ASSAM ELECTRICITY REGULATORY COMMISSION (AERC) TARIFF ORDER TRUING UP OF FY 2013-14 APR OF FY 2014-15, ARR AND TARIFF FOR FY 2015-16 Assam Power Distribution Company Limited (APDCL) Petition No. 3/2015 ASSAM ELECTRICITY REGULATORY COMMISSION A.S.E.B. Campus, Dwarandhar, G. S. Road, Sixth Mile, Guwahati - 781 022 Website: www.aerc.gov.in Email: [email protected]
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1.5.6 APDCL further published a corrigendum on April 24, 2015, regarding rectification of
published “submission date of comments”, from May 11, 2015 to May 15, 2015 in the
following four (4) newspapers on April 24, 2015
Date Name of newspapers Language
April 24, 2015
Amar Asom Assamese
Asamiya Pratidin Assamese
Dainik Janambhumi Assamese
Dainik Agradoot Assamese
1.5.7 The Commission considered the objections received and sent communication to the
objectors to take part in the Hearing process for presenting their views in person
before the Commission. Accordingly, the Commission scheduled a Hearing in the
matter on June 04, 2015 at Guwahati. In this context, Notices were dispatched to the
objectors personally/by Registered Post stating the date and time of Hearing. Also, a
comprehensive Notice for Hearing was published in the following seven (7)
newspapers on May 27, 2015 in Assamese and English language. The Hearing was
held at the District Library Auditorium, Guwahati on June 04, 2015 as scheduled.
Date Name of Newspaper Language
27.05.2015
The Assam Tribune English
The Sentinel English
Amar Asom Assamese
7
Date Name of Newspaper Language
Asamiya Pratidin Assamese
Dainik Janambhumi Assamese
Dainik Jugasankha English
Purbanchal Prahari English
1.5.8 All the written representations submitted to the Commission and oral submissions
made before the Commission in the hearing and the responses of APDCL have been
carefully considered while issuing this Tariff Order. The major issues raised by
different consumers and consumer groups along with the response of APDCL and
views of the Commission are elaborated in Chapter 3 of this Order.
1.6 STATE ADVISORY COMMITTEE MEETING
A meeting of the State Advisory Committee (constituted under Section 87 of the Act)
was convened on May 8, 2015 at Assam Administrative Staff College, Khanapara,
Guwahati. The Members of SAC were briefed on the Petitions of APDCL. The
suggestions made by the members of SAC have been duly taken into consideration
by the Commission while finalizing the tariff order..The minutes of the meeting,
relating to APDCL Tariff Petition, is appended to this order as Annexure 1.
8
2. Summary of ARR and Tariff Petition
2.1 TRUE-UP FOR FY 2013-14, APR OF FY 2014-15 AND ARR FOR FY 2015-16
The APDCL filed the Petition for approval of truing up of FY 2013-14 (without the
audited accounts), APR of FY 2014-15 and ARR and tariff for FY 2015-16 (Petition
No. 3/2015) on January 31, 2015, under Section 62 of the Act‟03.However, APDCL
has submitted their Audited Statement of Accounts for FY 2013-14 later, on March
12, 2015.
2.2 SUMMARY OF THE PETITIONS
Summary of the Petitions filed by APDCL for truing-up for FY 2013-14, APR of FY
2014-15, and ARR & tariff determination for FY 2015-16, is shown in the Table
below:
Table 2.1: Summary of Truing Up for FY 2013-14 (Rs. Crore)
Particulars 2013-14 Revised Controll
able
Uncontr
ollable Approved Actual Claim
Cost of power purchase 2134.26 2670.05 2647.60 -513.34
Operation & Maintenance
Expenses 590.11 660.58 660.58 -70.47
Employee Cost 537.98 560.64
Repair & Maintenance 35.25 69.09
Administrative & General
Expenses 16.88 30.85
Depreciation 6.08 55.16 24.13 -18.05
Interest and Finance Charge 28.89 114.19 114.19 -85.30
Interest on Working Capital 27.05 28.26 -1.21
Other Debits - 4.15 4.15 -4.15
Interest on Consumer security
deposit 32.17 32.49 32.49 -0.32
Provision for Bad Debt - 41.14 41.14 -41.14
Net prior period expenses - (18.70) (18.70) 18.70
True Up adjustments 230.00 230.00 0.00
Others - 0.00 0.00
Other expenses Capitalised - - 0.00
9
Particulars 2013-14 Revised Controll
able
Uncontr
ollable Approved Actual Claim
Sub-total 3048.56 3559.07 3763.84 0.00 -715.28
Return on Equity 22.79 35.20 -12.41
Provision for tax/ tax paid - 0.00
Total Expenditure 3071.35 3559.07 3799.04 0.00 -727.69
Less: Non Tariff Income - 18.43 18.43 18.43
Aggregate Revenue
Requirements 3071.35 3540.63 3780.61 0.00 -709.26
Revenue with approved Tariff
including FPPPA 2603.54 2642.15 2642.15 38.61
Other Income (Consumer
Related) 203.50 205.33 205.33 1.83
Total Revenue Before Subsidy 2807.04 2847.49 2847.49 0.00 40.45
Targeted Subsidy 100.00 28.22 28.22 -71.78
Other subsidy 100.00 137.00 137.00 37.00
Total Revenue after subsidy 3012.71 3012.71 0.00 5.67
Total Claim -64.31 -527.93 -767.90 0.00 -703.59
It is to be noted that the above figure of "Revenue with approved Tariff including FPPPA" is not correctly reported by APDCL. The figure should be Rs. 2767.84 Crores instead of Rs. 2603.54, Crores as per the MYT Order dated November 21, 2013. As such, the "Total Claim" shall be NIL.
Revenue with approved Tariff 3241.26 2929.13 2929.13 -312.12
Recovery of FPPPA 84.63 84.63 84.63
Other Income (Consumer Related) 231.00 209.86 209.86 -21.14
Total Revenue Before Subsidy 3472.26 3223.62 3223.62 0.00 -248.64
Targeted subsidy 0 174.78 174.78 174.78
Other subsidy 81.64 81.64 81.64 0.00
Total Revenue after subsidy 3553.9 3480.04 3480.04 0.00 -73.86
Gap/surplus -424.94 -1090.75 -1065.17 0.0 -640.23
It is to be noted that the above figure of "Revenue with approved Tariff" is not correctly reported by APDCL. The figure should be Rs. 3666.19 Crores instead of Rs. 3241.26,Crores as per the Tariff Order dated November 21, 2014. As such, the Gap will be Rs. 100 Crores instead of Rs.424.94 Crores.
APDCL considered the following parameters for estimation of Revenue requirement of Rs.
4341.47 Crore for FY 2015-16, as shown in the Table below:
Table 2.3: Revenue Requirement for FY 2015-16
Sl. No. Particulars Amount
1 Approved ARR for FY 2015-16(Rs. Crore) 3312.56
2 Deficit in the approved ARR(Rs. Crore) 51.66
3 Net additional claim(Rs. Crore) 541.44
4 Add, regulatory asset created vide order dated 21.11.14(Rs. Crore) 100.00
5 Add, additional revenue consequent to revision vide order dated 21.11.14 as well as consideration of FPPPA @36 paisa per unit consequent to revision of gas price (Rs. Crore)
Accordingly, Commission approves Interest and Finance Charges at
Rs. 41.03 Crore for FY 2015-16.
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6.15 INTEREST ON WORKING CAPITAL
The Commission had approved the Interest on Working Capital of Rs. 44.14 Crore
for FY 2015-16 in the MYT Order dated November 21, 2013.
For computing Interest on Working Capital, APDCL has considered the rate of
interest at 14.75% which is the short-term PLR of SBI.
The Commission has computed the Interest on Working Capital as per the AERC
Tariff Regulations, 2006, as shown in the Table below:
Table 6.16: Interest on Working Capital for FY 2015-16 (Rs. Crore)
Approved in MYT Order dated
November 21, 2013
Proposed by APDCL
Approved for FY 2015-16
O&M Expenses- One month 64.54 65.01 59.29
Maintenance spares at 1% of GFA
29.70 22.21 19.69
Receivables for 60 days 543.04 616.51 721.30
Less: consumer security deposit
338.01 373.16 460.07
Receivable excluding consumer security deposit
205.03 243.35 261.23
Working Capital 299.28 330.57 340.20
Rate of Interest on WC as on April 01, 2015
14.75% 14.75% 14.75%
Interest on Working Capital 44.14 48.76 50.18
Accordingly, the Commission approves the Interest on Working Capital at
Rs. 50.18 Crore for FY 2015-16.
6.16 INTEREST ON CONSUMER SECURITY DEPOSIT
The Commission, in its MYT Order dated November 21, 2013, had approved
Interest on Consumer Security Deposit at Rs. 33.47 Crore for FY 2015-16. APDCL
has not proposed any amount as Interest on Consumer Security Deposit for FY
2015-16.
As per AERC (Electricity Supply Code and Related Matters) Regulations, 2004
(First Amendment 2007), APDCL is required to pay Interest on Consumer Security
Deposit on a yearly basis. Therefore, APDCL should have proposed Interest on
Consumer Security Deposit. It is observed that APDCL has not fully complied with
the relevant regulations and directions of the Commission in this regard. APDCL is
directed to expedite the compliance on this account and ensure all consumers are
paid interest on security deposit.
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Accordingly, the Commission has allowed Rs. 15.00 Crore as Interest of
Consumer Security Deposit and APDCL should ensure the payment of this
amount to the consumers. The Commission shall true up this figure later based on
Audited Statement of Accounts.
Accordingly, the Commission approves Interest on Security Deposit as Rs.
15.00 Crore for FY 2015-16.
6.17 PROVISION FOR BAD AND DOUBTFUL DEBTS
The Commission did not approve any provision for bad debts for FY 2015-16 in its
MYT Order dated November 21, 2013. APDCL has also not claimed any Provision
for Badand doubtful debts for FY 2015-16
Accordingly, the Commission considers provision for Bad and Doubtful
debts as Nil for FY 2015-16.
