SCO NO. 220-221, SECTOR-34-A
PETITION NO. 25 OF 2009
IN THE MATTER OF:
ANNUAL REVENUE REQUIREMENT
FILED BY THE
FOR THE FINANCIAL YEAR 2010-11
PRESENT : Mr. Jai Singh Gill,
Chairman
Mr. Satpal Singh Pall, Member
Mr.
Virinder Singh, Member
Date of Order:
ORDER
The Punjab State
Electricity Regulatory Commission (Commission), in exercise of powers vested in
it under the Electricity Act, 2003 (Act) passes this order determining the
Annual Revenue Requirement (ARR) and Tariff for supply of electricity by the
Punjab State Electricity Board (Board)/Successor Entities to consumers of the
State of Punjab for the year 2010-11.
The ARR filed by the Board, facts
presented by the Board in its various filings, objections received by the
Commission from consumer organizations and individuals, issues raised by the public in hearings held
at Bathinda, Chandigarh, Ludhiana and
Jalandhar, the responses of the Board to the objections and observations of the
Government of Punjab (GoP) in this respect have been considered. The State
Advisory Committee constituted by the Commission under Section 87 of the Act
has also been consulted and all other relevant facts and material on record
have been perused before passing this Order.
1.1
Background
The Commission has
in its previous seven Tariff Orders determined tariff in pursuance of the ARRs
and Tariff Applications submitted by the Board for the years 2002-03 to
2006-07, 2008-09 and 2009-10. Tariff Order for the year 2007-08 had been passed
by the Commission in suomotu proceedings.
1.2 ARR for the year 2010-11
The Board filed the
ARR for 2010-11 on 30.11.2009. Therein the Board had worked out a cumulative
revenue gap of Rs.6575 crore for the year 2010-11 including carried over gaps
of 2008-09 and 2009-10. As the petition filed by the Board did not contain any
proposal to cover this gap a letter dated 1.12.2009 was issued to the Board
asking it to submit a tariff or any other proposal to cover this gap. The Board
in its response on 3.12.2009 replied that the Commission may determine the gap
and fix tariff accordingly based on the details furnished by it in its ARR. The
Commission took the ARR on record on 7.12.2009. On scrutiny it was noticed that
the ARR was deficient in some respects and in its communication of 01.01.2010
the Commission sought further information which was furnished by the Board in
its letters dated 28.1.2010, 25.2.2010 and 26.2.2010.
The Annual Revenue
Requirement determined by the Commission in this Tariff Order is based on the
petition filed by the Punjab State Electricity Board, operating as an
integrated utility performing function of Generation, Transmission and
Distribution of electricity. The tariff determination by the Commission is
based on the audited accounts of 2008-09, revised estimates of 2009-10 and
projections of 2010-11 as submitted by the Board.
The Commission notes
that the GoP, in exercise of powers conferred under section 131, 132, 133 and
other enabling provisions of the Electricity Act, 2003, has on April 16, 2010,
notified that the Board constituted under section 5 of the Electricity Supply
Act, 1948 has ceased to exist and stands replaced by two corporate entities
namely Punjab State Power Corporation Ltd (POWERCOM) and Punjab State
Transmission Corporation Ltd (TRANSCO), referred to as Successor Entities. The
Government has also notified a Transfer Scheme in Notification No.1/9/08-EB(PR)
/196 dated 16th April, 2010 which details the process of
classification/division of assets and liabilities, functions, transfer of
personnel etc. between the two entities.
Clause 8, of the
aforementioned Notification, clearly states that all pending proceedings by or
against the Board on the Effective Date of Transfer (to be reckoned as
16.04.2010) of the undertaking to the Transferee shall not abate or discontinue
or otherwise in any way be effected prejudicially by reasons of the transfer
provided in this Scheme, and such proceedings may be continued by or against
the Transferee(s). Accordingly, the Commission treats the ARR Petition filed by
the Board on 30.11.2009, as a pending petition of POWERCOM and TRANSCO.
The Commission also
observes that the Provisional Balance Sheets, ending 31.03.09, of the two
successor entities, as appended to the above mentioned Notification shows
significant variation when compared to the audited balance sheet of the
integrated utility. The Commission understands that the Balance Sheet so
determined is provisional and shall be firmed up in due course as would be
evident from clause 9 of the Transfer Scheme which explicitly states that the
classification and transfer under this scheme, is provisional and will be made
final upon the expiry of 12 months from the Effective Date of Transfer or 6
months after the audited accounts are available, whichever is later. Also,
clause 3 of the Transfer Scheme extinguishes and cancels all assets and
liabilities of the Board towards GoP and vice-versa whereas in clause 5 they
are restored and passed on to the Successor Entities as is seen from the
provisional Balance Sheet of these entities wherein GoP loans have been shown
as outstanding. In these circumstances, the Commission for the purpose of
tariff determination deems proper to rely on the information filed by the Board
in its ARR petition and not on the Provisional Balance Sheet, yet to be
approved by the CAG.
Various charges
approved in the Tariff Order of 2010-11 are based on prudent determination of
generation, transmission & distribution cost and the formation of two
separate entities as a result of unbundling may not immediately warrant
re-determination of cost and further apportionment of revenue is possible as
per GoP (Deptt of Power) Notification No 229 dated 16.04.2010. However, the
Successor Entities would be free to submit fresh petitions which shall be duly
considered by the Commission. During True Up and review of the ARR, the
Commission generally adheres to existing norms and principles but consequent
upon the implementation of the Transfer Scheme, it will be open to modification
of norms when required in the subsequent ARRs.
1.3 Invitation of objections and public
hearings
A public notice was
published by the Board in the Tribune, The Hindustan Times, Dainik Bhaskar and
Daily Ajit on
The Commission
received 24 written objections by 19.01.2010 and 16 additional written
objections thereafter. The Commission decided to take all these objections into
consideration.
Number of
objections received from individual consumers, consumer groups, organizations
and others are detailed below:
|
Sr. No. |
Category |
No. of Objections |
|
1. |
Chambers
of Commerce |
3 |
|
2. |
Industrial
Associations |
10 |
|
3 |
Industry |
11 |
|
4 |
Railways |
1 |
|
5 |
PSEB
Engineers/Employees Association |
2 |
|
6 |
Individuals |
10 |
|
7 |
Govt.
of |
1 |
|
8 |
Forums |
2 |
|
|
Total |
40 |
The list of
objectors is given in Annexure-I to
this Tariff Order. The Board submitted its comments to all the objections which
were made available to the respective objectors.
The Commission
decided to hold public hearings at Bathinda,
|
Venue |
Date
& time of public hearing |
Category of consumers to be heard. |
|
|
BATHINDA Circuit
House, Civil Lines, Near D.C.Residence, Bathinda. |
|
All
consumers/organizations of the
area |
|
|
Commission
Office i.e. SCO No.220-221, Sector 34-A, |
|
Industry |
|
|
3.00 PM onwards |
Agriculture
consumers and their unions |
||
|
Commission
Office i.e. SCO No.220-221, Sector 34-A, |
|
All
consumers except Industry, Agriculture consumers and staff unions of the
Board. |
|
|
|
Staff
unions of Board and other organizations. |
||
|
Circuit
House, |
|
All
consumers/ organizations of the area. |
|
|
JALANDHAR Circuit
House, Skylark Chowk, Opp.
Skylark Hotel,
Jalandhar. |
|
All
consumers/ organizations of the area. |
|
Through public
notices published in different newspapers, it was intimated that the Commission
will conduct a public hearing at
The public hearings
were held as per schedule and objectors, general public and the Board were
heard by the Commission. A summary of the issues raised, the response of the
Board and the views of the Commission are contained in Annexure-II of this Tariff Order.
1.4
The Government was approached by the Commission through
letter dated 21.12.2009 seeking its views on the ARR to which the Government
responded on 10.3.2010, which has been taken note of by the Commission.
1.5
State Advisory Committee
The State Advisory
Committee set up under Section 87 of the Act, discussed the Board’s ARR in a
meeting convened for the purpose on 10.02.2010. The minutes of the meeting of
the State Advisory Committee are enclosed as Annexure–III to this Order.
The Commission has
thus taken the necessary steps to ensure that due process, as contemplated
under the Act and Regulations framed by the Commission, is followed and
adequate opportunity given to all stakeholders in presenting their views.
1.6
Compliance of Directives
In its previous
Tariff Orders, the Commission had issued certain directives to the Board in the
public interest. A summary of directives issued along with the comments of the
Commission is given in Annexure-IV
of this Tariff Order.
Chapter 2
True-up for the
year 2008-09
2.1.
Background
The Commission approved the ARR
and Tariff for the year 2008-09 in its Tariff Order dated
2.2.
Energy Demand (Sales)
2.2.1.
The sales
projected by the Board during the determination of ARR for the year 2008-09,
sales approved by the Commission in the Tariff Order of the year 2008-09, revised
estimates furnished during determination of ARR of the year 2009-10, sales
approved by the Commission in review and actual sales figures now given by the
Board are summarized in Table 2.1 below.
Table 2.1: Energy Sales – 2008-09
(MUs)
|
Sr. No. |
Category |
Projected by PSEB during determination of ARR 08-09 |
Approved by the Commission in T.O.
