West Bengal Electricity Regulatory Commission Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff Application of the West Bengal State Electricity Distribution Company Limited (WBSEDCL), for the year 2014-2015 in Case No TP-61/13-14 Attention of the Commission has been drawn to certain typographical errors / apparent mistakes in the tariff order dated 04.03.2015 passed by the Commission in regard to the Tariff Application of WBSEDCL, for the year 2014-2015 in Case No: TP-61/13-14 . The Commission is of the considered opinion that in the interest of all concerned such typographical error / apparent mistake which do not have any effect on tariff determination already made inadvertently in the said tariff order, be corrected and necessary corrigendum be issued. The Commission accordingly carries out such correction keeping in view the provisions of Section 94 of the Electricity Act, 2003 and directs the Secretary to issue the following corrigendum :- Correction of some typographical errors / apparent mistakes in the Tariff Order dated 04.03.2015 in respect of WBSEDCL. ************************************************************************************************ Page No Nomenclature Present Description Corrected Description 160 Some of the signs in first column with the column heading “Power Factor (PF) Range in %” of the Table “Power Factor Rebate & Surcharge on Energy Charge in Percentage” under sub- paragraph 7.2.11.1 are erroneously printed. Power Factor (PF) Range in % Power Factor (PF) Range in % PF > 0.99 PF > 0.99% PF > 0.98 & PF < 0.99 PF > 0.98% & PF < 0.99% PF > 0.97 & PF < 0.98 PF > 0.97% & PF < 0.98% PF > 0.96% & PF < 0.97% PF > 0.96% & PF < 0.97% PF > 0.95% & PF < 0. 96% PF > 0.95% & PF < 0. 96% PF > 0.94% & PF < 0.95% PF > 0.94% & PF < 0.95% PF > 0.93% & PF < 0.94% PF > 0.93% & PF < 0.94% PF > 0.92% & PF < 0.93% PF > 0.92% & PF < 0.93% PF > 0.86% & PF < 0.92% PF > 0.86% & PF < 0.92% PF > 0.85% & PF < 0. 86% PF > 0.85% & PF < 0. 86% PF > 0.84% & PF < 0. 85% PF > 0.84% & PF < 0. 85%
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West Bengal Electricity Regulatory Commission
Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff Application of the West Bengal State Electricity Distribution Company
Limited (WBSEDCL), for the year 2014-2015 in Case No TP-61/13-14
Attention of the Commission has been drawn to certain typographical errors / apparent
mistakes in the tariff order dated 04.03.2015 passed by the Commission in regard to the
Tariff Application of WBSEDCL, for the year 2014-2015 in Case No: TP-61/13-14 .
The Commission is of the considered opinion that in the interest of all concerned such
typographical error / apparent mistake which do not have any effect on tariff
determination already made inadvertently in the said tariff order, be corrected and
necessary corrigendum be issued. The Commission accordingly carries out such
correction keeping in view the provisions of Section 94 of the Electricity Act, 2003 and
directs the Secretary to issue the following corrigendum :-
Correction of some typographical errors / apparent mistakes in the Tariff Order dated 04.03.2015 in respect of WBSEDCL.
Page No Nomenclature Present Description Corrected Description
160
Some of the signs in first column with the column heading “Power Factor (PF) Range in %” of the Table “Power Factor Rebate & Surcharge on Energy Charge in Percentage” under sub-paragraph 7.2.11.1 are erroneously printed.
