CHAMUNDESWARI ELECTRICITY SUPPLY CORPORATION …

CHAMUNDESWARI ELECTRICITY SUPPLY CORPORATION LIMITED, MYSORE

Annual Performance Review for FY-18

for Distribution and Retail Supply

Business of CESC, Mysore.

Filed on 30.11.2018

Before

Karnataka Electricity Regulatory Commission,

Bengaluru.

CESC Mysore-APR FY-18

BEFORE THE KARNATAKA ELECTRICITY REGULATORY

COMMISSION, BENGALURU FILE NO.___________

CASE NO.___________

In the Matter of

An application for Annual Performance Review (APR) for FY-18 of

Chamundeshwari Electricity Supply Corporation Limited, Mysore (CESC,

Mysore).

Under Section 61 & 62 of the Electricity Act 2003 and under section 27 of the

Karnataka Electricity Reforms Act 1999 read with relevant Regulations of KERC

(Tariff) Regulations including KERC (Terms and Conditions for Determination of

Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006.

AND

IN THE MATTER OF:

Chamundeshwari Electricity Supply Corporation Limited (CESC), Mysore.

AFFIDAVIT

1. I, Sri. H. R. Dinesh, aged 48 years, S/o H.M. Ramalinga Setty, Deputy

General Manager (RA-1), Corporate Office, CESC, Mysore, do solemnly

affirm and say as follows:

(a) I am dealing with Regulatory Affairs and have been duly

authorized by the Board of Directors of CESC Mysore in the 71st

meeting of Board of Directors of CESC, Mysore held on 13.11.2018

to make this Affidavit.

(b) The Statement made in Chapters 1 to 10 and the related

Annexures of APR herein now shown to me are true to the best of

my knowledge and the Statements made in Chapters 1 to 10 are

based on information I believe to be true.

(c) Solemnly affirmed at Mysore on this day 30.11.2018 that the

contents of this Affidavit are true to my knowledge, no part of it is

false and no material has been concealed there from.

Place: Mysuru on behalf of CESC, Mysore

Date:30.11.2018



ABBREVIATIONS

AAD Advance Against Depreciation

AEH All Electric Home

ABT Availability Based Tariff

A&G Administrative & General Expenses

AG Accountant General

APDRP Accelerated Power Development and Reforms Programme

ARM CELL Additional Resources Mobilization Cell

ARR Annual Revenue Requirement

APR Annual Performance Review

ATE Appellate Tribunal for Electricity

ATL Anti-Theft Law

BJ Bhagya Jyothi

BNC Billing & Collection

BPL Below Poverty Line

BRP Balance Sheet Restructuring Plan

BST Bulk Supply Tariff

CAG Comptroller & Auditor General

CAPEX Capital Expenditure

CAGR Compounded Annual Growth Rate

CCS Consumer Care Society

CDT Commission Determined Tariff

CERC Central Electricity Regulatory Commission

CE Chief Engineer

CEA Central Electricity Authority

CESC

Mysore

Chamundeshwari Electricity Supply Corporation Limited,

Mysore

CFO Chief Financial Officer

CGS Central Generating Stations

Ckm Circuit Kilometer

CMD Chairman & Managing Director

CPI Consumer Price Index

CWIP Capital Works in Progress

Commission Karnataka Electricity Regulatory Commission

CoS Cost of Service

Cr. Crore

DA Dearness Allowance

DC Direct Connection

DC LINES Double Circuit Lines

DCB Demand Collection & Balance

DCU Data Concentrated Unit

DDG Decentralised Distributed Generation


DDUGJY Deen Dayal Upadhyaya Grameena Jyothi Yojana

DG PLANT Diesel Generating Plant

DM Distribution Margin

DPR Detailed Project Report

DTC Distribution Transformer Centre

EA Electricity Act

EC Energy Charges

EHT Extra High Tension

EHV Extra High Voltage

EOU Export Oriented Units

ERC Expected Revenue From Charges

ES&D CODE Electricity Supply & Distribution Code

ESCOMs Electricity Supply Companies

ESSAR Electricity Supply Annual Acounting Rules

E&I Extension and Improvement

FA Financial Adviser

FAC Fuel Adjustment Charges

FC Fixed Charges

FDP Financial & Distribution Privatisation

FDSC Foreign Debt Service Charges

FEC Fuel Escalation Charges

FKCCI Federation of Karnataka chamber of Commerce and Industry

FoR Forum of Regulators

FR Feasibility Report

FRP Financial Restructuring Plan

FY Financial Year

FEV Foreign Exchange Variation

FOCA Fuel and Other Cost Adjustment

GFA Gross Fixed Assets

GIS Geographical Information System

GoI Government of India

GoK Government of Karnataka

GRIDCO Grid Corporation

GVP Grama Vidhyuth Prathinidhi

HES Head End System

HP Horse Power

Hrs. Hours

HRIS Human Resources Information System

HT High Tension

HV High Voltage

HVDS High Voltage Distribution System

Hz Hertz


ICAI Institute of Chartered Accountants of India

IDC Interest During Construction

IP SETS Irrigation Pump Sets

IPPs Independent Power Projects/ Producers

IVRS Interactive Voice Responsive System

IT Income tax

IW Industrial Worker

KASSIA Karnataka Small Scale Industries Association

KEB Karnataka Electricity Board

KER Act Karnataka Electricity Reform Act

KERC Karnataka Electricity Regulatory Commission

KJ Kutira Jyothi

Km Kilometer

KPCL Karnataka Power Corporation Limited

KPTCL Karnataka Power Transmission Corporation Limited

KV Kilo Volt

KVA Kilo Volt Ampere

KW Kilo Watt

KWH Kilo Watt Hour

LDC Load Despatch Centre

LT Low Tension

LTP Kit Low Tension Protection Kit

MAPS Madras Atomic Power Station

MAT Minimum Alternate Tax

MCA Mix Change Adjustment

MD Managing Director

MDM Meter Data Management

MDGS Millennium Development Goals

MFA Miscellaneous First Appeal

MGHE

Station Mahatma Gandhi Hydro Electric Station

MIS Management Information System

MMS Mobile Messaging Service

MNR Meter Not Recording

MOP Ministry of Power

MU Million Units

MUSS Master Unit Sub Station

MVA Mega Volt Ampere

MVAr Mega Volt Ampere Reactive

MW Mega Watt

MYT Multi Year Tariff

MYTR Multi Year Tariff regulations


NCP Non Coincident Peak

NFA Net Fixed Assets

NLC Neyveli Lignite Corporation

NTP National Tariff Policy

NTPC National Thermal Power Corporation

O&M Operation & Maintenance

OYTS Own Your Transformer Scheme

PCKL Power Corporation of Karnataka Ltd

PF Provident Fund

PFC Power Finance Corporation Limited

PGCIL Power Grid Corporation Of India Limited

P&L Profit and loss Account

PLF Plant Load Factor

PLR Prime Lending Rate.

POCA Power Purchase & Other Cost Adjustment

PPA Power Purchase Agreement

PRDC Power Research and Development Consultants

REL Reliance Energy Limited

R & M Repairs and Maintenance

ROE Return on Equity

ROR Rate of Return

ROW Right of Way

RPO Renewable Purchase Obligation

SBI State Bank of India

SCADA Supervisory Control and Data Acquisition System

SERCs State Electricity Regulatory Commissions

SLDC State Load Despatch Centre

SRLDC Southern Regional Load Despatch Centre

STU State Transmission Utility

TAC Technical Advisory Committee

TCC Total Contracted Capacity

T&D Transmission & Distribution

TCs Transformer Centres

TMU Transformer Monitoring Unit

TR Transmission Rate

UAT User Acceptance Testing

VVNL Visvesvaraya Vidyuth Nigama Limited

WPI Wholesale Price Index

WC Working Capital


Table of contents 1. Statutory Adherence ............................................................................................ 1

2. CESC Mysore in brief ............................................................................................ 1

PART-A

3. Directives of the Commission ............................................................................... 3

3.1 Directive on conducting Consumers’ Interaction Meetings in the O & M sub-

divisions for redressal of consumer complaints: 3

3.2 Directive on preparation of energy bills on monthly basis by considering 15

minute’s time block period in respect of EHT/HT consumers importing

power through power exchange under Open Access. 9

3.3 Directive on Energy Conservation: 12

3.4 Directive on implementation of Standards of Performance (SoP) 14

3.5 Directive on use of safety gear by linemen 16

3.6 Directive on providing Timer Switches to Street lights by the ESCOMs 17

3.7 Directive on Load shedding 19

3.8 Directive on Establishing a 24x7 Fully Equipped Centralized Consumer Service

Center for Redressal of Consumer Complaints 21

3.9 Directive on Energy Audit 23

3.10 Directive on Implementation of HVDS 26

3.11 Directive on Nirantara Jyothi - Feeder Separation 27

3.12 Directive on Demand Side Management in Agriculture 31

3.13 Directive on Lifeline Supply to Un-Electrified Households 31

3.14 Directive on Implementation of Financial Management Framework: 33

3.15 Directive on Prevention of Electrical Accidents 34

4. Annual Performance Review for FY-18 ............................................................ 38

4.1 Operating Performance of the year FY-18 38

4.2 Financial performance of the Company for FY-18 44

4.3 Capital Expenditure for FY 18: 47

5. Power procurement details ................................................................................ 51


5.1 Introduction 51

5.2 Power Procurement for FY-18: 53

5.3 Renewable Purchase Obligation of CESC, Mysore for FY 18: 53

6. Common issues pertaining to wires & supply business ........................................ 55

6.1 Capital structure to meet the investment plan 55

6.2 Apportionment of cost and assets – Methodology 55

7. 65

7.1 O&M expenses 65

7.2 Depreciation 67

7.3 Other Debits 68

7.4 Interest & Finance Charges including interest on WC 68

7.5 Net prior period credits / charges 69

7.6 Expenditure summary 70

7.7 Taxes on Income 70

7.8 Non-tariff income, income from other business 70

7.9 Distribution wires business ARR-year-wise 70

8. ARR FOR SUPPLY BUSINESS ................................................................................ 72

8.1 Power purchase 72

8.2 O&M expenses 72

8.3 Depreciation 75

8.4 Other debits 75

8.5 Interest & Finance Charges including interest on WC 75

8.6 Net prior period credits / charges 76

8.7 Expenditure summary 76

8.8 Taxes on Income 76

8.9 Non-tariff income, income from other business 77

8.10 Retail supply business ARR-year-wise 77

9. Combined ARR ................................................................................................... 78

PART-B



Annual Performance Review of CESC Mysore for FY-18



ARR FILING FORMATS

No. Item

Distribution

Form

Number

1. Revenue Requirement & Profit and Loss Account A1

2. Balance Sheet A2

3. Cash flow Statement A3

4. Aggregate Revenue Requirement A4

5. Capital Base A5

6. Cost of power purchase D1

7. Revenue from sale of power D2

8. Revenue from subsidies and grants D3

9. Non-tariff income D4

10. Repairs and maintenance cost D5

11. Employee cost D6

12. Employee costs – Additional Information D6A

13. Administration and General charges D7

14. Depreciation D8

15. Loans and debentures and interest charges D9

16. Sale and leaseback assets D9A

17. Details of expenses capitalized D10

18. Other debits D11

19. Extraordinary items D12

20. Net prior period credits / (charges) D13

21. Contributions, Grants and subsidies towards cost of

capital assets D14

22. Gross fixed assets D15

23. Net fixed assets D16

24. Work in progress (capital expenditure) D17

25. Receivables against Sale of Power (DCB) D18

26. Tariff category wise DCB D18A



Page 1

In accordance with the Karnataka Electricity Regulatory Commission

(Terms and Conditions for Determination of Tariff for Distribution and

Retail Sale of Electricity) Regulation 2006, under clause 2.8, this

application for Annual Performance Review for the year FY18 is to be

filed before the Honorable Commission. The contents of this

application are in accordance with the guide lines mentioned in the

aforementioned KERC Regulations.

The Annual Accounts for FY-18 has been drawn up in accordance

with the Companies Act 2013 duly complying with the applicable

accounting standards issued by the Institute of Charted Accounts.

The decimal part of the figures appearing in the tables may differ

from the actual statements, as the same is restricted to 2 decimal

points in the formats.

A Bird’s eye view;

Chamundeshwari Electricity Supply

Corporation Limited, Mysore, shortly

abbreviated as “CESC Mysore” with its

headquarters at Mysore City is a Corporation

incorporated under Company’s Act – 1956 Vide

G.O. No. EN 98 PSR 2004 Bangalore dated 19th

August 2004, duly bifurcating Mangalore

Electricity supply Company (MESCOM),

covering the Districts in the State of Karnataka

namely Mysore, Mandya, Chamarajanagar

and Hassan.

Subsequently the District of Kodagu was

included in the jurisdiction of CESC Mysore vide

G.O.No. EN 95 PSR 2005 dated 29th March 2006.

W.e.f 1st April 2006. The Share capital of the Corporation is fully

owned by Government of Karnataka (GoK) and its

Board of Directors are nominated by Government

of Karnataka.

By virtue of transfer scheme rules made under Karnataka Electricity

Reforms Act 1999, Distribution System of 33 kV and below along with specified

CHASSAN

MANDYA

KODAGU MYS

ORE CH NAGAR


Page 2

lines, posts and personnel have been transferred to CESC Mysore from

MESCOM. CESC Mysore commenced its functioning as Electricity Distribution

Corporation w.e.f 01.04.2005.

The Company comprises of 61 O&M sub-divisions. 17 O&M divisions, 4

O&M circles and one O&M Zone.

Key Profile of the Company.

Consumers Profile-as on 31-03-2018

Tariff LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT Total

Consumers 495724 1830986 236690 367033 40315 48435 38535 2104 3059822

Percentage 16.20% 59.84% 7.74% 12.00% 1.32% 1.58% 1.26% 0.07% 100.00%

Sales in MU 121.83 973.93 294.15 2560.75 140.6 348.03 16.08 1342.74 5798.11

Percentage 2.10% 16.80% 5.07% 44.17% 2.42% 6.00% 0.28% 23.16% 100.00%

Revenue in

crores 83.73 520.43 269.83 1385.05 107.4 223.06 25.98 965.38 3580.86

Percentage 2.34% 14.53% 7.54% 38.68% 2.99% 6.23% 0.73% 26.96% 100%

Sl. No Particulars As on 31-03-18

1. Area in Sq. kms. 27,772 .82

2. Number of Districts. 5

3. Total population. 81,55,369 (2011 Census)

4. Zone 1(Total CESC Mysore)

5.

Number of sub-stations (220,

110 & 66 kV) (All maintained

by KPTCL except 5 nos. of 33

kV stations)

220 kV- 13 Nos

110 kV- 8 Nos

66 kV -194 Nos

33 kV- 5 Nos

Total Stations- 220 Nos

6. Number of DTCs 116334

7. Fixed Assets Rs.3768.83 Crs.

8. Length of HT lines 54768 kms

9. Length of LT lines 83313 kms.

10. HT / LT ratio 1:1.52

11. Total employees strength:

A Sanctioned. 10442

B Working. 6920


Page 3

The Commission had issued the following directives for compliance by

CESC Mysore in its Tariff Order 2018 issued on 14.05.2018. Compliance of these

directives by CESC Mysore is discussed as below.

3.1 Directive on conducting Consumers’ Interaction

Meetings in the O & M sub-divisions for redressal of

consumer complaints:

The Commission had directed that the CESC shall ensure that Consumer

Interaction Meetings chaired by the Superintending Engineers, are conducted

in each O&M sub-division according to a pre-published schedule, at least

once in every three months. Further, the consumers shall be invited to such

meetings in advance through emails, letters, notices on CESC’s website, local

newspapers etc., to facilitate participation of maximum number of consumers

in such meetings. The CESC should ensure that the proceedings of such

meetings are recorded and uploaded on its website, for the information of

consumers. Compliance in this regard shall be reported once in three months

to the Commission, indicating the date, the number of consumers attending

such meetings and the status of redressal of their complaints.

If the CESC fails to ensure the conduct of the Consumer Interaction

Meetings as directed, the Commission would consider imposing a penalty of

upto Rs one lakh per O&M sub-division per quarter for each instance of non-

compliance, and also direct that such penalty shall be recovered from the

concerned Superintending Engineer who fails to conduct such meetings.

Commission’s Views:

The Commission notes that the CESC has not covered all the subdivisions

while conducting consumer interaction meetings due to drafting of the

concerned SEs to attend Dasara related lighting works and other important

meetings. The Commission is of the view that the CESC should accord top

priority to address the grievances of the consumers by conducting consumers’

interaction meetings regularly, as directed.

Further, in the KPTCL and ESCOMs’ Review Meeting held on 25.10.2017,

the Commission had directed the ESCOMs to conduct the consumer

interaction meetings once in a quarter in the subdivisions chaired by either the

Superintending Engineer or the Executive Engineer in order to effectively

redress the consumer grievances. Given this direction, if the consumer

interaction meetings are not held in the subdivisions or if such meetings are

held without the participation of concerned SE or EE, then it will be construed


Page 4

that the ESCOMs are not serious in complying with the directives issued by the

Commission.

The Commission reiterates its directive to the CESC to conduct

consumer interaction meetings chaired by either the jurisdictional SE or

jurisdictional EE once in a quarter, to redress the consumer grievances

relating to supply of electricity and submit compliance thereon to the

Commission regularly.

Compliance by the CESC:

The CESC,Mysore is conducting Consumer Interaction Meetings chaired

by the Superintending Engineers, in each O&M sub-division according to pre-

published schedule, once in a quarter. The schedule has already been

published on the CESC’s website www.cescmysore.org and the consumers

are being invited to such meetings in advance through notices on the CESC’s

website, local newspapers etc., to facilitate participation of maximum number

of consumers in such meetings.

The proceedings of such meetings are also being recorded and

uploaded on the CESC’s website, for the information of consumers.

Details in this regard for the first quarter and second quarter of FY19 has

been reported to the Commission vide letters No.

CESC/GM(Comml)/DGM(RA1)/18-19/9306 dated: 10.08.2018 and No. CESC/

GM(Comml)/ DGM(RA1)/ AGM(AR4)/ 1/ 2018-19/15672 dated: 20.11.2018.

The Details of Consumers’ Interaction Meetings in the O & M sub-

divisions for redressal of consumer complaints conducted in CESC Mysore

Jurisdiction for the 1st and 2nd quarter of FY18 is detailed below;

Consumers’ Interaction Meetings in the O & M sub-divisions for the first

Quarter of FY-19 details:

DIVISIONS SUBDIVISIONS MEETING

HELD DATE

OPENING

BALANCE (NO.

OF

COMPLAINTS)

NO OF

COMPLAINTS

RECEIVED

NO OR

COMPLAINT

S RESOLVED

BALANCE

TO BE

ATTENDED

NO OF

CONSUME

RS

ATTENDED

N R

Mohalla

Central

Zone 26.05.18 3 1 3 1 1

Chamundi

puram 26.05.18 0 8 4 4 6

N R Mohalla 25.05.18 4 1 5 0 1

Jyothi

nagara 25.05.18 4 6 5 5 4

Varuna 29.05.18 0 5 1 4 9

N R Mohalla Total 11 21 18 14 21

V V

Mohalla

Kuvempu

nagara 19.05.18 0 1 1 0 5

R K Nagara 19.05.18 6 8 4 10 3

http://www.cescmysore.org/


Page 5


HELD DATE

OPENING

BALANCE (NO.