6.18 OTHER DEBITS
The Commission did not approve any other debits for FY 2015-16 in its MYT
Order dated November 21, 2013. APDCL has not claimed any other debits for FY
2015-16
Accordingly, the Commission considers other debits as Nil for FY 2015-16.
6.19 NET PRIOR PERIOD EXPENSES
APDCL also not claimed any amount under such head for FY 2015-16. The
Commission also considers net prior period expenses as Nil in the ARR for
FY 2015-16.
6.20 RETURN ON EQUITY
The Commission had approved Return on Equity (RoE) of Rs. 22.79 Crore for FY
2015-16 in the MYT Order dated November 21, 2013. As against the same,
APDCL has claimed Return on Equity of Rs. 35.20 Crore for FY 2015-16 and the
same is shown in the following Table:
Table 6.17: Return on Equity for FY 2015-16 as submitted by APDCL (Rs. Crore)
Particulars
Approved in Order
dated November 21,
2013
APDCL
Proposal
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Particulars
Approved in Order
dated November 21,
2013
APDCL
Proposal
Equity Capital as on 31-03-2015 162.77 251.45
Equity Capital as on 31-03-2016 162.77 251.45
Average Equity Capital for FY 2015-16 162.77 251.45
Rate of ROE 14.00% 14.00%
RoE for FY 2015-16 22.79 35.20
As per the AERC Tariff Regulations, 2006, Return on Equity shall be computed on
the actual Equity Capital employed in the business or 30% of the GFA of that year,
whichever is lower.
Accordingly, the Commission retains the RoE at Rs. 22.79 Crore for ARR of
FY 2015-16.
6.21 NON TARIFF INCOME
The Commission did not approve any amount for Non Tariff Income for FY 2015-
16 in the MYT Order dated November 21, 2013. As against the same, APDCL
has proposed Non Tariff Income of Rs. 83.54 Crore for FY 2015-16 on account of
periodical surplus power sale, as projected by APDCL. It should be noted that
while considering the power purchase cost for FY 2015-16, only the energy
requirement for sale within the State and the corresponding power purchase cost
has been allowed. Hence, no Non Tariff Income is considered for FY 2015-16.
Accordingly, the Commission considers Non Tariff Income as Nil for FY
2015-16.
6.22 MISCELLANEOUS RECEIPTS/OTHER INCOME
The Commission had approved Other Income as Rs. 255.27 Crore for FY 2015-16
in its MYT Order dated November 21, 2013. APDCL proposed for Miscellaneous
Income/Trading Income at the same level i.e. Rs. 255.27 Crore for FY 2015-16.
Accordingly, the Commission retain the miscellaneous receipt/ other income
of Rs. 255.27 Crore for FY 2015-16.
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6.23 GOVERNMENT SUBSIDY
APDCL submitted that Govt. of Assam has declared category wise subsidy for FY
2014-15 in order to provide financial relief to the following category consumers‟
consequent to hike in tariff by AERC on 21.11.2014 as detailed below:
Sl. No. Category of consumers Existing subsidy
(`/unit)
1 Jeevan Dhara 1.31
2 Domestic-A (up to 120 units per month) 1.01
3 LT Commercial for consumption upto 120 units
per month 0.60
4 Small Industries Rural (up to 20KW) for
consumption upto 120 units per month 0.30
5 Small Industries Urban for consumption upto 120
units per month 0.30
APDCL submitted that on the basis of estimation in the tariff order, Government of
Assam has sanctioned Rs 309 Crore on this account during FY 2014-15.
However, APDCL also submitted that, as the revised tariff was made effective
from December 01, 2014; subsidy for FY 2014-15 will be effective for only four
month in 2014-15 and as such, subsidy for balance eight months amounting to Rs.
206 Crore (Rs. 309 Crore÷12x8) has been adjusted in the claim for FY 2015-16.
The Commission has taken into consideration the submission of APDCL and has
accordingly, worked out the category wise tariff by adjusting the amounts of
eligible subsidy against the targeted categories of consumers. The subsidized
tariff for the targeted categories of consumers, are contingent upon payment of
subsidy as agreed by the Government. Without the Government subsidy, the rates
contained in the full cost recovery tariff schedule shall become operative.
.
6.25 REVENUE AT PROPOSED TARIFF
For FY 2015-16, the revenue at proposed tariff (which is same as the existing tariff
except changes in LT Agriculture, LT Temporary Agriculture and new category of
HT Temporary) has been computed considering the approved sales, connected
load and no of consumers for FY 2015-16 and the existing category-wise tariff
(without subsidy) as per Tariff Order dated November 21, 2014. Accordingly, the
Revenue at existing tariff for FY 2015-16 works out to Rs. 4386.55 Crore.
129
6.26 ANNUAL REVENUE REQUIREMENT (ARR)
The ARR for FY 2015-16 as analyzed in the above paragraphs, is summarized in
the Table below:
Table 6.18: Approved ARR for FY 2015-16 (Rs. Crore)
ARR Elements
Approved in MYT Order
dated November 21, 2013
Proposed by APDCL
Approved
Cost of Power Purchase 2721.21 3743.11 3481.61
Employee cost 627.50 662.11 633.34
Repair & Maint. Expenses 42.65 81.59 45.01
Admin.& Gen. Exp. 18.96 36.43 33.10
Depreciation 14.64 29.36 7.24
Interest & Finance charges 42.47 95.50 41.03
Interest on working Capital 44.14 51.31 50.18
Interest on CSD 33.47 0 15.00
Provision for Bad Debts 0 0 0
Net prior period expenses 0 0 0
Other debits 0 0 0
Return on Equity 22.79 35.20 22.79
Total expenditure 3567.82 4734.62 4329.29
Non Tariff Income - 83.54 -
Total ARR 3567.82 4651.08 4329.29
Other Income 255.27 255.27 255.27
Net ARR for FY 2015-16 3312.85 4395.81 4074.02
6.27 REVENUE GAP FOR FY 2015-16
APDCL projected the revenue requirement of Rs. 4341.47 Crore for
FY 2015-16, however, APDCL had not included the revenue gap on account of
true-up of FY 2013-14,, as shown in the following Table:
Table 6.19: Cumulative Revenue Gap for FY 2015-16 as sought by APDCL (Rs.
Crore)
Sl. No.
Particulars Amount
1 Approved ARR for FY 2015-16 3312.56
2 Deficit in the approved ARR 51.66
3 Net Additional claim 541.44
5 Add: Regulatory asset created vide order dated 21.11.14 100.00
6 Add: Additional revenue consequent to revision vide order dated 21.11.14 as well as consideration of FPPPA @ 36 paisa per unit consequent to revision of Gas price
541.80
7 Total Revenue Requirement 4547.47
130
Sl. No.
Particulars Amount
8 Less: Subsidy amount effective till November, 2015 206.00
9 Net Amount 4341.47
13 Estimated sale of energy (MU) 6115.53
14 Average Tariff (Rs./kWh)* 7.10
*APDCL Proposal of Average Tariff is exclusive of their Proposal of Revenue Gap for True-Up of
FY 2013-14
It is observed from the above table, that APDCL has wrongly considered Rs. 206
Crore as Revenue Subsidy. This subsidy amount is actually for a few targeted
categories of consumers, as declared by Government of Assam.
In this Order, the Commission has undertaken the final truing up for FY 2013-14
and determined Revenue deficit of Rs. 213.87 Crore, as elaborated in Chapter 4
of this Order, the same is considered for determination of Revenue Gap for FY
2015-16. The Commission has also allowed pass through of the Regulatory Asset
of Rs. 100 Crore created vide Tariff Order dated November 21, 2014 while
approving Net Revenue Requirement for 2015-16.
Hence, the approved revenue gap/surplus for FY 2015-16 is given in the table
Add regulatory Asset Created vide Tariff Order dated November 21, 2014
100.00
Total Revenue Requirement 4387.89
Revenue Subsidy 0.00
Revenue from Sale of Power at existing tariff 4386.55
Gap(-)/Surplus(+) considering revenue at Existing Tariff
-1.34
*Revenue from Sale of Power has been calculated on full cost recovery tariff and the effect of Government Targeted Subsidy is shown in the Tariff Schedule.
As the approved gap is only Rs. 1.34 Crore, the Commission is of the opinion that
the gap should be met by APDCL through efficiency improvement measures.
Accordingly, the Commission has not changed the existing tariff schedule, except
for LT agriculture, LT Temporary Agriculture and inclusion of a new category of HT
Temporary. The details of tariff design are given in the next Chapter.
131
7 Tariff Principles and Approved Tariff for FY 2015-16
7.1 INTRODUCTION
In determining the revenue requirement and the retail supply tariff of APDCL for
FY 2015-16, the Commission has been guided by the provisions of the Electricity
Act, 2003 and the National Electricity Policy (NEP), the Tariff Policy, and the
AERC Tariff Regulations.
Section 61 of the Act lays down the broad principles and guidelines for
determination of retail supply tariffs. The basic principle is to ensure that tariff
should progressively reflect the cost of supply of electricity and reduce the cross
subsidies amongst categories within a period to be specified by the Commission.
The Act lays down special emphasis on safeguarding of consumers interest and
also requires that the costs should be recovered in a reasonable manner. The Act
mandates that tariff determination should be guided by factors which “encourage
competition, efficiency, economical uses of resources, good performance and
optimum investment”. The Tariff Policy notified by the Government of India
provides comprehensive guidelines for determination of tariff as also working out
the revenue requirement of power utilities. The Commission has followed these
guidelines, as far as possible.
The Commission has carried forward, the process of rationalization of tariff in
order to ensure that the tariffs reflect as far as practicable, the cost of supply. In
order to determine the voltage-wise cost of supply, the Commission requires a
number of inputs from the Utility based on the data developed on sustainable
basis.