08-09 |
Revised Estimates of PSEB during
determination of ARR of 09-10 |
Approved by the Commission in
review |
Actual as in the ARR of 10-11 |
Now approved by the Commission |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
1 |
Domestic |
6476 |
6449 |
6692 |
6456 |
6695 |
6695 |
|
2 |
Non-Residential |
2039 |
2030 |
2067 |
1911 |
1967 |
1967 |
|
3 |
Small
Power |
734 |
748 |
731 |
712 |
743 |
743 |
|
4 |
Medium
Supply |
1571 |
1542 |
1555 |
1489 |
1556 |
1556 |
|
5 |
Large
Supply |
9394 |
9359 |
9081 |
8587 |
8747 |
8747 |
|
6 |
Public
Lighting |
153 |
149 |
147 |
137 |
147 |
147 |
|
7 |
Bulk
Supply |
485 |
497 |
507 |
477 |
480 |
480 |
|
8 |
Railway
Traction |
110 |
111 |
118 |
123 |
126 |
126 |
|
9 |
Total
Metered sales (within State) |
20962 |
20885 |
20898 |
19892 |
20461 |
20461 |
|
10 |
Agriculture
pump sets |
10014 |
9408 |
9766 |
8374 |
9349 |
8395 |
|
11 |
Total
sales within the State |
30976 |
30293 |
30664 |
28266 |
29810 |
28856 |
|
12 |
Common
pool |
303 |
303 |
303 |
303 |
302 |
302 |
|
13 |
Outside
State sales |
2036 |
2036 |
1541 |
2323 |
2515 |
2515 |
|
14 |
Total
(11+12+13) |
33315 |
32632 |
32508 |
30892 |
32627 |
31673 |
The Board has
furnished the actual total sales at 32627 MUs for the year 2008-09 as per
audited accounts including the theft of energy of 396 MUs. This theft of energy
has not been apportioned to different consumer categories in the audited
accounts but the Board in its ARR petition (Vol. 1) for the year 2010-11 has
submitted category-wise sales for year 2008-09 by apportioning such energy to each
category of consumers on pro-rata basis which is as per column 7 of Table 2.1.
2.2.2 Metered Sales: In metered sales, the
Board has included 396 MUs of energy on account of theft. The revenue on this
account has been shown as Rs.63.80 crore in the annual accounts which is not
commensurate with the revenue accruing from sale
of energy of 396 MUs to metered categories. In the tariff order for 2009-10,
the Commission accepted the revenue and the sales figures for 2007-08 as per
the audited accounts of the Board since the same were audited by AG (
The Commission notes
that the Board had been asked to correctly account for the amount assessed on
account of theft as per actual consumer categories only in the Tariff Order of
2009-10. Thus, action on the part of the Board could at best be taken for the
year 2009-10 and this aspect will be considered by the Commission at the time
of review for that year. Accordingly, the Commission estimates sales for the
year 2008-09 on the basis of actuals given in the audited accounts for that
year and adjusted by adding theft of energy to the extent of 396 MUs to
different metered consumer categories on a pro-rata basis. The Commission,
thus, approves metered sales within the State at 20461 MUs.
The Commission accepts common pool sales at 302 MUs and
outside State sales as 2515 MUs on the basis of actuals as given in the audited
accounts for 2008-09.
Metered sales now
approved by the Commission are as shown in column 8 of Table 2.1.
2.2.3
AP Consumption: The Commission in its Tariff Order of the
year 2008-09 approved AP consumption of 9408 MUs after allowing a normative
growth of 5% over the revised approved consumption of 8960 MUs for the previous
year (year 2007-08). While doing so, the Commission observed that the
methodology of computing AP consumption on the basis of sample meter readings
and connected load needs further refinement. Based on the observation of the
Commission in the Tariff Order of 2008-09 and Board’s willingness to undertake
a validation exercise through an independent agency, the Commission appointed
M/s
The Board in its ARR petition has submitted that very little time was
available to examine in detail both the approach adopted by the Agency and the
estimated AP consumption based thereon and the final report of the Agency was
received by the Board only a month before the tariff petition for 2010-11 was
to be filed. The Board has, therefore, requested that it should be permitted to
submit further comments on the final conclusions of the Agency after submission
of the ARR in case need therefor is envisaged by the Board. However, the Board
has made the following observations in the ARR petition:
·
The Agency, in the preliminary report, had pointed out that
the connected load in case of several meters was higher on account of VDS or
other such reasons in comparison with the records being maintained by the
Board. Based on these findings, the connected load of such meters was revised
to calculate the consumption and thereafter the load factor. If the operating
load is found to be higher than the load in the ledgers, then under such
circumstances, the better way to estimate the load would be only through
correct energy meters. Any normative calculation of the operating load/estimation
of consumption can result in skewed consumption levels.
·
The Agency has worked out the consumption of sample meters
by applying a check that in case the consumption recorded by a meter is more
than the theoretical consumption (calculated using formula i.e. connected load
multiplied by hours of supply), then the theoretical consumption is to be
considered for the purpose of calculating the load factor and vice versa. The
Board has observed that once a meter is identified to be giving incorrect reading
then the same meter should ideally be excluded from the study, which has not
been done by the agency. The Board understands that in case a meter is showing
excess consumption, the same may be a pointer towards theft, poor condition of
equipment at the site, supply hours in excess of the average considered in the
study etc, which cannot be ignored in this manner.
·
The Agency, in the final report has, considered a motor
efficiency of 80% across all the divisions. The Board understands that there
are around 55-60% submersible motors and 40-45% monoblock motors installed by
the farmers in the State. Moreover, the Board understands that even brand new
motors have an efficiency of less than 50% for submersible motors and around
60-65% in case of monoblock motors. Consideration of such higher motor
efficiency by the Agency has resulted in lower AP sales estimation.
The Commission observes that the points urged by the Board regarding
manner in which agriculture consumption was computed for 3 quarters of the year
2008-09 are substantially the same as made at the time of considering the ARR
for 2009-10. All these matters had been carefully considered by the Commission
and there is, at the stage of true up, no scope to reopen the principles and
norms on which these matters were earlier decided.
The
Commission thus approves AP consumption of 8395 MUs by reducing the AP
consumption of 9349 MUs by 10.20% based on the report of the Agency, for the
year 2008-09.
2.3.
Transmission and Distribution Losses (T&D Losses)
The
Commission, in its Tariff Order of 2008-09, fixed the target of T&D losses
at 19.50%. During the determination of ARR of 2009-10, the Board stated that
T&D losses in 2008-09 would be 21.00% but the Commission retained T&D
losses at 19.50% in the review. The Board has now intimated that actual losses in
2008-09 are 19.92% at the level of AP consumption computed by it. The
Commission, however, sees no reason to accept T&D losses in excess of the
target earlier fixed.
The
Commission, therefore, retains the T&D losses at 19.50% as approved in the
Tariff Order for the year 2008-09.
2.4.
PSEB’S Own Generation
2.4.1.
Thermal Generation: The station-wise generation projected by the
Board during the determination of ARR by the Commission for the year 2008-09,
generation approved by the Commission in the Tariff Order, revised estimates
furnished by the Board during determination of ARR of 2009-10, generation
approved by the Commission in the review, actuals now supplied by the Board
with the ARR for 2010-11 and generation finally approved by the Commission is
given in Table 2.2.
Table 2.2: Thermal Generation – 2008-09
(MUs)
|
Sr. No. |
Station |
Projected by PSEB during determination of ARR 08-09 |
Approved by the Commission T.O.
08-09 |
Revised Estimates by PSEB in ARR 09-10 |
Approved by the Commission T.O.
09-10 |
Actuals by PSEB submitted in ARR
10-11 |
Now approved by the Commission |
||||||
|
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
|
1A |
GNDTP Unit I&II |
2411 |
2146 |
1542 |
1402 |
2748 |
2428 |
1562 |
1402 |
2846 |
2517 |
15625 |
1390 |
|
1B |
GNDTP Unit III&IV |
1004 |
894 |
1284 |
1143 |
12845 |
1143 |
||||||
|
2 |
GGSTP |
9469 |
8655 |
9886 |
9046 |
9224 |
8434 |
9611 |
8794 |
9611 |
8809 |
9611 |
8794 |
|
3A |
GHTP Stage-1 |
3265 |
2971 |
61271 |
5576 |
3391 |
3078 |
3532 |
3214 |
56103 |
5126 |
5610 |
5105 |
|
3B |
GHTP Stage-2 |
2800 |
2534 |
1160 |
1056 |
20782 |
1891 |
||||||
|
4 |
Total |
17945 |
16306 |
18559 |
16918 |
16523 |
14996 |
18067 |
16444 |
180674 |
16452 |
18067 |
16432 |
1 Comprises
of 3457 MUs by Stage 1 and 2670 MUs by Stage II.
2 Includes 1168 MUs
generated during trial runs.
3 Includes 1168 MUs
generated during trial runs of Unit III and Unit IV.
4
Against 18066 MUs gross generation submitted by the Board.
5 1562 MUs generated by GNDTP Unit 1&2 and
1284 MUs by GNDTP Unit 3&4 (on the basis
of data supplied during processing of ARR
for the year 2009-10).
Plant-wise generation is not
available in the annual statement of accounts and as such the data supplied
along with the ARR of 2010-11 and the generation figures validated by the
Commission have been taken into account.
Accordingly, the Commission approves gross thermal
generation for the year 2008-09 at 18067 MUs.
Auxiliary Consumption
The auxiliary consumption
projected by the Board during determination of ARR by the Commission for the
year 2008-09, auxiliary consumption approved by the Commission in the Tariff
Order, revised estimates furnished during determination of ARR of 2009-10,
auxiliary consumption approved by the Commission in the review, actuals now
supplied by the Board with the ARR for 2010-11 and auxiliary consumption
approved by the Commission is given in Table 2.3 below.
Table 2.3:
Auxiliary Consumption – 2008-09
|
Sr. No. |
Station |
Approved by the Commission in T.O.
08-09 |
Revised Estimates by PSEB in
ARR 09-10 |
Approved by the Commission in T.O.
09-10 |
Actuals by PSEB submitted in ARR 10-11 |
Now approved by the Commission |
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
1A |
GNDTP
Unit I & II |
11.00% |
9.10% |
11.66% |
10.22% |
11.57% |
11.00% |
|
1B |
GNDTP
Unit III & IV |
11.00% |
11.00% |
||||
|
2 |
GGSTP |
8.60% |
8.50% |
8.56% |
8.50% |
8.34% |
8.50% |
|
3A |
GHTP Stage I |
9.00% |
9.00% |
9.21% |
9.00% |
8.71% |
9.00% |
|
3B |
GHTP Stage II |
9.50% |
9.00% |
9.00% |
8.35% |
9.00% |
It is observed that actual auxiliary consumption now
reported by the Board is marginally higher for GNDTP and lower for GGSTP and
GHTP than the approved levels. The
Commission observes that the auxiliary consumption of GGSTP and GHTP Thermal
Plants has been approved on normative basis, whereas for GNDTP, the Commission
has been adopting the operational norms of Tanda Thermal Plant. In its Tariff
Order for the Year 2009-10, the Commission had fixed the auxiliary consumption
of GNDTP Bhatinda based on an order of CERC approving the revised operating
norms of the Tanda Thermal Plant after its R&M works.
