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KARNATAKA ELECTRICITY REGULATORY COMMISSION
TARIFF ORDER 2016
OF
MESCOM
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: [email protected]
ii
C O N T E N T S
CHAPTER
Page No.
1.0 Mangalore Electricity Supply Company Ltd., -
MESCOM
3
1.1 MESCOM at a Glance 5
1.2 Number of Consumers, Sales in MU to various
categories of consumers and details of Revenue
for FY15
5
2 Summary of Filing and Tariff Determination
Process
7
2.0 Background for Current Filing 7
2.1 Preliminary Observations of the Commission 7
2.2 Public Hearing Process 8
2.3 Consultation with the Advisory Committee of the
Commission
9
3.0 Public Consultation – Suggestions / Objections
and Replies
10
3.1 List of persons who filed written objections 10
4 Annual Performance Review for FY15 13
4.0 MESCOM’s Application for APR for FY15 13
4.1 MESCOM’s Submission 13
4.2 MESCOM’s Financial Performance as per
Audited Accounts for FY15
15
4.2.1 Sales for FY15 16
4.2.2 Distribution Losses for FY15 20
4.2.3 Power Purchase for FY15 21
4.2.4 RPO Compliance by MESCOM for FY15 24
4.2.5 Operation and Maintenance Expenses 25
4.2.6 Depreciation 28
4.2.7 Capital Expenditure for FY15 29
4.2.8 Prudence check of capital expenditure for FY15 31
4.2.9 Prudence Check of Capital Expenditure for FY13
& FY14
34
4.2.10 Interest and Finance Charges 35
4.2.11 Interest on Working Capital 36
4.2.12 Interest on Consumer Deposits 37
4.2.13 Other Interest and Finance Charges 38
4.2.14 Capitalisation of Interest and other Expenses 38
4.2.15 Other Debits 38
4.2.16 Net Prior Period Charges 39
4.2.17 Return on Equity 40
4.2.18 Income Tax 40
4.2.19 Other Income 41
4.2.20 Fund towards Consumer Relations / Consumer
Education
41
4.3 Abstract of Approved ARR for FY15 41
iii
4.3.1 Gap in Revenue for FY15 43
5.0 Annual Revenue Requirement for FY7-19 -
MESCOM’s Filing
44
5.1 Annual Performance Review for FY15 & FY16 45
5.2 Annual Revenue Requirement for FY17-19 45
5.2.1 Capital Investments for FY17-19 45
5.2.2 Sales Forecast for FY17-19 51
5.2.3 Distribution Losses for FY17-19 62
5.2.4 Power Purchase for FY17-19 63
5.2.5 Sources of Power 65
5.2.6 MESCOM’s Power Purchase Cost and
Transmission Charges
67
5.2.7 RPO Target for FY17 71
5.2.8 O & M Expenses for FY17-19 72
5.2.9 Depreciation 76
5.2.10 Interest on Capital Loans 78
5.2.11 Interest on Working Capital 80
5.2.12 Interest on Consumer Security Deposit 82
5.2.13 Other Interest and Finance Charges 83
5.2.14 Interest and other expenses capitalised 83
5.2.15 Interest on belated payment of power purchase
cost
83
5.2.16 Other Debits 84
5.2.17 Net Prior Period Credit / Charges 84
5.2.18 Return on Equity 85
5.2.19 Other Income 87
5.2.20 Fund Towards Consumer Relations / Consumer
Education
88
5.3 Treatment of Regulatory Asset 88
5.4 Abstract of ARR for FY17-19 89
5.5 Segregation of ARR into ARR for Distribution
Business and ARR for Retail Supply Business
90
5.6 Gap in Revenue for FY17 92
5.7 Application for Additional Revenue Requirement
for FY17
93
6 Determination of Tariff for FY17 95
6.0 MESCOM’s Proposal and Commission’s Analysis
for FY17
95
6.1 Tariff Application 95
6.2 Statutory Provisions Guiding Determination of
Tariff
95
6.3 Consideration for Tariff filing 96
6.4 New Tariff Proposals by MESCOM 97
6.5 Revenue at Existing tariff and deficit for FY17 99
6.6 Other issues 131
6.6.1 Tariff for Green Power 131
6.6.2 Determination of Wheeling Charges 132
6.6.3 Wheeling within MESCOM area 132
6.6.4 Wheeling of Energy using Transmission Network
or network of more than one licensee
134
iv
6.6.5 Charges for Wheeling of energy by RE sources
(Non REC route) to consumer in the State
135
6.6.6 Charges for Wheeling Energy by RE sources
wheeling energy from the State to a
consumer/other outside the State and for those
opting for Renewable Energy Certificate
135
6.7 Other Tariff related issues 135
6.8 Cross Subsidy Levels for FY17 140
6.9 Effect of Revised Tariff 140
6.10 Summary of the Tariff Order 141
6.11 Commission’s Order 143
Appendix 144
Appendix - I 178
v
LIST OF TABLES
Table
No.
Content Page
No.
4.1 ARR for FY15 – MESCOM’s Submission 14
4.2 Financial Performance of MESCOM for FY15 15
4.3 MESCOM’s Accumulated Profit / Losses 16
4.4 Approved & Actual Sales for FY15 19
4.5 MESCOM’s Power Purchase for FY15 21
4.6 RPO Compliance as submitted by MESCOM for FY15 24
4.7 Normative O & M Expenses – MESCOM’s Submission 25
4.8 Approved O & M Expenses as per Tariff Order dated
12.05.2014
26
4.9 Allowable O & M Expenses for FY15 27
4.10 Capital Expenditure of MESCOM for FY15 29
4.11 Approved Vs Actual Capital Investment 31
4.12 Gist of Prudence Check Findings for FY15 32
4.13 Summary of Works having cost overrun 32
4.14 Summary of Woks having time overrun 32
4.15 Allowable Interest on Loans – FY15 35
4.16 Allowable Interest on Working Capital for FY15 37
4.17 Allowable Interest and Finance Charges 38
4.18 Allowable Other Debits 39
4.19 Allowable Return on Equity 40
4.20 Approved revised ARR for FY15 as per APR 42
5.1 Proposed ARR for FY17-19 44
5.2 Proposed capital investment program by MESCOM
for FY17 to FY19
46
5.3 Physical Progress of E&I Works for FY13 onwards 47
5.4 Category wise approved number of installations 60
5.5 Category wise approved Energy Sales 61
5.6 Projected Distribution Losses – FY17-19 –MESCOM’s
Submission
62
5.7 Approved & Actual Distribution Losses – FY10-FY16 62
5.8 Approved Distribution Losses for FY16 63
5.9 Requirement of Electricity as filed by Licensees 64
5.10 Energy Requirement as field by MESCOM 64
5.11 Power Purchase requirement allowed for the control
period FY17 to FY19
65
5.12 Abstract of Power Purchase allowed for ESCOMs for
the control period FY17 to FY19
67
5.13 Power Purchase Cost of MESCOM for FY17 69
5.14 Power Purchase Cost of MESCOM for FY18 69
5.15 Power Purchase Cost of MESCOM for FY19 70
5.16 O & M Expenses for FY17-19 – MESCOM’s Proposal 73
5.17 Computation of Inflation Index for FY17 74
5.18 Approved O & M Expenses for FY17-19 75
vi
5.19 Depreciation FY17-19 – MESCOM’s Proposal 76
5.20 Approved Depreciation for FY17-19 77
5.21 Interest on Capital Loans - MESCOM’s Proposal 78
5.22 Approved Interest on Capital Loan for FY17-19 80
5.23 Interest on Working Capital – MESCOM’s Submission 80
5.24 Approved Interest on Working Capital for FY17-19 81
5.25 Interest on Consumer Security Deposits for FY17-19 –
MESCOM’s Proposal
82
5.26 Approved Interest on Consumer Security Deposits for
FY17-19
83
5.27 Approved Interest and Finance Charges for FY17-19 84
5.28 Return on Equity – MESCOM’s Proposal 85
5.29 Status of Debt Equity Ratio for FY17-19 86
5.30 Approved Return on Equity for FY17-19 86
5.31 Other Income – MESCOM’s Proposal 87
5.32 Approved other Income for FY17-19 87
5.33 Treatment of Regulatory Asset 89
5.34 Approved ARR for FY17-19 89
5.35 Approved Segregation of ARR FY17-19 91
5.36 Approved Revised ARR for Distribution Business – FY17-
19
91
5.37 Approved ARR for Retail Supply Business- FY17-19 91
5.38 Revenue Gap for FY17 92
6.1 Revenue Deficit for FY17 99
6.2 Wheeling charges 133
vii
LIST OF ANNEXURES
SL.NO. DETAILS OF ANNEXURES Page
No.
I Total Approved Energy and Cost of all ESCOMs for
FY17
206
II Approved Power Purchase of MESCOM – FY17 212
III Proposed and approved Revenue for FY17 218
IV Electricity Tariff – 2017 225
viii
ABBREVIATIONS
AAD Advance Against Depreciation
AEH All Electric Home
ABT Availability Based Tariff
A & G Administrative & General Expenses
ARR Annual Revenue Requirement
ATE Appellate Tribunal for Electricity
BBMP Bruhut Bangalore Mahanagara Palike
BDA Bangalore Development Authority
BESCOM Bangalore Electricity Supply Company
BMP Bangalore Mahanagara Palike
BST Bulk Supply Tariff
BWSSB Bangalore Water Supply & Sewerage Board
CAPEX Capital Expenditure
CCS Consumer Care Society
CERC Central Electricity Regulatory Commission
CEA Central Electricity Authority
CESC Chamundeshwari Electricity Supply Corporation
CPI Consumer Price Index
CWIP Capital Work in Progress
DA Dearness Allowance
DCB Demand Collection & Balance
DPR Detailed Project Report
EA Electricity Act
EC Energy Charges
ERC Expected Revenue From Charges
ESAAR Electricity Supply Annual Accounting Rules
ESCOMs Electricity Supply Companies
FA Financial Adviser
FKCCI Federation of Karnataka Chamber of Commerce & Industry
FR Feasibility Report
FoR Forum of Regulators
FY Financial Year
GESCOM Gulbarga Electricity Supply Company
GFA Gross Fixed Assets
GoI Government Of India
GoK Government Of Karnataka
GRIDCO Grid Corporation
HESCOM Hubli Electricity Supply Company
HP Horse Power
HRIS Human Resource Information System
ICAI Institute of Chartered Accountants of India
IFC Interest and Finance Charges
IW Industrial Worker
ix
IP SETS Irrigation Pump Sets
KASSIA Karnataka Small Scale Industries Association
KEB Karnataka Electricity Board
KER Act Karnataka Electricity Reform Act
KERC Karnataka Electricity Regulatory Commission
KM/Km Kilometre
KPCL Karnataka Power Corporation Limited
KPTCL Karnataka Power Transmission Corporation Limited
KV Kilo Volts
KVA Kilo Volt Ampere
KW Kilo Watt
KWH Kilo Watt Hour
LDC Load Despatch Centre
MAT Minimum Alternate Tax
MD Managing Director
MESCOM Mangalore Electricity Supply Company
MFA Miscellaneous First Appeal
MIS Management Information System
MoP Ministry of Power
MU Million Units
MVA Mega Volt Ampere
MW Mega Watt
MYT Multi Year Tariff
NFA Net Fixed Assets
NLC Neyveli Lignite Corporation
NCP Non Coincident Peak
NTP National Tariff Policy
O&M Operation & Maintenance
P & L Profit & Loss Account
PLR Prime Lending Rate
PPA Power Purchase Agreement
PRDC Power Research & Development Consultants
REL Reliance Energy Limited
R & M Repairs and Maintenance
ROE Return on Equity
ROR Rate of Return
ROW Right of Way
RPO Renewable Purchase Obligation
REC Renewable Energy Certificate
SBI State Bank of India
SCADA Supervisory Control and Data Acquisition System
SERCs State Electricity Regulatory Commissions
SLDC State Load Despatch Centre
SRLDC Southern Regional Load Dispatch Centre
STU State Transmission Utility
TAC Technical Advisory Committee
x
TCC Total Contracted Capacity
T&D Transmission & Distribution
TCs Transformer Centres
TR Transmission Rate
VVNL Visvesvaraya Vidyuth Nigama Limited
WPI Wholesale Price Index
WC Working Capital
xi
KARNATAKA ELECTRICITY REGULATORY COMMISSION,
BANGALORE - 560 001
Dated this 30th day of March, 2016
Order on MESCOM’s Annual Performance Review for FY15 & Annual
Revenue
Requirement for FY17-19 & Revision of
Retail Supply Tariff for FY17
In the matter of:
Application of MESCOM in respect of the Annual Performance Review for
FY15, Annual Revenue Requirement for FY17-19 and Revision of Retail Supply
Tariff for FY17, under Multi Year Tariff framework.
Present: Shri M.K.Shankaralinge Gowda Chairman
Shri H.D.Arun Kumar Member
Shri D.B.Manival Raju Member
O R D E R
The Mangalore Electricity Supply Company Ltd., (hereinafter
referred to as MESCOM) is a Distribution Licensee under the
provisions of the Electricity Act, 2003, and has, on 15.12.2015, filed
the following applications for consideration and orders:
a) Review of Annual Performance for FY15 and approval of
revised ARR thereon.
b) Approval of ARR for FY17-19
xii
c) Approval for revision of Retail Supply Tariff, for the financial
year 2016-17 (FY17)
In exercise of the powers conferred under Sections 62, 64 and other
provisions of the Electricity Act, 2003, read with KERC (Terms and
conditions for Determination of Tariff for Distribution and Retail Sale of
Electricity) Regulations 2006, and other enabling Regulations, the
Commission has considered the applications and the views and
objections submitted by the consumers and other stakeholders. The
Commission’s decisions are given in this order, Chapter wise.
xiii
CHAPTER – 1
INTRODUCTION
1.0 Mangalore Electricity Supply Company Ltd.- (MESCOM):
The MESCOM is a Distribution Licensee under Section 14 of the
Electricity Act, 2003 (hereinafter referred to as the Act). The MESCOM
is responsible for purchase of power, distribution and retail supply of
electricity to its consumers and also providing infrastructure for open
access, Wheeling and Banking in its area of operation which includes
four Districts of the State as indicated below:
1. Dakshina
Kannada
2. Udupi
3. Shivamogga
4. Chikamagaluru
The MESCOM is a registered company under the Companies Act, 1956,
incorporated on 30thApril, 2002. The MESCOM commenced its
operations on 1stJune, 2002.
xiv
At present the MESCOM’s area of operations are structured as follows:
O&M Zones O&M Circles O&M Divisions
Mangalore
Mangalore Circle
Mangaluru-1
Mangaluru-2
Bantwal
Puttur
Udupi Circle
Udupi
Kundapura
Shivamogga Circle
Shivamogga
Bhadravathi
Sagar
Shikaripura
Chikamagaluru Circle
Kadur
Chikamagaluru
Subsequently, the MESCOM was split into two companies namely the
Mangalore Electricity Supply Company Ltd., with headquarters at
Mangalore covering five districts namely Dakshina Kannada, Udupi,
Shimoga, Chikkamagauru and Kodagu and the Chamundeshwari
Electricity Supply Corporation Ltd., (CESC) with headquarters at Mysore
covering four districts namely Mysore, Chamarajanagar, Mandya and
Hassan. This came into effect from 1st April, 2005.
Further, the Madikeri Division (Kodagu District) was transferred from the
MESCOM to the CESC with effect from 1st April, 2006.
The O & M divisions of the MESCOM are further divided into forty nine
sub-divisions with each of the sub-divisions having two to three O & M
xv
section offices. There are 189 O & M accounting / non-accounting
section offices.
The section offices are the base level offices looking into operation
and maintenance of the distribution system in order to provide reliable
and quality power supply to the MESCOM’s consumers.
1.1 The MESCOM at a glance:
The profile of MESCOM is as indicated below:
Sl.
No.
Particulars
Statistics
1 Area Sq. Km. 26222
2 Districts No.s 4
3 Taluks No.s 22
4 Population Lakhs 61.55
5 KPTCL Sub-stations (66 kV &above) No.s 82
9 MESCOM Sub-stations (33 kV) No.s 36
10 Distribution Transformer Centers No.s 51594
11 HT lines Ckt. Km 30779
8 LT lines Ckt. Km 76181
6 Net Fixed Assets (As on 31-03-2015) Rs. in Cr. 872.92
7 No. of Consumers Lakhs 21.18
12 Energy Sales in FY-15 MU 4146.37
13 Rev. Demand in FY15 Rs. in Cr. 2281.60
14 Rev. Collection in FY-15 Rs. in Cr. 2172.53
15 Revenue Collection Efficiency in FY-15 % 95.22% Note: Data as per Tariff filing of MESCOM dtd.15.12.2015
1.2 Number of Consumers, Sales in MU to various categories of
consumers and details of Revenue for FY15 as filed by
MSECOM are as follows:
Category No. of
Installation
Sales in
MU
Revenue
in Rs.Crs.
Domestic 1557078 1235.2 550.14
Commercial 182823 458.55 364.57
Industrial 26555 836.29 545.93
Agriculture 263567 1116.58 429.90
Others 44602 499.74 391.06
Total 2074625 4146.37 2281.60
xvi
M/s MSEZL, as a deemed licensee, is purchasing power from MESCOM as per
the bulk supply tariff determined by the Commission. M/s MSEZL, has filed
separate application for approval of ARR and retail supply tariff for its
distribution and supply area for the control period FY17 - 19.
The MESCOM has filed its application for approval of Annual Performance
Review for FY15, Annual Revenue Requirement (ARR) for FY17-19 and Retail
Supply Tariff for FY17.
MESCOM’s application, the objections / views of stakeholders thereon and the
Commission’s decisions are discussed in detail in the subsequent Chapters of this
Order.
xvii
CHAPTER – 2
SUMMARY OF FILING & TARIFF DETERMINATION PROCESS
2.0 Background for Current Filing:
The Commission in its Tariff Order dated 6th May, 2013 had approved
the ERC for FY14 to FY16 and the Retail Supply Tariff of MESCOM for
FY14 under MYT principles for the control period of FY14 to FY16.
MESCOM in its present application filed on 15th December, 2015 has
sought approval for the Annual Performance Review (APR) for FY15
based on the audited accounts, ARR for the fourth control period i.e.,
FY17-19 and Revised Retail Supply Tariff for FY17.
2.1 Preliminary Observations of the Commission:
After a preliminary scrutiny of applications, the Commission had
communicated its observations to MESCOM on 1st January, 2016. The
preliminary observations were mainly on the following points:
Capital Expenditure for FY15
Proposed capex for FY17-19
Estimation of Sales for FY17-19
Estimation of sales to IP sets consumption for FY17-19
Power Purchase
Interest and Finance charges
Other new proposals
Compliance to Directives issued by the Commission
MESCOM in response has furnished its replies on 11th January, 2016. The
replies furnished by MESCOM are considered in the respective Chapters of
this Order. Further, the Commission also held a validation meeting to discuss
the proposals of MESCOM on 10th February, 2016.
xviii
2.2 Public Hearing Process:
As per the Karnataka Electricity Regulatory Commission (Terms and
Conditions for Determination of Tariff for Distribution and Retail Sale of
Electricity) Regulations, 2006, read with the KERC Tariff Regulations
2000, and KERC (General and Conduct of Proceedings) Regulations,
2000, the Commission vide its letter dated 14th January, 2016 treated
the application of the MESCOM as petition and directed the MESCOM
to publish the summary of ARR and Tariff proposals in the newspapers
calling for objections if any from interested persons.
Accordingly, the MESCOM has published the same in the following
newspapers:
Name of the News Paper Language Date of Publication
THE NEW INDIAN EXPRESS English
17/1/2016
&
18/1/2016
THE HINDU
VIJAYAVANI
Kannada
VIJAYA KARNATAKA
MESCOM’s application on APR for FY15, ARR for FY17-19 and revision of
retail supply tariff for FY17 were also hosted on the web sites of MESCOM
and the Commission for the ready reference and information of the general
public.
In response to the application of MESCOM, the Commission has received
three hundred and fifty eight statements / letters of objections. MESCOM has
furnished its replies to all these objections. The Commission has held a
Public Hearing on 29th February, 2016 at Mangaluru. The details of the
written / oral submissions made by various stake holders and the response
from MESCOM thereon have been discussed in Chapter - 3 / Appendix to
this Order.
xix
2.3 Consultation with the Advisory Committee of the Commission:
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:
Performance of KPTCL / ESCOMs during FY15
Major items of expenditure of KPTCL / ESCOMs
Members of the Committee have offered valuable suggestions on the
proposals. The Commission has taken note of these suggestions while
issuing the order.
xx
CHAPTER – 3
PUBLIC CONSULTATION
SUGGESTIONS / OBJECTIONS & REPLIES
3.1 In pursuance of the provisions of section 64 of the Electricity Act, 2003,
the Commission undertook the process of public consultation, to
obtain suggestions/views/objections from the interested stake-holders,
on the application filed by MESCOM, for Annual Performance Review
for FY15, approval of ERC and ARR for FY17, FY18 and FY19 and
approval of revised retail supply tariff for FY17, under the MYT Principle.
In the written submissions as well as during the public hearing, the
Stake-holders and the public have raised several objections/ made
suggestions, on the Tariff Application. The names of the persons who
have filed written objections and made oral submissions are given
below:
List of persons who filed written objections:-
Sl.
No
Application No. Name & Address of Objectors
1 MB -01 Mangalore, SEZ
2 MB-02 Sri Yagnanarayana M.N, General Secretary, Laghu
Udyog Bharati – Karnataka, Bengaluru.
3 MB- 03 Sri Balasubaramanya Bhat. J, Belthangady Taluk.
4 MB-04 SriM.G.Bharath, Maddikere
5 MA- 01 to MA-62 Sri K.C. Umesh & Others Thirthahalli.
6 MA-63 to MA-128 Sri K. Narasimha Nayak & Others Thirthahalli.
7 MA-129 Sri Anil Savur D, Secretary, The Karnataka Planters’
Association, Chikmagalur
8 MA-130 Sri K.B. Arasappa, Hon. Gen Secretary, KASSIA,
Bengaluru.
9 MA- 131 Sri Lokaraj, Secretary, Federation of Karnataka
Chambers of Commerce and Industry, Bengaluru.
xxi
10 MA-132 Sri Rajendra Suvarna, President, The Karnataka
Coastal Ice Plant and Cold Storage Owners
Association, Udupi.
11 MA-133 to 232 Sri Shankarappa & Others Thirthahalli
12 MA- 233 Sri Sushil K Shenoy, Chief Executive Officer, ONGC
Mangalore Petrochemicals Limited, Mangaluru.
13 MA-234 Sri Venkatagiri Rao, Secretary Consumers’ Forum,
Sagar.
14 MA-235 Ms.Vathika Pai, Secretary, Kanara Chamber of
Commerce & Industry, Mangaluru.
15 MA-236- MA-242 Sri T.S. Prakash & others, Thirthahalli.
16 MA- 243 Sri Sathyanaryana Udupa, Principal Secretary,
Bharathiya Kissan Sangha, Udupi District.
17 MA-244 to MA-343 Sri K. Parameshappa & others, Tarikere and Kadur
18 MA-344 Sri D. Subrahmanya Bhat, Dakshina Kannada District.
19 MA-345 Sri Ajith Kamath, Secretary, Kanara Small Industries
Association.
20 MA-346 to MA-354 Sri Srinivasa Bhat & others Udupi District Krishika
Sangha.
21 AE-01 Sri P.N. Karanth, Kundapura.
22 AE-02 Sri Praveen Sood, IPS, Additional Director General of
Police, Administration, Bengaluru
3.2 List of the persons, who made oral submissions during the Public
Hearing, held on 29.02.2016.
SL.No. Names & Addresses of Objectors
1 Sri Satvinder, Indus Towers.
2 Sri Ramamohan Pai, Sri B.A. Nazeer, Sri Srinivasa Kamath, Sri S.S.
Kamath, Kanara Chamber of Commerce & Industry & Kanara Small
Industries Association.
3 Sri Devadas Shetty & Uday Kumar, Karnataka Coastal Ice Plant &
Cold Storage Owners Association.
4 Sri Bala Subramanya Bhat, Savayava Krishi Parivara
xxii
5 Sri Narasimha Nayak, President, Thirthahalli Irrigation Pumpset Users
Association
6 Sri Ramakrishna Sharma, Udupi Zilla Krishika Sangha.
7 Sri Kudi Srinivasa Bhat, Udupi Zilla Krishika Sangha.
8 Sri Venugopal M, Udupi Zilla Krishika Sangha.
9 Sri Anil Savur, Karnataka Planters Association
10 Sri B.V. Poojary, President, Bharatiya Kissan Sangha, Udupi.
11 Sri Satyanarayana Udupa, General Secretary, Bharatiya Kissan
Sangha, Udupi.
12 Sri V. Suryanarayana, Vice President, Mangalore SEZ.
13 Sri K. Parameshwarappa, Bharatiya Kissan Sangha, Chikmagalur.
14 Sri M.G. Lokeshappa, Kallapura, Tarikere Taluk, Bharatiya Kissan
Sangha.
15 Sri K.N. Venkatagiri Rao, Balakedarara Vedike, Sagar
16 Sri Chethan Jain, IEx.
17 Sri Dr. K.V.Rao, Director, Regional Science Centre.
18 Sri K.Jayaraj Pai representing KASSIA & FKCCI, Bangalore.
19 Sri Manjunath M.M & Sri Bharath, Vidyuth Balakedarara Sangha
Mudigere.
20 Sri Eshwar Raj, Journalist, Mangalore.
21 Sri Hanif Saheb, Human Rights Federation, Member, Mangalore
3.3 The gist of the objections, replies by MESCOM and the Commission’s
views is in Appendix-1 of this order.
xxiii
CHAPTER – 4
ANNUAL PERFORMANCE REVIEW FOR FY15
4.0 MESCOM’s Application for APR for FY15:
MESCOM, in its application dated 15th December, 2015, has sought
approval of its revised ARR in the Annual Performance Review (APR) for
FY15 based on the Audited Accounts.
The Commission in its letter dated 1st January, 2016 had communicated
its preliminary observations on its application. MESCOM, in its letter
dated 11th January, 2016 has furnished its replies to the preliminary
observations of the Commission.
The Commission in its Multi Year Tariff (MYT) Order dated 6th May, 2013
had approved MESCOM’s Annual Revenue Requirement (ARR) for
FY14 – FY16. Further, in its Tariff Order dated 12th May, 2014, the
Commission had approved the APR for FY13 and had revised the ARR
for FY15 along with Retail Supply Tariff for FY15.
The Annual Performance Review for FY15 based on MESCOM’s Audited
Accounts is discussed in this Chapter.
4.1 MESCOM’s Submission:
MESCOM has submitted its proposals for revision of ARR for FY15 based
on the Audited Accounts as follows:
xxiv
TABLE – 4.1
ARR for FY15 – MESCOM’s Submission Amount in Rs. Crores
Sl.
No Particulars As Filed
1 Energy @ Gen Bus in MU 4838.62
2 Energy @ Interface in MU 4688.54
3 Distribution Losses in % 11.57
Sales in MU
4 Sales to other than IP & BJ/KJ 3046.70
5 Sales to IP & BJ/KJ 1099.48
Total Sales 4146.18
Revenue
6 Revenue from tariff and Misc. Charges 1760.59
7 Revenue Subsidy 430.75
Total 2191.34
Expenditure
8 Power Purchase Cost 1467.63
9 Transmission charges of KPTCL 184.41
10 SLDC Charges 6.10
Power Purchase Cost including cost of
transmission 1658.14
11 Employee Cost 226.41
12 Repairs & Maintenance 34.94
13 Admin & General Expenses 60.42
Total O&M Expenses 321.77
14 Depreciation 63.68
Interest & Finance charges
15 Interest on Loans 63.44
16 Interest on Working capital 34.61
17 Interest on consumer deposits 33.96
18 Other Interest & Finance charges 2.19
19 Less interest & other expenses capitalised 2.39
Total Interest & Finance charges 131.81
20 Other Debits 6.46
21 Net Prior Period Debit/Credit (28.62)
22 Return on Equity 66.23
23 Provision for taxation (3.43)
24
Funds towards Consumer
Relations/Consumer Education 0.05
25 Other Income 38.63
26 Tariff subsidy of prior period 23.67
Net ARR 2204.56
xxv
Considering the revenue of Rs.2191.34 Crores against a net ARR of
Rs.2204.56 Crores, MESCOM has reported a gap in revenue of Rs.13.22
Crores for FY15.
4.2 MESCOM’s Financial Performance as per Audited Accounts for FY15:
Overview of the financial performance of MESCOM for FY15, as per its
Audited Accounts is given below:
TABLE – 4.2
Financial Performance of MESCOM for FY15
Amount in Rs. Crores
Sl.
No. Particulars FY15
Receipts
1 Revenue from Tariff and misc. charges 1663.88
2 Tariff Subsidy 425.93
Total Revenue 2089.81
Expenditure
3 Power Purchase Cost 1467.63
4 Transmission charges of KPTCL 184.41
5 SLDC Charges 6.10
Power Purchase Cost including cost of transmission 1658.14
6 O&M Expenses 322.81
7 Depreciation 63.95
Interest & Finance charges
8 Interest on Loans 50.29
9 Interest on Working capital 25.08
Interest on belated payment of power purchase 85.43
10 Interest on consumer deposits 33.96
11 Other Interest & Finance charges 2.20
12 Less: Interest and other expenses capitalized 3.39
Total Interest & Finance charges 193.57
13 Other Debits 6.19
14 Net Prior Period Debit/Credit (28.62)
15 Other income 140.17
16 Income tax 0
Net ARR 2075.87
As per the Audited Accounts, MESCOM has earned a profit of Rs.13.93
Crores for FY15. The profits / losses reported by MESCOM in its audited
accounts in the previous years are as follows:
xxvi
TABLE – 4.3
MESCOM’s Accumulated Profit / Losses
Particulars
Amount in
Rs.Crs
Accumulated losses as at the end of FY10 50.73
Profit earned in FY11 1.70
Profit earned in FY12 6.41
Losses incurred in FY13 (12.60)
Profits earned in FY14 0.20
Profits earned in FY15 13.93
Accumulated losses as at the end of FY15 85.57
As seen from the above table, the accumulated profits are Rs.85.57
Crores.
Commission’s 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 Sales for FY15:
a) Sales - other than IP sets:
The Commission in its Tariff order dated 12.05.2014 had approved
total sales to various consumer categories at 4193.00 MU as against
xxvii
the MESCOM’s proposal of 4143.19 MU. The actual sale of energy of
MESCOM, as per the audited accounts, is 4103.29 MU [excluding SEZ,
KPCL & wheeled energy] indicating a short fall in sales to the extent of
89. 70 MU, as against the approved sales. The reduction in sales is
67.88 MU in LT-categories and 21.83 MU in HT-categories. It is noted
that, as against approved sales[excluding KPCL sales and supply to
SEZ] of 3043.01 MU to categories other than BJ/KJ and IP sets, the
actual sales achieved by MESCOM is 3003.82 MU, resulting in the
reduction of sales to these categories by 39.18 MU. Further, MESCOM
has sold 1099.47 MU to BJ/KJ and IP category against approved sales
of 1149.99 MU, resulting in reduction sales to these categories by 50.52
MU.
The actual share of sales to categories other than BJ/KJ and IP sets is
73.21%, as against the estimated share of 72.57% resulting in 0.64
percentage point increase in share to these categories, while the
actual share of sales to BJ/KJ and IP sets has decreased by the same
percentage.
b) Sales to IP sets
In its Tariff Order dated 6th May, 2013, the Commission had approved a
specific consumption of IP sets as 4,597 units/installation/annum for the
entire control period of the FY14 to the FY16, whereas, as per the IP set
consumption reported by the MESCOM in its filing, the specific
consumption works out to 4,280 units /installation/annum for the FY15,
which indicates a decrease in the specific consumption by 317
units/installation/annum. The total IP set consumption reported by the
MESCOM for the FY15 was 1086.18 MU as against 1134.10 MU sales
quantity approved by the Commission. Thus, the specific consumption
has decreased by 317 units /installation/annum with the corresponding
decrease in overall sales by 47.92 MU as compared to the quantum
approved by the Commission.
Further, the Commission had approved 2,48,638 as number of
installations which would be serviced in the FY15; whereas the actual
number of installations serviced as reported by the MESCOM was
xxviii
2,60,399. The difference in number of installations is 11,761. This
indicates around 5 per cent increase in the number of installations as
compared to that approved by the Commission for the FY15. Further, it
is also noted that the increase in number of installations has not
resulted in increase in sales which indicates that the number of
installations may have been serviced during the later half of the FY15.
The Commission in its Tariff Order dated 12th May, 2014, had directed
the MESCOM to furnish every month to the Commission, the IP set
consumption by considering the actual readings of individual IP set
installations, in view of substantial progress achieved in metering of IP
sets, instead of assessing the IP set consumption based on the meter
readings of sample DTCs feeding predominant IP loads. However, the
MESCOM has not submitted the total IP set consumption based on the
metered data of individual IP set installations but has submitted the IP
consumption based on the meter readings of sample DTCs feeding
predominant IP set loads, the methodology followed previously for
assessing the IP set consumption.
The Commission in its preliminary observations on the tariff filing by the
MESCOM had directed it to justify its claims of IP consumption of
1,086.18 MU considered for the FY15, with necessary data in its support.
The MESCOM, in its reply to the preliminary observations, has submitted
the data in respect of IP set consumption from April, 2014 to March,
2015 with the details of assessment based on the meter readings of
sample DTCs feeding predominant IP set loads, instead of IP set
consumption based on the metered data of individual IP set
installations as directed. The MESCOM has not furnished any reason as
to why it has not considered the meter readings of individual IP set
installations for arriving at a total consumption of 1,086.18 MU for the
FY15.
xxix
Further, during the validation meeting held on 10.02.2016, the
MESCOM, while submitting the data of IP set consumption, has
reiterated that the total IP consumption for the FY15 has been arrived
at on the basis of energy meter readings of sample DTCs feeding
predominant IP set loads, instead of IP set consumption based on the
metered data of individual IP set installations and requested the
Commission to approve the sales of 1086.18 MU for the FY15.
The Commission notes that the specific consumption as well as the
overall sales to IP sets has decreased as compared to the quantity
approved by the Commission for the FY15. It is also noted that NJY is
not implemented in the MESCOM area to compute the IP set
consumption on the basis of metered data of segregated agricultural
feeders unlike in other ESCOMs; but the MESCOM should have
considered the meter readings of individual IP sets, where substantial
metering of IP sets has been achieved, instead of arriving at the total
consumption based on the readings of sample meters fixed to DTCs
feeding predominant IP set loads. Henceforth, the MESCOM shall
consider the actual readings of IP sets wherever metering has been
completed and report the actual consumption of IP sets on the basis of
data from IP set meters every month to the Commission as this would
be an accurate measure of IP set consumption.
For the present, in the absence of 100 per cent metered data of IP sets,
the Commission decides to accept the sales to IP sets for the FY15 as
1,086.18 MU as submitted by the MESCOM.
The category wise sales approved by Commission and the actuals for
FY15 are indicated in the table below:
TABLE – 4.4
Approved & Actual Sales for FY15
Figures in MU
Category Approved Actuals
Actuals –
Approved (
Difference)
LT-2a* 1224.76 1221.90 -2.86
xxx
LT-2b 11.98 11.49 -0.49
LT-3 306.93 304.69 -2.24
LT-4b 0.78 1.22 0.44
LT-4c 5.15 5.97 0.82
LT-5 128.90 131.44 2.54
LT-6 111.17 107.63 -3.54
LT-6 62.12 58.20 -3.92
LT-7 27.22 19.12 -8.10
HT-1 86.96 83.34 -3.62
HT-2a 720.61 710.78 -9.83
HT-2b 221.13 153.86 -67.27
HT-2c 77.16 146.64 69.48
HT-3a & b 23.40 23.22 -0.18
HT-4 16.13 14.40 -1.73
HT-5 18.60 9.92 -8.69
Sub total 3043.01 3003.82 -39.18
BJ/KJ 15.89 13.29 -2.60
IP 1134.10 1086.18 -47.93
Sub total 1149.99 1099.47 -50.52
Grand
total**
4193.00 4103.29 -89.70
*Including BJ/KJ installations consuming more than 18 units/month
**Excludes sale of 10.68 MU to KPCL , 8.64 MU to SEZ and wheeled energy of 32.39MU.
From the above table it is noted that the major categories
contributing to the reduction in sales with respect to the approved
figures are HT Commercial (67.27 MU) and IP sets (47.93 MU).
The Commission during the course of validation had sought
explanation from MESCOM regarding unbilled sales of 20 MU
declared in revised ARR for FY15. MESCOM, in its replies, has stated
that, subsidy in respect of IP sets is being claimed on actual amount
billed as per DCB and the unbilled sales (both revenue & energy) are
being considered for energy audit purpose on accrual basis and
therefore subsidy on unbilled sales is not claimed from GoK. Since the
revenue demand for this unbilled sales is included in the revenue for
sale of power to IP sets in the revised ARR for FY15, this has to be
claimed from the Government as subsidy.
As such the Commission approves 4103.29 MU as the overall sales to
various categories of consumers of MESCOM for FY-15. In addition,
10.68 MU sold to KPCL is also approved. The sales made by the
xxxi
Mangalore SEZ to its consumers after procuring power from MESCOM
are dealt with separately in the order passed in the case of
Mangalore SEZ.
4.2.2 Distribution Losses for FY15:
MESCOM’s Submission:
The Commission had approved distribution losses for FY15 as
shown in the table below:
Range FY15
Upper limit 11.75%
Average 11.50%
Lower Limit 11.25%
MESCOM has reported a loss level of 11.56% in its annual
accounts for FY15.
1 Energy at Interface Points in MU 4688.54
2 Total sales in MU 4146.37
3 Distribution losses as a percentage of
input energy at IF points 11.56%
Commission’s analysis and decisions:
The distribution losses of 11.56% reported by MESCOM is based on the
sales of 4146.37 MU as against the energy of 4688.54 MU at interface
points. MESCOM in its audited accounts has reported that 32.39 MU of
energy is wheeled energy which is considered for loss calculations.
Considering the approved range of losses for FY15, the actual
distribution losses of MESCOM falls within the approved range of losses.
Hence no penalty/incentive regarding distribution loss has been
factored for FY15.
4.2.3 Power Purchase for FY15:
MESCOM’s submission:
The Commission in its Tariff order dated 12th May, 2014 had approved
source wise quantum and cost of power purchase for FY15. MESCOM,
xxxii
in its application has submitted the details of actual power purchase
for FY15 for the purpose of review of its Annual Performance. The
details of power purchases made during FY15 are indicated as under:
TABLE – 4.5
MESCOM’s POWER PURCHASE FOR FY 15
Particulars
Actuals for FY15 Approved for FY15
Difference of Actuals
over the Approved-for
FY15
% increase /decrease over
an approved figures
Energy
in MUs
Cost in
Rs. Crs.
Rate
in Rs
per
Unit
Energy
in MUs
Cost in
Rs. Crs.
Rate
in Rs
per
Unit
Energy
in MUs
Cost
in Rs
Crs.
Rate
in Rs
per
Unit
Energy Cost Rate
KPCL Hydel
Stations
1274.85 70.77 0.56 1297.75 68.70 0.53 -22.90 2.07 0.03 -1.76 3.01 -22.90
KPCL-
Thermal
Stations
1285.38 489.45 3.81 1337.92 509.52 3.81 -52.54 -20.07 0.00 -3.93 -3.94 -52.54
Total 2560.23 560.22 2.19 2635.67 578.22 2.19 -75.44 -18.00 -0.01 -2.86 -3.11 -75.44
CGS 967.87 311.42 3.22 1045.73 306.77 2.93 -77.86 4.65 0.28 -7.45 1.52 -77.86
Major IPPs 82.99 37.30 4.49 53.10 24.24 4.56 29.89 13.06 -0.07 56.29 53.88 29.89
IPPs -Minor
(NCE
Projects)
729.90 274.06 3.75 875.19 312.10 3.57 -145.29 -38.04 0.19 -16.60 -12.19 -145.29
Other
States
Projects
14.01 4.40 3.14 17.14 5.46 3.19 -3.13 -1.06 -0.04 -18.26 -19.41 -3.13
Short
/Medium
term
including U
I & Sce-11
444.28 227.40 5.12 298.66 155.79 5.22 145.62 71.61 -0.10 48.76 45.97 145.62
Transmissio
n Charges
(KPTCL &
PGCIL)
216.61 214.79 0.00 1.82 0.00 0.85
LDC
Charges
(POSOO &
SLDC)
6.36 2.29 0.00 4.07 0.00 177.73
Energy
Balancing
39.34 20.17 5.13 39.34 20.17 5.13
Others
Charges
0.20 0.00 0.20 0.00
TOTAL 4838.62 1658.14 3.43 4925.49 1599.66 3.25 -86.87 58.48 0.18 -1.76 3.66 5.52
Commission’s analysis and decisions;
1. The actual power purchase for FY15 as filed by MESCOM for
approval of its Annual Performance Review is 4838.62 MU at a cost
of Rs.1658.14 Crores, as against the approved quantum of 4925.49
MU at Rs.1599.66 Crores. Thus, there is a reduction in actual
xxxiii
quantum of power purchase to an extent of 86.87 MU but with an
increase in the cost to an extent of Rs. 58.48 Crores.
2. On an analysis of the source-wise approved and actual power
purchases, the following deviations in the quantum of energy and
its cost of power purchase are found:
i. As against the approved quantum of 4925.49 MU, the actual
power purchased by the MESCOM is 4838.62 MU, indicating
decrease in sales to an extent of 86.87 MU, which is about 1.76%
of the approved quantum. Such decrease during FY14 was 2.52%
and thus the accuracy of projection of approved power
purchase has increased from 97.48% to 98.24 %.
ii. The reduced purchase of energy is reflected in reduction in sales.
iii. On an analysis of the source wise power purchase, it is found that,
except from Major IPPs, the energy supply from other sources has
decreased to an extent of 301.72 MU including a cost of Rs.52.45
Crores. Consequently, in excess of approved quantum MESCOM
has purchased additional Short term power, to a tune of 145.62
MU thus incurring an additional cost of Rs.71.61 Crores. This has
resulted in increase in overall power purchase cost to a tune of
Rs.58.48 Crores. Consequent to reduction in supply of energy
from KPCL Thermal, CGS, IPPs, NCE and projects located outside
the States, the power purchase cost has increased by 18 Paise
per unit for FY15.
iv. All these factors including the change in the source- wise mix of
supply and reconciliation of energy and its cost among ESCOMs
have resulted in increased average power purchase cost of
MESCOM at the rate of Rs.3.43 per KWh as against the approved
rate of Rs.3.25 per unit, leading to an overall increase by Rs.0.18
per unit. During FY 14 the increase in per unit cost was 8.31% i.e.,
Rs. 0.27per unit and during FY15, the percentage increase in the
cost is 5.52%, i.e., Rs.0.18 per unit.
xxxiv
v. The D1 format of MESCOM indicates the energy balancing
among other ESCOMs of 39.34 MU amounting to Rs. 14.96 Crores,
as against 39.36 MU costing Rs.32.18 Crores, as per the SLDC
Energy Balancing Statement. Considering the energy balancing
statement furnished by the SLDC, the actual power purchase of
MESCOM would be 4838.64 MU at a cost of Rs 1670.15 Crores. As
the SLDC has furnished the final energy balancing statement after
the accounts of MESCOM were audited during August, 2015, the
Power Purchase as per the Energy Balancing Statement furnished
by SLDC could not be accounted for. Thus, there is a difference in
the cost to an extent of Rs 12.01 Cr which needs to be accounted
for, during FY16.
3. The Commission notes that the SLDC has not implemented the intra-
state ABT scheme. As per the directions issued by the Government
of Karnataka vide its letter dated 28th January 2016, intra state ABT
scheme has to be implemented immediately by the KPTCL and
ESCOMs. The Commission therefore directs all the stakeholders to
take appropriate action immediately to implement intra-state ABT
scheme and to host the details thereof details on their respective
websites.
