UTTARAKHAND POWER CORPORATION LIMITED
TARIFF PETITION FOR FY 2015-16 AND TRUE-UP FOR FY 2013-14
SUBMITTED TO: UTTARAKHAND ELECTRICITY REGULATORY COMMISSION
Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
TABLE OF CONTENTS A1: INTRODUCTION ...... 6 A2: PAST ADJUSTMENT ...... 8 A3: PROVISIONAL TRUE-UP FOR FY 2013-14 ...... 9 POWER PURCHASE EXPENSES ...... 9 OPERATION AND MAINTENANCE EXPENSES ...... 11 INTEREST AND FINANCE CHARGES ...... 14 DEPRECIATION...... 16 INTEREST ON WORKING CAPITAL...... 16 REVENUE FROM TARIFF AND DISTRIBUTION LOSSES ...... 18 COLLECTION EFFICIENCY ...... 20 PROVISION FOR BAD AND DOUBTFUL DEBTS...... 20 NON-TARIFF INCOME (NTI) ...... 20 SHARING OF GAINS AND LOSSES ...... 21 ARR AND REVENUE FOR FY 2013-14 ...... 22 A4: ANNUAL REVENUE REQUIREMENT AND DETERMINATION OF TARIFF FOR FY 2015- 16 24 Energy Sales Forecast ...... 24 Projection of Energy Sales - comparing multiple methodologies...... 25 Energy Sales - From Draft 18th Electric Power Survey Projections ...... 25 Projection of Energy Sales - Adjusted Trend Analysis (CAGR) Method ...... 26 Projection of Connected Load and Number of Consumers ...... 29 DISTRIBUTION LOSS TRAJECTORY ...... 30 COLLECTION EFFICIENCY ...... 31 POWER PROCUREMENT PLAN ...... 32 Procurement of Power and Uttarakhand’s Allocated Share ...... 32 Broad Approach for Projecting Power Availability ...... 33 Availability from UJVNL Stations ...... 33 Availability from NTPC Stations ...... 34 Availability from NHPC Stations ...... 35 Availability from THDC Stations ...... 35 Availability from SJVNL Stations...... 36 Availability from NPCIL Stations ...... 36 Availability from Vishnu Prayag Hydro Electric Project ...... 37 Availability from Independent Power Producers (IPP) Stations ...... 37 New stations ...... 38 Transmission losses ...... 39 PROCUREMENT OF DEFICIT POWER AND ADJUSTMENT OF SURPLUS POWER ...... 41 PROJECTION OF POWER PURCHASE COST ...... 41 Cost of Power from UJVNL stations ...... 41 Cost of power from NHPC Stations ...... 41 Cost of power from NPCIL Stations ...... 42 Cost of power from THDC Stations ...... 42 Cost of power from SJVNL Stations ...... 42 Cost of power procured from IPPs, Private Projects ...... 43 Cost of State royalty power ...... 43 Cost of power from New stations ...... 43 Cost of power from short-term sources ...... 43 Total Power purchase Cost for FY 2015-16...... 44 Inter-state and Intra-state Transmission Charges...... 46 CAPITAL EXPENDITURE PLAN ...... 46 Proposed Capital expenditure and Capitalization ...... 47 INTEREST ON LOAN CAPITAL ...... 48 INTEREST ON CONSUMER SECURITY DEPOSIT ...... 49 RETURN ON EQUITY ...... 49 OPERATION AND MAINTENANCE EXPENSES ...... 50 Projection of Employee Costs (EMPn) ...... 50 Projection of Administrative and General Expenses (A&Gn) ...... 52 2 | P a g e
Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
Projection of Repair and Maintenance Expenses (R&Mn) ...... 53 Total Operation and Maintenance Expenses ...... 53 PROVISION FOR BAD DEBTS ...... 54 DEPRECIATION...... 54 INTEREST ON WORKING CAPITAL...... 55 NON-TARIFF INCOME ...... 55 LIABILITY TOWARDS UJVNL...... 56 ANNUAL REVENUE REQUIREMENT FOR FY 2015-16 ...... 56 A5: REVENUE PROJECTIONS ...... 58 REVENUE AT EXISTING TARIFF ...... 58 A6: REVENUE GAP ...... 59 REVENUE GAP FOR FY 2015-16 AT EXISTING TARIFF ...... 59 REVENUE AT PROPOSED TARIFF IN FY 2015-16 ...... 59 A7: TARIFF PROPOSAL ...... 61 A8: PROPOSED RATE SCHEDULE FOR FY 2015-16 ...... 65 SCHEDULE OF PROPOSED MISCELLANEOUS CHARGES ...... 92 A9: PRAYER ...... 93 A10: COMPLIANCE TO DIRECTIVES ...... 94 COMPLIANCE STATUS OF THE DIRECTIONS ISSUED BY HON’BLE UTTARAKHAND ELECTRICITY REGULATORY COMMISSION IN ITS TARIFF ORDER DATED 10-04-2014 ...... 95
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LIST OF TABLES
TABLE 1: RATE OF STATE ROYALTY POWER FOR FY 2013-14 ...... 9 TABLE 2: ACTUAL POWER PURCHASE EXPENSES FOR FY 2013-14 ...... 10 TABLE 3: VARIATION IN THE POWER PURCHASE COST FOR FY 2013-14(RS CR) ...... 10 TABLE 4: REVISED EMPLOYEE EXPENSE TRAJECTORY FOR MYT CONTROL PERIOD (RS CR) ...... 12 TABLE 5: EMPLOYEE EXPENSES FOR FY 2013-14 (RS CR) ...... 13 TABLE 6: A&G EXPENSES FOR FY 2013-14 (RS CR) ...... 13 TABLE 7: R&M EXPENSES FOR FY 2013-14 (RS CR) ...... 13 TABLE 8: OPERATION AND MAINTENANCE EXPENSES FOR FY 2013-14 (RS CR) ...... 14 TABLE 9: INTEREST EXPENSES FOR FY 2013-14 (RS CR) ...... 14 TABLE 10: RECONCILIATION OF INTEREST EXPENSES FOR FY 2013-14 (RS CR) ...... 15 TABLE 11: VARIATION IN THE INTEREST EXPENSES FOR FY 2013-14 (RS CR) ...... 16 TABLE 12: DEPRECIATION FOR FY 2013-14 (RS CR) ...... 16 TABLE 13: VARIATION IN THE DEPRECIATION FOR FY 2013-14 (RS CR) ...... 16 TABLE 14: INTEREST ON WORKING CAPITAL (IN RS CR) ...... 16 TABLE 15: VARIATION IN THE INTEREST ON WORKING CAPITAL FOR FY 2013-14 (RS CR) ...... 17 TABLE 16: FUNDING OF CAPITALISED AMOUNT (RS CR) ...... 17 TABLE 17: FUNDING PATTERN OF CAPITALISED AMOUNT ...... 17 TABLE 18: COMPUTATION OF RETURN ON EQUITY FOR FY 2013-14 (RS CR) ...... 18 TABLE 19: RETURN ON EQUITY FOR FY 2013-14 (RS CR) ...... 18 TABLE 20: DISTRIBUTION AND AT&C LOSSES REDUCTION OVER LAST 5 YEARS ...... 19 TABLE 21: REVENUE LOSS DUE TO HIGHER DISTRIBUTION LOSSES FOR FY 2013-14 ...... 19 TABLE 22: RETURN FROM SALE OF POWER FOR FY 2013-14 (RS CR) ...... 20 TABLE 23: VARIATION IN THE NON-TARIFF INCOME FOR FY 2013-14 (RS CR)...... 21 TABLE 24: SHARING OF GAINS AND LOSSES (RS CR) ...... 22 TABLE 25: PROVISIONAL TRUE-UP OF FY 2013-14 (RS CR) ...... 22 TABLE 26: ACTUAL ENERGY SALES FOR CONSUMER CATEGORIES DURING FY 2006-07 TO FY 2013-14 (MU)..... 24 TABLE 27: SALES FORECAST FROM DRAFT 18TH EPS...... 25 TABLE 28: CAGR CALCULATED FOR ENERGY SALES TO EACH CONSUMER CATEGORY ...... 26 TABLE 29: ENERGY SALES (MU) FOR FY 2013-14, FY 2014-15 AND FY 2015-16 ...... 27 TABLE 30: SLAB-WISE MONTHLY ENERGY SALES PROJECTIONS FOR FY 2015-16 (MU) ...... 28 TABLE 31: CONNECTED LOAD (KW) FOR FY 2013-14, FY 2014-15 AND FY 2015-16 ...... 29 TABLE 32: PROJECTED NUMBER OF CONSUMERS FOR FY 2013-14, FY 2014-15 TO FY 2015-16 ...... 30 TABLE 33: DISTRIBUTION LOSS FOR FY 2013-14 TO FY 2015-16 ...... 31 TABLE 34: COLLECTION EFFICIENCY FOR FY 2013-14 TO FY 2015-16 ...... 32 TABLE 35: PROJECTED AVAILABILITY FROM UJVNL STATIONS (MU) ...... 33 TABLE 36: PROJECTED AVAILABILITY FROM NTPC STATIONS (MU) ...... 34 TABLE 37: PROJECTED AVAILABILITY FROM NHPC STATIONS (MU) ...... 35 TABLE 38: PROJECTED AVAILABILITY FROM THDC STATIONS (MU) ...... 36 TABLE 39: PROJECTED AVAILABILITY FROM SJVNL STATIONS (MU) ...... 36 TABLE 40: PROJECTED AVAILABILITY FROM NPCIL STATIONS (MU) ...... 36 TABLE 41: PROJECTED AVAILABILITY FROM VISHNUPRAYAG HEP (MU) ...... 37 TABLE 42: PROJECTED AVAILABILITY FROM IPP STATIONS (MU)...... 37 TABLE 43: PLF & AUXILIARY CONSUMPTION FOR UPCOMING STATIONS ...... 38 TABLE 44: PROJECTED AVAILABILITY FOR UPCOMING STATIONS ...... 38 TABLE 45: RATE OF STATE ROYALTY POWER (RS/KWH) ...... 43 TABLE 46: PROJECTION OF POWER PURCHASE COST FOR FY 2015-16 ...... 44 TABLE 47: CAPITAL EXPENDITURE TO BE INCURRED DURING THE YEAR (RS CR)...... 47 TABLE 48: CAPEX AND CAPITALISATION (IN RS CR) ...... 48 TABLE 49: TOTAL CAPITAL EXPENDITURE AND FINANCING PLAN ...... 48 TABLE 50: PROJECTED INTEREST EXPENSES (RS CR) ...... 49 TABLE 51: INTEREST ON CONSUMER SECURITY DEPOSIT (RS.CR) ...... 49 TABLE 52: PROJECTED RETURN ON EQUITY (RS.CR) ...... 50 TABLE 53: PROJECTED EMPLOYEE COSTS (RS CR) FOR FY 2013-14, FY 2014-15 AND FY 2015-16 TAKING FY 2012- 13 AS BASE EXPENSES ...... 52 TABLE 54: PROJECTED A&G EXPENSES (RS CR) FOR FY 2014-15 AND FY 2015-16 (IN RS CR) ...... 52 4 | P a g e
Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
TABLE 55: PROJECTED R&M EXPENSES (RS CR) FOR FY 2014-15 AND FY 2015-16 (IN RS CR) ...... 53 TABLE 56: TOTAL OPERATING AND MAINTENANCE EXPENSES (RS CR) FOR FY 2014-15 AND FY 2015-16 ...... 53 TABLE 57: PROVISION FOR BAD DEBTS (RS. CR) ...... 54 TABLE 58: DEPRECIATION (RS. CR) ...... 54 TABLE 59: PROJECTED INTEREST ON WORKING CAPITAL (RS. CR) ...... 55 TABLE 60: PROJECTED NTI (RS. CR) ...... 56 TABLE 61: ARR FOR FY 15-16 (RS. CR)...... 56 TABLE 62: CATEGORY-WISE AVERAGE TARIFF & FORECAST REVENUE FOR FY 2015-16 AT EXISTING TARIFF RATE ...... 58 TABLE 63: REVENUE GAP FOR FY 2014-15 (RS. CR) ...... 59 TABLE 64: SUMMARY OF GAP TO BE RECOVERED IN FY 2015-16(RS CR) ...... 59 TABLE 65: PROJECTED REVENUES FOR FY 2015-16 AT PROPOSED TARIFFS ...... 60 TABLE 66: CATEGORY-WISE AND SLAB-WISE EXISTING TARIFF VIS-A-VIS PROPOSED TARIFF ...... 61
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Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
A1: INTRODUCTION
1.1 Uttarakhand Power Corporation Limited, hereinafter referred to as “the Petitioner” or “UPCL” respectfully submits to the Hon’ble Commission as under:
1.2 Uttarakhand Power Corporation Limited (UPCL) was established under the Companies Act, 1956, on February 12, 2001. UPCL was entrusted with the business of transmission and distribution in the State of Uttarakhand, and all activities pertaining to transmission, distribution and supply of electricity in the State were transferred to UPCL from November 9, 2001.
1.3 The State Government subsequently created a new company - Power Transmission Corporation of Uttarakhand Limited (PTCUL) to undertake the business of transmission within the State, with effect from June 1, 2004.
1.4 GoU (Government of Uttarakhand) approved the transfer scheme of assets and liabilities on April 27, 2012 executed between the Petitioner and UPPCL on October 12, 2003.
1.5 The Petitioner submitted the Business Plan and MYT Petition for the Control Period (FY14-FY16) on December 20, 2012 as per UERC (Terms and Conditions for determination of Tariff) Regulations, 2011 notified on December 19, 2011.
1.6 The Commission issued the Tariff Order on Approval of Business Plan and Multi Year Tariff Petition for the First Control Period (FY 2013-14 to FY 2015-16) dated May 6, 2013.
1.7 The Petitioner aggrieved by various observations and disallowances by UERC filed an appeal before Hon’ble Appellate Tribunal of Electricity (ATE). The various points of contention are:
a) Inclusion of entire rebate in non-tariff income
b) Non-consideration of financing cost on LPSC
c) Fixation of unachievable and unrealistic distribution loss trajectory
d) Lower rate of interest on working capital
e) Incorrect calculation of working capital
f) Disallowance of past adjustment
g) Incorrect projection of energy sale forecast for industrial category
h) Typographical error while approving power purchase cost
i) Revenue at existing tariff
j) True-up of distribution losses
1.8 The matter is sub-judice in the higher court of law. 6 | P a g e
Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
1.9 The provisions of Section 64 of the Electricity Act, 2003 require the distribution licensee to file with the appropriate Commission, an application for determination of tariff. In accordance with the above, the Petitioner respectfully submits this application for true-up of FY 2013-14 along with the Tariff Petition for FY 2015-16.
1.10 This Petition also includes the tariffs proposed for different categories of consumers for the FY 2015-16.
1.11 The present petition has been prepared in accordance with the following Acts, Policies and regulations issued by the Hon’ble Commission
a) Electricity Act 2003;
b) Provisions of National Electricity Policy
c) Provisions of National Tariff Policy
d) UERC (Terms and Conditions for determination of Distribution Tariff) Regulations, 2004
e) UERC (Terms and Conditions for Truing Up of Tariff) Regulations, 2008
f) UERC (Terms and Conditions for Determination of Tariff) Regulations, 2011 (hereinafter referred to as “MYT Regulations”, 2011)
1.12 The Petitioner prays that the Hon’ble Commission may :
a) Admit the accompanying Tariff Petition.
b) Approve true-up of expenses and revenue for FY 2013-14 based on the provisional accounts of the said year
c) Approve various controllable and uncontrollable parameters in ARR for FY 2015-16.
d) Approve the change (increase) in retail tariffs as proposed
e) Approve the terms and conditions of tariffs and various matters as proposed in the Petition
f) Pass suitable orders for implementation of the tariff proposals for FY 2015-16 for making it applicable from April 1, 2015 onwards
g) Condone any inadvertent omissions/errors/shortcomings and permit Petitioner to add/change/modify/alter this filing and make further submissions as may be required at future date
h) Pass orders, as the Hon’ble Commission may deem fit and proper keeping in view the facts and circumstances of the case.
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A2: PAST ADJUSTMENT
2.1 The Petitioner along with the MYT Petition for determination of tariff of FY 2013-14 including true-up for FY 2010-11 and FY 2011-12, had also filed for approval of past adjustments, inter-alia, considering the value of assets and liabilities as per transfer scheme executed by UPPCL & UPCL and approved by GoU.
2.2 The Petitioner in its MYT Petition, 2013 had submitted the impact of transfer scheme along with the carrying cost up till FY 2012-13 amounting to Rs 1581.24 Cr
2.3 The Commission its MYT Order, 2013 dated May 6, 2013 has not considered finalisation of transfer scheme as the same required a notification under the reorganisation Act. The relevant extracts of the Tariff Order is reiterated below:
“Further, the Petitioner has submitted a letter from Secretary (Energy), GoU addressed to MD, UPCL informing him that the transfer scheme is being approved with the condition that that UPCL would carry out all the necessary legal as well as administrative formalities. Hence, this letter cannot be considered as finalization of the transfer scheme which requires notification under the Reorganization Act. Accordingly, the Commission is of the view that in the absence of finalization of transfer scheme, it will not be appropriate to carry out the final truing up of previous years for depreciation as well as return on capital base and return on equity as suggested by the Petitioner. Further, the Petitioner is also directed to submit its response on the observations made by the Commission not only in this Tariff Order but also in its previous Tariff Orders with regard to the Transfer Scheme. The Commission is of the view that this inordinate delay towards finalization of the Transfer Scheme despite repeated directives is not acceptable in the best interest of the consumers of the State.”
2.4 The Petitioner would like to submit that from the perusal of the Reorganization Act, there is no requirement to notify the Transfer Scheme or order issued by Central Government under Section 63 of the Reorganization Act.
2.5 Aggrieved by the said order, the Petitioner has filed an appeal before Hon’ble Appellate Tribunal of Electricity (ATE) to decide suitably on the said issue.
2.6 The Petitioner would like to submit that the Hon’ble UPERC in its order dated 21.05.2013 while truing up for the FY 2000-01 to 2007-08 has considered the GFA transferred to Petitioner as Rs 1058.18 Cr, which is also the same amount as agreed between UPPCL and Petitioner in the transfer scheme.
2.7 Since, the matter is pending in the higher court of law therefore; the Petitioner is not filing for the claim in the present Petition.
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Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
A3: PROVISIONAL TRUE-UP FOR FY 2013-14
3.1 Hon’ble Commission vide its MYT Order dated May 06, 2013 had determined the expenses and revenue of the Petitioner for FY 2013-14 based on the UERC (Terms and Conditions for determination of tariff) Regulations, 2011 (herein after referred as UERC Tariff Regulations 2011) and also on the historical trends.
3.2 The Petitioner now requests the Commission to provisionally true-up the expenditure and revenue for FY 2013-14 based on the provisional accounts. The computation of revenue and expenses under various heads along with the relevant records and supporting documents with reasons and justifying such calculations under each head have been made. The head-wise details of costs with justification are enumerated below.
Power purchase expenses
3.3 Power purchase expenses have been computed on the following basis:
a) Power purchase expenses are computed as per the actual bills received from the generating companies.
b) Energy purchased through U.I Overdrawl during the year is considered towards state consumption.
c) Revenue received towards energy charges for U.I underdrawal has been reduced from the power purchase cost
d) Cost of state royalty power has been considered at a rate equivalent to the average power purchase rate for purchase from all large hydro generating stations which includes UJVN main stations, Maneri Bhali II, NHPC Stations, THDC and SJVNL. This is in line with the methodology adopted by the Hon’ble Commission in its previous Tariff Orders. The table below details the rate of state royalty power.
Table 1: Rate of State royalty power for FY 2013-14 Power purchased @ Cost Source of power state periphery (MU) (Rs Cr) UJVNL 3866.37 433.24 NHPC (Excl State royalty power from Tanakpur & 450.49 204.82 Dhauliganga) SJVNL 68.13 19.29 THDC( Excl State royalty power from Tehri and Koteshwar) 202.39 90.05 Sub-Total 4587.38 747.40 Rate of state royalty power 1.63
e) Hon’ble Central Electricity Regulatory Commission has revised the Tariff of various stations of central generating stations accordingly, the arrears amount has also been considered for such stations.
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f) Transmission charges payable to Power Grid Corporation of India Limited (PGCIL) and Power Transmission Corporation of Uttarakhand Limited (PTCUL) are taken on the basis of transmission charges paid to the respective company for the year.
3.4 The details of actual power purchase expenses are as follows:
Table 2: Actual Power purchase expenses for FY 2013-14 Power purchased at Cost Source of power state periphery (MU) (Rs Cr) NTPC 2757.73 858.07 NPCL 297.64 95.39 NHPC (Excl State royalty power Tanakpur & Dhauliganga) 450.49 204.82 UJVNL 3866.37 433.24 SJVNL 68.13 19.29 THDC( Excl State royalty power from Tehri and Koteshwer) 202.39 90.05 IPPs 346.93 117.39 Open market purchase 2271.54 772.10 UI Received 313.71 75.68 Banking 67.97 Sub-Total 10642.89 2666.04 GoU State royalty power
Tanakpur 36.40 5.93 Dhauliganga 32.19 5.25 Tehri 465.68 75.87 Koteshwer 173.52 28.27 Vishnuprayag 46.73 7.61 Sub-Total 754.54 122.93 Less: UI Received 43.41 3.36 Less: Banking 88.99 0.00 0.04 Sub-total 11265.02 3182.27 Transmission and Other Cost PTCUL 195.63 PGCIL 201.03
Total Power Purchase Cost 11265.02 3182.27
3.5 The table below details the variation in the power purchase expenses approved by the Commission in the MYT Order of FY 2013-14 against the expenses now claimed by the Petitioner as per the provisional accounts of FY 2013-14 and various other norms specified by the Commission.
Table 3: Variation in the Power purchase cost for FY 2013-14(Rs Cr) Particulars MYT Order Actual Variation Power purchase expenses 3198.42 3182.27 -16.15 including Transmission Charges
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Operation and Maintenance expenses
3.6 Operation and maintenance (O&M) expenses includes Employee Cost, Administration and General Expenses and Repair and Maintenance expenses.
Employee expenses
3.7 As specified in Clause 84 (4) of 'Uttarakhand Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2011', employee costs for the nth year and also for the year preceding the Control Period will be calculated as per the method given below.
EMPn = (EMPn-1) x (1+Gn) x (CPIinflation)
Where - EMPn-1 : Employee Costs for the (n-1) th year; CPIinflation: is the average increase in the Consumer Price Index (CPI) for immediately preceding three years;
Gn is a growth factor for the nth year. Value of Gn shall be determined by the Commission in the MYT tariff order for meeting the additional manpower requirement based on Distribution Licensee’s filings, benchmarking and any other factor that the Commission feels appropriate.
3.8 In the MYT order dated 6th May, 2013 the Commission for approval of Employee Expenses has adopted the following approach:
“For estimating the employee expenses for the Control Period, the Commission first analysed the employee cost for existing employees of last five years for the period FY 2007-08 to FY 2011-12 based on the actual employee expenses as submitted in the Audited Accounts. However, the employee expenses for FY 2007-08 and FY 2008-09 were substantially lower than the employee expenses for FY 2009-10 to FY 2011-12 on account of implementation of Sixth Pay Commission recommendation during the latter period. Hence, the Commission analysed the employee cost for existing employees of three years from FY 2009-10 to FY 2011-12. However, on analysis of the employee expenses, the Commission observed that the employee expenses for FY 2012-13 as estimated in accordance with the provisions of UERC Regulations, 2011 based on the average of actual three years employee expenses is working out to be lower than the actual annualized employee expenses for FY 2012-13 based on the MTB upto October, 2012. Therefore, for projecting Gross Employee Expenses and Capitalisation of Employee Expenses for FY 2012-13 and Control Period for FY 2013-14 to FY 2015-16, the Commission has considered the actual employee expenses for FY 2011-12 as base year for projecting the employee expenses for the Control Period after adjusting for the arrears paid towards the implementation of Sixth Pay Commission in FY 2011-12.”
3.9 The Commission had not considered the employee expenses for FY 2012-13 for projecting the employee expenses for the each year of the MYT control Period. However, the actual employee expenses for FY 2012-13 based on the audited account is now available. Actual gross and net employee expenses for FY 2012-13 are Rs 257.98 Cr and Rs 224.04 Cr respectively. This has also been approved by the Commission in the Tariff Order for UPCL for FY 2014-15, while truing up for FY 2012-13.
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3.10 The Petitioner has considered employee expenses for FY 2012-13 as the base year and projected the employee expenses for each year of the MYT Period based on the UERC tariff Regulations 2011.
