t p fy 2015-16 - madhya pradesh electricity regul€¦ · annual revenue requirement and tariff...

ANNUAL REVENUE REQUIREMENT

AND

TARIFF PROPOSAL PETITION

FOR

FY 2015-16

Submitted By:

Madhya Pradesh Power Management Company Limited Shakti Bhawan, Vidyut Nagar, Jabalpur

Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited Block No. 7, Shakti Bhawan, Vidyut Nagar, Jabalpur

Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited GPH Compound, Pologround, Indore

Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited Bijlee Nagar Colony, Nishtha Parisar, Govindpura, Bhopal

BEFORE THE HON’BLE MADHYA PRADESH

ELECTRICITY REGULATORY COMMISSION, BHOPAL

Petition No. ________of 2014

(1) Madhya Pradesh Power Management Company Limited (MPPMCL)

Shakti Bhawan, Vidyut Nagar, Jabalpur (MP) --------- Petitioner

(2) Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (MPPoKVVCL)

Shakti Bhawan, Vidyut Nagar, Jabalpur (MP) --------- Petitioner

(3) Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (MPPaKVVCL)

GPH, Polo Ground, Indore (MP) --------- Petitioner

(4) Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL)

Nishtha Parisar, Bijlee Nagar, Govindpura, Bhopal (MP) --------- Petitioner

IN THE MATTER OF:

Filing of ARR application for the distribution and retail supply business for the FY 2015-16 under tariff

principles laid down in "The Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for

Determination of Tariff for supply and wheeling of Electricity and Methods and Principles o f Fixation of

Charges) Regulations, 2012 (RG -35 (I) of 2012)" by MPPMCL and MPPoKVVCL, MPPaKVVCL &

MPMKVVCL as the Distribution Licensees.

The Petitioners above respectfully submit as under:-

1. Madhya Pradesh Power Management Company Ltd., (hereinafter referred to as the 'Petitioner', MPPMCL, 'the

Company' or 'the Licensee'), is a Company incorporated under the Companies Act, 1956 and having its registered

office at Block No.11, Shakti Bhawan, Vidyut Nagar, Jabalpur.

2. Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd., (hereinafter referred to as the 'Petitioner', MPPKVVCL,

'the Company' or 'the Licensee' or ‘East Discom’), is a Company incorporated under the Companies Act, 1956 and

having its registered office at Block No.7, Shakti Bhawan, Vidyut Nagar, Jabalpur. The Petitioner is a deemed

licensee under the Fifth Proviso to Section 14 of the Electricity Act, 2003. The area of supply of the Petitioner

comprises Jabalpur, Rewa, Sagar and Shahdol Commissionary within the State of Madhya Pradesh ('MP').

3. Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd., (hereinafter referred to as the 'Petitioner',

MPPaKVVCL, 'the Company' or 'the Licensee' or ‘West Discom’ ), is a Company incorporated under the

Companies Act, 1956 and having its registered office at GPH, Polo Ground, Indore . The Petitioner is a deemed

licensee under the Fifth Proviso to Section 14 of the Electricity Act, 2003. The area of supply of the Petitioner

comprises Indore and Ujjain Commissionary within the State of Madhya Pradesh ('MP').

4. Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd. (MPMKVVCL), (hereinafter referred to as the

'Petitioner', MPMKVVCL, 'the Company' or 'the Licensee' or ‘Central Discom’), is a Company incorporated

under the Companies Act, 1956 and having its registered office at Nishtha Parisar, Bijlee Nagar Colony,

Govindpura, Bhopal. The Petitioner is a deemed licensee under the Fifth Proviso to Section 14 of the Electricity

ARR and Tariff Petition for FY 2015-16

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Act, 2003. The area of supply of the Petitioner comprises Bhopal, Gwalior, Hoshangabad and Chambal

Commissionary within the State of Madhya Pradesh ('MP').

5. The Government of Madhya Pradesh ('GoMP' or 'State Government'), vide an Order No. 3679-FRS-18-13-2002

dated 31st May, 2005, published in the gazette of Madhya Pradesh dated 31st May 2005, have restructured the

functions and undertakings of Generation, Transmission, Distribution and Retail Supply of electricity earlier

carried out by the Madhya Pradesh State Electricity Board ('MPSEB' or the 'Board') and transferred the same to five

Companies to function independently. The five Companies are as under: -

a) M.P. Power Generating Company Ltd., Jabalpur (MPPGCL)

b) M.P. Power Transmission Company Ltd., Jabalpur (MPPTCL)

c) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur (MPPoKVVCL)

d) M.P. Paschim Kshetra Vidyut Vitaran Company Ltd., Indore (MPPaKVVCL)

e) M.P.Madhya Kshetra Vidyut Vitaran Company Ltd. Bhopal (MPMKVVCL)

6. With effect from 1st June 2005, the Operation and Management Agreement that existed between Madhya Pradesh State

Electricity Board and the Five Companies came to end with the issue of the said Order dated 31-05-2005. The three

Discoms viz. MPPoKVVCL, Jabalpur, MPPaKVVCL, Indore and MPMKVVCL, Bhopal started functioning

independently as Distribution Licensees in their respective area of license and from the said date, they are no longer

operating as an agent of or on behalf of the Board, subject to Cash Flow Mechanism (CFM) provided in the said Order.

7. On June 3, 2006 GoMP, in exercise of its powers under Section 23 (Sub-section (1), (2) and (3)) and Section 56 (Sub-

section (2)) of Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 read with Section 131 (Sub-sections (1), (2), (5), (6)

and (7) of Electricity Act, 2003, effected the transfer of and vesting of the functions, properties, interests, rights and

obligations of MPSEB relating to the Bulk Purchase and Bulk Supply of Electricity in the State Government and

simultaneously re-transferred and re-vested the same to MP Power Trading Company Ltd. ('Tradeco' or 'MP Tradeco').

Since then, MP Tradeco is discharging the responsibilities of procurement of power in bulk and supplying to the three

Electricity Distribution Companies (DISCOMs), including the Petitioner herein. The transfer was affected through

"M.P. Electricity Reforms Transfer Scheme Rules 2006” (Transfer Scheme Rules) vide Notification No.3474

/FRS/17/XIII/2002 dtd 3rd June 2006 (Transfer Scheme Rules).

8. In accordance with GoMP decision, the name of MP Power Trading Company Ltd has been changed to MP Power

Management Company Ltd. MPPMCL is the holding Company of the three electricity distribution companies

(Discoms) of MP State, viz., M. P. Poorv Kshetra Vidyut Vitaran Company Ltd., M. P. Paschim Kshetra Vidyut

Vitaran Company Ltd. and M. P. Madhya Kshetra Vidyut Vitaran Company Ltd. The Petitioner has been vested with

several of functions and powers that were earlier vested with the erstwhile Madhya Pradesh State Electricity Board. The

Registrar of Companies MP has issued the Certificate of Incorporation Consequent upon Change of Name on

10.04.2012.

9. GoMP has entrusted the MPPMCL with the responsibility inter alia of representing the Discoms before the

Commission with regard to filing the tariff petition and facilitating all proceedings thereon. The Management and

Corporate functions agreement signed by the MPPMCL with the three Discoms of MP also provide for the same.

10. MPPMCL has signed “Management and Corporate Functions Agreement” on 5th June 2012, with the three Discoms of

the State, wherein it has been agreed that the Petitioner shall perform inter alia the following functions of common

nature for the Discoms:

In consultation with Discoms, undertake long-term/ medium-term/short-term planning and assessment of

the power purchase requirements for the three Discoms and explore opportunities for power procurement as

per the regulations of MPERC;

Allocation of power among the Discoms from the forthcoming projects as per retail tariff order and as per

the GoMP notification and further instructions in this regard;

Economic, reliable and cost effective power procurement of Short-term, Medium-term and Long-term and

sale of surplus power, if any, for the purpose of Banking / maximization of revenue;

Exploring opportunities for procurement of power on long-term and medium-term basis, procure power and


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finalizing Power Purchase Agreements (PPAs);

The expenses of MPPMCL have been considered to be included as part of power purchase cost of the

Discoms.

11. In the backdrop of the above facts and circumstances, the present application is being made by the MPPMCL along

with the three Distribution Companies of MP State under Section 61 and Section 62 (1) (d) of the Electricity Act 2003

for determination of the tariff for distribution and Retail Supply Business for the period FY 2015-16 following the

regulations laid down by the Hon’ble Commission.

12. While filing the present ARR under the prevailing Regulation, MPPMCL along with the Discoms has endeavored to

comply with the various legal and regulatory directions and stipulations applicable, including the directions given by

the Hon'ble Commission in the Business Rules of the Commission, the Guidelines, previous ARR and Tariff Orders

and the Madhya Pradesh Electricity Regulatory Commission (Terms & Conditions for determination of Tariff)

Regulation 2012 (hereinafter referred to as the “Regulations”).

13. It is submitted that as soon as the retail tariff order becomes applicable, the voltage level and consumer categorywise

cross subsidy surcharge, additional surcharge, wheeling charges and transmission charges in respect of open access

customers should also be notified and made effective from the tariff application date. It is therefore, prayed to kindly

issue the approach paper for determination of the voltage level and consumer categorywise cross subsidy surcharge,

additional surcharge, wheeling charges and transmission charges also along with the retail tariff order for open access

customers.

14. It is also submitted that the Petitioners have not separated the consumers, connected load, energy units sold and

projected revenue in the Franchisee areas of Sagar, Ujjain and Gwalior from their sales and revenue model. The

projections of these parameters have been done on the basis of most feasible growth rate out of Compounded Annual

Growth Rate (CAGR) for the last 3,2,1 years and corresponding period growth up to September 2014 as the consumers

in the franchisee area remain to be the consumers of the Distribution Licensee and not the Franchisee. The franchisee is

only a collection agent working on behalf of the Distribution Licensee and recovers charges from consumers at the

tariff determined by the Hon’ble MPERC. The revenue realized by the Distribution Licensee is completely in

accordance with the tariff determined by the Hon’ble MPERC. It is pertinent to mention here that this methodology of

considering the consumers of franchisee area as discoms’ consumer has a precedence in Case no. 63 of 2009 of

Maharashtra Electricity Regulatory Commission dated 7th January 2010.

15. This petition is filed on the basis of normative parameters as provided by Hon’ble MPERC in Regulation No.

3296/MPERC/2012 dated 29.11.2012 i.e MPERC (Terms and Conditions for Determination of Tariff for Supply and

Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations 2012. The Regulation does

not provide segregation of normative losses for the Distribution Licensees into voltage wise normative losses in respect

of technical and commercial losses. Therefore, the Petitioners face difficulty in segregation of normative losses in

voltage level wise technical and commercial losses.

The Hon’ble MPERC in the previous year’s filing has referred to an Appellate Tribunal for Electricity (APTEL)

judgment to determine the voltage level wise Cost of Supply in the state of MP. However, this judgment is to determine

the voltage level wise cross subsidy surcharge and not consumer tariff. In the present petition, the Petitioners have

proposed consumer category wise tariff on the basis of Average Cost of Supply, which is in line with the National

Tariff Policy 2006. The Hon’ble Commission is requested to determine the voltage level and consumer category wise

cross subsidy surcharge on the basis of the available data with the Distribution Licensees in accordance with the

methodology suggested by the APTEL and also approved by Hon’ble Commission in its Retail Supply Tariff Order for

FY 2014-15.

16. Based on the information available, the Petitioners have made sincere efforts to comply with the Regulations of the

Hon'ble Commission and discharge its obligations to the best of its ability and resources at its command. However,

should any further information of material significance become available during the process of determination, the

petitioner may be permitted to reserve the right to file such additional information and consequently amend/ revise the

petition.


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17. MPERC has approved the true- up orders for all the three discoms for the years FY 2009-10, FY 2010-11 and FY 2011-

12; true up order for MP Transco for FY 2012-13 and true-up order for MPGenco for FY 2011-12. These approved true

up amounts have also been considered while filing the total ARR for FY 2015-16.

18. The salient features of the ARR are as under:-

S.No. ARR Items East Central West Total-

State

1 Total ARR (excluding True Up) Rs Crores 8,054 8,993 10,081 27,128

2 Revenue at current tariffs Rs Crores 7,448 7,901 8,263 23,612

3 Gap (excluding true-up) Rs Crores 606 1,092 1,818 3,516

4 Average Cost of Supply (excluding true-up) Rs/kWh 5.07 5.44 5.66 5.40

Impact of True-Up Amounts of Past Years

a Impact of True Up for Discoms for FY 2009-10 Rs Crores 353 81 60 494

b Impact of True Up for Discoms for FY 2010-11 Rs Crores 164 293 -139 318

c Impact of True Up for Discoms for FY 2011-12 Rs Crores 545 309 78 932

d Impact of True up for MP Transco for FY 2012-13 Rs Crores 52 67 55 174

e Impact of True Up for MPGenco for FY 2011-12 Rs Crores -38 -113 -37 -188

5 Total ARR (Including True Up) Rs Crores 9,130 9,630 10,098 28,858

6 Total Revenue Gap (including True-up) Rs Crores 1,682 1,729 1,835 5,246

7 Average Cost of Supply (including true-up) Rs/kWh 5.74 5.82 5.67 5.74

19. However, despite the various measures taken to improve commercial and technical efficiencies, DISCOMs are unable

to recover the costs incurred, which are compelling the DISCOMs to propose for an increase in the existing tariff.

20. The petitioners would like to reiterate their proposal to alter the mechanism for deriving Fuel Cost Adjustment (FCA)

for recovery/adjustment of uncontrollable costs due to increase or decrease in the cost of fuel in case of coal, oil and gas

based generating stations. The petitioners would like to resubmit that the existing mechanism to calculate FCA does not

have any provision to recover the incremental power purchase. The petitioners also urge that the average power

purchase cost should be considered in the formula instead of only variable costs, thus passing on the complete fixed

costs on to the consumers as a legitimate cost.

21. Shri F.K. Meshram, Chief General Manager (Revenue Management) of MPPMCL; Shri P.K. Singh, Executive Director

(Commercial) of MPPoKVVCL; Shri Kailash Shiva, Chief Engineer (Commercial) of MPPaKVVCL and Shri A.R.

Verma, General Manager & Superintending Engineer (Commercial) of MPMKVVCL have been authorized to execute

and file all the documents on behalf of the respective petitioners in this regard. Accordingly, the current filing is signed

and verified by, and backed by the affidavit of respective authorized signatories.


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PRAYER

In view of the aforesaid facts and circumstances, the Applicant requests that the Hon'ble Commission may be pleased to:

(a) Take the accompanying ARR/Tariff petition of the above petitioners on record and treat it as complete;

(b) Consider and approve petitioner's ARR (including true-up amounts of all companies previous years) amounting

to Rs. 9,130 Cr for East Discom, Rs. 10,098 Cr for West Discom and Rs. 9,630 Cr for Central Discom for the

year FY 2015-16;

(c) Considering the aforesaid facts and circumstances the Hon’ble Commission may be pleased to allow expenses of

MPPMCL as stated to be allowed and include them as a part of power purchase cost of three Discoms, to meet the ends of

justice;

(d) Consider and approve Petitioner’s tariff proposal for FY 2015-16 to recover the costs for the ensuing year;

(e) Consider and determine the wheeling charges, voltage level and consumer category wise cross subsidy

surcharge, additional surcharge and transmission charges for open access customers on the basis of ARR

petition for FY 2015-16 and make applicable w.e.f the application date of the revised tariff;

(f) Condone any inadvertent omissions/ errors/ shortcomings and permit the petitioner to add/ change/ modify/

alter portion(s) of this filing and make further submissions as may be required at a later stage; and

(g) Pass such an order as the Hon'ble Commission deems fit and proper as per the facts and circumstances of the

case.

Date: - 02nd

February 2015

Shri F.K. Meshram, Chief General Manager

(Revenue Management)

MPPMCL, JABALPUR

Shri Kailash Shiva, Chief Engineer (Commercial)

MP Paschim Kshetra Vidyut Vitaran Co. Ltd., Indore.

Shri P.K. Singh, Executive Director

(Commercial)

MP Poorv Kshetra Vidyut Vitaran Co. Ltd.,

Jabalpur.

Shri A.R. Verma, GM & SE (Commercial)

MP Madhya Kshetra Vidyut Vitaran Co. Ltd.,

Bhopal.


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Table of Contents

1. Estimation of sales 11

1.1 Method adopted for Estimation of Sales 11

1.2 Category-wise sales projection 13

2. Energy Requirement at Discom Boundary and Ex-Bus Energy purchased 43

2.1. Conversion of annual sales to monthly sales 43

2.2. MPPTCL Losses 43

2.3. Distribution Losses 43

3. Assessment of Availability 48

3.1. Details of Generation Capacities allocated to Discoms 48

3.2. Details of Generation Capacities allocated to MPPMCL – Existing and Capacity Addition till FY’16 50

3.3. Overall availability 52

3.4. Inter-State Transmission Losses 53

3.5. Management of Surplus Energy 53

3.6. MoD and BackDown 53

3.7. Energy Balance 55

4.1. Details of Costs for Stations allocated to MP Discoms 57

4.2. RPO Cost 63

4.3. Estimation of Other Power Purchase Costs 64

5. O&M Expenses - Discoms 71

5.1. Employee Costs 71

5.2. Administrative & General Expenses 72

5.3. Repair and Maintenance Expenses 72

5.4. Gist of O&M Expenses 73

6. Investment Plan – Discoms 74

7. Other Costs/ Income – Discoms 77

7.1. Depreciation 77

7.2. Interest and Finance Charges 77

7.3. Other Income 82

7.4. Return on Equity 82

7.5. Bad and Doubtful Debts 84

8. Income/Expenses of MPPMCL 85

8.1. Income 85

8.1.1. Revenue from operations (including Revenue Subsidy) 85

8.2. Expenses 85

9. Annual Revenue Requirement 89


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9.1. Annual Revenue Requirement of MPPMCL 89

9.2. Annual Revenue Requirement of Discoms 89

10. Terminal Benefits (Pension, Gratuity and Leave Encashment) Provision 92

11. Power Purchase Cost Adjustment (PPCA) 95

12. Tariff Proposal for FY 2015-16 98

12.1. Salient Features of the Tariff Proposal 100

13. Voltage-Wise Cost of Supply 102

13.1. Commission Directives 102

13.2. Voltage-wise Losses 103

13.2.1. Methodology 103

13.3. Calculation 104

13.4. Determination of Cross-Subsidy Surcharge 106

14. Compliance on Tariff Order FY 2014-15 107

15. TARIFF SCHEDULES 127


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List of tables

Table 1: Sales for the MYT Period FY 2013-14 to FY 2015-16........................................................................................... 12 Table 2: LV-1 Domestic Unit Projection .............................................................................................................................. 13 Table 3: LV-2 Non-Domestic Unit Projection ...................................................................................................................... 16 Table 4: LV-3.1 PWW Unit Projection ................................................................................................................................. 18 Table 5: LV-3.2 Street Light Unit Projection ....................................................................................................................... 20 Table 6: LV-4.1 Non-Seasonal Industrial Unit Projection .................................................................................................... 22 Table 7: LV-4.2 Seasonal Industrial Unit Projection ............................................................................................................ 24 Table 8: HV-1 Railway Traction Projection ......................................................................................................................... 32 Table 9: HV-2 Coal Mines Projection .................................................................................................................................. 33 Table 10: HV-3 Industrial and Non-Industrial Projection ..................................................................................................... 34 Table 11: HV-4 Seasonal – Projections ................................................................................................................................ 37 Table 12: HV-5 Projections .................................................................................................................................................. 39 Table 13: HV-6 Bulk Residential user – Projections ............................................................................................................ 42 Table 14: Month-Wise Sales Profiles of Discoms ................................................................................................................ 43 Table 15: MPPTCL Losses: Past Data from MP-SLDC ....................................................................................................... 43 Table 16: Loss level targets (%) for Discoms (as per MPERC regulations) ......................................................................... 43 Table 17: Monthly energy requirement at Sate Boundary (MU) for FY'15- FY’16 ............................................................. 44 Table 18 Ex-bus energy purchases to be done in FY 16 ....................................................................................................... 47 Table 19: Stations with MP Share which are allocated to MP Discoms ............................................................................... 48 Table 20: Past and Projected ex-bus availability of Stations with MP Share which are allocated to MP Discoms (MU) .... 49 Table 21: Stations allocated to MPPMCL – Existing and Capacity Addition till FY’16 ...................................................... 50 Table 22: Stations allocated to MPPMCL – Projected-Ex Bus Availability till FY’16 (MU) .............................................. 52 Table 23: Overall availability till FY’16 (MU) ..................................................................................................................... 52 Table 24: Management of Surplus Energy with Discoms for FY'15 and FY'16 ................................................................... 53 Table 25 Ex-bus availability after backdown (MU) .............................................................................................................. 54 Table 26: Ex-Bus Purchases by Discoms from Various Sources .......................................................................................... 55 Table 27 Tariff orders of MPPMCL allocated stations ......................................................................................................... 57 Table 28: Fixed and Variable Costs of Discom Allocated Stations for FY 2015-16 ............................................................ 57 Table 29: Fixed and Variable Costs of MPPMCL allocated stations .................................................................................... 59 Table 30 Total Fixed Costs and Variable Costs of Discom Allocated Stations .................................................................... 60 Table 31 Total Fixed and Variable Costs of fixed and variable costs of MPPMCL allocated stations ................................. 61 Table 32: RPO Obligation for FY 16 .................................................................................................................................... 63 Table 33: Inter-State Transmission Charges ......................................................................................................................... 64 Table 34: Intra-state Costs – excluding Terminal Benefits ................................................................................................... 64 Table 35: Actual Cash Outflow towards Terminal Benefits for all State Power Sector Utilities .......................................... 65 Table 36: Total Intra-State Transmission Costs and Allocation to Discoms (Rs Cr) ............................................................ 66 Table 37: MPPMCL Costs: Details and Discoms Allocation (Rs Cr) .................................................................................. 67 Table 38: Total Power Purchase Costs - FY'15 to FY'16 ...................................................................................................... 68 Table 39: Employee Cost ...................................................................................................................................................... 71 Table 40: Administrative and General Expenses-As per Regulation (Rs. Cr.) ..................................................................... 72 Table 41: MPERC fees ......................................................................................................................................................... 72 Table 42: Repair and Maintenance Expenses-As per Regulation (Rs. Cr.) .......................................................................... 72 Table 43: Gist of O&M expenses-As per Regulation (Rs. Crores) ....................................................................................... 73 Table 44: Capital expenditure Plan (Rs. Crores) ................................................................................................................... 74 Table 45: Scheme Wise Capitalization (Rs. Crores) ............................................................................................................. 75 Table 46: CWIP (Rs. Cr.)...................................................................................................................................................... 76 Table 47: Fixed Assets Addition (Rs. Cr.) ............................................................................................................................ 76 Table 48: Depreciation -> as per regulation (Rs. Cr.) ........................................................................................................... 77 Table 49: Interest on Project Loans (Rs. Cr.) ........................................................................................................................ 77 Table 50: Interest on Working Capital (Rs. Cr.) ................................................................................................................... 79 Table 51: Interest on consumer security deposit as per regulation (Rs. Crores) ................................................................... 81 Table 52: Other Income (Rs. Cr.) ......................................................................................................................................... 82


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Table 53: Return on equity as per regulation (Rs. Crores) .................................................................................................... 82 It is submitted that the Commission as per its Tariff Regulations has allowed bad and doubtful debts to the extent of 1% of

revenue from sale of power. However, the Commission may observe that the discoms have actually been writing off bad

debts of amount more than the prescribed 1% of revenue. Considering the facts presented here, the Hon’ble Commission is

prayed to allow the complete 1% amount of revenue as bad debts as per the provisions of its Tariff Regulations.Table 54:

Bad Debts - As per regulation (Rs. Crores) .......................................................................................................................... 84 Table 55: Summary of ARR for MPPMCL (Rs. Cr.) ........................................................................................................... 89 Table 56: Summary of ARR of Discoms as per the Regulation (Rs. Crores) ....................................................................... 90 Table 57: Future Contribution rate of liability on account of Actuary .................................................................................. 92 Table 58: Calculation of Terminal Benefits Provisions (Rs. Crores) .................................................................................... 92 Table 59: Terminal Benefits Provisions Liability for Discoms (Rs. Cr.) .............................................................................. 93 Table 60: Terminal Benefits Provisions Liability for Discoms (Rs. Cr.) .............................................................................. 94 Table 61: Summary of proposed Tariff for FY 2015-16 ....................................................................................................... 98 Table 62: Category-wise proposed revenue for FY 2015-16 ................................................................................................ 99 Table 63: Cost of Supply Calculation for East Discom for FY16 ....................................................................................... 104 Table 64: Cost of Supply Calculation for Central Discom for FY16 .................................................................................. 104 Table 65: Cost of Supply Calculation for West Discom for FY16 ..................................................................................... 105 Table 66: Cost of Supply Calculation for MP State for FY16 ............................................................................................ 105


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1. Estimation of sales

1.1 Method adopted for Estimation of Sales

For the purpose of projection of sales, the distribution licensees have considered category wise and slab wise actual data of

the sale of electricity, number of consumers, connected / contracted load, etc. of the preceding four years i.e. FY 2010-11,

FY 2011-12, FY 2012-13, FY 2013-14 and available data of the FY 2014-15 i.e. up to the month of September 2014.

The licensees, in the previous year’s filing for FY 2014-15, had projected the Sales based on the actual data of FY 2012-

13. Since the actual data of FY 2013-14 is now available and it has been observed that the actual sales during FY 2013-14

have deviated significantly from the sales forecasted by the Licensee and those allowed by the Hon’ble Commission

during the previous filings and considering the increase in supply hours particularly in the rural areas during the current

year, the licensees feel that it will be appropriate to revise the sales forecast for FY 2014-15 and thereafter project the sales

for FY 2015-16.

The sales for FY 2015-16 have been projected on the basis of the actual data of Number of Consumers, Connected Load

and Consumption during the last 4 years and on the basis of revised estimate for FY 2014-15.

The approach being followed is to analyze 3 year and 2 year Compound Annual Growth Rates (CAGRs) and year on year

growth rate of each category and its sub-categories in respect of urban & rural consumers separately. After analysis of the

data, appropriate / reasonable growth rates have been assumed for future consumer forecasts from the past CAGRs of the

Category/Sub-category by the three Discoms.

The past CAGR on sales per consumer / sales per kW and connected load has been applied while forecasting the connected

load and sales in each category/sub-category. The use of specific consumption i.e. consumption per consumer and / or

consumption per unit load is the basic forecasting variable and is widely used in load and energy sales forecasting. The

basic intent in using this model is that, the specific consumption per consumer and / or consumption per unit load captures

the trends and variations in the usage of electricity over a growth cycle more precisely. This method has been

recommended by the C.E.A. also.

The forecast also considers the impact of schemes / plans of licensee such as the RGGVY (Rajiv Gandhi Grameen

Vidyutikaran Yojana), future Meterization Plan of urban domestic consumers and separation of feeders of Agricultural and

other categories of consumers and increase in supply hours in rural areas. The projections for each tariff category and the

relevant assumptions of the three Discoms have been discussed in the following sections. The overall sales forecast is as

follows:


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Table 1: Sales for the MYT Period FY 2013-14 to FY 2015-16

East Discom Central Discom West Discom MP State

TC Category FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16

LV 1 Domestic 2,901 3,338 4,234 2,683 3,457 4,318 3,149 3,520 3,966 8,734 10,315 12,518

LV 2 Non-Domestic 599 789 1,001 640 749 901 763 822 897 2,002 2,361 2,799

LV 3.1 Public Water Works 674 477 537 176 205 241 165 191 219 1,015 873 997

LV 3.2 Street Lights 328 201 207 95 102 122 118 134 155 540 437 484

LV 4 LT Industrial 258 308 345 221 255 285 497 529 549 976 1,092 1,179

LV 5.1 Agriculture Irrigation Pumps 2,770 4,502 5,483 4,407 5,305 6,727 5,418 6,820 7,981 12,596 16,627 20,192

LV 5.3 Agriculture related Use 4 6 6 13 16 19 2 2 2 19 24 28

Total (LT) 7,534 9,621 11,814 8,235 10,090 12,613 10,112 12,018 13,769 25,881 31,729 38,196

HV 1 Railway Traction 512 560 612 847 936 1,019 418 485 562 1,777 1,980 2,193

HV 2 Coal Mines 474 474 474 38 38 39 0 0 0 513 513 513

HV 3.1 Industrial 1,962 2,055 2,199 1,796 1,832 2,008 2,070 2,070 2,070 6,478 5,957 6,277

HV 3.2 Non-Industrial 217 225 240 341 363 396 371 371 371 929 958 1,007

HV 3.3 Shopping Mall 0 7 7 0 10 11 62 62 62 0 79 81

HV 3.4 Power Intensive industries 0 62 66 0 130 139 587 587 587 0 780 792

HV 4 Seasonal 6 13 15 2 2 2 4 5 5 12 20 22

HV 5.1 Public Water Works and Irrigation 68 80 94 145 148 151 332 339 344 544 566 589

HV 5.2 Other Agricultural 11 13 13 4 5 5 5 5 5 21 22 24

HV 6 Bulk Residential Users 302 302 363 148 149 151 9 20 21 459 471 535

Total (HT) 3,552 3,790 4,083 3,322 3,614 3,922 3,866 3,951 4,035** 10,740 11,355 12,041**

TOTAL LT+HT 11,086 13,411 15,897 11,557 13,704 16,535 13,978 15,969 17,805** 36,622 43,083 50,237**

** 8MUs for the purpose of Synchronization and Start-up power under category HV-7 has been considered for West Discom only. Hence, the difference in total.


13

1.2 Category-wise sales projection

1.2.1. LV -1: Domestic

1.2.1.1. Assumptions for Projecting Unmetered Domestic Sales

In the tariff order for FY 2014-15, Hon’ble Commission has considered petitioner’s proposal to revise the

benchmark of billing to unmetered domestic connections in rural areas to 75 units per month per connection. The

petitioners have considered the same for projecting consumption of unmetered domestic connections.

The projections of consumption of un-metered domestic connections in this petition have been considered as NIL

for urban areas (since all domestic consumers in urban areas have been metered).

1.2.1.2. RGGVY

In addition to the growth rate assumed for domestic category, the impact of implementation of RGGVY has also

been taken into account for future consumer/load/consumption projections for Central Discom. The

implementation roadmap of the RGGVY forms the basis of future projections by the Central Discom. While no

consumers and consumption has been estimated for East and West Discoms separately for RGGVY. However, the

same has not been projected separately, but has been included in the overall projection for Domestic category. For

Central Discom 2 lakh consumers and corresponding sales of 22.94 MUs for FY 2015-16 have been projected.

After factoring the growth in consumers the following projections has been arrived at for LV-1 category.

Table 2: LV-1 Domestic Unit Projection

Area Sub Category East Discom Central Discom West Discom

FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16

Urban Metered 1,411 1,791 2,330 1,857 2,180 2,560 1,878 2,085 2,315

Urban Un-metered 1 0 0 2 2 0 0 0 0

Urban Temporary 15 17 17 12 13 15 17 20 20

Urban Total 1,427 1,808 2,347 1,870 2,195 2,575 1,895 2,105 2,335

Rural Metered 891 1,186 1,713 611 1,070 1,647 1,105 1,291 1,568

Rural Un-metered 581 341 171 201 192 96 148 122 61

Rural Temporary 2 2 2 0 1 1 2 2 2

Rural Total 1,474 1,530 1,886 813 1,262 1,744 1,254 1,415 1,631

Total Metered 2,302 2,977 4,044 2,468 3,250 4,207 2,983 3,376 3,883

Total Un-metered 583 341 171 203 194 96 148 122 61

Total Temporary 17 19 19 12 14 15 19 22 22

Total Total 2,901 3,338 4,234 2,683 3,457 4,318 3,149 3,520 3,966

1.2.1.3. East Discom

The growth percentages assumed for the category for FY 2015-16 are as shown below:

Area Category Urban Rural

FY 16 (Projection) Description (FY 16) FY 16 (Projection) Description (FY 16)

Metered

Consumer

5.99%

Current year growth

rate has been

considered

6.60%

Current year growth

rate has been

considered

Average Load (kW)

per Consumer 0.00%

No growth rate has

been considered 0.00%

No growth rate has

been considered

Average consumption

per consumer per

month

8.40% 2 year CAGR has


Nominal growth rate

has been considered

Un-metered Consumer 0.00% All unmetered

consumers are

0.00% All unmetered

consumers are Average Load per 0.00% 0.00%


14

Consumer (in kW) expected to be

metered by the FY16

expected to be

metered by the FY16 Average consumption

per consumer per

month

0.00% 0.00%

Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%

No growth rate has

been considered

Average Load per

Consumer (in kW) 0.00% 0.00%

Average consumption

per consumer per

month

0.00% 0.00%

1.2.1.4 Central Discom

The growth percentages assumed for the category are as shown below



Metered Consumer

7.23%

Current year growth

rate and growth rate

due to meterization

of unmetered

consumers

15.09%

YoY growth rate and

growth rate due to

meterization of

unmetered consumers

Average Load (kW)

per Consumer 0%

No growth rate has

been considered 0%

No growth rate has

been considered

Average

consumption per

consumer per month

9.48%

Current year growth

rate has been

considered

26.67%

Current year growth

rate has been

considered

Un-metered Consumer 0.00%

All unmetered

consumers are

expected to be

metered by the FY16

0.00%

All unmetered

consumers are

expected to be

metered by the FY16

Average Load per


Average

consumption per

consumer per month

0.00% 0.00%

Temporary Consumer

10.94%

Current year growth

rate has been

considered

11.63% 3 year CAGR is

considered

Average Load per

Consumer (in kW) 0.00%

No growth rate has

been considered

0.00%

No growth rate has

been considered Average

consumption per

consumer per month

0.00% 0.00%

1.2.1.5 West Discom

The growth percentages assumed for the category are as shown below:

Area

Category

Urban Rural


Metered

Consumer 4.38%

YoY growth rate has


3 year CAGR is

considered

Average Load (kW)

per Consumer 0.00%

No growth rate has


No growth rate has

been considered

Average

consumption per

consumer per month

7.03%

Current year growth

rate has been

considered

6.88% 2 year CAGR is

considered

Un-metered

Consumer 0.00%

No growth rate has

been considered

0.00%

No growth rate has

been considered

Average Load per


Average

consumption per

consumer per month

0.00% 0.00%

Temporary Consumer



No growth rate has

been considered


15

Area

Category

Urban Rural


Average Load per


No growth rate has

been considered

0.00%

No growth rate has

been considered Average

consumption per

consumer per month

0.00% 0.00%


16

1.2.2. LV -2: Non-Domestic

The future projections are as below

Table 3: LV-2 Non-Domestic Unit Projection

Sub Category East Discom Central Discom West Discom


Metered 580 748 960 606 706 856 722 781 857

Temporary 19 41 41 35 45 45 40 40 40

Total 599 789 1,001 640 749 901 763 822 897





Metered

Consumer

4.49%

Current year growth

rate has been

considered

9.38% YoY growth rate has

been considered

Average Load (kW) per

Consumer 9.39%

3 year CAGR is

considered 0.97%

YoY growth rate has

been considered

Average consumption per

consumer per month 15.00%

Nominal growth rate

has been considered 5.00%

Nominal growth rate

has been considered

Temporary

Consumer

0.00% No growth rate has


No growth rate has

been considered

Average Load per

Consumer (in kW)


consumer per month

1.2.2.2. Central Discom


Area

Category

Urban Rural

FY 16

(Projection) Description (FY 16)

FY 16


Metered Consumer

4.42%

Current year growth

rate has been

considered 5.81%

YoY growth rate has

been considered


Consumer 11.08%

Current year growth

rate has been

considered 7.67%

Current year growth rate

has been considered



Nominal growth rate

of 5% has been

considered

4.33%


has been considered

Temporary Consumer 0.00%

No growth rate has

been considered

5.00% Nominal growth rate has

been considered


Consumer 0.00% 0.00%

No growth rate has been

considered Average consumption per

consumer per month 0.00% 0.00%


17

1.2.2.3. West Discom



FY 16


FY 16

(Projection)

Description (FY

16)

Metered Consumer 2.28% YoY growth rate has

been considered


been considered


Consumer

7.80% 2 year CAGR has been

considered


been considered


consumer per month


been considered

3.13% YoY growth rate

has been considered


No growth rate has

been considered

0.00%

No growth rate has

been considered

Average Load per

Consumer (in kW)

0.00% 0.00%


consumer per month

0.00% 0.00%


18

1.2.3. LV -3.1: Public Water Works

Considering the anticipated increase in supply hours, the future projections are as follows:

Table 4: LV-3.1 PWW Unit Projection



Municipal Corp. 49 51 51 73 78 84 35 39 40

Nagar Panchayat 77 65 68 66 76 88 47 51 56

Gram Panchayat 543 356 413 32 44 62 77 95 117

Temporary 5 5 5 6 6 7 5 5 5

Total 674 477 537 176 205 241 165 191 219



Area Category

Urban Rural

FY 16


FY 16


Municipal

Corporation

Consumer 0.87%

2 year CAGR has


No growth rate has

been considered


Consumer 0.00%

No growth rate has

been considered

0.00%

Average consumption

per consumer per month 0.00% 0.00%

Nagar

Panchayat

Consumer



Current year growth

rate has been

considered

Average Load per


YoY growth rate has


No growth rate has

been considered Average consumption

per consumer per month 0.00%

No growth rate has


Gram

Panchayat

Consumer



Current year growth

rate has been

considered

Average Load per


3 year CAGR has


No growth rate has



No growth rate has


Temporary

Consumer



No growth rate has

been considered


Consumer

Average consumption

per consumer per month



Area Category

Urban Rural

FY 16


FY 16


Municipal

Corporation

Consumer 0.00%

No growth rate has


No growth rate has

been considered


Consumer 1.11%

Current year growth

rate has been

considered 2.24%

Current year growth

rate has been

considered Average consumption 5.99% Current year growth 13.26% Current year growth


19

Area Category

Urban Rural

FY 16


FY 16


per consumer per month rate has been

considered rate has been

considered

Nagar

Panchayat

Consumer 3.53%

2 year CAGR has


No growth rate has

been considered

Average Load per

Consumer (in kW) 0.85% 3 year CAGR has


Current year growth

rate has been

considered

Average consumption


YoY growth rate has


3 year CAGR has

been considered

Gram

Panchayat

Consumer 12.95%

3 year CAGR has


3 year CAGR has

been considered

Average Load per


No growth rate has


No growth rate has

been considered

Average consumption


YoY growth rate has


YoY growth rate has

been considered

Temporary

Consumer



Current year growth

rate has been

considered Average Load (kW) per

Consumer 5.45%

Current year growth

rate has been

considered

6.21%

Current year growth

rate has been

considered Average consumption


3 year CAGR has


No growth rate has

been considered



Area Category

Urban Rural

FY 16


FY 16


Municipal

Corporation

Consumer 2.46%

2 year CAGR has


No growth has been

considered


Consumer 1.08%

Current year growth

rate has been

considered


been considered

Average consumption


No growth has been

considered 1.64%

YoY growth rate has

been considered

Nagar

Panchayat

Consumer 6.28%

2 year CAGR has


No growth has been

considered

Average Load per


Current year growth

rate has been

considered


been considered

Average consumption


No growth rate has


No growth rate has

been considered

Gram

Panchayat

Consumer

5.44%

Current year growth

rate has been

considered

21.60%

Current year growth

rate has been

considered

Average Load per


YoY growth rate has

been considered

Average consumption


No growth rate has

been considered


No growth rate has

been considered

0.00%

No growth rate has

been considered



Average consumption



20

1.2.4. V -3.2: Street Light

Considering the anticipated increase in supply hours, the future projections are as below:

Table 5: LV-3.2 Street Light Unit Projection



Municipal Corp. 50 62 65 51 47 53 51 59 69

Nagar Panchayat 61 49 52 42 51 64 35 39 46

Gram Panchayat 217 90 90 3 4 6 31 36 40

Total 328 201 207 95 102 122 118 134 155


The growth percentages assumed for the category are as shown below.


