BEFORE HARYANA ELECTRICITY REGULATORY COMMISSION Filing of the Petition for True-Up of FY 2016-17, Annual Performance review for FY 2017-18 and Annual Revenue Requirement for FY 2018-19 by Dakshin Haryana Bijli Vitaran Nigam Limited under HERC (Terms and Conditions for Determination of Tariff for Distribution & Retail Supply under Multi Year Tariff Framework) Regulations, 2012 along with the other guidelines and directives issued by the Hon’ble Commission from time to time and under Sections 42, 45, 46, 47, 61, 62, 64 and 86 of the Electricity Act 2003 read with the relevant guidelines. Filed by Dakshin Haryana Bijli Vitran Nigam Limited Hisar Superintending Engineer/Regulatory Affairs Regd. Office: C-Block, Vidyut Sadan, Vidyut Nagar, Hisar-125005, Haryana (India) Email [email protected]Phone 01662-223196 Date: 30 November 2017
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BEFORE
HARYANA ELECTRICITY REGULATORY COMMISSION
Filing of the Petition for True-Up of FY 2016-17, Annual Performance review for FY 2017-18
and Annual Revenue Requirement for FY 2018-19 by Dakshin Haryana Bijli Vitaran Nigam
Limited under HERC (Terms and Conditions for Determination of Tariff for Distribution &
Retail Supply under Multi Year Tariff Framework) Regulations, 2012 along with the other
guidelines and directives issued by the Hon’ble Commission from time to time and under
Sections 42, 45, 46, 47, 61, 62, 64 and 86 of the Electricity Act 2003 read with the relevant
1.1 BACKGROUND – INDIAN POWER SECTOR ......................................................................... 1 1.2 ALL INDIA INSTALLED CAPACITY ...................................................................................... 2 1.3 PROFILE OF DHBVNL ....................................................................................................... 4 1.4 TRANSMISSION & DISTRIBUTION LOSSES ......................................................................... 7 1.5 REVENUE ............................................................................................................................ 9 1.6 HT-LT RATIO .................................................................................................................... 9 1.7 REGULATORY FRAMEWORK ............................................................................................. 10 1.8 CURRENT PETITION .......................................................................................................... 12
CHAPTER 2. TRUE-UP OF FY 2016-17 .......................................................................... 14
2.1 PRINCIPLES OF TRUE UP FOR FY 2016-17 ......................................................................... 14 2.2 POWER PURCHASE AND POWER PURCHASE COST ........................................................... 15 2.3 ENERGY BALANCE ............................................................................................................ 20 2.4 OPERATION & MAINTENANCE EXPENSES ........................................................................ 21 2.5 EMPLOYEE EXPENSES ....................................................................................................... 22 2.6 REPAIR & MAINTENANCE EXPENSES ............................................................................... 23 2.7 ADMINISTRATIVE & GENERAL EXPENSES ........................................................................ 24 2.8 CAPITAL EXPENDITURE .................................................................................................... 24 2.9 INTEREST COST ON LONG TERM LOANS........................................................................... 24 2.10 INTEREST ON WORKING CAPITAL AND BORROWINGS .................................................... 25 2.11 INTEREST ON CONSUMER SECURITY DEPOSITS ............................................................... 25 2.12 INTEREST ON BONDS ....................................................................................................... 25 2.13 TOTAL INTEREST & FINANCE COST ................................................................................. 26 2.14 DEPRECIATION ................................................................................................................. 27 2.15 RETURN ON EQUITY ......................................................................................................... 27 2.16 NON – TARIFF INCOME .................................................................................................... 28 2.17 EXPENDITURE DUE TO OTHER DEBTS ............................................................................... 28 2.18 TRUE UP OF RE SUBSIDY .................................................................................................. 29 2.19 SUMMARY OF TRUE UP OF FY 2016-17 .............................................................................. 29
CHAPTER 3. ANNUAL PERFORMANCE REVIEW FOR FY 2017-18 AND ANNUAL REVENUE REQUIREMENT FOR FY 2018-19 ............................................... 32
3.1 PREAMBLE ........................................................................................................................ 32 3.2 CAPITAL EXPENDITURE .................................................................................................... 32 3.3 TRANSMISSION AND DISTRIBUTION LOSSES. ................................................................. 35 3.4 CAPITAL WORK IN PROGRESS ......................................................................................... 35 3.5 ASSESSMENT OF ENERGY SALES FOR 2017-18 AND 2018-19 ............................................. 36 3.6 ENERGY AVAILABILITY FOR HARYANA FOR FY 2017-18 AND FY 2018-19 ........................ 37 3.7 TRANSMISSION LOSSES ................................................................................................... 46 3.8 ENERGY BALANCE – DHBVNL ........................................................................................ 46 3.9 OPERATION & MAINTENANCE EXPENSES ........................................................................ 48 3.10 COMPUTATION OF INFLATIONARY INDICES .................................................................... 50 3.11 EMPLOYEE EXPENSES ....................................................................................................... 51 3.12 REPAIR & MAINTENANCE EXPANSES ............................................................................... 52 3.13 ADMINISTRATION & GENERAL EXPENSES ....................................................................... 53 3.14 SUMMARY OF O&M EXPANSES ....................................................................................... 54 3.15 INTEREST & FINANCE CHARGES ...................................................................................... 54
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19 DHBVNL
3.16 DEPRECIATION ................................................................................................................. 64 3.17 NON-TARIFF INCOME ...................................................................................................... 66 3.18 RETURN ON EQUITY ......................................................................................................... 67 3.19 INTEREST ON CONSUMER SECURITY DEPOSIT ................................................................. 67 3.20 BAD AND DOUBTFUL DEBTS ............................................................................................ 68 3.21 REVENUE ESTIMATION .................................................................................................... 68 3.22 REVENUE FROM INTER-STATE SALES: ............................................................................... 69 3.23 REVENUE FROM FSA: ............................................................... ERROR! BOOKMARK NOT DEFINED. 3.24 AGRICULTURE SUBSIDIES: ............................................................................................... 69 3.25 TARIFF REQUIREMENT: .................................................................................................... 69 3.26 TRUE UP OF RE SUBSIDY FOR FY 2016-17 ......................................................................... 72
CHAPTER 4. RECOVERY OF OUTSTANDING GAPS ............................................... 74
Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19 DHBVNL
List of Tables
Table 1: Details of division and sub-division offices ............................................................................................... 5
Table 2: Category wise Sales (MUs) for last six years ........................................................................................... 5
Table 3: Power Purchase Details for FY2016-17 .................................................................................................. 16
Table 4: Power Purchase Details for FY-2016-17 for Haryana (in MU) ............................................................. 20
Table 5: Energy Balance for FY 2016-17 .............................................................................................................. 20
Total PP Cost incl. of all charges 53,958.17 2,03,331.61 22,355.67 1,02,561.21 28,908.03 1,30,013.50 51,263.70 2,32,574.71
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Table 4: Power Purchase Details for FY-2016-17 for Haryana (in MU)
Haryana Power Purchase
Approved Actual Difference
Power Purchase Quantum 53958.17 51263.70 2694.47
Further, it is submitted that average actual per unit cost comes out at Rs. 4.26 per
unit; higher than the average approved per unit cost of Rs. 3.77 per unit; the actual
average per unit cost is higher than approved levels due to increase in actual power
purchase cost from various sources as compared to approved.
The appellant submits herewith that in actual for FY 2016-17, the power allocation
ratio is 44% and 56% for UHBVN and DHBVN respectively. The petitioner would
like to submit that even actual power purchases are in line with the approval by
Hon’ble Commission.
The Petitioner prays to the Hon’ble Commission to approve the actual power
purchase quantum of 28,908.03 MU and associated power purchase cost
Rs. 13,001.35 Crore of DHBVN for FY 2016-17 as per the Annual Accounts as
summarized in the table above.
2.3 Energy Balance
The Energy Balance for FY 2016-17 is shown below:
Table 5: Energy Balance for FY 2016-17
Particulars Unit FY 2016-17
Total Power purchase * Mus 28,908.03
Sale outside the State including Banking &UI Mus 2,279.22
Purchase for sale within the state (a-b) Mus 26,628.82
Less Transmission losses Mus 1,065.70
Transmission Losses % 3.69%
Power available for sale Mus 25,563.11
Sales within the state (excluding Agriculture) Mus 14,197.40
Sales within the state - Agriculture Mus 5,614.52
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Particulars Unit FY 2016-17
Total Sales* Mus 19,811.92
Distribution Loss % 22.50%
DHBVN requests the Hon’ble Commission to approve the same.
2.4 Operation & Maintenance Expenses
The Operation & Maintenance Expenses of the company includes
• Employee Expenses;
• Repair & Maintenance Costs and
• Administrative and General Expenses.
Employee Expense consists of salaries, dearness allowance, bonus, terminal
benefits in the form of pension & gratuity, leave encashment and staff welfare
expenses.
Repairs and Maintenance Expenses go towards the day to day upkeep of the
distribution network of the Company and form an integral part of the
Company’s efforts towards reliable and quality power supply as also in the
reduction of losses in the system.
Administrative expenses mainly comprise of rents, telephone and other
communication expenses, professional charges, conveyance and travelling
allowances and other debits.
A comparison of Actual against the approved Net O&M Expenses (after
deducting the capitalization) is highlighted in the following table.
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Table 6: O&M Expenses for FY 2016-17 (Rs. Crore)
Particulars Approved Actual Difference
Employee Expense 629.03 669.34 40.31
Administration & General Expense 73.86 82.18 8.32
Repair & Maintenance Expense 132.77 68.23 (64.54)
Terminal Liability 335.38 420.00 84.62
Total 1,171.04 1,239.76 68.98
As seen from the table above; the total O&M Expenses for FY 2016-17 have been
provided along with the approved expenses for the year. DHBVN prays the
Hon’ble Commission to approve the same.
2.5 Employee Expenses
The ‘Employees cost' includes the cost incurred by the distribution licensees on
their employees who are presently working as well as for their retired
employees. The cost of working employees includes salary, dearness allowance
and other allowances such as HRA, CEA, LTC, medical reimbursement etc.
However, in case of retired employees and those who would retire during the
year, the distribution licensees have to discharge financial liabilities towards
pension, gratuity, leave encashment benefit etc.
DHBVN has incurred Terminal Benefits of Rs. 420 Crore, Basic salary expenses
of employees as Rs. 191.64 Crore dearness allowance expense of employees as
Rs. 230.16 Crore, and Rs 109.40 Crore as other allowances.