The Commission had revised
auxiliary consumption as 10.22% for GNDTP Units 1&2 for the year 2008-09 in
the Tariff Order for 2009-10 after reducing 1.78% (0.95+0.83%) from the norm of
12% fixed by CERC for the Tanda Thermal Station. On re-examination, the
Commission observes that it would be inappropriate to effect a deduction of
0.95% as this represents the losses in the generator transformer, unit
auxiliary transformer, station transformer and excitation power which are
theoretically occurring both in Bathinda and Tanda station. Thus, a deduction
of 0.83% alone would be justified as that is the energy consumption on account
of the three stage water cooling system existing at Tanda but not in GNDTP. On
that basis, auxiliary consumption for GNDTP Unit 1&2 would work out to
11.17 (10.22+0.95). However, the Commission finds no justification in allowing
auxiliary consumption after R&M works of Units 1&2 in excess of the pre
R&M value. Assuming that the auxiliary consumption in the case of Unit
1&2 is less than 11% and that for Unit 3&4 in excess thereof, the
Commission compositely determines auxiliary consumption for all 4 units of
GNDTP at 11%.
In view of the above, the
Commission approves the auxiliary consumption of 11.00%, 8.50% and 9.00% for
GNDTP, GGSTP and GHTP respectively.
The net thermal generation on
this basis works out to 16432 MUs as shown in column 14 of Table 2.2.
The Commission
further observes that the Board has not been able to achieve gross and net thermal
generation originally approved.
The Board has
under-achieved the target by 492 MUs (18559-18067) gross and 486 MUs (16918-16432)
net as compared to generation originally approved, as shown in Table 2.2. The
Commission takes into account the loss in thermal generation of 492 MUs gross
(486 MUs net) and disapproves consequential additional power purchase
requirement to that extent. This is discussed further in para 2.9.
2.4.2.
Hydel Generation: The station-wise generation submitted by the
Board to the Commission during determination of ARR and Tariff for the year
2008-09, generation approved by the Commission in its Tariff Order, revised
estimates furnished by the Board during determination of ARR of 2009-10,
generation approved by the Commission in review and actuals now furnished by
the Board and those accepted by the Commission are given in Table 2.4.
Table 2.4: Hydel Generation –
2008-09
(MUs)
|
Sr. No. |
Hydel Station |
Projected by PSEB during determination of ARR 08-09 |
Approved by Commission in TO 08-09 |
RE by PSEB in ARR 09-10 |
Approved by Commission in TO 09-10 |
Actuals by PSEB in ARR 10-11 |
Now approved by Commission |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
1 |
Shanan |
507 |
507 |
507 |
532 |
532 |
532 |
|
2a |
UBDC Phase 1 |
432 |
432 |
311 |
140 |
339 |
339 |
|
2b |
UBDC Phase 2 |
199 |
|||||
|
3 |
RSD |
1586 |
1612 |
1539 |
1474 |
1474 |
1474 |
|
4 |
MHP |
1074 |
1074 |
797 |
1122 |
1132 |
1132 |
|
5 |
ASHP |
596 |
587 |
726 |
751 |
689 |
6892 |
|
6 |
Micro
Hydel |
6 |
6 |
8 |
4 |
10 |
10 |
|
7 |
Total own hydel |
||||||
|
a |
Gross |
4201 |
4218 |
3888 |
4222 |
4175 |
4175 |
|
b |
Net Own
Hydel |
4027 |
4056 |
3841 |
4005 |
41311 |
40203 |
|
8 |
PSEB
Share from BBMB |
|
|
|
|
|
|
|
a |
Net Share |
4187 |
4187 |
4256 |
4473 |
4307 |
4307 |
|
b |
Add
Common pool share |
303 |
303 |
303 |
303 |
302 |
302 |
|
c |
Less
External losses |
165 |
163 |
168 |
166 |
|
|
|
d |
Net Share
from BBMB |
4325 |
4327 |
4391 |
4610 |
4610 |
4609 |
|
9 |
Total
Net Hydel (Own + BBMB) |
8352 |
8383 |
8232 |
8615 |
8741 |
8629 |
1.
Net of auxiliary consumption (7.18 MUs) and transformation
loss (36.83 MUs).
2.
Net of diversion of 62 MUs to BBMB on account of extra power
generation at ASHP owing to diversion of water from NHC to AHC.
3.
Own generation is net of
·
HP share (free) in RSD @ 4.6% (68 MUs).
·
Royalty to HP in Shanan (53 MUs).
·
Transformation losses @ 0.5% (21 MUs).
·
Auxiliary consumption @ 0.5% for RSD generation of 1474 MUs
and UBDC Stage-1 generation of 140 MUs (having static exciters) and @ 0.2% for
others (13 MUs).
The actual gross
hydel generation from the Board’s own hydel stations for the year 2008-09 is
4175 MUs and the Commission accepts the same. While calculating the net
generation, the Board has not deducted the free HP share in RSD and royalty in
Shanan. In line with the principle being followed in such sales, the Commission
has worked out net hydel generation by deducting HP share in RSD and royalty in
Shanan along with the auxiliary consumption and transformation losses. Net
hydel generation for the year 2008-09 thus works out to 4020 MUs. The actual
net availability from BBMB is 4609 MUs which the Commission accepts.
The Commission, therefore, approves net
hydel generation for the year 2008-09 at 4020 MUs from the Board’s own
generation and 4609 MUs as net share from BBMB as shown in table 2.4.
2.5.
Power Purchase
The Commission in its Tariff Order of 2008-09 approved net power purchase
of 14669 MUs. During determination of ARR of 2009-10, the Board furnished
revised estimates for net power purchase of 15575 MUs during presentation on 10.06.09
but in review, the Commission approved 12680 MUs only. The Board has now submitted
net purchases during 2008-09 of 14851 MUs (net) as per audited accounts. This matter is further discussed in para 2.8.
2.6.
Energy Balance
2.6.1. The details of energy requirement and availability for 2008-09 approved
by the Commission in review in the Tariff Order of 2009-10 and the actuals now
furnished by the Board are given in Table 2.5. The energy balance, including
T&D losses along with sales and availability now approved by the Commission
is depicted in column 6 of Table 2.5.
Table 2.5: Energy Balance –
2008-09
(MUs)
|
Sr. No. |
Particulars |
Approved
by the Commission in T.O. 09-10 |
Actual
by PSEB in ARR 10-11 |
Now
approved by the Commission |
Sales
& actual T&D losses as per approved energy available |
|
1 |
2 |
3 |
4 |
5 |
6 |
|
A) Energy Requirement |
|||||
|
1 |
Metered Sales |
19,892 |
20,461 |
20,461 |
20,461 |
|
2 |
Sales to Agriculture Pumpsets |
8,374 |
9,349 |
8,395 |
8,395 |
|
3 |
Total Sales within the State |
28,266 |
29,810 |
28,856 |
28,856 |
|
4 |
Loss percentage |
19.50% |
19.92% |
19.50% |
22.21% |
|
5 |
T&D losses |
6,847 |
7,416 |
6,990 |
8,239 |
|
6 |
Sales to Common pool consumers |
303 |
302 |
302 |
302 |
|
7 |
Outside State Sales |
2,323 |
2,515 |
2,515 |
2,515 |
|
8 |
Total requirement |
37,739 |
40,043 |
38,663 |
39,912 |
|
B) Energy Available |
|||||
|
9 |
Own generation (Ex-bus) |
||||
|
10 |
Thermal |
16,444 |
16,451 |
16,432 |
16,432 |
|
11 |
Hydro(Including share from BBMB and common pool
consumers |
8,615 |
8,741 |
8,629 |
8,629 |
|
12 |
Purchase net |
12,680 |
14,851 |
14,851 |
14,851 |
|
13 |
Total Available |
37,739 |
40,043 |
39,912 |
39,912 |
2.6.2.
The total
energy requirement now approved by the Commission considering T&D losses at
19.50% is 38663 MUs (net) as against 40043 MUs projected by the Board, whereas
total energy availability now approved is 39912 MUs (net). The difference of 1249
MUs (net) between energy requirement and energy availability is owing to the
underachievement of T&D loss target as discussed in para 2.3 and depicted
in columns 5 & 6 of Table 2.5. Higher T&D loss over and above the level
approved by the Commission has resulted in increased net power purchase to the
extent of 1249 MUs (8239 - 6990) MUs. The matter is further discussed in para 2.9.
The Commission
approves the total energy requirement for the year 2008-09 at 38663 MUs (net)
after retaining T&D losses at 19.50%.
2.7.
Fuel Cost
2.7.1. In its Tariff Order of 2008-09, the Commission approved the fuel cost as
Rs. 2742.62 crore for a gross thermal generation of 18559
MUs. In review, this cost was revised to Rs. 2978.85 crore
for the then approved gross generation of 18067 MUs. Details of approved fuel cost
in the Tariff Order of 2008-09 and review are given in Table 2.6.
Table 2.6: Fuel Cost – 2008-09
|
Sr.
No. |
Station |
As per T.O. 08-09 |
As per Review in T.O. 09-10 |
||
|
Gross Generation (MUs) |
Fuel Cost (Rs.crore) |
Gross Generation (MUs) |
Fuel Cost (Rs.crore) |
||
|
1 |
2 |
3 |
4 |
5 |
6 |
|
1 |
GNDTP Unit I&II |
1542 |
214.17 |
1562 |
264.81 |
|
2 |
GNDTP Unit III&IV |
1004 |
172.10 |
1284 |
233.25 |
|
3 |
GGSTP |
9886 |
1480.84 |
9611 |
1581.42 |
|
4 |
GHTP |
6127 |
875.51 |
5610 |
899.37 |
|
5 |
Total |
18559 |
2742.62 |
18067 |
2978.85 |
2.7.2.
