TAMIL NADU ELECTRICITY REGULATORY

COMMISSION

----------------------------------------------------------------

Determination of tariff for

generation, intra-state

transmission and distribution

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Order No. 3 of 2010 dated 31-07-2010

(effective from 01-08-2010)

TAMIL NADU ELECTRICITY REGULATORY COMMISSION

(Constituted under section 82 (1) of Electricity Act 2003)

(Central Act 36 of 2003)

PRESENT: Thiru. S. Kabilan - Chairman

Thiru. K.Venugopal - Member

Order No. 3 of 2010, dated 31-07-2010

In the matter of: Determination of tariff for generation, intra-State

transmission and distribution.

In exercise of power conferred by Section 62 and Section 86

(1) (a) of the Electricity Act 2003, (Central Act 36 of 2003), and after taking into

account the stipulations in the National Electricity Policy and the Tariff Policy,

TNERC (Terms and conditions for determination of tariff) Regulations 2005,

TNERC (Terms and Conditions for Determination of Tariff for Intra state

Transmission / Distribution of Electricity under MYT Framework ) Regulations,

2009, and after considering the views of the State Advisory Committee meeting

held on 11-03-2010 (Annexure I) in accordance with section 88, after examining

the comments received from the stakeholders (Annexure II) and after considering

suggestions and objections received from the public during the public hearings

held on 30-03-2010, 08-04-2010,13-04-2010 and 15-04-2010 (Annexure III) as

per Section 64, the Commission passes this order for determination of generation

tariff, intra-State transmission tariff and Retail tariff.

Sd/- Sd/- (K.Venugopal) (S. Kabilan) Member Chairman

CONTENTS

Para

Description

Page No.

1 Introduction 1

1.1 Preamble 1

1.2 Applicability of Order 2

1.3 Tariff Filing 2

1.4 Procedure Adopted 3

1.5 An Overview of TNEB 5

1.6 Operational Performance 6

1.7 Commercial and Financial Performance 7

1.8 Compliance of provisions under Section 131 of Electricity Act 2003

7

2 Issue-wise Summary of Views, Comments and Suggestions, TNEB response and Commission’s rulings

8

2.1 General 8

2.2 Quality of supply 11

2.3 AT & C Loss 11

2.4 Metering 12 2.5 Cost of Supply 13 2.6 Subsidy and Cross Subsidy 14 2.7 Generation 15 2.8 Power Purchase 16 2.9 Regulatory Asset 17 2.10 Tariff for HT Industries 17 2.11 Tariff for HT II A – Educational Institutions and

Recognized Hospitals 19

2.12 Tariff for HT II B – Places of Public Worship 19 2.13 Tariff for Domestic 19 2.14 Tariff for Hut 21 2.15 Tariff for LT Bulk Supply 21 2.16 Tariff for Street Light and Water Supply 22 2.17 Tariff for LT Educational Institutions, Recognized Hospitals

etc 22

2.18 Tariff for Places of public worship 23

2.19 Tariff for Cottage Industries 23

2.20 Tariff for Power Loom 24 2.21 Tariff for LT Industries 24

2.22 Tariff for LT Agriculture 26

2.23 Tariff for LT Commercial 27

2.24 Tariff for LT Temporary Supply 29

2.25 Free / Concessional Tariff 29

2.26 Request for separate category 30

2.27 TNEB’s Response 30

Para

Description

Page No.

2.28 TNEB’s response on the petition for Southern Railway 36

2.29 Commission’s Views on the objections/comments / suggestions

41

2.30 Commission’s Suggestions 50

3 Energy Requirement 58

3.1 Sales Forecast 58

3.2 Commission’s Sales Projections 64

3.3 Transmission and Distribution Loss 85 3.4 Commission’s Rulings and Directives on T & D Loss/

Energy Audit in earlier Tariff Order and TNEB’s response 87

3.5 Assessment of Unmetered consumption 89

3.6 Commission’s Rulings on T & D Loss 90

3.7 Net Energy Requirement 92

4 Energy Availability 94

4.1 Own Generating Station 94

4.2 Auxiliary Consumption 98

4.3 Capacity addition in Thermal Generation 101

4.4 Hydel Generating Stations 103

4.5 Wind Based Generation 106

4.6 Determination of quantum of energy to be purchased 107

5 Power Purchase 108 5.3 Central Generating Station 108

5.4 Independent Power Producers 110

5.5 NCES and Infirm Sources 111

5.6 Private Wind Mills 113

5.7 Determination of quantum of power purchase 115

5.8 Merit Order Ranking 116

5.9 Power Purchase Cost 119

Para

Description

Page No.

6 Expenditure 126

6.1 Segregation of Accounts 126 6.2 Commission’s Analysis and decision on allocation Of

expenditure to various functions 127

6.3 Interest on Loan Capital 134 6.4 Return on Equity 140 6.5 Depreciation 142 6.6 Operation and Maintenance Expenses 145 6.7 Repair & Maintenance 146 6.8 Employee Cost 147 6.9 Administrative and General Expenses 149 6.10 Allocation of O & M Expenses 150 6.11 Operating Expenses 151 6.12 O & M Expenses for new generating stations 152 6.13 Controllable and uncontrollable parameters 154 6.14 Interest on Borrowing for working capital 155 6.15 Other Debits 155 6.16 Comparison of expenses 157 7 Generation Tariff 159

7.1 to 7.8 General 159 7.9 Thermal Generating stations 160 7.10 Price of Primary Fuel 164 7.11 Quantity of Primary Fuel/Coal 165 7.12 Gross Station Heat Rate 166 7.13 Gross Calorific Value of coal 168 7.14 Secondary Fuel Oil consumption 170 8 Determination of Annual Transmission charges 191

9 Determination of Distribution Tariff

197

9.5 Other Income 202

9.6 Non tariff income 203

9.7 Net ARR 204

9.8 Revenue receipts 204

9.9 Revenue gap 206

9.10

Approach to tariff rates 206

9.11 Tariff schedules 213

Annexure

I Members of 19th State Advisory Committee Meeting held

on 11-03-2010

237

II List of Stakeholders who have submitted written Suggestions and objections

238

III Details of persons who deposed before the Commission 251

IV List of Letters received from TNEB 263

V Corrigendum 264

1

CHAPTER – 1

INTRODUCTION

1.1 Preamble 1.1.1 Consequent to the enactment of the Electricity Regulatory Commission

Act 1998 (Central Act 14 of 1998), the Government of Tamil Nadu

constituted the Tamil Nadu Electricity Regulatory Commission (TNERC)

vide G.O.Ms.No.58, Energy (A1) Department, dated 17-03-1999.

1.1.2 The Commission issued its maiden tariff order under section 29 of the

Electricity Regulatory Commission Act, 1998, on 15-03-2003 based on the

petition filed by the Tamil Nadu Electricity Board (TNEB) on 25-09-2002.

1.1.3 In Para 7.2 of the order dated 15-03-2003, the Commission issued the

following rulings:

The Commission thus rules that the revised tariffs would be applicable from 16th

March

2003 to 31st

March 2004, and till such further time as the TNEB does not approach the

Commission for tariff revision. The Commission also directs that, henceforth, the TNEB

should submit a Tariff Proposal for any financial year by the end of December of the

previous financial year. In other words, the Commission expects the TNEB to submit a

tariff revision proposal for FY 2004-05 before the end of December 2003, in case the

TNEB desires to revise the tariffs for FY 2004-05.

1.1.4 The TNEB did not come before the Commission for revision of retail tariff

till January 2010. In the meantime, Electricity Regulatory Commission Act,

1998 was repealed and the Electricity Act 2003 (Central Act 36 of 2003)

(hereinafter called Act) was enacted with effect from 10-06-2003.

1.1.5 The Commission notified the Tamil Nadu Electricity Regulatory

Commission (Terms and Conditions for Determination of Tariff)

Regulations 2005 (herein after called Tariff Regulations) on 03-08-2005

under section 61 read with section 181 of the Act.

1.1.6 The Commission issued separate order on Transmission charges,

Wheeling Charges, Cross Subsidy surcharge and Additional Surcharge on

2

15-05-2006, based on the petition filed by TNEB on 26-09-2005 under

section 42 of the Act.

1.1.7 Since the issue of tariff order dated 15-03-2003, the Commission has

issued two tariff orders between 2003 and 2010 for wind, biomass based

power plants and other captive and co-generation plants.

1.1.8 The Commission also notified the TNERC (Terms and Conditions for

Determination of Tariff for Intra state Transmission / Distribution of

Electricity under MYT Framework) Regulations, 2009 (herein after called

MYT Regulations).

1.1.9 This is the second order of the Commission on determination of tariff.

1.2 Applicability of Order:

1.2.1 This order will come into effect from 01-08-2010. The distribution tariff

contained in this order will be valid till 31-03-2011. TNEB shall file

necessary true up petition in accordance with the Regulation and till such

time the Commission passes the tariff order amending this tariff order, this

tariff would continue to be in force.

1.3 Tariff Filing

1.3.1 Sub-Regulation (3) of Regulation 6 of the TNERC (Terms and conditions

for determination of Tariff) Regulations 2005 specifies the following:

“(3) The application for determination of tariff for the existing Generating

Stations and Transmission System shall be accompanied by information in

the respective formats appended to these Regulations duly furnishing the

figures for the previous year, current year and ensuing year. The

application for determination of tariff by Distribution licensees shall be

accompanied by the information in the ARR formats appended to these

Regulations. The information for the previous year should be based on the

Audited Accounts and in case audited accounts of previous year are not

available, the audited accounts for the immediately preceding year should

be filed along with the unaudited accounts of the previous year.”

3

1.3.2 Regulation 43 (vi) of the Tariff Regulation 2005 specifies the following:

“(vi) In respect of power generated in the stations owned by the

distribution licensee and distributed by the licensee himself in his area of

supply, the generation tariff of the station shall be considered as the

transfer price to the distribution licensee which will be determined in the

licensee’s tariff petition itself”.

1.3.3 Thus the Regulations warrant TNEB to submit applications for

determination of generation tariff, Intra-State transmission tariff and retail

tariff with the informations in distinct formats specified in the Tariff

Regulations.

1.3.4 The TNEB submitted a single application for determination of tariff with

Aggregate Revenue Requirement (ARR) for all the functions with bundled

informations on 18-01-2010 along with the fee of Rs.10.00 lakhs.

1.3.5 The Commission in letter dated 22-01-2010 communicated certain

preliminary comments on the petition and directed the TNEB to rectify the

deficiencies before admission of the petition. The Commission also

directed the TNEB to remit the balance fee of Rs.4.64 Crores as per the

provisions in the TNERC Fees and Fines Regulations.

1.3.6 The TNEB in letter dated 08-02-2010 replied to some of the points raised

in Commission’s letter dated 22-01-2010. The TNEB also remitted the

balance fee of Rs.4.64 Crores.

1.3.7 The Commission admitted the petition filed by TNEB on 09-02-2010 and

registered as TP 1 of 2010.

1.3.8 The TNEB has filed a petition on 30-07-2010 praying for withdrawing the

revision of tariff for domestic consumers consuming 201 to 400 units bi-

monthly and 401 to 600 units bi-monthly proposed in the tariff petition filed

on 18-01-2010. This petition has been hosted in the website of the TNEB

and the Commission. This petition has been taken on records on the

Commission. The Commission heard the Chairman, TNEB on this petition.

As the prayer does not cause any injury to any other category of

consumers, the Commission allows the prayer of the TNEB.

4

1.4 Procedure Adopted

1.4.1 Regulation 7 (2) of Tariff Regulation specifies the following:

“The applicant shall publish, for the information of public, the contents of the

application in an abridged form in English and Tamil newspapers having wide

circulation and as per the direction of the Commission in this regard. The copies

of Petition and documents filed with the Commission shall also be made available

at a nominal price, besides hosting them in the website.”

1.4.2 The public notice received from the TNEB was approved and

communicated to TNEB on 23-02-2010, with a direction to arrange

publication of the notice in news papers and upload the same in the

website on 26-02-2010.

1.4.3 The TNEB published the public notice in the following newspapers on 26-

02-2010

(1) The New Indian Express (English Daily);

(2) The Deccan Chronicle (English Daily);

(3) Dinamalar (Tamil Daily) and

(4) Daily Thanthi (Tamil Daily)

1.4.4 The Petition was placed before the State Advisory Committee on 11-03-

2010. The list of Members participated in the meeting are in Annexure I.

The views / comments expressed by the members are included in

Chapter 2.

1.4.5 The Commission conducted public hearing at the following places on the

dates noted against each:

Sl.No Place Date

1 Rani Seethai Hall, Chennai 30-03-2010

2 Tamil Nadu Chamber of Commerce, Platinum Jubilee Hatsun Auditorium, Madurai

08-04-2010

3 Nani Kalai Arangam, Mani Higher Secondary School, Coimbatore,

13-04-2010

4 Taj Kalyanamandapam, Karur Bye Pass Road, Trichy

15-04-2010

5

1.4.6 The lists of participants in each public hearing are in Annexure III. The

views / comments / objections raised by the participants are discussed in

Chapter 2.

1.4.7 Based on the petition from Chief Electrical Engineer / Southern Railway an

exclusive meeting was convened on 23-06-2010.

1.4.8 As directed by the Commission on 23-06-2010 during the meeting, the

Southern Railway submitted the details in letter dated 02-07-2010. The

decision of the Commission on the prayer of Southern Railway is in

Chapter 8.

1.4.9 A meeting was convened on 29-06-2010 with the Secretaries to the

following Departments of Government of Tamil Nadu alongwith Chairman,

TNEB to obtain the views of the Government.

(1) Secretary to Government, Energy Department

(2) Secretary to Government, Finance Department and

(3) Secretary to Government, Information Technology Department

1.5 An Overview of TNEB

1.5.1 TNEB was formed as a statutory body by the Government of Tamil Nadu

(GOTN) on 01-07-1957 under the Electricity (Supply) Act 1948. The

Board is primarily responsible for generation, transmission, distribution

and supply of electricity in the State of Tamil Nadu.

1.5.2 The TNEB has the following generation capacity at its command as on 31-

03-2010.

Table 1: TNEB’s Generation capacity

Sl. No Generating Stations Capacity (in MW)

1 Coal based station 2970.00

2 Gas based station 515.88

3 Hydro Stations (36 stations) 2186.65

4 Wind Mills 17.55

I Total Own generation 5690.08

5 Share from Central Generating Stations (including share from un allocated share)

3130.00

6 IPPs 1154.16

7 Captive 214.00

II Total External source 4498.16

III Total capacity at command 10188.24

6

1.5.3 In addition to the above, there are 4872.22 MW of private wind mills

operating at weighted average Capacity Utilization Factor (CUF) of

19.57%. Around 65% of power generated is wheeled for captive use and

the balance is being purchased by TNEB. The TNEB is also purchasing

the surplus power from Co-generation (559.90 MW) and biomass (137.05

MW) power plants.

1.5.4 The TNEB has 1294 sub-stations, 5.37 lakh ckt kms of LT lines and 1.69

lakh ckt kms of HT lines. The TNEB is maintaining the T & D loss level at

18% since 2003-04.

1.5.5 The peak demand reached was 10180 MW on 19-03-2010. The maximum

daily consumption was 226.194 MUs on 14-05-2010.

1.6 Operational Performance

1.6.1 The TNEB has achieved the following capacity addition since last tariff

revision ordered in 2003.

(a) Gas - 288.88 MW

(b) Hydro -190.65 MW

The addition to capacity was not commensurate with the growth in

demand resulting in wide demand-supply gap and consequent

implementation of Restriction & Control measures.

1.6.2 The TNEB has generated 26856 MUs and 26731 MUs respectively during

2007-08 and 2008-09. They have purchas ed 37572 MUs and 37982 MUs

respectively during 2007-08 and 2008-09 from central generating stations,

IPPs, private windmills, CPP, Co-gen and from traders. They have

distributed 52831 MUs and 53065 MUs respectively during 2007-08 and

2008-09.

1.6.3 The TNEB’s coal based generating stations (except ETPS) were

performing well with more than the normative PLF of 80% and the PLF of

ETPS was 52% and 49% respectively during 2007-08 and 2008-09. The

gas based stations (except Basin Bridge) were performing at a of PLF

more than 70% during 2007-08 and 2008-09. During 2009-10

7

Kovilkalappal GTPS has achieved only 57% PLF for want of adequate

quantity of gas. Valuthur GTPS achieved only 46.62% as the station was

under major shut down from 09-01-2010. The Basin Bridge station being

operated as a peaking station using naphtha as a fuel was operated at a

PLF of 6% and 17% respectively during 2007-08 and 2008-09.

1.7 Commercial and Financial Performance

1.7.1 The Board’s collection efficiency is reported to be 99.81%.

1.7.2 Inspite of manifold increase in input cost there was no tariff revision for the

past seven years and there has been revenue deficit since 2003-04. The

accumulated deficit upto 2008-09 was Rs.16774.47 Crores (as per audited

accounts).

1.7.3 The GoTN has ordered reduction in the tariff ordered by the Commission

and free supply to certain categories of consumers by providing subsidy

under section 65 of the Act.

1.7.4 The maximum limit of borrowing power of the Board was Rs. 30,000

Crores and the loans outstanding as at the end of 2008-09 were Rs.20,

250.32 Crores. The gross and net assets value of the Board as at the end

of 2008-09 were Rs.25016.17 Crores and Rs. 14841.40 Crores

respectively.

1.8 Compliance of provisions under section 131 of Electricity Act 2003.

1.8.1 Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) was

incorporated on 15-06-2009. The certificate of commencement of

business has been obtained for the TANTRANSCO on 11-12-2009.

1.8.2 Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO)

and TNEB Ltd have been incorporated on 01-12-2009.

1.8.3 The Transfer Scheme is to be issued by the Government of Tamil Nadu.

1.8.4 The TNEB has been permitted to continue to function as an integrated

utility till 15-09-2010.

8

CHAPTER - 2

ISSUE-WISE SUMMARY OF VIEWS, COMMENTS, AND SUGGESTIONS,

RESPONSE of TNEB AND RULINGS OF THE COMMISSION

The following are the views / objections / suggestions expressed by Members of

the State Advisory Committee and other stakeholders.

2.1 General

2.1.1 The TNERC should reject the tariff proposal filed by the TNEB for the

following reasons

(i) The Commission’s directives in the earlier tariff order are either not

followed / complied with or less effective.

(ii) The TNEB could not furnish accurate figures like T & D loss. The TNEB

is fudging the figures of T & D loss so as to keep it constant.

(iii) The Commission’s condition in the last tariff order that TNEB shall

approach the Commission with annual tariff plan has not been

complied with.

(iv) A commercial entity has to match its income and expenditure but the

proposal of TNEB is in deficit.

2.1.2 The revision of tariff be postponed for another one year, as the industries

have not recovered fully from the economic recession.

2.1.3 Number of LT categories may be reduced from twelve to six.

2.1.4 Demand side management publicity should be done in terms of rupees

instead of units / MWs.

2.1.5 There is discrimination in supply of electricity. While Chennai is enjoying

uninterrupted power supply, other areas are subject to power cut. There

should be uniformity in power cuts.

2.1.6 While only 50% demand of domestic industries are met, MNCs are given

uninterrupted power supply. With the present reduced supply, the

industries will not able to absorb the increase in tariff. The proposed tariff

revision may be postponed till 30% power cut is lifted.

2.1.7 Tariff should be rationalized and TNEB should be made financially viable.

9

2.1.8 The financial crisis faced by TNEB is a temporary phenomenon as the

TNEB will earn enough revenue by sale of excess power to neighboring

states in 2012.

2.1.9 The tariff should not be hiked now in view of high inflation, economic slow

down, global financial crisis and loss of employment.

2.1.10 The entire power from Neyveli Lignite Corporation may be retained for

Tamil Nadu without sharing with neighboring states.

2.1.11 Monthly billing and spot collection of bills is recommended.

2.1.12 Tariff hike may be considered for those consumers who are consuming

more than 3000 units.

2.1.13 Remove Restriction & Control measures with immediate effect.

2.1.14 Announced and un-announced power cut has led to loss in production and

unemployment of labour.

2.1.15 Instead of three hours power cut, load shedding etc weekly power holiday

may be introduced. Weekly power holiday for plastic, rubber and power

loom industries can be declared instead of daily power cut and shut down.

2.1.16 The period of power cut is not specified and the power cut is continuing for

more than 1 ½ years.

2.1.17 Compact fluorescent lamp should be distributed to the public.

2.1.18 The frequent voltage fluctuations cause damage to electrical installations

and equipments.

2.1.19 Pass book should be provided for security deposits. Security deposit

should be collected for free power also.

2.1.20 Public Private Partnership in Transmission and Distribution may be

encouraged.

2.1.21 TNEB’s Balance Sheet is not displayed in the website. Atleast big

consumers should be provided with a copy of balance sheet.

2.1.22 LT : HT ratio shall be 2 : 1

2.1.23 During 11th five year plan, there will be power shortage of 2141 MW and

stop gap arrangements should be made to overcome the shortages.

2.1.24 Like oil sector bonds, Central Government should provide power sector

10

bonds to tide over the financial crisis of state utilities.

2.1.25 While giving building plan approval, installation of solar energy units

should be made compulsory.

2.1.26 Tariff should be increased by 10% every two years instead of 80% at once

to avoid tariff shock

2.1.27 TNEB should take steps to realize the arrears of power bill from the

consumers, arrest transmission losses, pilferages, power thefts and take

steps to reduce their establishment costs.

2.1.28 Supply of free power to huts and agriculture sector should be discontinued

2.1.29 Tariff revision should be subject to scrutiny & review of National Tariff

Policy and National Electricity policy.

2.1.30 TNEB to utilize solar energy and assist consumers in setting up the same

at their buildings. To facilitate this, help desks should be established in

every circle or region and create awareness about the central government

subsidy

2.1.31 Introduce different slabs according to drawl voltage of industries as is

being done in states like A.P and Kerala so that the losses will be borne by

the consumer only and not by TNEB. Non absorption of losses by TNEB

decrease their costs

2.1.32 Why is TNEB petitioning for Rs. 1928 Crores in 2010-11 when the deficit is

Rs 9418 Crores?

2.1.33 Commission should constitute an Independent Expert Group for going into

all aspects of the functioning and finances of TNEB and come out with a

White Paper in a time bound manner.

2.1.34 TNEB should have a full time Member in charge of DSM and this activity

should be given the same importance as Generation and Distribution. The

Commission should issue clear and unambiguous directives towards this.

2.1.35 Manpower employed / MW in thermal stations at 4.50 is higher than the

benchmark of 0.96.

2.1.36 Linking of T & D losses to power procurement imposes a financial risk on

the utility

11

2.1.37 TNEB has neither apologized nor requested for condonation of inordinate

delay for filing the petition since 2003-04

2.1.38 Commission should analyse how the TNEB has arrived at Rs 300 perkVA

as demand charges and whether it is justifiable

2.1.39 TNEB is turning a blind eye to shopkeepers using wet grinders at home

with domestic tariff and selling them in their shop. All this leads to

breakdown of transformers

2.2 Quality of supply

2.2.1 The electrical transformers are burnt due to over loading.

2.2.2 No manpower is available in TNEB to maintain transformers. Helpers

should be posted.

2.2.3 The tariff hike is acceptable; but quality power is required to sustain the

business.

2.2.4 The technical mismanagement, unchecked power losses due to outdated

generation / distribution systems, utilization mismatch resulting in trips and

damage to circuitry, avoidable load shedding and breakdowns consume

the system itself. As a system, TNEB’s operation and maintenance

system is outdated and unless revamped by technical audit and planned

development to eliminate power losses, frequent tariff revisions will have

to be done . The consumers deserve to be convinced that the canons of

financial propriety are fully adhered to by TNEB and requested the TNERC

to accept the tariff petition.

2.3 AT& C Loss

2.3.1 When the demand for power is growing, there cannot be an increase in AT

& C loss.

2.3.2 Bringing the AT & C loss level from 18% to 15% under R-APDRP scheme

is toughest job as it would be subject to diminishing returns.

2.3.3 TNEB may concentrate on R-APDRP scheme in high density areas, so

that the loss can be contained.

12

2.3.4 18% AT & C loss in Tamil Nadu is very static in spite of several steps

taken to reduce the same.

2.3.5 The Maharashtra Electricity Regulatory Commission has fixed a maximum

ceiling for T & D Loss upto which the licensee can go. The licensee has to

bear the loss over and the above the ceiling. On similar lines, the TNERC

may fix maximum ceiling for T & D loss and the loss above the ceiling shall

be borne by the TNEB.

2.3.6 Meters have been fixed in 93000 distribution transformers to assess the T

& D loss. But so for, no reading has taken place.

2.3.7 Electricity theft should be curbed since the theft results in increasing the

cost of power supply to common public.

2.3.8 The line loss is 16% which can be reduced to 4% through innovative

transmission and distribution system.

2.3.9 Electricity theft is being carried out with the connivance of TNEB staff.

2.3.10 High temperature treated wire should be used for reduction of T & D loss.

LED lamps should replace tube lights to have reduction in power

consumption even though the initial cost is high.

2.3.11 Super conducting wire has been invented by Thiru. Venkatmanickam in

USA by which the line loss has been reduced to 6.30%. Why is the TNEB

not taking such steps to reduce the losses?

2.3.12 TNEB’s inefficiency should not be passed on to the consumers.

2.3.13 Political parties tap electricity through unauthorized means for their

meetings. Political parties may obtain clearance for their meetings from

TNEB..

2.3.14 Electrical instruments and appliances with star rating should be purchased

to encourage energy conservation.

2.4 Metering

2.4.1 TNEB can go for 100% metering to get correct quantum of subsidy for

agricultural consumers.

2.4.2 Non metering of electricity service connections amounts to violation of

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Electricity Act 2003.

2.4.3 The farmers hesitate for metering agricultural services because they fear

that in future the agricultural services could be billed.

2.4.4 More effective way of implementing metering in the agricultural service

connections is through incentivizing.

2.4.5 Unless the farmers association is convinced, meters cannot be installed in

agricultural service connections.

2.4.6 Metering of agricultural services is a political decision. TNERC must have

said ‘No’ to the postponement of agricultural metering. TNEB should start

the metering of agricultural connections as soon as possible.

2.4.7 Free power could continue but metering agriculture power is required to

avoid wastage and to monitor the supply to agriculture connections.

2.4.8 Metering has not been done properly in the past. Metering is the gateway

of revenue to TNEB. The lethargic attitude of the middle / senior level

officials in TNEB has resulted in improper implementation of metering

policy.

2.4.9 Metering should be done in kVAh instead of kWh.

2.4.10 Metering involves expenditure on cost of meters and on employees.

2.4.11 Meters should be provided at transformer end.

2.4.12 MRT may be established to check the meters for accuracy.

2.4.13 There should be waiver of meter rent in every CC bill as the consumers

have already paid the meter caution deposit

2.4.14 Board to employ adequate manpower to complete the meter reading of

transformers and windmills

2.4.15 There is inordinate delay in purchase of meters for LT services

2.4.16 Meters should be sealed to avoid tampering

2.5 Cost of Supply

2.5.1 Differential tariff may be fixed according to the voltage of supply. The

TNEB should approach the Commission with a cost to serve model and

leave it to the Commission to decide the tariff.

14

2.5.2 The steps taken by TNEB to reduce the cost to serve may be brought out.

2.5.3 Average cost of supply to each class of consumers should be made public.

2.5.4 As per the National Tariff Policy, the tariff to the consumer should be +

20% of the average cost of supply. It may be ensured that the National

Tariff Policy is not violated during the finalization of tariff.

2.5.5 The employee cost in TNEB is more and same should not be imposed on

the consumers.

2.5.6 When other input costs have increased considerably over the period of

time, the tariff revision has to be welcomed.

2.5.7 Star hotels, hospitals, places having centralized air condition should be

levied tariff at cost to supply.

2.6 Subsidy and Cross Subsidy

2.6.1 To a query as to whether the GOTN would continue to subsidize the

consumers at current level, the representative of Government informed

that the level of subsidy will be decided only after the Commission finalizes

the tariff order.

2.6.2 Agricultural subsidy is provided by the Government. Cross subsidy cannot

be continued over a long period of time and it should be brought down

over a period of time. However, subsidy can be continued.

2.6.3 Social obligation should be left to the Government of Tamil Nadu.

2.6.4 In neighboring States like Andhra Pradesh and Karnataka, the subsidy is

primarily allocated to Agriculture whereas in Tamil Nadu, the subsidy is

largely allocated to domestic consumers and only a little subsidy is

allocated to Agriculture sector. Hence more subsidies need to be provided

to Agriculture sector.

2.6.5 Gap between cost to serve and revenue is Rs.1.66 per unit.

2.6.6 Subsidy should be given to economically backward people and not to the

affluent people. 20% rich lands lords enjoy 80% of free electricity and 80%

poor agriculturists cannot access even the balance 20% electricity. It is to

be decided as to whom the increase should be given.

15

2.6.7 The working women hostel being run on nominal rates, presently charged

under commercial tariff may be given government subsidy.

2.6.8 There should be no cross subsidy by industry sector to agriculture sector.

The GOTN gives agricultural subsidy to the tune of Rs.263 Crores but

actually it should be Rs.4118 Crores.

2.6.9 M/s. Price Water House Cooper’s study report conducted at the instance

of SIMA states that 90% of the cross subsidy is passed on to industrialists

and 6% is borne by the Government of Tamil Nadu as against 50% norms

fixed under Electricity Act 2003.

2.6.10 National Tariff Policy states that the band width between the maximum

and minimum tariff should be + 20%. Hence, the Government of Tamil

Nadu should pay the cost to TNEB for the power supplied at subsidized

tariff rate.

2.6.11 90% of micro industries are operated from rental buildings. There is more

number of units in one campus. One main meter is fixed and sub meters

are fixed for each unit. Subsidy may be extended to sub meter in each

unit.

2.7 Generation

2.7.1 Plant load factor is adopted between 85% and 87%. TTPS is more than 25

years old and the estimated PLF of 80% is not possible. TNEB has to

carry out expansion activity and hence, the proposed tariff increase has to

be accepted.

2.7.2 There should be 10% increase in tariff to enable the TNEB to carry out the

capacity addition programmes.

2.7.3 TNEB has not installed any power generating station of its own and

depends on IPPs. The PPAs should have been regulated.

2.7.4 The meter readings are not taken regularly at the meter fixed at the wind

mill generation units and there is no grounding transformer.

2.7.5 TNEB is un-necessarily using high cost imported coal (Rs.6500 per ton)

instead of low cost domestic coal costing Rs.2400 per ton. Coal import

16

should be avoided by using local coal.

2.7.6 Electricity demand is increasing day by day. Hence, at least three ultra

mega power projects with the capacity of 4000 MW each should be

installed to meet the increasing demand.

2.7.7 The installation charges of solar power are costly but its maintenance

charges are nil. For manufacturing Nano solar silicon units, full subsidy

should be provided in order to procure solar cells at affordable prices.

2.7.8 Coal should be purchased based on useful heat value.

2.7.9 TNEB can consider setting up new plants at Ennore and Tuticorin instead

of renovating the existing plants.

2.7.10 Adjustment of Wind mill power generation may be permitted for LT

consumers.

2.7.11 Free colour TV is provided without adding adequate generation capacity.

2.7.12 Wrong classification by TNEB of some generators as captive power plants

has deprived the Board of cross subsidy surcharge

2.8 Power Purchase

2.8.1 In the previous Tariff Order, the Commission ordered the TNEB to

optimize the cost of power purchase and reduce the interest burden.

TNEB has not taken any steps to vacate the stay obtained by IPPS in the

matter of optimizing the cost of power purchase.

2.8.2 Neighboring state of Andhra Pradesh had revised the PPAs with IPPs and

reduced the power purchase cost.

2.8.3 There is no logical reason to increase the wind tariff rate from Rs.2.30 to

Rs.3.39 per unit.

2.8.4 Sugar mills are earning huge profits by way of selling sugar, producing

ethanol / alcohol, bio manure production and selling power generated

through co-generators. The cost of power purchase from sugar mills can

therefore be reduced.

2.8.5 In the merit order list submitted by TNEB it is observed that the cost of

power from Kudankulam plant is Rs.4.80 per unit. At this cost how can

17

cheaper power be given to common consumer?

2.8.6 There should be uniform rate for the power generated from wind mills

irrespective of the date of commissioning.

2.8.7 Excess expenditure on purchase of power should be compensated by

Government as subsidy.

2.8.8 Ways and means to recover power purchase cost need to be found

2.9 Regulatory Asset

2.9.1 Regulatory Asset concept should never be an adjustment mechanism for

accounting of losses as per International Financial Reporting System

(IFRS).

2.9.2 The losses of Rs.25500 Crores have been converted into Regulatory

Asset. How it is going to help TNEB? These assets should be utilized for

improvement of TNEB.

2.9.3 Consumers should not bear the cost of the proposed creation of

Regulatory Assets

2.10 Tariff for HT Industries

2.10.1 The consumption for residential / commercial purposes under HT tariff 1

should be metered separately and charged under appropriate tariff instead

of the present LT tariff 1C.

2.10.2 Foundries require continuous power supply.

2.10.3 Automobile business is picking up and the industries may be permitted to

use power upto the contracted demand.

2.10.4 There was a Supreme Court judgment that the hospitals should not be

classified under commercial tariff and it should be treated as industries for

the purpose of tariff.

2.10.5 Power transmission in Maharashtra is provided through express way.

Similar facilities are required in Tamil Nadu.

2.10.6 In Tamil Nadu, peak hour charges are levied for consumption between

6.00 PM to 10.00 PM. In Andhra Pradesh, no surcharge is levied. There is

18

no statistics to show as to how 6.00 AM to 9.00 AM is considered as peak

hours. This period may not come under peak hour. 6 AM to 9 AM to be

made as normal slot as TNEB has not justified this as a peak slot

2.10.7 6.00 PM to 10.00 PM is the R & C period and load shedding is 3 hours.

Total power cut is for seven hours. 70% demand charges are collected

when only 49% power is made available with 51% power cut.

2.10.8 There should be no cross-subsidy burden on HT consumers.

2.10.9 Peak hour charges are collected at 20% whereas the incentive for

consumption during 10.00 PM to 5.00 AM is provided at 5%. The night

shift allowance (incentive for night consumption) may be increased to

20%.

2.10.10 Fresh projects are diverted to other countries outside India due to high

cost of power / production.

2.10.11 Government of Tamil Nadu earns revenue of Rs.26850 Crores from

industries. There is a possibility of the industries moving out to other

States due to power cut and expected revenue may not come.

2.10.12 The demand charges at Rs.300 per kVA per month fixed before the FY

2003 is being continued and it should be reduced.

2.10.13 Textile industry is the single largest consumer for TNEB and out of total

HT power load, 27% is utilized by textile industry. Proposed increase of

50 paise per unit with 55% power cut is not justified. Textile industries

have constant power load for 24 hours and hence, there can be a

reduction of Re.1 per unit. Textile industries should be exempted from

tariff hike.

2.10.14 The tariff to the consumers who are receiving uninterrupted power

supply should be increased.

2.10.15 Separate tariff for railway traction may be introduced.

2.10.16 There are no restrictions for LT & LTCT industries whereas HT industries

are subject to the same

2.10.17 The Commission should consider doubling the percentage of incentives

for power factor

19

2.10.18 More rebate equal to 20% surcharge during peak hours for HT industrial

consumers as against 5% in the previous Tariff Order should be

provided

2.10.19 Industries should be permitted to go beyond the fixed base demand and

energy even though ready to buy under open access

2.11 Tariff for HT II A – Educational Institutions and Recognized Hospitals

2.11.1 There should not be any hike to hospitals and educational institutions

under high tension

2.11.2 Military Engineering Services (MES) require a license as per the

provisions of the Act. They purchase power from TNEB and supply power

to its establishments within the premises. They collect normal charges

from defense personnel. They have established transmission and

distribution network and employed man power to maintain the same. MES

require either reduction of tariff or a separate tariff to their services.

2.11.3 Indian Medical Association, Adiparashakti Charitable Trust , Broadcasting

Corporation of India (AIR) have requested for change of tariff from

Commercial to industrial tariff.

2.12 Tariff for HT II B – Place of Public Worship

2.12.1 The HT tariff IIB can be clubbed with HT Tariff II A or demand charges for

HT II B can be increased.

2.13 Tariff for Domestic

2.13.1 The homes like orphanage, home for aged, etc, run on charity should be

classified under domestic category.

2.13.2 The house-owners are charging exorbitant tariff from tenants- it’s a parallel

trading. Electricity charges collected for a rental building may be regulated.

2.13.3 The fixed charges of Rs.10 collected bi-monthly may be revised.

2.13.4 Tariff hike for domestic consumer who consumes more than 200 units bi-

monthly is not justified.

20

2.13.5 An association for non traditional employment for women, an NGO

providing training for under privileged women request to be charged under

domestic tariff. Their expenses are met out of donations from corporate

and philanthropists.

2.13.6 Domestic consumers may be divided into affordable and non-affordable

categories and separate slab may be introduced for non-affordable.

2.13.7 Domestic consumers are given free hand to increase the load. They need

to have limit in their load.

2.13.8 There should be no hike for the bi-monthly consumption between 200 and

500 units.

2.13.9 The tariff hike should be for consumption above 400 units bi-monthly.

2.13.10 Slab from 200 units to 600 units may be changed as 200 to 1000 units

and there should not be any tariff increase upto 1000 units.

2.13.11 Use of power from domestic connection to the shop was hitherto

charged under ‘misuse’ of tariff and compensation charges levied. Now it

is classified as theft of power and compounding charges are levied. This

requires correction.

2.13.12 Domestic consumers should not be made as scapegoat for TNEB giving

free power supply. TNEB should insist the Government to bear the loss.

2.13.13 During February and March, 25% subsidy in domestic tariff should be

provided to help students to prepare for examinations.

2.13.14 Poultry rearing may be charged at domestic tariff.

2.13.15 Domestic tariff should be increased.

2.13.16 A flat rate may be levied for consumption of 600 units and above from

zero units without any slab rate. For orphanages there may be a flat

concessional rate.

2.13.17 Old age homes run on donation and door to door collection may be

charged at flat rate.

2.13.18 A separate slab for consumption of 100 to 400 units may be introduced.

2.13.19 The tariff hike for consumption above 600 units bi-monthly may be 50

paise per unit.

21

2.13.20 Organizations such as Home of Physically Challenged, Employment for

Women, Home for the Aged, Orphanages, charitable trusts, organization

of ex-service men. , organization for rendering free service for terminally

ill patients have requested for levy of domestic tariff.

2.13.21 Places of worship in rural areas have requested to be charged

residential tariff.

2.14 Tariff for Hut

2.14.1 The category name ‘Hut’ can be renamed as ‘BPL’ category, since, the

concept of Hut has vanished.

2.14.2 The load limit to ‘BPL’ category should be increased to 110 watts. Meters

may be fixed and consumption upto 100 units bi-monthly may be free.

Consumption beyond 100 units bi-monthly may be at regular tariff.

2.14.3 Free Hut service connections are being misused. Refrigerators and

washing machines are also used in Hut services as against mandatory

load limit of 40 watts bulb and free colour TV. They may be charged at

Rs.50 per month as they have more appliances.

2.14.4 Huts should be levied minimum tariff

2.15 Tariff for LT Bulk Supply

2.15.1 Railway purchases power at bulk supply tariff and collects charges at

domestic tariff from its employees resulting in loss to tune of Rs.45 Crores

per year.

2.15.2 Manavalakalai Mandrams provide yoga for human excellence and change

of tariff from LT tariff V to LT tariff I C for 68 centres on par with tariff to

Azhiyaru Arivu Tirukkoil.

2.15.3 Organisations such as Aurobindo Society, Rehabilitation Trusts, Working

Womens’ Forum, World Community Service Centre have requested for

Bulk supply tariff

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2.16 Tariff for Street Light and Water Supply

2.16.1 Railway level crossing may be charged at the tariff applicable to street

lights.

2.16.2 Electricity consumed in water supply pump house of Railways for supply of

water to their employee’s quarters, stations and coaches may be charged

at the rate applicable to water supply.

2.16.3 Time limiter / Auto switches on / off may be installed for street lights. The

street lights should be switched on and switched off properly.

2.16.4 Free power supply may be extended to overhead tanks in village

panchayat area for pumping drinking water and Street lights may be

charged at domestic tariff rates.

2.16.5 Ragas Education Society and National Highways Authority of India have

requested for tariff as applicable for public street lighting

2.17 Tariff for LT Educational Institutions, Recognized Hospitals, etc

2.17.1 The proposed tariffs to cinema theatres are lesser than the tariff proposed

for educational institutions.

2.17.2 Educational institutions are paying salary as per the recommendations of

the sixth pay Commission. Why is there a difference between the tariff for

educational institutions under HT and LT categories?

2.17.3 The tariff hike to educational institutions will result in curbing the facilities

such as fans and air conditioners in hostels and colleges which will affect

the students.

2.17.4 The tariff to LT II B should be increased and concession should not be

extended.

2.17.5 Private educational institutions and hospitals may be charged more as

they are run on commercial basis.

2.17.6 ACMEC trust, Melmaruvathur is running free hospital for the poor and

request for concessional tariff.

2.17.7 Organizations such as Indian Medical Centre , Tamilnadu People Welfare

Association, Charitable Hospitals, Naval Unit NCC, Broadcasting

23

Corporation of India – AIR, Cretches and labour recreational facilities in

Planters Association of Tamilnadu , Rural University and Indian Medical

Association have requested for change of tariff under this category

2.18 Tariff for Places of public worship- LT II C

SDP charities, Salem Arivu Thirukoil, Shivaram Trust (Veda patashala &

hostel) have requested for tariff under LT II C.

2.19 Tariff for Cottage Industries

2.19.1 The consumption limit for hike in Tariff for cottage industries should be

increased from 1500 units to 3000 units. The cottage industries reduce

their product prices by 3% to 8% in view of competition from MNC.

2.19.2 Tariff for consumption above 1500 units bi-monthly need not be hiked.

2.19.3 Flour mills should be charged more.

2.19.4 The connected load limit of 10 HP may be increased to 20 HP.

2.19.5 Flour mills, Coffee grinding, etc upto 10 HP earlier classified under LT III A

(1), have subsequently been classified under LT III B. The tariff for this

category upto 10 HP may be restored to LT III A (1).

2.19.6 Mushroom growers having connected load of less than 10 HP may be

given free power on par with agriculture.

2.19.7 Tariff to steam laundries may be changed from LT III B to LT III A (1)

where the connected load is more than 10 HP as the steam laundries

normally require more than 20 HP.

2.19.8 Indian Red Cross Society, Agriculturists of Dharmapuri & Thiruvannamalai

district Owners Association, Local Jetty manufacturers, Steam Laundry

have requested for re classification of tariff under this category.

2.19.9 Flour mills have also requested to revise the monthly minimum charges

into fixed monthly consumption tariff

2.19.10 Various individuals owning flour mills, diesel service stations, Xerox

shops, cable shop have requested for change of tariff category

24

2.20 Tariff for Power Loom

2.20.1 Braided cord manufacturing is a manufacturing process industry where

twisting and winding is done. Earlier this was classified along with power

loom. This category is charged at the tariff applicable to Cottage and tiny

industries (LT Tariff III A (1) since 2003. Only family members are

engaged in this process. The earlier status of Power Looms (LT III A (2))

may be restored retrospectively.

2.20.2 Power looms installed in residential areas cause noise pollution and hence

should not be allowed. Power looms are given free power upto 500 units

and consumption beyond 500 units are charged at Rs.1.40 per unit

whereas domestic consumers are charged at Rs.1.80 per unit which is not

justified.

2.20.3 The limit for free power may be increased from 500 units bi-monthly to

2000 units bi-monthly.

2.20.4 The free units for power loom consumers may be as below:

• For the demand of 5 HP - 500 units

• For the demand of 10 HP - 1000 units

Or

• 50% of units consumed

2.20.5 Braided Cords Association (with recommendation from Tamilnadu

Chamber of Commerce -, Madurai), All District Ice Producers Welfare

Association have requested for change of tariff categorization under this

tariff

2.21 Tariff for LT Industries

2.21.1 The proposed LT industrial tariff is high and the neighbouring states are

charging low tariff and hence, LT industrial tariff should not be increased.

2.21.2 The small scale industries are facing competition from industries in Kerala,

Karnataka, Maharashtra, Punjab, etc, where the power tariff is lesser.

Hence, level playing is difficult. Under economic recession , the tariff hike

will be an additional burden.

25

2.21.3 Micro and small industries in rural feeders get supply for only four hours in

a day rendering it difficult to run the industry. There should not be any tariff

hike to small industries

2.21.4 The Ice factories are catering to the needs of fisherman and their

production depends on the fishing activities. They have to keep the plants

running even when there is no demand for block ice and are paying

electricity charges without revenue. They require a special concession on

par with the other neighbouring states or tariff similar to power looms.

2.21.5 Small nursing homes in Tamil Nadu may be charged on par with the SSI

Industries to encourage young doctors to run hospitals in rural area.

2.21.6 LTCT consumers may also be brought under R & C measures.

2.21.7 Cold storage requires uninterrupted power supply to preserve agricultural

produce. There should not be R & C measures for cold storage. 40 Million

tons of agricultural stock is wasted due to lack of post harvest storage

technology. Cold storage has high cost of operation. Power cost accounts

for 70% to 80% of overheads. There should be no increase in tariff.

Instead subsidy may be provided to cold storage.

2.21.8 Plastic industries involve continuous processing and hence, uninterrupted

power supply is required.

2.21.9 As per MSMED Act, investment limit in plant and machinery for small scale

industry has been increased to Rs.5.00 Crores from Rs.1.00 Crore.

Hence, the maximum connected load limit for LTCT connection may also

be increased from 150 HP to 300 HP.

2.21.10 Salt manufacturing is charged under Industrial tariff. The operation of salt

manufacturing is similar to agriculture operation and concessional tariff

may be extended.

2.21.11 Rice mills are exempted from power cut. The maximum connected load

for LT industries may be enhanced from 112 KW to 200 KW.

2.21.12 Tailoring & Embroidering Units, Water services, ONGC, South India

Hotels & Restaurants Association, Ice factory in Fishing Harbour,

Wireless TT Info Services have requested to be treated on par with

26

other industries and be charged industrial tariff instead of commercial

tariff

2.21.13 TNEB is imposing a surcharge under LT III B of 15% for welding

industry, inspite of the fact that welding machines now are power

efficient due to technology upgradation with a power factor of 0.9.

Hence, the Commission may consider waiver of the 15% surcharge for

welding tariff

2.22 Tariff for LT Agriculture

2.22.1 Agriculture should be charged under concessional tariff.

2.22.2 TNEB shall ensure that the free supply to agriculture is not wasted. The

agricultural pumpsets should be modernized to reduce the consumption.

2.22.3 The ground water levels have gone down due to which the farmers are

compelled to use higher HP motors, capacity of which has increased from

3 HP to 15 HP.

2.22.4 Research institutes of Tamil Nadu Veterinary and Animal Sciences

University are doing research on fodder to cattle. The tariff may be

changed from LT tariff II B to either free power (agriculture) or under LT III

A (1)

2.22.5 ACMEC trust, Melmaruvathur is having agricultural lands and provision of

free power is requested.

2.22.6 Separate rural feeder is required for agricultural service connections.

2.22.7 Sheep, Goat, Cattle, Poultry farming etc is allied to agriculture and these

activities are carried out alongwith agriculture. Penalty is imposed when

water is taken from the free agricultural service to provide to the animals.

2.22.8 Agriculturists grow trees and vegetables which reduce carbon-di-oxide and

thus eligible for carbon credit.

2.22.9 Agricultural subsidy would be more if the actual loads in agricultural

services are assessed and accounted for. Voluntary Disclosure Scheme

may be introduced to regularize the excess load in agricultural service.

2.22.10 Agriculture subsidy should be equal to agricultural energy consumption.

27

2.22.11 Agriculturists rear fish by pumping water from agriculture services and

they are now being fined. Such agricultural service may be charged at

Rs.250 per HP per year. TNEB may get Rs.43.50 Crores per year.

2.22.12 New category for fish culture may be introduced. Fish culture may be

categorized as industry instead of commercial category

2.22.13 Lot of misuse of agriculture power is taking place. The farmers are

pumping water from agricultural wells and are selling water.

2.22.14 Irrigation societies are charged at 50 paise per unit for agricultural

operation. Free electricity may be extended.

2.22.15 Agricultural tariff may be extended to two numbers of bore well

established by ‘Centre for Rural Education and Economic Development

(CREED)’ an NGO established by Indian Council of Agricultural

Research under the network of Krishi Vigyan Kendras (KVK). The KVK

is to foster propagation and cultivation of different economically

beneficial crops and horticultural plants for the demonstration and

distribution to the wider range of small and marginal farmers.

2.22.16 Farmers may be allowed to use free agricultural service for green house.

Agricultural service may be given to all farmers under LT III A (1) at

Rs.1.20 per unit and the service connection may be given within 30 days

without mentioning the classification of crops.

2.22.17 Animal Husbandry, Nilgiris Potato & Vegetable Grower Association, Salt

Manufacturers Corporation, CREED Krishi Vigyan Kendra have

requested for change in tariff to this category

2.23 Tariff for LT Commercial

2.23.1 Commercial consumers who use power upto 400 units should be charged

at the tariff on par with domestic consumers.

2.23.2 The tariff to working women’s forum should not be hiked or subsidy should

be given as the forum is doing social work for poor women and their power

consumption is increased due to computerization of their accounts.

2.23.3 Hotels are providing hospitality services and service industries like hotels

28

should be treated on par with manufacturing industries for the purpose of

tariff.

2.23.4 Health care industries should be given a separate tariff with uniform flat

slab rate or at least on par with the Government hospitals.

2.23.5 For the new nursing homes established in village areas, subsidized tariff

may be extended for the first five years to encourage establishment of

hospital in rural areas. Normal tariff may be levied after five years.

2.23.6 World Community Service centre is a non profitable organization,

providing free yoga and meditation training to various States and Central

Government organizations. They are presently charged under Commercial

tariff and they request concessional tariff.

2.23.7 Ayyappa charitable trust engaged in various humanitarian, medical, social

and civic activities for the poor and downtrodden is presently charged

under Commercial tariff and they request concessional tariff rate with

retrospective effect.

2.23.8 DEAN foundation giving free palliative care to the patients with terminal

diseases, presently charged under commercial tariff requests domestic or

alternative tariff.

2.23.9 Bharat Sevashram Sangha, Rameswaram is a charitable missionary

providing social services during natural calamities – providing water,

boarding and lodging without any charges. The ashram is run on donation.

They were charged under domestic upto 2003 and since 2003 they are

charged at commercial rate. They request normal tariff.

2.23.10 The tariff upto 1500 units bi-monthly may be fixed at Rs.3.00 per unit.

2.23.11 Tariff to cinema theatre is proposed to be revised from Rs.4.40 per unit

to Rs.5.00 per unit whereas the tariff for petty shops is proposed to be

revised from Rs.5.80 per unit to Rs.6.50 per units which are not justified.

2.23.12 Small (petty) traders request tariff on par with domestic or a separate

tariff at Rs.3.00 per unit upto 250 units bi-monthly.

2.23.13 India Medical Center, Kanyakumari has requested for exemption from

tariff increase as it provides free service / treatment to all patients.

29

2.23.14 If private hospitals and nursing homes are charged under LT tariff II B or

HT tariff II A, the hospitals can reduce the health charges to the public.

The SIDCO / SIDBI treat the medical profession as industry.

2.23.15 Presently plantations are being charged at Commercial tariff and it

should be changed to agricultural tariff.

2.23.16 Marriage halls should be asked to pay more for each unit. Hotels should

be charged at Rs.10 per unit.

2.23.17 For use of Neon lights, the tariff may be levied twice the commercial rate.

2.23.18 Reliance Communications, Vodafone Essar Cellular Ltd, Association of

Unified Telecom Service Providers of India Wireless, TT Info Services

Ltd (A subsidiary of Tata Teleservices Ltd), Indus Towers which are

classified under IT industry have requested for industrial tariff.

2.24 Tariff for LT Temporary Supply

2.24.1 This category is not required.

2.24.2 The temporary supply should not include construction activity. The supply

purely on temporary basis may be charged at double the commercial rate.

2.24.3 Electricity consumption for political meeting shall be charged to concerned

political parties and electrical consumption for the temple festivals shall be

charged to the temples concerned.

2.24.4 Separate tariff for lavish illumination may be introduced.

2.25 Free / Concessional Tariff

2.25.1 The following organizations have requested for levy of free / concessional

tariff :

Bone specialty hospitals, Trusts, National Agricultural Foundation, Blind &

Physically Handicapped Trust, Nilgiris Mushroom Growers/ Manufacture

Association , Public charitable Trusts, Nilgiris Bought Leaf Tea

Manufacturers Association, BSNL – for its quarters and group houses,

Madurai Betel Nut Beedi cigarette merchants Association, Coimbatore

District Coolies Weaving Owners Association, Buildings occupied by fair

30

price shops sun by co-operatives, Tamil Nadu Veterinary & Animal

Sciences University, Youth hostel – JV of GoI and GoTN, Agri service

connections for poor farmers in Kanyakumari be changed from

Commercial to free / concessional tariff.

2.25.2 GoTN should consider a subsidy to such hospitals for buying generators

and those hospitals who have generators, diesel should be supplied at

Concessional rate.

2.26 Request for separate category

2.26.1 Military Engineering Services, Rural hospitals, Fish processing industry

and Southern Railway have requested for separate tariff category.

Southern Railway have specially requested for separate tariff for Traction

and Non traction

2.27 TNEB’s Response

2.27.1 The TNEB has to spend around Rs.2000 Crores on metering of

agricultural services.

2.27.2 Domestic users consume 15 million units / day. Individual consumption

has already crossed more than 1000 units, whereas the percapita

consumption envisaged in the 11th Plan is 1000 units only. Last year, the

average cost of supply was Rs.4.70/unit and it is expected to increase to

Rs.4.90 / unit. As on date, the average recovery is Rs.2.60/unit. For every

consumer, the average subsidy is Rs.2.30 / unit. In Tamil Nadu, except

Commercial and Industry, other categories come under subsidized tariff.

Out of 2.09 crores consumers, no hike is proposed for 1.65 crores

consumers. Out of 1.50 crores domestic consumers, there is no hike for

1.40 crores consumers. Hike is proposed for only 10 to 12 lakh domestic

consumers. The average increase is 65 ps. only.

2.27.3 TNEB is also taking steps to curb theft of power. In 2008-09, total recovery

on account of energy theft was Rs.17 crores and for the year 2009-10, it

was Rs.50 crores.

31

2.27.4 Capacity addition to improve the power position in the state requires heavy

investment. TNEB has proposed Rs.3500 Crores for capital investment.

From 2011-12 onwards, 2000 MW of power generation will be added

every year. Rs.3500 Crores have been invested in the last 2-3 years. In

the next few years, Rs.6, 000-8000 Crores will be further invested.

It is expected that the power generation will increase as under:

o 2011-12 : 2,000 MW

o 2012-13 : 2,200 MW

o 2013-14 : 2,500 MW

2.27.5 Line loss is estimated @ 18%. Even if it is assessed, it would not be more

than 19%, whereas at the national level, the line loss is 26%.

2.27.6 There is no proposal to do away with the free power supply to power

looms.

2.27.7 Unmetered consumption is only estimation. For those consumers who

consume 80 to 100 units per month, no tariff increase is proposed. Small

industries are exempted from power tariff increase. The cost of production

is estimated to increase from Rs.4.52/unit to Rs.4.90/unit; the average

recovery is Rs.3.60/unit and the revenue-cost gap is Rs.1.10/unit to

Rs.1.30/unit.

2.27.8 To meet the power shortage of 3000 MW, TNEB is purchasing 2000 MW

to 2200 MW from the market.

2.27.9 Tariff increase is proposed only for those who can afford to pay. TNEB

has requested for marginal increase in tariff to reduce its financial crunch.

2.27.10 On the requests raised by various consumers for change of tariff, TNEB

is of the view that the existing system of change of tariff on a case to

case basis be continued so that field verifications can be done before

according the change of tariff. The common purpose service

connections for change of category may be examined at a later date.

However, requests of all the consumers cannot be considered as it

would be a cause for severe strain on the finances of the Board.

32

2.27.11 Grant of subsidy is the prerogative of the State Government. The extent

of subsidy for various classes of consumers varies and presently, all

categories of consumers are being subsidized. As of now, the TNEB

has not proposed any increase in tariff for the Huts and Agriculture

category.

