Tariff Petition for FY 2021-22 Which Includes Annual Performance Review (APR) for FY 2020-21

Home , North Bihar

BEFORE

THE HON’BLE BIHAR ELECTRICITY REGULATORY COMMISSION

FILING OF THE PETITION FOR TRUE UP FOR FY 2019-20,

ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2020-21

AND

ANNUAL REVENUE REQUIREMENT (ARR) FOR FY 2021-22

FILED BY, SOUTH BIHAR POWER DISTRIBUTION COMPANY LIMITED, PATNA

CHIEF ENGINEER (COMMERCIAL), SBPDCL

2nd FLOOR, VIDYUT BHAWAN, BAILEY ROAD, PATNA - 800 001

South Bihar Power Distribution Company Limited

Contents

1. Introduction ...... 10 1.1. Background ...... 10 1.2. Profile of SBPDCL ...... 11 1.3. Procedural History ...... 12 1.4. Judgement of Hon’ble Supreme Court vide Appeal no 239-240 of 2019 dated 4th Feb 2019 ...... 14 1.5. Judgment of Hon’ble APTEL on Appeal No. 141 and Appeal No. 142 of 2016 ...... 14 1.6. Appeal no 225/2019 ...... 16 1.7. Appeal no 293 and 294 of 2019 ...... 16 1.8. Appeal no 278 of 2019 ...... 16 1.9. Appeal no 154 of 2017 ...... 16 1.10. Review Petition and APTEL Appeal against Tariff Order dated 20th March 2020 ...... 16 1.11. Instant Petition ...... 17 1.12. Contents of the Petition ...... 18 2. Overall approach for present filing ...... 19 2.1. Present Approach ...... 19 2.2. Data and information sources for estimating the Aggregate Revenue Requirement ...... 19 3. True-up Summary for FY 2019-20 ...... 20 3.1. Preamble ...... 20 3.2. Number of Consumers, Connected Load and Sales ...... 20 3.3. AT&C Loss ...... 22 Collection Efficiency ...... 24 Calculation of AT&C Loss ...... 24 3.4. Transmission losses ...... 25 3.5. Power Purchase ...... 25 3.6. Actual Power Purchase quantum ...... 27 3.7. Energy Balance ...... 29 3.8. Power Purchase Cost ...... 30 3.9. Transmission charges ...... 36 3.10. Disallowance of power purchase due to excess Distribution loss ...... 36 3.11. Capital Investment Plan, Capitalization and Funding ...... 39 3.12. Gross Fixed Assets ...... 40 3.13. Depreciation ...... 40 3.14. Other finance charges ...... 41 3.15. Operation & Maintenance charges ...... 42 3.16. Interest on working capital ...... 47 3.17. Return on Equity ...... 49 3.18. Interest on Loans ...... 50 3.19. Interest on Consumer Security Deposit ...... 51 3.20. Non-Tariff income ...... 52 3.21. Revenue from Sale of Power at Existing Tariff ...... 53 South Bihar Power Distribution Company Limited

3.22. Net ARR and revenue gap for FY 2019-20 ...... 54 4. APR Summary for FY 2020-21 ...... 58 4.1. Preamble ...... 58 4.2. Estimate of category wise number of consumers, connected load and sales for FY 2020-21 ...... 58 4.3. Distribution Loss ...... 61 4.4. State Transmission losses ...... 64 4.5. Central Transmission Loss...... 64 4.6. Power Purchase ...... 64 4.8. Power Purchase Cost ...... 71 4.9. Transmission Charges ...... 75 4.10. Capital Investment Plan, Capitalization and Funding ...... 75 4.11. Operation & Maintenance (O&M) Expenses ...... 77 4.12. Gross Fixed Assets ...... 80 4.13. Depreciation on Gross Fixed Assets ...... 81 4.14. Return of Equity ...... 82 4.15. Interest on Consumer Security Deposit ...... 83 4.16. Interest on Working Capital ...... 83 4.17. Non-Tariff Income ...... 85 4.18. Interest on Normative Debt ...... 86 4.19. Other Finance Charges ...... 87 4.20. Revenue from Sale of Power at Existing Tariff ...... 87 4.21. Net ARR and Revenue Gap for FY 2020-21 ...... 88 5. Annual Revenue Requirement (ARR) for FY 2021-22 ...... 90 5.1. Preamble ...... 90 5.2. Historical Assessment of Number of Consumers and Sales ...... 90 5.3. Projected Sales (MU), Number of Consumers and Connected Load for 2021-22 ...... 92 5.4. Distribution Loss ...... 99 5.5. State Transmission Losses ...... 104 5.6. Central Transmission Losses ...... 104 5.7. Power Purchase ...... 104 5.8. Energy Balance ...... 108 5.9. Renewable Power Purchase Obligation ...... 109 5.11. Transmission Charges ...... 116 5.12. Capital Investment Plan, Capitalization and Funding ...... 116 5.13. Gross Fixed Assets ...... 118 5.14. Depreciation on GFA ...... 118 5.15. Interest on Loans ...... 119 5.16. Other Financial Charges...... 121 5.17. Operation & Maintenance (O&M) Expenses ...... 121 5.18. Return on Equity ...... 124 5.19. Interest on Consumer Security Deposit ...... 125 5.20. Interest on Working Capital ...... 126 5.21. Non-Tariff Income ...... 127 South Bihar Power Distribution Company Limited

5.22. Revenue from Sale of Power at Existing Tariff ...... 128 5.23. Annual Revenue Requirement for FY 2021-22 ...... 129 5.24. Net Gap at Existing Tariff ...... 129 5.25. Revenue from Sale of Power at Proposed Tariff ...... 130 5.26. Revenue gap for FY 2021-22 at proposed tariff ...... 131 6. Voltage-wise cost of supply ...... 132 6.1. Preamble ...... 132 6.2. Background ...... 132 6.3. Methodology adopted for Computation of Voltage wise Cost of Supply ...... 132 6.4. Determination of Voltage wise Losses ...... 133 6.5. Information required for arriving Voltage Wise Cost of Supply ...... 133 6.6. Methodology adopted for determination of Cost of Supply ...... 134 7. Miscellaneous and General Charges ...... 138 7.1. Schedule of Miscellaneous and General Charges ...... 138 7.2. SLC charges...... 138 7.3. Security Deposit ...... 140 8. Wheeling and Open Access Charges ...... 142 8.1. Background ...... 142 8.2. Wheeling Charges ...... 142 8.3. Cross Subsidy Surcharge ...... 143 8.5. Parallel Operating Charges ...... 146 8.6. Reactive Energy charges ...... 146 8.7. Standby Charges...... 146 8.8. Congestion Charges...... 147 9. Proposed Tariff schedule for FY 2020-21 ...... 148 9.1. Roadmap for reduction of Cross Subsidy Surcharge ...... 148 9.2. Simplification of tariff structures for electricity consumers in Bihar ...... 148 9.3. Terms and Conditions of Low Tension Tariff ...... 161 9.4. Terms and Conditions of High Tension Tariff ...... 168 10. Directives – FY 2020-21 (Q1 and Q2) ...... 176 Annexure A – Additional Data Submission to BERC ...... 218 a) Annexure: Government of Bihar notification for capital infusion ...... 218 b) Annexure: Board Resolution for admittance and payment of Power Purchase & Transmission charges bills between NBPDCL & SBPDCL ...... 220 11. Tariff Formats ...... 221

South Bihar Power Distribution Company Limited

List of tables

Table 1: Existing distribution infrastructure of SBPDCL ...... 11 Table 2: DISCOMs’ Areas and Circles ...... 11 Table 3: Procedural History of Filing ...... 12 Table 4: Highlights of the Hon’ble APTEL Judgment dated 25.11.2016 ...... 15 Table 5: Number of Consumers as on 31st March 2020 ...... 20 Table 6: Total connected load (in kW) ...... 21 Table 7: Total Energy Sales (in MU) for FY 2019-20 ...... 22 Table 8: Distribution Losses (in %) ...... 23 Table 9: Collection Efficiency (in %) ...... 24 Table 10: AT&C loss (in %) ...... 24 Table 11: Renewable Purchase Obligation (%) ...... 26 Table 12: RPO met for FY 2019-20 ...... 26 Table 13: Actual Power Purchased (MU) in FY 2019-20 ...... 27 Table 14: Energy balance (MU) in FY 2019-20 ...... 29 Table 15: Actual Power Purchased (MU) in FY 2019-20 ...... 32 Table 16: PGCIL, POSCO, ERLDC and Open Access charges ...... 36 Table 17: State transmission charges ...... 36 Table 18: Gains/(Loss) on account of truing up of Power Purchase Expenses for FY 2019-20 (Rs. Crore) ...... 38 Table 19: Gains/(Loss) on account of controllable and uncontrollable factors for FY 2019-20 (Rs. Crore) ...... 38 Table 20: CWIP, Capex, Capitalization and Funding (in INR Crore) ...... 39 Table 21: Gross Fixed Assets (in INR Crore) ...... 40 Table 22:Depreciation (in INR Crore) ...... 41 Table 23: Gains/(Loss) on account of Depreciation for FY 2019-20 (Rs. Crore) ...... 41 Table 24: Other Finance charges (in INR Crore) ...... 42 Table 25: Gains/(Loss) on account of due to other finance charges for FY 2019-20 (Rs. Crore) ...... 42 Table 26: Employee expenses (in INR Crore) ...... 44 Table 27: Gains/(Loss) on account of due to Employee expenses for FY 2019-20 (Rs. Crore) ...... 44 Table 28: Gains/(Loss) on account of due to R&M expenses for FY 2019-20 (Rs. Crore) ...... 45 Table 29: A&G expenses (in INR Crore) ...... 45 Table 30: Gains/(Loss) on account of due to A&G expenses for FY 2019-20 (Rs. Crore) ...... 45 Table 31: Holding cost (in INR Crore) ...... 46 Table 32: Gains/(Loss) on account of due to Holding company expenses for FY 2019-20 (Rs. Crore) ....46 Table 33: O&M expenses (in INR Crore) ...... 46 Table 34: Interest on working capital (in INR Crore) ...... 47 Table 35: Gains/(Loss) on account of due to Interest on working capital (in INR Crore) ...... 48 Table 36: Return on equity (in INR Crore) ...... 49 Table 37: Gains/(Loss) on account of due to RoE (in INR Crore) ...... 50 Table 38: Interest on Loans Claimed for FY 2019-20 (in INR Crore) ...... 50 South Bihar Power Distribution Company Limited

Table 39: Interest on Loans Claimed for FY 2019-20 (in INR Crore) ...... 51 Table 40: Gains/(Loss) on account of due to Interest on Loan (in INR Crore) ...... 51 Table 41: Interest on Consumer Security Deposit (in INR Crore) ...... 52 Table 42: Gains/(Loss) on account of due to Interest on Security Deposit (in INR Crore) ...... 52 Table 43: Non-Tariff Income (in INR Crore) ...... 52 Table 44: Revenue from sales of power at existing tariff ...... 53 Table 45: Net Gap to be passed in Tariff for true up of FY 2019-20 (in INR Crore) ...... 54 Table 46: Net ARR and revenue gap for FY 2019-20 (in INR Crore) ...... 56 Table 47: Category-wise no. of consumers projected for FY 2020-21 ...... 58 Table 48: Category-wise sales (MUs) projected for FY 2020-21 ...... 60 Table 49: Category-wise connected load (kW) for FY 2020-21 ...... 60 Table 50: Distribution loss ...... 64 Table 51: Collection Efficiency ...... 64 Table 52: AT&C Loss ...... 64 Table 53: Details of RPO to be met for FY 2020-21 (APR) ...... 66 Table 54: Power purchase allocation projected for FY 2020-21 (in MU) ...... 68 Table 55: Energy Balance for APR FY 2020-21 ...... 70 Table 56: Power Purchase Projection for APR for FY 2020-21 ...... 72 Table 57: Transmission charges for APR (in INR Crore) ...... 75 Table 58: Capitalization plan for FY 2020-21 (in INR Crore) ...... 76 Table 59: CWIP, Capitalization and Funding of Capitalization projected for FY 2020-21 (in INR Crore) ...76 Table 60: Employee expenses (in INR Crore) ...... 77 Table 61: R&M Expenses for APR (in INR Crore) ...... 78 Table 62: A&G expenses (in INR Crore) ...... 78 Table 63: Allocation of Holding Company Cost for FY 2020-21 (in INR Crore) ...... 79 Table 64: Summary of O&M Expenses for APR (in INR Crore) ...... 80 Table 65: Summary GFA for FY 2020-21 (in INR Crore) ...... 80 Table 66: Depreciation on GFA for APR (in INR Crore) ...... 81 Table 67: Return on equity for FY 2020-21 (in INR Crore) ...... 82 Table 68: Interest on consumer security deposit (in INR Crore) ...... 83 Table 69: Interest on working capital for APR (in INR Crore) ...... 84 Table 70: Net-Non-tariff income for APR (in INR Crore) ...... 85 Table 71: Computation of weighted average rate of interest on project loans (in INR Crore) ...... 86 Table 72:Interest on Normative debt (in INR Crore) ...... 86 Table 73: Other finance charges (in INR Crore) ...... 87 Table 74: Revenue from sales of power at existing tariff for FY 2020-21 (in INR Crore) ...... 87 Table 75: Revenue requirement for FY 2020-21 (in INR Crore) ...... 88 Table 76: Category wise number of consumer for past few years ...... 90 Table 77: Category wise sales for the past few years (in MU) ...... 91 Table 78: Category-wise no. of consumers projected for 2021-22 ...... 92 Table 79: Category-wise sales projected for 2021-22 ...... 93 Table 80: AT&C loss projection (in %) ...... 102 Table 81:Plant Addition in FY 2020-21 & FY 2021-22 ...... 105 South Bihar Power Distribution Company Limited

Table 82: Total power purchase for FY 2021-22 (MW & MUs) ...... 106 Table 83: Energy Balancing for ARR for FY 2021-22 ...... 108 Table 84: Renewable energy purchase obligation for FY 2021-22 ...... 110 Table 85: Detailed power purchase costs for FY 2021-22 (in INR Crore) ...... 112 Table 86: Transmission charges for ARR (in INR Crore) ...... 116 Table 87: Capitalization in 2021-22(in INR Crore) ...... 116 Table 88: Capital works in progress for 2021-22(in INR Crore)...... 117 Table 89: GFA for FY 2021-22 (in INR Crore) ...... 118 Table 90: Depreciation on GFA (in INR Crore) ...... 119 Table 91: Detailed loan schedule for FY 2021-22 (in INR Crore) ...... 120 Table 92: Interest on normative debt for 2021-22 (in INR Crore) ...... 120 Table 93: Other finance charges (in INR Crore)...... 121 Table 94: Employee expenses (in INR Crore) ...... 122 Table 95: R&M Expense (in INR Crore) ...... 123 Table 96: A&G expenses (in INR Crore) ...... 123 Table 97: Holding company cost for 2021-22 (in INR Crore) ...... 124 Table 98: Return on equity for ARR (in INR Crore) ...... 125 Table 99: Interest on consumer security deposits (in INR Crore) ...... 126 Table 100: Interest on working capital for FY 2021-22 (in INR Crore) ...... 127 Table 101: Non-tariff income for ARR (in INR Crore) ...... 128 Table 102: Revenue from sale of power at existing tariff for FY 2021-22 (in INR Crore) ...... 128 Table 103: Net ARR for 2021-22 (in INR Crore) ...... 129 Table 104: Unrecovered Gap for FY 2019-20 along with carrying cost (in INR Crore) ...... 130 Table 105: Net revenue gap at existing tariff for FY 2021-22 ...... 130 Table 106: Cumulative revenue gap/(surplus) till FY 2021-22 ...... 130 Table 107:Total revenue from sale of power at proposed tariff for FY 2021-22 ...... 130 Table 108: The revenue gap at proposed tariff for FY 2021-22 ...... 131 Table 109: Voltage wise Technical losses considered for FY 2021-22 ...... 134 Table 110: Classification of Categories on the basis of Voltage of power supply ...... 134 Table 111: Voltage wise Technical losses considered for the FY...... 135 Table 112: Apportionment of technical losses to voltage wise sale for FY 2021-22 ...... 135 Table 113: Apportionment of Commercial losses to voltage wise sale for FY 2021-22...... 135 Table 114: Allocation of power purchase cost to the energy sales for FY 2021-22 ...... 136 Table 115: Allocation of Network Cost for the FY 2021-22 ...... 136 Table 116: Voltage-wise Allocation of Network Cost ...... 137 Table 117: Cost of Supply at different Voltage Levels for FY 2021-22 ...... 137 Table 118: Application fee ...... 138 Table 119: Meter testing fee ...... 138 Table 120: Meter testing fee for own installation ...... 138 Table 121: Removal/ refixing/ change of meter fee ...... 140 Table 122: Reconnection charges ...... 140 Table 123: Supervision, labour and establishment charges for service connection ...... 140

South Bihar Power Distribution Company Limited

BEFORE THE BIHAR ELECTRICITY REGULATORY COMMISSION, PATNA

IN THE MATTER OF: Filing of the Petition for Truing up for FY 2019-20, Annual Performance Review (APR) for FY 2020-21 and Annual Revenue Requirement (ARR) for FY 2021- 22 under Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018 and its amendments thereof if any along with the other guidelines and directives issued by the BERC from time to time and under Section 45, 46, 47, 61, 62, 64 and 86 of The Electricity Act 2003 read with the relevant guidelines.

AND IN THE MATTER OF: South Bihar Power Distribution Company Limited (hereinafter referred to as "SBPDCL” or “Petitioner” which shall mean for the purpose of this petition the Licensee),having its registered office at Vidyut Bhawan, Bailey Road, Patna.

The Petitioner respectfully submits as under: -

1. The Petitioner was formerly integrated as a part of the Bihar State Electricity Board (hereinafter referred to as “BSEB” or “Board”) which was engaged in electricity generation, transmission, distribution and related activities in the State of Bihar.

2. The Board is now unbundled into five (5) successor companies – Bihar State Power (Holding) Company Limited, Bihar State Power Generating Company Limited (hereinafter referred to as “BSPGCL”), Bihar State Power Transmission Company Limited (hereinafter referred to as “BSPTCL”), North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited (hereinafter referred to as “DISCOMs”) as per Energy Department, Government of Bihar Notification no:

under The Bihar State Electricity Reforms Transfer Scheme 2012.

3. Pursuant to the enactment of the Electricity Act, 2003, every utility is required to submit its Aggregate Revenue Requirement (ARR) for the control period and Tariff Petitions as per procedures outlined in section 61, 62 and 64, of Electricity Act 2003, and the governing regulations thereof. 4. The Petition for True-up for FY 2018-19, Annual Performance Review (APR) for the FY 2019- 20 and Annual Revenue Requirement (ARR) for FY 2020-21 was filed by South Bihar Power Distribution Company Limited (SBPDCL) on 15.11.2019, and accordingly the Hon’ble Commission had issued the relevant tariff order on 20.03.2020. 5. The present petition is filed with the Hon’ble Commission for True up for FY 2019-20, Annual Performance Review (APR) of FY 2020-21, and estimating the Annual Revenue Requirement (ARR) for FY 2021-22.

South Bihar Power Distribution Company Limited

6. This Petition has been prepared in accordance with the provisions of Sections 61 and 62 of the Electricity Act, 2003 and has taken into consideration Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018 and amendments and orders issued by the Hon’ble Commission from time to time. 7. SBPDCL along with this petition is submitting the regulatory formats with data & information to an extent applicable and would make available any further information/ additional data required by the Hon’ble Commission during the course of proceedings.

Prayers to the Commission: The Petitioner respectfully prays that the Hon’ble Commission may: a. Admit this Petition and condone any delay in filing the petition; b. Examine the proposal submitted by the Petitioner in the enclosed petition for a favorable dispensation; c. Approve the Annual Revenue Requirement (ARR) for FY 2021-22 under relevant regulations considering and allowing appropriate deviations in matters sub-judice under various forums such as APTEL etc. and Orders issued by the Hon’ble Commission from time to time and pass suitable Orders with respect to the True up for FY 2019-20 and Annual Performance Review (APR) for FY 2020-21. d. Approve the proposed tariff schedule to be recovered from the different category of consumers, proposed open access charges and general & miscellaneous charges as proposed as to be made applicable from 1st April 2021. e. SBPDCL may also be permitted to propose suitable changes to the respective ARRs, prior to the final approval by the Hon’ble Commission. SBPDCL believes that such an approach would go a long way towards providing a fair treatment to all the stakeholders and may eliminate the need for a review or clarification. f. Condone any inadvertent omissions / errors / shortcomings and permit SBPDCL to add / change / modify / alter this filing and make further submissions as may be required at a future date. g. Pass such Order, as the Hon’ble Commission may deem fit and appropriate keeping in view the facts and circumstances of the case.

South Bihar Power Distribution Company Limited, Patna Petitioner Location: Patna Date: 30/12/2020

South Bihar Power Distribution Company Limited

1. Introduction

1.1. Background

1.1.1. Bihar State Electricity Board (“Board” or “BSEB”) originally constituted on 1st April 1958 under Section 5 of the Electricity (Suppl y) Act, 1948 and was engaged in the management of electricity generation, transmission, distribution and related activities in the State of Bihar.

1.1.2. Under the new 'Bihar State Electricity Reforms Transfer Scheme 2012', the BSEB has been unbundled into five companies: a. Bihar State Power (Holding) Company Limited (BSPHCL), b. Bihar State Power Transmission Company Limited (BSPTCL), c. Bihar State Power Generation Company Limited (BSPGCL), d. South Bihar Power Distribution Company Limited (SBPDCL), e. North Bihar Power Distribution Company (NBPDCL) with effect from 1st November’ 2012 vide notification no.

dated 30-10-2012.

a) “Bihar State Power (Holding) Company Limited” means the Company that will own shares of newly incorporated reorganized four companies i.e. Bihar State Power Generation Company Limited, Bihar State Power Transmission Company Limited, South Bihar Power Distribution Company Limited, and North Bihar Power Distribution Company Limited.

b) “Bihar State Power Generation Company Limited” means the Generating Company to which the Generating Undertakings of the Board are to be transferred in accordance with this Scheme.

c) “Bihar State Power Transmission Company Limited” means the Transmission Company to which the Transmission Undertakings of the Board are to be transferred in accordance with this Scheme.

d) “South Bihar Power Distribution Company Limited” And “North Bihar Power Distribution Company Limited”, collectively mean the Distribution Companies, to which the Distribution Undertakings of the Board are to be transferred in accordance with this Scheme.

1.1.3. This Petition is being submitted separately by “South Bihar Power Distribution Company Limited”.

South Bihar Power Distribution Company Limited 10

1.2. Profile of SBPDCL

1.2.1. SBPDCL is a company registered under the provisions of the Companies Act 1956 and is a fully owned subsidiary Company of BSPHCL.

1.2.2. SBPDCL is engaged primarily in the business of distribution and retail supply of electricity. It has been vested with the distribution assets, interest in property, rights and liabilities of the erstwhile BSEB necessary for the business of distribution in its area of distribution comprising of all 11 circles of South Bihar.

1.2.3. SBPDCL has been given the status of a Distribution Licensee as per Section 14 of the Electricity Act 2003, in order to fulfil the obligations of the Distribution Licensee as mandated under the provisions of the Bihar State Electricity Reforms Transfer Scheme 2012 and the Electricity Act, 2003.

1.2.4. The Bihar State Electricity Reforms Transfer Scheme, 2012 details out the following for the distribution business of SBPDCL: • Schedule-C, Part-I: Description of Assets, Liabilities etc.;

• Schedule-C, Part-II: Provisional Balance Sheet as on 1st November 2012;

• Schedule-C, Part-III: Function and Duties of SBPDCL.

1.2.5. SBPDCL has divided its area of supply into 11 Distribution Circles which further comprises of 47 divisions and 129 subdivisions.

1.2.6. The Petitioner has a total consumer base of 58 lakhs as on 31st March 2020.

1.2.7. The details of the existing distribution infrastructure of the Petitioner as on 31st March 2020 are tabulated below for reference:

Table 1: Existing distribution infrastructure of SBPDCL

S. No. Particulars Unit Quantity 1 No. of electrified villages No 18521 2 No. of consumers No 58 Lakhs 3 No. of 33/11 kV Substations No. 533 4 Capacity of 33/11 kV Substations MVA 8769.3 No. of 11/0.4 kV 3 phase Transformers No. 101974 5 Capacity of 11/0.4 kV 3 phase Transformers MVA 8822.195 6 Length of 33 kV line CKM 7101.79 7 Length of 11 kV line CKM 52742.1 8 Length of LT line CKM 128808.725

1.2.8. The two distribution companies were created based on reorientation of seven area offices. The reorientation was done based on regrouping of circles. As such from a circle level and below there is no change from the previous system.

Table 2: DISCOMs’ Areas and Circles

Area Circle PESU PESU East

South Bihar Power Distribution Company Limited 11

Area Circle PESU West Patna Patna Central Bhojpur (Ara) Nalanda Gaya Magadh Aurangabad Sasaram Bhagalpur Bhagalpur Jamui Munger Muzaffarpur Tirhut Chapra Motihari Darbhanga Mithila Samastipur Begusarai Saharsa Kosi Kishanganj Purnea

1.2.9. The four area offices i.e. PESU, Patna central, Magadh and Bhagalpur were regrouped to form one company, i.e. South Bihar Power Distribution Company Limited. Hence the circles – PESU (East), PESU (West), Patna, Ara, Nalanda, Gaya, Aurangabad, Sasaram, Bhagalpur, Jamui and Munger constitute the South Bihar Power Distribution Company Limited (SBPDCL). The remaining three area offices viz. Tirhut, Mithila and Kosi Areas were combined to form another company, i.e. North Bihar Power Distribution Company Limited (NBPDCL). Consequently Muzaffarpur, Chapra, Motihari, Darbhanga, Samastipur, Begusarai, Saharsa, Kishanganj and Purnea Circles are combined within the company North Bihar Power Distribution Company Limited.

1.3. Procedural History

1.3.1. The procedural history of the filings of petition of erstwhile BSEB, BSPHCL and individual companies is tabulated below for ready reference:

Table 3: Procedural History of Filing

S. No. Scope of Filing in Petition Filing Date Order Date Remarks

1 ARR & Tariff Petition for FY 10.04.2006 29.11.2006 - 2006-07 2 ARR & Tariff Petition for FY 18.12.2007 - Delayed filing & hence 2007-08 directed to file petition for FY 2008-09 by 31.01.2008 3 ARR & Tariff Petition for FY 14.02.2008 26.08.2008 Review of FY 2006-07 was 2008-09 also undertaken in this order 4 ARR & Tariff Petition for FY 09.10.2009 - Delayed filing & hence 2009-10 directed to file petition for FY 2010-11. 5 ARR & Tariff Petition for FY 03.02.2010 06.12.2010 Review of FY 2008-09 was 2010-11 also undertaken in this order

South Bihar Power Distribution Company Limited 12

S. No. Scope of Filing in Petition Filing Date Order Date Remarks

6 ARR & Tariff Petition for FY 17.02.2011 01.06.2011 Order effective from 1.5.2011 2011-12 7 True-up Petition for FY 2006- 01.09.2011 04.01.2012 - 07, FY 2007-08 and FY 2008-09

Addendum to this petition 17.10.2011 8 True-up Petition for FY 2009- 13.10.2011 27.01.2012 - 10 9 Review of ARR for FY 2010- 13.10.2011 - Commission directed to file 11 based on provisional petition for review along with accounts petition of FY 2012-13

Submission of Audited 02.03.2012 Accounts for FY 2010-11

Submission of True-up petition for FY 2010-11 based on Audited Accounts 16.03.2012 10 ARR & Tariff Petition for FY 15.11.2011 30.03.2012 Order included True-up of FY 2012-13 2010-11 & Review of FY 2011-12 Supplementary petition for 02.01.2012 FY 2012-13 11 Business Plan for Control 20.09.2012 15.03.2013 Commission directed to Period FY 2013-14 to FY submit revise business plan. 2015-16 filed by BSPGCL, BSPTCL and 2 DISCOMs

Revised Business Plan as Commission again directed to per Commissions directive 14.11.2012 submit revised business plan vide letter dated 21.12.2012 Re-Revised Business Plan Approved along with MYT for BSPGCL & BSPTCL 03.01.2013 Order

Re-Revised Business Plan for 2 DISCOMs 04.01.2013 12 Provisional True-up for 15.11.2012 15.03.2013 Commission issued MYT FY2011-12, Review petition order according to petition for FY 2012-13 and MYT Petition for FY 2013-14 to FY 2015-16 for BSPGCL, BSPTCL and 2 DISCOMs

Revised petition for True-up 24.12.2012 of FY 2011-12 based on Audited Accounts 13 True up for FY 2012-13 by - 28.02.2014 Commission issued Tariff BSPHCL order according to petition

Annual Performance Review for FY 2013-14 and Revised Annual Revenue Requirement for FY 2014-15 for BSPGCL, BSPTCL and 2 DISCOMs 14 True up for FY 2013-14, - 16.03.2015 Commission issued Tariff Annual Performance Review order according to petition for FY 2014-15 and Annual

South Bihar Power Distribution Company Limited 13

S. No. Scope of Filing in Petition Filing Date Order Date Remarks

Revenue Requirement for FY 2015-16 for NBPDCL and SBPDCL 15 True-up for FY 2014-15, 15.11.2015 21.03.2016 Commission issued Tariff Annual Performance Review order according to petition, (APR) for the FY 2015-16 but disallowed various claims. Annual Revenue Requirement (ARR) for the control period FY 2016-17 to FY 2018-19 16 True-up for FY 2015-16, 06.12.2016 24.03.2017 Commission issued Tariff Annual Performance Review order according to petition, (APR) for the FY 2016-17 but disallowed various claims. Annual Revenue Requirement (ARR) for FY 2017-18 17 True-up for FY 2016-17, 05.12.2017 21.03.2018 Commission issued Tariff Annual Performance Review order according to petition, (APR) for the FY 2017-18 but disallowed various claims. Annual Revenue Requirement (ARR) for FY 2018-19 18 Business Plan for Control 05.11.2018 Commission issued Tariff Period FY 2019-20 to FY order according to petition, 2021-22 filed Bihar but disallowed various claims DISCOMs

True-up for FY 2017-18, 25.02.2019 Annual Performance Review 30.11.2018 (APR) for the FY 2018-19 Annual Revenue Requirement (ARR) for FY 2019-20, 2020-21 and 2021- 22 19 True-up for FY 2018-19, 15.11.2019 20.03.2020 Commission issued Tariff Annual Performance Review order according to petition, (APR) for the FY 2019-20 but disallowed various claims. Annual Revenue Requirement (ARR) for FY 2020-21

1.4. Judgement of Hon’ble Supreme Court vide Appeal no 239-240 of 2019 dated 4th Feb 2019

1.4.1. The Hon’ble Supreme Court in its Order dated 4th Feb 2019 passed an Order directing the Hon’ble Appellate Tribunal for rectification of Order dated 25th Oct 2018.

1.5. Judgment of Hon’ble APTEL on Appeal No. 141 and Appeal No. 142 of 2016

1.5.1. Hon’ble BERC had issued Tariff Order dated 21.03.2016 in response to Petitions filed by the DISCOMs with regard to True-up of FY 2014-15, the APR for FY 2015-16, and the ARR for the control period FY 2016-17 to FY 2018-19. In the said Tariff Order Hon’ble Commission had disallowed claims of SBPDCL and NBPDCL in the matter of power Purchase Cost, Depreciation, Return on equity, Sales, Prior Period Expenses etc.

South Bihar Power Distribution Company Limited 14

Aggrieved by the disallowance made by the Hon’ble Commission in the Tariff Orders dated 21.03.2016 Appeal No. 141 of 2016 and Appeal No. 142 of 2016 were filed by the SBPDCL and NBPDCL respectively before Hon’ble Appellate Tribunal for Electricity (APTEL).

1.5.2. Subsequently, the Hon’ble APTEL decided the matter vide Judgment dated 25th November, 2016. Brief of the major observations made by the Hon’ble APTEL are as follows:

Table 4: Highlights of the Hon’ble APTEL Judgment dated 25.11.2016

Parameter Observations of the Hon’ble APTEL Power Purchase In respect of this Issue, we direct the State Commission to re-examine to the extent to Cost which the power purchase cost is to be allowed on the quantum of power purchase allowed with reference to all the bills from the generators and other sources of power procurement and if the State Commission finds any specific quantum of power purchase claim is not supported by such bills may seek specific documents from the Appellant in this regard. The State Commission should also treat the power purchase rate of SBPDCL for FY 2014-15 as per audited accounts as there is eventually no adverse impact on the consumers Depreciation and In our opinion, the depreciation is an important segment and needs to be re-examined Gross Value of by the State Commission keeping in view the relevant details submitted by the Appellant Assets subject to its prudent check. The Appellant is entitled to raise the issue of rate of depreciation also before the State Commission while the depreciation amount is being re-examined by the State Commission. Return on Equity The matter for consideration is only whether the amount contributed by the State Government towards equity capital should be considered equity or not. To be fair to the Appellant, the State Commission is directed to re-examine whether the contribution of the State Government towards equity capital should be considered as equity or not and accordingly pass an appropriate order. Net Prior Period The State Commission is hereby directed to look into this issue based on the details (Credit/Charges) claimed by the Appellant to have been furnished and even the audited accounts of the Appellant. Energy Sales Our observation on this issue is limited to the point that the progress on the part of the Appellant in implementing these schemes in the remaining part of the current financial year could be kept under close watch and if considerable progress is achieved by the Appellant in the ensuing period, the State Commission can reconsider the projections and consumers mix etc. afresh for FY 2017-18 onwards. Recovery of We have observed that in the Impugned Order, the State Commission had deferred the Gap/Surplus of the carrying cost. past period We observe that the surplus of the past period pertaining to the erstwhile BSEB and also the issue regarding disallowance of carrying cost need to be reviewed by the State Commission. Employee Cost In light of the fact that the details of both these employees cost and A&G expenses for and A&G FY 2015-16 are now available as stated by the Appellant, the State Commission may Expenditures look into the employee cost and A&G expenses for the FY 2015-16 and subsequently employee cost and A&G expenses for FY 2015-16 should be considered a base year for estimating the same for the FY 2016-17 onwards. Since the matter is being remanded to the State Commission, the Appellant is given the liberty to raise the above aspect in the remand proceedings with satisfactory details for consideration in regard to Employees Cost and A&G expenses. Distribution Losses We have also noted that the reasoning of the State Commission to the effect that a non- Trajectory achievement of loss level as per the trajectory already decided by the State Commission is on account of the inefficiencies of the Appellant and the consumers should not be burdened for such inefficiencies.

We do not wish to interfere with the impugned findings of this State Commission in its Order since the State Commission is in a better position to ascertain the efficiency of

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Parameter Observations of the Hon’ble APTEL the Appellant. However, since the matter is being remanded to the State Commission for various issues as brought out above, we would like to state only that the State Commission should have to relook and decide only to the extent that such numbers should not become unachievable but not on account of the inefficiencies of the Appellant, if the State Commission observes so.

1.6. Appeal no 225/2019

1.6.1. The Petitioner has filed an appeal to the Hon’ble Tribunal to set aside the Order dated 25th Feb, 2019 passed by the Hon’ble Commission.

1.6.2. The appeal is related to the power purchase cost for FY 2017-18, adjustment of transmission loss at a lower rate, method of calculation of RPO, changing in methodology of calculation of Interest on working capital retrospectively for FY 2017-18, calculation of net depreciation without considering grants etc.

1.6.3. This is in subjudiced with the Hon’ble Appellate Tribunal.

1.7. Appeal no 293 and 294 of 2019

1.7.1. The Petitioner had filed this appeal before the Hon’ble Appellate Tribunal for rectification of Order dated 19th Dec 2018 and review Order dated 19th Dec, 2018 by the Hon’ble Commission by the Tribunal.

1.8. Appeal no 278 of 2019

1.8.1. The Petitioner had filed this appeal before the Hon’ble Appellate Tribunal for rectification of Order dated 25th Oct 2018 passed by the Tribunal. This is as per the directions given by the Hon’ble Supreme Court in appeal no 239-240 of 2019. This matter is solely related to the treatment of Surplus of the past years pertaining to erstwhile BSEB. The matter is subjudiced till date

1.9. Appeal no 154 of 2017

1.9.1. The Petitioner has filed an appeal to the Hon’ble Tribunal to set aside the Order dated 24th March, 2017 passed by the Hon’ble Commission.

1.9.2. The appeal is related to the treatment of Surplus by the Hon’ble Commission, disallowance of prior period charges, disallowance of late payment surcharge, disallowance of expenses etc.

1.10. Review Petition and APTEL Appeal against Tariff Order dated 20th March 2020

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1.10.1. The Petitioner has filed a review petition to the Hon’ble Commission vide letter no. 135 dated 09.09.2020 to review some of the Hon’ble Commission’s decisions in the tariff order dated 20th March 2020.

1.10.2. The appeal is related to the Abolition of Unmetered consumers in the KJ and DS-I category, Introduction of penal charges for use of load beyond contracted demand on the pro-rata additional energy consumption in addition to levy of additional demand charge, Recovery of full fixed charges linked to maintaining supply of power as per scheduled supply hours and other clerical errors in the tariff order. The matter is sub judice till date.

1.10.3. Further, the Petitioner has also challenged few issues related to the tariff order dated 20th March 2020 before the Hon’ble Tribunal vide DFR No. 384/2020 dated 02.11.2020.

1.11. Instant Petition

1.11.1. Section 62 of the Electricity Act, 2003 requires the Distribution Licensee to furnish details as may be specified by the SERC for determination of tariff. In addition, as per the regulations issued by the Hon’ble Commission, BSEB or its unbundled companies are required to file petition for all reasonable expenses which they believe they would incur over the next financial year and seek the approval of the Hon’ble Commission for the same in advance. The filing is to be done based on the projections of expected costs and revenue.

1.11.2. The current petition has been prepared in accordance with the provisions of the following Acts/ Policies/ Regulations:

a) The Electricity Act, 2003; b) The National Electricity Policy; c) The National Tariff Policy, and amendments issued therein; d) Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018 along with the other guidelines and directives issued by the BERC from time to time e) BERC (Terms and Conditions for Open Access) Regulations, 2005 along with the other guidelines and directives issued by the BERC from time to time 1.11.3. The Petitioner has made genuine efforts for compiling all relevant information relating to the True-up, APR, and ARR petition as required by the regulations issued by the Hon’ble Commission and has also made every effort to ensure that the information provided to the Hon’ble Commission is accurate and free from material errors. However, there may be certain deficiencies owing to the limited operations of Distribution Company on independent basis. The Petitioner therefore prays to the Hon’ble Commission that the information

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provided be accepted for the current filing and at the same time assures that it is taking appropriate measures to improve its management information system for improved data collection.

1.11.4. Further, the Petitioner vide letter dated 12th November 2020 had sought an extension till 31st December 2020 for filing the tariff petition for true-up of FY 2019-20, APR of FY 2020- 21 and ARR of FY 2021-22.

1.12. Contents of the Petition

1.12.1. This petition comprises of following sections:

• True up for FY 2019-20 • Annual Performance Review for FY 2020-21 • Annual Revenue Requirement for FY 2021-22 • Revenue Gap and Tariff Proposal for FY 2021-22 • Miscellaneous and General Charges • Voltage Wise Cost of Supply • Proposed tariff Schedule for FY 2021-22 • Wheeling and Open access charges

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2. Overall approach for present filing

2.1. Present Approach

2.1.1. The Petitioner requests the Hon’ble Commission to determine the ARR for FY 2021-22. It further requests the Hon’ble Commission to determine norms for the Petitioner for this period based on the learnings and its independent operations till FY 2019-20.

2.1.2. In line with the above, the Petitioner is filing its True-Up petition for FY 2019-20, Annual Performance Review petition for FY 2020-21 and Annual Revenue Requirement petition for FY 2021-22 for the consideration of the Hon’ble Commission.

2.1.3. The Petitioner requests the Hon’ble Commission to kindly approve the True-Up, APR and ARR, keeping in view the actual segregated figures now available for the entire year in the audited books of accounts for FY 2019-20.

2.2. Data and information sources for estimating the Aggregate Revenue Requirement

2.2.1. In this Petition, the true up is based on the audited accounts for FY 2019-20. The APR for FY 2020-21 is based on actual figures for the first 6 months (as available) for power purchase and sales of the financial year. Appropriate pro-rata projections and escalations have been taken over the previous year, keeping in mind guiding principles defined by the Hon’ble Commission. The ARR for FY 2021-22 is based on projections and escalations over the previous year, keeping in mind the historical trends and key initiatives planned for the future, in line with the guidelines provided by the Hon’ble Commission for determining the same.

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3. True-up Summary for FY 2019-20

3.1. Preamble

3.1.1. This section outlines the performance of the Petitioner for FY 2019-20.

3.1.2. In line with the provisions of the BERC (Multi Year Distribution Tariff) Regulations, 2018, the Petitioner hereby submits the True Up petition for FY 2019-20. The expenses of the Petitioner for FY 2019-20 presented for true-up are based on the audited books of accounts, and other principles adopted by the Hon’ble Commission for estimating normative Employee expenses, A&G expenses, R&M expenses, interest on term loan, Return on Equity, interest on working capital loan and depreciation. The ARR so arrived has been compared with that approved by the Hon’ble Commission vide its Tariff Order dated 25th February 2019. Accordingly, the revised Aggregate Revenue Requirement, revenue and gap for FY 2019-20 have been given in the subsequent sub-sections of this chapter.

3.2. Number of Consumers, Connected Load and Sales Number of Consumers 3.2.1. The actual no. of consumers at the end of FY 2019-20 against the no of consumers revised approved in the Tariff Order dated 25th February 2019 is provided in the table below.

Table 5: Number of Consumers as on 31st March 2020

Approved Category by Commission for Actual for FY 2019-20 FY 2019-20 (ARR)

Kutir Jyoti 1907531 1483858 Domestic-I 2465895 2274063 Domestic-II 1534918 1317764 Domestic – III - 104 Non-Domestic-I 65899 94531 Non-Domestic-II 328391 311494 Street Light-I 1018 752 Street Light-II 384 624 IAS-I 148883 231154 IAS-II 4145 3634 Public Water Works 3896 2626 Har Ghar Nal 13000 3223 LTIS-I 80652 59574 LTIS-II 6888 4452 HTS-I 1915 1792 HTS-II 127 119

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Approved Category by Commission for Actual for FY 2019-20 FY 2019-20 (ARR)

HTS-III 8 4 HTSS 13 14 Railway 15 1 Total 6563577 5789783

3.2.2. The above comparison of consumer numbers in Table 5 clearly brings out the fact that the increase in number of consumers has although not as planned by the petitioner, however, there has still been a significant addition in number of consumers during the year and the actual number of consumers is in fact higher by almost 7% over the previous year. Increase can be observed in certain major categories like NDS-I (50%), IAS (19%), DS-I (11%) and LTIS-I (10%) over the previous year.

Connected Load 3.2.3. The actual connected load at the end of FY 2019-20 against the connected load approved in the Tariff Order dated 25th February 2019 is provided below:

Table 6: Total connected load (in kW)

Approved in Actual for FY Category ARR FY 2019-20 2019-20 KJ 190753 188,886 DS-I 2501492 2,335,509 DS-II 4377318 3,715,007 DS-III - 163 NDS-I 73031 116,050 NDS-II 1205922 1,016,815 SS-I 12331 5,350 SS-II 4137 13,651 IAS-I 367578 466,356 IAS-II 55348 35,157 PWW 72950 38,878 HGN 29081 9,071 LTIS-I 715883 488,746 LTIS-II 381897 233,233 HTS-I 397952 333,635 HTS-II 231994 205,944 HTS-III 169101 46,350

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Approved in Actual for FY Category ARR FY 2019-20 2019-20 HTSS 119345 11,5179 RT 170200 9000 Total 11076313 9,372,980

Sales 3.2.4. The category wise actual sales (MUs) at the end of FY 2019-20 against the sales approved in the Tariff Order dated 25th February 2019 is provided below:

Table 7: Total Energy Sales (in MU) for FY 2019-20

Approved in Actual for FY Category ARR (FY 2019- 2019-20 20) KJ 1145 1,159.78 DS-I 3379 2,973.50 DS-II 3933 3,008.40 DS-III - 0.04 NDS-I 59 243.26 NDS-II 1300 846.36 SS-I 16 12.37 SS-II 26 59.19 IAS-I 435 735.80 IAS-II 142 78.79 PWW 180 79.37 HGN 63 15.05 LTIS-I 612 295.82 LTIS-II 431 131.23 HTS-I 736 679.72 HTS-II 426 425.71 HTS-III 215 171.72 HTSS 790 808.81 RTS 579 102.03 SLDC Deviation 58.21 Sale to other state 152.82 Total 14467 12037.96

3.2.5. The Commission is hereby prayed to consider the sales of 12037.96 MU for SBPDCL.

3.3. AT&C Loss

3.3.1. The Hon’ble Commission in its MYT Order dated 25th February 2019 had set AT&C target loss for 15% for FY 20 to FY 22 based on agreed losses under UDAY which was applicable till FY 20. At the time of signing of UDAY agreement dated 22nd February 2016, nor Sahaj

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Bijli Har Ghar Yojana (Saubhagya) was envisaged nor a force majeure event like COVID 19 was foreseen in near future.

3.3.2. The Petitioner mentions that it had been able to bring down the AT&C losses by 14.36% in a span of 3 years (FY 2016-17 to FY 2018-19). This has been made possible through a multitude of initiatives on improving the network performance as well as on the services side to enhance billing and collection efficiency. However, due to the impact of COVID-19 in the last quarter of FY 2019-20, the AT&C loss has seen a significant increase in FY 2019-20.

3.3.3. Further, since, most of the consumers connected to the network of the Petitioner are LT consumers, therefore, the LT network length is significantly higher for the Petitioner as compared to the HT network length. SBPDCL serves ~58 lakh consumers of which ~88% belong to the domestic category.

3.3.4. The impact of the extended LT networks, especially in rural areas, directly leads to increase in losses on the low voltage network. Despite continuous multiple efforts, with the addition of such large number of consumers over the past two years, has led to a decreasing HT:LT network ratio, Therefore the accelerated loss reduction plan that had been put to action has now slowed down.

3.3.5. It is further pertinent to mention that while finalizing the AT&C loss level targets under UDAY, all DISCOMs had been assigned the universal target of 15%, irrespective of their consumer mix and HT to LT ratio, which plays a key contributing factor in a DISCOMs ability to recover revenues and for ensuring low distribution losses. It is also paramount to point out that although the consumer mix has a direct impact on the AT&C losses of the DISCOM, and the DISCOM has no control on this factor.

3.3.6. The Petitioner further submits that it has submitted a revised roadmap to Ministry of Power, Govt. of India in regard to reduction in AT&C from FY 2020-21 onwards in the state considering the actual as-is situation in the state.

Distribution Loss

3.3.7. The Hon’ble Commission has approved the distribution loss of 15% in its MYT Order for FY 2019-20 to FY 2021-22 dated 25th February 2019 for FY 2019-20 and APR Order dated 20th March 2020 for FY 2019-20 in line with the Distribution loss trajectory under UDAY scheme. However, it is important to bring into the kind notice of the Hon’ble Commission that the actual distribution losses for the Petitioner is higher than the loss trajectory approved by the Hon’ble Commission.