16 Short Term Power 1016.95 0.00 323.96 32944.47 323.96 0.00 0.00 0.00 0.00 0.00 0.00 17 Total 37908.21 364385.55 242.08 1282088.50 338.21 40067.17 429015.31 234.05 1366803.54 341.13 42965.13 461496.40 234.72 1469958.94 342.13
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 4B
ENERGY BALANCE
82
Sheet – 1/2
A Energy Input Unit Derivatives 2014-15 2015-16 2016-17 1 Generation MU A 1390.331 1399.331 1402.331 2 Auxiliary Consumption MU B1 19.623 19.713 19.743 3 Units delivered to system from generation [Form 1.5] MU C=A-B1 1370.708 1379.618 1382.588
3(a) Units delivered to system from generation at EHV MU C1=C-D-C 1345.333 2 1354.243 1357.213 3(b) Units delivered to system from generation at HV MU D 25.375 25.375 25.375
4 Quantum of Infirm power included in 3 MU C 0 2 0 0 5 Energy Purchased at EHV MU E 37472.248 39631.203 42575.953 6 Power Drawn under UI Mode MU F 0 0 0 7 Energy Received for Wheeling at 132 KV MU G 0.000 0.000 0.000 8 Less: CTU Loss MU H 309.725 356.230 344.071
9 Overall Gross Energy Input to WBSETCL System MU I=C1+E+F+G-H 38507.856 40629.216 43589.095
10 WBSETCL Loss % J 3.4% 3.4% 3.4% 11 WBSETCL Loss in MU MU K=I*J/100 1309.267 1381.393 1482.029 12 Net Energy available from WBSETCL System MU L=I-K 37198.589 39247.823 42107.066
13 Energy sold to person other than consumer and licensee at EHV MU M 3867.165 4094.166 3542.166
14 Energy sold to licensee at EHV and Sale to Sikkim MU N 2057.00 877.00 932.00
15 Additional units allowed by Commission for sale to other licensees MU O 72.4 30.867 32.803
16 (a) Units sold/ used for pumping energy of Pumped Storage Project MU P 1119.000 1119.000 1119.000
16(b) Trans. Loss for pumping energy MU Q 39.385 39.385 39.385 17 SWAP OUT MU 0 0 0 18 UI OUT MU R 0 0 0
19 Total Energy goes out from WBSETCL System at EHV MU S=M+N+O+P+Q+R 7154.950 6160.418 5665.354
20 Net Energy available from WBSETCL System to WBSEDCL MU T=L-S 30043.639 33087.405 36441.712
21 Own sent Out at 33 KV and below MU U=C2 25.375 25.375 25.375 22 Energy purchased by WBSEDCL at 33 KV & below MU V 435.965 435.964 389.175 23 Energy Received for Wheeling at 33 KV [Form 1.9a] MU W 17.000 17.000 17.000 24 Total Energy available to WBSEDCL system MU X=T+U+V+W 30521.979 33565.744 36873.262
Tariff Order of WBSEDCL for the year 2014 – 2015
83
ANNEXURE – 4B Sheet – 2/2
B Energy Utilization [Form 1.7] Unit Derivatives 2014-15 2015-16 2016-17 a. Units sold to consumers MU Y 24785.100 27232.1 29921.1 b. Energy sold to licensee below EHV level [Form 1.9b] MU Z 333.900 394.22 431.3 c. Units wheeled [Form 1.9c] MU AA 15.640 15.64 15.64 Additional units allowed for wheeling MU AB 1.360 1.36 1.36
d. Units utilized in own premises including construction power MU AC 46.000 48 50 e. Unutilized Units MU AD 5339.979 5874.424 6453.862 Total Energy MU sum(Y:AD) 30521.979 33565.744 36873.262
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 5
FIXED CHARGES
West Bengal Electricity Regulatory Commission 84
5.1 The analysis of the fixed charges projected by WBSEDCL for the ensuing years
of fourth control period under the Multi Year Tariff (MYT) application under
different heads of accounts has been taken up in this chapter.
5.2 WBSEDCL has projected the gross fixed charges, income from different non-
tariff sources and different income from other heads for the ensuing years 2014-
15, 2015-16 and 2016-17.
