HESCOM Tariff Policy AR 2016
HESCOM Tariff Policy AR 2016
HESCOM Tariff Policy AR 2016
HESCOM
ANNUAL PERFORMANCE REVIEW FOR FY15
&
ANNUAL REVENUE REQUIREMENT FOR FY17-19
&
REVISION OF RETAIL SUPPLY
TARIFF FOR FY17
30th March 2016
6th and 7th Floor, Mahalaxmi Chambers
9/2, M.G. Road, Bengaluru-560 001
Phone: 080-25320213 / 25320214
Fax : 080-25320338
Website: www.karnataka.gov.in/kerc - E-mail: kerc-ka@nic.in
CONTENTS
CHAPTER
1
1.0
1.1
1.2
2
2.0
2.1
2.2
2.3
3
3.1
3.2
4
4.0
4.1
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.2.9
4.2.10
4.2.11
4.2.12
4.2.13
4.2.14
4.2.15
4.2.16
4.2.17
4.2.18
4.3
4.4
5.0
Introduction
Hubli Electricity Supply Company Ltd.,
HESCOM at a Glance
Number of Consumers, Sales in MU and Revenue
detail of HESCOM
Summary of Filing and Tariff Determination
Process
Background for Current Filing
Preliminary Observations of the Commission
Public Hearing Process
Consultation with the Advisory Committee of the
Commission
Public Consultation Suggestions / Objections
and Replies
List of Persons who filed written objections
List of persons who made oral submission in
public hearing
Annual Performance Review for FY15
Page No.
3
3
5
6
7
7
7
8
9
10
10
11
12
12
12
13
15
20
22
24
25
29
29
33
38
39
40
40
41
42
42
43
43
44
44
45
46
ii
5.1
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
5.2.8
5.2.9
5.2.10
5.2.11
5.2.12
5.2.13
5.2.14
5.2.15
5.2.16
5.2.17
5.3
5.4
5.5
5.6
5.7
6
6.0
6.1
6.2
6.3
6.4
6.5
6.6
6.6.1
6.6.2
6.6.3
6.6.4
6.6.5
6.6.6
HESCOMs Filing
Annual Performance Review for FY15 & FY16
Annual Revenue Requirement for FY17-19
Capital Investments for FY17-19
Sales Forecast for FY17-19
Distribution Losses for FY17-19
Power Purchase for FY17-19
Sources of Power
HESCOMs
Power
Purchase
Cost
and
Transmission Charges
RPO Target for FY17
O & M Expenses for FY17-19
Depreciation
Interest on Capital Loans
Interest on Working Capital
Interest on Consumer Security Deposit
Interest on belated payment of power purchase
cost
Other Debits
Return on Equity
Other Income
Fund towards Consumer Relations / Consumer
Education
Treatment of Regulatory Asset
Abstract of ARR for FY16
Segregation of ARR into ARR for Distribution
Business and ARR for Retail Supply Business
Gap in Revenue for FY17
Application for Additional Revenue Requirement
for FY17
Determination of Tariff for FY17
HESCOMs Proposal and Commission Analysis for
FY17
Tariff Application
Statutory Provisions Guiding Determination of
Tariff
Consideration for Tariff setting
New Tariff Proposals by HESCOM
Revenue of Existing Tariff and Deficit for FY17
Other Issues
Tariff for Green Power
Determination of Wheeling Charges
Wheeling within HESCOM area
Wheeling of Energy using Transmission Network
or network of more than one licensee
Charges for Wheeling of energy by RE sources
(non REC route) to Consumers in the State
Charges for Wheeling Energy by RE sources
Wheeling energy from the State to a consumer /
other outside the State and for those opting for
47
47
47
53
66
67
69
73
77
78
82
84
87
88
89
90
90
92
93
93
94
95
97
98
100
100
100
100
101
102
104
136
136
136
137
139
140
140
iii
6.7
6.8
6.9
6.10
6.11
140
145
145
146
147
148
185
iv
LIST OF TABLES
Table
No.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
Content
Revised ARR for FY15 HESCOMs Submission
Financial Performance of HESCOM for FY15
HESCOMs Accumulated Profit / Losses
Approved and Actual Sales - FY15
Incentive for loss reduction for FY15
HESCOMs Power Purchase for FY15
RPO Compliance as submitted by HESCOM for FY15
O & M Expenses for FY15 HESCOMs Submission
Approved O & M Expenses as per Tariff Order dated
12.05.2014
O & M Expenses of HESCOM as per Annual Audited
Accounts for FY15
Allowable O & M expenses for FY15
Capital Expenditure for FY15
Approved Vs Actual Capital Investment
Gist of Prudence check findings for FY15
Summary of Works having cost overrun
Summary of Works having Time overrun
Details of Amounts disallowed in APR FY15
Allowable Interest on Loans FY15
Allowable Interest on Working Capital for FY15
Allowable Interest on Finance Charges
Allowable Other Debits
Allowable Return on Equity
Approved Revised ARR for FY15 as per APR
Proposed ARR for FY17-19
Proposed Capex for the control period
Category wise Approved number of Installations
Category wise approved energy sales
Projected Distribution Losses FY17-19 HESCOMs
Submission
Approved & Actual Distribution Losses FY10 to FY16
Approved Distribution Losses for FY17-19
Requirement of Electricity as filed by Licensees
Energy Requirement as filed by HESCOM
Power Purchase requirement approved for the
Control Period FY17 to FY19
Consolidated Power Purchases requirement for FY17
Consolidated Power Purchases requirement for FY18
Consolidated Power Purchases requirement for FY19
Abstract of Power Purchase allowed for ESCOMs for
the control period FY17 to FY19
Power Purchase Cost of HESCOM for FY17
Page
No.
12
14
14
20
21
22
24
25
26
26
28
30
33
34
35
35
36
38
40
41
41
43
44
46
49
64
65
66
66
67
68
68
69
70
70
71
73
75
5.16
5.17
5.18
5.19
5.20
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.28
5.29
5.30
5.31
5.32
5.33
5.34
5.35
5.36
5.37
5.38
6.1
6.2
76
76
79
81
82
83
84
85
86
87
88
88
89
90
91
92
92
93
95
96
96
97
97
105
137
vi
LIST OF ANNEXURES
SL.NO.
DETAILS OF ANNEXURES
II
III
IV
vii
Page
No.
206
212
218
219
ABBREVIATIONS
AAD
AEH
ABT
A&G
ARR
ATE
BBMP
BDA
BESCOM
BMP
BST
BWSSB
CAPEX
CCS
CERC
CEA
CESC
CPI
CWIP
DA
DCB
DPR
EA
EC
ERC
ESAAR
ESCOMs
FA
FKCCI
FR
FoR
FY
GESCOM
GFA
GoI
GoK
GRIDCO
HESCOM
HP
HRIS
ICAI
IFC
IW
viii
IP SETS
KASSIA
KEB
KER Act
KERC
KM/Km
KPCL
KPTCL
KV
KVA
KW
KWH
LDC
MAT
MD
MESCOM
MFA
MIS
MoP
MU
MVA
MW
MYT
NFA
NLC
NCP
NTP
O&M
P&L
PLR
PPA
PRDC
REL
R&M
ROE
ROR
ROW
RPO
SBI
SCADA
SERCs
SLDC
SRLDC
STU
TAC
TCC
ix
T&D
TCs
TR
VVNL
WPI
WC
Present:
Chairman
Member
Member
O R D E R
xi
xii
CHAPTER 1
INTRODUCTION
1.0
1. Bagalkot
2. Belgaum
3. Bijapur
4. Dharwad
5. Gadag
6. Haveri
7. Uttara Kannada
xiii
O&M Zones
O&M Circles
O&M Divisions
Hubli Urban
Hubli Rural
Hubli Circle
Dharwad Urban
Dharwad Rural
Hubli Zone
Gadag
Haveri
Haveri Circle
Ranebennur
Sirsi
Sirsi Circle
Karwar
Belgaum Urban
Belgaum Rural
Belgaum Circle
Bailahongal
Ghataprabha
Chikkodi
Chikkodi Circle
BelgaumZone
Athani
Raibagh
Bijapur
Bijapur Circle
Indi
Jamakandi
Bagalkot
Bagalkot Circle
Basavana Bagewadi
Mudhol
xiv
The O & M divisions of HESCOM are further divided into seventy eight
sub-divisions. These sub-divisions are further divided into 255 O & M
section offices.
Section offices are the base level offices looking into the operation
and maintenance of the distribution system in order to provide reliable
and quality power supply to HESCOMs consumers.
1.1
HESCOM at a glance:
Particulars
Area
Districts
Taluks
Population
Consumers
as
on
31.01.2016
Energy Sales for FY15
Zone
DTCs as on 31.01.2016
Assets as on 31.03.2015
HT lines as on 31.01.2016
LT lines as on 31.01.2016
Total employees strength:
Sanctioned
Working
Revenue Demand
Revenue Collection
Statistics
Sq. km.
Nos.
Nos.
Lakhs
Lakhs
54513
7
49
166
42.16
MU
Nos.
Nos.
Rs. in Crores
Ckt. kms
Ckt. kms
9208.39
2
144482
6431.24
65383
114051
Nos.
Nos.
Rs. in Crores
Rs. in Crores
15938
7868
4851.58
4179.27
xv
1.2
CATEGORY
Domestic
Commercial
Industrial
Agriculture
Others
No. of
Installation
2993380
303582
97442
603172
92476
HESCOM
Sales in
MU
1407.28
485.66
1241.88
5422.17
651.4
Revenue in
Rs.Crs.
606.86
391.11
786.26
2567.51
553.51
4090052
9208.39
4905.25
Total
HESCOM has filed its application for approval of Annual Performance Review
for FY15, Annual Revenue Requirement (ARR) for FY17-19 and revision of
Retail Supply Tariff for FY17.
HESCOMs application, the objections / views of stakeholders thereon and the
Commissions decisions on the approval of Annual Performance Review for
FY15, ARR for FY17-19 and revision of Retail Supply Tariff for FY17 are
discussed in detail in the subsequent Chapters of this Order.
xvi
CHAPTER 2
SUMMARY OF FILING & TARIFF DETERMINATION PROCESS
2.0
2.1
Capital Expenditure
Sales Forecast
Assessment of IP set consumption
Power Purchase
Issues pertaining to items of revenue and expenditure
Other new proposals
Compliance to Directives
In response HESCOM has furnished its replies on 11th January, 2016. The
replies furnished by HESCOM are considered in the respective Chapters of
this Order. Further, the Commission also held a validation meeting to discuss
the proposals of HESCOM on 10th February, 2016.
xvii
2.2
HESCOM
has
published
the
same
in
the
following
newspapers:
Language
English
Kannada
Date of Publication
17/1/2016
&
18/1/2016
2.3
xviii
The Commission has also discussed the proposals of KPTCL and all
ESCOMs in the State Advisory Committee meeting held on 10th March, 2016.
During the meeting the following important issues were also discussed:
xix
CHAPTER 3
PUBLIC CONSULTATION
SUGGESTIONS / OBJECTIONS & REPLIES
3.1
Applicatio
n No.
HB-01
HB-02
HA-01
HA-02
HA-03
HA-04
HA-05
8
9
HA-06
HA-07
10
HA-08
11
AE-01
xx
12
3.2
AE-02
List of the persons, who made oral submissions during the Public
Hearing, held on 03.03.2016.
SL.No.
Names & Addresses of Objectors
1
Sri G.G. Hedge Kadekodi for FKCCI, North Kanara District
Chamber Sirsi, Consumer Protection Society, Sirsi & Karnataka
Electricity Governance Network
2
Sri R.G. Joshi, Kumta
3
Sri Prabhakar Nagarmunchi, KASSIA, Bangalore.
4
Sri Aravind K Pai, Kumta
5
Sri S. K. Hedge, Kumta
6
Sri Siddeshwar Kammar & Sri A.S. Kulkarni, Karnataka Chamber
of Commerce, Hubballi.
7
Sri Pramod Shanbhag, Shreyas Papers, Dandeli
8
Sri Basavaraj Ingalagi, Belagavu (Hosur Village).
9
Sri R.K. Rangrej, Gadag District Chamber of Commerce.
10
Sri Chethan Jain, I Ex.
11
Sri A.A. Thargar, Dharwad.
3.3
xxi
CHAPTER 4
ANNUAL PERFORMANCE REVIEW FOR FY15
4.0
preliminary
observations.
The
HESCOM,
in
its
letter
dated
HESCOMs Submission:
The HESCOM has submitted its proposals for revision of ARR for FY15
based on the Audited Accounts as follows:
TABLE 4.1
Revised ARR for FY15 HESCOMs Submission
Sl.
No
1
2
3
4
5
Particulars
As Filed
11513.19
11059.81
16.74%
xxii
3849.77
5358.62
9208.39
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2292.12
2559.46
4851.58
3330.10
445.54
9.94
3785.58
580.95
99.05
180.75
18.43
44.64
2.47
0.00
246.29
(0.78)
0.00
0.00
0.00
(8.08)
4719.17
xxiii
TABLE 4.2
Financial Performance of HESCOM for FY15
Amount in Rs.Crores
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Particulars
FY15
Receipts
Revenue from Tariff and misc.charges
Tariff Subsidy
Total Revenue
Expenditure
Power Purchase Cost
Transmission charges of KPTCL
SLDC Charges
Power Purchase Cost including cost of transmission
2297.20
2554.38
4851.58
3330.10
445.54
9.94
3785.10
580.96
99.05
O&M Expenses
Depreciation
Interest & Finance charges
Interest on Loans
Interest on Working capital
Interest on consumer deposits
Interest on belated payment of power purchase cost
Other Interest & Finance charges
116.26
82.91
44.64
102.15
2.47
348.43
(0.78)
34.66
26.58
4821.32
Particulars
Rs. Crs
Accumulated losses as at the end of FY10
(659.08)
(64.70)
39.75
40.69
xxiv
(576.25)
30.26
(1189.33)
As seen from the above table, the accumulated losses are Rs.1189.33
Crores as at the end of FY15.
Commissions analysis and decisions:
The Annual Performance Review for FY15 has been taken up duly
considering the actual expenditure as per the Audited Accounts
against the expenditure approved by the Commission in its Tariff Order
dated 12th May, 2014. The item wise review of expenditure and the
decisions of the Commission thereon are as discussed in the following
paragraphs:
4.2.1
xxv
The actual share of sales to categories other than BJ/KJ and IP sets is
41.81% as against the estimated share of 46.00% resulting in 4.09
percentage point reduction in share to these categories, while the
actual share of sales to BJ/KJ and IP sets has increased by the same
percentage point.
The Commission notes that the major category contributing to the
reduction in sales with respect to the estimates are HT industries (179.53
MU), and LT- 2a (31.14 MU). Further, the sales to IP sets have increased
by 570.24 MU.
In response to the preliminary observations, the HESCOM in its reply has
stated that, HT sales have decreased due to reduction in sales to
categories other than HT-2c as compared to the estimated sales to
these categories. Further, it is stated that the reduction in sale to HT
category is due to HT consumers drawing power under Open Access.
HESCOM has also stated that there is increased sales in LT-1, LT4 (a) &
(c), LT5 and LT6 categories.
The Commission notes that as per the information furnished by the
HESCOM, there is considerable increase in open access sales from
97.37 MU in FY13 to 252.36 MU in FY15.
b) Sales to IP Sets:
In its Tariff Order dated 6th May, 2013, the Commission had approved
specific consumption of IP sets at 8,244 units/installation/annum for the
entire control period of the FY14 to the FY16, whereas, as per the IP sets
consumption reported by the HESCOM in its tariff filing, the specific
consumption works out to 8,996 units /installation/annum for the FY15,
which indicates a huge increase in the specific consumption by 752
units/installation/annum. The total IP sets consumption reported by the
HESCOM for the FY15 was 5,266.70 MU as against 4,696.46 MU sales
quantum approved by the Commission. The difference in IP sets
consumption between the approved and the actual for the FY15 is
570.24 MU.Thus, the specific consumption has increased by 752 units
xxvi
xxvii
feeders
segregated
under
NJY,
despite
achieving
considered
the
metered
data
of
sample
DTCs
feeding
xxviii
the FY15 without any basis for arriving at the net IP sets consumption.
Further, the HESCOM has also not submitted the necessary data to
justify its claim in respect of IP sets consumption considered for the
FY15. The result of the analysis made by the HESCOM from April, 2015
onwards cannot be a basis for arriving at the total consumption of IP
sets for the previous period, i.e., FY15. It is clear that the HESCOM has
not complied with the Commissions direction to it to submit the
metered data, despite segregating a large numbers of 11 kV feeders
as rural and agricultural feeders under NJY, wherein it was possible to
compute the total IP set consumption accurately on the basis of
feeder energy meter readings.
Further, the Commission, during the validation meeting held on
10.02.2016, had also directed the HESCOM to submit the IP sets
consumption on the basis of energy meter readings of 11 kV
agricultural feeders which have been segregated under NJY. In
response, the HESCOM has submitted the details of IP sets consumption
based on the meter data in respect of DTCs feeding predominantly IP
loads, in support of its claims in respect of total IP sales to an extent of
5,266.70 MU for the FY15. The HESCOM has stated that the bifurcation
of loads on segregated agricultural feeders was not fully effected in
the field and for that reason, the consumption on the basis of
agricultural feeders for the FY15 could not be furnished to the
Commission and has requested the Commission to approve the sales
of 5,266.70 MU made to IP sets.
The Commission notes that, due to field issues in transferring of loads
from agricultural feeders on to the NJY feeders, the HESCOM has
assessed the IP set consumption for the FY15 based on the readings
from the meters provided to DTCs feeding predominantly IP set loads.
The HESCOM should have addressed these field issues while
commissioning of feeders to ensure that loads on the respective
feeders were transferred to enable taking accurate consumption of IP
sets. Further, the Commission notes that the increase in sales to IP sets
xxix
for the FY15 can only be partly attributed to the fact that the HESCOM
has serviced 29,633 number of IP sets more than it has projected. The
increase in sales could be also due to supplying more number of hours
of power to IP sets on agricultural feeders than stipulated by the
Government. Hence, the HESCOM is directed to regulate henceforth
the hours of power supply to exclusive agricultural feeders as stipulated
by the Government.
For the present accepting the HESCOMs explanation on this issue, in
the absence of feeder wise energy meter data in respect of
segregated agricultural feeders, based on the meters provided to
DTCs feeding predominantly IP set loads, the Commission decides to
approve 5,266.70 MU sales to IP sets for the FY15 as filed by the
HESCOM, in its tariff application.
Category
LT-2a*
LT-2b
LT-3
Approved
1346.50
12.54
383.71
Actuals
considered
for APR
1315.36
13.68
371.11
xxx
Difference (Actuals
Approved)
-31.14
1.14
-12.60
LT-4b
LT-4c
LT-5
LT-6
LT-6
LT-7
HT-1
HT-2a
HT-2b
HT-2c
HT-3a & b
HT-4
HT-5
Sub total
BJ/KJ
IP
Sub total
Grand total**
28.57
0.77
303.44
199.58
131.37
20.07
200.37
1105.60
121.71
26.00
148.36
18.11
26.73
4073.43
85.21
4696.46
4781.67
8855.09
17.02
1.07
315.81
203.28
133.13
22.61
195.96
926.07
114.55
47.37
137.38
15.70
19.67
3849.77
91.92
5266.70
5358.62
9208.39
-11.55
0.30
12.37
3.70
1.76
2.54
-4.41
-179.53
-7.16
21.37
-10.98
-2.41
-7.06
-223.66
6.71
570.24
576.95
353.29
FY15
19.50%
19.00%
18.50%
xxxi
FY15
11059.46
9208.39
16.74%
18.50%
1.76%
11298.64
239.18
2.89
69.18
34.59
Power Purchase:
The Commission in its Tariff order dated 12th May, 2014 had approved
source wise quantum and cost of power purchase for FY15. The
HESCOM, in its application, has submitted the details of actual power
purchase for FY15 for reviewing its Annual Performance. The details of
power purchase is listed as under:
TABLE 4.6
HESCOMs POWER PURCHASE FOR FY 15
Source
xxxii
Difference of Actuals
over the Approved-for
FY15
KPCL
Hydel
Stations
KPCLThermal
Stations
Total
CGS
3474.26
193.09
Rate
in Rs
per
Unit
0.56
2794.25
1123.44
4.02
2908.45
1107.63
3.81
-114.20
15.81
0.21
-3.93
1.43
5.57
6268.51
2387.02
1316.53
735.13
2.10
3.08
6477.47
2592.37
1291.9
811.6
1.99
3.13
-208.96
-205.35
24.63
-76.51
0.11
-0.05
-3.23
-7.92
1.91
-9.43
5.30
-1.63
Major IPPs
1057.40
496.12
4.69
1208.4
551.7
4.57
-151.00
-55.58
0.13
-12.50
-10.07
2.77
IPPs -Minor
(NCE
Projects)
Other
States
Projects
Short
/Medium
term
including U
I & Sce-11
Transmissio
n Charges
(KPTCL &
PGCIL)
LDC
Charges
(POSOO &
SLDC)
Energy
Balancing
1017.61
380.64
3.74
1065.3
389.55
3.66
-47.69
-8.91
0.08
-4.48
-2.29
2.29
28.87
9.08
3.15
37.26
11.87
3.19
-8.39
-2.79
-0.04
-22.52
-23.50
-1.27
554.15
277.91
5.02
279.55
145.82
5.22
274.60
132.09
-0.20
98.23
90.58
-3.86
530.20
515.92
0.00
14.28
0.00
2.77
11.19
5.91
0.00
5.28
0.00
89.34
199.6
27.93
1.40
199.60
27.93
1.40
Others
Charges
TOTAL
0.59
0.00
0.59
0.00
11513.19*
3785.31*
3.29
11660.35
3724.31
3.19
-147.19
61.01
0.09
-1.26
1.64
2.94
Energy in
MUs
Cost in
Rs Cr
184.27
Rate
in Rs
per
Unit
0.52
-94.76
Energy in
MUs
Cost in
Rs Cr
3569.02
Energy
in MUs
8.82
Rate
in Rs
per
Unit
0.04
-2.66
4.79
7.64
Cost
in Rs
Cr
Energy
Cost
*Excluding HRECS
xxxiii
Rate
exchanges
and
its
costs
duly
making
necessary
Name of
Company
HESCOM
Total Input
Energy incl.
