PETITION FOR ANNUAL REVENUE REQUIREMENT
And
TARIFF PROPOSAL FOR THE FINANCIAL YEAR 2006-2007
Submission of Text and Affidavit
To
Assam Electricity Regulatory Commission
By
Lower Assam Electricity Distribution Company Limited Bijulee Bhawan, Paltanbazar Guwahati-781 001
BEFORE THE ASSAM STATE ELECTRICITY REGULATORY COMMISSION, GUWAHATI.
Petition No. –
Case No. (to be filed by the Office)
IN THE MATTER OF Filing of Annual Revenue Requirement Proposal for the year 2006-2007
AND
Petition for Determination of Tariff For the year 2006-2007
AND
IN THE MATTER OF Lower Assam Electricity Distribution Company Limited Bijulee Bhawan, Paltanbazar, Guwahati-781 001. Petitioner
I, ______son of Shri ______aged ______years residing at ______do solemnly affirm and say as follows:
I am the ______of Lower Assam Electricity Distribution Company Limited, the petitioner in the above matter and am duly authorized by the said Petitioner to make this affidavit for and on behalf of Lower Assam Electricity Distribution Company Limited.
The Statement made in the Petition based on information received from official records and I believe them to reflect truly and nothing materials has been concealed from the statements so made or documents or supporting data etc. attached.
Solemnly affirm at Guwahati on ______th day of ______2005 that the contents of this affidavit are true to may knowledge, no part of it is false or nothing material has been concealed therefore and misleading material included therein.
Deponent Place: Guwahati
Date ______
By order of the Commission
Secretary of the Commission
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
TABLE OF CONTENTS
T1: Legal and Regulatory Framework...... 11 T2: Annual Revenue Requirement for FY 2006-07...... 11
SALES FORECAST FY 2006-07 ...... 11
EFFICIENCY PARAMETERS ...... 14 Distribution Loss Levels ...... 14 Collection Efficiency...... 14 Aggregate Technical & Commercial (AT&C) Losses ...... 14
BASIS FOR PROJECTION OF THE ANNUAL REVENUE REQUIREMENT for FY 2006-07...... 15 Power Purchase Cost ...... 16 Employee Expenses...... 16 Repair and Maintenance Expenses...... 18 Administrative and General Expenses...... 19 Depreciation ...... 20 Interest & Financing Charges...... 21 Term Loans and Interest on Term Loans ...... 21 Provision for Bad and Doubtful Debts ...... 22 Return on Equity...... 22 Other Income ...... 23 T3: Investment Plan for FY 2006-07...... 24 Accelerated Power Development and Reform Program (APDRP) ...... 24 Non Lapsable Central Pool of Resources (NLCPR)...... 25 Rural Electrification...... 26 Rural Electrification (Minimum Needs Program)...... 26 Prime Minister Gramudyog Yojana (PMGY) ...... 26 Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) ...... 27 Tribal Sub Plan (TSP) ...... 27 Scheduled Caste Component Plan (SCCP) ...... 27 ADB Financed Schemes...... 27 Counter Part Fund for ADB Funded Schemes ...... 27
STATE PLAN FUND ...... 27 Distribution Line and Sub Station Augmentation...... 27 Disaster Management...... 28 T4: Efficiency Improvement Initiatives...... 28 Energy accounting –Installation of electronic meters at 11KV feeders ...... 28 Efforts for controlling 11 KV Interruption ...... 28 Loss Management...... 29
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Customer Care Processes...... 35 Performance Incentive Scheme...... 36 T5: Revenue from Charges and Proposal for Tariff Revision ...... 37 Revenue from Existing Charges ...... 37 Tariff Revision Proposal...... 38 Revenue from existing tariff insufficient to cover costs ...... 38 Facilitating New Investments ...... 38 Tariff Philosophy ...... 38 Expected Revenue from Proposed Charges ...... 39 T6: Proposed Tariff...... 41
PROPOSED REVISION IN TARIFFS ...... 41
PROPOSAL FOR REVISED TARIFFS...... 41 LT Category-I: Domestic A (including Jeevan Dhara - to be merged with LT Domestic A) ...... 41 LT Category-II: LT Domestic B...... 41 LT Category-III: LT Commercial ...... 42 LT Category-IV: LT General Purpose Supply...... 42 LT Category-V: LT Public Lighting ...... 42 LT Category-VI: LT Agriculture...... 42 LT Category-VII: LT Small Industries...... 43 LT Category-VIII: Temporary Supplies...... 43 HT Category-I: HT Domestic ...... 43 HT Category-II: HT Commercial ...... 43 HT Category-III: HT Public Water Works ...... 44 HT Category-IV: HT Bulk Supply...... 44 HT Category-V (A): HT Small Industries...... 44 HT Category-V (B): HT-I Industries ...... 44 HT Category –V(C): HT-II Industries ...... 45 HT Category-VI: Tea, Coffee and Rubber...... 45 HT Category-VII: Oil and Coal...... 46 HT Category-VIII: HT Agriculture...... 46 Fuel Adjustment Surcharge (FAS) ...... 47 Import Adjustment Surcharge (IAS) ...... 48 Delayed Payment Surcharge (DPS) ...... 49 Power Factor Rebate or Penalty ...... 49 Statutory levies...... 50 T7: Progress on Commission’s Previous Directives...... 50
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LIST OF ANNEXURES
Annexure I: Employee Cost – Additional Information ...... 57 Annexure II: Gross Fixed Assets...... 58 Annexure III: Depreciation ...... 59 Annexure IV: Net Fixed Assets...... 60 Annexure V: Revenue from Sale of Power ...... 61 Annexure VI: Category wise Revenue from Sale of Power...... 62 Annexure VII: Existing and Proposed Tariff ...... 66 Annexure VIII: Proposed Schedule of Tariff ...... 70 Annexure IX: Government of Assam::Notification ...... 85 Annexure X: Profit and Loss Account ...... 95 Annexure XI: Other Debits ...... 96 Annexure XII: Status of Hon’ble Commission’s formats ...... 97
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LIST OF TABLES
Table 1: Growth rates in sales for major categories of consumers...... 13 Table 2: LAEDCL’s Sales Projection (MU) for the Ensuing Year 2006-07...... 13 Table 3: Projected Annual Revenue Requirement for FY 2006-07 ...... 15 Table 4: Power Purchase Cost...... 16 Table 5: Employee Expenses ...... 18 Table 6: Repair and Maintenance Expenses...... 19 Table 7: A & G Expenses ...... 19 Table 8: Fixed Asset Details ...... 20 Table 9: Break-up of Depreciation...... 21 Table 10: Interest and Finance Charges for FY 2006-07 ...... 22 Table 11: Other Income ...... 24 Table 12: Proposed Plan Outlay for LAEDCL under APDRP for FY 2006-07...... 25 Table 13: Key NLCPR Schemes...... 26 Table 14 : RE (MNP) Scheme ...... 26 Table 15: PMGY Schemes...... 27 Table 16: Electrification under RGGVY Scheme...... 27 Table 17: Feeder Metering Status ...... 28 Table 18: Category-wise Revenue based on Existing Tariff...... 38 Table 19: Category-wise revenue based on proposed tariff ...... 40 Table 20: Percentage Contribution of major categories to Total Sales and Revenue...... 40 Table 21: Replies to AERC Directives ...... 50
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Glossary
Acronym Full form A&G Administrative and General ABC Aerial Bunched Conductors ABT Availability Based Tariff ADB Asian Development Bank AEGCL Assam Electricity Generating Corporation Limited AERC Assam Electricity Regulatory Commission AMR Automated Meter Reading APDRP Accelerated Power Development and Reforms Program APERC Andhra Pradesh Electricity Regulatory Commission APGCL Assam Power Grid Corporation Limited APTRANSCO Andhra Pradesh Transmission Company ARR Annual Revenue Requirement ASEB Assam State Electricity Board AT&C Aggregate Technical and Commercial BST Bulk Supply Tariff CAEDCL Central Assam Electricity Distribution Company Limited CAGR Compounded Annual Growth Rate CEO Chief Executive Officer CMRI Common Meter Reading Instrument CT/PT Current Transformer/Potential Transformer DPS Delayed Payment Surcharge DTRs Distribution Transformers EE Executive Engineer FAS Fuel Adjustment Surcharge FY Financial Year GEC Guwahati Electrical Circle GoA Government of Assam GoI Government of India GPRS General Packet Radio Service GSM Global System for Mobile Communication HHM Hand Held Machines HT High Tension HVDS High Voltage Distribution System IAS Import Adjustment Surcharge IRCA Industrial Revenue Collection Area KV Kilo Volt KVA Kilo Volt Ampere KW Kilo Watt KWH Kilo Watt Hour LAEDCL Lower Assam Electricity Distribution Company Limited LT Low Tension MCAGR Modified Compounded Annual Growth Rate MCBS Miniature Circuit Breaker MIS Management Information Systems MMSCMD Measured Million Standard Cubic Meter per day MOU Memorandum of Understanding MRI Meter Reading Instruments MU Million Unit NERLDC North East Region Load Despatch Centre
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Acronym Full form NLCPR Non-Lapsable Central Pool Reserve O/H Over Heads PGCIL Power Grid Corporation of India Limited ph Phase PIS Performance Incentive Scheme PLC Power Line Carriers PLF Plant Load Factor PMGY Prime Minister Gramudyog Yojana PSTN Public Switch Telephone Network R&M Repairs and Maintenance RE Rural Electrification MNP Minimum Needs Program RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana Rs Rupees RST Retail Supply Tariff RTU Remote Terminal Unit SBM Spot Billing Machine SC Scheduled Caste SCCP Scheduled Caste Component Plan SDE Sub-Divisional Engineer SEBs State Electricity Boards SMEC Snowy Mountains Engineering Corporation Limited ST Scheduled Tribe T&D Transmission and Distribution T.C. Transportation Cost TCS Tata Consultancy Services Limited TOU Time of Use TSP Tribal Sub-Plan UAEDCL Upper Assam Electricity Distribution Company Limited UoM Unit of Measurement US United States V Volt YOY Year-on-Year
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BEFORE THE HON’BLE ASSAM ELECTRICITY REGULATORY COMMISSION
FILING NO. ………………..
CASE NO. ………………….
IN THE MATTER OF:
A Petition for the approval of the Annual Revenue Requirement for the period for FY 2006-07 and for the approval of the proposal for revision of the retail supply tariffs for the Lower Assam Electricity Distribution Company Limited (LAEDCL)
AND
IN THE MATTER OF:
Lower Assam Electricity Distribution Company Limited incorporated under the provisions of the Companies Act, 1956 and having its registered office in the State of Assam
THE HUMBLE APPLICANT ABOVE NAMED MOST RESPECTFULLY SHEWETH:
1 That the Lower Assam Electricity Distribution Company Limited, hereinafter named as LAEDCL, is a successor corporate entity, formed in pursuant to the notification of the Government of Assam, notified under sub-sections (1), (2), (5), (6) and (7) of Section 131 and Section 133 of the Electricity Act 2003 (Central Act 36 of 2003), for the purpose of transfer and vesting of functions, properties, interests, rights, obligations and liabilities, along with the transfer of Personnel of the Board to the successor corporate entities.
2 That the Lower Assam Electricity Distribution Company Limited, is a company incorporated with the main object of undertaking electricity distribution and retail supply in the areas of Mangaldoi, Rangia, Bongaigaon, Kokrajhar, GEC-I and GEC-II circles of the State.
3 That the Lower Assam Electricity Distribution Company Limited is a deemed licensee under the provisions laid down in Section 14 Proviso 5, read with Section 131 (2) of the Electricity Act 2003.
4 That the licensee is now filing the petition for the approval of its Annual Revenue Requirement for the financial year 2006-2007 and proposal for the revision of the retail supply tariffs.
5 That the Government of Assam vide notification no. PEL.151/2003/Pt/349 dated 16th August, 2005 (Annexure IX) issued orders to give effect to the reorganization of the Assam State Electricity Board and the finalization of the provisional transfers effected as per the provisions of the Electricity Act, 2003 and the Transfer Scheme.
(a) The opening balance sheets as per Schedule V to this order has been prepared based on the approved accounts of Assam State Electricity Board as on 31st March, 2004 and such opening balance sheet shall all be subject to all consequential adjustments on the update, finalization and audit of accounts of Assam State Electricity Board as on 31st March, 2005. (b) The Government of Assam shall pass separate orders in terms of the Transfer Scheme in regard to the transfer and absorption of personnel of Assam State Electricity Board in the five companies, namely: Assam Power Generating Corporation Limited, Assam Electricity Grid corporation Limited, Upper Assam Electricity Distribution Company Limited, Central Assam Electricity Distribution Company Limited and Lower Assam Electricity Distribution Company Limited.
(PETITIONER)
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NOTES:
In this petition:
Previous Year is defined as the Financial Year (FY) 2004-2005
Current Year is defined as the Financial Year (FY) 2005-2006
Ensuing Year is defined as the Financial Year (FY) 2006-2007
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T1: Legal and Regulatory Framework
1.1 Under the provisions of the Electricity Act, 2003 the Assam Electricity Reforms First Transfer Scheme, 2004 (hereafter “Transfer Scheme) was notified by Government of Assam on 10th December 2004. Under Section 5 (3) of the transfer scheme the functions and undertakings as set out in Schedule-E of the transfer scheme stands transferred to Lower Assam Electricity Distribution Company Limited (LAEDCL).
1.2 Section 131 (1) and (2) of the Electricity Act 2003 mandates that any property, interest in property, rights and liabilities vested with the Board will be re-vested in a Government company or companies. Also Section 14 provides “…Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall be deemed to be a licensee under this Act…” Hence, LAEDCL is the deemed licensee to distribute power in the above specified area.
1.3 Section 62 of the Electricity Act 2003 requires the licensee to furnish details as may be specified by the Commission for determination of tariff.
1.4 Section 7 of A. E. R. C. (Terms and conditions for determination of Tariff) Regulations 2005 lays down the following:
The licensee and generating company may file a tariff petition annually with the Commission to determine changes to the current tariff by not later than 1st December unless an extension is granted by the Commission upon application.
In the tariff petition, the licensee and generating company shall submit information for the purpose of calculating expected revenue and expenditure and for furnishing information for tariff determination in formats that will be issued separately by the Commission
The tariff petition shall be accompanied by financial and performance information in forms specified by the Commission for the previous year/years, current year and the ensuing year. The information for the previous year should be based on audited accounts and in case audited accounts for previous year are not available, audited accounts for the latest proceeding previous year should also be filed along with unaudited accounts for all the succeeding year.
If a person holds more than one licensee and /or is deemed to be licensee for more than one area of distribution or transmission, he shall submit separate petitions in respect of each licensee or area of transmission or distribution
1.5 LAEDCL has come into being on 10th December 2004. The petitioner has now prepared the ARR and Tariff proposal for FY 2006-07 and submits the same to AERC.
1.6 The status of the various data formats and forms, as required by the Hon’ble Commission, is furnished in Annexure XII. T2: Annual Revenue Requirement for FY 2006-07
SALES FORECAST FY 2006-07
2.1 For the purpose of sales forecast, LAEDCL has analyzed the sales pattern of month-wise and category-wise sale of electricity for the last five years (from FY01 to FY05) and the actual sales data for the first 3 months of FY06 (Apr 05 – Jun 05). These sales patterns have been used in estimating the sales for the balance period of the current year FY06 and forecasting the sales for FY07.
2.2 The sales projections have been done separately for each consumer category for the ensuing
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year. The slab-wise break-up of sales for the new categories, that were introduced by the Commission vide its 2005-06 Tariff Order (e.g. Domestic), have been arrived at based on the breakup used by the Commission in its 2005-06 Tariff Order, suitably modified where necessary in line with boundary conditions. This has been done due to non-availability of actual sales data for the new Tariff Categories at the time of preparation and submission of the petition.
2.3 To arrive at the revenue figures (based on both the existing as well as proposed tariff), it was necessary to estimate the intra-category sales. For example, within Domestic A category, there are three slabs - (a) up to 120 units per month, (b) between 121 and 240 units per month and, (c) above 240 units per month – all of which have different associated rates. In the absence of historical data, LAEDCL has accepted intra-category sales breakup suggested by AERC at the level of ASEB as a whole – modified as indicated in the earlier paragraph.
2.4 For the purpose of sales forecasting for the ensuing year, the following methodology has been adopted –
a. The Compounded Annual Growth Rate (CAGR) has been calculated for the 5-year period from FY01 to FY05.
b. The Year-on-Year (YOY) growth rates for the first 3 months of FY06 over FY05 have been computed.
c. The long term CAGR has then been fine-tuned to incorporate the sales trend as reflected by the short-term growth rates to arrive at the Modified CAGR (MCAGR).
d. The Modified CAGR for each category has then been used to project the sales growth for the respective category. However, for a few categories where the MCAGR was found to be greater than 10%, it has been capped at 10%. Similarly, where it has shown a negative growth, the growth rate has been taken at 0%.
e. The sales projections have been projected for each category (and also the slabs, wherever applicable) separately, based on historical data available.
f. The number of consumers and connected load has been projected based on historical data available for ASEB as a whole.
g. In the absence of detailed and validated data for each of the distribution companies, the number of consumers and connected load for each distribution company has been estimated based on the proportion of sales for the respective distribution company.
h. The aforesaid steps have been followed keeping in mind the boundary conditions for each category (and if applicable, each slab). Wherever required, the figures have been sanitized to eliminate apparent anomalies and logical inconsistencies (e.g. number of HT Domestic and HT Commercial consumers being 17,000 and 12,000 approximately as per Tariff Order for FY 2005-06 for ASEB as a whole, average connected load for Jeevan Dhara consumers being 0.76 KW etc.)
Under APDRP and ADB schemes, LAEDCL is putting in massive efforts towards strengthening the transmission and distribution network with a view to improving the overall system reliability. Coupled with the vigorous initiatives that have been taken to improve the PLF of APGCL’s thermal power stations as well as the necessary arrangements to import energy during the lean hydro season, this is expected to significantly reduce the impact of suppressed sales due to energy shortage and/or network outages.
In recognition of these welcome developments, the projected sales for FY 2005-06 for
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ASEB as a whole has been taken to be 75 MU higher than that computed based on actual sales for Apr-Jun 2005 and historical sales figures and growth rates for the balance 9 months. In respect of LAEDCL, the corresponding adjustment on account of reduction of suppressed sales works out to about 31 MU. Similarly, for FY 2006-07, it is estimated that there will a further reduction of 75 MU of suppressed sales for ASEB as a whole and a further 31 MU for LAEDCL.
Table 1: Growth rates in sales for major categories of consumers (After considering the impact of aforesaid reduction in suppressed sales)
Category Projected Growth Rate
Domestic 10.9% Commercial 12.0% General Purpose Supply 13.6% Public Lighting 13.6% Public Water Works 4.4% Agriculture 11.4% Industrial 8.1% Bulk Government and Educational Institutions 13.6% Others 3.3% Category - IX : Tea, Coffee and Rubber 3.3% Category - X : Oil & Coal 13.6% Overall 9.6%
2.5 Based on methodology detailed in the earlier paragraphs, LAEDCL’s forecast in the growth in number of consumers, connected load and sales for the Ensuing Year, have been detailed in the following tables:
Table 2: LAEDCL’s Sales Projection (MU) for the Ensuing Year 2006-07
LAEDCL Category 2004-05 2005-06* 2006-07
Domestic 357.58 395.72 438.84 Commercial 124.28 139.60 156.38 General Purpose Supply 25.84 29.45 33.46 Public Lighting 3.96 4.52 5.13 Public Water Works 16.60 17.38 18.14 Agriculture 5.79 6.47 7.21 Industries Rural 10.90 11.29 11.66 Urban 131.76 143.31 155.41 Bulk Supply Bulk Government Educational Institutions 11.72 13.36 15.18 Others 100.82 104.46 107.91 Tea, Coffee and Rubber 17.67 18.30 18.91 Oil & Coal 5.70 6.50 7.39 Temporary Supply 0.33 0.38 0.43 Sales to LAEDCL consumers 812.97 890.72 976.04 Employees consumption 1.62 3.19 3.33 Board’s establishment 0.29 0.37 0.43 Total Sales 814.87 894.28 979.80 Note: The above figures have been regrouped wherever necessary to make them comparable * 2005-06 data is based on first 3 months actuals and projections for remaining 9 months
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2.6 Hence, to summarize, the total energy sales for LAEDCL is projected to be 980 MU for the ensuing year.
EFFICIENCY PARAMETERS
Distribution Loss Levels
2.7 The distribution network inherited by LAEDCL from the parent company is aged and highly overloaded and inadequate to meet the future demands. The management has envisaged several plans for the augmentation of the existing system and has proposed several capital investment programmes to meet the growth in demand in the future. This implies substantial investment is required in the sector. As discussed later in Section 3, LAEDCL has envisaged a substantial network augmentation and strengthening program, the details of which are furnished in the Investment Plan for FY 2006-07 Section under APDRP, NLCPR, ADB and State Plan schemes etc.