5.3 While determining fixed charges on different heads for WBSEDCL for the fourth
control period (2014-15, 2015-16 & 2016-17) the following considerations have
taken place:
5.3.1 WBSEDCL has projected inflation rate of 10.09% on the basis of actual inflation
rate for the month of October 2013. Commission finds no merit in considering the
inflation rate of one month only for projection purpose when such projection will
be applicable for thirty six months. In addition some of the objectors has also
objected such high rate of inflation citing examples of WPI based lower rate of
inflation as applied by different State Electricity Regulatory Commissions.
Commission instead of considering the inflation rate of 10.09% in general for
projection purpose decides to proceed in a further rational manner by following a
methodology that has been applied for all distribution licensees subject to case
specific differences in some cases to protect the interest of consumers as far as
possible after meeting the requirement of reasonable tariff determination to
provide end of justice to all concerned stakeholders as deemed fit by the
Commission. Moreover by the time of processing the tariff application by
Commission the inflationary trend shows downward direction. Due to the above
fact and views of different stakeholders on this inflationary rate, Commission
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 85
decides to determine projected inflation rate and the resultant escalation rate in
view of such inflation rate as detailed out in subsequent paragraphs.
Commission observed that Central Electricity Regulatory Commission based on
a hybrid index of WPI (Wholesale Price Index) & CPI (Consumer Price Index)
has observed an annual inflation trend of 8.35 % while fixing the norms of O&M
expenses in Central Electricity Regulatory Commission (Terms and Conditions of
Tariff) Regulations, 2014 (hereinafter refer to as ‘CERC Tariff Regulations’) for
central sector utilities for the period 2014-2019. This inflation trend of 8.35 % is
computed based on five year average of WPI and CPI indices for FY 2008-09 to
FY 2012-13 considering 60% and 40% weightage on WPI and CPI respectively.
However, while fixing norms of O&M cost (which includes employee cost also)
the annual escalation rate on O&M expenses during the period 2014-2019 has
been considered as 3.32% for A.C. transmission system as per the statement of
reasons of the CERC Tariff Regulations for the said period. This 3.32% is the
110% of the actual Compounded Annual Growth Rate (CAGR) (3.02%) of O&M
expenses for A.C. transmission system during the period 2008-09 to 2012-13
computed on the basis of 70% weightage on actual O&M cost of per bay of sub-
station and 30% weightage on actual O&M cost of per CKM transmission line.
Taking the above mentioned principle adopted by CERC as a guideline
Commission also decides to find out a reasonable annual escalation rate for
WBSEDCL for all sub-heads of O&M expenses for distribution function, rates &
Taxes, insurances, expenses for complaint management mechanism and
different types of Outsourcing Costs for distribution function with certain deviation
based on certain reasons as explained below:
a) The control period is of three years and as more than 6 months of 2014 has
already passed thus the inflation trend between October 2011 and
September 2014 has been computed where weightage has been given to
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 86
WPI & CPI at the ratio of 60:40 in line with the norms fixation methodology
under CERC Tariff Regulations. This is being done in order to capture the
realistic trend of 2014-15 as far as possible so that projection for fourth
control period can have better accuracy. Accordingly based on the WPI
numbers and CPI numbers as available in the website of Economic Advisor
of GOI for WPI and Labour Bureau of GOI for CPI the computed inflation
trend for the above 36 months are given in the following table 5.3.1-I:
Table- 5.3.1-I TREND OF INFLATION RATE FOR THE PERIOD OCTOBER 2011 TO
SEPTEMBER 2014 Average inflation rate as per WPI from October 2011 to September 2014= 6.62 Average inflation rate as per CPI from October 2011 to September 2014= 9.15
Average inflation rate as per WPI + CPI (60:40) from October 2011 to September 2014= 7.63
Note : For detail data Annexure – 5A may be seen
b) Different sub heads under O&M expenses, Expenses for outsourcing (limited
to manpower and vehicle hiring cost), Expenses for outsourcing ( except
manpower and vehicle hiring cost), and expense head for complaint
management mechanism, insurance and rates & taxes are effected by