HRECS
(MU)
11793.59
Non-Solar RPO
Target
(MU)
(%)
825.55
7
Achieved
(MU)
(%)
809.02
6.86
Solar RPO
Target
(MU)
(%)
29.48 0.25
Achieved
(MU)
(%)
39.61
0.34
xxxv
expenses as follows:
TABLE 4.8
O & M Expenses for FY15 HESCOMs submission
Amount in Rs.Crores
Particulars
FY15
48.86
455.46
76.63
580.95
O&M expenses
xxxvi
TABLE 4.9
Approved O&M Expenses for FY15
Amount in Rs. Crores.
Particulars
No. of installations as per actuals as per Audited Accts
Weighted Inflation Index
FY15
4289372
6.89%
5.17%
467.68
565.55
As per the Annual Audited Accounts of HESCOM for FY15, the actual
O&M expenditure is as follows:
TABLE 4.10
48.86
455.46
76.64
580.96
These
xxxvii
WPI
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
92.6
98.72
103.37
109.59
114.94
124.92
127.86
140.08
153.35
164.93
175.35
182
CPI
107
111.1
115.8
122.9
130.8
141.7
157.1
175.9
191.5
209.3
232.2
246.9
Composite
Series
104.12
108.624
113.314
120.238
127.628
138.344
151.252
168.736
183.87
200.426
220.83
233.92
Yt/Y1=Rt
Ln Rt
1.04
1.09
1.15
1.23
1.33
1.45
1.62
1.77
1.92
2.12
2.25
0.04
0.08
0.14
0.20
0.28
0.37
0.48
0.57
0.65
0.75
0.81
Year
(t-1)
1
2
3
4
5
6
7
8
9
10
11
0.04
0.17
0.43
0.81
1.42
2.24
3.38
4.55
5.89
7.52
8.90
35.36
212.19
3036.00
0.07
0.0724
7.24
For the purpose of determining the normative O & M expenses for FY15,
the Commission has considered the following:
a) The actual O & M expenses allowed for FY13 excluding contribution
to Pension and Gratuity Trust.
b) The three year compounded annual growth rate (CAGR) of the
number
of
installations
considering
the
actual
number
of
FY15
4090052
7.24%
3.52%
400.19
470.61
Sl.
No.
1
2
3
Particulars
Normative O & M expenses
Additional employee cost (uncontrollable
O & M expenses)
Allowable O & M expenses for FY15
FY15
470.61
83.22
553.83
xxxix
4.2.6 Depreciation:
HESCOMs Submission:
The HESCOM has claimed an amount of Rs.99.05 Crores as
depreciation, worked out after deducting depreciation on assets
created out of consumers contributions / grants as per Accounting
Standards (AS) 12
Commissions analysis and decisions:
As per the Audited accounts of the HESCOM for FY15, it is noted that,
Rs.99.05
Crores
has
been
accounted
as
depreciation.
The
Regulations,
2006
as
amended
on
1st
February,
2012.
xl
TABLE 4.12
Capital expenditure for FY15
Amount in Rs. Crores
Sl
No
1
a
b
c
d
Particulars
Units
RGGVY
I
2
a
b
c
e
f
Water works
Expansion of network and
system improvement works.
E & I works.
Energization of IP sets under
general.
Service connections other than
IP/BJ/KJ/Water works.
Construction of new 33 KV
stations
Construction of new 33 KV
lines.
Augmentation of 33 KV
stations.
Construction of 11 KV lines for
33 KV / 110 KV sub-stations.
R- APDRP.
i
3
xli
Actual
Expenditur
e
50.00
35.85
village
s
1.98
Nos.
1.00
1.32
Nos.
0.50
0.83
Nos.
0.50
0.32
1.00
No of
House
hold
Nos. of
Village
s
Nos.
3.04
10.00
0.53
30.00
50.00
19.52
Nos.
40.00
1.87
Nos.
35.00
21.83
8.00
4.68
Nos.
8.00
0.05
Feeders
40.00
12.43
50.00
72.77
Nos
Kms
No of
feeder
/Kms
PART
A&B
Approve
d Capex
Nos
15.49
45.00
91.80
Others
a
b
d
e
f
g
h
4
a
b
c
5
a
b
c
Nos.
7.50
0.00
Nos.
15.00
7.76
Nos.
25.00
2.94
Nos.
10.00
1.91
Kms
10.00
1.81
Kms
Kms
8.00
20.00
200.00
295.50
10.00
12.18
16.29
42.89
1.00
1
1.02
Nos.
80.00
110.03
Nos.
5.00
5.20
Nos of
works
3.00
2.11
Nos of
works
10.00
6.96
3.00
0.00
20.00
5.20
797.50
1.06
458.78
Nos
No of
works
Total
principle approval, but the HESCOM has not sought any approval of
this kind. Some of the categories in which the capex has been
exceeded above the approved limit are:
i.
Sets, the HESCOM has exceeded its own projections by 46% and
104% over the approved capex of Rs.50 Crores and Rs.45 Crores.
iii.
v.
xliii
Particulars
Capital Investment Proposed &
Approved
Capital
Investment
actually
incurred (Figures as per Annual
Report)
Short fall
% Achievement
FY12
FY13
FY14
FY15
1495.17
1189.22*
1178*
797.5*
224.48
251.27
343.05
358.09
1270.69
937.95
834.95
431.41
15.01%
21.13%
29.12%
44.90%
* Rs.500 Crores was considered for the purpose of computing ARR for FY13, FY14 & FY15
From the above table, it can be noted that, the HESCOM was not able
to achieve more than 44.90% of the approved capex in any of the
year from FY12. Further, looking at the capital expenditure for FY15, it is
noted that, even though it has exceeded the capex in certain
categories of works, it has not exceeded the overall capex approved
by the Commission.
Taking into consideration the above facts, the Commission decides to
allow the actual capital expenditure of Rs.358.09 Crores for FY15, after
deducting the capex not meeting the prudence norms as per the
following para.
xliv
Numbers
Amount
in Rs. Lakhs
120
4,463
40
217
33
91
01
Nil
Nil
01
68.68
68.68
xlv
TABLE 4.15
Summary of Works having cost overrun
Particulars
Within 10%
10-25%
Above 25%
66
20
23
13
03
03
41
17
07
TABLE 4.16
Summary of Works having Time overrun
Between one
Particulars
Within Year
and two Years
Rs.6 Lakhs and above
106
09
Rs.6 Lakhs and Rs.3 Lakhs
40
below Rs.3 Lakhs
33
-
Above 2
Years
05
-
12.08.2015 for which pre commissioning test has been carried out after
four months on 01.12.2015 and the load on the transformer has been
taken.
project is not proper. The Commission views this matter seriously and
directs the HESCOM to monitor and avoid such things in future. The
Commission noting the above points has taken a view that, one work
amounting to Rs.68.68 Lakhs in the samples selected by the consultant
during FY15, does not qualify for being treated as prudent and
consequently the corresponding depreciation and interest on loans
allowed by the Commission in the tariff have to be disallowed in APR of
FY15 as detailed below:
xlvi
TABLE 4.17
Details of Amounts disallowed in APR FY15
Particulars
Total cost of categorized works eligible for prudence check
Total cost of the sample works
Cost of sample works not meeting prudence norms (01 work
with cost of Rs.68.68 lakh against a sample basket of 61 works
with Rs.954 Lakhs)
Percentage of cost not meeting prudence norms with respect
to the total samples considered in the category (Rs.68.68 lakh
against a sample basket with Rs.954 Lakhs)
Overall cost of capex not meeting prudence norms compared
with the cost of that category of samples (Rs.68.68 lakh forming
7.2% of sample basket escalated to total capex under the
respective category of works of Rs.1964 Lakhs)
Amount to be disallowed towards works not meeting prudence
norms calculated on the basis of weighted average interest &
weighted average depreciation on the capex to be disallowed.
Amount in Rs.
Lakhs
10,313
4,771
68.68
7.20
141.39
17.43
xlvii
xlviii
HESCOM,
the
Commission
decides
not
to
continue
the
disallowance.
4.2.9
Particulars
Total opening balance of loans
Add new Loans
FY15
1003.47
Less Repayments
153.63
1023.13
1013.30
xlix
173.29
116.26
The HESCOM has stated that it has borrowed short term loans
and overdrafts during FY15 to meet its day to day expenditure
(working capital).
application, it is stated that short term loans for FY15 has been availed
at a weighted average rate of interest of 10.98%.
However,
considering the base rate of interest with spread of 250 basis points
and noting the downward trend in the interest rate, the Commission
l
li
TABLE 4.19
Allowable Interest on Working Capital for FY15
Amount in Rs.Crores
Particulars
FY15
46.15
3174.87
31.75
808.60
886.50
11.75%
104.16
82.91
93.54
Under the
lii
Sl.
No.
1.
2.
3.
4.
Particulars
Interest on Loan capital
Interest on working capital
Interest on consumer deposits
Other interest and finance charges
Total interest and finance charges
FY15
116.26
93.54
44.64
2.47
256.91
Sl
No
1
2
3
4
Particulars
Losses relating to fixed assets
Assets decommissioning cost
Gain on sale of assets
Miscellaneous losses and write offs
Total
liii
FY15
0.10
0.14
(0.12)
8.39
8.51
The HESCOM has not claimed Net Prior Period Charges for FY15.
Commissions analysis and decisions:
The Commission notes that the net prior period credits/ charges are
included in the other income account in the audited accounts for
FY15. As per the Audited Accounts for FY15, the prior period expenses is
Rs.47.24 Crores on account of employee costs, A&G and other
expenses, under provided depreciation and power purchase cost of
earlier years. Further the prior period income of Rs.12.58 Crores is on
account of excess provision for depreciation, other expenses and
other income of prior period.
Thus, the Commission decides to allow a net prior period debit of
Rs.34.66 Crores for FY15.
4.2.15 Return on Equity:
HESCOMs Submission:
The HESCOM has not claimed any Return on Equity for FY15.
Commissions analysis and decisions:
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 as amended on 1st February, 2012, the Commission
computes the allowable Return on Equity at 15.5% on equity plus
reserves and surplus, as at the beginning of the year besides allowing
taxes as per actuals. Considering the status of equity amount as per
audited accountsfor FY15, the allowable RoE is determined as follows:
liv
TABLE 4.22
Allowable Return on Equity
Amount in Rs. Crores
Particulars
Paid Up Share Capital
Share deposit
Reserves and Surplus as on 31.03.2015
Less recapitalized security deposit
Total Equity
FY15
707.53
155.25
(1219.60)
34.00
(390.82)
As per the audited accounts, HESCOM has not incurred any expenditure
towards payment of Income Tax for FY15. The Commission decides not to
allow any income tax for FY15.
4.2.17 Other Income:
HESCOMs Submission:
The HESCOM has claimed a net amount of (-) Rs.0.08 Crores as other
income.
Commissions analysis and decisions:
As per the audited Accounts FY15, an amount of Rs.26.58 Crores is
shown as Other Income for FY15. This amount includes income from
interest on fixed deposits, sale of scrap, profit on sale of stores, rebate
on collection of electricity duty and other recoveries.
lv
The Commission has been allowing an amount of Rs.0.50 Crore per year
towards consumer relations / consumer education. The HESCOM in its
application had not reported any expenditure towards Consumer Relations /
Consumer Education incurred separately during FY15. However, the
HESCOM in its reply to the Commissions preliminary observations has
informed that an amount of Rs.6.30 Lakhs has been incurred towards
consumer education programmes under a separate head of account. Hence,
considering the expenditure reported by HESCOM, the Commission decides
to factor Rs.0.06 Crores in the APR, as expenses towards consumer relations
/ consumer education for FY15.
4.3
Sl.
No.
1
2
Particulars
Revenue at existing tariff in Rs Crs
Revenue from tariff and Misc Charges
Tariff Subsidy for IP & BJ/KJ installation
Total Revenue
Expenditure in Rs Crs
Power Purchase Cost
lvi
As per
APR
2297.20
2554.38
4851.58
3330.10
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4.4
445.54
9.94
3785.58
553.83
99.05
116.26
93.54
44.64
2.47
0
256.91
8.51
34.66
0.00
0
0.06
26.58
4712.02
34.42
4746.44
lvii
CHAPTER 5
ANNUAL REVENUE REQUIREMENT FOR FY17-19
5.0
in
Rs.Crores
Sl.
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
Particulars
FY17
lviii
FY18
FY19
13738.00
5.96%
12919.59
16.40%
14505.47
6.03%
13631.44
16.20%
15307.86
5.95%
14397.42
16.00%
4389.95
6410.84
10800.79
4663.85
6759.28
11423.13
4968.34
7125.50
12093.84
2749.15
3260.81
6009.96
2922.01
3437.82
6359.83
3120.48
3623.87
6744.35
4902.22
579.18
6.00
4915.82
648.59
7.00
5252.05
651.85
8.00
5487.40
586.37
57.21
89.73
733.31
112.10
5571.41
641.09
61.91
97.10
800.10
128.48
5911.90
700.40
66.99
105.07
872.46
147.33
315.00
127.62
361.38
135.67
413.06
144.36
140.00
59.38
0.00
0.00
140.00
67.11
0.00
0.00
140.00
75.85
0.00
0.00
26
27
28
29
30
31
32
33
34
35
36
37
38
642.00
18.64
0.00
0.00
704.16
19.65
0.00
0.00
773.27
20.66
0.00
0.00
0.50
27.94
6966.01
-956.05
132.41
-197.69
-23.72
-57.31
7112.32
0.50
28.67
7195.63
-835.80
-1102.36
0.50
29.40
7696.72
-952.37
-1938.16
8297.99
9634.88
5.2
5.2.1
lix
lx
Scheme
Mandatory works, Social obligation and other works
Gangakalyan IP sets
Special Development Plan for backward talukas under
Nanjundappa scheme(SDP)
Electrification of Hamlets(Not covered under RGGVY)
Electrification of HB/DB/JC/AC (Habitations) under SCP
(Not covered under RGGVY)
Electrification of TC(Habitations) under TSP
(Not covered under RGGVY)
Electrification of BPL Households
(Not covered under RGGVY)
Water works
RGGVY
DDUGJY
DDG (Phase-1 & Phase-2)
Rehabilitation of flood affected villages (special
programme).
20.00
25.00
25.00
20.00
20.00
20.00
1.00
1.00
1.00
1.00
0.50
0.50
0.50
0.50
0.50
1.00
1.00
1.00
5.00
5.00
110.00
5.00
3.00
100.00
5.00
3.00
100.00
E & I works.
25.00
25.00
25.00
125.00
125.00
125.00
30.00
30.00
30.00
4.00
4.00
4.00
Augmentation of 33 KV stations.
3.00
3.00
3.00
5.00
5.00
5.00
50.00
40.00
40.00
works.
R- APDRP.
50.00
20.00
40.00
20.00
30.00
20.00
1.00
1.00
1.00
IPDS
46.00
50.00
50.00
3
a
0.05
0.05
0.05
2.00
lxi
50
50
50
50.00
25.00
25.00
5.00
5.00
5.00
10.00
10.00
10.00
6.00
6.00
6.00
h
i
100
100
100
4
a
b
1.00
1.00
1.00
0.5
0.5
0.5
1.00
1.00
1.00
a
b
100.00
2.00
100.00
2.00
100.00
2.00
3.00
3.00
3.00
5.00
5.00
5.00
1.00
20.00
5.00
901.05
1.00
10.00
5.00
838.55
1.00
10.00
5.00
827.55
d
e
f
g
lxii
scheme for a feeder may cost more than Rs.2 to Rs.3 Crores. Further,
HESCOM has stated that, it is not going to continue with the HVDS
program, as it is not an economical solution.
In the case of Smart grid/sprinkler/drip irrigation system, the HESCOM
has shown Rs.0.5 Crore allocation for each year and has stated that, it
has made provisions for only sanctioning the estimates and calling
tenders.
In respect of Replacement of failed distribution transformers, the
HESCOM has indicated Rs.100 Crores each for FY17 to FY19. From the
data submitted for FY15, on the failure and replacement of
transformers, the capex incurred on the new transformer works out to
only 15 to 20 % of the amount indicated as incurred and it is felt that,
the accounting practice in respect of released and replaced
transformers is to be checked/examined. Further, the HESCOM should
note that, the failed transformers should be replaced by repaired good
transformers only and it should be charged to revenue expenditure. In
case, the failed transformer is scrapped, it can be replaced by a new
transformer, which has to be accounted under capital expenditure.
Hence, considering the scrapped transformers in the previous years the
capex for replacement of failed distribution transformers by new ones,
shall to be limited to Rs.5 Crores and the proposed capex for FY17, FY18
and FY19 shall be considered as Rs.806.05 Cores, Rs.743.55 Crores and
Rs732.55 Crores respectively.
For creating infrastructure to UAIP Sets, HESCOM has shown a capex of
Rs.20 Crores for FY17 and Rs.10 Crores for FY18 and FY19. The HESCOM,
in its reply to the preliminary observations, has stated that, due to nonparticipation of the bidders for execution of the work, the program is
delayed. The HESCOM should take necessary action to complete the
regularization of UAIP sets by creating infrastructure.
lxiii
The HESCOM, while projecting the capital expenditure for the control
period, should identify high loss feeders, high loss subdivisions, division
and circles to specifically reduce losses and to improve reliability of
distribution system. The HESCOM should list out high loss feeders of the
year in descending order and chalk out a program to tackle high loss
feeders, on a priority, to reap the benefit of loss reduction.
The HESCOM should also list out the lengthy 11 Kv feeders with huge
loads and bifurcate them to reduce the loads and losses thereby
improving the reliability and quality of supply.
The optimal distribution system loss shall be less than 10%, even to
maintain the voltage regulations, within the permissible limits of 9 % for
11Kv system and 6% for LT distribution system. The HESCOM should plan
towards bringing down the distribution system losses below 10%, by the
end of the control period.
The HESCOM should prepare a detailed perspective plan by
conducting 11Kv feeder wise and DTC-wise load flow studies
considering the present and projected loads on each feeder. This
would lead to least cost, techno economically feasible improvement
methods for reducing the current level of distribution system energy
losses to less than 10% and improve the reliability of the system.
The HESCOM should subject its system strengthening works for the
period from FY-17 to FY-21, to periodical techno-economic analysis, to
ascertain as to whether the investments have resulted in loss reduction
and improvement of reliability.
The HESCOM should take up system improvement works such as:
a) Reactive power compensation to improve the PF to 0.9-0.95 lag.
b) Reconfiguration of distribution lines.
c) Replacement of conductors by higher size, wherever required.
lxiv
lxv
Feeder
Categor
y
Rural
EIP
Urban
NJY/
semi
urban
3ph
1 ph
3ph
open
delta
Industrial/H
T/
EHT/Water
Supply
FY-17
22-24
18-20
3+3
02-04.
3+3
02-04.
24
FY-18*
24
24
4+3
05-06.
4+3
05-06.
24
FY-19*
24
24
4+3
05-06.
4+3
05-06.
24
* Note: By FY-18, the thermal power plants BTPS unit-3 of capacity 1x700 MW and
Yeramarus thermal plant of capacity 2x800 MW is expected to start generation.
Hence, hours of power supply is assumed more for rural and EIP feeders as per
govt. norms.