2.27.12 The TNEB is making increasing attempts to bring down the cost of

power purchase, but fails to do so due to increased demand and

reduced supply of power. Hence, it is constrained to buy expensive

power from the market in order to maintain the supply schedule. It has

now approached the Commission with the tariff proposal which among

other options will also help recover the cost of power purchase. The

TNEB has also tried to reduce cross subsidy by way of not increasing

tariff for most of the categories. . It is to mention that even though the

element of cross subsidy is high, all consumers for every category are

getting subsidized power. It is only the degree of subsidy which varies.

Even now, the TNEB has sought a very little tariff hike

2.27.13 AT & C / T & D losses of TNEB may be in the range of 18%-20% which

is better than the loss levels of some utilities in the country at an average

of 56% and the national average being around 26%. It is to clarify that

the 18% is inclusive of all the losses (including theft etc). However, the

TNEB is taking various steps such as improving collection efficiency,

replacement of defective meters, active participation of the enforcement

wing for reduction of energy thefts, improving the length of HT lines in

Sub transmission, improving the HT: LT ratio in the distribution system,

erection of new sub-stations , segregating feeders, provision of ring

fencing and automatic data logging system among other measures to

reduce these losses. It is expected that the losses will be reduced to

15% in another three years after implementation of such measures

2.27.14 The TNEB is concerned with the increasing demand supply gap in the

state leading to shortfall in power supply. Hence, in order to be self

sufficient, the TNEB is contemplating on adding capacity. The Board

33

envisages a capital expenditure to the tune of Rs 6456 Crores during the

financial year 2010-11. In the coming years, the TNEB will be investing

around Rs 8000 Crores for capacity addition / capital expenditure for

generation alone. The Kudankulam plant is expected to generate 965

MW of which Tamil Nadu’s share is 464 MW. This supply was expected

to commence by June 2010 which has been postponed to September

2010. The only difficulty in the capacity addition program pertains to

equipment supply. The only supplier of necessary equipment is BHEL.

Presently, the focus of BHEL is Delhi, which is the venue for the

Commonwealth games. Hence, the TNEB is informed that the wait for

the equipment would be at least 3-4 years. Hence, the capacity addition

of 600 MW is expected by March 2011 and another 600 MW is expected

by June 2011. The Board is also undertaking refurbishment of its old

generating stations, which would lead to extension of life and

improvement of PLF. This would lead to enhancement of power at lower

cost to the consumer

2.27.15 The TNEB has been making efforts to publicize various methodologies

for energy saving among the general public. It has updated its website

on the various methods of energy savings to be adopted by Domestic,

Agricultural and Industrial consumers. It has also taken steps for

implementation of various DSM projects which are elaborated in the tariff

petition. As regards solar power utilization, the proposal is expensive

leading to high per cost of power. Instead, TNEB is focusing on wind

power which is cheaper source of power.

2.27.16 At present, there is gap in the power availability and power demand. The

gap is around 25-30% which works out to around 2500-3000 MW.

Hence, there necessarily will be power supply restrictions. However,

TNEB is imposing rotational power cuts It is also trying to maintain the

schedule of supply by buying expensive power from the market, which is

not available most of the times due to the high demand from other states

in the country. The state of Tamil Nadu is the one of the largest

34

producers of wind power and it is hoped that wind power would come to

the rescue of the TNEB in tiding over its power crisis to some extent in

the coming months. Hence, it is requested from the general public to

bear with the TNEB for another 1 1/2 – 2 years by which time the power

supply in the state would be comfortable due to the commissioning of

most of the power plants. The Board has also proposed 110 schemes

for implementation of the Restructured Accelerated Power Development

and Reform Program (R-APDRP) to improve consumer satisfaction by

establishing quality, reliable and stable power supply. This will be

achieved by establishing IT based measuring system and strengthening

the Distribution networks aiming at accounting the entire unaccounted

for power.

2.27.17 TNEB acknowledges that metering all the consumers is important to

ensure recovery of the due revenue. Though the TNEB is making all

efforts to meter huts and agriculture connections, it faces stiff opposition

from the same consumers As the complete process of metering the

Agricultural and Hut services is very vast and slow process, TNEB has

requested the Commission for time and the Commission has granted

time for another three years from 01-10-2009 to complete the same.

The Board also has an action plan for speedy replacement of defective

meters. TNEB has been incurring losses since 2003-04. The tariff was

last revised in 2003 and since then the electricity rates in Tamil Nadu

have undergone no change. The mounting losses can be wiped off in a

phas ed manner only by way of creation of Regulatory Asset so as to

avoid tariff shock to the consumers. The practice of creation of

Regulatory Asset has already been implemented in other states. The

TNEB has projected cumulative Regulatory Assets to the tune of Rs

16774.47 Crores (upto 2008-09). This asset would be in the nature of a

deferred expenditure and will be charged as expenditure while

formulating the ARR in the future years

35

2.27.18 The TNEB is actively taking steps to control theft of power. An Anti-theft

squad has been formed which is periodically conducting raids to detect

theft of power. For the previous financial year, around Rs 17 Crores

have been recovered. This year, the recovery has increased to Rs 50

Crores. TNEB is also taking various preventive actions such as

installation of metering point in front of premises, installing electronic

meters , sealing the distribution boxes and bus chambers before the

meters, , detecting thefts through scientific planning of inspections ,

usage of check meters , automatic voice recording system, cash award

scheme to the employees etc. Though theft cannot totally be eliminated,

the TNEB is doing its best for recovery and plugging in the losses.

2.27.19 The TNEB has not proposed any revision in tariff for LT consumers

under I-B ( Hut ), II-A ( Street lights & water works ), II-C ( places of

worship), IIIA(2) (Powerloom weavers), IV ( Agricultural consumers )

and LT consumers who are consuming less . It has also not proposed a

hike for HT II B (places of worship), HT-IV (Lift irrigation), and HT V

(Puducherry). Others are proposed only with a marginal increase

wherein the people who are consuming more power and have the

capacity to pay . Therefore, the TNEB is only able to partially meet its

losses. This is also in line with the government policy that the

consumers who pay the least are given the top most priority. Thus, the

tariff hike is only for 12 lakh consumers in the state. The maximum

increase proposed is Rs 1/- per unit. The existing free supply of power

would also continue and TNEB has not proposed any modification in this

regard.

2.27.20 As per Regulation 5(5)(i) of the Tamil Nadu Electricity Supply Code, rate

of interest on Security Deposit shall be on the basis of the Commission’s

direction. The Commission, in its recent Order of 12-04-2010 has fixed

the rate of interest on the consumer security deposit as 6%. The

Commission has also directed the TNEB to pay interest at 6% on the

36

Security Deposit and Meter Caution Deposit as on 31-03-2011 to be

intimated to the consumers by 30-06-2011.

2.27.21 The TNEB has been sourcing its power purchase from central

generating stations, its own generating stations, private captive

generators, IPPS and from the open market. In this regard, the TNEB is

following the merit order dispatch while making its purchase. However, in

times of acute shortage of power in the state, it is constrained to buy

expensive power. However, in order to tide over purchase of expensive

power, the TNEB has made ambitious plans for capacity addition which

will yield fruit in another 3-4 years.

2.27.22 The TNEB is purchasing coal by executing Fuel Supply Agreement with

Eastern Coal Field and Mahanadi Coal Fields for a period of 30 years

w.e.f 01-04-2009. The price of coal also varies as per notification from

Coal India Ltd. The variation depends on factors such as quality,

moisture content, ash content, volatile matter, useful heat value,

statutory charges etc. Hence, its is TNEB’s intention to buy quality and

cost effective fuel

2.27.23 The TNEB is dependent on its own Wind farms and private generators of

Wind. It is acknowledged that wind comes in as the saviour to the TNEB

in crucial power situations.

2.28 TNEB’s response on the petition for Southern Railway is as follows :

2.28.1 RAILWAY TRACTION

(1) EHT Category to be introduced with a sub category for Railway Traction

under the EHT category. Present Tariff category : HT Tariff I A

At present 90 numbers 110 KV EHT Services and 5 numbers 230 KV EHT

Services are available. The Energy consumption during the FY 2009-10 is

2413 MU and if any sub category of tariff for Railways is allowed, then the

same sub category is to be allowed for all EHT Services. Hence, if

reduced rate of 20 paise is adopted for these 95 nos EHT services, their

37

probable additional impact to the Board will be Rs 120.65 Crores. In

respect of Railways, only the energy consumption during FY 2009-10 is

285 MU and if the reduced rate of 50 paise is adopted for EHT services of

Railways, the probable additional impact to TNEB will be Rs 14.27 Crores.

(2) Demand & Energy charges in Railway Traction tariff is to be fixed at lower

than EHT/HT Industrial consumers on par with the average rate of

realization from the Industrial consumers at EHT/HT

(3) The energy consumption during the FY 2009-10 is 659.89 MU and if the

reduced rate of 50 paise is adopted for the EHT/HT services, the probable

additional impact to the Board will be Rs 32.99 Crores.

2.28.2 Adopt Lag only logic for metering Railway Traction loads

(1) TNEB specifically sought amendment from the Commission to delete the

word ‘lag’ appearing in clause(iii), para 1 of Part 1, High Tension supply

and in Clause(5),Para(9), clause(iii),Para 11 of LT tariff IIIB,V of Chapter

7.17 of tariff order dt.15.3.2003 on Power factor/Low Power factor

surcharge.

(2) As per the original tariff order dt.15.3.2003, the average power factor of

the consumer’s installation shall not be less than 0.90 lag in respect of HT

and .85 lag in LT III B and V with a connected load of 25 HP and above.

Wherever the average power factor is less than the stipulated limit,

compensation charges have to be levied. Wherever power factor exceeds

.95 in HT and .9 in LT, and incentive was given i.e a power factor rebate of

0.5 of the amount of CC charges for every increase of 0.01 in P.F.

(3) The deletion of the word ‘lag’ was sought due to the following reasons:

i) Both capacity VAR and inductive VAR pumped into the system are

detrimental.

ii) On the pretext of incentive, the consumers were over compensating.

iii) Due to the over compensation, utilization of Transformer capacity gets

blocked due to the increase in current; line loss increases.

iv) Also over voltage problems occur in the LT side of D.T.

38

(4) TNERC issued an amendment vide T.O 1-102 dt.22.5.2007 deleting the

word ‘lag’ in the above stated clauses of chapter 7.17. The above order is

applicable for all the consumers.

(5) Further the following are submitted:

(i) M/s. Southern Railways have already filed many petitions before

the Commission and the last of the Review petition has been

dismissed, the details of which are furnished below:

(a) Railways had filed a petition vide M.P No.5/2006 against the

introduction of modified software by the Board to record ‘lead

P.F.’ The Commission in its order dt.2.4.2007 granted 3 years

for introduction of online Dynamic Reactive Power

Compensation equipment in Railway Traction EHT services and

ordered that the Railways will be bound by the Tariff Order

prevailing at that time. The petitioner had sought time stating

that time is required to install necessary equipments to improve

P.F.

(b) During 2009, M/s. Southern Railways filed another petition M.P.

No.3/2009 before TNERC stating that implementation of Order

in M.P. No.5/2006 would cause severe financial strain in

Railways and that dynamic compensation system would

consume much higher power than the existing fixed

compensation system. This petition was dismissed on

29.6.2009. However Railways again filed a Review petition

No.2/2009 for review of the order dt.29.6.2009 in M.P

No.3/2009. This review petition was also dismissed on 1.4.2010

with the observation that merits are not justified.

(6) Contentions of the Board not to consider the request of railways to adopt

Lag only logic

(i) At the outset it is to be stated that railways are to be treated like any

other EHT/HT consumer. No special concession need be granted

39

thus avoiding disparity among consumers.( There are 7122 nos. of

EHT/HT consumers.)

(ii) It may be noted that the Railways have already enjoyed the benefit of

having the metering arrangements to read lead P.F. as unity for a

period of 3 years as per the order in M.P. No.5/2006 dt. 2.4.2007,

while seeking time for installing compensating equipments for online

Dynamic Reactive Power compensation. They have enjoyed a

benefit of Rs.8,00,00,000/- in the form of incentive, and have

successfully evaded penalty for 3 years.

(iii) M/s. Southern Railways is being extended with following facilities in

spite of harmful effects on the Board’s power system.

(a) Supply on two phas es is given which induces imbalance in

the system.

(b) Maximum demand registration is based on 30 minutes

integration whereas other utilities are having 15 minutes

integration. This helps Railways to shift the loads temporarily

during shut down/emergency condition.

(c) No load shedding, no power cut unlike other H.T. Consumers.

(d) Traction load transmits fluctuations and harmonics (18 to 20%)

which are harmful to the system and generators. These are

absorbed by the system of TNEB and no extra charges are

levied for the harmful injections by traction load of Railway.

(e) Proper correction of the harmful effects has to take place at

the consumer end as otherwise the cost involved in such

corrections by the Board will pass on to other consumers.

(f) Therefore request of Railways to adopt ‘lag only’ logic for

metering of Railway traction loads need not be considered.

2.28.3 Excess MD Surcharge be levied only above 120% of the CMD and the

excess MD surcharge be reduced from 200% to 100%

40

(1) As per Regulation 5(2) of the TNERC Supply Code, whenever the

consumer exceeds the sanctioned demand, the exceeded demand alone

shall be charged at double the normal rate. As already stated in the

remarks to the prayer to adopt lag only logic, the maximum demand

registration is based on 30 minutes integration as against 15 minutes

allowed in other utilities. As the above concession has already been

granted, further requests need not be entertained. Also, if concessions are

granted to Railways, many other consumers shall seek special

concessions. The probable revenue impact for 2008-09 : Rs 5.92 Crores

and for the FY 2009-10 : Rs 2.15 Crores

2.28.4 NON TRACTION SERVICES

(1) To extend the subsidized slab tariff benefit by average billing method or to

fix the tariff rate at the proposed subsidized rate applicable for bimonthly

consumption of 200-400 units i.e Rs 2.70/unit for all the Railway quarters

connected under HT points ( HT II A, HT 1A & HT III with sub metering )

and bulk supply points under LT IC

(2) The energy consumption during the FY 2009-10 is 48.09 MU and if the

reduction of 80 paise ( Rs 3.50-Rs 2.70) is adopted for the EHT / HT

services, then loss of revenue to TNEB will be Rs.3.85 Crores Hence, the

existing tariff LT I A may be continued.

2.28.5 HT supply points with major industrial loads ( such as Electric Loco shed,

Diesel Loco shed , CTXR Wagon maintenance shed, Main receiving

station , pump Load station , Lighting load , Staff quarters load ) be

classified under HT Industrial Tariff HT 1 A and to provide sub-metering

facility for charging the Commercial energy separately.

2.28.6 The energy consumption during the FY 2009-10 is 11.08 MU and if the

reduced rate of 150 paise (Rs 5.00-Rs 3.50) is adopted for this EHT

services, then probable impact on revenue of TNEB will be Rs 1.75

Crores. The activities carried out in this non traction HT service are for

41

mixed purpose such as Railway station, residential, commercial etc.

Hence, the existing tariff HT Tariff III may be continued.

2.28.7 HT supply points with major pumping loads be classified under HT II A.

The energy consumption during the FY 2009-10 is 2.18 MU and if the

reduced rate of 3.18 paise ( Rs 6.38-Rs 3.20) is adopted for this EHT

services, then probable impact on revenue of TNEB will be Rs 0.69

Crores.. Hence, the existing tariff HT Tariff III may be continued.

2.28.8 LT supply points for level crossing gates be classified under LT II A. The

energy consumption during the FY 2009-10 is 1.06 MU and if the reduced

rate of 2.20 paise ( Rs 5.90-Rs 3.70) is adopted for this EHT services,

then probable impact on revenue of TNEB will be Rs 0.23 Crores..

Hence, the existing tariff LT Tasriff V may be continued.

2.28.9 SC No 1002 at MRS/Villivakkam be exempted from availing supply at

110 kV or may be permitted to continue at 33 kV as a special case without

any penalty till completion of the codal life of the existing 33 kV

transformers.

2.28.10 The energy consumption during the FY 2009-10 is 67.53 MU and if the

reduced rate of 10 paise ( excess levy collected ) is adopted for this EHT

services, then probable impact on revenue of TNEB will be Rs 0.67

Crores.

2.28.11 The energy consumption during the FY 2009-10 is 7.86 MU and if the

reduced rate of 10 paise ( excess levy collected ) is adopted for this EHT

services, then probable impact to additional revenue of TNEB will be Rs

0.08 Crores

2.29 Commission’s Views on the objections / comments / suggestions

2.29.1 General Issues :

(1) The Commission examined various issues raised by different stakeholders

and the response of the TNEB. These issues were raised in the written

comments received by the Commission as well as highlighted during the

42

hearings held at different locations. The views expressed by the TNEB

are in the form of response to the comments of individual stakeholders

and the response of Chairman, TNEB at the conclusion of hearings in

each location. The Commission would like to make a summary comment

on these issues.

(2) The issue of Transmission and Distribution losses is discussed separately.

(3) The Board has approached the Commission after 7 years for a tariff

revision.

(4) During the 7 years period, the accumulated losses upto 2007-2008 is Rs.

9642.53 Crores based on the audited accounts and Rs. 16774.47 Crores

based on un-audited accounts for the year 2008–2009. Even in the

subsequent years 2009–2010 and 2010-2011, the Board has indicated

losses in each of the years. The analysis on expenditure on individual

item is discussed under respective heading separately in this order.

(5) The major reasons for the loss are shortage of power, exponential growth

of demand and the need for power purchase from the market at high price

coupled with tariff remaining constant for a period of 7 years,

notwithstanding the increase in various input costs. The Commission is

concerned with

a) the accumulated losses upto the current year and

b) the continuing losses during the ensuing period.

(6) The first step should be for reversing the trend and to cut down the losses.

Simultaneously the treatment of accumulated losses needs to be

considered carefully at the time of unbundling of the TNEB. This issue

has also received the attention of the Central Government at the time of

formulation of National Electricity Policy (NEP) under Section 3 of the

Electricity Act, 2003 and finalized in consultation with State Governments.

The NEP stipulates that “ For ensuring financial viability and sustainability,

State Governments would need to restructure the liabilities of the State

Electricity Boards to ensure that the successor companies are not

burdened with past liabilities.” The past burden of the utility should not be

43

passed on to the future consumers as also decided in some of the

judgments of Courts even in the short term. Further, in accordance with

the Government of India’s Tariff Policy, under business as usual

conditions, the opening balances of uncovered gap must be covered

through transition financing arrangement or capital restructuring. The

Commission has also sent a statutory advice to Government of Tamil

Nadu in this regard in their letter dated 04-05-2010. The present

endeavour is to add generation capacity, resort to demand side

management, improve efficiency in operation, so that the trend of losses

be arrested. It is also stated that barring commercial consumers, all other

consumers are paying below costs. At the same time, the Board has

proposed to increase tariff only to certain category of consumers leading

to increase in revenue of Rs.2000 crores leaving a huge gap. The TNEB’s

proposal is to create a Regulatory asset which could be recovered from

the consumers in future. It is to be noted that the regulatory asset is

actually a liability to be recovered from the consumers by the TNEB in

future years. With the continuing deficit of the Board, it is not possible to

amortize the regulatory assets within the next 3 years as stipulated by the

tariff policy. These issues can only be dealt with in the long term and no

short term solutions are available. If they are to be recovered in the short

term, there will be a huge tariff shock to almost all categories of

consumers. The Commission is not aware of the approach of the State

Government, with regard to subsidy as the Government would be deciding

the subsidy after the announcement of tariff by the Commission. The

practice adopted by the neighbouring state of Andhra Pradesh which is

almost similarly placed to Tamil Nadu in respect of the demand served,

energy served and consumer mix etc. is to indicate the stand of the

Government with respect to subsidy in advance. It is seen from the latest

order issued by the APERC that the AP Government gave direction to

APERC under section 108 to maintain uniform tariff across the state and

also considered subsidy to the extent of Rs.3652.81 Crores before the

44

issue of the order and APERC has distributed the subsidy for the 4

Discoms at the time of issuing the order. The TNERC leaves this issue to

the best judgment of the Government of Tamil Nadu for appropriate

action.

(7) As regards demand-supply position, the TNEB has indicated that the

Capacity Addition Programme undertaken by them would start yielding

results from the middle of next year i.e. 2011 with various units at Mettur,

North Chennai and Vallur Thermal Power Projects getting commissioned

and Koodankulam Nuclear Power Project would also bring in about 960

MW of additional power. There are some more projects in the pipe line.

With the commissioning of these power plants, additional capacity will be

available to meet the demand. At that stage, the purchase from the

market upto 2000 MW or about 20 million units per day would come down

and the average power purchase cost will also get reduced accordingly.

That is the stage at which the trend of losses are likely to be reversed.

(8) Almost all categories of consumers are objecting to the tariff hike

proposed by TNEB. It should be noted that the tariff hike proposed by

TNEB is not to recover the entire gap in ARR but only about 20% of the

gap is proposed to be recovered through tariff hike. The balance is

proposed to be deferred to future years and to be shown as regulatory

assets in this tariff order. Some of the consumers have suggested a

modest tariff hike as there has been no tariff hike in 7 years and the input

costs have gone up. The Commission is concerned with the state of

health of the utility. The utility should be healthy enough to serve the

consumers. At the same time attempting to recover the entire revenue

gap in one go would result in a huge tariff increase for all consumers and

may not be a viable option. The Commission has to take a balanced view

with regard to tariff hike. If the utility had been filing tariff petitions at

regular intervals, there could have been modest tariff increase year after

year avoiding the need for a huge hike in one year. The Commission

45

hopes that with this experience, the Board and its successor entities would

file tariff petitions at regular intervals in future.

2.29.2 Quality of Supply:

(1) The concern expressed by various consumers with regard to the quality of

supply is very relevant. The Commission has already notified the

Performance Standards and Regulations, which stipulate the quality of

supply levels to be maintained by the Utility. While overall standards may

be maintained by the Utility, it is quite possible that some chronic

problems may exist in the system.

(2) The common problems expressed by the consumers include low voltage,

overloading and burning of transformers, cable failures, load shedding etc.

While load shedding is directly related to the availability of power and the

ability of TNEB to purchase power at high cost, the other issues are

technical in nature and will need investment in improving last mile

connectivity.

(3) The distribution planning to be done by the TNEB, duly taking into account

the requirements of Supply Code, Distribution Code etc. would go a long

way in improving the quality of supply.

(4) The Commission believes that TNEB has its own in-house guidelines with

regard to operation and maintenance of distribution system. Adequate

transformation ratio will have to be created depending on the requirement.

HT/LT ratio needs to be improved.

(5) The distribution transformers are to be metered to get the profile of the

voltage, down time as well as the energy. Normally load on transformers

should be limited to the extent of 80% of the rated capacity to prevent

failures etc.

(6) The cables should be properly selected to prevent overloading and

frequent failures. The voltage at the tail end needs to be monitored at

regular intervals. Proactive action on the part of TNEB will go a long way

in reducing the consumers’ complaints and improving their satisfaction.

46

(7) Erection procedure and safety requirements as per section 53 of

Electricity Act, 2003 should be followed in letter and spirit.

(8) As far as consumers are concerned, these complaints could be taken up

with the Utility directly and in the absence of corrective action by TNEB,

the issue could be taken up with the Consumer Grievance Redressal

Forum (CGRF) for Redressal of grievances. In case the consumer is not

satisfied with the Order of CGRF, an appeal could be preferred to the

Ombudsman. The Regulations relating to CGRF and Ombudsman could

be referred from the website of the Commission.

2.29.3 Metering and Energy Audit :

(1) Section 55 of the Electricity Act envisages that all connections shall be

energised through a correct meter. The relationship between Utility and

the Consumer is through the meter. The specification of the meters has

already been laid down by Regulation by the Central Electricity Authority

(CEA) in accordance with the Act. A time bound programme for 100%

metering needs to be worked out by TNEB and submitted to the

Commission. This shall be done within six months of the issue of this

Order.

(2) It is also necessary to meter all the feeders and the distribution

transformers and the meters shall have the facility for remote reading.

Appropriate technology needs to be selected and SCADA / data

management system needs to be established. Such an arrangement will

enable carrying out of Energy Audit and will also facilitate Demand Side

Management (DSM). In the interim period, the TNEB is directed to submit

the programme for carrying out the Study for Assessment of Transmission

and Distribution (T&D) losses. This will help in properly assessing the

power purchase to be allowed for an estimated sales projection.

(3) The Regulation issued by the CEA envisages installation of Static Meters

for all consumers. The Static Meters will help in reduction of tampering,

47

identifying various parameters, downloading of data, introduction of time of

the day tariff etc. besides reducing billing errors.

(4) It is also necessary to install Availability Based Tariff (ABT) compliant

meters for the purpose of measurement of real power and reactive power

at interface points in intervals of 15 minutes. The ABT compliant meters

are essential for the purpose of proper grid management, sending

commercial signals for ramping up / backing down of generations and

increase / decrease of load.

2.29.4 Cost of Supply :

(1) The Cost of Supply depends on the power purchase cost and the

distribution cost. Currently, the power purchase cost of TNEB consists of

power purchased from regulated entities namely Central Public Sector

Undertakings like NTPC etc., TNEB’s own generating stations and

bilateral power purchase through traders and through power exchange.

The more the regulated power, the lower the average power purchase

cost. With the commissioning of new power stations, power purchase

from open market will gradually be reduced and more and more regulated

power will be available to TNEB.

(2) The National Tariff Policy (NTP) envisages that the tariff for consumers

should be within + 20% of the average cost of supply. It can be seen from

the Tariff Schedule that most of the consumers pay tariff within this range

except for huts and agricultural consumers. A proper view of tariffs for

these categories can be taken only when their actual consumption is

known. Even after ascertaining the consumption and setting up of the

tariff on realistic basis, if the policy of free power is to be continued, the

same may have to be provided by the Government by way of subsidy.

The same logic is true for domestic consumers who are subsidised at

present. As already stated, in the long run, a healthy electricity utility is

necessary for serving the interests of the consumers.

48

2.29.5 Generation / Power Purchase :

(1) Normative parameters are fixed by the Commission for various power

stations owned by the TNEB. Based on the details furnished by the

TNEB, the Commission had relaxed the Station Heat Rate (SHR) and

auxiliary (AUX) consumption for some of the power stations. The

Commission observes that the procurement of domestic coal and imported

coal is based on the coal linkages provided for these power stations and

also the necessity for importing coal as prescribed by the Central

Government to meet the shortages.

(2) It should be noted that the State has a huge installed capacity of about

5000 MWs of wind turbines, mostly owned by the private generators.

These Wind Energy Generators (WEG) operate in two ways : while some

of them supply power directly to the TNEB, others have banking and

wheeling arrangement with the TNEB for their captive use. Separate

Orders of the Commission govern these transactions. The power

purchase by TNEB is decided by the Commission in this Order

commensurate with the estimated sales forecast and the estimated

Transmission and Distribution (T&D) losses.

(3) After accounting for the power availability from the Central Public Sector

Undertakings, TNEB’s own generating plants, IPPs in Tamil Nadu, wind

generators, captive power plants etc., the additional power requirement

arising out of mismatch in demand and supply is being allowed by way of

bilateral trade, drawal from the grid through UI mechanism as per orders

of CERC etc. The surplus power available with the TNEB is accounted for

as bilateral sale / supply to the grid through UI mechanism.

2.29.6 Tariff categorization

Tariff categorization is dealt with in the tariff schedule.

49

2.29.7 Demand Side Management:-

(1) To meet the demand-supply position in the short term, the Demand Side

Management (DSM) is an effective tool.

(2) It is also a cheaper option as compared to capacity addition.

(3) It further enables in reducing Carbon emission and also defers investment

to subsequent years.

(4) The importance of Energy Conservation and Demand Side Management

is well understood by the utility as well as the consumers.

(5) The National Electricity Policy envisages that adoption of energy efficiency

and Demand Side Management would lead to potential energy savings.

(6) It is necessary to create awareness among users for promoting Energy

Conservation and Demand Side Management.

(7) Efficiency improvements need to be carried out in all sectors viz.

domestic, agriculture and industry.

(8) While industry is expected to adopt quickly to Energy Conservation and

Demand Side Management, the domestic and agricultural sector needs to

be motivated to adopt these measures.

(9) Awareness has to be created for using Star Labelled appliances which

may cost more but would pay back by way of energy savings.

(10) The Commission is of the view that the utility should direct the field staff

to create such awareness among the consumers.

(11) The Government of Tamil Nadu has notified the Chief Electrical

Inspector of Government of Tamil Nadu as a nodal agency for Energy

Conservation. The functions of the Electrical Inspectorate are different

in nature.

(12) Instead, the Tamil Nadu Electricity Development Agency (TEDA) could

be designated as nodal agency for the purpose of Energy Conservation,

who can work in tandem with TNEB for effectively implementing Energy

Conservation and Demand Side Management.

(13) Use of CFLs needs to be increased with adequate arrangement for

disposal of the unserviceable CFLs.

50

(14) Awareness programmes could be conducted in various schools on a

regular basis for inculcating Energy Conservation among children.

(15) As regards agricultural sector, usage of the pumpsets needs to be more

efficient and the entire pumping including the piping needs to be

designed in such a way that energy spent in pumping is minimized.

(16) Sprinkler Irrigation System on which extensive research is being done all

over the world including India could be adopted for the purpose of

irrigation. This may help in conserving both electricity and water.

(17) As far as the industrial sector is concerned, it may be appropriate to

conduct energy audits in individual units and approved ESCOs could be

inducted for conducting such energy audits and improvements in the

processing industry could be undertaken through different models

available.

(18) The investment for efficiency improvement could be done by the industry

itself depending upon the economics or alternative mechanisms are

available wherein ESCOs may invest and improve the efficiency and

recover the cost incurred through the savings in electricity bills.

(19) Promotional effects are required to be done by the utility to motivate the

end-users of electricity to carry out such studies and improvements.

(20) The Commission would not hesitate in granting adequate funds for such

purpose if a proposal is received from TNEB.

(21) Provisionally, the Commission allows Rs.10 Crores in this ARR for the

purpose of carrying out the activities of Energy Conservation and

Demand Side Management.

2.30 Commission’s Suggestions

2.30.1 CREATION OF A REGULATORY CELL IN TNEB

(1) TNEB is a major utility handling more than 10,000 MW of power and

supplying over 200 million units of electricity per day. It has to take an

active part in various proceedings before the Central Electricity

Regulatory Commission (CERC) with regard to power purchase from

51

Central Sector Utilities as well as in the fixing of transmission service

charges in respect of Power Grid Corporation of India Limited (PGCIL).

TNEB is also required to interface with the TNERC right from the stage of

regulation, tariff petition, dispute resolution petitions and other

miscellaneous petitions involving disputes between the licensee and

generating companies. There are a large number of wind energy

generators and captive power plants. They are also consumers of the

TNEB. To effectively project the view points of the TNEB before the

TNERC and CERC, this Commission is of the opinion that creation of a

Regulatory Cell within TNEB and imparting proper training to those

officials will be to the best advantage of the Board. As and when the

TNEB is unbundled such a Regulatory Cell may have to be created in

both the TANGEDCO and TANTRANSCO. Almost all the utilities in India

starting from NTPC, PGCIL and various Electricity Boards and their

successor entities after unbundling have established a Regulatory Cell in

their organisations. The TNEB and their successor entities are advised to

take appropriate action to create such a Regulatory Cell. The

Commission may be informed of action taken within a period of six

months.

2.30.2 AGRICULTURE

(1) The Commission in the Tariff Order of 2003 has prescribed a tariff of

Rs.250 per HP per annum for agricultural connections. Wherever the

agricultural supply is metered, the applicable tariff is 20 paise per kWh.

Besides the LT agricultural connection, the TNEB has also provided

service connection to a group of farmers for the purpose of lift irrigation,

the tariff for which was fixed at 50 paise per kWh. The Government

extended supply of free power to all agriculturists and accordingly granted

subsidy in respect of all agricultural connections at LT level. However,

consumers at HT level were not provided with subsidy. This was the

subject matter of a Writ Petition CMA No. 931/2004 which was

52

remanded to the Commission by the High Court of Madras. Since the

Commission has fixed tariff to all the agricultural consumers below the

cost for LT and HT consumers, the Commission did not provide any relief

to the HT consumers for the back period. Agricultural consumers provided

with HT connection were advised to approach the Government for

subsidy. It is understood that there are only 11 such cooperative sangams

which receive HT supply for Lift Irrigation.

(2) During the hearing in various centres, a view was expressed by a group

of agricultural consumers that earlier water was being supplied free of cost

through irrigation canals. However most of the agriculturists now depend

on well irrigation and water level having gone down, electricity should be

provided free of cost for pumping water, akin to water being made

available free. The Commission observes that in some of the States like

Maharashtra, Water Regulatory Authority has already been set up and

regulations are being made by them for efficient use of water including

pricing of the same for various applications. A view was also expressed

that the subsidy provided for electricity consumers is around 2% of the

Budget in Tamil Nadu and there should be no objection in raising the

subsidy to 4% or 5% of the Budget.

(3) The Commission has been advocating measuring of electricity supplied to

various consumers. In fact, Section 55 of the Electricity Act envisages

supply of electricity through correct meters. The specification of the

meters has already been laid down by the Central Electricity Authority

way back in May 2006. Extension of time was sought from the

Commission for providing meters for all service connections which has

been granted for a period of 3 years from 2009. The Commission has

also directed the TNEB to install meters on all feeders so that energy audit

could be conducted. Besides, an estimate of the agricultural consumption

was also to be made by a scientific process. The TNEB has indicated in

its petition that an expert was appointed and he has conducted some

studies and submitted a report which is known as Raheja Report. Time

53

and again it has been reported that they had difficulty in “Run time error”

and accordingly the matter did not progress further. The Commission is

unable to accept this explanation of Run time error. Sincere efforts should

have been made to assess the energy supply in various feeders and the

same should have been compared with the energy for which revenue has

been realized and to work out the transmission and distribution losses as

well as commercial losses separately. This has not happened. In the

absence of such an exercise, all unmetered consumption as well as the

losses are estimated based on certain assumptions. Until and unless the

assumptions are clearly validated by a third party, the Commission finds it

difficult to accept the figures furnished by the Petitioner. It should also be

noted that a wrong estimation of AT&C losses would underestimate the

power purchase requirement and the fallacy of such an estimate would be

seen at the end of the year, when the actual power purchase is more than

the estimated power purchase. It will be relevant to refer to Government of

India’s Tariff Policy with regard to power purchase which is extracted

below.

“8.2.1 The following aspects would need to be considered in determining

tariffs:-

(1) All power purchase costs need to be considered legitimate unless it is

established that the merit order principle has been violated or power has

been purchased at unreasonable rates. The reduction of Aggregate

Technical & Commercial (ATC) losses needs to be brought about but not

by denying revenues required for power purchase for 24 hours supply and

necessary and reasonable O & M and investment for system upgradation.

Consumers, particularly those who are ready to pay a tariff which reflects

efficient costs have the right to get uninterrupted 24 hours supply of quality

power. Actual level of retail sales should be grossed up by normative

level of T & D losses as indicated in MYT trajectory for allowing power

purchase cost subject to justifiable power purchase mix variation (for

example, more energy may be purchased from thermal generation in the

54

event of poor rainfall) and fuel surcharge adjustment as per regulations of

the SERC.”

(4) From the above it could be seen that the actual level of retail sale needs to

be grossed up by normative level of T & D losses for allowing power

purchase costs. It is therefore necessary to properly estimate the AT & C

as well as T & D losses. Till such time 100% metering is done and AT&C /

T&D losses are calculated based on actual meter reading, the

Commission directs that the TNEB shall carry out an exercise to arrive at

proper estimate of AT & C and T & D losses within a period of six months.

(5) Now coming back to the consumption in case of unmetered connections,

till such time meters are installed for the purpose of carrying out estimate,

feeder metering becomes important. It has been reported by TNEB that

all feeder meters have been installed. The data shall be collected from all

Feeders/Distribution transformers and energy audit shall be carried out at

various voltage levels to properly estimate the transmission losses and the

distribution losses which will also be necessary to establish proper bench

mark for the transmission loss and distribution loss separately. For the

present tariff exercise, the Commission is guided by the normative AT &

C loss level prescribed. The TNEB in their petition have indicated a

constant AT & C loss of 18%. They explain that the loss level is

maintained at 18% in view of the fact that they are undertaking huge

electrification work and also there is an increase in the number of

consumers. This needs to be duly supported by data. This is precisely

the reason why the Commission is suggesting installation of meters in all

feeders/distribution transformers and carrying out energy audit. This

exercise, if done before the tariff exercise will facilitate proper estimation

of AT & C and T & D and will also facilitate providing necessary

allowances for the same and also to allow power purchase cost covering

all reasonable expenses.

55

(6) The figures furnished by the TNEB for 2009-10 indicate that the total

energy injected into the grid was 69,144 MU. After providing for

transmission and distribution loss at 18%, the energy available for sale

was 56,698 MU. The energy consumed by sectors other than agriculture

was 44,780 MU. By elimination, the energy consumed by the agriculture

sector should be 11,918 MU. The average cost of supply of the Board

during 2009-10 was Rs.4.89 per unit. Therefore, the realisation from the

agriculture sector should have been Rs.5,828 crores, against which the

subsidy received from the Government for 2009-10 was Rs.267 crores.

(7) In the absence of metering of agricultural consumption it has not been

possible to determine the consumption in each service connection. The

total capacity of agricultural connection indicated by the TNEB is 1.07

crores HP. This is a gross under estimation. Suffice to say that the subsidy

towards agricultural consumption determined on the basis of the capacity

indicated by the TNEB is vastly inadequate to cover the actual expenditure

incurred by the TNEB. The gap between the expenditure incurred by the

TNEB and the subsidy paid by the Government is vastly responsible for

the poor financial health of the TNEB. This is a matter which the

Government and the TNEB should sort out for restoring the financial

health of the TNEB. It is pertinent to note that the Government of Andhra

Pradesh offered a subsidy of Rs.2146 crores for the agricultural sector

during 2009-10 against the total subsidy of Rs.3486 crores paid to the

utilities.

(8) It is seen from the latest tariff order of APERC issued on 22-7-2010 that

the Government of Andhra Pradesh have committed to provide total

subsidy to the extent of Rs.3652 crores under Sec.65 of the Electricity Act

2003. Andhra Pradesh and Tamil Nadu are identically placed with regard

to the demand for power and energy, consumer mix etc.

(9) In the absence of metering of agricultural consumers , it is necessary for

the TNEB to measure their actual load and consumption so that higher

subsidy is available to TNEB.

56

2.30.3 Employees cost – Terminal benefits

(1) The tariff petition filed by TNEB includes terminal benefits for the control

period besides salary, allowances etc. The Commission addressed TNEB

in August 2008 (Ref. No.D.1208/08, dated 25-08-2008) regarding payment

of pension and gratuity. The Commission observed that while pension

contribution was nominal, pension payments were phenomenal and the

deficits were met from the revenue. Similar was the case with regard to

gratuity payment. The Commission observed in that letter that pension

and gratuity payment to the extent of Rs.1000 crores per annum is paid on

due basis instead of creating adequate reserve for the same. The

Commission directed the TNEB to conduct a study and assess the

probable amount of pension liability and submit a report at an early date.

The Commission has not received any response from the TNEB in the

matter so far.

(2) The terminal benefits indicated for various years of the control period by

the TNEB is as follows:

2010 – 11 - Rs. 1209.98 crores

2011 – 12 - Rs. 1258.37 crores

2012 -- 13 - Rs. 1308.71 crores

(3) The terminal benefits account for almost 40% of the employee’s

expenses. This needs to be examined in the context of regulatory

practices to be adopted.

(a) Charging of terminal benefits in tariff will result in present cost being

passed on to the future consumers.

(b) In most cases a Corpus is created for meeting the terminal benefits of

employees. The corpus should have adequate balance so that it will

be able to meet the requirements of terminal benefits of employees.

For this purpose an actuarial study may have to be carried out to

57

decide the amount to be credited in the corpus so that the quantum of

fund requirement for the corpus maybe arrived at properly. The

Commission would also like to be guided by the Transfer Scheme to

be issued by Government of Tamil Nadu on unbundling of the TNEB.

The TNEB is directed to examine this issue and submit a proposal for

the same to the Commission. This exercise should be carried out

within a period of six months.

58

CHAPTER 3

ENERGY REQUIREMENT

3.1 Sales Forecast

3.1.1 Regulation 71 (Sales Forecast) of Tariff Regulation stipulates the

following:

(i) The accurate projection of category-wise sales is very essential for the

assessment of energy input requirement so as to determine the quantum

of generation and quantum of energy to be purchased for the correct

assessment of revenue requirement for generation and power purchase.

(ii) The TNEB, Distribution Licensee shall formulate long-term demand

forecast as stipulated in sub-clause (4) of clause 6 of The Distribution

Code and get the forecast approved by the Commission.

(iii) The Licensee may adopt a suitable methodology like CAGR to arrive at

the category-wise sales for the Base Year i.e. for the Current Year.

(iv) The Licensee shall forecast demand and sale of electricity for different

categories of consumer in his area of supply for ensuing year, and for a

period of three years taking into account the long term demand forecast

already approved and also subsequent changes in situation, if any.

(v) The Commission shall examine the forecast for reasonableness based on

growth in number of consumers and consumption of electricity in the

previous years and anticipated growth in the next year and any other

factor that the Commission may consider relevant and approve sale of

electricity to consumers with such modification as deemed fit.

3.1.2 The TNEB submitted on 25 -08-2005, Load and Demand forecast for the

period from 2005-06 to 2011-12 and for 2016-17 (end of 12th Plan) and

2021-22 (end of 13th Plan period) based on CAGR for nine years previous

to 2005-06 to comply with the provisions in the Tamil Nadu Electricity

Distribution Code. The TNEB had not furnished load and demand forecast

subsequently taking into account the subsequent changes in the

consumption pattern etc., prior to filing the petition.

59

3.1.3 The category-wise Energy and Demand Projections for 2007-08 to 2011-

12 furnished by TNEB based on CAGR for 9 years from 1995-96 to 2004-

05 were as below :

Table – 2: Demand and energy forecast by TNEB upto 2011-12

Tariff Category 2007-08 2008-09 2009-10 2010-11 2011-12

High Tension Sales

MU

%

increa

se

Sales

MU

%

increa

se

Sales

MU

%

increa

se

Sales

MU

%

increa

se

Sales

MU

%

increa

se

I-A Inds. Incl. Rly.

Traction

11685 3.20 12060 3.21 12446 3.20 12844 3.20 13256 3.21

II-A

Rec. Edu. Inst., Public

Worship etc.

769 6.81 821 6.76 877 6.82 937 6.84 1001 6.83

III Commercial and

others

1038 2.17 1060 2.12 1083 2.17 1106 2.12 1129 2.08

IV Lift Irrigation Societies 0 0 0 0 0

V Puducherry 427 6.75 456 6.79 486 6.58 518 6.58 553 6.76

HT Total 13919 3.42 14397

3.43 14892

3.44 15405 3.44 15939 3.46

Low Tension

I-A Domestic (and

Notified tariff from 03-

04)

12921 10.12 14228 10.12 15668 10.12 17253 10.12 18998 10.11

I-B Huts 231 8.45 251 8.66 273 8.76 297 8.79 323 8.75

II-A Street Lights & Water

Supply

1467 8.99 1598 8.93 1741 8.95 1897 8.96 2067 8.96

II-B Rec. Edu. Inst., Public

Worship etc.

381 7.02 408 7.09 436 6.86 467 7.11 500 7.07

III-A(1) Cottage Industries 340 12.96 383 12.65 433 13.05 488 12.7 551 12.91

III-A(2) Power Looms 984 12.84 1111 12.91 1254 12.87 1416 12.92 1598 12.85

III-B Industries 4389 6.01 4652 5.99 4932 6.02 5228 6 5542 6.01

IV Agriculture and HT Lift

Irrigation

11425 4.64 11955 4.64 12511 4.65 13092 4.64 13700 4.64

V Commercial and

Others

3252 5.93 3444 5.90 3648 5.92 3864 5.92 4093 5.93

LT Total 35390 7.41 38030 7.46 40896 7.53 44002 7.59 47372 7.66

Total 49309 6.25 52427 6.32 55788 6.41 59407 6.49 63311 6.57

3.1.4 The TNEB in para 1.2 of the Petition have stated that the energy

requirement of the State has been growing at a rate of 8-10% every year

3.1.5 The TNEB has made the following consumer category wise demand sales

projections in the ARR:

60

Table – 3 : Demand sales projections by TNEB up to 2012-13

Tariff Category 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

High Tension Sales MU

% increase

Sales MU

% increase

Sales MU

% increase

Sales MU

% increase

Sales MU

% increase

Sales MU

% increase

I-A Inds. Incl. Rly. Traction

15434 11.20 14247 -7.69 16562 16.25 17942 8.33 19438 8.34 21058 8.33

II-A Rec. Edu. Inst. 872 6.99 885 1.49 936 5.76 998 6.62 1064 6.61 1135 6.67

II-B Public Worship etc. 2 0 3 50.00 4 33.33 4 0.00 4 0.00 4 0.00

III Commercial and others

1408 14.38 1431 1.63 1514 5.80 1671 10.37 1844 10.35 2034 10.30

IV Lift Irrigation Societies

9 28.57 9 0.00 11 22.22 12 9.09 14 16.67 15 7.14

V Supply to Puducherry

393 5.93 373 -5.09 420 12.60 445 5.95 471 5.84 499 5.94

Supply to other states

210 193 -8.10 0 -100.00

0 0 455

HT Total 18328 8.89 17141 -6.48 19447 13.45 21072 8.36 22835 8.37 25200 10.36

Low Tension

I-A Domestic (and Notified tariff from 03-04)

12575 4.50 13387 6.46 13709 2.41 14524 5.94 15578 7.26 16309 4.69

I-B Huts 190 2.70 195 2.63 216 10.77 229 6.02 243 6.11 258 6.17

I-C Bulk Supply 3 0 12 300.00 3 -75.00 4 33.33 5 25.00 6 20.00

II-A Public Lighting & Water Supply

973 -24.86 1213 24.67 1043 -14.01 1077 3.26 1111 3.16 1147 3.24

II-B Rec. Education Inst. Etc.

335 6.69 595 77.61 357 -40.00 471 31.93 620 31.63 817 31.77

II-C Places of Public Worship

68 13.33 115 69.12 74 -35.65 78 5.41 83 6.41 88 6.02

III-A(1) Cottage and Tiny Industries

264 1.54 610 131.06 284 -53.44 416 46.48 610 46.63 895 46.72

III-A(2) Power Looms 672 4.51 799 18.90 720 -9.89 749 4.03 779 4.01 811 4.11

III-B Industries 4585 2.94 3800 -17.12 4924 29.58 4912 -0.24 4902 -0.20 4893 -0.18

IV Agriculture 11107 4.77 11499 3.53 11918 3.64 12870 7.99 14116 9.68 15245 8.00

V Commercial and Others

3720 7.30 3660 -1.61 3992 9.07 4329 8.44 4695 8.45 5092 8.46

Temporary supply 11 0 39 254.55 11 -71.79 19 72.73 33 73.68 56 69.70

LT Total 34503 3.53 35924 4.12 37251 3.69 39679 6.52 42775 7.80 45617 6.64

Total 52831 5.33 53065 0.44 56698 6.85 60751 7.15 65610 8.00 70817 7.94

3.1.6 The total demand projection furnished by TNEB in 2005 and sales

projection now furnished in the Tariff petition are compared with the total

consumption as per the forecast in 17th Electric Power Survey are as

below:

Table – 4 Comparison of demand projection by TNEB with 17th Electric Power

Survey projection

Sl.No.

Year Demand forecast furnished in 2005 (in MU)

Projection in Tariff petition (in MU)

Total consumption as per 17th EPS (in MU)

1 2007-08 49309 52831 50898

2 2008-09 52427 53065 55536

3 2009-10 55788 56698 60762

4 2010-11 59407 60751 66786

5 2011-12 63311 65610 73703

6 2012-13 70817

61

3.1.7 The forecast in the 17th power survey is on the higher side.

3.1.8 The TNEB has stated the following in the tariff petition:

“The load forecast takes into account underlying economic growth and

other forces that affect electricity consumption in the major categories of

load. An attempt has been made to refine the forecasts in the wake of

economic outlook for the state and check that they are consistent with the

likely movements of the principle macroeconomic parameters of demand.

The basic parameters underlying load forecast are:-

• Sales data up to FY 2008 has been used for analysis

• Managing agricultural demand, and

• Rationalisation of tariffs which include incentive structure for HT

consumers, increase in tariffs at inflationary level for subsidizing

categories and increase in tariffs for subsidized categories including

agriculture.

3.1.9 However, it is seen from the projection and the tariff proposed that the

above parameters have not been adopted.

3.1.10 The TNEB has furnished the following reply to the Commission’s

observation that the demand and energy forecast have not been

supported with any detailed report to indicate the methodology, CAGR,

comparison with national level forecast under power survey etc.,

“1. The demand and energy forecast of HT and LT services (various tariff)

have been arrived at in respect of 2010-11, 2011-12 and 2012-13 based

on the average growth, rate of consumptions as recorded in earlier years

namely 2006-07, 2007-08 and 2008-09. The average growth rate adopted

in respect of HT and LT are furnished below:

HT category Percentage

IA 8.33

II A 6.66

III 10.35

IV 9.52

V 5.96

62

In respect of LT average growth rate for IA , II A , II B, IIIA-1, III A – 2, V

and VI are 6.60%,3.20%.31.70%,46.60%, 4.00%,8.40% and 70.70% and

these have been adopted.

2. Demand and energy forecast for 2009-10 have been arrived at based

on the proportionate consumption made in 2007-08 only since it is in R &

C period

In case of category I B and IIC growth rate of 6% has been adopted

3.1.11 Perusal of the sales projection show the following:

(i) The sales for 2007-08 have been taken as per audited accounts and for

2008-09 as per preliminary annual accounts. There is an overall growth of

0.44% only from 2007-08. There is negative growth in the consumption by

industrial consumers both HT and LT. However the sales for 2009-10 has

been adopted at a level nearer to the level as adopted for BE 2009-10,

with an increase of 16.25% for HT industrial consumers and 29.58% for

LT consumers. The TNEB has stated that the sale for 2009-10 has been

arrived at in proportion to the sales in 2007-08 (without R & C measures).

The overall growth for ensuing years are as follows:

a). 2010-11 - 7.15% over 2009-10

b). 2011-12 - 8.00% over 2010-11

c). 2012-13 - 7.94% over 2011-12

(ii) As per Regulation 71 (5) of TNERC Tariff Regulation, the Commission

shall examine the forecast for reasonableness based on growth in number

of consumers and consumption of electricity in previous years. The details

of consumers and consumption from 2003-04 were examined and it is

seen that growth both in the number of consumers and consumption are

not uniform. The percentage of increase in number of consumers and

sales from 2003-04 (since previous tariff revision) to 2008-09 were as

below:

63

Table – 5 Percentage of increase in number of consumers and sales from 2003-04 to 2008-09

(Year to year percentage increase / decrease)

Sl.

No.

Consumer

category

Tariff 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Consu

mer

Sales Consu

mer

Sales Consu

mer

Sales Consu

mer

Sales Consu

mer

Sale

s

Cons

umer

Sales

I HT

1. Industries IA 0.23 7.90 8.40 15.95 0.39 7.40 15.83 21.50 6.37 11.2

0

4.04 -7.69

2 Recog. Edu.

Institutions

II A 13.26 14.41 6.32 19.36 2.32 15.12 3.54 11.49 1.64 6.99 1.35 1.49

3 Public Lighting II B 50 0 0 0 0 0 33.33 0 00 0 25 50

4 Commercial III -5.04 -19.74 2.80 7.10 2.27 9.18 1.24 15.05 9.98 14.3

8

6.45 1.63

5 Lift Irrigation IV 9.09 -33.33 0 16.67 0 0 0 28.57 0 0 0 0

II LT

1 Domestic IA 7.31 9.98 2.48 -0.45 4.49 14.23 8.14 8.89 6.00 4.50 0.45 6.46

2 Huts I B -30.29 4.22 0.97 4.05 3.93 1.11 2.70 1.65 6.33 2.70 7.48 2.63

3 Bulk Supply I C 14.69 0 18.47 0 4.99 50 25.94 0 -9.12 300

4 Public Lighting II A 2.25 4.05 3 5 2.93 3.97 7.47 9.84 20.50 -24.8 0.18 24.66

5 Recog. Edu.

Institutions

II B -0.39 -10.86 1.66 11.34 -22.56 6.79 -1 10.95 0.31 6.69 3.21 77.61

6 Public

Worship

II C 63.05 158.8

2

17.86 4.55 0.69 6.52 106.0

8

22.45 8.56 13.3

3

15.0

2

69.12

7 Cottage &

Tiny Industries

III A

(1)

30.10 14.36 5.17 9.77 -15.72 2.54 3.55 7.44 7.95 1.54 10.9

5

131.08

8 Power Loom III A

(2)

34.84 17.75 15.36 7.94 26.55 8.86 19.44 -

11.31

4.23 4.48 0.50 18.94

9 Industries III B 2.84 3.25 0.18 9.17 -8.70 2.91 0.97 13.59 3.34 2.94 2.58 -17.12

10 Agriculture IV 1.58 6.22 2.02 1.83 1.79 0.41 3.22 8.21 1.58 4.77 1.67 3.53

11 Commercial V 5.29 5.60 6.83 8.94 6.53 2.95 4.88 19.68 5.25 7.30 6.54 -1.61

(iii) The increase in consumption was not in proportion to the increase in

consumers.

3.1.12 The projections made by the TNEB were examined for reasonableness

with reference to the following

(1) Average growth rate for the period from 2003-04 to 2008-09. (The TNEB

has arrived at the average growth rate for the period from 2006-07, 2007-

08 and 2008-09)

(2) CAGR computed for the period from 2003-04 to 2008-09

(3) Consumer category wise average consumption per consumer

64

(4) Latest actuals in 2009-10

3.2 Commissions sales projections:

3.2.1 HT Industrial Consumers

3.2.1.1 In the petition (page 47), the TNEB has given the following approach for

development of the load forecast for industrial load (low, medium and

High).

“The load would depend upon the capital formation as well as the growth in

manufacturing sector. The effect of captive generation is also a major

parameter in determining the future demand growth in industrial HT

sector. Past trends have shown small increase YOY growth rate in

industrial HT demand, though industrial LT demand has shown

reasonable growth. With measures to retain HT clients and neutralize

the impact of captive generation, HT demand is expected to grow at low

YOY rate “.

3.2.1.2 However, the actual consumption from 2003-04 to 2008-09 shows a

higher YOY growth rate in HT industrial demand. The average increase

for this period was 9.67% even taking into account the negative growth

rate achieved in 2008-09. There was dip in sales in FY 2009 due to the

R&C measures introduced.

3.2.1.3 The same situation prevailed in 2009-10 also. But, the TNEB has

projected sales of 16562 MUs for 2009-10 (with 16.25% increase). The

TNEB has reported that sales for 2009-10 was arrived at based on the

proportionate consumption in 2007-08 due to implementation of R & C

measures in 2008-09

3.2.1.4 The actual consumption during the year 2009-10 upto February 2010

was 13121 MU. The sales for 2009-10 are fixed at 14820 MUs as

against 16562 MUs.

65

3.2.1.5 The TNEB has projected an increase of 8.33 % (based on average

increase from 2006-07 to 2008-09) over the sales for 2009-10 to arrive

at the estimated sales for 2010-11.

3.2.1.6 In view of continuous R&C measures, the projected sales for the control

period is fixed with 8.33% increase over the sales of 14820 MUs fixed for

2009-10.

3.2.1.7 The projections for the control period (2010-11, 2011-12 and 2012-13)

shall be as below.

Table – 6 Sales projections for HT industrial consumers by TNERC

TNEB TNERC Tariff 2009-10 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13

Industries (in MU)

16562 17942 19438 21058 14820 16055 17392 18841

3.2.2 HT - Recognized Educational Institutions etc.

3.2.2.1 The TNEB has projected growth in sales to HT Tariff IIA consumers at

YOY growth rate of 6.6% for the ensuing year FY 2011, FY 2012 and FY

2013 over the sales in FY 2010.

3.2.2.2 The TNEB has projected a sale of 936 MU for 2009-10 with an increase

of 5.76 % over the sale for 2008-09.

3.2.2.3 The actual consumption upto February 2010 was 882 MU and hence,

the projected sale for 2009-10 is fixed at 970 MU.

3.2.2.4 The projections for the control period is fixed with 6.60% increase over

the sale of 970 MU fixed for 2009-10.

Table – 7 Sales Projections for HT Recognized educational institutions

(in MUs)

TNEB TNERC Parameter 2009-10 MU 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13

At the average rate 6.6%

936 998 1064 1135 970 1034 1102 1175

66

3.2.3 HT – Actual places of public worship

3.2.3.1 There are 5 services in the category and the TNEB has projected a sale

of 4 MUs for all the 3 years. The actual consumption in 2009-10 upto

February 2010 is 4 MU. Hence the projection by TNEB is approved.