inflationary trend but at different degrees depending on the characteristics of
such head or sub-head. In this context two recognized inflationary trends
used in the country are WPI index and CPI index. Along with these two types
of inflationary rate for power sector another third type inflationary rate used by
the Commission is based on hybrid index (WPI+CPI) as explained in
paragraph (a) above. In table-2 in Annexure-5B the basis of inflationary rate
considered for such heads and sub-heads of expenditure are given. In this
context Commission has decided to consider number of elements of fixed
charges to be sensitive to CPI index based inflationary rate instead of hybrid
(WPI+CPI) index in line with CERC norms fixation as explained above on the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 87
ground that those heads/ subheads of any distribution licensee are heavily
burdened with employee wages/ allowances and benefits. However for lease
rental line such sensitivity is considered with WPI index. In this context it is to
be noted that all these heads of expenditure are treated as heads under O&M
function of CERC Tariff Regulations. Accordingly the above inflation rate as
given in the table above are used for applicability in giving escalation rate in
2014-15, 2015-16 & 2016-17 with respect to the previous years’ admitted
expenditure to find out the admitted expenditure of the referred heads in
those years. Thus the inflation rate considered for tariff computation are as
per the following table 5.3.1- II:
Table 5.3.1-II
INFLATION TRENDS
Financial Years CPI WPI
Combined WPI & CPI (60 : 40)
Remarks
2010-11 10.53 9.57 9.96 Actual 2011-12 8.42 8.96 8.74 Actual 2012-13 10.43 7.36 8.59 Actual 2013-14 9.72 5.98 7.47 Actual
2014-15 6.81 4.78 5.59 As per 6 months
trend 2015-16 9.15 6.62 7.63 As per Table 5.3.1-I
& as explained above 2016-17 9.15 6.62 7.63
2011-12 to 2013-14 9.52 7.43 8.27 Averaged on annual basis 2010-11 to 2013-14 9.78 7.97 8.69
Note : For detail data Annexure – 5A may be seen
In 2014-15 as the trend is downward than the value under Table 5.3.1-II and
as the time already passed in 2014-15 has covered fifty percent of the year
thus such value has been considered with due insulation against uncertainty
wherever required through providing necessary certain additional float.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 88
c) It has been observed that the actual data submitted by WBSEDCL is of
erratic nature on meter reading and bill distribution which are now under a
transition mechanism from manual billing to spot billing where meter reading
and bill distribution are done at the same instance resulting into lesser
transaction cost. Thus to capture the flavor of this transition period properly
and to have a better projection or estimation from 2013-14 to 2016-17, the
head of meter reading and bill distribution has been considered compositely.
Moreover under the outsourcing cost the data behavior of past records in
relation to line maintenance and substation maintenance are also to be found
more rational while they are considered in a composite manner. Thus for
projection or estimation of expenditure related to line maintenance and
substation maintenance under both controllable and uncontrollable
outsourcing head has been dealt in a composite manner for the period from
2013-14 to 2016-17.
d) For finding out the expenditure to be admitted by the Commission, the
estimated expenditures of 2013-14 submitted by WBSEDCL are scrutinized
by the Commission so that overestimated value can be rationalized to a
reasonable extent. This is being done as otherwise the existence of over
estimated expenditure for 2013-14 may result into higher admitted amount for
fourth control period as because the computation for projection of expenditure
for 2014-15 to 2016-17 are done by applying the annual escalation rate over
the estimated figure of 2013-14. On the estimated value as provided by
WBSEDCL for 2013-14 Commission finds that against some elements the
estimation of expenditure seems to be on extremely higher side. The
Commission cannot accept such over-estimation. In any year this deviation
can occur for any item of expenditure but it cannot be considered as a trend
for future projection. Such items of expenditure which are estimated on higher
sides have been dealt in the next paragraph. In fact for realistic projection for
2013 – 2014 the impact of business volume increase has been considered by
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 89
the Commission in a same way as has been considered in the tariff order.
