Agricultural consumers opting to receive supply on TOD Tariff for which they are to construct meter rooms as per WBSEB's Specification. Existing meter rent applicable for metered Agricultural connections will be realized in such metered connections, till such time rent applicable for TOD meter for Agricultural connection is approved by the Commission. After implementation of 100% metering for STW & Sub-mersible Pump Sets, WBSEB may propose the Commission for implementation of TOD Tariff as mandatory for Agricultural consumers.

T E R I Report No. 2006RP23

575 Analysis and compilation of tariff orders

No. Summary of directives receive to receive supply on TOD basis. 3. Introduction of TOD tariff for HT and EHT Commercial and Public Utility Services on optional basis It is obvious that Commercial and Public Utility Services, receiving supply at HV & EHV, not consuming electricity during off-peak period, but consuming during peak period, will not be interested to opt for TOD Tariff. At present, the following HT & EHT Commercial / Public Utility Services are receiving power supply from WBSEB under TOD tariff. Sl. No. 1. 2. 4. WBSEB shall submit a scheme of introducing a system of Pre-paid Meters to the Commission within 6 months. This scheme should form a part of the next tariff petition 5. WBSEB shall put in place accredited independent thirdparty meter testing arrangement in all the districts under its licensed area and prepare ground for allowing the consumers to purchase their own meters duly tested and certified by the third party testing agency 6. Introduction of ABT in the State Sector The said report stand submitted to the Hon'ble Commission on 10/08/2005, a copy of the said report is enclosed. WBSEB has proposed to introduce ABT in the State Sector in respect of the following bulk exchanges : i. Purchase of power by WBSEB from all the four number Thermal Power Stations of WBPDCL. ii. Purchase of power by CESC from WBSEB. iii. Purchase of power by WBSEB from DPL. iv. EHV Bulk Consumers seeking Open Access. In order to facilitate implementation of ABT in the State Sector, up-gradation of SLDC is essential. WBSEB has already arranged for training of existing operational Engineers in ERLDC. Revision of the existing Staff set up of SLDC is also under consideration. A proposal has also been initiated to convene a meeting where all Generators, STU, DISCOMS may participate and discuss the issue so that a time frame for replacement of CTs, PTs, breakers (if required) and commissioning of SEMs may be fixed up to facilitate implementation of ABT. 7. Purchase of Power from Renewable and Nonconventional source of Energy Presently, WBSEB has been purchasing power generated by WBREDA at Frejergunj through Wind Mill. In addition, recently a small Hydel Project, namely, Mongpu-Kalikhola Project having installed capacity of 3x1MW has been put into operation during the year 2004Name of the Consumer M/s. CCAP Limited Kariwala Industries Limited Applicable Tariff E(ct) E(ct) Contract Demand (KVA) 350 315 Status based on WBSEB's reply

In this respect, a scheme for introducing a system of pre-paid metering stands submitted before the Hon'ble Commission on 20/07/2005, copy of which is enclosed. Through the said report Board sought for kind clearance of the Hon'ble Commission towards implementation of the Pilot Project for Pre-paid Energy Meter at New Town area through New Town Electric Supply Company Limited, a franchisee of WBSEB. The Pilot Project for installation of Pre-paid meters is presently under execution by the said NTESC. A detailed report containing the procedural steps towards implementation of the project is being submitted along with the Tariff Proposal for the year 2006-07. Installation of accurate meter at consumer's premises is essential in order to record actual consumption, thereby reducing the ATC Loss of the licensee. As such, the meters, which are proposed to be purchased by the consumers, should be tested at the appropriate laboratory having proven reputation. In the Electricity Act, 1910 (now repealed) the licensees and Electrical Inspector were empowered for testing of meters. However, as such type of independent third party meter testing arrangement in all the districts do not come into operation, there may not be any objection in case the meter purchased by the consumers are tested by the National Test House / Electrical Inspector.