The Board
in its ARR of 2010-11 has indicated actual fuel cost for 2008-09 for a gross
generation of 18067 MUs as Rs.3154.35 crore (including fuel cost for infirm
power) whereas in the audited accounts of 2008-09, the total generation
expenses are Rs. 3175.23 (3171.49+ 3.74) crore net of capitalisation. These
comprise of Rs.3064.65 crore for coal and oil consumption, Rs.36.27 crore for
other fuel related costs including octroi, contract handling charges, siding
charges etc., Rs.49.39 crore for fuel related losses including transit losses
and Rs.21.17 crore for other operating expenses such as cost of water,
lubricants, consumable stores and station supplies. Out of these, Rs.21.17 crore
booked towards other operating expenses do not form part of the fuel cost and
are being considered under repair and maintenance expenses in para 2.11. Thus,
the net fuel cost as per audited accounts is taken as Rs. 3154.06 (3175.23 – 21.17) crore.
2.7.3.
The actual
fuel cost intimated by the Board for 2008-09 in its ARR of 2010-11 for a gross
thermal generation of 18067 MUs is based on calorific value and price of coal /
oil as given in Table 2.7A. The fuel cost on account of generation of GHTP
Stage II during its trial run has been proposed as actually incurred by the
Board. The Board has submitted that the units cannot be expected to run at the
normative levels during trial runs and according to the CERC Regulations
(2004-09) a grace period of 180 days is to be provided for stabilization of the
unit. The Board has further stated that in case of PSEB, the period under
consideration was the trial operations prior to declaration of
The Commission observes that
effective from 1st April 2006, CERC in its notification
no.L-7/25(5)/2003-CERC dated 27.09.07 has done away with the provision for
relaxation in operating parameters for generating stations during the stabilization period. As such the
Commission does not find any merit in the submission of the Board that the
operating parameters of GHTP stage II unit should be relaxed and be considered on
an actual basis.
Table 2.7A: Calorific Value and Price of Coal and Oil
as submitted
by the Board for 2008-09
|
Sr. No. |
Station |
As considered by PSEB |
||||
|
Calorific value of coal (kCal/Kg) |
Calorific Value of Oil (K.cal/Ltr) |
Price of Oil (Rs/KL) |
Price of coal including transit
loss (Rs./MT) |
Transit loss (%) |
||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
1 |
GNDTP |
4239 |
10000 |
28297 |
2449 |
1.41% |
|
2 |
GGSTP |
4019 |
10000 |
30712 |
2518 |
2.20% |
|
3 |
GHTP |
4077 |
9400 |
28347 |
2531 |
1.69% |
2.7.4.
Fuel cost being a major item of expense, the
Commission thought it prudent to get the same validated. The finally accepted values are indicated in
Table 2.7B.
Table 2.7B: Calorific Value and Price of Coal and Oil as approved
by the Commission for 2008-09
|
|
As
accepted by the Commission |
|||||
|
Station |
Gross
Calorific value of coal (kCal/Kg) |
Calorific
Value of Oil (K.cal/Ltr) |
Price of
Oil (Rs/KL) |
Price of
coal including transit loss (Rs./MT) |
Transit
loss (%) |
Price of
coal excluding transit loss (Rs./MT) (computed) |
|
|
1 |
2 |
3 |
4 |
5 |
6 |
|
GNDTP |
4239 |
10181 |
28297 |
2449 |
1.41% |
2414.5 |
|
GGSTP |
4019 |
10000 |
30712 |
2518 |
2.20% |
2462.6 |
|
GHTP |
4077 |
9400 |
28347 |
2531 |
1.69% |
2488.2 |
2.7.5.
With
regard to Station Heat Rate (SHR) of GGSTP, the Board has pointed out that the
average aging for the turbines of 6 units as on 30.9.2009 was 14.89% and that
in these circumstances, the efficiencies of the boiler and other plant
assemblies are bound to decline from their designed values. Accordingly, the
proposed SHR of 2700 Kcal/Kwh would be a more realistic assessment. In respect
of GNDTP, the Board has brought out that certain elements of renovation and
modernization of Unit 1 and 2 had not been undertaken in 2008-09 which had led
to higher fuel costs for these units. However, with the completion of the said
works, the SHR for these units has since improved. The Commission notes that
similar submissions regarding the performance parameters of the Board’s Thermal
Plants were made at the time when the ARR for 2009-10 came up for consideration
and that the Commission had, after taking all relevant factors into account,
decided these issues. The Commission is of the view that the principles and
norms on which these matters were decided can not be reopened during true up
for the year 2008-09 and accordingly, performance parameters as fixed in the Tariff
Order of the previous year are proposed to be retained.
2.7.6.
In the ARR
for the year 2009-10, the Board had not reported any consumption of imported
coal for the year 2008-09. This was also verified at the power stations at the
time of validation when it was noted that a substantial quantity of coal from
the Board’s captive coal mine (PANAM) was used during 2008-09 which is priced
F.O.R. destination. The price of coal and corresponding calorific values given
in the ARR of the Board (Table 2.7A) and those validated by the Commission
(Table 2.7B) are weighted average values of coal, including PANAM coal.
2.7.7.
The
Commission has now approved revised gross thermal generation of 18067 MUs (2846
MUs for GNDTP, 9611 MUs for GGSTP and 5610 MUs for GHTP) as discussed in para
2.4.1. The fuel cost for different thermal stations corresponding to generation
now approved has been worked out, based on the parameters adopted by the
Commission in its Tariff Order of 2008-09. Price and calorific value of coal
and oil has been adopted as validated and accepted by the Commission.
2.7.8. No transit loss has been allowed for PANAM
coal while arriving at fuel cost as prices according to the contract are on
F.O.R. destination basis. In case of coal other than PANAM coal, transit loss
of 2% has been allowed by the Commission.
2.7.9.
On the
above basis, fuel cost for the year 2008-09 for different thermal stations
corresponding to actual generation is given in Table 2.8.
Table 2.8: Approved Fuel
Cost 2008-09
|
Sr.
No. |
Item |
Derivation |
Unit |
Approved
for 2008-09 |
||||
|
GNDTP
(I&II) |
GNDTP
(III&IV) |
GGSTP |
GHTP |
Total |
||||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
8 |
|
1 |
Generation |
A |
MU |
1562 |
1284 |
9611 |
5610 |
18067 |
|
2 |
Heat Rate |
B |
k.cal/kWh
Generated |
2850 |
3000 |
2500 |
2500 |
|
|
3 |
Specific oil consumption |
C |
Milli
litre/kwh |
2.00 |
3.50 |
2.00 |
2.00 |
|
|
4 |
Calorific value of oil |
D |
k.cal/litre |
10181 |
10181 |
10000 |
9400 |
|
|
5 |
Calorific value of
coal |
E |
k.cal/kg |
4239 |
4239 |
4019 |
4077 |
|
|
6 |
Overall heat |
F
= (A x B) |
G.cal |
4451700 |
3852000 |
24026675 |
14024800 |
|
|
7 |
Heat from oil |
G
= (A x C x D) / 1000 |
G.cal |
31805 |
45753 |
192213 |
105466 |
|
|
8 |
Heat from coal |
H
= (F-G) |
G.cal |
4419895 |
3806247 |
23834462 |
13919334 |
|
|
9 |
Oil Consumption |
I=(Gx1000)/D |
KL |
3124.00 |
4494.00 |
19221.34 |
11219.84 |
|
|
10 |
Transit loss of coal |
J |
% |
2.00 |
2.00 |
2.00 |
2.00 |
|
|
11 |
Total Coal Consumption excluding transit loss |
K=(H*1000)/E |
MT |
1042792 |
898013 |
5930180 |
3414221 |
|
|
12 |
Quantity of PANAM coal |
L |
MT |
601019 |
494051 |
2452406 |
2635682 |
|
|
13 |
Quantity of coal other than PANAM coal excluding transit
loss. |
M=K-L |
MT |
441773 |
403962 |
3477774 |
778539 |
|
|
14 |
Quantity of coal
other than PANAM coal including transit loss |
N=M/(1-J) |
MT |
450789 |
412206 |
3548749 |
794427 |
|
|
15 |
Total Quantity of coal required |
O=L+N |
MT |
1051808 |
906257 |
6001155 |
3430109 |
|
|
16 |
Price of Coal without transit loss |
P |
Rs.
/ T |
2414.50 |
2414.50 |
2462.60 |
2488.20 |
|
|
17 |
Price of Oil |
Q |
Rs./KL |
28297 |
28297 |
30712 |
28347 |
|
|
20 |
Total cost of oil |
R=Q
x I / 107 |
Rs.crore |
8.84 |
12.72 |
59.03 |
31.80 |
|
|
21 |
Cost of coal |
S=O
x P/107 |
Rs.crore |
253.96 |
218.82 |
1477.84 |
853.48 |
|
|
22 |
Total Fuel cost |
T=
R+S |
Rs.crore |
262.80 |
231.54 |
1536.87 |
885.28 |
2916.49 |
* Quantity of Panam coal where not given for different units of a plant
has been considered on pro-rata basis of generation.
The Commission,
thus, approves the fuel cost at Rs. 2916.49 crore
for gross generation of 18067 MUs for the year 2008-09.
2.8.
Power Purchase Cost
2.8.1.
The Commission, in its Tariff
Order for the year 2008-09, approved a cost of Rs. 4186.33 crore for purchase of 15381 MUs (gross). In review, the
Commission revised it to Rs. 4414.59 crore for the
purchase of 13307 MUs (gross), inclusive of 4.71% external losses.
2.8.2.
The actual
gross power purchase for the year 2008-09 now reported by the Board is 15587.42
MUs (gross) including unscheduled interchange (UI) of 483.07 MUs. The net power
purchase after accounting for external losses of 4.73% is 14851 MUs. The actual cost of power purchase for 2008-09
as per ARR 2010-11 is Rs. 5184.05
crore. The power purchase cost as per audited accounts for 2008-09 is also Rs.