FY 16


FY 16


Municipal

Corporation

Consumer 5.24%



No growth rate has

been considered


Consumer 0.00%


considered

0.00%

Average consumption


Nagar Panchayat

Consumer 5.98%



Average Load per



considered

0.00%

Average consumption


Gram Panchayat

Consumer 6.47%



Average Load per



considered

0.00%

Average consumption




Area Category

Urban Rural

FY 16


FY 16


Municipal

Corporation

Consumer 5.88% Current year has been

considered

0.00%

No growth has been

considered



Average consumption


2 year CAGR has been

considered 0.00%

Nagar Panchayat

Consumer 5.97%



No growth has been

considered

Average Load per


YoY growth rate has been

considered 12.46%

3 year CAGR has




has been considered

34.96%

Gram Panchayat

Consumer 78.95% 0.00%

No growth rate has

been considered

Average Load per 9.53% YoY growth rate has been 10.55% Current year growth


21

Consumer (in kW) considered rate has been

considered

Average consumption



considered 10.00%

Nominal growth rate

has been considered



Area Category

Urban Rural

FY 16


FY 16


Municipal

Corporation

Consumer 17.85%



No growth rate has

been considered


Consumer 0.00%


considered

0.00%

Average consumption


Nagar Panchayat

Consumer 7.93%


considered 0.00%

No growth rate has

been considered

Average Load per



considered 17.35%

Current year growth

rate has been

considered

Average consumption



considered 0.00%

No growth rate has

been considered

Gram Panchayat

Consumer 3.83%



No growth rate has

been considered Average Load per



considered

0.00%

Average consumption


Nominal growth rate

of 10% has been

considered


22

1.2.5. LV -4.1: Non- Seasonal Industrial

The future projections are as below:

Table 6: LV-4.1 Non-Seasonal Industrial Unit Projection



Upto 25HP 152 167 180 129 148 164 234 246 260

Above 25HP to 100HP 82 102 122 72 88 99 217 227 228

Above 100HP 8 13 16 5 6 7 31 41 46

Temporary LT Ind. 4 11 11 1 3 3 2 2 2

Total 245 293 330 207 245 272 484 516 536


The assumptions for sales forecast for the category are given below:

Area Category

Urban Rural

FY 16


FY 16


Upto 25HP

Consumer 2.22%


considered 4.64%


considered


Consumer 0.54%


considered 1.09%

Current year growth

rate has been considered Average consumption per



considered 5.31%

Above 25HP

to 100HP

Consumer 10.61%


considered 9.15%


considered

Average Load per


Current year growth

rate has been

considered


considered



No growth rate has


Nominal growth rate

has been considered

Above

100HP

Consumer 25.03%


considered


considered

Average Load per



considered



No growth rate has



considered

Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%


considered






The growth percentages assumed are as follows

Area Category

Urban Rural

FY 16


FY 16


Upto 25HP

Consumer

5.19%

Current year growth

rate has been

considered


been considered


Consumer 1.52%


considered 0.53% YoY growth has

been considered



Current year growth

rate has been 9.73%


23

Area Category

Urban Rural

FY 16


FY 16


considered

Above 25HP

to 100 HP

Consumer

9.45%

Current year growth

rate has been

considered 4.48%

3 year CAGR has

been considered

Average Load per



considered 2.38%

YoY growth rate has

been considered



YoY growth rate has


2 year CAGR has

been considered

Above

100HP

Consumer 13.19%


considered 0.00%

No growth has been

considered Average Load per



considered 0.00%


consumer per month 0.00% No growth rate has


Nominal growth rate

of 10% has been

considered

Temporary

Consumer 0.00%

No growth has been

considered


been considered



3 year CAGR has

been considered


consumer per month 11.11% 3 year CAGR has been

considered 10.00%

Nominal growth rate

of 10% has been

considered


The growth percentages assumed are as follows:

Area Category

Urban Rural

FY 16


FY 16


Up to 25HP

Consumer 1.43%

YoY growth rate has


2 year CAGR has

been considered


Consumer 2.74%

Current year growth

rate has been

considered




No growth rate has


Above 25HP

to 100 HP

Consumer

0.28%

Current year growth

rate has been

considered


been considered

Average Load per


No growth has been

considered


been considered

Average consumption


No growth has been

considered

Above 100HP

Consumer

10.00%

Nominal growth rate

of 10% has been

considered

1.00%

Nominal growth rate

of 1% has been

considered

Average Load per


Current year growth

rate has been

considered




No growth rate has


Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%

No growth rate has

been considered



Average consumption



24

1.2.6. LV -4.2: Seasonal Industrial

The future projections are as follows:

Table 7: LV-4.2 Seasonal Industrial Unit Projection



Upto 25HP 6 7 8 7 6 7 3 3 3

Above 25HP to 100HP 6 6 7 6 4 4 8 8 8

Above 100HP 0 1 1 1 1 1 2 2 2

Total 13 15 15 14 11 12 13 13 13


The growth percentages assumed are as follows:



Upto

25HP

Consumer 0.00%


considered 0.00%

3 year CAGR has

been considered


Consumer 0.00%

No growth rate has


Current year growth

rate has been

considered



Current year growth

rate has been

considered

8.85%

3 year CAGR has

been considered

Above

25HP

to

100HP

Consumer 0.00%


considered 0.00%

3 year CAGR has

been considered

Average Load per Consumer

(in kW) 1.91% Current year growth

rate has been

considered


been considered


consumer per month 0.07% 10.00% Nominal growth rate

has been considered

Above

100HP

Consumer 0.00%


considered 0.00%

3 year CAGR has

been considered

Average Load per Consumer

(in kW) 0.00% No growth rate has

been considered 0.00% No growth rate has

been considered Average consumption per



The growth percentages assumed are as follows

Area Category

Urban Rural

FY 16 (Projection) Description (FY 16) FY 16 (Projection) Description (FY

16)

Upto 25HP

Consumer 0.00%

No growth rate

considered 0.00%

No growth rate

considered

Average Load (kW)

per Consumer 2.51%

Current year growth

rate has been

considered

1.01% YoY growth rate

has been considered

Average

consumption per

consumer per month

11.93% 9.54% 2 year CAGR has

been considered

Above 25HP

to 100 HP

Consumer 0.00%

No growth rate has


No growth rate has

been considered Average Load per



considered 0.00%

Average

consumption per 10.00%

Nominal growth rate

of 10% has been 3.97%

YoY growth rate

has been considered


25

Area Category

Urban Rural

FY 16 (Projection) Description (FY 16) FY 16 (Projection) Description (FY

16)

consumer per month considered

Above 100HP

Consumer 0.00%

No growth rate has


No growth rate has

been considered

Average Load per



considered 0.00%

Average

consumption per

consumer per month




The growth percentages are assumed as follows:


FY 16 (Projection) Description (FY 16) FY 16 (Projection)

Description (FY

16)

Upto 25HP

Consumer 0.00%

No growth has been

considered

5.00% Nominal growth

rate of 5% has been

considered

Average Load (kW)

per Consumer

0.00% 0.00%

No growth rate has


per consumer per

month

0.00% 0.00%

Above 25HP

to 100 HP


No growth rate has

been considered

Average Load per

Consumer (in kW)

0.00% 0.00%

Average consumption

per consumer per

month

0.00% 0.00%

Above

100HP


Average Load per

Consumer (in kW)

0.00% 0.00%

Average consumption

per consumer per

month

0.00% 0.00%


26

1.2.7. LV -5.1: Agricultural

The projections for LV 5.1 Agricultural category are as follows

Area Sub Category East Discom Central Discom West Discom


Urban Metered General 4 4 5 2 2 2 4 4 4

Urban Metered Temporary 3 3 3 2 2 2 1 1 1

Urban Unmetered General 212 339 405 231 231 287 202 274 345

Urban Unmetered

Temporary 23 26 26 24 21 21 34 42 42

Urban Total 242 372 439 258 255 312 241 321 391

Rural Metered General 33 4 5 24 30 38 0 0 0

Rural Metered Temporary 27 87 87 0 0 0 0 0 0

Rural Unmetered General 1,896 3,518 4,433 3,488 4,495 5,852 4,340 5,587 6,676

Rural Unmetered

Temporary 573 521 518 636 525 525 837 912 914

Rural Total 2,528 4,131 5,044 4,149 5,050 6,416 5,177 6,499 7,590

Total Metered General 37 8 10 26 32 40 4 4 4

Total Metered Temporary 29 90 90 2 2 2 1 1 1

Total Unmetered General 2,108 3,857 4,839 3,719 4,725 6,140 4,542 5,862 7,021

Total Unmetered

Temporary 596 547 544 660 546 546 871 953 956

Total Total 2,770 4,502 5,483 4,407 5,305 6,727 5,418 6,820 7,981

For unmetered temporary agriculture consumers under this category, the assessed consumption is considered as per the

norms stipulated by Hon’ble Commission in the tariff order for FY 2014-15. The same is shown as below:

Urban Urban Rural Rural

2014-15 2015-16 2014-15 2015-16

Three Phase 220 220 195 195

Single Phase 230 230 205 205


The growth rates assumed for future projections and revised estimates for this category by east discom are as follows:



Metered

General

Consumer 0.00%

No growth rate has


Nominal growth rate has

been considered Load

20.00%

Nominal growth rate

of 20% has been

considered

20.00%

Consumption per HP 0.00%

No growth rate has



considered

Unmetered

Permanent

Consumer

6.00%

Nominal growth rate

of 6% has been

considered

6.00%

Nominal growth rate of

6% has been considered

Load 10.00%

Nominal growth rate

of 10% has been 10.00%




27



considered

Consumption per HP 0.00%

No growth rate has



considered

Metered

Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%


considered Load/ consumer 0.00% 0.00%

Consumption per HP 0.00% 0.00%


The growth rates assumed for future projections and revised estimates for this category by central discom are as follows:


FY 16


FY 16


Metered

Permanent

Consumer 75.78% Current year growth

rate/nominal/zero

growth rate for various

subcategories

2.05%

Current year growth

rate/zero growth rate for

various subcategories

Load 21.83% 0.30%

Consumption per HP 0.00% No growth rate has

been considered

25.01%

Metered

Temporary

Consumer 46.11% Nominal /zero growth

rate for various

subcategories

0.00% No growth rate has been

considered

Load 16.58% 0.00% No growth rate has been

considered

Consumption per HP 5.13% Current year growth

rate/zero growth rate

for various

subcategories


considered

Unmetered

Permanent

Consumer 21.77% 3 year CAGR

rate/nominal /zero


subcategories

44.61% 3 year,1 year

CAGR/nominal growth

rate/ zero growth rate for

various sub categories

Load 24.57% 3 year,2 year

CAGR/nominal

growth rate/ zero


sub categories

25.00% Nominal growth rate of


Consumption per HP 24.57% 30.21% Nominal growth rate of

30.21% has been

considered

Metered


No growth rate has

been considered

0.00%


considered Load 0.00% 0.00%



28


The growth rates assumed for future projections and revised estimates for this category by west discom are as follows:

Area Category

Urban Rural

FY 16


FY 16


Metered

Permanent

Consumer 0.00%

No growth rate has

been considered

0.00%




Metered

Temporary

Consumer 0.00% No growth rate

has been considered 0.00% No growth rate has been



Unmetered

Permanent

Consumer 11.39% 3 year CAGR has been

considered 0.00%


considered

Load 25.76% 3 year CAGR has been

considered 14.70%

Nominal growth rate has

been considered

Consumption per HP 0.00% No growth rate has



considered

Metered

Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%





29

1.2.8. LV -5.2: Other than agricultural Use

The month-wise segregation of norms for assessed consumption of unmetered permanent agricultural connections are as

shown below

Three Phase Single Phase

Months Urban Urban Rural Rural Urban Urban Rural Rural

2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16

April 90 90 80 80 90 90 90 90

May 90 90 80 80 90 90 90 90

June 90 90 80 80 90 90 90 90

July 90 90 80 80 90 90 90 90

Aug 90 90 80 80 90 90 90 90

Sept 90 90 80 80 180 180 180 180

Oct 170 170 170 170 180 180 180 180

Nov 170 170 170 170 180 180 180 180

Dec 170 170 170 170 180 180 180 180

Jan 170 170 170 170 180 180 180 180

Feb 170 170 170 170 180 180 180 180

March 170 170 170 170 180 180 180 180

The projections for LV 5.2 Agricultural category are as follows



Upto 25HP 4 6 6 13 16 19 2 2 2

25HP to

100HP 0 0 0 0 0 0 0 0 0

Temporary 0 0 0 0 0 0 0 0 0

Total 4 6 6 13 16 19 2 2 2





Upto 3HP

Consumer 10.00%

Nominal growth rate

of 10% has been

considered



Load 0.00% No growth rate has

been considered


considered Consumption per HP 0.00% 0.00%

Above 3HP

to 5HP

Consumer 10.00%

Nominal growth rate

of 10% has been

considered



Average Load (kW)

per Consumer 0.00%

No growth rate has

been considered

0.00%


considered Average

consumption per

consumer per month

0.00% 0.00%

Above 5HP

to 10HP

Consumer 10.00%

Nominal growth rate

of 10% has been

considered



Average Load (kW)

per Consumer 0.00%

No growth rate has

been considered


considered Average

consumption per 0.00% 0.00%


30



consumer per month

Above

10HP to

20HP

Consumer 10.00%

Nominal growth rate

of 10% has been

considered



Average Load (kW)

per Consumer 0.00%

No growth rate has

been considered

0.00%


considered Average

consumption per

consumer per month

0.00% 0.00%

Above

20HP

Consumer 10.00%

Nominal growth rate

of 10% has been

considered



Average Load (kW)

per Consumer 0.00%

No growth rate has

been considered

0.00%


considered Average

consumption per

consumer per month

0.00% 0.00%

Temporary

Consumer 0.00%

No growth rate has

been considered

0.00%


considered

Average Load (kW)

per Consumer 0.00% 0.00%

Average

consumption per

consumer per month

0.00% 0.00%



Area Category

Urban Rural

FY 16


FY 16


Upto 3HP

Consumer 20.00% Nominal growth rate of

20% has been considered 20.00%

Nominal growth rate of 20%

has been considered

Load 0.00% No growth rate has been

considered



>3HP to

5HP

Consumer 0.00%


considered

20.00% Nominal growth rate of 20%

has been considered



>5HP to

10HP

Consumer 0.00%


considered


has been considered



>10HP to

20HP

Consumer 0.00%


considered


has been considered



>20HP

Consumer 33.33% Current year’s growth

rate has been considered 0.00%


considered Load 0.00% No growth rate has been

considered

0.00%


Temporary

Consumer 28.57% Current year growth rate

considered 0.00% No growth rate has been

considered Load 0.00% No growth rate has been 0.00%


31

Area Category

Urban Rural

FY 16


FY 16


Consumption per HP 0.00% considered 0.00%



Area Category

Urban Rural

FY 16


FY 16


Up to 3HP

Consumer 20.00% Nominal growth rate of

20% has been considered 0.00% No growth is considered

Load 0.00% No growth is considered

0.00% No growth is considered


>3HP to

5HP

Consumer 0.00%

No growth is considered

0.00%

No growth is considered Load 0.00% 0.00%


>5HP to

10HP

Consumer 11.36% 2 year CAGR has been

considered 0.00%

No growth is considered Load 0.00% No growth is considered

0.00%


>10HP to

20HP

Consumer 0.00%


0.00%



>20HP

Consumer 0.00%


10.00% Current year growth rate has

been considered

Load 0.00% 0.00% No growth is considered


Temporary

Consumer 0.00%


0.00%




32

1.2.9. HV -1: Railway Traction

The projection of sales for this category is as follows:

Table 8: HV-1 Railway Traction Projection

East Discom Central Discom West Discom


HV-1 Railway Traction 512 560 612 847 936 1,019 418 485 562



Area Category

Urban Rural

FY 16

(Projection) Description (FY 16) FY 16 (Projection) Description (FY 16)

220 kV Consumer 0.00% No growth rate has been

considered

0.00%


considered

Load (kW) 0.00% 0.00%

Units (MUS) 10.57% Current year’s growth rate



considered

0.00%

Load (kW) 0.00% 0.00%

Units (MUS) 5.74% Current year’s growth rate




Area

Category

Urban Rural

FY 16



considered


considered Load (kW) 0.00% 0.00%

Units (MU) 10.00%




has been considered


considered



Units (MU) 10.00%




has been considered




FY 16



considered



Units (MU) 0.00% 0.00%


considered



Units (MU) 16.00%




has been considered


33

1.2.10. HV -2: Coal Mines

The projection of sales for this category is as shown below:

Table 9: HV-2 Coal Mines Projection



132 kV 190 190 190 0 0 0 0 0 0

33 kV 278 278 278 37 37 37 0 0 0

11 kV 5 5 5 1 1 1 0 0 0

Total 474 474 474 38 38 39 0 0 0


No growth rate has been considered to project consumption for FY 2015-16.


Growth rate of 2.72% (YoY growth rate) for consumption @ 11 kV has been considered, while for other categories, no

growth rate has been considered.


No growth rate has been considered to project consumption for FY 2015-16.


34

1.2.11. HV-3: Industrial and Non-Industrial


Table 10: HV-3 Industrial and Non-Industrial Projection



Industrial

- Unit

(MU)

220 kV 81 99 99 0 0 0 0 0 0

132 kV 1,321 1,421 1,527 616 705 808 248 248 248

33 kV 471 436 462 1,137 1,083 1,155 2,324 1,677 1,677

11 kV 89 99 111 43 44 45 147 145 145

Total 1,962 2,055 2,199 1,796 1,832 2,008 2,719 2,070 2,070

Non

Industrial

- Unit

(MU)

132 kV 0 0 0 0 0 0 44 44 44

33 kV 135 138 147 252 265 289 211 211 211

11 kV 81 87 93 89 98 108 115 115 115

Total 217 225 240 341 363 396 371 371 371

Shopping

Mall

(MU)

132 kV 0 0 0 0 0 0 0 0 0

33 kV 0 7 7 0 10 11 0 60 60

11 kV 0 0 0 0 0 0 0 2 2

Total 0 7 7 0 10 11 0 62 62

Power

Intensive

Industries

(MU)

132 kV 0 0 0 0 0 0 0 0 0

33 kV 0 62 66 0 130 139 0 587 587

Total 0 62 66 0 130 139 0 587 587


The assumptions for sales forecast for the Industrial category HV 3.1 are as given below:



440/220

kV

Consumer 0.00% No growth rate has

been considered



Units (MUS) 0.00% 0.00%

132 kV


been considered



Units (MUS) 6.21% YoY growth rate has



considered

33 kV

Consumer 4.33% YoY growth rate has


Current year’s growth rate

has been considered

Load (kW) 0.00% No growth rate has



considered Units (MUS) 9.07%

Current year’s

growth rate has been

considered

0.00%

11 kV

Consumer 14.14% YoY growth rate has



has been considered

Load (kW) 9.27%

Current year’s


considered 1.38%


considered

Units (MUS) 13.31%

Current year’s


considered 0.28%


considered


35

The assumptions for sales forecast for the Non-Industrial category HV 3.2 are as given below:

Area Category

Urban Rural

FY 16


FY 16



considered



Units (MUS) 0.00% 0.00%

33 kV Consumer 2.60%


considered 0.00%


considered Load (kW) 0.00%


considered 0.00%

Units (MUS) 6.82%


considered 5.67%

Current year’s growth rate has

been considered



considered 6.67%


been considered

Load (kW) 0.00%


considered 0.00%


considered

Units (MUS) 7.35%


considered 5.80%


considered


The assumptions for sales forecast for the Industrial category HV 3.1 are as given below:

Area Category

Urban Rural

FY 16


FY 16


400/220

kV

Consumer 0.00% No growth rate has been

considered



Units (MU) 0.00% 0.00%



considered 0.00%


considered

Load (kW) 18.07% YoY growth rate has been

considered


considered

Units (MU) 14.93% 3.39% Current year’s growth rate has

been considered



has been considered

3.53% YoY growth rate has been

considered

Load (kW) 3.61% 7.50% Current year’s growth rate has

been considered

Units (MU) 7.31% 5.00% Nominal growth rate has been

considered



considered


considered

Load (kW) 10.70% 20.71% 2 year CAGR has been

considered

Units (MU) 1.61% 3 year CAGR has been

considered 10.00%

Nominal growth rate has been

considered



FY 16


FY 16



considered



Units (MU) 0.00% 0.00%

33 kV Consumer 4.56% Current year’s growth rate

has been considered


considered

Load (kW) 10.45% 3 year CAGR has been

considered


considered


36

Units (MU) 9.25% YoY growth rate has been

considered


considered

11 kV Consumer 8.83% Current year’s growth rate

has been considered

0.00%


considered

Load (kW) 9.72% 2 year CAGR has been

considered

0.00%


considered

0.00%


It has been assumed that no growth would be considered to forecast sales for the Industrial category HV 3.1


Area Category

Urban Rural

FY 16


FY 16


132

kV

Consumer 0.00%


considered 0.00%


considered

Load

(kW) 5.27%


considered 0.00%

Units

(MU) 0.00%


considered 0.00%

33 kV

Consumer 9.48%



2 year CAGR has been considered

Load

(kW) 0.00%


considered


considered

Units

(MU) 0.00% 0.00%


considered

11 kV

Consumer 5.96% Current year’s growth rate has

been considered

0.00%


considered

Load

(kW) 6.01% 0.00%

Units

(MU) 0.00%


considered 0.00%


37

1.2.12. HV -4: Seasonal


Table 11: HV-4 Seasonal – Projections



33 kV 6 11 13 1 1 1 3 3 3

11 kV 0 2 2 1 1 1 1 1 1

Total 6 13 15 2 2 2 4 5 5




FY 16


FY 16


132

kV


considered



Units (MUS) 0.00% 0.00%

33 kV


considered



Units (MUS) 10.00% Nominal growth of 10%

rate has been considered 20.00%

Nominal growth rate of 20% has

been considered

11 kV


considered



Units (MUS) 10.00% Nominal growth rate of



been considered


The growth percentages assumed for sales forecast for the category are as given below:


FY 16


132

kV

Consumer 0.00%

No growth rate has

been considered

0.00%



Units (MU) 0.00% 0.00%

33 kV Consumer 0.00% 0.00% No growth rate has been


Units (MU) 0.00% 15.89% 2 year CAGR has been

considered

11 kV Consumer 0.00% 0.00%



Units (MU) 0.00% 0.00%


38




FY 16


FY 16


132 kV

Consumer 0.00%


considered

0.00%



Units (MU) 0.00% 0.00%

33 kV

Consumer 0.00% 0.00% No growth rate has been


Units (MU) 0.00% 10.00% Nominal growth rate of 10% is

considered

11 kV


considered

0.00%


considered

Load (kW) 0.00% 0.00%


considered

0.00%


39

1.2.13. HV -5 Water Works, Lift Irrigation & Other than Agricultural


Table 12: HV-5 Projections

Sub

Category



Water Works/

Irrigation - Units

(MU)

132 kV 0 0 0 42 42 42 260 260 260

33 kV 60 70 82 93 96 98 52 56 61

11 kV 7 8 10 9 9 9 12 12 13

Total 66 78 93 144 147 150 324 329 333

Irrigation - Units

(MU)

132 kV 0 0 0 0 0 0 0 0 0

33 kV 1 1 1 0 0 0 8 11 11

11 kV 0 0 0 0 0 1 0 0 0

Total 1 1 1 1 1 1 8 11 11

Other than

Agricultural -

Units (MU)

132 kV 0 0 0 0 0 0 0 0 0

33 kV 11 12 13 4 4 5 5 5 5

11 kV 0 1 1 0 0 0 0 0 0

Total 11 13 13 4 5 5 5 5 5


The growth percentages for sales forecast for the HT Water Works category are given below:



132 kV Consumer 0.00% No growth rate has

been considered



Units (MUS) 0.00% 0.00%


been considered



Units (MUS) 14.31%


considered 23.31%

Current year growth rate has

be considered


been considered



Units (MUS) 23.43%

Current year growth

rate has be considered 28.44%


be considered

No growth rate has been considered to project sales for the HT Irrigation.

The growth percentages for sales forecast for the HT – Other than Agricultural category are given below



132 kV

Consumer 0.00%

No growth rate has

been considered

0.00%



Units (MUS) 0.00% 0.00%

33 kV

Consumer 6.27% 3 Year CAGR has




3 Year CAGR has


Units (MUS) 3.33% 2 Year CAGR has 12.17% 3 Year CAGR has been


40

been considered considered

11 kV

Consumer 25.99% 3 Year CAGR has




No growth rate has


Units (MUS) 1.89% 2 Year CAGR has


2 Year CAGR has been

considered


The growth percentages for sales forecast for the HT water works category are given below:

Area Category

Urban Rural

FY 16 (Projection) Description (FY 16) FY 16


132 kV

Consumer 0.00%

No growth rate has

been considered

0.00%



Units (MU) 0.00% 0.00%

33 kV

Consumer 15.00%

YoY growth rate has




No growth rate has


Units (MU)

2.76%

Current year growth

rate has been

considered

11.25% Current year growth rate has

been considered

11 kV


been considered

0.00%


considered

Load (kW) 0.00% 0.00%

Units (MU) 2.23%

YoY growth rate has


For HT Irrigation category, nominal growth rate of 10% has been considered to project consumption @ 33kV for Urban

and Rural consumers and for consumption @ 11 kV for Rural consumers.

The growth percentages for sales forecast for the HT- Other than Agricultural category are given below

Area Category

Urban Rural

FY 16 (Projection) Description (FY 16) FY 16




considered

0.00%



Units (MU) 0.00% 0.00%

33 kV Consumer 10.00% Nominal growth rate of

10% has been

considered



Units (MU) 10.00% 10.00% Nominal growth rate has been

considered


considered

0.00%



Units (MU) 10.11% 3 year CAGR has been

considered

0.00%


41


The growth percentages for sales forecast for the HT- Water Works category are given below:

Area Category

Urban Rural

FY 16


FY 16


132

kV

Consumer 0.00%


considered

0.00%


considered

Load

(kW) 0.00% 0.00%

Units

(MU) 0.00% 0.00%

33 kV

Consumer 31.03%




considered Load

(kW) 45.65%


considered 0.00%

Units

(MU) 8.75%


considered 7.57%

Current year growth rate has been

considered

11 kV

Consumer 0.00%


considered


considered

Load

(kW) 0.00% 10.00%

Nominal growth rate has been

considered

Units

(MU) 0.80%




considered

No Growth has been considered for projecting sales for HT- Irrigation category and HT – Other than Agriculture

categories for West Discom.


42

1.2.14. HV -6: Bulk Residential users


Table 13: HV-6 Bulk Residential user – Projections



33 kV 274 274 329 139 139 139 3 13 14

11 kV 28 28 33 9 10 12 6 7 7

Total 302 302 363 148 149 151 9 20 21






considered



Units (MUS) 20.00%






considered



Units (MUS) 20.00%







Area Category

Urban Rural

FY 16


FY 16




considered



Units (MU) 0.00% 8.85%


considered


considered 0.00% No growth rate has been


Units (MU) 24.69%




been considered




FY 16

(Projection)

Description (FY 16) FY 16

(Projection)

Description (FY 16)


considered



Units (MU) 10.00% Nominal growth rate of 10%

has been considered

5.00% Nominal growth rate of 5% has

been considered


considered


considered Load (kW) 1.14% 2 year CAGR is considered 0.00%

Units (MU) 5.00% Nominal growth rate of 5%

has been considered

5.00% Nominal growth rate of 5% has

been considered


43

2. Energy Requirement at Discom Boundary and Ex-Bus Energy

purchased

2.1. Conversion of annual sales to monthly sales

The annual sales of the Discoms have been converted into monthly sales using the sales profile observed in the past years

for each Discom. This profile is then used to compute monthly sales for FY 2015-16. The profiling for all Discoms is

given in the table below:

Table 14: Month-Wise Sales Profiles of Discoms

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

East Discom 8% 8% 7% 7% 8% 8% 9% 9% 10% 10% 8% 8%

West Discom 8% 8% 7% 7% 7% 8% 9% 10% 10% 10% 8% 8%

Central Discom 8% 8% 7% 7% 7% 8% 9% 10% 10% 10% 8% 8%

2.2. MPPTCL Losses

For computation of Intra-State Transmission Losses (MPPTCL Losses), the actual data has been taken from the MP-SLDC

online portal for the period October 2013 to September 2014 (52 weeks) and the average of the same has been considered

for the ensuing years. The computed average MPPTCL losses work out to be 3.00% and the same has been assumed to be

constant for FY 2014-15 and FY 2015-16.

Table 15: MPPTCL Losses: Past Data from MP-SLDC

Oct

13

Nov

13

Dec

13

Jan 14 Feb

14

Mar-

14

Apr-

14

May

14

June

14

July

14

Aug

14

Sep

14

Aver

age

MPPTCL

Losses 2.75% 3.75% 3.25% 3.25% 3.00% 3.00% 3.00% 2.75% 3.00% 2.50% 2.75% 3.00%

3.00

%

2.3. Distribution Losses

The Commission in its Regulations on “Terms and conditions for determination of tariff for supply and wheeling of

electricity and methods and principles of fixation of charges” on 29th November’12 has notified distribution loss levels for

the tariff period FY 2014-15 to FY 2015-16. The distribution loss level trajectory as specified in the Regulations is given

in the table below:

Table 16: Loss level targets (%) for Discoms (as per MPERC regulations)

Loss Targets FY '15 FY '16

East Discom 20.00% 18.00%

West Discom 18.00% 16.00%

Central Discom 21.00% 19.00%

2.3.1. Conversion of annual Distribution loss levels to monthly losses

The annual distribution loss trajectory is converted into monthly loss trajectory based on the standard deviations of

monthly losses from the cumulative annual losses during the past 5 years. In this method, the actual monthly loss levels

and the cumulative annual losses of the Discom for the past years are taken and standard deviation of loss levels of each

month from the cumulative annual average is calculated. The monthly standard deviations are then used to calculate the

monthly loss levels using the annual MPERC loss level trajectory.

As a result, the annual energy requirement at the Discom boundary is grossed up by a higher loss figure than observed as

per the MPERC loss trajectory.


44

The energy requirement is computed for all three Discoms and MP state at the state boundary as shown in tables below:

Table 17: Monthly energy requirement at Sate Boundary (MU) for FY'15- FY’16

Monthly energy requirement at Sate Boundary - FY '15

East

Discom April-14 May-14 June-14 July-14 August-14

September-

14 October-14

November-

14

December-

14 January-15

February-

15 March-15 Total

Sales

profile

8% 8% 7% 7% 7% 8% 8% 10% 9% 10% 9% 9% 100%

Sales (MUs) 1,073 1,073 939 939 939 1,073 1,073 1,341 1,207 1,341 1,207 1,207 13,411

Distributio

n loss

21.31% 20.89% 15.70% 17.18% 19.78% 20.35% 21.15% 21.07% 22.78% 21.59% 18.17% 20.03% 20.00%

Transmissi

on loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requiremen

t at state

boundary

1,406 1,398 1,148 1,169 1,206 1,389 1,403 1,752 1,611 1,763 1,521 1,556 17,321

West


September-

14 October-14

November-

14

December-

14 January-15

February-

15 March-15 Total

Sales

profile

8% 8% 7% 7% 8% 8% 8% 10% 9% 9% 9% 9% 100%

Sales (MUs) 1,278 1,278 1,118 1,118 1,278 1,302 1,278 1,597 1,437 1,437 1,437 1,437 15,993

Distributio

n loss

21.15% 23.47% 17.59% 7.93% 6.28% 10.10% 25.47% 25.24% 22.75% 23.72% 18.00% 14.29% 18.00%

Transmissi

on loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requiremen

t at state

boundary

1,670 1,721 1,398 1,252 1,405 1,493 1,767 2,202 1,918 1,942 1,807 1,729 20,305

Central


September-

14 October-14

November-

14

December-

14 January-15

February-

15 March-15 Total

Sales

profile

8% 8% 7% 7% 8% 8% 9% 9% 10% 10% 8% 8% 100%

Sales (MUs) 1,096 1,096 959 959 1,096 1,096 1,233 1,233 1,370 1,370 1,096 1,096 13,704

Distributio 21.02% 20.02% 19.89% 19.25% 20.86% 21.14% 22.51% 22.13% 21.57% 22.55% 21.20% 19.86% 21.00%


45

n loss

Transmissi

on loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requiremen

t at state

boundary

1,431 1,413 1,234 1,225 1,428 1,433 1,641 1,633 1,801 1,824 1,434 1,410 17,908

MP state April-14 May-14 June-14 July-14 August-14 September-

14 October-14

November-

14

December-

14 January-15

February-

15 March-15 Total

Sales (MUs) 3,447 3,447 3,016 3,016 3,313 3,471 3,584 4,171 4,015 4,149 3,740 3,740 43,108

Energy

requiremen

t at state

boundary

4,507 4,532 3,781 3,645 4,040 4,315 4,811 5,586 5,331 5,530 4,762 4,695 55,534

Monthly energy requirement at Sate Boundary - FY '16

East Discom April-15 May-15 June-15 July-15 August-15 September-

15 October-15

November-

15

December-

15 January-16

February-

16 March-16 Total

Sales profile 8% 8% 7% 7% 8% 8% 9% 9% 10% 10% 8% 8% 100%

Sales (MUs) 1,272 1,272 1,113 1,113 1,272 1,272 1,431 1,431 1,590 1,590 1,272 1,272 15,897

Distribution

loss

19.31% 18.89% 13.70% 15.18% 17.78% 18.35% 19.15% 19.07% 20.78% 19.59% 16.17% 18.03% 18.00%

Transmission

loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requirement

at state

boundary

1,625 1,616 1,329 1,353 1,595 1,606 1,824 1,823 2,069 2,038 1,564 1,600 20,041

West Discom April-15 May-15 June-15 July-15 August-15 September-

15 October-15

November-

15

December-

15 January-16

February-

16 March-16 Total

Sales profile 8% 8% 7% 7% 7% 8% 9% 10% 10% 10% 8% 8% 100%

Sales (MUs) 1,424 1,424 1,246 1,246 1,246 1,424 1,602 1,780 1,780 1,780 1,424 1,424 17,805

Distribution

loss

19.15% 21.47% 15.59% 5.93% 4.28% 8.10% 23.47% 23.24% 20.75% 21.72% 16.00% 12.29% 16.00%


46

Transmission

loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requirement

at state

boundary

1,816 1,870 1,522 1,366 1,342 1,598 2,159 2,391 2,316 2,345 1,748 1,674 22,148

Central


September-

15 October-15

November-

15

December-

15 January-16

February-

16 March-16 Total

Sales profile 8% 8% 7% 7% 7% 8% 9% 10% 10% 10% 8% 8% 100%

Sales (MUs) 1,323 1,323 1,157 1,157 1,157 1,323 1,488 1,654 1,654 1,654 1,323 1,323 16,535

Distribution

loss

19.02% 18.02% 17.89% 17.25% 18.86% 19.14% 20.51% 20.13% 19.57% 20.55% 19.20% 17.86% 19.00%

Transmission

loss

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Energy

requirement

at state

boundary

1,684 1,664 1,453 1,442 1,471 1,686 1,930 2,134 2,120 2,146 1,688 1,660 21,077

MP state April-15 May-15 June-15 July-15 August-15 September-

15 October-15

November-

15

December-

15 January-16

February-

16 March-16 Total

Sales (MUs) 4,019 4,019 3,517 3,517 3,676 4,019 4,521 4,865 5,024 5,024 4,019 4,019 50,237

Energy

requirement

at state

boundary

5,125 5,150 4,305 4,160 4,408 4,890 5,913 6,348 6,505 6,529 5,000 4,934 63,266


47

The ex-bus energy to be purchased in FY 16 is shown in the following table:

Table 18 Ex-bus energy purchases to be done in FY 16

Particulars MP State East West Central

Total Units sold to LT category (MU) 38,196 11,814 13,769 12,613

Total Units sold to HT category (MU) 12,041 4,083 4,035 3,922

Total Units Sold by Discom (MU) 50,237 15,897 17,805 16,535

Distribution loss (%) 18.14% 18.00% 16.00% 19.00%

Distribution loss (MU) 11,131 3,543 3,679 3,910

Units Input at Distribution Interface (MU) 61,368 19,440 21,484 20,445

Transmission loss (%) 3.00% 3.00% 3.00% 3.00%

Transmission loss (MU) 1,898 601 664 632

Input at MP State Periphery (MU) 63,266 20,041 22,148 21,077

WR-PGCIL Losses 3.83% 3.83% 3.83% 3.83%

ER-PGCIL Losses 2.50% 2.50% 2.50% 2.50%

External Loss (MU) 1,527 485 532 509

Total Units Purchased (MU) 64,793 20,526 22,680 21,587


48

3. Assessment of Availability

This section details the availability of power and related costs for the ensuing years for the state of Madhya Pradesh. The

forecast takes into account the following aspects:

Existing long term allocated generation capacity of MP

New generation capacity additions for FY ’15 and FY ’16 for MPPGCL , Central Sector, Joint venture, UMPP

Sassan and by private players awarded through competitive bidding

Impact of generation capacity allocation in WR and ER

Based on the above available information, power purchase for the ensuing years has been forecasted. The same has been

detailed in the subsequent sections.

