2
TARIFF ORDER
PROVISIONA L TRUE -UP F OR FY 2019-20
REVIEW FOR FY 2020-21 AND DETERMINATION OF AGGREGATE REVENUE REQUIREMENT & TRANSMISSION TARIFF FOR FY 2021-22
FOR
MANIPUR STATE POWER COMPANY LIMITED
Petition (ARR & Tariff) No. 2 of 2021
JOINT ELECTRICITY REGULATORY COMMISSION FOR MANIPUR AND MIZORAM
MSPCL Tariff Order for FY 2021-22
CONTENTS ORDER ...... 1 1. Introduction ...... 7 1.1 JERC for Manipur and Mizoram (JERC, M&M) ...... 7 1.2 Manipur State Power Company Ltd ...... 9 2. Summary of the ARR & Tariff Petition for FY 2021-22 ...... 11 2.1 Aggregate Revenue Requirement (ARR) ...... 11 2.2 Target availability ...... 11 2.3 Transmission Loss ...... 11 2.4 Transmission ARR and transmission tariff proposal for FY 2021-22 ...... 12 2.5 Rebate ...... 13 2.6 Late Payment Surcharges ...... 13 2.7 Incentive: ...... 13 2.8 Prayer ...... 14 3. Brief outline of objections raised, response from MSPCL and Commission’s observation ..... 15 3.1 Introduction: ...... 15 3.2 Public Hearing: ...... 15 3.3 Public Hearing Process ...... 15 4. MSPCL – An Overview ...... 17 4.1 Background ...... 17 5. Provisional True up of ARR for FY 2019-20 ...... 21 5.0 Introduction ...... 21 5.1 Background ...... 21 5.2 Transmission Loss ...... 22 5.3 Operation and Maintenance Expenses ...... 23 5.4 Capital Investment Plan ...... 27 5.5 Depreciation ...... 31 5.6 Interest and Finance Charges ...... 33 5.7 Interest on Working Capital ...... 34 5.8 Return on Equity (with Tax) ...... 35 5.9 Non-Tariff Income ...... 36 5.10 Aggregate Revenue Requirement ...... 37 6. Annual Performance Review of FY2020-21 ...... 41 6.1 Background ...... 41 6.2 Transmission system availability ...... 41 6.3 Transmission Losses ...... 41 6.4 Energy Requirement ...... 42 6.5 Operation and Maintenance Expenses ...... 43 6.5.1 Employee Cost ...... 43 6.5.2 Repair & Maintenance Expenses ...... 44 6.5.3 Administration and General Expenses ...... 45 6.5.4 Summary of O&M expenses ...... 46 6.6 Capital Expenditure Plan for FY 2020-21 ...... 46 6.7 Gross Fixed Assets ...... 55 6.7.1 Depreciation ...... 57 6.8 Interest and Finance charges ...... 58 6.9 Interest on working capital ...... 59 6.10 Return on Equity ...... 60 6.11 Non-Tariff Income ...... 61 6.12 Aggregate Revenue Requirement ...... 61
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7. Determination of Transmission ARR for FY 2021-22...... 63 7.1 Introduction ...... 63 7.2 Contracted Capacity in Manipur ...... 64 7.3 Proposed capital expenditure on ongoing and new projects during FY 2021-22 ...... 66 7.4 Operation & Maintenance Expenses ...... 76 7.4.1 Operation and Maintenance expenses comprise of the following heads: ...... 76 7.4.2 Employee Cost ...... 76 7.4.3 Repairs & Maintenance Expenses ...... 78 7.4.4 Administration & General Expense ...... 79 7.5 Summary of O&M expenses ...... 80 7.6 Depreciation ...... 80 7.7 Interest and Finance Charges ...... 81 7.8 Interest on Working Capital ...... 82 7.9 Return of Equity ...... 83 7.10 Non-tariff Income ...... 84 7.11 Aggregate Revenue Requirement (ARR) for FY 2021-22 ...... 85 7.12 Transmission Tariff ...... 86 7.13 Rebate ...... 89 7.14 Late Payment Surcharges ...... 89 7.15 Incentive ...... 89 8. Directives ...... 91 Annexure - I ...... 101 Annexure - II ...... 117
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LIST OF TABLES
Table 2.1: Aggregate Revenue Requirement for FY 2021-22 ...... 11 Table 2.2: Transmission Tariff projected by MSPCL for FY 2021-22 ...... 13 Table 5.1: Actual Employee Expenses for FY 2019-20 ...... 23 Table 5.2: R&M Expenses for FY 2019-20 ...... 24 Table 5.3: Actual A&G Expenses for FY 2019-20 ...... 25 Table 5.4: Total O&M Expenses for FY 2019-20 claimed in filing by MSPCL ...... 26 Table-5.5: Capital Expenditure for FY 2019-20 ...... 27 Table 5.6: Capitalised Assets in FY 2019-20 ...... 30 Table 5.7: Capital Expenditure and Capitalisation for FY 2019-20 ...... 30 Table 5.8: Capital Works in Progress in FY 2019-20 ...... 30 Table 5.9: Capital Works in Progress in FY 2019-20 ...... 31 Table 5.10: Commission considers CWIP for FY 2019-20 ...... 31 Table 5.11: Depreciation approved by Commission earlier for FY 2019-20 ...... 32 Table 5.12: Actual Depreciation for FY 2019-20...... 32 Table 5.13: Interest on Working Capital for FY 2019-20 ...... 34 Table 5.14: Return on Equity for FY 2019-20 ...... 35 Table 5.15: Non-Tariff Income for FY 2019-20 ...... 36 Table 5.16: Aggregate Revenue Requirement furnished by MSPCL for FY 2019-20 ...... 37 Table 6.1 : Energy to be transmitted for FY 2020-21 ...... 42 Table 6.2:Employee cost for FY 2020-21 ...... 44 Table 6.3 : Revised R&M expense for FY 2020-21 ...... 45 Table 6.4: Proposed A&G Expenses of MSPCL for FY 2020-21 ...... 46 Table 6.5: O&M Expenses for FY 2020-21 by MSPCL Vs. Commission provisionally ...... 46 Table 6.6: Capital Expenditure for FY 2020-21 estimated by MSPCL ...... 47 Table 6.7: Capitalised Assets in FY 2020-21 ...... 53 Table 6.8: CWIP, Capital Expenditure and Capitalisation in FY 2020-21 ...... 54 Table 6.9: 2020-21 CWIP and Capitalisation as per Commission ...... 54 Table 6.10: Gross Fixed Assets ...... 55 Table 6.11: GFA adopted by the Commission for FY 2020-21 after review ...... 56 Table 6.11: Depreciation for FY 2020-21 ...... 57 Table 6.12: Depreciation to be considered for FY 2020-21 ...... 57 Table 6.13: Depreciation for FY 2020-21 approved by the Commission under APR ...... 58 Table 6.14: Interest and Finance Charges for FY 2020-21 ...... 58 Table 6.15: Interest on Working Capital for the FY 2020-21 ...... 59 Table 6.16: Return on Equity for FY 2020-21 ...... 60 Table 6.17: Non-Tariff Income for FY 2020-21 ...... 61 Table 6.18: Aggregate Revenue Requirement for FY 2020-21 ...... 61 Table 6.19: Aggregate Revenue Requirement Commission approved ...... 62 Table 7. 1: MSPCL Transmission infrastructure snapshot ...... 64 Table 7.2: Proposed Capital expenditure on ongoing and new projects during FY 2021-22 ...... 66 Table 7.3: Proposed Funding of capital Expenditure during FY 2021-22 ...... 74 Table 7.4: Proposed Capitalization for the FY 2021-22 ...... 74 Table 7.5: Capital Expenditure & Capital Work-in-Progress ...... 74 Table 7.6: Projected Gross Fixed Assets for FY 2021-22 ...... 75 Table 7.7: Proposed Gross Fixed Assets for FY 2021-22 ...... 75 Table 7.8: Projection of MSPCL Employee for FY 2021-22 ...... 77 Table 7.9: Proposed Employee Cost for FY 2021-22 ...... 77 Table 7.10: Proposed Repairs & Maintenance Expense for FY 2021-22 ...... 78 Table 7.11: Proposed A&G Expenses for FY 2021-22 ...... 79 Table 7.12: Projected Depreciation for FY 2021-22 ...... 81 Table 7.13: Proposed Depreciation for FY 2021-22 ...... 81 Table 7.14: Interest on Working Capital ...... 82 Table 7.15: Proposed Return on Equity for FY 2021-22 ...... 83 Table 7.16: Proposed Non-tariff Income for FY 2021-22 ...... 84 Table 7.17: Proposed Aggregate Revenue Requirement for FY 2021-22 ...... 85 Table 7.18: MSPCL ARR approved by the Commission for FY 2021-22 ...... 85 Table 7.19: Transmission Tariff for FY 2021-22 ...... 87 Table 7.20: Commission approved Transmission Tariff for FY 2021-22 ...... 88
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ABBREVIATIONS
Abbreviation Description A&G Administrative and General AAD Advance Against Depreciation ARR Aggregate Revenue Requirement CEA Central Electricity Authority CERC Central Electricity Regulatory Commission CWIP Capital Work in Progress DONER Ministry of Development of North Eastern Region DPS Delayed Payment Surcharge EA, 2003 Electricity Act, 2003 EDM Electricity Department Manipur EHT Extra High Tension FSA Fuel Surcharge Adjustment FY Financial Year GFA Gross Fixed Assets GOI Government of India HT High Tension IEGC Indian Electricity Grid Code ISGS Inter State Generating Station IR Inter Regional Joint Electricity Regulatory Commission for Manipur JERC and Mizoram kV Kilovolt kVA Kilovolt-ampere kW Kilowatt kWh kilowatt-hour LT Low Tension MAT Minimum Alternate Tax MDI Maximum Demand Indicators MSPCL Manipur State Power Company Limited MSPDCL Manipur State Power Distribution Company Limited MUs Million Units MYT Multi Year Tariff NEC North Eastern Council NLCPR Non Lapsable Central Pool of Resources NLDC National Load Despatch Centre NTI Non-Tariff Income O&M Operation and Maintenance PGCIL Power Grid Corporation of India Ltd PLF Plant Load Factor POSOCO Power System Operation Corporation Limited PPA Power Purchase Agreement PWW Public Water Works
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Abbreviation Description R&M Repair and Maintenance Restructured Accelerated Power Development and RAPDRP Return Programme RoE Return of Equity SBAR State Bank Advance Rate SLDC State Load Despatch Centre T&D Transmission and Distribution UI Unscheduled Interchange RE Revised Estimate
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JOINT ELECTRICITY REGULATORY COMMISSION FOR MANIPUR AND MIZORAM
TBL Bhawan, 2nd to 5th Floor, Peter Street, E18, Khatla, Aizawl, Mizoram – 796001
Petition (ARR & Tariff) No.2 of 2021 In the matter of
Provisional True up for FY 2019-20, Annual Performance Review for FY 2020-21 and determination of Aggregate Revenue Requirement (ARR) and Transmission Tariff for FY 2021-22 for transmission of Power by the Manipur State Power Company Limited in the State of Manipur. AND
Manipur State Power Company Limited …………. Petitioner
Present Mr. Lalchharliana Pachuau Chairperson
ORDER
1. The Manipur State Power Company Ltd (herein after referred to as MSPCL) is a deemed licensee in terms of section-14 of the Electricity Act 2003 (herein after referred to as Act), engaged in the business of, transmission and generation of electricity in the state of Manipur.
2. Regulation-17 of JERC (M&M) (MYT) Regulations 2014 (here in after referred to as Tariff Regulations), specify that the transmission licensee shall file ARR and Tariff Petition in all aspects along with requisite fee as specified in Commission’s fees, fines and charges regulations on or before 30th November of the current financial
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year. But the MSPCL has filed the petition belatedly for determination of ARR and transmission tariff for FY 2021-22 along with true up petition for FY 2019-20 and Annual performance review for FY 2020-21 on 1st February 2021, vide its letter No.26/2 ED(Tech)/MSPCL/2014/965-71, Dated: 1st February 2021.
3. ARR & Tariff Petition The MSPCL in the petition has projected the ARR for FY 2021-22 at Rs. 101.93 Crore as per Regulations 65.1(ii) of Tariff Regulations, the transmission ARR shall be recovered as fixed monthly charges from all long-term transmission users based on their share of transmission capacity in the total transmission capacity. Also, in case the target availability is below normative availability of 98% then the transmission ARR shall be recovered on pro-rata basis. Currently MSPCL has only one long term transmission customer which is distribution licensee, (MSPDCL). As such MSPCL has to recover the entire transmission ARR through fixed monthly charges from MSPDCL only.
4. Admission of Petition. In the petition for ARR and Transmission Tariff for FY 2021-22 filed by the MSPCL the commission observed that some crucial and vital information required as specified in Tariff Regulations is lacking. Therefore, the MSPCL was asked to submit the required information vide Commission’s letter No.H.20013/33/20- JERC, dated: 24.02.2021 Pending receipt of additional information, the ARR & Tariff petition was admitted on and marked as Petition (ARR and Tariff) No.2 of 2021 to avoid delay in the process of ARR. The MSPCL has submitted some data/information/clarification, etc. vide its letter No. 26/2/ED(TECH)/MSPCL/ 2014/01-02, dated: 3.04.2021.
5. Provisional True up of ARR for FY 2019-20 As per Regulation 10(2) and first proviso of Tariff Regulations the Licensee shall file an application for true up of the previous year along with audited annual accounts. The MSPCL has submitted that since the audited annual accounts are not ready they are unable to file final true up petition and hence filed petition for
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provisional true up of FY 2019-20 with actuals. As such the Commission has not carried out provisional true up and thereby no passing of the impact of true-up. Provisional true up as furnished by the MSPCL for FY2019-20 is for an ARR of Rs.66.91 Crore and Commission for truing up review purpose observed that as there is no provisional true-up contemplated in the Tariff Regulations pending submission of audited actuals and the Commission awaits the full-fledged audited accounts submission for taking up the true-up based on actuals and until such time the true-up will be delayed. Since the delay is on the part of MSPCL, they are not entitled for any additional finance cost in the true-up for 2019-20 even in due course.
6. Annual performance review for FY 2020-21 As per JERC (Multi Year Tariff) Regulations, 2014 read with JERC (Multi Year Tariff) (First Amendment) Regulations, 2019, MSPCL is required to submit the Annual Performance Review (APR) of the current year in each year of the Control Period along with the Tariff Petition of the ensuing years. Accordingly, the review for FY 2020-21 is carried out. As per APR review, the ARR for FY 2020-21 was now approved at Rs. 76.39 Crs as against the APR estimation now submitted for Rs.87.08 Crs and as per the earlier tariff order Dt.20th March 2020 amount of ARR then finalised was for Rs.77.01 Crs.
7. Public hearing process The Commission directed the MSPCL to publish the summary of the ARR and Tariff proposal in an abridged form and manner as approved in accordance with section- 64 of the Act and Regulation-17 of Tariff Regulations to ensure public participation.
The public notice was published by Managing Director/MSPCL in the following newspapers inviting the public to submit their objections and suggestions on the petition on or before 22.03.2021. The Tariff Petition was also placed in the official website of MSPCL.
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SI. No. Name of the Newspaper Language Date of Publication 1 The Sangai Express English 7st & 8th March 2021 2 Hueiyen Lanpao Manipuri 7st & 8th March 2021
No objection/suggestion is received from the public.
8. Notice for public hearing The Commission to ensure transparency in the process of tariff determination and for providing proper opportunity to all stakeholders and general public for making suggestions/objections on the tariff petition and for convenience of the consumers and general public across the state, decided to hold the public hearing at the headquarters of the state. Accordingly, the commission published a notice in the following leading newspapers giving intimation to the general public, interested parties and the consumers about the public hearing to be held at Imphal in Hotel Classic Grande, Dynasty Hall on 16th April 2020 at 1.30PM onwards.
Sl. No. Name of the news paper Language Data of Publication 1 Poknapham Manipuri 2nd & 3rd April 2021 2 Imphal Free Press English 2nd & 3rd April 2021
9. Public hearing The public hearing was held as scheduled at Hotel Classic Grande, Dynasty Hall, Imphal on 16.4.2021 at 1:30 pm. During public hearing each objector was provided a time slot for presenting before the Commission his/ her views on the Petition of MSPCL. The main issues raised by the objectors during the public hearing and corresponding response of MSPCL are briefly narrated in Chapter-3.
10. Meeting of State Advisory Committee: The proposal of MSPCL was also placed before the State Advisory Committee of Manipur in its 22nd meeting held on dt: 15th April 2021 at Dynasty Hall, Hotel Classic Grande, Imphal at 11.00 AM. The State Advisory Committee discussed the ARR and Tariff proposal for FY2021-22 of MSPCL. Minutes of the meeting are given in the Annexure-I.
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11. The Commission took into the consideration of the facts presented by MSPCL in its petition and subsequent filings, the suggestions/ objections received from stake- holders, consumer organisations, general public and state advisory committee and the response of the MSPCL to those suggestions/ objections for approval of ARR and tariff for FY 2021-22.
12. Compliance of Directives: The Commission has reviewed the directives issued earlier to MSPCL in the Tariff Orders for FY 2015-16 to FY 2020-21 and noted that some of the directives have already been complied with and hence dropped and the directives which are not fully complied with and the remaining directives are consolidated and fresh directives are added.
13. In exercise of the powers vested under section-62 read with section-64 of the Act and Regulation-16 of Tariff Regulations and other enabling provisions in this behalf, the Commission issues this order approving ARR and Transmission Tariff for FY 2021-22 for Transmission of electricity in the state of Manipur.
14. This order is in Eight chapters as detailed below: 1. Chapter 1: Introduction 2. Chapter 2: Summary of ARR & Tariff petition for FY 2021-22 3. Chapter 3: Brief outline of objections raised, response from MSPCL and Commission’s observation. 4. Chapter 4: MSPCL – An overview. 5. Chapter 5: Provisional True up for FY 2019-20 6. Chapter 6: Annual Performance Review for FY 2020-21 7. Chapter 7: Analysis and determination of ARR and transmission Tariff for FY 2021-22 8. Chapter 8: Directives.
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15. The MSPCL shall ensure implementation of the order from the effective date after issuance of a public notice, in such a font size which is clearly visible in two local daily newspapers having wide circulation in the state within a week and compliance of the same shall be submitted to the Commission.
16. This order shall be effective from 1st May 2021 and shall remain in force till the issue of next Tariff Order by the Commission.
(LALCHARLIANA PACHUAU) Chairperson
Place: Aizawl Date: 26.04.2021
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1. Introduction
1.1 JERC for Manipur and Mizoram (JERC, M&M) In exercise of the powers conferred by the Act, the Government of India constituted Electricity Regulatory Commission for the States of Manipur and Mizoram to be known as “Joint Electricity Regulatory Commission for Manipur and Mizoram” vide Government of India Gazette (Extra Ordinary) Notification No. 23/3/2002 R&R dated 10/01/2005, (hereinafter referred to as Commission) as per the authorization given by the Government of Manipur and the Government of Mizoram vide Memorandum of Agreement dated 23.07.2004. The Commission constituted is a two-member body designated to function as an autonomous authority responsible for regulation of the power sector in States of Manipur and Mizoram. The powers and functions of the Commission are as prescribed in the Act. The head office of the Commission is presently located at Aizawl, the capital town of Mizoram State. The Commission became functional w.e.f. 24th January 2008. a) In accordance with the Act, the Commission discharges the following functions: i. Determine the tariff for generation, transmission, distribution and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Provided that where open access has been permitted to a category of consumers under Section-42 of the Act, the State Commission shall determine the wheeling charges and surcharge thereon, if any, for the said category of consumers; ii. Regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State;
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iii. Facilitate intra-State transmission and wheeling of electricity; iv. Issue licenses to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State; v. Promote co-generation and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee; vi. Adjudicate upon the disputes between the licensees and generating companies; and to refer any dispute for arbitration; vii. Levy fee for the purposes of this Act; viii. Specify State Grid Code consistent with the Grid Code specified under Clause (h) of sub-section (1) of Section-79 of the Act; ix. Specify or enforce standards with respect to quality, continuity and reliability of service by licensees; x. Fix the trading margin in the intra-State trading of electricity, if considered, necessary; xi. Discharge such other functions as may be assigned to it under the Act. b) Further, the Commission also advises the State Government on all or any of the following matters namely: i. Promotion of competition, efficiency and economy in activities of the electricity industry; ii. Promotion of investment in electricity industry; iii. Reorganization and restructuring of electricity industry in the State; iv. Matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by the State Government.
c) The State Commission ensures transparency while exercising its powers and in discharging its functions. d) In discharge of its functions, the State Commission is guided by the National
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Tariff Policy (NTP) as brought out by GOI in compliance to Section-3 of the Act. The objectives of the NTP are to: • Ensure availability of electricity to consumers at reasonable and competitive rates; • Ensure financial viability of the power sector and attract investments; • Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimize perceptions of regulatory risks; Promote competition, efficiency in operations and improvement in quality of supply. 1.2 Manipur State Power Company Ltd In pursuance of the Act the erstwhile Electricity Department, Manipur was unbundled and corporatized into 2 (two) state owned functionally independent successor entities (viz) (i) Manipur State Power Company Ltd (herein after referred to as MSPCL) a deemed transmission licensee and (ii) Manipur State Power Distribution Company Ltd (herein after referred has MSPDCL) a deemed distribution Licensee w.e.f 1st of Feb 2014, by a Gazette notification of the Government of Manipur vide Manipur State Electricity Reforms Transfer Scheme 2013 (or Transfer scheme 2013) dated 31st December 2013. MSPCL is the holding company and in charge of all transmission assets of 33 KV and above. The objectives of MSPCL are: 1. Transmission of power within the state for further use by the distribution licensee and open access consumers. 2. Preparing and carrying out schemes for transmission of power upto 33 kV.
The present petition for provisional truing up of FY 2019-20, Annual Performance Review of FY 2020-21 and ARR and Transmission Tariff for FY 2021- 22 is based on the past performance and expected changes in each element of cost and revenue for the ensuing year. MSPCL has studied the previous trends and taken into cognizance of other internal and external developments to estimate the likely performance for FY 2021-22.
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The approach adopted by MSPCL for filing of this Petition is detailed below: a. Approach for Truing-up of FY 2019-20 For FY 2019-20, MSPCL has proposed provisional truing-up based on the actual expenses incurred during FY 2019-20 for each parameter of the ARR along with reason and justification for the variation as compared to that
approved in the ARR for FY 2019-20 in the Tariff Order dated 26th March
2019 & APR order Dt. 20th March 2020. It is submitted that final truing-up for past years as well as FY 2019-20 shall be submitted to the Hon’ble Commission post the completion of audit process of previous year’s accounts and also the accounts for FY 2019-20.
b. Approach for Annual Performance Review of FY 2020-21 The actual first six months expenditure along with estimate for balance six months of 2020-21 have been followed for the purpose of estimating the revised ARR for FY 2020-21. However, for estimating the R&M expense and A&G where majority of the expense is undertaken during the second half of the year, the same has been ascertained based on the actual expenditure incurred for FY 2019-20 and previous years along with reasonable assumptions for FY 2020-21.
c. Approach for Projecting ARR for FY 2021-22 For the purpose of estimating/projecting the financial & technical parameters for FY 2021-22, MSPCL has considered its actual performance in the past years and FY 2020-21 (First six months) as base and has projected the elements of ARR for FY 2021-22 with supporting rationales and as per the principles enumerated by the Joint Electricity Regulatory Commission (JERC) Terms and Conditions for (Multi Year Tariff) Regulations, 2014 notified on 9th June, 2014.
The subsequent Chapters provide the actual/projection of various cost components required for determination of Aggregate Revenue Requirement for truing-up of FY 2019-20, APR of FY 2020-21 and ARR for FY 2021-22 along with the methodology followed by MSPCL.
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2. Summary of the ARR & Tariff Petition for FY 2021-22
2.1 Aggregate Revenue Requirement (ARR) Petitioner’s submission MSPCL requests the Hon’ble Commission to approve the revised Aggregate Revenue Requirement for FY 2021-22 as shown in the table below. Table 2.1: Aggregate Revenue Requirement for FY 2021-22 (Rs. Crore) Particulars Approved vide Now Proposed MYT Order for for FY 2021-22 FY2021-22 R &M Expense 27.79 10.56 Employee Expense 77.46 87.71 A&G Expense 5.30 6.00 Depreciation 1.69 1.44 Interest on Loans 0.00 0.00 Return on Capital Employed 1.56 1.83 Interest on working capital 6.79 5.00 Income Tax 0.40 0.00 Total Cost 120.99 112.53 Less: Non-Tariff Income 8.68 10.60 Less: Expenses capitalized 5.64 0.00 Net ARR 106.67 101.93
2.2 Target availability Petitioner’s submission As per JERC MYT regulations 2014, the target availability proposed for MSPCL was 98% and it was also proposed that transmission ARR shall be recovered on pro-rata basis if target availability is below 98%. We request the Commission to continue the same for FY 2021-22.
2.3 Transmission Loss Petitioner’s submission MSPCL has submitted in the previous sections of True-up for the FY 2019-20 & APR for the FY 2020-21 that the Company is making efforts to install meters at 132 kV, 33 kV & 11 kV. It is submitted that MSPCL, as on date has already
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installed 47 Nos. and 125 Nos. of SEM meters with 15 minutes time block calibration at 132 kV and 33 kV voltage level respectively leaving a balance of 21 Nos. in 132 kV and 66 Nos. in 33 kV voltage level respectively for metering of 132 kV & 33 kV system.