Accordingly, the expenditure items which are sensitive to consumer strength
moderately the impact of business volume increase has been given as 2%.
Such impact has been considered as 1% where the expenditure of item is
sensitive to distribution line length. Accordingly, the Commission has done its
own estimation based on the Table-1 of Annexure – 5B by applying its
prudence which are explained below item wise:
i) The trend of actual expenditure on lease line head during the period
2010-11 to 2013-14 is very erratic. The value of 2010-11 and 2011-12
has not been considered for escalation rate determination for future as
this was the initial period when such lease line was under commissioning
and it is being found that expenditure pattern is not commensurating with
the progress of lease line facility. Thus the expenditure of 2012-13 has
been only considered as rational data reflecting the past trend of actual
expenditure in proportion to lease line asset strength. Regarding Lease
rental charges as estimated by WBSEDCL for 2013-14 is about 284%
higher than the audited actual value of Rs 1666 lakh in 2012-13. By 2012-
13 already the primary lease line for WBSEDCL’s communication network
has been completed. Thus the estimated expenditure in 2013-14 cannot
be so high and hence it is estimated by the Commission for 2013-14 after
imposing WPI based inflationary rate along with impact of additional
impact due to increase in establishments of WBSEDCL on the audited
expenditure of 2012-13 . Such additional impact due to increase in
establishments has been considered as 0.25% for each 1% increase in
distribution line length (DLL) in line with the trend in increase in expenses
in rent charges under Administrative & General Expenses. Accordingly
the expenditure for 2013 -14 for lease rental as estimated by the
Commission is Rs 1829.94 lakh.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 90
ii) Expenses for complaint management mechanism is an expenditure
related to toll free telephone for ZCC, SMS charge to communicate with
mobile van, rental charges of IVRS system , separate telephone at
customer care centre for complaint management mechanism and anti-
theft toll free telephone charges. The whole system being now already
stabilized it will now be considered as a controllable item in the fourth
control period. WBSEDCL has not justified the reasons that why in 2013-
14 the estimated expenditure is 124% higher than the actual value of
2012-13. Commission finds no merits in such estimation. Thus the
estimated value for 2013-14 has been considered by giving an escalation
on actual value of 2012-13 due to impact in establishment of WBSEDCL
across the state during the period. Such additional impact due to increase
in establishments has been considered as 0.25% for each 1% increase in
distribution line length (DLL) in line with the trend in increase in expenses
in rent charges under Administrative & General Expenses. Accordingly
the expenditure for 2013 -14 complaint management mechanism as
estimated by the Commission is Rs 385.99 lakh. Impact of separate
inflationary trend for 2013-14 on this head has not been considered as in
telecom service such escalation rate is very insignificant as such sector is
still expanding at faster rate.
iii) WBSEDCL’s claim that service tax has increased presently due to
reverse charge and inclusion of more activities is not convincing to the
Commission at this stage as WBSEDCL cannot justify such claim by
providing detail of such activities and quantification of amount of reverse
charging for 2013-14. However during APR of WBSEDCL for 2013-14
and also for the years under fourth control period WBSEDCL shall come
with detail to establish their such claim. Thus under such scenario
estimation for Rates and taxes for 2013-14 has been done by taking the
average of actual annual expenditure on the same head for the period
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 91
2009-10 to 2012-13 as the actual expenditure in past shows high
variation. Accordingly the estimated value in the head of Rates & Taxes
for 2013-14 as computed by the Commission is Rs 1270 lakh.
iv) For Line and substation Maintenance (Excluding manpower) the annual
expenditure are found to have wide variation from year to year basis in
the period 2009-10 to 2012-13 and which seems to be gradually
stabilizing at the rear end of the said period. Thus sudden increase of
about 16.70% as estimated by WBSEDCL in 2013-14 over the
expenditure of 2012-13 is irrational as it is double the actual inflation of
7.48% for 2013-14. In such background Commission has estimated it by
taking admitted value on such head in the tariff order related to 2013-14.