4. The Commission in its Tariff order dated 2nd March, 2015 had
directed MESCOM to move the Government to effect necessary
adjustments in the tariff subsidy payable to the ESCOMs and ensure
that there are no inter ESCOM payments outstanding in their
accounts. Further, MESCOM was also directed to reconcile the inter
ESCOM exchanges and its costs duly making necessary
adjustments to ensure proper accounting of energy and its cost.
5. MESCOM is directed to reconcile the inter-ESCOM energy
exchanges and its costs every month and such costs shall be
collected/paid, out of the tariff subsidy received from Government
of Karnataka, to ensure proper accounting of energy and its cost.
xxxv
6. In terms of the MYT Regulations, the Commission having recognized
the above facts decides, to consider 4838.62 MU at a cost of Rs.
1658.14 Crores towards power purchase for FY15.
4.2.4 Renewable Purchase Obligation (RPO) compliance by MESCOM for
FY15:
MESCOM has submitted that its achievement of non-solar RPO and
solar RPO are at 14.80% and 0.88% respectively as against target of
10% and 0.25% respectively, as indicated below:
TABLE – 4.6
RPO compliance as submitted by MESCOM for FY15
Company
Name
Total
Input
Energy
(MU)
Non-Solar RPO Solar RPO
Target Achieved Target Achieved
(MU) (%) (MU) (%) (MU) (%) (MU) (%)
MESCOM 4838.62 483.86 10 715.88 14.80 12.10 0.25 42.53 0.88
The Commission has perused the source-wise renewable energy
purchased, as submitted by MESCOM under D1 format of the Petition
vis-à-vis the RPO compliance data submitted by MESCOM in its reply to
the Commission’s preliminary observations.
The Commission has approved total input energy of 4838.62 MU for
FY15 in its APR. Thus, MESCOM was required to purchase 483.86 MU of
Non-solar energy and 12.10 MU of solar energy to meet its RPO targets.
Based on the information furnished, the Commission notes that
MESCOM has achieved 14.80% of non-solar and 0.88% of solar RPO for
FY15. Thus, MESCOM has over-achieved its non-solar and solar RPO
target by 4.80 percentage points and 0.63 percentage points
respectively.
4.2.5 Operation and Maintenance Expenses:
MESCOM’s Submission:
xxxvi
MESCOM has sought approval of O&M expenditure of Rs.321.77
Crores for FY15. The break-up of O&M expenses are as follows:
TABLE – 4.7
Normative O & M Expenses – MESCOM’s submission
Amount in Rs. Crores.
Particulars FY15
Employee cost 226.41
Administrative & General Expenses 60.42
Repairs and Maintenance 34.94
Total O & M Expenses 321.77
Commission’s analysis and decisions:
The Commission in its Tariff Order dated 12th May, 2014 had approved
O&M expenses for FY15 as detailed below:
xxxvii
TABLE – 4.8
Approved O&M Expenses as per Tariff Order dated 12.05.2014
Particulars FY15
No. of installations as per actuals as per Audited Accts 2063968
Weighted Inflation Index 6.89%
CGI based on 3 Year CAGR 3.96%
Actual O&M expenses for FY13 - in Rs.Crs. 260.07
Total approved O&M Expenses for FY15 – in Rs.Crs. 315.06
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 the CERC with CPI and WPI in a ratio of 80 : 20, the allowable rate of
inflation for FY15 is computed as follows:
Year WPI CPI Composite
Series Yt/Y1=Rt Ln Rt
Year
(t-1)
Product [(t-
1)* (LnRt)]
2003 92.6 107 104.12
2004 98.72 111.1 108.624 1.04 0.04 1 0.04
2005 103.37 115.8 113.314 1.09 0.08 2 0.17
2006 109.59 122.9 120.238 1.15 0.14 3 0.43
2007 114.94 130.8 127.628 1.23 0.20 4 0.81
2008 124.92 141.7 138.344 1.33 0.28 5 1.42
2009 127.86 157.1 151.252 1.45 0.37 6 2.24
2010 140.08 175.9 168.736 1.62 0.48 7 3.38
2011 153.35 191.5 183.87 1.77 0.57 8 4.55
2012 164.93 209.3 200.426 1.92 0.65 9 5.89
2013 175.35 232.2 220.83 2.12 0.75 10 7.52
2014 182 246.9 233.92 2.25 0.81 11 8.90
A= Sum of the product column 35.36
B= 6 Times of A 212.19
C= (n-1)*n*(2n-1) where n= No of years of data=12 3036.00
D=B/C 0.07
g(Exponential factor)= Exponential (D)-1 0.0724
e=Annual Escalation Rate (%)=g*100 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.
xxxviii
b) The three year compounded annual growth rate (CAGR) of the
number of installations considering the actual number of
installations as per audited accounts up to FY15.
c) The weighted inflation index (WII) at 7.24% as computed above.
d) Efficiency factor at 1% as considered in the earlier two control
periods.
Thus, the normative O & M expenses for FY15 will be as follows:
Particulars FY15
No. of Installations As per actuals as per Audited Accts 2074626
Weighted Inflation Index 7.24%
Consumer Growth Index (CGI) based on 3 Year CAGR 4.14%
Base year O & M expenses for FY13 excluding P&G
contribution - Rs. Crores 217.49
O&M Index= 0&M (t-1)*(1+WII+CGI-X)- Rs. Crores. 264.32
The above normative O & M expenses have been computed without
considering the contribution to Pension and Gratuity trust.
The Commission has treated the employee costs on account of
contribution to P&G Trust as uncontrollable O&M expenses. This
component has been allowed beyond the normative O&M expenses
to enable the ESCOMs to meet their actual employee costs.
MESCOM in its audited accounts for FY15 has indicated an amount of
Rs.38.80 Crores towards contribution to Pension and Gratuity trust.
Considering the request of MESCOM to treat gratuity contribution as
uncontrollable O & M expenses, the Commission computes the
allowable O & M expenses for FY15 as follows:
TABLE – 4.9
Allowable O & M Expenses for FY15
Amount in Rs. Crores
Sl.
No. Particulars FY15
1 Normative O & M expenses 264.32
2 Additional employee cost (uncontrollable
O & M expenses)
38.80
3 Allowable O & M expenses for FY15 303.12
xxxix
Thus, the Commission decides to allow an amount of Rs.303.12 Crores
as O&M expenses for FY15.
4.2.6 Depreciation:
MESCOM’s Submission:
MESCOM in its application has claimed an amount of Rs.63.68 Crores
as depreciation worked out after deducting depreciation on account
of assets created out of consumer’s contributions / grants as per
Accounting Standards (AS) – 12.
As per the audited accounts, the asset wise depreciation is as follows:
Amount in Rs. Crores
Particulars
Opening
Balance of
Asset as on
01.04.2014
Closing
Balance of
Asset as on
31.03.2015
Depreciation
Buildings 29.11 30.85 1.01
Civil 2.21 2.43 0.13
Other Civil 0.42 0.63 0.02
Plant & M/c 212.22 221.33 12.88
Line, Cable Network 1022.26 1120.70 49.63
Vehicles 3.89 3.98 0.08
Furniture 3.06 3.28 0.17
Office Equipment 0.70 0.76 0.03
Sub Total 1273.87 1383.96 63.95
Net Depreciation 63.95 Note: The assets value indicated in the table are without Consumer Contribution/Grants.
Commission’s analysis and decisions:
The depreciation has been determined by the Commission in
accordance with the provisions of the KERC (Terms and Conditions for
Determination of Tariff) Regulations, 2006 as amended on 1st February,
2012. Considering the opening and closing balances of gross blocks of
fixed assets for FY15 and the depreciation as per annual accounts, the
weighted average rate of depreciation works out to 4.81%.
xl
Further, an amount of Rs.22.48 Crores of depreciation on assets
created out of consumer contribution / grants has been deducted as
per the Accounting Standards (AS) – 12.
Based on the above, the Commission decides to allow the actual
depreciation of Rs.63.95 Crores for FY15.
4.2.7 Capital Expenditure for FY15:
MESCOM has reported a capital expenditure of Rs.261.18 Crores (as per
D17-Rs.274.25 Crores) against the approved capex of Rs.262.33 Cores for
FY15. MESCOM has furnished the actual expenditure incurred during
FY15 against the approved capex in its reply to the Commission’s
preliminary observation as shown in the following table:
TABLE – 4.10
Capital Expenditure of MESCOM for FY15
Amount in Rs. Crores
Sl.
No Particulars
Approved in
FY 15
Actual
Expenditure
For FY 15
1.
Extension & Improvement (Addl. DTCs,
Link-Lines, HT/LT Reconductoring,
providing intermediate poles, HVDS, etc.)
95.00 80.20
2. DTC Metering -
3. R-APDRP Programme 25.00 8.89
4. Replacement of faulty DTCs 20.00 28.82
5. Service Connections 30.00 34.74
6. Rural Electrification (General)
a. RGGVY Programme 20.00 59.62
b. Electrification of Hamlets 2.00 0.28
c. Energization of IP sets (including providing
infrastructure of UA IP sets) 35.00 28.40
d. Kutir Jyothi scheme 0.25 0.19
Sub-Total (a+b+c+d) 57.25 88.49
7 Tribal Sub Plan
a. Electrification of Tribal Colonies 0.60 0.07
b. Energization of IP sets 0.35 0.06
c. Kutir Jyothi scheme 0.03 0.01
Sub-Total 0.98 0.14
8. Special Component Plan
a. Electrification of S.C. Colonies 1.00 0.14
b. Energization of IP sets 1.00 0.27
c. Kutir Jyothi 0.10 0.01
Sub-Total 2.10 0.42
9. Tools & Plants and Computers 2.00 3.71
xli
10. Civil Engineering Works 15.00 5.02
11. 33 KV sub stations & Line works 15.00 10.75
TOTAL 262.33 261.18
Commission’s analysis and decision:
From the above table, the Commission notes that, though MESCOM
has achieved a total capital expenditure almost equal to the
approved amount, it has exceeded its capex in some categories of
works. In the case of RGGVY Programme, MESCOM has achieved a
capex of Rs.59.62 Crores as against an approved amount of Rs.20
Cores and in the case of tools and plants, it has exceeded the capex
from Rs.2 Crores to Rs.3.71 Crores.
Also, in capital expenditure incurred on Replacement of Faulty
transformers by new Transformers MESCOM is indicated a capex of
Rs.28.82 Crores, against the approved capex of Rs.20 Crores. In this
regard, MESCOM shall 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 not fit for
repairs and is to be scrapped only then such transformers can be
replaced by a new transformers and can be booked under capex.
The Commission had sought the details of failure of transformers,
repairs and procurement installation of new transformers for
replacement of failed transformers for FY15 from MESCOM in its
preliminary observations. In reply, MESCOM has stated that, total failed
transformers were 5740 out of which 4650 are repaired and 565 are
scrapped. But, MESCOM has stated that, it has used 1060 new
transformers for replacing failed transformers at a total cost of Rs.9.11
Crores. This amount of Rs.9.11 Crores is to be shown as capex incurred
for Replacement of Faulty transformers by new Transformers. Thus, the
total capex incurred for FY15 would be Rs.252.07 Crores instead of
Rs.261.18 Crores.
The year-wise expenditure incurred by MESCOM against the approved
Capex during the last four years is shown in the following Table:
TABLE – 4.11
Approved Vs Actual capital investment
Amount in Rs. Crores
Particulars FY12 FY13 FY14 FY15
Capital Investment Proposed
& Approved 348.55 249.85 281.44 262.33
Capital Investment actually
incurred 127.4 130.92 193.17 252.07
xlii
Short fall 221.15 118.93 88.27 10.26
% Achievement 36.55% 52.40% 68.64% 96.09%
The overall capital expenditure for FY15 after adjusting the excess
capex towards replacement of failed transformers by new
transformers, is found to be within the capex approved by the
Commission. The Commission directs MESCOM to plan its future capital
expenditure effectively, using the capital expenditure guidelines
issued by the Commission.
The Commission, taking note of the above facts, decides to allow the
actual capital expenditure of Rs.252.07 Crores for FY15.
4.2.8 Prudence check of capital expenditure for FY15:
The prudence check of capex of MESCOM was taken in two parts:
a) Prudence check of execution of the capital works of FY15:
b) Prudence check of material procurement process of FY15:
a) Prudence check of execution of the capital works of FY15:
The Commission has taken up prudence check of the capital
expenditure incurred by MESCOM for the period FY15 by engaging the
services of M/s. Price Waterhouse Coopers Private Limited, (M/s PWC)
as consultant to evaluate the capital expenditure incurred during FY15
in respect of completed and categorized works.
As per the prudence check report the following are the salient
features:
TABLE – 4.12
Gist of Prudence check findings for FY15
Particulars Numbers Amount in
Rs. Crs
Works costing Rs.6 Lakhs and above considered
as samples 120
27.02
Works costing between than Rs.6 Lakhs and Rs.3
Lakhs considered as samples 50
1.96
Works costing below Rs.3 Lakhs considered as
samples 18
0.38
Works not meeting Rs.6 Lakhs and above Nil
xliii
the norms of
prudence
Rs.6 Lakhs and Rs.3 Lakhs Nil
below Rs.3 Lakhs Nil
Total works not meeting the norms of prudence
as stipulated in the guidelines issued by this
Commission
Nil
TABLE – 4.13
Summary of Works having cost overrun
Particulars Within 10% 10-25% Above 25%
Rs.6 Lakhs and above 12 1 -
Rs.6 Lakhs and Rs.3 Lakhs 1 - -
Below Rs.3 Lakhs 1 - -
TABLE – 4.14
Summary of Works having Time overrun
Particulars Within a
month
Between one
and four month
above 4
Months
Rs.6 Lakhs and above 4 11 6
Rs.6 Lakhs and Rs.3 Lakhs 2 4 5
Below Rs.3 Lakhs 2 2 1
The Commission has forwarded the copy of the Report on the Prudence
check to MESCOM.
xliv
b) Prudence check of material procurement process of FY15
The MESCOM has been executing capital works both on turnkey as
well as partial turnkey contracts. In the process, the MESCOM procures
major materials like, distribution transformers, poles and conductor etc.
and issues them to the partial turnkey contractor for carrying out the
labour contract work as per the award. The contractor would also
invest on some of the minor materials associated with the works viz.,
cross arm, bolt & nuts, earthing materials etc., if necessary.
In view of the fact that, a large quantity of major materials are being
procured by the ESCOMs, the Commission had decided to review
material procurement process of major materials as a part of
prudence check carried out, to ensure that, the procurement is carried
out in a cost effective manner without compromising the operational
needs.
Hence, the consultant was directed to look into the procurement
process of the MESCOM, and analyse the process.
The consultant has conducted the material audit and stated that, in
MESCOM, the annual Capital budget is being prepared during the
beginning of the financial year. The capital investment programme
includes turnkey works & departmental execution works. The materials
budget is carved out from the capital budget. 75-80% of the amount
allotted for the works, which are to be taken up departmentally and
on partial turnkey basis is carved out to prepare materials Budget. The
procurement is processed through Tendering as per the Karnataka
Transparency in Public Procurements (KTPP) Act & rules and other
Circulars of both MESCOM and Government of Karnataka (GOK).
Tenders are floated at intervals, duly observing the store stock.
xlv
The material stock statements are collected from all divisional stores
and monitored at corporate office on weekly basis. Usually materials
required for 3 months consumption are kept as buffer stock in each
divisional store. As the jurisdictional area of divisions are different,
accordingly the quantity of work also varies. Hence, in some divisions,
consumption of materials is more. Materials are diverted to needy
divisions from other divisions, where stock is more in view of providing
matching materials for speedy completion of planned works.
MESCOM has maintained on an average 22% of inventory for poles at
the end of FY15 compared to opening stock of average 8%. In
distribution transformers, on an average 13% of inventory was
maintained for transformers at the end of FY15 compared to opening
stock at average 2% of total requirement. Similarly for conductors, on
an average 21% of inventory was maintained for conductors at the
end of FY15 compared to opening stock of average 8% of total
requirement. For insulators also, on an average 28% of inventory was
maintained at the end of FY15 compared to opening stock of average
13% of total requirement.
The Commission considers that overall material procurement by
MESCOM is prudent.
4.2.9 Prudence check of capital expenditure for FY13 &FY14:
The Commission had disallowed interest and depreciation charges on
the capex of six works of MESCOM and one work of KPTCL prudence
attributable to MESCOM for not constructing down streamlines in the
tariff order dated 2nd March, 2015.
MESCOM has submitted to the Commission adequate data to justify
that the works meet the norms of prudence.
xlvi
The Commission after examining the justification given by MESCOM
decides to consider the works as meeting the norms of prudence and
decides that, the disallowance need not be continued.
4.2.10 Interest and Finance Charges:
a) Interest on loan:
MESCOM’s Submission:
MESCOM in its application has claimed an amount of Rs.63.44
Crores towards interest on loans.
Considering the opening balance of loans, new borrowings and
the repayment of loans during FY15, the weighted average rate
of interest on the average loan amount works out to 11.47%.
MESCOM has requested the Commission to allow an amount of
Rs.50.29 Crores for FY15 towards interest on loans.
Commission’s analysis and decisions:
The Commission has noted the status of opening and closing balances
of loans as per the audited accounts and format D9 of the filings as
shown below:
TABLE – 4.15
Allowable Interest on Loans – FY15
Amount in Rs. Crores
Particulars FY15
Opening Balance Secured Loans 396.80
Opening Balance Un-secured Loans 20.44
Total opening balance of loans 417.24
Less Short term loans/ Over draft 0.00
Less Interest accrued & dues 0.00
Total Long term secured & unsecured loans 417.24
Add: New Loans 158.22
xlvii
Less: Repayments 115.43
Total loan at the end of the year 460.03
Average Loan 438.63
Allowable Interest on Capital Loans 50.29
Considering the average loan of Rs.438.36 Crores and an amount of
Rs.50.29 Crores incurred towards interest on long term loans, the
weighted average of interest works out to 11.47%. The actual
weighted average rate of interest is comparable with the prevailing
rate of interest for long term loans.
The Commission therefore decides to allow an amount of Rs.50.29
Crores towards interest on loans for FY15.
4.2.11 Interest on Working Capital:
MESCOM’s Submission:
MESCOM in its application has stated that it has borrowed
amounts on short term loans and overdrafts during the year to
meet its day to day expenditure during FY15. As per the audited
accounts, MESCOM has incurred an amount of Rs.25.08 Crores
towards interest on short term loans / overdrafts during FY15.
However, MESCOM in its application under format D9 has
claimed an amount of Rs.34.61 Crores an interest on working
capital.
Commission’s analysis and decisions:
As per the audited accounts MESCOM has incurred an interest of
Rs.25.08 Crores on short term borrowings during FY15.
xlviii
The present interest rates by commercial banks and financial
institutions are based on the base rate of interest declared by RBI from
time to time. Hence, the Commission would consider base rate plus
certain basis points depending upon the tenure of the loan. As per the
MESCOM’s replies to the Commission’s preliminary observations, it is
stated that short term loans are availed at an interest rate of 10.90%
and overdraft at 11.25% during FY15. Considering the base rate of
interest of 9.30% and a spread of 250 basis points and noting the
downward trend in the rate of interest, the Commission decides to
allow short term loans at a normative interest rate of 11.75% for FY15.
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 as amended on 1st February, 2012, the Commission
has computed the allowable interest on working capital for FY15 as
follows:
TABLE – 4.16
Allowable Interest on Working Capital for FY15
Amount in Rs. Crores
Particulars FY15
One-twelfth of the amount of O&M Expenses 25.26
Opening GFA 1871.52
Stores, materials and supplies 1% of Opening balance of GFA 18.72
One-sixth of the Revenue 365.22
Total Working Capital 409.20
Rate of Interest (% p.a.) 11.75
Normative Interest on Working Capital 48.08
Actual interest on WC as per audited accounts for FY15 25.08
Allowable Interest on Working Capital 36.58
The Commission therefore decides to allow an amount of Rs.36.58
Crores towards interest on working capital for FY15.
4.2.12 Interest on Consumer Deposits:
MESCOM’s Submission:
MESCOM in its application has claimed an amount of Rs.33.96
Crores towards payment of interest on consumers’ security
deposits for FY15.
xlix
Commission’s analysis and decisions:
The Commission notes that, the interest on consumer security deposits
amounting to Rs.33.96 Crores claimed by MESCOM works out to a
weighted average rate of interest of 8.92%. As per the KERC (Interest
on Security Deposit) Regulations, 2005 the interest on consumer
deposits is to be allowed as per the bank rate prevailing on the 1st of
April of the relevant year. The bank rate as on 1st April, 2013 was 9%.
The weighted average rate of interest claimed by MESCOM is within
the applicable bank rate.
Thus, the Commission decides to allow an amount of Rs.33.96 Crores
towards interest on consumer security deposits for FY15.
4.2.13 Other Interest and Finance charges:
MESCOM has claimed an amount of Rs.2.19 Crores towards other
interest and finance charges for FY15, which includes charges payable
to banks / financial institutions and guarantee commission payable to
GoK. However, the Commission notes that the claims as per audited
accounts is Rs.2.20 Crores and hence decides to allow the same for
FY15.
4.2.14 Capitalization of Interest and other expenses:
MESCOM in its filing and as per the audited accounts for FY15 has
capitalized interest of Rs.2.30 Crores on funds used during construction
and Rs.0.9968 Crores towards A&G expenses during FY15. The
Commission has considered an amount of Rs. 3.39 Crores towards
capitalization of Interest and other expenses for computation of APR
for FY15.
Thus the allowable interest and finance charges for FY15 are as follows:
TABLE – 4.17
l
Allowable Interest and Finance Charges
Amount in Rs. Crores
Sl.
No. Particulars FY15
1. Interest on Loan capital 50.29
2. Interest on working capital 36.58
3. Interest on consumer deposits 33.96
4. Other interest and finance charges 2.20
5. Less Interest and other expenses capitalized 3.39
6. Total interest and finance charges 119.64
4.2.15 Other Debits:
MESCOM’s Submission:
MESCOM, in its application has claimed credit balance of Rs.6.46
Crores towards other debits for FY15.
Commission’s analysis and decisions:
The Commission notes that as per the audited accounts, the allowable
other debits excluding the provision for bad and doubtful debts for
FY15 are as detailed below:
TABLE – 4.18
Allowable Other Debits
Amount in Rs. Crores
Sl
No Particulars FY15
1 Small and Low value items written off 0.08
2 Losses relating to fixed assets 0.82
3 Assets decommissioning cost 0.09
4 Miscellaneous losses and write offs 1.11
5 Bad debts written off 0.87
Total 2.97
Thus, the Commission decides to consider an amount of Rs.2.97 Crores
as other debits for FY15.
4.2.16 Net Prior Period Charges:
MESCOM’s Submission:
li
MESCOM has claimed credit balance of Rs.28.62 Crores towards
Net Prior Period income/expenses and losses for FY15.
Commission’s analysis and decisions:
As per the Audited Accounts for FY15, the prior period debit is Rs.0.73
Crores on account of employee costs, A&G expenses and under
provided depreciation of earlier years. Further the prior period credit
of Rs.5.68 Crores is on account of excess depreciation and other
expenses provided without considering the tariff subsidy relating to
prior period.
Thus, the Commission decides to allow a net prior period credit of
Rs.4.95 Crores for FY15.
4.2.17 Return on Equity:
MESCOM’s Submission:
MESCOM in its application has claimed Return on Equity of
Rs.66.23 Crores for FY15.
Commission’s analysis and decisions:
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 as amended on 1st February, 2012, the Commission
has computed the allowable Return on Equity at 15.5% on equity plus
reserves and surplus as at the beginning of the year and also factoring
recapitalization of security deposit of Rs.26.00 Crores in compliance
with the Orders of the Hon’ble ATE in appeal No.46/2014 besides
allowing taxes as per actuals. The allowable RoE for FY15 is determined
as follows:
TABLE – 4.19
Allowable Return on Equity
Amount in Rs. Crores
lii
Particulars FY15
Paid Up Share Capital 216.07
Share deposit 14.00
Reserves and Surplus as on 31.03.2015 71.64
Recapitalization of Consumers’ security
deposit (26.00)
Total Equity 275.71
Allowable RoE @ 15.50% 42.74
Thus, the Commission decides to allow an amount of Rs.42.74 Crores
as Return on Equity for FY15.
4.2.18 Income tax :
As per the audited accounts, MESCOM has factored Rs.3.43 Crores towards
payment of Income Tax for FY15. Further, as per the profit and loss
statement, credit entitlement of MAT is indicated as Rs.3.43 Crores. Thus, the
allowable taxes to be factored in ARR is nullified. Hence, the Commission
decides not to allow any provision towards Income Tax separately for FY15.
4.2.19 Other Income:
MESCOM’s Submission:
MESCOM in its application has claimed an amount of Rs.38.63 Crores
as Other Income for FY15. This amount includes income from interest on
fixed deposits, profits on sale of scrap, miscellaneous recoveries and
rent from staff quarters.
Commission’s analysis and decisions:
As per the audited accounts, the other income is Rs.140.17 Crores for
FY15. As decided in the earlier Tariff Orders to encourage and bring in
financial discipline in timely payment of monthly power purchase bills,
the Commission decides to allow10% of the total incentive amounting
to Rs.1.35 Crores on account of timely payment of power purchase
bills, to be retained by MESCOM for FY15. Thus, after deducting the
incentive amount of Rs.1.35 Crores, the Commission decides to allow
an amount of Rs.138.82 Crores as other income for FY15.
liii
4.2.20 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.0.50 Crore per year
towards consumer relations / consumer education. MESCOM in its filing has
reported that an amount of Rs.0.05 Crores has been incurred towards
Consumer Relations / Consumer Education for FY15. The Commission
decides to allow the same.
4.3 Abstract of Approved ARR for FY15:
As per the above item-wise decisions of the Commission, the
consolidated Statement of revised ARR for FY15 is as follows:
liv
TABLE – 4.20
Approved revised ARR for FY15 as per APR
Amount in Rs. Crores
Sl.No. Particulars As per APR
1 Revenue at existing tariff in Rs Crs
2 Revenue from tariff and Misc. Charges
1765.42
3 Revenue Subsidy
425.93
Total Existing Revenue 2191.35
Expenditure in
4 Power Purchase Cost
1467.63
5 Transmission charges of KPTCL
184.41
6 SLDC Charges 6.10
Power Purchase Cost including cost of
transmission 1658.14
7 Employee Cost
8 Repairs & Maintenance
9 Admin & General Expenses
Total O&M Expenses 303.12
10 Depreciation 63.95
Interest & Finance charges
11 Interest on Loans 50.29
12 Interest on Working capital
36.58
13 Interest on belated payment on PP Cost
0
14 Interest on consumer deposits 33.96
15 Other Interest & Finance charges
2.20
16 Less interest capitalised 3.39
17 Total Interest & Finance charges 119.64
18 Other Debits
2.97
19 Net Prior Period Debit/Credit
-4.95
20 RoE
42.74
21 Taxation/MAT Credit
0
22
Funds towards Consumer
Relations/Consumer Education 0.05
23 Other Income
138.82
Net ARR
2046.83
lv
4.3.1 Gap in Revenue for FY15:
As against an approved ARR of Rs.2312.46 Crores, the Commission,
after the Annual Performance Review of MESCOM, decides to allow a
revised ARR of Rs.2046.83 Crores for FY15. Considering the revenue of
Rs.2191.35 Crores, a surplus of Rs.144.52 Crores is determined for the
year FY15.
The Commission decides to carry forward the surplus of Rs.144.52
Crores of FY15 to the proposed ARR for FY17 as discussed in the
subsequent Chapter of this Order.
lvi
CHAPTER – 5
ANNUAL REVENUE REQUIREMENT FOR FY17-19
5.0 Annual Revenue Requirement (ARR) for FY17-FY19 -MESCOM’s Filing:
MESCOM in its application dated 15th December, 2015, has sought
approval of ARR for FY17-19. The summary of the proposed ARR for
FY17-19 is as follows:
TABLE – 5.1
Proposed ARR for FY17-19
Amount in Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
1 Energy @ Gen Bus (With MSEZ) in MUs 5589.95 5904.27 6236.49
2 Transmission Losses in % 3.80% 3.80% 3.80%
3 Energy @ Interface in MU 5377.54 5679.91 5999.51
4 Distribution Losses in % 11.15% 11.05% 10.95%
Sales in MU
5 Sales to other than IP & BJ/KJ 3479.42 3675.38 3882.55
6 Sales to IP & BJ/KJ 1298.52 1376.90 1460.01
7 Total Sales 4777.94 5052.28 5342.56
Revenue at existing tariff in Rs Crs
8 Revenue from tariff and Misc Charges 2054.00 2166.95 2286.45
10 Tariff Subsidy 553.52 586.91 622.32
11 Total Existing Revenue 2607.52 2753.86 2908.77
Expenditure in Rs Crs
12 Power Purchase Cost 1910.41 2376.29 2530.13
13 Transmission charges of KPTCL 233.90 261.93 252.52
14 SLDC Charges 2.77 2.77 2.77
15
Power Purchase Cost including cost of
transmission 2147.08 2640.99 2785.42
16 Employee Cost 462.60 507.03 553.40
17 Repairs & Maintenance 44.47 50.16 56.58
18 Admin & General Expenses 75.48 86.61 102.20
19 Total O&M Expenses 582.55 643.80 712.18
20 Depreciation 76.53 85.24 94.94
Interest & Finance charges
21 Interest on Loans 90.61 98.26 103.62
22 Interest on Working capital 58.57 62.24 66.17
23 Interest on belated payment on PP Cost 0.00 0.00 0.00
24 Interest on consumer deposits 49.75 55.70 62.02
25 Other Interest & Finance charges 2.19 2.19 2.19
26 Less interest & other expenses capitalised 2.39 2.39 2.39
27 Total Interest & Finance charges 198.73 216.00 231.61
28 Other Debits 6.46 6.46 6.46
lvii
29 Net Prior Period Debit/Credit -4.95 -4.95 -4.95
30 Return on Equity 87.31 100.84 116.47
31
Funds towards Consumer
Relations/Consumer Education 0.50 0.50 0.50
32
Other Income (Including income from
MSEZ) 109.16 109.16 109.16
33 ARR 2985.05 3579.72 3833.47
34 Deficit -377.53 -825.86 -924.70
35 Surplus/Deficit for FY15 carried forward -13.22
36 Regulatory asset -92.25
37 Net ARR 3090.52 3579.72 3833.47
MESCOM has requested the Commission to approve the Annual
Revenue Requirement of Rs.3090.52 Crores for FY17, Rs.3579.72 Crores
for FY18 and Rs.3833.47 Crores for FY19. Further, MESCOM has
proposed increase in retail supply tariff by 102 paise per unit in respect
of all the categories of consumers including BJ/KJ and IP set consumers
for FY17, in order to bridge the gap in revenue of Rs.483 Crores.
5.1 Annual Performance Review for FY15& FY16:
As discussed in the preceding chapter of this Order, the Commission
has carried out the Annual Performance Review for FY15 based on the
audited accounts furnished by MESCOM. Accordingly, a surplus of
Rs.144.52 Crores of FY15, is required to be carried forward in to the ARR
of FY17.
As regards APR for FY16, the current financial year (i.e. FY16) is yet to be
completed. Hence, the Commission decides to take up the APR of
FY16 during the revision of ARR / Retail Tariff for FY18.
5.2 Annual Revenue Requirement for FY17-19:
5.2.1 Capital Investments for FY17-19:
In the application for approval of ARR for FY17-19, the MESCOM has
proposed capex Rs.320.40 Crores, Rs.325.40 Crores and Rs.330.40
Crores or the 4th control period, i.e., FY17, FY18 and FY19 respectively.
Some of the important works proposed for the control period are as
follows:
lviii
a) System Augmentation & Strengthening (including HVDS);
b) DTC metering;
c) Replacement of MNR/DC & Electromechanical meters by Static
meters;
d) Replacement of Faulty distribution transformers;
e) Energisation of IP sets (Providing Infrastructure to regularized UIP
sets);
f) Service connection, Rural Electrification under General/SCSP/TSP
Plan;
g) Civil Engineering Works;
h) 33 KV Sub Station and Line Works;
The details of capex under various heads proposed for FY17 to FY19 are
shown in the following Table:
TABLE – 5.2
Proposed capital investment program by MESCOM for FY17 to FY19
Amount in Rs.Crores
Sl
No Particulars FY-17 FY-18 FY-19
1
Extension & Improvement (Addl. DTCs, Link-Lines, HT/LT
Reconductoring, providing intermediate poles, HVDS,
etc.)
100 100 100
2 DTC Metering 0.25 0.25 0.25
3
Replacement of MNR / DC & Electromagnetic meters
by Static meters and providing SMC meter protection
box wherever required.
5 5 5
4 Nirantara Jyothi Yojana - - -
5 R-APDRP Programme - - -
6 Replacement of faulty DTCs 35 40 45
7 Service Connections 40 40 40
8 Rural Electrification (General)
a. RGGVY (DDG) Programme - - -
b. Electrification of Hamlets 2 2 2
c. Energization of IP sets (including providing
infrastructure of UA IP sets) 75 75 75
d. Kutir Jyothi 0.25 0.25 0.25
9 Tribal Sub Plan
a. Electrification of Tribal Colonies 1.5 1.5 1.5
b. Energization of IP Sets 0.75 0.75 0.75
c. Kutir Jyothi 0.05 0.05 0.05
10 Special Component Plan
a. Electrification of S.C. Colonies 1 1 1
b. Energization of IP sets 1 1 1
c. Kutir Jyothi 0.1 0.1 0.1
11 Tools & Plants and Computers 5 5 5
12 Civil Engineering Works 16 16 16
13 33 kV Sub stations & Line works 37.5 37.5 37.5
lix
GRAND TOTAL: 320.40 325.40 330.40
Commission’s analysis and decision:
The Commission had sought necessary justification for the proposed
capex in respect of Extension & Improvement, Link-Lines, HT/LT
Reconductoring, providing intermediate poles, HVDS, etc., at Rs.100
Crores for all the three years and the MESCOM has justified its
projections while furnishing the replies to the preliminary observations.
By submitting the details of capex for FY13, FY14, FY15 and upto
November, 2015, the MESCOM has stated that, these works are of
continuous nature and would remain at same level throughout the
control period. The details furnished are as shown below:
TABLE – 5.3
Physical Progress of E&I works for FY13 onwards
Sl.
No. Particulars 2012-13 2013-14 2014-15
2015-16
(upto
Nov-15)
1 No. of DTC's added 1145 1057 1304 742
2 HT lines in RKms 673.44 528.58 716.99 385.07
3 HT lines reconductoring in
RKms 468.97 191.19 179.07 150.01
4 LT line 139.94 123.08 129.84 84.38
5 LT line reconductoring in
RKms 676.01 607.88 780.55 423.67
It can be observed from the above table that the physical progress in
the E&I works are more or less in the same range and the claim of
MESCOM is justified.
Further, the details of Spill over & new works proposed for upcoming
years are stated as follows:
Sl.
No. Particulars
Physical Amount (Rs. in Lakhs)
Spill
over
New
works Total
Spill
over
New
works Total
a Addl. Transformers: 25 KVA 150 450 600 216.00 648.00 864.00
b Addl. Transformers : 63 KVA 175 525 700 339.50 1018.50 1358.00
c
Conversion of 11kv lines into
UG cable in Shivamogga &
Mangaluru Corporation limits
6.875 20.625 27.5 266.25 798.75 1065.00
lx
d New 11kv feeders &11kv Link-
Lines 87.5 262.5 350 218.75 656.25 875.00
e 33kV Re-conductoring 13 39 52 158.46 475.37 633.83
f HT Re-conductoring 62.5 187.5 250 75.00 225.00 300.00
g LT Re-conductoring 162.5 487.5 650 253.50 760.50 1014.00
h HVDS 65 185 250 375.00 1125.00 1500.00
i Other works (Aerial fuse
board, 127.04 381.11 508.14
j Miscellaneous works 500.00 1500.00 2000.00
2529.49 7588.48 10117.97
In case of Replacement of MNR / DC & Electromagnetic meters by
Static meters and providing SMC meter protection box wherever
required, the MESCOM has indicated Rs.5 Crores each year, up to FY21
and has stated that, it is replacing the MNR meters for an average of
30, 000 meters every year duly furnishing the details of faulty meters
replaced during last 3 years are as follows:
Sl.
No Year MNR meters replaced
1 2012-13 38599
2 2013-14 33181
3 2014-15 30118
4 2015-16 (Upto Nov-15) 31425
In respect of energization of Un-authorised IP sets by creating
infrastructure, the MESCOM has justified its proposal of capex spread of
Rs.75 Crores and furnished the details of new IP sets serviced, UIP sets
regularized and Infrastructure provided to regularized IP sets during last
3 years as follows:
Sl.
No Year
New IP set
serviced
UIP
regularized
Infrastructure
provided
1 2012-13 7965 8137 7645
2 2013-14 9490 - 1761
3 2014-15 2668 14897 2421
4 2015-16 (Upto Nov-
15) 8825 639 809
The MESCOM has stated that, it has taken action to provide
Infrastructure to 7194 number of un-authorised IP sets regularized, as
per the GoK order dated 11.03.2011and a Budget provision of Rs.112.00
Crores was made during 2015-16 and works are under progress. The
scheduled date of completion is October, 2016.
lxi
Also, as per GoK order dated: 14.07.2014, 14134 Nos. of regularized UIP
sets are required to be provided with Infrastructure. For speedy
execution of Infrastructure to the remaining UIP sets, the MESCOM has
proposed to carry out the works on total turnkey basis (Rate Contract)
which may be executed during ensuing MYT period. Accordingly, a
yearly Budget provision of Rs.45 Crores has been provided. Further, an
annual Budget provision of Rs.30 Crores has been made for
energization of new IP sets under general and Ganga Kalyana
schemes. Hence the total Budget provision works out for Rs.75 Crores
per year.
In respect of replacement of faulty transformers, MESCOM has shown a
capex of Rs.35 Crores and an additional Rs.5 Crores every year
thereon. MESCOM 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,
then it can be replaced by a new transformer which has to be
accounted under capex. Hence, the proposed capex for replacement
of failed transformer, by new transformers, should be limited to Rs.5
Crores each year instead of proposed amount of Rs.35 Crores, Rs.40
Crores and Rs.45 Crores for FY17, FY18 and FY19 respectively.
In case of NJY, R-APDRP Programme and RGGVY (DDG) Programme,
the MESCOM has not shown any capex from FY17 onwards. It has not
stated as to whether, it is going to complete the entire programme
within FY16 and does not require capex for the future years.
While projecting the capital expenditure, the MESCOM should make
use of the “Capital expenditure guidelines for ESCOMs” issued by the
Commission and should identify the high loss masking feeders, high
loss subdivision, division and circles and prioritize its capex specifically,
to reduce losses and improve reliability of distribution system. The
length of some of the 11kV feeders is stated to be of more than 100 kms
(as per the information furnished to on justify the capex for
reconductoring works). The feeder bifurcation and load segregation
lxii
works have to be taken up on priority basis by MESCOM to reduce
losses and interruptions as well as to improve voltage regulation and
reliability.
The optimal distribution system loss should 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. MESCOM should
formulate plans to bring down the distribution system losses below 10%
by the end of plan period of FY21.
The MESCOM should prepare a detailed perspective plan by
conducting 11kV feeder-wise and DTC wise load flow studies to
ascertain the present and projected loads on each of the feeders and
to arrive at, least cost, techno economically feasible improvement
methods and for reducing the current level of distribution system
energy losses to bring down the present level of losses to less than 10%.
The MESCOM should make efforts to work out the Techo-economic
analysis for the works considered in system strengthening, improvement
and other works for the period from FY-17 to FY-21, so that, the
company would ascertain whether, its proposal of reducing the losses
is supported by the capex proposals.
The MESCOM 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.
d) Drawing express feeders to bifurcate the loads.
e) Establishing new 33kV substations and proposing for
Establishment of new transmission voltage substations by KPTCL.
f) Installing additional DTCs and shifting DTCs to load centers to
reduce the LT line lengths.
lxiii
In light of the above discussion and keeping in view, the capex
achievement during FY15, the Commission decides to approve the
capex of MESCOM at Rs.288.9 Crores, Rs.289.4 Crores & Rs.289.9
Crores for FY17, FY18 and FY19 respectively after deducting excess
capex proposed for replacement of failed transformers by new ones,
subject to prudence check and directs the MESCOM to approach the
Commission for in principle approval, in case, it requires any additional
capex during the financial year.
5.2.2 Sales Forecast for FY17-19:
I. Category wise estimation of number of installations and sales
by MESCOM for the control period-FY17 to FY19:
1) MESCOM, in its Tariff application, has stated that for the control period
FY17 to FY19, the load forecast has been done based on mixed CAGR
method. It is stated that, the number of installations and energy sales
projections in respect of LT-2, LT-3, LT-4 (other than LT-4a), LT-5, LT-6, LT-7
and HT categories, have been made on the basis of CAGR for the
period from FY09 to FY15 and FY12 to FY15 and for LT-1 and LT-4a
categories, it has been estimated on the basis of specific consumption.
Further, the MESCOM has submitted the forecast prepared by M/s.
PRDCL along with EPS projections which are reproduced below:
PRDC PROJECTIONS
Year Base case Scenario-2 Scenario-3 EPS MESCOM’s
projections.
FY 13 4324.80 4341.41 4429.18 3769.05 3771.88 (*)
FY 14 4613.80 4647.61 4824.26 4116.21 4037.55 (*)
FY 15 4930.64 5006.54 5161.71 4479.94 4146.18 (*)
FY 16 5329.27 5454.67 5589.29 4835.78 4450.22
FY 17 5735.09 5900.57 6025.25 5214.34 4777.94
FY 18 6170.40 6385.41 6498.78 5577.60 5052.28
FY 19 6642.07 6915.06 7014.44 5948.51 5342.56
FY 20 7151.16 7489.55 7575.59 6348.22 5649.79
FY 21 7702.20 8115.95 8185.56 6781.61 5975.05
(*) actuals
The MESCOM has stated that, 43% of its sales have less impact on Gross
Domestic Product of the State and therefore, forecast based on
lxiv
econometrics is of least significance. Hence, MESCOM has stated that
it has prepared the forecast based on CAGR method.
2. The preliminary observations of the Commission on the sales forecast,
for the control period and the replies furnished by the MESCOM are
discussed in the following paragraphs:
i) LT (1) – BJ/KJ category:
The commission had suggested that, the MESCOM has to consider the
midyear figures for calculating specific consumption for FY15 and
multiply the same by midyear number of installations for arriving at
sales estimate or consider the specific consumption based on end year
figures and multiply the same by end year number of installation for
estimating the sales for the control period.
The MESCOM in their replies has stated that it has followed the strategy
adopted in Tariff Order-2015.
The Commission’s approach regarding sales to BJ/KJ, is discussed later
in this chapter.
The Commission’s observation on the sales projections in respect of
other categories are discussed below:
ii) Other categories excluding IP Sets:
a) MESCOM had not proposed any growth in the number of
installations in LT7- temporary power supply and HT3 (a) and (b)
categories. The Commission had suggested that, MESCOM may
revise the estimates for the number of installation in these
categories considering the previous years’ growth rate.
MESCOM has replied that it has retained the same number of
installations for LT-7 and HT-3 categories at the same level for the
lxv
control period, as energy sales to these categories are either very
high or comparatively low in some of the years.
The Commission notes that the growth in installations is not
dependent on energy sales.
b) The Commission had directed MESCOM to analyze the reasons
for very high growth rate in FY15 in respect of HT1 installations at
12.9% compared to normal growth in the range of 7% to 8%.
The MESCOM has stated that for estimation of number of
installations, it has adopted 7.09% growth rate and has not
furnished any reasons for high growth rate in FY15.
c) The Commission had suggested that the MESCOM may revise
the estimates for the number of installations for HT4 category,
considering the negative growth rate in the previous year and
the negative CAGR for the period 2009-10 to 2013-15 and 2010-
12 to 2013-15. The MESCOM in their replies has stated that the
growth rate during the period FY10- FY12 has been considered.
