BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION GANDHINAGAR CASE NO. __________ Filing of the Petition for True Up of FY 2016-17 & Determination of Tariff for FY 2018-19 Under GERC (Multi Year Tariff) Regulations, 2016 along with other Guidelines and Directions issued by the GERC from time to time AND under Part VII (Section 61 to Section 64) of the Electricity Act, 2003 read with the relevant Guidelines Filed by:- Paschim Gujarat Vij Company Ltd. Corp. Office: "Paschim Gujarat Vij Seva Sadan", Off. Nana Mava Main Road, Laxminagar, Rajkot - 360004 “ave EŶergy for BeŶefit of “elf aŶd NatioŶ
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BEFORE THE GUJARAT ELECTRICITY REGULATORY … · 2019. 10. 10. · Ho [ le Coissio v o v 3rd December, 2016. In respect to the above Petition, the MYT Ode Áas issued the Ho [ le
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BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION
GANDHINAGAR
CASE NO. __________
Filing of the Petition for True Up of FY 2016-17
&
Determination of Tariff for FY 2018-19
Under
GERC (Multi Year Tariff) Regulations, 2016 along with other Guidelines and
Directions issued by the GERC from time to time AND under Part VII (Section 61
to Section 64) of the Electricity Act, 2003 read with the relevant Guidelines
Filed by:-
Paschim Gujarat Vij Company Ltd.
Corp. Office: "Paschim Gujarat Vij Seva Sadan", Off. Nana Mava Main Road, Laxminagar,
Rajkot - 360004
“ave E ergy for Be efit of “elf a d Natio
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 1
BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION
GANDHINAGAR
Filing No:
Case No:
IN THE MATTER OF Filing of the Petition for True Up of FY 2016-17 and
Determination of Tariff for FY 2018-19 under GERC (Multi Year
Tariff) Regulations, 2016 along with other Guidelines and
Directions` issued by the GERC from time to time AND under Part
VII (Section 61 to Section 64) of the Electricity Act, 2003 read
with the relevant Guidelines
AND
IN THE MATTER OF Paschim Gujarat Vij Company Limited,
"Paschim Gujarat Vij Seva Sadan"
Off. Nana Mava Main Road, Laxminagar,
Rajkot - 360004
PETITIONER
Gujarat Urja Vikas Nigam Limited
Sardar Patel Vidyut Bhavan,
Race Course,
Vadodara - 390 007
CO-PETITIONER
THE PETITIONER ABOVE NAMED RESPECTFULLY SUBMITS
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
TABLE 33 : NET GAIN/ (LOSS) FOR FY 2016-17.................................................................................... 31
TABLE 34 : REVENUE FOR FY 2016-17 ................................................................................................ 31
TABLE 35 : REVENUE GAP FOR FY 2016-17 ......................................................................................... 32
TABLE 36 : APPROVED ARR FOR FY 2018-19 ...................................................................................... 33
TABLE 37: APPROVED SALES (MUS) FOR FY 2018-19 ........................................................................... 34
TABLE 38: REVENUE AT EXISTING TARIFF FOR FY 2018-19...................................................................... 34
TABLE 39: FPPPA CHARGES FOR THE FY 2018-19 ................................................................................ 35
TABLE 40: REVENUE FROM FPPPA CHARGES FOR THE FY 2018-19 .......................................................... 35
TABLE 41: OTHER CONSUMER RELATED INCOME FOR FY 2018-19 ........................................................... 35
TABLE 42: AGRICULTURE SUBSIDY FOR FY 2018-19 .............................................................................. 36
TABLE 43: TOTAL REVENUE AT EXISTING TARIFF FOR FY 2018-19 ............................................................. 36
TABLE 44: ESTIMATED REVENUE GAP FOR FY 2018-19 AT EXISTING TARIFF ............................................... 36
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 5
ABBREVIATIONS
ARR Aggregate Revenue Requirement
DGVCL Dakshin Gujarat Vij Company Limited
FPPPA Fuel and Power Purchase Price Adjustment
FY Financial Year
GEB Erstwhile Gujarat Electricity Board
GERC Gujarat Electricity Regulatory Commission
GERC MYT Regulations,
2016 GERC (Multi Year Tariff) Regulations, 2016
GETCO Gujarat Energy Transmission Corporation Limited
GoG Government of Gujarat
GoI Government of India
GSECL Gujarat State Electricity Corporation Limited
GUVNL Gujarat Urja Vikas Nigam Limited
kV Kilo Volt
kVA Kilo Volt Ampere
kVAh Kilo Volt Ampere Hour
kWh Kilo Watt Hour
MGVCL Madhya Gujarat Vij Company Limited
MU Million Units (Million kWh)
MVA Mega Volt Ampere
MW Mega Watt
MYT Multi Year Tariff
MYT Control Period FY 2016-17, FY 2017-18, FY 2018-19, FY 2019-20 & FY 2020-21
O&M Operation & Maintenance
PGVCL Paschim Gujarat Vij Company Limited
UGVCL Uttar Gujarat Vij Company Limited
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 6
SECTION 1. INTRODUCTION
1.1. PREAMBLE
1.1.1. This section presents the background and reasons for filing this Petition.
1.2. INTRODUCTION
1.2.1 The Go e e t of Guja at he ei afte efe ed to as GoG otified the Guja at Electricity Industry (Reorganization and Regulation) Act 2003 (herein after called as
A t i Ma fo the eo ga izatio of the e ti e po e se to i the “tate of Gujarat.
1.2.2 Pursuant to the above, Government of Gujarat in their letter vide GO / 19th August,
2003 had directed GEB to form four Distribution Companies (Discoms) based on
geographical location of the circles. Accordingly the four distribution companies had
been incorporated with the Registrar of Companies (RoC) on 15th September, 2003.
Paschim Gujarat Vij Company Limited (PGVCL) is one of the distribution companies
engaged in distribution of electricity in the southern zone area of Gujarat.
1.2.3 The Paschim Gujarat Vij Co. Ltd. obtained its Certificate of Commencement of
Business on the 15th October, 2003. However, the company did not commence its
commercial operations during the financial year ending 31st March, 2005. The
Company has started its commercial function w.e.f. 1st April, 2005.