The Hon‟ble Appellate Tribunal for Electricity, in its Judgment dated 14 March,
2006 in Appeal No. 3 of 2005 filed by some consumers in Assam, has observed
on implementation of cost of supply as under:
“___ The cost of supply of electricity must be determined in accordance
with the principle laid down in the Act. Since the relevant data was not
available with the Commission, it was not possible for it to determine the
“cost of supply of electricity” we cannot ask the Commission to do the
impossible. Since in the past the Commission was not in a position to give
132
appropriate direction for want of data. We will now direct the utilities that
the installations be metered at strategic locations to perform energy audit
for determining losses and supply to various classes of consumers
immediately, so that it is possible for the AERC to determine the cost of
supply to different categories of consumers. We presently decide not to
interfere with the order of the Commission in this aspect of the matter”.
In this context, the Commission in its Order dated 16 May, 2011 had issued
directives to APDCL to carry out a study to ascertain voltage-wise and consumer
category-wise cost of supply. Compliance with the Directives issued and
Commission's comments have been elaborated in the Directives Chapter.
Till the Commission is able to calculate voltage wise cost of supply, the
Commission has attempted to maintain the cross-subsidy within +/- 20% of the
average cost of supply as mandated by the Tariff Policy, taking into consideration
the “cost of supply” implemented by the Commission to various categories of
consumers in its earlier Tariff Order. The Commission has set a loss reduction
target for APDCL. Reduction of distribution loss and better performance by
APDCL will result in reduction of losses and consequently the average cost of
supply.
7.2 REVENUE DEFICIT / SURPLUS FOR FY 2015-16
Sr.
No.
Particulars Approved vide FY
2014-15 Order
dated November 21,
2014
Approved for FY
2015-16 in this
Order
1 Total LT Sales (MU) 2905 3559
2 Total HT Sales (MU) 2317 2824
3 Total Sales (MU) 5221 6383
4 Total Revenue from Sale of
power (Rs. Crore)*
3666.19 4386.55
5 Average Revenue per Unit
(Rs./kWh)
7.02 6.87
6 Net ARR (Rs. Crore) 3666.19 4387.89
7 Average Cost of Supply
(Rs/kWh)
7.02 6.87
* Revenue figures have been calculated at full cost recovery tariff (i.e. without subsidy). The
schedule of tariff in FY 2015-16 is the same as the schedule of tariff for FY 2014-15, except for
133
LT Agriculture, LT Temporary Agriculture and newly introduced category of HT Temporary
Supply.
It can be observed from the above table, that the average per unit revenue in FY
2015-16 has reduced from Rs. 7.02/kWh in FY 2014-15 to Rs. 6.87/kWh due to
the change in sales mix, as shown above. The per unit revenue for FY 2015-16 is
almost same as the average cost of supply, as approved in this Order.
For determination of the ARR for FY 2015-16 and tariff for FY 2015-16, the
Commission has considered the ARR approved for APGCL and AEGCL for FY
2015-16, in their respective Tariff Orders dated July 24, 2015. Further, the impacts
of truing up for APGCL and AEGCL for FY 2013-14, have been incorporated while
approving the ARR for APGCL and AEGCL for FY 2015-16, respectively.
The Commission has approved the net revenue gap for FY 2015-16 as Rs. 1.34
Crore, as elaborated in Chapter 6 of this Order. However, as mentioned above,
the gap has not been considered for Tariff Design.
7.3 TARIFF DESIGN
For the tariff schedule of FY 2015-16, the Commission has introduced a new
category of HT Temporary Supply, as proposed by APDCL.
The full cost recovery based category-wise tariffs and increase/decrease in tariff is
given in the following Table:
Table 7.1: Category-wise full cost recovery tariff and decrease/increase in
tariff in FY 2015-16
Sl. No. Consumer Category
Decrease/ Increase in tariffs Revised tariffs
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
LT Group
LT-1 Jeevan Dhara 0.5 kW and 1 kWh/day
No change No change
15 410
LT-II Domestic A- above 0.5 kW to 5 kW
0 to 120 units per month No change No change 30 495
121 to 240 units per month
No change No change
30 625
Balance units No change No change 30 725
LT-III Domestic-B above 5 kW to 20 kW
No change No change
30 685
134
Sl. No. Consumer Category
Decrease/ Increase in tariffs Revised tariffs
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW or Rs/kVA)
Energy Charges
(paise per kWh)
LT-IV Commercial Load above 0.5 kW to 20 kW
No change No change
110 755
LT-V General Purpose Supply No change No change 125 635
LT-VI Public Lighting No change No change 120 640
LT-VII Agriculture upto 7.5HP No change Decrease of 30 paise
30 430
LT-VIII(i)
Small Industries Rural upto 20 kW
No change No change
30 485
LT-VIII(ii)
Small Industries Urban upto 20 kW
No change No change
40 510
LT-IX Temporary Supply No change
Domestic No change No change 80 875
Non-Domestic Non- Agriculture
No change No change
125 1085
Agriculture No change Decrease of 225 paise
50 450
HT Group No change
HT-I HT Domestic 25 kVA and above
No change No change
30 680
HT-II HT commercial 25 kVA & above
No change No change
115 755
HT-III Public Water Works No change No change 125 605
HT-IV Bulk Supply 25 kVA and above
No change
HT-IV(i)
Government Educational Institutions
No change No change
110 645
HT-IV(ii)
Others No change No change
145 725
HT-V(A)
HT Small Industries upto 50 kVA
No change No change
40 560
HT-V(B)
HT Industries-1 50 kVA to 150 kVA
No change No change
100 625
HT-V(C)
HT Industries-II above 150 kVA
No change No change
140 685
HT Industries-II above 150 kVA (Option 2)
No change No change
270 600
HT-VI Tea, Coffee & Rubber No change No change 230 675
HT-VII Oil & Coal No change No change 270 735
HT-VIII HT Irrigation Load above 7.5 HP
No change No change
40 585
HT Temporary Supply New Category 145 850
It can be observed that, except for LT Agriculture & LT Temporary Agriculture, the
tariff for other categories have been kept unchanged from the existing level. Also,
a new category of HT Temporary has been introduced.
Further, as specified in the section 6.23, after issue of the last tariff order issued
by the Commission on November 21, 2014, the State Government had declared
targeted subsidies for a few categories. Based on the existing level of subsidy, the
Commission has worked out the category wise tariff by adjusting the amounts of
135
eligible subsidy against the targeted categories of consumers. The same is shown
below:
Table 7.2: Category-wise Tariff Without Subsidy and Tariff With Subsidy
Sl. No. Consumer Category
Tariff Without Subsidy (Full Cost Recovery Tariff)
Tariff With Existing Subsidy
Fixed Charges (Rs/kW or Rs/kVA)
Energy Charges (paise per kWh)
Fixed Charges (Rs/kW or Rs/kVA)
Energy Charges (paise per kWh)
LT Group
LT-1 Jeevan Dhara 0.5 kW and 1 kWh/day
15 410 15 279
LT-II
Domestic A- above 0.5 kW to 5 kW
0 – 120 kWh per month 30 495 30 394
121 – 240 kWh per Month
30 625 NA NA
Balance kWh 30 725 NA NA
LT-IV
Commercial Load above 0.5 kW to 20 kW
0 to 120 units per month 110 755
110 695
Above 120 units NA NA
LT-VIII(i)
Small Industries Rural upto 20 kW
0 to 120 units per month 30 485
30 455
Above 120 units NA NA
LT-VIII(ii)
Small Industries Urban upto 20 kW
0 to 120 units per month 40 510
40 480
Above 120 units NA NA
Note: The subsidized tariff for the targeted categories of consumers, are contingent upon
payment of subsidy as agreed by the Government. Without the Government subsidy, the
rates contained in the full cost recovery tariff schedule shall become operative.
For categories other than those specified above for targeted subsidy, the full cost
recovery tariff shall be applicable, as existing and shown in Table 7.1. The detailed
schedule is given separately.
7.4 CROSS SUBSIDY
The Tariff Policy notified by the Ministry of Power, Government of India on January
5, 2006, stipulates as under:
"8.3 Tariff design : Linkage of tariffs to cost of service
...
Accordingly, the following principles would be adopted:
136
1. In accordance with the National Electricity Policy, consumers below
poverty line who consume below a specified level, say 30 units per month,
may receive a special support through cross subsidy. Tariffs for such
designated group of consumers will be at least 50% of the average
cost of supply. This provision will be re-examined after five years.
2. For achieving the objective that the tariff progressively reflects the cost
of supply of electricity, the SERC would notify roadmap within six months
with a target that latest by the end of year 2010-2011 tariffs are within ±
20 % of the average cost of supply. ...
For example if the average cost of service is Rs 3 per unit, at the end of
year 2010-2011 the tariff for the cross subsidised categories excluding
those referred to in para 1 above should not be lower than Rs 2.40 per
unit and that for any of the cross-subsidising categories should not go
beyond Rs 3.60 per unit."
Accordingly, the Commission has attempted to limit the cross subsidy to + 20% of
the average cost of supply while determining the tariffs to different categories of
consumers, excluding Jeevan Dhara category, as per the guidelines of the Tariff
Policy, as shown in the Table below:
Table 7.3: Category-wise cross-subsidy in FY 2015-16 (paise/kWh)
Sl. No.