3.1. Details of Generation Capacities allocated to Discoms

The various stations in which MP has been an allocated share and which are further allocated to the three MP Discoms are

listed in the table below. Allocation to the state of MP from Central Sector stations has been done by Western Regional

Power Committee in their letter No.WRPC/Comml-I/6/Alloc/2014/10874 dated 3rd

December 2014 and for Eastern

Region NTPC Kahalgaon 2 vide GoI MoP letter no. 5/31/2006-Th.2 dated 21st February 2007. As regards DVC, the

availability of 500 MW has been mentioned on the basis of following Power Purchase Agreements:

• 400 MW power as per PPA dated March 3rd, 2006 (200 MW each from MTPS units and CTPS units)

• 100 MW power as per PPA dated May 14th, 2007 (Durgapur Steel TPS).

It also includes the specific allocation of 200 MW to Bundelkhend Region as per the MPERC Retail order dated May 24,

2014 ( vide GoMP letter no- F-5-15/2011/13 dated May 22nd, 2014)

Table 19: Stations with MP Share which are allocated to MP Discoms

Station Region Ownership

Capacity

(MW)

MP Share

(%)

MP

Share

(MW)

MP Share Allocation to

Discoms (%)

EZ WZ CZ

NTPC-Korba WR NTPC 2,100 22.83% 479.48 32.00% 37.00% 31.00%

NTPC-Vindyachal I WR NTPC 1,260 35.04% 441.50 31.00% 32.00% 37.00%

NTPC-Vindyachal II WR NTPC 1,000 31.67% 316.71 30.00% 35.00% 35.00%

NTPC-Vindyachal III WR NTPC 1,000 24.65% 246.45 25.00% 40.00% 35.00%

NTPC-Kawas WR NTPC 656 21.34% 140.00 35.00% 40.00% 25.00%

NTPC-Gandhar WR NTPC 657 17.81% 117.00 32.00% 38.00% 30.00%

KAPP WR NPC 440 25.32% 111.40 25.00% 40.00% 35.00%

TAPS WR NPC 1,080 21.65% 233.78 25.00% 40.00% 35.00%

NTPC - Sipat Stage II WR NTPC 1,000 18.85% 188.48 30.00% 40.00% 30.00%

NTPC - Kahalgaon 2 ER NTPC 1,500 5.00% 74.98 27.00% 53.00% 20.00%

DVC (MTPS, CTPS) ER DVC 1,000 40.00% 400.00 33.00% 53.00% 14.00%

ATPS - Chachai-PH 1&2 State MPPGCL 240 100.00% 240.00 27.00% 33.00% 40.00%

ATPS - Chachai-Extn State MPPGCL 210 100.00% 210.00 27.00% 33.00% 40.00%

STPS - Sarani-PH 2 & 3 State MPPGCL 830 100% 830.00 29.00% 32.00% 39.00%

SGTPS - Bir'pur - Extn State MPPGCL 500 100.00% 500.00 28.00% 32.00% 40.00%

SGTPS - Bir'pur - PH 1 & 2 State MPPGCL 840 100.00% 840.00 28.00% 32.00% 40.00%


49

Station Region Ownership

Capacity

(MW)

MP Share

(%)

MP

Share

(MW)

MP Share Allocation to

Discoms (%)

EZ WZ CZ

CHPS-Gandhi Sagar State MPPGCL 115 50.00% 57.50 23.00% 27.00% 50.00%

CHPS-RP Sagar & Jawahar

Sagar State MPPGCL 271 50.00% 135.50 20.00% 30.00% 50.00%

Pench THPS State MPPGCL 160 66.67% 106.67 20.00% 40.00% 40.00%

Rajghat HPS State MPPGCL 45 50.00% 22.50 20.00% 40.00% 40.00%

Bargi HPS State MPPGCL 90 100.00% 90.00 25.00% 50.00% 25.00%

Banasgar Tons HPS State MPPGCL 315 100.00% 315.00 30.00% 40.00% 30.00%

Banasgar Tons HPS-Silpara State MPPGCL 30 100.00% 30.00 30.00% 40.00% 30.00%

Banasgar Tons HPS-

Devloned State MPPGCL 60 100.00% 60.00 30.00% 40.00% 30.00%

Marhi Khera HPS State MPPGCL 60 100.00% 60.00 30.00% 50.00% 20.00%

NHDC - Indira Sagar State JV 1,000 100.00% 1,000.00 22.00% 53.00% 25.00%

Captive State Others 17 100.00% 17.00 29.00% 41.00% 30.00%

Sardar Sarovar WR JV 1,450 57.00% 826.50 32.00% 43.00% 25.00%

Omkareshwar HPS State JV 520 100.00% 520.00 30.00% 45.00% 25.00%

UPPMCL(Rihand Matatila) State JV 55 100.00% 55.00 29.00% 38.00% 33.00%

Total 18,501

8,665

It is to be noted that allocation of infirm power to the state of MP is subject to changes as per WRPC/ERPC directives

from time to time. Therefore, for the purpose of forecasting the availability from the central stations the latest allocation

has been assumed for FY’16.

3.1.1. Availability from MP Discoms’ allocated stations

The table below provides details of the actual station-wise ex-bus energy (MUs) for FY 14 and the projections for FY 15

and for FY’16. The projections for FY 15 and for FY 16 are based on:

MPPGCL Stations - data provided by MPPGCL has been considered

Sardarsarovar, Omkareshwar and Indirasagar – design energy has been considered

All other stations –For old stations availability is taken at actual PAF as provided by State Planning Cell of

MPPMCL has been considered whereas for new stations normative PAF has been considered.

Table 20: Past and Projected ex-bus availability of Stations with MP Share which are allocated to MP Discoms (MU)

Station Projected Ex-Bus Availability (MUs)

FY ' 14 FY '15 FY '16

NTPC-Korba 3,492 3,523 3,179

NTPC-Vindyachal I 2,730 3,206 3,029

NTPC-Vindyachal II 2,272 2,336 2,314

NTPC-Kawas 227 618 442

NTPC-Gandhar 216 536 399

KAPP 851 757 835

TAPS 1,507 1,501 1,505

NTPC-Vindyachal III 1,797 1,902 1,873

NTPC - Sipat Stage II 1,184 1,223 1,217

NTPC - Kahalgaon 2 224 335 289

DVC (MTPS, CTPS) 2,270 2,514 2,347


50

Station Projected Ex-Bus Availability (MUs)

FY ' 14 FY '15 FY '16

ATPS - Chachai-PH 1&2 1,138 1,230 1,189

ATPS - Chachai-Extn 1,499 1,365 1,498

STPS - Sarani-PH 2 & 3 3,570 4,366 3,901

SGTPS - Bir'pur - Extn 3,451 3,397 3,209

SGTPS - Bir'pur - PH 1 & 2 3,863 4,749 4,127

CHPS-Gandhi Sagar 198 188 189

CHPS-RP Sagar & Jawahar Sagar 412 323 325

Pench THPS 283 207 210

Rajghat HPS 29 45 43

Bargi HPS 533 500 507

Banasgar Tons HPS 1,902 1,219 997

Banasgar Tons HPS-Silpara - - 135

Banasgar Tons HPS-Devloned - - 86

Marhi Khera HPS 135 76 74

NHDC - Indira Sagar 4,066 2,643 1,958

Captive 715 103 50

Sardar Sarovar 3,250 1,970 1,791

Omkareshwar HPS 1,620 1,249 1,156

UPPMCL(Rihand Matatila) - 150 289

Total 43,433 42,230 39,163

3.2. Details of Generation Capacities allocated to MPPMCL – Existing

and Capacity Addition till FY’16

The following table lists various stations in which MP has an allocated share and which are further allocated to MPPMCL.

All future capacities within the state or those with MP share are allocated to MPPMCL. The following table includes the

existing MPPMCL allocated stations as well as the future capacity additions which are expected to become operational till

end of FY’16. .

Table 21: Stations allocated to MPPMCL – Existing and Capacity Addition till FY’16

Sl.N

o.

Name of Project Unit Regi

on

Owner

ship

Capaci

ty

MP's

Share

COD/

Expect

ed

COD

Year-wise Capacity

Availability (MW)

(MW) (MW)

FY'14 FY’15 FY’16

1 NTPC Korba -III Unit 7 WR Central 500.00 77.00 Comm 77.00 77.00 77.00

2 NTPC Sipat Stage - 1 3 units WR Central 1,980.0

0

340.00 Comm 340.00 340.00 340.00

3 MPPGCL - Satpura TPS

Extension

Unit 10 State State 250.00 250.00 Comm 250.00 250.00 250.00

4 MPPGCL - Satpura TPS

Extension


5 MPPGCL - Shri Singaji STPS

Phase -1


6 MPPGCL - Shri Singaji STPS

Phase -1

Unit 2 State State 600.00 600.00 Comm - 600.00 600.00

7 NTPC Mouda STPS, Stage -1 Unit 1 WR Central 500.00 92.70 Comm 92.70 92.70 92.70


51

Sl.N

o.

Name of Project Unit Regi

on

Owner

ship

Capaci

ty

MP's

Share

COD/

Expect

ed

COD

Year-wise Capacity

Availability (MW)

(MW) (MW)

FY'14 FY’15 FY’16

8 NTPC Mouda STPS, Stage -1 Unit 2 WR Central 500.00 78.00 Comm 78.00 78.00 78.00

9 NTPC Vindhyanchal MTPS,

Stage - 4

Unit 1 WR Central 500.00 143.00 Comm 143.00 143.00 143.00

10 NTPC Vindhyanchal MTPS,

Stage - 4

Unit 2 WR Central 500.00 128.00 Comm 128.00 128.00 128.00

11 DVC DTPS Unit 1 ER JV 500.00 50.00 Comm 50.00 50.00 50.00

12 DVC DTPS Unit 2 ER JV 500.00 50.00 Comm 50.00 50.00 50.00

13 UMPP Sasan Unit 1 WR Private 660.00 247.00 Comm 247.00 247.00 247.00

14 UMPP Sasan Unit 2 WR Private 660.00 248.00 Comm 248.00 248.00 248.00

15 UMPP Sasan Unit 3

& 4

WR Private 1,320.0

0

495.00 Comm 247.50 495.00 495.00

16 UMPP Sasan Unit 5

& 6

WR Private 1,320.0

0

495.00 Unit 5-

Nov 14

& Unit

6- Mar

15

- 247.50 495.00

17 Jaypee Bina Power Unit 1

& Unit

2

State Private 500.00 350.00 Comm 350.00 350.00 350.00

18 Jaiprakash Power, Nigri Unit 1 WR Private 660.00 248.00 Comm - 248.00 248.00

19 Jaiprakash Power, Nigri Unit 2 WR Private 660.00 247.00 Feb-15 - 247.00 247.00

20 MB Power Unit 1 WR Private 600.00 210.00 Dec-14 - 210.00 210.00

21 MB Power Unit 2 WR Private 600.00 210.00 Dec-15 - - 210.00

22 BLA Power Unit 1 State Private 45.00 16.00 Comm 16.00 16.00 16.00

23 BLA Power Unit 2 State Private 45.00 16.00 Mar-15 - - 16.00

24 Jhabua Power Unit 1 WR Private 600.00 210.00 Mar-15 - - 210.00

25 Lanco Amarkantak Unit 1 WR Private 300.00 300.00 Comm 300.00 300.00 300.00

26 Sugen Torrent Unit 2 WR Private 382.50 100.00 Comm 100.00 100.00 100.00

27 Renewable Energy - Solar NA State Private - 370.25 - 161.50 255.00 370.25

28 Renewable Energy - Other than

Solar

NA State Private - 847.05 - 423.40 600.34 847.05

Total 7,298 4,182 6,253 7,298

*Comm-Plants already commissioned hence date of COD not mentioned.

3.2.1. Availability from MPPMCL allocated stations

Availability from MPPMCL allocated stations for FY 2014-15 till FY 2015-16 has been assumed as per the

projections provided by the State Planning Cell of MPPMCL, which are based on the number of days in the month

of operation in any year.

The ex-bus availability for FY 2013-14, FY 2014-15 (for existing MPPMCL allocated stations) and projections for

FY 2015-16 are tabulated below:


52

Table 22: Stations allocated to MPPMCL – Projected-Ex Bus Availability till FY’16 (MU)

S.No. Name of Project Unit Projected Ex-Bus Availability (MUs)

FY '14 FY '15 FY '16

1 NTPC Korba –III Unit 7 526 581 757

2 NTPC Sipat Stage - 1 3 units 1,981 2,230 2,264

3 MPPGCL - Satpura TPS Extension Unit 10 396 1,603 1703

4 MPPGCL - Satpura TPS Extension Unit 11 - 1,402 1703

5 MPPGCL - Shri Singaji STPS Phase -1 Unit 1 - 3,804 4133

6 MPPGCL - Shri Singaji STPS Phase -1 Unit 2 - 1,472 4133

7 NTPC Mouda STPS, Stage -1 Unit 1 117 607 647

8 NTPC Mouda STPS, Stage -1 Unit 2 - 485 647

9 NTPC Vindhyanchal MTPS, Stage - 4 Unit 1 979 935 981

10 NTPC Vindhyanchal MTPS, Stage - 4 Unit 2 - 812 952

11 DVC DTPS Unit 1 226 318 293

12 DVC DTPS Unit 2 - 318 293

13 UMPP Sasan Unit 1 955 1,651 1,706

14 UMPP Sasan Unit 2 - 1,572 1,505

15 UMPP Sasan Unit 3 & 4 - 2,320 3,023

16 UMPP Sasan Unit 5 & 6 - 652 3,333

17 Jaypee Bina Power Unit 1 & Unit 2 1330 2244 2320

18 Jaiprakash Power, Nigri Unit 1 - 1,299 1,662

19 Jaiprakash Power, Nigri Unit 2 - 741 1,656

20 MB Power Unit 1 - 984 1,408

21 MB Power Unit 2 - - 280

23 BLA Power Unit 1 147 99 104

24 BLA Power Unit 2 - 7 73

25 Jhabua Power Unit 1 - 6 1,348

26 Lanco Amarkantak Unit 1 2,067 1,945 2,066

27 Sugen Torrent Unit 2 258 17 256

28 Renewable Energy - Solar NA - 489 541

29 Renewable Energy - Other than Solar NA - 1,337 1,670

Total 8,981 29,928 41,457

3.3. Overall availability

The overall availability for MP State (from stations allocated to Discoms as well as stations allocated to MPPMCL)

for FY 2014, FY 2015 and FY 2016 is summarized in the below table:

Table 23: Overall availability till FY’16 (MU)

Category FY '14 FY '15 FY '16

Availability from Stations allocated to MP

Discoms 43,433 42,230 39,163

Availability from Stations allocated to MPPMCL 8,981 29,928 41,457

Total 52,414 72,158 80,620


53

3.4. Inter-State Transmission Losses

The Inter-State transmission losses have been computed separately for Eastern Region and Western Region stations. For

the Western Region, data for past 52 weeks (4-Nov-13 to 9-Nov-14) as available on the POSOCO/ NLDC website has

been taken and an average loss level of 3.83% has been considered for FY 2014-15 and FY 2015-16. Similarly, for

Eastern Region, average transmission line loss of 2.09% has been considered for FY 2014-15 and FY 2015-16.

3.5. Management of Surplus Energy

As per the power supply position, the state is expected to have surplus energy in most of the months in the ensuing year.

Currently MPPMCL disposes the surplus power through power exchange (IEX) at the prevailing rates. MPPMCL tries to

sell such surplus power at a cost which is determined by the market conditions prevailing at that time. The current rate at

which the surplus power is sold at IEX is Rs 2.94 per unit.

The energy surplus of the Discoms vis-à-vis overall energy availability and energy requirement as well as the details of

revenue from sale of energy are shown in the table below. This revenue has been subtracted from the variable power

purchase costs of MPPMCL allocated stations, while computing the total power purchase costs of the Discoms.

Table 24: Management of Surplus Energy with Discoms for FY'15 and FY'16

Particulars Units FY'16

Ex-bus energy available MU 76,836

Ex-bus energy required by Discoms MU 64,793

Surplus Energy MU 12,043

Rate of Sale of Surplus Energy at IEX Rs. per unit 2.94

Revenue from Sale of Surplus Energy through IEX Rs. Cr. 3,540.56

3.6. MoD and BackDown

After fully meeting the requirement of the State and selling power on the power exchange, the Petitioner still has to back-

down plants so as to save on the variable costs being incurred. The Petitioner has applied month-wise merit order dispatch

principle on the basis of variable costs for FY 2015-16, after considering both Discom allocated generating stations as well

as MPPMCL allocated generating stations. The Petitioner has also considered partial backing down of units/stations which

are higher up in the MoD, during those periods when their running is not required to meet the demand in that period and

the market rates do not justify their running either. This addresses demand fluctuations and ensures that power procured

from cheaper sources is fully utilized and avoids procurement of power from costlier sources. The resultant benefit of

reduced power procurement cost or sale at a higher rate, whichever the case maybe, is in turn being passed on to the

consumers.

The following table shows the station wise availability of Discom allocated stations and MPPMCL allocated stations after

application of merit order dispatch and backdown for FY 2015-16:


54

Table 25 Ex-bus availability after backdown (MU)

Station Availability (MUs)

KAPP 835

TAPS 1,505

CHPS-Gandhi Sagar 189

CHPS-RP Sagar & Jawahar Sagar 325

Pench THPS 210

Rajghat HPS 43

Bargi HPS 507

Banasgar Tons HPS 997

Banasgar Tons HPS-Silpara 135

Banasgar Tons HPS-Devloned 86

Marhi Khera HPS 74

UPPMCL(Rihand Matatila) 289

Sugen Torrent 256

Renewable Energy - Solar 541

Renewable Energy - Other than Solar 1,670

Omkareshwar HPS 1,156

NHDC - Indira Sagar 1,958

Sardar Sarovar 1,791

NTPC Korba -III 757

NTPC-Korba 3,179

Jaiprakash Power, Nigri Unit 1 1,662

Jaiprakash Power, Nigri Unit2 1,656

UMPP Sasan Unit 1 1,706

UMPP Sasan Unit2 1,505

UMPP Sasan Unit 3&4 3,023

UMPP Sasan Unit 5&6 3,333

ATPS - Chachai-Extn 1,498

NTPC Sipat Stage - 1 2,264

ATPS - Chachai-PH 1&2 1,189

NTPC - Sipat Stage II 1,217

MB Power Unit 1 1,408

MB Power Unit 2 280

Jhabua Power 1,348

Lanco Amarkantak 2,066

NTPC Vindhyanchal MTPS, Stage - 4 Unit 1 981

NTPC Vindhyanchal MTPS, Stage - 4 Unit 2 952

NTPC-Vindyachal II 2,314

NTPC-Vindyachal III 1,873

MPPGCL - Satpura TPS Extension Unit 10 1,567

MPPGCL - Satpura TPS Extension Unit 11 1,567

NTPC-Vindyachal I 3,029


55

MPPGCL - Shri Singaji STPS Phase -1 Unit 1 2,876

MPPGCL - Shri Singaji STPS Phase -1 Unit 2 2,847

STPS - Sarani-PH 2 & 3 3,901

DVC (MTPS, CTPS) 2,347

BLA Power Unit 1 104

BLA Power Unit 2 73

Captive 50

SGTPS - Bir'pur - Extn 3,209

Jaypee Bina Power Unit 1 & Unit 2 2320

NTPC - Kahalgaon 2 289

DVC DTPS Unit 1 293

DVC DTPS Unit 2 293

SGTPS - Bir'pur - PH 1 & 2 4,127

NTPC-Gandhar 399

NTPC-Kawas 442

NTPC Mouda STPS, Stage -1 Unit 1 163

NTPC Mouda STPS, Stage -1 Unit 2 163

Total 76,836

3.7. Energy Balance

3.7.1. Energy Requirement vis-à-vis Availability and Management of Shortfall

It is submitted that the energy requirement at Ex-bus of the three Discoms have been estimated to ensure that Discom-wise

shortfall or surplus of energy could be ascertained for planning the power procurement. Accordingly, the Discom-wise

break-up of energy envisaged to be procured from various sources is shown in table below.

Table 26: Ex-Bus Purchases by Discoms from Various Sources

Particulars East Discom (MU)

FY '16

Energy Requirement Ex-Bus 20,526

Purchase from Discom Allocated Stations 9,622

Purchase from MPPMCL allocated Stations 10,905

Shortfall

-

Balance through STPP

-

Particulars West Discom (MU)

FY '16




Shortfall

-



56

-

Particulars Central Discom (MU)

FY '16




Shortfall

-


-

Particulars MP State (MU)

FY '16




Shortfall

-


-


57

4. Power Purchase Costs

4.1. Details of Costs for Stations allocated to MP Discoms

The fixed and variable costs of all stations have been considered as per the following methodology:

Discom allocated stations and a few MPPMCL allocated stations have been taken as per the last 12 months bills

i.e. from Oct 13 to Sep 14.

Fixed and variable costs of some MPPMCL allocated stations have been considered as per their respective

MPERC tariff orders. Details of such Tariff orders are mentioned below:

Table 27 Tariff orders of MPPMCL allocated stations

The following table provides a summary of fixed and variable costs for the Discom allocated stations:

Table 28: Fixed and Variable Costs of Discom Allocated Stations for FY 2015-16

Station Fixed Charges Variable Charge

(Rs. Cr.) (Rs./ kWh)

NTPC-Korba 200.83 1.01

NTPC-Vindyachal I 208.45 1.73

NTPC-Vindyachal II 150.83 1.64

NTPC-Kawas 83.64 2.66

NTPC-Gandhar 92.60 2.66

KAPP - 2.38

TAPS - 2.85

NTPC-Vindyachal III 199.81 1.64

NTPC - Sipat Stage II 175.36 1.58

NTPC - Kahalgaon 2 62.18 2.61

DVC (MTPS, CTPS) 440.80 2.28

ATPS - Chachai-PH 1&2 81.67 1.56

ATPS - Chachai-Extn 209.11 1.41

STPS - Sarani-PH 2 & 3 259.45 2.00

SGTPS - Bir'pur – Extn 442.92 2.50

SGTPS - Bir'pur - PH 1 & 2 346.40 2.73

CHPS-Gandhi Sagar 17.94 -

CHPS-RP Sagar & Jawahar Sagar 48.89 -

Pench THPS 22.28 -

Rajghat HPS 8.10 -

Station Petition No. Order Dated

MPPGCL - Satpura TPS Extension,

Unit 10

11 of 2013 08th October 2013

MPPGCL - Shri Singaji STPS Phase -

1, Unit 1

05 of 2014 10th November 2014

Jaypee Bina Power (Unit 1 & Unit 2) 40 of 2012 26th November 2014

Jaiprakash Power, Nigri (Unit 1 &

Unit 2)

03 of 2014 26th September 2014

BLA Power, Unit 1 28 of 2012 24th July 2012


58

Bargi HPS 30.92 -

Banasgar Tons HPS 167.30 -

Banasgar Tons HPS-Silpara 15.93 -

Banasgar Tons HPS-Devlond 31.87 -

Marhi Khera HPS 36.23 -

NHDC - Indira Sagar 533.50 0.38

Captive - 2.45

Sardar Sarovar 162.50 0.93

Omkareshwar HPS 421.56 0.31

UPPMCL(Rihand Matatila) 5.001 -

1 Bill of O&M charges towards supply of MP share of power from Rihand & Matatila HPS from FY 2008-09 to FY 2013-14 up to

August 2014 amounting to RS 24.20 Cr has been raised by Uttar Pradesh Jal Vidyut Nigam Limited (UPJVNL). Accordingly

proportionate annual cost has been considered as a fixed charge


59

The following table provides a summary of fixed and variable costs of each of the MPPMCL allocated stations:

Table 29: Fixed and Variable Costs of MPPMCL allocated stations

Name of Project Unit

MP

Share

(MW)

Fixed

Charges

(Rs. Cr.)

for

FY'16

Remarks

Variable

Charges

(Rs./

kWh) for

FY '16

Remarks

NTPC Korba -III Unit 7 77.00 90.04

As per Actual Bills from Oct-13

To Sept.-14 1.00


To Sept.-14

NTPC Sipat Stage - 1 3 units 340.00 348.76


To Sept.-14 1.47


To Sept.-14

MPPGCL - Satpura

TPS Extension

Unit

10 250.00 304.29

As per MPERC Tariff Order

dated 8/10/2013 1.78


dated 8/10/2013

MPPGCL - Satpura

TPS Extension

Unit

11 250.00 304.29 Taken same as Unit 1 1.78 Taken same as Unit 1

MPPGCL - Shri Singaji

STPS Phase -1 Unit 1 600.00 684.40


dated 10/11/2014 1.86


dated 10/11/2014

MPPGCL - Shri Singaji

STPS Phase -1 Unit 2 600.00 684.40 Taken same as unit 1 1.86 Taken same as unit 1

NTPC Mouda STPS,

Stage -1 Unit 1 92.70 126.33


To Sept.-14 3.56


To Sept.-14

NTPC Mouda STPS,

Stage -1 Unit 2 78.00 126.33 Taken same as unit 1 3.56 Taken same as unit 1

NTPC Vindhyanchal

MTPS, Stage - 4 Unit 1 143.00 219.34


To Sept.-14 1.63


To Sept.-14

NTPC Vindhyanchal

MTPS, Stage - 4 Unit 2 128.00 219.34 Taken same as unit 1 1.63 Taken same as unit 1

DVC DTPS Unit

1&

Unit 2

100 123.02 As per Actual Bills from Oct-13

To Sept.-14 2.65


To Sept.-14

UMPP Sasan Unit 1 247.00 28.98

Calculated As per Tariff quoted

in accepted bid 1.149

As per Tariff quoted in accepted

bid

UMPP Sasan Unit 2 248.00 26.05


in accepted bid

1.149 As per Tariff quoted in accepted

bid

UMPP Sasan

Unit 3

& 4 495.00 51.68


in accepted bid


bid

UMPP Sasan

Unit 5

& 6 495.00 57.04


in accepted bid


bid

Jaypee Bina Power

Unit 1

& Unit

2

350.00 518.58 As per MPERC order dated

26/11/14

2.65 As per Actual Bills from Oct-

13 To Sept.-14

Jaiprakash Power, Nigri Unit 1 248.00 313.16

As per MPERC tariff order

dated 26/09/2014 1.17


dated 29/09/2014

Jaiprakash Power, Nigri Unit 2 247.00 313.16


dated 26/09/2014 1.17


dated 29/09/2014

MB Power Unit 1

210.00 239.54

As per per MW rate of Shri

Singaji Thermal Power Project

according to MPERC order

dated 10/11/20142

1.61 Taken as per Lanco Amarkantak

MB Power Unit 2

210.00 59.89




dated 10/11/20143 for 3months

during the year i.e. 1/4th of year


BLA Power

Unit 1 16.00 19.01


dated 24/07/2012 2.37


To Sept.-14

2 Per MW rate of Shri Singaji Thermal Power Project is Rs 1.14 (Rs 684/600 MW)



60

Name of Project Unit

MP

Share

(MW)

Fixed

Charges

(Rs. Cr.)

for

FY'16

Remarks

Variable

Charges

(Rs./

kWh) for

FY '16

Remarks

BLA Power Unit 2 16.00 19.01 Same As Unit no.-I 2.37 Same As Unit no.-I

Jhabua Power Unit 1

210.00 239.54




dated 10/11/20144


Lanco Amarkantak Unit 1 300.00 323.14


To Sept.-14 1.61


To Sept.-14

Sugen Torrent Unit 2 100.00 86.23


To Sept.-14 6.42


To Sept.-14

Renewable Energy -

Solar NA 370.25 413.30

Taken at 7.6329 per unit for

541.47 MU's - -

Renewable Energy -

Other than Solar NA 847.05 824.98

Taken at 4.945 per unit for 1670

MU's - -

The following table shows the Total costs (fixed costs and variable costs) of Discom allocated stations

Table 30 Total Fixed Costs and Variable Costs of Discom Allocated Stations

Sl.N

o Stations Fixed Costs (Rs Cr) Variable Costs (Rs Cr)

East West Central Total East West Central Total

1 NTPC-Korba 64 74 62 201 103 119 100 321

2 NTPC-Vindyachal I 65 67 77 208 162 168 194 524

3 NTPC-Vindyachal II 45 53 53 151 114 133 133 379

4 NTPC-Kawas 29 33 21 84 3 4 2 9

5 NTPC-Gandhar 30 35 28 93 4 5 4 13

6 KAPP - - - - 50 80 70 199

7 TAPS - - - - 107 172 150 430

8 NTPC-Vindyachal III 50 80 70 200 77 123 108 307

9 NTPC - Sipat Stage II 53 70 53 175 58 77 58 193

10 NTPC - Kahalgaon 2 17 33 12 62 5 10 4 19

11 DVC (MTPS, CTPS) 145 234 62 441 88 141 37 266

12 ATPS - Chachai-PH 1&2 22 27 33 82 50 61 74 185

13 ATPS - Chachai-Extn 56 69 84 209 57 70 85 211

14 STPS - Sarani-PH 2 & 3 75 83 101 259 147 162 197 506

15 SGTPS - Bir'pur - Extn 124 142 177 443 82 93 117 291

16 SGTPS - Bir'pur - PH 1 & 2 97 111 139 346 76 87 109 272

17 CHPS-Gandhi Sagar 4 5 9 18 - - - -

18 CHPS-RP Sagar & Jawahar

Sagar 10 15 24 49 - - - -

19 Pench THPS 4 9 9 22 - - - -

20 Rajghat HPS 2 3 3 8 - - - -

21 Bargi HPS 8 15 8 31 - - - -

22 Banasgar Tons HPS 50 67 50 167 - - - -



61

Sl.N

o Stations Fixed Costs (Rs Cr) Variable Costs (Rs Cr)

East West Central Total East West Central Total

23 Banasgar Tons HPS-Silpara 5 6 5 16 - - - -

24 Banasgar Tons HPS-

Devloned 10 13 10 32 - - - -

25 Marhi Khera HPS 11 18 7 36 - - - -

26 NHDC - Indira Sagar 117 283 133 533 16 39 18 74

27 Captive - - - - 1 2 1 4

28 Sardar Sarovar 52 70 41 162 53 71 41 166

29 Omkareshwar HPS 126 190 105 422 11 16 9 36

30 UPPMCL(Rihand Matatila) 1 2 2 5 - - - -

Total 1,273 1,806 1,377 4,456 1,263 1,631 1,510 4,404

The following table shows the Total costs (i.e. fixed costs and variable costs) of MPPMCL allocated stations

Table 31 Total Fixed and Variable Costs of fixed and variable costs of MPPMCL allocated stations

Sl.No Stations Fixed Costs (Rs Cr) Variable Costs (Rs Cr)

1 NTPC Korba -III 90 76

2 NTPC Sipat Stage - 1 349 332

3 MPPGCL - Satpura TPS Extension , Unit 10 304 279

4 MPPGCL - Satpura TPS Extension , Unit 11 304 279

5 MPPGCL - Shri Singaji STPS Phase -1 , Unit 1 684 490

6 MPPGCL - Shri Singaji STPS Phase -1 , Unit 2 684 415

7 NTPC Mouda STPS, Stage -1 , Unit 1 112 18

8 NTPC Mouda STPS, Stage -1 , Unit 2 112 -

9 NTPC Vindhyanchal MTPS, Stage – 4, Unit 1 219 160

10 NTPC Vindhyanchal MTPS, Stage - 4 , Unit 2 219 155

11 DVC DTPS , Unit 1 62 19

12 DVC DTPS , Unit 2 62 19

13 UMPP Sasan , Unit 1 29 196

14 UMPP Sasan , Unit 2 26 173

15 UMPP Sasan , Unit 3 & 4 52 347

16 UMPP Sasan , Unit 5 & 6 57 383

17 Jaypee Bina Power , Unit 1 & Unit 2 520 183

18 Jaiprakash Power, Nigri , Unit 1 313 195

19 Jaiprakash Power, Nigri , Unit 2 313 194

20 MB Power , Unit 1 240 227

21 MB Power , Unit 2 60 45

22 BLA Power , Unit 1 19 8

23 BLA Power , Unit 2 19 6

24 Jhabua Power, 240 217

25 Lanco Amarkantak 323 333

26 Sugen Torrent 86 164


62

Sl.No Stations Fixed Costs (Rs Cr) Variable Costs (Rs Cr)

27 Renewable Energy - Solar 413 -

28 Renewable Energy - Other than Solar 825 -

Total 6,735 4913

The above MPPMCL costs after being adjusted for Surplus are again distributed among the three Discoms according to the

weighted average allocation percentage as per the GoMP notification no- F-5-15/2011/13 dated May 22nd, 2014. The

following table shows the segregation of MPPMCL costs among the three Discoms.

Costs Amount in Rs Cr

Fixed Cost 6,735

Variable Cost 4913

Total Costs 11,648

Revenue from sale of surplus (3,541)

Net MPPMCL Costs 8,108

Additional RPO obligation 494

Total MPPMCL Costs 8,602

Share of :

East Discom 2,449

West Discom 3,241

Central Discom 2,911


63

4.2. RPO Cost

The Commission has notified MPERC (Co-generation and generation of electricity from Renewable sources of energy)

(Revision-I) regulation, 2010 on November 19, 2010. The Commission has considered procurement of power from

renewable energy sources through PPA or short term market to ensure RPO compliance.

As per regulation 4.1 of notified MPERC (Co-generation and generation of electricity from Renewable sources of energy)

(Revision-I) regulation, 2010, the minimum quantum of electricity for FY 2014-15 is 1% for Solar and 6% for Non-solar.

The same has been considered for projection of RPO cost for FY 2015-16.

Accordingly the Petitioner has calculated the RPO requirement (which is already included in the power purchase cost) is

shown in the following table:

Table 32: RPO Obligation for FY 16

Renewable Purchase Obligation Computations FY 14 FY 15 FY 16

Solar % 0.80% 1.00% 1.00%

Other than Solar % 4.70% 6.00% 6.00%

Total % 5.50% 7.00% 7.00%

Ex-bus renewable energy requirement to fulfill RPO (MU)

Solar MU 405 563 648

Other than Solar MU 2,376 3,378 3,888

Total MU 2,781 3,941 4,536

Energy Available from existing Renewable Sources

Solar MU - 489 541

Other than Solar MU 62 1,337 1,670

Total MU 62 1,826 2,211

Shortfall

Solar MU 405 74 106

Other than Solar MU 2,315 2,041 2,218

Total MU 2,719 2,115 2,324

Extra Surplus available after meeting RPO obligations MU 2,719 2,115 2,324

IEX rate Rs/unit 2.94 2.94 2.94

Additional revenue from sale of surplus due to RPO obligation Rs Cr 799.48 621.82 683.27

Renewable Energy purchase Rates

Solar Rs./unit 8.50 8.05 7.64

Other than Solar Rs./unit 2.50 3.89 4.94

Additional Cost due to RPO Obligation

Solar Rs. Cr. 343.83 59.57 81.34

Other than Solar Rs. Cr. 578.71 793.96 1,095.49

RE Power Purchase from new/other sources to fulfill RPO Rs. Cr. 922.54 853.54 1,176.83

Revenue from sale of surplus units Rs Cr (799.48) (621.82) (683.27)

Net RE Power Purchase from new/other sources to fulfill RPO Rs. Cr. 123.05 231.71 493.56


64

4.3. Estimation of Other Power Purchase Costs

4.3.1. Inter-State Transmission Charges

The Inter-State transmission charges to be paid by MP consist of charges to be paid for transmission system of WR and

ER. The actual inter-state transmission charges for FY 14 amounted to Rs 1,165 Cr and the actual interstate transmission

charges for FY 2014-15 up to November 2014 amounted to Rs 855.76 Cr whereas such charges for FY 14 up to November

2013 amounted to Rs 735.49 Cr. This suggests an increase in inter-state transmission charges by 16.35% and the same has

been considered for projecting the Interstate transmission charges for FY 15 and FY 16.

Thus, the estimated Interstate transmission charges for FY 2014-15 and FY 2015-16 amount to Rs 1,356 Cr and Rs

1,577 Cr respectively. These costs have then been allocated to Discoms based on past trend of actual costs.

Table 33: Inter-State Transmission Charges

Discom Inter-State Transmission Charges(Rs Cr)

FY 14 FY '15 FY '16

East Discom 327 419 487

West Discom 439 532 619

Central Discom 399 404 471

Total 1,165 1,356 1,577

4.3.2. Intra-State Transmission Charges – MPPTCL fixed costs excluding Terminal

Benefits (Cash Outflow)

For the purpose of calculation of intra-state transmission costs, the various expense items of MPPTCL (other than

terminal benefits liabilities) have been taken as approved by MPERC via MYT Tariff Order for MPPTCL dated 2nd

April’13.

The table below consists of two main components:

1. MPPTCL fixed costs as approved by MPERC in its order dated 2nd

April’13

2. SLDC charges as approved by MPERC via its order dated June 18, 2014 to the tune of Rs. 7.79 Crores have

been considered for FY’15. For FY’16, the annual SLDC charges have been computed based on the

transmission capacity of Discoms and the rate for Long-term Access Customers of Rs. 5933.54/ MW as

approved by MPERC in the SLDC tariff order for FY 15 .