2.8 However, reduction in Technical and Commercial losses cannot be achieved immediately and would require a transition period for accomplishment. The Commission in earlier Tariff Order has clearly mentioned that, “It is true that the T&D loss is very high. However, it is also true that this cannot be reduced suddenly. In considering the allowable T&D loss consideration has to be given to the starting levels as well as the nature of the grid.”
2.9 The licensee has come into being from 10 December 2004. The transmission & distribution loss level for FY 2004-05 in respect of ASEB as a whole has been reported to be 38.94% (as against 36.29% for FY 2003-04) as per the Annual Statement of Accounts for that year. Assuming that the transmission loss for FY 2004-05 was 8.55% as was permitted by the Hon’ble Commission for FY 2005-06, the distribution loss for FY 2004-05 works out to 33.23% for the erstwhile ASEB. LAEDCL has envisaged an overall distribution loss of 24.90% in the Ensuing Year, keeping in mind the capital investment earmarked for the year and the various measures being taken to reduce the technical and commercial losses. This is also in line with the directive issued by the AERC in its Tariff Order for FY 2005-06.
2.10 As detailed above, the total sales for the year FY 2006-07 is estimated to be 980 MU. Based on an overall distribution loss of 24.90%, the input requirement of energy for LAEDCL at the Distribution network is projected to be 1305 MU.
Collection Efficiency
2.11 Collection Efficiency is defined as the ratio of the total revenue collected to the total revenue billed for the corresponding period. In case of LAEDCL, the collection efficiency in FY 2004-05 has been reported to be about 95%. This total cash collected also includes the quantum of cash collected from debtors and past arrears. For the purpose of tariff computation, LAEDCL has estimated the collection efficiency to be 97.5% for the Ensuing Year as per the Commission’s direction in the Tariff Order for FY 2005-06. However, it fully realizes that this level of collection efficiency is unlikely to be achieved in full during the Ensuing Year. Thus, it prays to the Hon’ble Commission that it grant LAEDCL some leeway in this respect and allow a higher collection loss (of 5% instead of 2.5%) while computing the Annual Revenue Requirement for the FY 2006-07.
Aggregate Technical & Commercial (AT&C) Losses
2.12 Distribution Losses have traditionally been used to measure the efficiency of distribution systems. Distribution losses are computed in terms of the difference between the energy input and the energy billed, as a percentage of the total energy input. This ratio does not reflect collection efficiency achieved by the distribution licensees. This limitation is addressed by using Aggregate Technical & Commercial (AT&C) loss as a measure of efficiency.
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AT&C loss is defined as the difference between energy against which payment has been collected and energy delivered as a percentage to the total energy delivered.
The performance of the licensee should be measured with respect to firm benchmarks i.e. cost of energy delivered and collection, which are neatly captured in AT&C loss.
AT&C losses are computed as follows:
Units Billed Revenue Collected AT & C Loss % = 1 – X x 100 % Units Input Revenue Billed
2.13 Many State Regulatory Commissions have already adopted AT&C losses as the definitive efficiency benchmark. The Government of India also has adopted AT&C loss as an efficiency benchmark for utilities to qualify for the incentive component under the APDRP scheme. LAEDCL would humbly submit to the Hon’ble Commission to move towards an AT&C benchmark in its future tariff orders.
BASIS FOR PROJECTION OF THE ANNUAL REVENUE REQUIREMENT for FY 2006-07
2.14 The approved annual accounts for the FY 2004-05 and the actual data for the first five months of FY 2005-06 (April 2005-August 2005) have been used as the basis for the projection of the expense elements of the Annual Revenue Requirement. The estimated Annual Revenue Requirement for the Ensuing Year FY 2006-07 is presented in the following table:
Table 3: Projected Annual Revenue Requirement for FY 2006-07 (Rs crores) Amount ARR Element
Power Purchase Cost 367.62 Adjusted Power Purchase Cost 385.19 Employees Cost 82.84 Repair & Maintenance Cost 7.69 Administration & General Expenses 7.64 Interest & Financing Charges Interest on Term Loans & Bank Charges 12.56 Interest on Working Capital 4.58 Depreciation 15.84 Provision for Bad & Doubtful Debts 10.45 Interest on Security Deposit 2.05 Total Expenditure with Uniform BST 511.27 Total Expenditure with Differential BST 528.84 Less Misc. Receipts 20.23 Less Income from Trading - Less: Capitalized 6.89 Net Expenditure with Uniform BST 484.15 Net Expenditure with Differential BST 501.72 Return on Equity - Annual Revenue Requirement with Uniform BST 484.15 Net Annual Revenue Requirement with Differential BST 501.72
2.15 LAEDCL requests Hon’ble Commission to consider Adjusted Power Purchase Cost, based on Differential Bulk Supply Tariff (BST) for the purpose of ARR. The Uniform Bulk Supply Tariff has been computed with a view to examining the tariff that would have been
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applicable to LAEDCL had the principle of Uniform BST and Differential retail tariff been followed. It is envisaged that with the flux of time, this will be the ultimate destination of a fully reformed and restructured power sector in the State of Assam.
2.16 Each ARR expense element has been discussed in detail in the following paragraphs.
Power Purchase Cost
2.17 As a result of the unbundling of the ASEB, and the formation of successor entities, the Transfer Scheme notified by the Government of Assam mandates that the ASEB (after separation of the successor entities) would carry out the function of power procurement and bulk supply to the Distribution companies. As a result, the cost of power purchase by the Distribution companies from the ASEB would be affected through a Bulk Supply Tariff (BST).
2.18 Broadly, the Bulk Supply Tariff can be determined on the basis of two broad principles, namely:
(i) Uniform Bulk Supply Tariff: The bulk supply tariff can be treated as equivalent to the Average cost of supply to the relevant distribution company i.e. Bulk Supply Cost divided by total number of units handled by the bulk supplier.
(ii) Differential Bulk Supply Tariff: The bulk supply tariff can be determined on the basis of the paying capacity of the relevant distribution company. This approach is usually followed if uniform retail tariffs have to be maintained throughout the State.
2.19 In order to keep the retail tariff the same for each category of consumers across the State of Assam, LAEDCL prays to the Hon’ble Commission to fix the Bulk Supply Tariff for each Distribution company based on the capacity of the Distribution companies to pay to ASEB as power purchase costs after meeting all revenue expenses, including return on equity capital (although in respect of FY 2006-07, it has not been claimed for the purpose of tariff computation) in deference to the Commission’s directions spelt out in its Tariff Order for FY 2005-06.
2.20 The total Power Purchase cost for LAEDCL is then computed by multiplying the total energy projected to be drawn from ASEB by the BST rate applicable for LAEDCL.
Table 4: Power Purchase Cost
Power Purchase (MU) 1305 Power Purchase Cost (Rs crores) - With Uniform BST (@ 282 paise / KWh) 368 - With Differential BST (@295 paise / KWh) 385
Employee Expenses
2.21 The Employee costs have been estimated after considering the approved annual accounts of FY 2004-05 and the trend of actual expenses in the first 5 months of FY 2005-06, i.e., the current financial year and the projected manpower rationalization for FY 2006-07. The figures mentioned in the table above include the impact of terminal benefits as per actuarial valuations.
2.22 The erstwhile Board has taken a number of steps towards rationalization of manpower in the company, by the redeployment of all excess manpower to areas where they are considered necessary. The board has also taken the assistance of consultants to look at current HR policies and suggest changes in HR policies and manpower deployment strategies. The
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details of manpower rationalization are attached in Annexure I.
2.23 As mentioned earlier, a significant component of the employee costs have been the terminal benefits including leave encashment. The State Electricity Boards (SEBs), constituted under Section 5 of the Electricity (Supply) Act, 1948 were not required to create a separate fund or trust to meet the pension liabilities of the personnel working in the SEBs. Like the State Governments, the SEBs has been meeting the pension and other terminal liabilities from the revenue earnings on a year-to-year basis, without creating or maintaining a Corpus. In other words, the actual pension outflows for the retired personnel of SEBs were being managed from the revenues earned in the year.
2.24 It is proposed that to relieve the new companies of the burden on account of past liabilities, the cash outflows on account of unfunded past liabilities will be met by a combination of Government of Assam support, a special charge on Bulk Supply Tariff and Electricity Duty. In this regard, a charge on BST will be proposed by the Bulk supplier i.e. ASEB.
2.25 From FY 2005-06, the companies have discontinued the practice of paying from current revenues. In view of this, the actuarial study was carried out as on 9 December 2004 to estimate the unfunded terminal liabilities of its existing employees, pensioners and family pensioners.
2.26 The terminal liabilities on account of the future services rendered by the existing employees, the new companies will contribute to the Pension Fund. The Actuarial Valuation carried out by ASEB has estimated the contribution to be at 22.79% of the Total Basic + DA expenses every month.
2.27 In pursuance of Board Resolution No. 18 dated 11-04-05, Chairman, ASEB has constituted the “Board of Trustees of ASEB Employees’ Pension Fund Investment Trust” with 11 Trustees including Chairman ASEB/successor companies as President of the Trust. AEGCL shall act as nodal agency for dealing with all matters relating to pension. Head of Finance, AEGCL shall be the Member and Chief Executive and shall have the authority for all operational activities of the Trust. In a meeting held on 03-11-05 with Member (Finance), discussions on the following issues have taken place: 1. Drawal of monthly pension and family pension by the existing pensioners and family pensioners who were drawing their pension from consolidated Board. 2. Procedure for payment of pension and setting up of Pension Cell under Finance wing of each successor company to administer and monitor the benefits of operation at the company’s end. 3. Recovery of administrative cost from successor companies. 4. Plan for funding terminal benefits. 5. Creation of GPF trust fund. Actions are being undertaken on the above issues.
2.28 The total employee expenses proposed for approval in this ARR petition, including provisioning for terminal benefits is Rs. 82.84 crores for LAEDCL for FY 2006-07. The following table shows the total estimated employee expenses including funding for terminal benefits for the year FY 2006-07.
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Table 5: Employee Expenses (Rs crores) ASEB Consolidated LAEDCL Figures Employee Cost Element 2004-05 2005-06 2005-06 2005-06 2006-07 1st 5 Next 7 Approved months months Total Projected Accounts Actuals* Estimate Salaries 139.15 17.05 24.34 41.39 40.98 Overtime 0.78 - 0.23 0.23 0.23 Dearness Allowance 57.84 8.59 12.27 20.87 20.66 Other Allowances 21.44 2.53 3.55 6.08 6.02 Bonus 0.06 - 0.02 0.02 0.02 Medical Allowances 0.83 0.08 0.12 0.20 0.20 Leave Travel Concession 0.28 0.03 0.54 0.57 0.56 Earned Leave Encashment 5.05 - - - - Workmen Compensatory 0.13 - 0.05 0.05 0.05 Payment Staff Welfare Expenses 0.23 - 0.08 0.08 0.08 Terminal Benefit 63.76 8.67 5.52 14.19 14.05 Less Capitalization 1.50 - - - - Total 288.03 36.95 46.72 83.68 82.84
* Based on actual figures as received for the first 5 months
2.29 Due to the geographical terrain, the employee costs for a utility operating in hilly terrain would be higher and cannot be compared with those in the plains, as it requires more number of employees to service its consumers. In spite of these constraints, LAEDCL has embarked on major manpower rationalization program (natural attrition with essential recruitment) and the results are already beginning to flow in. Anticipating a continuance of this trend, it has been estimated that there will be a net 7.5% reduction in the total employee strength. This is reflected in reduced employee costs in the Ensuing Year even after considering an inflationary impact of about 6% (as was allowed by the Hon’ble Commission through its Tariff Order for FY 2005-06)
Repair and Maintenance Expenses
2.30 LAEDCL has inherited aged assets from ASEB which calls for more Repairs & Maintenance (R&M) Expenses. In addition, Assam being a hilly terrain, upkeep of the distribution network and essential consumer services demands comparatively more R&M expenses than other States. In addition to these, the actual expenses incurred in the past have been severely constrained by the acute cash deficit situation faced by the erstwhile Board. Although a significant increase in R&M expenses was allowed by the Commission, LAEDCL still has a fair way to go in this respect. Under these circumstances, using a historical base or trend runs the risk of restricting R&M expenses for the Ensuing Year, when there is a genuine need of continuing to step up R&M expenses to keep the current asset base in good condition and strive to significantly improve the level of consumer services.
2.31 It is therefore prayed that the R&M expense asked for by LAEDCL be allowed in full to help maintain the momentum that has been gathered towards improving the quality of assets, reliability of the distribution network and quality of consumer services.
2.32 Going by the above principles, the R&M expenses for the ensuing year has been estimated at Rs. 7.69 crores as per the following details:
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Table 6: Repair and Maintenance Expenses (Rs crores) ASEB Consolidated LAEDCL Figures Repair & Maintenance 2004-05 2005-06 2005-06 2005-06 2006-07 expenses 1st 6 Next 6 Approved months months Total Projected Accounts Actuals Estimated Plant & Machinery 4.71 0.41 0.41 0.81 1.05 Buildings 1.09 0.40 0.40 0.79 0.95 Civil Works 0.08 0.02 0.02 0.04 0.05 Hydraulic Works 0.13 0.04 0.04 0.08 0.10 Lines & Cable Networks 8.82 1.70 1.70 3.39 4.75 Vehicles 0.81 0.26 0.26 0.51 0.66 Furniture & Fixture 0.20 0.04 0.04 0.08 0.09 Office Equipment 0.14 0.02 0.02 0.04 0.04 Total 15.98 2.87 2.87 5.74 7.69
Administrative and General Expenses
2.33 The Hon’ble Commission in its Tariff Order for FY 2005-06 has allowed a sum of Rs 4.24 crores towards Administrative and General Expenses, after considering an increase of 6% that comprised an increase of 5% on account of inflation and 1% cushion to take care of other additional items of expenditure. The total A&G expenses proposed for approval in this ARR petition for LAEDCL for FY 2006-07 is Rs 7.64 crores. Table 7 gives the break-up of the total A&G costs under various heads.
Table 7: A & G Expenses (Rs crores) ASEB Consolidated LAEDCL Figures Administrative & General Expenses 2004-05 2005-06 2005-06 2005-06 2006-07 1st 6 Next 6 Approved months months Total Projected Accounts Actuals Estimated Rent, Rates & Taxes 0.86 0.27 0.27 0.54 0.59 Insurance 0.15 0.04 0.03 0.07 0.08 Telephone charge 0.98 0.19 0.19 0.38 0.44 Post and Telegram 0.87 0.23 0.23 0.46 0.53 Legal charge 0.56 0.09 0.09 0.18 0.27 Audit Fee 0.06 0.02 0.02 0.04 0.04 Consultancy charges 0.29 0.06 0.06 0.12 0.13 Technical Fee 0.11 0.03 0.03 0.06 0.07 Conveyance and Travel charge including vehicle 3.35 1.15 1.15 2.30 3.45 hiring Other Expenses 2.95 0.50 0.50 0.99 1.09 Freight 0.91 0.07 0.07 0.13 0.14 Outsourcing of billing & - 0.16 0.16 0.32 0.38 meter reading Other purchase related 1.42 0.20 0.19 0.39 0.43 Exp. Less Capitalized 0.40 - - - - Total 12.11 2.99 2.97 5.97 7.64
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2.34 There has been a substantial increase in expenditure under the head ‘Conveyance and Travel including vehicle hiring charges’. Due to acute shortage of vehicles, normal repairs & maintenance work of distribution network and consumer services spread across hilly terrain was being severely hampered. LAEDCL has therefore formulated and implemented a policy of substantially increasing the availability of vehicles through hiring for the aforesaid routine maintenance and repair work. The company is also exploring the feasibility of hiring mini trucks with hydraulic ladders. In order to support the financial implications of these initiatives, additional resources shall be earmarked to enable hiring of such vehicles with hydraulic ladders for a period of 1 year, to be extended on the performance of the vehicle.
Fixed Assets
2.35 The following table gives the category-wise details of assets for LAEDCL.
Table 8: Fixed Asset Details (Rs crores) LAEDCL As on As on 31-03-2005 As on 31-03-2006 31-03-2007 Particulars of Asset Classes Net Net Projected Gross Accumulated Gross Accumulated Fixed Fixed Gross Block Depreciation Block Depreciation Assets Assets Block
Land & Rights 4.35 - 4.35 4.35 - 4.35 4.35 Buildings 7.29 2.67 4.62 7.29 3.01 4.28 7.29 Hydraulic 2.60 1.22 1.38 2.60 1.31 1.29 2.60 works Other Civil 5.13 1.01 4.12 5.13 1.09 4.04 5.13 Works Plant & 90.59 60.52 30.06 90.59 65.55 25.03 90.59 Machinery Lines & Cable 176.25 136.22 40.02 176.25 146.13 30.12 176.25 Networks Vehicle 4.74 3.56 1.18 4.74 3.87 0.87 4.74 Furniture & 3.22 2.97 0.26 3.22 2.97 0.26 3.22 Fixtures Office 1.85 1.15 0.70 1.85 1.23 0.62 1.85 Equipments Total 296.01 209.31 86.70 296.01 225.15 70.86 296.01
Depreciation
2.36 Depreciation has been computed on the opening Gross Fixed Assets for each class of assets individually for approval as part of the Annual Revenue Requirement for FY 2006-07. For the purpose of depreciation calculation, it has been ensured that the residual Net Block Value for each asset category should normally not be less than 10% of the Gross Block Value. In case the Net Block Value in respect of a particular asset category is already less than or equal to 10% of the Gross Block Value, no further depreciation has been charged. Based on this philosophy, the total depreciation expenditure charged for LAEDCL for FY 2006-07 is estimated to be Rs. 15.84 crores. The category-wise average rates of depreciation together with the depreciation provision for 2006-07 are given in the following table:
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Table 9: Break-up of Depreciation (Rs. crores) Average Rate of Depreciation for 2006-07 Category of Assets Depreciation Land & Land Rights 0% - Buildings 4.71% 0.34 Hydraulic Works 3.59% 0.09 Other Civil Works 1.58% 0.08 Plant & Machinery 5.55% 5.03 Lines & Cable Network 5.62% 9.90 Vehicles 6.58% 0.31 Furniture & Fixtures 7.3% - Office Equipment 4.18% 0.08 Total Depreciation Charges 5.35% 15.84 The details of Gross Fixed Assets, Depreciation and Net Fixed Assets, as per the Hon’ble Commission’s formats are attached in Annexures II, III and IV respectively.
Interest & Financing Charges
2.37 The interest component proposed to be charged and submitted as part of the Annual Revenue Requirement for FY 2006-07 is on account of loans taken for the purpose of capital investments.
2.38 Interest on working capital has been assumed to be Rs 4.58 crores as per the norms approved by the Hon’ble Commission in its Tariff Order for FY 2005-06.
Term Loans and Interest on Term Loans
(a) Allocation of term loans to LAEDCL has been made on an individual basis for various sources of financing based on the capital investments being proposed to be undertaken by LAEDCL. The detail of capital expenditure planned to be undertaken by LAEDCL for FY 2006-07 has been discussed in the section for capital investments subsequently in this petition.
(b) Public Bonds has been allocated to the utility as per the transfer scheme notified by the Government of Assam.
(c) The total amount of term loans and interest computed to be charged on these term loans, based on the proposed capital investment plan, for each individual financing source is given in Table 10.
(d) In this connection, it will be noted that finance and interest charges in respect of those capital assets that will be commissioned during FY 2007-08 or thereafter has been capitalized as interest during construction in terms of the relevant provisions of The Electricity Act, 2003.
(e) In respect of those capital assets that will be commissioned during FY 2006-07, interest and finance charges incurred up to the date of commissioning will be capitalized as interest during construction.
(f) In respect of those capital assets that are likely to be commissioned not later than 31st March, 2006, the interest and finance charges have been claimed to be a permissible item of revenue expenditure and hence, recoverable through tariff
(g) The total interest and financing charges for LAEDCL on term loans proposed to be
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charged as part of the Annual Revenue Requirement for FY 2006-07 is Rs. 5.67 crores.
Table 10: Interest and Finance Charges for FY 2006-07 (Rs crores) Amount Amount Opening Closing Sl. Name of the received redeemed Rate of Interest Balance Balance No. Institution during during the interest charge 2006-07 2006-07 the year year 1 State Govt. 73.08 15.80 1.57 87.31 10.50% 8.42 2 Bond 21.93 - - 21.93 11.56% 2.54 3 Bank Charges - - - - - 1.60 4 Less: Capitalized - - - - - 6.89 5 Total 95.01 15.80 1.57 109.24 5.67
Provision for Bad and Doubtful Debts
2.39 It is a prudent commercial practice to provide for an amount from the receivables added during the year, which ultimately, may turn bad. The present collection efficiency of LAEDCL is estimated to be of the tune of 95%, i.e., there is an addition to the debtors every year, all of which may not be recoverable in the future and would necessarily have to be provided for and subsequently written off. This is also mandated as per Rule 4.2 of Annexure V of the Electricity (Supply) (Annual Account) Rules, 1985.