Category of consumers Average Billing Rate
Average Cost of Supply
Cross-subsidy as Ratio of Average Billing Rate to ACOS (%)
LT Category
1. Jeevan Dhara 0.5 kW and 1kWh/day
462 687 67.23%
2. Domestic A- above 0.5 kW to 5 kW
577 687 83.92%
3. Domestic-B above 5 kW to 20 kW 753 687 109.48%
4. Commercial Load above 0.5 kW to 20 kW
865 687 125.82%
5. General Purpose Supply 755 687 109.85%
6. Public Lighting 712 687 103.53%
7. Agriculture upto 7.5HP 540 687 78.57%
8. Small Industries Rural upto 20 kW 557 687 81.03%
9. Small Industries Urban upto 20 kW
579 687 84.28%
10. Temporary Supply
(i) Domestic 875 687 127.28%
(ii) Non Domestic non Agriculture 1085 687 157.83%
(iii) Agriculture 450 687 65.46%
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HT Category
11. HT Domestic 25 kVA and above 750 687 109.16%
12. HT commercial 25 kVA & above 847 687 123.18%
13. Public Water Works 687 687 99.95%
14. Bulk Supply 25 kVA and above
14A Government Educational Institutions
717 687 104.23%
14B Others 799 687 116.23%
15. HT Small Industries upto 50 kVA 617 687 89.72%
16. HT Industries-1 50kVA to 150 kVA 720 687 104.71%
17. HT Industries-II above 150 kVA 742 687 107.90%
18. Tea, Coffee & Rubber 807 687 117.35%
19. Oil & Coal 817 687 118.87%
20. HT Irrigation Load above 7.5 HP 664 687 96.62%
21. HT Temporary 850 687 123.64%
As can be seen from the above Table, the average billing rate for almost all
categories is within the band of 80% to 120% of average cost of supply, which is in
accordance with the Tariff Policy.
7.5 FUEL PRICE AND POWER PURCHASE ADJUSTMENT CHARGES (FPPPA)
Fuel Price and Power purchase adjustment charges as per the Regulations
notified by the Commission are applicable. As per Regulation 5.2 of the AERC
(Fuel and Power Purchase Price Adjustment) Regulations, 2010 “The FPPPA
charges shall not exceed 25% of the variable cost component of tariff or such
other ceiling as may be stipulated by the Commission from time to time, where the
variable component of tariff is defined as total estimated revenue from energy
charges (EC) in a year the approved in the Tariff Order divided by total estimated
sales of the year. When FPPPA charges exceed 25% of the variable component
of tariff, the licensee shall make a petition to the Commission for recovery of the
charges over the specified cap which shall be recovered after Commission’s
scrutiny and directives”.
APDCL shall strictly follow the above Regulation and when FPPPA charges
exceed 25% of the variable components of the tariff, APDCL shall file a Petition
before the Commission and FPPPA charges beyond 25% of the variable cost
component of tariff shall be recovered only after Commission‟s scrutiny and
approval.
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8. Wheeling Charges and Cross subsidy surcharge
8.1 INTRODUCTION
The Commission has in the present Order determined the wheeling charges for
distribution business of APDCL for FY 2015-16.
8.2 ALLOCATION MATRIX
The Commission has considered the following matrix for allocation of expenses
between the wires business and retail supply business in its Order passed on 21
November, 2013.
Table 8.1: Allocation matrix for separation of ARR for Wires Business and
Retail Supply Business
Sl.
No. Particulars
Wire
Business
Retail Supply
Business
1 Power purchase expenses 0% 100%
2 Employee expenses 60% 40%
3 Repair and Maintenance expenses 90% 10%
4 Administration and General expenses 50% 50%
5 Depreciation 90% 10%
6 Interest and Finance charges 90% 10%
7 Interest on working capital 10% 90%
8 Interest on Security deposit 0% 100%
9 Bad debts written off 0% 100%
10 Income tax 90% 10%
11 Return on equity 90% 10%
12 Other income 10% 90%
13 Non-tariff income 0% 100%
14 Revenue subsidy 0% 100%
The Commission has adopted the same allocation matrix given in Table 8.1 above
for segregation of the approved ARR for wires business and retail supply business
for APDCL for FY 2015-16, as given below:
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Table 8.2: Separation of ARR for Wires Business and Retail Supply
Business for FY 2015-16 (Rs. Crore)
Sl.
No, Particulars
Allocation Matrix Separation of Wheeling Charges and Retail Supply Charges
Wire Business
Retail Supply Business
Wire Business
Retail Supply Business
Total
1 Power purchase expenses
0% 100% 0.00 3481.61 3481.61
2 Employee expenses 60% 40% 380.01 253.34 633.34
3 Repair and Maintenance expenses
90% 10% 40.51 4.50 45.01
4 Administration and General expenses
50% 50% 16.55 16.55 33.10
5 Depreciation 90% 10% 6.51 0.72 7.24
6 Interest and Finance charges
90% 10% 36.93 4.10 41.03
7 Interest on working capital
10% 90% 5.02 45.16 50.18
8 Interest on Security deposit
0% 100% 0.00 15.00 15.00
9 Provision for Bad debts 0% 100% 0.00 0.00 0.00
10 Income tax 90% 10% 0.00 0.00 0.00
11 Return on equity 90% 10% 20.51 2.28 22.79
12 Less: Other income 10% 90% 25.53 229.74 255.27
13 Less: Non-tariff income 0% 100% 0.00 0.00 0.00
14 Less: Revenue subsidy 0% 100% 0.00 0.00 0.00
15 TOTAL ARR
480.50 3593.52 4074.02
8.3 WHEELING CHARGES
The wheeling charges for distribution open access consumers and 33 kV voltage
level for FY 2015-16, has been determined from the ARR of the Wires Business
distribution, as determined in Table 8.2 above.
Table 8.3: Wheeling charges approved by the Commission for FY 2015-16
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Particulars Unit FY 2015-16
Total energy input into Distribution system MU 7746
Total distribution cost Rs. Crore 480.50
Distribution cost for wires business for 33 kV voltage level (assuming 35% of cost at 33 kV)
Rs. Crore 168.17
Wheeling charges for 33 kV voltage level Paise/kWh 22.00
The wheeling charges for FY 2015-16, as determined in Table 8.3 above, are
applicable for use of the distribution system of APDCL by other licensees or
generating companies or captive power plants or consumers/users who are
permitted open access at 33 kV voltage level under Section 42(2) of the Electricity
Act, 2003.
8.4 CROSS SUBSIDY SURCHARGE
The open access consumers are liable to pay the cross subsidy surcharge to
compensate the utility for any loss of revenue due to the shifting of the consumer
to the open access system. In accordance with Regulation 4.3 of the AERC
(Terms and Conditions for Open Access) Regulations, 2005, consumers with a
connected load of 3 MW and above shall be allowed open access with effect from
1 April, 2008. Accordingly, HT category V (C): HT-II Industry consumers may likely
opt for open access.
As per the approach adopted in the Tariff Order for FY 2014-15 dated November
21, 2014, the cross subsidy surcharge for HT-II industry category, is shown in the
Table below:
Table 8.4: Cross subsidy surcharge for HT II Industry category for FY 2015-
16
Sl. No.
Particulars Unit Amount
1 Average Billing Rate of that category Rs./kWh
7.41
2 Average Cost of Supply Rs./kWh
6.87
3 Cross-subsidy (1) - (2) Rs./kWh
0.54
4 Cross subsidy surcharge Rs/kWh
0.54
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9. Compliance of Directives by APDCL and new Directives
9.1 COMPLIANCE OF DIRECTIVES ISSUED BY THE COMMISSION
The Commission, in its Tariff order for FY 2008-09 and FY 2009-10 dated May 24,
2009, MYT Order dated May 16, 2011 for FY 2010-11 to FY 2012-13 and Tariff
Order dated February 28, 2013 for FY 2012-13, had issued certain directives to
APDCL. APDCL has submitted the Compliance of Directives along with the
subsequent Petitions. Further, the Commission held a meeting with APDCL on
May 21, 2014 to review the status of compliance of directives issued in the MYT
Order dated November 21, 2013 for FY 2013-14 to FY 2015-16. APDCL, vide its
letter dated September 23, 2014, also submitted the report on status of
Compliance of directives issued on May 21, 2014. Further directives were issued
with tariff order of FY 2015-16, dated November 21, 2014. APDCL through its
letter dated January 31, 2015, has replied to these directives
The Commission‟s comments on the status of compliance of old and fresh
Directives by APDCL are discussed in this Chapter and further directives have
been issued, wherever necessary.
9.2 COMPLIANCE OF OLD DIRECTIVES
Directive 1: Filing of Fixed Assets Registers
APDCL is directed to file duly authenticated Fixed Assets Registers. Further, to
maintain proper and detailed Fixed Asset Registers at field offices to work out
depreciation expenses, the Commission directs APDCL to submit a report to the
Commission citing clearly as to how they are maintaining fixed assets registers for
the various assets.
Compliance by APDCL:
APDCL submitted that the Fixed Assets Registers (6 volumes) upto March 31,
2014, has been submitted.
Commission’s Comments:
The compliance of APDCL is noted. APDCL shall also submit the Report on how it
is maintaining the fixed assets registers for the various assets.
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Directive 2: File Physical Verification Report of Fixed Assets
APDCL is directed to file the verification report of Fixed Assets by a competent
and reliable authority at the end of each financial year beginning with FY 2005-06
and onwards.
Compliance by APDCL:
APDCL submitted that for the physical verification of the Fixed Assets, an
outsourced consultants has already been appointed and they are actively
engaged for the work. APDCL further submitted that the report is expected soon
and APDCL will be able to submit the report within the targeted date of 30th
November 2015.
Commission’s Comments:
APDCL should submit the Physical Verification Report to the Commission latest by
November 30, 2015.
Directive 3: Circle-wise Trajectory for Loss Reduction:
APDCL is directed to fix-up circle-wise trajectory for loss reduction and prepare a
detailed action plan for reduction of Distribution and AT&C losses. APDCL should
submit the Report on loss levels vis-a-vis the loss reduction target for each circle,
on a six-monthly basis.
Compliance by APDCL:
APDCL had submitted the circle wise distribution loss level trajectory for the next
five years. APDCL submitted that several measures have been undertaken by it to
reduce distribution loss and improve the collection efficiency. Further, APDCL
submitted that to strengthen the distribution network, they are undertaking
investment under various schemes and also undertaking various other measures,
details of which have been provided.
APDCL submitted that with the completion of the projects and measures stated as
above the distribution loss has come down to 20.16% during FY-14-15
Commission’s Comments:
The Commission appreciates the efforts being taken by APDCL to reduce the
distribution losses in different circles, however, more focussed efforts should be
put by APDCL for achieving the targets set in accordance with the investment
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made..