3.3.8. The following table captures the distribution loss for FY 2019-20:

Table 8: Distribution Losses (in %)

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Approved in MYT Order Approved in APR FY Actual for FY As per Particulars dated 25.02.2019 2019-20 2019-20 UDAY MoU Distribution Loss 15% 15% 27.89% 15%

3.3.9. It may kindly be noted that the Hon’ble Commission in the BERC MYT (Distribution) Regulations, 2018 has provided the methodology for treatment of Distribution losses. Based on the circle wise losses, the Petitioner has arrived at the Distribution loss of 27.89% for FY 2019-20.

3.3.10. The difference in the loss target and the actual loss levels is practically impossible to achieve in the given period, and therefore this shall add on to the burden of the DISCOM. The Hon’ble Commission is also requested to see the growth rates in consumer base of SBPDCL and consider the challenging operating scenario of the Petitioner wherein most consumers being added are in rural and remote areas further adding to network losses, ongoing measures, and regulatory precedents to approve the actual distribution loss for FY 2019-20. Therefore, the Hon’ble Commission is kindly requested to consider the actual distribution loss of 27.89%.

Collection Efficiency

3.3.11. Based on the circle wise collection efficiency, the Petitioner has reached the below collection efficiency in FY 2019-20:

Table 9: Collection Efficiency (in %)

Approved in ARR Actual for FY Particulars of FY 2019-20 2019-20 Collection Efficiency 100% 79.24%

3.3.12. The Hon’ble Commission had approved the collection efficiency of 100% in the ARR for FY 2019-20 as per the UDAY scheme. However, due to the imposition of Lockdown at the end of the last quarter in FY 2019-20, the revenue collection from government debtors was hugely impacted for the petitioner thereby, the collection efficiency Therefore, the Hon’ble Commission is kindly requested to consider the actual collection efficiency of 79.24% for FY 2019-20.

Calculation of AT&C Loss 3.3.13. Based on the above figures, the Petitioner has calculated the following AT&C loss for the year FY 2019-20:

Table 10: AT&C loss (in %)

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Approved in ARR Actual for FY Particulars of FY 2019-20 2019-20 AT&C Loss 15% 42.86%

3.3.14. The Hon’ble Commission is therefore requested to approve the AT&C loss of 42.86% for FY 2019-20.

3.4. Transmission losses

3.4.1. Intra-State Transmission Loss: It is submitted that the Petitioner has taken the State transmission loss as per actuals i.e. 631.99 MUs from the audited accounts for FY 2019-20 and accordingly requests the Hon’ble Commission to approve the same.

3.4.2. Inter-State Transmission Loss: It is submitted that the Petitioner has taken the Central Transmission loss as per actuals i.e. 415.55 MUs from the audited accounts for FY 2019- 20 and accordingly requests the Hon’ble Commission to approve the same.

3.5. Power Purchase

3.5.1. Bihar has historically been a State with limited natural resources which has led to an underdeveloped power generation sector in the State. As a result, the State Power Distribution Companies rely heavily on allocation from central generating stations and other outside State projects for procuring power for sale to consumers within the State. This dependence as a consequence creates a significant amount of uncertainty in terms of reliability and also significantly pushes up the power purchase costs (due to the fact that sometimes the power allocation is made from inefficient plants in addition to the higher interstate transmission charges and losses).

3.5.2. Power is procured by the power management cell of BSP(H)CL, and this is allocated between the two DISCOMs, NBPDCL and SBPDCL, in the proportion as determined by the board resolution based on the demand growth requirement and consequent power supply requirement.

3.5.3. Long term power purchase: The power purchase for existing sources has primarily been NTPC, NHPC and the same has been considered based on the actual quantum with adjustments to capture overall power purchase cost in a reasonable manner. Other sources of power include power procured from State Generating companies (RE and Non-RE Sources) and IPPs.

3.5.4. Medium / Short Term power purchase: The power purchase from these sources are namely IEX, DEEP Portal etc., and these have been adequately considered as per the actual power purchase data provided.

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3.5.5. Renewable Power Purchase Obligation: It is submitted that the Hon’ble Commission has notified the BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 and BERC (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010. Further Hon’ble Commission initiated a Suo-Motu proceedings no. 42/2016 dated 24.11.2016 to bring in 2nd amendment in the BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 dated 29.03.2017 to incorporate the various new/amended provisions specified in the revised Tariff Policy,2016 notified by the Ministry of Power Govt. of India vide gazette notification dated 28.01.2016 The Commission has also come up with its 3rd amendment in due course BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 and amended Clause 4 as follows:

"Provided that on achievement of Solar RPO compliance to the extent of 85 % and above in any year, remaining shortfall, if any, may be met by purchase of excess non-solar energy beyond the percentage specified for Non-Solar RPO for that particular year.

Provided further that on achievement of Non-Solar RPO compliance to the extent of 85 % and above in any year, remaining shortfall, if any, may be met by purchase of excess solar energy beyond the percentage specified for solar RPO for that particular year".

Table 11: Renewable Purchase Obligation (%)

From Renewable FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Sources RPO (%) 6.50% 7.75% 9.25% 11.50% 14.25% 17.00% Solar (%) 1.50% 2.25% 3.25% 4.75% 6.75% 8.00% Non-Solar (%) 5.00% 5.50% 6.00% 6.75% 7.50% 9.00%

3.5.6. In line with the above, the details of the Renewable Energy based power procured during FY 2019-20, has been given in the table below which also includes Deposit for RPO to be made for any shortfall as per the Regulation and amendments issued therein:

Table 12: RPO met for FY 2019-20

Particular units FY 2019-20 Energy Sale (excluding interstate sales) MU 11885.14 Hydro Power Purchase (B) MU 1337.60 Inter-State Transmission Loss in % (C) % 2.88% Inter-State Transmission Loss in % (D=B*C) MU 38.48 Intra-State Transmission Loss in % (E) % 3.66% Intra-State Transmission Loss (F=E*(B-D)) MU 47.55 Distribution Loss (%) (G) % 27.89% Distribution Loss (H=G*(B-D-F)) MU 349.10

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Particular units FY 2019-20 Hydro Power Consumed (I=B-D-F-H) MU 902.47 Conventional Power Consumed (J=A-I) MU 10982.67 RPO Targets (%) % 11.50% Solar % (K) % 4.75% Non-Solar % (L) % 6.75% RPO Targets MU 1263.01 Solar (J*K) MU 521.68 Non-Solar (J*L) MU 741.33 Renewable Power Purchase 701.79 Solar MU 114.58 Non-Solar MU 587.21 Captive Consumption Solar MU 17.89 BREDA Off-grid solar MU 5.09 BREDA GCRT solar 0.39 SBPDCL DDG Standalone MU 2.27 SBPDCL DDG Mini grid MU 2.89 SBPDCL IPDS 0.57 SBPDCL Net/Gross Meter Consumer 4.91 SPV Plant Solar Generation 1.76 Captive Consumption Non Solar BERDA MU 92.29 REC Purchase MU 316.22 Solar MU 196.95 Non Solar MU 119.27 Total Solar RPO Compliance MU 329.42 Total Non Solar RPO Compliance MU 798.76 RPO Shortfall MU 134.83 Solar Shortfall MU 192.26 Non-Solar Shortfall MU -57.43

3.5.7. In line with the Hon’ble Commission’s order in petition no. 12/2020 dated 17th June 2020, the petitioner is carrying forward the shortfall in RPO in FY 2019-20 to FY 2020-21. The Hon’ble Commission is therefore requested to carry forward the shortfall of 134.83 MU (Solar shortfall of 192.26 MU and Non-Solar surplus of 57.43 MU) to be fulfilled in FY 2020- 21.

3.6. Actual Power Purchase quantum

3.6.1. The details of actual power purchased from various sources in FY 2019-20 is as follows:-

Table 13: Actual Power Purchased (MU) in FY 2019-20

Share Units purchased Name of The Source allocated (MW) (MU) Central Generating Stations 2,389.90 12,526.90 FSTPP I &II 271.28 1,593.84

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Share Units purchased Name of The Source allocated (MW) (MU) FSTPP III 58.10 340.18 KHSTPP I 189.87 1,256.07 KHSTPP II 40.34 306.75 Barh Stage II 646.77 3,954.06 Nabinagar (BRBCL) Unit I - III 40.50 280.42 Korba 13.50 42.22 Talcher Stage I 222.73 1,308.14 KBUNL Stage II 157.89 900.12 NPGCL Unit I 302.11 1,185.68 Darlipali STPS Unit I 51.24 21.86 Chuka 43.20 292.73 Rangit 11.34 67.16 Tala 139.05 418.62 Teesta 58.55 322.86 Mangdechu 143.35 236.22

State Generating Stations 207.52 397.29 BSPHC 29.32 15.96 KBUNL Stage I 118.80 298.95 BTPS Stage I Unit I 59.40 82.38

IPPs 263.52 1,916.59 GMR 140.40 962.84 JITPL 123.12 953.75

Renewables 378.33 683.67 M/s SunmarkEnergy Projects Limited 5.40 8.49 (Formerly MBCEL) M/s Response renewable Energy Ltd, 5.40 8.48 Kolkata. M/s Avantika Contractors Ltd., Hyderabad 2.70 3.69 M/s Glatt Solutions Pvt. Ltd, Kolkata. 1.62 2.65 Alfa Infraprop Pvt. Ltd. 10.80 16.85 Udipta Energy & Equipment Pvt. Ltd. 2.70 3.60 Azure Power India Pvt. Ltd. 5.40 6.45 Welspun Renewables Project - I 5.40 8.50 Welspun Renewables Project – II 8.10 12.42 Welspun Renewables Project – III 8.10 12.72 Acme Cleantech Project (Nalanda) 8.10 12.14 Acme Cleantech Project (Magadh) 5.40 8.53 Solar Energy Corporation of India Ltd., 5.40 10.06 Government of India Wind ISTS Scheme Tranche I (PTC) 108.00 222.26 (Greeen Infra, Inox, Mytrah & Ostro) Wind ISTS Scheme Tranche II (SECI) 54.00 158.02 (Orange) SECI Green Infra 54.00 61.64 Betam 27.11 18.43 New Swadeshi Sugar Mill, Narkataganj 5.40 8.19

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Share Units purchased Name of The Source allocated (MW) (MU) Hasanpur Sugar Mill, Dalsinghsarai 7.83 10.16 Bharat Sugar Mills, Sidhwalia, Gopalganj 8.10 21.79 Hari Nagar Sugar Mills, Hari Nagar, West 7.83 29.47 Champaran HPCL Biofuels Ltd., Sugauli, East 10.80 7.48 Champaran HPCL Biofuels Ltd., Lauria, West 10.80 9.90 Champaran Riga Sugar Company Ltd. 1.62 1.12 Siddhashram Rice Mill Cluster Pvt ltd 0,54 1.35 Bihar Distillers & Bottlers Pvt ltd 5.08 9.48 Tirupati Sugar 3.24 9.79 PTC 5 Wind - 0.01

Others - 2,158.50 PTC(IEX) - 1,551.80 PTC Short Term - 386.68 TATA Energy Trading Ltd. - 97.05 Manikaran - 25.41 NEA - 60.04 UI - (147.83) DB Power - 26.81 PTC JITPL - 105.12 PTC SKS Power - 52.12 UPPCL - 1.31 Total 3,299.10 17682.96

3.6.2. The Petitioner further submits that it has duly followed the BERC (Power Purchase and Procurement Process of Licensee) Regulations, 2018 for fulfilling its power requirement during the FY 2019-20. Accordingly, the Hon’ble Commission is requested to approve the power purchase quantum for the Petitioner on actual basis as provided above.

3.7. Energy Balance

3.7.1. The Petitioner has calculated the energy balance based on the actual sales, distribution losses and the power availability during FY 2019-20. The details are as provided in the following table:

Table 14: Energy balance (MU) in FY 2019-20 Approved by Commission Actual (FY Sr No Particulars Unit for FY 2019-20 2019-20) (ARR) A Energy Requirement 1 Energy sales MU 14240.66 12037.96 2 Less: Inter-state sales MU 0 152.82

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Approved by Commission Actual (FY Sr No Particulars Unit for FY 2019-20 2019-20) (ARR) 3 Energy sales excluding Inter-state sales MU 14240.66 11885.14 4 Distribution Loss % 15% 27.89% 5 Add: Distribution Loss MU 2513.06 4597.46 6 Total energy required at Distribution periphery MU 16753.72 16482.60 7 Add: Inter-state sales MU 0 152.82 8 Total energy required at Distribution periphery MU 16753.72 16635.42 9 State Transmission Loss % 3.92% 3.66% 10 Add: State Transmission Loss MU 683.54 631.99 11 Total energy required at State Transmission Periphery MU 17437.26 17267.41

B Energy Available 1 From Central Sector MU 16728.08 12526.90 2 From IPP MU 1916.59 3 From State Generating Stations MU 397.29 1087.24 4 From Renewable Sources MU 683.68 5 UI (Net) MU -147.83 6 Others(please specify) MU 2306.33 7 CTU losses % 2.26% 2.88% 8 CTU Losses MU 378.05 415.55 9 Net power available at State periphery (1+2+3+4+5+6-8) MU 17437.26 17267.41 Energy Surplus/(Deficit) at State Periphery MU 0 0.00

3.7.2. As stated above the DISCOM has computed the distribution loss for FY 2019-20, as per the methodology approved by the Hon’ble Commission. Two different approach for computing the loss would result in different figures and a case may arise where one approach would show targeted level of loss has been achieved and the other approach would show non- achievement of target. In order avoid such differences, the Hon’ble Commission is requested to approve the methodology of computing distribution loss for FY 2019-20 and onwards as proposed in this petition by the DISCOM .The Petitioner requests the Hon’ble Commission to approve the energy balance based on actual calculations for FY 2019-20.

3.8. Power Purchase Cost

3.8.1. The power purchase cost mainly comprises of fixed and energy charges for two part tariff PPAs which are essentially with NTPC, NHPC, GMR Kamalanga, Sugar mills, biomass, bagasse and only energy charges in case of single part tariff based PPAs, which are typically for BSHPC, Solar and short term power purchase etc. The Petitioner has presented the actual expenditure incurred on power purchase based on bills raised by the various power sellers. This actual amount has been considered and captured accordingly as a break up of two part tariff, wherever applicable, as per the audited accounts of the Petitioner. The Petitioner has also included REC Cost of INR 70.34 crores. The Petitioner therefore

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humbly requests the Hon’ble Commission to allow the actual power purchase cost under this true-up process.

3.8.2. The Petitioner also likes to highlight that, in the FY 2019-20, the Petitioner has suffered an underdrawal of 147.83 MU which has resulted into a DSM charge of Rs. 25.05 Crore. The Petitioner also submits that the schedule and drawal of power from the grid is a factor of sale to consumers which further impacts the demand of the Petitioner and hence becomes uncontrollable in nature for the Petitioner. Further, the DSM settlement mechanism regulation issued by the CERC provides commercial settlement of deviations and seeks for maintaining grid frequency. However, maintaining zero deviation in schedule and drawal by any entity is an ideal scenario which is practically a huge challenge for any entity. The Petitioner thus requests the Hon’ble Commission to pass on the complete unit and cost pertaining to UI in the trued-up ARR of FY 2019-20.

3.8.3. In line with the above, the Petitioner presents its power purchase cost for FY 2019-20 based on audited annual accounts, for the kind consideration of the Hon’ble Commission.

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Table 15: Actual Power Purchased (MU) in FY 2019-20 Name of The Source Share Units Fixed charge Energy cost Miscellaneous Total Cost Average allocated purchased (Rs Crs) (Rs Crs) cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs./kWh) Central Generating Stations 2,389.80 12,526.90 2,102.78 2,952.49 23.96 5,079.22 4.05 FSTPP I &II 271.28 1,593.84 156.69 406.09 13.82 576.60 3.62 FSTPP III 58.10 340.15 59.71 85.45 (0.23) 144.93 4.26 KHSTPP I 189.87 1,256.07 136.56 276.05 (0.30) 412.31 3.28 KHSTPP II 40.34 306.75 31.25 64.03 (0.15) 95.13 3.10 Barh Stage II 646.77 3,954.06 851.92 977.87 (3.28) 1,826.51 4.62 Nabinagar (BRBCL) Unit I - III 40.50 280.42 68.96 65.58 (0.40) 134.15 4.78 Korba 13.50 42.22 5.94 5.59 0.33 11.86 2.81 Talcher Stage I 222.73 1,308.14 132.14 265.53 4.68 402.35 3.08 KBUNL Stage II 157.89 900.12 294.98 245.61 3.88 544.48 6.05 NPGCL Unit I 302.11 1,185.68 313.00 248.28 0.12 561.40 4.73 Darlipali STPS Unit I 51.24 21.86 4.89 2.60 0.08 7.58 3.47 Darlipali STPS Unit II ------Chuka 43.20 292.73 - 70.57 - 70.57 2.41 Rangit 11.34 67.16 13.12 12.64 0.45 26.20 3.90 Tala 139.05 418.62 - 90.27 - 90.27 2.16 Teesta 58.55 322.86 39.09 37.55 4.96 81.60 2.53 Mangdechu 143.35 236.22 - 98.76 4.18 98.76 4.18 Capacity Charge Refund by NTPC - - (5.49) - - (5.49)

- State Generating Stations 207.52 397.29 126.73 124.56 21.27 272.56 6.86 BSPHC 29.32 15.96 - 3.97 - 3.97 2.49 KBUNL Stage I 118.80 298.95 87.14 97.63 0.10 184.87 6.18 BTPS Stage I Unit I 59.40 82.38 39.59 22.95 21.17 83.71 10.16 - IPPs 263.52 1,916.59 466.52 218.79 60.80 746.11 3.89 GMR 140.40 962.84 181.57 114.50 79.57 375.64 3.90 JITPL 123.12 953.75 284.95 104.28 (18.77) 370.47 3.88 - Renewables 378.86 683.68 - 287.45 70.68 358.13 5.24

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Name of The Source Share Units Fixed charge Energy cost Miscellaneous Total Cost Average allocated purchased (Rs Crs) (Rs Crs) cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs./kWh) M/s Sunmark Energy Projects Limited 5.40 8.49 - 4.82 - 4.82 5.67 (Formerly MBCEL) M/s Response renewable Energy Ltd, 5.40 8.48 - 4.81 - 4.81 5.67 Kolkata. M/s Avantika Contractors Ltd., Hyderabad 2.70 3.69 - 2.84 - 2.84 7.69 M/s Glatt Solutions Pvt. Ltd, Kolkata. 1.62 2.65 - 1.50 - 1.50 5.67 Alfa Infraprop Pvt. Ltd. 10.80 16.85 - 13.26 - 13.26 7.87 Udipta Energy & Equipment Pvt. Ltd. 2.70 3.60 - 2.88 - 2.88 7.98 Azure Power India Pvt. Ltd. 5.40 6.45 - 5.41 - 5.41 8.39 Welspun Renewables Project - I 5.40 8.50 - 7.39 - 7.39 8.70 Welspun Renewables Project – II 8.10 12.42 - 10.73 - 10.73 8.64 Welspun Renewables Project – III 8.10 12.72 - 10.89 - 10.89 8.56 Acme Cleantech Project (Nalanda) 8.10 12.14 - 10.60 - 10.60 8.73 Acme Cleantech Project (Magadh) 5.40 8.53 - 7.45 - 7.45 8.73 Solar Energy Corporation of India Ltd., 5.40 10.06 - 5.53 0.34 5.88 5.84 Government of India Wind ISTS Scheme Tranche I (PTC) 108.00 222.26 - 78.46 - 78.46 3.53 (Greeen Infra, Mytrah & Ostro) Wind ISTS Scheme Tranche II (SECI) 54.00 158.02 - 42.82 - 42.82 2.71 (Orange) SECI Green Infra 54.00 61.64 - 11.71 - 11.71 1.90 Betam 27.11 18.43 - 4.64 - 4.64 2.52 New Swadeshi Sugar Mill, Narkataganj 5.40 8.19 - 4.13 - 4.13 5.05 Hasanpur Sugar Mill, Dalsinghsarai 7.83 10.16 - 6.31 - 6.31 6.22 Bharat Sugar Mills, Sidhwalia, Gopalganj 8.10 21.79 - 10.94 - 10.94 5.02 Hari Nagar Sugar Mills, Hari Nagar, West 7.83 29.47 - 16.59 - 16.59 5.63 Champaran HPCL Biofuels Ltd., Sugauli, East 10.80 7.48 - 4.21 - 4.21 5.63 Champaran HPCL Biofuels Ltd., Lauria, West 10.80 9.90 - 5.57 - 5.57 5.63 Champaran Riga Sugar Company Ltd. 1.62 1.12 - 0.70 - 0.70 6.25 Siddhashram Rice Mill Cluster Pvt ltd 0.54 1.35 - 1.00 - 1.00 7.40 Bihar Distillers & Bottlers Pvt ltd 5.08 9.48 - 6.04 - 6.04 6.37 Tirupati Sugar 3.24 9.79 - 6.21 - 6.21 6.34

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Name of The Source Share Units Fixed charge Energy cost Miscellaneous Total Cost Average allocated purchased (Rs Crs) (Rs Crs) cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs./kWh) PTC 5 Wind - 0.01 - 0.00 - 0.00 3.53 - Others 59.40 2,158.50 - 1,110.76 8.50 1,119.27 5.19 PTC(IEX) - 1,551.80 - 666.49 - 666.49 4.29 PTC Short Term - 386.68 - 236.38 - 236.38 6.11 TATA Energy Trading Ltd. - 97.05 - 52.20 - 52.20 5.38 Manikaran - 25.41 - 12.27 - 12.27 4.83 NEA - 60.04 - 37.10 - 37.10 6.18 UI - (147.83) - 25.05 - 25.05 (1.69) DB Power - 26.81 - 16.38 - 16.38 6.11 PTC JITPL 37.13 105.12 - 43.57 4.85 48.42 4.61 PTC SKS Power 22.28 52.12 - 20.36 3.65 24.01 4.61 UPPCL - 1.31 - 0.96 - 0.96 7.30 - Transmission and Other Charges - - 1,318.64 - - 1,318.64 SLDC - - 2.13 - - 2.13 BGCL - - 115.35 - - 115.35 BSPTCL - - 548.97 - - 548.97 POSOCO - - 5.96 - - 5.96 PGCIL ULDC CHG ------PGCIL - - 645.36 - - 645.36 Open Access Charges - - 0.86 - - 0.86 - REC Purchase - - - - 70.34 70.34

Prior Period Expense - - - - 87.15 87.15 Rebate for Prompt Payment - - - - (39.08) (39.08) Total 3,299.10 17682.96 4014.67 4,694.04 233.28 8941.99 5.06

3.8.4. The actual power purchase cost as per accounts is INR 8910.70 Crores including the prior period expenses of Rs. 87.15 Crores. In the above Table, the Petitioner has also included REC Cost of INR 70.34 Crores and the Transmission Charges of INR 1318.64 Crores (excluding prior

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period expenses) along with the rebate availed by the Petitioner on account of prompt payment to generators and transmission companies. Accordingly, the Petitioner requests the Hon’ble Commission to approve an amount of INR 8,941.99 Crores for the FY 2019-20 based on actuals.

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3.9. Transmission charges

3.9.1. Interstate Transmission charges

3.9.1.1. It is submitted that the Petitioner has to pay transmission charges to POWERGRID for use of transmission facilities enabling power drawl from the Eastern region. The transmission charges payable to POWERGRID are computed based on new transmission pricing mechanism and the figures for computation for FY 2019-20 and based on actual bills.

3.9.1.2. Further, the Petitioner also incurs POSOCO charges and Open Access charges.

3.9.1.3. The summary of expenses towards POWERGRID, POSOCO and ERLDC charges for FY 2019-20 based on actual audited accounts is given in the table below:

Table 16: PGCIL, POSCO, ERLDC and Open Access charges

Source Total (in INR Crore) PGCIL POSOCO / ERLDC Charges and Open Access 658.15 Charges

3.9.2. Intrastate Transmission charges

3.9.2.1. The charges payable to State Transmission Utility i.e. BSPTCL, BGCL, SLDC based on actuals for FY 2019-20 is shown below.

Table 17: State transmission charges

Source Total (in INR Crore) BSPTCL, BGCL & SLDC Charges 666.45

3.9.2.2. Given the above information, the Hon’ble Commission is therefore requested to approve the total transmission charges of INR 1,325.46 Crore (inclusive of prior period charges) in true up for FY 2019-20.

3.10. Disallowance of power purchase due to excess Distribution loss

3.10.1. In FY 2019-20, the Petitioner has added around 7% consumers to the consumer base of FY 2018-19 with mostly increase in LT category. Due to addition in the number of consumers it is imperative that more effort is required to control the losses due to the existing consumers and also to ensure that the loss due to addition of the new consumers should also not exceed the existing level. Even in such a situation, the Petitioner was able to reduce the actual distribution loss level to 27.89%.

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3.10.2. The present trajectory of Distribution Losses as per the UDAY scheme aims at 15% losses in FY 2019-20 which is less than the actual losses of 27.89% of the utility. Also, in light of this fact, it is pertinent to note that the state of Bihar and SBPDCL have signed a tripartite Memorandum of Understanding (MoU) of Ujjwal DISCOM. Assurance Yojana with the Ministry of Power, Government of India on 22nd February 2016. Under UDAY scheme the DISCOMs have targeted to reduce the AT&C losses and bring it to the level of 15% by FY 2019-20.

3.10.3. In compliance to the Hon’ble Commission’s directive to increase supply hours, the Petitioner has increased the hours of supply in both rural and urban areas. Currently, the utility is providing more than 18-20 hours per day to its rural consumers and around 20-24 hours per day to its urban consumers. The Petitioner is continuously doing efforts to reduce the loss levels by introducing spot billing, various payment channels etc.

3.10.4. In view of the efforts made by the utility to reduce the losses with increased supply hours and growth in domestic consumers, the Commission is hereby requested to adopt the actual distribution loss of 27.89% for FY 2019-20 for calculation of disallowance of power purchase cost due to excess distribution loss.

3.10.5. The Petitioner further submits that, in previous years, the methodology adopted by the Hon’ble Commission for arriving at surplus is based on very idealistic situation where it is assumed that entire energy purchased less normative loss in a year is billed to consumers in that particular year and difference of the two is termed as surplus energy on account of higher loss than approved one. This assumption is against the pragmatic scenario where some portion of the difference so arrived (energy purchased minus normative loss minus energy billed to consumers) is absorbed in network and some portion are consumed by the consumers to be billed in subsequent year.

3.10.6. Further, the energy rate considered by the State Commission to regulate the power purchase cost against the disallowed power purchase quantum has been arrived at by dividing total power purchase cost from a source by summation of total quantum of energy purchased during various time blocks of the year from that source. Those sources whose energy rates so arrived which are higher have been identified for disallowance. This implies that the State Commission instead of comparing energy rates of different sources in same time block has wrongly compared annual average rate of energy of different sources. This approach is not only against the MoD principle which states for comparison of variable charges of different sources in same time block but practically non implementable as such assumption ignores the variation in price and demand of power in different time blocks of a day.

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3.10.7. As a matter of fact, depending on power demand and availability scenario, the rate discovered through bidding process for any period may be significantly lower or higher e.g. in peak periods power is costlier than off peak period. This can be further substantiated by the fact that the purchase price of energy purchased during 2019-20 from open market i.e IEX/PXIL varied from Rs 0.60/kWh to more than Rs. 9.29/kWh during different period depending upon market condition. This important aspect has been ignored by the State Commission while disallowing the power purchase cost from Open Market and short-term sources. It is therefore requested from the Hon’ble Commission to revisit the methodology to regulate power purchase quantum and cost for future purposes.

3.10.8. It is further to be noted that the DISCOM has received an amount of Rs. 510 Crore as OFR funding infused by GoB in terms of equity contribution towards meeting its shortfall in achieving the AT&C loss target. The Petitioner has considered such amount as income while arriving at the Revenue Gap for calculation of Annual Revenue Requirement for FY 2019-20.

Table 18: Gains/(Loss) on account of truing up of Power Purchase Expenses for FY 2019-20 (Rs. Crore)

Actual @15% DL Sr No Particulars Unit FY 2019- FY 2019-20 20 A Energy Requirement 1 Energy sales MU 12,038 12,038 2 Less: Inter-state sales MU 153 153 3 Energy sales excluding Inter-state sales MU 11,885 11,885 4 Distribution Loss % 27.89% 15.00% 5 Add: Distribution Loss MU 4,597 2,097 Total energy required at Distribution 6 MU 16,483 13,983 periphery 7 Add: Inter-state sales MU 153 153 Total energy required at Distribution 8 MU 16,635 14,135 periphery Additional Energy Required MU 2,500 Additional PP Cost @APPC Rs. Cr 1260

3.10.9. In view of the above, the Petitioner is hereby submitting the summary of the Gain/(Loss)on account of controllable and uncontrollable factors of power purchase in the table below:

Table 19: Gains/(Loss) on account of controllable and uncontrollable factors for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss) due Gain/(Loss) the MYT Claimed in to controllable due to Order Truing up factors uncontrollable factors Purchase of power 6745.25 7,546.17 (800.92) (1,259.83) 458.91

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Particulars Approved in Actual Deviation Gain/(Loss) due Gain/(Loss) the MYT Claimed in to controllable due to Order Truing up factors uncontrollable factors PGCIL & Other (164.65) (164.65) 494.36 659.01 transmission charges BSPTCL & BGCL (10.87) (10.87) transmission charges 655.58 666.45 and SLDC charges RE Purchase 58.26 70.49 (12.08) (12.23) Total 7953.45 8941.97 (988.52) (1259.83) 271.32

3.10.10. The Petitioner hereby submits that the Hon’ble Commission is requested to consider the above calculation for allowing gains and losses in truing up the power purchase of FY 2019- 20.

3.11. Capital Investment Plan, Capitalization and Funding

3.11.1. During the year, Petitioner has capitalized INR 2234.92 Crores of which INR 1787.93 Crore pertains to CWIP and INR 446.98 Crore is towards new investment in FY 2019-20. As depicted in the table below, INR 1187.88 Crore pertains to grants. These grants were received under various schemes. Apart from grants, fixed assets are funded through loans and equities too. The funding through loans amounts to INR. 638.43 Crore and through equity it is INR 408.61 Crore.

3.11.2. The table given below depicts the audited balance of Capital Works in Progress (CWIP), Gross Fixed Assets (GFA) and Grants etc. for FY 2019-20

Table 20: CWIP, Capex, Capitalization and Funding (in INR Crore)

S. Approved in ARR FY Actual for FY 2019- Particulars No. 2019-20 20 1 Opening CWIP 1775.24 4334.09 2 New Investment 2967.62 2806.77 3 Less: Capitalization (4+5) 3794.09 2234.92 4 CWIP 1787.93 5 New Investment 446.98 6 Closing CWIP (1+2-3) 948.77 4905.95 7 Funding 8 CWIP Capitalization (9+10+11) 1787.93 9 Grant 1652.46 950.31 10 Equity 1358.92 326.89 11 Loan 782.71 510.74 12 New Investment (13+14+15) 446.98 13 Grant 237.58

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S. Approved in ARR FY Actual for FY 2019- Particulars No. 2019-20 20 14 Equity 81.72 15 Loan 127.69 16 Total Capitalization (8+12) 2234.92 17 Total Grant (9+13) 1187.88 18 Total Equity (10+14) 408.61 19 Total Loan (11+15) 638.43

3.11.3. The Hon’ble Commission is therefore requested to approve the actual capitalization plan for FY 2019-20.

3.12. Gross Fixed Assets

3.12.1. The Petitioner hereby submits the computation of Gross Fixed Assets considering the opening GFA as per Audited Annual Accounts.

3.12.2. The details of the opening and closing GFA for FY 2019-20 have been provided in the table below:

Table 21: Gross Fixed Assets (in INR Crore)

Approved in ARR Actual for FY Particulars FY 2019-20 2019-20 Opening GFA 12456.17 8427.73 Additions during the year 3794.09 2232.48 Add : IDC Add: Employee cost

capitalized Closing GFA 16250.26 10660.22

3.12.3. The Petitioner requests the Hon’ble Commission to approve closing Gross Fixed assets as INR 10660.22 Crore as per the audited accounts for FY 2019-20.

3.13. Depreciation

3.13.1. As per regulation 23 of Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018, the Petitioner is claiming the depreciation expense after deducting the value of grant, depreciation on land and consumer contribution amortized in the ratio of depreciation

3.13.2. Depreciation is an important cost component for any Distribution Licensee. The Petitioner in the below table submits the depreciation for FY 2019-20 on the various assets within GFA.

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Table 22:Depreciation (in INR Crore)

Approved in Actual for FY S. No. Particulars ARR FY 2019-20 2019-20 1 Opening GFA 9843.43 8427.73 2 Less: Value of land 1541.93 Net opening GFA (1- 3 6885.81 2) Additions during the 4 year (excl. value of 2914.66 2229.85 land) 5 IDC 6 Expenses capitalized Closing GFA 7 12758.09 9115.66 (3+4+5+6) 8 Average GFA (3+7)/2 11300.76 8000.73 Weighted average 9 4.07% 5.58% rate of depreciation Depreciation for the 10 459.94 446.17 year 11 Opening Grants 4674.86 3181.98 12 Grants during the year 1652.46 1186.49 13 Total Grants (11+12) 6327.32 4368.47 Average Grants 14 5501.09 3775.24 (11+13)/2 Weighted average 15 4.07% 6.21% rate of Depreciation Depreciation for 16 GFA on Grants 223.89 234.41 (14*15) Depreciation for 17 GFA on Loans (10- 236.05 211.77 16)

3.13.3. The depreciation expense incurred by the Petitioner in FY 2019-20 amounts to INR 446.17 Crore of which INR 234.41 Crore pertains to amortization of grants in the ratio of depreciation. The Petitioner is claiming depreciation by reducing the value of grants and consumer contribution amortized in FY 2019-20.

3.13.4. The Petitioner requests the Hon’ble Commission to approve depreciation as per the actuals i.e. INR 211.77 Crore for FY 2019-20.

Table 23: Gains/(Loss) on account of Depreciation for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors Depreciation 236.05 211.77 24.28 24.28

3.14. Other finance charges

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3.14.1. Other finance charges include power factor rebate, interest to suppliers, bank charges etc. The below table captures the various head wise other finance charges as incurred for FY 2019-20: -

Table 24: Other Finance charges (in INR Crore)

Approved in Actual for FY S. No. Particulars ARR FY 2019-20 2019-20 Discount to consumers for 1 timely payment of Bills 52.43 (Rebate) 2 Power Factor Rebate 3 Other Bank Charges 5.22 Other finance charges as 4 per base year 5 Escalation percentage Add: increase in finance 6 charges 7 Other finance charges 49.1 57.66

3.14.2. The Petitioner requests the Hon’ble Commission to approve INR 57.66 Crore towards Other Finance charges for FY 2019-20.

Table 25: Gains/(Loss) on account of due to other finance charges for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors Other Finance 49.1 57.66 (8.56) 0 (8.56) Charges

3.14.3. The Petitioner has categorised the Gain/(Losses) due to other finance charges as uncontrollable factor because of the nature of its components such as rebate to consumers, power factor rebate, interest to suppliers/contractors, etc.

3.15. Operation & Maintenance charges

3.15.1.1. Regulation 22 BERC (Multi Year Distribution Tariff) Regulations 2018 states that:

(a) The Commission shall stipulate a separate trajectory of norms for each of the components of O&M expenses viz., Employee cost, Repair and Maintenance (R&M) expense and Administrative and General (A&G) expense. Provided that such norms may be specified for a specific Distribution Licensee or a class of Distribution Licensees.

(b) Norms shall be defined in terms of combination of number of personnel per 1000 consumers and number of personnel per substation along with annual expenses per

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personnel for Employee expenses; combination of A&G expense per personnel and A&G expense per 1000 consumers for A&G expenses and R&M expense as percentage of gross fixed assets for estimation of R&M expenses.

(c) One-time expenses such as expense due to change in accounting policy and arrears paid due to pay commission recommendation shall be excluded from the norms in the trajectory.

(d) The unforeseen expenses beyond the control of the Distribution Licensee such as pay revision, shall be excluded from the norms in the trajectory.

(e) The One-time expenses and the expenses beyond the control of the Distribution Licensee shall be allowed by the Commission over and above normative Operation & Maintenance Expenses after prudence check.

(f) The norms in the trajectory shall be specified over the control period with due consideration to productivity improvements.

(g) The norms shall be determined at constant prices of base year and escalation on account of inflation shall be over and above the baseline.

(h) The Distribution Licensee specific trajectory of norms shall be identified by the Commission on the basis of absolute and relative analysis.

(i) In absolute analysis, Distribution Licensee’s audited accounts of operations for last three years, expenses claimed for control period, historically approved cost, and prudence check shall be used by the Commission to estimate values of norms. In relative analysis, performance parameters of other Distribution Licensees within the same state or in other states, shall be considered by the Commission to estimate norms. Provided that other Distribution Licensees so chosen shall have similar profile as that of the Distribution Licensee under consideration in terms of consumer mix, type of license area (city, state, etc.) type of distribution networks, viz., underground/ overhead, High Tension (HT) consumer, Low Tension (LT) consumer ratio, etc. Suitable average of outcomes of absolute and relative analysis shall be taken by the Commission to fix the norms over the control period for the Distribution Licensee.

3.15.2. Employee Expenses:

3.15.2.1. The Commission, in terms of Regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined Employee for the MYT control period of FY 2019-20 to

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FY 2021-22 in the Tariff Order dated 20.02.2019. Accordingly, the employee cost computed for 2019-20 is shown in the table below:

Table 26: Employee expenses (in INR Crore)

FY 2019-20 Sr.No Particulars Actual Approved in ARR Base Value 2019-20 1 Average annual CPI index 4.28% 5.34% Norms-Number of personnel per 1000 2 0.278 0.2667 0.2667 consumers Norms-Number of personal per 3 20.312 19.4782 19.4782 substation 4 No. of consumers (1000) 6564 5790 5 No of substations 410.48 525 Annual expenses per personnel (Rs. 6 0.0455 0.043614 0.0461 Cr) 7 Employee cost per 1000 consumers 83.02 71.21 8 Employee cost per substation 379.20 471.61 9 Total Employee cost 462.22 542.82

3.15.2.2. The Hon’ble Commission is therefore requested to approve the employee expenses for FY 2019-20.

Table 27: Gains/(Loss) on account of due to Employee expenses for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors Employee 462.22 542.82 (80.60) (80.60) expense

3.15.2.3. The Petitioner has divided the loss and gain due to employee expense. The Hon’ble commission is therefore requested to approve the same.

3.15.3. Repairs and maintenance:

3.15.3.1. Regulation 22.2 of BERC (Multi Year Distribution Tariff) Regulations 2018, specify R&M expenses as percentage (as per the norm determined) of Gross Fixed Assets excluding land cost for the year.

3.15.3.2. The Commission had determined the R&M norm i.e. ‘K’ factor at 1.66% for NBPDCL and 2.16% for SBPDCL for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 25.02.2019. The detailed computation of R&M expenses for the FY 2019-20 is shown below:

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FY 2019-20 (In Rs. Crore) Sr.No Particulars Approved in ARR Actual

1 Opening GFA 8427.73 2 Opening Land Cost 1541.93 3 Opening GFA exc land cost 9843.43 6,885.81 4 K Factor 2.16% 2.16% 5 R&M Expense 212.62 148.73

Table 28: Gains/(Loss) on account of due to R&M expenses for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors R&M 212.62 148.73 63.89 63.89 expense

3.15.3.3. The Hon’ble Commission is requested to accordingly approve the R&M expense as well as the Gain/(Loss)for the DISCOM in FY 2019-20 on account of R&M expenses.

3.15.4. Administrative & General expenses:

3.15.4.1. The Commission, in terms of regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined Employee and A&G norm for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 20.02.2019.

3.15.4.2. Accordingly, the A&G computed for 2019-20 (True-up), is shown in the table below:

Table 29: A&G expenses (in INR Crore)

FY 2019-20 Sr.No Particulars Approved in ARR Base Actual value 1 Average annual WPI CPI index 2.70% 2.95% 2 Norms-A&G expenses per 1000 consumers 1.778 1.778 1.778 3 No. of consumers (1000) 6564 5790 4 No of employees 11648 11970 5 Annual expenses per 1000 consumers (Rs. Cr) 0.0037 0.00356 0.01063 6 Annual expenses per employee (Rs. Cr) 0.0097 0.00942 0.00628 7 A&G cost per 1000 consumers 24.01 61.52 8 A&G cost per employee 112.69 75.19 9 Total A&G cost 136.70 136.70

Table 30: Gains/(Loss) on account of due to A&G expenses for FY 2019-20 (Rs. Crore)

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Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors A&G expense 136.7 136.70 - - -

3.15.4.3. The Hon’ble Commission is therefore requested to approve the A&G expenses as well as the Gain/(Loss)on account of A&G expense for FY 2019-20.

3.15.5. Allocation of holding cost:

3.15.5.1. The allocation of the Holding company expenses for FY 2019-20 as per the provisions of the Transfer Scheme 2012, and based on the actual audited accounts has been tabulated below:

Table 31: Holding cost (in INR Crore)

Approved Particulars in APR FY Actual for 2019-20 FY 2019-20

Holding company expenses 10.75 22.73

Table 32: Gains/(Loss) on account of due to Holding company expenses for FY 2019-20 (Rs. Crore)

Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors Holding company 10.75 22.73 (11.98) (11.98) expense

3.15.5.2. It is requested that the Hon’ble Commission approve the above holding expenses of INR 22.73 Crore as a part of O&M expenses and an uncontrollable loss of Rs. 11.98 crore for the Petitioner in FY 2019-20.

3.15.5.3. Gist of O&M expenses: The following table captures the total O&M expenses incurred by Petitioner in the FY 2019-20:-

Table 33: O&M expenses (in INR Crore)

Approved in Actual for FY 2019- Particulars APR FY 2019- 20 20 Employee cost 462.22 542.82 R&M expenses 212.62 148.73 A&G Expenses 136.7 136.70 Holding company 10.75 22.73 expenses

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Approved in Actual for FY 2019- Particulars APR FY 2019- 20 20 Total O& M cost 822.29 850.98

3.16. Interest on working capital

3.16.1. The Hon’ble Commission had issued BERC (Multi Year Distribution Tariff) Regulations, 2018 with Regulation 26 with the provision to calculate the Interest on Working Capital for the DISCOMs:

“The Distribution Licensee shall be allowed interest on estimated level of working capital for the financial year, computed as follows: a) Two months equivalent of expected revenue b) Maintenance spares@40% of R&M expenses for one month: Less: (i) Power purchase cost, transmission charges and load dispatch charges of one month (ii) Depreciation, return on equity and contribution to contingency reserves equivalent to two months (iii) Security deposits from consumers, if any Provided that the interest on working capital shall be on normative basis and rate of interest shall be equal to the State Bank one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as of the date on which petition for determination of tariff is filed plus 150 basis points. The rate of interest for the purpose of Truing-up shall be the weighted average MCLR of the concern Financial Year plus 150 basis points. Provided further that interest shall be allowed on consumer security deposits and security deposits from Distribution System users held during the year at the Bank Rate as of the date on which petition for determination is filed. The interest allowed shall be subject to true up at weighted average Bank Rate of the concern Financial Year. Provided also that if the State Government is providing resource gap grant and/or direct subsidy to consumers, the working capital shall be reduced by two months equivalent of that amount.” 3.16.2. The Petitioner would like to submit that it has arrived at the working capital requirement according to the applicable norms for Distribution function as provided in the BERC (Multi Year Distribution Tariff) Regulations, 2018, the calculation for which has been captured in the following table:

Table 34: Interest on working capital (in INR Crore) Approved in ARR Sr. No Particulars FY 2019-20 (Actuals) FY 2019-20 1 Two months equivalent expected revenue 1621.67 1,497.56

Maintenance spares @40% of R&M expenses 2 7.09 4.96 for one month

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Approved in ARR Sr. No Particulars FY 2019-20 (Actuals) FY 2019-20 3 Sub-total (1+2) 1628.76 1,502.52

4 Less:

Power purchase cost, transmission charges and (i) 662.79 745.16 load dispatch charges of one month Depreciation, return on equity and contribution (ii) 126.92 72.03 to contingency reserve to two months

(iii) Amount of security deposits from consumers 702.46 567.03 5 Sub-total (4(i)+4(ii)+4(iii)) 1492.17 1,384.23

6 Net working capital requirement (3-5) 136.59 118.30

7 Rate of interest % 10.00% 9.65% 8 Interest on working capital (6*7) 13.66 11.42

3.16.3. The Petitioner would like to submit that, for calculating the maintenance spares, 40% of R&M expense for one month to arrive at an amount of INR 4.96 Crore. Two months equivalent revenue requirement deducted by non-tariff income has been considered for calculation of gross working capital of INR 1,502.52 crore.

3.16.4. The Gross working capital requirement is then reduced by closing Security deposits from consumers in FY 2018-19 and Depreciation amounting to INR 567.03 Crore and INR 72.03 Crore respectively. The power purchase cost inclusive of transmission charges is there by reduced by one month amounting to INR 745.16 Crore.

3.16.5. An interest rate @ 8.15% at weighted average MCLR + plus 150 basis points for FY 2019- 20.

3.16.6. Therefore, the Hon’ble Commission is requested to kindly approve the interest on working capital loan i.e. INR 30.01 Crore for FY 2019-20.

Table 35: Gains/(Loss) on account of due to Interest on working capital (in INR Crore) Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors IoWC 13.66 11.42 2.24 2.24

3.16.7. The Petitioner submits that the Working capital of the petitioner is dependent on factors such as two months receivables of the petitioner, one month power purchase cost including the transmission charges of the petitioner, the security deposit held by the petitioner during

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the year etc. These parameters are incontrollable in nature for the petitioner as they are completely dependent on the sales and number of consumers of the petitioner. It further includes a part of the R&M expense as well as a part of the petitioner’s depreciation and RoE. Further, the interest rate applicable to calculate the interest on working capital is the weighted average SBI MCLR +150 basis points which is also uncontrollable in nature for the petitioner. In view of this, the Petitioner has considered the interest on working capital as an uncontrollable parameter for the Petitioner and has accordingly treated the gains/losses on its account,

3.16.8. The Hon’ble Commission is further requested to kindly approve sharing of gains and losses for interest on working capital loan for FY 2019-20.

3.17. Return on Equity

3.17.1. As per regulation 27 of the BERC MYT regulations 2018, Return on Equity shall be calculated as follows: -

(a) “Return on equity shall be computed on 30% of the capital base or actual equity, whichever is lower: Provided that assets funded by consumer contribution, capital subsidies/ grants and corresponding depreciation shall not form part of the capital base. Actual equity invested in the Distribution Licensee as per book value shall be considered as perpetual and shall be used for computation in this Regulation: (b) The return on the equity invested shall be allowed from the date of start of commercial operation: (c) The project which will be commissioned w.e.f. 01.04.2016 will be allowed RoE of 15.5% and if project is completed in schedule period 0.5% incentives in form of RoE will be allowed.”

3.17.2. It is to be noted that the actual equity infused in the company is greater than the norm of 30% of capital base. Hence, in line with the above cited regulation, the return on equity is calculated on 30% of the capital base only.

Table 36: Return on equity (in INR Crore)

Approved in Claimed in S. No. Particulars ARR FY 2019- True Up for FY 20 2019-20 1 Closing equity to end of 31.03.2016 638.06 638.06 2 Rate of return on equity % 14.00% 14% 3 Return on Equity 113.87 89.33 Equity with effect from 1st April

2016 4 Opening equity 1484.24 688.81 5 Equity Addition during the year 642.49 314.11 6 Closing Equity 2126.73 1002.92 7 Average Equity 1805.49 845.87 8 Rate of return on equity with effect 19.76% 15.5%

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Approved in Claimed in S. No. Particulars ARR FY 2019- True Up for FY 20 2019-20 from 1.4.2016 9 Return on Equity 356.72 131.11 10 Total Return on Equity 470.59 220.44

3.17.3. In view of the above, the Petitioner requests the Hon’ble Commission to approve INR 220.44 Crore towards Return on Equity.