2.40 The provision towards Bad Debts proposed in this Annual Revenue Requirement is 2.5% on the total expected revenue billed for FY 2006-07 as allowed by the Hon’ble Commission in its Tariff Order for FY 2005-06. However, given the ground realities, it does not appear likely that LAEDCL will be able to achieve this high level of collection efficiency, especially given its consumer profile, past track record and inhospitable terrain. It is therefore, prayed that the Hon’ble Commission permits LAEDCL a higher level of provision for Bad Debts of 5%. The Commission will appreciate that while higher collection efficiencies will continue to be targeted by LAEDCL, achieving them can come only through a gradual change process.
2.41 The erstwhile ASEB has been providing for Bad and Doubtful debt in the past accounts. LAEDCL will continue to make such provisions as required every year. However, the writing off of such arrears demands time and effort and each debtor has to be individually dealt with and accounted for separately. Moreover, if provisioning for bad debts is not being done regularly on an accrual basis, the actual write-off in any future year will, in all likelihood, result in a huge impact on tariff. Hence, LAEDCL requests the Commission to allow a provision that is higher than the sum of Rs. 10.45 crores claimed in the ARR for FY 2006-07 as bad and doubtful debts. It is also making efforts at the field level to ensure regular write offs from this accumulated provision in the future.
Return on Equity
2.42 The Electricity Act, 2003 lays down the financial principles by which the finances of the licensee would be determined, including the return to be allowed to the licensee as part of its annual revenue requirement.
2.43 In view of the poor performance of ASEB as a whole, the Hon’ble Commission in its Tariff Order for FY 2005-06 had not allowed any return on equity. In view of the operational standards that LAEDCL is yet to achieve in terms of system reliability, flexibility, operational efficiency and consumer services, no return on equity has been claimed in this tariff petition. However, LAEDCL prays that the Hon’ble Commission grant at least a part of the return on equity (14%) that it would have been entitled to (Rs 8.73 crores) as it will go a
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long way in generating internal accruals that are so necessary to finance major distribution and consumer welfare schemes. This becomes all the more critical as LAEDCL is unlikely to receive any significant financial support from the Government of Assam and thus, will need to take care of its financial health by itself.
2.44 A component of return is important for the newly formed companies to bring in a sense of commercial orientation in the licensee, which under the Board setup had its tariff adjusted automatically to allow a net 3% return on the Net Fixed Assets as per Section 59 of the Electricity (Supply) Act, 1948.
2.45 The Andhra Pradesh Electricity Regulatory Commission (APERC), in its Tariff Order has clearly stated that foregoing reasonable return was neither in the interest of the licensee nor with the consumers.
APERC in Para 707 of its Tariff Order for FY05 has viewed that, “the Commission allowed the Reasonable Return as, in the opinion of the Commission; it was not in the interest of either the consumer or the Licensee to forego the Reasonable Return. The Commission wish to emphasize that one of the prime objectives of Reforms undertaken by the State in the Electricity Sector is to bring in a Commercial Orientation in the methods of operation as well as in the general approach to management decisions by the unbundled entities. The Commission considers it necessary to provide for the Reasonable Return in the calculation of the Revenue Requirement to reinforce this commercial orientation and hopes that this would act as a motivating factor and a morale booster at all levels leading to more operational efficiency all round.”
LAEDCL would like to mention that in case of AP, even though APTRANSCO didn’t ask for a reasonable return, APERC allowed reasonable return on the above grounds.
Other Income
2.46 Other income for the purpose of calculation of the Annual Revenue Requirement includes meter rental, delayed payment surcharge, miscellaneous charges from consumers as well as income on account of interest on loans & advances to employees and investments in the form of fixed deposits.
2.47 Other Income for LAEDCL for FY 2005-06 has been estimated based on information received in respect of that year. Other Income has been projected as Rs. 20.23 crores for LAEDCL for the Ensuing Year FY 2006-07. The detailed break-up of estimated Other Income is as shown in the following table:
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Table 11: Other Income (Rs crores) ASEB Consolidated LAEDCL Figures Other Income 2004-05 2005-06 2006-07 Approved Estimated Projected Accounts Interest on staff loans and advances 0.01 0.002 .002 Income from investment 7.46 0.90 0.95 Interest on loan & advances to licensees - - - Delayed payment charges from consumers 5.51 1.76 1.85 Rental from meters 8.16 5.79 6.07 Interest from banks (other than on fixed - - - deposit Income from trading - - - Reconnection / Disconnection Charges 2.14 0.22 0.23 De-pooling of PGCIL Transmission Charges 11.22 - - Miscellaneous receipts 0.94 0.74 0.77 Miscellaneous Recoveries 27.75 9.87 10.36 (Transformer etc.) Total 63.19 19.27 20.23
T3: Investment Plan for FY 2006-07
3.1 LAEDCL is making critical and urgently needed investments in its distribution network to strengthen an overloaded system and to enhance its reliability to meet contingencies. This proposal for approval of the Annual Revenue Requirement for FY 2006-07 also envisages recovery of these planned and on-going investments.
3.2 The following section deals in detail with the various capital investment programmes ongoing at LAEDCL and those proposed for the Ensuing Year FY 2006-07.
Accelerated Power Development and Reform Program (APDRP)
3.3 The APDRP scheme was introduced by GoI to achieve reduction of T&D loss, improve reliability and quality of power and to increase net power availability. It aims at strengthening and improving the sub-transmission and distribution network by setting up of new 33/11 KV sub-stations, augmentation of Distribution transformers, replacement of conductors, up-gradation of feeders, system metering, 100% consumer metering and computerization of billing, capacity building etc.
3.4 The APDRP project is designed to address to the above mentioned issues with the ultimate objective of reducing losses and improving quality of power supply. Improvements of Sub- Transmission & Distribution System will emphasize on
• Reducing Losses and bringing viability to the State Electricity Board • 100% metering & energy audit • Improvement in the quality of supply • Application of Information Technology in Revenue & Operation • Outsourcing of Distribution Activities
Government of Assam, Ministry of Power has allotted fund to Assam in a very generous
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manner. They provide 100% fund (of which 90% is grant and 10% loan) for whole of APDRP schemes. Works under the schemes cover 14 Electrical circles of Assam.
3.5 In the FY 2006-07, an amount of Rs. 371.34 crores under APDRP program is proposed as the outlay for all the Distribution companies. Out of the total proposed outlay of FY 2006- 07, Rs. 143.38 crores have been earmarked for LAEDCL. Table 12 below provides a snapshot of the proposed APDRP funding in LAEDCL.
As per the Tariff Order issued by the Hon’ble Commission, all unmetered consumers are to be converted to metered categories immediately. However, all the meters cannot be purchased under the APDRP schemes therefore a sum of Rs. 1.12 crores is required separately to purchase the meters. This amount has not been included in the ARR for the ensuing year. It is therefore prayed to the Hon’ble Commission to grant the above amount so that meters can be procured immediately to convert unmetered consumers to metered category under LAEDCL.
Table 12: Proposed Plan Outlay for LAEDCL under APDRP for FY 2006-07 (Rs lacs) Funding TOTAL LAEDCL Development Schemes Agency / Source of Grant Loan Total Grant Loan Funds Centrally Sponsored Schemes Guwahati-I (Single package S.I) APDRP 3,580 397 3,978 3,580 397 Kokrajhar (Single package S.I) APDRP 1,189 132 1,322 1,189 132 Mangaldoi (Single package S.I) APDRP 1,100 122 1,223 1,100 122 Rangia (Single package S.I) APDRP 2,831 315 3,145 2,831 315 Bongaigaon (Single package S.I) APDRP 1,670 186 1,855 1,670 186 For Guwahati-II, Jorhat & Dibrugarh - Feeder Augmentation APDRP 468 52 520 156 17 - R&M of 33/11 KV sub. Stations APDRP 1,211 135 1,345 404 45 - R&M of Distribution Transformers APDRP 1,380 153 1,533 460 51 Consumer metering For Guwahati-I, Rangia and Bongaigaon APDRP 45 5 50 23 3 For Mangaldoi and Kokrajhar APDRP 45 5 50 15 2 Computerisation of Billing For Guwahati-I, Rangia , Bongaigaon,Mangaldoi, Kokrajhar APDRP 54 6 60 25 3 Computerisation of billing ( Data entry, Indexing, training, customization) For Guwahati-I, Rangia , Bongaigaon,Mangaldoi, Kokrajhar APDRP 225 25 250 102 11 ASEB's scope of work procurement of land for new S/S, renovation and repairing of 33/11 KV control rooms, land filling, construction of approach road, procurement of oil; filtration machines, T&P etc. APDRP 4,050 450 4,500 1,350 150 Total APDRP Schemes 17,848 1,983 19,831 12,904 1,434
Non Lapsable Central Pool of Resources (NLCPR)
3.6 The NLCPR fund outlay is being used for critical augmentation of the 33/11 KV Sub Stations, construction of 33 KV lines, and for construction and augmentation of distribution Sub Stations. For the FY 2006-07, an amount of Rs. 100.98 crores (Rs 90.88 crore Grant & Rs 10.10 crore Debt) under NLCPR program is proposed for the whole of Assam, out of which Rs. 7.50 crores is the proposed outlay for LAEDCL for FY 2006-07. Some of the important schemes for FY 2005-06 are shown in the following table:
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Table 13: Key NLCPR Schemes
(Rs lacs) Funding TOTAL LAEDCL Development Schemes Agency / Source of Grant Loan Total Grant Loan Funds Centrally Sponsored Schemes Construction of New 33 KV line from 132/33 KV Dhaligaon Sub-Station to 33/11 KV Kokrajhar Sub-Station NLCPR 400 44 444 400 44 Construction of separate 33 KV line 132 / 33 KV from 132/33 KV Matiabag Sub-Station to 33 / 1 KV Ambagan Sub-Station and revamping of 33/11 KV Ambagan Sub-Station NLCPR 275 31 306 275 31 Total Centrally Sponsored 675 75 750 675 75 Schemes (NLCPR)
Rural Electrification
3.7 As per 1991 census, there are 24,685 numbers of villages in the State of Assam out of which 19,163 numbers of villages (77.63%) have been electrified as on 31 August 2004. This leaves 5,522 numbers of villages yet to be electrified. Of this, however, only 3,003 numbers of villages can be accessed by grid electricity. Electrification of these villages, termed as non-remote villages, are being taken up under two major schemes of the Central Govt., namely PMGY and RE (MNP), which are already under implementation.
Rural Electrification (Minimum Needs Program)
3.8 RE (MNP) scheme in Assam was initiated in the year 2000-01, with a target of covering 398 villages for intensification in that year, with an outlay of Rs. 13.26 crores. Since the start of this scheme in FY01, electrification of a total of 92 virgin villages and intensification of 1,755 villages has been covered under RE (MNP) schemes so far. In FY 2006-07, an amount of Rs. 60 crores is proposed as outlay under RE (MNP) Scheme towards Rural Electrification for the entire State of Assam as a whole, out of which Rs. 24 crores is proposed to be allocated to LAEDCL. The details are as shown in the following table.
Table 14 : RE (MNP) Scheme ( Rs crores) RE (MNP) schemes Amount
Electrification of virgin villages 2.85 Intensification of Electrified villages 21.15 Total 24.00
Prime Minister Gramudyog Yojana (PMGY)
3.9 A total amount of Rs. 15.50 crores is proposed as outlay for the Annual plan 2006-07 for Rural Electrification works for the State of Assam as a whole under this scheme, as the total project cost for electrification of 74 virgin villages and intensification of 161 electrified villages. In the areas of LAEDCL, an amount of Rs 6.20 crores has been earmarked towards electrification of virgin villages and intensification of villages. The details are shown in the following table.
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Table 15: PMGY Schemes ( Rs crores) PMGY schemes No of Villages Amount
Electrification of virgin villages 30 1.95 Intensification of Electrified villages 64 4.25 Total 94 6.20
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
3.10 An outlay of Rs 120 crores has been proposed to be earmarked for village electrification under RGGVY for FY 2006-07 out of which Rs 60 crores (Grant Rs 54 crores and Loan Rs 6 crores) has been envisaged for LAEDCL. The details are mentioned in the following table
Table 16: Electrification under RGGVY Scheme
District No. of Villages No. of Habitations
Goalpara 54 707
Nalbari 5 513
Total Villages / Habitation 59 1,220
Tribal Sub Plan (TSP)
3.11 The approved allocation for TSP in the 10th Plan is Rs. 8.25 crores for all the Distribution companies put together. An amount of Rs. 1.38 crores is proposed for the Annual plan 2006- 07 for electrification of Scheduled Tribe (ST) villages in whole Assam, out of which Rs. 0.41 crores has been earmarked for electrification of ST villages in LAEDCL.
Scheduled Caste Component Plan (SCCP)
3.12 The approved allocation under the SCCP in the 10th Plan is Rs. 3.60 crores for all the Distribution companies in the State. An amount of Rs 1.08 crores is proposed for the Annual plan 2006-07 for electrification of SC villages for the whole of Assam, out of which Rs. 0.32 crores has been earmarked for electrification of SC villages in LAEDCL.
ADB Financed Schemes
3.13 The total allocation for ADB for FY2006-07 is Rs.51.44 crores (11.22 million dollars) for Distribution Schemes. An amount of Rs 21.60 crores (4.71 million dollars) is being proposed for LAEDCL for 33/11 KV substation augmentation, and for putting in place metering and communication systems.
Counter Part Fund for ADB Funded Schemes
3.14 For the year 2005-06, an amount of Rs. 88.80 crores (19.37 million dollars) is proposed to be included in the Annual Plan as the State’s counterpart fund for the ADB schemes, out of which the share for LAEDCL is Rs 11.62 crores (2.54 million dollars)
STATE PLAN FUND
Distribution Line and Sub Station Augmentation
3.15 LAEDCL’s existing Distribution network demands massive modernization work to provide quality, uninterrupted and reliable power to consumers. In the past, due to severe paucity of
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funds, the works carried out have been very insignificant. The APDRP program alone cannot meet the capital investment requirements and there is still an urgent need of fund for Normal Development works, System Improvement and Augmentation of the system, which is a continuous process in the distribution sector to meet the increasing demand from consumers. These works need to be implemented with the support from the State Plan Fund. An amount of Rs 2.05 crores has been envisaged for above distribution system strengthening as a loan under State Plan Schemes.
Disaster Management
3.16 Natural calamities like flood and storm cause heavy damage to the electricity transmission network and to the distribution lines and sub-stations, which is more frequent in Assam when compared to other States. There is an urgent requirement of funds in the form of plan assistance for the restoration of these lines and sub-stations. A total outlay of Rs. 0.56 crores is proposed for this purpose for the Annual Plan 2006-07, out of which Rs 0.24 crores are planned for LAEDCL.
T4: Efficiency Improvement Initiatives
Energy accounting –Installation of electronic meters at 11KV feeders
4.1 In the LAEDCL, there are a total of 254 11KV feeders. LAEDCL has taken initiatives in installing electro static meters at all 11 KV feeders for proper energy accounting. To supplement these efforts, the existing electronic meters are being checked for accuracy and information content. Accurate estimates for Technical and Commercial losses are the initial steps for loss reduction. With the electronic meters in place in all the feeders, accurate estimates for energy losses in the system can be made. LAEDCL has already done 100% feeder metering.
Table 17: Feeder Metering Status
No of 11KV feeders in the LAEDCL With electronic meters Circle
Mangaldoi 32 32 Rangia 58 58 Bongaigaon 34 34 Kokrajhar 35 35 GEC-I 59 59 GEC-II 36 36 Total 254 254
Efforts for controlling 11 KV Interruption
4.2 Interruptions in the distribution feeders particularly to that of Industrial consumers cause revenue loss to the utility. These consumers are being billed above the average cost of supply and hence it is mandated that these consumers are given proper quality of power. The objective behind reforms is not limited to financial viability of the sector and the licensees only, but also in providing quality power at affordable prices. This is also envisaged in the Power Policy 2003 for Assam.
4.3 The interruptions at 11 KV feeders of the LAEDCL are mainly triggered by grid mis- management or by breakdowns incumbent on the feeders. It is crucial that such interruptions should exclude industrial feeders. Industrial consumers invariably cite frequent interruptions of power as the major reason that force them to move to their own captive generation. The licensee is convinced that it is essential to ensure uninterrupted and quality power to these
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high value consumers and in doing so, would not only be fulfilling its obligations under the license condition, but would also increase its revenue without any significant investments. As an initial step towards fulfilling this objective, LAEDCL is monitoring and analyzing all feeder trippings in its system.
Loss Management
4.4 While high distribution, metering and pilferage losses are general malaise of power distribution systems; the problems need to be dealt with in a systematic, prioritized and phased manner. This will ensure that the ‘low hanging fruits’ can be picked and concrete results are achieved at the earliest.
4.5 The objective is to analyze the relative impact of specific loss reduction initiatives on the loss numbers, lessons learnt and be able to arrive at detailed cost-benefit estimates for the eventual rollout of selected loss reduction initiatives across ASEB.
There are number of loss reduction steps to be tried out in the selected sub-division, few of them are as follows:
4.6 Introduce a rotation procedure for meter readers to reduce the possibility of connivance with the consumers:
All Distribution Companies have already introduced this system.
4.7 Implement procedure for validation or sample checks of meter readings: This is also being implemented by each Distribution Company.
4.8 Replacement of electro-mechanical meters by electronic meters is an ongoing program: These meters, in conjunction with CMRI (Common Meter Reading Instruments), are significant tools to reduce commercial loss due to theft.
i. Increasing appreciation of the full potential of the data that can be downloaded from electronic meters. This will need to be supported by a focused and well-structured training program, the details of which may be worked out in consultation with relevant officials of ASEB and the meter suppliers. ii. Proper analysis of the data downloaded to unearth information about the consumer that may not be obvious at first glance. Active participation of the IRCA concerned will be required to determine the various business rules and algorithms that can be used in this respect. This is particularly important in analyzing the possible tampering efforts made by the industrial consumer, as interpreted by the electronic meter. iii. Standardization of meter reading instruments and software with a view to demonstrating the following benefits of the same: a. Data capture b. Ease of data download c. Uniformity of data download d. Consequential ease of analysis e. Capacity building f. Pilferage detection g. Reduction of time required for metering, billing and collection (billing cycle)
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h. Reduction in Aggregate Technical & Commercial (AT&C) losses iv. LAEDCL is replacing conventional electromechanical meters with Static Programmable meters, funded under various APDRP and ADB schemes. In addition to improving the accuracy and facilitating direct meter reading for the purpose of billing, these meters can be used to analyze the consumption patterns of the consumers, CT/PT reversal, monitoring quality of supply and most significantly, detect any tampers. These meters, in conjunction with Meter Reading Instruments (MRI), are an important tool to reduce commercial loss on account of theft. v. LAEDCL expects to roll out the process of MRI downloads and its analysis for HT consumers in its entire area of supply in a phased manner. Through this initiative it expects not only to reduce commercial loss but also improve efficiency in distribution processes, thus providing better service to its customers.
4.9 The load on distribution transformers should not exceed 80% of the transformer capacity to provide a safe operating margin: In case it is exceeded, the load should be transferred to adjacent distribution transformers that are under-loaded. If it is not possible, then either a new transformer near the load centre of higher capacity should be installed or the capacity of existing transformer should be augmented to meet the existing and future load demand. Therefore, regular checking of load on the distribution transformer is a must in order to reduce the incidence of burnt-out distribution transformers. Discoms are taking care of these problems being faced by the field staff.
4.10 Maintain and adhere to a regular schedule for transformer oil test, oil filtration and top-up, and overall maintenance of distribution transformers: Preventive maintenance and augmentation of Distribution Transformers (DTRs) is critical to provide quality supply to the consumers. LAEDCL has approximately 6,967 DTRs and their failure and subsequent maintenance leads to not only additional repair expenses, but also, more significantly, potential revenue loss. The major tasks that are to be carried are outlined below: a) Identify the various classes of distribution transformers. b) Define a scientific asset numbering scheme that will be used to identify uniquely every asset. c) The distribution transformers need to be checked for inspection and maintenance purposes at suitable intervals: • Oil level and condition • Temperature rise of oil / winding • Breather’s silica gel – especially after the rains • Cooling system • Supports • Earth resistance • Rod gaps cleaning and surface checking • Condition of lightning arrestors d) Prepare a Maintenance History Register showing the following details in respect of asset:
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• Asset identification number (in line with a pre-determined asset numbering scheme. Until the asset numbering scheme is not finalized, this may be left blank) • Date of acquisition of the asset • Date when Maintenance Task 1 was last carried out • Date when Maintenance Task 1 is due to be carried out next • Date when Maintenance Task n was last carried out • Date when Maintenance Task n is due to be carried out next • Probable causes of failure of distribution transformers
Cause Suggested remedy Overload Reduce load; or take permanent measures to augment capacity if continuous overloading is involved Low oil level Fill to proper level Dirty oil Filter oil to remove dirt, sludge or carbon; or replace dirty oil with fresh oil. Clean core, coils and terminal board with filtered oil Short circuited core Test for exciting current and no load loss; if high, inspect core, remove and repair; check core bolts, clamps and tighten; check insulation between laminations; if welded together, send to repair shop for repair or replacement Metallic part ungrounded, Check clamps, core and other parts normally grounded loose connection for loose or broken connection, bolts fallen out etc., tighten loose clamps, bolts, and nuts; replace missing ones. Lightning Check lightning protection; arrestors, connecting lugs, earthings etc. Dirty bushing Clean porcelain; check source of dirt
Action Plan for Preventive Maintenance of Distribution Transformers in Mirza Electrical Sub-Division has been prepared and proposed to be implemented by February, 06. After its successful implementation, this activity will be rolled out in other Sub-Divisions of Discoms.