It is further submitted that the SAMAST scheme encompasses installation of 51 Nos. of meters at 132 kV, 323 Nos. of meters at 33 kV and 160 Nos. of meters at 11kV level. Tender of the implementation of SAMAST in the North Eastern region of Assam and Meghalaya states has been approved by MOP and that for the remaining states is in the process of approval by TESG under PSDF funding. Also, 33 kV system integration with SLDC and Reliable communication for grid connectivity are all in tendering stage under PSDF funding. Due to the series of lockdown following Covid-19 Pandemic, the whole process has got delayed. In view of the above, the transmission losses for the MSPCL transmission system cannot be accurately measured at this point of time.
After implementation of the aforementioned Schemes, MSPCL will be in a position to assess the actual losses as real time data would be available for the major substations and identify the loss occurring area. Accordingly, MSPCL requests the Hon’ble Commission to consider the actual transmission loss after installation of meters at the feeders and approve a transmission loss trajectory accordingly. As such already approved transmission loss of 8.5% may be considered for FY 2021-22.
2.4 Transmission ARR and transmission tariff proposal for FY 2021-22 ➢ The total ARR to be recovered for FY 2021-22 is proposed to be Rs. 101.93 Cr. As per JERC (Multi Year Tariff) Regulations, 2014, the transmission ARR should be recovered as fixed monthly charges from all long-term users of the transmission system based on the share of average contracted transmission capacity in the total transmission capacity. Also, in case the target availability is below normative availability of 98%, the transmission ARR shall be recovered on pro-rata basis.
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➢ Currently, MSPCL has only one long term transmission customer which is the distribution licensee i.e. MSPDCL. As such, MSPCL proposes to recover the entire transmission ARR as fixed monthly charges from MSPDCL. The proposed tariff is provided in the table below.
Table 2.2: Transmission Tariff projected by MSPCL for FY 2021-22
Sl.No. Particulars Amount 1 Transmission ARR to be recovered (if availability is equal 101.93 or more than the normative availability) Rs. In Crore 2 Transmission Tariff for MSPDCL in FY 2021-22 849.44 Rs. Lakhs/month 3 Average Contracted Transmission Capacity for MSPDCL in 280 FY 2021-22 (in MW) 4 Transmission Tariff per MW of contracted capacity for 3.03 long term transmission users per Month (Rs. Lakhs) 5 Transmission Tariff (Rs./MW/Day) 9974 6 Energy Proposed to be Transmitted (MUs) 1590 7 Transmission Tariff (Rs./Unit) 0.64
2.5 Rebate As per JERC (Multi Year Tariff) Regulations, 2014, for payment of bills of transmission charges through letter of credit on presentation, a rebate of 2% shall be allowed. Where payments are made subsequently, through opening of letter of credit or otherwise, but within a period of one month of presentation of bills by the transmission licensee, a rebate of 1% shall be allowed.
2.6 Late Payment Surcharges As per JERC (Multi Year Tariff) Regulations, 2014, in case the payment of bills of transmission charges by beneficiary (ies) is delayed beyond a period of one month from the date of billing, late payment surcharge at the rate of 1.25% per month shall be levied.
2.7 Incentive: As per regulation 66 of JERC for M&M (MYT) Regulations 2014 the transmission licensee shall be entitled to incentive for increase in annual availability beyond the target availability prescribed under Regulation 61, in accordance with the
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following formula and shall be shared by the long term and short term and medium-term customers in the ratio of their average allotted transmission capacity
Incentive = ATC × (achieved – target availability) Target availability Where ATC = Annual Transmission charges determined by the Commission for the transmission system of the transmission Licensee for the Concerned year.
2.8 Prayer 1. MSPCL requests the Hon’ble Commission to:
• Admit the Aggregate Revenue Requirement and the Transmission Tariff Proposal for FY 2021-22 as submitted herewith. • Admit the Annual Performance Review of FY 2020-21 as submitted herewith. • Admit Provisional true up for FY 2019-20 submitted here with. • Condone any inadvertent omissions/errors/shortcomings and permit the Petitioner to add/ change/ modify/ alter this filing and make further submissions as may be required at a future date. • Permit submission of any additional information required by the Commission during the processing of this Petition. • And pass such other and further orders as are deemed fit and proper in the facts and circumstances of the case.
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3. Brief outline of objections raised, response from MSPCL and Commission’s observation
3.1 Introduction: On admitting the ARR and Tariff Petition for FY 2021-22, the Commission directed the MSPCL to make available the copies of petition to the general public, post the petition on their website and also publish the same in newspapers in abridged form and invite comments/objections/suggestions from them.
3.2 Public Hearing: In order to ensure transparency in the process of determination of tariff as envisaged in the Act, Public Hearing was held on 16.04.2021 at Hotel Classic Grande, Dynasty Hall, Imphal from 1.30PM to 3.00P.M. List of members from the public and Consumers Association who attended the meeting together together with the list of Officers of MSPCL who attended the Public Hearing are given in Annexure-II.
3.3 Public Hearing Process No Objections are received either from the public or from Consumer’s Association.
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4. MSPCL – An Overview
4.1 Background The commissioning of the two micro hydel sets having capacities of 100 KW and 56 KW at Leimakhong in 1930 by the then Manipur State HE Board marked the beginning of the use of electricity in Manipur. The Royal palace and main areas of Imphal Town enjoyed Electricity generated from this captive hydel station. During the World War-II, two more DG sets of 62 KW and 46 KW capacities were installed at the old Imphal Power House by the Armed Forces for electrification of Imphal town and its suburbs. The above installed capacity remained the same till the end of the first Five Year plan (1951-56) of the post- independence period. The second Five Year Plan (1956-61) however saw a significant change in the demand of power in the state. The demand has been growing rapidly envisaging more social acceptance and the gradual promotion of awareness of the people towards the use of electricity for different purposes. This had necessitated further addition in the generation capacity and it was accomplished with the installation of a few more DG sets of various capacities in and around Imphal.
To evacuate the power generated from the captive micro hydel power station (100 + 56) KW at Leimakhong to specific load centres of Palace Compound and main bazar area of Imphal, the 20 Km. long, 11 KV line between Imphal & Leimakhong was constructed for the first time in Manipur in 1930. The state was then having 26 Km. of 11 KV lines and 45 Km. of domestic lines to serve very few consumers in 7 villages/Leikais. Both the line and generating stations were owned by the then Manipur State HE Board, constituted under the ex-officio Chairmanship of the Political Agent. Subsequently Electricity was kept under the administrative control of the Public Works Department, Government of Manipur. It was separated from state PWD and started functioning as an independent Department since February 1970.
The peak load demand of Manipur in 1971 was 3.6 MW only. The demand
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was met from the State’s own generating stations and power purchased from the neighbouring states/Electricity Board at the low voltage. The per capita consumption of energy was 4.84 KWh. The demand was kept suppressed due to lack of generation till the year 1980. The scenario was abruptly changed after the purchase of bulk power from Assam with the commissioning of 132 KV inter-state transmission line from Imphal to Dimapur and 6.3 MVA, 132/33 KV sub-station at Yurembam in December 1981. The situation was further alleviated with the commissioning of Loktak Hydro Electric Project having a capacity of
3x35 MW on 4th of August 1984.
During the years from 1984 to 1996, a number of Central Sector Power Projects, mostly hydel projects in the North Eastern Region were commissioned. Every project has a share of about 7-8% for Manipur. Because of the availability from such projects, the peak demand of the state has increased gradually over the period of time.
After the enactment of Electricity Act 2003, various reforms have been initiated in the power sector including restructuring of integrated State Electricity Boards into separate companies. The Electricity Department of Manipur had also initiated the process of reforms and restructuring and had engaged M/s SBI Caps to advise the Department on process of corporatization and restructuring of the Electricity Department. In FY 2013-14, with effect from 1st Feb' 2014, Electricity Department of Manipur (EDM) has been restructured and separated into two different entities - 1) Manipur State Power Distribution Corporation Limited (MSPDCL) and 2) Manipur State Power Corporation Limited (MSPCL). Accordingly, the tariff filing for Wheeling and Retail Supply Business will be done by MSPDCL and that of Transmission will be done by MSPCL and submitted to JERC.
MSPCL would like to submit that the present petition is for provisional truing up of FY2019-20 since audited accounts for FY 2019-20 are not ready, Annual Performance Review (APR) of FY 2020-21, ARR and Tariff Petition for FY 2021-22.
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The details of Transmission network snapshot:
Voltage Level 400 kV 132 kV 33 kV FY 2019-20 - 17 92 No. of Sub-Station FY 2020-21 01 19 104 FY 2021-22 01 19 121 FY 2019-20 - 698.30 817.15 Transformation FY 2020-21 315 778.30 942.35 Capacity (MVA) FY 2021-22 315 778.30 1097.35 FY 2019-20 - 638.46 1602.78 Line Length (km) FY 2020-21 45 673.01 1723.78 FY 2021-22 45 673.01 2099.78
Transmission Loss All incoming 132 kV feeders and outgoing 11 kV feeders are not fully metered. Hence the transmission loss cannot be measured at present. As such the MSPCL request the Hon’ble Commission to consider actual transmission loss after installation of meters at the feeders and approve a transmission trajectory accordingly. As such already approved transmission loss of 8.5% may be considered for FY 2021-22.
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5. Provisional True up of ARR for FY 2019-20
5.0 Introduction As per JERC (Multi Year Tariff) Regulations, 2014, MSPCL is required to submit the truing up of the previous year in each year of the Control Period along with the Tariff Petition of the ensuing year. Since the JERC (Multi Year Tariff) Regulations, 2014 is effective from 1st April 2014; the truing up of FY 2019-20 shall be carried out under the same Regulations.
The truing up of FY 2019-20 has been carried out by comparing the approved ARR in the MYT order Dt. 26th March 2019 & annual performance review conducted for FY2020-21 in the order dated 20th March 2020 with the actual data of FY 2019-20. The accounts of FY 2019-20 are currently in compilation stage and the same shall be submitted to the Commission as and when the same are finalized and audited. However, the actual data of FY 2019-20 for various expenses are available with MSPCL and the same are being submitted to the Hon’ble Commission for provisional truing-up of FY 2019-20. As such, MSPCL is requesting the Hon’ble commission to carry out the provisional truing up of FY 2019-20 as per JERC MYT Regulations 2014. However, MSPCL would request the Commission to pass on the adjustment on account of truing up for FY 2019- 20 only after availability of final audited accounts.
5.1 Background The Tariff Order for FY 2019-20 for MSPCL was issued by the Hon’ble Commission on 26th March, 2019 and subsequently Annual Performance Review (APR) for FY 2019-20 was undertaken by the Hon’ble Commission in its order dated 20th March 2020. MSPCL is filing this petition for determination of revised ARR for FY 2021-22, it is important that the actual numbers of FY 2019-20 are considered for projecting the various components of APR for FY 2020-21 and ARR for FY 2021-22. Therefore, MSPCL is submitting for provisional truing-up of FY 2019-20, which is a comparison of the actual performance and expenses of MSPCL vis-à-vis the approved ARR for FY 2019-20 in order dated 26th March
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2019. This exercise examines technical and financial performance of MSPCL in FY 2019-20 with the figures approved for FY 2019-20 in the Tariff order & APR order. These aspects are discussed in the section below:
5.2 Transmission Loss Petitioner’s submission MSPCL would like to submit that while it is undertaking all efforts for metering of the feeders, currently all input and output points of transmission system have not been metered. MSPCL is undertaking the metering of the feeders, under the SAMAST Scheme. SAMAST Scheme encompasses installation of 51 No. of Meters at 132 KV, 323 No. of Meters at 33 KV and 160 No. of Meters at 11 KV level and with the implementation of 33 KV system integration with SLDC and reliable communication for grid connectivity which are all in tendering stage under PSDF funding, MSPCL will be in a position to assess the actual losses as real time data would be available for all major substations and identify the loss occurring area. At present, as the data available is haphazard and errors are noticed with the existing pen and paper method, we are unable to arrive at the actual values. In view of the above submission, MSPCL requests the Commission to consider the transmission loss at 8.894% for FY 2019-20 for provisional truing-up.
Commission’s Analysis Taking due consideration of the explanations given by the Licensee on the accuracy of the Transmission losses sustained by it in the FY 2019-20 and due to their inability to record the energy handled, the commission prefers to adopt the Transmission losses at 8.894% based on the additional information received from Licensee since they are not in a position to assess it accurately due to lack of complete and accurate energy meter data in its jurisdiction. So, adopted 8.894% transmission loss provisionally for truing up purpose which awaits the submission of full-fledged audited accounts of FY 2019-20 to the Commission to link up the loss depiction in its Audited Accounts.
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5.3 Operation and Maintenance Expenses Petitioner’s submission MSPCL submits that the Operation and Maintenance (O&M) Expenses comprises of the following elements: (a) Employee Expenses (b) Repair and Maintenance (R&M) Expenses (c) Administrative and General (A&G) Expenses
a. Employee Expenses Petitioner’s submission The breakup of actual employee cost of MSPCL in FY 2019-20 is provided below: Table 5.1: Actual Employee Expenses for FY 2019-20 (Rs. Cr) Employee Approved in T.O Approved in APR Actual for FY Expenses Dt. 26.03.2019 Dt. 20.03.2020 2019-20 Pay Band 15.11 Grade Pay 3.75 D.A. 26.60 H.R.A. 1.89 69.12 45.32 SCA 2.20 TA 1.01 Spl. Pay/ Cy All 0.00 NPS Contribution 2.35 Grand Total 69.12 45.32 52.92
The actual employee expense incurred during FY 2019-20 are Rs. 52.92 Cr. as against the approved employee cost of Rs. 69.12 Cr. in ARR dated 26th March 2020, and Rs. 45.32 Cr. approved in the APR vide Order dated 20th March 2020. The actual employee cost for FY 2019-20 is lower than the approved employee cost as per the Tariff Order for FY 2019-20 dt 26th March 2019.
Accordingly, the Hon’ble Commission may consider the Employee Expenses amounting to Rs. 52.92 Crs for truing up of FY 2019-20.
Commission’s Analysis The Commission in its earlier order dt.26.03.2019 provided for Rs.69.12Crs towards employee cost and later on it was revised to Rs.45.32crs in the APR review. MSPCL is now indicating the actual cost at Rs.52.92 Crs for FY 2019-
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20 which is a higher value than review figure of Rs.45.32crs. As MSPCL had not submitted Statutory Auditor’s approved annual accounts for scrutiny and hence the same will be approved upon verification with audited actual.
b. Repair & Maintenance Expenses Petitioner’s Submission:
These expenses include expense on repair and maintenance of Plant and Machinery, Transformers, Lines, cable network, vehicles, office equipment, etc. It is important for MSPCL to incur the R&M expenses in order to maintain and strengthen the transmission system for maintaining the quality of power supply in the region and achieve system availability of 98% as prescribed by the Commission.
MSPCL submits that there has been an addition of Rs. 25.68 Cr. in gross fixed assets during FY 2019-20. The actual R&M expenses incurred during FY 2019-20 is Rs. 9.50 Cr. and lower than the approved R&M expense of Rs. 14.44 Cr. in the Annual Performance Review of FY 2019-20 due to lower capitalisation of assets than approved in the APR for FY 2019-20. As such, the Commission is requested to approve the R&M expenses based on actuals. Table 5.2: R&M Expenses for FY 2019-20 (Rs. Cr) Approved vide Tariff Approved vide Actual expense as Particular Order dated 26th Annual Performance incurred by MSPCL March, 2019 Review 20 Mar, 2020 R&M Expenses 14.44 14.44 9.50
Accordingly, the Hon’ble Commission may consider the R&M Expenses amounting to Rs. 9.50 Cr. for FY 2019-20.
Commission’s Analysis The Commission awaits submission of audited accounts for provisionally considering the R&M expenses at Rs.9.50 Crs for truing-up purpose of this cost in FY 2019-20 as the verification of this value with audited figures is a must for any truing up.
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c. Administrative and General Expenses Petitioner’s Submission: Administrative and General (A&G) expenses comprise of various sub-heads including the following: ➢ Travel and conveyance expenses ➢ Hydel investigation expense ➢ Electricity and Telephone charges ➢ Consultancy and regulatory fee ➢ Office expenses on IT equipment, fittings etc. ➢ Publication expenses ➢ Other administration expenses
Honorable Commission in its order dated 20.03.2020 had approved the Administration & General expenses at Rs. 4.61 Cr. for FY 2019-20, under APR as projected by MSPCL. However, the actual expense incurred under A&G expenditure by MSPCL is Rs. 8.09 Cr. for FY 2019-20. The rise in expenses is due to addition of sub-stations and assets. The A&G expense for FY 2019-20 are as below: Table 5.3: Actual A&G Expenses for FY 2019-20 (Rs. Cr) Approved vide Approved vide Actual expense as Particulars Tariff Order dated Annual Performance incurred by MSPCL 26th Mar, 2019 Review 20 Mar, 2020 in FY 2019-20 A&G Expenses 4.61 4.61 8.09
Accordingly, the Hon’ble Commission may provisionally approve the A&G Expenses amounting to Rs. 8.09 Cr. under the provisional truing up for FY 2019- 20.
Commission’s Analysis In this regard, the Commission in the additional information had called for details of Rs.8.09 Crs spent towards Assets running expenses. In reply, the licensee had provided the break up for 8.09 Crs also includes amounts spent on supply of materials, Electrical charges, Civil works and Local purchase are significant totalling to Rs.6.61 Crs. The amount spent on Civil works,
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Local Purchases and Supply of materials are not of Administrative Expenses in nature. Sl. No. Particulars Amount (Rs) 1 Hiring of Manpower 352975 2 Hiring of Vehicle 678040 3 Office Expenses 2919358 4 Professional Fees 592888 5 Local Purchase 1310000 6 Telephone bill 132040 7 Traveling Expenses 1727705 8 Training 94400 9 Advertisement 411948 10 Petrol/Diesel 3225273 11 Lease Line 685226 12 Jungle Cutting 4026625 13 Civil Work 8448438 14 Electric Consumption Charges 36050000 15 Supply of Material 20295084 TOTAL 80950000
The reply looks very much irrelevant as any expenditure on Electrical consumption charges of Rs.3.61 Crs, Civil works Rs.0.8484 Crs, Supply of Material costing Rs.2.03Crs, and Local Purchases of Rs.0.131 Crs needs to be scrutinised by the Statutory Auditor for their authentic spending in 2019-20. Hence, the Commission feels it appropriate to disallow this cost for Truing up purpose without delving deeper in this matter considering the inapt reply provided. Therefore, the Commission provisionally considers A&G expenses at Rs.4.61crs only for truing-up of this cost in FY 2019-20 subject to its verification with audited figures which are due for submission. More so this approved figure is now comparable with that was earlier allowed in T.O Dt.20.03.2020.
d. Abstract of O&M Expenses Table 5.4: Total O&M Expenses for FY 2019-20 claimed in filing by MSPCL (Rs. Cr) Approved vide Actual for FY Particulars APR Dated. Sl.No 2019-20 20 Mar, 2020 1 Employee Expenses 45.32 52.92 2 R&M Expenses 14.44 9.50 3 A&G Expenses 4.61 8.09 4 Total 64.37 70.51
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Accordingly, the Hon’ble Commission may consider the O&M Expenses amounting to Rs. 70.51 Cr. as per the actuals for provisional truing-up of FY 2019-20. Commission’s Analysis The abstract of O & M charge provisionally considered by Commission for FY 2019-20 Amount Sl. No Particulars (Rs.Crs) 1 Employee Expenses 45.32 2 R&M Expenses 9.50 3 A&G Expenses 4.61 4 Grand Total 59.43 The above amount is considered provisionally subject to their verification with Audited account submission to Commission for scrutiny. 5.4 Capital Investment Plan Petitioner’s submission The details of actual capital expenditure towards various new and augmentation schemes in FY 2019-20 are given below. Table-5.5: Capital Expenditure for FY 2019-20 (Rs. Cr) Sl. Capex Name of Project No. Rs.Crs I Generation 1 NIL Sub-Total: Generation Hydro (I) - II Transmission & Distribution A.1 Ongoing Schemes A.1.1 400 kV System 1 Installation of 400 kV Sub-Station at Thoubal(NLCPR) 0.79 Construction of 400 kV T/L from Yurembam to Thoubal 2 via Nambol 4.91 Installation of 2 nos. 400 kV line bays at Imphal (PG) 3 6.14 sub-station Total : A.1.1 11.83 A.1.2 132 kV System Installation of 132/33 kV S/S at Chandel with 1 associated 132 KV line(NLCPR) 0.04 2 Installation of 1x20 MVA trasformer at Yaingangpokpi 1.50 Renovation &Modernisation of two nos. of 132/33 KV 3 S/S at Yaingangpokpi&Ningthoukhong(NLCPR) 0.09
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Installation of 132/33 kV S/S at Thanlon with 4 5.29 associated line(NLCPR)
Augmentation of Rengpang 132/33 kV sub- 5 station by installing(3x4.16+1x4.16)MVA 132/33 0.60 kV single phase transformers 6 IDC on REC loan 5.47 7 Principal payment on REC loan 50.00 Installation of 132/33 kV sub-station at Moreh with
8 erection of associated 132 kV line(NLCPR) 7.28 Augmentation of 132/33 KV S/S at Jiribam 9 (Installation of additional transformers) 0.09 Stringing of 132 kV line (2nd circuit) from Kakching to 10 Churachandpur(NEC) 1.00
Installation of 132 kV sub-station along with 11 0.35 associated 132 kV line at Elangkhangpokpi Construction of 132 kV link T/L from 400/132 kV sub-
station, Thoubal to 132 kV sub-stations at Kongba, 12 0.20 Yaingangpokpi and Hundung on existing Kongba to Kakching 132 kV T/L. Total : A.1.2 71.92 A.1.3 33 kV System 1 Installation of 33/11 kV sub-station at Henglep 0.89 I(NnstaLCllatPRi)o n of 33/11 kV sub-station at Chakpikarong 2 0.56 (NLCPR) 3 Installation of 33/11 kV S/S at Sekmaijin (NLCPR) 0.17 4 Installation of 33/11 kV S/S at Chandel (NEC ) 1.55
Installation of 33/11 kV sub-station with associated 33 5 0.14 KV line at Sugnu (NLCPR)
Installation of 33/11 KV sub-station with associated 33 6 0.69 KV line at Khongjom (NLCPR)
Installation of 33/11 KV sub-station with associated 33 7 0.63 KV line at Sekmai (NLCPR)
Installation of 33/11 KV (2x1 MVA) S/S at 8 0.97 NungbiKhullen with associated 33 KV line (NLCPR) 9 Re-stringing & strengthening of 33 kV lines 3.41
Installation of 33/11 KV (2x1 MVA) S/S at Gumnom 10 0.87 with associated 33 kV line (NLCPR) 11 Renovation of 33/11 KV S/S at Khoupum 0.33
Installation of 33/11 kV sub-station at 12 0.59 KasomKhullen with associated 33 kV line
Installation of 33/11 kV sub-station at 13 0.19 Mayangkhang with associated 33 kV line(NEC)
Installation of 33/11 kV sub-station at Mao with 14 0.70 associated 33 kV line(NEC)
Construction of 33 kV D/C line on STP from 132/33 kV 15 0.74
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SS at Thoubal to 33/11 kV SS at Thoubal (old) Installation of 1x3.15 MVA 33 kV sub-station at along 16 with associated 33 kV line and related works at 4.69 Yairipok under IPDS Installation of 1x3.15 MVA 33 kV sub-station at along 17 with associated 33 kV line and related works at Wangoi 4.05 under IPDS
Installation of 1x3.15 MVA 33 kV sub-station at 18 along with associated 33 kV line and related works 5.21 at Wangjing under IPDS Installation of 1x3.15 MVA 33 kV sub-station at along 19 with associated 33 kV line and related works at Heirok 4.99 under IPDS
Augmentation of 33/11 kV sub-station at Kangpokpi 20 0.22 under IPDS Augmentation of 33/11 kV sub-station at Karong under 21 0.60 IPDS Total : A.1.3 32.18 A.2 New Schemes A.2.1 33 kV System NIL Total : A.2.1 - Sub-Total (II): 115.94 III Misc. Scheme Renovation and up-gradation of grid sub-station of 25.78 1 MSPCL under PSDF funding 2 AMC for SCADA 0.19 Expansion/Upgradation of SCADA/EMS System of 2.58 3 SLDCs of NER 4 Renovation of 33/11 KV S/S - Civil constructions 2.28
Installation of Reactive Power Solution on 33/11 5 2.18 kV sub- stations in Manipur under PSDF Total : III 33.01 Total (I+II+III): 148.95
The Commission had approved a total capital investment of Rs. 265.57 Cr. for FY 2019-20 in the ARR Order for FY2019-20, keeping in view the expansion/ augmentations and strengthening of the system for handling increased load and also ensuring better quality of supply and network reliability to the consumers. Subsequently, in the APR submission for FY 2019-20, the capital expenditure for FY 2019-20 was revised to Rs.127.36 Cr. based on the actual progress of schemes during the first six months and estimated for the balance six months. It is submitted that MSPCL has incurred actual capital expenditure of Rs. 148.95 Cr.