The summary of the actual employee expenses for FY 2016-17 vis-à-vis the
expenses approved by the Hon’ble Commission has been given in the table
below:
Table 7: Employee Expenses for FY 2016-17 (Amt. in Rs. Crore)
Particulars Approved Actual Difference
Basic Salary 629.03 191.64 (49.70)
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Particulars Approved Actual Difference
Dearness Allowance (DA) - 230.16
Expenditure on Contract Employees - 147.54
Other allowance - 109.40
Terminal benefits 335.38 420.00 (84.62)
Gross Employee Expense 964.61 1,098.73 (134.32)
Less Expenses Capitalised - 9.39 9.39
Net Employee Expenses 964.61 1,089.34 124.93
DHBVN prays the Hon’ble Commission to approve the actual Employee
Expense for FY 2016-17 of Rs. 1089.34 Crore against the approved expense of
Rs. 964.61 Crore per the details given in above table.
2.6 Repair & Maintenance Expenses
Repair and Maintenance expenditure is dependent on various factors. R&M
cost is meant for the upkeep of the system. Every asset requires repair and
maintenance at some point and in order to keep the system healthy and running
the Petitioner has to incur substantial amount on R&M to keep its assets
running. DHBVN has been trying its best to ensure uninterrupted operations
of the system and accordingly has been undertaking necessary expenditure for
R&M activities to keep the system health and maintain the quality indices.
The summary of the comparison of the actual R&M expenses for FY 2016-17 vis-
à-vis the expenses approved by the Hon’ble Commission has been given in the
table below:
Table 8: R&M Expenses for FY 2016-17 (Amount in Rs. Crore)
Particulars Approval Actual Difference
Repair and maintenance Expenses 132.77 68.23 (64.54)
It is submitted that as per the available accounts of FY 2016-17, the R&M
expenses, work out to be Rs. 68.23 Crore, which is computed as 1.00% of Avg.
GFA for FY 2016-17.
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
DHBVN prays the Hon’ble Commission to approve the actual R&M Expense
for FY 2016-17 of Rs. 68.23 Crore against the approve expense of Rs. 132.77
Crore as per the details given in above table.
2.7 Administrative & General Expenses
The actual A&G Expense for FY 2016-17 is Rs. 82.18 Crore against Rs. 73.86
Crore as approved by the Hon’ble Commission. There is a slight increase in the
A&G expenses incurred over the approved level.
The summary of the comparison of the actual A&G expenses for FY 2016-17 vis-
à-vis the expenses approved by the Hon’ble Commission has been given in the
table below:
Table 9: A&G Expenses for FY 2016-17 (Rs. Crore)
Particulars Approved Actual Difference
Gross A&G Expenses 73.86 90.43 16.57
Less: Expenses Capitalised - 8.25 8.25
Net A&G Expenses 73.86 82.18 8.32
DHBVN prays the Hon’ble Commission to approve the actual A&G Expense
for FY 2016-17 of Rs. 82.18 Crore as per the details given in above table.
2.8 Capital Expenditure
The Hon’ble Commission approved a Capital Expenditure of Rs. 1200.00 Crore
for DHBVN for FY 2016-17. As per the audited accounts of DHBVN for FY 2016-
17; the Capital Expenditure for DHBVN for FY 2016-17 is Rs. 640.93 Crore.
DHBVN, thus requests the Hon’ble Commission to approve the same.
2.9 Interest Cost on long term loans
The Hon’ble Commission has allowed an amount of Rs. 81.89 Crore as interest
cost on borrowings for FY 2016-17. However, the Gross Interest on Capex Loans
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
in actual were Rs. 214.10 Crore, with interest capitalised being Rs. 119.50 Crore
and Net Interest on Capex Loans being Rs. 94.60 Crore.
2.10 Interest on Working Capital and Borrowings
The Hon’ble Commission has allowed the interest on borrowings for working
capital as per the MYT Regulation. In case of DHBVN, Hon’ble Commission
had approved the working capital requirement of Rs. 1023.31 Crore. @Interest
rate of 11.30% on this borrowing amount to Rs. 108.00 Crore. However, the
interest on borrowings for working capital as per actual are Rs. 842.97 Crore as
per the audited accounts for FY 2016-17.
2.11 Interest on Consumer Security Deposits
The Hon’ble Commission has allowed Rs. 26.63 Crore as interest on consumer
security deposit for FY 2016-17. However, the actual expenses under this head
work out to be Rs. 18.63 Crore
DHBVN thus prays to the Hon’ble Commission to approve the actual Expense
for interest on consumer security deposit for FY 2016-17 as per the details given
above.
2.12 Interest on Bonds
It is submitted that Government of India has notified Ujwal Discom Assurance
Yojana (UDAY) scheme for operational and financial turnaround of power
distribution companies (DISCOMs), on 20th Nov 2015 under which State shall
take over 75% of Discom debt as on 30th September, 2015 over two years – 50%
of Discom debt shall be taken over in FY 2015-16 and 25% in FY 2016-17. The
schedule of takeover of loan has been given as under:
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Break up of State Govt Takeover of Loans
Particulars FY 16 FY 17 FY 18 FY 19 FY 20
Grant (%) 11.25% 11.25% 11.25% 11.25% 11.25%
Grant (Cr) 3,892.5 3,892.5 3,892.5 3,892.5 3,892.5
Equity (%) 3.75% 3.75% 3.75% 3.75% 3.75%
Equity (Cr)
1,297.5 1,297.5 1,297.5 1,297.5 1,297.5
Debt (%) 35.00% 45.00% 30.00% 15.00% 0.00%
Debt (Cr) 12,109.9 15,569.9 10,379.9 5,190.0 0.0
The Amount taken over by the Government of Haryana will been converted
into grant in 5 tranches and in the meantime the interest cost of such bonds
which has not been converted into grants by the GoH has to be borne by the
Licensee only.
The Licensee in the FY 2016-17 has borne interest cost of Rs 461.21 Cr total
Interest on UDAY bonds.
Before UDAY, the interest on FRP bonds was borne by the Government of
Haryana, However, after the UDAY scheme the same is being borne by the
Licensee. In the FY 2016-17, an expense of Rs 0.12 Cr has been incurred by the
licensee to service the cost of FRP bonds.
Also, an amount of Rs 73.88 has been paid toward HVPN Bonds.
2.13 Total Interest & Finance Cost
The total Interest Expense as per the audited annual accounts of DHBVN for
FY 2016-17 vis-à-Vis approved by the Hon’ble Commission is shown in the table
below:
Table 10: Total Interest & Finance Cost for FY 2016-17 (Rs. Crore.)
Category Approved Actual
Gross Interest on Capex Loans 81.89 214.10
Less: Interest Capitalized 119.50
Net Interest on Capex Loans 81.89 94.60
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Category Approved Actual
Interest on Working Capital Loans 108.00 307.78
Interest on FRP Borrowings 0.12
Interest on HVPNL Bonds 73.88
Interest on UDAY Loans 461.21
Interest on Consumer Security Deposits 26.63 18.63
Other Interest and Finance charges 3.53
Total 216.52 959.74
DHBVN prays the Hon’ble Commission to approve the actual interest & finance
expenses for FY 2016-17 as per the details provided in the table given above.
2.14 Depreciation
The Hon’ble Commission, in its order approved a net depreciation of Rs. 267.62
Crore after adjusting for depreciation on consumer’s contribution.
The actual opening GFA for FY 2016-17 is at Rs. 6,610.84 Crore and closing
balance is at Rs. 7,067.83 Crore; the corresponding gross depreciation for FY
2016-17 works out to be Rs. 300.42 Crore and net depreciation (after adjusting
for depreciation on consumer’s contribution and grants of Rs. 84.94 Crores)
comes out at Rs. 215.49 Crore. The Hon’ble Commission is requested to approve
the same.
2.15 Return on Equity
As per the available annual accounts of DHBVN for FY 2016-17; the RoE works
out to be Rs. 281.17 Crore. However, the Hon’ble Commission has been
disallowing any returns on equity in the past. The Petitioner would like to
submit that as per the Hon’ble APTEL Judgment dated 18th April, 2012 on
Appeal No. 102 of 2011, HVPNL was allowed ROE as per Regulation 17 of the
HERC (Terms and conditions for determination of transmission tariff)
Regulations, 2008, i.e. @ 14% per annum.
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Further it is submitted that not allowing any returns to the Nigam would result
in financial burden and financial stress to Nigam; therefore, the Hon’ble
Commission is requested to approve the return on equity @ 14% to the
distribution licensees as well.
2.16 Non – Tariff Income
The Non – Tariff Income approved by Hon’ble Commission for DHBVN in FY
2016-17 was Rs. 170.01 Crore. As per the available annual accounts of DHBVN
for FY 2015-16; the Actual Non-Tariff Income comes to Rs. 542.86 Crore.
The Nigam has not considered the delayed payment surcharge for FY 2016-17.
The Nigam submits that delayed payment surcharge is collected against the
receivables from the consumers that are not received in time. As there is a delay
in receiving the revenue, the Nigam has to procure additional working capital.
Therefore, the revenue received on account of delayed payment surcharges is
not income of the Nigam, rather it’s a carrying cost recovered from consumers
to pay the interest on the increased portion of working capital which occur
because of delay in receiving the revenue. Therefore, it is requested that the
revenue from delayed payment surcharge should not be considered as income
of the Nigam.
The Hon’ble Commission is requested to approve the same.
2.17 Expenditure due to other debts
It is submitted that as per the annual accounts of DHBVNL, there is an amount
of Rs. 200.28 Crore which includes amount Rs. 170.96 Cr on account of provision for
bad and doubtful debts, recorded under the head of other debts. The amount
consists of expenditure on account of revenue amount refunded, misc. losses
and written off amount as well as amount of unrealised surcharge from
consumer.
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
The Hon’ble Commission is requested to approve the same for FY 2016-17.
2.18 True up of RE subsidy
The total agricultural sales approved by the Hon’ble Commission in FY 2016-
17 were 9094 MU and against the same a subsidy of Rs. 5933.54 Crore for
DHBVN and DHBVN was allowed. This amounts to a per unit subsidy of Rs.
6.52/unit. Based on the feeder data, the actual agricultural sales, following
HERC methodology of 16% losses on AP Feeder data emerges to 4066.68 MU
for DHBVN and 5034.95 MU for DHBVN.
Therefore, for total sales of 9101.64 MU, the eligibility of subsidy emerges to Rs.