3.11 The Petitioner would like to bring it to the notice of the Hon’ble Commission that it had to bear the responsibility of paying enhanced pension. This is on account of pay revision in third time scale with effect from 01.01.1996 due to which pension and family pension was revised for the employees who retired between 01.01.1996 to 20.07.2010. Treasury department of Uttarakhand refused to disburse pension on enhanced pay as they did not get contribution on this account. GoU vide GO No. 85 dated 07.07.2011 stated that the pension/family pension is not allowed on presumptive pay.
3.12 On February 5, 2013, Additional Secy (energy) vide letter no. 173 directed UPCL to release enhanced pension from their own fund. Hence, in accordance with the directions of GoU, UPCL has started paying enhanced pension to the employees who retired during 01.01.1996 to 20.07.2010.
3.13 The actual impact of enhanced pension for FY 2013-14 was Rs 17.23 Cr. Since enhanced pension was not part of the base employee expenses i.e. employee expenses for FY 2012-13, this has been considered additionally in FY 2013-14 and increased in FY 2014-15 and FY 2015-16 by the same factors as other employee expenses.
3.14 In addition to above cost, additional expenses incurred on account of new allowances has been considered as a part of employee expenses. UPCL has increased the value of certain allowances such as Motor Cycle Allowance, Conveyance Charges, Cycle Allowance, Washing Allowance, Distribution Profit Incentive Allowance, Bi-Lingual Allowance etc w.e.f. August 1, 2013. The additional cost on account of such expenses was Rs 0.63 Cr in FY 2013-14 and projected at Rs 0.94 Cr for FY 2014-15 and FY 2015-16.
3.15 The revised employee expense trajectory for each year of the Control Period is shown below:
Table 4: Revised Employee Expense Trajectory for MYT Control Period (Rs Cr)
Particulars FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Inflation Factor 9.76% 9.50% 9.50% Growth Factor 5.79% 5.80% 5.81% Gross Employee Expenses 257.98 299.55 347.03 402.08 Impact of enhanced pension 17.23 18.87 20.66 Impact of change in
Allowances 0.63 0.94 0.94 Gross Employee Expenses 317.41 366.84 423.68
3.16 During FY 2013-14, the Petitioner has incurred actual gross and net employee expenses of Rs 297.53 Cr and Rs 259.06 Cr respectively.
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Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
Table 5: Employee Expenses for FY 2013-14 (Rs Cr) Particulars MYT Order Actual Variation Gross Employee Expenses 297.53 Less: Capitalisation 38.47 Net Employee Expenses 225.88 259.06 33.24
3.17 As per the UERC Tariff Regulations, 2011, employee expense is controllable parameters. As the actual gross employee expense is lower by Rs 19.88 Cr, the Petitioner has proposed to share the savings as per the UERC Tariff Regulations 2011, where 80% of the profit is retained by the licensee and 20% is shared with the consumer. This is detailed in “Sharing of Gains and Losses” section.
A&G expenses
3.18 The actual gross and net A&G expenses incurred by the Petitioner for FY 2013-14 were Rs 24.97 Cr and Rs 18.01 Cr respectively.
Table 6: A&G Expenses for FY 2013-14 (Rs Cr) Particulars MYT Order Actual Variation Gross A&G Expenses 24.97 Less: Capitalisation 6.96 Net A&G Expenses 23.25 18.01 -5.24
3.19 As per the UERC Tariff Regulations, 2011, A&G expense is controllable parameters. As the actual A&G in lower by Rs 5.24 Cr, the Petitioner has proposed to share the savings as per the UERC Tariff Regulations 2011, where 80% of the profit is retained by the licensee and 20% is shared with the consumer. This is detailed in “Sharing of Gains and Losses” section.
R&M expenses
3.20 The actual R&M expense incurred by the Petitioner for FY 2013-14 was Rs 77.18 Cr.
Table 7: R&M Expenses for FY 2013-14 (Rs Cr) Particulars MYT Order Actual Variation R&M Expenses 91.27 77.18 -14.09
3.21 As per the UERC Tariff Regulations, 2011, R&M expense is controllable parameters. As the actual R&M is lower by Rs 14.09 Cr, the Petitioner has proposed to share the savings as per the UERC Tariff Regulations 2011, where 80% of the profit is retained by the licensee and 20% is shared with the consumer. This is detailed in “Sharing of Gains and Losses” section.
3.22 The table below details the O&M expenses approved by the Commission in the MYT Tariff Order of FY 2013-14 against the O&M expenses now claimed by the Petitioner as per the provisional accounts of FY 2013-14.
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Table 8: Operation and Maintenance Expenses for FY 2013-14 (Rs Cr) Particulars MYT Order Actual Variation Employee Cost 297.53 Less: Capitalisation 38.47 Net Employee Cost 225.88 259.06 33.24
Repair and Maintenance 91.27 77.18 -14.09
Administrative and General 24.97 expenses Less: Capitalisation 6.96 Net Administrative and General 23.25 18.01 -5.24 Expenses
Total O&M Expenses 340.40 354.25 13.85
Interest and Finance Charges
3.23 Interest expenses has been claimed on the following basis:
a) Actual interest accrued during the year has been claimed which is net off capitalisation
b) Interest on UPPCL loans has not been considered
c) Interest on REC (Old) loans has been taken in accordance with the interest determined by the Commission in MYT Order dated 6th May 2013 issued by UERC
d) Government Guarantee fees is considered on actual basis.
e) Interest on GPF has been considered. The Petitioner prays the hon’ble Commission to allow interest on GPF as part of interest expense as this is the statutory liability of the Petitioner. The Government of Uttarakhand (GOU) in past has refused to provide support to UPCL on account of Interest on GPF. It may be noted that GOU is already bearing the terminal liability of the old employees unlike other states. In case, the hon’ble Commission is of the opinion that interest on GPF has to be borne by the state government, it may issue suitable advisory to the GOU in this regard.
f) Short-term loan through overdraft has not been considered.
3.24 The table below details the Interest expenses for FY 2013-14 as per provisional accounts:
Table 9: Interest Expenses for FY 2013-14 (Rs Cr) Particulars Actual APDRP 29.17
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Particulars Actual District Plan 0.00 MNP 0.28 PMGY 4.65 State Plan 0.00 AREP 0.98 6.89 RGGVY 26.16 GPF Others 0.00 Total Interest on GoU Loan 68.12 Interest on REC (Old) Loans 26.92 Interest on new REC Loans 7.90 Interest on consumers security deposit 56.35 GoU Guarantee Fees 0.56 Other financial & Bank charges 1.20 Gross Interest Charges 161.05 Less: Capitalization -34.84 Net Charges 126.20
3.25 The interest expenses claimed in this chapter have been reconciled with the actual interest and finance charges as per the provisional accounts of FY 2013-14. The details are provided in the table below:
Table 10: Reconciliation of Interest Expenses for FY 2013-14 (Rs Cr) Particulars Actual as per Account Claimed in True-up Petition Interest on State Govt. Loan 41.96 41.96 APDRP 29.17 29.17 District Plan 0.00 MNP 0.28 0.28 PMGY 4.65 4.65 State Plan 0.00 AREP 0.98 0.98 Other 0.00 RGGY 6.89 6.89 Interest on other loans and liabilities 58.78 60.98 Interest on REC (Old) Loans 24.72 26.92 GPF 26.16 26.16 Interest on loan of REC 7.90 7.90 Interest on consumers security deposit 56.35 56.35 GoU Guarantee Fees 0.56 0.56 Other financial & Bank charges 21.66 1.20 Bank Commission for collection from Consumers 1.20 1.20 Interest on Bank Short Term Loan/ Overdraft 20.46 Less: Interest and other financial charges charged to capital WIP -34.84 -34.84 Gross Interest Charges 144.47 126.20 15 | P a g e
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3.26 The table below details the variation in the Interest expenses approved by the Commission in the MYT Order of 2013 against the interest expenses now claimed by the Petitioner as per the provisional accounts of FY 2013-14.
Table 11: Variation in the Interest Expenses for FY 2013-14 (Rs Cr) Particulars MYT Order Now Claimed Variation Interest Expenses 118.99 126.20 7.21
Depreciation
3.27 Depreciation has been calculated on the Opening and Closing gross fixed assets specified in the provisional accounts of FY 2013-14 i.e. Rs 2031.76 Cr and Rs 2161.43 Cr respectively.
3.28 Depreciation has been calculated on the average basis on the normative rates specified by the Commission in UERC (Terms and Conditions for determination of distribution tariff), 2011.
3.29 The item-wise details of depreciation are as follows:
Table 12: Depreciation for FY 2013-14 (Rs Cr)
Particulars FY 2013-14 2031.76 Opening GFA net of grant and consumer contribution Additions as per accounts 239.97 Deduction -110.31 Closing GFA net of grant and consumer contribution 2161.43 Average depreciation rate 5.16 % Depreciation 108.23
3.30 The table below details the variation in the Depreciation approved by the Commission in the MYT Order of FY 2013-14 against the depreciation now claimed by the Petitioner for FY 2013-14.
Table 13: Variation in the Depreciation for FY 2013-14 (Rs Cr) Particulars MYT Order Now Claimed in true Up Petitiom Variation Depreciation 69.46 108.23 38.77
Interest on Working Capital
3.31 The interest on working capital has been calculated in line with the methodology adopted by the Commission in UERC Tariff Regulations, 2011.
3.32 The working is detailed in the table below:
Table 14: Interest on working capital (In Rs Cr) Particulars FY 2013-14 One month O&M expense 29.52 Maint enance @ 15% of O&M expenses 53.14
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Particulars FY 2013-14 Receivables (2 months) 625.94 Sub -total 708.60 Less: Adjustment for security deposits & credit by power purchase 741.79 Net working Capital -33.19
3.33 As per the normative working capital norm, the working capital requirement was negative. However, as the actual collection from consumer is not on the time, the Petitioner has to draw short term loan from banks and incurred Rs 20.46 Cr. However, the Petitioner has claimed no interest on working capital and instead have claimed late payment surcharge collected from consumers, which is on account of delay by consumers on the bill payment.
3.34 The table below details the variation in the interest on working capital approved by the Commission in the MYT Order FY 2013-14 against the interest now claimed by the Petitioner for FY 2013-14.
Table 15: Variation in the Interest on working capital for FY 2013-14 (Rs Cr) Particulars MYT Order Now Claimed in True Up Petition Variation Interest in Working Capital 7.26 0 -7.26
[Return on Equity
3.35 For FY 2013-14, return on equity has been calculated based on actual equity invested in the business. RoE has been calculated in the following manner:
a) Closing equity of FY 2012-13 has been considered as opening equity.
b) Capitalisation for FY 2013-14 with its funding pattern has been considered.
Table 16: Funding of capitalised amount (Rs Cr)
Particulars FY 2013-14 Capitalization 239.97 Loan 80.00 Grant 2.94 Deposit work 24.28 Internal resource 132.75
c) The amount of capitalisation in has been reduced by grant and deposit works and balance amount has been split in 70:30 debt equity ratio. Internal accrual deployed in the capitalisation higher than 30% equity has been considered as normative loan.
Table 17: Funding pattern of capitalised amount 2013-14 Capitalisation less grant/ deposit work (A) 212.75 Actual loan 80.00 Total internal accrual 132.75 Loan (70% of A) or actual loan, whichever is higher 148.93
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2013-14 Normative loan 68.93 Equity (30% of A) or Internal Accrual, whichever is lower 63.83
d) Return on equity has been calculated on average equity during the FY @16%.
Table 18: Computation of return on equity for FY 2013-14 (Rs Cr) Particulars 2013-14 Opening equity 1107.04 Addition 63.83 Closing equity 1170.87 Average equity 1138.95 RoE (@16%) 182.23
3.36 The table below details the variation in return on equity approved by the Commission in the MYT Order of FY 2013-14 against the return now claimed by the Petitioner for FY 2013-14.
Table 19: Return on equity for FY 2013-14 (Rs Cr) MYT Order Now Claimed in True Variation Particulars Up Petition Return on Equity 25.48 182.23 -156.75
Revenue from tariff and Distribution Losses
3.37 During FY 2013-14 the Petitioner has billed actual revenue of Rs 3755.67 Cr, which is lower by Rs 187.27 Cr than revenue approved from sale of Power (Rs 3942.94 Cr) by the Commission.
3.38 As per UERC Tariff Regulations, 2011, the baseline values for the Control Period shall be determined by the Commission based on historical data, latest audited accounts, estimates for the relevant year and prudence check as applied by the Commission. In case there is a substantial difference between the estimates provided earlier or considered for the determination of baseline values and the actual audited accounts, the Commission may re-determine the baseline values for the base year suo- moto or on an application filed by the Applicant.
3.39 Based on the above, the Petitioner pays to the Commission to re-determine the distribution loss trajectory keeping in mind the actual approved distribution loss for FY 2012-13 which is 21.70% against 17% considered by the Commission in the MYT Order based on which the trajectory for the Control Period was projected.
3.40 The Commission in its previous Tariff Orders has been computing additional deemed revenue earned by the utility for adjusting the approved losses against the actual, which in reality is not earned by the Petitioner. Till FY 2012-13, Commission has considered additional revenue amounting to Rs 983.01 Cr, which has not been received by the Petitioner but has been considered by the Commission for adjustment of losses.
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3.41 In view of above, the Petitioner would like to call for Commission’s attention towards the stringent targets fixed by the Commission. The utility has always strived to achieve the targets fixed by the Commission and thereby providing the best service to its consumers.
3.42 Distribution and AT&C loss level reduction achieved by the Petitioner in last for years is shown in the table below:
Table 20: Distribution and AT&C Losses reduction over last 5 years Particulars Total 2009-10 2010-11 2011-12 2012-13 2013-14 reduction Distribution Loss 24.53% 21.61% 19.96% 20.50% 19.18% 5.35% Distribution Loss reduction during the year 2.92% 1.65% -0.54% 1.32%
AT&C Loss 29.41% 27.44% 25.82% 22.76% 20.36% 9.05% AT&C Loss reduction during the year 1.97% 1.62% 3.06% 2.40%
3.43 As can be seen, the Petitioner has reduced distribution losses and AT&C losses by 5.35% and 9.05% in last 4 years.
3.44 Petitioner would like to submit that for the loss target not achieved during a particular year, the utility is penalised every year for its non-achievement e.g. the loss trajectory for the next year is not reviewed/reset based on the loss level achieved during the year although the Petitioner is being penalised for the loss level achieved during the year.
3.45 For a utility which is already in a state of financial distress, this amount makes a huge impact. Therefore, the Petitioner humbly requests the Commission to not to consider any additional revenue towards adjustment of losses and revisit and adjust the revenue that has been considered in the past on this account. Although, in compliance to the approach adopted by the Commission in its previous Tariff Orders, the Petitioner has calculated additional revenue for FY 2013-14.
3.46 In the table below, the Petitioner has projected loss in tariff revenue due to higher distribution losses.
Table 21: Revenue loss due to higher distribution losses for FY 2013-14 Particulars Formula Actual/re-casted sales (MU) A 9047.07 Actual energy input at Distribution periphery (MU) B 11216.31 Approved distribution losses (in %) C 16.00%
Sales at energy input at distribution loss level D = B*(1-C) 9421.70 Loss of sale due to inefficiency in distribution loss E=D-A 374.63 Revenue for FY 2013-14 F 3755.67 ABR @ 9047.07 MU G= F/A 4.15 Revenue from additional sale F=E*G 155.52
3.47 As per the UERC tariff Regulation, 2011, distribution losses is controllable parameter and hence the petitioner has proposed to share losses on account of the worse performance of the licensee has to be shared with the consumer. This is detailed in “Sharing of Gains and Losses” section. 19 | P a g e
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Table 22: Return from Sale of Power for FY 2013-14 (Rs Cr) As per MYT Order Actual Variation Particulars 13 (Rs Cr) (Rs Cr) Revenue from Sale of Power 3942.94 3755.67 -187.27
Collection efficiency
3.48 As per the UERC Tariff Regulation, 2011 collection efficiency is controllable parameter. The Commission in the MYT Order dated 6th May, 2013 has fixed the collection efficiency target for the petitioner for FY 2013-14 as 97.50%. The actual collection efficiency achieved by the Petitioner was 98.43%, resulting gain due to higher collection by Rs 34.78 Cr. The Petitioner has proposed to share gains with the consumer @ 20% in accordance with the UERC Tariff Regulations 2011. This is detailed in “Sharing of Gains and Losses” section.
Provision for bad and doubtful debts
3.49 Annual provisioning towards bad & doubtful debts is an accepted method of accounting and considering the peculiarity of retail supply of electricity business, the same has also been recognized by the State Regulatory Commissions. The amount, if any, written off towards bad debts is only adjusted against the accumulated provisions in the books, irrespective of the actual amount of bad debts during any particular financial year.
3.50 Considering the geographical spread of the large consumer base across the State including a large part of the same prevailing in the difficult terrain and hilly region and the problem of realizing energy dues from retail consumers, the Petitioner requests the Commission to allow provision for bad and doubtful debts on actual basis.
3.51 The Commission in the MYT Order, 2013 did not allow for any provisioning of bad debts for earlier years. In line with the approach followed by Commission in the previous Tariff Order, the Petitioner has not included any amount on account of provisioning of bad debts in the ARR but has calculated the same and requests the Commission for its approval.
3.52 The Petitioner would like to submit that as per the direction of the Commission, the process of writing off bad debts has already been initiated. The Petitioner in this petition prays the Commission to consider the increase in debtors, which is Rs 59.11 Cr during FY 2013-14 towards the provision for bad debts.
Non-Tariff Income (NTI)
3.53 Non-Tariff Income includes incomes from non-tariff sources such as Income from investments, delayed payment surcharge etc.
3.54 Actual non-tariff income as per the provisional account of the Petitioner is Rs 129.09 Cr, which includes delayed payment surcharge of Rs 18.11 Cr. However, the Petitioner in this petition has proposed the non-tariff income to be shared with the consumers as Rs 86.51 Cr.
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3.55 The Petitioner has proposed not to share the delayed payment surcharge with the consumer as the utility has to make short-term arrangements against that amount when the amount due from consumers is not received on time. The Commission allows normative working capital to the Petitioner, assuming timely payment by all consumers.
3.56 The Petitioner also proposes to share only 50% of the rebate earned on account of timely payment of the power purchase bills. The Petitioner earns 2% rebate by paying bill within 2-3 days of production of bill while if it pays on 30th day, it is entitled for 1% rebate. The Petitioner has earned higher rebate (more than 1%) due to its efficiency and therefore prays the Commission to allow it to retain the same.
3.57 The Table below shows the variation in the NTI approved by the Commission in the MYT Order of FY 2013-14 and the actual NTI now claimed by the Petitioner for FY 2013-14.
Table 23: Variation in the Non-Tariff Income for FY 2013-14 (Rs Cr) Particulars MYT Order Now Claimed in True Up Petition Variation Non-Tariff Income 66.70 86.51 19.81
Sharing of Gains and Losses
3.58 As per the UERC Tariff Regulation, 2011,
“10 (1) The Commission shall stipulate a trajectory for certain variables having regard to the past performance
Provided that the variables for which a trajectory shall be stipulated, shall include but not limited to
…..
----
(c) In case of Distribution Licensee:
Supply availability, wires availability, distribution losses, collection efficiency etc.
Provided further that this trajectory should provide for sharing of gains and losses with consumers on account of superior and inferior performance as against the targets defined”
“15 Sharing of gains and Losses on account of Controllable factors
(1) The approved aggregate gain to the applicant on account of controllable factors shall be dealt with the following manner:
(a) 20% of the such gain shall be passed on as a rebate in tariff over such period as may be specified in the order of the Commission
(b) The balance amount of the gain may be utilised at the discretion of the Applicant 21 | P a g e
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(2) The approved aggregate loss to the applicant on account of controllable factors shall be dealt with the following manner:
(a) 25% of the such gain shall be allowed by the Commission to be recovered through tariff over such period as may be specified in the order of the Commission
(b) The balance amount of loss shall be absorbed by the Applicant.”
3.59 In FY 2013-14, the Petitioner has achieved better performance against the targets specified on the performance parameters – employee expenses, R&M expenses, A&G expenses and collection efficiency. However, the petitioner’s was not able to achieve the performance target with respect to the distribution losses.
3.60 In accordance with the UERC Tariff Regulations 2011, the gain and loss sharing statement with respect to performance parameters is shown below:
Table 24: Sharing of Gains and Losses (Rs Cr) Particulars Amount Consumer Share UPCL Share A. Gain 20% 80% Employee expenses 19.88 3.98 15.90 A&G Expenses 14.09 2.82 11.27 R&M Expenses 5.24 1.05 4.19 Collection Efficiency 34.78 6.96 27.83 Subtotal (A) 73.99 14.80 59.20 B. Loss 25% 75% Loss of Additional revenue due to higher 155.52 38.88 116.64 Distribution Loss Subtotal (B) 155.52 38.88 116.64 Grand Total – Losses to be borne (B-A) 81.52 24.08 57.44
ARR and Revenue for FY 2013-14
3.61 Based on the above submission, the summary of expenses and revenue for true-up for FY 2013-14 is presented below:
Table 25: Provisional True-up of FY 2013-14 (Rs Cr) Approved by Now claimed in Particulars UERC in MYT true Up Petition Order A Expenditure 1 Power purchase expenses 2841.71 2785.61 2 Recovery from UJVNL on account of true up -2.83 3 Transmission Charges-PGCIL 163.91 201.03 4 Transmission Charges-PTCUL 195.63 195.63 Total Power Purchase Expenses Including Transmission 5 3198.42 3182.27 Charges (1+2+3+4) 6 O&M Charges 340.40 354.25
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Approved by Now claimed in Particulars UERC in MYT true Up Petition Order 7 Interest Charges 118.99 126.20 8 Depreciation 69.46 108.23 9 Interest on Working Capital 7.26 0.00 10 Gross Expenditure (5+6+7+8+9) 3734.53 3770.95 B Other expenses/Appropriations 11 Provision for bad and doubtful debts 0.00 0.00 12 Return on equity 25.48 182.23 13 Net Expenditure (10+11+12) 3760.01 3953.18 14 Less: Non-Tariff Income 66.70 86.51 15 Add: Impact of True Up of FY 11 & FY 12 239.30 239.30 16 Net annual revenue requirements (13-14+15) 3932.60 4105.97 17 Revenue at existing tariffs 3942.94 3755.67 C Other adjustment 18 Losses to be borne by UPCL as per sharing statement 57.44 D Revenue Surplus/(Gap) (16 -17-18) 10.34 (292.86)
3.62 The Petitioner requests the Commission to approve the Gap of Rs 292.86 Cr for FY 2013-14 and allow the same to recovered in FY 2015-16.
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A4: ANNUAL REVENUE REQUIREMENT AND DETERMINATION OF TARIFF FOR FY 2015-16
4.1 The Petitioner seeks Commission’s approval for determination of ARR for FY 2015- 16.
Energy Sales Forecast
4.2 Uttarakhand, like most of the other States in India, is operating under an energy deficit scenario i.e. the demand exceeds supply of power.
4.3 One of the reasons for the State witnessing gap between electricity demand and supply is because of rising per capita power consumption. According to the Central Electricity Authority's (CEA) General Review, 2008 the per capita electricity consumption in Uttarakhand was 706.8 kWh in FY 2006-07 which increased to 1112.29 kWh in FY 2009-10 (Press Information Bureau, Government of India) in a span of three years. Since FY 2009-10, the energy sales in the state have increased at an average rate of 14.53% per annum upto FY 2011-12. There was a reduction in rate of growth of sales in FY 2012-13 and FY 2013-14 but the same is expected to recover in the future.
4.4 The energy for retail supply depends on the availability of power in the State. The projection for the total energy available for sale is based on the total energy input from all Central and State Generating stations, as discussed in the following section. Uttarakhand is mainly dependent on state-owned generation.
4.5 Based on actual energy sales data, Uttarakhand had energy consumption CAGR (Compound Annual Growth Rate) of 9.62 % over the past eight years from FY 2006-07 to FY 2013-14, as shown in the following table.