5184.05 crore.
The Commission
observes that as per previous practice, requirement of power purchase at the
time of review is taken based only on the energy balance as determined in the
Tariff Order for the relevant year and approved accordingly. However, at the time of true up, the actual
quantum of power purchased has been allowed since it has been obtained by the
Board and supplied to the consumers of different categories.
Going by the same practice, the Commission thus
approves a cost of Rs.5184.05 crore for purchase of 14851 MUs net.
2.9.
Expenses Disapproved by the
Commission
2.9.1.
Expenses disapproved on account of higher T&D
losses: As discussed in para 2.3, the Board has under
achieved the T&D loss target approved by the Commission. As per Tariff
Regulations, the entire loss on account of failure to achieve T&D targets
set by the Commission is to be borne by the licensee. As brought out in para 2.6, T&D loss
level higher than that approved by the Commission has resulted in increased
power purchase to the extent of 1249 MUs (net), the
pro-rata cost of which based on power purchase cost approved in para 2.8 works
out to Rs.435.99 (5184.05 x 1249 / 14851)
crore.
The Commission, therefore, disapproves expenses to the
extent of Rs. 435.99 crore on accounts of higher T&D losses.
The effect of this is reflected at Sr. No.
14(i) of Table 2.14.
2.9.2.
Expenses
disapproved for lower thermal generation: The Commission
has noted that there is lower thermal generation to the extent of 492 MUs gross
(486 MUs net) and consequent increase in power purchase as discussed in para
2.4.1. The station wise decrease in gross generation compared to the generation
approved in the Tariff Order of 2009-10 is 275 (9886-9611) MUs for GGSTP and 517
(6127-5610) MUs for GHTP. For GNDTP there is an increase in generation of 300
(2546-2846) MUs.
The net saving in fuel cost
for different stations corresponding to this variation in generation based on
cost now approved works out to Rs.73.36 crore as given in Table 2.9.
Table 2.9: Decrease in Fuel Cost due to lower Generation for 2008-09
|
Sr.
No. |
Station |
Now
Approved by the Commission |
Increase
/ Decrease in fuel cost due to more/less generation |
||
|
Generation
(MUs) |
Fuel
Cost (Rs. crore) |
Increase
/Decrease in Generation (+/-) (MUs) |
Increase
/Decrease
in Fuel Cost (+/-) (Rs.
crore) |
||
|
1 |
GNDTP |
2846 |
495 |
(+)
300 |
(+)
52.18 |
|
2 |
GGSTP |
9611 |
1537 |
(-)
275 |
(-)
43.98 |
|
3 |
GHTP |
5610 |
885 |
(-)
517 |
(-)
81.56 |
|
4 |
Total |
18067 |
2917 |
(-)
492 |
(-)
73.36 |
The increase in power
purchase on account of lower generation is 486 MUs net. The cost of 486 MUs
(net) based on power purchase cost approved as per para 2.8 works out to Rs.169.65
crore ((5184.05/14851)*486). Accordingly, the net increase in power purchase
cost is Rs.96.29 (169.65 - 73.36) crore.
The Commission therefore determines an amount of
Rs.96.29 crore as disincentive on account of lower thermal generation.
The effect of this is
reflected at Sr. No. 14 (ii) of Table 2.14.
2.10 Employee Cost
2.10.1 The Commission, in its Tariff Order for the
year 2008-09, approved employee cost of Rs.1773.55 crore. In the review, in
accordance with PSERC Tariff Regulations, the Commission revised the employee
cost to Rs.1768.19 crore by applying the wholesale price index (WPI) of 8.41%
to the approved employee cost of Rs.1631.02 crore for 2007-08.
2.10.2 The employee cost, as per
audited accounts of the Board for 2008-09, is Rs.2319.86 crore (gross). The net
cost after reducing capitalization amount of Rs.117.82 crore is Rs.2202.04
crore. However, as per audit notes, the employee cost has been understated by
Rs.6.58 crore and taking that into account, the employee cost of the Board
comes to Rs.2208.62 crore.
2.10.3 The Commission also finds no justification in
allowing additional employee cost on account of assets added during the year as
laid down in Regulation 28 (6) of the PSERC Tariff Regulations. It is relevant
to mention here that as per the Appellate Tribunal’s Judgement dated May 26,
2006, employee cost of the Board will remain capped until performance
parameters of the Board improve.
2.10.4 The Commission is, thus, only to adjust
employee cost for 2008-09 in accordance with the annual variations in the rate
of WPI as on 1st April of the year. In line with the principle
adopted in the past, average increase in WPI of 8.41% in the year 2008-09 is
considered to allow the employee cost. The Commission, therefore, retains the
employee cost of Rs.1768.19 crore by allowing an increase of 8.41% over the
approved employee cost of Rs.1631.02 crore for the year 2007-08.
The
Commission, thus, approves the employee cost of Rs.1768.19 crore for the year
2008-09.
2.11 Repairs and Maintenance (R&M) Expenses
2.11.1 The
Commission approved R&M expenses of Rs. 323.19 crore in its Tariff Order of
2008-09. In the review, the R&M expenses were revised to Rs. 339.56 crore,
allowing
·
an increase of 8.41% in WPI over the R&M expenses
approved for the year 2007-08 and
·
R&M expenses for the additional assets of Rs.1914.67
crore approved as added during 2008-09, assuming these remained in use for six
months in the year.
2.11.2 R&M
expenses as per the audited accounts of the Board for the year 2008-09 are Rs.
341.78 crore. This figure is inclusive of operating expenses of Rs. 21.17 crore
as discussed in Para 2.7.2. Reducing capitalized expenses of Rs.3.24 crore, the
actual R&M cost for the year 2008-09, works out to Rs. 338.54 crore.
However, as per audit notes, these expenses have been understated to the extent
of Rs.3.16 crore. Thus, the actual R&M expenses for the year 2008-09 work
out to Rs.341.70 crore.
2.11.3 The PSERC
Tariff Regulations provide for allowing an increase in O&M expenses (which
include R&M expenses) in proportion to the increase in WPI. The base
R&M expenses of Rs. 296.00 (286.91+9.09) crore are being considered to
allow these expenses for the year 2008-09 which include approved R&M expenses of Rs.286.91 crore for
2007-08 and an amount of Rs.9.09 crore being R & M expenses allowed for six
months on fixed assets added during the year.
Thus, after allowing an average WPI increase of 8.41% for the year over
the base R&M expenses of Rs. 296 crore, the allowable R&M expenses work
out to Rs.320.89 crore for assets of Rs. 16424.12 crore as on April 1, 2008, as
determined by the Commission after taking into account audit notes.
2.11.4 According to Regulation 28 (6) of the PSERC
Tariff Regulations, R&M expenses for fixed assets added during the year are
to be considered on pro-rata basis from the date of commissioning. As per
audited accounts for 2008-09, fixed assets added during the year are valued at
Rs. 2011.03 crore. However, as per audit notes, these fixed assets are
understated by Rs. 54.97 crore. Taking the audit notes into account, the value
of the assets added during the year works out to Rs. 2066 crore. The dates of
commissioning of these assets are neither available in the accounts nor in the ARR
of the Board. Therefore, R&M expenses for the assets added are being
considered assuming that these assets remained in service of the Board for six
months on an average during 2008-09. The average percentage rate of R&M
expenses of Rs.320.89 crore for assets of Rs.16424.12 crore works out to 1.95%
(320.89/16424.12*100). By applying the average rate of 1.95%, the allowable
R&M expenses for the additional fixed assets added during the year work out
to Rs.20.14 crore. Thus, allowable R&M expenses for the year 2008-09 work
out to Rs.341.03 (320.89 + 20.14) crore.
The Commission,
accordingly, allows R&M expenses of Rs. 341.03 crore for the year
2008-09.
2.12 Administration and General (A & G) Expenses
2.12.1 In the
Tariff Order of 2008-09, the Commission approved A&G expenses of Rs.79.29
crore. In the review of 2008-09, these expenses were approved at Rs.71.93 crore
being net of capitalization of Rs.23.43 crore as claimed by the Board.
2.12.2 As per the
audited accounts of the Board, the A&G expenses for the year 2008-09 are
Rs.90.73 crore (gross). The net expenses for the year work out to Rs.70.96
crore after reducing capitalized expenses of Rs.19.77 crore.
2.12.3
Regulation 28 of the PSERC Tariff Regulations provides for allowing annual
increase in the approved O&M expenses (which include A&G expenses)
based on average increase in WPI over the year. The base A&G expenses for
2008-09 work out to Rs.68.07 (66.00 + 2.07) crore which include approved
A&G expenses of Rs.66.00 crore for 2007-08 and an amount of Rs.2.07 crore
being A&G expenses allowed for six months on fixed assets added during the
year. Accordingly, after allowing average WPI increase of 8.41% over the base
A&G expenses of Rs.68.07 crore, expenses allowable for 2008-09 work out to
Rs. 73.79 crore for assets valued at Rs.16424.12 crore as on 1st
April, 2008. The average percentage rate of allowable A&G expenses works
out to 0.45% i.e. (73.79/16424.12*100).
2.12.4 The Commission adopts the same principle for
allowing A&G expenses for fixed assets added during the year as has been
applied to R&M expenses.
Accordingly, the average rate of 0.45% is applied to the additional
assets of Rs. 2066 crore added during 2008-09 for arriving at allowable A&G
expenses of Rs.4.65 crore. Thus, allowable A&G expenses for the year
work out to Rs. 78.44 (73.79 + 4.65) crore for the year 2008-09 against which
the Board has claimed expenses of Rs.70.96 crore on actual basis.
The Commission, therefore, approves A&G expenses of
Rs.70.96 crore as claimed by the Board for the year 2008-09.
2.13 Depreciation
Charges
2.13.1 The Commission
approved depreciation charges of Rs.783.34 crore for the year 2008-09 in the
Tariff Order of 2008-09. In the review, these charges were revised to Rs.721.50
crore based on the revised estimates of the Board.
