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ASSAM ELECTRICITY REGULATORY COMMISSION
(AERC)
TARIFF ORDER
TRUING UP OF FY 2013-14
APR OF FY 2014-15, ARR AND TARIFF FOR
FY 2015-16
Assam Power Distribution Company Limited
(APDCL)
Petition No. 3/2015
ASSAM ELECTRICITY REGULATORY COMMISSION
A.S.E.B. Campus, Dwarandhar,
G. S. Road, Sixth Mile, Guwahati - 781 022
Website: www.aerc.gov.in Email: [email protected]
i
Contents
ORDER................................................................................................................................... viiviii
1. Introduction ............................................................................................................................. 1
1.1 CONSTITUTION OF THE COMMISSION ........................................................................ 1
1.2 TARIFF RELATED FUNCTIONS OF THE COMMISSION .............................................. 1
1.3 BACKGROUND ................................................................................................................ 2
1.4 PROCEDURAL HISTORY ................................................................................................ 4
1.5 ADMISSION OF THE PETITION AND PUBLIC PROCESS ............................................ 4
1.6 STATE ADVISORY COMMITTEE MEETING .................................................................. 7
2. Summary of ARR and Tariff Petition .................................................................................... 8
3. Summary of Objections raised, Responses of APDCL and Commission’s comments12
4. Truing up for FY 2013-14 ..................................................................................................... 63
4.1 METHODOLOGY FOR TRUING UP .............................................................................. 63
4.2 BACKGROUND .............................................................................................................. 64
4.3 ENERGY SALES ............................................................................................................ 64
4.4 DISTRIBUTION LOSSES ............................................................................................... 65
4.5 ENERGY REQUIREMENT ............................................................................................. 66
4.6 POWER PURCHASE ..................................................................................................... 67
4.7 OPERATION AND MAINTENANCE (O&M) EXPENSES .............................................. 70
4.8 DEPRECIATION ............................................................................................................. 73
4.9 INTEREST AND FINANCE CHARGES ......................................................................... 75
4.10 INTEREST ON WORKING CAPITAL ............................................................................. 78
4.11 INTEREST ON CONSUMER SECURITY DEPOSIT ..................................................... 79
4.12 PROVISION FOR BAD AND DOUBTFUL DEBTS ........................................................ 79
4.13 OTHER DEBITS ............................................................................................................. 79
4.14 NET PRIOR PERIOD EXPENSES ................................................................................. 80
4.15 RETURN ON EQUITY .................................................................................................... 81
4.16 PROVISION FOR TAXES .............................................................................................. 82
4.17 NON TARIFF INCOME ................................................................................................... 82
4.18 MISCELLANEOUS RECEIPTS/OTHER INCOME ......................................................... 83
4.19 REVENUE FROM SALE OF POWER ............................................................................ 84
4.20 GOVERNMENT SUBSIDY ............................................................................................. 84
4.21 TRUE UP OF ARR FOR FY 2013-14 ............................................................................. 85
5. Annual Performance Review for FY 2014-15 ..................................................................... 86
5.1 INTRODUCTION ............................................................................................................ 86
5.2 ENERGY SALES ............................................................................................................ 86
ii
5.3 DISTRIBUTION LOSSES ............................................................................................... 88
5.4 ENERGY REQUIREMENT ............................................................................................. 89
5.5 POWER PURCHASE ..................................................................................................... 89
5.6 OPERATION AND MAINTENANCE (O&M) EXPENSES .............................................. 91
5.7 DEPRECIATION ............................................................................................................. 93
5.8 INTEREST AND FINANCE CHARGES ......................................................................... 94
5.9 INTEREST ON WORKING CAPITAL ............................................................................. 96
5.10 INTEREST ON CONSUMER SECURITY DEPOSIT ..................................................... 96
5.11 PROVISION FOR BAD AND DOUBTFUL DEBTS ........................................................ 97
5.12 OTHER DEBITS ............................................................................................................. 97
5.13 NET PRIOR PERIOD EXPENSES ................................................................................. 97
5.14 RETURN ON EQUITY .................................................................................................... 97
5.15 PROVISION FOR TAXES .............................................................................................. 98
5.16 NON TARIFF INCOME ................................................................................................... 98
5.17 MISCELLANEOUS RECEIPTS/OTHER INCOME ......................................................... 99
5.18 GOVERNMENT SUBSIDY ............................................................................................. 99
5.19 REVENUE FROM SALE OF POWER ............................................................................ 99
5.20 APR FOR FY 2014-15 .................................................................................................. 100
6. Revised Annual Revenue Requirement for FY 2015-16 ................................................. 101
6.1 INTRODUCTION .......................................................................................................... 101
6.2 ENERGY SALES .......................................................................................................... 101
6.3 CATEGORY-WISE ENERGY SALES .......................................................................... 102
6.4 HT Temporary (New Category) .................................................................................... 110
6.5 TOTAL ENERGY SALES ............................................................................................. 110
6.6 DISTRIBUTION LOSSES ............................................................................................. 111
6.7 ENERGY REQUIREMENT ........................................................................................... 112
6.8 POWER PURCHASE ................................................................................................... 113
6.9 TOTAL POWER PURCHASE COST ........................................................................... 118
6.10 OPERATION AND MAINTENANCE (O&M) EXPENSES ............................................ 118
6.11 CAPITAL EXPENDITURE AND SOURCES OF FUNDING ......................................... 120
6.12 CAPITALISATION ........................................................................................................ 122
6.13 DEPRECIATION ........................................................................................................... 122
6.14 INTEREST AND FINANCE CHARGES ....................................................................... 124
6.15 INTEREST ON WORKING CAPITAL ........................................................................... 125
6.16 INTEREST ON CONSUMER SECURITY DEPOSIT ................................................... 125
6.17 PROVISION FOR BAD AND DOUBTFUL DEBTS ...................................................... 126
6.18 OTHER DEBITS ........................................................................................................... 126
6.19 NET PRIOR PERIOD EXPENSES ............................................................................... 126
iii
6.20 RETURN ON EQUITY .................................................................................................. 126
6.21 NON TARIFF INCOME ................................................................................................. 127
6.22 MISCELLANEOUS RECEIPTS/OTHER INCOME ....................................................... 127
6.23 GOVERNMENT SUBSIDY ........................................................................................... 128
6.25 REVENUE AT PROPOSED TARIFF ........................................................................... 128
6.26 ANNUAL REVENUE REQUIREMENT (ARR) .............................................................. 129
6.27 REVENUE GAP FOR FY 2015-16 ............................................................................... 129
7 Tariff Principles and Approved Tariff for FY 2015-16 ..................................................... 131
7.1 INTRODUCTION .......................................................................................................... 131
7.2 REVENUE DEFICIT / SURPLUS FOR FY 2015-16 .................................................... 132
7.3 TARIFF DESIGN .......................................................................................................... 133
7.4 CROSS SUBSIDY ........................................................................................................ 135
7.5 FUEL PRICE AND POWER PURCHASE ADJUSTMENT CHARGES (FPPPA) ........ 137
8. Wheeling Charges and Cross subsidy surcharge .......................................................... 139
8.1 INTRODUCTION .......................................................................................................... 139
8.2 ALLOCATION MATRIX ................................................................................................ 139
8.3 WHEELING CHARGES ................................................................................................ 140
8.4 CROSS SUBSIDY SURCHARGE ................................................................................ 141
9. Compliance of Directives by APDCL and new Directives ............................................. 142
9.1 COMPLIANCE OF DIRECTIVES ISSUED BY THE COMMISSION ........................... 142
9.2 COMPLIANCE OF OLD DIRECTIVES ......................................................................... 142
9.3 NEW DIRECTIVES ....................................................................................................... 155
10. Schedule of Tariff ........................................................................................................... 156
Annexure-1 ................................................................................................................................. 186
iv
List of Tables
Table 2.1: Summary of Truing Up for FY 2013-14 (Rs. Crore) ....................................................... 8
Table 2.2: Annual Performance Review for FY 2014-15 (Rs. Crore) .............................................. 9
Table 2.3: Revenue Requirement for FY 2015-16 ........................................................................ 10
Table 4.1:Energy Sales for FY 2013-14 (MU) ............................................................................... 64
Table 4.2: Distribution loss for FY 2013-14 ................................................................................... 66
Table 4.3:Energy Requirement for FY 2013-14 (MU) ................................................................... 67
Table 4.4: Actual Power Purchase Quantum and Cost for FY 2013-14 as submitted by APDCL 68
Table 4.5: Approved Power Purchase Cost Truing up for FY 2013-14 (Rs. Crore) ...................... 70
Table 4.6:O&M Expenses for FY 2013-14 as submitted by APDCL (Rs. Crore) .......................... 70
Table 4.7: Depreciation approved in the truing up for FY 2013-14 (Rs. Crore) ............................ 74
Table 4.8: Actual Debt Capital as submitted by APDCL for FY 2013-14 (Rs. Crore) ................... 75
Table 4.9: Interest and Finance Charges as submitted by APDCL (Rs. Crore)............................ 76
Table 4.10: Approved Interest and Finance Charges (Rs. Crore)................................................ 77
Table 4.11: Interest on Working Capital as submitted by APDCL (Rs. Crore).............................. 78
Table 4.12: Approved Interest on Working Capital for FY 2013-14 (Rs. Crore) ........................... 78
Table 4.13: Other Debits as submitted by APDCL (Rs. Crore) ..................................................... 79
Table 4.14: Prior Period Expenses/Charges approved by the Commission for FY 2013-14 (Rs.
Crore) ............................................................................................................................................. 80
Table 4.15: Return on Equity for FY 2013-14 as submitted by APDCL (Rs. Crore) ..................... 81
Table 5.1:Energy Sales for FY 2014-15 (MU) ............................................................................... 87
Table 5.2: Distribution loss for FY 2014-15 ................................................................................... 88
Table 5.3:Energy Requirement for FY 2014-15 (MU) ................................................................... 89
Table 5.4: Actual Power Purchase Quantum and Cost for FY 2014-15 as submitted by APDCL 90
Table 5.5: Power Purchase Cost for APR of FY 2014-15 (Rs. Crore) .......................................... 91
Table 5.6:: Depreciation for FY 2014-15 (Rs. Crore) .................................................................... 93
Table 5.7: Interest & Finance Charges considered for review of FY 2014-15 (Rs. Crore)..... ..... 95
Table 5.8: Interest on Working Capital submitted by APDCL (Rs. Crore) .................................... 96
Table 5.9: Interest on Working Capital considered in APR for FY 2014-15 (Rs. Crore) ............... 96
Table 6.1: Total Energy Sales for FY 2015-16 (MU) .................................................................. 110
Table 6.2: Energy Requirement for FY 2015-16 (MU) ............................................................... 112
Table 6.3: Revised APGCL Generation approved by the Commission for FY 2015-16 (MU) ... 113
Table 6.4: Energy Balance for FY 2015-16 ................................................................................. 114
Table 6.5: Amount required for purchase of RECs for FY 2015-16 ............................................ 115
Table 6.6: Approved Power Purchase Cost for FY 2015-16 ....................................................... 116
Table 6.7: Approved Transmission Charges (Rs. Crore) ........................................................... 117
Table 6.8: Approved Total Power Purchase Costs for FY 2015-16 (Rs. Crore) ........................ 118
Table 6. 9: Escalation rate for O&M Expenses............................................................................ 118
Table 6.10: Capital Investment Plan submitted by APDCL for FY 2015-16 (Rs. Crore)............. 120
Table 6.11: Funding of Capital Expenditure Schemes Proposed by APDCL (Rs. ...................... 121
Table 6.12: Funding of Capital Expenditure Schemes Approved for FY 2015-16 (Rs.Crore) .... 121
Table 6.13: Approved capital expenditure and capitalization for FY 2015-16 (Rs. Crore) ........ 122
v
Table 6.14: Computation of Depreciation for FY 2015-16 (Rs. Crore) ....................................... 123
Table 6.15: Approved Interest & Finance Charges for FY 2015-16 (Rs. Crore) ........................ 124
Table 6.16: Interest on Working Capital for FY 2015-16 (Rs. Crore) ......................................... 125
Table 6.17: Return on Equity for FY 2015-16 as submitted by APDCL (Rs. Crore) ................... 126
Table 6.18: Approved ARR for FY 2015-16 (Rs. Crore) .............................................................. 129
Table 6.19: Cumulative Revenue Gap for FY 2015-16 as sought by APDCL (Rs. Crore) ......... 129
Table 6. 20: Approved Revenue gap/(surplus) for FY 2015-16 (Rs. Crore) ............................... 130
Table 7.1: Category-wise full cost recovery tariff and decrease/increase in tariff in FY 2015-16
......................................................................................................................133
Table 7.2: Category-wise Tariff Without Subsidy and Tariff With Subsidy ................................. 135
Table 7.3: Category-wise cross-subsidy in FY 2015-16 (paise/kWh) ........................................ 136
Table 8.1: Allocation matrix for separation of ARR for Wires Business and Retail Supply
Business ....................................................................................................................................... 139
Table 8.2: Separation of ARR for Wires Business and Retail Supply Business for FY 2015-16
(Rs. Crore) ................................................................................................................................... 140
Table 8.3: Wheeling charges approved by the Commission for FY 2015-16............................. 140
Table 8.4: Cross subsidy surcharge for HT II Industry category for FY 2015-16 ....................... 141
vi
Abbreviations
A&G Administrative and General
ABITA Assam Branch of Indian Tea Association
ADB Asian Development Bank
AEGCL Assam Electricity Grid Corporation Limited
AERC Assam Electricity Regulatory Commission
APDCL Assam Power Distribution Company Limited
APGCL Assam Power Generation Corporation Limited
APTEL Appellate Tribunal For Electricity
ARR Annual Revenue Requirement
ASEB Assam State Electricity Board
AT&C Aggregate Technical & Commercial
BPL Below Poverty Line
BTPS Bongaingon Thermal Power Station
CAG Comptroller and Auditor General
CAGR Compounded Annual Growth Rate
CERC Central Electricity Regulatory Commission
CSGS Central Sector Generating Stations
CTU Central Transmission Utility
CVO Central Vigilance Office
CWIP Capital Work-In-Progress
DPR Detailed Project Report
DSM Demand Side Management
EPFI Employees‟ Pension Fund Investment
ERC Electricity Regulatory Commission
ERP Enterprise Resource Planning
FAR Fixed Asset Register
FCC Financial Completion Certificate
FPA Fuel Price Adjustment
FPPPA Fuel & Power Purchase Price Adjustment
GFA Gross Fixed Assets
GoA Government of Assam
GOI Government of India
GPF General Provident Fund
vii
JNNSM Jawaharlal Nehru National Solar Mission
kW Kilo Watt
kWh Kilo Watt Hour
MOD Merit Order Dispatch
MRI Meter Reading Instrument
MU Million Units
MW Mega Watt
MYT Multi Year Tariff
NCE Non-Conventional Energy
NEP National Electricity Policy
NESSIA North Eastern Small Scale Industries Association
NVVNL NTPC Vidyut Vyapar Nigam Ltd
NPS National Pension Scheme
O&M Operation and Maintenance
PGCIL Power Grid Corporation of India Limited
PPA Power Purchase Agreement
R&M Repairs and Maintenance
R-APDRP Restructured Accelerated Power Development Reforms Programme
RE Renewable Energy
REC Rural Electrification Corporation
RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana
RLDC Regional Load Despatch Centre
RoE Return on Equity
SAC State Advisory Committee
SLDC State Load Despatch Centre
STU State Transmission Utility
T&D Transmission & Distribution
TOD Time of Day
viii
ASSAM ELECTRICITY REGULATORY COMMISSION
Guwahati
Present
Shri Naba Kumar Das, Chairperson
Shri Dipak Chakravarty, Member
Petition No. 3 of 2015
Assam Power Distribution Company Limited (APDCL) Petitioner
ORDER
(Passed on July 24, 2015)
(1) The Commission vide its MYT Order dated November 21, 2013, approved the Multi
Year Tariff applicable to Assam Power Distribution Company Limited (hereinafter
referred to as “the APDCL”), for the period FY 2013-14 to FY 2015-16.
(2) Regulation 6.1 of the Assam Electricity Regulatory Commission (Terms and
conditions for determination of Tariff) Regulations, 2006 (hereinafter referred to as
the AERC Tariff Regulations, 2006) specifies that the Distribution licensee shall file a
Tariff Petition annually before the Commission to determine changes to the current
tariff not later than 1st December, except in case an extension is granted by the
Commission upon application.
(3) As such, the Assam Power Distribution Company Limited (APDCL) submitted a Misc.
petition on December 03, 2014 (Misc. Petition No. 20/2014) praying for extension of
time up to January 31, 2015 for submission of petitions for True Up for FY 2013-14
and Annual Performance Review (APR) for the FY 2014-15. APDCL also prayed for
exemption of filing the petition for ARR and tariff for FY 2015-16 as the order for
ix
Revision of ARR and Tariff for FY 2014-15 has been issued recently. The
Commission vide its Order dated December 17, 2014, granted extension to APDCL
for filing of the petition for True Up for FY 2013-14 and APR for FY 2014-15 up to
January 31, 2015. Commission also directed APDCL for submission of petition for
Revision of ARR and tariff for FY 2015-16, along with the petition for True Up for FY
2013-14 and APR for FY 2014-15 latest by January 31, 2015.
(4) The Assam Power Distribution Company Limited (APDCL) filed the Petition (Petition
No.3/2015) for True-up for FY 2013-14, Annual Performance Review (APR) for FY
2014-15 and approval of the Annual Revenue Requirement (ARR) for FY 2015-16
and corresponding tariff adjustments, under Section 62 of the Electricity Act, 2003 on
January 31, 2015. However, the APDCL submitted their Audited Statement of
Accounts for FY 2013-14, much later, i.e. on March 12, 2015.
(5) The Commission, on preliminary scrutiny, found that the Petition filed by the APDCL
was incomplete with regard to some material information. Therefore, additional
clarifications on the Petition were sought for, from the APDCL and replies were
received. The Commission in the larger interest of the consumers as well as the
licensee and abiding by the statutory obligation of tariff determination, admitted the
Petition on April 17, 2015, although additional clarifications were still required to be
submitted by the APDCL.
(6) Although, the Petition from the APDCL was admitted on April 17, 2015, the
Commission continued to receive additional clarifications from the APDCL on various
aspects as late as upto May 15, 2015.
(7) After the Petitions were admitted, in accordance with Section 64 of the Electricity Act
2003, the Commission directed the APDCL to publish a summary of the ARR and
tariff filing in local dailies to ensure due public participation. A copy of the Petition and
other relevant documents were also made available to consumers and other
interested parties at the office of the Managing Director of the APDCL and offices of
the Deputy General Manager of each circle of the APDCL. A copy of the Petition was
also made available on the websites of the Commission and the APDCL.
(8) Accordingly, a Public Notice was issued by the APDCL inviting
objections/suggestions from stakeholders to be submitted on or before May 15, 2015.
The notice was published in eleven (11) newspapers of the State on April 23, 2015,
both in English and Vernacular.
x
(9) Meanwhile, the Tariff Petition filed by the APDCL was also discussed in the meeting
of the State Advisory Committee (constituted under Section 87 of the Electricity Act,
2003) convened on May 08, 2015 held at Assam Administrative Staff College,
Khanapara, Guwahati.
(10) The Commission received objections from 14 (Fourteen) objectors on the Petitions
filed by the APDCL. The Commission sent communication to the objectors which
were served personally/by Registered Post for participation in the Hearing which was
held at District Library Auditorium, Guwahati on June 04, 2015. Also, a
comprehensive Notice of Hearing was published in seven (7) newspapers on May
27, 2015 in Assamese and English language. The details of objections and
responses are discussed in the relevant section of this tariff Order.
(11) The Commission, now in exercise of the powers vested under Section 61 and 62 of
the Electricity Act, 2003 and all other powers enabling it in this behalf and taking into
consideration and submissions made by the Petitioner, objections and suggestions
received from stakeholders and all other relevant materials on record, approved
Truing up of FY 2013-14, APR of FY 2014-15, and revised ARR and retail tariff for
FY 2015-16 and issues the Order accordingly, making the new tariff effective from
August 1, 2015.
(12) The approved tariffs shall be effective from August 1, 2015 and shall continue until
replaced by another Order by the Commission.
(13) The tariff schedule provided in this Order reflects the tariff after considering the
existing level of category wise Targeted Government Subsidy. The subsidized tariff
for the targeted categories of consumers, are contingent upon payment of subsidy as
agreed by the Government. Without the Government subsidy, the rates contained in
the full cost recovery tariff schedule shall become operative.
(14) The Commission further directs the APDCL to publish a Public Notice intimating the
revised tariff before the implementation of the Order, in English and Vernacular
Newspapers and on the website of the APDCL.
(15) Accordingly, Tariff Petition No. 3 of 2015 stands disposed of.
Sd/-
(D. Chakravarty) Member, AERC
Sd/- (N. K. Das)
Chairperson, AERC
1
1. Introduction
1.1 CONSTITUTION OF THE COMMISSION
1.1.1. The Assam Electricity Regulatory Commission (hereinafter referred to as the AERC
or the Commission) was established under the Electricity Regulatory Commissions
Act, 1998 (14 of 1998) on February 28, 2001. The first proviso of Section 82(1) of the
Electricity Act, 2003(36 of 2003) (hereinafter referred to as the “Act”) has ensured
continuity of the AERC under the Electricity Act, 2003.
1.1.2. AERC came into existence in August 2001 as a one-man Commission. Considering
the multidisciplinary requirements of the Commission, it was made a multi-Member
Commission comprising of three Members (including Chairperson) from January 27,
2006. The Commission started functioning as a multi-Member Commission on joining
of two Members from February 1, 2006.
1.1.3. The Commission is mandated to exercise the functions conferred on it under Section
86 of the Act and to exercise the powers conferred under Section 181 of the
Electricity Act, 2003 (36 of 2003) (hereinafter referred to as the Act).
1.2 TARIFF RELATED FUNCTIONS OF THE COMMISSION
1.2.1. Under Section 86 of the Act, the Commission inter-alia has the following tariff related
functions:
(a) to determine the tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be within the State;
(b) to regulate electricity purchase and procurement process of distribution utilities
including the price at which the electricity shall be procured from the generating
companies, from other licensees or from other sources through agreements for
purchase of power for distribution and supply within the State;
(c) to facilitate intra-State transmission and wheeling of electricity;
(d) to promote competition, efficiency and economy in the activities of the electricity
industry to achieve the objects and purpose of this Act.
2
1.2.2. Under Section 61 of the Act in the determination of tariffs, the Commission is to be
guided by the following:
(a) The principles and methodologies specified by the Central Commission for
determination of the tariff applicable to generating companies and transmission
licensees;
(b) The electricity generation, transmission, distribution and supply are conducted
on commercial principles;
(c) The factors, which would encourage competition, efficiency, economical use of
the resources, good performance, Optimum investments, and other matters
which the State Commission considers appropriate for the purpose of this Act;
(d) The interests of the consumers are safeguarded and at the same time, the
consumers pay for the use of electricity in a reasonable manner;
(e) That the tariff progressively reflects the cost of supply of electricity at an
adequate and improving level of efficiency and also gradually reduces cross
subsidies;
(f) The National Electricity Plans formulated by the Central Government including
the National Electricity Policy and National Tariff Policy.
1.2.3. In accordance with the provisions of the Act, the Commission shall not show undue
preference to any consumer of electricity in determining the tariff, but may
differentiate according to the consumers load factor, power factor, voltage, total
consumption of energy during any specified period or the time at which the supply is
required or the geographical position of any area, the nature of supply and the
purpose for which the supply is required. (Section 62 of the Act).
If the State Government decides to grant any subsidy to any consumer or class of
consumers in the tariff determined by the Commission, the State Government shall
pay the amount in advance to compensate the person affected by the grant of
subsidy in the manner the Commission may direct as a condition for the licence or
any other person concerned to implement the subsidy provided by the State
Government (Section 65 of the Act).
1.3 BACKGROUND
1.3.1 The Government of Assam notified Vide Memo No. PEL151/2003/Pt./165 dated
December 10, 2004, the restructuring of the erstwhile Assam State Electricity Board
(ASEB) into five entities namely:
3
(i) Assam Electricity Grid Corporation Limited (AEGCL) to carry out function as
State Transmission Utility (STU).
(ii) Assam Power Generation Corporation Limited (APGCL) to carry out function
of generation of electricity in the State of Assam.
(iii) Three Electricity Distribution Companies, namely Lower, Central and Upper
Assam Electricity Distribution Company Limited, to carry out functions of
distribution and retail sale of electricity In the districts covered under each
company area.
1.3.2 All Companies are duly incorporated with the Registrar of Companies as per the
Companies Act.
.
1.3.3 Further, in exercise of power under Section 172 of the Act‟03, the State Government
authorized ASEB to continue its trading functions by periodic notification till
September 2009.
1.3.4 In May 2009, as per GOA notification No PEL.41/2006/199 dated May 13, 2009, in
accordance with the Assam State Reform (Transfer and merger of Distribution
Functions and undertakings) scheme, 2009, CAEDCL and UAEDCL Distribution
Companies merged with the LAEDCL, thereby forming one distribution Company for
the State.
1.3.5 The name of the Company was changed from LAEDCL to Assam Power Distribution
Company Limited (APDCL) vide Certificate of Incorporation dated October 23, 2009.
1.3.6 The Government of Assam vide Notification dated March 12, 2013 dissolved ASEB
under Section 131 of the Act with effect from March 31, 2013 and transferred ASEB‟s
current functions and reassigned its personnel to its successor entities namely
APDCL, AEGCL and APGCL in accordance with the Scheme of Reorganization.
1.3.7 The Commission notified the AERC Tariff Regulations, 2006 vide Notification No.
AERC.2005/19 dated April 28, 2006, which was notified in the Assam Gazette on
May 24, 2006.
4
1.3.8 In accordance with Regulation 5.3 of the AERC Tariff Regulations, 2006, the tariff will
be determined on the basis of the principles enunciated under the Multi Year tariff
principle for a period of three years commencing from April 1, 2006.
APDCL had filed the MYT Petition for the Control Period of three years beginning
from FY 2010-11 to FY 2012-13 on February 15, 2010. The Commission, after
following the due procedure, issued the tariff Order on May 16, 2011.
The Commission, vide Order dated February 28, 2013, carried out True up for FY
2009-10 and suo-moto proceedings for True up of FY 2010-11, Performance Review
for FY 2011-12 and determination of ARR and tariff of APDCL for FY 2012-13.
The Commission vide MYT Order dated November 21, 2013, approved the MYT
Order for the period from FY 2013-14 to FY 2015-16 and retail tariff for FY 2013-14.
The Commission, vide Order dated November 21, 2014 carried out True up for
FY 2011-12 and 2012-13, Annual Performance Review for FY 2013-14 and
determination of ARR and tariff of APDCL for FY 2014-15.
1.4 PROCEDURAL HISTORY
1.4.1 As per the AERC tariff Regulations, 2006, APDCL is required to file the Petition for
determination of ARR and tariff latest by 1st December before the Commission. The
APDCL filed the Petition for approval of True-up for FY 2013-14, APR for FY 2014-15
and approval of ARR for FY 2015-16 and its corresponding tariff adjustments on
January 31, 2015.
1.5 ADMISSION OF THE PETITION AND PUBLIC PROCESS
1.5.1 The Commission conducted the preliminary analysis of the Petition submitted by
APDCL and found that the Petition was incomplete due to need of some material
information. Therefore, the Commission sought additional clarifications on the
Petition from APDCL, as required from time to time. The key additional clarifications
were sought on February 20, 2015, March 12, 2015, March 21, 2015 and April 07,
2015. Based on the additional information requirements, the Commission has also
conducted discussions/meeting with APDCL on February 27, 2015, March 13, 2015,
March 21, 2015 and April 07, 2015. In response to the additional information sought
by the Commission, AEGCL submitted the additional information from time to time.
5
The key additional information were submitted by APDCL on March 07, 2015, March
21, 2015 and April 10, 2015.
1.5.2 Based on the additional information requirements, discussions and technical
validation sessions, APDCL submitted the revised petition on April 16, 2015.
1.5.3 Thereafter, the Commission admitted the Petition of APDCL for True-up for FY 2013-
14, APR of FY 2014-15 and revision of ARR & approval of Tariff for FY 2015-16
(Petition No. 3/2015) on April 17, 2015. Additionally, after admission of the petition,
APDCL submitted information related to the Petition based on query asked by the
Commission on May 15, 2015.
1.5.4 In accordance with Section 64 of the Act‟03, the Commission directed APDCL to
publish the information in the abridged form and manner to ensure due public
participation.
1.5.5 The copies of the Petition and other relevant documents were made available to
consumers and other interested parties at the office of the Deputy General Manager
of each Distribution Circle of APDCL and office of the Chief General Manager
(Commercial), APDCL. APDCL was also directed to make the copy of the Petition on
APDCL‟s website. A copy of the Petition was made available on the website of the
website of APDCL (www.apdcl.gov.in) and also on the website of the Commission
(www.aerc.nic.in) in downloadable format. A Public Notice was issued by APDCL
inviting objections/suggestions from stakeholders on or before May 15, 2015 which
was published in the following eleven (11) newspapers on April 23, 2015.
6
Name of newspapers Language
April 23, 2015
Amar Asom Assamese
Asamiya Pratidin Assamese
Dainik Janambhumi Assamese
Dainik Agradoot Assamese
The Assam Tribune English
The Sentinel English
Business Standard English
Dainik Jansankha Bengali
Samayik Prasanga Bengali
Sentinel Hindi
Purbanchal Prahari Hindi
1.5.6 APDCL further published a corrigendum on April 24, 2015, regarding rectification of
published “submission date of comments”, from May 11, 2015 to May 15, 2015 in the
following four (4) newspapers on April 24, 2015
Date Name of newspapers Language
April 24, 2015
Amar Asom Assamese
Asamiya Pratidin Assamese
Dainik Janambhumi Assamese
Dainik Agradoot Assamese
1.5.7 The Commission considered the objections received and sent communication to the
objectors to take part in the Hearing process for presenting their views in person
before the Commission. Accordingly, the Commission scheduled a Hearing in the
matter on June 04, 2015 at Guwahati. In this context, Notices were dispatched to the
objectors personally/by Registered Post stating the date and time of Hearing. Also, a
comprehensive Notice for Hearing was published in the following seven (7)
newspapers on May 27, 2015 in Assamese and English language. The Hearing was
held at the District Library Auditorium, Guwahati on June 04, 2015 as scheduled.
Date Name of Newspaper Language
27.05.2015
The Assam Tribune English
The Sentinel English
Amar Asom Assamese
7
Date Name of Newspaper Language
Asamiya Pratidin Assamese
Dainik Janambhumi Assamese
Dainik Jugasankha English
Purbanchal Prahari English
1.5.8 All the written representations submitted to the Commission and oral submissions
made before the Commission in the hearing and the responses of APDCL have been
carefully considered while issuing this Tariff Order. The major issues raised by
different consumers and consumer groups along with the response of APDCL and
views of the Commission are elaborated in Chapter 3 of this Order.
1.6 STATE ADVISORY COMMITTEE MEETING
A meeting of the State Advisory Committee (constituted under Section 87 of the Act)
was convened on May 8, 2015 at Assam Administrative Staff College, Khanapara,
Guwahati. The Members of SAC were briefed on the Petitions of APDCL. The
suggestions made by the members of SAC have been duly taken into consideration
by the Commission while finalizing the tariff order..The minutes of the meeting,
relating to APDCL Tariff Petition, is appended to this order as Annexure 1.
8
2. Summary of ARR and Tariff Petition
2.1 TRUE-UP FOR FY 2013-14, APR OF FY 2014-15 AND ARR FOR FY 2015-16
The APDCL filed the Petition for approval of truing up of FY 2013-14 (without the
audited accounts), APR of FY 2014-15 and ARR and tariff for FY 2015-16 (Petition
No. 3/2015) on January 31, 2015, under Section 62 of the Act‟03.However, APDCL
has submitted their Audited Statement of Accounts for FY 2013-14 later, on March
12, 2015.
2.2 SUMMARY OF THE PETITIONS
Summary of the Petitions filed by APDCL for truing-up for FY 2013-14, APR of FY
2014-15, and ARR & tariff determination for FY 2015-16, is shown in the Table
below:
Table 2.1: Summary of Truing Up for FY 2013-14 (Rs. Crore)
Particulars 2013-14 Revised Controll
able
Uncontr
ollable Approved Actual Claim
Cost of power purchase 2134.26 2670.05 2647.60 -513.34
Operation & Maintenance
Expenses 590.11 660.58 660.58 -70.47
Employee Cost 537.98 560.64
Repair & Maintenance 35.25 69.09
Administrative & General
Expenses 16.88 30.85
Depreciation 6.08 55.16 24.13 -18.05
Interest and Finance Charge 28.89 114.19 114.19 -85.30
Interest on Working Capital 27.05 28.26 -1.21
Other Debits - 4.15 4.15 -4.15
Interest on Consumer security
deposit 32.17 32.49 32.49 -0.32
Provision for Bad Debt - 41.14 41.14 -41.14
Net prior period expenses - (18.70) (18.70) 18.70
True Up adjustments 230.00 230.00 0.00
Others - 0.00 0.00
Other expenses Capitalised - - 0.00
9
Particulars 2013-14 Revised Controll
able
Uncontr
ollable Approved Actual Claim
Sub-total 3048.56 3559.07 3763.84 0.00 -715.28
Return on Equity 22.79 35.20 -12.41
Provision for tax/ tax paid - 0.00
Total Expenditure 3071.35 3559.07 3799.04 0.00 -727.69
Less: Non Tariff Income - 18.43 18.43 18.43
Aggregate Revenue
Requirements 3071.35 3540.63 3780.61 0.00 -709.26
Revenue with approved Tariff
including FPPPA 2603.54 2642.15 2642.15 38.61
Other Income (Consumer
Related) 203.50 205.33 205.33 1.83
Total Revenue Before Subsidy 2807.04 2847.49 2847.49 0.00 40.45
Targeted Subsidy 100.00 28.22 28.22 -71.78
Other subsidy 100.00 137.00 137.00 37.00
Total Revenue after subsidy 3012.71 3012.71 0.00 5.67
Total Claim -64.31 -527.93 -767.90 0.00 -703.59
It is to be noted that the above figure of "Revenue with approved Tariff including FPPPA" is not correctly reported by APDCL. The figure should be Rs. 2767.84 Crores instead of Rs. 2603.54, Crores as per the MYT Order dated November 21, 2013. As such, the "Total Claim" shall be NIL.
. Table 2.2: Annual Performance Review for FY 2014-15 (Rs. Crore)
Particulars FY 2014-15 Revised
Claim Contr-ollable
Uncont-rollable Approved Actual
Cost of power purchase 2652.46 2943.94 2943.94 -291.48
Operation & Maintenance Expenses 687.24 748.68 748.68 -61.44
Employee Cost 609.65 641.36
Repair & Maintenance 46.66 74.62
Administrative & General Expenses 30.93 32.70
Depreciation 7.85 56.82 31.25 -23.40
Interest and Finance Charge 8.70 150.59 150.59 -141.89
Interest on Working Capital 41.70 56.42 56.42 -14.72
Other Debits 7.25 7.25 -7.25
Interest on Consumer security deposit 4.92 48.34 48.34 -43.42
Provision for Bad Debts 0.00 0.00
Net prior period expenses 0.00
True up adj 553.18 553.18 553.18 0.00
Others 0.00 0.00
Other expenses Capitalised 0.00
Sub total 3956.05 4565.21 4539.64 0.00 -583.59
Return on Equity 22.79 35.20 35.20 -12.41
10
Particulars FY 2014-15 Revised
Claim Contr-ollable
Uncont-rollable Approved Actual
Provision for tax/ tax paid 0.00
Total Expenditure 3978.84 4600.42 4574.84 0.00 -596.00
Less Non Tariff Income 0.00 29.63 29.63 29.63
Aggregate Revenue Requirement 3978.84 4570.79 4545.21 0.00 -566.37
Revenue with approved Tariff 3241.26 2929.13 2929.13 -312.12
Recovery of FPPPA 84.63 84.63 84.63
Other Income (Consumer Related) 231.00 209.86 209.86 -21.14
Total Revenue Before Subsidy 3472.26 3223.62 3223.62 0.00 -248.64
Targeted subsidy 0 174.78 174.78 174.78
Other subsidy 81.64 81.64 81.64 0.00
Total Revenue after subsidy 3553.9 3480.04 3480.04 0.00 -73.86
Gap/surplus -424.94 -1090.75 -1065.17 0.0 -640.23
It is to be noted that the above figure of "Revenue with approved Tariff" is not correctly reported by APDCL. The figure should be Rs. 3666.19 Crores instead of Rs. 3241.26,Crores as per the Tariff Order dated November 21, 2014. As such, the Gap will be Rs. 100 Crores instead of Rs.424.94 Crores.
APDCL considered the following parameters for estimation of Revenue requirement of Rs.
4341.47 Crore for FY 2015-16, as shown in the Table below:
Table 2.3: Revenue Requirement for FY 2015-16
Sl. No. Particulars Amount
1 Approved ARR for FY 2015-16(Rs. Crore) 3312.56
2 Deficit in the approved ARR(Rs. Crore) 51.66
3 Net additional claim(Rs. Crore) 541.44
4 Add, regulatory asset created vide order dated 21.11.14(Rs. Crore) 100.00
5 Add, additional revenue consequent to revision vide order dated 21.11.14 as well as consideration of FPPPA @36 paisa per unit consequent to revision of gas price (Rs. Crore)
541.80
6 Total (Rs. Crore) 4547.47
7 Less, subsidy amount effective till November, 15 (Rs. Crore) 206.00
8 Net amount (Rs. Crore) 4341.47
Estimated sale of Energy (MU) 6115.53
9 Average Tariff (Rs./kWh) 7.10
APDCL proposed retail tariff for different category of consumers to recover the total ARR for
FY 2015-16, as projected by APDCL. It is to be noted that the ARR of FY 2015-16 as
proposed by APDCL, shown above, is exclusive of the impact of True-Up of FY 2013-14.
2.3 PRAYERS OF APDCL
APDCL, in its Petition, has prayed as under:
11
1. Approval of its Truing Up for FY 2013-14 on the basis of Audited Accounts as per
regulation.
2. To admit this petition of Annual Performance Review for FY 2014-15.
3. Approve the amount of revenue gap i.e. Rs. 714.09 Crore. (Rs. 424.94 Crore +Rs.
289.15 Crore)
4. To allow recovery of Revenue Gap for FY 2014-15 in addition to past period dues,
subject to truing up at the end of the period.
5. To grant any other relief as the Hon'ble Commission may consider appropriate.
6. Pass any other order as the Hon’ble Commission may deem fit and appropriate
under the circumstances of the case and in the interest of justice.
7. To approve revised Annual Revenue Requirement of FY 2015-16 based on amount
already approved vide Commission's order dated 21.11.2013.
8. To consider approved parameters/ARR of APGCL, AEGCL and SLDC while finalizing
tariff of APDCL.
9. To allow APDCL recovery of the proposed ARR by way of formulating suitable
revised retail tariff so as to accommodate recovery of fixed cost through fixed/
demand charge and variable cost through energy charge.
10. To grant any other relief as the Hon'ble Commission may consider appropriate.
11. Pass any other order as the Hon'ble Commission may deem fit and appropriate
under the circumstances of the case and in the interest of justice.