5,938.52 Crores (9101.64 MU*Rs. 6.52 per unit). Consequently, post true up, the
outstanding subsidy emerges to Rs. 4.98 Crore.
Table 11: True up of RE subsidy for FY 2016-17
Particulars FY 2016-17
Total RE subsidy allowed by HERC in Tariff order for 2016-17 (Rs Crs) 5,933.54
Total Agricultural sales approved by HERC in T.O (Mus) 9,094.00
Approved Per unit Subsidy (Rs./unit) 6.52
Agriculture Sales based on Feeder data minus 16% losses (Mus) UHBVN 4,066.68
Agriculture Sales based on Feeder data minus 16% losses (Mus) DHBVN 5,034.95
Agriculture Sales based on Feeder data minus 16% losses (Mus) 9,101.64
Eligibility of subsidy based on actual sales of 2016-17 (Rs. Crs) 5,938.52
Subsidy Outstanding/(Surplus) (Rs. Crs) 4.98
2.19 Summary of True up of FY 2016-17
The table below provides an overview of the difference between the approved
expenditure for FY 2016-17 under consideration vis-à-vis the actual expenditure
incurred by the Nigam.
Thus, the difference in approved and actual expenditure as per the summary
table below for DHBVN and DHBVN may be allowed to the distribution
licensees along with separate allocation of RE subsidy to the Discoms for FY
2016-17.
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Table 12: True Up of Expenses for FY 2016-17 (Rs. Crore)
Particulars Approved Actual Deviation
Total Power purchase cost 11,300.79 13,001.35 (1,700.56)
Power Purchase Expenses incl Inter State Transmission 10,632.55 12,328.56
Intrastate transmission charges and SLDC charges 668.24 672.79
Operations and Maintenance Expenses 1,171.04 1,239.76 (68.72)
Employee Expense 629.03 669.34
Administration & General Expense 73.86 82.18
Repair & Maintenance Expense 132.77 68.23
Terminal Liability 335.38 420.00
Depreciation 267.62 215.49 52.13
Total Interest & Finance Charges 216.52 959.74 (743.22)
Return on Equity Capital - 281.17 (281.17)
Other Expenses - 200.28 (200.28)
Total Expenditure 12,955.96 15,897.78 (2,941.82)
Less: Non-Tariff Income 170.01 542.86 (372.85)
Net Aggregate Revenue Requirement 12,785.95 15,354.92 (2,568.97)
Total Revenue 12,348.03
Revenue from Interstate sales 749.80
Revenue from Intrastate sales / Sale of Power 9,451.83
Revenue from FSA 2,146.40
Net Gap (3,006.89)
AP-Subsidy 3,965.32 2,643.54
GAP After AP Subsidy (363.34)
It is submitted that the Licensee has submitted the Expenses of FY 2016-17 based
on the actual annual accounts of FY 2016-17. Since the Hon’ble Commission in
its Tariff Order dated 1st August, 2016 has not provided bifurcation of some of
the revenue items between DHBVN and DHBVN, hence it is requested that the
Hon’ble Commission may kindly approve the appropriate Gap based on the
expenses and revenue as per annual accounts.
Further, the Hon’ble Commission has allowed a revenue Gap of Rs 672.14 Cr
along with holding cost of Rs 168.14 Cr in ARR of FY 2016-17. The final revenue
gap on account of True-up amounting to Rs. 2240.15 Cr along with carrying cost
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
has been taken forward in the approved ARR for the FY 2018-19.
Table 13: Final True up of FY 2016-17 in Rs Cr.
Particulars Amount in
Rs. Cr
True-Up of DHBVN after Subsidy (632.67)
True-Up of DHBVN after Subsidy (363.34)
Total True-Up Amount (996.01)
Revenue GAP FY 2014-15 approved by HERC (672.14)
Approved Carrying cost on above for 1 year and six months (168.04)
Total True-Up Amount (1,836.19)
Holding Cost (403.96)
True-Up Amount along with the holding cost (2,240.15)
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Chapter 3. Annual Performance Review for FY 2017-18 and Annual Revenue Requirement for FY 2018-19
3.1 Preamble
This chapter deals with the revised estimates for FY 2017-18 against that
approved by the Hon’ble Commission Tariff Order dated 11th July, 2017. In
order to undertake Annual Performance Review for FY 2017-18 on approved
Annual Revenue Requirement for FY 2017-18 and estimates for FY 2018-19,
various assumptions and other practical approaches have been taken into the
consideration. The same has been described in detail, while projecting each
component.
3.2 Capital Expenditure
The Hon’ble Commission vide order dated 11th July, 2017 has approved a Capex
Plan of Rs 1100 Cr. for FY 2017-18. DHBVN has estimated to undertake an
expenditure of Rs 1100 Cr as approved by the Hon’ble Commission in FY 2017-
18. In order to achieve the loss targets as proposed in the following chapters,
DHBVN propose a Capital Expenditure of Rs 1300 Cr for FY 2018-19.
The funding of capital expenditure in FY 2017-18 and FY 2018-19 is being
arranged by debt from REC, PFC and supported further from equity and
consumer contribution. The table below reflects the funding arrangement of
capital expenditure during the control period.
Table 14: Summary of funding of capital expenditure in FY 2017-18 and 2018-19
Capitalization Schedule FY 2017-18 FY 2018-19
Percentage Transfer of Capex into fixed asset 60% 60%
Percentage Transfer of Capex into CWIP 40% 40%
Total 100% 100%
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Further, the Details of Scheme wise CAPEX for the FY 2018-19 has been given
in the table below:
Table 15: Scheme Wise details for the FY 2018-19
Sr. No. Categories Quantity Unit Rate
(In Rs.) CAPEX
(Rs. In Cr)
1 AT&C loss reduction plan
a
Procurement of single phase meters for replacement of defective meters & release of new connections and procurement of Smart Meters.
7,30,000 Nos.
683 50.00
b
Procurement of three phase meters for replacement of defective meters & release of new connections and procurement of Smart Meters.
1,75.000 Nos.
1687 30.00
c Power Factor Improvement (Providing automatic power factor correctors)
16.00
d Providing of LT Capacitors on 400 KVA and above Distribution Transformers
33.00
2 Load Growth schemes
a Creation of new 33 kV sub-stations along with associated 33 kV & 11 kV lines
55 Nos. 3,00,00,000 150.00
b Augmentation of existing 33 kV sub-stations 57 Nos. 25,00,000 14.00
c Augmentation of existing 33 kV lines 70 KM 7,00,000 5.00
d Bifurcation of 11 kV feeders (Work of bifurcation of feeders, augmentation of ACSR).
391 Nos. 25.00,000 50.00
e Material required for release of Non-AP connections & replacement of old assets
171.00
f Release of Tube well connection on turnkey basis and segregation of AP load from Rural Urban feeders.
5000 Nos. 1,25,000 62.00
g
Procurement of power transformers and allied equipment such as 33 kV CTs, 33 kV PTs, 33 kV and 11 kV VCBs, 33 kV Control and Relay Panels etc.
45 Nos. (10 MVA)
05 Nos. (12.5 MVA)
4200000 (10 MVA)
5300000 (12.5 MVA)
28.00
H
Release of BPL connections under RGGVY schemes. Work already awarded for Palwal (9163 BPL Connections), Gurugram (2882 BPL Connections) and Faridabad (1494 BPL Connections) Circles on 15.11.2016, 31.01.2017 and 02.03.2017 respectively. Approximately 90% work likely to be completed in FY 2017-18 and provision has been made for taking care of remaining/residual works.
4.00
i 11 KV Lines 535.96 kms 21.98
j Distribution Transformer (63,100, 200
kVA) 850 Nos. 15.20
k LT ABC Line 182 kM 8.49
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Sr. No. Categories Quantity Unit Rate
(In Rs.) CAPEX
(Rs. In Cr)
l
Augmentation- DTR, Existing line on
conductor to ABXLPE, Augmentation of
11kV lines
157/926/771 11.90
m Metering (3 phase), Solar Energy Meter 2524 Nos. 1.46
n Solar Project 103 Nos. 0.84
3 R-APDRP schemes
a Implementation of R-APDRP (Part-A) 8.80
4 Other works
a
Maintenance free earthling using 'Ground Enhancing Material' for Distribution Transformers, Meter Pillar Boxes and H-pole etc.
6000 Nos.
5,000 3.00
b
Installation of meters on 33 kV Incomers at sub-stations for energy auditing. Work already awarded on 02.06.2017. Approximately 40% work already completed and provision has been made for taking care of remaining works.
350 Sub-Stations.
2.00
c Civil Works 10.00
d
Shifing of HT line (33 kv), passing over authorized/un-authorized colonies under jurisdiction of DHBVN. Note:-Hon’ble Chief Minister has made an announcement on the floor of Haryana Vidhan Sabha that all dangerous wires of 33 KV and above levels passing over the various colonies shall be removed. Accordingly, Worthy ACS/Power, Govt. of Haryana, Power Deptt. directed to prepare the detailed scheme in this regar. Also, Worthy ACS/Power, Govt. of Haryana, Power Deptt. has desired that it may be made part of the CAPEX Plan and approval of HERC be obtained.
7 Nos. 33 KV lines under Rewari and
Narnaul Circles
5.00
e Mahara Gaon Jagmag Gaon scheme for rural area and feeder sanitization for Urban area/LRP/Replacement of iron pole.
190.00
f Other works for system improvement - Procurement of IT Equipment & Softwares
8.00
g Smart City Gurgaon (HT & LT Lines, DTs, U/G Cables, RMUs and FRTUs Etc.) including SCADA Project, IMT, Manesar (Rs. 24 Crores)
235.00
h Smart City Faridabad, Hisar & Rewari (HT & LT Lines, DTs, U/G Cables, RMUs and FRTUs Etc.)
68.00
i Shifting of 11 lines passing over residential areas under DHBVN.
20.00
J Works under EESL (Smart Meters) 220000 Nos. 2500 55.00
Total 1277.67
B) CAPEX under UDAY (Ujjwal DISCOM Assurance Yojana)
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Sr. No. Categories Quantity Unit Rate
(In Rs.) CAPEX
(Rs. In Cr)
1
Scaling of IT project to Non-RAPDRP areas covering the following: - 1. Establishment of IT infra in SDO & Other offices and its connectivity with Data Centre. 2. AMR for Non-RAPDRP feeders. 3. DT metering for 2953 in Non-RAPDRP areas. 4. AMR for HT & LT CT operated meters. Total DPRs cost for the above works is Rs. 20.55 Crores and approximately, 60% expenditure is likely to be incurred during FY 2018-19.