It is further stated that, for LT-2(a), LT-b, LT-3, LT-5,LT-6, HT-1, HT-2(a)
and HT-2(b) categories, five-year CAGR is considered, for LT-4(b)
category four-year CAGR is considered, for LT-4(c) (ii), LT-7, HT3(a)(iii), HT-3(b), HT-4 and HT-5 categories
present trend is
lxvi
The Commission reiterates its stand that, as the sales increase due to
increase in the number of installations, the line loss is taken care of by
the specific consumption and grossing up sales by loss is not correct.
Thus, the Commission has considered the specific consumption as per
actuals for FY15 for estimating the sales to BJ/KJ installations.
ii) Other Categories excluding IP Sets:
a) The Commission had observed that the HESCOM had included FY16 data, which is an estimated figure, for working out the CAGR
and had suggested that only actual data available up to FY15 had
to be considered for estimating the CAGR. In reply it is stated that,
the estimates for FY-16 are made considering the data up to
November, 15 and it has considered FY16 as the base year for
projecting the number of installations and sales.
The Commission
notes that even though FY16 is the base year, including FY16 data
(which itself is an estimated figure) for arriving at actual growth rate
is not correct.
b) The midyear number of installations indicated at page 66 of the
filing do not match with the midyear installations indicated in D-21
Format. Further, it should indicate the year-end figures in D-2 Format
and mid-year figures in D-21 Format. Also, it is noted that the yearend figures for the number of installations indicated in page 65 and
66 are same as the mid-year number of installations indicated at
page 66. Thus the figures shall be reconciled. In the replies it is
stated that the figures agree for FY17.
lxvii
Mid-Year figure as in
D-21
Category
Mid-Year figure as in
116693
146781
Page-66
Further, it was also noted that there are minor differences in the total
number of installations for FY 18 & FY19 as indicated at page 66 and D2 Format. The figures have since been reconciled and confirmed in
HESCOMs replies to the above query.
lxviii
f) Regarding the sales growth rate, the Commission had noted that
the growth rate considered for LT- 2(b), LT-5 and LT-6 SL is lower and
for HT1, HT-3 (a) & (b) and HT-4 categories, it is higher. HESCOM has
stated that it has revised the sales for FY16 for LT- 2(b), LT-5, LT-6 SL,
HT1 and HT-3 (a) & (b) considering the growth rate of second half of
FY15 and accordingly has worked out the CAGR. Regarding HT-4
installations, it is stated that, sales is estimated keeping in view the
upcoming colonies and apartments.
The replies furnished by HESCOM have been noted by the Commission
and the approach of the Commission in estimating the sales is
discussed in the subsequent paragraphs.
II. Commissions approach for estimating the number of installations
and sales for Control Period FY17-19:
lxix
The Commission has issued the KERC (Load Forecast) Regulations, 2009
which specify that the Commission shall normally adopt the forecast as
per EPS and can deviate from the EPS while approving ERCs or PPAs by
passing orders after duly giving opportunity to the stakeholders.
For the present control period FY17 to FY19, the filing done by ESCOMs
indicates that sales forecast is not in tune with the 18th EPS. The tariff
petition filed by the ESCOMs which includes the sales estimates and
power
purchase
quantum
has
been
made
public
and
the
Year
18th EPS
Generation
Actual supplied
MU
MU
2013
58513
57046
2014
63001
57725
2015
67833
59969
From the above Table, it is seen that the actual growth rate is
different from those estimated by in the 18th EPS, by the CEA.
b. The loss levels considered by the Commission are as per the loss
reduction trajectory fixed by the Commission for the respective
control periods. Hence the loss levels as adopted by the CEA are
not relevant for the purpose of the approval of ARR and Tariff.
lxx
lxxi
e. For LT 4b and 4c, LT-7, HT-2, HT-4 and HT-5 categories, the
estimates of HESCOM are retained as there is no specific growth
pattern in these categories.
Based on the above approach, the total number of installations
(excluding BJ/KJ and IP installations) estimated by the Commission for
the control period is indicated in the table below:
Nos.
FY17
FY18
FY19
Filed
Approved
Filed
Approved
Filed
Approved
3131030
3122019
3274916
3261773
3425074
3407402
2) Energy Sales:
i)
For categories other than BJ/KJ and IP sets, generally the sales are
estimated considering the following approach:
a. The base year sales for FY16 as estimated by HESCOM are
validated duly considering the actual sales up to November,
2015 and modified suitably.
b. Wherever the sales estimated by HESCOM for the control period
is within the range of the estimates based on the CAGR for the
period FY10 FY15 and for the period FY12 FY15, the estimates
of HESCOM are retained.
lxxii
for the period FY12 FY15, the estimates based on the higher of
the CAGRs for the period FY10 FY15 and for the period FY12
FY15 are considered.
e. For LT 4b and 4c, LT-7, HT-2, HT-4 and HT-5 categories, the
estimates of HESCOM are retained as there is no specific growth
pattern in these categories.
f.
Based on the above approach, the sales (excluding BJ/KJ and IP sales)
estimated by the Commission for the control period is indicated in the
table below:
Figures in MU
FY17
FY18
FY19
Filed
Approved
Filed
Approved
Filed
Approved
4389.95
4352.70
4663.85
4628.84
4968.34
4933.19
Particulars
Installations consuming
less than or equal to18
units
No. of
Installations
Consumption in
MU
618729
91.92
12.38
lxxiii
Installations consuming
more than 18 units and
billed under LT2(a)
142905
72.12
42.06
FY17
FY18
FY19
Installations consuming
less than or equal to18
units
90.84
89.19
87.57
Installations consuming
more than 18 units and
billed under LT2(a)
77.02
82.79
88.47
consumption
of
603
units/installation/month
has
been
lxxv
No of installations
Mid-Year
no
of
installations
Specific consumption in
units/installation/annum
Sales in MU
FY17
6,84,611
6,66,686
FY18
7,22,444
7,03,528
FY19
7,62,368
7,42,406
As approved by the
Commission
FY17
FY18
FY19
7,14,611 7,34,778 7,74,703
6,81,686 7,24,695 7,54,741
9,476
9,475
9,472
8,244
8,244
8,244
6,317.43
6,665.83
7,032.01
5,619.82
5,974.38
6,222.08
As filed by HESCOM
Particulars
FY16
6,48,760
lxxvi
The compliance
Category
HESCOMs
estimate
FY-17
Approved**
No.
LT-2a*
No.
HESCOMs
estimate
FY-18
Approved**
No.
No.
FY-19
HESCOMs
Approved**
estimate
No.
No.
2577712
2569914
2688337
2677762
2802815
2789253
6088
6141
6563
6603
7075
7101
334935
335266
350807
350244
367443
365891
LT-4 (b)
1024
1024
1195
1195
1393
1393
LT-4 (c)
383
383
453
453
538
538
LT-5
108301
107495
114622
113960
121312
120815
LT-6
37277
36507
41126
39735
45373
43248
LT-6
20812
20800
21431
21432
22068
22083
LT-7
41662
41622
47262
47262
53614
53614
HT-1
278
268
308
297
341
329
HT-2 (a)
1433
1433
1558
1573
1694
1727
HT-2 (b)
486
487
495
494
504
502
HT2C
307
307
378
378
463
463
HT-3(a)& (b)
235
235
267
270
306
310
HT-4
32
32
33
33
34
34
HT-5
65
65
81
81
101
101
LT-2b
LT-3
lxxvii
Sub-Total
other than
BJ/KJ and
BJ/KJ
IP sets
IP
3131030
3122019
3274916
3261773
3425074
3407402
611431
611431
600325
600325
589421
589421
684611
714611
722444
734778
762368
774703
Sub Total
1296042
1326042
1322769
1335103
BJ/KJ and
IP sets
Other
Total than
4427072
4448061
4597685
4596876
BJ/KJ & IP
*Includes BJ/KJ consuming more than 18 units/installation/month
1351789
1364124
4776863
4771526
** Excludes HRECS
iv. The category wise approved sales for the control period vis--vis the
estimates made by HESCOM is indicated below:
TABLE 5.4
Category wise Approved Energy sales
Category
FY-17
HESCOMs
Approved**
estimate
FY-18
HESCOMs
Approved**
estimate
FY-19
HESCOMs
estimate Approved**
MU
MU
MU
MU
1487.78
1473.94
1578.30
1567.97
1674.36
1667.49
14.43
15.35
15.66
16.58
16.98
17.90
440.50
440.50
473.72
473.52
509.65
509.02
LT-4 (b)
17.47
17.47
18.16
18.16
18.87
18.87
LT-4 (c)
1.48
1.48
1.97
1.97
2.64
2.64
LT-5
312.98
316.72
317.17
324.81
321.43
333.10
LT-6
231.47
231.47
249.13
252.19
268.14
274.76
LT-6
134.86
137.51
139.75
145.29
144.81
153.51
LT-7
14.61
14.61
14.75
14.75
14.90
14.90
HT-1
239.32
229.75
258.61
246.33
279.46
264.11
HT-2 (a)
1013.41
1013.41
1042.09
1042.10
1071.58
1071.60
HT-2 (b)
135.84
132.59
145.50
141.46
155.86
150.91
LT-2a*
LT-2b
LT-3
HT2C
MU
MU
83.14
83.14
114.97
114.97
159.04
159.04
230.82
212.92
261.75
236.42
297.81
262.52
HT-4
14.01
14.01
14.15
14.15
14.29
14.29
HT-5
17.83
17.83
18.17
18.17
18.52
18.52
Sub-Total
other than BJ/KJ and IP
sets
BJ/KJ
4389.95
4352.70
4663.85
4628.84
4968.34
4933.19
93.41
90.84
93.45
89.19
93.49
87.57
IP Sets
6317.43
5619.82
6665.83
5974.38
7032.01
6222.08
Sub Total
BJ/KJ and IP sets
Other than BJ/KJ & IP
Total
6410.84
5710.66
6759.28
6063.57
7125.50
6309.65
10800.79
10063.35
11423.13
10692.41
12093.84
11242.84
HT-3(a)& (b)
*
**
lxxviii
5.2.3
Particulars
Projected
Distribution losses
FY17
FY18
FY19
16.40
16.20
16.00
Particulars
FY10
FY11
FY12
FY13
FY14
FY15
FY16
Approved Distribution
losses
22.50
20.00
19.35
18.00
19.00
19.00
17.50
Actual
losses
20.86
20.54
19.99
19.88
18.05
16.74
distribution
In the
percentage point (in two years of the control period FY14-16). Overall
in the past five years HESCOM has been able to achieve distribution
loss reduction of 4.12 percentage point.
The distribution loss projections indicated by the HESCOM shows
reduction from existing levels of 16.74% in FY15 to 16.40% in FY17 and
further reduction 0.20 percentage point for each of the year FY18 and
FY19. It is observed that, the Commission has been allowing capital
expenditure as incurred by the HESCOM and it has also allowed the
capex as proposed for the ensuing control period. The majority of the
capex like HVDS, E&I works, NJY, DTC metering, RAPDRP should enable
HESCOM not only to strengthen its infrastructure but also reduce the
distribution losses.
The loss reduction proposed by HESCOM is meager as compared to
present actual loss levels.
TABLE 5.7
Approved Distribution Losses for FY17-19
Figures in % Losses
Particulars
FY17
FY18
FY19
Upper limit
16.50
16.00
15.50
Average
16.00
15.50
15.00
Lower limit
15.50
15.00
14.50
lxxx
5.2.4
The
consolidated
statement
showing
the
energy
Energy
(MU)
Energy (MU)
Energy (MU)
FY17
FY18
FY19
BESCOM
32907.24
34674.06
36540.95
MESCOM
5589.96
5904.27
6236.49
CESC
7214.18
7725.09
8274.48
HESCOM
13738.00
8559.14
13942.08
8902.63
14849.40
9292.18
322.87
350.14
372.61
AQUEOS
12.98
17.78
22.46
MSEZ
80.49
89.33
113.06
TOTAL
68424.40
72168.78
76161.08
GESCOM
HRECS
HESCOM submission:
The HESCOM has submitted its power purchase requirement for the
control period FY17 to FY19 based on the projected sales as follows:
TABLE 5.9
Energy Requirement as filed by HESCOM
Particulars
As filed by HESCOM
FY 17
FY18
FY19
10800.78
11423.14
12093.84
16.40
16.20
16.00
12919.59
13631.43
14397.43
3.47
3.37
3.27
13384.02
14106.83
14884.14
Sales (MU)
Distribution losses (%)
lxxxi
FY 17
FY18
FY19
Sales (MU)
10063.35
10692.41
11242.84
16.00
15.50
15.00
11980.18
12653.74
13226.87
3.47
3.37
3.27
12410.83
13095.04
13674.01
296.98
305.38
314.95
14.39
19.68
25.95
12722.20
13420.11
14014.91
5.2.5
Sources of Power:
HESCOMs submission;
In its filings, the HESCOM has furnished the sources of power to meet
the requirement of power of all ESCOMs for the control period FY17 to
FY19.
The HESCOM has submitted the sources of Power and the availability
of each source on the basis of:
lxxxii
SOURCES
Energy in
MU
Fixed Cost
in
Rs Cr
Variable
Cost in
Rs Cr
Gross Cost
in Rs Cr
Per unit
Cost
11604.37
28.77
739.16
767.93
0.66
21690.83
3110.50
6493.51
9604.01
4.43
CGS Energy:
18721.72
1983.03
4574.50
6557.54
3.50
UPCL:
7523.00
1231.51
1653.26
2884.77
3.83
Renewable Energy:
6821.92
0.00
2661.08
2661.08
3.90
147.75
63.75
0.00
63.75
4.31
1500.52
0.00
756.53
756.53
5.04
0.00
916.23
0.00
916.23
0.49
0.00
2745.17
0.00
2745.17
0.40
-2.04
0.00
-0.64
-0.64
416.34
0.00
176.80
176.80
lxxxiii
4.25
TOTAL
68424.40
10078.96
17054.21
27133.17
3.97
TABLE 5.12
Consolidated power purchases requirement filed by ESCOMs for FY 18
Energy in
MU
SOURCES
Fixed Cost
in Rs Cr
Variable
Cost in Rs
Cr
Gross Cost
in Rs Cr
Per
unit
Cost
12042.05
0.00
754.14
754.14
0.63
24277.85
5070.00
7060.74
12130.75
5.00
CGS Energy
21274.61
1983.04
5920.22
7903.27
3.71
UPCL
5628.59
1231.51
1261.69
2493.20
4.43
Renewable Energy
8349.07
0.00
3362.68
3362.68
4.03
147.75
53.52
0.00
53.52
3.62
0.00
1186.65
0.00
1186.65
0.56
0.00
2918.23
0.00
2918.23
0.40
-8.39
0.00
-3.24
-3.24
3.86
457.25
0.00
204.75
204.75
4.48
72168.78
12442.96
18560.98
31003.94
4.30
TABLE 5.13
Consolidated power purchases requirement filed by ESCOMs for FY 19
SOURCES
Energy in
MU
Fixed Cost
in Rs Cr
Variable
Cost in Rs
Cr
Gross Cost
in Rs Cr
Per unit
Cost
12042.05
0.00
772.48
772.48
0.64
24277.89
4932.96
7250.85
12183.80
5.02
CGS Energy
23344.44
1983.05
6744.61
8727.67
3.74
5628.59
1231.51
1286.92
2518.43
4.47
10219.82
0.00
4362.05
4362.05
4.27
147.75
53.52
0.00
53.52
3.62
0.00
1365.22
0.00
1365.22
0.58
0.00
2961.86
0.00
2961.86
0.39
UPCL
Renewable Energy
Other State Hydel
PGCIL & POSOCO
Charges
KPTCL Transmission &
SLDC and PGCIL
POSOCO Charges
lxxxiv
DEDUCT/ADD THE
EXCESS/DEFICIT
AVAILABILITY
HRECS, AEQUS-SEZ
AND M-SEZ FILINGS
TOTAL
-8.59
0.00
-37.24
-37.24
43.35
509.13
0.00
245.66
245.66
4.83
76161.08
12528.13
20625.33
33153.46
4.35
through
long-term
power
purchase
agreement.
The
lxxxv
Cost in Rs
Crs.
Per unit
Cost
Energy in
MU
Cost in Rs
Crs.
Per unit
Cost
Energy in
MU
Cost in Rs
Crs.
Per
unit
Cost
in Rs.
10704.90
1001.38
0.94
12045.33
1099.16
0.91
12045.33
1139.37
0.95
17646.77
7252.08
4.11
19323.50
8392.29
4.34
20992.89
9198.23
4.38
CGS Energy
21525.17
6980.84
3.24
21525.17
7082.24
3.29
21525.17
7184.17
3.34
UPCL
Renewable
Energy:
Other State
Hydel
7462.68
3093.67
4.15
7462.68
3129.03
4.19
7462.68
3165.10
4.24
6846.71
2790.38
4.08
8394.81
3413.83
4.07
10265.57
4452.20
4.34
144.08
67.73
4.70
144.08
71.64
4.97
144.08
75.78
5.26
Short Term
1108.80
558.84
5.04
0.00
0.00
0.00
0.00
SOURCES
KPCL Hydel
Energy
KPCL Thermal
Energy
Energy
in MU
lxxxvi
PGCIL &
POSOCO
Charges
KPTCL
Transmission,
SLDC and
PGCIL
POSOCO
Charges
TOTAL
949.21
0.44
958.70
0.45
968.29
0.45
3112.76
0.48
3197.08
0.47
3500.45
0.50
25806.89
3.94
27343.97
3.97
29683.58
4.10
65439.11
5.2.6
68895.57
72435.72
lxxxvii
The fixed charges and variable charges of RTPS Unit 1 to 7, BTPS unit 1
and the Hydel Generating Stations exclusive of Muinirabad, MGHE,
Shiva & Shimsha, are reckoned based on the respective PPAs
approved by the Commission.
The fixed charges and variable charges of Munirabad, MGHE, Shiva &
Shimsha hydel Stations, BTPS Unit 2 and RTPS unit 8, have been
computed based on the tariffs determined by the Commission and the
Commissions norms approved in the PPAs.
The fixed charges and variable charges for the Central Generating
Stations, UPCL Station and the Stations of DVC are reckoned based on
the tariffs determined by the CERC and the CERC norms.
The variable charges of all the thermal stations including CGS stations
are reckoned based on the recent landed cost of fuel and other
variable components.
lxxxviii
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in
Rs
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in Rs
2295.36
153.63
0.669
2389.11
209.603
0.877
4590.05
2030.90
4.425
3127.44
1291.364
4.129
CGS Energy
3744.34
1311.51
3.503
4188.28
1358.304
3.243
UPCL
1504.60
576.95
3.835
1452.06
601.954
4.146
Renewable Energy
1321.53
507.00
3.836
1321.53
550.130
4.163
31.79
12.20
3.838
28.04
13.179
4.701
250.33
127.17
5.080
215.746
108.737
5.040
183.24
0.489
184.693
0.441
585.18
0.426
615.500
0.484
5487.786
3.994603
4933.463
3.877838
Others
Short Term
PGCIL & POSOCO Charges
KPTCL Transmission, SLDC &
PGCIL POSOCO Charges
TOTAL
13738.002
lxxxix
12722.200
TABLE 5.16
Approved Power Purchase Cost of HESCOM for FY18
Power Purchase Cost as filed by
HESCOM
Source of Power
Energy in
MU
Cost in
Rs Cr
Per Unit
cost in Rs
Energy in
MU
Cost in
Rs Cr
Per Unit
cost in Rs
4383.72
229.69
0.524
2339.374
213.472
0.913
3243.03
1753.94
5.408
3752.898
1629.901
4.343
CGS Energy
3829.58
1426.45
3.725
4180.493
1375.472
3.290
788.00
349.05
4.430
1449.358
607.702
4.193
1666.92
716.58
4.299
1670.000
685.879
4.107
594.22
227.43
3.827
27.983
13.913
4.972
212.69
0.555
186.193
0.445
655.59
0.452
594.520
0.443
5571.413
3.841
5307.052
3.955
UPCL
Renewable Energy
Others
PGCIL & POSOCO Charges
KPTCL Transmission and
SLDC & PGCIL POSOCO
Charges
TOTAL
14505.479
13420.106
TABLE 5.17
Approved Power Purchase Cost of HESCOM for FY19
Power Purchase Cost as filed by
HESCOM
Source of Power
Energy
in MU
Cost in
Rs Cr
Per Unit
cost in Rs
Cost in
Rs Cr
Per Unit
cost in Rs
4383.72
235.52
0.537
2288.720
216.490
0.946
3243.07
1752.36
5.403
3988.836
1747.746
4.382
CGS Energy
4204.84
1576.01
3.748
4089.973
1365.057
3.338
788.00
352.58
4.474
1417.975
601.396
4.241
2198.95
489.27
901.05
190.98
4.098
3.903
2202.030
27.377
1085.854
14.398
4.931
5.259
243.54
0.579
183.983
0.450
659.85
0.431
655.290
0.468
5911.90
3.862
5870.214
4.188549
UPCL
Renewable Energy
Others
PGCIL & POSOCO
Charges
KPTCL Transmission
and SLDC & PGCIL
POSOCO Charges
TOTAL
15307.85
xc
14014.912
The HESCOM shall regulate the quantum and cost of power for the
control period, as approved by the Commission. However, since the
power purchase costs are uncontrollable as per the MYT Regulations,
any excess quantum or cost will be trued up in Annual Performance
Review of the respective years.