12
3. Summary of Objections raised, Responses of APDCL and Commission’s comments
The Commission has received fourteen (14) numbers of objections/suggestions on
the Petition filed by APDCL, from the following stakeholders:
Sr. No. Name of the Objector
1 All Assam SSI Association, Bamunimaidam
2 Assam Bidyut Grahak Adhikar Parishad
3 Assam Bought Leaf Tea Manufacturers‟ Association, Assam Tea Planters‟
Association & Bharatia Cha Parishad
4 Assam Branch, Indian Tea Association (ABITA), Guwahati
5 Cement Manufacturing Company Limited (Guwahati Grinding Unit)
6 Consumer Legal Protection Forum, Guwahati
7 Federation of Industry & Commerce of North Eastern Region (FINER)
8 Grahak Suraksha Sanstha, Guwahati
9 North Eastern Small Scale Industries Association (NESSIA), Guwahati
10 North Eastern Tea Association
11 Shri J.N. Khataniar
12 Shri. Jayanta Deka, Advocate and Others
13 The All India Manufacturers‟ Organization, Tinsukia
14 Krishak Mukti Sangram Samiti & Gana Mukti Sangram
APDCL has submitted its responses to the objections/suggestions from various
stakeholders.
The Commission considered the objections/suggestions received and notified the
objectors/respondents to take part in hearing process by presenting their views in
person before the Commission, if they so desired.
13
The Commission held the Hearing at District Library Auditorium, Guwahati on June
04, 2015. The objector(s) attended the hearings and submitted their
views/suggestions. All the written representations submitted to the Commission and
oral submissions made before the Commission during the Hearing and the responses
of APDCL have been carefully considered while issuing this Tariff Order.
The objections/suggestions made by the stakeholders and responses of the
Petitioner are briefly dealt with, in this Chapter. The major issues raised by different
consumers and consumer groups are discussed below along with the response of
APDCL and views of the Commission.
Some of the objections/suggestions are general in nature and some are specific to
the proposal submitted by APDCL for approval of ARR and Tariff revision. While all
the objections/suggestions have been given due consideration by the Commission,
only major responses/objections received related to the ARR and Tariff Petition and
also those raised during the Hearing have been grouped and addressed issue-wise
rather than objector-wise, in order to avoid repetition.
Issue No. 1: Sales
Objections:
ABITA, Cement Manufacturing Company Limited, FINER, Assam Bought Leaf Tea
Manufacturers‟ Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad have objected that the Average Monthly Sales to Jeevan Dhara Consumers
is higher than 30 Units, which is not correct as maximum consumption allowed under
this category is 30 Units/month. The objectors referred to earlier Tariff Order and
mentioned that the Commission used to shift any additional sales over and above 30
Units per month (for Jeevan Dhara) to Domestic-A category. ABITA requested the
Commission to undertake adequate check for approving the sales under this
category, while Cement Manufacturing Company Limited, FINER, Assam Bought
Leaf Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia
Cha Parishad have requested for prudence check of the representation of sales by
APDCL. It was also mentioned that sales projection for FY 2015-16 is on higher side
and requested the Commission to consider actual sales in each category for more
reliable estimation of sales rather than being guided by projections of APDCL.
14
ABITA has also objected that actual sales for various categories during normal, peak
and off peak hours has not been provided by APDCL. It was mentioned that these
are required to analyse the consumption & revenue during the normal, peak and off
peak periods.
Cement Manufacturing Company Limited, FINER, Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad referred to Regulation 128 of the AERC Tariff Regulations, 2006 and
mentioned that, as per this Regulation for Sales projection, the Licensee need to
submit last two years‟ actual monthly load curve and separately show the sales to
open access consumers, traders and other licensees, using the DISCOM‟s system. It
is further objected that APDCL‟s sales projection for FY 2015-16 has no correlation
with estimated sales for FY 2014-15 (which is based on partial actual and partial
projected sales). It is highlighted that APDCL has not revised the sales of HT
categories as against the over projection done in case of LT category. It is proposed
that sales projection for FY 2015-16 needs to be done based on actual sales for FY
2014-15 and CAGR during past years.
Response of APDCL:
APDCL submitted that substantial growth has occurred in the low end category of
consumers viz. Jeevan Dhara and Domestic-A with proper implementation of
RGGVY. It is mentioned that due to better power supply position, power consumption
has increased for the said category of consumers in last few years. APDCL further
submitted that as the sales to Jeevan Dhara category of consumers reflected for FY
2013-14 is as per the Audited Statement of Accounts and there is no scope of any
“alterations”.
Regarding RGGVY schemes‟ limit of 30 kWh/month consumption for Jeevan Dhara
consumers, APDCL clarified that if during any billing period the consumption exceeds
the stipulated 30 kWh/month (1 kWh/day for any month) the consumers will be
considered as if they have shifted to the next appropriate higher category i.e.
Domestic-A and accordingly, the consumer profile automatically gets shifted to the
respective category. However, on attainment of the stipulated limit in subsequent
billing cycle entitles the consumer to be billed in the lower tariff. APDCL submitted
that because of this dynamics of shifting, total consumers belonging to both Jeevan
Dhara and Domestic-A should be considered for correct assessment of the sales.
15
Regarding determination of sales for FY 2015-16, APDCL also submitted that the
basis of sales projection for FY 2015-16 is mentioned in the petition itself.
For data related to sales during normal, peak and off peak hours, APDCL submitted
that all the information as per the Regulation along with additional information as
sought by the Hon‟ble Commission has been submitted from time to time.
Comments of the Commission:
The objections of the respondents are noted. In this regard, the Commission had
given a directive to APDCL in the Tariff Order dated November 21, 2014, for carrying
out an audit of the consumption being recorded by the Jeevan Dhara category of
consumers. The Commission has observed that APDCL has not carried out any audit
in this regard. As such, APDCL is once again directed to carry out an audit to ensure
that the monthly limit for billing under Jeevan Dhara category is kept within 30 units,
as required. Further, the load survey being conducted by APDCL for RGGVY
consumers, would also enable APDCL to ascertain the correct consumption. As
such, this study should be expedited.
For sales estimation for FY 2014-15 and sales projection for FY 2015-16 for all
categories, the Commission has considered all the relevant aspects such as past
trend of consumer growth, addition in consumer categories etc. The details are
provided in the relevant Chapter of this order.
Issue No. 2: Distribution Losses
Objections:
ABITA presented a comparison of approved and actual Distribution Loss since FY
2007-08 till FY 2013-14 and mentioned that over the years APDCL has not been able
to meet the Distribution loss target. ABITA requested for submission of break-up of
total Distribution loss into system loss and loss on account of theft & pilferage along
with measures undertaken by APDCL to prevent theft of electricity. The objector
further submitted that the citing of addition of consumer due to RGGVY scheme as
reason for high Distribution loss by APDCL cannot be accepted because even after
implementation of RGGVY scheme, other states are able to reduce Distribution loss
in contrast to Assam. The objector further requested the Commission to approve T&D
losses at the same level as approved by the Commission in the MYT Order and
disallow the excess power purchase cost incurred by APDCL. ABITA,further
16
submitted that APDCL should submit the details of losses in past seven years vis a
vis investment made in upgradation of distribution system and an analysis of this data
will clearly indicate the failure on part of APDCL to reduce losses in spite of huge
investment.
Cement Manufacturing Company Limited, FINER, Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad have submitted that even though the Commission has been approving the
Distribution loss based on the principles of Abraham Committee, APDCL has not
been able to meet the target for Distribution loss reduction. The importance of
reduction in Distribution loss for reducing the cost of supply & in turn reducing the
level of cross subsidy has been highlighted. They also submitted that as
Capitalization for strengthening & upgradation of sub-transmission and distribution
works in several project areas of Assam under R-APDRP were allowed during the
MYT period, APDCL should have been able to reduce the Distribution loss level.
All India Manufacturers‟ Organization submitted that the Transmission and
Distribution losses are very high. It was further submitted that high T&D losses are
inconsistent with APDCL's claims of capital expenditure to upgrade the distribution
network and maintenance to meet the growing demands of consumers. The objector
submitted that APDCL needs to improve the transmission and distribution network
with latest technology, better skills and higher efficiency for drastically reducing
distribution losses, instead of passing on the cost of technical and staff inefficiencies
and low productivity to the consumers.
North Eastern Tea Association submitted that the Distribution losses are higher than
approved value and its responsibility lies with the petitioner.
Grahak Suraksha Sanstha has submitted that APDCL should improve its efficiency to
bring down the T&D loss to permissible limits. Further, it is submitted that with regard
to 100% metering of total sale of energy, it is observed that meters are not installed in
the households of some Government officers/qaurters and despite the reports that
some Government offices not paying electricity bills for five or six years, no action
has been taken by APDCL. Objector has requested APDCL to install prepaid meters
in all Government, commercial, industrial, agriculture and domestic consumers.
Further, the objector has submitted that as per APDCL, a new law for checking power
theft is being enacted, but APDCL has not clarified that when such law will be
17
enacted. It is also submitted that APDCL has not taken sufficient steps to check theft
and unlawful use of electricity.
North Eastern Small Scale Industries Association (NESSIA) has submitted that
Distribution loss appears to be on the higher side (26.59% against 21.6%) and this
should be reduced for balancing revenue losses. It is further submitted that
distribution loss in other States is 13.5%.
Assam Bidyut Grahak Adhikar Parishad submitted that the actual T&D loss of Assam
for FY 2013-14 is 29% as compared to 24% during FY 2010-11 (as per the Planning
Commission report for FY 2010-11). It is highlighted that the T&D loss are also high
compared to other states as per the Planning Commission report. It is further
submitted that even after large amount of investment under various Central schemes
and Government subsidy, APDCL has not been able to reduce the losses in that
proportion.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram submitted that APDCL is not
able to achieve the targeted loss level. It is highlighted that as per FY 2013-14
Planning Commission report, the T & D loss for Assam is substantially high as
compared to other states. It is submitted that the high T & D loss is the main reason
for increase in Tariff and therefore passing on the cost of this loss without taking
steps for reduction in losses is not justified. The objector demanded that, till the time
the T&D loss is reduced to 15%, Tariff increase should not be allowed.
Response of APDCL:
APDCL, in its response to comments of objectors presented a comparison of Actual
and Approved Distribution loss and mentioned that APDCL was able to reduce the
loss level almost to the approved level by FY 2008-09. However, due to various
uncontrollable factors, it was not possible to sustain reduction in loss. APDCL
submitted that due to the following principal factors, the utility is not able to achieve
the desired reduction in loss:
Inadequate resources due to inadequate tariff (except the post-facto recovery of
only current power purchase cost by virtue of FPPPA mechanism for subsequent
periods) coupled with substantial increase in fuel price, retrospective revision of
tariff for CPSU generators has forced APDCL to reduce investment in R&M.
18
Manifold increase in BPL consumers at low voltage level with highest losses after
implementation of Government of India‟s flagship program RGGVY. Total number
of BPL consumers as on today stands at more than 14 lakhs against only 78000
at the beginning of FY 2008-09.
APDCL submitted that over the past years due to delay in passing of Tariff Order
there was lower liquidity and due to this, they are not able to take up adequate R & M
work, for reduction of loss.
APDCL also referred to National Tariff Policy regarding allowance for necessary and
reasonable O&M for reduction of loss.
APDCL mentioned that only after allowance for recovery of past gap in the tariff for
FY 2013-14, the liquidity of APDCL for R&M expenditure has increased resulting in
significant loss reduction during FY 2014-15 as compared to FY 2013-14.
In response to comments of North Eastern Small Scale Industries Association
(NESSIA) and All India Manufacturers‟ Organisation, APDCL submitted that due to
various measures undertaken by APDCL, the Distribution Loss has come down by
3% to 20.8% in FY 2014-15 and which is expected to reduce further in coming years.
In response to the comments of Grahak Suraksha Sanstha (GSS), APDCL submitted
that the replacement of the stopped/defective meters of all Government departments
is complete. APDCL further mentioned that the Government has cleared the
outstanding past dues and monthly bills are being raised against all the Government
connections similar to other consumers. Regarding enactment of new law to check
power theft, APDCL submitted that the matter is pending with Government of Assam.
APDCL also submitted that to arrest theft the vigilance wing of APDCL has been
strengthened and massive disconnection drive, anti-theft drives and load surveys are
being carried out. APDCL further submitted that the utility is conducting load survey
of the RGGVY consumers to ascertain the actual connected load. However, APDCL
is facing difficulty in checking the entire rural consumer load due to lack of
infrastructure and remoteness of the places, and hence, APDCL has introduced
franchisee system by involving local users committee for the job.
In response to comments of Krishak Mukti Sangram Samiti & Gana Mukti Sangram
on comparatively high level of Distribution loss in Assam, APDCL submitted that
higher LT sales in Assam as compared to other states is the main reason for the high
Distribution loss level. In this regard, APDCL submitted that as per PFC report for FY
2011-12, the Domestic consumption contribute 36.14% in Assam as against 24.64%
19
in Punjab, 14.13% in Gujarat, 17.98% in Karnataka and 24.71% in Andhra Pradesh
out of total sales, whereas, the Industrial & Commercial consumption contributes
35.63% in Assam as against Industrial consumption of 40.27% in Punjab, 43.52% in
Gujarat, 29.25% in Karnataka, 37.94% in Andhra Pradesh. APDCL further submitted
that due to various measures undertaken by APDCL, the Distribution Loss is
expected to come down by 3% to 20.8% in FY 2014-15 and with completion of
different ongoing projects the Distribution Loss level is expected to come down
further. APDCL mentioned that they have set end of FY 2018-19 as the target for
bringing down the Distribution loss to 15% level.
In response to comments of Assam Bidyut Grahak Adhikar Parishad, APDCL
submitted that the T & D loss for FY 2013-14 is as per actual Energy Balance.
APDCL clarified that actual Distribution loss for FY 2010-11 was 25.44% and for FY
2014-15 it is expected to be 20.16%.
In response to comment of North Eastern Tea Association, APDCL submitted that
apart from law & order situation, the natural calamity and various other factors are
responsible for high distribution losses.
Comments of the Commission:
The high Distribution losses of the Distribution Licensee have always been a cause of
concern to the Commission and accordingly, several Directives have been issued
from time to time to restrict the Distribution losses. These include strengthening of the
Distribution system, improvement in the HT:LT ratio, elimination of theft of electricity,
and improvement in billing efficiency through introduction of prepaid meters, spot
billing, MRI downloads for all HT and high value consumers, etc. However, the
Commission is of the opinion that APDCL will have to make further conscious efforts
to reduce the Distribution Losses from the existing levels.. For the purpose of truing
up for FY 2013-14, the Commission has considered the Distribution losses at the
same level as approved by the Commission in the MYT Order and has disallowed the
excess power purchase cost incurred by APDCL on account of the actual distribution
losses being higher than the approved distribution losses.
For APR of FY 2014-15 also, the Commission has considered the distribution losses
approved in the Tariff Order dated November 21, 2014 and for ARR for FY 2015-16,
the Commission has retained the distribution loss levels at the same level as that
20
approved for FY 2015-16 in MYT order dated November 21, 2013.,for the purpose of
calculating the energy requirement and the power purchase expenses.
Thus, it is clarified that the cost of the excess Distribution Loss over the targeted
Distribution Loss is not passed on to the consumers, and have to be borne by
APDCL itself.
Issue No.3: Power Purchase
Objections:
ABITA, FINER, Cement Manufacturing Company Limited and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that the additional power purchase cost due to higher losses
should be considered as controllable and should be disallowed. Also, ABITA has
pointed out that APDCL‟s claim of Rs. 39.68 Crore in FY 2013-14, against wheeling
and SLDC charges should be disallowed as details with respect to such provision has
not been submitted. ABITA further submitted that in the Tariff Order for FY 2014-15,
while approving the power purchase cost the impact of increase in gas price was
already factored in. Therefore, APDCL‟s claim for further 36 paise increase during FY
2014-15 due to change in gas price should not be considered. ABITA requested
Commission to consider the actual power purchase cost of FY 2014-15 as base and
a nominal 5% increase for projection of FY 2015-16 costs. ABITA submitted that they
have arrived at 5 % rate on basis of review of the overall average cost of power
purchase during FY 2013-14 and estimation of APDCL for FY 2014-15.
Further Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that APDCL‟s consideration of change in Gas price from $4.2 to
$5.61 per mmbtu as the reason for increase in power purchase cost for FY 2015-16,
is not correct. They submitted that from 01.04.15, the Gas price has fallen to $5.02
from $5.51 per mmbtu and requested Commission to undertake prudent check
(especially for Central Generating Stations) for approving power purchase cost of FY
2015-16.
All India Manufacturers‟ Organization, Assam, submitted that the cost of Power
Purchase is very uncertain and unreliable. They further submitted that as there is
21
insufficient own generation, to meet the future load growth and keep power purchase
cost under control, it requested APDCL to undertake collaborative arrangements by
entering long term Power Purchase Agreement.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram submitted that the main
reason for increase in Tariff is high cost of power purchase, and in Assam about 81%
of the total cost is power purchase as against all India average of 76.1%.They further
submitted that, for FY 2015-16,APDCL has proposed Rs. 3.71/unit as power
purchase cost as against the existing approved power purchase cost of Rs. 3.21/unit
The example of Odisha was cited by them, where Odisha Electricity Regulatory
Commission did not allow Tariff increase for FY 2013-14 on the basis that there was
option of power purchase from other alternate low cost sources rather than
purchasing from the existing high cost sources. They further submitted that even with
Commissioning of Lower Subansiri Hydro Electric Project, the average power
purchase cost is not expected to reduce as the expected per unit cost of Lower
Subansiri project is Rs 5.47 per unit which is comparatively higher than the approved
average power purchase cost considering all the sources i.e. Rs. 3.79/unit.
Assam Bidyut Grahak Adhikar Parishad submitted that over the years the major
quantum of power is being purchased from outside sources due to lower generation
from APGCL stations.
Response of APDCL:
In response to comments of objectors, APDCL submitted that Power purchase cost is
an uncontrollable expense. APDCL referred to Clause 8.2.1 (1) of the National Tariff
Policy and requested Commission to allow recovery of total Power Purchase cost at
achieved loss level.
APDCL further submitted that, it has been procuring power from the allocated
sources viz. State Sector Generators (tariff governed by AERC), Central Sector
Generators (tariff governed by CERC),along with from other sources adhering to
directives from Ministry of Power vis-à-vis AERC. APDCL clarified that it has neither
violated the Merit Order principle of Power Purchase nor procured power at
unreasonable higher rates.
22
Regarding the approved cost of Power Purchase for FY 2014-15, APDCL clarified
that the approved Power Purchase cost is exclusive of any increase in gas price after
November, 2014 and as such, consideration of the impact of gas price revision is not
double counting. APDCL also submitted there is no FPPPA charge at present.
Regarding Power Purchase cost projection for FY 2015-16, APDCL submitted that it
has projected average rate for purchase of power during FY 2015-16 at Rs. 3.74/kWh
against estimated rate of Rs. 3.33/kWh during FY 2014-15. APDCL mentioned that
the proposed increase of 41 paisa per unit is after factorization of 36 paisa on
account of gas price hike.
Further, in response to ABITA‟s query on inclusion of additional amounts under
wheeling and SLDC charges for FY 2013-14, APDCL submitted that necessary
explanations has been provided in the Tariff Petition.
In response to Comments of All India Manufactures Organisation, Assam, APDCL
submitted necessary efforts are being made to ensure reliable supply of power at
reasonable rates. APDCL also submitted that arrangements for contracts in this
regard have been done.
In response to Comments of Krishak Mukti Sangram Samiti & Gana Mukti Sangram,
APDCL submitted that the increase in Power Purchase cost is due to increase in the
Fuel cost. APDCL mentioned that it tries to purchase power from the cheapest
sources available. However, being a Distribution Licensee it has to purchase power
from various sources like NEEPCO, NHPC, NTPC and state generators.
Comments of the Commission:
The clause 8.2.1 of the Tariff Policy notified by the Ministry of Power, Government of
India stipulates as under:
"Actual level of retail sales should be grossed up by normative level of T&D losses as
indicated in MYT trajectory for allowing power purchase cost subject to justifiable
power purchase mix variation..."
There are also several Judgments of the Hon'ble Appellate Tribunal for Electricity
(APTEL), which clearly rule that the cost of additional power purchase on account of
excess distribution losses has to be disallowed, and the consumers cannot be asked
to bear the burden of the excess distribution losses.
23
Thus, it is clarified that the cost of the excess Distribution Loss over the approved
Distribution Loss are not passed on to the consumers, and have to be borne by
APDCL itself. APDCL has to take strenuous efforts to reduce the Distribution Loss, in
order to ensure that it is able to recover the entire power purchase cost incurred by it.
With regard to maintaining of merit order dispatch, it has to be noted that currently
Assam is a power deficit state and power from APGCL sources and all allocated
Central Sector Generating sources are purchased to the maximum possible extent.
Any additional requirement of power is met through purchase from Short
Term/Medium Term arrangements such as Bilateral Trading, Power Exchange etc.
However, there is scope for optimisation of Power Purchase through proper
management of Power Purchase and Sale. The necessary directive regarding
submission of reports have been issued by the Commission, in this regard.
Issue No. 4: FPPPA
Objections:
All India Manufacturers‟ Organization, Assam, submitted that as there is already
FPPPA formula notified by the Commission, to take care of variation in the fuel cost
component (which is the main component of cost), the variation due to change in
costs on other heads, direct or indirect, should be minimal. They further submitted
that, as the present applicable Tariff is inclusive of 36 paise/unit for Fuel increment,
no further increase due to Fuel price should be allowed.
North Eastern Tea Association submitted that as there is FPPPA formula in place to
compensate for fluctuation in fuel cost, no further rise in tariff should be allowed.
Response of APDCL:
APDCL has submitted that at present no FPPPA is being claimed by APDCL.
Comments of the Commission:
The Commission has noted the objection and the response of APDCL in this matter.
While approving the power purchase cost in the Tariff Order, the Commission has
carried out due prudence check, as detailed in the relevant section of the Order.
24
Issue No. 5: Operation and Maintenance (O&M) Expenses
Objections:
ABITA, Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that O&M Expenses are controllable expenses and should be
allowed at the approved level only and not on the basis of actuals. ABITA further
submitted that claiming of O&M as per actual in each year is not in line with the MYT
framework. The objectors requested the Hon‟ble Commission to approve the O & M
Expense for FY 2013-14 at level of APR of FY 2013-14 as approved in the Tariff
Order for FY 2014-15. For approval of O & M Expense for FY 2014-15 and FY 2015-
16, they requested to apply CPI & WPI increase over FY 2013-14.
Further, ABITA requested the Commission to direct APDCL for submission of details
of incidental charges and supervision charges collected for past seven years and the
details of accounting of such income.
North Eastern Tea Association submitted that Employee cost can be reduced with
the implementation of computer and new technology.
All India Manufacturers‟ Organization, Assam submitted that APDCL‟s approach of
projecting drastically high O&M expense just by taking increase of 13.21% over the
approved amount is not technical. They requested Commission to conduct prudent
check in this matter.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram submitted that, O&M
Expense of Assam as percentage of total cost is 1.3%, same as all India average;
however, it is high in comparison to other states like Haryana, Karnataka, Gujarat,
Tamil Nadu, MP and Rajasthan. They further submitted that Establishment &
Administrative Expense of Assam is 17.8% of total expense for FY 2011-12 as
compared to all India average of 9.7%. They cited that Establishment &
Administrative Expense as a percentage of total cost in Delhi is the lowest at 4.4%,
4.6% in UP, 5.6% in Uttarakhand, 5.9% in Haryana and 6 % in Gujarat. For this
excessive expense, they requested the Commission to conduct prudent check.
They further submitted that even with maximum employee strength as compared to
major states of the country, APDCL is not able to provide proper service. They cited
25
that as against the all India employee Average of 1.12 person/million unit sale, .in
Assam is 2.57. They requested the Commission to direct APDCL for providing better
service to the consumers.
Response of APDCL:
In response to comments of objectors, APDCL submitted that the components of
O&M Expenses are linked to inflation and addition of assets.
APDCL stressed that the actual employee cost of APDCL for FY 2013-14 is lower
than that considered by the Commission in the review for FY 2013-14. APDCL
submitted that the Employee cost for FY 2014-15 & FY 2015-16 is expected to
increase due to new recruits for maintaining new asset addition, DA increase,
terminal benefit etc.
Regarding A&G Expense of FY 2013-14, APDCL submitted that A & G Expense is
marginally higher than the amount considered in the performance review.
Regarding R&M Expenditure, APDCL accepted that R & M Expense has increased
significantly. However, APDCL claimed that additional infusion in R&M has yielded
reduction in Distribution losses during FY 2014-15.
APDCL referred to Clause 8.2.1(1) of the National Tariff Policy with regard to allowing
necessary O & M Expense.
In response to comments of Krishak Mukti Sangram Samiti & Gana Mukti Sangram ,
APDCL submitted that energy of 5965 MU handled by APDCL was very much lower
as against 31654 MU in Delhi, 28395 MU in Haryana, 67145 MU in Gujarat, 48322
MU in Karnataka, 43836 MU in Tamil Nadu and 44983 MU in Rajasthan for FY 2011-
12 as per PFC report. APDCL further submitted that, as it is having much lesser
number of Industrial consumers compared to Delhi, Haryana, Gujarat, Karnataka,
Tamil Nadu & Rajasthan and scattered high number of rural consumers due to
diverse demographic & geographical condition of Assam, the requirement of higher
number of employees became inevitable and given rise to high number of
employees/unit sale in Assam. Regarding comment of high Establishment and
Administrative Expense, APDCL submitted that, to cater diverse remote rural
consumers & maintain the widespread network, APDCL has to set up & maintain
26
number of offices and establishments in remote areas, leading to increase in
Establishment and Administrative Expense.
Comments of the Commission:
The Commission has noted the objections and APDCL‟s reply. The O&M Expenses
for FY 2013-14 have been approved after conducting prudence check and increase
over past years. For APR and ARR, the O&M Expense has been approved after
applying appropriate growth rate over approved Expense for FY 2013-14. The details
may be seen in the respective chapters of this Order.
With regard to employee strength, the Commission is of the view that the employee
cost can be optimized by proper manpower planning and capacity building initiatives.
The Commission has given necessary directives to APDCL in this regard.
Issue No. 6: Capital Expenditure
Objections:
ABITA submitted that, APDCL has not provided scheme wise details of Capital
Expenditure for FY 2013-14 & FY 2014-15. They further mentioned that even after
direction of the Commission, APDCL has not provided any details of schemes
capitalised and their funding pattern. ABITA requested the Commission to seek the
details from APDCL.
Response of APDCL:
APDCL has submitted that all relevant data has been submitted to the Commission.
Comments of the Commission:
The objection is noted and the capital expenditure plan along with details of funding
and capitalisation schedule were scrutinised for allowing Capital Expenditure.
Issue No. 7: Depreciation
Objections:
ABITA submitted that, APDCL has not considered grant portion of opening balance of
GFA, transferred at the time of unbundling increasing the Depreciation claim.
27
Regarding claim of Depreciation for FY 2013-14, ABITA pointed out that the as actual
GFA addition is same as GFA addition considered by the Commission for APR of FY
2013-14 in the Tariff Order of FY 2014-15, the Commission should keep the
Depreciation for FY 2013-14 at the APR level. Further, ABITA submitted that more
than 70% of GFA addition during FY 2014-15 is from consumer contribution &
deposit works and hence depreciation claim on the same should be disallowed. They
also requested the Commission for conducting due diligence before approving the
Depreciation for FY 2014-15. Regarding Depreciation for FY 2015-16, ABITA
submitted that the claimed Depreciation is much higher as compared to approved
and impact of consumer contribution should be factored in while computing
Depreciation.
All India Manufacturers‟ Organization, Assam submitted that APDCL‟s proposal of
Depreciation has increased by more than double whereas it should show decreasing
trend as per normal business practice
All India Manufacturers‟ Organization and North Eastern Tea Association submitted
that Depreciation should show decreasing trend year on year as against APDCL‟s
proposal of increase in Depreciation.
Response of APDCL:
In response to the comments of ABITA, APDCL submitted that, "as no funding
through grant for Fixed Assets vis-à-vis CWIP vested to APDCL vide to unbundling
of erstwhile ASEB as on 1st April, 2005, no grant was considered for the opening
GFA part."
Regarding the GFA amount of FY 2013-14 in current true-up petition and APR,
APDCL submitted that at the time of Tariff Order for FY 2014-15, APDCL had
submitted Audited Statement of Accounts pending Audit report from CAG and hence,
the amount are same. APDCL has further clarified that, no Depreciation on assets
out of consumer contribution has been claimed by APDCL for FY 2014-15.
In response to comments of All India Manufacturers‟ Organization, Assam and North
Eastern Tea Association, APDCL submitted that, Depreciation is a gradually
decreasing component with the age of the asset. However, with increase in the asset
base, the amount is subject to increase in totality.
28
Comments of the Commission:
The Depreciation has been allowed as per the AERC Tariff Regulations, 2006. It is
clarified that depreciation may reduce over the years only if there is no addition of
assets, however, with the addition of assets on a regular basis, the depreciation
amount will generally increase over the years.
Issue No. 8: Return on Equity
Objections:
ABITA submitted that, APDCL has claimed RoE including the Equity Capital of
ASEB. They submitted that as for Trading function there is no requirement of any
asset or corresponding Equity. ABITA further submitted that due to non-performance
with regards to reduction in T & D loss, RoE should not be allowed for FY 2013-14 &
FY 2014-15. Further ABITA submitted that RoE should not be allowed for FY 2015-
16 because of non-performance and non-compliance of different Directives of the
Commission.
Cement Manufacturing Company Limited, FINER and Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad referred to AERC Tariff Regulations, 2006 and submitted that as there is no
new capitalization of asset created through Equity, increase in RoE should not be
allowed.
Response of APDCL:
APDCL submitted that, by virtue of the transfer scheme pursuant to the merger of
Discoms and transfer of trading function from erstwhile ASEB, the Equity Capital was
vested with APDCL and the same is reflected as “Share application money pending
allotment” in Note No. 2.03 of the Annual Statement of Accounts. APDCL mentioned
that such amount forms part of the equity of the utility and thus the utility is entitled for
return on the same as per Regulation.
Comments of the Commission:
The Commission has allowed the Return on Equity as per the AERC Tariff
Regulations, 2006. Regarding non-achievement of the targeted Distribution losses, it
29
is ensured that the cost of the excess Distribution losses is not passed on to the
consumers. The details may be seen in the respective chapters of this Order.
Issue No. 9: Provision for Bad Debts and other Debits
Objections:
ABITA, Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that the AERC Tariff Regulations, 2006 do not provide for any
provision of bad debtors or for other debits and hence Commission should not allow
amounts claimed by APDCL towards bad and doubtful debts.
Response of APDCL:
In response to comments of objectors, APDCL submitted that for FY 2013-14, Bad
and Doubtful is claimed as per Audited Statement of Accounts and for FY 2014-15 &
FY 2015-16 it is claimed as per AERC Tariff Regulations, 2006 providing for bad
debt.
APDCL further submitted that Bad & Doubtful Debts are directly proportional to the
amount of sales.
Comments of the Commission:
The Commission has adopted a consistent approach similar to previous years, while
approving provision for bad debts and other debits, the details may be seen in the
respective chapters of this Order.
Issue No.10 : Interest and Finance Charges
Objections:
ABITA, Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishadhave submitted that in the Tariff Order of FY 2014-15, the Hon‟ble
Commission has not allowed interest on GPF funds. Also, the objectors submitted
that the interest on opening balance of state Government loans was disallowed on
account of failure on part of APDCL to provide necessary supporting documents
showing that these loans were taken for capital purpose. The objectors further
30
submitted that, APDCL has not provided any supporting documents in this tariff
petition also, to show that state Government loans were taken for capital expenditure
purpose, and hence, the interest on State Government Loan, GPF and ASE bonds
should be disallowed.
Cement Manufacturing Company Limited, FINER and Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad have further submitted that APDCL has claimed interest and finance
charges which is not linked to gross fixed asset and is a deviation from principle laid
down in the tariff regulation.
All India Manufacturers‟ Organization submitted that in the current regime, automatic
and mechanical increase of interest and finance charges every year is not justified
and needs to be properly adjusted. They submitted that APDCL should have
commercial transactions with banks and keep such costs low and under control.
North Eastern Tea Association submitted that the interest rates are high looking at
the competition in the banking sector. Objector further submitted that this high
interest rate shows that the management of APDCL is lenient and is passing on the
burden of their inefficiency to the consumers.
Response of APDCL:
APDCL has submitted that the estimation of interest and finance charges has been
done in adherence to AERC regulations and detailed justification has been provided
in the petition. APDCL further submitted that APDCL being a Government owned
distribution utility, the source of funding for various projects is fixed by Government of
India and APDCL has not borrowed any additional fund from any other sources.
Comments of the Commission:
The Commission has computed the interest and finance charges, in accordance with
the AERC Tariff Regulations, 2006. The details are elaborated in respective chapter
of this order.
Issue No.11: Interest on Working Capital
Objections:
31
Cement Manufacturing Company Limited, FINER and Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that APDCL is charging rate of interest on working capital
computed at the PLR rate of SBI as on 1st April of the financial year. The objectors
submitted that, SBI has stopped issuing PLR since August 2011 and all
banks(including SBI) have shifted to advance rate/base rate regime and hence
linkage should be made to some other parameters.
All India Manufacturers‟ Organization submitted that, for FY 2015-16, Interest on
Working Capital has been determined on total working capital without deduction of
consumer security deposit. Further, they submitted that for cost of funding, APDCL
should disclose actual amount of interest paid by it rather than using SBI PLR.
Response of APDCL:
APDCL submitted that in absence of any updated regulation pursuant to change in
bank policy, APDCL has considered PLR @ 14.75% as approved in tariff order dated
November 21, 2014.
With regard to objection of All India Manufacturers‟ Organization, APDCL has
submitted that the amount of consumer security deposit is adjusted in the calculation
of working capital. APDCL further submitted that APDCL has not claimed any cost of
funding in the petition for FY 2015-16.
Comments of the Commission:
The Commission has noted the objections and reply of APDCL.
The Commission has computed the working capital requirement and interest thereon
on a normative basis, in accordance with the AERC Tariff Regulations, 2006. The
details are elaborated in respective chapters of this order.
Issue No. 12: Interest on Security Deposit
Objections:
North Eastern Tea Association, All Assam SSI Association and Grahak Suraksha
Sanstha have submitted that APDCL does not adjust the interest payable to
consumers on security deposit.
32
All India Manufacturers‟ Organization and North Eastern Tea Association submitted
that payment or adjustment of interest on security deposit is not transparent. All India
Manufacturers‟ Organization further submitted that the process of calculation of
interest on security deposit for adjustment in bill has several issues like, APDCL asks
for old receipts before any interest refund, adjustments are shown in the monthly bills
without showing the corresponding details of interest amount due, period, income tax
deduction etc. The objector requested the Commission to formulate a simple and
transparent mechanism for payment or adjustment of interest due.
Response of APDCL:
APDCL submitted that, APDCL could not provide the interests on security deposits to
LT category of consumers as the calculations involved huge manpower. However,
APDCL now has developed a software for that which has been integrated with both
CBS and SAP billing software. APDCL has submitted that post implementation of this
software, APDCL has been paying interests by way of adjustment in energy bills.
Comments of the Commission:
APDCL has to ensure that the interest on consumer security deposit is actually paid
to the consumers, in accordance with the Supply Code.
Issue No. 13: Revenue from sale of power
Objections:
ABITA submitted that average revenue realisation of FY 2014-15 is lesser than that
of FY 2013-14 and accordingly ABITA has requested the Commission to consider the
revised tariff of FY 2014-15 for calculation of revenue. Further, ABITA submitted that
average revenue from sale of power for FY 2015-16 is only Rs. 6.22 per unit as
against approved average realisation of Rs. 7.02 per unit. Thus, ABITA claimed that
APDCL is understating the total revenue from sale of power and requested the
Commission that revenue should be considered at the average of Rs. 7.02 per unit
only. ABITA further requested the Commission to undertake the prudence check of
revenue estimate of APDCL. Also, ABITA has sought details of category wise
collection of fixed and energy charges in last seven years.
33
ABITA has further submitted that APDCL has projected the revenue from sale of
surplus power from OTPC Unit-2 and NTPC BTPP, however the surplus power
projected by APDCL is low due to higher sales figure and higher losses of APDCL
than approved. ABITA submitted that by doing this APDCL is understating the
revenue and requested the Hon‟ble Commission to relook the power purchase
projections of APDCL.
ABITA has further submitted that the Commission should consider average tariff of
Domestic-A category for any sales to Jeevan Dhara over and above 30 units and the
same will translate into additional sales revenue which has been not recovered due
to negligence of APDCL. Accordingly, ABITA claimed that the total revenue from sale
of power for 2013-14 and for FY 2014-15 should increase.
ABITA further submitted that based on the revised calculation of ABITA, the revenue
gap is lower than the revenue gap estimated by APDCL for FY 2013-14 and FY
2014-15 and for FY 2015-16 ABITA‟s projections shows a revenue surplus. ABITA
further submitted that revenue gap for FY 2014-15 is only provisional and not based
on Audited Statement of Accounts and requested the Commission to not consider the
same in this tariff order.
ABITA also submitted that delay on account of APDCL in filing tariff, delays the tariff
determination which in turn does not allow full year window for recovery of revenue at
revised tariff, shifting the liability to next financial year and in the process increasing
the revenue gap during next tariff period.
All India Manufacturers‟ Organization, Assam submitted that the recovery of gap of
Rs. 51.66 Crore is retrospective in nature and should not be allowed.
Response of APDCL:
The Govt. of Assam has provided “Targeted subsidy” to some category of
consumers from the date of effectiveness of tariff for FY 2013-14 i.e. 1st December,
2013. Accordingly, amount to the extent of subsidy is booked under subsidy. As the
targeted subsidy is effective for only 4 months of FY 13-14, the extent of targeted
subsidy is much more in FY 14-15 leading to lesser realization from sale of power
(excluding subsidy) as compared to FY 13-14.
34
With regard to sale of surplus power, APDCL has submitted that, the periodical
surplus power estimated by APDCL is with due consideration of the actual loss.
APDCL further submitted that it has been able to sustain the reducing trend of loss
level against various odds barring certain factors beyond the control of APDCL and
hence APDCL requested the Commission to approve the projections of APDCL.
In response to objection of All India Manufacturers‟ Organization, APDCL replied that
the deficit of Rs. 51.66 Crore pertaining to FY 2015-16 is already included in the MYT
order for 2013-16 dated 21.11.2013 and the hence the deficit already recognized in
the ARR for FY 2015-16 vide previous order is claimed in the petition.
Comments of the Commission:
For calculating revenue from existing tariff for FY 2015-16, for arriving at the gap in
ARR, Commission has considered revised tariff of FY 2014-15 as approved in tariff
order dated November 21, 2014. For True-up of FY 2013-14, the revenue has been
taken from Audited Statement of Accounts. For APR of FY 2014-15, revenue has
been considered based on submission of APDCL and any deviation in the same shall
be duly trued-up. The details are elaborated in respective chapters of this order.
Issue No. 14: Recovery of Arrear
Objections:
ABITA, FINER and Assam Bought Leaf Tea Manufacturer‟s Association, Assam Tea
Planters‟ Association & Bharatia Cha Parishad, North Easter Tea Association and All
Assam SSI Association submitted that the inefficiency of APDCL for collection should
not be passed on to the regular paying consumers.