Directive 4: Database on TOD consumption
The Commission intends to extend the benefit of TOD tariff to other HT category
consumers. The Commission directs that the Load Research Cell under the
Discom should collect more data of other HT category consumers and submit to
the Commission for making a database on TOD consumption.
Compliance by APDCL:
APDCL has submitted a report on the TOD consumption of other HT categories
not covered under TOD Tariff is in compliance with the directive of the
Commission.
Commission’s Comments:
The Commission has not received the required data of ToD consumption of other
HT consumers. As such, APDCL is once again directed to submit the required
data at the earliest.
Directive 5: Pilferage of Energy
For curbing theft of power, APDCL is directed to constitute a task force in each
zone to carry out massive raid to arrest pilferage.. Also, if anyone is found
committing mischief of pilferage, required penal action should be taken in such
cases.
Compliance by APDCL:
APDCL submitted that as per Commission‟s instructions, a „Task Force‟ under
each zone has been formed for constant monitoring of the anti-power-theft
operation to be conducted jointly by the Special P.S.in coordination with the
APDCL offices in the respective jurisdiction of the said P.S. Also, APDCL
submitted the performance report of the special police stations from August‟2014
to December‟2014.
Commission’s Comments:
The compliance of APDCL is noted. APDCL should continue to adopt measures
for curbing theft of power.
Directive 6: Energy Audit and Demand Side Management
The energy audit should be taken up first in all the towns with a population of fifty
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thousand and above. The first status report on the action taken for energy audit in
all the towns should be reported to the Commission by end September, 2011 to
issue further directives in this regard, if required.
Regarding DSM, the Commission had directed APDCL to constitute a DSM Cell
for carrying out load research, formulation of DSM Plans, design, development
and implementation of DSM activities, etc. The Commission directs that a status
report on the activities of DSM Cell be submitted
Compliance by APDCL:
In compliance to the directive, APDCL submitted that under the ongoing DSM
program of APDCL, a consumer survey is being carried out by the external
consultants and the work is expected to be completed by January‟ 2015. APDCL
further submitted that it has submitted the progress report in this regard to the
Commission.
Commission’s Comments:
The Commission is concerned with the delay in compliance of this directive. The
report of energy audit as well as the DSM plan has not been submitted by APDCL
till now. APDCL is directed to expedite the compliance of this directive and should
give more focus on energy audit and DSM. If required, APDCL should also appoint
external agencies for implementation of the directive. The Commission in this
order has also allowed additional provision of Rs. 1 Crore for incurring expenses
on DSM and energy efficiency inititatives.
Directive 7: Annual Accounts
APDCL is directed to ensure that the annual accounts are completed and audited
by the Accountant General in time.
Compliance by APDCL:
Audited annual accounts for 2013-14 is submitted.
Commission’s Comments:
The true-up is done based on audited accounts and there is delay in issue of final
ARR order if the audited accounts are not available on time. APDCL should
ensure that the audited accounts of the past year are submitted along with the
ARR petitions each year by 1 December.
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Directive 8: Employee Cost
APDCL is directed to enforce economy and austerity measures in their operations
and take steps to reduce establishment cost by utilizing the existing man-power
optimally, and imposing restriction on creation of posts and introducing revised
work load norms. Further, APDCL is also directed to identify surplus staff and
deploy them after proper training, in the area of customer service, in the meter
reading, billing and revenue realization so as to provide better service to the
consumer. The first report on the action taken may be sent to the Commission by
30, June 2011.
Compliance by APDCL:
APDCL submitted that the required report is being prepared and will be submitted
to the Commission.
Commission’s Comments:
The Commission directs APDCL to expedite the pending work and submit the
report to the Commission at the earliest.
Directive 9: Pending Applications for Connection/Augmentation
A report on the expansion of the Sishugram sub-station capacity as well as the
status of other pending industrial small scale sector and other industrial
applications, etc., may be submitted to the Commission before 30 June, 2011.
Compliance by APDCL:
In response to the compliance of directive, APDCL submitted the status of pending
HT applications (above 20 KW) of APDCL as on December 31, 2014. A total 38
such applications were reported to be under process.
Commission's Comments:
The compliance of APDCL is noted. APDCL should ensure that the standard of
performance in this regard should be met..
Directive 10: Improvement in quality of service
APDCL is directed to take appropriate steps to improve the quality of service,
especially quality of supply to its consumers. The quality of power being supplied
to consumers, especially in the rural areas needs substantial improvement.
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Adequate steps need to be taken so that reliable, uninterrupted and quality power
is made available to the consumers.
Compliance by APDCL:
APDCL submitted that it is trying its best for providing better quality and reliability
power to its esteemed consumers. APDCL further submitted that remarkable
improvement in quality of service has been noticed during the FY-14-15 and
further improvement will be achieved with the implementation of all ongoing
projects under different schemes and through proper monitoring with the help of
ERP. APDCL has submitted the data related to reliability indices like CAIFI and
CAIDI as a part of compliance report of SoP.
Commission's Comments:
While, the Commission recognized the efforts of APDCL, it is also observed that
there is a large scope of improvement in quality of supply and service. APDCL
should take required steps for improving quality of supply and service.
Directive 11: Prepaid Meters
APDCL should implement prepaid metering initially as a pilot study and based on
the pilot, should take required steps to increase the coverage of prepaid meters.
Compliance by APDCL:
APDCL submitted that the replacement of the stopped defective meters of all
Government departments is complete. They submitted that under RAPDRP,
17000, single phase and 2000,three phase prepaid meters have been procured
for 9 project areas and the meters are being installed with preference given to
Government departments. They also submitted that 99 number of prepaid meters
have been procured under single window platform for mobile towers.
Commission’s Comments:
The Commission has taken a note of the efforts made by APDCL for replacement
of defective meters in Government departments. However, for pre-paid meters
and replacement of other defective meters, APDCL needs to expedite the
measures fo the same. The Commission has allowed Rs. 10 Crores in this regard
in this order and APDCL should finalize the funding arrangements for this amount ,
at the earliest.
Directive 12: Voltage wise Cost of Supply and Cross Subsidy
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APDCL is directed to carry out a study to ascertain voltage-wise and consumer
category-wise cost of supply. APDCL may appoint a consultant if necessary to
carry out the study. However, APDCL fully familiarize themselves with the subject
so that they are in a position to take up such studies themselves in future. The
progress on this study shall be reported to the Commission every month.
Compliance by APDCL:
APDCL submitted that a detail study has been conducted in this regard and a
comprehensive report is being prepared which will be submitted along with the
MYT Tariff petition for the control period of 2016-19.
Commission's Comments:
APDCL should submit the complete voltage wise Cost of Supply Report along with
the detailed calculations along with the next Tariff Petition..It has to be noted that
the study should be based on proper sampling considering the representations
from different categories, circles, division(based on revenue and geographies).
APDCL should also substantiate the distribution loss levels reported at different
voltage levels.
Directive 13: Spot Billing
In order to improve the efficiency and accuracy of billing, spot billing should be
taken for the LT consumers. The prices of Handheld devices have come down
considerably and many utilities are successfully implementing these procedures.
APDCL shall initiate action in this regard and the progress in this matter may be
shared with the Commission.
Compliance by APDCL:
APDCL submitted that Discom is gradually increasing the use of Spot Billing for
billing purposes APDCL further submitted that a total of 2048 consumers are billed
using SBM as on January 31, 2015.
Commission’s Comments:
The Commission has observed that very few consumers are currently being
covered under spot billing. APDCL should increase the coverage of spot billing
facility and also should also explore additional possibilities like taking photos of
meter reading for improving spot billing efficiencies. Also, for very high value
consumers like mobile towers, automatic reading option can also be explored. The
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idea is to improve the billing efficiency and reduce losses.
Directive 14: Independent third party meter testing arrangement
APDCL is directed to establish necessary arrangements for independent .third
party meter testing. Further, APDCL should establish more number of testing
laboratories in each circle to test more number of meters, either new or defective.
Compliance by APDCL:
APDCL submitted that it has decided to set up a third party meter testing
laboratory in the premises of Jorhat Engineering College and APDCL has
submitted the action taken report In this regard to the Commission.
Commission's Comments:
The Commission has noted the compliance of APDCL.
Directive 15: Efficient meter reading billing and collection
APDCL should streamline the commercial processes to ensure timely meter
reading, billing and collection. Also, supervisory officers must counter-check the
meter readings taken by the meter readers. Further, the Licensee now shall
conduct billing through Meter Reading Instrument (MRI) for all HT consumers and
large non-domestic consumers.
The monthly meter reading of HT services shall be entrusted to a Committee of
high level officers of the APDCL..APDCL shall issue suitable instructions in this
regard immediately and the Licensee shall also review the percentage of check
readings and take action in case of variation between normal meter reading read
by meter reader and the check meter reading taken by the officers of the APDCL.
Compliance by APDCL:
APDCL submitted that all meters of HT consumers have been replaced with CMRI
compatible meters and CMRI download are taken on bi-monthly basis. Further
APDCL submitted that meter data of RAPDRP project areas which have already
gone live, are directly received in data centre and hence, CMRI downloads are not
required to be done in those areas.
APDCL has submitted the status of circle wise CMRI download.;
As per the data, that the number of consumers for whom meter data is received
directly in the data centre under RAPDRP is 4460 and CMRI data is collected and
analyzed in the HVCMS cell of APDCL and a quarterly report is prepared
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accordingly. The details of the revenue assessed and revenue realized from these
reports is submitted to the Commission.
Commission’s Comments:
The compliance of APDCL is noted. Considering the benefit of initiatives taken,
APDCL can consider extending the initiatives to some high value LT categories
also.
Directive 16: Replacement of old electromechanical meters with static
meters
A report on the status of metering, type of meters provided in HT and other high
value LT installations along with a programme for replacement of such meters with
static meters shall be submitted to the Commission by July, 2011.