3.2.4 HT –Commercial 3.2.4.1 The TNEB has stated that they have adopted the following approach for

development of the load forecast for commercial category.

“The Commercial load growth is expected to grow again with the increase in

population as well as increased spending. Tamil Nadu primarily being a

service economy (to a large extent) commercial demand growth is

expected to continue growing at an increasing YOY rate during the

projection period”.

3.2.4.2 The TNEB has projected sales with YOY increase at 10.35 % for the

ensuing years 2010-11, 2011-12 and 2012-13. There were dips in sales

during 2008-09 and 2009-10 and this decrease might be due to R&C

measures.

3.2.4.3 The actuals upto February 2010 was 1456 MU and hence, the sale for

2009-10 is fixed at 1600 MUs (based on sales in February 2010).

3.2.4.4 The average increase in sales during the period from 2004-05 to 2008-

09 was 9.47% (The increase in sales for 2003-04 was (-) 19.74% and

hence excluded to arrive at the average.)

3.2.4.5 Five years CAGR for this period works out to 9 %.

3.2.4.6 The projection for the control period is fixed with 9% increase over the

revised sales for 2009-10.

Table – 8 Sales Projections for HT Commercial

Parameter TNEB TNERC

2009-10 2010-11 2011-12 2012-13 2009-10 2010- 11 2011-12 2012-13

CAGR 9% (in MU)

1514 1671 1844 2034 1600 1744 1901 2072

67

3.2.5 HT– Lift Irrigation

3.2.5.1 There are 12 consumers. No increase in Number of consumer has been

projected

3.2.5.2 Actual sales from 2003-04 to 2008-09 and for estimation / projection

from 2009-10 to 2012-13 are as below :

Table – 9 Actual sales and Projections for HT Lift Irrigation

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

2012-

13

MU 6 7 7 9 9 9 11 12 14 15

3.2.5.3 The TNEB has estimated a sale of 11 MU for 2009-10. The actual sales

upto January 2010 was 6 MU. Hence, the Commission fixes the sales at

9 MU for each year of the control period.

3.2.6 Supply to Puducherry

3.2.6.1 The Tariff petition filed by TNEB includes sale of power to the Union

Territory of Puducherry and the projection for various years are as

follows:

(a) 2007-08 393 MU

(b) 2008-09 373 MU

(c) 2009-10 420 MU

(d) 2010-11 445 MU

(e) 2011-12 471 MU

(f) 2012-13 499 MU

3.2.6.2 The Commission desired to know the basis on which power is being

supplied to Puducherry and sought details regarding agreement if any

entered into between the two States. The TNEB has not been able to

produce any agreement for sale of power to Puducherry. In this

backdrop the Commission had examined the tariff orders issued by the

Commission in 2003.

68

3.2.6.3 The position taken by Government of Puducherry during the earlier tariff

determination exercise was that the tariff for supply of energy to

Puducherry should be as per the Tamil Nadu Revision of Tariff Rates on

Supply of Electrical Energy Act, 1978 and the supply shall be charged at

the rates supplied by NLC to the TNEB plus wheeling charge at 10 Paise

per KWh plus 4% on the energy wheeling towards transmission loss.

The State of Puducherry also disputed the jurisdiction of the TNERC to

decide the tariff for Puducherry. The TNEB had expressed a view that

the agreement between TNEB and NLC is a bilateral agreement and the

Government of Puducherry is not a party to this agreement. Since the

cost of supply at the HT end worked out to 303.69 paise, they proposed

to continue charging Puducherry @ Rs.3.00 per kWh under HT Tariff V.

The Commission maintained status quo and continued the then

prevailing tariff of Rs.3 per kWh.

3.2.6.4 Since the Joint Electricity Regulatory Commission for the State of Goa

and Union Territory of Puducherry had issued an order on ARR and

Retail tariff for the electricity department, Government of Puducherry for

the financial year 2009-10 on 5-2-2010 the Commission had examined

that order too and the relevant portion with reference to sale of power by

TNEB to Puducherry is extracted below:

“In respect of purchase of power from TNEB the EDP has submitted that initially the

power availed from TNEB was charged at the rate paid by TNEB to NLC plus

wheeling charges. The TNEB has revised the tariff to Rs.3.00per kwh with

effect from 01/12/2001 treating EDP as a HT consumer. The EDP has

challenged this decision by filing a petition before Hon’ble TNERC. The Hon’ble

TNERC concluded that the sale of power between EDP and TNEB was in the

nature of interstate sale of power and EDP cannot be treated as a HT

consumer and ordered to maintain status quo. The EDP has challenged this in

the Hon’ble High Court of Judicature at Madras and stay was granted and the

Hon’ High Court directed payment to TNEB at the rate charged by NLC plus

wheeling charges. The EDP made the payment accordingly. The main issue

is yet to be decided.”

69

3.2.6.5 The Commission would like to observe that in the absence of firm sale

contract between TNEB and the Government of Puducherry and with the

ever increasing sale of electricity to Puducherry by the TNEB, a situation

is being created which has resulted in the TNEB subsidizing the

electricity consumers of Puducherry at the expense of electricity

consumers of Tamil Nadu. Currently, the TNEB itself is facing an acute

shortage of power and has been purchasing power in the open market in

the range of Rs. 5 to 7 per unit. Whereas the sale to Puducherry is at the

rate of Rs.1.94 per unit. TNEB needs to protect the electricity consumers

of Tamil Nadu.

3.2.7 LT – DOMESTIC

3.2.7.1 The TNEB has projected sales for the control period as detailed below:

Table – 10 Sales projections for LT domestic by TNEB

Sl. No.

Details 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 14762913 15806712 16924311 18120929

2. Consumption in MU 13709 14524 15578 16309

3. % increase in No. of Consumers

7.07 7.07 7.07 7.07

4. % increase in Consumption 2.40 5.94 7.26 4.69

5. Specific Consumption (Consumption/Consumer)(units)

928.611 918.850 920.451 900.009

3.2.7.2 The past trend in consumption pattern is as given below:

Table – 11 Past trend in consumption of LT domestic

Sl. No.

Details 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1. No. of Consumers

11181950 11459503 11974293 12948941 13726048 13788042

2. Consumption in MU

9719 9675 11052 12034 12575 13387

3. % increase in No. of Consumers

7.31 2.48 4.49 8.14 6 0.45

4. % increase in Consumption

9.98 (-)0.45 14.23 8.88 4.50 6.45

5. Specific Consumption

869.168 844.277 922.977 929.342 916.141 970.914

70

3.2.7.3 There is no uniform pattern either in the percentage of increase in the

number of consumers or in the percentage of increase in consumption.

7.07% growth adopted to project the number of consumer is on the

higher side. Also, the increase in (sales) consumption projected also

varies for each year and is not supported by any data.

3.2.7.4 The sales projected for 2009-10 is 13709 MU. The available actuals

upto January 2010 was 13109 MU. Based on the trend of sales upto

January 2010 the sales of 13709 MUs estimated by the TNEB for 2009-

10 is revised as 15535 MUs.

3.2.7.5 The average Consumption per consumer for 2009-10 based on such

revised consumption shall be 1052.299 units.

3.2.7.6 The average increase in the number of consumers from 2003-

04 to 2008-09 is 4.81%.

3.2.7.7 The sales for the control period is fixed based on the average

consumption per consumer as below:

Table – 12 Sales projections for LT domestic by TNERC

TNEB TNERC Details 2009-

10 2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

Average consumption per consumer of 1052.299 units (in MU)

13709 14524 15578 16309 15535 16282 17065 17886

3.2.8 LT – HUT 3.2.8.1 The TNEB has Projected Sales for the Control Period at a growth rate of

6.1% over the Sales for 2009-10. The number of Consumers for the

Control Period has been projected with an increase of 4.51% YOY. The

details are as below:

71

Table – 13 Sales projections for LT hut by TNEB

Sl. No. Details Actuals Projections

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 1114379 1197745 1251809 1308313 1367368 1429089

2. Sales in MU 190 195 216 229 243 258

3. % increase in Consumption

2.70 2.63 10.77 6.02 6.11 6.17

4. % increase in number of Consumers

6.33 7.48 4.51 4.51 4.51 4.51

3.2.8.2 While reconciling the Subsidy paid for 2008-09 to Hut Consumers, the

TNEB has stated that the actual number of Hut Consumers as on 31-03-

2009 was 1228561 as against 1197745 furnished in the ARR.

3.2.8.3 The details of Consumers and Consumption for the period from 2003-04

to 2006-07 are furnished below :

Table – 14 Growth of consumers and consumption in Hut category

Sl. No.

Details 2003-04 2004-05 2005-06 2006-07

1. No. of Consumers 972564 981960 1020509 1048024

2. Consumption (in MU) 173 180 182 185

3. % increase in Consumption 4.22 4.05 1.11 1.65

4. % increase in number of Consumers

(-)30.29 0.97 3.93 2.69

3.2.8.4 The average increase in the number of Consumers from 2004-05 to

2008-09 is 4.28%. The TNEB in their tariff petition have stated that a lot

of Consumers from Hut Category would shift to Domestic Category.

3.2.8.5 The Hut Category is unmetered. In the earlier Tariff Petition, the TNEB

had submitted that the consumption on account of Hut Service, has

been assessed assuming an average of eight hours per day of

consumption, for a 40 Watts electric lamp load.

3.2.8.6 In the absence of meter to measure the consumption by Hut Consumers,

the actual consumption furnished by TNEB cannot be checked for

correctness.

3.2.8.7 Now free Colour Television Sets have been distributed to Hut dwellers

and the Commission has ordered in T O 1-95 dated 03-11-2006 the load

be increased to 110W i.e, 40W for the bulb and 70W for the T.V.

72

3.2.8.8 The consumption by Hut Consumers is computed based on load and

hours of usage with the increase in number of consumers at 4.28% for

the control period (No. of Consumers at the middle of the year x 110 W x

8 Hr. x 365 days) as below:

Table – 15 Projection of growth of consumers and consumption in Hut category

TNEB TNERC Details 2009-10 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13

No. of Consumers at the end of the year

1251809 1308313 1367368 1429089 1251809 1305386 1361257 1419519

No. of Consumers at the middle of the year

1224777 1278598 1333322 1390388

Consumption (in MUs)

216 229 243 258 393 411 428 447

3.2.9 LT– BULK SUPPLY TO RAILWAY COLONIES, PLANTATION

WORKER COLONIES, DEFENCE COLONIES Etc,

3.2.9.1 The TNEB has projected the following Sales for the Control period:

Table – 16 Projection of sales by TNEB for LT bulk supply to railway colonies, plantation worker colonies, defence colonies, etc.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

No. of Consumers 636 578 667 771 890 1027

Consumption (in MUs) 3 12 3 4 5 6

% increase in No. of Consumers

25.94 (-)9.12 15.40 15.59 15.43 15.39

% increase in Consumption - 300 (-)75 33.33 25 20.00

3.2.9.2 The tariff was introduced from 16-03-2003. The consumption recorded

was 2 MUs each in 2003-04, 2004-05 and 2005-06, 3 MUs in 2006-07,

2007-08 and Projections for 2009-10. There was 12 MUs only in 2008-

09.

3.2.9.3 The TNEB has projected YOY increase of 1 MU from 2010-11 to 2011-

12.

3.2.9.4 The Projections made by TNEB is accepted.

73

3.2.10 LT - PUBLIC LIGHTING AND WATER SUPPLY

3.2.10.1 The TNEB has made the following Sales Projection in the Tariff Petition :

Table – 17 Projection of sales by TNEB for LT public lighting and water supply

Sl. No.

Details 2007-08 (Audited Accounts)

2008-09 (Prelim.

Accounts)

2009-10 Estimates

2010-11 2011-12 2012-13

1. No. of Consumers

416171 416928 475245 541718 617489 703858

2. Sales in MUs 973 1213 1043 1077 1111 1147

3. Increase in Consumers (%)

20.50 0.18 13.98 13.98 13.98 13.98

4. Increase in Sales (%)

(-)24.86 24.67 (-)14.01 3.26 3.16 3.24

3.2.10.2 It may be seen that 20.50% increase in number of Consumers has

resulted in a reduction in Sales by 24.86%, while 0.18% increase in

number of Consumers has resulted in 24.67% increase in Sales.

3.2.10.3 There cannot be such wide fluctuation in the supply to Street Light and

Water Supply Works. The data may not be correct.

3.2.10.4 The TNEB has projected YOY growth rate of 13.98% in the number of

Consumers and 3.2% in Sales.

3.2.10.5 The Consumers strength and Sales recorded in the previous years are

as below :

Table – 18 Trend of consumers strength and sales for LT public lighting and water supply

Sl.

No.

Details 2003-04

2004-05

2005-06

2006-07

1. No. of Consumers 303127 312209 321352 345362

2. Sales in MUs 1080 1134 1179 1295

3. Increase in Consumers (%) 2.25 2.99 2.93 7.47

4. Increase in Sales (%) 4.04 5 3.97 9.84

74

3.2.10.6 The TNEB has estimated a Sale of 1043 MUs for 2009-10. The actual

Sales upto January 2010 was 1283 MUs. Thus, the Sales for 2009-10 is

re-fixed at 1540 MUs as against TNEB’s estimate of 1043 MUs.

3.2.10.7 The average increase in number of Consumers from 2003-04 to 2005-06

is 2.72%. The number of Consumers is increased at 2.72% from 2007-

08.

3.2.10.8 The Specific Consumption (Consumption per Consumer) in 2009-10 with

the revised number of consumers and consumption will be 3507 units.

3.2.10.9 The sales for the control period is fixed with reference to the specific

consumption and increase in number of consumers as detailed below:

Table – 19 Projection of sales by TNERC for LT public lighting and water supply

Details 2009-10 2010-11 2011-12 2012-13

No. of Consumers (2.72% over 2007-08) 439119 451063 463332 475934

Sales @ Specific Consumption of 3507

units (in MUs)

1540 1581 1625 1669

3.2.11 LT - Recognized Educational Institutions etc.

3.2.11.1 The TNEB in the petition have made the following projection :

Table – 20 Projection of sales by TNEB for LT recognized educational institutions

Sl. No.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 108541 112027 111638 111250 110863 110478

2. Sales in MU 335 595 357 471 620 817

3. % of increase in No. of Consumers

0.31 3.21 (-) 0.35 (-) 0.35 (-) 0.35 (-) 0.35

4. % increase in Sales 6.69 77.61 (-) 40.0 31.93 31.63 31.78

5. Sales per Consumer in units

3086.39 5311.22 3197.84 4233.71 5592.49 7395.14

75

3.2.11.2 The past trend in sales is as follows :

Table – 21 Sales trend for LT recognized educational institutions

Sl. No.

Details 2003-04 2004-05 2005-06 2006-07

1. No. of Consumers 138837 141143 109304 108210

2. Sales in MU 238 265 283 314

3. % of increase in Consumers (-)0.39 1.66 (-)22.56 (-)1

4. % increase in Sales (-)10.86 11.34 6.79 10.95

5. Specific Consumption 1714.24 1877.53 2589.12 2901.76

3.2.11.3 The sales for 2008-09 as per preliminary accounts are abnormally high.

The sales in 2005-06, 2006-07 and 2007-08 appear reasonable. The

average increase for these periods is 8.14%.

3.2.11.4 The TNEB has projected a sale of 357 MUs for 2009-10. The actual

sales upto January 2010 was 293 MUs and hence the projection of 357

MUs for 2009-10 is approved.

3.2.11.5 The sales for the control period is fixed with 8% increase over the sales

for 2009-10 as below:

Table – 22 Projection of sales by TNERC for LT recognized educational institutions

TNEB TNERC

Years 2009-

10

2010-11

2011-12

2012-13

2009-

10

2010-11

2011-12

2012-13

Sales in MUs 357 471 620 817 357 386 416 450

3.2.12 LT – ACTUAL PLACES OF PUBLIC WORSHIP

3.2.12.1 The TNEB has made the following projection in Form-2 of ARR.

Table – 23 Projection of sales by TNEB for LT actual places of public worship

Sl. No.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 104198 119846 127037 134659 142739 151303

2. Sales in MU 68 115 74 78 83 88

3. % of increase in number of consumers

8.56 15.02 6 6 6 6

4. % of increase in Sales

13.33 69.12 (-)35.65 5.4 6.4 6

76

3.2.12.2 The TNEB has projected the Consumers and Sales at YOY rate of 6%

for the Control Period.

3.2.12.3 The Sales from 2003-04 to 2006-07 as per the accounts of the TNEB are

as below :

Table – 24 Sales and consumer growth trend for LT actual places of public worship

Sl.

No.

Details 2003-04 2004-05 2005-06 2006-07

1. No. of Consumers 39246 46256 46573 95979

2. Sales in MU 44 46 49 60

3. % of increase in

Consumers

63.05 17.86 0.69 106.08

4. % of increase in Sales 158.82 4.54 6.52 22.45

3.2.12.4 The actual sales upto January 2010 was 76.68 MUs as against the

projected sales of 74 MUs for the entire year. Hence, the sales for 2009-

10 are fixed at 93 MUs based on the trend of sales.

3.2.12.5 The sales for the control period is fixed with 6% increase every year over

93 MUs fixed for 2009-10 as below:

Table – 25 Sales projection for LT actual places of public worship

TNEB TNERC

2009-10

2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

Sales (in

MU)

74 78 83 88 93 98 104 110

3.2.13 LT – COTTAGE & MICRO INDUSTRIES

3.2.13.1 The TNEB has made the following Projection in the petition and in the

ARR :

Table – 26 Sales projection by TNEB for LT Cottage and Micro Industries

Sl. No.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 41399 45934 48576 51370 54325 57450

2. Sales in MU 264 610 284 416 610 895

3. % of increase in Consumers

7.95 10.95 5.75 5.75 5.75 5.75

4. % of increase in Sales in MU

1.54 131.06 (-)53.44 46.48 46.63 46.72

5. Specific Consumption 6376.965 13279.923 5846.508 8098.112 11228.716 15578.764

77

3.2.13.2 The TNEB has projected the Sales for the Control Period at YOY rate of

46.6%.

3.2.13.3 The past trend in Sales is detailed below :

Table – 27 Sales trend for LT Cottage and Micro Industries

Sl. No.

Details 2003-04 2004-05 2005-06 2006-07

1. No. of Consumers 41779 43940 37034 38350

2. Sales in MU 215 236 242 260

3. % of increase in Consumers 30.10 5.17 (-)15.72 3.55

4. % of increase in Sales in MU 14.36 9.77 2.54 7.44

5. Specific Consumption 5146.126 5370.960 6534.536 6779.661

3.2.13.4 The actual Sales for the year 2009-10 upto January 2010 was 93 MUs

and based on the month-wise Sales, the Sales for the year 2009-10 is

revised as 111 MUs.

3.2.13.5 The CAGR for the period from 2003-04 to 2007-08 (excluding 2008-09)

is 5%.

3.2.13.6 The sales for the control period is fixed with an increase of 5% (CAGR)

each year over the revised sales of 111 MUs for 2009-10 as below:

Table – 28 Sales projection for LT Cottage and Micro Industries

TNEB TNERC

2009-10

2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

Sales (in MU)

284 416 610 895 111 117 122 128

3.2.14 LT – POWERLOOMS

3.2.14.1 The TNEB has made the following projections in the ARR :

Table – 29 Sales projection by TNEB for LT Power looms

Sl. No.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers

102927 103445 115686 129377 144687 161809

2. Sales in MUs 672 799 720 749 779 811

3. % increase in

4.23 0.50 11.83 11.83 11.83 11.83

78

Consumers

4. % increase in Sales

4.48 18.89 (-)9.89 4 4 4

5. Specific Consumption (in units)

6528.899 7723.911 6223.744 5789.282 5384.036 5012.082

3.2.14.2 The TNEB has projected the number of consumers at the YOY rate of

11.83% and the sales at YOY rate of 4%.

3.2.14.3 The TNEB has projected a sale of 720 MUs for the year 2009-10.

However, the actual sales upto January 2010 was 679.324 MUs. Based

on the pattern of sales, the projection of 720 MUs made by TNEB is

revised as 822 MUs for 2009-10.

3.2.14.4 The projection for the control period is fixed with 4% increase every year

over the revised sales for 2009-10 as below:

Table – 30 Sales projection by TNERC for LT Power looms

Sl. No.

Details 2009-10 (In MUs)

2010-11 (In MUs)

2011-12 (In MUs)

2012-13 (In MUs)

1. At growth rate of 4% with base value as 822 in 2009-10

822 855 889 924

3.2.15 LT– INDUSTRIES

3.2.15.1 The TNEB has projected sales to LT Industries as below :

Table – 31 Sales projection by TNEB for LT industries

Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

No. of Consumers 324014 332364 339524 346837 354309 361941

Sales in MU 4585 3800 4924 4912 4902 4893

% increase /

decrease in Sales

2.94 (-) 17.12 29.58 (-)0.24 (-)0.20 (-)0.18

3.2.15.2 The TNEB has not indicated the methodology adopted to forecast the

energy consumption by LT Industrial Consumers (under LT Tariff III B).

79

They have stated that the demand and energy forecast for 2009-10 have

been arrived at based on proportionate consumption made in 2007-08 in

view of R & C 2008-09.

3.2.15.3 The energy consumption for 2009-10 has been projected at 4924 MUs

with an increase of 29.58% over the consumption in 2008-09 (and an

increase of 7.39% over the consumption in 2007-08).

3.2.15.4 The available actuals upto January 2010 was 3287 MUs.

3.2.15.5 Based on the monthly consumption pattern, the estimated consumption

for 2009-10 is revised as 3942 MUs as against 4924 MUs projected by

the TNEB. This is 3.74% more than the consumption in 2008-09

3.2.15.6 The past trend indicates that the growth was staggering as below :

Table – 32 Sales trend for LT industries

Details 2003-04 2004-05 2005-06 2006-07

Sales 3490 3810 3921 4454

% of increase 3.25 9.16 2.91 13.59

3.2.15.7 The sales for the control period is projected with the growth rate of

3.74% over the revised sales of 3942 MUs for the year 2009-10 as

below:

Table – 33 Sales projection by TNERC for LT industries

TNEB TNERC

Year 2009-

10

2010-

11

2011-

12

2012-

13

2009-

10

2010-

11

2011-

12

2012-

13

Increase @

3.74% (in

MU)

4924 4912 4902 4893 3942 4089 4242 4401

3.2.16 LT– AGRICULTURAL SERVICES

3.2.16.1 The TNEB has made the following projections for the control period:

80

Table – 34 Sales projection by TNEB for LT agricultural services

Year 2010-11 2011-12 2012-13

No. of consumers 1976246 2023646 2072183

Consumption in MU 12870 14116 15245

% increase in No. of Consumers 2.4% 2.4% 2.4%

% increase in Consumption 7.99 9.68 8%

3.2.16.2 The TNEB has not carried out any sample study to assess the

consumption in unmetered services. The TNEB has stated that there is

an estimated increase of 40,000 agricultural connections per year. The

increases in consumption / consumers proposed by TNEB are on the

higher side.

3.2.16.3 The consumption pattern in the previous years was as below:

Table – 35 Consumption patterns of LT agricultural services

As per Audited Accounts Prel. A/cs

Estimate

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

No. of Consumers

1702541 1736946 1768052 1824932 1853764 1884750 1929956

YOY increase in No. of Consumers

26428 34405 31106 56880 28832 30986 45206

Consumption in MU

9582 9757 9797 10601 11107 11499 11918

Average Consumption per service – Unit

5628 5617 5541 5809 5992 6101 6175

% increase in Consumption

6.22 1.83 0.41 8.21 4.77 3.53 3.64

% increase in No. of Consumers

1.58 2.02 1.79 3.22 1.58 1.67 2.40

3.2.16.4 The TNEB’s claim that there is an estimated increase of 40,000

agricultural consumers every year is not correct. There are shortfalls /

excess in achieving the target.

3.2.16.5 The quantum of sales furnished in earlier years is not in proportion to the

number of consumers. Increase of 31,106 service connections in 2005-

81

06 has resulted in increased consumption of 40 MUs, while increase of

28,832 service connections in 2007-08 has resulted in increased

consumption of 506 MUs over the previous year.

3.2.16.6 The TNEB probably predetermines the percentage of loss and then

estimates the agricultural consumption so as to maintain the loss level

without adopting any specific method to compute agricultural

consumption.

3.2.16.7 In the 17th Electric Power Survey (EPS), the CEA has adopted the

following formula to forecast the electrical consumption of pumpsets/tube

wells.

Y = N x S x H

Where,

Y = Electrical consumption in KWh

N = Number of pumpsets at the middle of the year

S = Average capacity of pumpset in KW at the middle of the year

H = Average electricity consumption per year per kilowatt of connected

electric load (KWh/KW)

3.2.16.8 The consumption by agricultural services is computed for the control

period by adopting CEA’s formula with the following assumption:

(i) No. of consumers (service connections) is increased @ 40,000

year after year.

(ii) The number of consumers as on 31-03-2009 is taken as 1884750

and the number of consumers for the subsequent periods may be

arrived at with the addition of 40,000 consumers every year.

(iii) Capacity of the pump sets is adopted on HP basis against the kW

basis.

(iv) The average consumption per HP per year is taken as 1051 units

based on the sample study report submitted for earlier tariff

revision.

(v) Connected load may be increased @ 5.47 HP/service.

82

3.2.16.9 The consumption in agricultural services during the control period is

arrived at as below:

Table – 36 Sales projection by TNEB for LT agricultural services

Sl. No.

Details 2009-10 2010-11 2011-12 2012-13

1. No. of service connection (consumers at the end of the year) with addition of 40,000 every year

1929204 1969204 2009204 2049204

2. No. of service connection at the middle of the year

1909204 1949204 1989204 2029204

3. Connected load in HP at the end of the year

10552746 10771545 10990345 11209145

4. Connected load in HP at the middle of the year

10443346 10662145 10880945 11099745

5. Average capacity of pumpset in HP at the middle of the year ( 4 / 2 )

5.47 5.47 5.47 5.47

6. Average consumption in KWh/HP/Annum

1051 1051 1051 1051

7. Consumption in MU (2 x 5 x 6)

10976 11206 11436 11666

3.2.16.10 The projection by TNEB is compared with the above projection as

below:

Table – 37 Comparison of sales projections by TNEB LT agricultural services with TNERC projection

(In MUs)

TNEB TNERC

2009-10 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13

Sales 11918 12870 14116 15245 10976 11206 11436 11666

3.2.17 LT – Commercial establishments and consumers not covered in

other LT categories

3.2.17.1 The TNEB has projected the following sales for the control period :

Table – 38 Sales projections by TNEB for LT commercial

Details 2010-11 2011-12 2012-13

No. of Consumers 2755838 2895387 3041893

Consumption in MU 4329 4695 5092

83

% increase in no. of Consumers 5.06 5.06 5.06

% increase in Consumption 8.44 8.45 8.46

Specific Consumption (in units) 1570.847 1621.544 1673.897

3.2.17.2 The past trend in the growth of service connection and consumption as

recorded in Board’s accounts are detailed below :

Table – 39 Sales trend for LT commercial Actuals Estimates

Details 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

No. of Consumers

1865523 1992868 2122967 2226580 2343407 2496594 2623015

Consumption in MU

2583 2814 2897 3467 3720 3660 3992

% increase in no. of Consumers

5.29 6.82 6.52 4.88 5.24 6.54 5.06

% increase in consumption

5.60 8.94 2.95 19.68 7.30 (-)1.61 9.07

Specific Consumption (in units)

1384.60 1412.04 1364.60 1557.10 1587.43 1466.00 1521.91

3.2.17.3 The TNEB has projected the sales for the control period at 8.46%, which

is the average of growth rates for the period from 2006-07 to 2008-09.

There was an abnormal growth i.e. 19.68% in 2006-07 followed by

7.30% and (-) 1.61% in subsequent years. In view of the wide variation

the growth rate of 8.46% is not considered.

3.2.17.4 The average growth rate for the period from 2003-04 to 2008-09 is

7.14%.

3.2.17.5 The CAGR for the period from 2003-04 to 2008-09 is 7%.

3.2.17.6 The available actual consumption upto January 2010 was 3507.430 MUs

against the estimated consumption of 3992 MUs for the entire year.

Hence, the estimated consumption of 3992 MUs for 2009-10 is revised

as 4257 MUs based on the trend of sales.

3.2.17.7 The sales projection for the control period is fixed with 7% (CAGR)

increase over the sales of 4257 MUs for 2009-10 as below:

84

Table – 40 Sales projections by TNERC for LT commercial

3.2.18 LT Tariff VI – (TEMPORARY SUPPLY)

3.2.18.1 The TNEB has made the following projection :

Table – 41 Sales projections by TNEB for LT temporary supply

3.2.18.2 The TNEB has projected a growth of 72.73% in Sales and 104.11% in

the number of Consumers.

3.2.18.3 The actuals for the earlier years are as below :

Table – 42 Sales trend for LT temporary supply

Sl.No Details 2003-04 2004-05 2005-06 2006-07

1 No.of consumers 3467 3355 3688 3802

2 Sales in MUs 2 2 19 11

3 % of increase / decrease in sales (in MU)

0 0 850 (-)42.10

4 % of increase in number of consumers

5.25 (-)3.23 9.92 3.09

3.2.18.4 No definite trend in the growth of Sales and Consumers could be

forecast in case of Temporary Supply.

TNEB TNERC

2009-10

2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

CAGR 7% increase

3992 4329 4695 5092 4257 4555 4874 5215

Sl. No.

Details 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1. No. of Consumers 11601 11299 23062 47073 96080 196109

2. Sales in MUs 11 39 11 19 33 56

3. % of increase / decrease in Sales (in MUs)

0 254 (-)71.79 72.73 73.68 69.69

4. % of increase in No. of Consumers

205.13 (-)2.60 104.11 104.11 104.11 104.11

85

3.2.18.5 The actuals upto January 2010 was 11.50 MUs as against 11 MUs

projected by the TNEB.

3.2.18.6 The Projection for the Control Period proposed by the TNEB is accepted.

3.3 Transmission and Distribution Loss

3.3.1 TNEB has projected the T&D loss @ 18% for all the 3 years of control

period.

3.3.2 The TNEB in para 7 of the Tariff Petition have submitted the following :

“A T&D loss level of 18% has been arrived at on the basis of energy

input into system and total output from the system for 2007-08 to 2012-

13.

T&D loss in the state are at present among the lowest in the country,

with latest TNERC Tariff Order assessing the losses at 18%. Most of the

T&D losses are technical in nature. Though it must be mentioned that a

detailed study to accurately determine T&D losses is yet to be

undertaken and results of such a study may provide a better basis for

formulating further T&D loss reduction strategies. T&D losses are

assessed as the difference between the energy input and the estimated

sales”.

3.3.3 With regard to the contention of TNEB that the T&D loss of 18% was

assessed by the Commission in the earlier Tariff Order, the Commission

observes the following:

(i) The TNEB had been maintaining the T&D loss at a level of 16.25% upto

2002 and also claimed T&D loss at the same level (16.25%) in the

petition for tariff determination filed in September 2002. In the petition,

the TNEB had furnished the following information :

(a) The Board had nearly 17 lakh agricultural connection, which

constitute 83 lakh HP of connected load.

(b) For assessing the agricultural consumption for these consumers,

the energy meters are provided to 3% of the service connections in

86

each of the distribution circles from where the consumption is

recorded on a sample basis.

(c) The average annual consumption / HP as per the sample data for

assessment of agricultural consumption was 1051 units.

(ii) As the consumption projected for the agricultural consumers in the tariff

petition did not match the consumption arrived at based on sample data

and connected load of the Agricultural services, the Commission

corrected the agricultural consumption projected by the TNEB in line with

the sample data and included the balance energy to the loss level.

(iii) The Commission has corrected the loss level furnished by the TNEB by

including the balance energy consequent to the correction made to

Agricultural consumption. The Commission had not actually made any

assessment.

(iv) The TNEB cannot maintain the loss at that level continuously without

subsequently undertaking sample study on the 3% agricultural service

connections said to have been metered.

3.3.4 Regulation 73 (Transmission and Distribution Loss) of TNERC Tariff

Regulation stipulates the following :

(i) The Distribution Licensee shall endeavour to have proper metering

arrangements for accurate measurement of transmission loss.

(ii) Appropriate sample study with the approval of the Commission shall be

conducted to estimate the consumption in unmetered services so that

distribution losses are estimated fairly accurate.

(iii) The licensee shall compute and furnish loss levels at every supply voltage

level.

3.3.5 The TNEB had neither furnished the Master Metering Plan nor made any

attempt to meter the unmetered services. They sought for extension of

time for metering the existing as well as the new service connections.

(i) The Commission has been granting extension of time for installation of

meters in unmetered services and the last extension was granted for 3

years from 01-10-2009 at the request of the Government/TNEB.

87

(ii) TNEB has undertaken to meter the new services from 01-01-2010.

3.4 Commission’s Rulings and Directives on T&D Loss / Energy Audit

in earlier Tariff Order and TNEB’s response :

3.4.1 In para 2.10.3 of the Tariff Order dated 15-03-2003, the Commission

issued the following ruling on T&D losses :

The Commission is of the opinion that ultimately the TNEB should be

able to assess the transmission and distribution losses in each of the

voltage systems of the grid. As a first step, the Commission directs the

TNEB to assess the T&D losses in the following three voltage system.

(i) 230, 110, 66 and 33 KV Voltage System: At all input source points,

meters are already installed. Meters should be installed at the output

points at each sub-station. Energy balance can be assessed by taking

the monthly readings at all these points combined, which will also give

the line losses assessed at 230, 110, 66 and 33 KV Voltage System.

(ii) 22 KV and 11 KV System: The TNEB has stated that it has already

installed meters at the Sub-stations and on 22 KV and 11 KV feeders.

Meters are to be installed at the secondary end of distribution

transformers. With the reading captured at sub-station end, distribution

transformer end readings and HT consumer end readings, if any, the

energy balance can be assessed and line loss arrived at for 22 / 11 KV

system. A representative sample study may be carried out and based

on sample study results; the total loss can be assessed.

(iii) Low Tension System: The Commission has taken note of the

consultatory work in progress for assessment of the consumption by

unmetered services. As soon as this is over, TNEB should be in a better

position to assess the line loss in the LT system.

3.4.2 The Commission in its Tariff Order dated 15-03-2003 has also issued

the following directives :

“7.16 (iii) Energy Audit:

88

The Commission is of the opinion that the TNEB should be able to

assess the transmission and distribution losses in each of the voltage

system of the Grid. Towards this, the TNEB is directed to improve the

level of metering and conduct more energy audits at the 11 KV feeder

level. The Commission directs the TNEB to undertake energy audits at

the HT/LT levels and its own generating stations and submit a quarterly

report to the Commission on the progress achieved in the energy audit

programme, the results of the energy audit and the action taken report

highlighting the action taken by the TNEB to rectify the situation.

Towards the assessment of LT line losses, the Commission has taken

note of the two consultancy work in progress under the World Bank

assisted Water Resources Consolidation Project. The results should be

submitted to the Commission and the follow-up should be completed

well before the next tariff petition”.

3.4.3 TNEB has reported to have taken the following action :

(i) Static Meters have been installed in all output points in each sub-station.

(ii) Monthly energy balance assessment is being carried out from 230 KV

level to 11 KV bus and a quarterly return is being submitted to the

Commission.

3.4.4 It is seen from the quarterly report that transmission loss from 230 KV

level to 11/22 KV bus is arrived at (energy balance) as difference

between the energy injected from generator / interstate and the energy

fed to EHT / HT consumers & total consumption at SS end of 11/22 KV.

The loss at HT and LT system is arrived at by deducting the

transmission loss from the estimated T&D loss of 18%.

3.4.5 The TNEB has reported to have taken the following action towards

reduction of loss at LT system (Distribution loss).

(i) Out of the total 186638 Nos. distribution transformers (DTs) available in

TNEB, 93101 DTs have been metered. Steps are being taken to carry

out energy accounting in the feeders where all DTs have been metered.

89

(ii) TNEB is continuously carrying out the following improvement works to

reduce the losses.

(a) Improving HT: LT ratio by erecting more High Tension lines and

erecting new Distribution transformers.

(b) Establishment of new sub-stations.

(c) Strengthening of HT line conductors.

(d) Installations of HT shunt capacitors at sub-station end.

(e) Installation of LT fixed capacitors at LT side of distribution

Transformers.

(f) Erection of link lines

(g) Re-routing of feeders.

3.4.6 The following points are observed on the action taken reports furnished

in the quarterly returns being received :

(i) The TNEB has reported that the percentage of line loss gets reduced

after improvement works as revealed by the energy accounting studies

made prior to improvement works and after improvement works.

(ii) The TNEB continue to furnish the same T&D loss level of 18%.

(iii) The TNEB contend that, with the increase in load and HT/LT network

expansion, line loss also is increasing and that the effect of improvement

works result only in containing the T&D losses without further increase.

3.4.7 The contention of TNEB is untenable. The TNEB shall arrange to take

appropriate action to assess the unmetered consumption to arrive at the

loss level correctly. The detail furnished in this regard by TNEB is only

qualitative in nature. There is no substitute for actual measurement in

computing the losses. A time bound programme for moving towards

proper metering is to be furnished by TNEB and implemented thereafter.

3.5 Assessment of Unmetered Consumption :

3.5.1 In the Action Plan on various activities received on 05-03-2003, the

TNEB had reported that as a part of World Bank assisted T.N. Water

90

Resources Consolidation Project, the Board has awarded a

Consultancy to Dr. S.K. Raheja, Retired Director of ICAR for

recommending analytical procedures and sample size assessment of

energy consumption by unmetered agricultural and hut connection.

3.5.2 The TNEB in the petition have now reported the following status:

“The Consultant has identified providing meters in 6600 Nos.

Agricultural services and 4620 Nos. hut services selected at random.

• Installation of meters has been completed;

• Meter readings taken from 01-12-2006 to 31-11-2007;

• While analyzing the data for estimation of energy consumption,

”run time error” occurred in the software;

• The error has been referred to Dr. S.K. Raheja, Consultant and

reply is awaited;

3.5.3 The contention of TNEB is unacceptable. Two years period is too long

get error rectified or to use alternate method to arrive at the loss. Having

measured 50% of their DTs, the reading of the DTs should have been

used to arrive more accurate consumption of agricultural and HUT

services.

3.6 Commission’s Rulings on T&D Loss

3.6.1 As per Regulation 73 (5) of TNERC (Terms & Conditions for

determination of Tariff) Regulation 2005, the Commission shall fix target

for reduction of losses in next three years.

3.6.2 As per para 8.2(2) of the Tariff Policy, AT & C loss reduction should be

incentivized by linking returns in a MYT framework to an achievable

trajectory.

3.6.3 As per Regulation 25 of the Terms and Conditions for determination of

Tariff for Transmission, Distribution of Electricity under MYT framework

the Commission shall fix benchmarks for reduction of losses and

licensee shall achieve the target fixed for each year of the control period.

91

3.6.4 The TNEB has furnished the following trajectory of Aggregate

Transmission & Distribution Loss to 17th Electric Power Survey.

Table – 43 AT&C loss trajectory projected by TNEB Year 2004-05 2005-

06 2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Loss level (in %)

18 18 18 17.5 17 16.5 16 15.5

3.6.5 The 17th EPS has adopted the above trajectory of reduction of loss.

3.6.6 The Commission has fixed the following year-wise target of AT&C loss

to be achieved by TNEB upto 2012 with a reduction of 0.4% every year

from 2008-09 in order dated 06-11-2008.

Table – 44 AT&C loss trajectory fixed by TNERC

Year 2008-09 2009-10 2010-11 2011-12

Loss level (in %)

19.3 18.9 18.5 18.1

3.6.7 The AT&C loss of 19.3% fixed by the Commission includes loss on

account of theft and deficiency in collection.

3.6.8 The TNEB has submitted that they have collection efficiency of 99.81%

with AT&C loss of 18.31% for 2008-09.

3.6.9 They have also submitted that they have efficient enforcement

mechanism to take preventive action to curb energy theft.

3.6.10 The Commission directs that the T & D loss be reduced by 0.40% every

year from 2010-11. The trajectory for reduction of loss is fixed as below:

Table – 45 T&D loss trajectory fixed by TNERC

Year 2009-10 2010-11 2011-12 2012-13

Loss level (in %)

18 17.6 17.2 16.8

3.6.11 In case the licensee achieves a loss at a level less than the target, he

may retain 50% of the gain out of the loss reduction and the balance

50% will be passed to the consumers as per Regulation 3 (ix) of MYT

Regulations. The licensee may consider introducing incentives for

92

employees for loss reduction. Such schemes are in operation in West

Bengal and in other States.

3.7 Net Energy Requirement

3.7.1 The demand and energy forecast and net energy requirement

determined by the Commission duly taking into account the T & D loss is

compared with the projection of TNEB as below:

Table – 46 Demand and energy forecast and net energy requirement determined by the TNERC

(in Mus)

TNEB TNERC Sl. No.

Consumer Category

Tariff

2009-10 2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

I. HIGH TENSION

1

Industries incl. Rly. Traction IA 16562 17942 19438 21058 14820 16055 17392 18841

2

Recognized Educational Institutions II A 936 998 1064 1135 970 1034 1102 1175

etc.

3

Places of Public Worship II B 4 4 4 4 4 4 4 4

4 Commercial III 1514 1671 1844 2034 1600 1744 1901 2072

5 Lift Irrigation IV 11 12 14 15 9 9 9 9

6 Supply to Puducherry V 420 445 471 499

7 Sale to Other States 455

Total HT 19447 21072 22835 25200 17403 18846 20408 22101

II LOW TENSION

1 Domestic I A 13709 14524 15578 16309 15535 16282 17065 17886

2 Huts I B 216 229 243 258 393 411 428 447

3 Bulk Supply I C 3 4 5 6 3 4 5 6

4

Public Lighting & Water Supply II A 1043 1077 1111 1147 1540 1581 1625 1669

5

Recog. Educational Institutions II B 357 471 620 817 357 386 416 450

93

etc

6

Places of Public Worship II C 74 78 83 88 93 98 104 110

7

Cottage & Micro Enterprises

III A (1) 284 416 610 895 111 117 122 128

8 Power loom III A (2) 720 749 779 811 822 855 889 924

9 Industries III B 4924 4912 4902 4893 3942 4089 4242 4401

10 Agriculture IV 11918 12870 14116 15245 10976 11206 11436 11666

11 Commercial V 3992 4329 4695 5092 4257 4555 4874 5215

12 Temporary Supply VI 11 19 33 56 11 19 33 56

Total LT 37251 39678 42775 45617 38040 39603 41239 42958

Grand Total 56698 60750 65610 70817 55443 58449 61647 65059

T & D Loss % 18 18 18 18 18 17.6 17.2 16.8

T & D Loss in MU 12446 13335 14402 15545 12170 12484 12806 13137

Net Input Energy Requirement 69144 74085 80012 86362 67613 70933 74453 78196

94

CHAPTER 4

ENERGY AVAILABILITY

The TNEB meets the energy requirement from the energy available from own

generation station and by purchase from central generating stations, IPPs and

other sources. The availability of power from various sources is as below:

4.1 OWN GENERATING STATION

4.1.1 The TNEB own the following generating stations with installed capacity

noted against each :

Table – 47 Installed capacity of the generating stations owned by TNEB

Sl.No Station Capacity (in MW)

I Coal

1 Ennore (ETPS) 450

2 Tuticorin (TTPS) 1050

3 Mettur (MTPS) 840

4 North Chennai (NCTPS) 630

Total coal based stations 2970

II Gas

1 Tirumakottai (Kovilkalappal) 107.88

2 Kuttalam 101

3 Valuthur unit I 95

4 Valuthur Unit II 92

5 Basin bridge 120

Total Gas based stations 515.88

III Hydro (36 stations) 2186.65

IV Wind Mills 17.55

Total 5690.08

4.1.2 The energy available from the Board’s own thermal generating stations is

fixed with reference to the norms of operation specified in the TNERC

Tariff Regulations 2005 as below:

4.1.3 Plant Load Factor (PLF):

Under Regulation 37, the following norms of operations have been

specified for Thermal Generating Stations.

95

(i) Target availability for recovery of full capacity (fixed) charges –

(a) All Thermal Generating Stations in Tamil Nadu except Ennore Thermal Power Generating Station 80%

(b) Ennore Thermal Power Generating Station 50% (Till Renovation and Modernization works in all units are completed) (c) In respect of Generating Stations of IPPs As per PPA

(d) New Thermal Stations 80%

(ii) Target Plant Load Factor for incentive –

(a) All the Thermal Power Generating Stations except the existing Stations of IPPs covered under PPA 80% (b) Power Generating Stations of IPPs covered under Existing PPA As per PPA

4.1.4 The average PLF achieved by the thermal station in the five years

previous to 2008-09, PLF during 2008-09 and the PLF in the 1st half year

of the 2009-10 are tabulated below:

Table – 48 PLF trend in TNEB owned thermal stations

(in %)

Sl. No.

Stations 2003-04

2004-05

2005-06

2006-07

2007-08

Average for five years

Actuals 2008-09

Upto 30-09-09

1 ETPS 32 31 15.23 36.20 51.56 33.20 49.17 38.44

2 TTPS 87.63 88.90 83.42 87.90 86.70 86.91 85.35 80.15

3 MTPS 91.28 90.85 88.59 92.59 90.94 90.85 87.78 91.75

4 NCTPS 78.57 71.00 72.50 88.87 84.38 79.06 86.52 86.79

5 Kovilkalappal (Tirumakottai)

76.59 80.78 60.62 74.47 71.60 72.81 75.48 57.72

6 Valuthur 79.98 67.03 83.80 87.42 72.00 78.05 85.00 83.00

7 Kuttalam - 73.18 74.68 68.98 31.82 62.17 82.16 77.63

8 Basin Bridge 8.38 4.13 3.83 8.45 3.95 5.75 28.02 2.67

4.1.5 The above performances are compared with the TNEB’s projections for

the control periods as below:

96

Table – 49 Projection of PLF by TNEB for TNEB owned thermal stations

(in %)

TNEB’s Projection Sl. No.

Stations Average for five years

Actuals 2008-09

Upto 30-09-09 2010-11 2011-12 2012-13

1 ETPS 33.20 49.17 38.44 50.81 50.81 50.81

2 TTPS 86.91 85.35 80.15 90.02 90.02 90.02

3 MTPS 90.85 87.78 91.75 89.01 89.01 89.01

4 NCTPS 79.06 86.52 86.79 82.45 82.45 82.45

5 Kovilkalappal 72.81 75.48 57.72 68.71 68.71 68.71

6 Valuthur Unit I 78.05 85.00 83.00 71.62 71.62 71.62

7 Kuttalam 62.17 82.16 77.63 77.08 77.08 77.08

8 Basin Bridge 5.75 28.02 2.67 23.59 23.61 23.61

9 Valuthur Unit II 78.37 78.37 78.37

4.1.6 The TNEB has stated that the less generation in TTPS during the 1st half

of 2009-10 was due to forced shut down of unit IV from 30-04-2009 to 04-

06-2009 for carrying out maintenance work due to generator stator earth

fault along with annual overhauling works. However, the performance was

above the targeted availability i.e.80.15%. The lesser generation in ETPS

was stated to be due to condenser tube problem in unit II and annual

overhauling programme in unit I, IV and V.

4.1.7 The ETPS has undergone renovation and modernization. This will call for

additional capitalization. Regulation 19 of Tariff Regulations 2005 deals

with this subject. Note No.2 to this Regulation stipulates that any

expenditure incurred on replacement of old asset shall be considered after

writing off the gross value of the original asset from the original capital

cost. Further Note 4 to the same Regulation clarifies that any expenditure

admitted by the Commission for determination of tariff on renovation,

modernization and life extension shall be certified on normative debt

equity ration as is specified in Regulation 21 after writing off the original

amount of the replaced asset from the original project cost. From the

above stipulations in the Regulations, it can be seen that it is necessary to

determine the tariff of ETPS after renovation and modernization by

following the Regulations. In view of this it was not possible for the

Commission to do this exercise in the retail tariff petition. The TNEB is

97

directed to file a separate petition for ETPS in accordance with the

Regulation within 2 months of issue of this order and the tariff of ETPS will

be decided on that basis. The details of ETPS considered in the ARR

petition shall accordingly be on provisional basis which will be subject to

adjusments on fixing of tariff of ETPS. The adjustmeny could be positive

or negative and this adjustment will be carried out in the true up petition

for 2010-11 along with carring cost.

4.1.8 The TNEB has also stated that the lesser PLF in gas based thermal

station during the first half of the current year was due to non-supply of

agreed quantity of gas by M/s.GAIL.

4.1.9 TNEB in their petition have indicated that the availability of gas from GAIL

is now reduced and is about 70% of the requirement. Accordingly various

gas based power stations of TNEB are able to operate only at lower PLF.

The Commission suggest that the TNEB may take up the issue with the

Government of India for allocation of additional gas so that the assets

which are created already are put to optimum use. The TNEB shall plan

to maximize the output of Gas based Stations and at the same time the

heat rate is also maintained at a optimal level. Another option could be to

consider alternate fuel which may require modification to the gas turbine

as well as addition of fuel system for the alternate fuel including storage

tank, fuel forwarding system etc., which will involve construction period

and additional capital cost.

4.1.10 TNEB may also take up this matter with GAIL for use of allocated gas in

various power stations and in case the TNEB cannot utilise the entire gas

allocated to them, the issue of using this surplus gas by other generators

in the State may also be considered. This needs to be done in

consultation with GAIL. Yet another issue involved in use of gas is “take

or pay” contract for gas supply. TNEB may ensure that at all times the

allocated gas is fully utilised so that “take or pay” conditions may not be

attracted.

98

4.1.11 The Commission considers the PLF for thermal stations as tabulated

below for the purpose of energy availability:

Table – 50 Projection of PLF by TNERC for TNEB owned thermal stations

(in %)

TNEB TNERC Sl. No.

Station

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

1 ETPS 50.81 50.81 50.81 50.81 50.81 50.81

2 TTPS 90.02 90.02 90.02 90.02 90.02 90.02 3 MTPS 89.01 89.01 89.01 91.75 91.75 91.75 4 NCTPS 82.45 82.45 82.45 86.79 86.79 86.79

5 Kovilkalappal (Tirumakottai)

68.71 68.71 68.71 68.71 68.71 68.71

6 Valuthur Unit I 71.62 71.62 71.62 71.62 71.62 71.62

7 Kuttalam 77.08 77.08 77.08 77.08 77.08 77.08

8 Basin Bridge 23.59 23.61 23.61 5.75 5.75 5.75

9 Valuthur Unit II

78.37 78.37 78.37 78.37 78.37 78.37

4.1.12 The coal based thermal stations except ETPS are entitled for incentive for

generation in excess of target availability in accordance with Regulations

37 (ii) and 44 of Tariff Regulations, 2005.

4.1.13 The TNEB shall study the causes for the low performance of ETPs inspite

of R&M works and take appropriate action to improve the performance.

4.2 Auxiliary Consumption

4.2.1 The normative auxiliary energy consumption specified in the Tariff

Regulations, 2005 are as below:

“Coal based:

Table – 51 Normative auxiliary consumption for coal based stations

Sl. No.

Particulars With Cooling tower

Without cooling tower

1 200 MW series 9.00% 8.50%

2 500 MW series

Steam driven boiler feed pumps 7.50% 7.00%

Electrically driven boiler feed pumps

9.00% 8.50%

(7) Gas & Naphtha based

- Combined cycle - 3.00%

99

- Open cycle - 1.00%”

4.2.2 The TNEB did not furnish the station wise projection of auxiliary

consumption in the petition.

4.2.3 The average of auxiliary consumption for five years earlier to previous

year, auxiliary consumption in the previous year (2008-09) and the first

half of the current year (2009-10) are tabulated as per TNEB’s Annual

Statement of Accounts are tabulated submission below:

Table – 52 Trend in auxiliary consumption for TNEB owned thermal generating stations

(in %)

Sl. No.

Station 2003-04

2004-05

2005-06

2006-07

2007-08

Average of five years

2008-09

Upto 30-09-09

1 ETPS 13.92 14.80 16.14 13.86 13.68 14.48 14.57 15.27

2 TTPS 7.80 7.80 8.06 7.88 8.00 7.91 7.94 8.16

3 NCTPS 9.14 9.14 9.42 8.91 8.89 9.10 8.67 8.90

4 MTPS 7.84 8.27 8.38 8.21 8.14 8.18 8.08 8.08

5 Tirumakottai

5.30 6.00 6.80 6.40 6.00 6.10 5.93 7.49

6 Valuthur GTS-I

5.00 5.70 5.60 5.60 5.99 5.58 6.53 6.30

7 Kuttalam –GTPS

5.50 6.10 6.40 5.80 5.95 5.87 6.42

8 Basin Bridge

0.80 0.80 0.59 0.60 0.62 0.68 0.59 0.58

9 Valuthur GTS-II

4.2.4 The TNEB has furnished the following reasons for the higher auxiliary

consumption in ETPS and NCTPS:

(1) The units in NCTPS are of KWU design and hence the auxiliary

consumption is higher than the norms.

(2) In ETPS, the higher auxiliary consumption is due to start up

activities and low load operations.

4.2.5 TNEB has stated in their letter dated 22-07-2010 that they have installed

gas booster compressors in some of their gas turbine stations on account

of gas being delivered at a low pressure by M/s GAIL. In the absence of

installation of gas booster compressors, the gas delivered by GAIL could

100

not be used for generation of power and consequently the power plant

would have remained idle. It is reported that the contract with GAIL does

not provide for any compensation or damages for such breach of contract.

With a view to operate the power station using the gas as delivered by

GAIL, it has become necessary for TNEB to instal gas booster

compressors. This has resulted in increased auxiliary energy

consumption. Currently, clause 37 of terms and conditions for

determination of tariff regulations 2005 of the Commission provides for

auxiliary energy consumption as follows:

Open Cycle Gas based thermal power station - 1%

Combined Cycle Gas based thermal power station - 3%

4.2.6 The TNEB has sought relaxation of the auxiliary energy consumption

norms for their power stations as follows:

Tirumakottai -- 7.3%

Valuthur I -- 7.0%

Valuthur II -- 6.5%

Kuttalam -- 7.6%

4.2.7 The average of auxiliary energy consumption of the above power stations

during 2007-08, 2008-09 and 2009-10 is

Tirumakottai -- 5.96%

Valuthur -- 5.90%

Kuttalam -- 5.92%

4.2.8 The Central Electricity Authority in their “Technical Standard on operation

norms for CCGT station, 2004” have permitted additional 2.5% auxiliary

energy consumption for gas booster compressors. Taking these factors

into consideration the Commission relaxes the norms and permits auxiliary

energy consumption at 6% for 2010-11, which is the average for the last

101

three years. This relaxation is approved by the Commission in accordance

with Clause 90 of (Terms and conditions for determination of tariff)

Regulations – 2005.

4.2.9 The percentage of auxiliary consumption approved by the Commission is

as below:

Table – 53 Auxiliary consumption approved by TNERC for TNEB owned thermal generating stations

(in %)

Sl. No.

Station Average of five years

Actual 2008-09

Actual Upto 30-09-09

TNEB’s projection for control period

TNERC’s approval for

control period

1 ETPS 14.48 14.57 15.27 8.50 8.50

2 TTPS 7.91 7.94 8.16 8.50 8.50

3 NCTPS 9.10 8.67 8.90 8.50 8.50

4 MTPS 8.17 8.08 8.08 9.00 9.00

6 Tirumakottai 6.10 5.93 7.49 4.66 6.00

7 Valuthur GTS-I 5.58 6.53 6.30 5.20 6.00

8 Kuttalam –GTPS 5.95 5.87 6.42 5.28 6.00

9 Basin Bridge 0.68 0.59 0.58 1.21 1.00

10 Valuthur GTS-II 5.21 6.00

4.3 Capacity addition in Thermal Generation

4.3.1 The TNEB has projected the following generation from the additional units

being installed at North Chennai and Mettur:

Table – 54 New thermal capacity additions by TNEB

(Generation in MUs)

Sl. No.

Station 2010-11 2011-12 2012-13

1 NCTPS Stage II (2 X 600 MW) –Unit 1

115 4020 3564

2 NCTPS Stage II (2 X 600 MW) –Unit 2

1481 3564

3 MTPS Stage III (1 X 600 MW)

1728 3802

4.3.2 The estimated generation in these projects has been projected for 2011-

12 and 2012-13 at normative parameters from the month subsequent to

the latest anticipated month of commissioning for the year 2011-12 and

2012-13.

102

4.3.3 Valuthur GTS-II with an an installed capacity of 92 MW was commissioned

on 17-02-2009. But the station is not in operation and is likely to be put

back in operation in July 2010. The generation from this station is

projected accordingly.