OF

COMPLAINTS)

NO OF

COMPLAINTS

RECEIVED

NO OR

COMPLAINT

S RESOLVED

BALANCE

TO BE

ATTENDED

NO OF

CONSUME

RS

ATTENDED

V V Mohalla 17.05.18 1 3 4 0 2

Hootagally 17.05.18 0 3 3 0 1

V V Mohalla Total 7 15 12 10 11

Nanjangud

Nanjangud

Urban 30.06.18 17 9 14 12 75

Nanjangud

Rural 30.06.18 8 4 8 4 75

T Narasipura 20.06.18 6 26 0 32 150

Bannur 20.06.18 14 18 11 21 54

Nanjangud Total 45 57 33 69 354

Hunsur

Hunsur 06.06.18 7 16 4 19 25

Periyapatna 04.06.18 0 18 4 14 30

K R Nagara 13.06.18 7 6 8 5 25

H D Kote 27.06.18 38 13 29 22 40

Bilikere 06.06.18 0 10 0 10 10

Sargur 27.06.18 11 9 2 18 14

Bettada

pura 04.06.18 13 10 11 12 7

Saligrama 13.06.18 7 3 2 8 3

Hunsur Total 83 85 60 108 154

Mysore Circle Total 146 178 123 201 540

Chamaraja

nagara

Chamaraja

nagara 21.5.18 0 3 0 3 18

Santhemara

halli 23.6.18 8 4 8 4 26

Haradana

halli 21.5.18 5 5 6 4 20

Gundlu

pete 30.5.18 5 1 5 1 30

Begur 30.5.18 0 2 0 2 20

Chamarajanagara Total 18 15 19 14 114

Kollegala

Kollegala 26.6.18 7 9 7 9 15

Hanur 26.6.18 39 25 39 25 50

Yalandur 23.06.18 13 7 13 7 20

Kollegala Total 59 41 59 41 85

Madikeri

Madikeri 25.5.18 4 4 4 4 15

Gonikoppal 12.6.18 32 17 32 17 60

Virajpete 12.6.18 4 17 4 17 50

Kushal

nagara 7.6.18 16 9 16 9 35

Somavara

pete 7.6.18 31 4 31 4 30

Madlkeri Total 87 51 87 51 190

Chamarajangara and Kodagu Circle

Total 164 107 165 106 389


Page 6


HELD DATE

OPENING

BALANCE (NO.

OF

COMPLAINTS)

NO OF

COMPLAINTS

RECEIVED

NO OR

COMPLAINT

S RESOLVED

BALANCE

TO BE

ATTENDED

NO OF

CONSUME

RS

ATTENDED

Mandya

CSD

Mandya 25.04.18 0 1 1 0 5

Kothathi 23.04.18 0 4 4 0 6

Keragudu 27.04.18 0 4 4 0 4

Mandya Total 0 9 9 0 15

Maddur

Maddur 1 02.06.18 5 18 20 3 18

Maddur 2 02.06.18 4 12 12 4 12

Malavalli I 22.05.18 6 10 13 3 10

Malavalli2 25.05.18 2 3 5 0 3

Maddur Total 17 43 50 10 43

Pandavapu

ra

Pandava

pura 5.6.18 11 11 8 14 11

S R Patna 12.06.18 3 8 4 7 8

Pandavapura Total 14 19 12 21 19

K R Pete K R Pete 1 Not

conducte

d

21 21

K.R.Pete 2 5 5

K R Pete Total 26 0 0 26 0

Nagamang

ala

Nagamang

ala 22.06.18 38 27 42 23 41

Bellur 29.06.18 37 4 37 4 9

Nagamangala Total 75 31 79 27 50

Mandya Circle Total 132 102 150 84 127

Hassan

USD Hassan 19.05.18 1 1 1 1 1

Dudda 17.05.18 3 2 2 3 10

KIADB

Hassan 17.05.18 1 0 0 1 0

Hassan Total 5 3 3 5 11

Sokaleshpur

a

Sakalesh

pura 28.05.18 3 2 2 3 8

Alur 23.05.18 9 7 13 3 15

Belur 28.05.18 12 11 16 7 20

Sakaleshpura Total 24 20 31 13 43

Channraya

patna

C R Patna 31.05.18 2 1 1 2 6

Nuggehalli 31.05.18 13 3 14 2 10

Channrayapatna Total 15 4 15 4 16

Holenaraslp

ura

H N Pura 18.06.18 6 6 7 5 10

Arakalagud 27.06.18 1 2 2 1 8

Ramanalhp

ura 27.06.18 25 17 35 7 25

Hangara

hally 18.06.18 3 2 1 4 8

Holenaraslpura Total 35 27 45 17 51

Arasikere Arasikere 04.06.18 3 5 4 4 15


Page 7


HELD DATE

OPENING

BALANCE (NO.

OF

COMPLAINTS)

NO OF

COMPLAINTS

RECEIVED

NO OR

COMPLAINT

S RESOLVED

BALANCE

TO BE

ATTENDED

NO OF

CONSUME

RS

ATTENDED

Banavara 20.06.18 3 2 2 3 20

Gandasl 20.06.18 6 2 4 4 10

Araslkere Total 12 9 10 11 45

Hassan Circle Total 91 63 104 50 166

CESC Grand Total 533 450 542 441 1222

Consumers’ Interaction Meetings in the O & M sub-divisions for the

Second Quarter of FY-19 details:

DIVISION SUB-DIVISION DATE

NO OF

COMPLAINTS

RECEIVED

NO OF

COMPLAINTS

RESOLVED

BALANCE TO

BE ATTENDED

NO. OF

CONSUMERS

ATTENDED

DIVISION

N R

Mohalla

Central

Zone 28.09.2018 1 1 2 0 2

Chamundi

puram

28.09.2018 4 5 5 4 7

N R

Mohalla 27.09.2018 0 4 0 4 4

Jyothinag

ara 27.09.2018 5 6 7 4 3

Varuna 28.09.2018 4 0 4 0 0

N R Mohalla Total 14 16 18 12 16

V V

Mohalla

Kuvempun

agara 12.07.2018 0 1 1 0 5

R K

Nagara 12.07.2018 10 6 10 6 2

V V

Mohalla 07.07.2018 0 2 1 1 2

Hootagally 07.07.2018 0 1 1 0 1

V V Mohalla Total 10 10 13 7 10

Nanjang

ud

Nanjangu

d Urban 26.09.2018 12 7 16 3 50

Nanjangu

d Rural 26.09.2018 4 3 6 1 50

T

Narasipura 06.10.2018 32 8 31 9 15

Bannur 06.10.2018 21 12 19 14 42

Nanjangud Total 69 30 72 27 157

Hunsur

Hunsur 29.09.2018 19 26 19 26 35

Periyapatn

a 04.10.2018 14 17 6 25 30

K R

Nagara 03.10.2018 5 2 5 2 18

H D Kote 01.10.2018 22 19 21 20 35

Bitikere 29.09.2018 10 3 10 3 10

Sargur 01.10.2018 18 11 20 9 11

Bettadapu

ra 04.10.2018 12 10 8 14 35


Page 8


NO OF

COMPLAINTS

RECEIVED

NO OF

COMPLAINTS

RESOLVED

BALANCE TO

BE ATTENDED

NO. OF

CONSUMERS

ATTENDED

DIVISION

Saligrama 03.10.2018 8 4 4 8 3

Hunsur Total 108 92 93 107 177

Mysore Circle Total 201 148 196 153 360

Chamar

ajanaga

ra

Chamaraj

anagara 14.08.2018 3 1 3 1 10

Santhemar

ahalli 26.09.2018 4 4 3 5 20

Haradana

halli 14.08.2018 4 2 3 3 12

Gundlupet

e 28.08.2018 1 4 1 4 15

Begur 28.08.2018 2 1 2 1 10

Chamarajanagara Total 14 12 12 14 67

Kollegal

a

Kollegala 25..09.2018 9 10 9 10 20

Hanur 25.09.2018 25 16 15 26 85

Yalandur 26..09.2018 7 6 7 6 30

Kollegala Total 41 32 31 42 135

Madikeri

Madikeri 9.08.2018 4 6 2 8 20

Gonikopp

al 4.09.18 17

Not conducted due to

natural calamity in

MADIKERI

17 0

Virajpete 4.09.18 17 17 0

Kushalnag

ara 21.08.18 9 9 0

Somavara

pete 21.08.18 4 4 0

Madlkeri Total 51 6 2 55 20

Chamarajangara and Kodagu

Circle Total 106 50 45 111 222

Mandya

CSD

Mandya 27.07.18 0 2 2 0 3

Kothathi 27.07.18 0 10 10 0 12

Keragudu 27.07.18 0 1 1 0 3

Mandya Total 0 13 13 0 18

Maddur

Maddur 1 30.07.18 3 16 9 10 22

Maddur 2 30.07.18 4 18 15 7 28

Malavalli I 10.08.18 3 10 5 8 20

Malavalli2 10.08.18 0 1 0 1 6

Maddur Total 10 45 29 26 76

Pandav

apura

Pandavap

ura 05.09.18 14 10 10 14 10

S R Patna 24.08.18 7 1 4 4 1

Pandavapura Total 21 11 14 18 11

K R Pete K R Pete 1

29.09.2018 21

10 0 36 21 K.R.Pete 2 5

K R Pete Total 26 10 0 36 21

Nagam

angala

Nagaman

gala 18.09.18 23 11 19 15 8


Page 9


NO OF

COMPLAINTS

RECEIVED

NO OF

COMPLAINTS

RESOLVED

BALANCE TO

BE ATTENDED

NO. OF

CONSUMERS

ATTENDED

DIVISION

Bellur 27.09.18 4 6 6 4 10

Nagamangala Total 27 17 25 19 18

Mandya Circle Total 84 96 81 99 144

Hassan

USD

Hassan 30.08.18 1 1 2 0 1

Dudda 12.07.18 3 1 2 2 5

KIADB

Hassan 12.07.18 1 1 1 1 4

Hassan Total 5 3 5 3 10

Sokalesh

pura

Sakaleshp

ura 29.08.18 3 3 3 3 10

Alur 16.07.18 3 10 10 3 20

Belur 29.08.18 7 3 6 4 15

Sakaleshpura Total 13 16 19 10 45

Channra

yapatna

C R Patna 22.09.18 2 6 5 3 15

Nuggehalli 22.09.18 2 7 7 2 10

Channrayapatna Total 4 13 12 5 25

Holenar

aslpura

H N Pura 29.09.18 5 0 3 2 5

Arakalagu

d 28.09.18 1 2 2 1 6

Ramanalh

pura 28.09.18 7 5 9 3 12

Hangarah

ally 29.09.18 4 1 2 3 5

Holenaraslpura Total 17 8 16 9 28

Arasiker

e

Arasikere 07.09.18 4 2 4 2 10

Banavara 16.08.18 3 1 2 2 15

Gandasl 16.08.18 4 4 5 3 10

Araslkere Total 11 7 11 7 35

Hassan Circle Total 50 47 63 34 143

CESC Grand Total 441 341 385 397 869

3.2 Directive on preparation of energy bills on monthly basis

by considering 15 minute’s time block period in respect

of EHT/HT consumers importing power through power

exchange under Open Access.

The Commission had directed the CESC to ensure preparation of energy

bills on monthly basis by considering the 15 minute’s time block period in

respect of EHT/HT consumers importing power through power exchange

under Open Access. The CESC shall implement the directive forthwith and

the compliance regarding the same shall be submitted monthly from May,

2017 onwards, to the Commission, regularly.


Page 10


The Commission notes that the CESC has complied with the directive by

initiating preparation of energy bills on monthly basis considering 15 minute’s

time block in respect of EHT/HT consumers importing power through power

exchange under Open Access from November 2016 onwards.

It is seen that due to introduction of 15 minute’s billing has in fact

resulted in correct billing of energy being utilized by the open access

consumers otherwise a significant quantum of energy would have been

forfeited for the ESCOMs indicating the stand taken by the Commission in

directing the ESCOMs to prepare monthly bills considering 15 minute’s billing to

prevent revenue loss to CESC by consumers who took advantage of its laxity in

enforcing correct billing. Therefore, the CESC is required to adhere to the

directive and submit compliance regarding month-wise details of number of

open access consumers, open access units scheduled/consumed and illegally

or inadvertently banked energy if any regularly to the Commission.

The Commission reiterates its directive that the CESC shall continue to bill the

EHT/HT consumers purchasing power through power exchanges under open

access and submit quarterly compliance thereon regularly to the Commission.


CESC Mysore has continued Open Access Consumers billing based on

15 minute block period in respect of EHT/ HT consumers importing power

through power exchange under Open Access. The compliance regarding the

same is being submitted to the Commission regularly.

The month-wise open access consumers, open access units

scheduled/consumed and illegally or inadvertently banked energy details for

FY-18 are furnished below;

SL. NO

FY-18

TOTAL NO. OF

CONSUMERS

ACTUAL CONSUMPTION IN

MU

OPEN ACCESS ENERGY SCHEDUL

ED IN MUS

ACTUAL OPEN

ACCESS CONSUM

PTION MU

ILLEGALLY BANKED

ENERGY IN MU

WHEELED ENERGY IN

MU

CESC UNITS TO BE BILLED

IN MUS

ENERGY CHARGES

IN CRORES

NET BILL AMOUNT

IN CRORES.

1 Apr-17 16 38.57 22.67 21.76 0.91 4.93 11.88 0.62 14.39

2 May-17 16 37.68 22.85 21.81 1.04 8.74 7.31 4.94 11.00

3 Jun-17 16 37.42 23.07 22.33 0.75 10.42 4.67 3.15 9.10

4 Jul-17 16 40.33 25.50 25.03 0.47 9.98 5.33 3.59 10.28

5 Aug-17 16 41.05 21.52 21.22 0.30 12.38 7.46 5.04 11.28

6 Sep-17 16 34.42 12.62 12.03 0.59 11.05 11.34 7.68 12.16


Page 11

SL. NO

FY-18

TOTAL NO. OF

CONSUMERS

ACTUAL CONSUMPTION IN

MU

OPEN ACCESS ENERGY SCHEDUL

ED IN MUS

ACTUAL OPEN

ACCESS CONSUM

PTION MU

ILLEGALLY BANKED

ENERGY IN MU

WHEELED ENERGY IN

MU


IN MUS

ENERGY CHARGES

IN CRORES

NET BILL AMOUNT

IN CRORES.

7 Oct-17 16 34.63 11.84 11.68 0.16 11.37 11.62 7.87 12.28

8 Nov-17 17 36.30 19.33 18.99 0.35 8.05 9.29 8.37 14.83

9 Dec-17 17 36.58 20.72 20.39 0.33 8.85 7.33 6.50 13.51

10 Jan-18 17 45.42 28.38 27.62 0.76 8.56 9.24 6.25 14.02

11 Feb-18 17 41.85 25.80 25.18 0.62 6.96 9.72 6.58 13.95

12 Mar-18 17 45.32 16.63 16.02 0.60 10.78 18.51 12.56 19.35

Total 469.56 250.92 244.04 6.87 112.05 113.70 73.14 156.16

The month-wise open access consumers, open access energy

scheduled/consumed and illegally or inadvertently banked energy details for

FY-19 upto Sep-18 are furnished below;

SL. NO

FY-18 TOTAL NO.

OF CONSUMERS

ACTUAL CONSUMPTION

IN MU

OPEN ACCESS

UNIT SCHEDULED

IN MUS

ACTUAL OPEN

ACCESS MU

ILLEGALLY BANKED ENERGY IN MU

WHEELED ENERGY IN MU


IN MUS

ENERGY CHARGES

IN CRORES

NET BILL AMOUNT

IN CRORES.

1 Apr-18 18 44.08 17.31 16.90 0.41 5.62 21.55 15.04 22.08

2 May-18 18 45.74 13.36 12.50 0.86 5.38 27.87 19.46 25.42

3 Jun-18 18 49.25 21.23 20.93 0.30 10.47 17.84 12.45 57.24

4 Jul-18 18 49.22 19.73 19.20 0.53 17.27 12.75 8.88 17.18

5 Aug-18 18 48.56 18.50 18.24 0.26 18.69 11.70 8.15 16.36

6 Sep-18 18 45.36 8.33 8.20 0.13 19.90 17.26 12.04 17.92

Total 282.21 98.47 95.98 2.48 77.32 108.98 76.02 156.20

Present open access & Wheeling energy consumers pertaining to CESC

SL.

NO. NAME OF THE FIRM RR NO.S

CONTRACT

DEMAND TARIFF

VOLTAGE

CLASS(IN

KV)

OPEN

ACCESS WHEELING

1 M/s Nestle India Pvt Ltd. EHTR-5 8,000 HT-2(a) 66 Yes Yes

2 M/s Automotive Axels

Limited HT-83 3,500 HT-2(a) 66 Yes No

3 M/s J.K.Tyres & Industries

Ltd. HT-57 9,500 HT-2(a) 66 Yes Yes

4 M/s J.K.Tyres & Industries

Ltd. HT-138 9,000 HT-2(a) 66 Yes Yes

5 M/s Khayathi Steels

Industries EHTR-2 19,000 HT-2(a) 66 Yes Yes

6 M/s AT & S India Pvt Ltd. EHTR-4 9,000 HT-2(a) 66 Yes No

7 M/s Reid & Taylor(India)

Ltd. EHTR-3 6,000 HT-2(a) 66 Yes No

8 M/s Jubliant Life Science

Limited NHT-32 5,000 HT-2(a) 33 Yes No


Page 12

SL.

NO. NAME OF THE FIRM RR NO.S

CONTRACT

DEMAND TARIFF

VOLTAGE

CLASS(IN

KV)

OPEN

ACCESS WHEELING

9 TVS Motor Company NREHT-1 5,000 HT-2(a) 66 Yes Yes

10 M/s Balaji Malts Pvt. Ltd MHT 77 2,500 HT-2(a) 11 Yes Yes

11 M/s Siderforgerossi India Pvt.

Ltd VEHT-275 6,000 HT-2(a) 66 Yes No

12 M/s New Minerva Mill HR2HT-150 4,000 HT-2(a) 66 Yes No

13 M/s Rishi FIBC solutions Pvt

Ltd HTR 119 1,500 HT-2(a) 11 Yes No

14 M/s GRS Engineering Pvt.

Ltd VVHT-104 1,475 HT-2(a) 11 Yes Yes

15 M/s Triton Valves Limited BHT-2 1,500 HT-2(a) 11 Yes No

16 M/s Triveni Engineering Ltd HT-41 2,300 HT-2(a) 11 Yes No

17 M/s BNPM Limited VVEHT-278 19000 HT-2(a) 66 Yes No

18 M/s LGB Forge Limited HT-191 2,140 HT-2(a) 11 Yes No

3.3 Directive on Energy Conservation:

The Commission had directed the ESCOMs to service all the new

installations only after ensuring that the BEE ***** (Bureau of Energy Efficiency

five-star rating) rated Air Conditioners, Fans, Refrigerators, etc., are being

installed in the applicant consumers’ premises.

Similarly, the ESCOMS were directed to ensure that all new

streetlight/high mast installations including extensions made to the

existing streetlight circuits shall be serviced only with LED lamps/energy

efficient lamps like induction lamps. Further, the Commission had directed the ESCOMs to take up

programmes to educate all the existing domestic, commercial and industrial

consumers, through media and distribution of pamphlets along with monthly

bills, regarding the benefits of using five-star rated equipment certified by the

Bureau of Energy Efficiency in reduction of their monthly electricity bills and

conservation of precious energy.

Commission’s Views

It is observed from the CESC’s compliance that; it has issued directions

to all its officers to ensure that BEE 5-star rated energy efficient appliances are

used while servicing of the consumer installations. It is not known whether such

directions issued have fructified in ensuring service to all new installations only

with the BEE 5-star rated Air Conditioners, Fans, Refrigerators, etc., in the

applicant consumers’ premises. Therefore, the CESC is directed to focus on

effective implementation of this directive by reviewing periodically the

progress/status of implementation of its circular instructions by its field officers

and take corrective action wherever necessary.


Page 13

Further, the CESC shall draw up a continuous awareness programme to

educate the consumers about the benefit of using the energy efficient

appliances in their premises and ensure that use of energy efficient appliances

is increased to many fold from the current level.

The Commission reiterates that the CESC shall service all the new

installations are serviced only after ensuring that the BEE ***** (Bureau of Energy

Efficiency five-star rating) rated Air Conditioners, Fans, Refrigerators, etc., are

being installed in the applicant’s /consumers’ premises and the compliance

thereon shall be reported to the Commission once in a quarter regularly.


The CESC is constantly perusing about serving the new installations

after ensuring the use of BEE 5 star rated equipment’s. Recently a

circular has been issued to all SEE’s/EE’s in this regard vide no. CESC/

GM(T)/ DGM(DSM)/ AGM(DSM)/2018-19/cys-308 dated:30.05.2018.

Letter has been addressed to all Commissioners, City Corporation and

Chief Executive Officers, Zilla Panchayat of Mysore, Mandya,

Chamarajanagara, Kodagu and Hassan to provide timer switches and

LED lights for the streetlight installations and there by to avail the

rebate on Tariff vide Ltr no: CESC/ GM(T)/ DGM(DSM)/ AGM(DSM)/

2018-19/ cys-307 dated:30.05.2018.

