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Annual Report 2010 Together, let us light up our lives ODISHA ELECTRICITY REGULATORY COMMISSION aûhðòKaûhðòK aòaeYúaòaeYú ANNUALANNUAL REPORTREPORT 2 0 1 0 - 1 1 Workshop on "Public Participation for Improvement in quality of supply and financial Sri Prafulla Chandra Ghadai, Minister Finance addressing the viability of the distribution sector vis-à-vis Franchise Operation in Odisha" closing ceremony of 16th Foundation Day of OERC and seminar on Technology: Enabling the on 05.01.2011 at Hotel Crown, Bhubaneswar Transformation of the Power Distribution on 1st-2nd August, 2011 at Hotel May Fair, Bhubaneswar Sri J.K. Mohapatra, Principal Secretary, Finance, Govt. of Odisha addressing the closing ceremony of 16th Foundation Day of OERC and seminar on Technology : Enabling the Transformation of the Power Distribution on 1st-2nd August, 2011 at Hotel May Fair, Bhubaneswar Sri K.C.Badu, Member, OERC addressing the closing ceremony Sri B.K. Misra, Member, OERC addressing the closing ceremony of 16th Foundation Day of OERC and seminar on Technology: Enabling the Transformation of 16th Foundation Day of OERC and seminar on Technology: Enabling the Transformation of the Power Distribution on 1st-2nd August, 2011 at Hotel May Fair, Bhubaneswar of the Power Distribution on 1st-2nd August, 2011 at Hotel May Fair, Bhubaneswar ANNUAL REPORT - 2010-11 aûhðòK aòaeYú - 2010-11 Together, let us light up our lives. ODISHA ELECTRICITY REGULATORY COMMISSION Bidyut Niyamak Bhavan, Unit-VIII, Bhubaneswar - 751 012, INDIA Ph. No. (0674)2393097 / 2396117 / 2393606 / 2395886 Fax : (0674) 2393306 / 2395781 E-mail:[email protected] Website : www.orierc.org [Note : The word “Odisha” may be read in place of “Orissa” wherever it appears.] Annual Report - 2010-11 CONTENTS Mission Statement 5 Overview 5 Functions of The State Commission 6 The Message 7 Profiles of the Chairperson & Members 14 Activities of the Commission in further details during the FY 2010-11 15 Tariff Division 15 Monitoring the Activities of the Licensees 29 Engineering Division 49 Publication of system Performance of OPTCL for the year 2010-11 50 Consumer Interest 55 GRF and Ombudsman 55 Publicity 57 Workshop/Seminar 57 Publication 57 Right to Information 57 Dispute Adjudication 58 Administration 69 State Advisory Committee Meeting 70 Annual Statement of Accounts 70 Concluding observations and Road ahead 70 2 Annual Report - 2010-11 Annexures Annexure-A : List of Officers & Staff of the Commission 85 Annexure-B : Organisation Chart of OERC 86 Annexure-C : List of Seminar/Workshop/Training Programmes attended by Officers/ 87 Officials during the FY 2010-11 Annexure-D, E, F : Summary of discussions of the State Advisory Committee 88 (SAC) Meeting (2010-11) Annexure-G : Income and Expenditure Accounts as on 31st March, 2011 101 Annexure-H : Receipt of Payment Account as on 31st March, 2011 102 Annexure-I : Balance Sheet as on 31st March, 2011 102 Annexure-J : Separate Audit Report for the year ending 31.03.2008 103 Appendices Appendix-I : D.O. letter No.Engg.-11/2007 (IV)/ 553 dt.31.03.2011 of Chairman, OERC 107 addressed to Chief Secretary & Chief Development Commissioner on statutory advice regarding inspection of electrical installations for safety in electric supply. Appendix-II : D.O. letter No.CHP/2011/921 dt.27.05.2011 of Chairman, OERC 109 addressed to Chief Secretary & Chief Development Commissioner on ineffective functioning of Energy Police Stations. Appendix-III : D.O. letter No.DIR(T)-332/08/975 dt.02.06.2011 of Chairman, OERC 111 addressed to Chief Secretary, Govt. of Orissa on Filling up the vacant posts in OPTCL Appendix-IV : Letter No.3774 dt.22.04.2010 of Secretary, OERC addressed to 117 Commissioner-cum-Secretary, Deptt. of Energy Govt. of Odisha on implementation of Business Plan for the year 2008-09 to 2012-13 - Proactive steps by State Govt. and initiative by the Distribution Companies Appendix-V : Letter No.Secy-066/2000/994 dt.04.06.2011 of Secretary, OERC 122 addressed to Principal Secretary to Govt. Water Resources Deptt. on payment of outstanding Energy dues by OLIC for the period from April, 1999 to December, 2002 and up to date payment by Pani Panchayats. Appendix-VI : Letter No.Secy/CC/1221 dt.11.07.2011 of Secretary, OERC 125 addressed to Commissioner-cum-Secretary, Health & Family Welfare Deptt. on outstanding energy dues of consumers under Health & Family Welfare Department 3 Annual Report - 2010-11 Appendix-VII : Deptt. of Energy letter No.3030 dated 21.04.2011 to Discoms on 138 Physical Inspection of electricity utilities. Appendix-VIII : Govt. of Odisha, DoE order No.3995 dated 26.05.2011 asking the 139 Discoms to extend their necessary cooperation to the Vigilance Authorities of the State. Appendix-IX : D.O. letter No.16/28/2008-APDRP dt.23.02.2011 of Joint Secretary, 141 Ministry of Power, Govt. of India addressed to Secretary, Deptt. of Energy, Govt. of Orissa on RAPDRP. Appendix-X : Letter No.DIR(T)-330/08/925 dtd.28.05.2011 of