Accordingly the estimated value of expenditure for line and substation
maintenance (excluding manpower) during 2013-14 as computed by the
Commission is Rs 3701.51 lakh which is considered to be sufficient in the
opinion of the Commission.
v) For Data Ware-housing the actual annual expenditure from 2009-10 to
2012-13 is within Rs 10 lakh except in 2012-13 when such expenditure
sharply increase to Rs 80 lakh. In absence of detail justification by
WBSEDCL along with supporting calculations the estimated expenditure
of Rs 93.36 lakh in 2013-14 with another increase of 16.70 % over the
expenditure of 2012-13 as done by WBSEDCL seems to be very high
specially (more than double of the inflation rate of 7.48% in 2013-14) in
the background of their recent initiatives in billing and other activity in
ERP (Enterprise Resource Planning) platform. In fact it is to be noted that
the sensitivity of Data Ware-housing very slightly depends on consumer
strength. In view of such assessment Commission has estimated the
expenditure on Data Ware-housing for 2013-14 by taking the same value
of Rs. 10.79 lakh which has been admitted in the tariff order for 2013-14.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 92
vi) For estimation of expenditure on back office job head for 2013-14 an
increase of 16.70% has been considered by WBSEDCL without giving
any justification of such large increase which is more than double the
inflation rate of 7.48% . In view of projected large scale new employment
by WBSEDCL in regular establishment during the period 2013-14 to
2016-17 as shown in form 1.17(h) of tariff application for 4th
vii) The expenditure on the head of meter reading and bill distribution is
highly sensitive to consumer strength as the rate under the outsourcing
orders are per transaction basis. Inflationary trend is not applicable after
the contract is awarded. In case of new contract agreement the likely
increase is considered to be largely neutralized by advantage of scale of
economics due to increased consumer strength as well as the process of
such out-source activity which is becoming more organized and efficient
with the passage of time. Moreover as WBSEDCL is now passing through
the transition period of switching from manual meter reading and bill
distribution system to spot billing mechanism where in a single instance
both meter reading and handing over the bill to consumer is done to
reduce the transaction cost. This has also playing a major role in cost
control in this head. Thus accordingly the estimated expenditure of 2013-
14 has been computed by the commission by giving the escalation over
the actual expenditure on this composite head of 2012-13 at the same
increase rate of expenditure that is found in 2012-13 over 2011-12 for
increase in every 1% increase in consumer strength. Accordingly the
control period
and also after considering the impact of different IT initiatives of
WBSEDCL alongwith ongoing projects of ERP based activities the
requirement of back office job is not required to be increased further.
Accordingly the estimated value of back office job for 2013-14 has been
kept at the same level of 2012-13 by the commission.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 93
estimated expenditure for 2013-14 on the head of meter reading and bill
distribution as done by the Commission is Rs.4832.10 lakh.
viii) The expenditure on the head of collection franchisee is highly sensitive to
consumer strength as the rate under the outsourcing orders are per
transaction basis. Inflationary trend is not applicable after the contract is
awarded. In case of new contract agreement the likely increase is
considered to be neutralized by advantage of scale of economics due to
increased consumer strength as well as the process of such out-source
activity which is becoming more organized and efficient with the passage
of time. Thus accordingly by giving the impact of increased consumer
strength of 2013-14 on expenditure of 2012-13 for the above two heads
Commission estimated the expenditure of 2013-14 for collection
franchisee as Rs 1154.44 lakh.
ix) The expenditure on the head of security is increasing fast from 2009-10 to
2012-13. Again an increase of 16.70% in 2013-14 seems to be high.