Table 37: Gains/(Loss) on account of due to RoE (in INR Crore) Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors RoE 470.59 220.44 250.15 250.15

3.17.4. The Hon’ble Commission is further requested to kindly approve sharing of gains and losses for RoE for FY 2019-20.

3.18. Interest on Loans

3.18.1. Interest on loans includes loans against schemes, central and state government loans, Bank Overdrafts, public bonds etc.

3.18.2. For computing the interest rate on the normative debt, the weighted average rate of actual loan portfolio is calculated as 10.06%. The table provided below captures the calculation of weighted average rate of interest for FY 2019-2

Table 38: Interest on Loans Claimed for FY 2019-20 (in INR Crore)

Addition Repayment Opening Rate of Closing Amount of Particulars during during the Balance Interest balance interest paid the year year REC (RGGVY) Term 144.95 10.33% - 8.07 136.88 14.88 Loan REC (R-APDRP) Term 349.26 10.40% - - 349.26 36.42 Loan PFC (R-APDRP) Term 213.59 9.00% 46.52 - 260.11 20.01 Loan REC (IPDS) Term Loan 100.00 10.19% - 100.00 10.47 REC (DDUGJY) Term 200.02 10.19% 400.00 600.02 33.52 Loan State Govt.-Non-Plan 43.69 10.50% 14.89 58.58 6.32 Loan BSPHCL (ADB) Loan 6.06 10.50% 0.22 - 6.28 1.65 Total 1057.57 461.63 8.07 1511.13 123.27 Average Loan during the 1284.35 year Weighted average rate of 10.06% Interest

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3.18.3. The Petitioner has considered INR 211.77 Crore claimed under depreciation as normative repayment for the period. The below table captures interest expense against loans as incurred for FY 2019-20

Table 39: Interest on Loans Claimed for FY 2019-20 (in INR Crore)

Approved for FY Claimed in True Up Calculation for Interest on Loan 2019-20 (ARR) for FY 2019-20 Opening loan balance 3817.35 1,978.99 Additions during the year 1499.14 732.92 Normative Repayment 236.05 211.77 Closing Loans (1+2-3) 5080.44 2,500.15 Average Loans {(1+4)/2} 4448.90 2,239.57 Interest rate 10.05% 10.06% Interest Charges ( 5*6 ) 447.11 225.23

3.18.4. The Petitioner therefore requests the Hon’ble Commission to approve Interest on loan of INR 225.23 Crore for FY 2019-20.

Table 40: Gains/(Loss) on account of due to Interest on Loan (in INR Crore) Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors IoL 447.11 225.23 221.88 221.88

3.18.5. The Interest on loan is calculated based on the interest rate as decided by the RBI which is an uncontrollable parameter for the petitioner. The Hon’ble Commission is further requested to kindly approve sharing of gains and losses for Interest on Loan for FY 2019-20.

3.19. Interest on Consumer Security Deposit

3.19.1. Section 47(1) (a) of the Electricity Act, 2003 specifies that any person who requires a supply of electricity, should provide a reasonable amount of security deposit in respect of the electricity supplied to such person. BERC Supply Code Regulations 2007 specifies that the distribution licensee shall pay interest at the RBI Bank rate, applicable on security deposits taken from the consumers. The interest amount of previous financial year shall be adjusted in the energy bill issued in May/June of each financial year depending on billing cycle.

3.19.2. The BERC (Multi Year Distribution Tariff) Regulations 2018, Regulation 26 (iii) specifies that “Provided further that interest shall be allowed on consumer security deposit and security deposits from Distribution system users at the Bank Rate as of the date on which the petition for determination of tariff is accepted by the Commission”.

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3.19.3. The Petitioner would like to submit that as per the regulation, interest on consumer’s security deposit is being passed on to the consumers. A summary of the same has been represented below.

Table 41: Interest on Consumer Security Deposit (in INR Crore)

Approved in ARR FY Actual for FY 2019-20 Particulars 2019-20 Opening Security Deposit 607.72 Opening balance of interest payable 189.15 to consumers Interest payable during FY 2019-20 35.87 Addition / (Deletion) during the year 94.74 225.02 Closing Security Deposit 702.46 Closing balance of interest payable 209.31 to consumers Average Security Deposit (1+3)/2 655.09 RBI Bank Rate 6.50% Interest on Security Deposit paid 42.58 15.71 during the year

3.19.4. The Hon’ble Commission is therefore requested to approve INR 15.71 Crore towards interest on consumer security deposits, as per the audited accounts for FY 2019-20.

Table 42: Gains/(Loss) on account of due to Interest on Security Deposit (in INR Crore) Particulars Approved in Actual Deviation Gain/(Loss)due Gain/(Loss)due to the MYT Claimed in to Controllable Uncontrollable Order Truing up Factors Factors IoSD 42.58 15.71 26.87 26.87

3.19.5. The Hon’ble Commission is further requested to kindly approve sharing of gains and losses for Interest on Security Deposit for FY 2019-20.

3.20. Non-Tariff income

3.20.1. The Petitioner presents the Non-Tariff income earned by it in FY 2019-20: --

Table 43: Non-Tariff Income (in INR Crore)

Approved in ARR Actual for FY Particulars FY 2019-20 2019-20 Interest on Advances to Suppliers/Contractors 26.74 Interest on Saving Accounts 45.12 Interest Credit given by Holding Company 5.52 Interest Income 77.39 Delayed Payment Surcharge from Consumers 93.50 Miscellaneous Receipts 2.39 Sale of scrap 11.99

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Approved in ARR Actual for FY Particulars FY 2019-20 2019-20 Incentive for timely payment of power purchase 39.08

bills Miscallaneous Recoveries 120.23 Supervision Income 11.44 Other Income 278.64 Meter Rent/ Service Line Rental 90.46 Receipt from BG Invocation 21.99 Others 112.45 Total Non-tariff income 468.47 Delayed Payment Surcharge from Consumers 93.50 Principal amount on which DPS Charged 623.34 Interest Rate of funding DPS 9.65% Interest on funding Principal 60.15 Net Non-Tariff Income 359.7 408.32

3.20.2. It is prayed to the Hon’ble Commission to consider INR 408.32 Crore as Non-Tariff income during FY 2019-20.

3.21. Revenue from Sale of Power at Existing Tariff

3.21.1. Following is the category wise revenue based on the tariff approved for FY 2019-20.

Table 44: Revenue from sales of power at existing tariff

Actual Data Sr. No Category of Consumers Total (Rs ABR Sales (MU) Crores) (Rs/kWh) 1 Domestic 7,141.72 4,721.79 6.61 A Kutir Jyoti 1,159.78 731.71 6.31 i Unmetered 60.46 35.27 5.83 ii Metered 0-50 1,099.33 696.44 6.34 B DS I Rural 2,973.50 1,883.48 6.33 i Unmetered 328.58 156.69 4.77 ii Metered 2,644.91 1,726.79 6.52 a First 50 Units 1,120.76 689.27 6.15 b 51-100 Units 802.00 513.28 6.40 c 101-200 Units 672.15 450.34 6.70 d Above 200 Units 50.00 35.24 7.05 C DS II Demand Based 3,008.40 2,106.61 7.00 i First 100 Units 2,068.90 1,272.98 6.15 ii 101-200 Units 493.50 342.99 6.95 iii 201-300 Units 255.00 198.91 7.80 iv Above 300 Units 191.00 164.29 8.60 D DS III 0.04 0.04 9 2 Non_Domestic Service 1,089.62 948.49 8.70 A NDS I - Metered 243.26 172.33 7.08 i First 100 Units 77.46 49.57 6.40 ii 101-200 Units 82.40 57.27 6.95 iii Above 200 Units 83.40 62.55 7.50 B NDS II - Demand Based 846.36 776.16 9.17

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Actual Data Sr. No Category of Consumers Total (Rs ABR Sales (MU) Crores) (Rs/kWh) i Contract Demand <0.5 kW 5.49 5.47 9.96 ii Contract Demand >0.5 kW 840.87 770.69 9.17 a First 100 Units 287.30 183.84 6.40 b 101-200 Units 179.94 125.05 6.95 c Above 200 Units 373.63 280.20 7.50 3 Street Light Services 71.55 56.09 7.84 A SS Metered 12.37 9.51 7.69 B SS Unmetered 59.19 46.58 7.87 4 Irrigation & Allied Services 814.58 355.69 4.35 A IAS I 735.80 298.05 4.03 i Unmetered 560.36 195.18 3.48 ii Metered 175.43 102.86 5.78 B IAS II 78.79 57.64 7.32 i Metered 78.79 57.64 7.32 5 Public Service Connections 94.42 84.86 9.43 A Public Water Works 79.37 74.89 9.94 B Har Ghar Nal 15.05 9.96 6.75 6 Low Tension Industrial Services 427.04 345.40 7.99 A LTIS I (0-19 kW) 295.82 234.19 7.92 B LTIS II (>19 kW - 74 kW) 131.22 111.21 8.17 7 High Tension 2,085.96 1,506.03 7.22 A HTS I - 11 kV 679.72 590.34 8.69 B HTS II - 33 kV 425.71 360.76 8.47 C HTS III -132 kV 171.72 110.44 6.43 D HTS IV - 220 kV - - - E HTSS 808.81 444.50 5.50 8 Railway Traction Services 102.03 79.34 7.78 A RTS 102.03 79.34 7.78 9 Nepal - - - A Nepal 0 - - 10 SLDC Deviation Charges 58.21 33.46 11 Sale to Other State 152.82 77.78 12 Total 12037.96 8208.94 6.81 # Subsidy included in the total revenue from sale of power

3.21.2. The Petitioner requests the Hon’ble Commission to kindly approve the revenue from sale of power as submitted above.

3.22. Net ARR and revenue gap for FY 2019-20

3.22.1. The Gross ARR for the distribution company consists of the power purchase costs, interest and finance costs, O&M costs, depreciation and interest on working capital. These costs are then adjusted for Non-Tariff Income and other Income. Following is the total revenue requirement for FY 2019-20 against allocation from total approved revenue requirement by the Hon’ble Commission for FY 2019-20.

Table 45: Net Gap to be passed in Tariff for true up of FY 2019-20 (in INR Crore)

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Gain/(Los FY 2019- Gain/(Los FY 2019- s) due to Sr. 20 Deviatio s) due to Particulars 20 uncontrol No. (Approve n controllabl (Actuals) lable d) e factors factors 1 Purchase of power 6745.25 7,546.17 (800.92) (1,259.83) 458.91 PGCIL & Other transmission 2 494.36 659.01 (164.65) (164.65) charges BSPTCL & BGCL transmission 3 655.58 666.45 (10.87) (10.87) charges and SLDC charges 4 RE Purchase 58.26 70.34 (12.08) (12.08) 4 O & M Expenses (A+B+C+D) - - A Employee expenses 462.22 542.82 (80.60) (80.60) - B R&M expenses 212.62 148.73 63.89 63.89 - C A&G expenses 136.7 136.70 (0.00) (0.00) - D Holding company expenses 10.75 22.73 (11.98) (11.98) 5 Depreciation 236.05 211.77 24.28 24.28 - 6 Interest on loan 447.11 225.23 221.88 221.88 7 Other finance charges 49.1 57.66 (8.56) (8.56) 8 Return on equity 470.59 220.44 250.15 250.15 -

9 Interest on SD 42.58 15.71 26.87 26.87 12 Interest on working capital 13.66 11.42 2.24 2.24 Contingency Reserves 54.89 - 54.89 54.89 - Provisioning of Bad Debts 0 - - Total Revenue requirement (1 to 13 10089.72 10,535.18 (445.46) 12) 14 Less:: Non-tariff income 359.7 408.32 (48.62) (48.62) 15 Net Revenue requirement (13-14) 9730.02 10,126.86 (396.84) (947.23) 550.38

3.22.2. Further, in the BERC MYT (Distribution) Regulation, 2018, the Hon’ble Commission has directed the Petitioner to share the gains/losses on accounts of controllable and uncontrollable factors in the following manner:

10.1 The approved aggregate gain or loss to the Distribution Licensee on account of uncontrollable factors shall be a pass through, as an adjustment in the tariff of the Distribution Licensee, as specified in these Regulations and as may be determined in the Order of the Commission passed under these Regulations

…

11.1 The approved aggregate gain or loss to the Distribution Licensee on account of controllable factors shall be dealt with separately for aggregate gain and aggregate loss in the following manner:

(a) Aggregate gain: (i) Two-third of the amount of such gain shall be a pass through as an adjustment in the tariff of the Distribution Licensee, as specified in these

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Regulations and as may be determined in the Order of the Commission passed under these Regulations

(ii) The balance one-third of the amount of such gain shall be on account of Distribution Licensee and such amount shall be utilized at the discretion of Distribution Licensee.

(b) Aggregate Loss: (i) One-third of the amount of such loss shall normally be a pass through as an adjustment in the tariff of the Distribution Licensee as specified in these Regulations and as may be determined in the Order of the Commission passed under these Regulations, provided the Commission is satisfied that such loss is not on account of deliberate action of the Distribution Licensee;

(ii) The balance two-third of the amount of such loss shall be on account of Distribution Licensee.

Table 46: Net ARR and revenue gap for FY 2019-20 (in INR Crore) Particulars Amount (Rs. Crore) Actual ARR approved for FY 2019-20 9730.02 Carried forward trued up revenue gap/(Surplus) of FY 2017-18 along with carrying cost* - Total Revenue requirement (1+2) 9,730.02 Gain/(Loss) on account of controllable factor to (315.74) be passed in tariff (Loss)/Gain on account of Uncontrollable Factor 550.38 to be passed in tariff Subsidy Received 510.00 Net Revenue Required 8,985.38 Revenue from existing tariff 8,208.94 Net Gap/(Surplus) 776.44

3.22.3. The Petitioner requests the Hon’ble Commission to approve the net gap of INR 776.44 Crore as Revenue gap for FY 2019-20.

*Note: The Hon’ble Commission had approved a revenue gap of Rs. 1137.82 crore (including carrying cost) for SBPDCL while truing up of FY 2017-18 in the tariff order dated 25.02.2019 and had considered the same while approving the Net ARR of FY 2019-20 in the tariff order dated 25.02.2019. However, the trued-up revenue gap claimed by the Petitioner for FY 2017-18 was Rs. 3518.44 Crore. The Petitioner has challenged the approved gap for FY 2017-18 before the Hon’ble APTEL in its Appeal no. 225 of 2019. The matter is currently sub-judice and hence the

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Petitioner has not considered the carried forward Revenue gap of FY 2017-18 approved by the Hon’ble Commission while calculating its Revenue gap/surplus for FY 2019-20 in this petition. The Commission is hereby requested to consider the approach followed by the Petitioner and treat the gap/surplus of FY 2017-18 in the subsequent year’s ARR, as and when the Hon’ble APTEL issues its judgement in the Appeal no. 225 of 2019.

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4. APR Summary for FY 2020-21

4.1. Preamble

4.1.1. The Petitioner has submitted this instant Tariff Petition for FY 2021-22 which includes Annual Performance Review (APR) for FY 2020-21. While projecting the APR for FY 2020- 21 the Petitioner has considered the actual figures for the first 6 months (i.e. from April 2020 to September 2020) for power purchase and sales and pro-rata projections & escalations over previous year has been considered, keeping in mind the guiding principles defined by the Hon’ble Commission.

4.2. Estimate of category wise number of consumers, connected load and sales for FY 2020- 21

4.2.1. Estimate of category wise number of consumers

4.2.1.1. While projecting energy sales for FY 2020-21, the impact due to Central schemes like Saubhagya and UDAY were considered. The Successful implementation of these schemes ensured that all the willing households are connected to the grid, leaving little scope for addition of new consumers from KJY, DS-I and DS-II categories. These initiatives aim for the overall development of the power sector in the State.

4.2.1.2. These plans are mainly targeted for rural consumers in KJ, DS-I category and for IAS-I category, many policies at state level have been adopted, hence the growth rate projected under this category is above the normal CAGR growth as large number of new connections are to be released in the ensuing years. The Petitioner has also considered 6 months provisional data for revising the growth in number of consumers for FY 20120-21.

Table 47: Category-wise no. of consumers projected for FY 2020-21 Approved in FY 2020-21 Category of Consumers FY 2020-21 (APR) (ARR) Domestic 5,653,924 5283517 Kutir Jyoti 1,715,817 1544384 DS I Rural 2,542,717 2412801 DS II Demand Based 1,395,390 1326157 DS III - 174 Non_Domestic Service 391,135 446230 NDS I - Metered Now Demand Based 78,866 116786 NDS II - Demand Based 312,269 329444 Contract Demand <0.5 kW 8127 Contract Demand >0.5 kW 321318 Street Light Services 1,436 1,445 Street Light 1 817 852 Street Light 2 619 593 Irrigation & Allied Services 209,476 250185

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Approved in FY 2020-21 Category of Consumers FY 2020-21 (APR) (ARR) IAS I 204,632 244,900 IAS II 4,844 5,286 Public Service Connections 18,116 13080 Public Water Works 3,116 2780 Har Ghar Nal 15,000 10300 Low Tension Industrial Services 59,554 56159 LTIS I (0-19 kW) 55,209 52342 LTIS II (>19 kW - 74 kW) 4,345 3817 High Tension 1,813 1855 HTS I - 11 kV 1,675 1706 HTS II - 33 kV 120 131 HTS III -132 kV 4 5 HTS IV - 220 kV - HTS IV - 33/11 kV 14 13 Railway Traction Services - 1 RTS - 1 Nepal - - Nepal - - Total 6,335,454 6,052,472

4.2.2. Estimate of Category wise Sales

4.2.2.1. DISCOM has already provided electricity access to all willing BPL households in urban areas and both APL & BPL households in rural areas under Saubhagya Scheme.

4.2.2.2. The Petitioner has projected the category-wise sales based on the CAGR of the previous years’ data and considering factors like available average consumption per consumer per month, new consumers to be added, population data, expected conversion of unauthorized connections, connected load factor and specific growth factors and wherever the data was incongruous such incongruity was ignored while projecting the load growth for the ensuing years.

4.2.2.3. The Petitioner submits that the forecast model projects the specific consumption level (consumption per consumer) appropriate for each customer category. The Petitioner submits that this forecast is based on expected growth relationships to income and price, effect of Demand Side Management and impact of hours of service.

4.2.2.4. The Petitioner also submits that the specific consumption level along with the number of consumers in each category gives the sales figure for that particular sub-category and the final detailed calculations estimate the connected load for each tariff category. Also, 6 months provisional figure was also used for revising the category wise sales for the above projected number of consumers for FY 2020-21. The units sold are projected by taking

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average consumption per consumer per month and multiplying the same to the projected number of consumers to arrive at units sold for a year.

Table 48: Category-wise sales (MUs) projected for FY 2020-21 Approved by Category of Projected for FY Commission for FY Consumers 2020-21 (ARR) 2020-21 Kutir Jyoti 1,718.12 1,219.16 Domestic-I 4,061.28 3,218.01 Domestic-II 3,209.30 3,148.66 Domestic – III - 0.08 Non-Domestic-I 220.42 309.55 Non-Domestic-II 1,047.60 904.08 Street Light-I 11.30 14.71 Street Light-II 27.90 56.82 IAS-I 736.87 520.82 IAS-II 165.80 78.98 Public Water Works 101.86 87.36 Har Ghar Nal 20.92 51.95 LTIS-I 214.48 341.97 LTIS-II 134.49 113.76 HTS-I 676.42 598.84 HTS-II 460.14 443.05 HTS-III 173.27 217.43 HTS-IV - - HTSS 832.81 737.72 Railway - 60.49 Nepal - Total 13,812.98 12,123.43

4.2.2.5. The Petitioner has calculated the connected load considering average Load per consumer as per the actuals, analysing CAGR of past years and multiplying it by projected number of consumers to arrive at the connected load.

Table 49: Category-wise connected load (kW) for FY 2020-21

Approved by Category of Projected in FY 2020- Commission for FY Consumers 21 (APR) 2020-21 (ARR) Kutir Jyoti 218,586 211,243 Domestic-I 2,656,970 2,560,212 Domestic-II 3,854,706 31,813,442 Domestic – III - 294 Non-Domestic-I 97,190 167,438 Non-Domestic-II 1,010,366 1,103,353 Street Light-I 6,120 6,548 Street Light-II 8,180 13,364 IAS-I 582,710 624,417 IAS-II 58,432 88,301 Public Water Works 46,823 34,405

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Approved by Category of Projected in FY 2020- Commission for FY Consumers 21 (APR) 2020-21 (ARR) Har Ghar Nal 96,199 35955 LTIS-I 461,118 426,282 LTIS-II 233,284 181,418 HTS-I 360,969 350,022 HTS-II 237,522 247,756 HTS-III 54,111 31,827 HTS-IV - - HTSS 132,642 132,896 Railway - 9000 Nepal - Total 10,115,928 10,038,173

4.3. Distribution Loss

4.3.1. The DISCOM’s in a letter to Ministry of Power in July 2019, has expressed their inability to achieve the losses of 15% as agreed under UDAY. The extract of the said letter is as follows:

SBPDCL have been able to bring down the AT&C losses by 14.36% in a span of 3 years. This has been made possible through a multitude of initiatives on improving the network performance as well as on the services side to enhance billing and collection efficiency.

Further, to ensure that each household has access to electricity in the State under the Saubhagya scheme and the State Government Har Ghar Bijli Yojana, accelerated electrification of consumers was undertaken over the past 18 months to ensure completion before the scheme committed timelines. The State has now moved towards its focus of delivering 24X7 reliable and quality power to all of its consumers.

However, since most of the consumers added recently to the network under the Saubhagya scheme are LT consumers, the LT network length has further increased. SBPDCL serve 54 lakh of consumers of which more than 90% are domestic with 76% in rural areas.

The impact of the extended LT networks, especially in rural areas, directly leads to increase in losses on the low voltage network. Despite continuous multiple efforts, with the addition of such large number of consumers over the past two years, has led to a decreasing HT:LT network ratio, Therefore the accelerated loss reduction plan that had been put to action has now slowed down.

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revenues and for ensuring low distribution losses. It is also paramount to point out that although the consumer mix has a direct impact on the AT&C losses of the DISCOM, and the DISCOM has no control on this factor.

Based on an assessment, it has been observed that most states that have been able to reach AT&C loss levels below 15%, have a high HT:LT energy sales mix, however, it is also pertinent to mention that when HT energy sales are excluded, the AT&C losses for these states rise more drastically as compared to a state like Bihar, with high LT consumer base.

Therefore, to evaluate the performance of all DISCOMs on a common platform, a more pragmatic approach would be to benchmark AT&C loss levels according to the voltage levels at which electricity is distributed to the consumers and hence, by incorporating the HT: LT ratio, Bihar DISCOMs requested for a revision of the UDAY targets for FY 19-20 from the present 15% to 20%.

4.3.2. The difference in the loss target and the actual loss levels is practically impossible to achieve in the given period, and therefore this shall add on to the burden of the DISCOM. The Hon’ble Commission is also requested to see the growth rates in consumer base of SBPDCL and consider the challenging operating scenario of the Petitioner wherein most consumers being added are in rural and remote areas further adding to network losses, ongoing measures, and regulatory precedents to approve the actual distribution loss for FY 2019-20.

4.3.3. Due to addition in the number of consumers, especially in rural and remote areas, it is expected the Distribution Licensee may not be able to achieve the target for distribution loss.

4.3.4. Further, the DISCOM has also submitted a revised trajectory of Billing Efficiency, Collection Efficiency and AT&C loss to MoP, GoI.

4.3.5. The Petitioner further submits that it has submitted a revised roadmap to Ministry of Power, Govt. of India in regard to reduction in AT&C from FY 2020-21 onwards in the state considering the actual as-is situation in the state. The revised roadmap is provided below:

Sr. Unit of Particulars SBPDCL No Measurement

1 AT&C Loss A FY 21 (Projected) 39

B FY 22 (Projected) % 34

C FY 23 (Projected) 29

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D FY 24 (Projected) 23

4.3.6. Further, the challenges precipitated by Covid-19 and the consequent nationwide lockdown are also unique and devastating and is threatening to push an already moribund sector over the edge. However, with the worsening financial and cash flow situation in the sector owing to the pandemic, all investment earmarked for distribution is expected to be deferred by at least 8–12 months. This would result in delay in network modernization & loss reduction measures, which would continue to cause revenue losses for the Distribution companies and may have cascading effect on future investments.

4.3.7. Post lockdown, businesses and industrial production in the country has been instructed to commence in a staggered manner. Public places, such as shopping centers, malls, movie theatres & religious places is relatively empty as they would be asked to regulate the size of the gatherings for the next few months. People are likely to avoid places like restaurants, bars, and clubs over next 7-10 months. Domestic and international travel is extremely low which will adversely impact the electricity demand from Hotel and tourism industry.

4.3.8. With load reduction from the industrial consumers, the share of subsidizing consumers has declined while that of the subsidized consumers has increased, thereby impacting collections and the overall tariff design. The distribution companies would have to incur higher AT&C losses than the levels specified by the regulators, as the transmission & distribution loss incurred on the low tension residential consumers is far higher than that incurred on the high tension industrial and commercial consumers, which could result in under-recovery of cash collection.

4.3.9. During the COVID 19, the Metering, Billing and Collection (MBC) operations, which is mostly handled through manual interventions, has been severely hampered. With limited off-take requirements from DISCOMS, the supply side has been impacted which is devastating for the entire value chain.

4.3.10. Due to COVID 19, the first half collection for FY 21 of the two Bihar DISCOMs has got effected. This would not be only limited to this FY but would lead to a cascading effect for next 1-2 years. The demand has gone down and even the infrastructure as created under different schemes are underutilized.

4.3.11. Therefore, it is prayed to the Hon’ble Commission to consider the losses as per the projected distribution loss as provided in the table below.

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Table 50: Distribution loss

Approved in ARR of FY 2020-21 (Projected Particulars FY 2020-21 in APR) Distribution Losses 15% 24%

Table 51: Collection Efficiency

Approved in ARR of FY 2020-21 (Projected Particulars FY 2020-21 in APR) Collection Efficiency 100% 80.00%

Table 52: AT&C Loss

Approved in ARR of FY 2020-21 (Projected Particulars FY 2020-21 in APR) AT&C 15% 39%

4.4. State Transmission losses

4.4.1. The Petitioner has considered transmission loss of 3.00% as approved by the Hon’ble Commission in its previous Tariff Order as the State transmission loss. The basis for this figure is the approved normative loss, as the actual loss incurred during the period between April 2020 and September 2020 is still in the process of getting reconciled.

4.5. Central Transmission Loss

4.5.1. The Petitioner has considered transmission loss of 1.73% as per latest 52 weeks moving average https://erldc.in/market-operation/52weeksloss/ and accordingly requests the Hon’ble Commission to consider the same.

4.6. Power Purchase

4.6.1. The DISCOMs rely on allocation from central generating stations and state projects for procuring power for sale in the state. This power has been proposed to be allocated between North and South Bihar in the proportion as determined by the board resolution as detailed below.

4.6.2. Bihar State Power Holding Company Ltd (BSPHCL) issued vide its Resolution No.55- 10 dated 14th July 2017 for approval regarding distribution of power purchase agreement between NBPDCL and SBPDCL. The notification states that,

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“RESOLVED THATPower Purchase & Transmission charges bills are to be admitted and payment by both DISCOMs i.e NBPDCL and SBPDCL in the ratio 46:54 respectively w.e.f.1-4-2017subjected to the final reconciliation of actual consumption”

RESOLVED FURTHER THAT Chairman cum Managing Director, BSHPCL are here by authorized for deciding the power consumption ratio subsequently as per the actual consumption of both the DISCOMS based on the average consumption of the last 6 months of power drawal of both the DISCOMs i.e. NBPDCL and SBPDCL”

The Board further ratifies the submission made in attached agenda note

4.6.3. The Copy of above-mentioned board resolution regarding power sharing ratio between DISCOM’s is attached as Annexure.

4.6.4. The Petitioner while calculating the power purchase for FY 2019-20 has considered six months actuals for projecting the power availability for next six months.

4.6.5. NHPC, NTPC & PTC: The power purchase for existing sources has been NTPC, NHPC and PTC has been considered based on the 24 X 7 Power for All (PFA) projection and recent trends of the power plant. The power purchase is further segregated into NBPDCL and SBPDCL as per allocation ratio.

4.6.6. Medium/Short Term Sources: The power purchase from these sources are namely GMR Kamalanga and PTC. An agreement with PTC and PFCCL is executed under pilot scheme for medium term through PFC consulting limited as Nodal agency and PTC India Limited as an aggregator for 200 MW.

4.6.7. The Petitioner shall purchase power through short term from MSTC (DEEP Portal/IEX during the year in any financial year where the quantum and rate of this short term power purchase shall be within the limit of total quantum and rate of power purchase approved by the Hon'ble Commission.

4.6.8. Open Market Purchase: Petitioner is currently procuring power from IEX, DB power, GMR ETL and TATA ETL on the basis of Demand.

4.6.9. New Sources: The power purchase for the new sources has been considered based on the commissioning status received from generators and CEA reports. Further the allocation of power from the new projects is in the ratio of 46:54 for NBPDCL & SBPDCL as per the board resolution.

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4.6.10. As per the communication from SECI, part capacities from Phase – III (100 MW) Wind and Phase – V (175 MW) wind are expected to commercially operationalize from December 2020. Accordingly, power purchase has been projected from the said plants/

4.6.11. Further, PPA with Korba has expired in September 19, so power purchase has not been considered for projections in FY 2020-21. Also, PPA with Tacher is expiring in Februaru 2021. Hence, power purchase from Talcher has been considered only till February 2021. While arriving at the allocated capacity to Bihar for FY 2020-21, maintenance schedule of all the applicable plants has also been considered.

4.6.12. Renewable Power Purchase Obligation: It is submitted that Hon’ble Commission has notified the BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation), Regulations, 2010, BERC (Multi Year Distribution Tariff) Regulations, 2015 and BERC (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010. Further there were amendments in both Regulations wherein the RPO was modified.

4.6.13. The Commission has also come up with its 3rd amendment in due course BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 and amended Clause 4 as follows:

4.6.14. The details of RPO to be met by the Petitioner for FY 2020-21 are given in the table below:

Table 53: Details of RPO to be met for FY 2020-21 (APR)

Particular units FY 2020-21 Energy Sale MU 12123.43 Hydro Power Purchase (B) MU 2237.47 Inter-State Transmission Loss in % (C) % 1.73% Inter-State Transmission Loss in % (D=B*C) MU 38.71 Intra-State Transmission Loss in % (E) % 3.00% Intra-State Transmisison Loss (F=E*(B-D)) MU 65.96 Distribution Loss (%) (G) % 24.00% Distribution Loss (H=G*(B-D-F)) MU 511.87

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Particular units FY 2020-21 Hydro Power Consumed (I=B-D-F-H) MU 1620.93 Conventional Power Consumed (J=A-I) MU 10502.49 RPO Targets (%) % 14.25% Solar % (K) % 6.75% Non-Solar % (L) % 7.50% RPO Targets MU 1496.60 Solar (J*K) MU 708.92 Non-Solar (J*L) MU 787.69 Renewable Power Purchase 1073.60 Solar MU 116.95 Non-Solar MU 956.65 Captive Consumtion Solar MU 17.89 BREDA Off-grid solar MU 5.09 BREDA GCRT solar 0.39 SBPDCL DDG Standalon MU 2.27 SBPDCL DDG Minigrid MU 2.89 SBPDCL IPDS 0.57 SBPDCL Net/Gross Meter Consumer 4.91 SPV Plant Solar Genration 1.76 Captive Consumption Non Solar BERDA MU 92.29 REC Purchase MU 0.00 Solar MU 0.00 Non Solar MU 0.00 Total Solar RPO Compliance MU 134.84 Total Non Solar RPO Compliance MU 1048.94 RPO Shortfall MU 312.83 Solar Shortfall MU 574.08 Non-Solar Shortfall MU -261.25 Carried Forward Shortfall from FY 2019-20 MU 134.83 Carried Forward Solar Shortfall MU 192.26 Carried Forward Non-Solar Shortfall MU -57.43 Total Shortfall MU 447.67 Solar Shortfall MU 766.35 Non-Solar Shortfall MU -318.68

4.6.15. The Petitioner has already been drawing solar power from a few sources like SECI, Welspun, ACME clean tech, Avantika and Azure Power. The Petitioner has also made PPA with SECI & NTPC for purchase of renewable power (Solar and Non Solar) to the tune of 2,000 MW which were expected to be in commercial operation by FY 2020-21. However, the plants have extended their SCD date in FY 2021-22 owing to various technical and commercial reasons one of which is the impact of COVID-19. The Petitioner has planned its power purchase in FY 2020-21 as per the original SCOD of the upcoming plants. However, due to the extension in SCOD of the renewable plants as well as non-

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availability of RECs due to non-operational short-term market (owing to COVID-19) has led to a huge burden of shortfall in achieving the RPO targets for the Petitioner.

4.6.16. The Petitioner therefore submits that the shortfall if any on actuals may either please be allowed to carry forward to next year so as to meet the total RPO on cumulative basis or the RPO targets may please be relaxed for the FY 2020-21 as all the related factors in fulfilling the set RPO target are uncontrollable in nature for the DISCOM. The target for FY 2020-21 may be set on actual Renewable purchased by the Petitioner in FY 2020- 21.

4.6.17. For Projecting the Power Purchase Quantum for FY 2020-21, The Petitioner has considered the actual Power Purchase quantum for the period April to June 2020 and projected for remaining months based on the following methodology.

i. Share allocation has been considered as per Eastern Regional Power Committee.

ii. The Plant Load Factor (PLF) for each plant has been considered as per CEA Report- Monthly/Annual Report for existing conventional plants based on average of average PLF of last 4 years as applicable and the current six months PLF of FY 2020-21. For new and upcoming plants, the minimum technical level PLF of 55% is considered for projection.

iii. Normative auxiliary consumption provided by Central Electricity Regulatory Commission (CERC) for the thermal and hydro plants and the auxiliary consumptions specified for plants. For the state plants PLF highest among the PLF norms specified by BERC and the plant wise auxiliary consumption determined by BERC for thermal, and biomass has been considered. For the solar plants highest among the CUF of 19%.

iv. Considering the PLF as mentioned above and using the power purchase allocation data mentioned in the above table total number of units purchased were calculated from every source/ plant for every month separately.

4.6.18. The month wise projections data for the months of October 2020 to March 2021 is added to the actuals of April 2020 to September 2020.

4.6.19. Projections for power purchase: Accordingly, the revised projections of power purchase for FY 2020-21 is tabulated below:

Table 54: Power purchase allocation projected for FY 2020-21 (in MU)

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Name of The Source Share allocated (MW) Units purchased (MU) Central Generating Stations 2,427.53 13,703.67 FSTPP I &II 271.28 1,435.60 FSTPP III 58.10 343.62 KHSTPP I 189.87 1,123.42 KHSTPP II 40.34 225.16 Barh Stage II 646.77 3,376.30 Nabinagar (BRBCL) Unit I - III 40.50 175.27 Talcher Stage I 222.73 1,556.82 KBUNL Stage II 157.89 651.90 NPGCL Unit I 302.11 2,110.61 Darlipali STPS Unit I 51.24 207.87 Darlipali STPS Unit II 51.24 102.62 Chuka 43.20 362.50 Rangit 11.34 65.92 Tala 139.05 656.28 Teesta 58.55 381.02 Mangdechu 143.35 771.76 Banking (RUVNL) - 157.00 State Generating Stations 342.52 929.61 BSPHC 29.32 24.28 KBUNL Stage I 118.80 216.91 BTPS Stage I Unit I 59.40 109.71 BTPS Stage II Unit I 135.00 578.71 IPPs 263.52 1,644.83 GMR 140.40 888.70 JITPL 123.12 756.13 Renewables 554.26 1,045.94 M/s Sunmark Energy Projects 5.40 8.61 Limited (Formerly MBCEL) M/s Response renewable Energy 5.40 8.40 Ltd, Kolkata. M/s Avantika Contractors Ltd., 2.70 4.10 Hyderabad M/s Glatt Solutions Pvt. Ltd, 1.62 2.29 Kolkata. Alfa Infraprop Pvt. Ltd. 10.80 17.11 Udipta Energy & Equipment Pvt. 2.70 4.01 Ltd. Azure Power India Pvt. Ltd. 5.40 7.55 Welspun Renewables Project - I 5.40 8.64 Welspun Renewables Project – II 8.10 12.88 Welspun Renewables Project – III 8.10 12.98 Acme Cleantech Project 8.10 12.45 (Nalanda) Acme Cleantech Project 5.40 8.49 (Magadh) Solar Energy Corporation of India 5.40 9.42 Ltd., Government of India Wind ISTS Scheme Tranche I (PTC) (Greeen Infra, Inox, Mytrah 108.00 252.47 & Ostro) Wind ISTS Scheme Tranche II 54.00 165.55 (SECI) (Orange) SECI Green Infra 54.00 144.47 Torrent Power 26.89 3.86 Adani Green 27.00 20.84 Alfanar 27.00 18.92

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Name of The Source Share allocated (MW) Units purchased (MU) Betam 27.11 92.12 Boreas Renewable 94.50 81.09 New Swadeshi Sugar Mill, 5.40 12.58 Narkataganj Hasanpur Sugar Mill, 7.83 17.31 Dalsinghsarai Bharat Sugar Mills, Sidhwalia, 8.10 17.76 Gopalganj Hari Nagar Sugar Mills, Hari 7.83 19.73 Nagar, West Champaran HPCL Biofuels Ltd., Sugauli, East 10.80 23.84 Champaran HPCL Biofuels Ltd., Lauria, West 10.80 23.78 Champaran Riga Sugar Company Ltd. 1.62 3.55 Siddhashram Rice Mill Cluster 0.54 2.15 Pvt ltd Bihar Distillers & Bottlers Pvt ltd 5.08 21.17 Tirupati Sugar 3.24 7.83 Others 59.40 669.98 PTC(IEX) - 352.80 PTC JITPL 37.13 208.64 PTC SKS Power 22.28 108.53 Total 3,647.23 17994.04

4.6.20. The petitioner has arrived at a power purchase of 17994.04 MU for FY 2020-21.

4.7. Energy Balance

4.7.1. Based on above discussed elements such as sales, losses & power availability, the revised projected energy balance for FY 2020-21 is as under –

Table 55: Energy Balance for APR FY 2020-21

Approved by Projected for Sr No Particulars Unit Commission for APR (FY 2020- FY 2020-21 (ARR) 21) A Energy Requirement 1 Energy sales MU 13,812.98 12,123.43 2 Less: Inter-state sales MU - Energy sales excluding Inter-state 3 MU 13,812.98 12,123.43 sales 4 Distribution Loss % 15% 24.00% 5 Add: Distribution Loss MU 2,437.58 3,828.45 Total energy required at Distribution 6 MU 16,250.56 15,951.87 periphery 7 Add: Inter-state sales MU - Total energy required at Distribution 8 MU 16,250.56 15,951.87 periphery 9 State Transmission Loss % 3.00% 3.00% 10 Add: State Transmission Loss MU 502.59 493.36 Total energy required at State 11 MU 16,753.16 16,445.23 Transmission Periphery

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Approved by Projected for Sr No Particulars Unit Commission for APR (FY 2020- FY 2020-21 (ARR) 21)

B Energy Available 1 From Central Sector MU 21,467.69 13,703.67 2 From IPP MU 1,644.83 3 From State Generating Stations MU 3,742.42 929.61 4 From Renewable Sources MU 1,045.94 5 UI (Net) MU - 6 Others(please specify) MU 669.98 7 CTU losses % 1.78% 1.73% 8 CTU Losses MU 382.12 265.53 Net power available at State 9 MU 24,827.99 17,728.51 periphery (1+2+3+4+5+6-8) Energy Surplus/(Deficit) at State MU 8,074.83 1,283.28 Periphery

4.7.2. The Petitioner has further calculated the surplus energy at ex-bus including the interstate transmission loss to be 1302.55 MU based on the 1283.28 MU at state periphery. The Petitioner has used the ratio of total power purchase from interstate power plants contributing to interstate transmission loss to reach to the surplus figure at ex-bus. 4.7.3. The Petitioner humbly request the Hon’ble Commission to approve the aforementioned revised energy balance for FY 2020-21.

4.8. Power Purchase Cost

4.8.1. The power purchase cost mainly comprises of fixed charges and energy charges for two part tariff stations i.e. NTPC, NHPC & PTC in case of Petitioner. The Petitioner has considered the actual energy charges and fixed cost for these power stations based on actual 6 months data for FY 2020-21. The average power purchase cost as mentioned below.

i. Petitioner has considered the new plants as per information available with the Petitioner. The new plants for which cost details are not available, the cost break-up of similar capacity plants has been considered for projection.

ii. The power purchase cost projections have been undertaken by considering the average of actual fixed cost and fuel costs respectively for the previous 6 months.

4.8.2. The Petitioner requests Hon’ble Commission to allow power purchase costs for APR period FY 2020-21 as provided in the table below.

4.8.3. Power purchase costs: The table here provides detailed power purchase costs-

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Table 56: Power Purchase Projection for APR for FY 2020-21

Share Units Fixed Energy Miscellaneous Total Cost Average Name of The Source allocated purchased PLF (%) charge cost (Rs cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) Central Generating Stations 2,427.53 13,703.67 2,218.04 3,286.23 35.79 5,540.05 4.04 FSTPP I &II 271.28 1,435.60 66.68% 155.89 396.58 10.89 563.36 3.92 FSTPP III 58.10 343.62 66.68% 55.27 93.54 0.22 149.03 4.34 KHSTPP I 189.87 1,123.42 72.22% 127.49 246.05 0.09 373.64 3.33 KHSTPP II 40.34 225.16 72.22% 24.78 46.70 0.02 71.50 3.18 Barh Stage II 646.77 3,376.30 63.60% 813.91 905.90 14.66 1,734.47 5.14 Nabinagar (BRBCL) Unit I - III 40.50 175.27 53.04% 64.03 42.61 0.02 106.66 6.09 Talcher Stage I 222.73 1,556.82 84.23% 140.11 313.79 6.37 460.27 2.96 KBUNL Stage II 157.89 651.90 41.12% 215.17 175.74 2.73 393.63 6.04 NPGCL Unit I 302.11 2,110.61 82.13% 507.50 423.98 0.18 931.66 4.41 Darlipali STPS Unit I 51.24 207.87 49.84% 45.05 21.62 0.56 67.24 3.23 Darlipali STPS Unit II 51.24 102.62 49.84% 22.24 10.67 - 32.92 3.21 Chuka 43.20 362.50 61.59% - 87.06 - 87.06 2.40 Rangit 11.34 65.92 66.25% 12.21 12.56 0.01 24.78 3.76 Tala 139.05 656.28 44.34% - 141.76 - 141.76 2.16 Teesta 58.55 381.02 62.48% 34.36 44.31 0.03 78.71 2.07 Mangdechu 143.35 771.76 46.38% - 323.37 - 323.37 4.19 Banking (RUVNL) - 157.00 0.00% ------State Generating Stations 342.52 929.61 335.11 276.11 47.12 658.34 7.08 BSPHC 29.32 24.28 12.74% - 5.85 - 5.85 2.41 KBUNL Stage I 118.80 216.91 41.12% 106.74 72.48 - 179.22 8.26 BTPS Stage I Unit I 59.40 109.71 41.12% 49.36 34.62 47.07 131.05 11.95 BTPS Stage II Unit I 135.00 578.71 41.12% 179.00 163.16 0.06 342.22 5.91 - IPPs 263.52 1,644.83 377.50 188.80 55.99 622.29 3.78 GMR 140.40 888.70 68.45% 166.23 106.38 66.18 338.79 3.81 JITPL 123.12 756.13 49.68% 211.27 82.42 (10.19) 283.50 3.75 - Renewables 554.26 1,045.94 1109.63% - 397.47 - 397.47 3.80 M/s SunmarkEnergy Projects Limited 5.40 8.61 19.00% - 4.88 - 4.88 5.67 (Formerly MBCEL)

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Share Units Fixed Energy Miscellaneous Total Cost Average Name of The Source allocated purchased PLF (%) charge cost (Rs cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) M/s Response renewable Energy Ltd, 5.40 8.40 19.00% - 4.76 - 4.76 5.67 Kolkata. M/s Avantika Contractors Ltd., Hyderabad 2.70 4.10 19.00% - 3.15 - 3.15 7.69 M/s Glatt Solutions Pvt. Ltd, Kolkata. 1.62 2.29 19.00% - 1.30 - 1.30 5.67 Alfa Infraprop Pvt. Ltd. 10.80 17.11 19.00% - 13.46 - 13.46 7.87 Udipta Energy & Equipment Pvt. Ltd. 2.70 4.01 19.00% - 3.20 - 3.20 7.98 Azure Power India Pvt. Ltd. 5.40 7.55 19.00% - 6.34 - 6.34 8.39 Welspun Renewables Project - I 5.40 8.64 19.00% - 7.52 - 7.52 8.70 Welspun Renewables Project – II 8.10 12.88 19.00% - 11.13 - 11.13 8.64 Welspun Renewables Project – III 8.10 12.98 19.00% - 11.11 - 11.11 8.56 Acme Cleantech Project (Nalanda) 8.10 12.45 19.00% - 10.87 - 10.87 8.73 Acme Cleantech Project (Magadh) 5.40 8.49 19.00% - 7.42 - 7.42 8.73 Solar Energy Corporation of India Ltd., 5.40 9.42 19.00% - 5.18 - 5.18 5.50 Government of India Wind ISTS Scheme Tranche I (PTC) 108.00 252.47 26.94% - 89.12 - 89.12 3.53 (Greeen Infra, Inox, Mytrah & Ostro) Wind ISTS Scheme Tranche II (SECI) 54.00 165.55 31.05% - 44.86 - 44.86 2.71 (Orange) SECI Green Infra 54.00 144.47 31.50% - 32.00 - 32.00 2.22 Torrent Power 26.89 3.86 37.66% - 1.05 - 1.05 2.71 Adani Green 27.00 20.84 32.40% - 5.67 - 5.67 2.72 Alfanar 27.00 18.92 31.32% - 5.13 - 5.13 2.71 Betam 27.11 92.12 35.73% - 23.21 - 23.21 2.52 Boreas Renewable 94.50 81.09 36.02% - 22.95 - 22.95 2.83 New Swadeshi Sugar Mill, Narkataganj 5.40 12.58 55.00% - 6.39 - 6.39 5.08 Hasanpur Sugar Mill, Dalsinghsarai 7.83 17.31 55.00% - 10.76 - 10.76 6.22 Bharat Sugar Mills, Sidhwalia, Gopalganj 8.10 17.76 55.00% - 6.26 - 6.26 3.53 Hari Nagar Sugar Mills, Hari Nagar, West Champaran 7.83 19.73 55.00% - 10.99 - 10.99 5.57 HPCL Biofuels Ltd., Sugauli, East Champaran 10.80 23.84 55.00% - 13.27 - 13.27 5.57 HPCL Biofuels Ltd., Lauria, West Champaran 10.80 23.78 55.00% - 13.24 - 13.24 5.57 Riga Sugar Company Ltd. 1.62 3.55 55.00% - 2.22 - 2.22 6.26 Siddhashram Rice Mill Cluster Pvt ltd 0.54 2.15 80.00% - 1.59 - 1.59 7.39

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Share Units Fixed Energy Miscellaneous Total Cost Average Name of The Source allocated purchased PLF (%) charge cost (Rs cost (Rs Crs) (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) Bihar Distillers & Bottlers Pvt ltd 5.08 21.17 80.00% - 13.47 - 13.47 6.36 Tirupati Sugar 3.24 7.83 55.00% - 4.97 - 4.97 6.34 - Others 59.40 669.98 0.00% - 234.45 0.13 234.58 3.50 PTC JITPL 37.13 208.64 49.68% - 86.48 - 86.48 4.14 PTC SKS Power 22.28 108.53 50.92% - 34.49 - 34.49 3.18 - Transmission and Other Charges - - 1,313.98 - - 1,313.98 SLDC - - 3.50 - - 3.50 BGCL - - 248.51 - - 248.51 BSPTCL - - 460.91 - - 460.91 POSOCO - - 2.70 - - 2.70 PGCIL ULDC CHG ------PGCIL - - 598.35 - - 598.35 Open Access Charges ------Total 3,647.23 17994.04 4,244.62 4,383.06 139.02 8,766.71 4.87

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4.8.4. The Petitioner humbly requests the Hon’ble Commission to approve the above-mentioned revised power purchase cost for the utility for FY 2020-21.