Compliance by APDCL:
In compliance to directive, APDCL has submitted the status of meters replaced
under RAPDRP scheme. APDCL has replaced a total of 211856 no. of single
phase meters and 17458 no. of three phase meters have been replaced till
date.APDCL further submitted that the status on replacement of stopped /defective
meters of APDCL is reported in the SOP report.
Commission’s Comments:
APDCL is directed to take more efforts to replace more electro-mechanical meters
with Static Digital meters and the latest status report for the entire State of Assam,
including the areas not covered under R-APDRP, should be submitted to the
Commission within 3 months of issue of this order. APDCL shall also submit a
time bound plan for replacement of defective or electro-mechanical meters of
these consumers Commission within 3 months of issue of this order.
Directive 17: Management Information System
The Board is directed to take urgent steps to build a credible and accurate
database and Management Information System (MIS) to make information
available on operational and financial issues and get such data updated on
monthly basis.
Compliance by APDCL:
APDCL submitted that for areas not covered under RAPDRP, MIS reports will be
generated in the ERP system being implemented in APDCL with TCS as the
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implementation agency. The reports will be available in the ERP system post go
live of the pilot locations. The first set of pilot locations are expected to go live
within 2015
Commission's Comments:
The Compliance of APDCL is noted. APDCL should try to complete the initiative of
ERP implementation in a time bound manner.
Directive 18: Energy conservation
APDCL should take required energy conservation measures such as use of
energy efficiency lighting, high efficiency and standard make household
appliances, high efficiency pumpsets preferably with labels of Bureau of Energy
Efficiency (BEE) and other energy conservation devices. All categories of
consumers should be well apprised of the newly developed latest energy
conservation devices so that the energy conserved can be utilized for more
productive purposes and in consonance with the direction issued by the Ministry of
Power, Government of India.
Compliance by APDCL:
APDCL submitted that under the ongoing DSM program in APDCL consumer
survey is being carried out by the appointed consultants and will be completed
within January‟ 2015 and the consultant EESL is expected to give the DSM Plan
by March 2015.The details of the DSM activities for APDCL as on 31st December
2014 are shared.
Commission's Comments:
It is observed that the EESL was expected to give the DSM Plan by March 2015
but no such report has been submitted to the Commission. .APDCL is directed to
submit the DSM plan at the earliest, along with details of planning for sourcing of
funds for implementation of initiatives suggested.
The Commission has notified the Assam Electricity Regulatory Commission
(Demand Side Management) Regulations, 2011 on 10 April, 2012. The
Commission hereby directs APDCL to submit the DSM Plan formulated in
accordance with these Regulations to the Commission.
Directive 19: Consumer education and awareness
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The Commission now directs APDCL to take immediate measures for creating
consumer awareness through the print/electronic media, hold meetings at different
levels and publish the information as directed on the reverse of the electricity bills.
Compliance by APDCL:
APDCL submitted that an approximate cost of 52 lakhs has been estimated for
public awareness campaign of APDCL. APDCL has shared the details of the
budget in this regard with the Hon‟ble Commission.
Commission’s Comments:
The Commission observes that although steps were initiated by the Company,
further initiatives need to be taken. Considering this, the Commission has already
allocated special provision for consumer awareness and DSM initiatives.
Directive 20: Standards of Performance
APDCL is directed to furnish to the Commission, the reports of SoP as per the
regulations of the Commission, every quarter and in a consolidated annual report
for each financial year.
Compliance by APDCL:
APDCL submitted that the SOP reports have been submitted to AERC on
quarterly basis.
Commission’s Comments:
The submission of SoP reports is a continuous exercise and as such, APDCL is
required to submit these reports on periodical basis, as per applicable regulations.
Directive 21: Recovery of Past dues
APDCL should submit the report indicating circle-wise pending past dues of the
consumer till March 2013, and initiatives taken for recovery of such past dues.
Compliance by APDCL:
APDCL submitted that special revenue recovery drives are being held from time to
time to recover past dues. The details of the most recent revenue recovery drive
held from 16th November 2014 to 31st December 2015 are submitted to the
Commission. Further APDCL submitted that the Government of Assam has
already made payment of Rs 108 Crore, as such there is no Government
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outstanding as on 31st March 2013.
Commission’s Comments:
APDCL is further directed to do an aging analysis of arrears and submit the report
along with plan for recovery to AERC within 6 months of issue of the order.
Directive 22: Load Survey
APDCL shall undertake load survey for all Government connections/Utility officials,
on a priority basis to assess the present connected load realistically, and modify
its consumer records accordingly, in order to recover the fixed charges based on
the correct level of connected load, within six months of issue of this Order.
Compliance by APDCL:
APDCL submitted that the load survey of all Government consumers has been
completed and report has been submitted to the Commission. APDCL further
submitted that the load survey of autonomous bodies and local bodies will be
taken up and the work is expected to be completed by October 2015. Further
load survey of all consumers of APDCL is expected to be completed by June
2016.
Commission’s Comments:
The Commission has noted the compliance of APDCL.
Directive 23: Interest on Consumer’s Security Deposit
Interest on Consumers‟ Security Deposit has to be paid/adjusted in the bills of all
the consumer categories, in accordance with the EA 2003 and AERC (Electricity
Supply Code and Related Matters) Regulations, 2004 (First Amendment), 2007,
since the same is being allowed to be recovered through the ARR and tariff.
Compliance by APDCL:
APDCL submitted that the software to calculate interest on consumer security
deposits has been integrated in every billing office of APDCL and accordingly
payment are being made to the consumers in a phase wise manner.
Commission’s Comments:
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Despite the directions of the Commission, it is observed that APDCL is not paying
interest on security deposit for all consumers. Further, for FY 2015-16, they have
not projected any amount under this head. The Commission directs APDCL to
expedite the required steps to implement this directive and ensure this amount is
paid to all consumers.
Directive 24: Distribution Franchisees (IBDF Scheme)
APDCL shall submit all details of franchisee schemes, including number of
feeders, number of agencies, revenue and collection (before and after handing
over to Franchisee), rate at which power is sold to Franchisee, etc.
Compliance by APDCL:
The details of the franchisee scheme is submitted by APDCL to the Commission.
Also, APDCL has submitted the revised BST rate for older IBDF. Also,
performance report of existing franchisee is submitted.
Commission’s Comments:
The compliance of APDCL is noted. APDCL should ensure proper that monitoring
framework is in place for performance monitoring and management of these
franchisees.
Directive-25: Filing of complete Petitions within the scheduled dates
It has been observed that the Petitions are not being filed on time, and even after
filing of the Petitions, the necessary data and clarifications are not submitted on
time, leading to delays in the tariff determination process. The Commission directs
APDCL to ensure that the Petitions are filed on time, and all the necessary data
and clarifications are submitted along with the Petition itself.
Compliance by APDCL:
APDCL has noted the directive for future compliance.
Commission’s Comments:
The Commission directs APDCL to ensure compliance of this directive for the tariff
petitions of ensuing years.
Directive-26: Calculation of depreciation in accordance with the AERC Tariff
Regulations
It has been observed that APDCL does not submit the calculations of depreciation
strictly in accordance with the AERC Tariff Regulations, 2006, and claims
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depreciation on assets funded through grants and consumer contribution also.
The Commission directs APDCL to ensure that in subsequent Petitions, the
depreciation is computed strictly in accordance with the AERC Tariff Regulations,
2006.
Compliance by APDCL:
APDCL submitted that it is committed to comply with the directives.
Commission’s Comments:
The compliance of APDCL is noted.
9.3 NEW DIRECTIVES
Directive-1: Discrepancy in transmission loss in the petitions of AEGCL and
APDCL: It is directed that AEGCL and APDCL should coordinate and ensure that
such discrepancies do not occur in future filings.
Directive-2: Separate Tariff provision for 132 KV consumers:Within 3 months
of issue of this order, APDCL shall submit the details like number of consumers,
connected load and sales of such HT consumers having connected load of above
5000 kVA .
Directive-3: Monitoring of Power Procurement
APDCL should submit a quarterly report covering the plan for the ensuing quarter
and the progress of actual power procurement for the last quarter
Sd/-
(D. Chakravarty)
Member, AERC
Sd/-
(N. K. Das)
Chairperson, AERC
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10. Schedule of Tariff
This chapter lists the tariffs which are applicable in the State of Assam with effect
August 01, 2015 until replaced by another order of the Commission.
For the purpose of this schedule, the consumers are divided into two distinct
groups based on consumption and the nature of supply. The consumers are
further divided into categories that are supplied electricity at LT and HT voltages.
LT GROUP
Supply Voltage 1 Ph, 230 V AC and 3 Ph, 415 V AC
LT Category-1 Jeevan Dhara:
Applicability
This Tariff shall be applicable for supply of power to any premises exclusively for
the purpose of own requirements with a Connected Load of not more than 0.5 kW
and consumption upto 1 kWh/day or 30 kWh per month.
(a) Tariff :
Consumption Energy Charge Fixed Charge
Without Govt Subsidy
With Existing Govt Subsidy*
For consumption upto
30 kWh per month.
Rs.
4.10/kWh
Rs.
2.79/kWh
Rs. 15 per connection per
month
*The rate of Existing Govt Subsidy is the subsidy declared by Govt after the Tariff Order
dated November 21, 2014
N.B: -The above determined energy charge for LT-I Jeevan Dhara Category is
contingent on payment of subsidy as agreed by Govt of Assam. Without the
Government subsidy, the rates contained in the full cost recovery tariff schedule
shall become operative.
If, during any billing period the consumption exceeds the stipulated
1 kWh/day or 30 kWh per month the consumers will be considered as if they are
shifted to the next appropriate higher category.
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(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made in full on
or before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
LT Category –II: Domestic _A.
Applicability
This tariff shall be applicable for supply of power to consumers having connected
load below 5 kW for residential premises, exclusively for domestic purposes only.