Table 34: Intra-state Costs – excluding Terminal Benefits

Sr.No. Particulars

FY13-14

(MPERC

order)

Rs Cr

FY14-15

(MPERC

order)

Rs Cr

FY15-16

(MPERC

order)

Rs Cr

1 O&M Expenses 318.00 353.49 390.09

2 Depreciation 261.35 282.87 297.16

3 Interest & Finance charges 102.91 100.62 92.92

4 Interest on working capital 46.97 49.95 52.69

5 Return on Equity 265.19 285.38 305.57

6 MPERC Fees & Taxes 1.04 1.15 1.27


65

Sr.No. Particulars

FY13-14

(MPERC

order)

Rs Cr

FY14-15

(MPERC

order)

Rs Cr

FY15-16

(MPERC

order)

Rs Cr

7 Less Non- tariff income -29.97 -25.47 -20.98

A MPPTCL fixed cost approved by MPERC ( excluding terminal benefits) 965.49 1,047.99 1,118.72

SLDC Charges 8.03 7.79 9.60

B Intra-State Transmission Charges allocated to Discoms

( excluding terminal benefits) 973.52 1,055.78 1,128.32

4.3.3. Intra-State Transmission Charges – Terminal Benefits (Cash Outflow) to be

included in MPPTCL costs

As per the provisions of the regulations, the liability towards pension and other Terminal Benefits of the Pensioners

and Personnel of the Board and its Successor Entities shall comprise of cash outflow in each fiscal year for making

payment to all the Pensioners including Existing Pensioners subject to the provision of Regulation 3 (8)

As per the regulations, the aforementioned terminal benefits cash outflow has three parts:

a. For employees who have retired up to 01.06.2005 for services rendered up to 01.06.2005

b. For employees who will retire after 01.06.2005 for services rendered up to 01.06.2005

c. For employees who will retire after 01.06.2005 for services rendered after 01.06.2005

In the Retail Supply Tariff order for FY 2014-15, Hon’ble Commission under 3.120 stated as below:

“The Commission has allowed the terminal benefits and pension expenses for the FY 2014-15 on provisional basis on

‘pay as you go’ principle under the transmission charges.”

The Discoms, after consideration of the above fact, hereby submit that the Terminal Benefits as allowed by the Hon’ble

Commission are not sufficient to meet the actual cash outflow of the State Power Sector Utilities. The actual cash outflow

for Terminal Benefits for FY’14 and for 5 months of FY’15 is shown in the table below:

Table 35: Actual Cash Outflow towards Terminal Benefits for all State Power Sector Utilities

MPGenco

Rs Cr

MPTransco

Rs Cr

East Discom

Rs Cr

Central Discom

Rs Cr

West Discom

Rs Cr

MPPMCL

Rs Cr Total

Rs Cr

1 Terminal Benefits (Cash Outflow) -

FY'14 - as per actuals 91.64 83.72 226.42 196.15 270.68 71.33 939.94

Terminal Benefits (Cash Outflow) -

FY'15 - 5 months as per actuals

Apr-14 9.36 5.77 20.87 16.59 23.72 5.38 81.69

May-14 10.78 6.82 22.07 20.74 27.22 6.44 94.07

Jun-14 10.82 8.02 20.60 18.76 25.51 5.72 89.42

Jul-14 11.21 6.32 20.33 19.11 23.95 5.34 86.26

Aug-14 10.94 5.76 18.96 20.83 24.63 5.33 86.44

Total - 5 months of FY'15 53.11 32.69 102.84 96.03 125.02 28.19 437.87

Average Terminal Benefits (Cash

Outflow) per month for FY'15 87.57


FY'15 - estimated 1,050.89


FY'16 - estimated assuming an overall

increase of 10% compared to FY'15 1,155.98


66

As shown in the table above, the actual Terminal benefits for FY 14 amounts to Rs 939.94 Cr and the actual up to August

2014 amount to Rs 437.87 Cr. For projecting such costs for FY 15 the actual up to August 2014 were aggregated for the

whole year computed as Rs 1050.89 Crores.

For projecting the cash outflow towards Terminal Benefits for FY 16, a growth rate of 10% has been assumed even

though the actual increase is close to 12% in FY’15 compared to FY’14.

The following table shows the detail of total Intra-state Transmission Costs including the Terminal Benefits (Cash

Outflow) and its allocation amongst Discoms based on the past trend:

Table 36: Total Intra-State Transmission Costs and Allocation to Discoms (Rs Cr)

Sr.No. Particulars FY 14 FY 15 FY 16

A Intra-State Transmission Charges allocated to Discoms

( excluding terminal benefits) – as approved by MPERC 973.52 1055.78 1128.32

Terminal Benefits (Cash Outflow) 939.93 1050.89 1155.98

B Total Intra-State Transmission Charges (including Terminal Benefits) 1,913.45 2,106.67 2,284.30

Allocation to Discoms

East Discom 571.93 629.68 682.78

West Discom 739.33 813.99 882.65

Central Discom 602.19 663.00 718.83

Total 1,913.45 2,106.67 2,284.30

Besides the above costs, it is pertinent to mention here that as part of Terminal Benefits, following are due and

payable by Discoms but these are not included as part of ARR in the current petition:

1. Terminal Benefits (Provisions) towards contribution of pension fund. These liabilities are detailed in Chapter 10

of this petition but have not been considered as part of ARR.

2. An amount of Rs. 30 Crores to become due in FY’15 against commutation of pension on application of

pensioners.

Any difference over and above the claimed amount towards Terminal Benefits is proposed to be filed as true-up petitions

for the respective years.


67

4.3.4. MPPMCL Costs

The details of the MPPMCL expenses that have been allocated to Discoms for the MYT years are related to the various

roles, responsibilities and administrative functions of MPPMCL and have been detailed in the Chapter 8. These expenses

are allocated to the three Discoms based on the total energy requirement at state boundary.

The details of these expenses and Discoms allocation are given in the table below:

Table 37: MPPMCL Costs: Details and Discoms Allocation (Rs Cr)

Particulars FY '14 FY '15 FY '16

(Actual) (Estimated) (Estimated)

Purchase of Power 598.38 62.27 68.50

Inter-State Transmission Charges 114.91 124.02 133.85

Depreciation Expenses 1.73 1.90 2.09

Interest and Finance Charges 68.30 89.08 81.89

Repairs and Maintenance Expenses 1.66 1.79 1.93

Employee Expenses 54.57 56.20 57.89

A&G Expenses 13.04 14.07 15.19

Other Expenses 1.51 1.63 1.76

MPPMCL Costs 854.10 350.97 363.10

Allocation to Discoms

FY '14 FY '15 FY '16

East Discom 257.59 109.60 115.07

West Discom 329.42 128.04 126.89

Central Discom 267.09 113.33 121.14

Total 854.10 350.97 363.10


68

4.3.5. Total Power Purchase Costs

Based on the various cost components discussed above, the tables below detail the total power purchase cost for MP state

and for each of the discoms.

Table 38: Total Power Purchase Costs - FY'15 to FY'16

Particulars East Discom

FY 14 FY 15 FY 16

A Ex-bus Units Purchased (MU) 15,251 17,560 20,526

B Fixed Cost (Rs. Crs.) 1,270.25 1,319.41 1,273.01

C Variable Cost (Rs. Crs.) 2,408.35 2,739.38 3,712.20

D MPPMCL costs 257.59 109.47 115.02

E =

B+C+D

Total Power Purchase Cost - Ex Bus (Rs. Crs.) 3,936.20 4,168.26 5,100.23

E/A Rate of Power Purchase (Rs. / kWh) 2.58 2.37 2.48

H External Losses (MU) 287 239 485

I Inter State Transmission Cost (Rs. Crs.) 327.32 418.72 487.19

J = (A - H) Units Purchased at State Periphery (MU) 14,964 17,321 20,041

K = (I - E) Total Power Purchase Cost at State Boundary (Rs. Crs.) 4,263.51 4,586.98 5,587.43

K/J Rate of Power Purchase at State Boundary (Rs. / kWh) 2.85 2.65 2.79

L Intra State Transmission Cost - MPTransco including SLDC

(Rs. Crs.)

571.93 629.68 682.78

M =

(K+L)

Total Power Purchase Cost at Discom Interface (Rs. Crs.) 4,835.44 5,216.66 6,270.21

N Transmission Loss (MU) 473 520 601

O = (K -

N)

Units Purchased at Discom Boundary (MU) 14,491 16,802 19,440

M/O Rate of Power Purchase at Discom Boundary (Rs. / kWh) 3.34 3.10 3.23

Particulars Central

Discom

FY 14 FY 15 FY 16




D MPPMCL costs 267.09 113.18 120.97

E =

B+C+D








69



(Rs. Crs.)

602.19 663.00 718.87

M =

(K+L)



O = (K -

N)



Particulars West Discom

FY 14 FY 15 FY 16




D MPPMCL costs 329.42 128.32 127.11

E =

B+C+D









(Rs. Crs.)

739.33 813.99 882.65

M =

(K+L)



O = (K -

N)




70

Particulars MP State

FY 14 FY 15 FY 16




D MPPMCL Costs 854.10 350.97 363.10

E =

B+C+D



H External Losses (MU) 947 767 1,527

I Inter State Transmission Cost (Rs. Crs.) 1,165.01 1,355.53 1,577.19

J = (A -

H)

Units Purchased at State Periphery (MU) 49,617 55,534 63,266

K = (I -

E)

Total Power Purchase Cost at State Boundary (Rs.

Crs.)

14,781.15 15,681.61 19,401.81

K/J Rate of Power Purchase at State Boundary (Rs. /

kWh)

2.98 2.82 3.07

L Intra State Transmission Cost - MPTransco including

SLDC (Rs. Crs.)

1,913.45 2,106.67 2,284.30

M =

(K+L)

Total Power Purchase Cost at Discom Interface (Rs.

Crs.)

16,694.60 17,788.28 21,686.11

N Transmission Loss (MU) 1,568 1,666 1,898

O = (K -

N)


M/O Rate of Power Purchase at Discom Boundary (Rs. /

kWh)

3.47 3.30 3.53


71

5. O&M Expenses - Discoms

The O&M expenses based on the provisions of the regulation are as below:-

5.1. Employee Costs

As per the provision of regulation, employee costs have been calculated as below:-

Table 39: Employee Cost

Particular East Discom Central Discom West Discom

FY '14 FY '15 FY '16 FY '14 FY '15 FY '16 FY '14 FY '15 FY '16

Employees Expenses

excluding arrears, DA, Terminal

Benefits

and incentives 751

354 365

644

313 322

622

334 344

Arrears 34 14 30 12 30 10

DA including Incentive 379 442 335 390 357 416

Leave Encashment 5 5 10 10 4 4

PF/CFA/ GTIS/Annuity/NPS 7 7 6 6 6 6

Total 751 779 834 644 693 740 622 731 780

Major assumptions considered for calculation of Employee Costs for three Discoms are:

a. For the calculation of the DA, basic pay has been taken at the same level as notified in the MPERC

regulations. For computation of Dearness allowance, a 7% increase has been considered for every six months

for all three Discoms (every year in January and July). Based on this, the DA as a percentage of Basic Salary

(approved by MPERC) is shown in the table below:

FY '15 FY '16

DA as percentage of Basic for first quarter - Apr to June 100% 114%

DA as percentage of Basic for 2nd and 3rd quarter - July to Dec 107% 121%

DA as percentage of Basic for 4th quarter - Jan to March 114% 128%

b. Incentive/ Bonus to be paid to the employees have been considered as per the previous trend in the Audited

Accounts.

c. Cost on account of Sixth pay arrears has been considered as notified in the MPERC regulations.

d. Leave Encashment and PF/CFA/GTIS/NPS:

It is pertinent to mention that MPPTCL is only providing fund to Discoms to meet out Terminal Benefits

liability of Gratuity, Pension and Commutation of pension.

Other than these components, Discoms make payment of Leave Encashment and PF/CFA/GTIS/NPS.

Hence, expenses incurred on account of Leave Encashment and PF/CFA/GTIS/NPS have been claimed

separately in addition to the terminal benefits costs claimed as part of Intra-State Transmission Charges in

the total Power Purchase Costs of Discoms.


72

5.2. Administrative & General Expenses

As per the provision of regulation, A&G expenses have been calculated as below:-

Table 40: Administrative and General Expenses-As per Regulation (Rs. Cr.)

Particulars East Discom Central Discom West Discom

FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

A&G Expenses excluding MPERC fees and Taxes 122 122 131 65 92 99 93 100 108

Taxes payable to Government 4 3 4 1 1 2 16 14 16

Total 125 125 135 66 93 101 108 114 124

Major assumption considered for calculation of above A&G Expenses:

a. As per the provision of the para 34.1 of the regulation, norms of A&G expenses notified in the regulation

excludes Fees paid to the MPERC and Taxes payable to the government.

b. In view of above Fees paid to the MPERC and Taxes payable to the government considered over & above

the cost notified in the regulation.

MPERC Fees has been projected as per the provisions of the regulation:

Table 41: MPERC fees



MPERC Fees 0.00 0.50 0.58 0.00 0.52 0.61 0.54 0.59 0.64

5.3. Repair and Maintenance Expenses

As per the provision of regulation, R&M expenses have been calculated as below:-

Table 42: Repair and Maintenance Expenses-As per Regulation (Rs. Cr.)



Opening GFA of FY year 5,341 5,972 5,405 6,589 4,315 5,432

R&M Expenses as 2.3% of GFA 87 123 137 49 124 152 89 99 125


73

5.4. Gist of O&M Expenses

The Gist of O&M expenses as per the provisions of the regulation is summarized as below:-

Table 43: Gist of O&M expenses-As per Regulation (Rs. Crores)


FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

Employee Cost

(including arrears, DA and others) 751 779 834 644 693 740 622 731 780

A&G Expenses 125 125 135 66 93 101 108 114 124

R&M expenses 87 123 137 49 124 152 89 99 125

MPERC Fees 0 1 1 0 1 1 1 1 1

Total O&M expenses 963 1,028 1,107 760 911 993 820 944 1,030


74

6. Investment Plan – Discoms

6.1.1. Capital Investment Plan

The three Discoms are undertaking various projects in coming years for system strengthening and reduction of distribution

losses. The focus is on creation of new 33/11 kV S/s, bifurcation of overloaded 33 kV feeders, feeder bifurcation as 11 kV

level of agricultural feeder, Addl. / Aug of PTRs, Installation of DTRs, conversion of bare LT line into AB Cables and

replacement of service lines etc.

The overall distribution loss of the system is the sum of technical and commercial losses. The technical losses are mainly

due to poor infrastructure which needs strengthening, renovation and up-gradation of the capacity of lines, sub-stations and

associated infrastructures. The commercial losses are mainly due to pilferage of energy which can also be reduced to large

extent by re-engineering of the system which requires capital investment and directed efforts. Discoms are working on

both the issues and the distribution losses have also come down but not up to the normative loss level.

Scheme wise Capital Expenditure Plan of Discoms for FY’14 to FY’16 is given in table below:

Table 44: Capital expenditure Plan (Rs. Crores)

Name of Scheme East Discom

FY '14 FY '15 FY '16

New Ag Pumps-Kisan Anudan Yojna

1,054.19

56.50 59.33

System Strengthening ( STN / TSP / SCSP) 405.00 480.36

ADB 103.18 10.00

Feeder Bifurcation -ADB 82.86 125.00

Feeder Bifurcation -REC 70.00 100.00

New EAP Scheme 35.00 80.00

RGGVY 120.00 120.00

R-APDRP(A+B) 135.18 181.59

Miscellaneous (DTR) 15.23 0.00

Total 1,054.19 1,022.95 1,156.28

Name of Scheme Central Discom

FY '14 FY '15 FY '16

System Strengthening

957.12

255.00 270.00

Feeder Separation 105.00 150.00

New Pump Connection 101.13 91.52

ADB II 117.60 65.00

RGGVY 49.10 84.85

RAPDRP Part A 34.04 35.00

RAPDRP Part B 78.00 181.84

HUDCO 5.00 14.50

Total 957.12 744.87 892.71

Name of Scheme West Discom

FY '14 FY '15 FY '16

ADB

894.96

67.21 930.20

TSP and SCSP 65.00 232.19

GOMP (Equity) 240.40 231.16

FSP - ADB Loan 0.00 221.51

PFC Loan (ADB Counter Funds) 0.00 0.00

REC Loan (FS) Phase - I 0.00 0.00

ADB Loan (FS) Phase - II 80.56 0.00

RAPDRP (GOI) 239.01 86.07

JBIC 0.00 0.00

Others (New EAP) 0.00 0.00

RGGVY 92.29 208.23

Central Govt. Assistance (FS) 0.00 0.00

REC(Departmental Works) 0.00 0.00


75

Total 894.96 855.63 1,941.36

6.1.2. Scheme Wise Capitalization

Following is the proposed scheme wise Capitalization Plan of Discoms:

Table 45: Scheme Wise Capitalization (Rs. Crores)

Name of Scheme East Discom

FY '14 FY '15 FY '16

New Ag Pumps-Kisan Anudan Yojna

1,072.52

22.60 42.94

System Strengthening ( STN / TSP / SCSP) 162.00 329.84

ADB 41.27 39.08

Feeder Bifurcation -ADB 33.14 78.17

Feeder Bifurcation -REC 28.00 63.80

New EAP Scheme 14.00 43.90

RGGVY 48.00 88.80

R-APDRP(A+B) 54.07 118.60

Miscellaneous 6.09 5.18

Out of Opening CWIP 221.38 162.75

Total 1,072.52 630.56 973.06

Name of Scheme (* All scheme wise capitalization includes opening

CWIP)

Central Discom

FY '14 FY '15 FY '16

R-APDRP A

955.25

44.31 34.52

R-APDRP B 267.46 129.92

ADB 2 184.75 91.30

System Strengthening 232.52 262.50

Feeder Separation 249.13 127.50

New Pump connection 119.24 96.33

RGGVY 86.55 66.98

Total 955.25 1,183.95 809.04

Name of Scheme West Discom

FY '14 FY '15 FY '16

ADB

466.33

53.77 757.60

TSP and SCSP 52.00 198.75

GOMP (Equity) 192.32 233.01

FSP - ADB Loan 0.00 177.21

FSP Equity 0.00 0.00

New Agricultural pumps 42.40 36.20

Grant for Simhastha Mela 14.53 3.63

PFC Loan (ADB Counter Funds) 0.00 0.00

REC Loan (FS) Phase - I 0.00 0.00

ADB Loan (FS) Phase - II 64.45 16.11

RAPDRP (GOI) 191.21 116.66

JBIC 0.00 0.00

Others (New EAP) 0.00 0.00

RGGVY 73.83 185.04

Central Govt. Assistance (FS) 0.00 0.00

REC(Departmental Works) 0.00 0.00

Deposit Scheme 0.00 0.00

Capitalization of opening CWIP 432.94 346.54

Total 466.33 1,117.44 2,070.75


76

6.1.3. CWIP

Following table shows the year wise bifurcation of CWIP of the three Discoms.

Table 46: CWIP (Rs. Cr.)



Opening Balance of CWIP 335 317 568 322 505 204 883 1,312 1,050

Fresh Investment during the year -18 881 1,197 1,139 883 1,023 895 856 1,941

Interest & Expenses capitalised 1,073

221 163 573 814 370 466

433 518

Investment capitalised 409 810 382 370 439 685 1,553

Closing Balance of CWIP 317 568 792 505 204 419 1,312 1,050 921

6.1.4. Fixed Assets Addition

The year wise fixed assets addition is as follows:

Table 47: Fixed Assets Addition (Rs. Cr.)



Land & land rights 0 0 0 0 0 0 0 0 0

Buildings 7 2 4 14 15 10 2 4 7

Hydraulic works 0 0 0 0 0 0 0 0 0

Other civil works 0 0 0 5 5 4 0 0 0

Plant & machinery 238 184 284 303 315 216 125 301 557

Lines, cables, networks 649 322 497 570 594 406 283 677 1,255

Vehicles 0 0 0 0 0 0 0 0 0

Furniture & fixtures 0 0 0 0 0 0 1 1 3

Office equipments 3 8 12 27 28 19 0 1 2

Any other items/Capital Assets

not belonging to the

board/RGGVY

175 114 176 216 225 154 55 132 244

Intangible Assets 0 0 0 0 0 0 0 1 2

Total 1,073 631 973 1,136 1,184 809 466 1,117 2,071


77

7. Other Costs/ Income – Discoms

7.1. Depreciation

According to the applicable norms, Discoms have developed detailed depreciation model based on rates specified by the

Hon’ble commission in annexure-II of said regulation. The depreciation during the year so worked out for FY’14 till

FY’16 is shown below:

Table 48: Depreciation -> as per regulation (Rs. Cr.)

Particulars



Land under Lease 0 0 0 0 0 0 0 0 0

Building 1 2 2 3 2 3 3 3 3

Hydraulic Works 0 0 0 1 1 1 0 0 0

Other Civil Works 0 0 0 0 0 0 0 0 0

Plant & Machinery 53 63 73 82 100 112 79 80 102

Line Cable Networks etc. 96 121 146 100 139 163 61 98 145

Vehicles 0 0 0 0 0 0 0 0 0

Furniture & fixtures 0 0 0 0 0 0 0 0 0

Office Equipments 7 4 4 12 7 8 2 1 1

Any other items/Capital Assets

not belonging to the

board/RGGVY

0 0 0 27 17 27 18 22 32

Intangible Assets 0 0 0 0 0 0 0 0 0

Total 157 190 225 224 266 315 164 205 283

7.2. Interest and Finance Charges

7.2.1. Interest on Project Loans

Regulation 31 provides the method of calculation of interest and finance charges on loan capital.

The methodology adopted for calculating Interest and Finance charges on project loan in tariff order FY’15 has been

adopted for projecting the interest and finance charges on project loan. The details are elaborated in following table:

Table 49: Interest on Project Loans (Rs. Cr.)


FY 14 FY 15 FY 16

1. Opening balance of GFA identified as funded through debt 1,129.50 1,688.70 1,935.07

2. Addition to GFA during the year 1,072.52 630.56 973.06

3. Consumer contribution during the year/ Asset Constructed Under

RGGVY During the year

49.07 48.03 50.43

4. Net addition to GFA during the year (4=2-3) 1,023.45 582.53 922.63

5. 30% of addition to net GFA considered as funded through equity

(5=4*30%)

307.04 174.76 276.79

6. Balance addition to net GFA during the year funded through

debt(6=4-5)

716.42 407.77 645.84

7. Debt Repayment due during the year (equal to the depreciation

claim)

157.22 190.27 224.77


78

8. Closing balance of GFA identified as funded through debt 1,688.70 1,935.07 2,385.28

9. Average of loan balances 1,409.10 1,811.89 2,160.18

10. Weighted average rate of interest % on all loans 8.02% 7.25% 8.74%

11. Total Interest on project loans(11=9*10) 113.04 131.36 188.73

12. Finance Charges 2.97 2.97 3.19

13. Total Interest on project loan and Finance charges 116.00 134.32 191.93

Particulars Central Discom

FY 14 FY 15 FY 16

1. Addition to GFA during the year 1,136.33 1,183.95 809.04



0 0 0

3. Net addition to GFA during the year (3=1-2) 1,136.33 1,183.95 809.04


(4=3*30%)

340.90 355.19 242.71

5. Balance addition to net GFA during the year funded through debt

(5=3-4)

795.43 828.77 566.33

6. Debt Repayment due during the year (equal to the depreciation claim) 224.33 266.08 315.42

7. Average of loan balances 1,841.74 2,197.03 2,447.93


9. Total Interest on project loans (9=7*8) 186.63 205.04 245.40

10. Finance Charges 16.78 18.49 24.33



FY 14 FY 15 FY 16

1. Opening balance of GFA identified as funded through debt 728.88 866.10 1,443.43

2. Addition to GFA during the year 466.33 1,117.44 2,070.75



36.54 0.00 0.00

4. Net addition to GFA during the year (4=2-3) 429.80 1,117.44 2,070.75


(5=4*30%)

128.94 335.23 621.23

6. Balance addition to net GFA during the year funded through

debt(6=4-5)

300.86 782.21 1,449.53

7. Debt Repayment due during the year (equal to the depreciation

claim)

163.65 204.88 282.76

8. Closing balance of GFA identified as funded through debt 866.10 1,443.43 2,610.20

9. Average of loan balances 797.49 1,154.76 2,026.81


11. Total Interest on project loans(11=9*10) 79.75 93.50 184.82

12. Finance Charges 6.07 6.67 7.34



79

7.2.2. Interest on Working Capital

The interest on working capital has been calculated on the basis of provisions of the Regulation and shown in the table

given below.

Hon’ble Commission while calculating working capital requirement deducts the amount of closing balance of consumer

security deposit from the gross requirement of working capital resulting which the net working capital requirement for the

Discoms is coming as negative. The Commission while considering the negative working capital requirement has not

allowed any amount towards interest on working capital. Further it is prayed to the commission that consumer security

deposit received during the year can only be used as one of the component to calculate working capital, therefore it is

prayed to the commission to consider the consumer security deposit received during the year only for the purpose of

computing working capital requirement. Thus the licensees pray to allow expenses on account of Working Capital interest

after deducting the consumer security deposit received only during the year.

Table 50: Interest on Working Capital (Rs. Cr.)


FY 14 FY 15 FY 16

A) 1/6th of annual requirement of inventory for previous year 6.76 8.46 9.46

B) O&M expenses

R&M expenses 90.11 122.85 137.36

A&G expense 125.24 125.60 135.61

Employee expenses 771.61 778.37 833.30

B i) Total of O&M expenses 986.95 1,026.83 1,106.26

B ii) 1/12th of total 82.25 85.57 92.19

C) Receivables 0.00 0.00 0.00

C i) Annual Revenue from wheeling charges 0.00 0.00 0.00

C ii) Receivables equivalent to 2 months average billing of wheeling

charges

0.00 0.00 0.00

D) Total Working capital (A+B ii) - C i) - D) 89.01 94.03 101.64

E) Rate of Interest 13.5% 13.5% 13.5%

F) Interest on Working capital 12.02 12.69 13.72

For Retail Sale activity

Particulars FY 14 FY 15 FY 16


B) Receivables

B i) Annual Revenue from Tariff and charges 5,467.52 6,508.40 7,448.41

B ii) Receivables equivalent to 2 months average billing 911.25 1,084.73 1,241.40

C) Power Purchase expenses 5,816.68 5,195.11 6,251.65

C i) 1/12th of power purchase expenses 484.72 434.72 522.52

D) Consumer Security Deposit 664.11 674.35 725.61

E) Total Working capital (A+B ii) - C i) - D) -237.22 -23.89 -6.23

F) Rate of Interest 13.50% 13.50% 13.50%

G) Interest on Working capital -32.02 -3.23 -0.84

Total Interest on working capital from wheeling activities 12.02 12.69 13.72

Total Interest on working capital from retail activities -32.02 -3.23 -0.84

Net Interest from working capital -20.01 9.47 12.88

Particulars Central Discom

FY 14 FY 15 FY 16


B) O&M expenses

R&M expenses 49.00 124.31 151.54

A&G expense 66.47 93.77 101.44


80


B i) Total of O&M expenses 759.89 910.82 993.39

B ii) 1/12th of total 63.32 63.32 63.32

C) Receivables



charges

0.00 0.00 0.00





Particulars FY'1

4

FY 15 FY 16


B) Receivables


B ii) Receivables equivalent to 2 months average billing 898.55 1,081.46 1,316.79



D) Consumer Security Deposit 546.75 633.48 720.22

E) Total Working capital (A+B ii) - C i) - D) -84.05 65.57 103.76


G) Interest on Working capital -11.35 8.85 14.01


Total Interest on working capital from retail activities -11.35 8.85 14.01

Net Interest from working capital -2.14 20.01 26.34


FY 14 FY 15 FY 16


B) O&M expenses

R&M expenses 109.14 99.24 124.94

A&G expense 105.57 114.45 124.88


B i) Total of O&M expenses 836.35 944.33 1,030.03

B ii) 1/12th of total 69.70 78.69 85.84

C) Receivables 0.00 0.00 0.00



charges

1.51 0.60 0.43





Particulars FY

14

FY 15 FY 16


B) Receivables


B ii) Receivables equivalent to 2 months average billing 1,174.43 1,297.51 1,407.29



D) Consumer Security Deposit 823.38 936.50 1,049.62


81

E) Total Working capital (A+B ii) - C i) - D) -277.31 -101.28 -207.62


G) Interest on Working capital -37.44 -13.67 -28.03


Total Interest on working capital from retail activities -37.44 -13.67 -28.03

Net Interest from working capital -27.13 -2.19 -15.41

7.2.3. Interest on Consumer Security Deposit

Interest on consumer security deposit has been paid to the consumers according to the Hon’ble Commission’s regulation

for security deposit. The table below shows the projections of Interest on Consumer Security Deposit:

Table 51: Interest on consumer security deposit as per regulation (Rs. Crores)


FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

FY

'14

FY

'15

FY

'16

Interest on Consumer Security Deposit 60 61 65 45 57 65 54 84 94

As per regulations, interest on consumer security deposit has been calculated as per the bank rate of RBI as on 1st April of

relevant year which is at present 9% p.a.


82

7.3. Other Income

The main components of Non-Tariff Income are meter rent, wheeling charges, supervision charges, sale of scrape and

miscellaneous charges from consumers. Meter rent and miscellaneous charges have been projected as a percentage of tariff

income.

Table 52: Other Income (Rs. Cr.)


FY

14

FY

15

FY

16

FY

14

FY

15

FY

16

FY

14

FY

15

FY

16

Income from Investment, Fixed & Call Deposits 14 7 9 37 37 37 23 17 13

Interest on loans and Advances to staff 0 0 0 0 0 0 0 0 0

Interest on Advances to Suppliers / Contractors 1 0 0 12 10 11 13 10 7

Income/Fee/Collection against staff welfare

activities

0 0 0 0 0 0 0 0 0

Miscellaneous receipts 80 66 71 251 120 147 167 50 54

Misc. charges from consumers (meter rent, etc) 39 39 39 0 0 0 83 47 50

Deferred Income (Consumer Contribution) 12 13 14 192 276 258 0 0 0

Wheeling charges 0 0 0 0 1 1 9 4 3

Income from Trading other than Power (i.e sale

of scrap, tender form)

18 18 18 0 0 0 34 35 37

Supervision charges 0 0 0 0 0 0 16 16 17

Total 164 145 152 492 445 454 344 178 180

7.4. Return on Equity

Based on the provision of regulation, the calculation of return on equity is as follows:

Table 53: Return on equity as per regulation (Rs. Crores)

Sr. no. Particulars East Discom

FY 14 FY 15 FY 16

A Gross Fixed Assets at the beginning of year (net of consumer

contributions)

2,113.65 2,113.65 2,113.65

A1 Opening balance of GFA identified as funded through equity 984.15 984.15 984.15

A2 Opening balance of GFA identified as funded through debt 1,129.50 1,129.50 1,129.50

B Proposed capitalization of assets as per the investment plan (net of

consumer contribution)

1,072.52 409.18 810.31

B1 Proportion of capitalized assets funded out of equity, internal reserves 307.04 307.04 307.04

B2 Balance Proportion of capitalized assets funded out of project loans (B -

B1)

765.49 102.14 503.28

C1 Normative additional equity (30% of B) 321.76 122.75 243.09

C2 Normative additional debt (70% of B) 750.77 286.43 567.22

D1 Excess / shortfall of additional equity over normative (B1-C1) -14.72 184.28 63.94

D2 Excess / shortfall of additional debt over normative (B2-C2) 14.72 -184.28 -63.94

E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever

is lower

1,137.66 1,384.75 1,622.95

Return on Equity (16% on E) 182.03 221.56 259.67

Sr. no. Particulars Central Discom

FY 14 FY 15 FY 16


83


contributions)

4,268.40 5,404.73 6,588.68

A1 Opening balance of GFA identified as funded through equity 1,280.52 1,621.42 1,976.61

A2 Opening balance of GFA identified as funded through debt 2,987.88 3,783.31 4,612.08



955.25 1,183.95 809.04



B1)

726.57 904.57 543.69



D1 Excess / shortfall of additional equity over normative (B1-C1) -57.90 -75.80 22.64

D2 Excess / shortfall of additional debt over normative (B2-C2) 57.90 75.80 -22.64

E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever

is lower

1,394.86 1,761.11 2,097.96


Sr. no. Particulars West Discom

FY 14 FY 15 FY 16


contributions)

1,640.70 1,906.85 2,819.42

A1 Opening balance of GFA identified as funded through equity 911.82 1,040.76 1,375.99

A2 Opening balance of GFA identified as funded through debt 728.88 866.10 1,443.43



429.80 1,117.44 2,070.75



B1)

300.86 782.21 1,449.53



D1 Excess / shortfall of additional equity over normative (B1-C1) 128.94 335.23 621.23

D2 Excess / shortfall of additional debt over normative (B2-C2) 300.86 782.21 1,449.53

E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever is

lower

976.29 1,208.37 1,686.60



84

7.5. Bad and Doubtful Debts

Bad and doubtful debts have been projected on the basis of 1% of the revenue of the control period. Following table shows

the year wise amount.

It is submitted that the Commission as per its Tariff Regulations has allowed bad and doubtful debts to the extent of 1% of revenue from sale of

power. However, the Commission may observe that the discoms have actually been writing off bad debts of amount more than the prescribed

1% of revenue. Considering the facts presented here, the Hon’ble Commission is prayed to allow the complete 1% amount of revenue as bad

debts as per the provisions of its Tariff Regulations.Table 54: Bad Debts - As per regulation (Rs. Crores)



Bad and Doubtful Debts 60.58 65.08 74.48 47.31 64.89 79.01 261.00 77.85 84.44


85

8. Income/Expenses of MPPMCL

As per item No.8 (ii) of State Govt. Notification No.2260-F-3-24-2009-XIII dt. 19/03/2013, to meet its own expenses,

M.P. Power Management Company Limited has been supplying power to the Discoms at the tariff determined/approved

by MPERC and its own expenses on actual basis in proportion to the energy drawl by respective Discoms.

MPPMCL has been operating on “No Profit and No Loss” basis. Therefore, till now at the end of each financial year, all

the credits received by MPPMCL which formed the part of income of MPPMCL (shown as “other income” in Form S-1)

were being passed on to the Discoms in proportion to the energy drawl by respective Discoms as a part of their Power

Purchase Costs. The major components of Annual Revenue Requirement of MPPMCL are detailed in this section.

8.1. Income

8.1.1. Revenue from operations (including Revenue Subsidy)

The revenue from sale of electricity is taken by Discoms in their ARR therefore it is not taken in the ARR of M.P.

Power Management Company Ltd. Other income of MPPMCL is also passed on to DISCOMS at the end of the

financial year.

8.2. Expenses

In the Discom-wise ARR, the Discoms have considered power purchase cost station-wise and their own O&M

Expenses, Depreciation, Interest Charges etc. as per the provisions of MPERC regulations.

However, there are certain costs pertaining to power purchase (as detailed below) which could not be considered

by the Discoms being not in their control/action. Such costs are therefore included in the power purchase costs of

Discoms as MPPMCL specific costs and are taken into consideration in the ARR of MPPMCL, the details of

which are given hereunder:-

8.2.1. Energy purchase

For FY 2013-14 it includes:

a. Bills of Omkareshwar of Rs 69.92 crs, Indira Sagar Project of Rs. 171.57 crs. And bills of PTC (Medium

Term) of Rs. 192.94 crs.

b. Liability for banking of energy of Rs 194.32 crs.

c. Share of other utilities/traders in the bill of PGCIL of Rs. (54.40) crs.

d. Purchase from others of Rs. 24.04crs.

(a) Bills of Omkareshwar, Indira Sagar Project and PTC (medium Term)

FY 2013-14 includes revision bill of OSP & ISP amounting to Rs. 69.92 crores and Rs.171.57 crores respectively

and bill of PTC (medium Term) of Rs. 192.94 crores, which is not passed to Discoms through monthly bills.

From FY 2014-15 onwards all the bills are likely to be passed through the monthly bills to the Discoms, hence

will be considered in ARR of Discoms.

(b) Liability for banking

Beginning from the year 2007-08, MPPMCL has started the practice of exchange/banking of energy with third

parties outside the State of Madhya Pradesh whereby during availability of surplus power in the state, energy is

supplied to the parties facing shortage of power and in case of power deficit in the sate the banked energy is taken

by the Company. The Banking and Exchange transactions do not involve any payment or receipts in terms of

money for the power transacted except the charges related to open access and trading margin payable to the party

through which such transaction is facilitated.

Liability for Banking of energy of Rs. 194.32 crores: -

The Company has a liability to return 885.13 MU of banked energy, received during 2013-14, which translates

into a financial liability of about Rs.296.94Cr considering cost per unit of Rs.3.35 i.e. the average power purchase

rate for 2013-14 calculated on the basis of monthly bills passed on to the discoms. During FY 2013-14, the


86

Company had returned 327.92 MU of banked power received in 2012-13. This was translated in to a financial

liability of Rs.102.62 Cr @ Rs 3.13 per unit which was the average cost of power purchase for the year 2012-13.

Therefore, a net banking liability of Rs. 194.32 crs is booked in FY 2013-14.

For FY 14-15, the liability for banking of energy is calculated as follows:

Must to be returned at the end of FY 2013-14 885.13

Must to be returned at the end of FY 2014-15 973.64

Average purchase cost for F.Y. 13-14 3.35

Average purchase cost for F.Y. 14-15 (increasing the rate of FY 2013-14 by 10%) 3.69

Total amount of Banking Liability for FY 14-15 358.79

Credit for 885.13 Mus billed to Discoms in 2013-14 @ 3.35 Rs/unit 296.52

Net liability to be passed to Discoms 62.27

From FY 15-16 and onwards, the liability of banking is worked out by increasing the banking liability of FY 14-

15 by 10% p.a.