1.2.4 The Guja at Ele t i it ‘egulato Co issio he ei afte efe ed to as GE‘C o the Ho le Co issio , a i depe de t statuto od o stituted u de the
provisions of the Electricity Regulatory Commissions (ERC) Act, 1998 and is currently
under purview of the Electricity Act, 2003. GERC is vested with the authority of
regulating the power sector in the State inter alia including determination of Tariff for
electricity consumers.
1.2.5 Ho le Co issio otified the Guja at Ele t i it ‘egulato Co issio Multi-Yea Ta iff ‘egulatio s, GE‘C MYT ‘egulatio s, o th March 2016
and shall be applicable for determination of tariff in all cases covered under the
regulations from 1st April, 2016 onwards.
1.2.6 Under section 62 of the Electricity Act, 2003 and under the GERC MYT Regulations,
2016, DGVCL had filed its Annual Revenue Requirement for the Third Control Period
(FY 2016-17 to FY 2020-21) and Determination of Tariff for the FY 2017-18 to the
Ho le Co issio o 3rd December, 2016. In respect to the above Petition, the MYT
O de as issued the Ho le Co issio o 31st March 2017. In the above Order,
the Ho le Co issio had also app o ed the A‘‘ fo all the ea s of the Third
Control Period i.e. FY 2016-17 to FY 2020-21.
1.2.7 As per the provisions stipulated in Regulation 28.8 of the GERC MYT Regulations,
2016, licensees were required to file the Petition for approval of truing up of previous
year (i.e. FY 2016-17) and tariff for ensuing financial year (i.e. FY 2018-19) by 30th
November of the current financial year (FY 2017-18). Revenue gap for the ensuing
year (FY 2018-19) is calculated based on ARR approved in the MYT Order and Tariff
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 7
Schedule for FY 2017-18 as approved in Order (Case No. 1624 of 2016) which was
passed on 31st March, 2017.
1.3. GERC MYT REGULATIONS, 2016
1.3.1 Under section 62 of the Electricity Act, 2003 and under the GERC MYT Regulation,
2016 along with other guidelines and directions issued by the GERC from time to time,
PGVCL is required to file a Petition for Truing-Up for FY 2016-17 and Determination of
Tariff for FY 2018-19 to the Ho le Co issio . The elevant extracts of the MYT
Regulations, 2016 are given in the following paragraphs.
Section - 3.1 of MYT Regulations, 2016:
. The Commission shall determine tariff within the Multi-Year Tariff
framework, for all matters for which the Commission has jurisdiction under the
Act, including in the following cases:
(i) Supply of electricity by a Generating Company to a Distribution Licensee;
………………………
(ii) Intra-State transmission of electricity;
(iii) SLDC Fees and Charges;
(iv) Intra-State Wheeling of electricity;
(v) Retail supply of electricity.” Emphasis Added
Section 17 of the GERC MYT Regulations, 2016:
17.2 The filing for the Control Period under these Regulations shall be as under:
a) MYT Petition shall comprise of:
…………
b) From the second year of the Control Period and onwards, the Petition
shall comprise of:
i. Truing Up for FY 2016-17 and onwards to be carried out under Gujarat
2.3.2. The approved sales for FY 2018-19 as per the MYT Order issued the Ho le Commission on 31st March, 2017 is 24,991 MUs.
2.3.3. Based on approved sales & existing retail tariff, revenue from sale of power works out
to Rs. 9,389.20 Crore for FY 2018-19.
2.3.4. The Revenue from FPPPA charges for FY 2018-19 has been projected considering the
base rate of 149 paise per unit as Rs. 3,723.70 Crore.
2.3.5. The i o e u de the head Othe Co su e ‘elated I o e a d Ag i ultu e su sid for FY 2018-19 has been considered same as app o ed the Ho le Co issio i MYT Order dated 31st March, 2017.
2.3.6. Based on the above projections, the total revenue of the company comprises of
revenue from sale of power at existing tariff, FPPPA charges, other consumer related
income and Agriculture Subsidy. Total revenue for FY 2018-19 is as shown below:
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 12
Table 5 : Total Revenue at Existing Tariff for FY 2018-19
Sr. No. ParticularsFY 2018-19
(Projected)
1 Revenue with Existing Tariff 9,389.20
2 FPPPA Charges @ 149 paisa/kWh 3,723.70
3 Other Income (Consumer related) 470.98
4 Agriculture Subsidy 440.53
5 Total Revenue including subsidy (1 to 4) 14,024.42
2.3.7. The revenue gap of Rs. 494.07 crores after true up exercise of FY 2016-17 is also
considered for estimating revenue gap/(surplus) for FY 2018-19.
2.3.8. Based on the above, the estimated revenue gap/ (surplus) for FY 2018-19 at existing
tariff is as outlined in the table below:
Table 6: Estimated Revenue Gap/ (Surplus) for FY 2018-19 at Existing Tariff
Rs in Crores
Sr. No. ParticularsFY 2018-19
(Projected)
1 Aggregate Revenue Requirement 14,103.87
2 Revenue Gap from True up of FY 2016-17 494.07
3 Total Aggregate Revenue Requirement (1 to 2) 14,597.93
4 Revenue with Existing Tariff 9,389.20
5 FPPPA Charges @ 149 paisa/kWh 3,723.70
6 Other Income (Consumer related) 470.98
7 Agriculture Subsidy 440.53
8 Total Revenue including subsidy (4 to 7) 14,024.42
9 Gap / (Surplus) (3 - 8) 573.52
2.4. TARIFF PROPOSAL
2.4.1. The consolidated revenue gap for all four distribution companies is Rs. 1374 Crores.
Out of above gap, Rs. 1195.72 Crores is on account of less receipt of subsidy for the FY
2016-17 which was to be received in advance. However, now State Government has
committed to release the outstanding subsidy of Rs. 1195.72 Crores during current
financial year through Revised Budget Estimation of current year. Accordingly, the
remaining gap of Rs. 178 Crores is proposed to be met through efficiency improvement
easu es o as dee ed app op iate the Ho le Commission.
2.4.2. In view of the above, while the distribution companies have not proposed any increase
in tariff rates, certain minor modifications have been proposed in current tariff
structure. The proposed changes are outlined in the subsequent paragraphs.