Director Technical, CESC has given a speech to educate the

consumers regarding the benefits of using LED Bulbs, Tube lights ,other

5 star rated equipments and energy conservation which was

broadcasted in the AIR, Mysuru broadband on 10.06.2018 @ 8.00P.M.

Under “Hosa Belaku” Yojane around 39.77 lakh nos. of LED Bulbs,

48,000 nos. of LED Tube lights and 7,400 nos. of 5-star rated energy

efficient fans were already distributed till now. There by around

79.70MU of Energy saved /Annum in CESC.

CESC also published advertisements in daily newspapers in both

English and Kannada version on 07.07.2018 for the information of the

consumers to bring about public awareness in the use of 5 star rated

equipement to conserve energy. A copy of the advertisement

published in Times of India, Vishwavani and Kannadaprabha is

enclosed as Annexure-1.

Presently as per GoK order no. EN 119 VSC 2017 dated 07.06.2017;

CESC is procuring 1& 2 Star rated transformers only. During 2018-19 (up

to Sep-18) 1870nos. of single star/double star rated transformers of

capacity were procured.

In CESC totally 15 nos. of transformer testing centers were established

to test the transformers procured for TTK works/ Company Purchase,

transformers repaired by the repairer and are assured to the required


Page 14

quality.

The compliance regarding the same is being submitted to the


3.4 Directive on implementation of Standards of Performance

(SoP)

The Directive issued was as follows:

“The CESC is directed to strictly implement the specified Standards of

Performance while rendering services related to supply of power as per the

KERC (Licensee’s Standards of Performance) Regulations, 2004.

Further, the CESC is directed to display prominently in Kannada the

details of various critical services such as replacing the failed transformers,

attending to fuse off call / line breakdown complaints, arranging new services,

change of faulty energy meters, reconnection of power supply, etc., rendered

by it as per Schedule-1 of the KERC (Licensee’s Standards of Performance)

Regulations, 2004 and Annexure-1 of the KERC (Consumer Complaints Handling

Procedure) Regulations, 2004, on the notice boards in all the O & M sections

and O & M sub-divisions in its jurisdiction for the information of consumers as per

the following format.

NATURE OF

SERVICE

STANDARDS OF

PERFORMANCE

(INDICATIVE MINIMUM

TIME LIMIT FOR

RENDERING SERVICES)

PRIMARY

RESPONSIBILITY

CENTRES

WHERE TO

LODGE

COMPLAINT

NEXT HIGHER

AUTHORITY

AMOUNT

PAYABLE TO

AFFECTED

CONSUMER

The CESC shall implement the above directive within one month from

the date of the order and report compliance to the Commission regarding the

implementation of the directives.”


The Commission while noting the compliance furnished, reiterates that

the CESC shall continue to adhere to the specified standards of performance

in rendering various services to consumers in a time bound manner.

Further, the Commission directs the CESC to carry out effective supervision over

the functioning of field offices particularly in rendering services to the

consumers, relating to supply of electricity.

The Commission reiterates that the CESC shall continue to strictly implement the

specified SoP while rendering services related to supply of electricity as per the

KERC (Licensee’s Standards of Performance) Regulations, 2004. For this purpose,


Page 15

the SEEs and the EEs during their inspections to the sub-divisions, shall ensure

that this directive is being complied with without any let up.

The compliance in this regard shall be submitted once in a quarter to the



The CESC has already implemented the specified Standards of

Performance while rendering services related to supply of power as per the

KERC (Licensee’s Standards of Performance) Regulations, 2004. The CESC has

displayed prominently in Kannada the details of various services such as

replacing of the failed transformers, attending to fuse off call / line breakdown

complaints, arranging new services, change of faulty energy meters,

reconnection of power supply, etc., rendered as per Schedule-1 of the KERC

(Licensee’s Standards of Performance) Regulations, 2004 and Annexure-1 of

the KERC (Consumer Complaints Handling Procedure) Regulations, 2004, on

the notice boards in all the O & M sections and O & M subdivisions for the

information of consumers.

Implementation of Commission’s Directive on SoP as on Sep- 2018

SL

NO CIRCLE

NO OF

O&M SUB

DIVISIONS

EXISTING

NO OF

O&M

SECTIONS

EXISTING

NO OF O&M

SUB

DIVISIONS

WHERE THE

DETAILS

DISPLAYED

NO OF O&M

SECTIONS

WHERE THE

DETAILS

DISPLAYED

NO OF

COMPLAIN

TS

RECEIVED

FOR THE

DELAY IN

RENDERIN

G THE

SERVICE

AMOUNT

PAID TO

THE

CONSUM

ER IN RS

NOS NOS NOS NOS NOS NOS

1 Mysuru circle 21 81 21 81 0 0

2 Chamarajanagar

& Kodagu Circle 13 55 13 55 0 0

3 Mandya Circle 13 60 13 58 0 0

4 Hassan Circle 15 63 15 63 0 0

CESC Total 62 259 62 257 0 0

Note: Two new sections sanctioned in CESC, are not operating

independently.


Page 16

3.5 Directive on use of safety gear by linemen

The directive issued was as follows:

“The Commission directs the CESC to ensure that all the linemen in its

jurisdiction are provided with proper and adequate safety gear and also

ensure that the linemen use such safety gear provided while working on the

network. The CESC should sensitise the linemen about the need for adoption of

safety aspects in their work through suitably designed training and awareness

programmes. The CESC is also directed to device suitable reporting system on

the use of safety gear and mandate supervisory/higher officers to regularly

cross check the compliance by the linemen and take disciplinary action on the

concerned if violations are noticed. The CESC shall implement this directive

within one month from the date of this order and submit compliance report to

the Commission.”


The Commission notes from the compliance furnished by the CESC that

it has provided the safety gear to its linemen working on the distribution

network. However, it has not given safety gear to all of its linemen working in

Chamarajnagar–Kodagu and Mandya circles. The CESC is directed to provide

adequate safety gear to all the linemen to ensure safety to them while working

on the distribution network. Therefore, it is very important that the CESC should

continue to focus its attention on safety aspects to further reduce the electrical

accidents occurring due to shear negligence or non-adherence of safety

procedures by the field staff while working on the distribution network.

Further, the Commission notes that to bring in awareness, the CESC has

provided training to linemen working in all the divisions except in

Chamrajnagar-Kodagu division. Also, the number of training programmes

conducted in Mandya district is only two, which is totally inadequate. The

Commission is of the view that all the linemen should be given training

periodically on adherence to safety aspects to ensure that they effectively

carryout their work on the distribution system, on attaining suitable training.

The Commission reiterates that the CESC shall ensure that, all the linemen in its

jurisdiction are provided with proper and adequate safety gear and that they

use such safety gear provided to them while working on the network. The

compliance in this regard shall be submitted once in a quarter to the



Page 17

Compliance by the CESC

The CESC has provided proper and adequate safety gear to the

linemen in its jurisdiction and is also ensuring that the linemen use such

safety gear provided while working on the distribution system.

The CESC has directed the field officers to monitor the proper up keep

of the safety gear provided and keep in stock reasonable spare sets of

safety gear and also monitor the use of the same by linemen and take

disciplinary action on the concerned if violations are noticed.

The details have been furnished below:

Implementation of the Commission’s Directive on use of safety gear by

linemen as on September- 2018

NAME OF

THE CIRCLE

TOTAL NOS

LINEMEN

NO. OF LINEMEN

PROVIDED WITH

SAFETY GEAR

NO. OF

LINEMEN YET TO

PROVIDED WITH

SAFETY GEAR

LIKELY DATE

OF

PROVIDING

SAFETY GEAR

TO ALL

LINEMEN

Regular Contract Regular Contract Regular Contract Regular Contract

Mysore 1365 16 713 3 652 13 -

Ch nagar-

Kodagu 663 210 508 210 155 0

31.12.2018

Mandya 992 0 789 0 203 0

Hassan 1042 - 1042 - - -

CESC Total 4062 226 3052 213 1010 13 31.12.2018

3.6 Directive on providing Timer Switches to Street lights by

the ESCOMs

The directive issued was as follows:

“The Commission directs the CESC to install timer switches using own

funds to all the street light installations in its jurisdiction wherever the local

bodies have not provided the same and later recover the cost from them. The

CESC shall also take up periodical inspection of timer switches installed and

ensure that they are in working conditions. They shall undertake necessary

repairs / replacement work, if required and later recover the cost from local

bodies. The compliance regarding the progress of installation of timer switches

to street light installations shall be reported to the Commission within three

months of the issue of the Order.”


Page 18


The Commission observes that the progress achieved in installation of

timer switches is nil and when compared to the previous year the status is

same. The CESC needs to take concrete measures for installation of timer

switches by establishing proper coordination with the concerned local

authorities. The inaction in this regard has only resulted in wastage of electricity

by indiscriminate use of streetlights during day time.

Further, as regards providing timer switches to streetlight under AMRUTH

scheme covering 4,754 streetlight installations, it is noted that there is no real

progress in this regard. The CESC needs to pursue this with the concerned

authorities so as to take the matter forward. The progress /status in this regard

shall be reported to the Commission on a quarterly basis, regularly.

Further, it is observed that the CESC has not initiated any action to install

timer switches at its cost and later recover the cost from the concerned local

bodies, as directed by the Commission. Therefore, the CESC is directed to install

timer switches at its cost and also persuade the local bodies to install timer

switches at their cost availing funds / grants received from the Government

and other agencies for such programmes.

The Commission directs the CESC to ensure that new streetlight installations and

any extension/modification to be carried out to the existing streetlight

installations are serviced only with timer switches.


The CESC has been issued the circulars vide no:

CESC/GM(T)/DGM(DSM)/AGM(DSM)/2017-18/cys-127 dated:08.05.2017 and

CESC/GM(T)/DGM(DSM)/AGM(DSM)/2018-19/cys-248 dated:24.05.2018 for

servicing of new streetlight installation and extension/modification of existing

streetlight installations with timer switches.

Further, letter has been addressed to all Commissioners, City

Corporations and Chief Executive Officers, Zilla Panchayat of Mysore,

Mandya, Chamarajanagara, Kodagu & Hassan to provide timer switches and

LED lights for the street light installations and thereby to avail the rebate on

tariff vide ltr no. CESC/GM(T)/DGM(DSM)/AGM(DSM)/2018-19/cys-307

dated:30.05.2018. The compliance regarding the same is being submitted to

the Commission regularly.

At the end of Sep-18, the details of timer switches provided as at the

end of Sep-2018 are as follows:


Page 19

ESCOM

TOTAL NO. OF

STREET LIGHT

INSTALLATIONS

NO. OF INSTALLATIONS

PROVIDED WITH TIMER

SWITCHES

BALANCE NO. OF

INSTALLATIONS TO BE

PROVIDED WITH TIMER

SWITCHES OLD NEW up to Sep-

18

CESC 22257 834 100 21323

3.7 Directive on Load shedding

The Commission had directed that:

(1) Load shedding required for planned maintenance of transmission /

distribution networks should be notified in daily newspapers at least 24

hours in advance for the information of consumers.

(2) The ESCOMs shall on a daily basis estimate the hourly requirement of

power for each sub-station in their jurisdiction based on the seasonal

conditions and other factors affecting demand.

(3) Any likelihood of shortfall in the availability during the course of the day

should be anticipated and the quantum of load shedding should be

estimated in advance. Specific sub-stations and feeders should be

identified for load shedding for the minimum required period with due

intimation to the concerned sub-divisions and sub-stations.

(4) The likelihood of interruption in power supply with time and duration of

such interruption may be intimated to consumers through SMS and other

means.

(5) Where load shedding has to be resorted to due to unforeseen reduction

in the availability of power, or for other reasons, consumers may be

informed of the likely time of restoration of supply through SMS and other

means.

(6) Load shedding should be carried out in different sub-stations / feeders to

avoid frequent load shedding affecting the same sub-stations / feeders.

(7) The ESCOMs should review the availability of power with respect to the

projected demand for every month in the last week of the previous

month and forecast any unavoidable load shedding after consulting

other ESCOMs in the State about the possibility of inter-ESCOM load

adjustment during the month.

(8) The ESCOMs shall submit to KERC their projections of availability and

demand for power and any unavoidable load shedding for every

succeeding month in the last week of the preceding month for

approval.


Page 20

(9) The ESCOMs shall also propose specific measures for minimizing load

shedding by spot purchase of power in the power exchanges or

bridging the gap by other means.

(10) The ESCOMs shall submit to the Commission sub-station wise and feeder-

wise data on interruptions in power supply every month before the 5th of

succeeding month.

The Commission had directed that the ESCOMs shall make every effort

to minimize inconvenience to consumers strictly complying with the above

directions. The Commission had indicated to review the compliance of

directions on a monthly basis for appropriate orders.

Commission’s Views: The Commission observes that the CESC is not submitting its projections

of availability and demand for power and any unavoidable load shedding for

every succeeding month in the last week of the preceding month to the

Commission, regularly. The CESC shall henceforth, submit the same regularly to

the Commission without fail.

The Commission notes from the compliance submitted by the CESC that

it has not yet fully implemented the ‘application software’ for integration with

the SCADA data to enable providing information to the consumers through

SMS, in advance regarding the time and duration of probable interruptions.

The progress is the same as last year. The CESC shall expedite development of

necessary software and other process required to inform consumers through

SMS regarding both scheduled and un-scheduled load shedding due to

reasons such as system constraints, breakdowns of lines/equipment,

maintenance etc. This would certainly address significantly the consumers’

dissatisfaction on this issue and prevent inconvenience/disruption caused to

industrial consumers.

The Commission reiterates that, the CESC shall comply with the directive on

load shedding and submit monthly compliance reports thereon to the



1. The CESC is submitting the projection of availability and demand for

power and any unavoidable load shedding for every succeeding

month in the last week of the preceding month to the Commission.

Projection of availability and demand for power and any unavoidable

load shedding details for the months of April-18 to October-18 which

were submitted to the Commission are herewith enclosed as

Annexure-2.

2. Application software Feeder-wise Data Analysis and outage

Management developed through M/S Idea Infinity IT solutions,


Page 21

Bengaluru, has been implemented for generating load shedding

protocol in case of loss of generation/ emergency and intimate the

feeders to be shed by SLDC, to ease off loads.

3. The outage Management module is developed to send SMSs to MPs,

MLAs and VIPs.

4. MoP has developed Urjamitra mobile application to establish links

between DISCOM field staff and citizens for facilitation of outage

dissemination information to all consumers through SMS at their cost.

5. The CESC has submitted the data base for 1,692 feeders out of which

1147 are uploaded by the REC. The data for the balance feeders will

also be submitted.

6. Further,As per Gok orders the hours of power supply for Rural &IP

feeders is arranged as below:

Rural feeder: 7Hrs 3phase & 9Hrs of Single phase. IP feeder: 7Hrs of 3

phase.

7. The declared hours of Load shedding for Rural & IP feeders are 8 Hrs &

17 Hrs respectively.

3.8 Directive on Establishing a 24x7 Fully Equipped

Centralized Consumer Service Center for Redressal of

Consumer Complaints

The directive was as follows:

“The CESC is directed to put in place a 24x7 fully equipped Centralized

Consumer Service Center at its Headquarters with state of the art

facility/system for receiving consumer complaints and monitoring their redressal

so that electricity consumers in its area of supply are able to seek and obtain

timely and efficient services / redressal in the matter of their grievances. Such a

Service Center shall have adequate number of desk operators in each shift so

that consumers across the jurisdiction of the CESC are able to lodge their

complaints directly with this Centre.

Every complaint shall be received on a helpline telephone number by

the desk operator and registered with a docket number which shall be

intimated to the consumer. Thereafter, the complaints shall be transferred

online / communicated to the concerned field staff for resolving the same. The

concerned O&M / local service station staff shall visit the complainant’s

premises / fault location at the earliest to attend to the complaints and then

inform the Centralized Service Centre that the complaint is attended. In turn,

the call Centre shall call the complainant and confirm with him whether the

complaint has been attended to. The complaints shall be closed only after


Page 22

receiving consumer’s / complainant’s confirmation. Such a system should also

generate daily reports indicating the number / nature of complaints received,

complaints attended, complaints pending and reasons for not attending to the

complaints.

The CESC shall publish the details of the complaint handling procedure /

Mechanism with contact numbers in the local media periodically for the

information of the consumers. The compliance of the action taken in the

matter shall be submitted to the Commission within two months from the date

of this Order.

Further, the Commission directs the CESC to establish/strengthen 24x7

service stations, equipping them with separate vehicles and adequate line

crew, safety kits and maintenance materials at all its sub-divisions including

rural areas for effective redressal of consumer complaints”.

Commission’s Views The Commission while noting that the CESC has established the

necessary infrastructure for effective redressal of consumer complaints directs

CESC that it should continue its efforts in further improving the delivery of

consumer services especially in reducing time required for resolving consumer

complaints which on breakdowns of lines/equipment, failure of transformers

etc., which resulting in interruptions in power supply should be given prompt

and effective response. It is also imperative that necessary steps are taken to

continuously sensitize field-staff about effeciant handling of consumer

complaints apart from improving their general efficiency.

The Commission reiterates its directive to the CESC to publish the

complaint handling procedures / contact number of the Centralized

Consumer Service Centre in the local media, host it on its website and also

publish it through other modes periodically for the information of public and

ensure that all the complaints of consumers are registered only through the

Centralized Consumer Service Centre for proper monitoring of disposal of

complaints registered. The compliance in this regard shall be furnished once in

a quarter regularly, to the Commission.

Compliance by the CESC: 1. The CESC centralized customer care center works for 24X7 for Redressal

of consumer complaints.

2. At present the CCC is provided with 15 even lines with a customer care

toll free number 1912 and there is a provision which can be extendable

up to 30 lines.

3. The Web based PGRS (Public Grievance Redress system) Software is

installed successfully and working satisfactorily by enabling fast

complaint registration and redressal at customer care center.

Consumers can register their complaints


Page 23

through various social media like SMS, e-mail, facebook, CESC mobile

App and also through official registered website

www.cescmysorepgrs.com. The consumer/ General public can retrieve

their complaints history in the software.

4. Actions will be taken to integrate other social Medias like WhatsApp and

Instagram to PGRS software in order to enable consumers for registering

their complaints.

5. Wide publicity has been given regularly in Paper Notification in all

leading news papers for consumer’s information regarding helpline

number 1912 and about other modes of complaint registration like SMS

number details, online website address etc.

3.9 Directive on Energy Audit

The Commission had directed the CESC to prepare a metering plan for

energy audit to measure the energy received in each of the Interface Points

and to account for the energy sales. The Commission had also directed the

CESC to conduct energy audit and chalk out an Action Plan to reduce

distribution losses to a maximum of 15 per cent wherever it was above this level

in towns/ cities having a population of over 50,000.

The Commission had earlier directed all the ESCOMs to complete

installation of meters at the DTCs by 31st December, 2010. In this regard the

ESCOMs were required to furnish to the Commission the following information

on a monthly basis:

a) Number of DTCs existing in the Company.

b) Number of DTCs already metered.

c) Number of DTCs yet to be metered.

d) Time bound monthly programme for completion of work.


As regards energy audit of towns and cities, the Commission observes

that there is inordinate delay in tagging of consumer details with the respective

DTCs and without completion of this process; DTC-wise energy audit

conducted in respect of towns and cities is not accurate. The Commission

directs the CESC to complete the tagging issues at least in respect of towns

and cities immediately and conduct energy audit and initiate necessary

measures on the basis of energy audit results to reduce the technical losses

and improving collection efficiency in order to achieve the mandated A T & C

loss of less than 15 per cent. The CESC is directed to submit compliance

thereon regularly to the Commission.

http://www.cescmysorepgrs.com/


Page 24

The Commission further notes that the CESC despite providing meters to

30,411 DTCs, has failed to take up energy audit of all these DTCs. It is noted that

out of 30,411 metered DTCs, only around 6,800 DTCs are being audited. This

shows that the CESC is not serious in completing the tagging of consumer

installations with the respective DTCs for conducting energy audit of the same

and taking remedial measures to reduce energy losses. Further, it is observed

that there is inordinate delay in providing meters to balance 24,651 DTCs.

The action taken by the CESC so far is not satisfactory and the Commission

views with displeasure the delay in completing the tagging of consumer

installations and taking up the energy audit of all the metered DTCs.