North Eastern Tea Association has submitted that recovery of long pending energy
charges will lower the interest burden and hence will lower the cost of power and
hence, APDCL should make action plan for recovery of old dues.They further
submitted that increasing trend of old dues shows the inefficiency of APDCL and
hence such cost should not be passed on to the consumers.
Shri J.N. Khataniar submitted that, in the Tariff Order for the Control Period from FY
2013-14 to FY 2015-16, the Commission had issued a directive to APDCL on
recovery of past dues. Accordingly he requested for the department wise details
35
pending dues for state Government consumers. Further he submitted that the details
of circle-wise pending past dues of the consumers till March 2015 may be furnished
along with the details of initiatives taken by APDCL for recovery of old dues.
.
Shri Khataniar further enquired the reasons for which APDCL has not disconnected
the Government defaulters and has delayed the installation of prepaid meters in
Government installations as per AERC directive. Shri Khataniar and NESSIA also
objected the delay in realisation of outstanding bill from Government consumers. Shri
Khataniar requested the Commission to intervene into this matter and help APDCL in
taking necessary steps. He further submitted that the Companies must be penalized
as per provisions of the Act‟03, for non-compliance of the directive of the
Commission.
Response of APDCL:
APDCL, in response to the objections, submitted that APDCL has already taken up
various steps and has prepared plan for recovery of old dues. APDCL further
submitted that the Government has cleared most of its outstanding dues and there
are outstanding dues of only Rs 21 Crore as on March 31, 2015, for which the
Government is expected to clear the dues soon.
As requested by objector, APDCL has submitted the Circle wise statement of
outstanding dues of consumers up to March 31, 2015. APDCL further submitted
details of various measures taken by APDCL to recover all pending dues which are
as follows:
i. Special revenue recovery drives are held to ensure timely disconnection of
defaulting consumers.
ii. Disconnected consumers are monitored vigilantly after disconnection.
iii. Temporary Disconnected consumers are permanently disconnected if the
payment is not made within the time as per APDCL norms.
iv. Legal action (pleaders‟ notice, Money suit) is initiated against permanently
disconnected consumers.
v. All consumers are served up to date Bill for payment.
vi. Various surcharge waiver schemes are implemented from time to time to
provide consumers a chance to clear the outstanding arrears.
In response to objections of Shri Khataniar, APDCL submitted that, 21,000 prepaid
meters have been procured for installation in Government establishments. APDCL
36
further submitted that the installation process of these meters has already started
which was earlier delayed due to delay in finalization of tender for procurement of
meters and allocation of department wise budget by the State Government for
payment of electricity bill.
Comments of the Commission:
The Commission has noted the objection and APDCL‟s reply in this regard. APDCL
should ensure that all the past dues are collected using a systematic approach, from
all consumers, irrespective of whether they are Government departments or
individual consumers. The recovery of past dues will help to improve the cash flow of
APDCL. However, this will not reduce the revenue gap of previous years or ensuing
years, since the revenue for the previous periods has been considered on accrual
basis, and is not dependent on the actual amounts collected by APDCL. Thus, it is
clarified that the recovery of outstanding arrears, will not result in reduction of the
revenue gap.
Issue No.15: Financial Support from the Government
Objections:
North Eastern Small Scale Industries Association submitted that APDCL and the
Commission should insist upon Government of Assam for providing additional
funding as grant to bail out APDCL.
Shri J.N. Khataniar submitted that various State Governments are providing
subsidies to enhance the performance of utilities. He enquired about the amount of
subsidies being prayed for and approved by the State Government during the last
five financial years.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram have submitted that, the
Subsidy of Rs. 206 Cr released by Government of Assam to power sector is still lying
with the Companies and the said subsidy is applicable till November 2015. The
objectors submitted that even after subsidy being in place, the demand for increase
in per unit Tariff from 702 paise to 710 paise is not just. They also submitted that in
comparison to other large states of India the subsidy amount provided by
Government of Assam is very low, thereby imposing entire burden on the consumers.
37
Response of APDCL:
APDCL submitted that it is expected that like the previous years, State Government
will provide subsidy to the weaker categories of consumers. In response to the
objections of Shri J.N. Khataniar, APDCL has submitted the details of subsidy
received from Government of Assam and subsidy booked for last five years.
In response to objection of Krishak Mukti Sangram Samiti & Gana Mukti Sangram
APDCL submitted that any subsidy provided by Government will be accounted for
and the benefit will be passed on to the consumers. APDCL further submitted that
1.16% proposed tariff hike is much below average price escalation in the country.
Comments of the Commission:
As regards continuance or enhancement of the targeted subsidy or overall revenue
subsidy, the same is the prerogative of the State Government, and the Commission
has not received any communication from the State Government for FY 2015-16 at
the time of issue of the Order. For Truing up of FY 2013-14, the Commission has
considered the actual subsidy booked as per Audited Statement of Accounts. For
APR of FY 2014-15, the Commission has considered the proposal as submitted by
APDCL. For FY 2015-16, the Commission has calculated the revenue at full cost
tariff (i.e. tariff without subsidy). The details are elaborated in respective chapters of
this order.
Issue No. 16: Tariff - Fixed and Energy Charges
Objections:
ABITA, Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad submitted that the tea industry is a major industry providing employment
and source of livelihood. The Objectors further submitted that this industry should be
promoted by way of incentive in the form of lower tariff. However, instead of providing
any incentive, the tariff of this category is set at higher level. ABITA also submitted
that, the tariffs for tea and rubber plantation are among the highest both within the
state and in comparison to other tea growing states, and the same is adversely
impacting the viability of the business. Accordingly, the objectors requested that any
upward revision of tariff for this category should not be allowed.
38
ABITA has further submitted that the fixed charges are for maintenance of
infrastructure and cost of providing service, but as there is no major improvement in
quality of supply neither there is any major improvement in distribution infrastructure,
any proposed increase in fixed cost is irrational and should not be allowed. Further,
fixed charges to seasonal consumers lead to higher charges during the off peak
seasons and any revision in the same should not be allowed for Tea and Rubber
plantation category.
Grahak Suraksha Sanstha submitted that fixed charge is an indirect method of
increasing tariff, so that actual hike in per unit consumption of electricity does not
appear too high. They submitted that since introduction of fixed charges in 1998,
there has been 100% to 300% hike in fixed charges and requested the Commission
to disapprove the proposal for hike in fixed charges. Further, they submitted that the
commercial and industrial consumers can recover the cost of electricity from general
consumers who purchase their goods and avail services, however, domestic
consumers have no such option and therefore, while determining tariff of this
category of consumers, the same has to be kept in mind.
Grahak Suraksha Sanstha, All India Manufacturers‟ Organization, North Eastern
Small Scale Industries Association and North Eastern Tea Association submitted that
the proposed tariff hike is not justified, and requested the Commission to disapprove
the same.
All India Manufacturers‟ Organization submitted that the proposed hike in tariff cannot
be justified, at a time when the industrial scenario in the State is dismal and
incentives are being offered by Central and State Governments to attract investors.
Instead, APDCL should radically improve its technical and administrative processes
and procedures to reduce the costs.
All India Manufacturers‟ Organization and North Eastern Tea Association have
submitted that APDCL should follow the principle of charging minimum charge, i.e.
Fixed Charge or Energy Charge, whichever is higher.
All India Manufacturers‟ Organization submitted that, as per Time of Day (TOD) tariff,
consumers are charged at different rates for the energy consumed during the day.
They submitted that in spite of constant load shedding, fixed charges are collected
39
whether power is supplied or not and demanded for calculation of fixed charges
based on actual hours of power supply. They further submitted that as FPPPA
formula is in place and is periodically revised and with rates of gas going down, there
is no reason for steep tariff increase, which would discourage investors and
negatively impact existing industries, dampening the entrepreneurship spirit and
employment scenario in the state.
North Eastern Small Scale Industries Association objected to the proposed hike in
fixed and energy charges of domestic and small scale industry category, and urged
the Commission to reject the proposal of tariff hike until the quality of supply is
improved. They further submitted that the activities of Small scale industries are
limited and these industries utilize power for maximum eight hours a day, for hardly
22 days a month, on account of the nature of their operations. However, these
industries are paying fixed charges on actual connected load for full 24 hours without
utilizing the power for full period. The Objector requested that the fixed charges
should be levied only on actual hours of power used. The objectors further requested
the Commission to reduce the existing fixed charges along with the tariff.
Shri Khataniar has submitted little increase in tariff is quite reasonable considering
the price index. However, the fixed charges should not be increased.
Response of APDCL:
APDCL submitted that the tariff of APDCL is comparable to other major tea growing
states like West Bengal and Tamil Nadu. APDCL further submitted that the fixed
charge proposed by it is much lower than the other two states.
APDCL further submitted that the Tariff fixation is a transparent process and related
to cost of supply and with the increase of these parameters, the increase in tariff is
inevitable. APDCL submitted that the current tariff structure comprises of two
components- energy charge and fixed charge. While the Energy Charge is levied for
recovery of power purchase cost and transmission charge, the Fixed Charge is
primarily the charge for operation and maintenance of distribution network and
equipment. APDCL further submitted that the operation and maintenance cost of
electricity infrastructure has been increasing manifold due to price rise of all
commodities which determine the cost of supply in distribution sector while in
contrast, the fixed charge has remained static for the last 10 years. APDCL further
40
submitted that as per tariff principle, the fixed cost is to be recovered through fixed
charge and APDCL has considered only 68% recovery of the total fixed cost by way
of fixed charge. However, with respect to resistance to rise in fixed charge, APDCL
submitted that it is not opposed to any form of tariff structure as far as the total
revenue requirement is allowed to be recovered by the Hon‟ble Commission. APDCL
also submitted that the details of various expenses involved are clearly elaborated in
the tariff petition.
APDCL further clarified that the proposed tariff excludes the Government subsidy and
with the declaration of Government subsidy, if any, the rate is likely to be reduced.
For tariff of domestic consumers, APDCL submitted that the Domestic category
consumers get the privilege of cross subsidized tariff as well as subsidy from the
Government.
With respect to objection of Shri Khataniar, APDCL has submitted that, it welcomes
the acknowledgement of the respondent with respect to tariff hike. However, with
respect to fixed charges, APDCL mentioned that the fixed charge has not been
revised since 2005-06 and APDCL has considered only 68% recovery of the total
fixed cost by way of fixed charge as stated above.
Comments of the Commission:
The Commission has carried out due prudence check of various components of the
ARR and examined the assumptions and proposals made by APDCL. The
Commission has considered the objections/suggestions of the objectors and
APDCL‟s views, while determining the tariff including fixed charges and energy
charges.
As regards to the revenue gap claimed by APDCL in APR of FY 2014-15, the
Commission has not allowed the same at this stage, as only a review of the
performance of FY 2014-15 has been carried out in this Order, and the net revenue
gap/(surplus) for FY 2014-15 will be known only after truing up for FY 2014-15, based
on prudence check of the Audited Statement of Accounts for FY 2014-15.
As regards to the issue of comparison of tariff with other states, it should be noted
that while comparison of tariff/category-wise tariff is useful for giving an idea of the
tariff categories and tariffs prevalent in other States, the same cannot be used as a
parameter for determining the category-wise tariffs in the State of Assam, as the
category-wise tariffs depend on the average cost of supply, consumer mix, and
41
consumption pattern, which differs from one State to another. APDCL has to recover
the approved revenue requirement from the tariffs charged to different consumer
categories on their respective consumption.
It is true that fixed charges are intended to recover a part of the fixed costs of the
utility, while the energy charges are intended to recover the variable costs (power
purchase including transmission charges) as well as the balance part of the fixed
costs.
As regards to continuance of the targeted subsidy, the same is the prerogative of the
State Government, and the Commission has not received any communication from
the State Government regarding the continuation or reduction or enhancement of the
targeted subsidy for FY 2015-16, till date.
Issue No. 17: Special Tariff for 132 KV consumers
Objections:
FINER has submitted that, Transmission lines to industrial consumers should be
updated to 132 KV and the Commission should fix the tariff at 132 KV level for
industrial consumers which will also lead to reduction of losses.
Response of APDCL:
In response to the objection of FINER, APDCL has said that it is not opposed to
voltage wise tariff structure as far as the total revenue requirement is allowed to be
recovered through suitable tariff structure.
Comments of the Commission:
The Commission has noted the objections/suggestions of the objectors. However, for
implementation of separate tariff for 132KV level, some study needs to be conducted
to understand the impact of such move on total ARR. The Commission has issued a
detailed directive in this regard.
Issue No. 18: Determination of Contract Demand
Objections:
42
ABITA has submitted that the Commission, in its earlier Order, has fixed the lower
limit of the Contract Demand as 65% of the Connected Load and such a limitation in
respect of HT consumers are not prevalent in any of the power utilities. ABITA further
submitted that in the case of tea industry, requirement may vary depending upon the
size of the tea garden and the installations. ABITA further submitted that the
maximum demand actually required by tea gardens is between 30% to 50% of total
connected load and not 65%. ABITA further submitted that the billable demand
should be linked to the sanctioned/contract demand as declared by the consumer
based on his understanding of power requirement/loading and not on the connected
load, as connected load comprises of several electrical load/installations, which are
not used simultaneously. Accordingly, ABITA requested the Hon‟ble the Commission
to allow demand charges against contracted /sanctioned demand rather than on the
basis of connected load.
Further considering the seasonal nature of tea business, ABITA has proposed to
consider three different seasonal contract load arrangement for seasonal, non-
seasonal and low seasonal demand.
Assam Bought Leaf Tea Manufacturer‟s Association, Assam Tea Planters‟
Association & Bharatia Cha Parishad submitted that Distribution company insists on
a minimum contract demand of 70% of connected load forcing consumers to take
higher contract demand than required. The objectors further submitted that the
concern of Distribution Company should be contract demand and not the connected
load and such practice of minimum contract demand is proposed to gain undue profit
by APDCL. The objectors also cited a judgement of Hon‟ble APTEL, in support of
their argument. The objectors further submitted that such system of fixing contract
demand for billing is illegal and unscientific and such system has been stopped by
other electricity boards in India. The objectors also presented the comparison of total
connected load and fixed charge collected for different category of consumers to
show that the fixed charges for tea category are higher when compared to other
categories. The objectors also opposed that provision of penalty for connected load
exceeding the declared connected load and submitted that same is not required as
there is already a provision for unauthorised use of electricity under the Electricity
Act.
North Eastern Tea Association has submitted that while actual demand is normally
60% to 70% of connected load, but the consumers are charged fixed charges based
43
on connected load instead of contract demand which is not correct. The objector
cited the judgement of HPERC in support of his argument.
All India Manufacturers‟ Organization has submitted that security deposit should not
be charged based on connected load but based on average consumption.
Response of APDCL:
APDCL submitted that there is a provision of seasonal tariff which has been
introduced considering the unique nature of consumption of tea industry. APDCL
further submitted that under this seasonal tariff, the seasonal demand is between
65% to 105% of the connected load, while during off-season, the benefit of off-
season contract demand at 40% of the seasonal demand is also provided.
Comments of the Commission:
This issue related to contract demand is presently sub-judice before Higher Courts
and hence, the Commission is not revisiting the present arrangement at this juncture.
With respect to the objections of All India Manufacturers‟ Organization, the amount of
the security deposit obtainable from any consumer should be annually adjusted as
per relevant clause of the Supply Code.
Issue No.19: Pro-rata adjustment of Fixed Charges based on availability of
supply
Objections:
ABITA referred to AERC regulation 7.5 of AERC (Electricity Supply Code and
Related Matters) Regulations, 2004, and submitted that AERC methodology for
allowing pro-rata adjustment of fixed charges if power is not available for more than
240 hrs in a month is limiting. ABITA further submitted that the regulation of AERC
that allows for recovery of 100% of fixed cost, while supplying electricity for only 67%
of the time, is not correct. Accordingly, ABITA has demanded for the pro-rata
adjustment of fixed charges directly on the basis of hour of supply. ABITA also
submitted that the methodology for pro-rata adjustment does not prescribe any
consideration for voltage and the same formula should be modified and any deviation
from Standard of Performance should be considered as non-availability of power.
44
Response of APDCL:
APDCL submitted that the said matters are prayer before the Commission and
APDCL will comply as per the Directives and Regulations of the Commission.
Comments of the Commission:
As regards ABITA's suggestion to allow pro-rata payment of fixed charges based on
duration for which APDCL supplies power, Regulation 7.5 of the AERC (Electricity
Supply Code and Related Matters) Regulations, 2004 (First Amendment) 2007,
specifies that in case the distribution licensee is unable to supply power to a
consumer for a period of 240 hours or more in a calendar month, the applicable fixed
charges should be levied on pro-rata basis for the hours of supply.
As regards ABITA's suggestion that any deviation from the voltage limits prescribed
in the Standards of Performance Regulations should be treated as non-availability for
the purpose of prorating of demand charges for industrial consumers, the
Commission clarifies that the consequences of non-adherence to the prescribed
voltage limits have to be dealt in accordance with the Standards of Performance
Regulations.
Issue No.20: Voltage-wise cost of supply
Objections:
ABITA, Cement Manufacturing Company Limited, FINER and Assam Bought Leaf
Tea Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishad have submitted that the Commission in its MYT Order for 2013-16 has
issued directives, regarding voltage-wise cost of supply. However, during the
proceeding for determination of tariff of FY 2014-15, the data submitted by APDCL
for determination of voltage wise cost of supply was found to be insufficient and the
Commission asked APDCL to submit the detailed calculation of voltage wise cost of
supply along with next ARR and tariff petition. The objectors have further submitted
that as per Hon‟ble APTEL judgement also, the cost of supply for determination of
cross subsidy is not average cost of supply but actual cost of supply and the formula
used in judgement of Hon‟ble APTEL for determination of CoS shall be used in
absence of sufficient data for determination of voltage wise cost of supply. ABITA
further submitted that, APDCL has not submitted the required details for determining
45
CoS and hence the Commission should impose a penalty on APDCL for non-
compliance of the past directive.
Cement Manufacturing Company Limited, FINER and Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parisha have submitted several judgement of Hon‟ble Supreme Court and APTEL in
support of their augment and claimed that, if the category wise cost of supply is
properly determined, the cross subsidy of tea/industry category will increase to level
prohibited as per the provision of Electricity Act, National Tariff Policy and National
Electricity Policy. Accordingly, the objectors requested the Commission to adopt
category wise cost of supply for determining cross subsidy.
ABITA has further submitted that data for MRI downloads has not been shared by
APDCL as directed by the Commission.
Response of APDCL:
APDCL has submitted that, it is complying with the directives of the Commission and
the provisions of regulations. APDCL further submitted that, it is not opposed to
voltage wise tariff structure as far as the total revenue requirement is allowed to be
recovered through suitable tariff structure. APDCL also submitted that it is committed
to providing all the information in this regard along with the multi-year tariff petition for
the period 2016-19.
Comments of the Commission:
The Commission notes that APDCL has committed to submit proposal for voltage
wise cost of supply along with adequate information during the filing of multi-year
tariff petition for the period 2016-19. In this order, the Commission has continued with
the approach of determining tariffs on the basis of average cost of supply, in the
absence of sufficient data regarding voltage-wise cost of supply. Furthermore, a time
based directive for compliance in this regard is given in this order.
Issue No. 21: Seasonal Load
Objections:
ABITA submitted that during the lean seasons of four month the consumption of tea
factories is nil and the electricity is used for irrigation purpose of watering the bushes.
46
ABITA submitted that in 2001, permission was granted by APDCL for using of factory
load for irrigation purpose which was withdrawn pursuant to enactment of Electricity
Act and notification of Supply Code in 2010. Since then the load of irrigation
equipment is considered in total calculation of connected load. ABITA submitted that
because of this system the tea factories are being required to obtain permanent
additional load for irrigation purposes (normally required four months), and the
factories have to pay demand charges for the entire year, which is unjustified.
ABITA requested the Commission to allow utilization of factory load for irrigation
purpose during the off-season. ABITA requested the Commission to direct APDCL
not to include standby or spare energy apparatus, which is installed through
changeover switch/electrical interlocking arrangement while determining the
connected load.
Assam Bought Leaf Tea Manufacturer‟s Association, Assam Tea Planters‟
Association & Bharatia Cha Parishadsubmitted that Distribution company is not
making any distinction between category of work done like (agriculture related activity
of tea leaf cultivation, industrial related activity of tea processing and other
commercial activity like running of hospital) and is charging the tea consumers for
entire consumption at same rate which is not correct as per Act ‟03. The objectors
also provided the reference of a judgement of Hon‟ble APTEL in support of their
argument.
All India Manufacturers‟ Organization also submitted that food processing sector
operates solely during harvest season. Accordingly, the food processing units can
operate at optimal capacity for only six months. However, they bear the heavy burden
of fixed electricity charges throughout the year. Therefore, they requested, the
Commission to address the issue in the interest of farmers and agro processors of
the State. Moreover, a separate category for agro based processing units may be
formed to grant relief from fixed charges during off peak season of at least five
months.
North Eastern Tea Association has submitted that seasonal industries should be
charged fixed cost for only the peak months and during the lean months no fixed cost
should be charged.
Response of APDCL:
47
APDCL has submitted that due to unique nature of consumption of tea industry the
provision of seasonal tariff has been introduced. APDCL further submitted that under
this seasonal tariff, the seasonal demand is between 65% to 105% of the connected
load, while during off season, the benefit of off-season contract demand at 40% of
the seasonal demand is also provided.
APDCL further submitted that it is not opposed to any form of tariff structure as far as
the total revenue requirement is allowed to be recovered.
In its reply to All India Manufacturers‟ Organization, APDCL has submitted that, it
welcomes the positive suggestions in the interest of the farmers and agro based
processors of the state. There is already a separate category for Tea, Coffee and
Rubber that offers rebate in energy charge under TOD tariff.
Comments of the Commission:
The issue of tea factories and food processing factories being forced to obtain
permanent additional load for irrigation purposes will be taken up separately by the
Commission, after due consultation with APDCL and industry associations. As
regards to ABITA's suggestion that standby or spare energy apparatus, which is
installed through changeover switch/electrical interlocking arrangement, should not
be included while determining the connected load, the Commission is in agreement
with the suggestion, as such standby/spare apparatus cannot be used
simultaneously, without operating the changeover switch. With regard to suggestion
of Assam Bought Leaf Tea Manufacturer‟s Association, Assam Tea Planters‟
Association & Bharatia Cha Parishad for considering consumption in hospital of tea
gardens under corresponding category for hospitals, the Commission is in agreement
with the suggestion, however, the same requires detailed examination and APDCL is
directed to discuss the matter with the tea associations and come up with suitable
proposals..
Issue No. 22: Cross-Subsidy
Objections:
ABITA submitted that the cross subsidy is very high in state compared to other
states. ABITA also submitted that agriculture and BPL consumers in other states are
subsidized by the Government. However in Assam, the domestic and other LT
48
consumers continue to remain highly cross-subsidized and in absence of any direct
subsidy from the State Government to the economically weaker sections, the
industrial and other HT consumers are required to bear the burden of cross-subsidy.
ABITA further requested the Commission not to allow the tariff increase proposed by
APDCL and consider it with due diligence as per the provisions of the Tariff Policy
which stipulates that SERCs should aim at achieving cross subsidy within +/- 20% of
the cost of supply while determining the Tariff for FY 2015-16. ABITA also requested
the Commission, to fix a time frame for removal of cross subsidy in state.
Cement Manufacturing Company Limited, FINER and Assam Bought Leaf Tea
Manufacturer‟s Association, Assam Tea Planters‟ Association & Bharatia Cha
Parishadsubmitted that, as per tariff policy, cross subsidy percentage for any
category should decrease over the years, while APDCL has proposed a hike in cross
subsidy to be contributed by most of the subsidizing categories. They submitted that
the projections for tariff are without any justification and same should not be
approved.
Response of APDCL:
APDCL has submitted that the proposed tariff is prepared based on the prevailing
policy and Regulations and are within the norms specified therein.
Comments of the Commission:
The Commission has determined the category-wise tariffs in accordance with the
provisions of the Act, „03, such that the cross-subsidies are gradually reduced, while
at the same time, the approved ARR of APDCL is recovered, and the tariffs for most
categories are within +20% of the average cost of supply as stipulated in the Tariff
Policy. The Tariff philosophy adopted by the Commission and the approved category-
wise tariffs for FY 2015-16 is elaborated in corresponding Chapter of this Order.
Issue No. 23: Cross-Subsidy Surcharge
Objections:
Cement Manufacturing Company Ltd. and FINER have submitted that the
Commission, vide its Order dated November 21, 2013, determined the Cross-
Subsidy Surcharge(CSS) of Rs. 1.63/unit per kWh, which was on account of merger
49
of the CSS and FPPPA. The objector submitted that the cross subsidy surcharge
with the merged FPPPA is being levied by APDCL on Indian Energy Exchange (IEX)
power being procured by the objectors. The Objectors further submitted that the levy
of FPPPA along with CSS will defeat the primary purposes of the Act „03 by making
open access burdensome and unviable. The objectors also submitted that by opting
for open access, power from APDCL is not being used and hence the question of
paying the fuel cost adjustment to APDCL should not arise. The objectors requested
the Commission to revise the methodology of computation of cross subsidy
surcharge by discontinuing the practice of merging the FPPPA with CSS and
recovering the same from open access consumers.
Response of APDCL:
APDCL submitted that FPPPA charge is being levied by APDCL only to the extent of
power drawn from APDCL and not on the quantum purchased through open access.
Comments of the Commission:
As regards the issue of recovery of FPPPA from the open access consumers, the
Commission clarifies that FPPPA is recovered only on the quantum of energy
supplied by APDCL, and hence, no FPPPA is recovered from the open access
consumers on the energy sourced from other sources. The Commission has
determined the CSS based on Average Cost of Supply and Average Billing rate in
corresponding chapter of this order.
Issue No. 24: Power Factor Rebate
Objections:
FINER has submitted that rebate and penalty formula for Power Factor Rebate in
state is skewed, while there is penalty for every % fall in power factor below 80%,
power factor incentive above 95% is fixed, unlike many other states where 1% extra
rebate is provided for every additional 1% improvement in Power Factor above 95%.
The Objector has provided the details of provision for power factor rebate/penalty of
other states to support its argument.
Response of APDCL:
APDCL submitted that it agrees with any structure of tariff if the total revenue
requirement is allowed to be recovered through suitable tariff structure.
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Comments of the Commission:
The Commission has noted the objection and APDCL‟s reply. However, this matter
requires detailed analysis and will be dealt with separately.
Issue No. 25: Billing
Objections:
North Eastern Small Scale Industries Association (NESSIA) requested that supply
voltage of the consumers should be mentioned in the monthly electricity bill.
Response of APDCL:
APDCL submitted that in compliance with the directive issued by the Commission in
the Tariff Order for FY-2014-15 dated November 21, 2014, it has issued instructions
to incorporate voltage of electricity supply to the consumers, in the electricity bills,
vide letter no: APDCL/CGM(COM)/DIRECTIVES-AERC/2014/10, dated, February 07,
2015.
Comments of the Commission:
The Commission has noted the objection and APDCL‟s reply to compliance of
directive. The Commission directs APDCL to mention the prescribed voltage of
electricity supply to all consumers in the electricity bill.
Issue No. 26: Quality of Service
Objections:
All India Manufacturers‟ Organization submitted that the distribution network is so
feeble that a brief thundershower or storm in any part of the State causes the
distribution network to fail and it takes hours and sometimes days to get electricity
supply restored. Both All India Manufacturers‟ Organization and North Eastern Tea
Association submitted that power supply is very erratic and tea industries are forced
to depend on captive power generation which increases their expenses.
Grahak Suraksha Sanstha has submitted that for the period for which APDCL is
facing power shortage, APDCL should adequately advertise the plan before giving at
51
least 24 hour notice to the consumers likely to be affected by load shedding. They
submitted that it is the responsibility of distribution companies to supply electricity in
efficient and economic manner, at which APDCL has failed miserably. Also, Grahak
Suraksha Sansthahas submitted that quality of service, especially to Tea gardens is
pathetic and APDCL should take up initiatives especially for tea gardens for
improving supply conditions.
North Eastern Small Scale Industries Association submitted that the power sector
reforms have been undertaken by the Government of India to provide quality power
to the consumers at an affordable price. The objector submitted that during the
previous tariff revision, APDCL had claimed that steps have been taken to streamline
and improve the services to the consumers; however, prolonged unscheduled load
shedding, frequent power interruption and poor quality of power are still common.
They submitted that APDCL had taken up various projects with funding from Assam
BikashYojna, RGGVY, RAPDRP, etc., to improve its sub-transmission and
distribution system, and it was expected that the quality of supply would improve
considerably; however, the same has not been seen in reality.
The Consumers Legal Protection Forum has submitted that, the Commission should
look into whether, consumers are getting service according to standard operating
procedure from Utilities. The forum has submitted their concern over the
legitimate rights of the electricity consumers.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram Samiti has submitted that, the
quality of service has not improved in the proportion of increase in Tariff. They
submitted that one of the major causes of Industrial under development in state is
the dismal power situation. They also submitted that the power availability in rural
areas is very poor and the services of the franchisees are not satisfactory. Krishak
Mukti Sangram Samiti & Gana Mukti Sangram Samiti further submitted that Tariff
should not be increased till the power supply situation is improved by the Power
Companies.
Response of APDCL:
APDCL submitted that after restructuring, it has been trying its best to provide quality
service to the people of Assam and the situation has improved considerably.
However, due to various constraints, the desired level of quality is yet to be achieved.
52
APDCL further submitted that in recent times, with the implementation of various
projects and power purchase agreements, the power position of the state has
considerably improved. APDCL further submitted that, both APDCL and AEGCL are
undertaking several projects to cater to 100% of future demand. APDCL also
submitted that they are hopeful that with the implementation of all the projects in
pipeline and with improvement of the financial position, they will be able to reduce
distribution loss and strengthen the distribution network and subsequently it will able
to provide more reliable service to its consumers.
With regard to specific comments of tea association, APDCL submitted that the
power situation of state has improved during last few years and at present the power
availability is up to the expected level and APDCL is trying to supply 24x7 power to
the tea sector.
Comments of the Commission:
The Commission has noted the objections in this regard, and reiterated the need for
utitlies to improve their Standard of Performance. Also, the Commission is
undertaking a Study on Effectiveness of Consumer Grievance Redressal Mechanism
and Compliance of Standards of Performance (SoP).
It has to be noted that there is a provision for pro rata adjustment of fixed charges if
the outage is more than 240 hrs in a month, however, consumers are not exercising
this right by claiming pro rata adjustment of fixed charge. Also, there is penalty for
deviation from standard of performance, but such penalty is not reported to be
claimed by consumers. The Commission has issued specific directive in this order, to
display standard of performance criteria in front of all sub-division offices to increase
consumer awareness. The consumers should also assert their rights and lodge
complaints through proper redressal mechanism such as CGRFs.
Issue No. 27: Meeting demand supply gap and increasing own generation
Objections:
All India Manufacturers‟ Organization submitted that power shortage situation in the
state is grim and the supply is regularly interrupted. In absence of reliable power
53
supply, people have to resort to other fuels. APDCL should ensure that gap between
demand and supply is bridged and per capita consumption of state is improved.
Grahak Suraksha Sanstha has submitted that no new plants have been added by
APDCL in spite of several assurances.
Krishak Mukti Sangram Samiti & Gana Mukti Sangram Samiti submitted that APDCL
has not taken any step for increasing the production and consumption of power in
Assam.
Response of APDCL:
APDCL has submitted that, In recent times, with the implementation of various power
projects like OTPC,BTPS, Myntriang and other bilateral power purchase agreements,
the power position of the state has considerably improved. APDCL further submitted
that with upcoming projects like R-APDRP, as well as several measures undertaken
by APDCL (under different schemes such as ABY, TDF, etc) to reduce distribution
loss and to strengthen the distribution network, APDCL will able to provide more
reliable service to its consumers.
With respect to objection of Grahak Suraksha Sanstha, APDCL has submitted that,
various steps are being taken by APDCL to improve power availability as briefed
below:
1. Commissioning of OTPC –Unit-1 w.e.f. January 2014 with installed capacity
363.3 MW and Assam‟s share of 120 MW. The 2nd unit of OTPC at Pallatana
with installed capacity 363.3 MW and Assam‟s share of 120 MW has been
commissioned and COD has been declared on March24, 2015. Full
generation from this unit is expected from 3rd week of May 2015.
2. The 1st unit of Bongaigaon TPP of 250 MW is likely to be commissioned by
October 2015 and Assam‟s share in this project is 130 MW.
3. Stage –II (2 x 1.5 MW) of Myntriang SHEP was commissioned on March 3,
2014 and commercial operation started on August 8, 2014. The overall
progress of Stage –I(2x 3 MW) is 53% complete. The project capacity will be
enhanced by another 4.5 MW (additional 1x 1.5 MW in St-II and 1x 3 in St-I).
The entire project is expected to be completed by December 2015.
54
4. The contract with earlier EPC for 6 MW Lungnit SHP has been terminated
due to slow progress of work and necessary action for bidding process for
completion of balance works has been initiated.
5. Arrangement has been made for 75 MW from 500 MW FSTPS –III project of
NTPC from September „2014 to August 2016.
6. Agreement has been made for purchase of 35 MW merchant power from
OTPC.
7. Agreement has been made for purchase of 75 MW power from DVC on short
term basis from May 2015 to July 2015.
Further new projects in the pipeline expected to improve power availability in the
state have been briefed below:
1. 70 MW Lakwa Replacement Gas IC Engine Project
2. 660 MW Margherita Coal Based Power project.
3. 40 MW Titabar Gas Based Power project.
4. 30 MW Cachar Gas Based Power project.
5. 60 MW Revival of Chandrapur Thermal Power Plant
6. 120 MW Lower Kopili Hydro Electric Project.
7. 24 MW KarbiLangpi Middle-II Hydro Electric Project.
8. 22.5 MW KarbiLangpi Middle-I and 12 MW KarbiLangpi Barrage Toe Hydro
Electric Project.
9. 21 MW Amring SHEP and 60 MW KarbiLangpi Upper stage HEP
10. Solar Projects:
2 MW Namrup Solar PV project
2 MW Lakwa Solar PV project
60 MW Amguri Solar PV project
11. PPA has been signed to procure 118 MW power from Nikachhu hydro Power
station in Bhutan through PTCIL for a period of 25 years w.e.f July „2019.
12. Central government has been requested to allocate 500 MW power from
Bhutan Hydroelectric Projects at Punatsangchhu-I &II and Mangdechhu HEP
13. PSA has been signed with Solar Energy Corporation of India to procure 20
MW solar power from April‟2016.
Comments of the Commission:
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Commission has noted the views expressed by the Objectors. However, most of the
views are related to power generation within the state, which is not under the ambit of
APDCL.
Furthermore, although the Commission appreciates the effort taken by APDCL in
sourcing power from different sources, it has to be understood that with rise in
economic activity and energy access, the demand is further going to increase.
Therefore, APDCL should explore power purchase through competitive bidding route
for sourcing cheaper power.
Issue No. 28: Internal Financial Control
Objections:
Assam Bidyut Grahak Adhikar Parishad has submitted that several flaws in audited
accounts have been discovered by CAG and has recommended for strengthening of
company‟s internal financial control system giving some instances. The objector
further submitted about some other irregularities reported by CAG in the area of
accounting of over drawl penalty of contract demand, delay in replacement of faulty
meters, excessive rebate to consumers, wrong posting of meter multiplying factor for
bill calculation of tea gardens etc.
Assam Bidyut Grahak Adhikar Parishad further submitted that the new connection
application by consumers is denied on the pretext of unavailability of transformer
capacity while the same is made available by various agents active in different
electricity office.
The objector requested that APDCL should look into these and suggested that the
senior people from the company and government shall work together for improving
this situation. The objector further requested the Commission to consider all these
issues while setting tariff for APDCL.
Response of APDCL:
APDCL categorically denied the allegation brought against it and submitted that the
accounts of APDCL are audited by statutory auditor as well as CAG. APDCL further
submitted that implementation of various automation schemes like ERP, R-APDRP
are in progress and implementation of these schemes will equip APDCL with
automatic auditing and resource control. APDCL also submitted that there is a
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dedicated internal audit wing of APDCL, headed by CGM(Audit) and the same is
independent of CGM(F&A) and being a company under Companies Act, APDCL is
bound to adhere to the provision of the Act. With regard to points raised by CAG,
APDCL submitted the management reply to audit para in respective annual accounts.
Comments of the Commission:
The Commission has noted the objection and response of APDCL in this regard. The
Commission has done prudence check of each expense/income head while truing
up. With regard to ERP project, APDCL is directed to complete the ERP project on
priority basis to eliminate issues related to manual maintenance of data in the
register. Technology like Enterprise Resource Planning (ERP) shall be used for
improving the internal control mechanism.
Issue No. 29: Validity of Audited Accounts
Objections:
North Eastern Tea Association submitted that there are several comments of auditor
and CAG showing discrepancy in accounts which the objector requested not to be
passed on to consumers. The key discrepancies pointed out are Rs. 128.04 Crore
not shown as income, overstatement of accumulated loss by Rs. 291.09 Crore, Rs.
11.81 Crore of rebate not deducted from purchase of power accounts and Rs. 62.30
Lakh interest for delayed payment of power purchase cost.
Similar to North Eastern Tea Association, Assam Bidyut Grahak Adhikar Parishad
also submitted the comments of CAG. The objector further pointed out that there are
other irregularities reported by CAG in the area of accounting of overdrawl penalty of
contract demand, delay in replacement of faulty meters, excessive rebate to
consumers, wrong posting of meter multiplying factor for bill calculation of tea
gardens etc. The objector also pointed out the reply of management provided in
Audited Statement of Accounts of FY 2013-14, on comments of CAG to audited
accounts of FY 2012-13 regarding non accounting of service charge to the tune of
Rs. 122.59 Crore, non-accounting of dues payable against supplementary power
purchase bill for the period of FY 2004-05 to FY 2012-13 to the tune of Rs. 42.97
Crore and short provisioning of interest liability on GPF to the tune of Rs. 2.50 Crore.
The objector requested that inefficiencies of discoms should not be passed on to the
consumers.
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All Assam SSI Association submitted that the Petition filed by APDCL is not a valid as
the figures of the petition were not totally tallying with the audited accounts. Also, All
Assam SSI Association submitted that the four members signing the audited
accounts of the licensee company could not ascertain themselves as the board
members of Licensee Company. All Assam SSI Association also pointed the
discrepancy in presentation of distribution losses and energy sales vis a vis audited
accounts.
Response of APDCL:
APDCL submitted that Rs. 291.09 Crore as reported by the Audit is the Regulatory
Assets pending recovery.
Regarding CAG comments of Rs.11.81 Crore of rebate not deducted from purchase
of power accounts, APDCL submitted that the power purchase cost has been taken
on gross basis in the petition and hence the same will have no impact on the ARR
claim of APDCL.
Regarding the CAG comment of Rs. 128.04 Crore not being shown as income,
APDCL further submitted that as per the terms of the RGGVY scheme, the
implementing agencies (state utility) are entitled for an agency charge at 8% of the
project cost after deduction of BPL fund as Service Charge. The amount of service
charge is allowed to the utilities for meeting additional expenditure on:-
Compulsory third party monitoring at the first tier of the Quality Control
Mechanism.
For supporting activities and Quality Monitoring at the Third Tier (National
Quality Monitors) to be undertaken by Ministry of Power, a provision of 1% of
the outlay would be kept. The supporting activities would be in the nature of
capacity building, awareness and other administrative and associated
expenses, franchisee development and undertaking of pilot studies and
projects complementary to the rural electrification schemes which are capital
in nature.