12.33
2 Boundary meters for Villages in Rural Areas (3648 number of villages i.e. 7296 meters)
3648 meters 40000 10.00
Total 22.33
Grand Total 1300.00
3.3 Transmission and Distribution Losses.
The Hon’ble Commission vide its Tariff Order dated 11.07.2017 has approved a
AT&C loss of 22.48% for DHBVN for the FY 2017–18 which is in accordance
with the targets laid down in the UDAY MoU. Against the committed AT&C
losses of 22.48% % for FY 2016-17 in the UDAY MoU, the Discoms have been
able to achieve actual AT&C loss level of 21.14%. Further, as per the UDAY,
MoU both the Discoms were required to achieve an AT&C loss level of 15% for
the FY 2018-19. As such a loss reduction of approx. 6% has to be achieved during
the current financial year to meet the UDAY targets.
In view of above, DHBVN has considered a realistic AT&C target of 18.76% for
FY 2017-18 and 15.00% for the FY 2018-19.
3.4 Capital Work in Progress
Capital work in progress (CWIP) has been calculated as shown below:
Average Indexation n-1 (Index * Wt.) 51.08 154.55 205.63
Average Indexation for FY15-16 111.62 275.92
Average Indexation n (Index * Wt.) 50.23 151.75 201.98
Combined Inflation (Indxn. /Indxn-1) 1.80%
DHBVNL submits herewith that as per the calculations tabulated above, the
applicable combined inflation indices, after taken considerations of weightage
average ratios of WPI & CPI of 45:55 of FY 2016-17 and FY 2017-18 has been
computed as 1.80 %, and the same has been put into the calculations of O&M
Expenses, discussed in consecutive paras of this submission.
3.11 Employee Expenses
The employee expenses primarily include costs towards salaries, dearness
allowances, bonus, staff welfare and medical benefits, leave travel and earned
leave encashment, and the terminal benefits in the form of pension, gratuity etc.
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The Inflation Index of 1.80% as indicated in above table has been considered
over FY 2016-17 to arrive at employee cost for FY 2017-18 and FY 2018-19. The
petitioner has projected Employee Expense of Rs 884.90 Cr and Rs 820.03 Cr
respectively.
The petitioner has also projected the amount paid for terminal benefits, as Rs.
301 Crores for FY 2017-18 and Rs 343.25 Cr for FY 2018-19.
Further, an additional increase of 12% has been assumed in the employee cost
on account of 7th pay commission recommendations. Hence, the employee cost
for
FY 2017-18 has been escalated by 3% on normative value and Rs 90 Cr. Has been
added as onetime expense towards payments for arrears of 7th Pay
Commission.
Table 23: Employee Expenses for FY 2018 and FY 2018-19 (Amt. in Rs. Crores)
Particulars FY 2017-18 FY 2018-19
Salaries 576.58 501.18
Dearness Allowance 24.33 25.06
Other Allowances 296.41 305.30
Terminal benefits 301.00 343.25
Gross Employee Expense 1,198.32 1,174.79
Less Expenses Capitalised 12.42 11.51
Net Employee Expenses 1,185.90 1,163.28
We request the Hon’ble Commission to approve total employee cost for FY
2017-18 and FY 2018-19 as per above tabulated computation.
3.12 Repair & Maintenance Expanses
The petitioner has projected R&M expenses for FY 2017-18 and FY 2018-19, as
per the formula specified in HERC MYT regulations, 2012 and same has been
quoted again as below:
(a) R&Mn= K * GFA * INDXn / INDXn-1
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Where,
• ‘K’ is a constant (expressed in %) governing the relationship between O&M
costs and Gross Fixed Assets (GFA) for the nth year. The value of K will be
1.65% for DHBVN and DHBVN respectively for the entire control period;
• ‘GFA’ is the average value of the gross fixed asset of the nth year.
• ‘INDXn’ means the inflation factor for the nth year as defined herein after.
The petitioner has projected R&M expenses for FY 2017-18 and FY 2018-19, on
the applicable/ approved average GFA of DHBVNL with the appropriate
inflation factor i.e. 1.80%, tabulated as below:
Table 24: R&M Expenses for FY 2018 and FY 2018-19 (Amt. in Rs. Crores)
Particulars FY 2017-18 (Projected)
FY 2018-19 (Projected)
Average GFA for Previous Year 7,715.28 8,993.11
K factor 1.65% 1.65%
Indexation % 1.80% 1.80%
R&M Expenses 129.60 151.06
R&M Expense has been projected @ 1.80% inflation factor for FY 2017-18 and as per MYT Regulations 2012, the K factor being considered 1.65% at average GFA
We request the Hon’ble Commission to approve total R&M expenses for FY
2017-18 and FY 2018-19 as per above submission.
3.13 Administration & General Expenses
Administration and General expenses mainly comprise costs towards rent
charges, telephone and other communication expenses, professional charges,
conveyance and travelling allowances and other debits.
As per MYT Regulations, 2012, the Inflation factor of 1.80% has been considered
over FY 2016-17 to arrive at A&G cost for FY 2017-18 and FY 2018-19. The
computation of A&G cost considering expenses works out to as below:
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Table 25: A&G Expenses for FY 2018 and FY 2018-19 (Amt. in Rs. Crores)
Particulars FY 2017-18 FY 2018-19
Gross A&G Expenses 90.43 92.07
Indexation (%) 1.80% 1.80%
Net A&G Expenses 92.07 93.73
Less: Expenses Capitalised 8.40 8.55
Administrative and General Expense 83.67 85.18
DHBVN prays the Hon’ble Commission to approve total A&G expenses for FY
2017-18 and FY 2018-19 as per above submission.
3.14 Summary of O&M Expanses
The summary of projected O&M expenses for FY 2017-18 and FY 2018-19 is
tabulated below for reference:
Table 26: Summary of O&M Expenses for FY 2018 and FY 2018-19 (Amt. in Rs. Crores)
Particulars FY 2017-18 (Projected)
FY 2018-19 (Projected)
Employee Expense 884.90 820.03
A&G Expense 83.67 85.18
R&M Expense 129.60 151.06
Terminal Benefits 301.00 343.25
Total O&M Expenses 1,399.16 1,399.52
DHBVN prays the Hon’ble Commission to approve total O&M expenses for FY
2017-18 and FY 2018-19 as tabulated above.
3.15 Interest & Finance Charges
As per Regulation 21 of HERC (Terms and Conditions for Determination of
Tariff for Generation, Transmission, Wheeling and Distribution & Retail
Supply under Multi Year Tariff Framework) Regulations, 2012; Interest on
Loan Capital for existing loans shall be computed loan-wise and for new loans
it shall be equal to the base rate of SBI as applicable on 1st April of the relevant
financial year. The relevant regulations are provided here for ease of reference:
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Regulation 21.1 Existing Loans
(i) Interest on loan capital shall be computed loan-wise for existing loans
arrived in a manner specified in Regulation 19 and shall be as per the
rates approved by the Commission.
(ii) The loan outstanding as on 1 s t April of each financial year shall be
worked out as the gross loan in accordance with regulation 19 by
deducting the cumulative repayment as admitted by the Commission up
to 31st March of previous financial year from the gross normative loan;
(iii) The rate of interest shall be the weighted average rate of interest on
institutional loans calculated on the basis of the actual loan portfolio at
the beginning of each year applicable to the project. In case the weighted
average rate is not available, the interest rate approved by the Commission
in its earlier tariff order shall be allowed.
Provided that if there is no actual loan for a particular year but normative
loan is still outstanding, the last available weighted average rate of interest
shall be considered;
Provided further that if the generating plant/project does not have actual
loan, then the weighted average rate of interest of the generating
company/licensee as a whole shall be considered
(iv) The interest on loan shall be calculated on the normative average loan
of the year by applying the weighted average rate of interest;
(v) The generating company and the licensee shall from time to time review
their capital structure i.e. debt and equity and make every effort to
restructure the loan portfolio as long as it results in net savings on
interest. The costs associated with such re- financing shall be borne by the
beneficiaries and the net savings (after deducting the cost of re- financing)
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
shall be subjected to incentive / penalty framework as mentioned in the
regulation 12 which shall be dealt with at the time of mid-
year performance review/true-up.
(vi) The changes to the loan terms and conditions shall be reflected from the
date of such re- financing and benefit passed on to the beneficiaries;
(vii) In case of any dispute relating to re-financing of loan, any of the parties
may approach the Commission with proper application along with all the
relevant details. During the pendency of any dispute, the beneficiaries
shall not withhold any payment on account of orders issued by the
Commission.
(viii) In case any moratorium period on repayment of loan is availed of by
the generating company or the licensee, depreciation provided for in the
tariff during the years of moratorium shall be treated as repayment during
those years and interest on loan capital shall be calculated accordingly.
Regulation 21.2 New Loans (on or after 6th April 2013)
(i) Rate of interest on new loans shall be equal to the base rate of SBI as
applicable on 1st April of the relevant financial year plus an appropriate
margin that realistically reflects the rate at which generating company or
the licensee can raise loans from the market. They shall however, be required
to submit due justification to the Commission for the terms and conditions
of the loans raised by them.
Provided that interest and finance charges on works in progress shall be
excluded and shall be considered as part of the capital cost;
Provided further that neither penal interest nor overdue interest shall be
allowed for computation of Tariff
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
(ii) Any variation above or below the allowed interest rate shall be subject
to the incentive and penalty framework specified in regulation 12.
(iii) The amount of loan shall be arrived in the manner as specified in
regulation 19 and shall be based on the approved capital investment plan.
(iv) In case any moratorium period on repayment of loan is availed of by the
generating company or the licensee, depreciation provided for in the tariff
during the years of moratorium shall be treated as repayment during those
years and interest on loan capital shall be calculated accordingly.
Interest on Capex Loan to be raised for the ensuing control period:
It is estimated that 78% of the CAPEX i.e. Approved CAPEX Rs 1100 Cr. for FY
2017-18 and Rs 1300 Cr for FY 2018-19 would be made through loans from
various Lending agencies. It is estimated that the fresh loans would be serviced
at the rate of 11.50% per year. The Detailed calculation of interest on CAPEX loan
has been given at the Table: 28 and 29
Interest on Consumer Security Deposit:
Payable @ 6.50% (per annum on average opening and closing balance. The
petitioner submits that Interest on Security Deposit amount has been claimed as
per the provision of MYT Regulations, 2012.