Moreover, detail scrutiny of such expenses is required by this
Commission. At present the average of actual expenditure of 2011-12
and 2012-13 i.e., Rs 3042.37 lakh has been considered as estimated
expenditure of 2013-14 by the Commission. During truing up in APR
WBSEDCL shall come up with all relevant information and documents to
justify their claim of so high amount of expenditure on security head.
x) For MCSU service, Call center service as per SOP regulation the
estimate of WBSEDCL in 2013-14 seems to be high at the rate of 16.70%
but it has not been changed as Commission is of the opinion that as
those activities has been fully roll down during the third control period
thus at that initial stage the expenditure growth rate was high. But
beyond 2013-14 such escalation rate shall reduced in the fourth control
period. Thus, as estimated by WBSEDCL, the expenditure in 2013 –
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 94
2014 has been accepted but beyond 2013 – 2014 for different ensuing
years growth rate will be reduced as dealt in subsequent paragraph. For
2013-14 the estimated repair and maintenance expenditure has been
accepted by the Commission in order to provide a starting base of fourth
control period with a flip so that WBSEDCL can gradually control its
expenditure in fourth control period with a lesser escalation target than
that of the estimated one in 2013-14.
xi) For insurance charges WBSEDCL has not explained that why the
estimated expenditure of Rs 801 lakh during 2013-14 have a high
escalated rate of 216% over the amount of Rs 370 lakh in 2012-13. It has
not also explained that again why in 2014-15 the projection by WBSEDCL
shows a decrease in expenditure on insurance head to an amount of Rs
672 lakh. The commission has noted the above irrationality and thus does
not rely on the expenditure of base year of 2013-14 as estimated by
WBSEDCL and consider the projected value of 2014-15 as also the
estimate value of 2013-14.
e) Where the past CAGR of expenditure of any above referred elements for the
third control period (2011-12 to 2013-14) is lesser than the concerned
inflation rate as provided in table 5.3.1-I in such case in line with CERC’s
principle 110% (an additional 10% margin over actual growth rate) of such
growth rate is considered as the annual escalation rate for 2014-15 to 2016-
17 for the following reasons:
i) to ensure the interest of stakeholders in a more better way from the point
of view of availability considerations of the network asset and different
services;
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 95
ii) to provide a comfort to WBSEDCL in carrying out O&M of the assets by
extending an additional insulation against uncertainty arising out of
increased expenditure for any unforeseen reason.
It is to be noted that for the said period the expenditure considered for 2013-
14 is estimated one made by the commission and for 2011-12 & 2012-13
actual expenditure has been taken. In certain cases the CAGR for larger
period is also considered where Commission finds that such decision will
provide more rational and better accuracy in the projected admitted cost.
f) Where the projected expenses by WBSEDCL are less than the estimated
value of 2013-14 and also the actual value of 2012-13 in such case no
escalation is being allowed for fourth control period because WBSEDCL’s
projection is considered as admitted figure.
g) Where the past data show irrational/asymmetric character in such case
Commission by applying due prudence take an appropriate escalation rate
which is discussed in relevant portions.
h) Where annual escalation rate or CAGR of past period crosses the concerned
inflation rate of the said past period in such case escalation rate for projected
expenditure due to business volume increase is computed from past trend by
reducing it with the concerned inflation rate of the relevant past period and
that has been explained in the relevant portions. In such case the annual
escalation rate for 2014-15, 2015-16 and 2016-17 are as follows:
Annual Escalation Rate (%) for any ensuing year = A+ R × BGR+Ad_F
Where A = Inflation rate (%) based on CPI or WPI or hybrid
(WPI+CPI) index as applicable for the fixed
charge element.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 96
R = Ratio of percentage annual increase in
expenses in the past period and percentage
increase in business volume parameter during
the same period.
BGR = Projected growth rate (%) for the ensuing year
of the business volume parameter to which the
fixed charge element under consideration is
sensitive.
Ad_F = Additional float in % as decided by commission
to provide insulation against uncertainty in
projected inflation or business volume growth.