APDCL further submitted that the amount received has been accounted for as a part
of project cost of RGGVY instead of income.
In reply to the objections of All Assam SSI Association, APDCL submitted that the
Annual Statement of Accounts is duly signed by competent authorities as per
provisions of the Companies Act and the designations of the signatories are available
in the website of APDCL. APDCL further submitted that amount presented in the
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truing up petition for FY 2013-14 is exactly as per Audited Statement of Accounts
except for the normative parameters and any difference in number is due to the fact
that some head of accounts are required to be rearranged for true-up petition.
APDCL clarified that this happens due to the fact that annual Statement of Accounts
is prepared and represented as per relevant guidelines, regulations, standards as set
forth for this purpose while Truing up petition is prepared in the regulatory framework
and relevant guidelines.
Comments of the Commission:
The Commission has noted the reply of APDCL regarding the treatment of amount
received as service charge for RGGVY implementation work. The matter has been
examined and details may be seen in the relevant chapter.
Further the Commission believes that timely payment of power purchase bills is
responsibility of APDCL and any penalty on account of late payment should not be
passed on to the consumers.
The Commission likes to reiterate that proper prudence check of each of the revenue
and expense item is undertaken while determining the ARR.
Issue No. 30: GPS Real time clocking and energy accounting
Objections:
Assam Bidyut Grahak Adhikar Parishad has submitted that Energy accounting on the
part of APDCL is not proper and not done based on GPS real time clocking. If the
energy accounting is not correct, energy audit cannot be done as per the mandate of
AERC. Assam Bidyut Grahak Adhikar Parishad further submitted that APDCL has
said that the system of energy accounting with GPS real time clocking will be
implemented soon using optical fibre medium.
Assam Bidyut Grahak Adhikar Parishad also submitted that, AERC (Electric Supply
and Related Matter) Regulation 2004, provides for regular testing and calibration of
meters. The objector submitted that APDCL has not done it successfully and a large
amount of billing is done based on estimated energy consumption leading to incorrect
energy audit.
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Response of APDCL:
APDCL submitted that energy accounting of the entire North East Region is done on
real time basis by North Eastern Regional Load Dispatch Centre using SCADA and a
Regional Energy Accounting Report is also issued every month by NERPC.
Comments of the Commission:
The Commission has noted the objection and response of APDCL in this regard.
Issue No. 31: Hearing Process
Objections:
Consumers Legal Protection Forum submitted that, hearing is being organized by
AERC at Guwahati with the presence of limited number of participants. They
submitted that many consumers are interested to be present in the Hearing.
However, they are unable to attend the hearing as it takes place centrally, at
Guwahati. They further submitted that due to this process adopted by the
Commission, consumers are losing their rights to file objections against tariff hike.
Consumers Legal Protection Forum demanded that the Commission should organize
hearing at every district headquarter and take objections/ suggestions prior to taking
any decision on Tariff hike.
Consumers Legal Protection Forum, Krishak Mukti Sangram Samiti & Gana Mukti
Sangram Samiti further questioned the validity of Hearing process citing that the
objections and suggestions during previous hearings, have not been duly considered.
Further, Krishak Mukti Sangram Samiti & Gana Mukti Sangram Samiti has demanded
that APDCL should give answers publicly and the Commission should give verdict in
front of the public after hearing the objections.
In light of above objections Consumers Legal Protection Forum, Krishak Mukti
Sangram Samiti & Gana Mukti Sangram Samiti further requested the Commission,
not to increase any tariff if the satisfactory answers to objections are not provided by
APDCL.
KrishakMuktiSangramSamiti&GanaMuktiSangramSamiti also submitted that the
Commission determined Tariff for FY 2013-14 to FY 2015-16 and clarified that Tariff
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will be declared for 3 years, through a News Paper Notice (advertisement) published
on 26th September. Accordingly the objector submitted that there is no basis of
conducting public hearing for these three years, and tariff increase related to only
Fuel price increase can happen during this period. The objector further submitted that
in spite of declaring tariff for three years, the Commission has increased the tariff
twice and has called for public hearing for third tariff hike. The objector further
submitted that based on the above objections the Public Hearing for tariff hike was
improper and illegal.
Comments of the Commission:
The Commission has noted the objections of the objectors. It has to be noted that the
APDCL publishes notice (as per direction of Commission) requesting public
comments on the Tariff Petition. Thereafter, based on the number of
response/objection petitions received from consumers/societies/associations etc of
various parts of Assam, the Commission decides on suitable place/s of Hearing.
For this year, response/objections received by the Commission from outside
Guwahati, were from associations who can come down to Guwahati. Therefore, the
Hearing was conducted centrally in Guwahati. In future also Commission will decide
on requirement of conducting Hearing at multiple places based on the Public
response to Tariff Petitions.
It has to be further noted that it is not binding on the Licensees/Companies to give
answer to comments/objections immediately at the time of Hearing. However, they
are required to provide proper reply to objections as per Commission‟s direction. The
Commission takes note of all the objections of the objectors during the tariff setting
process and has set the tariff as per regulations and after doing proper prudence
check of each of submission by APDCL and objectors.
With regard to tariff hike in between the control period of MYT, it has to be
understood that Multi Year Tariff for three years is to set the tariff principle and tariff
for three years but the set tariff is based on certain assumptions like consumer mix,
sales, power purchase cost and expenses dependent inflation indices market
condition etc. While in three years, the tariff principles like the loss reduction targets
remains more or less same the actual tariff may change due to the impact of true-up
and change in parameters like interest rates, inflation, applicable taxes & duties and
61
other economic factors, which are not covered through FPPPA. The relevant extract
of AERC Tariff Regulations 2006. In this regard is presented below.
Regulation-6: Petition for determination of tariff
6.1 “The licensee and generating company shall file a tariff petition annually with the
Commission to determine changes to the current tariff not later than 1st December
unless an extension is granted by the Commission upon application.”
Further, Hon‟ble APTEL, in its order on November 11, 2011 directed that annual tariff
revision, in accordance with the letter and spirit of the Act‟03, need to be done for
securing long term viability of the electricity sector. The relevant extract of order is
presented below.
“Every State Commission has to ensure that Annual Performance Review, true-up of
past expenses and Annual Revenue Requirement and tariff determination is
conducted year to year basis as per the time schedule specified in the Regulations.”
All final orders of the Commission shall be communicated to the parties in the
proceedings as per the procedure laid down in the AERC (Conduct of Business)
Regulations, 2004.
Issue No. 32: Truing up based on Audited Accounts
Objections:
FINER, Assam Bought Leaf Tea Manufacturer‟s Association, Assam Tea Planters‟
Association & Bharatia Cha Parishad submitted that the Commission should first
undertake truing up of FY 2013-14 and pass on the credit to consumers for excess
tariff paid by them. The objectors submitted that if audited accounts are not available,
the True-up can be done from the provisional accounts also. As such the truing-up
process will help the Commission in uncovering inefficiencies of APDCL.
Response of APDCL:
APDCL submitted that it has filed the petitions as per provisions of tariff policy,
related regulations and prevailing procedure.
Comments of the Commission:
The Commission has noted the objection and response of APDCL in this regard. The
Commission has undertaken the truing up of FY 2013-14 in this order based on
Audited Statement of Accounts and as per relevant Regulations.
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Issue No. 33: Other Objections/Suggestions
Objections:
Grahak Suraksha Sanstha has submitted that AERC should take up active role in
improving consumer awareness and for this help of voluntary organisations can be
taken.
Comments of the Commission:
The Commission has issued several directives for improving consumer awareness
about their right to quality service and in this regard, APDCL has taken measures to
create consumer awareness through print and electronic media like TV, newspapers,
radio, etc. Also, the Commission has commissioned a Study on Effectiveness of
Consumer Grievance Redressal Mechanism and Compliance of Standards of
Performance (SoP) to assess the quality of service being provided by APDCL..
The suggestion regarding taking help of voluntary organisations is noted.
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4. Truing up for FY 2013-14
4.1 METHODOLOGY FOR TRUING UP
The Commission approves the cost parameters through approval of the Annual
Revenue Requirement keeping in view the data available at that point of time. The
cost approvals for each of the items are based on projection of expenses and
revenue and hence, the projections may vary over the course of the year.
The actual cost/values for certain elements/parameters may vary as against the
approved cost during the year due to various controllable and uncontrollable
reasons on the part of the Distribution Licensee. The Distribution Licensee may
end up with higher or lower expenditure and higher or lower revenue, as the case
may be, at the end of the year as against the approved cost and revenue. In case
of actual expenditure and/or revenue being higher or lower than that of the
approved expenditure and revenue, there is no mechanism during the year to
pass through the variation in expenditure and/or revenue vis-a-vis the approved
expenditure and revenue. As per Regulation 5.1 of the AERC Tariff Regulations,
2006, the tariff or part of any tariff cannot be amended more than once in a
financial year, the extract of which is reproduced below:
“5.1 No tariff or part of any tariff may ordinarily be amended, more
frequently than once in any financial year, except in respect of any
changes expressly permitted under the terms of any fuel surcharge
formula as may be specified in terms of subsection (4) of section 62
of the Act specified in Regulation 9 of these Regulations”
In the case of a Generating Company or Distribution Licensee, the Regulation 9 of
AERC Tariff Regulations provides for recovery or refund, as the case may be, of
additional charge for adjustment of tariff on account of fuel and power purchase
other than the cost approved by the Commission, on a quarterly basis through the
formulae specified by the Commission.
Under the truing up mechanism, the Commission analyses the actual expenditure
and revenue for the previous year/years based on the audited Annual Statement
of Accounts of the Licensee and allows/disallows, as the case may be, the
recovery of the actual expenditure and revenue through the ensuing year's tariff,
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subject to prudence check.
4.2 BACKGROUND
The Commission approved the ARR and Tariff for FY 2013-14 in the MYT Order
dated November 21, 2013. Further, the Commission vide the Tariff Order dated
November 21, 2014 carried out the true-up for FY 2011-12 and FY 2012-13,
Review for FY 2013-14 and determined the ARR and tariff for FY 2014-15.
APDCL has submitted the Petition for approval of true-up for FY 2013-14, APR of
2014-15 and ARR and tariff for FY 2015-16 on January 31, 2015. On scrutiny, it
was noticed that the data furnished in respect to the above mentioned petition was
deficient in some respects and the Commission sought further
information/clarification from APDCL, which has been submitted by APDCL. The
Commission has carried out the truing up for FY 2013-14 based on the
submissions of the Petitioner in accordance with AERC Tariff Regulations, 2006
and prudence check.
TRUING UP FOR FY 2013-14
4.3 ENERGY SALES
APDCL submitted the actual category-wise energy sales in its Truing up Petition
and stated that the actual sale in FY 2013-14 was 4763 MU as against approved
sales of 4605 MU, i.e., 3.44%higher than the sales approved by the Commission.
Table 4.1:Energy Sales for FY 2013-14 (MU)
Consumer Categories
Approved vide MYT Order dated
November 21, 2013
Proposed by APDCL
Trued Up
Jeevan Dhara CL 0.5 kW & 1 kWh/day 361.00 495.58 495.58
Domestic A (above 0.5 kW to 5 kW) 1150.00 1255.75 1255.75
Domestic B (above 5 kW to 20 kW) 194.00 187.96 187.96
Commercial (above 0.5kW to 20 kW) 463.00 449.98 449.98
General Purpose Supply: CL upto 20 kW
86.00 97.48 97.48
Public Lighting 14.00 13.13 13.13
Agriculture: upto 7.5 HP 6.00 6.71 6.71
Small Industries- Rura Upto 20 kWl 49.00 53.60 53.60
Small Industries- Urban 27.00 27.49 27.49
Temporary Supply 5.00 5.64 5.64
Total LT 2355.00 2593.32 2593.32
HT-Domestic - 25 kVA and above 39.00 40.16 40.16
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Consumer Categories
Approved vide MYT Order dated
November 21, 2013
Proposed by APDCL
Trued Up
HT-Commercial - 25 kVA and above 253.00 255.74 255.74
Public Water Works 66.00 72.49 72.49
Bulk Supply- Government Educational Institution
63.00 64.62 64.62
Bulk Supply-Others 340.00 367.66 367.66
HT Small Industry upto 50 kVA 24.00 23.62 23.62
HT Industry-I 50 kVA to 150 kVA 57.00 68.81 68.81
HT Industry above 150 kVA 902.00 769.95 769.95
Tea, Coffee and Rubber 398.00 394.24 394.24
Oil and Coal 77.00 83.10 83.10
HT- Irrigation above 7.5 HP 30.00 29.48 29.48
Total HT 2249.00 2169.88 2169.88
Total LT + HT 4605.00 4763.20 4763.20
The Commission approves the actual energy sales of 4763.20 MU in the
Truing up for FY 2013-14 as against the originally approved sales of 4605.00
MU.
4.4 DISTRIBUTION LOSSES
APDCL, in its Petition, submitted that it could not achieve the approved distribution
loss of 18.60% for FY 2013-14. APDCL submitted that the actual distribution loss
in FY 2013-14 was 24.11% as compared to 25.86% in FY 2012-13. APDCL has
submitted that it has been able to maintain the gradually decreasing trend in
losses even after manifold increase in low end consumers viz. Jeevan Dhara
with proper implementation of RGGVY and the loss level achieved by APDCL is
one of the modest in comparison with such other widespread distribution utilities in
other States of India. APDCL has stated that loss level in urban areas has been
reduced to value lower than approved level. However, in some areas where
situation is beyond the control of the licensee; the loss level has crossed the
approved limit. In addition to that unavoidable conditions like bandh and natural
calamities often set barriers in revenue collection which in turn increases the loss
level.
APDCL submitted that as the distribution loss is a controllable factor as per the
AERC Tariff Regulations, 2006, the effect of any gains and losses on account of
higher losses has been captured accordingly.
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The high distribution losses of the distribution licensee have always been a cause
of concern to the Commission and several directives have been issued from time
to time to restrict the distribution losses. These include introduction of prepaid
meters,, spot billing, MRI downloads for all HT and high value consumers, etc.
However, the Commission notes that APDCL‟s efforts in this regard have not been
up to mark and APDCL will have to make conscious efforts to reduce the
distribution losses from the existing levels. For the purpose of truing up for FY
2013-14, the Commission has considered the Distribution Loss at the same level
as approved by the Commission in the respective Tariff Orders and has disallowed
the excess power purchase cost incurred by APDCL on account of the excess
distribution losses over the approved, as discussed in the section on power
purchase. APDCL has to take strenuous efforts to reduce the distribution losses,
in order to ensure that it is able to recover the entire power purchase cost incurred
by it.
The distribution losses approved in the Tariff Order, actual loss furnished by
APDCL and loss as approved in the truing up for FY 2013-14, are as given in the
Table below:
Table 4.2: Distribution loss for FY 2013-14
Year Approved vide MYT
Order dated November 21, 2013
Proposed by APDCL
Approved in Truing up
FY 2013-14 18.60%
24.11%
18.60%
Accordingly, the Commission approves the distribution loss level at
18.60%in the Truing up for FY 2013-14.
4.5 ENERGY REQUIREMENT
APDCL submitted that the total energy requirement for sale to retail consumers in
FY 2013-14 was 6708.96 MU, inclusive of AEGCL (STU) loss, against the
approved energy requirement of 6063 MU. APDCL further submitted that they
were compelled to procure additional power than the approved quantum to
mitigate higher demand at low voltage level having highest T&D loss.
In the truing up for FY 2013-14, the Commission has approved the energy
requirement on the basis of approved sales and approved level of distribution
losses, and the level of transmission loss approved for AEGCL for this year.
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The gross energy requirement for FY 2013-14 as approved by the Commission in
the respective Tariff Order, as submitted by APDCL, and as approved in the truing
up, are shown in the following Table:
Table 4.3:Energy Requirement for FY 2013-14 (MU)
Particulars Unit
FY 2013-14
Approved vide MYT
Order dated
November 21, 2013
Proposed by
APDCL
Approved in Truing
Up for FY 2013-14
Energy Sale MU 4605.00 4763.21 4763.20
Distribution Losses MU 1052.00 1513.62 1088.40
% 18.60% 24.11% 18.60%
Energy Requirement MU 5657.00 6276.82 5851.60
Transmission Loss MU 241.00 266.99 248.90
% 4.08% 4.08% 4.08%
Total Energy Input at AEGCL boundary
MU 5898.00 6543.81 6100.50
Trading Sale/Export under PSA (MU)
MU - - -
Energy Available for Sale (MU)
MU - - -
Pooled loss of PGCIL
MU 165.00 165.15 165.15
Total Energy Requirement
MU 6063.00 6708.96 6265.65
The Commission approves the energy requirement of 6265.65 MU in the
truing-up for FY 2013-14
4.6 POWER PURCHASE
APDCL submitted that during the year under reference, the total generation
capacity of APGCL‟s generating stations was allocated to APDCL. In addition, the
share of capacities of Central Sector Generating Stations (CSGS) allocated to the
State of Assam, were also obtained. APDCL further submitted that based on the
above allocation, if there is surplus of power then it sells the power to other
agencies and if there is deficit of power, then additional power is procured from
other agencies. APDCL also submitted that since the demand is not constant and
it varies from time to time, the actual power purchase from allocated capacities of
the generators is different from the allocation. APDCL also stated that at times, it
draws more than its allocated share of power while at other times it draws less
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than its allocated share of power based on demand and supply situation.
However, in order to minimize power purchase cost, APDCL adopts the Merit
Order Dispatch principles on energy charge for dispatching power from the
generating stations based on the demand and allocation to APDCL.
Based on the same, the comparison of the actual power purchase cost as
submitted by APDCL and as approved by the Commission in the MYT Order dated
November 21, 2013, is shown in the Tables below:
Table 4.4: Actual Power Purchase Quantum and Cost for FY 2013-14 as submitted by APDCL
Sources
Energy (MU) Amount (Rs. Crore)
Approved in MYT
order dated November 21, 2013
Proposed by
APDCL
Approved in
MYT order
dated
November 21,
2013
Proposed by
APDCL
Central Sector Generators
3564.73 3864.93 1053.52 1296.89
APGCL 1713.76 1723.69 495.11 528.99
Adamtila & Banskandi(SIPP)
52.05 0.00 13.75
MeSEB 18.03 20.25 7.27 7.69
NCE Sources 70.63 36.84 32.50 15.49
IOCL 8.50 25.37 2.97 8.74
Trading Purchase 290.00 1050.46 71.05 294.77
UIPool 0.00 181.85
19.70
Total 6063.39 6903.39 1676.16 2172.27
APDCL submitted that the variation between the approved and the actual power
purchase expenses is on account of various reasons including change in sources
of power, change in cost of power and change in quantum of power purchased.
APDCL submitted that the deviation is mainly driven by the effectuation of revised
gas price with effect from June 2010 for the gas based thermal stations vis-à-vis
CERC Tariff Order for the Control Period from FY 2008-09 to FY 2013-14 for
various stations.
APDCL further submitted that although the Government of Assam has provided
support of Rs. 37.00 Crore for additional power procurement, the same has been
treated as other subsidy and netted off from the total claim. APDCL submitted that
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the quantum of power purchase depends upon the sales during the year as well
as the distribution losses in the system. APDCL submitted that since distribution
losses on its network have been higher than the approved level, hence, the
quantum of power actually purchased is slightly higher than the power that would
have been required to be bought at the approved distribution loss level. APDCL
submitted that there has been a marginal increase in the costs due to the above
factor, which otherwise would have been avoided had the desired level of
distribution loss been achieved.
APDCL also submitted that after the Commission notified FPPPA regulation in
December, 2011 with prospective effect, an amount of Rs. 375.19 Crore FPPPA
recovery by virtue of AERC FPPPA Regulation, 2010 has been included as a part
of total revenue.
APDCL submitted that the actual power purchase expenses have been higher to
the extent of Rs.513.34 Crore in FY 2013-14, without adjusting the GoA support of
Rs.37.00 Crore and requested the Commission to pass this amount to the
consumers after apportioning the controllable loss on account of higher distribution
loss as per the methodology prescribed by the Commission.
The Commission has verified the actual power purchase expenses as reported in
the Audited Statement of Accounts of APDCL for FY 2013-14, and has considered
the same as the total actual power purchase expenses incurred by APDCL.
As stated earlier, for the purpose of truing up for FY 2013-14, the Commission has
considered the distribution losses at the same level as approved by the
Commission in the respective Tariff Orders and has disallowed the excess power
purchase cost incurred by APDCL on account of the actual Distribution Loss being
higher than the approved Distribution Loss. The Commission has computed the
allowable power purchase requirement and power purchase cost, in accordance
with the energy requirement and energy balance approved in the earlier section,
and considering the actual rates of power purchase as incurred by APDCL.
Further, the Commission has approved the power purchase cost by considering
only the quantum of power purchase required for sales within the State, and has
disallowed the power purchase expenses on account of the excess losses. Thus,
it is clarified that the cost of the excess distribution losses are not passed on to the
consumers, and have to be borne by APDCL itself. APDCL has to take strenuous
efforts to reduce the distribution losses, in order to ensure that it is able to recover
the entire power purchase cost incurred by it.
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Further, the Commission has disallowed the amount of Rs. 62.3 Crore in power
purchase cost on account of interest paid by APDCL for delayed payment of
power purchase cost as per Audited Statement of Account for FY 2013-14.
The comparison of the power purchase cost approved in the respective Tariff
Order, actual power purchase cost incurred by APDCL, and the power purchase
cost approved by the Commission after truing up for FY 2013-14, is shown in the
Tables below:
Table 4.5: Approved Power Purchase Cost Truing up for FY 2013-14 (Rs.
Crore)
Particulars
Approved vide MYT
Order dated November
21,2014
Proposed by APDCL
Approved for Truing up of FY
2013-14
Power Purchase Cost including AEGCL Transmission cost
2134.26 2647.60
2412.54
Energy purchase submitted by APDCL(MU)
6708.96
Energy purchase approved in Truing up of FY 2013-14(MU)
6265.65
Power Purchase Cost approved for truing up for FY 2013-14 (Rs. Crore)
2412.54
Accordingly, the Commission approves power purchase cost of Rs. 2412.54
Crore in the truing up for FY 2013-14.
4.7 OPERATION AND MAINTENANCE (O&M) EXPENSES
APDCL submitted that the Operation and Maintenance (O&M) Expenses
comprises of the following elements:
(i) Employee Expenses
(ii) Repair and Maintenance (R&M) Expenses
(iii) Administrative and General (A&G) Expenses
APDCL submitted that during FY 2013-14, it has incurred O&M Expenses of Rs.
660.58 Crore which is inclusive of Employee Expenses, Repair & Maintenance
Expenses and Administration & General Expenses.
APDCL submitted the comparison of actual O&M Expenses and O&M Expenses
approved by the Commission for FY 2013-14, as shown in the following Table:
Table 4.6:O&M Expenses for FY 2013-14 as submitted by APDCL (Rs. Crore)
71
Particulars
FY 2013-14
Approved vide MYT Order
dated November21,2014 Proposed by
APDCL
Employee Expenses 537.98 560.64
Repair & Maintenance Expenses
35.25 69.09
Administrative & General Expenses
16.88 30.85
Total O&M Expenses 590.11 660.58
As can be seen from the table above, the actual Employee Expenses, R&M
Expenses and A&G Expenses are higher than the approved expenses by Rs.
70.47 Crore in FY 2013-14. The truing up of each head of O&M Expenses is
discussed in the following paragraphs.
4.7.1 Employee Expenses
APDCL submitted that Employee Expenses comprise of salaries, dearness
allowance, bonus, terminal benefits in the form of contribution for pension and
gratuity funding, leave encashment, and staff welfare expenses. APDCL submitted
that the increase in employee cost over the employee cost in the previous year
was due to the impact of CPI based Dearness Allowances, and marginal impact
due to new recruitments at different levels to take up the operation and
maintenance of new assets created and likely to be created in the coming days.
The Commission had approved the Employee Expenses at Rs. 537.98 Crore for
FY 2013-14 vide MYT Order dated November 21,2014. The Employee Expenses
as per Audited Statement of Accounts are Rs. 560.65 Crore for FY 2013-14. It is
observed that the Employee Expense has increased at the rate of 8.09% over the
FY 2012-13 trued up level, which is lower than the derived inflation index.of
8.42%..
Accordingly, the Commission approves the Employee Expenses for Rs.
560.65 Crore in the truing up for FY 2013-14.
4.7.2 Repair and Maintenance Expenses
APDCL submitted that R&M Expenses are incurred for daily upkeep of the
distribution network and forms an integral part of the company‟s efforts towards
reliable and quality power supply.
72
APDCL submitted that R&M Expenses are dependent on various factors. APDCL
further submitted that its assets are old and require regular maintenance to ensure
uninterrupted operations. APDCL also submitted that it has been trying its best to
ensure uninterrupted operations of the system and accordingly has been
undertaking necessary expenditure for R&M activities. Considering this fact,
APDCL submitted that the expenditure incurred on R&M activities are
uncontrollable in nature.
The Commission had approved the R&M Expenses at Rs. 35.25 Crore for FY
2013-14 vide MYT Order dated November 21, 2014. The actual R&M Expenses
of Rs. 69.09 Crore, as per Audited Statement of Accounts of FY 2013-14, seems
to have increased substantially as compared to the approved level.
In reply to Commission‟s query on reason for such increase in R & M Expense,
APDCL submitted that R & M Expense is linked to increase in fixed asset addition
over the years and considering the old age of assets under disposal of APDCL vis-
a-vis exigency situation faced by the utility R&M expense should be considered as
uncontrollable while truing up. APDCL also submitted that R & M Expense as a
percentage of Fixed Asset is 2-4%, which is within the limit of normative R&M as
set by other regulatory Commissions for this purpose.
The Commission is of the opinion that this substantial increase in R&M Expenses
in FY 2013-14 cannot be allowed as APDCL has not submitted proper justification
for such substantial increase. The AERC Tariff Regulations, 2006, does not lay
down any specific formula for computation of R&M Expenses. However, it is an
accepted convention that R&M Expenses are related to the value of GFA and
WPI. The Commission has observed that on an average, in the last five years (up
to FY 2012-13), the R&M Expenses as a percentage of GFA is 2.24%.
Considering the WPI rate of 5.98% in FY 2013-14, the R&M Expenses works out
to Rs. 42.82 Crore. (Opening GFA * 2.24%*(1+WPI)).
Accordingly, the Commission approves the R&M Expenses at Rs. 42.82
Crores for the truing up of FY 2013-14.
4.7.3 Administration and General Expenses
APDCL submitted that A&G Expenses mainly comprise of rents, telephone and
other communication expenses, professional charges, conveyance & travelling
allowance, and other debits.
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APDCL further submitted that as per the provisions of MYT Regulations, A&G
Expenses are controllable expenses and the actual A&G Expenses incurred by
APDCL has resulted into loss of Rs. 13.97 Crore FY 2013-14.
The Commission had approved the A&G Expenses at Rs. 16.88 Crore in the MYT
Order dated November 21, 2013. The A&G Expense is Rs. 30.85 Crore, as per
Audited Statement of Accounts for FY 2013-14.
In response to Commission‟s query on reason for such deviation in A & G
Expense, APDCL submitted that A&G Expenses are primarily governed by
Wholesale Price Index (WPI) including provisioning of other expenses for
expansion of offices to cater the supply obligation to all across Assam as well as
various occasional expenses for confirmed initiatives like IT Implementation etc.
After prudence check, it is understood that A & G Expense incurred during FY
2013-14 are of regular nature and hence allowable.
Accordingly, the Commission has approved A&G expense of Rs. 30.85 Crore
in the truing up for FY 2013-14.
4.8 DEPRECIATION
APDCL submitted that it has computed depreciation by taking into consideration
the opening and closing balance of assets for FY 2013-14. APDCL submitted that
in the Statement of Accounts for FY 2013-14, actual depreciation has been shown
as per Companies Act. However, for the purpose of truing up, APDCL has claimed
the same after re-calculating the depreciation in accordance with the AERC Tariff
Regulations, 2006.
APDCL further submitted that it has received no funding from grant for Fixed
Assets created out of grant and transferred to APDCL consequent to unbundling
of erstwhile ASEB as on April 01, 2005. As such, total depreciation on the opening
balance of GFA as on transfer scheme April 01, 2005 amounting to Rs. 28.03
Crore calculated at the weighted average rate of 3.66% is claimed in totality.
APDCL also submitted that Depreciation on subsequent assets is claimed after
apportionment of asset created out of grant, total amount of depreciation claimed
on this account is Rs. 3.90 Crore. As no depreciation has been charged on assets
created out of RGGVY, MNRE as well as consumer contribution, grant received
against such schemes are shown separately with no claim of depreciation.
74
The Commission had approved Rs. 6.08 Crore towards depreciation in the MYT
Order dated November 21, 2013. As against the same, APDCL had submitted Rs.
24.13Crore towards depreciation for FY 2013-14..
The Commission has considered the opening GFA for FY 2013-14 as per the
closing GFA value approved in True up of FY 2012-13 vide Tariff Order dated
November 21, 2014.
As per Regulation 14 of the AERC Tariff Regulations, 2006, the total depreciation
during the life of the asset shall not exceed 90% of the original cost of GFA. The
Commission has adjusted the depreciation amount contributed by assets
exceeding 90% of the value while calculating the depreciation for FY 2013-14.
Further, as specified in Regulation 14 of the AERC Tariff Regulations, 2006,
depreciation on the assets created using consumer contribution or capital
subsidy/grant, etc., is excluded.
Accordingly, the depreciation approved in the truing up for FY 2013-14 is given in
the Tables below:
Table 4.7: Depreciation approved in the truing up for FY 2013-14 (Rs. Crore)
Particulars GFA
01.04.2013 Addition during
FY 2013-14 Rate of
depreciation Depreciation FY
2013-14
Land & Rights 14.88 1.53
0.00
Building 49.00 1.27 1.80% 0.89
Hydraulic 0.00 0.00 2.57% 0.00
Other Civil Works 42.09 3.53 1.80% 0.79
Plant & Machinery 551.42 4.20 3.60% 14.33
Lines & Cable Net work 871.91 26.01 3.60% 16.88
Vehicles 11.67 0.18 18.00% 0.07
Furniture& Fixtures 12.83 0.75 6.00% 0.24
Office Equipment 21.89 0.77 6.00% 1.15
Other Items 227.14 16.04
0.00
Grand Total 1802.83 54.28
34.35
Average Depreciation Rate
2.12%
75
Particulars FY 2013-14
Grants Available 3569.20
90% of the grant 3212.28
GFA (excluding Consumer Contr. and Land & Rights) 1623.53
average CWIP 2634.65
Total 4258.18
Grants pertaining to GFA (Cumulative grants
apportioned in the ratio of GFA and CWIP)
1224.76
Depreciation calculated as per the Regulation on the
GFA 34.35
Weighted average rate of depreciation 2.12%
Depreciation to be deducted on the assets built on the
grants component 25.91
Depreciation approved 8.44
Accordingly, the Commission approves depreciation at Rs. 8.44 Crore in the
truing up for FY 2013-14.
4.9 INTEREST AND FINANCE CHARGES
APDCL submitted that the Commission, vide its MYT Order dated November 21,
2013, had allowed Rs. 28.89 Crore as Interest and Finance Charges for FY 2013-
14. APDCL also submitted that the actual interest and finance charges for FY
2013-14, on account of long-term debts invested in gross fixed assets, amounts to
Rs.114.19 Crore. APDCL submitted that it has considered the actual long-term
debt for calculation of Interest and Finance Charges and the weighted average
rate of interest on actual loan component, as shown in the following Tables:
Table 4.8: Actual Debt Capital as submitted by APDCL for FY 2013-14
(Rs. Crore)
Particulars Govt. Loan R-APDRP Total
Principal Amount outstanding
Outstanding at the beginning of the year
752.63 251.89 1004.52
Repayment made during the year 0.00 0.00 0.00
Balance 752.63 251.89 1004.52
Addition during the year 176.59 0.00 176.59
Outstanding at the end of the year 929.22 251.89 1181.11
Interest Due
Outstanding at the beginning of the year
266.79 42.49 309.28
76
Particulars Govt. Loan R-APDRP Total
Paid/Adj. during the year 0.00 0.00 0.00
Balance 266.79 42.49 309.28
Addition during the year 87.53 28.97 116.50
Outstanding at the end of the year 354.32 71.46 425.77
Total Debt Capital
Outstanding at the beginning of the year
1019.42 294.38 1313.80
Paid during the year 0.00 0.00 0.00
Balance 1019.42 294.38 1313.80
Addition during the year 264.12 28.97 293.09
Outstanding at the end of the year 1283.54 323.35 1606.89
Table 4.9: Interest and Finance Charges as submitted by APDCL (Rs. Crore)
Particulars Proposed by APDCL
Total long-term loans 1313.80
Total Interest on long-term loan 116.50
Average Interest Rate (%) 8.87%
Long-term loans for tariff 1313.80
Interest expenses 116.50
Other Interest and Finance charges
a. Interest on GPF 28.90
b. Interest on NPS 3.02
c. Other Finance Charges 5.50
d. Discount to consumers for timely payment of bill
0.33
Less Interest Capitalized 40.06
Total Interest & Finance Charges 114.19
APDCL submitted that the GPF contribution received from its employees attracts
interest liabilities of Rs. 28.90 Crore for FY 2013-14, as shown in the table above
and therefore, the same has also been considered as a debt source for funding of
capital assets.
Firstly, the Commission would like to make it clear that APDCL's approach of
adding the interest liability to the outstanding principal is totally incorrect, as the
interest liability has to be paid every year, and the Commission has been allowing
the prudently incurred interest expense every year, hence, APDCL should pay the
77
interest rather than adding the interest payment due every year to the outstanding
debt capital.
The Commission has examined the component-wise interest charges as per the
Audited Statement of Accounts for FY 2013-14 and has allowed the interest
charges on State Government and R-APDRP loans, other finance charges and
discount to consumers. The Commission has disallowed the interest on GPF and
NPS, in accordance with the approach followed in previous Tariff Orders, since,
APDCL has not created any appropriate fund for the purpose. Further, it is clarified
that the Trust has to be created for GPF and NPS purpose and the funds needs to
be invested appropriately, and the interest on same cannot be considered as a
debt source for funding of capital assets as being considered by APDCL. The
capitalisation of interest has been approved in proportion of interest on loans
booked and interest expense approved.
The interest and finance charges approved by the Commission in the truing up for
FY 2013-14 is given in the Table below:
Table 4.10: Approved Interest and Finance Charges (Rs. Crore)
Particulars FY 2013-14
GoA loan R-APDRP loan Total
Opening Balance 195.77
251.89
447.66
Addition 89.19
-
89.19
Repayment -
-
-
Closing Balance 284.96
251.89
536.85
Average rate of Interest 10.00%
11.50%
Interest 24.04
28.97
53.00
Discount to consumers 0.34
Other Finance Charges 0.65
Less: Interest Capitalised 18.23
Total Interest and Finance Expenses
35.77
Accordingly, the Commission approves Interest and Finance Charges at Rs.
35.77 Crore in the truing up for FY 2013-14.
78
4.10 INTEREST ON WORKING CAPITAL
APDCL submitted that Interest on Working Capital has been calculated on
normative basis in accordance with the AERC Tariff Regulations, 2006. APDCL
further submitted that the working capital requirements of the Company are
generally financed through internal mobilization of funds and the funds are liable
to receive adequate return for the application of funds.
APDCL submitted that the normative values of the components of working capital
requirement as per revised claims have been considered for the calculation of
Interest on Working Capital. For computing Interest on Working Capital, APDCL
has considered the rate of interest at 14.75% which is the short-term PLR of SBI.
Table 4.11: Interest on Working Capital as submitted by APDCL (Rs. Crore)
Particulars Approved in MYT order
dated November 21, 2013 Proposed
O&M Expenses- One month 53.83 55.05
Maintenance spares at 1% of GFA 20.82 18.03
Receivables for 60 days 433.62 443.43
Less: consumer security deposit 324.89 324.92
Total Working Capital 183.38 191.59
Rate of Interest on WC 14.75% 14.75%
Interest on Working Capital 27.05 28.26
The Commission has approved the Interest on working capital, considering SBI
PLR of 14.45%, as per AERC Tariff Regulations, 2006, and is shown in the Table
below,
Table 4.12: Approved Interest on Working Capital for FY 2013-14 (Rs. Crore)
Particulars Approved
O&M Expenses- One month 52.86
Maintenance spares at 1% of GFA 18.03
Receivables for 60 days 434.33
Less: consumer security deposit 325.58
Receivable excluding consumer security deposit
108.75
Working Capital 179.64
Rate of Interest on WC as on April 01, 2013
14.45%
Interest on Working Capital 25.96
Accordingly, the Commission approves Interest on working capital at Rs.
25.96 Crore in the truing up of FY 2013-14.
79
4.11 INTEREST ON CONSUMER SECURITY DEPOSIT
The Commission, in its MYT Order for FY 2013-2014 to 2015-2016, approved the
interest on consumer security deposit as Rs. 32.17Crore for FY 2013-14.
The provision of Interest on Consumer Security Deposit as per the Audited
Statement of Accounts is Rs.32.49 Crore FY 2013-14. However, as per APDCL's
submission, the actual payment of Interest on Consumer Security Deposit during
FY 2013-14 is Rs. 4.92 Crore. Accordingly, the Commission considers it
appropriate to approve the actual interest paid. However, APDCL has to ensure
that all the consumers are paid the accrued interest on consumer security deposit,
in future
Accordingly, the Commission approves Interest on Consumer Security
Deposit at Rs. 4.92 Crore for FY 2013-14.
4.12 PROVISION FOR BAD AND DOUBTFUL DEBTS
APDCL submitted that the Commission had not approved any amount in MYT
Order dated November 21, 2013, towards provision for bad debts and has
considered the same as controllable. APDCL submitted that it has incurred actual
bad debts amounting to Rs 41.14 Crore FY 2013-14 as per Audited Statement of
Accounts.
The Commission has not considered the claim of APDCL for provision for bad
debts. This high figure cannot be allowed in absence of proper justification for non-
recovery of the arrears.
Accordingly, the Commission approves provision for bad and doubtful
debts as NIL in the truing up for FY 2013-14
4.13 OTHER DEBITS
APDCL submitted that the Commission has not approved any amount as other
debits. The element-wise break up of expenses booked under other debits, as
submitted by APDCL is detailed below:
Table 4.13: Other Debits as submitted by APDCL (Rs. Crore)
Particulars
FY 2013-14
Approved vide MYT Order dated
November 21, 2013
Proposed by APDCL
Compensation for injuries, deaths, and damage of outsiders
0.00 0.79
Bad and doubtful Debt written off 0.00 0.51
80
Particulars
FY 2013-14
Approved vide MYT Order dated
November 21, 2013
Proposed by APDCL
Sundry Debit balance written Off 0.00 0.67
Materials cost variance 0.00 1.39
Loss on Flood, Cyclone ,Fire etc. 0.00 0.80
Total 0.00 4.15
The Commission had not approved any provision for Other Debits for FY 2013-14
in the MYT Order dated November 21, 2013. The Commission has verified the
above mentioned expense item as submitted by APDCL and has found expense
incurred due to flood, Cyclone and fire are justified and asked APDCL to submit
related supporting documents for this expense. APDCL has submitted order
copies for disaster management in support of its claim. The Commission also
considers Compensations for injuries, deaths, and damage of outsiders are also
justified. Accordingly, after prudent check and analysis, the Commission approves
Rs 1.59 Crore for loss on Flood, cyclone and Fire and compensation for injuries.
