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Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking)

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Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking) Page: i Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking) Application before Hon’ble Karnataka Electricity Regulatory Commission for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19 under MYT Frame work. Dated: 30th November 2017 Corporate Office, “MESCOM BHAVANA”, Bejai, Kavoor Cross Road, Mangaluru-575 004. i Page: ii Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking) Registered Office: Corporate Office, Phone / Fax : 0824-2410116 “MESCOM BHAVANA”, E_Mail : [email protected] Bejai, Kavoor Cross Road, CIN: U40109KA2002SGC030425 Mangaluru- 575 004. No.: SEE(C&RP) / EE(RA) / ERC-2019/ 2017-18 / 7133 Date: 30-11-2017 Encl.: The Secretary, Karnataka Electricity Regulatory Commission, 6th & 7th Floor, Mahalaxmi Chambers, No.9/2, MG Road, Bangalore-560 001. Sir, Sub.: Application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19 under MYT Frame work. I am directed to submit herewith the application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19, for kind approval of the Hon’ble Commission. Further, application fee of Rs.76,37,500/- [Rupees Seventy Six Lakh Thirty Seven Thousand Five Hundred Eighty only] has been credited to KERC A/c No.34957749266 (State Bank of India, M.G.Road, Bengaluru, IFSC Code SBIN0005778) through RTGS. Yours faithfully, Superintending Engineer (Ele.,) (Commercial), MESCOM, Corporate Office, Mangaluru. ii Page: iii BEFORE THE KARNATAKA ELECTRICITY REGULATORY COMMISSION AT BANGALORE Filing No.: . Case No.: . IN THE MATTER OF: An application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Charges from Revenue for FY-19 and Tariff Petition for FY-19 of Mangalore Electricity Supply Company Limited under Section 61 & 62 of the Electricity Act, 2003 read with relevant provisions of KERC (Tariff) Regulations including KERC (Terms & Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006 AND IN THE MATTER OF: Mangalore Electricity Supply Company Limited (herein after referred to as MESCOM), an Electricity Distribution Company incorporated under the provisions of the Companies Act, 1956 and having its main office at “MESCOM BHAVANA”, Bejai, Kavoor Cross Road, Mangaluru-575 004. I, Nagaraja G.P. S/o Late Puttaswamy, aged 51 years residing at Mangaluru do hereby solemnly affirm and state as follows; 1. I am the Superintending Engineer (Ele.,) (Commercial) of MESCOM and am duly authorized to make this affidavit. 2. I say that on behalf of MESCOM, I am now filing this Petition under the provisions of Electricity Act, 2003 for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19. 3. I further say that the statements made and financial data presented in the aforesaid Petition are as per the records of the Company and on the information received from the concerned officials and believed to be true to the best of my knowledge. Further, all the statements and financial data subsequent to March 31, 2017 are based on estimations and correct to the best of my belief. 4. Solemnly affirmed at Mangaluru on this day 30-11-2017 that the contents of the above affidavit are true to the best of my knowledge and belief, no material information has been concealed there from. (Nagaraja G.P.) Place: Mangaluru Superintending Engineer (Ele.,) (Commercial), Date: 30-11-2017 MESCOM, Corporate Office, Mangaluru. iii Page: iv Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking) Application before Hon’ble Karnataka Electricity Regulatory Commission for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19 under MYT Frame work. INDEX Contents Page No. Covering Sheet & Affidavit i to iv CHAPTER-01 PREAMBLE 01 CHAPTER-02 MESCOM PROFILE 02-03 CHAPTER-03 COMPLIANCE TO DIRECTIVES 04-12 CHAPTER-04 ANNUAL PERFORMANCE REVIEW 13-24 CHAPTER-05 SALES PROJECTIONS 25-45 CHAPTER-06 ANNUAL REVENUE REQUIREMENT 46-58 CHAPTER-07 REVENUE INCOME & DEFICIT 59 CHAPTER-08 TARIFF REVISION PROPOSAL 60-75 CHAPTER-09 PROPOSED ELECTRIC TARIFF SCHEDULE 76-110 CHAPTER-10 NEW PROPOSALS 111-113 CHAPTER-11 PRAYER 114 ANNEXURE-1 115-118 ANNEXURE-2 119 ANNEXURE-3 120-230 ANNEXURE-4 231 ANNEXURE-5 232 ANNEXURE-6 233 ANNEXURE-7 234-239 FORMATS: A1 TO A4 240-250 FORMATS: D1 TO D24 251-350 KERC Preliminary Observations 351-387 Replies to Preliminary Observations 388-464 