2.4.3. Proposed changes in the tariff structure:
A. Meter rent to be merged with Fixed / Demand Charges:
To address the issue of applicability of multiple taxes such as Electricity Duty and GST
on different component of electricity bill like energy charge, fixed charge, meter
charge etc., it is proposed to merge meter charges into fixed charge so that only one
tax i.e. Electricity Duty is applicable.
B. Change in condition for opting LTMD by NRGP:
Existing Provision
This tariff shall also be applicable to consumer covered in category – ‘ate: No -‘GP
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 13
so opts to e harged i pla e of ‘ate: No -‘GP tariff.
Proposed Provision
This tariff shall also be applicable to consumer having contracted load of 15 kW and
above covered in category – ‘ate: No -‘GP so opts to e harged i pla e of ‘ate: Non-‘GP tariff.
C. Change in condition for switch over from Non-RGP to Non-RGP Night:
Existing Provision
NOTE
7. The option can be exercised to switch over from Non-RGP tariff to Non-RGP Night
tariff and vice versa twice in a ale dar ear gi i g ot less tha o e o th s notice in writing.
Proposed Provision
NOTE
7. The option can be exercised to switch over from Non-RGP tariff to Non-RGP Night
tariff or vice versa twice in a calendar year by giving not less than one month s oti e in writing.
D. Change in condition for switch over from LTMD tariff to LTMD – Night tariff:
Existing Provision
NOTE
7. The option can be exercised to switch over from LTMD tariff to LTMD Night tariff
and vice versa twice in a calendar year by gi i g ot less tha o e o th s oti e i writing.
Proposed Provision
NOTE
7. The option can be exercised to switch over from LTMD tariff to LTMD Night tariff or
i e ersa t i e i a ale dar ear gi i g ot less tha o e o th s oti e i writing.
E. Change in condition for switch over from HTP-I tariff to HTP-IV tariff:
Existing Provision
NOTE
7. The option can be exercised to switch over from HTP-I tariff to HTP-IV tariff and
i e ersa t i e i a ale dar ear gi i g ot less tha o e o th s otice in
writing.
Proposed Provision
NOTE
7. The option can be exercised to switch over from HTP-I tariff to HTP-IV tariff or vice
ersa t i e i a ale dar ear gi i g ot less tha o e o th s oti e i riti g.
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 14
SECTION 3. TRUE UP FOR FY 2016-17
3.1. PREAMBLE
3.1.1. This section outlines the performance of PGVCL for FY 2016-17. In line with the
provisions of the GERC MYT Regulations, 2016, PGVCL hereby submits the True-Up
Petition comparing the actual performance of PGVCL during FY 2016-17 with the final
ARR for FY 2016-17 as app o ed the Ho le Co issio ide its MYT Order (Case
No. 1624 of 2016) which was passed on 31st March, 2017.
3.2. PRINCIPLES FOR TRUE-UP FOR FY 2016-17
3.2.1. As per GERC MYT Regulations, 2016, the Ho le Co issio is e ui ed to u de take the True-Up of the licensees for FY 2016-17 based on the comparison of the actual
performance of the past year with the approved estimates for such year. Section 21.3
of the GERC MYT Regulations, 2016 is read as below:
21.3 The scope of the truing up shall be a comparison of the performance of
the Generating Company or Transmission Licensee or SLDC or
Distribution Licensee with the approved forecast of Aggregate Revenue
Requirement and expected revenue from tariff and charges and shall
comprise of the following:
(a) a comparison of the audited performance of the Applicant for the
previous financial year with the approved forecast for such previous
financial year, subject to the prudence check;
(b) Review of compliance with directives issued by the Commission from
time to time;
(c) Other relevant details, if any
3.2.2. In line with the provisions of GERC MYT Regulations, 2016, PGVCL has filed this
Petition for True-Up for the year FY 2016-17. Information provided in the True-Up for
FY 2016-17 is based on audited actual performance and considering principles
adopted the Ho le Co issio i its p e ious O de s. The a tual pe fo a e has been compared with the approved numbers for FY 2016-17 as per the GERC MYT
Order dated 31st March, 2017.
3.2.3. Further, for the purpose of True-Up, all the expense heads have been categorized into
either Controllable or Uncontrollable factors. A head-wise comparison has been made
et ee the alues app o ed the Ho le Co issio a d the a tual alues fo various expenditures for FY 2016-17.
3.2.4. Accordingly, actual data for revised Aggregate Revenue Requirement, revenue and
gap for FY 2016-17 are outlined in the subsequent paragraphs of this chapter.
3.3. CATEGORY WISE SALES
3.3.1. The actual category wise sales for FY 2016-17 were 22,682 MUs as against the
approved sales of 22,395 MUs. The table below highlights the comparison of actual
category wise sales of PGVCL agai st that app o ed the Ho le Co issio :
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 15
Table 7 : Category-wise Sales
FY 2016-17
(Approved)
FY 2016-17
(Actual)
A LT Consumers
1 RGP 3,742 3,492
2 GLP 113 113
3 Non-RGP & LTMD 3,149 3,227
4 Public Water Works 676 698
5 Agriculture - Unmetered 4,437 4,486
6 Agriculture - Metered 2,959 2,410
7 Street Light 99 97
LT Total (A) 15,174 14,523
B HT Consumers
8 Industrial HT 7,221 8,159
9 Railways - -
HT Total (B) 7,221 8,159
Grand Total (A + B) 22,395 22,682
S.No. Particulars
Sales (MUs)
3.4. DISTRIBUTION LOSSES
3.4.1. In FY 2016-17, the actual distribution losses were 20.86% as against the approved
level of 22.00%. The table below highlights the comparison of actual distribution
losses of PGVCL agai st that app o ed the Ho le Co issio :
Table 8 : Distribution Losses
ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Distribution Loss 22.00% 20.86%
3.4.2. The MYT Regulations categorise the Distribution Losses as a controllable factor and
accordingly any gain or loss on account of this would be shared with the consumers as
per the provisions of the Regulations.
3.4.3. PGVCL submits that it has achieved a significant reduction in distribution losses during
recent years. In FY 2014-15, the losses were at the level of 24.61% which were
reduced to 20.86% in FY 2016-17. The Ho le Co ission had approved the
distribution loss levels for PGVCL at 22.00% for FY 2016-17. PGVCL has surpassed the
approved level of losses, considering the area specific constraints, it is would be
challenging even to maintain the losses at existing levels. However, PGVCL shall still
continue its efforts to lower distribution losses further.