4.3.4 The energy available from the own thermal stations on the above parameters is as below:

Table – 55 Energy available from TNEB owned thermal stations

Energy available in MU Sl. No

Stations

Capacity (in MW)

PLF (in %)

Aux. Consu. (in %)

2010-11 2011-12 2012-13

Gross Gen.

Aux. Consu.

Net energy

Gross Gen.

Aux. Consu.

Net energy

Gross Gen.

Aux. Consu.

Net energy

1 ETPS 450 50.81 14.48 2003 290 1713 2003 290 1713 2003 290 1713

2 TTPS 1050 90.02 8.50 8280 704 7576 8280 704 7576 8280 704 7576

3 MTPS 840 91.75 9.00 6751 608 6143 6751 608 6143 6751 608 6143

4 NCTPS 630 86.79 8.50 4790 407 4383 4790 407 4383 4790 407 4383

Cap. Addn.

5 NCTPS Stage II (unit 1)

600 80 8.50 0 0 0 2799 238 2561 4205 357 3848

6 NCTPS Stage II (unit 2)

600 80 8.50 0 0 0 1394 118 1276 4205 357 3848

7 MTPS Stage III

600 80 9.00 0 0 0 2799 252 2547 4205 378 3827

Total Coal 4770 21824

2009 19815

28816

2617 26199

34439

3101 31338

8 Kuttalam –GTPS

101 77.08 6.00 682 41 641 682 41 641 682 41 641

9 Tirumakottai 107.88

68.71 6.00 649 39 610 649 39 610 649 39 610

10 Valuthur GTS-I

95 71.62 6.00 596 36 560 596 36 560 596 36 560

11 Valuthur GTS-II

92 78.37 6.00 474 28 446 632 38 594 632 38 594

12 Basin Bridge 120 5.75 0.58 60 0.35 60 60 0.35 60 60 0.35 60

Total Gas 515.88

2461 144.35

2317 2619 154.35

2465 2619 154.35

2465

Grand Total 5285.88

24285

2153.35

22132

31435

2771.35

28664

37058

3255.35

33803

103

4.4 HYDEL GENERATING STATIONS

4.4.1 The TNEB has 36 hydel generating stations with a total installed capacity

of 2186.65 MW. The generation in stations of 856 MW capacities is linked

to irrigation.

4.4.2 The TNEB in the petition had proposed a capacity addition of 93 MW

during 2010-11 and 2011-12. The expected months of commissioning of

new projects are as below:

Table – 56 New hydro capacity additions by TNEB

Sl. No.

Name of the project 2010-11 2011-12

Capacity in MW

Expected month of commissioning

Capacity in MW

Expected month of commissioning

1 Periyar Vaigai SHEP I 4.00 June 2010

2 Periyar Vaigai SHEP II 2.50 Nov 2010

3 Periyar Vaigai SHEP IV 2.50 Nov 2010

4 Bhavani Barrage II 10.00 Dec 2010

5 Periyar Vaigai SHEP III 4.00 April 2011

6 Bhavani Barrage I 10.00 May 2011

7 Bhavani Kattalai Barrage II

30.00 May 2011

8 Bhavani Kattalai Barrage III

30.00 June 2011

Total 19.00 74.00

4.4.3 The total installed capacity of hydel generation at the end of each control

period will be as below :

Table – 57 Total installed capacity of hydro stations

At the end of the year Installed capacity in MW

2010-11 2206

2011-12 2280

2012-13 2280

4.4.4 In the petition, the TNEB has projected the available net energy from

hydel generating station as below :

Table – 58 Projection of energy availability from hydro stations by TNEB.

PARTICULARS 2009-10 2010-11 2011-12 2012-13

Available net energy in MU from all hydel generating stations

5404

4924

4924

4924

104

4.4.5 As against the projected net generation of 5404 MU in 2009-10, the actual

gross generation was 5628.997 MU which is 29.39% of the installed

capacity.

4.4.6 The Commission directed the TNEB to furnish the following information :

a) The details of hydel capacity available

b) Auxiliary consumption

c) Consumption by Kadamparai Pumped storage Hydro station for

pump mode

d) The details of storage levels in terms of MU

4.4.7 The TNEB has furnished the generation availability as on 1st January

2010 as 814 MW

4.4.8 The Auxiliary consumption has been projected as below :

Table – 59 Projection of auxiliary consumption in TNEB owned hydro stations

Sl. No.

Details 2009-10 2010-11 2011-12 2012-13

1 Auxiliary consumption ( MU)

22 23 23 23

2 Consumption by Kadamparai PSHEP for pump mode (MU)

480 480 480 480

4.4.9 The TNEB has furnished the following reservoir levels in terms of MUs.

24.03.2010.

Niligris group : 979.712 MU

Others except Mettur : 248.320 MU

Mettur : 57.290 MU

Total : 1285.322 MU

4.4.10 The generation during the past period were as below :

Table – 60 Trend in hydro generation

Sl No

Details 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 Installed capacity in MW

1996 1996 2137 2184 2187 2187

2 Capacity availability 11.88 25.00 34.39 32.89 33.60 28.04

105

factor (%)

3 Energy generated in MU

2067 4426 6141 6292 6455 5386

4 Auxiliary consumption in MU

16 19 28 22 25 22

5 Consumption by KPSHEP for pump mode

468 232 555 417 403 238

4.4.11 The years 2005-06 to 2008-09 were good monsoon years and the TNEB

has been creating Hydro Balancing Fund for generation in excess of 25%

of the installed capacity as per the provisions in the Tariff Regulations.

4.4.12 Regulation 76 (2) of the Tariff Regulations specifies the following :

“The average contribution of power by the hydro stations in a normal

monsoon year shall be at the overall average plant load factor of 25%

and the licensee shall estimate quantum of generation from the hydro

stations at 25% PLF of the total installed capacity of all the stations as

at 31st March of the preceding year”

4.4.13 Hence, 25% PLF of the installed capacity is considered as capacity

available factor and generation from hydel stations projected accordingly.

4.4.14 The Auxiliary consumption and consumption by Kadamparai PSHPS for

pump mode are projected (for all three years) based on the average of the

Auxiliary consumption and consumption of KPSHES for 5 years from

2004-05 to 2008-09.

4.4.15 The Commission fixes the following quantum generation from the hydro

stations:

Table – 61 Projection of hydro generation by TNERC

Sl. No.

Details 2010-11 2011-12 2012-13

1 Installed capacity at the end of the preceding year (in MW)

2187 2206 2280

2 Generation at 25% PLF ( MU) 4789 4831 4993

3 Auxiliary consumption ( MU)

23 23 23

4 Consumption by Kadamparai PSHES for pump mode ( MU)

369 369 369

5 Net generation available ( MU) 4397 4439 4601

106

4.4.16 The financial loss or gain on account of variation in quantum of power

purchase, if any, on account of changes in thermal hydro mix due to

natural calamities shall be adjusted through credit / debit in Hydro

Balancing Fund.

4.5 WIND BASED GENERATION

4.5.1 The TNEB had about 120 Numbers small and medium sized wind mills

with an aggregate generation capacity of 19.355 MW upto 2006-07.

4.5.2 Wind mills with an aggregate capacity of 1.8 MW have been handed over

to CWET. The TNEB has now wind mills with a generating capacity of

17.55 MW.

4.5.3 These wind mills are situated in the areas getting desired level of wind

flow namely Aralvoimozhi, Shencottah and Palghat Passes, during South-

west monsoon seasons. The TNEB get infirm power from these wind mills

during the period between May and September.

4.5.4 The generations from the Board’s windmills during the period from 2003-

04 were as below:

Table – 62 Wind generation from TNEB owned wind mills

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

1 Installed capacity in MW

19.355 19.355 19.355 19.355 17.55 17.55 17.55

2 Energy generated in MU

24.346 18.036 14.581 17.591 12.058 10.285 11.092

3 CUF (%) 14.36 10.64 8.60 10.38 7.84 6.69 7.21

4.5.5 The average generation in 2008-09 and 2009-10 i.e. after reduction in

generation capacity was 10.69 MUs.

4.5.6 The TNEB has projected a generation of 10 MUs for each of the control

period. This is accepted.

4.5.7 The total availability of energy from TNEB’s own generating stations will

be as below:

Table – 63 Total availability of energy from TNEB’s own generating stations

107

(In MUs)

2010-11 2011-12 2012-13 Sl. No.

Details

Gross Gen.

Aux. Net Gen.

Gross Gen.

Aux. Net Gen.

Gross Gen.

Aux. Net Gen.

1. Coal based Thermal Stations

21824 2009 19815 28816 2617 26199 34439 3101 31338

2. Gas based Thermal Stations

2461 144.35 2317 2619 154.35 2465 2619 154.35 2465

3. Hydel

Generation

4789 392 4397 4831 392 4439 4993 392 4601

4. Wind Mills 10 - 10 10 - 10 10 - 10

Total 29084 2545.35 26539 36276 3163.35 33113 42061 3647.35 38414

4.6 Determination of quantum of energy to be purchased:

Table – 64 Quantum of energy to be purchased

(In MUs)

Sl. No.

Details TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

1. Net Input Energy Requirement

74085 80012 86362 70933 74453 78196

2. Energy available in own generating stations

26879 33459 36836 26539 33113 38414

3. Balance energy to be purchased from external sources

47206 46553 49526 44394 41340 39782

108

CHAPTER 5

POWER PURCHASE

5.1 The TNEB has submitted that they source power from the Generating

Stations of National Thermal Power Corporation at Ramagundam and

Talcher, Neyveli Lignite Corporation’s Thermal Stations and Nuclear

Power Corporation’s power stations – Madras Atomic Power Station

(MAPS) at Kalpakkam and Kaiga Atomic Power Stations. They also get

special allocation from Talcher for pooling equivalent quantum of power

from NTPC’s Kayankulam CCGT power station. Apart from this TNEB

purchase power from seven Independent Power Producers (IPPs) in the

State, surplus power from Captive Power Plants (CPPs), Co-generations

and private Wind energy producers.

5.2 The energy availability from the above sources are arrived at as below:

5.3 Central Generating Station :

5.3.1 The availability of energy from CGS is projected with reference to the

Normative Annual Plant Availability Factor (NAPAF) specified in the CERC

(Terms and Condition of Tariff) Regulation, 2009. In respect of Nuclear

Power Generation, the energy entitlement is computed at NAPAF of 70%.

Table – 65 Entitlement of energy from Central Generating Stations

Allocated Capacity Sl. No.

Name of the Station

Installed Capacity (in MW) Firm

Allocation (in MW)

Allocation from Un- Allocated Share (in MW)

Total Allocated Capacity (in MW)

NAPAF %

Energy Entitle-ment on gross basis (in MU)

1. Neyveli TS-I 600 475 - 475 72 2996

2. Neyveli TS-II-Stg.-I

630 176 10 186 75 1222

3. Neyveli TS-II-Stg.-II

840 265 15 280 75 1840

4. Neyveli TS-I-Exp. 420 193 33 226 80 1584

5. NTPC-RSTPS- I & II

2100 470 58 528 85 3931

6. NTPC-RSTPS-III 500 118 14 132 85 983

7. NTPC – Talcher-II 2000 475 23 498 82 3577

109

8. Madras Atomic Project, Kalpakkam

440 328 2 330 70 2024

9. Kaiga Atomic Power Project

660 150 20 170 70 1042

10. External Assistance

23) NTPC – Eastern Region

Farakka (1.46%) 1600 23.3 0 23.3 85

Kahalgaon (1.44%)

840 12.1 0 12.1 85

Talcher-I (1.46%) 1000 14.6 0 14.6 82

} } } 368 } } }

11. Special Allotment 75 0 75 85 558

12. NTPC – Kayankulam – CCGTS

360 180 - 180 85 1340

Total 2955 175 3130 21465

5.3.2 The following Capacity additions have been proposed during 2010-11 to

2012-13 under Central Sector. The energy available from these additional

capacities is projected at 85% NAPAF for all Central Generating Stations

and Joint Venture Projects. The energy from Kudankulam APS is

projected at NAPAF of 85%. The projection for the proposed addition

from Kaiga APS and Kalpakkam APS is made at 70%

5.3.3 The available energy for the stations except Kaiga APS, NLC stage II

expansion and Simhadri is arrived at from the month following the latest

expected month of commissioning. In respect of Kaiga APS, the project

has not been commissioned as per schedule and the projection is now

made from April 2011. In respect of NLC, the projection for the 1st unit has

been made from Jan 2011 and for the 2nd unit from July 2011. In respect

of Simhadri, the projections are made from April 2011 and June 2011.

5.3.4 The energy availability is determined as below :

110

Table – 66 Projection of energy availability from Central Generating Stations

Energy availability (in MUs)

Sl. No.

Name of the Project

Installed Capacity

MW

Available

Capacity MW

NAPAF %

Latest expected month of

commissioning 2010-11

2011-12

2012-13

1. Kaiga Atomic Power Station – Stage-II - Unit-IV

220 36 70 May 2010 / April

2011

221 221

2. Neyveli TS-II-Expansion – Unit –I

250 163 85 June 2010 /

January 2011

299 1214

1214

3. Kudankulam APS Unit-I

1000 462 85 Dec. 2010 848 3440

3440

4. Simhadri Stage-II – Unit-III

500 95 85 Dec. 2010 / April

2011

707 707

5. Neyveli TS-II-Expansion – Unit –II

250 162 85 Feb. 2011 / July

2011

906 1206

6. Simhadri Stage-II – Unit-IV

500 95 85 May 2011 / July

2011

- 589 707

7. Kudankulam APS Unit-II

1000 463 85 June 2011 - 258

8

3447

8. NTPC-TNEB JV at Vallur Stage-I – Unit-I

500 375 85 Nov. 2011 - 926 2792

9. NTPC-TNEB JV at Vallur Stage-I – Unit-II

500 375 85 Dec. 2011 - 689 2792

10. PFBR, Kalpakkam

500 167 70 March 2012 - - 1024

11. NLC-TNEB JV at Tuticorin Unit-I

500 247 85 April 2012 - - 1688

12. NLC-TNEB JV at Tuticorin Unit-II

500 247 85 Feb. 2013 - - 156

13. NTPC-TNEB JV at Vallur Stage-I – Unit-III

500 375 85 Nov. 2012 - - 926

Total 3262 114

7

112

80

20320

5.4 Independent Power Producers (IPPs) :

5.4.1 There are 7 IPPs supplying power to TNEB under Power Purchase

Agreement (PPA).

5.4.2 The IPP generators are entitled for incentive for generation beyond

68.4932%.

111

5.4.3 The energy availability is arrived at 85% PLF from the IPPs as below :

Table – 67 Entitlement of energy from IPPs

Sl. No.

Station Installed Capacity in

MW

PLF% Energy Entitlement in MUs

1. G.M.R. Power Corpn. Pvt. Ltd. 196.00 85 1459

2. Samalpatti Power Co. Pvt. Ltd. 105.66 85 787

3. Madurai Power Corpn. Pvt. Ltd. 106.00 85 789

4. PP Nallur Power Gen. Co. Pvt. Ltd. 330.50 85 2461

5. ST-CMS Electric Co. Ltd. 250.00 85 1861

6. Aban Power Co. Ltd. 113.20 85 843

7. Penna Electric Co. Ltd. 52.80 85 393

Total 1154.16 8593

5.5 NCES and Infirm Sources : 5.5.1 Captive Power Plants

(1) The TNEB has been purchasing the excess power from the Captive

Power Plants of 214 MW capacity.

(2) The TNEB in the petition have projected the following quantum of

purchase from Captive Power Plants.

Table – 68 Projection of energy from CPPs by TNEB

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Purchase in MUs

711 828 779 671 571 371

(3) The actual purchase during the year 2009-10 was 630.00 MUs.

(4) The projection for the control period is approved.

5.5.2 Co-generation and Biomass Generation :

(1) The TNEB has been purchasing power from Bagasse Based

Cogeneration and Biomass based power plants. The capacity on

31.03.2010 was as below:

Biomass …. 137.05 MW

Cogen …. 559.90 MW

112

5.5.3 The TNEB has projected the following quantum of purchase from these

sources.

Table – 69 Projection of energy from Co-generation and biomass generation by TNEB

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Purchase from Cogeneration & Biomass generation in MUs

1451 1102 1250 1589 1252 889

5.5.4 As against the projected purchase of 1250 MUs in 2009-10, the actual

purchase during the year was 837.00 MUs. The actuals during the period

from 2007-08 to 2009-10 were fluctuating. The purchase for 2010-11 is

projected with 10% increase over the actuals in 2009-10.

5.5.5 The TNEB has not considered the purchase obligation from 183 MW of

generation capacity being established by co-operative sugar mills. The

capacity is likely to commence generation from July 2011.

5.5.6 The purchase from Cogen in 2009-10 is around 17% of the capacity.

Hence, the projection of purchase from additional capacity of 183 MW is

made at 17%. The purchase of energy from the additional capacity would

be as below:

2011-12 …. 136 MUs (50% of 273 MUs)

2012-13 …. 273 MUs

5.5.7 The TNEB has projected reduced purchases from these sources for 2011-

12 and 2012-13. As the purchase from these sources fall outside Merit

Order Despatch, the purchases have been projected at the available

capacity level.

5.5.8 The purchase from Bagasse Based Cogeneration and Biomass

generation is fixed as below :

Table – 70 Projection of energy from Co-generation and biomass generation by TNERC

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Bagasse Based Cogeneration & Biomass generation in MUs

1451 1102 837 921 1149 1387

113

5.6 Private Wind Mills :

5.6.1 The TNEB has submitted that there are 9160 WEG HT services for an

installed capacity of 4889.765 MW at the end of 2009-10 as below:

Table – 71 Wind energy installed capacity

Board Private Total

WEG 111 9049 9160

Capacity in MW 17.55 4872.215 4889.765

5.6.2 The TNEB has projected the following purchases from private wind mills

during the control period :

Table – 72 Projection of wind energy purchase by TNEB

Source Actuals BE Estimated Purchase

2007-08

2008-09

2009-10

2010-11 2011-12

2012-13

Private Wind

Mills (in

MUs)

6055 6645 8283 8452 8152 8152

5.6.3 As against the projected generation of 8283 MUs during the year 2009-10,

the actual generation from private wind mills was 8134.415 MUs, with an

increase of 22.4% over the generation in 2008-09. The installed capacity

also increased by 602.025 MWs.

5.6.4 The TNEB has reported that they expect a capacity addition of 645 MW in

2010-11. They have not furnished projected capacity addition for 2011-12

and 2012-13.

5.6.5 The TNEB has furnished month-wise capacity and generation details for

the FY 2007-08, 2008-09 separately for the wind mills in Tirunelveli and

Udumalpet areas. For 2009-10, the overall month-wise capacity addition

and generation have been furnished.

5.6.6 The month-wise Capacity Utilization Factor (CUF) are as below :

114

Table – 73 Month-wise Capacity Utilization Factor (CUF)

(CUF in %)

2007-08 2008-09 Month Udumalpet Tirunelveli Udumalpet Tirunelveli

2009-10

April 3.59 4.71 4.65 4.18 3.70

May 9.52 11.36 22.56 24.19 21.51

June 33.61 31.09 37.82 36.48 43.30

July 45.93 30.20 44.35 34.24 40.34

August 43.43 36.00 48.30 35.18 44.80

September 41.92 30.11 27.37 25.75 29.01

October 36.02 27.30 23.98 18.28 30.98

November 4.45 10.15 2.38 5.51 5.37

December 2.63 10.50 2.47 10.72 5.68

January 3.21 15.75 3.26 16.96 9.46

February 3.16 10.33 5.28 13.72 11.38

March 3.84 10.17 3.85 5.01 4.68

5.6.7 Based on month-wise generation, weighted average CUF for 2007-08 to

2009-10 were as below :

2007-08 …. 19.12%

2008-09 …. 18.91%

2009-10 …. 20.67%

5.6.8 The average of the above is 19.57%.

5.6.9 The capacity addition for 2011-12 and 2012-13 are assumed at 300 MW

each year.

5.6.10 The purchase from Private Wind Mills is projected as below :

Table – 74 Purchase from Private Wind Mills

Sl. No Particulars 2009-10 2010-11 2011-12 2012-13

1 Capacity at the end of the year (in MW)

4872.215 5517.215 5817.215 6117.215

2 CUF (in %) 19.57 19.57 19.57

3 Generation (in MU) 8134.415 9458 9973 10487

5.6.11 In para 8.18.4 of the comprehensive tariff order on wind energy (Order

No.1 of 2009, dated 20-03-2009), the Commission has fixed the

Renewable Energy Purchase Obligation at a minimum of 13% for 2009-10

and 14% for 2010-11. The details of actual energy purchase and

projection for 2009-10 and 2010-11 are as below:

115

Table – 75 Details of actual energy purchase and projection for 2009-10 and 2010-11

Sl. No Details 2009-10 2010-11 (Estimated)

1 Input energy (in MU)

67619 70933

2 Purchase from renewable (in MU)

8971 10379

3 RPO % 13.26 14.63

5.7 Determination of quantum of Power Purchase :

5.7.1 Regulation 75(1) of the TNERC (Terms and Condition for Determination of

Tariff) Regulation 2005, specifies the following:

“The Distribution Licensee shall procure power on least cost basis and

strictly on Merit Order Despatch and shall have flexibility to procure power

from any source in the country”.

5.7.2 The quantum of energy units required to be purchased has been derived

based on the Energy Input requirement for the control period less the

quantum of energy units generated, to be generated through TNEB’s own

thermal, hydel and wind energy generating stations.

5.7.3 The energy to be purchased from must run “station” such as Nuclear

Station (MAPS, KAPS, Kudankulam APS), infirm power sources such as

co-generation, captive wind mills is outside the Merit Order Despatch. The

energy available from ‘Must Run’ station will be as below:

Table – 76 Energy available from ‘Must Run’ Station (Nuclear Station)

Actuals Projection by TNERC Sl. No. Name of the Station

Energy Entitle-ment MU

2007-08 MU

2008-09 MU

2009-10 MU

Proposed by TNEB MU for control period

2010-11 MU

2011-12 MU

2012-13 MU

1. MAPS 2024 1064 904 1259 1431 1431 1431 1431

2. KAPS 1042 564 613 721 911 911 911 911

Additions

3. Kaiga APS 184 221 221

4. Kudankulam-I 848 3440 3440

5. Kudankulam-II 0 2588 3447

6. PFBR, Kalpakkam

0 0 1024

Total 3374 8591 10474

116

5.7.4 The quantum of power purchase through Merit Order ranking will be as

below :

Table – 77 Quantum of power purchase through Merit Order ranking

Description 2010-11 2011-12 2012-13

Energy input requirement in MU 70933 74453 78196

Less : Net energy available through own generation (Thermal, hydel and wind mill) in MU

26539 33113 38414

Energy to be purchased in MU 44394 41340 39782

Energy available from Nuclear, Infirm and NCES sources

14424 20284 22719

Energy to be purchased through Merit Order Ranking

29970 21056 17063

5.7.5 The Merit Order Ranking of various sources is shown below (The variable

cost includes fuel price adjustment also).

5.8 Merit Order Ranking

Table – 78 The Merit Order Ranking of various sources

Variable Cost (Rs./kWh)

Sl. No.

Power Purchase Source

2008-09 2009-10 As per latest invoice

Merit Order Ranking

1. Neyveli TS-I 1.37 1.48 1.48 8

2. Neyveli TS-II-Stage -I 1.22}

3. Neyveli TS-II-Stage -II 1.32}

1.345

1.36

6

4. Neyveli TS-Expansion 1.18 1.26 1.27 4

5. NTPC SR I & II 1.35 1.42 1.34 5

6. NTPC SR III 1.20 1.28 1.47 7

7. NTPC – Talcher-II 0.96 1.06 0.86 1

8. NTPC – ER 1.41 1.79 1.95 10

9. NTPC – Kayankulam 7.29 6.29 7.30 15

IPPs

10. G.M.R. Power Corpn. Pvt. Ltd.

4.97 6.01 6.58 14

11. Samalpatti Power Co. Pvt. Ltd.

5.08 6.05 6.23 13

12. PP Nallur Power Gen. Co. Pvt. Ltd.

6.19 5.42 3.13 11

13. Madurai Power Corpn. Pvt. 5.20 5.72 6.17 12

117

Ltd.

14. ST-CMS Electric Co. Ltd. 1.20 1.50 1.48 9

15. Aban Power Co. Ltd. 0.72 0.85 0.88 2

16. Penna Electric Co. Ltd. 0.83 1.06 1.14 3

5.8.1 M/s PPN Power Generating Co. Ltd. have been using more gas from

11/2009 and hence the merit order has been arranged with the latest

invoice, taking the per unit variable cost as Rs. 3.13 / kWh in December

2009 against Rs.6.19/kWh in 2008-09.

5.8.2 The energy unit available to TNEB from each of the external sources

including proposed additional capacity has been arrived with reference to

the NAPAF and quantum of power purchase during previous years. The

energy available from infirm sources such as Biomass Plants, Bagasse

based cogeneration plants and wind mills has been arrived at based on

past trend and proposed capacity addition.

5.8.3 The quantum of energy to be purchased from all external sources

including nuclear and NCES sources is fixed as detailed below

considering the Merit Order Ranking:

Table – 79 Quantum of energy to be purchased from all external sources

(in MUs)

TNEB TNERC Sl. No.

Stations Energy Entitlement

2009-10 2010-

11 2011-12

2012-13

2010-11

2011-12

2012-13

CGS

1. Neyveli TS-I 2996 3270 3027 3027 3027 3250 2996 2996

2. Neyveli TS-II

3062 3001 2842 2842 2842 2842 2842 2842

3 Neyveli TS-Expansion

1584 1485 1434 1434 1434 1434 1434 1434

4. NTPC SR I & II

3931 4090 3913 3913 3913 3913 3913 3913

5. NTPC SR III 983 1101 965 965 965 965 965 965

6. NTPC – Talcher-II

3577 3802 3636 3636 3636 3636 3577 3577

7. NTPC – ER & Spl allotment

926 498 743 743 743 743 743 743

8. NTPC – Kayankulam

1340 1259 1076 926 926 1076 926 926

9 Maps 2024 1259 1431 1431 1431 1431 1431 1431

10 Kaiga 1042 721 911 911 911 911 911 911

118

CGS Additions

11 NLC TS II 1788 1750 1750 299 1750 1750

12 NTPC Simhadri

872 1026 872 1026

13 NTPC –TNEB JV at Vallur

864 3240 5468 1615 6510

14 NLC – TNEB JV at Tuticorin

400 1601 - - 1688

15 Kaiga APS 221 221

16 Kudankulam APS

2824 3137 3766 848 3137 3766

17 Kalpakkam PFBR

902 902 1024

Total CGS 21465 20486 25454 30129 34341 21348 27333 35723

IPPs

18 GMR 1176 1145 1418 900 750 1300 300 300

19 Samalpatti 634 481 722 300 300 300 150 150

20 PPN 1983 2260 2259 2000 1600 2259 1406 1441

21 Madurai 636 467 540 300 300 540 179 151

22 ST-CMS 1500 1655 1809 1700 1574 1809 1574 1574

23 ABAN 679 677 850 850 850 850 850 850

24 Penna 317 339 400 400 400 400 400 400

Total IPP 6925 7024 7998 6450 5774 7458 4859 4866

25 CPPs 671 571 371 671 571 371

26 Biomass & Co-generation

1589 1252 889 921 1149 1387

27 Private Windmills

8452 8152 8152 9458 9973 10487

Total 28390 37111 44164 46554 49527 39856 43885 52834

5.8.4 The energy availability is matched with the energy input requirement as

below:

Table – 80 Matching of energy availability with energy requirement

Description 2010-11 2011-12 2012-13

Energy input requirement in MU 70933 74453 78196

Energy required for demand supply mis match (in MU)

2000 2000

Total Energy required (in MU) 70933 76703 80696

Less : Net energy available through own generation (Thermal, hydel and wind mill) in MU

26539 33113 38414

Energy to be purchased from external sources (in MU)

39856 43885 52834

Energy to be procured in the open market (in MU)

4538 2250 2000

Energy to be sold in the open market (in MU) 4545 15052

119

5.8.5 The TNEB may have to procure power to meet the short term requirement

as well as to fill the demand supply mis-match from the open market and

also to sell the surplus energy available at any point of time in the open

market.

5.8.6 The estimate for 2011-12 and 2012-13 will be reviewed and re-fixed

during the truing up of actuals for 2010-11subject to prudence check.

5.9 Power Purchase Cost

5.9.1 Regulation 75 (3), 75 (4) and 75 (5) in TNERC Tariff Regulations are

extracted below:

“(3) The cost of power purchased from Central Generating Company

shall be worked out based on tariff determined by the Central

Electricity Regulatory Commission.

(4) The cost of power purchased from IPPs shall be considered based

on Power Purchase Agreement.

(5) In case of power purchased from Captive Generators and other non

conventional energy sources, the cost shall be worked out as per the

policy approved by the Commission”.

5.9.2 The following procedures have been adopted to determine the cost of

power purchase:

(1) The validity of tariff determined by the CERC for the period from

2004-05 to 2008-09 is already lapsed and the Central Generating

Companies (NTPC and NLC) have filed petitions before the CERC

for determination of Tariff applicable for the period from 01-04-2009

to 31-03-2014.

(2) The NTPC has sought for single uniform rate of energy charges for

all the five years with fuel cost adjustments and different annual

capacity charges for each year.

(3) NLC has sought for separate energy charges and capacity charges

for each year of the five years period.

120

(4) In respect of NLC TS I which is being operated beyond its life, NLC

has sought for special allowance in addition to enhanced capacity

charges and energy charges.

(5) Tariff proposed in the petition before the CERC with 5% escalation

on energy charges to take care of fuel cost adjustments has been

considered for the purpose of estimating the cost of power

purchase from the CGS (except nuclear stations). The special

allowance proposed for NLC TS I is not considered.

(6) The Nuclear Power Corporation of India Ltd, has indicated that the

tariff for the Kudankulam Atomic power project and the PFBR

project at Kalpakkam would be around Rs.3.50 per unit and this

rate has been adopted for estimation.

(7) For Joint Venture projects, the levelized tariffs indicated in the

agreements have been adopted to estimate the power purchase

cost.

(8) For new NTPC station at Simhadri (expansion) and NLC II

Expansion, the rates for the similar capacity stations at these

locations have been adopted.

(9) The cost of power purchase from IPPs has been estimated with

reference to PPAs.

(10) The cost of power from CPP, Biomass, Co-gen and windmills has

been estimated with reference to applicable Tariff Order of the

Commission.

(11) The Transmission charges payable to PGCIL have been estimated

with reference to the petition before the CERC.

(12) During 2009-10, the TNEB has purchased power in open market at

a price ranging from Rs.5.08 per unit to Rs.10.46 per unit with an

over all average of Rs.5.49 per unit. It is seen from the data

available in public domain that the prevailing rates of UI and Power

Exchange were in the range of Rs.3.00 to Rs.4.00 per unit during

first quarter of 2010-11, which is the peak season for the country as

121

a whole. Accordingly, it will be appropriate to estimate the market

power procurement at an average rate of Rs.5.00 per unit and the

sale of surplus power is also to be considered at the same rate.

(13) The surplus power projected for 2011-12 and 2012-13 is accounted

for average power purchase cost.

(14) The Commission approves the following power purchase cost for

the period from 2010-11 to 2012-13.

Table – 81 TNERC approved power purchase cost for the year 2010-11

Year 2010-11

Sl. No Stations Units (in MU)

Variable cost (in Ps/unit)

Total variable cost (Rs.in Crores)

Fixed charges (Rs.in Crores)

Total Cost (Rs.in Crores)

CGS

1 Neyveli TS-I 3250 202.65 658.61 340.35 998.96

2 Neyveli TS-II 2842 190.00 539.98 173.09 713.07

3 Neyveli TS-Expansion 1434 170.00 243.78 172.85 416.63

4 NTPC SR I & II 3913 156.73 613.28 194.44 807.72

5 NTPC SR III 965 114.25 110.25 91.67 201.92

6 NTPC – Talcher-II 3636 120.69 438.83 285.11 723.94

7 NTPC – ER & Spl allotment

743 190.68 141.68 28.03 169.71

8 NTPC – Kayankulam

1076 617.59 664.53 131.76 796.29

9 Maps

1431 193.11 276.34 276.34

10 Kaiga 911 320.18 291.68 291.68

CGS Additions

11 NLC TS II Expansion 299 202.62 60.58 30.61 91.19

12 NTPC Simhadri

13 NTPC - TNEB JV at Vallur

14 NLC - TNEB JV at Tuticorin

15 Kaiga APS

16 Kudankulam APS 848 350.00 296.80 296.80

17 Kalpakkam PFBR

18 Power Grid 512.00 512.00

Total CGS 21348 4336.35 1959.91 6296.26

IPPs

14 GMR 1300 658.22 855.69 172.76 1028.45

15 Samalpatti 300 703.66 211.10 99.54 310.64

16 PPN 2259 312.77 706.55 297.04 1003.59

17 Madurai 540 616.74 333.04 107.82 440.86

18 ST-CMS 1809 147.68 267.15 258.91 526.06

122

19 ABAN 850 226.00 192.10 192.10

20 Penna 400 274.00 109.60 109.60

Total IPP 7458 2675.22 936.07 3611.29

21 Traders 4538

500.00 2269.00

2269.00

22 CPPs 671 384.00 257.66 257.66

23 Biomass 111 466.00 51.73 51.73

24 Co-Gen 810 392.00 317.52 317.52

25 Private Windmills 9458 359.40 3399.21 3399.21

Total 44394 13306.69 2895.98 16202.67

Table – 82 TNERC approved power purchase cost for the year 2011-12

2011-12

Sl. No.

Stations Units (in MU)

Variable cost (in Rs/unit)

Total variable cost (Rs.in Crores)

Fixed charges (Rs.in Crores)

Total Cost (Rs.in Crores)

CGS

1 Neyveli TS-I 2996 218.40 654.33 353.18 1007.51

2 Neyveli TS-II 2842 200.55 569.96 181.91 751.87

3 Neyveli TS-Expansion 1434 182.07 261.09 199.97 461.06

4 NTPC SR I & II 3913 156.73 613.28 204.80 818.08

5 NTPC SR III 965 114.25 110.25 91.94 202.19

6 NTPC – Talcher-II 3577 120.69 431.71 287.32 719.03

7 NTPC – ER & Spl allotment

743 190.68 141.68 28.95 170.63

8 NTPC – Kayankulam 926 617.59 571.89 131.89 703.78

9 Maps 1431 193.11 276.34 0.00 276.34

10 Kaiga 911 320.18 291.68 0.00 291.68

CGS Additions 0.00

11 NLC TS II 1750 202.62 354.59 211.00 565.59

12 NTPC Simhadri 872 171.86 149.86 135.00 284.86

13 NTPC –TNEB JV at Vallur

1615 246.00 397.29 0.00 397.29

14 NLC – TNEB JV at Tuticorin

- 292.00 0.00 0.00

15 Kaiga APS 221 350.00 77.35 0.00 77.35

16 Kudankulam APS 3137 350.00 1097.95 0.00 1097.95

17 Kalpakkam PFBR 350.00 0.00 0.00

18 Power Grid 538.00 538.00

123

Total CGS 27333 5999.25 2363.96 8363.21

IPPs

19 GMR 300 691.13 207.34 174.45 381.79

20 Samalpatti 150 738.84 110.83 99.08 209.91

21 PPN 1406 328.41 461.74 292.80 754.54

22 Madurai 179 647.58 115.92 105.37 221.29

23 ST-CMS 1574 155.06 244.07 250.11 494.18

24 ABAN 850 237.30 201.71 201.71

25 Penna 400 287.70 115.08 115.08

Total IPP 4859 1456.68 921.81 2378.49

26 Traders 2000 500.00 1000.00 1000.00

27 CPPs 571 384.00 219.26 219.26

28 Biomass 111 480.30 53.31 53.31

29 Co-generation 1038 491.00 509.66 509.66

30 Private Windmills 9973 359.40 3584.30 3584.30

Total 45885 12822.46 3285.77 16108.23

Less: Sale of surplus power

4545 500.00 2272.50 2272.50

Net power purchase cost

41340 10549.96 3285.77 13835.73

Table – 83 TNERC approved power purchase cost for the year 2012-13

2012-13

Sl. No. Stations Units (in MU)

Variable cost (in Rs/unit)

Total variable cost (Rs.in Crores)

Fixed charges (Rs.in Crores)

Total Cost (Rs.in Crores)

CGS

1 Neyveli TS-I 2996 235.20 704.66 438.96 1143.62

2 Neyveli TS-II 2842 200.55 569.96 190.24 760.20

3 Neyveli TS-Expansion 1434 190.68 273.44 201.46 474.90

4 NTPC SR I & II 3913 156.73 613.28 211.40 824.68

5 NTPC SR III 965 114.25 110.25 91.37 201.62

6 NTPC – Talcher-II 3577 120.69 431.71 288.29 720.00

7 NTPC – ER & Spl allotment

743 190.68 141.68 30.01 171.69

124

8 NTPC – Kayankulam 926 617.59 571.89 111.13 683.02

9 Maps 1431 193.11 276.34 0.00 276.34

10 Kaiga 911 320.18 291.68 0.00 291.68

CGS Additions 0.00 0.00

11 NLC TS II 1750 202.62 354.59 242.00 596.59

12 NTPC Simhadri 1026 180.45 185.14 135.00 320.14

13 NTPC –TNEB JV at Vallur

6510 246.00 1601.46 0.00 1601.46

14 NLC – TNEB JV at Tuticorin

1688 292.00 492.90 0.00 492.90

15 Kaiga APS 221 350.00 77.35 0.00 77.35

16 Kudankulam APS 3766 350.00 1318.10 0.00 1318.10

17 Kalpakkam PFBR 1024 350.00 358.40 0.00 358.40

18 Power Grid 0 0.00 564.90 564.90

Total CGS 35723 8372.82 2504.76 10877.58

IPPs

19 GMR 300 725.69 217.71 176.22 393.93

20 Samalpatti 150 775.78 116.37 99.08 215.45

21 PPN 1441 344.83 496.90 290.89 787.79

22 Madurai 151 679.96 102.67 105.18 207.85

23 ST-CMS 1574 162.81 256.26 241.31 497.57

24 ABAN 850 244.42 207.76 0.00 207.76

25 Penna 400 296.33 118.53 0.00 118.53

Total IPP 4866 1516.20 912.68 2428.88

26 Traders 2000 500.00 1000.00 1000.00

27 CPPs 371 384.00 142.46 0.00 142.46

28 Biomass 111 480.30 53.31 0.00 53.31

29 Co-generation 1276 491.00 626.52 0.00 626.52

30 Private Windmills 10487 359.40 3769.03 0.00 3769.03

Total 54834 15480.34 3417.44 18897.78

31

Less: Sale of surplus Energy

15052 500.00 7526.00 7526.00

Net Power Purchase Cost

39782 7954.34 3417.44 11371.78

125

(15) Under Regulation 3 (vii) of MYT Regulations, the variation on account of

sales and power purchase shall be reviewed at the end of each year of the

control period based on audited accounts of the licensee and prudence

checks by the Commission.

126

CHAPTER 6

EXPENDITURE

6.1 Segregation of Accounts

6.1.1 The TNEB is functioning as an integrated utility and maintain consolidated

accounts for all the functions.

6.1.2 In view of the provisions contained in the Tariff Regulations, the

Commission is required to determine generation tariff, tariff for Intra-State

transmission and retail tariff for distribution separately. It is therefore

imperative to segregate the accounts function wise.

6.1.3 The Commission in its letter dated 22-01-2010, directed the TNEB to

furnish split up details for variable cost and fixed capacity charges (cost

statement) for TNEB’s own generating stations on normative basis.

6.1.4 The Commission also directed the TNEB in letter dated 22-01-2010 to

furnish the wheeling charges, surcharge / additional surcharge for each

year of the control period for the Commission’s consideration and

approval.

6.1.5 The Commission in letter dated 19-02-2010, directed that TNEB may file

separate statement for thermal, gas (Station wise) and hydro stations in

the formats specified in the tariff Regulations duly segregating loans and

assets and allocating proportionate interest and finance charges, RoE,

etc.

6.1.6 The TNEB in letter dated 24-02-2010, submitted the asset details and

expenses for total annual transmission charges.

6.1.7 The TNEB in letter dated 18-04-2010, submitted the station wise summary

of tariff proposal, normative parameters considered for tariff computation,

assets and interest workings and O & M expenses. The variable cost of

each station was not computed and furnished.

6.1.8 In letter dated 23-04-2010, the TNEB has submitted the details for

calculation of wheeling charges.

127

6.1.9 The segregation of gross fixed assets is required to compute the various

components constituting fixed (capacity) charges.

6.1.10 In the Annual Statement of Accounts of TNEB, gross fixed assets and

depreciation are exhibited function wise. The TNEB has stated that they

have adopted the following assumptions in segregating the expenditures.

6.1.11 The borrowings and interest on borrowings (for which accounts are

maintained centrally at Head Quarters) have been allocated between all

the functions in the ratio of gross fixed assets.

6.1.12 The TNEB has separate accounts for each generating station. Out of the

total operation and maintenance (O & M) expenses in the consolidated

annual statement of accounts, the expenses relating to generating stations

have been segregated based on the expenses recorded in the balance

sheet of respective generation station. The balance O & M expenses

relating to transmission and distribution have been allocated in proportion

to the gross fixed assets of these functions.

6.1.13 Taking into account information in this Order, TNEB shall file a petition for

determination of wheeling charges, surcharge / additional surcharge.

6.2 Commission’s Analysis and decision on Allocation of expenditures to

various functions

6.2.1 Capital Cost / Fixed Assets

6.2.1.1 The TNEB has submitted the following information on gross fixed

assets and net fixed assets:

Table – 84 Details of gross and net fixed assets furnished by TNEB

(Rs. In Crores)

Sl. No.

Details 2007-08 (Audited A/Cs)

2008-09 (Prel. A/Cs)

2009-10 2010-11 2011-12 2012-13

1 Gross Fixed Assets at the beginning

21565.91

23503.56

25016.17

27329.83

29874.97

32676.42

2 Addition during the year

4585.69

2163.98

2313.66

2545.14

2801.45

3085.38

3 Deductions

128

during the year 2648.04 651.37 0 0 0 0

4 Gross Fixed Assets at the end of the year

23503.56

25016.17

27329.83

29874.97

32676.42

35761.80

5 Net depreciation for the year

666.40

774.43

992.49

1086.36

1189.81

1303.86

6 Accumulated Depreciation

9400.34

10174.77

11167.26

12253.62

13443.43

14747.29

7 Net Fixed Assets 14103.22 14841.40 16162.57 17621.35 19232.99 21014.51

8 Work – in - Progress

3008.37

4032.78

4032.78

4032.78

4032.78

4032.78

6.2.2 Addition to capital cost / additional capitalization

6.2.2.1 The TNEB has proposed addition to Gross Fixed Assets (additional

capitalization) for the control period without identifying the specific

asset.

6.2.2.2 The TNEB maintain the value of work in progress (pending

capitalization) at the end of each year of control period at Rs.4032.78

Crores.

6.2.2.3 Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)

of the Tariff Regulation under MYT framework specifies that the

licensee shall get the capital investment plan approved by the

Commission before filing ARR and Application for determination of

Tariff. The TNEB has not complied with this provision.

6.2.2.4 The TNEB submitted the capital investment plan for 2009-10 and

2010-11 in their letter dated 17-12-2009 and the capital investment

plan for 2011-12 and 2012-13 in letter dated 31-03-2010 without

capitalization schedule.

6.2.2.5 The TNEB has proposed capital investments for the control period as

below:

Table – 85 Capital investments proposed by TNEB

(Rs.in Crores)

Project Details 2010-11 2011-12 2012-13

Generation

MTPS Stage III (1 X 600 MW) 2090.00 997.52

NCTPS – Stage II unit I (1 X 600 MW) 2508.22

NCTPS – Stage II unit II (1 X 600 MW)

1163.00

129

ETPS – Annexure 28.00

SEZ at Kattupalli (2 X 800 MW) 7.17 804.93 8801.00

Bhavani Kattalai – Barrage II (2 X 15 MW)

57.26 4.86

Bhavani Kattalai – Barrage III (1 x 30 MW)

63.29 4.22

Bhavani – Barrage I SHEP (1 x 10 MW)

25.22

Bhavani – Barrage II SHEP (1 x 10 MW)

24.98

Periyar Vaigai SHEP I (2 x 2 MW) 3.30

Periyar Vaigai SHEP II (2 x1.25 MW) 7.52

Periyar Vaigai SHEP III (2 x 2 MW) 4.27

Periyar Vaigai SHEP IV (2 x 1.25 MW) 6.58

Renovation & Modernization

TTPS 142.02 100.87

MTPS 43.70 63.70

Periyar hydel generation 57.10

Total generation 2289.59 5753.57 8965.57

Transmission 1720.72 1600.00 1760.00

Distribution 771.59 1461.43 1692.85

Total 4781.90 8815.00 12418.42

6.2.2.6 According to TNEB, the projects, (except, the project at ETPS

(Annexure) and SEZ at Kattupalli) are scheduled to be commissioned

during the control period.

6.2.2.7 Regulation 6 (7) (i) (a) of the TNERC Tariff Regulations, 2005 specifies

the following:

“A generation company or a licensee may make an application as per

Appendix – I to these Regulations, for determination of provisional tariff

in advance of the anticipated date of completion of the project, based

on the capital expenditure actually incurred upto the date of making of

the application or a date prior to making of the application, duly audited

and certified by the statutory auditors, and the provisional tariff shall be

charged from the date of commercial operation of the respective units

of the generation station or the line or sub-station of the transmission

system.”

130

6.2.2.8 The TNEB had neither sought prior approval of their capital investment

plan nor applied for determination of tariff in advance for the above

generating stations. However, the Commission is required to determine

tariff for the new generating stations under Regulation 43 and hence,

the capital costs of these projects are also required to be ascertained

by the Commission.

6.2.2.9 The capital cost of the above projects as furnished in the capital

investment plan are as below:

Table – 86 Capital Cost of the New Generation Projects

Sl. No Projects Estimated capital cost

(Rs in Crores)

Cost per MW

(Rs.in Crores)

1 MTPS Stage III (1 X 600 MW) 3552.13 5.92

2 NCTPS – Stage II unit I (1 X 600 MW) 3097.09 5.16

3 NCTPS – Stage II unit II (1 X 600 MW) 2718.75 4.53

4 Bhavani Kattalai – Barrage II (2 X 15 MW) 400.59 13.35

5 Bhavani Kattalai – Barrage III (1 x 30

MW)

396.60 13.22

6 Bhavani – Barrage I SHEP (1 x 10 MW) 141.380 14.14

7 Bhavani – Barrage II SHEP (1 x 10 MW) 151.73 15.17

8 Periyar Vaigai SHEP I (2 x 2 MW) 49.19 12.30

9 Periyar Vaigai SHEP II (2 x1.25 MW) 40.07 16.028

10 Periyar Vaigai SHEP III (2 x 2 MW) 58.84 14.71

11 Periyar Vaigai SHEP IV (2 x 1.25 MW) 46.66 18.664

6.2.2.10 The estimated per MW capital of hydro generating plant is very high.

The original cost of the small hydro projects per MW approved by the

CEA was in the range of Rs. 3.30 to Rs.6.00 Crores. The TNEB has

explained that the increase in cost is due to escalation, tender

premium and variations in technical parameters of Weir and power

house.

6.2.2.11 The Commission in the Power Procurement from New and Renewable

Sources of Energy Regulations, 2008.specifies the following :

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“The Commission shall by a general or specific order, determine the tariff for

the purchase of power from each kind of new and renewable sources based

generators by the distribution licensee. In case of small hydro projects with a

capacity of more than 5 MW but not exceeding 25 MW capacities

Commission decides the tariff on case to case basis”.

6.2.2.12 The Periyar Vaigai small hydro electric projects under execution by

TNEB are of capacity of less than 5 MW.

6.2.2.13 The CERC in CERC (Terms and conditions for tariff determination for

Renewable energy sources) Regulations 2009 has specified the

normative capital cost of the small hydro projects for the control period

2009-10 as below:

Table – 87 CERC’s Normative Capital Cost of the Small Hydro Projects

Capacity Below 5 MW 5 MW and above

Base capital cost (Rs in lakhs / MW)

550.00

500.00

6.2.2.14 The capital cost for the subsequent year computed as per the capital

cost indexation mechanism detailed in the CERC’s Regulation is

Rs.561.204 lakhs / MW and Rs. 509.79 lakhs / MW for the project

below 5 MW and above 5 MW respectively.

6.2.2.15 The capital investment plan requires further analysis and explanation

from TNEB before according approval of cost proposed by TNEB.

Pending approval, the provisional cost is considered as below:

(1) Thermal stations - MTPS stage III – Rs.5.92 Crores / MW (with

cooling tower) and NCTPS stage II – Rs.4.85 Crores / MW

(without cooling tower)

(2) Hydro station - upto 5 MW Rs.561.204 lakhs / MW and

Above 5 MW Rs.509.796 lakhs / MW

(3) The capitalization of transmission and distribution are projected

as per the capital investment plan

(4) The assets like 230 KV SS, 110 KV SS and EHT lines established

to evacuate the power from private wind mills are held as wind

132

mill assets, are allocated to transmission. The expenditures on

EHT sub-station proposed by WEDC to evacuate wind power

have also been projected as transmission asset.

(5) The balance in work-in-progress at the end of 2008-09 and the

capital expenditure during 2009-10 have also been considered to

arrive at the gross fixed assets for the control period.

6.2.2.16 The TNEB in the statement showing gross fixed assets and depreciation

furnished with letter dated 18-04-2010, proposed the following addition

to fixed assets of the existing generating stations during the control

period:

Table – 88 Addition to Fixed Assets by TNEB to the existing generating stations

(Rs.in Crores)

Sl. No Stations 2010-11 2011-12 2012-13

1 ETPS 31.50 32.57 33.67

2 NCTPS 27.55 27.94 28.31

3 MTPS 5.63 6.15 6.18

4 TTPS 58.87 135.53 105.00

5 BBGTPS 0.41 0.42 0.42

6 Kovilkalappal 63.63 73.09 83.94

7 Valuthur 118.11 140.40 166.90

8 Hydro Generating stations under Erode

6.36 6.42 6.48

9 Hydro Generating stations under Kadamparai

1.69 1.70 1.71

10 Hydro Generating stations under Kundah

16.37 16.65 16.95

11 Hydro Generating stations under Tirunelveli

33.63 37.50 41.84

Total 363.75 478.37 491.4

6.2.2.17 Perusal of previous annual statement of accounts of TNEB shows that

such additions happen year on year with un-capitalized expenditure on

work-in-progress (WIP) at the end of each year. Any addition to

existing asset will have its impact on tariff.

6.2.2.18 Under Regulation 19 (1) (vi), the capitalization of additional work can

be allowed only if such works have become necessary for efficient and

successful operation of the generating station.

6.2.2.19 The above additions and also the proposed expenditure on renovation

and modernization have not been considered as the necessity for the

133

expenditure has not been explained in the petition. The TNEB shall

furnish a separate proposal for approval of the additional capitalization

with details of assets to be replaced.

6.2.2.20 The value of gross fixed assets as per the audited accounts for the

year 2007-08 and the preliminary accounts for the year 2008-09 have

been considered for projecting the fixed asset value for the control

period duly taking into account the work in progress as on 31-03-2009,

capital investments plan and capital expenditure plan furnished in the

capital investment plan for 2010-11, 2011-12 and 2012-13.

6.2.2.21 The capital expenditure furnished for ETPS annex and SEZ at

Kattupalli have not been considered as the projects have not been

projected as capacity addition.

6.2.3 The Commission fixes the Gross Fixed Assets (GFA) for the control period

as below:

Table – 89 Gross Fixed Assets (GFA) fixed by the Commission

(Rs.in Crores)

Sl. No Particulars 2009-10 2010-11 2011-12 2012-13

1

Value of Asset

at the beginning 25016.17 27655.96 30018.51 43253.69

2

Additions

during the year 2639.79 2362.55 13235.18 1863.19

3

Asset at the

end of the year 27655.96 30018.51 43253.69 45116.88

4 WIP at the end 4782.77 2362.55 2791.09 4978.62

6.2.4 The GFA at the end of each year of the control period is allocated to

different functions as below:

134

Table – 90 Allocation of Gross Fixed Assets to different functions of TNEB

(Rs.in Crores)

Functions 2010-11 2011-12 2012-13

Generation

1 ETPS 961.60 961.60 961.60

2 NCTPS 1969.76 1969.76 1969.76

3 MTPS 982.31 982.31 982.31

4 TTPS 1799.23 1799.23 1799.23

5 NCTPS II 6054.35 6054.35

6 MTPS II 3697.81 3697.81

I Total Thermal 5712.90 15465.06 15465.06

1 BBGTPS 548.58 548.58 548.58

2 Kuttalam 346.14 346.14 346.14

3 Kovilkalappal 373.11 373.11 373.11

4 Valuthur 798.98 798.98 798.98

II Total Gas 2066.81 2066.81 2066.81

1 Erode 719.65 1123.24 1123.24

2 Kadamparai 348.14 348.14 348.14

3 Kundah 908.35 908.35 908.35

4 Tirunelveli 317.76 341.13 341.13

III Total Hydro 2293.90 2720.86 2720.86

V Total Gen Assets 10073.61 20252.73 20252.73

1 Tirunelveli - Wind 145.31 145.31 145.31

2 Udumalpet - Wind 90.32 90.32 90.32

IV Total Wind 235.63 235.63 235.63

V Total Generation 10325.69 20504.81 20504.81

VI Transmission 8520.58 10241.30 11012.89

VII Distribution 11188.69 12524.02 13615.62

VIII Grand Total 30018.51 43253.68 45116.87

6.3. Interest on Loan Capital:

6.3.1 Regulation 23 (interest and Finance charges on loan capital) in chapter III

of the Tariff Regulation specifies the following:

(a) Interest on loan capital shall be computed loan wise on the loan

arrived at in the manner set out in Regulation 21.

135

6.3.2 Regulation 21 specifies that where equity employed is more than 30% (of

capital employed) the amount of equity shall be limited to 30% and the

balance amount shall be considered as loans, advanced at the weighted

average rates of interest and for weighted tenure of the long term debt

component of the investment.

6.3.3 As the equity is less than 30%, carrying forward of additional equity to loan

account does not arise.

6.3.4 The TNEB furnished the calculation of loan wise interest statement in

Form 16 of ARR.

6.3.5 The loan wise interest as claimed by TNEB is as below:

Table – 91 Loan wise interest claimed by TNEB (Rs.in Crores)

2010-11 2011-12 2012-13

Institutions Outstanding at the end of the

year

Interest payable

Outstanding at the end of the

year

Interest payable

Outstanding at the end of the

year

Interest payable

Public TNEB Bonds

3294.68 362.42 4061.09 446.72 4991.09 549.02

LIC 1277.16 140.49 1218.80 134.07 1601.30 176.14

REC & REC/Bank

5989.32 658.83 7580.67 833.87 8310.39 914.14

CIA 120.45 13.25 120.45 13.25 120.45 13.25

PFC 3118.60 343.05 4018.10 441.99 3604.10 396.45

PFC/ADB 0.00 0.00 0.00

TNPFC 7600.41 836.04 8861.73 974.79 11288.06 1241.69

NABARD 43.50 4.78 10.30 1.13 -21.32 -2.34

TNPFC Lease 0.00 0.00 0.00 0.00 0.00 0.00

MTL 4267.06 469.38 4873.72 536.11 5845.98 643.06

ICICI/STL 1000.00 113.30 1000.00 113.30 1000.00 113.30

APDRP 205.25 22.58 189.44 20.84 171.27 1.74

PMGY 19.28 2.12 17.56 1.93 15.92 0.19

HUDCO 1872.17 205.94 2437.41 268.11 2881.77 316.99

RGGY 42.33 4.66 42.33 4.66 74.13 8.15

Security Deposit 236.78 246.25 256.10

Interest on GPF & Hydro Balancing fund

116.05 120.69 125.52

136

Other interest 407.84 424.16 441.12

Total 28850.21 3937.51 34431.60 4581.87 39883.14 5194.52

Less: Capitalizations

472.50 549.82 623.34

Net Interest & Finance charges

28850.21 3465.01 34431.60 4032.05 39883.14 4571.18

6.3.6 On the direction of the Commission in letter dated 22-01-2010 and 19-02-

2010, the TNEB furnished the statements showing the function wise loan

allocation in letter dated 24-02-2010 for transmission and in letter dated

18-04-2010 for generation.

6.3.7 Raising of debts through TNEB bonds and loans from financial institutions,

their servicing, accounting etc are done centrally at headquarters of

TNEB.