4.11 Improve quality of repaired transformers by ensuring that vendors have proper equipment and tools required for quality repair and testing:
This is being done by each Distribution Company.
4.12 Upgrade/modify distribution network to LT-less distribution network: • As per the present practice consumers of various categories are by and large fed by LT distribution network at 400/230 V level. Overtime with the growth of power system the major investments were made in power generation and then in transmission system, with the result the distribution network became weak and archive. The poor quality of electricity supply, low voltage and breakdown etc has become the day to day problem of power utility. • To get rid from this problem, augmentation of distribution network is imperative. In order to supply quality electricity to consumers with proper voltage and frequency, reduce distribution loss as well as prevent theft of electricity, LT less distribution network system is required to be adopted. This system is also called High Voltage Distribution System (HVDS).
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• In this system single phase or three phase 11 KV lines are laid in place of LT lines and same size of 1 phase or 3 ph Distribution Transformer (DTR) (15 KVA to 75 KVA/11/0.4 KV) are installed at suitable places depending upon load density. From LT side (400V or 230V) of distribution transformers service connection to different categories of consumers (domestic, commercial, industrial etc.) can be given The cluster of consumers (domestic, commercial etc.) fed from this small size of DTR shall be made responsible for checking their industrial loads by putting Miniature Circuit Breaker (MCBS) and being vigilant in monitoring the loading (or overloading) of their transformer. • By this method, the incidence of burnt out transformers shall be reduced, proper voltage will be maintained and the unscrupulous consumers cannot tap or take direct connections from overhead LT Lines, thereby reducing theft of electricity. • Hence HVDS system is technologically inevitable for the distribution companies to sustain and grow in era of Liberalization and Globalization. Making the distribution companies modern, globally competitive and commercially viable organization will depend largely on the new technological innovations, modern & effective preventive maintenance practices of distribution system. • Implementation of LT less distribution network/High Voltage Distribution System will help in supply of uninterrupted and improved quality of power supply to the consumers, which in turn will reduce loss (Technical & Commercial) and subsequent revenue increase to the company on one hand and on the other hand it will reduce the huge maintenance cost of the LT distribution. All these cost advantages and revenue enhancements will over a period of time make the distribution company a commercially viable unit. • Action Plan for implementation of LT less distribution network utilizing existing 11 KV Garpandu feeder of Jalukbari Sub-Station under jurisdiction of Jalukbari Electrical Sub- Division is under final stage of preparation and will be implemented during FY 2005-06. After its successful implementation, this system will be rolled out in Sub-Division of other Distribution Companies.
4.13 Prioritise disconnection based on amount and/or age of arrears: Different kinds of disconnection notices are as follows; a. Normal disconnection notice. These notices are sent to the consumer, regardless of the overdue outstanding amount, as a matter of routine if the records show that the previous month’s bill has not been paid within the prescribed due date. As neither the amount involved is too high nor the age too old, these notices have the lowest priority in terms of active follow-up by the utility. b. Cut-off month disconnection notice. These notices are sent by the utility to all consumers, regardless of the overdue outstanding amount, whose oldest outstanding bill relates to an accounting month that is older than a pre-determined cut-off month. c. Special notices. These notices are sent by the utility to all consumers, who satisfy either or both of two criteria – the aggregate overdue outstanding dues are in excess of a specific threshold figure (say Rs 5,000) or whose oldest outstanding bill is prior to a specified month – say March 2005. In view of the large amounts involved and/or the age of the outstanding bills, these notices are accorded the highest priority in terms of active follow-up by the utility. d. Stay Order from court against disconnection notice. Sometimes, it is found that the large and high value consumer obtain stay from court of law against the disconnection notices, with the results heavy amount of arrears (in lacs of Rs) are kept mounting on them and the SEB has to face revenue loss. Such types of consumer may be dealt keeping in view the legal aspects if the stay is for the disputed bill of particular month or till the settlement with ASEB is accomplished or stay vacated by the ASEB. e. One-time Settlement: It is generally seen that due to some reason or other the high value consumer could not make the payment of the bill, in that case the payment
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schedule may be made in installment (2 or 3, depending upon the value) with the approvals from the Management of company. In some cases, they should be exempted from payment of surcharge arrears. Distribution Companies are attempting to apply the aforesaid guidelines in order to rollout the same across respective areas
4.14 Ensure that the meter capacity is commensurate with the contracted load to reduce the possibility of erroneous meter registration: As is well understood, electro-mechanical meters tend to not record the consumer’s energy consumption in full if the current passing through the meter at any point of time is substantially less than rated capacity of the meter. For example, if a current of 2 Amperes is being drawn through a 25 Ampere meter, it is likely that the meter will not register any advance at all – thereby leading to a significant under-registration on the meter if a similar pattern continues for significant periods of time. a) Identify those consumers whose supply appears to be controlled by meters of unduly large current carrying capacity. In case of consumers whose consumption is recorded through electro-mechanical meters, this is proposed to be done by using the consumer’s load factor [monthly energy consumption / (contract load * number of hours in the month)] as a surrogate indicator for the actual drawal of current. In case of consumers whose consumption is recorded through electronic meters, this is proposed to be done based on the consumer’s actual drawal of power as recorded by the meter itself. However, if this data is not made available for analysis due to whatever reason (incomplete download of data from the meter, software incompatibility between the meter and the meter reading instrument, inability of the receiving application to read/analyse the consumer’s consumption pattern etc.), the method outlined in the previous paragraph will be adopted. b) Prepare look-up tables for different categories of consumers defining what size or capacity of meter should be installed for what range of connected / contract load, as the case may be. Different look-up tables will be required for different consumer categories as not all consumer categories have similar consumption patterns. However, it needs to be understood by all concerned that this table is only an indicative guide and in exceptional cases, individual judgment and discretion will continue to be required. In this connection, it needs to be mentioned that different look-up tables will need to be prepared in respect of electro-mechanical and electronic meters as the operating boundaries for meters of a similar rated capacity will be appreciably different. Each Discom is seriously thinking to implement this type of approach to eradicate the possibility of erroneous registration.
4.15 Introduce spot billing for domestic, commercial and small & medium industrial consumers In this system, Hand Held Machines (HHM) is used to record the consumption of energy consumed through the individual’s energy meters. The bill is generated then and there by HHM and handed over to the respective consumer for payment through cheque and if not possible, then by cash at the collection centre within say, 7 days. The recorded meter reading is subsequently downloaded at the respective computerized billing centre. Plagued with the problem of staff shortage engaged in revenue collection, spot billing needs to be carefully implemented to reduce the risk of failure due to undue complications and technical problems in the system. Spot billing system is basically being proposed to be introduced to eliminate differences between the consumption registered on the meter and that reflected in the consumer’s bill, whatever is the reason.
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Advantages of HHM • Reduction of revenue cycle time by combining many activities into one • Eliminating paper work except the bill to the consumer • Meter reading, bill generation, bill delivery, cheque collection and cash receipt combined into a simple transaction • Digital record of bill distribution • Complete consumer database built anew after survey • New route mapping incorporated into the database • Database updated daily Few HHMs have been purchased by the respective Distribution Companies on a trial basis and this system is being introduced gradually in the selected Sub – Divisions.
4.16 Replace conductors by Aerial Bunched Conductors (ABC): Most of the faults in overhead power supply systems occur due to failure in transmission lines, whether these are HT or LT, resulting in immense loss and inconvenience to consumers. The main weakness of overhead lines are that its power carrying conductors are bare. To overcome the above deficiency, ABC systems have been introduced at many places for both HT and LT systems. Principally, the system is a compromise between insulated power cable systems and bare overhead conductor systems. As far as basic construction goes, there are three or four power carrying conductors suitably insulated and laid around a bare or insulated weight-carrying conductor, which also serves as earth/neutral conductor. The cable is then hung on transmission poles/towers suitably. Since the cores are insulated the chances of faults is reduced. While it lacks the mechanical strength and safety of underground cables, the very fact that it is hanged overhead enables it to avoid mechanical abuses that an underground cable is normally subjected to. In the ABC system, the insulated aluminum conductors are twisted around a high strength aluminum alloy bear wire, which carries the main weight and also serve as the earth-cum-neutral wire. The phase conductors are not under tension. The insulated phase conductors (with additional street lighting conductor, if provided) shall be twisted around the Bare Aluminum Alloy messenger wire, which shall take all the mechanical stress. The messenger wire shall also serve as the earth- cum neutral wire. ABC is a novel concept for O/H Power distribution. When compared to the conventional bare conductor over head distribution system, ABC provides higher safety and reliability, lower power losses and ultimate system economy by reducing installation, maintenance and operative cost. This system is ideal for rural distribution and is especially attractive for installation in difficult terrains such as hilly areas, forest areas, coastal areas etc. ABC is also considered to be the best choice for power distribution in congested urban areas with narrow lanes and by-lanes. In developing urban complex, ABC is the better choice because of flexibility for rerouting as demanded by changes in urban development plan. As this system is very capital intensive, it is proposed to implement this only in a selected Sub-division like Sonapur Electrical Sub-Division. The action plan including cost benefit aspect is under preparation. After its successful implementation, this system will be rolled out in other part of Distribution Companies.
4.17 Introduce Automated Meter Reading to reduce metering errors:
Automated Meter Reading (AMR) is the remote collection of consumption data from the consumer’s power utility meter over telephones lines, radio systems or power line carriers (PLC). For example, Singapore Power uses a telephone line or GSM mobile telephone interface with a Remote Terminal Unit (RTU) that reads the meter (it records and stores pulses generated by the electricity meter) each day. Colorado Springs Utilities deploys AMR
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using wireless radio transmitter through which the customer meters are read and data transferred into the billing system. AMR helps to: • Improve billing efficiency • Eliminate the need for estimating meter readings • Shorten the revenue cycle time – from consumption to billing and collection • Improve load management • Check tampering and other leakages before it becomes a major problem • Increase the return on investment on a meter • Provide remote flexible tariff • Provide capacity to remotely connect or disconnect the power connection
AMR comprises the following three elements: • Automated reading of meters • A communication link between the meters and the centralized (or decentralized) billing system • A centralized (or decentralized) data store in respect of consumption patterns
Each AMR meter is provided with a transmitter / receiver module. It can read meters via a Public Switched Telephone Network (PSTN), switched cellular, General Packet Radio Service (GPRS), Global System for Mobile Communication (GSM), cellular connections etc. All the three services are widely available in the country. About 10% of the AMR devices installed worldwide communicate by telephone and 5% by PLC. Radio, being the least expensive, is used in the remaining 85%. In the US, the radio band is shared with many users and spread spectrum modulation technique is encouraged. This system has been adopted in India. Certain environmental factors may require special considerations depending upon where the meter is located. There may not be clear path for the radio receivers in handheld computers, vehicles & pole mounted units. Repeaters can be used to supplement such installation and are often needed in apartments, high-rise buildings or density populated city areas. AMR software can have added value function such as supervision of the meters, operational conditions, detection of fraud attempts, consumer load profiles as per standard: IEC 6206- 31-DATA exchange for meter reading, tariff and local control. Distribution Company is thinking to introduce AMR system as a pilot project during FY 2006-07.
Customer Care Processes
4.18 LAEDCL recognizes that it needs to strengthen the customer orientation and provide better services to its customers. It is crucial to its commercial success as industry reform continues and customer choice is introduced.
4.19 The Hon’ble Commission has already issued the “Guidelines for Redressal of Consumer Grievances”. This provides the licensee with the Commission’s expectations for ASEB/successor entities with regard to the processing, monitoring and escalation of complaints/disputes with consumers.
4.20 In view of the above, LAEDCL has already started review and redesign of its processes (facilities like drop boxes for payment through cheque have been initiated in some areas).
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Some of the key processes that are under review and redesign; handling applications for new connections, handling customer grievances that will satisfy the Commission’s requirements; and improvements to the current payment receiving facilities.
4.21 It also plans to improve the infrastructure capabilities to better respond to customer complaints and put up a system in place to capture the data requirements and to regularly monitor the complaints as per AERC guidelines.
Performance Incentive Scheme
4.22. LAEDCL has commenced a trial Performance Incentive Scheme implemented w.e.f 15 October 2005 for the remaining six months of FY 05-06 (01-10-05 to 31-03-06).The PIS trial has initially been implemented with staff in direct operational business units, at the transmission division/sub-division level. The purpose of this limited trial is to acquaint staff to the nature of the PIS, and to allow senior management to fine-tune this scheme prior to wider implementation. The rationale of selecting front-line operational staff for this PIS trial is twofold: • Improved performance in direct operating units will have the most immediate impact on improving overall corporate business performance; and • Setting performance indicators for such units is relatively easier because of the direct correlation between local performance indicators and overall company performance indicators.
4.23 In order for this trial Performance Incentive Scheme to be implemented by the aforementioned date, and the following aspects have been taken in to consideration 1. Review the recommended performance indicators and their respective weightings, and if so desired, suggest amendments to these indicators/weightings. 2. Set the target for each performance indicator, by Division and Sub-Division. The target for each performance indicator should represent a reasonable improvement on current performance. 3. The maximum achievable result for each performance indicator, by Division and Sub- Division. This should represent the best level of performance that is possible for the remainder of this financial year, given current resource and other constraints.
4.24 This pilot Performance Incentive Scheme is applicable for operational and maintenance personnel only at the sub-division/division level, up to the Superintending Engineer level. These employees will be eligible for an additional incentive payment up to a maximum of 15% of six-month basic salary. Based on the success of this pilot scheme, a wider Performance Incentive Scheme involving a greater proportion of LAEDCL employees may be introduced in the future.
4.25 The pilot Performance Incentive Scheme will be based on performance measured by the following key performance indicators:
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Maximum % Actual Performance Indicator Weight Target Achievable Payable Result Result 1. New Service Connections per 20% Month 2. Billing Efficiency 40% 3. Collection Efficiency 40% Total 100 % Annual Basic Salary (Rs.) Max. Performance Payment (%) Max. Performance Payment (Rs.) ACTUAL PERFORMANCE PAYMENT (Rs.)
The Performance Incentive scheme will be calculated based on the formula below, added for each of the three above performance indicators:
(Actual Result – Target) Weighting % x 6 months 15% x x x (Maximum Achievable Result – Target) (as above) Basic Salary
Where: • Target = the minimum expected performance by the business unit based on the Company Business Plan and Budget. • Maximum Achievable Result = maximum performance that can be reasonably achieved for this indicator, given the time available and the existing technical and commercial constraints. • Actual Result = the actual result reported for the period.
Each sub-division/division will have individual targets set, as appropriate for each location. For staff to achieve the performance incentive payment, actual performance must exceed the targets set.
From the 2006-07 financial year it is envisaged that the PIS be based on the complete approach including a weighted average of company and individual performance indicators. The impact of payment of incentive to the eligible employee has not been taken in the ARR submission as this will be off set by the gain due to efficiency improvement in the distribution system. T5: Revenue from Charges and Proposal for Tariff Revision
Revenue from Existing Charges
5.1 The Retail Supply Tariff (RST) currently being charged by LAEDCL to its consumers was approved by the Assam Electricity Regulatory Commission in its Tariff Order dated 27 May 2005.
5.2 The total revenue expected based on the existing tariff for FY 2006-07 is Rs. 418.14 crores. The category-wise billing of charges, based on the existing tariff and sales projected by LAEDCL for FY 2006-07 is given in the following table.
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Table 18: Category-wise Revenue based on Existing Tariff (Rs crores) Revenue from Existing Tariff Category Energy Charges Fixed Charges Total Charges Domestic 148.94 15.37 164.31 Commercial 66.96 19.60 86.56 General Purpose Supply 12.71 4.31 17.02 Public Lighting 2.05 0.27 2.32 Public Water Works 7.25 1.85 9.10 Agriculture 2.27 1.07 3.33 Industries - Rural 2.51 0.90 3.41 - Urban 49.95 9.87 59.83 Bulk Supply - Government Educational 5.62 0.97 6.59 Institutions - Others 42.62 6.34 48.96 Tea, Coffee & Rubber 7.28 4.50 11.78 Oil & Coal 2.92 1.13 4.05 Temporary Supply - 0.22 0.22 Revenue from sale to LAEDCL 351.08 66.39 417.47 consumers Employees consumption 0.67 - 0.67 Board’s establishment - - - Total Revenue 351.75 66.39 418.14
Detailed category wise revenue from existing tariff, as per the Hon’ble Commission’s format, is given in Annexures V and VI.
Tariff Revision Proposal
5.3 LAEDCL is filing for an approval of its proposal for revision of tariffs driven by the following concerns:
Revenue from existing tariff insufficient to cover costs
5.4 LAEDCL, with the existing tariff structure approved by AERC in FY 2005-2006, cannot meet its current costs and results in a deficit of Rs 81.06 Crores based on adjusted Power Purchase Cost (i.e. using Differential BST) and Rs 63.61 crores based on Uniform BST.
Facilitating New Investments
5.5 LAEDCL is making critical and urgently needed investments in its distribution network to reinforce an overloaded system and to enhance its reliability to meet contingencies. This proposal for approval of the Annual Revenue Requirement for FY 2006-07 also envisages recovery of these planned and on-going investments.
Tariff Philosophy
5.6 The present tariff petition envisages rationalising the tariff structure through recovery of user charges from consumers based on the average cost of supply. To the extent possible and considered prudent in the present socio-economic scenario, a conscious effort has been made to move towards cost of supply. In this context, it may be mentioned that on an average, the proposed percentage increase in HT rates is lower than that for LT rates.
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5.7 An effort has been made to reduce the total number of rates in the tariff structure. For example, at present, the Fixed Charges for LT Domestic A consumers varies between Rs 15 and Rs 30 per KW of connected load per month depending on the consumption slab. This difference in rates has been proposed to be eliminated to increase transparency as well as ease of implementation.
5.8 Jeevan Dhara consumers present a rather vexing problem if the implementation and monitoring of their billing is to be done correctly. As the eligibility of consumers depends on both monthly consumption as well as connected load, consumers (especially those which are marginal) will keep moving in and out of this category. Apart from increasing the difficulty of billing, it makes data analysis and MIS reporting a major administrative problem. It has therefore, been proposed to include the existing Jeevan Dhara consumers within the LT Domestic A category as a separate slab. This will ease administrative issues and increase transparency without removing the protection afforded to these lifeline consumers.
5.9 The tariff has also been proposed to be reviewed in terms of practicability – especially in respect of those consumers whose tariff is currently linked to the average monthly power availability. As in most of these cases, adequate instrumentation and infrastructural facilities do not exist to monitor the same, it is proposed to do away with differential fixed charges till such time that the required metering and monitoring mechanisms are not put in place. This will also go a long way in increasing transparency and reducing drawn out legal disputes arising out of perceived differences in the average monthly power availability factor and allied issues.
5.10 The licensee has also envisaged rationalising the extent of cross-subsidies among the various tariff categories existing today. The average cost of supply has been used to compute the resulting cross-subsidies in each tariff category.
5.11 Wherever applicable and to the extent possible, incentives and penalties have been emphasised.
5.12 The Electricity Act, 2003 provides for tariffs to progressively reflect the cost of supply for the gradual reduction and elimination of cross-subsidies. This proposal for the revision of tariff is in line with the provisions of the Electricity Act 2003, and envisages the reduction of the extent of cross subsidy in the subsidising categories and moving up realisation from the subsidised categories towards the average cost of supply,
5.13 This proposal for approval of the Annual Revenue Requirement for FY 2006-07 and approval of revised tariffs embodies the provisions of the Govt. of Assam Policy 2003 for Power Sector Reform and Restructuring in Assam, namely
(a) To enable a reasonable and commercially viable tariff structure of electricity supply services, set in a transparent manner through an independent regulator; promoting end use efficiency and commercially viable operation of the entities engaged in provision of electricity supply service , and
(b) To restore financial viability of power sector so that the sector ceases to be a burden on the State Budget, becomes a net generator of resources and is able to attract requisite investment on its own strength.