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during FY 2019-20.
In case of capitalization of assets, the Commission had approved Rs. 251.56 Cr. FY2019-20 in ARR which was later revised to Rs. 89.72 Cr. in the APR submission for FY2019-20. MSPCL submits that the actual capitalization during the period has been Rs.25.68 Cr., details of which are provided in the table below: Table 5.6: Capitalised Assets in FY 2019-20 (Rs. Cr) Sl. No. Name of Project Cost of Project 1 Installation of 2x5 MVA, 33/11 kV SS at Wangoi. 9.67 2 Installation of 2x5 MVA, 33/11 kV SS at Yairipok. 9.52 Augmentation of 33/11 kV S/S from 1x3.15 MVA to 3 1.43 2x3.15 MVA at Kangpokpi Upgradation of 33/1 kV S/S at Khoupum in Tamenglong 4 5.06 District by installing 2x2.5 MVA trf. Total Capitalisation 25.68
A summary of the actual capital expenditure and capitalization as against that approved by the Commission is summarized in table below:
Table 5.7: Capital Expenditure and Capitalisation for FY 2019-20 (in Rs. Cr.) Approved vide Approved vide Actuals for Sl. No. Particulars Tariff Order dated Annual Performance FY 2019-20 26th Mar, 2019 Review 20 Mar, 2020 1 Capital Expenditure 265.57 127.36 148.95 2 Capitalisation 251.56 89.72 25.68
Based on the actual capital expenditure and capitalization amount for FY 2019-20, the details of CWIP are as below:
Table 5.8: Capital Works in Progress in FY 2019-20 (Rs. Cr) Approved in Approved in APR Actual for S.No. Particulars T.O dt 26.03.19 Dt.20.03.20 FY 2019- 20 1 CWIP Opening Balance 199.93 420.34 420.34 2 Capital Investment 265.57 127.36 148.95 3 Less: Investment 251.56 89.72 25.68 Capitalized 4 CWIP Closing Balance 213.94 457.98 543.60
Commission’s Analysis The Commission is awaiting the statutory audited annual account for assessing the actual amount spent on investments and also the assets transferred to
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Gross Fixed Assets. It is too early to make any constructive comment on the amounts spent by the Licensee without verifiable source of documentary proof and the same will be dealt on submission of audited accounts.
In the break-up provided for 2019-20 Capital Investment of Rs.148.95Crs, it is strange to notice the two elements shown indicated below, which are not eligible to be treated as capital investment as a 132KV line capital asset project in the list in table-5.5 above: Table 5.9: Capital Works in Progress in FY 2019-20 (Rs. Cr) S.No Name of the Project CAPEX a) IDC on REC loan (item-6 under 132kV system) 5.47crs b) Principal payment on REC loan (item-7 under 132kV 50.00crs System) Total investment claimed 55.47crs
The above stated amount will have to be subtracted from the CAPEX during the year 2019-20 while arriving at the CWIP. Any loan drawn shall be used for asset creation and MSPCL should have indicated the list of assets created out of such funds including IDC upon it. Showing Loan amount and IDC can’t be treated as any asset under no circumstance. This kind of presentation is unethical and hence disallowed fully. Eventually, Commission can only consider Rs.93.48 Crs (i.e.,148.95-55.47) instead of Rs.148.95 Crs as projected by MSPCL as CAPEX investment. Final amount to be allowed would be decided after due verification with the figures reflected in Audited Annual Accounts for 2019-20. Table 5.10: Commission considers CWIP for FY 2019-20 (Rs. Cr) Sl. Approved in As per APR Actual for Commission Particulars No. T.O dt 26.3.19 Dt.20.03.20 FY 2019- 20 considers 1 CWIP Opening Balance 199.93 420.34 420.34 420.34 2 Capital Investment 265.57 127.36 148.95 93.48 3 Less: Capitalized 251.56 89.72 25.68 25.68 4 CWIP Closing Balance 213.94 457.98 543.60 488.14
5.5 Depreciation Petitioner’s submission: As per JERC MYT Regulations 2014, the depreciation is charged on the basis of straight-line method, on the average GFA during the financial year. The
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depreciation is based on the original cost of the Gross Fixed Assets. Further, as per the guidelines of Institute of Chartered Accountant of India (ICAI), which is Accounting Standard 12, depreciation should be claimed on net expenditure after excluding assets funded through government grants. In MSPCL, majority of the assets are funded through government grants and therefore, depreciation has not been claimed on the assets funded through government grants in the ARR in line with the practise followed by the Commission in the previous Tariff Orders. The details of actual depreciation along with approved figures are for the FY 2019-20 are provided in the Tables below
Table 5.11: Depreciation approved by Commission earlier for FY 2019-20 (Rs. Cr) Approved in Approved Commission Sl. Actuals Particulars MYT T.O dt In APR for approved No. (MSPCL) 26.03.2019 FY 2019-20 (provl) 1 Opening GFA 1279.90 1279.92 1279.92 1279.92 2 Addition during the year 251.56 89.72 25.68 25.68 3 10% O&M Expenses 0.00 8.97 - (#) Capitalization 4 Total GFA at the end 1531.46 1378.61 1305.60 1305.60 5 Average GFA 1405.80 1329.26 1292.76 1292.76 6 Avg rate of Depreciation 5.10% 5.10% 5.10% 5.10% 7 Depreciation 71.70 67.79 65.97 65.99 8 Depreciation allowed 1.08 1.01 0.99 0.99
(#) – No O&M expenses capitalised pending Audited Accounts submission.
Table 5.12: Actual Depreciation for FY 2019-20 (Rs. Cr) FY 2019-20 Rate Depre- Particular Opening Addition Closing Average adopted ciation Land & Land 23.74 0.00 23.74 23.74 0.00% 0.00 Development Plant & 1188.28 25.68 1213.96 1201.12 5.28% 63.42 Machinery Building 63.71 0.00 63.71 63.71 3.34% 2.13 Furniture 1.11 0.00 1.11 1.11 6.33% 0.07 &Fittings Computer 1.27 0.00 1.27 1.27 15.00% 0.19 Office 0.21 0.00 0.21 0.21 6.33% 0.01 Equipment
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FY 2019-20 Rate Depre- Particular Opening Addition Closing Average adopted ciation Vehicles 1.60 0.00 1.60 1.60 9.50% 0.15 Total 1279.92 25.68 1305.60 1292.76 65.97 Percentage of assets non-funded through Grants 1.50% Depreciation claimed for true-up 0.99
The total depreciation in FY 2019-20 was Rs.65.97 Crores. However, excluding the depreciation on account of assets funded from grant, only 1.5% of the total depreciation has been claimed for the purpose of truing-up for FY 2019-20 by MSPCL. Hence MSPCL requests the Hon’ble Commission to consider actual depreciation for provisional truing up of FY 2019-20 as Rs. 0.99 Crores.
Commission’s Analysis The Commission is awaiting the submission of statutory audited annual account for assessing the actual amount of the assets transferred to Gross Fixed Assets and the applicable depreciation there upon. It is too pre- matured to make any constructive comment on the amounts spent by the Licensee without checking verifiable source of documentary proof and therefore the same will be dealt later to submission of audited accounts.
5.6 Interest and Finance Charges The entire capital expenditure of MSPCL since its inception has been funded by the State Government through grants from Central Government Ministries and Agencies like Ministry of Power (MoP) through schemes of NEC, NLCPR, DONER or through State Plan Scheme. Therefore, the utility does not have any liabilities on account of long-term loans. Hence, there is no interest and finance charge approved by the Hon’ble Commission for FY 2019-20. Therefore, actual interest and finance charges claimed for truing-up of FY 2019-20 is NIL.
Commission’s Analysis Each cost element approval depends only upon the actual amount spent by the Licensee for the benefit of Organisation but not based on the earlier approval of the Commission. But it is observed that Licensee prefers to adopt what was approved earlier. As the utility has specifically stated that it has not spent any
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amount towards Interest & Financial charges, the amount is treated as nil for true-up purpose even without awaiting the audited accounts submission.
5.7 Interest on Working Capital Petitioner’s Submission As per the JERC MYT Regulations 2014, MSPCL is entitled for interest on working capital as per the norms provided. The norms state that the working capital shall cover the following: a. Operation and maintenance expenses for one month; plus b. Maintenance spares at one (1) per cent of the historical cost escalated at 6% from the date of commercial operation; plus c. Receivables equivalent to one (1) month of transmission charges calculated on target availability level; minus d. Amount, if any, held as security deposits except the security deposits held in the form of Bank Guarantee from Transmission System Users. e. Interest shall be allowed at a rate equal to the State Bank Advance Rate (SBAR) as on 1st April of the financial year in which the Petition is filed.
The interest rate considered by MSPCL is based on the Advance Rate of SBI applicable as on 1st April 2020, in line with the provisions of the Regulations. Based on the Regulations, the normative working capital requirement and interest thereon is computed as per the table below
Table 5.13: Interest on Working Capital for FY 2019-20 (Rs. Cr) Approved vide Approved Actuals S. No. Particulars Tariff Order dt In APR Proposed by 26.03.19 Dt.20.03.20 MSPCL 1 O&M Expenses for one month 7.35 5.37 5.88 2 Maintenance of Spares (1% of 13.57 13.57 14.01 GFA) 3 Receivables for 1 month 7.10 5.05 5.58 4 Total working capital needed 28.02 23.99 25.47 5 Rate of interest 13.45% 13.80% 12.90% 6 Interest on Working Capital 3.77 3.31 3.29
Hence, MSPCL requests the Hon’ble Commission to consider Interest on Working Capital for provisional truing up of FY 2019-20 as Rs. 3.29 Cr.
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Commission’s Analysis The Commission provisionally considers to allow this element of cost as a norm towards interest on working capital for FY 2019-20 as it was considered earlier in the relevant Tariff Order of that year. But, it is to advise the licensee not to prefer claiming these charges in ARR when it was not actually spent by availing short-term loans during that financial year. However, this cost element will not be taken into consideration from FY 2021-22 for the reason of not actually availing any such loans and in order to relieve the consumer from additional burden due to these charges unnecessarily. The cost element to be allowed and its amount for FY 2019-20 will be considered only after submission of audited annual accounts after due consideration of the amount of bank interest earned to the tune of 3.95 crs under NTI since it has a bearing on their short-term loan drawal needs.
5.8 Return on Equity (with Tax) Regulation 22 of MYT Regulation, 2014 provides that equity for the purpose of ROI shall be 30% of capital cost or actual equity, whichever is lower. Further, Regulation 26 of MYT Regulation provides that RoE shall be allowed at the rate of 15.5% of Equity as determined under regulation- 22. Accordingly, Equity for the purpose of calculating RoE has been considered as actual equity base for the FY 2019-20. Further Regulation 30 provides that Income Tax payable shall be allowed based on actual income tax as per Audited Accounts. However, since, account of MSPCL are yet to be audited, Income Tax has been considered at MAT rate of 17.16%.
The actual equity base as per accounts in FY 2019-20 is Rs. 10.05 Cr. The revised Return on Equity along with the approved figures for FY 2019-20 are detailed in table below:
Table 5.14: Return on Equity for FY 2019-20 (Rs. Cr) Approved Approved APR Actuals for Details in T.O 20.03.20 FY2019-20 Return on Equity Grand Total (including Tax) 1.96 1.56 1.83
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Accordingly, the Hon’ble Commission is requested to consider the RoE (with tax @17.16%) amounting to Rs 1.83 Crore for provisional true-up as proposed by MSPCL for FY 2019-20.
Commission Analysis The Commission provisionally takes into consideration of the ROE amount to be Rs.1.56 Crs for FY 2019-20 for true-up. However, the allowing of Income Tax portion of ROE Rs.0.272 crs will only depends upon tax liability incidence to be verified on submission of Audited Accounts though it is now included in the overall ARR true-up amount.
5.9 Non-Tariff Income Non-tariff and Other Income The non-tariff income for MSPCL is mainly on account of transmission charges realized for short term power purchase or sale by the distribution licensee. These charges are paid to MSPCL for use of intra state transmission system for short term power purchase or sale. Apart from this, non-tariff income is also earned as interest from bank accounts used for managing the account of short- term open access charges and agency charges earned for supervision of deposit works. MSPCL has earned Rs. 9.70 Cr. during FY 2019-20 as detailed in table below: Table 5.15: Non-Tariff Income for FY 2019-20 (Rs. Cr) Sl. Approved in Approved in Actuals for No. Particulars T.O dt.26 03.19 APR 20.03.20 FY2019-20 1 SLDC Charges 3.00 3.00 3.00 2 Agency Charges 3.46 2.65 2.65 3 Interest from bank 3.09 3.95 3.95 4 Other income 0.15 0.10 0.10 Total 9.70 9.70 9.70
The Hon’ble Commission is requested to consider the actual Non-tariff income of Rs. 9.70 Cr. for FY 2019-20.
Commission Analysis: The Commission pending submission of the audited account for FY 2019-20, provisionally considers the Non-Tariff Income amount at Rs.9.70 Crs which is subject to verification with finally approved audited accounts by statutory auditor.
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5.10 Aggregate Revenue Requirement The ARR of MSPCL for FY 2019-20 as approved by the Commission vide Tariff Order dated 26th March, 2019 and Annual Performance Review dated 20th March, 2020 and the actual submitted by MSPCL are detailed in table below:
Table 5.16: Aggregate Revenue Requirement furnished by MSPCL for FY 2019-20 (Rs. Cr) Approved Approved Sl. Actuals Difference Particulars in T.O in APR No FY 2019-20 (Actual – APR) dt.12 03.18 26.03.19. 1 Employee costs 69.12 45.32 52.92 7.60 2 Repair & Maintenance 14.44 14.44 9.50 (4.94) expense 3 A&G Expenses 4.61 4.61 8.09 3.48 4 Depreciation 1.08 1.01 0.99 (0.02) 5 Interest & Finance - - - - charges 6 Return on Capital 1.96 1.56 1.83 0.27 Employed 7 Interest on Working 3.77 3.31 3.29 (0.03) Capital 8 Income Tax 0.40 ------9 Total Cost 95.38 70.30 76.61 6.36 10 Less: Non- Tariff income 9.70 9.70 9.70 - Less: Expenses 11 ------Capitalized 12 Aggregate Revenue 85.68 60.60 66.91 6.36 Requirement
The variation in approved and actual ARR for FY 2019-20 as shown in table above is not proposed to be carried forward in the tariff of ensuing year as the figures for FY 2019-20 are provisional and MSPCL requests the Commission to undertake any adjustments on account of truing-up only after the availability of audited accounts for FY 2019-20.
Commission’s Analysis
In view of the foregone paras on each expenditure element of the ARR
claimed by the MSPCL for the FY 2019-20, for some cost elements the
Commission could provide indicative ARR amounts provisionally and while in
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certain other cost elements audited accounts were required to express its decision of their approval.
Under these circumstances, it is to suggest MSPCL to submit the true-up petition once again separately for FY 2019-20 so that Commission would be in a position to examine and scrutinise the costs actually spent upon the
Statutory Auditors approved audited Accounts for 2019-20 is made available in this matter since there is no regulatory provision to carry-out provisionally once & final true-up later for the same period. Any true-up once made will not be revisited. Hence the concept of provisional & final true-up by licensee may not be expected hereafter.
Since, the delay in timely submission of audited accounts is purely attributable to MSPCL itself, hence they shall not prefer to make any claim for any carrying/inflationary related costs for the delay in true-up in their true-up submission for this year at a later date.
The break up details of subsidy amounts received from Govt. of MANIPUR by
MSPCL for 2019-20 was not provided. However, the MSPCL informed the receipt of the following amounts of subsidy pertaining to earlier years in reply to the additional information previously:
Rs. In Crores Employee O&M Office Financial Year Total subsidy cost expenses Expenses 2014-15 23.21 4.71 2.35 30.27 2015-16 25.79 4.11 8.21 38.11 2016-17 30.38 4.08 6.73 41.19 2017-18 51.26 10.56 10.12 71.94 2018-19 54.29 10.56 10.12 74.97 2019-20 Not disclosed by the Licensee
In addition, the Licensee had failed to discuss and explain about their fulfilment of Transmission Target availability achievement at 98% during the
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FY 2019-20 in their submission for FY 2019-20. This issue is one of the important regulatory parameters for full recovery of the full ARR claimed, failing which the annual charges are to be apportioned on pro-rata basis amongst the transmission facility user/users. Hence, the licensee shall give due importance to this issue in the submission of ARR in each year of their
ARR submission.
--xx—
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6. Annual Performance Review of FY2020-21
6.1 Background As per JERC (Multi Year Tariff) Regulations, 2014 read with JERC (Multi Year Tariff) (First Amendment) Regulations, 2019, MSPCL is required to submit the Annual Performance Review (APR) of the current year in each year of the Control Period along with the Tariff Petition of the ensuing year. Accordingly, MSPCL has prepared the APR for FY 2020-21 based on the provisions of the JERC (Multi Year Tariff) Regulations, 2014. The Hon’ble Commission had approved the ARR for FY 2020-21 in the Order dated 20th Mar 2020. In view of the availability of actual numbers for FY 2019-20 and first six months of FY 2020-21, MSPCL has proposed revision in ARR for FY 2020-21 considering the changes during FY 2019- 20 and actual addition of gross fixed assets during FY 2020-21 which would have a bearing on the various ARR components of MSPCL for FY 2020-21. The details of revised estimation of each element of ARR for FY 2020-21 along with rationale and justifications are explained in the sections below.
6.2 Transmission system availability As per JERC MYT regulations 2014, the target transmission availability proposed for FY 2019-20 for MSPCL is 98%. The estimated transmission availability for FY 2020-21 is also 98%.
Commission’s Analysis:
The above achievement of transmission availability to 98% must be supported by the documentary proof and it shall be made available to the Commission in this matter invariably.
6.3 Transmission Losses Petitioner’s submission It is submitted that in spite of best efforts, the metering of all feeders is yet to be completed and therefore the transmission losses for the MSPCL transmission system cannot be measured at this point in time. As submitted in the True-up section, actual data on Transmission losses shall be available after the metering
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completed as envisaged under the SAMAST Scheme. MSPCL requests the Hon’ble Commission to consider the actual transmission loss after installation of meters at the feeders and approve a transmission loss trajectory accordingly. Therefore, MSPCL requests the Hon’ble Commission to consider the transmission loss of 8.5% for FY 2020-21 as approved in the Tariff Order dated 20th March 2020.
Commission’s Analysis: As per Tripartite memorandum of understanding made on 26.07.2016 between MoP/ Govt. Of India and GOM and MSPDCL, Govt. Of Manipur will endure to reduce the transmission losses from 3.6% to 3.2% by FY 2018-19. Accordingly, the transmission losses during FY 2018-19 shall be 3.6%.
But, the transmission losses as indicated by the MSPDCL in their calculation is shown at an abnormal loss level of 8.894% for 2019-20. Given the above scenario, there is no great relevance to the figure 3.6% and bringing phenomenal change is not possible in the fag end of the FY 2020-21 at this juncture.
Therefore, the Commission has to approve intra-state transmission loss at 8.894% after obtaining MSPCL response on this item through additional information that it can’t accurately measure the actual losses due to non- availability of complete and accurate energy meter data and also after due discussion on this issue in SAC meeting held on 15th April 2021 and finally licensee is directed to keep it at 8.894% for both FY 2020-21& 2021-22 and shall endeavor to achieve it as 8.5% at least beyond FY2021-22.
6.4 Energy Requirement Petitioner’s submission MSPCL would like to submit that as per MSPDCL Tariff Order for FY 2020-21, the approved energy quantum to be transmitted at the input of MSPCL network was 1013.23 MUs.
Table 6.1 : Energy to be transmitted for FY 2020-21 Particulars Approved (MUs) Energy to be transmitted 1013.23
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Commission’s analysis
As per MSPDCL APR filing for FY 2020-21 the estimated energy to be transmitted by MSPCL at State periphery is 1052 MU (Table-22 of MSPDCL APR for FY 2020-21). On contrary, the Commission noted that the energy units available requirement at state periphery will be at 908.53 MU only. This clearly shows the MSPCL & MSPDCL are not working in tandem during the submission of ARR filings and each one of them are making different assumptions about their counter parts performance. This kind of approach would give wrong signals to the prospective consumers and may lead them into a state of confusion. In the last year Tariff Order for 2020-21 also this issue was notice and pointed out have better coordination. But still both the licensees are unwilling to coordinate each other but it requires to develop closer level of understanding between them in running the power system of the State.
Eventually, the Commission approves the energy availability at State periphery to be 908.53 MU after review instead of the projected 1013.23MU upon considering the transmission loss levels at 8.894% instead of 8.5% so projected for FY 2020-21
6.5 Operation and Maintenance Expenses 6.5.1 Employee Cost Petitioner’s submission
a. Employee cost In the Tariff Order dated 20th Mar 2020, the Commission had approved an employee cost of Rs. 69.94 Cr. MSPCL proposes to revise the employee cost considering the following: Recruitment of 358 employees is planned for the FY 2020-21. The process for the same has been initiated. The details of recruitment is provided below: I. 34 Employees under Direct Recruitment II. 39 Employees under Die-in harness scheme III. 285 employees - Others
The process is expected to be completed in the 2nd half of FY 2020-21 and the
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recruited persons are likely to join in January/February, 2021; as such 2 months’ salary is considered towards the new employees for the year. The actual employee expenditure during the FY 2019-20 & 1st six months of FY 2020-21 are Rs. 52.92 Cr. & 31.84 Cr. respectively. The employee cost for the FY 2020-21 has been estimated based on the actual figures for the FY 2019-20 & 1st six months of FY2020-21. The actual number of employees as on 31.03.2020 is 1493 and is expected to be 1773 by the end of FY 2020-21. The average employee strength is accordingly estimated to 1633. Detailed computation of employee cost is furnished in tables below.
Table 6.2:Employee cost for FY 2020-21 (in Rs. Cr.) Approved vide Actual Estimated FY Particulars ARR dated 20th (till Sept'20) 2020-21 Mar, 2020 Employee Expense (Rs. Cr.) 69.94 31.84 69.37 Average employees (Nos) 1848 1633 1633
It is submitted that the Hon’ble Commission may please consider and approve the employee expenditure as proposed above for the FY 2020-21.
Commission’s Analysis
The Commission provisionally approves employee cost at Rs. 69.37 Crores
instead of earlier approved Rs.69.94 Crs without making any adjustment for
O&M expenditure capitalization in the absence of audited accounts
availability. Therefore, the O&M cost now adopted by the Commission for
FY 2020-21 is at Rs.69.37 Crs before appropriating any capitalisation if any.
6.5.2 Repair & Maintenance Expenses Petitioner’s submission It is submitted that the Hon’ble Commission had approved R&M expenses for the FY 2020-21 as 10.56 Cr. in the tariff order Dt. 20th March 2020. MSPCL is not proposing any revision in the R&M expenses for the FY 2020-21 and the approved amount has been adopted for FY 2020-21, any differences will be
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claimed in the trueing up. Accordingly, the proposed R&M expenses for the FY 2020-21 is Rs. 10.56 Cr. As approved in the ARR Order dated 20th March 2020 as provided in the table below:
Table 6.3 : Revised R&M expense for FY 2020-21 ( Rs. Cr.) Sl. Approved in Estimated FY Particulars Unit No. ARR dt 20.03.2020 2020-21 1 Proposed R&M Expense Rs. Cr. 10.56 10.56
MSPCL requests the Commission to approve the above estimated expenses of Rs. 10.56Cr. for FY 2020-21, as the same is necessary for proper maintenance and strengthening of the system and quality of supply in the region in order to ensure consumer satisfaction and transmission system availability at 98%.
Commission Analysis:
The Commission accordingly approves R&M expenditure at Rs.10.56 Crore for FY 2020-21 as projected by the licensee in view of the additional financial commitment for system maintenance explained.
6.5.3 Administration and General Expenses
Petitioner’s submission The Commission had approved Rs. 4.00 Cr. as A&G expenses for MSPCL in the ARR Tariff Order for FY 2020-21 dated 20th March 2020. It is submitted that actual A&G Expenses for the FY 2019-20 was Rs. 10.12 Crores. It is submitted that MSPCL expects the A&G expenses for the FY 2020-21 to be in the same range as that for the previous year. Accordingly, MSPCL is proposing Rs. 10.12 Crores towards A&G expenses for the FY 2020- 21 as provided in the table below:
As such, MSPCL requests the Commission to consider the proposed A&G expenses for FY 2020-21 as provided in table below
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Table 6.4: Proposed A&G Expenses of MSPCL for FY 2020-21 (in Rs. Cr.) Estimated for Particulars Approved in ARR dt 20.03.2020 FY 2020-21 A&G Expenses 4.00 10.21
Commission Analysis:
The Commission accordingly approves A&G expenditure at Rs.4.00 Crore for FY 2020-21 as was approved earlier by the Commission as the enhancement in cost projection of Rs.10.21 crs by the licensee has not been supported or elaborated with any reasonable details for the proposed hike. Hence, the actuals incurred additionally will have to be verified with the audited actuals later to revise these costs and it cannot be done now without any basis.