6.3.8 The TNEB has allocated the loans based on the value of GFA. However,

the loans from PMGVY and RGGVY that are exclusively for distribution

have been allocated fully to distribution. REC is financing NCTPS

expansion (Stage II) also and hence, loan from REC is allocated to both

generation and distribution. The loans from APDRP that are both for

Transmission and Distribution have been allocated to these functions.

6.3.9 The TNEB is borrowing funds to meet the repayment obligations, payment

of interest on borrowings, capital expenditure and also to meet the

revenue expenditure in view of consistent revenue deficit for the past

seven years.

6.3.10 In the ARR the TNEB has adopted a weighted average interest rate of

13.02% for TNEB bonds and 9.05% for loan from LIC. However, the

outstanding TNEB bonds carry interest rates ranging from 7% to 11.60%

as per the Annual Statement of Accounts 2007-08 and 2008-09. The loans

from LIC carry interest at 11%, 8.8%, 9.5% and 13%.

6.3.11 The Commission in letter dated 19-02-2010, directed the TNEB to furnish

the schedule of repayment of loan installments and payment of interest

with quantum for the existing loans and schedule of drawal, interest rate,

137

moratorium period and tenure of loan for the proposed borrowings, so as

to check the proposed interest expenditure.

6.3.12 The TNEB in letter dated 07-04-2010, furnished the redemption schedule

for TNEB bonds, repayment schedule for PFC and REC loans, schedule

of repayment of principal and payment of interest for LIC loans, TNPFC

and other loans. All these details were furnished only for existing loans.

The schedule of drawal, etc for the proposed borrowings were not

furnished.

6.3.13 The projected borrowings and interest rates were discussed with the

officials of TNEB and the details were obtained.

6.3.14 The outstanding loan and interest thereon has been allocated on net asset

basis after check. The outstanding loan at the end of the financial year

2009-10 furnished by the TNEB was revised taking into account, the

actual borrowing and repayment during the year 2009-10.

6.3.15 The TNEB has claimed Rs.236.78 Crores, Rs. 246.25 and Rs.256.10

Crores as Interest on security deposit for the control period. The adequacy

of security deposits from consumers who are billed monthly is reviewed

every year and that of consumers who are billed bi-monthly is reviewed

once in two years. The TNEB in letter dated 07-04-2010 have projected

Rs.510.47 Crores, Rs.547.58 Crores and 594.92 Crores for control

periods as addition to security deposit. The review of past additions to

security deposit shows that the projections are not correct and also the

interest on security deposit based on such addition is much higher. The

amount claimed by TNEB is accepted and this will be reviewed at the time

of truing up.

6.3.16 The TNEB has claimed Rs.116.05 Crores, 120.69 Crores and 125.52

Crores towards interest on GPF and Hydro balancing fund for the control

period. The actual interest on GPF for the year 2007-08 was Rs.57.25

Crores and for 2008-09 was Rs.60.46 Crores. Considering the salary hike

on implementation of wage revision settlement, the mandatory

subscription to GPF will get increased and hence the interest on GPF has

138

been fixed at Rs.70 Crores, 71 Crores and 73 Crores for the control

period.

6.3.17 The TNEB has claimed Rs.407.84 Crores, Rs.424.16 Crores and

Rs.441.12 Crores as ‘other interest’ for the control period. But, as per the

annual statement of accounts for 2008-09, the other unclassified interest

and cost of raising finance, bank charges, penal interest for E.Tax and

guarantee commission to State Government were Rs.146.82 Crores.

Hence, other interest charges have been projected with 4% increase on

the actuals for the year 2008-09.

6.3.18 The claim of interest on hydro balancing fund is not considered as the

same cannot be passed on to the consumer.

6.3.19 The TNEB has not furnished the details for computing Interest during

construction, revenue expenditure incurred in project consecration. Hence,

the capitalization of interest as furnished by TNEB has been accepted and

net interest allocated function wise.

6.3.20 The loan wise interest admitted by the Commission is as below:

Table – 92 Loan wise interest admitted by TNERC (Rs.in Crores)

2010-11 2011-12 2012-13

Institutions Outstanding at the end of the

year

Interest payable

Outstanding at the end of the

year

Interest payable

Outstanding at the end of the

year

Interest payable

Public TNEB Bonds

3834.48 312.33 4600.89 380.41 5530.89 449.10

LIC 858.51 97.34 775.89 90.81 682.30 81.83

REC & REC/Bank

5770.67 658.83 7148.52 833.87 8750.87 914.14

CIA 0 0 0 0 0 0

PFC 2936.22 343.05 3918.52 441.99 3664.77 396.45

PFC/ADB 0 0 0 0 0 0

TNPFC 6482.91 556.71 7454.69 655.07 7976.69 725.27

NABARD 42.51 5.96 20.70 3.32 8.48 1.53

TNPFC Lease 0 0 0 0 0 0

MTL 8636.79 803.53 8151.37 839.41 8731.78 844.15

ICICI/STL 2000.00 334.15 2000.00 170.00 2000.00 170.00

APDRP 330.35 21.32 314.55 19.74 298.75 18.16

PMGY 19.74 2.45 18.31 2.28 16.88 2.11

139

HUDCO 1610.23 145.94 2144.38 196.45 2521.32 244.12

RGGY 13.42 1.41 13.42 1.41 13.42 1.41

Interest on Security Deposit

0 236.78 0 246.25 0 256.10

Interest on GPF 0 70.00 0 71.00 0 73.00

Other interest 0 158.80 0 165.15 0 171.76

Total 32535.83 3748.60 36561.24 4117.16 40196.15 4349.13

Less: Capitalizations

472.50 549.82 623.34

Net Interest & Finance charges

32535.83 3276.11 36561.24 3567.34 40196.15 3725.79

6.3.21 The loan wise interest admitted by the Commission is allocated to the

various functions as below:

Table – 93 Function wise Allocation of Interest on Loan (Rs in Crores)

2010-11 2011-12 2012-13 Sl.No Station

Net Assets Interest Net Assets

Interest Net Assets

Interest

1 ETPS 496.11 78.41 464.28 64.99 432.45 61.84

2 NCTPS 659.07 104.17 593.87 83.13 528.67 75.60

3 MTPS 290.12 45.85 257.61 36.06 225.10 32.19

4 TTPS 694.37 109.75 634.82 88.86 575.27 82.26

5 NCTPS II 5926.12 216.18 5725.72 216.18

6 MTPS II 3611.04 182.30 3488.64 182.0

I Total Thermal 2139.67 338.18 11487.74 671.52 10975.85 650.37

1 BBGTPS 127.36 20.13 109.20 15.29 91.04 13.02

2 Kuttalam 235.55 37.23 224.09 31.37 212.63 30.41

3 Kovilkalappal 203.48 32.16 191.13 26.75 178.78 25.57

4 Valuthur 647.86 102.39 621.41 86.99 594.96 85.08

II Total Gas 1214.25 191.91 1145.83 160.39 1077.41 154.07

1 Erode 502.19 86.23 870.77 141.79 833.59 119.20

2 Kadamparai 193.04 30.51 181.52 25.41 170.00 24.31

3 Kundah 684.37 108.16 654.30 91.59 624.23 89.27

4 Tirunelveli 223.51 42.13 235.60 34.13 224.31 32.08

III Total Hydro 1603.11 267.03 1942.19 292.92 1852.13 264.86

1 Tirunelveli - Wind 96.23 15.21 91.42 12.80 86.61 12.39

2 Udumalpet - Wind

77.99 12.33 75.00 10.50 72.01 10.30

IV Total Wind 174.22 27.54 166.42 23.30 158.62 22.68

V Total Generation 5131.25 824.66 14742.18 1148.13 14064.01 1091.98

VI Transmission 5803.10 1023.39 7212.89 1094.49 7632.53 1158.59

VII Distribution 8051.32 1428.07 8993.88 1324.72 9651.96 1475.21

VIII Grand Total 18985.67 3276.11 30948.95 3567.34 31348.50 3725.79

140

6.4 Return on Equity (RoE)

6.4.1 Regulation 22 of Tariff Regulation specifies the following:

“Return on equity shall be computed on the equity base determined in

accordance with Regulation 21 @14% per annum. The return shall be

allowed post tax.”

6.4.2 The TNEB in the petition claimed reasonable return (3%) on the capital

base as per the Electricity (Supply) Annual Accounts Rule 1985. The

Commission directed the TNEB that the return be calculated on the equity

base as per the provision in the Tariff Regulations.

6.4.3 The TNEB in letter dated 23-02-2010 submitted following:

“The return on capital base is calculated in statement 8 of the Balance

Sheet based on the format prescribed in the Electricity (Supply) Annual

Accounts Rules 1985. As the equity share capital available in the accounts

is less, the return on capital base has been adopted. However, the return

may be calculated on the equity based at 14% per annum as per the tariff

Regulation amendment dated 09-08-2007.

Table – 94 Equity share capital of TNEB

2007-08

(Rs.In

Crores)

2008-09

(Rs.in

Crores)

Equity share capital 1200 2050

II Supplemental addition 350.50

Total 1200 2370.50

14% return on equity 168 331.87

6.4.4 The Commission in letter dated 13-03-2010, directed the TNEB to furnish

the actual equity received in 2009-10 and the projection for 2010-11 to

2012-13 based on the commitment, if any, from Government.

6.4.5 The TNEB in letter dated 05-04-2010 submitted the following:

(1) The actual equity sanctioned by Government in 2009-10 was Rs.100 Crores.

141

(2) In the Budget proposal Rs.1200 Crores has been proposed for each year

from 2010-11 to 2012-13.

(3) There is no commitment from Government on the sanctioning of above

equity.”

6.4.6 As the Government of Tamil Nadu has contributed equity of Rs.100

Crores in 2009-10, the addition to equity in the control period has been

projected at the rate of Rs.100/- Crores each year.

6.4.7 The equity was allocated to each function based on gross fixed assets and

RoE at 14% arrived at as below:

Table – 95 Allocation of Equity to different functions of TNEB

(Rs. in Crores)

2010-11 2011-12 2012-13 Sl.No

Stations / Functions

Equity RoE 14% Equity

RoE 14% Equity

RoE 14%

1 ETPS 82.34 11.53 59.37 8.31 59.05 8.27

2 NCTPS 168.67 23.61 121.61 17.03 120.96 16.93

3 MTPS 84.12 11.78 60.65 8.49 60.32 8.44

4 TTPS 154.07 21.57 111.09 15.55 110.49 15.47

5 NCTPS II 373.80 52.33 371.78 52.05

6 MTPS II 228.30 31.96 227.07 31.79

I Total Thermal 489.20 68.49 954.82 133.67 949.67 132.95

1 BBGTPS 46.98 6.58 33.87 4.74 33.69 4.72

2 Kuttalam 29.64 4.15 21.37 2.99 21.26 2.98

3 Kovilkalappal 31.95 4.47 23.04 3.23 22.91 3.21

4 Valuthur 68.42 9.58 49.33 6.91 49.06 6.87

II Total Gas 176.98 24.78 127.61 17.86 126.92 17.77

1 Erode 61.62 8.63 69.35 9.71 68.98 9.66

2 Kadamparai 29.81 4.17 21.49 3.01 21.38 2.99

3 Kundah 77.78 10.89 56.08 7.85 55.78 7.81

4 Tirunelveli 27.21 3.81 21.06 2.95 20.95 2.93

III Total Hydro 196.43 27.50 167.99 23.52 167.08 23.39

1 Tirunelveli - Wind 12.44 1.74 8.97 1.26 8.92 1.25

2 Udumalpet - Wind 7.73 1.08 5.58 0.78 5.55 0.78

IV Total Wind 20.18 2.82 14.55 2.04 14.47 2.03

142

V Total Generation 882.79 123.59 1264.97 177.09 1258.14 176.14

VI Transmission 729.62 102.15 632.30 88.52 676.27 94.68

VII Distribution 958.09 134.13 773.23 108.26 836.09 117.05

VIII Grand Total 2570.50 359.87 2670.50 373.87 2770.50 387.87

6.5 Depreciation

6.5.1 Regulation 24 of the TNERC Tariff Regulation 2005, specifies the

following:

a. The value base for the purpose of depreciation shall be historical

cost of the asset.

b. The depreciation shall be calculated at the rates as per the

Annexure to these Regulations.

c. The residual value of assets shall be considered as 10% and

depreciation shall be allowed up to maximum of 90% of the

estimated cost of the Asset.

d. Land is not a depreciable asset and its cost shall be excluded from

the capital cost while computing 90% of the historical cost of the

asset.

e. The historical cost of the asset shall include additional

capitalization.

f. Depreciation shall be chargeable from the first year of operation. In

case of operation of the asset for part of the year, depreciation shall

be charged on pro-rata basis.

g. After the assets are fully depreciated the benefit of reduced tariff

shall be made available to the consumer.

6.5.2 The TNEB in their petition have filed Form 19 containing assets and the

depreciation for each year. They have submit the following:

(1) The rates of depreciation as per the TNERC’s Tariff Regulation

have been adopted.

143

(2) 100% value of assets of which 90% value has already been

depreciated has not been considered for calculation of

depreciation.

6.5.3 The TNEB claimed the following depreciation for the control period:

Table – 96 Depreciation claimed by TNEB

(Rs.in Crores)

Sl. No Name of the asset 2010-11 2011-12 2012-13

(1) (2) (3) (4) (5)

1 Land and Land rights 0 0 0

2 Buildings 23.24 24.65 26.16

3 Hydraulic works 21.37 22.88 24.50

4 Other civil works 16.80 17.80 18.86

5 Plant & machinery 530.28 568.92 610.38

6 Lines & cables Network 444.46 499.44 561.22

7 Vehicles 1.76 1.85 1.94

8 Furniture & Fixtures 2.13 2.22 2.32

9 Office equipment 7.49 8.82 10.38

10 capital spare 38.85 43.23 48.10

11 Capital Expenditure result in asset not belonging to Board

0 0 0

12 Spare units 0 0 0

13 Assets taken over from licensees pending finalization

0 0 0

14 Leased assets 0 0 0

15 Capital Exp in progress 0 0 0

Total 1086.38 1189.81 1303.86

6.5.4 The TNEB has not filed the details in the specified format for computation

of weighted average rate of depreciation.

6.5.5 The Commission computed the depreciation taking the following into

account:

144

(a) The weighted average rate of depreciation computed on the gross

value of assets at the beginning of the year excluding the cost of

land and 100% value of assets which were depreciated upto 90%

of the book value is 3.31% as per the Annual Statement of

Accounts of the year 2008-09.

(b) The weighted average rate of depreciation excluding the cost of

land is 3.56%.

(c) The Commission fixes the depreciation for the control period at the

rate of 3.31% on the value of existing assets at the beginning of the

year.

(d) Proportionate depreciation has been fixed at 3.56% for the assets

added / proposed to be commissioned during the control period.

(e) The depreciation for the existing assets has been allowed at 3.31%

on Gross value and at 3.56% on new assets and allocates the to

various functions as below:

Table – 97 Allocation of depreciation to different functions of TNEB

(Rs.in Crores)

Stations 2010-11 2011-12 2012-13

1 ETPS 31.83 31.83 31.83

2 NCTPS 65.20 65.20 65.20

3 MTPS 32.51 32.51 32.51

4 TTPS 59.55 59.55 59.55

5 NCTPS II 128.23 200.40

6 MTPS II 86.77 122.40

I Total Thermal 189.10 404.10 511.89

1 BBGTPS 18.16 18.16 18.16

2 Kuttalam 11.46 11.46 11.46

3 Kovilkalappal 12.35 12.35 12.35

4 Valuthur 26.45 26.45 26.45

II Total Gas 68.41 68.41 68.41

1 Erode 22.41 35.01 37.18

2 Kadamparai 11.52 11.52 11.52

3 Kundah 30.07 30.07 30.07

4 Tirunelveli 9.69 11.28 11.29

III Total Hydro 73.69 87.88 90.06

IV Total on Generation

Assets 331.20 560.39 670.37

1 Tirunelveli - Wind 4.81 4.81 4.81

145

2 Udumalpet - Wind 2.99 2.99 2.99

V Total Wind 7.80 7.80 7.80

VI Total Generation 339.00 568.73 678.71

VII Transmission 267.57 310.93 351.95

VIII Distribution 349.16 392.77 433.52

IX Grand Total 955.72 1271.89 1463.64

6.6 Operation and Maintenance Expenses

6.6.1 The following expenditures are categorized as Operation and

Maintenance Expenses (O & M Expenses).

Repair and Maintenance

Employees cost

Administration and General Expenses

6.6.2 The TNEB has claimed the following O & M Expenses:

Table – 98 O&M expenses claimed by TNEB

(Rs.in Crores)

Sl.No Details 2010-11 2011-12 2012-13

1 Net Repairs & Maintenance Expenses

326.57 339.63 353.22

2 Net Employee Cost 2908.68 3025.22 3146.02

3 Net Admn & General Expenses

228.40 237.53 247.04

4 Total 3463.65 3602.18 3746.28

6.6.3 Subsequently, based on the comments from the Commission, the TNEB

revised the claim for O & M Expenses as below:

Table – 99 Revised O&M expenses claimed by TNEB

(Rs.in Crores)

Sl.No Details 2010-11 2011-12 2012-13

1 Net Repairs & Maintenance Expenses

302.12 314.20 326.77

2 Net Employee Cost 2386.46 2481.94 2581.21

3 Net Admn & General Expenses

302.45 314.54 327.13

4 Total 2991.03 3110.68 3235.11

146

6.6.4 As per Regulation 25 of the TNERC Tariff Regulations, the Operation and

Maintenance Expenses (O & M Expenses) shall be derived on the basis of

average of actual O & M expenses for the past five years based on the

audited Annual Accounts excluding abnormal O & M expenses, if any,

after prudence check by the Commission.

6.6.5 Various components of O & M expenses were analyzed and revised on

the following lines.

6.7 Repair & Maintenance

6.7.1 There were abnormal expenditures on repairs to plant and machineries,

buildings and other civil works during one or two years among the

previous five years taken up for average. In ETPS and NCTPS repairs to

plant and machinery during 2007-08 and 2008-09 were more than 200%

than the expenditure during the earlier years.

6.7.2 There were abnormal repair and maintenance expenditure to buildings in

Kuttalam GTPS, NCTPS, Erode, Tirunelveli and Kadamparai.

6.7.3 The TNEB in letter dated 07-04-2010, have submitted that the increased

expenditure in MTPS was due to capital overhaul work of unit –II carried

out after 7 years. In TTPS Rs.20/- Crores was spent on painting, conveyor

system, boiler erection, etc.,

6.7.4 The average expenditure on Repairs and maintenance for the purpose of

projection arrived at by TNEB was revised excluding the actual abnormal

expenditures.

6.7.5 The net repair and maintenance expenditure claimed by TNEB and

admitted by the Commission are as below:

Table – 100 Repairs and maintenance expenditures admitted by TNERC

Claimed by TNEB Admitted by TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Repairs and Maintenance Expenses (Rs.in Crores)

302.11 314.20 326.77 237.67 247.23 257.12

147

6.8 Employee Cost

6.8.1 The TNEB submitted the following projection in their petition.

Table – 101 Projection of employee cost by TNEB

(Rs.in Crores)

Current Year

Control Period S. No.

Details

Average of

previous 5 years

2009-10 2010-11 2011-12 2012-13

1 Salary 742.32 943.49 1075.58 1118.60 1163.34

2 Overtime wages 12.83 19.35 20.12 20.93 21.77

3 Dearness Allowance 379.65 528.47 602.46 626.55 651.62

4 Other Allowances 78.63 70.77 73.60 76.54 79.61

5 Bonus & Ex-gratia 56.02 61.56 64.02 66.58 69.25

Total (1 to 5) 1269.45 1623.64 1835.78 1909.21 1985.58

6 Medical expenses reimbursement 4.60 3.31 3.44 3.58 3.72

7 Leave Travel concession 1.01 1.45 1.51 1.57 1.63

8 Earned Leave encashment 107.53 125.15 130.16 135.36 140.78

9 Terminal benefits 756.46 1061.38 1209.98 1258.37 1308.71

10 Staff welfare expenses & Board's Contribution to CPS

7.87 14.42 15.00 15.60 16.22

Payment under workmen's compensation Act

0.09 0.47 0.49 0.51 0.53

11 Commissioning/ Golden Jubilee incentive

4.49 0 0 0

12 Grand Total 2151.50 2829.82 3196.35 3324.20 3457.17

Less: Capitalization 200.20 249.54 287.67 299.18 311.15

13 Net Expenses 1951.31 2580.28 2908.68 3025.02 3146.02

6.8.2 The following discrepancies were found on scrutiny of TNEB’s claim

6.8.2.1 Salary for 2010-11 was escalated at 14% over the budgeted figure for

2009-10 and for further period, projection was made with 4% increase.

6.8.2.2 Dearness allowance was claimed at the rate of 56% uniformly for all

the years of the control period

6.8.2.3 The revision of pay ordered with effect from 01-12-2007 was not taken

into account.

148

6.8.3 The above deficiencies were pointed out to TNEB and the TNEB

submitted a revised statement as below:

Table – 101 Revised projection of employee cost by TNEB

(Rs.in Crores)

Current Year

Control Period S. No.

Details Average of previous 5 years

2009-10 2010-11 2011-12 2012-13

1 Salary 742.32 919.06 987.42 993.81 994.66

2 Overtime wages 12.83 13.34 13.88 14.04 14.18

3 Dearness Allowance 379.65 284.91 385.10 437.28 497.34

4 Other Allowances 78.63 81.77 85.04 85.18 85.34

5 Bonus & Ex-gratia 56.02 58.26 60.59 63.01 65.53

Total (1 – 5) 1269.45 1357.34 1532.03 1593.32 1657.05

6 Medical expenses reimbursement

4.60 4.78 4.98 5.17 5.38

7 Leave Travel concession 1.01 1.05 1.09 1.13 1.18

8 Earned Leave encashment

107.53 111.83 116.31 120.96 125.80

9 Terminal benefits 756.46 824.55 999.98 977.58 1016.68

10 Staff welfare expenses & Board's Contribution to CPS

7.87 8.19 8.52 8.86 9.21

Payment under workmen's compensation Act

0.09 0.09 0.10 0.10 0.11

11 Commissioning/ Golden Jubilee incentive

4.49 0 0 0 0

12 Grand Total 2151.50 2307.84 2603.00 2707.13 2815.41

Less: Capitalization 200.20 208.20 216.53 225.19 234.20

13 Net Expenses 1951.31 2099.63 2386.46 2481.94 2581.21

(i) The details of employee cost subsequently submitted were also found

to be incorrect. The TNEB was therefore directed to furnish the No. of

employees in each pay band.

(ii) The employee cost has been projected taking into account the

revision of pay ordered with effect from 01-12-2007, the number of

149

employees in each pay band, weightage and grade pay. The salary for

further period was projected with 3% increase.

(iii) The retirement (Pension) benefits have been projected considering the

pension revision order with effect from 01-01-2007.

(iv) Dearness allowance has been projected at the rate of 40% for 2010-

11, 45% for 2011-12 and 50% for 2012-13.

(v) The employee cost arrived at by Commission is as below:

Table – 102 Employee cost arrived by the Commission

(Rs.in Crores)

Particulars 2009-10 2010-11 2011-12 2012-13

1 Salary 1386.67 1428.27 1471.12 1515.25

2 Overtime Wages 13.34 13.88 14.04 14.18

3 Dearness Allowance 402.13 571.31 662.00 757.63

4 Other Allowance 136.34 143.16 148.89 154.84

5 Bonus & Ex-gratia 62.00 62.00 62.00 62.00

Sub-Total 1 2000.48 2218.62 2358.05 2503.90

1 MRI 4.78 4.98 5.17 5.38

2 LTC 1.05 1.09 1.13 1.18

3 EL Encashment 143.24 148.47 154.93 161.13

4 Terminal Benefit 1314.97 1412.73 1538.41 1672.34

5 Welfare expenses &CPF contribution 8.19 8.52 8.86 9.21

6 Compensation 0.09 0.10 0.10 0.11

7 Other Incentives 0 0 0 0

Sub-Total 2 1472.32 1575.89 1708.60 1849.35

Grand Total 3472.80 3794.51 4066.65 4353.25

Less: Capitalization 208.20 216.53 225.19 234.20

Net Expenses 3264.60 3577.98 3841.46 4119.05

6.9 Administrative and General Expenses

6.9.1 The TNEB has projected 1% insurance on generation assets with the

increase of 4% over the average for past five years. This has been

revised as 1% on the net value of the assets.

150

6.9.2 Abnormal expenditures on the heads legal / consultancy charges and

misc. expenses during the past period have been excluded to arrive at the

average for the purpose of projection for the control period.

6.9.3 The net administration and general expenses claimed by TNEB and

admitted by the Commission are as below:

Table – 103 Net administration and general expenses admitted by TNERC

Claimed by TNEB Admitted by TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Admn. and

General

Expenses (Rs.in

Crores)

302.45 314.54 327.13 252.80 257.82 272.15

6.9.4 Total O & M Expenses:

Table – 104 O&M expenses admitted by TNERC

Sl.

No

Details TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

1 Repairs and

Maintenance

302.11 314.21 326.77 237.67 247.23 257.12

2 Employee

Cost

2908.68 3025.02 3146.02 3577.98 3841.46 4119.05

3 Admn.

general

expenses

302.45 314.54 327.13 252.80 257.82 272.15

Total 3513.24 3653.77 3799.92 4068.45 4346.51 4648.32

6.10 Allocation of O & M Expenses

6.10.1 The O & M Expenses (excluding operating expenses of generating

stations) after capitalization are allocated among various functions as

detailed below:

151

Table – 105 Allocation of O&M expenses by TNEB to different functions of TNEB

(Rs.in Crores)

Function 2010-11 2011-12 2012-13

R & M Empl A & G Total R & M Empl A & G Total R & M Empl A & G Total

ETPS 45.09 57.67 10.20 112.96 46.89 61.90 10.38 119.17 48.77 66.37 10.58 125.72

NCTPS 69.98 48.53 13.02 131.53 72.78 52.09 13.22 138.09 75.69 55.86 13.42 144.97

MTPS 12.01 63.52 10.60 86.13 12.49 68.18 10.89 91.56 12.99 73.11 11.18 97.28

TTPS 23.77 75.83 20.32 119.92 24.72 81.39 20.80 126.91 25.71 87.27 21.31 134.29

Total

Thermal

150.85 245.55 54.14 450.54 156.88 263.56 55.29 475.73 163.16 282.61 56.49 502.26

BBGTPS 1.99 5.53 2.67 10.19 2.07 5.98 2.71 10.76 2.15 6.45 2.75 11.35

Kuttalam 7.04 3.09 3.02 13.15 7.33 3.34 3.04 13.71 7.62 3.61 3.05 14.28

Kovilkalapp

al

3.57 3.51 2.76 9.84 3.71 3.79 2.78 10.28 3.86 4.09 2.79 10.74

Valuthur 1.41 4.72 7.18 13.31 1.47 5.10 7.18 13.75 1.52 5.51 7.19 14.22

Total Gas 14.01 16.85 15.63 46.49 14.58 18.21 15.71 48.50 15.15 19.66 15.78 50.56

Erode 1.07 27.45 6.92 35.44 1.10 29.47 6.93 37.50 1.14 31.60 7.04 39.78

Kadamparai 1.83 22.64 5.75 30.22 1.98 24.29 5.98 32.25 2.06 26.06 6.22 34.34

Kundah 1.48 32.68 13.52 47.68 1.54 35.08 13.77 50.39 1.60 37.62 14.02 53.24

Tirunelveli 1.43 26.50 7.27 35.20 1.49 28.44 7.95 37.88 1.55 30.49 8.53 40.57

Total

Hydro

5.81 109.27 33.46 148.54 6.11 117.28 34.63 158.02 6.35 125.77 35.81 167.93

WEDC -

Tirunelveli

0.39 7.80 0.18 8.37 0.40 8.37 0.19 8.96 0.42 8.98 0.20 9.60

WEDC -

UDP

0.16 3.15 0.09 3.40 0.16 3.38 0.10 3.64 0.17 3.63 0.10 3.90

Total Wind 0.55 10.95 0.27 11.77 0.56 11.75 0.29 12.6 0.59 12.61 0.30 13.50

Total

Generation

171.22 382.62 103.50 657.34 178.13 410.80 105.92 694.85 185.25 440.65 108.38 734.25

Transmissio

n

33.71 433.77 20.23 487.71 35.05 465.73 20.58 521.36 36.46 499.37 22.19 558.02

Distribution 32.74 2761.59 129.07 2923.40 34.05 2964.93 131.32 3130.30 35.41 3179.06 141.58 3356.05

Total 237.67 3577.98 252.8 4068.45 247.23 3841.45 257.82 4346.51 257.12 4119.08 272.15 4648.32

6.11 Operating Expenses

6.11.1 The operating expenses like water charges for Thermal stations and the

cost of lubricants being accounted for along with the cost fuel by TNEB

are segregated and included in the O & M expenses.

152

6.11.2 The Commission fixes the O & M Expenses (including operating expenses

of generating stations) as detailed below:

Table – 106 Allocation of O&M expenses by TNERC to different functions of TNEB

(Rs.in Crores)

Function 2010-11 2011-12 2012-13

Total

(excludin

g

operating

expenses

)

Operat

ing

Expen

ses

Total O &

M

Expense

s

Total

(excludin

g

operating

expenses

)

Operat

ing

Expen

ses

Total O &

M

Expenses

Total

(exclud

ing

operati

ng

expens

es)

Operat

ing

Expen

ses

Total O &

M

Expense

s

ETPS 112.96 16.98 129.94 119.17 17.15 136.32 125.72 17.32 143.04

NCTPS 131.53 8.17 139.7 138.09 8.26 146.35 144.97 8.34 153.31

MTPS 86.13 0.79 86.92 91.56 0.8 92.36 97.28 0.81 98.09

TTPS 119.92 6.28 126.2 126.91 6.34 133.25 134.29 6.4 140.69

Total Thermal

450.54 32.22 482.76 475.73 32.55 508.28 502.26 32.87 535.13

BBGTPS 10.19 0.07 10.26 10.76 0.07 10.83 11.35 0.07 11.42

Kuttalam 13.15 0.53 13.68 13.71 0.53 14.24 14.28 0.54 14.82

Kovilkalappal 9.84 0.25 10.09 10.28 0.25 10.53 10.74 0.26 11.00

Valuthur 13.31 0.14 13.45 13.75 0.14 13.89 14.22 0.14 14.36

Total Gas 46.49 0.99 47.48 48.5 0.99 49.49 50.59 1.01 51.6

Erode 35.44 35.44 37.5 37.5 39.78 39.78

Kadamparai 30.22 30.22 32.25 32.25 34.34 34.34

Kundah 47.68 47.68 50.39 50.39 53.24 53.24

Tirunelveli 35.2 35.2 37.88 37.88 40.57 40.57 Total Hydro 148.54 148.54 158.02 158.02 167.93 167.93

WEDC - Tirunelveli

8.37 8.37 8.96 8.96 9.6 9.6

WEDC - UDP

3.4 3.4 3.64 3.64 3.9 3.9

Total Wind 11.77 0 11.77 12.6 0 12.6 13.5 0 13.5

Total Generation

657.34 33.21 690.55 694.85 33.54 728.39 734.25 33.88 768.13

Transmission 487.71 487.71 521.36 521.36 558.02 558.02

Distribution 2923.4 2923.4 3130.3 3130.3 3356.05 3356.02

Total 4068.45 33.21 4101.66 4346.51 33.54 4380.05 4648.32 33.88 4682.17

6.12 O & M Expenses for new generating stations

6.12.1 Regulation 25 (4)and (6) of TNERC Tariff Regulations 2005 specifies the

following:

153

“(4) In case of the thermal power Generating Stations, which have not

been in existence for a period of five years the operation and maintenance

expenses shall be fixed at 1.0% of the capital cost (as admitted by the

Commission) and shall be escalated at the rate of 4% per annum from the

subsequent year to arrive at base operation and maintenance expenses.

The base operation and maintenance expenses shall be further escalated

at the rate of 4% per annum to arrive at permissible operation and

maintenance expenses for the relevant year.

In case of the hydro electro Generating Stations, which have not been in existence

for a period of five years, the operation and maintenance expenses shall be fixed

at 1.0% of the capital cost as admitted by the Commission and shall be escalated

at the rate of 4% per annum from the subsequent year to arrive at base operation

and maintenance expenses. The base operation and maintenance expenses shall

be further escalated at the rate of 4% per annum to arrive at permissible

operation and maintenance expenses for the relevant year”

6.12.2 The TNEB has stated that the following stations would be commissioned

during the control period.

6.12.3 The TNEB has not projected any O & M expenses for these stations.

6.12.4 The Commission fixes the O & M expenses to the new generating stations

as detailed below in accordance with the provisions in the Tariff

Regulations:

Table – 107 O&M expenses admitted by TNERC to new generating stations

O & M Expenses (Rs.in Crores) Project CoD Month Asset Value (Rs.in Crores)

2010-11 2011-12 2012-13

MTPS stage II 07/2011 3697.81 24.64 36.97

NCTPS – Expansion unit 1

05/2011 3224.10

26.87 32.25

NCTPS – Expansion unit 2

11/2011 2830.25

9.43 28.30

Bavanikattalai –B II

05/2011 175.26

1.45 1.75

Bavanikattalai –B III

06/2011 175.26

1.31 1.75

154

Bavani –B I 05/2011 53.09 0.44 0.53

Bavani –B II 12/2010 57.38 0.14 0.57 0.57

Periyar Vaigai SHEP I

06/2010 25.27

0.19 0.25 0.25

Periyar Vaigai SHEP II

11/2010 15.79

0.05 0.16 0.16

Periyar Vaigai SHEP III

04/2011 23.34

0 0.21 0.23

Periyar Vaigai SHEP IV

11/2010 15.79

0.05 0.16 0.16

Total 0.43 65.49 102.92

6.13 Controllable and uncontrollable parameters

6.13.1 Regulation 3 (viii) of terms and conditions for determination of tariff for

transmission/distribution of electricity under MYT framework provides for

mechanism of pass through of all approved gains and losses on account

of uncontrollable factors. Items covered under uncontrollable costs are:-

a. Cost of fuel

b. Cost on account of inflation

c. Taxes and duties and

d. Variation in power purchase unit cost from base line level including

variation on account of hydro-thermal mix in case of force majeure

and adverse natural events like drought.

6.13.2 The licensee shall file application for revision on account of such variation

for Commission’s consideration and orders. The Regulation also provides

for mechanism for sharing approved gains or losses arising out of

controllable factors. Regulation 3 (ix) envisages that the financial loss, if

any, due to failure to achieve the target for the controllable costs in any of

the years in the control period shall be borne by licensees and gains if any

shall be shared with beneficiaries at 50:50.

6.13.3 The Commission would like to clarify that all controllable factors which

includes O & M expenses could not be fixed for want of reliable data and

also due to the fact that the TNEB is in the process of unbundling and the

assets are to be transferred to the successor entities. In view of this, the

Commission has only estimated the O & M expenses and the parameters

155

for the purpose of this tariff order. All these parameters are provisional

and will therefore be required to be trued up based on audited figures and

prudency check. The fixing of controllable parameters can be done only

when reliable data becomes available.

6.14 Interest on Borrowing for Working Capital

6.14.1 The TNEB has claimed interest on working capital on normative basis.

6.14.2 The TNEB has been borrowing (short term loan / cash credit/ overdraft) for

working capital and interest on such borrowing is included along with

interest on capital loan and allocated to all the functions.

6.14.3 The TNEB was directed to explain the reasons for claiming interest on

working capital in addition to projection of interest on short term loan.

6.14.4 The TNEB has submitted the following

“Since the interest on borrowings for working capital is already included

the claim on normative basis is withdrawn”

6.14.5 Accordingly, interest on working capital is not allowed separately.

6.14.6 The Tariff Regulations 2005 and MYT regulations could not be fully

implemented for want of reliable data from TNEB. After the issue of the

Transfer Scheme and receipt of petition from the successor entities, these

issues will be reviewed and action taken accordingly.

6.15 Other Debits

6.15.1 The expenses like material cost variance, bad & doubtful debts, extra

ordinary debits, R & D expenses, etc., are accounted under this head.

6.15.2 The provision under the head hydro balancing fund is not considered by

the Commission as the Commission has projected the hydro generation at

the capacity availability factor of 25.00%. The changes in the generation

mix will be taken care of by increase / decrease in power purchase cost

and the addition / utilization of hydro balancing fund on actuals.

6.15.3 The capitalization of interest in other debits has been proportionately

reduced.

156

6.15.4 The other debits claimed by TNEB and admitted by the Commission is as

below:

Table – 108 Other debits admitted by TNERC

(Rs.in Crores)

TNEB TNERC Sl.No Particulars

2010-11

2011-12

2012-13

2010-11 2011-12

2012-13

1 Research & Development expenses

0.02 0.02 0.02 0.02 0.02 0.02

2 Bad & Doubtful debts written off

0.20 0.20 0.20 0.20 0.20 0.20

3 Miscellaneous losses and written off/provided for

6.68 6.68 6.68 6.68 6.68 6.68

4 Material cost variance 22.33 22.33 22.33 22.33 22.33 22.33

5 Sundry expenses 0.01 0.01 0.01 0.01 0.01 0.01

6 Extra ordinary debits 0.02 0.02 0.02 0.02 0.02 0.02

7 Hydro Balancing Fund 129.22 129.22 129.22 0 0 0

Total 158.48 158.48 158.48 29.26 29.26 29.26

Less: Capitalization 19.07 20.02 21.02 3.60 4.00 4.51

Net expenses 139.41 138.46 137.46 25.66 25.26 24.75

6.15.5 Material cost variances and provision for miscellaneous loss have been

allocated to all the functions based on gross fixed assets and the

remaining expenses are allocated to distribution functions as detailed

below:

Table – 109 Allocation of material cost variance to different functions of TNEB

(Rs.in Crores)

2010-11 2011-12 2012-13

Station

Gross Block (Closing)

Other Debits

Gross Block at the end

Other Debits

Gross Block at the end

Other Debits

1 ETPS 961.60 0.82 961.60 0.56 961.60 0.53

2 NCTPS 1969.76 1.68 1969.76 1.15 1969.76 1.08

3 MTPS 982.31 0.84 982.31 0.57 982.31 0.54

4 TTPS 1799.23 1.54 1799.23 1.05 1799.23 0.99

5 NCTPS II 6054.35 3.54 6054.35 3.32

6 MTPS II 3697.81 2.16 3697.81 2.03

157

I Total Thermal 5712.90 4.88 15465.06 9.03 15465.06 8.49

1 BBGTPS 548.58 0.47 548.58 0.32 548.58 0.30

2 Kuttalam 346.14 0.30 346.14 0.20 346.14 0.19

3 Kovilkalappal 373.11 0.32 373.11 0.22 373.11 0.20

4 Valuthur 798.98 0.68 798.98 0.47 798.98 0.44

II Total Gas 2066.81 1.77 2066.81 1.21 2066.81 1.13

1 Erode 719.65 0.62 1123.24 0.66 1123.24 0.62

2 Kadamparai 348.14 0.30 348.14 0.20 348.14 0.19

3 Kundah 908.35 0.78 908.35 0.53 908.35 0.50

4 Tirunelveli 317.76 0.27 341.13 0.20 341.13 0.19

III Total Hydro 2293.90 1.96 2720.86 1.59 2720.86 1.49

1 Tirunelveli -

Wind 145.31 0.12 145.31 0.08 145.31 0.08

2 Udumalpet -

Wind 90.32 0.08 90.32 0.05 90.32 0.05

V Total Wind 235.63 0.20 235.63 0.13 235.63 0.13

VI Total

Generation 10309.24 8.81 20488.36 11.96 20504.81 11.25

VII Transmission 8520.58 7.28 10241.30 5.99 11012.89 6.04

VIII Distribution 11188.69 9.56 12507.57 7.31 13599.17 7.46

IX Grand Total 30018.51 25.66 43237.23 25.26 45116.87 24.75

6.16 Comparison of Expenses

6.16.1 The expenses excluding power purchase cost and fuel cost claimed in the

Tariff Petition is compared with the expenses admitted by the Commission

as below:

158

Table – 110 Expenses admitted by TNERC

(Rs in Crores)

TNEB TNERC Particulars

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 1086.36 1189.81 1303.86 955.72 1271.89 1463.64

Interest on Loan Capital

3464.99

4032.05

4571.16

3276.11 3567.34 3725.79

Return on Equity 378.25 412.23 449.80 359.87 373.87 387.87

Net Repairs & Maintenance

302.12 314.20 326.77 237.67 247.23 257.12

Employee Cost 2386.46 2481.94 2581.21 3577.98 3841.46 4119.05

Admn. and General Expenses

302.45 314.54 327.13 252.80 257.82 272.15

Operating Expenses 0 0 0 33.21 33.54 33.80

Other debits 139.41

138.46 137.46 25.66 25.26 24.75

Total Expenses

8060.04 8883.23 9697.39 8719.02 9618.41 10284.17

159

CHAPTER 7

GENERATION TARIFF

7.1 Regulation 36 (Components of Tariff) specifies the following

(1) The tariff for sale of power by the Generating Companies shall be

of two parts namely the Fixed Charges (recovery of annual capacity

charges) and variable (energy) charges.

(2) The Fixed (annual capacity) charges shall consist of the following

elements:

- Interest on Loan Capital;

- Depreciation

- Return on Equity;

- Operation and Maintenance expenses; and

- Interest on Working Capital:

(3) The energy (variable) charges shall cover fuel cost.

7.2 The TNEB in the tariff petition have computed the fuel cost for the

generating stations owned by them and included the fuel cost in the ARR

for determination of retail tariff.

7.3 Clause (vi) of Regulation 43 of the TNERC (Terms and conditions for

Determination of Tariff) Regulations, 2005 specifies the following:

“vi. In respect of power generated in the station owned by the distribution

licensee and distributed by the licensee itself in his area of supply, the

generation tariff of the station shall be considered as the transfer price to

the distribution licensee which will be determined in the licensee’s tariff

petition itself.”

7.4 Clause (3) of Regulation 6 of the Tariff Regulation specifies the following:

“(3) The application for determination of tariff for the existing generating

station and transmission system shall be accompanied by information in

the respective formats appended to these Regulations duly furnishing the

figures for the previous year, current year and ensuing year.”

160

7.5 The Commission directed the TNEB to furnish the information for

determination of generation tariff in the formats prescribed in the Tariff

Regulation. Accordingly, the TNEB has submitted the station wise

informations like interest on loan, O & M expenses, etc.

7.6 The Commission will determine a two part generation tariff as per

Regulations for each of the thermal generating station (both coal based

and gas based) as each station is a separate accounting unit. In respect of

hydel stations a single generation tariff for all the hydel stations under

each of the generation circle will be determined as separate accounts for

each of the hydro stations is not made available.

7.7 The two part generation tariff consist of fixed charges (recovery of annual

capacity) and variable (energy) charges

7.8 Once the unbundling takes place and transfer scheme is issued by the

Government of Tamil Nadu under section 131 of Electricity Act 2003, the

provisions of the transfer scheme will govern the future course of action.

7.9 Thermal generating stations

7.9.1 Determination of Fixed (annual capacity) charges:

7.9.1.1 Regulation 41 of TNERC Tariff (computation of capacity (fixed)

charges) specifies the following:

“The total annual Fixed Charges of a Generating Company consist the

elements detailed in clause (2) of Regulation 36 shall be worked out on the

basis of the principles outlined in Chapter III and also in accordance with the

norms allowed in these Regulations.

The annual capacity charges recoverable by the Generating Company shall

be worked out by deducting other income as per Regulation 40 from the total

annual expenses.”

7.9.1.2 The elements constituting fixed charges have been computed and

allocated to generating stations in the chapters as detailed below:

Table – 111 Elements of fixed cost

Sl. No Fixed Charges component Reference to chapter / para

1 Depreciation 6.5.5 2 Interest on Loan Capital 6.3.21

161

3 Return on Equity 6.4.7

4 Operation & Maintenance Expenses 6.11.2

7.9.1.3 The fixed (annual capacity charges) claimed by TNEB and approved

the Commission are as below:

Table – 112 Fixed cost admitted by TNERC for ETPS

(Rs. In Crores)

TNEB TNERC

Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 39.19 42.92 47.03 31.83 31.83 31.83

Interest on Loan 80.57 95.58 105.50 78.41 64.99 61.84

Return on Equity 17.53 22.58 27.63 11.53 8.31 8.27

O&M expenses 115.51 120.13 124.93 129.94 136.32 143.04

Other Debits 0.82 0.56 0.53

Less; Misc Income 9.15 9.15 9.15

Total 252.80 281.21 305.09 243.38 232.86 236.36

Table – 113 Fixed cost admitted by TNERC for TTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 51.96 54.57 57.31 59.55 59.55 59.55

Interest on Loan 226.45 268.64 296.51 109.75 88.86 82.26

Return on Equity 49.26 63.45 77.65 21.57 15.55 15.47

O&M expenses 111.42 115.88 120.51 126.20 133.25 140.69

Other Debits 1.54 1.05 0.99

Less; Misc Income 9.84 9.84 9.84

Total 439.09 502.54 551.98 308.77 288.22 289.12

Table – 114 Fixed cost admitted by TNERC for MTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 33.32 33.53 33.74 32.51 32.51 32.51

Interest on Loan 123.63 146.67 161.88 45.85 36.06 32.19

Return on Equity 26.89 34.64 42.39 11.78 8.49 8.44

O&M Expenses 82.15 85.43 88.85 86.92 92.36 98.09

Other Debits 0.84 0.57 0.54

Less; Misc Income 8.41 8.41 8.41

Total 265.99 300.27 326.86 169.49 161.58 163.36

162

Table – 115 Fixed cost admitted by TNERC for NCTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 61.77 62.62 63.48 65.20 65.20 65.20

Interest on Loan 247.91 294.1 324.61 104.17 83.13 75.60

Return on Equity 53.93 69.47 85.01 23.61 17.03 16.93

O&M expenses 144.48 150.26 156.27 139.7 146.35 153.31

Other Debits 1.68 1.15 1.08

Less; Misc Income 6.78 6.78 6.78

Total 508.09 576.45 629.37 327.58 306.08 305.34

Table – 116 Fixed cost admitted by TNERC for Kuttalam GTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 15.61 15.61 15.61 11.46 11.46 11.46

Interest on Loan 30.90 36.66 40.46 37.23 31.37 30.41

Return on Equity 6.72 8.66 10.60 4.15 2.99 2.98

O&M expenses 13.67 14.22 14.79 13.68 14.25 14.82

Other Debits 0.30 0.20 0.19

Less; Misc Income 0.02 0.02 0.02

Total 66.90 75.15 81.46 66.80 60.25 59.84

Table – 117 Fixed cost admitted by TNERC for Kovilkalappal GTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 18.22 20.93 24.03 12.35 12.35 12.35

Interest on Loan 33.31 39.52 43.62 32.16 26.75 25.57

Return on Equity 7.25 9.33 11.42 4.47 3.23 3.21

O&M expenses 4.69 4.88 5.07 10.09 10.53 10.98

Other Debits 0.32 0.22 0.20

Less; Misc Income 0.11 0.11 0.11

Total 63.47 74.66 84.14 59.28 52.97 52.20

163

Table – 118 Fixed cost admitted by TNERC for Valuthur (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 30.98 36.84 43.79 26.45 26.45 26.45

Interest on Loan 46.97 55.72 61.5 102.39 86.99 85.08

Return on Equity 10.22 13.16 16.11 9.58 6.91 6.87

O&M expenses 8.4 8.73 9.08 13.45 13.45 14.36

Other Debits 0.68 0.47 0.44

Less; Misc Income 0.16 0.16 0.16

Total 96.57 114.45 130.48 152.39 134.11 133.04

Table – 119 Fixed cost admitted by TNERC for BBGTPS (Rs. In Crores)

TNEB TNERC Tariff Components 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 30.27 30.3 30.32 18.16 18.16 18.16

Interest on Loan 48.98 58.1 64.13 20.13 15.29 13.02

Return on Equity 10.65 13.72 16.79 6.58 4.74 4.72

O&M expenses 12.48 12.98 13.5 10.26 10.83 11.42

Other Debits 0.47 0.32 0.30

Less; Misc Income 0.24 0.24 0.24

Total 102.38 115.1 124.74 55.36 49.10 47.38

7.9.2 Determination of Variable (Energy) Charges :

7.9.2.1 As per Regulation 43 (ii) of the Tarff Regulation, the Energy (Variable)

charges shall be worked out on the basis of ex-bus energy delivered /

sent out from the generating station.

7.9.2.2 Rate of energy charges is based on the following elements:

(a) Price of primary fuel

(b) Quantum of primary fuel (coal) in kg required for generation of one

kWh of electricity at generator terminals and shall be computed on

the basis of Gross Station Heat Rate (less heat contributed by

secondary fuel oil) and gross calorific value of coal.

(c) Price of secondary fuel oil

(d) Normative quantity of secondary fuel

(e) Normative auxiliary consumption

164

7.10 Price of Primary Fuel

7.10.1 The TNEB procures coal from the following sources through multi model

transport (rail, sea-rail) under coal shipping agreement for the power

plants.

Table – 121 Quantity of coal procurement by TNEB

Sl.No Name of the coal field Annual Quantity (in lakh tonnes)

1 Eastern coal fields Ltd (ECL) 14.25

2 Mahanadhi coal fields Ltd (MCL) 118.75

Total 133.00

7.10.2 Besides, the TNEB import 18 lakhs tonnes annually to meet the

requirements of the station.

7.10.3 The contracted quantity is allocated as below:

Table – 122 Allocation of coal to different thermal stations

(in lakh tonnes)

Sl. No Station ECL Coal MCL Coal Imported Total

1 ETPS 3.20 13.12 0 16.32

2 TTPS 4.30 44.27 9.00 57.57

3 MTPS 2.50 36.36 5.50 44.36

4 NCTPS 4.25 25.00 3.50 32.75

Total 14.25 118.75 18.00 151.00

7.10.4 The coal is priced at average landed cost which includes basic cost of

coal, Royalty, taxes and duties, ocean freight, railway freight and

handling charges.

7.10.5 The average landed cost of coal is calculated every quarter in advance

(provisionally) with reference to the linkage of coal and quantum of

coal for the quarter. At the end of the year the landed cost for the entire

year is calculated based on the actual payment and actual quantity.

The variation between the actual cost computed at the end of the year

and the quarterly landed cost at which the consumption of coal was

priced is adjusted.

165

7.10.6 The weighted average landed cost of coal actually received during 2008-

09 and 2009-10 as submitted by TNEB were as below:

Table – 123 Weighted average landed cost of coal

(Rs / MT)

2008-09 2009-10 Sl.No Station

Indigenous Import Indigenous Import

1 ETPS 1900 - 1919 -

2 TTPS 2543 5628 2485 5334

3 MTPS 2246 5603 2256 5423

4 NCTPS 1832 5189 1851 5018

7.10.7 The TNEB report that imported coal is blended with indigenous coal in the

ratio of 20: 80 in the stations except ETPS. But, the quantum of coal

imported is less than 20% of the indigenous coal. Hence, for the

purpose of calculation of coal cost, the quantity as per allocation has

been considered.

7.10.8 The increase in weighted average landed cost of coal in 2009-10 was

marginal for ETPS, MTPS and NCTPS and there was decrease in the

average landed cost of coal for TTPS. The increase in weighted

average cost of imported coal is also negative. Hence, for 2010-11 an

increase of 1% is allowed to arrive at the weighted average cost of

coal.

7.11 Quantity of Primary Fuel / Coal

7.11.1 As per Regulation 43 of the Tariff Regulation, the quantity of primary fuel

required for generation of one kWh of electricity at generator terminals in

kg or litre or cum as the case may be, shall be computed on the basis of

Gross Station Heat Rate (less heat contributed by secondary fuel oil for

coal / lignite based generating stations) and gross calorific value of coal /

lignite or gas or liquid fuel actually fired.

166

7.12 Gross Station Heat Rate:

7.12.1 In the TNERC (Terms and conditions for determination of Tariff)

Regulations, 2005, the following norms for existing coal based Thermal

Power generating station have been specified based on the performances

reported and the rates adopted for previous tariff order:

Table – 124 Normative heat rate for existing thermal stations

Sl.No Station Heat Rate (in kcal / kWh)

1 ETPS 3200

2 TTPS 2453

3 MTPS 2500

4 NCTPS 2393

7.12.2 The normative gross station heat rates for the new thermal power station

specified in the Tariff Regulations are as below:

Table – 125 Normative heat rate for new thermal stations

Particulars 200 / 210 / 250 MW series

500 MW and above series

During Stabilization Period

2600 Kcal / kWh 2550 Kcal / kWh

Subsequent period 2500 Kcal / kWh 2450 Kcal / kWh

7.12.3 The TNEB has furnished actual average station heat rate (kcal / kWh) for

the stations from 2003-04 to 2008-09 and also for 2009-10 (upto Feb

2010) as below:

Table – 126 Trend in station heat rate of existing thermal stations

Sl.No Station 2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

Average

for 6

years

2009-

10

upto

Feb

1 ETPS 3328 3280 3303 3243 3362 3277 3299 3388

2 TTPS 2459 2487 2492 2495 2543 2554 2505 2553

3 MTPS 2542 2555 2538 2514 2499 2511 2527 2536

4 NCTPS 2489 2453 2451 2450 2453 2457 2459 2466

167

7.12.4 The Commission has prescribed the following heat rate norms in Clause

37 of Terms and Conditions for determination of tariff Regulations 2005 for

the power stations:-

Gross Station Heat Rate (in kcal / kWh)

1. ETPS - 3200

2. TTPS - 2453

3. MTPS - 2500

4. NCTPS - 2393

7.12.5 The station heat rate norm for new thermal power station has been

stipulated as 2500 kcal / kWh and 2450 kcal / kWh for 210 / 500 MW

generating units. These norms correspond to the standards stipulated in

the CERC (Terms and Conditions of Tariff) Regulations 2004. The CERC

has modified the norms in 2009 as 2500 kcal / kWh and 2425 kcal / kWh

for 210 / 500 MW generating units. The details furnished by TNEB for

these power stations have been examined and it is observed that they

have exceeded the normative heat rate in many power stations. The

TNEB has furnished the heat rates on a quarterly basis for 2008-09 and

2009-10. They have sought relaxation of station heat rate norms for TTPS

and NCTPS in their letter dated 23-7-2010.

7.12.6 The Central Electricity Authority commissioned a consultant by name

Evonic Energy Services India Pvt Ltd in June 2008 to evaluate the

performance of TTPS and in August 2008 to evaluate the performance of

NCTPS. The consultant recorded the heat rate as 2575.31 kcal / kWh for

NCTPS and 2826 kcal / kWh for TTPS. The TNEB has prayed for

relaxation of heat rate norm to 2560 kcal / kWh for units I, II & III and

2600 kcal / kWh for units IV & V for TTPS and 2500 kcal / kWh for

NCTPS.

7.12.7 Considering that the Commission has prescribed a norm of 2500 kcal /

kWh for new plants, the Commission approves relaxation of norms for

168

TTPS and NCTPS upto 2500 kcal / kWh in terms of Clause 90 of the Tariff

Regulations 2005 for the year 2010-11.

7.12.8 The Commission allows the following station heat rate in relaxation of the

Regulation 90 of TNERC Tariff Regulations:

Table – 127 Station heat rate admitted by the Commission for existing thermal stations

Sl.No Station Heat Rate (in kcal / kWh)

1 ETPS 3200

2 TTPS 2500

3 MTPS 2500

4 NCTPS 2466

7.13 Gross Calorific Value of Coal

7.13.1 The TNEB had not furnished the Gross Calorific Value (GCV) in the ARR

statements received with original petition. The TNEB was directed to

furnish the GCV of coal.

7.13.2 In the revised formats furnished by the TNEB, they have furnished the

range of GCV as below:

Table – 128 GCV of coal furnished by TNEB (Kcal / kg)

Station 2009-10 2010-11 2011-12 2012-13

ETPS 3317 3200-3500 3200-3500 3200-3500

TTPS 3378 3200-3500 3200-3500 3200-3500

MTPS 3527 3500-3800 3500-3800 3500-3800

NCTPS 3600-3800 3600-3800 3700-3801 3700-3802

7.13.3 The average calorific values per kg of coal recorded in the Annual

Accounts Statement of the TNEB for the period from 2003-04 to 2008-09

are below:

Table – 129 Trend of GCV of existing thermal stations

(Kcal / kg)

Sl. No.