(c) Bills of PGCIL Transmission charges

In FY 2013-14, PCGIL billed total amount of Rs.54.40crores on MPPMCL on behalf of other utilities/traders. For

recovery of this amount, MPPMCL raised reimbursement bills on these utilities, credit of which is not passed to

Discoms through monthly bills. From FY 2014-15 onwards all such credits are likely to be passed through the

monthly bills to the Discoms, hence will be considered in ARR of Discoms

8.2.2. Power procurement cost :-

Apart from the direct bill of power purchase as per REA/SEA and other heads under energy purchase, some other

expenses like open access charges and trading margin etc. on banking and short term power purchase & sale have

been included under this head.

The demand supply gap on part of the day basis is managed through short term power procurement and in case of

surplus energy, the same is disposed off. Therefore, short term sale of power and short term purchase of power are

important activities undertaken to meet the power demand of the State. Similarly, MPPMCL makes arrangements

for energy banking with various utilities throughout the year to meet the uneven demand of power in the State

during monsoon season and rabi period. Energy banking is a barter system, wherein units of energy are

exchanged without any financial transaction between the partners in banking arrangement, although some

operational expenses like trading margin, open access charges, RLDC/SLDC permission charges etc. are incurred.

The charges towards "banking of energy" reflect the notional cost of the net liability of energy to be returned in

the subsequent year and it is based on average power purchase cost of the financial year concerned.

The cost of "trading margin" is the amount paid to various traders on sourcing of energy by way of banking and

short term purchase within the limit prescribed by MPERC.

For all such short time arrangements for arranging power and disposing off power, the cost of "open access

charges" has also to be paid up to the delivery point.

All the above mentioned costs are included in the item 5 under the head "purchase of power from other sources

and Inter State Transmission charges" in Form S-1 submitted herewith in respect of MPPMCL which contains

relevant explanatory notes in respect of all the items shown therein.

8.2.3. Inter State Transmission charges :-

It includes Open Access charges for short term and medium term purchase of Rs.0.25 crs. Open Access charges

for banking of Power of Rs.111.25 crs. and trading Margin Bills of Rs. 3.37 crs. The transmission charges for FY

14-15 and onwards is taken by increasing the expenses of FY 13-14 by 7.93% p.a.


87

8.2.4. Depreciation :-

For FY 2013-14 the actual expenses as per the financial statements are taken. From FY 2014-15 and onwards it is

taken by increasing the expenses of FY 13-14 by 10% p.a.

8.2.5. Interest and Finance charges for power procurement :-

As per the existing power purchase agreements, facility of Letter of Credit is to be provided to power suppliers.

The cost towards extending this facility of LC and other bank charges are covered under item "Interest & finance

charges" in Form S-1.

Further, interest & Finance charges also include the financing cost towards availing installment facility in case of

power purchase bills of high amounts to manage the payment commitments within fund availability.

The Interest & Finance charges for FY 2013-14 are Rs.68.29crs. It includes interest paid to power suppliers on

account of installment facility, interest due to tariff revision, Bank charges, commitment charges, Stamp duty,

processing charges etc.

Interest paid to NHDC in FY 2013-14 is Rs.59.44 crores, which is excepted to decrease to Rs 54.83 crores in FY

2014-15. In FY 2014-15 an additional financial arrangement with NHDC for payment of Rs.241crores in

installments at interest rate of 10.25% is expected. This results in additional interest of Rs24.70 crores. The total

interest payable to NHDC in FY 2014-15 is estimated to Rs.79.53 crores. For FY 2015-16 onwards, it is estimated

to decrease by 10%.

The other charges of Rs.8.85 crores (i.e. Rs.69.28 crores - Rs.59.44 crores) for FY 2014-15 and onwards is taken

by increasing the expenses of FY 2013-14 by 7.93% p.a.

8.2.6. Repairs and Maintenance :-

For FY 2013-14 Repairs and Maintenance expenses consist of expense of Rs.1.66 crores. The Repairs and

Maintenance expenses for FY 2014-15 and onwards is taken by increasing the expenses of FY 2013-14 by 7.93%

p.a.

8.2.7. Energy sale management expenses :-

In case of short term sale of energy by MPPMCL to third parties, MPPMCL incurs:

a. Open Access Charges to the point of delivery as per agreement.

b. Prompt payment rebate to the purchasers as per PPA.

Similarly, in case of sale of power through the power exchanges, MPPMCL bears the:

a. Transmission open access charges

b. Fee of Rs.0.02 per unit payable to the concerned exchange for facilitating trading through the exchange.

8.2.8. Salary, A&G and asset management Expenses :-

Employee cost includes salary of Rs.54.57 crores of MPPMCL. The employee costs are anticipated to increase @

3 % p.a. from FY 2014-15 onwards.

8.2.9. Administration and General Expenses :-

It consists of Rs.13.04 crores of expenses of MPPMCL. The administration expenses for FY 2014-15 and

onwards is taken by increasing the expenses of FY 2013-14 by 7.93% p.a.

8.2.10. Other Expenses :-

It consists of bank charges of Rs.1.51 crores. The other expenses for FY 2014-15 and onwards is taken by

increasing the expenses of FY 2013-14 by 7.93% p.a.


88

The rate (7.93% p.a.) by which expenses have been increased each year for projection is equal to the inflation rate

given in clause 34.6 of the MPERC regulation " Regulation for the control period from FY 2013-14 to FY 2015-

16 on terms and condition for determination of tariff for supply and wheeling of electricity and methods of

principles for fixation of charges."


89

9. Annual Revenue Requirement

9.1. Annual Revenue Requirement of MPPMCL

The table below details the Annual Revenue Requirement of MPPMCL. The Net Expenses are included as a part of Power

Purchase Costs of Discoms.

Table 55: Summary of ARR for MPPMCL (Rs. Cr.)

Particulars Previous Year Current

Year

Next

Year

FY 14 FY 15 FY 16

Expenses:

Purchase of Power from MP Genco 0.00 0.00 0.00

Purchase of Power from Other Sources 598.38 62.27 68.50

Inter-State Transmission charges 114.87 123.98 133.81

Intra-State Transmission (MP Transco) Charges 0.00 0.00 0.00

SLDC Charges 0.03 0.04 0.04

Depreciation and amortization expenses 1.73 1.90 2.09

Interest & Finance Charges 68.30 89.08 81.89

Repairs and Maintenance 1.66 1.79 1.93

Employee costs 54.57 56.20 57.89

Administration and General expenses 13.04 14.07 15.19

Net prior period credit charges 0.00 0.00 0.00

Other Expenses 1.51 1.63 1.76

Lease Rental 0.00 0.00 0.00

Total Expenses 854.10 350.98 363.11

9.2. Annual Revenue Requirement of Discoms

Summary of the Aggregate Revenue Requirement of the Discoms calculated on the basis of provisions of the regulation

(including the impact of true up costs of Discoms for FY 2009-10, FY 2010-11 and FY 2011-12; Transco true up of FY

2012-13 and MPGenco true-up for FY 2011-12) is detailed in the table on next page.


90

Table 56: Summary of ARR of Discoms as per the Regulation (Rs. Crores)

Particulars East Discom Central Discom West Discom MP State

FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16

Revenue

Revenue from sale of power (incl. of tariff subsidy) 5,588 6,508 7,448 5,391 6,489 7,901 6,957 7,607 8,263 17,936 20,604 23,612

Other income (excluding DPS) 164 145 152 304 172 200 344 178 180 812 495 532

Total Revenue or Income 5,752 6,653 7,600 5,695 6,661 8,101 7,301 7,785 8,443 18,748 21,099 24,144

Expenditure

Purchase of Power cost

(Ex-Bus, including MPPMCL costs

allocated to Discoms) 5,136 4,168 5,100

5,233 4,593 5,919

7,556

5,565 6,805 17,925

14,326 17,824

Inter-State Transmission charges 419 487 404 471 532 619 1,355 1,577

Intra-State Transmission charges

(MPPTCL and SLDC - incl. Terminal Benefits) 681 630 683 660 663 719 814 883 1,340 2,107 2,285

Repairs and Maintenance 87 123 137 49 124 152 89 99 125 225 346 414

Employee costs 751 779 834 644 693 740 622 731 780 2,017 2,203 2,354

Administration and General expenses

(incl. MPERC fees) 131 126 136 66 94 101 109 114 125 306 334 362

Other Expenses -166 0 0 502 0 0 25 0 0 316 0 0

Bad and Doubtful Debts 646 66 74 559 65 79 132 78 84 1,337 209 237

Less: Expenses Capitalized 0 0 0 0 0 0 0 0 0 0 0 0

Total Expenses 7,266 6,311 7,451 7,713 6,636 8,181 8,533 7,933 9,421 23,512 20,880 25,053

PBDIT -1,514 342 149 -2,018 25 -80 -1,232 -148 -978 -4,764 219 -909

Depreciation and Related debits 157 190 225 224 266 315 164 205 283 545 661 823

PBIT -1,671 152 -76 -2,242 -241 -395 -1,396 -353 -1,261 -5,309 -442 -1,732

Interest & Finance Charges 312 204 270 249 301 361 140 184 287 701 689 918

Profit/Loss before Tax and ROE -1,983 -52 -346 -2,491 -542 -756 -1,536 -537 -1,548 -6,010 -1,131 -2,650

Tax 0 0 0 0 0 0 0 0 0 0 0 0

RoE 182 222 260 223 282 336 156 193 270 561 697 866

Profit/Loss after Tax and RoE -2,165 -274 -606 -2,714 -824 -1,092 -1,692 -730 -1,818 -6,571 -1,828 -3,516

ARR (Income from Sale of power + Gap) 7,753 6,782 8,054 8,105 7,313 8,993 8,649 8,337 10,081 24,507 22,433 27,128

Average Cost of supply 6.99 5.06 5.07 7.01 5.34 5.44 6.19 5.22 5.66 6.69 5.21 5.40


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Particulars East Discom Central Discom West Discom MP State

FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16

Impact of True-Up Amounts of Past Years

Impact of True Up for Discoms for FY 10 353 81 60 494

Impact of True Up for Discoms for FY 11 164 293 -139 318

Impact of True Up for Discoms for FY 12 545 309 78 932

Impact of True up for MP Transco for FY 13 52 67 55 174

Impact of True up for MP Genco for FY 12 -38 -113 -37 -188

Total ARR (Including True Up) 9,130 9,630 10,098 28,858

Total Revenue Gap (including True-up) 1,682 1,729 1,835 5,246

Average Cost of Supply (including true-up) 5.74 5.82 5.67 5.74


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10. Terminal Benefits (Pension, Gratuity and Leave Encashment) Provision

The Terminal Benefit of the employees have been calculated as per the provisions of “MPERC (Terms and Conditions for allowing pension and terminal benefits liabilities of personnel of Board

and successor entities) regulations, 2012 (G-38 of 2012)” notified in the MP gazette notification dated 20th

April 2012. In view of provisions of the MPERC (Terms and Conditions for allowing

pension and terminal benefits liabilities of personnel of Board and successor entities) regulations, 2012, Discoms claim both provision as per the rate prescribed in actuary report & actual cash out

flow on account of terminal benefits.

According to actuarial valuation the liability as on 31st March 2009 for the three Discoms was determined. In addition to this liability, the Actuary valuation has prescribed the following

percentage for the future contribution rate (as a % age of Basic Pay + Grade pay + DA) required to be made by the three Discoms for meeting the liabilities arising due to future service:

Table 57: Future Contribution rate of liability on account of Actuary

Assumption East Discom Central Discom West Discom

Pension Gratuity Leave

Encashment

Total Pension Gratuity Leave

Encashment

Total Pension Gratuity Leave

Encashment

Total

Contribution rate 21.73% 4.95% 0.77% 27.45% 20.15% 4.56% 0.54% 25.25% 20.28% 4.67% 0.59% 25.54%

Discount rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

According to the above prescribed methodology, liability for FY 2013-14 to FY 2015-16 has been worked out and this liability is pertaining to all the employees of licensee, eligible for such

benefits. Terminal Benefits Provisions calculations are provided in table below:

Table 58: Calculation of Terminal Benefits Provisions (Rs. Crores)

Particulars FY 2015-East Discom FY 2015-Central Discom FY 2015-West Discom FY 2015-Total


encashment


encashment


encashment


encashment

Provision as on 31.03.2014 913 169 60 848 135 55 775 154 50 2,536 458 164

Discount @7% 64 12 4 59 9 4 54 11 3 178 32 11

Current Service cost 0 0 0 0 0 0 0 0 0 0 0 0

Yearly salary 733 733 733 648 648 648 691 691 691 2,072 2,072 2,072

Contribution 159 36 6 131 30 3 140 32 4 430 98 13

Total Provision for FY 2015 223 48 10 190 39 7 194 43 8 608 130 25


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Particular FY 2016-East Discom FY 2016-Central Discom FY 2016-West Discom FY 2016-Total


encashmen

t


encashmen

t


encashmen

t


encashme

nt

Provision as on 31.03.2015 1,136 217 69 1,038 174 62 970 198 57 3,144 589 189

Discount @7% 80 15 5 73 12 4 68 14 4 220 41 13

Current Service cost 0 0 0 0 0 0 0 0 0 0 0 0

Yearly salary 807 807 807 712 712 712 760 760 760 2,279 2,279 2,279

Contribution 175 40 6 143 32 4 154 36 4 473 108 15

Total Provision for FY 2016 255 55 11 216 45 8 222 49 9 693 149 28

The table given below indicates the actual provisions made against this liability in the annual accounts of the company from FY 2009-10 till FY 2012-13 and projected for FY 2013-14 to FY

2015-16:

Table 59: Terminal Benefits Provisions Liability for Discoms (Rs. Cr.)

East Discom Central Discom West Discom All Discoms


Encashm

ent

Total

Liability


Encashm

ent

Total

Liability


Encashm

ent

Total

Liability


Encashm

ent

Total

Liability

Past Service

Liability

as determined by

actuary

(From 1.6.2005 to

31.3.2009)

362 58 21 441 326 53 21 399 349 52 20 421 1,037 163 62 1,261

2009-10 67 15 2 85 103 17 7 127 102 23 3 128 272 55 12 340

2010-11 86 20 12 118 80 13 5 99 74 17 2 93 240 50 20 309

2011-12 97 22 13 132 78 13 5 96 79 18 2 99 254 53 21 328

2012-13 104 24 4 131 90 15 6 111 83 20 10 113 277 58 19 355

2013-14 196 30 7 233 170 26 11 207 90 23 12 126 456 80 30 566

2014-15 223 48 10 281 190 39 7 236 194 43 8 245 608 130 25 762

Total up 2015 1,136 217 69 1,422 1,038 174 62 1,274 970 198 57 1,225 3,144 589 189 3,921

2015-16 255 55 11 321 216 45 8 269 222 49 9 280 693 149 28 870

Total up 2016 1,391 272 81 1,743 1,254 219 70 1,543 1,192 247 66 1,505 3,836 738 217 4,791

The terminal benefits liabilities provision has not been included in the computation of final Annual Revenue Requirement for Discoms. Instead, the terminal benefits (Cash Outflow),

based on actual trends have been included as part of Intra-State Transmission Charges in the total Power Purchase Costs of Discoms.


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The Hon’ble Commission is humbly requested to take into account the Terminal Benefit Liabilities amount as claimed by MPPTCL in its petition no. 06/2013 against the amount as approved by

MPERC. However, the petitioners are limiting themselves to the amounts as shown in Table 35: Actual Cash Outflow towards Terminal Benefits for all State Power Sector Utilities of the current

petition for the purpose of ARR.

Table 60: Terminal Benefits Provisions Liability for Discoms (Rs. Cr.)

Terminal Benefits – as filed by MPPTCL FY’14 FY’15 FY’16

1 Current Liabilities -

personnel of all companies retired up to 31-05-2005

248.16 262.86 277.56


personnel of all companies retired after 31-05-2005

for services rendered up to 31-05-2005

369.25 445.42 512.01


personnel of MPPTCL, MPPMCL retired after 31-05-2005

for services rendered after 31-05-2005

143.45 178.59 211.30

4 Provision for Working employees 70.08 76.68 82.96

5 Contribution to trust fund 909.62 909.62 909.62

Terminal Benefits – Sub Total ( filed by MPPTCL) 1,740.56 1,873.17 1,993.45

Terminal Benefits – as approved by MPERC 677.00 677.00 677.00

Difference 1,063.56 1,196.17 1,316.45


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11. Power Purchase Cost Adjustment (PPCA)

11.1. The Hon’ble Commission in Tariff Order for FY’15 has specified formula for deriving Fuel Cost Adjustment

(“FCA”) for recovery/adjustment of un-controllable costs due to increase or decrease in the cost of fuel in

case of coal, oil, and gas for generating plants only. The petitioners in their last year petition also

submitted that the then existing PPCA calculation mechanism did not cover the recovery of incremental

power purchase, which include shortage in supply in from identified power supply sources in the tariff order

requiring distribution licensee to purchase power at higher price from the power market or other sources to

meet the demand.

11.2. Distribution licensee has to meet the power demand of the consumers, as per the relevant provisions of the

Electricity Act, 2003 under the obligation to supply. Therefore, quantum of power purchase may not be

restricted on the basis of normative loss levels. Under any given operating conditions of the power system,

the quantum of energy and the power demand are more or less uncontrollable variables. For the purpose of

tariff determination, the average power purchase cost per unit based on the prudent cost may be considered.

This means that the cost based on the average power purchase cost per unit on the quantum of power based

on normative loss should be passed on to the consumer and any cost in excess of that shall be borne by the

licensee. In any case, the full fixed cost element of the power purchase cost should also be passed on to the

consumer as a legitimate cost. This methodology shall maintain proper balance between the interests of the

consumers and the licensee, as it is based on overall averaging method, so that impact of all the factors over

an annual cycle are covered and distributed equitably.

11.3. The Commission however on the analysis of the same has come out with the following formula

Where,

IVC = sum of – (a) difference in per unit variable cost actually billed by each long term coal or gas based

power generator and variable cost as allowed in the Tariff Order, multiplied by (b) units availed from each

such generating station in the preceding quarter. Variable costs of Hydel Generating Stations shall not be

considered for the purpose of working out the increase in variable Cost of Power Purchase.

Preceding Quarter = the period of preceding three months excluding the period of two months

immediately preceding to the billing quarter,

Billing Quarter = the period of three months for which FCA is to billed and shall be a period commencing

on first day to last day of quarter for the quarter commencing from 1st April ending 30th June and so on

11.4. However the petitioner feels that the average power purchase cost should be considered instead of the

variable costs only. Hence, the Distribution Licensee, in line with the above provision resubmits the

following formula for computation of Power Purchase Cost Adjustment (PPCA) factor for Hon’ble

Commission’s kind consideration:

Wherein,

“APPC” shall mean Average Power Purchase Cost which is sum of – (a) difference in per unit average

cost actually billed by each power generator/sources and as allowed in the tariff order, multiplied by (b)

units availed from each such generating station in the preceding quarter.

“Preceding Quarter” means period of preceding three months excluding the period of two months

immediately proceeding to the billing quarter.


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“Billing quarter” means the period of three months for which PPCA is to be billed and shall be a period

commencing on first day to last day of quarter for the quarter commencing from 1st April ending 30

th June

and so on.

“Normative Sale” means the sale grossed down from the total actual ex-bus drawl from all sources

(Generators + Other sources) during preceding quarter by the normative PGCIL, transmission and

distribution losses for the months of the preceding quarter as provided in the tariff Order.

11.5. PPCA charge shall be in the form of paise per unit (kWh) rounded off to the nearest integer. For this purpose,

fraction up to 0.5 shall be ignored and fraction higher than 0.5 shall be rounded off to the next higher integer.

This charge shall be added to or deducted from, as the case may be, the energy charges as per the existing

tariff for the energy billed to every consumer and shall be treated as part of energy charge.

11.6. The PPCA charge shall be uniformly applicable to all categories of consumers of the Distribution Companies

in the State. The PPCA charge shall also be uniformly applicable to all categories of open access consumers

for the quantum of such supply as is availed by them from the Distribution Companies.

11.7. The National Tariff Policy prescribes the following formula for determination of cross- subsidy surcharge for

various categories of consumers.

“8.5 Cross-subsidy surcharge and additional surcharge for open access

Surcharge formula:

S = T – [C (1+L/100) D]

Where,

S is the surcharge

T is the Tariff payable by the relevant category of consumers;

C is the Weighted average cost of power purchase of top 5% at the margin excluding liquid fuel based

generation and renewable power.”

D is the Wheeling charge

L is the system Losses for the applicable voltage level, expressed as a percentage

Since on PPCA charge is a part of energy charge and uniformly applicable to all categories of consumers,

therefore average tariff will change to the tune of applicable PPCA charge. Therefore it will be more

appropriate to add per unit PPCA rate in the formula for determination of cross subsidy surcharge for various

categories of consumers under the term “T”.

11.8. The M.P. Power Management Co. Ltd., Jabalpur is a holding company and has been authorized by the

Distribution Companies to procure power on behalf of them for retail supply to consumers. The

responsibility of working out the rate of PPCA every quarter shall rest with the M.P. Power management Co.

Ltd., Jabalpur.

11.9. The M.P. Power management Co. Ltd., Jabalpur shall workout change in average cost of power purchase

during the preceding quarter based on the bills received by them from the Generators. The information shall

be prepared in the manner as decided by Commission in the Tariff Order for every month of the “preceding

quarter” and summated thereafter for the quarter:

11.10. The M.P. Power management Co. Ltd., Jabalpur shall workout “normative sale”. For this purpose normative

PGCIL, transmission and distribution loss (percentage /quantum) for the months of preceding quarter, as

provided in the Tariff Orders, shall be subtracted from the total ex-bus power drawn during the preceding

quarter to arrive at normative sale.


97

11.11. PPCA charge shall be worked out by the M.P. Power management Co. Ltd., Jabalpur based on the formula

provided by the Commission. The Distribution Companies of the State shall be advised by them from time to

time to incorporate the PPCA charge for billing purposes for the billing quarter. This exercise should be

completed at least 15 days before the commencement of the billing quarter. The M.P. Power management

Co. Ltd., Jabalpur shall simultaneously submit all relevant details of calculations along with supporting

details to the Commission within 7 days of the completion of the exercise.

11.12. If the Commission finds after reviewing the details submitted by the M.P. Power management Co. Ltd.

Jabalpur, any over or under recovery of PPCA charge, it may direct the M.P. Power management Co. Ltd.,

Jabalpur and the Distribution Companies of the State to make required changes in PPCA charge billing and

any further adjustments in consumer bills that it may consider appropriate.

11.13. The Distribution Companies of the State shall commence billing of PPCA charge from the first day of the

billing quarter.

11.14. Following illustration is given for the purpose of understanding:

If the “billing quarter” is say “July to Sept”, then the “preceding quarter” shall mean the period “Feb to April” and the

period of May and June months is allowed to collect the data/ details and finalization of PPCA charge.

11.15. The details of the normative losses for PGCIL System and MPPMCL System and normative distribution

losses may be provided by the Commission in the Tariff Orders.


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12. Tariff Proposal for FY 2015-16

It is submitted that there has not been any tariff hike for the past two years in the state of Madhya Pradesh which has

severely affected the financial health of the Discoms. The Discoms have started finding it extremely difficult to sustain the

multiple onslaughts of intrinsic rise in expenditure due to inflationary pressures, and consistent rise in power and energy

demands, rather ambitious normative loss reduction trajectory and benchmarks set by the Regulator and rapidly falling

credit rating of the company in the market, obligations to be met under the policy objectives of the State and Central

governments.

Therefore, it is necessary for the licensee to seek an appropriate hike in the tariff, up to the level as proposed and detailed

in the instant petition. It would just not be possible for the Discom to maintain its operational viability at the least, without

an appropriate hike in the retail tariff sought through this petition.

A summary of the proposed tariff hike and resultant additional revenue is given in the table below:

Table 61: Summary of proposed Tariff for FY 2015-16

Particulars East Discom Central Discom West Discom Total MP State

A Total ARR excluding True-Up Impact 8,053 8,993 10,081 27,126

B True-Up Impact 1,076 637 17 1,731

C=A+B Total ARR including True-Up Impact 9,130 9,630 10,098 28,857

D Revenue at Existing Tariffs 7,448 7,901 8,263 23,612

E=C-D Gap to be recovered 1,681 1,730 1,834 5,245

Average Cost of Supply 5.74 5.82 5.67 5.74

Proposed average tariff 5.70 5.79 5.71 5.73

F Additional Revenue from Proposed Tariffs 1,615 1,675 1,898 5,187

G=F+D Total Revenue at Proposed Tariff 9,063 9,575 10,161 28,799

H=G-C Remaining revenue Gap 66 55 -63 58

The Discoms request the Hon’ble Commission to consider and approve the said tariff proposal for FY 2015-16 to recover

the costs for the ensuing year for the State as a whole. Even after the increased revenue of Discoms as per proposed tariff

hike as well as the various operational efficiency measures being undertaken by Discoms and MPPMCL, any remaining

gap is proposed to be recovered during annual true-up by the Discoms.

The detailed category-wise tariff proposal is being submitted in the tariff schedules as part of Chapter 15 of the current

petition. The impact on category-wise revenue due to the proposed tariff is given below:


99

Table 62: Category-wise proposed revenue for FY 2015-16

East Discom Central Discom West Discom MP State

Sales Category Revenue at

current tariffs

Revenue at

proposed tariffs

Revenue at

current tariffs

Revenue at

proposed tariffs

Revenue at

current tariffs

Revenue at

proposed tariffs

Revenue at

current tariffs

Revenue at

proposed tariffs

LT Categories

LV-1: Domestic 1,963 2,413 2,098 2,570 1,857 2,288 5,918 7,271

LV-2: Non-Domestic 653 731 610 683 580 664 1,842 2,078

LV 3.1: Public Waterworks 203 253 97 122 91 116 390 490

LV 3.2: Street Lights 86 112 54 70 111 154 251 336

LV 4: LT Industry 208 237 172 195 339 380 719 812

LV 5.1: Agriculture 1,964 2,475 2,614 3,225 2,985 3,723 7,563 9,424

LV 5.3: For Other than agricultural use 3 3 7 8 1 1 12 13

Total LT 5,080 6,224 5,651 6,873 5,963 7,327 16,694 20,424

HT CATEGORIES

HV1: Railway Traction 353 420 601 714 325 387 1,279 1,521

HV 2: Coal Mines 307 362 27 32 0 0 334 394

HV 3.1: Industrial Use 1,270 1,492 1,144 1,348 1,255 1,488 3,669 4,328

HV 3.2: Non-Industrial Use 160 194 263 317 215 260 638 771

HV 3.3: Shopping Mall 4 5 7 8 41 49 52 63

HV 3.4: Power Intensive Industries 38 52 66 91 286 402 390 545

HV 4 Seasonal & Non Seasonal 9 10 2 2 4 4 14 16

HV 5: HT Irrigation and Water Works 58 80 69 96 159 223 286 399

HV 6: Bulk Residential Users 170 224 72 95 11 15 252 333

HV 7: Synchronization/Start Up Power 0 0 0 0 5 6 5 6

Total HT 2,369 2,839 2,250 2,703 2,301 2,834 6,919 8,376

Total (LT+HT) 7,448 9,063 7,901 9,575 8,264 10,161 23,613 28,800


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12.1. Salient Features of the Tariff Proposal

The licensees have proposed increase in tariff rates along with certain changes in general terms and conditions of LT and

HT tariff. The proposed schedule of the Retail Tariff for FY 2015-16 is enclosed with this petition.

The salient features of the proposed changes are as elaborated below:

12.1.1. Power Factor Incentive for LT consumers having connected load of more than 3HP

Reason for proposed change in PF incentive: The petitioner is of the view, that, in principle, the power factor

incentives should be the prerogative of the licensee to promote its commercial interests with sharing some part of it with

consumers as consumers are required to invest in installation of capacitors to improve the power factor. As per the

Supply Code 2013, the consumer is required to install the capacitor having connected load of more than 3HP.

Therefore, it will be appropriate to provide power factor incentive for consumer whose inductive connected load is 3HP

or more. The consumer having connected load of less than 3HP inductive load will not be entitled for power factor

incentive as these consumers are not required to invest in installation of capacitors to improve the power factor.

12.1.2. Additional charges for excess demand: Definition of excess demand as provided in tariff order of FY’12 and

FY’15 is not justified and it is proposed to be retained the same as has been defined in Tariff Order for FY’11.

Reasons for proposed changes: As per the tariff order for FY12 the computation of excess demand is to be done on

the basis of difference of recorded maximum demand and 105% of contract demand. This clearly indicates that the

demand over and above the contract demand and up to 105% of contract demand shall not be termed as Excess Demand

and consumers would be billed on normal tariff without paying any additional charge and this is a breach of the

agreement. It means that the word “Contract” of the contract demand has no relevance to the agreement. This anomaly

needs to be reviewed and rectified and therefore change in definition of the excess demand is proposed.

12.1.3. Withdrawal of rural feeder rebate/incentive:

Reasons for proposed changes: As per the tariff order for FY15 the LV2.2 and HV3 categories of consumers are

provided incentive of rural feeder. In the current scenario of power supply position all the rural feeders excluding

agricultural feeder are provided 24 hours of supply. Therefore, it will be appropriate to withdraw the incentive for these

categories of consumers who are connected with the rural feeders.

12.1.4. Provision of terms and conditions of consumers who is not the consumer of the licensee and seeks to avail power

for synchronization with the grid is proposed to be removed.

Reasons for proposed changes: Since the terms and condition for generators connected to the grid but who are

not the consumer of the licensee and seek to avail power for synchronization with the grid or start -up power are

the matters related with the relevant regulation, such as supply code, regulation of CPP and are not linked with

the retail supply tariff. Therefore it is proposed to remove this condition from the retails supply tariff.

Based on the available information, the Petitioner has made sincere efforts to comply with the Regulations of

the Hon'ble Commission and discharged its obligations to the best of its ability and resources at its command.

However, should any further material information become available during the process of determination, the

Applicant be permitted to reserve the right to file such additional information and consequently amend/ revise the

application.


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12.1.5. Introduction of new Prepaid Metered Categories: LV 1.3 and LV 2.3

Reasons for proposed changes: Pre-paid metering, which operates on the concept of ‘pay before you use’ offers

a rewarding alternative to the conventional post-paid metering system which would eliminate the need for

collection itself. Implementation of pre-paid metering also has the potential of significantly impacting the

operational cost of distribution utilities by eliminating the need for meter reading (except for energy audit),

billing, bill printing and bill distribution. The detailed terms and conditions for the proposed categories are given

in the tariff schedules.

12.1.6. Power Factor Penalty for HV 1: Railways

Reasons for proposed changes: If the average monthly power factor of the consumer falls below 90 percent,

penalty will be levied at the rate of one percent of total energy charges for the month for each one percent fall in

the average monthly power factor below 90 percent. Power factor penalty shall be levied when both lead/ lag

power factor is recorded. This has been changed to ensure similarity with consumers of all other HT categories.

12.1.7. Addendum to Applicability provision for HV-6.2 tariff category

Reasons for proposed changes: At present single point HT supply under tariff category HV 6.2 is limited to

registered co-operative group housing societies. Residential colonies / complexes developed by the developers

and other such colonies are not covered under the said provisions. As such the resident welfare associations

who are willing to avail single point HT connection for their colonies / complexes for residential purposes are

not eligible under this category. A number of such colonies and complexes are coming up fast in urban areas

and are also willing to avail single point HT supply. Providing single point HT supply to such colonies /

complexes is beneficial from the point of view of monitoring the revenue and reduction in losses. Accordingly

changes have been proposed in the applicability clause of tariff category HV 6.2.

12.1.8. General Terms and Conditions for LT Tariff

Delayed payment Surcharge for all categories: Surcharge of Rs. 5 for a total amount up to Rs.500 per month and a

minimum of Rs. 10 or 1% of the bill on daily basis (capped at monthly maximum 10% of the net bill amount),

whichever is higher for billed amount of over Rs. 500 per month (including arrears) will be payable if the bills are

not paid up to due date. The part of a month will be reckoned as full month for the purpose of calculation of delayed

payment surcharge. The delayed payment surcharge will not be levied for the period after supply to the consumer

is permanently disconnected. This provision shall not be applicable to that category where the levy of

delayed payment surcharge has been prescribed separately.


102

13. Voltage-Wise Cost of Supply

13.1. Commission Directives

The Hon’ble MPERC has directed the Discom’s of MP to determine the voltage wise cost of supply vide its letter

dated 25 October 2013 with memo no. MPERC/RE/2013/2780. The Hon’ble Commission referred to the judgment

passed by Appellate Tribunal for Electricity (APTEL) in Appeal No. 103 of 2010 & IA Nos. 137 & 138 of 2010

regarding determination of voltage level wise Cost of Supply.

The extract of APTEL’s order is elaborated as below.

Extract of APTEL’s order

“32. Ideally, the network costs can be split into the partial costs of the different voltage level and the cost of supply at a

particular voltage level is the cost at that voltage level and upstream network. However, in the absence of segregated

network costs, it would be prudent to work out the voltage-wise cost of supply taking into account the distribution losses at

different voltage levels as a first major step in the right direction. As power purchase cost is a major component of the

tariff, apportioning the power purchase cost at different voltage levels taking into account the distribution losses at the

relevant voltage level and the upstream system will facilitate determination of voltage wise cost of supply, though not very

accurate, but a simple and practical method to reflect the actual cost of supply.

33. The technical distribution system losses in the distribution network can be assessed by carrying out system studies

based on the available load data. Some difficulty might be faced in reflecting the entire distribution system at 11 KV and

0.4 KV due to vastness of data. This could be simplified by carrying out field studies with representative feeders of the

various consumer mix prevailing in the distribution system. However, the actual distribution losses allowed in the ARR

which include the commercial losses will be more than the technical losses determined by the system studies. Therefore,

the difference between the losses allowed in the ARR and that determined by the system studies may have to be

apportioned to different voltage levels in proportion to the annual gross energy consumption at the respective voltage

level. The annual gross energy consumption at a voltage level will be the sum of energy consumption of all consumer

categories connected at that voltage plus the technical distribution losses corresponding to that voltage level as worked

out by system studies. In this manner, the total losses allowed in the ARR can be apportioned to different voltage levels

including the EHT consumers directly connected to the transmission system of GRIDCO. The cost of supply of the

appellant’s category who are connected to the 220/132 KV voltage may have zero technical losses but will have a

component of apportioned distribution losses due to difference between the loss level allowed in ARR (which includes

commercial losses) and the technical losses determined by the system studies, which they have to bear as consumers of the

distribution licensee.

34. Thus Power Purchase Cost which is the major component of tariff can be segregated for different voltage levels taking

into account the transmission and distribution losses, both commercial and technical, for the relevant voltage level and

upstream system. As segregated network costs are not available, all the other costs such as Return on Equity, Interest on

Loan, depreciation, interest on working capital and O&M costs can be pooled and apportioned equitably, on pro-rata

basis, to all the voltage levels including the appellant’s category to determine the cost of supply. Segregating Power

Purchase cost taking into account voltage-wise transmission and distribution losses will be a major step in the right

direction for determining the actual cost of supply to various consumer categories. All consumer categories connected to

the same voltage will have the same cost of supply. Further, refinements in formulation for cost of supply can be done

gradually when more data is available.”

It is most humbly submitted that the above mentioned order of APTEL has been challenged in the Hon’ble Supreme

Court of India by the Respondents in the case and the matter is under consideration before the Apex Court. Hoeverw,

as per the directives of the Hon’ble Commission the Discoms submit the details of calculation of the voltage wise

cost of supply as per the methodology provided by the APTEL.


103

13.2. Voltage-wise Losses

It is submitted that the MPERC Tariff Regulations do not provide segregation of normative losses for the Distribution

Licensees into voltage wise normative losses in respect of technical and commercial losses. Therefore, the Petitioners face

difficulty in segregation of normative losses in voltage level wise technical and commercial losses.

Determination of voltage-wise losses would require detailed technical studies of the Distribution network of the three

Discoms. For the purposes of illustrative computation of voltage-wise Cost of Supply, the petitioners have assumed

voltage-wise losses, the data therein is not verified and so, should not be relied upon.

13.2.1. Methodology

The Discoms have proposed the methodology for Voltage-wise Cost of Supply computation for three categories, namely:

c. EHT System (400 kV, 220 kV and 132 kV)

d. 33 KV System

e. 11 KV + LT System

For determination of Voltage-wise Cost of Supply, the proposed methodology involved the following steps:

1. Determine the voltage-wise Sales for three voltage levels.

2. Projection of voltage-wise loss levels based on historical numbers. It is pertinent to mention here that the loss

levels so determined are on assumption basis and it would require a detailed technical study of the Distribution

Network for the technical verification of the same. The Inter-state PGCIL and Intra-state MPPTCL losses are

allocated to the EHT System (400 kV, 220 kV and 132 kV).

a. It may also be noted that the percentage of EHT losses allocated to the three Discoms are different due to

the fact that different generating stations are assigned to the different Distribution company and each

draws its power from different 132 kV substation.

3. Determine the voltage-wise energy input based on sales and the losses. The sales numbers have been escalated by

the T&D loss% of the current voltage level as well as the next higher voltage level.

4. Since the breakup of technical and commercial losses at 11 kV +LT system is not available, 50% of the total loss

at this voltage level has been assumed as purely technical loss and remaining 50% loss has been assumed as

commercial loss which has been loaded to various voltage levels in the proportion of their sales.

5. The total Power Purchase Costs of each Discom is allocated to the three voltage levels based on the voltage-wise

input energy. All other costs of the Discom are allocated based on the sales to each voltage-level.

6. Non-tariff income has been completely assumed to be part of the revenue from 11 kV + LT voltage level.

7. Sum of total costs (less non-tariff income) divided by net energy input gives the voltage wise cost of supply for

the respective voltage level.