The CESC is directed to take up energy audit of 30,411 DTCs, which are

metered and to take remedial measures for reducing energy losses in the high

loss making distribution areas. The compliance in respect of DTC-wise energy

audit conducted, with the details of analysis and the remedial action initiated

to reduce loss levels shall be regularly submitted to the Commission on a

quarterly basis.

Further, the CESC is directed to submit to the Commission, before 21st May, 2018

the consolidated energy audit report for the FY18, as per the formats prescribed

by the Commission, vide its letter No. KERC/D/137/14/91 dated 20.04.2015.


(1) The Energy Audit of all the feeders as per KERC prescribed ABCD formats

are being submitted to the Hon’ble Commission. So far Energy Audit for

996 feeders & 7992 DTCs for FY-18 have already been submitted to the

Hon’ble Commission. For FY-19, as on Jun-2018, energy audit for 856

feeders and 6491 DTCs has been submitted to the Hon’ble Commission.

(2) The distribution loss calculation for the year FY-18 for 1574 feeders is

calculated and already furnished to the Honourable Commission vide

letter No: CESC/ GM(Comml)/ DGM(RA1)/ AGM(AR4)/ 1/ 2018-19/15672

dated: 20.11.2018. The same has been enclosed as Annexure 3.

As on 30.09.2018: (1) 844 purely agricultural feeders have been commissioned. There are

55904 numbers of transformers on these feeders. Metering is not

required in respect of these transformers as the feeder consumption is

being considered for calculation of IP set consumption.

(2) 8860 numbers of water supply installations have been serviced and all

of them are in rural areas. Each of these water supply installations has

been provided with an independent distribution transformer. As such

metering is not required in respect of these transformers.

(3) 31142 nos. of DTCs have to be provided with meters. The details are

furnished below:


Page 25

EXISTING

DTCS

METERED

DTCS

DTCS WHERE METERS ARE NOT

REQUIRED

DTCS TO BE

METERED

122573 57809 64764 31142

Energy Audit of Towns under RAPDRP:-

1) Consumer tagging to Feeders and consumer tagging to Towns is

completed and the same has been made available in RAPDRP Portal.

2) Consumer to DTC tagging is under process, proper DTC wise energy

audit will be made available after the proper consumer to DTC tagging.

3) Town Wise energy audit report of RAPDRP towns for FY18 as well as for

FY19 up to August 2018 is enclosed as Annexure-4 and Annexure 4a.

In respect of rural DTCs, the consumption of exclusive agricultural

feeders is being obtained from the Sub-Stations, after completion of the works

of bifurcation of agricultural and non-agricultural feeders under the NJY

scheme. So far, as at the end of September 2018, 844 numbers of exclusive

agricultural feeders are existing in CESC Mysore.

The Metering of non-agricultural DTCs will also be taken up at the

earliest. The loss levels of distribution transformers (including those under

RAPDRP) for which Energy audit has been carried out for FY-18 as well as FY-19

upto September 2018 are as given below:

DTC ENERGY LOSS ANALYSIS FROM APRIL-17 TO March-18 (17-18)

MONTH /

YEAR

TOTAL NO.OF DTCS FOR

WHICH ENERGY AUDIT

HAS BEEN CARRIED OUT

DTC ENERGY LOSS ANALYSIS

URBAN RURAL TOTAL <5% 5-10% 10-20% 20-30% >30%

April--17 6594 1726 8320 3338 3003 1661 264 54

MAY--17 6724 1683 8407 3371 3073 1808 140 15

JUNE--17 6826 1257 8083 3351 2968 1612 145 7

JULY--17 6837 1313 8150 3274 3105 1672 97 2

AUG--17 6561 1665 8226 3363 3491 1286 85 1

SEP--17 6426 1878 8304 3431 3533 1260 79 1

OCT--17 6502 2105 8607 3461 3649 1388 102 7

NOV--17 6574 1995 8569 3427 3790 1273 71 8

DEC--17 6536 2068 8604 3604 3454 1430 109 7

JAN--18 6712 1582 8294 3010 3407 1757 97 23

FEB--18 6831 1566 8397 3220 3472 1643 59 3

MARCH--18 6392 2098 8490 3327 3473 1556 109 25


Page 26

DTC ENERGY LOSS ANALYSIS FROM APRIL-18 TO SEP-18 (18-19)

MONTH / YEAR TOTAL NO.OF DTCS FOR

WHICH ENERGY AUDITED DTC ENERGY LOSS ANALYSIS

Urban Rural Total <5% 5-10% 10-20% 20-30% >30%

April--18 6183 2160 8343 3243 3218 1704 158 20

MAY--18 6003 1982 7985 3327 3083 1493 68 14

JUNE--18 6308 2236 8544 3530 3458 1446 91 19

JULY--18 6394 2134 8528 3497 3527 1404 81 19

AUG--18 6292 2211 8503 3857 3217 1343 58 28

SEP--18 6292 2123 8415 3447 3538 1372 48 10

Action is being initiated to bring down the percentage of losses in

respect of transformers where the losses are more than 10%. The remedial

measures initiated to reduce loss levels are indicated in Annexure 5.

3.10 Directive on Implementation of HVDS

In view of the obvious benefits in the introduction of HVDS in reducing

distribution losses, the Commission had directed the CESC to implement High

Voltage Distribution System in at least one O&M division in a rural area in its

jurisdiction by utilizing the capex provision allowed in the ARR for the year.


The Commission had constituted an expert committee to look into the

other alternatives available to HVDS, in the wake of the suggestion of Sri B.S.

Hanumanthappa, a member of the Advisory Committee of the Commission

that implementation of the HVDS in the ESCOMs is not beneficial to the

distribution system. The Committee after studying the various alternatives to

HVDS, has recommended that HVDS is beneficial to the system and higher loss

reduction could be achieved if implemented at a reasonable cost by utilizing

the released materials such as conductors, poles, etc. Therefore, in view of the

Committee’s recommendations, the Commission is of the view that the HVDS

should be implemented for the agricultural feeders segregated under NJY

scheme, by following the revised guidelines issued by the Commission, only

wherever it is techno-economically viable.

However, it is noted that the CESC has taken a stand from the last year

that it would not implement HVDS in its jurisdiction contending that providing

one DTC for every three IP-sets serviced under regularization scheme is akin to


Page 27

implementation of HVDS. Therefore, as the CESC itself has not proposed any

HVDS project in its jurisdiction, the Commission directs it to not to submit any

HVDS proposals until further orders.


The CESC will abide by the directions of the Commission.

3.11 Directive on Nirantara Jyothi - Feeder Separation

The ESCOMs were directed to furnish to the Commission the programme

of implementing taluk wise 11 KV feeders segregation with the following details

a) Number of 11 KV feeders considered for segregation.

b) Month wise time schedule for completion of envisaged work.

c) Improvement achieved in supply after segregation of feeders.


The Commission observes that there has been an inordinate delay on

the part of the CESC in completion of the NJY works, across its jurisdiction which

has only resulted in non-realization of envisaged benefits set out in the DPR

when the project was initiated. As could be seen from its compliance, it is yet

to complete all the works taken up under both NJY phase 1&2. As at present

the progress achieved by the CESC is not satisfactory as it has commissioned

totally 352 feeders under both NJY phase 1&2, leaving 18 feeders still to be

completed. The CESC needs to expedite total commissioning of the NJY works

taken up in its jurisdiction.

Therefore, the CESC is hereby directed to complete and commission the

remaining 18 feeders expeditiously and thereafter carry out the analysis of

those feeders so as to ensure that the objectives set out as per the DPR are

accomplished. Further, the CESC shall ensure that any illegal tapping of NJY

feeders by the farmers for running their IP-sets should be stopped immediately.

Failure to stop this illegal activity will defeat the very purpose of feeder

segregation works undertaken at huge cost and therefore, the CESC needs to

take stern action on any such offenders. Further, the field officers/officials who

fail to curb illegal tapping shall be personally held responsible for these

irregularities.

Further, the Commission notes that the CESC has carried out the analysis

of feeders already commissioned under NJY phase 1&2. The Commission notes

that the analysis has indicated the various benefits accrued to the system in

terms of reduction in failures of distribution transformers; reduction in energy

losses; improvement in tail-end voltage; improvement in supply/reduction in

interruptions and increase in metered consumption. It is also indicated by the


Page 28

analysis that the consumers are satisfied in the wake of increased number of

hours of availability of quality power, post implementation of NJY.

Further, it is noted that the CESC has already segregated 352 feeders

under NJY phase1&2 works and consequent to this, agricultural feeders are

exclusively used to supply power to rural IP loads and the energy consumed by

the IP-sets could be more accurately measured at the 11 KV feeders at the

sub-stations after duly allowing for distribution losses in 11 KV lines, distribution

transformers and LT lines. The CESC is directed to continue to report every

month, specific consumption and the overall IP-set consumption only on the

basis of data obtained from agricultural feeders’ energy meters as per the

prescribed formats.

The Commission reiterates its directive to the CESC to continue to furnish the

details of feeder-wise IP-set consumption based on the data of energy meters

fixed to the 11 KV feeders, to the Commission, every month in respect of

agriculture feeders segregated under NJY.


NJY Phase-1:

The CESC has taken the initiatives to commission the completed feeders

on top priority and to complete and commission the feeders where the works

are in progress. An action plan was made to construct 135 feeders for

bifurcation and out of which 132 feeders have been commissioned under NJY

Phase-1 as at the end of October 2018. The Commissioning of one feeder is

pending. Action will be taken to commission this feeder. Works are in progress

in respect of 2 feeders and these feeder works will be completed before

December 2018.

Progress of NJY Phase-1 as at the end of September 2018 and Action

Plan for completing are as detailed below:

No. of

taluks

covered

Total

Feeders

Feeders Action Plan

Completed Commissioned Balance Nov-

18

Dec-

18 Total

10 135** 132 132 3* 0 2 2

Note: * out of balance 3 feeders, 01 no. feeder is taken up in DDUGJY scheme

and the feeder work is completed and commissioned on 17.10.2018. Hence

action plan is shown for balance 2 feeders.


Page 29

** As per DPR, 161 numbers of NJY feeders were proposed. Due to field

constraints, work in 26 feeders could not be taken up and the same is

proposed to be taken up in DDUGJY for which the works have already been

awarded.

NJY Phase -2:

Out of proposed 235 feeders under NJY Phase-2, works in respect of 230

feeders have been completed, out of which 230 feeders have been

commissioned as at the end of September 2018. Further, works are in progress

in 2 feeders.

Progress of NJY Phase-2 works as at the end of October 2018 and Action

Plan for completing are as detailed below:

No. of

taluks

covered

Total

Feeders

Feeders Action Plan

Completed Commissioned Balance Oct-18 Nov-18 Dec-18 Total

14 235* 230 230 2 - 1 1 2

Further, in C.R. Patna two feeders were proposed from new Shettyhalli

MUSS. The incomer 66kV line of this substation is pending and hence, the

substation has not been commissioned. As such, approval is given to drop the

two feeders in 67th Board meeting.

Further, in Gundlupet taluk, due to corridor issues approval is given to

drop the Chirukanahalli feeder in 68th Board meeting.

The CESC is taking all measures to complete and commission the feeder

works taken up under NJY scheme as per the action plan.

Further, the financial progress achieved as on October 2018 is as follows:

(Amount in Rs. crore)

Analysis of benefits of NJY M/s CPRI has been entrusted with the works of analysing the benefits to

the system post implementation of NJY scheme.

Details of work awarded to M/s CPRI is as follows:

Sl. No. Phase Project

cost Expenditure Balance Remarks

1 Phase 1 248.47 198.32 50.15

2 Phase 2 539.13 495.87 43.26 Including

variation

Total 787.60 694.19 93.41


Page 30

NJY Phase I

Sl.

No. Name of the Division

Total

NJY

feeders

Commissioned

feeders

Work

awarded

feeders

Remaining

feeder to

be

awarded

CPRI

Inspection

Report

Received

CPRI

Evaluation

Report

Received

1 Chamarajanagar 11 8 8 0 2 0

2 Pandavapura 6 6 6 0 0 6

3 K.R.Pet 17 17 16 1 9 4

4 Kollegala 22 22 22 0 2 7

5 H.N.Pura 16 16 16 0 9 7

6 Nagamangala 8 8 8 0 0 5

7 Hunsur

(Hunsur+H.D.Kote) 26 26 26 0 12 8

8 Arsikere 14 12 11 1 11 0

9 Nanjanagud (T.N Pura) 15 15 15 0 13 0

Total 135 130 128 2 58 37

NJY Phase 2

Sl.

No. Name of the Division

Total

NJY

feeders

Commissioned

feeders

Work

awarded

feeders

Remaining

feeder to

be

awarded

CPRI

Inspection

Report

CPRI

Evaluation

Report

1 Channarayapatna 40 40 40 0 20 0

2 Hassan 22 22 22 0 21 13

3 Nanjangud 22 22 22 0 20 0

4 Maddur 21 21 21 0 21 0

5 Hunsur (KR Nagar+

Periyapatna) 26 26 26 0 26 7

6 Sakleshpura

(Alur+Belur) 13 13 12 1 11 11

7 Mandya 20 20 20 0 18 0

8 Chamarajanagar

(Gundlepet) 13 12 12 0 4 3

9 Pandavapura

(S.R.Patna) 13 12 12 0 8 0

10 H.N pura

(Arakalgud) 16 16 16 0 14 7

11 Kollegala

(Yelandur) 4 4 4 0 0 0

12 Mysore 22 22 22 0 18 0

Total 232 230 229 1 181 41

At present, IP consumption is calculating based on the energy

recorded in the meters fixed to the segregated IP set feeders. Details of

Consumption of agriculture feeders has submitted vide letter no: TL/ COM/

COM/ 2018-19/14124 dated: 26.10.2018.

Sample CPRI ‘s Evaluation report is enclosed as Annexure-6.

Further, CESC has instructed all its field officers and vigilance wing to

ensure any illegal tapping of NJY feeders by the farmers for running their IP-sets

should be stopped immediately. Failure to stop this illegal activity will be

directly held responsible.


Page 31

3.12 Directive on Demand Side Management in Agriculture

In view of the urgent need for conserving energy for the benefit of the

consumers in the State, the Commission had directed the CESC to take up

replacement of inefficient pumps with energy efficient pumps approved by the

Bureau of Energy Efficiency, at least in one sub-division in its jurisdiction.


The Commission notes that the CESC is implementing the agriculture-

DSM project in Smart Grid area of Hosakote feeder instead of implementing it

in T. Narasipura and Varuna areas as planned earlier, contending that no

investment is required for monitoring and control system and also no manual

intervention for obtaining baseline data. As the location for implementation of

agriculture-DSM project is now confirmed, the CESC needs to focus on early

implementation of the project without further delay and advancing any other

reasons. The Commission is of the view that any project conceived to be

beneficial and techno-economically viable, should be implemented in a time

bound manner to derive the envisaged benefits. The CESC is directed to speed

up the agriculture-DSM project in view of the obvious benefits it could accrue

to the system. Further, while implementing this project, it is important to take

necessary measures for coordination with all the stakeholders concerned to

arrive at a consensus on crucial measurement and verification methodology.

The Commission directs the CESC to expedite implementation of agriculture

DSM project in Hosakote feeder of Mysuru city where it is also implementing

Smart Grid project and submit the compliance thereon to the Commission

within three months from the date of this Order.


The CESC has been issued Detailed Work Award to M/s Enzen Global

Solutions Private Limited, Bangalore vide letter no. CESC/GM(P)/DGM(P),

AGM(P-1)/2018-19/DWA:189/6612-16 dated: 04.07.2018 to “Provide

Consultancy Services & preparation of Detailed Project Report(DPR) for

Agriculture DSM in 11Kv Hoskote feeder ” of Mysore Taluk. Now, the survey work

is under progress.

3.13 Directive on Lifeline Supply to Un-Electrified Households

The Commission had directed the ESCOMs to prepare a detailed and

time bound action plan to provide electricity to all the un-electrified villages,

hamlets and habitations in every taluk and to every household therein. The

action plan was required to spell out the details of additional requirement of

power, infrastructure and manpower along with the shortest possible time


Page 32

frame (not exceeding three years) for achieving the target in every taluk and

district. The Commission had directed that the data of un-electrified

households could be obtained from the concerned Gram Panchayaths and

the action plan be prepared based on the data of un-electrified households.


The Commission observes that the work of electrification of un-electrified

households in the jurisdiction of CESC is moving at a snail’s pace. As could be

seen from its compliance, even after lapse of so many years there are a large

number of households remain without having electricity, which is a matter of

serious concern.

The Commission notes that out of the total 2,03,375 number of un-

electrified households to be electrified, electrification of only 38,881 households

has been reported, leaving a balance of 1,64,494 households. However, it is

observed that only 63,953 households are covered for electrification under

various schemes, meaning that around one lakh households are not covered

under any of the schemes. The CESC should focus its attention and electrify

these balance households by covering them under any of the schemes so as

to provide the basic need of electricity to every household.

Further, the Commission concerned with the very slow pace of progress

of electrification, in its previous Tariff Orders had directed the CESC to cover

electrification of 5 per cent of the total identified un-electrified households

every month beginning from April, 2015, so as to complete electrification of all

the households in about twenty months. However, despite of the directive, the

CESC is yet to achieve substantial progress in respect of works taken up under

DDUGJY, DDG and SAUBHAGYA schemes.

The Commission therefore directs the CESC to initiate action to provide

electricity to the un-electrified households and cover all the remaining

households, expeditiously and report compliance thereon to the Commission

on the monthly progress achieved from May, 2018 onwards. The Commission,

as already indicated in the earlier Tariff Orders, would be constrained to initiate

penal proceedings under section 142 of the Electricity Act, 2003, against CESC,

in the event of its continued non-compliance of the directive.


CESC has achieved 100% electrification of un-electrified house holds in

four districts of Mysore, Mandya, Chamarajanagara and Hassan. The details

are updated in Soubhagya web portal being maintained by Ministry of Power,

Govt.of India.


Page 33

There are 1424 No. of Un electrified house holds to be electrified in

Kodagu district for which tender has been invited and award of contract is

under process. It is proposed to complete electrification work within March-

2019.

3.14 Directive on Implementation of Financial Management

Framework:

The present organizational set up of the ESCOMs at the field level

appears to be mainly oriented to maintenance of power supply without a

corresponding emphasis on realization of revenue. This has resulted in a serious

mismatch between the power supplied, expenditure incurred and the revenue

realized in many cases. The continued inability of ESCOMs to effectively

account the input energy and its sale in different sub-divisions of the ESCOM in

line with the revenue realization rate fixed by the Commission, urgently calls for

a change of approach by the ESCOMs, so that the field level functionaries are

made accountable for ensuring realization of revenues vis-à-vis the input

energy supplied to the jurisdiction of sub-division/ division.

The Commission had therefore directed the CESC to introduce a system

of Cost-Revenue Centre Oriented sub-divisions at least in two divisions, on a

pilot basis, in its operational area and report the results of the experiment to the

Commission.

Commission’s Views: The CESC has not submitted the compliance report in respect of

implementation of Financial Management Framework Model, on quarterly

basis as directed. The CESC is directed to submit the compliance regularly as

directed.

The Commission notes that the CESC is monitoring the performance of

divisions and subdivisions, using the financial framework Model suggested by

the Consultants. The CESC is directed to continue to review the performance of

the divisions & sub-divisions in relation to total energy received, sold, average

revenue realization and average cost of supply using the Model.

Further, the CESC should continue to analyze the following parameters

for each month to monitor the performance of the divisions/sub-divisions at

corporate level.

a) Target losses fixed and the achievement.

b) Target revenue to be billed and achievement.

c) Target revenue to be collected and achievement.

d) Targeted distribution loss reduction when compared to previous years’

losses.

e) Comparison of high performance divisions in sales with low performance


Page 34

divisions.

Based on the analysis, the CESC shall take corrective measures to

ensure100 per cent meter reading, billing, and collection; analysis of sub-

normal consumption; replacement of non-recording meters; etc.

The Commission reiterates its directive that the CESC shall review the

performance of its divisions & sub-divisions using the Financial Management

Framework model and regularly report compliance thereon on a quarterly

basis to the Commission.