The Commission notes that by not considering the data of FY13
to FY15, the recent trend in the growth rate is not accounted.
d) Regarding the sales growth rate considered for LT5, the MESCOM
has replied that the same is reasonable.
e) The MESCOM had not proposed any growth in sales to LT7
temporary category and therefore it was suggested to revise the
estimates. The MESCOM has stated that energy sale to this
category is either very high or comparatively low in some of the
years. The Commission notes that the sales to this category do not
follow a specific trend.
f) Regarding the lower sales growth rate considered for HT1 and
higher for HT2 (a) with reference previous year growth rate,
lxvi
MESCOM has replied that it has adopted the CAGR for the period
FY-12 to FY-15.
g) Regarding higher sales growth rate considered for HT-4 category,
MESCOM has stated that it has adopted CAGR for the period FY13
to FY15.
h) The Commission had sought clarification as to whether MSEZ has
requested for supply of power for the control period and if so the
quantum of power requested for each of the years and the costs
thereon.
MESCOM in their replies has stated that based on sales approved
for FY-16, it has retained the FY-16 sales for the control period also.
The sales approved for SEZ for the control period are separately dealt
by the Commission in the tariff order of Mangalore SEZ.
II. The Commission’s approach for estimating the number of
installations and sales for Control Period FY17-19:
The Commission has issued 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 estimates as filed by
ESCOMs indicate that, the 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 stakeholders have been heard in the matter. After considering the
views expressed by the stakeholders, the Commission has decided to
adopt the methodology indicated in the following paragraphs which is
different from the CEA’s approach for the reasons stated below:
lxvii
a. The State of Karnataka is under peak and energy shortages and the
supply of electricity is determined by the availability of generation,
which is at present restricted. The last three years data of energy at
the generation bus is shown below, justifies the above stand:
Year
18th EPS
MU
Actual supplied
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.
In view of the above, the Commission has considered the business as
usual scenario and the methodology adopted by the Commission to
estimate the number of installations and sales to categories other than
BJ/KJ and IP sets as discussed below:
1) No. of Installations:
While estimating the number of installations for the control period
(excluding BJ/KJ and IP), the following approach is adopted:
a. The base year number of installations for FY16 is modified duly
validating the revised estimate furnished by the MESCOM in the
current filing and considering the data furnished upto 30.11.2015.
Accordingly, the base year estimates have been revised, which has
an impact on the estimates on the number of installations and sales
for the control period.
lxviii
b. Wherever the number of installations estimated by the MESCOM, 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 the MESCOM are retained.
c. Wherever the estimated number of installations as per the MESCOM
is lower than the estimates based on the CAGRs for the period FY10
– FY15 and for the period FY12 - FY15, the estimates based on the
lower of the CAGRs for the period FY10 – FY15 and for the period
FY12 - FY15 are considered.
d. Wherever the number of installations estimated by the MESCOM is
higher than the estimates based on the CAGRs for the period FY10
– FY15 and for the period FY12 - FY15, the estimate based on the
higher of the CAGRs for the period FY10 – FY15 and for the period
FY12 - FY15 are considered.
e. For LT 2b, LT-7, HT-2(c), HT-3, HT-4 and HT-5 categories, the estimates
of MESCOM 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
1813858 1798246 1891226 1869285 1973652 1943226
2) Energy Sales:
i) For categories other than BJ/KJ and IP sets, generally the sales
are estimated considering the following approach:
lxix
a. The base year sales for FY16, as estimated by the MESCOM are
validated duly considering the actual sales upto November,
2015 and modified suitably.
b. Wherever the sales estimated by the MESCOM 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 the MESCOM are retained.
c. Wherever the sales estimated by the MESCOM for the control
period is lower than the estimates based on the CAGRs for the
period FY10 – FY15 and for the period FY12- FY15, the estimates
based on the lower of the CAGRs for the period FY10 – FY15 and
for the period FY12 - FY15 are considered.
d. Wherever sales estimated by the MESCOM is higher than the
estimates based on the CAGRs for the period FY10 – FY15 and
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-7, HT-2(c), HT-3 and HT-5, the proposal of the MESCOM is
retained as there is no specific growth pattern in these
categories.
f. For HT-2a, HT-2(b) and HT-4, based on the information furnished
by the MESCOM regarding the number of installations shifted to
HT-2(c) category and the energy sold under open access, the
Commission has worked out the sales factoring the impact of
the above. The HT-2c sales and open access sales are added to
HT-2a, HT-2(b) and HT-4 correspondingly and overall growth rate
is arrived at for the period FY13 to FY15 for estimating the sales
for FY-16 to FY-19, including open access sales. The overall sales
are then apportioned between HT-2a, HT-2(b) and HT-4 based
on contribution of these categories in FY-15, to overall sales.
lxx
Based on the above approach, the sales (excluding BJ/KJ and IP sets)
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
3355.67 3368.88 3551.63 3572.38 3758.78 3787.72
ii) Sales to BJ/KJ :
The break-up of sales to BJ/KJ installations as filed by the MESCOM for
FY-15 is as indicated below:
Particulars No. of
Installations
Consumption in
MU
Specific consumption per
installation per month
(kWh)
Installations consuming
less than or equal to18
units
141293 13.29 7.84
Installations consuming
more than 18 units and
billed under LT2(a)
54050 29.00 44.71
Considering the above specific consumption, the approved sale, for
the in respect of BJ/KJ, is as indicated below:
MU
Particulars FY17 FY18 FY19
Installations consuming less than or
equal to18 units
14.59 15.28 16.01
Installations consuming more than 18
units and billed under LT2(a)
30.79 31.72 32.68
iii) IP set sales projections for FY 17-19:
lxxi
In its Tariff Order dated 6th May, 2013, the Commission had approved
the specific consumption of IP sets as 4,597 units/installation/annum for
the entire control period of the FY14 to the FY16 by considering the
existence of unauthorized IP sets in the distribution system. The
MESCOM has reported the total sales of 1,086.18 MU against 2,60,399
numbers of IP set installations serviced, which translates into a specific
consumption of 4,280 units / installation / annum for the FY15. It is
observed that the actual specific consumption reported by the
MESCOM for the FY15 is less than the approved figure of 4,597 units /
installation / annum by 317 units /installation/annum. The approved
sales quantity for the FY15 was 1,134.10 MU. This indicates a decrease in
sales to an extent of 47.92 MU to that of approved quantum for the
FY15.
It is noted that the MESCOM has achieved a specific consumption of
4,280 units/installation/annum on the basis of consumption reported for
the FY15. In view of this, the Commission decides to continue the
specific consumption of 4,280 units / installation / annum, achieved by
the MESCOM during the FY15, for projection of IP set consumption for
the FY17 to the FY19 also.
It is noted that the MESCOM has projected the number of IP set
installations as 2,92,860, 3,10,578 and 3,29,368 for FY17, FY18 and FY19
respectively in the present Tariff filing. In view of this, the Commission
has considered the number of IP sets furnished by the MESCOM for the
FY17 to the FY19 without any modifications. Hence, based on the
estimated number of installations for FY17 to FY19, the midyear number
of installations is determined and the sales to IP set consumers are
indicated as below: i)
ii)
Particulars As filed by the MESCOM
As approved by the
Commission
FY16 FY17 FY18 FY19 FY17 FY18 FY19
No of installations 2,76,153 2,92,860 3,10,578 3,29,368 2,92,860 3,10,578 3,29,368
Mid-Year no. of
installations
2,84,507 3,01,719 3,19,973 2,84,507 3,01,719 3,19,973
Specific consumption in 4,513 4,511 4,514 4,280 4,280 4,280
lxxii
units/installation/annum
Sales in MU 1,284.26 1,361.96 1,444.36 1,217.69 1,291.36 1,369.48
Accordingly, the Commission approves 1,217.69 MU, 1,291.36 MU and
1,369.48 MU as energy sales to IP sets as against the MESCOM’s sales
projections of 1,284.26 MU, 1,361.96 MU and 1,444.36 respectively for
FY17, FY18 and FY19. Further, any variation in sales in the FY17 would be
trued up during the Annual Performance Review, for the FY17, based on
only the energy meter readings in respect of individual IP set
installations.
The above approved IP set consumption is with the assumption that the
Government of Karnataka would release full subsidy to cover the
approved quantum. However, if there is any variation in the subsidy
allocation by the GoK, the quantum of power to be supplied to IP sets
of 10 HP and below shall be proportionately regulated. The payment of
subsidy by the GoK on supply to IP sets is detailed in Chapter 6 of this
Order.
Hence, the Commission reiterates that the MESCOM shall consider the
actual readings of IP set installations, wherever metering has been
completed and shall report the actual consumption of IP sets on the
basis of metered data from individual IP set installations every month to
the Commission as this would be an accurate measure of IP set
consumption.
Further, the MESCOM is directed to take up enumeration of IP sets in its
jurisdiction in order to identify defunct/dried up wells and un-
authorized IP sets in the field and take necessary action to arrive at
correct number of IP sets on the basis of enumeration report. The
compliance regarding the same shall be submitted to the Commission
within six months from the date of issue of this order.
lxxiii
Based on the above discussions, the category-wise approved number
of installations for the control period vis-à-vis the estimates made by
the MESCOM is indicated below:
TABLE – 5.4
Category wise approved number of installations
Category
FY-17 FY-18 FY-19
MESCOM’s
estimate
Approved MESCOM’s
estimate
Approved MESCOM’s
estimate
Approved
No. No. No. No. No. No.
LT-2a* 1531562 1516897 1595351 1574344 1663477 1633970
LT-2b 3359 3359 3484 3484 3614 3614
LT-3 199002 198949 207934 207866 217272 217182
LT-4 (b) 187 186 190 191 193 197
LT-4 (c) 3329 3462 3528 3817 3740 4207
LT-5 29515 29515 31519 31478 33665 33571
LT-6 13885 13550 14824 14467 15826 15446
LT-6 18449 17728 19728 18957 21095 20271
LT-7 12802 12802 12802 12802 12802 12802
HT-1 80 80 86 85 92 91
HT-2 (a) 743 771 788 818 836 867
HT-2 (b) 577 577 597 581 618 585
HT2C 277 277 302 302 327 327
HT-3(a)& (b) 24 24 24 24 24 24
HT-4 47 47 49 49 51 51
HT-5 20 20 20 20 20 20
Sub-Total
other than BJ/KJ
and IP sets
Other than BJ/KJ &
IP
1813858 1798246 1891226 1869285 1973652 1943226
BJ/KJ 155065 155065 162446 162446 170178 170178
IP Sets 292860 292860 310578 310578 329368 329368
Sub Total
BJ/KJ and IP sets
447925 447925 473024 473024 499546 499546
Total** 2261783 2246171 2364250 2342309 2473198 2442772
*Includes BJ/KJ consuming more than 18 units/installation/month
** Total excludes KPCL and SEZ
Accordingly, the category- wise approved sales for the control period
vis-à-vis the estimates made by MESCOM is indicated below:
TABLE – 5.5
Category wise approved Energy sales
FY-17 FY-18 FY-19
lxxiv
Category
MESCOM’s
estimate
Approved MESCOM’s
estimate
Approved MESCOM’s
estimate
Approved
MU MU MU MU MU MU
LT-2a* 1383.79 1384.25 1472.96 1473.41 1567.94 1568.35
LT-2b 13.65 12.94 14.89 14.12 16.25 15.42
LT-3 338.89 341.71 357.41 360.38 376.92 380.06
LT-4 (b) 1.35 0.89 1.43 0.86 1.51 0.83
LT-4 (c) 6.15 4.81 6.24 4.87 6.34 4.94
LT-5 137.89 135.89 141.29 137.18 144.79 138.48
LT-6 122.68 118.39 130.97 126.63 139.82 135.43
LT-6 61.47 63.10 63.18 64.86 64.94 66.66
LT-7 19.12 19.12 19.12 19.12 19.12 19.12
HT-1 87.38 87.38 89.47 89.63 91.61 91.94
HT-2 (a) 800.82 805.52 853.59 861.12 909.84 920.56
HT-2 (b) 156.71 168.53 158.15 176.38 159.60 184.60
HT2C 180.37 180.37 197.23 197.23 214.09 214.09
HT-3(a)&
(b)
23.22 23.22 23.22 23.22 23.22 23.22
HT-4 14.98 15.56 15.28 16.18 15.59 16.82
HT-5 7.20 7.20 7.20 7.20 7.20 7.20
Sub-Total
other than
BJ/KJ and
IP sets
Other than
BJ/KJ & IP
3355.67 3368.88 3551.63 3572.38 3758.78 3787.72
BJ/KJ 14.26 14.59 14.94 15.28 15.65 16.01
IP 1284.26 1217.69 1361.96 1291.36 1444.36 1369.48
Sub Total
BJ/KJ and
IP sets
1298.52 1232.28 1376.90 1306.64 1460.01 1385.49
Total** 4654.19 4601.16 4928.53 4879.03 5218.79 5173.21
*Includes BJ/KJ consuming more than 18 units/installation/month
** Excludes sales to KPCL and SEZ
In addition to the above, estimated sale of 10.68 MU per year to KPCL,
for the control period, is also approved.
5.2.3 Distribution Losses for FY17-19:
MESCOM’s Submission:
As per the audited accounts for FY15, the MESCOM has reported
distribution losses of 11.56% as against an approved loss level of 11.50%.
The Commission in its Tariff Order dated 2nd March, 2015 had fixed the
target level of losses for FY16 at 11.25%. MESCOM in its filing has
proposed to achieve the following loss levels during FY17-19:
lxxv
TABLE – 5.6
Projected Distribution Losses-FY17-19 – MESCOM’s Submission
Loss Figures in %
Particulars FY17 FY18 FY19
Projected
Distribution losses
11.15 11.05 10.95
Commission’s Analysis and Decisions:
The performance of MESCOMin achieving the loss targets set by the
Commission in the past five years is as follows:
TABLE – 5.7
Approved & Actual Distribution Losses-FY10 to FY16
Loss Figures in %
Particulars FY10 FY11 FY12 FY13 FY14 FY15 FY16
Approved Distribution
losses
12.90 12.50 12.10 12.00 11.75 11.50 11.25
Actual distribution
losses
12.64 13.07 12.09 11.88 11.93 11.56 -
The Commission notes that the loss reduction achieved by MESCOM in
the control period FY11-13 was 0.76 percentage point. In the
preceding years of FY14 & FY15, the loss reduction has been 0.32
percentage point (in two years of the control period FY14-16). Overall
in the past five years MESCOM has been able to achieve distribution
loss reduction of 1.08 percentage point.
The distribution loss projections indicated by the MESCOM shows
reduction from existing levels of 11.56% in FY15 to 11.15% in FY17 and
further reduction 0.10 percentage point for each of the year in FY18
and FY19. It is observed that, the Commission has been allowing
lxxvi
capital expenditure as incurred by the MESCOM 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 MESCOM not only to strengthen its infrastructure but
also reduce the distribution losses.
Thus, by considering the present loss level, the Commission decides to
fix the following distribution loss targets for FY17-19:
TABLE – 5.8
Approved Distribution Losses for FY16
Loss Figures in %
Particulars FY17 FY18 FY19
Upper limit 11.35 11.25 11.15
Average 11.15 11.05 10.95
Lower limit 10.95 10.85 10.75
5.2.4 Power Purchase for FY17-19:
The ESCOMs in their filings, have submitted the D1 statement where in
the requirement of power purchase for the control period has been
furnished. The consolidated statement showing the energy
requirement year-wise is shown hereunder:
lxxvii
TABLE – 5.9
Requirement of electricity as filed by Licensees
Distribution Utilities 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 13942.08 14849.40
GESCOM 8559.14 8902.63 9292.18
HRECS 322.87 350.14 372.61
AEQUS 12.98 17.78 22.46
MSEZ 80.49 89.33 113.06
TOTAL 68424.40 72168.78 76161.08
MESCOM’s submission:
The MESCOM has submitted its power purchase requirement for the
control period FY17 to FY19 based on the projected sales as follows:
TABLE – 5.10
Energy Requirement as filed by MESCOM
Particulars As filed by MESCOM
FY 17 FY18 FY19
Sales (MU) 4777.94 5052.28 5342.56
Distribution losses (%) 11.45 11.05 10.95
Energy at IF point (MU) 5395.98 5679.91 5999.51
Transmission Losses (%) 3.47 3.37 3.27
Energy Required to meet the sales of
MESCOM (MU) 5589.95 5878.00 6202.32
Commission’s analysis and decisions:
The validation of sales and allowable distribution losses, has been
discussed in the previous section of this chapter. Based on the
approved sales and the allowable distribution losses, the requirement
of Power for the MESCOM, for the control period FY17 to FY19, is
worked out as detailed below:
lxxviii
The quantum of energy allowed by the Commission includes the
requirement of MESCOM - SEZ.
TABLE – 5.11
Power Purchase requirement approved
for the control period FY17 to FY19
Particulars FY 17 FY18 FY19
Sales (MU) 4611.84 4889.71 5183.89
Distribution losses (%) 11.15 11.05 10.95
Energy at IF point (MU) 5190.59 5497.14 5821.33
Transmission Losses (%) 3.47 3.37 3.27
Energy Required to meet
the sales of MESCOM
(MU) 5377.18 5688.86 6018.12
MSEZ Energy 83.38 92.45 116.88
Total Energy (MU) 5460.56 5781.31 6135.00
5.2.5 Sources of Power:
MESCOM’s submission;
MESCOM has submitted that PCKL has made the source wise energy
availability and related cost and the same is considered in its filings.
Commission’s analysis and decisions
The energy requirement of the ESCOMs, including MESCOM, is being
met by Karnataka Power Corporation Limited (KPCL) Generating
stations, Central Generating Stations (CGS), Major Independent Power
producers (IPPs) and Minor Independent Power producers (NCE
sources) through long-term power purchase agreement. The
contingent requirement to meet the deficit is being met through
purchases from Short/Medium term sources by calling for bids and also
purchases from the Power Exchange. Hence, to arrive at the available
quantum of energy and power for the control period FY17 to FY19, the
lxxix
Commission has considered the availability as furnished by KPCL and
by SRPC/CERC/CEA for CGS, in respect of their respective Generating
Stations. The availability of CGS stations is based on the share of
Karnataka, as notified from time to time.
In the case of Minor IPPs (NCE/RE sources), the actual generation
capacity contracted by the ESCOMs, as indicated in D-1 format has
been considered. The availability from the other sources such as Jurala
Hydel Station and TB dam Power Stations of Telangana State are taken
at 50% and 20 % of their installed capacity respectively as the share of
Karnataka, as per the contracts executed with these generators.
Further, as the Short Term Power/Medium Term Power procurement to
an extent of around 1108.80 MU has already been contracted by
ESCOMs till May 2016, the same has been considered towards
availability for FY17.
The availability as furnished by the KPCL in respect of Yermarus Unit-1 &
Unit-2 and Yelahanka Combined Cycle Power Plant (YCCPP), having a
capacity of 1600 MW and 350 MW respectively, has not been
considered, as the said generating stations are yet to be synchronized
with the grid and the CoD is yet to be declared. Similarly, Kudgi Unit1,
Unit 2 and Unit 3, having a total capacity of 2400 MW, are not
considered since they are yet to be synchronized with the grid and
CoD is yet to be declared.
The availability of BTPS unit 3 has been considered since it has been
synchronized and supplying power to the grid. As its commissioning
date and Commercial operation date is yet to be declared by the
KPCL, the quantum of energy is restricted to the requirement of
ESCOMs and allowed fuel expenses in FY17. For FY18 and FY19, the
availability of energy from this unit has been considered, as furnished
by the KPCL, duly limiting the quantum of energy as per the
requirement of ESCOMs, to meet the sales targets.
lxxx
Based on the above availability criteria, the energy allowed for the
State to achieve the sales target of the respective years is given in the
following Table.
TABLE – 5.12
ABSTRACT OF POWER PURCHASE APPROVED FOR ESCOMS FOR THE
CONTROL PERIOD FY17 TO FY19
SOURCES
FINANCIAL YEAR 2016-17 FINANCIAL YEAR 2017-18 FINANCIAL YEAR 2018-19
Energy
in MU
Cost in Rs
Cr
Per unit
Cost
Energy in
MU
Cost in Rs
Cr
Per unit
Cost
Energy in
MU
Cost in Rs
Cr
Per
unit
Cost
in Rs.
KPCL Hydel
Energy 10704.90 1001.38 0.94 12045.33 1099.16 0.91 12045.33 1139.37 0.95
KPCL Thermal
Energy 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 7462.68 3093.67 4.15 7462.68 3129.03 4.19 7462.68 3165.10 4.24
Renewable
Energy: 6846.71 2790.38 4.08 8394.81 3413.83 4.07 10265.57 4452.20 4.34
Other State
Hydel 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
PGCIL &
POSOCO
Charges - 949.21 0.44 958.70 0.45 968.29 0.45
KPTCL
Transmission
& SLDC and
PGCIL
POSOCO
Charges - 3112.76 0.48 3197.08 0.47 3500.45 0.50
TOTAL 65439.11 25806.89 3.94 68895.57 27343.97 3.97 72435.72 29683.58 4.10
5.2.6 MESCOM’s Power Purchase Cost & Transmission Charges:
MESCOM’s Submission:
MESCOM has submitted the Power Purchase cost including the
transmission charges and LDC charges, in D1 format wherein energy to
an extent of 5589.50 MU, 5904.27 MU and 6236.49 MU at a cost of
lxxxi
Rs.2147.08 Crores, Rs.2640.99 Crores and Rs.2785.42 Crores for the
respective years of control period of FY17, FY18 and FY19 respectively.
MESCOM has submitted that, the Power Purchase Cost is considered
as per the details furnished by M/s PCKL.
Commission’s analysis and decisions
After a detailed analysis of the tariff rates claimed by the MESCOM, the
Commission has arrived at the power purchase cost to be allowed in
the ARR for the control period.
The basis for computation of power purchase cost for the control
period FY17 to FY19 is as indicated below:
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 Muinirabad, 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
Commission’s 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.
The variations, if any, in these allowed costs, will be considered during
the FAC exercise / Annual Performance Review of FY17.
lxxxii
Based on the allowed requirement of energy and the power allocation
given by the Government of Karnataka, the Power Purchase quantum
and its costs are approved in the ARR of BESCOM for the control period
FY17 to FY19, as shown in Annexure- 1 & 2.
The consolidated power purchase cost allowed by the Commission vis-
a-vis the power purchase cost as filed by the MESCOM for the control
period FY17 to FY19 is shown in the following:
TABLE - 5.13
Approved Power Purchase Cost of MESCOM for FY17
Source of Power
Power Purchase Cost as filed by
MESCOM
Power Purchase Cost approved by
the Commission
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in
Rs
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in Rs
KPCL Hydel Energy: 1179.34 75.02 0.636 683.308 71.857 1.052
KPCL Thermal Energy 1794.09 775.86 4.325 1590.036 649.941 4.088
CGS Energy 1386.79 507.78 3.662 1725.969 559.750 3.243
UPCL 391.20 150.01 3.835 598.386 248.062 4.146
Renewable Energy 762.40 300.20 3.938 762.400 293.492 3.850
Others 13.09 5.36 4.095 11.553 5.431 4.701
Short Term 62.59 31.79 5.079 88.908 44.810 5.040
PGCIL & POSOCO
Charges 64.39 0.464 76.111 0.441
KPTCL Transmission,
SLDC & PGCIL/
POSOCO Charges 236.67 0.423 248.540 0.455
TOTAL 5589.500 2147.080 3.841274 5460.559 2197.994 4.0252175
TABLE – 5.14
Approved Power Purchase Cost of MESCOM for FY18
Source of Power
Power Purchase Cost as filed by
MESCOM
Power Purchase Cost approved
by the Commission
Energy in
MU
Cost in
Rs Cr
Per Unit
cost in
Rs
Energy in
MU
Cost in
Rs Cr
Per Unit
cost in
Rs
KPCL Hydel Energy 817.16 61.93 0.758 986.332 90.005 0.913
KPCL Thermal Energy 2397.20 1163.03 4.852 1582.305 687.203 4.343
CGS Energy 1599.70 619.45 3.872 1762.589 579.929 3.290
UPCL 281.43 124.67 4.430 611.082 256.221 4.193
Renewable Energy 827.20 331.95 4.013 827.200 306.090 3.700
lxxxiii
Others -18.42 -8.17 4.435 11.798 5.866 4.972
PGCIL & POSOCO Charges 0.00 83.43 0.522 0.000 78.503 0.445
KPTCL Transmission, SLDC
and PGCIL/ POSOCO
Charges 0.00 264.70 0.448 0.000 240.100 0.415
TOTAL 5904.270 2640.990 4.473017 5781.307 2243.916 3.881
TABLE – 5.15
Approved Power Purchase Cost of MESCOM for FY19
Source of Power
Power Purchase Cost as filed
by MESCOM
Power Purchase Cost
approved by the Commission
Energy
in MU
Cost in
Rs Cr
Per Unit
cost in
Rs
Energy
in MU
Cost in
Rs Cr
Per Unit
cost in
Rs
KPCL Hydel Energy 817.16 63.35 0.775 987.161 93.376 0.946
KPCL Thermal Energy 2397.20 1170.46 4.883 1720.447 753.830 4.382
CGS Energy 1772.32 687.80 3.881 1764.070 588.770 3.338
UPCL 281.43 125.93 4.475 611.595 259.392 4.241
Renewable Energy 1039.92 410.42 3.947 1039.920 391.967 3.769
Others -71.54 -29.82 4.168 11.808 6.210 5.259
PGCIL & POSOCO Charges 0.00 101.99 0.575 79.355 0.450
KPTCL Transmission and SLDC
& PGCIL POSOCO Charges 0.00 255.29 0.409 253.850 0.414
TOTAL 6236.49 2785.42 4.466 6135.001 2426.750 3.955582
The MESCOM shall regulate the quantum and cost of power as
approved by the Commission. However, since the power purchase
costs are uncontrollable as per MYT Regulations, any excess quantum
or cost will be trued up in Annual Performance Review of the respective
years.
The Commission had 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
lxxxiv
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 that, any short-term or medium-term
power procurement to be made over and above the approved
quantities, shall be made only through competitive bidding duly
complying with the GoI guidelines issued in the matter from time to
time.
5.2.7 Renewable Purchase Obligation (RPO) target for FY17:
a. Non-Solar RPO:
MESCOM has submitted that it will be able to achieve non-solar RPO of
12.97% as against target of 11% specified by the Commission vide its
(Procurement of Energy from Renewable Sources)(Third Amendment)
Regulations, 2015 for FY17.
The Commission has approved power purchase quantum of 5460.56
MUfor FY17 including the power purchase requirement of Mangalore
SEZ. The Non-solar RPO target would be 600.66 MU. The Commission
has approved purchase of 697.20 MU from RE sources other than Solar.
Thus, MESCOM would be able to meet its non-solar RPO.
In case, there is any need to buy RECs to fully meet the RPO, the cost
thereon would be factored in the APR of FY17.
b. Solar RPO:
As regards compliance of solar RPO, MESCOM has submitted that it will
be able to achieve solar RPO of 1.17% as against target of 0.75% as
specified by the Commission vide its (Procurement of Energy from
Renewable Sources)(Third Amendment) Regulations, 2015 for FY17.
lxxxv
The Commission has approved power purchase quantum of 5460.56
MU for FY17. The Solar RPO target would be 40.95 MU. The Commission
has approved purchase of 65.20 MU of Solar energy. Thus, MESCOM
would be able to meet its solar RPO also.
In case, there is any need to buy RECs to fully meet the RPO, cost
thereon would be factored in the APR of FY17.
5.2.8 O & M Expenses for FY17-19:
MESCOM’s Proposal:
The MESCOM in its application has requested the Commission to
consider the projected O&M expenses based on the employee cost,
R&M Expenses and A&G Expenses made on the following assumptions:
i. Administrative and General Costs are projected based on the past
4 years data.
ii. R&M Expenses are projected considering CAGR of 12.80% based on
past four years data.
iii. Employee-related costs have been projected based on the
following considerations.
Average annual basic pay per employee with reference to the
actual payments made in the year FY 15 and number of
employees working as at the end of March-2015 PLUS 3%
increase in basic pay per employee.
Working employee strength that exists as at the end of
September, 2015 is 3756. The working strength for FY16 and FY17
to FY19 are considered as 5786 and 7190, respectively by
considering the additional employees due to proposed
recruitment and the relevant employee cost has been factored
in the projection of employee expenditure.
lxxxvi
The increase in dearness allowance of 10% has been
considered for each of the years from FY16 (RE) to FY19 as
annual escalation in the in the dearness allowance.
In the year FY15, the other allowances such as house rent
allowance, etc., constitutes 11.55% of the basic pay due to
increase in the rate of HRA, the growth rate of 13.55% has been
considered to project the allowances for each of the years from
FY16 (RE) to FY19.
As per KPTCL / ESCOMs Pension & Gratuity Trust Order, monthly
contribution rates towards pension and gratuity has been
considered as 30% and 6.01%.
Based on the above assumptions, MESCOM has sought the O & M
expenses for FY17-19 as detailed below:
TABLE – 5.16
O&M Expenses for FY17-19-MESCOM’s Proposal
Amount in Rs.Crores
Particulars FY17 FY18 FY19
Employee Costs 462.60 507.03 553.40
R&M Expenses 44.47 50.16 56.58
A&G Expenses 75.48 86.61 102.20
Total O&M Expenses 582.55 643.80 712.18
Commission’s analysis &decision:
As per the norms specified under the MYT Regulations, the O & M
expenses are controllable expenses and the distribution licensee is
required to regulate these expenses within the approved values.
The Commission, in its preliminary observations on the increase in
employee cost due to additional recruitment, had sought details of
lxxxvii
cadre-wise additional employee cost projected for FY17. Further,
MESCOM was requested to clarify the reasons for projecting abnormal
employee cost for FY17 by an increase of 62.47% over FY16.
MESCOM in its replies has stated that, about 1400 officers / employees
are proposed to be recruited during FY17 and the additional cost
would be Rs.55.35 Crores. As regards the factoring an abnormal
increase in employee cost for FY17, MESCOM has not furnished any
additional justified reasons.
MESCOM has not informed the status of the recruitment and the
proposed induction of such additional employees. In the absence of
supporting data for claiming such additional employee cost due to
recruitment, the Commission is of the view that such expenses could
be considered for being incurred by the distribution licensee.
However, the Commission is of the view that any increase in the
employee strength should reflect in improved productivity and
efficiency for improved revenues and the betterment of services
rendered by the ESCOMs to its consumers of the Company.
Accordingly, the Commission will look into the issue at the time of
approving the APR for relevant years, instead of loading these costs
upfront, in the present ARR exercise, in the absence of finalization of
such recruitment.
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.322.81 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
lxxxviii
CERC with CPI and WPI in a ratio of 80 : 20, the allowable annual
escalation rate for FY17 is computed as follows:
TABLE – 5.17
Computation of Inflation Index for FY17
Year WPI CPI Composite
Series Yt/Y1=Rt Ln Rt
Year
(t-1)
Product [(t-
1)* (LnRt)]
2003 92.6 107 104.12
2004 98.72 111.1 108.624 1.04 0.04 1 0.04
2005 103.37 115.8 113.314 1.09 0.08 2 0.17
2006 109.59 122.9 120.238 1.15 0.14 3 0.43
2007 114.94 130.8 127.628 1.23 0.20 4 0.81
2008 124.92 141.7 138.344 1.33 0.28 5 1.42
2009 127.86 157.1 151.252 1.45 0.37 6 2.24
2010 140.08 175.9 168.736 1.62 0.48 7 3.38
2011 153.35 191.5 183.87 1.77 0.57 8 4.55
2012 164.93 209.3 200.426 1.92 0.65 9 5.89
2013 175.35 232.2 220.83 2.12 0.75 10 7.52
2014 182 246.9 233.92 2.25 0.81 11 8.90
A= Sum of the product column 35.36
B= 6 Times of A 212.19
C= (n-1)*n*(2n-1) where n= No of years of data=12 3036.00
D=B/C 0.07
g(Exponential factor)= Exponential (D)-1 0.0724
e=Annual Escalation Rate (%)=g*100
7.24
For the purpose of determining the normative O & M expenses for
FY17-19, the Commission has considered the following:
e) The actual O & M expenses incurred as per the audited accounts
for FY15 inclusive of contribution to the Pension and Gratuity Trust to
determine the O & M expenses for the base year FY16.
f) The three year Compounded Annual Growth Rate (CAGR) of the
number of installations considering the actual number of
installations as per the audited accounts up to FY15 and as
projected by the Commission for FY16-FY19.
g) The weighted inflation index (WII) at 7.24% as computed above.
h) Efficiency factor at 1% as considered in the earlier two control
periods.
The above said parameters are computed duly considering the same
methodology as followed in the earlier Tariff Orders of the Commission.
lxxxix
Accordingly, the normative O & M expenses for FY17-19 are as follows:
TABLE – 5.18
Approved O & M expenses for FY17-19
Particulars FY16 FY17 FY18 FY19
No. of Installations 2246171 2342309 2442772
Consumer Growth Index based on 3 Year
CAGR 4.04% 4.13% 4.28%
Weighted Inflation index 7.24% 7.24% 7.24%
Base Year O&M Cost (as per actuals of FY15) 355.27
Total allowable O&M Expenses in Rs.Crores 391.78 432.40 477.89
Since, the base year data of O & M expense for FY16 also includes the
contribution to the P & G Trust, the Commission has not considered
allowing contribution to the P & G Trust separately for the control
period for FY17-19.
Thus, the Commission decides to approve O&M expenses of Rs.391.78
Crores for FY17, Rs.432.40 Crores for FY18 and Rs.477.89 Crores for FY19.
5.2.9 Depreciation:
MESCOM’s Proposal:
The MESCOM, in its application has claimed the depreciation for the
control period based on the following assumptions:
1) Depreciation rates as specified by CERC is applied on the Assets for
each year of the control period.
2) Depreciation withdrawn on the assets created on account of
contribution / grants as per Accounting Standard-12 at the same
rate of depreciation as at the end of each year for the control
period.
Accordingly, MESCOM has claimed the depreciation for FY17-19 as
detailed below:
xc
TABLE – 5.19
Depreciation-FY17-19- MESCOM’s Proposal
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Depreciation 76.53 85.24 94.94
Commission’s analysis and decision:
In accordance with the provisions of the MYT Regulations and
amendments issued thereon, the Commission has determined the
depreciation for FY17-19 considering the following:
a) The actual rate of depreciation of category-wise assets is
determined considering the depreciation and gross block of
opening and closing balance of fixed assets as per the audited
accounts for FY15.
b) This actual rate of depreciation so arrived at is considered to allow
the depreciation on the gross block of fixed assets projected by
MESCOM in its filing for FY17-19 duly considering the projection for
FY16.
c) The depreciation on account of assets created out of consumers
contribution / grants are considered (deducted)based on the
opening and closing balance of such assets duly considering the
addition assets as proposed by the MESCOM at the weighted
average rate of depreciation as per actuals in FY15.
Accordingly, the depreciation for FY17-19 are as follows:
TABLE – 5.20
Approved Depreciation for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Buildings 1.16 1.26 1.36
xci
Civil 0.16 0.18 0.20
Other Civil 0.04 0.05 0.06
Plant & M/c 14.80 16.38 17.97
Line, Cable Network 60.90 67.90 75.32
Vehicles 0.08 0.09 0.09
Furniture 0.20 0.22 0.23
Office Equipments 0.04 0.04 0.04
Depreciation 77.38 86.12 95.29
Thus, the Commission decides to approve an amount of Rs.77.38
Crores, Rs.86.12 Crores and Rs.95.29 Crores towards depreciation for
FY17, FY18 and FY19 respectively.
xcii
5.2.10 Interest on Capital Loans:
MESCOM’s proposal:
MESCOM in its application has stated that, the Interest and Finance
charges for the control period are computed based on the following
assumptions:
CAPEX of Rs.353.89 Crores, Rs.320.40 Crores, Rs.325.40 Crores and
Rs.330.40 Crores for the years FY16 (RE), FY17, FY18 and FY19,
respectively and 70% of these investments is considered for loan.
Interest rate in respect of the loans from commercial banks is taken
as 11.50% on opening balance of each year.
Interest rate in respect of the loans from REC is taken as 12.25% on
opening balance of each year.
Interest rate for the RGGVY, PMGY and PFC schemes is considered
as 11.75%, 12.00% and 9.00% respectively on opening balance of
each year.
Interest rate in respect of the loans from GoK is taken as 11.00% on
opening balance of each year.
Based on the above assumptions. MESCOM has requested to approve
interest on loans for FY17-19 as follows:
TABLE – 5.21
Interest on Capital Loans– MESCOM’s Proposal
Amount in Rs. Crores
Commission’s analysis and decision:
The Commission has taken note of the capex requirement and the
capital loan proposals of the MESCOM for FY17-19. As discussed earlier,
Particulars FY-17 FY-18 FY-19
Interest on capital loans 90.61 98.26 103.62
xciii
considering the approved capex, the requirement of capital loan on
the basis of 70% of the capex works out to Rs.202.23 Crores, Rs.202.58
Crores and Rs.202.93 Crores for FY17, FY18 and FY19 respectively.
Further, the Commission has considered the repayment of loan at
Rs.163.21 Crores, Rs.184.80 Crores and Rs.209.28 Crores for FY17, FY18
and FY19 respectively, as proposed by MESCOM.
As per the audited accounts and APR of FY15, the MESCOM had
incurred interest on capital loans at a weighted average rate of
interest of 11.47%. This rate of interest is considered for the existing loan
balances for which interest has to be factored during FY17. Further, for
the years FY18 and FY19, the weighted average rate of interest of the
preceding year has been considered on the existing loan balances.
As regards the additional loans during the control period, the
Commission has considered the same in compliance with the debt
equity ratio of 70 : 30. The present interest rates by commercial banks
and financial institutions are charged mainly on the basis of base rate
of interest declared by RBI from time to time plus spread of certain
basis points depending upon the tenure of the loan. Hence, the
Commission would consider the same approach in factoring the
interest on the new capital loan. As per the data furnished by
MESCOM, the interest on new capital loans are proposed at the rates
ranging from 9% to 12.25%. The Commission notes that the interest rates
proposed by MESCOM are comparatively on a higher side. MESCOM
needs to initiate financial prudence measures so as to avail loans at
comparatively lesser interest rates and reduce its interest burden on
consumers. However, considering the base rate of interest with spread
of 200 basis points and considering the downward trend in the interest
rate, the Commission decides to allow capital loans at an interest rate
of 11.75% for FY17-19. It shall be noted that, the rate of interest now
considered by the Commission on the new capital loans for the control
period is subject to review during APR and revision of ARR of the
relevant years of the control period.
xciv
Accordingly, the approved interests on capital loan for FY17-19 are as
follows:
TABLE – 5.22
Approved Interest on capital loan for FY17-19
Amount in Rs.Crores
Particulars FY17 FY18 FY19
Opening balance of loans 563.00 602.02 619.80
Add new Loans 202.23 202.58 202.93
Less Repayments 163.21 184.80 209.28
Total loan at the end of the year 602.02 619.80 613.45
Average Loan 582.51 610.91 616.62
Approved Interest on capital loan 67.07 70.33 70.99
Thus, the Commission decides to approve interest on capital loans of
Rs.67.07 Crores, Rs.70.33 Crores and Rs.70.99 Crores for FY17, FY18 and
FY19 respectively.
5.2.11 Interest on Working Capital Loan:
MESCOM’s proposal:
MESCOM has claimed interest on working capital based on the norms
prescribed in the MYT Regulations as follows:
TABLE – 5.23
Interest on Working Capital Loan – MESCOM’s Submission
Amount in Rs. Crores
Particulars FY 17 FY 18 FY 19
1/12th of O&M Expenses 48.55 53.65 59.35
Opening GFA 1535.04 1707.37 1900.03
1% on opening GFA 15.35 17.07 19.00
1/6th of Revenue 434.59 458.98 484.79
Total Working Capital 498.49 529.70 563.14
Rate of Interest (%) [*] 11.75% 11.75% 11.75%
Interest on Working Capital 58.57 62.24 66.17
xcv
Commission’s analysis and decision:
As per the norms specified under the MYT Regulations, the Commission
has computed the interest on working capital which consists of one
month’s O & M expenses, 1% of opening GFA and two month’s
revenue.
The present interest rates by commercial banks and financial
institutions are charged mainly on the basis of base rate of interest
declared by RBI from time to time. Hence, the Commission would
consider base rate plus spread of certain basis points depending upon
the tenure of the loan. As per the MESCOM’s application, it is stated
that short term loans for FY15 and FY16 have been availed at the rate
of interest ranging from 10.35% to 11.25%. The Commission notes that,
the present short term loans availed by MESCOM is comparatively at a
higher rate of interest. MESCOM needs to initiate financial prudence
measures in availing short term loans so that the interest burdens on its
consumers are reduced. However, considering the base rate of interest
with spread of 250 basis points and noting the downward trend in the
interest rate, the Commission decides to allow working capital loans at
a normative interest rate of 11.75% for FY17-19.
Accordingly, the approved interest on working capital for FY17-19 are
as follows:
TABLE – 5.24
Approved Interest on Working Capital Loan for FY17-19
Amount in Rs. Crores
Particulars FY 17 FY 18 FY 19
One-twelfth of the amount of O&M Expenses. 32.65 36.03 39.82
Opening Gross Fixed Assets(GFA) 1535.04 1707.37 1900.03
Stores, materials and supplies 1% of Opening
balance of GFA 15.35 17.07 19.00
One-sixth of the Revenue 425.52 451.16 478.30
Total Working Capital 473.52 504.27 537.13
Rate of Interest (% p.a.) 11.75% 11.75% 11.75%
xcvi
Interest on Working Capital Loan 55.64 59.25 63.11
Thus, the Commission decides to approve interest on working capital
loan of Rs.55.64 Crores, Rs.59.25 Crores and Rs.63.11 Crores for FY17,
FY18 and FY19 respectively.
5.2.12 Interest on Consumer Security Deposit:
MESCOM’s proposal:
MESCOM has claimed interest on consumer security deposit as follows:
TABLE – 5.25
Interest on Consumer Security Deposits for FY17-19- MESCOM’s Proposal
Amount in Rs. Crores
Particulars FY-17 FY-18 FY-19
Opening balance of Consumer Security
Deposit 490.63 552.79 618.86
Proposed addition during the year 62.16 66.07 70.25
Total deposits 552.79 618.86 689.11
Rate of Interest per annum. 9.00% 9.00% 9.00%
Interest on Consumer Security Deposit 49.75 55.70 62.02
Commission’s analysis and decision:
In accordance with the KERC (Interest on Security Deposit) Regulations
2005, the interest rate to be allowed is the bank rate prevailing on the
1st of April of the financial year for which interest is due. As per Reserve
Bank of India notification dated 29th September, 2015, the bank rate is
7.75%. This being the latest notified bank rate, the Commission has
considered the same for computation of interest on consumer Security
deposits for FY17-19.
The Commission has considered the deposits as per audited accounts
of FY15 and half yearly accounts of FY16 for onward projection for
FY17-19. The interest on consumer Security deposits for FY17-19 are as
follows:
xcvii
TABLE – 5.26
Approved Interest on Consumer Security Deposits for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Opening balance of consumer security
deposits 472.12 514.12 558.12
Rate of Interest at bank rate to be allowed
as per Regulations 7.75% 7.75% 7.75%
Approved interest on consumer security
deposits 38.22 41.55 45.04
Thus, the Commission decides to approve interest on consumer
security deposits of Rs.38.22 Crores, Rs.41.55 Crores and Rs.45.04 Crores
for FY17, FY18 and FY19 respectively.
5.2.13 Other Interest and Finance Charges:
MESCOM has claimed an amount of Rs.2.19 Crores towards other
interest and finance charges for each year of the control period FY17-
19. Considering the expenditure on this item in the earlier years, the
Commission decides to allow an amount of Rs.2.19 Crores towards
interest and finance charges for each of the years during the control
period FY17-19.
5.2.14 Interest and other expenses capitalised:
MESCOM has claimed an amount of Rs.2.39 Crores towards
capitalization of interest and other expenses during each year of the
control period. Considering, the capital expenditure incurred and
capitalized in the previous years, the Commission decides to allow
capitalization of interest and other expenses as proposed by MESCOM
for the control period FY17-19.