Table 26: Actual Energy sales for consumer categories during FY 2006-07 to FY 2013-14 (MU) Consumer Category 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 RTS-1: Domestic 1108.52 1163.74 1223.06 1388.38 1485.57 1676.70 1795.06 2107.07 RTS-2:Non-Domestic 542.31 607.75 663.48 734.66 812.52 885.42 953.94 993.87 RTS-3: Public Lamps 40.53 45.23 41.36 51.42 53.86 66.89 87.20 44.06 RTS-4: Private Tube-wells / 275.63 205.41 171.35 181.19 183.02 188.46 244.80 222.82 Pumping sets RTS-5: Government 83.36 94.79 94.71 116.96 112.97 136.56 130.20 104.23 Irrigation System RTS-6: Public Water 196.07 217.38 207.87 247.30 276.37 324.52 302.68 293.37 Works RTS-7: LT & HT Industry 1567.91 2287.65 2980.83 3399.16 4197.72 4805.52 4884.88 5092.57 Total LT 155.22 156.20 192.86 201.82 234.96 269.78 289.42 287.66 Total HT 1412.69 2131.46 2787.97 3197.34 3962.76 4535.74 4595.46 4804.91 RTS-8: Mixed Load 65.07 104.68 100.39 122.81 120.86 160.26 167.55 177.60 RTS-9: Railway Traction 6.50 9.48 10.68 7.34 7.80 8.39 7.83 11.49 Total 3885.92 4736.10 5493.73 6249.21 7250.68 8252.72 8574.15 9047.07
4.6 It is assumed that energy consumption in the future will continue to grow based on the past growth trends in electricity consumption. 24 | P a g e
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Projection of Energy Sales - comparing multiple methodologies
4.7 Projection of energy sales has been done as specified in Regulation 76 of 'UERC (Terms and Conditions for Determination of Tariff) Regulations, 2011:
''(1) Considering the importance of capturing seasonal variation, Monthly Sales Forecast for the Control Period shall be done in respect of each consumer category/sub-category and to each tariff slab within such consumer category/sub-category, based on the past trends, as far as possible and shall be submitted to the Commission for approval along with the Business Plan. Suitable adjustments shall be made to reflect the effect of known and measurable changes with respect to number of consumers, the connected load and the energy consumption, thereby removing any abnormality in the past data. Provided that where the Commission has stipulated a methodology for forecasting sales to any particular tariff category, the Distribution Licensee shall incorporate such methodology in developing the sales forecast for such tariff category.
(2) Sales forecast for un-metered consumers shall be validated with norms as may be approved by the Commission from time to time.
(3) The sales forecast shall be consistent with the load forecast prepared as part of the long- term power procurement plan submitted as a part of Business Plan under these Regulations and shall be based on past data and reasonable assumptions regarding the future.''
4.8 For projecting category-wise energy sales of UPCL for the remaining years of the Control Period the Adjusted Trend Analysis Method have been applied in line with the approach followed by the Commission in its MYT Order. Furthermore, sales projections from the report of the 18th Electric Power Survey (EPS) undertaken by the Central Electricity Authority (CEA) have been presented below.
Energy Sales - From Draft 18th Electric Power Survey Projections
4.9 The primary objective of the 18th Electric Power Survey forecast is to determine the electricity demand for States & Union Territories so that they can plan and arrange to meet the energy demand. The EPS forecast is a projection of aggregate power demand over the year and category-wise electricity consumption. Partial End-use Method (PEUM), which is a combination of end-use method and time series analysis has been applied.
4.10 Projected total annual energy sales figures from draft 18th EPS are given in the table below.
Table 27: Sales Forecast from draft 18th EPS Total Annual Sales FY 2014-15 FY 2015-16 FY 2016-17 Total Sales (MU) 9387 9974 10600 Source: 18th EPS
4.11 It may be noted that the projections of the 18th EPS are on the lower side. Even for FY 2013-14, the 18th EPS projects sales of 8832 MUs against the actual recorded re- casted sales of 9047 MU.
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Projection of Energy Sales - Adjusted Trend Analysis (CAGR) Method
4.12 For projecting the category-wise energy sales of UPCL for FY 2015-16, the past growth trends in each consumer category is considered as explained below:
a) UPCL has adopted an Adjusted Trend Analysis Method for projecting the sales for all consumer categories. This method assumes that the underlying factors which drive the demand for electricity are expected to follow the same trend as in the past. However, this approach also discounts any outlier (relative to the trend) observed in the growth rates over the period of 5 years and excludes them while projecting energy sales for FY 2015-16.
b) This method makes use of a statistical tool, namely the Compound Annual Growth Rate (CAGR). According to this method, Compound Annual Growth Rates (CAGRs) were calculated from the past figures for each category, corresponding to different lengths of time in the past five years, along with the year on year growth rates from FY 2008-09 to FY 2013-14.
c) For projection of sales for FY 2015-16, CAGR has been computed for each consumer category for the past 5-year period FY 2008-09 to FY 2013-14, the 4-year period FY 2009-10 to FY 2013-14, the 3-year period FY 2010-11 to FY 2013-14, and the 2-year period FY 2011-12 to FY 2013-14, along with the 1-year growth rate of FY 2012-13 over FY 2013-14, as summarised in the table below:
Table 28: CAGR calculated for energy sales to each consumer category Consumer Category 5 year 4 year 3 year 2 year 1 year RTS-1: Domestic 11.49% 10.99% 12.34% 12.08% 17.41% RTS-2:Non-Domestic 8.42% 7.85% 6.95% 5.95% 4.19% RTS-3: Public Lamps 1.27% -3.79% -6.47% -18.84% -36.90% RTS-4: Private Tube- wells / Pumping sets 5.39% 5.31% 6.78% 8.73% -8.98% RTS-5: Government Irrigation System 1.93% -2.84% -2.65% -12.63% -19.95% RTS-6: Public Water Works 7.13% 4.36% 2.01% -4.92% -3.08% RTS-7: LT & HT Industry 11.31% 10.63% 6.65% 2.94% 4.25% Total LT 8.32% 9.26% 6.98% 3.26% -0.61% Total HT 11.50% 10.72% 6.63% 2.92% 4.56% RTS-8: Mixed Load 12.09% 9.66% 13.69% 5.27% 6.00% RTS-9: Railway Traction 1.46% 11.83% 13.75% 16.99% 46.64% Extra State Consumers 17.51% 13.28% 37.11% 55.71% -11.05% Total 10.49% 9.69% 7.66% 4.70% 5.73%
d) A 5 year CAGR has been chosen for the purpose of projections, except for a few categories like RTS-3 Public Lamps, RTS-5 Government Irrigation System and RTS-8 Mixed Load.
(i) Sales for HT industry and LT industry have been projected to increase at Subjective Rate of 5% similar to assumption of the Hon’ble Commission in the MYT Order dated 6th May 2013.
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(ii) The Y-o-Y growth in sales for Public Lamps & Government Irrigation systems has been uneven ranging from -36.90% to 24.32% & -19.95% to 23.49% respectively. Therefore the CAGR methodology is not reliable in this case. The sales projections for these categories have also been done based on a subjective rate of 5%, similar to the assumed rate for Industries.
(iii) Sales for Mixed Load category has been done based on Y-o-Y Growth rate as the increase observed was evenly distributed during the past few years.
e) For projection of sales, the projected sales for FY 2013-14 for each consumer category have been taken as the base, i.e. the chosen growth rate is applied over the sales for FY 2013-14 to make projections for each category for FY 2015-16.
f) However, energy sales to un-metered consumers under Domestic and Private Tube Wells in FY 2013-14 have been re-casted as per methodology (based on the connected load for the un-metered consumers vis-à-vis that for metered consumers in the same consumer category) specified by the Commission before considering them for projections.
4.13 The projected energy sales for FY 2014-15 and FY 2015-16 for each consumer category are detailed below:
Table 29: Energy Sales (MU) for FY 2013-14, FY 2014-15 and FY 2015-16 Category Wise Sales FY 2013-14 Method Growth FY 2014- FY 2015-16 (Actual) Adopted Rate 15 (RE) (Proj) RTS-1: Domestic 2107.07 CAGR-5 year 11.49% 2348.91 2618.75 RTS-2:Non-Domestic 993.87 CAGR-5 year 8.42% 1077.54 1168.24 Subjective 44.06 5.00% 46.27 48.58 RTS-3: Public Lamps Rate RTS-4: Private Tube-wells / Pumping 222.82 CAGR-5 year 5.39% 234.83 247.50 sets RTS-5: Government Irrigation Subjective 104.23 5.00% 109.54 114.92 System Rate RTS-6: Public Water Works 293.37 CAGR-5 year 7.13% 314.29 336.71
RTS-7: LT & HT Industry 5092.57 5347.20 5614.56 Subjective 287.66 5.00% 302.04 317.14 Total LT Rate Subjective 4804.91 5.00% 5045.16 5297.41 Total HT Rate RTS-8: Mixed Load 177.60 1 year 6.00% 188.26 199.56 RTS-9: Railway Traction 11.49 CAGR-5 year 1.46% 11.65 11.82
Total 9047.07 9678.38 10360.63
4.14 The month-wise slab-wise projected energy sales for FY 2015-16 for each consumer category is detailed in the following table:
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Table 30: Slab-wise monthly energy sales projections for FY 2015-16 (MU) Category Wise Sales FY 2015-16 Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Total RTS-1: Domestic 189.89 203.93 196.77 212.53 218.60 229.14 221.27 224.97 228.71 232.22 223.82 236.90 2618.75 RTS-2: Non-Domestic 85.62 98.16 105.30 103.82 99.45 97.06 96.31 92.70 92.95 101.90 98.22 96.75 1168.24 RTS-3: Public Lamps 4.15 4.16 4.09 3.35 3.27 5.49 3.77 3.77 5.84 4.02 3.75 2.91 48.58 RTS-4: Private Tube-wells / 11.63 11.51 15.86 48.46 14.06 13.19 13.71 16.59 31.97 50.26 7.57 12.70 247.50 Pumping sets RTS-5: Government Irrigation 10.34 9.99 9.49 8.61 9.56 8.89 11.12 8.73 10.11 12.07 10.77 5.25 114.92 System RTS-6: Public Water Works 27.66 26.53 28.07 28.87 24.71 29.67 28.28 29.62 30.51 29.57 27.12 26.11 336.71 RTS-7: LT & HT Industry 469.19 474.56 478.86 477.44 470.92 465.40 481.27 449.35 452.67 474.68 479.47 440.75 5614.56 Total LT 23.57 25.42 26.03 27.80 26.84 25.54 26.00 26.24 26.35 29.50 27.57 26.28 317.14 Total HT 445.62 449.13 452.83 449.64 444.08 439.86 455.26 423.11 426.32 445.18 451.90 414.47 5297.41 RTS-8: Mixed Load 13.57 14.27 15.55 15.69 16.51 16.79 16.36 15.21 16.62 20.11 21.07 17.79 199.56 RTS-9: Railway Traction 0.80 0.87 1.03 1.01 0.99 1.00 1.03 1.11 1.00 1.03 1.01 0.95 11.82 Total 812.83 843.99 855.01 899.78 858.07 866.63 873.13 842.04 870.37 925.86 872.82 840.10 10360.63
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Projection of Connected Load and Number of Consumers
4.15 Similar to the energy sales projection method, past growth trends in connected load/number of consumers have been analysed category-wise for forecasting. Adjusted Trend Analysis Method (which has been explained in energy sales CAGR method projections) has been used to forecast.
4.16 The Details of New Connections and Load added during the last five years are as follows:
Year Consumer(No.) Load(MW) 2009-10 102102 373
2010-11 82523 436
2011-12 96775 317
2012-13 80789 253
2013-14 79993 309
Total 442182 1689
4.17 For making projections of connected load and number of consumers, the actual connected load/number of consumers for FY 2013-14 for each consumer category is taken as the base, i.e. the chosen growth rate is applied over the actual connected load/number of consumers for FY 2013-14 to make projections for each category for FY 2015-16.
4.18 The projected connected load for FY 2014-15 and FY 2015-16 for each consumer category is detailed below:
Table 31: Connected Load (kW) for FY 2013-14, FY 2014-15 and FY 2015-16 Category FY 2013-14 Growth Rate Method Adopted FY 2014-15 (RE) FY 2015-16 (Actual) (Projected) RTS-1: Domestic 2082215 9.66% 5year 2284294 2504905 RTS-2:Non-Domestic 721893 9.66% 5year 791593 868022 RTS-3: Public Lamps 12333 0.65% 5year 12413 12493 RTS-4: Private Tube-wells / 141696 5.85% 5year 149991 158772 Pumping sets RTS-5: Government 49757 8.82% 5year 54145 58920 Irrigation System RTS-6: Public Water Works 62575 3.30% Avg less outliers 64642 66778 RTS-7: LT & HT Industry Total LT 176743 4.26% 5year 184267 192111 Total HT 1375494 5.00% Subjective Rate 1444269 1516482
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RTS-8: Mixed Load 58483 7.22% 4 year 62704 67230 RTS-9: Railway Traction 6800 0.00% 5year 6800 6800 Total 4688974 5055118 5452513
4.19 The projected number of consumers for FY 2014-15 and FY 2015-16 for each consumer category is detailed below:
Table 32: Projected number of consumers for FY 2013-14, FY 2014-15 to FY 2015-16 Category FY 2013-14 Growth Rate Method FY 2014-15 FY 2015-16 (Actual) Adopted (RE) (Projected) RTS-1: Domestic 1560677 5.84% 5year 1651884 1748415 RTS-2:Non-Domestic 181619 6.25% 5year 192965 205020 RTS-3: Public Lamps 644 3.68% Avg less outliers 668 693 RTS-4: Private Tube-wells / 26708 5.31% 5year 28126 29618 Pumping sets RTS-5: Government 1340 7.12% 5year 1435 1538 Irrigation System RTS-6: Public Water Works 1146 5.14% 5year 1205 1267 RTS-7: LT & HT Industry Total LT 9270 3.05% 5year 9553 9845 Total HT 1771 2.02% 1 year 1807 1844 RTS-8: Mixed Load 71 8.84% Avg less outliers 78 85 RTS-9: Railway Traction 1 0.00% 5year 1 1 Total 1783253 1887722 1998326
Distribution Loss trajectory
4.20 The following initiatives are being undertaken for loss reduction:
a) Installation of Capacitor Bank at 33/11 KV substations
b) Implementation of R-APDRP Part A scheme
c) Implementation of R-APDRP Part B scheme
d) Installation of Double metering in selected 11 KV & 33 KV consumers
e) Shifting of 1 Phase & 3 Phase meter outside the premises of the consumers
f) Implementation of AMR
g) Replacement of Mechanical Meters with Electronic Meters and Installation of Electronic meters in un-metered connections
h) Laying of LT ABC
i) DT Metering
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j) Replacement of defective meters
k) Procurement of High value consumer management system (HVCMS)
4.21 Distribution losses are measured considering the difference between the energy input at distribution periphery and the energy billed to consumers. For FY 2013-14, the actual loss has been to the tune of 19.34% against approved 21.70% in FY 2012-13, which is 2.36% lower.
4.22 The Petitioner has not been able to achieve loss reduction target as approved by the Commission for FY 2013-14 as the Hon’ble Commission has set the distribution loss trajectory for each year of the MYT Control Period based on the target fixed for base year i.e. FY 2012-13.
4.23 The Petitioner prays to the Commission to set realistic distribution loss trajectory for the MYT Control Period considering actual distribution loss for FY 2012-13. The Petitioner proposed to reduce the distribution loss by 1% in FY 2014-15 & 1% in FY 2015-16in each of the remaining year of the MYT Control Period. The proposed distribution loss trajectory for the MYT Control Period is detailed hereunder:
Table 33: Distribution Loss for FY 2013-14 to FY 2015-16 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Year (Actual) (Actual) (Projected) (Projected) Distribution Loss 21.70% 19.34%* 18.34% 17.34% *re-casted
4.24 The Petitioner in the current petition has projected the energy requirement for FY 2014 - 15 and FY 2015-16 based on the loss trajectory proposed above.
Collection efficiency
4.25 The following initiatives have been taken for commercial loss reduction and improvement of collection efficiency:
a) Convenient bill payment options like cash collection counters, online bill payment through credit card, debit card, internet banking, etc.
b) More teams to be sent to rural areas for increasing collection.
c) Recovery of past arrears
4.26 In FY 2013-14, the actual collection efficiency was recorded to be 98.43%. The utility is making concerted efforts to improve its performance and efficiency by incurring proposed capital expenditure. The sudden spurt in collection efficiency in FY 2013-14 is the result of continuous measures undertaken by the utility such as:
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a) Introduction of surcharge waiver scheme, which is one time in nature
b) Implementation of systems under RAPDRP schemes, due to which billing process has been streamlined
c) Accuracy in the system which has led to proper recording of the information.
d) Timely collection of bills has led to higher collection efficiency during the FY 2013-14
4.27 The Petitioner would like to submit that the sudden improvement in collection efficiency is reflected in FY 2013-14 which might not be replicated in the subsequent years.
4.28 Therefore, the Petitioner has proposed the same trajectory for the Control Period as was proposed in the MYT petition. The utility aims to achieve the collection efficiency level of 98.50% by the end of FY 2015-16. The proposed collection efficiency trajectory is detailed hereunder.
Table 34: Collection Efficiency for FY 2013-14 to FY 2015-16 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Year (Actual) (Actual) (Projected) (Projected)
Collection Efficiency 97.09% 98.43% 98.00% 98.50%
Power Procurement plan
4.29 The quantum of power purchase is decided by the expected sale of energy by the Licensee, as well as the targeted loss levels. Higher expected sales require a greater quantum of power to be purchased. Similarly, higher loss levels also require a proportionately greater amount of power purchase by the Licensee because it needs to meet the expected sales (in MU) after accounting for various losses in the process of supplying electricity.
4.30 The energy sale for each year is grossed up by the distribution loss level for the year, to arrive at the required quantum of power purchase for that year at the Discom periphery in the following manner:
Quantum of power purchase (MU) = Energy sales _____ (1 – Distribution Loss (%)/100)
4.31 Station-wise power procurement plan for FY 2015-16 is detailed hereunder.
Procurement of Power and Uttarakhand’s Allocated Share
4.32 The state of Uttarakhand receives a fixed allocated share from each of the central sector generating station to meet its energy requirements. Moreover, Uttarakhand also receives a
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quantum of electricity from the unallocated share of the central generating station at different intervals during a year.
4.33 UPCL procures power from central generating stations and other external sources apart from the power made available by the UJVNL from state generating stations. The shortage in supply due to excess demand is met through various short-term sources- Power Trading Corporation and other trading sources.
4.34 The major sources from which power is procured by the UPCL are:
a) UJVNL b) NTPC c) NHPC d) NPCIL e) SJVNL f) THDC g) Independent Power Producers (IPP) h) Short-term power arrangements: Banking, open market purchase etc
Broad Approach for Projecting Power Availability
4.35 Uttarakhand has firm allocated share in Central Sector Generating Stations (CSGS) of National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC), Tehri Hydro Development Corporation (THDC), Satluj Jal Vidyut Nigam Limited (SJVNL) and Nuclear Power Corporation Limited (NPCIL).
4.36 Station-wise power availability for FY 2015-16 has been estimated on the basis of the overall generation targets in line with Uttarakhand’s entitlement from each station.
Availability from UJVNL Stations
4.37 The Petitioner has estimated the monthly availability from Large Hydro Plants & Maneri Bhali-II of UJVNL based on 3 years average of actual monthly generation from each station. For Small Hydro Plants the petitioner has estimated the monthly availability based on only 2 years average of actual monthly generation (FY2011-12 & FY2012-13) because the plants were not operational during major part of the year due to floods in Uttarakhand in the FY 2013-14. The availability from UJVNL stations for FY 2015-16 is tabulated below:
Table 35: Projected availability from UJVNL Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Total LHP 225.55 311.25 312.80 307.54 335.00 346.68 271.96 179.67 201.39 171.90 183.14 236.80 3083.6
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Station Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Total MB-II 77.61 134.46 136.13 146.82 125.07 153.01 98.69 57.44 49.52 41.22 39.71 42.74 1102.4 SHP 13.04 12.05 11.16 10.65 9.19 11.95 8.55 7.52 10.13 9.36 7.69 10.50 121.80 Sub-Total 316.19 457.76 460.09 465.00 469.26 511.65 379.20 244.63 261.04 222.48 230.55 290.04 4307.9
Availability from NTPC Stations
4.38 The Petitioner has estimated the monthly availability from NTPC stations of Singrauli, Unchahar- I, II & III, NCT Dadri II& Rihand STPS I & II based on 3 years average of actual monthly generation from each station.
4.39 The Petitioner has estimated the monthly generation of Rihand STPS III same as that of FY2014-15 for the first six months & twice the quantum purchased till Sept 2014 for the complete year FY 2015-16 since the plant had started operations only in the middle of FY 2012-13 and has commissioned new units during FY 2013-14.
4.40 The monthly generation estimated for Gas Power Plants like Anta, Auraiya & Dadri has been done in similar manner to that of Rihand III as generation during FY 2014-15 shows the availability of gas in the current environment and this is expected to remain same during FY 2015-16.
4.41 The monthly generation for Kahalgaon-II & Jhajjar Aravalli is estimated to be same as that of the year FY 2013-14 as the former was not fully operational during most part of FY2011-12 & FY 2012-13 & the latter in FY 2011-12 & 2014-15 due to non- availability of coal.
4.42 The monthly generation from each station is taken based on the total share of each station in Uttarakhand. The availability from NTPC stations for FY 2015-16 is tabulated below:
Table 36: Projected availability from NTPC Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Singrauli Super 64.03 66.73 68.64 72.61 68.99 64.43 68.80 75.79 76.26 76.84 69.48 73.05 845.65 Thermal Power Feroze Gandhi 20.82 24.26 24.53 24.18 21.36 21.22 20.44 24.22 24.93 25.76 23.22 24.67 279.61 Unchahar-I Feroze Gandhi 10.55 12.64 9.85 12.40 10.98 11.58 10.88 12.14 13.05 12.64 11.41 12.50 140.62 Unchahar-II Feroze Gandhi 7.54 10.38 9.74 9.76 8.82 9.39 9.68 9.70 9.45 10.11 9.20 9.24 113.01 Unchahar-III National Capital 4.07 4.40 4.04 3.59 3.10 3.26 3.07 5.27 5.42 5.31 4.38 4.32 50.25 Thermal II: Dadri Rihand-1 STPS 31.09 31.34 27.55 27.32 25.52 28.54 27.61 22.69 28.60 29.93 27.70 30.44 338.32 Rihand-2 STPS 30.18 28.73 25.75 28.03 20.95 18.94 23.51 26.95 29.19 29.55 27.58 29.62 318.97 Rihand-3 STPS 25.86 23.28 26.61 21.44 14.44 22.91 25.86 23.28 26.61 21.44 14.44 22.91 269.08 Kahalgaon-II 6.77 13.25 18.63 19.48 17.46 14.16 18.15 18.69 19.12 19.60 16.41 19.62 201.33 Jhajjar Aravali 3.19 3.08 2.05 2.44 1.57 3.24 2.77 2.45 1.60 1.55 1.13 13.12 38.17 Anta Gas 9.24 1.56 7.67 4.97 6.37 5.53 9.24 1.56 7.67 4.97 6.37 5.53 70.67 Auraiya Gas 5.95 4.09 5.24 3.74 4.88 5.34 5.95 4.09 5.24 3.74 4.88 5.34 58.47 Dadri Gas 10.55 6.42 6.68 5.43 6.02 6.79 10.55 6.42 6.68 5.43 6.02 6.79 83.80
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Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Sub-Total 229.83 230.18 236.97 235.38 210.45 215.31 236.51 233.26 253.82 246.88 222.22 257.16 2807.97
Availability from NHPC Stations
4.43 The Petitioner has estimated the monthly energy availability from NHPC stations of Salal Chamera- I & II, Uri, Dulhasti & Sewa-II based on the average of three year monthly generation for the respective stations.
4.44 For Chamera-III the petitioner has estimated the monthly generation same as that of FY 2013-14 as the plant was fully operational only after FY 2012-13.
4.45 For NHPC station Dhauliganga, only two years average is considered because of non- functioning of the plant during major part of FY 2013-14.
4.46 Monthly estimation for new NHPC stations Uri- II & Parbati-III has been estimated by the Petitioner on the basis of Design Energy, auxiliary consumption & Uttarakhand’s share in power generated.