Accordingly, the Commission approves Other Debits at Rs. 1.59 Crore for FY
2013-14 in the truing up.
4.14 NET PRIOR PERIOD EXPENSES
APDCL submitted that an amount of Rs. 18.70 Crore has been accounted for as
prior period expenses/income on account of employee cost, depreciation, interest
and other income.
The Commission has after prudent check and analysis, disallowed prior period
depreciation expense as the Commission has allowed depreciation to APDCL in
past as per AERC Tariff Regulations, 2006. The Commission has considered rest
of the expense/ income items for truing up of FY 2013-14.Item wise amounts as
submitted by APDCL and approved by Commission are depicted in the Table
below:
Table 4.14: Prior Period Expenses/Charges approved by the Commission for
FY 2013-14 (Rs. Crore)
Particulars FY 2013-14
Expenses Audited Statement of
Accounts Trued Up
Operating losses for prior period
81
Particulars FY 2013-14
Expenses Audited Statement of
Accounts Trued Up
Employee cost relating to prior period -0.05 -0.05
Prior period depreciation 2.63
Interest relating to prior period -20.98 -20.98
Other Charges relating to prior period
0
Sub-total expenses -18.40 -21.03
Income
0
Interest income for prior period
0
Excess provision in prior period
0
Other Income relating to prior period 0.30 0.3
Sub-total Income 0.30 0.3
0
Net Prior period expenses/(Income) -18.70 -21.33
Accordingly, the Commission approves net prior period income at Rs. 21.33
Crore in the truing up for FY 2013-14, respectively.
4.15 RETURN ON EQUITY
APDCL submitted that as per the AERC Tariff Regulations, 2006, a return at the
rate of 14% on the Equity base has been considered as reasonable and hence,
the same is liable to be recovered through the retail Tariff. APDCL submitted that
the Commission, vide MYT Order dated November 21, 2013, has allowed Return
on Equity (RoE) only at the rate of 14%. APDCL submitted that it has computed
Return on Equity after considering the Equity capital, as Rs. 251.45 Crore, at a
rate of return of 14%. The Return on Equity amounting to Rs. 35.20 Crore FY
2013-14, as claimed by APDCL, is shown in the following Table:
Table 4.15: Return on Equity for FY 2013-14 as submitted by APDCL (Rs. Crore)
Particulars Approved in MYT Order FY 2013-14 to 2015-16
APDCL proposed
Average Equity Capital for FY2013-14
162.77
251.45
Rate of ROE 14.00% 14.00%
ROE for FY 2013-14
22.79
35.20
The Commission had approved Return on Equity at 14%, amounting to
Rs. 22.79 Crore for FY 2013-14 in the MYT Order dated November 21, 2013. As
82
per the AERC Tariff Regulations, 2006, Return on Equity shall be computed on the
actual Equity Capital employed in the business or 30% of the GFA of that year,
whichever is lower.
As per the Audited Statement of Accounts of FY 2013-14, the Equity amount of
APDCL is Rs. 162.77 Crore. As against the same, APDCL‟s claim of Rs. 251.45
Crore as Equity Capital includes Rs. 88.68 Crore towards Share Application
Money Pending Allotment.
The Commission has not considered the Rs. 88.68 Crore of Share Application
Money Pending Allotment as part of Equity for computation of RoE. As such, no
Equity infusion over the amount approved in the MYT Order dated November 21,
2013, has been considered, for FY 2013-14.
Accordingly, Commission retains the ROE at Rs. 22.79 Crore in the Truing
up for FY 2013-14.
4.16 PROVISION FOR TAXES
APDCL, in its truing up Petition for FY 2013-14, submitted that as there is no
Income Tax liability, it has not claimed any expenses under the provision for taxes.
The Commission also considers provision for taxes as Nil for truing up of FY
2013-14.
4.17 NON TARIFF INCOME
The Commission had not approved any amount as Non Tariff Income in the MYT
Order dated November 21, 2013.
APDCL has submitted that it has earned Rs 18.43 Crore of Non Tariff Income
during FY 2013-14. APDCL submitted that the Non Tariff Income mostly
comprises of sale of surplus energy (through bilateral sale, through UI mechanism
and energy exchange) due to less demand in system in some period of a day or
season.
The Commission had not approved any Non Tariff Income for FY 2013-14 in the
MYT Order November 21, 2013. It should be noted that while approving the power
purchase cost at the time of truing up for FY 2013-14, only the energy requirement
for sale within the State only and the corresponding power purchase cost has
been allowed, as discussed in earlier Sections. Hence, the Commission has not
considered the Non Tariff Income on account of sale of surplus power, in the
truing up.
83
Accordingly, the Commission approves Non Tariff Income as Nil in the
truing up for FY 2013-14.
4.18 MISCELLANEOUS RECEIPTS/OTHER INCOME
APDCL submitted Miscellaneous receipts at Rs. 205.33 Crore for FY 2013-14.
The Commission had not approved any amount on account of miscellaneous
income in MYT Order dated November 21, 2013 but had approved Rs. 203.50
Crore as Other Income for FY 2013-14. The Other Income as per the Audited
Statement of Accounts for FY 2013-14 is Rs. 203.93 Crore.
Further in the schedule 2.18 of the Audited Statement of Accounts of FY 2013-14,
Rs. 1.40 Crore is booked as Revenue from Cross Subsidy Surcharge on Open
Access consumers under the head of Income from sale of power. Commission has
considered this Rs. 1.40 Crore also as part of Other Income for truing up of FY
2013-14.
Treatment of service charge under RGGVY
As submitted by APDCL, for implementing the RGGVY scheme, the Government
of India, provides APDCL , which is the project implementing agency, a service
charge of 8% of the project cost (excluding BPL) as service charge for
implementation of the project and for any payments to be made for third party
monitoring in first tier. As such, APDCL is entitled to receive accumulated amount
of Rs. 135.75 Crore as 8% of total project cost of Rs. 1995.13 Crores.
In this regard, C&AG had pointed out that for the FY 2012-13, there has been an
overstatement of losses because of non accountal of service charge, as per the
above amount. Further, based on the Audited Statement of Accounts for FY 2013-
14, the Principal Accountant General (Audit), Assam, had again pointed out the
non-compliance of APDCL for proper accounting of service charges received
under RGGVY. They have also calculated that based on the CWIP booked till FY
2013-14, the corresponding amount of Rs. 128.4 Crores should be booked as
Income up to the year FY 2013-14 for service charges received under RGGVY.
The Commission has taken a note of the above issues pointed by C&AG and also
the objections received in this regard. Accordingly, APDCL was directed to submit
the details of the amount received as service charges for RGGVY fund and the
corresponding amount booked in accounts under various heads. In response to
the query of the Commission, APDCL submitted that they have booked these
amount under "HQ Overhead Fund Capitalized" and as such the same has not
been booked under Revenue Head of Accounts. Based on the analysis of the data
84
submitted by APDCL and the Audited Statement of Accounts, it is observed that
APDCL has not booked the received amount under income but corresponding
amounts have been booked under expenses. Based on the observations of
C&AG, the Commission considers Rs.128.40 Crore as part of Other Income for FY
2013-14.
Accordingly, the Commission approves the Other Income at Rs. 333.73
Crore (203.93+1.40+128.40) for the truing up of FY 2013-14.
4.19 REVENUE FROM SALE OF POWER
APDCL submitted that it has earned revenue of Rs. 2642.15 Crore (including Rs.
375.19 Cr as FPPPA) for FY 2013-14. APDCL submitted that it has considered the
same for finding out the revenue gap for FY 2013-14 along with Non-Tariff Income
from energy sale of surplus availability to be passed on to the consumers.
The revenue from sale of power (including FPPPA) for FY 2013-14 is Rs. 2661.99
Crore as per the Audited Statement of Accounts for FY 2013-14. The Commission
has arrived on an amount of Rs. 2642.16 Crore after deducting non tariff income
of Rs. 18.43 Crore on account of trading income and Rs. 1.4 Crore on account of
revenue from Cross Subsidy Surcharge on Open Access consumers.
Accordingly, the Commission approves the Revenue from sale of power at
Rs. 2642.16 Crore for truing up of FY 2013-14.
4.20 GOVERNMENT SUBSIDY
APDCL submitted that during FY 2013-14, it has received a total of Rs 165.22
Crore as Government Subsidy, the details of the same is shown below:
Revenue Subsidy/Grant for FY 2013-14 Amount (Rs Crore)
Government Grant as a support for additional Power Purchase 37.00
Targeted Subsidy for effective period during FY 2013-14 28.22
Revenue Subsidy for reducing past year's revenue gap 100.00
Total 165.22
As per the Audited Statement of Accounts of FY 2013-14 the total Government
Subsidy received during FY 2013-14 is Rs 165.22 Crore.
Accordingly, Commission approves Rs. 165.22 Crore as Government
Subsidy for truing up of FY 2013-14.
85
4.21 TRUE UP OF ARR FOR FY 2013-14
The ARR for FY 2013-14, based on the audited annual accounts and as analysed
in the above paragraphs, is summarized in the Table below:
ARR Elements
Approved vide MYT Order
dated November 21, 2013
Proposed in this petition
Approved/ True Up Revised
Power Purchase (MU) 6063.39 6708.96 6265.65
Sales (MU) 4605 4763.20 4763.20
Distribution Losses 18.60% 24.11% 18.60%
Cost of Power Purchase 2134.26 2647.60 2412.54
Employee cost 537.98 560.64 560.65
Repair & Maint. Expenses 35.25 69.09 42.82
Admin.& Gen. Exp. 16.88 30.85 30.85
Depreciation 6.08 24.13 8.44
Interest & Finance charges 28.89 114.19 35.77
Interest on working Capital 27.05 28.26 25.96
Interest on CSD 32.17 32.49 4.92
Provision for Bad Debts 0 41.14 0
Bad debts written off 0 - -
Net prior period expenses 0 (18.70) (21.33)
Other debits 0 4.15 1.59
Return on Equity 22.79 35.20 22.79
True Up Adjustments as per MYT Order dated November 21, 2013
230.00 230.00 230.00
Total expenditure 3071.35 3799.04 3354.98
Less: Non Tariff Income 0.00 18.43 0.00
Less: Other Income/Misc. Receipt 203.50 205.33 333.73
Less: Revenue/ Targeted and other Subsidy
100.00 165.22 165.22
Net ARR 2767.84 3410.06 2856.03
Revenue from Sale of Power 2767.84 2642.15 2642.16
Revenue Deficit (+)/(Surplus) (-) 0.00 767.90 213.87
Accordingly, Revenue Deficit of Rs. 213.87 Crore, approved in the truing up
for
FY 2013-14 as shown in the above table, has been considered in the ARR for
FY 2015-16.
86
5. Annual Performance Review for FY 2014-15
5.1 INTRODUCTION
The Tariff Order for FY 2014-15 for APDCL was issued by the Commission on
November 21, 2014. Before issuing the next Tariff Order, it is important for the
Commission to review the technical as well as financial performance of APDCL
vis-à-vis the Tariff Order issued by the Commission for this year. Also, it is
pertinent and desirable that the Commission reviews its own estimation to ensure
better and effective implementation of its next Tariff Order.
The review examines technical and financial performance of APDCL in FY 2014-
15 with the figures approved for FY 2014-15 in the Tariff Order dated November
21, 2014. The exercise also attempts to gauge the effectiveness of the last Tariff
Order by evaluating the actual performance as against the targets set in the last
Tariff Order. These aspects are discussed in the following paras.
5.2 ENERGY SALES
APDCL has estimated the category-wise energy sales of 5475.94 MU for FY
2014-15, as against the approved sales of 5221 MU for FY 2014-15 vide Tariff
Order dated November 21, 2014. APDCL submitted that although the deviation
from approved sale quantum is nominal, significant deviation has been observed
in some of the category of consumers. The consumer profile of APDCL has
experienced significant increase in low end consumers, with the proper
implementation of RGGVY. In case of Jeevan Dhara category of consumers only,
24.57% increase in number of consumers over last FY 2013-14, is projected
considering the scheduled completion time.
It may be seen that, APDCL has reported significant increase in the actual sales to
Jeevan Dhara and Domestic A category, Also, the actual sales to HT Industries II
(above 150 kVA) and Oil and Coal consumer category has been higher than that
approved by the Commission in the Tariff Order dated November 21, 2014.
Overall, the actual sales have been higher than that approved by the Commission
in the Order dated November 21, 2014, by 254.94 MU.
For estimating the sales of Jeevan Dhara category, the Commission has
calculated the consumption based on the monthly consumption of 30 units per
87
consumer and the estimated number of total consumers. As such, the excess
consumption reported under Jeevan Dhara has been considered under Domestic
A category. For other categories, the Commission has accepted the APDCL
proposal of sales.
The energy sales as proposed by APDCL and approved by the Commission for
APR are given in the Table below:
Table 5.1:Energy Sales for FY 2014-15 (MU)
Consumer Categories Sales approved in vide Tariff
Order dated November 21, 2014 (MU)
APDCL Proposal
APR
Jeevan Dhara CL 0.5 kW & 1 kWh/day
409.00 551.00 379.78
Domestic A (above 0.5 kW to 5 kW) 1567.00 1710.00 1881.22
Domestic B (above 5 kW to 20 kW) 219.00 208.02 208.02
Commercial (above 0.5 kW to 20 kW)
487.00 453.92 453.92
General Purpose Supply: CL upto 20 kW
111.00 111.47 111.47
Public Lighting 15.00 13.20 13.20
Agriculture: upto 7.5 HP 7.00 11.18 11.18
Small Industries- Rural (Upto 20 kW)
57.00 48.48 48.48
Small Industries- Urban 28.00 26.50 26.50
Temporary Supply 6.00 11.98 11.98
Total LT 2905.00 3145.74 3145.74
HT-Domestic - 25 kVA and above 45.00 38.78 38.78
HT-Commercial - 25 kVA and above 287.00 274.38 274.38
Public Water Works 76.00 75.85 75.85
Bulk Supply- Government Educational Institution
73.00 75.62 75.62
Bulk Supply-Others 395.00 382.26 382.26
HT Small Industry upto 50 kVA 25.00 22.57 22.57
HT Industry-I 50 kVA to 150 kVA 74.00 79.72 79.72
HT Industry above 150 kVA 817.00 859.69 859.69
Tea, Coffee and Rubber 408.00 386.88 386.88
Oil and Coal 86.00 106.76 106.76
HT- Irrigation above 7.5 HP 31.00 27.68 27.68
Total HT 2317.00 2330.19 2330.19
Total LT + HT 5221.00 5475.94 5475.94
Accordingly, the Commission considers 5475.94 MU as Energy Sale for the
purpose of APR of FY 2014-15.
88
5.3 DISTRIBUTION LOSSES
APDCL, in its Petition, submitted that in spite of taking various loss reduction
measures, APDCL could not achieve the approved distribution loss of 18.60% for
FY 2014-15.
APDCL estimated 20.16% as the Distribution Loss for FY 2014-15. APDCL
submitted that historical analysis reveals that APDCL was able to achieve the
approved loss level in spite of manifold increase in low end BPL consumers by
virtue of implementation of RGGVY since FY 2008-09.
APDCL also submitted that they have taken numerous steps for loss reduction
including CFL lamps for Rural consumers, Installation of 3 star transformers,
Monitoring of High value consumers, Undertaken Smart grid pilot project etc.
The high distribution losses of the distribution licensee have always been a cause
of concern to the Commission and several directives have been issued from time
to time to restrict the distribution losses. These include introduction of prepaid
meters, spot billing, MRI downloads for all HT and non- domestic consumers, etc.
However, the Commission notes that APDCL‟s efforts in this regard have not been
up to mark and APDCL will have to make conscious efforts to reduce the
distribution losses from the existing levels.
For FY 2014-15, in the review, the Commission has considered the distribution
losses approved in the Tariff Order dated November 21, 2014, for the purpose of
calculating the energy requirement and the power purchase expenses, thereby
not considering the excess power purchase cost incurred by APDCL on account of
the actual distribution losses being higher than the approved distribution losses.
The distribution losses approved in the Tariff Order dated November 21, 2014,
actual loss level as submitted by APDCL, and distribution loss considered by the
Commission for review purpose for FY 2014-15, are as given in the Table below:
Table 5.2: Distribution loss for FY 2014-15
Year Approved vide Tariff Order dated November 21, 2014
APDCL Proposal APR
FY 2013-14 18.60%
20.16%
18.60%
89
Accordingly, the Commission considers the Distribution Loss level at
18.60%, for the purpose of review for FY 2014-15.
5.4 ENERGY REQUIREMENT
APDCL submitted a total Energy requirement of 7393.23 MU for FY 2014-15 after
considering for sale to retail consumers inclusive transmission losses and export
of surplus quantum if any outside the state without affecting the peak demand of
the system against approved Energy requirement of 6832 MU.
Commission has approved the Energy requirement after considering the Energy
sales, Distribution & Transmission loss considered for APR. The detail is shown in
the table below:
Table 5.3:Energy Requirement for FY 2014-15 (MU)
Particulars
Unit
FY 2014-15
Approved in Tariff Order
dated November 21,
2014
APDCL Proposal
APR
Energy Sale MU 5221.00 5475.94 5475.94
Distribution Losses MU 1193.00 1382.93 1251.26
% 18.60% 20.16% 18.60%
Energy Requirement MU 6415.00 6858.87 6727.20
Transmission Loss MU 256.00 273.90 267.19
% 3.84% 3.84% 3.82%
Total Energy Input at AEGCL boundary
MU 6671 7132.77 6994.38
Trading Sale/Export under PSA (MU) MU
88.38
Energy Available for Sale (MU) MU
7221.15 6994.38
Pooled loss of PGCIL MU 161.17 172.08 172.08
Total Energy Requirement MU 6832 7393.23 7166.46
Accordingly, the Commission considers the Energy requirement of 7166.46
MU for APR of FY 2014-15.
5.5 POWER PURCHASE
The Commission vide MYT Order dated November 21, 2014, had approved 6832
MU of Power Purchase quantum at a cost of Rs. 2652.46 Crore for FY 2014-15.
APDCL submitted that, the total generation capacity of APGCL‟s generating
stations was allocated to APDCL, in addition to the allocation from Central Sector
90
Generating Stations (CSGS). APDCL further submitted that, based on the above
allocation, if there is surplus of power then it sells the power to other agencies and
if there is deficit of power, then power is procured from other agencies. APDCL
also submitted that since the demand is not constant and it varies from time to
time, the actual power purchase from allocated capacities of the generators is
different from the allocation. APDCL also stated that at times, it draws more than
its allocated share of power while at other times it draws less than its allocated
share of power based on demand and supply situation. APDCL also stated that it
resorts to Deviation Settlement Mechanism to mitigate any exigency of avoiding
load shedding vis a vis proper integrated system operation. However, in order to
minimize power purchase cost, APDCL adopts the Merit Order Dispatch principles
on energy charge for dispatching power from the generating stations based on the
demand and allocation to APDCL.
APDCL submitted that during FY 2014-15 they have purchased 7393.23 MU at a
total Power Purchase cost of Rs. 2943.94 Crore (including basic power purchase
cost and transmission charges payable to AEGCL (inclusive of PGCIL charges,
Special Charge on BST etc.).
Table 5.4: Actual Power Purchase Quantum and Cost for FY 2014-15 as
submitted by APDCL
Sources
Energy ( MU) Amount (Crore)
Approved in Tariff Order dated
November 21, 2014
Submitted by APDCL
Approved in Tariff Order dated
November 21, 2014
Submitted by APDCL
Central Sector Generators 4444.39 4376.69 1405.96 1454.16
APGCL 1695.00 1688.67 548.83 531.03
Adamtila & Banskandi (SIPP) 0 0.00 0 0.00
MeSEB 20.22 18.03 9.28 9.83
NCE Sources 117.94 75.95 72.44 67.87
IOCL 25.04 46.72 8.74 17.50
Trading/ Bilateral Purchase 529.35 917.28 144.68 291.02
UI Pool 0 269.88 0 90.69
MTOA (GCEL)
Total Power Purchase Cost 6831.94 7393.22 2189.93 2462.10
Add: Transmission and SLDC cost
462.52 481.84
Total Power Purchase Cost including Transmission and SLDC cost
2652.45 2943.94
91
APDCL submitted that the variation between the approved and the actual power
purchase expenses is on account of various reasons including change in sources
of power, change in cost of power and change in quantum of power purchased.
APDCL submitted that the deviation is mainly driven by the effectuation of revised
gas price with effect from November 2014 for the gas based thermal stations vis-
à-vis various CERC Tariff Order from time to time for various CPSU stations.
APDCL also submitted that the quantum of power purchase depends upon the
sales during the year as well as the distribution losses in the system. Since
distribution losses on APDCL‟s network have been higher than the approved level,
the quantum of power actually purchased is slightly higher than the power that
would have been required to be bought at the approved distribution loss level.
APDCL submitted that there has been a marginal increase in the costs due to the
above factor, which otherwise would have been avoided, had the desired level of
distribution loss been achieved.
For APR of FY 2014-15, the power purchase cost has been computed by
considering the energy requirement of 7166.46 MU.
Table 5.5: Power Purchase Cost for APR of FY 2014-15 (Rs. Crore)
Approved for FY 2014- 15 vide Tariff Order dated November 21, 2014
Energy (MU)
Amount (Crore)
Total Power Purchase including Transmission and SLDC cost
7166.46 2834.91
Accordingly, the Commission considers power purchase cost at Rs. 2834.91
Crore for the purpose of APR of FY 2014-15. However, Commission will
conduct prudent check at the time of truing up of FY 2014-15 based on
Audited Statement of Accounts.
5.6 OPERATION AND MAINTENANCE (O&M) EXPENSES
For considering the year-on-year inflation for projecting O&M expenses in FY
2014-15, the Commission has considered CPI as the inflation index for Employees
Expenses and WPI as the inflation index for A&G Expenses and R&M expenses.
The Commission considers this method to be reasonable for projecting the O&M
Expenses in FY 2014-15. The CPI and WPI for FY 2014-15 are shown below:
Tabe 5.6: Inflation Indices for O&M Expenses
WPI CPI
92
Month FY 14
FY 15
FY 16
FY 14
FY 15
FY 16
April 171 181
226 242
May 171 182
228 244
June 173 183
231 246
July 176 185
235 252
August 179 186
237 253
September 181 185
238 253
October 181 184
241 253
November 182 181
243 253
December 180 179
239 253
January 179 177
237 254
February 180 176
238 253
March 180.3 176
239 254
Average 178 181
236 251
2.00% 2.00% 6.29% 6.29%
5.6.1 Employee Expenses
The Commission had approved the Employee Expenses at Rs. 609.65 Crore for
FY 2014-15 vide Tariff Order dated November 21, 2014. APDCL, in the Petition,
submitted the revised claim of Rs. 641.36 Crore for FY 2014-15.
For APR of FY 2014-15, the Commission has arrived on a provisional figure of Rs.
595.89 Crore based on trued up Employee Expense for FY 2013-14 and
escalated by CPI @6.29% for FY 2014-15.
The Commission provisionally considers the Employee Expenses at Rs.
595.89 Crore for FY 2014-15. The Commission shall true-up Employee
expenses for FY 2014-15 based on the prudence check of Audited Statement
of Accounts for FY 2014-15.
5.6.2 Repair and Maintenance Expenses (R & M Expenses)
The Commission had approved the Repair and Maintenance expenses at Rs.
46.66 Crore for FY 2014-15 vide Tariff Order dated November 21, 2014. APDCL
submitted
the revised claim of Rs. 74.62 Crore for FY 2014-15, which is substantially higher
than the approved figures.
For computation of R&M Expenses for APR of FY 2014-15, the Commission has
adopted the same approach as adopted for Truing up of FY 2013-14 and
considering the WPI of 2%.
93
The Commission considers the R&M Expenses at Rs. 42.45 Crore for APR of
FY 2014-15. However, the Commission shall true-up R&M Expenses for FY
2014-15 based on the prudence check of Audited Statement of Accounts.
5.6.3 Administration and General Expenses (A & G Expenses)
The Commission had approved the Administration and General Expenses at
Rs. 30.93 Crore for FY 2014-15 vide Tariff Order dated November 21, 2014.
APDCL submitted the revised claim of Rs. 32.70 Crore for FY 2014-15.
For APR of FY 2014-15, the Commission has arrived on a provisional figure of Rs.
31.47 Crore for FY 2014-15 based on trued up A&G expense for FY 2013-14 and
escalated by WPI @2% for FY 2014-15.
The Commission considers the A&G Expenses at Rs. 31.47 Crore for APR of
FY 2014-15. However, the Commission shall true-up A&G Expenses for FY
2014-15 based on the prudence check of Audited Statement of Accounts.
5.7 DEPRECIATION
The Commission had approved the Depreciation charges at Rs. 7.85 Crore for
FY 2014-15 vide Tariff Order dated November 21, 2014. APDCL has submitted
the revised claim of Rs. 31.25 Crore against Depreciation for FY 2014-15.
The Commission has considered the opening GFA for FY 2014-15 as per the
closing GFA value approved in True up of FY 2013-14 above. The additions of the
assets have been taken as per the value proposed by APDCL.
As per Regulation 14 of the AERC Tariff Regulations, 2006, the total depreciation
during the life of the asset shall not exceed 90% of the original cost of GFA. The
Commission has reversed the depreciation amount contributed by assets
exceeding 90% of the value while calculating the depreciation for FY 2014-15.
Further, as specified in Regulation 14 of the AERC Tariff Regulations, 2006,
depreciation on the assets created using consumer contribution or capital
subsidy/grant, etc., is excluded.
Table 5.6:: Depreciation for FY 2014-15 (Rs. Crore)
Particulars GFA 01.04.2014
Addition during the year
Rate of depreciation
Depreciation FY 2014-15
Land & Rights 16.41 1.36
0.00
Building 50.27 1.31 1.80% 0.92
Hydraulic 0.00 0.00 2.57% 0.00
94
Particulars GFA 01.04.2014
Addition during the year
Rate of depreciation
Depreciation FY 2014-15
Other Civil Works 45.62 1.85 1.80% 0.84
Plant & Machinery 555.62 6.92 3.60% 14.53
Lines & Cable Net work 897.92 19.63 3.60% 17.70
Vehicles 11.85 0.11 18.00% 0.08
Furniture& Fixtures 13.58 0.66 6.00% 0.28
Office Equipment 22.66 1.25 6.00% 1.21
Other Items 243.18 78.83
0.01
Grand Total 1857.11 111.92
35.57
Average Depreciation Rate
2.11%
Particulars FY 2014-15
Grants Available 3804.90
90% of the grant 3424.41
GFA (excluding Consumer Contr. and Land & Rights)
1687.72
average CWIP 3032.60
Total 4720.32
Grants pertaining to GFA (Cumulative grants apportioned in the ratio of GFA and CWIP)
1224.38
Depreciation calculated as per the Regulation on the GFA
35.57
Weighted average rate of depreciation 2.11%
Depreciation to be deducted on the assets built on the grants component
25.80
Depreciation approved 9.77
Accordingly, the Commission considers depreciation at Rs. 9.77 Crore in the
review for FY 2014-15. However the Commission shall true-up depreciation
for FY 2014-15 based on the prudence check of Audited Statement of
Accounts.
5.8 INTEREST AND FINANCE CHARGES
The Commission had approved the interest and finance charges at Rs. 8.70 Crore
for FY 2014-15 vide Tariff Order dated November 21, 2014. APDCL has submitted
the revised claim of Rs. 150.59 Crore as Interest and Finance charges for FY
2014-15 excluding Interest on Consumer Security Deposit.
95
The Commission has examined the component-wise interest charges as
submitted by APDCL and has considered the interest rate for State Government
loans & R-APDRP loans, other finance charges as per Truing up of FY 2013-14.
Further the Commission has considered the discount to consumers for timely
payment of bills as per submission of APDCL. The Commission has not
considered the interest on GPF Funds, in accordance with the approach followed
in previous Tariff Orders, since; APDCL has not created any Bonds for the
purpose. The opening balance in of loans has been taken as per the closing
balance of truing up for FY 2013-14. No addition in loan considered during FY
2014-15 because of inconsistency in data submitted by APDCL. Interest
capitalized has been calculated, based on the proposed ratio of APDCL for
Interest Capitalized and total Interest and Finance Charges.
The interest and finance charges considered by the Commission in the review for
FY 2014-15 is given in the Table below:
Table 5.7: Interest & Finance Charges considered for review of FY 2014-15 (Rs. Crore)
Particulars
FY 2014-15
GoA loan R-APDRP loan TOTAL
Opening Balance 284.96 251.89 536.85
Addition - - -
Repayment - - -
Closing Balance 284.96 251.89 536.85
Average rate of Interest 10.00% 11.50% -
Interest 28.50 28.97 57.47
Discount to consumers 0.67
Other Finance Charges 0.65
Less: Interest Capitalised 16.59
Total Interest and Finance Expenses
42.20
Accordingly, the Commission considers the Interest and Finance Charges at
Rs. 42.20 Crore in the APR of FY 2014-15. The Commission shall true-up
Interest and Finance expense for FY 2014-15 based on the prudence check
of Audited Statement of Accounts.
96
5.9 INTEREST ON WORKING CAPITAL
The Commission had approved the Interest on Working Capital of Rs. 41.70 Crore
in the Tariff Order dated November 21, 2014. APDCL submitted the following
calculations for the normative Interest on Working Capital:
Table 5.8: Interest on Working Capital submitted by APDCL (Rs. Crore)
Particulars Approved vide
Tariff Order dated November 21, 2014
Proposed by APDCL
O&M Expenses- One month 57.27 62.39
Maintenance spares at 1% of GFA 18.57 18.57
Receivables for 60 days 602.66 674.68
Less: consumer security deposit 395.79 373.16
Working Capital 282.71 382.48
Rate of Interest on WC 14.75% 14.75%
Interest on Working Capital 41.70 56.42
As per the AERC Tariff Regulations, 2006, the Interest on Working Capital is
computed as shown in the Table below:
Table 5.9: Interest on Working Capital considered in APR for FY 2014-15 (Rs. Crore)
Particulars APR
O&M Expenses- One month 55.82
Maintenance spares at 1% of GFA 18.57
Receivables for 60 days 495.41
Less: consumer security deposit 373.83
Receivable excluding consumer security deposit
121.58
Working Capital 195.97
Rate of Interest on WC 14.75%
Interest on Working Capital 28.91
The Commission considers Interest on working capital at Rs. 28.91 Crore in
the APR of FY 2014-15.However The Commission shall true-up interest on
working capital for FY 2014-15 based on the prudence check of Audited
Statement of Accounts.
5.10 INTEREST ON CONSUMER SECURITY DEPOSIT
The Commission, in its Tariff Order dated November 21, 2014, had approved
Interest on Consumer Security Deposit at Rs. 4.92 Crore for FY 2014-15. APDCL
97
has claimed the Interest on Consumer Security deposit as Rs. 48.34 Crore for FY
2014-15.
As the provisional accounts for FY 2014-15 are not available, the
Commission has considered an amount of Rs. 4.92 Crore, as provision,
similar to the Trued Value of FY 2013-14. However, the Commission shall
true-up interest on security deposit for FY 2014-15 based on the prudence
check of Audited Statement of Accounts and actual payment made to
consumers.
5.11 PROVISION FOR BAD AND DOUBTFUL DEBTS
The Commission had not approved any provision for bad debts for FY 2014-15 in
its Tariff Order dated November 21, 2014. APDCL also not claimed any amount
under such head for FY 2014-15. The Commission also considers provision
for bad and doubtful debts as Nil in the review for FY 2014-15.
5.12 OTHER DEBITS
The Commission had not approved any Other Debits for FY 2014-15 in the Tariff
Order dated November 21, 2014. APDCL submitted the Other Debits at Rs. 7.25
Crore for FY 2014-15.
The Commission will take a view on whether such expenses are allowable to be
recovered from the ARR, once the Audited Statement of Accounts for FY 2014-15
are available.
The Commission considers Other Debits as Nil in the APR of FY 2014-15.
5.13 NET PRIOR PERIOD EXPENSES
APDCL has not claimed any amount under this head for FY 2014-15. The
Commission also considers net prior period expenses as Nil in the APR of
FY 2014-15.
5.14 RETURN ON EQUITY
The Commission had approved Return on Equity of Rs. 22.79 Crore for FY 2014-
15 vide Tariff Order dated November 21, 2014.The Return on Equity amounting to
Rs. 35.20 Crore has been claimed by APDCL is shown in the following Table:
98
Table 5.11: Return on Equity for FY 2014-15 as submitted by APDCL (Rs. Crore)
Particulars
Approved vide Tariff
Order dated
November 21, 2014
Proposed by
APDCL
Equity Capital as on 01-04-2014 162.77 251.45
Equity Capital as on 31-03-2015 162.77 251.45
Average Equity Capital for FY 2014-15 162.77 251.45
Rate of ROE 14.00% 14.00%
ROE for FY 2013-14 22.79 35.20
As per the AERC Tariff Regulations, 2006, Return on Equity shall be computed on
the actual Equity Capital employed in the business or 30% of the GFA of that year,
whichever is lower. For FY 2014-15, no new equity addition has been considered.
Accordingly, the Commission retains the RoE at Rs. 22.79 Crore for the APR
of FY 2014-15.
5.15 PROVISION FOR TAXES
The Commission had not approved the provision for tax for FY 2014-15 in the
Tariff Order dated November 21, 2014. APDCL, in its Petition for FY 2014-15, has
not claimed any expenses under the provision for taxes.
Accordingly, the Commission has considered the provision for taxes as Nil
for the APR of FY 2014-15.
5.16 NON TARIFF INCOME
The Commission had not approved any non-tariff Income for FY 2014-15 in its
Tariff Order dated November 21, 2014. APDCL claimed Rs. 29.63 Crore as Non
Tariff income for FY 2014-15.
It should be noted that while considering the power purchase cost for FY 2014-15,
only the energy requirement for sale within the State and the corresponding power
purchase cost has been allowed, as discussed in earlier Sections. Hence, the
Commission has not considered any Non Tariff Income on account of sale of
surplus power for FY 2014-15.
The Commission considers the Non-Tariff Income as Nil for FY 2014-15.
99
5.17 MISCELLANEOUS RECEIPTS/OTHER INCOME
The Commission had approved Other Income at Rs. 231.00 Crore in its Tariff
Order dated November 21, 2014. APDCL projected miscellaneous receipt/ other
Income as Rs. 209.86 Crore for FY 2014-15.
The Commission considers miscellaneous receipt/ other income of Rs. 231
Crore for FY 2014-15, as approved in the Tariff order for FY 2014-15 dated
November 21, 2014 . However, the Commission shall true-up Other Income
for FY 2014-15 based on the prudence check of Audited Statement of
Accounts
5.18 GOVERNMENT SUBSIDY
APDCL has proposed an amount of Rs. 81.64 Crore for deferment in levying
FPPPA for FY 2014-15. The State Government, vide its letter dated June 21, 2014
sanctioned financial support of Rs. 81.64 Crore for deferment in levying FPPPA for
FY 2014-15. APDCL proposed the same for FY 2014-15 as other subsidy.
APDCL also proposed an amount of Rs. 174.78 Crore as Targeted subsidy for FY
2014-15. The break-up of the subsidy amount is given below:
Sl. No.
Particulars Amount
1 Subsidy for deferment of FPPPA in FY 2014-15 81.64
2 Subsidy for FY 2013-14 booked in FY 2014-15 71.78
3 Subsidy for FY 2014-15 (for four months) 103.00
Total 256.42
The Commission also considers subsidy amount as Rs. 256.42 Crore, as
proposed by APDCL for review of FY 2014-15. However, the Commission
shall true-up amount of Government Subsidy for FY 2014-15 based on the
prudence check of Audited Statement of Accounts
5.19 REVENUE FROM SALE OF POWER
The Commission had approved the revenue from tariff at Rs. 3666.19 Crore in its
Tariff Order dated November 21, 2014. APDCL estimated the revenue from sale of
power at Rs. 3013.76 Crore, including the revenue of Rs. 84.63 Crore earned for
recovery of FPPPA charge.
The Commission considers the Revenue from Sale of Power as submitted by
APDCL at Rs. 3013.76 Crore in the APR of FY 2014-15. However, the
Commission shall true-up Revenue from Sale of Power for FY 2014-15 based
on the prudence check of Audited Statement of Accounts
100
5.20 APR FOR FY 2014-15
The APR for FY 2014-15 as analyzed in the above paragraphs is summarized in
the Table below:
Table 5.12: APR for FY 2014-15 (Rs. Crore)
ARR Elements
Approved in Tariff order FY 2014-15
dated November 21, 2014
Proposed in this petition
APR
Power Purchase (MU) 6832 7393.23 7166.46
Sales (MU) 5221 5475.94 5475.94
Distribution Losses 18.60% 20.16% 18.60%
Cost of Power Purchase 2652.46 2943.94 2834.91
Employee cost 609.65 641.36 595.89
Repair & Maint. Expenses 46.66 74.62 42.45
Admin.& Gen. Exp. 30.93 32.70 31.47
Depreciation 7.85 31.25 9.77
Interest & Finance charges 8.70 150.59 42.20
Interest on working Capital 41.70 56.42 28.91
Interest on CSD 4.92 48.34 4.92
Provision for Bad Debts - 0.00 -
Net prior period expenses - - -
Other debits - 7.25 0
Return on Equity 22.79 35.20 22.79
True Up Adjustments/ Liquidation of regulatory asset of past years
653.18 553.18 553.18
Total expenditure 4078.83 4574.85 4166.49
Non Tariff Income 0.00 29.63 0.00
Net ARR 4078.83 3992.04 4166.49
Revenue from Sale of Power at Existing Tariff
3666.19 3013.76 3013.76
Other Income 231.00 209.86 231.00
Revenue and other Subsidy 81.64 256.42 256.42
The component wise figures arrived at, for APR of FY 2014-15 is only
indicative.. Hence, any impact of APR of FY 2014-15 is not carried forward to
the ARR for FY 2015-16. Commission shall undertake prudent check during
the truing up of FY 2014-15, after the Audited Statement of Accounts is made
available.
101
6. Revised Annual Revenue Requirement for FY 2015-16
6.1 INTRODUCTION
The Commission had approved the ARR for FY 2015-16 in the MYT Order dated
November 21, 2013. This chapter deals with the determination of the revised ARR,
revenue deficit/surplus as well as retail tariff for FY 2015-16 for APDCL.
APDCL, in its Petition, has considered the ARR approved for FY 2015-16 by the
Commission in the MYT Order dated November 21, 2013, while determining the
revenue deficit/surplus for FY 2015-16 and has proposed revised retail tariff for FY
2015-16, however, APDCL has not considered the impact of truing up of FY
2013-14 on the same.
The Commission, in this Order, has trued-up the expenses and revenue for FY
2013-14 based on the prudence check of the Audited Statement of Accounts for
FY 2013-14 and has carried out the APR for FY 2014-15 based on the data
submitted by APDCL. Since, the base numbers for FY 2015-16 have changed as
a result of the above truing up for FY 2013-14 and APR of FY 2014-15, the
Commission considers it appropriate to revise the ARR for FY 2015-16, by
considering the revised numbers for FY 2013-14 and FY 2014-15.
6.2 ENERGY SALES
In this section, the consumer category-wise sales approved by the Commission for
FY 2015-16 in the MYT Order dated November 21, 2013, the energy sales
approved by the Commission in the APR of FY 2014-15, and the revised category-
wise sales approved by the Commission for FY 2015-16 in this order, have been
elaborated.