2.13.2 In its ARR for 2010-11, the
Board has claimed depreciation charges of Rs.693.73 crore which are net of
capitalized depreciation of Rs.2.41 crore for the year 2008-09. The Commission
has noted that the depreciation charges as per audited accounts are also at
Rs.693.73 crore (net) as claimed by the Board. However, as per audit notes on
the Annual Accounts for 2008-09, these expenses have been understated by an
amount of Rs.8.62 crore and taking this into account, depreciation charges for
the year work out to Rs.702.35 crore for 2008-09.
The Commission,
therefore, approves depreciation charges of Rs.702.35
crore for the year 2008-09.
2.14 Interest
and Finance Charges
2.14.1 The
Commission approved net Interest
and Finance charges
of Rs.767.48 crore in its Tariff Order for the year 2008-09 after
disallowing interest cost of Rs.100 crore of the Board and Rs.209.32 crore of
interest on GoP loans on account of diversion of capital funds for revenue
purposes. In the review of 2008-09, the Interest & Finance charges were
revised to Rs. 537.66 crore.
2.14.2 The amount of Interest and Finance charges
(gross) as per audited accounts for 2008-09 is Rs.1446.12 crore. After reducing
capitalized interest charges of Rs.251.53 crore, the net interest charges come
to Rs.1194.59 crore. The Interest and Finance charges claimed by the Board and
as allowed by the Commission are detailed in Table 2.10 below.
Table 2.10: Interest
and Finance charges
(Rs. crore)
|
Sr. No. |
Description |
Interest as depicted in accounts |
Interest payable on GoP loans but
not accounted for in accounts for 2008-09 |
Amount disallowed by Commission |
Amount allowed by Commission |
|
1. |
Interest
on institutional loans taken by the Board |
602.48 |
- |
6.78 |
595.70 |
|
2. |
Interest
on loans taken for Rajpura Thermal Plant (RTP) being privately developed on
BOO basis |
16.25 |
- |
16.25 |
0.00 |
|
3. |
Interest
payable on GoP loans |
0 |
219.19 |
- |
219.19 |
|
4. |
Interest
for short-term loans of Rs.1362 crs. |
151.05 |
- |
- |
151.05 |
|
5. |
Interest on GPF |
112.65 |
- |
- |
112.65 |
|
6. |
Lease rentals |
0.04 |
- |
- |
0.04 |
|
7. |
i)
Interest to consumers on security deposits ii)
Short provision for interest on security deposits as per audit notes not
accounted for by the Board in accounts. |
70.48 70.61 |
- |
- |
141.09 |
|
8. |
Discount
to consumers for advance payment of bills |
52.45 |
- |
52.45 |
0 |
|
9. |
Sub Total |
1076.01 |
219.19 |
75.48 |
1219.72 |
|
10. |
Interest
on Working Capital Loans (569.54-151.05) |
418.49 |
- |
313.54 |
104.95 |
|
11. |
Finance
charges for capital loans |
22.23 |
- |
17.04 |
5.19 |
|
12. |
Total (9+10+11) |
1516.73 |
219.19 |
406.06 |
1329.86 |
|
13. |
Less capitalization |
251.53 |
- |
- |
251.53 |
|
14. |
Net
Interest & Finance charges (12-13) |
1265.20 |
219.19 |
406.06 |
1078.33 |
|
15. |
Less
interest disallowed on account of diversion of capital funds |
|
|
|
262.34 |
|
16. |
Interest allowed (14-15) |
|
|
|
815.99 |
The interest and
finance charges allowable to the Board are discussed in the ensuing paragraphs.
2.14.3 The
Commission, in its Tariff Order, approved an Investment Plan of Rs.2000 crore
for the year 2008-09. In the review, the Commission revised the Investment Plan
to Rs.1475.28 crore after deducting investment of Rs.442.62 crore and Rs.6.61
crore on Rajpura and Gidderbaha Thermal Plants which are being/proposed to be developed
on BOO basis. The net requirement of loans of Rs.1117.18 crore was approved
after adjustment of consumers’ contribution of Rs.215.58 crore (considered at
previous year’s level) and incentive grant of Rs.142.52 crore received under
(Rs. crore)
|
Sr. No. |
Particulars |
Loans
o/s as on 31.3.08 |
Receipt
of loans |
Repayment
of loans |
Loans
o/s as on 31.3.09 |
Amount
of interest |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
1 |
As per data furnished by Board (other than GoP
loans & WCL) |
5960.53 |
1292.63 |
921.50 |
6331.66 |
602.48 |
|
2 |
Approved by Commission (other than GoP loans
& WCL) |
5960.53 |
1154.34 |
921.50 |
6193.37 |
595.70 |
2.14.4 As
per the audited accounts of the Board, GoP loans of Rs.1712.91 crore as on March
31, 2008 decreased to Rs.1660.52 crore by March 31, 2009. Interest payable on
the loan amount works out to Rs.219.19 crore for 2008-09 by applying an average
rate of interest of 13.20%. The Commission observes that the Board has claimed
‘Nil’ interest payable on GoP loans in the audited accounts for the year
2008-09. The Commission, however, allows interest of Rs.219.19 crore for GoP
loans on accrual basis in order to arrive at the gross interest payable in
2008-09. However, after adjusting Rs.162.34 crore disallowed on account of
diversion of capital funds for revenue purposes as discussed in Para 2.14.11,
an amount of Rs.56.85 crore is determined as interest payable on GoP loans.
This amount will be further adjusted as discussed in Para 2.14.12.
2.14.5 In the
Tariff Order of 2009-10, the Commission allowed an interest of Rs.140.15 crore
on short term loans of Rs.1362.00 crore raised to replace GoP loans recalled by
the Govt. The Commission now approves interest of Rs.151.05 crore on short term
borrowings by applying an interest rate of 11.09 % on the basis of the interest
claim for short term borrowings reflected in the audited accounts.
2.14.6. In the ARR of 2008-09, the Board
claimed interest on GPF amounting to Rs.105 crore which was allowed by the
Commission. In the review, the Commission revised these expenses to Rs.115
crore as claimed by the Board. However, in the ARR of 2010-11, the Board has
claimed these expenses at Rs.112.65 crore which is the same as reflected in the
Board’s audited accounts. This being a statutory expenditure, the interest
charges on this account are, accordingly allowed.
2.14.7. The Commission approved lease
rentals of Rs.0.05 crore in the Tariff Order of 2008-09 which were retained in
the review in Tariff Order of 2009-10. In the ARR of 2010-11, the Board has
claimed lease rentals of Rs.0.04 crore which tallies with the audited accounts
of the Board for 2008-09. The Commission, accordingly, approves this
expenditure on actual basis.
2.14.8. In the Tariff Order of 2008-09, the Commission
allowed interest on consumers’ security at Rs.4.20 crore as claimed by the
Board. In the review, these charges were revised to Rs.4.97 crore after
allowing 5% increase in the actual interest of Rs.4.73 crore paid to consumers
in the previous year. In the ARR of 2010-11, the Board has claimed an interest
of Rs.70.48 crore being interest paid to the consumers on their security
deposits. The Commission observes that as per audit notes to the audited
accounts of 2008-09, these expenses have been understated by Rs.70.61 crore due
to short provision of interest on security deposits. After taking into account
the audit notes, the interest payable to the consumers will work out to
Rs.141.09 crore for the year 2008-09. The expenditure being obligatory is
approved at Rs.141.09 crore.
The Commission observes that the Board has claimed
an amount of Rs.52.45 crore under ‘Interest & Finance Charges’, being
discounts allowed to the consumers for advance payment of bills. However, as
this amount is being utilized by the Board for its revenue expenditure, its
requirement of working capital is set off to this extent. Therefore, the
Commission does not approve any interest on this account.
2.14.9 In the
Tariff Order of 2008-09, the Commission approved interest of Rs.98.64 crore as
interest on normative working capital of Rs.758.75 crore for the year. This
expenditure was revised to Rs.97.73 crore on normative working capital of
Rs.796.76 crore. In the ARR of 2010-11, the Board has claimed interest of
Rs.569.54 crore for the working capital which is inclusive of interest on loans
of Rs.1362 crore as allowed in para 2.14.5. This interest has been computed on
the actual quantum of working capital loans availed of by the Board. However,
the allowable working capital loans admissible on normative basis are brought
out in Table 2.12 below:
Table 2.12: Working Capital Requirement
|
Sr. No. |
Particulars |
Rs. crore |
|
1 |
One month Fuel Cost |
243.04 |
|
2 |
One month Power Purchase Cost |
432.00 |
|
3 |
One month Employee cost |
147.35 |
|
4 |
One month A&G cost |
5.91 |
|
5 |
One month R&M Expenses |
28.42 |
|
6 |
Total Working Capital Required |
856.72 |
The allowable
working capital loans work out to Rs.856.72 crore on normative basis on which
interest charges comes to Rs.104.95 crore at an interest rate of 12.25% being
the PLR of SBI as on April 2008. Accordingly, interest charges of Rs.104.95
crore are allowed.
2.14.10 In the Tariff Order of 2008-09, the Commission
approved finance charges of Rs.11.75 crore at the rate of 0.66% for allowable
loans of Rs.1781 crore. In the review, the Commission approved these charges at
Rs.5.03 crore by applying the rate of 0.45% as claimed by the Board for
allowable loans of Rs.1117.18 crore against Rs.13.52 crore claimed by the Board
for fresh borrowings of Rs.2989.30 crore. In the ARR for the year 2010-11, the
Board has claimed finance charges of Rs.22.23 crore which is the same as
depicted in the audited accounts for loans of Rs.1292.63 crore actually availed
of by the Board. The Board has not provided any justification for claiming
higher finance charges. Therefore, the Commission considers it appropriate to
apply the rate of 0.45% for allowable loans of Rs.1154.34 crore for the year
2008-09 and allows finance charges of Rs.5.19 crore.