In respect of energy and costs allowed in respect of new generating
stations/ sources, the same is subject to approval of the Power
Purchase Agreements, by the Commission.
The Commission has fixed a ceiling rate of Rs.4.50 per unit for short-term
procurement and the same is retained for the year FY17.
The Commission notes that, the procurement of power under short term
has come down significantly over the years. With a view to reduce the
cost of power procurement by avoiding purchase of high cost energy,
the Commission reiterates its earlier directive that, any short-term/
contingent power procurement over and above the approved rate
Rs.4.50 per Kwh, shall be made by the ESCOMs only with the prior
approval of the Commission.
The Commission also reiterates its that any short-term or medium-term
power
xci
of
Amendment)
Energy
from
Renewable
Sources)(Third
xcii
Particulars
No of installations
FY17
FY18
FY19
4427071
4597681
4776864
6.69%
6.69%
6.69%
3.52%
3.52%
3.52%
680.26
736.11
796.54
Particulars
R&M cost
FY17
FY18
FY19
57.21
61.91
66.99
Employee cost
533.32
577.10
624.48
A&G expenses
89.73
97.10
105.07
680.26
736.11
796.54
Particulars
Normative O & M Cost
xciii
FY17
FY18
FY19
680.26
736.11
796.54
53.06
63.99
75.92
733.32
800.10
872.46
xciv
The Commission has computed the O & M expenses for FY17-19 duly
considering the actual O & M expenses of FY15 as per the audited
accounts (being the latest data available as per the audited
accounts) to arrive at the O & M expenses for base year i.e. FY16. The
actual O& M expenses for FY15 were Rs.580.96 Crores. Considering the
Wholesale Price Index (WPI) as per the data available from the Ministry
of Commerce & Industry, Government of India and Consumer Price
Index (CPI) as per the data available from the Labour Bureau,
Government of India and adopting the methodology followed by
CERC with CPI and WPI in a ratio of 80: 20, the allowable annual
escalation inflation rate for FY17 is computed as follows:
TABLE 5.19
Computation of Inflation Index for FY17
Year
WPI
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
92.6
98.72
103.37
109.59
114.94
124.92
127.86
140.08
153.35
164.93
175.35
182
CPI
107
111.1
115.8
122.9
130.8
141.7
157.1
175.9
191.5
209.3
232.2
246.9
Composite
Series
104.12
108.624
113.314
120.238
127.628
138.344
151.252
168.736
183.87
200.426
220.83
233.92
Yt/Y1=Rt
Ln Rt
1.04
1.09
1.15
1.23
1.33
1.45
1.62
1.77
1.92
2.12
2.25
0.04
0.08
0.14
0.20
0.28
0.37
0.48
0.57
0.65
0.75
0.81
Year
(t-1)
1
2
3
4
5
6
7
8
9
10
11
0.04
0.17
0.43
0.81
1.42
2.24
3.38
4.55
5.89
7.52
8.90
35.36
212.19
3036.00
0.07
0.0724
7.24
xcv
of
installations
considering
the
actual
number
of
Particulars
FY16
FY17
FY18
FY19
4448061
4596876
4771526
4.14%
3.97%
3.86%
Inflation index
7.24%
7.24%
7.24%
693.09
756.93
825.79
No. Of Installations
633.66
Since, the base year data includes the O & M expense inclusive of
contribution to the P & G Trust, the Commission has not considered
allowing contribution to the P & G Trust separately.
Thus, the Commission decides to approve the O&M expenses of
Rs.693.09 Crores for FY17, Rs.756.93 Crores for FY18 and Rs.825.79 Crores
for FY19.
5.2.9
Depreciation:
HESCOMs Proposal:
The HESCOM, in its application has claimed the depreciation for the
control period based on the following assumptions:
xcvi
are
is
considered
and
Depreciation
is
Particulars
FY17
FY18
FY19
Buildings
2.67
3.10
3.54
Hydraulics Works
0.10
0.12
0.14
0.09
0.11
0.12
38.51
44.63
51.04
148.2
Lines Cable Networks
196.4
171.83
Vehicles
0.58
0.68
0.77
0.25
0.29
0.33
Other Equipment
0.22
0.26
0.29
190.6
221.0
252.7
12.20
14.84
13.81
66.37
77.69
91.57
Total
Less withdrawals
Less assets (DCW &
Grants)
xcvii
112.1
128.4
147.3
Net Depreciation
thereon,
the
Commission
has
determined
the
Particulars
FY17
FY18
FY19
Buildings
2.89
3.07
3.27
Civil
0.17
0.18
0.19
Other Civil
0.12
0.12
0.13
38.93
41.58
44.49
xcviii
71.41
76.28
81.63
Vehicles
0.11
0.12
0.13
Furniture
0.14
0.15
0.16
Office Equipments
0.09
0.09
0.10
113.85
121.60
130.11
Approved Depreciation
xcix
TABLE 5.23
Interest on Capital Loans HESCOMs Proposal
Amount in Rs. Crores
Particulars
FY17
FY18
FY19
Opening balance
2446.21
2803.83
3219.13
901.05
838.55
827.55
Less repayment
543.43
423.25
381.52
2803.83
3219.13
3665.16
Average loans
2625.02
3011.48
3442.15
12%
12%
12%
315.00
361.38
413.06
Rate of interest in %
Interest on capital Loans
Particulars
Opening balance of capital Loans
Add new capital Loans
FY17
1235.27
FY18
1510.74
FY19
1725.42
Less Repayments
Total capital loan at the end of the
year
Average capital Loan
420.00
144.53
385.00
170.32
385.00
191.79
1510.74
1725.42
1918.63
1373.01
1618.08
1822.02
158.64
187.81
212.24
ci
Particulars
FY17
FY18
FY19
56.69
61.34
66.38
3647.52
3994.43
4317.28
36.48
39.94
43.17
992.98
1053.36
1119.06
1086.15
1154.64
1228.61
Rate of Interest
11.75%
11.75%
11.75%
127.62
135.67
144.36
consider base rate plus certain basis points depending upon the
tenure of the loan. As per the HESCOMs application, it is stated that
working capital loans for FY15 and FY16 has been availed at the rate of
interest ranging from 12.50% to 13%. The Commission notes that, the
cii
interest with spread of 250 basis points and noting the present interest
rate on working capital loan availed by HESCOM, the Commission
decides to allow short term loans at a normative interest of 12% for
FY17-19.
Accordingly, the approved interest on working capital loans for FY1719 are as follows:
TABLE 5.26
Approved Interest on Working Capital loans for FY17-19
Amount in Rs.
Crores
Particulars
FY 17
FY 18
FY 19
57.76
63.08
68.82
3641.95
3879.40
4154.80
36.42
38.79
41.55
One-sixth of Revenue
922.68
980.36
1030.83
1016.86
1082.23
1141.19
12.00%
12.00%
12.00%
122.02
129.87
136.94
ciii
Particulars
Projected Consumer security deposits
Rate of interest at bank rate
Proposed interest on consumer security deposits
FY17
678.65
8.75%
59.38
FY18
767.01
8.75%
67.11
FY19
866.88
8.75%
75.85
Particulars
Opening balance of consumer security deposits
Rate of Interest at bank rate to be allowed as per
Regulations
Approved Interest on Consumer Security Deposits
FY17
641.55
FY18
709.55
FY19
782.55
7.75%
52.36
7.75%
57.82
7.75%
63.67
civ
Particulars
FY17
FY18
FY19
158.64
187.81
212.24
122.02
129.87
136.94
0.00
0.00
0.00
52.36
57.82
63.67
333.02
375.50
412.85
This
Year
Particulars
FY17
Opening
Balance
Closing
Balance
Opening
Balance
Closing
Balance
Opening
Balance
Closing
Balance
FY18
FY19
Equity
(Networth)
GFA
Debt
3641.96
1235.27
(288.87)
3879.40
1510.74
(288.87)
3879.40
1510.74
(288.87)
4154.80
1725.42
(288.87)
4154.80
1725.42
(288.87)
4441.74
1918.63
(288.87)
cvi
Normative
Debt @
70% of
GFA
Normative
Equity @
30% of
GFA
%age
of
actual
debt
on
GFA
%age of
actual
equity
on GFA
2715.58
1163.82
38.94
Negative
2908.36
1246.44
41.53
Negative
3109.22
1332.52
43.20
Negative
From the above table it is evident that the debt equity lies within the
normative debt equity ratio of 70 : 30 on the closing balances of GFA
for each year of the control period. Further, the Commission will review
the same during the Annual Performance Review for each year based
on the actual data as per the audited accounts.
Accordingly, the Return on Equity that could be approved for FY17-19
works out as follows:
TABLE 5.31
Approved Return on Equity for FY17-19
Amount in Rs. Crores
Particulars
Paid Up Share Capital
FY17
FY18
FY19
934.49
934.49
934.49
(1189.36)
(1189.36)
(1189.36)
34.00
34.00
34.00
(288.87)
(288.87)
(288.87)
0.00
0.00
0.00
Share Deposit
Reserves and Surplus
Less Recapitalised Security Deposit
Total Equity
Approved Return on Equity
Since the networth of HESCOM is negative for all the three years of the
control period FY17-19, the Commission decides not to factor any
amount of return on equity for the control period.
5.2.16 Other Income:
HESCOMs proposal:
HESCOM has claimed other income for the control period as detailed
below:
TABLE 5.32
Other Income for FY17-19 HESCOMs Proposal
Amount in Rs.Crores
Particulars
FY17
27.94
Other Income
cvii
FY18
28.67
FY19
29.40
approve the other income for the control periods are as follows:
TABLE 5.33
Approved Other Income for FY17-19
Amount in Rs.Crores
Particulars
Other Income
FY17
148.49
FY18
155.70
FY19
163.70
cviii
5.3
The Commission notes that as per the Tariff Order dated 12 th May, 2014
the deficit of Rs.415.33 Crores for FY13 was determined duly factoring
the additional subsidy of Rs.186.51 Crores payable by the Government
of Karnataka. This deficit was included in the ARR for FY15. Further,
while approving the ARR for FY15, an amount of Rs.214.58 Crores was
set aside as regulatory asset to be recovered in the tariff over the next
two years (FY16 & FY17). The Commission decided to allow carrying
cost at 12% p.a on the regulatory asset to be assessed at the time of
Annual Performance Review for FY15 and FY16. However, in the present
APR for FY15, as discussed in the previous chapter of this Order, the
revenue earned was more than sufficient to meet the expenses during
FY15. The APR of FY15 indicates a surplus of Rs. 105.14 Crores.
Further, the Commission in its Tariff Order dated 2nd March, 2015 had
decided to carry forward a Regulatory asset of Rs.197.69 Crores being
determined as detailed below:
Amount
in
Rs Crs
214.58
597.00
442.02
369.56
166.45
Sl.
No
Particulars
cix
203.11
(5.42)
197.69
cx
TABLE 5.34
Approved ARR for FY17-19
Amount in Rs.Crores
Sl.
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
5.5
Particulars
FY17
FY18
FY19
2631.09
2905.01
5536.10
0.00
0.00
4317.97
611.37
4.13
4712.54
589.72
4.80
5214.91
650.08
5.21
4933.46
693.09
113.85
5307.06
756.93
121.60
5870.20
825.79
130.11
158.64
122.02
187.81
129.87
212.24
136.94
0.00
52.36
0.00
0.00
333.01
0.00
0.00
0.00
0.00
57.82
0.00
0.00
375.50
0.00
0.00
0.00
0.00
63.67
0.00
0.00
412.85
0.00
0.00
0.00
0.50
148.49
5925.43
105.14
-197.69
6017.97
0.50
155.70
6405.89
0.50
163.72
7075.73
6405.89
7075.73
Segregation of ARR into ARR for Distribution Business and ARR for Retail
Supply Business:
HESCOM in its application has not proposed any new ratio for
segregation of consolidated ARR into ARR for Distribution Business and
ARR for Retail Supply Business.
cxi
Distribution
Business
63%
84%
100%
0%
82%
84%
0%
Particulars
O&M
Depreciation
Interest on Loans
Interest on Consumer Deposits
RoE
GFA
Non-Tariff Income
Retail Supply
Business
37%
16%
0%
100%
18%
16%
100%
Sl.
No
1
2
3
4
5
6
Particulars
O&M Expenses
Depreciation
Interest & Finance Charges
Interest on Capital Loans
Interest on Working capital loans
Interest on consumer security deposits
NET ARR
cxii
FY17
436.65
95.63
FY18
476.86
102.15
FY19
520.25
109.29
158.64
28.76
0.00
719.68
187.81
30.69
0.00
797.51
212.24
32.51
0.00
874.29
TABLE 5.37
APPROVED ARR FOR RETAIL SUPPLY BUSINESS FY17 - 19
Amount
in
Rs.Crores
Sl.
No
1
2
3
4
5
6
7
8
9
10
Particulars
Power Purchase Cost
Transmission Charges
O&M Expenses
Depreciation
Interest & Finance Charges
Interest on Capital Loans
Interest on Working capital loans
Interest on consumer security deposits
Less Other income
Funds towards Consumer Relations/Consumer
Education
Total
5.6
FY17
4317.97
615.49
256.44
18.22
FY18
4712.54
594.52
280.06
19.46
FY19
5214.91
655.29
305.54
20.82
0
93.26
52.36
148.49
0
99.18
57.82
155.70
0
104.43
63.67
163.72
0.50
5205.75
0.50
5608.38
0.50
6201.44
cxiii
FY17
6017.97
10063.35
5.98
5536.10
(481.87)
cxiv
noted above.
cxv
CHAPTER 6
DETERMINATION OF TARIFF FOR FY17
6.0
6.1
Tariff Application
As discussed in the preceding Chapters, HESCOM has projected an
unmet gap in revenue of Rs.1102.36 Crores for FY17. In order to bridge
this gap in revenue, HESCOM, in its Tariff Application, has proposed a
tariff increase of 1002 paise per unit in respect of all the categories of
consumers.
6.2
The
cxvi
6.3
The distribution
cxvii
c) Differential Tariff:
Beginning with its tariff order dated 25th November, 2009 the
Commission has been determining differential retail supply tariff for
consumers in urban and rural areas. The Commission decides to
continue the same in the present order also.
6.4
Total FC to be
incurred
967.08
615.50
991.97
2574.55
From the above analysis, the Commission notes that as against total
fixed expenditure of Rs.2574.55 Crores, HESCOM is able to collect the
expenditure only to an extent of Rs.269.34 Crores, in the form of fixed
charges, at the existing rates. This accounts for recovery of only 10.46%
cxviii
cxix
KvAh basis for all the HT consumers. But, the required information has
not been submitted by HESCOM. In the absence of any scientific study
and failure on the part of HESCOM to furnish the require data along
with the financial implications, the Commission is unable to take any
decision in the matter and hence decides to continue the existing Kwh
billing system for all the HT consumers.
3. Other proposals:
HESCOM has made the following proposals:
a) Charge higher tariff to Kalyana Mantapas, where lavish wedding
are taking place.
b) Extend concessional tariff to RO drinking water supply units.
c) Concessional rate to Private irrigation installations under HT supply.
The Commission has examined the above proposals and notes that the
new proposals are not properly justified with financial implications and
hence, decides not to accept the proposals made.
6.5
cxx
TABLE 6.1
Revenue Deficit for FY17
Amount in Rs.Crores
Particulars
Approved Net ARR for FY17 including surplus of
FY15
Revenue at existing tariff
Deficit
Additional Revenue to be realised by Revision of
Tariff
Amount
6017.97
5536.10
(481.87)
481.87
LT-1 BhagyaJyothi
The existing tariff and the tariff proposed are given below:
Sl.
No
1
Details
Proposed by HESCOM
Energy Charges
(including recovery
towards service main
Charges)
If the
cxxi
*Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff payable by these
Consumers is shown as Nil. However, if the GOK does not release the subsidy in
advance, a Tariff of Rs.5.98 per unit subject to monthly minimum of Rs. 30/- per
Installation per month shall be demanded and collected from these consumers.
Fixed
For the first KW Rs.25
Charges
For every additional KW
per Month
Rs.35
Energy
Charges
0-30 units
0 to 30 units:270 paise/unit
( life line
Consumpti
on )
Energy
31 to 100 units:400paise/unit
Charges
exceeding 101 to 200 units: 540 paise
30 Units
/unit
per month
Above 200 units:640 paise
/unit
cxxii
Proposed by HESCOM
For the first KW Rs.25
For every additional KW Rs.35
Proposed by HESCOM
Commissions Decision
The Commission has decided to continue the two tier tariff in respect
of the domestic consumers as shown below:
(i) Areas coming under City Municipal Corporations and all Urban
Local Bodies
(ii) Areas under Village Panchayats.
cxxiii
Details
Energy Charges up to 30
Units per Month (0-30 Units)Lifeline Consumption
Energy Charges in case the
Consumption exceeds 30
units per month
Energy Charges
LT2
(b)
Private
Professional
and
other
Private
Educational
Proposed by HESCOM
Rs.35 per KW subject to a
minimum of Rs.65 per
month
For the first 200 units 702
paise per unit
For the balance units 822
paise per unit
cxxiv
Proposed by HESCOM
Rs.25 per KW subject to a
minimum of Rs.50 per
Month
Energy
Charges
Commissions decision
As in the previous Tariff Order, the Commission decides to continue the
two tier tariff structure as below:
(i) Areas coming under Municipal Corporations and all urban local
bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT 2 (b) (i) Private Professional and other Private
Educational Institutions, Private Hospitals and Nursing Homes
Applicable to areas under City Municipal Corporations and all urban
Local Bodies
Details
Energy Charges
Approved Tariff for LT 2 (b) (ii) Private Professional and other Private
Educational Institutions, Private Hospitals and Nursing Homes
Applicable in Areas under Village Panchayats
Details
Energy Charges
Applicable in areas under all Urban Local Bodies including City Municipal
Corporations
Details
cxxv
Proposed by HESCOM
Order
Rs.40 per KW
Rs. 40 per KW
Proposed by HESCOM
Rs. 55 per KW
Proposed by HESCOM
Rs.30 per KW
Proposed by HESCOM
Rs. 45 per KW
Commissions decision
As in the previous Tariff Order, the Commission decides to continue the
two tier tariff structure as below:
cxxvi
(i)
(ii)
Rs 65 per KW
For the first 50 units: 715paise /unit
For the balance units: 815 paise/unit
cxxvii
Proposed by HESCOM
Free (In case GoK does
not release the subsidy
in advance, CDT of 610
paise per unit will be
demanded
and
collected
from
consumers)
HESCOM
6017.97
2839.03
90.84
3178.94
54.32
3124.62
5619.82
5.56
cxxviii
does not release the subsidy in advance, a tariff of Rs.5.56 per unit shall
be demanded and collected from these consumers.
Approved by the Commission
LT-4 (a) Irrigation Pump Sets
Applicable to IP Sets up to and inclusive of 10 HP
Details
Approved by the Commission
Free*
Fixed charges per Month
Energy charges
CDT (Commission Determined Tariff):
556 paise per unit
* In case the GoK does not release the subsidy in advance, a tariff of
Rs.5.56 per unit shall be demanded and collected from these
consumers.
cxxx
cxxxi
Proposed by HESCOM
Rs. 30 per HP
Proposed by HESCOM
Rs. 20 per HP
Proposed by HESCOM
Rs. 30 per HP
Approved Tariff:
The Commission decides to revise the tariff in respect of these
categories as shown below:
LT-4 (b) Irrigation Pump Sets:
Applicable to IP Sets above 10 HP
Rs.40 per HP
280 paise/unit
Rs.30 per HP
280 paise / unit
Rs.40 per HP
280 paise/unit
cxxxiii
LT-5(a)- LT Industries:
Applicable to all areas under HESCOM
i) Fixed charges
Details
Fixed
Charges per
Month
Proposed by HESCOM
Description
Proposed by
HESCOM
Rs. 45 per KW of
billing demand
Rs. 60 per KW of
billing demand
Rs. 150 per KW of
billing demand
cxxxiv
Proposed by HESCOM
LT-5(b)- LT Industries:
Applicable to all areas under HESCOM
i) Fixed charges
Details
Fixed
Charges per
Month
Proposed by HESCOM
Description
Fixed
Charges
per Month
Above 5 HP and
less than 40 HP
40 HP and above
but less than 67 HP
67 HP and above
Proposed by
HESCOM
Rs. 45 per KW of
billing demand
Rs. 60 per KW of
billing demand
Rs. 150 per KW of
billing demand
cxxxv
Proposed by HESCOM
The
optional ToD will continue as existing for HT2(a), HT2(b) and HT2(c)
consumers with contract demand of less than 500 KVA. Further, for LT5
and HT1 consumers, the optional ToD is continued as existing.