Expected Revenue from Proposed Charges
5.14 LAEDCL, by this petition for the revision of retail supply tariffs, and by a suitably structured Bulk Supply Tariff to be charged by ASEB, proposes to recover its entire Annual Revenue Requirement for FY 2006-07, ensuring full cost recovery.
5.15 The following table gives the detailed recovery of charges from the proposed tariff from each tariff category for LAEDCL for the FY 2006-07.
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Table 19: Category-wise revenue based on proposed tariff (Rs crores) Revenue from proposed Tariff Category Energy Charges Fixed Charges Total Charges Domestic 169.84 31.48 201.32 Commercial 78.19 22.40 100.59 General Purpose Supply 16.73 4.31 21.04 Public Lighting 2.31 0.39 2.70 Public Water Works 7.25 2.22 9.47 Agriculture 1.80 1.34 3.14 Industries - Rural 2.33 2.25 4.59 - Urban 60.21 15.94 76.15 Bulk Supply - Government Educational 6.22 1.54 7.76 Institutions - Others 48.56 7.65 56.21 Tea, Coffee & Rubber 8.51 4.90 13.40 Oil & Coal 3.32 1.25 4.57 Temporary Supply - 0.29 0.29 Revenue from sale to LAEDCL 405.29 95.95 501.24 consumers Employees consumption 0.83 - 0.83 Board’s establishment - - - Total Revenue 406.12 95.95 502.06
Detailed category wise revenue from proposed tariff, as per the Hon’ble Commission’s format, is given in Annexures V and VI.
Table 20: Percentage Contribution of major categories to Total Sales and Revenue (At Existing and Proposed tariff)
% of Total Revenue based on Category % of Total Sales Existing Tariff Proposed Tariff Domestic 44.8 39.3 40.1 Commercial 16.0 20.7 20.0 General Purpose Supply 3.4 4.1 4.2 Public Lighting 0.5 0.6 0.5 Public Water Works 1.9 2.2 1.9 Agriculture 0.7 0.8 0.6 Industries - Rural 1.2 0.8 0.9 - Urban 15.9 14.3 15.2 Bulk Supply - Government Educational 1.5 Institutions 1.6 1.5 - Others 11.0 11.7 11.2 Tea, Coffee & Rubber 1.9 2.8 2.7 Oil & Coal 0.8 1.0 0.9 Temporary Supply 0.0 0.1 0.1 Employees consumption 0.3 0.2 0.2 Board’s establishment 0.0 0.0 0.0 Total Revenue 100.0 100.0 100.0
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T6: Proposed Tariff
PROPOSED REVISION IN TARIFFS
6.1 LAEDCL has proposed a few changes in the tariff categories and slabs within the existing categories of consumers with a view to improving the ease of administration and implementation. It has also proposed a few additional and modified tariff clauses to rationalize the tariff as well as the associated escalatory clauses. These changes in the existing fixed charges and the energy to allow LAEDCL to recover the proposed Annual Revenue Requirement.
PROPOSAL FOR REVISED TARIFFS
6.2 This petition for the approval of the revised tariffs is built on the philosophy of full cost recovery and proposes to recover the deficit of Rs 83.59 crores, (based on Differential BST to arrive at a Uniform Retail Tariff) as detailed in the previous section. This entails an overall average increase of 20.0% in tariffs. The following section details the tariffs proposed for the various consumer categories. A summarized table of the proposed tariffs is furnished as an Annexure to this petition (Annexure VII)
LT Category-I: Domestic A (including Jeevan Dhara - to be merged with LT Domestic A)
(a) Fixed Charges: The existing tariff for this category of consumers is Rs. 15 per month per connection. LAEDCL proposes to merge the Jeevan Dhara consumers within LT Domestic A category as a separate slab whose monthly consumption does not exceed 30 KWh. It is proposed to revise the fixed charges to Rs 50 per month per KW of connected load across all slabs of ‘LT Domestic A’ category. This will greatly ease the implementation and monitoring processes as it will do away with the need for re-classifying a consumer every month depending on the level of consumption and connected load.
It is also proposed to extend the benefit of the erstwhile Jeevan Dhara subsidised rates only to small domestic consumers and hence, it will only be these consumers who will get migrated to the LT Domestic A category (Slab 0 – 30 units per month).
(b) Energy Charges: LAEDCL proposes to slightly modify the existing slabs for energy charge. The proposed energy charge for consumption of electricity in the various slabs is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption First 30 units (covers existing Jeevan Dhara consumers) 2.00 Next 90 units 3.00 Next 120 units 4.00 Balance units 5.00
LT Category-II: LT Domestic B
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 60 per KW of connected load per month.
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(b) Energy Charges: The proposed energy charge is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 5.00
LT Category-III: LT Commercial
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 125 per KW of connected load per month.
(b) Energy Charges: The proposed energy charge is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 5.00
LT Category-IV: LT General Purpose Supply
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 125 per KW of connected load per month.
(b) Energy Charges: The proposed energy charge is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 5.00
LT Category-V: LT Public Lighting
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 175 per KW of connected load per month.
(b) Energy Charges: The proposed energy charge is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.50
LT Category-VI: LT Agriculture
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 50 per KW of connected load per month.
(b) Energy Charges: The proposed energy charge is given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 2.50
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LT Category-VII: LT Small Industries
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 75 per KW of connected load per month for both Rural and Urban consumers.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units - Rural 2.00 For all units – Urban 2.35
LT Category-VIII: Temporary Supplies
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 80 per KW of connected load per day for Domestic connections and Rs 125 per day per KW of connected load for Non-Domestic connections.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per KWh) Monthly energy consumption Domestic 6.50 Non-Domestic 8.00
The amount payable by the consumer shall be either the fixed charge or variable charge as computed above, whichever is higher.
HT Category-I: HT Domestic
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 150 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.75
HT Category-II: HT Commercial
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 150 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 5.00
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Petition for Approval of ARR and Revision of Tariff for FY 2006-07
HT Category-III: HT Public Water Works (a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 150 per KVA of connected load per month. (b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.00
HT Category-IV: HT Bulk Supply
(a) Fixed Charges: The proposed fixed charge for both Bulk Government Educational Institutions and Others is Rs. 175 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units – Bulk Government Educational Institutions 4.10 For all units – Others 4.50
HT Category-V (A): HT Small Industries
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 100 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 2.90
HT Category-V (B): HT-I Industries
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 150 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.20
Time-Of-The-Day tariff (Optional) for HT-I Industries
Energy Charge Time Slab for consumption (Rs per kWh)
0600 – 1700 hours (Normal) 4.20 1700 – 2200 hours (Peak) 6.25 2200 – 0600 hours (Night) 3.35
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HT Category –V(C): HT-II Industries
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 190 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh)
Monthly energy consumption For all units 4.40
Time-Of-The-Day tariff (Optional) for HT-II Industries
Energy Charge Time Slab for consumption (Rs per kWh)
0600 – 1700 hours (Normal) 4.40 1700 – 2200 hours (Peak) 6.50 2200 – 0600 hours (Night) 3.50
HT Category-VI: Tea, Coffee and Rubber
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 250 per KVA of connected load per month. It is proposed to delink the Fixed Charge from the total monthly availability, as measurement of the availability of power, in respect of the individual consumer, does not appear to be feasible with the present level of infrastructure and instrumentation.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh)
Monthly energy consumption For all units 4.50
Time-Of-The-Day tariff (Optional) for Tea, Coffee & Rubber
Energy Charge Time Slab for consumption (Rs per kWh)
0600 – 1700 hours (Normal) 4.50 1700 – 2200 hours (Peak) 6.10 2200 – 0600 hours (Night) 4.10
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Off-season Tariff (Optional)
Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.70
HT Category-VII: Oil and Coal
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 300 per KVA of connected load per month. It is proposed to delink the Fixed Charge from the total monthly availability, as measurement of the availability of power, in respect of the individual consumer, does not appear to be feasible with the present level of infrastructure and instrumentation.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 4.50
Time-Of-The-Day tariff (Optional) for Oil and Coal
Energy Charge Time Slab for consumption (Rs per kWh)
0600 – 1700 hours (Normal) 4.50 1700 – 2200 hours (Peak) 6.10 2200 – 0600 hours (Night) 4.10
HT Category-VIII: HT Agriculture
(a) Fixed Charges: The proposed fixed charge for this category of consumers is Rs. 50 per KVA of connected load per month.
(b) Energy Charges: The proposed energy charges are given in the following table:
Energy Charge Description (Rs per kWh) Monthly energy consumption For all units 2.50
The aforesaid rates and charges are proposed to be made subject to the following clauses: i. Fuel Adjustment Surcharge ii. Import Adjustment Surcharge iii. Delayed Payment Surcharge iv. Power Factor Rebate / Penalty
Lower Assam Electricity Distribution Company Limited Page 46 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Fuel Adjustment Surcharge (FAS)
LAEDCL proposes to introduce FAS with a view to protecting itself from intermittent, adverse and unforeseen increase in fuel cost of energy imported from ASEB Trading from time to time. The FAS rate in respect of any financial year shall be equal to the total FAS payable by LAEDCL to ASEB Trading divided by the total quantum of energy billed during the same period and shall be applicable equally on all categories of consumers. FAS shall be levied on a provisional basis from time to time and shall be subject to a final adjustment on completion of audit in respect of each financial year. The detailed FAS clause is furnished in the following paragraphs.
Objectives:
The cost of fuel incurred in respect of energy delivered by LAEDCL is the largest single item of expenditure. At the same time, LAEDCL does not have any control whatsoever on the cost of fuel delivered – basic price, sales tax, royalties, cess, transportation etc. to the power stations from whom energy is purchased through ASEB Trading. Moreover, there is no bar on the fuel suppliers as to how frequently or how much the fuel prices may be increased.
On the other hand, LAEDCL is constrained to make a formal application to Assam Electricity Regulatory Commission for any upward revision of tariff, and that too not more than once a year, to receive their formal approval. Only when this entire process - normally quite lengthy - is gone through, can the power supply agency implement the revised tariff.
It is therefore, proposed to introduce FAS in the Schedule of Rates that will facilitate the following:
The distribution company will not need to go through a full tariff revision exercise to neutralize the financial impact of any change in fuel costs (the cost of fuel being deemed to include that of associated taxes, levies, transportation etc. as was defined in the erstwhile Sixth Schedule of The Electricity (Supply) Act, 1948. Instead, any adjustment in the FAS rate(s) applicable for the year shall be given effect to, based on (a) estimates for provisional rates and (b) audited financial statements for final rates.
FAS will be levied on its consumers on a provisional basis and shall be subject to a final adjustment on completion of audit in respect of each financial year. Should the final audited FAS rate be less or more than the provisional FAS rate(s) levied during the year, a corresponding credit or debit adjustment shall be made to the consumers’ accounts.
As there may be a difference between the provisional FAS rate(s) levied in course of a given financial year and the final FAS rate computed in respect of that financial year, the revenue for the year will include a component ‘Fuel Adjustment Surcharge due but not billed’ and shall be equal to the difference between the audited and the provisionally billed FAS rate(s) multiplied by the aggregate quantum of energy sold by ASEB to the distribution companies during that particular financial year.
Salient features of the proposed Fuel Adjustment Surcharge (FAS) clause:
1. FAS shall be constructed in a manner that LAEDCL will not stand to gain or lose due to differences in the actual values of key parameters such as sales mix, distribution losses etc.
2. The impact of any increase in fuel prices in respect of energy imported from ASEB Trading shall be neutralized by a corresponding increase in the FAS to be levied and collected by LAEDCL from its own retail consumers.
3. FAS shall be computed as per the following formula:
FAS rate applicable for a = Total amount payable by LAEDCL to ASEB Trading in respect of that financial year financial year Total quantum of energy sold in that financial year to all consumers supplied by LAEDCL
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Notes:
1. The FAS rate that shall be applicable to their consumers in respect of a particular financial year shall be the total FAS payable by that particular distribution company to ASEB Trader in respect of the energy received from it (ASEB Trader) divided by the aggregate sales to all consumers during that financial year.
2. Should ASEB or AERC desire that in order to maintain total uniformity of retail tariff, the applicable FAS rate should be the same across the distribution companies, the FAS rate that shall be applicable to all consumers in respect of a particular financial year shall be the aggregate FAS payable by all the distribution companies to ASEB Trader in respect of the energy received from it (ASEB Trader) divided by the aggregate sales to all consumers across all the distribution companies during that financial year.
It may be noted that if a uniform FAS rate is made applicable across all the distribution companies, it will result in over-realisation of FAS by certain distribution companies and under-realisation companies by others due to differences in distribution losses.
Import Adjustment Surcharge (IAS)
LAEDCL proposes to introduce an IAS with a view to protecting itself from intermittent, adverse and unforeseen increase in cost of energy imported (other than the fuel cost of energy imported) from ASEB Trading from time to time. The IAS rate in respect of any financial year shall be equal to the total IAS payable by LAEDCL to ASEB Trading divided by the total quantum of energy billed during the same period and shall be applicable equally on all categories of consumers. IAS shall be levied on a provisional basis from time to time and shall be subject to a final adjustment on completion of audit in respect of each financial year. The detailed IAS clause is furnished in the following paragraphs.
Objectives:
In case of LAEDCL, bulk of the energy delivered to it comes from external agencies. Apart from being a major cost item over which LAEDCL has no control, this makes it vulnerable to the risk of large arrears as the tariff of many of these external agencies is finalized by Central Electricity Regulatory Commission. Moreover, there is no bar on how frequently or how much the import prices may be increased by these external agencies. This issue is particularly emphasised in case of energy imported by ASEB Trading from PTC India and other energy traders as it is done through short-term and medium term contracts that are subject to prevalent energy market conditions.
On the other hand, LAEDCL is constrained to make a formal application to Assam Electricity Regulatory Commission for any upward revision of tariff, and that too not more than once a year, to receive their formal approval. Only when this entire process - normally quite lengthy - is gone through, can LAEDCL implement the revised tariff.
It is therefore, proposed to introduce an IAS in the Schedule of Rates that will facilitate the following:
The distribution company will not need to go through a full-blown tariff revision exercise to neutralize the financial impact of any change in import costs (other than fuel costs as that will be taken care of through the Fuel Adjustment Surcharge clause). Instead, any adjustment in the IAS rate(s) applicable for the year shall be given effect to, based on (a) estimates for provisional rates and (b) audited financial statements for final rates.
IAS will be levied on consumers on a provisional basis and shall be subject to a final adjustment on completion of audit in respect of each financial year. Should the final audited IAS rate be less or more than the provisional IAS rate(s) levied during the year, a corresponding credit or debit adjustment shall be made to the consumers’ accounts.
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As there may be a difference between the provisional IAS rate(s) levied in course of a given financial year and the final IAS rate computed in respect of that financial year, the revenue for the year will include a component ‘Import Adjustment Surcharge due but not billed’ and shall be equal to the difference between the audited and the provisionally billed IAS rate(s) multiplied by the aggregate quantum of energy sold by ASEB to the distribution companies during that particular financial year.
Salient features of the proposed IAS clause:
1. IAS shall be made applicable equally in respect of all consumers.
2. IAS shall be constructed in a manner that LAEDCL will not stand to gain or lose due to differences in the actual values of key parameters such as distribution loss, sales mix etc.
3. The impact of any increase in import prices (other than fuel prices) in respect of energy imported from ASEB Trading shall be neutralized by a corresponding increase in the IAS to be levied and collected by LAEDCL from own retail consumers.
4. IAS shall be computed as per the following formula:
The IAS rate applicable = Total amount payable by LAEDCL as IAS to ASEB Trading in respect of that financial year for a financial year Total quantum of energy sold in that financial year to all consumers supplied by LAEDCL
Notes:
1. The IAS rate that shall be applicable to consumers of LAEDCL in respect of a particular financial year shall be the total IAS payable by LAEDCL to ASEB Trader in respect of the energy received from it (ASEB Trader) divided by the aggregate sales to all consumers of LAEDCL during that financial year.
2. Should ASEB or AERC desire that in order to maintain total uniformity of retail tariff, the applicable IAS rate should be the same across all the distribution companies, the IAS rate that shall be applicable to all consumers in respect of a particular financial year shall be the aggregate IAS payable by all the distribution companies to ASEB Trader in respect of the energy received from it (ASEB Trader) divided by the aggregate sales to all consumers across all the distribution companies during that financial year.
It may be noted that if a uniform IAS rate is made applicable across all the distribution companies, it will result in over-realisation of IAS by certain distribution companies and under-realisation companies by others due to differences in distribution losses.
Delayed Payment Surcharge (DPS)
The existing clause shall remain unchanged.
Power Factor Rebate or Penalty
(a) Power Factor Penalty: In case the average power factor in a month falls below 85%, a penalty @ 1% for every 1% fall in average power factor from 85% to 60% plus 2% for every 1% fall in average power factor from 60% to 30% plus 3% for every 1% fall in average power factor below 30% shall be levied on the total energy charge. Power factor penalty shall be levied on all consumers equally, irrespective of whether the metering is done through electronic or electro-mechanical devices.
(b) Power Factor Rebate: In case the average power factor in a month is more than 90%, a rebate @ 0.5% for every 1% increase in average power factor from 90% shall be allowed
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on the total energy charge. Power factor rebate shall be applicable on all consumers equally, irrespective of whether the metering is done through electronic or electro- mechanical devices.
Statutory levies
Any increase in operating costs due to variation or imposition of any statutory levy by the Government of India, Government of Assam or any other competent authority in respect of energy purchased or distributed by LAEDCL shall be recovered from its consumers as a surcharge on the standard rates mentioned in the Schedule of Tariff.
The tariff structure, as per the Hon’ble Commission’s format, is furnished in Annexure-VII.
The schedule of tariff, including terms and conditions of tariff proposed to be made effective from 1st April 2006, are furnished in Annexure VIII.
T7: Progress on Commission’s Previous Directives
7.1 The progress achieved on the various directives issued by the Hon’ble Commission as part of its Tariff Order for FY 2005-06, is mentioned in the table below:
Table 21: Replies to AERC Directives AERC Directive – FY05-06 Action Taken To Date or To Be Taken T & D Losses – Guwahati-II, Jorhat For Guwahati Circle II, feeder-wise energy meters and substation meters and Dibrugarh are being installed and in some points the same have already been 8.1 (a) T & D Losses commissioned under the APDRP scheme. As the APDRP works have commenced in the three circles, namely Guwahati-II, Actual T&D loss reduction can be assessed after 100% completion of the Jorhat and Dibrugarh, the Commission above works. The details regarding the APDRP Schemes have been directs that the concerned Discoms make provided in the petition. a study of the reduction of losses gained from investments in these circles and submit the same at least one month before the submission of next tariff petition.
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AERC Directive – FY05-06 Action Taken To Date or To Be Taken Billing Efficiency Billing efficiency for the period April to July 2005 was as follows: 8.1 (b) Billing Efficiency The Commission directs the Discoms April 2005 May 2005 June 2005 July 2005 that Annual Average of monthly Billing 89% 89% 91% 89% Efficiency should not be less than 95%, Where monthly billing efficiency = Company has outsourced the billing activities with a view to achieving Number of consumer billed during the higher and improved billing percentages as directed by the Hon’ble month divided by the number of Commission. consumers served by the Licensee at the beginning of month. The Commission Computerisation of billing is underway and Billing efficiency is expected further directs that the Discoms furnish a to stabilize after full computerization is done. quarterly report on the Billing Efficiency achieved with effect from July 2005 Spot billing has been introduced for domestic, commercial and small and indicating the action taken in respect of medium industrial consumers on a trial basis. Mentioned below is a status the units (Circles/Divisions/Sub- report on the use of Spot Billing Machines : divisions) where the Billing Efficiency is lower for informing the consumers the Name of Sub Division Status names of the units and of the officers in Jalukbari Bill served to 301 nos. of consumers their charge. during Sept’05 and Oct’05 for one route only. Amingaon Billing by SBM started on Oct’05 but the processed bill could not be served due to detection of some anomalies in the bill. 286 bills served in the month of November ’05. Mirza 47 nos. of bills are served for the month of Oct’05 excluding stop and defective meters and anomalies of average reading. Sualkuchi 40 nos. of billed served for the month of Oct’05 Chaygaon 40 nos. of bills served for the month of Oct’05 Hajo SBM delivered, billing under process. Boko SBM delivered, billing under process.