As directed by the Commission, the CESC has implemented the

Financial management frame work and the compliance is being submitted to

the Commission regularly. The analysis of the performance of all the divisions

during FY19 (up to September 18) using the financial framework is enclosed as

Annexure-7.

3.15 Directive on Prevention of Electrical Accidents

The directive is as follows:

“The Commission has reviewed the electrical accidents that have taken

place in the State during the year 2016-17 and with regret noted that as many

as 402 people and 416 animals have died in the State due to these accidents.

From the analysis, it is seen that the major causes of these accidents are

due to snapping of LT/HT lines, accidental contact with live LT/HT/EHT lines,

hanging live wires around the electric poles /transformers etc., in the streets

posing great danger to human lives.

Considering the above facts, the Commission had directed the CESC to

prepare an action plan to effect improvements in the transmission and

distribution networks and implement safety measures to prevent electrical

accidents. Detailed division wise action plans shall be submitted by the CESC

to the Commission.


The Commission notes that despite remedial measures including

rectification of number of hazardous installations having been taken by the

CESC, the number of fatal electrical accidents involving both human and

livestock has increased, which is a matter of serious concern.


Page 35

The occurrence of electrical accidents indicates the existence of

hazardous installations in the network and hence, proper identification and

rectification of hazardous installations, should be regularly carried out without

any let up. Therefore, the CESC should focus its attention for identification and

rectification of all the hazardous installations, including streetlight installations /

other electrical works under the control of local bodies, on a continuous basis

to prevent electrical accidents. In addition, continuous awareness campaign

through visual/print media about safety aspects among public should be taken

up.

CESC should carry out more effective periodical maintenance works,

provide and install LT protection to distribution transformers and also ensure use

of safety tools & tackles by the field staff besides imparting necessary training

to the field staff at regular intervals.

Also, the Commission notes that the hazardous installations in the

distribution network is definitely because of the works carried out shabbily

without adhering to the best construction practices as per the standards, while

taking up construction/expansion of the distribution network. The CESC needs

to conduct regular safety audit of its distribution system and to carryout

preventive maintenance works as per the schedule following the guidelines

from the Safety Technical Manual issued by the Commission in order to keep

the network equipment in healthy condition.

The Commission reiterates its directive that the CESC shall continue to take

adequate measures to identify and rectify all the hazardous

locations/installations existing in its distribution system under an action plan to

prevent and reduce the number of electrical accidents occurring in its

distribution system. The compliance thereon shall be submitted to the

Commission every month, regularly.


The details of electrical accidents occurred during FY18 and up to

October 2018 are appended below:

The copy of the Safety Technical Manual prepared by a sub-

Committee, constituted by the Commission, comprising of experts from the

Sl.

No. Year

No of

accidents

Departmental Non - departmental

Animals

Compensation

paid in Rs

lakh Fatal Non- fatal Fatal Non- fatal

1 FY-18 174 5 30 49 24 66 24.92

2

FY-19

(upto-

Oct-18)

156 4 19 43 10 80 24.09


Page 36

Advisory Committee has been uploaded on CESC’s website for the benefit of

all employees as well as the consumers.

In order to prevent electrical accidents and spread awareness about

safety and conservation of energy, following action plan has been initiated in

CESC.

Identifying and rectification of hazardous locations like providing

intermediate poles to lengthy spans, replacement of deteriorated service

wires/conductors/poles, replacement of lower size conductor by higher size,

restringing of loose spans, shifting the transformers and lines which are close

to buildings or in dangerous locations etc.

Proper periodical and preventive maintenance of the distribution system

and cutting of tree branches coming in contact with power lines.

Providing all safety equipment to linemen and surprise inspection of works to

check the use of safety equipment by them.

Conducting safety meetings at section offices, to train the maintenance

staff regarding use of safety equipment and adherence to safety

procedures while working on lines like earthing on both sides of working

zone, use of hand gloves, insulated tools etc.

Issuing Notices to consumers constructing the buildings near distribution

system and to ensure proper clearances before servicing of new

installations.

Educating the consumers regarding the safety precautions to be taken by

them to avoid accidents, through media, interaction meetings, distributing

pamphlets.

Exhibiting the safety advertisements containing safety aspects in prime

location during public programmes, to educate the general public

regarding the safety precautions to be taken to avoid accidents.

Safety awareness advertisement at Railway Stations, Chandana TV

Programme, Vividabharati Radio Programme.

Safety awareness through street plays.

Highlighting the issues of conservation of energy and prevention of

electrical accidents on the reverse of the monthly electricity bill.

Displaying hoardings at all district Head Quarters and all offices of CESC.

Progress regarding action taken for Reduction of Electrical Accidents up

to Sep-2018

SL

NO DIVISION UNIT

MYSORE

CIRCLE

CR NAGAR-

KODAGU

CIRCLE

MANDYA

CIRCLE

HASSAN

CIRCLE

CESC

TOTAL

1

Replacement of Damaged/

Deteriorated RCC, PSC,

I-Beam, Tubular,

Ladder,Wooden Poles

Nos 803 866 1412 1015 4096

2 Replacement of Deteriorated

Aluminum Conductor Ckms 112.92 9.72 22.2 5 149.84


Page 37

SL

NO DIVISION UNIT

MYSORE

CIRCLE

CR NAGAR-

KODAGU

CIRCLE

MANDYA

CIRCLE

HASSAN

CIRCLE

CESC

TOTAL

3 Enhancement of Size of

Conductor Ckms 0.75 0 33.194 0 33.944

4 Replacement of Copper

Conductor Ckms 0 0 9 0 9

5 Providing

Intermediate poles

HT Line Nos 228 433 154 331 1146

LT line Nos 239 660 122 595 1616

6 No of Slanted poles set right Nos 541 635 681 892 2749

7 No of Places where lines close to

/above the buildings are shifted Nos 286 2 26 176 490

8 No of Places where the

Transformers are shifted to safe

place

Nos 37 0 18 41 96

9 No of places where Jumbled

service main connections are set

right

Nos 1087 311 102 299 1799

10 No of places where LT kits

/MCCBs are provided Nos 35 71 143 80 329

11 No of places where Aerial

Bunched cables are provided km 15 0 10.04 30 55.04

12 No of awareness programs for

public is conducted Nos 34 18 13 35 100

13 No of training programs to our

field staff conducted Nos 19 2 17 156 194

14

No of other Preventive

Maintenance works like Tree

cutting , Restringing of wires ,

Providing Proper fuses,

Replacement of Lead wires,

Providing Proper earthing etc is

carried out

Nos 2164 1083 229 4051 7527

Details of Identified Hazardous locations for FY-19 upto SEPTEMBER-18

ESCOM

OPENING

BALANCE AS

ON 31.03.2018

IDENTIFIED

UP TO SEP-18

TOTAL

HAZARDOUS

LOCATION

RECTIFIED

FOR THE

YEAR 18-19

(UPTO SEP-

18)

YET TO BE

RECTIFIED

AS ON

30.09.2018

CESC 1310 11721 13031 11515 1516


Page 38

As per 2.8 of KERC (terms and Conditions for Determination of Tariff

for Distribution and Retail Sale of Electricity) Regulations, 2006, CESC Mysore is

filing the Annual Performance Review for FY-18 as per audited accounts. The

Annual accounts FY-18 has been drawn up in accordance with the

Companies Act 2013 duly complying with the applicable accounting standard

issued by the Institute of Charted Accounts. The operating Performance and

financial performance of the Company for FY-18 is depicted in the foregoing

paragraphs.

4.1 Operating Performance of the year FY-18

A. ENERGY SALES:

The details of Actual and approved sales for FY-18 are depicted in the

following table:

CATEGORY

SALES FOR FY-18 VARIATION

OVER

APPROVED

SALES

% VARIATION

OVER

APPROVED

SALES

Approved

Sales in MU

Actual sales in

MU

LT-2a* 1030.81 993.91 -36.90 -3.58

LT-2b 9.73 9.62 -0.11 -1.13

LT-3 297 289.24 -7.76 -2.61

LT-4(b) 0.8 0.73 -0.07 -8.75

LT-4© 14.84 19.87 5.03 33.89

LT-5 143.77 140.6 -3.17 -2.20

LT-6WS 216.56 236.83 20.27 9.36

LT-6PL 111.53 111.2 -0.33 -0.30

LT-7 15.82 16.07 0.25 1.58

HT-1 463.65 422.09 -41.56 -8.96

HT-2(a) 776.95 669.15 -107.80 -13.87

HT-2(b) 126.28 121.53 -4.75 -3.76

HT-2c 65.27 49.85 -15.42 -23.63

HT3 a & b 84.51 73.27 -11.24 -13.30

HT-4 5.93 3.61 -2.32 -39.12

HT-5 5.08 3.25 -1.83 -36.07

Sub total other

than BJ/KJ and

IP sets

3368.54 3160.82 -207.72 -6.17

BJ/KJ 106.17 92.23 -13.94 -13.13

IP 2386.77 2540.15 153.38 6.43

Sub total of

BJ/KJ and IP sets

2492.94 2632.38 139.44 5.59

Auxiliary

Consumption

4.92

Total 5861.48 5798.12 -63.36 -1.08


Page 39

*Includes BJ/KJ consuming more than 40 units per month for FY-18

For FY-18 LT5a - 48.28 MU , LT5b -92.32 MU

The details of BJ installations consuming less than 40 units and more than

40 units and billed under LT2a are indicated below:

FY-18 Actuals

PARTICULARS NO.OF BJ

INSTALLATIONS(TOTAL

CONSUMPTIONS IN

MU

Installations Consuming less than 40 units 467971 92.23

Installations consuming more than 40 units

and billed under LT2a 27753 29.60

Total 495724

121.83

Sales Analysis: As could be seen from above the actual sales for FY-18 is less than the

approved sales by 63.36 MUs. There is an increase of 153.38 MUs in respect of

LT4a category. Further, the specific consumption in FY-18 has increased to 7075

units per annum against 6461 units per annum approved by the Hon'ble

Commission.

Details of specific Consumption of IP sets for FY-18 actual versus

approved are depicted in the following table;

Further , there is reduction of 107.80 MUs with reference to the

approved sales in respect of HT2a category.18 installations have availed

power on short term open access during FY-18.

Further, for the reasons mentioned above, there is a reduction of

4.75MUs and 15.42 MUs with reference to the approved sales in respect of HT2b

and HT2c categories also respectively.

The sales in respect of HT3 a&b, HT4 and HT5 categories also are in

decreasing trend with respect to approved sales. There is an increase in sales

to an extent of 20.27MUs in the LT water supply category with respect to

approved sales.

Auxiliary Consumption of KPTCL’s substations: Hon’ble Commission in its

Tariff order 2017 has determined tariff for auxiliary consumption of KPTCL’s

substations at the state average power purchase cost, as approved by the

commission in the Tariff orders issued from time to time.

SL.

NO. PARTICULARS

FY -18

APPROVED

FY-18

ACTUALS DIFFERENCE

%

DIFFERENCE

1 IP Consumption in MU 2386.77 2540.15 153.38 6.42

2 No. of IP Installation 369402 359021 -10381 -2.81

3 Specific consumption

per IP set 6461 7075 614 9.50


Page 40

Accordingly CESC, Mysore has billed the energy consumption of KPTCL’s

substations for auxiliary purposes during previous periods. The details are as

follows;

FY

AUXILIARY

CONSUMPTION IN

UNITS

RATE/ UNIT IN RS AMOUNT IN RS

2005-06 1723417 1.8844 3247607

2006-07 2251872 1.9184 4319991

2007-08 2572604 1.8812 4839583

2008-09 3347747 2.1083 7058055

2009-10 3826125 2.4736 9464303

2010-11 3961834 2.7901 11053913

2011-12 4287325 3.0755 13185668

2012-13 4205413 3.2024 13467415

2013-14 4277457 2.8937 12377677

2014-15 4617459 3.5700 16484329

2015-16 4765000 3.6000 17154000

2016-17 5039822 3.9400 19856899

Total 44876075 132509440

Letter has been addressed to the Financial Advisor (A&R), KPTCL,

Bengaluru vide letter no: CESC/ CFO/ DGM(EBC)/DGM(EBC-A)/ AGM(EBC-

A)/2017-18/10585-86 dated: 04.09.2017 for adjustment of the above amount

with the Amount of Transmission charges payable by CESC to KPTCL.

B. Distribution Loss

Commission approved Distribution loss trajectory for FY-18 is as under;

PARTICULARS APPROVED IN T.O. 2017

Upper limit 13.50%

Average 13.00%

Lower limit 12.50%

The actual energy sales for FY-18 and approved by Commission is depicted

here under:

SL.

NO. PARTICULARS

FY -18

APPROVED

FY-18

ACTUALS

1 Sales projection as per sales forecast (in MUs) 5861.48 5798.12

2 Distribution losses in % as projected 13.00 13.20

3 Distribution loss (in MUs) 875.85 881.87

4 Energy at interface points (MUs) (1+3) 6737.33 6680.00

5 Transmission losses (MUs) 234.98 184.23

6 Power Purchase at generating point (4+5) 6972.32 6864.23


Page 41

C. No. of Installations:

The details of Actuals and approved number of installations are

depicted in the following table:

CATEGORY NO. OF INSTALLATIONS FOR FY-18 VARIATION OVER

APPROVED NOS. % VARIATION

Approved Nos. Actuals in Nos.

LT-2a* 1842749 1855697 12948 0.70

LT-2b 3088 3042 -46 -1.49

LT-3 239319 236690 -2629 -1.10

LT-4(b) 202 206 4 1.98

LT-4© 7537 7806 269 3.57

LT-5 40946 40315 -631 -1.54

LT-6WS 25860 26350 490 1.89

LT-6PL 21592 22085 493 2.28

LT-7 34645 38535 3890 11.23

HT-1 140 148 8 5.71

HT-2(a) 917 961 44 4.80

HT-2(b) 590 610 20 3.39

HT-2c 283 256 -27 -9.54

HT3 a & b 95 92 -3 -3.16

HT-4 18 13 -5 -27.78

HT-5 26 24 -2 -7.69

Sub total other than

BJ/KJ and IP sets 2218006 2232830 14824 0.67

BJ/KJ 496020 467971 -28049 -5.65

IP 369402 359021 -10381 -2.81

Sub total of BJ/KJ

and IP sets 865422 826992 -38430 -4.44

Total 3083428 3059822 -23606 -0.77

*Includes BJ/KJ installations consuming more than 40 units per month

Enumeration of IP sets

As per the directions of the Hon’ble Commission in Tariff order dt: 30-03-

2016, CESC Mysore has taken up enumeration of IP Sets 11kV feeder wise by

capturing the GPS co-ordinates of each live IP set in CESC jurisdiction.

The work has been awarded to M/s BCITS Bangalore vide DWA Nos:

597/598/599 and 600 dated 24-07-2015.

At present Enumeration of IP sets project is completed in CESC Mysore.


Page 42

Status/progress of GPS based survey of IP set installations as on

30th September, 2018 is as follows: C

ircl

e

No

. o

f 1

1 K

V A

gri

/ R

ura

l F

eed

ers

Ag

ri

feed

ers

Ru

ral

fee

der

s

No

. o

f IP

set

s ex

isti

ng

as

on

Dec

20

17

(DC

B f

igu

re)

No

. o

f F

eed

ers

for

wh

ich

GP

S s

urv

ey

full

y c

om

ple

ted

No

. o

f IP

set

DT

Cs

cov

ered

No

. o

f IP

set

s co

ver

ed

% P

rog

ress

(8

/5*

10

0)

Authorised Unauthorised

In u

se

No

t in

use

/dri

ed u

p

/ab

and

on

ed (

Sea

son

ally

)

Dis

con

nec

ted

In u

se

No

t in

use

/dri

ed

up

/ab

and

on

ed (

Sea

son

ally

)

Dis

con

nec

ted

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Mysuru 206 196 10 97834 212 16947 100754 102.98 85396 1409 0 15358 752 0

CH Nagar

& Kodagu 161 161 0 69541 188 10998 70391 101.22 27159 378 0 42854 0 0

Hassan 311 311 0 107916 290 20331 123205 114.17 96652 1656 0 24897 0 0

Mandya 243 179 64 99894 257 17930 116807 116.93 73152 232 0 43423 0 0

Total 921 847 74 375185 947 66206 411157 109.59 282359 3675 0 126532 752 0

Vigilance Activities

In CESC Mysore, level wise inspection drives are being carried out to

check theft of energy and misuse of energy. The progress achieved during FY-

18 and FY-19(as on Sept-18) are as given below:

SL. NO PARTICULARS FY-18 FY-19 (SEP-18)

1 Installations inspected in nos 40495 20217

2 Discrepancies detected in nos 5479 4181

3 No of cognizable cases booked 693 326

4 Non cognizable cases booked 4786 3855

5 Penalty levied In Lakhs 1923.65 1002.97

6 Penalty collected In Lakhs 1638.5 775.35

SMART GRID PILOT PROJECT IN CESC:

Smart Grid Pilot project (SGPP) is implemented in V.V Mohalla Division of

Chamundeshwari Electricity Supply Corporation (CESC), Mysuru along with M/s

Enzen as Technology partner and Power Grid as project consultants.

The Total sanctioned DPR cost was Rs. 32.59 Crores out of which, 50% of

the project was funded by Ministry of Power, Govt of India Rs 16.3 Crores and


Page 43

the remaining 50% was shared by the System Integrator’s ( 26.86%) and CESC,

Mysuru bearing 23.14%.

Smart Grid Pilot Project area covered 14 feeders and 21824 consumers

of all categories including 512 irrigation pump sets, (19487 single phase & 2337

three phase energy meters) and 473 distribution transformer centers.

The project covered major functionalities such as Advanced Metering

Infrastructure, Outage Management, Peak Load Management; Condition

based Asset Management and mobile work force management, Integration of

Renewable & Distributed generation.

The implementation of the project was started on 30.04.2014 with a project

delivery period of 18 months. The project gone live on 20.06.2018. The delay

was due to technical challenges as this was the first of its kind in the country

and non-availability of standards at that point of time. The total expenditure

incurred to complete the project is Rs 36.41 Cr.

KEY BENEFITS REALIZED

Consumer profiling and consumption pattern analysis

AMI(Automatic metering infrastructure) with remote connect

/disconnect capabilities

Distribution transformer Condition Monitoring to extend life and reduce

Operating expenses

Ability to see consumption patterns in granular detail, enabling

identification of potential cases of fraud or energy theft.

No. of breakdowns with breakdown duration on real time.

Reduction of operational and future capital expenses due to

overloading and non-maintenance of assets

Establishing Reliability Indices and Key Performance Indicators (KPIs)

Customer Satisfaction

Extending life of supply side infrastructure.

Reduction in costly power purchase during peak hours

Flattening of the load curve – Peak Load shaving

Prevention of blackouts

Demand Supply Gap identification and remedial action planning

Outage detection and management

Tamper detection with disconnection

Time of Use tariff

Real-time load monitoring,

Load curtailment beyond sanctioned limit

Energy Audit & signaling for Load control

Net metering feature for Roof-top solar


Page 44

4.2 Financial performance of the Company for FY-18

The financial performance of CESC, Mysore as per the audited Annual

accounts for FY-18 compared with the approved ARR for FY-18 by the

Commission in Tariff Order 2017 is tabulated below;

SLNO. PARTICULARS AS REVISED

APPROVED

ACTUALS

FY-18

Revenue at existing tariff in Rs Crs

1 Revenue from tariff and Misc Charges 2154.32 2,240.57

2 Tariff subsidy in BJ/KJ 20.98 60.90

3 Tariff subsidy in IP 1164.74 1374.47

Total Existing Revenue 3340.04 3675.94

Expenditure in Rs Crs

4 Power purchase cost 2051.76 2654.31

5 Transmission charges of KPTCL 301.47 304.04

6 SLDC/PCKL Charges 3.14 4.18

Power purchase cost including cost of

transmission 2356.37 2962.54

7 Employee Cost - 415.70

8 Repairs & Maintenance - 50.39

9 Admin & General Expenses - 83.98

Total O&M Expenses 503.63 550.07

10 Depreciation 116.83 182.92

Interest and Finance charges

11 Interest on Capital loans 131.41 111.19

12 Interest on Working capital loans 69.23 60.33

13 Interest on consumer security deposit 35.40 38.02

14 Interest on belated payment on PP Cost 0 26.63

15 Other interest & Finance charges 0.52 1.19

Less : interest & other expenses capitalised 24.00 5.08

16 Total Interest & Finance charges 212.57 232.28

17 Other Debits* 0.00 14.78

18 Net Prior Period Debit/Credit* 0.00 54.37


Page 45

SLNO. PARTICULARS AS REVISED

APPROVED

ACTUALS

FY-18

19 Return on Equity 0.00 0.00

20 Funds towards Consumer

Relations/Consumer Education 0.50 1.19

21 Provision for contribution to P&G Trust

(Gok Liability) and Revision of Pay scale 0.00 0.00

22 Other Income 59.48 99.62

Provision for Taxation 1.63

23 ARR 3128.86 3898.97

24 Deficit for FY 16 carried forward -492.73 0

25 Regulatory asset 0

Net ARR 3621.58 3898.97

Six (6) copies of the annual accounts for FY-18 are enclosed

herewith as Annexure A.