The Commission has decided to continue with two tier tariff structure
introduced in the previous Tariff Orders, which are as follows:
i)
ii) LT5 (b): For areas other than those covered under LT5 (a) above.
Approved tariff:
The Commission approves tariff under LT-5(a) and LT-5(b) as given
below:
Approved Tariff for LT 5 :
Approved Tariff for LT 5 (a):
Applicable to areas under Municipal Corporations
i) Fixed charges
Details
cxxxvi
Fixed
i) Rs. 30 per HP for 5 HP & below
Charges per ii) Rs. 35 per HP for above 5 HP & below 40 HP
Month
iii) Rs. 40 per HP for 40 HP & above but below 67 HP
iv) Rs. 100 per HP for 67 HP & above
495 paise/unit
585 paise/ unit
615 paise/unit
Approved Tariff for LT 5 (b):
Fixed
i) Rs. 30 per HP for 5 HP & below
Charges per ii) Rs. 35 per HP for above 5 HP & below 40 HP
Month
iii) Rs. 40 per HP for 40 HP & above but below 67 HP
iv) Rs. 100 per HP for 67 HP & above
ii) Demand based Tariff (optional)
Fixed
Charges per
Month
cxxxvii
Approved tariff
485 paise/ unit
570 paise/ unit
600 paise/unit
Proposed by HESCOM
Rs. 35/HP/month
340 paise/unit
442 paise/unit
Proposed by HESCOM
Rs. 50/KW/month
602 paise/unit
502 paise/unit
Approved Tariff
Rs.45 /HP/month
cxxxviii
Energy Charges
390 paise/unit
Approved Tariff
Rs. 60/KW/month
550 paise/unit
450 paise/unit
Details
a) Less than 67
HP:
Proposed by HESCOM
Details
Proposed by HESCOM
Fixed Charges at Rs 40 per KW /month
Energy charges at 1002 paise / unit
Commissions Decision :
As decided in the previous Tariff Order the tariff specified for
installations with sanctioned load / contract demand above 67 HP
shall be covered under the HT temporary tariff category under HT5.
With this, the Commission decides to approve the tariff for LT-7
category as follows:
LT 7(a)
Details
Approved Tariff
Energy charges at 950 paise / unit
subject to a weekly minimum of Rs.170
per KW of the sanctioned load.
Details
Approved Tariff
Fixed Charges at Rs 50 per KW /month
Energy charges at 950 paise / unit
H.T. Categories:
Time of the Tariff (ToD)
The Commission decides to continue the mandatory Time of Day Tariff
for HT2(a), HT2(b) and HT2(c) consumers with a contract demand of
500 KVA and above. Further, the optional ToD will continue as existing
for HT2(a), HT2(b) and HT2(c) consumers with contract demand of less
than
500 KVA.
Sl.
No.
1
2
Details
Demand
Charges
Energy Charges
cxl
Proposed by HESCOM
Rs.180 / kVA for billing
demand / Month
512 paise per unit
Commissions decision:
cxli
Time of day
22.00 Hrs to 06.00 Hrs next day
06.00 Hrs to 18.00 Hrs
18.00 Hrs to 22.00 Hrs
9.
Proposed by HESCOM
Rs. 170 / kVA of billing
demand / month
cxlii
Demand Charges
Energy Charges
Proposed by HESCOM
Rs. 180 / kVA of billing
demand / month
657 paise per unit for all
the units
Commissions Decision
Approved Tariff
Rs. 180 / kVA of billing demand / Month
620 paise/ unit
660 paise/ unit
cxliii
Demand Charges
Energy Charges
HESCOMs Proposal:
The Existing and proposed tariff are as given below:
HT 2 (b)-HT Commercial- Applicable to all areas of HESCOM
Details
Demand Charges
Energy Charges
(i) For the first two
lakh units
(ii)For the balance
units
Commissions Decision
The Commission approves the following tariff for HT 2 (b) consumers:
Note: The above tariff under HT2 (b) is not applicable for construction of new
industries. Such power supply shall be availed under the temporary
category HT5.
cxliv
11.
Details
Demand Charges
Energy Charges
(i) For the first one lakh units
(ii) For the balance units
Details
Demand Charges
Energy Charges
(i) For the first one lakh units
(ii) For the balance units
Commissions Decision:
The Commission approves the following tariff for HT-2(c) consumers:
Approved tariff for HT 2 (c) (i)
Applicable to Government Hospitals, Hospitals run by Charitable Institutions,
ESI Hospitals, Universities and Educational Institutions belonging to
Government & Local Bodies, Aided Educational Institutions and Hostels of all
Educational Institutions.
Details
Demand Charges
Energy Charges
(i) For the first one lakh units
(ii) For the balance units
cxlv
Details
Demand Charges
Energy Charges
(i) For the first one lakh units
(ii) For the balance units
Energy
Charges/
minimum
Charges
Proposed by HESCOM
272 paise / unit
Subject to an annual
minimum of Rs. 1000
per HP / annum
Details
Fixed Charges
Energy Charges
cxlvi
Details
Fixed Charges
Energy Charges
Commissions Decision:
The Commission approves the following tariff for HT-3(a) consumers:
Approved tariff for HT 3 (a) (i)
13.
cxlvii
Proposed by HESCOM
472 paise / unit
subject to an annual
minimum of Rs.1000 per HP
of sanctioned load
Commissions Decision
The Commission approves the tariff for this category as indicated
below:
Approved Tariff
HT-3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Rubber, Coconut & Arecanut
Plantations:
Details
Energy Charges /
minimum Charges
Approved Tariff
400 paise / unit
subject to an annual minimum
of Rs. 1120 per HP of sanctioned
load
14.
HT-4- Residential Apartments/ Colonies:
HESCOMs Proposal:
The existing and proposed tariff for this category are given below:
Commissions Decision
cxlviii
of
billing
15.
Proposed
Rs.210/HP/Month for the
entire sanction load /
contract demand
Energy Charge
Commissions decisions:
cxlix
Energy Charges
6.6
Other Issues
6.6.1
HT
LT
HT
24.15 [7.50%]
80.50 [16.04%]
LT
80.50 [16.04%]
56.35 [7.50%]
Drawal Point
cl
719.68
10063.35
71.51
Paise/unit
21.45
50.06
cli
9.24
Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow
diagram furnished by HESCOM.
The actual wheeling charges payable (after rounding off) will depend
upon the point of injection & point of drawal as under:
paise/unit
Injection point
HT
LT
Drawal point
HT 22[5.90%]
LT 72[15.15%]
72[15.15%]
50[9.24%]
clii
ii.
Illustration:
If a transaction involves transmission network &HESCOMs network and
100 units is injected, then at the drawal point the consumer is entitled
for 81.91 units, after accounting for Transmission loss of 3.47% &HESCOM
technical loss of 15.15%.
The Transmission charge in cash as determined in the Transmission Tariff
order shall be payable to KPTCL & Wheeling charge of 72 paise per
unit shall be payable to HESCOM. In case more than one ESCOM is
involved the above 72 paise shall be shared by all ESCOMs involved.
iii.
cliii
Illustration:
If a transaction involves injection to BESCOMs network & drawal at
HESCOMs network, and 100 units is injected, then at the drawal point
the consumer is entitled for 84.85 units, after accounting HESCOMs
technical loss of 15.15%.
The Wheeling charge of 72 paise per unit applicable to HESCOM shall be equally
shared between HESCOM& BESCOM.
6.6.5 CHARGES FOR WHEELING OF ENERGY BY RE SOURCES (NON-REC ROUTE
) TO CONSUMERS IN THE STATE
The separate orders issued by the Commission from time to time in the
matter of wheeling and banking charges for RE sources (non-rec route
) wheeling energy to consumers in the State shall be applicable.
6.7
Voltage
Level
66KV &
HT-1
HT-2a
HT-2b
HT-2C
HT-4
HT-5
139.76
222.54
124.31
62.69
504.64
549.41
cliv
above
HT level11KV/33KV
139.76
222.54
124.31
62.69
504.64
HT-2
(C)
HT3 (a)
Lift
Irrigation
HT3 (b)
Irrigation &
Agricultural
Farms
HT-4
Residential
Apartments
902.87
735.25
181.60
398.01
625.67
1509.97
565.04
565.04
565.04
565.04
565.04
565.04
565.04
-66.23
156.66
337.83
170.21
-383.44
-167.03
60.63
944.93
607.04
607.04
607.04
607.04
607.04
607.04
607.04
607.04
-108.22
114.66
295.83
128.21
-425.44
-209.03
18.63
902.94
HT-1
Water
Supply
HT-2a
Industries
HT-2b
Commercial
498.81
721.70
565.04
HT5
Temporary
HT-1
HT-2a
HT-2b
HT-2c
HT-3a
HT-3b
HT-4
HT-5
118
253
128
45
709
clv
HT level-11
kV/33kV
86
222
96
14
677
clvi
21.10.2010.
viii)
6.8
clviii
6.9
6.10
clix
tariff by 18.34%.
Time of the day tariff which was made mandatory in the previous
Tariff Orders for installations under HT2 (a), HT2(b) and HT2(c) with
contract demand of 500KVA and above is continued in this Order.
clx
6.11
Commissions Order
1. In exercise of the powers conferred on the Commission under
Sections 62, 64 and other provisions of the Electricity Act, 2003, the
Commission hereby determines and notifies the retail supply tariff of
HESCOM for FY17 as stated in Chapter-6 of this Order.
2. The tariff determined in this order shall be applicable to the
electricity consumed from the first meter reading date falling on or
after 1st April, 2016.
3. This Order is signed dated and issued by the Karnataka Electricity
Regulatory Commission at Bengaluru this day, the 30th March, 2016
clxi
APPENDIX
ISSUE OF NEW DIRECTIVES AND
REVIEW OF COMPLIANCE OF DIRECTIVES ISSUED BY THE
COMMISSION
1.
the
Conditioners,
commercial
and
Fans,
Refrigerators
industrial
etc.,
installations.
Also,
in
domestic/
use
of
LED
in all the
of
Energy
Efficiency
five
star
rating)
rated
Air
clxiii
The
Commission
had
in
its
earlier
tariff
orders
and
other
Nature of
Service
Standards of
performance
(indicative
minimum time
limit for
rendering
services)
Primary
responsibility
centers where
to lodge
complaint
Next higher
Authority
Amount
payable to
affected
consumer
The HESCOM shall implement the above directives within one month
from the date of the order and report compliance to the Commission
regarding the implementation of the directives.
Compliance by the HESCOM
clxiv
information of consumers .
Further, action has been taken to display the coloured window size
sticker posters in Kannada in the premises of section offices and subdivision offices to draw the attention of the consumers visiting the
offices.
The HESCOM will also stress on the consumer education campaign in
order to create awareness among the consumers regarding the
services extended by the HESCOM.
Commissions Views
The Commission notes that the HESCOM has complied with the
directive
by
displaying
the
details
of
specified
Standards
of
clxv
clxvi
Commissions Views:
The Commission notes that the HESCOM has provided safety gadgets to
its linemen and also taken action to procure/provide additional safety
tools required for the linemen in the field. It is important that the
HESCOM should continue to focus on safety aspects to reduce the
number of electrical accidents occurring in the distribution system due
to negligence on the part of the field staff and also non-adherence of
safety procedures by them while working on the network. It is also
necessary that the frequency of imparting training to linemen should be
increased so that adherence to safety aspects becomes part of their
routine.
The Commission reiterates its directive that the HESCOM shall ensure
that all the linemen in its jurisdiction are provided with proper and
adequate safety gear and the linemen use such safety gear provided
to them while working on the network. The compliance in this regard
shall be submitted once in a quarter to the Commission regularly.
clxvii
clxviii
regard, the HESCOM has already collected the data regarding the
number of timer switches required to be installed and it is found that
around 18,500 timer switches are required. The HESCOM will take
necessary action to see that the timer switches are installed at the
earliest and compliance in this regard will be submitted to the
Commission shortly.
Commissions Views
The Commission notes that the HESCOM so far has not installed timer
switches to streetlight installations in its jurisdiction.
The Commission
should install the timer switches at their cost and later recover it from
the local bodies. Persuading the local bodies to fix timer switches at
their own cost availing funds / grants received from Government and
other agencies for such programmes / works should also be explored
seriously.
clxix
The Commission had directed that the ESCOMs shall make every effort
to minimize inconvenience to consumers strictly complying with the
above directions. The Commission had indicated that it would review
the compliance of directions on a monthly basis for appropriate orders.
clxxi
Commissions Views:
The Commission observes that the HESCOM is not submitting its
projections
of
availability
and
demand
for
power
and
any
clxxii
the consumers through SMSes regarding the time and duration of load
shedding. This has to be expedited as the consumers need to be
informed through SMSes in addition to notifications in newspapers
/media regarding load shedding due to reasons such as system
constraints, breakdown of lines/equipment, maintenance etc. This
would address significantly the consumers dissatisfaction on this issue.
Further, it is also necessary to avoid load shedding involving the same
sub-stations/feeders; the same should be on rotation basis to avoid
inconvenience to consumers/public.
The Commission reiterates that the HESCOM shall comply with the
directive on load shedding and submit monthly compliance reports to
the Commission regularly.
v.
clxxiii
track
the
complaints.
The
HESCOM
has
been
publishing
clxxiv
All complaints are being received at the Centralized Call Centre only.
Each and every complaint is received on a helpline telephone number
by the desk operator and registered with a unique complaint Id which
the same is intimated to the consumers. The complaints are then
transferred online to the concerned section officer for resolving the
same. The reports are generated on a daily / monthly basis by
indicating the number / nature of complaints received /tracked and
monitored till its closure.
The HESCOM has directed all the concerned officials to accord top
priority for prompt/ speedy action in attending / resolving the
consumer complaints.
The HESCOM is conducting Consumer Interaction Meetings once every
two months at subdivision levels regularly and 60 such meetings have
been conducted during the current year. Further, the officials have
been directed to send personal invitation to the consumers to attend
the meetings and provide snap shots of the proceedings of the
meetings so as to enable to host on HESCOMs website.
The HESCOM has provided 464 linemen and 51 vehicles to service
stations to effectively deal with the consumer complaints relating to
restoration of supply of power.
Commissions Views:
The Commission notes that the HESCOM has taken certain measures
for redressal of consumer complaints but, it is necessary to take further
measures in this regard for effectively deal with consumer complaints
relating to supply of electricity. The HESCOM should continue to focus
on improving the consumer services and further reduce the consumer
complaint downtime to ensure prompt services to the consumers. The
HESCOM should ensure prompt response to consumer complaints
about
interruptions
in
power
clxxv
supply
due
to
breakdown
of
clxxvi
In this
a)
b)
c)
d)
>15%<=20
%
Below 15%
clxxvii
>20%
<=25
%
>
25%
FY15
FY16 (up to
Sept2015)
Nippani
Rabkavi,
Bagalkote
It can be seen from the above that, for the FY15, out of 16 towns the
loss levels in 15 towns are less than 15 per cent. In the FY16, out of 16
towns, the loss levels in 14 towns are less than 15 per cent. Action will
be taken to bring down the losses to less than 15 per cent in Rabakavi
and Bagalakote during the remaining period of the FY16.
Action plan for reduction of high T&D and AT&C losses outlined as
below.
clxxviii
As per the recent guidelines of the GoK, measures have been taken/
proposed
to
regularize
un-authorized
IP
sets
and
providing
is
nearing
completion.
When,
all
the
feeders
are
DTC Metering:
The project consists of supply, installation, commissioning, and
maintenance of composite thread through type meter box of class 1.0
with LT Electronic Tri-Vector Meter having AMR compliant with
associated CTs, Modem and other materials for DTC metering works
under competitive bidding is taken up. It covers supply, erection and
maintenance up to 5 years, in the non-RAPDRP town areas and rural
areas.
clxxix
clxxx
Commissions Views:
The Commission notes that the HESCOM has not submitted regularly
the monthly analysis of energy audit conducted in cities/towns
regularly. As seen from the consolidated energy audit statement for
the FY15 and for the period from April to September 2015, 3 of the 16
towns have distribution losses more than the mandated 15 per cent.
The Commission also notes that the HESCOM has initiated certain
measures to reduce the distribution losses and improving collection
efficiency to achieve the mandated losses of less than 15 per cent.
However, further remedial measures need to be continued to bring
down the loss figures well below the targeted levels. The HESCOM is
directed to initiate suitable measures to further bring down the loss
levels.
The Commission further notes that the DTC metering is completed for
18,235 DTCs out of the 22,693 DTCs in respect of 25 towns where
RAPDRP scheme is taken up. But, in spite of providing meters to
considerably a large number of DTCs, the HESCOM has not taken up
comprehensive energy audit reportedly due to erroneous data
/defects in R-APDRP Go-live system. There has been an inordinate
delay in tagging of consumer details with the feeders/DTCs by the
HESCOM. In fact, the HESCOM during the ESCOMs Review meetings
held in the Commission had committed to complete this exercise
before August 2014, but the progress achieved so far is not
satisfactory.
The HESCOM is directed to complete 100 per cent DTC metering along
with consumer indexing to take up energy audit of DTCs for which
meters have already been installed and to initiate corrective measures
for reducing distribution losses wherever they are above the standard
level. The compliance in respect of DTC wise energy audit conducted
clxxxi
with analysis and the remedial action initiated to reduce loss levels
shall be submitted every month regularly to the Commission.
Further, the HESCOM is directed to submit to the Commission the
consolidated energy audit report for the FY16, as per the formats
prescribed by the Commission, vide its letter No: KERC/D/137/14/91
dated 20.04.2015, before 15th May 2016.
Commissions Views:
The Commission has been directing the ESCOMs to identify one subdivision in each ESCOM with high LT/HT ratio and high distribution loss
levels, so that substantial loss reduction could be achieved by
implementing the HVDS in such subdivisions. Further, with a view to
bring down the cost of implementation of HVDS, the Commission also
issued revised guidelines to all the ESCOMs to implement HVDS in
subdivisions/feeders
having
the
highest
distribution
losses.
The
clxxxiii
clxxxiv
action has been taken to ensure that NJY feeders are not tapped
illegally for operating IP sets. Further, M/s CPRI have furnished the
analysis reports in respect of some of the completed NJY feeders. The
report is submitted to the Commission.
Computation of IP consumption:
The HESCOM has 810 numbers of segregated agricultural feeders as at
the end of September, 2015. However, computation of IP set
consumption is made on the bases of exclusive IP feeder consumption,
wherever such feeders are more in numbers. In other cases, where
bifurcation is yet to be completed assessment IP set consumption is
being done on the basis of readings of meters fixed to DTCs feeding
predominant IP set loads.
Commissions Views:
The Commission notes that the HESCOM is yet to commission all the
feeders, both under NJY phase1 & 2 for which the segregation work
has been completed in all respects. The progress achieved in
clxxxv
Further, the Commission has noted that the HESCOM has carried out
the performance analysis of feeders commissioned under NJY
indicating the benefits accrued to the system in terms of reduction in
failures of distribution transformers, improvement in tail-end voltage
and improvement in supply/reduction in interruptions and increase in
metered consumption. The analysis reveals that there is overall
improvement in supply condition after implementation of NJY besides
benefiting the consumers in rural area resulting in a positive socioeconomic impact. The analysis also reveals that post implementation
of NJY; the consumers are satisfied as the numbers of hours of
availability of power has increased.
clxxxvi
ix.
In view of the urgent need for conserving energy for the benefit of the
consumers in the State, the Commission had directed the HESCOM to
take up replacement of inefficient pumps with energy efficient pumps
approved by the Bureau of Energy Efficiency, at least in one subdivision in its jurisdiction.
Compliance by the HESCOM:
clxxxvii
Observations
The bill raised by M/s EESL towards 5 feeders was amounting to Rs.10.23
Lakh based on 95 per cent of savings. One hour consumption of old
pump set has been measured by power analyzer i.e., rating of pump
sets carried out for 99 pump sets in respect of Benadi IP feeder in
Nippani sub-division.
The power recorded in respect of old pump was 608.36 kW. The
consumption per month was 608.36 KW x 6 hrs x 30 days=109,505
units per pump set.