The Commission had approved total sales of 5574 MU for FY 2015-16 vide MYT
Order dated November 21, 2013, considering FY 2012-13 as the base year.
However, after availability of the actual sales data for FY 2013-14, estimation for
FY 2014-15, there is a need to revise the approved category-wise sales for FY
2015-16.
The Commission has analysed the growth in category-wise sales after considering
the actual sales in FY 2013-14 and estimated sales in FY 2014-15. For Jeevan
102
Dhara consumers, the sales has been estimated based on the projected addition
of consumers in this category.
6.3 CATEGORY-WISE ENERGY SALES
LT CATEGORIES
6.3.1 Jeevan Dhara
For FY 2015-16, APDCL has proposed for sale of 601 MU for Jeevan Dhara
category after considering addition of 5,72,476 number of Jeevan Dhara
consumers over FY 2014-15, as against the approved sale of 541 MU for Jeevan
Dhara vide MYT Order dated November 21, 2013.
The estimated number of connections and approved sales to this category during
APR of FY 2014-15 are 10,99,124 and 379.78 MU, respectively.
It may be noted that under Jeevan Dhara category, the consumer is expected to
consume not more than 1 kWh/day on an average, and in case they consume
more than 30 units per month, the consumers and their consumption are required
to be shifted to the Domestic A category. As discussed in Chapter 5 of this Order,
the Commission has capped the consumption of the Jeevan Dhara category to 30
units per month, and has considered the balance actual consumption under
Domestic A category.
In the MYT Order dated November 21, 2013, the Commission had considered that
APDCL would add 2.5 lakh consumers every year under the Jeevan Dhara
category in FY 2013-14, FY 2014-15, and FY 2015-16. However, APDCL has
added only 143603 consumers under this category in FY 2013-14 and 88386
consumers in FY 2014-15.
For arriving at the number of Jeevan Dhara connections for FY 2015-16, the
Commission has considered the addition of 1 lakh consumers to the estimated
number of consumers at the end of FY 2014-15 after considering the current
progress of RGGVY work. The Commission has considered the consumption of 30
kWh per month per consumer for this consumer category, for approving the sales
for FY 2015-16.
Based on the above analysis, the Commission approves the revised sales for
the Jeevan Dhara Category for FY 2015-16 as 413.68 MU.
103
6.3.2 Domestic – A
The Commission vide MYT Order dated November 21, 2013, had approved the
energy sales to Domestic A category as 1268 MU for FY 2015-16. As against the
same APDCL has proposed for sale of 1752.53 MU for FY 2015-16.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 16.5% as reasonable for approving the revised energy sales for FY
2015-16. The Commission has applied this growth rate over the sales value of
APR of FY 2014-15 to arrive at the FY 2015-16 level.
.Accordingly, the Commission approves the revised sales for the Domestic-
A category for FY 2015-16 as 2179.25 MU.
6.3.3 Domestic - B
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Domestic-B category as 271 MU for FY 2015-16 and APDCL has
proposed the same level of energy sale for this category in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has hence, considered 4-
year CAGR of 15.0% as reasonable for approving the revised energy sales for FY
2015-16. The Commission has applied this growth rate over the sales value of
APR of FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the Domestic-B
category for FY 2015-16 as 239.12 MU.
6.3.4 LT Commercial
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to LT Commercial category as 561 MU for FY 2015-16 and APDCL
has proposed the same level of energy sale in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 6.4% as reasonable for approving the revised energy sale for FY
104
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the LT
Commercial category for FY 2015-16 as 483.05 MU.
6.3.5 LT General Purpose Supply
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to LT General Purpose category as 100 MU for FY 2015-16 and
APDCL has proposed the same level of sale for this category in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 13.9% as reasonable for approving the revised energy sales for FY
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the LT General
Purpose category for FY 2015-16 as 126.96 MU.
6.3.6 Public Lighting
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Public Lighting category as 20 MU for FY 2015-16 and APDCL
has proposed the same level of energy sale for this category in the ARR proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 10.4% as reasonable for approving the revised energy sales for FY
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the Public
Lighting category for FY 2015-16 as 14.58 MU.
6.3.7 Agriculture (upto 7.5 HP)
105
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Agriculture category as 8 MU for FY 2015-16 and APDCL has
proposed the same level of energy sale for this category in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 24.1% as reasonable for approving the revised energy sales for FY
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the sales for the Agriculture (upto
7.5 HP) category for FY 2015-16 as 13.88 MU.
6.3.8 Small Industries - Rural upto 20 kW
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Small Industries - Rural category as 51 MU for FY 2015-16 and
APDCL has proposed the same level of energy sale for this category in the ARR
proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 1.8% as reasonable for approving the revised energy sales for FY
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the Small
Industries- Rural category for FY 2015-16 as 49.34 MU.
6.3.9 Small Industries – Urban
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to the Small Industries - Urban category as 28 MU for FY 2015-16
and APDCL has proposed the same level of energy sale for this category in the
ARR proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission has considered the 4-
year CAGR of 3.0% as reasonable for approving the revised energy sales for FY
106
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the Small
Industries – Urban category for FY 2015-16 as 27.29 MU.
6.3.10 Temporary Supply
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to the Temporary Supply category as 5 MU for FY 2015-16 and
APDCL has proposed the same level of energy sale for this category in the ARR
proposal
In the review for FY 2014-15, the Commission has considered the sales of 11.98
MU for this category.
Since the sales under Temporary Supply do not follow specific trend, the
Commission approves the same level of APR of FY 2014-15 i.e. 11.98 MU for
the Temporary Supply category for FY 2015-16.
HT CATEGORIES
6.3.11 HT Domestic (25 kVA and above)
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to HT Domestic category as 46 MU for FY 2015-16 and APDCL has
proposed the same level of energy sale for this category in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 9.9% as reasonable for approving the revised energy sales for FY 2015-
16. Commission has applied this growth rate over the sales value of APR of FY
2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the HT
Domestic (25 kVA and above) category for FY 2015-16 as 42.61 MU.
6.3.12 HT Commercial (25 kVA and above)
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to the HT Commercial category as 312 MU for FY 2015-16 and
107
APDCL has proposed the same level of energy sale for this category in the ARR
proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 11.0% as reasonable for approving the revised energy sales for FY
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the HT
Commercial (25 kVA and above) category for FY 2015-16 as 304.51 MU.
6.3.13 Public Water Works
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Public Water Works category as 73 MU for FY 2015-16 and
APDCL has proposed the same level of energy sale for this category in the ARR
proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 5.1% as reasonable for approving the revised energy sales for FY 2015-
16. Commission has applied this growth rate over the sales value of APR of FY
2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the Public
Water Works category for FY 2015-16 as 79.73 MU.
6.3.14 Bulk Supply (25 kVA and above)
a) Government Educational Institutions
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Government Educational Institutions category as 75 MU for FY
2015-16= and APDCL has proposed the same level of energy sale for this
category in the ARR proposal.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 14.2% as reasonable for approving the revised energy sales for FY
108
2015-16. Commission has applied this growth rate over the sales value of APR of
FY 2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the
Government Educational Institutions category for FY 2015-16 as 86.39 MU.
b) Bulk Supply Others
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Bulk Supply Others as 368 MU for FY 2015-16 and APDCL has
proposed the same level of energy sale for this category in the ARR proposal
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 6.5% as reasonable for approving the revised energy sales for FY 2015-
16.
Accordingly, the Commission approves the revised sales for the Bulk
Supply Others category for FY 2015-16 as 406.99 MU.
6.3.15 HT Small Industries – Upto 50 kVA
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to HT Small Industries category as 26 MU for FY 2015-16 and
APDCL has proposed the same level of energy sale for this category in the ARR
proposal
For this category, the Commission has considered the sales projection of APDCL
which has been calculated in accordance with the existing connections and new
connections expected to be released during the year.
Accordingly, the Commission approves the revised sales for the HT Small
Industries category for FY 2015-16 as 26.00 MU.
6.3.16 HT Industries-I (50 kVA to 150 kVA)
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to HT Industries - I category as 62 MU for FY 2015-16.
109
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 3.2% as reasonable for approving the revised energy sales for FY 2015-
16.
Accordingly, the Commission approves the revised sales for the HT
Industries-I category for FY 2015-16 as 82.28 MU.
6.3.17 HT Industries-II (above 150 kVA)
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to HT Industries - II category as 1234 MU for FY 2015-16.
For this category, the Commission has considered the sales projection of APDCL
which has been calculated in accordance with the existing connections and new
connections expected to be released during the year.
Accordingly, the Commission approves the revised sales for the HT
Industries-II category for FY 2015-16 as 1234.00 MU.
6.3.18 Tea, Coffee and Rubber
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Tea, Coffee, and Rubber category as 414 MU for FY 2015-16.
For this category, the Commission has considered the sales projection of APDCL,
which was found to be reasonable.
Accordingly, the Commission approves the revised sales for the Tea, Coffee
and Rubber category for FY 2015-16 as 414.00 MU.
6.3.19 Oil and Coal
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to Oil and Coal category 80 MU for FY 2015-16.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 2.0% as reasonable for approving the revised energy sales for FY 2015-
16.
110
Accordingly, the Commission approves the revised sales for the Oil and
Coal category for FY 2015-16 as 108.92 MU.
6.3.20 HT Irrigation (above 7.5 HP)
The Commission, in its MYT Order dated November 21, 2013, had approved the
energy sales to HT Irrigation category as 33 MU for FY 2015-16.
The Commission has analyzed the rate of growth in sales under this category over
the last 5 years. Based on the analysis, the Commission considers the 4-year
CAGR of 1.5% as reasonable for approving the revised energy sales for FY 2015-
16. Commission has applied this growth rate over the sales value of APR of FY
2014-15 to arrive at the FY 2015-16 level.
Accordingly, the Commission approves the revised sales for the HT
Irrigation category for FY 2015-16 as 28.09 MU.
6.4 HT Temporary (New Category)
APDCL proposed for introduction of a new category for HT Temporary supply, as
the need for same is felt from time to time by APDCL. However, APDCL has not
proposed any projection of sales for this category.
Therefore, the Commission has approved 10.00 MU for FY 2015-16 for this
category.
6.5 TOTAL ENERGY SALES
The total revised energy sales approved by the Commission for FY 2015-16 is
given in the following Table:
Table 6.1: Total Energy Sales for FY 2015-16 (MU)
Consumer Categories
Sales approved vide MYT
Order dated November 21,
2013
Proposed by APDCL
Sales approved in this Order
Jeevan Dhara CL 0.5 kW & 1 kWh/day 541.00 601.00 413.68
Domestic A (above 0.5 kW to 5 kW) 1268.00 1752.53 2179.25
Domestic B (above 5 kW to 20 kW) 271.00 271.00 239.12
Commercial (above 0.5 kW to 20 kW) 561.00 561.00 483.05
General Purpose Supply: CL upto 20 100.00 100.00 126.96
111
Consumer Categories
Sales approved vide MYT
Order dated November 21,
2013
Proposed by APDCL
Sales approved in this Order
kW
Public Lighting 20.00 20.00 14.58
Agriculture: upto 7.5 HP 8.00 8.00 13.88
Small Industries- Rural (up to 20 kW) 51.00 51.00 49.34
Small Industries- Urban 28.00 28.00 27.29
Temporary Supply 5.00 0.00 11.98
Total LT 2851.00 3392.53 3559.15
HT-Domestic - 25 kVA and above 46.00 46.00 42.61
HT-Commercial - 25 kVA and above 312.00 312.00 304.51
Public Water Works 73.00 73.00 79.73
Bulk Supply- Government Educational Institution
75.00 75.00 86.39
Bulk Supply-Others 368.00 368.00 406.99
HT Small Industry upto 50 kVA 26.00 26.00 26.00
HT Industry-I 50 kVA to 150 kVA 62.00 62.00 82.28
HT Industry above 150 kVA 1234.00 1234.00 1234.00
Tea, Coffee and Rubber 414.00 414.00 414.00
Oil and Coal 80.00 80.00 108.92
HT- Irrigation above 7.5 HP 33.00 33.00 28.09
HT Temporary
10.00
Total HT 2722.00 2723.00 2823.52
Total LT + HT 5574.00 6115.53 6382.67
6.6 DISTRIBUTION LOSSES
The Commission, in its MYT Order dated November 21, 2013, had approved the
distribution loss reduction trajectory of 0.5% per annum for the period from FY
2013-14 to FY 2015-16, and accordingly, the approved level of Distribution Loss
for FY 2015-16 is 17.60%. As against the same, APDCL proposed 19.99% as
Distribution Loss for FY 2015-16. However, as Distribution Loss is a controllable
performance parameter, the Commission deems it appropriate to retain the
approved Distribution Loss level of 17.60% for FY 2015-16 as approved in the
MYT Order dated November 21, 2013.
APDCL should make strenuous efforts to reduce the Distribution Loss to the level
approved by the Commission.
112
Accordingly, the Commission retains the Distribution Loss level of 17.60%
for FY 2015-16.
6.7 ENERGY REQUIREMENT
APDCL proposed for Energy requirement of 8140.13 MU, considering Energy sale
of 6115.53 MU, Distribution loss of 19.99%, Transmission (AEGCL) Loss of 3.84%
and PGCIL loss of 191.83 MU.
Commission vide MYT Order dated November 21, 2013, had approved Energy
requirement of 7209 MU, considering Energy sale of 5574 MU, Distribution Loss of
17.60%, Transmission (AEGCL) Loss of 3.64% and PGCIL loss of 189.00 MU.
While working out the revised energy balance for FY 2015-16, the Commission
has considered the Transmission (AEGCL) loss as approved in the MYT Order
dated November 21, 2013, and the PGCIL loss for NE region (injection) stations
as 1.50%, PGCIL loss for Eastern (injection) region stations as 0.96% and drawl
loss of Assam as 1.50% as per the recent notification of CERC on Point of
Connection (PoC) loss. Further Commission has considered the Energy sales
and Distribution Loss as approved in earlier chapters of this order. The Energy
requirement detail is shown in the table below:
Table 6.2: Energy Requirement for FY 2015-16 (MU)
Particulars Unit
Approved vide MYT Order dated
November 21, 2013 (MU)
Proposed by
APDCL Approved
Energy Sale MU 5574.00 6115.53 6382.67
Distribution Losses MU 1190.00 1527.55 1363.29
% 17.60% 19.99% 17.60%
Energy Requirement MU 6764.00 7643.08 7745.95
Transmission Loss MU 256.00 305.22 292.60
% 3.64% 3.84% 3.64%
Total Energy Input at AEGCL boundary MU 7020.00 7948.30 8038.56
Pooled loss of PGCIL MU 189.00 191.83 139.32
Total Energy Requirement MU 7209 8140 8178
Accordingly, Commission approves total Energy Requirement of 8178 MU for FY
2015-16.
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6.8 POWER PURCHASE
6.8.1 Energy Availability
The energy requirement for APDCL is met through purchase of power from
APGCL stations, allocated shares of Central Sector Generating Stations (CSGS),
Bilateral arrangements, Renewable Energy (RE) sources etc.
APDCL has proposed for purchase of 8474 MU for FY 2015-16, considering
purchase of 1891 MU from APGCL, 5593 MU from CSGS, 809 MU from Bilateral
arrangement and 181 MU from RE sources.
The Commission, in the Tariff Order for FY 2015-16 for APGCL for FY 2015-16,
has approved the revised net generation for FY 2015-16 based on current
installed capacity and planned Commissioning in the year. Commission has
considered the same as Energy availability to APDCL from APGCL stations for FY
2015-16.The detail is given in the Table below:
Table 6.3: Revised APGCL Generation approved by the Commission for
FY 2015-16 (MU)
Name of the Station Approved vide MYT
Order dated November 21, 2013
Approved in this Order
Namrup TPS 209.72 342.62
Lakwa TPS with WHRU 432.46 813.64
NRPP with WHRU 594.31 281.86
Lakwa Replacement 401.75 -
Karbi Langpi HEP 389.11 388.05
Lungit SHEP 26.60 -
Myntriang SHEP 66.85 41.17
Total 2120.81 1867.35
In reply to Commission‟s query, APDCL has submitted the actual source-wise
power purchase quantum and cost for FY 2014-15 till January, 2015 and
provisional source-wise power purchase quantum and cost for February and
March, 2015. For projecting the revised energy availability from sources other than
APGCL for FY 2015-16, the Commission has considered the source-wise power
purchase quantum procured in FY 2014-15, commissioning schedule for new
plants/unit, historical trend of generation for Hydro stations, major
maintenance/outage schedule and existing bilateral arrangements. Also, the
balance requirement of power, after procuring power from all tied-up sources, is
estimated to be met through purchase of power from Power Exchanges/ bilateral
arrangements. As regards to the power purchase by APDCL from RE sources, the
same has been considered in accordance with APDCL's submission.
114
The detailed Energy balance along with the availability of power from
various sources for FY 2015-16 is shown in the table below:
Table 6.4: Energy Balance for FY 2015-16
Sl. No
Particulars Unit
Approved vide MYT Order dated
November 21, 2013
Proposed by APDCL
Approved in this Order for
FY 2015-16
A Energy Requirement
1 Energy sales MU 5574.00 6115.53 6382.67
2 Distribution loss MU 1190.00 1527.55 1363.29
% 17.60% 19.99% 17.60%
3 Energy requirement MU 6764.00 7643.08 7745.95
4 Intra-State (AEGCL) Transmission loss
MU 256.00 305.22 292.60
% 3.64% 3.84% 3.64%
5 Energy input to transmission system
MU 7020.00 7948.30 8038.56
6
Inter-State (PGCIL) pooled loss
MU 189.00 191.83 139.32
7 Total Energy Requirement
MU 7209 8140* 8178
B Energy Available
(a) APGCL MU 2120.81 1891.31 1867.35
(b) CSGS including OTPC
MU 4878.98 5643.52 5192.95
(c) RE MU 130.13 130.13 130.13
(d) MeSEB MU 18.03 18.03 18.03
(e) Banskandi MU 52.05 0.00
(f) IOCL MU 8.50 46.72 46.72
(g) GCEL 744.60
Purchase from bilateral sources/ exchange
MU 0.00 0.00 922.91
Total Energy Available
MU 7209 8474 8178
* Energy sale through Trading is not included in the total Energy requirement proposed by
APDCL.
115
6.8.2 Power Purchase Cost
The Commission has considered the fixed cost and energy charges for APGCL in
accordance with the fixed cost and energy charges approved for APGCL for
FY 2015-16 in the Tariff Order dated July 24, 2015.
For computation of Power Purchase cost for CSGS, the Commission has
considered the provisional source-wise cost incurred by APDCL in FY 2014-15, as
submitted by APDCL, in absence of CERC Tariff Orders of CSGS for the control
period of 2014-19.However, for some of the CSGS sources where the Power
Purchase cost proposed by APDCL is lower, Commission has considered the
same, considering availability of reliable data with APDCL. The per unit power
purchase cost for IOCL (AOD) is provisionally considered as per the proposal of
APDCL.
Further Commission has computed the Power Purchase cost for the RE sources
after considering the actual Power Purchase cost of APDCL during FY 2014-15,
and proposal of APDCL for FY 2015-16.
The Commission has considered the average rate for last one year (from August,
2014 to July, 2015) of Rs. 2.87/kWh for the procurement of Power from Power
Exchanges. The average rate of one year has been taken to account for the
seasonal variations.
As per the Commission's Order dated July 20, 2015, the applicable RPO levels for
FY 2015-16 are 6.75% for Non Solar and 0.25% for Solar.
For FY 2015-16, 21.63 MU from solar sources and 149.67 MU from Non Solar, is
approved to be procured (the break-up of power purchase is given below). As the
availability from RE (Non-Solar) sources is not fulfilling the RPO Obligation,
Commission has allowed purchase of Renewable Energy Certificates (RECs) for
meeting the shortfall in RPO requirement. Also, the additional power purchased
from Solar has been adjusted against the Non Solar Obligation.
The detailed computation is shown in the Table below:
Table 6.5: Amount required for purchase of RECs for FY 2015-16
Source RPO RPO
Power Available
Shortfall/ Surplus
% MU MU MU
Solar 0.25% 15.96 21.63 -5.67**
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Non-Solar 6.75% 430.83 149.67# 281.16
TOTAL 7.00% 446.79 171.30 275.49
Non Solar Shortfall (MU) 275.49
No of Non Solar REC required to meet Non Solar Shortfall (272.04*1000)
275485
Non Solar REC Price (Rs/REC)* 1500
Total Non Solar REC Cost (Rs. Crore) 41.32
*The rate of REC is considered as per the Exchange discovered rate for FY 2014-15.
** The surplus power available from Solar has been considered by the Commission to meet the
Non Solar Obligation
# Considering 41.17 MU from Myntriang SHEP of APGCL and 108.50 MU from NCE Sources
Accordingly, the Commission approves Rs. 41.32 Crore, for purchase of
Renewable Energy Certificates (RECs) for meeting the shortfall in Non Solar RPO
requirement. APDCL is directed to fulfil the RPO Obligation.
The detail of Power Purchase quantum and cost is given in the Table below:
Table 6.6: Approved Power Purchase Cost for FY 2015-16
Sl. No
Agency/ source
Proposed by APDCL for FY 2015-16
Approved by the Commission for FY 2015-16 in this order
Quantum (MU)
Total Charge
(RS. Crore)
Rate /kWh
Quantum (MU)
Total Charge
(RS. Crore)
Rate /kWh
1 APGCL 1891.31 725.36 3.84 1867.35 818.97 4.39
2 NEEPCO (HYDRO)
- - - - - -
KOPILI I 220.96 42.92 1.94 331.01 26.23 0.79
KOPILI II 46.70 7.29 1.56 41.33 6.45 1.56
KHANDONG 54.46 15.57 2.86 74.18 14.73 1.99
RHEP 388.26 142.93 3.68 446.73 133.56 2.99
DHEP 75.73 39.39 5.20 67.95 32.10 4.72
3 NEEPCO (HYDRO) New
- - - - - -
KAMENG HEP
- - - - - -
4 NEEPCO (TH)
AGBPP( Assam)
963.29 381.58 3.96 952.50 341.24 3.58
AGTPP 292.26 129.26 4.42 276.40 111.54 4.04
5 NHPC Existg,LgHEP
166.85 50.15 3.01 142.10 42.71 3.01
6 NTPC (Existing)
FARAKKA 166.04 70.25 4.23 260.81 97.42 3.74
KAHELGAON - I
82.21 28.91 3.52 121.08 39.74 3.28
KAHELGAON -II
426.37 166.09 3.90 509.35 182.70 3.59
TALCHER 128.59 28.28 2.20 129.73 28.53 2.20
FARAKKA-III 122.95 61.60 5.01 122.95 55.08 4.48
117
Sl. No
Agency/ source
Proposed by APDCL for FY 2015-16
Approved by the Commission for FY 2015-16 in this order
Quantum (MU)
Total Charge
(RS. Crore)
Rate /kWh
Quantum (MU)
Total Charge
(RS. Crore)
Rate /kWh
7 NTPC (New) BTPS
732.50 319.37 4.36 303.68 132.40 4.36
8 OTPC 1725.92 551.99 3.20 1413.15 451.96 3.20
9 ADAMTILLA (SIPP)
0.00 - - - - -
10 BANSKANDI (SIPP)
- - - - - -
11 MeSEB 18.03 9.83 5.45 18.03 5.75 3.19
12 IOCL(AOD) 46.72 18.08 3.87 46.72 18.08 3.87
13 NCE
Non Solar 108.50 36.63 3.38 108.50 34.07 3.14
JNNSM Bundled Power-Solar Power
21.63 23.61 10.92 21.63 23.61 10.92
JNNSM Bundled Power- Coal
50.43 19.72 3.91 50.43 19.11 3.79
14 Trading Purchase
Bilateral OTPC Merchant
525.48 178.14 3.39
Bilateral DVC
162.00 55.08 3.40
Exchange
185.00 53.18 2.87
REC Purchase
41.32
15 GCEL 744.60 299.33 4.02 0.00 0.00
Total 8474 3168.15 3.74 8178 2943.69 3.60
16 AEGCL Charges
574.96
537.92
Total:: 8474 3743 4.42 8178 3481.61 4.26
Transmission Costs
The Transmission Charges and SLDC charges approved by the Commission in
the Tariff Order dated July 24, 2015 for AEGCL have been considered for
approving the charges payable to AEGCL for FY 2015-16. The transmission costs
include the charges to be paid to AEGCL for intra-State transmission (including
SLDC charges) and to PGCIL for inter-state transmission of power.
The Commission approves the Transmission Charges payable to AEGCL as
shown in the table below:
Table 6.7: Approved Transmission Charges (Rs. Crore)
Details Approved in the MYT Order Approved in this
118
dated November 21, 2013 Order for FY 2015-16
Transmission Charges 572.81
537.92*
SLDC Charges 2.15
Total 574.96
*SLDC cost for AEGCL has been approved as an ARR component in the order for FY 2015-16
6.9 TOTAL POWER PURCHASE COST
The total power purchase cost from various sources, including transmission
charges to be paid to AEGCL is aggregated to arrive at total Power Purchase cost
of APDCL as shown in the Table below:
Table 6.8: Approved Total Power Purchase Costs for FY 2015-16 (Rs. Crore)
Details Approved in the MYT Order dated November 21, 2013
Approved in this Order for FY 2015-16
AEGCL cost (including SLDC) 574.96 537.92
Cost of Power 2146.25 2943.69
Total Cost of Power Purchase 2416.69 3481.61
6.10 OPERATION AND MAINTENANCE (O&M) EXPENSES
The Operation and Maintenance (O&M) expenses comprise of Employee Expenses,
Repair and Maintenance (R&M) Expenses and Administration and General (A&G)
Expenses.
6.10.1 Escalation Index
For considering the year-on-year inflation for projecting O&M expenses in FY 2015-
16, the Commission has considered CPI as the inflation index for Employees
Expenses and WPI as the inflation index for A&G Expenses and R&M expenses. The
Commission considers these methods to be reasonable for projecting the O&M
Expenses in FY 2015-16. The CPI and WPI for FY 2014-15 are shown below:
Table 6. 9: Escalation rate for O&M Expenses
WPI CPI
Month FY 14
FY 15
FY 16
FY 14
FY 15
FY 16
April 171 181
226 242
119
WPI CPI
Month FY 14
FY 15
FY 16
FY 14
FY 15
FY 16
May 171 182
228 244
June 173 183
231 246
July 176 185
235 252
August 179 186
237 253
September 181 185
238 253
October 181 184
241 253
November 182 181
243 253
December 180 179
239 253
January 179 177
237 254
February 180 176
238 253
March 180.3 176
239 254
Average 178 181
236 251
2.00% 2.00% 6.29% 6.29%
6.10.2 Employee Expenses
The Commission had approved the Employee Expenses at Rs. 627.50 Crore for
FY 2015-16 in the MYT Order dated November 21, 2013. APDCL submitted
Employee Expense for FY 2015-16 as Rs. 662.11 Crore, considering yearly
increment of 8.67%.
The Commission, in this Order, has approved the Employee Expenses for FY
2015-16 by escalating the trued up Employee Expenses for FY 2013-14 by CPI
(@6.29%) for FY 2014-15 and FY 2015-16.
The Commission thus, approves the Employee Expenses at Rs. 633.34 Crore
for FY 2015-16.
6.10.3 Repair and Maintenance Expense (R & M Expense)
The Commission had approved the R&M Expense at Rs. 42.65 Crore for FY 2015-
16 in the MYT Order dated November 21, 2013. APDCL submitted R&M Expense
for FY 2015-16 as Rs. 81.59 Crore considering yearly increment rate of 8.67%.
For computation of R&M Expenses for ARR of FY 2015-16, the Commission has
adopted the same approach as adopted for Truing up of FY 2013-14 and
considering the WPI of 2%.
The Commission thus, approves the R&M Expense at Rs. 45.01 Crore for FY
2015-16.
120
6.10.4 Administration and General Expense (A & G Expense)
The Commission had approved the A&G Expenses at Rs. 18.96 Crore for FY
2015-16 in the MYT Order dated November 21, 2013. APDCL submitted A&G
expense for FY 2015-16 as Rs. 36.43 Crore considering yearly increment rate of
8.67%.
The Commission, in this Order, has approved the A&G Expense for FY 2015-16
by escalating the trued up A&G Expenses for FY 2013-14 by WPI (@2%) for FY
2014-15 and FY 2015-16. Further the Commission has allowed additional Rs. 1.00
Crore to APDCL for undertaking activities related to improving consumer
awareness and DSM activities during FY 2015-16.
Accordingly, the Commission, approves the A&G Expenses at Rs. 33.10
Crore for FY 2015-16.
6.11 CAPITAL EXPENDITURE AND SOURCES OF FUNDING
The Commission, in view of the distribution schemes planned for execution, had
provisionally approved the capital expenditure and capitalization for FY 2015-16 in
the MYT Order dated November 21, 2013, as Rs. 104.81 Crore and Rs. 265.99
Crore, respectively.
The scheme-wise projected capital expenditure as submitted by APDCL is shown
in the table below
Table 6.10: Capital Investment Plan submitted by APDCL for FY 2015-16 (Rs.
Crore)
Sl. No. Scheme FY 2015-16
1. Tribal Sub Plan (TSP)_ 3.50
2. Scheduled Caste Component Plant (SCCP)
5.00
3. Chief Minister's Power Supply Mission (CMPSM)
15.00
4. Improvement of Distribution System 10.00
5. Debt Servicing RGGVY 34.99
6. JNNSM 3.00
7. R-APDRP (GoA Share) 12.10
121
Sl. No. Scheme FY 2015-16
8. Consumer contribution 21.22
Total 104.81
The detailed breakup of funding of capital expenditure under various projects
during
Table 6.11: Funding of Capital Expenditure Schemes Proposed by APDCL
(Rs.
Crore)
Sl. No.
Scheme
FY 2015-16
Loan Grant Consumer contribution
Equity
1. Tribal Sub Plan (TSP)_ 3.50 0.00
0.00
2. Scheduled Caste Component Plant (SCCP)
5.00 0.00
0.00
3. Chief Minister's Power Supply Mission (CMPSM)
15.00 0.00
0.00
4. Improvement of Distribution System
10.00 0.00
0.00
5. Debt Servicing RGGVY
34.99
0.00
6. JNNSM
3.00
0.00
7. R-APDRP (GoA Share)
12.10
0.00
8. Consumer contribution
21.22 0.00
Total 33.50 50.09 21.22 0.00
The Commission has considered the APDCL‟s submission for capital expenditure
for FY 2015-16. Additionally, in order to facilitate the installation of pre-paid
meters (for LT consumers) and static meters (for all categories), not covered
under R-APDRP schemes, the Commission has considered additional
capitalisation of Rs. 10 Crore in FY 2015-16.
Table 6.12: Funding of Capital Expenditure Schemes Approved for FY 2015-
16 (Rs.Crore)
Sl. No.
Scheme
FY 2015-16
Loan Grant Consumer
contribution Equity
1. Tribal Sub Plan (TSP)_ 3.50 0.00
0.00
2. Scheduled Caste Component Plant (SCCP)
5.00 0.00
0.00
3. Chief Minister's Power Supply Mission (CMPSM)
15.00 0.00
0.00
122
Sl. No.
Scheme
FY 2015-16
Loan Grant Consumer
contribution Equity
4. Improvement of Distribution System 10.00 0.00
0.00
5. Debt Servicing RGGVY
34.99
0.00
6. JNNSM
3.00
0.00
7. R-APDRP (GoA Share)
12.10
0.00
8. Pre-Paid Metering/ Static Meters 10.00
9. Consumer contribution
21.22 0.00
Total 43.50 50.09 21.22 0.00
Total Capital Expenditure 114.81
6.12 CAPITALISATION
The revised capital expenditure and capitalization approved by the Commission
for FY 2015-16, is detailed in the Table below:
Table 6.13: Approved capital expenditure and capitalization for FY 2015-16
(Rs. Crore)
Description 2015-16
Opening balance of CWIP 3068.56
Add:
i) Capital expenditure 114.81
ii) Interest & Finance charges capitalised 19.29
iii) Other expenses capitalised -
Total capital expenditure for the year (I+ii+iii)
134.11
Less: Expenditure Capitalised 179.33
Closing Balance 3023.33
6.13 DEPRECIATION
The Commission, vide its MYT Order dated November 21, 2013, had approved
the depreciation charges at Rs. 14.64 Crore for FY 2015-16. As against this,
APDCL had proposed depreciation at Rs. 29.36 Crore in FY 2015-16.
Commission’s Analysis
The Commission has considered the opening GFA for FY 2015-16 as per the
closing GFA value approved in APR of FY 2014-15 provided above. The additions
of the assets have been taken as per the value proposed by APDCL. As per
123
Regulation 14 of the AERC Tariff Regulations, 2006, the total depreciation during
the life of the asset shall not exceed 90% of the original cost of GFA. The
Commission has adjusted the depreciation amount contributed by assets
exceeding 90% of the value while calculating the depreciation for FY 2015-16.
Further, as specified in Regulation 14 of the AERC Tariff Regulations, 2006,
depreciation on the assets created using consumer contribution or capital
subsidy/grant, etc., is excluded.
The Commission has approved depreciation for FY 2015-16 in accordance with
AERC Tariff Regulations, 2006, as given in the Tables below:
Table 6.14: Computation of Depreciation for FY 2015-16 (Rs. Crore)
Particulars GFA 01.04.2015
Addition during the
year
Rate of depreciation
Depreciation FY 2015-16
Land & Rights 17.77 0.13
0.00
Building 51.58 1.36 1.80% 0.94
Hydraulic 0.00 0 2.57% 0.00
Other Civil Works 47.47 1.8 1.80% 0.87
Plant & Machinery 562.54 18.16 3.60% 14.98
Lines & Cable Net work 917.56 41.93 3.60% 18.81
Vehicles 11.96 0.13 18.00% 0.09
Furniture& Fixtures 14.24 0.89 6.00% 0.33
Office Equipment 23.92 1.54 6.00% 1.29
Other Items 322.00 200.06
0.00
Grand Total 1969.04 266.00
37.31
Average Depreciation Rate
2.01%
Particulars FY 2015-16
Grants Available 3946.20
90% of the grant 3551.58
GFA (excluding Consumer Contr. and Land & Rights) 1854.72
average CWIP 3068.56
Total 4923.28
Grants pertaining to GFA (Cumulative grants apportioned in the ratio of GFA and CWIP)
1495.03
Depreciation calculated as per the Regulation on the GFA 37.31
Weighted average rate of depreciation 2.01%
Depreciation to be deducted on the assets built on the grants component
30.08
Depreciation approved 7.24
124
The Commission thus, approves the revised depreciation at Rs. 7.24 Crore
for FY 2015-16.
6.14 INTEREST AND FINANCE CHARGES
The Commission vide its MYT Order dated November 21, 2013, had approved Rs.
42.47 Crore of Interest and Finance charges for FY 2015-16. As against the same,
APDCL has proposed Rs. 95.50 Crore for FY 2015-16.
For ARR of FY 2015-16, The Commission has allowed the interest charges on R-
APDRP loans and State Government loans, bank charges, Other finance Charges
and discount to consumers for timely payment of bills in this order.
The closing balance of APR for FY 2014-15 has been taken as opening balance in
respect of the State Government loan & R-APDRP loan for FY 2015-16. For the
purpose of calculation of interest expenses, the repayment has been considered
equivalent to the Depreciation allowed by the Commission. The new loan additions
are considered from the approved investment plan during the year. The rate of
interest has been considered as 10% for State Government loan and 11.50% for
R-APDRP loan. Interest capitalized has been revised based on ratio of APDCL‟s
submission and approved interest amount for FY 2015-16.
The Interest and Finance charge approved by the Commission for FY 2015-16 is
given in the Table below:
Table 6.15: Approved Interest & Finance Charges for FY 2015-16 (Rs. Crore)
Particulars FY 2015-16
R-APDRP GoA Total
Opening Balance of loan 51.89 284.96 536.85
Addition - 3.50 43.50
Repayment 3.40 3.84 7.24
Closing Balance 248.49 24.62 573.11
Average rate of Interest 11.50% 10.00%
Interest 28.77 30.48 59.25
Bank Charges 0.75
Discount to consumers 0.32
Total Other Finance Charges 1.07
Total Interest & Finance Charges 60.32
Less: Interest Capitalised 19.29
Interest Expenses 41.03
Accordingly, Commission approves Interest and Finance Charges at
Rs. 41.03 Crore for FY 2015-16.
125
6.15 INTEREST ON WORKING CAPITAL
The Commission had approved the Interest on Working Capital of Rs. 44.14 Crore
for FY 2015-16 in the MYT Order dated November 21, 2013.
For computing Interest on Working Capital, APDCL has considered the rate of
interest at 14.75% which is the short-term PLR of SBI.
The Commission has computed the Interest on Working Capital as per the AERC
Tariff Regulations, 2006, as shown in the Table below:
Table 6.16: Interest on Working Capital for FY 2015-16 (Rs. Crore)
Approved in MYT Order dated
November 21, 2013
Proposed by APDCL
Approved for FY 2015-16
O&M Expenses- One month 64.54 65.01 59.29
Maintenance spares at 1% of GFA
29.70 22.21 19.69
Receivables for 60 days 543.04 616.51 721.30
Less: consumer security deposit
338.01 373.16 460.07
Receivable excluding consumer security deposit
205.03 243.35 261.23
Working Capital 299.28 330.57 340.20
Rate of Interest on WC as on April 01, 2015
14.75% 14.75% 14.75%
Interest on Working Capital 44.14 48.76 50.18
Accordingly, the Commission approves the Interest on Working Capital at
Rs. 50.18 Crore for FY 2015-16.
6.16 INTEREST ON CONSUMER SECURITY DEPOSIT
The Commission, in its MYT Order dated November 21, 2013, had approved
Interest on Consumer Security Deposit at Rs. 33.47 Crore for FY 2015-16. APDCL
has not proposed any amount as Interest on Consumer Security Deposit for FY
2015-16.
As per AERC (Electricity Supply Code and Related Matters) Regulations, 2004
(First Amendment 2007), APDCL is required to pay Interest on Consumer Security
Deposit on a yearly basis. Therefore, APDCL should have proposed Interest on
Consumer Security Deposit. It is observed that APDCL has not fully complied with
the relevant regulations and directions of the Commission in this regard. APDCL is
directed to expedite the compliance on this account and ensure all consumers are
paid interest on security deposit.
126
Accordingly, the Commission has allowed Rs. 15.00 Crore as Interest of
Consumer Security Deposit and APDCL should ensure the payment of this
amount to the consumers. The Commission shall true up this figure later based on
Audited Statement of Accounts.
Accordingly, the Commission approves Interest on Security Deposit as Rs.
15.00 Crore for FY 2015-16.
6.17 PROVISION FOR BAD AND DOUBTFUL DEBTS
The Commission did not approve any provision for bad debts for FY 2015-16 in its
MYT Order dated November 21, 2013. APDCL has also not claimed any Provision
for Badand doubtful debts for FY 2015-16
Accordingly, the Commission considers provision for Bad and Doubtful
debts as Nil for FY 2015-16.
6.18 OTHER DEBITS
The Commission did not approve any other debits for FY 2015-16 in its MYT
Order dated November 21, 2013. APDCL has not claimed any other debits for FY
2015-16
Accordingly, the Commission considers other debits as Nil for FY 2015-16.
6.19 NET PRIOR PERIOD EXPENSES
APDCL also not claimed any amount under such head for FY 2015-16. The
Commission also considers net prior period expenses as Nil in the ARR for
FY 2015-16.
