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Tariff Order for SAIL-Bokaro 2011-12

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Tariff Order for SAIL-Bokaro 2011-12 Jharkhand State Electricity Regulatory Commission Provisional Tariff Order on Annual Revenue Requirement for Financial Years 2009-10, 2010-11 & 2011-12 and Determination of Distribution Tariff for Financial Year 2011-12 for SAIL-Bokaro Ranchi September 2011 SAIL-Bokaro Tariff Order for FY 2011-12 A1: INTRODUCTION ......................................................................................................................................... 5 JHARKHAND STATE ELECTRICITY REGULATORY COMMISSION ...................................................................................... 5 STEEL AUTHORITY OF INDIA LIMITED , BOKARO ............................................................................................................ 7 SCOPE OF THE PRESENT ORDER ...................................................................................................................................... 7 A2: PROCEDURAL HISTORY ......................................................................................................................... 9 BACKGROUND ................................................................................................................................................................ 9 INVITING PUBLIC RESPONSE ......................................................................................................................................... 11 SUBMISSION OF OBJECTIONS AND CONDUCT OF PUBLIC HEARING ............................................................................... 12 A3: SUMMARY OF ARR AND TARIFF PETITION .................................................................................... 13 A4: PUBLIC CONSULTATION PROCESS ................................................................................................... 15 SUBMISSION OF COMMENTS /S UGGESTIONS AND CONDUCT OF PUBLIC HEARING ........................................................ 15 USE OF POWER FROM BPSCL POWER PLANT ............................................................................................................... 15 EXCESSIVE O&M COSTS CLAIMED BY THE PETITIONER ............................................................................................... 16 SEGREGATION OF ACCOUNTS OF THE ELECTRICITY DISTRIBUTION BUSINESS ............................................................. 17 QUALITY OF SUPPLY .................................................................................................................................................... 18 HIGH DISTRIBUTION LOSSES ........................................................................................................................................ 18 CATEGORIZATION OF CONSUMERS AND HIGH FIXED CHARGES ................................................................................... 19 ELECTRICITY SUPPLY TO THE CO-OPERATIVE COLONY ................................................................................................ 19 A5: DETERMINATION OF ARR .................................................................................................................... 21 ENERGY SALES ............................................................................................................................................................ 22 DISTRIBUTION LOSSES ................................................................................................................................................. 25 ENERGY BALANCE ....................................................................................................................................................... 27 POWER PURCHASE COST .............................................................................................................................................. 28 EMPLOYEE COST .......................................................................................................................................................... 30 REPAIR & MAINTENANCE EXPENSES ........................................................................................................................... 32 ADMINISTRATIVE & GENERAL EXPENSES .................................................................................................................... 33 CAPITAL INVESTMENT PLAN ........................................................................................................................................ 34 DEPRECIATION ............................................................................................................................................................. 35 INTEREST ON LOAN ....................................................................................................................................................... 36 INTEREST & FINANCE CHARGES ................................................................................................................................... 37 INTEREST ON WORKING CAPITAL ................................................................................................................................. 38 RETURN ON EQUITY ..................................................................................................................................................... 39 REVENUE FROM EXISTING TARIFF ................................................................................................................................ 40 SUMMARY OF ARR ...................................................................................................................................................... 41 A6: TREATMENT OF REVENUE GAP ......................................................................................................... 42 A7: TARIFF APPROVED BY THE COMMISSION FOR FY 2011-12 ....................................................... 44 A8: TARIFF RELATED OTHER ISSUES ...................................................................................................... 45 TARIFF RATIONALIZATION AND LOAD MANAGEMENT ................................................................................................. 45 A9: TARIFF SCHEDULE FY 2011-12 ............................................................................................................. 47 DOMESTIC SERVICE (DS) ............................................................................................................................................. 47 NON –DOMESTIC SERVICE (NDS) ................................................................................................................................. 48 LOW TENSION INDUSTRIAL & MEDIUM POWER SERVICE (LTIS) ................................................................................. 49 HIGH TENSION VOLTAGE SUPPLY SERVICE (HTS) ....................................................................................................... 52 STREET LIGHT SERVICE (SS) ........................................................................................................................................ 53 SCHEDULE FOR MISCELLANEOUS CHARGES ................................................................................................................. 55 A10: TERMS AND CONDITIONS OF SUPPLY ............................................................................................. 57 A11: STATUS OF EARLIER DIRECTIVES .................................................................................................... 61 Jharkhand State Electricity Regulatory Commission 2 | P a g e SAIL-Bokaro Tariff Order for FY 2011-12 A12: DIRECTIVES .............................................................................................................................................. 64 SEGREGATION OF ACCOUNTS OF THE ELECTRICITY DISTRIBUTION BUSINESS AND AUDIT OF ACCOUNTS ................... 64 MAINTENANCE OF FIXED ASSET REGISTER .................................................................................................................. 64 TIMELINESS AND DATA ADEQUACY IN NEXT TARIFF PETITION ................................................................................... 65 SALES ESTIMATES AND PROJECTIONS .......................................................................................................................... 65 DISTRIBUTION LOSSES ................................................................................................................................................. 65 COMPLAINT REDRESSAL MECHANISM .......................................................................................................................... 66 CAPITAL INVESTMENTS ................................................................................................................................................ 67 BILLING AND METERING RELATED ISSUES ................................................................................................................... 67 COST OF SUPPLY STUDY (C OS) .................................................................................................................................... 67 SEPARATE CONNECTIONS TO CONSUMERS OF THE COOPERATIVE HOUSING SOCIETY .................................................. 67 QUALITY OF SUPPLY .................................................................................................................................................... 67 PRESENTATION DURING THE PUBLIC HEARING ............................................................................................................. 68 A13: ANNEXURE I .............................................................................................................................................
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