3.4.4. Since PGVCL has losses lo e tha those app o ed the Ho le Co issio , its effect has been discussed in the section relating to power purchase and the gains and
losses has been captured there itself.
3.5. ENERGY REQUIREMENT AND ENERGY BALANCE
3.5.1. The gross energy requirement of PGVCL is as follows given in the table below:
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 16
Table 9 : Energy Requirement and Energy Balance
S.No. Particulars UnitFY 2016-17
(Approved)
FY 2016-17
(Actual)
1 Energy Sales MUs 22,395 22,682
MUs 6,316 5,978
% 22.00% 20.86%
3 Energy Requirement MUs 28,711 28,660
4 Transmission Losses MUs 1,150 1,151
5Total Energy to be input to
Transmission SystemMUs 29,861 29,811
6 Pooled Losses in PGCIL System MUs 530 503
7 Total Energy Requirement MUs 30,391 30,315
2 Distribution Losses
3.5.2. The gross energy requirement for subsequent sale to the consumers in FY 2016-17 is
30,315 MUs as compared to 30,391 MUs as app o ed the Ho le Co issio .
3.6. POWER PURCHASE COST
3.6.1. The company has been currently allocated share of generation capacities as per the
scheme worked out by GUVNL. In order to minimize power purchase cost, GUVNL
adopts the Merit Order Despatch principles for despatching power from the
generating stations based on the demand and accordingly power gets allocated to
PGVCL.
3.6.2. The actual power purchase from GUVNL is different from allocation because the
demand from PGVCL is not constant and it varies from time to time.
3.6.3. The total power purchase cost of PGVCL for FY 2016-17 consists of the basic power
purchase cost, transmission charges payable to GETCO and PGCIL, SLDC charges and
the Dis o s sha e of GUVNL ost. Based o the sa e, the o pa iso of the
approved and the actual cost of power purchase are as shown below:
Table 10 : Net Power Purchase Cost
Rs in Crores
ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Cost
From GUVNL 11,006.18
DSM Charges 19.93
From Wind Farm 39.26
Solar power purchase 10.23
Income
Interstate Sale of Power 0.06
Sale of Power to GUVNL & Bulk Supply 69.27
DSM Revenue 40.16
Net Power Purchase Cost 10,376 10,966.17
3.6.4. The variation in the approved and the actual power purchase expenses is on account
of various reasons including change in approved cost of power, change in quantum of
power purchased allowed.
3.6.5. The quantum of power purchase depends upon the sales during the year as well as
the losses in the system. While the actual sales are higher than that approved by the
Ho le Co issio , however, the overall quantum of power purchased was lower
than the approved quantum of power purchase on account of the distribution losses
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 17
being lower than the approved level.
3.6.6. As per the GERC MYT egulatio s, the Ho le Co issio has atego ised the variation in the price of fuel and/or price of power purchase according to the FPPPA
fo ula app o ed the Ho le Co issio as a u o t olla le fa to . Fu the , the Ho le Co issio has also ide tified the a iatio i the u e o i of consumers or quantity of electricity sold to consumers as an uncontrollable factor.
Thus, the variation in the above factors affects the power purchase expenses and
results into either a loss or gain. Accordingly, any gain or loss on this account is to be
entirely passed o to the o su e s as pe the ethodolog app o ed the Ho le Commission.
3.6.7. In addition to the above, there is an incidence of lower power purchase cost on
account of the lower sales and lower Distribution Losses as compared to the sales and
losses app o ed the Ho le Co issio . These gai s has esulted i lo e po e purchase expenses as the quantum of power required to be purchased to meet the
same level of demand would be lower hence resulting in the gains as explained below:
Table 11 : Gain/ (Loss) on account of Distribution Losses for FY 2016-17
S.No. Particulars Unit
FY 2016-17
(with Approved
Distribution Losses)
FY 2016-17
(with Actual
Distribution
Losses)
1 Energy Sales MUs 22,682.15 22,682.15
2 Distribution Losses MUs 6,398.00 5,978.00
% 22.00% 20.86%
3 Energy Requirement MUs 29,080.15 28,660.15
4 Saving due to Distribution Losses MUs 420.00
5 Average Power Purchase Cost Rs./Unit 3.62
6 Gain/(Loss) due to Dist. Losses Rs. Crores 151.93
3.6.8. As can be seen from the above, the total gain on account of lower distribution losses
as compared to approved is Rs. 151.93 Crores. This gain is categorised as on account
of controllable factors and the appropriate treatment is given below:
Table 12 : Gains / (Loss) - Power Purchase Expenses
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Total Power Purchase Cost 10,375.61 10,966.17 151.93 (742.49)
3.6.9. Thus, as can be seen from the above table, the power purchase gain due to
controllable & uncontrollable factors are Rs. 151.93 Crores and Rs. (742.49) Crores
respectively which will have to be passed on to the consumers as per the
ethodolog app o ed the Ho le Co issio .