6.5.4 Summary of O&M expenses Petitioner’s Submission MSPCL submits that the total O&M costs are equal to summation of employee costs, R&M costs and A&G expenses. As such, the total O&M expenses estimated for FY 2020-21 vis-à-vis approved figures are given below:
Table 6.5: O&M Expenses for FY 2020-21 by MSPCL Vs. Commission provisionally (in Rs. Cr.) Sl. Particulars Approved in Estimated for Commission No. T.O dt:20 3.20 FY 2020-21 now adopted 1 Employee Expenses 69.94 69.37 69.37 2 R&M Expenses 10.56 10.56 10.56 3 A&G Expenses 4.00 10.21 4.00 4 Total O&M Expenses 84.50 90.05 83.93
6.6 Capital Expenditure Plan for FY 2020-21 Petitioner’s submission The MSPCL has taken up several schemes as approved by the Hon’ble Commission in earlier Tariff Orders. The details of schemes in regard to which capital expenditure is estimated to incurred in FY 2020-21 is provided in the table below:
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Table 6.6: Capital Expenditure for FY 2020-21 estimated by MSPCL (Rs. Cr) Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9 I. Transmission & Distribution A.1 Ongoing Schemes A.1.1 400 kV System Installation of 400 kV Sub-Station at
1 Thoubal (NLCPR) 243.62 128.20 115.42 243.62 2.00 - 2.00 Construction of 400 kV T/L from
2 Yurembam to Thoubal via Nambol 259.68 148.84 110.84 259.68 8.00 - 8.00 Installation of 2 nos. 400 kV line
3 bays at Imphal (PG) sub-station 35.24 35.24 - 35.24 2.00 - 2.00 Total : A.1.1 538.54 312.29 226.25 538.54 12.00 - 12.00 A.1.2 132 kV System
R & M of 132/33 kV sub-station at 1 44.70 10.20 34.50 44.70 0.50 - 0.50 Yurembam(SPA/NEC)
Installation of 1x20 MVA 2 5.58 5.58 - 5.58 0.60 - 0.60 transformer at Yaingangpokpi Renovation &Modernisation of two 3 nos. of 132/33 KV S/S at Yaingang- 40.50 9.67 30.83 40.50 1.00 - 1.00 pokpi &Ningthoukhong (NLCPR)
Renovation &Modernisation of 49.69 8.10 41.58 49.69 2.30 - 2.30 4 three nos. of 132/33 kV S/S at
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Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9 Kakching, Karong & Churachand- pur (NLCPR)
5 Installation of 132/33 kV S/S at 135.88 81.90 53.98 1.00 - 1.00 Thanlon with associated line 135.88 (NLCPR) 6 Installation of 2x20 MVA,132 kV 50.38 18.32 32.05 50.38 0.70 - 0.70 Sub- Station along with associated 132 kV LILO lines & related works at Thoubal (NEC) 7 Providing of Energy Meter 3.47 3.47 - 3.47 0.50 - 0.50 Augmentation of Rengpang 132/33 12.63 12.63 - 12.63 1.00 - 1.00 8 kV sub-station by installing (3x4.16 +1x4.16) MVA 132/33 kV single phase transformers
Installation of 132/33 kV sub- 115.74 87.29 28.45 115.74 4.00 - 4.00 9 station at Morehwth erection of associated 132 kV line (NLCPR) Augmentation of 132/33 KV S/S at 3.66 3.66 - 2.00 - 2.00 Jiribam (Installation of additional 3.66 10 transformers) Stringing of 132 kV line (2nd circuit) 11 from Kakching to Churachandpur 17.44 8.28 9.16 17.44 0.50 - 0.50 (NEC)
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Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9 Construction of 132 kV S/C line 12 (3rd ckt) strung on D/C towers 10.25 10.25 - 10.25 1.40 - 1.40 from 132 kV Yurembam sub- station (State) to Yurembam sub- station (PGCIL) 13 Construction of 132/33 kV sub- 51.39 51.39 - 51.39 0.50 - 0.50 station at Tipaimukh Total: A.1.2 541.30 310.73 230.57 541.30 16.00 - 16.00 A.1.3 33 kV System
Installation of 33/11 KV (2x1 MVA) 1 7.81 4.38 3.42 7.81 0.60 - 0.60 S/S at Gelnel(NLCPR)
2 Installation of 33/11 KV (2x1 MVA) S/S at Nungbi Khullen with 14.50 9.65 4.85 14.50 1.05 - 1.05 associated 33 KV line (NLCPR)
Installation of 33/11 kV sub-station 3 11.39 11.39 - 0.50 - 0.50 at Phungyar with associated 33 kV 11.39 line 4 Installation of 33/11 kV sub-station at Kasom Khullen with associated 10.42 10.42 - 10.42 0.42 - 0.42 33 kV line
5 Installation of 33/11 kV sub-station 9.15 9.15 - 9.15 1.00 - 1.00 at Poayi at Ukhrul
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Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9
6 Installation of 33/11 kV sub-station 14.03 14.03 - 14.03 3.30 - 3.30 at Thueyng at Senapati Total : A.1.3 67.30 59.03 8.27 67.30 6.87 - 6.87 A.2 New Schemes A.2.1 33 kV System Installation of 2x5 MVA 33/11 KV 1 sub- station along with associated 11.75 11.75 - 11.75 0.50 - 0.50 33 kV line & related civil works at Chingai, Ukhrul district.
Installation of 2x5 MVA, 33/11 kV 10.44 10.44 - 10.44 0.50 - 0.50 2 sub- station along with associated 33 kV line & related civil works at Kachai, Ukhrul district. Installation of 2x5 MVA, 33/11 kV 3 sub- station along with associated 10.57 10.57 - 10.57 0.50 - 0.50 33 kV line & related civil works at Sanakeithel, Ukhrul district. Installation of new 33/11 kV sub- 8.86 8.86 - 0.50 - 0.50 4 station along with associated 33 8.86 kV line at Akampat, Imphal East. Installation of 2x5 MVA, 33/11 kV 5 sub- station along with associated 10.83 10.83 - 10.83 0.50 - 0.50 33 kV line & related civil works at
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Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9 LiyaiKhunou, Senapati district. 6 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 9.13 9.13 - 9.13 0.50 - 0.50 33 kV line & related civil works at IbudhouMarjing Installation of 2x5 MVA, 33/11 kV 7 sub- station along with associated 11.10 11.10 - 11.10 0.50 - 0.50 33 kV line & related civil works at Nambashi, Ukhrul district. Installation of 2x5 MVA, 33/11 kV 8 sub- station along with associated 7.06 7.06 - 7.06 0.50 - 0.50 33 kV line & related civil works at Khongjaron, Tamenglong district. Installation of 2x5 MVA, 33/11 kV
sub- station along with associated 9 8.90 8.90 - 8.90 0.50 - 0.50 33 kV line & related civil works at Somdal, Ukhrul District.
Installation of 2x5 MVA, 33/11 kV 10 13.06 13.06 - 13.06 0.50 - 0.50 SS at Joujangtek, Noney district
Installation of 2x5 MVA, 33/11 kV 11 12.41 12.41 - 0.50 - 0.50 SS at Oinam, Sena[pati district. 12.41
Installation of 2x5 MVA, 33/11 kV 12 8.08 8.08 - 8.08 0.50 - 0.50 SS at Gwakhal, Jiribam district.
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Sl. Cost of Source of Funding Budget Outlay, 2020-2021 No. Name of Project Project State Fund Grant Total State Fund Grants Total 1 2 3 4 5 6 7 8 9
Installation of 2x5 MVA, 33/11 kV 13 11.10 11.10 - 0.50 - 0.50 SS at Nampisha, Kamjong district 11.10 Total : A.2.1 133.29 133.29 - 133.29 6.50 - 6.50 Sub-Total (I): 1,280.43 815.34 465.09 1,280.43 41.37 - 41.37 II Misc. Scheme Construction of Administrative 1 Building - - - - 0.50 - 0.50
Construction of Divisional & Sub- - - - - 1.08 - 1.08 2 Divisional office buildings, quarters, complain rooms, etc.
Consultancy for assessment of 3 1.77 1.77 - 1.77 0.65 - 0.65 Hydro Power Potential in the State 4 AMC for SCADA - - - - 0.40 - 0.40 Total : II 1.77 1.77 - 1.77 2.63 - 2.63 Total (I+II): 1,282.20 817.11 465.09 1,282.20 44.00 - 44.00
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MSPCL Tariff Order for FY 2021-22
The status of various schemes planned for execution in FY 2020-21 are provided in the table above. All the above ongoing scheme are funded from the State budget or Central Government agencies as grants and therefore funding of these schemes are already approved.
MSPCL has considered the capitalization of assets which are expected to be completed during the year which is presented in the table below: Table 6.7: Capitalised Assets in FY 2020-21 (in Rs. Cr.) Sl. No. Name of Project Capacity Project Cost 400/132 kV, 3x105 MVA Single Phase 3X105 1 243.62 Transformer (i/c one spare) S/S at MVA Thoubal
2 400 KV D/C line from Yurembam to - 259.68 Thoubal via Nambol Installation of 2x5 MVA, 33/11 kV SS at 2X5 3 9.52 Wangjing (MoirangPalli) MVA Installation of 2x5 MVA, 33/11 kV SS at 2X5 4 9.07 Heirok MVA Installation of 2x5 MVA, 33/11 kV SS at 2X5 5 Lamdangmei (Loktak Down Stream sub- 14.84 MVA station) Installation of 2x2.5 MVA, 33/11 KV S/S 2X2.5 6 9.53 at Gumnom with associated 33 kV line. MVA Total Proposed Capitalization: 546.26
It is submitted that all ongoing capital schemes of MSPCL are being funded by State Government and Central Government agencies in the form of grants and therefore, no equity or debt has been considered by MSPCL for these schemes. Revised capital expenditure and capitalization details for FY 2020-21 as against the approved values are given below.
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Table 6.8: CWIP, Capital Expenditure and Capitalisation in FY 2020-21 (in Rs. Cr.) Approved in T.O Now Proposed Commission Sl. No. Particulars dt:20.03.20 in APR observes 1 Opening CWIP 457.98 543.60 488.14 2 Capital Expenditure 247.65 44.00 44.00 3 Gross CWIP 705.63 587.60 532.14 4 Less: Capitalisation 259.68 546.26 546.26 5 Closing CWIP 445.95 41.35 -14.12
Commission’s Analysis: MSPCL has estimated an expenditure of Rs.44.00 Crore as against the earlier approved investment amount of Rs.247.65 Crs and the reason for their underperformance in CAPEX in 2020-21 is not reasoned out clearly. Besides, the asset Capitalisation is over projected more than twice of the approved figure which is not convincing. But the reasons for such lower investments and higher & ambitious capitalization was not properly elaborated. More so, the opening CWIP amounts will have to be verified with the Audited Accounts of FY 2019-20 which are yet to be produced before Commission for scrutiny. Due this uncertainty, the above projections are kept as it is and will be suitably modified at the time of its True-up filing submission in near future with full-fledged audited accounts. Adopting closing CWIP of FY2019-20 as opening values for FY2020-21 and the subsequent CAPEX and Capitalisation in FY 2020-21, the closing CWIP resulted into a negative value which signifies that the capitalisation amount indicated is incorrect and needs to be checked thoroughly after full-fledged audited accounts are submitted. The revised CWIP status for FY2020-21 as per Commission is as follows:
Table 6.9: 2020-21 CWIP and Capitalisation as per Commission (in Rs. Cr.) MSPCL Proposed Commission Sl. No. Particulars in APR approved 1 Opening CWIP 543.60 488.14 2 Capital Expenditure 44.00 44.00 3 Gross CWIP 587.60 532.14 4 Less: Capitalisation 546.26 259.68 5 Closing CWIP 41.35 272.46
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Due to excess capitalization proposed by MSPCL in FY2020-21 beyond permissible limit, the depreciation projected by Licensee also appears to have over projected which boosts-up the ARR amount in the proposed APR and hence it is also to be reviewed & revised suitably.
6.7 Gross Fixed Assets Petitioner’s submission The approved value and revised estimate of GFA for FY 2020-21 based on the actual GFA addition during FY 2019-20 are shown in table below. It is submitted that against the approved capitalization of Rs.259.68 Cr., the revised estimate for capitalization is Rs.546.26Cr. which is based on the progress of various schemes as detailed in previous section.
Table 6.10: Gross Fixed Assets (in Rs. Cr.) Sl. APR approved Revised Estimate No. Particulars Dt.20.03.2020 For FY 2020-21 1 Opening GFA 1369.64 1305.60 2 Additions during the year 259.68 546.26 3 O&M Expenses Capitalisation - - 4 Closing GFA (1+2+3) 1629.32 1851.86
Commission’s Analysis:
The opening GFA as on 1.04.2020 needs to be checked & verified upon submission of audited accounts pertaining to FY2019-20 to start with. In the absence of the above, the Commission is constrained to adopt already T.O approved projections instead of the capitalization of Rs.546.26 Crs projected by the MSPCL as it is practically not possible to adopt as it results in negative closing CWIP as shown above in table-6.9. Since the present projected asset capitalization too appears ambitious and abnormal as compared to their past performance. Hence the Commission feels allowing to pass such huge investments will burdens the consumers in the form of higher depreciation as of now and in the ensuing years also. So, the asset capitalization will now be considered only at the level already approved in last year Tariff Order amount of Rs.259.68 Crs only on provisional basis and will be correlated with actual achievement to be reflected in its full-fledged Audited Accounts in due course.
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It is also surprising to note that despite higher capital investments made in each year, the licensee shall not express its unable to record the actual energy inflows/outflows and fails to measure the transmission losses unabatedly for years to pass on and for not installing the indispensable requisite energy meters at the designated points in the network is very much upsetting and surprising. It could be either the money spent at undesired area or investment are not properly utilized though sought approvals. All this aspect can be better comprehended by Commission if audited annual accounts are made available for scrutiny.
It is also noted from the capitalization pattern, the Licensee instead of capitalizing some portion of O&M Expenses along with capitalized asset value, they are preferring to pass it on to the consumers as revenue expenditure. Any such capital natured expenditure incurred on account of manhour spent shall have to be capitalized, as its benefit discernibly would last for a period beyond one year’s time but this prudent accounting concept is missing in the capitalization of CAPEX expenditure related issues. To the extent expenses were capitalized will be reduced from allowable expenditure in the ARR of the relevant year. But the filing submission in this year seem to have not reflected this aspect despite having pointed out by the Commission is frowned and deeply expresses its displeasure on the licensee attitude. However, at least 10% of capitalized asset value should have been assumed for O&M expenses capitalization in FY 2020-21. However, the GFA values now provisionally arrived at are tabulated below:
Table 6.11: GFA adopted by the Commission for FY 2020-21 after review (Rs. Cr) Sl. Particulars FY 2020-21 No 1 Opening GFA 1305.60 2 Add: Additions during the year 259.68 3 Add: O&M Expenses capitalized -- 4 Closing GFA 1565.28 5 Average GFA for FY2020-21 1435.44
The Commission approves estimated GFA as on 31.03.2021 at Rs.1565.28 Crore as against the projections made by MSPCL after review.
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6.7.1 Depreciation Petitioner’s submission MSPCL has calculated the depreciation at the depreciation rates provided by the Commission in JERC (MYT Tariff) Regulations 2014. Depreciation has been worked out on the opening gross fixed assets for FY 2020-21 and estimated additions as proposed during the financial year.
As such, the Commission is requested to review the depreciation figures based on the revised addition to fixed assets as shown below:
Table 6.11: Depreciation for FY 2020-21 (in Rs. Cr.) FY 2020-21 Deprecia- Rate Particular Opening Addition Closing Average tion
Land & Land 23.74 23.74 23.74 0.00% 0.00 Development 0.00 Plant & 1213.96 546.26 1760.22 1487.09 5.28% Machinery 78.52 Building 63.71 0.00 63.71 63.71 3.34% 2.13 Furniture 1.11 0.00 1.11 1.11 6.33% 0.07 &Fittings Computer 1.27 0.00 1.27 1.27 15.00% 0.19 Office 0.21 0.00 0.21 0.21 6.33% 0.01 VEqeuhipiclmese nt 1.60 0.00 1.60 1.60 9.50% 0.15 Total 1305.60 546.26 1851.86 1578.73 5.14% 81.07
The total depreciation in FY 2020-21 is projected to be Rs.81.07 Cr. However, as approved in MYT Order dated 12th March 2018, only 1.5% of assets has been considered to be not funded through grants, the same percentage is considered for projection of depreciation for FY 2020-21. MSPCL requests the Hon’ble Commission to approve the depreciation of Rs.1.22 Cr. as shown below.
Table 6.12: Depreciation to be considered for FY 2020-21 (Rs. Cr.) Approved vide ARR Revised Depreciation Dt: 20 Mar, 2020 Estimate Average value of assets 1499.48 1578.73 Rate of Dep. 5.10% 5.14% Total Depreciation 76.47 81.07
JOINT ELECTRICTY REGULATORY COMMISSION 57 MSPCL Tariff Order for FY 2021-22
Approved vide ARR Revised Depreciation Dt: 20 Mar, 2020 Estimate 1.5 % of the Depreciation 1.15 1.22
Commission’s Analysis: Table 6.13: Depreciation for FY 2020-21 approved by the Commission under APR (Rs. Cr) Approved in T.O Adopted for Sl. No Particulars 20.03.2020 FY 2020-21 1 Opening GFA 1369.64 1305.60 2 Addition during the year 259.68 259.68 3 Capitalization of expenses 0 0 (#) 4 Total GFA at the end 1626.32 1565.28 5 Average GFA 1499.48 1435.44 6 Average Depreciation rate 5.10% 5.10% 7 Depreciation 76.47 73.20 8 1.5% of the Depreciation 1.15 1.098 (#) – {No Capitalisation proposed pending submission of Audited Accounts}
The Commission approves depreciation of Rs 1.098 Crore for FY 2020-21 after review.
6.8 Interest and Finance charges Petitioner’s submission In the Order dated 20th March 2020, there were no interest and financial charges approved since entire capital expenditure of MSPCL has been funded by the State Government through grants from Central Government Ministries and Agencies like Ministry of Power (MoP) through schemes of NEC, NLCPR, DONER or through State Plan Scheme. Therefore, the utility does not have any liabilities on account of long-term loans. As such no interest charges are claimed for FY 2020-21.
Table 6.14: Interest and Finance Charges for FY 2020-21 (in Rs. Cr.) Approved vide ARR Actual Estimated FY Particulars dt: 20th Mar, 2020 (till Sept'20) 2020-21 Total Interest and Finance Charges - - -
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Commission’s Analysis: As there is no external long-term loan liability to discharge in FY 2020- 21, thus no interest charges are considered by the Commission for FY 2020-21.
6.9 Interest on working capital Petitioner’s submission For APR of FY 2020-21, MSPCL has calculated the interest on working capital as per the JERC (Multi Year Tariff) Regulations, 2014, and based on the revised estimated figures as discussed above. The interest rate is taken equal to the SBI PLR rate as on 1st April 2020 i.e., 12.90%. The calculation is shown below:
Table 6.15: Interest on Working Capital for the FY 2020-21 (in Rs. Cr.)
Approved vide th FY 2020-21 Sl. No. Particulars ARR dated 20 Mar, 2020 Estimated 1 O&M expenses 7.50 2 Maintenance of Spares (1%) 17.71 3 Receivables 7.26 4 Working Capital Requirement nil 32.48 5 Rate of interest 12.90% 6 Interest on Working Capital nil 4.19
MSPCL requests the Hon’ble Commission to revise the Interest on Working Capital as shown in the above table.
Commission’s Analysis:
It is observed by the Commission that the licensee is not availing any sort of short-term loan towards working capital needs and the funding for its revenue expense like employee cost, O&M and Office expenses, the Govt of Manipur is also providing the subsidy regularly in each year from 2014- 15 onwards. Under these circumstances, there was no need or necessity for MSPCL to go for short-term borrowing or has any fund shortage noted during the past. In view of the foregone, it is felt to be inappropriate to allow the claim for interest on working capital based on the regulatory provision for which they have no amount reflected as spent in their annual accounts. Any such kind of charges shall not be levied on the
JOINT ELECTRICTY REGULATORY COMMISSION 59 MSPCL Tariff Order for FY 2021-22
consumers for having not spent for that purpose. Therefore, interest on working capital will only be allowed on actually having availed any such loans in future and not otherwise.
Having reiterated the above in FY2020-21 tariff Order, the Commission now disapproves allowing interest on working capital for FY 2020-21 after review though the MSPCL had made a projection for Rs. 4.19 Crore once again.
6.10 Return on Equity Petitioner’s submission Regulation-22 of MYT Regulation, 2014 provides that equity for the purpose of ROI shall be 30% of capital cost or actual equity, whichever is lower. Further, Regulation-26 of MYT Regulation provides that RoE shall be allowed at the rate of 15.5% of Equity as determined under regulation-22. Accordingly, Equity for the purpose of calculating RoE has been considered as actual equity base for the FY 2020-21. Further, Regulation-30 provides that Income Tax payable shall be allowed based on actual income tax as per Audited Accounts. Income Tax for the FY 2020-21 has been considered at MAT rate of 17.16% which is the notified rate for the year. The actual equity base as per accounts in FY 2020-21 is Rs.10.05 Cr. The revised Return on Equity (inclusive of tax) along with the approved figures for FY 2020-21 are detailed in table below:
Table 6.16: Return on Equity for FY 2020-21 (in Rs. Cr.) Approved vide T.O Estimated For Particulars dt: 20th Mar, 2020 FY 2020-21 Return on Equity 1.56 1.83
The Commission is requested to approve the Return on Equity of Rs. 1.83 Crs as estimated for FY 2020-21.
Commission’s Analysis: As per MYT Tariff regulations clause-26, return on equity shall be computed on the paid-up equity, the proposed equity addition of
JOINT ELECTRICTY REGULATORY COMMISSION 60 MSPCL Tariff Order for FY 2021-22
Rs.13.40 cr is not considered as it is not paid-up at the point of review time. As such ROE is allowed only on paid equity of Rs.10.05 Crore which works out to be Rs.1.83 Crore is including MAT @ 17.16%. The Commission accordingly approves return on equity at Rs. 1.557 Crore (say Rs.1.56 crs) as against Rs.1.83 Crs estimated by MSPCL for FY 2020- 21 after review and the Income Tax incidence will be allowed based on actuals upon producing the proof of payment at the time of truing up.
6.11 Non-Tariff Income Petitioner’s submission The approved NTI for the FY 2020-21 in the ARR order Dt. 20th March 2020 is 10.20 Cr. The same has been considered for the FY 2020-21. The details are provided in the table Table 6.17: Non-Tariff Income for FY 2020-21 (in Rs. Cr.) Particulars Approved vide ARR Revised Dated 20th Mar, 2020 Estimate Non-Tariff Income 10.20 10.20
The Commission is requested to approve the Non-tariff Income of Rs. 10.20 Cr. as estimated for FY 2020-21.
Commission’s Analysis: The Commission approves non-tariff income at Rs.10.20 Crore for FY 2020-21 as projected by MSPCL after review.
6.12 Aggregate Revenue Requirement Based on the above analysis, the Aggregate Revenue Requirement estimated for FY 2020-21 by MSPCL under the annual performance review against the figures approved by the Commission for FY 2020-21 are furnished in Table below:
Table 6.18: Aggregate Revenue Requirement for FY 2020-21 (in Rs. Cr.)
Sl. Approved in ARR Revised Particulars th No. dt: 20 Mar, 20 Estimate 1 Employee Expense 69.94 69.37 2 R&M Expense 10.56 10.56 3 A&G Expense 4.00 10.12 4 Depreciation 1.15 1.22
JOINT ELECTRICTY REGULATORY COMMISSION 61 MSPCL Tariff Order for FY 2021-22
Sl. Approved in ARR Revised Particulars th No. dt: 20 Mar, 20 Estimate 5 Interest on Loans 0.00 0.00 6 Return on Capital Employed 1.56 1.83 7 Interest on working capital 0.00 4.19 8 Total Cost 87.21 97.28 9 Less: Non-Tariff income 10.20 10.20 10 Less: Expenses Capitalized 0.00 0.00 11 Aggregate Revenue Requirement 77.01 87.08 MSPCL requests the Hon’ble Commission to revise the ARR for FY 2020-21 as proposed above.
Commission Analysis The details of each cost elements as considered by the Commission after review is tabulated below for FY 2020-21:
Table 6.19: Aggregate Revenue Requirement Commission approved (in Rs. Cr.) Sl. No. Particulars (FY 2020-21) Approved APR 1 Employee Expense 69.37 2 R&M Expense 10.56 3 A&G Expense 4.00 4 Depreciation 1.098 5 Interest on Loans --- 6 Return on Capital Employed 1.56 7 Interest on working capital --- 8 Income Tax --- 9 Total Cost 86.588 10 Less: Non-Tariff income 10.20 11 Aggregate Revenue Requirement 76.388
The Commission therefore approves net ARR at Rs. 76.39 Crore for FY 2020- 21 as against the MSPCL projected APR amount of Rs.87.08 Crs by MSPCL after review.
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7. Determination of Transmission ARR for FY 2021-22
7.1 Introduction
After the First Control Period i.e. FY 2016-17 to FY 2017-18, the Hon’ble Commission in its Tariff Order for FY 2017-18 had directed that the Second Control Period shall be for a period of five years from 1.04.2018 and that the Petitioner is required to submit ARR for the Control Period FY 2018-19 to FY 2022-23. Accordingly, MSPCL submitted its Multi Year Tariff (MYT) Petition for the determination of ARR for each year of the Second Control Period i.e. FY 2018-19 to FY 2022-23 along with proposed transmission tariff for FY 2018-19 and orders issued vide T.O dt. 12.03.2018.