4.47 The availability from NHPC stations for FY 2015-16 is tabulated below:
Table 37: Projected availability from NHPC Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Salal 3.22 4.78 5.39 5.57 5.52 4.76 2.53 1.31 1.11 1.10 1.42 2.61 39.32 Tanakpur 0.47 1.00 1.62 2.10 2.30 2.22 2.13 1.07 0.61 0.39 0.34 0.14 14.40 State royalty 1.57 3.07 4.82 6.35 7.14 6.86 6.60 3.41 1.88 1.06 0.90 0.57 44.22 Power- TanakpurChamera I 7.77 11.03 10.52 13.08 13.73 10.52 4.18 2.59 1.56 1.76 2.77 5.46 84.95 Chamera II 1.30 2.06 2.32 2.58 2.70 2.15 1.19 0.70 0.54 0.49 0.52 1.03 17.58 Chamera III 1.91 6.95 8.69 9.38 9.60 5.80 3.30 1.58 1.16 0.66 0.67 2.07 51.77 Uri 11.66 12.43 11.98 10.66 7.77 9.36 5.18 3.28 2.91 3.05 5.55 10.88 94.71 Dhauliganga 2.34 5.47 7.46 9.67 9.11 8.03 4.13 2.33 1.83 1.52 1.30 1.74 54.93 State royalty Power- 5.81 13.39 18.55 24.15 22.84 20.49 9.95 5.71 4.38 3.54 3.05 4.06 135.91 Dhauliganga Dulhasti 9.07 13.53 13.24 13.47 13.27 13.76 11.31 5.96 4.73 3.15 1.88 4.80 108.17 Sewa II 3.68 3.50 2.16 1.49 3.57 2.55 1.03 0.47 0.35 0.86 2.56 4.27 26.49 Uri-II 9.73 10.06 5.37 4.76 5.27 3.23 1.79 2.39 1.77 2.30 3.43 9.21 59.30 Parbati-III 2.55 3.78 5.67 7.27 5.77 3.66 1.85 1.23 0.98 0.85 0.68 1.21 35.48 Sub-Total 61.08 91.04 97.79 110.52 108.59 93.39 55.18 32.04 23.79 20.71 25.06 48.04 767.22
Availability from THDC Stations
4.48 The Petitioner has estimated the monthly availability from Tehri HEP-I based on three years average of actual monthly generation.
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4.49 The Petitioner has however estimated the monthly availability from Koteshwer as same as that of FY2013-14 as the plant was fully operational only in FY 2013-14.
Table 38: Projected availability from THDC Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Tehri-I `7.87 8.57 9.07 14.87 22.35 16.40 7.11 5.56 7.71 9.32 7.44 8.28 124.55 State Royalty 28.73 31.68 32.90 53.45 77.16 59.57 26.38 20.44 27.72 32.13 25.46 28.47 444.09 Power -Tehri Koteshwer 3.05 3.90 7.97 10.24 11.76 5.45 3.61 2.73 3.26 3.66 3.27 3.94 62.84 State Royalty 10.04 12.29 23.04 29.22 31.68 15.23 10.08 8.07 9.56 10.77 9.46 11.30 180.75 Power- Koteshwar Total 49.69 56.45 72.97 107.78 142.9 96.66 47.17 36.79 48.25 55.87 45.64 51.98 812.23 5 Availability from SJVNL Stations
4.50 The Petitioner has estimated the monthly availability from Nathpa Jhakri station based on three years average monthly generation.
4.51 The estimated energy from Rampur station is estimated based upon Design energy, auxiliary consumption & Uttrarakhand’s share in power generated.
Table 39: Projected availability from SJVNL Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Nathpa Jhakri 2.58 5.22 6.02 7.34 8.09 6.49 3.61 2.32 1.86 1.60 1.41 1.87 48.40 Rampur 9.74 27.80 24.29 26.56 33.45 25.73 14.72 12.01 9.87 8.64 6.82 7.84 207.46 12.31 33.02 30.31 33.90 41.54 32.22 18.33 14.33 11.73 10.24 8.22 9.70 255.86
Availability from NPCIL Stations
4.52 The Petitioner has estimated the monthly availability from NPCIL stations based on three years average of actual monthly generation for each plant.
4.53 The monthly generation from each station is taken based on the total share of each station in Uttarakhand. The availability from NPCIL stations for FY 2015-16 is tabulated below:
Table 40: Projected availability from NPCIL Stations (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total NAPP 7.67 6.85 8.31 7.09 7.67 8.46 8.74 9.19 9.56 8.37 7.78 9.70 99.38 RAPP-5&6 13.32 11.43 11.49 10.87 14.27 15.23 14.17 13.93 13.90 13.49 13.23 16.76 162.12 Total 20.99 18.28 19.81 17.97 21.94 23.69 22.92 23.13 23.46 21.86 21.01 26.46 261.50
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Availability from Vishnu Prayag Hydro Electric Project
4.54 The Petitioner has estimated the monthly availability from Vishnuprayag station based on two years monthly generation of FY 2011-12 & FY 2012-13 as the plant was not operational during major part of FY 2013-14 due to floods.
4.55 The availability from Vishnuprayag station for FY 2015-16 is tabulated below:
Table 41: Projected availability from Vishnuprayag HEP (MU) Station Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total State royalty Power - 8.96 24.81 34.37 35.88 34.25 33.07 21.32 10.65 6.30 4.13 5.26 6.10 225.09 Vishnuprayag AvailabilityHP (only Free from Independent Power Producers (IPP) Stations power) 4.56 The Petitioner has estimated the monthly availability from IPP stations (except for Sasan) based on previous two or three years average of monthly generations depending upon operations & information provided by the developers.
4.57 The availability from Sasan has been extrapolated from FY 2014-15 assuming operation of five units against four in FY 2014-15.
4.58 The availability from IPP stations for the FY 2014-15 is tabulated below:
Table 42: Projected availability from IPP Stations (MU) Station Apr May Jun July Aug Sept Oct Nov Dec Jan Feb March Total Rajwakti SHP 1.20 1.23 1.73 1.23 1.11 1.48 2.19 2.26 1.58 1.27 1.21 1.28 17.76 Hanuman Ganga 1.06 0.86 1.43 1.85 2.15 2.60 2.58 1.71 1.08 0.86 0.73 1.09 18.00 DebalSHP 0.85 1.08 1.69 2.63 2.38 2.16 2.59 1.67 1.09 0.81 0.62 0.71 18.28 LoharKhet 0.97 0.97 1.60 2.33 2.73 2.90 2.94 1.84 1.26 0.97 0.92 1.22 20.66 Gunsola Hydro 1.01 1.03 0.95 1.64 1.78 1.99 1.97 1.19 0.84 0.62 0.65 1.05 14.71 Bhilangana(Swasti)Agunda Thati 3.22 4.54 4.03 10.55 12.88 15.51 10.24 4.97 2.92 2.24 2.49 3.96 77.55 Vanala 2.44 2.77 3.59 2.01 0.92 5.62 8.96 5.14 3.54 2.12 2.68 2.55 42.35 Motighat 0.66 1.18 1.29 0.71 0.91 1.41 1.92 1.70 1.16 0.81 0.71 1.06 13.54 Rishiganga 0.46 2.37 4.22 3.06 0.00 1.82 2.90 1.60 1.04 0.59 0.60 0.45 19.09 Birahi Ganga 0.89 1.72 1.54 3.06 4.34 4.45 3.71 1.82 1.33 0.95 0.63 0.93 25.36 Co-Gen: RBNS 3.63 0.00 0.00 0.00 0.00 0.00 0.00 0.85 4.40 9.35 8.17 9.65 36.05 CoSugar-Gen: Mill Uttam Sugar 1.75 0.00 0.00 0.00 0.00 0.00 0.00 0.87 5.09 5.09 3.99 4.72 21.51 CoMills-Gen: Lakshmi 6.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.42 7.46 8.12 7.95 38.36 Solar: RV Akash 0.28 0.29 0.24 0.21 0.23 0.24 0.25 0.22 0.16 0.14 0.19 0.30 2.75 Solar:Ganga Metro Frozen 0.12 0.11 0.10 0.09 0.09 0.11 0.11 0.09 0.07 0.06 0.08 0.13 1.15 Solar: Jay Ace 0.26 0.26 0.22 0.18 0.13 0.22 0.25 0.22 0.17 0.15 0.19 0.28 2.51 SasanTechnologies 28.93 27.76 37.7 44.64 44.56 40.07 28.93 27.76 37.7 44.6 44.5 40.07 447.40 Gangani 1.75 3.39 3.034 6.04 8.55 8.76 7.30 3.60 2.634 1.874 1.246 1.84 50.00
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Station Apr May Jun July Aug Sept Oct Nov Dec Jan Feb March Total Badiyar 0.88 1.69 1.52 3.02 4.27 4.38 3.65 1.80 1.31 0.93 0.62 0.92 25.00 Sub-Total 65.74 76.05 99.2 119.1 121.2 126.7 101.8 69.97 82.1 85.0 83.6 86.27 1117.12 9 4 7 8 2 5 3 2 New stations
4.59 There are several new projects that are expected to be commissioned during FY 2014-15 and FY 2015-16. For these stations, projections of power availability has been projected as detailed below:
a) The expected COD has been taken from various sources like latest CEA reports, PPA signed with the generation companies and as per information made available by the generators;
b) Power availability after COD has been projected taking into account norms of auxiliary consumption, expected PLF and Uttarakhand’s share in power generated.
c) PLF and auxiliary consumption for upcoming stations has considered as per the parameters detailed in the table below:
Table 43: PLF & Auxiliary Consumption for upcoming Stations Type of Station PLF Auxiliary consumption Thermal Stations 85% 9% Hydro stations 45% 1% Solar PV 19% 0% Biomass 80% 10% SHP 40% 1%
4.60 The estimated availability from upcoming stations has been projected as under:
Table 44: Projected Availability for Upcoming Stations Station Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Total
NTPC-Koldam 3.76 4.81 9.81 12.62 14.48 6.71 4.45 3.36 4.02 4.51 4.03 4.85 77.40 NTPC- Barh 17.39 22.23 45.35 58.31 66.95 31.01 20.56 15.51 18.56 20.83 18.64 22.43 357.77 Jalandharigad SHP 0.81 1.03 1.60 2.49 2.26 2.05 2.46 1.58 1.03 0.77 0.58 0.68 17.34 Siyangad SHP 0.81 1.03 1.60 2.49 2.26 2.05 2.46 1.58 1.03 0.77 0.58 0.68 17.34 Kakoragad SHP 0.81 1.03 1.60 2.49 2.26 2.05 2.46 1.58 1.03 0.77 0.58 0.68 17.34 Supplementary TANGA 0.81 1.03 1.60 2.49 2.26 2.05 2.46 1.58 1.03 0.77 0.58 0.68 17.34 UREDA-Solar Plant 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.01 0.01 0.08 Avani(Dehradun) Bio Energy Pvt. 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.09 0.20 0.17 0.20 0.76 UREDALtd. -Avani-Kanwasharam Bio Energy 0.02 0.02 0.03 0.05 0.05 0.04 0.05 0.03 0.02 0.02 0.01 0.01 0.35 Pvt.UREDA Ltd.- Toli 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.17 UREDA-Gulari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 UREDA-Kanolgad 0.02 0.02 0.03 0.05 0.05 0.04 0.05 0.03 0.02 0.02 0.01 0.01 0.35
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Station Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Total UREDA-Lathi 0.02 0.02 0.03 0.05 0.05 0.04 0.05 0.03 0.02 0.02 0.01 0.01 0.35 UREDA-Bursol 0.03 0.04 0.06 0.10 0.09 0.08 0.10 0.06 0.04 0.03 0.02 0.03 0.69 UREDA-Milkhet 0.02 0.02 0.03 0.05 0.05 0.04 0.05 0.03 0.02 0.02 0.01 0.01 0.35 Sarju III 1.28 2.47 2.21 4.40 6.23 6.38 5.32 2.62 1.91 1.36 0.90 1.34 36.42 Sub- Total 25.85 33.75 63.99 85.64 97.00 52.59 40.50 28.04 28.85 30.08 26.17 31.64 544.10
4.61 On the basis of the above mentioned projections from external and internal sources of Uttarakhand (Excl Short-term purchases), the energy to be purchased by Uttarakhand has been projected at 10892.33 MU (Ex-bus) for FY 2015-16.
Transmission losses
4.62 Inter-state transmission losses and intra-state transmission losses for FY 2015-16 have been considered as 4% and 1.82% respectively which is in line with the transmission losses approved by the Hon’ble Commission in the Tariff order for FY 2014-15.
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Particulars Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total Gross energy procured from outside the state sources (MU) 433 509 585 657 686 572 455 397 428 430 395 467 6012 Inter-state transmission losses (%) 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Inter-state transmission losses (MU) 19 22 26 29 30 25 20 18 19 20 18 21 266 Net energy available from outside the state (MU) 414 487 559 628 656 547 435 379 408 410 376 446 5746 Add: energy generated within the 350 489 497 520 530 582 447 286 308 266 270 336 4880 state (MU) Net energy available for use in the state (MU) 764 975 1056 1148 1185 1129 882 665 716 676 646 782 10626 Intra-state transmission losses (%) 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82% 1.82%
Intra-state transmission losses (MU) 14 18 19 21 22 21 16 12 13 12 12 14 193 Energy available for sale to distribution licensee (MU) 750 958 1037 1127 1164 1109 866 653 703 663 634 768 10432
Particulars Apr May June July Aug Sept Oct Nov Dec Jan Feb March Total
Sales (MU) 813 844 855 900 858 867 873 842 870 926 873 840 10361 Distribution Loss (%) 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34% 17.34%
Energy requirement at 983 1021 1034 1089 1038 1048 1056 1019 1053 1120 1056 1016 12534 DISCOM periphery (MU)
Power to be procured from short term purchase at Discom 233 63 0 0 0 0 190 365 350 457 422 249 2329 Periphery (MU) Surplus Power at Discom 0 0 3 39 126 60 0 0 0 0 0 0 227 Periphery (MU)
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Procurement of deficit power and adjustment of surplus power
4.63 The availability from the existing stations and upcoming stations shall not be sufficient to meet the ever-increasing demand of the state. Therefore, the Petitioner has to rely on other sources to meet the demand of the state. Accordingly, the Petitioner has projected monthly purchase of power through open market in power deficit months of FY 2015-16. Also there are months in which the utility is power surplus; therefore it is proposed to sale the surplus power.
Projection of Power Purchase Cost
4.64 The cost of power available from various sources has been projected by UPCL considering the following:
Cost of Power from UJVNL stations
4.65 The tariff considered for FY 2015-16 for UJVNL Stations is same as that of tariff determined for the year FY 2014-15 by UERC. The Petitioner prays to the hon’ble Commission that UJVNL tariff approved by the Commission for FY 2015-16 may be considered by the Commission as tariff for UJVNL.
Cost of power from NTPC Stations
4.66 The cost of power available from NTPC stations has been projected based on the following assumptions:
a) Annual fixed charges have been derived (in proportion to UPCL’s share) from the relevant Tariff Orders issued by CERC applicable for FY14. Since CERC (terms and Conditions of Tariff) Regulations, 2009 is applicable from FY 2009-14, fixed cost for FY 15 & 16 was not available, therefore the cost approved in FY2013-14 has been increased by 5% each year to determine the fixed cost for FY 2015-16.
b) The variable cost including other charges for FY 2015-16 is based upon the actual variable cost incurred up to September 2014 by UPCL, and an escalation of 5% has been applied on the same to arrive at the projected variable cost for FY 2015- 16.
Cost of power from NHPC Stations
4.67 The cost of power available from NHPC stations has been projected based on the following assumptions:
a) Annual fixed charges (AFC) as specified in the respective CERC tariff orders has been considered. Since CERC (terms and Conditions of Tariff) Regulations, 2009 is applicable from FY 2009-14, fixed cost for FY 16 was not available, therefore UPCL has considered fixed cost for FY 16 after taking 5% escalation twice on the
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fixed cost determined by CERC for FY 14.
b) In line with the CERC (Terms & Conditions of Tariff) Regulations, 2009, the annual charges for each station have been bifurcated into two components – a fixed capacity charge equivalent to 50% of the specified AFC (after deducting the state royalty share of power, if any) and energy charges calculated by dividing the remaining 50% of the AFC by the design energy of the plant. The net charges payable have been derived after deducting the state royalty share of power.
Cost of power from NPCIL Stations
4.68 For NPCIL plants, same actual single part tariff has been considered which has been taken from the power purchase cost for the first six months for FY 2014-15.
Cost of power from THDC Stations
4.69 The cost of power available from THDC stations has been projected based on the following assumptions:
a) Annual fixed charges (AFC) as specified in the respective CERC tariff orders/monthly bills has been considered. . Since CERC (terms and Conditions of Tariff) Regulations, 2009 is applicable from FY 2009-14, fixed cost for FY 16 was not available, therefore UPCL has considered fixed cost for FY 16 after taking 5% escalation twice on the fixed cost determined by CERC for FY 14.
b) In line with the CERC (Terms & Conditions of Tariff) Regulations, 2009, the annual charges for each station have been bifurcated into two components – a fixed capacity charge equivalent to 50% of the specified AFC (after deducting the state royalty share of power, if any) and energy charges calculated by dividing the remaining 50% of the AFC by the design energy of the plant. The net charges payable have been derived after deducting the state royalty share of power.
Cost of power from SJVNL Stations
4.70 The cost of power available from NJHEP station has been projected based on the following assumptions:
a) Annual fixed charges (AFC) as specified in the respective CERC tariff orders/power purchase bill has been considered. Since CERC (terms and Conditions of Tariff) Regulations, 2009 is applicable from FY 2009-14, fixed cost for FY 16 was not available therefore UPCL has considered fixed cost for FY 16 after taking 5% escalation twice on the fixed cost determined by CERC for FY 14.
b) In line with the CERC (Terms & Conditions of Tariff) Regulations, 2009, the annual charges for each station have been bifurcated into two components – a fixed capacity charge equivalent to 50% of the specified AFC (after deducting the
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state royalty share of power, if any) and energy charges calculated by dividing the remaining 50% of the AFC by the design energy of the plant. The net charges payable have been derived after deducting the state royalty share of power.
c) A constant per unit rate of Rs.5 has been considered by the Petitioner for SJVNL Rampur station.
Cost of power procured from IPPs, Private Projects
4.71 The cost of power available from IPPs and other private stations are as per tariff determined by UERC.
Cost of State royalty power
4.72 The cost of state royalty power has been calculated separately for each year based on the approach adopted by the Commission in its MYT Order i.e. the rate of state royalty power has been considered equal to the average rate of power procured by the Petitioner from large hydel stations. Based on the said approach the rate of state royalty power has been projected as under:
Table 45: Rate of state royalty power (Rs/kWh) Particulars Quantum (MU) Cost (Rs Cr) Rate(Rs/kWh) UJVNL-Main stations 3083.69 319.57 1.04 MB-II 1102.40 198.41 1.80 NHPC 563.61 193.87 3.44 Tehri-I 119.57 48.50 4.06 Koteshwer 60.33 21.70 3.60 SJVNL 245.63 112.44 4.58 Total 5175.23 894.50 1.73
Cost of power from New stations
4.73 For projects which are under development by the private developers, the rate has been projected based on the PPA/relevant regulations/vide various communication help with the promoter and as per tariff determined by UERC.
4.74 For other thermal generating stations and large hydro plants developed by central sector, the rate is considered equivalent to Rs 5.00/kWh.
Cost of power from short-term sources
4.75 The Petitioner has proposed to procure deficit power through open market purchase arrangement, at a constant rate of Rs.4.00 per unit, accordingly, cost has been considered for power being procured through such arrangement. Similarly sale of surplus power has also assumed @ Rs 4.00 per unit.
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Total Power purchase Cost for FY 2015-16
4.76 The summary of power purchase cost and quantum (at state periphery) for FY 2015- 16 based on the above methodology is detailed in the table below:
Table 46: Projection of power purchase cost for FY 2015-16 Name of the station Power purchase Total Cost (Rs Average Rate at state periphery Cr) (Rs/kWh) (MU) NTPC Singrauli Super Thermal Power 811.83 175.85 2.17 Feroze Gandhi Unchahar-I 268.43 113.57 4.23 Feroze Gandhi Unchahar-II 135.00 58.64 4.34 Feroze Gandhi Unchahar-III 108.49 51.39 4.74 National Capital Thermal II: Dadri 48.24 25.72 5.33 Rihand-1 STPS 324.79 98.58 3.04 Rihand-2 STPS 306.21 99.05 3.23 Rihand-3 STPS 258.32 94.01 3.64 Kahalgaon-II 185.22 119.91 6.47 Jhajjar Aravali 36.65 24.93 6.80 Anta Gas Power Station 67.84 32.88 4.85 Auraiya Gas Power Station 56.13 34.52 6.15 Dadri Gas Power Station 80.44 44.86 5.58 Sub-Total 2687.59 973.91 3.62 NHPC Salal 2631.4937.74 3.82 1.01 Tanakpur 13.82 3.97 2.87 State royalty Power-Tanakpur 42.45 7.34 1.73 Chamera I 81.55 14.88 1.83 Chamera II 16.87 5.10 3.02 Chamera III 49.70 18.00 3.62 Uri 90.92 15.09 1.66 Dhauliganga 52.73 15.20 2.88 State royalty Power-Dhauliganga 130.47 22.55 1.73 Dulhasti 103.84 64.38 6.20 Sewa II 25.44 15.23 5.99 Uri II 56.92 21.15 3.72 Parbati Stage III 34.07 17.03 5.00 Sub-Total 736.53 223.76 3.04 UJVN Large Hydro 3083.69 319.57 1.04 Maneri Bali-II 1102.40 198.41 1.80 Small Hydro 121.80 19.98 1.64 Sub-Total 4307.90 537.96 1.25 SJVNL Nathpa Jhakri 46.46 12.86 2.77 Rampur 199.17 99.58 5.00
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Name of the station Power purchase Total Cost (Rs Average Rate at state periphery Cr) (Rs/kWh) (MU) Sub-Total 245.63 112.44 4.58 THDC Tehri HEP I 119.57 48.50 4.06 State royalty Power-Tehri HEP I 426.32 73.69 1.73 Koteshwar 60.33 21.70 3.60 State royalty Power-Koteshwer 173.52 29.99 1.73 Sub-Total 779.74 173.88 2.23 NPCIL Narora APP 95.41 25.50 2.67 Rajasthan APP 155.64 57.97 3.72 Sub-Total 251.04 83.48 3.33 UREDA Bhikuriya Gardh 1.75 0.50 2.83 Ramgarh 0.18 0.05 2.65 Barar+Garaun 2.73 0.84 3.07 Taleshwar 2.10 0.65 3.07 Charandev 2.10 0.65 3.07 Harsil 0.70 0.22 3.07 Tharali 4.38 1.42 3.24 Badrinath 4.38 1.34 3.07 Sub-Total 18.33 5.65 3.08 IPPs IPP: Rajwakti Him Urja SHP 17.76 5.05 2.85 Hanuman Ganga SHP 18.00 5.92 3.29 State royalty Power-Vishnuprayag 216.08 37.35 1.73 Debal 18.28 6.33 3.46 LoharKhet 20.66 6.80 3.29 Gunsola Hydro Agunda Thati 14.71 5.50 3.74 Bhilangana(Swasti) 77.55 28.31 3.65 Vanala 42.35 16.09 3.80 Motighat 13.54 5.55 4.10 Rishiganga 19.09 7.54 3.95 Birahi Ganga 25.36 10.36 4.09 Co-Gen: RBNS Sugar Mill 36.05 8.15 2.26 Co-Gen: Uttam Sugar Mills 21.51 4.86 2.26 Co-Gen: Lakshmi Sugar Mills 38.36 20.71 5.40 Solar: RV Akash Ganga 2.75 1.56 5.67 Solar: Metro Frozen 1.15 0.65 5.67 Solar: Jay Ace Technologies 2.51 1.42 5.67 Sasan 411.61 54.37 1.32 Gangani 50.00 20.09 4.02 Badiyar 25.00 10.05 4.02 Sub-Total 1072.32 256.67 2.39 New stations
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Name of the station Power purchase Total Cost (Rs Average Rate at state periphery Cr) (Rs/kWh) (MU) NTPC-Koldam 74.31 37.15 5.00 NTPC Barh 343.45 171.73 5.00 Hersil Hydro Limited- Jalandharigad 17.34 8.24 4.75 SHP Hersil Hydro Limited- Siyangad SHP 17.34 8.24 4.75 Hersil Hydro Limited-Kakoragad SHP 17.34 8.24 4.75 Himalaya Hydro Pvt. Ltd.-TANGA 17.34 8.24 4.75 UREDA-Solar Plant (Dehradun) 0.08 0.01 1.70 Avani Bio Energy Pvt. Ltd. -Avani Bio 0.76 0.37 4.88 Energy UREDAPvt. Ltd.- Kanwasharam 0.35 0.16 4.75 UREDA-Toli 0.17 0.08 4.75 UREDA-Gulari 0.03 0.02 4.75 UREDA-Kanolgad 0.35 0.16 4.75 UREDA-Lathi 0.35 0.16 4.75 UREDA-Bursol 0.69 0.33 4.75 UREDA-Milkhet 0.35 0.16 4.75 Sarju-III 36.42 16.46 4.52 Sub total 526.69 259.77 4.93 Total power from firm sources 10625.78 2627.52 2.47 Others Less: Sale of Surplus power 231.51 92.61 4.00 Add: Procurement of power through short term power purchase 2372.11 948.84 4.00
Grand-Total 12766.38 3483.76 2.73
Inter-state and Intra-state Transmission Charges
4.77 The transmission charges for FY 15-16 have been projected based on the following assumption:
a) Inter-state transmission charges have been calculated in the following manner- The actual per MU PGCIL Charge for FY 2013-14 has been calculated. The per MU rate thus calculated is escalated by 4% and multiplied by the projected power purchase quantum for FY 2015-16 to arrive at the total estimated PGCIL charges.
b) Intra-state transmission charges have been considered same as ARR approved by the Commission for PTCUL for FY 2014-15. The Petitioner prays to the hon’ble Commission that PTCUL tariff approved by the Commission for FY 2015-16 may be considered by the Commission as tariff for PTCUL.