5.2.15 Interest on belated payment of power purchase cost:
MESCOM in its application has requested to allow interest on belated
payment of power purchase cost. However, as per format A1
xcviii
MESCOM has not indicated any amount towards interest on belated
payment of power purchase cost for the control period. Since interest
on working capital is being allowed separately as per the norms for
managing the day to day expenditure of the company without any
delay, the Commission decides not to allow interest on belated
payment of power purchase cost separately.
The abstract of approved interest and finance charges for FY17-19 are
as follows:
TABLE – 5.27
Approved Interest and finance charges for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Interest on Capital Loan 67.07 70.33 70.99
Interest on Working Capital Loan 55.64 59.25 63.11
Interest on Consumers Security Deposit 38.22 41.55 45.04
Other Interest & Finance Charges 2.19 2.19 2.19
Less: Interest & other expenses capitalized (2.39) (2.39) (2.39)
Total Interest & Finance Charges 160.73 170.93 178.93
5.2.16 Other Debits:
MESCOM in its application has claimed an amount of Rs.6.46 Crores
towards other debits for each year of the control period FY17 – 19. The
Commission has not been allowing the projections for other debits for
the reason that, the same cannot be estimated beforehand. The
Commission therefore has not allowed the same in the ARR for the
control period. However the actual expenses would be considered as
per the audited accounts for the relevant years, at the time of APR.
5.2.17 Net Prior Period Credit / Charges:
MESCOM in its application has claimed net prior period credit /
charges of Rs.4.95 Crores for each year of the control period FY17 – 19.
The Commission has not been considering the projections for net prior
period credit / charges for the reason that the same cannot be
xcix
estimated beforehand. The Commission therefore has not allowed the
same in the ARR for the control period. However, such expenses would
be considered as per the audited accounts for the relevant years at
the time of APR.
5.2.18 Return on Equity:
MESCOM’s proposal:
MESCOM in its application has claimed RoE for the control period FY17-
19 based on the opening balances of share capital, share deposit,
reserves and surplus and Return on Equity earned during the previous
years without MAT as detailed below:
TABLE – 5.28
Return on Equity – MESCOM’s Proposal
Amount in Rs.Crores
Particulars FY-17 FY-18 FY-19
Paid up Share capital 216.07 216.07 216.07
Share deposit 36.66 36.66 36.66
Reserves and surplus 137.37 197.84 267.68
Previous years RoE
without MAT 60.47 69.84 80.66
Total equity 450.57 520.41 601.07
Return on Equity 87.31 100.84 116.47
Commission’s analysis and decision:
The Commission has considered the actual amount of share capital,
share deposits and reserves & surplus as per the audited accounts for
FY15 and the additional share deposit reported in the half yearly
accounts for FY16 for arriving at the allowable equity base for the
control period FY17-19.
The Commission, in accordance with the provisions of the MYT
Regulations has considered 15.5% of Return on Equity duly grossed up
with the applicable Minimum Alternate Tax (MAT) of 21.342%. This
works out to 19.706% per annum. Also an amount of Rs.26.00 Crores of
recapitalized consumer security deposit as networth is considered as
c
per the orders of the Hon’ble Appellate Tribunal for Electricity in
Appeal No.46/2014.
Further, in compliance with the Orders of the Hon’ble ATE in Appeal
No.46/2014, wherein it is directed to indicate the opening and closing
balances of gross fixed assets along with break-up of equity and loan
component in the Tariff Order henceforth, the details of GFA, debt and
equity (networth) for FY17-19 are as follows:
TABLE – 5.29
Status of Debt Equity Ratio for FY17-19
Amount in Rs.Crores
Year Particulars GFA Debt Equity
(Networth)
Normative
Debt @
70% of
GFA
Normative
Equity @
30% of
GFA
%age
of
actual
debt
on
GFA
%age
of
actual
equity
on
GFA
FY17 Opening
Balance
1535.04 563.00 363.38 - - - -
Closing
Balance
1707.37 602.02 419.71 1195.16 512.21 35.26% 24.58%
FY18 Opening
Balance
1707.37 602.02 419.71
Closing
Balance
1900.03 619.80 484.76 1330.02 570.01 32.62% 25.51%
FY19 Opening
Balance
1900.03 619.80 484.76
Closing
Balance
2090.96 613.45 559.90 1463.67 627.29 29.34% 26.78%
From the above table it is evident that the debt equity amount 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 – 5.30
Approved Return on Equity for FY17-19
Amount in Rs. Crores
ci
Particulars FY17 FY18 FY19
Opening Balance of Paid Up Share Capital 252.73 252.73 252.73
Share Deposit 2.68 2.68 2.68
Reserves and Surplus 133.97 190.30 255.35
Less Recapitalised Security Deposit 26.00 26.00 26.00
Total Equity 363.38 419.71 484.76
Approved Return on Equity with MAT 71.61 82.71 95.53
Thus, the Commission decides to approve Return on Equity of Rs.71.61
Crores, Rs.82.71 Crores and Rs.95.53 Crores for FY17, FY18 and FY19
respectively.
5.2.19 Other Income:
MESCOM’s proposal:
MESCOM has claimed other income for the control period as detailed
below:
TABLE – 5.31
Other Income – MESCOM’s Proposal
Amount in Rs.Crores
Particulars FY-17 FY-18 FY-19
Other Income 109.16 109.16 109.16
Commission’s analysis and decision:
The other income received by MESCOM mainly includes income from
interest on bank deposits, rent from staff quarters and sale of scrap,
interest on energy balancing dues and miscellaneous recoveries
besides incentives for timely payment of power purchase bills. The
Commission notes that MESCOM also receives income from sale of
power to MSEZ which needs to be factored under other income.
Based on the amount of other income earned by MESCOM in the
previous years, the normal other income works out to Rs.30.00 Crores
per year. Further, considering the expected revenue from sale of
power to MSEZ and normative increase, the other income for the
control period is as follows:
cii
TABLE – 5.32
Approved Other Income for FY17-19
Amount in Rs.Crores
Particulars FY-17 FY-18 FY-19
Other Income 73.77 80.54 95.36
ciii
5.2.20 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.0.50 Crore per
year towards consumer relations / consumer education. This amount
is earmarked to conduct consumer awareness and grievance
redressal meetings periodically and institutionalize a mechanism for
addressing common problems of the consumers. The Commission has
already issued guidelines for consumer education and grievance
redressal activities.
The Commission decides to continue providing an amount of Rs.0.50
Crore for each year of the control period FY17-19 towards meeting the
expenditure on consumer relations / consumer education.
The Commission directs MESCOM to furnish a detailed plan of action
for utilization of this amount and also maintain a separate account of
these funds and furnish the same at the time of APR.
5.3 Treatment of Regulatory Asset:
MESCOM in its application has claimed an amount of Rs. 92.25 Crores
as Regulatory asset to be recovered in the ARR for FY17.
The Commission notes that as per the Tariff Order dated 12th May, 2014
the deficit of Rs.173.72 Crores for FY13 was determined duly factoring
the additional subsidy of Rs.74.85 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.101.02 Crores was
set aside as regulatory asset to be recovered in the tariff over the next
two years (FY16 & FY17). The Commission had 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,
civ
the revenue earned was more than adequate to meet the expenses
during FY15. In fact, the APR of FY15 indicates a surplus of Rs.144.52
Crores.
Further, the Commission in its Tariff Order dated 2nd March, 2015 had
decided to carry forward a Regulatory asset of Rs.92.25 Crores being
determined as detailed below:
TABLE – 5.33
Treatment of Regulatory Asset
Sl.
No Particulars
Amount in
Rs Crs
1 Regulatory asset as per Commission’s Order dated 12th May, 2014. 101.02
2 Surplus in revenue on APR of FY14 86.00
3 Gap in revenue as per ARR for FY16. 160.49
4 Total Gap for FY16 175.51
5 Additional revenue allowed by revision of tariff in FY16 81.37
6 Balance unfilled gap in revenue 94.14
7 Amount disallowed on imprudent capex (1.89)
8 Regulatory asset to be recovered in FY17 92.25
Hence the Commission decides to include an amount of Rs.92.25
Crores in the ARR for FY17.
5.4 Abstract of ARR for FY17-19:
In the light of the above analysis and decisions of the Commission, the
following is the approved ARR for the control period FY17-19:
TABLE – 5.34
Approved ARR for FY17-19
Amount in Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
Revenue at existing tariff
1 Revenue from tariff and Misc Charges 2027.71
2 Tariff Subsidy 525.41
3 Total Existing Revenue 2553.12 0.00 0.00
Expenditure in Rs Crs
4 Power Purchase Cost 1949.45 2003.82 2172.91
5 Transmission charges of KPTCL 246.90 238.16 251.83
cv
6 SLDC Charges 1.64 1.94 2.02
7
Power Purchase Cost including cost of
transmission 2197.99 2243.92 2426.76
8 O&M Expenses 391.78 432.40 477.89
9 Depreciation 77.38 86.12 95.29
Interest & Finance charges
10 Interest on Capital Loans 67.07 70.33 70.99
11 Interest on Working capital loans 55.64 59.25 63.11
12 Interest on belated payment on PP Cost 0.00 0.00 0.00
13 Interest on consumer security deposits 38.22 41.55 45.04
14 Other Interest & Finance charges 2.19 2.19 2.19
15
Less: interest & other expenses
capitalised 2.39 2.39 2.39
16 Total Interest & Finance charges 160.73 170.93 178.93
17 Other Debits 0.00 0.00 0.00
18 Net Prior Period Debit/Credit 0.00 0.00 0.00
19 Return on Equity 71.61 82.71 95.53
20
Funds towards Consumer
Relations/Consumer Education 0.50 0.50 0.50
21
Other Income (Including income from
MSEZ) 73.77 80.54 95.36
22 ARR 2826.22 2936.03 3179.54
23 Surplus for FY15 carried forward 144.52
24 Regulatory asset -92.25
25 Net ARR 2773.95 2936.03 3179.54
5.5 Segregation of ARR into ARR for Distribution Business and ARR for Retail
Supply Business:
MESCOM 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.
Commission’s Analysis and Decisions:
Since no new proposal has been furnished by MESCOM, the
Commission decides to continue with the existing ratio of segregation
of ARR as detailed below:
cvi
TABLE – 5.35
Approved Segregation of ARR – FY17 - 19
Particulars Distribution
Business
Retail Supply
Business
O&M 39% 61%
Depreciation 84% 16%
Interest on Loans 100% 0%
Interest on Consumer Deposits 0% 100%
RoE 78% 22%
GFA 84% 16%
Non-Tariff Income 7% 93%
Accordingly, the following is the approved ARR for Distribution Business
and Retail supply business:
TABLE – 5.36 APPROVED REVISED ARR FOR DISTRIBUTION BUSINESS – FY17 - 19
Amount in
Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
1 O&M Expenses 152.80 168.64 186.38
2 Depreciation 65.00 72.34 80.04
Interest & Finance Charges
3 Interest on Capital Loans 67.07 70.33 70.99
4 Interest on Working capital loans 6.51 7.05 7.63
5 Interest on consumer security deposits 0.00 0.00 0.00
6 Other Interest & Finance charges 2.19 2.19 2.19
7 Less interest & other expenses capitalised 2.39 2.39 2.39
8 ROE 55.85 64.51 74.51
9 Other Income 5.16 5.64 6.68
10 ARR 341.87 377.03 412.67
TABLE – 5.37
APPROVED ARR FOR RETAIL SUPPLY BUSINESS – FY17 - 19
Amount in Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
1 Power Purchase 1949.45 2003.82 2172.91
2 Transmission Charges 248.54 240.10 253.85
3 O&M Expenses 238.99 263.77 291.51
4 Depreciation 12.38 13.78 15.25
Interest & Finance Charges
5 Interest on Capital Loans 0.00 0.00 0.00
cvii
6 Interest on Working capital loans 49.13 52.20 55.48
7 Interest on consumer security deposits 38.22 41.55 45.04
8 Other Interest & Finance charges 0.00 0.00 0.00
9 Less interest & other expenses capitalised 0.00 0.00 0.00
10 ROE 15.75 18.20 21.02
11 Other Income 68.61 74.90 88.68
12
Fund towards Consumer Relations /
Consumer Education 0.50 0.50 0.50
13 ARR 2484.35 2559.01 2766.86
5.6 Gap in Revenue for FY17:
As discussed above, the Commission decides to approve the Annual
Revenue Requirement (ARR) of MESCOM for its operations in FY17 at
Rs.2773.95 Crores as against MESCOM’s application proposing an ARR
of Rs.3090.52 Crores. This ARR is arrived at after considering the surplus
of Rs. 144.52 Crores of FY15 as discussed in Chapter-4 of this Order.
Based on the existing retail supply tariff, the total realization of revenue
will be Rs.2553.12 Crores which is Rs.220.83 Crores less than the
projected revenue requirement for FY17.
The net ARR and the gap in revenue for FY17 are shown in the following
table:
TABLE – 5.38
Revenue gap for FY17
Particulars FY17
Net ARR including carry forward surplus of FY15 (in Rs. Crores) 2773.95
Approved sales (in MU) 4611.84
Average cost of supply for FY17 (in Rs./unit) 6.01
Revenue at existing tariff (in Rs. Crores) 2553.12
Gap in revenue for FY17 (in Rs. Crores) (220.83)
The determination of revised retail supply tariff on the basis of the
above approved ARR is detailed in the following Chapter.
cviii
5.7 Application for Additional Revenue Requirement for FY17:
MESCOM’s Proposal:
The MESCOM, in its application dated 19th March, 2016, filed on 21st
March, 2016, seeking additional ARR for FY 17, has submitted that:
1. The Second Transfer Scheme Rules dated 31.05.2002 were issued by
the GoK, for transfer of assets and liabilities and personnel of KPTCL
to the ESCOMs. According to Rule 4(13) of these Rules, the State
Government is responsible for funding the pension and other
liabilities of the personnel as on the date of Second Transfer i.e.
31.05.2002 and sub-rule 13(2)(b) provides for establishment of a
Pension Trust for managing the fund.
2. The GoK, vide its order dated 19.12.2002, has ordered constitution
of the Pension and Gratuity Trust and also decided to adopt “Pay
as you go” approach, in funding the pension and gratuity
requirement.
3. The GoK vide its letter dated 25.02.2016, has informed that against
the proposed pension and gratuity contribution of 996.39 Crores for
FY17 and the arrears of pension contribution of Rs.2047.84 Crores
payable to KPTCL and ESCOMs, the Finance Department (FD) has
agreed to provide Rs.550 Crore for meeting the pension liability. As
there is difference between the proposed requirement and the
availability as indicated by the FD for FY17, the Pension Trust is
directed to work out the amount of contribution to be recovered
through tariff considering the indicative amount of contribution
available from the Government.
4. It is submitted by MESCOM that, as worked out by the Pension Trust,
an amount of Rs.239.88 Crores (Arrears of Rs.202.25 Crores and
Rs.37.63 Crores for FY17) has to be recovered through tariff.
Accordingly, MESCOM has filed an application claiming an additional
ARR of Rs.239.88 Crores, to be recovered through tariff.
cix
Commission’s views and decision
The Commission proceeds to dispose of the application filed by
MESCOM, as follows:
a) The application for additional ARR has been filed on 16th March,
2016, that is much after completion of the process of calling for
objections on the original tariff application and furnishing replies
thereon. The Commission has also completed the process of public
consultation by holding a public hearing, in respect of MESCOM, on
29th February, 2016.
b) As per Rule 4(13) of the Karnataka Electricity Reforms (Transfer of
Undertakings of KPTCL and its Personnel to Electricity Distribution
and Retail Supply Companies) Rules, 2002, notified by the
Government on 31.05.2002, the State Government is liable for
funding the pension and gratuity liability of existing pensioners as on
the effective date of Second Transfer Scheme.
c) The Government, as per its order dated 19.12.2002, has adopted
“pay as you go” approach to meet the pension and gratuity
requirements of existing pensioners on the effective date of second
transfer Scheme. With this arrangement, the GoK is liable to meet
the pension and gratuity requirement of existing pensioners as
noted above. Hence, this liability cannot be passed on to the
consumers, through tariff.
In view of the above, the Commission is unable to accept the
application for approval of additional ARR towards pension and
gratuity of the said pensioners. Accordingly, the said application
stands disposed of.
cx
CHAPTER – 6
DETERMINATION OF TARIFF FOR FY17
6.0 MESCOM’S Proposal and Commission’s Analysis for FY17:
6.1 Tariff Application
As discussed in the preceding Chapters, MESCOM has projected an
unmet gap in revenue of Rs.483.00 Crores for FY17. In order to bridge
this gap in revenue, MESCOM, in its Tariff Application, has proposed a
tariff increase of 102 paise per unit in respect of all the categories of
consumers.
6.2 Statutory Provisions Guiding Determination of Tariff
As per Section 61 of the Electricity Act 2003, the Commission is guided
inter-alia, by the National Electricity Policy, the Tariff Policy and the
following factors, while, determining the tariff so that,
the distribution and supply of electricity are conducted on
commercial basis;
competition, efficiency, economical use of resources, good
performance, and optimum investment are encouraged;
the tariff progressively reflects the cost of supply of electricity, and
also reduces and eliminates cross subsidies within the period to be
specified by the Commission;
efficiency in performance is to be rewarded; and
a Multi-Year Tariff framework is adopted
Section 62(5) of the Electricity Act 2003, read with Section 27(1) of the
KER Act 1999, empowers the Commission to specify, from time to time,
the methodologies and the procedure to be observed by the licensees
in calculating the Expected Revenue from Charges (ERC). The
Commission determines the Tariff in accordance with the Regulations
and the Orders issued by the Commission from time to time.
6.3 Consideration for Tariff Setting:
cxi
The Commission has considered the following relevant factors for
determination of Retail Supply Tariff:
a) Tariff Philosophy:
As discussed in the earlier tariff Orders, the Commission continues to
fix tariff below the average cost of supply for consumers whose
ability to pay is considered inadequate and fix tariff at or above the
average cost of supply for categories of consumers whose ability to
pay is considered to be higher. As a result, the system of cross
subsidy continues. However, the Commission has taken due care
to progressively bring down the cross subsidy levels as envisaged in
the Tariff Policy of the Government of India dated 6th January, 2006.
b) Average Cost of Supply:
The Commission has been determining the retail supply tariff on the
basis of the average cost of supply. The KERC (Tariff) Regulations,
2000 require the licensees to provide details of embedded cost of
electricity voltage / consumer category- wise. The distribution
network of Karnataka is such that, it is difficult to segregate the
common cost between voltage levels Therefore, the Commission
has decided to continue the average cost of supply approach for
recovery of the ARR. With regard to the indication of voltage- wise
cross subsidy with reference to the voltage wise cost of supply, the
decision of the Commission is noted in the subsequent para of this
Chapter.
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 New Tariff Proposals by MESCOM
cxii
MESCOM, in its tariff application has made the following new
proposals:
1. Increase in Fixed Charges:
MESCOM has proposed to increase the fixed charges by Rs.10/- Per
HP/KW in respect of LT installations and HT-3 installations and Rs.30 per
HP to HT-4 installations, Rs.40 per HP for HT-5 installations and in respect
of HT-1, HT-2(a), HT-2(b) and HT-2(c) installations, the demand charges
to be brought to Rs.200 per KVA level from the existing rate.
Commission’s Analysis and decisions:
On an analysis of the revenue at existing tariff of MESCOM, the
Commission notes that the total amount of fixed charges to be
recovered on the projected consumers, works out to Rs.197.10 Crores
for FY17. Whereas as per the approved ARR of MESCOM for FY17, the
fixed cost to be incurred in each of the activity in generation,
transmission and distribution is as follows:
Activity Total FC to be
incurred
Generation 421.82
Transmission including
SLDC charges
248.54
Distribution network cost 628.23
Total Fixed cost 1298.59
From the above analysis, the Commission notes that as against total
fixed expenditure of Rs.1298.59 Crores, MESCOM is able to collect the
fixed expenditure only to an extent of Rs.197.10 Crores in the form of
fixed charges at the existing rates. This accounts for recovery of only
15.18% of fixed charges. The remaining 84.82% is being recovered in
the form of energy charges which is not an efficient method of
recovery of fixed expenditure.
As per the Tariff Policy issued by the Ministry of Power, Government of
India, dated 28th January 2016, two-part Tariff featuring separate fixed
and variable charges shall be introduced for all consumer. In order to
ensure their financial viability, it is imperative that the fixed expenditure
cxiii
incurred by the ESCOMs are recovered in the form of fixed charges.
On study of the existing rate of fixed charges levied on the consumers
and the amount collected thereon, it is observed that fixed charges
needs to be increased gradually to meet the above objective. Hence
the Commission hereby decides to provide for collection of additional
fixed charge of Rs.5/- per KW/HP per month from the Domestic and LT
Industrial consumers and RS.10/- per KW /HP/ KVA per month from all
the other categories of consumers. This would enable the MESCOM to
recover an additional fixed charges from the projected consumers
only to the extent of Rs. 26.41 Crores and the projected total recovery
of fixed charges would be Rs.223.51 Crores for FY17 which accounts for
17.21% of the total fixed charges incurred.
2. Billing of auxiliary consumption of KPTCL:
MESCOM in its application has proposed Billing of auxiliary
consumption of KPTCL under LT-3 (Commercial tariff).
The Commission in its letter No. B/07/05/451 dated 23.06.2015
addressed to the MD, BESCOM where in it was suggested to seek
determination of tariff in respect of sale of power to KPTCL in
accordance with the provisions Clause 3.05 of the COS. It is further
informed, that the auxiliary consumption is not a part of transmission
loss but it is a part of the normative operation and maintenance of
KPTCL and the charges for the same are to be borne by KPTCL.
ESCOMs have not taken any action on the above suggestion made by
the Commission. Further, MESCOM has not suggested any new
proposals to bill the auxiliary consumption of KPTCL. Hence, in the
absence of submission of new proposal as required under the
provisions of COS, the Commission is unable to take any decision in the
matter.
3. Other proposals:
MESCOM has made the following proposals:
cxiv
a) Charge higher tariff to Kalyana Mantapas, where lavish wedding
are taking place.
b) Extend Concessional tariff to RO drinking water supply units.
c) Separate tariff category under HT for irrigation IP sets consumers.
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 except the proposals made.
6.5 Revenue at existing tariff and deficit for FY17:
The Commission in its preceding Chapters has decided to carry
forward the surplus in revenue of Rs.144.52 Crores of FY15 to the ARR of
FY17.The gap in revenue for FY17 is proposed to be filled up by revision
of Retail Supply Tariff as discussed in the following paragraphs of this
Chapter.
Considering the approved ARR for FY17 and the revenue as per the
existing tariff, the gap in revenue for FY17 is as follows:
TABLE – 6.1
Revenue Deficit for FY17
Amount Rs. in Crores
Particulars Amount
Approved Net ARR for FY17 including surplus of
FY15
2773.95
Revenue at existing tariff 2553.12
Deficit for FY17 (220.83)
Additional Revenue to be realised by Revision of
Tariff
220.83
Accordingly, in this Chapter, the Commission has proceeded to
determine the retail supply tariff for FY17. The category-wise tariff as
existing, as proposed by MESCOM and as approved by the
Commission is as follows:
cxv
1. LT-1 Bhagya Jyothi
The existing tariff and the tariff proposed are given below:
Sl.
No
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
1 Energy charges
(including recovery
towards service main
charges)
541 Paise / Unit Subject
to a monthly minimum
of Rs. 30 per installation
per month.
643 Paise / Unit Subject
to a monthly minimum
of Rs. 30 per installation
per month.
Commission’s Views/ Decision
The GoK, as a policy, has extended free power to all BJ/KJ consumers,
whose consumption is not more than 18 units per month. The tariff
payable by these consumers is revised to Rs.6.01 per unit.
Further, the ESCOMs have to claim subsidy for only those consumers
who consume 18 units or less per month per installation. If the
consumption exceeds 18 units per month or any BJ/KJ installation is
found to have more than one out let, it shall be billed as per the Tariff
Schedule LT 2(a).
The Commission determines the tariff (CDT) in respect of BJ / KJ
installations as follows:
cxvi
LT – 1 Approved Tariff for BJ / KJ installations
Commission determined Tariff Retail Supply Tariff
determined by the
Commission
601 paise per unit,
Subject to a monthly minimum of
Rs. 30 per installation per month.
-Nil-
Fully subsidized by GoK
*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. 6.01 per unit subject to a monthly minimum of Rs. 30/- per
Installation per month shall be demanded and collected from these consumers.
Note: If the consumption exceeds 18 units per month or any BJ/KJ
installation is found to have more than one light point being
used, it shall be billed as per Tariff Schedule LT 2(a).
2. LT 2 - Domestic Consumers:
MESCOM’s Proposal:
The details of the existing and proposed tariff under this category are
given in the Table below:
Proposed Tariff for LT-2 (a)
LT-2 a (i) Domestic Consumers Category
Applicable to areas coming under City Municipal Corporations and all
areas under Urban Local Bodies
Det
ails
Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed
Charges
per Month
For the first KW Rs.25 For the first KW Rs.25
For every additional KW
Rs.35
For every additional KW Rs.35
Energy
Charges
0-30 units
( life line
Consumpti
on )
0 to 30 units 270 paise/unit 0 to 30 units 372 paise
/unit
Energy
Charges
exceeding
30 Units
per month
31 to 100 units 400 paise/unit 31 to 100 units 502 paise
/ unit
101 to 200 units 540 paise
/unit
101 to 200 units 642 paise
/unit
Above 200 units 640 paise
/unit
Above 200 units 742 paise
/unit
LT-2 (a) (ii) Domestic Consumers Category
cxvii
Applicable to Areas under Village Panchayats
Details Existing as per 2015 Tariff Order
Proposed by MESCOM
Fixed charges per
Month
For the first KW Rs.15 For the first KW Rs.15
For every additional KW
Rs.25
For every additional
KW Rs.25
Energy Charges
0-30 units ( life line
Consumption )
0 to 30 units 260 paise
/unit
0 to 30 units 362 paise
/unit
Energy Charges
exceeding 30 Units
per month
31 to 100 units 370 paise
/ unit
31 to 100 units 472 paise
/ unit
101 to 200 units 510 paise
/unit
101 to 200 units 612 paise
/unit
Above 200 units 590 paise
/unit
Above 200 units 692 paise
/unit
Commission’s Views/ Decision
The Commission has decided to continue the two tier tariff structure 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.
The Commission approves the tariff for this category as follows:
cxviii
Approved Tariff for LT 2 (a) (i) Domestic Consumers Category:
Applicable to Areas coming under City Municipal Corporations and all
areas under Urban Local Bodies
Details Tariff approved by the
Commission
Fixed charges per Month For the first KW Rs.30/-
For every additional KW Rs.40/-
Energy Charges up to 30 Units per
month (0-30 Units)-life line consumption.
Up to 30 units: 300 paise/unit
Energy Charges in case the
Consumption exceeds 30 Units per
month
31 to 100 units: 440 paise/unit
101 to 200 units: 590 paise/unit
Above 200 units: 690 paise/unit
Approved Tariff for LT-2(a)(ii) Domestic Consumers Category:
Applicable to Areas under Village Panchayats
Details Tariff approved by the Commission
Fixed Charges per Month For the first KW Rs.20/-
For every additional KW Rs.30/-
Energy Charges up to 30
Units per month (0-30 Units)-
Lifeline Consumption
Up to 30 units: 290 paise/unit
Energy Charges in case the
Consumption exceeds 30
Units per month
31 to 100 units: 410 paise/unit
101 to 200 units: 560 paise/unit
Above 200 units: 640 paise/unit
cxix
LT2 (b) Private Professional Educational Institutions & Pvt. Hospitals and
Nursing Homes
MESCOM’s Proposal:
The details of the existing and the proposed tariff under this category
are given in the Table below:
LT 2 (b) Private and Professional Educational Institutions & Pvt. Hospitals
and Nursing Homes
LT 2 (b) (i) Applicable to all areas coming under urban Local Bodies
including Municipal Corporations
Details Existing as per 2015 Tariff Order Proposed by MESCOM
Fixed
charges per
Month
Rs.35 Per KW subject to a
minimum of Rs.65 PM
Rs.35 Per KW subject to a
minimum of Rs.65 PM
Energy
Charges
For the first 200 units: 600
paise per unit
For the first 200 units: 702
paise per unit
For the balance units: 720
paise per unit
For the balance units: 822
paise per unit
LT 2 (b) (ii) Applicable in Areas under Village Panchayats
Details Existing as per 2015 Tariff Order Proposed by MESCOM
Fixed
charges per
Month
Rs.25 Per KW subject to a
minimum of Rs.50 PM
Rs.25 Per KW subject to a
minimum of Rs.50 PM
Energy
Charges
For the first 200 units: 550
paise per unit
For the first 200 units: 652
paise per unit
For the balance units: 670
paise per unit
For the balance units: 772
paise per unit
cxx
Commission’s Views/ Decision
As in the previous Tariff Order, the Commission decides to continue the
two tier tariff structure as below:
(i) Areas coming under Municipal Corporation 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 Tariff approved by the Commission
Fixed Charges per Month Rs.45 Per KW subject to a minimum of Rs.75 per
Month.
Energy Charges 0-200 units: 625 paise/unit
Above 200 units: 745 paise/unit
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 Tariff approved by the Commission
Fixed Charges per Month Rs.35 Per KW subject to a minimum of Rs.60 per
Month
Energy Charges 0-200 units: 570 paise/unit
Above 200 units: 690 paise/unit
cxxi
3. LT3- Commercial Lighting, Heating and Motive Power.
MESCOM’s Proposal:
The existing and proposed tariff are as follows:
LT- 3 (i) Commercial Lighting, Heating and Motive Power
Applicable in areas under all Urban Local Bodies including City Municipal
Corporations
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Rs.40 per KW Rs.40 per KW
Energy Charges For the first 50 units: 695
paise per unit
For the first 50 units: 797
paise per unit
For the balance units: 795
paise per unit
For the balance units: 897
paise per unit
Demand based tariff (optional) where sanctioned load is above 5 KW
but below 50 KW.
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed
Charges
Rs.55 per KW Rs.55 per KW
Energy
Charges
For the first 50 units: 695 paise
per unit
For the first 50 units: 797 paise
per unit
For the balance units: 795
paise per unit
For the balance units: 897
paise per unit
LT-3 (ii) Commercial Lighting, Heating & Motive Power
Applicable in areas under village Panchayats
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
Fixed Charges
per Month
Rs. 30 per KW Rs.30 per KW
Energy Charges For the first 50 units: 645
paise per unit
For the first 50 units: 747
paise per unit
For the balance units:
745 paise per unit
For the balance units:
847 paise per unit
cxxii
Demand based tariff (optional) where sanctioned load is above 5 KW
but below 50 KW
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
Fixed Charges
per Month
Rs.45 per KW Rs.45 per KW
Energy Charges For the first 50 units: 645
paise per unit
For the first 50 units: 747
paise per unit
For the balance units:
745 paise per unit
For the balance units:
847 paise per unit
Commission’s Views/ 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 urban local
bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT- 3 (i) Commercial Lighting, Heating& Motive
Power
Applicable to areas under all urban local bodies including Municipal
Corporations
Details Approved by the Commission
Fixed Charges per Month Rs.50 per KW
Energy Charges For the first 50 units: 715 paise/ unit
For the balance units: 815 paise/unit
Approved Tariff for Demand based tariff (Optional) where sanctioned
load is above 5 kW but below 50 kW
Details Approved by the Commission
Fixed Charges per
Month
Rs.65 per KW
Energy Charges For the first 50 units: 715 paise /unit
For the balance units 815 paise/unit
Approved Tariff for LT-3 (ii) Commercial Lighting Heating& Motive Power Applicable to areas under Village Panchayats
Details Approved by the Commission
Fixed Charges per
Month
Rs.40 per KW
cxxiii
Energy Charges For the first 50 units: 665 paise per unit
For the balance units: 765 paise per unit
Approved Tariff for Demand based tariff (Optional) where sanctioned
load is above 5 kW but below 50 Kw
Details Approved by the Commission
Fixed Charges per
Month
Rs.55 per KW
Energy Charges For the first 50 units: 665 paise per unit
For the balance units: 765 paise per unit
4. LT4-Irrigation Pump Sets:
MESCOM’s Proposal:
The existing and proposed tariff for LT4 (a) is as follows:
LT-4 (a) Irrigation Pump Sets
Applicable to IP sets up to and inclusive of 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Nil Free (In case GoK does
not release the subsidy
in advance, CDT of 527
paise per unit will be
demanded and
collected from
Consumers)
Energy Charges CDT 425 paise per unit
Commission’s Views/ Decision
The Government of Karnataka has extended free supply of power to
farmers as per Government Order No.EN 55 PSR 2008 dated 04.09.2008.
As per this policy of GoK, the entire cost of supply to IP sets up to and
inclusive of 10 HP is being borne by the GoK through tariff subsidy. In
view of this all the categories under the existing LT-4a tariff are covered
under free supply of power.
Considering the cross subsidy contribution from categories other than
IP Sets & BJ/KJ Categories, the Commission determines the tariff for IP
Set under LT4(a) category as follows:
Approved CDT for IP Sets for FY17
cxxiv
Particulars MESCOM
Approved ARR in Rs Crore 2773.95
Revenue from other than IP & BJ/KJ installations in Rs
Crore 2189.22
Amount to be recovered from IP & BJ/KJ installations
in Rs Crore 584.73
Approved Sales to BJ/KJ installations in MU 14.59
Revenue from BJ/KJ installations at Average Cost of
supply in Rs Crore 8.77
Amount to be recovered from IP Sets category in Rs
Crore 575.96
Approved Sale to IP Sets in MU 1217.69
Commission Determined Tariff (CDT) for IP set
Category for FY17 in Rs/Unit 4.73
Accordingly, the Commission decides to approve tariff of Rs.4.73 per
unit as CDT for FY17 for IP Set category under LT4(a). In case the GoK
does not release the subsidy in advance, a tariff of Rs.4.73 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
Fixed Charges per Month Free
Energy Charges
CDT (Commission Determined Tariff):
473 paise per unit
* In case the GoK does not release the subsidy in advance, a tariff of
Rs. 4.73 per unit shall be demanded and collected from these
consumers.
PAYMENT OF SUBSIDY BY GOVERNMENT OF KARNATAKA FOR FY17:
Several consumers and stakeholders who participated in the Public
Hearing held by the Commission have expressed that the ESCOMs may
be showing part of their technical losses against IP set consumption by
inflating the number of live pump sets, in order to report technical
losses lower than the actual losses prevailing in the distribution system.
Further, they have also expressed that there are many defunct, non-
working/idle IP sets provided to both open wells and bore wells which
cxxv
have dried up and the same have not been identified / deleted from
the ledger accounts by the ESCOMs and that the ESCOMs, however,
are treating these IP sets as live IP set installations and claiming subsidy
from the Government, which needs to be stopped immediately. They
have requested the Commission to direct the ESCOMs to take up
enumeration of IP sets in their jurisdiction to identify defunct/dried up
wells and un-authorized IP sets in the field and take necessary action to
arrive at the correct number of IP sets in their account on the basis of
the enumeration report. The Commission is also of the view that IP sets
of defunct /dried up wells should be deleted in the accounts of the
ESCOMs in order to reflect exact numbers of live IP sets and its usage
for claiming subsidy from the Government and more importantly to
assess the performance of the ESCOMs.
The Commission has approved in respect of all the ESCOMs, a total
ARR of Rs.31,917.59 Crores for the FY17, which includes estimated
revenue of Rs.8,571.08 Crores against supply of 19,505.96 MU of power
to 25,64,999 number of IP sets (excluding HRECS). The Commission is of
the view that the actual number of IP set installations would be far less
than 25,64,999 approved for the FY17, if proper enumeration is carried
out to ascertain the correct number of IP sets by the ESCOMs.
Therefore, the ESCOMs need to immediately take up enumeration of IP
sets to arrive at the exact number of IP sets in use. The ESCOMs should
note that the quantum of sales to IP sets approved in ARR for FY17 is
subject to APR and the Commission will not accept such sales without
being substantiated in the manner specified by it.
The Commission has been issuing directives to ESCOMs for conducting
Energy Audit at the Distribution Transformer Centre (DTC)/feeder level
to enable detection and prevention of commercial losses. In view of
substantial progress in implementation of feeder segregation under
NJY scheme, the ESCOMs were also directed to submit IP set
consumption on the basis of the meter readings of the 11 kV feeders at
the substation level duly deducting the energy losses in 11kV lines,
distribution transformers & LT lines, in order to compute the
cxxvi
consumption of power by IP sets accurately. In this regard, the
Commission has noted that the ESCOMs have complied partly with
these directions and they have initiated measures to achieve full
compliance. The ESCOMs need to ensure full compliance as this has
direct impact on their revenues and tariff payable by other categories
of consumers.
For the forgoing reasons, the Commission directs the ESCOMs as
follows:
1) The ESCOMs shall manage supply of power to the IP sets for the
FY17, so as to ensure that it is within the quantum of subsidy
committed by the GoK. They shall procure power which is
proportional to such supply. In case the ESCOMs opt to supply
power to the IP sets in excess of the quantum corresponding to the
amount of subsidy the GoK has assured to be released for FY17, the
difference in the amount of subsidy relating to such supply shall be
claimed from the GoK. If the difference in subsidy is not paid by the
GoK, the same has to be collected from the IP set consumers.
2) The ESCOMs shall, immediately take up enumeration of IP sets,
11kV feeder wise by capturing the GPS co-ordinates namely
longitude, latitude and altitude of each live IP set in their jurisdiction
and complete this process within six months from the date of this
Order and submit the list of 11 kV feeder-wise IP sets’ census with
GPS co-ordinates to the Commission, on or before 15th October,
2016. The Commission would accordingly revise the number of IP
sets and its consumption for the FY17.
3) The ESCOMs shall compute the specific consumption and total sale
of energy to IP sets considering the month-wise energy input to 11
kV segregated agricultural feeders at the substation duly deducting
the energy losses prevailing in 11 kV lines, DTCs & LT Lines and
submit to the Commission, the monthly DTC wise/ feeder-wise
energy audit reports regularly in the formats prescribed by the
Commission, before 15th of succeeding month.
cxxvii
Pending compliance of the directives contained in (2) and (3) above,
the Commission hereby advises the Government to release only 90% of
the subsidy allocated for FY17. The Commission will advise the
Government, in the last quarter of the financial year to release the
balance 10% of subsidy for the year, on satisfactory compliance of the
above directives.
LT4 (b) Irrigation Pump Sets above 10 HP:
MESCOM’s Proposal
The existing and proposed tariff for LT-4(b) is as follows:
LT-4 (b) Irrigation Pump Sets:
Applicable to IP sets above 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Rs.30 per HP Rs.30 per HP
Energy Charges for
the entire
consumption
240 paise per unit 342 paise per unit
The existing and proposed tariff for LT4(c) is as follows:
LT-4 (c) (i) Irrigation Pump Sets:
Applicable to Private Horticultural Nurseries, Coffee and Tea
plantations up to & inclusive of 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Rs.20 per HP Rs.20 per HP
Energy Charges 240 paise per unit 342 paise per unit
LT-4 (c) (ii) Irrigation Pump Sets:
Applicable to Private Horticultural Nurseries, Coffee and Tea
plantations above 10 HP.
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Rs.30 per HP Rs.30 per HP
Energy Charges 240 paise per unit 342 paise per unit
Approved Tariff:
cxxviii
As in the previous Tariff Order dated 02nd March 2015, 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
Fixed Charges per Month Rs.40 per HP
Energy Charges for the entire
consumption
280 paise/unit
LT4(c) (i) Irrigation Pump Sets:
Applicable to Horticultural Nurseries,
Coffee, Tea & Rubber plantations up to & inclusive of 10 HP
Fixed Charges per Month Rs.30 per HP
Energy Charges 280 paise / unit
LT4 (c)(ii) Irrigation Pump Sets:
Applicable to Horticultural Nurseries, Coffee, Tea & Rubber
plantations above 10 HP
Fixed Charges per Month Rs.40 per HP
Energy Charges 280 paise/unit
cxxix
5. LT5 Installations-LT Industries:
MESCOM’s Proposal
The existing and proposed tariffs are given below:
LT-5(a) LT Industries:
Applicable to all areas under Municipal Corporation
i) Fixed charges
Details Existing as per 2015 Tariff Order Proposed by MESCOM
ii) Demand based Tariff (optional)
Details Description Existing Tariff as per
2015 Tariff order
Proposed by
MESCOM Fixed Charges per Month
Above 5 HP and
less than 40 HP
Rs.45 per KW of
billing demand
Rs.45 per KW of
billing demand
40 HP and above
but less than 67 HP
Rs.60 per KW of
billing demand
Rs. 60 per KW of
billing demand
67 HP and above Rs. 150 per KW of
billing demand
Rs. 150 per KW of
billing demand
iii. Energy Charges
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
For the first 500 units 475 paise per unit 577 paise/ unit
For the next 500
units
555 paise per unit 657 paise/ unit
Fixed Charges per Month
i)Rs.25 per HP for 5 HP &
below
ii) Rs.30 per HP for above 5 HP &
below 40 HP
iii) Rs.35 per HP for 40 HP &
above but below 67 HP
iv)Rs.100 per HP for 67 HP &
above
i) Rs.25 per HP for 5 HP &
below
ii) Rs.30 per HP for above 5
HP & below 40 HP
iii) Rs.35 per HP for 40 HP &
above but below 67 HP
iv)Rs.100 per HP for 67 HP &
above
cxxx
For the balance
units
585 paise per unit 687 paise/ unit
LT-5(b) LT Industries:
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Details Existing as per 2015 Tariff Order Proposed by MESCOM
ii) Demand based Tariff (optional)
Details Description Existing Tariff as per
2015 Tariff order
Proposed by
MESCOM
Fixed Charges per Month
Above 5 HP and
less than 40 HP
Rs. 45 per KW of
billing demand
Rs. 45 per KW of
billing demand
40 HP and above
but less than 67 HP
Rs. 60 per KW of
billing demand
Rs. 60 per KW of
billing demand
67 HP and above Rs. 150 per KW of
billing demand
Rs. 150 per KW of
billing demand
iii. Energy Charges
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
For the first 500 units 470 paise per unit 577 paise/ unit
For the next 500
units
550 paise per unit 657 paise/ unit
For the balance
units
580 paise per unit 687 paise/ unit
Fixed Charges per Month
i)Rs. 25 per HP for 5 HP &
below
ii) Rs. 30 per HP for above 5 HP
& below 40 HP
iii) Rs. 35 per HP for 40 HP &
above but below 67 HP
iv)Rs. 100 per HP for 67 HP &
above
i) Rs. 25 per HP for 5 HP &
below
ii) Rs. 30 per HP for above 5
HP & below 40 HP
iii) Rs. 35 per HP for 40 HP &
above but below 67 HP
iv)Rs. 100 per HP for 67 HP &
above
cxxxi
Existing ToD Tariff for LT5 : At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 paise per unit
Proposed TOD Tariff for LT5 : At the option of the consumer
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 paise per unit
Commission’s Views / Decisions:
Time of the Day Tariff:
The decision of the Commission in its earlier Tariff Orders providing for
mandatory Time of Day Tariff for HT2(a), HT2(b) and HT2(c) consumers
with a contract demand of 500 KVA and above is continued. 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) LT5 (a): For areas falling under Municipal Corporations.