In line with the provisions of the JERC (Multi Year Tariff) Regulations, 2014, the licensee is required to submit a petition for determination of tariff for the ensuing year along with the truing up for the previous year and APR for current year. MSPCL is submitting its revised ARR and tariff petition for FY 2021-22 on the basis of the principles outlined in JERC (Multi Year Tariff) Regulations, 2014. MSPCL has considered the past trends and taken cognizance of actual financial numbers for FY 2019-20 and first six months of FY 2020-21 to revise the ARR for FY 2021-22 and propose suitable tariff for recovery of the same. The following sections explain in detail the basis and forecasts of the following elements for FY 2021-22: a. Capital Investment Plan for the current year and ensuing year b. Determination of Aggregate Revenue Requirement by forecasting the following costs, other income & returns: i. Employee Cost ii. Repairs & Maintenance Cost iii. Admin & General Cost iv. Interest Cost v. Interest on Working Capital vi. Depreciation vii. Return on Equity viii. Non-Tariff Income c. Proposed Transmission Tariff for recovery of the proposed ARR for FY
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2021-22. 7.2 Contracted Capacity in Manipur Petitioner’s Submission
• The own generation of Manipur is very less, therefore it relies mainly on the allocation of power from Central Generating Stations like NHPC, NEEPCO, OTPC Palatana Unit-I and Tripura based Baramura power plant etc. to meet its energy requirement. • The MSPDCL has provided the projected contracted capacity as 280 MW and projected energy to be transmitted as 1590 MUs during the FY 2021-22. MSPCL has considered the above contracted capacity & energy for the FY 2021-22.
The details of existing transmission network of Manipur are as provided in the table below:
Table 7. 1: MSPCL Transmission infrastructure snapshot
Voltage Level 400 kV 132 kV 33 kV FY 19-20 0 17 92 No. of Sub-Station FY 20-21 1 19 104 FY 21-22 1 19 121 FY 19-20 - 698.30 817.15 Transformation Capacity FY 20-21 315 778.30 942.35 (MVA) FY 21-22 315 778.30 1097.35 FY 19-20 - 638.46 1602.78 Line Length (km) FY 20-21 45 673.01 1723.78 FY 21-22 45 673.01 2099.78
Commission Analysis:
The Transmission capacity indicated for FY 2021-22 is at 280MWs, while MSPDCL has Projected it as 254.38MWs only in their ARR filings and the energy to be transmitted by MSPCL would also be dependent on the quantum of energy so finalized by the Commission for MSPDCL as per their needs and requirement. Accordingly, the same is considered at 934.89 MU by Commission after excluding outside state sales quantity of 50.13MU.
Capital Expenditure
• In the MYT Petition, MSPCL had submitted year wise capital
JOINT ELECTRICTY REGULATORY COMMISSION 64 MSPCL Tariff Order for FY 2021-22
expenditure for the various schemes proposed to be undertaken during the Control Period FY 2018-19 to FY 2022-23. The Commission had approved the same in the MYT Order dated 12th March 2018. • Considering the progress of various schemes since the issuance of the MYT Order, MSPCL proposes to revise the capital expenditure for FY 2021-22 for the purpose of revised projection of ARR. The revised capital expenditure is based on the current status of the various schemes which are under implementation. • The proposed capital expenditure during FY 2021-22 along with scheme-wise details are provided in the table below:
\\ Intentionally kept blank \\
JOINT ELECTRICTY REGULATORY COMMISSION 65 MSPCL Tariff Order for FY 2021-22
7.3 Proposed capital expenditure on ongoing and new projects during FY 2021-22 Table 7.2: Proposed Capital expenditure on ongoing and new projects during FY 2021-22 (in Rs. Cr.)
Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 I Transmission & Distribution A.1 Ongoing Schemes A.1.1 400 kV System 1 Installation of 400 kV Sub-Station at Thoubal (NLCPR) 243.62 128.20 115.42 243.62 22.65 - 22.65 2 Construction of 400 kV T/L from Yurembam to Thoubal via Nambol 259.68 148.84 110.84 259.68 37.03 - 37.03 3 Installation of 2 nos. 400 kV line bays at Imphal(PG) sub-station 35.24 35.24 - 35.24 2.79 - 2.79 Total : A.1.1 538.54 312.29 226.25 538.54 62.47 - 62.47 A.1.2 132 kV System 1 Renovation &Modernisation of two nos. of 132/33 KV S/S at 40.50 9.67 30.83 40.50 2.42 - 2.42 Yaingangpokpi&Ningthoukhong(NLCPR) 2 Renovation &Modernisation of three nos. of 132/33 kV S/S at 49.69 8.10 41.58 49.69 0.47 - 0.47 Kakching, Karong&Churachandpur(NLCPR) 3 Installation of 132/33 kV S/S at Thanlon with associated line (NLCPR) 135.88 81.90 53.98 135.88 9.56 - 9.56 4 Installation of 2x20 MVA,132 kV Sub- Station along with associated 50.38 18.32 32.05 50.38 6.67 - 6.67 132 kV LILO lines & related works at Thoubal(NEC) 5 Augmentation of Rengpang 132/33 kV sub-station by 12.63 12.63 - 12.63 0.51 - 0.51 installing(3x4.16+1x4.16)MVA 132/33 kV single phase transformers 6 Cost for diversion of forest land for construction of 50.52 50.52 - 50.52 50.52 - 50.52 transmission projects 7 Installation of 132/33 kV sub-station at Morehwth erection of 115.74 87.29 28.45 115.74 27.92 - 27.92 associated 132 kV line(NLCPR) 8 Augmentation of 132/33 KV S/S at Ningthoukhong (Installation of 4.99 4.99 - 4.99 4.99 - 4.99 additional transformers)
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Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 9 Augmentation of 132/33 KV S/S at Kongba (Installation of additional 2.61 2.61 - 2.61 2.61 - 2.61 transformers) 10 Stringing of 132 kV line (2nd circuit) from Kakching to 17.44 8.28 9.16 17.44 0.59 - 0.59 Churachandpur(NEC) 11 Installation of 132 kV sub-station along with associated 132 kV line at 56.21 56.21 - 56.21 8.30 - 8.30 Elangkhangpokpi 12 Construction of 132 kV S/C line(3rd ckt) strung on D/C towers 10.25 10.25 - 10.25 1.63 - 1.63 from 132 kV Yurembam sub-station (State) to Yurembam sub- station (PGCIL) 13 Construction of 132/33 kV sub-station at Tipaimukh 51.39 51.39 - 51.39 6.33 - 6.33 14 Construction of 132 kV link T/L from 400/132 kV sub-station, 15.83 15.83 - 15.83 5.09 - 5.09 Thoubal to 132 kV sub-stations at Kongba, Yaingangpokpi and Hundung on existing Kongba to Kakching 132 kV T/L. 15 Construction of 132 kV link T/L from 400/132 kV sub-station, 7.98 7.98 - 7.98 1.98 - 1.98 Thoubal to 132 kV sub-stations at Kakching& Chandel on existing Kongba to Kakching 132 kV T/L. 16 Construction of 132 kV link T/L from 400/132 kV sub-station, 22.34 22.34 - 22.34 8.72 - 8.72 Thoubal to 132 kV sub-stations at Moreh on Kakching to Moreh 132 kV T/L. Total: A.1.2 644.36 448.30 196.06 644.36 138.30 - 138.30 A.1.3 33 kV System 1 Installation of 33/11 kV sub-station at Chakpikarong(NLCPR) 10.20 5.20 4.99 10.20 0.78 - 0.78 2 Installation of 33/11 kV S/S at Sekmaijin(NLCPR) 6.43 3.04 3.40 6.43 0.75 - 0.75 3 Installation of 33/11 kV S/S at UkhrulKhunjao(NLCPR) 9.42 5.64 3.79 9.42 0.49 - 0.49 4 Installation of 2x5 MVA 33/11 kV sub- station with associated 33 KV 14.84 7.83 7.01 14.84 2.15 - 2.15 line at Power House site of Loktak Down Stream HE Project(NEC) 5 Installation of 33/11 kV sub-station with associated 33 KV line at 9.10 4.25 4.85 9.10 0.59 - 0.59 Sugnu(NLCPR)
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Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 6 Installation of 33/11 KV (2x1 MVA) S/S at Gelnel(NLCPR) 7.81 4.38 3.42 7.81 0.79 - 0.79 7 Installation of 33/11 KV (2x1 MVA) S/S at NungbiKhullen with 14.50 9.65 4.85 14.50 1.11 - 1.11 associated 33 KV line(NLCPR) 8 Re-stringing & strengthening of 33 kV lines 11.54 11.54 - 11.54 3.70 - 3.70 9 Installation of 33/11 KV (2x1 MVA) S/S at Gumnom with associated 9.53 5.17 4.36 9.53 0.94 - 0.94 33 kV line(NLCPR) 10 Renovation of 33/11 KV S/S at Khoupum 5.06 5.06 - 5.06 0.85 - 0.85 11 Installation of 33/11 kV sub-station at Phungyar with associated 33 kV 11.39 11.39 - 11.39 1.46 - 1.46 line 12 Installation of 33/11 kV sub-station at KasomKhullen with associated 10.42 10.42 - 10.42 0.59 - 0.59 33 kV line 13 Installation of 33/11 kV sub-station at Gamphazol with associated 33 10.06 10.06 - 10.06 0.48 - 0.48 kV line 14 Installation of 33/11 kV sub-station at Mayangkhang with associated 9.63 2.71 6.92 9.63 0.79 - 0.79 33 kV line(NEC) 15 Installation of 33/11 kV sub-station at Mao with associated 33 kV 10.21 3.17 7.04 10.21 0.71 - 0.71 line(NEC) 16 installation of 33/11 kV sub-station at Poayi at Ukhrul 9.15 9.15 - 9.15 4.19 - 4.19 17 installation of 33/11 kV sub-station at Thueyng at Senapati 14.03 14.03 - 14.03 6.56 - 6.56 18 Construction of 33 kV D/C line on STP from 132/33 kV SS at Thoubal 11.83 11.83 - 11.83 0.10 - 0.10 to 33/11 kV SS at Thoubal (old) 19 Installation of 1x3.15 MVA 33 kV sub- station at along with associated 9.52 1.33 8.19 9.52 0.33 2.50 2.83 33 kV line and related works at Yairipok under IPDS 20 Installation of 1x3.15 MVA 33 kV sub- station at along with associated 9.67 1.48 8.19 9.67 - 0.44 0.44 33 kV line and related works at Wangoi under IPDS 21 Installation of 1x3.15 MVA 33 kV sub- station at along with associated 9.52 1.33 8.19 9.52 0.33 1.82 2.15 33 kV line and related works at Wangjing under IPDS
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Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 22 Installation of 1x3.15 MVA 33 kV sub- station at along with associated 9.07 1.21 7.87 9.07 0.21 1.76 1.97 33 kV line and related works at Heirok under IPDS 23 Augmentation of 33/11 kV sub-station at Kangpokpi under IPDS 1.43 0.26 1.17 1.43 - 0.96 0.96 24 Augmentation of 33/11 kV sub-station at Karong under IPDS 1.66 0.31 1.36 1.66 - 0.43 0.43 Total : A.1.3 226.04 140.44 85.60 226.04 27.89 7.90 35.80 A.2 New Schemes A.2.1 33 kV System 1 Installation of 33/11 kV sub-station at Longpi with associated 33 kV 9.00 9.00 - 9.00 1.80 - 1.80 line 2 Installation of 33/11 kV sub-station at Nungleiband with associated 33 9.00 9.00 - 9.00 1.80 - 1.80 kV line 3 Installation of 33/11 kV sub-station at Mualnuam at Ccpur. 12.15 12.15 - 12.15 2.43 - 2.43
4 Installation of 2x5 MVA 33/11 KV sub- station along with associated 11.75 11.75 - 11.75 2.25 - 2.25 33 kV line & related civil works at Chingai, Ukhrul district. 5 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 10.44 10.44 - 10.44 1.99 - 1.99 33 kV line & related civil works at Kachai, Ukhrul district.
6 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 10.57 10.57 - 10.57 2.01 - 2.01 33 kV line & related civil works at Sanakeithel, Ukhrul district. 7 Installation of new 33/11 kV sub-station along with associated 33 kV 8.86 8.86 - 8.86 1.67 - 1.67 line at Akampat, Imphal East. 8 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 10.83 10.83 - 10.83 2.07 - 2.07 33 kV line & related civil works at LiyaiKhunou, Senapati district. 9 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 9.13 9.13 - 9.13 1.73 - 1.73 33 kV line & related civil works at IbudhouMarjing
10 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 11.10 11.10 - 11.10 2.12 - 2.12 33 kV line & related civil works at Nambashi, Ukhrul district. 11 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 7.06 7.06 - 7.06 1.31 - 1.31
JOINT ELECTRICTY REGULATORY COMMISSION 69 MSPCL Tariff Order for FY 2021-22
Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 33 kV line & related civil works at Khongjaron, Tamenglong district. 12 Installation of 2x10 MVA, 33/11 kV sub- station along with associated 21.52 21.52 - 21.52 4.30 - 4.30 33 kV line & related civil works at sports University, Koutruk, Imphal West District. 13 Installation of 2x10 MVA, 33/11 kV sub- station along with associated 11.25 11.25 - 11.25 2.25 - 2.25 33 kV line & related civil works at Sports Complex, KhumanLampak, Imphal East District. 14 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 9.35 9.35 - 9.35 1.87 - 1.87 33 kV line & related civil works at Naharup, Imphal East District. 15 Construction of 33 kV D/C line on double poles with associated line 15.38 15.38 - 15.38 3.08 - 3.08 bays from Yaingangpokpi to KhumanLampak 16 Stringing of 33 kV line from Rengpang to Noney along with 7.67 7.67 - 7.67 1.53 - 1.53 associated line bays. 17 Construction of 33 kV line on STP along with associated line bays 7.80 7.80 - 7.80 1.56 - 1.56 from Tamenglong to Tamei 18 Installation of 2x5 MVA, 33/11 kV sub- station along with associated 8.90 8.90 - 8.90 1.68 - 1.68 33 kV line & related civil works at Somdal, Ukhrul District. 19 Stringing of 33 kV line from Chandel 132/33 kV SS to 33 kV SS at 5.12 5.12 - 5.12 1.02 - 1.02 Joupi 20 Stringing of 33 kV line from Tousem 33/11 kV SS to 33/11 kV SS at 8.98 8.98 - 8.98 1.80 - 1.80 Oinamlong 21 Installation of 2x5 MVA, 33/11 kV SS at Joujangtek, Noney district 13.06 13.06 - 13.06 2.51 - 2.51 22 Installation of 2x5 MVA, 33/11 kV SS at Oinam, Sena[pati district. 12.41 12.41 - 12.41 2.38 - 2.38 23 Installation of 2x5 MVA, 33/11 kV SS at Gwakhal, Jiribam district. 8.08 8.08 - 8.08 1.52 - 1.52 24 Installation of 2x5 MVA, 33/11 kV SS at Nampisha, Kamjong district 11.10 11.10 - 11.10 2.12 - 2.12 25 Augmentation, R&M of 33/11 kV substations-28 nos.(Hill- 86.07 86.07 - 86.07 8.61 - 8.61 Tengnoupal, Tolloi, Kamjong, Jiribam, Lakhaimai,Leimakhong, Litan, Maram, New Chayang, Saikul, Shivapurikhal, Singhat, Tadubi, Tamei,
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Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 Tamenglong, Tousem, Namarei; Valley- Ningthoukhong, Iroisemba, Moirang, Kakching, Bishnupur, Nilakhuthi, Yaingangpokpi, Napetpalli, Wangjing, MoirangKhunou, Nambol) 26 33/11 kV Sub-Station at Rilamcentre 12.35 12.35 - 12.35 1.24 - 1.24 27 33/11 kV Sub-Station at Haochong 10.96 10.96 - 10.96 1.10 - 1.10 28 33/11 kV Sub-Station at Tuinem 13.05 13.05 - 13.05 1.31 - 1.31 29 33/11 kV Sub-Station at Phadang 10.96 10.96 - 10.96 1.10 - 1.10 30 33/11 kV Sub-Station at Lambui 13.05 13.05 - 13.05 1.31 - 1.31 31 33/11 kV Sub-Station at Shirakhong 9.01 9.01 - 9.01 0.90 - 0.90 32 33/11 kV Sub-Station at Wahong 10.96 10.96 - 10.96 1.10 - 1.10 33 33/11 kV Sub-Station at Kwatha 10.26 10.26 - 10.26 1.03 - 1.03 34 33/11 kV Sub-Station at Sita 10.68 10.68 - 10.68 1.07 - 1.07 35 33/11 kV Sub-Station at Khengjoy 9.84 9.84 - 9.84 0.98 - 0.98 36 33/11 kV Sub-Station at Patpuihmun 12.35 12.35 - 12.35 1.24 - 1.24 37 33/11 kV Sub-Station at Thongju Part-II 9.01 9.01 - 9.01 0.90 - 0.90 38 Reconductoring of Imphal Ring Main 33 kV System with HTLS 0.93 0.93 - 0.93 0.09 - 0.09 conductor and renovation of associated sub-stations Total : A.2.1 469.99 469.99 - 469.99 70.75 - 70.75 Sub-Total (I): 1,878.93 1,371.01 507.91 1,878.93 299.41 7.90 307.32 III Misc. Scheme 1 Consultancy for Hydel Investigation 3.50 3.50 - 3.50 1.05 - 1.05 2 Construction of Administrative Building - - - - 0.50 - 0.50 3 Construction of Divisional & Sub- Divisional office buildings, - - - - 1.00 - 1.00 quarters, complain rooms, etc. 4 Renovation and up-gradation of grid sub- station of MSPCL under 50.06 16.56 33.50 50.06 8.68 3.35 12.03 PSDF funding 5 AMC for SCADA - - - - 0.40 - 0.40
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Source of Funding Fund Projection(2021-22) Sl. Cost of Name of Project State State No. Project Grant Total Grant Total Fund Fund 1 2 3 4 5 6 7 8 9 6 Expansion/Upgradation of SCADA/EMS System of SLDCs of NER 4.95 4.95 - 4.95 2.37 - 2.37 7 Installation of Reactive Power Solution on 33/11 kV sub-stations in 25.55 3.78 21.77 25.55 3.78 4.35 8.13 Manipur under PSDF Total : II 84.06 28.79 55.27 84.06 17.78 7.70 25.49 Total (I+II): 1,962.98 1,399.80 563.18 1,962.98 317.20 15.61 332.81
JOINT ELECTRICTY REGULATORY COMMISSION 72 The Commission is requested to approve the revised capital expenditure proposed above for ongoing and new schemes during the year FY 2021-22. It is submitted that these schemes shall help the utility in delivering quality and reliable power in the State.
Commission Analysis: As was already enumerated above by the licensee in the previous year ARR filing that the construction of transmission lines and sub-stations are being funded by the Central government and World Bank and there is no financial commitment for MSPCL. Besides the project is also being executed by the PGCIL on behalf of State government hence the investment plan is very much welcomed by the Commission for strengthening of the network from the grants/subsidy and it shall reap the benefit in the form of reduced losses and early completion of the scheme is much preferred. In the above list of capital works (i.e.,Table-7.2) for FY2021-22, item-6 under 132 kV system amounting to Rs.50.52Crs proposed towards “Cost of diversion of forest land” can’t be considered as an asset description and this cost must be apportioned amongst the main transmission projects getting its benefit and the kind of description cannot be construed as CAPEX and hence it will be disallowed from CAPEX for 2021-22 on the face of it and the allowed CAPEX would be at Rs.282.29Crs (i.e., Rs.332.81Crs less Rs.50.52Crs) and the same is reflected in Table-7.3 below.
3. Funding of Capital Investment Plan a. It may be noted that funding for most of the schemes are covered by grants from State Government or grants from Central Government bodies like NLCPR and NEC. As such, there are no loans or equity for funding of such schemes. For all these schemes, 100% of the funding is covered by grants from State Government or Central Government. These schemes include Normal State Government plan schemes, NLCPR funding and NEC funding. b. For the ongoing schemes the funding is primarily through State Government and Central Government grants and therefore no equity or loan is envisaged for these schemes. However, it is submitted that MSPCL had taken a loan of Rs. 150 Cr. from REC (which was disbursed in Sept’ 16) to expedite the projects which would have been delayed because of slow release of funds from the State Government. The principal amount of the loan shall be paid as grants from the State MSPCL Tariff Order for FY 2021-22
Government in the ensuing years and the interest of the loans shall also be recovered from State Government as capital grants (plan component) being interest during construction. Therefore, this loan has also been considered as a grant and no interest has been claimed corresponding to the loan.
c. As the funds for the new schemes is still to be finalized, in view of the past practice where MSPCL has been receiving the funds from the State and Central Government or its agencies as grants, it is proposed that the funding of new works proposed for FY 2021-22 shall be in form of grants from the State / Central Government and their agencies. However, the Commission is requested to consider the funding pattern of these works based on the actual funding in case of any change in funding pattern with respect to the proposed at the time of true-up for FY 2021-22.
Table 7.3: Proposed Funding of capital Expenditure during FY 2021-22 (in Rs. Cr.) Year Equity Debt Grant (Central Govt Commission Bodies/ State Govt) provisionally approves FY 2021-22 0 0 332.81 282.29 Crs
MSPCL has considered the capitalization of those works which are proposed to be completed by the end of FY 2021-22. Accordingly, details of capitalization, capital expenditure, capital works in progress & GFA are provided in tables below:
4. Capitalization
A Summary of proposed capitalization and capital expenditure for the FY 2021-22 is provided below:
Table 7.4: Proposed Capitalization for the FY 2021-22 (in Rs. Cr.) Sl. No. Name of the Project Proposed Commission Expenditure provisionally 1 Installation of 2x2.5 MVA, 33/11 kV sub- 9.15 5.19 (*) station at Paoyi, Ukhrul District. 2 Installation of 2x2.5 MVA, 33/11 kV sub- 14.03 9.86 (*) station at Thuyeng, Senapati District. Total Proposed Capitalization: 23.18 15.05 (*) - The Commission Provisional capitalisation figures are the add-up values of amounts spent for the respective project by MSPCL in 2020-21 and 2021-22 as indicated in the Capex details.
Table 7.5: Capital Expenditure & Capital Work-in-Progress (in Rs. Cr.) Particulars Commission MYT Tariff Order Proposed Now provisionally For 2021-22 FY 2021-22 approves Opening CWIP 123.42 41.35 272.46
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Capital Expenditure 123.21 332.81 282.29 Capitalization during the Year 123.83 23.18 15.05 Closing CWIP 122.80 350.97 539.70
Commission Analysis:
The closing balance of FY 2020-21 would be the opening balance for FY 2021-22 is subjected to the verification has already been discussed in earlier 2019-20 section on this issue on account of non-availability of audited balance sheet for FY2019-20. Out of the proposed capital investment executed from the grants of Central government/State government and the amount of CWIP capitalization transfer to fixed assets are revised provisionally and indicated in the above relevant tables of CWIP and Capitalisation at table 7.4 and 7.5 above respectively. As the asset capitalisation amount has decreased, the depreciation applicable for FY 2021-22 has to be revised suitably.
5. Gross Fixed Assets (GFA) Gross Fixed Assets for FY 2021-22 are projected based on the closing gross fixed assets estimated for FY 2019-20 and the projected capitalization for FY 2020-21. The details of opening GFA, addition during the FY 2021-22 & closing GFA is provided in the table below. Table 7.6: Projected Gross Fixed Assets for FY 2021-22 (in Rs. Cr.)
Proposed for FY 2021-22 Particular Opening Addition Closing Land & Land Development 23.74 0.00 23.74 Plant & Machinery 1760.22 23.18 1783.40 Building 63.71 0.00 63.71 Furniture &Fittings 1.11 0.00 1.11 Computer 1.27 0.00 1.27 Office Equipment 0.21 0.00 0.21 Vehicles 1.60 0.00 1.60 Total 1,851.86 23.18 1,875.04
Table 7.7: Proposed Gross Fixed Assets for FY 2021-22 (in Rs. Cr.) Approved vide MYT Revised Proposed Commission Particular Order For 2021-22 for FY 2021-22 Provl. approval Opening GFA 2,405.33 1,851.86 1565.28 Closing GFA 2,534.80 1,875.04 1580.33
It is submitted that the Hon’ble Commission may kindly consider & approve the GFA
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as proposed above for the FY 2021-22.
Commission Analysis: All the opening balances are linked to the verification with audited actual figure of FY 2018-19 & 2019-20, and this is possible only on its submission for scrutiny. However, the additions to the assets now being proposed by the MSPCL is suitably revised on provisional basis by the commission duly considering the capitalisation of Rs.15.05Crs in FY 2021-22 and tabulated closing GFA as Rs.1580.33Crs in Table 7.7 above.
7.4 Operation & Maintenance Expenses
7.4.1 Operation and Maintenance expenses comprise of the following heads: (a) Employees Expenses which includes the basic pay, dearness pay, dearness allowances, house rent allowances, and other allowances, new pension scheme paid to the staff; (b) Repair and Maintenance (R&M) Expenses, which include all expenditure incurred on the maintenance and upkeep of transmission assets; and (c) Administrative and General Expenses, which include all expenditure incurred in operating a business such as office and IT expenses, consultancy and regulatory fee etc. • MSPCL has projected each element of O&M expenses i.e. employee expense, R&M costs and A&G expense separately considering the actual data for last three years and first six months of FY 2020-21 along with adjustments and future plans of the utility.