4.9. Transmission Charges

4.9.1. It is submitted that the Petitioner has to pay transmission charges to POWERGRID for use of transmission facilities enabling power drawl from eastern region. POWERGRID charges has been considered as actually incurred in FY 2020-21 per month without the rebate provided in the month of April and May. However, the rebate provided by POWERGRID in the month of April and May has been reduced from the annual charges.

4.9.2. Further, the Petitioner has also considered the actual per month charges billed to the Petitioner by BSPTCL, POSOCO & BGCL in the first six months of FY 2020-21. Further, SLDC charges have been considered as approved by the Hon’ble Commission for FY 2020-21.

4.9.3. We request the Hon’ble Commission to approve the transmission and related charges for inter-state as well as intra-state transmission transactions for FY 2020-21 as per the below given table –

Table 57: Transmission charges for APR (in INR Crore)

Particulars Projected for FY 2020-21 (RE) Total transmission Charges 1,313.98

4.10. Capital Investment Plan, Capitalization and Funding

4.10.1. The Petitioner submits that it has estimated Capex, Capitalization and funding considering the capital expenditure and investments to be done as per the recent developments and keeping in mind the targets to be achieved for capitalisation under various schemes during the forthcoming years. In line with the above, the Petitioner has computed the capitalization of investment on the assumption that 80% of the capitalization will come from Opening CWIP and 20% of the capitalization from fresh investment would capitalize in FY 2020-21.

4.10.2. During FY 2020-21, the amount of capitalization is comparatively less as compared to capitalization done in previous years due to hampering of operations of the DISCOMs in the first quarter of 2020-21 owing to Covid- 19 pandemic. Further, the DISCOMs are specifically focusing on capitalization of assets created under various schemes post unbundling of BSEB.

South Bihar Power Distribution Company Limited 75

4.10.3. The opening figures of CWIP, Gross Fixed Assets, Grants, etc. are taken from the audited annual accounts for FY 2019-20.

4.10.4. The below table represents the capitalization plan for the Petitioner

Table 58: Capitalization plan for FY 2020-21 (in INR Crore)

Name of the Scheme FY 20-21

BRGF 110.88 R-APDRP 46.23 NABARD Phase VIII NABARD Phase XI 0.60 MP/CM LAD 0.81 Deposit Scheme 2.40 ADB 87.15 ACA State Plan 16.54 Burnt DTR State Plan 12.62 State Plan -Others 50.50 Reconductoring 34.88 IPDS 201.47 RGGVY 56.42 DDUGJY 54.55 APL Connection/Saubhagya 55.38 Own Sources 12.55 Total 742.98

4.10.5. The Hon’ble Commission is requested to consider the capitalization plan as estimated for FY 2020-21. 4.10.6. The details of the opening CWIP, investment during the year, capitalization and funding for CAPEX for FY 2020-21 is detailed in the table below:

Table 59: CWIP, Capitalization and Funding of Capitalization projected for FY 2020-21 (in INR Crore)

Approved for Projected for FY Sl. No. Particulars FY 2020-21 2020-21 (RE)

1 Opening CWIP 5287.50 4905.95 2 New Investment 178.61 2063.75 3 Less Capitalization 1216.61 742.98 (a) CWIP 973.29 594.38 (b) New Investment 243.32 148.60 4 Closing CWIP (1+2-3) 4294.04 6226.72 5 Funding

South Bihar Power Distribution Company Limited 76

Approved for Projected for FY Sl. No. Particulars FY 2020-21 2020-21 (RE)

(a) CWIP Capitalization 973.29 594.38 (i) Grant 608.89 263.58 (ii) Equity 248.38 263.57 (iii) Loan 116.02 215.83 New Investment (b) 243.02 148.60 Capitalization (i) Grant 152.22 52.72 (ii) Equity 62.10 52.71 (iii) Loan 29.00 43.17 6 Total capitalization 2050 742.98 (i) Total Grant 761.11 263.58 (ii) Total Equity 310.48 263.57 (iii) Total Loan 145.02 215.83

4.11. Operation & Maintenance (O&M) Expenses

4.11.1. As per regulation 22 of BERC (Multi Year Distribution Tariff) Regulations, 2018, O&M expenses comprises of Repair and maintenance expenses, Administrative & General expenses and employee expenses. In the below paragraphs the Petitioner would like to submit the estimated expenses on account of O&M for FY 2020-21 along with the reasoning and basis of projections.

4.11.1.1. Employee Expenses: The Commission, in terms of regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined norms for computation of Employee cost for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 20.02.2019. Accordingly, the employee cost computed for 2020-21 is shown in the table below:

Table 60: Employee expenses (in INR Crore)

Sr.No Particulars Approved Base Value 2019-20 1 Average annual CPI index 4.22% 5.34% Norms-Number of personnel per 2 0.2667 0.2667 0.2667 1000 consumers Norms-Number of personal per 3 19.4782 19.4782 19.4782 substation 4 No. of consumers (1000) 6335 6052 5 No of substations 428 550 Annual expenses per personnel 6 0.0474 0.043614 0.0486 (Rs. Cr) 7 Employee cost per 1000 consumers 80.09 78.42 8 Employee cost per substation 395.16 520.44

South Bihar Power Distribution Company Limited 77

Sr.No Particulars Approved Base Value 2019-20 9 Total Employee cost 475.25 598.86

4.11.1.2. The Hon’ble Commission is therefore requested to approve the employee expenses for FY 2020-21.

4.11.1.3. Repair and maintenance expenses: Regulation 22.2 of BERC (Multi Year Distribution Tariff) Regulations 2018, specify R&M expenses as percentage (as per the norm determined) of Gross Fixed Assets excluding land cost for the year.

4.11.1.4. The Commission had determined the R&M norm i.e. ‘K’ factor at 1.66% for NBPDCL and 2.16% for SBPDCL for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 25.02.2019. The detailed computation of R&M expenses for the FY 2019-20 is shown below:

Table 61: R&M Expenses for APR (in INR Crore)

FY 2020-21 Sr.No Particulars Approved in RE Actual 1 Opening GFA 10660.22 2 Opening Land Cost 1544.56 3 Opening GFA exc land cost 9683.17 9,115.66 4 K Factor 2.16% 2.16% 5 R&M Expense 209.16 196.90 4.11.1.5. Therefore, it is requested to the Hon’ble Commission to approve INR 196.90 Crore towards expenses against R&M as claimed by the Petitioner.

4.11.2. Administrative and General Expenses:

4.11.2.1. The Commission, in terms of regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined A&G norm for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 20.02.2019.

4.11.2.2. Accordingly, the A&G computed for 2019-20 (True-up), is shown in the table below:

Table 62: A&G expenses (in INR Crore)

FY 2020-21 Sr.No Particulars Approved Base Actual value 1 Average annual WPI CPI index 2.98% 2.95% 2 Norms-A&G expenses per 1000 consumers 1.778 1.778 1.778 3 No. of consumers (1000) 6335 6052 4 No of employees 11264 12183 5 Annual expenses per 1000 consumers (Rs. Cr) 0.0038 0.00356 0.01094

South Bihar Power Distribution Company Limited 78

FY 2020-21 Sr.No Particulars Approved Base Actual value 6 Annual expenses per employee (Rs. Cr) 0.0100 0.00942 0.00647 7 A&G cost per 1000 consumers 24.07 66.21 8 A&G cost per employee 112.64 78.78 9 Total A&G cost 136.71 144.99

4.11.2.3. It is requested to the Hon’ble Commission to approve the Administrative and General expenses of INR 144.99 Crore for FY 2020-21.

4.11.3. Allocation of Holding Company cost: As per Schedule ‘F”, the Holding Company shall handle all issues relating to the subsidiary companies in respect of: -

“SCHEDULE “F” REORGANISATION OF BSEB & TRANSFER OF PERSONNEL Part II COMMON SERVICES The Testing Divisions, Training Department at Head-Quarter and all the Departments at the Corporate Head Office like – • General Administration • Accounts and Finance • IT • Stores & Purchase • Transmission/Distribution/Generation • Personnel • Publicity • Legal • Vigilance and Security • Commercial • Planning • Civil Engineering • Transmission (O&M) • Rural Electrification Shall constitute “Common Services‟ which shall continue to provide services to all successor entities during the Interregnum period, until issue of further transfer notifications allocating the employees to respective companies.”

4.11.3.1. The Petitioner is claiming the holding company expenses taking the expenses incurred in FY 2019-20 as the same and escalating it by 10% for projecting for Annual performance review of FY 2020-21. The below table represents the allocation of Holding Company cost towards the Petitioner for FY 2020-21:

Table 63: Allocation of Holding Company Cost for FY 2020-21 (in INR Crore)

Approved for Particulars FY 2020-21(RE) FY 2020-21 Holding company expenses 19.34 22.73 considered for FY 2018-19 (RE) Escalation % considered 4.22% 10% Increase considered 0.82 2.27 Total 20.16 25

South Bihar Power Distribution Company Limited 79

4.11.3.2. Therefore, the Petitioner requests the Hon’ble Commission to approve INR 25 Crore towards holding company expenses for FY 2019-20.

4.11.4. Summary of O&M Expenses: The below table summarizes the O&M expenses estimated by the Petitioner for FY 2020-21:-

Table 64: Summary of O&M Expenses for APR (in INR Crore)

Approved for Particulars FY 20-21 (RE) FY 2020-21 Employee Cost 475.25 598.86 R&M Expense 209.16 196.90 A&G Expenses 136.71 144.99 Holding Company 20.16 25.00 Expenses Total O&M Cost 841.28 965.75 Less: Expenses capitalised Net O&M expenses (5-6) 841.28 965.75

4.12. Gross Fixed Assets

4.12.1. The Petitioner hereby submits the computation of Gross Fixed Assets considering the opening fixed assets, capitalization as per the new schemes in FY 2020-21. 4.12.2. Through various new schemes like reconductoring introduced during FY 2018-19 huge Capitalization is planned in FY 2020-21. The Petitioner has provided the detailed Capitalization plan in additional information requested by the Hon’ble Commission explaining the sources of funding in every schemes like equity, loan and grants. 4.12.3. The table below demonstrates the Asset addition planned in FY 2020-21 and closing balance of Gross Fixed Assets as on FY 2019-20 –

Table 65: Summary GFA for FY 2020-21 (in INR Crore)

Closing balance FY Addition during FY Closing balance FY Assets group 2019-20 2020-21 (RE) 2020-21 (RE) Land and land rights 1,544.56 97.79 1,642.35 Buildings 135.60 10.13 145.73 Hydraulic Works 0.98 0.07 1.05 Others Civil Works 43.29 2.96 46.25 Plant and Machinery 2,418.85 171.80 2,590.64 Lines and Cable Network 6,362.44 447.86 6,810.30 Vehicles 1.34 0.08 1.42 Furniture and Fixtures 5.34 0.37 5.72 Office Equipment 146.30 11.82 158.13 Spare Units/Service 1.19 0.08 1.27 Units Assets taken over from Licensees pending final 0.32 0.02 0.34 valuation

South Bihar Power Distribution Company Limited 80

Closing balance FY Addition during FY Closing balance FY Assets group 2019-20 2020-21 (RE) 2020-21 (RE) GRAND TOTAL 10,660.22 742.98 11,403.20

4.12.4. The funding of GFA is done through equity, Loan and grants. The Hon’ble Commission is requested to approve the GFA as determined by the Petitioner for FY 2020-21

4.13. Depreciation on Gross Fixed Assets

4.13.1. As per regulation 23 of Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018 the Petitioner has estimated the depreciation on the Gross Fixed assets reduced by grants. The Petitioner has calculated depreciation on GFA based on the Capitalization plan for FY 2020-21. 4.13.2. The Petitioner would like to clarify that while claiming the depreciation the value of Land and addition thereon is reduced from the opening value and additions during the year. 4.13.3. As per the standard practice, the Petitioner shall not be allowed any depreciation on account of assets that has been capitalized through grants. Therefore, the Petitioner has reduced the Depreciation on the assets, which were added through grants. 4.13.4. Below is the table representing the calculations for claiming depreciation for FY 2020-21.

Table 66: Depreciation on GFA for APR (in INR Crore)

Approved for FY Projected for FY Sl. No. Particulars 2020-21 2020-21 Gross fixed assets of the 1 9683.17 9,115.66 beginning of the year 2 Additions during the year 855.65 645.19 3 Employee cost capitalised - 4 IDC - 5 Closing GFA 10538.82 9760.84 6 Average GFA 10111 9438.25 Weighted Average Rate of 7 4.53% 4.91% Depreciation Gross Depreciation at the end 8 458.43 463.14 of the year 9 Opening grants 5310.84 4,368.48 10 Grants during the year 761.11 227.41 12 Total Grants 5878.49 4,595.89 13 Average Grants 5594.67 4,482.18 Weighted Average rate of 14 4.53% 5.36% Depreciation 15 Depreciation for GFA on Grants 253.66 240.39 Net Depreciation of GFA on 16 204.77 222.75 loans (8-15)

4.13.5. Therefore, in the light of the above facts and calculations, it is requested to the Hon’ble Commission to approve the above given figure of INR 222.75 Crore towards depreciation on Fixed Assets for FY 2020-21

South Bihar Power Distribution Company Limited 81

4.14. Return of Equity

4.14.1. The Regulation 27 of BERC (Multi Year Distribution Tariff) Regulations, 2018 provides for calculation of Return on Equity as demonstrated as under: (a) Return on equity shall be computed on 30% of the capital base or actual equity, whichever is lower. Provided that assets funded by consumer contribution, capital subsidies/ grants and corresponding depreciation shall not form part of the capital base. Actual equity invested in the Distribution Licensee as per book value shall be considered as perpetual and shall be used for computation in this Regulation. Provided further that the premium if any raised by the Licensee while issuing share capital and investment of internal resources created out of its free reserves, for the funding of the Scheme, shall be reckoned as paid up capital for the purpose of computing return on equity, provided such premium amount and internal resources are actually utilized for meeting the capital expenditure of the distribution system, and are within the ceiling of 30% of capital cost approved by the Commission.

(b) The return on the equity invested shall be allowed from the date of start of commercial operation after put to use.

(c) Return on equity shall be computed at the rate of 15.5% for the project which is commissioned w.e.f. 01.04.2016 and further incentive equivalent to 0.5% will be allowed in the form of RoE, if the project is completed within original schedule period. However, Return on Equity for the project commissioned prior to 01.04.2016 shall be allowed at the rate of 14%.

4.14.2. The Petitioner has calculated return on equity on the basis of the closing balance of fixed assets as claimed in True up for FY 2019-20. The 30% of the addition in GFA is added to the opening GFA which is further reduced by the amount of grant contributing to the addition of Fixed Assets. Further, RoE shall be allowed @14% on the net capital base as on 31.03.2016 and @15.50% on the net capital base w.e.f. 01.04.2016. 4.14.3. The table below demonstrates the calculation for Return on equity:-

Table 67: Return on equity for FY 2020-21 (in INR Crore)

Approved in APR Projected for Particulars FY 2020-21 FY 2020-21 Closing equity to end of 31.03.2016 638.06 638.06 Rate of return on equity % 14.00% 14.00% MAT rate

South Bihar Power Distribution Company Limited 82

Approved in APR Projected for Particulars FY 2020-21 FY 2020-21 Rate of return on equity (pre tax) 14.00% Return on Equity 89.33 89.33 Equity with effect from 1st April

2016 Opening equity 901.04 1002.92 Equity Addition during the year 119.48 143.82 Closing Equity 1020.524 1146.74 Average Equity 960.78 1074.83 Rate of return on equity 15.50% 15.50% MAT rate Rate of return on equity (pre tax) Return on Equity 148.92 166.60 Total Return on Equity 238.25 255.93

4.14.4. In the light of above facts, the Petitioner requests the Hon’ble Commission to approve INR 255.93 Crore towards return on equity for FY 2020-21.

4.15. Interest on Consumer Security Deposit

4.15.1. The Petitioner has taken the opening balance of consumer security deposit actually paid as per the audited financial statements for FY 2019-20. 4.15.2. It has been assumed that the additions to the balance of consumer security deposits is as per actual addition in FY 2019-20. Therefore, INR 63.49 Crore is considered as addition in consumer security deposits for FY 2019-20. 4.15.3. The interest on consumer security deposits is calculated at the rate of 4.25% which is bank rate of RBI as on 04.12.2019.

Table 68: Interest on consumer security deposit (in INR Crore)

Approved for FY 2020-21 S. No. Particulars FY 2020-21 (RE) Opening Security 1 621.08 630.52 Deposit Addition / (Deletion) 2 54.05 63.49 during the year Closing Security 3 675.13 694.0 Deposit Average Security 4 648.11 662.27 Deposit (1+3)/2 5 RBI Bank Rate 5.40% 4.25% Interest on Security 6 35.00 28.15 Deposit

4.15.4. The Petitioner requests Hon’ble Commission to approve the computation of interest on security deposit for FY 2020-21

4.16. Interest on Working Capital

South Bihar Power Distribution Company Limited 83

4.16.1. The Petitioner has estimated the amount of interest on Working capital for FY 2019-20 as per Regulation 26 of Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018. “The Distribution Licensee shall be allowed interest on estimated level of working capital for the financial year, computed as follows: a) Two months equivalent of expected revenue b) Maintenance spares@40% of R&M expenses for one month: Less: (i) Power purchase cost, transmission charges and load dispatch charges of one month (ii) Depreciation, return on equity and contribution to contingency reserves equivalent to two months (iii) Security deposits from consumers, if any

Provided that the interest on working capital shall be on normative basis and rate of interest shall be equal to the State Bank one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as of the date on which petition for determination of tariff is filed plus 150 basis points. The rate of interest for the purpose of Truing-up shall be the weighted average MCLR of the concern Financial Year plus 150 basis points. Provided further that interest shall be allowed on consumer security deposits and security deposits from Distribution System users held during the year at the Bank Rate as of the date on which petition for determination is filed. The interest allowed shall be subject to true up at weighted average Bank Rate of the concern Financial Year. Provided also that if the State Government is providing resource gap grant and/or direct subsidy to consumers, the working capital shall be reduced by two months equivalent of that amount. 4.16.2. The Petitioner has not considered any grant against disallowed power purchase for low distribution loss, since the support in terms of OFR by State Govt. is being infused in terms of equity and not in terms of grant. 4.16.3. The interest on working capital is calculated at the rate of 9.25% which is SBI one year MCLR rate plus 150 points 4.16.4. In addition, it is pertinent to note that the Petitioner has taken short term loans from REC and PFC for payment of Power Purchase liability. In addition to it there are other short term loans like bank overdraft etc. on which Petitioner is bearing huge interest burden. 4.16.5. In the light of the above facts the Petitioner would submit that it is incurring the interest on working capital at a higher level than as calculated as per normative requirement.

Table 69: Interest on working capital for APR (in INR Crore) Approved for Projected for FY Sl. No. Particulars FY 2020-21 2020-21 (RE) Two months equivalent expected 1 1546.84 1,584.07 revenue Maintenance spares @40% of R&M 2 7.28 6.56 expenses for one month 3 Sub-total (1+2+3) 1554.12 1,590.63

South Bihar Power Distribution Company Limited 84

Approved for Projected for FY Sl. No. Particulars FY 2020-21 2020-21 (RE) 4 Less: Power purchase cost, transmission (i) charges and load dispatch charges 665.5 670.37 of one month Depreciation, return on equity and (ii) 88.1 79.78 contribution to contingency reserve Grant received from the State Govt. (iii) for power purchase and other O&M expenses (iv) Security Deposit from consumers 457.76 630.52 5 Sub-total (5(i)+5(ii)+5(iii)+5(iv)) 1211.36 1,380.92 Net working capital requirement 6 342.76 209.96 (4-6) 7 Rate of interest % 9.55% 9.25% 8 Interest on working capital (7*8) 32.73 19.42

4.16.6. The Petitioner requests Hon’ble Commission to approve the interest on working capital at INR 19.42 Crore for FY 2020-21.

4.17. Non-Tariff Income

4.17.1. Non-Tariff income includes bank charges, interest on investments and bank balances, miscellaneous recoveries etc. The Petitioner has projected non-tariff income for FY 2020- 21 on the basis of 20% escalation on the non-tariff income in FY 2019-20 (except miscellaneous recoveries of Rs.120.23 Crore which has been reduced to 85% in FY 2020- 21). Further, the deemed rebate on power purchase is considered as 1% of the total power purchase cost. The petitioner has also not considered Meter Rent/ Service Line Rental in FY 2020-21, on account of abolishment of meter rent from FY 2020-21 and receipt from BG invocation as it is considered as a onetime expense. Therefore, the effective rate in increase turns out to be 18%. The Petitioner has then deducted the cost of funding the DPS from the total Non-Tariff Income and calculated the net Non-tariff income as follows:

Table 70: Net-Non-tariff income for APR (in INR Crore)

Approved Projected Particulars for FY for FY 2020- 2020-21 21 (RE) Base Non-tariff Income (excluding meter rent and receipt from BG 356.02 invocation) Rate of Increase 18% Increase in Non-tariff Income 65.40 Sub-total 421.42 Rebate @ 1% on power purchase Additional income due to release of new

connections Interest on funding of DPS 69.19 Total non-tariff income 446.04 352.23

South Bihar Power Distribution Company Limited 85

4.17.2. The Petitioner requests Hon’ble Commission to approve net non-tariff income for FY 2020- 21 amounting to INR 352.23 Crore.

4.18. Interest on Normative Debt

4.18.1. The Petitioner has calculated normative interest on loans on 70% of the addition in GFA in FY 2020-21. 4.18.2. The addition to GFA as per the estimations is INR 948 Crore which is 70% of the addition during the year excluding contribution from grant. 4.18.3. The interest on normative debt is calculated at the rate of 10.04 % i.e. weighted average rate on project Loans. The detailed calculation of the weighted average rate of interest is provided in the table below: -

Table 71: Computation of weighted average rate of interest on project loans (in INR Crore)

Repaym Amount Addition Purpose Opening Rate of ent Closing Average of Particulars during of loan balance Interest during balance Balance interest the year the year paid

REC (RGGVY) Term Project 136.88 10.33% 18.90 11.99 143.79 140.34 14.61 Loan REC (R-APDRP) Term Project 349.26 10.40% - 34.93 314.33 331.80 36.32 Loan PFC (R-APDRP) Term Project 260.11 9.00% 100.71 - 360.82 310.47 22.53 Loan REC (IPDS) Term Loan Project 100.00 10.19% 242.00 - 342.00 221.00 13.67 REC (DDUGJY) Term Project 600.02 10.19% 100.00 - 700.02 650.02 44.97 Loan State Govt.-Non-Plan Project 58.58 10.50% 35.85 - 94.43 76.51 5.78 Loan Support BSPHCL (ADB) Loan Project 6.28 10.50% - - 6.28 6.28 0.64 Total 1511.13 497.46 46.92 1961.67 1736.40 138.52 Weighted average rate of interest 10.04%

Table 72:Interest on Normative debt (in INR Crore)

Approved for FY Projected for FY Particulars 2020-21 2020-21 (RE) Opening loan balance 2588.15 2500 Addition during the year 336.02 336 Normative Repayment 204.77 223 Closing Loan 2719.40 2,613 Average Loan 2653.77 2,557 Interest Rate 10.04% 10.04% Interest Charge 266.39 256.77

South Bihar Power Distribution Company Limited 86

4.18.4. Therefore, the Petitioner requests the Hon’ble Commission to approve interest on normative debt at INR 256.77 Crore.

4.19. Other Finance Charges

4.19.1. Other Finance charges includes power factor rebate, Interest to suppliers/ contractors, rebate to consumers etc. The finance charges for FY 2020-21 is calculated by escalating the Finance charges for FY 2019-20 by 10%. 4.19.2. The below table demonstrates the Finance charges estimated for FY 2020-21:-

Table 73: Other finance charges (in INR Crore)

Particulars Approved for Projected for FY FY 2020-21 2020-21 (RE) Other Finance Charges for the base 58.91 57.66 year Escalation Considered 10.00% 10% Escalated Amount 5.89 5.77 Finance Charges 64.79 63.43

4.19.3. Therefore, the Petitioner requests the Hon’ble Commission to approve the finance charges of INR 63.43 Crore for FY 2020-21.

4.20. Revenue from Sale of Power at Existing Tariff

4.20.1. Following is the category wise revenue based on the existing tariff for FY 2020-21 based on existing tariff:

Table 74: Revenue from sales of power at existing tariff for FY 2020-21 (in INR Crore)

Total Revenue Category of Consumers Sales (MU) (Rs. Cr) Domestic 7,585.91 5,061.69 Kutir Jyoti 1,219.16 756.13 DS I Rural 3,218.01 2,083.19 DS II Demand Based 3,148.66 2,222.32 DS III 0.08 0.06 Non_Domestic Service 1,213.63 1,040.30 NDS I - Metered Now Demand 217.48 309.55 Based NDS II - Demand Based 904.08 822.83 Contract Demand <0.5 kW 5.34 4.18 Contract Demand >0.5 kW 898.74 818.65 Street Light Services 71.53 71.42 SS Metered 14.71 11.28 SS Unmetered 56.82 60.14 Irrigation & Allied Services 599.79 734.69 IAS I 520.82 659.84

South Bihar Power Distribution Company Limited 87

Total Revenue Category of Consumers Sales (MU) (Rs. Cr) IAS II 78.98 74.85 Public Service Connections 139.31 120.76 Public Water Works 87.36 83.91 Har Ghar Nal 51.95 36.86 Low Tension Industrial Services 455.73 396.16 LTIS I (0-19 kW) 341.97 287.07 LTIS II (>19 kW - 74 kW) 113.76 109.09 High Tension 2,057.51 1,556.83 HTS I - 11 kV 636.65 552.50 HTS II - 33 kV 460.91 402.56 HTS III -132 kV 226.62 166.43 HTS IV - 220 kV - - HTSS 733.34 435.34 Railway Traction Services 48.39 RTS 48.39 Nepal Nepal Total 12,123.42 9,030.26

4.20.2. It is to be noted that the DISCOM is estimated to receive an amount of Rs. 814 Crore as OFR funding infused by GoB in terms of equity contribution towards meeting its shortfall in achieving the AT&C loss target. The Petitioner has considered such amount as income while arriving at the Revenue Gap for calculation of Annual Revenue Requirement for FY 2020-21. 4.20.3. It is submitted by Petitioner that above computed revenue is based on the approved tariffs and revised projections of sales, consumers and load for respective years and requests Hon’ble Commission to approve the same.

4.21. Net ARR and Revenue Gap for FY 2020-21

4.21.1. The Gross ARR for the distribution company consist of the power purchase costs, interest and finance costs, O&M costs, depreciation and interest on working capital. 4.21.2. The below tables demonstrate the net gap for FY 2020-21 taking into account all the expenses estimated for the entire year reduced by revenue from sale of power and Other income. 4.21.3. Following is the total revenue requirement for FY 2020-21 against allocation from total approved revenue requirement by the Hon’ble commission for FY 2020-21.

Table 75: Revenue requirement for FY 2020-21 (in INR Crore)

Approved in ARR SBPDCL FY (2020-21) (RE) of FY 2020-21 Purchase of power 7135.6 7,378.20 PGCIL & Other transmission charges 628.99 595.04 BSPTCL & BGCL transmission charges 705.79 and SLDC charges 722.88

South Bihar Power Distribution Company Limited 88

Approved in ARR SBPDCL FY (2020-21) (RE) of FY 2020-21 RE purchases 24.72 Deemed rebate on Power Purchase (@1%) Treatment of Surplus Power 634.61 O & M Expenses (A+B+C+D) 841.28 965.75 Employee expenses 475.25 598.86 R&M expenses 209.16 196.90 A&G expenses 136.71 144.99 Holding company expenses 20.16 25.00 Depreciation 204.77 222.75 Interest on loan 266.39 320.20 Other finance charges 64.79 Return on equity 238.25 255.93 Interest on SD 35 28.15 Prior Period Expense - Deposit for RPO obligation - Contingency Reserve - Interest on working capital 16.23 19.42 Total Revenue requirement (1 to 12) 10178.88 9,856.64 Less:: Non-tariff income 446.04 352.23 Net Revenue requirement (13-14) 9732.84 9,504.41 Revenue from Existing tariff 9891.35 9,030.26 Subsidy 814.22

Gross Gap / (Surplus) (15-16-17) Add: Trued up Gap/(Surplus) 112.49 Net Gap / (Surplus) for FY 2018-19 (18+19) (46.02) (340.07)

4.21.4. The Petitioner has not treated the surplus/gap of FY 2018-19 in FY 2020-21 during the APR. The same will be considered by the Petitioner at the time of truing up for FY 2020-21. In the light of the above explanation the Petitioner would request the Hon’ble Commission to approve the figure of INR 339.71 Crore towards net surplus in FY 2020-21.

South Bihar Power Distribution Company Limited 89

5. Annual Revenue Requirement (ARR) for FY 2021-22 5.1. Preamble

5.1.1. The Petitioner has provided this section for Annual Revenue Requirement for the FY 2021- 22. Rational estimation of category-wise energy sales for the control period is essential to arrive at the optimum quantum of power to be purchased and the likely revenue by sale of energy. Likewise, it is essential that the cost components driving ARR should be projected in an optimal manner. The below sections deal with the projections of ARR components for FY 2021-22.

5.2. Historical Assessment of Number of Consumers and Sales

5.2.1. Rational estimation of category-wise energy sales for the ensuing year is essential to arrive at the optimum quantum of power to be purchased, and the likely revenue from sale of energy. This section examines in detail the consumer category-wise energy sales projected for the distribution company in the Petition for the period of FY 2021-22 for approval of ARR.

5.2.2. The Petitioner serves ~58 lakh consumers (as on 31st March 2020). The electricity consumers in the DISCOM have increased by approximately 7% over the last year.. The historical trend in the number of consumers serviced by the DISCOM as per the data available in its audited books of accounts, has been captured in the following table.

Table 76: Category wise number of consumer for past few years

Consumer Category FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Domestic 2,508,690 3,185,863 3,765,044 4,782,414 5,075,789 Kutir Jyoti 528,381 831,932 1,053,164 1,422,169 1,483,858 DS-I (Rural- Connected Load 1,012,042 1,276,524 1,501,556 2,055,959 2,274,063 Based) DS-II (Urban- Demand Based) 968,267 1,077,407 1,210,324 1,304,286 1,317,764 DS III (Optional- Demand Based) 104 Non-Domestic 220,581 262,265 304,074 357,715 406,025 NDS-I (Rural- Connected Load 28,305 39,738 49,561 63,025 94,531 Based) NDS-II (Demand Based) 192,276 222,527 254,513 294,690 311,494 Irrigation & Agriculture Services 234,788 (IAS) 63,869 144,954 160,773 196,529 IAS-I (Pvt Tubewell- Connected 231,154 Load Based) 61,824 141,288 156,959 192,958 IAS-II (State Tubewell- Connected 3,634 Load Based - Metered) 2,045 3,666 3,814 3,571 Low Tension Industrial Supply (LTIS- Demand Based) 15,233 28,828 50,756 58,297 Public Service Connections 900 1,391 1,806 2,461 5,849 Public Water Works (PWW- 900 1,391 1,806 2,461 2,626 Demand Based) Har Ghar Nal 3,223

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Consumer Category FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Street Light Services (SS- 1,376 Demand Based) 467 700 907 1,230 High Tension Supply 1,052 1,360 1,597 1,813 1,929 HTS-I (11 kV) 955 1,250 1,475 1,684 1,792 HTS-II (33 kV) 80 94 104 112 119 HTS-III (132 kV) 3 3 5 4 4 HTS-IV (220 kV) HTSS (33 / 11 kV) 14 13 13 13 14 RTS (132 kV) 15 15 15 3 1 Grand Total 2,810,807 3,625,376 4,284,972 5,400,462 5,789,783

5.2.3. This increase in the number of consumers leads to further increase in energy sales under various categories of consumers. Following table covers the energy sale trend of the Petitioner in the past few years –

Table 77: Category wise sales for the past few years (in MU)

Consumer Category FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Domestic 2,607.69 3,556.56 4,150.33 5,993.69 7,141.73 Kutir Jyoti 200.56 325.04 486.90 1,155.91 1,159.78 DS-I (Rural- Connected Load 1,415.26 708.02 982.17 2,280.43 2,973.50 Based) DS-II (Urban- Demand Based) 1,698.84 2,249.21 2,248.17 2,557.35 3,00840 DS III (Optional- Demand Based) 0.27 0.14 0.04 Non-Domestic 711.58 911.65 1,051.68 992.35 1,089.61 NDS-I (Rural- Connected Load 20.31 29.71 44.38 69.37 243.25 Based) NDS-II (Demand Based) 691.27 881.94 1,007.30 922.98 846.36 Irrigation & Agriculture Services 224.36 233.77 317.06 574.17 814.58 (IAS) IAS-I (Pvt Tubewell- Connected 149.32 168.38 216.46 463.22 735.80 Load Based) IAS-II (State Tubewell- Connected 110.95 78.79 Load Based - Metered) 75.04 65.39 100.60 Low Tension Industrial Supply 339.52 427.04 (LTIS- Demand Based) 239.99 318.66 350.94 Public Service Connections 45.62 49.63 83.65 78.08 94.42 Public Water Works (PWW- 79.37 Demand Based) 45.62 49.63 83.65 78.08 Har Ghar Nal 15.05 Street Light Services (SS- Demand Based) 19.90 15.84 37.39 35.26 71.55 High Tension Supply 1,378.38 1,580.69 1,762.58 1,986.91 2085.96 HTS-I (11 kV) 448.96 507.28 566.73 628.98 679.72 HTS-II (33 kV) 253.35 285.74 348.31 421.33 425.71 HTS-III (132 kV) 118.10 129.23 129.79 163.28 171.72 HTS-IV (220 kV) HTSS 557.97 658.44 717.75 773.32 808.81 RTS (132 kV) 579.95 563.61 578.65 307.29 102.3 DF 279.04 Grand Total 5,807.47 7,230.41 8,332.28 10,586.31 11,826.96

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5.3. Projected Sales (MU), Number of Consumers and Connected Load for 2021-22

5.3.1. The projection of energy sales for the control period is based on the UDAY and the Saubhagya Schemes in line with the large scale initiatives being taken by Central Government and the State Government with an aim of overall development of the power sector in the state. The objective of the above mentioned initiatives is to make power available to all households, industry, commercial businesses, public needs, any other electricity consuming entity and adequate power to agriculture farm holdings. 5.3.2. The initiatives of DISCOM are expected to mainly impact the consumers who would fall under the IAS-I and Public Water Works categories, since a lot of emphasis is on connecting agricultural consumers and the growth rate projected under these categories is above the normal CAGR growth as large number of new connections to be released in the ensuing years. 5.3.3. Segregation of the agricultural feeders will have a positive effect on the overall system stability and will improve the hours of power supply resulting in an increase in the units consumed. Hence an above normal CAGR is assumed in the agricultural category. 5.3.4. The initiatives taken by the DISCOM in providing connections under the Har Ghar Nal is already reflecting in the sales of the Petitioner and is further expected to increase the energy sales. 5.3.5. However, with release of huge number of connections to the rural households and left over urban households in recent years under various State and Central Govt. schemes the scope of adding new consumers is getting minimized. Therefore, less number of consumers are expected to be added over next control period in comparison to the previous years. Taking the same into account, the growth in number of consumers for various categories have been considered at a lower rate as compared to previous years. The number of consumers projected to be added over the next year is provided below:

Table 78: Category-wise no. of consumers projected for 2021-22 Particulars Growth Rate (YoY) FY 2019- FY 2020- FY 2021- Category of Consumers FY 21 FY 22 20 (Actual) 21 (APR) 22 (ARR) Domestic 5,075,789 5,283,517 5,556,377 4.09% 5.16% Kutir Jyoti 1,483,858 1,544,384 1,606,159 4.08% 4.00% DS I Rural 2,274,063 2,412,801 2,557,569 6.10% 6.00% DS II Demand Based 1,317,764 1,326,157 1,392,465 0.64% 5.00% DS III 104 174 183 67.71% 5.00% Non_Domestic Service 406,025 446,230 482,888 9.90% 8.21% NDS I - Metered Now Demand Based 94,531 116,786 123,793 23.54% 6.00% NDS II - Demand Based 311,494 329,444 365,830 5.76% 9.00% Contract Demand <0.5 kW 9,112 8,127 8,858 -10.81% 9.00%

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Particulars Growth Rate (YoY) FY 2019- FY 2020- FY 2021- Category of Consumers FY 21 FY 22 20 (Actual) 21 (APR) 22 (ARR) Contract Demand >0.5 kW 302,382 321,318 356,972 6.26% 11.10% Street Light Services 1,376 1,445 1,556 5.03% 7.69% SS Metered 752 852 1,023 13.32% 20.00% SS Unmetered 624 593 534 -4.95% -10.00% Irrigation & Allied Services 234,788 250,185 257,309 6.56% 2.85% IAS I 231,154 244,900 251,495 5.95% 2.69% IAS II 3,634 5,286 5,814 45.45% 10.00% Public Service Connections 5,849 13,080 18,258 123.63% 39.59% Public Water Works 2,626 2,780 2,807 5.85% 1.00% Har Ghar Nal 3,223 10,300 15,451 219.59% 50.00% Low Tension Industrial Services 64,026 56,159 60,537 -12.29% 7.80% LTIS I (0-19 kW) 59,574 52,342 56,529 -12.14% 8.00% LTIS II (>19 kW - 74 kW) 4,452 3,817 4,008 -14.27% 5.00% High Tension 1,929 1,856 1,932 -3.77% 4.06% HTS I - 11 kV 1,792 1,707 1,775 -4.75% 4.00% HTS II - 33 kV 119 131 137 9.99% 5.00% HTS III -132 kV 4 5 5 28.58% 5.00% HTS IV - 220 kV - - - HTSS 14 13 14 -4.48% 2.00% Railway Traction Services 1 - - -100.00% Nepal - - - Total 5,789,783 6,052,472 6,378,856 4.54% 5.39%

5.3.6. The Petitioner has also been making other efforts to enhance the overall power availability for the consumers of the State. This includes contracting additional power from various sources across the State and the country and enhancing the State’s power transmission capacity for bringing it to the distribution network. 5.3.7. The commissioning of the transmission capacity shall also lead to a higher energy supply to urban areas of the DISCOMs. The category wise projections of energy sales for FY 2021-22, has been done taking into account the above factors.

Table 79: Category-wise sales projected for 2021-22

Growth Rate (YoY)

FY 2019-20 FY 2020- FY 2021- Category of Consumers FY 21 FY 22 (Actual) 21 (APR) 22 (ARR) Domestic 7,141.73 7,585.91 8,198.34 6.22% 8.07% Kutir Jyoti 1,159.78 1,219.16 1,280.61 5.12% 5.04% DS I Rural 2,973.50 3,218.01 3,479.31 8.22% 8.12% DS II Demand Based 3,008.40 3,148.66 3,438.34 4.66% 9.20% DS III 0.04 0.08 0.08 72.74% 8.15% Non_Domestic Service 1,089.61 1,213.62 1,333.27 11.38% 9.86% NDS I - Metered Now Demand 243.25 309.53 337.96 27.25% 9.18% Based NDS II - Demand Based 846.36 904.08 995.31 6.82% 10.09%

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Growth Rate (YoY)

FY 2019-20 FY 2020- FY 2021- Category of Consumers FY 21 FY 22 (Actual) 21 (APR) 22 (ARR) Contract Demand <0.5 kW 5.49 5.34 5.88 -2.66% 10.09% Contract Demand >0.5 kW 840.87 898.74 989.42 6.88% 10.09% Street Light Services 71.55 71.53 70.19 -0.03% -1.88% SS Metered 12.37 14.71 18.54 18.98% 26.00% SS Unmetered 59.19 56.82 51.65 -4.00% -9.10% Irrigation & Allied Services 814.58 599.79 851.78 -26.37% 42.01% IAS I 735.80 520.82 718.06 -29.22% 37.87% IAS II 78.79 78.98 133.72 0.24% 69.31% Public Service Connections 94.42 139.31 174.36 47.55% 25.16% Public Water Works 79.37 87.36 91.77 10.08% 5.04% Har Ghar Nal 15.05 51.95 82.59 245.16% 59.00% Low Tension Industrial Services 427.04 455.73 494.86 6.72% 8.59% LTIS I (0-19 kW) 295.82 341.97 373.02 15.60% 9.08% LTIS II (>19 kW - 74 kW) 131.22 113.76 121.84 -13.31% 7.10% High Tension 2,085.96 2,057.51 2,305.27 -1.36% 12.04% HTS I - 11 kV 679.72 636.65 721.24 -6.34% 13.29% HTS II - 33 kV 425.71 460.91 511.53 8.27% 10.98% HTS III -132 kV 171.72 226.62 236.51 31.97% 4.36% HTS IV - 220 kV - - - HTSS 808.81 733.34 836.00 -9.33% 14.00% Railway Traction Services 102.03 - - -100.00% DF - - - Total 11826.92 12123.41 13428.07 2.51% 10.76%

5.3.8. The general approach followed for projection of all categories include:- i. The consumer numbers for FY 2020-21 are projected considering the provisional figures as available for September 2020 and thereafter an appropriate growth rate across the categories have been considered, also considering the impacts of COVID-19, resulting in total growth of 4.54% by the end of FY 2020-21 over the previous year. Thereafter, the overall growth rate has been assumed to be around 5.39% for FY 2021-22. ii. Successful implementation of the Saubhagya scheme ensured that all the willing households are connected. Due to the rise in consumerism among consumers in the country, there will be a rise in the consumption of electricity in the coming years. Gradually the customers currently segregated under the Kutir Jyoti category move on to higher categories. iii. For projecting the connected load, an average connected load per consumer has been taken as per the actual data of the past few years. This has then been then multiplied by projected number of consumers to arrive at the connected Load. iv. The energy sale has been projected by considering the average consumption per consumer per month and then multiplying the same to the projected number of

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consumers. The impact of COVID-19 on sales of certain categories such as HT in the first half of FY 2021 has also been considered while projecting the overall sales for FY 2021. This has further been rationalized for FY 2021-22 by considering the average consumption per consumer per month on annual basis. v. The number of years taken for estimating the CAGR however varies since the trend in certain categories is impacted by multiple other factors and taking a uniform period for calculating the CAGR skews the outcome. vi. In addition to the CAGR, it has also been ensured that other factors impacting demand, such as growth in the no. of consumers (due to schemes including Chief Minister scheme and Saubhagya scheme), enhanced power procurement, strengthening of distribution network for enhancing quality of supply, energy efficiency and DSM measures etc., have been adequately incorporated to reflect a realistic demand scenario.

The following paragraphs capture highlights of the approach and assumptions used for projecting the specific category wise number of consumers, connected load and energy sales for the ensuing year.