Capital Expenditure Plan
4.78 The need for capital expenditure in UPCL is for two primary reasons:
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a) Increase in electricity demand makes it essential for the Petitioner to make investments in procuring power to meet the demand and also prepare its distribution infrastructure for evacuating the increasing power that shall be procured and subsequently distributed to its growing consumers.
b) Making investments to facilitate loss reduction, increase operational efficiency through IT and automation to improve the quality and reliability of supply.
4.79 The Commission in its MYT Order, 2013 has approved the capital expenditure amounting to Rs 360.47 Cr in each year of the Control Period. The Commission has mentioned that the Petitioner has not got the Capital expenditure schemes approved by the Commission and in the absence of cost benefit analysis; the Commission has approved the capital expenditure on average basis. However, the Commission will analyse the capital expenditure plan in detail once the Petitioner submits scheme wise details while conducting the annual performance review.
4.80 The details of Capital Investments made during last five years are as follows:
Year Rs Cr. 2009-10 250.71 2010-11 264.99 2011-12 301.94 2012-13 256.97 2013-14 313.84 Total 1388.45
4.81 Capital expenditure for FY 2014-15 and FY 2015-16 has been projected based on the scheme-wise capital expenditure. The phasing of the proposed capital expenditure plan is depicted in the Table below:
Table 47: Capital Expenditure to be incurred during the year (Rs Cr) Particulars Capex FY 2014-15 FY 2015-16 REC Scheme 262.52 106.72 155.80 Devi Aapda 17.20 17.20 APDRP-Part A 42.77 9.86 32.91 R-APRDRP- Part B 512.63 108.63 404.00 Other Capital expenditure 503.93 176.18 217.74 Total 1229.05 418.60 810.45
Proposed Capital expenditure and Capitalization
4.82 The Proposed Capital expenditure for FY 2014-15 and FY 2015-16 works out to Rs 418.60 Cr and Rs 810.45 Cr respectively.
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4.83 Opening CWIP for FY 2014-15 equivalent to Rs 697.90 Cr has been capitalised within a span of two years.
4.84 The Petitioner has estimated that the capital expenditure proposed in FY 2014-15 and FY 2015-16 would be capitalised within two years from the year in which the expenditure has been incurred.
4.85 Based on the above capital expenditure plan, the capitalization for FY 2014-15 and FY 2015-16 is provided in the Table below:
Table 48: Capex and Capitalisation (In Rs Cr) Particulars Capex FY 2014-15 FY 2015-16 Opening CWIP 697.90 348.95 348.95 Capital expenditure for FY 2014-15 418.60 209.30 209.30 Capital expenditure for FY 2015-16 810.45 0.00 405.23 Total 558.25 963.47
4.86 The funding of RAPDRP- Part A has been considered as entirely funded through debt and for RAPDRP- Part B, 90% has been considered as funding through grant and remaining 10% from Loan.
4.87 The remaining capital expenditure is proposed to be funded either through debt or equity which has been assumed at 70: 30.
Table 49: Total Capital Expenditure and Financing plan
Sr. No. Particulars FY 2014-15 FY 2015-16
1 Capital Expenditure amount 418.60 810.45 2 Financing
Debt 215.73 326.56
Equity-State Govt./Internal accrual 87.90 120.29
Grant-State Govt. 17.20
Grant-Central Government 97.77 363.60
3 Total 418.60 810.45
Interest on Loan Capital
4.88 The Petitioner has computed interest expenses based on the existing loans and new loans proposed for funding the capital expenditure.
4.89 For existing loans, interest has been separately calculated for each loan based on the arrangement with the funding agency from which the loan has been taken. For any amount that is to be received in the existing scheme during the year has been covered under existing loans.
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4.90 For new loans, the utility has assumed that the funding agency would be REC and PFC. New loans have been considered with 3 years moratorium, 10 years repayment period and 13% rate of interest. The same is in line with existing arrangement of loans with REC and PFC. Loan-wise details has also been furnished in the Format- 7.3 submitted along with this Petition.
4.91 The Petitioner has also claimed Guarantee fee of Rs 2.20 Cr which is the fees payable by the utility to the state government in the FY 2014-15 & FY 2015-16.
4.92 The table below details the projected interest expenses claimed by UPCL for the FY 2015-16:
Table 50: Projected interest expenses (Rs Cr) Year FY 2014-15 FY 2015-16 Interest on existing loans 89.42 84.98 Interest on new loans 13.48 47.38 Sub-total 102.90 132.35 Guarantee Fees 2.20 2.20
Interest on consumer security deposit
4.93 Interest on consumer security deposit has been projected based on enhancement of load in each year as was projected in the MYT Petition. Interest on Consumer Security Deposit for each year has been considered at the average of opening and closing balance of Consumer Security Deposit @ 9.00%.
Table 51: Interest on Consumer Security Deposit (Rs.Cr) Year FY 2014-15 FY 2015-16 Opening Balance of Security Deposit 505.41 534.35 Estimated Addition during the year 28.94 31.61 Closing balance of Security Deposit 534.35 565.95 Average Balance of Security Deposit 519.88 550.15 Interest Rate 9.0% 9.0% Interest on Security Deposit 46.79 49.51
Return on equity
4.94 As per UERC MYT Regulations, 2011, equity has to be calculated on post tax basis at 16%. Accordingly, UPCL has computed RoE at 16% on the average equity. The opening equity for FY 2015-16 has been considered based on the closing equity for FY 2014-15 which has been projected based on the opening and closing equity for FY 2013-14.The addition in equity in each year is based on the funding pattern projected for investing in the capital expenditure plan.
4.95 The table below details the computation of equity for FY 2014-15 and FY 2015-16:
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Table 52: Projected Return on equity (Rs.Cr) Year FY 2014-15 FY 2015-16 Opening Equity 1170.87 1258.76 Additions 87.90 120.29 Closing Equity 1258.76 1379.05 Average Equity 1214.82 1318.91 Rate of Return (%) 16.00% 16.00% Return on equity 194.37 211.03
Operation and maintenance expenses
4.96 According to 'Uttarakhand Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2011, O&M ('Operation & Maintenance') expenses for the nth year shall comprise of the following components.
a) R&Mn: Repairs and maintenance expenses
b) EMPn: Salaries, wages, pension contribution and other employee costs
c) A&Gn: Administrative and general expenses including insurance charges if any
O&Mn = R&Mn + EMPn + A&Gn
Where, O&Mn – Operation and Maintenance expense for the nth year; EMPn – Employee Costs for the nth year; R&Mn – Repair and Maintenance Costs for the nth year; A&Gn – Administrative and General Costs for the nth year.
Projection of Employee Costs (EMPn)
4.97 As specified in Clause 84 (4) of 'Uttarakhand Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2011', employee costs for the nth year and also for the year preceding the Control Period will be calculated as per the method given below.
EMPn = (EMPn-1) x (1+Gn) x (CPIinflation)
Where - EMPn-1 : Employee Costs for the (n-1) th year; CPIinflation: is the average increase in the Consumer Price Index (CPI) for immediately preceding three years;
Gn is a growth factor for the nth year. Value of Gn shall be determined by the Commission in the MYT tariff order for meeting the additional manpower requirement based on Distribution Licensee’s filings, benchmarking and any other factor that the Commission feels appropriate. 4.98 The Petitioner has followed the same approach as the one followed in the true-up section above to calculate the Employee Expenses for FY 2014-15 & FY 2015-16.
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4.99 In the MYT order dated 6th May, 2013 the Commission for approval of Employee Expenses has adopted the following approach:
“For estimating the employee expenses for the Control Period, the Commission first analysed the employee cost for existing employees of last five years for the period FY 2007-08 to FY 2011-12 based on the actual employee expenses as submitted in the Audited Accounts. However, the employee expenses for FY 2007-08 and FY 2008-09 were substantially lower than the employee expenses for FY 2009-10 to FY 2011-12 on account of implementation of Sixth Pay Commission recommendation during the latter period. Hence, the Commission analysed the employee cost for existing employees of three years from FY 2009-10 to FY 2011-12. However, on analysis of the employee expenses, the Commission observed that the employee expenses for FY 2012-13 as estimated in accordance with the provisions of UERC Regulations, 2011 based on the average of actual three years employee expenses is working out to be lower than the actual annualized employee expenses for FY 2012-13 based on the MTB upto October, 2012. Therefore, for projecting Gross Employee Expenses and Capitalisation of Employee Expenses for FY 2012-13 and Control Period for FY 2013-14 to FY 2015-16, the Commission has considered the actual employee expenses for FY 2011-12 as base year for projecting the employee expenses for the Control Period after adjusting for the arrears paid towards the implementation of Sixth Pay Commission in FY 2011-12.”
4.100 The Commission had not considered the employee expenses for FY 2012-13 for projecting the employee expenses for the each year of the MYT control Period. However, the actual employee expenses for FY 2012-13 based on the audited account is now available. Actual gross and net employee expenses for FY 2012-13 are Rs 257.98 Cr and Rs 222.76 Cr respectively. This has also been approved by the Commission in the Tariff Order for UPCL for FY 2014-15.
4.101 The Petitioner has considered employee expenses for FY 2012-13 as the base year and projected the employee expenses for each year of the MYT Period based on the UERC tariff Regulations 2011.
4.102 The Petitioner would like to bring it to the notice of the Hon’ble Commission that it had to bear the responsibility of paying enhanced pension. This is on account of pay revision in third time scale with effect from 01.01.1996 due to which pension and family pension was revised for the employees who retired between 01.01.1996 to 20.07.2010. Treasury department of Uttarakhand refused to disburse pension on enhanced pay as they did not get contribution on this account. GoU vide GO No. 85 dated 07.07.2011 stated that the pension/family pension is not allowed on presumptive pay.
4.103 On February 5, 2013, Additional Secy (energy) vide letter no. 173 directed UPCL to release enhanced pension from their own fund. Hence, in accordance with the directions of GoU, UPCL has started paying enhanced pension to the employees who retired during 01.01.1996 to 20.07.2010.
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4.104 The actual impact of enhanced pension for FY 2013-14 was Rs 17.23 Cr. Since enhanced pension was not part of the base employee expenses i.e. employee expenses for FY 2012- 13, this has been considered additionally in FY 2013-14 and increased in FY 2014-15 and FY 2015-16 by the same factors as other employee expenses.
4.105 In addition to above cost, additional expenses incurred on account of new allowances has been considered as a part of employee expenses. UPCL has increased the value of certain allowances such as Motor Cycle Allowance, Conveyance Charges, Cycle Allowance, Washing Allowance, Distribution Profit Incentive Allowance, Bi-Lingual Allowance etc w.e.f. August 1, 2013. The additional cost on account of such expenses was Rs 0.63 Cr in FY 2013-14 and Rs 0.94 Cr for FY 2014-15 and FY 2015-16.
4.106 The details of total employee costs projected for FY 2014-15 and FY 2015-16 are shown in the table below.
Table 53: Projected Employee Costs (Rs Cr) for FY 2013-14, FY 2014-15 and FY 2015-16 taking FY 2012-13 as base expenses Components FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Gross Employee Expenses 257.98 299.55 347.03 402.08 Inflation Factor (3 years avg.)(CPI) 9.76% 9.50% 9.50% Growth Factor(Gn) 5.79% 5.80% 5.81% Enhanced Pension 17.23 18.87 20.66 Additional Allowance 0.63 0.94 0.94 Total Employee Expenses 317.41 366.84 423.87 Less: Capitalisation 38.47 57.67 66.80 Net Employee Expenses 278.94 309.17 357.07
Projection of Administrative and General Expenses (A&Gn)
4.107 According to the Multi-year Tariff Regulations, 2011 of the Commission, administrative and general expenses for the nth year and also for the year preceding the Control Period will be calculated as per the method given below.
A&Gn = (A&Gn-1) x (WPIinflation) + Provision
Where A&Gn-1: Administrative and General Costs for the (n-1) th year; WPI inflation: is the average increase in the Wholesale Price Index (WPI) for immediately preceding three years; Provision: Cost for initiatives or other one-time expenses as proposed by the Distribution Licensee and approved by the Commission after prudence check.
4.108 The Net A&G Expenses as approved by the Commission in its MYT Order has been shown below:
Table 54: Projected A&G Expenses (Rs Cr) for FY 2014-15 and FY 2015-16 (In Rs Cr)
Components FY 2014-15 FY 2015-16 Net A&G Expenses 24.79 27.57
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4.109 The Petitioner has considered the same A&G Expenses for FY 2014-15 & FY 2015-16 as approved by the Commission in the MYT Order 2013.
Projection of Repair and Maintenance Expenses (R&Mn)
4.110 As per Clause 84 (4) of 'Uttarakhand Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2011', repair and maintenance expenses for the nth year and also for the year preceding the Control Period will be calculated as per the method given below.
R&Mn = K x (GFAn-1) x (WPIinflation)
4.111 Where -‘K’ is a constant specified by the Commission in %. Value of K for each year of the control period shall be determined by the Commission in the MYT Tariff order based on Distribution Licensee’s filing, benchmarking of repair and maintenance expenses, approved repair and maintenance expenses vis-à-vis GFA approved by the Commission in past and any other factor considered appropriate by the Commission; GFAn-1 : Gross Fixed Asset of the Distribution Licensee for the (n-1) th year.
4.112 The Petitioner in this petition has considered the R&M Expenses for FY 2014-15 & FY 2015-16 as approved by the Commission in its MYT Order 2013. The details of the same are given below:
Table 55: Projected R&M Expenses (Rs Cr) for FY 2014-15 and FY 2015-16 (In Rs Cr) Components FY 2014-15 FY 2015-16 Net R&M Expenses 119.56 152.41
Total Operation and Maintenance Expenses
4.113 Recruitment for sanctioned posts and additional posts in the near future and new initiatives (such as meter testing which should have been done much earlier) and provisions (such as increase in collection centres, call centres) under administrative and general expenses will impact the total operation and maintenance expenses projected for the Control Period.
4.114 Summary of projected total operation and maintenance expenses is given in the table below.
Table 56: Total Operating and Maintenance Expenses (Rs Cr) for FY 2014-15 and FY 2015-16 Components FY 2014-15 FY 2015-16 Repair & Maintenance Expenses 119.56 152.41 Administrative & General Expenses 24.79 27.57 Employee Costs 309.17 357.07 Total 453.52 537.05
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Provision for Bad Debts
4.115 As per UERC, MYT Regulations 2011, the Commission shall allow a provision for bad and doubtful debts upto one percent (1%) of the estimated annual revenue of the distribution licensee, subject to actual writing off bad debts by it in the previous years.
4.116 The Commission in its MYT Order has not allowed any provision for bad debts in the absence of actual writing off bad debts exercise.
4.117 The Commission in its MYT Order, 2013 has approved collection efficiency of 98.50% for FY 2015-16. Based on this, the Petitioner requests the Hon’ble Commission to approve bad debts @ 1.50% of estimated revenue. Although, in compliance to the approach followed by the Commission, bad debts have not been included as a part of ARR. The Petitioner requests the Commission request the Hon’ble Commission to allow this amount.
4.118 The table below details the provision for bad debts for FY 2015-16.
Table 57: Provision for bad debts (Rs. Cr)
Year FY 2015-16 Approved Collection efficiency (%) 98.50% Bad debts (%) 1.50% Projected revenue at proposed tariff (Rs Cr) 5443.73 Provision for bad debt 81.65
Depreciation
4.119 The utility has computed depreciation based on the projected gross fixed assets for each year. Average depreciation rate has been assumed as the depreciation rate (@5.20%) approved by the Commission in the MYT Order dated 6th May 2013.
4.120 The table below details the depreciation projected by the Utility for the FY 2015-16.
Table 58: Depreciation (Rs. Cr) Year FY 2014-15 FY 2015-16 Opening GFA 2161.43 2719.68 Additions 558.25 963.47 Closing GFA 2719.68 3683.15
Opening grant 0.00 97.77 Addition Grant 97.77 363.60 Closing Grant 97.77 461.37
Opening GFA less grant 2161.43 2621.91 Addition GFA less Grant 460.48 599.87
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Year FY 2014-15 FY 2015-16 Closing GFA less grant 2621.91 3221.78 Average rate of depreciation 5.20% 5.20% Depreciation 124.37 151.94
Interest on Working Capital
4.121 As per clause 34 (a) (i) of the UERC Tariff Regulations, 2011, the distribution licensee shall be allowed an interest on the estimated level of working capital for the financial year, computed as follows:
a) One month of the amount of Operation and Maintenance expenses for such financial year; plus
b) Maintenance spares @ 15% of operation and maintenance expenses; plus
c) Two months equivalent of the expected revenue from sale of electricity at the prevailing tariffs; minus
d) Amount held as security deposits under clause (a) and clause (b) of sub-section (1) of Section 47 of the Act from consumers and Distribution System Users; minus
e) One month equivalent of cost of power purchased, based on the annual power procurement plan.
4.122 As per clause 34 of the UERC Tariff Regulations, 2011, Rate of interest on working capital shall be on normative basis and shall be equal to the State Bank Advance Rate (SBAR) of State Bank of India as on the date on which the application for determination of tariff is made.
4.123 Based on the above, the utility has calculated interest on working capital considering the above parameters and taking interest rate as 14.50%, which is the prevailing SBAR. The detailed computation of interest on working capital is provided hereunder:
Table 59: Projected interest on working capital (Rs. Cr) Year FY 2014-15 FY 2015-16 One month O&M expense 37.79 44.75 Add: Maintenance spares @ 15% of O&M 68.03 80.56 Add: 2 months of expected revenue @ prevailing tariff 778.92 907.20 Minus:Amount held as security deposit 519.88 550.15 Minus:One month of PP cost 317.93 337.32 Total 46.94 145.05 Interest Rate 14.50% 14.50% Interest on working capital 6.81 21.03
Non-Tariff Income
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4.124 The Petitioner in the MYT Petition had calculated the Non-Tariff income for each year of the Control Year has been calculated by considering an escalation of 5% over the actual Non-Tariff Income of FY 2013-14.
Table 60: Projected NTI (Rs. Cr) Particulars FY 2014-15 FY 2015-16 Delayed payment surcharge 0.00 0.00 Miscellaneous Receipts 8.68 9.12 Rebate/Incentives 25.68 26.97 Misc. Income from Staff Welfare Activities 0.13 0.14 Interest on Deposits 56.34 59.15 Total 90.84 95.38
Liability towards UJVNL
4.125 UJVNL has filed a petition before this hon’ble Commission for directing UPCL to make the payment of their claim of Rs 591.21 Cr as detailed below:
a) Revision of Tariff Orders and reconciliation of energy – Rs 105.99 Cr
b) Income tax Rs 45.97 Cr
c) Capacity Charges and capacity index incentive – Rs 64.10 Cr
d) Cess and royalty – Rs 375.23 Cr
4.126 This Petition has been admitted by the Hon’ble Commission on 15th May 2014 and further proceedings in the matter are in process. The Petitioner prays that the Commission may kindly allow the additional burden, if any, on the petitioner on account of the decision of the hon’ble Commission in the above matter.
Annual Revenue Requirement for FY 2015-16
4.127 In light of the components discussed above, the ARR proposed by Petitioner for FY 2015-16 is provided in the Table below:
Table 61: ARR for FY 15-16 (Rs. Cr)
Particulars FY 2014-15 FY 2015-16 Power purchase expenses 3311.30 3483.76 Cost of Unmet RPO 61.35 98.78 Transmission charges - PGCIL charges 203.62 226.55 Transmission charges - PTCUL charges 238.70 238.70 O&M 453.52 537.05 Employee 309.17 357.07
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Particulars FY 2014-15 FY 2015-16 A&G 24.79 27.57 R&M 119.56 152.41 Interest & Finance charges including interest on CSD 151.89 184.07 Depreciation 124.37 151.94 Interest on working capital 6.81 21.03 Gross expenditure 4551.75 4941.88
Other expenses Return on Equity 194.37 211.03 Provision for bad and doubtful debts 0.00 0.00 Net Expenditure 4746.12 5152.91 Less; Non-Tariff Income 90.84 95.38 Add: UJVNL Gap for Previous Years 156.40 Less: Surplus adjusted for previous years (FY12 and FY13) 138.13 Net aggregate revenue requirement 4673.55 5057.52
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A5: REVENUE PROJECTIONS
Revenue at existing tariff
5.1 The category-wise revenue assessment and average tariff for FY 2015-16 at the existing tariff rates (fixed charge and energy charge approved by the Hon'ble Commission in the Retail Tariff Order for FY 2014-15) are given below. Sales forecast is based on Adjusted Trend Analysis Method (CAGR).
Table 62: Category-wise average tariff & forecast revenue for FY 2015-16 at existing tariff rate Consumer Category Projected Sales- Average Tariff for FY Total Forecast FY 2015-16 2014-15 at Existing Revenue for FY (MU) Approved Rate 2015-16 (Rs/Unit) (Rs Cr.) RTS-1: Domestic 2618.75 2.91 763.24 RTS-2: Non-Domestic* 1168.24 4.88 570.97 RTS-3: Public Lamps 48.58 4.05 19.66 RTS-4: Private Tube-wells / Pumping 247.50 1.05 26.05 sets RTS-5: Government Irrigation 114.92 4.29 49.24 System RTS-6: Public Water Works 336.71 4.28 144.14 RTS-7: LT & HT Industry 5614.56 2653.73
Total LT* 317.14 4.43 140.50 Total HT* 5297.41 4.74 2513.23 RTS-8: Mixed Load 199.56 3.96 78.95 RTS-9: Railway Traction 11.82 4.96 5.87 Total 10360.63 4311.84
*Revenue includes charges on account of MCG, continuous supply surcharge and ToD tariff.
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A6: REVENUE GAP
Revenue Gap for FY 2015-16 at existing tariff
6.1 The Net Aggregate Revenue Requirement for FY 2015-16 is worked out as Rs 5057.52 Cr and the projected revenue at the existing tariff comes to Rs 4311.84 Cr, the revenue gap for the year is assessed at Rs 745.69 Cr.
6.2 The table below details revenue gap for FY 2015-16 at the existing tariff:
Table 63: Revenue Gap for FY 2014-15 (Rs. Cr) Particulars FY 2013-14 Net ARR 5057.52 Revenue at existing tariff 4311.84 (Gap)/Surplus -745.69
6.3 As can be seen from the above, existing tariff rates are not sufficient to meet the projected expenditure for FY 2015-16 so, there is a need for revision in tariff.
6.4 Therefore, it is proposed to recover the gap of Rs 745.69 Cr along with the gap on account of true-up for FY 2013-14 including carrying cost, by way of tariff hike in the FY 2015-16.
6.5 The break-up of the total gap to be recovered in FY 2015-16 is provided in the table below:
Table 64: Summary of gap to be recovered in FY 2015-16(Rs Cr) Particulars FY 2013-14 FY 2014-15 FY 2015-16 Opening Gap 0.00 314.09 359.63 Addition during the year 292.86 0.00 -359.63 Closing gap 292.86 314.09 0.00 Average Gap 146.43 314.09 179.82 Interest rate (as approved for working capital borrowing) 14.50% 14.50% 14.50% Carrying Cost 21.23 45.54 26.07 Closing Gap including carrying cost 314.09 359.63 Gap to be recovered during FY 2015-16 for Previous Year (A) 385.70 Gap for FY 2015-16 at existing tariff (B) 745.69 Total Gap to be recovered in FY 2015-16 (A+B) 1131.39
Revenue at proposed tariff in FY 2015-16
6.6 Based on the gap depicted above, it is proposed to recover the entire gap in FY 2015-16. Accordingly, the revenue at proposed tariff is calculated at Rs 5443.73 Cr against the total revenue requirement of Rs 5443.23 Cr, thus leaving a surplus of Rs 0.50 Cr.