• The methodology adopted by MSPCL for projecting the values of each component of the O&M expense for FY 2021-22 has been explained in the following section.
7.4.2 Employee Cost
Petitioner’s submission In the MYT order Dt.12.03.2018 Hon’ble Commission had approved employee expenses at Rs. 77.46 Cr. for the FY 2021-22.
The employee expenses for the FY 2021-22 have been projected on the basis of actual employee expenses for the FY 2019-20, estimated expenses for the FY 2020-
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21 and expected increments/escalations applicable to the ensuing year. The cost attributable towards employees expected to be recruited during the 2nd half of the current financial year as detailed in the section of APR for the FY 2020-21 above, has been considered for the entire year of FY 2021-22
The year wise number of employees is provided in the table below.
Table 7.8: Projection of MSPCL Employee for FY 2021-22
FY 2019-20 FY 2020-21 FY 2021-22 Particulars (Actuals) (Estimated) (Projected) Opening Employees 1571 1493 1773 Retirements 78 78 52 Recruitments - 358 - Closing Number of
employees 1493 1773 1721 Average Number of Employees 1532 1633 1747
• MSPCL would like to bring to the notice of Hon’ble Commission that certain components of employee cost should be considered as uncontrollable factors, especially factors like DA/Basic hike through Government, revision through Pay Commission etc. MSPCL would not be in a position to not allow these increases as any deviation will be against law/policy. The revision in salaries and other incentives are kept at par with the other departments of Government of Manipur and is a legal binding on the department to follow the same. Therefore, MSPCL requests the Commission to adopt a relaxed and realistic approach for employee expenditure, keeping in view the obligation of the organization towards the employees.
• MSPCL has projected the employee cost for the FY 2021-22 based on above submissions. The projected employee cost is detailed in the table below.
Table 7.9: Proposed Employee Cost for FY 2021-22 (in Rs. Cr.) Approved vide Revised Particulars MYT Order For Proposed For 2021-22 2021-22 Employee Expense (Rs. Cr.) 77.46 87.71 Average number of employees 2074 1747 (numbers)
MSPCL requests the Hon’ble Commission to approve the employee costs as projected Joint Electricity Regulatory Commission 77
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above by the Petitioner.
Commission’s Analysis The increase in employee cost projected by MSPCL in FY 2021-22 is at Rs.87.71 Crore from that of in FY 2020-21 at Rs.69.37 Crore in this filing for recruitment of 358 no. fresh recruitments besides 78 retirements for an average 1633 employee’s strength considering the new recruitments as contemplated in 2021-22. Given the situation for FY2021-22 the employee cost is approved at 87.71 crs which also includes some cushion for annual increment to their pay emoluments. Hence, the Commission determined the employee cost for FY 2021-22 at Rs.87.71 Crs as proposed by the MSPCL.
Thus, the Commission accordingly approves for Rs.87.71 Crore towards employee cost during FY 2021-22 without any O&M capitalisation reduction.
7.4.3 Repairs & Maintenance Expenses Petitioner’s submission • These expenses include expenses on repairs and maintenance of Plant and Machinery, Transformers, Lines, cable network etc., Vehicles, Office equipment, etc. • It is submitted that the Hon’ble Commission has approved Rs. 27.79 Cr. as R&M expenses for the FY 2021-22, however, MSPCL is projecting Rs. 10.56 Cr. towards R&M expenses for the year. • The proposed R&M expense for FY 2021-22 is provided in the table below:
Table 7.10: Proposed Repairs & Maintenance Expense for FY 2021-22 (in Rs. Cr.) Approved in Proposed For Particulars MYT Order For2021-22 FY 2021-22 R&M Expenses 27.79 10.56
MSPCL requests the Commission to approve the R&M expense for proper maintenance and strengthening of the transmission system.
Commission’s Analysis: Since the MSPCL has preferred to claim the R&M expenses at a level lower than the value approved in earlier issued MYT Order and it also appears that the amount incurred in 2019-20 & 2020-21 were at 9.50 Crs and 10.56 crs respectively were adequate to maintain the network. Since licensee prefers
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to claim the same cost level as was in 2020-21, the Commission also approves the R&M expenses as per the estimate made by the licensee for FY 2021-22 at Rs.10.56 Crs without any change.
7.4.4 Administration & General Expense Petitioner’s submission
1. Administrative and General (A&G) expense comprise of various sub-heads including the following: • Travel and conveyance expenses • Hydel investigation expenses • Consultancy and regulatory fees • Office expenses • Publication expenses • Other administration expenses
Hon’ble Commission has approved A&G expenses of Rs. 5.30 Cr. for the FY 2021-22 in the MYT order Dt. 12th March 2018. It is submitted that the expenses towards A&G are higher than the figures approved by the Hon’ble Commission in the MYT Order. MSPCL has projected A&G expenses based on the past trends of the expenses. The actual A&G expenses for the FY 2019-20 is Rs. 08.09 Crores. These expenses increase year on year on account of inflation apart from the other factors such as commissioning of new substations & transmission lines. However, MSPCL shall make all efforts to restrict the expenses to the extent possible. Accordingly, MSPCL is projecting the A&G expenses for the FY 2021-22 at Rs. 6.00 Crores.
• The proposed A&G expenses for FY 2021-22 are as provided in the table below: Table 7.11: Proposed A&G Expenses for FY 2021-22 (in Rs. Cr.) Approved in Proposed For A&G Cost MYT Order For 2021-22 FY 2021-22 Total A&G Expenses 5.30 6.00
The Commission now approves the A&G expenses only at Rs.5.60Crs for FY 2021-22 as the reason for enhancement linking to commissioning of SS and
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Transmission lines is not acceptable as it is not a listed cost component especially in A&G expenditure, while the R&M expenses so projected now were lower than MYT approved figure.
7.5 Summary of O&M expenses Based on the above-mentioned expenses for employee cost, R&M & A&G, the total O&M expenses for the FY 2021-22 projected by MSPCL and those are approved by the Commission are tabulated below: Table 7.12: Proposed O&M Expenses for FY 2021-22 (in Rs. Cr.) Approved vide Proposed for Commission Particulars MYT Order FY 2021-22 now approved Employee Expense 77.46 87.71 87.71 R & M Expenses 27.79 10.56 10.56 A&G Expenses 5.30 6.00 5.60 Total O&M Expenses 110.55 104.27 103.87 Expenses capitalized @ 5.1% 5.64 - -- Total O&M Expenses 104.91 104.27 103.87 (*) – O&M expenses capitalisation is adopted on the capitalised value of assets during the year.
7.6 Depreciation Petitioner’s submission • Depreciation is charged on the basis of straight-line method, on the average GFA in use during the financial year. The depreciation is based on the category wise assets and the depreciation rates provided by the Commission in JERC (MYT Tariff) Regulations 2014. • In MSPCL, as mentioned earlier, most of the funding is through government grants, depreciation on the assets funded through government grants have not been considered. • As approved by Hon’ble Commission in MYT Order dated 12th March 2018, only 1.5% of total depreciation is considered towards ARR projection for FY 2021-22. MSPCL, requests the Hon’ble commission to consider the depreciation for FY 2021-22as shown in the table below:
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Table 7.12: Projected Depreciation for FY 2021-22 (in Rs. Cr.) FY 2021-22 (Projected) Particulars Average Depreciation Depreciation Assets Rate Land & Land Development 23.74 0.00% 0.00 Plant & Machinery 1771.81 5.28% 93.55 Buildings 63.71 3.34% 2.13 Furniture &Fittings 1.11 6.33% 0.07 Computer 1.27 15.00% 0.19 Office Equipment 0.21 6.33% 0.01 Vehicles 1.60 9.50% 0.15 Total 1,863.45 96.11
Table 7.13: Proposed Depreciation for FY 2021-22 (in Rs. Cr.) Approved vide MYT proposed for Particulars Order For 2021-22 FY 2021-22
Total Depreciation 96.11 Percentage of assets not funded through grants 1.69 1.50% Depreciation to be considered 1.69 1.44
Commission’s Analysis: As per the Tariff Regulations 2014, depreciation has to be worked out on average GFA on straight line method with the average rate of depreciation. In the absence of audited annual accounts for FY 2018-19 & 2019-20 the average actual rate of depreciation to be adopted is not readily available. Accordingly, depreciation as worked out by the MSPCL at Rs.1.44 Crs is provisionally approved in FY 2021-22 for ARR determination purpose. However, the depreciation charge will be scrutinised subsequently based on incurred actuals to be reflected in annual account during the true-up claim.
7.7 Interest and Finance Charges a. Interest on Long-term/Capital Loans The entire capital expenditure of MSPCL since its inception has been funded by the State Government through grants from Central Government Ministries and Agencies like Ministry of Power (MoP) through schemes of NEC, NLCPR, DONER or through State Plan Scheme. Therefore, the utility does not have any liabilities on account of long-term loans.
Thus, the Commission approves Nil Interest on debt to MSPCL for FY 2021-22. Joint Electricity Regulatory Commission 81
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7.8 Interest on Working Capital ➢ As per the JERC MYT Regulations 2014, MSPCL is entitled to claim interest on working capital as per the norms provided. The Regulations state that the interest on working capital for transmission licensee shall be computed as follows: “29.2 Transmission: (i) The Transmission Licensee shall be allowed interest on the estimated level of working capital for the financial year, computed as follows: (a) Operation and maintenance expenses for one month; plus (b) Maintenance spares at one (1) per cent of the historical cost escalated at 6% from the date of commercial operation; plus (c) Receivables equivalent to one (1) month of transmission charges calculated on target availability level; minus (d) Amount, if any, held as security deposits except the security deposits held in the form of Bank Guarantee from Transmission System Users. (ii) Interest shall be allowed at a rate equal to the State Bank Advance Rate (SBAR) as on 1stApril of the financial year in which the Petition is filed.”
The interest rate is taken equal to the SBI PLR rate as on 1st April 2020 i.e., 12.90%. Thus, interest on working capital requirement for FY 2021-22 has been worked out as shown in table below.
Table 7.14: Interest on Working Capital ( Rs. Crs) Approved vide Proposed now MYT Order For Particulars for FY 2021-22 2021-22 O&M expenses 9.21 8.69 Maintenance of Spares (1%) 25.50 21.62 Receivables 9.32 8.49 Working Capital Requirement 44.03 38.81 Rate of interest* 14.05% 12.90% Interest on Working Capital 6.79 5.00 *As on 1st April of the financial year in which the Petition is filed i.e. 1st April 2020
MSPSCL requests the commission to approve the Interest on Working Capital as projected above for FY 2021-22.
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Commission’s Analysis: It is observed by the Commission that the licensee is not availing any sort of short-term loan towards working capital needs and the funding for its revenue expense like employee cost, O&M and Office expenses, the Govt of Manipur is providing the subsidy regularly in each year from 2014-15 onwards. Under these circumstances, there was no necessity for MSPCL to go for short-term borrowing or has any fund shortage noted during the past.
In view of the foregone, it is felt it to be inappropriate to allow the interest on working capital cost element merely based on the regulatory provision for which they have no amount reflected as actually spent in their annual accounts. Any such kind of charges shall not be levied on the consumers for having not spent for that purpose. Therefore, interest on working capital will only be allowed on actually having availed any such loans in future and not otherwise.
Hence, the Commission disapproves interest on working capital cost for FY 2021-22 though the MSPCL had made a projection for Rs. 5.00 Crore.
7.9 Return of Equity Petitioner’s submission ➢ As per the JERC MYT Regulations 2014, MSPCL is entitled for a Return on Equity (RoE) of 15.50% before grossing up with prevailing tax rate. The prevailing Income Tax rate (MAT) for the FY 2020-21 is of 17.16%. The same has been considered for grossing-up of return on equity for the FY 2021-22. ➢ As no fresh addition to equity during FY 2021-22 is planned, the closing equity of Rs. 10.05 Cr. for FY 2020-21 has been considered for computation of return on equity for FY 2021-22. Accordingly, return on equity is claimed at the rate of 15.50% grosses up with MAT rate of 17.16% as shown below.
Table 7.15: Proposed Return on Equity for FY 2021-22 (in Rs. Cr.) Approved vide MYT Proposed For Particulars Order For 2021-22 FY 2021-22 Opening Equity 10.05 10.05 Closing Equity 10.05 10.05 Average Equity 10.05 10.05 Rate of Return on Equity 15.50% 15.50% MAT Rate 20.39% 17.16% Total Return on Equity 1.96 1.83
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Therefore, MSPCL requests the Hon’ble Commission to approve the RoE as projected for FY 2021-22.
Commission’s Analysis: As per Regulation-26 of Tariff Regulations, return on equity shall be considered only on the paid-up equity capital. The MSPCL has stated that the paid-up equity as per opening balance sheet as on 1.2.2014 is Rs. 10.05 Crore. As such the same is considered to allow return on equity at 15.5%. The Income Tax amount would be allowed upon incidence of tax liability on actual basis during true-up. Thus, return on equity for FY 2021-22 is approved at Rs.1.56 Crore excluding Tax amount for the reason detailed above.
7.10 Non-tariff Income • Non-tariff income comprises of income earned from open access charges for short- term power purchase and sale, interest from bank deposits, agency charges, etc. • Hon’ble Commission had approved Non-Tariff Income of Rs. 8.68 Cr. for the FY 2021-22 in the MYT order Dt. 12.03.2018, however, based on the actual NTI for the FY 2019-20 & estimated for the FY 2020-21, MSPCL proposes Non-Tariff Income of Rs. 10.60 Cr. for FY 2021-22. The approved & projected NTI for the FY 2021-22 is provided below.
Table 7.16: Proposed Non-tariff Income for FY 2021-22 (in Rs. Cr.) Sl. Approved vide Revised APR No. Particulars MYT Order For 2021-22 FY 2021-22 1 SLDC Income 3.66 3.70 2 Agency Charges 3.19 2.50 3 Bank Interest 1.27 4.10 4 Other Income 0.56 0.30 5 Total Non-Tariff Income 8.68 10.60
MSPCL requests the Hon’ble Commission to kindly consider & approve the Non- Tariff Income as proposed above for the FY 2021-22. Commission analysis: The Commission felt that the estimation made by MSPCL towards Non-Tariff Income amount is fairly reasonable thereby approves the NTI at Rs.10.60 Crs for the FY 2021-22. Joint Electricity Regulatory Commission 84
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7.11 Aggregate Revenue Requirement (ARR) for FY 2021-22 Petitioner’s Submission MSPCL requests the Hon’ble Commission to approve the revised Aggregate Revenue Requirement for FY 2021-22 as shown in the table below.
Table 7.17: Proposed Aggregate Revenue Requirement for FY 2021-22 (in Rs. Cr.)
Particulars Approved vide Revised Proposed MYT Order For for FY 2021-22 2021-22 Employee Expense 77.46 87.71 R &M Expense 27.79 10.56 A&G Expense 5.30 6.00 Depreciation 1.69 1.44 Interest on Loans 0.00 0.00 Return on Equity 1.56 1.83 Interest on working capital 6.79 5.00 Income Tax 0.40 0.00 Total Cost 120.99 112.53 Less: Non-Tariff Income 8.68 10.60 Less: Expenses capitalized 5.64 0.00 Net ARR 106.67 101.93
Commission Analysis Based on approved costs the ARR of MSPCL for the FY 2021-22 is arrived at as detailed below: Table 7.18: MSPCL ARR approved by the Commission for FY 2021-22 (Rs. Cr) Sl. No. Particulars FY 2021-22 1. Employee Expense (without capitalization) 87.71 2. R & M Expense 10.56 3. A & G Expense 5.60 4. Depreciation 1.44 5. Interest on Loans - 6. Return on Capital Employed 1.56 7. Interest on working capital 0.00 8. Income Tax 0.00 9. Gross ARR 106.87 10. Less: Non-Tariff Income 10.60 11. Less: Expenses capitalized 0 12. Net approved Transmission ARR 96.27
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Commission approves ARR for FY 2021-22 at Rs.96.27 Crore as against Rs.101.93 Crs projected by MSPCL.
7.12 Transmission Tariff Petitioner’s submission Norms of Operation 1. Target availability:
As per JERC MYT regulations' 2014, the target availability proposed for MSPCL was 98% and it was proposed that transmission ARR shall be recovered on pro- rata basis if target availability is below 98%. We request the Commission to continue the same for FY 2021-22.
Transmission losses: MSPCL has submitted in the previous sections of True-up for the FY 2019-20 & APR for the FY 2020-21 that the Company is making efforts to install meters at 132 kV, 33 kV & 11 kV. It is submitted that MSPCL, as on date has already installed 47 Nos. and 125 Nos. of SEM meters with 15 minutes time block calibration at 132 kV and 33 kV voltage level respectively leaving a balance of 21 Nos. in 132 kV and 66 Nos. in 33 kV voltage level respectively for metering of 132 kV & 33 kV system.
It is further submitted that the SAMAST scheme encompasses installation of 51Nos. of meters at 132 kV, 323 Nos. of meters at 33 kV and 160 Nos. of meters at 11kV level. Tender of the implementation of SAMAST in the North Eastern region of Assam and Meghalaya states has been approved by MOP and that for the remaining states is in the process of approval by TESG under PSDF funding. Also, 33 kV system integration with SLDC and Reliable communication for grid connectivity are all in tendering stage under PSDF funding. Due to the series of lockdown following Covid-19 Pandemic, the whole process has got delayed. In view of the above, the transmission losses for the MSPCL transmission system cannot be accurately measured at this point of time.
After implementation of the aforementioned Schemes, MSPCL will be in a position to assess the actual losses as real time data would be available for the major substations and identify the loss occurring area. Accordingly, MSPCL Joint Electricity Regulatory Commission 86
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requests the Hon’ble Commission to consider the actual transmission loss after installation of meters at the feeders and approve a transmission loss trajectory accordingly. As such transmission loss of 8.895% is now approved by the Commission for FY 2021-22 after due discussion on it in SAC meeting held on 15/04/2021 and licensee would be requiring more time beyond FY2021-22 to achieve loss reduction to 8.50%.
Recovery of transmission ARR and transmission tariff proposal for FY 2021-22 1. The total ARR to be recovered for FY 2021-22 is proposed to be Rs. 101.93 Cr. As per JERC (Multi Year Tariff) Regulations, 2014, the transmission ARR should be recovered as fixed monthly charges from all long-term users of the transmission system based on the share of average contracted transmission capacity in the total transmission capacity. Also, in case the target availability is below normative availability of 98%, the transmission ARR shall be recovered on pro-rata basis. 2. Currently, MSPCL has only one long term transmission customer which is the distribution licensee i.e. MSPDCL. As such, MSPCL proposes to recover the entire transmission ARR as fixed monthly charges from MSPDCL. The proposed tariff is provided in the table below. Table 7.19: Transmission Tariff for FY 2021-22 Sl. No. Particulars Amount
Transmission ARR to be recovered (if availability is 1 equal or more than the normative availability) Rs. In 101.93 Crore Transmission Tariff for MSPDCL as Rs. Lakhs/month 2 849.44 in FY 2021-22 Average Contracted Transmission Capacity for 3 280 MSPDCL in FY 2021-22 (in MW) Transmission Tariff per MW of contracted capacity 4 for long term transmission users per Month (Rs. 3.03 Lakhs) 5 Transmission Tariff Rs./MW/Day 9974 6 Energy Proposed to be Transmitted (MUs) 1590 7 Transmission Tariff Rs./Unit 0.64
Commission’s Analysis
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Based on approved costs the transmission tariff approved by the Commission is furnished in the table below:
Table 7.20: Commission approved Transmission Tariff for FY 2021-22
Sl. Commission Particulars Unit No Approved 1 Transmission ARR to be recovered (if availability is equal to or more than Rs. Crores 96.27 normative availability of 98%) 2 Monthly Transmission Tariff amount Rs. Lakhs/ 802.25 (Payable by MSPDCL/Other network users) month 3 Transmission Capacity for FY 2021-22 MW 254.38 Rs.Lakhs/ 4 Monthly Transmission Tariff 3.154 MW/Month 5 Transmission Tariff (MW/day) Rs./MW/Day 10368.48 6 Energy approved for transmission MU 934.89 (at State level periphery) 7 Transmission Tariff per Unit Rs./kWh 1.054 Note: For the energy transmitted to MSPDCL in April 2021 month, the rate of Rs.0.76/kWh as was approved in FY2020-21 Tariff Order may be adopted for billing purpose.
Currently MSPCL has only one long term transmission consumer (viz) MSPDCL. As such MSPCL shall have to recover their entire transmission cost from MSPDCL only as fixed monthly charges as indicated, supra.
In this regard, the MSPCL shall raise and serve monthly Intra-State transmission bills every month from 1st May 2021 onwards to the MSPDCL adopting the rate of Rs.1.054/kWh basing on the actual units of energy transmitted to MSPDCL in the relevant billing month towards their revenue demand and for timely recovery in each month. As the billing is based on energy transmitted to MSPDCL, the Licensee shall submit various Interface energy metering points and their geographical locations presently in existence & usage and also other areas identified recently for installation of such interface energy meters. The license shall install reliable meters at the interface points duly approved by the both the parties.
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However, for April 2021 month billing purpose the rate to be adopted shall be at Rs.0.76/kWh which was already approved in FY 2020-21 Tariff Order for this purpose.
7.13 Rebate
As per JERC (Multi Year Tariff) Regulations, 2014, for payment of bills of transmission charges through letter of credit on presentation, a rebate of 2% shall be allowed. Where payments are made subsequently, through opening of letter of credit or otherwise, but within a period of one month of presentation of bills by the transmission licensee, a rebate of 1% shall be allowed.
7.14 Late Payment Surcharges
As per JERC (Multi Year Tariff) Regulations, 2014, in case the payment of bills of transmission charges by beneficiary/ (ies) is delayed beyond a period of one month from the date of billing, late payment surcharge at the rate of 1.25% per month shall be levied.
7.15 Incentive
As per regulation-66 of JERC for M&M (MYT) Regulations 2014 the transmission licensee shall be entitled to incentive for increase in annual availability beyond the target availability prescribed under Regulation-61, in accordance with the following formula and shall be shared by the long term and short term and medium- term customers in the ratio of their average allotted transmission capacity
Incentive = ATC × (achieved – target availability)
Target availability
Where,
ATC = Annual Transmission charges determined by the Commission for the transmission system of the transmission Licensee for the Concerned year.
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8. Directives
Directive 6: Annual investment plan shall be submitted to the Commission and necessary approval of Commission shall be obtained for all major capital works costing Rs. 5 Crore or more, before execution of the works. Compliance Status MSPCL has submitted list of all major capital works costing 5 crore or above for FY 2020-21 for approval from the Commission vide this office letter No. 26/2/ED(TECH)/ MSPCL/2014/839-40 dated 13-11-2020.
Details of all major work costing Rs. 5.00 Cr. or above for FY 2020-21 are listed below:
Schemes under State Plan for FY 2020-21
Sl. DPR amount Name of Projects/schemes No. (in Crores) Installation of 2x5MVA ,33/11 KV sub-station along with the 1 associated 33KV line and related civil works at Joujangtek, 13.06 Noney District. Installation of 2x5MVA ,33/11 KV sub-station along with the 2 associated 33KV line and related civil works at Oinam, Senapati 12.41 District. Installation of 2x5MVA ,33/11 KV sub-station along with the 3 associated 33KV line and related civil works at Gwakhal, Jiribam 8.08 District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 4 associated 33KV line and related civil works at Nampisha, 11.10 Kamjong District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 5 associated 33KV line and related civil works at Ibudhou Marjing, 9.13 Imphal East District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 6 associated 33KV line and related civil works at Chingai, Ukhrul 11.75 District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 7 associated 33KV line and related civil works at Somdal, Ukhrul 9.78 District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 8 associated 33KV line and related civil works at Akampat, Imphal 8.86 East District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 9 associated 33KV line and related civil works at Liyaikhunou, 10.83 Senapati District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 10 associated 33KV line and related civil works at Kachai, Ukhrul 10.44 District.
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Sl. DPR amount Name of Projects/schemes No. (in Crores) Installation of 2x5MVA ,33/11 KV sub-station alongwith the 11 associated 33KV line and related civil works at Sanakeithel, 10.57 Ukhrul District. Installation of 2x5MVA ,33/11 KV sub-station alongwith the 12 associated 33KV line and related civil works at Nambashi, Ukhrul 11.10 District. Installation of 2x5MVA ,33/11 KV sub-station along with the 13 associated 33KV line and related civil works at Khongjarol, 7.06 Tamenglong District. Total amount 134.17
Comment of the Commission Separate proposals shall be submitted by MSPCL for approval of Commission for the investments costing Rs 5.00 Crore and above. MSPCL has submitted investment proposals costing above Rs.5.00 Crore for FY 2020-21 for specific approval of the Commission but not before investing them. Similarly, the investment plan scheme pertaining to FY2021-22 has not been submitted by the licensee so far, which otherwise should have been submitted by now. Hence Directive is still treated as in force and due for compliance.