Stations 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 ETPS 3465 3380 3385 3411 3394 3396

2 TTPS 3763 3650 3353 3434 3235 3415

3 MTPS 3611 3536 3975 3723 3716 3613

4 NCTPS 3458 3336 3877 3659 3794 3743

169

7.13.4 The payments to coal suppliers are adjusted with reference to the quality /

grade of coal determined on testing of samples. It is seen that the coal

received from Mahanadhi Coal Field (MCL) were of “F” grade and from

Eastern Coal Field (ECL) were of “B and C” grades.

7.13.5 The calorific value of coal corresponding to Useful Heat Value (UHV) was

calculated with reference to moisture and ash content as furnished in the

test certificate. It was found that the GCV of coal from ECL was 6000 /

6007 Kcal / kg and the GCV of coal from MCL was 3914 Kcal / kg. The

GCV of imported coal (as received) was 5424 Kcal / kg.

7.13.6 When the coal from different sources are blended according to the

allocated quantity, the weighted average GCV of coal for each station

shall be as below:

i.TTPS - 4306 Kcal / kg

ii.MTPS - 4219 Kcal / kg

iii.NCTPS - 4346 Kcal / kg

iv.ETPS - 4323 Kcal / kg

7.13.7 The TNEB in their petition have submitted that specific consumption of

coal, furnace oil, gas and other oil for their own generating stations are

based on performance of financial year 2007-08. The TNEB has also

submitted that the consumption levels would be maintained over the

period through regular maintenance.

7.13.8 The TNEB has used projected specific consumption of coal (based on the

number arrived at with reference to energy generated and quantum of coal

consumed) i.e. the quantity of coal required for generation of one kWh of

electricity at generator terminal to project the quantum of fuel, instead of

on the basis of Station Heat Rate and calorific value of coal.

7.13.9 The TNEB has not considered the provision of the Tariff Regulations

which is mandatory.

7.13.10 The TNEB has projected the specific consumption of coal as below:

170

Table – 130 Projection of specific consumption of coal by TNEB (kg / kWh)

Sl. No.

Station 2010-11 2011-12 2012-13

1 ETPS 0.95 0.95 0.95

2 TTPS 0.77 0.77 0.77

3 MTPS 0.83 0.83 0.83

4 NCTPS 0.66 0.66 0.66

7.13.11 However, the specific consumption of coal when computed based on

normative Station Heat Rate and GCV (without taking into account of

GCV of secondary fuel) of coal will be as below:

Table – 131 Specific consumption of coal based on normative station heat rate

Sl. No.

Station Station Heat Rate

(kcal / kWh)

GCV (kcal / kg)

Specific Consumption (kg / kWh)

1 ETPS 3200 4323 0.74

2 TTPS 2500 4306 0.58

3 MTPS 2500 4219 0.59

4 NCTPS 2466 4346 0.57

7.13.12 The Commission fixes the quantity of coal based on the Station Heat

Rate and GCV of primary fuel as per provisions in the Tariff Regulations.

7.14 Secondary Fuel Oil (SFO) Consumption

7.14.1 The following normative secondary fuel oil consumption per kWh has

been specified in the Tariff Regulations:

(a) Coal based generating stations except ETPS - 2 ml / kWh

(b) ETPS -12 ml / kWh

7.14.2 The relaxed norms for ETPS were fixed when the station was under

Renovation and Modernization (R & M). The TNEB in the petition have

projected the following specific consumption for HFO (secondary fuel oil)

171

Table – 132 Specific consumption of SFO projected by TNEB

(ml / kWh)

Sl. No Station 2010-11 2011-12 2012-13

1 ETPS 6 6 6

2 TTPS 3.80 3.80 3.80

3 MTPS 1.90 1.90 1.90

4 NCTPS 1.83 1.83 1.83

7.14.3 It is assumed that the reduced specific consumption of secondary fuel i.e

6 ml / kWh projected for ETPS may be on account of Renovation and

Modernization. This is provisionally accepted.

7.14.4 The TNEB has projected higher consumption of HFO i.e., at the rate of

3.80 ml / kWh for TTPS as against the normative consumption of 2 ml /

kWh.

7.14.5 The consumption of secondary fuel oil is allowed at the normative level

except for ETPS for which a relaxed norm was already fixed. The TNEB

has projected 6 ml / kWh and this is adopted.

7.14.6 Heat contributed by secondary fuel oil:

(1) The GCV of HFO is in the order of 10000 kcal / kg or 9389.67 kcal / ltr or

9.38967 kcal / ml. The TNEB use HSD / LDO also as secondary fuel.

(2) The TNEB has stated that the actual heat contributed by the HFO and

HSD in March 2010 in various station were as below:

Table – 133 Heat contributed by SFO as projected by TNEB

Sl. No

Details ETPS TTPS MTPS NCTPS

1 Heat contributed by HFO (kcal / kg)

1 25.50

0.142 0.34

2 Heat rate of HSD (kcal / kg) 25 - 1.183 3.30

3 Total heat contributed by secondary fuel ((kcal / kg)

26 25.50 1.325 3.64

(3) The heat contributed at the normative specific consumption of secondary

fuel (kcal / 2 ml / kWh) will be as below:

172

Table – 134 Heat contributed by SFO as admitted by TNERC

(Kcal / kWh)

Sl. No Details ETPS TTPS MTPS NCTPS

1 Heat contributed at the normative specific consumption ( 2 ml / kWh for other than ETPS and 6 ml to ETPS)

56.34 18.78 18.78 18.78

(4) The statement showing the actual specific consumption of furnace oil and

LDO / HSD from 2003-04 to 2008-09 is furnished below:

Table – 135 Trend of specific fuel oil consumption

Sl.

No

Station 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

FO LDO

/

HSD

FO LDO

/

HSD

FO LDO

/

HSD

FO LDO

/

HSD

FO LDO

/

HSD

FO LDO

/

HSD

1 ETPS 8.17 0.47 3.99 0.31 4.92 1.20 8.91 2.59 4.72 1.42 7.10 1.70

2 TTPS 0.79 0.10 0.55 0.06 0.87 0.07 1.76 0.07 2.95 0.07 3.42 0.07

3 MTPS 0.51 0.03 0.33 0.03 0.34 0.03 0.35 0.03 0.43 0.04 0.63 0.29

4 NCTPS 3.81 0.20 3.61 0.15 1.67 0.20 0.71 0.12 0.58 0.12 0.78 0.13

(5) The oil Consumption in TTPS is much higher than the normative specific

consumption from 2006-07. The TNEB shall study the reasons and take

corrective action to reduce the consumption to the normative level.

7.14.7 Price of secondary fuel:

(1) The stations are predominantly using HFO as secondary fuel oil. The

TNEB has projected the following rates for HFO and HSD / LDO for the

year 2010-11.

Table – 136 Price of SFO furnished by TNEB

Station HFO (Rs / kg) HSD/LDO (Rs / kg)

ETPS 25981 43018

TTPS 24407 34291

MTPS 21627 36175

NCTPS 26514 33604

(2) The TNEB has stated the following:

173

(a) The total cost towards supply of fuel oils – HFO, HSD (ordinary /

premium) and LDO is arrived at based on the finalization of tender

annually. However, the actual price of the above fuel oil prevailing

on the date supply only shall be applicable since; the above

prices are subject to revision by the Government of India.

(b) The basic price of fuel oil is being revised on a fortnightly basis

based on Import parity, statutory levies as applicable on the date

of supply shall prevail.

(c) Globally, the oil prices are highly volatile. There is an increase of

around 25% in the contractual cost of fuel oil (HFO in 2009-10)

when compared to that of 2007-08. However, only 5% escalation

towards the cost of fuel oil has been considered.

(3) The Commission has considered the latest prevailing price communicated

by the oil suppliers to estimate the cost of secondary fuel for 2010-11 and

with an escalation of 5% for 2011-12 and 2012-13

7.14.8 Generation Tariff (Variable cost) for New Stations

7.14.8.1 The TNEB has submitted that the new generating stations to be

established at North Chennai and Mettur are linked to Mahanadhi Coal

fields for their coal requirements.

7.14.8.2 Regulation 7 (7) (i) of the TNERC Tariff Regulations specify the

following:

“A generation company or a licensee may make an application as per

Appendix – I to these Regulations, for determination of provisional tariff

in advance of the anticipated date of completion of the project, based on

the capital expenditure actually incurred upto the date of making of the

application or a date prior to making of the application, duly audited and

certified by the statutory auditors, and the provisional tariff shall be

charged from the date of commercial operation of the respective units of

the generation station or the line or sub-station of the transmission

system”.

174

7.14.8.3 The TNEB has submitted the informations in the formats only for the

existing stations. However, fuel cost for these stations have been

estimated provisionally and included in the ARR.

7.14.8.4 In respect of TNEB’s new generating units namely, NCTPS – stage II

unit 1 & 2 and MTPS stage III, only a provisional tariff is considered in

this tariff order as below:

(Rs / kWh)

Sl. NO Stations 2010-11 2011-12 2012-13

1 NCTPS 0 2.52 2.22

2 MTPS Expansion

2.96 2.68

7.14.8.5 The tariff now considred for new stations are only estimates and shall be

provisional. The TNEB shall file a separate petition in each of the above

case at an appropriate time in accordance with the Commission tariff

regulation in force.

7.14.8.6 The variable cost for each station for each year is computed as below:

7.14.9 Variable cost of coal based thermal station

(1) ETPS

Table – 137 Determination of variable cost - ETPS

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 450 450 450

2 Gross Station Heat Rate Kcal / kWh 3200 3200 3200

3 Specific fuel oil consumption Ml / kWh 6 6 6

4 Auxiliary Consumption % 14.48 14.48 14.48

5 Average calorific value of oil kcal / Kl 9389.67 9389.67 9389.67

6 Average calorific value of Coal kcal / Kg 4323 4323 4323

7 Weighted average price of oil Rs / Kl 34751 36594 38423

8 Average landed cost of coal Rs / MT 1938 1957 1977

9 Rate energy charges from Oil Ps / kWh 24.38 25.67 26.96

10 Heat contributed from Oil Kcal / kWh 56.34 56.34 56.34

11 Heat contributed from Coal Kcal / kWh 3143.66 3143.66 3143.66

175

12 Specific consumption of coal Kg / kWh 0.727 0.727 0.727

13 Rate of energy from Coal Ps / kWh 164.79 166.41 168.11

14 Rate of energy ex-bus Ps / kWh 189.17 192.08 195.07

(2) TTPS

Table – 138 Determination of variable cost - TTPS

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 1050 1050 1050

2 Gross Station Heat Rate Kcal / kWh 2500 2500 2500

3 Specific fuel oil consumption Ml / kWh 2 2 2

4 Auxiliary Consumption % 8.5 8.5 8.5

5 Average calorific value of oil kcal / Kl 9389.67 9389.67 9389.67

6 Average calorific value of Coal kcal / Kg 4306 4306 4306

7 Weighted average price of oil Rs / Kl 34834.69 36576.42 38405.25

8 Average landed cost of coal Rs / MT 3063.25 3093.883 3124.821

9 Rate energy charges from Oil Ps / kWh 7.61 7.99 8.39

10 Heat contributed from Oil Kcal / kWh 18.78 18.78 18.78

11 Heat contributed from Coal Kcal / kWh 2481.22 2481.22 2481.22

12 Specific consumption of coal Kg / kWh 0.576 0.576 0.576

13 Rate of energy from Coal Ps / kWh 192.91 194.84 196.79

14 Rate of energy ex-bus Ps / kWh 200.52 202.83 205.18

(3) MTPS

Table – 139 Determination of variable cost -MTPS

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 840 840 840

2 Gross Station Heat Rate Kcal / kWh 2500 2500 2500

3 Specific fuel oil consumption Ml / kWh 2 2 2

4 Auxiliary Consumption % 9 9 9

5 Average calorific value of oil kcal / Kl 9389.67 9389.67 9389.67

6 Average calorific value of Coal kcal / Kg 4219 4219 4219

7 Weighted average price of oil Rs / Kl 35587.56 37366.94 39235.28

8 Average landed cost of coal Rs / MT 2721.92 2749.139 2776.631

176

9 Rate energy charges from Oil Ps / kWh 7.82 8.21 8.62

10 Heat contributed from Oil Kcal / kWh 18.78 18.78 18.78

11 Heat contributed from Coal Kcal / kWh 2481.22 2481.22 2481.22

12 Specific consumption of coal Kg / kWh 0.588 0.588 0.588

13 Rate of energy from Coal Ps / kWh 175.91 177.67 179.45

14 Rate of energy ex-bus Ps / kWh 183.73 185.88 188.07

(4) NCTPS

Table – 140 Determination of variable cost -NCTPS

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 630 630 630

2 Gross Station Heat Rate Kcal / kWh 2466 2466 2466

3 Specific fuel oil consumption Ml / kWh 2 2 2

4 Auxiliary Consumption % 8.5 8.5 8.5

5 Average calorific value of oil kcal / Kl 9389.67 9389.67 9389.67

6 Average calorific value of Coal kcal / Kg 4346 4346 4346

7 Weighted average price of oil Rs / Kl 34751 36594 38423

8 Average landed cost of coal Rs / MT 2297.57 2320.546 2343.751

9 Rate energy charges from Oil Ps / kWh 7.60 8.00 8.40

10 Heat contributed from Oil Kcal / kWh 18.78 18.78 18.78

11 Heat contributed from Coal Kcal / kWh 2447.22 2447.22 2447.22

12 Specific consumption of coal Kg / kWh 0.563 0.563 0.563

13 Rate of energy from Coal Ps / kWh 141.39 142.81 144.24

14 Rate of energy ex-bus Ps / kWh 148.99 150.81 152.63

7.14.10 Energy (Variable) Charges of Gas Based Thermal Stations:

7.14.10.1 Normative Station Heat Rate for gas turbine / combined cycle

generating station:

(1) The following heat rates have been specified in the TNERC Tariff

Regulations:

177

Table – 143 Normative Station Heat Rate for GTS

Advanced class machine

E/.EA/EC/E2 class machine

Open Cycle 2685 Kcal / kWh 2830 Kcal / kWh

Combined cycle 1850 Kcal/ kWh 1950 Kcal / kWh

(2) The Basin Bridge Gas Turbine Power Station (BBGTPS) is operated

under open cycle with Naphtha as fuel and all other stations are combined

cycle generating station with gas as fuel.

(3) The station heat rates furnished by the TNEB are as below:

Table – 144 station heat rates furnished by the TNEB

(in kcal / kWh)

Sl.

No

Station 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1 BBGTPS 3158 3127 3233 /

3230

3230 3230 3230

2 Kovilkalappal 1888.88 1884.21 1916 1872 1872.45 1872.45

3 Valuthur I 1852 1663 1788 1762.20 1886 1886.38

4 Valuthur II - 2459 1830 1753.85 1726 1726.01

5 Kuttalam 1869 1792 1824 1803 1820 1851

(4) Except the machines at BBGTPS, the machines at other stations are of

Advance class machines and hence the normative Gross Station Heat

Rate of 1850 kcal / kWh is applicable. The normative heat rate is adopted

for all gas station except BBGTPS. For BBGTPS, the heat rate proposed

by the TNEB is adopted to compensate the start up fuel.

7.14.10.2 Gross Calorific Value

(1) The GCV of Naphtha and Gas furnished by the TNEB are detailed below:

Table – 144 GCV of Naphtha and Gas furnished by the TNEB

(kcal / kg and Kcal / Scm) Sl.

No

Station 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

1 BBGTPS 10574 10572 10572 10572 10572 10572

178

10249 10249 10249 10249 10249 10249

2 Kovilkalappal 9746.56 9607 9658 9660 9660 9660

3 Valuthur I 8832 8791 8811 8811 8811 8811

4 Valuthur II - 8774 8811 8811 8811 8811

5 Kuttalam 9475.20 9406 9529 9375 9400 9563

(2) In respect of gas fired generating station, the TNEB make payment at the

rate for 1000 scm for 10000 kcal / Scm and whenever the GCV is less

than 10000 kcal / scm, proportionate rebate is allowed.

(3) The quantum of gas required is arrived at taking the GCV of gas at 10000

Kcal. The Government of India has ordered the revision price of gas

under Administered Price Mechanism (APM) as 4.20 USD for 251548.43

kcal. The revised price is to take effect from 01-06-2010. The revised

APM price is converted into Rupee and to the calorific value of 10000 kcal

/ scm.

(4) For the gas based thermal station at Valuthur, 30% requirement is met

under Market Driven Price (MDP) and the balance under APM.

(5) The energy (variable) charges for the gas based thermal station are

determined as below:

7.14.10.3 Variable cost of Gas based Thermal Generating Stations

(1) Kovilkalappal

Table – 145 Variable cost of GTS - Kovilkalappal

Sl. No Description Unit

2010-11 2011-12 2012-13

1 Capacity MW 107.88 107.88 107.88

2 Gross Station Heat Rate Kcal / kWh 1850 1850 1850

3 Auxiliary Consumption % 6 6 6

4 Average calorific value of Gas Scm 10000 10000 10000

5 Average cost of Gas Rs / Scm 7.92 8.77 8.77

6 Rate of energy from Gas Ps / kWh 155.87 172.60 172.60

7 Net Generation MU 610 610 610

8 Total energy cost Rs / Crores 95.08 105.29 105.29

179

9 Fixed Transport Charges Rs / Crores 4.67 4.67 4.67

10 Total Variable Cost Rs / Crores 99.75 109.96 109.96

11 Net Energy charges per unit Ps / kWh 163.53 180.26 180.26

2) Kuttalam

Table – 146 Variable cost of GTS - Kuttalam

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 101 101 101

2 Gross Station Heat Rate Kcal / kWh 1850 1850 1850

3 Auxiliary Consumption % 6 6 6

4 Average calorific value of Gas Scm 10000 10000 10000

5 Average cost of Gas Rs / Scm 7.92 8.77 8.77

6 Rate of energy from Gas Ps / kWh 155.87 172.60 172.60

7 Net Generation MU 641 641 641

8 Total energy cost Rs / Crores 99.91 110.64 110.64

9 Fixed Transport Charges Rs / Crores 7.11 7.11 7.11

10 Total Variable Cost Rs / Crores 107.02 117.75 117.75

11 Net Energy charges per unit Ps / kWh 166.96 183.69 183.69

3) Valuthur I

Table – 147 Variable cost of GTS – Valuthur-I

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 95 95 95

2 Gross Station Heat Rate Kcal / kWh 1850 1850 1850

3 Auxiliary Consumption % 6 6 6

4 Average calorific value of Gas Scm 10000 10000 10000

5 Average cost of Gas Rs / Scm 8.78 8.79 8.79

6 Rate of energy from Gas Ps / kWh 172.80 172.99 172.99

7 Net Generation MU 560 560 560

8 Total energy cost Rs / Crores 96.77 96.88 96.88

9 Fixed Transport Charges Rs / Crores 1.79 1.79 1.79

10 Total Variable Cost Rs / Crores 98.56 98.67 98.67

11 Net Energy charges per unit Ps / kWh 175.99 176.19 176.19

180

4) Valuthur II

Table – 148 Variable cost of GTS – Valuthur-II

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 92 92 92

2 Gross Station Heat Rate Kcal / kWh 1850 1850 1850

3 Auxiliary Consumption % 6 6 6

4 Average calorific value of Gas Scm 10000 10000 10000

5 Average cost of Gas Rs / Scm 7.76 8.79 8.79

6 Rate of energy from Gas Ps / kWh 152.72 172.99 172.99

7 Net Generation MU 446 594 594

8 Total energy cost Rs / Crores 68.11 102.76 102.76

9 Fixed Transport Charges Rs / Crores 1.79 1.79 1.79

10 Total Variable Cost Rs / Crores 69.90 104.55 104.55

11 Net Energy charges per unit Ps / kWh 156.74 176.01 176.01

5) BBGTPS

Table – 149 Variable cost of GTS – BBGTPS

Sl. No Description Unit 2010-11 2011-12 2012-13

1 Capacity MW 120 120 120

2 Gross Station Heat Rate Kcal / kWh 3230 3230 3230

3 Auxiliary Consumption % 1.00 1.00 1.00

4 Average calorific value of Naphtha kcal / kg 10572 10572 10572

5 Average cost of Naphtha Rs / Kg 47.92 50.316 52.8318

6 Rate of energy from Naphtha Ps / kWh 1472.61 1546.24 1623.56

7 Net Generation MU 60 60 60

8 Total energy cost Rs / Crores 88.36 92.77 97.41

7.14.10.4 In this connection, the provision in Regulation 43 (iii) of the TNERC

tariff Regulation is reproduced below:

181

“(iii) Adjustment of rate of energy charge (REC) on account of variation in

price or heat value of fuels

Initially, Gross Calorific Value of coal/lignite or gas or liquid fuel shall be taken

as per actuals of the preceding three months. Any variation shall be adjusted on a

month to month basis on the basis of average Gross Calorific Value of

coal/lignite or gas or liquid received and burnt and weighted average landed cost

incurred by the Generating Company for procurement of coal/lignite, oil, or gas

or liquid fuel, as the case may be for a Power Station.

In its bills, Generating Company shall indicate rate of energy charges at base

price of primary and secondary fuel specified by the Commission and the fuel

price adjustment to it separately.

No separate petition need to be filed with the Commission for fuel price

adjustment”.

7.14.10.5 The transaction for sale of energy or transfer price of energy shall be

adjusted accordingly.

7.14.11 Tariff to Hydro Generating Station

7.14.12 The generation circles and the total installed capacity of the hydel

generating stations under the jurisdiction of TNEB are as below:

Table – 150 Installed capacity of Hydro Generating Stations

Sl. No. Generation Circles Installed capacity in MW

1 Generation Erode 421.00

2 Generation Kundah 833.40

3 Generation Kadamparai 595.45

4 Generation Tirunelveli 334.30

5 Total 2184.15

.

7.14.13 As the Circles do not have separate accounts for each of the

generating stations in their area, single generation tariff for all the

stations in the jurisdiction of each circle will be determined.

182

7.14.14 Regulation 49 of the TNERC Tariff Regulations specifies the following:

“49 components of tariff

Tariff for sale of electricity from a hydro power generating station shall

comprise of two parts namely, the recovery of annual capacity charges

and energy charges to be worked out in the manner provided hereinafter”.

7.14.15 Regulation 53 of the TNERC Tariff Regulations specifies the following:

“53. Computation of Annual Energy Charges.

The two part tariff for sale of electricity from a hydro power generating station

shall comprise a recovery of annual capacity (fixed) charges and primary

energy charges.”

7.14.16 The annual capacity (fixed) charges shall consist of the following and

shall be computed as per the principles in Chapter III.

(a) Interest on Loan Capital

(b) Depreciation

(c) Return on equity

(d) Operation and Maintenance expenses excluding operating

expenses like water charges, lubricants, consumables and

station supplies.

(e) Interest on Working Capital

7.15 The Regulation 54 of TNERC Tariff Regulations specifies the following:

54) Energy Rate-

Energy charges per kWh shall be arrived at as below:

Annual Capacity Charges + Annual Primary Energy Charges Energy rate = ---------------------------------------------------------------------------------

Saleable Energy

7.15.1.1 Determination of Annual Capacity Charges

7.15.1.2 The elements constituting fixed charges have been computed and

allocated to generating stations in the chapters as detailed below:

183

Table – 151 Elements of Fixed Charges

Sl. No Fixed Charges component Reference to chapter / para

1 Depreciation 6.5.5 2 Interest on Loan Capital 6.3.21

3 Return on Equity 6.4.7

4 Operation & Maintenance Expenses

6.11.2

7.15.1.3 The fixed (annual capacity) charges for the group of generating

stations in each circle claimed by TNEB and approved by the

Commission are as below:

(a) Erode Circle

Table – 152 Fixed Charges approved by the Commission for Erode Generation Circle

(Rs.in Crores)

TNEB TNERC Tariff Component 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 14.76 14.90 15.04 22.41 35.01 37.18

Interest on Loan 59.13 70.15 77.42 86.23 141.79 119.20

Return on Equity 12.86 16.57 20.28 8.63 9.71 9.66

O&M expenses 28.67 29.82 31.01 35.71 41.40 44.51

Other Debits 0.62 0.66 0.62

Less; Misc Income 0.75 0.75 0.75

Total 115.42 131.44 143.75 152.85 227.82 210.42

(b) Kadamparai Circle

Table – 153 Fixed Charges approved by the Commission for Kadamparai Generation

Circle (Rs.in Crores)

TNEB TNERC Tariff Component

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 9.03 9.08 9.12 11.52 11.52 11.52

Interest on Loan 31.08 36.87 40.7 30.51 25.41 24.31

Return on Equity 6.76 8.71 10.66 4.17 3.01 2.99

O&M expenses 24.98 25.98 27.02 30.38 32.41 34.50

Other Debits 0.30 0.20 0.19

Less; Misc Income 0.13 0.13 0.13

Total 71.85 80.64 87.5 76.75 72.42 73.38

184

(c) Kundah Circle

Table – 154 Fixed Charges approved by the Commission for Kundah Generation Circle

(Rs.in Crores)

TNEB TNERC Tariff Component

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 22.57 22.97 23.37 30.07 30.07 30.07

Interest on Loan 81.1 96.21 106.19 108.16 91.59 89.27

Return on Equity 17.64 22.73 27.81 10.89 7.85 7.81

O&M expenses 40.44 42.05 43.74 47.69 50.40 53.25

Other Debits 0.78 0.53 0.50

Less; Misc Income 0.96 0.96 0.96

Total 161.75 183.96 201.11 196.63 179.48 179.94

(d) Tirunelveli Circle

Table – 155 Fixed Charges approved by the Commission for Tirunelveli Generation

Circle

(Rs.in Crores)

TNEB TNERC Tariff Component 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Depreciation 7.74 8.63 9.63 9.69 11.28 11.29

Interest on Loan 23.29 27.63 30.5 42.13 34.13 32.08

Return on Equity 5.07 6.53 7.98 3.81 2.95 2.93

O&M expenses 31.38 32.63 33.94 35.70 38.87 41.59

Other Debits 0.27 0.20 0.19

Less; Misc Income 0.50 0.50 0.50

Total 67.48 75.42 82.05 91.10 86.93 87.58

7.15.1.4 Primary Energy Charges

7.15.2 The Regulation 53 (3) of TNERC Tariff Regulations specifies the following:

“(3) Primary Energy Charges shall be the operating expenses like cost of

water, lubricants, consumables and station supplies”

7.15.3 The TNEB has not claimed operating charges separately for hydro

stations. They have claimed the following charges for all the generating

stations including thermal generating stations.

185

Table – 156 Operating Charges for all the generating stations including thermal

generating stations.

(Rs.in Crores) Sl. No Particulars 2010-11 2011-12 2012-13

1 Cost of water 21.36 21.36 21.36

2 Cost of lubricants and

consumables

10.38 10.38 10.38

3 Other fuel cost 10.32 10.32 10.32

4 Total 42.06 42.06 42.06

7.15.4 The operating expenses like lubricants, water charges, etc, for the hydro

stations have been projected based on the average of water charges,

lubricants consumed by the station during the years 2007-08 and 2008-09

as below:

Table – 157 Operating Charges for Hydro generating circles

(Rs.in Crores)

Year Erode Kundah Kadamparai Tirunelveli

2010-11 0.13 0.01 0.16 0.21

2011-12 0.13 0.01 0.16 0.21

2012-13 0.13 0.01 0.16 0.22

7.15.4.1 Energy Rate

(1) The energy charges per kWh for the group of hydel generating station

in each of the circles are determined as below:

(a) Erode Circle

Table – 158 Energy Charges for Hydro generation - Erode circle

Particulars Units 2010-11 2011-12 2012-13

Annual Capacity Charges

(Rs. in Crores) 152.85 227.82 210.42

Primary Energy Charges

(Rs. in Crores) 0.13 0.13 0.13

Total Energy Charges (Rs. in Crores) 152.98 227.95 210.55

Net Generation (in MU) 918 937 1090

Energy Rate (in paise / unit) 1.67 2.43 1.93

186

(b) Kadamparai Circle

Table – 159 Energy Charges for Hydro generation - Kadamparai circle

Particulars Units 2010-11 2011-12 2012-13

Annual Capacity Charges

(Rs. in Crores) 76.75 72.42 73.38

Primary Energy Charges

(Rs. in Crores) 0.16 0.16 0.16

Total Energy Charges (Rs. in Crores) 76.91 72.58 73.54

Net Generation (in MU) 934 937 937

Energy Rate (in paise / unit) 0.82 0.77 0.78

(c) Kundah Circle

Table – 160 Energy Charges for Hydro generation - Kundah circle

Particulars Units 2010-11 2011-12 2012-13

Annual Capacity Charges

(Rs. in Crores) 196.63 179.48 179.94

Primary Energy Charges

(Rs. in Crores) 0.01 0.01 0.01

Total Energy Charges (Rs. in Crores) 196.64 179.49 179.95

Net Generation (in MU) 1816 1816 1817

Energy Rate (in paise / unit) 1.08 0.99 0.99

(d) Tirunelveli Circle

Table – 161 Energy Charges for Hydro generation - Tirunelveli circle

Particulars Units 2010-11 2011-12 2012-13

Annual Capacity Charges

(Rs. in Crores) 91.10 86.93 87.58

Primary Energy Charges

(Rs. in Crores) 0.21 0.21 0.22

Total Energy Charges (Rs. in Crores) 91.31 87.14 87.80

Net Generation (in MU) 729 748 757

Energy Rate (in paise / unit) 1.25 1.16 1.16

7.15.4.2 Determination of Tariff for the Wind Energy generated in the Wind

Mills owned by TNEB

(1) TNEB has not submitted separate proposal for determination of Tariff for

the electricity generated in the wind mills owned by TNEB and distributed

187

by them. In the petition they have not projected the quantum of energy

from 17.555 MW capacity wind mills owned by TNEB separately. The

charges therefore have also not been furnished.

(2) The Board’s wind mills were installed as demonstration wind mills against

contribution / grants.

(3) The Commission directed the TNEB to furnish the Asset value of wind

mills and the quantum of contribution by segregating value of link lines

included in the generation asset.

(4) The TNEB has furnished the quantum of energy to be generated during

the control period. But the details of wind mill assets have not been

furnished.

(5) Regulation 1 (6) of the Tariff Regulation specify the following:

“They shall not be applicable to co-generation, captive power plants and

generation of electricity from renewable sources of energy including mini

hydro projects (covered under Non-Conventional Energy Sources), which

will be covered by a separate Regulation to be specified by the

Commission under clause (e) of sub-section (1) of Section 86 of the

Electricity Act 2003 for promotion of such generation.”

(6) Regulation 5 and 6 of the Power Procurement from New and Renewable

Sources of Energy Regulations, 2008 specified under section 86 (1) (c) of

the Electricity Act 2003, stipulates the following:

“(5) While determining the tariff the Commission may adopt appropriate

financial and operational parameters

(6) While determining the tariff the Commission may adopt appropriate

tariff methodology”

(7) In the Commission’s order No.3 dated 15-05-2006, the cost plus, single

part average tariff was adopted for the power being purchased from

private wind energy promoters. The Commission in its order No.1 of 2009

dated 20-03-2009 has decided to continue the same methodology of

tariff.

188

(8) The Board’s wind mills were installed during the period from 1986 to 1993

as demonstration wind mills and the capitalized values of assets,

depreciation, etc, has not been furnished by TNEB.

(9) In the order No.3 dated 15-05-2006, the Commission has determined a

tariff of Rs.2.75 / unit for the “wind power projects commissioned, and to

be commissioned based on agreements executed prior to the date of this

order.”

(10) In view of order No.3 dated 15-05-2006, the single part tariff of Rs.2.75

per unit shall be applicable to all generation from the wind mill

established by TNEB.

(11) In view of the above, the wind mills assets shall not be included for

calculation of fixed charges elements separately.

7.15.5 Taking into consideration of the above, the cost of generation is arrived as

below:

Year: 2010-11

Table – 162 Cost of generation from TNEB owned generating plants for the year 2010-11

Sl. No.

Station Net Generation (in MU)

VC. (Ps / unit

Total VC (Rs.in Crs)

Capacity charges (Rs.in Crs)

Total charges (Rs.in Crs)

Cost (Rs / Unit)

I Coal based

1 ETPS 1713 189.17 324.05 243.38 567.43 3.31

2 TTPS 7576 200.52 1519.14 308.77 1827.91 2.41

3 MTPS 6143 183.73 1128.65 169.49 1298.14 2.11

4 NCTPS 4383 148.99 653.02 327.58 980.60 2.24

5 Total Coal 19815 182.94 3624.86 1049.22 4674.08 2.36

II Gas Base

1 Kuttalam 641 166.96 107.02 66.8 173.82 2.71

2 Kovil Kalappal 610 163.53 99.75 59.28 159.03 2.61

3 Valuthur 1006 176.86 177.92 152.39 330.31 3.28

4 BBGTPS 60 1472.61 88.36 55.36 143.72 23.95

5 Total Gas 2317 473.05 333.83 806.88 3.48

III Hydro

1 Erode 918 152.98 1.67

2 Kundah 1816 196.64 1.08

3 Kadamparai 934 76.91 0.82

4 Tirunelveli 729 91.31 1.25

189

5 Total Hydro 4397 517.84 1.18

IV Grand Total 26529 5998.81 2.26

Year: 2011-12

Table – 163 Cost of generation from TNEB owned generating plants for the year 2011-12

Sl. No.

Station Net Generation (in MU)

VC. (Ps / unit

Total VC (Rs.in Crs)

Capacity charges (Rs.in Crs)

Total charges (Rs.in Crs)

Cost (Rs / Unit)

I Coal based

1 ETPS 1713 192.08 329.03 232.86 561.89 3.28

2 TTPS 7576 202.83 1536.64 288.22 1824.86 2.41

3 MTPS 6143 185.88 1141.86 161.58 1303.44 2.12

4 NCTPS 4383 150.81 661.00 306.08 967.08 2.21

5 MTPS stage III 2547 755.01 2.96

6 NCTPS stage II 3837 965.81 2.52

7 Total Coal 26199 4630.75164 1747.35 6378.10164 2.43

II Gas Base

1 Kuttalam 641 183.69 117.75 60.25 178.00 2.78

2 Kovil Kalappal 610 180.26 109.96 52.97 162.93 2.67

3 Valuthur 1154 176.1 203.22 134.11 337.33 2.92

4 BBGTPS 60 1546.24 92.77 49.1 141.87 23.65

5 Total Gas 2465 523.70 296.43 820.13 3.33

III Hydro

1 Erode 937 227.95 2.43

2 Kundah 1816 72.58 0.40

3 Kadamparai 937 179.49 1.92

4 Tirunelveli 748 87.14 1.16

5 Total Hydro 4438 567.16 1.28

IV Grand Total 33102 7765.39 2.35

Year: 2012-13

Table – 164 Cost of generation from TNEB owned generating plants for the year 2012-13

Sl. No.

Station Net Generation (in MU)

VC. (ps / unit

Total VC (Rs.in Crs)

Capacity charges (Rs.in Crs)

Total charges (Rs.in Crs)

Cost (Rs / Unit)

I Coal based

1 ETPS 1713 195.07 334.15 236.36 570.51 3.33

2 TTPS 7576 205.18 1554.44 289.12 1843.56 2.43

3 MTPS 6143 188.07 1155.31 163.36 1318.67 2.15

4 NCTPS 4383 152.63 668.98 305.34 974.32 2.22

5 MTPS stage III 3827 1026.31 2.68

190

6 NCTPS stage II 7696 1611.08 2.09

7 Total Coal 31338 5447.64 1896.82 7344.46 2.34

II Gas Base

1 Kuttalam 641 183.69 117.75 59.84 177.59 2.77

2 Kovil Kalappal 610 180.26 109.96 52.2 162.16 2.66

3 Valuthur 1154 176.1 203.22 133.04 336.26 2.91

4 BBGTPS 60 1623.56 97.41 47.38 144.79 24.13

5 Total Gas 2465 528.34 292.46 820.80 3.33

III Hydro

1 Erode 1090 210.55 1.93

2 Kundah 1817 73.54 0.40

3 Kadamparai 937 179.95 1.92

4 Tirunelveli 757 87.80 1.16

5 Total Hydro 4601 0 0 0 551.84 1.20

IV Grand Total 38404 2189.28 8717.10 2.27

7.15.6 The abstract of station wise generation cost for the control period is as

below

Table – 165 Abstract of station wise generation cost for the control period

2010-11 2011-12 2012-13

Sl. No.

Station Total Units (in MU)

Total cost (Rs in Crores)

cost per unit (Rs / unit)

Total Units (in MU)

Total cost (Rs in Crores)

cost per unit (Rs / unit)

Total Units (in MU)

Total cost (Rs in Crores)

cost per unit (Rs / unit)

I Coal based

1 ETPS 1713 567.43 3.31 1713 561.89 3.28017 1713 570.51 3.33

2 TTPS 7576 1827.91 2.41 7576 1824.86 2.41 7576 1843.56 2.43

3 MTPS 6143 1298.14 2.11 6143 1303.44 2.12 6143 1318.67 2.15

4 NCTPS 4383 980.60 2.24 4383 967.08 2.21 4383 974.32 2.22

5 MTPS stage III 0 0.00 0.00 2547 755.01 2.96 3827 1026.30 2.68

6 NCTPS stage II 0 0.00 0.00 3837 965.81 2.52 7696 1611.08 2.09

Total Coal 19815 4674.08 2.36 26199 6378.10 2.43 31338 7344.46 2.34

II Gas Based

1 Kuttalam 641 173.82 2.71 641 177.99 2.78 641 177.58 2.77

2 Kovil Kalappal 610 159.03 2.61 610 162.92 2.67 610 162.15 2.66

3 Valuthur 1006 330.31 3.28 1154 337.32 2.92 1154 336.25 2.91

BBGTPS 60 143.72 23.95 60 141.87 23.65 60 144.79 24.13

5 Total Gas 2317 806.88 3.48 2465 820.1277 3.33 2465 820.79 3.33

III Hydro

1 Erode 918 152.98 1.67 937 227.95 2.43 1090 210.55 1.93

2 Kundah 1816 196.64 1.08 1816 72.58 0.40 1817 73.54 0.40

3 Kadamparai 934 76.91 0.82 937 179.49 1.92 937 179.95 1.92

4 Tirunelveli 729 91.31 1.25 748 87.14 1.16 757 87.8 1.16

Total Hydro 4397 517.84 1.18 4438 567.16 1.28 4601 551.84 1.20

IV Grand Total 26529 5998.81 2.26 33102 7765.39 2.35 38404 8717.10 2.27

191

CHAPTER 8

8.1 Determination Annual Transmission Charges 8.1.1 Regulation 6 of TNERC (Terms and conditions for Determination of Tariff

for Intra-State Transmission / Distribution of Electricity under MYT frame

work) Regulations 2009 specifies the following:

“6 (1) the State Transmission Utility / Transmission Licensee shall make

an application for determination of transmission tariff for each of the

control period in accordance with the provisions in Tariff Regulations

2005”

8.1.2 Regulation 6 of TNERC Tariff Regulations 2005 specifies the following:

“6. (1) The licensee may file the application for determination of tariff in

Form 1 in Annexure 1 to the TNERC Conduct of Business Regulations.

The tariff changes should normally be applied for to take effect from the 1st

day of ensuing financial year and hence the application shall be filed

before 30th November of Current Year along with Aggregate Revenue

Requirement (ARR).

(2) The application shall be accompanied by the fees specified in the

TNERC Fees and Fines Regulations and verified by an affidavit in Form 2

specified in Annexure 2 to the TNERC Conduct of Business Regulations.

(3) The application for determination of tariff for the existing Generating

Stations and Transmission System shall be accompanied by information in

the respective formats appended to these Regulations duly furnishing the

figures for the previous year, current year and ensuing year.”

8.1.3 Regulation 14 of TNERC MYT Regulation specifies the following:

“14 wherever the Licensee is functioning as an integrated utility, the

transmission cost is to be segregated and projected for each year of

control period.”

8.1.4 The Commission in its order No.2 dated 15-05-2006, on Transmission and

wheeling charges, etc., had issued the following directives.

192

• In the changing scenario, it is imperative that the function wise accounting

is maintained as a whole, to avoid various assumptions when called for to

furnish the function wise information for regulatory purposes.

• The Regulation 62 of the TNERC Tariff Regulation specifies that “The

transmission licensee / STU shall endeavour to maintain separate function

wise accounts for transmission system and furnish the revenue

requirement line wise, voltage wise, bay wise and load dispatch centre

wise”

8.1.5 The TNEB had not complied with the above provisions while filing petition

for determination of tariff.

8.1.6 In the petition the TNEB has submitted a comprehensive Aggregate

Revenue Requirement for all functions, while the Regulations and

directives warrant the TNEB, to furnish informations for different functions

in distinct formats specified in the Regulations.

8.1.7 The Commission in its letter dated 22-01-2010, directed the TNEB to

segregate the transmission assets and liabilities, revenue and expenditure

and to furnish transmission charges separately.

8.1.8 The TNEB in their letter dated 24-02-2010, furnished the value of

transmission assets, depreciation, interest on loan capital and O & M

expenses.

8.1.9 The TNEB furnished the value of gross block of transmission assets at the

end of each year as detailed below:

Table – 166 Gross block of transmission assets furnished by TNEB

Year Gross block at the end of the year (Rs. In Crores)

2007-08 7224.63

2008-09 7690.58

2009-10 8403.30

2010-11 9187.32

2011-12 10050.30

2012-13 11000.73

8.1.10 The value of gross block of the transmission assets as at the end of 2007-

08 as per audited annual statement of accounts of TNEB for the year

193

2007-08 was Rs.6017.42 Crores. The TNEB was asked to clarify the

increased value of assets.

8.1.11 The TNEB furnished the following reply:

The Board’s restructuring and bifurcation assignment has been awarded

to a consultant. The proposal is under study by the Board. The generation

and transmission assets have been segregated as per ESSAR 1985.

However, the distribution assets which contain transmission assets have

been segregated based on the ratio adopted by the consultant. Based on

the above, the segregation of assets for the year 2007-08 and 2008-09

has been arrived.

8.1.12 The Commission decides to adopt the value as per the audited accounts

of 2007-08. Once the transfer scheme is finalized and issued, the same

could become the basis of future tariff setting. The methodology adopted

by the Commission would not affect the interest of petitioner in any way.

8.1.13 The wind energy development circles are facilitating development of

private wind mill projects and establishing infrastructures to evacuate

power from private wind mills. Transmission assets created by these

circles have been accounted for as generation assets. The value of sub-

stations and transmission lines of voltages above 66 kV have been

segregated and included in the transmission assets for the purpose of

arriving at the annual transmission charges. The proposed capital

expenditures on transmission assets by these circles are also allotted to

transmission.

8.1.14 The TNEB furnished the capital investment plan for transmission assets

without voltage wise number of sub-stations and length of transmission

lines. The Commission directed the TNEB to furnish the details of

associated transmission system for the proposed addition to the

generation capacity.

8.1.15 The TNEB subsequently furnished the details of associated transmission

system. However, the corresponding (estimated) value of the transmission

system has not been furnished.

194

8.1.16 The Commission has therefore provisionally adopted the value in the

capital investment plan for the purpose of capitalization.

8.1.17 The Commission fixes the value of gross block of transmission assets is

as below.

Table – 167 Gross block of transmission assets fixed by TNERC

(Amount in Rs Crores)

2009-10 2010-11 2011-12 2012-13

Closing balance at

the beginning

6667.99* 7632.80 8520.60 10241.32

Add: Additions 964.81 887.80 1720.72 771.59

Balance at the end

of the year

7632.80 8520.60 10241.32 11172.21

* Rs.6518.71 at the end 2008-09 as per balance sheet plus Rs.149.28 Crores transferred

from wind mill assets.

8.1.18 Determination of annual transmission charges

(1) Regulation 59 of TNERC Tariff Regulations 2005, specifies the following:

“59 Transmission Tariff Charges

The tariff for transmission of electricity by a transmission system shall

comprise recovery of annual transmission charges consisting of the

following computed as per the principles outlined in Chapter III of these

Regulations.

(i) Interest on Loan Capital;

(ii) Depreciation

(iii) Operation and Maintenance Expenses;

(iv) Interest on Working Capital at normative availability; and:

(v) Return on equity:

The annual transmission charges computed as per this Regulation shall

be total aggregate revenue requirement of the STU / Transmission

licensee.”

195

(2) The various components of transmission charges have been determined

in the chapter referred to below:

Table – 168 Elements of transmission charges

Sl. No Fixed Charges component Reference to chapter / para

1 Depreciation 6.5.5

2 Interest on Loan Capital 6.3.21

3 Return on Equity 6.4.7

4 Operation & Maintenance Expenses

6.11.2

(3) The total annual transmission charges shall be as below:

Table – 169 Transmission Charges approved by TNERC

(Rs.in Crores)

TNEB TNERC Sl.

No

Particulars

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

1 Depreciation 351.97 387.64 427.20 267.57 310.93 351.95

2 Interest on Loan 822.85 1032.51 1160.53 1023.39 1094.49 1158.59

3 Return on Equity 149.65 192.77 235.89 102.15 88.52 94.68

4 O & M Expenses 462.80 481.30 500.55 487.71 521.36 558.02

5 Other Debits 7.28 5.98 6.04

5 Interest on Working

Capital

52.58 60.15 66.22 0 0 0

6 Total Annual

Transmission

Charges

1839.85 2154.37 2390.39 1888.10 2021.28 2169.28

(4) Regulation 59 of the Tariff Regulation specifies that the annual

transmission charges computed as per the Regulation shall be the total

annual revenue requirement of the STU / Transmission Licensee and the

following shall be deducted from the total revenue requirement to arrive at

the charges recoverable from the long term open access customer.

(a) Transmission charges collected from the short-term Intra-State

open access customers, Captive power plant and generating

stations using non-conventional energy sources.

196

(b) Income from other business to the extent of portion to be passed

on to the beneficiaries and

(c) Reactive energy charges and transmission charges received from

CTU for use of facilities of licensee.

(5) The short-term open charges and other income have been projected

based on the actuals for the year 2008-09.

(6) The net provisional annual transmission charges to be recovered from the

distribution licensee after deducting short-term open access charges

collected, Income from other sources are tabulated as below:

Table – 170 Net provisional annual transmission charges to be recovered from the distribution licensee

(Amount in Rs Crores)

TNEB TNERC Sl. No

Particulars

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

1 Total Annual Transmission Charges

1839.85 2154.37 2390.39 1888.10 2021.28 2169.28

2 Less: Short-Term Open Access Charges

97.26 99.20 101.19

Less: Misc. Income 5.00 5.50 6.00

3 Net Annual Transmission Charges

1839.85 2154.37 2390.39 1785.84 1916.58 2062.09

(7) The provisional transmission charges shall be revisited and finalized in

accordance with regulation 57 and 6 of Tariff Regulation, 2005.

197

CHAPTER 9

TARIFF FOR RETAIL DISTRIBUTION

9.1 Regulation 68 of the TNERC Tariff Regulations specifies the following:

“68 Component of tariff for supply of electricity

(1) The charges for the electricity supplied by the Distribution licensee may include:-

(a) a fixed charges / Demand Charges;

(b) Charges for actual electricity supplied;

(c) a rent or other charge in respect of meter or electrical plant provided by the

Distribution licensee;

(2) Rent for meter provided by the licensee and other charges are treated as non-

tariff charges and shall be determined by the Commission in accordance with the

provision of Tamil Nadu Electricity Supply Code and Tamil Nadu Electricity

Distribution Code.

(3) Charges for actual electricity supplied and fixed charges are tariff related charges

and the Commission shall determine these charges on an application from the

Distribution licensee.”

9.2 Under Regulation 69 (1) of the Tariff Regulation 2005, the Distribution

licensee shall file application for retail distribution of electricity along with

Aggregate Revenue Requirement (ARR).

9.3 Regulation 70 of the Tariff Regulations 2005 specifies the following:

“70. The Aggregate Revenue Requirement of Distribution licensee

The Aggregate Revenue Requirement of Distribution licensee consists of the

following:-

(i) Cost of Power Purchase

(ii) Operation and Maintenance expenses

(iii) Depreciation

(iv) Interest and cost of finance

(v) Income Tax

(vi) Provision for Bad and Doubtful Debts

(vii) Provision for Insurance

(viii) Provision for contingency reserve

(ix) other expenses

(x) Return on equity / Reasonable rate of return”

198

9.4 The components of ARR are discussed below:

9.4.1 Cost of Power Purchase

9.4.1.1 In the ARR the TNEB has claimed the following as power purchase

cost for the control period:

Particulars 2010-11 2011-12 2012-13

Power purchase 16527.84 15141.12 16440.10

9.4.1.2 The claim was examined with reference to the energy requirement and

source of purchase.

9.4.1.3 The power purchase cost admitted by the Commission is discussed in

chapter 5

9.4.1.4 The power purchase cost claimed by TNEB and admitted by the

Commission are as below:

Table – 171 Power purchase cost admitted by TNERC

(Rs. in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Power

Purchase

cost

16527.84 15141.12 16440.10 16202.67 13835.73

11371.78

9.4.2 Annual Transmission Charges

9.4.2.1 The TNEB has claimed the charges relating to the transmission facility

along with the charges for other functions.

9.4.2.2 The Commission has determined the charges for the transmission

facilities of the TNEB separately in chapter 8.

9.4.2.3 The transmission charges are payable by the distribution licensee once

the transfer scheme under section 131 of the Act is given effect to. It is

therefore included in the ARR of the distribution licensee separately.

9.4.2.4 The quantum of transmission charges determined by the Commission

is as below:

199

Table – 172 Annual transmission charges approved by TNERC

Particulars 2010-11 2011-12 2012-13

Annual Transmission

charges (Rs. in Crores)

1785.84 1916.58 2062.09

9.4.3 Fuel Cost

9.4.3.1 The TNEB has claimed the cost of coal, oil, lubricants, water charges,

station auxiliaries, etc. for all the generating stations owned by them.

9.4.3.2 The other cost like O & M, depreciation, Interest on loan, Return on

Equity, etc relating to the generating stations have been claimed

separately along with total expenses.

9.4.3.3 The Commission has determined two part tariff to generating stations

in chapter 7. The total cost of generation as per the generation tariff is

taken as transfer price and compared with the fuel cost claimed by the

TNEB as below:

Table – 173 Fuel / generation cost approved by TNERC

(Rs.in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Fuel cost 4723.40 5998.30 6829.55

Cost of

generation

5998.81 7765.39 8717.10

9.4.3.4 The Commission has segregated all other expenditure in the ARR

(except power purchase and fuel cost) function wise in chapter 6.

9.4.3.5 The expenses relating to generation and transmission are included in

the generation tariff and transmission charges respectively.

9.4.3.6 The various expenses allocated to distribution function are as below:

200

Table – 174 Various expenses allotted to distribution functions by TNERC

(Rs.in Crores)

Sl. No

Expenses 2010-11 2011-12 2012-13

1 O & M Charges 2923.40 3130.30 3356.02

2 Depreciation 349.16 392.77 433.52

3 Interest on Loan 1428.07 1324.72 1475.21

4 Other Debits 9.56 7.30 7.46

5 Return on equity 133.94 108.11 116.91

6 Total 4844.13 4963.2 5389.12

9.4.4 Income Tax: The TNEB has not made any claim for Income Tax in ARR,

as there no incidence for income tax liability.

9.4.5 Bad & Doubtful Debts: The TNEB is reported to be maintaining efficient

collection of 99.81% in 2008-09. The TNEB is maintaining accumulated

provision upto 2.5% of the sundry debtors at the end of the year towards

provision for doubtful dues. The provision in any year to maintain the level

at 2.5% is included in the other debits.

9.4.6 Provision for Insurance & Contingency Reserve: Regulation 30 of

TNERC Tariff Regulations 2005 specifies that the generating company

and licensee may adopt the practice of self insurance and a provision upto

0.50% of the capital cost shall be allowed by the Commission in their

revenue requirement.

9.4.7 Regulation 31 of TNERC Tariff Regulations specifies that the generating

and licensee shall provide and maintain a contingency reserve upto 0.50%

of the value of assets at the beginning of the year and the provision made

for the year will be allowed in their revenue requirement.

9.4.8 The TNEB has made a provision of 1% on the value of assets of

generating stations and included the provision in the administrative and

general expenses. No separate provision has been made for contingency

reserve. This has been admitted.

201

9.4.9 The comprehensive Revenue Requirement claimed TNEB is compared

with the revenue requirement admitted by the Commission for distribution

licensee.

Table – 174 Revenue requirement approved by TNERC.

(Rs.in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Power Purchase Cost

16527.84 15141.12 16440.10 16202.67 13835.73 11371.78

Transmission Charges

0 0 0 1785.84 1916.58 2062.09

Fuel cost / Cost of generation

4723.40 5998.30 6829.55 5998.81 7765.39 8717.10

O & M Expenses

3463.64 3602.19 3746.28 2923.40 3130.30 3356.02

Depreciation 1086.36 1189.81 1303.86 349.16 392.77 433.52 Interest on Loan

3464.99 4032.05 4571.18 1428.07 1324.72 1475.21

Other Debits 139.41 138.46 137.46 9.56 7.30 7.46 RoE 378.25 412.23 449.80 133.94 108.11 116.91 Demand Side Management

10.00 10.00 10.00

Total ARR 29783.89 30514.16 33478.23 28841.45 28490.90 27550.09

9.4.10 Regulation 80 (2) of the TNERC Tariff Regulations specifies the following

“(1) The aggregate annual revenue requirement of the licensee shall be arrived at

after deducting the following from the total expenses:

(i) Amount of other income including non tariff related charges as per regulation

68(2).

(ii) Income from surcharge and additional surcharge from open access consumers.

(iii) Wheeling charges recovered from the open access consumers

(iv) Authorised portion of Income from other business engaged by the licensees for

optimum utilisation of assets.

(v) Any revenue grant received from Government (other than subsidy)”

202

9.5 Other Income

9.5.1 The TNEB has projected the following as other income (Misc. Income)

Table – 175 Other income projected by TNEB (Rs in Crores)

S. No.

Particulars 2010-11 2011-12 2012-13

1 Interest on loans and advances to employees

6.71 7.05 7.40

2 Income from investments 1.01 1.06 1.11

3 Belated payment surcharge collected from consumers

21.29 22.36 23.47

4 Interest on Advance to Suppliers / Contractors

0.24 0.26 0.27

5 Interest from Banks 0.01 0.01 0.01

6 Income from Sale of tender forms, stores, Scraps, etc.

36.13 37.93 39.83

7 Rebate availed on Power Purchase Bills 259.66 270.04 280.84

8 Income from hiring vehicles to employees and other welfare activities

0.11 0.12 0.13

9 Miscellaneous Receipts 97.41 102.28 107.40

10 Total 422.57 441.11 460.46

9.5.2 The major components of other income are belated payment surcharge,

and rebate availed on power purchase. These incomes are exclusively for

distribution function.

9.5.3 After allocating the other income based on the actual during previous

years to generation and transmission, the balance has been allocated to

distribution.

9.5.4 The total other income projected by TNEB has been accepted by the

Commission and allocated to various functions as detailed below:

203

Table – 175 Total other income approved by TNERC

(Rs. In Crores)

Sl. No Details 2010-11 2011-12 2012-13

1 Generation 37.05 37.05 37.05

2 Transmission 5.00 5.50 6.00

3 Distribution 380.52 398.55 417.41

Total 422.57 441.11 460.46

9.6 Non-Tariff Income

9.6.1 The TNEB has projected the following as Non-tariff revenue in ARR as

below:

Table – 176 Projection of non-tariff revenue by TNEB

(Rs. In Crores)

Sl. No.

Particulars 2010-11 2011-12 2012-13

1 Meter Rent 17.80 18.97 20.21

2 Recovery of theft of power, etc.

34.94 41.92 50.31

3 Wheeling Charges 204.65 268.04 351.07

4 Other Miscellaneous Charges collected from consumers

354.36 407.52 468.65

Total 611.75 736.45 890.24

9.6.2 The wheeling charges include short-term open access charges. The short-

term open access charges for the control period has been projected

based on the actual 2009-10 and deducted from the annual transmission

charges and the balance has been allocated to distribution as detailed

below:

204

Table – 177 Allocation of STOA charges for the control period

(Rs in Crores)

Sl. No Details 2010-11 2011-12 2012-13

1 Transmission 97.26 99.20 101.19

2 Distribution 514.49 637.25 789.05

3 Total 611.75 736.45 890.24

9.7 Net Aggregate Revenue Requirement

9.7.1 The net aggregate revenue requirement is arrived at as below:

Table – 178 Net ARR approved by TNERC (Rs in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Total ARR 29783.89 30514.16 33478.23 28841.45 28490.90 27550.09

Less: Other

Income

422.57 441.10 460.46 380.52 398.55 417.41

Less: Non-

Tariff

Revenue

611.75 736.45 890.24 514.49 637.25 789.05

Net ARR 28749.57 29336.61 32127.53 27946.44 27455.10 26343.63

9.8 REVENUE RECEIPTS

9.8.1 In the ARR the TNEB has not furnished slab wise consumption.

9.8.2 The Commission in letter dated 22-01-2010 and 19-02-2010 directed the

TNEB to furnish slab wise consumption for all categories of consumer

wherever different tariff is prevalent for different slabs.