As per Para 21.4 of MYT Tariff Regulations, dated 26/12/2012,
“Interest shall be allowed on the amount held as security deposit held in cash from
Transmission System Users, Distribution System Users and Retail consumers, at the
Bank Rate as on 1st April of the financial year in which the petition is filed provided
it is payable by the transmission/distribution licensee. “
The details of Interest on the Consumer Security Deposit has been given in the
table below:
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Table 27: ICD of FY 2017-18 and FY 2018-19
Description FY 2016-17 FY 2017-18 FY 2018-19
No. of consumer 31,27,872 32,34,438 33,45,382
Deposit per consumer 3,667.57 3,569.80 3,618.69
Security Deposit 1,147.17 1,154.63 1,210.59
Interest Rate 1.62% 6.50% 6.50%
Interest on security deposit 18.63 74.81 76.87
Interest Capitalized:
It is based on proportion of 60% of the asset capitalized over the opening CWIP
and capex added during the year;
Interest on Working Capital Loan:
It is also pertinent to mention that the Government of India has notified Ujwal
Discom Assurance Yojana (UDAY) scheme for operational and financial
turnaround of power distribution companies (DISCOMs), on 20th Nov 2015
under which State shall take over 75% of Discom debt as on 30th September,
2015 over two years – 50% of Discom debt shall be taken over in FY 2015-16 and
25% in FY 2016-17. The implementation of UDAY leads to changes in the
projections of interest and finance charges for the Discoms which had an impact
on the revenue requirement of the Discoms.
It is submitted that the first tranche of UDAY bonds against 50% of the debt as
on 3.9.2015 amounting to Rs. 17300 crore has been issued, after the finalization
of the loans to be taken over under this tranche and the terms and conditions of
the UDAY bonds. Now the second tranche has also been taken over towards
25% of the debt amounting to Rs. 8650 crore.
The major provisions of the UDAY scheme that have been taken into the
account while preparing the revised ARR:
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Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
➢ 75% of outstanding debt as on 30.09.2015 to be taken over in the form of
equity / loan / Grant to DISCOMS.
➢ Take-over in year 1: 50%, Year 2: 25%
➢ Take-over assumed at the end of second quarter from year 2
➢ Total Loan of Rs. 13003 Crore for DHBVN has been assumed to be taken
over by the Govt. of Haryana under UDAY scheme including the FRP
loans as well as HVPNL liabilities.
➢ The Bonds have been issues at an coupon rate of 8.21%
➢ ROI of balance 25% loan: Base rate+0.1% w.e.f. 01.04.2016 at present 9.80%
(Bank rate of lead bank (OBC).
Therefore, in order to operationally and financially turnaround the discoms, the
Hon’ble Commission must consider the interest on the UDAY Bonds and loan
considered under UDAY and other loan as the interest of the same is borne by
the license and the disallowance of it would lead to unnecessary financial
burden on the already financially distressed discoms. The Details of the year
wise Interest has been given in the table below:
Nov-17 Page 60
Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Table 28: Loan Profile and interest Liability of the Nigam for FY 2017-18 (Amount in Crores)
gradation of IT Skills, Operation & Maintenance of Distribution Transformer, Prevention of
failures and repairs, Safety, accident prevention and Disaster Management etc.
Nov-17 Page 83
Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
During the last financial year, training of 882 numbers of employees has been conducted at
HPTI, Panchkula. Moreover, Nigam has sent 52 numbers of Class-I & II employees to the
prominent institutes of India under the specialised training program.
However, in regard to skillset up-gradation of staff, pertaining to rapid technological changes
and implementation of various schemes such as R-APDRP, Smart Metering and Smart Grid
technologies, Nigam is imparting the regular training to field staff under RAPDRP Wing.
Whereas, training in respect to GIS, MDAS and other modules of RAPDRP, the officials of the
Nigam are being given special with the help ITIA as well as TPDDL experts.
Furthermore, it is submitted that at corporate level, team of subject matter experts have been
created under the R-APDRP wing. These teams are designated to RAPDRP offices to provide
online support to carry out the day in day out operational activities.
Nigam submits that a formal training program for the staff, covering the latest technological
trends in the domain of Smart Metering and Smart Grid will be formulated in consultation
with the agencies engaged in pilot projects and successful commissioning of the same.
4 Development to centralised billing system for consistency in
billing. Integration of Adhar No. with billing system and
submission of compliance report within three months.
Nigam submits that the centralised billing system has already been in place. In RAPDRP areas
billing is being carried out by M/s HCL, whereby in Non RAPDRP billing is done by M/s
HATRON. The matter is under consideration of management to shift the Non-RAPDRP area
billing to the R-APDRP platform.
Furthermore, following initiatives have been taken to reduce the human error and to increase
the accuracy in billing system: -
• New connection/load extension cases are being processed through online portal.
Nov-17 Page 84
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Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
• Implementation of Meter reading of consumers via Hand held device has been
implemented and this will help in capturing all the billing parameters (kWh, kVAh,
MDI) and hence will help the Nigam in analysing the accurate meter details
immediately after the current billing cycle.
It is further submitted, that in order to incorporate the KYC details of consumers into the
billing system the KYC details collection campaign is being run either by Nigam’s own or
outsourced resources. Moreover, Nigam has appointed M/s Pragya-ware for integration
KYC matrix in billing system and further authentication of consumer AADHAR number and
other contact details from UIDAI.
5 Discoms to take up the matter of clearing pending electricity bill
dues of government department with the State Government.
Progress on the same to be update to Commission.
Nigam submits that the matter of outstanding electricity bill dues of Govt. Departments has
been taken up with the worthy APSCM of State Government in a meeting held on date 14th
March 2017. It was instructed to Govt Departments to clear their pending electricity bills dues
outstanding with DISCOMs. In this line, State Govt. Departments have submitted a request
specifying that the matter of surcharge waiver has been taken up with the Hon’ble Chief
Minister, Government of Haryana. The proposal of one-time surcharge wavier has been
approved by Chief Minister and same has been forwarded to the Finance Department for
making necessary provisions in the budget of govt. Departments for clearing the outstanding
electricity dues.
Presently, the outstanding amount pending with the Govt. Departments is Rs. 875.38 Crores
(till September, 2017), out of which Rs. 453.57 Crores correspond to surcharge. The details of
defaulting amount corresponding to various Govt. departments is provided as under: -
Nov-17 Page 85
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Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
(Figures are in Rs. Lac)
Govt. Department No. of
Defaulters Principal Amount
Surcharge Amount
Total
Irrigation 903 2472.3 32737.76 35210.06
P.W.W. 4936 9635.51 2831.38 12466.88
MC's/M. Corp. 2661 22118.86 7447.5 29566.36
Panchayat 1355 1236.07 555.49 1791.56
Others 3330 6717.95 1785.2 8503.15
Total 13185 42180.69 45357.32 87538.01
6 Launching of promotional campaign for Roof Top Solar PV
installations through local TV and Newspapers. Also, collection
of feedback from consumers to understand the
bottleneck/difficulties in overall implementation process.
Based on feedback being received from the consumers/ channel partners approved by MNRE
a simplified procedure/guideline were formulated and already stand circulated vide Sales
Circular D-18/2016. To disseminate proper awareness among the concerned Nigam officers
regular training program is being organised, so that the applicants do not come across of any
difficulty while applying for Net Metering connection. The underlying benefits of the scheme
are being propagated in various interactive meeting held with RWA/Industrial Association.
7 Exploration of possibilities to appointment Gram Panchayat as
retail supply franchisee (under section 13 of EA, 2003) for
improvement of service to the consumers and providing single
point supply connection to such at bulk supply rate.
It is submitted that the Nigam is exploring the possibility of appointment of Gram Panchayats
as retail supply Franchisee. A proposal in this regard was sent to the Hon’ble Commission.
While approving the proposal, the Hon’ble Commission stated that the energy to such
Panchayats Institutions may be made available by the Discoms at the bulk supply rate (cost
of power at Discoms periphery). However, as both these rate i.e. bulk supply rates and cost
of power at Discom’s periphery are different, a reference has been made to the Commission
for seeking clarification regarding the rates to be applicable for supply of energy in case of
such Gram Panchayats/retail supply franchisees.
Nov-17 Page 86
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Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
8 Analysis of Domestic & Non-Domestic consumption pattern of
past three years and identification of cases warranting load
extension. Also, issuance of notice to consumers for voluntary
enhancement of load within a set time frame and allowing
security deposit submission in instalments to such consumers.
The requisite logic in billing software is being worked out and appropriate action will be
taken thereof within two months.
9 Payment of interest on security deposit to consumer in next
billing cycle. Also, detail of unclaimed security deposit to be
furnished by the Nigam, where consumer has discontinued the
receiving of supply. Further, appropriate action on the same
should be taken as per the accounting practise within six
months.
Nigam submits that the payment of interest on Advance Consumption Deposit (ACD) is
already functional in R-APDRP areas. However, in Non-RAPDRP areas, payment of ACD has
been made to all consumers falling under Domestic and Non-Domestic category. It is further
submitted that on submission of legitimate proof regarding the discontinuation of electricity
supply by the consumer, Nigam credits the ACD amount to the consumer. Nigam has also
directed to all circle officers to integrate the unpaid ACD details into the billing system where
consumer have relinquished the electricity supply connection from the Nigam.
10 Release of AP Tube-well connection under Tatkal Scheme is still
under pendency, a status notes on the same to be submitted
within 30 days.
Nigam is striving hard to clear the backlog /pendency of release of AP connection under
Tatkal Scheme. AP Tube-well supply connection work is now being executed through
empanelled contractors of 11 kV works under EOI-09. It is submitted that Nigam will clear
the pendency of release of AP Tube-well connections under Tatkal Scheme within two
months of time. Nigam further ensures that the fresh AP Tube-well connection under the
Tatkal Scheme will be released in time bound manner as specified by the Hon’ble
Commission in relevant Regulations.
Applications received for AP Tube-well connection under Tatkal Scheme are of 9494 in
numbers as on 30th September, 2017. Out of the total application received, Nigam has released
7540 Nos of connections and the remaining 1954 applications are under the process. Circle-
wise Progress of Tatkal Scheme uptill September, 2017 is as under:
Nov-17 Page 87
Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
Circle Application
Received (Sep’17)
Connections
Released (Sep’17)
Balance
Connection
Faridabad 219 180 39
Palwal 555 364 191
Gurugram-1 3 2 1
Gurugram-2 99 67 32
Narnaul 1192 1013 179
Rewari 426 308 118
Bhiwani 1712 1430 282
Hisar 598 529 69
Fatehabad 1354 1286 68
Sirsa 2205 1538 667
Jind 1131 823 308
DHBVN 9494 7540 1954
11 Appointment of adequate manpower (positioning of Chairman
& Members) and strengthening of CGRF office facilities within
two months.
