Jharkhand State Electricity Regulatory Commission Order on True-up for FY 2016-17& FY 2017-18, Annual Performance Review for FY 2018-19 and ARR & Tariff for FY 2019-20 for Jharkhand Bijli Vitran Nigam Limited (JBVNL) Ranchi February 28, 2019 True-up for FY 2016-17 & FY 2017-18, APR for FY 2018-19 and ARR & Tariff for FY 2019-20 CONTENTS A 1: INTRODUCTION............................................................................................................ 14 Jharkhand State Electricity Regulatory Commission ................................................................ 14 The Petitioner - Jharkhand Bijli Vitran Nigam Limited ........................................................... 16 The Petitioner’s Prayers ............................................................................................................ 17 Scope of the Present Order ........................................................................................................ 17 A 2: PROCEDURAL HISTORY ............................................................................................ 19 Background ............................................................................................................................... 19 Information Gaps in the Petition ............................................................................................... 19 Inviting Public Comments/Suggestions .................................................................................... 19 Meeting of the State Advisory Committee ................................................................................ 20 Submission of Comments/Suggestions and Conduct of Public Hearing .................................. 20 A 3: BRIEF FACTS OF THE PETITION ............................................................................. 22 A. True-up for FY 2016-17 and FY 2017-18 ...................................................................... 22 B. Annual Performance Review for FY 2018-19 ............................................................... 24 C. ARR and Tariff for FY 2019-20 .................................................................................... 26 A 4: PUBLIC CONSULTATION PROCESS ....................................................................... 30 Advertisement of Public Hearing .............................................................................................. 30 Consumer Representative in CGRF Committee ....................................................................... 30 Toll Free Number ...................................................................................................................... 31 Allowing Other Licensee to operate in JBVNL Area ............................................................... 31 Sales .......................................................................................................................................... 32 Power Purchase Cost ................................................................................................................. 34 Intra-State Transmission Loss ................................................................................................... 36 T&D Loss levels of JBVNL/ Dis-incentive for the non-achievement of T&D Loss ................ 37 Capital Expenditure & Gross Fixed Assets ............................................................................... 38 O&M expenses .......................................................................................................................... 39 Provision of Bad & Doubtful Debts .......................................................................................... 40 Revenue from tariff, Govt. Subsidy, RGF ................................................................................ 41 Treatment of Revenue Gap ....................................................................................................... 43 Removal of Clause 13 of HT Agreement .................................................................................. 45 Compliance of Directive ........................................................................................................... 47 Jharkhand State Electricity Regulatory Commission 2 | P a g e True-up for FY 2016-17 & FY 2017-18, APR for FY 2018-19 and ARR & Tariff for FY 2019-20 Voltage Wise Cost of Supply .................................................................................................... 47 Load Factor Rebate ................................................................................................................... 48 Removal of Installation based tariff for LTIS consumer .......................................................... 49 Miscellaneous Charges .............................................................................................................. 49 Interest on Consumer Security Deposit ..................................................................................... 50 Disbursement of Subsidy Amount ............................................................................................ 51 Quality of supply/Hours of Supply ........................................................................................... 52 Issue related to prolonged Legal Cases ..................................................................................... 53 Feeder Segregation .................................................................................................................... 54 Issues related to HTSS Category ............................................................................................... 54 Violation of Accounting Standards/Reliability of Audited Accounts ....................................... 55 Issue related to Categorization of Consumer ............................................................................ 56 Issues Related to Disconnection & FIR .................................................................................... 57 A 5: TRUE-UP FOR FY 2016-17 AND FY 2017-18 ............................................................. 59 Energy Sales .............................................................................................................................. 59 Power Purchase Quantum and Cost .......................................................................................... 60 Energy Requirement and Energy Availability .......................................................................... 64 Transmission Charges ............................................................................................................... 67 Capital Expenditure and Capitalisation ..................................................................................... 68 Consumer Contribution, Grants and Subsidies ......................................................................... 70 Operation & Maintenance Expenses ......................................................................................... 72 Depreciation .............................................................................................................................. 73 Interest on Loan ......................................................................................................................... 74 Interest on Consumer Security Deposit ..................................................................................... 76 Interest on Working Capital (IoWC) ......................................................................................... 77 Return on Equity ....................................................................................................................... 78 Non-Tariff Income (NTI) .......................................................................................................... 79 Disallowances on account of Excessive AT&C Losses ............................................................ 81 Resource Gap Funding (RGF)................................................................................................... 84 Summary of ARR for FY 2016-17 and FY 2017-18 ................................................................ 85 A 6: ANNUAL PEFORMANCE REVIEW FOR FY 2018-19 ............................................. 88 Energy Sales .............................................................................................................................. 88 Power Purchase Quantum and Cost .......................................................................................... 91 Energy Requirement and Energy Availability .......................................................................... 96 Jharkhand State Electricity Regulatory Commission 3 | P a g e True-up for FY 2016-17 & FY 2017-18, APR for FY 2018-19 and ARR & Tariff for FY 2019-20 Transmission Charges ............................................................................................................... 98 Capital Expenditure and Capitalisation ..................................................................................... 99 Consumer Contribution, Grants and Subsidies ....................................................................... 102 Operation & Maintenance Expenses ....................................................................................... 103 Depreciation ............................................................................................................................ 106 Interest on Loan 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