3.7. CAPITAL EXPENDITURE
3.7.1. Capital expenditure incurred by PGVCL in FY 2016-17 was Rs. 1,388.88 Crores. The
actual capital expenditure by PGVCL during the FY 2016-17 was Rs.405.53 Crores
lower tha that app o ed the Ho le Co issio . The s he e-wise capital
expenditure incurred in FY 2016-17 agai st app o ed the Ho le Co issio is as shown below:
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 18
Table 13 : Capital Expenditure
Rs in Crores
Sr. No. SchemesFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
A Distribution Schemes
Normal Development Scheme 320.00 290.11 29.89
System Improvement Scheme 100.00 131.78 (31.78)
Electrification of hutments 7.00 16.30 (9.30)
Kutir Jyoti Scheme - - -
Scheme for meters 80.00 33.67 46.33
Others Harijan Basti - Petapara - - -
Total 507.00 471.86 35.14
B Rural Electrification Schemes
TASP(Wells & Petapara) - -
Special Component plan 1.50 2.36 (0.86)
Others Petapara - - -
RE Normal + Tatkal 650.00 587.49 62.51
RE Wells ( OA & SPA) - - -
Dark zone - - -
BADP - - -
Total 651.50 589.85 61.65
C Others
Energy efficient pump - - -
Energy Conservation - - -
Independent certification agency - - -
Total - - -
D Non Plan Schemes
RE Non Plan (Tatkal) - - -
RAPDRP 25.00 17.09 7.91
SCADA/DMS - - -
RGGVY - - -
DRUM - - -
Total 25.00 17.09 7.91
E Other New Schemes
Civil work 15.00 - 15.00
Shunt Capacitors - - -
Automatic PF control panels - - -
Fencing to Distribution Transformer - - -
Aerial Bunch Conductors 1.00 - 1.00
HVDS 100.00 96.24 3.76
Automatic meter reading - - -
Under Ground System at Pilgim Places like
Dwarka, Somnath, Bhavnath (Junagadh) etc. and
important GIDC area 17.00 4.05
12.95
JGY Load Shedding Transformers - - -
Marine Cable for Shiyalbet - - -
Others schemes (General Schemes) - - -
Smart Village - 0.05 (0.05)
Earthquake Rehabilitation - - -
Coastal area scheme 30.00 46.58 (16.58)
IPDS 183.87 22.33 161.54
DDUGJY 142.04 8.64 133.40
Solar AG pumps 102.00 109.60 (7.60)
Solar home lights - - -
DISS 20.00 22.61 (2.61)
Total 610.90 310.08 300.82
Capital Expenditure Total 1,794.40 1,388.88 405.53
3.7.2. Scheme wise deviation in capital expenditure is explained as under:
Normal Development: Under the head Normal Development Scheme, generally
expenses are incurred to meet with the Supply Obligation which is mainly based
on the numbers of applications received. Therefore, during the FY 2016-17,
company had to incur Rs. 290.11 Crores against approved Rs. 320.00 Crores.
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 19
System Improvement: Under the head System Improvement, PGVCL carries out
renovation/replacement of old Distribution line, bifurcation of feeder,
installation/augmentation of Distribution Transformer etc. System Improvement
is carried out on requirement basis with the objective to improve reliability of
power supply and also to reduce distribution loss. Company incurred Rs. 131.78
Crores against approved Rs. 100.00 Crores.
Electrification of Hutments: In Electrification of Hutments Scheme Company
incurred Rs. 16.30 Crores against approved Rs.7.00 Crores.
Rural Electrification Scheme: Under the head RE Schemes, Company releases
Agriculture Category connections. Following the directive of the Commission,
Company has maximized targets for releasing the Connections of Agriculture
category. Accordingly, during FY 2016-17 Company released more than 55000
Agriculture connections during the year at the cost of Rs. 587.49 Crores against
approved Rs. 650 Crores.
Following the policy framed by State Government, Company has started releasing
connection in the Dark Zone area too from the year 2013-14.
R- APDRP: R-APDRP (Restructured Accelerated Power Development & Reforms
Programme) is the Central Sector Scheme. Government of India has appointed
Power Finance Corporation (PFC) as the Nodal Agency.
The basic purpose of the scheme is to reduce AT&C Losses in the urban areas.
Accordingly, all the towns having population more than 30,000 have been
covered under this scheme. PGVCL has 36 such towns, covering 84 sub divisions.
Scheme will be implemented in two parts: Part-A (IT Infrastructure
establishment) and Part-B (Distribution strengthening and modernization).
Moreover, three towns having population more than 4 lakhs and energy input
more than 350 MUs /year have been identified for installing SCADA/DMS system,
which are Rajkot, Bhavnagar and Jamnagar.
Part-A includes: Establishment of baseline data and adoption of IT applications
for meter reading, billing & collection; energy accounting & auditing; MIS;
redressal of consumer grievances; establishment of IT enabled consumer service
centers etc.
Part-B includes: Renovation, modernization and strengthening of 11 kV level
Substations, Transformers/Transformer Centers, Re-conductoring of lines at 11
(11 kV), Aerial Bunched Conductoring in dense areas, replacement of
electromagnetic energy meters with electronics meters, Installation of capacitor
banks and mobile service centers etc.
Scheme is to be implemented as per the guidelines issued by PFC from time to
time. Company has spent Rs. 17.09 Crores during the FY 2016 -17 under this
scheme.
SCADA/DMS: The objective of reducing Aggregate Technical and Commercial
(AT&C) losses in the project areas can be achieved by plugging pilferage points,
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 20
supply of quality power, faster identification of faults & early restoration of
power, proper metering, strategic placement of capacitor banks & switches and
proper planning & designing of distribution networks. The real time monitoring &
control of the distribution system through state-of-the art SCADA/DMS system
encompassing all distribution substations & 11 KV network would help in
achieving this objective of R-APDRP. For deriving maximum benefits it is essential
that necessary upgradation of distribution S/S & 11kV network shall be carried
out to meet the SCADA/DMS requirements. SCADA is to be implemented through
SCADA Implementation Agency (SIA).
High Voltage Distribution System (HVDS): Company is having large nos. of Low
Tension category consumers. To eliminate low voltage distribution and to have
better voltage profile as well as for reduction in Technical loss and associated
commercial loss company has proposed to shift over to High Voltage Distribution
System by erecting small capacity Transformer matching with the connected load
of individual consumer or very small group of consumers in phased manner.
During the year company has incurred Rs. 96.24 Crore as against approved Rs.
100 Crores.
Coastal Area Scheme: PGVCL covers largest costal area of the state. Majority of
the Distribution network of the Co pa is O e head t pe. O e head network is highly susceptible to environmental changes in general and
particularly in coastal area. To provide better quality power supply in the coastal
belt, Company undertakes various activities like renovation of Distribution
network, Distribution Transformer review, providing Aerial Bunch Conductor,
conversion of LT Distribution network into High Voltage Distribution System etc.
Scope of work is planned depending on time to time requirement and exigency of
work. Accordingly, Company has spent Rs. 46.58 Crores during FY 2016-17 against
approved Rs. 30 Crores.
Underground Network: For Supplying reliable Power Supply to the Pilgrim Places,
PGVCL has initiated to convert the existing Overhead Distribution System to
Underground. During the year, Company has incurred Rs. 4.05 Crores as against
approved Rs. 17.00 Crores.
Distribution Infrastructure & Shifting Scheme: Under this scheme, Distribution
infrastructure upgradation & Shifting work of HT/L lines, Transformer Centers,
Poles etc. and converting overhead lines into underground lines in the areas
falling under Municipalities and urban development Authorities. It is being carried
out to remove obstructions in road widening and road development. This scheme
is being funded by the State government through equity infusion. During the
year, Company has incurred Rs. 22.61 Crores as against approved Rs. 20.00
Crores.