This shall also include supply of power to occupants of flats in multi storied
buildings, if the premises have not been classified under Domestic B or HT
Domestic and receiving bulk power at single point without any individual metering
units, workshops, petrol pumps, factory & printing presses not using motive power
in the manufacturing process, private educational and cultural institutions, lodging
and boarding houses.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 7.55/kWh Rs. 115/kVA/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
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For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category - III: Public water Works
170
Applicability
This tariff is applicable for public water supply maintained by Government or
Government Corporations, Municipalities, Town Committees and Panchayats.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 6.05/kWh Rs. 125/kVA/month
For the purpose of determination of monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(c) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers
(d) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
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(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category – IV: Bulk Supply
Applicability
This tariff is applicable to Bulk consumers with a Connected Load not less than 25
kVA provided that the consumers not covered by any other category such as any
domestic connection, industries, tea, etc., and who make their own internal
distribution arrangement at their own cost and receive power at the point of supply
at high or extra high voltage. This is further classified as under:
(i) Government educational institution-like universities, engineering colleges,
medical colleges with residential facilities and
(ii) Others - categories not included in any of the above categories, including
Government offices, Railways, Military Engineering Services, etc.
(a) Tariff
(i) Bulk Government educational institutions
Energy Charge Fixed Charge
For all consumption. Rs. 6.45/kWh Rs. 110/kVA/month
(ii) Others
Energy Charge Fixed Charge
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For all consumption. Rs. 7.25/kWh Rs.145/kVA/month
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for
a group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed
@ 3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time , Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
173
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (A): HT Small Industries;
Applicability
This tariff is applicable for supply of power for industrial purposes having licence
from designated authority of appropriate Government and not covered under any
other category, for consumers with Connected Load above 25 kVA and upto 50
kVA, irrespective of location of the industry in rural area or urban area.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 5.60/kWh Rs. 40/kVA/month
For the purpose of determination of Monthly fixed charge, the Connected Load
shall be rounded up to the next higher kW if the decimal is higher than 0.5 and the
nearest lower kW if the decimal is lower than 0.5.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
174
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(d) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable): For all payments made by DD, Commission shall be
borne by the consumers.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (B)-HT-I Industries
Applicability
This tariff is applicable for supply of power to industrial consumers having licence
from designated authority of appropriate Government and not covered under any
175
other category, at a single point for industrial purposes with Contract
Demand/Connected Load above 50 kVA to 150 kVA.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 6.25/kWh Rs. 100/kVA/month
TOD tariff
Time of Day (TOD) tariff for HT-I industries
Description Energy charge
Time Rs./kWh
0600 hrs to 1700 hrs (normal) 6.25
1700-2200 hrs (peak) 8.50
2200-0600 hrs (night ) 5.60
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
176
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable): For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category V (C): HT-II Industries
Applicability
177
This tariff is applicable for supply of power at a single point for industrial
purposes having licence from designated authority of appropriate Government
and not covered under any other category, for Contract Demand/Connected
Load above 150 kVA.
(a) Tariff
Energy Charge Fixed Charge
Option -1. Rs. 6.85/kWh Rs. 140/kVA/month
Option -2 Rs. 6.00/kWh Rs. 270/kVA/month
A consumer may opt for any one option depending on his requirements by prior
intimation to concerned billing unit of Discom. A consumer may change his option
only after six months of availing that particular option.
TOD tariff for Option-1 above (only), no TOD Tariff will be applicable for
consumers opted for option-2. However, supplier may impose peak hour
restriction due to system constraints.
T.O.D tariff for HT-II industries
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 6.85
1700-2200 hrs (peak) 8.30
2200-0600 hrs (night) 6.35
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
178
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option are not made by the
consumer within the stipulated time, 100% of the Connected Load
converted to kVA shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) The Tariff does not include any tax or duty etc. on Electrical Energy that
179
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VI-Tea, Coffee and Rubber: Seasonal
Applicability
This tariff is applicable for tea, coffee and rubber plantation/production by
utilisation of electrical power in factory, irrigation, lighting etc. in the Estate.
(a) Tariff
(i) Seasonal Tariff (April to November)
Energy Charge Fixed Charge
For all consumption. Rs. 6.75/kWh Rs. 230/kVA/month
TOD tariff applicable
T.O.D tariff for Tea, Coffee & Rubber
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 6.75
1700-2200 hrs (peak) 8.55
2200-0600 hrs (night) 6.50
Off- Season Tariff (December to March)
Off-Season energy charge for Tea, Coffee and Rubber is Rs. 6.75 / kWh.
Consumer under this category shall have the option to select any continuous
maximum 4 (four) months period between September to March in lieu of normal
off-season period of December to March. Such option must be exercised on or
180
before 31st August of every year.
Off-Season fixed charge for Tea, Coffee & Rubber minimum 40% of contracted
demand during season period.
No benefit of ToD tariffs can be availed by consumers if they opt for the off season
tariff option during off-season period.
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing additional
energy consumption on account of transformer loss computed @ 3% on the
consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Contract Demand: The Contract Demand shall be between 65% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand. Contract Demand for off-season shall be
minimum 40% of the seasonal Contract Demand.
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(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) In the event that it is not possible to measure availability to a particular
consumer, Fixed Charge @ Rs.230/kVA will be applicable.
(i) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VII - Oil and Coal
Applicability
This tariff shall be applicable for supply of power to consumers at a single point for
installations of Oil and Coal Sector.
(a) Tariff
182
Energy Charge Fixed Charge
For all consumption. Rs 7.35/kWh Rs. 270/kVA/month
(i) T.O.D Tariff
T.O.D tariff for Oil & Coal
Description Energy charge
Time Rs./kWh
0600-1700 hrs (normal) 7.35
1700-2200 hrs (peak) 9.10
2200-0600 hrs (night) 7.10
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and related matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing additional
energy consumption on account of transformer loss computed @ 3% on the
consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
183
(c) Contract Demand: The Contract Demand shall be between 70% to 105%
as declared by the consumer of the Connected Load converted to kVA at
0.85 power factor. In case declaration /option is not made by the consumer
within the stipulated time, 100% of the Connected Load converted to kVA
shall be the contracted demand.
(d) Billable Demand: Billing demand shall be 100% of Contracted Demand or
Recorded Demand, whichever is higher. In case the meter remains
defective in a month, billing demand shall be considered as per clause
4.2.2.4 of AERC (Supply Code and Related Matters) Regulations, 2004, as
amended from time to time, Procedure for Assessment of Consumption in
case of incorrect or stopped meter for seasonal consumer.
(e) Overdrawal Penalty: If the Recorded Demand is higher than the
Contracted Demand in a month, then fixed charge based on Contracted
Demand shall be levied at three times the normal rate for the portion of
demand exceeding the Contracted Demand.
(f) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(g) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(h) In the event that it is not possible to measure availability to a particular
consumer, Fixed Charge @ Rs.270/kVA will be applicable.
(i) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category VIII: HT Irrigation
Applicability
This tariff shall be applicable for electricity supply for agriculture / irrigation
purpose in the agricultural sector for pump set above 7.5 HP and for whom power
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has been supplied at 11 kV or above.
(a) Tariff
Energy Charge Fixed Charge
For all consumption. Rs. 5.85/kWh Rs. 40/kVA/month
For supply at voltages higher than as applicable to the consumers as per
Regulation 2.2 of the AERC (Electricity Supply Code and Related Matters)
Regulations, 2004, as amended from time to time, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage.
In case, metering is done on the L.T. side of the distribution transformer, for a
group of consumers receiving power, then for the purpose of billing an
additional energy consumption on account of transformer loss computed @
3% on the consumer‟s Energy Charges shall be added.
(b) Power factor penalty and rebate:
(a) Power factor penalty: In case average power factor in a month for a
consumer falls below 85%, a penalty @1% for every 1% fall in
power factor from 85% to 60%; plus 2% for every 1% fall below
60% to 30% upto and including 30% shall be levied on total unit
consumption. Power factor penalty shall be levied on those
consumers where power factor is recorded electronically.
(b) Power factor rebate: In case average power factor as maintained
by the consumer is more than 85%, a rebate of 1% and if power
factor is above 95%, a rebate of 2% on unit consumption shall be
applicable. Power factor rebate shall be allowed on those
consumers where power factor is recorded electronically.
(c) Surcharge for delayed payment: Surcharge @ 1.5% per month or part
thereof at simple interest shall be levied, if payment is not made on or
before the due date.
(d) Payments shall be made by cash/local cheque/DD/Electronic Transfer
(where applicable):For all payments made by DD, Commission shall be
borne by the consumers.
(e) The Tariff does not include any tax or duty etc. on Electrical Energy that
may be payable at any time in accordance with any law /State Government
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Rule in force. Such charges, if any, shall be payable by the consumers in
addition to tariff charge.
HT Category IX: Temporary Supply:
Applicability
This Tariff will be applicable for electric supply of power at HT which is temporary
in nature for a period not exceeding one month.
In case of Domestic category of consumers, the higher rating of only one
equipment shall be considered for determination of connected load if both
Geyser and Air-Conditioner (without heater) are installed and used for
domestic purpose only.
These Tariffs take effect from August 1, 2015.
This Tariff Order shall continue to be applicable until it is replaced by
another Order passed by the Commission.
This Tariff Order is signed by the Assam Electricity Regulatory
Commission on July 24, 2015.
Sd/-
(D. Chakravarty) Member, AERC
Sd/-
(N. K. Das) Chairperson, AERC
Charges
Rs. 145/kVA/day or Rs. 8.50/kWh whichever is higher
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Annexure-1
Minutes of the 19th meeting of the State Advisory Committee
held on 8th May, 2015, at Administrative Stuff College Khanapara, Guwahati
The 19th meeting of the State Advisory Committee was held at 10.30 am on 8th May, 2015, at Administrative Stuff College Khanapara, Guwahati.
The list of members and officers present is appended at Appendix – 1.