2.14.11 The Commission has also re-determined the
diversion of capital funds for revenue purposes at Rs.2624.76 crore based on
the Board’s audited accounts for the year 2008-09 as given in Table 2.13:
Table 2.13: Diversion of
Capital Funds
(Rs. crore)
|
Sl. No. |
Item |
Year 2008-09 |
|
1 |
Net
Fixed Block |
10385.69* |
|
2 |
Works
in progress (WIP) during the year |
3004.72** |
|
3 |
Inventory
at Const. Stores |
176.53 |
|
4 |
Total
(1+2+3) |
13566.94 |
|
5 |
Less
Consumers’ contribution and grants & subsidy towards cost of capital
assets |
3270.41 |
|
6 |
Balance
capital base (4-5) |
10296.53 |
|
7 |
Requirement
of Loans +equity |
10296.53 |
|
8 |
Average
GoP Loans for the year |
1686.71 |
|
9 |
Other
loans (other than NPL & TSPL) |
7049.15 |
|
10 |
Equity |
2946.11 |
|
11 |
SBI
Bonds (Debt servicing charges taken over by GoP) |
637.35 |
|
12 |
GPF
utilized by Board ( Accumulations in GPF Less amount invested) |
601.97 |
|
13 |
Actual
Loans + Equity (8+9+10+11+12) |
12921.29 |
|
14 |
Less
capital base |
10296.53 |
|
15 |
Amount
diverted (13-14) |
2624.76 |
|
16 |
Less Bonds for which debt servicing under-taken by
GoP |
637.35 |
|
17 |
Balance diverted amount (15-16) |
1987.41 |
|
18 |
Interest effect @13.20% (Average rate of
interest on GoP loans) |
262.34 |
*This figure is worked out as Rs.10385.69
(10339.34+54.97-8.62) crore after taking into account the effect of audit notes
i.e (I) assets were understated by Rs.54.97 crore (II) depreciation was
understated by Rs.8.62 crore.
**This figure is worked out as Rs.3004.72(3264.57-204.88-54.97)
crore after taking into account the audit notes i.e i) assets of Rs.204.88
crore relate to Irrigation Department of
Shahpur Kandi ii)Completed assets of
Rs.54.97 crore are shown as WIP.
The diversion of capital
funds for revenue purposes for the year works out to Rs.2624.76 crore out of
which debt servicing of SBI bonds of Rs.637.35 crore will have no effect on
interest charges of the Board as the same has been taken over by the GoP.
Therefore, the net diverted amount carrying interest liability is Rs.1987.41
crore on which interest works out to Rs.262.34 crore at an average rate of
13.20% (being average rate of interest on GoP loans of Rs.1660.52 crore as on
March 31, 2009). This interest of Rs.262.34 crore is being disallowed from the
interest cost on account of diversion of capital funds for 2008-09.
In this regard, the
Commission retains its decision to disallow interest cost of Rs.100 crore of
the Board on account of deficiencies in its working and the balance of
Rs.162.34 crore is to the account of the GoP. The latter amount is being
adjusted against interest of Rs.219.19 crore payable on GoP loans as determined
in para 2.14.4.
2.14.12 The Commission, in para 2.14.13 of the Tariff
Order of 2009-10, determined the actual interest on GoP loans paid in excess to
the Govt. by the Board at Rs.333.08 (289.92 + 43.16) crore for the years
2006-07 and 2007-08. In its Order dated September 13, 2007, the Commission had
held that the interest paid in excess by the Board is to be refunded by the
GoP. As discussed in para 2.14.4 and
2.14.11 an amount of Rs.56.85 crore is determined as payable by the Board to
GoP. Adjusting this amount, the net sum payable by the GoP to the Board works
out to Rs.276.23 (333.08-56.85) crore. This amount is being carried forward to
para 2.16.4.
2.14.13 In the ARR of 2008-09, the Board had claimed an
amount of Rs.82.40 crore as interest capitalized against which the Commission
allowed Rs.22.29 crore as per practice for capitalization of interest invariably followed by the Commission. In the
review, the Commission allowed capitalization charges at Rs.135.77 crore as
claimed by the Board. In the ARR of 2010-11, the Board has claimed
capitalization of interest charges of Rs.251.53 crore which is the same as per
the Board’s audited accounts. Accordingly, the Commission approves
capitalization of interest charges of Rs.251.53 crore for the year 2008-09.
Accordingly, the Commission approves the net Interest
and Finance charges of Rs.815.99 crore for the year 2008-09.
2.15 Return on Equity
2.15.1 In the Tariff Order of 2008-09, the Commission, in
accordance with Regulation 25 of the PSERC Tariff Regulations, approved a Return
on Equity of Rs.412.46 crore calculated at 14% on the equity of Rs.2946.11
crore as on April 01, 2008. In the review, the Commission retained Return on Equity
at Rs.412.46 crore for that year. As per the audited accounts of the Board for
the year 2008-09, GoP equity in the Board remained unchanged at Rs.2946.11
crore.
Accordingly, the
Commission retains Return on Equity at Rs.412.46 crore for the year 2008-09 as
approved earlier.
2.16 Subsidy and Other Amounts Payable by the GoP
2.16.1 As
per the audited accounts for the year 2008-09, total subsidy of Rs.2601.73 crore has been paid by the GoP to the Board.
2.16.2 The subsidy payable by the
GoP is now trued up as under:
·
AP Consumption: The Commission has accepted AP consumption
at 8395 MUs on which revenue @ 240 paise per unit works out to Rs.2014.80
crore. The consumers were not billed any amount on this account. Thus,
Rs.2014.80 crore (exclusive of meter rentals and service charges of Rs.7.00
crore) was payable by the GoP as AP subsidy.
·
Scheduled Castes (SC) Domestic Supply (DS) Consumers: The
Commission notes that as per the decision of the GoP, Scheduled Castes DS
consumers with a connected load of upto 1000 watts will be given free power
upto 200 units per month. The Board has claimed subsidy of Rs.225.28 crore
besides meter rentals and service charges of Rs.18.34 crore on this account.
Accordingly, the Commission approves subsidy of Rs.243.62 crore under this
head.
·
Non-SC Below Poverty Line (BPL) Consumers: The GoP had also decided to give free supply of power
upto 200 units per month to Non-SC BPL DS consumers with connected load upto
1000 watts. The Board has claimed subsidy of Rs.1.98 crore inclusive of meter
rentals and service charges of Rs. 0.11 crore on this account. The Commission
approves the same.
2.16.3 On the above basis, total subsidy payable by the GoP for the year
2008-09 works out to Rs.2267.40 (2014.80 +7.00+243.62 +1.98) crore.
2.16.4 The subsidy payable to the Board for 2008-09 was paid by the GoP
in a staggered manner, not in keeping with the methodology specified by the
Commission for making such payment. The Board has claimed that it had to meet
its revenue requirements by taking short term loans at an average interest rate
of 11.09% (effective short term rate based on the Board’s ARR) from the open
market to cover for deficit on account of late payment of subsidy. The
Commission, in the review of 2008-09, had determined interest of Rs.42.98 crore
for delayed payment of subsidy. The amount of interest has now been re-worked
to Rs.55.05 crore on payable subsidy of Rs.2267.40 crore.
In para 2.16.2 of the Tariff Order of 2009-10 (true up of 2007-08), the
Commission determined total arrears of subsidy payable by the GoP upto the year
2007-08 as Rs.97.83 crore.
Thus, subsidy of Rs.2420.28 (2267.40+55.05+97.83) crore is
now determined as payable by the GoP to the Board for the year 2008-09 against
subsidy of Rs.2601.73 crore already paid, resulting in excess payment of
subsidy of Rs.181.45 crore. This is being carried forward to para 5.4.
However, the GoP will be liable to pay an amount of Rs.
276.23 crore as discussed in para 2.14.12. This is being carried forward to
para 3.15.
2.17 Prior Period Expenses
In its ARR for 2010-11, the Board has claimed prior period expenses of
Rs.107.60 crore being payments pertaining to the previous years but made during
the year 2008-09. As per the audited accounts, the prior period expenses are
Rs.107.60 crore inclusive of Rs.3.08 crore on account of employee cost. The
Board has not intimated the period to which the expenses on account of employee
cost pertain. These expenses are disallowed assuming that these expenses
pertain to the period during which the employee cost of the Board remained
capped.
Accordingly, the
Commission approves prior period expenses of Rs.104.52 crore for the year 2008-09.
2.18 Non-Tariff Income
2.18.1 The
Commission approved non-tariff income of Rs.412.00 crore for the year 2008-09 in the Tariff Order of 2008-09. This
was increased to Rs.442.57 crore in the Tariff Order of 2009-10 based on
revised estimates of the Board.
2.18.2 As per the
audited accounts of the Board for the year 2008-09, the ‘other income’ of the Board is Rs.303.03 crore.
Besides this, an amount of Rs.104.38 crore is deducted from the sale of power
and counted towards non-tariff income of the Board [as per para 2.19.2].
Accordingly, as per audited accounts of the Board, non tariff income works out
to Rs.407.41 crore. In addition, the
subsidy of Rs.7.00 crore for AP consumers and Rs.18.45 crore for SC and Non-SC
BPL Domestic Supply consumers has been received from the GoP on account of
meter rentals and service charges which also forms part of non tariff income
for 2008-09. Taking these receipts into account, the non-tariff income of the
Board for the year amounts to Rs.432.86 (303.03+104.38+7.00+18.45) crore.
2.18.3 The Commission, in para 5.9 of the Tariff Order
of 2009-10, had directed the Board to report the final outcome of the audit notes
on the Board’s accounts for the year 2007-08 regarding its miscellaneous income failing which the non tariff income of the Board would be
re-determined on the basis of those audit notes. As per the audit notes, the
Misc income was understated to the extent of Rs.151.10 crore and comprised of
(i) deposits of Rs.103.89 crore outstanding for more than 3 years, (ii)
deposits of Rs.0.97 crore received against burnt meters and (iii) advance of Rs.46.24 crore received
against sale of scrap. During processing of the ARR, the Board had intimated that
out of Rs.103.89 crore, Rs.60.00 crore relates to receipts on account of
Central Plan Assistance and efforts were being made to identify the details of
the remaining amount. However, the Board
has not submitted any clarification regarding the remaining amount of Rs.43.89
crore under the head ‘deposits outstanding’. Regarding deposits on account of
burnt meters, the Board has submitted that it is a continuing process and due
credit has been reflected in the Suspense Schedule for the year 2008-09.