Directive 9: Improvement of 33 kV system. As verified from capital investment plan, huge amount is contemplated for improvement of 33 kV systems. The MSPCL is directed to plan for completion of all works well within the targeted dates. Quarterly report on progress achievement may be submitted. Compliance Status: Status/progress of 33kV system Works A. Projects Completed in the year 2019-20
Sl. No. Name of the Project 1 Installation of 2x5 MVA, 33/11 kV SS at Wangoi. 2. Installation of 2x5 MVA, 33/11 kV SS at Yairipok. 3. Augmentation of 33/11 kV S/S from 1x3.15 MVA to 2x3.15 MVA at Kangpokpi Upgradation of 33/1 kV S/S at Khoupum in Tamenglong District by installing 4 2x2.5 MVA trf. .
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B. Ongoing Projects
Sl. No. Name of the Project Execution Status 400/132 kV, 3x105 MVA Single Phase Transformer (i/c 1 90% completed. one spare) S/S at Thoubal. 2 400 KV D/C line from Yurembam to Thoubal via Nambol 95% completed. Sub Station: 90% Installation of 2x5 MVA, 33/11 kV SS at Wangjing 3 completed. (Moirang Palli) Line: 50% completed Sub Station: 95% 4 Installation of 2x5 MVA, 33/11 kV SS at Heirok completed. Line: 70% completed Sub Station: 98% Installation of 2x5 MVA, 33/11 kV SS at Lamdangmei 5 completed. (Loktak Down Stream sub-station) Line: 70% completed Sub Station: 90% Installation of 2x2.5 MVA, 33/11 KV S/S at Gumnom 6 completed. with associated 33 kV line. Line: 95% completed Sub Station: 30% Installation of 2x2.5 MVA, 33/11 kV sub-station at 7 completed. Paoyi, Ukhrul District. Line: 95% completed Sub Station: 30% Installation of 2x2.5 MVA, 33/11 kV sub-station at 8 completed. Thuyeng, Senapati District. Line: 40% completed Installation of 2x5 MVA 33/11 KV sub-station along with Completed Tender Process. 9 associated 33 kV line & related civil works at Chingai, Work order has been Ukhrul . issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 10 with associated 33 kV line & related civil works at Work order has been Kachai, Ukhrul district. issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 11 with associated 33 kV line & related civil works at Work order has been Sanakeithel, Ukhrul district. issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 12 with associated 33 kV line & related civil works at Work order has been LiyaiKhunou, Senapati district. issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 13 with associated 33 kV line & related civil works at Work order has been Nambashi, Ukhrul district. issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 14 with associated 33 kV line & related civil works at Work order has been Khongjaron, Tamenglong district. issued. Installation of 2x5 MVA, 33/11 kV sub-station along Completed Tender Process. 15 with associated 33 kV line & related civil works at Work order has been Somdal, Ukhrul District. issued.
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Sl. No. Name of the Project Execution Status Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at Joujangtek, 16 Work order has been Noneydistrict issued. Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at Oinam, Senapati 17 Work order has been district. issued. Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at Gwakhal, 18 Work order has been Jiribam district. issued. Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at Nampisha, 19 Work order has been Kamjong district issued. Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at 20 Work order has been IbudhouMarjing, Imphal West district issued. Completed Tender Process. Installation of 2x5 MVA, 33/11 kV SS at Akampat, 21 Work order has been Imphal East district issued.
Comment of the Commission The Directive is intended for submission of quarterly progress achieved report but not the one time reporting as a reply to the directive. The Quarterly progress achieved needs to be reported to the Commission to assess the pace of work. The Directive is treated as not complied with.
DIRECTIVES OF FY 2018-19 Directive 16 MSPCL is directed to complete installation and energisation of meters at all points at various voltage level to know the actual energy loss in i) Transmission at 132 kV system ii) Sub-Transmission at 33 kV system MSPCL should provide with energy meters invariably without any further delay to all 11 kV outgoing feeders being the inter-company boundary and the energy injection point to MSPDCL system, for proper energy audit and accounting in order to segregate the transmission and distribution losses in Manipur power supply system. Monthly joint meter readings should be conducted by MSPCL and MSPDCL. Compliance of Status: Reply is provided for Directive 18 and request to adopt for this directive also.
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Comments of the Commission The directive is treated as not complied with. Directs the licensee to submit the latest status report on this directive by end of May 2021. Directive 17 MSPCL is directed to submit the details of meter installation status of all feeders at all voltage levels in all sub-stations along with a single line diagram within 2 (two) months for proper monitoring. Compliance of Status: Reply is provided for Directive 18 and request to adopt for this directive also. Comments of the Commission Yet to be complied. The directive is still pending. Directs the licensee to submit the latest status report on this directive by end of May 2021.
Directives for FY 2019-20 Directive 18: Installation of Meters at 132kV and 33kV voltage levels a) The MSPCL is directed to complete the installation of all metering at the inter- company boundary point (i.e., 132kV and 33kV voltage levels) on or before August 2019 and report compliance to the Commission by the end of August 2019 positively. MSPCL shall have to record the actual losses being incurred at 132kV and 33kV level separately and submit the detailed report in the next ARR tariff petition. Compliance of Status: Directives 16, 17 and 18 have been clubbed together as they relate to installation & energisation of meters at all points at various voltage level, recording the actual losses being incurred at 132kV and 33kV level separately and submission of the detailed report. In continuation, MSPCL, as on date has already installed 47 nos. and 125 nos. of SEM meters with 15 minutes time block calibration at 132kV and 33kV voltage level respectively leaving a balance of 21 nos. in 132kV and 66 nos. in 33kV voltage level respectively for metering of 132kV & 33kV system. Now, SAMAST scheme encompasses installation of 51 nos. of meters at 132kV, 323 nos of meters at 33kV and 160 nos. of meters at 11kV level. Tender of the implementation of SAMAST in the North Eastern region of Assam and Meghalaya Joint Electricity Regulatory Commission 95
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states has been approved by MOP and that for the remaining states is in the process of approval by TESG under PSDF funding. Also, 33kV system integration with SLDC and Reliable communication for grid connectivity are all in tendering stage under PSDF funding. Due to the series of lockdown following Covid-19 Pandemic, the whole process has got delayed. After implementation of the aforementioned Schemes, MSPCL will be in a position to assess the actual losses as real time data would be available for the major substations and identify the loss occurring area. At present, as the data available is haphazard and errors are noticed with the existing pen and paper method, we are unable to arrive at the actual values.
Comments of the Commission: This directive is still treated as pending.
Directive 19: Completion of full metering of pending 11kV feeder in all 33/11kVSS MSPCL should achieve full/complete metering of 11kV feeder in all 33/11kV sub- stations by steps to install meters in the remaining feeders where meters are not yet installed in the following time-bound manner and report the compliance to the Commission soon on completion by end of December 2019. a) 11kV incoming feeder meters to the 11kV bus by June 2019 and b) Outgoing 11kV feeders by December 2019. The above directive is made with an object to accomplish to account for the quantum of power injected into the MSPDCL periphery by MSPCL which is not being done at present easily. Compliance Status: MSPCL would complete metering of all left out 11 kV feeders (160 Nos.) under SAMAST in due course and any other 11kV feeder in the new 33/11kV substations in operation as per requirement. Comments of the Commission: This directive is still pending.
Directive 20: Submission of all the Audited Annual Account from FY 2015-16 to 2017-18
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MSPCL should file in the next tariff petition with true up for 2015 – 2016, 2016 – 2017 and 2017-18 base on audited figure. Commission will no longer entertain provisional true up in the next tariff petition without the submission of the Audited annual accounts in full shape. The delay in submission of true-up will cost the Licensee to forego the entitlement to claim for additional period cost due to inflation for the true-up delay. Compliance Status: The Manipur State Power Company Limited has already finalized and audited the Accounts for the financial years 2014-15 and 2015-16. For the financial year 2016- 17, the account has already been completed and is now pending with Statutory Audit. Further the finalization of Accounts has taken time due to the imposition of Lockdown in the State during Covid-19 pandemic. However, the Accounts will be audited and finalized at the earliest despite having problems due to the Covid-19.
Comments of the Commission: The reasons for getting the audited accounts of the pending years is not convincing by imputing it for Covid-19 itself, the delay in their finalisation is inordinately delayed for plausible reasons. This directive is still pending.
Directive 21: The Licensee shall furnish the under mentioned details of feeder metering in the next ARR filing submissions to the Commission in comprehensive manner:
Details of feeders metering to be submitted A. Name of 132/33/11kV installation: ▪ No. and name of 11kV incoming feeder ▪ Name of 11kV incoming feeder provided with meter ▪ No. and name of Out-going 11kV feeder ▪ Name of 11kV Out-going feeders provided with meters ▪ No of 11kV feeders without meters B. Names of 33/11kV Sub-Stations: ▪ No. and name of 11kV incoming feeder ▪ No. and 11kV provided with meter. ▪ No. and name of 11kV outgoing feeder provided with meter. ▪ No. and name of 11kV outgoing feeder without meter.
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Compliance Status: SAMAST scheme encompasses installation of 160 nos. of meters at 11 kV level which will ensure complete metering of all 11kV feeders (including left out 72 nos. 11 kV feeders without energy meters). Tender of the implementation of SAMAST in the North Eastern region of Assam and Meghalaya states has been approved by MOP and that for the remaining states is in the process of approval by TESG under PSDF funding. After implementation of the aforementioned Schemes, MSPCL will be in a position to assess the actual losses as real time data would be available for the major substations and identify the loss occurring area. At present, as the data available is haphazard and errors are noticed with the existing pen and paper method, we are unable to arrive at the actual values.
Comments of the Commission: The detailed list of 11kV feeders with and without energy meters show that 146 nos. of outgoing 11kV feeders are metered while 72 nos. are without energy meters. Most of the substations located in plain areas are having 11kV feeders’ meters. The feeder-wise monthly energy sent out to MSPDCL can be computed from these feeders to know the distinctive losses pending complete installation of the energy meters to the balance 11kV feeders. MSPCL to submit details relating to feeder-wise energy sent out from these feeders starting from December 2019 to March 2021 latest by July 2021 to Commission.
Directive 22: Providing of Energy Meters:
It is observed from the Capital Expenditure plan for FY 2018-19, Sl No.9, out of the total capital outlay of Rs.3.71Crs, it is stated that expenditure to the tune of Rs,3.21Crs (i.e., about 87%) were already spent till the ARR filing date. Under these circumstances, Licensee needs explain why there are still lagging behind in the full-fledged metering till date.
If so, how the amount of Rs.3.21 crs was utilised for the purpose of providing energy meters. The report must be submitted to the Commission latest by the 30th June 2019 without fail with due explanation covering all issues. Joint Electricity Regulatory Commission 98
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Compliance Status: Monthly feeder wise energy data of 11 kV for all 132/33 kV, 33/11 kV substations wherever Energy meters are available and working for the Month of June, July August & September, 2020 are compiled and maintained.
Comments of the Commission: The reply provided for this directive is very vague and has not rplied to the purpose intended. MSPCL is directed to record monthly feeder wise energy sent out to the Discom immediately and compliance report is to be submitted in this May, 2021 if all the records are properly maintained.
Fresh Directives 2020-21 Directive 1: MSPCL will raise monthly intra-state transmission bill to MSPDCL and MSPDCL will make timely payment. Rebate & late payment surcharge as per rules will be applied. Compliance status: This will be discussed in the next Meeting of Co-ordination Forum. Commission comments: On the same issue which was questioned in item-8 of Additional replies for FY 2020-21, the Licensee provided a reply that “The Company is recovering the revenue regularly on timely basis” which is quiet contrary to the above reply of discussing it in Forum is very much surprising.
For the directive issued for FY 2020-21, as it appears from the reply provided for the matter is still not attended to or taken up for discussion. This is a routine matter and it is the vested right for MSPCL to collect revenue promptly and can levy late payment charges if needed. What was the new agenda, which deserves to be sorted out in Coordination Committee is not convincing the Commission and the directive is treated as not complied and it is still pending.
Directive 2: MSPCL is to submit a detail report on the subsidy received by MSPDCL from Government on behalf of MSPCL and report if any balance is still due with MSPDCL on account of the Government subsidy.
Compliance status: There is no subsidy received by MSPDCL from Government on behalf of MSPCL.
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Commission Comment: Considering the reply given by MSPCL and noting the content, the directive is treated as dropped.
Fresh Directives 2021-22
Directive No.1 The MSPCL is directed to file at least three true-up petitions in chronological sequence of those financial years which are pending for submission along with full-fledged audited Accounts before filing next tariff petition for FY 2022-23 without any further delay.
Directive No.2 Details of Interface metering points in use & new areas identified for energy availed by MSPDCL: - As the billing is based on energy transmitted to MSPDCL, the Licensee shall submit various Interface energy metering points and their geographical locations presently in existence & usage and also other areas identified recently for installation of such interface energy meters. The license shall install reliable meters at the interface points duly approved by the both the parties.
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Annexure - I MINUTES OF THE 21st MEETING OF THE STATE ADVISORY COMMITTEE OF MANIPUR
Venue: Dynasty Hall, Hotel Classic Grande, Imphal, Manipur Date & Time: 15th April 2021, 11:00 AM
Er. Lalchharliana Pachuau, Chairperson and Chairman of the Committee welcomed the Members and participants who attended the Meeting. The list of Members and Participants attending the meeting is also appended below:
Agenda 1: Confirmation on the minutes of the 20th Meeting of State Advisory Committee Meeting, Manipur held on 24.02.2020 and copy at Annexure ‘B’. After obtaining nods from the Members, the Chairman declares that the Minutes of the 20th Meeting as confirmed.
Agenda 2: Action taken report on the Minutes of the 20th Meeting of SAC, Manipur:
i) The Committee recommended that the audit of Annual Accounts of the pending years should be completed by June, 2020. The MSPCL comments that for FY 2016-17 has been completed and is now with Statutory Audit. The Company has already furnished all the information sought by Statutory Audit; and is expected to be finalized within April, 2021. For FYs 2017-18, 2018-19 and 2019-20 the Accounts have been completed and will be submitted to Statutory Audit after the Accounts of 2016-17 is finalized by Statutory Audit. The finalization of accounts has taken time due to imposition of lockdowns in the State due to covid-19 pandemic. The Company assured that the Accounts be audited and finalized at the earliest. The MSPDCL informed the committee that the Audited balance sheet for FY 2014- 15 approved by CAG is already in place and submitted to the Hon’ble Commission. Audited balance sheet for FY 2015-16 approved by CAG is in place and ready for the final True-up of 2015-16. A Chartered Accountant firm has been working on finalization of the pending Annual Accounts for FY 2016-17 and 2017-18 and the Company has hired a new Chartered Accountant firm for finalization of the pending Annual Accounts from FY 2018-19 onwards. The firms’ work is affected due to the outbreak of covid-19 pandemic and they are trying their level best to complete at the earliest. The accounts for FY 2016-17 are under audit and the Company has speed up this process and is expected to be completed by this month. For the remaining years, statutory auditors have been appointed by CAG in March, 2021 and the Company is in the process of finalizing the accounts in consultation with them. The Company is hopeful to clear all the back logs very soon. Once the same is finalized, the accounts will be presents before the Board of Directors of MSPDCL. Joint Electricity Regulatory Commission 101
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CAG audit is required under the law and will be conducted and the Company will submit the same before the Hon’ble Commission as soon as it is completed. The Chairman informed the two companies to speed up the finalization of the audited accounts as it adversely affects on the Trueing-up of the Companies and Commission may have to take the extreme cases of not further issuing of Tariff Orders, etc. as the financial health condition of the companies is not known by the Commission. And informed them to personally meet the concerned officials to speed up the process of obtaining audited accounts at the earliest. MSPCL and MSPDCL are requested to file True up petition whenever audited statement is finalised in sequential manner for the year for which the account has been completed and not to wait till the account of pending years are completed. Which was agreed by the two companies. ii) The up-to-date status of operation of franchisee system in rural areas and the modalities for billing & collection of revenue by MSPDCL.
The Company reported on this subject as the existing & upcoming status of Payment Counters for both prepaid and post-paid consumers are shown in the table below:- No. of Post-paid payment Sl. Pre-paid Payment Counters Regions MSPDCL Counter No. Divisions Existing Upcoming Existing Valley 1-Tangjeng 1 7 37 25 Regions (Kumbi SD) 2 Hill Regions 11 22 1 (Mao Tadu -bi) 22 Total 18 59 2 47
In this regard, MSPDCL has considered to implement the Rural Franchisee System with the help of Online Postpaid Billing system so as to improve its Billing and Collection Efficiency and make the distribution business commercially viable. As of now, no agency has turn up to avail the above system. To implement the Franchise model of revenue collection, the prime requirement is the on-demand availability of updated consumer bills in digital format. It is important that the history of bills and payments made are available for the public to access easily. In short, for the consumers to trust the franchise system, security, transparency and robust systems are the primary requirements that are very important. This cancels out any room for manipulation of electric bills also.
In the pursuit of digitalization of consumer data, and streamlining the billing and collection process, MSPDCL developed and went live with MSPDCL e-Pay in Aug 2019. Since inception, the billing system has been undergoing a number of changes so that CMTR 3 data can be generated accurately at the click of a button. So far, MSPDCL has been successful in bringing prepaid and postpaid consumers on the same platform i.e. billing.mspdcl.info.
Mr. Nobert Khayi, Member supplemented on this matter that franchisee was to be implemented in Ukhrul district but could not do so due to technical mismatch.
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Er. L. Pachuau, Chairman also stated that this was thought off so as to enable the Company to collect more revenues.
The Committee decided to see the proposed schemes being implemented by the Company and for review in the next meeting.
iii) MSPDCL report on the proposed submitted to the the State Government regarding subsidy payment to specific category of consumers. MSPDCL has requested to the State Government for the subsidy support of Rs 316.34 Crore based on the proposed ARR and proposed tariff for FY 2021-22.
The details to ascertain the subsidy quantum for FY 2021-22 is given below. Sl. No Particulars Units Amount 1 Net ARR Rs. Crore 871.64 2 Revenue from Existing Tariff Rs. Crore 421.68 3 Sale of Surplus Power Rs. Crore 25.08 4 Total Sales Proceeds (2+3) Rs. Crore 446.76 5 Revenue Gap(1-4) Rs. Crore 424.88 6 State Government Revenue Subsidy Rs. Crore 316.34 7 Net Un-met GAP(5-6) Rs. Crore 108.54 Revenue from sale of power at proposed 8 Rs. Crore 530.22 tariff (after tariff hike of 25.74%) (2+7) MSPDCL received the State Government sanction in this regard vide its letter no. H. 20013/34/20-JERC, dated Aizawl, the 2nd December, 2020. State Government approved the subsidy quantum without specifying the consumer category-wise subsidy. In the State of Manipur, the subsidy was approved under different budget head like power purchase cost, employee cost, A&G cost, R&M cost. So, the consumer category wise subsidy was not approved at all.
The Chairman informed the Meeting that on this issue the State Government has the final say and the Commission has to abide with it.
iv) The up-to-date status of calibrating different prepaid machines visa-vis functioning of data center at Guwahati. The MSPDCL informed the Meeting that whenever a new tariff is approved by the commission, the new tariff is updated in the database of meter manufacturers (Secure meter, HPL meter & Genus Meter). Once the new tariff is updated in the meter manufacturers’ database, the next prepaid recharge codes of all consumers will carry the updated tariff information. When this new recharge code is punched into the prepaid meter, the meter will update itself with the new tariff information. After this, consumers will be credited energy units according to the new tariff. The same process was followed to calibrate prepaid meters with the tariff for FY 2019-20. The integration of all types of prepaid meters (viz. Secure Meters, HPL Meters and Genus Meters) on a single platform (https://billing.mspdcl.info, MSPDCL ePay) has
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been completed successfully. Prepaid vending operators at the counters have also started using the same integrated platform for prepaid vending since 2nd January, 2021. Since the cost of outsourcing the web hosting services to an outsourced firm is substantially lower than the costs incurred for maintaining its own data center, MSPDCL is in the process of pulling out of the Guwahati Data center. Outsourcing the web hosting services instead of maintaining a data center also reduces the risks related to outage and calamities. However, it is to be noted that the Guwahati Data Center or the new integrated platform are not related to calibration of prepaid meters/machines.
v) Losses in Power Purchase Management, MSPDCL may give report and up-to-date status on it. a) The table below shows the allocation from different generating stations along with the fixed and Energy Charges (figs based on the latest Energy Bills). Power allocation from various Generating Stations Cost of Power Capacity and at state periphery Allocation Day Ahead Name of the power /Real time Fixed Energy Total Cost Installed State Station Surrender Cost Charges of Power Capacity Share Possibility (Rs/kWh) (Rs/kWh) (Rs/kWh) (MW) (MW) (A) (B) (C) (D)=(B+C) (E) (F) (H) Kopili HEP 0.61 0.58 1.19 200 14.50 No Khandong HEP 1.21 0.82 2.03 50 3.60 No Ranganadi HEP 1.29 1.01 2.30 405 33.91 No Kopili -II HEP 0.93 0.80 1.73 25 1.30 No Loktak HEP 1.17 1.94 3.11 105 45.10 No Palatana CCGT 1.53 1.79 3.32 726 42.00 Yes Agartala GPP CCGT 1.35 1.71 3.06 135 10.50 Yes Assam GPP CCGT 1.81 1.26 3.07 291 23.60 Yes Pare HEP 5.00 110 9.30 No Doyang HEP 2.36 2.70 5.06 75 5.90 No BgTPP Thermal 2.70 2.99 5.69 750 56.20 Yes *Baramura GTP 1.40 3.00 4.40 42 10.50 No
Note: Baramura GTP of TSECL, Tripura had recently revised the tariff with effect from Sep 2020 from Rs.3.012/kwh to Rs. 4.40/kwh as per the Generation Tariff order of Tripura Electricity Regulatory Commission (Revised bill received on April 5, 2021). MSPDCL is looking into the possibility of Surrender of the Share from the Station.
While MSPDCL is utilising the best possible ways and means to minimise the cost of power purchase, there are certain restrictions which make it difficult such as:
1. Hydel v/s thermal (Gas or Coal Based) plants: While thermal plants have the option of real time surrender / day ahead drawal limitations, hydel plants do not offer such temporary withdrawals. Also, only allocations from Central Generating Stations (CGS) can be temporarily withdrawn.
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2. Withdrawal done based on Merit Order rating: Based on the cost of power, merit order ranking is done. NTPC, BGTPP has the lowest rank in the merit order and a letter has been sent for the surrender of Unit II and III to the Ministry of Power before the time of Commercialisation of the Station. But due to non-availability of any willing buyer States, share of Unit II and III has not been deducted from Manipur.
3. Fixed Cost applicable for surrendered quantum: Even if the State surrendered the unused quantum, fixed cost of the respective Stations are still borne by the State, unless the surrendered quantum is requisitioned by another State / beneficiary. The fixed cost addition from the Station, escalates the per unit cost as the energy drawn will be lower than the normal allocations.
4. Cases of allocation of withdrawn share: To maintain the technical minimum of the Station (55% of the MCR-Maximum Continuous Rating or Installed Capacity for Coal fired Stations), withdrawn share of the costly stations such as BGTPP are being allocated back to the State.
5. Timing of Sale of Power on Energy exchange: As most of the unused power are available in the off-peak timings, price for such power on the Energy Exchange is generally lower than the price on the peak timings. Thus, sale of power during such timings generates lower revenue.
Measures undertaken for bringing down the Power Purchase cost: a) Meeting with Ministry of Power for bringing down the Power Purchase Cost of BGTPP (Bongaigaon) of NTPC: An Expert Group with dignitaries from Ministry of Power, CEA, Ministry of Coal, Railways etc have been constituted to discuss the matter of the high-Power Purchase Cost of BGTPP. A meeting on 01-03-2021 under the Chairmanship of Hon’ble Minister of State (Independent Charge) of Power and NRE to discuss the Report of Expert Group constituted to work out possible reduction in the cost of power from Bongaigaon TPP of NTPC Ltd. to North Eastern States was taken up.
In the meeting, it was decided that: 1 Reduction of Energy Charge: Coal Sources of the BGTPP plant will be optimised and shifted from BCCL and NECL to CCL with a saving of Rs. 0.57/kwh on the Energy Cost. 2 Reduction in Fixed Charge: Up to reduction of Rs.0.28/Kwh through spreading of depreciation over the useful life (from 10 years to 25 years) has been decided in the meeting. 3 Real Time Management of Power Demand and Supply with coordination of SLDC, Manipur: With the introduction of Real Time Market of the Indian Energy Exchange (IEX), buy / sell bids are monitored on a Real Time Basis and demand / supply gap of the Utility is matched more effectively as compared to previous year. Intervention required for mismatch in purchase of power at higher rate and sale of power at lower rate in Power Exchange:
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a) Introduction of Time of Day (ToD) tariff: During the peak demand of Manipur, the Market Clearing Price (MCP) of the Power Exchange is higher than the Market Clearing Price (MCP) during off peak hours. Manipur demand as on date ranges from 70 MW during off-peak and upto 250 MW during peak hours. The power purchased from the Exchange during the peak hours and sale of power during off- peak hours lead to higher purchase rate and lower sale rate.
In order to solve this issue, Time of Day (ToD) tariff where higher tariff rate during peak hours and lower tariff during off-peak hours may be implemented with suggestions and advice of the Hon’ble Commission to even out / flatten the demand / supply curve.