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6.7 The Table below details the summary of the revenue from the various consumer categories at the proposed tariff, the schedule of which is provided in the next section. Slab-wise details of revenue at proposed tariffs have been furnished in Form: F-14 ('Revenue from Proposed Tariff for ensuing year') of the 'Distribution Formats' given by the Hon'ble Commission.
Table 65: Projected Revenues for FY 2015-16 at Proposed Tariffs S No Category Projected Sales-FY 2015-16 (MU) Average Rate Total Forecast Revenue for FY 2015-16 (Rs/Unit) (Rs Cr.) 1 RTS-1: 2618.75 3.68 963.19 2 RTSDomestic-2: 1168.24 6.17 721.34 3 RTSNon -3: 48.58 5.12 24.85 Domestic* 4 RTSPublic-4: 247.50 1.34 33.15 Lamps 5 RTSPrivate-5: 114.92 5.40 62.05 Govt.Tube 5.46 183.91 6 WellsRTS-6: 336.71 PublicIrrigation 3348.14 7 SystemRTS-7: 5614.56 IndustryWater 5.60 177.54 WorksLT 317.14 HTIndustry * 5297.41 5.99 3170.60 8 RTSIndustry*-8: 199.56 5.00 99.69 9 RTSMixed-9: 11.82 6.26 7.41 RailwayLoad Total 10360.63 5.25 5443.73 Traction *Revenue includes charges on account of MCG, continuous supply surcharge and ToD tariff.
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A7: TARIFF PROPOSAL
7.1 The tariff proposal has been formulated by the Petitioner with an attempt to keep the impact on the consumers to the minimum possible and at the same time not defer a large portion of recovery on the tariff in the coming years. Also the provision of the Section 61(g) of the Electricity Act, 2003 states that the appropriate Commission should be guided by the objective that the tariff progressively reflects the efficient and prudent cost of Supply of electricity.
7.2 Accordingly, the tariff proposal for each of the tariff category and slab is given below vis-a-vis the existing tariff.
Table 66: Category-wise and Slab-wise Existing Tariff vis-a-vis Proposed Tariff Existing Tariff Proposed Tariff Consumer Category Energy Energy Fixed Charge Fixed Charge Charge Charge RTS-1: Domestic
1.50 7.00 1.1 Life Line Consumers 1.90 Rs/kWh 10.00 Rs/Con/Month Rs/kWh Rs/Con/Month 1.2 Other Domestic Consumers
2.30 (i) 0-100 Units/month 2.90 Rs/kWh Rs/kWh Upto 4 kW-Rs 2.70 Upto 4 kW-Rs (ii) 101-200 Units/month 3.40 Rs/kWh 45/conn/month Rs/kWh 35/conn/month
More than 4 kW- 3.35 More than 4 kW- Rs (iii) Above 201-400 Units/month Rs 90/conn/month 4.20 Rs/kWh Rs/kWh 120/conn/month 3.50 (iv) Above 400 Units/month 4.40 Rs/kWh Rs/kWh 3.15 35.00 2. Single Point Bulk Supply 4.00 Rs/kWh 45.00 Rs/kW/Month Rs/kWh Rs/kW/Month 3.1 Un-metered in Rural (Hilly) 140.00 180.00 Rs/Con/Month Areas Rs/Con/Month 3.2 Un-metered in Rural (Other) 310.00 400.00 Rs/Con/Month Areas Rs/Con/Month RTS-2: Non-Domestic
(i) Government/Municipal Hospitals (ii) Government/Government Aided Educational Institutions (iii) Charitable Institutions registered under the Income Tax Act, 1961 and whose income is exempted from tax under this Act 3.85 35.00 1.1 Upto 25 kW 4.90 Rs/kWh 45.00 Rs/kW/Month Rs/kWh Rs/kW/Month 3.45 35.00 1.2 Above 25 kW 4.40 Rs/kVAh 45.00 Rs/kVA/Month Rs/kVAh Rs/kVA/Month 2. Other non- Domestic/Commercial Users 2.1 Small non domestic 4.00 35.00 5.10 Rs/kWh 45.00 Rs/kW/Month
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Existing Tariff Proposed Tariff Consumer Category Energy Energy Fixed Charge Fixed Charge Charge Charge consumers with connected load Rs/kWh Rs/kW/Month upto 4 kW and consumption upto 50 units per month 4.55 35.00 2.2 Upto 25 kW 5.75 Rs/kWh 45.00 Rs/kWMonth Rs/kWh Rs/kW/Month 4.55 35.00 2.2 Above 25 kW 5.75 Rs/kVAh 45.00 Rs/kVA/Month Rs/kVAh Rs/kVA/Month 3. Single Point Bulk Supply 4.45 35.00 5.65 Rs/kVAh 45.00 Rs/kVA/Month above 50 kW Rs/kVAh Rs/KVA/Month 4. Independent Advertisement Hoardings - - Rs.8.00/kWh Rs. 200/kW/Month
RTS-3: Public Lamps
4.10 1. Metered 30 Rs/Kw/Month 5.15 Rs/kWh 40.00 Rs/kW/Month Rs/kWh 175.00 Rs/100W 2. Un-metered (Rural) 225.00 Rs/100W Lamp Lamp RTS-4: Private Tube-wells / Pumping sets 1.10 1. Metered 1.40 Rs/kWh Rs/kWh 180.00 2. Un-metered 230.00 Rs/BHP/Month Rs/BHP/Month RTS-5: Government Irrigation System 4.10 40.00 1.1 Upto 75 kW 30 Rs/kW/Month 5.15 Rs/kWh Rs/kWh Rs/kW/Month 3.95 30 2.2 Above 75 kW 5.00 Rs/kVAh 40.00 Rs/kVA/Month Rs/kVAh Rs/KVA/Month RTS-6: Public Water Works
1. Public Water Works
4.00 Upto 25 kW 30 Rs/Kw/Month 40.00 Rs/kW/Month Rs/kVAh 5.10 Rs/kVAh Above 25 kW 30 Rs./kVA/Month 40.00 Rs./kVA/Month RTS-7: LT & HT Industry
LT industry having contracted load upto 75 kW (100 BHP) 3.75 100/kW of 1.Contracted load upto 25 kW 4.65 Rs/kWh 130.00 Rs/kW/Month Rs/kWh contracted load 2. Contracted load more than 25 3.40 100/kVA of 4.30 Rs/kVAh 130.00 Rs/kVA/Month kW Rs/kVAh contracted load HT industry having contracted load upto 88kVA/75 kW (100
BHP) 3. Contracted load upto 1000 kVA 3.05 210.00 Rs per kVA 270.00 Rs per kVA of 3.1 Load factor upto 33% 3.85 Rs/kVAh Rs/kVAh of billable demand billable demand 3.2 Load factor above 33% & 3.30 210.00 Rs per kVA 4.15 Rs/kVAh 270.00 Rs per kVA of
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Existing Tariff Proposed Tariff Consumer Category Energy Energy Fixed Charge Fixed Charge Charge Charge upto 50% Rs/kVAh of billable demand billable demand
3.60 210.00 Rs per kVA 270.00 Rs per kVA of 3.3 Load factor above 50% 4.55 Rs/kVAh Rs/kVAh of billable demand billable demand 4. Contracted load above 1000 kVA 3.05 270.00 Rs per kVA 345.00 Rs per kVA of 4.1 Load factor upto 33% 3.85 Rs/kVAh Rs/kVAh of billable demand billable demand 4.2 Load factor above 33% & 3.30 270.00 Rs per kVA 345.00 Rs per kVA of 4.15 Rs/kVAh upto 50% Rs/kVAh of billable demand billable demand 3.60 270.00 Rs per kVA 345.00 Rs per kVA of 4.3 Load factor above 50% 4.55 Rs/kVAh Rs/kVAh of billable demand billable demand RTS-8: Mixed Load
Mixed Load Single Point Bulk 3.80 40.00 Supply above 50 kW including 4.80 Rs/kWh 50.00 Rs/kW/Month Rs/kWh Rs/kW/Month MES as deemed licensee RTS-9: Railway Traction
3.25 190.00 1. Railway Traction 4.10 Rs/kVAh 240.00 Rs/kVA/Month Rs/kVAh Rs/kVA/Month
7.3 Some of the key alteration proposed by the petitioner in retail tariffs for FY 2015-16 is as follows:
a) The Petitioner proposes to abolish the snowbound category (RTS-1A) as there are no existing consumers under this category over last 5 years.
b) The Petitioner also proposes to introduce a new tariff sub-category under RTS-2 (Non Domestic) for Private Advertisement Boards and Hoardings in similar lines of the neighbouring states like Uttar Pradesh, Haryana and Delhi. The tariff proposed for this category and tariff in the neighbouring states is shown in the table below: State Category/ Sub Category Fixed Charge (Per Energy Charge (Per Month) Unit) Delhi Advertisements and 500 Rs//hoarding 11.20 Rs/kVAh Hoardings Haryana Independent Hoardings Rs 150/kW 7.45 Rs/kWh /decorative lights Uttar Pradesh Private Advertising / Sign Rs 1200/kW MCG 14.00 Rs/kWh Posts / Sign Boards / Glow Signs / Flex Uttarakhand (Proposed Rate) Advertisements and Rs 200/kW 8.00 Rs/kWh Hoardings
c) RTS-4 (PTW) currently includes “Incidental agricultural processes confine to chaff cutter, thrasher, cane crusher and rice huller”. The Petitioner proposes that thrasher, cane crusher and rice huller may be removed from this category as these activities are of industrial nature and should be cover by Rate Schedule
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RTS-7. It may be also noted that under the existing classification, it is difficult to identify the incidental agricultural produce of the connection which is sanctioned for irrigation purposes and thus prone to be misused by availing subsidised tariff for the activities not covered under this rate schedule.
d) In RTS-6 (Public water works), the current tariff schedule has prescribed only kVA/kVAh tariff. However, for PWW connections where connected load is upto 25 kW, meter which is capable of recording kVah consumption is not installed. Therefore, the Petitioner proposes to introduce kWh tariff for PWW connections with connected load upto 25 kW.
e) As the Embedded Open Access Consumers receives power supply from UPCL and through Open Access on same connection (through same meter) sanctioned by UPCL and the wheeling charges for the Open Access Energy is adjusted from the demand charges which are fixed for UPCL Energy, the contracted/maximum demand of the connection should be apportioned on both the energy i.e. on UPCL Energy and on Open Access Energy. As the Hon’ble Commission, while defining the load factor formula, reduced the Open Access Energy from the total consumption but not reduced the demand against the Open Access Consumption from the total contracted/maximum demand, this formula needs to be revised as follows:
Consumption during the billing period 100 Maximum Demand or Contracted Demand whichever is less x No. of hours in the billing period
Here it is assumed that the Maximum Demand / Contracted Demand, whichever is less, will reduce in proportion to the energy consumed through open access and total energy consumption.
f) As per the provisions of Electricity Act 2003, drawing of demand in excess of the contracted demand on any electricity connection is unauthorised use of electricity and the tariff for such unauthorised use should be at a rate equal to twice the normal tariff applicable. Accordingly demand charges and energy charges corresponding to the excess demand should be charged twice the normal rates and this has been proposed in this petition.
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A8: PROPOSED RATE SCHEDULE FOR FY 2015-16
General Conditions of Supply
1. Character of Service
i) Alternating Current 50 Hz., single phase, 230 Volts (with permissible variations) up to a load of 4 kW. ii) Alternating Current 50 Hz, three phase, 4 wire, 400 Volts or above (with permissible variations) for loads above 4 kW depending upon the availability of voltage of supply.
2. Conditions for New Connections
i) Supply to new connections of more than 75 kW (88 kVA) and up to 2550 kW (3000 kVA) shall be released at 11 kV or above, loads above 2550 kW (3000 kVA) and upto 8500 kW (10000 kVA) shall be released at 33 kV or above and loads above 8500 kW (10000 kVA) shall be released at 132 kV or above. ii) All new connections shall be given with meter conforming to CEA Regulations on Installation and Operation of Meters. iii) All new 3 phase connections above 4 kW shall be released with Electronic Tri-vector Meter having Maximum Demand Indicator. iv) All new single point bulk connection shall be given only for load more than 75 kW. v) Consumers having motive loads of more than 5 BHP shall install Shunt Capacitor of appropriate rating and conforming to BIS specification. vi) All new connections at HT/EHT should be released only with 3 phase 4 wire meters.
3. Point of Supply
Energy will be supplied to a consumer at a single point.
4. Billing in Defective Meter (ADF/IDF), Meter Not Read/Not Accessible (NA/NR) and Defective Reading (RDF) Cases
In NA/NR cases, the energy consumption shall be assessed and billed as per average consumption of last one year average consumption (as per Regulations 3.1.2 (3) of the Electricity Supply Code) which
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shall be subject to adjustment when actual reading is taken. Such provisional billing shall not continue for more than two billing cycles at a stretch. Thereafter, the licensee shall not be entitled to raise any bill on provisional basis. In case of defective meter (ADF/IDF) and defective reading (RDF) cases, the consumers shall be billed on the basis of the average consumption of the past three billing cycles immediately preceding the date of the meter being found or being reported defective (as per Regulations 3.2(1) of the Electricity Supply Code). These charges shall be leviable for a maximum period of three months only during which time the licensee is expected to have replaced the defective meter. Thereafter, the licensee shall not be entitled to raise any bill without correct meters. The checking and replacement of defective meter cases namely IDF and ADF and defective reading cases namely RDF shall be done by the licensee in accordance with Regulation 3.1.4 of the Electricity Supply Code.
5. Billing in case of domestic metered consumers in rural areas whose meters are not being read
For cases relating to domestic metered consumers in rural areas, where meter reading is not being taken and bills are being raised based on tariff approved for unmetered connections, the provisional billing shall be done at the normative levels of consumption as given below, which shall be subject to annual adjustment based on actual meter reading.
Category Normative Consumption
Domestic (Rural-Hilly Areas) 30 kWh/kW/month
Domestic (Rural-Other Areas) 50 kWh/kW/month
For this purpose, the contracted load shall be rounded off to next whole number. Billing on this basis is subject to annual adjustment and the licensee is to ensure meter reading of such consumers at least once a year.
6. Billing in New Connection or conversion from unmetered to metered Cases
For cases such as new connections or conversion of unmetered to metered connection, where past reading is not available, the provisional billing shall be done at the normative levels of consumption as given below, which shall be subject to adjustment when actual reading is
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taken.
Category Normative Consumption Domestic (Urban) 100 kWh/kW/month Domestic (Rural-Hilly Areas) 30 kWh/kW/month Domestic (Rural-Other Areas) 50 kWh/kW/month Non-domestic (Urban) 150 kWh/kW/month Non-domestic (Rural) 100 kWh/kW/month Private Tube Wells 70 kWh/BHP/month Industry LT Industry 150 kWh/kW/month HT Industry 150 kVAh /kVA /month For this purpose, the contracted load shall be rounded off to next whole number. Billing on this basis shall continue only for a maximum period of 2 billing cycles, during which the licensee is supposed to have taken actual reading. Thereafter, the licensee shall not be entitled to raise any bill without correct meter reading. In all other categories 1st bill shall be raised only on actual reading. 7. Delayed Payment Surcharge (DPS) (for all categories except PTW)
In the event of electricity bill rendered by licensee, not being paid in full within 15 days’ grace period after due date, a surcharge of 1.25% on the principal amount of bill which has not been paid shall be levied from the original due date for each successive month or part thereof until the payment is made in full without prejudice to the right of the licensee to disconnect the supply in accordance with section 56 of the Electricity Act, 2003. The licensee shall clearly indicate in the bill itself the total amount, including DPS, payable for different dates after the due date, after allowing for the grace period of 15 days, taking month as the unit as shown exemplified below: EXAMPLE:
Amount payable by Due date Rs. 100/-
Due Date 1st April 2015
Amount Payable
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On or Before After After 16th April 2015 16th April 2015 1st May 2015
Rs. 100/- Rs. 101.25 Rs. 102.50
8. Solar Water Heater rebate
If consumer installs and uses solar water heating system, rebate of Rs. 100/- p.m. for each 100 litre capacity of the system or actual bill for that month whichever is lower shall be given subject to the condition that consumer gives an affidavit to the licensee to the effect that he has installed such system, which the licensee shall be free to verify from time to time. If any such claim is found to be false, in addition to punitive legal action that may be taken against such consumer, the licensee will recover the total rebate allowed to the consumer with 100% penalty and debar him from availing such rebate for the next 12 months.
9. Rebate for prepaid metering
Prepaid metering scheme approved by the Commission in the Tariff Order dated 11.04.2012 for FY 2012-13 shall continue to be in force. A rebate of 4% of energy charges for Domestic category (RTS-1 and RTS-1A) and 3% of energy charges for Other LT consumers shall be allowed to the consumers under the Prepaid Metering Scheme from the date of installation and operationalisation of Prepaid Meters. However, no rebate shall be applicable on Part (A) of RTS-10, i.e. Temporary Supply for Illumination & Public Address Needs and on part 1.4 of the Rate Schedule RTS-2.
10. Rebate/surcharge for availing supply at voltage higher/lower than base voltage
(i) For consumers having contracted load upto 75 kW/88 kVA - If the supply is given at voltage above 400 Volts and upto 11 kV, a rebate of 5% would be admissible on the Energy Charge.
(ii) For consumers having contracted load above 75 kW/88 kVA – In case the supply is given at 400 Volts, the consumer shall be required to pay an extra charge of 10% on the bill amount calculated at the Energy Charge.
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(iii) For consumers having contracted load above 75kW/88 kVA – In case of supply at 33 kV the consumer shall receive a rebate of 2.5% on the Energy Charge.
(iv) For consumers having contracted load above 75 kW/88 kVA and receiving supply at 132 kV and above, the consumer shall receive a rebate of 7.5% on the Energy Charge.
(v) All voltages mentioned above are nominal rated voltages.
(vi) For the purpose of computation of energy received through open access in accordance with UERC (Terms and Conditions of Intra-State Open Access) Regulations, 2010, above mentioned voltage rebates shall not apply. The rebates for this purpose shall be 1.5% for 33 kV and 5% for 132 kV and above on the Rate of Charge. 11. Low Power Factor Surcharge (not applicable to Domestic, PTW categories and other categories having kVAh based Tariff)
(i) In respect of the consumers without Electronic Tri Vector Meters, who have not installed shunt capacitors of appropriate ratings and specifications, a surcharge of 5% on the current energy charges shall be levied.
(ii) For consumers with Electronic Tri Vector Meters, a surcharge of 5% on current energy charges will be levied for having power factor between 0.85 upto 0.80 & a surcharge of 10% of current energy charges will be levied for having power factor below 0.80. 12. Excess Load/Demand Penalty (Not applicable to Domestic, Snow bound and PTW categories)
In case of consumers where electronic meters with MDI have been installed, if the maximum demand recorded in any month exceeds the contracted load/demand, charges for such excess load/demand shall be levied twice the normal rate of fixed/demand charge and energy charge as applicable. Such excess load penalty shall be levied only for the month in which maximum demands exceeds contracted load. The additional energy charges with respect to the excess demand/load shall be calculated as follows:
Total Consumption x Excess Demand x applicable average rate of Energy Charge/Maximum Demand
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Example:
(i) For consumers where fixed charges on the basis of contracted load/demand have been specified:
Contracted load 30 kW, Maximum Demand 43 kW,
Excess Demand 43-30=13 kW, Rate of Fixed Charges= Rs. 35/kW
Fixed Charges for contracted load = 30 x 35=Rs.1050
Fixed Charges for excess load = 13x (2 x35) =Rs. 910
Total Fixed Charges = 1050+910= Rs. 1960
(ii) For industrial consumers billed on billable demand:
Contracted demand 2500 kVA, Maximum Demand 2800 kVA, Billable Demand =2800 kVA
Excess Demand =2800-2500=300 kVA, Rate of Demand Charges= Rs. 270/kVA
Demand Charges for contracted demand =2500 x 270=Rs. 675000
Demand Charges for excess demand = 300x (2 x 270) =Rs. 162000
Total Demand Charges = 675000+162000= Rs. 837000
13. Minimum Consumption Guarantee (MCG)
The minimum consumption guarantee (MCG) charges shall be applicable to all non- domestic consumers having load above 25 kW, metered PTW consumers and all industrial consumers for their consumption in kWh (where kWh tariff is applicable) and kVAh (where kVAh tariff is applicable). The Commission has specified the minimum consumption guarantee on monthly basis as well as on annual basis. The minimum consumption guarantee charges will be levied on monthly basis when monthly consumption is less than the units specified for monthly minimum consumption guarantee (MCG).
In case Cumulative actual consumption from the beginning of financial year exceeds the units specified for annual minimum consumption guarantee (MCG) no further billing of monthly MCG shall be done. In such cases differential paid in excess of actual billing shall be adjusted in the bill for month of March 2016.
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Example:
Illustrative case for Contracted load – 10 kW/kVA
Month Actual Cumulative Actual Billed Cumulative Billed consumption Consumption Consumption Consumption (kWh/kVAh) (kWh/kVAh) (kWh/kVAh) (kWh/kVAh) Apr 700 700 750 750 May 610 1310 750 1500 Jun 540 1850 750 2250 Jul 1210 3060 1210 3460 Aug 690 3750 750 4210 Sep 1535 5285 1535 5745 Oct 2560 7845 2560 8305 Nov 910 8755 910 9215 Dec 570 9325 570 9785 Jan 340 9665 340 10125 Feb 865 10530 865 10990 Mar 710 11240 250 11240
14. Single Point Bulk Supply for Domestic, Non Domestic and Mixed Load Categories
(i) Single Point Bulk Supply connection shall only be allowed for Sanctioned/ Contracted Load above 75 kW with single point metering for further distribution to the end users. However, this shall not restrict the individual owner/occupier from applying for individual connection. However further, the existing Single Point Bulk Supply consumers having load above 50 KW and upto 75 KW shall be covered under the respective rate schedule and sub category as approved in tariff Order for FY 2012-13. The applicable rate of charge and provision for common facility shall be as approved in this Tariff Order.
(ii) The person who has taken the single point supply shall be responsible for all payments of electricity charges to the Licensee and collection from the end consumer as per applicable tariff for them. The Licensee shall ensure that tariff being charged from end consumer does not exceed the prescribed tariff for the concerned category of the consumer.
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(iii) The person who has taken the single point supply shall also be deemed to be an agent of Licensee to undertake distribution of electricity for the premises for which single point supply is given under seventh proviso to section 14 of the Electricity Act, 2003 and distribution licensee shall be responsible for compliance of all provisions of the Act and Rules & Regulations thereunder within such area. (iv) Single Point Bulk Supply under “Domestic” shall only be applicable for Residential Colonies/Residential Multistoreyed Buildings including common facilities (such as Lifts, Common Lighting and Water Pumping system) of such Residential Colonies/Residential Multistoreyed Buildings. In case these Residential Colonies/Residential Multistoreyed Buildings also have some shops or other commercial establishments, the tariff of Mixed Load shall be applicable for such premises. (v) Single Point Bulk Supply Under “Non-Domestic” shall only be applicable for Shopping Complexes/Multiplex/Malls.
15. Rounding off
(i) The contracted load/demand shall be expressed in whole number only and fractional load/demand shall be rounded up to next whole number.
Example:
Contracted/Sanctioned Load of 0.15 kW shall be reckoned as 1 kW for tariff purposes. Similarly, contracted/sanctioned load of 15.25 kW/kVA shall be taken as 16 kW/kVA.
(ii) All bills will be rounded off to the nearest rupee.
16. Other Charges
Apart from the charges provided in the Rate of Charge and those included in the Schedule of Miscellaneous Charges, no other charge shall be charged from the consumer unless approved by the Commission.
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Tariffs
RTS-1: Domestic
1. Applicability
This schedule shall apply to:
i) Residential premises for light, fan, power and other domestic purposes including common facilities (such as lifts, common lighting and water pumping system)
ii) Single point bulk supply above 75 kW for residential colonies, residential multi- storied buildings where energy is exclusively used for domestic purpose including common facilities (such as Lifts, Common Lighting and Water Pumping system) of such Residential Colonies/Residential Multistoreyed Buildings.
iii) Places of worship, i.e. Mandir, Masjid, Gurudwara, Church, etc. (only for stand alone places of worship and not for the places of worship which have other facilities such as Dharamshala, Community Hall, Dormatories, etc. attached with it)
(This rate schedule shall also be applicable to consumers having contracted load upto 2 kW and consumption upto 200 kWh/month using some portion of the premises mentioned above for business/other purposes. However, if contracted load for such premises is above 2 kW or consumption is more than 200 kWh/month, then the entire energy consumed shall be charged under the appropriate Rate Schedule unless such load is segregated and separately metered.) 2. Rate of Charge (A) Un-Metered Supply (Domestic) in Rural Areas
Description Fixed Charges
1) Hilly Areas* Rs. 180/connection/month
2) Other Areas Rs. 400/connection/month
* Hill areas for this purpose shall be district Pithoragarh, Almora, Bageshwar, Chamoli, Uttarkashi, Tehri, whole tract of Rudraprayag. Apart from above, Chakarata and Mussoorie tehsil of Dehradun district, Nainital tehsil of Nainital district, part of Ram Nagar tehsil after leaving remaining regularized region of Ram Nagar, part of Tanakpur municipality limit after leaving remaining part of Champawat district and part of Kotdwar municipal limit after leaving remaining part of Pauri district are also included.