The subsidy claims in respect of IP and BJ for FY-18 have been

furnished as given below:

THE SUBSIDY CLAIMS IN RESPECT OF IP AND BJ FOR FY-18 HAVE BEEN FURNISHED AS GIVEN BELOW:

MONTH CATEGO

RY

NO.OF.INSTALLATIONS CONSUMPTION(IN MU) RATE/

UNIT

DEMAND

(RS.IN

CRS)

METERE

D

UNMET

ERED TOTAL

METER

ED

UNMETE

RED TOTAL

Apr/17

BJ/KJ

CONSUMPTION

CHARGES 299599 0 299599 5.78 0.00 5.78 5.71 3.30

MIN CHARGES 127514 0 127514 0.13 0.00 0.13 29.17 0.38

TOTAL 427113 0 427113 5.92 0.00 5.92 34.88 3.69

IP-SET

9578 328456 338034 4.75 257.65 262.40 4.92 129.10

GRAND

TOTAL 436691 328456 765147 10.67 257.65 268.32 39.80 132.79

May/17

BJ/KJ

CONSUMPTION

CHARGES 328777

328777 6.67 0.00 6.67 6.22 4.17

MIN CHARGES 110079

110079 0.31 0.00 0.31 12.71 0.33

TOTAL 438856 0 438856 6.97 0.00 6.97 18.93 4.50

IP-SET

9623 329905 339528 4.70 176.01 180.71 5.40 97.58

GRAND

TOTAL 448479 329905 778384 11.68 176.01 187.68 24.33 102.09

Jun/17

BJ/KJ

CONSUMPTION

CHARGES 313928

313928 7.07 0.00 7.07 6.22 4.40

MIN CHARGES 119222

119222 0.08 0.00 0.08 45.65 0.36

TOTAL 433150 0 433150 7.15 0.00 7.15 51.87 4.76

IP-SET

9618 331733 341351 2.97 155.12 158.09 5.40 85.37

GRAND

TOTAL 442768 331733 774501 10.12 155.12 165.24 57.27 90.12


Page 46


MONTH CATEGO

RY


UNIT

DEMAND

(RS.IN

CRS)

METERE

D

UNMET

ERED TOTAL

METER

ED

UNMETE

RED TOTAL

Jul/17

BJ/KJ

CONSUMPTION

CHARGES 327693

327693 7.50 0.00 7.50 6.30 4.73

MIN CHARGES 112527

112527 0.08 0.00 0.08 43.32 0.34

TOTAL 440220 0 440220 7.58 0.00 7.58 49.62 5.07

IP-SET

9685 333072 342757 2.52 197.75 200.27 5.48 109.75

GRAND

TOTAL 449905 333072 782977 10.10 197.75 207.85 55.10 114.81

Aug/17

BJ/KJ

CONSUMPTION

CHARGES 327797

327797 7.64 0.00 7.64 6.30 4.81

MIN CHARGES 111715

111715 0.08 0.00 0.08 44.46 0.34

TOTAL 439512 0 439512 7.72 0.00 7.72 50.76 5.15

IP-SET

9709 334641 344350 3.16 203.89 207.04 5.48 113.46

GRAND

TOTAL 449221 334641 783862 10.88 203.89 214.76 56.24 118.61

Sep/17

BJ/KJ

CONSUMPTION

CHARGES 328235

328235 7.72 0.00 7.72 6.30 4.87

MIN CHARGES 107626

107626 0.07 0.00 0.07 43.37 0.32

TOTAL 435861 0 435861 7.80 0.00 7.80 49.67 5.19

IP-SET

9741 335801 345542 2.68 136.83 139.51 5.48 76.45

GRAND

TOTAL 445602 335801 781403 10.48 136.83 147.31 55.15 81.64

Oct/17

BJ/KJ

CONSUMPTION

CHARGES 328794

328794 7.84 0.00 7.84 6.30 4.94

MIN CHARGES 106733

106733 0.08 0.00 0.08 42.75 0.32

TOTAL 435527 0 435527 7.92 0.00 7.92 49.05 5.26

IP-SET

9805 336853 346658 2.89 89.86 92.75 5.48 50.83

GRAND

TOTAL 445332 336853 782185 10.81 89.86 100.67 54.53 56.09

Nov/17

BJ/KJ

CONSUMPTION

CHARGES 332553

332553 8.06 0.00 8.06 6.30 5.08

MIN CHARGES 104922

104922 0.07 0.00 0.07 44.17 0.32

TOTAL 437475 0 437475 8.14 0.00 8.14 50.47 5.40

IP-SET

9849 337878 347727 3.54 151.54 155.08 5.48 84.98

GRAND

TOTAL 447324 337878 785202 11.68 151.54 163.21 55.95 90.38

Dec/17

BJ/KJ

CONSUMPTION

CHARGES 336517

336517 8.16 0.00 8.16 6.30 5.14

MIN CHARGES 104139

104139 0.07 0.00 0.07 43.02 0.31

TOTAL 440656 0 440656 8.24 0.00 8.24 49.32 5.46

IP-SET

9960 339162 349122 3.80 244.51 248.31 5.48 136.07

GRAND

TOTAL 450616 339162 789778 12.03 244.51 256.54 54.80 141.53

Jan/18 BJ/KJ CONSUMPTION

CHARGES 334206

334206 8.21 0.00 8.21 6.30 5.17


Page 47


MONTH CATEGO

RY


UNIT

DEMAND

(RS.IN

CRS)

METERE

D

UNMET

ERED TOTAL

METER

ED

UNMETE

RED TOTAL

MIN CHARGES 104181

104181 0.07 0.00 0.07 42.20 0.31

TOTAL 438387 0 438387 8.29 0.00 8.29 48.50 5.49

IP-SET

9927 341125 351052 3.80 274.36 278.17 5.48 152.43

GRAND

TOTAL 448314 341125 789439 12.09 274.36 286.45 53.98 157.92

Feb/18

BJ/KJ

CONSUMPTION

CHARGES 335840

335840 8.19 0.00 8.19 6.30 5.16

MIN CHARGES 103766

103766 0.07 0.00 0.07 42.65 0.31

TOTAL 439606 0 439606 8.26 0.00 8.26 48.95 5.47

IP-SET

9983 343089 353072 4.66 299.94 304.60 5.48 166.92

GRAND

TOTAL 449589 343089 792678 12.92 299.94 312.86 54.43 172.39

Mar/18

BJ/KJ

CONSUMPTION

CHARGES 338487

338487 8.19 0.00 8.19 6.30 5.16

MIN CHARGES 104907

104907 0.07 0.00 0.07 44.07 0.32

TOTAL 443394 0 443394 8.27 0.00 8.27 50.37 5.48

IP-SET

10031 346247 356278 5.67 307.55 313.22 5.48 171.52

GRAND

TOTAL 453425 346247 799672 13.94 307.55 321.48 55.85 177.00

CONSOLI

DATED

BJ/KJ

CONSUMPTION

CHARGES 338487

338487 91.05 0.00 91.05 6.25 56.94

MIN CHARGES 104907

104907 1.18 0.00 1.18 34.84 3.96

TOTAL 443394 0 443394 92.23 0.00 92.23 41.09 60.90

IP-SET

10031 346247 356278 45.15 2495.00 2540.15 5.41 1374.48

GRAND

TOTAL 453425 346247 799672 137.38 2495.00 2632.38 46.50 1435.38

The subsidy received/accounted during FY-18 is as follows:

BJ/KJ category-Rs 65.61 Crores.

IP category -Rs.1121.53 Crores.

4.3 Capital Expenditure for FY 18:

CESC has carried out the works according to the “Capital Expenditure

Guidelins for ESCOMs” issued by the Commission. The overall goal of CESC

while taking up projects under E&I or any other scheme is to achieve the

following:

The network strengthening and expansion requirement

Improvement of power supply reliability

The target date for each of the project

Loss reduction trajectory.


Page 48

The following table gives the details of approved and actual capital

expenditure for FY18 (Rs in Lakhs)

SL. WORK

APPROVED

IN T.O. 2017

FOR FY-18

FY-18 ACTUAL

EXPENDITURE DIFFERENCE

1 Extension & improvement 23000 6634.55 16365.45

2 NJY 4000 11768.97 -7768.97

3 HVDS 0

0

4 R-APDRP 2500 10586.89 -8086.89

5 IPDS 5000 1793.05 3206.95

6 DDUGJY 10000 351.56 9648.44

7 RGGVY(Restructured)+DDG

877.59 -877.59

8 Replacement of failed Transformers 500 158.32 341.68

9 Service Connections 4000 14289.32 -10289.32

10 Rural Electrification(General)

A Electrification of Hamlets/HB/JC

under RGGVY

3400

B Providing infrastructure to Irrigation

Pump sets &energisation of IP SETS 1961.64 1438.36

C KutirJyothi(RGGVY)

11 Tribal Sub Plan

A Electrification of Tribal Colonies

(RGGVY) 200

B Energisation of IP sets 200.00 0

C KutirJyothi (RGGVY)

12 Special Component Plan

A Electrification of

HB/JC/AC(RGGVY) 700

B Energisation of IP sets 700.00 0

C KutirJyothi(RGGVY)

13 Tools & Plants 400 789.88 -389.88

14 Civil Engineering Works 500 1735.82 -1235.82

15

Providing Meters to DTC, BJ/KJ,

Street Light for replacement of

electromechanical meters, providing

modems to meters for communication

1000 702.90 297.1

16 Software Development and smart grid

project 967.54 -967.54

17

Providing control wire and switches

for street lighting, Timer switches,

Providing LED lights ect., in 5 model

villages in each MLA/MP

constituency

0

0

18 Model Sub-division 0

0

19 Mahamastakabhishekha Works

20 Ag DSM works

Total 55200 53518.03 1681.97

Note: The CAPEX for 2017-18 approved by the Hon’ble Commission is Rs.552

Crores. Consequent to implementation of IPDS, DDUGJY, RGGVY

12thplan, NJY works, SDP programme of GOK, replacement of

electromechanical meters by static meters and to provide infrastructure

to regularized UNIP, the budget of Rs.552 Crores was revised to 889


Page 49

Crores and approved in the 64th meeting of the Board of Directors of

CESC Mysore.

The Source of funding together with cost is as furnished below:

CAPITAL EXPENDITURE DURING 2017-18 RS.IN CRS.

Actual Expenditure incurred during the year 602.49

Total 602.49

Source of Funding Rs.in Crs.

Grants from Goverment 206.43

Fresh Borrowings 336.50

Internal resources 59.56

Total 602.49

Note: The statement showing the details of amount released and the

expenditure incurred upto 30.11.2018 and balance fund available in respect of

NJY Phases 1&2 and RAPDRP Part A and Part B are shown below:

SCHEME: R-APDRP Part-A Financial progress (as on Nov-2018)

NAME OF THE

COMPANY

NO. OF TOWNS

AMOUNT SANCTIONED IN FY-08-

09

ESCOMS OWN COST

TOTAL PROJECT

COST YEAR

RELEASED

EXPENDITURE

AMOUNT TO BE

RELEASED

CESC 12 29.38 0.03 29.41

2008-09 0 0.05

0.0

2009-10 8.32 0.03

2010-11 0 3.9

2011-12 0 0.0

2012-13 0 1.74

2013-14 8.32 6.09

2014-15 0 1.442

2015-16 0 3.2

2016-17 0 5.78

2017-18 0 6.64

20118-19 as on

Nov-18

12.77

0.54

Cumulative Total

29.41 29.41

Note: Additional DPR cost is sanctioned by M/s PFC Ltd., to an extent of Rs.0.50 Ccrores

(Existing project cost Rs Cr 28.91 +0.47=29.41)


Page 50

SCHEME R-APDRP Part B Financial progress (as on Oct-2018)

NAME

OF THE COMPA

NY

NO.

OF TOW

NS

TOTAL APPROV

ED

PROJECT COST

CENTR

AL

SHARE

(25% OF THE

APPROV

ED COST)

COUNT

ERPART

FUND

(TIED UP

WITH

M/S PFC)

YEAR RELEAS

ED EXPEND

ITURE

AMOUN

T TO BE RELEAS

ED

AMOUNT

TO BE RELEASED

AGAINST

COUNTERPART

FUNDING

TOTAL

AMOU

NT TO BE

RELEA

SED

CESC 12 179.56 44.89 134.67

2009-10 0

17.96 19.46 37.42

2010-11 26.93 0

2011-12 0 0

2012-13 15 48.49

2013-14 29.74 27.88

2014-15 0 13.27

2015-16 0 1.88

2016-17 11.52 6.21

2017-18 58.95 94.05

20118-19 as

on Oct-18 0 1.56

Cumulative

Total 142.14 193.34

Statement showing the details of amount released by GOK, and the

expenditure incurred upto 31.10.2018 and balance fund available as at

31.10.2018 in respect of Nirantarajyothi Project is as follows:

AMOUNT RELEASED TOTAL

EXPENDITURE

UP TO FY 18 GoK REC Ltd Total

I st Phase 99.39 68.46 167.85 198.70

II nd Phase 72.93 441.70 514.63 480.89

Pilot Project 0.00 0.00 0.00 10.78

Total 172.32 510.16 682.48 690.37

EXPENDITURE DURING 17-18 TOTAL

EXPR

BALANCE

FUND April May June July Aug Sept Oct Total

I st Phase 0 0 0 0 0 0 0 0 198.32 -30.46

II nd Phase 3.18 1.17 3.66 4.46 1.27 1.24 0 14.98 495.87 18.76

Pilot Project 0 0 0 0 0 0 0 0 10.78 -10.78

Total 3.18 1.17 3.66 4.46 1.27 1.24 0 14.98 704.97 -22.48

Note:- Rs 172.32 crs has been received as Equity towards NJY both Phase 1 & 2 Projects.


Page 51

5.1 Introduction

On an average, the daily requirement of power during the year FY-18

was around 22 MU per day. The peak load recorded during FY-18

was 1384.23MW on 30-03-2018 at 12:35 hrs. To meet the increased power

requirements, CESC Mysore has opted for procurement through short term

power purchase and medium term purchase. This action has been taken to

adhere to the power supply schedule

Power supply arrangement:

The power supply arrangement month wise during FY-18 is as given

below.

SL

NO MONTH

RURAL IP SEMI-

URBAN

DHQ (HSN,

MDY, KSHL &

CR NAGARA)

MYSORE

CITY HT & EHT

3PH 1PH 3PH

1 Apr-17 6:00:00 6:00:00 6:00:00 22:00:00 23:00:00 24:00:00 24:00:00

2 May-17 10:00:00 6:30:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

3 Jun-17 11:30:00 5:30:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

4 Jul-17 12:00:00 4:00:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

5 Aug-17 11:00:00 6:30:00 7:00:00 23:30:00 24:00:00 24:00:00 24:00:00

6 Sep-17 10:30:00 6:00:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

7 Oct-17 7:30:00 5:30:00 6:00:00 21:00:00 23:00:00 24:00:00 24:00:00

8 Nov-17 7:00:00 8:00:00 7:00:00 22:30:00 23:00:00 24:00:00 24:00:00

9 Dec-17 7:00:00 9:00:00 7:00:00 23:30:00 24:00:00 24:00:00 24:00:00

10 Jan-18 7:00:00 9:00:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

11 Feb-18 7:00:00 9:00:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

12 Mar-18 7:00:00 9:00:00 7:00:00 24:00:00 24:00:00 24:00:00 24:00:00

Avg 8:37:30 7:00:00 6:50:00 23:22:30 23:45:00 24:00:00

The peak load recorded month wise during FY 18 is as given below.


Page 52

PEAK LOAD FOR THE YEAR 2017-2018

SL.NO MONTH PEAK LOAD IN MW DATE TIME

1 Apr-17 1204.58 01.04.17 22:13:00

2 May-17 1065.4 05.05.17 10:12:00

3 Jun-17 1041.74 23.06.17 22:17:00

4 Jul-17 1081.03 11.07.11 10:29:00

5 Aug-17 1016.51 01.08.17 14:48:00

6 Sep-17 864.25 24.09.17 12:58:00

7 Oct-17 1038.17 31.10.17 11:17:00

8 Nov-17 1126.7 24.11.17 9:41:00

9 Dec-17 1187.1 29.12.17 10:29:00

10 Jan-18 1290.9 23.01.18 10:54:00

11 Feb-18 1351.64 23.02.18 11:05:00

12 Mar-18 1384.23 30.03.18 12:35:00

Max peak 1384.23 30.03.18 12:35:00

The details of monthly Minimum and Maximum load recorded during

April 2017 to March 2018 for the morning/evening peak periods and off-peak

periods is as given below:

MONTH

PEAK MORNING (6AM

TO 10AM)

PEAK EVENING (6PM

TO 10PM) OFF PEAK

MAX MIN MAX MIN MAX MIN

Apr-17 1075 542 1022 478 1205 507

May-17 961 319 916 485 1065 298

Jun-17 903 547 942 301 1042 574

Jul-17 965 595 897 437 1081 582

Aug-17 883 342 863 452 1017 346

Sep-17 729 340 767 432 864 298

Oct-17 858 361 882 425 1038 295

Nov-17 1119 580 946 522 1127 573

Dec-17 1183 56 907 609 1187 538

Jan-18 1205 865 954 716 1291 833

Feb-18 1184 838 1114 771 1352 820

Mar-18 1196 663 1105 646 1384 621


Page 53

5.2 Power Procurement for FY-18:

The Commission in its Tariff order dated 11th April 2017 approved the

Power purchase quantum and the cost. Actual source wise power purchase

quantum and the cost is tabulated below:

APPROVED AND ACTUAL POWER PURCHASE QUANTUM & COST FOR FY-18

Source

Approved Actuals Variation FY-18

Energy Cost

Cost

per

Unit

Energy Cost

Cost

per

Unit

Energy Cost

Cost

per

Unit

in Mu in Rs.Cr in Rs in Mu in Rs.Cr in Rs in Mu in

Rs.Cr in Rs

KPCL Hydel 2435.00 153.76 0.63 1409.98 114.98 0.82 -1025.01 -38.78 0.18

KPCL Thermal 1031.07 445.66 4.32 829.95 429.73 5.18 -201.12 -15.92 0.86

IPPs(UPCL) 164.70 80.70 4.90 142.53 72.21 5.07 -22.17 -8.49 0.17

CGS 2184.12 774.41 3.55 2392.61 911.42 3.81 208.49 137.01 0.26

NCE 761.16 331.87 4.36 643.36 272.82 4.24 -117.80 -59.05 -0.12

Bundled Power 67.39 29.92 4.44 142.04 62.05 4.37 74.65 32.13 -0.07

Others(PCKL,Sec-11,KSEB

etc.) 0.00 0.00 0.00 9.99 30.52 30.54 9.99 30.52 30.54

Short-term /Medium Term 316.19 120.00 3.80 607.30 253.43 4.17 291.11 133.43 0.38

PP under UI & other(TBHE) 1.00 0.18 1.84 13.06 5.48 4.20 12.06 5.30 2.36

Energy Balancing 0.00 0.00 0.00 663.77 272.14 0.00 663.77 272.14 0.00

KPTCL Transmission charges 0.00 301.47 0.00 0.00 304.04 0.00 0.00 2.57 0.00

SLDC & POSOCO charges 0.00 3.52 0.00 0.00 3.38 0.00 0.00 -0.14 0.00

PGCIL 0.00 109.79 0.00 0.00 223.46 0.00 0.00 113.67 0.00

Other States 11.70 5.08 4.35 9.65 6.86 7.11 -2.05 1.78 2.77

TOTAL 6972.32 2356.36 3.38 6864.23 2962.54 4.32 -108.08 606.18 0.94

From the above table it is clear that Total power purchase cost for FY-18

has increased from approved power purchase cost due to increase in cost per

unit rate as compared to approved in respect of all sources of Power except

NCE and bundled power even though the actual quantum of power purchase

is within the approved quantum of power purchase.