Specific
consumption
allowed
by
the
KERC=8,244
units/12
clxxxviii
Commissions Views:
The Commission notes that the HESCOM is implementing a pilot project
of DSM in agriculture in Nippani and Byadgi sub-divisions. It is observed
that not much progress has been achieved in this regard except
completion of replacement of 590 existing pumps. It appears that the
work is moving at a slow pace which needs to be expedited to reap
the expected benefits by implementing this project. It is important to
see that all the balance works relating to this project are expedited so
that the work is completed in a time bound manner and the farmers
are able to avail the benefits of this scheme.
Further, the HESCOM should also give emphasis on implementation of
DSM measures in the other parts of its jurisdiction in order to conserve
energy and also precious water for the benefit of farmers. The HESCOM
should focus its attention on implementation of DSM measures by
necessary coordination with all the stakeholders concerned to arrive at
an early agreement on a crucial measurement and verification
methodology to move forward for maximizing the benefits and scaling
up the same in whole of its jurisdiction.
The Commission during its review meetings with the ESCOMs held in the
Commission has been directing them to initiate DSM measures in any
one sub-division/taluk in order to assess the results of such measures
before scaling up in whole of its jurisdiction. The HESCOM is directed to
expedite the implementation of DSM project in Nippani and Byadgi
sub-divisions and complete at the earliest. The compliance thereon
shall be submitted to the Commission within three months from the date
of this order.
x.
clxxxix
cxc
No. of BPL
households
proposed to be
electrified under
DDUGJY
Sl.
No.
Name of the
District
No. of unelectrified
households as per
Census 2011
Uttara
Kannada
24,529
22,680
20,510
Haveri
31,059
13,360
9,020
3
4
5
6
7
Gadag
Dharwad
Bijapur
Bagalkot
Belgaum
Total
27,070
10,489
9,611
43,478
1,24,951
2,71,187
21,946
10,489
69,611
34,885
1,16,495
2,89,466
21,946
10,142
13,176
12,739
78,018
1,65,551
1.3.
Electrification of 83 rural households in Mettinagadde and 13 unelectrified habitations in Honnavar Taluk is proposed under this
project.
cxci
Commissions Views:
The Commission observes that only a meager progress is achieved in
electrification of BPL households by the HESCOM. It is seen that most of
the electrification works are either in proposal stage or execution stage
and in fact, for 2,26,670 households, the HESCOM is yet to formulate a
scheme. The HESCOM needs to expedite electrification of households
with the seriousness this matter deserves. The electrification of
households has remained stagnant for the last many years leaving vast
numbers of households in the remote areas remain without basic need
of electricity. The programme should be implemented within in a time
frame to ensure that the people are provided with the basic need of
electricity at the earliest.
cxcii
un-electrified
households
in
its
jurisdiction
and
submit
households
within
the
targeted
time
fixed
by
the
xi.
cxciii
cxciv
Commissions Views:
The Commission notes that, the ESCOMs have expressed their difficulty
in introduction of SBU concept in their O & M divisions / sub divisions due
to implementation issues in the field. The Commission recognizes the
problems associated with implementation of SBU concept.
As an
xii)
cxcv
From the analysis, it is seen that the major causes of these accidents
are due to snapping of LT/HT lines, accidental contact with live
LT/HT/EHT
lines,
hanging live
wires
around
the
electric
poles
cxcvi
1.4.
Every year, budget provision is made for preventive measures to
reduce accidents. As a result, the number of accidents in some districts
has come down.
Commissions Views:
The Commission observes that despite the HESCOM taking various
remedial measures including rectification of hazardous installations in
its network, the number of fatal electrical accidents involving both
human and livestock has only increased which is of a serious concern.
This indicates that identification and rectification of all hazardous
installations is not completed.
cxcvii
1.5.
1.6.
1.7.
1.8.
The Commission, during the Review meetings held with the ESCOMs
has been prompting the ESCOMs to take up periodical preventive
maintenance works, install LT protection to distribution transformers,
conduct regular awareness program for public on electrical safety
aspects in use of electricity and also about ensure use of safety tools
and tackles by their field staff besides imparting necessary training to
field staff at regular intervals. The HESCOM shall take effective steps to
achieve this.
1.9.
1.10.
The Commission therefore reiterates its directive that the HESCOM shall
continue to take necessary measures to identify and rectify all the
hazardous locations/installations prevalent in its distribution system and
cxcviii
cxcix
APPENDIX
-I
Objections related to Tariff Issues - MESCOM
Sl
No.
1
Objections
Replies by Licensee
does
not
decreasing
HESCOM
correspond
to
fuel
has
considered
the
prices.
a
linear
The
requirement
for
FY-15
Rs.145.82 crore. The short term/medium submitted by HESCOM was based on the
term power procurement over and projections which are bound to change
above the quantum approved in the when the demand for power purchase
tariff order and purchased at rates increases compared to the approved
exceeding the ceiling rate approved by quantum. In view of growing demand for
the Commission to the tune of Rs.17.96 power the distribution companies are
Crores should be disallowed.
cc
The
Commission also notes that PCKL is indeed procuring power at exchange at lower
prices.
3
The
allowable
weighted
average inflation index is 7.22% for 201415 and 7.25% for 2016-17. Considering
the actual O&M expenses for 2013-14
without contribution to Pension and
Gratuity Trust, three year compounded
annual growth rate (CAGR) of the
number
of
installations,
the
actual
inflation
factor
2%,
of
factor,
the
efficiency
normative
O&M
O&M
expenses
on
cci
and
Rs.522.33
crore
as
against
The
consumer
security
deposits
are
utilized
the
consumer
deposit as working capital and has deposit collected from the consumer in
deprived the consumers of a reduction any kind of interest bearing securities. The
in the ARR through interest earning on MYT regulations in Karnataka do not
the security deposits. HESCOM is double specifically mention about reduction of
charging the consumers by claiming security deposit from the working capital.
interest
on
working
capital
without
Deposit)
Regulations,
2005.
ccii
Commission.
6
Commission's Views: This issue has been suitably dealt with in this Tariff Order.
7
Government
has
to
release
by
the
Commission.
of
supply.
HESCOM
wants
subsidized
Any
to
category
benefit
confer
which
to
the
beyond
the
Government
subsidy
and
is
determined
on
the
basis
of
problems
in
adopting
this
cciii
order as well. The voltage wise cross subsidy levels have also been indicated in the
tariff order, as directed by the Honble ATE.
9
10
for
expenditure
Meter
in
projected
rental
charges
the
by
capital
HESCOM,
would
entail
HESCOM
has
published
in
newspaper that, it has achieved a profit Rs.1.02 per unit by factoring the annual
of Rs.132.26 Crores during FY15 and that revenue requirement and the expected
cciv
there will be no deficit in 2016 as per revenue and to make good the gap of
tariff order dated 02.03.2015. Hence, the Rs.1102.36 Crores. The profit of Rs.132.26
proposal
to
hike
tariff
should
be crores
rejected.
has
been
deducted
while
Commission's Views: The Commission has dealt with the matter appropriately in this
Tariff Order.
12
replies
are
given
when
approached.
Commission's Views. This is not an issue relating to tariff.
15
per
IP
set
charges is a burden to the farmers who HESCOM will bring the request to the
have IP sets of 1 to 2 HP capacity and notice of the Government for suitable
hence, the charges should be reduced action.
to Rs.1000/- per IP set.
Commission's Views: The reply furnished by the HESCOM is acceptable.
16
Levy of both fixed charges and energy Fixed charges are collected on the basis
charges in the bill is not proper, instead, of fixed assets
of the
licensee
and
the fixed charges should be deducted charged from the consumers to improve
from the energy charges in the bill.
ccv
The
tariff
discrimination
between
HESCOM
has
published
the
tariff
ccvi
20
87%
to
100%.
installations,
cases
are
Rs.454 Crores is
for
installing
meters
to
unmetered BJ/KJ installations should be The proposal of capex of Rs.2 Crores is for
disallowed as the EA 2003, provides that, installing meters to very old installations for
no
power
without
supply
meter
and
should
be
when
given which
meters
were
not
fixed
while
HESCOM has made a willful default by HESCOM is in a financial crisis and hence
paying interest for late payment of bills could not pay the power bills of KPCL in
to an extent of Rs.140 Crores and the time.
same should be disallowed.
payments
ccvii
and
the
same
has
been
claimed by HESCOM.
Commission's Views: The Commission is not allowing any interest on the delayed
payment of power purchases in the ARR.
23
HESCOM
has
incurred
capital
capex
in
NJY
and
be quantified.
Commission's Views HESCOM has submitted the reasons for the variations in actual
capex as against approved figures. The Commission is also conducting prudence
check of the capex before allowing interest and depreciation on the capitalized
assets.
24
there
are
28
pending in which Rs.5.97 Crores has to the Appellate authorities for resolving the
be
should
take
measures
for
disposal of cases.
Commission's Views: the Commission directs HESCOM to speed up the process.
25
As required under the Tariff Regulations, HESCOM has published its tariff petition,
HESCOM
has
not
published
the the
effect
of
true
up
of
FY14,
accounts for Base year, ensuing year consequential true up of FY15 and deficit
and control year.
for FY17.
been
wrongly
accounted
as
to
FY17
and
HESCOM
Commission's Views: The Commission has suitably dealt with this issue in this Order.
ccviii
has
27
on
actual
consumption,
the
Commission's Views: The Commission has suitably dealt with this issue in this Order.
28
MU
for
FY17.
The
actual
HESCOM
has
arrived
consumption
readings
based
of
the
at
the
on
the
DTCs
IP
set
meter
predominantly
Commission's Views: The Commission has suitably dealt with this issue in this Order.
Necessary directions have been issued to the HESCOM in the matter.
29
does
not
accept
for
the
be reduced on prorata basis for the proposal of prorata decreasing the fixed
duration
of
load
shedding.
Commission should reject the increasing for the creation and maintenance of the
the FC proposed by HESCOM as there is distribution system assets of HESCOM.
no basis for such claims.
Commission's Views: The fixed charge is being incurred by ESCOMs irrespective of the
quantum of energy supplied and has to be recovered.
30
HESCOM
was
unable
to
furnish
the
Commission's Views: The Commission has suitably dealt with this issue in this Order.
31
commensurate
the
ccix
with
32
of
Central
Government
for
HESCOM
is
utilizing
the
Central
petition
is
filed
within
the
time
of
efficiency
gains
to
the
The
Commission
has
been
issuing
Commission's Views: The sharing of gains and losses have been dealt with suitably in
this Tariff Order.
35
As per the tariff policy the tariff to be Due to difference in average cost of
fixed should be within +/- 20 % of the supply for different consumer categories,
cost to serve. Since the cost to serve of bringing tariff in line with the tariff policy
HESCOM has not been approved by the norms of +/- 20% has to be achieved in a
ccx
in
heavy
burden
on
some
consumers.
Commission's Views As directed by the Honble ATE, the Commission has endeavored
to reduce the cross subsidy gradually which is reflected in the current order as well.
The voltage wise cross subsidy levels have also been indicated in the tariff order, as
directed by the Honble ATE.
36
industrial
categories
contribute
cross
Commission's Views: The Commission has suitably dealt with this issue in this Order.
38
Commission's Views The Commission has suitably dealt with this issue in this Order.
ccxi
39
and
hence
the
petition
is
incomplete.
Commission's Views The Commission has suitably dealt with this issue in this Order.
40
energy
charges
and
consumption.
Commission's Views: The Commission has suitably dealt with this issue in this Order.
41
42
HESCOM has not paid remuneration to HESCOM is paying the remuneration as
the non-official member of CGRF.
per norms.
has
not
provided
any
tremendous
scope
in
load
ccxii
investment
on
its
own.
However,
Commission would
The
interest
rate
on
late
There
are
no
separate
estimates
may
to
either
require
out
proper
carry
voltage
wise
distribution
losses.
Commission's Views: The Commission is issuing directives on energy audit and voltage
wise loss segregation.
46
An
appropriate
roadmap
for
ccxiii
realistic time frame should be laid. The fix the meters to remaining unmetered
road
map
should
provide
by
the
Licensee
HESCOM has failed in implementing SoP Consumers can file complaints against
Regulations.
the
officers
of
HESCOM
and
claim
Commission's Views: This issue has been dealt separately in this order.
49
HESCOM has to reduce distribution loss As the length of the LT lines supplying
from 17% to 10% by reducing LT line power to IP Sets and rural areas is more,
length, adding DTCs, installing shunt the distribution loss is more. The loss will be
capacitors,
conducting
NJY Scheme.
Commission's Views: Necessary directions have been issued to the HESCOM in the
matter.
50
HESCOM has not conducted consumer HESCOM will take action against the
interaction meetings as directed by the officers who have not conducted the
Commission.
consumer meetings.
will
take
steps
to
reduce
loss due to electrical accidents are to be accidents and the compensation is paid
compensated adequately.
as per rules.
Commission's Views: This issue has been dealt separately in this order.
ccxiv
52
Tendering
HESCOM is yet to electrify several unelectrified households in Uttarkannada
District.
process
is
initiated
for
Karwar
and
Sirsi
divisions.
For
The sales proposed at 5.57% to 7.66% by Based on the demand for energy during
HESCOM cannot be achieved, if the the past 4-5 years and increase in the
interruption
and
load
shedding
continued.
HESCOM has shown an efficiency factor The efficiency factor is fixed by the
of 2% in O&M cost without any basis.
Commission.
to
consumers
under
SoP
The
compensation
provided
to
the
In
the
absence
of
publication
guidelines about vigilance activities, the 2003, action is taken in case of theft of
public are put to hardship by the energy. Suitable action will be taken after
vigilance raids.
about
the
scheduled
load
to,
only
under
inevitable
circumstances.
ALDC which will help in monitoring of ALDC (Area load Despatch Centre) is
loads is not operational in HESCOM
ccxv
has
not
educated
the
The
HESCOM is
conductors are snapping even without checked by TA & QC wing and other third
rainfall and transformers are failing within party agencies.
3 months.
Commission's Views: The reply furnished is reasonable.
61
The inventory of assets updated by the The asset registers are maintained in
officers is not being cross verified by the division offices and audited regularly by
higher officers.
The
meter
provided
readers
with
of
uniforms
HESCOM
and
are
identity
Specific requests
63
ccxvi
implementation of ToD.
Commission's Views.
demand. As per the existing TOD structure, penalty is being levied for consumption
during 6 PM to 10 PM and incentive is being extended for consumption during 10 PM
to 6 AM. There is no case for review of ToD for the present.
64
pay bills.
Commission's Views The reply furnished is acceptable.
65
of
subsidy
amount
to
the
the subsidy amount released by consumer account is not possible as, the
is
the
tariff
paid
by
the
Sri Praveen Sood, IPS, Additional Director All offices are categorized under LT3,
General
of
Police,
ccxvii
Bengaluru, has requested to include If police stations are brought under LT2 (a)
police stations under LT2 (a) category category, there will be disparity among
instead of LT3 category considering the offices and loss of revenue to HESCOM.
nature of service rendered by the Police
to the citizens.
Commission's Views: The reply furnished by the HESCOM is in order.
69
present
categorization
is
proper.
and brought under LT3 category and However, the Commission may take a
Cinema halls should be brought under view in the matter,
LT5 category.
Commission's Views: The current categorization of tariff is in order.
70
71
mantapa
as
marriages
are
comman man.
Commission's Views: The Commission has appropriately dealt with the matter in this
order.
72
like
raids.
meter
The
testing
exact
and
load
on
ccxviii
The gist of the submissions made during the Public Hearing, held on
03.03.2016.
1
Overhead
conductors
should
the
The
interruption
on
Kumta
to
ccxix
The
consumer
should
be
informed
Since
10%
supervision
charge
is
without
11
The
problems
associated
with
the
13
14
ccxx
16
programmes
are
not
proportionate
to
the
high
19
20
21
rectified
by
installing
additional
transformers.