104

13.3. Calculation

The calculation for Voltage wise Cost of Supply for MP state is as shown below:

Table 63: Cost of Supply Calculation for East Discom for FY16

MP State

EHT

System

(400 kV,

220 kV &

132 kV)

33 KV

System

11 KV

+ LT

System

Total

Sales MU 2,429 1,399 12,070 15,897

Loss % % 5.33% 6.65% 16.61% 22.55%

Energy Input MU 2565 1583 16378 20,526

Energy Lost (Technical up to 33 kV voltage & 11

kV +LT technical and Commercial)

MU 137 184 4308

Commercial Loss assumed as 50% of 11 kV and LT

overall losses

MU 2,154

Balance 50% Commercial loss for all voltage in

proportion to Sales

MU 329 190 1,636

Net Energy Input MU 2,894 1,772 15,859 20,526

Power Purchase Costs - allocated based on voltage-

wise losses

Rs Cr 884 541 4,845 6,270

Other costs - allocated based on voltage-wise sales Rs Cr 460 265 2,287 3,013

Less: Other income - allocated based on voltage-

wise sales

Rs Cr 152 152

Total Costs (ARR requirement) - Including True Up Rs Cr 1,344 806 6,980 9,130

ACoS (including true-up) Rs/kWh 5.54 5.77 5.78 5.74

Table 64: Cost of Supply Calculation for Central Discom for FY16

MP State

EHT

System

(400 kV,

220 kV &

132 kV)

33 KV

System

11 KV

+ LT

System

Total

Sales MU 1,869 1,876 12,790 16,535

Loss % % 5.33% 5.70% 18.18% 23.39%

Energy Input MU 1975 2101 17508 21,584



MU 105 225 4718


overall losses

MU 2,359


proportion to Sales

MU 267 268 1,825



wise losses

Rs Cr 737 779 5,579 7,095



wise sales

Rs Cr 200 200

Total Costs (ARR requirement)- Including True Up Rs Cr 1,044 1,087 7,485 9,617



105

Table 65: Cost of Supply Calculation for West Discom for FY16

MP State

EHT

System

(400 kV,

220 kV &

132 kV)

33 KV

System

11 KV

+ LT

System

Total

Sales MU 1,116 2,636 14,053 17,805

Loss % % 5.30% 5.50% 15.03% 21.23%

Energy Input MU 1178 2946 18481 22,605



MU 62 310 4428


overall losses

MU 2,214


proportion to Sales

MU 139 328 1,747



wise losses

Rs Cr 482 1,199 6,599 8,281



wise sales

Rs Cr 180 180

Total Costs (ARR requirement)- Including True Up Rs Cr 606 1,491 7,974 10,071


Table 66: Cost of Supply Calculation for MP State for FY16

MP State

EHT

System

(400 kV,

220 kV &

132 kV)

33 KV

System

11 KV

+ LT

System

Total

Sales MU 5,414 5,911 38,913 50,237

Loss % % 5.32% 5.83% 16.65% 22.37%

Energy Input MU 5,718 6,630 52,367 64,715



MU 304 719 13,454 14,478


overall losses

MU 6,727


proportion to Sales

MU 735 785 5,208



wise losses

Rs Cr 2,103 2,519 17,023 21,646



wise sales

Rs Cr 0 0 533 533

Total Costs (ARR requirement)- Including True Up Rs Cr 2,999 3,389 22,469 28,857



106

13.4. Determination of Cross-Subsidy Surcharge

The Tariff Policy provides for the determination of cross- subsidy surcharge for various categories of consumers. As per

Clause 8.5.1 of the Tariff policy, the basis for determination of the aforementioned cross-subsidy surcharge is the

aggregate of top 5 % at the margin of the power purchase costs.

It is pertinent to mention here that Discoms have employed Merit-order dispatch while scheduling power from various

stations so as to procure the cheapest power available. Also the Petitioner has also considered backing down of

units/stations where variable cost is more than Rs 2.90 per unit (based on average IEX rate available in the market for sale)

to ensure that power procured from cheaper sources is fully utilized and avoid procurement of power from costlier

sources. The resultant benefit of reduced power procurement cost is in turn being passed on to the consumers, along with

backdown of few stations.

Hence, in light of above, the petitioner submits that the basis for determination of the aforementioned cross-subsidy

surcharge to be taken as cost of marginal power purchase of top 5% power scheduled by the Discom as per the

Merit-Order-Dispatch.

In addition, it is submitted that as per the formula provided in the National Tariff Policy for determination of cross subsidy

surcharge, the open access consumer is required to pay the difference of average tariff and the total cost (Rs./Unit) at a

particular voltage level. The Hon’ble Commission has determined the average tariff based on the power purchase cost as

per previous year’s available data. Any variation on account of such change in fuel cost is also passed on to the consumer

through FCA, which will result in an increase in average tariff by FCA amount. Therefore, it will be appropriate to

increase the cross subsidy surcharge to the extent of FCA charges payable for a particular period.


107

14. Compliance on Tariff Order FY 2014-15

The response of Discoms on the directives issued by Hon’ble Commission in retail supply tariff order for FY-15 is given

below:

14.1.1. Distribution losses:

14.1.1.1. Commission’s Directives:

Although all the Discoms have shown reducing trend of losses, efforts to reduce losses need to be further

intensified. The Discoms should not only endeavour to achieve the benchmarks but to improve further to

justify capital invested on loss reduction and system improvement.

14.1.1.2. East Discom submission

Following steps are being taken up to reduce the losses:

1. System strengthening Works / Aug. of transmission capacity:

In order to reduce the technical losses, the distribution system is being strengthened / augmented. During year

FY-15, following addition in the distribution system has been made till Oct’2014.

Sr. no. Particulars Unit As on

Mar'2013

Added

FY

2013-14

As on

Mar'14

Added FY

2014-15

(up to Oct-14)

(Overall)

1 33/11 kV Sub-stations. No. 922 25 947 9

2 Power Transformer No. 1463 134 1597 45

3 PTR Capacity MVA 5914.8 861.85 6776.65 349.25

4 33 kV Line Km 15288 757 16045 431

5 11 kV Line Km 95985 9557 105542 4735

6 LT Line Km 110614 2391 113005 1218

7 DTR No 116651 15350 132001 6701

8 DTR Capacity MVA 6430.62 614.93 7045.55 272.06

2. Implementation of Non-RAPDRP Scheme:

In order to bring down the Distribution losses the various works under Non-RAPDRP schemes are being

carried out in selected Non-RAPDRP towns. In Phase-I of the scheme 21 towns were selected. Average loss

level of these towns has reduced from 47.28% in the month of March-10 to 16.17% in the month of Sept-14.In

Phase-II of the scheme 27 towns have been selected, average loss level of these towns has reduced from

53.26% to 18.96% in the month of Sept’14.In Phase-III of the scheme 35 towns have been selected. Work in

35 towns is being executed with ADB assistance with estimated cost of Rs. 67.44 Cr. Average loss level of

these towns has reduced from 57.66% to 21.33% as on Sept’14.Further in Phase IV of the scheme 35 towns

have been selected with the estimated cost of Rs. 49.58 Cr. The work is under progress. The average loss level

of these towns has reduced from 50% to 26.46% as on Sept’14. Beside this, similar work in 98 Gram

Panchayats (Rural DC Head Quarters) was also carried out with an estimated cost of Rs. 27.57 Cr.

3. Feeder Separation plan:

There is a provision to separate 1645 no 11 kV feeders under Feeder separation scheme and it is expected that

after completion of entire project there would be reduction of 3% in T&D loss from the level in FY-10. The


108

T&D loss in FY-10 was 33.45% which has come down to 26.02% in Mar’13 and further 23.94% in Nov’13.

The reduction in line loss is in line with the objective of Feeder Separation Project.

14.1.1.3. West Discom submission

As per the Hon’ble Commission directives the discom is sincerely striving for reduction in line losses

and to bring it to the normative level of line loss trajectory notified by GoMP/ Commission. It is the only

outcome of sincere endeavor made by discom that the discom is performed well on this front. The

achievements made in loss level as comparison for previous financial year are as follows:

Comparison of losses(Apr-13 to Jul-13 vs Apr-14 to Jul-14)

2013-2014 2014-2015

Months Loss Months Loss

Apr-13 23.61 Apr-14 14.58

May-13 39.88 May-14 35.74

Jun-13 37.97 Jun-14 33.96

Jul-13 18.01 Jul-14 23.04

Average 29.87 Average 26.83

It is submitted that due to increase in supply hours and adverse ground realities, Discom is facing

difficulties to achieve distribution loss level according to loss trajectory defined by the Commission.

Discom has strengthened vigilance wing and launched intensive checking drives to curb pilferage of

energy. Vigilance cell has conducted regular raids to check and to keep surveillance on pilferage of

energy. Details from April 2014 to October 2014 are given as below:-

Connections

checked

No of cases of irregularities/theft

detected during the year

Total amount billed(Rs in lacs Total amount realized(Rs in lacs)

Direct

Theft Malpractice Total

Direct


Direct


101254 10259 7912 18171 3887.24 3290.49 7177.73 3205.61 2929.94 6135.55

Feeder separation and other schemes: Discom has launched the feeder separation scheme in two

phases. Phase one covers Indore, Dhar, Khandwa, Khargone, Barwani, Burhanpur and Ratlam districts

while phase two covers Ujjain, Dewas, Mandsaur, Neemuch, Alirajpur, Jhabua and Shajapur Districts.

Works are under execution.

Discom has also launched various schemes for system strengthening under GoMP / TSP. SCSP, Feeder

bifurcation, new irrigation pumps, ADB Second (TR 4 and 5), RGGVY( 10th and 11th Plan), JBIC First

and Second scheme.

20

22

24

26

28

30

32

34

Distribution Loss


109

Sr.

no Particulars

FY 2013-14

At the Start of

year

Additions during

the year

At the end

of year

1

Length of lines (ckt-km)

- 33kV 13,577 365 13,942

- 11kV 84,238 11365 95603

- LT 145878 1743 147621

Total 243693 13473 257166

2 Number of 33/11kV substations 1,091 49 1140

3

No. of Power Transformers 1,805 222 2027

Total MVA capacity of power

transformers 7,693 1010 8703

4

Number of Distribution Transformers 123805 22963 114768

Total MVA capacity of Distribution

Transformer 9,957 1027 10984

14.1.1.4. Central Discom submission

The distribution losses for the year 2013-14 were nearly 29% which have been brought down to 26.74%

up to 30-09-2014. This itself justifies the capital invested on system improvement works carried out by

the Discom.

14.1.2. Meterisation of unmetered connections


During the meeting held on 5th February, 2013 with the MDs of the Discoms and MPPMCL the issue of

delay in meterisation of feeders, agricultural DTRs and unmetered domestic consumers was discussed.

Discoms assured the Commission that all urban unmetered domestic connections would be provided with

meters by end of June, 2013. Meterisation with respect to feeders, agricultural DTRs and unmetered

rural domestic consumers would be completed by end of March, 2014. The Commission directs Discoms

to ensure 100% meterisation by end of March, 2014.

Commission’s Observation in Tariff Order for FY 2014-15:

During the meeting held on April 23, 2014 with the PS Energy GoMP, MDs of the Discoms and

MPPMCL, the issue of delay in meterisation of feeders, agricultural DTRs and unmetered domestic

consumers was discussed. Discoms assured the Commission that Meterisation with respect to feeders,

agricultural DTRs and unmetered rural domestic consumers would be completed as per directives of the

Commission. The Commission directs Discoms to submit the latest status in this regard within a month

and shall accordingly review the matter suitably.

14.1.2.2. East Discom Submission

The status and plan of meterisation of feeders un-metered domestic connection, agricultural DTRs and

feeders is as follows:-

(a) Feeder Meterisation: - All metering points of 33kV feeders and 11kV feeders have been provided

with meters.


110

(b) Meterization of un-metered domestic connections: - Meters have been provided on all un-

metered domestic connections of urban area. As far as rural area is concerned, during 2013-14 total

3,49,845 meters have been provided on rural un-metered domestic connections. Thus un-metered

DLF connections of rural area have reduced from 9,41,085 as on March-13 to 5,91,240 as on

March-14. Further during year 2014-15 up to Sept’14, total 2,11,615 meters have been provided in

un-metered DLF connections, thus at the end of Sept’14 total 3,79,625 un-metered DLF

connections are remaining. It is planned to provide meters on un-metered connections up to March-

2015.

(c) Meterization of Agricultural DTRs:- The company as on Sept-14 is having 65511 agricultural

predominant DTRs out of which 3,355 DTRs have been provided DTR meters. In addition to this

34,859 DTRs have been provided with 1,24,269 meters in their distribution boxes for individual

consumers. Further meterization of 20,000 DTRs is being taken up in the year 2014-15. The

balance DTR meterization is proposed to be taken up in the year 2015-16 & 2016-17

14.1.2.3. West Discom’s response

Discom has achieved 100% meterisation in respect of urban domestic category. Out of 14 circles 7 have

achieved 100% meterisation. Only 8.63% rural consumers are in unmetered category which will be

metered by 2015.The meterisation plan and factual position is submitted to Hon’ble commission vide

letter no MD/WZ/05/TRAC/12194 dated 15th Jul 2014 and order no MPERC/RE/2014/1243 and discom

will adhere to the meterization deadline.

14.1.2.4. Central Discom Submission

S.No. Category Total No. as on Jun’14 No. of unmetered as on Jun’14

1 Domestic (Rural) 1135272 232251

2 Feeder meter 33/11 KV 5193 503

3 DTR meter 149985 106518

All Domestic (Urban) consumers are metered and balance domestic (Rural) unmetered consumers are

being meterized during the year 2014-15 along with feeders. The Central Government is lodging a

scheme for 100% meterization in which all the unmetered agriculture DTRs will be meterized.

14.1.3. Capex plan for reduction of technical losses:

14.1.3.1. Commission‘s directives:

Discoms while submitting their Capex plans had assured the Commission that these plans cover

meterisation of unmetered connections. In addition it was also assured that all new connections would be

served with meters for which adequate provisions of meters have been made in the plans. The licensees

should closely monitor progress of implementation of the Capex plans and ensure that as directed

earlier, 100 % meterisation is achieved by end of March, 2014. The Discoms should also monitor and

inform the benefits accrued on execution of schemes under the Capex plans.


The licensees should closely monitor progress of implementation of the Capex plans to avoid slippages.

The Discoms should monitor the benefits accrued after execution of schemes under the Capex plan and

ensure that additional capex does lead to actual pay-back in commercial and technical terms as per

provisions envisaged in the schemes.


Company is continuously monitoring the benefits accrued after execution of schemes under the capex

plan. Year wise investment and reduction in T&D losses achieved is shown as below:


111

Particular Investment (Cr.) T&D losses (%)

2012-13 857.63 26.02

2013-14 1016.47 23.68

Thus investment has resulted in reduction of losses Scheme-wise unit saving.

14.1.3.3. West Discoms response:

Implementation of the Capex schemes is under progress. Benefits on account of schemes under execution

are evident in improved supply arrangements and continuous supply. Further, implementation of these

schemes is resulting in reduction of losses. The below table depicts the reducing trend of losses over past

years:


The licensee submits that the directives of the Commission are being adhered to.

14.1.4. Segregation of rural feeders into agricultural and others:


During the meeting with the MDs of the Discoms and MPPMCL on 5th Feb,2013 the Commission was

informed that the work of feeder segregation is being given the highest priority and shall be completed

soon. The Commission directs the Discoms to submit the quarterly status of progress of this scheme.

Commission’s Observation in Tariff Order for FY 2014-15

The Commission is in receipt of progress in the matter. Feeder separation is reported to be completed in

a majority of feeders under the schemes. However, other provisions of the schemes like installation of

DTRs, meters, laying of LT cables etc. are lagging behind. It is obvious that the present status of

implementation has been below expectations. Petitioners are directed to complete all works envisaged

under these schemes expeditiously.


East Discom is regularly submitting the progress report of feeder separation work according to the

directives of MPERC. The balance work of feeder separation like cabling, meters etc. is also being

carried out. Stern action is being taken against turnkey contractors, not performing as per given targets.

The corporate office is regularly monitoring the progress of FSP and all necessary action is being taken

to expedite the progress and to complete the balance work.

20

22

24

26

28

30

32

34

Distribution Loss


112

14.1.4.3. West Discom’ response:

The West Discom is way ahead in feeder separation scheme. The feeder separation scheme was launched

in two phases. The phase one covers Indore, Dhar, Khandwa, Khargone, Barwani, Burhanpur and Ratlam

districts while phase two of the scheme covers Ujjain, Dewas, Mandsaur, Neemuch, Alirajpur, Jhabua

and Shajapur Districts. . Feeder separation works are under execution. Discom has supplied the

electricity above the average of minimum daily supply hours as directed in the Tariff Order for FY 2012-

13 to the area where feeder separation scheme has been completed.


The progress for the year 2013-14 and targets for the year 2014-15 & 2015-16 is tabulated below:-

Year Wise Status of Physical and Financial Progress of Discom

Particulars

Contract Price 11 KV line 11 KV bay with VCB

FSP RGG

VY ADB Total FSP

RGG

VY ADB Total FSP

RGG

VY ADB Total

Rs. In Cr. Km No

FY13-14 143 66 37 246 3271 2115 144 5530 112 0 0 112

FY14-15 (as on Sept-14) 57 20 21 98 674 194 35 903 29 0 0 29

Year Wise Status of Physical and Financial Progress of Discom

Particulars

DTR's Cabling Connection served

FSP RGG

VY ADB Total FSP

RGG

VY ADB Total FSP

RGG

VY ADB Total

No Km No

FY13-14 3878 1463 1963 7304 2173 510 340 3023 68582 30852 8998 10843

2

FY14-15 (as on Sept-

14) 1282 147 1737 3166 613 103 63 779 29934 22689 4322 56945

Target for the year 2015-16

S.N Particulars Unit Target for 2015-16

1 Financial in CR. Rs.in Cr. 150.00

2 11 kV Feeder No. 126

3 Villages No. 1742

4 11 kV Add. Bay No. 130

5 11 kV Line Km 2200

6 New DTR No. 4000

7 LT Cabling Km 2500

8 Connection Served No. 50000

a. NSC No. 50000

b. Renovation of service connection No. 50000


113

14.1.5. Minimum supply hours:

14.1.5.1. Commission’s directives:

The Commission directs the Licensees that the minimum daily supply hours as directed in the Tariff

Order for FY 2012-13 shall be maintained in all areas until the feeder segregation activity is complete

and 24 hours supply is commenced.


The Commission directs the Licensees that the minimum daily supply hours as directed in the Tariff

Order for FY 2012-13 should be maintained in all areas.


Month-wise, area-wise average supply hours maintained (HH:MM).

Months CHQ DHQ THQ RURAL AREA

OTHERS AGRI

Jan-14 23:55 23:51 23:38 23:15 10:20

Feb-14 23:53 23:51 23:37 23:16 10:22

Mar-14 23:50 23:49 23:37 23:08 10:05

Apr-14 23:52 23:50 23:37 23:05 09:50

May-14 23:51 23:49 23:35 22:38 10:02

Jun-14 23:50 23:48 23:30 22:22 09:43

Jul-14 23:53 23:49 23:30 22:30 09:58

Aug-14 23:51 23:51 22:12 21:47 09:32

Sep-14 23:56 23:52 23:36 22:02 09:18

Oct-14 23:57 23:52 23:41 22:12 10:15


The supply hours in the West Discom for FY 2013-14 and FY 2014-15 (April to August) is submitted as

herein-as-under

AVERAGE SUPPLY HOURS WEST DISCOM FY2013-2014

CHQ DIS THQ RURAL

Sno Month INDORE UJJAIN MIX DLF IRR

1 Apr-13 23:42 23:54 23:53 23: 32 22:46 23:18 7:58

2 May-13 23:40 23:53 23:56 23:33 22:56 23:20 8:16

3 Jun-13 23.38 23:52 23:40 23:13 22:00 23:38 8:54

4 Jul-13 23:40 23:54 23:52 23:21 22:23 23:56 9:24

5 Aug-13 23:43 23:54 23:54 23:25 22:45 23:11 9:32

6 Sep-13 23:45 23:47 23:39 23:16 22:33 23:01 9:26

7 Oct-13 23:50 23:48 23:41 23:28 22:55 23:19 9:43

8 Nov-13 23:55 23:51 23:54 23:43 23:22 23:36 9:52

9 Dec-13 23:54 23:51 23:46 23:36 23:13 23:27 9:48

10 Jan-14 23:52 23:48 23:46 23:35 23:09 23:23 9:41

11 Feb-14 23:51 23:45 23:49 23:37 23:13 23:20 9:38

12 Mar-14 23:53 23:48 23:48 23:42 23:19 23:29 9:46

AVERAGE 23:47 23:50 23:48 23:30 22.53 23:15 09:20

AVERAGE SUPPLY HOURS WEST DISCOM from Apr-14 to Aug-14

CHQ DIS THQ RURAL

Sno Month INDORE UJJAIN MIX DLF IRR

1 Apr-14 23:50 23:52 23:52 23:43 23:26 23:35 9:54

2 May-14 23:45 23:52 23:43 23:21 23:05 23:05 9:34

3 Jun-14 23.51 23:47 23:46 23:23 22:55 22:55 9:22

4 Jul-14 23:46 23:51 23:44 23:22 22:43 22:43 9:14

5 Aug-14 23:50 23:50 23:50 23:21 22:39 22:39 9:15

AVERAGE

23:48 23:50 23:47 23:26 22.43 22:59 09:28


114


The average supply hours for the year 2014-15 up to Sep 2014 have been shown in the table given

below:-

Month Average Supply Hours 2014-15

CHQ DHQ THQ Mixed DLF Irrigation

Apr.2014 23:37 23:44 23:34 22:53 23:15 09:36

May2014 23:33 23:35 23:27 23:01 23:08 09:40

Jun.2014 23:32 23:54 23:22 22:45 22:51 09:32

Jul.2014 23:37 23:37 22:48 22:18 22:31 09:23

Aug.2014 23:27 23:08 21:01 20:08 20:21 09:03

Sept.2014 23:33 23:35 23:18 22:18 22:31 09:38


115

14.1.6. Appointment of Franchisees:


As per the Electricity Act, 2003, the Distribution Licensee may appoint Distribution Franchisee for

distribution of electricity in its Area of Supply. However, the Distribution Licensee is responsible for all

actions of Franchisee related to the delegated functions. Discoms should exercise due diligence not only

while appointing the Franchisees but also during their day to day functioning, so that the interest of

consumers as well as financial health of Discoms remain intact/protected. Discoms should update the

Commission on the status from time to time.

Commission’s Observation in the Tariff Order for FY 2014-15

Discoms should continue to inform updated status to the Commission from time to time.


The directives and observations of Hon’ble Commission have been noted carefully. The East Discom

has not appointed any new franchisee during FY 2014-15. At present, only one Distribution Franchisee

namely M/s Essel Vidyut Vitaran (Sagar) Pvt. Ltd. for Sagar City, is in operation with effect from

01/12/2012 under East Discom. The copy of agreement dated 10/05/2012 between Distribution

Franchisee and East Discom indicating terms and conditions of operation has already been provided to

Hon’ble Commission vide letter no. EZ/Comml/FD/3629 dated 23-06-2012. The functioning of

Distribution Franchisee Sagar City has so far been found to be satisfactory.


In compliance of the directives of MPERC vide para 1.6 pertaining to “Appointment of Franchisees”,

Status update of Appointment of Franchisees for distribution &Supply of Electricity in Ujjain City is as

under:

a) As per the directives a letter was issued to the DF M/S Essel Vidyut Vitran (Ujjain)Private limited

vide this office L.NoMD/WZ/05/24927 dated 17.12.2013 to inform their readiness for taking over

the franchisee area, in response to it the DF vide their L.No.EVV/UJ/13/1712/1 dated 17.12.2013

had mentioned that they require some time to remobilize the team for taking over the Ujjain DF area

and also to confirm 01.06.2014 as effective date.

b) The matter was put-up before BOD in its 54th

meeting held on 21.12.2013 in which BOD had

decided that the 1st June 2014 may be declared as Effective date for taking over the DF area by

Franchisee.

c) Accordingly Effective date i.e. 01.06.2014 was declared vide this office L.No MD/WZ/05/12-

14/1122 dated 20.01.2014.In this connection, the DF vide their L.no EVV/UJ/2014/2804/1 dated

28.04.2014 informed that as the model code of conduct is enforced doe to parliamentary Elections,

the circulation of Deputation policy may only be possible after 16th

May 2014.In circulation of

Deputation policy may only be possible after 16th

May 2014.In that context, DF mentioned that as

entire process of selection and recruitment of employees coming on deputation would take some

time, they would like to revise the Effective date to 15th

July 2014.

d) The matter was submitted before Business committee of company in its 41st meeting held on

30.04.2014 in which Business Committee had passed a resolution to revise the Effective date for

taking over the Franchisee area (Ujjain City) from 1st June 2014 to 15

th July 2014.

e) Accordingly letter was issued vide this office L.No.MD/WZ/05/9177 dated 28.05.2014 for revising

the effective date to 15th

July 2014.


116

f) During the course of completion of taken over activities, the DF vide his letter

No.EVV/UJN/MPKV/2014/1007/51 dated 10.07.2014 had requested that since completion of

activities mentioned in their letter dated 09.07.2014 would take some more time to finish, they

recommended to revise the effective date to 1st Aug 2014 or 15

th Aug 2014.Earlier,S.E. (O&M)

Ujjain vide his L No.6784 dated 28.06.2014 had also recommended to revise the effective date to

first date of the month instead of middle of month so as to avoid complication in financial

accounting, as the billing cycle of consumer is completed at the end of the month.

g) Accordingly, letter was issued vide this office L.No.MD/WZ/05/Franchisee/12140 dated 14.07.2014

for revising the effective date from 15.07.2014 to 01.08.2014 so as to avoid any complication in

consumer billing and corresponding DF billing.

h) In accordance of the Distribution Franchisee Agreement signed off between the MPPKVCL and

M/S Essel Vidyut Vitran(Ujjain)Private Limited Mumbai, the Electrical Distribution of Ujjain City

is handed over to the Distribution Franchisee on 00:00 hours of date 01.08.2014 for next 15 years on

Input Based Franchisee model.

i) From the date 02.08.2014,the Distribution Franchisee M/S Essel Vidyut Vitaran (Ujjain)Private

limited is looking after the electrical distribution system of Ujjain City including Maintenance and

Fuse off calls along with the Meter Reading, Billing, Issuance of Bills to consumers, Collection and

recovery thereof.

j) The Distribution Franchisee will ensure quality supply and will reduce the line losses with

improvement in consumer satisfaction. The tariff rates for all the Electricity bills issued by

Distribution Franchisee, M/S Essel Vidyut Vitaran (Ujjain) Pvt Ltd., will be same as decided by

Hon’ble Commission for the MPPKVCL and will provide subsidy as per the rules of Govt. of M.P.

k) A Distribution Franchisee Cell headed by Engineer In-charge and Suprintending

Engineer(O&M),MPPKVVCL Ujjain is monitoring the Distribution Franchisee working and this

cell at Ujjain will look after the working of Distribution Franchisee and will monitor the day to day

activities along with the resolution of problems to consumers if any arising due to the Distribution

Franchisee.


M/s Essel Vidyut Vitaran (Gwalior) Pvt. Ltd, have been appointed as distribution franchisee for Gwalior

City. For the operation of franchisee 15th Dec.2014 has been decided the effective date.


117

14.1.7. Issue of tariff card with first bill based on new tariff:


The Commission directs that the practice of providing tariff cards should be continued for tariff Order of

FY 2013-14.


The Commission directs that the practice of providing tariff cards should be continued for Tariff Order of

FY 2014-15.


East Discom has arranged to print tariff cards for the tariff order FY 2014-15 for different categories of

the consumers and the same were provided to the consumers.


The information related to tariff for FY2014-15 is issued to consumers of the Company


It is submitted that the tariff cards showing the tariff provisions have been issued to LT consumers, and

in addition, tariff schedule booklets have been provided to all HT consumers


118

14.1.8. Filing of ARR and tariff proposals in Hindi language


Subsequent to the filing of the ARR/Tariff Petition in English, Discoms have submitted its Hindi version

which was made public. The next filing of ARR/ tariff proposals should also be made in Hindi and

English.


The Hindi version of the subject petition will be submitted in due course after filing of petition in

English.


ARR for FY 2015-16 in Hindi will be submitted shortly


Hindi version of the main petition is being submitted subsequent to filing of petition in English


119

14.1.9. Accounting of rebates/incentives/ surcharge:


The Discoms are directed to continue to compile the requisite details in respect of HT consumers and

submit with their next ARR/ tariff proposal. They should also collect and submit the details in respect of

LT consumers


The Discoms are directed to continue to compile the requisite details in respect of HT consumers and

submit with their next ARR/ tariff proposal. They should also collect and submit the details in respect of

LT consumers.


The requisite information in respect of HT Consumers is being submitted in soft copy. However, in case

of LT consumers, the information is voluminous and is required to be retrieved from two separate billing

systems i.e. RMS and CC&B softwares as billing of most of the towns has been switched over to CC&B

from RMS. Both the software cells have been requested to provide the desired information which will

require some time to extract the information in similar fashion and consolidate the same. Therefore, the

requisite information in respect of LT consumers shall be submitted separately in due course.


Discom has complied with the Commission’s directive in respect of HT consumers. However, in respect

of LT consumers, the Discom is implementing R-APDRP project in which M/s TCS is developing a

billing software. In the billing software, TCS has included the features like separate rebate/ incentive/

surcharge.


The Discom will comply with the directives of the Commission.


120

14.1.10. Maintaining uniform accounts:


The Commission reiterates that Discoms should bring about uniformity in maintaining the accounts at an

early date. MPPMCL which is the holding Company of all the Discoms is directed to coordinate with the

Discoms to bring about such uniformity.


The Commission reiterates that Discoms should bring uniformity in maintaining the accounts at an early

date. MPPMCL, as holding Company of all the Discoms, is directed to coordinate with the Discoms to

bring about such uniformity.


From FY 2011-12 onwards East Discom is preparing Annual Accounts as per revised schedule VI of the

Companies Act, 1956.


The Company was incorporated on 31st May 2002 under Companies Act 1956(now Companies Act

2013). However, the commercial operations commenced from 1st June 2005 pursuant to Government of

Madhya Pradesh Notification No. 226 dated 31st May 2005. Schedule VI to the Companies Act,

1956(now Companies Act 2013) provides the manner in which every company shall prepare its Balance

Sheet, Statement of Profit and Loss and notes thereto.

The Ministry of Corporate Affairs (MCA) has issued a revised form of Schedule VI vide gazette

notification 30th March, 2011.

The requirements of the Revised Schedule VI, do not apply to companies as referred to in the proviso to

Section 211 (1) and Section 211 (2) of the Act, i.e., any insurance or banking company, or any company

engaged in the generation or supply of electricity or to any other class of company for which a form of

Balance Sheet and Profit and Loss account has been specified in or under any other Act governing such

class of company.

However, in the guidance note issued by Institute of Chartered Accountants of India, it is clarified that

for companies engaged in the generation and supply of electricity, neither the Electricity Act, 2003, nor

the rules framed there under, prescribe any specific format for presentation of Financial Statements by an

electricity company. Section 616(c) of the Companies Act states that the Companies Act will apply to

electricity companies, to the extent it is not contrary to the requirements of the Electricity Act. Keeping

this in view, Revised Schedule VI may be followed by such companies till the time any other format is

prescribed by the relevant statute.

As such, the financial statements for the year 2011-12 onwards are being prepared as per Revised

Schedule VI of the Companies act 1956, this ensure uniform presentations in the accounts of all Discoms

from the FY 2011-12 onwards. The company prepares its financial statements under historical cost basis

in accordance with Generally Accepted Accounting Principles (GAAP) and the Accounting Standards as

notified by the Companies (Accounting Standard) Rules 2006.

It is also submitted that ERP project of MPPKVVCL, Indore is proposed for procurement,

customization, implementation and subsequent support of Enterprises Resources Planning (ERP)

application system for finance, HR, Material Management and Project Management modules are in scope


121

of implementation. This ERP implementation will ensure best accounting practices and regulatory

compliance.


MPPMCL has been requested to hold a meeting of all the Discoms to finalize the methodology to be

adopted for maintaining uniform accounts

14.1.11. Compliance of Regulations:


The compliance of the directives should be maintained in future also.

Commission’s Observation in FY 2014-15

The compliance of the directives should be maintained in future also.


The instant petition is according to the provisions of the prevailing regulations of MPERC.


MPPKVVCL, Indore is committed to adhere directives of Hon’ble Commission.


The Discom will comply with the directives of the Commission.


122

14.1.12. Mandatory demand based tariff for all Non-domestic LV consumers having load in excess of 25

HP


The Commission directs the Central Discom to expedite the installation of AMR meters on remaining

installations.


The Commission directs the Central Discom to expedite the installation of AMR meters on remaining

installations


The give directive is not applicable for East Discom


Not applicable for West Discom


All the HT consumers of the Company have already been provided with AMR facility. The Company

has been taking installation, downloading and billing of balance LT high value consumers.


123

14.1.13. Payment of interest on consumer security deposit


During public hearings on the petition, some of the consumers have raised the issue that the petitioners

are not paying interest on consumer security deposit at the bank rate as specified in the Regulations. The

Commission directs Discoms to ensure that the payment of interest on consumer security deposit be

strictly made in accordance with the stipulations of the Regulations


In view of the submission of the Discoms in the matter, the Commission does not wish to pursue this

matter any further. However, it shall take up the matter again in case any noncompliance of the part of

the Discoms is brought to its notice.


The Revenue Management Software (RMS) and the new CC&B software that are being used for billing

have got the provision for calculation & payment of interest on consumer security deposits, at the bank

rate


In this regard it is submitted that the West Discom is strictly adhering the directive and ensured that the

payment of interest on consumer security deposit is made in accordance with the stipulations of the

Regulations.


The payment of interest on consumer’s security deposit is being made strictly as per the MPERC

Regulations.


124

14.1.14. Assessment consumption for billing to consumers


During public hearings on the petition, some of the consumers have raised the issue that the petitioners

are issuing the bills on assessed consumption even if the meter is working correctly and there is no

evidence of any malpractice or theft. The Supply Code, 2004 (as amended) provides for billing in case of

defective/ dysfunctional meters is reproduced below:

“9.17. In order to recover the energy charges for the duration when the meter remains dysfunctional,

average monthly consumption of previous three meter reading cycles shall be the basis of billing. In case

a check-meter is available, the readings of the meter may also be used for assessment of consumption. In

case of HT consumers if during the period when the main meter is defective, the check meter is not

installed or is also found defective, the quantity of electricity supplied shall be determined as stated

above; provided that if in the opinion of the licensee, the conditions in the consumer’s installation during

the month in question were such as to render billing on such average consumption not equitable either to

the consumer or to the licensee, the electricity supplied during such period shall be determined by the in

charge of the local area circle of the licensee. In the event of the consumer not being satisfied with such

determination, he may appeal to the in charge of the local Region of the licensee whose decision shall

normally be acceptable.”

The Supply code also provides for method of assessment of charges in case of theft of electricity.

The Commission has taken serious note of this practice. The Commission directs Discoms that unless the

meter is found defective/ dysfunctional or tampered or evidence of theft of energy in the premises is

established, no consumer should be billed on the basis of any kind of assessment of consumption other

than the consumption that is recorded in the meter. The Commission directs the Discoms to submit

compliance report on this directive within a month from the date of issue this order.


During the public hearing some of the stakeholders had raised the issue of assessment in cases where the

meter is correctly working and no other anomaly has been observed. The Commission directs the

Discoms to strictly comply with the provisions of the Regulations in the matter and take stringent action

in cases where noncompliance in the matter is found.


East Discom is strictly adhering to the directive and accordingly Directives to all the field offices have

already been issued to ensure assessment for billing only as per the provisions given in Supply

Code’2004 and the tariff order.


It is submitted that the West Discom is strictly adhering the directive, and unless the meter is found

defective/ dysfunctional or tampered or evidence of theft of energy in the premises is established, no

consumer is billed on the basis of any kind of assessment of consumption other than the consumption

that is recorded in the meter.


The Discom is complying with the directives of the Commission.


125

14.1.15. Proposal for Modifications in the terms and conditions of the tariff

14.1.15.1. Commission’s Directive:

The Commission observed that in the proposed Tariff Schedule, petitioners have proposed various

modifications in the terms and conditions of existing Tariff Schedule without elaborating the basis and

justification for such modifications. The Commission directs Discoms not to repeat such practice in

future. Discoms should separately indicate the proposed modifications in the terms and conditions of

Tariff Schedule along with the basis and justifications in future in the ARR/tariff petition.


East Discom in its tariff petition always submits its proposal for New Tariff along with proposed

modifications in the terms and conditions supported by appropriate justifications which is according to

the provisions of the Regulation.


The Commission’s directives have been followed in the ARR/Tariff petition.


The Commission’s directives have been followed in the ARR/Tariff petition.


126

TARIFF SCHEDULES

TARIFF SCHEDULES FOR LOW TENSION CONSUMERS

Tariff Schedules Page No

LV 1- Domestic 125-127

LV 2- Non Domestic 128-130

LV 3- Public Water Works and Street Lights 131

LV 4- LT Industrial 132-134

LV 5- Agricultural and allied activities 135-139

General Terms and Conditions 140-146


127

15. TARIFF SCHEDULES

Tariff Schedule-LV1 DOMESTIC

Applicability:

This tariff is applicable for light, fan and power for residential use only. Dharamshalas, old age homes, day

care centres for senior citizens, rescue houses, orphanages, places of worship and religious institutions will also

be covered under this category.

Tariff:

LV 1.1 (Consumers having sanctioned load not more than 100 watts (0.1 kW) and consumption not more

than 30 units per month)

(a) Energy Charge and Fixed Charge – For metered connection

Particular

LV1.1

Monthly Consumption

(units)

Energy Charge (paise per unit) Monthly Fixed Charge

Rural & Urban

Existing Proposed Existing Proposed

Up to 30 units 290 330 NIL NIL

(b) Minimum Charges: Rs. 40 per connection per month as minimum charges is applicable to this

category of consumers.