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AERC Directive – FY05-06 Action Taken To Date or To Be Taken Collection Efficiency Collection efficiency for July 05 was 95%. 8.1 (c) Collection Efficiency The Commission directs the Discoms To achieve the collection efficiency as directed by the Hon’ble that Annual Average of monthly Commission, the following actions have been undertaken: Collection Efficiency should not be less than 95%, a) Regular disconnection drive against non-payment of dues is being Where monthly Collection Efficiency = made effective. Amount realized divided by the amount b) Disconnection prioritisation is being based on the amount and/or age assessed during month. The Commission of arrears and accordingly different kinds of notices are being issued further directs that the Discoms furnish a to the defaulting consumers. quarterly report on the Collection c) Introduction of spot billing for domestic, commercial and small and Efficiency achieved with effect from medium industrial consumers. July 2005 indicating action taken in d) Introduction of Automated Meter Reading will not only improve respect of units where the Collection billing but also shorten the revenue cycle time from consumption to Efficiency billing and collection and thus improve collection efficiency. is lower for informing the consumers the e) Opening time of some Cash Counters have been advanced to 9.00 am names of the units and of the officers in during working days. their charge. f) Cheque drop facilities have also been introduced in some locations. These steps would gradually be extended further and it is expected that these will help in improving the collection efficiency to a great extent.
All concerned field units have been directed to take up vigorous disconnection drives and to collect arrears & achieve more than 100% in collection efficiency. Sub Divisional level consumer committees have been formed and communication with consumers has also been improved through setting up of customer care centers.
Security Deposit Register Security Deposit Registers at the Subdivision-level have been introduced 8.4 C The Commission directs each and are being updated regularly. Company to maintain an up to date Security Deposits Register duly For payment of interest on security deposit a guideline for the same has reconciled with their books of accounts been circulated to the offices. ... The Commission directs the licensee should evolve a suitable mechanism for An updated status report on this matter will be furnished shortly to the refund the interests accrued on security Hon’ble Commission. deposit collected from the consumers and submit a report on the same before the Commission within one month of this order. Detailed Business Plans for Next 5 The work on Business Plans for the next 5 years is underway and it is Years expected that the same will be completed after the Tariff Filing process for 11.5 The Commission also requires each FY 2006-07 is over. Therefore, the utility craves leave to submit the same of the Licensees to submit detailed once they are ready after the Tariff Petition is filed. business plans for the next 5 years having details of its Capital expenditure and Financing plans as well the future projections of operational performance like losses and collection efficiency.
Lower Assam Electricity Distribution Company Limited Page 52 of 97
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AERC Directive – FY05-06 Action Taken To Date or To Be Taken Energy Auditing & Distribution Action is taken to conduct a study on energy auditing and distribution Losses losses. 11.10 (a) Energy Auditing and study on Distribution losses – The Discoms are 11 KV Dadari feeders at 33 KV Amingaon Substation has been taken up required to take up pilot projects to study for energy auditing as a pilot project. the exact nature and causes of losses. Another two Feeders in Jalukbari Substation have been taken up for energy auditing as pilot project.
Existing 11 KV Garpandu feeder of 33 KV Jalukbari Substation has been taken up for implementation of LT less distribution network to reduce the distribution loss as a pilot project.
Report on the above studies would be submitted to the Hon’ble Commission in due course.
Divisional/Sub divisional The performance of the individual Divisions and Subdivisions is being Accountability for Profit, Losses and closely monitored and necessary action is being taken to proceed in line Revenue with the Hon’ble Commission’s directive. The process has been initiated 11.10 (b) Introduce accountability and to introduce accountability and responsibility at the Division and Sub responsibility within the divisions and Division level. subdivisions and hence look at each of these as profit centers and monitor losses MOUs with CEO’s, CEO’s & EE’s of respective Divisions under them, & and revenue performance of these between respective EE’s and SDEs have been signed and responsibility(s) centers. and accountability as profit centre is being fixed.
In furtherance to this objective, the company has introduced a Performance Incentive Scheme as well, on a trial basis. The details of this scheme have been furnished in the petition under the head “Performance Incentive Scheme”. Distribution Losses After completion of various project works under LAEDCL, distribution 11.11 The three Discoms are to submit losses are expected to reduce by a considerable extent. data regarding the current and future level of Distribution losses for FY 2006- The details of the various initiatives for reduction of distribution losses 07 including the impact of Distribution have been furnished in the petition under the head “Efficiency network projects on the reduction of Improvement Initiatives”. losses no later than three months from the issue of his order. Following the Directives of the Hon’ble Commission and the ongoing Distribution System strengthening program, the distribution loss for LAEDCL has been estimated as 24.9% for FY 2006-07.
Billing & Management Information MIS can be generated only after a full fledged completion and Systems implementation of computerized billing system. 11.12 The Commission recognizes the massive efficiency gains that can result Efforts are on to implement computerized billing in most of the IRCA out of effective Computerisation of divisions – which deal mainly with high value consumers. However, Billing and Management Information computerized billing is also being introduced in some of the Electrical sub Systems (MIS) and wishes the Discoms divisions for domestic and commercial consumers. Total computerization to submit soon after this order, a status will be implemented after the completion of the CMC Billing project. report of the its Billing and MIS being followed by each of the Discoms.
Interface Metering Points Interface metering between the Discoms and AEGCL is being done. . A 11.16 The five petitioners are to provide detailed report on the installation of ABT compliant meters that are being details of interface metering points of installed has been furnished in the petition of Assam Electricity Grid the five petitioners for energy Corporation Limited accounting, and also the status of accounting as directed by the Commission in the Interim Tariff Order dated 31 March, 2005.
Lower Assam Electricity Distribution Company Limited Page 53 of 97
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AERC Directive – FY04-05 Action Taken To Date or To Be Taken Metering Installed at ASEB Premises Action already taken up and completed; field report awaited. Once 8.1 The Commission hereby directs the Board the report is received, the same will be filed before the Hon’ble to submit a report on the status of meters Commission. installed at offices and premises belonging to ASEB, within two months of the publication of this order. Insurance Cover of Assets The process has been initiated and an in depth study of the tariff of 8.6 The Commission hereby directs the Board various Insurance Companies including Global Insurers is planned to analyses the economics of taking required to be undertaken. insurance cover of assets, risks associated with Besides this staff training is also required for this purpose. employees or third party etc. and submit a The above process is expected to take sometime. The Hon’ble report on this matter within three months of Commission will be kept updated on the status. issue of this tariff order. Un-metered Consumers All un-metered consumers are being metered under APDRP/ ADB 8.8 ASEB is directed to provide on a monthly scheme. New consumers are being given connection with meters. basis the number of such [un-metered] consumers (existing and new). Further within three months of the issuance of this order ASEB must conduct a comprehensive study to analyze the energy consumption of a typical consumer of this category. Fixed Charges for Different Consumer In furtherance to the Hon’ble Commission’s directive, LAEDCL Categories prays to review the Fixed Charges structure introduced by the 8.10 The Commission has rationalized the fixed Hon’ble Commission in terms of its practicability – especially in charges for the different consumer categories. respect of those consumers whose tariff is currently linked to the This rationalization has been achieved through average monthly power availability. As in most cases, adequate two methods, increasing the level of fixed instrumentation and infrastructural facilities do not exist to monitor charges and by linking the fixed charges to availability at individual consumer level, it is proposed to do away level of availability ... The Commission directs with differential fixed charges till such time that the required ASEB to submit along with the next tariff metering and monitoring mechanisms are not put in place. This will proposal ways and means of extending this go a long way in increasing transparency and reducing drawn out scheme to other categories. Moreover the legal disputes arising out of perceived differences in the average ASEB may even analyze the success of this monthly power availability factor and allied issues. scheme and suggest modifications to improve its effectiveness. Metering of Consumers All un-metered consumers are being metered under APDRP/ADB 8.11 The Commission believes that metering of scheme consumers must be taken on war footing to improve the revenue generation and achieve loss reduction. The Commission directs the ASEB to provide the quarterly progress reports on the progress on APDRP and ADB funded schemes.
Lower Assam Electricity Distribution Company Limited Page 54 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
AERC Directive – FY04-05 Action Taken To Date or To Be Taken Strategy to Provide Quality Service and LAEDCL has made an attempt to give a signal of providing quality Retain Subsidization services despite retaining cross subsidy for the needy consumer 8.12 The Commission directs the Board to categories, through the proposed tariff structure. formulate a strategy to provide quality service The proposed tariffs are aimed at protecting the life line consumers and retain the subsidising (where the average through a heavily subsidised tariff rate. At the same time, the tariff is higher than the cost of supply) set of contribution of other subsidised categories has been marginally consumers and submit such strategy to the increased so that the burdens on the subsiding categories are Commission within three months from the date correspondingly reduced. So whereas on the one hand cross subsidy of this order. is continued, on the other hand, the burden of such subsidy on the subsiding categories has been reduced so that the various categories can gradually move towards the average cost of supply. This is in line with the Hon’ble Commission’s objective to ultimately move towards Cost of Supply based tariffs. A Management consultancy cell at DISCOM level is also proposed to be set up which will formulate such strategies n future after necessary study (DATA MINING) of past data. MRI Downloads and Analysis for HT Action is being taken up. Consumers 8.13 The Commission hereby directs ASEB to evolve a suitable process and mechanism and ensure monthly MRI downloads and analysis for all HT consumers from the month of January 2005. A brief monthly report on the following heads should be submitted to the Commission by 25th of the following month: No of HT consumers No of MRI downloads taken No of cases where discrepancies found Amount of additional bills raised Collection against such bills Action taken to prevent such cases in future Asset Register A physical inventory of assets is currently under preparation. 8.18 The Commission hereby directs ASEB to Thereafter, the detailed asset Register shall be prepared. build an asset register that should include information on the status of the assets mentioned. Within two months of publication of this tariff order ASEB should inform the Commission about the expected time to be taken to build the asset register. TOU Charges The major factors that will influence the decision on whether or not 8.20 The Commission directs ASEB to submit to implement TOU charges are the following – an action plan within three months that lists out a) Total quantum of energy consumption as TOU charges the ground issues for implementation of Time will be effective only for large consumers. of Use (TOU) charges for categories other than b) Perceived ability of the consumer category to be those where such charges are already in force. responsive to differential TOU tariff. ASEB should estimate the time and money that c) Estimated benefit to ASEB, of persuading the target will be required to upgrade metering at consumers to modify their consumption pattern. consumer premises and an ABC analysis based Notwithstanding the funds constraint being faced by ASEB, the on which the utility can stagger the cost of metering is not likely to be a major constraint as the implementation and thus reduce the initial number of consumers affected will be small and the change- investment. over can be done in a phased manner.
Lower Assam Electricity Distribution Company Limited Page 55 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
AERC Directive – FY04-05 Action Taken To Date or To Be Taken Unmetered Consumers All unmetered consumers are being metered under APDRP scheme. 8.21 The Commission directs the ASEB to report on a quarterly basis the number of un- metered connections and conduct sample load surveys every year of such consumers to check for any increase in connected load/multiple points in their premises. Based on the load survey ASEB must compute a normative level of monthly energy consumption per point beyond which the consumer must shift to the regular metered tariff.
Lower Assam Electricity Distribution Company Limited Page 56 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure I: Employee Cost – Additional Information
LAEDCL Form-AT6A/T6A/DA 6
Employees Costs - Additional information Previous year 04-05 Current year 05-06 Ensuing year 06-07 Number Number Number Sl No Category of employee Sanctioned Working Sanctioned Working Sanctioned Working
1 Board of Directors ------2 Chief Engineer & 222222 equivalents 3 Superintending Engineers 14 13 14 11 14 10 & equivalents 4 Executive Engineers & 70 65 70 60 70 53 equivalents 5 Asst Executive Engineers 160 136 160 127 160 123 & equivalents 6 Asst Engineers & 80 56 80 62 80 51 equivalents 7 All other staff 5925 4004 5925 3892 5925 3451 8 ACEs & Equivalents 666665
Total 6257 4282 6257 4160 6257 3695
Lower Assam Electricity Distribution Company Limited Page 57 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure II: Gross Fixed Assets
LAEDCL Form-AT15/T15/D15 Gross Fixed Assets Information shall be provided voltage class ( 400 KV, 220 KV, 132 KV, 66 KV, 33 KV, 11 KV and below) Repeat the same format to provide voltage class-wise information.
(Rs crores) Previous year 2004-05 Current year 2005-06 Ensuing year2006-07 Balance at the Additions Retirement Balance at the end of AdditionsRetirement Balance at the end of Additions RetirementBalance at the end of beginning of the year during the of assets the year during theof assets the year during the of assets the year Sl No Particulars of assets year during the year during the year during the year year year
1 Land & Rights 3.71 0.64 4.35 4.35 4.35 2 Building 7.29 0.00 7.29 7.29 7.29 3 Hydraulic 2.60 (0.00) 2.60 2.60 2.60 4 Other Civil Works 5.06 0.06 5.13 5.13 5.13 5 Plant & Machinery 89.70 0.89 90.59 90.59 90.59 6 Lines & Cable Net work 174.73 1.52 176.25 176.25 176.25 7 Vehicles 4.67 0.07 4.74 4.74 4.74 8 Furniture& Fixtures 3.20 0.02 3.22 3.22 3.22 9 Office Equipment 1.54 0.31 1.85 1.85 1.85 10 Other items (provide list) Total 292.51 3.50 - 296.01 - - 296.01 - - 296.01
Lower Assam Electricity Distribution Company Limited Page 58 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure III: Depreciation LAEDCL Form - AT8/T8/D8 Depreciation Information shal be provided voltage class ( 400 KV, 220 KV, 132 KV, 66 KV, 33 KV, 11 KV and below) Repeat the same format to provide voltage class-wise information.
(Rs crores) Previous year 2004-05 Current year 2005-06 Ensuing year 2006-07 Balance of Depreciation Withdrawal of Balance of Depreciation Withdrawal of Balance of Depreciation Withdrawal of Balance of accumulated provided for the depreciation accumulated provided for the depreciation accumulated provided for the depreciation accumulated depreciation at the year depreciation at the year depreciation at the year depreciation at the Sl No Description of assets beginning of the end of the year end of theyear end of theyear year
1. Land & Rights ------
2. Building 2.59 0.07 2.67 0.34 3.01 0.34 3.35
3. Hydraulic 1.21 0.01 1.22 0.09 1.31 0.09 1.40 4. Other Civil Works 0.98 0.03 1.01 0.08 1.09 0.08 1.17
5. Plant & Machinery 57.72 2.80 60.52 5.03 65.55 5.03 70.58
6. Lines & Cable Net work 115.82 20.40 136.22 9.90 146.13 9.90 156.03
7. Vehicles 3.47 0.09 3.56 0.31 3.87 0.31 4.18
8. Furniture& Fixtures 2.85 0.12 2.97 - 2.97 - 2.97
9. Office Equipment 1.07 0.08 1.15 0.08 1.23 0.08 1.30
10. Other items (provide list)
Grand Total 185.72 23.59 - 209.31 15.84 - 225.15 15.84 - 240.99
Lower Assam Electricity Distribution Company Limited Page 59 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IV: Net Fixed Assets
LAEDCL Form-AT16/T16/D16 Net Fixed Assets Information shall be provided voltage class ( 400 KV, 220 KV, 132 KV, 66 KV, 33 KV, 11 KV and below) Repeat the same format to provide voltage class-wise information.