22
23
ccxxi
ANNEXURE - I
ESCOMS TOTAL APPROVED POWER PURCHASE FOR FY17
ENERGY
ALLOWE
D (MU)
CAPACIT
Y
CHARGES
(RS Cr)
ENERGY
CHARG
ES (RS
Cr)
TOTAL
COST
(RS Cr)
7538.53
619.64
2327.80
2947.44
3.91
PER UNIT
RATE
(RS/
Kwh)
1510.85
211.06
454.42
665.49
4.40
2823.10
295.60
1035.95
1331.55
4.72
3054.06
444.06
1014.43
1458.49
4.78
2720.23
0.00
849.12
849.12
3.12
17646.77
1570.36
5681.72
7252.08
4.11
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
3246.74
197.69
739.53
937.23
2.89
N.T.P.C-RSTP-III (1X500MW)
819.69
75.28
192.48
267.76
3.27
NTPC-Talcher (4X500MW)
2765.03
213.25
400.36
613.61
2.22
1490.74
226.09
363.15
589.24
3.95
1081.78
174.91
222.18
397.09
3.67
950.35
68.49
228.93
297.41
3.13
1280.64
105.25
308.49
413.73
3.23
731.33
90.16
182.73
272.90
3.73
865.82
111.21
199.16
310.37
3.58
1442.76
185.27
371.08
556.34
3.86
CGS SOURCES
MAPS (2X220MW)
249.31
0.00
49.86
49.86
2.00
922.44
0.00
274.89
274.89
2.98
1001.80
0.00
298.54
298.54
2.98
1527.09
0.00
455.07
455.07
2.98
1574.83
274.91
360.39
635.30
4.03
1574.83
261.62
349.87
611.49
3.88
TOTAL CGS
21525.17
1984.13
4996.71
6980.84
3.24
7462.68
1325.73
1767.94
3093.67
4.15
4203.20
20.49
182.11
202.60
0.48
180.68
2.32
17.79
20.11
1.11
527.47
24.38
55.93
80.30
1.52
2923.95
19.16
229.11
248.27
0.85
1087.86
11.82
129.40
141.22
1.30
523.72
27.51
80.48
107.99
2.06
ccxxii
65.15
1.14
29.76
30.90
4.74
355.25
19.15
47.57
66.72
1.88
325.56
12.00
34.43
46.42
1.43
91.67
1.96
14.77
16.74
1.83
310.76
3.54
27.46
31.00
1.00
109.63
0.43
8.68
9.11
0.83
10704.90
143.90
857.48
1001.38
0.94
111.61
65.09
0.00
65.09
5.83
32.47
2.64
0.00
2.64
0.81
144.08
67.73
0.00
67.73
4.70
1108.80
0.00
558.84
558.84
5.04
3826.75
0.00
1368.74
1368.74
3.58
12.86
0.00
4.32
4.32
3.36
MINI HYDEL-IPPS
1344.12
0.00
450.45
450.45
3.35
CO-GEN/CAPTIVE
172.09
0.00
65.02
65.02
3.78
BIOMASS
196.60
0.00
97.72
97.72
4.97
SOLAR-IPP
1261.40
0.00
784.50
784.50
6.22
32.89
0.00
19.63
19.63
5.97
6846.71
0.00
2790.38
2790.38
4.08
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
TOTAL NCE
TRANSMISSION CHARGES
PGCIL CHARGES
949.21
949.21
0.44
KPTCL CHARGES
3092.77
3092.77
0.47
19.99
19.99
0.003
20715.0
2
25806.8
9
3.94
65439.11
5091.87
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGES
(RS Cr)
6696.43
560.42
2109.13
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
3.99
1603.00
221.33
480.87
702.20
4.38
3241.00
330.35
1213.08
1543.43
4.76
3294.00
472.15
1116.01
1588.16
4.82
ccxxiii
4489.07
459.67
1429.28
1888.95
4.21
19323.50
2043.91
6348.37
8392.29
4.34
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
3246.74
197.69
754.32
952.02
2.93
N.T.P.C-RSTP-III (1X500MW)
819.69
75.28
196.33
271.61
3.31
CGS SOURCES
NTPC-Talcher (4X500MW)
2765.03
213.25
408.37
621.62
2.25
1490.74
226.13
370.41
596.55
4.00
1081.78
176.33
226.63
402.96
3.72
950.35
68.49
233.50
301.99
3.18
1280.64
105.25
314.66
419.90
3.28
731.33
90.16
186.39
276.55
3.78
865.82
111.21
203.14
314.36
3.63
1442.76
185.27
378.50
563.77
3.91
MAPS (2X220MW)
249.31
0.00
50.86
50.86
2.04
922.44
0.00
280.39
280.39
3.04
1001.80
0.00
304.51
304.51
3.04
1527.09
0.00
464.17
464.17
3.04
1574.83
274.91
367.60
642.51
4.08
1574.83
261.62
356.86
618.49
3.93
TOTAL CGS
21525.17
1985.60
5096.64
7082.24
3.29
7462.68
1325.73
1803.30
3129.03
4.19
5469.75
20.28
248.69
268.97
0.49
195.03
2.32
20.00
22.32
1.14
567.27
24.35
62.23
86.58
1.53
2987.82
18.88
245.91
264.79
0.89
1103.85
11.67
137.97
149.64
1.36
447.48
27.51
70.91
98.42
2.20
63.36
1.14
30.59
31.73
5.01
355.41
19.15
49.59
68.74
1.93
330.66
12.00
36.43
48.43
1.46
90.09
1.25
15.25
16.49
1.83
330.66
3.54
30.45
33.99
1.03
103.95
0.43
8.62
9.06
0.87
12045.33
142.53
956.63
1099.16
0.91
ccxxiv
111.61
68.99
0.00
68.99
6.18
32.47
2.64
0.00
2.64
0.81
144.08
71.64
0.00
71.64
4.97
3981.63
0.00
1424.99
1424.99
3.58
12.86
0.00
4.32
4.32
3.36
MINI HYDEL-IPPS
1344.81
0.00
450.68
450.68
3.35
CO-GEN/CAPTIVE
172.09
0.00
64.12
64.12
3.73
BIOMASS
262.15
0.00
135.15
135.15
5.16
SOLAR-IPP
2588.38
0.00
1314.95
1314.95
5.08
32.89
0.00
19.63
19.63
5.97
8394.81
0.00
3413.83
3413.83
4.07
PGCIL CHARGES
958.70
958.70
0.45
KPTCL CHARGES
3171.28
3171.28
0.46
25.80
25.80
0.00
21774.55
27343.96
3.97
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
TOTAL NCE
TRANSMISSION CHARGES
68895.57
5569.41
CAPACI
TY
CHARGE
S (RS Cr)
6696.43
579.68
ENERGY
CHARGES
(RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
2730.99
4.08
1603.00
219.91
490.49
710.40
4.43
3241.00
336.83
1237.34
1574.17
4.86
3294.00
464.75
1138.33
1603.09
4.87
4611.00
464.76
1497.46
1962.23
4.26
1547.46
204.23
413.13
617.36
3.99
20992.89
2270.16
6928.07
9198.23
4.38
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
3246.74
197.69
769.41
967.10
2.98
N.T.P.C-RSTP-III (1X500MW)
819.69
75.28
200.26
275.54
3.36
CGS SOURCES
NTPC-Talcher (4X500MW)
2765.03
213.25
416.53
629.79
2.28
1490.74
226.13
377.82
603.96
4.05
1081.78
176.33
231.16
407.49
3.77
950.35
68.49
238.17
306.66
3.23
ccxxv
1280.64
105.25
320.95
426.20
3.33
731.33
90.16
190.12
280.28
3.83
865.82
111.21
207.21
318.42
3.68
1442.76
185.27
386.07
571.33
3.96
MAPS (2X220MW)
249.31
0.00
51.88
51.88
2.08
922.44
0.00
285.99
285.99
3.10
1001.80
0.00
310.60
310.60
3.10
1527.09
0.00
473.46
473.46
3.10
1574.83
274.91
374.95
649.86
4.13
1574.83
261.62
364.00
625.62
3.97
TOTAL CGS
21525.17
1985.60
5198.58
7184.17
3.34
7462.68
1325.73
1839.36
3165.10
4.24
5469.75
19.16
260.88
280.04
0.51
195.03
2.32
20.83
23.16
1.19
567.27
24.35
64.43
88.78
1.57
2987.82
18.78
258.39
277.17
0.93
1103.85
9.89
144.98
154.87
1.40
447.48
27.36
73.19
100.54
2.25
63.36
1.14
32.33
33.47
5.28
355.41
19.15
51.70
70.85
1.99
330.66
11.69
37.98
49.67
1.50
90.09
0.39
16.02
16.41
1.82
330.66
3.54
31.75
35.29
1.07
103.95
0.43
8.68
9.11
0.88
12045.33
138.20
1001.17
1139.37
0.95
111.61
73.13
0.00
73.13
6.55
32.47
2.64
0.00
2.64
0.81
TOTAL OTHERS
144.08
75.78
0.00
75.78
5.26
4649.94
0.00
1669.14
1669.14
3.59
12.86
0.00
4.32
4.32
3.36
1443.36
0.00
483.69
483.69
3.35
CO-GEN/CAPTIVE
172.09
0.00
64.12
64.12
3.73
BIOMASS
262.15
0.00
135.15
135.15
5.16
SOLAR-IPP
3692.28
0.00
2076.14
2076.14
5.62
ccxxvi
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
32.89
0.00
19.63
19.63
5.97
NTPC- SOLAR
0.00
0.00
0.00
0.00
0.00
10265.57
0.00
4452.20
4452.20
4.34
PGCIL CHARGES
968.29
968.29
0.45
KPTCL CHARGES
3472.60
3472.60
0.48
27.85
27.85
0.00
23888.11
29683.58
4.10
TOTAL NCE
TRANSMISSION CHARGES
72435.72
ccxxvii
5795.47
ANNEXURE-II
APPROVED POWER PURCHASE FOR HESCOM - FY17
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWE
D
ENERGY
ALLOWE
D (MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER
UNIT
RATE
(RS/
Kwh)
15.396
1160.624
95.399
358.386
453.784
3.910
19.458
293.975
41.068
88.420
129.488
4.405
19.458
549.307
57.517
201.570
259.087
4.717
19.458
594.247
86.404
197.384
283.788
4.776
19.458
529.291
0.000
165.217
165.217
3.121
17.722
3127.444
280.387
1010.977
1291.364
4.129
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
19.458
631.737
38.467
143.895
182.362
2.887
N.T.P.C-RSTP-III (1X500MW)
19.458
159.491
14.648
37.453
52.100
3.267
NTPC-Talcher (4X500MW)
19.458
538.009
41.494
77.900
119.394
2.219
19.458
290.062
43.992
70.660
114.652
3.953
19.458
210.489
34.033
43.232
77.265
3.671
19.458
184.914
13.326
44.543
57.869
3.130
19.458
249.181
20.478
60.024
80.503
3.231
19.458
142.299
17.543
35.556
53.099
3.732
19.458
168.468
21.639
38.752
60.391
3.585
19.458
280.727
36.048
72.203
108.251
3.856
CGS SOURCES
19.458
48.509
0.000
9.702
9.702
2.000
19.458
179.485
0.000
53.487
53.487
2.980
19.458
194.925
0.000
58.088
58.088
2.980
19.458
297.134
0.000
88.546
88.546
2.980
19.458
306.424
53.491
70.124
123.615
4.034
19.458
306.424
50.905
68.076
118.981
3.883
TOTAL CGS
19.458
4188.279
386.065
972.239
1358.304
3.243
19.458
1452.058
257.956
343.998
601.954
4.146
26.742
1124.034
5.480
48.699
54.179
0.482
19.458
35.156
0.452
3.462
3.913
1.113
19.458
102.633
4.743
10.882
15.625
1.522
19.458
568.930
3.727
44.580
48.307
0.849
19.458
211.671
2.300
25.178
27.478
1.298
19.458
101.903
5.353
15.659
21.012
2.062
19.458
12.677
0.222
5.791
6.013
4.743
19.458
69.123
3.726
9.256
12.982
1.878
19.458
63.346
2.334
6.698
9.033
1.426
ccxxviii
19.458
17.837
0.382
2.874
3.257
1.826
19.458
60.466
0.690
5.342
6.032
0.998
19.458
21.331
0.084
1.689
1.773
0.831
22.318
2389.108
29.493
180.110
209.603
0.877
OTHERs
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39)
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9)
19.458
21.717
12.665
0.000
12.665
5.832
19.458
6.318
0.514
0.000
0.514
0.813
TOTAL OTHERS
19.458
28.035
13.179
0.000
13.179
4.701
19.458
215.746
0.000
108.737
108.737
5.040
320.075
320.075
3.570
RENEWABLE SOURCES
WIND-IPPS
896.570
0.000
KPCL-WIND (9x0.225+10x0.230)
0.000
0.000
0.000
0.000
#DIV/0!
MINI HYDEL-IPPS
38.640
0.000
12.944
12.944
3.350
CO-GEN/CAPTIVE
95.170
0.000
36.000
36.000
3.783
BIOMASS
0.000
0.000
0.000
0.000
0.00
288.070
0.000
179.260
179.260
6.223
3.080
0.000
1.850
1.850
6.006
1321.530
0.000
550.130
550.130
4.163
PGCIL CHARGES
184.693
184.693
0.44
KPTCL CHARGES
611.370
611.370
0.48
4.130
4.130
0.003
3966.384
4933.463
3.878
TOTAL
COST
(RS Cr)
SOLAR-IPP
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
TOTAL RENEWABLE SOURCES
TRANSMISSION CHARGES
19.458
12722.20
0
967.079
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
19.421
1300.542
108.841
409.622
518.463
3.987
19.421
311.325
42.985
93.392
136.377
4.381
19.421
629.448
64.158
235.598
299.756
4.762
PER UNIT
RATE
(RS/
Kwh)
ccxxix
19.421
639.742
91.698
216.746
308.444
4.821
19.421
871.841
89.275
277.587
366.862
4.208
19.421
3752.898
396.957
1232.944
1629.901
4.343
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
19.421
630.562
38.395
146.500
184.895
2.932
N.T.P.C-RSTP-III (1X500MW)
19.421
159.195
14.620
38.131
52.751
3.314
NTPC-Talcher (4X500MW)
19.421
537.009
41.417
79.311
120.727
2.248
19.421
289.523
43.918
71.939
115.858
4.002
19.421
210.097
34.246
44.014
78.260
3.725
19.421
184.571
13.301
45.350
58.651
3.178
19.421
248.718
20.440
61.111
81.551
3.279
19.421
142.035
17.511
36.199
53.710
3.781
19.421
168.155
21.599
39.454
61.052
3.631
19.421
280.205
35.981
73.510
109.491
3.908
19.421
48.419
0.000
9.878
9.878
2.040
19.421
179.151
0.000
54.455
54.455
3.040
19.421
194.563
0.000
59.139
59.139
3.040
19.421
296.582
0.000
90.149
90.149
3.040
19.421
305.854
53.392
71.393
124.785
4.080
19.421
305.854
50.811
69.308
120.119
3.927
TOTAL CGS
19.421
4180.493
385.631
989.840
1375.472
3.290
19.421
1449.358
257.476
350.226
607.702
4.193
19.421
1062.303
3.940
48.299
52.239
0.492
19.421
37.878
0.451
3.884
4.335
1.144
19.421
110.172
4.730
12.086
16.815
1.526
19.421
580.277
3.667
47.759
51.426
0.886
19.421
214.383
2.267
26.795
29.062
1.356
19.421
86.907
5.343
13.772
19.115
2.199
19.421
12.305
0.221
5.941
6.162
5.008
19.421
69.026
3.719
9.631
13.350
1.934
19.421
64.219
2.330
7.076
9.406
1.465
19.421
17.497
0.242
2.961
3.203
1.831
19.421
64.219
0.688
5.913
6.602
1.028
19.421
20.189
0.084
1.675
1.759
0.871
19.421
2339.374
27.682
185.790
213.472
0.913
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39)
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9)
19.421
21.677
13.400
0.000
13.400
6.182
19.421
6.306
0.513
0.000
0.513
0.813
TOTAL OTHERs
19.421
27.983
13.913
0.000
13.913
4.972
RENEWABLE SOURCES
ccxxx
WIND-IPPS
958.560
0.000
343.164
343.164
3.580
KPCL-WIND (9x0.225+10x0.230)
0.000
0.000
0.000
0.000
#DIV/0!
MINI HYDEL-IPPS
38.640
0.000
12.944
12.944
3.350
CO-GEN/CAPTIVE
95.170
0.000
36.000
36.000
3.783
BIOMASS
0.000
0.000
0.000
0.000
#DIV/0!
574.550
0.000
291.920
291.920
5.081
3.080
0.000
1.850
1.850
6.006
1670.000
0.000
685.879
685.879
4.107
PGCIL CHARGES
186.193
186.193
0.45
KPTCL CHARGES
589.720
589.720
0.44
4.800
4.800
0.004
4225.392
5307.052
3.955
SOLAR-IPP
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
TOTAL RENEWABLE SOURCES
TRANSMISSION CHARGES
19.421
13420.106
1081.659
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
19.001
1272.381
110.144
408.768
518.912
4.078
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
19.001
304.584
41.785
93.197
134.982
4.432
19.001
615.819
64.001
235.106
299.107
4.857
19.001
625.889
88.307
216.293
304.601
4.867
19.001
876.131
88.309
284.532
372.841
4.256
19.001
294.032
38.805
78.499
117.303
3.989
19.001
3988.836
431.352
1316.395
1747.746
4.382
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW)
19.001
616.909
37.564
146.195
183.758
2.979
N.T.P.C-RSTP-III (1X500MW)
19.001
155.748
14.304
38.051
52.355
3.362
NTPC-Talcher (4X500MW)
19.001
525.381
40.520
79.145
119.665
2.278
19.001
283.254
42.968
71.789
114.757
4.051
19.001
205.548
33.504
43.922
77.427
3.767
19.001
180.574
13.013
45.255
58.268
3.227
19.001
243.333
19.998
60.984
80.981
3.328
19.001
138.959
17.132
36.124
53.255
3.832
ccxxxi
19.001
164.514
21.131
39.371
60.502
3.678
19.001
274.138
35.202
73.356
108.559
3.960
19.001
47.371
0.000
9.857
9.857
2.081
19.001
175.272
0.000
54.341
54.341
3.100
19.001
190.350
0.000
59.016
59.016
3.100
19.001
290.160
0.000
89.961
89.961
3.100
19.001
299.232
52.236
71.244
123.480
4.127
19.001
299.232
49.711
69.164
118.874
3.973
TOTAL CGS
19.001
4089.973
377.281
987.776
1365.057
3.338
19.001
1417.975
251.901
349.495
601.396
4.241
19.001
1039.301
3.640
49.570
53.211
0.512
19.001
37.057
0.441
3.959
4.400
1.187
19.001
107.786
4.627
12.242
16.870
1.565
19.001
567.712
3.568
49.096
52.664
0.928
19.001
209.741
1.879
27.547
29.426
1.403
19.001
85.025
5.198
13.906
19.104
2.247
19.001
12.039
0.217
6.144
6.360
5.283
19.001
67.531
3.638
9.824
13.462
1.993
19.001
62.828
2.222
7.217
9.438
1.502
19.001
17.118
0.074
3.043
3.117
1.821
19.001
62.828
0.673
6.033
6.706
1.067
19.001
19.751
0.082
1.649
1.731
0.877
19.001
2288.720
26.260
190.230
216.490
0.946
19.001
21.208
13.896
0.000
13.896
6.552
19.001
6.169
0.502
0.000
0.502
0.813
19.001
27.377
14.398
0.000
14.398
5.259
516.809
516.809
3.590
OTHERs
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39)
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9)
TOTAL OTHERs
RENEWABLE SOURCES
WIND-IPPS
1439.580
0.000
KPCL-WIND (9x0.225+10x0.230)
0.000
0.000
0.000
0.000
#DIV/0!
MINI HYDEL-IPPS
38.640
0.000
12.944
12.944
3.350
CO-GEN/CAPTIVE
95.170
0.000
36.000
36.000
3.783
BIOMASS
0.000
0.000
0.000
0.000
#DIV/0!
625.560
0.000
518.250
518.250
8.285
3.080
0.000
1.850
1.850
6.006
2202.030
0.000
1085.854
1085.854
4.931
PGCIL CHARGES
183.983
183.983
#DIV/0!
KPTCL CHARGES
650.080
650.080
#DIV/0!
5.210
5.210
#DIV/0!
SOLAR-IPP
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
TOTAL RENEWABLE SOURCES
TRANSMISSION CHARGES
ccxxxii
ccxxxiii
19.001
14014.912
1101.192
4769.022
5870.214
4.189
Annexure - III
PROPOSED AND APPROVED REVENUE AND REALISATION AND LEVEL OF CROSS SUBSIDY FOR FY-17 OF HESCOM
With ref. to
ACS
Proposed by HESCOM Approved as per RST
Sales-M U Revenue
Sales-M U Revenue
Sl No
Category
Description
Rs. crores
Average
Le v e l o f
C ro s s
Realisation in
S
ubs
idy in %
Rs. Per Kw h
Level of
Cross
Subsidy in
% (EHT)
Rs. crores
4 LT-2(a)(ii)
5 LT-2(b)(i)
93.41
61.09
90.84
54.32
5.98
0.00
-1.97
940.95
523.60
942.22
478.64
5.08
-15.05
-16.72
546.83
251.00
531.72
226.06
4.25
-28.90
-30.30
10.73
8.94
11.41
8.94
7.84
31.05
28.47
3.70
2.83
3.94
2.72
6.90
15.71
13.43
305.70
286.51
308.35
268.92
8.72
45.84
42.97
29.50
6 LT-2(b)(ii)
7 LT-3(i)
8 LT-3(ii)
9 LT-4(a)*
10 LT-4(b)
IP>10HP
134.80
114.50
132.15
104.39
7.90
32.10
6317.43
3853.63
5619.82
3124.62
5.56
-7.02
-8.85
17.47
6.43
17.47
6.10
3.49
-41.62
-42.77
1.30
0.47
1.30
0.41
3.15
-47.87
-48.90
above 10 HP
LT Industrial
LT-5(b)
0.18
0.08
0.18
0.09
5.00
-19.14
-20.73
92.05
69.55
93.12
64.72
6.95
16.23
13.95
220.93
162.85
223.60
154.36
6.90
15.44
13.17
-24.22
-25.71
14 LT-6
Water supply
231.47
110.07
231.47
104.89
4.53
15 LT-6
Public lighting
134.86
84.89
137.51
80.06
5.82
-2.64
-4.56
16 LT-7(a)
Temporary supply
14.61
14.64
14.61
13.88
9.50
58.87
55.74
9066.42
5551.08
8359.71
4693.12
5.61
-6.12
-7.97
239.32
132.88
229.75
113.94
4.96
-17.07
-9.17
-2.95
1013.41
789.06
1013.41
729.69
7.20
25.41
31.88
40.91
135.84
119.82
132.59
116.73
8.80
47.22
61.24
72.28
40.22
29.37
40.24
27.04
6.72
12.36
23.06
31.49
42.92
33.76
42.90
32.25
7.52
25.73
37.70
47.13
164.90
44.85
152.02
30.40
2.00
-66.56
-63.37
-60.86
61.10
16.74
56.28
11.79
2.09
-64.95
-61.62
-58.99
4.67
1.35
4.47
1.05
2.35
60.59
-56.83
-53.88
-29.31
LT - TOTAL
1 HT-1
2 HT-2(a)
3 HT-2(b)
Commercial
4 HT-2( c) (i)
5 HT-2( c) (ii)
6 HT-3(a)(i)
7 HT-3(a)(ii)
Industrial
urban/express feeders
LI schemes other than those
0.15
0.07
0.16
0.06
0.00
-37.29
-31.32
10 HT-4
14.01
9.56
14.01
9.13
6.52
8.94
19.32
27.49
11 HT-5
Temporary supply
17.83
22.02
17.83
22.33
12.52
109.44
129.39
145.10
HT - TOTAL
1734.37
1199.49
1703.65
1094.42
6.42
7.42
17.66
25.71
Total
10800.79
6750.57
10063.35
5787.53
5.75
-3.84
5.98
0.00
9 HT - 3b
Misc. Revenue
234.76
230.44
0.00
10800.79
6985.33
10063.35
6017.97
* These categories are subsidised by GoK. In case subsidy is not released by the Gok in advance, HESCOM
ccxxxiv
shall raise demand & collect CDT of Rs.5.98/unit by BJ/KJ & Rs.5.56/unit from IP set Consumers.
* Voltage w ise cost of supply per unit to: LT Rs: 6.10, HT Rs.5.46 & EHT- Rs.5.11
Page - 218
ANNEX - IV
Hubli
Electricity Supply Company Ltd.,
ccxxxv
ELECTRICITY TARIFF-2017
GENERAL TERMS AND CONDITIONS OF TARIFF:
(APPLICABLE TO BOTH HT AND LT)
1.
2.
3.
4.
5.
6.
For the purpose of these tariffs, the following conversion table would
be used:
1 HP=0.746 KW. 1HP=0.878 KVA.
ccxxxvi
7.
The bill amount will be rounded off to the nearest Rupee, i.e., the bill
amount of 50 paise and above will be rounded off to the next higher
Rupee and the amount less than 50 paise will be ignored.
8.
9.
The Consumer shall not resell electricity purchased from the Licensee
to a third party except
Non-receipt of the bill by the Consumer is not a valid reason for nonpayment. The Consumer shall notify the office of issue of the bill if the
same is not received within 7 days from the meter reading date.
Otherwise, it will be deemed that the bills have reached the Consumer
in due time.
12.
The Licensee will levy the following charges for non-realization of each
Cheque
ccxxxvii
2
3
13.
14.
15.
16.
17.
18.
ccxxxviii
19.
For individual installations, more than one meter shall not be provided
under the same tariff. Wherever two or more meters are existing for
individual installation, the sum of the consumption recorded by the
meters shall be taken for billing, till they are merged.