LV 1.2

(a) Energy Charge and Fixed Charge – For metered connection

Monthly

Consumption

Slab (units)

Energy Charge with

telescopic benefit(paise per

unit)

Monthly Fixed Charge

Urban/Rural areas (Rs)


Urban areas Rural areas Urban areas Rural areas

Up to 50 units 340 440 40 per

connection

25 per

connection

50 per

connection

40 per

connection

51 to 100 units 385 485 65 per

connection

40 per

connection

75 per

connection

60 per

connection

101 to 300 units 480 570 75 for each

0.5KW of

authorized load

50 for each

0.5KW of

authorized load

90 for each 0.5

kW of authorized

load

72 for each 0.5

kW of

authorized load

301 to 500 units 520 615 80 for each

0.5KW of

authorized load

70 for each

0.5KW of

authorized load

100 for each 0.5

kW of authorized

load

80 for each 0.5

kW of

authorized load


128

Monthly

Consumption

Slab (units)

Energy Charge with

telescopic benefit(paise per

unit)


Urban/Rural areas (Rs)


Urban areas Rural areas Urban areas Rural areas

Above 500 units 555 630 85 for each

0.5KW of

authorized load

70 for each

0.5KW of

authorized load

110 for each 0.5

kW of authorized

load

88 for each 0.5

kW of

authorized load

Minimum Charges: Rs. 60 per connection per month as minimum charges towards energy charges are

applicable for above categories.

Note: The Authorized Load shall be as defined in the Madhya Pradesh Electricity Supply Code, 2013, as amended from

time to time. (Every 75 units of consumption per month or part thereof shall be considered equal to 0.5 kW of

authorized load. Example: If consumption during the month is 125 units, then the authorized load will be taken as 1

kW. In case the consumption is 350 units then the authorized load will be taken as 2.5 kW.)

Temporary/ DTR

meter connection

Energy Charge –

Urban and Rural

Area


Existing Proposed

Existing Proposed Urban areas Rural areas Urban areas Rural areas

Temporary

connection for

construction of

own house (max.

up to one year).

675 825

300 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is the

highest

200 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is the

highest

360 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is

highest

240 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is the

highest

Temporary

connection for

social/ marriage

purposes and

religious

functions.

675 825

40 for each one

kW of

sanctioned or

connected or

recorded load

whichever is

highest for each

24 hours

duration or part

thereof

20 for each one

KW of

sanctioned or

connected or

recorded load

whichever is

highest for each

24 hours

duration or part

thereof

50 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is

highest for each

24 hours

duration or part

thereof

25 for each one

kW of

sanctioned or

connected or

recorded load,

whichever is the

highest for each

24 hours

duration or part

thereof

Supply through

DTR meter for

clusters of

Jhuggi/Jhopadi till

individual meters

are provided

300 300 NIL NIL NIL NIL

Minimum Charges: Rs. 500/- per connection per month is applicable towards energy charges for temporary connection

and no minimum charges are applicable for supply through DTR meter for clusters of Jhuggi/Jhopadi.


129

Energy Charge and Fixed Charge for un-metered domestic connections:

Particulars Units and Energy Charge to be billed per month for

unmetered connections (Paise per Unit) Monthly Fixed Charge


Un-metered connection

in urban areas 100 units @ 420 per unit 100 units @ 510 per unit

75 per

connection

90 per

connection

Un-metered connection

in rural areas 75 units @ 340 per unit 75 units @ 410 per unit

30 per

connection

40 per

connection

Minimum charges: No minimum charges are applicable to this category of consumers

LV 1.3: Prepaid Metered Category: This category would only be applicable for consumers having connected load of more than 3KW.

Urban/ Rural Areas (paise per unit)

All units 650

Minimum charges: No minimum charges are applicable to this category of consumers

Specific Terms and Conditions for LV-1 category:

a) The Energy Charges corresponding to consumption recorded in DTR meter shall be equally divided

amongst all consumers connected to that DTR for the purpose of billing. The Distribution Licensee will

obtain consent of such consumers for billing as per above procedure.

b) In case Energy Charges for actual consumption are less than minimum charges, minimum charges shall

be billed towards energy charges. All other charges, as applicable, shall also be billed.

c) Other terms and conditions shall be as specified under General Terms and Conditions for Low Tension

Tariff.


130

Tariff Schedule – LV-2 NON DOMESTIC

LV 2.1

Applicability:

This tariff is applicable for light, fan and power to Educational Institutions including workshops and laboratories of

Engineering Colleges / Polytechnics/ITIs (which are registered with /affiliated/ recognized by the relevant Govt. body

or university), Hostels for students or working women or sports persons (run either by Govt. or individuals)

Sub category

Energy Charge

(paise/unit) Monthly Fixed Charge (Rs.)

Urban/ Rural areas Existing Proposed

Existing Proposed Urban Area Rural Area Urban Area Rural Area

Sanctioned load based

tariff ( only for connected

load up to 20KW

520 610 90 per kW 60 per kW 100 per kW 80 per kW

Optional - Demand based

Tariff (Only for contract

demand above 10 kW and

up to 20 kW)

520 610

180 per kW or

144 per kVA

of billing

demand

120 per kW or

96 per KVA

of billing

demand

200 per kW or

160 per kVA

of billing

demand

160 per kW or

128 per KVA

of billing

demand

Mandatory demand

based tariff for contract

demand above 20 kW

520 610

180 per kW or

144 per kVA

of billing

demand

120 per kW or

96 per KVA

of billing

demand

200 per kW or

144 per kVA

of billing

demand

160 per kW or

128 per KVA

of billing

demand

LV 2.2

Applicability:

This tariff is applicable for light, fan and power to Railways (for purposes other than traction and supply to Railway

Colonies/water supply), Shops/showrooms, Parlors, All Offices, Hospitals and medical care facilities including Primary

Health Centers, clinics, nursing homes belonging to either Govt. or public or private organizations, public buildings, guest

houses, Circuit Houses, Government Rest Houses, X-ray plant, recognized Small Scale Service Institutions, clubs,

restaurants, eating establishments, meeting halls, places of public entertainment, circus shows, hotels, cinemas,

professional's chambers (like Advocates, Chartered Accountants, Consultants, Doctors etc.), bottling plants, marriage

gardens, marriage houses, advertisement services, advertisement boards/ hoardings, training or coaching institutes,

petrol pumps and service stations, tailoring shops, laundries, gymnasiums, health clubs, telecom towers for

mobile communication and any other establishment (except those which are covered in LV 2.1), who is required to pay

Commercial tax/service tax/value added tax (VAT)/entertainment tax/luxury tax under any Central/State Acts.

Sub category Energy Charge (paise/unit) Monthly Fixed Charge (Rs.)

Urban/Rural areas Urban areas Rural areas Urban areas Rural areas


On all units if

monthly

consumption is

not more than

50 units


On all units in

case monthly

consumption

exceeds 50 units



131

Sub category Energy Charge (paise/unit) Monthly Fixed Charge (Rs.)

Urban/Rural areas Urban areas Rural areas Urban areas Rural areas


Optional

demand based

Tariff (only for

contract demand

above 10 kW

and up to 20

kW)

525 590

190 per kW

or 152 per

KVA of

billing

demand

120 per kW

or 96 per

KVA of

billing

demand

213 per kW

or 170 per

KVA of

billing

demand

170 per kW

or 136 per

KVA of

billing

demand

Mandatory demand based

tariff for

contract demand

above 20 KW

525 590

190 per kW

or 152 per

KVA of

billing

demand

120 per kW

or 96 per

KVA of

billing

demand

212 per kW

or 170 per

KVA of

billing

demand

170 per kW

or 136 per

KVA of

billing

demand

Temporary

connections

including Multi

point temporary

connection at

LT for Mela *

715 800

130 per kW

or part

thereof of

sanctioned

load or

connected or

recorded load

whichever is

highest

85 per kW or

part thereof

of sanctioned

load or

connected or

recorded load

whichever is

highest

170 per kW

or part

thereof of

sanctioned

load or

connected or

recorded load

whichever is

highest

136 per kW

or part

thereof of

sanctioned

load or

connected or

recorded load

whichever is

highest

Temporary

connection for

marriage

purposes at

marriage

gardens or

marriage halls or

any other

premises

covered under

LV 2.1 and 2.2

categories

715 (Minimum

consumption

charges shall be

billed @ 6 Units

per kW or part

thereof of

sanctioned or

connected or

recorded load,

whichever is the

highest for each

24 hours duration

or part thereof

subject to a

minimum of Rs.

500)

800 (Minimum

consumption

charges shall

be billed @ 6

Units per kW

or part thereof

of sanctioned

or connected or

recorded load,

whichever is

the highest for

each 24 hours

duration or part

thereof subject

to a minimum

of Rs. 500)

50 for each

kW or part

thereof of

sanctioned or

connected or

recorded load

whichever is

the highest

for each 24

hours

duration or

part thereof

30 for each

kW or part

thereof of

sanctioned or

connected or

recorded load

whichever is

the highest

for each 24

hours

duration or

part thereof

60 for each

kW or part

thereof of

sanctioned or

connected or

recorded load

whichever is

the highest

for each 24

hours

duration or

part thereof

40 for each

kW or part

thereof of

sanctioned or

connected or

recorded load

whichever is

the highest

for each 24

hours

duration or

part thereof

For X-Ray plant Additional Fixed Charge (Rs. per machine per month)

Existing Proposed

Single Phase 450 550

Three Phase 650 800

Dental X-ray

machine 50 75

* In case permission for organizing Mela is granted by Competent Authorities of the Government of Madhya Pradesh


132

LV 2.3:

Applicability:

Prepaid Metered Category: this category would only be applicable for consumers having connected load of more than

10KW.

Urban/ Rural Areas (paise per unit)

All units 750


a) Minimum consumption: The consumer shall guarantee a minimum annual consumption of 360

units per kW or part thereof in urban areas and 180 units per kW or part thereof in rural areas of sanctioned

load or contract demand (in case of demand based charges) . However, the load of X-Ray unit shall be

excluded while considering the load of the consumer for calculation of minimum consumption. The method

of billing minimum consumption shall be as given in General Terms and Conditions of Low Tension

tariff.

b) Additional Charge for Excess demand: Shall be billed as given in General Terms and Conditions of

Low Tension tariff.

c) Other terms and conditions shall be as specified under General Terms and Conditions of Low Tension

Tariff.

d) For LV-2.1 and LV-2.2: Any consumer having contract demand of 10 kW or more and up to 20 kW may

opt for demand based Tariff, however, for the consumers having contract demand in excess of 20 kW

demand based tariff is mandatory. The Distribution Licensee shall provide Trivector /Biverctor Meter capable

of recording Demand in kVA/kW, kWh, kVAh.


133

Tariff Schedule – LV-3 -> PUBLIC WATER WORKS AND STREET LIGHTS

Applicability:

The tariff LV-3.1 is applicable for Public Utility Water Supply Schemes, Sewage Treatment Plants, Sewage

Pumping Installations run by P.H.E. Department or Local Bodies or Gram Panchayats or any other organization

authorized by the Government to supply/ maintain public water works / sewerage installations and shall also be

applicable to electric crematorium maintained by local bodies/trusts.

Note: Private water supply scheme, water supply schemes run by institutions for their own

use/employees/townships etc. shall not fall in this category. These shall be billed under the appropriate tariff

category to which such institution belongs. In case water supply is being used for two or more different

purposes then entire consumption shall be billed for purpose for which the tariff is higher.

The tariff LV-3.2 is applicable to traffic signals and lighting of public streets or public places including parks, town

halls, monuments and its institutions, museums, public toilets, public libraries, reading rooms run by the

Government or Local Bodies, and Sulabh Shochalaya.

Category of consumers/area of applicability Energy Charge Monthly Fixed Charge

Minimum

charges (Paise per unit) (Rs per KW)

LV 3.1 Public Water Works Existing Proposed Existing Proposed

Municipal Corporation/ Cantonment board 365 450 140 200 No

minimum

charges

Municipality/ Nagar Panchayat 365 450 120 180

Gram Panchayat 365 450 50 100

Temporary supply 1.3 times the applicable tariff

LV 3.2 Street light

Municipal Corporation/ Cantonment board 380 500 235 350 No

Minimum

charges Municipality/ Nagar Panchayat 375 475 210 300

Gram Panchayat 375 475 50 100


(a) Incentives for adopting Demand Side Management:

An incentive equal to 5 % of Energy Charges shall be given on installation and use of energy saving

devices (such as ISI energy efficient motors for pump sets and programmable on-off/ dimmer switch

with automation for street lights). Incentive will be admissible only if full bill is paid within due dates

failing which all consumed units will be charged at normal rates. Such incentive will be

admissible from the month following the month in which energy saving devices are put to use and

are verified by a person authorized by the Distribution Licensee. This incentive will continue to be

allowed till such time these energy saving devices remain in service. The Distribution Licensee is

required to arrange wide publicity of above incentive.

(b) Other terms and conditions shall be as specified under General Terms and Conditions of Low

Tension Tariff.


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Tariff Schedule – LV-4 -> LT INDUSTRIAL

Applicability:

Tariff LV-4 is applicable to light, fan and power for operating equipment used by printing press and any other

industrial establishments and workshops (where any processing or manufacturing takes place including tyre re-

treading). These tariffs are also applicable to cold storage, gur (jaggery) making machines, flour mills, Masala Chakkies,

hullers, khandsari units, ginning and pressing units, sugar cane crushers (including sugar cane juicing machine),

power looms, dal mills, besan mills, and ice factories and any other manufacturing or processing units (excluding

bottling plant) producing/processing food items or processing agriculture produce for preservation/increasing its shelf

life and Dairy units ( where milk is processed to produce other end products of milk other than chilling, pasteurization

etc.)

Category of

consumers

Monthly Fixed Charge (Rs.) Energy Charge (paise

per unit)

Urban/Rural area


Urban Areas Rural Areas Urban Areas Rural Areas

4.1 Non seasonal consumers

4.1 a

LT Industries

having connected

load up to 25 HP

90 per HP 30 per HP 105 per HP 40 per HP 400 440

4.1b

Demand based

tariff (Contract

demand up to

100HP)

220 per kW

or 176 per

KVA of

billing

demand

110 per kW

or 88 per

KVA of

billing

demand

250 per kW

or 200 per

KVA of

billing

demand

200 per kW

or 160 per

KVA of

billing

demand

520 570

4.1c

Demand based

tariff (Contract

demand more than

100HP and below

150HP)

300 per kW

or 240 per

KVA of

billing

demand

210 per kW

or 168 per

KVA of

billing

demand

350 per kW

or 280 per

KVA of

billing

demand

280 per kW

or 224 per

KVA of

billing

demand

535 590

4.1 d Temporary

connection 1.3 times of the applicable tariff

4.2 Seasonal Consumers (period of season shall not exceed 180 days continuously). If the declared season or off-season

spreads over two tariff periods, then the tariff for the respective period shall be applicable.

4.2

a

During

season

Normal tariff as for Non seasonal

consumers

Normal tariff as for non seasonal

consumers

Normal tariff as for non

seasonal consumers

4.2

b

During

Off -

season

Normal tariff as for Non Seasonal

Consumers on 10% of contract

demand or actual recorded demand

whichever is more

Normal tariff as for Non

Seasonal Consumers on 10% of

contract demand or actual

recorded demand whichever is

more

120 % of normal tariff as

for Non-seasonal

consumers


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Terms and Conditions:

(a) The maximum demand of the consumer in each month shall be reckoned as four times the largest amount of

kilovolt ampere hours delivered at the point of supply of the consumer during any continuous fifteen

minutes in that month.

(b) Any consumer may opt for demand based tariff, however for the consumers having connected load above 25

HP , demand based tariff is mandatory and the licensee shall provide Tri vector/ Bi vector Meter capable of

recording Demand in kVA/ kW, kWh, kVAh and Time of Use consumption

(c) Minimum Consumption: Shall be as per following:

(c.1) For connected load up to 100HP

i. For LT Industries in rural areas: The consumer shall guarantee a minimum annual consumption

(kWh) based on 180 units per HP or part thereof of contract demand irrespective of whether any

energy is consumed or not during the year.

ii. For LT Industries in urban areas: The consumer shall guarantee a minimum annual consumption



iii. The consumer shall be billed monthly minimum 15 units per HP per month in rural area and 30 units

per HP per month in urban area in case the actual consumption is less than above specified units.

iv. Method of billing of minimum consumption shall be as given in the General Terms and Conditions

of Low Tension tariff.

(c.2) For connected load more than 100 HP

i. For LT Industries in rural areas: The consumer shall guarantee a minimum annual consumption



ii. For LT Industries in urban areas: The consumer shall guarantee a minimum annual consumption



iii. The consumer shall be billed monthly minimum 20 units per HP per month or part thereof of

contract demand in rural area and 40 units per HP per month or part thereof of contract demand in

urban area in case the actual consumption is less than above specified units.

iv. Method of billing of minimum consumption shall be as given in the General Terms and

Conditions of Low Tension Tariff.

(d) Additional Charge for Excess Demand: Shall be billed as given in the General Terms and Conditions of

Low Tension Tariff.

(e) Other terms and conditions shall be as specified under General Terms and Conditions of Low Tension

Tariff.


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(f) Other Terms and conditions for seasonal consumers:

i. The consumer has to declare months of season and off season for the financial year 2015-16 within 60

days of issue of Tariff Order and inform the same to the Distribution Licensee. If the consumer has

already declared the period of season and off-season during this financial year prior to issue of this

Order, same shall be taken into cognizance for the purpose and accepted by the Distribution Licensee.

ii. The seasonal period once declared by the consumer cannot be changed during the financial year.

iii. This tariff is not applicable to composite units having seasonal and other category of loads.

iv. The consumer will be required to restrict his monthly off season consumption to 15% of the

highest of average monthly consumption during the preceding three seasons. In case this limit is exceeded

in any off season month, the consumer will be billed under Non seasonal tariff for the whole financial

year as per the tariff in force.

v. The consumer will be required to restrict his maximum demand during off season up to 30 % of the contract

demand. In case the maximum demand recorded in any month of the declared off season exceeds this

limit, the consumer will be billed under Non seasonal tariff for the whole financial year as per the tariff in

force.


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Tariff Schedule – LV - 5 -> AGRICULTURE AND ALLIED ACTIVITIES

Applicability:

The tariff LV-5.1 shall apply to connections for agricultural pump, chaff cutters, threshers, winnowing

machines, seeding machines and irrigation pumps of lift irrigation schemes including water drawn by agriculture

pumps for use by cattle.

The tariff LV-5.2 shall apply to connections for nurseries, farms growing flowers/ plants/ saplings/ fruits, mushroom and

grasslands.

The tariff LV-5.3 shall apply to connections for fisheries ponds, aquaculture, sericulture, hatcheries, poultry farms,

cattle breeding farms and those dairy units only where extraction of milk and its processing such as chilling,

pasteurization etc. is done.

The tariff LV- 5.4 shall apply to connections for permanent agricultural pump, chaff cutters, threshers, winnowing

machines, seeding machines and irrigation pumps of lift irrigation schemes including water drawn by agriculture

pumps for use by cattle to whom flat rate tariff is applicable.

S. No. Sub-Category Monthly Fixed

charges (Rs.)

Energy charges

(Paise per unit)

Monthly

Fixed

charges

(Rs.)

Energy charges

(Paise per unit)

Existing Proposed

LV- 5.1

a) (i) First 300 units per

month NIL 320 NIL 410

(ii) Above 300 units up to

750 units in the month NIL 380 NIL 460

(iii) Rest of the units in the


b) Temporary

connections NIL 405 NIL 560

c) DTR metered group

consumers NIL 300 NIL 300

LV-5.2

a) (i) First 300 units per


(ii) Above 300 units up to

750 units in the month NIL 380 NIL 460

(iii) Rest of the units in the


b) Temporary

connections NIL 405 NIL 490

LV-5.3

a) Up to 25 HP in urban

areas 55 per HP 375 75 per HP 396

b) Up to 25 HP in rural

areas 20 per HP 375 30 per HP 396

c)

Demand based tariff (

Contract demand and

connected load up to

100 HP) in urban

170 per kW or 136

per kVA of billing

demand

455

188 per kW or

150 per kVA

of billing

demand

513


138

S. No. Sub-Category Monthly Fixed

charges (Rs.)

Energy charges

(Paise per unit)

Monthly

Fixed

charges

(Rs.)

Energy charges

(Paise per unit)

Existing Proposed

areas

d)

Demand based tariff (

Contract demand and

connected load up to

100 HP) in rural areas

80 per kW or 64 per

kVA of billing

demand

455

100 per kW or

80 per kVA of

billing

demand

513

LV 5.4

Agriculture flat rate

exclusive of subsidy

*

Rate payable by the

consumer in Rs per

HP per month for

months of April to

September

Rate payable by

the consumer in

Rs per HP per

month for the

months of October

to March Same as previous tariff order

a) Three phase- urban 100 100

b) Three phase- rural 100 100

c) Single phase urban 100 100

d) Single phase rural 100 100

* see para 1.2 of terms and conditions


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Terms and Conditions:

1.1. Billing of consumers under tariff schedule LV 5.1: Billing to the consumers covered under tariff

schedule LV 5.1 shall be done on a monthly basis based on the consumption recorded in the meter.

Unmetered temporary connection under this schedule shall be billed on the basis of assessment of

consumption provided under condition 1.3 (iii) of this schedule.

1.2. Billing of consumers under tariff schedule LV 5.4: Rates payable by the consumer under tariff schedule

LV 5.4 are exclusive of subsidy. The bill for the consumer covered under the tariff schedule LV 5.4 shall be

calculated at the rates specified under the tariff schedule LV 5.1 based on norms for assessment of units per

HP specified under condition 1.3 of this schedule. The consumer shall be required to pay at the rates specified

under tariff schedule LV 5.4 and the balance amount of the bill shall be paid by the State Govt. as

advance subsidy to the Distribution licensee.

1.3. Basis of energy audit and accounting for categories LV 5.1 and LV 5.4:

i) For energy audit and accounting purposes, actual billed consumption of metered consumers covered

under tariff schedule LV 5.1 and LV 5.4 shall be considered.

ii) For unmetered agriculture consumers under LV 5.4 category, assessed consumption shall be as per

following norms

Particulars No. of units per HP or part thereof of sanctioned load per

month

Urban Area Rural Area

Type of Pump Motor April to

Sept

Oct to

March

April to

Sept

Oct to

March

Three Phase 90 170 80 170

Single Phase 90 180 90 180

iii) For unmetered temporary agriculture consumers under LV 5.1 category, assessed consumption shall be

as per following norms:

Particulars No. of units per HP or part thereof of sanctioned load per

month

Type of Pump Motor Urban Area Rural Area

Three Phase 220 195

Single Phase 230 205

1.4. Agricultural consumers opting for temporary supply shall have to pay the charges in advance for three

months including those who request to avail connection for one month only subject to replenishment

from time to time for extended period and adjustment as per final bill after disconnection. Regarding

temporary connection for the purpose of threshing the crops, temporary connection for a period of one

month can be served at the end of Rabi and Kharif seasons only with payment of one month’s charges in

advance.

1.5. Following incentive* shall be given to the metered agricultural consumers on installation of energy saving

devices –

S. No. Particulars of Energy Saving Devices Rate of rebate

1. ISI / BEE star labeled motors for pump sets 15 paise per unit


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2. ISI / BEE star labeled motors for pump sets and use of frictionless

PVC pipes and foot valve

30 paise per unit

3. ISI / BEE star labeled motors for pump sets and use of frictionless

PVC pipes and foot valves along with installation of shunt

capacitor of appropriate rating

45 paise per unit

*Incentive shall be allowed on the consumer’s contribution part of the normal tariff (full tariff minus amount of

Govt. subsidy per unit, if any) for installation of energy saving devices under demand side management. This incentive

will be admissible only if full bill is paid within due dates failing which all consumed units will be charged at normal

rates. Incentive will be admissible from the month following the month in which Energy Saving Devices are put to use

and its verification by a person authorized by the Distribution Licensee. The Distribution Licensee is required to

arrange wide publicity to above incentive in rural areas. The licensee is required to place quarterly information regarding

incentives provided on its web site.

1.6. Minimum consumption

(i) For Metered agricultural consumers (LV-5.1 and LV-5.2): The consumer shall guarantee a minimum

consumption of 30 units per HP or part thereof of connected load per month for the months from April to

September and 90 units per HP or part thereof of connected load per month for the months from October to

March irrespective of whether any energy is consumed or not during the month.

(ii) For other than agricultural use (LV-5.3) :

a) The consumer will guarantee a minimum annual consumption (kWh) based

on 180 units/HP or part thereof of contract demand in notified rural areas and 360 units/HP or part

thereof of contract demand in urban areas irrespective of whether any energy is consumed or not during

the year.

b) The consumer shall be billed monthly minimum 15 units per HP per month

in rural area and 30 units per HP per month in urban area in case the actual consumption is less than

monthly minimum consumption (kWh).

c) Method of billing of minimum consumption shall be as given in the

General Terms and Conditions of Low Tension Tariff.

1.7. Additional Charge for Excess Demand: Shall be billed as given in the General Terms and Conditions of LT

Tariff.

1.8. Delayed payment surcharge in case of agriculture consumers on LV - 5.4 flat rate tariff shall be levied @ of

Rs 1 every month for each block or part thereof of arrears of Rs.100/-. For other sub categories of this Tariff

Schedule, the delayed payment surcharge shall be billed as specified under General Terms and Conditions

of Low Tension Tariff.

1.9. Specific conditions for DTR metered consumers:

a. All the consumers connected to the DTR shall pay the energy charges for the units worked out based on

their actual connected load.

b. The Distribution Licensee will obtain consent of such connected consumers for billing as per

procedure specified in (a) above.


141

1.10. One lamp up to 40 W is permitted at or near the pump in the power circuit.

1.11. The use of three phase agriculture pump by installing external device during the period when the

supply is available on single phase, shall be treated as illegal extraction of energy and action as per

prevailing rules and Regulations shall be taken against the defaulting consumer.

1.12. Other terms and conditions shall be as specified under General Terms and Conditions of Low Tension

Tariff.


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GENERAL TERMS AND CONDITIONS OF LOW TENSION TARIFF

1. Rural Areas mean feeder declared by the Distribution Licensee for receiving supply as per rural

discipline under load regulatory measures.

2. Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paisa shall be ignored and 50 paisa

upwards shall be rounded off to next Rupee.

3. Billing Demand: In case of demand based tariff, the billing demand for the month shall be the actual

maximum kVA demand of the consumer during the month or 90% of the contract demand, whichever is higher. The

billing demand shall be rounded off to the next higher integer number.

4. Fixed charges billing: All consumers to whom fixed charges are applicable are required to pay fixed charges in

each month irrespective of whether any energy is consumed or not. Fractional load for the purposes of billing

of fixed charges shall be rounded off to next higher integer unless specified otherwise. The

connected/sanctioned load for un-metered agricultural consumers will be rounded to next higher integer for the

purpose of the assessment of energy.

5. Method of billing of minimum consumption:

A. For metered agricultural consumers and other than agricultural consumers horticulture activity

- LV 5.1 and LV 5.2: The consumer shall be billed minimum monthly consumption (kWh) specified

for his category for the month in which his actual consumption is less than prescribed minimum

consumption.

B. For other consumers where applicable :

a. The consumer shall be billed one twelfth of guaranteed annual minimum consumption

(kWh) specified for his category each month in case the actual consumption is less than above

mentioned minimum consumption.

b. During the month in which actual cumulative consumption equals or is greater than the annual

minimum guaranteed consumption, no further billing of monthly minimum consumption shall be done in

subsequent months of the financial year and only actual recorded consumption shall be billed.

c. Tariff minimum consumption shall be adjusted in the month in which cumulative actual or billed

monthly consumption exceeds cumulative monthly prorated minimum annual guaranteed consumption. If

actual cumulative consumption does not get fully adjusted in that month, adjustment shall continue to

be provided in subsequent months of the financial year. The following example illustrates the

procedure for monthly billing of consumption where prorated monthly minimum consumption is 100

kWh based on annual consumption of 1200 kWh.

Month Actual

cumulative

consumption

(kWh)

Cumulative

minimum

consumption

(kWh)

Higher of 2

and 3

(kWh)

Already

billed in the

year (kWh)

To be billed

in the month

= (4-5)

(kWh)

1 2 3 4 5 6

April 95 100 100 0 100


143

May 215 200 215 100 115

June 315 300 315 215 100

July 395 400 400 315 85

Aug 530 500 530 400 130

Sept 650 600 650 530 120

Oct 725 700 725 650 75

Nov 805 800 805 725 80

Dec 945 900 945 805 140

Jan 1045 1000 1045 945 100

Feb 1135 1100 1135 1045 90

March 1195 1200 1200 1135 65

6. Additional Charge for Excess connected load or Excess Demand: Shall be billed as per following procedure:

a) Consumers opting for demand based tariff: The consumers availing supply at demand based tariff shall

restrict their actual maximum demand within the contract demand. However, in case the actual maximum

demand recorded in any month exceeds the contract demand, the tariff in this schedule shall apply to the

extent of the contract demand only. The consumer shall be charged for demand recorded in excess of

contract demand (termed as Excess Demand) and consumption corresponding thereto at the following

rates:-

i. Energy charges for Excess Demand: The consumer shall pay charges @ 1.3 times the tariff for

energy charges for consumption corresponding to excess demand in case the maximum demand

recorded exceeds the contract demand.

ii. Fixed Charges for Excess Demand: These charges shall be billed as per following:

1. Fixed Charges for Excess Demand when the recorded maximum demand is up to 115%

of the contract demand: Fixed Charges for Excess Demand over and above the contract demand

shall be charged at 1.3 times the normal rate of Fixed Charges.

2. Fixed Charges for Excess Demand when the recorded maximum demand exceeds 115%

of contract demand: In addition to Fixed Charges in 1 above, recorded demand over and above

15 % of the contract demand shall be charged at 2 times the normal rate of Fixed Charges.

b) Consumers opting for connected load based tariff: The consumers availing supply at connected load

based tariff shall restrict their actual connected load within the sanctioned load. However, in case the

actual connected load in any month exceeds the sanctioned load, the tariff in this schedule shall apply

to the extent of the sanctioned load only. The consumer shall be charged for the connected load found in

excess of the sanctioned load (termed as Excess Load) and consumption corresponding thereto at

the following rates:-

i. Energy charges for Excess Load: The consumer shall pay charges @ 1.3 times the tariff for

energy charges for consumption corresponding to excess load in case the connected load

found at the consumer’s premises exceeds the sanctioned load for the entire period for

which such use of excess load has taken place and if, however, the period during which

such use of excess load has taken place cannot be ascertained, such period shall be limited

to a period of twelve months immediately preceding the date of inspection.

ii. Fixed Charges for Excess load: These charges shall be billed as per following, for the


144

period for which the use of excess load is determined in condition i) above:

1. Fixed Charges for Excess load when the connected load is found up to 115% of the

sanctioned load: Fixed Charges for Excess load over and above sanctioned load shall

be charged at 1.3 times the normal rate of Fixed Charges.

2. Fixed Charges for Excess load when the connected load exceeds 115% of sanctioned

load: In addition to Fixed Charges in 1 above, connected load found over and above 15

% of the sanctioned load shall be charged at 2 times the normal rate of Fixed Charges.

3. c) The above billing for Excess connected Load or Excess Demand, applicable to

consumers is without prejudice to the Distribution Licensee’s right to ask for revision of

agreement and other such rights that are provided under the Regulations notified by

the Commission or under any other law.

The maximum demand of the consumer in each month shall be reckoned as four times the largest amount of

kilovoltampere hours delivered at the point of supply of the consumer during any continuous fifteen minutes

in that month.

7. Other Terms and Conditions:

(a) For advance payment made before commencement of consumption period for which bill is

prepared, a rebate of 1 % per month on the amount (excluding security deposit) which remains

with the Distribution Licensee at the end of calendar month shall be credited to the account of

the consumer after adjusting any amount payable to the Distribution Licensee.

(b) Incentive for prompt payment: An incentive for prompt payment @0.25% of the bill amount

(excluding arrears, security deposit, meter rent and Government levies viz. Electricity Duty and

Cess etc.) shall be given in case the payment is made at least 7 days in advance of the due date of

payment where the current month billing amount is equal to or greater than Rs. One Lakh. The

consumers in arrears shall not be entitled for this incentive.

(c) The Sanctioned Load or Connected Load or Contract Demand should not exceed 112.5 kW / 150

HP except where a higher limit is specified or the category is exempted from the ceiling on

connected load. If the consumer exceeds his connected load or contract demand beyond this

ceiling on more than two occasions in two billing months during the tariff period, the

Distribution Licensee may insist on the consumer to avail HT supply.

(d) Metering Charges shall be billed as per schedule of Metering and Other Charges as prescribed in

MPERC (Recovery of Expenses and other Charges for providing Electric Line or Plant used for

the purpose of giving supply), Regulations (Revision-I), 2009. Part of a month will be reckoned

as full month for purpose of billing.

(e) In case the cheque presented by the consumer is dishonoured, without prejudice to Distribution

Licensee’s rights to take recourse to such other action as may be available under the relevant law,

a service charge of Rs. 150 per cheque shall be levied in addition to delayed payment surcharge

(f) Other charges as stated in Schedule of Miscellaneous Charges shall also be applicable.

(g) Welding Surcharge is applicable to installations with welding transformers, where the connected

load of welding transformers exceeds 25% of the total connected load and where suitable capacitors

of prescribed capacity have not been installed to ensure power factor of not less than 0.8 (80%)


145

lagging. Welding Surcharge of 75 (seventy five) paisa per unit shall be levied for the consumption of

the entire installation during the month. However, no welding surcharge shall be levied when

recorded power factor is 0.8 or more

(h) For purposes of computing the connected load in kW of the welding transformers, a power factor of

0.6 (60%) shall be applied to the maximum current or kVA rating of such welding transformers.

(i) Existing LT power consumer shall ensure that LT capacitor of proper rating is provided. In this

regard, the Madhya Pradesh Electricity Supply Code, 2013, as amended from time to time may

be referred for guidance. It shall be the responsibility of the consumer to ensure that overall

average power factor during any month is not less than 0.8 (80%) failing which the consumer shall

be liable to pay low power factor surcharge on the entire billed amount against energy charges

during the month at the rates given below:

1. For the consumer whose meter is capable of recording average power factor:

a. Surcharge @ 1 % of energy charges for every 1% fall in power factor below 80% up to

75 %.

b. Surcharge of 5% plus 1.25% of energy charges for every 1% fall in power factor

below 75% up to 70%.

The maximum limit of surcharge will be 10 % of the energy charges billed during the month.

2. For LT consumer having meter not capable of recording average power factor: The

consumer shall ensure that LT capacitors of proper rating are provided and are in good

working condition. In this regard, the Madhya Pradesh Electricity Supply Code, 2013, as

amended from time to time may be referred for guidance. In case of failure to meet the

above criteria, the consumer would be levied a low power factor surcharge of 10% on the

entire billed amount against energy charges during the month and would be continued

to be billed till such time the consumer meets the above criteria .

(j) Levy of welding / power factor surcharge as indicated hereinabove shall be without prejudice to the

rights of the Licensee to disconnect the consumer’s installation, if steps are not taken to

improve the power factor by installing suitable shunt capacitors.

(k) Load Factor incentive: Following slabs of incentive shall be allowed for consumers billed under

demand based tariff:

Load factor Concession in energy charges

For load factor above 25% and up to 30 % load

factor on contract demand

12 paise per unit concession on the normal energy charges for

all energy consumption over and above 25% load factor during

the billing month

For load factor above 30% and up to 40 % load

factor on contract demand

In addition to load factor concession available up to 30% load

factor , concession at the rate of 24 paise per unit on the

normal energy charges for all energy consumption over

and above 30 % load factor during the billing month


146

For load factor above 40% load factor on contract

demand

In addition to load factor concession available up to 40% load

factor, concession at the rate of 36 paise per unit on the

normal energy charges for all energy consumption over

and above 40% load factor during the billing month

The load factor shall be calculated as per the following formula:

Monthly consumption X 100

Load factor (%) = ----------------------------------------------------------------------------------------

No. of hours in the billing month X Demand X PF

i. Monthly consumption shall be units (kWh) consumed in the month excluding those received

from sources other than Licensee.

ii. No. of Hours in billing month shall exclude period of scheduled outages in hours.

iii. Demand shall be maximum demand recorded or contract demand whichever is higher.

iv. Power factor shall be 0.8 or actual monthly power factor whichever is higher

Note: The Load Factor (%) shall be rounded off to the nearest lower integer. The billing month shall be the

period in number of days between the two consecutive dates of meter readings taken for the purpose of

billing to the consumer for the period under consideration as a month.

(l) In case of any dispute on applicability of tariff on a particular LT category, the decision of the

Commission shall be final.

(m) The tariff does not include any tax, cess or duty, etc. on electrical energy that may be payable at any

time in accordance with any law then in force. Such charges, if any, shall also be payable by the

consumer in addition to the tariff charges and applicable miscellaneous charges.

(n) Delayed payment Surcharge for all categories: Surcharge of Rs. 5 for a total amount up to Rs.500 per

month and a minimum of Rs. 10 or 1% of the bill on daily basis (capped at monthly maximum 10%

of the net bill amount ); whichever is higher for bill amount over Rs 500 per month or part thereof on

the amount outstanding (including arrears) will be payable if the bills are not paid up to due date. The

part of a month will be reckoned as full month for the purpose of calculation of delayed payment

surcharge. The delayed payment surcharge will not be levied for the period after supply to the

consumer is permanently disconnected. This provision shall not be applicable to that category

where the levy of delayed payment surcharge has been prescribed separately

(o) In case of conversion of LT connection into HT connection, it is mandatory on the part of both the

consumer and the licensee to get the HT agreement executed before availing supply at HT.

(p) Power Factor Incentive:

Power factor incentive is levied only for those consumers whose inductive connected load is 3HP or

more. If the average monthly power factor of the consumer is equal to or more than 85%, incentive shall

be payable as follows:

Power Factor Percentage incentive payable on billed energy charges

Above 85% up to 86% 0.5

Above 86% up to 87% 1.0

Above 87% up to 88% 1.5


147

Above 88% up to 89% 2.0

Above 89% up to 90% 2.5

Above 90% up to 91% 3.0

Above 91% up to 92% 3.5

Above 92% up to 93% 4.0

Above 93% up to 94% 4.5

Above 94% up to 95% 5.0

Above 95% up to 96% 6.0

Above 96% up to 97% 7.0

Above 97% up to 98% 8.0

Above 98% up to 99% 9.0

Above 99% 10.0

For this purpose, the “average monthly power factor” is defined as the ratio in percentage of total

kilowatthours to the total kilovoltampere hours recorded during the month.