Integrated Power Development Scheme (IPDS): This Scheme is applicable in the
town/ urban areas having population 5000 and more as per Census 2011. Scheme
involves strengthening of Sub-transmission and Distribution network in urban
areas including provisioning of solar panels on Govt. buildings including Net-
metering, Metering of feeders / distribution transformers / consumers in urban
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 21
areas and, IT enablement of distribution sector and strengthening of distribution
network, etc. During the year, Company has incurred Rs. 22.33 Crores as against
approved Rs. 183.87 Crores.
Deen Dayal Upadhyah Gram Jyoti Yojna (DDUGJY): This Scheme is applicable in
the rural areas of the Company. Scheme involves strengthening and
augmentation of sub-transmission & distribution to ensure reliable and quality
power supply in rural areas, Conversion of existing LV network to HV network,
improving consumer level metering system, installation of meter at distribution
transformers for proper energy accounting, identifying high loss pockets etc.
During the year, Company has incurred Rs. 8.64 Crores as against approved Rs.
142.04 Crores
Solar Agriculture Pump: Agriculture contributes significant share in the
consumption of the Company and company has pending large nos. of applications
for Agriculture connection. In order to inculcate the sense of use of green, clean
power among the agricultural consumers, Company, in corroboration with the
State Government, has initiated providing off grid Solar Pump to Agriculture
consumers whose application is registered and pending with the Company.
During the year, Company has incurred Rs. 109.60 Crores as against approved Rs.
102.00 Crores.
3.8. FUNDING OF CAPITALISATION
3.8.1. The funding of actual capitalisation is done through various sources categorised under
four headings namely: Consumer Contribution, Grants, Equity and Debt. The detailed
breakup of funding of capitalised asset during FY 2016-17 is mentioned in the table
below.
Table 14 : Funding of Capitalisation
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Capitalization 1,794.41 1,380.08 414.33
2 Less : Consumer Contribution 178.29 163.80 14.49
3 Grants 249.04 362.11 (113.07)
4 Balance CAPEX 1,367.08 854.17 512.90
5 Debt @ 70% 956.95 597.92 359.03
6 Equity @ 30% 410.12 256.25 153.87
3.8.2. The interest and finance charges incurred for the debt funding portion have been
discussed in the paragraph 3.12 and the Return on the Equity under paragraph 3.15 of
the Petition.
3.9. FIXED COST FOR FY 2016-17
3.9.1. The fixed cost of PGVCL for FY 2016-17 has been determined in accordance with the
GERC MYT Regulations, 2016. As outlined under the regulations, the fixed cost for
PGVCL has been determined under the following major heads:
Operation and Maintenance Expenses
Depreciation
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 22
Interest and Finance Charges
Interest on Working Capital
Income Tax
Return on Equity
3.9.2. Net Annual Revenue Requirement of PGVCL has been computed after netting off
expenses capitalised and non-Tariff income.
3.9.3. For the purpose of True-Up, all the heads mentioned above have been categorized
into Controllable or Uncontrollable in line with provisions of GERC MYT Regulations,
2016. A head wise comparison of cost has been made between the values approved
the Ho le Co issio ide Ta iff O de dated 31st March, 2017 and the actual
expenses of PGVCL in FY 2016-17.
3.10. OPERATION & MAINTENANCE EXPENSES
3.10.1. Operations and Maintenance (O&M) Expenses of PGVCL consists of the following
elements:
Employee Expenses
Repairs and Maintenance Costs
Administrative and General Expenses
3.10.2. Employee expenses comprise of salaries, dearness allowance, bonus, terminal
benefits in the form of pension & gratuity, leave encashment and staff welfare
expenses.
3.10.3. Repairs and Maintenance expenses are incurred towards the day to day upkeep of the
distribution network and form an integral part of the efforts towards reliable and
quality power supply as also in the reduction of losses in the distribution system.
3.10.4. Administration & General expenses mainly comprise of rents, telephone and other
communication expenses, professional charges, conveyance and travelling allowances,
etc.
3.10.5. PGVCL is also required to include the expenses of the following items of the ARR into
O&M e pe ses the Ho le Co issio :
Other Debits
Extraordinary Items
DSM Expenses
Other Expenses Capitalised
3.10.6. After inclusion of all the above parameters for FY 2016-17, PGVCL s a tual O&M expenses were Rs 941.01 Crores which is inclusive of Employee cost of Rs. 839.39
Crores, Repair & Maintenance Charges of Rs. 119.43 Crores and Administration &
General Expenses of Rs. 135.59 Crores along with Other debits, Extraordinary items,
Net prior period expense/ (income) and Other expenses capitalised against the
approved O&M expense which is Rs. 507.17 Crores.
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Paschim Gujarat Vij Company Limited 23
Table 15 : Operation & Maintenance Expenses
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Employee Cost 637.21 839.39 (202.18)
2 Repair & Maintenance 99.82 119.43 (19.61)
3 Administration & General Charges 118.76 135.59 (16.83)
4 Other Debits - 8.19 (8.19)
5 Extraordinary Items 0.00 - 0.00
6 DSM Expenses - 17.12 (17.12)
7 Other Expenses Capitalised (348.63) (178.71) (169.92)
3.10.11. The actual A&G expense for FY 2016-17 were Rs. 135.59 Crores. As per the provisions
of the GERC MYT Regulations, 2016, A&G expenses are categorised as controllable
e pe ses a d a o di gl , the o pa iso of alue app o ed the Ho le Commission with the actual A&G expenses of PGVCL shows a gain/(loss) of Rs.
(16.83) Crores as highlighted in the table below:
Table 19 : Administration & General Expenses for FY 2016-17
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Administration & General Charges 118.76 135.59 (16.83) -
Other Debits
3.10.12. As per the provisions of the GERC MYT Regulations, 2016, Other debits are
categorised as uncontrollable expenses and accordingly, the comparison of value
app o ed the Ho le Co issio ith the a tual othe de its of PGVCL shows a
gain/(loss) of Rs. (8.19) Crores as highlighted in the table below:
Table 20 : Other Debits for FY 2016-17
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Other Debits - 8.19 - (8.19)
DSM Expenses
3.10.13. As part of DSM expenses, PGVCL has incurred Rs. 17.12 Crores for FY 2016-17. The
Ho le Co issio has p i ipall app o ed the D“M e pe ses o e a d a o e A‘R
approved for FY 2016-17 vide Order No. 1665 of 2017 dated 12th October, 2017. The
Ho le Co issio is e ui ed to o side the sa e as u o t olla le e pe ses a d approve the same.