Similar treatment has been given to the advance against sale of scrap. This
explanation of the Board is not acceptable as any credit to the Suspense
account is made pending final credit in the books of account. Further
clarification sought on this account did not yield any results. Therefore, the
Commission is left with no alternative but to treat the balance amount of
Rs.91.10 (43.89+0.97+46.24) crore as understated miscellaneous income of the
Board and count the same towards non-tariff income of the Board for the year
2008-09. Accordingly, the non tariff income of the Board for the year is
determined at Rs.523.96 (432.86+91.10) crore.
The Commission
accordingly, approves Non-Tariff Income at Rs. 523.96 crore for the year
2008-09.
2.19
Revenue from Sale of Power
2.19.1 The
Commission approved the revenue from tariff at Rs.11231.11 crore (including GoP subsidy of Rs.2602 crore) in
the Tariff Order for the year 2008-09. In the review, the revenue from sale of
power was revised to Rs.11139.38 crore inclusive of GoP subsidy.
2.19.2 In the audited accounts for 2008-09, the
revenue actually received from sale of power is Rs.9010.34 crore excluding GoP
subsidy. This revenue includes non-tariff income of Rs.104.38 crore on account
of meter rentals and service charges (Rs.81.47 crore), wheeling charges
(Rs.2.07 crore) and miscellaneous charges other than peak load exemption
charges (Rs.20.84 crore). These receipts have been accounted for in the
non-tariff income and are hence deducted from the head ‘revenue from sale of
power’. Therefore, net revenue from sale of power works out to Rs.8905.96
(9010.34-104.38) crore. Besides, the Board had received subsidy of Rs. 2601.73
crore and Rs.0.08 crore on account of revenue grant. However, subsidy of
Rs.2267.40 crore determined as payable for 2008-09 in para 2.16 of this Tariff Order
includes an amount of Rs.25.45 crore related to meter rentals and service
charges which is a part of non-tariff income for the year. Accordingly, after
adding subsidy of Rs.2241.95 (2267.40-25.45) crore paid by the GoP to the
Board, total revenue from sale of power amounts to Rs.11147.91 crore.
The Commission,
therefore, approves the revenue from sale of power at Rs.11147.91 crore
for the year 2008-09.
2.20. Other Debits and Extraordinary Items
2.20.1 The audited accounts of the Board for the year 2008-09, show
‘other debits and extraordinary items’ at Rs.5.80 crore. However, as per audit notes,
these are understated by i) Rs.16.65 crore on account of loss on the
manufacture of PCC Poles shown as receivable ii) Rs.3.95 crore due to
non-charging of expenditure incurred on survey/feasibility study of projects,
which have not matured/sanctioned iii) Rs.4.65 crore due to wrong adjustment of
expenses incurred under liabilities for expenses iv) Rs.0.13 crore outstanding
against deceased employees and (v) Rs.1.93 crore outstanding in respect of idle
labour in TLSC divisions which were required to be written off. Accordingly,
the actual figure under this head works out to Rs.33.11
(5.80+16.65+3.95+4.65+0.13+1.93) crore.
The
Commission allows an expenditure of Rs.33.11 crore for the year 2008-09 on this account.
2.21 Fringe Benefit Tax (FBT)
The audited accounts of the Board
indicate that Rs.4.90 crore was paid as Fringe Benefit Tax (FBT) which is the
same as claimed by the Board in the ARR.
This
being a statutory payment, the Commission approves the amount of Rs.4.90 crore
for the year 2008-09.
2.22 True up of ARR for 2008-09
2.22.1 In view of the above analysis, the trued up revenue requirement
for the year 2008-09 is as per details given in Table 2.14.
Table 2.14:
Revenue Requirement
(Rs. crore)
|
Sr. No. |
Item of
Expense |
Approved
by Commission in T. O. for 2008-09 |
Approved
by Commission in T. O. for 2009-10 |
Actuals
as per Annual Accounts for 2008-09 |
Final
approval by Commission |
|
1 |
2 |
3 |
4 |
5 |
6 |
|
1 |
Cost of fuel |
2742.62 |
2978.85 |
3154.06 |
2916.49 |
|
2 |
Cost of power purchase |
4186.33 |
4414.59 |
5184.05 |
5184.05 |
|
3 |
Employee cost |
1773.55 |
1768.19 |
2202.04 |
1768.19 |
|
4 |
R&M expenses |
323.19 |
339.56 |
338.54 |
341.03 |
|
5 |
A&G Expenses |
79.29 |
71.93 |
70.96 |
70.96 |
|
6 |
Depreciation |
783.34 |
721.50 |
693.73 |
702.35 |
|
7 |
Interest & finance charges |
767.48 |
537.66 |
1194.59 |
815.99 |
|
8 |
Carrying cost of gap |
102.15 |
- |
|
|
|
9 |
Return on Equity @ 14% |
412.46 |
412.46 |
412.46 |
412.46 |
|
10 |
Prior period expenses |
|
|
107.60 |
104.52 |
|
11 |
Other Debits and Extraordinary
items |
|
|
5.80 |
33.11 |
|
12 |
Fringe Benefit Tax |
4.56 |
4.98 |
4.90 |
4.90 |
|
13 |
Total revenue requirement |
11174.97 |
11249.72 |
13368.73 |
12354.05 |
|
14 |
i) Less expenses disapproved
due to higher T&D loss ii) Less expenses disapproved
due to less generation |
|
|
|
435.99
96.29 |
|
iii)Add Additional incentive
for higher thermal generation in 2007-08* |
|
|
|
24.16 |
|
|
15 |
Revenue requirement |
11174.97 |
11249.72 |
13368.73 |
11845.93 |
|
16 |
Less: non tariff income |
412 |
442.57 |
407.42 |
523.96 |
|
17 |
Net revenue requirement |
10762.97 |
10807.15 |
12961.31 |
11321.97 |
|
18 |
Revenue from tariff |
11231.11 |
11139.38 |
11507.77 |
11147.91 |
|
19 |
Gap (surplus (+)/ deficit (-) |
468.14 |
332.23 |
|
(-)174.06 |
|
20 |
Gap (deficit (-) for the year
2007-08 |
(-)717.78 |
(-)803.31 |
|
(-)803.31 |
|
21 |
Total gap (deficit) (-) |
(-)249.64 |
(-)471.08 |
(-)1453.54 |
(-)977.37 |
|
22 |
Energy sales (MUs) |
32,632 |
30,892 |
32,627 |
31673 |
*As per Order dated
From the true up for the year 2008-09, it is noted that
there is a gap (deficit) of Rs.174.06 crore against a gap (surplus) of Rs.332.23 crore
determined earlier by the Commission in the review of 2008-09 in the Tariff
Order dated
Chapter 3
Review for the Year 2009-10
3.1 Background
3.1.1 The Tariff Order of the Commission for 2009-10 contained its
approvals of costs and revenue projections based on the Board’s estimates for
different items of costs to be incurred and revenue likely to accrue during the
year. The Board has, in its ARR for the year 2010-11, now furnished revised
estimates for 2009-10.
3.1.2 There are differences in certain items of costs as well as
revenues between the approvals granted by the Commission and the revised
estimates now furnished by the Board. The Commission considers it appropriate
and fair to re-visit and review the approvals granted by it in the Tariff Order
(2009-10) with reference to the revised estimates now made available by the
Board but without altering the principles and norms adopted earlier. These
matters are discussed in the succeeding paragraphs.
3.2 Energy Demand (Sales)
3.2.1 Metered Energy Sales
The Board
has re-estimated energy sales to metered categories for 2009-10 on the basis of
actuals for the first 6 months (April ‘09 to Sept ‘09) and by applying category
wise half yearly Cumulative Annual Growth Rate (CAGR) of the second half year
for the period 2005-06 to 2008-09, to the corresponding actual category wise
sales in the second half of 2008-09.
The
Commission has estimated sales to metered categories for 2009-10 on the basis
of actual sales for first 6 months of 2009-10 (April ‘09 to Sept ‘09) submitted
by the Board in its ARR petiton and by applying category wise half yearly CAGR
for the 3 year period from 2005-06 to 2008-09, to the corresponding actual
category wise sales during second half of 2008-09. As per last three year CAGR
of second half sales, two of the categories (medium supply and public lighting)
show a negative growth rate but the Commission has considered 0% growth rate as
the Board has not furnished any information on negative growth in respect of
these two categories. The Commission has worked out the estimated sales to
metered categories as 21092 MUs for the year 2009-10 (detailed in Table 3.1) as
against 21379 MUs projected by the Board.
Table 3.1: Estimated Energy Sales during 2009-10
(MUs)
|
Sr. No. |
Category |
Sales during 2nd Half of
05-06 (actual) |
Sales during 2nd Half of 08-09
(actual) |
3 year CAGR during 2nd
Half of 06 to 2nd Half of 09 |
Sales during 1st half of FY 09-10 |
Estimated sales during 2nd Half of
09-10 |
Estimated sales for 2009-10 (6+7) |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
1 |
Domestic |
2589 |
3335 |
8.81% |
3671 |
3629 |
7300 |
|
2 |
Non-Residential |
745 |
998 |
10.24% |
1078 |
1100 |
2178 |
|
3 |
Small
Power |
352 |
362 |
0.94% |
377 |
365 |
742 |
|
4 |
Medium
Supply |
806 |
732 |
-3.16% |
777 |
732 |
1509 |
|
5 |
Large
Supply |
3957 |
4329 |
3.04% |
4158 |
4461 |
8619 |
|
6 |
Public
Lighting |
67 |
66 |
-0.50% |
62 |
66 |