9.8.3 The TNEB in letter dated 23-02-2010 furnished slab-wise consumption for

domestic consumers for the control period based on the percentage in

each slab out of the total consumption for the year 2008-09. As the TNEB

proposed separate tariff for the bi-monthly consumption slabs of 201-400

and 401-600, the proposed consumption in these slabs for the control

period were called for. The TNEB in the letter dated 23-04-2010 furnished

bi-monthly consumption in these slabs.

205

9.8.4 The consumption and revenue with existing tariff is computed as below :

Table – 179 Consumption and revenue with the existing tariff

2010-11 2011-12 2012-13

Category consumption

Net Revenue

consumption

Net Revenue

consumption

Net Revenue

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

I HIGH TENSION

Industries including railway traction

15959 7128.82 17292 7724.27 18739 8370.64

Railway Traction 96 42.88 100 44.67 102 45.56

Government and aided educational institution

260 111.95 275 118.41 294 126.59

Cinema Theatre & Studios and Private educational institutions

774 333.27 827 356.09 881 379.34

Places of Pub. Worship 4 1.32 4 1.32 4 1.32

Commercial 1744 1082.80 1901 1180.28 2072 1286.45

Lift Irrigation 9 0.45 9 0.45 9 0.45

Supply to Pondicherry

Supply to other states

Total HT 18846 8701.50 20408 9425 22101 10210

II LOW TENSION (Lakhs)

Domestic 16282.00

3828.40 17065 4013.27 17886 4208.08

Huts 411 15.70 428 16.41 447 17.15

Bulk Supply 4 1.40 5 1.75 6 2.10

Public Lighting 1581 541.49 1625 556.56 1669 571.63

Government and aided educational institution

245 109.48 231 103.40 208 93.27

Cinema Theatre & Studios and Private educational institutions

141 62.91 185 82.31 242 107.39

Places of Pub. Worship 98.00 31.02 104 32.91 110 34.82

Cottage and Tiny Industries

117.00 30.58 122 31.85 128 33.30

Power Loom 855.00 174.33 889 181.08 924 189.19

Industries 4089.00 1902.83 4242 1973.56 4401 2047.61

Agriculture 11206.00

266.55 11436 272.02 11666 277.49

Commercial 4555 2711.09 4874 2899.03 5215 3099.85

Temporary Supply 19 13.30 33 23.10 56 39.20

206

Total LT 39603.00

9689.08 41239.00

10187.25 42958.00 10721.08

Total HT and LT 58449 18390.58 61647 19612.74 65059.00 20931.43

9.8.5 The revenue at the existing tariff projected by TNEB is compared with the

revenue projected by the Commission as below:

Table – 180 Revenue at the existing tariff projected by TNERC

2010-11 2011-12 2012-13

consumption Net Revenue

consumption Net Revenue

consumption Net Revenue

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

TNEB 60751 19331.77 65610 20728.05 70817 22509.52

TNERC 58449 18390.58 61647 19612.74 65059 20931.43

9.9. Revenue Gap

9.9.1 The revenue gap is the difference in the revenue requirement and the

revenue with the existing tariffs, which is to be bridged by a revision in the

tariff. The Commission has computed the TNEB’s revenue gap for the

years 2010-11,2011-12 and 2012-13 as below:

Table – 181 Revenue gap computed by TNERC (Rs in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Revenue required from sale of electricity

28749.57 29336.61 32127.53 27946.44 27455.10 26343.63

Revenue with existing tariff

19331.77 20728.05 22509.52 18390.58 19612.74 20931.43

Revenue Gap 9417.80 8608.56 9618.01 9555.86 7842.36 5412.20

9.10 Approach to Tariff Rates

9.10.1 The Commission has accepted the revised tariff rates proposed by the

TNEB except the following

(1) Railway Traction

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(a) The Southern Railway made the following submission before the

Commission

(i) The recorded maximum demand in the traction substations varies

depending on the number of trains running in the feeding zone. The

traffic pattern is not constant due to goods trains, seasonal trains

and bunching of trains due to force majeure conditions.

(ii) Due to varying nature of loads which is not practicable to control

the recorded demand within the band of 90% to 100% of contracted

maximum demand.

(iii) The trains while on the run from the originating station to the

destination runs through the feeding zones of several contiguous

traction sub-stations registering ‘demand’ at every feeding point;

but the load on the grid remains fairly constant. Thus the same train

registers demand at multiple points causing payment of demand

charges at multiple points for the same train.

(b) The Commission may consider the following:

(i) Simultaneous maximum demand of contiguous traction sub-

stations connected to the same grid may be adopted for billing

purpose: ‘or

(ii) The demand charges may be reduced by 33%: or

(iii) A single part tariff with energy charges (without demand charges)

not exceeding the average rate of realization from EHT industrial

consumer (in two part tariff).

9.10.2 The Commission Considered the submission and decided the following:

(1) The single part tariff cannot be granted for the Railway traction service

as the services are having specific contract demand.

(2) The simultaneous demand recorded in the several contiguous traction

sub-stations (service connection point) cannot be assigned to a single

point for the purpose of billing.

(3) The demand charges for the Railway Traction is revised and fixed at

Rs.250 perkVA per month.

208

(4) Railway’s demand to classify the Railway Level Crossing along with

the tariff applicable for Public Lighting is accepted.

9.10.3 LT Tariff IC (Bulk Supply)

9.10.3.1 The TNEB has proposed to revise the tariff from Rs.3.50 per unit to

Rs.5.00 per unit.

9.10.3.2 This tariff is applicable to LT bulk supply for railway colonies, plantation

worker colonies, defence colonies, Police Quarters and other notified

categories as decided by the Commission from time to time.

9.10.3.3 The industrial units drawing power at HT supply are extending the supply

to the quarters and paying at rate applicable for LT I C. Hence the rate is

fixed at the rate corresponding to the charges applicable to HT industries

i,e Rs.4.00 per unit.

9.10.4 IT Industries

9.10.4.1 The TNEB in their letter dated 12-4-2010 have informed the

Commission as follows:

“Government of Tamil Nadu was addressed for the provision of tariff subsidy to charge Basic Service providers and IT Enabled service under Industrial tariff. Since the chance of getting subsidy from Government of Tamil Nadu for this category appear to be meagre, these services may be charged under Industrial Tariff as per IT policy of Government. The revenue impact has been furnished separately. 2.0. In this connection, it is to be stated that as per Information Communication Technology (ICT) Policy of Tamil Nadu 2008 (copy enclosed for ready reference), under para (5), the following definition of terminologies are used: 3.0. IT – ITES Companies will include IT Service (ITS), IT Enabled Services (ITES), Private Communication Providers (PCPS), software Industries, IT maintenance and servicing units and hardware units as covered in IT Policy 1997. a) IT Services are broadly defined as systems integrations, processing

services, information services outsourcing, packaged software support and installation, hardware support and installation.

209

b) IT enabled services are human intensive services that are delivered over telecom networks or the internet to the range of business segments which will include

- Medical Transcription - Legal Database processing - Digital content development / animation - Remote maintenance - Back office operation – Accounts / Financial service - Data processing - Call centers - Engineering and Design - Geographic Information service – Human Resource Services - Insurance claim processing - Payroll Processing - Revenue Accounting - Support Centers - Website Services - Business Process Outsourcing (BPOs)

c) Private Communication providers include Class A, Class B and Class C – Internet Service Providers, Right of way Memorandum of Understanding (MOU) holders, Basic Service Providers and value added service providers like the Common Service Centres operators in the State

4.0 In the same policy under para 9.5 (Power Tariff), the Government of Tamil Nadu has stated as follows:

Tamil Nadu Electricity Board will provide power supply for Low tension units as

per LT Tariff III C and for High tension units as per HT Tariff I – A to Information

Technology Industries whether set up in IT-ITES Parks or in stand-alone

locations and also ensure quality of power as required by the industry. Hence for

the purpose of power tariff, IT (as defined above), maintenance and servicing

units and hardware units will be treated as Industrial and not commercial

consumers and electricity tariff as applicable to industry consumers will be

charged.

5.0 Further, Information and Communication Technology (ICT) has been a

major growth driver for the Indian economy in the last few years and has

significant potential for growth in the coming years. Tamil Nadu has been

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amongst the top three states in terms of ICT investments and production. It has

been emerged as a hub for software, hardware and R&D. IT-ITES forms an

integral part of ICT with tremendous potential for employment not only in Tamil

Nadu but abroad also which will, in turn, fetch more revenue to our state.

6.0 Considering the above facts, it is requested that IT-ITES companies as

defined in Para 5, 5 (a), 5(b) and 5 (c), maintenance and servicing units and

hardware units as per Section 9.5 of ICT Policy 2008 may be treated as Industrial

and not Commercial consumers.

7.0 Further, it has been noticed that some of the IT companies have also

permitted or authorised on outsourcing basis certain commercial organisations to

run certain services such as catering services, ATM counters, Bank branches,

Departmental Stores, Fast food outlets, Mobile phone stores, Book stalls, etc.,

inside their premises. These activities are not directly related to IT activities even

though may be for captive usage and which are essentially commercially in

nature, are being supplied with power for HT supply, which is provided

exclusively for “Industrial activities”.

8.0 In view of the above, the following are placed before Hon’ble Commission for

consideration.

Facilities like canteen, ATM, Gym, Bank, etc. created in the campus are meant

predominantly for the use of the employees may be billed under the category of

IT tariff. However if the facilities are mainly for the use of general public

commercial tariff may be charged.

9.0 Considering the above facts, it is requested that IT-ITES companies as

defined in para 5, 5(a), 5(b) and 5(c), maintenance and servicing units and

hardware units as per Section 9.5 of ICT Policy 2008 may be treated as

‘Industrial’. However, if the facilities narrated above are mainly for the use of

general public, commercial tariff may be charged. Accordingly, appropriate order

may kindly be passed and the same may be communicated.”

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9.10.4.2 The sum and substance of their letter is that IT-ITES Companies,

maintenance and servicing units and hardware units as contained in the

Information and Communication Technology Policy 2008 of the

Government of Tamil Nadu may be treated as Industrial and not

Commercial consumers.

9.10.4.3 The Commission held a meeting on 29-6-2010 with the Secretaries of

Finance, Energy and Information and Technology Departments and the

Chairman of the Tamil Nadu Electricity Board, wherein this subject

figured. The Commission wanted to know from the Government whether

the power tariff announced in the ICT Policy 2008 of the Government of

Tamil Nadu could be given effect to in the tariff order. The Secretaries to

Government informed the Commission that a view would be taken by the

Government and communicated to the Commission shortly.

9.10.4.4 The Secretary, Energy Department has informed the Tamil Nadu

Electricity Board in his letter dated 20-7-2010 as follows:-

“The Government at the current juncture proposes to maintain the status quo and continue with the existing tariff classifications for Information Technology Services / Information Technology Enabled Services and private communication providers. TNERC may be informed accordingly.”

9.10.4.5 The Chairman, TNEB in his letter dated 22-7-2010 has informed the

Commission as follows:-

“In continuation to the letter cited under reference, the following are submitted”- 2.0 The Government at this current juncture proposes to maintain the status quo ante and continue with the existing tariff classifications for Information Technology Services, Information Technology Enabled

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Services and private communication providers. A copy of the letter received from Government is enclosed for ready reference. 3.0 Under the above circumstances it is submitted that tariff for HT and LT of Information Technology Services alone may kindly be continued in HT Tariff IA / LT Tariff III B respectively and HT and LT services of IT Enabled services / private communication providers may kindly be continued in HT Tariff III / LT Tariff V respectively as at present. 4.0 TNEB shall also request for most urgent orders on its tariff revision proposal presently under consideration by the Hon’ble TNERC.

9.10.4.6 The latest proposal of the TNEB is that HT and LT service connections

of Information Technology Services may be granted HT Tariff I A / LT

Tariff III B and HT / LT services of IT Enabled Services / private

communication providers may be continued in HT Tariff III / LT Tariff V.

9.10.4.7 Therefore, the Commission decides to adopt HT Tariff I A / LT Tariff III B

for Information Technology Services as defined in the Information

Communication Policy (ICT Policy) 2008 of Government of Tamil Nadu.

The definition is reproduced below:

”IT services are broadly defined as systems integration, processing services, information services outsourcing, packaged software support and installation, hardware support and installation.”

9.10.4.8 HT / LT services of IT Enabled Services / private communication

providers will be charged under HT Tariff III / LT Tariff V.

9.10.5 Hospitals run by charitable trust which offers totally free treatment for all

categories of patients is treated on par with government hospitals and

classified under LT Tariff II B (1)

9.10.6 The crèches and recreation centers run by plantations for the benefit of

plantation workers are classified under LT Tariff II B (1)

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9.10.7 The TNEB has proposed to revise the tariff for cinema theatres, studios

from Rs.4.40 per unit to Rs.5.00 per unit and for private colleges from

Rs.4.40 per unit to Rs.6.00 per unit.

(1) There were objections for the proposal of charging higher tariff to

education institutions than the charges for cinema theaters and studios.

(2) The Commission has decided to bring both the consumer categories in

one tariff category and charge at Rs.5.50 per unit.

9.10.8 The activities of horticulture, mushroom culture, fish culture, are brought

under LT Tariff III A (1) where ever the connected load does not exceed 10

HP.

9.10.9 The braided cord manufacturing activities are brought under LT Tariff III A

(2) as the activities are similar to power looms and had been earlier

classified along with power loom.

9.10.10 Under LT Commercial category, a new slab of 0 to 50 units monthly

or 0 to 100 units bimonthly has been introduced with the tariff of Rs.4.30

per unit considering the demand of petty shop consumers.

9.11 TARIFF SCHEDULE

9.11.1 TARIFF FOR HIGH TENSION CONSUMERS

9.11.1.1 General Provisions Applicable for High Tension Supply:-

(1) Any High Tension Supply involving a sanctioned demand of 5000 kVA and

above shall be given supply at 33 KV and above.

(2) In the case of existing High Tension consumers whose sanctioned

demand exceeds 5000kVA and who do not avail themselves of supply at

the voltage indicated in item (1) they shall be charged an extra levy of 10

214

paise per KWH over and above the normal tariff for the entire energy

consumed. This extra levy is applicable to all categories of HT consumers

till they avail supply at the specified voltage.

(3) Low Power Factor Surcharge: In respect of High Tension service

connections the average power factor of the consumers installation shall

not be less than 0.90. Where the average power factor of High Tension

service connection is less than the stipulated limit of 0.90 the following

compensation charges will be levied.

Below 0.90 and up to 0.85 One per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.90

Below 0.85 to 0.75 One and half per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.90

Below 0.75 Two per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.90

(4) Billable Demand: In case of two part tariffs, maximum Demand Charges

for any month will be levied on thekVA demand actually recorded in that

month or 90% of the sanctioned demand which ever is higher.

Provided, that whenever the restriction and control measures are in force,

the billable demand in case of two part tariff for any month will be the

actual recorded maximum demand or 90% of demand quota, as fixed from

time to time through restriction and control measures, whichever is higher.

(5) In the case of supply under HT Tariff IA, IIA, and III, the use of electricity

for bonafide purpose of lighting, heating and power loads in the residential

quarters within the premises shall be metered separately by the

consumers taking HT supply and paid to the Board at LT Tariff IC. The

units shall be deducted from the total number of units registered in the

main meter of HT supply for billing purposes.

215

9.11.2 HIGH TENSION TARIFF I A:

Tariff Tariff category Demand

Charge in

Rs/KVA/

month

Energy charge in

Paise per

kWh(unit)

High Tension

Tariff I A 300 400

9.11.2.1 This tariff is applicable to all industrial establishments and Registered

factories which includes Tea Estates, Textiles, Fertilizers, Salem Steel

Plant, Heavy Water Plant, Chemical plant, common effluent treatment

plant, Cold storage units, Information Technology Services

Information Technology Services as defined in the Information

Communication Policy (ICT Policy) 2008 of Government of Tamil

Nadu. The definition is reproduced below:

”IT services are broadly defined as systems integration, processing

services, information services outsourcing, packaged software support

and installation, hardware support and installation.”

9.11.2.2 The HT Industrial consumers (HT IA) shall be billed at 20% extra on the

energy charges for the energy recorded during peak hours. The

duration of peak hours shall be 6.00 A.M to 9.00 A.M and 6.00 P.M to

9.00 P.M.

9.11.2.3 The HT Industrial Consumers (HT I A) shall be allowed a reduction of

5% on the energy charges for the consumption during 10.00 P.M to 5.00

A.M as an incentive for night consumption.

9.11.2.4 The consumption of electrical energy by the HT Industrial Consumers

under HT IA having Arc furnaces will be charged an additional energy

charge of 15% on the HT IA tariff.

216

9.11.2.5 High Tension Industries under Tariff I-A having arc, induction furnaces or

steel rolling process the integration period for arriving at the maximum

demand in a month will be fifteen minutes.

9.11.2.6 If the HT consumer under this category needs to extend LT supply within

their area of operation for any commercial purposes, they have to inform

TNEB suitably and meter such consumption separately and pay at the

appropriate LT Commercial Tariff.

9.11.3 HIGH TENSION TARIFF I B – RAILWAY TRACTION

Tariff Tariff category Demand Charge

in Rs/KVA/

month

Energy charge in Paise

per kWh(unit)

High Tension

Tariff I B 250 400

This tariff is applicable to railway traction.

9.11.4 HIGH TENSION TARIFF II-A

Tariff Tariff Category Demand Charge

in Rs/KVA/ month Energy charge in Paise per kWh(unit)

HT Tariff IIA

200 400

9.11.4.1 The tariff is applicable to Government and aided educational

institutions, Hostels run by such educational institutions, Government

Hospitals, Hospitals under the control of Panchayat Unions,

Municipalities or Corporations, Veterinary Hospitals, Leprosy Sub-

Centres, Primary Health Centres. Health Sub-Centres, Orphanages,

Public Libraries, Water works, Public Lighting, , Public Sewerage

217

Works by Government/local Bodies, Public Water Supply by New

Tirupur Area Development Corporation, Electric crematorium by local

bodies, Laboratories, Research institutions, , Ministry of defence and

Avadi CRPF establishment, Desalination plant at Kudankulam Nuclear

power plant.

9.11.4.2 If the HT consumer under this category needs to extend LT supply

within their area of operation for any commercial purposes, they shall

inform TNEB suitably and separately meter such consumption and pay

at the applicable LT Commercial tariff.

9.11.5 HIGH TENSION TARIFF II – B

Tariff Tariff

Category Demand Charge

in Rs/KVA/ month

Energy charge in

Paise per kWh(unit)

HT Tariff II

B 200 450

9.11.5.1 The tariff is applicable to Private educational institutions and hostels

run by them, Studios, Cinema Theatres.

9.11.5.2 If the HT consumer under this category needs to extend LT supply

within their area of operation for any commercial purposes, they shall

inform TNEB suitably and separately meter such consumption and pay

at the applicable LT Commercial tariff.

9.11.6 HIGH TENSION TARIFF II-C

Tariff Tariff Category Demand

Charge in Rs/KVA/ month

Energy charge in Paise per kWh(unit)

HT Tariff II-C

125 280

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9.11.6.1 This tariff is applicable to actual places of public worship, mutts, and

religious institutions ,

9.11.6.2 If the HT consumer under this category needs to extend LT supply within

their area of operation for any commercial purposes, they shall inform

TNEB suitably and separately meter such consumption and pay at the

applicable LT commercial tariff.

9.11.7 HIGH TENSION TARIFF III

Tariff Tariff Category Demand

Charge in Rs/KVA/ month

Energy charge in Paise per kWh(unit)

HT Tariff III 300 580

9.11.7.1 This tariff is applicable to all Commercial Establishments and other

categories of consumers not covered under High Tension Tariff IA, IB

IIA, IIB, IIC and IV.

9.11.7.2 IT Enabled Services / private communication providers will be charged

under this tariff

9.11.7.3 Industries requiring HT supply shall be charged under this tariff during

construction period.

9.11.8 HIGH TENSION TARIFF IV

Tariff

Category

Demand

Charge in

Rs/KVA/

month

Energy charge

in Paise per

kWh(unit)

HT Tariff IV Nil 50

219

This tariff is applicable to the Lift Irrigation Societies for Agriculture registered under

Co-operative Societies or under any other Act.

9.11.9 TARIFF FOR LOW TENSION CONSUMERS

9.11.10 LOW TENSION TARIFF I-A:

Tariff Consumption slabs – Range in kWh(units) and billing period (one or two months)

Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff I-A

From 0 to 25 units per month (or) 0 to 50 units for two months

110

From 26 to 50 units per month / 51 to 100 units for two months

130

From 51 to 100 units per month / 101 to 200 units for two months

260 5

From 101 to 300 units per month / 201 to 600 units for two months

350 5

From 301 units and above per month / 601 units and above for two months

575 5

20

This tariff is applicable generally for domestic purposes of lights and fans

including radio/TV and other home appliances. The tariff is also applicable to the

following category of services

(1) Handlooms in residences of handloom weavers (regardless of the fact

whether outside labour is employed or not) and to handlooms in sheds

erected where energy is availed of only for lighting and fans.

(2) Public conveniences maintained and run by the local bodies and by such

other organisations

220

(3) Community Nutrition Centres and Block Offices of Tamil Nadu Integrated

Nutrition Projects.

(4) Anganwadi Centres, Nutritious Meal Centres and School Buildings

associated with the Government Welfare Schemes and Electric

crematorium by local bodies.

(5) Old Age Home, Leprosy Centre run by charitable institutions rendering

free service.

(6) Consulting Rooms of any professionals attached to the residences of

such professionals provided no trading is undertaken or no motive power

is used in the Consulting Room.

(7) All consumers under this category, shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked) Non compliance shall invite

compensation charges as per TNERC regulations.

9.11.11 LOW TENSION TARIFF I-B:

Tariff Description Energy

charges in

paise / kWHr

Fixed charges

(Rupees /

Month)

Monthly minimum (in Rupees)

Low

Tension

Tariff I-B

Till installation of Energy

Meter

Rs. 10 / Month

On Installation of Energy

Meter

50 Nil 10

This tariff is applicable to huts in Village Panchayats and special grade

panchayats, houses constructed under Jawahar Velai Vaiipu Thittam, TAHDCO

and Kamarajar Adi Dravidar housing schemes and huts in Nilgiris District.

This tariff is applicable subject to following conditions

221

(1) Hut means a living place not exceeding 250 square feet area with mud

wall and the thatched roof / tiles / asbestos / metal sheets like corrugated

G.I.sheets for roofing.

(2) Only one light not exceeding 40 watts shall be permitted per hut.

(3) Wherever, colour TV has been supplied by the Government to BPL

family, one light not exceeding 40 Watts and one 14" colour TV not

exceeding 70 Watts (Total 110 watts) shall be permitted per hut.

(4) Whenever the norms prescribed in (1) to (3) above are violated, the

service category shall be immediately brought under Low Tension Tariff

I-A and billed accordingly

9.11.12 LOW TENSION TARIFF I-C:

Tariff Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff I-C

400 Nil 50

(1) This tariff is applicable to the LT bulk supply for railway colonies,

plantation worker colonies, defence colonies, Police Quarters.

(2) All consumers under this category shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked). Non compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.

9.11.13 LOW TENSION TARIFF II-A:

Tariff Description Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff II-A

Village / Town Panchayat

340 Nil 50

Municipality / Corporation

350 Nil 50

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(1) This tariff is applicable to Public Lighting, Public Water Supply and

Public Sewerage System belonging to village/Town Panchayats

Township areas, Municipalities, Municipal Corporations, Railway level

crossing, TWAD Board, private agriculture wells hired by CMWSSB,

village/Town Panchayats Township areas, Municipalities, Municipal

Corporations and TWAD Board to draw water for public distribution,

Public Water Supply by New Tirupur Area Development Corporation

and separate service connection for streetlight in SIDCO and other

Industries Department.

(2) All consumers under this category shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked). Non-compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.

9.11.14 LOW TENSION TARIFF II-B (1)

Tariff Energy charges in paise / kWhr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff II-B (1)

480 20 50

(1) This tariff is applicable to Government and Government aided

Educational Institutions, Hostels run by such Educational Institutions,

Hostels run by Adi-Dravidar and Tribal Welfare, Backward Class

Welfare Department and other Government agencies, Government

Hospitals, Hospitals under the Control of the Panchayat Unions,

Municipalities and Corporations, Veterinary Hospitals, Leprosy Sub-

Centers, Primary Health Centers, Health Sub-Centers, Laboratories,

creches and recreation centers run by plantations, Research Institutes,

223

Orphanages, Public Libraries, Homes for Destitute and Old people,

Flood Lighting arrangements in the Rock Fort Temple, its environs and

the roads and pathways leading to temple at Tiruchillapalli, Emergency

accident Relief centers on highway, Rehabilitation centre for mentally

ill, Terminal cancer care centre giving free treatment. Hospitals run by

charitable trust which offers totally free treatment for all categories of

patients on par with government hospitals.

(2) All consumers under this category, shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked) Non compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.

9.11.15 LOW TENSION TARIFF II-B (2)

Tariff Energy

charges in

paise / kWHr

Fixed charges

(Rupees /

Month)

Monthly

minimum (in

Rupees)

Low

Tension

Tariff II-B

(2)

550 20 50

(1) This tariff is applicable to Studios, Cinema Theatres, Private

educational institutions

(2) All consumers under this category, shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked) Non compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.

224

9.11.16 LOW TENSION TARIFF II-C:

Tariff Energy

charges in

paise / kWHr

Fixed charges

(Rupees /

Month)

Monthly

minimum (in

Rupees)

Low Tension

Tariff II-C

300 10 50

(1) This tariff is applicable to actual places of public worship, religious mutts,

religious institution, Goshalas run by charitable trusts.

(2) All consumers under this category shall have ISI marked motor and motor

loads of 3 HP and more shall install adequate power factor improvement

capacitors (ISI marked). Non-compliance shall invite compensation

charges as per Tamil Nadu Electricity Regulatory Commission regulations.

9.11.17 LOW TENSION TARIFF III-A (1):

Tariff Consumption slabs –

Range in kWh(units) and

billing period (one or

two months)

Energy

charges in

paise / kWHr

Fixed charges

(Rupees /

Month)

Monthly

minimum (in

Rupees)

Low

Tension

Tariff III-

A (1)

From 0 to 250 units per

month ( or)

0 to 500 units for two

months

180

From 251 to 750 units per month ( or) 501 to 1500 units for two months

270

From 751 and above per month ( or) 1501 and above for two months

350

30

60

225

(1) This tariff is applicable to cottage and tiny industries, micro enterprises

engaged in the manufacture or production of goods pertaining to any

industries specified in the first schedule to Industries (Development and

Regulations) Act 1951 (Central Act 65 of 1951)..

(2) The intending consumers applying for service connection under LT Tariff

III A (1) claiming to have established the micro enterprise engaged in the

manufacture or production of goods (with connected load not exceeding

10 HP) shall produce the acknowledgement issued by the District

Industries Center under the Micro Small and Medium Enterprises

Development Act, 2006 ( Act 27 of 2006 ) as proof for having filed

Entrepreneurs Memorandum for setting up of Micro Enterprises for

manufacture or production of goods with District Industries Center under

whose jurisdiction the Enterprise is located.

(3) The existing consumers who are classified under LT Tariff III A (1) based

on the SSI / Tiny Industries Certificate may be continued to be charged

under the same tariff till next tariff revision.

(4) This tariff is also applicable to small gem cutting units, sericulture,

floriculture, Dairy units horticulture, mushroom culture, fish culture, where

the connected load does not exceed 10 HP

(5) Supply to welding sets has to be classified under Low Tension Tariff IIIB.

(6) All consumers under this category shall have ISI marked motor and motor

loads of 3 HP and more shall install adequate power factor improvement

capacitors (ISI marked). Non-compliance shall invite compensation

charges as per Tamil Nadu Electricity Regulatory Commission regulations.

226

9.11.18 LOW TENSION TARIFF III-A (2) :

Tariff Consumption slabs – Range in kWh(units) and billing period (one or two months)

Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff III-A (2)

From 0 to 250 units per month ( or) 0 to 500 units for two months

140

From 251 to 750 units per month ( or) 501 to 1500 units for two months

225

From 751 and above per month ( or) 1501 and above for two months

250

30

60

(1) The tariff is applicable to power looms, Braided Cords Manufacturers,

related ancillary tiny industries engaged in warping, twisting, and

winding.

(2) The connected load shall not exceed 10 HP under this category.

(3) All consumers under this category shall have ISI marked motor and

motor loads of 3 HP and more shall install adequate power factor

improvement capacitors (ISI marked). Non-compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.

9.11.19 LOW TENSION TARIFF III-B:

Tariff Consumption slabs – Range in kWh(units) and billing period (one or two months)

Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff III-B

From 0 to 750 units per month ( or) 0 to 1500 units for two months

400 30

From 751 and above per month ( or) 1501 and above for two months

500 30

40 / kw

227

(1) This tariff is applicable to all industries not covered under LT Tariff III A (1)

and III-A (2), Common effluent treatment plants, Dairy units, Coffee

grinding, Ice factory, body building units, saw mill, rice mills, flour Mills,

prawn farming, poultry farms, fish culture, battery charging units and

Information Technology Services

Information Technology Services as defined in the Information

Communication Policy (ICT Policy) 2008 of Government of Tamil Nadu.

The definition is reproduced below:

”IT services are broadly defined as systems integration, processing services, information services outsourcing, packaged software support and installation, hardware support and installation.”

(2) Supply to welding sets shall be charged 15% extra.

(3) All Services under this category with a connected load of 25 HP and

above should maintain a power factor of not less than 0.85. Where the

average power factor of Low Tension Service connection is less than the

stipulated limit of 0.85 the following compensation charges will be levied.

Below 0.85 and up to 0.75 One per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.85.

Below 0.75 One and half per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.85

9.11.20 LOW TENSION TARIFF IV:

Tariff Description Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff IV

Till installation of Energy Meter

Rs.250 per HP per Annum

On installation of Energy Meter

20 Nil 25

228

(1) This tariff is applicable to Agriculture and the Government Seed Farms,

pump sets of Tamil Nadu Agriculture university, pump sets of Research

centre of Tamil Nadu Forest department pump sets of Government

coconut nurseries and pump sets of Government coil seed farms

(2) This tariff is applicable irrespective of owner ship of land if the usage of

electricity is for agriculture and the usage is restricted to the owned/leased

area

(3) All the new services under this category shall have ISI marked motors and

power factor compensation capacitors to qualify for the supply. All the

existing services should be provided with power factor compensation

capacitors within one year. Non-compliance to provide the capacitors

shall invite compensation charges as per the Tamil Nadu Electricity

Regulatory Commission regulations.

(4) The services under this tariff shall be permitted to have lighting loads up to

50 watts per 1000 watts of power connected subject to a maximum of 150

watts inclusive of wattage of pilot lamps. Lighting the farm or the field

around the pump sets should be through energy saving compact

fluorescent lamps only. Extra lighting over and above the limit and for

uses other than lighting shall be through a separate service under LT

Tariff V only.

(5) Agriculturists shall be permitted to use the water pumped from the well

and stored in overhead tanks for bonafide domestic purposes in the

farmhouse. The farmhouse shall be in close proximity not exceeding 50

meters from the well.

(6) Sugar cane crushing motors and allied equipments shall be permitted to be

connected and operated only when the respective agricultural services are

provided with energy meters. When such services are not provided with

meters; the consumer shall immediately opt for the metering.

229

9.11.21 LOW TENSION TARIFF V:

Tariff Consumption slabs – Range in kWh(units) and billing period (one or two months)

Energy charges in paise / kWHr

Fixed charges (Rupees / Month)

Monthly minimum (in Rupees)

Low Tension Tariff V

From 0 to 50 units per

month ( or)

0 to 100 units for two

months

430 30

From 51 to 100 units per

month ( or)

101 to 200 units for two

months

530 30

From 101 and above per month ( or) 201 and above for two months

650 30

40

(1) This tariff is applicable to all Commercial establishments and consumers

not categorized under LT IA, IB, IC, IIA, IIB (1), II B (2), IIC, IIIA (I), III A

(2), IIIB, and IV.

(2) IT Enabled Services / private communication providers will be charged

under this tariff.

(3) All consumers under this category shall have ISI marked motor and motor

loads of 3 HP and more shall install adequate power factor improvement

capacitors (ISI marked). Non–compliance shall invite compensation

charges as per TNEB’s terms and conditions. The services having a

connected load of 25 HP and above shall be covered under the power

factor penalty system as in (5) below.

(4) “The tariff is also applicable for L.T. supply for construction activities of

residential building/complex till the completion of construction activities”.

(5) All Low Tension Services under this category and with a connected load of

25 HP and above should maintain a power factor of not less than 0.85.

230

Where the average power factor of Low Tension Service connection is

less than the stipulated limit of 0.85 the following compensation charges

will be levied.

Below 0.85 and up to 0.75 One per cent of the current consumption charges for every reduction of 0.01 in power factor from factor from 0.85.

Below 0.75 One and half per cent of the current consumption charges for every reduction of 0.01 in power factor from 0.85

9.11.22 LOW TENSION TARIFF VI:

Tariff Description Energy charges in paise / kWHr

Minimum (in Rupees)

Low Tension Tariff VI

Supply to temporary activities and construction activities other than Residential building/Residential Complexes for combined lighting and Power load.

1050

Lavish illumination 1050

50 per kW or part thereof per day

(i) The LT tariff VI is applicable for the requirements of a temporary

supply during the construction stage. The temporary supply shall be

converted into the respective regular category after the completion and

compliance to the respective terms and conditions.

(ii) This Tariff is also applicable for lavish illumination to weddings, garden

parties and other private functions where the illumination is obtained

through bulbs fastened in outer surfaces of walls of buildings on trees

and poles inside the compound and in pandals, etc., outside the main

building. All other cases of illumination, obtained through bulbs

231

intended on outer surface of walls of buildings on trees and poles

inside the compound and in pandals etc., outside the main building

shall be charged as for Temporary Supply.

9.11.23 GENERAL CONDITIONS

(1) The above tariff shall be read with the General Terms and Conditions of

Supply Code and Distribution code specified by the Tamil Nadu Electricity

Regulatory Commission.

(2) The present tariff order does not alter the previous specific orders of the

Commission on categorization of certain consumers.

9.12 Revenue At New Tariff

The Commission has computed the revenue with new tariff rate as below:

Table – 182 Revenue at New Tariff

2010-11 2011-12 2012-13

Category consumption

Net Revenue

consumption

Net Revenue

consumption

Net Revenue

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

(in MU) (Rs in Crores)

I HIGH TENSION

Industries including railway traction

15959 7926.77 17292 8588.87 18739 9307.59

Railway Traction 96 46.14 100 48.06 102 49.02

Government and aided educational institution

260 120.76 275 127.73 294 136.55

Cinema Theatre & Studios and Private educational institutions

774 410.67 827 438.79 881 467.44

Places of Pub. Worship 4 1.32 4 1.32 4 1.32

Commercial 1744 1222.32 1901 1332.36 2072 1452.21

Lift Irrigation 9 0.45 9 0.45 9 0.45

Total HT 18846 9728.43 20408 10538 22101 11414.58

II LOW TENSION

Domestic 16282.00 3942.50 17065.00 4132.73 17886.00 4333.46

Huts 411.00 15.70 428.00 16.41 447.00 17.15

Bulk Supply 4.00 1.60 5.00 2.50 6.00 3.00

Public Lighting 1581.00 541.49 1625.00 556.56 1669.00 571.63

Government and aided educational institution

245.00 119.28 231.00 112.64 208.00 101.59

232

Cinema Theatre & Studios and Private educational institutions

141.00 78.42 185.00 102.66 242.00 134.01

Places of Pub. Worship 98.00 31.02 104.00 32.91 110.00 34.82

Cottage and Tiny Industries

117.00 31.70 122.00 33.01 128.00 34.50

Power Loom 855.00 174.33 889.00 181.08 924.00 189.19

Industries 4089.00 2012.01 4242.00 2086.82 4401.00 2165.12

Agriculture 11206.00 266.55 11436.00 272.02 11666.00 277.49

Commercial 4555.00 3078.06 4874.00 3291.29 5215.00 3519.11

Temporary Supply 19.00 19.95 33.00 34.65 56.00 58.80

0 0 0

Total LT 39603.00 10312.61 41239.00 10855.28 42958.00 11439.87

Total HT and LT 58449 20041.04 61647 21392.86 65059.00 22854.45

9.13 The Additional revenue due to increase in tariff is as below:

Table – 183 Additional revenue due to increase in tariff

(Rs in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Revenue with new tariff

21259.96 22841.38 24717.36 20041.04 21392.86 22854.45

Revenue with existing tariff

19331.77 20728.05 22509.52 18390.58 19612.74 20931.43

Increase in Revenue

1928.19 2113.33 2207.84 1650.46 1780.12 1923.02

9.14 Revenue Gap with new Tariff

The shortfall in revenue after tariff revision is as below:

Table – 184 Revenue gap with new tariff

(Rs in Crores)

TNEB TNERC

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

Revenue required from sale of electricity

28749.57 29336.61 32127.53 27946.44 27455.10 26343.63

Revenue with new tariff

21259.96 22841.38 24717.36 20041.04 21392.86 22854.45

Revenue Gap 7489.61 6495.23 7410.17 7905.04 6062.24 3489.18

233

9.15 Treatment of uncovered Gap

9.15.1 THE BOARD HAS PRAYED THAT THE UNCOVERED REVENUE GAP AS ON 31ST

MARCH 2010 BE TREATED AS ‘REGULATORY ASSETS’ AND CARRIED OVER TO

BE RECOVERED THROUGH FUTURE TARIFFS.

9.15.2 IN PARA 3.1 (TREATMENT OF REVENUE SHORTFALL) OF THE PETITION THE

BOARD HAS SUBMITTED THE FOLLOWING WITH REGARD TO TREATMENT OF

CUMULATIVE REGULATORY ASSET OF RS.16774.47 CRORES:

“The existing tariff revision procedure does not allow the recovery of

shortfalls either automatically by the Board or through a mid-year tariff

revision by the Commission. Thus the entire revenue loss incurred during the

financial year has to be borne by the Board. Non-recovery of such shortfall

will give rise to stranded cost and the Board will continue to carry it in its

Balance Sheet.

Also since the recovery of the entire shortfall in one financial year (say in

FY2010 -11) would put heavy burden on consumers, the Board does not wish

to burden the consumers with such a huge increase in tariffs, so as to recover

this entire shortfall in one go. The Board's intention is to minimize the rate

shock to consumers and to maintain a smooth tariff trajectory to recover the

costs.

It is thus proposed to treat the above-explained accumulated shortfall as a

special class of assets namely “Regulatory Assets” for the future years. The

said asset is of the nature of a “deferred expenditure” and will be charged as

expenditure while formulating the Annual Revenue Requirement in the future

years.

It is proposed to recover these short falls through equal installments in future

years”

234

9.15.3 THE BOARD HAS CITED THE PRECEDENTS OF SUCH TREATMENT IN ORISSA

ERC, HARYANA ERC AND ANDHRA PRADESH ERC.

(1) The case of Orissa relates to treatment the difference in revenue due to

different basis of calculation of T & D losses adopted by the GRIDCO

(41%) and the OERC (35%).

(2) In the case of Haryana, the difference was due to application of revised

tariff only for three months in an year.

(3) In Andhra Pradesh, the Commission has accepted the proposal to carry

forward the portion of financial losses which was on account of factors

beyond the control of the licensee.

(4) The reason for non recovery of accumulated losses in TNEB cannot be

attributed to the factors beyond the reasonable control of the licensee or

any other factors considered by other Commissions.

(5) Para 8.2.1 (5) of Tariff Policy prescribes the following:

“ Pass through of past losses or profits should be allowed to the extent caused

by uncontrollable factors. During the transition period controllable factors

should be to the account of utilities and consumers in proportions determined

under the MYT framework”

(6) Para 8.2.2 (a) of Tariff Policy prescribes the following:

“The circumstances should be clearly defined through regulations, and should

only include natural causes or force majeure conditions. Under business as

usual conditions, the opening balances of uncovered gap must be covered

through transition financing arrangement or capital restructuring”

(7) Regulation 13 of TNERC Tariff Regulation specifies the following:

a. “Wherever the licensee could not fully recover the reasonably incurred

cost at the tariff allowed with his best effort after achieving the benchmark

standards for the reasons beyond his control under natural calamities and

force majeure conditions and consequently there is a revenue shortfall and

if the Commission is satisfied with such conditions, the Commission shall

treat such revenue shortfall as Regulatory Asset/

235

b. The regulatory asset shall first be adjusted against the contingency

reserve. The balance regulatory asset, if any, will be allowed to be

recovered within a period of three years as decided by the Commission.

c. The licensee shall intimate the Commission then and there when such

contingency arises.

d. Any un recovered gap at the beginning must be covered through transition

financing arrangement or capital restructuring.”

(8) The above provisions were already brought to the notice of TNEB in

Commission’s letter dated 09-08-2006.

(9) TNEB has projected revenue gap for the years 2010-11, 2011-12 and

2012-13 in their tariff petition. The Commission has arrived at the gap for

these years as Rs.7905.04 crores, Rs.6062.24 crores and Rs.3489.18

crores respectively and this gap is after allowing a tariff increase of

Rs.1650.46 crores. It is to be noted here that the last tariff hike in Tamil

Nadu was in June 2003 and the TNEB has not preferred any tariff revision

thereafter, eventhough their operating costs have been going up. The

Commission had also advised them to file tariff revision petition but in

vain. There is an accumulated loss of about Rs.16500 crores up to 2008-

09. The estimated revenue gap for 2009-10 is not available. Had there

been regular tariff adjustments over the last 7 years the revenue shortfall

would not have grown to this extent. There has been no major capacity

addition by TNEB for the last 10 years. The Board has been buying

expensive power from the market which is a major reason for the gap,

besides increase in employee expenses consequent to the

implementation of the 6th Pay Commission Report for the TNEB

employees. The Commission observes that if the on going projects are

commissioned according to schedule, the revenue gap would start coming

down. The restructuring of the TNEB is expected to address the

accumulated loss of previous years. Since a huge gap exists even after

the proposed tariff hike, the Commission has no choice but to treat the

remaining portion as regulatory asset. The regulated asset would further

236

increase in the next two years as the trend of revenue gap continues.

This issue can be addressed only in the long term. To prevent the tariff

shock to the consumers, per force it to resort to creation of regulatory

asset as a last resort.

Sd/- Sd/-

(K.VENUGOPAL) (S.KABILAN)

MEMBER CHAIRMAN

237

Annexure I MEMBERS OF 19TH STATE ADVISORY COMMITTEE MEETING HELD ON

11-03-2010 1. Thiru. S. Kabilan, Chairman, TNERC.

2. Thiru. R. Rajupandi, Member, TNERC.

3. Thiru. K. Venugopal, Member, TNERC.

4. Thiru. R. Balasubramanian, Secretary, TNERC

5. Thiru. C.P. Singh, Chairman, TNEB

6. Dr. R. Christodas Gandhi, CMD, TEDA

7. Thiru V. Sethuraman, Director, NLC

8. Thiru. I. Srirama, Chief Electrical Engineer, Southern Railway

9. Thiru. S.V. Balasubramaniam, Member SAC

10. Thiru. D. Kumaravelu, Member SAC

11. Dr. M. Abdullah Khan, Member SAC

12. Thiru. DE. Ramakrishnan, Member SAC

13. Thiru S. Rathinasabapathy, Member SAC

14. Thiru K. Kasthurirangaian, Member SAC

15. Thiru. S. Rethinavelu, Member SAC

16. Thiru. G.S. Rajamani, Member SAC

17. Thiru. P, Gajapathi, Member SAC

18. Thiru. Alandur Bharathi, Member SAC

19. Thiru. N.L. Rajah, Member SAC

Special Invitees :

Thiru. P.W.C. Davidar, Secretary to Government, Energy Dept., Government of

Tamil Nadu.

Thiru. Praveen Kumar, Secretary (Expenditure), Finance Department,

Government of Tamil Nadu.

238

Annexure II

LIST OF STAKEHOLDERS WHO HAVE SUBMITTED WRITTEN SUGGESTIONS AND OBJECTIONS

SL NO

NAME & ADDRESS

1 The President, All District Ice Producers Welfare Association, 1/118, Paalathadi-Keechakuppam, Nagapattinam 609001

2 Thiru K Alagirinathan Siru Visaithari Thuni Urpathiyalarcal Pathukappu Sangam, Kamaraja Nagar Colony, Salem 636014

3 Thiru K Gopalakrishnan Hon Gen Secretary, Tamilnadu Small & Tiny Industries Association, No 10, gist. Road, Guindy, Chennai – 600032

4 Proprietor, Sree Mookambika Steam Laundry, No 1&2, Keerai Thottam, Street No 7, Kempetty Colony, Coimbatore – 641001

5 Thiru M Pandeeswari General Secretary, Madurai District Public Welfare Rights Association & Consumer Protection Council, No 60, Yanaikkal treat, Madurai 625001

6 Thiru V Nadanasabapathy Chairman, Creed Krishi Vigyan Kendra, Cholamadevi Udayarpalayam Taluk, Ariyalur district, Tamil Nadu

7 Thiru K Muthiah Executive Trustee, Consortium for consumer justice, 46 -A, P.G Mansion, Maninagaram Main Road, Madurai 625001

8 Dr G Rajaram, Chairman & Chief Functionary, Federation of consumer organizations- Tamilnadu & Pondicherry (FEDCOT).

9 Thiru N Narayana Reddy, President, District Small Farmer’s Welfare Association, Beegisettipalli(Vill), P.C.Puram (P.O), Hosur (Tk), Krishnagiri (Dt), Tamilnadu

10 Thiru. U. Subramanian, No.28, North Mada Complex, Vedaranyam, Nagapattinam District.

11 Thiru R Ganesan, Plot No 12, Mohanapuri 1

st street, Adambakkam,

Chennai – 600088

12 Thiru T.N.Arulanandhan, General Secretary, The World Community Service Centre ( WCSC) , 26, Second Seaward Street, Valmiki Nagar, Thiruvanmiyur, Chennai – 600041

239

13 Thiru M.P. Purushothaman, President , South India Hotels & Restaurants Association, M 1, Prince Centre, 709-710, Anna Salai, Chennai 600006

14 Thiru V Krishnamoorthy ( Retd-Revenue dept), No 9/14, Venus Street, “ Sastha Vihar”, Iyyappa Nagar, Trichy 620021

15 Thiru V Gopalakrishna, Plot No 301, D.No 27, Anna Street, Senthilnagar, S.M. Nagar Post, Chennai 600062

16 Thiru. S. Muthukrishnan, 37/3, Vaithi North Street, Seranmahadevi, Nellai 627 414.

17 Thiru. A. A. Normohammad, 7 Jalia Street, Kuthanallur 614 101 Thiruvarur District

18 Thiru. N. Natesan, 11C, Kamarajar Salai, Karaikudi

19 Thiru. S. Durairaj, Sri Radhakrishnan Ricemill, Athur Main Road, Gangavalli Post & Ward Salem District 636 105.

20 Thiru N.S.Venkatesan ( IRSSE- Retd), 76, 5th Cross Street, Mahalakshmi Nagar,

Adambakkam, Chennai 600088

21 Thiru. P. Johnson Paul Daniel, 1/78, Thenthamaraikulam Post, Kanyakumari District

22 Thiru. R. Kaliamoorthy, Consumers Protection and General Welfare Association, 35/28, Melaveedi, Thirupanathal - 612 504

23 Thiru K R B Nair ( Retd Kerala E.B Employee), Pournami, Valvachagestam, P.O Kattathurai 629158, Kanyakumari District

24 Thiru. P. Sivalingam, 394, Shanmugapuram proper Street, Tuticorin -2.

25 Thiru D.P. Suresh Kumar, General Secretary, Janata Party, Namakkal district, 82, Main Road, Namakkal 637001

26 Thiru Ariua Janakiraman, 4, Nehru Colony, B.A. Road Extension, Kumbakonam City, 612001, Tamil Nadu

27 Thiru. L.C. Srinivasan, No.415, 1

st Main Road, TNHB Quarters, Valajapettai ,

Vellore 632 513.

28 Thiru G Muniasamy, General Secretary, Madurai Consumer Protection Centre, 48/6, West Ponnagaram, 4

th Street, Madurai 625016

29 Karu. Palanivel, President, Parents Teachers Association, Thittacherry, Harichandrapuram ,Vadamathimangalam Post.

240

30 Thiru. Moovalur kavi Ravithilagan, 18/15, North Ramalinga Street, Mayiladurai

31 Thiru. N. Subash Chandrabose,/.President, All India Building & amaippu sara Thozhilalargal Mathya Sangam, 705, TAJ, Karaikal Main Road, K. Pudur 612 205 .

32 Salem Mandala Kumaran Visaithari Pothu Thozhilalrgal Sagam, 1/126, Thangasalai, Vennandur 637505, Namakkal district

33 Thiru S Sampath, Secretary, Bhelsia E mail : bhelsia@yahoo.com

34 Thiru. V. Kaliappan S/o Venkatasala Goundar, Ganapathipalayam South, Karur 639 005.

35 P. Muthukrishnan, Secretary, The Chennai Metropolitan House /Flat Owner’s Welfare Association No.88-A, MIG Flat, P.T. Rajan Salai, K.K. Nagar, Chennai 78

36 The Secretary, Arimalam Union Consumer’s Corps, No.4, Pasumadathar Veethi, Arimalam

37 Thiru. C. Rajendran, Consumers Rights Protection Council, No.6, Tamukum shopping Complex, Tallakulam ,Madurai

38 Thiru. A. Krishnaiah, S/o A. Venkataramaiah, 3rd ward Member & 25, Veppampattu Panchayat, D.No.539, Sunder Babu Nagar,

89, Veppampattu 602 024. Tiruvallur Dt

39 T. Gnanasekaran, 19-11, A/5, kaveri nagar, Mettur Dam 1.

40 Thiru. S. Sureshkumar, PRO, Tamil Media & Journalist Welfare Association, No.9, Kakkanji Nagar, ICF, Chennai 38

41 The Secretary, Tirunelveli District Chamber of Commerce & Industry, No.17, Arunagiri Complex, 25-B/1, S.N. High Road, Tirunelveli -1.

42 Thiru. Prof. S. Sethuraman, Sastra University , Thanjavur 613 402. Tamil Nadu .

43 Thiru. K. Balasubramanian, Puliangudi Regional Small powerlooms owners association, Senkunthar Valibar Sanga Building, Sundara Vinayagar Koil Street, T.N. Pudukkudi, Puliangudi 627 855.

44 Thiru. S.V. Swaminathan, 152, Akkasari Vinayakar Koil Street, Tirunelveli Town 627 0076

241

45 Thiru. Venugopal, President, Makavi Bharathi Nagar Development House Owner’s Welfare Association, 12

th

Centre Cross Street, Makkavi Bharathi nagar, Chennai 39

46 Thiru. Mylsami, President, Erode District Small Industries Association, No.5/1, SIDCO Industries Estate, Chennamalai Rd, Erode 638 001.

47 Thiru. K. Muthusami, S/o P. Kailasam (Late), 23 V.P. Koil Street, Pitchanoor, Gudiyatham, Vellore Dist.

48 Thiru. V.K. Subramania Raja, Managing Director, Geetha Krishna Spinning Mills Pvt. Ltd., PB No.76, Madurai Rd, Rajapalayam 626 117.

49 Thiru. K. Manokaran, 4/1, Ashtapuzam Road, Choolai, Chennai 112.

50 Thiru. S. Deivanayagam, Nehru Nagar Kudisai Abhiviruthi Sangam, No.12, Nedunchezhiyan Street, Nehru Nagar, Chennai 32.

51 M/s Sri Karunambika Powerlooms Owners Association, No.7/29K, Madathukupalayam Road, Avinasi 641 654. Coimbatore District

52 Thiru K. Manivasagan, S/o Kandasamy, 3rd Ward Street Lane, Ongini Post,

Senthurai Division, Ariyaloor Dist.

53 Sri Vinayaka Coolies weaving Owners Association, Pudupalayam – 641 654.

54 The Weaver Owners Associaton, Tehkkalur, Avanasi Division, Coimbatore Dist.

55 Thiru. V. Soundararajan, Thirunagesgaram.

56 Sri Karunambigai Weavers Owners Association, 7/29K, Madathupalayam Road, Avinasi 641 654, Coimbatore Dist.

57 Thiru Sanjay Sharma, SE, Dir ( Ser), Chief Engineer Chennai Zone, Military Engineer Services, Island Grounds, Chennai 600009

58 Thiru. A. Srinivasamoorthy, 1/66, Kamaraj Nagar Road, Thalavaipuram 626 188, Virudu Nagar Dist.

242

59 Madurai Betel Nut Beedi Cigarette Merchants Association, 58-59, Manjanakkara Muthiah Pillai Street, Madurai 625001

60 The President, Coimbatore District Coolies Weaving owners Association Power House Road, Somanur 641 668, Coimbatore Dist

61 Thiru. S. Boominathan, S/o Swamynathan, 1/69, Keela Street, Chidambaranapuram, Thathuvacherry Post, Thiruvadaimaruthur Division.

62 Thiru. A. Gopalan, No.23, Valluvar Street, Uraiyur, Tiruchirapalli 620 003.

63 Thiru R Panneerselvam, General Secretary, Tamil Nadu Film Exhibitors Association, D.R.Maligai, No 2, Old No 16, Poes Road, III Street, Teynampet, Chennai 600018

64 Thiru K Venkatachalam, Chief Advisor, Tamilnadu Spinning Mills Association, D.No 24, 11

TH Cross Street, Thiruvalluvar Nagar, Spencer Compound,

Dindigul 624003

65 LEAD CLUB, Plot No M.I.G 1328, 2nd Main Road, TNHB, Velachery,

Chennai 600042

66 Thiru. S. Chandran, 47/106, 7th Block, Kannadasan Nagar, Chennai 118.

67 Thiru. S. Bhaskaran, No.45/33, Old Munship Court Street, Saidapet, Chennai 632 012.

68 Mallasamudram Small Powerloom Jawli Urpathiyalargal Samgam, Mallasamudram 637503, Tiruchengode Tk, Namakkal District

69 Thiru. T. Senkottuvel, NO.32, State Bank Road, Erode 638 001.

70 Thiru. V.L. Jayaprakash, S/o V. Loganathan, No.25, Valaiyalkara Street, Saidapet, Vellore 632 012.

71 Thiru. P. Anandhan, 12B, Bharathiyar Street, Ulaganathapuram, Thiruchirapalli 20.

72 Thiru. S. Pancharatnam, SAC Member, No.3/326(1), Ranganathan Street, Bank Colony, Pudunatham Road, Madurai 625 014.

73 Thiru. C.K. Subramanyam, 1/122, Eswaran Koil Street, Kathivadi Village, Mel Vidaram Post, Vellore District – 632 509.

243

74 Thiru. A.K. Ayyangar, Founder, Villupuram District Farmers Federation, Baadur ,Ulundurpettai Tk, Villupuram Dist

75 Thiru N.J. Nareis, 14, Rajiv Gandhi Street, Lakshmipuram, Chrompet, Chennai 600044

76 Thiru C.S.Krishnan, No 6, 4th Street ( E), Periyar Nagar, Vadavalli, Coimbatore

641041

77 Thiru S Mahalingam, 39/75 (55) West Street, Vishnupuram 609506, Thiruvarur District

78 Thiru. K.R. Shajahan, No.24, Pensioner’s Colony, Kesava Nagar, Khaja Nagar Post, Thiruchirapalli 620 023.

79 Thiru. K.G. Ganesan, District Secretary, 3/7=672, Gandhi Road, Ammaiyarkuppam 631` 301, Pallipattu Division, Tiruvallur District.

80 Federation of consumer & service organizations, No 5, 4th Street, Lakshmipuram,

Tiruchirappalli 620010 E Mail : fedservorg@yahoo.com

81 Raghul Spinning Mills, 3/191-A, Melapattam Karisalkulam 626110, Rajapalayam

82 Thiru A Gopalasamy, Member, State General Council, T.N.C.C., 9/8, Railway Station Road, Vaiyampatti O.O, Trichy District, Tamilnadu 621315

83 Thiru Dr V Balasubramanian, 79, II St. Thirumalai Colony, Madurai 625016

84 Thiru V Ramalingam, General Secretary, State Consumer Rights Protection of Federation, Muthuramalinga Thevar Street, Gandhi Nagar, Vathalagundu 624202, Dindigul District, Tamilnadu.