It is submitted by the Nigam that appointed adequate manpower in Consumer Grievance
Redressal Forum (CGRF). Nigam has deployed one Superintending Engineer and Chief
Accounts Officer as the Chairman and Members of the Forum, respectively at corporate office
Hisar. Additionally, one member and secretary of the forum has also been posted at HERC,
Panchkula. Nigam has provided adequate manpower and facilities to ensure that CGRF
should be strengthen appropriately.
12 Discoms are direct that post lying vacant for more than two
years shall not be filled without prior approval of the
Commission. However, a report to be submitted by the Nigam
Nigam submits that no recruitment has been made without any prior from approval from the
State Government. However, appointment of staff for sanctioned 511 Nos of non-technical
Nov-17 Page 88
Petition for True up of FY 2016-17, APR FY 2017-18 and ARR for FY 2018-19
Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
regarding the abolishment of non-technical post lying vacant for
more than two years in compliance to the direction issued in
post three Tariff Orders of the Commission. Compliance report
to be submitted within 45 days to the Commission, failure in
doing so will result in disallowance of such expenditure in
subsequent ARR.
posts is made in accordance with the provisions specified under Part II of the Outsourcing
Policy.
Currently, no such non-technical posts are lying vacant from last two years. Moreover,
requisitions for the appointment of 761 Nos. of non-technical posts have been sent for
recruitment to HSSC-Panchkula, with the approval from the Govt of Haryana.
It is further submitted that total of 380 Nos. of non-technical posts was abolished by the
Nigam, on account of creation of 181 Nos. IT cadre posts, as approved by HBPE, Finance
Dept. of Haryana.
13 To promote the digital payment, Nigam has to bear the
transaction charges (Merchant Discount Rate) levied by the
bank on online transactions made through payment gateway.
Further the consumers in urban areas, those having bill of
amount Rs 10,000 and above can make the payment of electricity
bill either through above payment modes or from RTGS/NEFT
and the bank authorised by the Nigam.
In compliance of the directions issued by the Hon’ble Commission, an instruction has been
issued by the Nigam that the transaction charges (MDR) on the payment made through
payment gate-way, net-banking, e-wallet, POS/swipe machine etc. or by way of credit &
debit card, net banking, is being borne by the Nigam with effect from 1st November 2017.
14 Facilities like downloading of bill from website and providing
the bill details through SMS & e-mail shall be extended without
any charges, to consumers having load more than 10kW and
above. Further in order to encourage environmental
consciousness among the consumers, facility for exercising the
option of “No Hard copy of Bills” shall be made available on
website.
Nigam has provided the facilities of downloading electricity bills from Nigam’s website and
sending bill details through SMS in RAPDRP areas, to all the consumers having load 10 kW
and above. Moreover, facility of sending bill alerts through SMS is also available in Non-
RAPDRP areas. However, possibility of mailing and downloading electricity bills from
website of the Nigam, are being explored for consumers in Non-RAPDRP areas.
Furthermore, the awareness among the consumers to download electricity from e-mail or
website is being carried out by the Nigam through the KYC details collection campaign, run
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either by its own or outsourced resources. Option of “No Hard Copy of Bills” shall be
provided to the consumers, once substantial awareness spread out among the consumers.
15 To run an extensive campaign for voluntary give-up of AP
Subsidy through electricity bill/SMS/e-mail, for the consumer
having annual income more than 20 lakhs annually.
Nigam submits that at present the consumer data collection is under the process through KYC
details integration in the billing system and Nigam will subsequently use the same to run its
campaign for Voluntary Give-Up Subsidy of AP Consumer.
16 In view of heavy expenditure, shortage of technical staff and
over staffed non-technical staff, Discoms have to take up actions
for re-structuring of staff in compliance to the directives issued
in Tariff Order dated 1st August, 2016. Discom, to take up the
matter of restructuring with the State Govt and to submit the
status of the same to the Commission.
It is submitted that the Nigam has formulated a Committee for restructuring of the staff.
Meeting of the committee members are being held on regular basis. Nigam is trying to devise
some cost-effective approach for staff-restructuring and will subsequently present the
detailed proposal to the State Government for in principle approval.
17 Compliance to the directives and issuance of sale relevant
circulars in shall be done within the time limit specified for the
purpose.
Nigam submits that the relevant sales circulars have been issued and uploaded on the
website, immediately after the publication of the HERC Tariff Order dated 11th July 2017.
18 Discom may explore for the alternatives like providing of
distribution franchisee to other companies to reduce the line
losses and financial losses, considering the interest of public in
large.
Nigam submits that it is making its best efforts to reduce down the line losses and financial
losses. Nigam has made significant technical loss reduction over the past years. Technical
losses of Nigam have been reduced by 13.03% from FY 2002-03 to FY 2016-17. Nigam have
initiated loss reduction schemes across the license area. In urban areas works have been
carried out under feeder sanitisation scheme and in rural area the same is carried under
Mhara Goan Jagmag Goan (MGJG) scheme. Nigam have done substantial loss reduction of
13.80% in the loss level of 57 Nos RDS feeders undertaken in MGJG. Moreover, the current
line loss level of Nigam is 19.75% which will be aligned with UDAY loss trajectory by the end
of the financial year. Further, in the direction of minimising the technical and commercial
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losses, Nigam is in process of implementing the Centralised billing system across the licensee
area, installation of energy efficient equipment like LED Bulbs & 4 Star rating AP Motors
under DSM initiatives, roll out of Smart Metering and Smart Grid project under technological
changes. Rigorous efforts are being made by the Nigam to safeguard public interest and
enhance consumer satisfaction, simultaneously.
19 Circle wise details of the consumer having double supply
connection along with the suitable justification shall be
provided to the Commission
Nigam submits that in general there are no such case of double connection supply. However,
double supply connections were issued earlier to building of state importance considering
the power supply condition during that phase. So far, double supply connections have been
eliminated from the system, due to robust distribution network and supply conditions. It is
further submitted that Nigam will take the appropriate action, if any such cases comes into
notice at any point of time.
20 Identification of DSM Plan and submission of same to
commission for consideration.
Nigam submits that it has implemented ToU/ToD tariff vide Sales Circular No. D- 29/2017
dated 17.08.2017 which will encourage the consumer to opt for power from Nigam at lower
tariff thereby contributing to flattening of load curve. Nigam has also taken various other
initiatives for Demand Side Management which are given here under: -
• Nigam has made mandatory to install 4 star rated motors and transformers. • Rebate on electricity bill is also provided to consumer those has installed Solar Water
Heater. • As per Sales Circular No. D-10/2017, installation of Solar photovoltaic power plant
mandatory for specified category of building/area. • Nigam has run the campaign with the name of UJALA, under which more than 66.96
lacs florescent lamps have been replaced with LED lamps leading to reduction of peak demand of more than 300 MW.
• Nigam is also implementing Smart Metering in four towns.
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21 The distribution licensees are directed to explain the reason of
under achievement even after re-fixing of their distribution loss
level/AT&C loss trajectory envisaged under UDAY scheme.
To achieve the targeted distribution loss levels/ AT&C loss trajectory set under UDAY
scheme, the NIGAM has undertaken various initiatives like Urban Feeder Sanitization, Rural
Domestic Feeder Sanitization under MGJG Scheme, theft detection, MRBD through Hand
Held Device etc. A YoY comparison of targeted Distribution loss and Loss level actually
achieved is as under:
AT&C Loss (%) FY 2015-16 FY 2016-17 FY 2017-18
Projection 25.22 % 22.48 % 18.76%
Actual 26.45 % 21.14% -
Gap 1.23 % -1.34% -
From the above table, it is evident that the loss target of FY 2016-17 has been comprehensively
achieved by the Nigam, AT&C losses during the year were brought down to the level of
21.14% against the projection of 22.48%. Further, in order to bring down the loss level of RDS
feeders, MGJG scheme is under implementation in phased manner and the Distribution losses
of the feeders covered and completed under MGJG scheme have been reduced significantly.
The scheme is being implemented in phased manner even with the stiff resistance from the
consumers of Rural Areas. Support of district administration is also being taken for
implementation of the aforementioned scheme. Overall impact on the achievement of AT&C
loss target under MGJG Scheme will be visible after completion of work on all Rural Domestic
Feeders.
Following steps have been taken by the Nigam to reduce technical and commercial losses
with specific focus on long term improvement in the power quality/reliability.
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• Discoms has constituted theft detection teams to reduce commercial leakages through theft/pilferage. There has been significant increase in number of theft cases booked in theft, when compared year on year basis:
Financial Year Theft
Detected (Nos)
Assessment Amount (Rs. Lac)
Realization Amount (Rs. Lac)
2014-15 16,273 4,719.11 2,547.11
2015-16 24,904 8,533.78 3,916.21
2016-17 41,275 10,105.50 4,240.92
2017-18 (H1) 39,440 12,047.47 4,670.93
• The outstanding arrears are being recovered by launching arrear recovery scheme and by assigning arrear recovery targets to the subdivision.
• Feeder Sanitization activities are being carried out geographically as: 1. Urban Feeder Sanitization 2. Mahra Gaon Jagmag Gaon Scheme.
In both the Schemes, NIGAM has focused on the following: -
➢ Accurate meter reading via replacement of defective, electromechanical and old version meters.
➢ Minimizing occurrence of theft of energy via relocation of meter from inside of the consumer premises to outside on the poles.
➢ Preventive measures to eliminate direct theft of energy by replacing ACSR, bare conductor with LT AB Cables in theft prone areas.
➢ Release of new connection in un-electrified household, unauthorized colonies to bring them in the billing net.
• Meter Reading of consumers through Hand Held device - DISCOMs have introduced Meter Reading for all consumers through Hand Held Device. The meter reading of the consumers will be downloaded directly to Hand held device without any manual/human intervention. The loss of units due to malpractice or human error will be mitigated by this
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process which will result in improvement of billing efficiency. At present, the work for Meter reading activity has been allotted to firms. All the subdivisions have been rolled out under MRBD Scheme.
• IEC (Information, Education & Communication Campaign) for MGJG scheme of UHBVN/DHBVN for a period of 3 months as a pilot project launched w.e.f. 06.07.2017
With the above initiatives DISCOM will strive hard to achieve the milestones set in the
upcoming year.