iv Page: v v MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.1-Preamble CHAPTER-1 PREAMBLE 1.1 MESCOM is filing its Annual Performance Review for FY-17 and projected Annual Revenue Requirement for the financial years FY-19 as per KERC (Terms and Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006. As per the provisions of the regulations, APR/ERC/ARR/Tariff application is required to be submitted before 30th November of every year. 1.2 Structure of the filing comprises of; a. MESCOM Profile. b. Compliance to Hon’ble Commission’s Directives. c. Annual Performance Review for FY-17. d. Sales Projection for FY-19. e. Aggregate Annual Revenue Requirement for FY-19. f. Revenue Income and Revenue Deficit. g. Tariff Revision Proposal for FY-19. h. Proposed Electric Tariff Schedule for FY-19. i. New Proposals j. PRAYER. 1.3 It is submitted that the actual details for the period from FY-12 to FY-17 and projection for FY-19 are furnished along with this application. 1.4 The Hon’ble Commission is requested to consider the proposal of Annual Performance Review for FY-17 and projected Aggregate Annual Revenue Requirement for the financial years FY-19. MESCOM submits that it has made sincere efforts to comply with the requirements of KERC (Tariff) Regulations and KERC (Terms and Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006. :-:-:-:-: 1 MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.2-Profile CHAPTER-2 MESCOM Profile 2.1 In June-2002, KPTCL was split into 4 ESCOMs namely Bangalore Electricity Supply Company Ltd. (BESCOM), Mangalore Electricity Supply Company Ltd. (MESCOM), Gulbarga Electricity Supply Company Ltd. (GESCOM), Hubli Electricity Supply Company Ltd. (HESCOM). MESCOM was subsequently split into 2 Companies, namely, Mangalore Electricity Supply Company (with first five districts namely Dakshina Kannada, Udupi, Shimoga, Chickmagalore and Kodagu) and Chamundeshwari Electricity Supply Corporation with Head Quarters at Mysore to cater retail supply for 4 Districts namely Mysore, Chamarajnagar, Mandya and Hassan with effect from 01-04-2005. With effect from 01-04-2006, Madikeri Division (Kodagu district) was transferred from MESCOM to CESC to come into effect from the financial year 2006-07. 2.2 The organization set-up is having 2 O&M Zone, 4 O&M Circles, 13 O&M Divisions, 59 O&M Sub Divisions and 230 O&M accounting / non-accounting sections. 2.3 Consumer, Consumption and Revenue Profile as on 30-09-2017: No. of Consumption Revenue Consumers (Mus) (Rs. In Cr.) Category (As at the end of (From Apr-17 to (From Apr-17 to Sep-17 Sep-17) Sep-17) BJ/KJ 192451 8.54% 23.17 0.97% 14.90 0.92% Domestic 1477295 65.56% 695.91 29.09% 406.60 25.12% LT-Commercial 201341 8.94% 183.70 7.68% 174.54 10.78% IP Sets 303270 13.46% 789.48 33.00% 409.30 25.29% LT-Industrial 29233 1.30% 67.52 2.82% 52.53 3.25% WS & St.Lt. 34530 1.53% 90.65 3.79% 67.50 4.17% Others 13325 0.59% 9.92 0.41% 16.53 1.02% HT 1942 0.09% 532.06 22.24% 476.69 29.45% Grand Total 2253387 100% 2392.42 100% 1618.59 100% 2 MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.2-Profile 2.4 Employee Strength: Sanctioned Working Cadres Vacant % Vacancy Strength Strength Group-A 263 210 53 20.15% Group-B 318 185 133 41.82% Group-C 2603 1621 982 37.73% Group-D 5671 3298 2273 40.08% On Deputation 21 16 5 23.81% Total 8876 5330 3546 39.95% 2.5 Salient Features of MESCOM: Sl. Particulars Statistics No. (As on 30-09-2017) 1 Area Sq. Km. 26222 2 Districts No.s 4 3 Taluks No.s 22 4 Population Lakhs 61.55 5 KPTCL Sub-stations (66 kV &above) No.s 84 9 MESCOM Sub-stations (33 kV) No.s 38 10 Distribution Transformer Centers No.s 61495 11 HT lines Ckt. Km 34104 8 LT lines Ckt. Km 78920 6 Net Fixed Assets (As on 31-03-2017) Rs. in Cr. 1140.52 7 Consumers Lakhs 22.22 12 Energy Sales in Fy-17 MU 4794.42 13 Rev. Dem.(including Tax & int.) in Fy-17 Rs. in Cr. 2909.11 14 Rev. Col. (including Tax & int.) in Fy-17 Rs. in Cr. 2885.90 15 Revenue Collection Efficiency in Fy-17 % 99.20% :-:-:-:-: 3 Chapter -3 Compliance to Directives 1. Directives on conducting consumer interaction meeting at Subdivision level. The Commission directs MESCOM to conduct Consumer Interaction Meetings chaired by the Superintending Engineers, in the O&M sub- divisions according to a published schedule, once in every three months with a view to providing a forum to the consumers to get their grievances resolved.
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