1. The growth rate in KJY consumers was 4% in FY 2019-20 the Petitioner estimates that in FY 2020-21 the growth rate in consumers of KJ will be to similar to that of FY 20, as the objective of Saubhagya scheme has already been achieved and almost all the households are connected to the grid. Hence a nominal growth rate of 4% is considered in FY 2020-21. The Petitioner has considered 5% growth in sales for FY 2020-21 as there was a phenomenal growth of 137% in this category for FY 2018-19 which dipped down to 2% in FY 2019-20. Therefore, considering the fact that electrification spread across, the growth pattern will reduce stabilize till FY 2021-22, the Petitioner requests the Hon’ble Commission to approve the rate of 3%. 2. The growth rate of DS-I consumers was 11% in FY 2019-20, since the objective of Saubhagya scheme has already been achieved and almost all the households are connected to the grid, the nominal growth rate of 6% is considered for projecting consumers for FY 2020-21. There was an increase of 30% in the monthly consumption per consumer in FY 2019-20. The fact that almost all the domestic consumers are connected to the grid, hence there would be constant growth in future. The Petitioner therefore have estimated 2% increase in average consumption per consumer in FY 2020-21 and FY 2021-22. Hence the growth rate in overall sales for DS-I is considered as 4% in FY 2021-22. 3. There was a growth of 1% in the DS-II category of consumers for FY 2019-20. Considering the minimum growth rate, the Petitioner has considered the growth rate of 2% for projecting consumers under this category. In Energy sales, a growth of 6% is assumed in this category for FY 2021-22. In FY 2019-20 growth rate of 18% is observed in this category. The

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petitioner did not foresee major growth in this category, hence 6%of growth is requested to be adopted by the Hon’ble Commission in FY 2020-21. It has also been observed that the consumer demand is always near the peak demand limit set for the category. Number of Consumers FY 2021-22 KJY category 1,606,159 DS-I Category 2,557,569 DS-II Category 1,392,465 DS-III Category 183 Total 5,556,377 Energy Sales FY 2021-22 (in MUs) KJY category 1,280.61 DS-I Category 3,479.31 DS-II Category 3,438.34 DS-III Category 0.08 Total 8,198.34 Connected Load FY 2021-22 (kW) KJY category 221,889 DS-I Category 2,768,101 DS-II Category 4,084,197 DS-III Category 315 Total 7,074,502

4. The Petitioner submits that it has estimated nominal growth rate of 6% in NDS-I category while projecting number of consumers for FY 2021-22. Though this category depicts phenomenal growth rates (24% in FY 21), still the Petitioner submits that owing to huge growth in previous years the consumers will grow at a normal pace. The sales projections for NDS-I category is done in a way to rationalize the sales pattern for the category considering that the average consumption per consumer in previous years. The growth in average consumption per consumer has been varying and hence a growth rate of 7% is assumed for FY 2021-22 for this category. . Consumers FY 2020-21 NDS-I 123,793 Energy Sales FY 2020-21 (in MUs) NDS-I 337.96 Connected Load FY 2020-21 (kW) NDS-I 181,034

5. The half yearly growth rate in the number of consumers in NDS-II category i.e., H1 of FY 2020- 21 over FY 2019-20, is 4% despite the lockdown due to COVID-19. The Petitioner understands that this trend cannot be trusted on standalone data. Hence a growth rate of 6% is assumed for FY 2020-21 in NDS-II category and a nominal growth rate of 9% is assumed for FY 2021- 22.. Consumers FY 2021-22 NDS-II 365,830 Energy Sales FY 2020-21 (in MUs) NDS-II 995.31

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Connected Load FY 2020-21 (kW) NDS-II 1,286,991

6. As per the third agricultural roadmap, Bihar has started work to set up dedicated feeders to provide electricity for agriculture. A total of 296 power substations will be set up to provide electricity to 1,312 dedicated feeders. Hence a modest growth of 3% is estimated for FY 2021- 22 in IAS-I category. The specific consumption has decreased hugely during the lockdown. Also, with the agenda of 100% metering in the state, a decrease in unmetered category of IAS- I has been considered for projection. This will also ensure better billing of customers and a reduced AT&C loss. The overall growth in sales is assumed to decrease by 1% considering the above factors. Consumers FY 2021-22 IAS-I 251,495 Energy Sales FY 2020-21 (in MUs) IAS-I 718.06 Connected Load FY 2020-21 (kW) IAS-I 594,575

7. The petitioner hereby submits that the number of consumer growth for FY 2021-22 is 5% considering that the growth rate for FY 2020-21 as 45% for IAS-II category. There was a significant growth observed in monthly consumption per customer and therefore overall growth rate of 60% is considered for FY 2021-22 to estimated sales under IAS-II category Consumers FY 2021-22 IAS-II 5814 Energy Sales FY 2021-22 (in MUs) IAS-II 133.72 Connected Load FY 2021-22 (kW) IAS-II 104902

8. The petitioner hereby submits that the consumer growth for LTIS-I category in FY 2021-22 is assumed to be a nominal as 8% This is due to a fluctuant growth rate shown over the years in the consumption pattern of the IAS-II category. The average consumption per consumer has decreased over the years but has increased by 24% in FY 20. Hence the petitioner has considered a nominal growth rate of 6% for projection of consumers. The average consumption per consumer for FY 2018-19 was -7%. Hence the petitioner has considered the growth rate of 8% for projection of consumers. Consumers FY 2020-21 LTIS-I 56,529 Energy Sales FY 2020-21 (in MUs) LTIS-I 373.03 Connected Load FY 2020-21 (kW) LTIS-I 483404

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9. The petitioner hereby submits that the consumer growth for LTIS-II in FY 2021-22 is assumed to be 5%. There has been a dip in the first six months of FY 2021, however, it is believed not to impact much in FY 2021-22. And assuming that there will be modest growth in the industrial sector as per Ministry of Statistics and Programme Implementation. It is further assumed that the increase in consumption will directly be reflected through addition of consumers and an increase of 5% is considered to project the sales of FY 2021-22 Consumers FY 2021-22 LTIS-II 4008 Energy Sales FY 2021-22 (in MUs) LTIS-II 121.84 Connected Load FY 2021-22 (kW) LTIS-II 192394

10. The Petitioner has estimated a growth rate of 1% in number of consumers in FY 2021-22 in PWW category. In Har Ghar Nal Yojana the Petitioner submits that there will be exceptional high growth in coming years. A growth rate of 220% is expected in 2020-21. However, since it is expected to complete most of the electrification process in FY 2020-21, a growth rate of 50% is assumed in FY 2021-22. The Petitioner has estimated the growth rate of 1% in PWW for FY 2021-22 sales. The growth rate in sales for Har Ghar Nal Yojana is estimated as 50% considering rapid expansion of scheme in coming years. Consumers FY 2021-22 PWW 2,807 Har Ghar Nal 15,451 Total 18,258 Energy Sales FY 2021-22 (in MUs) PWW 91.77 Har Ghar Nal 82.59 Total 174.36 Connected Load (kW) FY 2021-22 (kW) PWW 36,487 Har Ghar Nal 56,629 Total 93,116

11. The petitioner hereby submits that the consumer growth for FY 2020-21 and FY 2021-22 is assumed to be 5% and 5% respectively for Street Light Services, as the Growth in H1 of FY 2019-20 over FY 2018 was 6% and the yearly growth rate from H1 of 2019-20 over H1 of 2018- 19 was 11%. The monthly consumption per customer was 20% for FY 2019-20 but with the conversion of unmetered category to metered category, it is further expected that the unmetered consumption will decrease whereas the metered consumption will show a significant increase. The overall impact as per the assumed figures show an expected decrease in FY 2020-21 and FY 2021-22 respectively as the growth in the number of consumers is 5% each for FY 2020-21 and FY 2021-22. The overall sales growth for FY 2019- 20 was 102% which has hugely dipped in the first half of FY 2020-21. Hence the Petitioner has

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estimated sales growth rate as (-5%) in FY 2021-22. Consumers FY 2021-22 Street Light Services 1,556 Energy Sales FY 2021-22 (in MUs) Street Light Services 70.19 Connected Load FY 2021-22 (kW) Street Light Services 20,874

12. The petitioner hereby submits that it does not estimate huge growth in number of consumers in FY 2021-22 considering decreasing trends in past and as per the data released by Ministry of Statistics and Programme Implementation. Category Number of consumers HT-I 1,775 HT-II 137 HT-III 5 HTSS 14 Total 1932 Category Sales (MU) HT-1 721.24 HT-II 511.53 HT-III 236.51 HTSS 836 Total 2,305.27 Category Connected Load (kW) HT-1 377,116 HT-II 262,745 HT-III 33,753 HTSS 136,909 Total 8,10,523

13. The Petitioner has considered no projection for consumers for RTS category, load and sales or RTS category for FY 2021-22 since all the consumers have moved to Open access.

5.4. Distribution Loss

5.4.1. Emphasizing on the commitment to reform themselves by achieving a financial and operational turnaround, the Government of Bihar and the two Distribution Companies have signed a tripartite Memorandum of Understanding (MoU) of Ujwal DISCOM Assurance Yojana (UDAY) with the Ministry of Power, Government of India on 22nd February, 2016.

5.4.2. The UDAY MoU and the corresponding action plan, which are targeted to specifically address operational inefficiency as well, set out a clear performance improvement roadmap, setting specific key performance targets. This would include taking multiple initiatives towards the goals:

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5.4.3. Increasing Billing Efficiency: a. Automatic Meter Reading of Industrial Consumers b. Metering including prepaid/ Smart Meter c. Web based Spot Billing through Mobile d. Image of Meter Reading on Bill e. Consumer Indexing & GIS Mapping f. Frequent raids and inspection of consumer premises to prevent power theft. g. 100% feeder metering h. 100% DT metering in urban areas. i. Energy Accounting and Audit 5.4.4. Increasing Collection Efficiency a. Appointment of Rural Revenue Franchisee for door to door collection from rural consumers b. Uploading of all Electricity bill on web for direct download and on-line payment c. Multiple options of payment such as on-line through Billdesk/PayU, HDFC Bank, ATP machine, Paytm, Branches of Gramin Bank, Vasudha Kendra, e-wallet, Block Collection Counter, Post offices, Mobile App, Mobile Van, etc. d. Disconnection drive in case of non-payment e. Filing Certificate Cases and their disposal promptly f. Customer Facilitation Centre for rectification of bill/ consumer complain g. Monthly Bill rectification Camp at all Sub-division/Division

5.4.5. Other measures a. Strengthening and capacity addition of electricity distribution infrastructure b. Physical feeder segregation c. Feeder improvement program for network strengthening d. DSM and energy efficiency measures e. Name and shame campaign to control power theft f. Consumer awareness programs g. Centralized Customer Call Centre to enhance response time and overall quality of service

5.4.6. The Petitioner in a letter to Ministry of Power in July 2019, has expressed their inability to achieve the losses of 15% as agreed under UDAY. The extract of the said letter is as follows:

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It is pertinent to mention that while finalizing the AT&C loss level targets under UDAY, all DISCOMs had been assigned the universal target of 15%, irrespective of their consumer mix and HT to LT ratio, which plays a key contributing factor in a DISCOMs ability to recover revenues and for ensuring low distribution losses. It is also paramount to point out that although the consumer mix has a direct impact on the AT&C losses of the DISCOM, and the DISCOM has no control on this factor.

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5.4.7. Further, in a letter to MoP, GoI on the roadmap for loss reduction, the Petitioner has proposed a revised trajectory for reduction in AT&C loss till FY 2022-23.The following trajectory of AT&C loss has been proposed by the Petitioner.

Sr. Particulars Unit of SBPDCL No Measurement 1 AT&C Loss a FY 21 (Projected) 39 b FY 22 (Projected) % 34 c FY 23 (Projected) 29 d FY 24 (Projected) 23

5.4.8. In light of the various measures being undertaken by the State and the existing levels of T&D losses, the Petitioner has targeted a reduction in AT&C losses and achieve 34% AT&C loss by FY 2021-22 with the Distribution loss being 22% and the collection efficiency being 85%.

Table 80: AT&C loss projection (in %)

Particulars FY 2021-22 Distribution loss 22% Collection Efficiency 85% AT&C Loss 34%

5.4.9. The Regulation 18 of BERC MYT (Distribution) Regulation, 2018 also suggests that the Hon’ble Commission has the authority to revise the Distribution loss baseline in the state based on actual situation in the state.

“18.2 Distribution Loss

Based on the assessment of metered and un-metered sales as per Regulations 16 and 17 of these regulations, the Commission shall update existing baseline of distribution losses.”

5.4.10. Further, in FY 2017-18 and FY 2018-19, a large number of rural consumers have been added to the DISCOM’s consumer database. Due to this addition in the number of consumers at a Low Tension level in rural areas, where the length of feeders are generally longer, the technical losses are expected to go up. Therefore, for the DISCOM as a whole, it would not be possible to drastically reduce losses in FY 2020-21. 5.4.11. It is submitted to the Hon’ble Commission that although the DISCOMs are making the best possible efforts to reduce the losses with the introduction of feeder separation schemes, spot billing etc. and various other IT initiatives, the reduction in losses would still occur in a phased manner.

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5.4.12. Accordingly, it is prayed to the Hon’ble Commission to allow the distribution losses for FY 2020-21 at 22% and an AT&C loss of 34% for FY 2021-22.

5.4.13. Initiatives taken by the Company to contain Losses:

The DISCOMs have been initiated customized strategic techno-social solutions to torpedo the “herd culture”. Demand analysis, market scanning for available befitting technology, customer communication for smooth implementation and create social backbone for sustainable results are key areas, where the DISCOM tries for “symmetry breaking” solutions.

A. Technical Solutions: a. SAP Implementation: With latest upgradation, SAP is under consideration for implementation across all functions of the DISCOM, creating a transparent and effective business environment for the Company as a whole. b. Metering: The DISCOM might not be the first but certainly one of the frontrunner in implementing latest metering technologies. Electronic meters with digital display, AMR meters then LPR meters, group metering, pre-paid meters and SMART meters are DISCOM’s latest offering. Nodal point meters are installed to capture cluster wise consumption for micro audits. “Photo meter readings” are introduced in rural areas to ensure monthly visit by the meter readers, accurate meter reading is taken on monthly basis. c. Data Analysis Center: The Company has set up data analysis center to analyze drop in consumption, exception reports, and consumption pattern factoring seasonal variation on monthly basis to prepare suspect list. Attempts are being made to take intensive actions in such areas in accordance with law. d. Creation of new load centers and reinvigorate distribution network: Periodic load survey and analysis is carried out to contain technical losses due to overload of transformers and to reduce transformer burnt cases. Based on load survey report, new sources are created and load is shared thereby reducing the load from overloading transformers. HVDS, Areal bunch cables and junction boxes are placed in the network, to restrict pilfering of electricity due to consumer’s easy access.Also, on pilot basis, underground feeder pillar box has been introduced, to eliminate un- authorize tapings. e. Spot Connections: Camps has been organized in rural areas to provide new connection at the same day to the consumer through spot connection drives. Address in village is not clear and it becomes difficult to follow up with the consumer

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indulging in electricity theft, as not being registered consumer. By this drive, meter has been provided to them and energized supply on same day. f. GIS System: The Company has introduced state of the art and latest Geographical Information System (GIS) application covering the entire area in its jurisdiction. GIS based system integrated with SAP shall allow users to undertake complex engineering analysis, identify theft locations in the map form, create network design, generate bill of materials and manage trouble call at dispatch center. Premises in villages are difficult to locate due to improper address. But with GIS tracker, Location of pilferage like consumer premises, pole and distribution transformer in marked in the map and it helps to identify location and book cases through LCC drives. Also GIS co-ordinates at the time of LCC booking, shall be captured in hand held device and updated in the GIS map for future use.

B. Social Initiatives: Community Awareness: Promotional vans, leaflets distribution and spreading news through media, are key instruments, the Company uses to sensitize people for better, effective and “pay as per use” for use of electricity.

5.5. State Transmission Losses

5.5.1. The Commission approved intra-state transmission loss at 3.00% for FY 2020-21 in the last MYT Order. Accordingly, the Petitioner has considered 3.00% transmission loss for FY 2021- 22.

5.6. Central Transmission Losses

5.6.1. The Petitioner has considered transmission loss of 1.73% as per latest 52 weeks moving average https://erldc.in/market-operation/52weeksloss/) and accordingly requests the Hon’ble Commission to consider the same.

5.7. Power Purchase

5.7.1. The DISCOMs rely on allocation from central generating stations and state projects for procuring power for sale in the state. This power has been proposed to be allocated between north and south Bihar in the proportion as determined by the board resolution as detailed below: 5.7.2. Bihar State Power Holding Company Ltd (BSPHCL) issued vide its Resolution No.55- 10 dated 14th July 2017 for approval regarding distribution of power purchase agreement between NBPDCL and SBPDCL. The notification states that,

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“RESOLVED THAT Power Purchase & Transmission charges bills are to be admitted and payment by both DISCOMs i.e NBPDCL and SBPDCL in the ratio 46:54 respectively w.e.f.1-4-2017subjected to the final reconciliation of actual consumption”

The Board further ratifies the submission made in attached agenda note. 5.7.3. The following plant addition has been considered by the Petitioner for FY 2020-21 and FY 2021-22:

Table 81:Plant Addition in FY 2020-21 & FY 2021-22 Plants to be added in FY 2020-21 & FY 2021-22 Bihar Sr. No Plant Name CoD Allocation (MW) A Conventional 3072 1. Barh Stage I Unit I Dec 2020 342 2. Barh Stage I Unit II July 2021 342 3. Barh Stage I Unit III Jan 2022 342 4. Nabinagar BRBCL Unit IV Feb 2021 24 5. NPGCL Unit II Dec 2020 517 6. NPGCL Unit III Aug 2021 517 7. North Karanpura Unit I June 2021 229 8. North Karanpura Unit II Nov 2021 229 9. Darlipali STPS Unit II Dec 2020 80 10. BTPS Stage I Unit I Jan 2020 110 11. BTPS Stage I Unit II May 2021 110 BTPS Stage II Unit II May 2021 250 B Non-Conventional 2,030 1. SECI Phase-II (Solar) March 2022 150 2. SECI Phase-III (Solar) May 2021 300 3. NTPC (Solar) June 2021 300 4. Torrent Power Mar 2021 49.80 5. Adani Green Dec 2020 50 6. Alfanar Dec 2020 50 7. Adani Green (V) Oct 2021 125 8. Boreas Renewable Dec 2020 175 9. Ostro Kannad Aug 2021 300 10. Morjar Windfarm Aug-2021 50 11. SECI Phase-V Jan 2022 480 Total 5102

5.7.4. The power purchase (MU) has been calculated on yearly basis keeping in mind the maintenance schedule as notified by ERPC/ERLDC from April 2019 to March 2020. The methodology of projecting Power purchase quantum (MU) is as mentioned below:

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i. The above mentioned share allocation has been considered using the latest COD’s of each unit and weighted average based on its projected availability. Many new plants are expected to start operations in the financial year 2021-22. The increase in the share allocation has grown with the demand and is in lines allocated generation capacity in the 24x7 Power For All (PFA) agreement.

ii. The Plant Load Factor (PLF) for each plant has been calculated on actual basis of past 4 to 5 years as applicable and for new upcoming conventional plants, a minimum technical PLF of 55% or the PLF of plants with similar capacity (whichever is minimum) is considered. Further, three plants namely FSTPP – 1 & 2 (502 MW), KHSTPP 1 (352 MW) and Talcher Stage I (412 MW) are completing their 25 years in FY 2021- 22 and therefore, a PLF of 55% has been considered for these plants during Power purchase for FY 2021-22.

iii. Normative Plant Load Factor Plant (PLF) provided by central Electricity Regulatory Commission (CERC) for the thermal and hydro plants and the auxiliary consumptions specified for the plants. For the state plants PLF highest among the PLF norms specified by BERC and the plant wise auxiliary consumption determined by BERC for thermal, and biomass has been considered. For the solar plants highest among the CUF of 19%. For new plants addition for non-conventional, minimum take off energy has been considered.

5.7.5. Total Power purchase projections data for FY 2021-22 (MU) is provided in the below table.

Table 82: Total power purchase for FY 2021-22 (MW & MUs) Share allocated Units purchased Name of The Source (MW) (MU) Central Generating Stations 3,538.32 15,039.06 FSTPP I &II 271.28 1,195.92 FSTPP III 58.10 310.50 KHSTPP I 189.87 837.03 KHSTPP II 40.34 233.50 Barh Stage I Unit I 184.62 816.10 Barh Stage I Unit II 184.62 272.03 Barh Stage II 646.77 3,296.83 Nabinagar (BRBCL) Unit I - III 40.50 172.19 Nabinagar (BRBCL) Unit IV 13.50 52.84 Talcher Stage I 222.73 960.41 KBUNL Stage II 157.89 520.33 NPGCL Unit I 302.11 1,988.78

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Share allocated Units purchased Name of The Source (MW) (MU) NPGCL Unit II 302.11 1,335.48 NPGCL Unit III 302.11 777.20 North Karanpura Unit I 123.85 136.12 Darlipali STPS Unit I 51.24 204.68 Darlipali STPS Unit II 51.24 204.68 Chuka 43.20 230.76 Rangit 11.34 65.15 Tala 139.05 534.71 Teesta 58.55 317.27 Mangdechu 143.35 576.54

State Generating Stations 536.92 1,706.96 BSPHC 29.32 32.40 KBUNL Stage I 118.80 391.51 BTPS Stage I Unit I 59.40 195.75 BTPS Stage I Unit II 59.40 196.29 BTPS Stage II Unit I 135.00 444.90 BTPS Stage II Unit II 135.00 446.12

IPPs 263.52 1,260.56 GMR 140.40 770.31 JITPL 123.12 490.25

Renewables 1,474.96 2,695.88 M/s SunmarkEnergy Projects 5.40 8.92 Limited (Formerly MBCEL) M/s Response renewable 5.40 8.92 Energy Ltd, Kolkata. M/s Avantika Contractors Ltd., 2.70 4.46 Hyderabad M/s Glatt Solutions Pvt. Ltd, 1.62 2.68 Kolkata. Alfa Infraprop Pvt. Ltd. 10.80 17.84 Udipta Energy & Equipment 2.70 4.46 Pvt. Ltd. Azure Power India Pvt. Ltd. 5.40 8.92 Welspun Renewables Project - 5.40 8.92 I Welspun Renewables Project 8.10 13.38 – II Welspun Renewables Project 8.10 13.38 – III Acme Cleantech Project 8.10 13.38 (Nalanda) Acme Cleantech Project 5.40 8.92 (Magadh) Solar Energy Corporation of 5.40 8.92 India Ltd., Government of India SECI Phase-II 81.00 14.38 SECI Phase-III 162.00 317.12 NTPC 162.00 277.31 Wind ISTS Scheme Tranche I (PTC) (Greeen Infra, Inox, 108.00 253.00 Mytrah & Ostro) Wind ISTS Scheme Tranche II 54.00 145.78 (SECI) (Orange)

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Share allocated Units purchased Name of The Source (MW) (MU) SECI Green Infra 54.00 147.89 Torrent Power 26.89 88.06 Adani Green 27.00 76.06 Alfanar 27.00 73.52 Betam 27.11 84.21 Adani Green (V) 67.50 79.24 Boreas Renewable 94.50 295.98 Ostro Kannad 162.00 279.43 Morjar Windfarm 27.00 41.85 SECI Phase-V 259.20 116.53 New Swadeshi Sugar Mill, 5.40 23.81 Narkataganj Hasanpur Sugar Mill, 7.83 34.52 Dalsinghsarai Bharat Sugar Mills, Sidhwalia, 8.10 35.71 Gopalganj Hari Nagar Sugar Mills, Hari 7.83 34.52 Nagar, West Champaran HPCL Biofuels Ltd., Sugauli, 10.80 47.61 East Champaran HPCL Biofuels Ltd., Lauria, 10.80 47.61 West Champaran Riga Sugar Company Ltd. 1.62 7.14 Siddhashram Rice Mill Cluster 0.54 3.46 Pvt ltd Bihar Distillers & Bottlers Pvt 5.08 32.55 ltd Tirupati Sugar 3.24 15.49

Others 59.40 238.74 PTC JITPL 37.13 147.83 PTC SKS Power 22.28 90.91 Total 5,873.12 20941.21

5.7.6. The Petitioner requests the Hon’ble Commission to approve the aforementioned revised power purchase quantity for the FY 2021-22.

5.8. Energy Balance

5.8.1. Based on above discussed elements such as sales, losses & power availability, the revised projected energy balance for 2021-22 is as under –

Table 83: Energy Balancing for ARR for FY 2021-22

Sr No Particulars Unit Projection FY 2021-

22 A Energy Requirement 1 Energy sales MU 13,428.07 2 Less: Inter-state sales MU - 3 Energy sales excluding Inter-state sales MU 13,428.07 4 Distribution Loss % 22.00%

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Sr No Particulars Unit Projection FY 2021-

22 5 Add: Distribution Loss MU 3,787.40 6 Total energy required at Distribution periphery MU 17,215.47 7 Add: Inter-state sales MU - 8 Total energy required at Distribution periphery MU 17,215.47 9 State Transmission Loss % 3.00% 10 Add: State Transmission Loss MU 532.44 11 Total energy required at State Transmission Periphery MU 17,747.91

B Energy Available 1 From Central Sector MU 15,039.06 2 From IPP MU 1,260.56 3 From State Generating Stations MU 1,706.96 4 From Renewable Sources MU 2,695.88 5 UI (Net) MU - 6 Others(please specify) MU 238.74 7 CTU losses % 1.73% 8 CTU Losses MU 281.98 9 Net power available at State periphery (1+2+3+4+5+6-8) MU 20,659.22

C Energy Surplus/(Deficit) at State Periphery MU 2,911.31

5.8.2. As can be seen from the above table, there is a surplus of 2911.31 MUs at State Periphery for SBPDCL in FY 2021-22 as per which, the Petitioner has calculated an ex-bus surplus of 2951 MUs. The Petitioner has considered the ratio of power purchased from interstate power generating stations contributing to interstate transmission losses. The Hon’ble Commission is requested to consider the same. 5.8.3. The Petitioner humbly requests the Hon’ble Commission to approve the aforementioned revised energy balance for FY 2021-22.

5.9. Renewable Power Purchase Obligation

5.9.1. It is submitted that Hon’ble Commission has notified the BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 and BERC (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010. Further, there were amendments in both regulations in September 2012 wherein the Solar RPO was modified.

5.9.2. The Commission has also come up with its 3rd amendment in due course BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 and amended Clause 4 as follows:

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5.9.3. The Licensees are already taking steps to ensure that they enhance their Renewable Energy mix and accordingly anticipate addition in Solar and Non-Solar power as provided in the following Table. 5.9.4. The details of RPO to be met by the Petitioner for the FY 2021-22 are given in the table below Table 84: Renewable energy purchase obligation for FY 2021-22

Particular units FY 2021-22 Energy Sale MU 13428.07 Hydro Power Purchase (B) MU 1724.44 Inter-State Transmission Loss in % (C) % 1.73% Inter-State Transmission Loss in % (D=B*C) MU 29.83 Intra-State Transmission Loss in % (E) % 3.00% Intra-State Transmisison Loss (F=E*(B-D)) MU 50.84 Distribution Loss (%) (G) % 22.00% Distribution Loss (H=G*(B-D-F)) MU 361.63 Hydro Power Consumed (I=B-D-F-H) MU 1282.14 Conventional Power Consumed (J=A-I) MU 12145.93 RPO Targets (%) % 17.00% Solar % (K) % 8.00% Non-Solar % (L) % 9.00% RPO Targets MU 2064.81 Solar (J*K) MU 971.67 Non-Solar (J*L) MU 1093.13 Renewable Power Purchase 2728.28 Solar MU 848.44 Non-Solar MU 1879.84 Captive Consumtion Solar MU 17.89 BREDA Off-grid solar MU 5.09 BREDA GCRT solar 0.39 SBPDCL DDG Standalon MU 2.27 SBPDCL DDG Minigrid MU 2.89 SBPDCL IPDS 0.57 SBPDCL Net/Gross Meter Consumer 4.91 SPV Plant Solar Genration 1.76 Captive Consumption Non Solar BERDA MU 92.29 REC Purchase MU 0.00 Solar MU 0.00 Non Solar MU 0.00 Total Solar RPO Compliance MU 866.33 Total Non Solar RPO Compliance MU 1972.12

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Particular units FY 2021-22 RPO Shortfall MU -773.64 Solar Shortfall MU 105.34 Non-Solar Shortfall MU -878.99 Carried Forward Shortfall from FY 2020-21 MU 447.67 Carried Forward Shortfall Solar MU 766.35 Carried Forward Shortfall Non-Solar MU -318.68 Total Shortfall MU -325.97 Total Shortfall Solar MU 871.69 Total Shortfall Non Solar MU -1197.67

5.9.5. As per the plans of the Petitioner as presented above, it may not be able to fulfill individual RPO targets for Solar and Non-solar, however, the overall target of RPO will be fully achieved by the Petitioner and the Petitioner will be in surplus.

5.9.6. The Petitioner further submits that it has entered into PPAs with SECI & NTPC for purchase of renewable power (Solar and Non-Solar) to the tune of 2,000 MW which were expected to be in commercial operation by FY 2020-21. However, the plants have extended their SCD date in FY 2021-22 (majorly in the second half of FY 2021-22) owing to various technical and commercial reasons one of which is the impact of COVID-19. The Petitioner had planned its power purchase in FY 2021-22 as per the original SCD of the upcoming plants. However, due to the extension in SCD of the renewable plants, the planning of the petitioner is less likely to materialize and therefore, a huge shortfall can be observed in fulfilling its RPO obligation.

5.9.7. The Petitioner therefore requests the Hon’ble Commission to not penalize the petitioner for parameters which are uncontrollable in nature for the Petitioner and the RPO targets for FY 2021-22 may please be revised based on actual RE purchase of the petitioner and the petitioner should not burdened with additional cost of purchase of RECs. The Petitioner further reiterates that all the related factors restricting the petitioner in fulfilling the set RPO target are uncontrollable in nature.

5.10. Power Purchase Cost 5.10.1. The power purchase cost mainly comprises of fixed charges and energy charges for two part tariff stations i.e. NTPC, NHPC & PTC in case of Petitioner. The Petitioner has considered the actual energy charges and fixed cost for existing power stations based on previous 12 months data and assumptions explained in previous chapter. The Petitioner has considered the upcoming conventional power purchase cost as per MYT

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Order approved for the FY 2021-22. For Non-Conventional, it has considered as per tariff discovered. 5.10.2. Power purchase costs: The table here provides detailed power purchase costs

Table 85: Detailed power purchase costs for FY 2021-22 (in INR Crore)

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Share Units Fixed Energy Total PLF Miscellaneous Average Name of The Source allocated purchased charge cost (Rs Cost (Rs (%) cost (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) Crs) Central Generating Stations 3,538.32 15,039.06 2,846.30 3,567.35 - 6,413.65 4.26 FSTPP I &II 271.28 1,195.92 55.00% 129.87 330.37 - 460.23 3.85 FSTPP III 58.10 310.50 66.68% 49.94 84.52 - 134.47 4.33 KHSTPP I 189.87 837.03 55.00% 94.99 183.33 - 278.32 3.33 KHSTPP II 40.34 233.50 72.22% 25.70 48.43 - 74.13 3.17 Barh Stage I Unit I 184.62 816.10 55.00% 196.73 218.97 - 415.70 5.09 Barh Stage I Unit II 184.62 272.03 55.00% 65.58 72.99 - 138.57 5.09 Barh Stage II 646.77 3,296.83 63.60% 794.75 884.57 - 1,679.33 5.09 Nabinagar (BRBCL) Unit I - III 40.50 172.19 53.04% 62.91 41.86 - 104.77 6.08 Nabinagar (BRBCL) Unit IV 13.50 52.84 53.04% 19.30 12.85 - 32.15 6.08 Talcher Stage I 222.73 960.41 55.00% 86.44 193.58 - 280.02 2.92 KBUNL Stage II 157.89 520.33 41.12% 171.74 140.27 - 312.01 6.00 NPGCL Unit I 302.11 1,988.78 82.13% 478.21 399.50 - 877.71 4.41 NPGCL Unit II 302.11 1,335.48 55.00% 321.12 268.27 - 589.39 4.41 NPGCL Unit III 302.11 777.20 55.00% 186.88 156.12 - 343.00 4.41 North Karanpura Unit I 123.85 136.12 55.00% 32.73 27.34 - 60.07 4.41 Darlipali STPS Unit I 51.24 204.68 49.84% 44.36 21.29 - 65.65 3.21 Darlipali STPS Unit II 51.24 204.68 49.84% 44.36 21.29 - 65.65 3.21 Chuka 43.20 230.76 61.59% - 55.42 - 55.42 2.40 Rangit 11.34 65.15 66.25% 12.07 12.41 - 24.48 3.76 Tala 139.05 534.71 44.34% - 115.50 - 115.50 2.16 Teesta 58.55 317.27 62.48% 28.61 36.90 - 65.51 2.06 Mangdechu 143.35 576.54 46.38% - 241.57 - 241.57 4.19 - State Generating Stations 536.92 1,706.96 0.00% 526.09 513.56 - 1,039.65 6.09 BSPHC 29.32 32.40 12.74% - 7.81 - 7.81 2.41 KBUNL Stage I 118.80 391.51 41.12% 129.22 130.82 - 260.04 6.64 BTPS Stage I Unit I 59.40 195.75 41.12% 60.55 61.78 - 122.33 6.25 BTPS Stage I Unit II 59.40 196.29 41.12% 60.72 61.95 - 122.66 6.25 BTPS Stage II Unit I 135.00 444.90 41.12% 137.61 125.43 - 263.04 5.91 BTPS Stage II Unit II 135.00 446.12 41.12% 137.99 125.77 - 263.76 5.91 - IPPs 263.52 1,260.56 0.00% 281.07 145.64 50.75 477.46 3.79

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Share Units Fixed Energy Total PLF Miscellaneous Average Name of The Source allocated purchased charge cost (Rs Cost (Rs (%) cost (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) Crs) GMR 140.40 770.31 68.45% 144.09 92.21 57.36 293.66 3.81 JITPL 123.12 490.25 49.68% 136.98 53.44 (6.61) 183.81 3.75 - Renewables 1,474.96 2,695.88 0.00% - 889.70 - 889.70 3.30 M/s SunmarkEnergy Projects Limited (Formerly 5.40 8.92 19.00% - 5.06 - 5.06 5.67 MBCEL) M/s Response renewable Energy Ltd, Kolkata. 5.40 8.92 19.00% - 5.06 - 5.06 5.67 M/s Avantika Contractors Ltd., Hyderabad 2.70 4.46 19.00% - 3.43 - 3.43 7.69 M/s Glatt Solutions Pvt. Ltd, Kolkata. 1.62 2.68 19.00% - 1.52 - 1.52 5.67 Alfa Infraprop Pvt. Ltd. 10.80 17.84 19.00% - 14.04 - 14.04 7.87 Udipta Energy & Equipment Pvt. Ltd. 2.70 4.46 19.00% - 3.56 - 3.56 7.98 Azure Power India Pvt. Ltd. 5.40 8.92 19.00% - 7.48 - 7.48 8.39 Welspun Renewables Project - I 5.40 8.92 19.00% - 7.76 - 7.76 8.70 Welspun Renewables Project – II 8.10 13.38 19.00% - 11.56 - 11.56 8.64 Welspun Renewables Project – III 8.10 13.38 19.00% - 11.45 - 11.45 8.56 Acme Cleantech Project (Nalanda) 8.10 13.38 19.00% - 11.68 - 11.68 8.73 Acme Cleantech Project (Magadh) 5.40 8.92 19.00% - 7.79 - 7.79 8.73 Solar Energy Corporation of India Ltd., Government of 5.40 8.92 19.00% - 4.91 - 4.91 5.50 India SECI Phase-II 81.00 14.38 25.71% - 3.61 - 3.61 2.51 SECI Phase-III 162.00 317.12 26.17% - 83.08 - 83.08 2.62 NTPC 162.00 277.31 24.20% - 74.04 - 74.04 2.67 Wind ISTS Scheme Tranche I (PTC) (Greeen Infra, 108.00 253.00 26.94% - 89.31 - 89.31 3.53 Inox, Mytrah & Ostro) Wind ISTS Scheme Tranche II (SECI) (Orange) 54.00 145.78 31.05% - 39.51 - 39.51 2.71 SECI Green Infra 54.00 147.89 31.50% - 32.76 - 32.76 2.22 Torrent Power 26.89 88.06 37.66% - 23.87 - 23.87 2.71 Adani Green 27.00 76.06 32.40% - 20.69 - 20.69 2.72 Alfanar 27.00 73.52 31.32% - 19.94 - 19.94 2.71 Betam 27.11 84.21 35.73% - 21.22 - 21.22 2.52 Adani Green (V) 67.50 79.24 32.42% - 22.42 - 22.42 2.83 Boreas Renewable 94.50 295.98 36.02% - 83.76 - 83.76 2.83 Ostro Kannad 162.00 279.43 31.62% - 80.75 - 80.75 2.89 Morjar Windfarm 27.00 41.85 28.42% - 12.10 - 12.10 2.89 SECI Phase-V 259.20 116.53 23.59% - 31.35 - 31.35 2.69

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Share Units Fixed Energy Total PLF Miscellaneous Average Name of The Source allocated purchased charge cost (Rs Cost (Rs (%) cost (Rs Crs) Cost (MW) (MU) (Rs Crs) Crs) Crs) New Swadeshi Sugar Mill, Narkataganj 5.40 23.81 55.00% - 12.09 - 12.09 5.08 Hasanpur Sugar Mill, Dalsinghsarai 7.83 34.52 55.00% - 21.46 - 21.46 6.22 Bharat Sugar Mills, Sidhwalia, Gopalganj 8.10 35.71 55.00% - 12.63 - 12.63 3.54 Hari Nagar Sugar Mills, Hari Nagar, West Champaran 7.83 34.52 55.00% - 19.22 - 19.22 5.57 HPCL Biofuels Ltd., Sugauli, East Champaran 10.80 47.61 55.00% - 26.51 - 26.51 5.57 HPCL Biofuels Ltd., Lauria, West Champaran 10.80 47.61 55.00% - 26.51 - 26.51 5.57 Riga Sugar Company Ltd. 1.62 7.14 55.00% - 4.47 - 4.47 6.26 Siddhashram Rice Mill Cluster Pvt ltd 0.54 3.46 80.00% - 2.56 - 2.56 7.39 Bihar Distillers & Bottlers Pvt ltd 5.08 32.55 80.00% - 20.71 - 20.71 6.36 Tirupati Sugar 3.24 15.49 55.00% - 9.83 - 9.83 6.34 - Others 59.40 238.74 0.00% - 90.16 - 90.16 3.78 PTC JITPL 37.13 147.83 49.68% - 61.27 - 61.27 4.14 PTC SKS Power 22.28 90.91 50.92% - 28.89 - 28.89 3.18 - Transmission and Other Charges - - 1,654.04 - - 1,654.04 SLDC - - 4.27 - - 4.27 BGCL - - 359.83 - - 359.83 BSPTCL - - 742.21 - - 742.21 POSOCO - - 2.70 - - 2.70 PGCIL ULDC CHG ------PGCIL - - 545.03 - - 545.03 Open Access Charges ------Total 5,873.12 20941.21 5307.50 5206.41 50.75 10564.66 5.04

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5.10.3. The Petitioner has made PPA agreements with the new plants according to 24x7 Power For All MoU but considering the reality, the expected COD from the plants have been considered reasonably. The average cost of power calculated above is subjected to change on actual basis since power drawl from open market will be available which is subjected to Annual performance review and true up process. The Petitioner, in extreme cases wherein there is delay in CoD of any Plant can purchase power from open market at reasonable rates as determined by the market. 5.10.4. We humbly request the Hon’ble Commission to approve the above mentioned projected power purchase costs for the period the FY 2021-22.

5.11. Transmission Charges

5.11.1. It is submitted that the Petitioner has to pay transmission charges to POWERGRID for use of transmission facilities enabling power drawl from eastern region. The Petitioner has considered POWERGRID charges as approved in MYT for FY 2021-22. 5.11.2. Further the Petitioner also pays BSPTCL, BGCL and SLDC charges as approved by the Commission for FY 2021-22. 5.11.3. We request the Hon’ble Commission to approve the transmission and related charges for interstate as well as intra-state transmission transactions for FY 2020-21 as per the below table:

Table 86: Transmission charges for ARR (in INR Crore)

Particulars FY 2021-22 SLDC 4.27 BGCL 359.83 BSPTCL 742.21 POSOCO 2.70 POWERGRID 545.03 Total Transmission 1654.04 Purchase

We humbly request the Hon’ble Commission to approve the aforementioned transmission charges for the FY 2021-22.

5.12. Capital Investment Plan, Capitalization and Funding

5.12.1. The Petitioner has computed the capitalization of investment on the assumption that 80% of the opening CWIP will get capitalized every year and 20% of the fresh investment is would capitalize.. The details are mentioned in the below table for the kind reference of the Hon’ble Commission:-

Table 87: Capitalization in 2021-22(in INR Crore)

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S.N Name of scheme FY 2021-22

1 BRGF 2 R-APDRP - 3 NABARD Phase VIII - 4 NABARD Phase XI - 5 MP/CM LAD - 6 Deposit Scheme - 7 ADB - 8 ACA State Plan - 9 Burnt DTR State Plan 2.00 10 State Plan -Others 131.57 12 Reconductoring 106.20 13 IPDS 800.00 15 RGGVY 197.91 16 DDUGJY 100 17 APL Connection/Saubhagya - 19 Own Sources 75.70 20 BRGF - 23 R-APDRP - 24 Total 1,413.38

5.12.2. The Petitioner has allocated the investments through various schemes into grant, Loan and Equity. The said allocation is based on the actual source from which funds were received by the Petitioner. The Petitioner has provided the detailed capitalization plan to the Hon’ble Commission as required in the tariff formats. 5.12.3. The Capitalization plan bifurcated into various sources of funds is as follows –

Table 88: Capital works in progress for 2021-22(in INR Crore)

Ensuing year S. No. Particulars (FY 2021-22) 1 Opening CWIP 6,226.72 2 New Investment 66.5 3 Less Capitalization 1,413.38 (a) CWIP 1,130.70 (b) New Investment 282.68 4 Closing CWIP (1+2-3) 4,879.84 5 Funding (a) CWIP Capitalization 1130.70 (i) Grant 574.50 (ii) Loan 231.83 (iii) Equity 324.38 (b) New Investment Capitalization 282.68 (i) Grant 143.62 (ii) Loan 57.96

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Ensuing year S. No. Particulars (FY 2021-22) (iii) Equity 81.09 6 Total capitalization 1,413.38 (i) Total Grant 718.12 (ii) Total Loan 289.79 (iii) Equity 405.47

5.12.4. The Petitioner would like to submit that the sources of funds under each scheme is as per the sanctioned documents for every scheme. 5.12.5. Therefore, the Petitioner requests the Hon’ble Commission to approve the Capitalization plan as estimated by the Petitioner.

5.13. Gross Fixed Assets

5.13.1. The Petitioner hereby submits the computation of Gross Fixed Assets considering the opening fixed assets, capitalization as per the new schemes in FY 2021-22. 5.13.2. In addition to ongoing schemes, various new schemes were introduced. 5.13.3. The below table demonstrates the Asset addition planned during FY 2021-22 and closing balance of Gross Fixed Assets for FY 2020-21:-

Table 89: GFA for FY 2021-22 (in INR Crore)

Closing Closing balance balance at the Addition during Sl. No. Assets group at the end of end of Previous ensuing year ensuing year Year 1 Land and land rights 1,642.35 191.00 1,833.35 2 Buildings 145.73 18.88 164.60 3 Hydraulic works 1.05 0.14 1.19 4 Other civil works 46.25 5.66 51.91 5 Plant and Machinery 2,590.64 325.20 2,915.84 6 Lines and cable network 6,810.30 849.94 7,660.24 7 Vehicles 1.42 0.17 1.59 8 Furniture and Fixtures 5.72 0.71 6.43 9 Office equipment 158.13 21.50 179.63 10 Spare unit/service unit 1.27 0.15 1.41 Assets taken over from licensees 0.34 0.04 0.38 11 pending final valuation Total 11,403.20 1,413.38 12,816.58

5.13.4. The Petitioner would like to submit that asset additions are done as per the Capitalization plan an as per the approved schemes. 5.13.5. The Hon’ble Commission is requested to approve the GFA as estimated by the Petitioner for FY 2021-22.

5.14. Depreciation on GFA

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5.14.1. The depreciation has been computed annually based on straight line method by applying weighted average rate of depreciation on the average GFA. For this purpose, the Petitioner has adopted the Regulation 23 of the Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018. The Petitioner has followed Straight line depreciation method while calculating depreciation for FY 2021-22. 5.14.2. The rate of depreciations has been taken as per the rates given by the Hon’ble Commission. The Petitioner has reduced the depreciation on assets created out of Grants from the gross depreciation to arrive at the net depreciation to be charged. The computation of depreciation on the assets created out of Grants is based on the actual ratio of ‘Grants’ in GFA. 5.14.3. Also, it is to bring into kind attention of the Hon’ble Commission that the balance of GFA in the beginning of the year and additions during the year does not include the value of Land as it is a non-depreciable asset. 5.14.4. The table provided below demonstrates the depreciation projected by the Petitioner for FY 2021-22 –

Table 90: Depreciation on GFA (in INR Crore)

Particulars FY 2021-22 Gross fixed assets of the beginning of the year 9,760.85 Additions during the year 1,222.38 IDC - Adjustment for assets sold/discarded etc - Closing GFA 10,983.22 Average GFA 10,372.04 WeightedAverage Rate of Depreciation 4.78% Gross Depreciation at the end of the year 495.29 Opening grants 4,595.89 619.57 Grants during the year Adjustment for assets sold/discarded etc Total Grants 5,215.45 Average Grants 4,905.68 Weighted Average rate of Depreciation 5.23% Depreciation for GFA on Grants 256.68 Net Depreciation of GFA on loans (8-15) 238.61

5.14.5. As seen from the above table it is clearly evident that the Petitioner has deducted the depreciation on those fixed assets which are funded through grants. It is requested to the Hon’ble Commission to allow the depreciation as provided above.

5.15. Interest on Loans

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5.15.1. The Petitioner submits that the calculation of interest on Project loans is as per Regulation 25 of the BERC Multi-Year Tariff Regulations 2018. 5.15.2. The Petitioner has provided detailed loan schedule depicting the Loans and their additions and repayment during the year. Detailed Loan schedule for FY 2021-22 is provided in the table below –

Table 91: Detailed loan schedule for FY 2021-22 (in INR Crore)

Repaym Amount Addition Purpose Opening Rate of ent Closing Average of Particulars during of loan balance Interest during balance Balance interest the year the year paid REC (RGGVY) Project 143.79 10.33% - 13.00 130.79 137.29 14.59 Term Loan REC (R-APDRP) Project 314.33 10.40% - 34.93 279.40 296.87 29.66 Term Loan PFC (R-APDRP) Project 360.82 9.00% - - 360.82 360.82 32.47 Term Loan REC (IPDS) Term Project 342.00 10.19% - - 342.00 342.00 34.85 Loan REC (DDUGJY) Project 700.02 10.19% - - 700.02 700.02 71.33 Term Loan State Govt.-Non- Project 94.43 10.50% 27.59 - 122.02 108.23 11.36 Plan Loan Support BSPHCL (ADB) Project 6.28 10.50% - - 6.28 6.28 0.66 Loan Total 1,961.67 27.59 47.93 1,941.33 1,951.50 194.92 Weighted Average rate of Interest 10.03%

5.15.3. The interest on normative debt is calculated on the 70% of the amount of capital assets reduced by the value of grants and depreciation representing normative repayment. 5.15.4. The below table demonstrates the computation of interest on normative debt for the FY 2021-22:-

Table 92: Interest on normative debt for 2021-22 (in INR Crore)

Particulars FY 2021-22

Opening loan balance 2,612.97

Additions during the year 486.68

Normative Repayment 238.61

Closing Loans (1+2-3) 2,861.05

Average Loans {(1+4)/2} 2,737.01

Interest rate 10.03%

Interest Charges ( 5*6 ) 274.52

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5.15.5. It is requested to the Hon’ble Commission to approve INR 274.52 Crore towards interest on normative debt.

5.16. Other Financial Charges

5.16.1. The Petitioner is incurring other Finance charges i.e. Discount to consumers for timely payment of bills, power factor rebate, interest to suppliers/contractors etc. The Petitioner is claiming other Finance charges by escalating the charges estimated for FY 2020-21 by 10% for FY 2021-22: -

Table 93: Other finance charges (in INR Crore)

Projections for Particulars FY 2021-22 Expenses estimated in previous year 63.43 Inflationary index 6.34 Finance charges estimated 69.77

5.16.2. Therefore, the Petitioner requests the Hon’ble Commission to allow the aforementioned Finance charges for FY 2021-22.

5.17. Operation & Maintenance (O&M) Expenses

5.17.1.1. Regulation 22 BERC (Multi Year Distribution Tariff) Regulations 2018 states that:

(b) Norms shall be defined in terms of combination of number of personnel per 1000 consumers and number of personnel per substation along with annual expenses per personnel for Employee expenses; combination of A&G expense per personnel and A&G expense per 1000 consumers for A&G expenses and R&M expense as percentage of gross fixed assets for estimation of R&M expenses.

(c) One-time expenses such as expense due to change in accounting policy and arrears paid due to pay commission recommendation shall be excluded from the norms in the trajectory.

(d) The unforeseen expenses beyond the control of the Distribution Licensee such as pay revision, shall be excluded from the norms in the trajectory.

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(f) The norms in the trajectory shall be specified over the control period with due consideration to productivity improvements.

(g) The norms shall be determined at constant prices of base year and escalation on account of inflation shall be over and above the baseline.

(h) The Distribution Licensee specific trajectory of norms shall be identified by the Commission on the basis of absolute and relative analysis.

5.17.1.2. The Commission, in terms of regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined Employee for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 20.02.2019. Accordingly, the employee cost computed for 2021-22 is shown in the table below:

Table 94: Employee expenses (in INR Crore)

Actual Sr.No Particulars Base Value 2021-22 1 Average annual CPI index 5.34% 2 Norms-Number of personnel per 1000 consumers 0.2667 0.2667 3 Norms-Number of personal per substation 19.4782 19.4782 4 No. of consumers (1000) 6386 5 No of substations 590 6 Annual expenses per personnel (Rs. Cr) 0.0486 0.0512

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Actual Sr.No Particulars Base Value 2021-22 7 Employee cost per 1000 consumers 87.15 8 Employee cost per substation 588.09 9 Total Employee cost 675.24

5.17.1.3. The Hon’ble Commission is therefore requested to approve the employee expenses for FY 2021-22

5.17.2. Repairs and maintenance:

5.17.2.1. Regulation 22.2 of BERC (Multi Year Distribution Tariff) Regulations 2018, specify R&M expenses as percentage (as per the norm determined) of Gross Fixed Assets excluding land cost for the year.