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(B) Metered Supply
Description Fixed Charges Energy Charges
1) Domestic Metered
1.1) BPL consumers
Below Poverty Line and Kutir Jyoti having load upto 1 kW and Rs.10/connection/month Rs.1.90/kWh consumption upto 30 units per month
For Consumption Upto 100 units/month – Rs 2.90/kWh For Consumption between 101-200 1.2) Other domestic consumers having Rs. 45/con/month units/month – Rs 3.40/kWh load upto 4 kW For Consumption between 101-200 units/month – Rs 4.20/kWh For Consumption above 400 units/month – Rs 4.40/kWh For Consumption Upto 100 units/month – Rs 2.90/kWh Rs. 120/con/month For Consumption between 101-200 1.3) Other domestic consumers having units/month – Rs 3.40/kWh load above 4 kW For Consumption between 101-200 units/month – Rs 4.20/kWh For Consumption above 400 units/month – Rs 4.40/kWh 2) Single Point Bulk Supply Rs. 45/kW/month Rs. 4.00/kWh
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RTS-2: Non-Domestic
1. Applicability 1.1 (i) Government/Municipal Hospitals (ii) Government/Government Aided Educational Institutions (iii) Charitable Institutions registered under the Income Tax Act, 1961 and whose income is exempted from tax under this Act
1.2 Small Non Domestic Consumers with connected load upto 4 kW and consumption upto 50 units per month
1.3 Other Non-Domestic Users including single point bulk supply above 75 kW for shopping complexes/multiplex/malls including common facilities (such as lifts, common lighting and water pumping system).
1.4 Independent Advertisement Boards / Hoardings – All commercial (road side / roof top of the buildings) independent advertisement hoardings such a private advertising / sign posts/ sign boards / sign glows / flex.
2. Rate of Charge Metered Category MCG (kVAh/kVA of S. No. Description Fixed Charges Energy charges contracted load)*
(i) Government/Municipal Hospitals (ii) Government/Government Aided Educational Institutions (iii) Charitable Institutions
registered under the Income Tax Act, 1961 and whose income is exempted from tax under this Act 1.1 a) Upto 25 kW Rs. 45/kW/Month Rs. 4.90/kWh
60 kVAh/ kVA/ month and b) Above 25 kW 720/kVAh/ Rs. 45/kVA/Month Rs. 4.40/kVAh kVA/ annum
1.2 Other Non Domestic/Commercial Users
a) Small Non Domestic Consumers with Rs. 45/kW/Month Rs. 5.10 /kWh connected load upto 4 kW and consumption
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upto 50 units per month
b) Other Upto 25 kW not covered in 1.2(1) above. Rs. 45/kW/Month Rs. 5.75 /kWh
60 kVAh/ kVA/ month and c) Above 25 kW 720/kVAh/ Rs. 45/kVA/Month Rs. 5.75/kVAh kVA/ annum
60 kVAh/ kVA/ month and 3) Single Point Bulk Supply** 720/kVAh/ Rs. 45/kVA/Month Rs 5.65/kVAh kVA/ annum
Independent Advertisement Hoardings as 4) covered under para 1.4 Rs 200/kW/Month Rs 8.00/kWh
*For consumershaving contracted load in kW, the contracted load for MCG purposes shall be calculated by considering a power factor of 0.85. The Minimum Consumption Guarantee Charge shall be in addition to fixed/demand charge and shall be levied if Consumption during a month is less than MCG and will be subject to adjustment on annual basis
** Above 75 kW for shopping complexes/multiplex/malls
(i) ToD Meters shall be read by Meter Reading Instrument (MRI) only with complete dump with phasor diagram, Tamper Reports, full load survey reports etc. shall be downloaded for the purpose of complete analysis. (ii) All consumers above 25 kW shall necessarily have ToD Meters. (iii) No meter shall be read at zero load or very low load. Licensee shall carry appropriate external load and shall apply the same wherever necessary to take MRI at load (iv) Copy of MRI Summary Report shall be provided alongwith the Bill. Full MRI Report including load survey report shall be provided on demand and on payment of Rs. 15/ Bill.
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RTS-3: Public Lamps
1. Applicability
This schedule shall apply to public lamps including street lighting system, traffic control signals, lighting of public parks, etc. The street lighting of Harijan Bastis and villages are also covered by this Rate Schedule. 2. Rate of Charge
Category Fixed Charges Energy Charge
Metered Rs. 40/kW/month Rs. 5.15/kWh
Unmetered Rural *Rs. 225/100W lamp or part thereof / month Nil
* For every 50 W or part thereof increase over and above 100W lamp additional Rs 80/month shall be charged
3. Maintenance Charge
In addition to the “Rate of Charge” mentioned above, a sum of Rs. 10/- per light point per month shall be charged for operation and maintenance of street lights covering only labour charges where all material required will be supplied by the local bodies. However, the local bodies will have the option to operate and maintain the public lamps themselves and in such case no maintenance charge will be charged. 4. Provisions of Street Light Systems
In case, the maintenance charge, as mentioned above, is being charged then the labour involved in the subsequent replacement or renewals of lamps shall be provided by the licensee but all the material shall be provided by the local bodies. If licensee provides material at the request of local body, cost of the same shall be chargeable from the local body.
The cost involved in extension of street light mains (including cost of sub-stations if any) in areas where distribution mains of the licensee have not been laid, will be paid for by the local bodies.
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RTS-4: Private Tube Wells/ Pumping Sets
1. Applicability
This schedule shall apply to all power consumers getting supply for private tube-wells / pumping sets for irrigation purposes and for incidental agricultural processes confined to chaff cutter only. However, the tariff applicable for RTS-4 shall only be applicable if such incidental agricultural processes are being carried out for agricultural produce of the connection sanctioned for irrigation purposes.
2. Rate of charge
Fixed Charges Energy Charges Monthly Minimum Charges Category Rs./BHP/Month Rs./kWh (MMC)
Unmetered *230 Nil Nil
70 Units /BHP/Month & 840 Metered Nil 1.40 Units / BHP /Annum
*Plus Rs. 20/connection/month for lighting load of not more than two lamps not exceeding 60Watt each.
3. Payments of bills and Surcharge for Late Payment
The bill shall be raised for this category twice a year only i.e. by end of December (for period June to November) and end of June (for period December to May). The bill raised in December may be paid by the consumer either in lump-sum or in parts (not more than four times) till 30th April next year for which no DPS shall be levied. Similarly, bill raised in June may be paid by 31st October without any DPS. In case consumer fails to make payment within the specified dates, a surcharge @ 1.25% per month for the period (months or part thereof) shall be payable on the outstanding amount.
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RTS-5: Government Irrigation System
1. Applicability
This schedule shall apply to: (i) Supply of power for State Tubewells, World Bank Tubewells, Pumped Canals and Lift irrigation schemes, Laghu Dal Nahar etc., having a load upto 75 kW (100 BHP). (ii) Irrigation system owned and operated by any Government department.
2. Rate of charge
Description Fixed Charges Energy Charges
1. Upto 75 kW Rs. 40/kW/month Rs. 5.15/kWh
2. More than 75 kW Rs. 40/kVA/month Rs. 5.00/kVAh
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RTS-6: Public Water Works
1. Applicability
This Schedule shall apply to Public Water Works, Sewage Treatment Plants and Sewage Pumping Stations functioning under Jal Sansthan, Jal Nigam or other local bodies and Plastic Recycling Plants.
2. Rate of charge
Description Fixed Charges Energy Charges
Upto 25 kW Rs. 40/kW/month Rs. 5.10kWh
More than 25 kW Rs. 40/kVA/month Rs. 5.10kVAh
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RTS-7: LT and HT Industry
1. Applicability
This schedule shall apply to: (i) All consumers of electrical energy for industrial and /or processing or agro- industrial purposes, power loom as well as to Arc/Induction Furnaces, Rolling/Re- rolling Mills, Mini Steel Plants and to other power consumers not covered under any other Rate Schedule (ii) The Vegetable, Fruits, Floriculture & Mushroom integrated units farming, Processing, storing and Packaging shall also be covered under this Rate schedule.
2. Specific Conditions of Supply (i) All connections shall be connected with MCB (Miniature Circuit Breaker) or Circuit Breaker / Switch Gear of appropriate rating and BIS Specification. (ii) The supply to Induction and Arc Furnaces shall be made available only after ensuring that the loads sanctioned are corresponding to the load requirements of tonnage of furnaces. The minimum load of 1 Tonne furnace shall in no case be less than 400 kVA and all loads will be determined on this basis. No supply will be given for loads below this norm. (iii) Supply to Steel Units shall be made available at a voltage of 33 kV or above through a dedicated individual feeder only with check meter at sub-station end. Difference of more than 3%, between readings of check meter and consumer meter(s), shall be immediately investigated by the licensee and corrective action shall be taken. (iv) Supply to all new connections with load above 1000 kVA should be released on independent feeders only with provisions as at (iii) above.
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Fixed /Demand MCG (kVAh/kVA of Description Energy Charge Charge contracted load)** per month
1. LT Industry having contracted load upto 75kW (100 BHP)
$60 kWh/kWof contracted load/month 1.1 Contracted load upto 25 kW and 720 kWh/kW of 130.00 contracted load/annum 4.65 Rs/kWh Rs/kW/Month 60 kVAh/kVA***of contracted load/month 1.2Contracted load more than 25 kW and 720 kVAh/kVA of 130.00 contracted load/annum 4.30 Rs/kVAh Rs/kVA/Month 2.HT Industry having contracted load above 88kVA/75 kW (100 BHP)
2.1 Contracted load upto 1000 kVA
Load factor# upto 33% 3.85 Rs/kVAh Load factor# above 33% & upto 50% Rs. 270/kVA of 110 kVAh/kVA of 4.15 Rs/kVAh the billable contracted load/ month # Load factor above 50% demand* & 1320 kVAh/ kVA of 4.55 Rs/kVAh contracted load/ annum 4) HT Industries (above 1000 KVA)
Load factor# upto 33% 3.85 Rs/kVAh Rs.345/kVA of Load factor# above 33% & upto 50% the billable 4.15 Rs/kVAh demand* Load factor# above 50% 4.55 Rs/kVAh $ 40 kWh/kW/month and 480 kWh/kW/annum for Atta Chakkis. * Billable demand shall be the actual maximum demand or 80 % of the contracted load whichever is higher. ** The Minimum Consumption Guarantee Charge shall be in addition to fixed/demand charge and shall be levied if Consumption during a month is less than MCG and will be subject to adjustment on annual basis. The energy charges for units billed to cover MCG during any months shall be charged at the rates specified for load factor upto 33% during normal hours and the annual adjustment(refund) of such excess energy charges, if any, shall also be given at the rates specified for load factor upto 33% during normal hours. ***For consumers having contracted load in kW, the contracted load for MCG purposes shall be calculated by considering a power factor of 0.85.
#For tariff purposes Load Factor (%) would be deemed to be =
Consumption during the billing period 100 Maximum Demand or Contracted Demand whichever is less x No. of hours in the billing period
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3. Time of Day Tariff (i) The rates of energy charge given above for LT industry with load more than 25 kW and HT industry shall be subject to ToD rebate/surcharge. (ii) ToD Meters shall be read by Meter Reading Instrument (MRI) only with complete dump with phasor diagram, Tamper Reports, full load survey reports etc. shall be downloaded for the purpose of complete analysis and bills shall be raised as per ToD rate of charge. (iii) No meter shall be read at zero load or very low load. Licensee shall carry appropriate external load and shall apply the same wherever necessary to take MRI at load (iv) Copy of MRI Summary Report shall be provided along with the Bill. Full MRI Report including load survey report shall be provided on demand and on payment of Rs. 15/ Bill (v) ToD Load shall be as under: Morning Peak Normal Evening Peak Off-peak Season/Time of day hours Hours hours Hours
Winters 0600-0930 hrs 0930-1730 hrs 1730-2200 hrs 2200-0600 hrs 01.10 to 31.03
Summers -- 0700-1800 hrs 1800-2300 hrs 2300-0700 hrs 01.04 to 30.09
The, ToD Rate of Energy Charges shall be as under: For LT Industry
Energy Charge during
Normal Hours Peak Hours Off-peak Hours
Rs 4.30/kVAh Rs. 6.45/kVAh Rs. 3.85/kVAh
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For HT Industry
Energy Charge during Load Factor* Normal Hours Peak Hours Off-peak Hours
Upto 33 % Rs. 3.85 /kVAh Rs. 6.85/kVAh Rs. 3.45 /kVAh
Above 33% and upto 50% Rs. 4.15/kVAh Rs. 6.85/kVAh Rs. 3.75/kVAh
Above 50% Rs. 4.55/kVAh Rs. 6.85/kVAh Rs. 4.10/kVAh
* Load Factor shall be as defined in Clause 2 above
4. Seasonal Industries
Where a consumer having load in excess of 18 kW (25 BHP) and ToD meter and avails supply of energy for declared Seasonal industries during certain seasons or limited period in the year, and his plant is regularly closed down during certain months of the financial year, he may be levied for the months during which the plant is shut down (which period shall be referred to as off-season period) as follows. (i) The tariff for ‘Season’ period shall be same as “Rate of Charge” as given in this schedule. (ii) Where actual demand in ‘Off Season’ Period is not more than 30% of contracted load, the energy charges for “Off-Season” period shall be same as energy charges for “Season” period given in Rate of Schedule above. However, the contracted demand in the “Off Season” period shall be reduced to 30%. (iii) During ‘Off-season’ period, the maximum allowable demand will be 30% of the contracted demand and the consumers whose actual demand exceeds 30% of the contracted demand in any month of the ‘Off Season’ will be denied the above benefit of reduced contracted demand during that season. In addition, a surcharge at the rate of 10% of the demand charge shall be payable for the entire ‘Off Season’ period.
Terms and Conditions for Seasonal Industries
(i) The period of operation should not be more than 9 months in a financial year.
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(ii) Where period of operation is more than 4 months in a financial year, such industry should operate for at least consecutive 4 months. (iii) The seasonal period once notified cannot be reduced during the year. The off- season tariff is not applicable to composite units having seasonal and other categories of loads. (iv) Industries in addition to sugar, ice, rice mill, frozen Foods and tea shall be notified by Licensee only after prior approval of the Commission.
5. Factory Lighting
The electrical energy supplied under this schedule shall also be utilised in the factory premises for lights, fans, coolers, etc. which shall mean and include all energy consumed for factory lighting in the offices, the main factory building, stores, time keeper’s office, canteen, staff club, library, creche, dispensary, staff welfare centres, compound lighting, etc.
6. Continuous and Non-continuous supply
(i) Only Continuous Process Industry consumers operating 24 hours a day for 7 days of a week without any weekly off connected on either independent feeders or industrial feeder can opt for continuous supply. For industrial feeder, all connected industries will have to opt for continuous supply and in case anyone consumer on industrial feeder does not wish to opt for continuous supply, all the consumers on such feeder will not be able to avail continuous supply. Such Continuous Process Industry consumers who opt for continuous supply shall be exempted from load shedding during scheduled/unscheduled power cuts and during restricted hours of the period of restriction in usage approved by the Commission from time to time, except load shedding required due to emergency breakdown/shutdown. Such consumers shall pay 15% extra energy charges, in addition to the energy charges given above, with effect from May 01, 2015 or in case of new consumers, from the date of connection, till 31st March 2016, irrespective of actual period of continuous supply option. Demand charge and other charges remain same as per rate of charge given above.
(ii) Consumers, who are existing Continuous Supply Consumers shall continue to remain Continuous Supply Consumers and they need not to apply again for seeking continuous supply option. However, in case of any pending dispute with UPCL in the matter of
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continuous supply on certain feeders, those consumers will have to apply afresh, for availing the facility of continuous supply, by April 30, 2015.
(iii) The new applicants for continuous supply of power (including those who are applying afresh as per above) can apply for seeking the continuous supply option at any time during the year. However, continuous supply surcharge for existing consumers shall be applicable with effect from May 01, 2015 till March 31, 2016. UPCL shall provide the facility of continuous supply within 7 days from the date of application, subject to fulfilment of Conditions of Supply. However, in case of re-arrangement of supply through independent feeder, UPCL shall provide the facility of continuous supply from the date of completion of work of independent feeder subject to fulfilment of Conditions of Supply.
(iv) The existing consumers availing continuous supply option, who wish to discontinue the continuous supply option granted to them earlier, will have to communicate, in writing, to UPCL latest by April 30, 2015 and they shall continue to pay continuous supply surcharge alongwith the tariff approved in this Order till April 30, 2015. Further, in this regard, if due to withdrawal by one consumer from availing continuous supply option on a particular feeder, supplying to other continuous supply consumers as well, the status of other continuous supply consumers in that feeder is affected, then UPCL shall inform all the affected consumers in writing, well in advance.
(v) UPCL shall not change the status of a continuous supply feeder to a non-continuous supply feeder;
(vi) UPCL/PTCUL shall take up augmentation, maintenance and overhauling works on top priority, specially in the sub-stations where circuit breakers, other equipment, etc. are in dilapidated condition and, thereby, shall ensure minimisation of interruptions of the continuous supply feeders;
(vii) UPCL/PTCUL shall carry out periodical preventive maintenance of the feeders supplying to continuous supply consumers. The licensees shall prepare preventive maintenance schedule, in consultation with continuous supply consumers, well in advance, so that such consumers can plan their operations accordingly.
(viii) The Licensee should show the energy charges and continuous supply surcharge
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thereon separately in the bills.
7. Demand charges for HT industry If the minimum average supply to any HT Industry Consumers is less than 18 hours per day during the month, the Demand Charges applicable for such HT Industry Consumer shall be 80% of approved Demand Charges for HT Industry.
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RTS 8: Mixed Load
1. Applicability
This schedule applies to single point bulk supply connection of more than 75 kW where the supply is used predominantly for domestic purposes (with more than 60% domestic load) and also for other non-domestic purposes. This schedule also applies to supply to MES.
2. Rate of Charge
The following rates shall apply to consumers of this category
Fixed Charges Energy Charges
Rs. 50/kW/month Rs. 4.80/kWh
3. Other conditions
Apart from the above, other conditions of tariff shall be same as those for RTS-1 consumers. However, excess load penalty shall be applicable as per clause 12 of General Conditions of Supply.
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RTS 9: Railway Traction
1. Applicability
This schedule applies to Railways utilizing power for traction purposes. 2. Rate of Charge
The following rates of energy and demand charge shall apply to this category: Demand Charges Energy Charges
Rs. 240/kVA/month Rs. 4.10/kVAh
3. Other conditions
Apart from the above, other conditions of tariff shall be same as those for General HT Industries under RTS-7 consumers except applicability of ToD tariff and surcharge for continuous supply.
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RTS-10: Temporary Supply
(A) Temporary Supply for Illumination & Public Address Needs
1. Applicability
This schedule shall apply to temporary supply of light & fan up to 10 kW, public address system and illumination loads during functions, ceremonies and festivities, temporary shops not exceeding three months. 2. Rate of Charge Description Fixed Charges
(1) For Illumination / public address/ ceremonies for load up to 15 kW Rs. 1400 per day
(2) Temporary shops set up during festivals / melas and having load upto 2 kW Rs. 100 per day
(3) Other Temporary shops/ Jhuggi /Jhopris for load upto 1 Kw
3.1) Rural Rs. 125/month/connection
3.2) Urban Rs. 250/month/connection
The amount of Fixed Service Charge as specified in 2 above shall be taken in advance. (B) Temporary Supply for Other Purposes
1. Applicability (i)This schedule shall apply to temporary supplies of light, fan and power loads for the purposes other than mentioned at (A) including illumination/public address/ceremonies for load above 15 kW. (ii) This schedule shall also apply for power taken for construction purposes including civil work by all consumers including Government Departments. Power for construction purposes for any work / project shall be considered from the date of taking first connection for the construction work till completion of the work / project. However, use of electricity through a permanent connection sanctioned for premises owned by the consumers for construction, repair or renovation of existing building, shall not be considered as unauthorised use of electricity as long as the intended purpose/use of the building/appurtenants being constructed is same / permissible in the sanctioned category of the connection.
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2. Rate of Charge
The rate of charge will be corresponding rate of charge in appropriate Schedule Plus 25%. The appropriate rate schedule for the temporary supplies for cane crusher upto 15 BHP given for maximum period of four (4) months will be RTS-7.
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Schedule of Proposed Miscellaneous Charges
Sr. Description Units Proposed rates No. (Rs.) Checking and Testing of Meters 1 a) Single Phase Meters Per meter 50.00 b) Three Phase Meters Per meter 75.00 c) Recording Type Watt-hour Meters Per meter 170.00 d) Maximum Demand Indicator/ LT CT Per meter 350.00 operated Meters e) Tri-vector Meters/ HT Meters with Per meter 1000.00 CT/PT f) Ammeters and Volt Meters Per meter 65.00 g) Special Meters Per meter 335.00 h) Initial Testing of Meters Per meter NIL Subsequent testing and installation other than 2. Per meter 80.00 initial testing 3. Disconnection and Reconnection of supply on consumers request or non-payment of bill (for any disconnection or reconnection the charge will be 50%) a. Consumer having load above 100 BHP/75 kW Per job 600.00 b. Industrial and non-domestic consumers upto Per job 400.00 100 BHP/75 kW c. All other categories of consumers Per job 200.00 Replacement of Meters 3 a. Installation of Meter and its subsequent Per job 75.00 removal in case of Temporary Connections b. Changing of position of Meter Board at the Per job 100.00 consumer's request 6 Checking of Capacitors (other than initial checking) on consumer's request: a. At 400 V / 230 V Per job 150.00 b. At 11 kV and above Per job 300.00
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A9: PRAYER
9.1 The Petitioner prays that the Hon’ble Commission may :
a) Admit the accompanying Petition.
b) Approve provisional true-up of expenses and revenue for FY 2013-14 based on provisional accounts of the said year
c) Approve various controllable and uncontrollable parameters in ARR for FY 2015- 16.
d) Approve the Change (increase) in retail tariffs as proposed.
e) Approve the terms and conditions of tariffs and various matters as proposed in the Petition.
f) Pass suitable orders for implementation of the tariff proposals for FY 2015-16 for making it applicable from April 1, 2015 onwards.
g) Condone any inadvertent omissions/errors/shortcomings and permit Petitioner to add/change/modify/alter this filing and make further submissions as may be required at future date.
h) Pass orders, as the Hon’ble Commission may deem fit and proper keeping in view the facts and circumstances of the case.
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A10: COMPLIANCE TO DIRECTIVES
10.1 The Commission in the Tariff Order dated 10th April 2014 had issued certain directives and the compliance status of which, was submitted by the Petitioner vide letter 2445/UPCL/RM/C-10 dated November 22, 2014.
10.2 This status of compliance with respect to the directive issued by the Commission is provided in the table below:
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Compliance Status of the Directions issued by Hon’ble Uttarakhand Electricity Regulatory Commission in its Tariff Order dated 10-04-2014
S.No. Direction Compliance Status Fictitious Sales (7.2.1) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 directed its As regards the anomalies observed in sales data for FY 2011-12 field officers to record the consumption of Departmental Employees and and FY 2012-13 the Commission, cautions the licensee to desist Pensioners on the basis of actual meter reading. Also directed to record the from continuing such malpractices. The Commission further unmetered consumption in domestic and PTW categories on the basis of directs UPCL to come up with an action plan within 3 months of average load factor of metered consumers in these categories. this order to weed out such fictitious sales and also as to how it proposes to furnish correct and verifiable sales data for these and domestic consumers. (Refer Para 3.2.1) Open Access Sale (7.2.2) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued As regards the recording of Open Access Sales in the instructions to all its field officers that (i) all information in commercial Commercial Diary the Petitioner is directed to frame a statements i.e. CS-3, CS-4 and SG- IV shall be shown only in respect of energy mechanism to correct the previous sales in this regard and to supplied by the respective distribution division to its consumers (ii) no ensure that sales recorded in the Commercial Diary should information in respect of energy drawn by open access consumers through exclude the energy received by a consumer through open access. open access from other sources shall be included in CS-3, CS-4, SG – IV UPCL is required to submit the compliance within three months statements and energy account (iii) the commercial information in respect of of the date of this Order. energy received by the consumers through open access shall regularly be shown in a separate format in the monthly Commercial Diary.