At the very outset, the Secretary, AERC, welcomed all the Members of the State Advisory Committee, Special Invitees and officers present, to the 19th Meeting of the Committee, which had been recently reconstituted vide circular dated 20.04.2015as per Section 87 of The Electricity Act, 2003. He stated that the State Advisory Committee is an important body with an objective to advise the Commission on important issues such as:
Major questions of policy;
Matters relating to quality, continuity and extent of service provided by the licensees;
Compliance by Licensees with the conditions and requirements of their licence;
Protection of Consumer Interest; and
Electricity supply and overall Standards of Performance by utilities.
He then requested the Chairperson, AERC, Shri Naba Kumar Das, IAS (Retd.) to preside over the meeting.
The Chairperson, AERC, on behalf of the Commission, extended a hearty welcome to all the Members of the State Advisory Committee.
The Chairperson informed the members that Power Point presentations would be made by the representatives of the power utilities on the overall power scenario of the State and also on the petitions submitted by each of the three utilities for revision of tariff. He requested the members to take this opportunity to raise various issues and problems being faced by the consumers and offer suggestions so that effective strategies could be worked out to improve the power position in the State. The agenda items were taken up for discussions in seriatim which are briefly recorded below.
1. Agenda No. 1: Confirmation of the Minutes of the 18th meeting of the State Advisory Committee (SAC) held on 12-08-2014
The Minutes of the 18th Meeting of the Committee was already circulated among the Members and Special Invitees. Hence, it was taken as read. No comment was received on the Minutes. With the approval of the members, the Minutes of the 18th meeting of the SAC were confirmed.
2. Agenda No. 2: Action taken on the Minutes of the 18th Meeting of SAC.
The action taken report was submitted to the members, which are summarized as below.
2.1. Peak power Tariff in consumer categories is not presently covered under the TOD Tariff. The Commission had advised APDCL to submit the required information. On receipt of the same the Commission would be in a position to take a decision.
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2.2. Regarding the Regulation of Peak Power Management it was informed that the Commission have issued the AERC DSM (Demand Supply Management) Regulations, 2012. Commission now will be take up framing the peak power Regulations.
2.3. It was appraised that the two Regulations ofAERC viz. (I) Co-generation and Generation of Electricity from Renewable Sources of Energy and (II) AERC Grid Interactive Solar PV systems have been finalized and have been sent for publication in the Assam Gazette.
2.4. The amendments to AERC (Terms & Conditions for Determination of Tariff)
Regulations, 2006 were notified in the Assam Gazette on 06.01.2015.
2.5. Chairperson, AERC requested Mr. K.V Eapen Chairman (APDCL, AEGCL and APGCL) to present a brief about the Power Availability Scenario up to the year 2019. Who shared the following stated below:
Plant Name
Maximum Availability (MW)
Date Of Commissioning
OTPC Palatana(Unit I)
120
January 2014
Farakka super Thermal Power Station
75
September 2014 to August 2016
OTPC Palatana (Merchant Power)
35 (Merchant power)
Agreement made
Damodar Valley Corporation
75
May 2015 to July 2015
Nikachhu hydro Power station
118
July 2019
TOTAL 423
3. Agenda No. 2: Present power scenario of the State.
A presentation was made by Mr M.K Adhikari GM, (APDCL) on Present power scenario of the State of Assam.
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4.1. During the presentation Mr. Bimal Phukan desired to know about the methodology
of calculation of demand by APDCL .APDCL appraised that physical demand
recorded in the system is considered to calculate demand. Mr. Bimal Phukan
objected to the same stating that during summer months (4-5months) load
shedding occurs across the state therefore the system will not record the actual
demand. APDCL confirmed that they consider substation wise recorded data for
those days of the month when no load shedding was carried out. However, Mr.
Phukan not being satisfied with the reply mentioned that the demand data is a
suppressed demand data and he apprehended that if this demand is considered
by Central Government for allocation of power then Assam will get lower allocation
of power than actual requirement.
4.2. Mr. Anup Gogoi mentioned that per capita per month consumption of Assam is
very low compared to other states of India. He opined that this may be due to the
demand reflected is not the actual demand .Actual demand may be 3000 MW as
compared to assessed demand of 1100 to 1450 MW.
4.3. Chairperson AERC mentioned that per capita consumption appears to be very
low; there is a need to analyze/ asses the actual requirement to meet demand.
4.4. Mr. Nitin Sabikhi Manager, IEX enquired about the base load of the system,
APDCL replied that the base load of the system is minimum of 600 MW
throughout the day and 750 to 800 MW during day time.
4.5. Mr Bimal Phukan desired to know about the methodology for allocation of CSGS
power. APDCL replied that Gadgil-Mukherjeeformula is used for allocation of both
hydro as well as thermal power.
The new revised Gadgil-Mukherjee formula as approved by National Development
Council (NDC) is given in the following table. Criteria for inter-state allocation of
Plan Assistance
Criteria Weight (%)
Population 55
Per capita Income 25
Fiscal Management 5
Special Problems 15
Total 100
He further enquired about the availability of Meghalaya power and the cost.
APDCL replied that Meghalaya power is available since 1988 at a rate mutually
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decided. Presently, in some areas of Mankachar and Goalpara District of Assam
power from Meghalaya is received at 11KV level.
4.6. Mr. Bimal Phukan asked about Commissioning date of Lakwa Thermal Power
Station (LTPS) and also desired to know about the projects those came up after
1978.Mr. KV Eapen replied that LTPS was Commissioned in 1978. Mr.P.
Bujarbaruah, MD (APGCL) replied that presently Namrup Replacement power
Plant (NRPP) and Lakua Replacement Power Plant (LRPP) are under
implementation.
4.7. Mr. Anup Gogoi desired to know about the present power prices in the exchange.
Mr. Nitin Sabikhi, Manager IEX replied that for the last six months exchange prices
are very low, the RTC price was `2.5 /unit and night price was less than ` 2 /Unit
for North East Region. With the present trend of growth in Generation capacity
(8to 9%) versus growth in Demand (4%). It is expected that there will be surplus
scenario in next few years and exchange prices likely to fall further.
He opined that Assam may think of replacing purchase of costlier power
with exchange power, which may lead to saving of substantial amount of power
purchase cost. He informed that States such as Haryana, Punjab Rajasthan are
already using the method of replacing costly power with cheap power from the
Exchange.
4.8. Mr. Abjijit Barooah desired to know about the internal system of APDCL to take
quick commercial decision on power purchase. Mr.KV Eapen replied that
Commercial department of APDCL is responsible for handling power purchase.
Mr. Adhikari GM (TRC), APDCL highlighted that on a daily basis (block wise)
demand supply position is assessed and decision taken regarding the power
purchase. At present APDCL meets 80% of demand from firm allocation
/Contracted supply, 5 to 10% from exchange and 5% through deviation settlement
mechanism.
5. Agenda No. 4: Tariff Proposals for FY 2015-16
Mr.SM Kalita CGM (F & A), APGCL made a presentation on APGCL Tariff Proposals for FY 2015-16.
5.1. Mr. Bimal phukan Member SAC enquired as to whether there was any break down
of the generating stations. APGCL replied that the details break down have been
submitted.
5.2. Mr. phukan further pointed out that the proposed Generation Tariff at ` 4.92 is
higher compared to the exchange price of under ` 4.00. He requested APGCL to
review this issue.
5.3. It was suggested that the long-term viability of the small gas based projects be
reviewed as a cluster of small projects may result in high O &M expenses.
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5.4. Mr. Abhijit Barooah mentioned that the average auxiliary consumption of the
stations are very high. APGCL appraised that there are three main reasons of high
auxiliary consumption
a) Because of low availability of gas machines are run on low load (40-
50%) condition. Though, some of the Auxiliary Units need to be run all
the time irrespective of loading resulting in higher auxiliary
consumption.
b) Being old the Station Heat Rates are high for the existing stations.
Besides, use of low CV gas compared to design there is requirement of
higher volume of gas which results in higher auxiliary consumption.
6. Mr. S.K. Saha CGM (F & A) AEGCL made a presentation on AEGCL Tariff Proposals for FY 2015-16.
6.1. Mr. Bimal phukan enquired about the capacity that can be handled by
AEGCL.AEGCL replied that an average of 716 MW and 806 MW were handled
during 2013-14 and 2014-15 respectively.
6.2. Mr. Nitin Sabikhi Manager IEX desired to know about the Import capacity of
AEGCL. AEGCL replied that the import capacity is 1100 MW.
7. Mr. Manoj Adhikari GM, APDCL made a presentation on APDCL Tariff Proposals for FY 2015-16.
7.1. Mr. Abhijit Barooah opined that a provision should be there to penalize the utility
for not meeting the norms set in Regulations. He further mentioned that with the
present status of revenue gap there is a need for Government to provide a
onetime fund to bring a clean slate. He enquired about the methodology of fixing
the Tariff for different categories of customers. APDCL replied that Tariff for
different categories of customers is proposed keeping in mind the guidelines of
National Tariff Policy to maintain the cross subsidy level within ± 20%.
7.2. Mr. Bimal phukan suggested that the buying and selling of power through the
exchange be carried out in a prudent manner so that the maximum benefit can be
derived out of the process. Should the need arise; personnel can be specially
trained for the purpose.
8. Agenda No. 5: Draft AERC ( Terms & Conditions for Determination of Multi Year
Tariff) Regulations, 2015
8.1. A brief presentation was made by Mr. Amit Goenka (Deloitte Touche Tohmatsu
India Pvt. Ltd.) on Multi Year Tariff Regulation. Mr. Saurabh Agarwal enquired
about the mechanism of sharing of Gain/loss in the regulations. It was replied that
the Mechanism proposed is as per model FOR Regulations. Mr. Saurabh Agarwal
further enquired as to why the incentive structure has been changed (Earlier 25
paisa which becomes 50 paisa w.e.f 1st April 2016). Mr. Amit Goenka (Deloitte
Touche Tohmatsu India Pvt. Ltd) clarified that it totally depends upon the new
Regulation. Mr. Agarwal enquired as to why AT & C Loss is not kept as an
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Efficiency Parameter. Mr. Goenka replied that as there is ambiguity in formula for
AT & C loss, distribution loss is kept as one of the efficiency parameters.