5.3 Renewable Purchase Obligation of CESC, Mysore for

FY 18:

As per the KERC Notification No Y/02/17/277 dated 15.02.2018 CESC

Mysore shall purchase a minimum quantity of 11% of electricity from RE sources

other than Solar and 2.75% of Solar RE sources expressed as a percentage of its

total procurement excluding procurement from hydropower during a financial

year to meet the Renewable Purchase Obligation (RPO).

Details of the Non-solar and solar RPO of CESC Mysore for the year FY-18

is appended below:


Page 54

Solar RPO details of CESC for FY 18

NO PARTICULARS QUANTUM

IN MU

1 Total Power purchase quantum from all sources 6864.23

2 Total Power purchase quantum from all sources for the purpose of

calculation of RPO (As per Fifth Amendment of KERC) 5308.99

3 Solar renewable energy purchased under PPA route 215.53

4 Solar Energy purchased under Short-Term 0.00

5 Solar REC purchased at APPC 0.00

6 Solar energy pertaining to green energy sold to consumers under

green tariff 0.00

7 Solar energy purchased from other ESCOMs 0.00

8 Solar energy sold to other ESCOMs 0.00

9 Solar Energy purchased from NTPC as bundled power 48.30

10 Solar energy purchased from any other source (SRTPV) 4.90

11 Total Solar energy purchased 268.73

12 Solar Energy accounted for the purpose of RPO 0

13 Solar RPO complied in % 5.06%

Note: Surplus Solar Energy of 122.74 MU has been adjusted to Non Solar RE

Purchases to meet Non Solar RPO.

Non Solar RPO details of CESC for FY 18

NO PARTICULARS QUANTUM

IN MU

1 Total Power purchase quantum from all sources 6864.23

2 Total Power purchase quantum from all sources for the purpose of

calculation of RPO (As per Fifth Amendment of KERC) 5308.99

3 Non solar renewable energy purchased under PPA route 533.33

4 Non solar short term purchase from RE sources only (Incl.Sec-11) 0.00

5 Non Solar REC purchased at APPC 5.78

6 Non solar RE pertaining to green energy sold to consumers under green

tariff 0

7 Non solar REC purchased from other ESCOMs 0

8 Non solar REC sold to other ESCOMs 0

9 Surplus Solar REC accounted for the purpose of RPO 122.74

10 Total Non-solar energy purchased 650.29

11 Non solar RE accounted for the purpose of RPO 0

12 Non solar RPO complied in % 12.25%

Note: Surplus Solar Energy of 122.74 MU has been adjusted to Non Solar RE

Purchases to meet Non Solar RPO.

As could be seen from the above, CESC Mysore has met the Solar RPO

and the non-solar RPO for FY 18. As per the KERC Procurement of energy from

renewable sources (Fifth Amendment) Regulation, 2017 .Copy of the GO is

enclosed as Annexure – 8


Page 55

6.1 Capital structure to meet the investment plan

KERC MYT Regulations stipulate that for financing of future capital cost

of projects, a Debt: Equity ratio of 70:30 should be adopted. As per the

decision taken in the meeting held with Government in September 09, CESC

has considered 80% of the investment plan requirement as coming from the

borrowings and the rest from internal resources.

Generally internal resources are from:

1. Profit from operations after tax (which is available as dividend for

shareholders),

2. Depreciation in excess of loan repayment and

3. Consumer contribution.

i. Current debt service coverage of CESC, Mysore

In Crs.

Debt service coverage ratio FY 17 FY 18

EBIDTA (116.88) 251.62

Debt service 332.80 212.99

DSCR (0.35) 1.18

6.2 Apportionment of cost and assets – Methodology

ii. Examining the present system of maintenance of accounts/data:

Though CESC Mysore is in the business of distribution wires as well as

retail supply, the books of accounts maintained by the company currently do

not capture the fixed assets, costs or revenue pertaining to Distribution wires

and Retail supply or at voltage level separately. The Trial balance of the

Company is maintained at Division level which captures the details for the

entire business as a whole.

For the purpose of MYT the costs that are relevant to each of the

business are to be identified and segregated based on an apportionment basis

and logic. Further, the fixed assets need to be segregated based on the

numbers Stated in the balance sheet and at voltage level wise. Similarly from

out of the total income of the company, the income relating to wires business

and supply business has to be separated and accounted for.

For the current filing CESC has followed the methodology that was used

for segregation of costs and assets for the second control period


Page 56

To develop the short term solution (during second control period)

following steps were taken:-

1. Constitution of internal team: Based on the advice of consultants CESC

Mysore constituted an internal team comprising of technical as well as

accounts personnel drawn from both urban and rural areas as well as from

corporate office. The team so constituted was asked to suggest an

apportionment matrix for allocation based on their field experience and

judgment, which would be used for segregation of fixed assets and costs for

the company as a whole. As part of this exercise, the team was given the

authority to draw its own conclusions from the information and records

available, discussions held with the staff working at the gross root level etc.

2. Segregation approach and Methodology: As the accounts maintained

was for the ESCOM as a whole covering the wires and supply functions,

there is no segregation of fixed assets, expenses and income between the

Distribution business and Retail supply business. For the purpose of a macro

level segregation of fixed assets, costs and income, predominant concept

approach has been considered.

3. Methodology for segregation of fixed assets: As submitted above, an

internal team constituted for identification of % usage of each type of fixed

asset based on their experience and interaction with the field staff and

allocate them to wires and supply business on a % basis as under:

- Distribution wires - 33 KV ( if applicable)

- Distribution wires - 11 KV

- Distribution wires- LT network

- Retail supply. Based on the analysis of Trial Balance of the Company as on 31-03-2009

a matrix was developed to capture business-wise as well as voltage class-wise

details of assets. The committee constituted by CESC Mysore was asked to fill in

the format to arrive at the function-wise as well as voltage class-wise assets.

Based on their inputs fixed assets were segregated.

4. Methodology for apportionment of Expenses: Expenses can be

segregated into two major categories,

(a) Costs ‘that predominantly’ belong to a particular business to be

booked under such business i.e. Wires or Supply and

(b) Common costs which need to be allocated or apportioned based on

the apportionment rule or a Cost Driver.

The apportionment of expenses has been considered at each item of

expenses or expense groups from Account Group 70 to 83. The segregation of

expenses to arrive at costs under Distribution business and Retail supply business

is attempted on a best estimate basis.

There are eight major expense groups into which the expenses are

booked in the trial balance of the company. Segregation of expenses with


Page 57

allocation rule to be made for each expense account group. The Account

group details are as mentioned hereunder:

Account

Group Code Description

Expense amount to be considered for

apportionment

70 Power Purchase and Transmission

Charges All Power Purchase related expenses

74 Repairs and Maintenance Net Expenses after Capitalization

75 Employee Costs Net Expenses after Capitalization

76 Administration and General

Expenses Net Expenses after Capitalization

77.1 Depreciation Net Expenses after Capitalization

78 &

80

Interest and Financial Charges

Interest on belated payment of

power purchase

Net Expenses after Capitalization

79

77.5 & 77.6 Other Debits Net Expenses after Capitalization

83 Prior Period Expenses All prior period expenses

iii. Account Group 70: Power Purchase Expenses.

Account Group

code Description

Expenses to be booked

under

Account

Group

70.000

Power Purchase Expenses (Including SLDC,

ULDC charges) plus Transmission Wheeling and

Associated Charges

Retail Supply Business

iv. Account Group 74: Repairs and Maintenance Expenses

Account

Group code Description

Activity to be

booked under Cost Drivers / Apportionment logic

74.1

Repairs and

Maintenance

(Plant and

Machinery)

Distribution Wires

business & Retail

Supply business

In the ratio of Gross fixed asset value of

Plant and Machinery (Account Group

10.5) classified under Wires and supply

business as per the allocation matrix.

74.2

Repairs and

Maintenance

(Buildings)

Distribution Wires

business & Retail

Supply business


Buildings (Account Group 10.2)

classified under Wires and supply


74.3

Repairs and

Maintenance

(Civil works)

Distribution Wires

business & Retail

Supply business


Civil works (Account Groups 10.3 &

10.4) classified under Wires and supply


74.5

Repairs and

Maintenance

(Lines and Cables)

Distribution Wires

business

Allocate entire cost to Distribution wires

business

74.6

Repairs and

Maintenance

(vehicles)

Distribution Wires

business & Retail

Supply business


Vehicles (Account Group 10.7) classified

under each Retail supply and Distribution

wires business

74.7 Repairs and Distribution Wires In the ratio of Gross fixed asset value of


Page 58

Account


Activity to be


Maintenance

(Furniture &

Fixtures)

business & Retail

Supply business

Furniture and fixtures (Account Group

10.8) classified under each Retail supply

and Distribution wires business

74.8

Repairs and

Maintenance

(Office equipment)

Distribution Wires

business & Retail

Supply business


Office Equipment’s (Account Group

10.9) classified under each Retail supply

and Distribution wires business

v. Account Group 75: Employee Expenses

Account

Group

code

Description Activity to be


75 Employee

Expenses

Distribution Wires

business & Retail

Supply business

Apportionment of the total employee cost

on the basis of number of employees

effort broadly identifiable for each

business. This has been done on the basis

of cadre-wise employee’s effort for each

activity as captured by the Internal

Committee constituted by CESC Mysore

for this purpose.

vi. Account Group 76: Administration Expenses

Account


Activity to be


76 A&G expenses

Distribution Wires

and retail supply

business

Based on the expenditure profile in a typical

field unit the Internal Committee

constituted by CESC Mysore has captured

the expenses allocable to each of the

functions on a % basis.

vii. Account Group 77.1: Depreciation Expenses

Account Group

code Description

Activity to be booked

under

Cost Drivers /

Apportionment logic

77.1

Depreciation

Expenses

Distribution Wires business

& Retail Supply business

Based on the allocation of

Fixed assets to each function,

depreciation for each Asset

sub-group can be

proportionately allocated.

viii. Account Group 78: Interest and Financial charges

Account


Activity to be


78 series +

80 series

Interest and Financial

Charges

Interest on Power

Purchases

Distribution

Wires business

and Retail

supply

Interest on all term loans is allocated to Wires

business (further bifurcation of interest on loans to

each voltage class has to be made in the ratio of

gross fixed assets allocated to each of the voltage

classes). Interest on WC is allocated to both wires

and supply business as per norms. Interest on

Power Purchase dues and consumer security

deposit are fully allocated to supply business.


Page 59

ix. Account Group 79 and 77.5, 77.6: Other Debits;

Account

Group

code

Description Activity to be


77.600 Small and low value

items written off

Distribution

Wires business

& Retail Supply

business

Allocated at 50% for wires and 50% for

supply. Wires cost can be further segregated on

the basis of fixed asset allocation

77.611

Computer rentals

and maintenance

charges

Retail supply

business

This expenditure predominantly pertains to

Retail supply business.

77.7-62.4 Loss/gain relating to

fixed assets

Distribution

Wires business


Wires business. Wires cost is further

segregated on the basis of fixed asset allocation

77.5

Asset

decommissioning

cost

Distribution

Wires business


Wires business. Wires cost is further

segregated on the basis of fixed asset allocation

79.410 Bad debts written

off

Retail supply

business

Allocated the entire expense to Retail supply

business

79.460 Provision for Bad

and doubtful debts

Retail supply

business

Allocated the entire expense to Retail supply

business

79.5 Miscellaneous

losses and write offs

Distribution

Wires business

Allocated the entire amount to Distribution

Wires business

79.110 Material cost

variance

Distribution

Wires business

Allocated the entire amount to Distribution

Wires business

x. Account Group 83.000: Prior Period Expenses

Account

Group code Description Activity to be booked under

Cost Drivers /

Apportionment logic

83.600 -

65.600

Short/excess provision of

depreciation

Retail supply and Distribution

Wires business

In the ratio of allocation

of depreciation

83.700 -

65.700

Short/excess provision of

Interest and finance charges


Wires business

On the basis of interest

allocation methodology

followed

83.100 Short provision for power

purchase in previous years Retail supply

Allocate entire amount

to Retail supply

business

83.800 and

65.200

Withdrawal of Revenue

Demand

Receipts from consumers

relating to prior periods

Retail supply

Allocate entire amount

to Retail supply

business

83.850 -

65.900

Other expenses/income



Wires business

50% for wires and 50%

for supply

83.820 A&G expenses for prior

period


Wires business

In the ratio of allocation

of A&G expenses

65.800 Other excess provisions



Wires business

50% for wires and 50%

for supply

83.300 Operating expenses of

previous year


Wires business

In the ratio of operating

expenses of current year

83.500 Employee cost relating to

previous year


Wires business

In the ratio of employee

cost allocation for the

current year


Page 60

(i) Final apportionment matrix: Following is the final apportionment matrix

considered for apportionment of fixed assets, depreciation, costs and

revenue. This matrix has been developed on the basis of actual numbers

of the year FY 18 and the same is used for segregation of expenses for

the subsequent years.

33KV 11KV LT Supply Total

a) Gross fixed assets

10.1 9% 27% 40% 23% 100%

10.2 1% 32% 32% 35% 100%

10.3 3% 33% 31% 34% 100%

10.4 4% 38% 48% 10% 100%

10.5 3% 91% 3% 3% 100%

10.6 1% 33% 51% 15% 100%

10.7 0% 37% 42% 21% 100%

10.8 0% 33% 33% 34% 100%

10.9 0% 8% 36% 56% 100%

Software (Intangible asset) 0% 5% 90% 5% 100%

Total 1% 42% 43% 14% 100%

b) Accumulated depreciation

12.1 9% 27% 40% 23% 100%

12.2 1% 32% 32% 35% 100%

12.3 3% 33% 31% 34% 100%

12.4 4% 38% 48% 10% 100%

12.5 3% 91% 3% 3% 100%

12.6 1% 33% 51% 15% 100%

12.7 0% 37% 42% 21% 100%

12.8 0% 33% 33% 34% 100%

12.9 0% 8% 36% 56% 100%

Total 1% 38% 47% 14% 100%

c) Power Purchase cost

Power Purchase cost 0% 0% 0% 100% 100%

Transmission charge 0% 0% 0% 100% 100%

SLDC/RLDC charges etc. 0% 0% 0% 100% 100%

Any other charge relating to PP 0% 0% 0% 100% 100%

d) R&M expenses

74.1 3% 91% 3% 3% 100%

Tr. Repairs 3% 91% 3% 3% 100%

74.2 1% 32% 32% 35% 100%

74.3 4% 38% 48% 10% 100%

74.5 1% 33% 51% 15% 100%

74.6 0% 37% 42% 21% 100%

74.7 0% 33% 33% 34% 100%

74.8 0% 8% 36% 56% 100%

Others

Total 2% 65% 23% 9% 100%


Page 61


e) Employees cost

No of employees effort attributable to each

function 29 994 1438 2712 5173

75.1 to 75.8 1% 19% 28% 52% 100%

f) A & G expenses

Rent, Rates and Taxes 0% 10% 10% 80% 100%

Expenses incurred towards security

arrangements 0% 0% 0% 0% 0%

Insurance in fixed assets 0% 0% 0% 0% 0%

Fringe Benefit Tax 0% 0% 0% 0% 0%

Pagers, Cellular phones, E-Mail,

Telephone etc 0% 0% 20% 80% 100%

Postage 0% 0% 80% 20% 100%

Revenue receipt stamps/Computer

billing 0% 0% 0% 100% 100%

Legal Charges 0% 10% 10% 80% 100%

Audit fee 0% 33% 33% 33% 100%

Consultancy charges 0% 33% 33% 33% 100%

Technical fee 0% 0% 0% 0% 0%

Other professional charges 0% 33% 33% 33% 100%

Conveyance & Travel expenses 5% 45% 30% 20% 100%

Shared expenses of CESC Mysore with KPTCL 0% 0% 0% 0% 0%

Fees & subscription (Incl. KERC filling

charges 0% 0% 10% 90% 100%

Books, Periodicals and diaries 0% 40% 40% 20% 100%

Printing & Stationery 0% 30% 25% 45% 100%

Factory license-fee 0% 0% 0% 0% 0%

Advertisement expenses 0% 45% 45% 10% 100%

Computer stationary & floppies 0% 20% 20% 60% 100%

Contribution 0% 40% 40% 20% 100%

Electricity charges 0% 25% 25% 50% 100%

Statutory payment under Companies

Act 0% 0% 0% 0% 0%

Water charges 0% 25% 25% 50% 100%

Entertainment 0% 25% 25% 50% 100%

Miscellaneous expenses (recoveries) 0% 33% 33% 33% 100%

Freight & other material related

expenditure 0% 33% 33% 33% 100%

Total 1% 25% 23% 51% 100%

g) Depreciation

77.1107 1% 32% 32% 35% 100%

77.1206+77.1207 1% 32% 32% 35% 100%

77.131 3% 33% 31% 34% 100%

77.1406+77.1407 4% 38% 48% 10% 100%

77.1504+77.1506+77.1507+77.1517 3% 91% 3% 3% 100%

77.1607+77.1617 1% 33% 51% 15% 100%

77.1707 0% 37% 42% 21% 100%

77.181 0% 33% 33% 34% 100%

77.1907 0% 8% 36% 56% 100%

77.1917 0% 8% 36% 56% 100%

Total 1% 45% 41% 13% 100%


Page 62


h) Interest and other finance charges

Assumption: Interest on all term loans

supply business

78.1 to 78.540 1% 49% 49% 0% 100%

Guarantee commission 1% 49% 49% 0% 100%

Other interest and finance charges 1% 49% 49% 0% 100%

Interest and other finance charges

Assumption: Interest on following

loans to supply business

Interest on working capital (wires

business) 1% 49% 49% 0% 100%

Interest on working (Supply business) 0% 0% 0% 100% 100%

Interest to consumer 0% 0% 0% 100% 100%

Interest on belated payment of PP charges 0% 0% 0% 100% 100%

i) Other debits

Small and low value items written off 1% 25% 25% 50% 100%

Computer rentals and maintenance

Charges 0% 0% 0% 100% 100%

Loss/gain relating to fixed assets 1% 49% 49% 0% 100%

Asset decommissioning cost 1% 49% 49% 0% 100%

Bad debts written off 0% 0% 0% 100% 100%

Provision for bad and doubtful debts 0% 0% 0% 100% 100%

Miscellaneous losses and write offs 1% 49% 49% 0% 100%

Material cost variance 1% 49% 49% 0% 100%

Bad and doubtful debts provided for

others 0% 0% 0% 100% 100%

Total 0.68% 24.06% 24.20% 51.07% 100%

j) Prior period expenses/credits

Short/excess provision of depreciation 1% 38% 47% 14% 100%

Short/excess provision of Interest and

finance charges 0% 11% 11% 78% 100%

Short provision for power purchase In

previous year 0% 0% 0% 100% 100%

Withdrawal of Revenue Demand and

receipts from consumes relating to

prior periods

0% 0% 0% 100% 100%

Other expenses/income relating to

prior periods 1% 25% 25% 50% 100%

A & G expenses/income relating to

prior periods 1% 25% 23% 51% 100%

Other excess provision relating to prior periods 1% 25% 25% 50% 100%

Operating expenses of previous year 1% 25% 25% 50% 100%

Employee cost relating to previous year 1% 19% 28% 52% 100%

Material related expenses relating to previous year 1% 49% 49% 0% 100%

Excess provision if IT 1% 25% 25% 50% 100%

Total 2% 63% 63% -28% 100%

k) Other income

Interest on staff loans and advances 0% 0% 0% 0%

Income from Investments: 0% 0% 0% 0%

Interest on securities 0% 0% 0% 0%

Interest on Bank fixed deposits 0% 0% 0% 100% 100%

Income on other investments 0% 0% 0% 0%

Interest on loans/advances to suppliers/ Contractors 0% 0% 0% 0%


Page 63


Interest from Banks 0% 0% 0% 0%

Interest on loans to Societies 0% 0% 0% 0%

Income from Trading 0% 0% 0% 0%

Profit on sale, hire etc of apparatus 1% 49% 49% 0% 100%

Hire charges from Contractors 0% 0% 0% 0%

Material Cost Variance 1% 49% 49% 0% 100%

Profit on sale of stores 1% 49% 49% 0% 100%

Sale of Scrap 1% 49% 49% 0% 100%

Other Misc Receipts from trading 0% 0% 0% 100% 100%

Other income 0% 0% 0% 100% 100%

Income/Fees collections against staff welfare

activities: 0% 0% 0% 0%

Recoveries for transport facilities 0% 0% 0% 0%

Miscellaneous Receipts: 0% 0% 0% 0%

Income due to right of way granted for laying fibre

optic cables/co-axial cables on T & D

system

1% 49% 49% 0% 100%

Rental from staff Quarters 1% 19% 28% 52% 100%

Rental from others 1% 19% 28% 52% 100%

Leave contribution 0% 0% 0% 0%

Excess found on physical verification of cash 0% 0% 0% 0%

Excess found physical verification of stock 1% 49% 49% 0% 100%

Excess found physical verification of Assets 0% 0% 0% 0%

Recovery from transport & vehicle expenses 0% 0% 0% 0%

Commission for collection of electricity duty 0% 0% 0% 100% 100%

Misc. recoveries 0% 0% 0% 100% 100%

Incentives received 0% 0% 0% 100% 100%

Provision for Bad debts withdrawn 0% 0% 0% 100% 100%

Extra-ordinary credits 0% 0% 0% 100% 100%

Total 0.05% 1.78% 2.03% 96.14% 100%

l)Provision for taxation

Tax liability is assumed at 50% each

for wires & Supply business 1% 25% 25% 50% 100%

Following is the overall element wise apportionment matrix for wires as

well as supply business based on 2017-18 actuals.

xi. Apportionment Matrix (overall)

Wires Supply Total

Power Purchase 0% 100% 100%

Repairs & Maintenance 90% 10% 100%

Employee costs 48% 52% 100%

A&G expenses 55% 45% 100%

Depreciation 78% 22% 100%

Interest and Finance charges 100% 0% 100%

Other interest charges 0% 100% 100%

Other debits 48% 52% 100%


Page 64

Extra-ordinary items 0% 0% 0%

Prior period expenses 91% 9% 100%

RoE 75% 25% 100%

Provision for taxes 50% 50% 100%

Total 10% 90% 100%


Page 65

7.