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:
cxxxii
Approved Tariff for LT 5 :
Approved Tariff for LT 5 (a):
Applicable to areas under Municipal Corporations
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
Month
i) Rs.30 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
iii) Rs.40 per HP for 40 HP & above but below 67 HP
iv) Rs.100 per HP for 67 HP & above
Demand based Tariff (optional)
Fixed
Charges per
Month
Above 5 HP and less than 40
HP
Rs.50 per KW of billing
demand
40 HP and above but less
than 67 HP
Rs.65 per KW of billing
demand
67 HP and above Rs.150 per KW of billing
demand
ii) Energy Charges
Details Approved by the Commission
For the first 500 units 495 paise/unit
For the next 500 units 585 paise/ unit
For the balance units 615 paise/unit
cxxxiii
Approved Tariff for LT 5 (b):
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
Month
i) Rs. 30 per HP for 5 HP & below
ii) Rs. 35 per HP for above 5 HP & below 40 HP
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
Above 5 HP and less than 40
HP
Rs. 50 per KW of billing
demand
40 HP and above but less
than 67 HP
Rs. 65 per KW of billing
demand
67 HP and above Rs.150 per KW of billing
demand
iii) Energy Charges
Details Approved tariff
For the first 500 units 485 paise/ unit
For the next 500 units 570 paise/ unit
For the balance units 600 paise/unit
Approved TOD Tariff for LT5 :At the option of the consumer
TOD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-)125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
cxxxiv
6. LT6 Water Supply Installations and Street Lights
MESCOM’s Proposal:
The existing and the proposed tariffs are given below:
LT-6(a) : Water Supply
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges per
Month
Rs. 35/HP/month Rs. 35/HP/month
Energy Charges 340 paise/unit 442 paise/unit
LT-6 (b) : Public Lighting
Details Existing as per 2015 Tariff
Order
Proposed by MESCOM
Fixed Charges
per Month
Rs. 50/KW/month Rs. 50/KW/month
Energy Charges
LED Lighting
500 paise/unit
400 paise/unit
602 paise/unit
502 paise/ unit
The Commission approves the tariff for this category as follows:
Tariff Approved by the Commission for LT-6 (a): Water supply
Details Approved Tariff
Fixed Charges per
Month
Rs. 45 /HP/month
Energy Charges 390 paise/unit
Tariff Approved by the Commission for LT-6 (b): Public Lighting
Details Approved Tariff
Fixed Charges per
Month
Rs. 60/KW/month
Energy Charges 550 paise/unit
Energy Charges
for LED/ Induction
Lighting
450 paise/unit
7. LT 7- Temporary Installations and Advertising Hoardings:
MESCOM’s Proposal:
The existing rate and the rate proposed are given below:
cxxxv
LT-7 (a): Temporary Supply
a) Less than 67
HP:
Energy charge at 900
paise per unit subject
to a weekly minimum
of Rs. 160 per KW of
the sanctioned load.
Energy charge at 1002 paise
per unit subject to a weekly
minimum of Rs. 160 per KW of
the sanctioned load.
LT-7 (b): Temporary Supply
a) Less than 67
HP:
Energy charge at 900
paise per unit subject
to a weekly minimum
of Rs. 40 per KW/
month of the
sanctioned load.
Energy charge at 1002 paise
per unit subject to a weekly
minimum of Rs. 40 per KW/
month of the sanctioned load.
Commission’s Views/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 below.
APPROVED TARIFF SCHEDULE LT-7 (a)
Applicable to temporary Power Supply for all purposes
LT-7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes
Less than 67 HP:
Energy Charges at 950 paise / unit subject
to a weekly minimum of Rs.170 per KW of
the sanctioned load.
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
Details Existing as per 2015
Tariff Order
Proposed by MESCOM
cxxxvi
APPROVED TARIFF SCHEDULE LT-7 (b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the
interest of public such as Police Canopy Direction boards, and other
sign boards sponsored by the Private Advertising Agencies/firms on
permanent connection basis.
LT-7(b) Details Approved Tariff
Power Supply on
Permanent
connection basis
Less than 67 HP:
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 HT 2(c) consumers with contract demand of
less than 500 KVA. The details of ToD tariff are indicated under the
respective tariff category.
8. HT1 Water Supply & Sewerage
MESCOM’s Proposal:
The Existing and the Proposed tariff are as given below:
Sl.
No.
Details Existing tariff as per 2015
Tariff Order
Proposed tariff
1 Demand
Charges
Rs. 180 / kVA of billing
Demand / month
Rs. 180 / kVA for billing
Demand / month
2 Energy Charges 410 paise per unit 512 paise per unit
Existing ToD tariff to HT-1 tariff to Water Supply & Sewerage installations
at the option of the consumer
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxvii
22.00 Hrs to 06.00 Hrs next day (-) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff to HT-1
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- ) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Commission’s Views/Decision:
The Commission approves the tariff for HT 1 Water Supply and Sewerage category as below:
Approved Tariff for HT 1
Details Tariff approved by the Commission
Demand
Charges
Rs190 / kVA of billing demand / month
Energy Charges Rs 450 paise/ unit
Approved ToD tariff to HT-1 tariff to Water Supply &
Sewerage installations at the option of the consumer
22.00 Hrs to 06.00 Hrs next day (-)125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
9. HT2 (a) – HT Industries & HT 2 (b) – HT Commercial
MESCOM’s Proposal:
The existing and proposed tariff are as given below:
HT – 2 (a) - HT Industries - applicable to all areas of MESCOM
Details Existing tariff as per
Tariff Order 2015
Proposed by MESCOM
Demand Charges Rs.170 / kVA of billing
demand / month
Rs.170 / kVA of billing
demand / month
Energy Charges
(iii) For the first one
lakh units
(iv) For the
585 paise per unit
615 paise per unit
687 paise per unit
717 paise per unit
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxviii
balance units
Railway traction and Effluent Plants
Details Existing tariff as per Tariff
Order 2015
Proposed by MESCOM
Demand Charges Rs.180 / kVA at billing
demand / month
Rs.180 / kVA of billing
demand / month
Energy Charges 555 paise per unit for all the
units
657 paise per unit for all
the units
Existing ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- ) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Commission’s Decisions:
Approved Tariff for HT – 2 (a)
The Commission approves the tariff for HT 2(a) category as below:
Applicable to all areas of MESCOM
Details Approved Tariff
Demand Charges Rs.180/ kVA of billing demand / month
Energy Charges
For the first one lakh units 620 paise/ unit
For the balance units 660 paise/ unit
Railway Traction & Effluent Treatment Plants
Details Tariff approved by the Commission
Demand Charges Rs.190 / kVA of billing demand / month
Energy Charges Rs.590 paise / unit for all the units
cxxxix
10. HT-2 (b) HT Commercial
MESCOM’s Proposal:
Existing and proposed tariff are as given below:
HT – 2 (b)-HT Commercial - Applicable to all areas of MESCOM
Details Existing tariff as per Tariff
Order 2015
Proposed by MESCOM
Demand Charges Rs.190 / kVA of billing
demand / month
Rs.190 / kVA of billing
demand / month
Energy Charges
(i) For the first two
lakh units
735 paise per unit
837paise per unit
(ii)For the balance
units
765 paise per unit 867 paise per unit
Commission’s Decision
The Commission approves the following tariff for HT 2 (b) consumers:
Approved tariff for HT – 2 (b) - HT Commercial
Applicable to all areas of MESCOM
Details Tariff approved by the Commission
Demand Charges Rs. 200 / kVA of billing demand / month
Energy Charges
(i) For the first two lakh units 785 paise per unit
(ii) For the balance units 815 paise per unit
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.
11. HT – 2 (c) – Applicable to Hospitals and Educational Institutions:
Existing and proposed Tariff are given below:
cxl
HT – 2 (c) (i) Applicable to Government Hospitals & Hospitals run by
Charitable Institutions & ESI Hospitals
and
Universities, Educational Institutions belonging to Government, Local
Bodies and Aided Institutions and Hostels of all Educational Institutions
Details Existing Tariff as per
Tariff Order 2015
Proposed by
MESCOM
Demand Charges Rs.170 / kVA of billing
demand / month
Rs.170 / kVA of billing
demand / month
Energy Charges
(i) For the first one lakh units 560 paise per unit 662 paise per unit
(ii) For the balance units 610 paise per unit 712 paise per unit
Existing and proposed tariff for HT – 2 (c) (ii)
Applicable to Hospitals/Educational Institutions
other than those covered under HT2(c) (i)
Details Existing Tariff as per Tariff
Order 2015
Proposed by MESCOM
Demand Charges Rs.170 / kVA of billing
demand / month
Rs.170 / kVA of billing
demand / month
Energy Charges
(i) For the first one lakh units 660 paise per unit 762 paise per unit
(ii) For the balance units 710 paise per unit 812 paise per unit
Commission’s Decision:
The Commission approves the following tariff for HT2(c) consumers.
Approved tariff for HT – 2 (c) (i) Applicable to Government Hospitals, Hospitals run by Charitable Institutions, ESI
Hospitals:
and
Universities and Educational Institutions belonging to Government and Local Bodies,
Aided Educational Institutions, and Hostels of all Educational Institutions
Details Tariff approved by the Commission
Demand Charges Rs. 180 / kVA of billing demand / month
Energy Charges
(i) For the first one lakh units 600 paise per unit
(ii) For the balance units 650 paise per unit
Approved tariff for HT – 2 (c) (ii) - Applicable to Hospitals and Educational Institutions
other than those covered under HT2(c) (i)
cxli
Details Tariff approved by the Commission
Demand Charges Rs.180 / kVA of billing demand / month
Energy Charges
(i) For the first one lakh units 700 paise per unit
(ii) For the balance units 750 paise per unit
Time of the Day Tariff:
Approved TOD Tariff to HT-2(a), HT- 2(b) and HT2(c)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- ) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 Paise per unit
12. HT-3(a) Lift Irrigation Schemes under Government Departments /
Government owned Corporations/ Lift Irrigation Schemes under Private
/Societies:
MESCOM’s Proposal:
The existing and proposed tariff for HT – 3 (a) –Lift Irrigation Schemes
are given below
HT 3(a) (i) Applicable to LI Schemes under Government Departments /
Government owned Corporations
Details Existing charges as per Tariff
Order 2015
Proposed charges by
MESCOM
Energy
Charges/
minimum
Charges
170 paise / unit
Subject to an annual minimum
of Rs.1000 per HP / annum
272 paise / unit
Subject to an annual
minimum of Rs. 1000
per HP / annum
HT 3(a) (ii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies fed
through
Express / Urban feeders
Details Existing Tariff as per Tariff
Order 2015
Proposed by MESCOM
Fixed charges Rs.30 / HP / Month of
sanctioned load
Rs.30 / HP / Month of
sanctioned load
Energy charges 170 paise / unit 272 paise / unit
HT 3(a) (iii) Applicable to Private LI Schemes and Lift Irrigation Societies
other than those covered under HT-3 (a) (ii)
cxlii
Details Existing Tariff as per Tariff
Order 2015
Proposed by MESCOM
Fixed Charges Rs.10 / HP / Month of
sanctioned load
Rs.10 / HP / Month of
sanctioned load
Energy Charges 170 paise / unit 272 paise / unit
Commission’s decision:
The Commission approves the following Tariff for HT-3(a) consumers:
Approved tariff for HT 3 (a) (i)
Applicable to LI schemes under Govt. Dept. / Govt. owned Corporations
Energy Charges /
Minimum Charges
200 paise/ unit
subject to an annual minimum of Rs.1120
per HP / annum
Approved tariff for HT 3 (a) (ii)
Applicable to Private Lift Irrigation Schemes and Lift Irrigation Societies fed
through express / urban feeders
Fixed Charges Rs.40 / HP / Month of sanctioned load
Energy Charges 200 paise / unit
Approved tariff for HT 3 (a) (iii)
Applicable to Private Lift Irrigation and Lift Irrigation Societies
other than those fed through express/ urban feeders
Fixed Charges Rs.20 / HP / Month of sanctioned load
Energy Charges 200 paise / unit
13. HT3 (b) Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, tea, Coconut & Arecanut
Plantations:
MESCOM’s Proposal:
The existing and the proposed tariff are given below:
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms, Private
Horticulture Nurseries, Coffee, tea, Coconut & Areca nut Plantations:
Details Existing Tariff as per Tariff
Order 2015
Proposed tariff by
MESCOM
Energy Charges / 370 paise / unit 472 paise / unit
cxliii
Minimum
Charges
subject to an annual
minimum of Rs. 1000 per HP
of sanctioned load
subject to an annual
minimum of Rs. 1000 per
HP of sanctioned load
Commission’s decision:
The Commission approves the tariff as indicated below:
Approved Tariff
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, tea, Rubber, Coconut & Arecanut
Plantations:
Details Approved Tariff
Energy Charges /
Minimum Charges
400 paise / unit
subject to an annual minimum
of Rs.1120 per HP of sanctioned
load
14. HT4- Residential Apartments/ Colonies:
MESCOM’s Proposal:
The existing and proposed tariff for this category are given below:
Existing and proposed tariff for HT – 4 - Residential Apartments/
Colonies
Applicable to all areas of MESCOM
Details Existing tariff as per Tariff
Order 2015
Proposed tariff by MESCOM
Demand Charges Rs.100 / kVA of billing
demand
Rs.100 / kVA of billing
demand
Energy Charges 550 paise per unit 652 Paise/ unit
Commission’s decision
The Commission approves the tariff for this category as indicated
below:
Approved tariff
HT – 4 Residential Apartments/ Colonies Applicable to all areas of
MESCOM
cxliv
Demand Charges Rs. 110 / kVA of billing demand
Energy Charges 585 Paise/ unit
15. TARIFF SCHEDULE HT-5
MESCOM’s Proposal:
The existing and proposed tariff for this category are given below:
HT – 5 – Temporary supply
67 HP and above: Existing as per Tariff Order
2015
Proposed
Fixed Charges /
Demand Charges
Rs.210/HP/month for the
entire sanction load /
contract demand
Rs.210/HP/month for the
entire sanction load /
contract demand
Energy Charge 900 paise / unit (weekly
minimum of Rs.160/- per
KW is not applicable)
1002 paise / unit (weekly
minimum of Rs. 160/- per
KW is not applicable)
Commission’s Decisions:
TARIFF SCHEDULE HT-5
As approved in the Commission’s Tariff Order, dated 02nd March 2015,
this tariff is applicable to 67 HP and above hoardings and
advertisement boards and construction power for industries but
excluding those category of consumers covered under HT2(b) Tariff
schedule availing power supply for construction power for irrigation,
power projects and Konkan railway projects and also applicable to
power supply availed on temporary basis with the contract demand of
67 HP and above of all categories.
Approved Tariff for HT – 5 – Temporary supply
67 HP and above: Approved Tariff
Fixed Charges /
Demand Charges
Rs. 220 /HP/month for the entire sanction load /
contract demand
Energy Charges 950 paise / unit
The Approved Tariff schedule for FY17 is enclosed in Annex IV of this
Order.
6.6 Other Issues
cxlv
6.6.1 Tariff for Green Power:
In order to encourage generation and use of green power in the State,
the Commission decides to continue the existing Green Tariff of 50
paise per unit as the additional tariff over and above the normal tariff
to be paid by HT-consumers, who opt for supply of green power from
out of the renewable energy procured by distribution utilities over and
above their Renewable Purchase Obligation (RPO).
6.6.2 Determination of wheeling charges for FY17:
MESCOM in their tariff petition have proposed Wheeling charges in
cash for HT network at 33 paise/unit and for LT network at 76 paise/unit
in addition to HT network technical loss at 4.36% and LT network
technical loss at 5.61%.
Further, MESCOM has requested the Commission not to allow banking
during the summer months, as the State is facing acute shortage of
energy and peak and that purchase of peak power costs 5 to 6 times
the average cost. As such MESCOM has proposed that excess energy
available for banking could be paid at 85% of the generic tariff or at
the cost determined by the Commission.
The Commission in its preliminary observations had requested MESCOM
to furnish necessary data in support of its proposal.
MESCOM in its replies has furnished the wheeled energy data pertaining to
few installations that have wheeled energy. The Commission notes that
MESCOM has only furnished data of wheeled energy and has not justified its
stand to show that banking has affected them financially or there are
technical constraints during summer months. As such the request of
MESCOM is not considered.
The approach of the Commission regarding wheeling & banking
charges is discussed in the following paragraphs:
cxlvi
The Commission has considered the approved ARR pertaining to
distribution wires business and has proceeded determining the
wheeling charges as detailed below:
6.6.3 Wheeling within MESCOM Area:
The allocation of the distribution network costs to HT and LT networks for
determining wheeling charges is done in the ratio of 30:70, as was
being done earlier. Based on the approved ARR for distribution
business, the wheeling charges to each voltage level is worked out as
under:
TABLE – 6.2
Wheeling Charges
Distribution ARR-Rs. Crs 341.87
Sales-MU 4611.84
Wheeling charges- paise/unit 74.13
Paise/unit
HT-network 22.24
LT-network 51.89
In addition to the above, the following technical losses are applicable
to all open access/wheeling transactions:
Loss allocation % loss
HT 4.36
LT 5.61 Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow
diagram furnished by MESCOM.
The actual wheeling charges payable (after rounding off) will depend
upon the point of injection & point of drawal as under:
paise/unit
Injection point
Drawal point
HT LT
HT 22[4.36%] 74[9.97%]
LT 74[9.97%] 52[5.61%]
Note: Figures in brackets are applicable loss
The wheeling charges as determined above are applicable to all the
open access or wheeling transactions for using the MESCOM network,
cxlvii
except for energy transmitted or wheeled from Renewable sources to
the consumers in the State.
6.6.4 WHEELING OF ENERGY USING TRANSMISSION NETWORK OR NETWORK OF
MORE THAN ONE LICENSEE
In case the wheeling of energy [other than RE sources wheeling to
consumers in the State] involves usage of Transmission network or
network of more than one licensee, the charges shall be as indicated
below:
i. If only transmission network is used, transmission charges
determined by the Commission shall be payable to the
Transmission Licensee.
ii. If the Transmission network and the ESCOMs’ network are used,
Transmission Charges shall be payable to the Transmission
Licensee. Wheeling Charges of the ESCOM where the power is
drawn shall be shared equally among the ESCOMs whose
networks are used.
Illustration:
If a transaction involves transmission network &MESCOM’s network and
100 units is injected, then at the drawal point the consumer is entitled
for 86.90 units, after accounting for Transmission loss of 3.47%
&MESCOM technical loss of 9.97%.
The Transmission charge in cash as determined in the Transmission Tariff
order shall be payable to KPTCL & Wheeling charge of 74 paise per
unit shall be payable to MESCOM. In case more than one ESCOM is
involved the above 74 paise shall be shared by all ESCOMs involved.
iii. If ESCOMs’ network only is used, the Wheeling Charges of the
ESCOM where the power is drawn is payable and shall be
shared equally among the ESCOMs whose networks are used.
Illustration:
cxlviii
If a transaction involves injection to BESCOM’s network & drawal at
MESCOM’s network, and 100 units is injected, then at the drawal point
the consumer is entitled for 90.03 units, after accounting MESCOM’s
technical loss of 9.97%.
The Wheeling charge of 74 paise per unit applicable to MESCOM shall
be equally shared between MESCOM & 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.
6.6.6 CHARGES FOR WHEELING ENERGY BY RE SOURCS WHEELING ENERGY
FROM THE STATE TO A CONSUMER/OTHERS OUTSIDE THE STATE AND FOR
THOSE OPTING FOR RENEWABLE ENERGY CERTIFICATE[REC]
In case the renewable energy is wheeled from the State to a consumer
or others outside the State, the normal wheeling charges as
determined in para 6.6.1 and 6.6.2 of this order shall be applicable. For
Captive RE generators including solar power projects opting for RECs,
the wheeling and banking charges as specified in the orders issued by
the Commission from time to time shall be applicable.
6.7 Other tariff related issues:
i) Cross subsidy surcharge:
MESCOM in its tariff petition has stated that based on the methodology
adopted by the Commission in the Tariff Order, 2015 it has worked out
the CSS as indicated below:
cxlix
Paise/unit
Voltage
Level
HT-1 HT-2a HT-2b HT-4
66KV &
above
20 181 310 114
HT level-
11KV/33KV
2 162 291 95
The determination of cross subsidy surcharge by the Commission is
discussed in the following paragraphs:-
The Commission in its MYT Regulations has specified the methodology
for calculating the cross subsidy surcharge. Based on the above
methodology, the category wise cross subsidy will be as indicated
below:
Particulars
HT-1
Water
Supply
HT-2a
Industries
HT-2b
Commercial
HT-2
(C)
HT3 (a)
Lift
Irrigation
HT3 (b)
Irrigation &
Agricultural
Farms
HT-4
Residential
Apartments
HT5
Temporary
Average Tariff-
Paise/unit 498.81 721.70 902.87 735.25 181.60 398.01 625.67 1509.97
Cost of supply
at 5% margin
@ 66 kV and
above level
565.04 565.04 565.04 565.04 565.04 565.04 565.04 565.04
Cross subsidy
surcharge
paise/unit @ 66
kV & above
level
-66.23 156.66 337.83 170.21 -383.44 -167.03 60.63 944.93
Cost of supply
at 5% margin
@ HT level
607.04 607.04 607.04 607.04 607.04 607.04 607.04 607.04
Cross subsidy
surcharge
paise/unit @ HT
level
-108.22 114.66 295.83 128.21 -425.44 -209.03 18.63 902.94
For the categories where the surcharge is negative, the surcharge is
made zero at the respective voltage level. For the remaining
categories, the Commission decides to determine the surcharge at
75% (instead of the 80% considered in its tariff order dated 02.03.2015)
of the cross subsidy amount as worked out above, as the cross subsidy
cl
surcharge has to be gradually reduced. Thus, the cross subsidy
surcharge is determined as under rounding off to nearest paise:
Paise/unit
Voltage
level
HT-1 HT-2a HT-2b HT-2c HT-3a HT-3b HT-4 HT-5
66 kV &
above
0 118 253 128 0 0 45 709
HT level-11
kV/33kV
0 86 222 96 0 0 14 677
The cross subsidy surcharge determined in this order shall be
applicable to all open access/wheeling transactions in the area
coming under MESCOM. However, the above CSS shall not be
applicable to captive generating plant for carrying electricity to the
destination of his own use and for those renewable energy generators
who have been exempted from CSS by the specific orders of the
Commission.
The Commission directs the Licensees to account the transactions
under open access separately. Further, the Commission directs the
Licensees to carry forward the amount realized under Open
Access/wheeling to the next ERC, as it is an additional income to the
Licensees.
ii) Rebate for use of Solar Water Heater
The Commission has decided to retain the existing rebate of 50 paise
per unit subject to a maximum of Rs.50 per installation per month for
use of solar water heaters.
iii) Prompt payment incentive:
The Commission had approved a prompt payment incentive (i) in all
cases of payment through ECS and (ii) in the case of monthly bill
exceeding Rs.1,00,000/- (Rs. One lakh). The earlier rate of incentive was
0.25 % of the bill amount. The Commission decides to continue the
same.
cli
iv) Relief to 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. The Commission, in its Tariff Order 2002, had accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. However, in view of issue of the G.O No.CI2 BIF 2010,
dated 21.10.2010, the Commission has accorded approval to the
ESCOMs for implementation of the reliefs extended to sick industrial
units for their revival / rehabilitation on the basis of the orders issued by
the Commissioner for Industrial Development and Director of Industries
& Commerce, Government of Karnataka.
v) Power Factor:
The Commission in its previous order had retained the PF threshold limit
and surcharge, both for LT and HT installations at the levels existing as in
the Tariff Order 2005. The Commission has decided to continue the
same in the present order as indicated below:
LT Category (covered under LT-3, LT-4, LT-5 & LT-6 where motive power
is involved): 0.85
HT Category: 0.90
vi) Rounding off of KW / HP:
In the Tariff Order 2005, the Commission had approved rounding off of
fractions of KW / HP to the nearest quarter KW / HP for the purpose of
billing and the minimum billing being for 1 KW / 1HP in respect of all the
categories of LT installations including IP sets. This shall continue to be
followed. In the case of street light installations, fractions of KW shall be
clii
rounded off to the nearest quarter KW for the purpose of billing and
the minimum billing shall be for a quarter KW.
vii) Interest on delayed payment of bills by consumers:
The Commission, in its previous Order had approved interest on
delayed payment of bills at 12% per annum. The Commission decides
to continue the same in this Order also.
viii)Security Deposit (3 MMD/ 2 MMD):
The Commission had issued K.E.R.C. (Security Deposit) Regulations,
2007 on 01.10.2007 and the same has been notified in the Official
Gazette on 11.10.2007. The payment of security deposit shall be
regulated accordingly, pending orders of the Hon’ble High Court in
WP Nos18215/2007.
ix) Mode of Payment by consumers:
The Commission, in its previous Order had approved revenue payment
in cash/cheque/ DD of amounts up to and inclusive of Rs.10,000/-,
and payment of amounts above Rs.10,000 to be made only through
cheque. The consumers can also make payment of power bills
through Electronic Clearing System((ECS)/ Credit card/ online E-
payment up to the limit prescribed by the RBI.
BESCOM in its application had proposed to consider the collection of
power supply bills above one lakh rupees, through RTGS/NEFT. The
Commission has examined the request of BESCOM, and decides to
approve the payment of power supply bills above one lakh rupees,
through RTGS/NEFT, at the option of the Consumer for all ESCOMs.
6.8 Cross Subsidy Levels for FY17:
The Hon’ble Appellate Tribunal for Electricity (ATE), in its order dated 8th
October, 2014, in Appeal No.42 of 2014, has directed the Commission
to clearly indicate the variation of anticipated category wise average
cliii
revenue realization with respect to overall average cost of supply in
order to implement the requirement of the Tariff Policy that tariffs are
within ±20% of the average cost of supply, is met in the tariff orders
being passed in the future. It has further directed the Commission to
also indicate category-wise cross subsidy with reference to voltage
wise cost of supply so as to show the cross subsidies transparently.
In the light of the above directions, the variations of the anticipated
category-wise average realization with respect to the overall average
cost of supply and also with respect to the voltage-wise cost of supply
of MESCOM and the cross subsidy thereon, is Indicated in ANNEXURE -
III of this Order. It is the Commission’s endeavour to reduce the cross
subsidies gradually as per the Tariff policy.
6.9 Effect of Revised Tariff:
As per the KERC (Tariff) Regulations 2000, read with the MYT Regulations
2006, the ESCOMs have to file their applications for ERC/Tariff before
120 days of the close of each financial year in the control period. The
Commission observes that the ESCOMs have filed their applications for
revision of tariff on 15th December, 2015 (within the time extended by
the Commission). As the tariff revision is effective from 1st April, 2016
onwards, ESCOMs would be recovering revenue for eleven months of
the Financial Year.
A statement indicating the proposed revenue and approved revenue
is enclosed vide Annexure – III and detailed tariff schedule is enclosed
vide Annexure – IV
6.10 Summary of the Tariff Order:
The Commission has approved an ARR of Rs.2773.95 Crores for FY17
which includes the surplus for FY15 of Rs.144.52 Crores and the
Regulatory Asset of Rs.92.25 Crores, with a total gap in revenue of
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Rs.220.83 Crores (as against MESCOM’s proposed ARR of Rs.3090.52
Crores).
The Commission has allowed recovery of entire gap in revenue with
additional revenue of Rs.220.83 Crores on Tariff Revision as against
the additional revenue of Rs.483.00 Crores proposed by MESCOM for
FY17.
MESCOM had proposed an increase of 102 paise per unit for all
categories of consumers resulting in average increase in retail supply
tariff by 18.52%. The Commission has approved an average increase
of 48 paise per unit in the tariff. The average increase in retail supply
tariff of all the consumers for FY17 is 9%.
The Commission has allowed for recovery of additional
revenue partly by increase in fixed charges ranging from Rs.5
per KW/HP/KVA to Rs.10 per KW/HP/KVA.
The Commission has allowed for recovery of additional
revenue partly by increase in the energy charges in the range
of 15 paise per unit to 50 paise per unit.
The increase in energy charge for commercial category is 20
paise per unit, for LT Industries category is in the range of 15
paise per unit to 30 paise per unit and for other categories is in
the range of 20 paise per unit to 50 paise per unit.
Time of the day tariff which was made mandatory in the previous
Tariff Order for installations under HT2 (a), HT2(b) and HT2(c) with
contract demand of 500KVA and above is continued in this Order.
clv
Green tariff of additional 50 paise per unit over and above
the normal tariff which was introduced in the previous Tariff
Order for HT industries and HT commercial consumers at their
option, to promote purchase of renewable energy from
ESCOMs, is continued in this Order.
As in the previous Orders, the Commission has continued to
provide a separate fund for facilitating better Consumer
Relations /Consumer Education Programmes.
The cap on cost of short-term power purchase to meet
shortfall in supply is continued at Rs.4.50 per unit
clvi
6.11 Commission’s 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
MESCOM 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.
Sd/-
(M.K.Shankaralinge Gowda)
Chairman
Sd/-
(H.D.Arun Kumar)
Member
Sd/-
(D.B.Manival Raju)
Member
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APPENDIX
ISSUE OF NEW DIRECTIVES AND
REVIEW OF COMPLIANCE OF DIRECTIVES ISSUED BY THE
COMMISSION
1. The following new directive is issued by the Commission
Directive on Energy Conservation:
In view of the increase in cost of electricity and the constraints in
capacity additions to generate additional power to meet the
increase in demand, it is imperative that all the consumers use
energy efficient equipment and adopt energy conservation
measures, in their daily activities to conserve electricity. To
achieve this, the Commission has notified the Demand Side
Management Regulations, 2015, on 28.07.2015. As per these
Regulations, the ESCOMs have to implement Demand Side
Management (DSM) and Energy Efficiency (EE) programmes in
their jurisdiction, to mitigate peak and energy shortages by
adoption of conservation technologies for more efficient use of
electricity. The objective is to flatten the load curve by reducing
the loads in their respective areas leading to reduction in system
peak load.
The Commission has noted that the ESCOMs have already
initiated the DELP (Domestic Efficient Lighting programme) for
supplying/distributing 9 watts capacity LED bulbs to the
consumers at a subsidised price. This initiative will certainly help
clviii
conserve substantial quantum of energy used for domestic
lighting, provided all the consumers accept and adopt it.
In addition to the above initiative, the Commission notes that
there is a scope for energy conservation in use of equipment like
Air Conditioners, Fans, Refrigerators etc., in domestic/
commercial and industrial installations. Also, use of LED
lamps/energy efficient lamps like induction lamps in all the
streetlight installations including high mast street light installations
should be considered so as to make energy conservation
measures more broad based across wider range of consumers.
Therefore, the Commission hereby directs the ESCOMs to service
all the new installations only after ensuring that the BEE *****
(Bureau of Energy Efficiency five star rating) rated Air
Conditioners, Fans, Refrigerators, etc., are being installed in the
applicant consumers’ premises.
Similarly, all new streetlight/high mast installations including
extensions made to the existing streetlight circuits shall be
serviced only with LED lamps/energy efficient lamps like
induction lamps.
Further, the Commission directs the ESCOMs to take up
programmes to educate all the existing domestic, commercial
and industrial consumers, through media and distribution of
pamphlets along with monthly bills, regarding the benefits of
using five star rated equipment certified by the Bureau of Energy
Efficiency in reduction of their monthly electricity bills and
conservation of precious energy.
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2. Review of Compliance of Existing Directives:
The Commission had in its earlier Tariff Orders and other communications
issued several directives for compliance by the MESCOM. While
reproducing such directives, the compliance of the directives as reported
by the MESCOM is analysed in this Section.
i. Directive on implementation of Standards of Performance (SoP):
The Directive was:
“The MESCOM is directed to strictly implement the specified Standards
of Performance while rendering services related to supply of power as
per the KERC (Licensee’s Standards of Performance) Regulations, 2004.
Further, the MESCOM is directed to display prominently in Kannada the
details of various critical services such as replacing the failed
transformers, attending to fuse off calls / line breakdown complaints,
arranging new services, change of faulty energy meters, reconnection
of power supply, etc., rendered by it as per Schedule-1 of the KERC
(Licensee’s Standards of Performance) Regulations, 2004 and
Annexure-1 of the KERC (Consumer Complaints Handling Procedure)
Regulations, 2004, on the notice boards in all the O & M sections and O
& M sub-divisions in its jurisdiction for the information of consumers as
per the following format.
Nature of
Service
Standards of
performance
(indicative
minimum time
limit for
rendering
services)
Primary
responsibility
centres where
to lodge
complaint
Next higher
Authority
Amount
payable to
affected
consumer
The MESCOM shall implement the above directive within one month
from the date of the order and report compliance to the Commission
regarding the implementation of the directives.”
clx
Compliance by the MESCOM:
As per the directive, the MESCOM has implemented the specified
Standards of Performance while rendering the services related to
supply of power as per the KERC (Licensee’s Standard of Performance)
Regulations, 2004. The MESCOM has taken initiative for display of the
details in Kannada of various critical services such as replacing the
failed transformers, attending to fuse off call/line breakdown
complaints, arranging new services, change of faulty meters,
reconnection of power supply etc., rendered as per the Schedule-1 of
the KERC(Licensee’s Standards of Performance) Regulations, 2004, and
Annexure-1 of the KERC(Consumer Complaints Handling Procedure)
Regulations, 2004, on the notice boards in all the 199 O&M sections
and 52 sub-divisions.
The MESCOM has been furnishing quarterly reports to the Commission
at the end of every quarter as per the directive.
Commission’s Views
The Commission notes that the MESCOM has complied with the
directive by displaying the details of specified Standards of
Performance on the notice boards in all its O & M section and
subdivision offices for the information of the consumers and public. The
Commission directs the MESCOM to adhere to the specified standards
of performance while rendering services to ensure that consumer
complaints are attended to in a time bound manner.
The Commission reiterates its directive to the MESCOM to continue to
strictly implement the specified Standards of Performance while
rendering services related to supply of power as per the KERC
(Licensee’s Standards of Performance) Regulations, 2004.
ii. Directive on use of safety gear by linemen:
clxi
The Directive issued was:
“The Commission directs the MESCOM to ensure that all the linemen in
its jurisdiction are provided with proper and adequate safety gear and
also ensure that the linemen use such safety gear provided while
working on the network. The MESCOM should sensitise the linemen
about the need for adoption of safety aspects in their work through
suitably designed training and awareness programmes. The MESCOM is
also directed to device suitable reporting system on the use of safety
gear and mandate supervisory/higher officers to regularly cross check
the compliance by the linemen and take disciplinary action on the
concerned if violations are noticed. The MESCOM shall implement this
directive within one month from the date of this order and submit
compliance report to the Commission.”
clxii
Compliance by the MESCOM:
As per the Directive, the MESCOM has provided adequate safety
gears to all the line maintenance staff duly procuring necessary safety
materials/equipment like Earthing rods, Helmets, Hand gloves, Rain
coats, Safety belts, etc., and strict instructions were issued to field
officers to regularly cross check the compliance by the linemen and to
take disciplinary action on the concerned if violations are noticed. The
MESCOM has also taken measures to sensitize the linemen about the
need for adoption of safety aspects in their work through suitably
designed training and awareness programmes through the HRD
regularly.
As regards putting in place a suitable reporting system on the use of
safety gear and to mandate supervisory/higher officers to regularly
cross check the compliance by linemen and to take disciplinary action
on the concerned if violations are noticed, the MESCOM has been
issuing suitable directions to the field officers.
Commission’s Views
The Commission notes that the MESCOM has provided safety gadgets
to its linemen . The MESCOM shall also take action to provide additional
safety tools to linemen to facilitate them to carry out their work safely. It
is important that the MESCOM should continue to focus on safety
aspects to reduce the electrical accidents occurring 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 important
that the frequency of imparting training to linemen should be increased
so that adherence to safety aspects becomes part their routine.
The Commission reiterates its directive that the MESCOM 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
clxiii
to them while working on the network. The compliance in this regard
shall be submitted once in a quarter to the Commission regularly.
iii. Directive on providing Timer Switches to Streetlights by the
ESCOMs
The Commission directs the MESCOM to install timer switches using own
funds to all the streetlight installations in its jurisdiction wherever the
local bodies have not provided the same and later recover the cost
from them. The MESCOM shall also take up periodical inspection of
timer switches installed and ensure that they are in working conditions.
They shall undertake necessary repairs / replacement work, if required
and later recover the cost from local bodies. The compliance
regarding the progress of installation of timer switches to streetlight
installations shall be reported to the Commission.
Compliance by the MESCOM:
The MESCOM has issued directions to field officers to provide timer
switches for streetlight installations with due concurrence of the local
bodies. In this regard, concerned field officers have requested the
local bodies seeking their concurrence to bear the cost of providing
timer switches and repair /replacement of switches under
maintenance. Further, letters have been addressed to the Urban
Development Department and Rural Development & Panchayatraj
Department to bear the cost of replacement of timer switches in their
jurisdiction. The concurrence from these departments is awaited. After
receiving the concurrence from these departments, the work of
installing the timer switches will be taken up by the MESCOM.
Commission’s Views
The Commission notes that the MESCOM so far has not installed timer
switches to streetlight installations in its jurisdiction. The MESCOM needs
to take up installation of timer switches in its jurisdiction for ensuring
clxiv
prompt control by switching “ON” & “OFF” at scheduled time and
avoidance of wastage of electricity.
The Commission reiterates that the streetlight installations should be
provided with timer switches for enabling them to be automatically
switched on only during the scheduled time. This measure would not
only save significant quantum of energy that is currently wasted
because of inefficient and unreliable manual operation of the switches
which allow them to be lit unnecessarily even during day time, but also
ensure that streetlights are lit during the scheduled dark hours when
the general public require them. As directed earlier the MESCOM
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.
Further, providing timer switches to streetlight installations in the
MESCOM also under “Nagara Jyothi” programme through M/s EESL
needs to be earnestly pursued on the lines of the BESCOM, to ensure
covering of all street light installations in its jurisdiction. The progress
/status in this regard shall be reported to the Commission on a quarterly
basis regularly.
The Commission reiterates its directive to the MESCOM that the
streetlight installations should be provided with timer switches for
ensuring prompt control and avoidance of wastage of electricity.
The Commission further directs the MESCOM that henceforth, the new
streetlight installations and any extension/modification to be carried
out to the existing streetlight installations shall be serviced only with
timer switches.
iv. Directive on load shedding:
clxv
The Commission had directed that:
1. Load shedding required for planned maintenance of transmission /
distribution networks should be notified in daily newspapers at least
24 hours in advance for the information of consumers.
2. The ESCOMs shall on a daily basis estimate the hourly requirement
of power for each sub-station in their jurisdiction based on the
seasonal conditions and other factors affecting demand.
3. Any likelihood of shortfall in the availability during the course of the
day should be anticipated and the quantum of load shedding
should be estimated in advance. Specific sub-stations and feeders
should be identified for load shedding for the minimum required
period with due intimation to the concerned sub-divisions and sub-
stations.
4. The likelihood of interruption in power supply with time and duration
of such interruption may be intimated to consumers through SMS
and other means.
5. Where load shedding has to be resorted to due to unforeseen
reduction in the availability of power, or for other reasons,
consumers may be informed of the likely time of restoration of
supply through SMS and other means.
6. Load shedding should be carried out in different sub-stations /
feeders to avoid frequent load shedding affecting the same sub-
stations / feeders.
7. The ESCOMs should review the availability of power with respect to
the projected demand for every month in the last week of the
previous month and forecast any unavoidable load shedding after
consulting other ESCOMs in the State about the possibility of inter-
ESCOM load adjustment during the month.
8. The ESCOMs shall submit to KERC their projections of availability and
demand for power and any unavoidable load shedding for every
succeeding month in the last week of the preceding month for
approval.
clxvi
9. The ESCOMs shall also propose specific measures for minimizing
load shedding by spot purchase of power in the power exchanges
or bridging the gap by other means.
10. The ESCOMs shall submit to the Commission sub-station wise and
feeder wise data on interruptions in power supply every month
before the 5th day of the succeeding month.
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 to review the
compliance of directions on a monthly basis for appropriate orders.
Compliance by the MESCOM:
It is submitted that, in the MESCOM, before imposing scheduled load
shedding for planned maintenance of distribution network, prior
notification is being given in daily newspapers for the information of
the consumers power supply on three phase and single phase is being
arranged in all the districts of the MESCOM as per the Government
Order. However, unscheduled load shedding is resorted to only when
the power supply demand and the availability mismatches due to loss
of generation or major outages of transmission lines and also as per the
instructions of State Load Dispatch Centre to maintain grid security and
frequency.
Commission’s Views:
The Commission observes that the MESCOM is not submitting its
projections of availability and demand for power and any
unavoidable load shedding for every succeeding month in the last
week of the preceding month to the Commission regularly. The
MESCOM shall henceforth submit the same regularly to the
Commission. The Commission also notes that the MESCOM has not
taken any action for providing information to the consumers through
SMSes regarding the time and duration of interruptions due to any
clxvii
reasons. This has to be expedited as the consumers need to be
informed through SMSes in addition to notification in news-papers
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 carried out on rotation basis
to avoid inconvenience to consumers/public.
The Commission reiterates that the MESCOM shall comply with the
directive on load shedding and submit monthly compliance reports to
the Commission regularly.
v. Directive on Establishing a 24x7 Fully Equipped Centralized
Consumer Service Center for Redressal of Consumer Complaints:
The directive was as below:
“ The MESCOM is directed to put in place a 24x7 fully equipped
Centralized Consumer Service Center at its Headquarters with
state of the art facility /system for receiving consumer complaints
and monitoring their redressal so that electricity consumers in its area of
supply are able to seek and obtain timely and efficient services /
redressal in the matter of their grievances. Such a Service Center shall
have adequate number of desk operators in each shift so that
consumers across the jurisdiction of MESCOM are able to lodge their
complaints directly with this Centre.
Every complaint shall be received on a helpline telephone number by
the desk operator and registered with a docket number which shall be
intimated to the Consumer. Thereafter, the complaints shall be
transferred online / communicated to the concerned field staff for
resolving the same. The concerned O&M / local service station staff
shall visit the complainant’s premises / fault location at the earliest to
clxviii
attend to the complaints and then inform the Centralized Service
Centre that the complaint is attended. In turn, the call centre shall call
the complainant and confirm with him whether the complaint has
been attended to. The complaints shall be closed only after
receiving consumer’s / complainant’s confirmation. Such a system
should also generate daily reports indicating the number / nature of
complaints received, complaints attended, complaints pending and
reasons for not attending to the complaints.
The MESCOM shall publish the details of the complaint handling
procedure / Mechanism with contact numbers in the local media
periodically for the information of the consumers. The compliance of
the action taken in the matter shall be submitted to the Commission
within two months from the date of this Order.
Further, the Commission directs the MESCOM to establish/strengthen
24x7 service stations, equipping them with separate vehicles &
adequate line crew, safety kits and maintenance materials at all its
sub-divisions including rural areas for effective redressal of consumer
complaints.
The Commission also directs the MESCOM to hold Consumer
Interaction Meetings in each O&M sub-division once every two
months according to a published schedule and invite consumers in
advance to participate in such meetings to sort out their grievances.
Such meetings shall be chaired by officers of the level of
Superintending Engineers and attended by the concerned divisional
and sub-divisional Engineers. The MESCOM shall submit compliance
of the same to the Commission once in a quarter.”
Compliance by the MESCOM:
The MESCOM has established a 24X7 Centralized Consumer Service
Centre at Mangaluru and the complaints are being received from all
the consumers of MESCOM at this Customer Care Centre only.
clxix
The consumers are dialing short code number “1912” to lodge their
complaints related to electricity. For better utilization of services of
Customer Care Centre and resolve the consumers’ complaints, the
MESCOM has taken appropriate measures to popularize the same
through local newspapers and local TV channels. The MESCOM has
been focusing on improving the consumer services by reducing the
consumer complaint downtime. In this regard, suitable instructions are
being issued to the field officers to attend to the complaints efficiently
in order to avoid deliberate or unreasonable delay.
Consumer interaction meetings are being regularly conducted at
subdivision levels under the chairmanship of the Superintending
Engineer of respective O&M Circle. Also, wide publicity is being given
in advance on conduction of consumer interaction meetings through
leading newspapers and local announcements. The MESCOM has
conducted 66 consumer interaction meetings at the subdivisions
during the period from April to November, 2015.
The MESCOM also has conducted interaction meetings with HT
consumers and Independent Power Producers during the month of
November, 2015, to resolve the grievances of HT
consumers/Generators.
Further, the MESCOM has already established 32 service stations and
provided all the infrastructural requirements along with men, material
and vehicle to redress the consumer complaints. The MESCOM has
sanctioned service stations with men, material and vehicles to the
balance 24 subdivisions. Providing manpower and hiring of vehicles is
in progress for extending better services to the consumers.
Commission’s Views:
The Commission notes that the MESCOM has taken certain measures
for effective redressal of consumer complaints. The MESCOM is
clxx
directed to continue to focus on improving the consumer services and
further reduce the consumer complaint downtime to ensure prompt
services to them. The MESCOM should ensure prompt response by its
officials to consumer complaints about interruptions in power supply
due to breakdown of lines/equipment, replacement of faulty
transformers etc. The MESCOM should sensitize its field staff in this
regard.