T E R I Report No. 2006RP23

576 Analysis and compilation of tariff orders

No. Summary of directives Status based on WBSEB's reply 05. Now, a number of entrepreneurs have come up with the proposal for development of small hydel projects in the district of Darjeeling and they proposed to sale the power generated from those projects direct to WBSEB. WBSEB has already issued in-principle clearance for purchase of such green power subject to finalisation of the evacuation system, Terms & Conditions and the Tariff that may be fixed by the Hon'ble Commission. Besides, a number of small Bio-mass based plant have also proposed to set up their unit in the different parts of the State. WBSEB is in a position to issue such in-principle clearance to those entrepreneurs in case they approach WBSEB to sale entire power generated from their power plant. Besides, Board has already executed Agreement and finalized the evacuation scheme for purchase of power generated at Lodhama, a small hydel project being constructed by M/s. Nippon Power Limited in the district of Darjeeling. 8. Periodic Energy Audits In this context, the following activities have been undertaken by WBSEB: 1. WBSEB approached its consumers as well as approached to Govt. Buildings for conducting energy audit taking into account of the Energy Conservation Act, 2001 during the period 2004-05. 2. WBSEB being designated agency for implementation of the Energy Conservation Act, 2001 requested towards awareness of conducting energy audit to different designated consumers under different licensees working within the State of West Bengal. 3. A few designated consumers have already submitted energy audit report and the same are under scrutiny. The following programmes have been undertaken by WBSEB : (a) Being the designated agency towards implementation of the Energy Conservation Act, 2001, WBSEB have already constituted a State Level Energy Conservation Committee taking one member from the licensees working within the State of West Bengal while WBSEB have 5 nos. of member. (b) In addition to above, WBSEB have constituted an In-house Committee taking one representative from the members of different associations as well as Unions while Chairman of the Committee is in the rank of Addl. Chief Engineer under Energy Management Cell, WBSEB. (c) State Level Energy Conservation Committee have already made accredited energy auditors those have office address in West Bengal in order to assess their observations towards conducting energy audit. (d) Energy Efficient Tubes were installed at WBSEB's Kona 33/11 KV Sub-station and saving to the extent of .042 MU is observed per annum while Rs.1.33 lakh is being saved per year. Moreover, actions are being taken towards installation of energy efficient tubes in switchyard lighting in 33/11 KV Sub-stations at Tamluk, Purulia & Birbhum. 9. Awareness Programme The Human Resource Development Department has designed the Training Modules and the Training Calender for the year 2005-06 covering all the activities of the Board to train employees right from the grass root level to the management level. Special emphasis has been given to train the technical and non-technical personnel for providing best Customer Services and Customer Satisfaction thereby reducing Consumer Grievances. To apprise the employees regarding the reforms programme undertaken by WBSEB, a course on `Reforms in Power Utilities' has been included. Of course reform requires changes of `Mind Set' of all concerned. As such, earlier, an introduction on `The Change in Mind Set' to adopt with the change in Power Sector has been introduced in all training programmes with reference to the Electricity Act, 2003. Special emphasis is being given in all the training courses to educate the employees about the Regulations framed by the Hon'ble

T E R I Report No. 2006RP23

577 Analysis and compilation of tariff orders

No. Summary of directives Status based on WBSEB's reply Commission.

10.

Plan for reduction of T&D Loss

Board has taken up 100% metering scheme and completed metering at the Sub-Station up to 11 KV feeder. Distribution Transformer (DTR) Metering has been taken up by the Board in phased manner. In the first phase Tender Notice has been floated for installation of all the DTR Metering in the districts of North 24-Parganas and Hooghly. Board has already taken up a massive programme for installation of TOD Meters in respect of all Agricultural consumers (STW and Sub-mersible Pump Sets) on Turnkey basis. For the purpose of reducing the overall ATC Loss, the activities of Security and Loss Prevention Wing (S&LP) have been strengthened and decentralised up to circle levels. Besides Corporate Wing, seventeen units at circle level have been created and started functioning w.e.f. August, 2004. In view of completion of 100% metering at sub-station up to 11KV, installation of proposed DTR Metering in phases and strengthening of the activities of Security and loss prevention (S&LP) wing, the ATC loss will ultimately be reduced to the accepted level. Board has introduced High Voltage Distribution Supply (HVDS) system primarily for power supply to irrigation/agricultural consumers directly from distribution sub-station through drawal of L.T. P.V.C. cable. For this purpose distribution sub-stations are being considered of capacity 10 KVA, 11/0.4 KV for every two STW consumers. This concept is also being followed in the massive rural electrification programme under implementation. By considering such system technical as well as commercial loss will be substantially reduced. In the first phase, implementation of GIS in WBSEB has been taken up under 63 Nos. Group Electric Supply. In the second phase, survey work for another 25 nos. Group Electric supply is scheduled to be taken up. Once this network documentation is completed the energy loss will be computed through application software CYMDIST, which already available in WBSEB. Voltage gradient will also be found out through this system. On the basis of load flow study through CYMDIST software 33KV & 11KV network will be planned properly to reduce technical loss. Board has already taken up R&M Work in the distribution wing under APDRP Scheme in different circles and district towns. APDRP Incentive for reduction of losses over the years received amounting to Rs.73.00 Crore for 2002-03 and Rs.303.00 Crore for 2003-04.

Source: Tariff Order for WBSEB for FY 2005-06 and Compliance of Directives submitted by WBSEB along with their tariff petition for FY 2006-07

Power sector rating

( *J 6 = CE 6J $ 4D 4A / CE &J *4 CE

Table 10.47 West Bengal power sector rating

FY 2003-04 Rank Score 13 35.88 FY 2004-05 8 44.60 FY 2005-06 5 46.24

Source: CRISIL-ICRA Power Sector Rating Report for 2003 to 2005

T E R I Report No. 2006RP23

578 Analysis and compilation of tariff orders

A CE ,

/ 6J D .; 6 &T J

= 0 " CE G ). *J 6 = *J 6 F && &T = 4 = 4 4 & =

,&

6

*J 6 G ! & ) &J *<

&

.