7.1 O&M expenses

The following table shows the R&M, Employee cost and A&G expenses

considered for wires business as per the apportionment logic.

Distribution wires business – R&M expenses;

(In Rs. Crs.)

SL NO PARTICULARS FY 17

ACTUALS

FY 18

ACTUALS

1 Plant and Machinery 25.36 23.50

2

Transformers:

(a) R&M made departmentally

(b) R&M by private agencies

- -

3 Buildings 1.44 3.54

4 Other civil works 1.57 1.77

5 Hydraulic works - -

6 Lines, Cable Network, etc 11.09 16.83

7 Sub-station maintenance by

private agencies

- -

8 Vehicles 0.12 0.09

9 Furniture & Fixtures 0.00 0.00

10 Office Equipments 0.02 0.10

11 Others - -

12 R&M on Old assets - -

R&M on New assets - -

Total 39.59 45.83

Distribution wires business – Employee cost:

(In Rs. Crs.)

SL

NO PARTICULARS

FY 17

FY 18

ACTUALS ACTUALS

1 Salaries 73.41 128.97

2 Overtime 1.33 1.36

3 Dearness Allowance 27.18 11.39

4 Other Allowances 10.62 13.20

5 Bonus 1.89 2.46

6 Sub-Total (1 to 5) 114.43 157.38


Page 66

SL

NO PARTICULARS

FY 17

FY 18

ACTUALS ACTUALS

7 Medical expenses reimbursement 0.95 1.25

8 Leave travel Assistance 0.00 -

9 Earned Leave Encashment 5.24 8.38

10 Payment towards PF 3.08 2.59

11 Payment under Workmen's

Compensation Act

- -

12 Payment to Helpers/ Employees of

Storm and Monsoon Gang

0.34 0.13

13 Total Other staff costs ( 7 to 12) 9.61 12.35

14 Staff Welfare expenses 0.90 1.22

15 Terminal Benefits 26.27 33.75

16 Sub-total (14 to 15) 27.17 34.97

17 Addition liability on account of

pay revision

- -

18 Grand Total 151.21 204.70

Distribution wires business -Administration and General Charges:

(In Rs. Crs.)

SL

NO PARTICULARS

FY 17 FY 18

ACTUALS ACTUALS

1 Rent,Rates and Taxes 0.32 0.30

2 Service tax 0.00 0.00

3 Insurance on fixed assets 0.00 0.00

4 Fringe Benefit Tax 0.00 0.00

5 Pagers, Cellular phones, E-Mail,

Telephone etc

0.43 0.51

6 Postage 0.09 0.10

7 Revenue receipt stamps/Computer

billing

0.00 0.00

8 Legal charges 0.08 0.23

9 Audit fee 0.05 0.06

10 Consultancy charges 0.10 0.13

11 Technical fee 0.00 0.00

12 Other professional charges 24.13 22.31

13 Conveyance & Travel expenses 8.92 10.63

14 Shared expenses of CESC with KPTCL 0.00 0.00

Sub-total 34.12 34.28

15 Other expenses


Page 67

SL

NO PARTICULARS

FY 17 FY 18

ACTUALS ACTUALS

16 Fees & subscription (incl. KERC filling

charges)

0.13 0.11

17 Books, Periodicals and dairies 0.11 0.13

18 Printing & Stationery 0.60 0.72

19 Factory license fees 0.00 0.00

20 Advertisement expenses 0.48 1.43

21 Computer stationary & floppies 0.06 0.08

22 Contributions 0.06 0.02

23 Electricity charges 0.54 0.59

24 Expenses towards consumer

relation/education

0.01 0.60

25 Water charges 0.01 0.04

26 Revenue expenditure incurred on

software

0.48 1.77

Miscellaneous expenses (recoveries) 0.76 0.90

27 Total other expenses 3.25 6.38

Freight & other material related

expenditure

0.10 0.03

Vehicle running expenses (Store) 0.11 0.13

Transaction Charges paid to

Revenue collecting agencies

0.12 0.13

Expenditure related to EESL for

energy savings

2.04 2.40

A& G Expenses related to KPTCL

/ESCOMS P& G Trust

0.10 0.13

GRAND TOTAL 39.85 43.47

7.2 Depreciation

Based on the segregation methodology explained above, and the

capitalization % proposed, the fixed assets and the depreciation provision are

segregated as relating to wires business and supply business. Within the wires

business in the same has been further segregated based on the % usage of

assets.

The depreciation provision for wires business is as follows:

(In Rs. Crs.)

PARTICULARS FY 17

ACTUALS

FY 18

ACTUALS

Depreciation provision -wires business 129.63 162.87


Page 68

7.3 Other Debits

Company has incurred loss by writing off certain losses incurred in the

business due to wear and tear and obsolete equipments. The details are as

follows. CESC prays to allow the expenditure, since it is actually written off.

Other Debits (In Rs. Crs.)

PARTICULARS FY 17

ACTUALS

FY 18

ACTUALS

Small and Low value items written off 0.00 0.06

Computer Rentals/Maintenance charges - -

Losses/gains relating to Fixed assets 1.69 0.68

Assets decommissioning cost 0.77 0.55

Bad debts written off - -

Provisions for bad and doubtful debts - -

Miscellaneous losses and write offs 48.78 2.20

Material cost variance - -

Others - -

Grand Total 51.24 3.49

7.4 Interest & Finance Charges including interest on WC

Interest and finance cost of CESC stems from the borrowings for the

investment plan together with the short-term cash requirement for day to day

operations.

As explained at Para above, CESC has considered 80% of the

investment plan requirement as coming from the borrowings and the rest from

internal resources as per the decision taken in the meeting held with

Government in September 09. Interest on WC is worked out on the basis of the

methodology suggested by the commission in the MYT Regulations and the

entire is apportioned as per apportionment matrix shown above. The interest

and finance charges payable on existing loans are captured as per the terms

and conditions of each loan and in respect of new loans; the interest is as per

prevailing rates.

Loans outstanding and the interest charges payable as a whole both for

wires and supply business is as follows:

(In Rs. Crs.)

PARTICULARS FY17

ACTUALS

FY 18

ACTUALS STATUS OF LOANS

- Opening Balance 1193.24 1579.21

- Receipts 749.64 871.91

- Repayment 363.67 615.35


Page 69

PARTICULARS FY17

ACTUALS

FY 18

ACTUALS STATUS OF LOANS

- Closing Balance 1579.21 1835.77

- Interest Payments 95.98 111.19

- Less interest capitalised (12.84) (5.08)

-Net interest transferred to P&L 83.14 106.11

Other Interest and finance charges 0.00 1.19

Guarantee commission to GoK - -

Interest payable to KPCL and Others

on Power Purchases 27.64

26.63

Interest to Consumers 38.11 38.02

Interest on WC -Wires business 5.24 20.14

Interest on WC -Supply business 43.05 40.19


Distribution wires business – Interest and finance charges: (In Rs. Crs.)

SL

NO PARTICULARS FY 17 ACTUALS

FY 18

ACTUALS

1 33 KV 1.30 1.15

2 11 KV 53.11 67.77

3 LT network 46.81 63.60

Total 101.22 132.52

7.5 Net prior period credits / charges

Based on the apportionment logic defined, over and under provisions of

various expenses relating to prior periods has been distributed to wires and

supply business.

The year on year prior period debits considered for wires business is as

follows:

Distribution wires business-Allocation of Prior period credits/charges;


ACTUALS

FY 18

ACTUALS

1 33 KV 0.12 0.15

2 11 KV 4.35 8.23

3 LT network 5.02 8.99

Total 9.49 17.37


Page 70

7.6 Expenditure summary

Summary of CESC expenses pertaining to wires business are as follows:

ARR for wires business; (in Rs Crs)

PARTICULARS FY 17 FY 18

Actuals Actuals

Power Purchase - -

R&M Expense 39.59 45.83

Employee Expenses 151.21 204.70

A&G Expenses 39.85 43.47

Depreciation 129.63 162.87

Advance against depreciation - -

Interest & Finance Charges 101.22 132.52

Less: Interest & other expenses capitalised (12.84) (5.08)

Other Debits (incl. Prov for Bad debts) 51.24 3.49

Extraordinary Items - -

Other (Misc.)-net prior period credit 9.49 17.37

Total Expenditure 509.39 605.17

7.7 Taxes on Income

In the MYT application for all the years of the control period, the

company’s books show accumulated losses & hence no provision has been

made for taxes. If any taxes are payable /paid the same will be claimed as per

actuals.

7.8 Non-tariff income, income from other business

In the apportionment matrix a small proportion of the other income is

considered for wires business. The non-tariff income considered for the

respective years is shown below:

(In Rs. Crs.)

PARTICULARS FY 17

ACTUALS

FY 18

ACTUALS

Other income 1.54 1.30

Total 1.54 1.30

7.9 Distribution wires business ARR-year-wise

The year-wise Annual Revenue Requirement for wires business is

furnished below.


Page 71

(In Rs. CRS.)

PARTICULARS FY 17

FY 18

Actuals Actuals

Power Purchase - -

R&M Expense 39.59 45.83






Less: Interest & other expenses

capitalised (12.84) (5.08)





RoE

Provision for taxes 12.87 0.82

Less Non-Tariff Income 1.54 1.30

Annual Revenue Requirement 520.72 604.69


Page 72

8.1 Power purchase

Power purchase cost is the most significant expenditure of the

company. The source-wise power purchase cost for the years FY-17& FY-18 is as

shown below.

(In Rs. Crs.)

POWER PURCHASE COST:

Sl.No Source FY 17 FY 18

In Crs. In Crs.

Power purchase cost

1 KPC Hydel 95.34 110.20

2 KPC Thermal 606.49 429.73

3 VVNL Hydel 4.31 4.79

4 VVNL Diesel 0.00 0.00

5 IPPs 367.91 72.21

6 CGS 884.82 911.42

7 NCE 178.42 272.82

8 Others 63.47 95.48

10 Bilateral/Trading/UI/High cost 56.87 6.78

10a Short term 208.13 253.43

11 From-To Other ESCOMS 294.41 272.14

12 RPO Solar 0.00 0.00

Total 2760.15 2429.00

Other charges

1 Transmission charges 501.62 527.51

2 SLDC charges 2.40 3.14

3 SPCC, Inter escom charges etc. 2.74 2.89

Total 506.76 533.54

Grand Total 3266.91 2962.54

8.2 O&M expenses

R&M expenses -Retail supply business.

(In Rs. Crs.)

SL

NO PARTICULARS

FY 17

ACTUALS

FY 18

ACTUALS

1 Plant and Machinery 0.50 0.34

2

Transformers:

(a) R&M made departmentally

(b) R&M by private agencies

- -


Page 73

SL

NO PARTICULARS

FY 17

ACTUALS

FY 18

ACTUALS

3 Buildings 0.79 1.91

4 Other civil works 0.17 0.19

5 Hydraulic works - -

6 Lines, Cable Network, etc 1.67 2.04

7 Sub-station maintenance by private agencies - -

8 Vehicles 0.03 0.03

9 Furniture & Fixtures 0.00 0.00

10 Office Equipments 0.01 0.06

11 Others - -

12(a) R&M on Old assets - -

12(b) R&M on New assets - -

Total 3.18 4.56

Employee cost – Retail supply business.

(In Rs. Crs.)

SL

NO PARTICULARS

FY 17 FY 18

Actuals Actuals

1 Salaries 79.72 132.93

2 Overtime 1.44 1.40

3 Dearness Allowance 29.51 11.74

4 Other Allowances 11.54 13.61

5 Bonus 2.05 2.54

6 Sub-Total (1 to 5) 124.26 162.22

7 Medical expenses reimbursement 1.03 1.29

8 Leave travel Assistance 0.00 -

9 Earned Leave Encashment 5.69 8.64

10 Earned Leave Encashment -Rtd., employees 3.35 2.67

11 Payment under Workmen's Compensation Act - -

12 Payment to Helpers/ Employees of Storm and

Monsoon Gang

0.36 0.13

13 Total Other staff costs ( 7 to 12) 10.44 12.73

14 Staff Welfare expenses 0.98 1.25

15 Terminal Benefits 28.52 34.79

16 Sub-total (14 to 15) 29.50 36.04

17 Addition liability on account of pay revision & Acturial

valuation on ELS& FBF provision

- -

18 Grand Total 164.20 211.00


Page 74

Administration and General Charges – Retail supply business.

(In Rs. Crs.)

SL

NO PARTICULARS

FY 17 FY 18

ACTUALS ACTUALS

1 Rent,Rates and Taxes 1.29 1.18

2 Service Tax(Reverse Charge Mechanism) 0.84 0.27

3 Insurance on fixed assets 0.00 0.00

4 Fringe Benefit Tax 0.00 0.00

5 Pagers, Cellular phones, E-Mail, Telephone

etc 1.71 2.04

6 Postage 0.02 0.03

7 Revenue receipt stamps/Computer billing 10.29 15.42

8 Legal charges 0.30 0.93

9 Audit fee 0.03 0.03

10 Consultancy charges 0.05 0.06

11 Technical fee 0.00 0.00

12 Other professional charges 12.07 11.16

13 Conveyance & Travel expenses 2.23 2.66

14 Shared expenses of CESC Mysore with KPTCL 0.00 0.00

Sub-total 28.83 33.77

Other expenses

15 Fees & subscription (incl. KERC filling charges) 1.14 0.99

16 Books, Periodicals and dairies 0.03 0.03

17 Printing & Stationery 0.49 0.59

18 Factory license fees 0.00 0.00

19 Advertisement expenses 0.05 0.16

20 Computer stationary 0.10 0.11

21 Contributions 0.02 0.01

22 Electricity charges 0.54 0.59

23 Expenses towards consumer

relation/education 0.12 0.60

24 Water charges 0.01 0.04

25 Revenue expenditure incurred on software 0.48 1.77

26 Miscellaneous expenses (recoveries) 0.38 0.45

Total other expenses 3.35 5.33

27 Freight & other material related expenditure 0.05 0.01

28 Vehicle running expenses (Store) 0.06 0.06

29 Transaction Charges paid to Revenue

collecting agencies 0.06 0.06

30 Expenditure related to EESL for energy savings 1.02 1.20

31 A& G Expenses related to KPTCL /ESCOMS

P& G Trust 0.05 0.07

GRAND TOTAL 33.42 40.51


Page 75

8.3 Depreciation

Based on the segregation methodology explained in the earlier

paragraph, and the capitalization % proposed, the fixed assets and the

depreciation provision are segregated as relating to wires business and supply

business. The depreciation provision for supply business is as under:

(in Rs. Crs.)

PARTICULARS FY17 FY18

Depreciation provision -supply business 17.96 20.05

8.4 Other debits

Other debits head mainly consists of small and low value written off,

loses/gains relating to fixed assets, miscellaneous write offs etc applicable to

both the businesses and provision for bad and doubtful debts applicable to the

supply business.

Based on the allocation principles explained in pre-pages, the other

debits pertaining to retail supply business are as follows:

Retail supply business: Other debits.

(In Rs Crs.)

PARTICULARS FY 17 ACTUALS FY 18 ACTUALS

Small and Low value items written off 0.00 0.06

Computer Rentals/Maintenance charges - -

Losses/gains relating to Fixed assets - -

Assets decommissioning cost - -

Bad debts written off 1.12 0.54

Provisions for bad and doubtful debts 3.11 6.53

Miscellaneous losses and write offs - -

Material cost variance - -

Bad & doubtful debts provided for others 1.90 4.16


8.5 Interest & Finance Charges including interest on WC

Based on the segregation methodology explained the interest and

finance charges have segregated between wires and supply business.

Allocation of Interest & Finance charges – Retail supply business.

(In Rs.Crs)


ACTUALS

FY 18

ACTUALS

1 Interest payable on Power Purchases 27.65 26.63

2 Interest to Consumers 38.11 38.02

3 Interest on working capital -supply business 43.05 40.19


Page 76

Total 108.81 104.84

8.6 Net prior period credits / charges

Based on the apportionment logic defined, over and under provisions of

various expenses relating to prior periods has been distributed to wires and

supply business. The year on year prior period debits considered for supply

business in as follows;

Allocation of Prior period charges - Retail supply business.

(In Rs. Crs.)


Retail supply 12.56 37.00

8.7 Expenditure summary

Summary of CESC expenses pertaining to retail supply business are as

follows:

ARR for Retail supply business – Expenditure summary.

(In Rs. Crs.)


ACTUALS ACTUALS

Power Purchase 3266.91 2962.54

R&M Expense 3.18 4.56







capitalised - -





8.8 Taxes on Income

In the MYT application for all the years of the control period, the

company’s books show accumulated losses & hence no provision has been

made for taxes. If any taxes are payable/paid the same will be claimed as per

actuals.


Page 77

8.9 Non-tariff income, income from other business

In the apportionment matrix a small proportion of the other income is

considered for wires business. The non-tariff income considered for the

respective years is shown below:

Non-Tariff income (Other income) – Retail supply business.

(In Rs. Crs.)


Other income 131.44 98.32

8.10 Retail supply business ARR-year-wise

The year-wise Annual Revenue Requirement for supply business is

furnished below:

(In Rs. Crs.)


Actuals Actuals

Power Purchase 3266.91 2962.54

R&M Expense 3.18 4.56







capitalised - -

Other Debits (incl. Prov for Bad

debts)

6.13 11.29


Other (Misc.)-net prior period

credit

12.56 37.00


RoE - -





Page 78

Following table depicts the financial position of CESC Mysore for the

years 2016-17 and 2017-18, for the combined businesses of CESC Mysore i.e.

wires and supply.

Combined ARR (Distribution wires and Retail supply).

(In Rs. Crs.)


Power Purchase 3,266.91 2,962.54

R&M Expenses 42.77 50.39







capitalised

-12.84 -5.08

Other Debits (incl. Prov for Bad

debts)

57.37 14.78



Total Expenditure 4,122.56 3,996.96

RoE - -




Documents

CHAMUNDESWARI ELECTRICITY SUPPLY CORPORATION …