The MESCOM shall continue to ensure that the higher officers are
present in such interaction meetings at the subdivisions to effectively
redress the grievances of the consumers. The MESCOM shall also direct
sub-division officers to extend personal invitation in writing or through
telephone to some select consumers/consumer groups to every such
meeting so that more number of them participate and resolve their
grievances.
Further, the Commission also notes that the MESCOM has not complied
with the direction of video graphing the proceedings of interaction
meetings and hence, directs that all such meetings shall be video
graphed and the same also to be uploaded on its website for the
information consumers.
The Commission reiterates its directive to the MESCOM to publish the
complaint handling procedures / contact number of the Centralized
Consumer Service Centre regularly in the local media and other
modes periodically for the information of public and ensure that all the
complaints of consumers are registered only through the centralized
consumer service centre for proper monitoring of complaints
registered. The MESCOM is also directed to expedite establishing of
service centers in the balance 24 subdivisions at the earliest to
effectively deal with consumer complaints. The compliance of the
same shall be submitted to the Commission once in a quarter regularly.
clxxi
vi. Directive on Energy Audit:
The Commission had directed the MESCOM to prepare a metering
plan for energy audit to measure the energy received in each of the
interface points and to account for the energy sales. The Commission
had also directed the MESCOM to conduct energy audit and chalk
out an action plan to reduce distribution losses to a maximum of 15
per cent wherever it was above this level in towns/ cities having a
population of over 50,000.
The Commission had earlier directed all the ESCOMs to complete
installation of meters at the DTCs by 31st December, 2010. In this
regard, ESCOMs were required to furnish to the Commission the
following information on a monthly basis:
a) Number of DTCs existing in the Company.
b) Number of DTCs already metered.
c) Number of DTCs yet to be metered.
d) Time bound monthly programme for completion of work.
Compliance by the MESCOM:
As a part of the Company strategy to reduce technical and
commercial losses, the MESCOM is undertaking energy audit at division
level and feeder level. Earlier DTC wise energy audit was also carried
out for selected towns. However, the same could not be continued
due to the introduction of R-APDRP project where the issues such as
GIS mapping and consumer indexing are yet to be resolved, as GIS
survey of 6 towns is in progress and yet to be completed.
Adding to the above, the MESCOM has also issued work award for
metering of about 27,300 unmetered DTCs with automatic meter
reading protocols. The implementation time line as per the awarded
contact is one year. Hence, the MESCOM is emphasizing the metering
clxxii
of DTCs for the feeders which are having the loss levels above 15 per
cent consistently to take up the energy audit on top priority and in
phased manner.
Further, intensive energy audit is also being conducted at the
selected cities / towns. As per the directions of the Commission, the
distribution losses in respect of the selected six cities namely
Mangalore, Udupi, Shivamogga, Bhadravathi, Sagar and Chikmagalur
are being continuously monitored. In the FY15, the loss levels in six
cities are within 10 per cent.
Further, for rigorous energy auditing, the MESCOM has selected 16
major taluk head quarter towns. Of the total 22 towns, the energy
audit is taken up, Loss levels in 19 towns has been brought within 10 per
cent.
Status of distribution loss in the selected cities / towns in the FY15 and
up to July, 2015, is as below:
Sl.No. City/Town FY15 FY 16 (up to
July15)
1 Mangalore 4.36 4.80
2 Udupi 5.45 3.76
3 Shivamogga 7.57 8.33
4 Bhadravathi 7.76 8.88
5 Sagar 9.35 8.63
6 Chikmagaluru 10.63 9.47
7 Puttur 5.25 4.96
8 Bantwal 12.43 13.05
9 Shikaripura 7.18 12.99
10 Kadur 10.74 9.33
11 Tarikere 7.92 5.80
12 Beltangady 4.36 4.06
13 Sullia 3.62 2.17
14 Kundapura 5.67 6.46
15 Karkala 5.68 5.67
16 Soraba 6.86 11.50
17 Hosnagar 6.17 6.15
18 Thirthahalli 5.59 6.02
19 Mudigere 3.48 5.95
20 Koppa 4.58 4.46
21 Sringeri 4.05 5.00
22 NR Pura 4.71 4.33
clxxiii
Commission’s Views:
The Commission notes that the MESCOM is not submitting regularly the
monthly analysis of energy audit conducted in cities / towns. The
MESCOM is directed to submit the energy audit reports regularly to the
Commission. The MESCOM shall initiate measures to bring down the
loss levels further downwards in respect of Bantwal, Shikaripur, Soraba
and Kadur towns where the losses are reported as more than 10 per
cent and compliance regarding the specific remedial measures
initiated to reduce the losses shall be submitted to the Commission
every month regularly.
Further, the Commission notes that the MESCOM has not taken up DTC
wise energy audit in spite of providing meters to significant number of
DTCs. Hence, the MESCOM is directed to take up energy audit of DTCs
for which meters have already been installed and also initiate
remedial measures for reducing distribution losses wherever they are
above the targeted level.
The MESCOM shall also expedite metering of balance DTCs and
complete it early so as to take up DTC wise energy audit and to initiate
remedial measures for reducing distribution losses wherever they are
above the targeted level. The compliance in respect of DTC wise
energy audit conducted with analysis and the remedial action
initiated to reduce loss levels shall be submitted every month regularly
to the Commission.
Further, the MESCOM 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.
vii. Directive on Implementation of HVDS:
clxxiv
In view of the obvious benefits in the introduction of HVDS in reducing
distribution losses, the Commission had directed MESCOM to
implement High Voltage Distribution System in at least one O&M
division in a rural area in its jurisdiction by utilizing the capex provision
allowed in the ARR for the year.
Compliance by the MESCOM:
As per the directive of the Commission and in accordance with the
GoK Order No: EN 53 PSR 2013, Bangalore, dated: 03.10.2013, Kasaba
Hobli in Kadur sub-division was selected for implementation of HVDS. It
is proposed to replace each 63 KVA DTC by 2 numbers of 25 KVA DTCs
and each 100 KVA DTC by 5 numbers of 25 KVA DTCs. Hence, the
proposal covers replacement of 249 numbers of 63 KVA and 79
numbers of 100KVA DTCs by 1,142 numbers of 25 KVA DTCs involving 6
feeders at a cost of Rs.26 Crores.
As regards submission of feedback to the Commission on viability of
implementation of HVDS scheme, the MESCOM has conducted the
Techno Economical Analysis and it was observed that cost of the
project works out to be on the higher side.
Further, as a practice of adoption of high voltage distribution system,
higher capacity distribution transformers are being replaced by smaller
capacity transformers duly ensuring proper load balancing which also
results in improving HT/LT ratio.
The physical progress achieved in respect of replacement of
transformers during 2014-15 and 2015-16 (up to December, 15) is given
below:
clxxv
Commission’s Views:
The Commission notes that there is no progress in implementation of
HVDS in in Kasaba Hobli of Kadur subdivision except replacement of
some 100 /63 kVA transformers by 25 kVA transformers. Further, the
Commission with a view to minimize the cost has issued revised
guidelines for implementation of HVDS in sub-divisions/feeders having
highest distribution losses, so that a higher loss reduction could be
achieved on implementation of HVDS at a reasonable cost.
The MESCOM is directed to get the cost estimates prepared keeping in
view the objective of bringing down the overall costs in
implementation of the project and also get them thoroughly examined
and thereafter seek separate approval from the Commission before
taking up the proposed work.
The MESCOM needs to expedite implementation of HVDS in its
jurisdiction by drawing up an action plan for timely completion and to
derive the envisaged benefits on implementation of the scheme.
The Commission directs the MESCOM to follow the revised guidelines
issued by the Commission and implement HVDS programme in Kadur
subdivision and submit the progress/compliance thereon once in a
quarter to the Commission regularly.
viii. Directive on Niranthara Jyothi Feeder Separation:
Sl.
No. Year
250KVA
replaced
250KVA to 100 KVA
replaced
100KVA to
100 63 25 63 25
1 2014-15 20 17 41 0 36 43 41
2 2015-16
(up to Dec15) 16 12 29 0 20 23 11
clxxvi
The ESCOMs were directed to furnish to the Commission, the
programme of implementing 11 KV taluk wise feeders’ segregation
with the following details
a) Number of 11 KV feeders considered for segregation.
b) Month wise time schedule for completion of envisaged work.
c) Improvement achieved in supply after segregation of feeders.
Compliance by the MESCOM:
The core objective of separation of feeders is to provide regulated
supply to agricultural consumers and continuous power supply to non-
agricultural consumers in rural areas separately through dedicated
feeders. In this regard, DPRs have been prepared at a cost of Rs. 227
crore for segregation of agricultural loads involving 98 and 113 feeders
in Shivamogga and Chikkamagaluru districts respectively. Further, as
per the guidelines under Deen Dayal Upadhyay Grameen Jyothi
Yojana (DDUGJY), the proposal for feeder segregation has been
submitted to the REC with an updated cost of Rs. 289 crore. Approval
for the same has been communicated by the REC and the action will
be taken to call tender duly following the guidelines. As per the
guidelines, all projects under DDUGJY shall have to be completed
within a period of 24 months from the date of issue of Letter of Award.
Commission’s Views:
The Commission, notes that the feeders’ segregation proposal
submitted to the REC under Deen Dayal Upadhyay Grameen Jyothi
Yojana (DDUGJY) scheme has been approved as reported by the
MESCOM. Therefore, the MESCOM is directed to take immediate
necessary steps to expedite implementation of feeder segregation
scheme in its jurisdiction without any further delay, so as to derive the
clxxvii
envisaged benefits set out in the DPR. The MESCOM is directed to
submit progress/compliance thereon to the Commission regarding the
time bound schedule to complete the targeted works, regularly once
in a quarter.
Further, after commissioning of the feeders under DDUGJY in its
jurisdiction, the MESCOM needs to compute the IP set consumption on
the basis of energy meter readings available in the exclusive
agricultural feeders at the substations. However, till the feeder
segregation scheme is implemented fully and feeders are segregated,
the MESCOM shall furnish the consumption of IP sets on the basis of
energy meter readings of individual IP sets only, instead of assessing
the consumption of IP sets on the basis of energy meters fixed to DTCs
feeding predominant IP set loads. The MESCOM shall consider the
actual meter readings of IP sets wherever the meters have been
provided and report the actual consumption of IP sets on the basis of
data from IP set energy meters every month to the Commission,
regularly.
ix. Directive on Demand Side Management in Agriculture:
In view of the urgent need for conserving energy for the benefit of the
consumers in the State, the Commission had directed the MESCOM to
take up replacement of inefficient pumps with energy efficient pumps
approved by the Bureau of Energy Efficiency, at least in one sub-
division in its jurisdiction.
Compliance by the MESCOM:
The MESCOM has initiated action to promote DSM measures in
agricultural sector by selecting two rural feeders viz., Kabaka in Puttur
division and Manai in Udupi division on a pilot basis. In order to
measure the input energy before and after installation of energy
efficient pumps, 261 IP sets connected to the Kabaka feeder and 294
clxxviii
IP sets connected to Manai feeder have already been provided with
new electro-static meters by replacing the existing electro-mechanical
meters during March, 2013 itself. The base line data such as meter
readings and monthly consumption of these IP sets have been carried
out, but providing energy efficient motors to the IP sets could not be
taken up immediately.
Commission’s Views:
The Commission notes that there is no progress in implementation of
DSM measures by the MESCOM; in fact the status is same as that of the
previous year only. The Commission observes that the MESCOM has not
taken any action to take forward the implementation of DSM measures
in its jurisdiction seriously beyond replacement of existing
electromechanical meters by static meters. The MESCOM is directed to
initiate further necessary action required to implement DSM measures.
Further, the Commission is of the opinion that there is a huge potential
for energy saving in the agricultural sector which needs to be tapped
and therefore, much emphasis should be given for implementation of
DSM measures to conserve energy and also precious water for the
benefit of farmers.
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 MESCOM is directed to expedite the implementation of DSM
measures in 11kV Kabaka feeder in Puttur division and Manai feeder in
Udupi division and report compliance thereon to the Commission within
three months from the date of this order.
clxxix
x. Directive on Lifeline Supply to Un-Electrified Households:
The Commission had directed the ESCOMs to prepare a detailed and
time bound action plan to provide electricity to all the un-electrified
villages, hamlets and habitations in every taluk and to every household
therein. The action plan shall spell out the details of additional
requirement of power, infrastructure and manpower along with the
shortest possible time frame (not exceeding three years) for achieving
the target in every taluk and district. The Commission had directed
that the data of un-electrified households could be obtained from the
concerned Gram Panchayaths and the action plan be prepared
based on the data of un-electrified households.
Compliance by the MESCOM:
The works taken up for electrification of un-electrified households under
RGGVY XI plan 1st phase, in Shivamogga and Chikkamagaluru districts
have been completed during March 2012. The MESCOM has achieved
electrification of a 33,290 rural households including BPL households in
Dakshina Kannada and Udupi districts under RGGVY scheme and
1,351 BJ/KJ households under the MESCOM budgetary works during
the FY15. Further, 29,923 BPL households are proposed for electrification
under DDUGJY scheme, for which the sanction is awaited.
Similarly, in Udupi and Dakshina Kannada districts, the RGGVY works
taken up under 2nd phase have been completed during March 2015.
The details of progress are as below:
clxxx
Particulars
District
Udupi Dakshina Kannada
Target as
per survey Progress
Target as
per survey Progress
Intensive electrification
of villages (Nos.) 252 252 356 356
Electrification of
Habitations(Nos.) 50 50 98 94
Electrification of rural
households including
BPL households (Nos.)
10284 10500 23938 22790
Electrification of BPL
households (Nos.) 5657 7004 14614 14427
New proposals:
a. Decentralized Distributed Generation (DDG):
The MESCOM has submitted 25 number of revised DPRs under DDG
project (which includes electrification of 3 un-electrified villages
also) at a cost of Rs.23 crore as per the directions of the REC. Action
will be taken after sanction by the REC.
b. Rajeev Gandhi Grameena Vidyuthikarana Yojana (RGGVY) XII
plan:
The MESCOM has taken up preparation of DPRs for electrification of
households as soon as the RGGVY XII plan was launched. The work
of survey and preparation of DPRs for Shivamogga and
Chikkamagaluru districts has been entrusted to M/s. REC PDCL as
per the directions of the GoK. Accordingly, the same has been
prepared, validated and uploaded to the REC website for
according sanction, which includes electrification of 65,828 rural
households (including 27,712 BPL households) at a cost of Rs. 37
crore.
Further, Government of India has undertaken Deen Dayal
Upadhyaya Gram Jyoti Yojana (DDUGJY) for electrification of rural
clxxxi
households and it has been directed to include this RE component
in the DDUGJY scheme only. Hence, the proposal at a cost Rs.43
crores has been uploaded to DDUGJY, but the REC has sanctioned
only Rs.3.43 crore for Shivamogga and Chikkamagaluru districts.
Revised allocation has been requested for taking up the rural
electrification work as per the survey.
However, the MESCOM is continuously taking up the rural
electrification works under budgetary works including electrification of
hamlets and households. As per guidelines of DDUGJY, all projects
under DDUGJY shall be completed within a period of 24 months from
the date of issue of Letter of Award.
A brief progress is as below:
YEAR
Electrification of Hamlet/Colonies Electrification of Household (BJKJ)
Special
Component
Plan
Tribal
Sub
Plan
General
Special
Component
Plan
Tribal
Sub
Plan
General
2013-14 13 4 43 198 30 264
2014-15 8 10 12 106 37 1208
2015-16
(up to
September15)
2 4 9 24 11 291
clxxxii
Commission’s Views:
The Commission notes that still a vast number of households in the
remote areas remain un-electrified in the jurisdiction of the MESCOM.
The MESCOM needs to expedite electrification of these households with
the seriousness this matter deserves. The electrification of un-electrified
households is an important programme which should be implemented
within in a time frame to ensure that the people are provided with basic
need of electricity. The Commission, while reviewing, the status of
compliance of its directives during the ESCOMs’ Review meetings, has
been stressing upon the ESCOMs to initiate necessary action to provide
electricity to the un-electrified households with funding arrangement by
RGGVY or any other source.
The MESCOM shall come out with an action plan to implement the
directive of the Commission for providing electricity to the un-electrified
households in its jurisdiction and submit compliance/progress achieved
monthly to the Commission.
Further, the Commission concerned with the slow pace of progress of
this programme, in its previous Tariff Order had directed the MESCOM
to cover electrification of 5 per cent of the total identified un-
electrified households every month beginning from April 2015 so as to
complete this programme in about twenty months. There is not much
progress in these aspects. The MESCOM is directed to expedite action
to provide electricity to the un-electrified households covering all the
remaining households within the targeted time and report compliance
to the Commission regarding the monthly progress achieved from May,
2016 onwards. In the event of non-compliance, the Commission may
be constrained to initiate penalty proceedings under section 142 of
the Electricity Act, 2003.
xi. Directive on sub-division as Strategic Business Units (SBU):
clxxxiii
The present organizational set up of the ESCOMs at the field level
appears to be mainly oriented to maintenance of power supply
without a corresponding emphasis on realization of revenue. This has
resulted in a serious mismatch between the power supplied,
expenditure incurred and the revenue realized in many cases. The
continued viability of the ESCOMs urgently calls for a change of
approach in this regard, so that the field level functionaries are made
accountable for ensuring realization of revenues corresponding to the
energy supplied in their jurisdiction.
The Commission has directed the MESCOM to introduce the system of
Cost-Revenue Centre Oriented sub-divisions at least in two divisions in
its operational area and report results of the experiment to the
Commission.
Compliance by the MESCOM:
It is submitted that, Puttur and Shivamogga divisions have been
identified for introduction of SBU concept in the MESCOM. However,
the concept and modalities adopted in the above divisions need to
be refined including distribution of input energy into various accounts.
This requires further study at feeder / DTC / consumer levels for
accountability of energy consumed. In this regard, providing energy
meters to DTCs is in progress. Efforts are being made to achieve study
of energy audit reports and revenue at subdivision level.
With regard to implementation of strategic action plan and conversion
of division/subdivision into Strategic Business Units (SBU), M/s. iDeEK,
Bangalore, has approached the MESCOM with a proposal, which is
under review.
Commission’s Views:
The Commission notes that, the ESCOMs have expressed their difficulty
in introduction of SBU concept in their O & M divisions / sub divisions due
clxxxiv
to implementation issues in the field. The Commission recognizes the
problems associated with implementation of SBU concept. As an
alternative, the Commission had instituted a study to make field
formations of the ESCOMs financially accountable without any
modification in their existing administrative set up. The Commission has
forwarded a report prepared by the consultants M/s PWC regarding
implementation on Financial Management Framework for distribution
utilities to take further action to implement a model suggested by the
consultant, in their jurisdiction to bring in accountability on the
performance of the divisions / sub-divisions in relation to the quantum of
energy received, sold and its cost so that they conduct their business on
commercial principles.
The MESCOM is therefore, directed to implement this financial
management framework model and report compliance thereon within
three months from the date of issue of this Order.
xii. Directive on Prevention of Electrical Accidents:
The directive was as follows:
“The Commission has reviewed the electrical accidents that have
taken place in the State during the year 2014-15 and with regret noted
that as many as 564 people and 514 animals have died due to these
accidents.
[
From the analysis, it is seen that the major causes of these accidents
are due to snapping of LT/HT lines, accidental contact with live
LT/HT/EHT lines, hanging live wires around the electric poles
/transformers etc., in the Streets posing great danger to human lives.
Having considered the above matter, the Commission hereby directs
to prepare an action plan to effect improvements in the distribution
network and implement safety measures to prevent electrical
accidents. Detailed division wise action plans shall be submitted by
the MESCOM to the Commission.”
clxxxv
Compliance by the MESCOM:
As per the directive, the MESCOM has made concerted efforts for
identification of hazardous installations in the distribution system. Also,
the MESCOM has given priority for rectification of hazardous
installations in densely populated areas and public areas. Further, the
local bodies were sensitized about rectification of hazardous streetlight
installations under their control.
The MESCOM is taking necessary measures to rectify the hazardous
locations/installations and providing LT protections to distribution
transformers to prevent and reduce the number of fatal electrical
accidents.
All the linemen of the MESCOM have been provided with safety
equipment such as high voltage line detectors, Earthing rods, safety
kits, etc., apart from educating them regarding safety rules and
regulations. Periodical training is being imparted to them on safety
measures conducting mock tests and various field demonstrations
through trained professionals. Also, wide publicity is being given in daily
newspapers for creating awareness about safety aspects.
The details of number of hazardous installations identified, rectified and
the details of improvements carried out on the distribution system
during the FY16 (up to November, 2015) are as mentioned below:
Month
No. of
hazardous
installations
(both HT&
LT)identified
during the
month
No. of hazardous
installations
rectified during
the month
No. of hazardous
installations yet to
be rectified
Apr-15 673 474 199
May-15 518 500 217
Jun-15 480 422 275
Jul-15 373 410 238
clxxxvi
Aug-15 159 147 250
Sep-15 242 238 254
Oct-15 104 321 37
Nov-15 148 153 32
Further, suitable instructions have been issued to all the field officers to
adhere to the standard construction practices while construction/
expansion of distribution network.
Commission’s Views:
The Commission observes that in spite of various remedial measures
initiated including rectification of hazardous installations in its network
by the MESCOM, the number of fatal electrical accidents involving
both human and livestock has only increased which is of a serious
concern. The MESCOM should take immediate remedial measures to
bring down the number of electrical accidents occurring in the
distribution system. The MESCOM should make more concerted efforts
for identification and rectification of all the hazardous installations
prevailing in the distribution system particularly in densely populated
areas and public places, where the electrical safety clearance
between the structures and the overhead HT/LT lines is usually
inadequate. The MESCOM also needs to take up with the concerned
local bodies for rectification of the hazardous streetlight installations
and other electrical works under their control to ensure safety of the
public.
The MESCOM needs to create awareness through visual/print media
continuously about safety aspects among public to ensure that the
attention on safety aspects is maintained.
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
clxxxvii
aspects in use of electricity and also about ensure use of safety tools
and tackles by their field staff besides imparting necessary training to
the field staff at regular intervals. The MESCOM shall take effective
steps to achieve these.
Further, the MESCOM shall adhere to the best construction practices as
per the standards on construction/expansion of the distribution
network so that no maintenance is required for such network for a
reasonably long period of time. The MESCOM shall also conduct safety
audit and carryout preventive maintenance works as per schedule to
keep the distribution equipment in healthy condition.
The Commission has already forwarded the Safety Technical Manual
prepared by a sub-Committee comprising of experts from the Advisory
Committee, constituted by the Commission which should serve as a
useful guide for the field engineers to record all the technical
deficiencies prevalent in the distribution network and enable them to
take remedial action on the basis of the audit. In the Safety Technical
Manual, a detailed account of the steps to be taken on each element
of the distribution system is enumerated which would help the field
engineer in attending to the defects. The ESCOMs are required to
circulate the Safety Technical Manual among their field staff for
necessary guidance and also to continuously monitor the
implementation of the suggestions/ recommendations contained in
the reports.
The Commission therefore, reiterates its directive that the MESCOM shall
continue to take necessary measures to identify and rectify all the
hazardous locations/installations prevalent in its distribution system and
to provide LT protection to distribution transformers under an action
plan to prevent and reduce the number of fatal electrical accidents
occurring in the distribution system. The compliance regarding the same
shall be submitted to the Commission every month regularly.
clxxxviii
Appendix-1
Objections related to Tariff Issues:- MESCOM
Sl
No. Objections Replies by Licensee
1 MESCOM has submitted details of power
purchase during 2014-15 based on actuals
stating that, it has incurred an average rate
of Rs.5.31/kWh towards short term/medium
term power purchase. The Commission in
the Tariff Order for 2014-15 dated 12.05.2014
had approved an average short-
term/medium term power purchase rate of
Rs.5.216/kWh in FY15. The short
term/medium term power over and above
the quantum approved in tariff order and
purchased at rates exceeding the ceiling
rate approved by the Commission to the
tune of Rs.33.82 Crores needs to be
disallowed.
In the Tariff Order dated 02-03-2015, the
Commission had approved short /Medium
term purchases at Rs.5.25 per Unit. M/s PCKL
which is the nodal agency for managing the
power procurement on behalf of ESCOMs,
has obtained approval from the Commission
whenever the cost exceeded the cap of
Rs.4.50 per unit. However, the Commission
has accepted the application of MESCOM
and is in the process of validating the same to
ensure the prudence of various costs
proposed by the MESCOM.
Commission's Views: The MESCOM’s reply is acceptable.
2 The approach adopted by the MESCOM to
consider the capacity charges from the
petitions filed by various CGS stations
before the CERC for 2014-19 tariff period is
contrary to CERC (Terms and Conditions of
Tariff) Regulations 2014. MESCOM has
considered power purchase cost at an
average increase (over 2 year period i.e.
FY15 to FY17) in the range of 13.57% to
24.62% in respect of KPCL and CGS stations.
The yearly increase considered by
MESCOM is high. Hence, a strict prudence
check is necessary while approving the
The MESCOM has incurred the power
purchase cost during FY15 with reference to
the tariff approved by the CERC / KERC in
respect of different power generators. The
basis of projection for future years is also
based on the present tariff being paid by the
MESCOM.
clxxxix
power purchase costs.
Commission's Views: MESCOM’s reply is acceptable.
3 The actual employee expenses is 70% of the
total O&M expenses and R&M and A&G
expenses are 30% of the total O&M
expenses during 2014-15 and the allowable
weighted average inflation index is 7.14%
for 2014-15 and 7.15% for 2016-17.
Considering the actual O & M expenses for
2013-14 without contribution to Pension and
Gratuity Trust, the three year compounded
annual growth rate (CAGR) of the number
of installations, actual number of
installations as per audited accounts for the
period FY12 to FY15, the weighted inflation
factor and efficiency factor of 2%, the
normative O&M expenses for 2014-15 and
2016-17 will be Rs.265.70 Crores and
Rs.2903.08 Crores respectively. Out of
Rs.38.80 Crores booked as expenses
towards pension and gratuity contributions,
Rs.36.34 Crores remains unpaid. Against
Rs.38.80 Crores claimed as pension and
gratuity contributions, there was a cash
outgo of only Rs.2.46 Crores. Hence, the
uncontrollable O&M expenses on account
of pension and gratuity may be limited to
Rs.2.46 Crores in 2014-15. The interest
earned on Pension and Gratuity fund
investments have to be accounted for in
the ARR/APR. Thus, the allowable O&M
expenses will be Rs.268.16 Crores as against
Rs.321.77 Crores claimed for 2014-15 and
Rs.293.08 Crores as against Rs.582.55 Crores
The proposal of Annual Performance Review
and Annual Revenue Requirement along with
tariff revision is in line with KERC (Tariff)
Regulations and KERC (Terms & Conditions for
Determination of Tariff for Distribution and
Retail Sale of Electricity) Regulations, 2006
and the Commission is in the process of
validating the same.
cxc
projected in 2016-17.
Commission's Views. The O & M expenses are being allowed as per the MYT norms. The
same has been dealt with suitably in the Tariff Order.
4 MESCOM has considered a constant
interest during construction ("IDC") period
(interest capitalized) on adhoc basis for
2014-15 onwards. The interest capitalized as
well as expenses capitalized ought to be
linked with the capital expenditure of works
being undertaken
No comments offered by MESCOM
Commission's Views: While approving the ARR, the amount of interest capitalized is only an
estimate. The actual interest capitalized is considered during the Annual Performance
Review based on the audited accounts.
5 MESCOM has claimed interest on working
capital at Rs.34.61 Crores and Rs.58.57
Crores during 2014-15 and 2016-17
respectively. The consumer security
deposits are Rs.432.11 Crores in 2014-15 as
per audited accounts, but projected as
Rs.490.63 Crores in 2016-17 owing to
increase in connected load. MESCOM is
double charging the consumers by
claiming interest on working capital without
accounting for the consumer security
deposits which have been utilized as
working capital. Hence, it is requested to
reduce the security deposits from the
working capital being allowed to MESCOM
for computing the interest on working
capital or to approve a notional interest
income @ 9% on the security deposits.
MESCOM has claimed the interest on
security deposits during 2016-17 at a rate,
which is not in consonance with the clause
MESCOM has considered the Regulations of
Commission in computation of working
capital. MESCOM has continued the present
rate of interest for projection of interest on
consumer security deposit.
cxci
3.1 of the KERC (Interest on Security
Deposit) Regulations, 2005. The current Bank
Rate is 7.75% which has been published by
the Reserve Bank of India and the same
should be considered for FY17.
Commission's Views: These aspects have been suitably dealt with in the Tariff Order.
6 MESCOM has claimed an expense of
Rs.6.46 Crores during 2014-15 and 2016-17
towards Losses relating to Fixed Assets,
which is not proper.
No comments are offered by MESCOM
Commission's Views: This has been suitably dealt with in the Tariff Order.
7 MESCOM has claimed the ROE for 2014-15
and 2016-17 based on the paid up share
capital, share deposit and reserves and
surplus. MESCOM has considered incorrect
values of reserves and surplus (profit and
loss account) during 2014-15 and 2016-17.
The eligible return on equity will be Rs.58.46
Crores and Rs.65.55 Crores during 2014-15
and 2016-17 respectively.
MESCOM has detailed the basis of projection
of RoE in its application.
Commission's Views: This has been suitably dealt with in the Tariff Order, in terms of the MYT
Regulations.
8 MESCOM has projected a recovery of
Rs.553.52 Crores from the BJ/KJ and IP sets
consumers during 2016-17. The additional
subsidy requirement to meet the sales
projection of 1298.52 MUs during 2016-17
should be borne by GoK.
No comments are offered by MESCOM
Commission's Views: The differential subsidy claims have to be met by the GoK and is not
being passed on to the other consumers.
cxcii
9 The Tariff Policy read with Section 61(g) of
the Act, provides that the State Commission
is required to ensure that the cross subsidies
are to be progressively reduced and that
tariff for each category is within ±20% of the
overall average cost of supply latest by the
year 2010-11. Hence, any benefit which
MESCOM wants to confer to the subsidized
category beyond the maximum of ±20%
should be recovered through Government
subsidy and cannot be loaded to the
subsidizing consumers.
The Commission may take a view in the
matter
Commission's Views: This has been dealt with appropriately in the Tariff Order.
10 MESCOM has made contrary submissions
with respect to the proposal for increase in
demand charges. At page 140 of the
Petition, MESCOM has stated that it has
proposed revision of fixed / demand
charges by Rs.10/ kW for all LT categories
and Rs.200/kVA for HT-1 and HT-2
categories. However, in the proposed rate
schedule as well as in the notification
published in the various newspapers,
MESCOM has not indicated any increase in
the demand charges. Recovery of demand
charges has been projected at Rs.212.66
Crores in Form D-21- Revenue from Existing
Tariff Rates and Revenue from Proposed
Tariff Rate for 2016-17 thereby confirming
that there is no proposal for increase in
demand charges.
The Commission may take a view in the
matter
Commission's Views: This has been dealt with appropriately in the Tariff Order.
11 The ARR and tariff proposal of MESCOM fails
in providing any concrete plan towards No comments are offered by MESCOM
cxciii
agricultural DSM and focuses solely on
industrial DSM.
Commission's Views: The Commission has issued DSM Regulations in 2015 and it would take
some time to implement the same. Nevertheless, ESCOMs should take up agricultural DSM
immediately to conserve energy.
12 In the ARR filed by MESCOM, there are no
separate estimates provided for technical
and commercial losses. The Commission
may either require the Licensee to carry out
proper loss estimation studies for assessment
of technical and commercial losses under
its supervision, or initiate a study itself.
The Commission may take a view in the
matter.
Commission's Views: The computation of distribution losses at 11 KV feeder level and DTC
levels has already been initiated by the ESCOMs as directed by the Commission. This
enables determination of technical losses. Further energy auditing at DTC levels as directed
by the Commission, enables computation of DTC level losses, which includes commercial
losses and technical losses. This mechanism of DTC wise energy audit, after its full
implementation, would enable complete segregation of technical and commercial losses
in the distribution system. The Commission is monitoring the implementation of these
measures.
13 Complete metering of agricultural pump
sets is necessary for proper consumption
estimate. For this an appropriate roadmap
for 100% metering should be approved by
the Commission and a realistic time frame
should be laid. The road map should
provide for disincentives in case of
slippages / non compliance by the
Licensee the targets set for metering
No comments are offered by MESCOM
Commission's Views: The Government has been paying subsidy towards power supplied to
the irrigation pump sets based on the assessed consumption with reference to DTC
metering of the predominantly agricultural feeders. With the proposed segregation of
agricultural and non-agricultural feeders and also DTC metering, it would be possible to
assess the IP sets consumption with substantial accuracy till complete metering of all IP Sets
cxciv
installations is achieved.
14 As per the Article 80, Article 89(i), Article
89(iii), Article 95(q) and Article 97(b) of the
Articles of Association of MESCOM, read
with Section 54 of the Companies Act, 1956
and Regulation 3(5) of the Karnataka
Electricity Regulatory Commission (Tariff)
Regulations, 2000, the Executive Engineer
(El.) (RA), cannot legally file the
applications or sign the papers to be filed
before the Commission, in the absence of a
duly executed Power of Attorney. Since the
impugned application is filed by an
unauthorized person, the same is defective,
not legal, not maintainable and liable to be
rejected.
As per Clause 17 of the G&C of Proceedings
Regulations, a representation or petition and
affidavit may be made before the
Commission through an authorized
employee. The authorization given to the
Superintending Engineer (Ele), (C&RP), is
approved by the Board of Directors. On the
basis of the authorization given, the
authorized signatory has filed the ERC etc.,
Hence, it is valid, maintainable.
Commission's Views: Reply furnished by MESCOM is acceptable.
15 The information and accounts submitted by
the MESCOM, for APR and for justification
for the revision of Tariff are unreliable, not
genuine and not authenticated. The
accounts submitted does not comply the
orders passed by the Hon’ble APTEL
judgments in Appeals 46/2014 and 42/2014.
MESCOM has detailed all the assumptions
and calculations considered in the petition
and furnished the additional details /
clarifications to the Commission in the replies
to the preliminary observations. The
Commission is validating the same.
Commission's Views: Reply furnished by MESCOM is acceptable. The Commission ensures
that the relevant orders of the Hon’ble APTEL are complied with.
16 As per the judgment in Appeal 42/2014,
MESCOM is only entitled to charge for the
supply of electricity within ±20% of the
average cost of supply. Hence, the tariff
proposal has to be in conformity with the
direction of the Hon’ble APTEL.
The implementation of “Cost to Serve” model
would mean introduction of differential tariff
among the ESCOMs and the differential tariff
would be a policy matter of the Government
because of its far-reaching implications on
the consumers in the state.
Commission's Views: The Hon’ble APTEL has ordered to indicate the cross subsidy against
voltage wise sales. The Commission has followed the direction the Tariff Order.
cxcv
17 PPAs of High Cost of Energy have been
assigned to MESCOM and BESCOM, which
results in higher power procurement cost.
This prejudicially affects the consumers of
MESCOM and BESCOM. As per the
judgment in Appeal 42/2014, GoK has no
authority to modify the original power
allocation and the subsequent power
purchases made by the ESCOMS through
PCKL. Hence, the power purchase costs
incurred by PCKL should be apportioned
among the ESCOMS at the proportionate
cost of procurement.
PPAs have been allocated by the
Government and being a Government
Company, MESCOM has to follow its order.
Commission's Views: Reply furnished by MESCOM is acceptable.
18 MESCOM has not followed the principle
stated in Appeal 42/2014 for determination
of cross subsidy. Under Regulation 4(5)(vi) of
the KERC Tariff Regulations, 2000, MESCOM
has not furnished the statement of
proposed cross subsidy including the
amount of such subsidy to the affected
consumer category and the source to
offset this subsidy, as per Regulation 4(5)(ix)
of the KERC (Tariff) Regulations, 2000,
MESCOM is required to furnish a statement
of any subsidy committed by the Govt. of
Karnataka, the consumers to whom it is
directed, and the way in which such
subsidy is proposed to be reflected in the
proposed tariffs applicable to these
consumers. MESCOM has not furnished the
details.
MESCOM has proposed for an uniform
increase in tariff across all categories and in
the replies to the preliminary observations
MESCOM has indicated the absolute cross
subsidy amount against each category.
The GoK is extending tariff subsidy in respect
of the energy consumption of IP sets up to 10
HP load (excluding Pvt. Horticultural Nursery,
Coffee, Tea, Rubber Plantations) and in
respect of BJ/KJ installations up to the
consumption limit of 18 units. This has been
indicated in Form-24 of the tariff petition.
Commission's Views: Reply furnished by MESCOM is acceptable.
cxcvi
19 MESCOM has not furnished Form No. D-
18A. There are several inconsistencies in
data filed by MESCOM relating to
consumer security deposit and the same
needs thorough scrutiny. Though Rs.49.03
Crores of consumer deposit was
capitalized, the amount is still outstanding in
the consumers’ ledger account. But the
meter security deposit as per accounts was
reduced to that extent in the accounts of
the Company, leading to difference
between the balance as per consumer’s
ledger account maintained at Divisions and
as per accounts of the Corporate Office.
MESCOM is claiming interest on consumer
security deposit amount (reduced to the
extent of Rs.49.03 Crores) as per the
accounts of the company maintained in
the corporate office and the interest is
being paid to the consumers as per the
accounts maintained in the Divisions (which
include Rs.49.03 Crores capitalized). If
interest at the rate of 8.75% is calculated,
the actual outgo of interest on the
capitalized amount of Rs.49.03 Crores
(Rs.4.29 Crores) is being paid to the
consumer, but not claimed by MESCOM as
pass through.
A portion of consumer security deposit was
capitalized as per the Government directions
and MESCOM is claiming the interest paid on
consumer security deposit as per the
provisions of MYT regulations. However,
regarding the quantum of security deposit in
the equity of MESCOM, the necessary details
have been submitted to the Commission
while replying to the preliminary observations.
Commission's Views: The interest on Consumers’ security deposit is computed as per he
audited accounts, while approving the ARR under APR. For the Control period, the deposits
are based on estimates, which would get trued up during ARR for the relevant years.
cxcvii
20 The Commission had, from time to time
emphasized that the revision of tariff could
not be separated from the implementation
of the directives. Since, MESCOM has totally
failed to improve the efficiency of its
operations by implementing the directions
issued by the Commission, the hike in tariffs
sought is not justifiable.
MESCOM is making all efforts for compliance
of the directives of the Commission, which is a
continuous process. The Commission is also
reviewing the reports of MESCOM
periodically.
Commission's Views: The status of compliance of Directives is dealt with suitably in the Tariff
Order.
21 The Transmission tariff proposals of KPTCL
were not opposed by MESCOM, as the
Managing Director of KPTCL is the
Chairman of ESCOMs including MESCOM
and all the employees are on deputation
from KPTCL.
The Commission will decide the proposals
submitted by KPTCL judiciously.
Commission's Views: The Commission decides the transmission tariff based on the MYT
Regulations, irrespective of opposition or support by MESCOM to the Tariff application of
KPTCL.
22 Although MESCOM has achieved 97.78%
metering at the end of FY15 (page 11 of the
Annual Report for FY15) the calculations of
consumptions on IP Set and Bhagya Jyothi
installations are not made on the basis of
meter readings. MESCOM has not disclosed
the number of non-functioning or defunct
IP Sets, the number of IP Sets connected to
open wells, number of I. P. Sets connected
to bore wells etc. The estimation made with
regard to I. P. Set consumptions are without
identifying the average power
consumptions for open wells and bore
wells. MESCOM has (in Form D-18) claimed
that out of 2,63,543 number of IP
In respect of BJ/KJ installations the
consumption is taken as per DCB, which is the
billed consumption to consumers. In case of
IP sets the bills are being issued considering
the meter reading. Where the billed
consumption is abnormal compared to the
consumption recorded in the sample DTC
meter in the IP sets predominant areas, such
consumption is considered to ensure correct
billing to IP sets. Based on these data the
subsidy is being claimed.
cxcviii
installations, 1,68,342 number of IP
Installations were read, which means meter
readings of 63.87% of IP Sets are being
taken and 36.13% of IP Sets were
considered as unmetered. In Form No. D18,
the total number of LT4 (a) installations is
shown as 2,63,543, whereas, in Form D-21,
the same was shown as 2,60,399. The
estimation of IP Set consumption at 4280
units per IP set in FY 15, without indicating
the average HP of each IP Set and
estimation of IP Set consumption based on
DTC metering is faulty. Hence, instead of
relying on DTC metering, for estimating IP
Set consumption, relying on actual
consumption recorded in 63.87 % of IP sets
for estimating the remaining 36.13% IP Sets is
accurate and reliable. The unrealistic
estimate is made to claim higher subsidy
from the Government.
Commission's Views: This issue has been dealt with in the Tariff Order.
23 As the application is not submitted within
120 days before the commencement of
financial year, the application is not
maintainable.
The Commission had granted extension of
time till 15.12.2015 to file the petition.
Commission's Views: Reply furnished by MESCOM is acceptable.
24 MESCOM has not indicated any steps to
improve its efficiency to transfer the benefit
of efficiency gains to the consumers and in
the absence of any specific gains the
application is not maintainable. The
MESCOM has failed to improve efficiency
and has not complied with all directives.
Hence, the commission has to reverse the
The Commission will compute the efficiency
gains to be transferred to the consumers
while approving the APR.
cxcix
earlier increased tariff instead of revising it
further.
Commission's Views: Sharing of gains and losses has been suitably dealt with in the Tariff
Order in the relevant chapters.
25 As per section 23 of the Act, MESCOM
should have taken approval of the
Commission for load shedding, but, is
resorting to unscheduled load shedding on
its own which is adversely affecting the
industries.
Scheduled load shedding is notified in
advance. Unscheduled load shedding is
resorted to only when there is a mismatch in
demand and availability of power due to
sudden fall in generation.
Commission's Views: Reply furnished by MESCOM is acceptable.
26 MESCOM has not made available details of
slab wise sanctioned load, fixed charges,
energy charges and consumption and GIS
mapping of at least one feeder with
transformer centers as directed by the
Commission.
MESCOM has provided the slab wise
sanctioned load, fixed charges energy
charges and consumption in the Format D-21.
Commission's Views: Reply furnished by MESCOM is acceptable. The Commission notes that
furnishing slab-wise details within a tariff category is not practicable, as the consumption
and load factor keeps changing month on month.
27
MESCOM has not complied with the
directions of the Commission to install timer
switches to street lights.
Maintenance of the street lights is the
responsibility of local bodies. Hence, action
has to be taken duly obtaining concurrence
of the respective local bodies as the cost of
timer switches has to be borne by them.
Commission's Views: The compliance to directives has been separately dealt with in the
Tariff Order.
28 The Regulatory asset of Rs.92.25 Crores
pertaining to FY13 should not be carried
forward to FY17. The deficit of Rs.13.22
Crores of FY15 should not be considered
while truing up.
The Regulatory Asset is the portion of
legitimate cost created by the Commission
which is in the nature of deferred expenditure
and required to be recovered from
consumers in future. This has been done to
cc
avoid sudden increase in tariff in a particular
year.
Commission's Views This issue has been dealt with in the Tariff Order.
29 KERC is approving Tariff to MESCOM such
that, it will not make losses and MESCOM
has made a profit of Rs.12.60 Crores during
2013, Rs.20.17 Lakhs in 2014 and Rs.13.92
Crores in 2015. But, MESCOM has stated
that, with the existing Tariff it will be making
a loss of Rs.483 Crores by FY16 and is
seeking a revision of 102 paise per unit,
which is not substantiated.
The revision of tariff is needed due to increase
in the cost of generation, distribution and
maintenance of lines and related costs due
to inflation. MESCOM has estimated loss in
revenue as explained in the tariff petition.
Commission's Views: The Commission considers the application in terms of the MYT
Regulations and the facts and figures based on the audited accounts of the base year. The
projection of figures/losses in the tariff application is subject to review by the Commission
and the Commission has taken a fair view on the tariff application, keeping the interest of
the consumers as well the ESCOM, as uppermost.