(Rs crores) Previous year 2004-05 Current year 2005-06 Ensuing year 2006-07 Balance of written Net Addition Net Balance of written Balance of written Balance of written of assets Depreciation down cost of down cost of down cost of Net Addition down cost of assets Net Addition during the for the Year Net Net Sl No Description of assets assets at the assets at the end of of assets at the end of the year of assets assets at the end of year Depreciation Depreciation beginning of the the year during the during the the year for the Year for the Year year year year
123 456 78 9 10 11 12 1 Land & Rights 3.71 0.64 - 4.35 - - 4.35 - - 4.35 2 Building 4.69 0.00 0.07 4.62 - 0.34 4.28 - 0.34 3.94 3 Hydraulic 1.39 (0.00) 0.01 1.38 - 0.09 1.29 - 0.09 1.20 4 Other Civil Works 4.08 0.06 0.03 4.12 - 0.08 4.04 - 0.08 3.96 5 Plant & Machinery 31.98 0.89 2.80 30.06 - 5.03 25.03 - 5.03 20.01 6 Lines & Cable Net work 58.91 1.52 20.40 40.02 - 9.90 30.12 - 9.90 20.21 7 Vehicles 1.20 0.07 0.09 1.18 - 0.31 0.87 - 0.31 0.56 8 Furniture& Fixtures 0.36 0.02 0.12 0.26 - - 0.26 - - 0.26 9 Office Equipment 0.47 0.31 0.08 0.70 - 0.08 0.62 - 0.08 0.54 10 Other items (provide list)
Total 106.79 3.50 23.59 86.70 - 15.84 70.86 - 15.84 55.02
Lower Assam Electricity Distribution Company Limited Page 60 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure V: Revenue from Sale of Power
Form D2/AT2
LAEDCL Revenue from Sale of Power No of Energy Sold Revenue (Rs Average No of Energy Revenue Average No of Energy Sold Revenue Average Installations (MU)Previous yearCrs) 2004-05realisation Installations Current Sold (MU) year 2005-06(Rs Crs) - Estimatedrealisation Installations Ensuing(MU) year 2006-07(Rs Crs) - Projectedrealisation Sl. (Rs/unit) (Rs/unit) (Rs/unit) Particulars No. I Consumer Categorywise Low Tension
1 Jeevan Dhara / Domestic A (0-30 units) 22.080 5.82 2.63 24.486 6.81 2.78 2 Domestic A - 782.19 221.46 2.83
0-120 128.657 38.36 2.98 142.675 53.46 3.75 121-240 120.634 48.93 4.06 133.779 63.35 4.74 > 240 70.355 33.12 4.71 78.021 44.14 5.66 3 Domestic B 42.398 17.94 4.23 47.018 26.52 5.64 4 Commercial 223.97 118.08 5.27 131.220 74.33 5.66 146.999 94.90 6.46 5 General Purpose Supply 51.59 19.71 3.82 29.446 15.11 5.13 33.459 21.04 6.29 6 Public Lighting 6.42 3.55 5.53 4.517 2.07 4.59 5.132 2.70 5.26 7 Agriculture 15.89 13.96 8.79 0.048 0.02 3.29 0.053 0.022 4.19 8 Rural Industries 11.291 3.33 2.95 11.663 4.59 3.93 9 Urban Industries 25.68 19.75 7.69 10.987 3.13 2.85 11.915 3.87 3.25 10 Temporary Supply 0.47 0.43 9.15 0.379 0.19 5.00 0.430 0.28 High Tension 11 HT Domestic 11.594 4.46 3.85 12.858 7.04 5.47 Included above under LT Domestic 12 HT Commercial 8.376 4.08 4.87 9.383 5.69 6.06 Included above under LT Commercial 13 Public Water Works 33.05 22.09 6.68 17.375 8.83 5.08 18.135 9.47 5.22 14 Bulk Supply - Educational 237.94 116.11 4.88 13.361 5.83 4.36 15.182 7.76 5.11 15 Bulk Supply - Others 104.459 47.65 4.56 107.907 56.21 5.21 16 HT Small Industries 309.70 146.68 4.74 26.751 8.25 3.08 29.010 11.77 4.06 17 HT-I Industries 63.533 26.39 4.15 68.898 36.39 5.28 18 HT-II Industries 42.037 17.80 4.24 45.587 24.12 5.29 19 Tea, Coffee and Rubber 293.75 175.47 5.97 18.303 11.45 6.26 18.907 13.40 7.09 20 Oil and Coal 6.501 3.66 5.63 7.387 4.57 6.19 21 HT Irrigation Included above under LT Agriculture 6.423 3.09 4.81 7.156 3.12 4.36
Total 890.725 383.83 4.31 976.043 501.22 5.14 Employees' Consumption 3.22 3.19 0.64 3.33 0.83 Board's Establishment 0.74 0.36 0.43 Grand total 1,984.61 857.29 4.32 894.28 384.47 979.80 502.06 5.12
Lower Assam Electricity Distribution Company Limited Page 61 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VI: Category wise Revenue from Sale of Power Category Wise Revenue from Sale of Power
LAEDCL FORM T21/D21
Expected Proposed Additional Percentage Consumpti Charges at Existing Tariff Charges at Proposed Tariff Revenue at Increase (%) Sl. Tariff No. of Connected on- Rate Amount Total Amount Rate Amount Total Type of installation Proposed No. Category consumers Load(KW) Slabwise (Rs) (Rs. (Rs. crores) (Rs) (Rs. Amount Particulars Particulars Charges (MU) crores) crores) (Rs. crores) (Rs.crores)
Fixed Chages-per 1LT 1 Jeevan Dhara 83,541 31,927 connection 15.00 1.50 Fixed Chages - Rs/KW 50.00 1.92 upto 5 KW 24.486 Energy Charges 2.00 4.90 Energy Charges 2.00 4.90 Total 6.40 0-30 Units 6.81 0.41 6% Total
2LT 2 Domestic A Fixed Charges Fixed Charges upto 5 KW 15.00 upto 5 KW 50.00 177,551 KW 3.20 KW 10.65 upto 5 KW 30.00 upto 5 KW 50.00 163,982 KW 5.90 KW 9.84 upto 5 KW 30.00 upto 5 KW 50.00 85,530 KW 3.08 KW 5.13 Energy Charges Energy Charges 275,568 142.675 0-120 2.75 39.24 31-120 3.00 42.80 Units Units 87,254 133.779 121-240 3.60 48.16 121-240 4.00 53.51 Units Units 32,236 78.021 Balance Units 4.30 33.55 Balance Units 5.00 39.01 Units Units 395,058 Total 133.12 Total 160.95 27.82 21%
3LT 3 Domestic B 4,205 41,838 Fixed Charges 30 1.51 Fixed Charges 60.00 3.01 5-20 KW/month 5-20 KW/month 47.018 Energy Charges 3.9 18.34 Energy Charges 5.00 23.51 Full Consumption Full Consumption Total 19.84 Total 26.52 6.68 34%
4LT 4 Commercial 77,185 142,666 Fixed Charges 110 18.83 Fixed Charges 125.00 21.40 0.5-20 KW/month 0.5-20 KW/month 146.999 Energy Charges 4.3 63.21 Energy Charges 5.00 73.50 Full Consumption Full Consumption Total 82.04 Total 94.90 12.86 16%
5LT 5 General Purpose Suppl 10,263 28,739 Fixed Charges 125 4.31 Fixed Charges 125.00 4.31 0-20 KW/month 0-20 KW/month 33.459 Energy Charges 3.8 12.71 Energy Charges 5.00 16.73 Full Consumption Full Consumption Total 17.03 Total 21.04 4.02 24%
6LT 6 Public Lighting 765 1,862 Fixed Charges 120 0.27 Fixed Charges 175.00 0.39 Rs/KW/month Rs/KW/month 5.132 Energy Charges 4 2.05 Energy Charges 4.50 2.31 Full Consumption Full Consumption Total 2.32 Total 2.70 0.38 16%
Lower Assam Electricity Distribution Company Limited Page 62 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VI contd... LAEDCL FORM T21/D21
Expected Proposed Rate Additional Percentage Consumpti Charges at Existing Tariff Charges at Proposed Tariff (Rs) Amount Total Amount AmountRate Total Revenue at Increase (%) Sl. Tariff No. of Connected on- Type of installation Particulars (Rs. Crs) (Rs. Crs) (Rs. (Rs)Crs) Proposed No. Category consumers Load(kW) Slabwise Amount Particulars Charges (MU) (Rs. Crs) (Rs.Crs)
7 LT 7 Agriculture 38 151 Fixed Charges 30 0.01 Fixed Charges 50.00 0.01 Rs/kW/month Rs/kW/month 0.053 Energy Charges 2.15 0.01 Energy Charges 2.50 0.01 Full Consumption Full Consumption Total 0.02 Total 0.02 0.01 32%
8 LT 8(i) Rural Industries 2,136 25,047 Fixed Charges 30 0.90 Fixed Charges 75.00 2.25 Rs/kW/month Rs/kW/month 11.663 Energy Charges 2.15 2.51 Energy Charges 2.00 2.33 Full Consumption Full Consumption Total 3.41 Total 4.59 1.18 35% 9 LT 8(ii) Urban Industries 787 11,906 Fixed Charges 40 0.57 Fixed Charges 75.00 1.07 Rs/kW/month Rs/kW/month 11.915 Energy Charges 2.35 2.80 Energy Charges 2.35 2.80 Full Consumption Full Consumption Total 3.37 Total 3.87 0.50 15%
10 LT 9 Temporary Supply 96 135 Fixed Charges 60 / 100 Fixed Charges 80 / 125 Rs/kW/day Rs/kW/day 0.430 Energy Charges 5.00 / 6.00 0.22 Energy Charges 6.50 / 8.00 0.28 Full Consumption Full Consumption Total 0.22 Total 0.28 0.06 30%
11 HT 1 HT Domestic 210 4,649 Fixed Charges 30 0.19 Fixed Charges 150.00 0.93 Rs/kVA/month Rs/kVA/month 12.858 Energy Charges 3.7 4.76 Energy Charges 4.75 6.11 Full Consumption Full Consumption Total 4.94 Total 7.04 2.09 42%
12 HT 2 HT Commercial 231 4,985 Fixed Charges 115 0.76 Fixed Charges 150.00 1.00 Rs/kVA/month Rs/kVA/month 9.383 Energy Charges 4 3.75 Energy Charges 5.00 4.69 Full Consumption Full Consumption Total 4.52 Total 5.69 1.17 26% 13 HT 3 Public Water Works 713 11,084 Fixed Charges 125 1.85 Fixed Charges 150.00 2.22 Rs/kVA/month Rs/kVA/month 18.135 Energy Charges 4 7.25 Energy Charges 4.00 7.25 Full Consumption Full Consumption Total 9.10 Total 9.47 0.37 4%
Lower Assam Electricity Distribution Company Limited Page 63 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VI contd... LAEDCL FORM T21/D21
Expected Proposed Additional Percentage Consumpti ChargesRate at Existing Tariff Charges at Proposed Tariff Amount Total Amount RateAmount Total Revenue at Increase (%) Sl. Tariff No. of Connected on- (Rs) Type of installation (Rs. Crs) (Rs. Crs) (Rs)(Rs. Crs) Proposed No. Category consumers Load(kW) Slabwise Particulars Amount Particulars Charges (MU) (Rs. Crs) (Rs.Crs)
14 HT 4(i) Bulk Supply - Educationa 51 9,401 Fixed Charges 110 0.97 Fixed Charges 175.00 1.54 Rs/kVA/month Rs/kVA/month 15.182 Energy Charges 3.7 5.62 Energy Charges 4.10 6.22 Full Consumption Full Consumption Total 6.58 Total 7.76 1.18 18%
15 HT 4(ii) Bulk Supply - Others 167 46,847 Fixed Charges 145 6.34 Fixed Charges 175.00 7.65 Rs/kVA/month Rs/kVA/month 107.907 Energy Charges 3.95 42.62 Energy Charges 4.50 48.56 Full Consumption Full Consumption Total 48.96 Total 56.21 7.25 15%
16 HT 5 HT Small Industries 668 25,142 Fixed Charges 40 1.34 Fixed Charges 100.00 3.35 Rs/kVA/month Rs/kVA/month 29.010 Energy Charges 2.6 7.54 Energy Charges 2.90 8.41 Full Consumption Full Consumption Total 8.88 Total 11.77 2.88 32%
17 HT 5(B) HT-I Industries 534 53,246 Fixed Charges 100 4.97 Fixed Charges 150.00 7.45 Rs/kVA/month Rs/kVA/month 68.898 Energy Charges 3.4 23.43 Energy Charges 4.20 28.94 Full Consumption Full Consumption Total 28.39 Total 36.39 8.00 28% 18 HT 5 (C) HT-II Industries 89 22,904 Fixed Charges 140 2.99 Fixed Charges 190.00 4.06 Rs/kVA/month Rs/kVA/month 45.587 Energy Charges 3.55 16.18 Energy Charges 4.40 20.06 Full Consumption Full Consumption Total 19.18 Total 24.12 4.94 26% 19 HT 6 Tea, Coffee and Rubber 63 20,981 Fixed Charges 230 4.50 Fixed Charges 250.00 4.90 Rs/kVA/month Rs/kVA/month 18.907 Energy Charges 3.85 7.28 Energy Charges 4.50 8.51 Full Consumption Full Consumption Total 11.78 Total 13.40 1.62 14%
20 HT 7 Oil and Coal 16 4,467 Fixed Charges 270 1.13 Fixed Charges 300.00 1.25 Rs/kVA/month Rs/kVA/month 7.387 Energy Charges 3.95 2.92 Energy Charges 4.50 3.32 Full Consumption Full Consumption Total 4.04 Total 4.57 0.53 13%
Lower Assam Electricity Distribution Company Limited Page 64 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VI contd... LAEDCL FORM T21/D21
Expected Proposed Rate Additional Percentage Consumpti Charges at Existing Tariff Charges at Proposed Tariff (Rs) Amount Total Amount AmountRate Total Revenue at Increase (%) Sl. Tariff No. of Connected on- Type of installation Particulars (Rs. Crs) (Rs. Crs) (Rs.(Rs) Crs) Proposed No. Category consumers Load(kW) Slabwise Amount Particulars Charges (MU) (Rs. Crs) (Rs.Crs)
21 HT 8 HT Agriculture 682 19,921 Fixed Charges 40 1.06 Fixed Charges 50.00 1.33 Rs/kVA/month Rs/kVA/month 7.156 Energy Charges 3.15 2.25 Energy Charges 2.50 1.79 Full Consumption Full Consumption Total 3.32 Total 3.12 -0.20 -6%
577498 934958 Total Fixed Charges 66.18 Total Fixed Charges 95.66 976.043 Total Variable Charges 351.30 Total Variable Charges 405.56 Total 417.47 Total 501.22 83.75 20%
Employees Consumption 3.332 2.00 0.67 2.50 0.83 0.16 Board's Establishment 0.427 - - - KW + KVA 979.802 GRAND TOTAL 418.14 GRAND TOTAL 502.06 83.91
Lower Assam Electricity Distribution Company Limited Page 65 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VII: Existing and Proposed Tariff LAEDCL
EXISTING TARIFF AND PROPOSED TARIFF Form T20/D20
Existing Tariff Charges - 05-06 Proposed Tariff Charges - 06-07 Sl. Tariff Type of installation Rates No. Category PARTICULARS PARTICULARS Rates (Rs.) (Rs.)
1 LT 1 Jeevan Dhara Fixed Charges - per connection 15.00 Proposed to be merged with Energy Charges per unit 2.00 Dome stic A ( 0 Units - 30 units sla b)
2 LT 2 Domestic A Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month 0.5 to 5 KW 15.00 upto 5 KW 50.00 0.5 to 5 KW 30.00 0.5 to 5 KW 30.00 Energy Charges -Rs/unit Energy Charges -Rs/unit 0 Units to 30 Units / month 2.00 0 Units to 120 Units / month 2.75 31 Units to 120 Units / month 3.00 121 Units to 240 Units / month 3.60 121 Units to 240 Units / month 4.00 Balance Units above 240 Units / month 4.30 Balance Units above 240 / month 5.00
3 LT 3 Domestic B Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month 5 KW to 20 KW 30.00 5 KW to 20 KW 60.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.90 All units 5.00
4 LT 4 Commercial Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month 0.5 KW to 20 KW 110.00 0.5 KW to 20 KW 125.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 4.30 All units 5.00
5 LT 5 General Purpose Supply Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month upto 20 KW 125.00 upto 20 KW 125.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.80 All units 5.00
6 LT 6 Public Lighting Fixed Charges - Rs/KW/month 120.00 Fixed Charges - Rs/KW/month 175.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 4.00 All units 4.50
Lower Assam Electricity Distribution Company Limited Page 66 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VII contd... LAEDCL
Form T20/D20 EXISTING TARIFF AND PROPOSED TARIFF
Sl. Tariff Existing Tariff Charges - 05-06 Proposed Tariff Charges - 06-07 Type of installation Rates No. Category PARTICULARS PARTICULARS Rates (Rs.) (Rs.) 7LT 7 Agriculture Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month upto 7.5 hp 30.00 upto 7.5 hp 50.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 2.15 All units 2.50
8 LT 8(i) Rural Industries Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month upto 25 KVA 30.00 upto 25 KVA 75.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 2.15 All units 2.00
9 LT 8(ii) Urban Industries Fixed Charges - Rs/KW/month Fixed Charges - Rs/KW/month upto 25 KVA 40.00 upto 25 KVA 75.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 2.35 All units 2.35
10 LT 9 Temporary Supply - Domestic Fixed Charges - Rs/KW/day 60.00 Fixed Charges - Rs/KW/day 80.00 OR OR Energy Charges -Rs/unit Energy Charges -Rs/unit All units 5.00 All units 6.50
Temporary Supply - Non Domestic Fixed Charges - Rs/KW/day 100.00 Fixed Charges - Rs/KW/day 125.00 OR OR Energy Charges -Rs/unit Energy Charges -Rs/unit All units 6.00 All units 8.00
11 HT 1 HT Domestic Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month 30.00 150.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.70 All units 4.75
12 HT 2 HT Commercial Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month 115.00 150.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 4.00 All units 5.00
Lower Assam Electricity Distribution Company Limited Page 67 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VII contd... LAEDCL
EXISTING TARIFF AND PROPOSED TARIFF Form T20/D20
Existing Tariff Charges - 05-06 Proposed Tariff Charges - 06-07 Sl. Tariff Type of installation Rates No. Category PARTICULARS PARTICULARS Rates (Rs.) (Rs.) 13 HT 3 Public Water Works Fixed Charges - Rs/KVA/month 125.00 Fixed Charges - Rs/KVA/month 150.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 4.00 All units 4.00 14 HT 4(i) Bulk Supply - Educational Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month 110.00 175.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.70 All units 4.10 15 HT 4(ii) Bulk Supply - Others Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month 145.00 175.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.95 All units 4.50 16 HT 5 HT Small Industries Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month Upto 50 KVA 40.00 Upto 50 KVA 100.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 2.60 All units 2.90 17 HT 5(B) HT-I Industries Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month above 50 KVA and upto 150 KVA 100.00 above 50 KVA and upto 150 KVA 150.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.40 All units 4.20
TOD Tariff for Energy Charges TOD Tariff for Energy Charges 0600 hours to 1700 hours (Normal) 3.40 0600 hours to 1700 hours (Normal) 4.20 1700 - 2200 hours (Peak) 5.00 1700 - 2200 hours (Peak) 6.25 2200 - 0600 hours (night) 2.75 2200 - 0600 hours (night) 3.35 18 HT 5 (C) HT-II Industries Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month above 150 KVA 140.00 above 150 KVA 190.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.55 All units 4.40 TOD Tariff for Energy Charges TOD Tariff for Energy Charges 0600 hours to 1700 hours (Normal) 3.55 0600 hours to 1700 hours (Normal) 4.40 1700 - 2200 hours (Peak) 4.60 1700 - 2200 hours (Peak) 6.50 2200 - 0600 hours (night) 3.00 2200 - 0600 hours (night) 3.50
Lower Assam Electricity Distribution Company Limited Page 68 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VII contd... LAEDCL
EXISTING TARIFF AND PROPOSED TARIFF Form T20/D20
Sl. Tariff Existing Tariff Charges - 05-06 Proposed Tariff Charges - 06-07 Type of installation Rates PARTICULARS Rates (Rs.) No. Category PARTICULARS (Rs.) 19 HT 6 Tea, Coffee and Rubber Fixed Charges - Rs/KVA/month 230.00 Fixed Charges - Rs/KVA/month 250.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.85 All units 4.50
Availability Based Fixed Charges Availability Based Fixed Charges Availability - > 70% 230.00 Availability - > 70% Proposed to Availability - > 60% and upto 69% 225.00 Availability - > 60% and upto 69% be abolished Availability - > 50% and upto 59% 220.00 Availability - > 50% and upto 59% Availability - upto 49% 210.00 Availability - upto 49%
TOD Tariff for Energy Charges TOD Tariff for Energy Charges 0600 hours to 1700 hours (Normal) 3.85 0600 hours to 1700 hours (Normal) 4.50 1700 - 2200 hours (Peak) 5.25 1700 - 2200 hours (Peak) 6.10 2200 - 0600 hours (night) 3.60 2200 - 0600 hours (night) 4.10
Off Season Tariff Off Season Tariff Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month (Minimum of 30% of contracted demand (Minimum of 30% of contracted demand during season period) during season period) Energy Charges -Rs/unit 4.00 Energy Charges -Rs/unit 4.70
20 HT 7 Oil and Coal Fixed Charges - Rs/KVA/month 270.00 Fixed Charges - Rs/KVA/month 300.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.95 All units 4.50
Availability Based Fixed Charges Availability Based Fixed Charges Availability - > 70% 270.00 Availability - > 70% Proposed to Availability - > 60% and upto 69% 265.00 Availability - > 60% and upto 69% be abolished Availability - > 50% and upto 59% 260.00 Availability - > 50% and upto 59% Availability - upto 49% 255.00 Availability - upto 49%
TOD Tariff for Energy Charges TOD Tariff for Energy Charges 0600 hours to 1700 hours (Normal) 3.95 0600 hours to 1700 hours (Normal) 4.50 1700 - 2200 hours (Peak) 5.20 1700 - 2200 hours (Peak) 6.10 2200 - 0600 hours (night) 3.75 2200 - 0600 hours (night) 4.10
21 HT 8 HT Irrigation Fixed Charges - Rs/KVA/month Fixed Charges - Rs/KVA/month above 7.5 hp 40.00 above 7.5 hp 50.00 Energy Charges -Rs/unit Energy Charges -Rs/unit All units 3.15 All units 2.50
Lower Assam Electricity Distribution Company Limited Page 69 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure VIII: Proposed Schedule of Tariff PROPOSED SCHEDULE OF TARIFF
(Proposed to be made effective from 1st April 2006)
ASSAM STATE ELECTRICITY BOARD
LOWER ASSAM ELECTRICITY DISTRIBUTION COMPANY LTD
Lower Assam Electricity Distribution Company Limited Page 70 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
TABLE OF CONTENTS
11
LT Supplies ...... 72 L T Category-I: Domestic A ...... 72 L T Category-II: Domestic-B...... 73 L T Category-III: LT Commercial ...... 73 LT Category IV: LT General Purpose Supply ...... 73 LT Category V: Public Lighting ...... 74 LT Category VI: Agriculture...... 74 LT Category VII: Small Industries...... 75 LT Category VIII: Temporary Supply ...... 75 HT Supplies...... 76 HT Category I: HT Domestic...... 76 HT Category II: HT Commercial...... 76 HT Category III: Public Water Works ...... 77 HT Category IV: Bulk Supply...... 77 HT Category V: HT Small Industries ...... 78 HT Category V: (B) - HT - I Industries ...... 79 HT Category V: (C) - HT-II Industries ...... 80 HT Category VI: Tea, Coffee and Rubber ...... 81 HT Category VII: Oil and Coal...... 82 HT Category VIII: HT Irrigation ...... 83
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SCHEDULE OF TARIFF
ASSAM STATE ELECTRICITY BOARD
LOWER ASSAM ELECTRICITY DISTRIBUTION COMPANY LTD
The tariff applicable in the State of Assam starting from the first meter reading date of April 2006
For the purpose of this schedule the consumers are divided into two distinct groups based on consumption and the nature of supply.
LT Supplies
Supply Voltage 1 Phase 230V AC and 3 Phase 415V AC
L T Category-I: Domestic A Applicability This tariff shall be applicable for supply of power to consumers having connected load up to 5 KW for residential premises, exclusively for domestic purposes only. This shall also include supply of power to occupants of flats in multi-storied buildings, if the premises has not been classified under Domestic B or HT Domestic and receiving bulk power at single point without any individual metering arrangements for domestic purposes.
(a) Tariff:
Energy Charge Fixed Charge
For consumption between 0-1 kWh Rs. 2.00 / kWh Rs. 50 / KW / month per day or 0-30 kWh per month For consumption between 1-4 kWh Rs. 3.00 / kWh Rs. 50 / KW / month per day or 31-120 kWh per month For consumption of next 4 kWh per Rs. 4.00 / kWh Rs. 50 / KW / month day or 121-240 kWh per month
Balance kWh per month Rs. 5.00 / kWh Rs. 50 / KW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5. However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
NOTE: If any part of the domestic connection is utilised for any use other than dwelling purpose like commercial, industrial etc, the entire consumption shall be treated as the case may be, for corresponding category and the respective tariff shall be applied for the entire consumption.
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L T Category-II: Domestic-B Applicability This tariff shall be applicable for supply of power to consumers having Connected Load above 5 KW and up to 20 KW exclusively for domestic purposes only. This shall also include supply of power to occupants of flats in multi-storied buildings, receiving bulk power at single point with individual metering for domestic purposes.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 5.00 / kWh Rs. 60 / KW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5.
NOTE: If any part of the domestic connection is utilised for any use other than dwelling purpose like commercial, industrial etc, the entire consumption shall be treated as the case may be, for corresponding category and the respective tariff shall be applied for the entire consumption.