85 Thiru. K. Rangaraju, No.12, Bharathiyar Street, Ulaganathapuram, Trichirapalli - 20

86 Thiru N Narayana Reddy, President, District Small Farmners Welfare Association, Beefisettipalli ( Vill), P.C.Puram (P.O) Hosur ( Tk), Krishnagiri ( Dt), Tamilnadu

87 Thiru S.K.Ananthan, Vice President Operations, Patspin India Ltd, 2/85-B,

244

Udumalai Tirupur Road, Ponneri, Kottamangalam P.O, Udumalpet 642201

88 Dr. Thiru. A. Krishnamoorthy, (Retired Sr. Civil Surgeon), District Co-ordinator, Federation of Anti Corruption Teams – India , (FACT INDIA), Old No.16, New No.45, Mettu Street, Chinna puliampatti, Aruppukottai, 626 101. Virudhunagar Dist.

89 Thiru. M.R. Mothilal, Braided Cord Manufacturers & Merchants Association, No.2/3A, A.A. Road, Chairman Muthuramaiyar Road, Madurai 625 009.

90 The Director, K.P.R Mill Ltd, No 9, Gokul Buildings, 1st Floor, A.K.S Nagar,

Thadagam Road, Coimbatore 641001

91 VXL Ferros, P.B No 4412, S.F No 651/4, Pollachi Road, Coimbatore 641021

92 Thiru. N. Jeyabalan, -2/311-9, Sona Nagar, New Fairlanders, Salem 636 016.

93 Thiru. P. Appandairajan, Postal Pensioner, 22, Chinna Jain street, Goripalayam, Arani .

94 Thiru. A. Abdul Jabbar, (Retired Sub-registrar –co-operative societies ), No.5, Karthik Nagar, Pillaiyarpatti, Vallam 613 403.

95 Thiru. Machine N. Kumar, No.7, Hospital Road, opp. To Government Primary Health Centre, Mallasamuthiram Post 637 503, Thiruchengode Tk, Namakkal Dist.

96 Tmt R Gomarthy Nayagam & Tmty G Kanagasundari, 89/5, Boopala rayarpuram, Thoothukudi 1

97 Thiru. T. Moorthy, 69, School street, Velayudapuram, Aruppukottai 626 101, Virudhunagar.

98 Thiru Dr N V Girishkumar Indian Medical Association, Coimbatore Branch, 92, Syrian Church Road, Coimbatore 641001 Thiru Dr T.V.Kumar Indian Medical Association, Chennai, Poonamallee branch, 255, Trunk Road, Poonamallee, Chennai 600056 & 3364 representations

99 Thiru T Loganathan, Ex Member Fishing Harbour, 17/A, 18 A, Jeevarathinam Nagar, Adayar, Chennai 600020

100 Thiru Sanjay Sharma, SE, Dir ( Ser), Headquarters, Chief Engineer Chennai Zone,

245

Military Engineer Services, Island Grounds, Chennai 600009

101 Thiru Dr K Thangamuthu, M.S, Legal Chairman, PPLSSS, IMA, Tamilnadu, I.K.G.M Hospital, Coimabore Road, Pollachi

102 Thiru P.S.Nagarajan, G-1, J.V. Royale 5/7, Arangan Street, Vijayalakshmipuram, Ambattur, Chennai 600053

103 Thiru A.V.Ramaswamy, Chairman , Vanaprastha Trust & Dhyanaprastha Foundation , Kasturinaicken Palayam, Vadavalli, Coimbatore E Mail :krishangan@gmail.com

104 Thiru V Shunmugavelu, No 3, St No 8, Subbaraj Nagar, Bodinayakanur, 625513, Theni district E Mail : vshunmugavel@hotmail.com

105 Thiru P R Raajakoomaran, Plot No 931, LIG II, CMDA, Mathur, Chennai 600068

106 Thiru. V. Azhagarsamy, Door No.274, South Tank Road, Allinagaram, Theni Dist .

107 Human Rights Protection Council, No 5/23, Anna Sami Pillai Colony, Near A.S.T.C. Dubbo, Hosur, 635109, Sundarampally Post, Tirupattur Tk, Vellore Dt 635654

108 Thiru. Radhakrishnan, 1/1, Kadai Street, Vaimedu, Thasangu Post, Vedaranyam Division, Nagapattinam Dist.

109 Thiru. Sureshkumar, News correspondence, Tamil Nadu Federation of Merchants Association, Kumar illam, 27, Paramathi Road, Namakkal 637 002.

110 Thiru Dr N Mahendran, M.D, Secretary, Nursing Home Board Indian Medical Association, 92, Syrian Church Road, Coimbatore 641001

111 The Tamilnadu Foodgrains Merchants Association Ltd, 342, East Masi Street, Madurai 625001

112 Thiru. S. Sekar, Vadapalani, Chennai 26.

246

113 Thiru C Venkatesan, Secretary, Mahkavi Bharathi Nagar Development House Owners Welfare Association, A.P. No 927, 12

th Central Cross Road,

M.K.B Nagar, Chennai- 39

114 Thiru J Jebachandran, Secretary, Emerald Estates Owners Welfare Association, Plot No 24, Emerald Estates, Jothi Nagar, 4

th Street,

Chrompet, Chennai 600044

115 A to Z Helping Service Trust, No 83, White Bettal Street, Fort Post Office, Trichy 620008

116 Aghin Chemicals, 2/32, Singikulam, Nanguneri Taluk, Tirunelveli 627152

117 Thiru Anantharam, E Mail : ananthap.ram@gmail.com

118 The Secretary, St. Valanar Trust, St. Valan Kalamandram, Saral & Post, 629 203, Kanyakumari Dist.

119 Indian Medical Centre, 283, T.T.K Road, Chennai 18

120 The President, All District Ice Producers Welfare Association, 1/118, Paalathadi- Keechankuppam, Nagapattinam 609001

121 Thiru K Rajagopalan & Thiru A K Muthuraman, 170, A Block, Dev Apartments, 6

th Cross Street, AGS Colony, Velachery, Chennai

42

122 Thiru J Sridhar, Plot No 25, Door No 6, Vth Main Road, Vijaya Nagar, Velacheri, Chennai 600042

123 S. Pathima Rajarathinam, Tamil Nadu Farmers Sangam, 5/166, St. Soosaiyar Street, Panchampatti, Dindigul Dist. TN – 624 303.

124 Thiru. A. Narayanasamy, President, Consumer Protection Committee, No.87,G.S.T, Road, Karunguzhi.

125 Thiru. E. Naiyinar, District Secretary, Tamil Nadu Senior Citizens and Pensioners Welfare Association, No.41, V.C. Ramasamy Complex, Natarajapuram, Vadiveeswaram, Nagercoil 2, Kanyakumari

247

126 Thiru T Babu, Founder Managing Trustee, Nugarvour Ulagam Trust, No 15/448, Keezhpaathi Street, Ikkadu Village & Post, Thiruvallur Taluk & District 602021

127 Thiru. N. Dharmaraj, TNEB Complex, Thillai nagar.

128 Thiru. N. Soundappan, & 30 others, Thathagampatti gate, Weavers colony Road, Salem 6.

129 Thiru. H. Khaja Bandhe Navas, 160A, Ashad Road, Melapalayam, Thirunelveli 627 005.

130 Thiru. Agri. M. Balaiyan, State President, Tamil Nadu Fish grow Farmers Welfare Association, Annavasal, Eda.Keezhaiyur Post, Mannarkudi Taluk, Thiruvarur Dist.

131 Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners Association, Sooriyampalayam 637 209, Thiruchengode Division, Namakkal Dist.

132 Thiru. N. Natesan, Secretary, Sooriyampalam Cooli sticking small powerloom waivers Association, Sooriyampalayam 637 209, Thiruchengode Division, Namakkal Dist.

133 Thiru. S.K. Irulappan, Small powerloom Cotton manufacturers Association, Sattaiyampudur, Thiruchengode, 637 211, Namakkal Dist.

134 Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners Association, Sooriyampalayam 637 209, Thiruchengode Division, Namakkal Dist.

135 Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners Association, Sooriyampalayam 637 209, Thiruchengode Division, Namakkal Dist.

136 Thiru M G Devasahayam, Managing Trustee, Citizen’s Alliance for sustainable living, C/so UN-Habitat Office, 5

th Floor, CMDA Building ( Tower I ),

Egmore, Chennai 8

137 Thiru. A. Kattabomman, Aavikkottai, Keelakurichi Post, Pattukottai Taluk, Thanjavur dist.

138 Thiru. S. Balasubramanian, No.15/108, Dindigul Road, backside to Divya Marriage Centre , Velliyanai 639 118. Karur Dist.

139 Thiru G Soundararajan, President, The South India Spinners Association, Flat No 103, “A “ Block, Raheja Centre, 1073 & 1074, Avinashi Road, Coimbatore 641018

248

140 Namakkal District Powerloom Weaving Association for Wages, 315/1, Salem Main Road, Komarapalayam 638183

141 Tiru V Sekar, President, Komarapalayam Kongu Powerlooms Urimaiyalargal Sanam, 2/227-02, Near Power House, Salem Main Road, Komarapalayam 638183, Namakkal district

142 Thiru Dr K Selvaraju, The Southern India Mills Association, Post Box No 3783, 41 Race Course, Coimbatore 641018

143 Thiru R Santha Moorthy, Secretary, Mettupalayam Consumer Protection Organisation, 216-B, Main Road, Meetupalayam 641301

144 Thiru. T. Moorthy, No.69, School Street, Velayaudapuram, Aruppukottai 626 101, Virudhunagar Dist.

145 Thiru Dr N I Rameshwar, Secretary, Neelagiri Mushroom Growers Association, Ooty 643006

146 Thiru Louis Duraiswamy No 14/1, Ramanujam Street ( Ground Floor ), Choolaimedu, Chennai 600094

147 Thiru K Gopalakrishnan, Hon General Secretary, Tamilnadu Small & Tiny Industries Association, No 10, GST Road, Guindy, Chennai 600032

148 Thiru. K. Balasubramanian, Manager, Animal Husbandry Department, (Retd), 7D, 1St Floor, Lakhshmi Avenue 4

th Cross Street, Amman Sethi,

Urapakkam Post, 603 210.

149 Thiru. Ramesh Belli, Joint Secretary, Nilgiris Pototas and Vegitable Manufacturers Association, Old Agraharam, Geetha Lodge Building, Udhagamandalam.

150 Chief Electrical Engineer, Southern Railway, Chennai 600003

151 Gudiyattam Taluk All Powerloom Entreprenours Association, Vedantha Padasalai, 29, Appu Subbaiar Street, Pichanoor, Gudiyattam 632601

152 Thiru Thiru. N. Venkatraman, Secretary, Mettupalayam Consumer Protection Organisation, 216-B, Main Road, Meetupalayam 641301

249

153 Thiru T Sekkilar, Circle Head Tamilnadu Circle Wireless TT Info Services Ltd, Celestial Point, # 45, Dhamodaran Street, T Nagar, Chennai 600017

154 Thiru A.P.Ramamoorthy 51, Vanaprastha, Vadavalli, Coimbatore 641041 E Mail : apr1818@hotmail.com

155 Thiru S Gandhi, President, Power Engineers Society of India, No 45/28, Balaguru Garden Extn,l Peeamadu, Coimbatore 641004

156 Thiru G Subramanian Secretary, Protection of Human Rights Centre, Headquarters : 24, Chinnaveeraraghavan Street, Kaveripakkam, Dindivanam.

157 Thiru. P. Periasamy, S/o Palaniappan, Velliyanai village, Karur Dist.

158 Thiru. K.G. Panneerselvam, Ex – President of Trichy Reporters Association, No.1, 5th Cross, N.M.K. Colony, TVS Toll Gate,

Trichy - 620 020.

159 Tmt R Gomathy Nayagam & Tmty G Kanaga sundari, 89/5, Boopalarayarpuram, Thoothukudi 1

160 Thiru. Viswanathan , Ammapettai, Salem 636 003.

161 Sr Leo Thomas, St Joseph’s Home for the Aged and Destitute, Podanur PO., Coimbatore 23 E Mail : sjhomecss@yahoo.com

162 Thiru Prof D S Hanumantha Rao, Former Member, TNERC, 4, Thiruchendur Flats, New 7, Babu Rajendra Prasad First Street, West Mambalam, Chennai 33

163 Thiru Dr N S Marimuthu, Principal, National Engineering College, K.R.Nagar, Kovilpatti 628503, Thoothukudi District

164 Thiru S Srinivasan, Dy Manager ( Legal ), Brakes India Ltd, Padi, Chennai 50

165 Thiru. L.K. Mathiniraiselvan, “Kumara “ Old No.17, 1st Floor, Thomas Nagar,

Chinnamalai, Saidapet, Chennai 15. (SC No.262-013-182).

166 Thiru. A.S. Ramamoorthy, Deputy Superintending Engineer(Retd), Public Works Department, No.6, 6

th Street, Society Colony,

Thanjavore 613 007.

250

167 Avram Ami Trust, No.9, Chairman Thulasiram 1

st Lane, Keelavelli Veedi,

Madurai 1.

168 Thiru R Duraisamy All India Induction Furnaces Association, 209, M.G. House, Community Centre, Wazirpur Industrial Area, Delhi – 52

169 General Manager ( Finance & Accounts ) Sri Kannapiran Mills Ltd, Post Bag No 1, Sowripalayam Post, Coimbatore – 641028

170 Thiru Venkatesh, Commercial Head – TN Circle, Reliance Communications, Reliance House, No 6, Haddows Road, Nungambakkam, Chennai 600006

251

Annexure III

ANNEXURE ANNEXURE ANNEXURE ANNEXURE ---- III III III III - Details of Persons who deposed before the Commission

Public Hearing at : Chennai, Date : 30-3-2010

Venue : Rani Seethai Hall

Sl

No. Name and Address of the Participants

1 Dr. K. Thankamuthu, Legal Chairman, 1, KGM Hospital, Coimbatore Road, Polachi - 2.

2 Dr. T.N. Ravi Shankar, Secretary, Indian Medical Association., Deepam Hospital, Tambaram Cell .9444047724.

3 Dr. Regavelu,Indian Medical Association, Tamil Nadu

4

Mrs. Canir Franklin, Treasurer, Association for Non-Traditional Employement for Women, AH, 16/107, 4th Street, Shantrhi Colony, Anna Nagar, Chennai 40. Phone : 26200697.

5

Thiru. G. Gopalakrishnan, Hon. General Secretary,Tamil Nadu Small and Tiny Industries Association, No.10, GST Road, Guindy,Chennai 32. Phone : 044-65610137.

6 Thiru. C.K. Mohan, Vice President, Tamil Nadu Small and Tiny Industries Association, No.10, GST Road, Guindy, Chennai 32. Phone 22250784l.

7 Dr. S. Periyandi, All District Ice Producers Welfare Association, (Sea Food Process ), 1/118, Keechankuppam, Nagapattinam 609 011. Ph : 9443370094

8 Thiru . S.S. Subramanian, General Secretary of COTEE(CITU), No.27, Masque Street, Chepuak, Chennai 5.

9 Thiru. V.S. Thiagarajan, ACMEC, Trust, Melmaruvathur Temple.

10

Thiru. B.V. Chandrashekar, Chief Electrical Distribution Engineer, Southern Railway.

11

Thiru. G. Vedagiri, Secretary, North Chennai House Owners Association, No.47/20, Narayanappan Naicken Thottam, 7th Street, Old Washermenpet,Chennai -21.

252

12

Thiru. G. Subramainian, Senior Manager - Electrical,Jumbo Bag Ltd., NO.75, Thatchur Kottu Road, Panjetty Village, Ponneri Taluk, Tiruvellore Dist. 601 204.

13

Thiru. G. Sriram, Se. Engineer, Rane Engine Valve Ltd., No. 4, Redhills Road, Madhavaram , Ponneri 601 204. Ph : 27974154.

14 Dr. A.K. Krishnasamy, 56, Kosa Anamalai Street, Gudiyatham 632 602,Vellore Dist. Cell : 9443340179.

15

Thiru. Raghunath, Administrative Officer, Sri Ayyappa Charitable Trust, 18, Sir Madhavan Road, Mahalingapuram Chennai 34.

16 Thiru. K. Mohan, General Secretary, Tamil Nadu Vanigar Sankangalin Peravai,No.2, Shop Street, Ambattur, Chennai 53. Ph : 96001 71669.

17 Thiru. S. Gandhi, Power Engineers Society of Tamil Nadu,Trichy 620 102 Mobile : 944300311.

18 Thiru. M. Narayanan, State Vice President,Tamil Nadu Farmers Association,46, A . VOC Street,Kasthuri Bai Nagar, Chennai 45.

19 Thiru. S. Kumaran, Associate Professor,Tamil Nadu Veterinary Animal Sciences University, MMC, Chennai 51 Mobile : 9444479988.

20 Thiru. A.P. Srinivasan, Consumer Protection Forum, Chennai 4.

21 Thiru. TRC Palaniraj, World Community Service Centre,Chennai 41 Mobile : 9445382348.

22

Thiru. Kamalakannan,Vice President,Mahkavi Bharathi Nagar Development House Welfare Association, AP 1092, 18th Central Cross Street, Mahakavi Bharathi Nagar, Chennai 39.

23

Thiru. Venugopal,President,Mahkavi Bharathi Nagar Development House Welfare Association, AP 1092, 18th Central Cross Street, Mahakavi Bharathi Nagar,Chennai

24 Mrs. A. Girija, Co-opted Member,Animal Welfare Officer, Animal Welfare Board of India, Thiruvanmiyur, Chennai 41.

25 Thiru. Deepamuthaiah,DEAN Foundation,No.73, New No.59, 2nd Street, Kilpauk, Chennai 10.

26 Thiru. G. Venkatraman, Secretary General,South India Hotels & Restaurants Association,No.M1, Prince Centre, 709-710, Anna Salai, Chennai 6.

27 Thiru.P.Thandurairajan,Tamil Nadu Progressing Counselling Centre, 604, C.T.H. Road, Pattabiram, Chennai - 600 072.

253

28

Thiru. R. Rangachari,Advisor,M1, Prince Centre, South India Hotels & Restaurants Association,No.M1, Prince Centre, 709-710, Anna Salai, Chennai 6.

29 Thiru. Seshadri, Chief Financial Officer, NO.6, Haddaws Road, Opp. Sastri Bhavan, Nungampakka, Chennai 6.

30 Thiru. Vijayaraghavan, NO.6, Haddaws Road, Opp. Sastri Bhavan, Numgampakkam,Chennai 36.

31 Thiru. Srinivasan, Sr. Manager Project - Vodopone,MRC nagar, Chennai 28.

32 Thiru. P.R. Sudhakar,General Mnager, Indirect Tax,Brakes India Ltd.,Padi, Chennai 50.

33

Thiru. Manoharan,Proprietor,The Pleasant Stay Hotels of Chennai,Old No.34A, New No.81A, Chandra Manor,Perumal Koil Street, Saidapet, Chennai 15.

34 Thiru. Saravanan,TN Congress Human Rights Dept. No162, 8th Street, NSK Nagar , Arumpakkam, Chennai 106.

35 Thiru. A.M. Selvam,117, 2nd Street,Tamil Nadu Housing Board Nagar,Velacheri, Chennai 42.

36 Thiru. S. Chandrasekaran,Secretary,Tamil Nadu Food Grains Merchants Association,No.8, Anderson Street, 1st Floor, Chennai 1.

37 Mrs. Parvathy,Working Women's Forum,No.55, Bhimasena Garden Road, Mylapore, Chenai 4.

38 Thiru. Rajagopal,170, AGS Colony,DEV Apartment,Velachery , Chennai 42.

39 Thiru. V. Ravichandran,Founder Chairman, Citizens Guardians, New No.1 Old No.2, Bank of India Colony, Chennai 83.

40 Thiru. A. Narayanasamy,S/o Arumugapillai, Malaipalayam 9th Ward Karunkuzhi 603 303.

41 Thiru. Sonaware UD,Joint Director /Services, HQ's Chief Engineer, Chennai Zone (MES), Chennai 9.

42 Thiru. Appasamy, President,TNEB's Engineer's Assocation, Chennai.

43 Thiru. T. Bhaskar,S/o. M. Thambiah Naidu,Ernavoor, Chennai 57.

44 Thiru. S. Periasamy,95/2, Poonamalli Road, Chennai 84.

45 Thiru P. K. Gunasekar,No.4, PKG 1st Lane,Sowcarpet, Chennai 79.

46

Thiru. V.G. Purusothaman,Tamizhaga Vivasayigal Sangam,Cheyyar, Tiruvannamalai Dist.,Mobile : 9025804422.

254

Public Hearing at : Madurai, Date : 08-04-2010

Venue : Tamil Nadu Chamber of Commerce, Platinum Jubilee Hatsun Auditorium, Kamarajar Salai, MADURAI - 625 006.

Sl

No. Name and Address of the Participants

1 P.SUBASHCHANDRABOSE, Honorary SECRETARY,The Tamil Nadu Foodgrains Merchants Association Ltd, 348, East Masi Street, Madurai

2 K.VELUSAMY, CONSUMERS ASSOCIATION, MELAKKOTTAI, THIRUMANGALAM TALUK

3 Thiru. S. Selvaraj, Joint Secretary ,Tamil Nadu Consumer Protection Council, Madurai

4 Dr. A. Krishnamoorthy, MBBS.,16/45, Mettu Street, Chinnapuliyampatti, Aruppukottai

5 Thiru. Arumai Rajagopal, President,All District Ice Manufacturers Welfare Association,1, Thirumullai vasal Road, Sirkazhi, Ph : 9443370094

6 Thiru. M. Pandian, President,Madurai District Farmers Sangam,86/1, South Street, Thenkarai, Periyakulam, 625 601.

7 Thiru. K. Muthaiah,SC No.SWC 191, Melamadai section and Pentioner,No.4/1055, Annai Abhirami Street, Anbu Nagar, Madurai 20.

8 Tmt. B. Lalitha,Secretary,Consumer Rights Protection Council,Paramakudi.

9 Tmt. M. Pandeeswari,General Secretary,Madurai District Public Welfare Association and Consumer Protection Committee,No.60, Yanaikkal Street, Madurai.

10 Thiru. Bramhachari Partha,Bharat Sevashram Sangha,Kattupillayar Koil Street, Rameswaram 623 526.

11 Thiru. N. Somasundaram,President,Madurai District Tiny & Small Scale Industries Association,1A-4A, Dr. Ambedkar Road, Madurai 625 020.

12 Dr. K.S. Mayilvaganan, M.S., President,Indian Medical Association,No.1, Panagal Road, Madurai - 625 020.

13 Dr. S. Babu, M.S.,Honorary Secretary,Indian Medical Association,No.1,Panagal Road, Madurai - 625 020.

14 Dr. P. Vijayarathinam,Vice President,Indian Medical Association,No.1, Panagal Road, Madurai - 625 020.

15 Dr. R. Ravindran,Joint Secretary,Indian Medical Association,No.1, Panagal Road, Madurai - 625 020

16

Dr. R.R. Vijayakumar, MBBS., DLD.,Indian Medical Association,No.1, Panagal Road, Madurai - 625 020.

17 Dr. V. Ravindranath, M.S., M.CH,Indian Medical Association,No.1, Panagal Road, Madurai - 625 020.

255

18 Dr. A.S.A. Jeganaathan, District Co-ordinator,Indian Medical Association, No.1, Panagal Road, Madurai - 625 020.

19 Thiru. A.R. Siva,Hanuman Weaving Mills,Kappalur SIDCO Industries Estate, Madurai.

20 Thiru. V. Balakrishnan, President,Amutha Surabi Kalai Mandram,Madurai.

21 Thiru. P. Chinnasamy,Secretary,Power Engineer's Society of TamilNadu, Madurai.

22 Thiru. T. Ramasubramanian,Legal Head,Reliance Communication Ltd., No.6, Haddows Road, Nungambakkam, Chennai

23 Thiru. Ghandiya M. Navabjan,Tamilaga Arasin Kottaiamir,445/378, Thirupathi Nagar, 2nd Cross Street,Solai Alagupuram 1st Street, Madurai 11.

24 Thiru. K. Devarajan,Avran Ami Trust, No.9, Chairman Tulasiram 1st Street, East Veli Street, Madurai 1 Ph : 9443832105.

25 Thiru. Ravichandran,Rajapalayam

26 Thiru. M.K.R. Ramkumar,Braided Cord Manufacturers & MerchantsAssociation, No.2/3A, A.A. Road,Chairman Muthuramaiar Road, Madurai 625 009.

27 Thiru. K.M. Ravindran,Darshini Associates,33/28, Sambanthamoorthy Street, Madurai. 1

28 Thiru. M. Kandaiya,Indian Express,Arivagam, 108/208, HMS Colony, Madurai 6.

29 Thiru. T. Kannan,No.45, 3rd Chekkady Street,Kovilpatti - 628 501.

30 Thiru. N. Jegadeesan,President,Tamil Nadu Chamber of Commerce,Kamarajar Salai, Madurai.

31 Thiru. K. Venkatachalam,Chief Adivisor,Tamil Nadu Spinning Mills Association,Dindigul.

32

Dr. S. Gnanasoundari, MBBS., DGO.,Indian Medical Centre,Perumalpuram, Kottaram, Kanyakumari 629 708.

33 Dr. M. Chandramohan, M.D.,Retd., Professor of Medicine,Madurai Medical College,26/83, East 6th Street, K.K.Nagar, Madurai 20.

34 Thiru. V.S. Boss,124, Karpaga Nagar 6th Street,K.Pudur, Madurai.

35 Thiru. S. Krishnasamy, Managing Partner,Backiya Industries,75/2Bs, NH 7, Nagari, Madurai 625 221.

36 Thiru. S.Srinivasan,Graham Travels Building,No.50, Police Station Road, Sivakasi 626 123.

37

Thiru. V. Jeyapaul,Dan Public Relations,1/473, Thamirabharani 1st Street, Sri Nagar,Iyyar Banglow, Madurai 14.

38

Thiru. M. Dharmaraj, Amaravathi Sri Venkatesa Paper Mills Ltd, Palani Road, Swaminathapuram, Madathukulam 642 113.

256

39 Thiru. O. Paramasivam, Joint Secretary,Consumer Rights Protection Council, Tallakulam, Tamukkam, Madurai.

40 Thiru. Ravindran, Vice President,Consumer Council Right Protection Committee,Tallakulam, Madurai. 2.

41 Thiru. N.S. Premkumar,Sri Pandian Textile Mills, (SC No. 109), T. Pudupati, Thirumangalam, Madurai.

42 Thiru. G. Rajagopal,Madurai Coffee and Tee Varthaga Sangam,124, North Masi Street, 1st Floor, Madurai.

43 Thiru. C. Thenuraj, General Manager,Veppoladai Salt Corporation, 13A/1, Pillaiyar Koil Street, Meenakshipuram West, Tuticorin 628 002.

44 Thiru. T.N. Gokulnath, President,Elders Forum for Social Awareness and Action,348-F, Muta Garden, Pasumalai , Madurai. 4.

45 Thiru. G. Irulandi,Madurai District Eliyoor Nala Sangam,Keelachandai Pettai, Madurai 9.

46 Thiru. K.K. N. Rajan,General Secretary,Joint Action Council for Citizens Improvement,Madurai.

47

Thiru. M.R. Krishnakumar,Secretary,Betal nut & Beedi Cigrette Merchants Association,58-59, Manchanakkara Muthaiah Pillaiya Street,Madurai 625 001.

48 B. Seenivasagam, Electrical Engineer,SriJayajothi & Company Ltd, 70, Alagai Nagar,Rajapalayam-626117.

49 Er. B. Velvendan, B.E.,Deputy General Manager (Elect), Rajapalyam Mills Ltd, PAC Ramasamy Rajasalai, Rajapalayam-626117

50 Thiru. Arima N.P. K. Malaichamy,District Advisor, Human Rights Protection Council,H.O.155/1,North Veli Street, Madurai-1.

51 Thiru. M. Subramanian,Branch Secretary,(TNEB Engineer's Sangam)Madurai.

52 Thiru. P. Rajendiran,Vice President,Madura Coats Pvt Ltd.,Madurai.

53 Dr. P. Alagarsamy,IMA Secretary,Mullaiperiyar,Cumbam, IMA.

54 Thiru. S. Devarajan,80/49, Athimoola Agraharam,Simakkal, Madurai.

55 Thiru. B. Kumaresan,30, Government Colony,Byekara, Madurai 5.

56 Thiru. Vijayaragavan,Secretary,Plastic Association Madurai.

Public Hearing at : Coimbatore, Date : 13-04-2010

Venue : Nani Kalaiarangam, Mani Higher Secondry School, Pappanaikan Palayam, Coimbatore.

Sl

No. Name and Address of the Participants

1 Thiru. K. Thangamuthu,Secretary,Tax payers Association,Pollachi

2 Thiru. H. Mani,Nilgiri Potato and Vegetable Grower's Association,Ooty, Nilgiris.

257

3 Dr.N.I. Rameshwar,Nilgiri Mushroom Growers Association, Coimbatore 18.

4 Thiru. P. Dhanraj,Amen Alloys Pvt Ltd,Sathy Road, Coimbatore 107.

5 Thiru. S. Ravikumar,President,Coimbatore Tiruppur District Micro and Cottage Enterpreneurs Association, (COTMA),Ganapathy, Coimbatore

6 Thiru. K. Ilango,President,(CODISSIA),Coimbatore District Small Industries Association,Coimbatore

7 Thiru. D. Balasundaram,Tamil Nadu Electricity Consumer Association, Coimbatore 18.

8 Thiru. T. Ramasubramanian,No.166, Race Course Road,Coimbatore.

9 Thiru. K. Nagaraj,Sri Moogambigai Steam Laundry,Coimbatore 641 001.

10 Thiru. R. Eswaramoorthy,District Secretary,Tamil Nadu Vivasayigal Sangam, Dharapuram, Thiruppur District.

11 Thiru. M. Krishnasamy, Ex. M.C.,No.1, Rakkatchi Garden, Maniakarampalayam, Coimbatore 641 006.

12 Dr. T.B. Ramakrishnan, Medical Superintendent,GKNM Hospital, Coimbatore.

13 Dr. T. Sundararajan,GKNM Hospital, Coimbatore.

14 Thiru.D. S. Hanumantharao,Former Member / TNERC,

15 Thiru. T. Velayutham,President,Tamil Nadu Agriculturist Association,Coimbatore.

16 Thiru. P. Narayanasamy,Agriculturist,Udumalpet.

17 Thiru. Nallasamy,President,Agriculture Association, Erode.

18 Thiru. Ramanathan,Agriculturist,Udumalpet.

19 Thiru. L. Parthiban,South India Imported Machine Knitters Association (SIIMKA) Tiruppur.

20 Thiru. S. Mukunthan,Sri Ayyanar Cold Storage,Madurai.

21 Dr. K.V. Kirupavathy,Sri Durga Polyclinic,Coimbatore 641 045.

22 Dr.A.K. Ravikumar,Mowthi Nursing Home Pvt. Ltd.,Vadavalli,Coimbatore.

23 Thiru. Ramesh Belli,Nilgiri Potato and Vegetable Grower's Association, Geetha Lodge Building, Ooty, Nilgiris.

24 Dr. R. Palaniswamy,President,(Indian Medical Association), Nurshing Home Board,NRP Hospitals,Sundarapuram, Coimbatore 24.

25 Thiru. V. Devarajuh,No.658, Crosscut Road,Coimbatore.

26 Thiru. B. Srihari,G.C. Member,Indian Chamber of Commerce and Industry, Coimbatore.

27 Thiru. K. Kasthurirangaian,Chairman,Indian Wind Power Association.

28 Thiru. Soundararajan,President,The South India Spinners Association, Flat No. 103-A Block, 1073 & 1074, Avinashi Road,Coimbatore - 641 018.

29 Dr. Girishkumar,President,Indian Medical Association,Coimbatore.

30 Thiru. N. Nithyanandan,C/o. Purani Textiles Pvt Ltd.,No.725, Avinashi Road, Coimbatore.

31 Thiru. S. Loganathan,574, D.B. Road,R.S. Puram,Coimbatore 2.

32 Thiru. A.V. Varadharajan,Tamil Nadu Electricity Consumers Association, 8/732, Avinashi Road, Coimbatore 18.

258

33 Thiru. N. Viswanathan,Indian Institute of Foundarymen,Coimbatore 18.

34 Dr. K. Selvaraju,Secretary General,The Southern India Mills Association,(SIMA),Race Course, Coimbatore.

35 Dr. K. Srinivasan,Managing Director,Premier Mills Pvt. Ltd., Race Course , Coimbatore.

36 Thiru. R. Chokkar, Ex. M.L.A.,Gokul Flats,Rayapettah, Chennai 14.

37 Thiru. B. Haridas,Kalapatti Road,Coimbatore 14.

38 Thiru. V. Tamil Selvan,Secretary,Coimbatore Consumer Action Club, 96/226, Tamilkudil Maco Street, Peelamedupudur, Coimbatore 4.

39 Thiru. V. Venugopal,Tamilaga Vivasayigal Sangam,Coimbatore 22.

40 Thiru. M. Senthilkumar,Secretary, Tamilaga Vivasayigal Sangam, Coimbatore.

41 Thiru. Leothomas,St. Joseph's Home for the Aged,Podanur, Coimbatore 23.

42 N. Gururao,Secretary,LIC Pensioners Association,Saroj Nilayam, Coimbatore 18.

43 Thiru. K. Arumugam,President,Erode District Rice Mill Owners Association, Ammankovil, Sivagiri.

44 Thiru. C.S. Krishnan,No.6, 4th Street (E), Periyar Nagar,Vadavalli, Coimbatore 641 041.

45 Thiru. N. Chinnasamy,Convenor,Pensioner's Welfare Organisation, Coimbatore.

46 Dr. A. Kumanan,R.A. Hospital,1/2, Aryan Soap Colony,Olymbus, Coimbatore.

47 Dr. J.G. Shanmuganathan,Chairman,Ganga Hospital,313, Mettupalayam Road, Coimbatore 641 043.

48 Thiru. K. M. Nanjan,Nilgiri Potato and Vegetable Grower's Association,Geetha Lodge, Ooty, Nilgiri.

49 Thiru. N. Logu,Coimbatore Consumer Voice,Opp. Medical College, Coimbatore 14.

50 Dr. S. S. Sukumar,President,IMA,Erode 1.

51 Thiru.M. Ramasamy,President, Tiruppur District Rice Mills Owners Association.

52 Thiru. P. Nandakumar,President,Coimbatore Bar Association,Coimbatore.

53 Thiru. N. Ranganathan,Advocate,Coimbatore Bar Association,Coimbatore.

54 Thiru. B.A. Vadooth,VOICE,No.12, Dawood Rawther Street,Mettupalayam.

55 Dr. S.V. Kandasami,Vedanayagam Hospital,R.S. Puram, Coimbatore.

56 Thiru S. Sivaramakrishnan,Secretary,Consumer Awareness Movement, Coimbatore.

57 Thiru. C.N. Povaneswaran,A.O.(Retd.), TNEB,Coimbatore 38.

58 Thiru. M.Boopathy,S/o Muthusamy,Tiruchencode,Namakkal District.

59 Thiru. K. Navaneethan,S/o Kulanthaisamy,Ganapathy, Coimbatore 6.

60 Thiru. C. Palanisamy,President,Coimbatore District Powerloom owners Association, Somanoor.

61 Thiru. Kuppurathinam,62/1, 9th Cross,Peelamedu, Coimbatore 4.

62 Thiru. K.P. Rangasamy,6, 7th Street,Alangadu, Tiruppur 4.

259

63 Thiru. N. Ramasamy,Vice Chairman,IIF - Coimbatore Chapter.

64 Thiru. C. Somasundaram,No.58, D.B. Road,RS puram, Coimbatore 2.

65 Thiru. R. Govindarajan,General Secretary,Power Engineer's Society of Tamil Nadu.

66 Thiru. V. Valliappan,Manager,Ennar Spinning Mills,Coimbatore.

67 Dr. N.S. Kumaresan,KGM Hospital,Chinniampalayam,Coimbatore.

68 Thiru. V. Gurumoorthy,Coimbatore.

69 Thiru. K.M. Subramanian,Chief Engineer (Retd.,)Tamil Nadu Electricity Board.

70 Thiru. O.P. Ponnusamy,President,Ganapathy Industries Traders Welfare Association (GITA),Coimbatore.

71 B. Sai Vanathi,Kovai Medical College Hospital, College of Nurshing, Coimbatore.

72 B. Girija,Kovai Medical College Hospital, College of Nurshing,Coimbatore.

73 C. Mohanambal,Kovai Medical College Hospital, College of Nurshing, Coimbatore.

74 Thiru. P. Kuzhanthaivel,Kovai Medical College Hospital, College of Nurshing,Coimbatore.

75 Smitha Kannadasan,Kovai Medical College Hospital, College of Nurshing, Coimbatore.

76 S. Padmapriya,Kovai Medical College Hospital, College of Nurshing, Coimbatore.

77 M. Rema,Kovai Medical College Hospital, College of Nurshing,Coimbatore.

78 R. Atchutha,Kovai Medical College Hospital, College of Nurshing,Coimbatore.

79 S. Amritha Singh,PPG College of Nurshing,Coimbatore.

80 C. Vinothini,PPG College of Physiotheraphy, Coimbatore.

81 Thiru. M.P. Thangavelu, Chairman,Ashwin Hospital,Ashwin PPG Cancer Hospital,Coimbatore Cancer Institute & Research Centre,Sathy Main Road, Coimbatore - 12.

82 Thiru. Vellingiri, Vedanthira Maharishi Ashram, Aliyar.

Public Hearing at : Tiruchirapalli, Date : 15-04-2010

Venue : Taj Kalyanamandapam, Karur Bypass Road, (Opp. to Kalainger Arivalayam, Tiruchirapalli.

Sl

No. Name and Address of the Participants

1 Thiru. A. Jayaraman,No.33, Govindammal Nagar,Seelanayakkanpatti, Salem.

2 Thiru. R. Nagarajan,Secretary,Min Kudiyiruppor Sangam,No.46, Min Nagar, Kajamalai, Tiruchirapalli -23.

3 Thiru. Vaiyapuri Marimuthu,3/19, Bharathi Nagar,Tiruchirapalli 12.

260

4 Thiru. M. Vetrivel,5/D349A, 1st Cross,Anna nagar, Tiruchirapalli 17.

5 Thiru. K. Chandrasekaran,Vettamangalam Post,Karur District.

6 Thiru. R.P. Sathishkumar,S/o Ramasamy,Nadaiyanur Post,Karur District.

7 Thiru. S. V. Angappan,General Secretary,TNEB Accounts and Executive Staff Union,29, Meeran Sahib Street, Anna Salai Chennai 2.

8

Thiru. S. Balasubramanian,Secretary,Tamil Nadu Minsara Payaneettalar Sangam,2A, Ayodhya, Sai Brindavan,No.1, Ramakrishna Nagar, 2nd Main Road,Adambakkam, Chennai 88.

9

Thiru.S. Dhanavelu,General Secretary,Federation of Consumer Organisation of Tamil Nadu and Puducherry, 5790, Santhananthapuram 4th Street, Pudukottai 622 001.

10 Thiru. K.P. Rangasamy,Sanmathi Exports,65/C, Benny Main Road, Tiruppur.

11 Thiru. Kannan @ N. Ramakrishnan,Social Worker,49A/22, 2nd Street, Summer House,Thennur, Tiruchirapalli 620 017.

12 Thiru. P. Dharmaraj,21C, NNN Building, Palakkarai,Tiruchirapalli 8.

13 Thiru. K. Ganesan,10/2, Burma Colony,Thiruverumbur,Tiruchirapalli 13.

14 Thiru. K. Subramanian,Ex. District Secretary,Thiruchirapalli Puranagar Cooli Arisi Aalai,Pettavaithalai, Tiruchipallai District.

15 Thiru. S. Srinivasan,S/o. R. Subramanian,39, P.V.S. Koil Street, Uraiyur, Tiruchirapalli 3.

16 Thiru. V. Muthukaruppan,No.15, Ponni Nagar,Punganur, Tiruchirapalli 9.

17 Thiru. N. Sridhar,47, Periyar Nagar,Tiruvanai Koil ,Tiruchirapalli 5.

18 Thiru. R. Raja Chidambaram,State Secretary,Thamilaga Vivasaya Sangam, Nagamangalam Post, Perambalur District.

19 Thiru. C. Rajarathinam,36/7 Pappakurichy, Kattur, Tiruchirapalli 19.

20 Thiru. S. Kudbudhin,2/200, Nagamangalam,Tiruchirapalli 12.

21 Thiru. M. Giriraja,4/39C, Ehigiri Mangalam,Tiruchirapalli 102.

22 Tmt. M. Manimalai,Peruvalapur, Saminathapuram Colony,Lalgudi Taluk, Tiruchirapalli District.

23 Tmt. G. Sumathi,Kolakudi, Kannagudi Post,Lalgudi Taluk, Tiruchirapalli District.

24 Thiru. A.M. H. Mohammad Salim,Al Aman Hospital,Koothanallur, Tiruvarur District.

25 Tmt. J. Nirmala,Pengal Viduthalai Munnani,No.4, Bharathidasan Nagar, 10th Cross, Thillai Nagar, Tiruchirapalli 18.

26 Thiru. U. Indhumathi,NO.5, Bahrathidasan Nagar,Thillai Nagar, Tiruchirapalli 18.

27 Tmt. R. Yogeshwari,85, Gandhipuram,Thillai nagar,Tiruchirapalli 18.

28 Thiru. V. Neelakandan,District Youth Secretary,Thamilaga Vivasayigal Sangam,27, Pillaiyar Koil Street,A. Metur Post, Perambalur District.

29 Thiru. D. S. Rangarajan,Sundaraj Nagar Kudiyiruppor Sangam, Tiruchirapalli.

30 Thiru. Rajappa Rajkumar & Sivasubramanian,BHEL Small and Medium Industries Association,Tiruchirapalli

261

31 Tmt. R. Bhavani,No.10A, Muslim Street,Market, Tiruchirapalli 1.

32 Thiru. M. Jeeva,Gandhipuram, Thillai nagar, Tiruchirapalli 18.

33 Thiru. M. Ramadoss,Gandhipuram, Thillai nagar, Tiruchirapalli 18.

34 Thiru. G. Ragunath,Thillai nagar, Tiruchirapalli 18.

35 Tmt. S. Kala,Alwarthope,Tennur, Tiruchirapalli 17.

36 Thiru. J. Krishnaswamy,Assistant Accounts Officer, General Construction Circle,TNEB, Tiruchirapalli.

37 Thiru. N. Ramajeyam,Accounts Officer,General Construction Circle,TNEB, Tiruchirapalli.

38 Thiru. P. Malaiyandi,State Assistant President, Thozhilalar Munnetra Sangam,TNEB, Tiruchirapalli 20.

39 Thiru. C.R. Rajasekaran,S/o C. Ramaiyan, North Car Street,Srimushnam.

40 Thiru. S. Mohammed Ibrahim,State Committee Member,Citizen's for Human Rights Movement,149, EB Road, Tiruchirapalli 2.

41 Thiru. S. Raja,23/3, Palakkarai ,Tiruchirapalli 1.

42 Thiru. G. Raja,18, A.R. Building,Melapudur,Tiruchirapalli 1.

43 Thiru. N. Ganesan,District Secretary,Tamilaga Vivasayigal Sangam,Jadamangalam, Musiri Taluk, Tiruchirapalli Dist.

44 Thiru. R. Subramaniam,Deputy Secretary, Kaveri Delta Vivasaya Nala Sangam,Tiruchirapalli.

45 Thiru. A. Leo Joseph,4/168, North kattur,Vasantha Nagar,Kattur.

46 Dr. A. Zameer Basha,Chairman,Tamil Nadu Nurshing Home Board, Indian Medical Association, Tiruchirapalli.

47 Dr. R. Gunasekaran,State President,Indian Medical Association (Tamil Nadu )

48 Thiru. S. Palanikumar,Manager,CSI. Mission Hospital,Woraiyur, Tiruchirapalli 3.

49 Thiru. M. Sekaran,Tamil Nadu Federation and Seva Sangangalin Koottamaipu.

50 Thiru. Agri. M. Balaiyan,President,Tamil Nadu Fish Farmer's Welfare Association,Mannargudi.

51 Thiru. Kottur R. Rajasekaran,Manila DMK Vivasaya Ani, Joint Secretary,Mannargudi.

52 Thiru. Poora Visuvanathan,State President, Tamil nadu Eari and Atrupasana Vivasayigal Sangam,Tiruchirapalli.

53 Thiru. P.K.C.C. Ganesan,Honarary President, Tamil Nadu Fish Grower Welfare Association,Sembanar Koil 609 309.

54 Thiru. Purushothaman,State Correspondent,Tamilaga Vivasayigal Sangam, Salem.

55 Thiru. O.R. Shriraman, M.C.,95/41B, Big Sowrashtra Street,Tiruchirapalli 620 008.

56 Thiru. K. Mahalingam,Uzhavar Ayvu Mandra Organisar, Peruvalanallur , Lalgudi Taluk.

57 Thiru. B.R.S. Gouthaman,Youth Hospital,M.C. Road,Thanjavur 613 007.

58 Thiru. K. Suresh,CPI - Secretary,1A, Periyamilagu parai,Tiruchirapalli 1.

262

59 Thiru. U. Sankar,Divisional Electrical Engineer,Southern Railway , Tiruchirapalli.

60 Thiru. S. Jayakrishnan,Senior DEE / TRO,Southern Railway,Tiruchirapalli.

61 Thiru. J. Selvaraj,President,Tiruchirapalli District Consumer Movement, 18, Mettu Street, Beema Nagar, Tiruchirapalli 1

62 Thiru. C. Palaniyappan,D/18, Jeeva Nagar, Thennur High Road, Tiruchirapalli 620 008.

63 Thiru. Anbuselvan,News Reporter,21C, NNN Building , Kajamohideen Street, Palakkarai, Tiruchirapalli 8.

64 Thiru. S. Pushpavanam,Secretary,Consumer Protection Council Tamilnadu, No. 2, RMS Building, Tiruchirapalli 18.

65 Thiru. R. Kothandaraman,PA to DIG of Police,(Retd),41/1A, SRS Building, Tiruchirapalli.

66 Thiru. P.R. Lakshminarayanan,Deputy Secretary,Worldwide Human Rights and Consumer,51/23, W.C. Street, Srirangam.

67 Thiru. S. Gopal,MY Way Computer Centre,NO.5, Salai Road, Woraiyur, Tiruchirapalli.

68 Thiru. K. Poosaimani,KKR Complex, 3rd Floor, Chatram Bus Stand, Tiruchirapalli.

69 Thiru. V.G. Purushothaman,Tamilaga Vivasayigal Sangam, PRO - Tiruvannamalai.(Dr. Sivasami Ani)

70 Thiru. Sivasooriyan,District Secretary,Tamilnadu Vivasayigal Sangam, Periyamilagu Parai, Tiruchrapalli.

71 Thiru. D. Bhaskaran, Ruby Chlorates Pvt Ltd., No.11B, Saminatha Sastri Road,Tennur, Tiruchirapalli 17.

263

Annexure IV

ANNEXURE IV - List of Letters received from TNEB

Sl

No

Date Letter No

1 08-02-2010 CFC/Rev/Dir/Tf Cell/EE/F.Agriculture /D.No 29/2010

2 08-02-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.31/2010

3 23-02-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.53/2010

4 24-02-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.58/2010

5 25-02-2010 CFC/Rev/Tf.Cell/AEE/F.Tariff Petition/D.59/2010

6 12-03-2010 CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.64-1/2010

7 18-03-2010 CFC/Rev/Dir/Tf Cell/EE/F.Tariff Petition/D.No 97/09

8 24-03-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 111/2010

9 05-04-2010 CFC/Rec/Tf Cell/AEE/F. Tariff Petition/D.No 58-1/2010

10 07-04-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 282/2010

11 07-04-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 284/2010

12 12-04-2010 CFC/Rev/Tf Cell/EE/AEE/F.ITES/D.No 295/2010

13 18-04-2010 CFC/Rev/Tf Cell/AAO/F.Tariff Petition/D.No 327/2010

14 20-04-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 330/2010

15 22-04-2010 UO No CE/NCES/EE/WPP/AEE2/F.Tariff Petition/D.1815/10

16 23-04-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 339/2010

17 23-04-2010 U.O. No.SE/GTS/EM/A4/F-VGTPD(Phase II)/D 382/10

18 04-05-2010 CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 365/2010

19 04-06-2010 CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.438/2010

20 04-06-2010 CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.439/2010

21 22-07-2010 CFC/Rev/Dir/Tf.Cell/EE/F.T.P/D.489/10

Annexure-V

TAMIL NADU ELECTRICITY REGULATORY COMMISSION

(Constituted under section 82 (1) of Electricity Act 2003)

(Central Act 36 of 2003)

Corrigendum to Order No.3 of 2010 dated 31-07-2010

The following errata are issued to the Tariff Order dated 31-07-2010:-

Sl.

No

Para / line / Table Existing To be read as

1 Second sentence in

para 1.6.3 (Page 6)

The gas based stations

(except Basin Bridge) were

performing at a of PLF more

than 70% during 2007-08 and

2008-09.

The gas based stations

(except Basin Bridge) were

performing at a PLF of more

than 70% during 2007-08 and

2008-09.

2 2.11 (Page 19) Tariff for HT II A –

Educational Institutions and

Recognized Hospitals

Tariff for HT II A – Educational

Institutions and Hospitals

3 2.17 (Page 22) Tariff for LT Educational

Institutions, Recognized

Hospitals, etc

Tariff for LT Educational

Institutions, Hospitals, etc

4 3.2.2 (Page 65) HT - Recognized Educational

Institutions etc.

HT - Educational Institutions

etc.

5 Table 7 (Page 65) Sales Projections for HT

Recognized educational

institutions

Sales Projections for HT

educational institutions

6 3.2.11 (Page 74) LT - Recognized Educational

Institutions etc.

LT - Educational Institutions

etc

7 Table 20 (Page 74) Projection of sales by TNEB

for LT recognized educational

institutions

Projection of sales by TNEB

for LT educational institutions

8 Table 21 (Page 75) Sales trend for LT recognized Sales trend for LT educational

educational institutions institutions

9 Table 22 (Page 75) Projection of sales by TNERC

for LT recognized educational

institutions

Projection of sales by TNERC

for LT educational institutions

10 3.2.16.8 (ii) – (Page

81)

The number of consumers as

on 31-03-2009 is taken as

1884750..

The number of consumers as

on 31-03-2009 is taken as

1889204 based on subsidy

reconciliation report of TNEB

11 Table 40 (Page 84) Sales projections by TNERC

for LT commercial

Sales projections by TNERC

for LT commercial (in MU)

12 Words in 9th line in

para 4.1.7 (Page

96)

equity ration equity ratio

13 Last sentence in

para 4.1.7 (Page

97)

The adjustmeny could be

positive or negative and this

adjustment will be carried out

in the true up petition for

2010-11 along with carring

cost.

The adjustment could be

positive or negative and this

adjustment will be carried out

in the true up petition for 2010-

11 along with carrying cost.

14 First sentence in

para 6.2.2.10 (Page

130)

The estimated per MW capital

of hydro generating plant is

very high.

The estimated per MW capital

cost of hydro generating plant

is very high.

15 First sentence in

para 6.3.19 (Page

138)

The TNEB has not furnished

the details for computing

Interest during construction,

revenue expenditure incurred

in project consecration

The TNEB has not furnished

the details for computing

Interest during construction,

revenue expenditure incurred

in project construction.

16 7.3 (Page 159) In respect of power

generated in the station

owned by the distribution

licensee and distributed by

the licensee itself in his

area of supply, the

In respect of power

generated in the station

owned by the distribution

licensee and distributed by

the licensee himself in his

area of supply, the

generation tariff of the

station shall be considered

as the transfer price to the

distribution licensee which

will be determined in the

licensee’s tariff petition

itself.”

generation tariff of the

station shall be considered

as the transfer price to the

distribution licensee which

will be determined in the

licensee’s tariff petition

itself.”

17 Para 7.10.1 (Page

164)

The TNEB procures coal from

the following sources through

multi model transport (rail,

sea-rail) under coal shipping

agreement for the power

plants

The TNEB procures coal from

the following sources through

multi model transport (rail, sea-

rail) under coal supply

agreement for the power plants

18 First row in Table

136 in para 7.14.7

(1) (Page 172)

HFO (Rs / kg) HSD/LDO (Rs / kg)

HFO (Rs / kl) HSD/LDO (Rs / kl)

19 7.14.8..2 (Page

173)

Regulation 7 (7) (i) of the

TNERC Tariff Regulations

specify the following

Regulation 6 (7) (i) of the

TNERC Tariff Regulations

specify the following

20 Last row in tables

158, 159 160 and

161 in para 7.15.4.1

(Page 185 and 186)

Energy Rate (in paise / unit) Energy Rate (Rs / unit)

21 8.1 (Page 191) Determination Annual

Transmission Charges

Determination of Annual

Transmission Charges

22 9.4.1.1 (Page 198) Power purchase cost for the

control period

Power purchase cost for the

control period (Rs in Crores)

23 9.4.9 (Page 201) The comprehensive Revenue

Requirement claimed TNEB is

compared with the revenue

requirement admitted by the

Commission for distribution

licensee.

The comprehensive Revenue

Requirement claimed by TNEB

is compared with the revenue

requirement admitted by the

Commission for distribution

licensee.

24 9.11.19 under the

column Monthly

minimum (in

Rupees) (Page 226)

40 / kw 40/ kw or part thereof of the

contracted load

25 Fourth line in

condition (1) under

para 9.11.20 LOW

TENSION TARIFF

IV (Page 228)

pump sets of Government coil

seed farms

pump sets of Government oil

seed farms

26 Second sentence in

para 9.11.21 (3) –

(Page 229)

Non–compliance shall invite

compensation charges as per

TNEB’s terms and conditions

Non–compliance shall invite

compensation charges as per

TNERC’s Regulations

27 Revenue gap

arrived by TNERC

for the year 2010 -

11 in table 184

under para 9.14

(Page 232)

7905.04 7905.40

28 9.15.3 (1) – (Page

234)

The case of Orissa relates to

treatment the difference in

revenue due to different basis

of calculation of T & D losses

adopted by the GRIDCO

(41%) and the OERC (35%).

The case of Orissa relates to

treatment of the difference in

revenue due to different basis

of calculation of T & D losses

adopted by the GRIDCO (41%)

and the OERC (35%).

29 The first three

sentences in sub-

para (9) of para

9.15.3 (Page 235)

The Commission has arrived

at the gap for these years as

Rs.7905.04 crores,

Rs.6062.24 crores and

Rs.3489.18 crores

respectively and this gap is

after allowing a tariff increase

of Rs.1650.46 crores. It is to

The Commission has arrived at

the gap for these years as

Rs.7905.40 crores, Rs.6062.24

crores and Rs.3489.18 crores

respectively and this gap is

after allowing a tariff increase

of Rs.1650.46 crores. It is to

be noted here that the last tariff

be noted here that the last

tariff hike in Tamil Nadu was

in June 2003 and the TNEB

has not preferred any tariff

revision thereafter,

eventhough their operating

costs have been going up.

hike in Tamil Nadu was in

March 2003 and the TNEB has

not preferred any tariff revision

thereafter, eventhough their

operating costs have been

going up.

30. The existing tariff schedule under para 9.11.21 (Page 229) shall be read as below:

Existing:

9.11.21 LOW TENSION TARIFF V:

Tariff Consumption slabs –

Range in kWh(units) and

billing period (one or

two months)

Energy

charges in

paise / kWHr

Fixed charges

(Rupees /

Month)

Monthly minimum (in Rupees)

Low

Tension

Tariff V

From 0 to 50 units per

month ( or)

0 to 100 units for two

months

430 30

From 51 to 100 units per

month ( or)

101 to 200 units for two

months

530 30

From 101 and above per

month ( or)

201 and above for two

months

650 30

40

To be read as:

9.11.21 LOW TENSION TARIFF V:

Tariff Consumption slabs –

Range in kWh(units) and

billing period (one or two

months)

Energy

charges in

paise /

kWHr

Fixed

charges

(Rupees /

Month)

Monthly

minimum

(in Rupees)

0 to 50 units per month ( or)

0 to 100 units for two

months

(as per para 9.10.10 of the

order)

430 30

40

From 0 to 100 units per

month ( or)

0 to 200 units for two

months

530 30

Low

Tension

Tariff V

From 101 and above per

month ( or)

201 and above for two

months

650 30

40

-Sd- -Sd- (K.VENUGOPAL) (S.KABILAN) MEMBER CHAIRMAN