30 The outstanding amount on the power
purchase dues payable from other ESCOMs
is about Rs.900 Crores and has resulted in
delay in payment to the generators by
MESCOM leading to an accrued interest of
Rs.85.43 Crores. The burden should not be
passed on to the consumers.
Based on actual consumption by ESCOMs
reconciliation is carried out and steps are
taken to collect the payments from other
ESCOMs. Interest payment is inevitable due to
delay in cash flows.
Commission's Views: The Commission is not allowing the interest payable/ paid on power
purchase dues.
31
MESCOM is estimating the consumption of
BJ/KJ and IP set consumptions and claiming
a huge subsidy from government without
considering the meter readings
MESCOM has estimated the IP set
consumption based on the meters installed to
the transformers. Due to increase in the
number of unauthorized IP sets and removal
of meters by consumers in some areas, the
meter readings of IP sets are not accurate.
BJ/KJ installations are billed as per meter
cci
readings.
Commission's Views: This issue has been suitably dealt with in the tariff order.
32 Even though the Commission had rejected
the money spent on employees Bonus,
welfare fund and advertisement, MESCOM
is accounting it in the tariff petition.
MESCOM has submitted its Tariff petition by
taking into consideration all the expenses
incurred by it and the Commission will pass
appropriate orders.
Commission's Views: The O & M expenses are being allowed as per MYT norms irrespective
of the actual expenses incurred by the ESCOMs.
33 As per D2 format furnished by MESCOM, it
has proposed to recover Rs.5.27 per unit for
IP Set sales instead of the cost of Rs.6 per
unit. For BJ/KJ it has sought Rs.6.43 per unit
and there is a vast difference. If the actual
cost of power is collected from the GoK for
supply to IP Sets and BJ/KJ, the revenue
collection will be more than Rs.825.78
Crores.
The tariff in respect of BJ/KJ category is at the
level of average cost of supply whereas the
tariff in respect of IP category is after
factoring the cross subsidy from other cross
subsidizing categories. However, the
Commission may take a view.
Commission's Views: The issue of specific consumption of IP sets and the subsidy payable
by the GoK, is dealt with in the Tariff Order.
34
The projected employee cost for FY16 is
increased by Rs.58.32 Crores and the same
is further increased by Rs.236.19 Crores in
FY17 and Rs.280.62 Crores in FY18 as
compared to the actual payments made in
FY15
In FY 16, MESCOM has recruited about 2000
Junior Linemen and has contemplated to
recruit 60 AEs, 112 JEs, 40 AAOs, 122 Assistants,
74 Jr. Assistants and 996 ALMs in the year
2016-17. This will add to the cost to a
considerable extent along with other factors
of escalation like increase in dearness
allowance, contributory pension fund etc.
Commission's Views: This has been suitably dealt with in the Tariff Order.
ccii
35 MESCOM has projected the average
power purchase prices at Rs.3.43 per unit
for FY15, Rs.3.76 per unit for FY16 and Rs.3.84
per unit for FY17 from various sources of
power in 2016- 17 which, do not correspond
to the recent decreasing trends in fuel
prices. MESCOM has considered a linear
increase in the power purchase cost
without considering the distinct nature of
fixed (capacity) charges and variable
(energy) charges.
MESCOM has incurred the power purchase
cost during FY15 with reference to the tariff
approved by CERC / KERC in respect of
different power generators. The basis of
projection for future years is also based on
the present tariff being paid by MESCOM.
Commission's Views: The basis of projections of power purchase quantum and cost and
their correctness is discussed in the Tariff Order.
36 There is a lot of variation in the total number
of IP Sets as reported to CEA (2218469) and
as stated in the APR(2134409) by ESCOMs
and the Commission has to consider this
aspect.
MESCOM has submitted correct statistics as
per records.
Commission's Views: The data of CEA and the ESCOMs normally relate to different periods
and hence do not match. The Commission would consider the figures furnished by the
ESCOMs, based on the audited accounts.
37 In Form A1 total revenue is shown as
Rs.2,229.97 Crores as against Rs.2259.33
Crores shown in Audited accounts. In the
audited accounts, Depreciation and
amortization expenses are shown as
Rs.63.9542 Crores as against Rs.63.68 Crores
shown in Form A1. In the audited accounts
- Finance Costs is shown as Rs.194.569
Crores as against Rs.134.20 Crores shown in
Form A1.
No comments are offered by MESCOM.
Commission's Views: The Commission considers the figures as per the audited accounts,
and not the figures furnished in other statements which may differ in respect of some items.
cciii
38 MESCOM has not disclosed any plan for the
introduction of pre-paid meters as per
Section 47(5) of the Act.
No comments are offered by the MESCOM.
Commission's Views: The Conditions of Supply provide for installation of prepaid meters to
all the temporary installations and the ESCOMs are expected to follow the Regulations. The
Commission would review the compliance of the Regulation.
39 MESCOM is claiming interest on belated
payment of power purchase bills to the
extent of Rs.85.43 Crores in FY 15, even
though, the same was included in the
audited accounts, even after taking into
account the said amount, MESCOM was
able to generate a net profit of Rs.13.9262
Crores. In the APR, even after excluding
the said amount of Rs.85.43 Crores in FY 15,
MESCOM has shown Rs.13.22 Crores deficit.
Hence, the said amount of Rs.85.43 Crores
should not be passed on to the consumers.
The Commission is consistently disallowing the
claims of MESCOM on the interest of belated
payment of power purchase bills. However,
MESCOM has reiterated its claims to consider
the same as a pass through in the tariff as it is
inevitable for MESCOM to bear the same.
Commission's Views: The Commission is not allowing the interest payable/ paid on power
purchase dues.
40
MESCOM has claimed Section 11 purchases
cost for 33.42 MU at Rs.18.24 Crores (Form
D1) at average cost of Rs.5.4578 per unit.
GoK should be asked to meet the power
purchase cost in excess of average cost of
realization.
Section 11(1) empowers the State
Government to order procurement of power
under the circumstances given in the Act.
Section 11(2) empowers the State
Commission to determine the compensation
payable to the generators from whom power
under section 11(1) is ordered for purchase.
The section does not mention that the
compensation is payable by the State
Government. It is on equity that the person
who has derived the benefits has to pay for
the same.
Commission's Views: MESCOM’s reply is acceptable
cciv
41 MESCOM has claimed 19.377% Rate of
Return on the capital employed to the
electricity business. RoE should be
aggregate of 19.337 % of Rs.243.912 Crores
and 11.75% of Rs.48.85 Crores i.e. Rs.47.17
Crores and Rs.5.74 Crores i.e., Rs.52.91
Crores instead of Rs.66.23 Crores claimed
by MESCOM in Form D-4
MESCOM has submitted necessary RoE
computation details to the Commission while
replying to the preliminary observations.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
42 The Cost of Supply should be determined to
each class of consumers depending upon
geographical area, load patterns, voltage
levels etc. as held by the Hon’ble APTEL in
its judgment dated 08-10-2014 in Appeal
No. 42 of 2014.
As per prevailing norms, MESCOM has
submitted detailed calculations considered in
the petition and the Commission is validating
the same.
Commission's Views: The determination of tariff to different class of consumers is in terms of
the Electricity Act and the Regulations framed by the Commission. The Hon’ble APTEL has
not find fault with existing methodology.
43 No charges are being collected from IP Sets
below 10 HP since August 2008. The interest
on Security Deposit on such IP Sets is
accumulating since then. Since, there is no
existing provision to pay the said interest to
the IP Set consumers in cash or adjust the
same to the bills of other installations of the
same consumer, the consumers are
effectively deprived of the benefit of the
interest on the Security deposit. Hence, it is
requested to adjust the accrued interest as
well as future interest on security deposit
maintained for the IP Set installations below
10 HP to the bills of other installations of the
same consumer or his family members
nominated by the IP Set consumer.
The accrued interest on the deposit can be
adjusted for the relevant installations for
which the deposit was paid.
ccv
Commission's Views: It is incorrect to state that no charges are being collected from the IP
set consumers. The State Government is paying the charges on behalf of the IP set
consumers. The payment of interest on security deposit is regulated as per the provisions of
law, irrespective of the category of consumers.
44 MESCOM has claimed a sum of Rs.37.30
Crores in FY -15, towards payment made to
UPCL (Form D1). Since, KERC has not
approved the power purchase from UPCL
after due publication and inviting
objections from the general public, the
power purchase cost claimed towards
UPCL should not be allowed as pass
through.
The PPA between UPCL and ESCOMs has
already been brought to the notice of the
Commission and the Commission has
informed that, after the determination of the
rates by CERC, the same shall be brought to
the notice of the Commission. Hence, the
Commission is aware of the facts of purchase
of energy from UPCL and this has been
approved by the Commission in its earlier
tariff orders.
Commission's Views: : The MESCOM’s reply is acceptable.
45 MESCOM has claimed bad debts to the
extent of Rs.6.46 cores, for FY -15 and
subsequent years (Form A1). Under the
relevant regulations, MESCOM should not
supply power for more than 60 days in
aggregate after the start of a billing period,
in case of non-payment of power bills. If,
MESCOM has not disconnected any power
supply beyond 60 days, and if it recovers
the power charges beyond the 60 days
period, cost of such lapses should not be
passed on to the consumers, in the name of
bad debts.
Bad debts are also a part of operating
consequences in the sector, as MESCOM
cannot ensure 100% recovery of the dues
while dealing with lakhs of consumers.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
46 In Form D1, MESCOM has claimed SLDC
Charges of Rs.6.10 Crores as against Rs.2.05
Crores approved in Tariff Order 2015. There
is no explanation for this 66.39% increase in
SLDC Charges, when power purchase
No comments are offered by MESCOM.
ccvi
quantity is lesser to an extent of 46 MU in FY
-14. Similarly, there is no explanation for
transmission Charges by Rs.3.89 Crores.
Commission's Views: The SLDC charges/ transmission charges are fixed charges incurred
irrespective of the quantum of power handled. Hence these expenses have to be passed
on to the consumers as per actuals.
47 At page 17 of the application, MESCOM
has stated that it has incurred Rs.11.94
Crores interest on working capital and an
additional Rs.22.67 Crores, which is 50% of
approved amount of Rs.45.34 Crores. As per
the MYT Regulations, MESCOM is entitled to
Rs.28.64 Crores as interest on working
capital as against Rs.34.61 Crores claimed.
No comments are offered by MESCOM.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
48 MESCOM has spent only Rs.5 Lakhs out of
Rs.50 lakhs earmarked for consumer
awareness and meetings. As the consumer
participation is less, the Commission should
discontinue the said allocation, in the
interest of consumers.
No comments are offered by MESCOM.
Commission's Views: The Commission has been issuing appropriate directions for creating
consumer awareness, in this regard and would like to reiterate them. This is being separately
addressed.
49 MESCOM is illegally treating certain
generators who are incorporated under the
Companies Act, 1956, as captive
generating plants, based on the
consumption of their respective
shareholders. This approach is illegal and
results in loss of surcharge.
MESCOM is following the orders of the
Commission in collecting surcharge from the
consumers who are under open access.
Commission's Views: The Rules governing the captive generation which extend certain
concessions to the consumer shareholders are issued by the Government of India under the
ccvii
Electricity Act and the SERCs are bound to follow them.
Objections related to Quality of Service:
50 MESCOM has to introduce toll free number
for lodging complaints by consumers.
MESCOM has introduced toll free telephone
number 1912 to enable consumers to lodge
complaints.
Commission's Views: The reply of MESCOM is acceptable.
51 MESCOM is not adhering to Standards of
Performance (SoP) in replacement of failed
transformers.
MESCOM is taking immediate measures to
repair the failed transformers on priority basis.
Due to non-availability of transformers, delay
might have occurred.
Commission's Views: MESCOM’s reply is acceptable.
52 MESCOM has been sanctioning regular
power supply to multistoried buildings which
do not have occupancy certificate or NOC
issued from the local authorities, under the
appropriate categories, even though, It is
required to sanction power on temporary
basis only.
Power supply is being sanctioned to MS
buildings as per the Conditions of Supply of
Electricity of Distribution Licensees in the State
of Karnataka.
Commission's Views: The reply of MESCOM is acceptable
53 The Superintending Engineer Ele (Technical)
of MESCOM has issued a letter dated 24-5-
2014 and permitted to sanction power to IP
Sets within Bantwal, Sullia and Belthangadi
Taluks, with certain arbitrary conditions
contrary to the KERC (Electricity) Supply
Code and the CoS.
The consumers of MESCOM can avail power
supply to their IP sets as per the provisions
stipulated in Conditions of Supply of Electricity
of Distribution Licensees in The State of
Karnataka.
Commission's Views: This is not a tariff matter. Complaints of any irregularity in the matter
should be dealt separately if supported by facts and evidences.
54 The GoK has issued a Circular bearing No.
EN 41 VSC 2014/P1 dated 14-07-2014 and
instructed all ESCOMS to collect a sum of
Rs.10,000/- from the consumers of IP Sets
To provide necessary infrastructure to IP set
installation a sum of Rs.10,000/- is being
collected from consumers as per the Govt.
direction.
ccviii
seeking power sanction, irrespective of
sanctioned load with retrospective effect
from 31-07-2012 and the same is contrary to
the Recovery of Expenditure Regulations.
Commission's Views This is not a tariff matter.
55 During 2015, the monsoon has failed and
has resulted in lesser hours of power supply
to the IP Sets of farmers. Even though
reconductoring of lines and installation of
new transformers are taken up, there is no
improvement in supply of power to rural
areas.
MESCOM has not supplied continuous
power to the small scale industries,
Agricultural and domestic consumers in
rural areas. MESCOM has to replace the old
and deteriorated conductors, trim the tree
branches and replace broken poles to
improve quality of supply.
Although it is a fact that monsoon has failed
resulting in loss to farmers, it has also caused
reduction in generation of power. However,
MESCOM has tried to make optimum use of
the available power and supplied the same
to consumers. MESCOM has undertaken
works like reconductoring of cables,
installation of new transformers, etc. to
improve the quality of power supply. It has
recruited linemen and provided training to
them for efficient service.
Based on the availability and as per the
policy of Government, the MESCOM is
supplying power to the consumers of rural
areas. MESCOM is taking up maintenance
works on regular basis.
Commission's Views: The reply of MESCOM is acceptable.
56 MESCOM has not indicated details of
installations yet to be serviced with solar
water heating system
Installing Solar water heaters is optional for
Rural Domestic consumers.
Commission's Views: MESCOM’s reply is not relevant.
57 MESCOM has not educated the consumers
on prevention of accidents. The Number of
Fatal and Non fatal accidents are not
furnished.
MESCOM is periodically identifying the
hazardous installations and system improving
programs are being suitably made to rectify
the hazardous installations in order to prevent
the electrical accidents.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
58 MESCOM has not furnished annual No comments are offered by MESCOM
ccix
abstract of reliability index and the number
of IP sets after enumeration.
Commission's Views This issue has been suitably dealt with in the Tariff Order.
59 MESCOM has not quantified the benefits of
NJY scheme and improvement of power
supply to the Rural feeders after
implementation of NJY. MESCOM has not
taken up HVDS implementation as per the
directions of the Commission.
MESCOM has included the Niranthara Jyothi
and HVDS schemes under Deen Dayal
Upadhyaya Gram Jyothi Yojana (DDUGJY) as
per guidelines of REC and the proposal is in
the process of obtaining approval from the
competent authority.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
60 The progress of DSM in agriculture i.e.,
replacement of inefficient IP sets by
efficient IP sets progress is very slow.
MESCOM has not offered any comments.
Commission's Views: The Commission has recently issued DSM Regulations and would be
reviewing regularly the implementation of DSM programmes taken up by the MESCOM.
61 MESCOM is required to provide 7 hrs. of 3
phase power supply to IP sets. However, it is
providing only 4-5 hrs. supply. Sometimes,
voltage will be as low as 250-300 volts and
the IP Sets cannot function due to low
voltage.
MESCOM is providing power supply as per the
directives of the Government and taking up
maintenance works on regular basis.
Commission's Views: The Commission is monitoring the performance of the MESCOM in
supply of quality power to all consumers and has been issuing appropriate directions
whenever deficiencies are noticed.
Specific Requests:
62 The demand based tariff is existing only for
LT3 and LT5. The demand based tariff
should be extended to other LT categories
such as) LT2 (b), LT4, LT6 and LT7. The
consumer will not have any unnecessary
interference like meter testing and
vigilance raids. The exact load on
The Commission may take a view on the
requests.
ccx
transformer can be calculated and large
capacity transformers can be avoided.
Commission's Views: The Commission considers that currently it is not feasible to extend
demand based tariff to other consumers as requested.
63 MSEZ has requested that, a separate
category has to be created and Tariff fixed
for power purchased by MSEZ from
MESCOM. MESCOM has proposed uniform
increase of Rs.1.02 per unit across all
categories of consumers, including MSEZ,
without considering the distinctive status of
MSEZ as a developer of Special Economic
Zone. The distribution loss of MESCOM
should not be levied on MSEZ as it has
power supply at 110kV. The tariff for MSEZ
should be in the range of Rs.5.10 /unit to
Rs.5.50 /unit and the Regulatory asset of
MESCOM for FY15 should not be burdened
on MSEZ.
MESCOM has proposed a hike of Rs.1.02 per
unit across all the categories of consumers in
order to make good the deficit estimated by
MESCOM for FY 17. It is mandatory for
MESCOM to meet the social obligation
programs such as providing infrastructure to IP
sets, electrification of hamlets & BJ&KJ
installations. In the event of power deficit
MESCOM has to procure high cost energy.
There is increase in cost of dependent factors.
As such, the hike proposed by MESCOM is
commensurate with the increased cost of
supply.
Commission's Views: The issue relating the MSEZ, which is a deemed licensee, is being
addressed in a separate Order.
64
ToD should be made optional as industries
are facing difficulties due to compulsory
implementation of ToD.
The rationale behind the ToD tariff is to
incentivize the usage during off-peak hours
and disincentivize at peak hours. The
Commission has introduced the ToD tariff
considering the overall load curve at the
State level.
Commission's Views: There is no proper justification to withdraw the ToD in the evening peak
hours. This has been introduced in the overall interest of the consumers and the Grid.
65 Independent feeders should be provided
for the industries to reduce interruptions.
On specific application from the individual
industries the feasibility of providing
independent feeders will be examined.
Commission's Views: The reply of MESCOM is acceptable.
ccxi
66 Due to high cost of fertilizers, shortage of
labour and volatile prices for the Coffee,
coffee growers are facing hardship and
any increase in existing tariff would increase
the burden on the Coffee growers. The
Coffee plantations use IP sets for a period
of 6 weeks in a year during February and
March and only as back up when rains fail.
Hence, coffee plantations have to be
considered as a seasonal industry with tariff
concession.
The Commission may take a view on the
requests.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
67
LT4 (c) (i) and (ii) consumers should be
clubbed to one category considering the
paying capacity of Coffee growers while
determining the tariff as against the existing
basis of below 10 HP and above 10 HP in
the LT4 (c) (i) and (ii) categories.
Coffee planters should be treated on par
with other agriculturists and levied charges
without discrimination.
The classification of consumers across
categories was extensively dealt at length by
the Commission in its previous tariff orders and
MESCOM has continued the same in the
present proposal.
Commission's Views: Coffee plantations have been given a special status as compared to
other agricultural lands and therefore coffee planters cannot be treated on par with other
agriculturists. Further, extending any subsidy to coffee plantations has to be decided by the
State Government.
68 Uninterrupted power supply needs to be
provided during November to February
from 3 pm to 8 pm to enable the coffee
growers to process coffee.
No Comments offered by MESCOM
Commission's Views This is not a tariff matter and the consumers concerned should
approach the appropriate authorities in MESCOM in the matter.
69 SMS alert and Email should be introduced
to inform consumers about the power cuts.
It is a progressive thinking and MESCOM has
noted the same.
Commission's Views: The Commission has directed all ESCOMs to provide advance
ccxii
information to the consumers about scheduled load shedding and would monitor certain
initiatives taken by ESCOMs to achieve this.
70 Schools/ colleges /educational institutions
run by the State / Central Government
/Local Bodies are classified under LT 2 (a)
category, but Schools/ colleges
/educational institutions run by private
parties including aided and unaided
institutions are covered under LT 2 (b). This is
not proper as the Government of India has
passed Right of Children to Free and
Compulsory Education Act, 2008, under
which every child of the age of six to
fourteen years shall have a right to free and
compulsory education in a neighborhood
school till completion of elementary
education.
The Commission may take a view on the
requests.
Commission's Views: The Current classification of consumers is reasonable.
71 ESCOMs are using the provisions of Section
126 of the Act for provisional assessment
even in case of alleged theft of electricity,
in the absence of method of assessment of
the electricity charges payable in the case
of theft of electricity, pending adjudication
by the appropriate court. In the absence of
provisions for provisional assessment in the
case of alleged theft cases, the consumers
are facing great hardship and
inconvenience. Hence, the CoS needs to
be amended suitably.
For theft of electricity, the method of
assessment is available in clause 42.06 of
Conditions of Supply of Electricity of
Distribution Licensees.
Commission's Views: This is not a tariff matter and the aggrieved consumer may file a
suitable petition seeking amendments to the CoS.
72 Under HT 2(a) category, MESCOM is
empowered to supply power to “Industrial
Mangalore SEZ has submitted tariff petition
and the Commission is validating the same.
ccxiii
Estates” in a single point. Since MSEZ is also
an “Industrial Estate” a separate tariff for
MSEZ is not required.
Commission's Views: The MSEZ is a deemed licensee under the Notification issued by the
Government of India. It is not a industrial consumer as stated by the objector and hence a
separate tariff for MSEZ is required to be determined.
73 The Coffee plantations should be
exempted from payment of reintroduced
Electricity tax of 10 paise per unit on
captive generators
No Comments are offered by MESCOM
Commission's Views: This levy does not come in the purview of the Commission.
74 3 Phase power supply should be given
during the day time to IP Sets, instead of
during night to avoid difficulties to farmers.
MESCOM is providing 3 Phase power supply
during the day time to IP Sets.
Commission's Views: The reply of the MESCOM is acceptable.
75 The facilities and concessions made
available to seasonal industries should be
extended to the ice plants and cold
storage industries as in the neighboring
States and also a separate tariff fixed.
MESCOM will abide by the orders of the
Commission.
Commission's Views: This issue has been suitably dealt with in the Tariff Order.
76
The rate proposed for the HT consumers of
MSEZ should be competitive so that, their
products are viable in the global market.
Like any other commodities, cost of electricity
procured & supplied by MESCOM is also
influenced by several associated factors and
the proposal for increase in tariff is
commensurate with the increased cost of
supply. However, the Commission may take
a view on the statements of the objector
while determining the tariff for MSEZ.
Commission's Views: The Commission has dealt with this matter in a separate Order.
77 The functioning of consumer advocacy in
the Commission should be restarted.
The Commission may take a view in the
matter.
Commission's Views: This is not a tariff related issue.
ccxiv
78 The Industries certified by the Department
of Industries and Commerce should be
brought under LT5 Category without
insisting on their manufacturing status.
MESCOM will resolve the issue on case to
case basis with due reference to the
classifications enumerated in the tariff order.
Commission's Views: The reply furnished by the MESCOM is in order.
79 The monthly energy bill should mention the
number of hours of power supply and
corresponding amount of Fixed charges
should be deducted for the duration of non
availability of power supply.
The contention for linking of the fixed charges
to duration of power availability cannot be
accepted since the ESCOMs have to
maintain its power supply network even in
case of no supply.
Commission's Views: The reply furnished by the MESCOM is reasonable.
80 The rebate of ToD facility should be
extended from 20.00 Hrs. to 8.00 hrs. instead
of 20.00 hrs to 6.00 Hrs.
The rationale behind the ToD tariff is to
incentivize the usage during off-peak hours
and disincentivize at peak hours.
Commission's Views: The reply furnished by the MESCOM is in order.
81 The LT power sanction limit should be
increased from 67 HP to 100 HP as being
done in neighbouring States.
MESCOM will follow the regulations of the
Commission.
Commission's Views: There is no justification for review of the current arrangement.
82 MESCOM should establish a service station
at Baikampadi industrial area to provide
quick service.
No comments offered by MESCOM
Commission's Views: This is not a tariff matter.
83 MESCOM has to provide Mobile escalators
for the service staff to avoid accidents
while climbing the poles /transformer
centers.
MESCOM will consider the suggestion
depending upon the essentiality with
reference to the field conditions.
Commission's Views: The reply of MESCOM is acceptable.
84 MESCOM should introduce online payment
facility for payment of monthly bills.
MESCOM will deliberate in detail the issues
involved in receiving payment through NEFT
and RTGS.
Commission's Views: The reply of the MESCOM is acceptable.
85 Solar rebate should be extended to all LT 2
(a) consumers who don’t have any heat
Rebates are being extended to the
consumers as per the Tariff Orders.
ccxv
load or who have installed water heaters
using bio fuels also.
Commission's Views: As a policy, the solar rebate is to encourage use of solar energy and
not for other kinds of fuels.
86 The Additional Director General of Police,
Administration, Bengaluru, has requested to
include police stations under LT2 (a)
category instead of LT3 category
considering the nature of service rendered
by the Police to the citizens.
MESCOM will abide by the orders of the
Commission.
Commission's Views: The Police stations are office establishments like any other office. The
usage of power in the police station is not for domestic purposes. Hence, the request to
charge police station at LT2a, is not reasonable.
The gist of the submissions made during the Public Hearing, held on
27.02.2016.
1 Telecom towers are to be brought under
ToD tariff and AMR facility is to be
extended to installations consuming more
than 500 units.
MESCOM has replied orally to the points
raised by the public.
2 The tariff increase should be linked to the
performance of the ESCOM, as MESCOM’s
performance is better compared to other
ESCOMs, differential tariff should be fixed to
consumers of MESCOM.
3 Even though MPM owes an amount of
Rs.94 Crores, MESCOM has not
disconnected power to the company.
4 The Consumer interaction meetings are not
being conducted by MESCOM at
subdivision level.
5 Insulators on Agumbe-Thirthahalli line have
failed soon after charging and the
responsibility has to be fixed on the
ccxvi
concerned officer.
6 MESCOM is not attending to consumer
complaints during night times
7 IP set arrears pertaining to the period
before 2008 is being shown as arrears in the
bills and the same should be waived.
8 Rebate should be given for advance
payment of bills by consumers. ATPs should
be installed at Section offices.
9 IP set bills should indicate the details of the
subsidy.
10 Low voltage problem in Sullia area should
be attended. MESCOM should keep ready
at least 10 transformers per subdivision
/taluk.
10 MESCOM is not informing the status to
consumers after attending complaints
lodged through 1912.
11 The Commission should advise the
Government to increase the PLF of KPCL’s
Thermal stations.
12 Solar IP Sets should be encouraged. Energy
conservation measures should be taken up
and awareness about the same needs to
be created.
13 Concessional tariff should be fixed for
regional science centres which are now
charged under commercial tariff.
14 Vigilance has raided KMC college and
imposed penalty, but the same has not
been collected and the power supply is
continued.
Commission's Views: The Commission has considered the tariff related points raised by the
public / stakeholders and the replies given by MESCOM, while passing this Tariff Order.
ccxvii
ANNEXURE-1
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY17
NAME OF THE GENERATING STATION
ENERGY
ALLOWE
D (MU)
CAPACIT
Y
CHARGES
(RS Cr)
ENERGY
CHARG
ES (RS
Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 7538.53 619.64 2327.80 2947.44 3.91
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1510.85 211.06 454.42 665.49 4.40
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 2823.10 295.60 1035.95 1331.55 4.72
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3054.06 444.06 1014.43 1458.49 4.78
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 2720.23 0.00 849.12 849.12 3.12
TOTAL KPCL THERMAL 17646.77 1570.36 5681.72 7252.08 4.11
CGS SOURCES
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
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.09 363.15 589.24 3.95
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 174.91 222.18 397.09 3.67
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 228.93 297.41 3.13
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 308.49 413.73 3.23
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 182.73 272.90 3.73
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 199.16 310.37 3.58
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 371.08 556.34 3.86
MAPS (2X220MW) 249.31 0.00 49.86 49.86 2.00
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 274.89 274.89 2.98
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 298.54 298.54 2.98
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 455.07 455.07 2.98
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 360.39 635.30 4.03
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 349.87 611.49 3.88
TOTAL CGS 21525.17 1984.13 4996.71 6980.84 3.24
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1767.94 3093.67 4.15
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 4203.20 20.49 182.11 202.60 0.48
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 180.68 2.32 17.79 20.11 1.11
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 527.47 24.38 55.93 80.30 1.52
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2923.95 19.16 229.11 248.27 0.85
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1087.86 11.82 129.40 141.22 1.30
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 523.72 27.51 80.48 107.99 2.06
ccxviii
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 65.15 1.14 29.76 30.90 4.74
KADRA POWER HOUSE_KPH (3x50) 355.25 19.15 47.57 66.72 1.88
KODASALLI DAM POWER HOUSE_KDPH (3x40) 325.56 12.00 34.43 46.42 1.43
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 91.67 1.96 14.77 16.74 1.83
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS_SHIVA & SHIMSHA 310.76 3.54 27.46 31.00 1.00
MUNIRABAD POWER HOUSE (2x9+1x10) 109.63 0.43 8.68 9.11 0.83
TOTAL KPCL HYDRO 10704.90 143.90 857.48 1001.38 0.94
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 65.09 0.00 65.09 5.83
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHER HYDRO 144.08 67.73 0.00 67.73 4.70
SHORT TERM POWER
SHORT TERM POWER 1108.80 0.00 558.84 558.84 5.04
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 3826.75 0.00 1368.74 1368.74 3.58
KPCL-WIND (9x0.225+10x0.230) 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
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 32.89 0.00 19.63 19.63 5.97
TOTAL NCE 6846.71 0.00 2790.38 2790.38 4.08
TRANSMISSION CHARGES
PGCIL CHARGES 949.21 949.21 0.44
KPTCL CHARGES 3092.77 3092.77 0.47
SLDC & POSOCO CHARGES 19.99 19.99 0.003
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 65439.11 5091.87 20715.0
2
25806.8
9 3.94
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY18
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGES
(RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 6696.43 560.42 2109.13 2669.54 3.99
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1603.00 221.33 480.87 702.20 4.38
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 3241.00 330.35 1213.08 1543.43 4.76
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3294.00 472.15 1116.01 1588.16 4.82
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 4489.07 459.67 1429.28 1888.95 4.21
ccxix
TOTAL KPCL THERMAL 19323.50 2043.91 6348.37 8392.29 4.34
CGS SOURCES
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
NTPC-Talcher (4X500MW) 2765.03 213.25 408.37 621.62 2.25
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.13 370.41 596.55 4.00
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 176.33 226.63 402.96 3.72
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 233.50 301.99 3.18
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 314.66 419.90 3.28
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 186.39 276.55 3.78
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 203.14 314.36 3.63
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 378.50 563.77 3.91
MAPS (2X220MW) 249.31 0.00 50.86 50.86 2.04
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 280.39 280.39 3.04
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 304.51 304.51 3.04
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 464.17 464.17 3.04
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 367.60 642.51 4.08
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 356.86 618.49 3.93
TOTAL CGS 21525.17 1985.60 5096.64 7082.24 3.29
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1803.30 3129.03 4.19
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 5469.75 20.28 248.69 268.97 0.49
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 195.03 2.32 20.00 22.32 1.14
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 567.27 24.35 62.23 86.58 1.53
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2987.82 18.88 245.91 264.79 0.89
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1103.85 11.67 137.97 149.64 1.36
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 447.48 27.51 70.91 98.42 2.20
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 63.36 1.14 30.59 31.73 5.01
KADRA POWER HOUSE_KPH (3x50) 355.41 19.15 49.59 68.74 1.93
KODASALLI DAM POWER HOUSE_KDPH (3x40) 330.66 12.00 36.43 48.43 1.46
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 90.09 1.25 15.25 16.49 1.83
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS. 330.66 3.54 30.45 33.99 1.03
MUNIRABAD POWER HOUSE (2x9+1x10) 103.95 0.43 8.62 9.06 0.87
TOTAL KPCL HYDRO 12045.33 142.53 956.63 1099.16 0.91
OTHER HYDRO
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 68.99 0.00 68.99 6.18
ccxx
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHER HYDRO 144.08 71.64 0.00 71.64 4.97
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 3981.63 0.00 1424.99 1424.99 3.58
KPCL-WIND (9x0.225+10x0.230) 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
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 32.89 0.00 19.63 19.63 5.97
TOTAL NCE 8394.81 0.00 3413.83 3413.83 4.07
TRANSMISSION CHARGES
PGCIL CHARGES 958.70 958.70 0.45
KPTCL CHARGES 3171.28 3171.28 0.46
SLDC & POSOCO CHARGES 25.80 25.80 0.00
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 68895.57 5569.41 21774.55 27343.96 3.97
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY19
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGES
(RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 6696.43 579.68 2151.31 2730.99 4.08
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1603.00 219.91 490.49 710.40 4.43
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 3241.00 336.83 1237.34 1574.17 4.86
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3294.00 464.75 1138.33 1603.09 4.87
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 4611.00 464.76 1497.46 1962.23 4.26
YERMARUS THERMAL POWER STATION_YTPS (2x800) 1547.46 204.23 413.13 617.36 3.99
TOTAL KPCL THERMAL 20992.89 2270.16 6928.07 9198.23 4.38
CGS SOURCES
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
NTPC-Talcher (4X500MW) 2765.03 213.25 416.53 629.79 2.28
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.13 377.82 603.96 4.05
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 176.33 231.16 407.49 3.77
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 238.17 306.66 3.23
ccxxi
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 320.95 426.20 3.33
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 190.12 280.28 3.83
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 207.21 318.42 3.68
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 386.07 571.33 3.96
MAPS (2X220MW) 249.31 0.00 51.88 51.88 2.08
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 285.99 285.99 3.10
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 310.60 310.60 3.10
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 473.46 473.46 3.10
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 374.95 649.86 4.13
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 364.00 625.62 3.97
TOTAL CGS 21525.17 1985.60 5198.58 7184.17 3.34
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1839.36 3165.10 4.24
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 5469.75 19.16 260.88 280.04 0.51
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 195.03 2.32 20.83 23.16 1.19
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 567.27 24.35 64.43 88.78 1.57
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2987.82 18.78 258.39 277.17 0.93
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1103.85 9.89 144.98 154.87 1.40
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 447.48 27.36 73.19 100.54 2.25
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 63.36 1.14 32.33 33.47 5.28
KADRA POWER HOUSE_KPH (3x50) 355.41 19.15 51.70 70.85 1.99
KODASALLI DAM POWER HOUSE_KDPH (3x40) 330.66 11.69 37.98 49.67 1.50
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 90.09 0.39 16.02 16.41 1.82
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS_SHIVA & SHIMSHA 330.66 3.54 31.75 35.29 1.07
MUNIRABAD POWER HOUSE (2x9+1x10) 103.95 0.43 8.68 9.11 0.88
TOTAL KPCL HYDRO 12045.33 138.20 1001.17 1139.37 0.95
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 73.13 0.00 73.13 6.55
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHERS 144.08 75.78 0.00 75.78 5.26
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 4649.94 0.00 1669.14 1669.14 3.59
KPCL-WIND (9x0.225+10x0.230) 12.86 0.00 4.32 4.32 3.36
MINI HYDEL-IPPS 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
ccxxii
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
TOTAL NCE 10265.57 0.00 4452.20 4452.20 4.34
TRANSMISSION CHARGES
PGCIL CHARGES 968.29 968.29 0.45
KPTCL CHARGES 3472.60 3472.60 0.48
SLDC & POSOCO CHARGES 27.85 27.85 0.00
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 72435.72 5795.47 23888.11 29683.58 4.10
ccxxiii
ANNEXURE-II
APPROVED POWER PURCHASE FOR MESCOM’S - FY17
NAME OF THE GENERATING STATION % SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 10.340 779.519 64.073 240.705 304.779 3.910
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 8.018 121.146 16.924 36.437 53.361 4.405
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 8.018 226.367 23.702 83.066 106.768 4.717
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 8.018 244.886 35.606 81.341 116.947 4.776
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 8.018 218.118 0.000 68.085 68.085 3.121
TOTAL KPCL THERMAL 9.010 1590.036 140.306 509.635 649.941 4.088
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 8.018 260.336 15.852 59.299 75.150 2.887
N.T.P.C-RSTP-III (1X500MW) 8.018 65.725 6.036 15.434 21.470 3.267
NTPC-Talcher (4X500MW) 8.018 221.711 17.099 32.102 49.202 2.219
Simhadri Unit -1 &2 (2X500MW) 8.018 119.533 18.129 29.119 47.248 3.953
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur
TPS Stage I &2 &3 (3X500MW)
8.018 86.741 14.025 17.816 31.840 3.671
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW)
8.018 76.202 5.491 18.356 23.848 3.130
Neyveli Lignite Corporation_NLC TPS-II STAGE 2
(4X210MW)
8.018 102.686 8.439 24.736 33.175 3.231
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 8.018 58.641 7.230 14.652 21.882 3.732
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 8.018 69.425 8.917 15.969 24.887 3.585
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN)
(2X500MW)
8.018 115.686 14.855 29.754 44.610 3.856
MAPS (2X220MW) 8.018 19.991 0.000 3.998 3.998 2.000
Kaiga Unit 1&2 (2X220MW) 8.018 73.965 0.000 22.042 22.042 2.980
Kaiga Unit 3 &4 (2X200MW) 8.018 80.328 0.000 23.938 23.938 2.980
NPCIL-Kudan Kulam Atomic Power Generating Station
(KKNPP) (1X1000MW)
8.018 122.447 0.000 36.489 36.489 2.980
DVC-Unit-1 &2 Meja TPS (2x500MW) 8.018 126.276 22.043 28.898 50.941 4.034
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 8.018 126.276 20.978 28.054 49.032 3.883
TOTAL CGS 8.018 1725.969 159.095 400.655 559.750 3.243
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 8.018 598.386 106.302 141.760 248.062 4.146
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 3.854 161.977 0.790 7.018 7.807 0.482
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2)
8.018 14.488 0.186 1.427 1.613 1.113
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 8.018 42.295 1.955 4.484 6.439 1.522
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 8.018 234.453 1.536 18.371 19.907 0.849
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 8.018 87.229 0.948 10.376 11.323 1.298
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 8.018 41.994 2.206 6.453 8.659 2.062
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
(1x2+2x12)+(1x7.2+1x6)
8.018 5.224 0.091 2.386 2.478 4.743
KADRA POWER HOUSE_KPH (3x50) 8.018 28.485 1.535 3.814 5.350 1.878
KODASALLI DAM POWER HOUSE_KDPH (3x40) 8.018 26.105 0.962 2.760 3.722 1.426
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 8.018 7.350 0.157 1.185 1.342 1.826
ccxxiv
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6)
HYDRO STATIONS_SHIVA & SHIMSHA
8.018 24.918 0.284 2.202 2.486 0.998
MUNIRABAD POWER HOUSE (2x9+1x10) 8.018 8.791 0.035 0.696 0.731 0.831
TOTAL KPCL HYDRO 6.383 683.308 10.685 61.172 71.857 1.052
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39)
8.018 8.950 5.219 0.000 5.219 5.832
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 8.018 2.604 0.212 0.000 0.212 0.813
TOTAL OTHERS 8.018 11.553 5.431 0.000 5.431 4.701
SHORT TERM POWER 8.018 88.908 0.000 44.810 44.810 5.040
RENEWABLE SOURCES
WIND-IPPS 288.300 0.000 102.923 102.923 3.570
KPCL-WIND (9x0.225+10x0.230) 0.000 0.000 0.000 0.000 0.000
MINI HYDEL-IPPS 407.040 0.000 136.358 136.358 3.350
CO-GEN/CAPTIVE 1.860 0.000 0.480 0.480 2.581
BIOMASS 0.000 0.000 0.000 0.000 0.000
SOLAR-IPP 65.200 0.000 53.730 53.730 8.241
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
0.000 0.000 0.000 0.000 0.000
TOTAL RENEWABLE SOURCES 762.400 0.000 293.492 293.492 3.850
TRANSMISSION CHARGES
PGCIL CHARGES 76.111 76.111 0.441
KPTCL CHARGES 246.900 246.900 0.452
SLDC & POSOCO CHARGES 1.640 1.640 0.0003
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 8.018 5460.559 421.820 1776.174 2197.994 4.025
APPROVED POWER PURCHASE FOR MESCOM’S FOR FY18
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 8.189 548.337 45.890 172.706 218.596 3.987
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 8.189 131.262 18.124 39.376 57.500 4.381
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 8.189 265.389 27.050 99.333 126.384 4.762
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 8.189 269.729 38.662 91.385 130.047 4.821
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 8.189 367.588 37.640 117.037 154.677 4.208
TOTAL KPCL THERMAL 8.189 1582.305 167.366 519.837 687.203 4.343
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 8.189 265.859 16.188 61.768 77.956 2.932
N.T.P.C-RSTP-III (1X500MW) 8.189 67.120 6.164 16.077 22.241 3.314
ccxxv
NTPC-Talcher (4X500MW) 8.189 226.415 17.462 33.439 50.901 2.248
Simhadri Unit -1 &2 (2X500MW) 8.189 122.069 18.517 30.331 48.848 4.002
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur
TPS Stage I &2 &3 (3X500MW) 8.189 88.582 14.439 18.557 32.996 3.725
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW) 8.189 77.819 5.608 19.120 24.728 3.178
Neyveli Lignite Corporation_NLC TPS-II STAGE 2
(4X210MW) 8.189 104.865 8.618 25.766 34.384 3.279
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 8.189 59.885 7.383 15.262 22.645 3.781
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 8.189 70.898 9.107 16.634 25.741 3.631
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN)
(2X500MW) 8.189 118.141 15.171 30.993 46.164 3.908
MAPS (2X220MW) 8.189 20.415 0.000 4.165 4.165 2.040
Kaiga Unit 1&2 (2X220MW) 8.189 75.534 0.000 22.959 22.959 3.040
Kaiga Unit 3 &4 (2X200MW) 8.189 82.032 0.000 24.934 24.934 3.040
NPCIL-Kudan Kulam Atomic Power Generating Station
(KKNPP) (1X1000MW) 8.189 125.045 0.000 38.009 38.009 3.040
DVC-Unit-1 &2 Meja TPS (2x500MW) 8.189 128.955 22.511 30.101 52.612 4.080
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 8.189 128.955 21.423 29.222 50.645 3.927
TOTAL CGS 8.189 1762.589 162.591 417.339 579.929 3.290
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 8.189 611.082 108.558 147.663 256.221 4.193
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 8.189 447.891 1.661 20.364 22.025 0.492
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2) 8.189 15.970 0.190 1.638 1.828 1.144
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 8.189 46.451 1.994 5.096 7.090 1.526
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 8.189 244.658 1.546 20.136 21.682 0.886
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 8.189 90.389 0.956 11.297 12.253 1.356
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 8.189 36.642 2.253 5.806 8.059 2.199
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 8.189 5.188 0.093 2.505 2.598 5.008
KADRA POWER HOUSE_KPH (3x50) 8.189 29.103 1.568 4.061 5.629 1.934
KODASALLI DAM POWER HOUSE_KDPH (3x40) 8.189 27.076 0.982 2.983 3.966 1.465
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 8.189 7.377 0.102 1.248 1.351 1.831
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6)
HYDRO STATIONS_SHIVA & SHIMSHA 8.189 27.076 0.290 2.493 2.783 1.028
MUNIRABAD POWER HOUSE (2x9+1x10) 8.189 8.512 0.035 0.706 0.742 0.871
TOTAL KPCL HYDRO 8.189 986.332 11.671 78.333 90.005 0.913
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39) 8.189 9.139 5.650 0.000 5.650 6.182
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 8.189 2.659 0.216 0.000 0.216 0.813
TOTAL OTHERS 8.189 11.798 5.866 0.000 5.866 4.972
RENEWABLE SOURCES
WIND-IPPS 288.300 0.000 103.211 103.211 3.580
KPCL-WIND (9x0.225+10x0.230) 0.000 0.000 0.000 0.000 0.000
MINI HYDEL-IPPS 407.040 0.000 136.358 136.358 3.350
CO-GEN/CAPTIVE 1.860 0.000 0.480 0.480 2.581
ccxxvi
BIOMASS 0.000 0.000 0.000 0.000 0.000
SOLAR-IPP 130.000 0.000 66.040 66.040 5.080
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
3x1+3x1+1x3x1x5 0.000 0.000 0.000 0.000 0.000
TOTAL RENEWABLE SOURCES 827.200 0.000 306.090 306.090 3.700
TRANSMISSION CHARGES
PGCIL CHARGES 78.503 78.503 0.445
KPTCL CHARGES 238.160 238.160 0.412
SLDC & POSOCO CHARGES 1.940 1.940 0.0003
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 8.188 5781.307 456.052 1787.865 2243.916 3.881
APPROVED POWER PURCHASE FOR MESCOM’S FOR FY19 NAME OF THE GENERATING STATION % SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 8.195 548.798 47.507 176.308 223.815 4.078
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 8.195 131.372 18.023 40.197 58.220 4.432
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 8.195 265.612 27.605 101.405 129.010 4.857
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 8.195 269.956 38.088 93.291 131.379 4.867
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 8.195 377.889 38.089 122.723 160.812 4.256
YERMARUS THERMAL POWER STATION_YTPS (2x800) 8.195 126.820 16.737 33.858 50.595 3.989
TOTAL KPCL THERMAL 8.195 1720.447 186.049 567.782 753.830 4.382
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 8.195 266.082 16.202 63.056 79.258 2.979
N.T.P.C-RSTP-III (1X500MW) 8.195 67.176 6.169 16.412 22.581 3.362
NTPC-Talcher (4X500MW) 8.195 226.605 17.477 34.137 51.613 2.278
Simhadri Unit -1 &2 (2X500MW) 8.195 122.172 18.533 30.964 49.496 4.051
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur
TPS Stage I &2 &3 (3X500MW) 8.195 88.656 14.451 18.944 33.395 3.767
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW) 8.195 77.884 5.613 19.519 25.132 3.227
Neyveli Lignite Corporation_NLC TPS-II STAGE 2
(4X210MW) 8.195 104.953 8.625 26.303 34.928 3.328
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 8.195 59.935 7.389 15.581 22.970 3.832
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 8.195 70.957 9.114 16.981 26.096 3.678
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN)
(2X500MW) 8.195 118.240 15.183 31.640 46.823 3.960
MAPS (2X220MW) 8.195 20.432 0.000 4.251 4.251 2.081
Kaiga Unit 1&2 (2X220MW) 8.195 75.598 0.000 23.438 23.438 3.100
ccxxvii
Kaiga Unit 3 &4 (2X200MW) 8.195 82.101 0.000 25.455 25.455 3.100
NPCIL-Kudan Kulam Atomic Power Generating Station
(KKNPP) (1X1000MW) 8.195 125.150 0.000 38.802 38.802 3.100
DVC-Unit-1 &2 Meja TPS (2x500MW) 8.195 129.063 22.530 30.729 53.259 4.127
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 8.195 129.063 21.441 29.831 51.272 3.973
TOTAL CGS 8.195 1764.070 162.727 426.043 588.770 3.338
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 8.195 611.595 108.649 150.743 259.392 4.241
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 8.195 448.267 1.570 21.381 22.951 0.512
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2) 8.195 15.983 0.190 1.707 1.898 1.187
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 8.195 46.490 1.996 5.280 7.276 1.565
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 8.195 244.863 1.539 21.176 22.715 0.928
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 8.195 90.465 0.810 11.882 12.692 1.403
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 8.195 36.673 2.242 5.998 8.240 2.247
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 8.195 5.193 0.093 2.650 2.743 5.283
KADRA POWER HOUSE_KPH (3x50) 8.195 29.127 1.569 4.237 5.806 1.993
KODASALLI DAM POWER HOUSE_KDPH (3x40) 8.195 27.099 0.958 3.113 4.071 1.502
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 8.195 7.383 0.032 1.313 1.345 1.821
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6)
HYDRO STATIONS_SHIVA & SHIMSHA 8.195 27.099 0.290 2.602 2.892 1.067
MUNIRABAD POWER HOUSE (2x9+1x10) 8.195 8.519 0.035 0.711 0.747 0.877
TOTAL KPCL HYDRO 8.195 987.161 11.326 82.049 93.376 0.946
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION
(6x39) 8.195 9.147 5.994 0.000 5.994 6.552
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 8.195 2.661 0.216 0.000 0.216 0.813
TOTAL OTHERS 8.195 11.808 6.210 0.000 6.210 5.259
RENEWABLE SOURCES
WIND-IPPS 333.850 0.000 119.852 119.852 3.590
KPCL-WIND (9x0.225+10x0.230) 0.000 0.000 0.000 0.000 0.000
MINI HYDEL-IPPS 497.710 0.000 166.733 166.733 3.350
CO-GEN/CAPTIVE 1.860 0.000 0.480 0.480 2.581
BIOMASS 0.000 0.000 0.000 0.000 0.000
SOLAR-IPP 206.500 0.000 104.902 104.902 5.080
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 0.000 0.000 0.000 0.000 0.000
TOTAL RENEWABLE SOURCES 1039.920 0.000 391.967 391.967 3.769
TRANSMISSION CHARGES
PGCIL CHARGES 79.355 79.355 0.450
KPTCL CHARGES 251.830 251.830 0.410
SLDC & POSOCO CHARGES 2.020 2.020 0.0003
TOTAL INCLUDING, TRANSMISSION & LDC CHARGES 8.195 6135.001 474.961 1951.789 2426.750 3.956
ccxxviii
With ref. to
ACS
Approved as per RST
Sales-M U Revenue
Rs. crores
Sales-M U Revenue
Rs. crores
1
LT-1[fully subsidised
by GoK]*
Bhagya Jyothi/Kutir Jyothi
14.26 9.17 14.59 8.77 6.01 0.00 -2.42
2
LT-2(a)(i) Dom. / AEH - Applicable to City
Municipal Corporations areas and
all area under Urban Local 729.42 430.03 729.51 391.94 5.37 -10.61 -12.78
3
LT-2(a)(ii) Dom. / AEH - Applicable to areas
under Village Panchayats 654.37 323.95 654.74 283.76 4.33 -27.89 -29.64
4
LT-2(b)(i) Pvt. Educational Institutions
Applicable to all areas of Local
Bodies including City Corporations 8.88 7.54 8.60 6.27 7.29 21.27 18.32
5
LT-2(b)(ii) Pvt. Educational Institutions
Applicable to areas under Village
Panchayats 4.77 3.77 4.34 2.93 6.75 12.40 9.66
6
LT-3(i) Commercial - Applicable in areas
under all ULBs including City
Corporations. 228.66 212.18 230.65 193.73 8.40 39.75 36.35
7
LT-3(ii) Commercial - Applicable to areas
under Village Panchayats 110.23 93.06 111.06 85.62 7.71 28.28 25.16
8 LT-4(a)* IP<=10HP 1284.26 676.81 1217.69 575.97 4.73 -21.30 -23.21
9 LT-4(b) IP>10HP 1.35 0.64 0.89 0.46 5.17 -14.00 -16.10
10
LT-4 (c) (i) Pvt. Nurseries, Coffee & Tea
Plantations of sanctioned load of
10 HP & below 2.43 1.21 1.92 0.96 5.00 -16.98 -19.00
11
LT-4 (c) (ii) Pvt. Nurseries, Coffee & Tea
Plantations of sanctioned load of
above 10 HP 3.72 1.96 2.89 1.70 5.88 -1.99 -4.37
12 LT-5 (a) LT Industrial 137.89 103.46 54.35 40.53 7.46 24.09 21.06
LT-5 (b) LT Industrial 0.00 0.00 81.53 56.92 6.98 16.17 13.34
13 LT-6 Water supply 122.68 57.32 118.39 50.25 4.24 -29.38 -31.10
14 LT-6 Public lighting 61.47 42.42 63.10 37.04 5.87 -2.33 -4.71
15 LT-7 Temporary supply 19.12 27.07 19.12 27.96 14.62 143.32 137.39
3383.51 1990.59 3313.37 1764.81 5.33 -11.38 -13.53
1 HT-1 Water supply & sew erage 87.38 49.47 87.38 43.20 4.94 -17.73 -13.41 -9.11
2 HT-2(a) Industrial - 800.82 621.85 805.52 583.21 7.24 20.47 26.80 33.09
3 HT-2(b) Commercial 156.71 147.94 168.53 148.41 8.81 46.53 54.23 61.88
4 HT-2 ( c)(i)
Govt./ Aided Hospitals &
Educational Institutions 59.47 44.93 59.52 39.05 6.56 9.15 14.89 20.59
5 HT-2 ( c)(ii)
Hospitals and Educational
Institutions other than covered
under HT-2( c) (i) 120.90 102.10 120.85 92.70 7.67 27.64 34.35 41.01
6
HT-3(a)(i) Lift Irrigation - Applicable to lif t
irrigation schemes under Govt
Dept, / Govt. ow ned Corporations 22.90 11.71 22.83 4.57 2.00 -66.69 -64.94 -63.20
7
HT-3(a)(ii) Lift Irrigation - Applicable to
Private lif t irrigation schemes Lift
Irrigaton societies on
urban/express feeders 0.07 0.02 0.07 0.01 0.00 0.00 0.00 0.00
8HT-3(a)(iii) LI schemes other than those
covered under HT 3(a)(ii) 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00
9
HT - 3b Irrigation & Agriculture
Farms,Govt. Horticultural Farms,
Pvt.Horticulture Nurseries,
Coffee, Tea,Cocanut & Arecanut
Plantations 0.25 0.16 0.32 0.13 4.06 -32.40 -28.85 -25.32
10 HT-4 Residential Apartments -Colonies 14.98 10.31 15.56 9.69 6.23 3.67 9.12 14.53
11 HT-5 Temporary supply 7.20 7.82 7.20 7.72 10.72 78.30 87.67 96.98
1270.68 996.31 1287.79 928.69 7.21 19.99 26.30 32.57
4654.19 2986.90 4601.16 2693.50 5.85 -2.60
52.93 80.44
42.91 10.68
80.84 50.69
4777.94 3090.52 4611.84 2773.95 6.01 0.00
* These categories are subsidised by GoK. In case subsidy is not released by the Gok in advance,MESCOM
shall raise demand & collect CDT of Rs.6.01 unit by BJ/KJ & Rs.4.73/unit from IP set Consumers.