Outcome/ Impact of MGJG Scheme
Under MGJG Scheme 56, 80, 128, 142 & 25 (total 431) RDS feeders were selected under Phase
I, II, III, IV & IV-A respectively. Work on 77 feeders has been completed till 31st March 2017.
Analysis of losses on 57 feeders has been carried out & the comparison is attached as
Annexure-I. From this analysis, there is increase in units billed by 270.90 LUs and reduction
in losses by 13.80% as compared to the figures of corresponding period of previous year.
Further efforts are also being made to reduce the losses by way of sanitization of completed
feeder.
21 The Commission also directs the distribution licensees to bring
down the total number of rural feeders with line losses above
50% as on 31.03.2017 to half and to bring down the losses of all
urban feeders below 25% by the time of next ARR/APR filing.
The distribution licensees are further directed to file report on
the status of losses on each of these feeders and also
prominently display them on their website (Page-222).
The status of RDS feeders having distribution losses more than 50% in rural area and Urban
feeders having distribution losses more than 25% in urban area for FY 2015-16 and FY 2016-
17 is tabulated as under:
RDS Feeders FY 16 FY 17 FY18
(Sept’17)
Total no. of RDS Feeder 812 887 926
Total no. of RDS Feeder having losses
above 50% 539 562 561
Percentage of total feeder having losses
above 50% 66.37% 63.36% 60.58%
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Urban Feeders FY 16 FY 17 FY18
(Sept’17)
Total no. of Urban Feeder 718 728 734
Total no. of Urban Feeder having losses
above 25% 206 159 156
Percentage of Total Feeder having losses
above 25% 28.83% 21.84% 21.25%
The above status i.e. list of feeders for FY 2016-17 Annexure-II is available on the website of
DHBVN. Also, from the above table, it can be observed that although the number of feeders
having losses above 50% in Rural areas has slightly been increased during FY 2017-18, but
same will be eventually be improved after completion of ongoing loss reduction program
under MGJG scheme. Whereas, the total nos. of urban feeders having losses more than 25%
have been declined prominently during the FY 2016-17 and the percentage of such feeders
has reduced from 28.83% to 21.84%. The percentage of Urban Feeders having losses above
25% is likely to be decreased during FY 2017-18 due to ongoing loss reduction programme.
Further, in order to reduce feeder losses, Nigam has taken various Loss Reduction Program
(LRP). In the urban areas, LRP is taken under Urban Feeder Sanitization and in Rural area
same is under Mhara Gaon Jagmag Gaon (MGJG) Scheme. The activities involve the
following: -
• Meter Replacement (Tampered/Defective/Faulty/Old Version/ Electromechanical)
Meter Relocation (Meters lying inside the premises to outside/on poles)
• AB Cabling (ACSR replacement in theft prone areas)
• New Connections (Unauthorized colonies/ connections)
As these are on-going activities, the result will be visible at the culmination of the activities
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Sr. No. HERC Directives for FY 2017-18 Submission to Commission Directives
22 The HERC vide its Regulation (Standards of Performance for
Distribution Licensee) Regulations 2004, has specified the
failure rate of distribution transformers as maximum 5% for
urban area DTs and maximum 10% for rural area DTs.
The Commission again directs the licensees to examine the
cause of damage of DTs in the areas where it is above the norms
and endeavour to bring down the distribution transformer
damage rate below the prescribed limits by ensuring proper
maintenance and protection (Page-227).
The percentage DT failure rate (excluding warranty period) during
FY 2016-17 vis-à-vis during FY 2017-18 (up to September 2017) is as under:
Area FY 2016-17 FY 2017-18 (Sept,17)
Rural 6.67% 3.85%
Urban 3.26% 2.56%
Overall 6.31% 3.71%
Furthermore, the Nigam submits that the proper maintenance of the DT as per the
maintenance schedule, load balancing, and installation of proper fuse will not only further
reduce the failure rate but also will help in betterment of the efficiency of the DT. Moreover,
the SDOs of different operation circles under the jurisdiction of DHBVN has been given
special power to purchase petty equipment upto Rs. 1 lac per month for the repair and
maintenance work for HT, LT lines and DTs. Thus, the aggregate transformer damage rate in
FY 2017-18 is expected to be well below the figures of 2016-17.
23 “All the EM meters exist in the urban areas should be replaced
by December, 2017. 50% of EM meters exist in rural areas should
be replaced by December, 2017. The licensee should endeavour
to replace the EM in a systematic manner by taking a specific
area/circle at a time” (Page-232)
The distribution licensees are also directed to submit the
detailed action plan for replacement of defective meters and
electromechanical meters consistent with the time lines set by
the Commission in the matter. (Page-232)
It is submitted that at the beginning of FY 2017-18, the count of electromechanical meters
present in the system were 3,29,005. During the first half of the financial year of FY 2017-18
Nigam replaced 43,790 electromechanical meters whose details are provided below:
EM meters Replaced
Single Phase Three Phase G. Total Rural Urban Total Rural Urban Total
It is pertinent to mention that, the Nigam is implementing the MRBD project in which one of
the deliverables is the survey of the meters installed in the premises. After the reconciliation
of the data thus obtain from the survey the final count of EM meters may get impacted.
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24 The Discoms are directed to take up the issue of any unpaid
subsidy vis-a-vis that determined by the Commission in its tariff
Order or FSA Order under intimation to the Commission.
Hence, the Commission decides that the Discoms shall enforce
all the measures including disconnection of AP consumers in
case of non-payment of bills on the same lines as is done in the
case of other consumers. However, if for any policy reasons, the
Discoms fail to do so then the cost of such additional working
capital shall be borne by the State Government. (Page-247)
The issue of unpaid subsidy vis-à-vis that determined by the Commission including FSA
subsidy for AP consumers, has been taken up with the State Govt. in the supplementary
budget.
A.P Subsidy payable for FY 2017-18 amounting to Rs. 7398.12 Cr. (6550.86 Cr. i.e. subsidy
required to keep the tariff at current level + 847.26 Cr. i.e. arrear for RE subsidy for FY 2015-
16) determined in the current year Tariff Order dated 11.07.2017 has been taken up with the
State Government.
Instructions for disconnection of any consumer on non-payment of electricity dues are
already exists.
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25 Companies, during the public hearing on their Annual
Performance Review petition for FY 2016-17, intimated the
following details with regard to defective energy meters.
Meter
category
No. of defective meters (end
March, 2016)
No. of defective meters
(end March, 2017)
Rural Urban Total Rural Urban Total
1 Phase 98097 15835 113932 104101 9133 113234
3 Phase 46287 4970 51257 49753 3826 53579
Total 144384 20805 165189 153854 12959 166813
Accordingly, the licensees are, therefore, once again directed to
submit a detailed report within two months from the date of
issue of this Order, indicating the detailed reason for not
meeting with the targets assigned along with future course of
action to achieve the targets, failure to do so shall attract penal
action as per the Electricity Act, 2003. The licensees are also
directed to intimate the average time taken for replacement of
defective meter along with area wise and age wise defective
meters pending for replacement. (Page-229-230)
Replacement of defective meters is a continuous process for Discom. DHBVN has replaced
1,36,864 defective meters during FY 2016-17. Due to extensive survey of consumer premises
under MRBD project, more number of defective meter are coming to notice of the NIGAM
and are being replaced. Instruction has been issued to all subdivision for early replacement
of defective meters. The status of defective meters ending FY 2016-17 (i.e. 3/2017) and during
FY 2017-18 (upto 9/2017) is as under:
Status of Defective meters ending FY 2016-17 (upto 03/2016)
No, of defective meter 1Φ 3Φ
Rural Urban Total Rural Urban Total
Ending Mar’16 98097 15835 113932 46327 4930 51257
Add during FY17 67452 54166 121618 5406 11464 16870
Replaced during FY17 61448 60868 122316 1940 12608 14548
Balance at the end of FY17 104101 9133 113234 49793 3786 53579
Status of Defective meters during FY 2016-17 (upto 09/2017)
No, of defective meter 1Φ 3Φ
Rural Urban Total Rural Urban Total
Ending Mar’17 104101 9133 113234 49793 3786 53579
Add during Apr’17 to Sep’17
42254 24547 66801 2285 6955 9240
Replaced during Apr’17 to Sep’17
36293 25149 61442 3647 7389 11036
Balance at the end of Sep’17 110062 8531 118593 48413 3352 51783
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26 The Commission is of the considered view that a scientific methodology needs to be developed to calculate voltage wise and category wise losses so as the COS of respective category could be calculated precisely.
Accordingly, licensees are directed to finalize the methodology
for Cost of supply (CoS)/voltage wise and category wise cost of
services and submit the proposal to the Commission for its
approval within three months from the date of issue of this
Order.
In reference to the Nigam submits that a presentation was held on 22.12.2015, wherein the Consultant M/s Feedback Infra Pvt. Ltd on behalf of the Utility presented the methodology followed in Cost of Supply Study to the Hon’ble Commission and it was requested before the Hon’ble Commission to provide the in-principle approval of the methodology adopted for the CoS Study.
It is pertinent to mention that the Hon’ble Commission is yet to accord approval of the methodology proposed by the Nigam. Once the methodology adopted for calculation of Voltage Wise cost of supply is approved by the Hon’ble Commission the final report of voltage wise cost of Supply will be submitted to HERC for approval and compliance of directive.
Furthermore, the Nigam submits that a communication has been made with HERC vide memo no. 74 SE/RA-560 dated 17.11.2017 in this regard.
27 The Commission had directed the Discom to purchase
renewable energy or RECs to meet the RPO targets set for the
FY 2016-17 and also to make up for the shortfall of RPO
compliance carried forward for the previous years, on actual
basis. In view of Haryana Government’s mandate to promote
RE energy especially roof top solar and Waste to Energy,
Discom was directed to meet the maximum RPO targets from
these sources (Page-67).
The Commission directs the Discoms to purchase renewable
energy or RECs to meet with the RPO targets set for the FY 2017-
18 and also to make up for the shortfall of RPO compliance
carried forward for the previous years, on actual basis (Page-
188).