6.20 RETURN ON EQUITY
The Commission had approved Return on Equity (RoE) of Rs. 22.79 Crore for FY
2015-16 in the MYT Order dated November 21, 2013. As against the same,
APDCL has claimed Return on Equity of Rs. 35.20 Crore for FY 2015-16 and the
same is shown in the following Table:
Table 6.17: Return on Equity for FY 2015-16 as submitted by APDCL (Rs. Crore)
Particulars
Approved in Order
dated November 21,
2013
APDCL
Proposal
127
Particulars
Approved in Order
dated November 21,
2013
APDCL
Proposal
Equity Capital as on 31-03-2015 162.77 251.45
Equity Capital as on 31-03-2016 162.77 251.45
Average Equity Capital for FY 2015-16 162.77 251.45
Rate of ROE 14.00% 14.00%
RoE for FY 2015-16 22.79 35.20
As per the AERC Tariff Regulations, 2006, Return on Equity shall be computed on
the actual Equity Capital employed in the business or 30% of the GFA of that year,
whichever is lower.
Accordingly, the Commission retains the RoE at Rs. 22.79 Crore for ARR of
FY 2015-16.
6.21 NON TARIFF INCOME
The Commission did not approve any amount for Non Tariff Income for FY 2015-
16 in the MYT Order dated November 21, 2013. As against the same, APDCL
has proposed Non Tariff Income of Rs. 83.54 Crore for FY 2015-16 on account of
periodical surplus power sale, as projected by APDCL. It should be noted that
while considering the power purchase cost for FY 2015-16, only the energy
requirement for sale within the State and the corresponding power purchase cost
has been allowed. Hence, no Non Tariff Income is considered for FY 2015-16.
Accordingly, the Commission considers Non Tariff Income as Nil for FY
2015-16.
6.22 MISCELLANEOUS RECEIPTS/OTHER INCOME
The Commission had approved Other Income as Rs. 255.27 Crore for FY 2015-16
in its MYT Order dated November 21, 2013. APDCL proposed for Miscellaneous
Income/Trading Income at the same level i.e. Rs. 255.27 Crore for FY 2015-16.
Accordingly, the Commission retain the miscellaneous receipt/ other income
of Rs. 255.27 Crore for FY 2015-16.
128
6.23 GOVERNMENT SUBSIDY
APDCL submitted that Govt. of Assam has declared category wise subsidy for FY
2014-15 in order to provide financial relief to the following category consumers‟
consequent to hike in tariff by AERC on 21.11.2014 as detailed below:
Sl. No. Category of consumers Existing subsidy
(`/unit)
1 Jeevan Dhara 1.31
2 Domestic-A (up to 120 units per month) 1.01
3 LT Commercial for consumption upto 120 units
per month 0.60
4 Small Industries Rural (up to 20KW) for
consumption upto 120 units per month 0.30
5 Small Industries Urban for consumption upto 120
units per month 0.30
APDCL submitted that on the basis of estimation in the tariff order, Government of
Assam has sanctioned Rs 309 Crore on this account during FY 2014-15.
However, APDCL also submitted that, as the revised tariff was made effective
from December 01, 2014; subsidy for FY 2014-15 will be effective for only four
month in 2014-15 and as such, subsidy for balance eight months amounting to Rs.
206 Crore (Rs. 309 Crore÷12x8) has been adjusted in the claim for FY 2015-16.
The Commission has taken into consideration the submission of APDCL and has
accordingly, worked out the category wise tariff by adjusting the amounts of
eligible subsidy against the targeted categories of consumers. The subsidized
tariff for the targeted categories of consumers, are contingent upon payment of
subsidy as agreed by the Government. Without the Government subsidy, the rates
contained in the full cost recovery tariff schedule shall become operative.
.
6.25 REVENUE AT PROPOSED TARIFF
For FY 2015-16, the revenue at proposed tariff (which is same as the existing tariff
except changes in LT Agriculture, LT Temporary Agriculture and new category of
HT Temporary) has been computed considering the approved sales, connected
load and no of consumers for FY 2015-16 and the existing category-wise tariff
(without subsidy) as per Tariff Order dated November 21, 2014. Accordingly, the
Revenue at existing tariff for FY 2015-16 works out to Rs. 4386.55 Crore.
129
6.26 ANNUAL REVENUE REQUIREMENT (ARR)
The ARR for FY 2015-16 as analyzed in the above paragraphs, is summarized in
the Table below:
Table 6.18: Approved ARR for FY 2015-16 (Rs. Crore)
ARR Elements
Approved in MYT Order
dated November 21, 2013
Proposed by APDCL
Approved
Cost of Power Purchase 2721.21 3743.11 3481.61
Employee cost 627.50 662.11 633.34
Repair & Maint. Expenses 42.65 81.59 45.01
Admin.& Gen. Exp. 18.96 36.43 33.10
Depreciation 14.64 29.36 7.24
Interest & Finance charges 42.47 95.50 41.03
Interest on working Capital 44.14 51.31 50.18
Interest on CSD 33.47 0 15.00
Provision for Bad Debts 0 0 0
Net prior period expenses 0 0 0
Other debits 0 0 0
Return on Equity 22.79 35.20 22.79
Total expenditure 3567.82 4734.62 4329.29
Non Tariff Income - 83.54 -
Total ARR 3567.82 4651.08 4329.29
Other Income 255.27 255.27 255.27
Net ARR for FY 2015-16 3312.85 4395.81 4074.02
6.27 REVENUE GAP FOR FY 2015-16
APDCL projected the revenue requirement of Rs. 4341.47 Crore for
FY 2015-16, however, APDCL had not included the revenue gap on account of
true-up of FY 2013-14,, as shown in the following Table:
Table 6.19: Cumulative Revenue Gap for FY 2015-16 as sought by APDCL (Rs.
Crore)
Sl. No.
Particulars Amount
1 Approved ARR for FY 2015-16 3312.56
2 Deficit in the approved ARR 51.66
3 Net Additional claim 541.44
5 Add: Regulatory asset created vide order dated 21.11.14 100.00
6 Add: Additional revenue consequent to revision vide order dated 21.11.14 as well as consideration of FPPPA @ 36 paisa per unit consequent to revision of Gas price
541.80
7 Total Revenue Requirement 4547.47
130
Sl. No.
Particulars Amount
8 Less: Subsidy amount effective till November, 2015 206.00
9 Net Amount 4341.47
13 Estimated sale of energy (MU) 6115.53
14 Average Tariff (Rs./kWh)* 7.10
*APDCL Proposal of Average Tariff is exclusive of their Proposal of Revenue Gap for True-Up of
FY 2013-14
It is observed from the above table, that APDCL has wrongly considered Rs. 206
Crore as Revenue Subsidy. This subsidy amount is actually for a few targeted
categories of consumers, as declared by Government of Assam.
In this Order, the Commission has undertaken the final truing up for FY 2013-14
and determined Revenue deficit of Rs. 213.87 Crore, as elaborated in Chapter 4
of this Order, the same is considered for determination of Revenue Gap for FY
2015-16. The Commission has also allowed pass through of the Regulatory Asset
of Rs. 100 Crore created vide Tariff Order dated November 21, 2014 while
approving Net Revenue Requirement for 2015-16.
Hence, the approved revenue gap/surplus for FY 2015-16 is given in the table
below:
Table 6. 20: Approved Revenue gap/(surplus) for FY 2015-16 (Rs. Crore)
Net ARR for FY 2015-16 4074.02
True Up 2013-14 Adjustment 213.87
Add regulatory Asset Created vide Tariff Order dated November 21, 2014
100.00
Total Revenue Requirement 4387.89
Revenue Subsidy 0.00
Revenue from Sale of Power at existing tariff 4386.55
Gap(-)/Surplus(+) considering revenue at Existing Tariff
-1.34
*Revenue from Sale of Power has been calculated on full cost recovery tariff and the effect of Government Targeted Subsidy is shown in the Tariff Schedule.
As the approved gap is only Rs. 1.34 Crore, the Commission is of the opinion that
the gap should be met by APDCL through efficiency improvement measures.
Accordingly, the Commission has not changed the existing tariff schedule, except
for LT agriculture, LT Temporary Agriculture and inclusion of a new category of HT
Temporary. The details of tariff design are given in the next Chapter.
131
7 Tariff Principles and Approved Tariff for FY 2015-16
7.1 INTRODUCTION
In determining the revenue requirement and the retail supply tariff of APDCL for
FY 2015-16, the Commission has been guided by the provisions of the Electricity
Act, 2003 and the National Electricity Policy (NEP), the Tariff Policy, and the
AERC Tariff Regulations.
Section 61 of the Act lays down the broad principles and guidelines for
determination of retail supply tariffs. The basic principle is to ensure that tariff
should progressively reflect the cost of supply of electricity and reduce the cross
subsidies amongst categories within a period to be specified by the Commission.
The Act lays down special emphasis on safeguarding of consumers interest and
also requires that the costs should be recovered in a reasonable manner. The Act
mandates that tariff determination should be guided by factors which “encourage
competition, efficiency, economical uses of resources, good performance and
optimum investment”. The Tariff Policy notified by the Government of India
provides comprehensive guidelines for determination of tariff as also working out
the revenue requirement of power utilities. The Commission has followed these
guidelines, as far as possible.
The Commission has carried forward, the process of rationalization of tariff in
order to ensure that the tariffs reflect as far as practicable, the cost of supply. In
order to determine the voltage-wise cost of supply, the Commission requires a
number of inputs from the Utility based on the data developed on sustainable
basis.
The Hon‟ble Appellate Tribunal for Electricity, in its Judgment dated 14 March,
2006 in Appeal No. 3 of 2005 filed by some consumers in Assam, has observed
on implementation of cost of supply as under:
“___ The cost of supply of electricity must be determined in accordance
with the principle laid down in the Act. Since the relevant data was not
available with the Commission, it was not possible for it to determine the
“cost of supply of electricity” we cannot ask the Commission to do the
impossible. Since in the past the Commission was not in a position to give
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appropriate direction for want of data. We will now direct the utilities that
the installations be metered at strategic locations to perform energy audit
for determining losses and supply to various classes of consumers
immediately, so that it is possible for the AERC to determine the cost of
supply to different categories of consumers. We presently decide not to
interfere with the order of the Commission in this aspect of the matter”.
In this context, the Commission in its Order dated 16 May, 2011 had issued
directives to APDCL to carry out a study to ascertain voltage-wise and consumer
category-wise cost of supply. Compliance with the Directives issued and
Commission's comments have been elaborated in the Directives Chapter.
Till the Commission is able to calculate voltage wise cost of supply, the
Commission has attempted to maintain the cross-subsidy within +/- 20% of the
average cost of supply as mandated by the Tariff Policy, taking into consideration
the “cost of supply” implemented by the Commission to various categories of
consumers in its earlier Tariff Order. The Commission has set a loss reduction
target for APDCL. Reduction of distribution loss and better performance by
APDCL will result in reduction of losses and consequently the average cost of
supply.
7.2 REVENUE DEFICIT / SURPLUS FOR FY 2015-16
Sr.
No.
Particulars Approved vide FY
2014-15 Order
dated November 21,
2014
Approved for FY
2015-16 in this
Order
1 Total LT Sales (MU) 2905 3559
2 Total HT Sales (MU) 2317 2824
3 Total Sales (MU) 5221 6383
4 Total Revenue from Sale of
power (Rs. Crore)*
3666.19 4386.55
5 Average Revenue per Unit
(Rs./kWh)
7.02 6.87
6 Net ARR (Rs. Crore) 3666.19 4387.89
7 Average Cost of Supply
(Rs/kWh)
7.02 6.87
* Revenue figures have been calculated at full cost recovery tariff (i.e. without subsidy). The
schedule of tariff in FY 2015-16 is the same as the schedule of tariff for FY 2014-15, except for
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LT Agriculture, LT Temporary Agriculture and newly introduced category of HT Temporary
Supply.
It can be observed from the above table, that the average per unit revenue in FY
2015-16 has reduced from Rs. 7.02/kWh in FY 2014-15 to Rs. 6.87/kWh due to
the change in sales mix, as shown above. The per unit revenue for FY 2015-16 is
almost same as the average cost of supply, as approved in this Order.
For determination of the ARR for FY 2015-16 and tariff for FY 2015-16, the
Commission has considered the ARR approved for APGCL and AEGCL for FY
2015-16, in their respective Tariff Orders dated July 24, 2015. Further, the impacts
of truing up for APGCL and AEGCL for FY 2013-14, have been incorporated while
approving the ARR for APGCL and AEGCL for FY 2015-16, respectively.
The Commission has approved the net revenue gap for FY 2015-16 as Rs. 1.34
Crore, as elaborated in Chapter 6 of this Order. However, as mentioned above,
the gap has not been considered for Tariff Design.
7.3 TARIFF DESIGN
For the tariff schedule of FY 2015-16, the Commission has introduced a new
category of HT Temporary Supply, as proposed by APDCL.
The full cost recovery based category-wise tariffs and increase/decrease in tariff is
given in the following Table:
Table 7.1: Category-wise full cost recovery tariff and decrease/increase in
tariff in FY 2015-16
Sl. No. Consumer Category
Decrease/ Increase in tariffs Revised tariffs
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
LT Group
LT-1 Jeevan Dhara 0.5 kW and 1 kWh/day
No change No change
15 410
LT-II Domestic A- above 0.5 kW to 5 kW
0 to 120 units per month No change No change 30 495
121 to 240 units per month
No change No change
30 625
Balance units No change No change 30 725
LT-III Domestic-B above 5 kW to 20 kW
No change No change
30 685
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Sl. No. Consumer Category
Decrease/ Increase in tariffs Revised tariffs
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
LT-IV Commercial Load above 0.5 kW to 20 kW
No change No change
110 755
LT-V General Purpose Supply No change No change 125 635
LT-VI Public Lighting No change No change 120 640
LT-VII Agriculture upto 7.5HP No change Decrease of 30 paise
30 430
LT-VIII(i)
Small Industries Rural upto 20 kW
No change No change
30 485
LT-VIII(ii)
Small Industries Urban upto 20 kW
No change No change
40 510
LT-IX Temporary Supply No change
Domestic No change No change 80 875
Non-Domestic Non- Agriculture
No change No change
125 1085
Agriculture No change Decrease of 225 paise
50 450
HT Group No change
HT-I HT Domestic 25 kVA and above
No change No change
30 680
HT-II HT commercial 25 kVA & above
No change No change
115 755
HT-III Public Water Works No change No change 125 605
HT-IV Bulk Supply 25 kVA and above
No change
HT-IV(i)
Government Educational Institutions
No change No change
110 645
HT-IV(ii)
Others No change No change
145 725
HT-V(A)
HT Small Industries upto 50 kVA
No change No change
40 560
HT-V(B)
HT Industries-1 50 kVA to 150 kVA
No change No change
100 625
HT-V(C)
HT Industries-II above 150 kVA
No change No change
140 685
HT Industries-II above 150 kVA (Option 2)
No change No change
270 600
HT-VI Tea, Coffee & Rubber No change No change 230 675
HT-VII Oil & Coal No change No change 270 735
HT-VIII HT Irrigation Load above 7.5 HP
No change No change
40 585
HT Temporary Supply New Category 145 850
It can be observed that, except for LT Agriculture & LT Temporary Agriculture, the
tariff for other categories have been kept unchanged from the existing level. Also,
a new category of HT Temporary has been introduced.
Further, as specified in the section 6.23, after issue of the last tariff order issued
by the Commission on November 21, 2014, the State Government had declared
targeted subsidies for a few categories. Based on the existing level of subsidy, the
Commission has worked out the category wise tariff by adjusting the amounts of
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eligible subsidy against the targeted categories of consumers. The same is shown
below:
Table 7.2: Category-wise Tariff Without Subsidy and Tariff With Subsidy
Sl. No. Consumer Category
Tariff Without Subsidy (Full Cost Recovery Tariff)
Tariff With Existing Subsidy
Fixed Charges (Rs/kW or Rs/kVA)
Energy Charges (paise per kWh)
Fixed Charges (Rs/kW or Rs/kVA)
Energy Charges (paise per kWh)
LT Group
LT-1 Jeevan Dhara 0.5 kW and 1 kWh/day
15 410 15 279
LT-II
Domestic A- above 0.5 kW to 5 kW
0 – 120 kWh per month 30 495 30 394
121 – 240 kWh per Month
30 625 NA NA
Balance kWh 30 725 NA NA
LT-IV
Commercial Load above 0.5 kW to 20 kW
0 to 120 units per month 110 755
110 695
Above 120 units NA NA
LT-VIII(i)
Small Industries Rural upto 20 kW
0 to 120 units per month 30 485
30 455
Above 120 units NA NA
LT-VIII(ii)
Small Industries Urban upto 20 kW
0 to 120 units per month 40 510
40 480
Above 120 units NA NA
Note: The subsidized tariff for the targeted categories of consumers, are contingent upon
payment of subsidy as agreed by the Government. Without the Government subsidy, the
rates contained in the full cost recovery tariff schedule shall become operative.
For categories other than those specified above for targeted subsidy, the full cost
recovery tariff shall be applicable, as existing and shown in Table 7.1. The detailed
schedule is given separately.
7.4 CROSS SUBSIDY
The Tariff Policy notified by the Ministry of Power, Government of India on January
5, 2006, stipulates as under:
"8.3 Tariff design : Linkage of tariffs to cost of service
...
Accordingly, the following principles would be adopted:
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1. In accordance with the National Electricity Policy, consumers below
poverty line who consume below a specified level, say 30 units per month,
may receive a special support through cross subsidy. Tariffs for such
designated group of consumers will be at least 50% of the average
cost of supply. This provision will be re-examined after five years.
2. For achieving the objective that the tariff progressively reflects the cost
of supply of electricity, the SERC would notify roadmap within six months
with a target that latest by the end of year 2010-2011 tariffs are within ±
20 % of the average cost of supply. ...
For example if the average cost of service is Rs 3 per unit, at the end of
year 2010-2011 the tariff for the cross subsidised categories excluding
those referred to in para 1 above should not be lower than Rs 2.40 per
unit and that for any of the cross-subsidising categories should not go
beyond Rs 3.60 per unit."
Accordingly, the Commission has attempted to limit the cross subsidy to + 20% of
the average cost of supply while determining the tariffs to different categories of
consumers, excluding Jeevan Dhara category, as per the guidelines of the Tariff
Policy, as shown in the Table below:
Table 7.3: Category-wise cross-subsidy in FY 2015-16 (paise/kWh)
Sl. No.
Category of consumers Average Billing Rate
Average Cost of Supply
Cross-subsidy as Ratio of Average Billing Rate to ACOS (%)
LT Category
1. Jeevan Dhara 0.5 kW and 1kWh/day
462 687 67.23%
2. Domestic A- above 0.5 kW to 5 kW
577 687 83.92%
3. Domestic-B above 5 kW to 20 kW 753 687 109.48%
4. Commercial Load above 0.5 kW to 20 kW
865 687 125.82%
5. General Purpose Supply 755 687 109.85%
6. Public Lighting 712 687 103.53%
7. Agriculture upto 7.5HP 540 687 78.57%
8. Small Industries Rural upto 20 kW 557 687 81.03%
9. Small Industries Urban upto 20 kW
579 687 84.28%
10. Temporary Supply
(i) Domestic 875 687 127.28%
(ii) Non Domestic non Agriculture 1085 687 157.83%
(iii) Agriculture 450 687 65.46%
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HT Category
11. HT Domestic 25 kVA and above 750 687 109.16%
12. HT commercial 25 kVA & above 847 687 123.18%
13. Public Water Works 687 687 99.95%
14. Bulk Supply 25 kVA and above
14A Government Educational Institutions
717 687 104.23%
14B Others 799 687 116.23%
15. HT Small Industries upto 50 kVA 617 687 89.72%
16. HT Industries-1 50kVA to 150 kVA 720 687 104.71%
17. HT Industries-II above 150 kVA 742 687 107.90%
18. Tea, Coffee & Rubber 807 687 117.35%
19. Oil & Coal 817 687 118.87%
20. HT Irrigation Load above 7.5 HP 664 687 96.62%
21. HT Temporary 850 687 123.64%
As can be seen from the above Table, the average billing rate for almost all
categories is within the band of 80% to 120% of average cost of supply, which is in
accordance with the Tariff Policy.
7.5 FUEL PRICE AND POWER PURCHASE ADJUSTMENT CHARGES (FPPPA)
Fuel Price and Power purchase adjustment charges as per the Regulations
notified by the Commission are applicable. As per Regulation 5.2 of the AERC
(Fuel and Power Purchase Price Adjustment) Regulations, 2010 “The FPPPA
charges shall not exceed 25% of the variable cost component of tariff or such
other ceiling as may be stipulated by the Commission from time to time, where the
variable component of tariff is defined as total estimated revenue from energy
charges (EC) in a year the approved in the Tariff Order divided by total estimated
sales of the year. When FPPPA charges exceed 25% of the variable component
of tariff, the licensee shall make a petition to the Commission for recovery of the
charges over the specified cap which shall be recovered after Commission’s
scrutiny and directives”.
APDCL shall strictly follow the above Regulation and when FPPPA charges
exceed 25% of the variable components of the tariff, APDCL shall file a Petition
before the Commission and FPPPA charges beyond 25% of the variable cost
component of tariff shall be recovered only after Commission‟s scrutiny and
approval.
138
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8. Wheeling Charges and Cross subsidy surcharge
8.1 INTRODUCTION
The Commission has in the present Order determined the wheeling charges for
distribution business of APDCL for FY 2015-16.
8.2 ALLOCATION MATRIX
The Commission has considered the following matrix for allocation of expenses
between the wires business and retail supply business in its Order passed on 21
November, 2013.
Table 8.1: Allocation matrix for separation of ARR for Wires Business and
Retail Supply Business
Sl.
No. Particulars
Wire
Business
Retail Supply
Business
1 Power purchase expenses 0% 100%
2 Employee expenses 60% 40%
3 Repair and Maintenance expenses 90% 10%
4 Administration and General expenses 50% 50%
5 Depreciation 90% 10%
6 Interest and Finance charges 90% 10%
7 Interest on working capital 10% 90%
8 Interest on Security deposit 0% 100%
9 Bad debts written off 0% 100%
10 Income tax 90% 10%
11 Return on equity 90% 10%
12 Other income 10% 90%
13 Non-tariff income 0% 100%
14 Revenue subsidy 0% 100%
The Commission has adopted the same allocation matrix given in Table 8.1 above
for segregation of the approved ARR for wires business and retail supply business
for APDCL for FY 2015-16, as given below:
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Table 8.2: Separation of ARR for Wires Business and Retail Supply
Business for FY 2015-16 (Rs. Crore)
Sl.
No, Particulars
Allocation Matrix Separation of Wheeling Charges and Retail Supply Charges
Wire Business
Retail Supply Business
Wire Business
Retail Supply Business
Total
1 Power purchase expenses
0% 100% 0.00 3481.61 3481.61
2 Employee expenses 60% 40% 380.01 253.34 633.34
3 Repair and Maintenance expenses
90% 10% 40.51 4.50 45.01
4 Administration and General expenses
50% 50% 16.55 16.55 33.10
5 Depreciation 90% 10% 6.51 0.72 7.24
6 Interest and Finance charges
90% 10% 36.93 4.10 41.03
7 Interest on working capital
10% 90% 5.02 45.16 50.18
8 Interest on Security deposit
0% 100% 0.00 15.00 15.00
9 Provision for Bad debts 0% 100% 0.00 0.00 0.00
10 Income tax 90% 10% 0.00 0.00 0.00
11 Return on equity 90% 10% 20.51 2.28 22.79
12 Less: Other income 10% 90% 25.53 229.74 255.27
13 Less: Non-tariff income 0% 100% 0.00 0.00 0.00
14 Less: Revenue subsidy 0% 100% 0.00 0.00 0.00
15 TOTAL ARR
480.50 3593.52 4074.02
8.3 WHEELING CHARGES
The wheeling charges for distribution open access consumers and 33 kV voltage
level for FY 2015-16, has been determined from the ARR of the Wires Business
distribution, as determined in Table 8.2 above.
Table 8.3: Wheeling charges approved by the Commission for FY 2015-16
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Particulars Unit FY 2015-16
Total energy input into Distribution system MU 7746
Total distribution cost Rs. Crore 480.50
Distribution cost for wires business for 33 kV voltage level (assuming 35% of cost at 33 kV)
Rs. Crore 168.17
Wheeling charges for 33 kV voltage level Paise/kWh 22.00
The wheeling charges for FY 2015-16, as determined in Table 8.3 above, are
applicable for use of the distribution system of APDCL by other licensees or
generating companies or captive power plants or consumers/users who are
permitted open access at 33 kV voltage level under Section 42(2) of the Electricity
Act, 2003.
8.4 CROSS SUBSIDY SURCHARGE
The open access consumers are liable to pay the cross subsidy surcharge to
compensate the utility for any loss of revenue due to the shifting of the consumer
to the open access system. In accordance with Regulation 4.3 of the AERC
(Terms and Conditions for Open Access) Regulations, 2005, consumers with a
connected load of 3 MW and above shall be allowed open access with effect from
1 April, 2008. Accordingly, HT category V (C): HT-II Industry consumers may likely
opt for open access.
As per the approach adopted in the Tariff Order for FY 2014-15 dated November
21, 2014, the cross subsidy surcharge for HT-II industry category, is shown in the
Table below:
Table 8.4: Cross subsidy surcharge for HT II Industry category for FY 2015-
16
Sl. No.
Particulars Unit Amount
1 Average Billing Rate of that category Rs./kWh
7.41
2 Average Cost of Supply Rs./kWh
6.87
3 Cross-subsidy (1) - (2) Rs./kWh
0.54
4 Cross subsidy surcharge Rs/kWh
0.54
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9. Compliance of Directives by APDCL and new Directives
9.1 COMPLIANCE OF DIRECTIVES ISSUED BY THE COMMISSION
The Commission, in its Tariff order for FY 2008-09 and FY 2009-10 dated May 24,
2009, MYT Order dated May 16, 2011 for FY 2010-11 to FY 2012-13 and Tariff
Order dated February 28, 2013 for FY 2012-13, had issued certain directives to
APDCL. APDCL has submitted the Compliance of Directives along with the
subsequent Petitions. Further, the Commission held a meeting with APDCL on
May 21, 2014 to review the status of compliance of directives issued in the MYT
Order dated November 21, 2013 for FY 2013-14 to FY 2015-16. APDCL, vide its
letter dated September 23, 2014, also submitted the report on status of
Compliance of directives issued on May 21, 2014. Further directives were issued
with tariff order of FY 2015-16, dated November 21, 2014. APDCL through its
letter dated January 31, 2015, has replied to these directives
The Commission‟s comments on the status of compliance of old and fresh
Directives by APDCL are discussed in this Chapter and further directives have
been issued, wherever necessary.
9.2 COMPLIANCE OF OLD DIRECTIVES
Directive 1: Filing of Fixed Assets Registers
APDCL is directed to file duly authenticated Fixed Assets Registers. Further, to
maintain proper and detailed Fixed Asset Registers at field offices to work out
depreciation expenses, the Commission directs APDCL to submit a report to the
Commission citing clearly as to how they are maintaining fixed assets registers for
the various assets.
Compliance by APDCL:
APDCL submitted that the Fixed Assets Registers (6 volumes) upto March 31,
2014, has been submitted.
Commission’s Comments:
The compliance of APDCL is noted. APDCL shall also submit the Report on how it
is maintaining the fixed assets registers for the various assets.
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Directive 2: File Physical Verification Report of Fixed Assets
APDCL is directed to file the verification report of Fixed Assets by a competent
and reliable authority at the end of each financial year beginning with FY 2005-06
and onwards.
Compliance by APDCL:
APDCL submitted that for the physical verification of the Fixed Assets, an
outsourced consultants has already been appointed and they are actively
engaged for the work. APDCL further submitted that the report is expected soon
and APDCL will be able to submit the report within the targeted date of 30th
November 2015.
Commission’s Comments:
APDCL should submit the Physical Verification Report to the Commission latest by
November 30, 2015.
Directive 3: Circle-wise Trajectory for Loss Reduction:
APDCL is directed to fix-up circle-wise trajectory for loss reduction and prepare a
detailed action plan for reduction of Distribution and AT&C losses. APDCL should
submit the Report on loss levels vis-a-vis the loss reduction target for each circle,
on a six-monthly basis.
Compliance by APDCL:
APDCL had submitted the circle wise distribution loss level trajectory for the next
five years. APDCL submitted that several measures have been undertaken by it to
reduce distribution loss and improve the collection efficiency. Further, APDCL
submitted that to strengthen the distribution network, they are undertaking
investment under various schemes and also undertaking various other measures,
details of which have been provided.
APDCL submitted that with the completion of the projects and measures stated as
above the distribution loss has come down to 20.16% during FY-14-15
Commission’s Comments:
The Commission appreciates the efforts being taken by APDCL to reduce the
distribution losses in different circles, however, more focussed efforts should be
put by APDCL for achieving the targets set in accordance with the investment
144
made..
Directive 4: Database on TOD consumption
The Commission intends to extend the benefit of TOD tariff to other HT category
consumers. The Commission directs that the Load Research Cell under the
Discom should collect more data of other HT category consumers and submit to
the Commission for making a database on TOD consumption.
Compliance by APDCL:
APDCL has submitted a report on the TOD consumption of other HT categories
not covered under TOD Tariff is in compliance with the directive of the
Commission.
Commission’s Comments:
The Commission has not received the required data of ToD consumption of other
HT consumers. As such, APDCL is once again directed to submit the required
data at the earliest.
Directive 5: Pilferage of Energy
For curbing theft of power, APDCL is directed to constitute a task force in each
zone to carry out massive raid to arrest pilferage.. Also, if anyone is found
committing mischief of pilferage, required penal action should be taken in such
cases.
Compliance by APDCL:
APDCL submitted that as per Commission‟s instructions, a „Task Force‟ under
each zone has been formed for constant monitoring of the anti-power-theft
operation to be conducted jointly by the Special P.S.in coordination with the
APDCL offices in the respective jurisdiction of the said P.S. Also, APDCL
submitted the performance report of the special police stations from August‟2014
to December‟2014.
Commission’s Comments:
The compliance of APDCL is noted. APDCL should continue to adopt measures
for curbing theft of power.
Directive 6: Energy Audit and Demand Side Management
The energy audit should be taken up first in all the towns with a population of fifty
145
thousand and above. The first status report on the action taken for energy audit in
all the towns should be reported to the Commission by end September, 2011 to
issue further directives in this regard, if required.
Regarding DSM, the Commission had directed APDCL to constitute a DSM Cell
for carrying out load research, formulation of DSM Plans, design, development
and implementation of DSM activities, etc. The Commission directs that a status
report on the activities of DSM Cell be submitted
Compliance by APDCL:
In compliance to the directive, APDCL submitted that under the ongoing DSM
program of APDCL, a consumer survey is being carried out by the external
consultants and the work is expected to be completed by January‟ 2015. APDCL
further submitted that it has submitted the progress report in this regard to the
Commission.
Commission’s Comments:
The Commission is concerned with the delay in compliance of this directive. The
report of energy audit as well as the DSM plan has not been submitted by APDCL
till now. APDCL is directed to expedite the compliance of this directive and should
give more focus on energy audit and DSM. If required, APDCL should also appoint
external agencies for implementation of the directive. The Commission in this
order has also allowed additional provision of Rs. 1 Crore for incurring expenses
on DSM and energy efficiency inititatives.
Directive 7: Annual Accounts
APDCL is directed to ensure that the annual accounts are completed and audited
by the Accountant General in time.
Compliance by APDCL:
Audited annual accounts for 2013-14 is submitted.
Commission’s Comments:
The true-up is done based on audited accounts and there is delay in issue of final
ARR order if the audited accounts are not available on time. APDCL should
ensure that the audited accounts of the past year are submitted along with the
ARR petitions each year by 1 December.
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Directive 8: Employee Cost
APDCL is directed to enforce economy and austerity measures in their operations
and take steps to reduce establishment cost by utilizing the existing man-power
optimally, and imposing restriction on creation of posts and introducing revised
work load norms. Further, APDCL is also directed to identify surplus staff and
deploy them after proper training, in the area of customer service, in the meter
reading, billing and revenue realization so as to provide better service to the
consumer. The first report on the action taken may be sent to the Commission by
30, June 2011.
Compliance by APDCL:
APDCL submitted that the required report is being prepared and will be submitted
to the Commission.
Commission’s Comments:
The Commission directs APDCL to expedite the pending work and submit the
report to the Commission at the earliest.
Directive 9: Pending Applications for Connection/Augmentation
A report on the expansion of the Sishugram sub-station capacity as well as the
status of other pending industrial small scale sector and other industrial
applications, etc., may be submitted to the Commission before 30 June, 2011.
Compliance by APDCL:
In response to the compliance of directive, APDCL submitted the status of pending
HT applications (above 20 KW) of APDCL as on December 31, 2014. A total 38
such applications were reported to be under process.
Commission's Comments:
The compliance of APDCL is noted. APDCL should ensure that the standard of
performance in this regard should be met..
Directive 10: Improvement in quality of service
APDCL is directed to take appropriate steps to improve the quality of service,
especially quality of supply to its consumers. The quality of power being supplied
to consumers, especially in the rural areas needs substantial improvement.
147
Adequate steps need to be taken so that reliable, uninterrupted and quality power
is made available to the consumers.
Compliance by APDCL:
APDCL submitted that it is trying its best for providing better quality and reliability
power to its esteemed consumers. APDCL further submitted that remarkable
improvement in quality of service has been noticed during the FY-14-15 and
further improvement will be achieved with the implementation of all ongoing
projects under different schemes and through proper monitoring with the help of
ERP. APDCL has submitted the data related to reliability indices like CAIFI and
CAIDI as a part of compliance report of SoP.
Commission's Comments:
While, the Commission recognized the efforts of APDCL, it is also observed that
there is a large scope of improvement in quality of supply and service. APDCL
should take required steps for improving quality of supply and service.
Directive 11: Prepaid Meters
APDCL should implement prepaid metering initially as a pilot study and based on
the pilot, should take required steps to increase the coverage of prepaid meters.
Compliance by APDCL:
APDCL submitted that the replacement of the stopped defective meters of all
Government departments is complete. They submitted that under RAPDRP,
17000, single phase and 2000,three phase prepaid meters have been procured
for 9 project areas and the meters are being installed with preference given to
Government departments. They also submitted that 99 number of prepaid meters
have been procured under single window platform for mobile towers.
Commission’s Comments:
The Commission has taken a note of the efforts made by APDCL for replacement
of defective meters in Government departments. However, for pre-paid meters
and replacement of other defective meters, APDCL needs to expedite the
measures fo the same. The Commission has allowed Rs. 10 Crores in this regard
in this order and APDCL should finalize the funding arrangements for this amount ,
at the earliest.
Directive 12: Voltage wise Cost of Supply and Cross Subsidy
148
APDCL is directed to carry out a study to ascertain voltage-wise and consumer
category-wise cost of supply. APDCL may appoint a consultant if necessary to
carry out the study. However, APDCL fully familiarize themselves with the subject
so that they are in a position to take up such studies themselves in future. The
progress on this study shall be reported to the Commission every month.
Compliance by APDCL:
APDCL submitted that a detail study has been conducted in this regard and a
comprehensive report is being prepared which will be submitted along with the
MYT Tariff petition for the control period of 2016-19.
Commission's Comments:
APDCL should submit the complete voltage wise Cost of Supply Report along with
the detailed calculations along with the next Tariff Petition..It has to be noted that
the study should be based on proper sampling considering the representations
from different categories, circles, division(based on revenue and geographies).
APDCL should also substantiate the distribution loss levels reported at different
voltage levels.
Directive 13: Spot Billing
In order to improve the efficiency and accuracy of billing, spot billing should be
taken for the LT consumers. The prices of Handheld devices have come down
considerably and many utilities are successfully implementing these procedures.
APDCL shall initiate action in this regard and the progress in this matter may be
shared with the Commission.
Compliance by APDCL:
APDCL submitted that Discom is gradually increasing the use of Spot Billing for
billing purposes APDCL further submitted that a total of 2048 consumers are billed
using SBM as on January 31, 2015.
Commission’s Comments:
The Commission has observed that very few consumers are currently being
covered under spot billing. APDCL should increase the coverage of spot billing
facility and also should also explore additional possibilities like taking photos of
meter reading for improving spot billing efficiencies. Also, for very high value
consumers like mobile towers, automatic reading option can also be explored. The
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idea is to improve the billing efficiency and reduce losses.
Directive 14: Independent third party meter testing arrangement
APDCL is directed to establish necessary arrangements for independent .third
party meter testing. Further, APDCL should establish more number of testing
laboratories in each circle to test more number of meters, either new or defective.
Compliance by APDCL:
APDCL submitted that it has decided to set up a third party meter testing
laboratory in the premises of Jorhat Engineering College and APDCL has
submitted the action taken report In this regard to the Commission.
Commission's Comments:
The Commission has noted the compliance of APDCL.
Directive 15: Efficient meter reading billing and collection
APDCL should streamline the commercial processes to ensure timely meter
reading, billing and collection. Also, supervisory officers must counter-check the
meter readings taken by the meter readers. Further, the Licensee now shall
conduct billing through Meter Reading Instrument (MRI) for all HT consumers and
large non-domestic consumers.
The monthly meter reading of HT services shall be entrusted to a Committee of
high level officers of the APDCL..APDCL shall issue suitable instructions in this
regard immediately and the Licensee shall also review the percentage of check
readings and take action in case of variation between normal meter reading read
by meter reader and the check meter reading taken by the officers of the APDCL.
Compliance by APDCL:
APDCL submitted that all meters of HT consumers have been replaced with CMRI
compatible meters and CMRI download are taken on bi-monthly basis. Further
APDCL submitted that meter data of RAPDRP project areas which have already
gone live, are directly received in data centre and hence, CMRI downloads are not
required to be done in those areas.
APDCL has submitted the status of circle wise CMRI download.;
As per the data, that the number of consumers for whom meter data is received
directly in the data centre under RAPDRP is 4460 and CMRI data is collected and
analyzed in the HVCMS cell of APDCL and a quarterly report is prepared
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accordingly. The details of the revenue assessed and revenue realized from these
reports is submitted to the Commission.
Commission’s Comments:
The compliance of APDCL is noted. Considering the benefit of initiatives taken,
APDCL can consider extending the initiatives to some high value LT categories
also.
Directive 16: Replacement of old electromechanical meters with static
meters
A report on the status of metering, type of meters provided in HT and other high
value LT installations along with a programme for replacement of such meters with
static meters shall be submitted to the Commission by July, 2011.
Compliance by APDCL:
In compliance to directive, APDCL has submitted the status of meters replaced
under RAPDRP scheme. APDCL has replaced a total of 211856 no. of single
phase meters and 17458 no. of three phase meters have been replaced till
date.APDCL further submitted that the status on replacement of stopped /defective
meters of APDCL is reported in the SOP report.
Commission’s Comments:
APDCL is directed to take more efforts to replace more electro-mechanical meters
with Static Digital meters and the latest status report for the entire State of Assam,
including the areas not covered under R-APDRP, should be submitted to the
Commission within 3 months of issue of this order. APDCL shall also submit a
time bound plan for replacement of defective or electro-mechanical meters of
these consumers Commission within 3 months of issue of this order.
Directive 17: Management Information System
The Board is directed to take urgent steps to build a credible and accurate
database and Management Information System (MIS) to make information
available on operational and financial issues and get such data updated on
monthly basis.