5.17.2.2. The Commission had determined the R&M norm i.e. ‘K’ factor at 1.66% for NBPDCL and 2.16% for SBPDCL for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 25.02.2019. The detailed computation of R&M expenses for the FY 2021-22 is shown below:

Table 95: R&M Expense (in INR Crore)

FY 2021-22 Sr.No Particulars Actual 1 Opening GFA 11403.20 2 Opening Land Cost 1642.35 3 Opening GFA exc land cost 9,760.85 4 K Factor 2.16% 5 R&M Expense 210.83

5.17.3. Administrative expenses:

5.17.3.1. The Commission, in terms of regulation 22 of BERC (Multi Year Distribution Tariff) Regulations 2018, had determined Employee and A&G norm for the MYT control period of FY 2019-20 to FY 2021-22 in the Tariff Order dated 20.02.2019.

5.17.3.2. Accordingly, the A&G computed for 2021-22, is shown in the table below:

Table 96: A&G expenses (in INR Crore)

FY 2021-22 Sr.No Particulars Base Actual value 1 Average annual WPI CPI index 2.95%

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FY 2021-22 Sr.No Particulars Base Actual value 2 Norms-A&G expenses per 1000 consumers 1.778 1.778 3 No. of consumers (1000) 6386 4 No of employees 12435 5 Annual expenses per 1000 consumers (Rs. Cr) 0.00356 0.01126 6 Annual expenses per employee (Rs. Cr) 0.00942 0.00666 7 A&G cost per 1000 consumers 71.83 8 A&G cost per employee 82.78 9 Total A&G cost 154.69

The Hon’ble Commission is therefore requested to approve the A&G expenses for FY 2021-22. Allocation of Holding Company cost: The Petitioner is claiming the holding company expenses by escalating the expenses projected for FY 2020-21 in Annual performance review by 10 %. 5.17.4. The below table represents the allocation of Holding Company cost towards Petitioner for FY 2021-22:

Table 97: Holding company cost for 2021-22 (in INR Crore)

Particulars FY 2021-22

Previous year expenses 25 Inflation rate considered 10% Inflationary increase 2.5 Total 27.50

5.17.5. The Petitioner requests the Hon’ble Commission to approve the above Holding Company cost for FY 2021-22

5.18. Return on Equity

5.18.1. The Petitioner has projected Return on Equity as per Regulation 27 of the BERC Multi Year Distribution Tariff Regulations 2018 as extracted below:

“(a) Return on equity shall be computed on 30% of the capital base or actual equity, whichever is lower.

Provided that assets funded by consumer contribution, capital subsidies/ grants and corresponding depreciation shall not form part of the capital base. Actual equity invested in the Distribution Licensee as per book value shall be considered as perpetual and shall be used for computation in this Regulation.

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Provided further that the premium if any raised by the Licensee while issuing share capital and investment of internal resources created out of its free reserves, for the funding of the Scheme, shall be reckoned as paid up capital for the purpose of computing return on equity, provided such premium amount and internal resources are actually utilized for meeting the capital expenditure of the distribution system, and are within the ceiling of 30% of capital cost approved by the Commission.

(b) The return on the equity invested shall be allowed from the date of start of commercial operation after put to use.

5.18.2. The return on equity is calculated on 30% of the fixed assets reduced by the amount of grants. The table below demonstrates the detailed calculation for return on equity:-

Table 98: Return on equity for ARR (in INR Crore)

Particulars FY 2021-22 Closing equity to end of 31.03.2016 638.06 Rate of return on equity % 14% Rate of Return on Equity (On Pre-tax Basis) 14% Return on Equity 89.33 Equity with effect from 1st April 2016 Opening equity 1146.74 Equity Addition during the year 208.58 Closing Equity 1355.32 Average Equity 1251.03 Rate of return on equity with effect 15.5% from 1.4.2016

Rate of Return on Equity (On Pre-tax Basis) 15.5% Return on Equity 193.91 Total Return on Equity 283.24

5.18.3. It is requested to the Hon’ble Commission to consider the amount of equity as calculated above.

5.19. Interest on Consumer Security Deposit

5.19.1. The Petitioner submits that Interest on Security Deposit amount has been claimed as per the Regulation 26 of the Multi-Year tariff regulations 2018 which specifies that “Provided further that interest shall be allowed on consumer security deposits and security deposits from Distribution System users held during the year at the Bank Rate

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as of the date on which petition for determination is filed. The interest allowed shall be subject to true up at weighted average Bank Rate of the concern Financial Year.”

5.19.2. The below table demonstrates the calculation of interest on consumer security deposits projected for FY 2021-22:- Table 99: Interest on consumer security deposits (in INR Crore)

S. No. Particulars FY 2021-22 1 Opening Security Deposit 694.0 Addition / (Deletion) during the 63.49 2 year 3 Closing Security Deposit 757.5 Average Security Deposit 725.77 4 (1+3)/2 5 RBI Bank Rate 4.25% 6 Interest on Security Deposit 30.85

5.19.3. The Petitioner has taken closing balance for FY 2020-21 as opening balance for FY 2021- 2022. The additions are assumed as per the audited financial statement for FY 2019-20 i.e. INR 63.49 . The interest on consumer security deposits calculated at the rate of 4.25% which is the RBI bank rate as on 04.12.2020 5.19.4. Therefore, it is requested to the Hon’ble Commission to approve the above mentioned amount towards interest on consumer security deposit for FY 2021-22.

5.20. Interest on Working Capital

5.20.1. The Petitioner has estimated the amount towards interest on Working capital for FY 2021- 22 as per the Regulation 26 of the Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2018, as extracted below:

" The Distribution Licensee shall be allowed interest on estimated level of working capital for the financial year, computed as follows: a) Two months equivalent of expected revenue. b) Maintenance spares@40% of R&M expenses for one month: Less: (i) Power purchase cost, transmission charges and load dispatch charges for one month. (ii) Depreciation, return on equity and contribution to contingency reserves equivalent to two months. (iii) Amount of security deposits from consumers, if any, held during the year. Provided that the interest on working capital shall be on normative basis and rate of interest shall be equal to the State Bank one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as of the date on which petition for determination of tariff is filed plus 150 basis points. The rate of interest for the purpose of Truing-up shall be the weighted average MCLR of the concern Financial Year plus 150 basis points. Provided further that interest shall be allowed on consumer security deposits and security deposits from Distribution System users held during the year at the Bank Rate as of the date on which petition for determination is filed. The interest allowed shall be subject to true up at weighted average Bank Rate of the concern Financial Year.

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Provided also that if the State Government is providing resource gap grant and/or direct subsidy to consumers, the working capital shall be reduced by two months equivalent of that amount."

5.20.2. The Petitioner has considered two months equivalent expected revenue and 40% of one month of R&M expense as specified in the above Regulation which was further deducted by Power Purchase cost along with transmission charges for one month, depreciation, ROE, contingency reserve for 2 month, consumer security deposit. 5.20.3. It is pertinent to note that the Petitioner has determined the ARR for FY 2021-22 taking into consideration the revised AT&C loss trajectory as submitted to MoP, GoI. Therefore, there will be no state government fund allocated towards disallowance of power purchase cost. In the light of the above explanation the Petitioner has not deducted any amount towards disallowed power purchase from working capital requirement. 5.20.4. The interest on working capital is calculated @ 7.75%, which is SBI one year MCLR on which 150 basis point is further added as per the prevailing Regulations to reach at a rate of 9.25%. The detailed working for the interest on working capital requirement is provided in the table below:

Table 100: Interest on working capital for FY 2021-22 (in INR Crore)

FY 2021-22 Sr. No Particulars (Projection) Two months equivalent expected 1,763.06 1 revenue Maintenance spares @40% of R&M 7.03 2 expenses for one month 3 Sub-total (1+2) 1,770.08 4 Less: Power purchase cost, transmission (i) charges and load dispatch charges of 747.51 one month Depreciation, return on equity and (ii) contribution to contingency reserve to 86.97 two months Amount of security deposits from (iii) 694.02 consumers 5 Sub-total (4(i)+4(ii)+4(iii)) 1528.51 6 Net working capital requirement (3-5) 241.58 7 Rate of interest % 9.25% 8 Interest on working capital (6*7) 22.35

5.20.5. The Petitioner requests the Hon’ble Commission to approve the interest of working capital as provided above for FY 2021-22.

5.21. Non-Tariff Income

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5.21.1. The Petitioner has projected the Non-Tariff income taking the amount estimated in Annual performance review of FY 2020-21 and then escalating the same by 20%. However, the deemed rebate on power purchase has been considered as 1% of the total power purchase cost projected by the Petitioner. Also, miscellaneous recoveries has been reduced to 85% of the projected figures for FY 2020-21. It gives a net increase of ~10% to the non-tariff income of the petitioner. The below table demonstrates the other non- tariff income for FY 2021-22:-

Table 101: Non-tariff income for ARR (in INR Crore) FY 2021-22 Particulars (Projection) Base Non-tariff Income 421.42 Rate of Increase 10% Increase in Non-tariff Income 41.03 Sub-total 462.46 Grant from Government Less:-Interest on funding of DPS 83.03 Total non-tariff income 379.43

5.21.2. The Petitioner requests the Hon’ble Commission to approve the above-mentioned amount towards non-tariff income for the next control period.

5.22. Revenue from Sale of Power at Existing Tariff

5.22.1. Revenue from Sale of Power at Existing Tariff for the Petitioner is given in table below-

Table 102: Revenue from sale of power at existing tariff for FY 2021-22 (in INR Crore)

Sales Total (Rs Category of Consumers (MUs) Crores) Domestic 8198.34 5469 Kutir Jyoti 1280.61 794 DS I Rural 3479.31 2252 DS II Demand Based 3438.34 2423 DS III 0.08 0.08 Non_Domestic Service 1333 1204 NDS I - Metered Now Demand Based 337.95 239 NDS II - Demand Based 995.31 965 Contract Demand <0.5 kW 6 5 Contract Demand >0.5 kW 989 960 Street Light Services 70 70 SS Metered 18.54 14 SS Unmetered 51.65 56 Irrigation & Allied Services 852 812

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Sales Total (Rs Category of Consumers (MUs) Crores) IAS I 718.06 699 IAS II 133.72 112 Public Service Connections 174.32 147 Public Water Works 91.77 88 Har Ghar Nal 82.59 59 Low Tension Industrial Services 494.86 456 LTIS I (0-19 kW) 373.02 332 LTIS II (>19 kW - 74 kW) 121.84 124 High Tension 2305.27 1,837 HTS I - 11 kV 721.24 676 HTS II - 33 kV 511.53 475 HTS III -132 kV 236.51 183 HTS IV - 220 kV HTSS 836 504 Railway Traction Services Nepal Total 13428.07 9994.93

5.22.2. The Petitioner requests the Hon’ble Commission to approve revenue from existing Tariff as INR 9994.93 Crore for FY 2021-22.

5.23. Annual Revenue Requirement for FY 2021-22

5.23.1. The Annual Revenue Requirement for FY 2021-22 is given in the table below-

Table 103: Net ARR for 2021-22 (in INR Crore)

Sl. No. Particulars FY 2021-22 Net Power Purchase Cost including 1 Transmission Charges, deemed rebate and 8,970.16 Treatment of Surplus Power 2 O&M Expenses i) Employee Cost 675.24 ii) R&M expenses 210.83 iii) A&G expenses 154.69 3 Share of Holding Company expenses 27.50 4 Depreciation 238.61 5 Interest and Finance charges 344.29 6 Interest on working capital 22.35 7 Return on equity 283.24 8 Interest on security deposit 30.85 9 Total Revenue Requirement 10,957.77 10 Less: Non-tariff income 379.43 11 Aggregate Revenue Requirement 10,578.34

5.24. Net Gap at Existing Tariff

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5.24.1. The petitioner requests the Hon’ble commission to approve unrecovered gap for FY 2019-20 as calculated in the table below.

Table 104: Unrecovered Gap for FY 2019-20 along with carrying cost (in INR Crore)

Particular Amount (Rs. Cr) Carried Forward Gap/Surplus 776.44 Interest for FY 2019-20 (SBI MCLR+150 points @ 8.85%) 34.36 for half year Interest for FY 2019-20 for FY 2020-21 (MCLR +150 66.00 Points @ 8.5%) for 1 year Interest for FY 2019-20 for FY 2021-22 (MCLR+150 33.00 Points @ 8.5%) for 6 months Total Gap with Carrying cost 909.79

5.24.2. The petitioner has not considered unrecovered gap for APR of FY 2020-21 while computing net revenue gap for FY 2021-22. The net revenue gap at existing tariff for FY 2021-22 is as below.

Table 105: Net revenue gap at existing tariff for FY 2021-22

S. No. Particulars Amount (INR Crore) 1 Aggregate Revenue Requirement (ARR) 10,578.34 2 Less : Revenue from Existing Tariff 9,994.93 3 Subsidy 715.24 4 Gap / (Surplus) (131.83)

Table 106: Cumulative revenue gap/(surplus) till FY 2021-22

Particulars Amount (INR Crore) Unrecovered Gap for FY 2019-20 along with carrying 909.79 cost Net revenue gap at existing tariff for FY 2021-22 -131.83 Gap / (Surplus) 777.96

5.24.3. It can be observed that a tariff hike is required for meeting the shortfall for FY 2021-22 along with the carried forward revenue gap for FY 2019-20. Considering the net gap for the state of Bihar and with the proposed tariff structure (detailed in chapters following), the Petitioner is proposing an overall tariff hike of 9.22%.

5.25. Revenue from Sale of Power at Proposed Tariff

5.25.1. Revenue from sale of power at proposed tariff for FY 2021-22 is given in table below

Table 107:Total revenue from sale of power at proposed tariff for FY 2021-22

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Revenue at Category proposed Tariff Domestic 5,952.09 Non Domestic 1,314.93 SS 76.43 IAS 886.67 LTIS 497.72 PWW Incl. HGY 160.39 HTS I 738.05 HTS II 512.08 HTS III 194.13 HTSS 550.45 Railway Grand Total 10,882.85

5.26. Revenue gap for FY 2021-22 at proposed tariff

5.26.1. The Petitioner is estimating Annual Revenue Requirement for FY 2021-22 on 100% cost coverage basis.

Table 108: The revenue gap at proposed tariff for FY 2021-22

Amount S. No. Particulars (INR Crore) Aggregate Revenue 10,957.59 1 Requirement (ARR) for FY 2021-22 Less : Non Tariff Income 379.43 2 True Up gap for FY 2019-20 776.44 3 Carrying Cost 133.35 Less: Revenue Gap to be 5 treated as Regulatory Surcharge Less : Revenue from Proposed 6 10,882.85 Tariff 7 Subsidy 715.24 8 Gap / (Surplus) (110.05)

5.26.2. The Petitioner requests the Hon’ble commission to consider the above presented figures for determination of Tariff for FY 2021-22.

5.26.3. It is suggested that the remaining gap for the Petitioner may be kept as it is and be dealt at the time of truing-up of FY 2021-22 based on actual expenses and income of the Petitioner.

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6. Voltage-wise cost of supply 6.1. Preamble

6.1.1. This section deals with the voltage wise cost of service by the Petitioner for the FY 2021-22.

6.2. Background

6.2.1. The Commission had determined the Multi Year Aggregate Revenue Requirement (ARR) for the third control period FY 2019-20 to FY 2020-21 in the order dated 25th February, 2019. 6.2.2. The Petitioner has considered distribution losses @22% for FY 2021-22.

6.3. Methodology adopted for Computation of Voltage wise Cost of Supply

6.3.1. The Hon’ble APTEL has proposed a simple methodology to functionalize use of Cost of Supply model. The APTEL notes that identical consumers connected at different nodes of distribution system need not to be differentiated. In addition, it is adequate to determine voltage-wise cost of supply taking into account the major cost elements which would be applicable to all the categories of the consumers connected at the same voltage level at different locations in the distribution system. 6.3.2. In the method suggested by the Hon’ble APTEL, there are five major components to arrive at the voltage wise cost of supply. These elements are: • Technical losses at each voltage level of the network: This value of the technical losses is found by the field studies. Sampling of the feeders which are representative of the consumers in the system will help in identifying the technical losses at each voltage levels. The APTEL recognizes the difficulty in collecting data for technical loss at 11 kV and LT level, hence the suggestion to compute losses using maximum possible representative feeders for various consumer categories at respective voltage levels. • Commercial losses at each voltage level of the network: The commercial loss of the system is the difference between approved loss in the ARR and the total technical loss computed from system study. This difference is to be apportioned according to the sales in each voltage level to arrive at the commercial loss at each voltage level. • Voltage wise sales: The energy sale at a particular voltage level is the sum of energy sold for all the categories of consumers connected at the said voltage level. Due to its share of sales in total sales, the consumers of the 132/220 kV network will be apportioned a share of the commercial losses. The Hon’ble APTEL recognizes that in reality, there may be minimal technical losses at that level and very low probability of commercial losses. However, the APTEL is of the opinion that the consumers at 132/220 kV, being a part of the distribution system will bear these apportioned losses.

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• Power Purchase Cost: The power purchase cost is the cost of energy purchased for sustaining the energy sales at each voltage level. This power purchase units for each voltage level is arrived by finding the energy input at each voltage level and adding the losses (technical and commercial) for the same voltage level and upstream. The energy input at each voltage level is the sum of the sales at the voltage level and the losses for the corresponding voltage level. • Network Cost: The network costs are the costs like O&M, interest and finance charges, depreciation, return on equity etc. These costs are a part of the ARR which in turn provides the average cost of supply. Thus, the network cost is essentially the difference between the ARR value and the power purchase cost. The APTEL has suggested apportioning these costs according to the sales volume in each of the voltage level. 6.3.3. The above elements will help to establish the voltage wise Cost of Supply. Due to the methodology applied to apportion losses in the various voltage levels, all the consumer categories at a particular voltage level will have same cost of supply. In this regard, APTEL has noted that refinements in the methodology may be done when more data becomes available.

6.4. Determination of Voltage wise Losses

6.4.1. Transmission & Distribution losses in a system are comprised of two separate components - Technical losses and Commercial losses. • Technical losses occur naturally and consist mainly of power dissipation in electricity system components such as transmission and distribution lines, and transformers. • Commercial losses are caused by actions external to the power system and consist primarily of electricity theft, non-payment by customers, and errors in accounting and record-keeping. Since the rationale behind these two components is quite distinct, quantifying them separately is imperative for arriving at meaningful conclusions. 6.4.2. At each voltage level, the Technical losses consist of two major components: Transmission losses which refer to the losses in the current carrying wires; and Transformation losses which refer the losses incurred during the voltage transformation in the system. Aggregating the losses in these two elements at each voltage level would give the technical loss at that level. The losses remaining would be the commercial losses.

6.5. Information required for arriving Voltage Wise Cost of Supply

6.5.1. Following is the list of details required in order to carry out voltage wise cost of supply: • Voltage wise technical losses • Overall T&D losses

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• Voltage wise energy sales • Power Purchase Cost • Network Costs 6.5.2. It is submitted that the Petitioner has computed voltage wise losses based on certain assumptions after observing the sample feeder data available with DISCOMs 6.5.3. The Petitioner has computed voltage wise cost of supply in view of distribution loss percentage approved by the Hon’ble commission for FY 2021-22.

Table 109: Voltage wise Technical losses considered for FY 2021-22

Voltage Level S. No. Technical loss (%) Cumulative loss (%) (kV) 1 220/132 3.00% 3.00% 2 33 4.91% 7.76% 3 11 5.98% 13.28% 4 0.4 8.72% 22.00%

6.5.4. The Petitioner has arrived at voltage wise sales considering the projected sale of power for the FY 2021-22, across various categories at the respective voltages mentioned in the table below

Table 110: Classification of Categories on the basis of Voltage of power supply

S. No. Voltage Level Categories

1 220/132 kV HTS-III, Railways, Nepal 2 33 kV HTS-II, HTSS

3 11 kV HTS-I 4 LT Domestic, Non Domestic, Agriculture and Others

6.5.5. The Petitioner further submits that the voltage wise cost of supply study is based on the sample data certain parameters such as total loss, energy input etc.

6.5.6. Voltage Wise Technical Loss: The Petitioner submits that it has taken suitable assumptions to arrive at the loss at 220 kV and 132 kV to arrive at the audited loss of BSPTCL. It has considered the same loss as approved by Commission for FY 2021-22 for BSPTCL @3.00%

6.6. Methodology adopted for determination of Cost of Supply

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6.6.1. Due to lack of data for segregation of technical and commercial losses, it is not feasible to fix the technical and commercial loss levels within proposed loss levels. 6.6.2. In order to understand component of technical losses in total T&D loss, technical loss at each voltage level need to be grossed. Following is the total technical loss at each voltage level and cumulative losses at subsequent voltage levels.

Table 111: Voltage wise Technical losses considered for the FY

Voltage Level S. No. Technical loss (%) Cumulative loss (%) (kV) 1 132 3.00% 3.00% 2 33 4.91% 7.76% 3 11 5.98% 13.28% 4 0.4 8.72% 22.00%

6.6.3. Following is the apportionment of technical losses to the voltage wise sale.

Table 112: Apportionment of technical losses to voltage wise sale for FY 2021-22

Voltage Energy Energy Technical S. Level Technical Cumulative Sale input (MU) loss No. losses (%) loss (%) (kV) (MU) (MU)

1 220/132 3.00% 3.00% 236.51 243.82 7.31 2 33 4.91% 7.76% 1,347.53 1,460.93 113.41 3 11 5.98% 13.28% 721.24 831.67 110.43 4 0.4 8.72% 22.00% 11,122.80 14,260.00 3,137.20 Total 13,428.07 16,796.42 3,368.36

6.6.4. Commercial losses (difference of total losses and grossed up technical losses) shall be apportioned pro rata to energy sales at each voltage level.

Table 113: Apportionment of Commercial losses to voltage wise sale for FY 2021-22

Energy Input Voltage S. Energy Technical Sales + Tech Commercial at State Level No. sale(MU) loss(MU) Loss (MU) Loss (MU) Periphery (kV) (MU) 1 220/132 236.51 7.31 243.82 16.76 260.58 2 33 1,347.53 113.41 1,460.93 95.48 1,556.42 3 11 721.24 110.43 831.67 51.11 882.78 4 0.4 11,122.80 3,137.20 14,260.00 788.14 15,048.14 Total 13,428.07 3,368.36 16,796.42 951.49 17,747.91

6.6.5. The Projected Power Purchase Cost (including PGCIL, POSOCO & ERLDC transmission costs) of the Petitioner for the Control Period is provided below:

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Particulars FY 2021-22

Net Power Purchase (MU) 20,659.22 Power Purchase Cost including PGCIL Charges (Rs. Crore) 9,363.77 Average Power purchase Cost (Rs./kWh) 4.53

6.6.6. Following is the allocation of power purchase cost to the total energy sales.

Table 114: Allocation of power purchase cost to the energy sales for FY 2021-22

Average Cost of Power Voltage Energy Input at power Power Sl. Energy Sale per unit sale Level State purchase Purchase No. (MU) of Energy kV periphery(MU) cost Cost (INR Cr) (INR/kWh) (INR/kWh)

1 220/132 236.51 260.58 4.53 118.11 4.99

2 33 1,347.53 1,556.42 4.53 705.44 5.24 3 11 721.24 882.78 4.53 400.12 5.55

4 0.4 11,122.80 15,048.14 4.53 6,820.55 6.13

Total 13,428.07 17,747.91 8,044.22 5.99

6.6.7. The details of fixed distribution costs for the control period are provided below, which are excluding Power Purchase and PGCIL charges.

Table 115: Allocation of Network Cost for the FY 2021-22

Sl. FY 2021-22 Particulars No (INR Cr)

1 Employee Cost 675.15 2 R&M costs 210.83 3 A&G expenses 154.62 4 Holding Company 27.50 5 Depreciation 238.61 6 Interest & Finance Charges 344.29 7 Interest on Working Capital 22.34 Interest on Security Deposit 30.85 8 RPO fund 9 Return on Equity 283.24 10 Less: IDC 11 Total (1 to 7) 1987.44 12 Transmission cost 1095.25 13 Total cost 3082.68

6.6.8. Further, the Petitioner has worked out the voltage wise cost of per unit supply based on the methodology followed by the Hon’ble Commission in the tariff order dated 20th March 2020. Accordingly, the Petitioner has apportioned the network cost of Rs. 3082.68 Crore arrived in

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the above table among the consumers of various voltage level i.e., 220/132 kV, 33 kV, 11 kV and LT levels, equitably on pro-rata basis as detailed below:

Table 116: Voltage-wise Allocation of Network Cost

SI.No. Voltage Energy Sale (MU) Energy Sales + Voltage wise Network cost per Level Technical loss + Network Cost (Rs. unit of energy Comml. Loss (MU) Cr) sale (Rs. Cr)

1 220/132 236.51 260.58 45.26 1.91 2 33 1,347.53 1,556.42 270.34 2.01 3 11 721.24 882.78 153.33 2.13 4 0.4 11,122.80 15,048.14 2,613.75 2.35 Total 13,428.07 17747.91 3082.68 2.30

Table 117: Cost of Supply at different Voltage Levels for FY 2021-22

Cost of Network Cost of power S. No. Supply Voltage cost supply purchase (INR/kWh) (INR/kWh) (INR/kWh)

1 220/132 4.99 1.91 6.91 2 33 5.24 2.01 7.24 3 11 5.55 2.13 7.67 4 LT 6.13 2.35 8.48

6.6.9. The Hon’ble Commission is requested to approve the Voltage wise cost of supply as projected by the Petitioner for the FY 2021-22.

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7. Miscellaneous and General Charges 7.1. Schedule of Miscellaneous and General Charges 7.2. SLC charges

7.2.1. Application fee for new connection/ reduction of load/ enhancement of load/ request for permanent disconnection/ request for tatkal connection:

7.2.1.1. The following application fees will be charged for requesting a new connection/Tatkal connection/a reduction of load/enhancement of load/mutation of name/permanent disconnection

Table 118: Application fee

S. No. Category / class Rate (INR) 1 Kutir Jyoti 20.00 2 LT Single phase except Kutir Jyoti 75.00 3 LT Three phase 200.00 4 LT Industrial 300.00 5 HT Connection 750.00 6 For tatkal connection Two (2) times the normal rate 7.2.2. Testing / Inspection of consumer’s installation: 7.2.2.1. The following fees will be applicable for testing or inspection of customer’s installation:

Table 119: Meter testing fee

S. No. Category / class Rate (INR)

1 Initial Test / Inspection Free of cost

2 Subsequent test and inspection necessitated by Rs. 100.00 for single phase connection fault in installation or by not complying with Rs. 200.00 for three phase LT connection terms and conditions of supply Rs. 800 for HT connection.

7.2.3. Meter Testing Fee:

7.2.3.1. The meter testing fee at the following rates will be charged from the consumers opting to provide their own meters

Table 120: Meter testing fee for own installation

S. No. Category / class Rate (INR)

1 Single Phase meter (L.T.) 100.00 2 Three Phase meter (L.T.) 200.00 3 Three Phase meter with CT 300.00 4 Tri-vector and special type meter 1,800.00 5 33 kV or 11 kV metering equipment 5,000.00

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S. No. Category / class Rate (INR)

6 132 kV/220 kV metering equipment 8,000.00 Note: a. No meter testing fee shall be charged from the consumers if the meter has been provided by the licensee. b. If the meter is tested at third party testing laboratory at the request of the consumer then the fees charged by the testing laboratory will be payable by the consumer.

7.2.3.2. Consumer requiring hard copy of the MRI/RMR report of their Energy meter have to pay an upfront charge of INR 1000 per report. The Petitioner would like to emphasize that these proposed charges are nominal as compared to INR 5000 plus GST@18% charged by CPRI.

7.2.4. Meter Testing fees for Bi-directional meters:

7.2.4.1. The state government in order to encourage renewable energy generation has incentivized rooftop solar generation. As a result, many new consumers have begun installing Solar PV panels on their premises. Such consumers are needed to install bidirectional or net meter if they wish to sell power to the grid and at the same time draw power from the grid. 7.2.4.2. Bi-directional meters can be installed on the consumer premises by the licensee or the consumer can purchase the same and get it installed by the licensee at his/her premises. Before the installation of meter, it needs to be tested in a lab. The testing of the meter can be conducted either by licensee or the consumer can get it tested by a third party. For getting the meter tested by the licensee, the consumer needs to pay the meter testing fee as per the following rates.

S.No. Category Rate (INR) 1 Single Phase bi-directional meter ₹ 200.00 2 Three phase LT CT Operated Bidirectional meter ₹ 800.00 2 Three Phase meter (L.T.) Bidirectional meter ₹ 400.00 3 Three Phase meter with CT Bidirectional meter ₹ 600.00 4 Tri-vector and special type Bidirectional meter ₹ 2000.00 3 Three phase HT TOD Bidirectional ₹ 1,100.00

Note: a. No meter testing fee shall be charged from the consumers if the meter has been provided by the licensee. b. If the meter is tested at third party testing laboratory at the request of the consumer then the fees charged by the testing laboratory will be payable by the consumer

7.2.4.3. Such testing charges shall be applicable only in case the consumer/ Generator requests the licensee for such services.

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7.2.4.4. Consumer requiring hard copy of the MRI/RMR report of their Energy meter have to pay an upfront charge of INR 1000 per report. The Petitioner would like to emphasize that these proposed charges are nominal as compared to INR 5000 plus GST@18% charged by CPRI. 7.2.5. Removing / Re-fixing / Changing of Meter / Meter Licensee at consumer’s request: 7.2.5.1. The following fees will be charged from the consumers opting to remove or re-fix or change their meter:

Table 121: Removal/ refixing/ change of meter fee

S. No. Category / class Rate (INR)

1 Single Phase meter 200.00 2 Three Phase meter 400.00 Cost of material, as 3 Three Phase meter with CT 500.00 required, will be borne by 4 Trivector and special type meter 600.00 the consumer 5 High tension metering equipment 1,200.00

7.2.6. Reconnection/ Disconnection Charge: 7.2.6.1. The following reconnection/ disconnection charges will be charged from consumers: Table 122: Reconnection charges

S. No. Category/class Rate (INR)

1 Single Phase supply, LT 100.00 2 Three Phase supply other than LT industrial 200.00 3 Three Phase LT industrial supply 900.00 4 HT supply 3,000.00

7.2.7. Supervision, Labour and Establishment charge for service connection: 7.2.7.1. The following supervision, labour and establishment fees will be charged from consumers for service connections:

Table 123: Supervision, labour and establishment charges for service connection

S. No. Category/ Class Rate (INR)

1 Single Phase LT 400.00 2 Three Phase LT other than industrial 900.00 3 Three Phase industrial 1,500.00 4 HT As per approved estimate 5 For tatkal connection Two (2) times the normal rate

7.3. Security Deposit

7.3.1. The consumer (except Kutir Jyoti rural and Kutir Jyoti urban) shall pay initial security deposit equivalent to the estimated energy charges including fixed / demand charges for a period of

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two months or as per the provisions of Bihar Electricity Supply Code notified by the Commission. 7.3.2. All Central Government and State Government departments are exempted from payment of security deposit. However, all public sector undertakings and local bodies shall pay security deposit, as applicable. 7.3.3. The amount of security deposit obtained from the consumer is liable to be enhanced every year, in April-May of next year on the basis of consumption during previous years or as specified in clause 7.15 of Bihar Electricity Supply Code. In default of payment of additional security deposit, wherever payable after review, the service line may be disconnected on serving thirty days’ notice and connection thereafter can be restored only if the deposit is made in full along with the prescribed reconnection charges and surcharge @1.5% per month or part thereof on the amount of outstanding. 7.4. Interest on Security Deposit

Security deposit made by a consumer shall bear interest as specified in Bihar Electricity Supply Code, payable at Bank rate notified by RBI from time to time. The interest will be calculated for full calendar months only and fraction of a month in which the deposit is received or refunded, shall be ignored. The interest for the period ending 31st March shall be adjusted and allowed to the consumer in the energy bill for May issued in June and in subsequent month(s), if not adjusted completely against the bill for the month of May.

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8. Wheeling and Open Access Charges

8.1. Background

8.1.1. The Petitioner submits that for the purpose of open access on distribution network, determination of wheeling losses and wheeling charges are essential. Further as the consumer is deemed to be moving out of system, the revenue loss from such consumers is recovered through Cross Subsidy Surcharge and Additional Surcharge, as the case may be.

8.2. Wheeling Charges

8.2.1. It is submitted that till date complete segregation of accounts between Wheeling and Retail Supply function has not yet taken place. Thus, ARR proposals for Wheeling and Retail Supply function is submitted on the basis of an allocation statement to be prepared by the Distribution Licensee based on their best judgment and in line with the approach followed by the Hon’ble Commission in its Previous Tariff Orders. 8.2.2. The Licensee, in the instant Petition, has followed the following allocation for calculating segregating its wire and supply business and the total costs (net ARR) of both the DISCOMs are segregated into wire business and retail supply business.

Table 149: Segregation of Wires and Retail Supply Costs

Assumption 33kV Wire cost 11kV Total Sl. Retail Retail BIHAR Fixed Wire Retail Wire Wire No. supply supply Cost Business Supply business business business business Power purchase 0% 100% - - 1 cost 16,336.08 8,168.04 8,168.04 Treatment of 2,900.66 0% 100% - -

Surplus Power 1,450.33 1,450.33 PGCIL & other 1,004.17 0% 100% - 502.09 - 502.09 2 transmission charges State Transmission 2,028.24 0% 100% - - 3 charges 1,014.12 1,014.12 4 O&M Expenses - - - - - i) Employee Cost 1,178.95 60% 40% 353.68 235.79 353.68 235.79 ii) R&M expenses 429.93 90% 10% 193.47 21.50 193.47 21.50 iii) A&G expenses 363.57 50% 50% 90.89 90.89 90.89 90.89 Share of Holding 53.66 60% 40% 16.10 10.73 16.10 10.73 5 Company expenses 6 Depreciation 499.85 90% 10% 224.93 24.99 224.93 24.99 Interest and 7 727.13 90% 10% 327.21 36.36 327.21 36.36 Finance charges Interest on working 8 56.20 10% 90% 2.81 25.29 2.81 25.29 capital 9 Return on equity 576.85 90% 10% 259.58 28.84 259.58 28.84 10 Income Tax - 0% 100% - - - - Interest on security 11 50.54 0 100% - 25.27 - 25.27 deposit

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Assumption 33kV Wire cost 11kV Total Sl. Retail Retail BIHAR Fixed Wire Retail Wire Wire No. supply supply Cost Business Supply business business business business 12 Bad debts (if any) - 0% 100% - - - - Contingency 13 - 0% 100% - - - - reserves (if any) Deposit for RPO - - - - - Obligation Total Revenue 14 Requirement 20,404.52 1,468.68 8,733.58 1,468.68 8,733.58 Less: Non-tariff 15 713.87 10% 90% 35.69 321.24 35.69 321.24 income Aggregate 16 Revenue 19,690.65 1,432.98 8,412.34 1,432.98 8,412.34 Requirement

1.1.4. The wheeling charges have been computed on the basis of projected costs of the Petitioner for its distribution wire business and the total energy expected to be wheeled through their distribution network. The average per unit wheeling charge is calculated in the table below

Table 150: Wheeling Charges at 33 kV for FY 2021-22

Sl. No Particulars Unit FY 2021-22 1 Energy Input into 33 kV System MUs 31,608.29

2 Total Distribution Cost Rs Crores 2,865.97

Distribution cost for 33 kV voltage levels (assuming 1,432.98 3 50% of item 2) Rs Crores

4 Wheeling charges for 33 kV voltage level (item 3÷1) Paisa/kWh 0.45

8.2.3. The wheeling cost has been computed for 11 kV level as below

Table 151: Wheeling charges at 11 kV for FY 2021-22

Sl. No. Particulars Unit FY 2021-22 1 Energy input into 33 kV system MU 31,608.29 2 Losses in 33 kV(5%) % 1,516.47 3 Energy sales in 33 kV system as MU 71.46 approved by the Commission 4 Energy input into 11 kV system [1- MU 30,020.36 (2+3)] 5 Total distribution cost Rs. Cr 2,865.97 6 Distribution cost for 11 kV voltage levels Rs. Cr 1,432.98 (assuming 50% of item 5) 7 Wheeling charges for 11 kV voltage Ps/ kWh 0.48 level (item 6÷4)

8.3. Cross Subsidy Surcharge

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8.3.1. The open access consumers are liable to pay cross subsidy surcharge to compensate the distribution utility for any loss of revenue due to shifting of its consumer to the open access system. The cross subsidy surcharge for open access consumers for the 3rd Control Period is calculated as per the following recommended formula in the BERC MYT Distribution Tariff Regulations, 2018.

“S= T – [C/ (1-L/100) + D+ R] Where S is the surcharge T is the tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation C is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation D is the aggregate of transmission, distribution and wheeling charge applicable to the relevant voltage level L is the aggregate of transmission, distribution and commercial losses, expressed as a percentage applicable to the relevant voltage level R is the per unit cost of carrying regulatory assets.”

8.3.2. The weighted average cost of power purchase for both DISCOMs is shown below:-

Table 152: Power purchase cost for FY 2021-22

Particulars FY 2020-21 Gross power purchase (MU) 38,780.02 Less:-PGCIL loss (MU) 522.19 Net power purchase (MU) 38,257.82 Power purchase cost including PGCIL 17,340.25 charges Average power purchase rate 4.53

Table 152: Intra-state Transmission Charge for FY 2021-22

Particulars FY 2020-21 Intra-state Transmission Charge (INR Cr.) 2,028.24 Energy available at State Transmission Periphery 38,257.82 (MU) Transmission Charge (Rs./kWh) 0.53

Calculation of Cross Subsidy Surcharge: -

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S = T–[C(1-L)/100)+D+R] Table 153: Cross Subsidy Surcharge for FY 2021-22

Cross Subsidy Surcharge (Rs)

Wt. Propos Intra-state 20% of Voltage avg. Transmissi Sr. No ed Transmission 33 kV 11 kV Value applicabl CSS Level Cost on Charge Tariff Loss e tariff of PP

1 132 kV 132 kV 8.76 4.53 3.00% 0.53 - - 4.43 1.75 2 33 kV 33 kV 10.08 4.53 3.00% 0.53 0.45 - 5.27 2.02

3 11 kV 11 kV 10.29 4.53 3.00% 0.53 0.45 0.48 5.32 2.06

4 HTSS HTSS 6.63 4.53 3.00% 0.53 0.45 - 1.81 1.33

8.3.3. The Revised Tariff Policy suggest that the cross subsidy shall not increase 20% of applicable tariff to the category of consumers seeking Open Access. The cross subsidy surcharge for 132 kV, 33 kV, 11 kV and HTSS category is shown above and requested to approve accordingly.

8.4. Additional Surcharge 8.4.1. In order to supply seamless power to the consumers as per the demand projection under the Power for All scheme, the Bihar DISCOMs tied up huge quantum of PPAs. However, the demand has not increased as per the projection as well as due to the movement of consumers from being a consumer to the DISCOM to shifting to Open Access, the DISCOMs are currently in a power surplus situation. This has led to unnecessary fixed cost burden on the DISOMs which is ultimately being passed on the consumer. In regard to recovering a part of the stranded costs of the DISCOMs, the DISCOMs are hereby proposing the Additional surcharge to be recovered by Open Access consumers for FY 2021-22. Table 153: Additional Surcharge for FY 2021-22

OA Quantum Bihar MW Total 148 Total Stranded Power (MU) 1296 Total Surrendered Power (FY 19-20) (MU) 2984 Projected Surplus in FY 2021-22 (MU) 5750 Power attributed to OA (MU) 1296 Projected Fixed Cost (Rs/ MW) (FY 2021-22) 8.99 Total Stranded Fixed Cost (Rs. Crore) 133 Stranded Fixed Cost per unit 1.03 Transmission Charge (Rs./unit) 0.53 Additional Surcharge (Rs./unit) 0.50

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8.5. Parallel Operating Charges

8.5.1. The connectivity of CPP (Captive Power Plants) to Grid or State transmission system shall be governed by the connection conditions stipulated under the State Grid Code and Connectivity Regulations of Central Electricity Authority notified in accordance with sub-section (b) of Section 73 of the Act. 8.5.2. In view of this, the petitioner is hereby proposing Parallel Operation Charges as a part of Other charges for Open access consumers to be applicable for parallel operation of the CPP with the grid separately. Table 153: Parallel Operation Charge for FY 2021-22

Parameter Total Connected Demand (kW) 21012203.21 Overall Demand Charges (Rs. Crore) 2,517.30 POC Charge (Rs Crore./month) 209.78 POC Charges (Rs./kW/month) 99.84

8.5.3. The Hon’ble Commission is therefore requested to approve the POC charges of Rs. 100/kW/month to captive open access consumers

8.6. Reactive Energy charges

8.6.1. The open access consumers should pay a reactive energy charge to Transmission and Distribution companies as the case may be for drawl/ injection of reactive energy. DISCOM proposes the reactive charges of 06 Paisa/ kVAR for the FY 2021-22.

8.7. Standby Charges

8.7.1. As per BERC open access regulations “20 A. Standby Power In case of outage of a power plant supplying power to an open access customer, the licensee will, on request, provide standby supply to meet the requirement of load catered through open access. Such standby supply will be provided by the licensee at day ahead request from the open access customer. The open access customer will, for that supply, be liable to pay charges under tariff for temporary connection to that category of consumer.” 8.7.2. The Hon’ble Commission has approved the stand-by charges for drawal of power by open access customer from distribution licensees in accordance with BERC (Term and Conditions of Intra-State Open Access) Regulations 2018 as below: o In cases of outages of generator supplying to open access customer under open access, stand-by arrangements shall be provided by the distribution licensee for a

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maximum period of 42 days in a year subject to the load shedding as is applicable to the embedded consumer of the licensee at a charge under Temporary connection tariff for the category of consumer as determined by the Commission from time to time. o Provided that such charge shall not exceed 125% of the normal tariff for that category of consumers. o Provided that in cases where temporary rate of charge is not available for that consumer category the distribution licensee shall charge 125% of the normal tariff for the category of consumers. o Provided also that open access customers would have the option to arrange stand-by power from any other source.

8.7.3. The Hon’ble Commission is requested to approve the same in line with the regulations

8.8. Congestion Charges

8.8.1. As per regulation 25 of the BERC open access regulations, 2018 “25. Other Charges In addition to the above charges, the regulatory charges, congestion charges and any other charges imposed by Central Commission and/or State Commission shall be payable by the open access customers.” 8.8.2. In view of the same the Hon’ble Commission is requested to determine and approve congestion charges for Open Access Consumers in order to mitigate the issues related to transmission and distribution of power.

8.8.1. The Hon’ble Commission is requested to approve all the open access charges, Cross Subsidy Charges and other charges as submitted by the Petitioner.

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9. Proposed Tariff schedule for FY 2020-21 9.1. Roadmap for reduction of Cross Subsidy Surcharge

9.1.1. Section 8.3 (2) of the Tariff Policy 2016 specifies that: “For achieving the objective that the tariff progressively reflects the cost of supply of electricity, the Appropriate Commission would notify a roadmap such that tariffs are brought within ±20% of the average cost of supply. The road map would also have intermediate milestones, based on the approach of a gradual reduction in cross subsidy”. 9.1.2. The Tariff Policy provides that SERCs may notify a roadmap such that tariffs are in ±20% of ACoS. The First proviso to para 8.5.1 of Tariff Policy 2016 also specifies that Cross Subsidy Surcharge (CSS) should be capped at 20% of the tariff applicable to the category of the consumers. The Petitioner aims at gradual reduction of cross subsidy surcharge in line with National Tariff policy.

9.2. Simplification of tariff structures for electricity consumers in Bihar

9.2.1. The two Distribution Licensees in Bihar have taken initiatives in the past couple of years to undertake measures to simplify the tariff structure, under the guidance of the Hon’ble Commission. Key measures undertaken have now resulted in the following: i. Simplification of the tariff structure, ii. Bringing in a progressive tariff structure that helps promote efficiency, and iii. Rationalization of electricity tariffs. 9.2.2. For this year as well, the power distribution companies of Bihar have kept the following objectives in mind while proposing the tariff structure for FY 2021-22. • Ensuring that an adequate balance is maintained between the interest of consumers and the distribution utility; • Enabling consumers to efficiently and effectively plan their expenditure on electricity; • Ensuring that tariffs progressively reflect the prudent cost of electricity supply to the consumers, and • Incentivizing the consumer for efficient utilization of electricity. 9.2.3. The Distribution Licensee have followed the given below key guiding principles for proposing the tariff structure and tariffs which would be applicable for the FY 2021-22. i. Merging or elimination of category / sub-category has been done based on relevance, and whether the categorization is still valid in the current scenario; ii. Ensure that each major tariff category has a maximum of 3 energy slabs, to maintain simplicity of structure;

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iii. Introduction of two part tariff for all metered consumer categories; iv. Undertaking an action plan with target timelines for phasing out of unmetered consumers and therefore of the unmetered tariff sub-categories, through large targeted metering drives over the next twelve to eighteen months; v. Preserving kVAh based billing for all consumer categories wherever feasible. 9.2.4. Based on the above principles, the following key changes have been proposed in the tariff structure and schedule for the ensuing year. i. Simplification of Domestic Tariff structure ii. Incentivizing increased consumption through improving of load factor iii. Incentive to HT consumers at higher voltage levels iv. Revision of ToD Tariff structure v. Revision in Load category of LTIS-II category consumers vi. Incentivizing uptake of Smart Meters.

Simplification of Tariff structure for Domestic consumers

9.2.5. In order to simplify the tariff structure of Domestic category consumers and to rationalize tariff for consumers with higher consumption, the Petitioner hereby proposes to keep only three tariff slabs in the DS-I and DS-II category consumers. The highest slab in the current tariff structure is proposed to be merged with the preceding slab. The tariff structure of the preceding lower slab will not be affected due to the merging with the highest slab except for the uniform tariff increment proposed in the existing tariff structure. The intent is to gradually further simplify the tariff slabs and encourage increased electricity consumption.

Revised tariff structure Proposed tariff structure Existing tariff structure Category / (without tariff hike) for FY 2021-22 Slab Fixed Energy Fixed Energy Fixed Energy Rs/kW/month Rs/unit Rs/kW/month Rs/unit Rs/kW/month Rs/unit DS-I 0-50 units 20 6.05 20 6.05 22 6.61 51-100 units 20 6.30 20 6.30 22 6.88 101-200 units 20 6.60 Above 200 20 6.60 22 7.21 20 6.95 units DS-II 0-100 units 40 6.05 40 6.05 44 6.61 101-200 units 40 6.85 40 6.85 44 7.48 201-300 Units 40 7.70 Above 300 40 7.70 44 8.41 40 8.50 Units

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Incentivizing increased consumption through improving of load factor for HT consumers

9.2.6. To promote efficiency in the system and incentivize electricity consumption, the Petitioner hereby proposes to introduce Load factor incentives for HT category consumers (excluding HTSS consumers) in the Retail tariff of FY 2021-22. With an increased utilization of the system vis-à-vis the existing connected load, the Petitioner envisages that the effective cost of supply would also gradually go down.

9.2.7. In the proposed incentive, the HT Consumers in FY 2021-22 would be incentivized for improved load factor utilization on a monthly basis, through a rebate on their energy charge. Accordingly, the following incentive structure is proposed:

Load Factor Range Incentive 50%-70% 20 paise per unit concession on energy charges for energy consumption over 50% and upto 70% load factor during the billing month Above 70% 30 paise per unit on energy charges for energy consumption over and above 70% and upto 100% load factor during billing month 9.2.8. At the same time, it may also be noted that consumers exceeding contract demand in any particular month, will not be eligible for Load Factor Incentive in that month.