I) RPO Target for FY 2017-18
As per HERC order dated 11.7.2017, the total Solar RPO Target is 867.11 MUs including
backlog of 377 MUs. Total Non-solar RPO target is 1498.25 MUs including backlog of 420
MUs. In order to meet the said RPO target, the action plan is detailed as below: -
II) Action Plan to Purchase Solar Power
HPPC has following proposals in hand to purchase solar power:
1. HPPC is in the process of floating tender to purchase 300 MW solar power through tariff
based competitive bidding. Bidding documents have been submitted in HERC for its
approval. However, the NIT is being revised as per Guidelines for Tariff Based
Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV
Power Projects issued by MoP, GoI on 3.8.2017
2. SCPP has allowed HPGCL to install 52.8 MW solar power plants at their own plants.
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The Discoms and other obligated entities are directed to provide requisite information regarding RPO obligation to the State Agency on monthly basis by 10th of every month for the previous month to enable the State Agency to submit quarterly report to the Commission (Page-189)
3. HAREDA envisage 1600 MW solar power through Rooftop by FY 2021-22.
4. SECI has proposed 250 MW @ Rs. 4.50 per unit fixed for 25 years under VGF scheme.
HPPC had filed a petition in HERC to seek approval to purchase this power. The Hon’ble
Commission vide letter dated 21.3.2017 had sought reasonability of tariff of Rs.
4.50/KWh. HPPC has requested SECI to clarify the same vide letter dated 30.3.2017
followed by reminders dated 25.4.2017 & 21.6.2017 but no reply was received from SECI.
Now, MNRE vide its D.O letter dated 3.7.2017 intimated that SECI will bring out the
State specific tenders based on the demand and agreed benchmark tariff under Batch IV
of Phase II of JNNSM.
Accordingly, SCPP in its meeting held on 26.9.2017 approved to purchase 250 MW solar
power at a ceiling tariff of Rs 2.44/ KWh at Haryana periphery. The same was conveyed
to SECI along with HERC vide letter dated 18.10.2017.
5. NTPC has proposed 353 MW bundled power with 200 MW thermal power of Sangrauli
TPP. HPPC had filed a petition in HERC to seek approval to purchase this power. HERC
vide its interim Order dated 25.5.2017 has directed as under:
“The Commission directs HPPC to carefully examine the terms & conditions of existing PPA
signed with NTPC, Singrauli and work out the possibility of drawing power under the terms of
the existing PPA only. Accordingly, HPPC is directed to review its proposal and may also
consider to withdraw the present proposal”.
It is pertinent to point out the Bulk Power Supply Agreement (BPSA) signed between
NTPC and erstwhile HSEB dated 31.1.1994 states as under:
12. EFFECTIVE DATE AND DURATION OF AGREEMENT
In case Bulk Power Customer (S) continue to get power from the NTPC Station(s) even after
expiry of this Agreement without further renewal or formal extension thereof, then all the
provisions of this agreement shall continue to operate till this agreement is formally renewed,
extended or replaced.
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In view of the HERC order, HPPC has requested NTPC to revise their proposal of
bundled power with tariff aligned to prevailing market conditions but reply is still
awaited.
III) Action Plan to Purchase Non- Solar Power
1. The HPPC has signed the PPA for 25 MW & 7 MW with M/s Narayangarh Sugar Mill &
M/s GEMCO Energy Ltd respectively for supply of non-solar RE power.
2. M/s K2 Power Gen Pvt. Ltd. has offered 2 MW Capacity Grid Connected from Biomass
Gasifier Power Plant proposed in State of Haryana on self-identified basis. Accordingly,
after approval of SCPP, the petition no. PRO-16 of 2017 was filed with HERC for source
approval and the case was heard by HERC on 18.07.2017. The decision of the Hon’ble
Commission is awaited.
3. NIT for procurement of 200 MW wind power for long term from ISTS (Inter-State
transmission system) connected wind power projects through tariff based competitive
bidding process along with PPA has been prepared on the basis of RFP floated by SECI
on the guidelines issued by MNRE/GOI from ISTS connected wind power projects in
India. The draft NIT is under approval from HERC before publishing.
4. M/s RSL Distilleries Pvt. Ltd. offered to sell 3.5 MW power to be generated from 5.5 MW
biomass cogeneration power plants proposed at Karnal. The proposal of firm is under
evaluation in HAREDA.
5. M/s Mor Bio Energy Private Limited., Village Ludana, Tehsil Saffidon, Distt. Jind has
offered to sell 1.2 MW capacity from Bio-gas power project to be setup on self-identified
basis.
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6. Some other non-solar RE based projects like M/s Saraswati Sugar Mill Yamuna Nagar.
M/s KML Distilleries Karnal have requested HAREDA for approval of its DPR of
biomass based project.
7. The Urban Local Body, Haryana has floated the RfP to select the developer to set up
waste to energy plant for at least 10 MW at Bhandwari, Gurgaon.
8. HAREDA is in the process to float the RfP for procurement of 50 MW power from
paddy straw biomass based power in 6 districts namely Ambala, Kurukshetra, Kaithal,
Karnal, Jind and Fatehabad.
9. HPPC has given 400 MW wind power requirement in IInd phase of 1000 MW wind
scheme of Solar Energy Corporation of India (SECI) subject to the approval of HERC.
10. HPPC is also in the process to float the NIT for Procurement of upto 737 Mus RE Non-
Solar power from 15.11.2017 to 31.03.2018 on short-term basis through Tariff based
competitive bidding process for FY 2017-18.
Purchase of REC’s:-
It is pertinent to point out that purchase of Renewable power is more beneficial and in the
interest of consumers than purchase of REC. The same has been acknowledged by the Hon’ble
Commission in its Order dated 20.11.2013 which is reproduced here under:
The Commission is of the view that it is always preferable to purchase renewable energy because of fact that such generation projects as per the statutes has to be encouraged, rather than to purchase REC wherein the amount paid for purchase of the same goes to the generator without even getting the benefit of power availability. Further because of its distributed nature, RE generation is considered advantageous in terms of reduced cost of transmission network and reduced transmission losses. This advantage becomes considerably enhanced when such RE is generated and consumed locally. Therefore, the Discoms in Haryana should prefer to purchase RE generated in Haryana.
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Chapter 7. Prayer
The Nigam respectfully prays that the Hon’ble Commission may:
• Take the accompanying filing of DHBVN on record and accept the petition
regarding true up of expenses and revenue for FY 2016-17, Re-estimation of
Revenue Requirement / Gap for FY 2017-18 and projected Revenue
Requirement for FY 2018-19;
• Allow filing of any additional / supplementary submissions during the
course of these proceedings;
• Allow return on equity as proposed;
• Allow the entire fixed charges of power purchase as the power is procured
from the sources whose PPAs have been duly approved by the Hon’ble
Commission and also the energy charges of power procurement from these
sources as proposed in the filing;
• Allow the Annual Revenue Requirement of the Nigam for the FY 2018-19
including the actual interest on all the loans which is real expenditure borne
by the utility;
• Allow True-Up of FY 2016-17 along with the holding cost and the revised
expenses as projected for FY 2017-18 in the Annual Revenue Requirement of
FY 2018-19;
• To continue the current levels of Tariff to meet the expenses, the gap being
funded through operational financing as proposed under UDAY scheme;
• To allow Additional Surcharge of Rs 1.21 per unit to be recovered from Open
Access Consumers
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• Condone any inadvertent omissions/errors/shortcomings and permit
DHBVN to add/change/modify/alter this filing and make further
submissions as may be required during the course of these proceedings;
• Pass such Order, as the Hon’ble Commission may deem fit and appropriate
keeping in view the facts and circumstances of the case submitted by the
Petitioner.
Sr. No.Name of District
Name of 11KV feeder
No. of villages
Month of Completion
Present Supply Hours
Period (On Completion)
Units
received Units billed Difference
Cumula-tive
losses
Increase/Decrease in
losses
08/15 to 03/16 31.96 20.22 11.75 36.75
08/16 to 03/17 30.93 21.82 9.10 29.43
02/15 to 03/16 115.47 54.97 60.50 52.39
02/16 to 03/17 109.40 56.04 53.36 48.78
147.43 75.19 72.24 49.00
140.33 77.86 62.46 44.51
12/15 to 03/16 7.77 3.28 4.49 57.75
12/16 to 03/17 6.03 2.32 3.71 61.50
11/15 to 03/16 24.50 9.36 15.14 61.80
11/16 to 03/17 25.92 13.29 12.63 48.72
32.28 12.64 19.63 60.82
31.96 15.62 16.34 51.13
02/15 to 03/16 83.25 67.71 15.54 18.67
02/16 to 03/17 102.06 82.21 19.85 19.45
03/15 to 03/16 131.84 84.95 46.89 35.57
03/16 to 03/17 123.72 91.49 32.23 26.05
07/15 to 03/16 110.3 66.64 43.66 39.58
07/16 to 03/17 119.54 91.53 28.01 23.43
325.39 219.30 106.09 32.60
345.32 265.23 80.09 23.19
07/15 to 03/16 35.72 23.31 12.41 34.74
07/16 to 03/17 59.89 46.68 13.21 22.06
35.72 23.31 12.41 34.74
59.89 46.68 13.21 22.06
08/15 to 03/16 17.43 5.95 11.48 65.84
08/16 to 03/17 14.48 11.21 3.27 22.59
08/15 to 03/16 29.64 15.79 13.85 46.72
08/16 to 03/17 18.47 14.82 3.66 19.79
08/15 to 03/16 73.54 20.58 52.96 72.01
08/16 to 03/17 55.77 38.93 16.84 30.20
120.61 42.33 78.28 64.90
88.73 64.96 23.77 26.79
02/15 to 03/16 37.80 13.83 23.97 63.42
02/16 to 03/17 32.02 19.34 12.68 39.60
01/15 to 03/16 55.80 34.99 20.81 37.30
01/16 to 03/17 64.84 44.47 20.37 31.41
08/15 to 03/16 58.75 25.02 33.73 57.41
08/16 to 03/17 52.95 36.20 16.75 31.63
152.35 73.84 78.51 51.53
149.81 100.01 49.80 33.24
10/15 to 03/16 22.94 10.46 12.49 54.43
10/16 to 03/17 24.76 21.45 3.31 13.37
09/15 to 03/16 7.64 4.78 2.86 37.43
09/16 to 03/17 5.36 4.45 0.91 16.98
10/15 to 03/16 8.90 4.16 4.74 53.26
10/16 to 03/17 6.27 4.16 2.11 33.65
09/15 to 03/16 6.99 2.11 4.88 69.82
09/16 to 03/17 10.67 5.97 4.71 44.10
46.47 21.50 24.96 53.72
47.07 36.03 11.04 23.45
Shah Pur 4 29.02.2016 18:00 Hrs -3.62
Total Before completion of work
Comparision of T&D Losses before and after completion of work of MGJG feeders (Mar-17)