Other Expenses Capitalised
3.10.14. PGVCL has capitalised Rs. 178.71 Crore as against approved capitalisation of Rs.
348.63 C o e. The Ho le Co issio is e uested to approve uncontrollable
gain/(loss) of Rs. (169.92) Crore.
3.10.15. The comparison of actual O&M expenses by PGVCL during FY 2016-17 with the value
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 25
app o ed the Ho le Co issio sho s a et gai / loss of ‘s. (397.40) Crores
on account of uncontrollable factors and net gain/(loss) of Rs. (36.44) Crores on
account of controllable factors to PGVCL.
3.11. DEPRECIATION
3.11.1. The financial statements have been prepared in accordance with Ind AS prescribed
under the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
Property, Plant and Equipment comprises of tangible assets are stated after reducing
accumulated depreciation until the date of the Balance Sheet. PGVCL has considered
opening gross fixed assets same as closing gross fixed assets for FY 2015-16 as
app o ed the Ho le Co issio at the ti e of T ui g up of FY -16 under
Tariff Order dated 31st March, 2016.
3.11.2. PGVCL has charged depreciation on fixed assets of the Company, on the useful life of
the assets at rates prescribed in MYT Regulations, 2016 for FY 2016-17.
3.11.3. The actual and approved depreciation for FY 2016-17 is as shown below:
Table 21 : Fixed Asset and Depreciation for FY 2016-17
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Gross Block in Beginning of the year 11,815.14 11,815.14
2 Additions during the Year (Net) 1,794.40 1,380.08
3 Depreciation for the Year 669.94 654.35 15.59
4 Average Rate of Depreciation 5.27% 5.23%
3.11.4. The actual depreciation for FY 2016-17 as agai st the alue app o ed the Ho le
Commission results into a uncontrollable gain/(loss) of Rs. 15.59 Crores as indicated
below:
Table 22 : Treatment of Depreciation
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Depreciation 669.94 654.35 - 15.59
3.12. INTEREST & FINANCIAL CHARGES
3.12.1. For assessing actual Interest charges on Loans in FY 2016-17, PGVCL has considered
the opening balance of loans for FY 2016-17. The loan addition in FY 2016-17 is
computed at Rs. 597.92 Crores which consists of loans for funding the capital
expenditure as discussed in paragraph 3.7.2 above and the balance for funding the
past liabilities.
3.12.2. I li e ith the app oa h adopted the Ho le Co issio a d as p es i ed GERC MYT Regulations, 2016 repayment during the year has been considered equal to
the depreciation for the financial year.
3.12.3. Based on the interest paid on the outstanding loans, the weighted average rate of
interest is 9.80% as against 8.09% as app o ed the Ho le Co issio .
3.12.4. PGVCL submits that it has been allocated some guarantees of Govt. of Gujarat, for
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 26
which it is required to pay the guarantee charges. These are the legacy loans which
have come from the erstwhile GEB. These charges are, thus, beyond control of PGVCL
and hence are required to be considered in the total financial cost.
3.12.5. The total Interest & Financial charges for FY 2016-17 computed by PGVCL as against
that app o ed the Ho le Co issio is as sho elo :
Table 23 : Interest & Finance Charges
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Opening Loans 2,542.19 2,542.19
2 Loan Additions during the Year 956.95 597.92
3 Repayment during the Year 669.94 654.35
4 Closing Loans 2,829.20 2,485.76
5 Average Loans 2,685.70 2,513.97
6 Interest on Loan 217.27 246.44 (29.17)
7 Interest in Security Deposit 118.86 102.32 16.54
8 Guarantee Charges 7.14 0.34 6.80
9 Total Interest & Financial Charges 343.28 349.10 (5.83)
10 Weighted Average Rate of Interest 8.09% 9.80%
3.12.6. The GERC MYT Regulations, 2016 categorise the interest and finance charges as
uncontrollable expenses. Any changes on account of changes in applicable interest
rates should be considered as uncontrollable. Accordingly, PGVCL has considered
deviation in the actual vis-à-vis the approved expenses towards interest and finance
charges as uncontrollable. The same has been provided in the table given below:
Table 24 : Treatment of Interest & Finance Charges
3.13.1. The interest on working capital has been calculated on the basis of normative
parameters, provided in the GERC MYT Regulations, 2016.
3.13.2. The rate of interest considered is the rate equal to the weighted average State Bank
Base Rate (SBBR) prevailing during the financial year plus 250 basis points, as per the
GERC MYT Regulations, 2016. Also, as per these regulations, one month of receivables
are to be considered for calculation of interest on working capital. Also amount held
as security deposit from consumers under clause (a) and clause (b) of sub-section (1)
of Section 47 of the Electricity Act 2003 except the security deposit held in the form of
Bank Guarantees is to be deducted from it. PGVCL has claimed normative interest on
working capital for FY 2016-17 as shown below:
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Paschim Gujarat Vij Company Limited 27
Table 25 : Interest on Working Capital
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 O & M expenses 42.26 78.42
2 Maintenance Spares 118.15 118.15
3 Receivables 1,029.77 1,053.81
4Less: Amount held as security deposit from
consumers 1,533.66 1,551.86
5 Total Working Capital (343.48) (301.48)
6 Rate of Interest on Working Capital 11.79%
7 Interest on Working Capital - - -
3.14. PROVISION FOR BAD DEBTS
3.14.1. PGVCL has proposed a provision of Rs. 4.02 Crores for bad & doubtful debts for the FY
2016-17.
3.14.2. A o pa iso of the a tual alue ith the figu e app o ed the Ho le Co issio for FY 2015-16 shows a gain/(loss) of Rs. (4.02) Crores on account of controllable
factors as shown in the table below:
Table 26 : Provision for bad debts
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Provision for Bad Debts - 4.02 (4.02) -
3.15. RETURN ON EQUITY
3.15.1. As per the GERC MYT Regulations, 2011, a return @ 14% on the equity base is
o side ed as easo a le a d allo ed the Ho le Co issio . A o di gly,
PGVCL has computed the Return on Equity considering a rate of return at 14%.