Compliance by APDCL:
APDCL submitted that for areas not covered under RAPDRP, MIS reports will be
generated in the ERP system being implemented in APDCL with TCS as the
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implementation agency. The reports will be available in the ERP system post go
live of the pilot locations. The first set of pilot locations are expected to go live
within 2015
Commission's Comments:
The Compliance of APDCL is noted. APDCL should try to complete the initiative of
ERP implementation in a time bound manner.
Directive 18: Energy conservation
APDCL should take required energy conservation measures such as use of
energy efficiency lighting, high efficiency and standard make household
appliances, high efficiency pumpsets preferably with labels of Bureau of Energy
Efficiency (BEE) and other energy conservation devices. All categories of
consumers should be well apprised of the newly developed latest energy
conservation devices so that the energy conserved can be utilized for more
productive purposes and in consonance with the direction issued by the Ministry of
Power, Government of India.
Compliance by APDCL:
APDCL submitted that under the ongoing DSM program in APDCL consumer
survey is being carried out by the appointed consultants and will be completed
within January‟ 2015 and the consultant EESL is expected to give the DSM Plan
by March 2015.The details of the DSM activities for APDCL as on 31st December
2014 are shared.
Commission's Comments:
It is observed that the EESL was expected to give the DSM Plan by March 2015
but no such report has been submitted to the Commission. .APDCL is directed to
submit the DSM plan at the earliest, along with details of planning for sourcing of
funds for implementation of initiatives suggested.
The Commission has notified the Assam Electricity Regulatory Commission
(Demand Side Management) Regulations, 2011 on 10 April, 2012. The
Commission hereby directs APDCL to submit the DSM Plan formulated in
accordance with these Regulations to the Commission.
Directive 19: Consumer education and awareness
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The Commission now directs APDCL to take immediate measures for creating
consumer awareness through the print/electronic media, hold meetings at different
levels and publish the information as directed on the reverse of the electricity bills.
Compliance by APDCL:
APDCL submitted that an approximate cost of 52 lakhs has been estimated for
public awareness campaign of APDCL. APDCL has shared the details of the
budget in this regard with the Hon‟ble Commission.
Commission’s Comments:
The Commission observes that although steps were initiated by the Company,
further initiatives need to be taken. Considering this, the Commission has already
allocated special provision for consumer awareness and DSM initiatives.
Directive 20: Standards of Performance
APDCL is directed to furnish to the Commission, the reports of SoP as per the
regulations of the Commission, every quarter and in a consolidated annual report
for each financial year.
Compliance by APDCL:
APDCL submitted that the SOP reports have been submitted to AERC on
quarterly basis.
Commission’s Comments:
The submission of SoP reports is a continuous exercise and as such, APDCL is
required to submit these reports on periodical basis, as per applicable regulations.
Directive 21: Recovery of Past dues
APDCL should submit the report indicating circle-wise pending past dues of the
consumer till March 2013, and initiatives taken for recovery of such past dues.
Compliance by APDCL:
APDCL submitted that special revenue recovery drives are being held from time to
time to recover past dues. The details of the most recent revenue recovery drive
held from 16th November 2014 to 31st December 2015 are submitted to the
Commission. Further APDCL submitted that the Government of Assam has
already made payment of Rs 108 Crore, as such there is no Government
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outstanding as on 31st March 2013.
Commission’s Comments:
APDCL is further directed to do an aging analysis of arrears and submit the report
along with plan for recovery to AERC within 6 months of issue of the order.
Directive 22: Load Survey
APDCL shall undertake load survey for all Government connections/Utility officials,
on a priority basis to assess the present connected load realistically, and modify
its consumer records accordingly, in order to recover the fixed charges based on
the correct level of connected load, within six months of issue of this Order.
Compliance by APDCL:
APDCL submitted that the load survey of all Government consumers has been
completed and report has been submitted to the Commission. APDCL further
submitted that the load survey of autonomous bodies and local bodies will be
taken up and the work is expected to be completed by October 2015. Further
load survey of all consumers of APDCL is expected to be completed by June
2016.
Commission’s Comments:
The Commission has noted the compliance of APDCL.
Directive 23: Interest on Consumer’s Security Deposit
Interest on Consumers‟ Security Deposit has to be paid/adjusted in the bills of all
the consumer categories, in accordance with the EA 2003 and AERC (Electricity
Supply Code and Related Matters) Regulations, 2004 (First Amendment), 2007,
since the same is being allowed to be recovered through the ARR and tariff.
Compliance by APDCL:
APDCL submitted that the software to calculate interest on consumer security
deposits has been integrated in every billing office of APDCL and accordingly
payment are being made to the consumers in a phase wise manner.
Commission’s Comments:
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Despite the directions of the Commission, it is observed that APDCL is not paying
interest on security deposit for all consumers. Further, for FY 2015-16, they have
not projected any amount under this head. The Commission directs APDCL to
expedite the required steps to implement this directive and ensure this amount is
paid to all consumers.
Directive 24: Distribution Franchisees (IBDF Scheme)
APDCL shall submit all details of franchisee schemes, including number of
feeders, number of agencies, revenue and collection (before and after handing
over to Franchisee), rate at which power is sold to Franchisee, etc.
Compliance by APDCL:
The details of the franchisee scheme is submitted by APDCL to the Commission.
Also, APDCL has submitted the revised BST rate for older IBDF. Also,
performance report of existing franchisee is submitted.
Commission’s Comments:
The compliance of APDCL is noted. APDCL should ensure proper that monitoring
framework is in place for performance monitoring and management of these
franchisees.
Directive-25: Filing of complete Petitions within the scheduled dates
It has been observed that the Petitions are not being filed on time, and even after
filing of the Petitions, the necessary data and clarifications are not submitted on
time, leading to delays in the tariff determination process. The Commission directs
APDCL to ensure that the Petitions are filed on time, and all the necessary data
and clarifications are submitted along with the Petition itself.
Compliance by APDCL:
APDCL has noted the directive for future compliance.
Commission’s Comments:
The Commission directs APDCL to ensure compliance of this directive for the tariff
petitions of ensuing years.
Directive-26: Calculation of depreciation in accordance with the AERC Tariff
Regulations
It has been observed that APDCL does not submit the calculations of depreciation
strictly in accordance with the AERC Tariff Regulations, 2006, and claims
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depreciation on assets funded through grants and consumer contribution also.
The Commission directs APDCL to ensure that in subsequent Petitions, the
depreciation is computed strictly in accordance with the AERC Tariff Regulations,
2006.
Compliance by APDCL:
APDCL submitted that it is committed to comply with the directives.
Commission’s Comments:
The compliance of APDCL is noted.
9.3 NEW DIRECTIVES
Directive-1: Discrepancy in transmission loss in the petitions of AEGCL and
APDCL: It is directed that AEGCL and APDCL should coordinate and ensure that
such discrepancies do not occur in future filings.
Directive-2: Separate Tariff provision for 132 KV consumers:Within 3 months
of issue of this order, APDCL shall submit the details like number of consumers,
connected load and sales of such HT consumers having connected load of above
5000 kVA .
Directive-3: Monitoring of Power Procurement
APDCL should submit a quarterly report covering the plan for the ensuing quarter
and the progress of actual power procurement for the last quarter
Sd/-
(D. Chakravarty)
Member, AERC
Sd/-
(N. K. Das)
Chairperson, AERC
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10. Schedule of Tariff
This chapter lists the tariffs which are applicable in the State of Assam with effect
August 01, 2015 until replaced by another order of the Commission.
For the purpose of this schedule, the consumers are divided into two distinct
groups based on consumption and the nature of supply. The consumers are
further divided into categories that are supplied electricity at LT and HT voltages.
LT GROUP
Supply Voltage 1 Ph, 230 V AC and 3 Ph, 415 V AC
LT Category-1 Jeevan Dhara:
Applicability
This Tariff shall be applicable for supply of power to any premises exclusively for
the purpose of own requirements with a Connected Load of not more than 0.5 kW
and consumption upto 1 kWh/day or 30 kWh per month.
(a) Tariff :
Consumption Energy Charge Fixed Charge
Without Govt Subsidy
With Existing Govt Subsidy*
For consumption upto
30 kWh per month.
Rs.
4.10/kWh
Rs.
2.79/kWh
Rs. 15 per connection per
month
*The rate of Existing Govt Subsidy is the subsidy declared by Govt after the Tariff Order
dated November 21, 2014
N.B: -The above determined energy charge for LT-I Jeevan Dhara Category is
contingent on payment of subsidy as agreed by Govt of Assam. Without the
Government subsidy, the rates contained in the full cost recovery tariff schedule
shall become operative.
If, during any billing period the consumption exceeds the stipulated
1 kWh/day or 30 kWh per month the consumers will be considered as if they are
shifted to the next appropriate higher category.
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(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made in full on
or before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category –II: Domestic _A.
Applicability
This tariff shall be applicable for supply of power to consumers having connected
load below 5 kW for residential premises, exclusively for domestic purposes only.
This shall also include supply of power to occupants of flats in multi storied
buildings, if the premises have not been classified under Domestic B or HT
Domestic and receiving bulk power at single point without any individual metering
arrangements for domestic purposes.
(a) Tariff
Consumption Energy Charge Fixed Charge
Without Govt
Subsidy
With Existing
Govt Subsidy*
0 – 120 kWh per month Rs. 4.95/kWh Rs. 3.94/kWh Rs. 30/kW/ month
121 – 240 kWh per Month Rs. 6.25/kWh NA Rs. 30/kW/ month
Balance kWh Rs. 7.25/kWh NA Rs. 30/kW/ month.
*The rate of Existing Govt Subsidy is the subsidy declared by Govt after the Tariff Order
dated November 21, 2014
N.B: -The above determined energy charge for LT-II Domestic A Category is
contingent on payment of subsidy as agreed by Govt of Assam. Without the
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Government subsidy, the rates contained in the full cost recovery tariff schedule
shall become operative.
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
load below 0.5 kW, connected load shall be rounded off to 0.5 kW.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof in simple interest shall be levied, if payment is not made in full on
or before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by local cheque/DD,
Commission shall be borne by the consumers.
(d) The Tariff does not include any tax or duty, etc., on electrical energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
NOTE:
If any part of the domestic connection is utilised for any use other than dwelling
purpose like commercial, industrial, etc., the entire consumption shall be treated
as the case may be, for corresponding category and the respective tariff shall be
applied for the entire consumption.
LT Category-III: Domestic-B
Applicability
This tariff shall be applicable for supply of power to consumers having Connected
Load 5 kW and below 20 kW exclusively for domestic purposes only. This shall
also include supply of power to occupants of flats in multi storied buildings,
receiving bulk power at single point with individual metering for domestic
purposes.
Tariff:
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Energy Charge Fixed Charge
For all consumption. Rs 6.85/kWh Rs. 30/kW/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
(a) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(b) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by local cheque/DD,
Commission shall be borne by the consumers.
(c) The Tariff does not include any tax or duty, etc., on electrical energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
NOTE:
If any part of the domestic connection is utilised for any use other than dwelling
purpose like commercial, industrial, etc., the entire consumption shall be treated
as the case may be, for corresponding category and the respective tariff shall be
applied for the entire consumption.
LT Category-IV: LT Commercial
Applicability
This tariff shall be applicable for supply of power to consumers having Connected
Load below 20 kW to all establishments and institutions of commercial nature and
connected with trading activities, including commercial offices, Government. and
public sector commercial installations, commercial houses, optical houses, shops,
hotels, restaurants, bars, refreshment stalls, showcases of advertisements,
theatres, cinema halls, guest houses, laundries, dry-cleaners, Railway stations,
public and private bus-stands not covered under any other category of consumers,
copy works, X-ray installations, private nursing homes/clinical laboratories,
photographic studios, battery charging units, workshops, petrol pumps, factory &
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printing presses not using motive power in the manufacturing process, private
educational and cultural institutions, lodging and boarding houses.
(a) Tariff
Energy Charge Fixed Charge
Without Govt
Subsidy
With Existing
Govt Subsidy*
Upto 120 units/month
Rs. 7.55/kWh
Rs. 6.95/kWh Rs. 110/kW/month
Above 120
units/month
NA
*The rate of Existing Govt Subsidy is the subsidy declared by Govt after the Tariff Order
dated November 21, 2014
N.B: -The above determined energy charge for LT-IV Commercial Category is
contingent on payment of subsidy as agreed by Govt of Assam. Without the
Government subsidy, the rates contained in the full cost recovery tariff schedule
shall become operative.
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
load below 0.5 kW, connected load shall be rounded off to 0.5 kW
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof in simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by local cheque/DD,
Commission shall be borne by the consumers.
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
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consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty, etc., on electrical energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category V- LT General Purpose Supply
Applicability
This tariff shall be applicable for supply of power to consumers having Connected
Load below 20 kW to all Non-commercial and Non-domestic users of electric
power like Government offices, Semi-Government Educational and cultural
institutions, Government hospitals, dispensaries, Charitable institutions and Trusts
(public or private formed solely for charitable or religious purposes),
Dharamshalas, Non-commercial boarding and lodging houses and other Non-
commercial institutions.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 6.35/kWh Rs. 125/kW/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
load below 0.5 kW, connected load shall be rounded off to 0.5 kW.
Surcharge for delayed payment: Surcharge @ 1.5% per month or part thereof at
simple interest shall be levied, if payment is not made on or before the due date.
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(b) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(c) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(d) The Tariff does not include any tax or duty, etc., on electrical energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category VI-Public Lighting
Applicability
This tariff is applicable to supply of power for street lighting systems in
Municipalities, Town Committees and Panchayat, etc., Signal systems in roads
and park lighting, in areas of Municipality/Town Committee/Panchayat, etc.
(a) Tariff
Energy Charge Fixed Charge
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For all consumption. Rs. 6.40/kWh Rs. 120/kW/month
N.B. In case any unmetered supply is provided in exigency, the energy shall be
assessed considering 12 hours per day burning hours for the energy charge. For
example, if the total connected load of the street light service is 1 kW, energy shall
be asses as 12 units per day.
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
load below 0.5 kW, connected load shall be rounded off to 0.5 kW.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category VII-Agriculture
Applicability
This tariff shall be applicable for supply of power for agriculture / irrigation purpose
in the agricultural sector for pump sets upto 7.5 HP.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 4.30/kWh Rs. 30/kW/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
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load below 0.5 kW, connected load shall be rounded off to 0.5 kW.
Surcharge for delayed payment: Surcharge @ 1.5% per month or part thereof at
simple interest shall be levied, if payment is not made on or before the due date.
(b) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable): For all payments made by DD, Commission shall be
borne by the consumers.
(c) The Tariff does not include any tax or duty, etc., on electrical energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category VIII – Small Industries
Applicability
This tariff is applicable for supply of power for industrial purposes having licence
from designated authority of appropriate Government and not covered under any
other category, for consumers having Contract Demand/Connected Load below 25
kVA (20 kW).
(a) Tariff
Energy Charge Fixed Charge
Without Govt Subsidy
With Existing Govt Subsidy*
(i) Rural Industries - Upto 120 units/month
Rs. 4.85/kWh Rs. 4.55/kWh Rs. 30/kW/month
(ii) Rural Industries - Above 120 units/month
NA
(iii) Urban Industries - Upto 120 units/month
Rs. 5.10/kWh Rs. 4.80/kWh Rs. 40/kW/month
(iv) Urban Industries - Above 120 units/month
NA
*The rate of Existing Govt Subsidy is the subsidy declared by Govt after the Tariff Order
dated November 21, 2014
N.B: -The above determined energy charge for LT-VIII Small Industries
Category is contingent on payment of subsidy as agreed by Govt of Assam.
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Without the Government subsidy, the rates contained in the full cost recovery tariff
schedule shall become operative.
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5. For consumer having connected
load below 0.5 kW, connected load shall be rounded off to 0.5 kW.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category IX: Temporary Supply:
Applicability
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This Tariff will be applicable for electric supply of power at LT which is temporary
in nature for a period not exceeding one month.
Charges
Domestic Rs. 80/kW/day or Rs. 8.75/kWh whichever is higher
Non Domestic non
agricultural
Rs.125/kW/day or Rs. 10.85/kWh whichever is
higher
Agricultural Rs. 50/kW/day or Rs. 4.50/kWh whichever is higher.
HT GROUP
Tariff for this group is applicable for those consumers availing power supply at 11
kV or above. Calculations shall be deemed to be in kVA for consumers under this
part of the tariff schedule. However, consumers above 25 kVA connected load and
drawing power at LT are also covered under this group. During the period of
conversion from LT supply to HT supply, the consumer shall have to pay the
necessary compensatory charges (10% & 3% of total energy consumption for LT
line & DTR respectively).
HT Category I: HT Domestic
Applicability
This tariff shall be applicable for supply of power to consumers having Connected
Load 25 kVA and above to residential premises, exclusively for domestic purposes
only. This shall also include supply of power to occupants of flats in multi storied
buildings/ residential colony, receiving bulk power at single point with single
metering for domestic purposes.
(a) Tariff:
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Energy Charge Fixed Charge
For all consumption. Rs 6.80/kWh Rs 30/kVA/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
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(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
NOTE:
If any part of the domestic connection is utilised for any use other than
dwelling purpose like commercial, industrial etc. the entire consumption
shall be treated as the case may be, for corresponding category and the
respective tariff shall be applied for the entire consumption.
HT Category-II: HT Commercial
Applicability
This tariff shall be applicable for supply of power to consumers having Connected
Load 25 kVA and above to all establishments and institutions of commercial
nature and connected with trading activities, including commercial offices,
Government and public sector commercial installations, commercial houses,
optical houses, shops, shopping malls, restaurants, hotels, bars, refreshment
stalls, showcases of advertisements, theatres, cinema halls, guest houses,
laundries, dry-cleaners, Railway stations, public and private bus-stands not
covered under any other category of consumers, copy works, X-ray installations,
private nursing homes/clinical laboratories, photographic studios, battery charging
units, workshops, petrol pumps, factory & printing presses not using motive power
in the manufacturing process, private educational and cultural institutions, lodging
and boarding houses.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 7.55/kWh Rs. 115/kVA/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
169
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category - III: Public water Works
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Applicability
This tariff is applicable for public water supply maintained by Government or
Government Corporations, Municipalities, Town Committees and Panchayats.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 6.05/kWh Rs. 125/kVA/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
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(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category – IV: Bulk Supply
Applicability
This tariff is applicable to Bulk consumers with a Connected Load not less than 25
kVA provided that the consumers not covered by any other category such as any
domestic connection, industries, tea, etc., and who make their own internal
distribution arrangement at their own cost and receive power at the point of supply
at high or extra high voltage. This is further classified as under:
(i) Government educational institution-like universities, engineering colleges,
medical colleges with residential facilities and
(ii) Others - categories not included in any of the above categories, including
Government offices, Railways, Military Engineering Services, etc.
(a) Tariff
(i) Bulk Government educational institutions
Energy Charge Fixed Charge
For all consumption. Rs. 6.45/kWh Rs. 110/kVA/month
(ii) Others
Energy Charge Fixed Charge
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For all consumption. Rs. 7.25/kWh Rs.145/kVA/month
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for
a group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed
@ 3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time , Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
173
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (A): HT Small Industries;
Applicability
This tariff is applicable for supply of power for industrial purposes having licence
from designated authority of appropriate Government and not covered under any
other category, for consumers with Connected Load above 25 kVA and upto 50
kVA, irrespective of location of the industry in rural area or urban area.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 5.60/kWh Rs. 40/kVA/month
For the purpose of determination of Monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
174
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(d) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable): For all payments made by DD, Commission shall be
borne by the consumers.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (B)-HT-I Industries
Applicability
This tariff is applicable for supply of power to industrial consumers having licence
from designated authority of appropriate Government and not covered under any
175
other category, at a single point for industrial purposes with Contract
Demand/Connected Load above 50 kVA to 150 kVA.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 6.25/kWh Rs. 100/kVA/month
TOD tariff
Time of Day (TOD) tariff for HT-I industries
Description Energy charge
Time Rs./kWh
0600 hrs to 1700 hrs (normal) 6.25
1700-2200 hrs (peak) 8.50
2200-0600 hrs (night ) 5.60
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
176
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable): For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (C): HT-II Industries
Applicability
177
This tariff is applicable for supply of power at a single point for industrial
purposes having licence from designated authority of appropriate Government
and not covered under any other category, for Contract Demand/Connected
Load above 150 kVA.
(a) Tariff
Energy Charge Fixed Charge
Option -1. Rs. 6.85/kWh Rs. 140/kVA/month
Option -2 Rs. 6.00/kWh Rs. 270/kVA/month
A consumer may opt for any one option depending on his requirements by prior
intimation to concerned billing unit of Discom. A consumer may change his option
only after six months of availing that particular option.
TOD tariff for Option-1 above (only), no TOD Tariff will be applicable for
consumers opted for option-2. However, supplier may impose peak hour
restriction due to system constraints.
T.O.D tariff for HT-II industries
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 6.85
1700-2200 hrs (peak) 8.30
2200-0600 hrs (night) 6.35
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
178
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option are not made by the
consumer within the stipulated time, 100% of the Connected Load
converted to kVA shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
179
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VI-Tea, Coffee and Rubber: Seasonal
Applicability
This tariff is applicable for tea, coffee and rubber plantation/production by
utilisation of electrical power in factory, irrigation, lighting etc. in the Estate.
(a) Tariff
(i) Seasonal Tariff (April to November)
Energy Charge Fixed Charge
For all consumption. Rs. 6.75/kWh Rs. 230/kVA/month
TOD tariff applicable
T.O.D tariff for Tea, Coffee & Rubber
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 6.75
1700-2200 hrs (peak) 8.55
2200-0600 hrs (night) 6.50
Off- Season Tariff (December to March)
Off-Season energy charge for Tea, Coffee and Rubber is Rs. 6.75 / kWh.
Consumer under this category shall have the option to select any continuous
maximum 4 (four) months period between September to March in lieu of normal
off-season period of December to March. Such option must be exercised on or
180
before 31st August of every year.
Off-Season fixed charge for Tea, Coffee & Rubber minimum 40% of contracted
demand during season period.
No benefit of ToD tariffs can be availed by consumers if they opt for the off season
tariff option during off-season period.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing additional
energy consumption on account of transformer loss computed @ 3% on the
consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 65% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand. Contract Demand for off-season shall be
minimum 40% of the seasonal Contract Demand.
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(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) In the event that it is not possible to measure availability to a particular
consumer, Fixed Charge @ Rs.230/kVA will be applicable.
(i) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VII - Oil and Coal
Applicability
This tariff shall be applicable for supply of power to consumers at a single point for
installations of Oil and Coal Sector.
(a) Tariff
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Energy Charge Fixed Charge
For all consumption. Rs 7.35/kWh Rs. 270/kVA/month
(i) T.O.D Tariff
T.O.D tariff for Oil & Coal
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 7.35
1700-2200 hrs (peak) 9.10
2200-0600 hrs (night) 7.10
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing additional
energy consumption on account of transformer loss computed @ 3% on the
consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
183
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) In the event that it is not possible to measure availability to a particular
consumer, Fixed Charge @ Rs.270/kVA will be applicable.
(i) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VIII: HT Irrigation
Applicability
This tariff shall be applicable for electricity supply for agriculture / irrigation
purpose in the agricultural sector for pump set above 7.5 HP and for whom power
184
has been supplied at 11 kV or above.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 5.85/kWh Rs. 40/kVA/month
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(d) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
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Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category IX: Temporary Supply:
Applicability
This Tariff will be applicable for electric supply of power at HT which is temporary
in nature for a period not exceeding one month.
In case of Domestic category of consumers, the higher rating of only one
equipment shall be considered for determination of connected load if both
Geyser and Air-Conditioner (without heater) are installed and used for
domestic purpose only.
These Tariffs take effect from August 1, 2015.
This Tariff Order shall continue to be applicable until it is replaced by
another Order passed by the Commission.
This Tariff Order is signed by the Assam Electricity Regulatory
Commission on July 24, 2015.
Sd/-
(D. Chakravarty) Member, AERC
Sd/-
(N. K. Das) Chairperson, AERC
Charges
Rs. 145/kVA/day or Rs. 8.50/kWh whichever is higher
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Annexure-1
Minutes of the 19th meeting of the State Advisory Committee
held on 8th May, 2015, at Administrative Stuff College Khanapara, Guwahati
The 19th meeting of the State Advisory Committee was held at 10.30 am on 8th May, 2015, at Administrative Stuff College Khanapara, Guwahati.
The list of members and officers present is appended at Appendix – 1.
At the very outset, the Secretary, AERC, welcomed all the Members of the State Advisory Committee, Special Invitees and officers present, to the 19th Meeting of the Committee, which had been recently reconstituted vide circular dated 20.04.2015as per Section 87 of The Electricity Act, 2003. He stated that the State Advisory Committee is an important body with an objective to advise the Commission on important issues such as:
Major questions of policy;
Matters relating to quality, continuity and extent of service provided by the licensees;
Compliance by Licensees with the conditions and requirements of their licence;
Protection of Consumer Interest; and
Electricity supply and overall Standards of Performance by utilities.
He then requested the Chairperson, AERC, Shri Naba Kumar Das, IAS (Retd.) to preside over the meeting.
The Chairperson, AERC, on behalf of the Commission, extended a hearty welcome to all the Members of the State Advisory Committee.
The Chairperson informed the members that Power Point presentations would be made by the representatives of the power utilities on the overall power scenario of the State and also on the petitions submitted by each of the three utilities for revision of tariff. He requested the members to take this opportunity to raise various issues and problems being faced by the consumers and offer suggestions so that effective strategies could be worked out to improve the power position in the State. The agenda items were taken up for discussions in seriatim which are briefly recorded below.
1. Agenda No. 1: Confirmation of the Minutes of the 18th meeting of the State Advisory Committee (SAC) held on 12-08-2014
The Minutes of the 18th Meeting of the Committee was already circulated among the Members and Special Invitees. Hence, it was taken as read. No comment was received on the Minutes. With the approval of the members, the Minutes of the 18th meeting of the SAC were confirmed.
2. Agenda No. 2: Action taken on the Minutes of the 18th Meeting of SAC.
The action taken report was submitted to the members, which are summarized as below.
2.1. Peak power Tariff in consumer categories is not presently covered under the TOD Tariff. The Commission had advised APDCL to submit the required information. On receipt of the same the Commission would be in a position to take a decision.
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2.2. Regarding the Regulation of Peak Power Management it was informed that the Commission have issued the AERC DSM (Demand Supply Management) Regulations, 2012. Commission now will be take up framing the peak power Regulations.
2.3. It was appraised that the two Regulations ofAERC viz. (I) Co-generation and Generation of Electricity from Renewable Sources of Energy and (II) AERC Grid Interactive Solar PV systems have been finalized and have been sent for publication in the Assam Gazette.
2.4. The amendments to AERC (Terms & Conditions for Determination of Tariff)
Regulations, 2006 were notified in the Assam Gazette on 06.01.2015.
2.5. Chairperson, AERC requested Mr. K.V Eapen Chairman (APDCL, AEGCL and APGCL) to present a brief about the Power Availability Scenario up to the year 2019. Who shared the following stated below:
Plant Name
Maximum Availability (MW)
Date Of Commissioning
OTPC Palatana(Unit I)
120
January 2014
Farakka super Thermal Power Station
75
September 2014 to August 2016
OTPC Palatana (Merchant Power)
35 (Merchant power)
Agreement made
Damodar Valley Corporation
75
May 2015 to July 2015
Nikachhu hydro Power station
118
July 2019
TOTAL 423
3. Agenda No. 2: Present power scenario of the State.
A presentation was made by Mr M.K Adhikari GM, (APDCL) on Present power scenario of the State of Assam.
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4.1. During the presentation Mr. Bimal Phukan desired to know about the methodology
of calculation of demand by APDCL .APDCL appraised that physical demand
recorded in the system is considered to calculate demand. Mr. Bimal Phukan
objected to the same stating that during summer months (4-5months) load
shedding occurs across the state therefore the system will not record the actual
demand. APDCL confirmed that they consider substation wise recorded data for
those days of the month when no load shedding was carried out. However, Mr.
Phukan not being satisfied with the reply mentioned that the demand data is a
suppressed demand data and he apprehended that if this demand is considered
by Central Government for allocation of power then Assam will get lower allocation
of power than actual requirement.
4.2. Mr. Anup Gogoi mentioned that per capita per month consumption of Assam is
very low compared to other states of India. He opined that this may be due to the
demand reflected is not the actual demand .Actual demand may be 3000 MW as
compared to assessed demand of 1100 to 1450 MW.
4.3. Chairperson AERC mentioned that per capita consumption appears to be very
low; there is a need to analyze/ asses the actual requirement to meet demand.
4.4. Mr. Nitin Sabikhi Manager, IEX enquired about the base load of the system,
APDCL replied that the base load of the system is minimum of 600 MW
throughout the day and 750 to 800 MW during day time.
4.5. Mr Bimal Phukan desired to know about the methodology for allocation of CSGS
power. APDCL replied that Gadgil-Mukherjeeformula is used for allocation of both
hydro as well as thermal power.
The new revised Gadgil-Mukherjee formula as approved by National Development
Council (NDC) is given in the following table. Criteria for inter-state allocation of
Plan Assistance
Criteria Weight (%)
Population 55
Per capita Income 25
Fiscal Management 5
Special Problems 15
Total 100
He further enquired about the availability of Meghalaya power and the cost.
APDCL replied that Meghalaya power is available since 1988 at a rate mutually
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decided. Presently, in some areas of Mankachar and Goalpara District of Assam
power from Meghalaya is received at 11KV level.
4.6. Mr. Bimal Phukan asked about Commissioning date of Lakwa Thermal Power
Station (LTPS) and also desired to know about the projects those came up after
1978.Mr. KV Eapen replied that LTPS was Commissioned in 1978. Mr.P.
Bujarbaruah, MD (APGCL) replied that presently Namrup Replacement power
Plant (NRPP) and Lakua Replacement Power Plant (LRPP) are under
implementation.
4.7. Mr. Anup Gogoi desired to know about the present power prices in the exchange.
Mr. Nitin Sabikhi, Manager IEX replied that for the last six months exchange prices
are very low, the RTC price was `2.5 /unit and night price was less than ` 2 /Unit
for North East Region. With the present trend of growth in Generation capacity
(8to 9%) versus growth in Demand (4%). It is expected that there will be surplus
scenario in next few years and exchange prices likely to fall further.
He opined that Assam may think of replacing purchase of costlier power
with exchange power, which may lead to saving of substantial amount of power
purchase cost. He informed that States such as Haryana, Punjab Rajasthan are
already using the method of replacing costly power with cheap power from the
Exchange.
4.8. Mr. Abjijit Barooah desired to know about the internal system of APDCL to take
quick commercial decision on power purchase. Mr.KV Eapen replied that
Commercial department of APDCL is responsible for handling power purchase.
Mr. Adhikari GM (TRC), APDCL highlighted that on a daily basis (block wise)
demand supply position is assessed and decision taken regarding the power
purchase. At present APDCL meets 80% of demand from firm allocation
/Contracted supply, 5 to 10% from exchange and 5% through deviation settlement
mechanism.
5. Agenda No. 4: Tariff Proposals for FY 2015-16
Mr.SM Kalita CGM (F & A), APGCL made a presentation on APGCL Tariff Proposals for FY 2015-16.
5.1. Mr. Bimal phukan Member SAC enquired as to whether there was any break down
of the generating stations. APGCL replied that the details break down have been
submitted.
5.2. Mr. phukan further pointed out that the proposed Generation Tariff at ` 4.92 is
higher compared to the exchange price of under ` 4.00. He requested APGCL to
review this issue.
5.3. It was suggested that the long-term viability of the small gas based projects be
reviewed as a cluster of small projects may result in high O &M expenses.
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5.4. Mr. Abhijit Barooah mentioned that the average auxiliary consumption of the
stations are very high. APGCL appraised that there are three main reasons of high
auxiliary consumption
a) Because of low availability of gas machines are run on low load (40-
50%) condition. Though, some of the Auxiliary Units need to be run all
the time irrespective of loading resulting in higher auxiliary
consumption.
b) Being old the Station Heat Rates are high for the existing stations.
Besides, use of low CV gas compared to design there is requirement of
higher volume of gas which results in higher auxiliary consumption.
6. Mr. S.K. Saha CGM (F & A) AEGCL made a presentation on AEGCL Tariff Proposals for FY 2015-16.
6.1. Mr. Bimal phukan enquired about the capacity that can be handled by
AEGCL.AEGCL replied that an average of 716 MW and 806 MW were handled
during 2013-14 and 2014-15 respectively.
6.2. Mr. Nitin Sabikhi Manager IEX desired to know about the Import capacity of
AEGCL. AEGCL replied that the import capacity is 1100 MW.
7. Mr. Manoj Adhikari GM, APDCL made a presentation on APDCL Tariff Proposals for FY 2015-16.
7.1. Mr. Abhijit Barooah opined that a provision should be there to penalize the utility
for not meeting the norms set in Regulations. He further mentioned that with the
present status of revenue gap there is a need for Government to provide a
onetime fund to bring a clean slate. He enquired about the methodology of fixing
the Tariff for different categories of customers. APDCL replied that Tariff for
different categories of customers is proposed keeping in mind the guidelines of
National Tariff Policy to maintain the cross subsidy level within ± 20%.
7.2. Mr. Bimal phukan suggested that the buying and selling of power through the
exchange be carried out in a prudent manner so that the maximum benefit can be
derived out of the process. Should the need arise; personnel can be specially
trained for the purpose.
8. Agenda No. 5: Draft AERC ( Terms & Conditions for Determination of Multi Year
Tariff) Regulations, 2015
8.1. A brief presentation was made by Mr. Amit Goenka (Deloitte Touche Tohmatsu
India Pvt. Ltd.) on Multi Year Tariff Regulation. Mr. Saurabh Agarwal enquired
about the mechanism of sharing of Gain/loss in the regulations. It was replied that
the Mechanism proposed is as per model FOR Regulations. Mr. Saurabh Agarwal
further enquired as to why the incentive structure has been changed (Earlier 25
paisa which becomes 50 paisa w.e.f 1st April 2016). Mr. Amit Goenka (Deloitte
Touche Tohmatsu India Pvt. Ltd) clarified that it totally depends upon the new
Regulation. Mr. Agarwal enquired as to why AT & C Loss is not kept as an
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Efficiency Parameter. Mr. Goenka replied that as there is ambiguity in formula for
AT & C loss, distribution loss is kept as one of the efficiency parameters.
9. Agenda No. 6: Draft AERC (Payment of Fees etc.) Regulations, 2015.
A brief presentation was made by Mr. Sanjeeb Tamuli, Consultant AERC on the
Draft AERC (Payment of Fees etc.) Regulations, 2015 which was considered and
approved by the SAC.
10. Agenda No. 7: Draft AERC (Smart Grid) Regulations, 2015.
A brief presentation was made by Mr. D.K Sarmah, Joint Director (Tariff) AERC on
the Draft AERC (Smart Grid.) Regulations, 2015 which was considered and
approved by the SAC.
11. Agenda No. 8 :Any other mater
11.1. Mr. Dilip Kumr Baruah expressed that the Tariff has to go up due to prevailing
conditions however; there is a scope for moderation.
11.2. He requested to ensure 24×7 power supply and suggested the following which
may help control the Tariff.
a) Efforts should be made to Minimize cost.
b) Under utilisation of capacity should be avoided as far as possible
by taking preventive measures.
c) Execution of work should be expedited.
d) There should be policies on procurement and inventory control of
Stocks. Physical verification should be carried out at times. In
substations equipments are idle for 5 to 30 years.
e) A proper investment policy should be made by the Companies.
f) Also a disaster management cell should be set up by all the
Companies.
g) Audit report should be made available in the public domain.
11.3. He further enquired as to how many consumer complaints have been received
and whether any compensation was paid to the consumers when the complaint
was not settled in a given time.
Chairperson AERC advised that the suggestions put forward should be included in
the business plans of utilities.
12. Comments from Chairperson AERC:
Chairperson AERC mentioned that Tariff Proposals are subjected to due scrutiny and
wherever it is found that the expenditure are not justified, AERC do not allow them in
the permissible Tariff .Consequently, every year there is a difference between amount
claimed and amount allowed. Chairperson, AERC appreciated the suggestions
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offered by Mr.Dilip Kumar Baruah on better management of Inventory and also
advised the utilities to take appropriate action.
Regarding Consumer Awareness, Chairperson AERC mentioned that
Administrative staff college of India (ASCI) Hyderabad has been Commissioned to do
a study on “Effectiveness of Consumer Grievances Redressal Mechanism and
Compliance of S.O.P by APDCL.” They will also examine whether the SOPs issued
by the Commission are being followed by APDCL. Effectiveness of the consumer
redressal forum also will be evaluated. He also appraised the members about the
proposed modification in the structure of the Consumer Redressal Forum.
13. No other matter came up for discussion. The meeting ended with a Vote of Thanks to and from the chair.
Sd/-
(Naba Kumar Das)
Chairperson
Assam Electricity Regulatory Commission
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Appendix – 1
List of members present in the meeting of the State
Advisory Committee held on 8th May, 2015
1. Shri Naba Kumar Das, IAS(Retd.), Chairperson, AERC
2. Dr. Rajani Kanta Gogoi, Member, AERC
3. Shri D.Chakravarty, Member, AERC neccessary
4. Shri V.K Pipersenia, Additional Chief Secretary,GOA
5. Shri V.B Pyarelal, Additional Chief Secretary,GOA
6. Shri K.V. Eapen, Chairman, APDCL, AEGCL & APGCL
7. Shri R.L. Barua, MD, APDCL
8. Shri P. Bujarbaruah, MD, APGCL
9. Shri G.K.Das, MD, AEGCL
10. Shri Arup Kumar Dutta, President, AASIA.
11. Dr. Shree Birendra Kumar Das, President, Grahak Suraksha Sanstha, Guwahati.
12. Shri Bharat Saikia, Secretary, Grahak Suraksha Sanstha, Guwahati
13. Shri Anuj Kumar Baruah, AASSIA, President,Bamunimaidam, I/E Guwahati
14. Shri Saurabh Agarwala, FINER, Member
15. Shri Ranjit Kumar Barua ABITA,GS Road
16. Smt. Utpala Saikia, Deputy Secretary, Power Deptt., Dispur.
17. Shri Kulendra Talukdar, Joint Secretary Agriculture, Dispur.
18. Shri Akhil Sarma Under Secretary Finance Deptt, Dispur.
19. Shri Nitin Sabikhi, Manager IEX, New-Delhi.
20. Shri Abhinandan Goswami, R.M IEX, New-Delhi
21. Shri Bimal Phukan, Public
22. Shri Anup Gogoi, Prof Deptt. EEE IITG
23. Shri Dilip Kumar Baruah, Former Principal Cotton College
24. Shri Abhijit Barooah, CII North East
25. Smt.Joyshree Das Verma, Chairperson FICCI
Officers of AERC
1. Shri SK Roy (ACS, Retd.)Secretary AERC
2. Shri A.k..Barthakur, Senior Consultant,AERC
3. Shri D.K. Sarmah, Joint Director (Tariff), AERC
4. Shri T. Mahanta, Deputy Director (Engg) AERC
5. Shri A. Purkayastha, Deputy Director (Finance) AERC
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6. Ms. Panchamitra Sarma, Consultant (Finance, Database and Consumer Advocacy Cell) AERC.
7. Shri N.K. Deka, Consultant (Technical), AERC
8. Shri Sanjeeb Tamuli, Consultant AERC
9. Shri Jayjeet Bezbaruah, Consultant,AERC