Load Shedding (7.2.3) In this connection, it is submitted that our 11 KV Bagwara Feeder which feeds Some of the consumers submitted that a 32 km Power Control the nearby area of Fulsunga village at Rudrapur, originates from 33/11 kv s/s Plan Rural Feeder named Fulsunga Feeder at village Fulsunga, Bhadaipura Power House and supplies power to five villages, VIZ, Gangpur, Rudrapur originates from Bhadai Pura Power House and Fulsunga, Fulsungi, Shimlabahadur and Ganeshpur. This feeder is about 40 supplies power to five villages, viz. Gangpur, Fulsunga, years old and the length of the same is 35 km . With a view to solve the Fulsungi, Shimlabahadur and Ganeshpur. There are frequent problem and to provide continuous supply to the consumers of the area, UPCL breakdowns of 4-5 hrs daily in this power line due to decided to construct a new 11 KV feeder having length of 2.5 km. The work overloading. In addition, this line is 40-50 years old. Thus, in has been awarded and a line of 27 poles is completed so far. The work is in this regards the Commission directs the Petitioner to inspect the progress and expected to be completed by 31-12-2014. line, take timely action, and submit the report to the Commission within 60 days from the date of this Order. Metering of unmetered connections (7.2.4) As per report submitted to Hon’ble Commission vide UPCL’s letter no.
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S.No. Direction Compliance Status The Commission in its previous Tariff Orders have been 1465/UPCL/RM/J-10, dated 09-07-2014 there were 6542 unmetered repeatedly directing the Petitioner to get its unmetered connections as on 31-03-2014. connections converted into metered connections. However, from UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued the present situation it seems that UPCL has not been taking the instructions all its field officers to meter all the unmetered connections within directives of the Commission in this regard seriously. The time as allowed by Hon’ble Commission. Commission now accords final opportunity to ensure that all As per report submitted to Hon’ble Commission vide UPCL’s letter no. unmetered consumers are metered by September 30, 2014. The 2173/UPCL/RM/J-10, dated 09-10-2014 there were 6373 unmetered Commission intends to discontinue prescribing norms of billing connections as on 31-07-2014. Thus, UPCL has metered 169 unmetered and tariff for unmetered consumers from ensuing years. Failure connections from April to September,2014. to provide meters to unmetered consumers within the time frame The remaining unmetered connections shall be metered by 30-06-2015. mentioned above may result in licensee having no avenue to raise bills to such consumers. (Refer Para 3.2.1 and Para 6.2.1.5) Status of NA/NR, IDF/ADF/RDF (7.2.5.1) Action Plan for reduction of the defective meters to the level of 3% The Petitioner has assured on affidavit that this will be brought approximately was submitted to the Hon’ble Commission vide UPCL’s letter down below 6% by March 2014. This, however, given the no. 1637/ UPCL/ Com/ IDF/ CE, dated 30-07-2014. The summary of the plan progress so far appears unlikely Based on the above, the is as follows :- Commission directs Petitioner to take effective steps to reduce Defective Meters as on 31-03-2014 – 1,42,718 the percentage of these provisional billing cases namely NA/NR, Estimated Addition during the year – 52,050 IDF/RDF/ADF below 3% and submit an Action Plan in this Target to replace the defective meters during the year – 1,41,434 regard within 1 month of this Order. (Refer Para 6.2.1.1). Remaining defective meters as on 31-03-2015 – 53,334 The Commission directs the Petitioner to frame appropriate The status of replacement of defective meters may be shown as follows :- instructions to its field functionaries for periodical review of the Defective Meters as on 31-03-2014 – 1,42,718 metering and billing data and inform the Commission Addition from April to September, 2014 – 77,080 accordingly by 30th June, 2014. The Petitioner is also directed Replaced from April to September, 2014 – 72,804 to ensure that internal audit of each of its division is necessarily Defective meters as on 30-09-2014 –1,46,994 conducted at least once in a year. (Refer Para 6.2.1.1) As regards Internal Audit, it is submitted that for the period from 01-04-2014 Internal Audit has been outsourced and the selected firms of Chartered Accountants started the Audit work. As per decision taken by the Company, Audit of each and every division shall be conducted on alternative year basis. The pending Audit for the period upto FY 2013-14 is being got done through departmental employees. Division wise status of Internal Audit for the period from FY 2010-11 to 2013-14 has been submitted to the Hon’ble Commission vide UPCL’s letter dated 22-11-2014. Replacement of Improper, Non-Functional, Stop/Stuck up The following logic is incorporated in our billing system:- defective or IDF Meters (7.2.5.2) In NA / NR cases, the energy consumption is assessed and billed as per
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S.No. Direction Compliance Status The Commission directs the Petitioner to incorporate logic in its average consumption of last one year average consumption, which is subject to billing software for such bill basis namely NA/NR, IDF adjustment when actual meter reading is taken. Efforts are made to ensure that /ADF/RDF in accordance with The Electricity Supply Code & such provisional billing is not continued for more than two billing cycles at a Standard of Performance Regulations of the Commission. The stretch. However, in some cases the same is not ensured due to absence of the Commission also directs the Petitioner to restrict percentage consumers in their premises and in that case UPCL has no option except to defective meters to 3% as required by the Regulation and submit raise bill on provisional basis. action plan to achieve compliance to Regulation by 30.09.2014. In case of defective meter and defective reading cases, the energy consumption Further, the Commission directs the Petitioner to ascertain the is assessed on the basis of average consumption of last three billing cycles reasons for high meter failure rate and submit its report within 2 immediately preceding the date of the meter being found or being reported months of the Order. (Refer Para 6.2.1.2) defective. Efforts are made to ensure that the defective meters are replaced within three months but it is not ensured in some cases due to high number of outstanding defective meter cases and in that case UPCL has no option except to raise bill on normative basis. Action Plan for reduction of the defective meters to the level of 3% approximately was submitted to the Hon’ble Commission vide UPCL’s letter no. 1637/ UPCL/Com/ IDF/ CE, dated 30-07-2014. The summary of the plan is as follows :- Defective Meters as on 31-03-2014 – 1,42,718 Estimated Addition during the year – 52,050 Target to replace the defective meters during the year – 1,41,434 Remaining defective meters as on 31-03-2015 – 53,334 The status of replacement of defective meters may be shown as follows :- Defective Meters as on 31-03-2014 – 1,42,718 Addition from April to September, 2014 – 77,080 Replaced from April to September, 2014 – 72,804 Defective meters as on 30-09-2014 –1,46,994
Replacement of Mechanical Meters (7.2.5.3) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued The Commission directs Petitioner to replace all the existing instructions to all its field officers to replace all Electro Mechanical Meter by electro-mechanical meters by static/electronic meters by 30th static / electronic meters within time as directed by Hon’ble Commission. September, 2014 of this Order. (Refer Para 6.2.1.3) The status of replacement of mechanical meters may be shown as follows :- Meters as on 31-03-2014 - 1,83,005 Replaced from April to September, 2014 - 11,072 Remaining meters as on 30-09-2014 - 1,71,933
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S.No. Direction Compliance Status Ghost/Fictitious Consumers (7.2.5.4) There were 1135 remaining Ghost Consumers as on 31-03-2014. These The Commission in its previous Tariff Orders had directed the consumers have been targeted to write off from the billing data base in FY Petitioner for identifying and writing off ghost/fictitious 2014-15. The remaining such consumers as on 31-07-2014 are 1057. consumers from its billing database. However, from the above table, it can be seen that the Petitioner has not made any concerted efforts in identifying and writing off such consumers from its billing database since in a period of around 1 year and nine months it could not remove 2610 consumers in entirety. The Commission is of the view that there is an urgent need for identifying and writing off such consumers from its billing database as existence of such consumers in the database prevents proper energy accounting resulting in erroneous figures of both technical & Commercial losses (AT&C losses). Therefore, the Petitioner is once again directed to write off ghost/fictitious/non-existent consumers from its billing database under a transparent policy framed by the Petitioner. (Refer Para 6.2.1.4)
NB & SB Cases (7.2.6.1) There are 1,42,332 NB / SB cases as on 31-07-2014. All the divisions have The Commission directed the Petitioner to conduct regular drive been directed during the meetings to finalize these cases at the earliest. for finalizing of NB/SB consumers and submit the month-wise Division wise and month wise revenue collection targets have been fixed for targets for the same. The Petitioner has submitted conservative FY 2014-15. These targets also includes recovery of arrears. A copy of these targets for liquidating the cases. targets has been submitted to the Hon’ble Commission vide UPCL’s letter Accordingly, the Petitioner is hereby again directed to liquidate dated 22-11-2014. and finalize NB/SB cases and set a target of recovering at least The details of recovery of arrears during FY 2014-15 (upto July) are as 25% outstanding arrears out of current outstanding arrears follows:- within 6 months from the date of issue of this Order. (Refer Para 6.2.2.1) (Figures in Rs. Cr.) Category KCC Non-KCC Total Domestic 0.15 19.59 19.74 Non-Domestic 2.64 3.83 6.47 Industry 8.93 0.08 9.01 PTW - 0.42 0.42
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S.No. Direction Compliance Status Total 11.72 23.92 35.64
The details of recovery of Government Arrears during FY 2014-15 (upto September) are as follows:- Street Lights – Rs. 43.31 Cr. Government Irrigation – Rs. 11.45 Cr. Jal Sansthan – Rs. 75.00 Cr. Total - Rs.129.76 Cr. - Outstanding Arrears (7.2.6.2) Division wise revenue collection targets have been fixed and submitted to the The Commission directs Petitioner to make sincere efforts in Hon’ble Commission vide UPCL’s letter dated 22-11-2014. mobilizing its resources to continuously make efforts throughout Daily revenue collection monitoring at sub divisional level is being done at the year for collection of Arrears under a structured/programme Corporate Office. formed by the Petitioner and besides taking corrective actions Collected Rs. 35.64 Cr. arrear in FY 2014-15 (upto July) from Non- Govt. against the habitual defaulters. categories. Collected Rs. 129.76 Cr. (towards current assessment and arrear) in FY 2014- 15 (up to September) from Govt. categories.
Status of KCC Consumers (7.2.6.3) In this connection, it is submitted that the following analysis are regularly The Commission directs the Petitioner that KCC consumers being done at KCC Billing Centre :- having less load factor should be verified and average Load Factor less than 10 %. consumption pattern and abnormality in consumption pattern Load factor of steel units less than 50%. should be checked and duly analysed. The Commission also Load factor of ice factories during season less than 70%. directs petitioner to check KCC consumers who have exceeded Load factor of pulp & paper industry less than 50%. their sanctioned/contracted demand and take corrective action in Load factor of stone crushers less than 40%. such cases. Consumption variation analysis (less than 50% from previous month). Excess demand for last three billing cycles. The list of above cases are forwarded to field units with the direction to check such cases and to take corrective action in case of any anomaly. Status of Revenue realisation per unit sold (7.2.6.4) Division wise and month wise revenue collection targets have been fixed for The Commission directs the Petitioner to take immediate steps FY 2014-15. These targets also includes recovery of arrears. to frame a time bound programme along with laying down Daily revenue collection monitoring at sub division level is being done at standard procedure for realising pending arrears and accordingly Corporate Office. a report on the action taken, arrears realised, arrears remaining Field officers have been instructed to disconnect the supply of defaulting outstanding and reasons for the same should be submitted to the consumers. Commission within three months of the issue of this Order. Disconnection of all high value consumers is being ensured in case of non -
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S.No. Direction Compliance Status Further, the Petitioner should meticulously mobilize its payment of undisputed electricity dues. resources and take effective actions in disconnection of the KCC consumers having undisputed outstanding dues/arrears and a report on the same should also be submitted to the Commission within three months of the issue of this Order.
Interest on GPF Trust (7.2.7) The appointment of Auditor to conduct the Audit of Accounts of trust is in The Petitioner’s management is directed to look into this issue process . The completion of Audit is targeted by 30-06-2015. and get the accounts prepared and audit conducted of the Trust in a timely manner to avoid any misappropriation of funds and submit the report on the same along with the next filing. (Refer Para 3.2.7) Treatment of Assets sent for repairs (7.2.8) The Accounts of UPCL are audited by statutory auditor under the provisions of UPCL is directed to get this examined through an external the Companies Act and by Comptroller & Auditor General of India. The audit agency, preferably a CA firm and submit an audited report on for the period upto FY2012-13 has been completed and for FY 2013-14 is in the additions made by it since FY 2001-02 and classify them process. Hence, Hon’ble Commission is requested to kindly be pleased that into new additions and additions made after repairs of existing there is no further Audit of Assets is required. assets and the financing of the new assets along with the tariff Central Government, in consultation with Comptroller & Auditor of India and petition for FY 2015-16 failing which the Commission would be State Governments, had issued the Electricity ( Supply) Annual Accounts constraint not to allow any capitalization thereafter. Similarly, Rules, 1985.The Accounts of UPCL are being maintained as per the provisions UPCL is also required to submit the breakup of deduction in of said accounting rules and therefore, Hon’ble Commission is requested to GFA into assets sent for repairs and assets written off since FY kindly considered that there is no need to change the accounting for assets sent 2001-02. UPCL is also directed to submit quarterly status in this to repair. regard (Refer Para 3.2.8) The Commission directs the Petitioner to submit its response/comment on the approach discussed in Chapter 3 of Truing up of FY 2011-12 and FY 2012-13 regarding the treatment of assets sent to repair to the Commission within 3 months of this Order. The Commission based on UPCL’s response would finalise this approach to be incorporated by UPCL in its accounts from FY 2014-15 onwards. (Refer Para 3.2.8) Segregation of LT and HT/ EHT Works (7.2.9) The Audited details of LT and HT works capitalized from FY 2007-08 to FY The delay on the account of segregation of LT/HT works on the 2011-12 have been submitted to the Hon’ble Commission vide UPCL’s letter
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S.No. Direction Compliance Status part of the Petitioner clearly shows inefficiency of the Petitioner dated 07-10-2013. As regards shortcomings pointed out by the Hon’ble for which it should be penalized and, accordingly, in view of the Commission in the report, Hon’ble Commission is requested to kindly either above facts the Commission directs the Petitioner to provide the consider the figures of accounts or audit report and allow eligible return/ desired information at the earliest to carry out the truing up in expenses to UPCL in the matter. Delay in allowing the eligible return is this regard. As the delay in providing information is on account adversely affecting the financial position of the Company. of the Petitioner, no carrying cost will be allowed to the Petitioner on the delayed approval of the capitalization in this regard. (Refer Para 3.2.5.2)
Provision for bad and doubtful debts (7.2.10) The Audit of receivables of UPCL as on 31-03-2012 is completed and the following are the findings of the Auditors:- In compliance to the directives of the Commission regarding the Arrears as per ledger – Rs. 2117.20 Cr. audit of receivables the Petitioner has submitted that the works Arrears identified as fictitious as per ledger – Rs. 153.56 Cr. of audit of receivables has already been awarded and the audit Arrears in Commercial Diary – Rs. 1952.47 Cr. report is expected to be received in March 2014. The Petitioner Arrears as per Accounts – Rs. 2026.35 Cr. is also directed to submit an Action Plan as to how it intends to The division wise summary of the Audit Report has been submitted to the move forward upon receipt of the Audit Report within one Hon’ble Commission vide UPCL’s letter dated 22-11-2014. month of the date of this Order along with the Audit Report. With a view to write off fictitious and irrecoverable arrears, we have prepared (Refer Para 3.2.9) a policy for writing off of Bad Debts. The said policy is under finalization and on finalization of the same exercise for writing off of fictitious and irrecoverable arrears shall be taken up. Billing of Departmental Employees (7.2.11) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 directed its The Petitioner is directed to ensure appropriate modification in field officers to record the consumption of Departmental Employees and its billing software so that revenue for sale to the departmental Pensioners on the basis of actual meter reading. employees is recognised at the slab wise rate prescribed for UPCL has incorporated the logic in its billing software for billing of the domestic consumers. The difference between revenue so departmental employees and pensioners. The basic information required for recognised and actual amount recovered from its employees be start of billing is being collected in respect of departmental employees and shown as subsidy in its annual accounts. (Refer Para 3.2.13) pensioners, thereafter billing shall be started as per the direction of Hon’ble Commission. Power Purchase (7.2.12) UPCL is maintaining the power purchase (com) data from April, 2014 onwards The Petitioner is directed that from FY 2013-14 onwards it as per the methodology suggested by the Hon’ble Commission. However, we should record fixed charges and variable charges for a given are facing difficulty to convert the already prepared data for FY 2013-14 as per period separately and the past adjustments to be recorded methodology suggested by Hon’ble Commission. Hon’ble Commission is separately further segregating it under fixed charges, variable requested to kindly exempt UPCL from this direction. charges and other costs. The Petitioner should revise its The annual accounts for FY 2013-14 have been prepared and the audit of the
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S.No. Direction Compliance Status COMDATA for FY 2013-14 as per above methodology and same is in process. In these accounts, power purchase cost has been shown in submit the same to the Commission within 4 months from the the old format. From FY2014-15 onwards power purchase costs will be shown date of this Order. The Petitioner is also directed to ensure that in the accounts as per the methodology directed by Hon’ble Commission. cost of power purchase in its accounts for FY 2013-14 onwards is captured as mentioned above. (Refer Para 4.4.9.2) UI Overdrawal and Underdrawal (7.2.13) This data is not available in the bills received from NRLDC for UI overdrawal UPCL is directed to reconcile the UI data submitted by it with and we also could not derive this data from the information posted at the the UI data available on the Northern Region Power Committee website of NRLDC. In this connection, it is submitted that UPCL is (NRPC) and submit the same along with the Tariff Petition for determined to overdraw from grid within limits prescribed by the Hon’ble FY 2015-16 failing which the Commission would be forced to Commission. There may be any little amount of energy overdrawn beyond the carry out the necessary corrections in this regard based on the permissible limit and this is unintentional. Hon’ble Commission is requested to data available on NRPC’s website. (Refer Para 3.1.4) kindly exempt us for submission of this information. Subsidy from GoU for disaster affected areas (7.2.14) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued The Petitioner has submitted that as per the directions of the instructions to the field officers to maintain the billing data of disaster affected GoU the disaster affected areas have been exempted from areas exempted from paying electricity bills. They have been directed to show paying electricity bills. The Petitioner would be supplying free the said details in regular monthly commercial diary. power to such consumers therefore, a separate record of the same has to be maintained. The Petitioner is required to maintain a separate account for the sales and revenue data with respect to subsidy applicable for such consumers. (Refer Para 4.5.2) Capitalization of Assets (7.2.15) The filing of petition seeking approval of the Hon’ble Commission for capital The Petitioner is directed to seek approval of the Commission works shall be ensured as per the provisions of regulations. before starting any capital works in accordance with the Regulations, failing which the works not approved by the Commission would not be considered during truing up. (Refer Para 4.5.2)
Capitalization Policy and Fixed Asset Registers (7.2.16) Fixed Assets Register for the period upto March, 2010 had already been The Commission has observed that the Petitioner is not submitted to the Hon’ble Commission. complying with the directives of the Commission in this regards. The Fixed Assets Register for FY 2010-11, 2011-12 and 2012-13 have been Hence for the final time the Commission is reiterating its submitted to the Hon’ble Commission vide UPCL’s letter no. directive to the Petitioner in this regard. The Petitioner once 1889/UPCL/RM/C-10, dated 29-08-2014. again directed to frame a capitalization policy and maintain As per direction of Hon’ble Commission, depreciation shall be claimed on the fixed asset registers and submit the submit the same along with rates specified in the regulations for each class of asset shown in the FAR.
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S.No. Direction Compliance Status the next filing and also claim depreciation based on the rates specified in the Regulations for each class of asset, however, the Commission would like to point out that in case the Petitioner fails to comply with the directions of the Commission, the Commission would be compelled to take strict actions against the Petitioner. (Refer Para 4.7) Installation of Meter (7.2.17) Regulation 2 (2) (a) of the Central Electricity Authority (Installation and As regards the Objection raised by the Railways, the Petitioner Operation of Meters) Amendment Regulations, 2010 provides that the is required to ensure installation of appropriate meters for billing consumer meter shall be installed by the distribution licensee either at the purpose at the consumer’s premises, i.e. railway traction sub- consumer premises or outside the consumer premises. Hence, it is the station within three months from the date of issue of this Order discretion of distribution licensee to provide the meter either at consumer and report compliance by August 31, 2014. (Refer Para 2.23.12) premises or outside the consumer premises. UPCL has installed the consumer meter at Grid substation i.e. outside the consumer premises. In view of the submission made hereinabove, Hon’ble Commission is requested to kindly review this direction and may be pleased that the installation of consumer meter at the grid substation is as per the provisions of law. Consumers under Snow Bound (RTS-1 Category) (7.2.18) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued The Commission directs the Petitioner to check this aspect about instructions to all the Executive Engineer of the distribution divisions covering existence or non existence of consumers in Snowbound Area any hilly areas to contact the concerned District Magistrate and to seek the and submit the same with evidence duly validating its claim in copies of orders by which any area has been notified as snow bound / snow this regard in the Annual Performance Review Petition for FY line. 2014-15. (Refer Para 5.3.3.2) During discussion in the meetings, field officers informed that no snow bound / snow line areas have been notified in the supply area of their distribution divisions / circles / zones and therefore no consumer / consumption details are being shown in the commercial statements. In view of the submission made hereinabove, Hon’ble Commission is requested to kindly abolish the rate schedule RTS –IA (Snow bound). kWh Tariff (7.2.19) UPCL vide its letter no. 1319/UPCL/RM/C-10, dated 17-06-2014 issued The Commission directs the Petitioner to replace the old meters instructions to the field units to replace all meters in public water works with new meters capable of recording kVAh meters for all category not capable of recording Kvah unit of electricity by new meters PWW consumers within three months of this Order and also capable of recording Kwh unit of electricity. This work is expected to be furnish basis of billing so far done to these consumers with completed by 31-03-2015. explanation for not providing appropriate meters so far by July 31, 2014. (Refer Para 5.3.3.3)
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Tariff Petition for FY 2015-16 along with the True-up of FY 2013-14
S.No. Direction Compliance Status MCG Charges (7.2.20) Necessary modification has been made in the billing software of UPCL as The Commission directs that the licensee tenders a certificate directed by Hon’ble Commission at para 5.3.3.5 of the Tariff Order to charge under affidavit, that appropriate modification based on the above the MCG from PTW Consumers. This has been reported to the Hon’ble have been incorporated in its billing software on or before June Commission vide UPCL’s letter no. 1602/UPCL/RM/B-14, dated 24-07-2014. 15, 2014. (Refer Para 5.3.3.5)
Adjustment of Revenue Surplus (7.2.21) Hon’ble Commission vide its order dated 11-09-2014 approved the claim of The Petitioner is directed to adjust the estimated revenue surplus UPCL of FCA amounting to Rs. 19.80 Cr. and ordered to adjust the same from for FY 2014-15 in FCA if it becomes due as applicable for FY the revenue surplus of Rs. 20.92 Cr. Accordingly, after the adjustment of FCA 2014-15 and shall continue to adjust the surplus of Rs. 20.92 for the first quarter of FY 2014-15, UPCL had a surplus of Rs. 1.12 Cr. Crore till it is exhausted, from the Fuel Cost Adjustment UPCL has taken action as per the orders of the Hon’ble Commission. becoming due for FY 2014-15. (Refer Para 5.3.1) Income from electricity distribution by UJVN Ltd. to Sundry UJVN Limited has not handed over so far any distribution business to UPCL. Consumers (7.2.22) The Commission, in this regard, has directed UJVN Ltd. in the Order dated 10.04.2014 to hand over all of its distribution business to UPCL within 6 months of this Order. The Commission also directs UPCL to take charge of the distribution business carried out by UJVN Ltd., within 6 months of this Order. UJVN Ltd. has also been directed to submit bi-monthly status of the implementation of the aforesaid action plan. Accordingly, UPCL is also directed submit bi-monthly status of the compliance on this issue.
Conclusion (7.3) UPCL implemented the Tariff Order as per direction of Hon’ble Commission The approved tariff shall be effective from 1-04-2014 and and informed about such implementation vide UPCL’s letter no. 1084/ UPCL/ continue to be applicable till revised by the Commission. RM/B-14, dated 19-05-2014.
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