3.15.2. For assessing actual return on equity for FY 2016-17, PGVCL has considered the
opening balance of equity of FY 2016-17 and additions during the year as already
discussed in paragraph 3.7.2 above have been considered. The return on equity for FY
2016-17 is as shown below:
Table 27 : Return on Equity
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Opening Equity Capital 2,830.34 2,650.30 180.04
2 Equity Additions during the Year 410.12 256.25 153.87
3 Closing Equity 3,240.46 2,906.55 333.91
-
4 Average Equity 3,035.40 2,778.43 256.97
5 Rate of Return on the Equity 14% 14%
6 Return on Equity 424.96 388.98 35.98
3.15.3. A comparison of the actual Return on Equity for FY 2016-17 with the amount
app o ed the Ho le Co ission shows a net uncontrollable gain/ (loss) as
indicated below.
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Paschim Gujarat Vij Company Limited 28
Table 28 : Treatment of Return on Equity
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)
Gain/(Loss) due
to Controllable
Factor
Gain/(Loss) due to
Uncontrollable
Factor
1 Return on Equity 424.96 388.98 - 35.98
3.16. TAXES
3.16.1. The actual tax/provision for tax in FY 2016-17 was Rs. 80.93 Crores as against Rs.
18.96 C o es app o ed the Ho ble Commission as shown below:
Table 29 : Provision for Taxes
Rs in Crores
Sr. No. ParticularsFY 2016-17
(Approved)
FY 2016-17
(Actual)Deviation
1 Income Tax (MAT) 18.96 80.93 (61.97)
3.16.2. It is submitted that Income Tax being a statutory expense, any variation on this
account is uncontrollable. Accordingly, PGVCL e uests the Ho le Co issio to consider the same as an uncontrollable loss and allow the entire expenditure towards
income tax without any deduction.
3.16.3. A comparison of actual taxes for FY 2016-17 with the amount approved by the
Ho le Co issio sho s a u o t olla le gai / loss of ‘s. (61.97) Crores as
19 Verification of X status connection Nos. 159239 155303 68661
20 Verification of Y status connection Nos. 47216 32372 14542
21 Verification of RGP connections < 50
units Nos. 242852 274967 120203
22 Verification of NRGP connections <
50 units Nos. 75042 68099 28968
23 Release of New Connections ( All
category)through E-Urja Nos. 62197 188853 38901
24 Maintenance of HT Line Kms 23075 95611 12382.57
25 Maintenance of LT Line Kms 16627 47815 7224.99
26 Maintenance of T/C Centers Nos. 29194 73714 11910
27 Augmentation of Transformer for
Ag. Load extension Nos. 472 552 133
As di e ted Ho le Co issio , PGVCL sele ted os. J otig a feede s ha i g o e than 50% Distribution Loss for focused action such feeders. Aggregate loss of all such feeders
as . % as o Ma h a d ha e edu ed to . % as o August .
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 41
Taking into account the area constraints, available resources and past trend, Company has
planned to reduce further 5% during the current financial year.
Directive 4: Report on Segregation of HT & LT losses
Compliance: PGVCL has submitted the report on Segregation of HT & LT Losses.
Compliance of Fresh Directives issued vide Tariff order dated 31st March, 2017
Directive 1: Subsidy for Agricultural Consumers:
Some of the stakeholders pointed out that the Discoms are not providing separate details
related to Subsidy claimed, Subsidy received and outstanding subsidy with the State
Government. In view of the ambitious target for clearing backlog of pending application for
Agricultural connections, the Discom is directed to report progress on release of Agricultural
Connections along with details related to subsidy claimed under different heads, subsidy
received and outstanding subsidy from the State Government on quarterly basis.
Compliance: Time to time compliance to the Directive on Subsidy for Agricultural is
submitted by GUVNL & PGVCL.
Directive 2: Replacement of Defective Meters:
It is observed that a high number of defective meters exist in the system. Such a high number
of defective meters in the system is not only affecting revenues of the Discom but it also is
resulting into consumer grievances. Discom is directed to prepare detailed action plan for
replacement of defective meters and submit the same by 30th June 2017
Compliance:
‘epla e e t a d “tatus of defe ti e ete is su itted to Ho le Co issio o ua te l basis by the Company. It would be apt to mention that company replaces meters regularly
and, in fact, it is a continuous activity.
Further, it is pertinent to state that PGVCL has large consumer base having 48 Lacs plus
consumers under different tariff category. Out of which, more than 25 Lac number of
consumers are prior to the year 2000. Though, erstwhile GEB had started procuring High
precision meters both for single and three phase connections from the year 2000-2001, the
procurement of precision single phase meters on large scale basis was happen only from 2003
a d o a ds. At that ti e, also Ele t o e ha i al ased si gle phase p e isio ete s were available. Factually, the Company had started procuring three phase static meters from
year 2005 onwards and single phase electronic / static meters from 2008-09 onwards. Being
large consumer base is from single phase connection, the majority faulty meters are also from
the single phase category. Meter is classified as faulty meter on account of functional
problems generally observed at the time of meter reading or inspection such as stuck up,
running slow, fast, creeping or improperly recording or not functioning as per requirement.
There are two main causes for meter getting faulty, either due to technical defect or wear and
ta e a d a othe o e due to o su e s i te fe e e.
Detail of the meters replaced during last five years and planning for next two years is given
here under.
Petition for True Up for FY 2016-17 and Determination of Tariff for FY 2018-19
Paschim Gujarat Vij Company Limited 42
Meters Replaced:
Sr. No.
Year Description Nos. of Meters
Replaced
1 2015- 16
Defective replaced 123830
Other than defective replaced 276492
Total 400322
2 2016-17
Defective replaced 100438
Other than defective replaced 305960
Total 406398
3
2017 -18
“ept.
Defective replaced 46598
Other than defective replaced 130246
Total 176844
Since, this being a continuous activity, it is planned that consumer meters having present
faulty status shall be replaced within a year time and our planning for next two years is as
under.
Planning for Meter Replacement:
Sr. No.
Year Planning for
replacement
1 2017-18 522887
2 2018-19 475000
Directive 3: Rooftop Solar Installation:
Discoms is directed to report the progress with the details like number of applications