(q) Use of mix loads in one connection: Unless otherwise permitted specifically in the tariff category,

the consumer requesting for use of mix loads for different purposes shall be billed for the

purpose for which the tariff is higher.

(r) Consumers in the notified Industrial Growth Centres area receiving supply under urban discipline

shall be billed urban tariff.

(s) No change in the tariff or the tariff structure including minimum charges for any category of consumer

is permitted except with prior written permission from the Commission. Any action taken

without such written permission of the Commission shall be treated as null and void and

shall also be liable for action under relevant provisions of the Electricity Act, 2003.

(t) All conditions prescribed herein shall be applicable to the consumer notwithstanding if

any contrary provisions exist in the agreement entered into by the consumer with the licensee.


148

Additional conditions for Temporary Supply at LT:

(a) Temporary supply cannot be demanded by a prospective/ existing consumer as a matter of right but will normally be

arranged by the Distribution Licensee when a requisition giving due notice is made. The temporary additional

supply to an existing consumer also shall be treated as a separate service and charged subject to following

conditions. However service under Tatkal Scheme shall be made available within 24 hours according to the

charges specified in the order of the Commission regarding Schedule of Miscellaneous Charges.

(b) Fixed Charge and Energy Charge for temporary supply shall be billed at 1.3 times the normal charges as

applicable to relevant category if not specified otherwise specifically.

(c) Estimated bill amount is payable in advance before serving the temporary connection subject to

replenishment from time to time and adjustment as per final bill after disconnection. No interest shall be given to

consumers for this advance payment.

(d) The Sanctioned load or connected load shall not exceed 75 kW / 100 HP.

(e) The month for the purpose of billing of charges for temporary supply shall mean 30 days from the date of

connection. Any period less than 30 days shall be treated as full month for the purpose of billing.

(f) Connection and disconnection charges and other miscellaneous charges shall be paid separately as may be

specified in the Schedule of Miscellaneous Charges.

(g) Load factor concession shall not be allowed on the consumption for temporary connection.

(h) Power factor incentive/penalty shall be applicable at the same rate as applicable for permanent connection


149

TARIFF SCHEDULES FOR HIGH TENSION CONSUMERS

Tariff Schedules Page No

HV1- Railway Traction 148-149

HV2-Coal Mines 150

HV3- Industrial, Non-Industrial and Shopping Malls 151-153

HV4- Seasonal and Non-Seasonal 154

HV5- Irrigation, Public Water Works and Other than

Agricultural

155-156

HV6- Bulk Residential Users 157-158

General Terms and Conditions of High Tension Tariff 159-165


150

Tariff Schedule-- HV-1 -> RAILWAY TRACTION

Applicability:

This Tariff shall apply to the Railways for Traction loads only.

Tariff:

Category of

consumer

Monthly Fixed

Charge (Rs. per

kVA of billing

demand per month)

Energy

Charge

(paise / unit)

Monthly Fixed

Charge (Rs. per

kVA of billing

demand per month)

Energy

Charge (paise /

unit) for LF

<50%

Energy Charge

(paise / unit) for

LF>50%

Existing Proposed

Railway Traction

on 132 kV / 220

kV

265 500 300 600 550

Specific Terms and Conditions:

(a) In order to give impetus to electrification of Railway network in the State, a rebate of 10% in energy

charges for new Railway traction projects shall be allowed for a period of five years from the date of

connection for such new projects for which agreements for availing supply from licensee are finalized

during 2015-16. The rebate provided in earlier Orders shall remain in force at the rate and for the duration as

mentioned in those Tariff Orders.

(b) The dedicated feeder maintenance charges shall not be applicable.

(c) Guaranteed Annual Minimum Consumption shall be 1500 units (kWh) per kVA of Contract Demand. The

method of billing of minimum consumption shall be as given in General Terms and Conditions of High Tension

Tariff.

(d) Power Factor Penalty:

i. If the average monthly power factor of the consumer falls below 90 percent, penalty will be levied at the rate

of one percent of total energy charges for the month for each one percent fall in the average monthly power

factor below 90 percent. Power factor penalty shall be levied when both lead/ lag power factor is

recorded.

If the average monthly power factor of the consumer falls below 85 percent, the consumer shall be levied a

penalty of 5% (five percent) plus @ 2% (two percent) for each one percent fall in his average monthly

power factor below 85 percent, on the total amount of bill under the head of “Energy Charge.

This penalty shall be subject to the condition that overall penalty on account of low power factor does not

exceed 35%.

iii. For this purpose, the “average monthly power factor” is defined as the ratio expressed in percentage of

total kilowatthours recorded to the total kilovoltampere hours recorded during the billing month.

This ratio (%) shall be rounded off to the nearest integer figure and the fraction of 0.5 or above will be

rounded to next higher integer and the fraction of less than 0.5 shall be ignored.


151

iv. Notwithstanding what has been stated above, if the average power factor of a new connection of the

consumer is found to be less than 90% in any month during the first 6 (six) months from the date of

connection, the consumer shall be entitled to a maximum period of six months to improve it to not less

than 90% subject to following conditions:

This period of six months shall be reckoned from the month in which the

average power factor was found for the first time to be less than 90%.

In all cases, the consumer will be billed penal charges for low power factor, but in case the

consumer maintains the average power factor in subsequent three months (thus in all four months)

to not less than 90%, the charges on account of low power factor billed during the said six months

period, shall be withdrawn and credited in next monthly bills.

The facility, as mentioned herein, shall be available not more than once to new consumer whose

average power factor is less than 90% at any time during 6 months from the date of connection.

Thereafter, the charges on account of low average power factor, if found less than 90%, shall be

payable as by any other consumer.

(e) Emergency feed extension: Provided that if as a result of the emergency in the traction substation or in the

transmission line supplying load or part thereof is transferred to an adjacent traction substation, the M.D. for

the month for that adjacent traction substation shall be as the average of M.D. for previous three months during

which no emergency had occurred.

(f) Other terms and conditions shall be as mentioned in the General Terms and Conditions of High Tension Tariff.


152

Tariff Schedule – HV - 2 -> COAL MINES

Applicability:

This Tariff shall apply to the Coal Mines for power, ventilation, lights, fans, coolers, etc. which shall mean and include all

energy consumed for coal mines and lighting in the offices, stores, canteen, compound lighting etc. and the consumption

for residential use therein.

Sub

category


(Rs./kVA of billing

demand per month)

Energy Charge for

consumption up to

50% load factor

(Paise/unit)

Energy Charge for

consumption in excess of

50% load factor

(paise/unit)

Coal

Mines Existing Proposed Existing Proposed Existing Proposed

11 kV

supply 505 605 545 645 465 565

33 kV

supply 515 610 525 625 445 545

132 kV

supply 525 620 515 595 435 515

220 kV

supply 535 630 505 575 425 495


a. Guaranteed Minimum Consumption shall be on the following basis :

Supply Voltage Guaranteed annual

minimum consumption in units

(kWh) per kVA of contract

demand

For supply at 220 / 132 kV 1620

For supply at 33 / 11 kV 1200

Note: The method of billing of minimum consumption shall be as given in General Terms and Conditions of High

Tension Tariff.

b. Load Factor Incentive: The consumer shall be eligible for Load Factor incentive on energy charges as per the

scheme given in General Terms and Conditions of High Tension Tariff.

c. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and

Conditions of High Tension Tariff.

Other terms and conditions shall be as specified under General Terms and Conditions of High Tension Tariff.


153

Tariff Schedule – HV - 3 -> INDUSTRIAL, NON-INDUSTRIAL AND SHOPPING MALLS

Applicability:

The tariff HV-3.1(Industrial) shall apply to all HT industrial consumers including mines (other than coal mines) for

power, light and fan etc. which shall mean and include all energy consumed for factory and lighting in the offices,

main factory building, stores, canteen, residential colonies of industries, compound lighting, common and ancillary

facilities such as Banks, General purpose shops, Water supply, Sewage pumps, Police Stations etc. in the premises of

the industrial units and Dairy units where milk is processed (other than chilling, pasteurization etc.) to produce other

end products of milk.

The tariff HV-3.2 (Non Industrial) shall apply to establishments like Railway Stations, Offices, Hotels, Hospitals,

Institutions etc. (excluding group of consumers) having mixed load for power, light and fan etc. which shall mean and

include all energy consumed for lighting in the offices, stores, canteen, compound lighting etc. This shall also cover all

other categories of consumers, defined in LT non-domestic category subject to the condition that the HT consumer

shall not redistribute/sub-let the energy in any way to other person.

The tariff HV-3.3 (Shopping malls) shall apply to establishments of shopping malls having group of non-industrial

consumers subject to the specific terms and conditions specified in (e) of this schedule.

Shopping Mall shall be a multi-storeyed shopping centre in an urban area having a system of enclosed walkways

with collection of independent retail stores, services and parking areas constructed and maintained by a management

firm/ developer as a unit.

The tariff HV-3.4 (Power intensive industries) shall apply to Mini Steel Plants (MSP), MSP with rolling mills/ sponge

iron plants in the same premises, electro chemical/ electro thermal industry, Ferro alloy industry which shall mean and

include all energy consumed for factory and lighting in the offices, main factory building, stores, canteen, residential

colonies of industries, compound lighting etc.

S.

No.

Sub-

Category of

consumer

Monthly

Fixed

Charge

(Rs/KVA) of

billing

demand per

month

Energy

Charge for

consumption

on up to

50% load

factor

(paise/unit)

Energy

Charge for

consumption

in excess

50% load

factor

(paise/unit)

Monthly

Fixed

Charge

(Rs/KVA) of

billing

demand per

month

Energy

Charge for

consumption

on up to

50% load

factor

(paise/unit)

Energy

Charge for

consumption

in excess

50% load

factor

(paise/unit)

Existing Proposed

3.1 Industrial

11 kV supply 235 520 460 280 620 560

33 kV supply 380 510 410 450 600 500

132 kV supply 480 475 395 575 550 470

220/400 kV

supply 510 455 385 610 525 455

3.2 Non-

Industrial

11 kV supply 200 550 475 250 670 595

33 kV supply 310 525 460 370 630 565

132 kV supply 435 490 425 520 580 515

3.3 Shopping

Malls

11 kV supply 195 550 475 230 660 585


154

S.

No.

Sub-

Category of

consumer

Monthly

Fixed

Charge

(Rs/KVA) of

billing

demand per

month

Energy

Charge for

consumption

on up to

50% load

factor

(paise/unit)

Energy

Charge for

consumption

in excess

50% load

factor

(paise/unit)

Monthly

Fixed

Charge

(Rs/KVA) of

billing

demand per

month

Energy

Charge for

consumption

on up to

50% load

factor

(paise/unit)

Energy

Charge for

consumption

in excess

50% load

factor

(paise/unit)

33 kV supply 285 530 465 340 640 575

132 kV supply 405 495 425 485 590 520

3.4

Power

intensive

industries*

33 kV supply 435 405 405 525 580 580

132 kV supply 560 385 385 675 540 540

Category HV 3.4 shall not be entitled to load factor incentive. Further energy charges for this category shall be same for

entire consumption irrespective of load factor.


1. Guaranteed Minimum Consumption for all the above categories shall be on following basis :

Supply Voltage Sub- category Guaranteed annual minimum

consumption in units (kWh) per kVA

of contract demand

For supply at

220/132 kV

Rolling Mills 1200

Educational institutions 720

Others 1800

For supply at 33 /

11 kV

Educational institutions 600

Contract demand up to 100 kVA 600

Others 1200

Note: The method of billing of minimum consumption shall be as given in General Terms and Conditions of

High Tension Tariff.

2. Load Factor Incentive: The consumer shall be eligible for Load Factor incentive on energy charges as per the

scheme given in General Terms and Conditions of High Tension Tariff. However consumers under category

HV 3.4 shall not be entitled to load factor incentive.

3. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and


4. Additional specific terms and conditions for shopping mall

(i) Individual end user shall not be levied a rate which is exceeding non-domestic- commercial tariff (LV 2.2) in

case of LT connection and HT non-industrial tariff (HV 3.2) in case of HT connection, as determined by the

Commission.

(ii) All end-users shall enter into a tripartite agreement with the Management Firm /developer of the shopping mall

and the licensee for availing supply of electricity in the shopping mall in order to get the benefit of the tariff under

this category.

5. Other terms and conditions shall be as specified under General Terms and conditions of high

tension tariff.


155

Tariff Schedule – HV - 4 -> SEASONAL and NON SEASONAL

Applicability:

This tariff shall be applicable to such seasonal industries / consumers requiring energy for the production

purposes for maximum continuous one hundred eighty days and for a minimum period of three months. If the

declared season/off-season spreads over two tariff periods, then the tariff for the respective period shall

be applicable.

The licensee shall allow this tariff to any industry having seasonal use only.

This tariff shall also be applicable to mini/micro and small hydel plants to meet the essential requirement

of power to maintain the plants without any ceiling as to the period for which supply shall be taken.

Category of

consumers


(Rs./kVA of billing demand

per month)

Energy Charge for

consumption up to 50%

load factor (paise / unit)

Energy Charge for

consumption in excess of

50% load factor (paise

per unit)

During Season

Existing Proposed Existing Proposed Existing Proposed

11 kV supply 255 285 500 600 435 535

33 kV supply 285 310 490 580 420 510

During Off-Season

11 kV supply

Rs. 255 on

10% of

contract

demand or

actual

recorded

demand

during the

season

whichever is

higher

Rs. 285 on

10% of

contract

demand or

actual

recorded

demand

during the

season

whichever is

higher

600 i.e.

120% of

seasonal

energy

charge

720 i.e.

120% of

seasonal

energy

charge

Not

applicable

Not

applicable

33 kV supply

Rs. 285 on

10% of

contract

demand or

actual

recorded

demand

during the

season

whichever is

higher

Rs. 310 on

10% of

contract

demand or

actual

recorded

demand

during the

season

whichever is

higher

588 i.e.

120% of

seasonal

energy

charge

696 i.e.

120% of

seasonal

energy

charge

Not

applicable

Not

applicable


1. Guaranteed Annual Minimum Consumption shall be 900 units (kWh) per kVA of contract demand. The method

of billing of minimum consumption shall be as given in General Terms and Conditions of High Tension Tariff

2. Load Factor Incentive: The consumer shall be eligible for Load Factor incentive on energy charges as per the

scheme given in General Terms and Conditions of High Tension Tariff.

3. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and Conditions of High

Tension Tariff.


156

4. The consumer has to declare months of season and off season for the tariff year 2015-16 within 60 days of issue

of tariff order and inform the same to the licensee. If the consumer has already informed the Licensee of his

season/offseason months during this financial year prior to issue of this order, same shall be accepted and shall be valid

for this Tariff Order.

5. The seasonal period once declared by the consumer cannot be changed during the year.

6. This tariff schedule is not applicable to composite units having seasonal and other category loads.

7. The consumer will be required to restrict his monthly off season consumption to15% of highest of the average

monthly consumption of the preceding three seasons. In case this limit is exceeded in any off season month, the

consumer will be billed under HV-3.1 Industrial Schedule for the whole tariff year.

8. The consumer will be required to restrict his maximum demand during off season to 30 % of the contract demand.

In case the maximum demand recorded in any month during the declared off- season exceeds this limit, the

consumer will be billed under HV-3.1 Industrial Schedule for the whole year.

9. Other terms and conditions shall be as per the General Terms and Conditions of High Tension Tariff.


157

Tariff Schedule – HV - 5 -> IRRIGATION, PUBLIC WATER WORKS AND OTHER THAN AGRICULTURAL

Applicability:

The Tariff Category HV-5.1 shall apply to supply of power to lift irrigation schemes, group irrigation, Public

Utility Water Supply schemes, sewage treatment plants /sewage pumping plants and for energy used in lighting

pump house.

Note: Private water supply scheme, water supply schemes run by institutions for their own

use/employees/townships etc. will not fall in this category but billed under the appropriate tariff

category to which such institution belongs. In case water supply is being used for two or more

different purposes then the highest tariff shall be applicable.

The tariff category HV-5.2 shall apply to supply of power to other than agriculture pump connections i.e. the

connection for hatcheries, fisheries ponds, poultry farms, cattle breeding farms, grasslands, vegetables/

fruits/ floriculture/ mushroom growing units etc. and dairy ( for those dairy units where only extraction of milk

and its processing such as chilling, pasteurization etc. is done). However, in units where milk is processed

to produce other end products of milk, billing shall be done under HV-3.1 (Industrial) category.

Tariff:

No. Sub-

Category

Monthly Fixed Charge (Rs.

KVA of billing demand per

month)

Energy Charge (paise per

unit)

5.1 Public Water Works, Group Irrigation and Lift Irrigation Schemes


11 kV supply 170 250 400 560

33 kV supply 190 275 380 525

132 kV

supply 210 300 360 500

5.2 Other than agricultural use

11 kV supply 190 275 405 570

33 kV supply 210 300 385 540

132 kV

supply 230 325 370 520


158


(a) Guaranteed Annual Minimum Consumption shall be 720 units (kWh) per kVA of contract demand.

The method of billing of minimum consumption shall be as given in General Terms and Conditions of


(b) Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and


(c) Incentive for adopting Demand Side Management

An incentive equal to 5 % energy charges shall be given on installation and use of energy saving

devices (such as ISI energy efficient motors for pump sets). Incentive will only be admissible if

full bill is paid within due dates failing which all consumed units will be charged at normal rates as

the case may be. Such incentive will be admissible from the month following the month in which energy

saving devices are put to use and its verification by a person authorized by the licensee. The incentive

will continue to be allowed till such time these energy saving devices remain in service. The

Distribution Licensee is required to arrange wide publicity for above incentive. The Distribution Licensee

is required to place quarterly information regarding incentives provided on its web site.

(d) Other terms and conditions shall be per the General Terms and Conditions of High Tension Tariff.


159

Tariff Schedule – HV – 6 BULK RESIDENTIAL USERS

Applicability:

The tariff category HV-6.1 is applicable for supply to industrial or any other township (e.g. that of University

or academic institutions, hospitals, MES and Border villages etc.) for domestic purpose only such as lighting,

fans, heating etc. provided that the connected load for essential common facilities such as Non-domestic

supply in residential area, street lighting shall be within the limits specified hereunder:-

(i) Water supply and Sewage pumping, Hospital - No limit

(ii) Non-domestic/Commercial and other General purpose put together - 20 % of total connected

load.

The tariff category HV-6.2 is applicable for supply to Registered Cooperative Group Housing Societies as per

the Ministry of Power’s notification no. S.O.798 (E) dated 9th June, 2005 and also to other Registered Group

Housing Societies and individual domestic user. The Terms and Conditions to this category of consumers shall be

applicable as per relevant provisions of the Madhya Pradesh Electricity Supply Code, 2013 as amended from

time to time. This tariff category shall also be applicable to residents welfare societies/associations and residential

complexes where supply is used for residential purposes subject to following restrictions such as lighting, fans,

heating etc. provided that the connected load for essential common facilities such as Non-domestic supply in

residential area, street lighting shall be within the limits specified hereunder:-

(i) Water supply and Sewage pumping, Hospital - No limit

(ii) Non-domestic/Commercial and other General purpose put together - 20 % of total connected

load.

Tariff:

S.

No.

Category

of

consumers

Monthly

Fixed

Charge

(Rs/KVA)

of Billing

demand

per month

Energy

Charge for

Consumption

up to 50%

load factor

(paise/unit)

Energy

Charge for

Consumption

in excess of

50% load

factor

(paise/unit)

Monthly

Fixed

Charge

(Rs/KVA)

of Billing

demand

per month

Energy

Charge for

Consumption

up to 50%

load factor

(paise/unit)

Energy

Charge for

Consumption

in excess of

50% load

factor

(paise/unit)

Existing Proposed

1 For Tariff Sub-Category 6.1

11 kV

supply 215 465 410 305 600 545

33 kV

supply 230 440 390 325 575 525

132 kV

supply 245 425 375 345 560 510

2 For Tariff Sub-Category 6.2

11 kV

supply 145 475 420 205 620 565

33 kV

supply 150 465 410 215 610 555

132 kV

supply 155 450 395 220 590 535


160


(a) Guaranteed Annual Minimum Consumption shall be 780 units (kWh) per kVA of contract demand.

The method of billing of minimum consumption shall be as given in General Terms and Conditions of


(b) Load Factor Incentive: The consumer shall be eligible for Load Factor incentive on energy charges

as per the scheme given in General Terms and Conditions of High Tension Tariff.

(c) All individual end-users shall enter into a tripartite agreement with the Management of the

Group Housing Society and the licensee for availing supply of electricity in the Society in order to get

the benefit of the tariff under this category. The individual end user shall not be levied a rate

exceeding the tariff applicable to the corresponding LT category.

(d) Other terms and conditions shall be as specified under General Terms and Conditions of High

Tension Tariff.


161

GENERAL TERMS AND CONDITIONS OF HIGH TENSION TARIFF

The following terms and conditions shall be applicable to all HT consumer categories subject to specific terms and

conditions for that category as mentioned in the tariff schedule of respective category:

i. The contract demand shall be expressed in whole number only.

ii. Character of Service: The character of service shall be as per Madhya Pradesh Electricity Supply Code, 2013 as

amended from time to time.

iii. Point of Supply:

a. The power will be supplied to the consumer ordinarily at a single point for the entire premises.

b. In case of Railway Traction, the supply at each sub-station shall be separately metered and charged.

c. In case of coal mines, the power will be supplied ordinarily at a single point for the entire premises. The

power may, however, be supplied, on the request of the consumer, at more than one point subject to

technical feasibility. In such cases, metering and billing will be done for each point of supply separately.

iv. Determination of Demand: The maximum demand of the supply in each month shall be four times the largest

number of kilovolt ampere hours delivered at the point of supply during any continuous 15 minutes during the month

as per sliding window principle of measurement of demand.

Billing demand: The billing demand for the month shall be the actual maximum kVA demand of the consumer

during the month or 90% of the contract demand, whichever is higher. The billing demand shall be rounded off to the

nearest integer number i.e. the fraction of 0.5 or above will be rounded off to next integer figure and the fraction of

less than 0.5 shall be ignored.

Tariff minimum consumption shall be billed as follows:

a. The consumer shall be billed for guaranteed annual minimum consumption (kWh) based on number of

units per kVA of contract demand specified for his category, irrespective of whether any energy is

consumed or not during the year.

b. The consumer shall be billed one twelfth of guaranteed annual minimum consumption (kWh) specified for

his category each month in case the actual consumption is less than above mentioned minimum

consumption.

c. During the month in which actual cumulative consumption equals or greater than the annual minimum

guaranteed consumption, no further billing of monthly minimum consumption shall be done in subsequent

months of the financial year.

d. Tariff minimum consumption shall be adjusted in the month in which cumulative actual or billed monthly

consumption exceeds cumulative monthly prorated minimum annual guaranteed consumption. If actual

cumulative consumption does not get fully adjusted in that month, adjustment shall continue to be provided

in subsequent months of the financial year. The following example illustrates the procedure for monthly

billing of consumption where prorated monthly minimum consumption is 100 kWh based on annual

consumption of 1200 kWh.

Month

Actual cumulative

consumption

Cumulative minimum

consumption

Higher of 2

and 3

Already billed in the

year

To be billed in the month

= (4-5)

(kWH) (kWH) (kWH) (kWH) (kWH)

1 2 3 4 5 6

April 95 100 100 0 100

May 215 200 215 100 115

June 315 300 315 215 100


162

Month

Actual cumulative

consumption

Cumulative minimum

consumption

Higher of 2

and 3

Already billed in the

year

To be billed in the month

= (4-5)

(kWH) (kWH) (kWH) (kWH) (kWH)

July 395 400 400 315 85

Aug 530 500 530 400 130

Sept 650 600 650 530 120

Oct 725 700 725 650 75

Nov 805 800 805 725 80

Dec 945 900 945 805 140

Jan 1045 1000 1045 945 100

Feb 1135 1100 1135 1045 90

March 1195 1200 1200 1135 65

v. Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paise shall be ignored and 50 paise

upwards shall be rounded off to next Rupee.

Incentive/ Rebate / penalties

vi. Power Factor Incentive: Power factor incentive shall be payable as follows:

Power Factor Percentage incentive payable on billed energy charges

Above 95% and up to 96% 1.0 ( one percent)

Above 96% and up to 97% 2.0 ( two percent)

Above 97% and up to 98% 3.0 ( three percent)

Above 98 % up to 99% 5.0 (five percent)

Above 99 % 7.0 (seven percent)

vii. Load factor calculation

a. The load factor shall be calculated as per the following formula:

Monthly consumption X 100

Load factor (%) = ----------------------------------------------------------------

No. of hours in the billing month X Demand X PF

Monthly consumption shall be units consumed in the month excluding those received from sources other

than Licensee

No of Hours in billing month shall exclude period of scheduled outages in hours.

Demand shall be maximum demand recorded or contract demand whichever is higher

Power factor shall be 0.9 or actual average monthly power factor whichever is higher

Note: The load factor (%) shall be rounded off to the nearest lower integer. In case the consumer is getting

power through open access, units set off from other sources, the net energy (after deducting units set off

from other sources, from the consumed units) billed to consumer shall only be taken for the purpose of

working out load factor. The billing month shall be the period in number of days between the two

consecutive dates of meter readings taken for the purpose of billing to the consumer.


163

viii. For advance payment made before commencement of consumption period for which bill is prepared, an incentive

of 1 % per month on the amount which remains with the licensee at the end of calendar month (excluding security

deposit) shall be credited to the account of the consumer after adjusting any amount payable to the licensee.

ix. An incentive for prompt payment @0.25% of bill amount (excluding arrears, security deposit, meter rent and

Government levies viz. Electricity Duty and Cess ) shall be given in case the payment is made at least 7 days in

advance of the due date of payment where the current month billing amount is equal to or greater than Rs. One Lakh.

The consumers in arrears shall not be entitled for this incentive.

x. Time of Day Surcharge / Rebate: This scheme is applicable to the categories of consumers where it is specified.

This is applicable for different periods of the day i.e. normal period, peak load and off-peak load period. The

surcharge / rebate on energy charges according to the period of consumption shall be as per following table:

S. No. Peak / Off-peak Period Surcharge / Rebate on energy charges on energy

consumed during the corresponding period

1. Evening peak load period (6PM to 10 PM) 7.5% of Normal rate of Energy Charge as Surcharge

2. Off peak load period (10 PM to 6 AM next day) 15% of Normal rate of Energy Charge as Surcharge

Note: Fixed charges shall always be billed at normal rates i.e. ToD Surcharge / Rebate shall not be applied on Fixed

Charges

xi. Power Factor Penalty ( For consumers other than Railway Traction HV-1)

a. If the average monthly power factor of the consumer falls below 90 percent, the consumer shall be levied a

penalty @ 1% (one percent), for each one percent fall in his average monthly power factor below 90

percent, on total amount of bill under the head of “Energy Charges”.

b. If the average monthly power factor of the consumer falls below 85 percent, the consumer shall be levied a

penalty of 5% (five percent) plus @ 2% (two percent) for each one percent fall in his average monthly

power factor below 85 percent. , on the total amount of bill under the head of “Energy Charges”. This

penalty shall be subject to the condition that overall penalty on account of low power factor does not

exceed 35%.

c. Should the average monthly power factor fall below 70%, the Distribution Licensee reserves the right to

disconnect the consumer’s installation till steps are taken to improve the same to the satisfaction of the

Distribution Licensee. This is, however, without prejudice to the levy of penalty charges for low power

factor in the event of supply not being disconnected.

d. For this purpose, the “average monthly power factor” is defined as the ratio expressed in percentage of total

kilowatthours to the total kilovoltampere hours recorded during the billing month. This ratio (%) shall be

rounded off to the nearest integer figure and the fraction of 0.5 or above will be rounded to next higher

integer and the fraction of less than 0.5 shall be ignored.

e. Notwithstanding what has been stated above, if the average monthly power factor of a new consumer is

found to be less than 90% in any month during the first 6 (six) months from the date of connection, the

consumer shall be entitled to a maximum period of six months to improve it to not less than 90% subject to

following conditions:

i. This period of six months shall be reckoned from the month following the month in which the

average power factor was found for the first time to be less than 90%.

ii. In all cases, the consumer will be billed the penal charges for low power factor, but in case the

consumer maintains the average monthly power factor in subsequent three months (thus in all four

months) to not less than 90%, the charges on account of low power factor billed during the said

six months period, shall be withdrawn and credited in next monthly bills.


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iii. The facility, as mentioned herein, shall be available not more than once to new consumer whose

average monthly power factor is less than 90% in any month during 6 months from the date of

connection. Thereafter, the charges on account of low average power factor, if found less than

90%, shall be payable as applicable to any other consumer.

xii. Additional Charges for Excess Demand

xiii. The consumer shall at all times restrict their actual maximum demand within the contract demand. In case

the actual maximum demand in any month exceeds the contract demand, the tariffs given in various

schedules shall apply to the extent of contract demand only. The consumer shall be charged for excess

demand computed as difference of recorded maximum demand and the contract demand on energy charges

and fixed charges and while doing so, the other terms and conditions of tariff, if any, shall also be

applicable on the said excess demand. The excess demand so computed, if any, in any month shall be

charged at the following rates from all consumers except Railway Traction.

xiv. Energy charges for excess demand: The consumer shall pay charges @ 1.3 times the tariff for energy

charges for consumption corresponding to excess demand in case the maximum demand recorded exceeds

the contract demand.

a. Fixed charges for excess demand: These charges shall be billed as per following:

i. Fixed charges for Excess Demand when the recorded maximum demand is up to 115% of the

contract demand: Fixed charges for Excess Demand over and above the contract demand shall be

charged at 1.3 times the normal fixed charges.

ii. Fixed charges for Excess Demand when the recorded maximum demand exceeds 115% of

contract demand: In addition to fixed charges in 1 above, recorded demand over and above 15 %

of the contract demand shall be charged at 2 times the normal fixed charges.

Example for fixed charges billing for excess demand: If the contract demand of a consumer is 100

kVA and the maximum demand recorded in the billing month is 140 kVA, the consumer shall be

billed towards fixed charges as under:--

1. Up to 100 kVA at normal tariff.

2. Above 100 kVA up to 115 kVA i.e. for 15 kVA at 1.3 times the normal tariff.

3. Above 115 kVA up to 140 kVA i.e. for 25 kVA at 2 times the normal tariff.

iii. The excess demand computed in any month will be charged along with the monthly bill and shall

be payable by the consumer.

iv. The billing of excess demand at higher tariff is without prejudice to the Licensee’s right to

discontinue the supply in accordance with the provisions contained in the Electricity Supply

Code, 2004.

v. In case of Railway Traction the excess demand so computed as per above, if any, in any month

shall be charged at the following rates:

1. When the recorded maximum demand is up to 115% of contract demand- Excess

Demand over and above the contract demand—at the rate of Rs. 400 per kVA

2. When the recorded maximum demand exceeds 115% of contract demand: - In addition

to fixed charges in (a) above, recorded demand over and above 15 % of the contract

demand shall be charged—at the rate of Rs. 600 per kVA

vi. While doing so, other provisions of electricity tariff (such as tariff minimum charge etc.) will also

be applicable on aforesaid excess demand.

vii. The excess demand computed in any month will be charged along with the monthly bill and shall

be payable by the consumer.


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viii. The billing of excess demand at higher tariff is without prejudice to the Licensee’s right to

discontinue the supply in accordance with the provisions contained in the Madhya Pradesh

Electricity Supply Code, 2013.

xv. Delayed Payment Surcharge: Surcharge at the rate of 1.00 % per month or part thereof on the amount outstanding

(including arrears) will be payable if the bills are not paid up to due date. The part of a month will be reckoned as

full month for the purpose of calculation of delayed payment surcharge. The delayed payment surcharge will not be

applicable after supply to the consumer is permanently disconnected.

xvi. Service Charge for Dishonoured Cheques: In case the cheque(s) presented by the consumer are dishonoured, a

service charge at the rate of Rs. 1000/- per cheque shall be levied in addition to delayed payment surcharge as per

rules. This is without prejudice to the Distribution Licensee’s rights to take action in accordance with any other

applicable law.

xvii. Temporary supply at HT: If any consumer requires supply for a temporary period, the temporary supply shall be

treated as a separate service and charged subject to the following conditions:

a. Fixed Charges and Energy Charges shall be charged at 1.3 times the normal tariff. The fixed charge shall

be recovered for the full billing month or part thereof.

b. The consumer shall guarantee minimum consumption (kWh) as applicable to the permanent consumers on

pro-rata basis based on number of days as detailed below:

Minimum consumption for

additional supply for

temporary period

=

Annual minimum consumption as applicable to permanent supply

X No. of days of temporary connection

No. of days in a year

c. The billing demand shall be the demand requisitioned by the consumer or the highest monthly maximum

demand during the period of supply commencing from the month of connection ending with the billing

month, whichever is higher.

d. The consumer shall pay the estimated charges in advance, before serving the Temporary Connection

subject to replenishment from time to time and adjustment as per final bill after disconnection. No interest

shall be given on such advance payment.

e. The consumer shall pay rental for the metering system.

f. Connection and Disconnection Charges shall also be paid.

g. In case of existing HT consumer, the temporary connection may be given through existing permanent HT

connection on following methodology of assessment:

i. Deemed contract demand (DCD) = CD for permanent connection + sanctioned demand for

temporary connection.

ii. Billing demand for the month shall be worked out in the following manner :

1. When recorded MD in the month (irrespective of date of temporary supply) is found to

be less than deemed CD for the month, fixed charges for the month shall be sum of fixed

charges at temporary tariff on 100% temporary sanctioned demand + fixed charge at

normal tariff on highest of a or b,

2. where a is Recorded MD minus temporary sanctioned demand and b is 90% CD of

permanent connection.

3. When recorded MD in the month is found to be equal to deemed CD for the month,

fixed charges for the month shall be sum of fixed charges at normal tariff on 100% CD


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for permanent connection + fixed charges at temporary tariff on 100% temporary

sanctioned demand.

4. When recorded MD in the month is found to be in excess of deemed CD for the month,

fixed charges for the month shall be sum of fixed charges at normal tariff on 100% CD

for permanent connection + fixed charges at temporary tariff on 100% temporary

sanctioned demand + fixed charges on 100% excess demand over and above deemed CD

at 1.5 times of temporary tariff.

5. The consumption corresponding to Permanent connection i.e. (A) during the month shall

be billed in the following manner:

Contract demand (Permanent)

A = --------------------------------------------------- X Total consumption

Deemed contract demand

or actual demand whichever is higher

Consumption of Temporary connection (B) = Total consumption - (A)

iii. The consumption corresponding to temporary sanctioned demand during the month i.e. (B) shall

be billed at 1.3 times the normal energy charges and shall be billed in the following manner:

Sanctioned demand for temporary connection

B = --------------------------------------------------- X Total consumption

Deemed contract demand

or actual demand recorded whichever is higher

Consumption during the month corresponding to excess demand i.e. (C), if any, shall be

calculated in the following manner:

C= total recorded consumption minus (consumption corresponding to permanent connection i.e.

A + consumption corresponding to temporary sanctioned demand i.e. B)

iv. vi. The demand recorded in excess of deemed contract demand shall be treated as Excess

Demand. For billing purposes such Excess demand, if any, in any month shall be treated as

pertaining to temporary connection load and shall be charged at 1.5 times the normal fixed

charges and energy charges of temporary connection. Additional charges for excess demand

recorded during the period of temporary connection shall be calculated as given below :

Fixed charges for excess demand = fixed charges per kVA for temporary connection * excess

demand* 1.5 (one and half)

Energy charges for consumption corresponding to excess demand = energy charges per unit for

temporary connection * 1.5(one and half)*(consumption corresponding to excess demand i.e. C)

h. Load factor incentive shall not be allowed on the consumption for temporary connection.

i. Power factor incentives/penalties and the condition for Time of Day Surcharge/ rebate shall be applicable at

the same rate as for permanent connection.


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Other Terms and Conditions for permanent connections:

xviii. The existing 11 kV consumer with contract demand exceeding 300 kVA who want to continue to avail supply at 11

kV at his request, shall be required to pay additional charge at 5 % on the total amount of Fixed Charges and, Energy

Charges billed in the month.

xix. The existing 33 kV consumer with contract demand exceeding 10,000 kVA who want to continue to avail supply at

33 kV at his request, shall be required to pay additional charge at 3% on the total amount of Fixed Charges and

Energy Charges billed in the month.

xx. The existing 132 kV consumer with contract demand exceeding 50,000 kVA who want to continue to avail supply at

132 kV at his request, shall be required to pay additional charge at 2% on the total amount of Fixed Charges and

Energy Charges billed in the month.

xxi. Metering Charges shall be billed as per schedule of Metering and Other Charges as prescribed in MPERC (Recovery

of Expenses and other Charges for providing Electric Line or Plant used for the purpose of giving Supply),

Regulations (Revision-I), 2009 as amended from time to time. Part of a month will be reckoned as full month for

purpose of billing.

xxii. The tariff does not include any tax or duty, etc. on electrical energy that may be payable at any time in accordance

with any law then in force. Such charges, if any, shall be payable by the consumer in addition to the tariff charges.

xxiii. In case any dispute arises regarding interpretation of this tariff order and/or applicability of this tariff, the decision of

the Commission will be final and binding.

xxiv. No changes in the tariff or the tariff structure including minimum charges for any category of consumer are

permitted except with prior written permission of the Commission. Any order without such written permission of the

Commission will be treated as null and void and also shall be liable for action under relevant provisions of the

Electricity Act, 2003.

xxv. In case a consumer, at his request, avails supply at a voltage higher than the standard supply voltage as specified

under relevant category, he shall be billed at the rates applicable for actually availed supply voltage and no extra

charges shall be levied on account of higher voltage.

xxvi. All consumers to whom fixed charges are applicable are required to pay fixed charges in each month irrespective of

whether any energy is consumed or not.

xxvii. All conditions prescribed herein shall be applicable notwithstanding if any contrary provisions, exist in the

agreement entered into by the consumer with the licensee.

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