Secretary, 142 OERC addressed to Commissioner-cum-Secretary, Deptt. of Energy on disparity in loss level vis-à-vis financial assistance under RAPDRP. Appendix-XI : Important Judgments 146 Appendix-XII : Extracts of the Commission's order dated 12.05.2011 (Para 51 to 66) 156 in Case No.35 of 2005 (Revocation of licensee of Reliance Energy Ltd.) Appendix-XIII : Suo motu proceeding of Case No.44 of 2011 dated 18.06.2011 161 Appendix-XIV : Extracts of Power Scenario in Orissa upto 2016-17 (Para 8 to 15) 184 in Case No.64 of 2011 vide order dated 23.09.2011 Appendix-XV : Chairman's D.O. letter No.DIR(T)-351/08 (Vol.I)/1765 dated 22.09.2011 194 addressed to Chief Secretary, Orissa on Separation of SLDC functions from OPTCL 4 Annual Report - 2010-11 ORISSA ELECTRICITY REGULATORY COMMISSION Together, let us light up our lives. MISSION STATEMENT 1. The Orissa Electricity Regulatory Commission is committed to fulfill its mandate for creating an efficient and economically viable electricity industry in the State. It balances the interests of all stakeholders while fulfilling its primary responsibility to ensure safe and reliable supply of power at reasonable rates. It is guided by the principles of good governance, namely, transparency, accountability, predictability, equitability and participation in discharge of its functions. It safeguards the interests of the state and gives a fair deal to consumers at the same time. OVERVIEW 2. The Orissa Electricity Reform Act, 1995 (Orissa Act 2 of 1996), in short OER Act, 1995 was enacted for the purpose of restructuring the electricity industry, for rationalization of Generation, Transmission, Distribution and Supply of Electricity, for opening avenues for participation of private sector entrepreneurs and for establishment of a Regulatory Commission for the State, independent of the state government. The Electricity Act, 2003 has been modelled mostly on the basis of the provisions of the OER Act, 1995. 3. An important component of power sector reform is establishment of an independent autonomous Regulator, the Orissa Electricity Regulatory Commission for achievement of objectives enshrined in the OER Act, 1995. It became functional on 01.8.96 with the joining of its three members. 4. The property, interest in property, rights and liabilities belonging to the erstwhile OSEB (Orissa State Electricity Board) were vested in the State Government as on 1.4.96. All loans, subventions and obligation of the Board towards the State stood extinguished. The State Government classified the assets, liabilities and proceedings acquired by the State as well as the assets, liabilities and proceedings relating to the undertakings owned by the State Government to (a) Generation Undertaking (b) Transmission Undertaking and those not classified within (a) & (b) to residual assets. The State Government was empowered to vest the Undertakings in GRIDCO & OHPC which the State did but only after upvaluation of assets on the same day and restructured the Balance Sheet of GRIDCO and OHPC. 5. The Grid Corporation of Orissa Limited (GRIDCO) was incorporated under Companies Act, 1956 on 20.4.95. All Transmission and Distribution Undertakings were transferred to GRIDCO on 01.4.96 with upvalued cost with a restructured Balance Sheet. It was to engage in the business of procurement, transmission & bulk supply of electric energy apart from planning, co-ordination & load forecast. 6. The Orissa Hydro Power Corporation Limited (OHPC) was incorporated under the Companies Act, 1956 on 21.4.95. All the generating assets of Government as well as OSEB have been transferred to OHPC on 01.4.96. This Corporation takes care of all the operating and ongoing Hydro Power Stations. 49% of the share of the Orissa Power Generation Corporation (OPGC) were disinvested to the US based AES company in January, 1999. 7. As a sequel to the passing of the Act, the distribution of power was privatized in Orissa and the management of the four subsidiary companies in charge of distribution in the Central Northern, Southern and Western zones of Orissa, namely CESCO, NESCO, SOUTHCO and WESCO was entrusted to private companies which took over 51% of the shares. GRIDCO became a deemed trading licensee from 10.6.05. The Orissa Power Transmission Corporation Ltd. (OPTCL) took over intra-state transmission & functions of the state load despatch centre on the same date. 5 Annual Report - 2010-11 8. In the year 2003, the Electricity Act, 2003 was enacted by Govt. of India and this came into force w.e.f 10.06.2003. The Electricity Act, 2003 has been modelled mostly on the basis of the various provisions of the erstwhile Orissa Electricity Reform Act, 1995. The Electricity Act, 2003 which came into force on 10th June, 2003, aims to promote competition, protect interest of consumers while supplying electricity to all areas, retionalize electricity tariff, ensure transparent policies regarding subsidies, and provide an enabling regulatory environment.
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