L T Category-III: LT Commercial Applicability This tariff shall be applicable for supply of power to consumers having Connected Load up to 20 KW to all establishments and institutions of commercial nature and connected with trading activities, including commercial offices, Government and public sector commercial installations, commercial house, optical houses, shops, hotels, restaurants, bars, refreshment stalls, showcases of advertisements, theaters, cinema halls, guest houses, laundries, dry-cleaners, Railway stations, public and private bus stands not covered under any other category of consumers, copy works, X- ray installations, private nursing homes/clinical laboratories, photographic studios., battery charging units, workshop, petrol pumps, factory & printing presses not using motive power in the manufacturing process, private educational and cultural institutions, lodging and boarding houses.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 5.00 / kWh Rs. 125 / KW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5. However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
LT Category IV: LT General Purpose Supply Applicability This tariff shall be applicable for supply of power to consumers having Connected Load up to 20 KW to all non-commercial and non-domestic users of electric power like, Government offices, semi-Government educational and cultural institutions, Government, hospita1s, dispensaries,
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charitable institutions and Trusts (public or private formed solely for charitable or religious purposes), dharamshalas, non-commercial boarding and lodging houses and other non-commercial institutions.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 5.00 / kWh Rs. 125 / kW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5. However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
LT Category V: Public Lighting Applicability This tariff is applicable to supply of power for street lighting systems in municipalities, Town committees and panchayats etc, signal systems in roads, park lighting in areas of municipality / Town committee, panchayat etc.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 4.50 / kWh Rs. 175 / kW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5. However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
LT Category VI: Agriculture Applicability This tariff is applicable to supply of power for agriculture / irrigation purpose in the agricultural sector for pump sets up to 7.5 HP.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 2.50 / kWh Rs. 50 / kW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5 However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
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LT Category VII: Small Industries Applicability This tariff is applicable for supply of power for industrial purposes for consumers having Contract Demand / Connected Load up to 25 KVA.
(a) Tariff:
Energy Charge Fixed Charge
Rural Industries-For all consumption Rs. 2.00 / kWh Rs. 75 / kW / month
Urban Industries-For all consumption Rs. 2.35 / kWh Rs. 75 / kW / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5and the nearest lower KW if the decimal is lower than 0.5. However, in case of consumers whose connected load is less than or equal to 0.5 kW, the actual connected load shall be considered while computing the monthly fixed charge.
LT Category VIII: Temporary Supply Applicability This tariff will be applicable for electric supply of power that is temporary, in nature for a period not exceeding, one month.
Charges
Domestic Rs. 80 / KW / day or Rs. 6.50 / kWh whichever is higher
Non Domestic Rs. 125 / KW / day or Rs. 8.00 / kWh whichever is higher
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HT Supplies
Tariff for this group is applicable for those consumers availing power supply at 11 KV or above: Calculations shall be deemed to be in KVA basis for consumers under this part of tariff schedule
HT Category I: HT Domestic Applicability This tariff shall be applicable for supply of power to consumers having Connected Load above 25 KVA to resident at premises, exclusively for domestic purposes only. This shall also include supply of power to occupants of flats in multi-storied buildings/residential colony, receiving bulk power at single point with single metering for domestic purposes.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 4.75 / kWh Rs. 150 / KVA / month
For the purpose of determination of Monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decima1 is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing, an additional energy consumption on account of transformer loss computed @ 3% on the consumer's energy charge shall be added.
NOTE: If any part of the domestic connection is utilised for any use other than dwelling purpose like commercial, industrial etc, the entire consumption shall be treated as the case may be, for corresponding category and the respective tariff shall be applied for the entire consumption.
HT Category II: HT Commercial Applicability This tariff shall be applicable for supply of power to consumers having Connected Load above 25 KVA to all establishments and institutions of commercial nature and connected with trading activities, including commercial offices, Government and public sector commercial installations, commercial houses, political houses, shops, restaurants, hotels, bars, refreshment stalls, showcases of advertisements, theatres, cinema halls, guest houses, laundries, dry-cleaners, Railway stations, public and private bus-stands not covered under any other category of consumers, copy works, X- ray installations, private nursing homes/clinical laboratories, photographic studios, battery charging units, workshop, petrol pumps, factory & printing presses not using motive power in the manufacturing process, private educational and cultural institutions, lodging and boarding houses.
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(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 5.00 / kWh Rs. 150 / KVA / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decima1 is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side .of the distribution transformer, then for the purpose of billing an additional energy charge on account of transformer loss computed @ 3% on the consumer's energy charge shall be added.
HT Category III: Public Water Works Applicability This tariff is applicable for public water supply maintained by Government or Government corporations, municipalities, town committees and panchayats.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 4.00 / kWh Rs. 150 / KVA / month
For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer for a group of consumers receiving power, than for the purpose of billing an additional energy consumption on account of transformer loss computed @ 3% on the consumer's energy charge shall be added.
HT Category IV: Bulk Supply. Applicability This tariff is applicable to Bulk consumers with a Connected Load not less than 25 KVA provided that the consumers not covered by any other category such as any domestic connection, industries, tea etc and who make their own internal distribution arrangement at their own cost and receive power at the point of supply at high or extra high voltage. This is further classified as under.
(i) Government educational institution-like universities, engineering colleges, medical colleges with residential facilities and
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(ii) Others
N.B. - Any existing "General Purpose" Category consumer whose Connected Load is above 25 KVA will automatically be converted to 'Bulk Other' Category.
(a) Tariff: (i) Bulk Government educational institutions
Energy Charge Fixed Charge
For all consumption Rs. 4.10 / kWh Rs. 175 / KVA / month
(ii) Others
Energy Charge Fixed Charge
For all consumption Rs. 4.50 / kWh Rs. 175 / KVA / month
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy consumption for each higher level of voltage.
In case, metering is done on the LT side of the distribution transformer, then for the purpose of billing an additional energy charge on account of transformer loss computed @ 3% on the consumer's energy charge shall be added
(c) Contract Demand: The Contract Demand shall be between 70% to 105% as declared by the consumer of the Connected Load converted to KVA at 0.85 power factor. In case declaration option is not made by the consumer within the stipulated time, 100% of the Connected Load converted to KVA shall per the Contract Demand.
(d) Billable Demand: Billing demand shall be 100% of Contract Demand of Recorded Demand, whichever is higher. In case the meters remain defective in a month, Billing Demand shall be considered on the average Billing Demand of the last three months when the meter was in order.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the Contract Demand in a month, then fixed charge based on Contract Demand shall be levied at three times the normal rate for the portion of demand exceeding the Contract Demand.
HT Category V: HT Small Industries Applicability This tariff is applicable for supply of power for industrial purposes for consumers with Connected Load above 25 KVA and up to 50 KVA irrespective of location of the industry in rural area or urban area.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 2.90 / kWh Rs. 100 / KVA / month
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For the purpose of determination of monthly fixed charge, the Connected Load shall be rounded up to the next higher KW if the decimal is higher than 0.5 and the nearest lower KW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing, an additional energy charge on account of transformer loss computed @ 3% on the consumer's energy charge shall be added.
HT Category V: (B) - HT - I Industries Applicability This tariff is applicable for supply of power to consumers at a single point for industrial purposes with Contract Demand / Connected Load above 50 KVA to 150 KVA.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 4.20 / kWh Rs. 150 / kVA / month
Time-Of-The-Day (TOD) tariff T.O.D. tariff for HT - I. Industries
Fixed Charge: Rs 150 / kVA / month Energy Charge
Description Energy Charge
Time
0600-1700 hrs (normal) Rs 4.20 / kWh
1700-2200 hrs (peak) Rs 6.25 / kWh
2200-0600 hrs (night) Rs 3.35 / kWh
For supply at voltages higher than as applicable to the consumers as per section 22 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing, an additional energy charge on account of transformer loss computed @ 3% on .the consumer’s Energy Charge shall be added.
(c) Contract Demand: The Contract Demand shall be between 70% to 105% of the Connected Load as declared by the consumer converted to KVA at 0.85 power factor. In case
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declaration / option is not made by the consumer within the stipulated time, 100% of the Connected Load converted to KVA shall be the Contract Demand.
(d) Billable Demand: Billing demand shall be 100% of Contract Demand of Recorded Demand, whichever is higher. In case the meters remain defective in a month, Billing Demand shall be considered on the average Billing Demand of the last three months when the meter was in order.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the Contract Demand in a month, then fixed charge based on Contracted Demand shall be levied at three times the normal rate for the portion of demand exceeding the Contracted Demand.
HT Category V: (C) - HT-II Industries Applicability
This tariff is applicable for supply of power at single point for industrial purposes where the Contract Demand / Connected Load is above 150 KVA.
(a) Tariff:
Energy Charge Fixed Charge
For all consumption Rs. 4.40 / kWh Rs. 190 / KVA / month
Optional Time-Of-The-Day (T.O.D) tariff T.O.D. tariff for HT - II Industries Fixed charge: Rs 190 / kVA / month Energy Charge
Energy Charge Description Time
0600-1700 hrs (normal) Rs 4.40 / kWh 1700-2200 hrs (peak) Rs 6.50 / kWh 2200-0600 hrs (night) Rs 3.50 / kWh
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing an additional energy charge on account of transformer loss computed @ 3% on the consumer's energy charge shall be added.
(c) Contract Demand: The Contract Demand shall be between 70% to 105% of the Connected Load as declared by the consumer converted to KVA at 0.85 power factor. In case declaration / option is not made by the consumer within the stipulated time, 100% of the Connected Load converted to KVA shall be the Contract Demand.
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(d) Billable Demand: Billing demand shall be 100% of Contract Demand of Recorded Demand, whichever is higher. Incase the meters remain defective in a month, Billing Demand shall be considered on the average Billing Demand of the last three months when the meter was in order.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the Contract Demand in a month, then fixed charge based on Contract Demand shall be levied at three times the normal rate for the portion of demand exceeding the Contract Demand.
HT Category VI: Tea, Coffee and Rubber Applicability
This tariff is applicable for tea, coffee and rubber, plantation / production by utilisation of electrical power in factory, irrigation / lighting etc. in the Estate.
(a) Tariff (i) Seasonal Tariff (April to November)
Energy Charge Fixed Charge
For all consumption Rs. 4.50 / kWh Rs. 250 / KVA month
Time-Of-The-Tariff (T.O.D) tariff applicable T.O.D. tariff for Tea, Coffee & Rubber (for the whole year) Fixed Charge: Rs 250 / kVA / month Energy Charge Energy Charge Description
Time
0600-1700 hrs (normal) Rs 4.50 / kWh 1700-2200 hrs (peak) Rs 6.10 / kWh 2200-0600 hrs (night) Rs 4.10 / kWh
Off-Season Tariff (December to March) Off-Season energy charge for Tea, Coffee & Rubber Rs 4.70/kwh
Consumer under this category shall have the option to select any continuous 4 (four) months period between September to March in lieu of -normal off-season of December to March. Such option must be exercised on or before 31st August2006 for the financial year of 2006-07.
Off-Season fixed charge for Tea, Coffee, & Rubber minimum 30% of contracted demand during season period.
No benefit of T.O.D tariffs can be availed by consumers if they opt for the off-season tariff option.
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For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity. Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing, and additional energy charge on account of transformer loss computed @3% on the consumer's energy charge shall be added.
(c) Contract Demand: The Contract Demand shall be between 70% to 105% of the Connected Load as declared by the consumer converted to KVA at 0.85 power factor. In case declaration / option is not made by the consumer within the stipulated time, 100% of the Connected Load converted to KVA shall be the Contract Demand.
(d) Billable Demand: Billing demand shall be 100% of Contract Demand of Recorded Demand, whichever is higher. In case the meters remain defective in a month, Billing Demand shall be considered on the average Billing Demand of the last three months when the meter was in order.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the Contract Demand in a month, then fixed charge based on Contract Demand shall be levied at three times the normal rate for the portion of demand exceeding the Contract Demand.
HT Category VII: Oil and Coal Applicability This tariff shall be applicable for supply of power to consumers at a single point for coal and oil installations.
(a) Tariff
Energy Charge Fixed Charge
For all consumption Rs. 4.50 / kWh Rs. 300 / KVA / month
(i) Time-Of-The-Day (T.O.D.) tariff T.O.D. tariff for Oil & Coal Fixed Charge: Rs 300 / kVA / month Energy Charge: Net Energy charge Description
Time 0600-1700 hrs (normal) Rs 4.50 / kWh 1700-2200 hrs (peak) Rs 6.10 / kWh 2200-0600 hrs (night) Rs 4.10 / kWh
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable on energy charge for each higher level of voltage. .
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In case, metering is done on the L.T side of the distribution transformer, then for the purpose of billing an additional energy consumption on account of transformer loss, computed @ 3% on the consumers energy charge shall be added.
(c) Contract Demand: The Contract Demand shall be between 70% to 105% of the Connected Load as declared by the consumer converted to KVA at 0.85 power factor. In case declaration / option is not made by the consumer within the stipulated time, 100% of the Connected Load converted to KVA shall be the Contract Demand.
(d) Billable Demand: Billing demand shall be 100% of Contract Demand of Recorded Demand, whichever is higher In case the meters remain defective in a month, Billing Demand shall be considered to be the average Billing Demand of the last three months when the meter was in order.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the Contract Demand in a month, then fixed charge based on Contract Demand shall be levied at three times the normal rate for the portion of demand exceeding the Contract Demand.
HT Category VIII: HT Irrigation Applicability This tariff shall be applicable for electricity supply for agriculture / irrigation purpose in the agricultural sector where the Connected Load exceeds 7.5 HP and for whom power has been supplied at 11 KV or above.
(a) Tariff
Energy Charge Fixed Charge
For all consumption Rs. 2.50 / kWh Rs. 50 / KVA / month
For supply at voltages higher than as applicable to the consumers as per section 2.2 of the AERC Electricity Supply Code and related matters. Rebate @ 3% shall be applicable an energy charge for each higher level of voltage.
In case, metering is done an the L.T side of the distribution transformer, then for the purpose of billing, an additional energy charge on account of transformer less computed @ 3% an the consumer’s energy charge shall be added.
The above rates and charges shall be subject to the following clauses:
i. Fuel Adjustment Surcharge (FAS)
The above rates and charges shall be subject to Fuel Adjustment Surcharge (FAS). The FAS rate in respect of any financial year shall be equal to the total Fuel Adjustment Surcharge payable by the distribution company to ASEB Trading divided by the total quantum of energy billed during the same period and shall be applicable equally on all categories of consumers. FAS shall be levied on a provisional basis from time to time and shall be subject to a final adjustment on completion of audit in respect of each financial year.
ii. Import Adjustment Surcharge (IAS)
The above rates and charges shall be subject to Import Adjustment Surcharge (IAS). The IAS rate in respect of any financial year shall be equal to the total Fuel Adjustment Surcharge payable by the distribution company to ASEB Trading divided by the total quantum of energy billed during the same period and shall be applicable equally on all categories of consumers. IAS shall be levied on a provisional basis from time to time and
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shall be subject to a final adjustment on completion of audit in respect of each financial year.
iii. Delayed Payment Surcharge (DPS)
Delayed Payment Surcharge (DPS) shall be levied on the total amount of the electricity bill @ 1.5% per month or part thereof at simple interest if full payment is not made on or before the due date of the bill.
In case payment is made by cheque and the cheque is subsequently dishonoured, DPS shall be levied from the due date of the original bill. In addition, payment in respect of the dishonoured amount shall need to be made only in cash or through Demand Draft but not through cheque payment. This shall be in addition to any other rights that the distribution company may have under the law and as specified in the terms and conditions of supply.
iv. Power Factor Rebate or Penalty
(c) Power Factor Penalty: In case the average power factor in a month falls below 85%, a penalty @ 1% for every 1% fall in average power factor from 85% to 60% plus 2% for every 1% fall in average power factor below 60% to 30% plus 3% for every 1% fall in power factor below 30% shall be levied on the total energy charge. Power factor penalty shall be levied on all HT consumers, irrespective of whether the metering is done through electronic or electro-mechanical devices.
(d) Power Factor Rebate: In case the average power factor in a month is more than 90%, a rebate @ 0.5% for every 1% increase in average power factor from 90% shall be applicable on the total energy charge. Power factor rebate shall be applicable on all HT consumers, irrespective of whether the metering is done through electronic or electro-mechanical devices.
v. Statutory Levies
Any increase in operating costs due to variation or imposition of any statutory levy by the Government of India, Government of Assam or any other competent authority in respect of energy purchased or distributed by the distribution company shall be recovered from its consumers as a surcharge on the standard rates mentioned in this Schedule of Tariff.
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Annexure IX
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Annexure IX contd..
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Annexure IX contd..
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Annexure IX contd..
Lower Assam Electricity Distribution Company Limited Page 88 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – I
ASSAM POWER GENERATION CORPORATION LIMITED OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 89 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – II
ASSAM ELECTRICITY GRID CORPORATION LIMITED OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 90 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – III
UPPER ASSAM ELECTRICITY DISTRIBUTION COMPANY LIMITED OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 91 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – IV
CENTRAL ASSAM ELECTRICITY DISTRIBUTION COMPANY LIMITED OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 92 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – V
LOWER ASSAM ELECTRICITY DISTRIBUTION COMPANY LIMITED OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 93 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure IX contd.. SCHEDULE – VI
ASSAM STATE ELECTRICITY BOARD OPENING BALANCE SHEET AS ON APRIL 01st, 2005
Lower Assam Electricity Distribution Company Limited Page 94 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure X: Profit and Loss Account Form-A1 PROFIT & LOSS ACCOUNT (Rs in Crs) Ref PARTICULARS 2004-05 2005-06 2006-07 Form-No Transmission Distribution ASEB Trader Transmission Distribution ASEB Trader Transmission Distribution ASEB Trader AT1/T1/D1 ENERGY AVAILABLE (MU) 3281.06 3010.37 3281.06 3560.63 3293.58 3560.63 AT2/T2/D2 ENERGY SOLD (MU) 3010.37 2162.13 3281.06 3293.58 2354.98 3560.63 T & D LOSS (%) 8.25% 28.18% 0.00% 7.50% 28.50% 0.00% INCOME D2 REVENUE FROM SALE OF POWER 56.14 967.87 719.35 49.81 1,244.66 928.03 AT3/T3/D3 REV SUBSIDIES & GRANTS * 49.00 AT4/T4/D4 OTHER INCOME 8.94 47.01 25.00 9.39 49.36 59.62 TOTAL 65.08 1014.88 793.35 59.20 1294.02 987.65 EXPENDITURE AT1/D1 PURCHASE OF POWER - 719.35 719.35 - 928.04 832.25 AT5/T5/D5 REPAIRS & MAINTENANCE 5.90 16.22 - 7.75 22.14 - AT6/T6/D6 EMPLOYEES COSTS 43.61 225.29 1.25 43.17 223.03 1.30 AT7/T7/D7 ADM & GENERAL EXPENSES 2.07 15.03 0.75 2.63 19.22 0.85 AT8/T8/D8 DEPRECIATION AND RELATED DTS 3.54 23.47 - 0.93 40.78 - AT9/T9/D9 INTEREST & FINANCE CHARGES 9.96 41.90 7.99 20.89 50.25 10.33 SUB-TOTAL 65.08 1041.26 729.34 75.37 1283.46 844.73 T10/D10 LESS: EXPENSES CAPITALISED: -INTEREST & FINANCE CHARGES CAPITALISED - 0.00 - 16.16 20.23 - -OTHER EXPENSES CAPITALISED SUB-TOTAL 0.000 0.000 0.000 16.160 20.230 0.000 AT11/T11/D11 OTHER DEBITS - 28.91 53.86 - 30.81 142.92 AT12/T12/D12 EXTRAORDINARY ITEMS TOTAL EXPENDITURE 65.08 1070.17 783.20 59.21 1294.04 987.65 PROFIT (LOSS) BEFORE TAX PROVISION FOR INCOME TAX PROFIT (LOSS) AFTER TAX AT13/T13/D13 NET PRIOR PERIOD CREDITS SURPLUS/DEFICIT(-) 0.00 -55.29 10.15 -0.01 -0.01 0.00
AT17/T17/D17 NET ASSETS AT THE BEGINNING OF THE YEAR 27.31 239.73 - 26.23 198.96 - RATE OF RETURN
Note 1 Details of Other Debits for ASEB Trader for FY 2005-06 and 2006-07are provided in the petition of ASEB Trader in Format D11. Note 2 FY 2005-06 figures are based on latest revised estimates. Note 3 Data for 2004-05 is not available for individual entities.
Lower Assam Electricity Distribution Company Limited Page 95 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure XI: Other Debits LAEDCL Form-AT11/T11/D11 Other Debits (Rs in Crs) Sl No Particulars 2004-05 2005-06 2006-07
1 Provision for Doubtful Debts 9.61 10.45 2 Interest on Security Deposit 2.05 2.05
Grand Total 11.66 12.50
Note: 2004-05 data not available
Lower Assam Electricity Distribution Company Limited Page 96 of 97
Petition for Approval of ARR and Revision of Tariff for FY 2006-07
Annexure XII: Status of Hon’ble Commission’s formats
List of Hon’ble Commission’s formats for which data has been furnished in the Tariff Petition for FY 2006-07
As applicable for Transmission, Distribution Companies and ASEB Trader
Formats for which data A1, D1, D2, D4, D5, D6, D6A, D7, D8, D9, D10, D11, D15, has been submitted D16, D20, D21
Formats for which data A2, A3, A4, D14, D17, D18, D18A, D19A, D23 was not readily available
Formats which are found D3, D9A, D12, D13, D22, D24 not to be relevant
Note: The data submitted as per the above formats has been incorporated in the petition either as Tables or as Annexures.
Lower Assam Electricity Distribution Company Limited Page 97 of 97