* Voltage w ise cost of supply per unit to: LT Rs: 6.16, HT Rs.5.71 & EHT- Rs.5.44 Page - 218
PROPOSED AND APPROVED REVENUE AND REALISATION AND LEVEL OF CROSS SUBSIDY FOR FY-17 OF MESCOM
Annexure- III
KPC/ Wheeled
Description
Grand Total
Proposed Supply to MSEZ
Misc. Revenue
Level o f
C ro ss Subsidy
in %
LT - TOTAL
HT - TOTAL
With ref. to voltage wise
COS*
Level of
Cross
Subsidy in %
(EHT)
TOTAL
Average
Realisation
in Rs. Per
Kwh
Proposed by M ESCOM
Sl No Category
Level of
Cross
Subsidy in
% (LT&HT)
ccxxix
ANNEX - IV
ELECTRICITY TARIFF - 2017
K.E.R.C. ORDER DATED: 30th March 2016
Effective for the Electricity consumed from the first meter
reading date falling on or after 01.04.2016
Mangalore
Electricity Supply Company Ltd.,
ccxxx
ELECTRICITY TARIFF-2017
GENERAL TERMS AND CONDITIONS OF TARIFF:
(APPLICABLE TO BOTH HT AND LT)
1. Supply of power is subject to execution of agreement by the
Consumer in the prescribed form, payment of prescribed
deposits and compliance of terms and conditions as stipulated
in the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka and Regulations issued
under Electricity Act 2003 at the time of supply and continuation
of power supply is subject to compliance of the said Conditions
of Supply / Regulations as amended from time to time.
2. The tariffs are applicable to only single point of supply unless
otherwise approved by the Licensee.
3. The Licensee does not bind himself to energize any installation,
unless the Consumer guarantees the minimum charges. The
minimum charge is the power supply charges in accordance
with the tariff in force from time to time. This shall be payable by
the Consumer until power supply agreement is terminated,
irrespective of the installation being in service or under
disconnection.
4. The tariffs in the schedule are applicable to power supply within
the Karnataka State.
5. The tariffs are subject to levy of Tax and Surcharges thereon as
may be decided by the State Government from time to time.
6. For the purpose of these tariffs, the following conversion table would
be used:
1 HP=0.746 KW. 1HP=0.878 KVA.
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. Use of power for temporary illumination in the premises already having
permanent power supply for marriages, exhibitions in hotels, sales
promotions etc., is limited to sanctioned load at the applicable
permanent power supply tariff rates. Temporary tariff rates will be
applicable in case the load exceeds sanctioned load as per the
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka.
9. No LT power supply will be given where the requisitioned load is 50
KW/67 HP and above. This condition does not apply for installations
ccxxxi
serviced under clause 3.1.1 of K.E.R.C. (Recovery of Expenditure for
supply of Electricity) Regulations, 2004 and its amendments from time
to time. The applicant is however at liberty to avail HT supply for lesser
loads. The minimum contract demand for HT supply shall be 25 KVA or
as amended from time to time by the Licensee with the approval of
KERC.
10. The Consumer shall not resell electricity purchased from the Licensee
to a third party except -
(a) Where the Consumer holds a sanction or a tariff provision for
distribution and sale of energy,
(b) Under special contract permitting the Consumer for resale of
energy in accordance with the provisions of the contract.
11. Non-receipt of the bill by the Consumer is not a valid reason for non-
payment. 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
1 Cheque amount upto
Rs. 10,000/-
5% of the amount subject to a
minimum of Rs100/-
2 Cheque amount of
Rs. 10,001/- and upto
Rs. 1,00,000/-
3% of the amount subject to a
minimum of Rs500/-
3 Cheque amount above
Rs. 1 Lakh:
2% of the amount subject to a
minimum of Rs3000/-
13. In respect of power supply charges paid by the Consumer through
money order, Cheque /DD sent by post, receipt will be drawn and the
Consumer has to collect the same.
14. In case of any belated payment, simple interest at the rate of 1 % per
month will be levied on the actual No. of days of delay subject to a
minimum of Re.1/- for LT installation and Rs.100/- for HT installation. No
interest is however levied for arrears of Rs.10/- and less.
15. All LT Consumers, except Bhagya Jyothi and Kutir Jyothi Consumers,
shall provide current limiter/Circuit Breakers of capacity prescribed by
the Licensee depending upon the sanctioned load.
16. All payments made by the Consumer will be adjusted in the following
order of priority: -
(a) Interest on arrears of Electricity Tax
(b) Arrears of Electricity Tax
(c) Arrears of Interest on Electricity charges
(d) Arrears of Electricity charges
(e) Current month’s dues
17. For the purpose of billing,
(i) the higher of the rated load or sanctioned load in respect of LT
installations which are not provided with Electronic Tri-Vector
meter.
ccxxxii
(ii) sanctioned load or MD recorded, whichever is higher, in respect
of installations provided with static meters or Electronic Tri-Vector
meter will be considered.
Penalty and other clauses shall apply if sanctioned load is
exceeded.
18. The bill amount shall be paid within 15 days from the date of presentation
of the bill failing which the interest becomes payable.
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. In case of multiple connections in a building, all the meters shall be
provided at one easily accessible place in the ground floor.
21. Reconnection charges: The following reconnection charges shall be
levied in case of disconnection and included in the monthly bill.
For reconnection of:
a Single Phase Domestic installations
under Tariff schedule LT 1 & LT2 (a)
Rs. 20 /- per
installation
b Three Phase Domestic installations
under Tariff schedule LT2 (a) and
Single Phase Commercial & Power
installations.
Rs. 50/- per
installation
c All LT installations with 3 Phase supply
other than LT2 (a)
Rs. 100/- per
installation
d All HT& EHT installations Rs.500/- per
Installation.
22. Revenue payments up to and inclusive of Rs.10, 000/- shall be made by
cash or cheque or D.D and payments above Rs.10, 000/- shall be made
by cheque or D.D only. Payments under other heads of account shall be
made by cash or D.D up to and inclusive of Rs.10, 000/- and
payment above Rs.10, 000/-shall be by D.D only.
Note: The Consumers can avail the facility of payment of monthly power
supply bill through Electronic clearing system (ECS)/ Credit cards /
on line E-Payment @ www.billjunction.com at counters wherever
such facility is provided by the Licensee in respect of revenue
payments up to the limit prescribed by the RBI.
23. For the types of installations not covered under any Tariff schedules, the
Licensee is permitted to classify such installations under appropriate Tariff
schedule under intimation to the K.E.R.C.
24. Seasonal Industries
Applicable to all Seasonal Industries
i) The industries that intend to avail this benefit shall have Electronic Tri-
Vector 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
concerned O&M Division of the Licensee as per the request of the
Consumer and will continue from year to year unless otherwise
ccxxxiii
altered. The Consumer shall give a clear one month’s notice in
case he intends to change his ‘ working season’.
iii) The consumption during any month of the declared off-season shall
not be more than 25% of the average consumption of the previous
working season.
iv) The ‘Working season’ months and ‘off-season’ months shall be full–
calendar months. If the power availed during a month exceeds
the allotment for the ‘off-season’ month, it shall be taken for
calculating the billing demand as if the month is the ‘working
season’ month.
v) The Consumer can avail the facility of ‘off-season’ up to six months
in a calendar year not exceeding in two spells in that year. During
the ‘off-season period, the Consumer may use power for
administrative offices etc., and for overhauling and repairing plant
and machinery.
25 Whether an institution availing Power supply can be considered as
charitable or not will be decided by the Licensee on the
production of certificate Form-12 A from the Income Tax
department.
26 Time of the Tariff (ToD)
The Commission as decides in the earlier tariff order, decide to
continue compulsory Time of Day Tariff for HT2 (a) and HT2 (b) and
HT2(c) consumers with a contract demand of 500 KVA and above.
Further, the optional ToD would continue as existing earlier for HT2(a),
HT2(b) and HT2(c) consumers with contract demand of less than 500
KVA. Also the ToD for HT1 consumers on optional basis would continue
as existing earlier. Details of ToD tariff are indicated under the
respective tariff category.
27. 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. The Commission, in its Tariff Order 2002, has accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. In view of issue of the G.O No.CI2 BIF 2010, dated
21.10.2010, the Commission has accorded approval to ESCOMs for
implementation of the reliefs extended to sick industrial units for their
revival / rehabilitation on the basis of the orders issued by the
Commissioner for Industrial Development and Director of Industries &
Commerce, Government of Karnataka.
ccxxxiv
28. Incentive for Prompt Payment / Advance Payment: An incentive at the
rate of 0.25% of such bill shall be given to the following Consumers by way
of adjustment in the subsequent month’s bill:
(i) In all cases of payment through ECS.
(ii) And in the case of monthly bills exceeding Rs.1, 00,000/-
(Rs. one lakh), if the payment is made 10 days in
advance of the due date.
(iii) Advance Payment exceeding Rs.1000/- made by the
Consumers towards monthly bills
29. Conditions of Supply of Electricity of the Distribution Licensees in the State
of Karnataka and amendments issued thereon from time to time 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---
ELECTRICITY TARIFF - 2017
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.
ccxxxv
ELECTRICITY TARIFF - 2017
PART-1
HIGH TENSION SUPPLY
Applicable to Bulk Power Supply at Voltages of 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.
CONDITIONS APPLICABLE TO BILLING OF HT INSTALLATIONS:
1. Billing Demand
A) The billing demand during unrestricted period shall be the
maximum demand recorded during the month or 75% of the
CD, whichever is higher.
B) When the Licensee has imposed demand cut of 25% or less, the
conditions stipulated in (A) shall apply.
C) When the demand cut is in excess of 25%, the billing demand
shall be the maximum demand recorded or 75% of the
restricted demand, whichever is higher.
D) If at any time the maximum demand recorded exceeds the CD
or the demand entitlement, or opted demand entitlement
during the period of restrictions, if any, the Consumer shall pay
for the quantum of excess demand at two times the normal rate
per KVA per month as deterrent charges as per Section 126(6)
of Electricity Act 2003. For over drawal during the billing period,
the penalty shall be two times the normal rate.
E) During the periods of disconnection, the billing demand shall be
75% of CD, or 75% of the demand entitlement that would have
been applicable, had the installation been in service, whichever
is less. This provision is applicable only, if the installation is under
disconnection for the entire billing month.
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
ccxxxvi
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.
(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
ccxxxvii
The above rebate will be allowed in respect of all the installations of
the above voltage class, including the existing installations, and also
for installations converted from 13.2 KV and below to 33 KV and above
and also for installations converted from 33/66 KV to 110/220 KV, from
the next meter reading date after conversion / service / date of
notification of this Tariff order, as the case may be. The above rebate is
applicable only on the normal energy consumed by the Consumer,
including the consumption under TOD Tariff, and is not applicable on
any other energy allotted and consumed, if any, viz.,
i) Wheeled Energy.
ii) Any energy, including the special energy allotted over and above
normal entitlement.
iii) Energy drawal under special incentive scheme, if any.
The above rebate is not applicable for Railway Traction.
4. In respect of Residential Quarters/ Colonies availing Bulk power supply
by tapping the main HT supply, the energy consumed by such Colony
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 HT-
4 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. 24 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.
ccxxxviii
TARIFF SCHEDULE HT 1
Applicable to Water Supply, Drainage / Sewerage water treatment plant and
Sewerage Pumping installations, belonging to Karnataka 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
TOD Tariff at the option of the Consumer Time of Day Increase + / reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
Note: Energy supplied to residential quarters availing bulk supply by
the above category of Consumer, shall be metered separately
at a single point, and the energy consumed shall be billed at HT-
4 Tariff. No reduction in the demand recorded in the main HT
meter will be allowed.
TARIFF SCHEDULE HT-2(a)
Applicable to Industries, Factories, Workshops, Research &
Development Centres, Industrial Estates, Milk dairies, Rice Mills, Phova
Mills, Roller Flour Mills, News Papers, Printing Press, Railway
Workshops/KSRTC Workshops/ Depots, Crematoriums, Cold Storage,
Ice & Ice-cream mfg. Units, Swimming Pools of local bodies, Water
Supply Installations of KIADB and other industries, all Defence
Establishments. Hatcheries, Poultry Farm, Museum, Floriculture, Green
House, Bio Technical Laboratory, Hybrid Seeds processing Units, Stone
Crushers, Stone cutting, Bakery Product Manufacturing Units, Mysore
Palace illumination, Film Studios, Dubbing Theatres, Processing, Printing,
Developing and Recording Theaters, Tissue Culture, Aqua Culture,
Prawn Culture, Information Technology Industries engaged in
development of Hardware & Software, Information Technology (IT)
enabled Services / Start-ups (As defined in GOI notification dated
17.04.2015)/ Animation / Gaming / Computer Graphics as certified by
the IT & BT Department of GOK/GOI, Drug Mfg. Units, Garment Mfg.
Units, Tyre retreading units, Nuclear Power Projects, Stadiums
maintained by Government and local bodies, also Railway Traction,
Effluent treatment plants and Drainage water treatment plants owned
other than by the local bodies, LPG bottling plants, petroleum pipeline
projects, Piggery farms, Analytical Lab for analysis of ore metals, Saw
ccxxxix
Mills, Toy/wood industries, Satellite communication centers, and
Mineral water processing plants / drinking water bottling plants.
RATE SCHEDULE
HT-2(a): Applicable to all areas of MESCOM.
.Demand charges Rs.180/kVA of billing demand/month
Energy charges
For the first one lakh units 620 paise per unit
For the balance units 660 paise per unit
Railway Traction and Effluent Treatment Plants
Demand charges Rs.190/kVA of billing demand/month
Energy Charges 590 paise per unit for all the units
TARIFF SCHEDULE HT-2(b) Applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging, Amusement Parks, Telephone Exchanges, Race Course, All Clubs, T.V. Station, All India Radio, Railway Stations, Air Port, KSRTC bus stations, All offices, Banks, Commercial Multi-storied buildings. APMC Yards, Stadiums other than those maintained by Government and Local Bodies, Construction power for irrigation, Power Projects and Konkan Railway Project, Petrol / Diesel and Oil storage plants, I.T. based medical transcription centers, telecom, call centers, BPO/KPO.
RATE SCHEDULE
HT-2 (b): Applicable to all areas of MESCOM
Energy charges
For the first two lakh units 785 paise per unit
For the balance units 815 paise per unit
TARIFF SCHEDULE HT-2(c)
RATE SCHEDULE
HT-2 (c) (i)- Applicable to Government Hospitals, Hospitals run by Charitable
Institutions, ESI hospitals, Universities and Educational Institutions belonging
to Government and Local bodies, Aided Educational Institutions and Hostels
of all Educational Institutions. Demand charges Rs.180/kVA of billing demand /month
Energy charges
For the first one lakh units 600 paise per unit
For the balance units 650 paise per unit
RATE SCHEDULE
HT-2 (c) (ii) - Applicable to Hospitals and Educational Institutions other than
those covered under HT-2 (c)(i).
Demand charges Rs.180 /kVA of billing demand/month
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.
Demand charges Rs.200 /kVA of billing demand/month
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1. Energy supplied may be utilized for all purposes associated
with the working of the installation such as offices, stores,
canteens, yard lighting, water pumping and
advertisement within the premises.
2. Energy can be used for construction, modification and
expansion purposes within the premises.
TOD Tariff applicable to HT-2(a), HT-2(b) and HT-2(c) category.
Time of Day Increase + / reduction (-) in energy charges
over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
TARIFF SCHEDULE HT-3 (a)
Applicable to Lift irrigation Schemes/ Lift irrigation societies,
RATE SCHEDULE
HT-3 (a)(i): Applicable to LI schemes under Govt. Departments/ Govt.
owned Corporations
Energy charges/ Minimum Charges 200 paise per unit subject to an
annual minimum of Rs.1120 per
HP/Annum
HT-3(a)(ii): Applicable to Private LI schemes and Lift Irrigation societies:
Connected to Urban/Express feeders
Fixed Charges Rs.40 /HP/ per month of sanctioned
load
Energy charges 200 paise/unit
HT-3(a)(iii): Applicable to Private LI schemes and Lift Irrigation societies
other than those covered under HT-3 (a)(ii)
Fixed Charges Rs.20 /HP/ per month of sanctioned
load
Energy charges 200 paise/unit
TARIFF SCHEDULE HT-3 (b)
HT-3 (b): Applicable to Irrigation and Agricultural Farms, Government
Horticultural Farms, Private Horticulture nurseries, Coffee, Tea,
Rubber, Coconut & Arecanut Plantations. 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 power supply
independently or by tapping the main H.T. line. Power supply can be used for
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residences, theatres, shopping facility, club, hospital, guest house, yard/street
lighting, canteen located within the colony.
RATE SCHEDULE
Applicable to all areas
Demand charges Rs.110/- per KVA of billing demand/
month
Energy charges 585 paise/unit
NOTE: (1) In respect of residential colonies availing power supply by tapping
the main H.T. supply, the energy consumed by such colony loads
metered at a single point, is to be billed at the above energy
rate. No reduction in the recorded demand of the main H.T.
supply is allowed.
(2) Energy under this tariff may be used for commercial and other
purposes inside the colonies for installations such as, Canteens,
Clubs, Shops, Auditorium etc., provided, this commercial load is
less than 10% of the Contract demand. [
(3) In respect of Residential Apartments, availing HT Power supply
under HT-4 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 the predominant
Consumer category. TARIFF SCHEDULE HT-5
Tariff applicable to sanctioned load of 67 HP and above for
hoardings and advertisement boards and construction power for
industries excluding those category of consumers covered under
HT2(b) Tariff schedule availing power supply for construction
power for irrigation, power projects and Konkan Railway Projects
and also applicable to power supply availed on temporary basis
with the contract demand of 67 HP and above of all categories.
HT – 5 – Temporary supply
RATE SCHEDULE
67 HP and above:
Fixed charges /
Demand Charges
Rs220/HP/month for the entire sanction load /
contract demand
Energy Charges 950 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main shall
be arranged through a pre–paid 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 license for duration
less than one year.
3. All the conditions regarding temporary power supply as stipulated in Clause
12 the Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka shall be complied with before service.
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ELECTRICITY TARIFF-2017
PART-II
LOW TENSION SUPPLY
(400 Volts Three Phase and
230Volts Single Phase Supply)
MESCOM
ELECTRICITY TARIFF - 2017
PART-II
LOW TENSION SUPPLY (400 Volts Three Phase and
230Volts Single Phase Supply) CONDITIONS APPLICABLE TO BILLING OF LT INSTALLATIONS:
1. In case of LT Industrial / Commercial Consumers, Demand based Tariff at
the option of the Consumer, can be adopted. The Consumer is permitted
to have more connected load than the sanctioned load. The billing
demand will be the sanctioned load, or Maximum Demand recorded in the
Tri-Vector Meter during the month, whichever is higher. If the Maximum
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Demand recorded is more than the sanctioned load, penal charges at two
times the normal rate shall apply.
2. Use of power within the Consumer premises for bonafide temporary
purpose is permitted subject to the conditions that, total load of the
installation on the system does not exceed the sanctioned load.
3. Where it is intended to use power supply temporarily, for floor polishing and
such other portable equipments, in a premises having permanent power
supply, such equipments shall be provided with earth leakage circuit
breakers of adequate capacity.
4. The laboratory installations in educational institutions are allowed to install
connected machineries up to 4 times the sanctioned load. The fixed
charges shall however be on the basis of sanctioned load.
5.Besides combined lighting and heating, electricity supply under tariff
schedules LT2 (a) & LT2 (b), can be used for Fans, Televisions, Radios,
Refrigerators and other household appliances, including domestic water
pumps and air conditioners, provided, they are under single meter
connection. If a separate meter is provided for Air-conditioner load, the
Consumer shall be served with a notice to merge this load and to have a
single meter for the entire load. Till such time, the air conditioner load will be
billed under Commercial Tariff.
6. Bulk LT supply
If power supply for lighting / combined lighting & heating {LT 2(a)}, is availed
through a bulk Meter for group of houses belonging to one Consumer, (ie,
Where bulk LT supply is availed), the billing for energy shall be done at the
slab rate for energy charges matching the consumption obtained by
dividing the bulk consumption by number of houses. In addition, fixed
charges for the entire sanctioned load shall be charged as per Tariff
schedule.
7. A rebate of 25 paise per unit will be given for the House/ School/Hostels
meant for Handicapped, Aged, Destitute and Orphans, Rehabilitation
Centres under Tariff schedule LT 2(a).
8. SOLAR REBATE: A rebate of 50 paise per unit of electricity consumed subject
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.
9. A rebate of 20% on fixed charges and energy charges will be allowed in
the monthly bill in respect of public Telephone booths having STD/ISD/ FAX
facility run by handicapped people, under Tariff schedule LT 3.
10. 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.
11. Power Factor (PF):
Capacitors of appropriate capacity shall be installed in accordance with
Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees
in the State of Karnataka, in case of installations covered under Tariff
category LT 3, LT4, LT 5, & LT 6, where motive power is involved.
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(i) 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.
(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) 0.8449 to be rounded off to 0.84
(b) 0.8451 to be rounded off to 0.85
(iii) In respect of Electronic Tri-Vector meters, the recorded average PF
over the billing period shall be considered for billing purposes.
(iv) During inspection, if the capacity of capacitors provided is found to be
less than what is stipulated in Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka, a surcharge of 30
Paise/unit will be levied in the case of installations covered under Tariff
categories LT 3, LT 5, & LT 6 where motive power is involved.
(v) In the case of installations without electronic Tri-vector meters even
after providing capacitors as recommended in Clause 23.01 and 23.03
of Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka, if during any periodical or other testing / rating of
the installation by the Licensee, the PF of the installation is found to be
lesser than 0.85, a surcharge determined as above shall be levied from
the billing month following the expiry of Three months’ notice given by
the Licensee, till such time, the additional capacitors are installed and
informed to the Licensee in writing by the Consumer. This is also
applicable for LT installations provided with electronic Tri-vector meters.
12. All new IP set applicants shall 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 before taking service. [
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
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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
LT Industrial Tariff (Only Energy charges) during the period of alternative
use. However, if the energy used both for IP Set and alternate operation is
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.
19. The IP Consumer is permitted to use energy for lighting the pump house
and well limited to two lighting points of 40 Watts each.
20. Billing shall be made at least once in a quarter year for all IP sets.
21. In case of welding transformers, the connected load shall be taken as:
a) Half the maximum capacity in KVA as per the nameplate specified
under IS: 1851
OR
b) Half the maximum capacity in KVA as recorded during the rating by
the Licensee, whichever is higher.
22. Electricity under Tariff LT 3 / LT 5 can also be used for Lighting, Heating and
Air-conditioning, Yard-Lighting, water supply in the premises of
Commercial / Industrial Units respectively.
23. Fluorescent fittings shall be provided by the Licensee for the Streetlights in
the case of villages covered under the Licensee’s electrification
programme for initial installation.
In all other cases, the entire cost of fittings including Brackets, Clamps,
etc., and labour for replacement, additions and modifications shall be met
by the organizations making such a request. Labour charges shall be paid
at the standard rates fixed by the Licensee for each type of fitting.
24. Lamps, fittings and replacements for defective components of fittings shall
be supplied by the concerned Village Panchayaths, Town Panchayaths or
Municipalities for replacement.
25. Fraction of KW / HP shall be rounded off to the nearest quarter KW / HP for
purpose of billing and the minimum billing being for 1 KW / 1HP in respect
of all categories of LT installations including I.P. sets. In the case of street
lighting installations, fraction of KW shall be rounded off to nearest quarter
KW for the purpose of billing and the minimum billing shall be quarter KW.
26. Seasonal Industries.
a) The industries who intend to utilize seasonal industry benefit, shall
comply with the conditionalities under Para no. 24 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.
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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.
TARIFF SCHEDULE LT-1
LT-1: Applicable to installations serviced under Bhagya Jyothi and Kutira
Jyothi (BJ/KJ) schemes.
RATE SCHEDULE
Energy charges
(including recovery towards
service main charges)
Nil*
Fully subsidized by the GOK
Commission Determined Tariff for the above category i.e., LT-1 is Rs.6.01 per unit.
*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.6.01 per unit subject to monthly minimum of Rs.
30/- per Installation per month shall be demanded and collected from these
Consumers.
Note: If the consumption exceeds 18 units per month or any BJ/KJ installation
is found to have more than one out let, it shall be billed as per Tariff
Schedule LT 2(a).
TARIFF SCHEDULE LT-2(a)
Applicable to lighting/combined lighting, heating and motive Power
installations of residential houses and also to such houses where a portion is
used by the occupant for (a) Handloom weaving (b) Silk rearing and reeling
and artisans using motors up to 200 watts (c) Consultancy in (i) Engineering
(ii) Architecture
(iii) Medicine (iv) Astrology (v) Legal matters (vi) Income tax (vii) Chartered
Accountants (d) Job typing (e) Tailoring (f) Post Office (g) Gold
smithy
(h) Chawki rearing (i) Paying guests/Home stay guests (j) personal Computers
(k) Dhobis (l) Hand operated printing press (m) Beauty Parlours (n) Water
Supply installations, Lift which is independently serviced for bonafide use of
residential complexes/residence, (o) Farm Houses and yard lighting limiting to
120 Watts, (p) Fodder Choppers & Milking Machines with a connected load
up to 1 HP.
Also applicable to the installations of (i) Hospitals, Dispensaries, Health
Centers run by State/Central Govt. and local bodies. (ii) Houses, schools and
Hostels meant for handicapped, aged destitute and orphans (iii)
Rehabilitation Centres run by charitable institutions, AIDS and drug addicts
Rehabilitation Centres (iv) Railway staff Quarters with single meter (v) fire
service stations.
It is also applicable to the installations of (a) Temples, Mosques, Churches,
Gurudwaras, Ashrams, Mutts and religious/Charitable institutions (b) Hospitals,
Dispensaries and Health Centres run by Charitable institutions including X-ray
units (c) Jails and Prisons (d) Schools, Colleges, Educational institutions run by
State/Central Govt.,/Local Bodies (e) Seminaries (f) Hostels run by the
Government, Educational Institutions, Cultural, Scientific and Charitable
Institutions (g) Guest Houses/Travelers Bungalows run in Government buildings
or by State/Central Govt./Religious/Charitable institutions (h) Public libraries
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(i) Silk rearing (j) Museums (k) Installations of Historical Monuments of
Archeology Departments(l) Public Telephone Booths without STD/ISD/FAX
facility run by handicapped people (m) Sulabh / Nirmal Souchalayas (n)
Viswa Sheds having Lighting Loads only.
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
consumption)
300 paise/unit
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
consumption)
290 paise/unit
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)
Applicable to the installations of Private Professional and other Private
Educational Institutions including aided, unaided institutions, Nursing
Homes and Private Hospitals having only lighting or combined lighting
& heating, and motive power. [[[[[
RATE SCHEDULE
LT 2 (b) (i): Applicable to City Municipal Corporations and all other urban
local bodies
Fixed charges Rs.45 Per KW subject to a minimum of Rs.75 per
month
Energy charges
0 to 200 units 625 paise /unit
Above 200 units 745 paise /unit
LT-2(b)(ii): Applicable in Areas under Village Panchayats
Fixed charges Rs.35 per KW subject to a minimum of Rs.60 per
month
Energy charges
0 to 200 units 570 paise /unit
Above 200 units 690 paise /unit
Note: Applicable to LT-2 (a), LT-2 (b) Tariff Schedules.
1 A rebate of 25 paise. Per unit shall be given for installation of a house/
School/ Hostels meant for Handicapped, Aged, Destitute and Orphans,
Rehabilitation Centres run by Charitable Institutions.
2 (a) Use of power within the consumer’s 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.
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(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.
3 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.
4. 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.
5. 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 Exchanges. T.V.Stations,
Microwave Stations, All India Radio, Dish Antenna, Public Telephone Booths/
STD, ISD, FAX Communication Centers, Stud Farms, Race Course, Ice Cream
Parlours, Computer Centres, Photo Studio / colour Laboratory, Xerox Copiers,
Railway Installation excepting Railway workshop, KSRTC Bus Stations
excepting Workshop, All offices, Police Stations, Commercial Complexes, Lifts
of Commercial Complexes, Battery Charging units, Tyre Vulcanizing Centres,
Post Offices, Bakery shops, Beauty Parlours, Stadiums other than those
maintained by Govt. and Local Bodies. It is also applicable to water supply
pumps and street lights not covered under LT 6, Cyber cafés, Internet surfing
cafés, Call centers, I.T. based medical transcription centers, Private Hostels
not covered under LT -2 (a), Paying guests accommodation provided in an
independent / exclusive premises.
RATE SCHEDULE
LT-3 (i): Applicable to City Municipal Corporations and all other urban local
bodies.
Fixed charges Rs.50 per KW per month
Energy charges
For 0 - 50 units 715 paise /unit
Above 50 units 815 paise /unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.65 per KW
Energy charges As above
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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 765 paise /unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.55 per KW per month
Energy charges As above
Note: 1. Besides Lighting, Heating and Motive power, Electricity supply under
this Tariff can also be used for Yard lighting/ air Conditioning/water
supply in the premises.
2. The semi-permanent Cinemas should have semi-Permanent
Structure with permanent wiring and licence for a duration of not
less than one year.
3. Touring Cinemas having an outfit comprising Cinema apparatus
and accessories taken from place to place for exhibition of
cinematography film and also outdoor shooting units shall be billed
under LT- 7 Tariff.
4. A rebate of 20% on fixed charges and energy charges shall be
allowed in the monthly bill in respect of telephone Booths having
STD / ISD/FAX facility run by handicapped people.
5. Demand based Tariff at the option of the Consumer can be
adopted as per Para 1 of the conditions applicable to LT
installations.
TARIFF SCHEDULE LT-4 (a), LT-4 (b) & LT-4(c)
Applicable to (a) Agricultural Pump Sets including Sprinklers (b) Pump sets
used in (i) Nurseries of forest and Horticultural Departments (ii) Grass Farms
and Gardens (iii) Plantations other than Coffee, Tea, Rubber and Private
Horticulture Nurseries
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TARIFF SCHEDULE LT-4 (a)
Applicable to I.P. Sets up to and inclusive of 10 HP
RATE SCHEDULE
Fixed charges Free
Energy charges
Commission Determined Tariff (CDT) for LT4 (a) category is 473 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 473 paise per unit shall be demanded
and collected from these Consumers.
Note: This Tariff is applicable for Coconut and Areca nut plantations
also.
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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.
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
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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 shop , 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, Recording
theatres, Dubbing Theatres and film studios, Agarbathi manufacturing unit.,
Water supply installations of KIADB & industrial units, Gem & Diamond cutting
Units, Floriculture, Green House, Biotech Labs., Hybrid seed processing units.
Information Technology industries engaged in development of hardware &
Software, Information Technology (IT) enabled Services / Start-ups (As defined
in GOI notification dated 17.04.2015)/ Animation / Gaming / Computer
Graphics as certified by the IT & BT Department of GOK/GOI, Silk filature units,
Aqua Culture, Prawn Culture, Brick manufacturing units, Silk / Cotton colour
dying, Stadiums maintained by Govt. and local bodies, Fire service stations,
Gold / Silver ornament manufacturing units, Effluent treatment plants,
Drainage water treatment plants, LPG bottling plants and petroleum pipeline
projects, Piggery farms, Analytical Lab. for analysis of ore metals, Satellite
communication centers, Mineral water processing plants / drinking water
bottling plants and soda fountain units.
Tariff for LT 5 :
Tariff for LT 5 (a):
Applicable to areas under Municipal Corporations
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
Month
i) Rs.30 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
iii) Rs.40 per HP for 40 HP & above but below 67 HP
iv) Rs.100 per HP for 67 HP & above
Demand based Tariff (optional)
Fixed
Charges per
Above 5 HP and less than 40
HP
Rs.50 per KW of billing
demand
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Month 40 HP and above but less
than 67 HP
Rs.65 per KW of billing
demand
67 HP and above Rs.150 per KW of billing
demand
ii) Energy Charges
Details Approved by the Commission
For the first 500 units 495 paise/unit
For the next 500 units 585 paise/ unit
For the balance units 615 paise/unit
Tariff for LT 5 (b):
Applicable to all areas other than those covered under LT-5(a)
i. Fixed charges
Fixed Charges
per Month
i) Rs.30 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
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
Above 5 HP and less than 40 HP Rs.50 per KW of billing demand
40 HP and above but less than
67 HP
Rs.65 per KW of billing demand
67 HP and above Rs.150 per KW of billing demand
iii. Energy Charges
0 to 500 units 485 paise/unit
501 to 1000 units 570 paise/unit
Above 1000 units 600 paise/unit
TOD Tariff applicable to LT-5: At the option of the Consumer
Time of Day Increase+ / reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
NOTE:
1. DEMAND BASED TARIFF
In the case of LT Industrial Consumers, Demand based Tariff at the option of
the Consumer can be adopted. The Consumer is permitted to have more
connected load than the sanctioned load. The billing demand will be the
sanctioned load or Maximum Demand recorded in the Tri-Vector Meter
during the month whichever is higher. If the Maximum Demand recorded is
more than the sanctioned load, penal charges at two times the normal rate
shall apply.
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2. Seasonal Industries: The industries which intend to utilize seasonal industry
benefit shall comply with the conditionalities under para no. 24 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 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
Lighting
450 paise/unit
TARIFF SCHEDULE LT-7
Temporary Supply and Permanent Supply to Advertising Hoardings
TARIFF SCHEDULE LT-7(a)
Applicable to Temporary Power Supply for all purposes.
LT 7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes.
Less than 67 HP:
Energy charges at 950 paise / unit
subject to a weekly minimum of Rs.170
per KW of the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the
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interest of public such as Police Canopy Direction boards, and other
sign boards sponsored by Private Advertising Agencies / firms on
permanent connection basis.
LT 7(b) Details Approved Tariff
Power supply on
permanent
connection basis
Less than 67 HP:
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 pre–paid 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.
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