20.
21.
22.
Rs.20/-per Installation.
Rs.50/-per Installation.
Rs.100/-per
Installation.
Rs.500/-per
Installation.
D.D
up
to
and
inclusive of
For the types of installations not covered under any Tariff schedules,
the
Licensee
is
permitted
to
classify
such
installations
under
Seasonal Industries
Applicable to all Seasonal Industries
i) The industries that intend to avail this benefit shall have Electronic TriVector Meter fitted to their installations.
ii) Working season months and off-season months shall be
determined by an order issued by the Executive Engineer of the
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25
iii)
iv)
v)
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26
SICK INDUSTRIES:
The Government of Karnataka has extended certain reliefs for
revival/rehabilitation of sick industries under the New Industrial Policy
2001-06 vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the
Government of Karnataka has issued G.O No.CI2 BIF 2010, dated
21.10.2010.
29.
and Regulations issued under Electricity Act 2003 will prevail over the
extract given in this tariff book in the event of any discrepancy.
30.
Self-Reading of Meters:
The Commission has approved Self-Reading of Meters by Consumers
and issue of bills by the Licensee based on such readings and the
Licensee shall take the reading at least once in six months and
reconcile the difference, if any and raise the bills accordingly. This
procedure may be implemented by the Licensee as stipulated under
Section 26.01 of Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
---0---
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ELECTRICITY TARIFF2017
PART-1
HIGH TENSION SUPPLY
Applicable to Bulk Power Supply of Voltages
at 11KV (including 2.3/4.6 KV) and above at
Standard High Voltage or Extra High Voltages
when the Contract Demand is 50 KW / 67 HP
and above.
ccxliii
When the Licensee has imposed demand cut of 25% or less, the
conditions stipulated in (A) shall apply.
C)
E)
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F) During the period of energy cut, the Consumer may get his demand
entitlement lowered, but not below the percentage of energy
entitlement, (For example, In case the energy entitlement is 40% and
the demand entitlement is 80%, the re-fixation of demand entitlement
cannot be lower than 40% of the CD). The benefit of lower demand
entitlement will be given effect to from the meter reading date of the
same month, if the option is exercised on or before 15th of the month. If
the option is exercised on or after 16th of the month, the benefit will be
given effect to from the next meter reading date. The Consumer shall
register such option by paying processing fee of Rs.100/- at the
Jurisdictional sub-division office.
(i) The billing demand in such cases, shall be the Revised (Opted)
Demand Entitlement or, the recorded demand, whichever is
higher. Such option for reduction of demand entitlement, is allowed
only once during the entire span of that particular Energy Cut
Period. The Consumer, can however opt for a higher demand
entitlement up to the level permissible under the demand cut
notification, and the benefit will be given effect to from the next
meter reading date. Once the Consumer opts for enhancement of
demand, which has been reduced under Clause (F), no further
revision is permitted during that particular energy cut period.
(ii) The opted reduced demand entitlement will automatically cease
to be effective, when the energy cut is revised. The facility for
reduction and enhancement can however be exercised afresh by
the Consumer as indicated in the previous paras.
G) For the purpose of billing, the billing demand of 0.5 KVA and above will
be rounded off to the next higher KVA, and billing demand of less than
0.5 KVA shall be ignored.
2. Power factor (PF)
It shall be the responsibility of the HT Consumer to determine the
capacity of PF correction apparatus and maintain an average PF of
not less than 0.90.
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(i) The specified P.F. is 0.90. If the power factor goes below 0.90
Lag, a surcharge of 3 Paise per unit consumed will be levied for
every reduction of P.F. by 0.01 below 0.90 Lag.
(ii) The power factor when computed as the ratio of KWh / KVAh
will be determined up to 3 decimals (ignoring figures in the other
decimal places), and then rounded off to the nearest second
decimal as illustrated below:
(a) 0.8949 to be rounded off to 0.89
(b) 0.8951 to be rounded off to 0.90
In respect of Electronic Tri-Vector meters, the recorded average PF
over the billing period shall be considered for billing purposes. If the
same is not available, the ratio of KWh to KVAh consumed in the billing
month shall be considered.
3. Rebate for supply at high voltage:
If the Consumer is availing power at voltage higher than 13.2 KV, he will
be entitled to a rebate as indicated below:
Supply Voltage: Rebate
A) 33/66 KV
2 Paise/unit of energy consumed
B) 110 KV
3 Paise/unit of energy consumed
C) 220 KV
5 Paise/unit of energy consumed
The above rebate will be allowed in respect of all the installations of
the
I
n respect of Residential Quarters/ Colonies availing Bulk power supply
by tapping the main HT supply, the energy consumed by such Colony
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loads, metered at single point, shall be billed under HT-4 tariff schedule.
No reduction in demand recorded in the main HT meter will be
allowed.
5. Energy supplied may be utilized for all purposes associated with the
working of the installations, such as, Office, Stores, Canteens, Yard
Lighting, Water Supply and Advertisements within the premises.
6. Energy can also be used for construction, modification and expansion
purposes within the premises.
7. Power supply under HT-4 tariff schedule may be used for Commercial
and other purposes inside the colony, for installations such as Canteen,
Club, Shop, Auditorium etc., provided, this load is less than 10% of the
CD.
8. In respect of Residential Apartments availing HT Power supply under HT4 tariff schedule, the supply availed for Commercial and other
purposes like Shops, Hotels, etc., will be billed under appropriate tariff
schedule, (Only Energy charges) duly deducting such consumption in
the main HT supply bill. No reduction in the recorded demand of the
main HT meter is allowed. Common areas shall be billed at Tariff
applicable to that of the predominant Consumer category.
[
9. Seasonal Industries
a. The industries, which intend to utilize seasonal industry benefit, shall
conform to the conditionalities under Para no. 25 of the General
terms and conditions of tariff (applicable to both HT & LT).
b. The industries that intend to avail this benefit, shall have Electronic
Tri-Vector Meter fitted to the installation.
c. Monthly charges during the working season shall be the demand
charges on 75% of the contract demand or the recorded maximum
demand during the month, whichever is higher, plus the energy
charges
d. Monthly charges during the off season, shall be demand charges
on the maximum demand recorded during the month, or 50% of the
CD whichever is higher plus the energy charges.
TARIFF SCHEDULE HT 1
[Applicable to Water Supply, Drainage / Sewerage water treatment
plant and Sewerage Pumping installations, belonging to Karnataka
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Urban Water Supply and Sewerage Board, other local bodies, State
and Central Government.
RATE SCHEDULE
Demand charges
Rs.190/kVA of billing demand/month
Energy charges
450 paise/unit
to
Industries,
Factories,
Workshops,
Research
&
Roller
Flour
Mills,
News
Papers,
Printing
Press,
Railway
Culture,
Information
Technology
Industries
engaged
in
Tyre
retreading
units,
Nuclear
Power
Projects,
Stadiums
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RATE SCHEDULE
HT-2 (c) (ii) - Applicable to Hospitals and Educational Institutions other than
those covered under HT-2 (c)(i).
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Demand charges
Energy charges
For the first one lakh units
700 paise per unit
For the balance units
750 paise per unit
Note: Applicable to HT-2 (a) , HT-2 (b) & HT-2(c) Tariff Schedule.
RATE SCHEDULE
Energy charges / Minimum Charges
400 paise per unit subject to an
annual minimum of Rs.1120/- per HP
of sanctioned load.
Note: These installations are to be billed on quarter yearly basis.
TARIFF SCHEDULE HT-4
Applicable to Residential apartments and colonies (whether situated
outside or inside the premises of the main HT Installation) availing
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Demand charges
Energy charges
NOTE:
RATE SCHEDULE
Applicable to all areas
Rs.110/- per kVA of billing demand/
month
585 paise/unit
Note:
1. Temporary power supply with or without extension of distribution
main shall be arranged through a prepaid energy meter duly
observing the provisions of Clause 12 of the Conditions of Supply of
Electricity of the Distribution Licensees in the State of Karnataka.
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cclii
ELECTRICITY TARIFF-2017
PART-II
LOW TENSION SUPPLY
(400 Volts Three Phase and
230Volts Single Phase Supply)
HESCOM
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(ii)
The specified P.F. is 0.85. If the PF is found to be less than 0.85 Lag, a
surcharge of 2 Paise per unit consumed will be levied for every
reduction of P.F. by 0.01 below 0.85 Lag. In respect of LT installations,
however, this is subject to a maximum surcharge of 30 Paise per unit.
The power factor when computed as the ratio of KWh/KVAh will be
determined up to 3 decimals (ignoring figures in the other decimal
places) and then rounded off to the nearest second decimal as
illustrated below:
(a)
(b)
(iii)
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13. All the existing IP set Consumers shall also fix capacitors of adequate
capacity in accordance with Clause 23 of Conditions of Supply of
Electricity of the Distribution Licensees in the State of Karnataka, failing
which, PF surcharge at the rate of Rs.60/-per HP/ year shall be levied. If the
capacitors are found to be removed / not installed, a penalty at the same
rate as above (Rs. 60/-per HP / Year) shall be levied.
14.The Semi-permanent cinemas having Semi-permanent structure, with
permanent wiring and licence of not less than one year, will be billed
under commercial tariff schedule i.e., LT 3.
15.Touring cinemas having an outfit comprising cinema apparatus and
accessories, taken from place to place for exhibition of cinematography
films, and also outdoor shooting units, will be billed under Temporary Tariff
schedule i.e., LT 7.
16. The Consumers under IP set tariff schedule, shall use the energy only for
pumping water to irrigate their own land as stated in the IP set application / water
right certificate and for bonafide agriculture use. Otherwise, such installations
shall be billed under appropriate Industrial / Commercial tariff, based on the
recorded consumption if available, or on the consumption computed as per the
Table given under Clause 42.06 of the Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka.
17. The water pumped for agricultural purposes may also be used by the
Consumer for his bonafide drinking purposes and for supplying water to
animals, birds, Poultry farms, Dairy farms and fish farms maintained by the
Consumer in addition to agriculture.
18. The motor of IP set installations can be used with an alternative drive for
other agricultural operations like sugar cane crusher, coffee pulping, etc.,
with the approval of the Licensee. The energy used for such operation,
shall be metered separately by providing alternate switch and charged at
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Yard-Lighting,
water
supply
in
the
premises
of
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26.
Seasonal Industries:
a) The industries who intend to utilize seasonal industry benefit, shall
comply with the conditionalities under Para no. 25 of the General
terms and conditions of tariff (applicable to both HT & LT).
b) The industries that intend to avail this benefit, shall have Electronic
Tri-Vector Meter fitted to their installation.
c) Monthly charges during the seasonal months shall be fixed charges
and energy charges. The monthly charges during the off seasonal
months, shall be the energy charges plus 50% of the fixed charges.
(i) Engineering
(c)
Astrology (v) Legal matters (vi) Income tax (vii) Chartered Accountants
(d) Job typing
(e) Tailoring
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(ii) Houses,
institutions
run by State/Central
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RATE SCHEDULE
LT 2 (a) (i): Applicable to areas coming under City Municipal Corporations
and all other Urban Local Bodies
Fixed charges per month
For the first KW
Rs.30/- per KW
For every additional KW Rs.40/- per KW
Energy charges
For 0 - 30 units (Lifeline 300 Ps/unit
consumption)
31 to 100 units 440 paise /unit
101 to 200 units 590 paise /unit
Above 200 units 690 paise /unit
LT-2(a)(ii): Applicable to Areas under Village Panchayats
Fixed charges per month
For the first KW
Rs.20/- per KW
For every additional KW Rs.30/- per KW
Energy charges
For 0 - 30 units (Lifeline 290 paise /unit
consumption)
31 to 100 units 410 paise /unit
101 to 200 units 560 paise /unit
Above 200 units 640 paise /unit
TARIFF SCHEDULE LT-2(b)
Educational
Institutions
including
aided,
unaided
RATE SCHEDULE
LT 2 (b) (i): Applicable to City Municipal Corporations and all other Urban
Local Bodies
Fixed charges
Energy charges
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4.
5.
(a) Use of power within the consumers premises for temporary purposes
for bonafide use is permitted subject to the condition that, the total
load of the installation on the system does not exceed the
sanctioned load.
(b) Where it is intended to use floor polishing and such other portable
equipment temporarily, in the premises having permanent supply,
such equipment shall be provided with an earth leakage circuit
breaker of adequate capacity.
The laboratory installations in educational institutions are allowed to
install connected machinery up to 4 times the sanctioned load. The fixed
charges shall however be on the basis of sanctioned load.
Besides lighting and heating, electricity supply under this schedule can be
used for fans, Televisions, Radios, Refrigerators and other house-hold
appliances including domestic water pump and air conditioners,
provided, they are under single meter connection. If a separate meter is
provided for Air conditioner Load, the consumption shall be under
commercial tariff till it is merged with the main meter.
SOLAR REBATE: A rebate of 50 Paise per unit of electricity consumed to a
maximum of Rs.50/- per installation per month will be allowed to Tariff
schedule LT 2(a), if solar water heaters are installed and used. Where Bulk
Solar Water Heater System is installed, Solar Water Heater rebate shall be
allowed to each of the individual installations, provided that, the
capacity of Solar Water Heater in such apartment / group housing shall
be a minimum capacity of 100 Ltr, per household.
TARIFF SCHEDULE LT-3
Applicable to Commercial Lighting, Heating and Motive Power
installations of Clinics, Diagnostic Centers, X Ray units, Shops, Stores,
Hotels / Restaurants / Boarding and Lodging Homes, Bars, Private guest
Houses, Mess, Clubs, Kalyan Mantaps / Choultry, permanent Cinemas/
Semi Permanent Cinemas, Theatres, Petrol Bunks, Petrol, Diesel and oil
Storage
Plants,
Service
Stations/
Garages,
Banks,
Telephone
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Above 50 units
RATE SCHEDULE
LT-3 (ii): Applicable in Areas under Village Panchayats
Fixed charges
Rs.40 per KW per month
Energy charges
For 0 - 50 units
665 paise /unit
Above 50 units
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RATE SCHEDULE
Free
Commission Determined Tariff (CDT) for LT4 (a) category is 556 Paise per unit. In
case the GOK does not release the subsidy in advance in the manner specified
by the Commission in K.E.R.C. (Manner of Payment of subsidy) Regulations,
2008, CDT of 556 Paise per unit shall be demanded and collected from these
Consumers.
Note: This Tariff is applicable for Coconut and Areca nut plantations also.
TARIFF SCHEDULE LT-4 (b):
Applicable to IP sets above 10 HP
RATE SCHEDULE
Fixed charges
Rs.40 per HP per month.
Energy charges
280 paise per unit
TARIFF SCHEDULE LT-4 (c) (i):
Applicable to Private Horticultural Nurseries, Coffee, Tea and Rubber
plantations of sanctioned load up to and inclusive of 10 HP.
RATE SCHEDULE
Fixed charges
Rs.30 per HP per month.
Energy charges
280 paise per unit
TARIFF SCHEDULE LT-4 (c)(ii):
Applicable to Private Horticultural Nurseries, Coffee , Tea and Rubber
plantations of sanctioned load above 10 HP.
RATE SCHEDULE
Fixed charges
Rs.40 per HP per month.
Energy charges
280 paise per unit
Note:
1) The energy supplied under this tariff shall be used by the consumers only for
pumping water to irrigate their own land as stated in the I.P. Set application /
water right certificate and for bonafide agriculture use. Otherwise, such
installations shall be billed under the appropriate Tariff (LT-3/ LT-5) based on the
recorded consumption if available, or on the consumption computed as per the
Table given under Clause 42.06 of the Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka.
2) The motor of IP set installations can be used with an alternative drive for other
agricultural operations like sugar cane crusher, coffee pulping, etc., with the
approval of the Licensee. The energy used for such operation shall be metered
separately by providing alternate switch and charged at LT Industrial Tariff (Only
Energy charges) during the period of alternative use. If the energy used both for
IP Set and alternate operation, is however measured together by one energy
meter, the energy used for alternate drive shall be estimated by deducting the
average IP Set consumption for that month as per the IP sample meter readings
for the sub division as certified by the sub divisional Officer.
cclxv
3) The Consumer is permitted to use the energy for lighting the pump house and
well limited to 2 lighting points of 40 W each.
4) The water pumped for agricultural purposes may also be used by the Consumer
for his bonafide drinking purposes and for supplying water to animals, birds,
Poultry farms, Dairy farms and fish farms maintained by the Consumer in addition
to agriculture.
5) Billing shall be made at least once in a quarter year for all IP sets.
6) A rebate of 2 paise per unit will be allowed if capacitors are installed as per Clause
23 of Conditions of Supply of Electricity of the Distribution Licensees in the State
of Karnataka in respect of all metered IP Set Installations.
7) Only fixed charges as in Tariff Schedule for Metered IP Set Installations shall be
collected during the disconnection period of IP Sets under LT 4(a), LT 4(b) and
LT 4(c) categories irrespective of whether the IP Sets are provided with Meters or
not.
TARIFF SCHEDULE LT-5
Applicable to Heating & Motive power (including lighting) installations
of industrial Units, Workshops, Poultry Farms, Sugarcane Crushers,
Coffee Pulping, Cardamom drying, Mushroom raising installations,
Flour, Huller & Rice Mills, Wet Grinders, Milk dairies, Ironing, Dry Cleaners
and Laundries having washing, Drying, Ironing etc., exclusive Tailoring
Shops, Bulk Ice Cream and Ice manufacturing Units, Coffee Roasting
and Grinding Works, Cold Storage Plants, Bakery Product Mfg. Units,
KSRTC workshops/Depots, Railway workshops, Drug manufacturing units
and Testing laboratories, Printing Presses, Garment manufacturing units,
Bulk Milk vending Booths, Swimming Pools of local Bodies, Tyre
retreading units, Stone crushers, Stone cutting, Chilly Grinders, Phova
Mills, pulverizing Mills, Decorticators, Iron & Red-Oxide crushing units,
crematoriums, hatcheries, Tissue culture, Saw Mills, Toy/wood industries,
Viswa Sheds with mixed load sanctioned under Viswa Scheme,
Cinematic
activities
such
as
Processing,
Printing,
Developing,
Fixed
i) Rs.30 per HP for 5 HP & below
Charges per ii) Rs.35 per HP for above 5 HP & below 40 HP
Month
iii) Rs.40 per HP for 40 HP & above but below 67 HP
iv) Rs.100 per HP for 67 HP & above
cclxvii
495 paise/unit
585 paise/ unit
615 paise/unit
cclxviii
during the month which ever is higher. If the Maximum Demand recorded is
more than the sanctioned load, penal charges at two times the normal rate
shall apply.
2. Seasonal Industries: The industries which intend to utilize seasonal industry
benefit shall comply with the conditionalities under para no. 26 of general
terms and conditions applicable to LT.
3. Electricity can also be used for lighting, heating, and air-conditioning in the
premises.
4. In the case of welding transformers, the connected load shall be taken as
(a) Half the maximum capacity in KVA as per the name plate specified
under-IS1851 or (b) Half the maximum capacity in KVA as recorded during
rating by the Licensee, whichever is higher.
TARIFF SCHEDULE LT-6
Applicable to water supply and sewerage pumping installations and
also applicable to applicable to water purifying plants maintained by
Government and Urban Local Bodies/ Grama Panchayats for supplying
pure drinking water to residential areas, Public Street lights/Park lights
of village Panchayat, Town Panchayat, Town Municipalities, City
Municipalities / Corporations / State and Central Govt. / APMC, Traffic
signals, Surveillance Cameras at traffic locations belonging to
Government Department, subways, water fountains of local bodies.
Also applicable to Streetlights of residential Campus of universities,
other educational institutions, housing colonies approved by local
bodies/development authority, religious institutions, organizations run
on charitable basis, industrial area / estate and notified areas, also
Applicable to water supply installations in residential Layouts, Street
lights along with signal lights and associated load of the gateman hut
provided at the Railway level crossing.
RATE SCHEDULE
Water Supply- LT-6 (a)
Fixed charges
Rs.45 HP/month
Energy charges
390 paise /unit
Public lighting- LT-6 (b)
Fixed charges
Rs.60/KW/month
Energy charges
550 paise /unit
Energy Charges for LED/ Induction 450 paise/unit
Lighting
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Details
Approved Tariff
Energy charges at 950 paise / unit
subject to a weekly minimum of Rs.170
per KW of the sanctioned load.
Details
Approved Tariff
Fixed Charges at Rs.50 per KW / month
& Energy charges at 950 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main shall
be arranged through a prepaid energy meter duly observing the
provisions of Clause 12 of the Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka.
2. This Tariff is also applicable to touring cinemas having licence for duration
less than one year.
3. All the conditions regarding temporary power supply as stipulated in Clause
12 of the Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka shall be complied with before service.
-O-
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