Curbing the State Demand during Peak Hours: Demand may be curbed during the peak hours so that higher purchase from the Power Exchange may be avoided.
vi) Increase of annual closing outstanding dues and collection of outstanding dues (vide Agenda No. 5 of previous meeting minutes): Action taken report has not been received by the Commission although it was decided in the last meeting to be submitted quarterly. MSPDCL may report up-to-date status for further deliberation. OUTSTANDING ENERGY CHARGES: MSPDCL (Manipur State Power Distribution Company Limited) acknowledges the concern that there is high risk of loss due to non-recovery of huge outstanding energy charges. In this matter, the company would like to highlight the following facts and figures that are presenting a challenge in the smooth recovery of this high outstanding dues:
STATUS OF OUTSTANDING DUES: As per the Annual Provisional Financial Statement of Manipur State Power Distribution Company Limited (MSPDCL), the total Outstanding balance of energy charges for the FY 2013-14 to FY 2020-21 is shown in the below Table-I.
Table – I (Yearwise increase in outstanding dues) (Rs. in Crores) Increase in Outstanding Present Status on Year Outstanding Dues Dues total Finalisation of Accounts (Rs.Crore)
2013-14 425.73 - Audited (Base Year) 2014-15 437.43 11.69 Audited 2015-16 446.29 8.85 Audited (Finalized data by company 24 2016-17 470.29 submitted to statutory auditor (Provl. Figure) for their observations) 2017-18 495.66 25.36 (Provl.) (Finalisation under process) (Under Internal Audit 2018-19 526.90 31.24 (Provl. Figure) process) 2019-20 567.40 40.50 (Provl. Figure) (Under Internal Audit Joint Electricity Regulatory Commission 106
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Increase in Outstanding Present Status on Year Outstanding Dues Dues total Finalisation of Accounts (Rs.Crore) process) -24.33 Provisional Figure 2020-21 543.07 (payment of Rs. 81.29 Cr. (Under Internal Audit process) by State Govt. Deptts.) The increase in the outstanding dues over the years is mainly due to huge State Government Department’s debt.
B. LEGACY DEBT (2013-14) Prior to 2014-15, there were serious issues, which were not addressed leading to accumulation of outstanding dues. The issues are as follows:
1. Erratic Power Supply during the period of 2007 to Mid-2014: Power Supply in Manipur was very erratic till mid-2014. Following the unbundling of the erstwhile Electricity Department, Government of Manipur into Manipur State Power Distribution Company Limited (MSPDCL) and Manipur State Power Company Limited (MSPCL) in February, 2014, power supply starts improving from the latter half of 2014.
During the period of starting 2007 till 2013, the actual power supply available to consumers was just about 4-5 hrs/day. Over and above this, there were instances of only alternate days of power supply in the outskirt areas of Imphal and the hill Districts of Manipur.
2. Inaccurate Billing:
a. The tariff of consumption of electricity since 2002 to 2010 was largely based on flat billing and as per the Manipur Gazette No.150 dated 16th August, 2002 (Friday) since extensive Post-Paid metering could not be done due to insufficient budgetary provision and man-power shortages.
b. As all data were entered manually there was inaccuracy in the actual sale and billing of energy. Even though post-paid meters were installed at the premises of the consumers, 50% - 60% of these meters were defective. This led to flat billing of consumers though they were metered consumers.
c. The higher rate based on the flat electrical tariff of that time coupled with the erratic power supply highly de-motivated consumers to pay their electrical dues leading to slow accumulation of outstanding dues.
3. No improvement in Power Supply till end of FY 2014-15: Joint Electricity Regulatory Commission (JERC), Manipur and Mizoram publishes the Tariff Order along with a new Tariff Structure for Manipur starting FY 2010-11 but as the power supply in the State could not be improved, collection of outstanding dues from defaulting consumers could not be effective till the later period of FY 2014- 15.
4. Irregular Distribution of Bills: Distribution of bills was also a huge issue during the period mentioned in point no. 2(a). Due to low manpower of the Electricity Dept., Bills were not prepared timely which led to non-issuance of bills in proper billing cycle. However, surcharges were always carried forward to the next billing cycle
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even though bills were not issued on time. This led to huge accumulation in the outstanding dues.
C. MEASURES TAKEN UP BY MSPDCL TO REDUCE OUTSTANDING DEBTS
1. Prepaid Metering and Surcharge Collection through Web-based billing system (billing.mspdcl.info)
Ever since the erstwhile Electricity Department, Government of Manipur was unbundled, Manipur State Power Distribution Company Limited (MSPDCL) has been vigorously installing Prepaid Meters in the premises of the consumers for revenue collection and growth. With the use of prepaid meters coupled with improved technology for consumer data indexing, Web-based billing system were implemented. After completion of 100% Prepaid/Smart/Postpaid Metering in all the premises of the consumers and after replacement of faulty meters, and upon complete migration of all consumer details into the Web-based billing system, MSPDCL may be able to recover some of the outstanding dues against defaulting consumers. To address the rise in the consumer base and its complexity in energy billing, work order for supply and installation of 2 Lakh Prepaid meters is already issued on 19th December, 2020.
1. Other measures taken up by MSPDCL
MSPDCL has been conducting raids against theft / by-passing / unauthorized use of electricity at the premises of consumers. On coming across consumers indulging in theft / by-passing / unauthorized use of electricity, either of the following three is imposed which is also in line to the Indian Electricity Act, 2003 such as:
A. The power supply to the premises of such consumer is cut off till the outstanding dues are cleared.
B. Penalty is imposed to the guilty consumer.
C. FIR is made against the guilty consumer at the nearest Police Station within 24 hrs of the raid.
MSPDCL is taking up these raids vigorously and in FY 2020-21, 8 FIRs were lodged out of the 604 theft cases. A report on the raids conducted by MSPDCL from FY 2015-16 to FY 2020-21 (upto Jan, 2021) is given below: -
Total Number of Total Number of Total no. of Total no. of Total no. of Financial cases where cases - Theft of cases where cases pending Year inspection was electricity was FIR has been settled cases (nos.) carried out (nos.) detected (nos.) lodged (nos.) (nos.) 1 2 3 4 5 6 2015-2016 10,173 976 0 844 132 2016-2017 21,007 622 372 565 57 2017-2018 27,043 920 117 742 178 2018-2019 68,230 682 31 657 25 2019-2020 2,005 461 45 297 164
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Total Number of Total Number of Total no. of Total no. of Total no. of Financial cases where cases - Theft of cases where cases pending inspection was electricity was FIR has been settled Year cases (nos.) carried out (nos.) detected (nos.) lodged (nos.) (nos.) 2020-2021 9,912 604 8 484 120 TOTAL 1,38,370 4,265 573 3,589 676
Miss H. Lalthanmawii, Member also suggested to take intervention of Lok Adalat for collection of outstanding bills from consumers. The MSPDCL can approach the Government on this issue. vii) MSPDCL may report the up-to-date status of outstanding dues of power purchase bills (vide Agenda No.6 of previous meeting minutes). 1. The upto date outstanding Power Purchase bill is given below for information of honourable SAC members.
PERIOD UNDER REPORT: - APRIL 2020 TO MARCH 2021 Outstanding Surcharge Total bill Amount Name of PSU/ Closing SL. dues as on levied during served in paid in the outstanding as Govt. No 31.03.2020 the period the period period on 31.03.2021 Undertaking (Rs. Lakh) (Rs. Lakh) (Rs. Lakh) (Rs. Lakh) (Rs. Lakh) 1 2 3 4 5 6 7 (3 to 6) A NEEPCO 3,867 397 12,018 13,297 2,986 B NTPC 2,801 410 13,771 12,647 4,335 C NHPC 627 75 5,825 3,984 2,543 D OTPC 1,589 225 9,449 8,348 2,915 E PGCIL 2,264 6,689 6,793 2,161 F TSECL / TPGL 1,253 1,149 1,506 896 G NERLDC 884 283 1,026 142 Total 13,289 1,108 49,190 47,606 15,978
2. While MSPDCL acknowledges that due to late payment of Power Purchase Bills, surcharges are incurred which ultimately increased the payment burden of MSPDCL. MSPDCL uses the following incomes / receipts from Govt. The following issues are being faced by MSPDCL in timely payment of Power Purchase Bills:
ii. Untimely receipt of Power Purchase Subsidy from State Govt.: While every effort for timely payment is done by transferring of revenue generated by MSPDCL from sale of power to MSPDCL consumers, subsidy support from the State Govt. is received late on certain occasions thus delaying the payment of bills.
iii. Lower tariff of MSPDCL compared to the tariff from Central Generating Stations: The power tariff from Central Generating Stations have recovered their revised tariff structure as and when approved by CERC by passing on supplementary bills to MSPDCL, whereas MSPDCL does not have any definite means to recover this add on cost from its consumers. This widens the gap between cost of power purchase v/s the payment of bills by MSPDCL.
3. The actual late payment surcharge after separating the surcharge cost from the principal bills of Generators such as – NEEPCO, NTPC, NHPC and OTPC is Rs. 11.08 Joint Electricity Regulatory Commission 109
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crore as on 31-03-2021. This is an added burden of MSPDCL. Unless MSPDCL is supported in generating more revenue, the surcharge issue will be a big burden. Measures such as: -
i. Prevention of Electricity theft / unaccounted energy ii. Increase in Tariff to raise the Average revenue Realisation to match the Average Cost of Supply. iii. Cost Minimisation – such as allowing MSPDCL to surrender the costly power of NTPC BGTPS Unit II and III etc.
viii) Case study of losses at 132kV level and 33kV level (vide Agenda No.7 of previous meeting minutes): The Commission prepared formats for case study of 132kV and 33kV intra-state transmission lines under MSPCL and requested to select each of 5(five) lines of 132kV level and 33kV level and submit report for the period of 3(three) months (i.e. March- May, 2020). MSPCL has not submitted their report till date even after requesting them 3(three) times to submit it. MSPCL may submit their case study report in the meeting for further deliberation.
SLDC is compiling energy meter data submitted by Sub-station divisions of MSPCL. However, accurate calculation of actual loss at various voltage levels is ineffective due to incomplete installation of energy meters and defective meters. In view of the upcoming SAMAST scheme to be taken up by NERPC, MSPCL has dropped the idea of installation of new energy meters and rectification of old ones. Tender process and supply order for implementation of SAMAST scheme is in advance stage.
Based on the limited data available at our disposal, few transmission and sub- transmission lines as well as few 132/33kV and 33/11 kV substations are identified as sample element for loss estimation for the respective voltage level. Using these sample elements, total loss of 132kV and 33kV system is estimated at 8.895 %. The estimation is based on available data of the specified elements averaged out over a period of one year (January to December 2019).
The MSPCL and MSPDCL has both stated that they need to further co-operate on this issue and that with the coming of SAMAST Projects, a better and clearer reading is expected very soon.
The chairman informed the Meeting that this is required to check the performances of the two companies and for checking the loop holes which will result in a dynamic and prosperous companies.
Both MSPCL and MSPDCL agreed to adopt intra-state transmission loss as 8.895% which included the losses at 33kV level and 132 kV level till new result of proper case study or till system metering is achieved. And the SAC agreed to it.
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Agenda 3: Determination of ARR & Retail Tariff of MSPDCL for FY 2021-22 and ARR & Transmission Tariff of MSPCL for FY 2021-22. As required by Sections 61, 62 and 64 of the Electricity Act, 2003 and as per the Multi Year Tariff (MYT) Regulations, the Manipur State Power Distribution Company limited (MSPDCL) has filed recently the revised ARR & Tariff Petition for the FY 2021-22 with the Commission and the same is now under vetting. Executive summary of the Petition has also been published in local newspapers for information of general public. The basic data required for the determination of ARR and Retail Tariff are to be furnished by the MSPDCL in the form of a Petition as per the MYT Regulations, 2014. The Petition should have among others, three basic inputs namely actuals of last year, provisional of current year and projections for the ensuing year i.e. the year for which Tariff is required to be determined. These data has been compared with each other and checked for consistency and symmetry. The Commission finds it very difficult to proceed if data are incomplete or missing or inconsistent or the reasonability is not established. The Commission then calls for clarification or additional data from the petitioner. Thus, the Commission does a lot of analysis and data processing before the ARR is approved and corresponding Retail Tariff is determined. While doing the exercise, the Commission also keeps as eye on the following provision under Section 61 of the Electricity Act, 2003, namely: 61 (c) The factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments. (d) Safeguarding of consumers’ interest and at the same time, recovery of the cost of electricity in a reasonable manner. (e) The Principles rewarding efficiency in performance (g) The Tariff progressively reflects the cost of supply of electricity (i) The National Electricity Policy and Tariff Policy
The Manipur State Power Company limited (MSPCL) also, as required by the Act and MYT Regulations mentioned above, filed revised ARR and Transmission Tariff for the FY 2021-22 which is also under vetting. As per the above mentioned MYT Tariff Regulations, 2014, the Transmission ARR shall be recoverable as fixed monthly charges from all users of long-term transmission customers, based on share of transmission capacity in the total transmission capacity.
Currently, MSPCL has only one long term transmission customer which is the Distribution Licensee in Manipur. As such, MSPCL has to recover the entire transmission ARR as fixed monthly charges from MSPDCL.
Determination of ARR and Retail Tariff of MSPDCL for FY 2021-22
1. MSPDCL, a deemed licensee engaged in the distribution and retail supply of electricity in Manipur State, has filed before the JERC (M&M), Aizawl, the Aggregate Revenue Requirement (ARR) and Tariff application for FY 2021-22 for Joint Electricity Regulatory Commission 111
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distribution and retail supply of electricity before JERC for M&M under section 62 of the Electricity Act, 2003 and as per the MYT Regulations, 2014 notified by the JERC (M&M) on 2nd February, 2021.
The Hon’ble Commission admitted the Petition of MSPDCL and registered the Petition vide Petition (ARR & Tariff) No. 3 of 2021.
The summary of ARR for FY 2021-22 is tabulated below in detail: (Rs. Crores) Sl. No. Particulars Amount As % to Total A Expenditure Rs.Crs (%) 1 Cost of power purchase 491.63 56.40% 2 Inter-State Transmission charges 83.06 9.53% 3 Intra-state Transmission charges 101.93 11.69% 4 SLDC & NERLDC Charges 1.52 0.17% 5 O&M Expenses 145.97 16.75% Employee Expenses 116.43 13.36% Repair & Maintenance Expenses 19.44 2.23% Administrative & General Expenses 10.10 1.16% 6 Depreciation 4.80 0.55% 7 Interest on Loan 36.27 4.16% 8 Interest on Working Capital 8.31 0.95% 9 Provision for bad debts 3.00 0.34% Sub-total of (A) 876.49 100.56% B Add: Return on Equity 1.95 0.22% Add: Income Tax - 0.00% Sub-total of (B) 1.95 0.22% C Gross ARR: C = (A+B) 878.44 100.78% D Less (Non-Tariff Income) 6.80 0.78% Sub-total of (D) 6.80 0.78% E Net Aggregate Revenue Requirement (C-D) 871.64 100.00% F Revenue from sale of Power (F) = (a + b) 446.76 a) Retail Sales Revenue at Existing Tariff 421.68 b) Outside State Sales Revenue 25.08 G Revenue Gap / Subsidy proposed (E – F) 424.88
2. Distribution loss: The distribution loss for FY 2021-22 has been projected at 21.05%. 3. MSPDCL proposed to cover the revenue shortfall partially through additional revenue of Rs.108.54 crs from proposed Tariff revision and thereby leaving a gap of Rs. 316.34 Crs for State Government Revenue subsidy consideration. Without With Sl.No Particulars Units subsidy subsidy 1 Net ARR Rs. Crore 871.64 871.64 2 Revenue from Existing Tariff Rs. Crore 421.68 421.68
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3 Sale of Surplus Power Rs. Crore 25.08 25.08 4 Total Sales Proceeds Rs. Crore 446.76 446.76 5 Revenue Gap Rs. Crore 424.88 424.88 6 State Government Revenue Subsidy Rs. Crore 316.34 7 Net Un-met GAP Rs. Crore 424.88 108.54 8 Revenue from sale of power at Rs. Crore 846.56 530.22 proposed tariff 9 Unit revenue realisation at the Rs. / kWh 12.66 7.93 proposed Tariff 10 Average Tariff hike required (7/2) x100 % 100.76% 25.74%
4. The existing Tariff & the proposed Category-wise Retail Supply Tariffs for FY 2021- 22 is given below: - Existing Tariff Proposed Tariff % increase in Sl. Category Fixed Energy Fixed Energy Fixed Energy No. Charge Charge Charge Charge Charge Charge L.T Supply (Rs./Month) (Rs/kWh) (Rs./Month) (Rs/kWh) (%) (%) 1 Kutir Jyothi All units (15 i) 25 2.00 25 2.00 0.00% 0.00% kWh/month) 2 Domestic 0-100 i) 60 4.20 65 5.80 8.33% 38.10% kWh/month 101-200 ii) 60 5.50 65 7.10 8.33% 29.09% kWh/month Above 200 iii) 60 6.40 65 8.20 8.33% 28.13% kWh/month 3 Commercial 1-100 i) 80 5.85 85 7.80 6.25% 33.33% kWh/month 101-200 ii) 80 6.90 85 8.90 6.25% 28.99% kWh/month Above 200 iii) 80 7.45 85 9.30 6.25% 24.83% kWh/month Public 4 65 8.50 70 8.70 7.69% 2.35% Lighting Public Water 5 100 8.70 105 8.90 5.00% 2.30% works Irrigation & 6 60 4.20 65 5.20 8.33% 23.81% Agriculture Small 7 65 4.40 70 5.80 7.69% 31.82% Industry Rs./kVA/ Rs./kVAh/ Rs./kVA/ Rs./kVAh/ H.T Supply (%) (%) month Month month Month 8 Commercial 100 8.10 105 9.60 5.00% 18.52% Public Water 9 100 8.30 105 8.50 5.00% 2.41% works 10 Irrigation & 100 4.40 105 4.60 5.00% 4.55%
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Existing Tariff Proposed Tariff % increase in Sl. Category Fixed Energy Fixed Energy Fixed Energy No. Charge Charge Charge Charge Charge Charge Agriculture Medium 11 100 5.70 105 7.00 5.00% 22.81% Industry Large 12 100 7.10 105 8.50 5.00% 19.72% Industry 13 Bulk Supply 100 6.40 105 7.90 5.00% 23.44%
Summary of Existing and Proposed Wheeling charges for FY 2021-22 Sl. At existing At proposed Particulars Units No. Tariff Tariff 1 ARR for Wires Business Rs. Crs 82.57 131.27 2 Energy available at Distribution periphery MU 863.46 846.68 3 Wheeling Charges Rs./kWh 0.956 1.55
After explanations on both the petitions by MSPDCL and MSPCL, an in-depth discussion was held.
Mr. S. Rishikumar Singh, Member stated that the tariff petition of MSPDCL proposals hike on irrigation and small industries is too high and to develop this crucial areas, lower tariff may be given to them.
Er. L. Manglem Singh, Member also stated that with changing development we need to forecast on areas of Power Managements including Tariffs like electric vehicles etc. The Meeting agreed that a nominal hike in tariffs was agreed but not to cause burden to the consumers.
The Meeting ended at 2:15 pm with a vote of thanks from the chair.
Sd/- LALCHHARLIANA PACHUAU Chairperson
Memo No. H. 11019/26/18-JERC/67 : Dated Aizawl, the 23rd April, 2021
Copy to: 1. Secretary to Hon’ble Chief Minister, Govt. of Manipur for kind information to the Hon’ble Chief Minister. 2. P.S. to Hon’ble Power Minister Govt. of Manipur for kind information to the Hon’ble Power Minister. 3. Secretary, Power Department, Govt. of Manipur for kind information and for taking necessary action on the Minutes of the Meeting. 4. All Members / Invitees of the State Advisory Committee for kind information and for taking necessary action on the Minutes of the Meeting. 5. Guard file.
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List of Members and Participants attended the 21st Meeting of State Advisory Committee of Manipur
Date & Time : 15th April, 2021 (Thursday) 11:00 a.m. Venue : Hotel Classic Grande, Dynasty Hall, Imphal.
Sl.No. Participant Name Designation & Organisation MEMBERS 1 Er. LalchharlianaPachuau Chairperson, JERC (M&M) 2 Mr. L.Manglem Singh Director, MANIREDA, Imphal, Manipur 3 Mr. T. Panmei Joint Director, Agriculture Department 4 Mr. Nobert Khayi Social Worker, West Phungreitang, Ukhrul 5 Mr. Rishikumar Singh President, All Manipur Entrepreneurs Association 6 Mr. M. Brojen Singh Kakchingwairi ThongamLeikai, Manipur 7 Dr. S. Birendra Singh Rtd Director, NIT Imphal, Nambol Bazar, Bishnupur 8 Miss H.Lalthomawi Advocate, Tipaimukh Road, HiangtamLamka, Manipur SPECIAL INVITEES 1 Mr. Ng. Subash Singh Managing Director, MSPDCL 2 Mr. Th. Aton Singh ED/Comml, MSPDCL 3 Mr. N. Sarat Singh Managing Director, MSPCL 4 Er. H.Thanthianga Assistant Chief (Engineering), JERC (M&M) 4 Mr. Richard Zothankima Assistant Secretary, JERC (M&M) 5 Mr. H. Shanti kumar ED(Tech), MSPCL & MSPDCL 6 Miss Khoisnam Steela DGM (Commercial) SLDC, MSPCL 7 Miss Laishram Ritu DGM (Sys. Opt), SLDC, MSPCL 8 Mr. Satadru Chakraborty Consultant, MSPDCL 9 Mr. Hijam Romen Manager, MSPDCL 10 Mr. Mutum Binod AM – IT, MSPDCL 11 Mr. Abdul Hamid DM Prepaid, MSPDCL 12 Mr. Bikram Sharma DM (IT) 13 Mr. N. Khagemba GM (F&A) 14 Mr. Th. Satyajit Singh DM (Power Purchase) MSPDCL 15 Mr. M. Rabi Singh GM Commercial 16 Mr. O. Kartik Singh GM (Circle No. 1) 17 Mr. Ch. Rajbabu Singh GM Circle No. III 18 Mr. S. Priyananda Singh GM (T)/MSPCL 19 Mr. Ranjan Wahengbam Manager 20 Mr. Madha Dalal Consultant of MSPCL 21 Miss I. Roji DM (Elect) 22 Miss M. Ashalata DGM(Tech) 23 Mr. MurtmaIjhar Sheikh DM (Elect) 24 Mr. N. Jasobanth Singh DGM, MSPCL 25 Mr. H. Debeswar Singh DGM, MSPCL 26 Mr. A. Robin Singh DGM, MSPCL 27 Mr. Satyabrata Singh DGM, MSPCL 28 Mr. Kh. Umakanta Singh Dy. Manager, MSPCL 29 Mr. B. Ibomcha Singh GM – EC -II 30 Mrs. N. Ashapurna C.C.O, JERC (M&M)
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Annexure - II
LIST OF PERSONS WHO ATTENDED PUBLIC HEARING ON MULTI YEAR ARR & TARIFF PETITION FOR FY 2021-22 IN RESPECT OF MSPCL, MANIPUR
Venue : Hotel Classic Grande, Dynasty Hall, Imphal, Manipur. Date & Time: 16th April, 2021 (Friday) at 1:30 PM.
Sl. No. PARTICIPANT NAME DESIGNATION / PROFESSION 1 Mr. LALCHHARLIANA PACHUAU Chairperson, JERC (M&M) 2 Mr. H. SHANTIKUMAR SINGH Executive Director (Tech), MSPCL 3 Mr. H. THANTHIANGA Asst. Chief (Engg.), JERC (M&M) 4 Mr. RICHARD ZOTHANKIMA Asst. Secy., JERC (M&M) 5 Mr. K. HARI PRASAD Consultant, JERC (M&M) 6 Mr. TH. ATON SINGH E.D., Commercial, MSPDCL 7 Ms. HANNA RANGNAMEI Manager, SLDC 8 Ms. KHOISNAM STEELA D.G.M. (Commercial), SLDC 9 Ms. LAISHRAM RITU D.G.M. (S.O.), Commercial 10 Mr. S. PRIYANANDA SINGH G.M. (T), MSPCL 11 Mr. H. DEBOSHRY SINGH D.G.M. (T), MSPCL 12 Mr. A. SATYABRATA SINGH D.G.M., MSPCL 13 Mr. O. KARTIK SINGH G.M., MSPDCL 14 Mr. KH. UMAKANTA SINGH Dy. Manager, MSPCL 15 Mr. RANJAN WAHENGBAM Manager, MSPCL 16 Mr. I. ROJI D.M., MSPCL 17 Ms. M. ASHALATA D.G.M. (Tech) 18 Mr. MURTMA IGHAR SHEIK D.M. (Elect), MSPCL 19 Mr. MADHU DALAL Consultant, MSPCL 20 Ms. N. ASHAPURNA Clerk-cum-Operator, JERC (M&M)
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JOINT ELECTRICITY REGULATORY COMMISSION FOR MANIPUR AND MIZORAM TBL Bhawan, 2nd to 5th Floor, Peter Street, E-18, Khatla, Aizawl, Mizoram, 796001 Website: www.jerc.mizoram.gov.in e-mail: [email protected] Ph: 0389 2336555/2335625 Fax: 0389-2336299/2335523
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