* 6

. ! = ( = 0 = = = % -

4 -

Regulations issued

- , *+ A/ L )4 = -

Table 10.48 List of final regulations notified by WBERC

S. No. 1. 2. Regulations West Bengal Electricity Regulatory Commission (Phasing For Open Access in Distribution / Sale of Electricity) Regulations, 2006. West Bengal Electricity Regulatory Commission (Number, Nature and Categories of Other Employees and Salaries, Allowances and Other Conditions of Service of Secretary, Other Officers and Employees) Regulations, 2006. 3. 4. West Bengal Electricity Regulatory Commission (Cogeneration & generation of electricity from Renewable Sources of energy) Regulations, 2006 West Bengal Electricity Regulatory Commission (Guidelines for Establishment of Forum for Redressal of Grievances of Consumers and Time and Manner of Dealing with such Grievances by the Ombudsman) Regulations, 2006 5. 6. 7. West Bengal Electricity Regulatory Commission (West Bengal Electricity Grid Code) Regulations, 2006 West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005 West Bengal Electricity Regulatory Commission (Standards of Performance of Distribution Licensees Relating to Consumer Services) Regulations, 2005 18th October 2005 21st November 2005 12th January 2006 17th January 2006 4th May 2006 4th May 2006

Date

20th July 2006

T E R I Report No. 2006RP23

579 Analysis and compilation of tariff orders

S. No. 8. 9. 10. Regulations West Bengal Electricity Regulatory Commission (Miscellaneous Provisions) Regulation, 2005 West Bengal Electricity Regulatory Commission (Recovery of Expenditure for Providing New Connections) Regulation 2005 West Bengal Electricity Regulatory Commission (Terms and Conditions for Open Access ­ Schedule of Charges, Fees & Formats for Open Access) Regulations, 2005 11. 12. 13. 14. 15. 16. 17. West Bengal Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2005 West Bengal Electricity Regulatory Commission (Conduct of Business) First Amendment Regulations, 2004 West Bengal Electricity Regulatory Commission (Tariff) Regulations, 2003 West Bengal Electricity Regulatory Commission (Licensing and Conditions of Licence) Regulations, 2004 West Bengal Electricity Regulatory Commission (Standards of Performance of Licensees Relating to Consumer Services) Regulation, 2003 West Bengal Electricity Regulatory Commission (Phasing For Open Access in Distribution / Sale of Electricity) Regulation, 2004 West Bengal Electricity Regulatory Commission (Number, Nature and Categories of Other Employees and Salaries, Allowances and Other Conditions of Service of Secretary, Other Officers and Employees) Regulations, 2004 18. 19. 20. 21. West Bengal Electricity Regulatory Commission (Electricity Supply Code) Regulation, 2004 West Bengal Electricity Regulatory Commission (Conduct of Business) Regulations, 2003 West Bengal Electricity Regulatory Commission (Miscellaneous Provisions) Regulation, 2003 West Bengal Electricity Regulatory Commission (Guidelines for 23rd September 2003 Establishment of Forum for Redressal of Grievances of Consumer and Ombudsman) Regulation, 2003 22. This is a Notification constituting West Bengal State Advisory Committee in terms of section 87(1) of the Electricity Act, 2003 8th August 2003 12th November 2003 12th November 2003 5th February 2004 23rd March 2004 9th June 2004 9th June 2004 9th June 2004 9th June 2004 12th October 2004 30th June 2005 21st September 2005 28th September 2005

Date

18th October 2005

Status of annual accounts

A/. / = CE *J 6 = CE 6J

Conclusion

) A A / / ,999

T E R I Report No. 2006RP23

580 Analysis and compilation of tariff orders A/. / N = L 3 H / / ) / 3 , N 0A 6J C 4 3 / 9,T CE = 9+T 9T 6 ) = ) & CE ! CE = ! ) .= - A/ = ! 4 = 0 4 - 6 T J T E R I Report No. 2006RP23

= 4

-

) 3 4

4

0

$ = A / & &N 0A J = A T CE &J * CE

=

= CE &J *

L

4

6J

4 =

N / CE % &J * *J

/ I

CE

J

*J 6 6J / J 4

/ ) = CE 6J 4 CE J = 0

=

= ) ( ; H!< CE J = 6J

04 / P 0 =

581 Analysis and compilation of tariff orders CE % 0 J + ) 6 (A & H % ) 4 = 4 J = - 4 4 3 ; G ! < 4 - A/ ) 4 CE

J

(E

= 4

-

-

N

4

) -

) 4 =

@ = A/ = &J )

-

-

4 A/. / P = 4 4-

= = 4= ) H > H = A

*4 H = &9 4 * ; J < 64 ) & / 4 > 4 ) > H

&,

=

N

* =L 5 C 0 ) .

=

4 2 ! 5)H 4 -

T E R I Report No. 2006RP23

582 Analysis and compilation of tariff orders = ; > 0 0 I J = / -J = C G ! ,J = 4 / &T CE = = J 4 + T 4 T = & T CE 99T 2 I , = T ,, 0F = / 4 4 / <4 4 $

T E R I Report No. 2006RP23

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