9.2.9. Methodology for calculation of Load Factor:

• Load Factor = Consumption during the month, in MU (in kVAh)

Maximum Consumption possible during Month, in MU (in kVAh)

• Maximum consumption possible = Contract Demand (kVA) x Total no. of hours recorded in the meter during the month

Simplifying HT tariffs and incentivizing high-voltage power drawl

9.2.10. In order to promote electricity consumption at higher voltage levels, the Petitioner is proposing to incentivize consumers connected at higher voltage levels for HT consumers. The proposed incentive is aimed towards decreasing the line losses of the DISCOMs as well as promoting HT consumers in the state. The revised tariff structure is proposed in the table below:

Category Existing Existing Revised Revised Proposed Proposed Fixed energy Fixed energy Fixed energy Charge Tariff Charge Tariff Charge Tariff for FY (Rs./kVA) (Rs./unit) (Rs./kVA) (Rs./unit) for FY 2021-22 (without (without 2021-22 (Rs./unit) tariff hike) tariff hike) (Rs./kVA) HT-I (11 kV) 300 6.55 300 6.55 328 7.15

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Optimising time slabs for Time of Day tariff (ToD) tariff structure

9.2.11. In order to optimize the power demand curve of the state, ensuring a match between demand and supply, and thereby rationalizing the power purchase quantum as well as the cost to the Petitioner by reducing dependency on short term power purchase, a revision in ToD tariff structure is proposed by the Petitioner.

9.2.12. Under the Time of Day (ToD) Tariff, electricity consumption and maximum demand of consumers, for different periods of the day, i.e. normal period, peak load period and off-peak load period, shall be recorded by installing a ToD meter. At present, consumers under LTIS-I, LTIS-II and PWW, are covered under TOD tariffs. Going forward, it is envisaged that more and more consumer categories would be covered in the upcoming years. The TOD proposal for FY 2021-22, for billing on maximum demand and recorded consumption, is given below.

Slab Period Energy Tariff Rate Normal 23:00-11:00 Normal Tariff as per consumer category Peak 17:00-23:00 120% of Normal Tariff Off-Peak 11:00-17:00 85% of Normal Tariff

Incentivizing LTIS-II consumers for moving to HT

9.2.13. The current tariff structure allows LTIS category consumers to have a contract demand between 0 and 74 kW, and HT consumers are allowed to have a load specification which starts from 50 kVA.

9.2.14. It has been observed that due to this overlap in allowed contract demand criteria for LTIS and

HT consumers, many LTIS-II consumers have not shifted to HT category even after having

actual average usage of more than 74 kW due to comparatively higher tariff of HT category.

Further, any penalty recovered by these consumers is being booked under the non-tariff

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income, and thereby prevents the existing tariff structure from correctly reflecting costs for the

specified categories.

9.2.15. In order to ensure that there is no overlap going forward and resolve these challenges, the Petitioner is hereby proposing a revised demand specification for LTIS consumers. The Petitioner proposes that the demand criteria of LTIS consumers be limited to 0-49 kVA and any consumer with contract demand more than 49 kVA may be directed to shift to their respective HT category.

9.2.16. The Petitioner proposes that the existing LTIS-II consumers as on 31.03.2021 with contract demand over 49 kVA may be provided with a time period of 1 year i.e. till 31.03.2022 to shift to their respective HT category during which they will be charged at LTIS-II tariff only, even after shifting to HT category. Post 31.03.2022, even if the consumers have not formally shifted to their respective HT category, they will be deemed to have shifted to their respective HT category in the view of the petitioner and HT tariff will be made applicable to such consumers.

Incentivising uptake of smart metering by consumers

9.2.17. A rebate of 3% is proposed for the consumers with prepaid smart meters. This rebate will be made effective for the smart prepaid consumers from 01.04.2021 onwards in their monthly bill calculation.

9.2.18. Smart metering being an emerging technology, consumer engagement & creation of awareness about the same amongst consumers is crucial. The Hon’ble commission is therefore requested to approve the rebate of 3% for the consumers with prepaid smart meters to incentivize & promote voluntary usage of smart prepaid meters by consumers across the state.

9.2.19. Further, monthly bills will be communicated to the smart prepaid consumers through mail/sms/SUVIDHA app/ website of the petitioner. If a consumer requests for a hard copy printed bill, the same can be collected by the consumer from the nearest office of the Petitioner.

9.2.20. Based on the above, the following tariff categories and structures have been proposed for FY 2020-21.

9.2.20.1. DOMESTIC: Kutir Jyoti

 The BPL consumers in the State are served through the Kutir Jyoti tariff category.

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• At present, the consumption of Kutir Jyoti consumers is capped at 50 units per month, with the balance consumption being levied as per DS-I tariffs.

• This will be applicable to all dwelling houses of rural and urban families below the poverty line (BPL) as per the list / notification published by Rural Development Department, Govt. of Bihar from time to time.

• At present, two part tariff structure is applicable for metered Kutir Jyoti consumers, with fixed charges to be levied on a-per connection basis per month.

• The Distribution Licensees propose to retain the two-part tariff structure for metered Kutir Jyoti consumers, with fixed charges being levied on a-per KW connected load basis per month

• The tariff structure is proposed below.

Table 135: Proposed tariff structure for KJ category

S. Consumer Proposed tariff structure No. Category 1 Kutir Jyoti K.J. (Metered) Two part tariff (fixed charge per month per connection plus energy charge per unit)

9.2.20.2. DOMESTIC: Others • The Domestic category, comprising of the existing DS-I DS-II and DS-III sub- categories, had been developed for APL consumers, consuming electricity for household purposes. • On one hand wherein DS-I consumers are consumers in rural areas, DS-II fall within urban areas. DS-III is available on optional basis, • DS-II tariff is proposed to be applicable for domestic premises in urban areas notified by the Department of Urban Development, Govt. of Bihar from time to time. • Highest slab (>300 units) of DS-II tariff is proposed to be merged with the 201-300 unit slab & applicable tariff shall be that of the 201-300 unit slab. Therefore, DS-II tariff shall be confined to 3 slabs viz, 0-100 units, 101-200 units, & >200 units. • Similarly, the tariff structure for DS-I category shall also be confined to 3 slabs viz, 0-50 units, 51-100 units & >100 units. • For levying of fixed charges, tariff to be levied on the connected / sanctioned load in the absence of meters with the feature of capturing Maximum-Demand • The revised tariff structure is proposed below. Table 136: Proposed tariff structure for DS category

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S. No. Consumer Category Proposed tariff structure 1 DS – I Metered First 50 units Two part tariff (Fixed charges on maximum demand per 51-100 units month) Above 100 units 2 DS – II 1-100 units Two part tariff (Fixed charges on maximum demand per 101-200 units month) Above 200 units 3 DS-III (Optional) Two part tariff (Fixed charges on maximum demand per month)

9.2.20.3. NON-DOMESTIC • The non-domestic category is for consumers using electricity for commercial purposes in the State of Bihar. Sub-categories have been created on the basis of connected load and point of connected load. • There are currently two sub-categories within NDS; NDS-I serving rural consumers and NDS-II serving loads load up to 70 kW for urban consumers for commercial uses of electricity under LT category. • The NDS-II tariff is proposed to be applicable for Non-domestic premises in urban areas notified by the Department of Urban Development, Govt. of Bihar from time to time. NDS-I tariff will be applicable to areas where NDS IIis not applicable. • The Distribution licensee proposes to retain the two-part tariff structure for NDS Category. For levying of fixed charges, tariff to be levied on the connected / sanctioned load in the absence of meters with the feature of capturing Maximum- Demand • The revised tariff structure is proposed below.

Table 137: Proposed tariff structure for NDS category

S. Consumer Category Proposed tariff structure No. 1 NDS-I Rural Demand Based 1-100 units Two part tariff (Fixed charges on maximum demand per month) 101-200 units Above 200 units 2 NDS-II (Contract demand up Two part tariff (fixed charge per month per connection to 0.5 KW) plus energy charge per unit) 3 NDS-II (Contract demand Demand Based above 0.5 KW) Metered

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1-100 units Two part tariff (Fixed charges on maximum demand per month) 101-200 units Above 200 units

9.2.20.4. IRRIGATION AND AGRICULTURE • Under the Irrigation and Agriculture category, there are currently two separate sub- categories for private and State owned tube-wells, with differentiated tariffs for providing benefit of lower tariffs to private consumers. • Given the existing scenario, it is proposed to retain the unmetered class till the time all such connections are metered. • For levying of fixed charges, tariff to be levied on the connected / sanctioned load in the absence of meters with the feature of capturing Maximum-Demand. • For metered consumers, it is proposed to retain two-part tariff structure • The revised tariff structure is proposed below.

Table 138: Proposed tariff structure for IAS category

Consumer Category Proposed tariff structure Unmetered Supply Only fixed charge (based on per HP per month) Metered Supply Two part tariff (Fixed charges on connected load plus energy charge per unit))

9.2.20.5. LOW TENSION INDUSTRIAL • LTIS category includes consumers for small industries bifurcated into single phase and three phase connection. • LTIS-I is for consumers with contract demand up to 19 kVA and LTIS-II is for three phase connection with a contracted load above 19 kVA and up to 49 kVA. Further, demand-based tariff is mandatory for three phase connection and optional for single phase connection. • The petitioner proposes applicable load categorization of LTIS consumers to be 0-49 kVA (LTIS -I upto 19 kVA and LTIS-II for load above 19 kVA and up to 49 kVA) & LTIS consumers with connected load more than 49 kVA to be mandated to convert to HT category within the Financial year 2021-22. • Further, since all meters have the feature of recording Maximum Demand, it is proposed to retain levy of fixed charges on Maximum Demand only. Fixed charges are to be levied for all consumers in the category on per kVA basis.

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• In line with other states and the current structure, it is also proposed to retain kVAh based billing for this category. This will help introduce efficiency into the system. • The revised tariff structure is proposed below. Table 139: Proposed tariff structure for LTIS category

Consumer Proposed tariff structure Category LTIS Two part tariff (Fixed charges on maximum demand and energy charges on kVAh based billing)

9.2.20.6. PUBLIC Service Connections • PWW category which is used for public lift irrigation based connections, owned by the State Govt. under current tariff structure shall be retained as a separate sub-category under PWW category. • At present, a two part tariff is in place with fixed charges being levied on per kVA basis and all energy charges are to be charged on a kVAh basis. • A new sub-category named Har Ghar Nal was added last year for water distribution facility provided by the Public Health Engineering Department at the village panchayats and ward levels. This sub-category shall be applicable to connections released under “Har Ghar Nal” Scheme only. • The tariff for Har Ghar Nal scheme was proposed to be two part with fixed charge to be made applicable on per HP basis and the energy charge to be levied on the basis of kWh consumption. • The revised tariff structure is proposed below.

Table 140: Proposed tariff structure for PWW category

S. No. Consumer Category Tariff Structure 1 PWW Two part tariff (Fixed charges on maximum demand basis And energy charges on kVAh basis)

2 Har Ghar Nal Two part tariff (Fixed charges on sanctioned load and energy charges on kWh basis)

9.2.20.7. STREET LIGHT SERVICES • This category is for supply of electricity for street light system with separate sub- categories for metered and unmetered connections. • Ideally, there should be no provision of billing any consumer on unmetered basis; however an interim provision has been retained for billing all unmetered consumers, till the time the DISCOMs complete the metering of all street lights.

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• All energy charges are to be charged on a kWh basis and fixed charges are proposed to be levied on kW basis. • The revised tariff structure is proposed below.

Table 141: Proposed tariff structure for SS category

S. Consumer Proposed tariff structure No. Category 1 SS Metered Two part tariff (Fixed charges on kW and energy charge on kWh basis ) 2 SS Unmetered Single part tariff (Fixed charges on kW and energy charge on kWh basis )

9.2.20.8. HIGH TENSION SUPPLY • The petitioner proposes to introduce load factor incentives for the HT Category consumers (except HTSS). Table 142: Proposed tariff structure for HT category

S. Consumer Tariff Structure No. Category 1 HTS-I (11 kV) Two part tariff (Fixed charges on maximum demand and 2 HTS-II (33 kV) energy charges on kVAh billing) 3 HTS-III (132 kV) 4 HTS-IV (220 kV)

5 HTSS (11 kV/33 Two part tariff (Fixed charges on contract demand and kV) energy charges on kVAh billing)

9.2.20.9. RAILWAYS • This category is for supplying power to Railway Traction Services wherein the connection is to be provided only at 132 kV level. • There is also a provision of rebate/surcharge at 13 paise/kVAh for higher voltage/lower voltage than 132 kV shall be allowed. • No change is proposed in this category and the following existing structure would continue. Table 143: Proposed tariff structure for RTS category

S. Consumer Category Tariff Structure No. 1 RTS (132 kV) Two part tariff (Fixed charges on maximum demand and energy charges on kVAh billing)

9.2.21. The above structure has been proposed for the tariff schedule for FY 2021-22. However, it is pertinent to mention the following key points on the designing of tariff structure and rates.

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9.2.21.1. No. of energy slabs: In its quest for simplifying the tariff structure, the DISCOMs have already removed several sub-categories. However for energy slabs, given the current standard practice followed across states, the DISCOMs would want to retain the current no. of energy slabs within each category / sub-category. Going forward, it is their endeavor to reduce the number of energy slabs within each sub-category as well. For this, they also plan to carry out a scientific study to substantiate the rationale behind setting various slab limits. 9.2.21.2. Existence of special categories: In Bihar, a separate category exists as HTSS for specifically supplying power to arc furnaces, and in line with their consumption, their tariff structure provides for a high fixed charge with a low per unit energy charge. The DISCOM is planning to undertake a study for assessing the demand and consumption patterns of the consumers on a sample basis, based on which it will develop a roadmap for merging this category with relevant HTS category. For the ensuing year however, no revision is proposed in the structure of this category. Similarly, another special category namely Har Ghar Nal (HGN) also exists in the state of Bihar. For the ensuing year however, no revision is proposed in the said category structure as well. 9.2.21.3. Levying of fixed charges: The endeavor of the DISCOMs is to levy the fixed tariff on consumers based on their maximum demand in the long term, and on their contracted demand in the short term. However for some specific unmetered consumer categories and sub-categories, the fixed charge is proposed to be levied on each connection. The DISCOMs are taking steps to reconcile the connected load of such consumers, so as to avoid any excessive burden due to inaccurate load records or limited energy usage. 9.2.21.4. Demand Based tariffs: The DISCOMs are planning to gradually move to demand based tariffs for all consumers, and most meters being currently installed, have the feature of recording the maximum demand. 9.2.21.5. Implementation of flat tariff: In order to simplify the tariff structure further, and also encourage energy efficiency for consumers especially with higher specific consumption, the DISCOMs have been exploring the concept of implementing a flat tariff for each energy slab. However for the ensuing year, the existing structure has been considered wherein the benefit of lower tariffs would continue for consumption at lower energy slabs. 9.2.21.6. Classification of consumers under urban and rural sub-category for DS-I/DS-II and NDS-I/NDS-II: The extension of the electrical network of the DISCOMs has been done for many areas, and in several cases, electrical feeders initially emerging from urban areas, have now been extended to rural areas as well, based on financial viability. Therefore in order to avoid any ambiguity pertaining to a classification of a consumer as Urban / Rural, the categorization in the applicable sub-category within Domestic and Non-Domestic categories, would be done only based on the latest / prevalent notification issued by the

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relevant authority, denoting an area to be falling under Urban / Rural areas. No other methodology would be followed. 9.2.21.7. Recovery of fixed charges: The fixed costs include the establishment and network costs, as well as the fixed costs payable to the Generators, irrespective whether power is drawn from them. The variable costs is the energy cost paid to Generators for supply of energy. On one hand wherein the cost structure of the two DISCOMs is heavily tilted towards fixed charges, the recovery of revenue through the existing tariff approved by the Hon’ble Commission is tilted more towards energy tariffs. Due to this skewed nature of tariff recovery, the DISCOMs have limited revenue assurance and therefore face uncertainty. In the tariff order dated 20th March 2020, the Hon’ble Commission linked the recovery of fixed charges in full only if the supply of power duly recorded by a consumer meter (except street lights, Agriculture and all unmetered categories of consumers) is maintained for atleast 21 hours / day during the billing month. In any month if the supply of power is less than 21 hours / day, then the demand charge for that month shall be levied on pro-rata basis. In view of the above, the Petitioner hereby requests the Hon’ble Commission to link the recovery of fixed charges with supply hours with the proposed roadmap of smart meter installation in the state. The same may also be made applicable in current scenario as well wherein the linking of fixed charges with hours of supply should be applicable to those consumers who have smart meters installed in their premises. 9.2.21.8. General and miscellaneous charges: The DISCOMs have also proposed a meter testing fees for bidirectional meters along with open access charges such as Additional Surcharge, Parallel Operating charges, Congestion charges etc.

9.2.21.9. In order to meet the gap for FY 2021-22, the Petitioner requests to additional costs to be allowed in electricity tariff. The DISCOMs propose the following tariff schedule to be adopted for the FY 2021-22, w.e.f. 01.04.2022, without taking the impact of any subsidy to be provided by the Government of Bihar for tariff relief.

Table 144: Tariff schedule considering ‘Zero’ GoB Subsidy

Category Proposed Tariff- FY 2021-22 Fixed charge Units Energy Units Charge Low Tension Supply Domestic Kutir Jyoti Metered 0-50 units 11 Connection/Month 6.61 kWh >50 units DS-I tariff applicable DS I Rural (Demand Based)

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Category Proposed Tariff- FY 2021-22 Fixed charge Units Energy Units Charge Metered First 50 Units 22 kW/Month 6.61 kWh 51-100 Units 22 kW/Month 6.88 kWh Above 100 units 22 kW/Month 7.21 kWh DS II Demand Based First 100 Units 44 kW/Month 6.61 kWh 101-200 Units 44 kW/Month 7.48 kWh Above 200 Units 44 kW/Month 8.41 kWh DS III 44 kW/Month 8.08 kWh Non-Domestic Service NDS I - Metered (Demand based) First 100 Units 33 kW/Month 6.88 kWh 101-200 Units 33 kW/Month 7.48 kWh Above 200 Units 33 kW/Month 8.08 kWh NDS II - Demand Based Contract Demand <0.5 kW 109 Connection/Month 6.88 kWh Contract Demand >0.5 kW First 100 Units 197 kW/Month 6.88 kWh 101-200 Units 197 kW/Month 7.48 kWh Above 200 Units 197 kW/Month 8.08 kWh

Street Light Services SS Metered 55 kW/Month 8.08 kWh SS Unmetered 4,096 kW/Month - kWh

Irrigation & Allied Services IAS I Unmetered 874 HP/Month - kWh Metered 33 HP/Month 6.01 kWh IAS II Metered 262 kVA/Month 6.44 kVAh

Public Service Connections Public Water Works (Demand based) 344 kVA/Month 8.68 kVAh Har Ghar Nal (Connected load Based) 44 HP/Month 7.26 kWh

Low Tension Industrial Services LTIS I (0-19 kVA) 157 kVA/Month 6.99 kVAh

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Category Proposed Tariff- FY 2021-22 Fixed charge Units Energy Units Charge LTIS II (>19 kVA – 49 kVA) 197 kVA/Month 6.99 kVAh

High Tension HTS I - 11 kV 328 kVA/Month 7.15 kVAh HTS II - 33 kV 328 kVA/Month 6.99 kVAh HTS III -132 kV 328 kVA/Month 6.83 kVAh HTS IV - 220 kV 328 kVA/Month 6.66 kVAh HTSS 765 kVA/Month 4.42 kVAh

Railway Traction Services RTS 306 kVA/Month 7.32 kVAh

9.3. Terms and Conditions of Low Tension Tariff

The foregoing tariffs are subject to the following conditions: 9.3.1. Demand Based Tariff The billing demand shall be the maximum demand recorded during the month or 75% of the contract demand whichever is higher (minimum demand shall be taken as 1kW except for NDS- II where separate 0.5kW cap is there and SS-unmetered). If in any month the recorded maximum demand exceeds 105% of contract demand, the enhanced demand in excess of the contract demand and the incremental energy corresponding to such enhanced demand measured in kWH or kVAh, as the case may be, shall be billed at twice the normal charges. The Petitioner further proposes that the provision of penalty on incremental energy usage and subsequent energy charges should not be applicable to Domestic category consumers. Example: If an HT consumer having contract demand 100 kVA draws 125 kVA and 10000 kVAh in any month then his enhanced demand 25 kVA shall be charged at twice the normal rate of demand charge and the incremental energy (10000/125)*25=2000 kVAh shall also be charged at twice the normal rate of energy charge. 9.3.2. Recovery of full Fixed / Demand Charge The demand charges would be recovered in full only if supply of power duly recorded by the consumer meter is maintained for at least 21 hours/day during the billing month. In any month if the supply of power is less than 21 hours/day, then the demand charge for that month shall be levied on pro-rata basis. It is further proposed by the Petitioner to make this mandatory for such consumers who have smart meters installed in their premises. Since, all the meters

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currently installed in the state don’t have the capability to record the number of hours of supply, the linking of fixed cost recovery with hours of supply may please be be aligned with the roadmap of installation of smart meters in the state. This shall not be applicable to Street light, Agriculture as well as un-metered tariff categories of consumers. 9.3.3. Fuel and Power Purchase Cost Adjustment (FPPCA) In addition to the above tariff Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra.

9.3.4. Rebate for prompt payment

The due date for making payment of energy bills or other charges shall be 15 days from the date of issue of the bill. To motivate consumers to make timely payment of their bills it is proposed to provide a rebate of 1.5% on the billed amount for timely payment of the bills for all the consumers served in LT category.

In case a consumer makes full payment after due date but within 10 days after the due date, no DPS shall be levied for this period but rebate for prompt payment will not be admissible.

9.3.5. Rebate for online payment

To motivate the consumers to make online payment of the bills through online web portal of the Petitioner it is proposed to provide a rebate of 1% of the billed amount in addition to rebate @ 1.5% on the billed amount for timely payment of the bills for all the consumers served in LT category. Payment made through all electronic modes of payment made directly in the DISCOM account will be considered as online payment. However, online payment rebate shall be applicable if the consumer makes the payment within due date in full.

In case a consumer makes full payment after due date but within 10 days after the due date, no DPS shall be levied for this period but rebate for prompt payment will not be admissible.

9.3.6. Accounting of Partial Payment

All payment made by consumers in full or part shall be adjusted in the following order of priority:

a. Statutory taxes and duties on current consumption b. Arrear of Statutory taxes and duties c. Delayed payment surcharge d. Balance of arrears e. Balance of current bill

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9.3.7. Delayed Payment Surcharge (DPS)

In case a consumer does not pay energy bills in full within 10 days grace period after due date specified in the bill, a delayed payment surcharge of one and half (1.5) percent per month or part thereof on the outstanding principal amount of bill will be levied from the due date for payment until the payment is made in full without prejudice to right of the licensee to disconnect the supply in accordance with Section 56 of the Electricity Act, 2003. The licensee shall clearly indicate in the bill itself the total amount, including DPS, payable for different dates after the due date after allowing for the grace period of 10 days. No DPS shall be charged on DPS arrear. The bill shall indicate the energy charges for the month, arrears of energy charges and DPS separately.

9.3.8. Advance Payment: If a consumer makes advance payment against his future bills he shall be allowed for interest @ 4% (or bank rate, whichever is minimum) per annum. Such amount of interest shall be adjusted in subsequent monthly regular electricity bills on reducing balance, provided that the minimum amount of advance payment shall not be less than Rs.2000 (Rupees Two thousand).

9.3.9. Duties and Taxes

Other statutory levies like electricity duty or any other taxes, duties etc., imposed by the State Government / Central Government or any other competent authority, shall be extra and shall not be part of the tariff as determined under this order.

9.3.10. Shunt Capacitor Installation and Rebate/surcharge for deviating from norm of Power Factor  Any LT consumer except Domestic category and categories having kVAh based billing in whose case, the meter installed has power factor recording feature and who fails to maintain monthly average power factor of 90% shall pay/avail a surcharge/rebate in addition to his normal tariff at the following rates

Power factor surcharge (i) For each fall of 0.01 in power factor One percent on demand and energy charge (Actual up to 0.80 Recorded)

(ii) For each fall of 0.01 in power factor 1.5 (one and half) percent on demand and energy charge below 0.80 (Actual Recorded)

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Power factor rebate (i) For each increase of 0.01 in power 0.5 (half) percent on demand and energy charge (Actual factor above 0.90 up to 0.95 Recorded)

(ii) For each increase of 0.01 in power 1.0 (one) percent on demand and energy charges. (Actual factor above 0.95 Recorded)

9.3.11. Revision in Time of Day tariff (ToD) structure To revise the ToD tariff structure in a way to regulate the demand curve and rationalize power purchase cost of the DISCOMs & To plan and reduce dependency on short term power purchase, a revision in ToD tariff structure is proposed. Consumers under LTIS-I, LTIS-II and PWW shall have the option to take TOD tariff instead of the normal tariff given in the Schedule. Under the Time of Day (ToD) Tariff, electricity consumption and maximum demand in respect of LTIS-I and PWW consumers for different periods of the day, i.e. normal period, peak load period and off-peak load period, shall be recorded by installing a ToD meter. The maximum demand and consumption recorded in different periods shall be billed at the following rates on the tariff applicable to the consumer.

Slab Period Energy Tariff Rate Normal 23:00-11:00 Normal Tariff as per consumer category Peak 17:00-23:00 120% of Normal Tariff Off-Peak 11:00-17:00 85% of Normal Tariff

9.3.12. Proposed changes in reference to smart prepaid metering: 9.3.12.1. Smart pre-paid meter disconnection process 9.3.12.1.1. The smart energy meters are being installed in prepaid mode and electricity charge calculation of consumers take place on a daily basis. 9.3.12.1.2. Daily charge calculation/deduction shall be done in MDMS system or billing system based on the data collected from Head End System (HES) (daily profile, load profile and billing profile). The balance and consumption data shall be updated against each consumer, which can be readily viewed by the consumer via dedicated mobile app and web portal 9.3.12.1.3. The moment, consumers balance falls below the 7-day average amount (i.e. seven times the last month’s daily average), a recharge notification/alert (Notification 1) is sent to the consumer to avoid disconnection and same is also reflected in the consumer mobile app. 9.3.12.1.4. Once the consumer’s balance goes below zero amount, disconnection alert message (Notification 2) is sent to the consumer asking them to recharge and same is also reflected in the consumer mobile app.

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9.3.12.1.5. Within 24 hours of the disconnection alert message, consumers receive an imminent

disconnection message (Notification 3) and failure to recharge within 24 hours of the

imminent disconnection message leads to disconnection of the consumer connection and

same may also be reflected in the consumer mobile app.

9.3.12.1.6. Disconnection are scheduled only between 10 AM - 1 PM of any particular day, provided

it is not a Govt. of Bihar notified holiday or a Sunday.

9.3.12.1.7. Post disconnection, consumers are notified once in every 4 days about the same along

with details of the negative balance amount till the consumer recharges their account to

show a positive balance amount.

9.3.12.1.8. The Hon’ble commission is hereby requested to consider the above-mentioned

process/timelines formulated by the Bihar DISCOMs for the temporary disconnection of

consumers with smart prepaid energy meters & grant approval for the same. Also, the

petitioner prays to the Hon’ble commission that notifications as highlighted above may be

considered as formal intimation to the consumers for DISCOM to carry out temporary

disconnection.

9.3.12.2. Smart pre-paid meter reconnection process

9.3.12.2.1. Consumers can recharge online through Mobile app, web application and digital payment

system such as E-wallet, V-wallet, or collection counter and web portal

9.3.12.2.2. Post Disconnection, consumers must recharge their account to a positive balance

amount for the reconnection process to be initiated.

9.3.12.2.3. Once account shows positive balance, the automatic reconnection command is triggered

from MDMS to HES (Head End System) and HES to meter.

9.3.12.2.4. The consumer can get auto reconnected within few minutes of recharge of the meter.

9.3.12.2.5. However, in case of any delay in reconnection, DISCOMs shall ensure that the following

threshold for timelines is adhered to, at any cost:

Type of consumers Recharge Time slot Reconnection Time slot Rural Consumers Before 1 PM (Day 0) Before end of Day 1 After 1 PM (Day 0) Before end of Day 2

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Urban Consumers Before 1 PM (Day 0) 8 hours from recharge time After 1 PM (Day 0) Before 1 PM (Day 1)

9.3.12.2.6. In case, consumers are temporarily disconnected on account of breach of conditions of supply or of his/ her agreement with the Licensee or of such provisions of the Act other than the reason of low or negative balance, a nominal charge as approved by the Hon’ble Commission may be recovered from the consumer as reconnection charges to ensure that the cause of disconnection has been removed & any associated compliance for ensuring safety is maintained at the consumer premise, before restoring supply of electricity. Such amount shall be deducted from the consumer’s account & payment of any existing dues along with the reconnection charge is necessary for ensuring electricity supply restoration at such consumer premises.

9.3.12.2.7. The Hon’ble commission is therefore requested to consider the above-mentioned process & timelines formulated by the Bihar DISCOMs for reconnection of temporary disconnection consumers with smart prepaid energy meters & grant approval for the same. Also, the petitioner prays to the Hon’ble commission to approve the threshold timelines for reconnecting consumers, taking into consideration the topological challenges prevailing across the state. Additionally, Petitioner requests the Hon’ble commission to approve the recovery of reconnection charges from consumers when reason for disconnection is anything other than low or negative account balance.

9.3.12.3. Rebate for prepaid smart meter consumers

9.3.12.3.1. A rebate of 3% is proposed for the consumers with prepaid smart meters. This rebate will be made effective for the smart prepaid consumer from 01.04.2021 in their monthly bill calculation.

9.3.12.3.2. Smart metering being an emerging technology, consumer engagement & creation of awareness about the same amongst consumers is crucial. The Hon’ble commission is therefore requested to approve the rebate of 3% for the consumers with prepaid smart meters to incentivize & promote voluntary usage of smart prepaid meters by consumers across the state.

9.3.12.4. The Hon’ble Commission is further requested to draft and publish the Smart Metering Regulations for the state of Bihar and establish provisions and regulations related to smart metering in the state including but not limited to the above-mentioned provisions.

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9.3.13. Defective / Damaged / Burnt Meters Supply

In case of meter being defective / damaged / burnt the licensee or the consumer as the case may be, shall replace it within the specified period prescribed in “Standards of Performance for Distribution Licensee”, Regulations issued by the Commission.

• Till defective / damaged / burnt meter is replaced, the consumption will be assessed and billed on an average consumption of last 12 months from the date of meter being out of order. Such consumption shall be treated as actual consumption for all practical purposes including calculation of electricity duty until the meter is replaced/ rectified. • In cases of newly installed meter of a consumer becoming defective/ damaged/ burnt after installation of the meter prior to completion of 12 months since its installation, the billing for the period for such defective/ damaged/ burnt meter, till it is not replaced, shall be done on the basis of average monthly consumption of the consumer or the MMC whichever is higher. • In case of the meter of a consumer becoming defective in the first month of installation itself, without taking any reading the consumer shall be provisionally billed on the basis of amount of security collected for one month. However, the provisional bill will be done for one month only and that will be finalized and adjusted on the basis of consumption of the second month.

9.3.14. Electric Vehicles (EVs) : Consumers may also charge Electric Vehicles (EVs) from their existing electric connection and the respective category tariff would be applicable for the electricity consumed for charging of the EVs. Existing provision of demand-based tariff being optional for three phase LT consumer should be made compulsory. Tri-vector meters are installed in all the three phase consumers, Petitioner proposes to cover all three phase consumers under demand based tariff.

9.3.15. Charges to Tatkal Connections (Optional)

If any consumer (other than High Tension and Railway) opts for availing connection under Tatkal scheme, the licensee shall release the Tatkal connection to such consumer with the following conditions:

• The Tatkal connections shall be released by licensee in half the time limit prescribed in the Supply code for that consumer category. • Two (2) times of the following charges approved under head miscellaneous and general charges will be taken from the consumers willing to avail Tatkal connection.

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• Application fees for new connection, and; • Supervision, labor and establishment charge for service connection • In case licensee fails to release connection within this time limit, licensee will refund the additional amount claimed to the consumer in the first energy bill. 9.3.16. Contract Demand for billing under Domestic Tariff • For computation of the connected load of a domestic consumer either load of coolers/ fans or room heaters whichever is higher shall be considered. For the premises having Air conditioner (without heater) and that of geysers, the computation of connected load shall be as per the provision of Bihar Electricity Supply Code, 2007. • The contract demand of those consumers for the monthly billing purpose in the premises who have opted for demand-based tariff, the recorded demand or the contract demand, whichever is higher, shall be considered. • Subject to the minimum load of 1 kW, the fraction of the load below 500 W shall be rounded to its nearest lower level of whole number and 500 W and above shall be rounded to its nearest higher level of whole number, as specified in the Bihar Electricity Supply Code, 2007. • In case of demand-based tariff, verification of connected load is not required.

9.3.17. Existing provision of demand-based tariff being optional for three phase LT consumer should be made compulsory.

Tri-vector meters are installed in all the three phase consumers, Petitioner proposes to cover all three phase consumers under demand-based tariff.

All the other terms and conditions for the LT supply as has been decided by the Hon’ble Commission in its tariff order dated 21.03.2019 shall remain applicable for the FY 2021-22 also.

9.4. Terms and Conditions of High Tension Tariff The foregoing tariffs are subject to the following conditions: 9.4.1. Demand Based Tariff The billing demand shall be the maximum demand recorded during the month or 75% of the contract demand whichever is higher. If in any month the recorded maximum demand exceeds 105% of contract demand, the enhanced demand in excess of the contract demand and the incremental energy corresponding to such enhanced demand measured in kWH or kVAh, as the case may be, shall be billed at twice the normal charges.

Example: If a consumer having contract demand 100 kVA draws 125 kVA and 10000 kVAh in any month then his enhanced demand 25 kVA shall be charged at twice the normal rate of

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demand charge and the incremental energy (10000/125)*25=2000 kVAh shall also be charged at twice the normal rate of energy charge.

9.4.2. Recovery of full Fixed/Demand Charge

The demand charges shall be recovered in full only if supply of power duly recorded by the consumer meter is maintained for at least 21 hours/day during the billing month. In any month if the supply of power is less than 21 hours/day, then the demand charge for that month shall be levied on pro-rata basis. 9.4.3. Fuel and Power Purchase Cost Adjustment (FPPCA) In addition to the above tariff Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. 9.4.4. Rebate for prompt payment The due date for making payment of energy bills or other charges shall be 15 days from the date of issue of the bill. To motivate the consumers to make timely payment of the bills it is proposed to provide a rebate of 1.5% on the billed amount for timely payment of the bills for all the consumers served in HT category.

In case a consumer makes full payment after due date but within 10 days after the due date, no DPS shall be levied for this period but rebate for prompt payment will not be admissible.

9.4.5. Rebate for online payment To motivate the consumers to make online payment of the bills through online web portal of the Petitioner it is proposed to provide a rebate of 1% of the billed amount in addition to rebate @ 1.5%. Payment made through all electronic modes of payment made directly in the DISCOM account will be considered as online payment. However, online payment rebate shall be applicable if the consumer makes the payment within due date in full.

9.4.6. Accounting of Partial Payment All payment made by consumers in full or part shall be adjusted in the following order of priority:

a. Statutory taxes and duties on current consumption

b. Arrear of Statutory taxes and duties

c. Delayed payment surcharge

d. Balance of arrears

e. Balance of current bill

9.4.7. Delayed Payment Surcharge (DPS)

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In case of consumer does not pay energy bills in full within 10 days grace period after due date specified in the bill, a delayed payment surcharge of one and half (1.5) % per month or part thereof on the outstanding principal amount of bill will be levied form the original due date for payment until the payment is made in full without prejudice to right of the licensee to disconnect the supply in accordance with Section 56 of the Electricity Act, 2003. The licensee shall clearly indicate in the bill itself the total amount, including DPS, payable for different dates after the due date after allowing for the grace period of 10 days. No DPS shall be charged on DPS arrear.

9.4.8. Revision in Time of Day tariff (ToD) structure ToD tariff shall be mandatory for all HT consumers. Under the Time of Day (ToD) Tariff, electricity consumption and maximum demand in respect of HT consumers for different periods of the day, i.e. normal period, peak load period and off-peak load period, shall be recorded by installing a ToD meter. To revise the ToD tariff structure in a way to regulate the demand curve and rationalize power purchase cost of the DISCOMs & To plan and reduce dependency on short term power purchase, a revision in ToD tariff structure is proposed. The petitioner proposes a revision in the ToD tariff structure - The maximum demand and consumption recorded in different periods shall be billed at the following rates on the tariff applicable to the consumer. Slab Period Energy Tariff Rate Normal 23:00-11:00 Normal Tariff as per consumer category Peak 17:00-23:00 120% of Normal Tariff Off-Peak 11:00-17:00 85% of Normal Tariff

9.4.9. Duties and Taxes Other statutory levies like electricity duty or any other taxes, duties etc., imposed by the State Government / Central Government or any other competent authority, shall be extra and shall not be part of the tariff as determined under this order.

9.4.10. Contract Demand for Induction Furnaces The prevailing practice will continue for determining the contract demand of induction furnaces in the existing services connections. However, for new connections and where the furnaces are replaced in existing connections, contract demand shall be based on the total capacity of the furnace and equipment as per manufacturer technical specifications and in case of difference of opinion, the provisions of clause No.6.39 and 6.40 of Bihar Electricity Supply Code shall apply.

9.4.11. Advance Payment:

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If a consumer makes advance payment against his future bills he shall be allowed for interest @ 4% (or bank rate whichever is minimum) per annum. Such amount of interest shall be adjusted in subsequent monthly regular electricity bills on reducing balance, provided that the minimum amount of advance payment shall not be less than Rs.2000 (Rupees Two thousand). Notwithstanding anything contained above, pre-paid metered consumers shall also be allowed for interest @ 4% per annum. 9.4.12. Incentivizing increased consumption through improving of load factor To promote load factor utilization in the state, the Petitioner hereby proposes to introduce Load factor incentives in the state for HT category consumers (except for HTSS consumers) in the Tariff of FY 2021-22. In the proposed incentive, the HT Consumers in FY 2021-22 would be incentivized on better load factor utilization on monthly basis through a rebate on their energy charge. The following slabs of Load factor range are proposed to be incentivized: Load Factor Range Incentive 50%-70% 20 paise per unit concession on energy charges for energy consumption over 50% and upto 70% load factor during billing month Above 70% 30 paise per unit on energy charges for energy consumption over and above 70% and upto 100% load factor during billing month

It may further be note that consumer exceeding contract demand in any month will not eligible for Load Factor Incentive in that month.

Methodology for calculation of Load Factor:

• Load Factor = Consumption during the month, in MU (in kVAh)

Maximum Consumption possible during Month, in MU (in kVAh)

• Maximum consumption possible = Contract Demand (kVA) x Total no. of hours of supply recorded in the meter during the month

9.4.13. Defective / Damaged / Burnt Meters Supply In case of meter being defective / damaged / burnt the licensee or the consumer as the case may be, shall replace it within the specified period prescribed in “Standards of Performance for Distribution Licensee”, Regulations issued by the Commission.

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• In cases of newly installed meter of a consumer becoming defective/ damaged/ burnt after installation of the meter prior to completion of 12 months since its installation, the billing for the period for such defective/ damaged/ burnt meter, till it is not replaced, shall be done on the basis of average monthly consumption of the consumer or the MMC whichever is higher. • In case of the meter of a consumer becoming defective in the first month of installation itself, without taking any reading the consumer shall be provisionally billed on the basis of amount of security collected for one month. However, the provisional bill will be done for one month only and that will be finalized and adjusted on the basis of consumption of the second month.

9.4.14. Exceeding Contract Demand If the actual recorded demand of a consumer exceeds 105% consecutively for three months Licensee may issue a notice and inform the consumer to get additional contract demand sanctioned or to limit their drawal as per their contract. Otherwise Licensee will take action as per provisions of the Act/Rules/Regulations.

9.4.15. Contract Demand for Induction Furnaces The prevailing practice will continue for determining the contract demand of induction furnaces in the existing services connections. However, for new connections and where the furnaces are replaced in existing connections, contract demand shall be based on the total capacity of the furnace and equipment as per manufacturer technical specifications and in case of difference of opinion, the provisions of clause No.6.39 and 6.40 of Bihar Electricity Supply Code shall apply.

9.4.16. Shift to kVAH based Tariff Understanding that the kVAH based tariff has an inbuilt mechanism for incentivizing the consumers who maintain better power factor, the Petitioner proposes the Commission to retain kVAH based tariff in the state for HT consumers. This is bound to encourage HT consumers to save on their electricity bills.

All the other terms and conditions for the HT supply as has been decided by the Hon’ble Commission in its tariff order dated 21.03.2018 shall remain applicable for the FY 2019-20 also.

9.4.17. Temporary Supply (LT and HT)

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• Applicability: This tariff is for connection of temporary in nature for period of less than one year. The applicability shall be as given in the respective category tariff rate schedule. Temporary supply cannot be claimed by a prospective consumer as a matter of right but will normally be arranged by the Licensee when a requisition is made giving due notice subject to technical feasibility and in accordance with electricity supply code issued by the Commission. • Tariff: Fixed charge and energy charge shall be chargeable at one and one-fourth (1/4) times the normal tariff as applicable to the corresponding appropriate tariff category. • Terms of Supply: a) Temporary supply under any category of service may be given for a period not exceeding 30 days in the first instance, the duration of which, however may be extended on month-to- month basis subject to maximum of one year. b) In addition to the charges mentioned above, the consumer shall have to deposit the following charges before commencement of the temporary supply: ▪ Estimated cost of erection of temporary service line and dismantling. ▪ Cost of irretrievable materials which cannot be taken back to service. ▪ Meter rent for the full period of temporary connection as per appropriate Tariff Schedule and miscellaneous charges. ▪ Rental on the cost of materials as per estimate framed but not payable by the consumer shall be payable at the rate of Rs. 15/- per month on every Rs. 100/- or part thereof. ▪ Ten per cent on the total cost of the estimate for the temporary service connection to cover as security for loss of materials and contingencies. In case such loss is not noticed, the amount will be refunded. c) The applicants for temporary supply shall be required to make a deposit in advance of the cost as detailed above including the energy consumption charges estimated for full period on the basis of connected load. This will, however, be adjusted against the final bill that will be rendered on disconnection of supply month to month basis. d) If the consumer intends to extend the temporary supply beyond the period originally applied for, he will have to deposit in advance all charges as detailed above including the estimated electricity consumption charges, for the period to be extended and final bill for the previous period, as well. • The temporary supply shall continue as such and be governed by the terms and conditions specified above until the supply is terminated or converted into permanent supply at the written request of the consumer. The supply will be governed by the terms and conditions of permanent supply only after the consumer has duly completed all the formalities like execution of agreement, deposit of security money, cost of service connection and full settlement of the account in respect of the temporary supply etc.

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9.4.18. Security deposit

• The initial security deposit shall be calculated on the basis at a load factor of 50% on contract demand payable at prevailing unit rate for HTS-I category. • For HTS-II category it shall be calculated on the basis at a load factor of 55% on contract demand payable at prevailing unit rate. • For HTS-III and HTS-IV category it shall be calculated on the basis at a load factor of 60% on contract demand payable at prevailing unit rate. • For HTSS consumer the formula for calculation of initial security deposit as below: (Contract demand * 289 * energy charge per unit)*2 + (Contract demand * Demand Charge per kVA)*2

9.4.19. Seasonal Supply (LT and HT) • The Petitioner proposes to provide seasonal supply to any consumer on written request to the Licensee subject to the following conditions.

Table 147: Proposed tariff rate for seasonal supply

Period of Supply Tariff Rate

Upto 3 consecutive months in a year Appropriate tariff plus 30 percent

More than 3 consecutive months and upto 6 consecutive Appropriate tariff plus 20 percent months in a year

More than 6 consecutive months and upto 9 consecutive Appropriate tariff plus 15 percent months in a year

More than 9 consecutive months but less than one year Appropriate tariff plus 5 percent.

• The meter rent and other charges as provided in the appropriate tariff are applicable to seasonal loads and would be charged extra for the entire period of supply. • The supply would be disconnected after the end of the period unless the consumer wants the supply to be continued. Any reconnection charges have to be borne by the consumer. • Consumer proposing to avail seasonal supply shall sign an agreement with the Licensee to avail power supply for a minimum period of 3 years in the case of HT, and 2 years in the case of LT category of supply. • The consumers must avail supply in terms of whole calendar month continuously. • The consumer is required to apply for seasonal supply and pay initial cost and security deposit as an applicant for normal electricity supply.

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• The consumer shall ensure payment of monthly energy bills within 7 days of its receipt. The supply will be disconnected if payment is not made on due date. • Incremental charges will not be applicable for fixed charge component of the electricity bill in case of seasonal supply.

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10. Directives – FY 2020-21 (Q1 and Q2)

SN Directives 1 Performance of DISCOMs The Commission has observed that both the billing efficiency and collection efficiency in both the DISCOMs is not as per requirement and directs the DISCOMs to; 1) Pay attention and see that both the Billing efficiency and Collection efficiency are improved such that the targeted percentage distribution loss and A&TC loss target for FY 2019-20 are achieved. 2) The progress of releasing of new connections shall be improved such that the tendency of application is

reduced to minimum if not to nil. 3) More attention to be given to resolve the consumer grievance by CGRF to reduce the tendency of complaints to be resolved. The Commission, therefore, reiterates the above directive and directs the DISCOMs to submit the quarterly reports promptly duly furnishing the information/data in the formats given in the tariff order dated 21.03.2018. Response of DISCOM

The petitioner has submitted required format provided by Hon’ble commission attached herewith in the following Annexures;

Directive 1 Format 3 A Annexure 1 Directive 1 Format 3 B Annexure 2 Directive 1 Format 5 Annexure 3 Directive 1 Format 6 Annexure 4

Directive 1 Format 8 Annexure 5 Directive 1 Format 9 Annexure 6 Directive 1 Format 10 Annexure 7 Directive 2 Format 1A Annexure 8 Directive 2 Format 1B Annexure 9 Directive 4 Format 4 Annexure 10 Directive 5 Format 7 Annexure 11

2 Cent Percent Consumer Metering The Commission has noted the compliance submitted by the DISCOMs on providing of meters and directs to expedite providing meters to the remaining consumers at the earliest. The Commission has also noted that the percentage of taking meter readings of the metered consumers is only about 53% in SBPDCL and 40% in

NBPDCL. Meter readings for all the metered consumers shall be taken without fail and on the due date. It is to be noted here that the Commission is monitoring the progress via BERC Case No. SMP-22/2017. The DISCOMs are therefore, directed to report the progress regularly to the Commission. Response of DISCOM a. To accelerate the metering TKCs of Saubhagya Scheme has been given work for execution of meter installation in unmeterd consumer premises and shifting of meter at doorbell locations. Standard to be taken under ongoing scheme of Mukhyamantri Vidyut Saubhagya Yojna in mission mode, Details of metering progress as per format 1(a) is attached in annexure 8. b. The petitioner has shared details of billing as per format 1B in annexure 9. 3 Energy Accounting/Audit The Commission has directed the DISCOMs to install 100% system metering up to 11kV level and conduct energy accounting/audit at the end of every month, both for 33/11 KV substation-wise and Division-wise and consolidated circle-wise. The Commission has noted that compliance reported and directs the DISCOMs to provided/replace defective meters for the balance feeders so that the energy accounting/audit can be done fairly accurately. Commission is separately monitoring the progress of this directive through its BERC Case No. SMP 25/2017. The monitoring of the directives will continue and the DISCOMs are directed to send compliance reports regularly. In view of the partial implementation, the directive is reiterated. Response of DISCOM Methodology: regularly checking the feeder energy metering system and evaluate the state. Preventive and corrective maintenance of feeder metering system for identification of defects leading to performance issues:

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SN Directives

(a) Preventive maintenance; Random checks of the energy meters for the predefined sample size across the DISCOM by MRT. (b) Corrective maintenance; based on meter data of energy meter issues impacting its performance along with identification of abnormal energy accounting parameters. (c) Module for healthy upkeep of system metering: • Agency appointed for metering of unmetered , defective feeder metering points • Replacement of non-RMR compatible meters • Installation of modems for AMR • All system meters (Existing + New) are to be maintained under Annual Maintenance Contract (AMC) • Buffers stock of meters and metering units are maintained • Engineer In-charge re-inspects the works performed by the agency, as & when required • Agency does GPS based survey of metering points & the same is shared with the DISCOM • Timelines for defective meter replacement are within 5 working days from the date of reporting • The meters are procured with 5 years of warranty period, with an intent of longer meter lifecycle • Enhanced system reliability by tie up with service providers • Provision for system meter reading via Meter Reading Instrument (MRI) in case of communication failure • Checking/rectification of connection of existing system meters (example laying of control cables from VCB panel to tri-vector meter installed in metering panel, laying of communication cables between existing meter to DCU/modem, etc.) • Proper earthing while installation of metering system for feeder & DT • Software Development for automatic reporting:- • Both the agencies have deployed MDAS system for automatic reading & onward reporting of feeder & DT(town) as per prescribed format by Hon’ble BERC • Data validation under progress, all systems to be in place by Nov’19 • App based monitoring of feeder & DT to be in place by Nov’19 Presently all the report the prescribed format have been submitted by the DISCOM as per scheduled date. Further we are going to check all the data at field level to get the pin pointed fault location. 4 Consumer Database The Commission has been observing that despite development of Management Information System (MIS), the DISCOMs have not been able to submit the desired data in its tariff petition and/or in other petitions. The Commission notes with displeasure that SBPDCL has not provided the detail consumer database for both

quarters ending June 2018 and September 2018. In view of the same both DISCOMs are again directed to submit the month-wise consumer database, month wise showing the slab wise consumption for the consumer categories where consumption slabs are provided in the tariff schedule. Response of DISCOM Only partial data was downloaded from MIS while slab wise units and amount billed detailed were not

available, hence, the petitioner has estimated these details based on calculations done in tariff order. 5 Reduction of AT&C Losses The Commission observes that SBPDCL has not provided the figures division wise and only circle-wise percentage of distribution losses, have been provided. Report on AT&C losses have not been provided. Therefore, the SBPDCL is again directed to furnish division-wise and circle-wise quarterly reports on Billing efficiency, collection efficiency and AT&C loss. The Compliance on the directive submitted by NBPDCL is noted and directs to improve the billing efficiency and AT&C loss to the level of stipulated target in UDAY by end of March 2019. In view of the partial implementation, the Commission reiterates the directive. Response of DISCOM As per UDAY MoU, SBPDCL’s target for AT&C loss reduction is 15% by March 2020. Despite rigorous efforts across meter reading billing and collection a major chunk of units are lost due to high technical losses in LT consumers. Most of the consumers added recently to the network under the Saubhagya scheme are LT consumers, the LT network length has further increased. The impact of the extended LT networks, especially in rural areas, leads to increase in technical losses on the low voltage network. Despite continuous multiple efforts, with the addition of such large number of consumers over the past two years, has led to a decreasing HT:LT network ratio, thereby restricting the DISCOMs from achieving the envisaged loss reduction targets.

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SN Directives 6 Interest on Security Deposit of LT Consumers The Commission has observed that the DISCOMs are passing on the interest on security deposit lying with them to HT consumers but not to LT consumers and therefore directed the DISCOMs to consider adhoc security deposit per KW, from time to time from the date of release of supply and adjust the interest on security deposit to LT

consumers. The explanation for delay in adjusting interest amount of security deposit to all LT consumers is not convincing and DISCOMs are therefore again directed to comply with this long pending important directive on priority basis and subsequent quarterly report of such adjustment to the Commission without fail. Response of DISCOM: The Petitioner hereby submits that interest on security deposit of HT & LTIS category consumers are being passed on as per the norms specified by BERC. For LT consumers, we are in the process of finalizing the methodology developed for reconciliation of the deposited SD amount with the DISCOM. Going forward an IT system-based module for streamlining the process of passing on the accumulated interest amount to LT consumers has been planned and same is under testing phase, the approach considers parameters like contracted

load, date of release of supply, consumer tariff category etc. to arrive at the adhoc security deposit for the consumer. The further testing and institutionalization of this IT based module has been impacted due to the prevailing covid situation and presence of limited workforce in offices to test, institutionalize and implement this module. Same is being re-strategized and we shall once again re-initiate passing on the interest on the deposited SD amount for the LT consumers in a phased manner 7 Asset Register The Commission has directed the DISCOMs to complete the preparation of fixed assets register (voltage wise) positively by 30.03.2019. Both the DISCOMs are not paying due attention to the directive , which is very vital in determination of voltage wise cost of supply and for approving Net fixed assets year on year. The Commission, in view of non-compliance of the directive, again directs the DISCOMs to take urgent action to complete preparation of fixed Asset Register and submit the compliance by 30th September,2019. Response of DISCOM The Petitioner hereby submits it is going to implement ERP (Enterprise Resource Planning) which is mandatory under UDAY scheme of Government of India. It is endeavoring to create and maintain component wise fixed asset register and full details item wise assets to maintain voltage wise cost of supply will be provided after ERP

implementation is done. ERP for all areas of both DISCOMs has been floated by SBPDCL vide NIT NO- 29/PR/SBPDCL/2020. The Techno commercial was opened on 09/09/2020. The technical evaluation is under progress. 8 Directive 8 : Voltage wise Cost of Supply The Commission has observed that the DISCOMs are calculating the voltage wise cost of supply based on assumed technical losses for 33KV, 11KV and LT voltage level without actually making any study as required. The Commission has directed to conduct a study to assess technical losses of all 33KV and 11KV feeders and selected LT lines under selected Distribution Transformers and compute voltage wise cost of supply using the above data.

In response the DISCOMs have submitted that they understand that actual feeder wise information is required for calculation of voltage wise cost of supply. However, exact feeder wise energy accounting could not be with the available data, but appropriate calculation of losses were derived from these datas and assured that they shall conduct voltage wise cost study and voltage wise asset register by FY 2019-20.

Since the directive is not complied with, the Commission reiterates the directive and directs the DISCOMs to pay attention to the subject and voltage wise cost of supply based on technical loss of various voltage levels arrived at the study shall be submitted in next tariff petition. Response of DISCOM: The Petitioner hereby submits energy accounting is being done on some 33/11 kV feeders and defective meters are being replaced. Once ERP is implemented and fixed asset register is complete, voltage wise cost of supply would be submitted to the Hon’ble Commission. 9 Regulatory Accounting The Commission had observed that the Discoms have been maintaining and reporting their financial account in statutory accounting formats which is distinct from the regulatory requirements. Such financial accounts in

statutory accounting formats do not maintain the record of disapprovals. As such, substantial differences in opening balances, expenses during the year, closing balance, etc, at several places have been noticed between

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SN Directives the statutory accounts and regulatory account. Therefore, the Commission had directed the Discoms to maintain and report their financial accounts duly audited by an auditor in regulatory accounting formats in next tariff petitions. . Response of DISCOM The Petitioner hereby submits that currently nowhere in India similar kind of work is being done. Hence, we are not in a position to derive any insight on how to start with the process of regulatory accounting. Under such circumstances, appointing a consultancy firm to carry out such activity and with such experience seems remote.

Hence it has become challenging for us to initiate the process of regulatory accounting. Further, guidance from Hon’ble Commission is also required in arriving at the methodology along with formats for preparing the Regulatory accounts. 10 Outstanding Arrears The Commission has observed that huge amounts of arrears receivable from the government departments, semi-governments and local bodies are outstanding and therefore directed the DISCOMs to contact the concerned heads of government departments/organisations for early payment of the outstanding dues. The Commission has noted that the realisation of arrears pending from government departments, local bodies etc, is not satisfactory. In this respect attention of the DISCOMs are drawn towards the Clause 1.2(1) of the MoU of UDAY wherein it was agreed that all outstanding dues from the State Govt. Departments to DISCOMs for supply of electricity shall be paid by 15.02.2016. DISCOMs are directed to take up this issue with defaulting Departments of the govt and settle the outstanding dues and report to the Commission. Commission will monitor the progress regularly. Response of DISCOM Efforts are regularly been taken to get all the dues from government department received on Monthly basis. Further, departments have been requested to make adequate provision in their budger allocation so that all the arears are being paid by the end of FY 2019-20. Further the petitioner would like to bring this to the notice of the Hon’ble Commission that due to the Covid-19 outbreak, the arrear collection has been severely hampered. However, the DISCOMs are making best efforts to recover the outstanding arrears from the government department. The DISCOMs have provided a consolidated URL Id to respective government department to enable them in getting information regarding their latest payment details and outstanding dues 11 O&M Norms The Commission directs the DISCOMs to include quantitative details of No. of Personnel, No. of Personnel per 1000 consumers, No. of sub-stations and No. of Personnel per sub-station in their audited accounts or submit a separate audit report of said quantitative details for truing up of each of the year of the control period. Response of DISCOM The petitioner hereby submits quantitative details of No. of Personnel, No. of Personnel per 1000 consumers,

No. of sub-stations and No. of Personnel per sub-station will be submitted along with Tariff petition 22 12 Consumer Grievance Redressal Mechanism Keeping in view the difficulty in manually addressing of the large number of consumer grievances in the face of growing number of consumers it was suggested in the tariff order that a separate dedicated E-Enabled centralised Consumers Grievance Redressal and Monitoring System with features of uploading the relevant supporting documents by consumers be explored. Also keeping in view the consumer profile in Bihar it was suggested to introduce effective Consumer Advocacy initiatives highlighting all options for consumer compliant redressal systems. The Commission appreciates the DISCOMs for the action taken in this regard. However, the working of call centre and redressal of grievance at field level have to be monitored in the review meetings upto section level. Random checks to be done whether complaint stated to have been redressed within stipulated time limit is to be done by higher authorities. Response of DISCOM: a. The petitioner has set up 1912 call center for effectively handling consumer grievances. The call center has resolved 80896 complaints during Quarter 1 and Quarter 2 of SBPDCL. Details of SBPDCL’s performance on consumer complaints handling is shared in Annexure 6. b. 1912 platform has a hierarchal escalation process as per SOP defined by Hon’ble BERC. Also all the officers have been sensitized to address consumer complaints without delay. c. Further, SBPDCL, came up with a bridging perform SUVIDHA-a paperless consumer helpdesk, which uses the 1912 complaint management system as well as assists the consumer by listening to their queries and registering the grievances under the appropriate heads, and providing the consumer with a status tracking mechanism.

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SN Directives 13 Strengthening of billing & collection system Feedback received from the consumers during the public hearings of the Commission, indicate need to : (i) Increase the number of billing and collection points especially in rural areas and expand spot billing system. (ii) Provide basic facilities at Billing/Collection centers like chairs/bench to sit, drinking water and shelter for rains/heat to the waiting consumers; (iii) Keep open the billing collection center on Sundays. DISCOMs are directed to send quarterly report to the Commission about the steps taken on above. DISCOMs are also directed to submit the details of category wise/sub-category wise/slab wise details of energy sales, Revenue billed (showing fixed charge and energy charges separately) and Revenue collected during the month by 20th of succeeding month. Response of DISCOM: The Petitioner hereby submits following steps are already in place to address the above concerns: • Various avenues for billing & collection have been introduced to ensure efficient spot billing & revenue collection from consumers. ➢ Billing: Smart meters are being introduced on a pilot-basis, thereby leading to eradication of the concept of billing on assessed units. ➢ Collection: ▪ Setting up of Periodic Revenue collection camps ( Done in RAPDRP and RRF area every month) ▪ Increased follow-up by means of calling & reminders to defaulting consumers ▪ Assistance of the public representatives (Local MLAs, Sarpanch) across villages for convincing people for monthly energy bill payment. • Basic facilities, like drinking water pots at field offices, toilets constructed via Mission 45, benches/chairs for seating, fans & sheds for consumers waiting in-queue, are being provided at every DISCOM office. • Billing collection centers are open on Sundays with employees working on shifts & consumers being notified regarding the same through text messages via their registered mobile nos.

Data required is provided in the reply to Directive no. 1 14 Strengthening of vigilance machinery Commission has come across many grievances relating to corruption especially in rural areas with respect to replacement of transformer, giving electricity connection, billing, removing electrical faults etc. Commission

directs the DISCOMs to evolve a deterrent system of vigilance within their organization to take care of such malpractices. Commission will like to review the steps taken in this direction by the DISCOMs. Response of DISCOM: Presently under SBPDCL, special Task Force(STF) cell is doing work of monitoring and execution for the disposal of different complaint received against electricity theft in urban as well as rural arears. In addition to this, STF cell has also conducted surprise visit/ inspection against the different complaints received related to the collection or malpractices cases. The complaints received within the purview of SOP and supply code is being dealt with at the DISCOM level. Further strict action is taken against any officer found guilty of the aforesaid malpractices. The DISCOM further clarifies that, the State Vigilance Cell functions independently for any criminal complaint received directly from consumers related to corruption that fall within the purview of IPC and CRPC. 15 Power Procurement The DISCOMs are directed to submit the following details of power purchase from each source during the month by 20th day of succeeding month. 1) Source of purchase 2) Available Capacity (MW) 3) Energy Purchased(MU) 4) Fixed Charges Paid (Rs. Crore) 5) Energy Charge Rate (Rs/Kwh) 6) Total Energy Charges Paid (Rs. Crore) 7) Any other Charges Paid (Rs. Crore) (i) Open Access Charges (ii) Any Other Charges 8) Total Cost Paid (Rs. Crore) 9) Day wise details of UI drawls and amount payable/receivable

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SN Directives Response of DISCOM: The Petitioner hereby submits the details separately. 16 Contingency Reserve The DISCOMs are directed to make proper contribution towards contingency reserve in terms of Regulation 24

of BERC (Multi Year Distribution Tariff) Regulations, 2018. Response of the DISCOM: The Petitioner hereby submits that as per MYT Regulations, 2018, a sum not less than 0.25 percent and not more than 0.5 percent of the original cost of fixed assets shall be allowed annually towards such appropriation in the calculation of ARR. Accordingly, the Commission allowed certain sum to be contributed under the said reserve. As per Clause 24.2 of the said Regulation:

The Contingency Reserve shall not be drawn upon during the term of the license except to meet such charges as may be approved by the Commission, such as following:

(a) Expenses or loss of profits arising out of accidents, strikes or circumstances which the management could not have prevented; (b) Expenses on replacement or removal of plant or works other than expenses required for normal maintenance or renewal; (c) Compensation payable under any law for the time being in force and for which no other provision is made: Provided that such drawal from contingency reserve shall be computed after making due adjustment for any other compensation that may have been received by the Licensee as part of an insurance cover.

Both the DISCOMs are under financial loss and the company financial health is not sufficient to contribute towards contingency reserve. The losses is shown below:

• SBPDCL – FY 20: Rs 1664.83 Crores, FY 19: Rs 1813.09 Crores • NBPDCL - FY 20: Rs 1282.88 Crores, FY 19: Rs 595.63 Crores

Apart from that, the prime objective of the said directive was to overcome the losses from the points as mentioned under Clause 24.2 of the said Regulations. The Petitioner has taken comprehensive insurance policies on entire assets of the company (like Standard fire and special perils policy, burglary insurance policy, marine open inland policy, money insurance policy, fidelity insurance guarantee policy, machinery breakdown insurance policy, comprehensive general liability insurance policy etc.) so that the loss incurred may be compensated. 17 Optimization of Power Purchase Cost Power purchase cost accounts for about three fourth of the total expenditure and therefore it has a significant impact on consumer tariff. Therefore, Commission feels that power purchase cost optimization needs to be attempted primarily on two accounts. (a) Forecasting of Power Demand (b) Purchase of Power as per merit order dispatch principal The Commission directs the DISCOMs to intimate the steps taken in this regard by end of first quarter of FY 2019- 20 under the provisions of BERC (Power Purchase and Procurement Process of Licensee Regulations, 2018. Response of DISCOM: Quarter 1

1- Tentative Saving from Surrender of Power by MOD: - In order to minimize the DSM charges, the surplus power was surrendered as per the MOD from thermal plants. Based on this, the considerable tentative savings in surrendering of power is as per the table below. The DSM is dependent on many real time parameters like frequency of each time block, and applicable DSM rate etc. Note: The MOD considered during scheduling of power was as per the variable charge notified in AS-3 format as published by ERPC on fortnightly basis., which is tentative in nature. Month Amount Apr-20 78.44 Cr. May-20 102.93 Cr. June-20 126.77 Cr.

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SN Directives 2- Tentative Profit from RSD of KBUNL-I & BTPS-I: - Considering market scenario, power swapping from exchange was done for KBUNL Stage-I. The exchange rate was lower than energy charge of KBUNL Stage-I. Saving was made by putting KBUNL-I under RSD from Apr-20 to June-20 and power was procured from exchange. Similarly, BTPS Unit #7 was put under RSD from Apr-20 to June-20 and power was procured from exchange. Month Amount (in Cr.) Apr-20 KBUNL-I :7.65 Cr & BTPS-I: 3.37 Cr. Total: 11.02 Cr. May-20 KBUNL-I :4.18 Cr & BTPS-I: 2.61 Cr. Total: 6.79 Cr. June-20 KBUNL-I: 7.49 Cr. & BTPS-I: 4.79 Cr. Total: 12.28 Cr.

3- Tentative Profit from Sell of Power: - In exchange DAM, considering the variable cost of thermal power plant, differential bids were placed in the exchange DAM and the difference between the discovered rate and the respective differential bid rate for the TPP becomes profit margin. Month Amount Apr-20 0.48 Cr. May-20 1.02 Cr. June-20 0.88 Cr.

4- Tentative Profit from Banking of Power: - In order to manage surplus scenario in winter season, banking of power was made with Rajasthan State with the approval from BERC.Power was exported to Rajasthan during off peak hours from 15th Dec 2019 to Feb 2020. Later, the power was imported from Rajasthan during summer season from Apr’20 to Aug’20 on RTC basis. Saving was observed by managing Surplus Deficit scenario in the best possible manner

Quarter 2:

Note: The MOD considered during scheduling of power was as per the variable charge notified in AS-3 format as published by ERPC on fortnightly basis., which is tentative in nature.

Month Amount July-20 87.63 Cr. Aug-20 83.26 Cr. Sept-20 66.56 Cr.

2- Tentative Profit from RSD of KBUNL & BTPS: - Considering market scenario, power swapping from exchange was done for KBUNL Stage-I. The exchange rate was lower than energy charge of KBUNL Stage-I. Saving was made by putting KBUNL-I under RSD from July-20 to Sept-20 and power was procured from exchange. Similarly, BTPS Unit #7 was put under RSD from July-20 to Sept-20 and power was procured from exchange. Month Amount (in Cr.) July-20 KBUNL-I: 10.10 Cr. & BTPS-I: 6.60 Cr. Total: 16.70 Cr. Aug-20 KBUNL-I: 10.90 Cr. & BTPS-I: 7.42 Cr. Total: 18.32 Cr. Sept-20 KBUNL-I: 5.53 Cr. & BTPS-I: 8.52 Cr. Total: 14.05 Cr.

3- Tentative Profit from Sell of Power: -

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SN Directives In exchange DAM, considering the variable cost of thermal power plant, differential bids were placed in the exchange DAM and the difference between the discovered rate and the respective differential bid rate for the TPP became profit margin. Month Amount (in Cr.) July-20 0.80 Cr. Aug-20 0.85 Cr. Sept-20 0.82 Cr.

The Commission has been observing that both the DISCOMs NBPDCL and SBPDCL have been strengthening its infrastructure either under Central Government scheme or under State Government scheme without obtaining mandatory prior regulatory approval of the Commission. The Commission has also been observing that the respective DISCOMs have not been adhering to the scheduled completion time of such capex, including time 18 over-run/cost over-run cost in year on year ARR and truing-up violating the regulatory provisions. The Commission, accordingly, directs both the DISCOMs to strictly adhere to regulatory provisions with respect to Capex and Capitalisation and obtain prior regulatory approval of the Commission for the work-wise, scheme- wise capex and capitalisation giving full details of the same such as funding, scheduled completion date, etc. before starting such capex work. The petitioner hereby states that going forward, it will formulate appropriate procedures so that necessary prior approval can be taken from the Hon’ble Commission for each scheme undertaken by the dsicoms. The DISCOM further wants to highlight the fact that a petition for implementation of smart meter was filed by the petitioner for obtaining necessary approvals from the Commission.

The petitioner further states that it will undertake all possible steps so as to ensure adherence to the scheduled completion time of such capex, including time over-run/cost over-run cost. However, the nation-wise lockdown imposed in the country has severely hampered the working of the DISCOMs which in turn might lead to timeover- run and cost overrun of the some of the projects in the near future.

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Annexure 1: Directive 1 Format 3 A

Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q1) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) Aurangabad Circle 434439 127.10 56.93 32.08 56.35% KJ 134682 15.79 5.56 0.71 12.74% DS1 205826 27.58 10.76 2.87 26.64% DS2D 50947 16.88 8.28 4.58 55.29% HGN 141 0.04 0.01 0.00 0.00% IAS1 18453 6.64 1.47 0.15 9.89% IAS2D 249 10.36 0.74 0.00 0.00% LTIS1D 2167 2.16 1.73 1.59 91.72% LTIS2D 210 1.45 1.56 0.76 49.13% NDS1D 7367 1.57 0.68 0.17 25.47% NDS2D 14215 11.41 8.44 5.49 65.10% PWWD 70 0.14 0.33 0.03 10.18% SS1D 1 0.00 0.03 0.00 0.00% SS2 61 0.19 0.64 0.55 85.62% HT and RTS 50 32.91 16.69 15.18 90.92% Bhagalpur Circle 715199 186.07 102.95 51.67 50.19% KJ 184275 21.55 8.04 0.98 12.13% DS1 363164 59.17 22.94 7.47 32.56% DS2D 111035 51.90 29.13 18.25 62.64% DS3D 20 0.01 0.00 0.00 60.23% HGN 696 0.41 0.12 0.04 30.38% IAS1 10704 3.30 0.58 0.07 12.84% IAS2D 372 0.58 0.10 0.00 0.03% LTIS1D 8026 12.34 7.78 3.30 42.45% LTIS2D 124 1.09 0.86 0.74 86.84% NDS1D 11204 4.65 2.40 1.24 51.72% NDS2D 24982 19.91 15.72 11.07 70.43% PWWD 332 1.96 2.84 0.27 9.41% SS1D 80 0.37 0.86 0.00 0.02% SS2 81 0.04 0.62 0.00 0.00% HT and RTS 104 8.80 10.96 8.25 75.23% Bhojpur Circle 665674 150.12 77.28 40.95 52.99% KJ 213875 23.09 8.40 1.41 16.82% DS1 294516 46.96 16.84 6.08 36.10% DS2D 97892 39.26 19.32 13.48 69.76% HGN 159 0.07 0.08 0.00 0.22% IAS1 14922 4.35 0.70 0.17 24.99% IAS2D 613 0.15 0.02 0.00 0.95% LTIS1D 3319 3.83 3.05 2.59 85.09% LTIS2D 220 2.00 1.75 1.00 56.73% NDS1D 15475 3.49 1.55 0.66 42.37% NDS2D 24271 15.71 11.25 8.99 79.90% PWWD 238 1.45 1.84 0.00 0.00% SS1D 5 0.01 0.01 0.00 0.00% SS2 80 0.25 1.67 0.00 0.00% HT and RTS 89 9.50 10.80 6.57 60.81% Gaya Circle 745885 200.49 115.27 54.69 47.44% KJ 250331 29.86 12.92 0.69 5.32% DS1 262418 39.83 15.72 3.58 22.78% DS2D 134709 62.42 35.47 22.04 62.14% DS3D 5 0.00 0.00 0.00 7.82% HGN 643 0.37 0.10 0.00 4.72% IAS1 39845 14.90 5.33 0.21 3.88%

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Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q1) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) IAS2D 349 0.08 0.02 0.00 0.80% LTIS1D 6366 8.71 6.82 4.31 63.12% LTIS2D 212 2.09 1.57 1.37 87.36% NDS1D 17973 7.57 4.30 2.48 57.83% NDS2D 32220 20.08 16.35 10.58 64.70% PWWD 390 1.58 2.09 0.02 1.00% SS1D 225 0.58 0.57 0.00 0.05% SS2 44 0.02 0.05 0.00 0.00% HT and RTS 155 12.41 13.96 9.41 67.37% Jamui Circle 344727 69.50 31.33 14.23 45.42% KJ 150073 17.97 6.34 0.66 10.45% DS1 127625 20.69 7.45 2.05 27.59% DS2D 35931 13.53 7.08 4.00 56.55% HGN 531 0.45 0.14 0.00 0.34% IAS1 13986 3.53 0.74 0.06 8.63% IAS2D 109 0.02 0.02 0.00 0.57% LTIS1D 2023 1.81 1.41 1.29 91.28% LTIS2D 72 0.49 0.38 0.27 73.03% NDS1D 6649 3.62 1.95 1.34 68.79% NDS2D 7440 5.07 3.70 2.97 80.45% PWWD 186 0.45 0.33 0.00 0.00% SS1D 65 0.06 0.04 0.12 280.08% SS2 18 0.00 0.03 0.19 568.95% HT and RTS 19 1.81 1.72 1.25 72.44% Munger Circle 343971 87.80 44.66 28.37 63.52% KJ 86083 10.90 3.54 0.96 26.98% DS1 155471 27.59 9.68 4.41 45.56% DS2D 74642 25.27 13.15 9.76 74.23% HGN 313 0.29 0.08 0.00 4.73% IAS1 6933 1.09 0.17 0.04 26.35% IAS2D 175 0.07 0.02 0.00 0.02% LTIS1D 2578 3.13 2.32 1.99 85.85% LTIS2D 97 0.54 0.40 0.30 76.83% NDS1D 6381 3.50 2.06 1.45 70.47% NDS2D 10831 6.94 5.32 3.94 74.12% PWWD 306 0.44 0.47 0.02 5.18% SS1D 77 0.10 0.07 0.03 51.88% SS2 49 0.03 0.11 0.00 0.00% HT and RTS 35 7.90 7.26 5.44 74.90% Nalanda Circle 829647 204.13 96.21 54.05 56.18% KJ 242226 26.93 9.85 1.63 16.53% DS1 360861 64.18 22.46 7.60 33.86% DS2D 114104 41.39 20.93 15.91 76.02% DS3D 6 0.00 0.00 0.00 62.14% HGN 1907 3.63 1.05 0.04 3.41% IAS1 57449 20.48 3.30 0.71 21.63% IAS2D 516 0.95 0.15 0.00 0.00% LTIS1D 5498 5.41 4.15 3.58 86.30% LTIS2D 183 2.12 1.25 1.06 84.57% NDS1D 13405 3.09 1.20 0.55 46.06% NDS2D 32579 18.11 13.27 10.18 76.76% PWWD 622 4.57 4.65 2.54 54.59% SS1D 103 0.07 0.04 0.13 293.20% SS2 83 0.14 0.87 0.25 29.29% HT and RTS 105 13.05 13.02 9.85 75.67% Patna Circle 555903 240.50 152.26 114.11 74.94%

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Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q1) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) KJ 100663 12.20 4.46 0.76 16.96% DS1 279459 46.58 16.01 7.56 47.18% DS2D 102926 23.80 11.95 8.04 67.23% DS3D 132 0.02 0.01 0.01 47.16% HGN 209 0.22 0.07 0.07 110.73% IAS1 27776 5.53 0.86 0.22 25.82% IAS2D 679 1.03 0.02 0.01 72.00% LTIS1D 5565 5.60 4.12 3.43 83.19% LTIS2D 761 5.57 3.84 3.16 82.16% NDS1D 12586 3.51 1.46 0.74 50.92% NDS2D 24620 14.55 10.89 8.50 78.07% PWWD 169 3.55 2.99 0.24 8.03% SS1D 58 0.03 0.03 0.00 0.24% SS2 19 0.03 0.26 0.00 0.00% HT and RTS 281 118.28 95.29 81.38 85.40% PESU(E) Circle 264999 274.44 162.93 174.57 107.14% KJ 11 0.00 0.00 0.00 12.65% DS1 6 0.00 0.00 0.00 0.00% DS2D 204203 166.27 72.91 57.00 78.19% IAS1 252 0.22 0.02 0.01 45.34% IAS2D 7 0.00 0.00 0.00 34.68% LTIS1D 2510 4.63 3.47 3.10 89.32% LTIS2D 474 6.19 4.28 4.05 94.60% NDS2D 57003 43.97 28.95 20.42 70.53% PWWD 77 2.41 9.23 17.04 184.71% SS1D 32 0.09 0.07 0.01 8.09% SS2 74 0.00 4.68 48.11 1027.56% HT and RTS 350 50.67 39.33 24.84 63.17% PESU(W) Circle 327157 341.58 188.91 158.24 83.76% KJ 197 0.02 0.01 0.01 70.00% DS1 65 0.00 0.00 0.00 -15.69% DS2D 269433 225.74 103.64 90.72 87.53% HGN 10 0.02 0.00 0.00 71.67% IAS1 862 0.39 0.02 0.01 60.89% IAS2D 22 0.00 0.00 0.00 -34.92% LTIS1D 1570 2.62 1.92 1.70 88.74% LTIS2D 129 1.45 0.86 0.82 95.48% NDS1D 25 0.00 0.00 0.00 0.00% NDS2D 54038 51.50 33.37 25.82 77.37% PWWD 124 3.31 2.88 1.58 54.75% SS1D 88 0.18 0.23 0.04 17.74% SS2 91 0.00 3.81 0.00 0.00% HT and RTS 503 56.34 42.16 37.54 89.04% Sasaram Circle 670249 188.89 114.65 69.41 60.54% KJ 164275 16.67 6.19 0.88 14.26% DS1 306137 46.13 17.90 5.82 32.53% DS2D 105248 41.62 23.69 11.00 46.44% DS3D 4 0.00 0.00 0.00 68.22% HGN 850 2.67 0.84 0.01 1.21% IAS1 42994 12.59 1.95 0.65 33.28% IAS2D 495 0.17 0.15 0.01 5.87% LTIS1D 7658 4.43 4.08 3.13 76.75% LTIS2D 1243 6.38 6.90 5.13 74.34% NDS1D 14011 4.15 2.05 0.72 35.14% NDS2D 26978 16.05 12.07 9.49 78.61% PWWD 190 0.96 1.08 0.28 26.46%

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Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q2) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) Aurangabad Circle 441247 134.15 66.45 40.03 60% KJ 134694 18.65 7.06 1.36 19% DS1 209276 40.35 19.32 5.11 26% DS2D 51700 17.72 10.01 7.87 79% HGN 560 0.07 0.02 0.00 4% IAS1 18818 8.31 1.64 0.21 13% IAS2D 298 3.71 0.28 0.00 0% LTIS1D 2336 2.06 1.98 1.72 87% LTIS2D 214 0.42 0.47 0.21 45% NDS1D 8622 1.67 0.83 0.38 46% NDS2D 14547 10.15 8.85 6.14 69% PWWD 70 0.14 0.24 0.00 0% SS1D 1 0.00 0.03 0.00 0% SS2 61 0.12 0.52 0.56 107% HT and RTS 50 30.79 15.19 16.45 108% Bhagalpur Circle 728750 215.57 126.63 68.94 54% KJ 184843 22.97 9.23 1.92 21% DS1 372118 74.02 30.99 13.02 42% DS2D 112136 58.29 34.60 25.57 74% DS3D 20 0.01 0.00 0.00 64% HGN 1041 0.46 0.16 0.02 14% IAS1 11558 3.69 0.56 0.11 19% IAS2D 402 0.26 0.09 0.00 0% LTIS1D 8340 12.58 9.38 3.87 41% LTIS2D 126 0.83 0.75 0.66 88% NDS1D 12410 5.75 3.09 1.94 63% NDS2D 25144 23.18 20.31 12.73 63% PWWD 348 3.46 4.38 0.10 2% SS1D 80 0.26 0.80 0.00 0% SS2 81 0.04 0.38 0.00 0% HT and RTS 103 9.78 11.91 9.00 76% Bhojpur Circle 671813 170.45 93.63 55.14 59% KJ 213880 25.14 9.94 2.48 25% DS1 296919 55.44 22.14 10.03 45% DS2D 98839 45.70 24.90 21.46 86% HGN 437 0.07 0.08 0.00 3% IAS1 15450 7.04 0.82 0.20 24% IAS2D 987 0.23 0.03 0.01 37% LTIS1D 3640 3.77 3.55 2.98 84%

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Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q2) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) LTIS2D 220 1.16 1.12 0.83 74% NDS1D 16408 3.77 1.84 0.97 53% NDS2D 24617 16.37 13.50 10.26 76% PWWD 238 1.38 2.74 0.05 2% SS1D 5 0.00 0.00 0.00 0% SS2 80 0.19 1.61 0.00 0% HT and RTS 93 10.19 11.35 5.86 52% Gaya Circle 758812 366.22 225.52 72.66 32% KJ 250406 38.32 18.05 1.33 7% DS1 268963 48.83 21.93 6.45 29% DS2D 136421 79.38 50.88 30.06 59% DS3D 5 0.00 0.00 0.00 27% HGN 1953 1.47 0.44 0.01 1% IAS1 40347 23.92 6.59 0.32 5% IAS2D 400 0.18 0.02 0.01 96% LTIS1D 6642 110.70 73.21 5.88 8% LTIS2D 219 2.19 1.95 1.80 92% NDS1D 19747 9.06 5.16 2.84 55% NDS2D 32895 36.25 29.50 12.41 42% PWWD 391 1.48 1.92 0.04 2% SS1D 225 1.45 1.20 0.00 0% SS2 44 0.03 0.06 0.00 0% HT and RTS 154 12.97 14.62 11.50 79% Jamui Circle 347813 103.13 43.39 18.79 43% KJ 150072 22.19 8.38 1.22 15% DS1 128875 33.37 13.22 3.63 27% DS2D 36419 14.13 7.50 5.99 80% HGN 768 2.46 0.73 0.00 0% IAS1 14208 15.83 1.57 0.11 7% IAS2D 209 0.12 0.01 0.00 2% LTIS1D 2212 1.85 1.70 1.39 82% LTIS2D 73 1.73 1.27 0.37 29% NDS1D 7103 3.53 1.94 1.30 67% NDS2D 7585 5.53 4.53 3.17 70% PWWD 184 0.72 0.79 0.29 36% SS1D 66 0.12 0.07 0.00 0% SS2 18 0.00 0.14 0.00 0% HT and RTS 21 1.56 1.54 1.32 85% Munger Circle 347191 104.50 54.02 39.86 74% KJ 86109 14.52 5.22 1.68 32% DS1 156602 30.99 12.10 6.97 58% DS2D 75367 28.60 15.62 13.89 89% HGN 528 0.41 0.12 0.01 7% IAS1 7263 5.23 0.44 0.06 14% IAS2D 257 0.05 0.01 0.00 0% LTIS1D 2707 2.82 2.77 2.37 86% LTIS2D 95 0.50 0.49 0.45 91% NDS1D 6847 3.52 2.28 1.87 82%

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Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q2) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) NDS2D 10947 7.22 5.96 4.70 79% PWWD 309 0.54 0.62 0.16 26% SS1D 77 0.86 0.65 0.00 0% SS2 49 1.03 0.32 0.00 0% HT and RTS 34 8.22 7.44 7.70 104% Nalanda Circle 836233 246.15 137.08 68.64 50% KJ 242229 28.59 11.68 2.70 23% DS1 363740 61.38 26.47 12.06 46% DS2D 115005 45.65 25.63 22.93 89% DS3D 7 0.00 0.00 0.00 75% HGN 2086 17.58 13.50 0.05 0% IAS1 57947 24.19 3.40 1.00 29% IAS2D 796 1.00 0.17 0.00 0% LTIS1D 5747 4.88 4.61 3.92 85% LTIS2D 189 1.50 1.38 1.25 91% NDS1D 14610 3.19 1.45 0.93 65% NDS2D 32936 40.55 31.22 12.84 41% PWWD 648 4.56 4.16 2.80 67% SS1D 103 0.06 0.05 0.00 6% SS2 83 0.14 0.95 0.59 62% HT and RTS 107 12.89 12.40 7.56 61% Patna Circle 562376 359.21 222.62 185.62 83% KJ 100666 13.55 5.39 1.21 22% DS1 282849 57.09 22.82 11.18 49% DS2D 103504 27.92 15.52 10.74 69% DS3D 135 0.04 0.02 0.01 48% HGN 516 0.27 0.10 0.01 12% IAS1 28470 6.31 0.90 0.31 35% IAS2D 1027 0.33 0.11 0.00 0% LTIS1D 5693 4.85 4.50 3.85 86% LTIS2D 765 6.10 5.15 4.66 90% NDS1D 13463 3.75 1.70 1.16 68% NDS2D 24748 15.43 13.03 9.18 70% PWWD 173 1.33 1.53 0.78 51% SS1D 58 0.03 0.03 0.00 0% SS2 19 0.03 0.18 0.00 0% HT and RTS 290 222.19 151.63 142.51 94% PESU(E) Circle 266992 289.79 197.58 175.34 89% KJ 11 0.01 0.00 0.00 18% DS1 6 0.00 0.00 0.00 0% DS2D 206047 165.10 92.37 88.49 96% IAS1 252 0.17 0.01 0.01 68% IAS2D 9 0.00 0.00 0.00 251% LTIS1D 2491 6.06 5.06 4.30 85% LTIS2D 475 9.97 7.36 7.07 96% NDS2D 57162 40.65 35.07 27.62 79% PWWD 77 2.58 2.24 0.16 7% SS1D 32 0.09 0.07 0.00 0%

South Bihar Power Distribution Company Limited 189

Directive 1: Format 3(a) Performance of DISCOMs- Revenue Billing and Collection Efficiency for (Q2) (FY 2020-21) Revenue No of Energy Sold Revenue Billed for Sale Revenue Category & Sub-Category Collected (Rs Consumers (MUs) of Energy (Rs Crores) Collected (%) Crores) SS2 74 0.00 2.72 0.00 0% HT and RTS 356 65.16 52.67 47.70 91% PESU(W) Circle 329483 374.59 270.35 231.03 85% KJ 197 0.04 0.02 0.01 34% DS1 182 0.02 0.01 0.01 140% DS2D 271498 232.46 138.76 127.85 92% HGN 11 0.02 0.00 0.00 94% IAS1 865 0.29 0.02 0.02 127% IAS2D 27 0.00 0.00 0.00 5% LTIS1D 1570 2.63 2.38 2.12 89% LTIS2D 125 1.65 1.31 1.03 79% NDS1D 50 0.01 0.00 0.01 117% NDS2D 54147 51.61 45.90 33.39 73% PWWD 124 12.90 11.69 1.08 9% SS1D 89 0.19 0.15 0.02 11% SS2 91 0.00 3.40 2.86 84% HT and RTS 507 72.76 66.71 62.63 94% Sasaram Circle 679024 210.74 129.10 76.35 59% KJ 165986 23.64 9.14 1.53 17% DS1 309382 55.83 24.05 9.07 38% DS2D 106091 39.43 22.70 17.59 77% DS3D 4 0.00 0.00 0.00 39% HGN 1464 2.64 0.09 0.04 43% IAS1 43407 13.98 2.12 0.72 34% IAS2D 622 0.10 0.04 0.00 0% LTIS1D 8001 3.87 4.28 3.71 87% LTIS2D 1241 1.55 1.81 1.57 87% NDS1D 15236 4.43 2.21 1.18 53% NDS2D 27231 19.37 16.76 11.14 66% PWWD 190 0.74 0.97 0.53 55% SS1D 5 0.03 0.02 0.00 0% SS2 59 0.03 1.59 0.01 1% HT and RTS 105 45.10 43.31 29.26 68% Grand Total 5969734 2574.50 1566.36 1032.40 66%

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Annexure 2: Directive 1 Format 3 B

Circle wise Collection and Billing Efficiency for the month of Apr-2020 Revenue Revenue billed collected Energy Input Energy Sold % of Billing during the Revenue Division/Circle during the (MUs) (MUs) Efficiency month (Rs Collected (%) month (Rs Crores) Crores) Aurangabad 78.28 34.81 44.47% 16.20 10.29 63.51% Bhagalpur 92.07 46.28 50.27% 30.94 6.09 19.68% Bhojpur 95.16 33.62 35.33% 21.67 5.94 27.41% Gaya 126.59 51.03 40.31% 36.61 8.78 23.98% Jamui 44.38 16.95 38.18% 9.38 2.49 26.54% Munger 49.98 18.52 37.06% 11.59 4.81 41.51% Nalanda 114.21 45.62 39.94% 26.79 9.91 36.99% Patna 170.43 34.38 20.17% 33.05 41.20 124.65% PESU (E) 80.71 39.02 48.34% 41.09 23.82 57.96% PESU (W) 95.86 60.68 63.31% 47.12 34.71 73.67% Sasaram 138.68 47.20 34.03% 34.73 12.76 36.74% Grand Total 1,086.35 428.11 39.41% 309.18 160.80 52.01%

Circle wise Collection and Billing Efficiency for the month of May-2020 % of Revenue billed Revenue collected Revenue Energy Input Division/Circle Energy Sold (MUs) Billing during the month during the month Collected (MUs) Efficiency (Rs Crores) (Rs Crores) (%) Aurangabad 87.67 46.50 53.04% 21.99 7.70 35.02% Bhagalpur 103.12 79.11 76.72% 36.95 18.69 50.59% Bhojpur 106.58 62.07 58.24% 28.00 14.66 52.35% Gaya 141.79 86.27 60.84% 43.20 18.42 42.63% Jamui 49.71 28.92 58.18% 11.86 4.48 37.78% Munger 55.97 38.62 69.00% 16.40 9.52 58.05% Nalanda 127.92 81.92 64.04% 33.28 17.48 52.52% Patna 190.88 88.96 46.61% 62.46 19.61 31.39% PESU (E) 88.78 91.16 102.67% 55.14 23.88 43.31% PESU (W) 107.36 120.94 112.65% 65.00 43.50 66.92% Sasaram 155.33 72.96 46.97% 39.95 19.54 48.91% Grand Total 1,215.10 797.43 65.63% 414.25 197.48 47.67%

Circle wise Collection and Billing Efficiency for the month of June-2020 Revenue Revenue billed collected Energy Input Energy Sold % of Billing during the Revenue Division/Circle during the (MUs) (MUs) Efficiency month (Rs Collected (%) month (Rs Crores) Crores) Aurangabad 101.76 45.79 45.00% 18.71 17.05 91.12% Bhagalpur 119.69 60.68 50.70% 35.05 24.83 70.83% Bhojpur 123.70 54.43 44.00% 27.60 21.79 78.95% Gaya 164.57 63.19 38.40% 35.45 27.47 77.48% Jamui 57.70 23.63 40.96% 10.09 7.14 70.80% Munger 64.97 30.66 47.19% 16.66 14.30 85.83% Nalanda 148.47 76.59 51.58% 36.11 28.68 79.42% Patna 221.55 117.16 52.88% 56.72 59.66 105.18% PESU (E) 110.48 144.25 130.57% 66.68 64.49 96.72%

South Bihar Power Distribution Company Limited 191

PESU (W) 124.61 159.95 128.35% 76.77 79.48 103.52% Sasaram 180.29 68.72 38.12% 39.94 30.27 75.78% Grand Total 1,417.80 845.04 59.60% 419.80 375.16 89.37%

Circle wise Collection and Billing Efficiency for the month of July-2020 % of Revenue billed Revenue collected Revenue Energy Input Division/Circle Energy Sold (MUs) Billing during the month during the month Collected (MUs) Efficiency (Rs Crores) (Rs Crores) (%) Aurangabad 99.10 43.58 43.97% 20.11 14.24 70.82% Bhagalpur 125.67 69.02 54.92% 41.18 23.54 57.16% Bhojpur 124.43 52.11 41.88% 29.63 19.68 66.42% Gaya 184.49 90.07 48.82% 53.24 25.31 47.54% Jamui 60.06 25.19 41.93% 11.96 6.95 58.09% Munger 68.71 31.77 46.25% 17.30 13.15 76.02% Nalanda 159.12 67.81 42.62% 35.04 24.42 69.69% Patna 207.65 111.73 53.81% 70.88 65.71 92.71% PESU (E) 125.69 86.62 68.91% 59.83 58.87 98.39% PESU (W) 152.89 112.61 73.66% 82.66 89.97 108.84% Sasaram 191.30 65.84 34.42% 40.47 27.69 68.42% Grand Total 1,499.10 756.34 50.45% 462.31 369.53 79.93%

Circle wise Collection and Billing Efficiency for the month of Aug-2020 % of Revenue billed Revenue collected Revenue Energy Input Division/Circle Energy Sold (MUs) Billing during the month during the month Collected (MUs) Efficiency (Rs Crores) (Rs Crores) (%) Aurangabad 111.88 39.23 35.06% 20.32 19.71 97.00% Bhagalpur 135.73 72.45 53.38% 42.67 25.27 59.22% Bhojpur 140.64 57.02 40.54% 30.54 20.37 66.69% Gaya 203.30 80.72 39.70% 47.69 26.95 56.52% Jamui 61.39 29.96 48.81% 12.91 6.47 50.12% Munger 75.58 35.50 46.97% 18.07 14.07 77.88% Nalanda 186.21 67.07 36.02% 35.77 24.71 69.09% Patna 224.26 115.11 51.33% 72.29 60.95 84.32% PESU (E) 116.76 103.37 88.53% 68.26 66.49 97.40% PESU (W) 147.15 133.42 90.67% 95.61 77.02 80.56% Sasaram 206.60 67.30 32.57% 41.85 28.69 68.55% Grand Total 1,609.50 801.16 49.78% 485.97 370.70 76.28%

Circle wise Collection and Billing Efficiency for the month of Sept-2020 Revenue Revenue billed collected Energy Input Energy Sold % of Billing during the Revenue Division/Circle during the (MUs) (MUs) Efficiency month (Rs Collected (%) month (Rs Crores) Crores) Aurangabad 115.23 51.33 44.55% 26.01 13.70 52.67% Bhagalpur 139.79 74.10 53.01% 42.77 24.69 57.72% Bhojpur 145.75 61.32 42.07% 33.44 21.44 64.11% Gaya 209.40 195.43 93.33% 124.59 26.11 20.96% Jamui 63.23 47.99 75.89% 18.51 7.38 39.86% Munger 77.85 37.25 47.85% 18.64 13.28 71.23% Nalanda 191.79 111.27 58.02% 66.27 27.32 41.23% Patna 230.98 132.36 57.30% 79.44 83.20 104.73% PESU (E) 129.51 99.80 77.06% 69.47 58.77 84.60%

South Bihar Power Distribution Company Limited 192

PESU (W) 163.72 129.19 78.91% 92.06 69.34 75.32% Sasaram 212.80 77.60 36.47% 46.74 29.11 62.28% Grand Total 1,680.05 1,017.64 60.57% 617.95 374.34 60.58%

South Bihar Power Distribution Company Limited 193

Annexure 3: Directive 1 Format 5 Directive 1: Format 5 Performance of DISCOMs- Timely delivery of Bills for Q1 and Q2 (FY 2020-21)