For such annual escalation rate calculation the annual increase (%) in
expenses as required for calculation of R is decided by commission by taking
the lowest positive CAGR value from among CAGR of 2013-14 (i.e., annual
increase rate) or CAGR of 2011-12 to 2013-14 or CAGR of 2010-11 to 2013-
14 subject to different aspects considering rationality or level of asymmetric
character of past data as has been explained in the relevant portion. However
principally wherever R on computation found to be higher than one then in
such case R is considered not more than 1 as Commission is of the opinion
that rate of increase in expenses due to business volume increase cannot
surpass the rate of increase in business volume parameter unless there is
any specific reason which can be established by the licensee. Similarly when
R is found to be a value between 0.5 and 1 then also in ensuing year annual
escalation rate is further reduced by a small quantum with an objective of
gradual improvement in efficiency of the licensee in expenditure control by
utilizing different resources in a more effective manner.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 97
Where necessary while computing additional expenditure represented by
(R×BGR) of any element of fixed charge due to increase in business volume
that additional expenditure is modified in a reasonable and rational manner
after taking the impact of above mentioned sensitivity parameter on the
additional expenditure. Detail of such modification and any other specific
consideration are detailed out in relevant portion where each element of fixed
charge is dealt with. For controllable factor additional float of 0.5% is given to
cover any expenditure hike due to unforeseen reasons.
i) In line with the principle adopted in the tariff order of WBSEDCL for third
control period, Commission decides that for the ARR determination in the
tariff order of fourth control period the impact of increase in business volume
on different sub-heads/ heads will also be considered from the point of
sensitivity of the head/sub-heads to certain business volume parameter. For
such purpose in the business process of WBSEDL there are two important
business volume parameters such as Distribution line length (DDL) in Circuit
Kilometer (CKM) and Consumer strength. Different elements of fixed charge
elements are sensitive to either of the above two parameters and where such
element is sensitive to consumer strength there is variation in the degree of
such sensitivity. After applying such degree of sensitivity the number of
business parameters considered in this tariff order are Distribution Line
Length (DLL), Consumer Strength in moderate degree (CSM), Consumer
Strength in high degree (CSH) and Consumer strength with lesser degree
than CSM (CSM-L). The table 1 under Annexure 5B shows the concerned
business volume parameter sensitivity against different elements of the fixed
charges.
j) WBSEDL has projected consumer strength annually and its annual growth
rate for 2014-15, 2015-16 and 2016-17. But for distribution line length they
have projected annual growth rate of 14.57% during the same period without
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 98
giving the absolute value. Accordingly for the purpose of this tariff order the
target business parameters for 4th
Table 5.3.1- III
control period along with the estimated
value of 2013-14 are as follows:
Particulars 2013-14 2014-15 2015-16 2016-17 Consumer Strength (no.) 12855266 13940250 15064240 16240567 Increase(%) in Consumer strength 6.30 8.44 8.06 7.81 Distribution line length in CKM 467924.17 536100.72 614210.59 703701.07
Increase(%) in line length 14.57 14.57 14.57 14.57
In pursuance to regulation 8.1 of the Tariff Regulations while projecting the
above figure following considerations have been taken:
• As the original tariff application is submitted at the end of 2013-14 thus it
can be considered that the estimated data for 2013-14 will have high
degree of accuracy.
• The value related to 2013-14 on consumer parameters are estimated by
using the relevant audited data of 2012-13 and projected data of such
parameters for 2014-15 by WBSEDCL in their tariff application.
• The value related to 2013-14 on distribution line length parameters are
estimated by using the projected growth rate of 14.57% over the audited
data of 2012-13.
• The value of projected consumer strength of 2014-15 to 2016-17 has
been taken from Form 2.2 of the Annexure -2, i.e., Volume III of tariff
application.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 99
• The value 8.44% of increase in consumer strength for 2014-15 has been
taken from paragraph 5.8(c) of the tariff proposal in page 61 of Volume-I.
During truing up in Annual Performance Review (APR) of the above ensuing
years of 2014-15 to 2016-17 such projected distribution line length in CKM
and Consumer Strength in number as given in table 5.3.1-III shall be
considered as the basis against which the expenditure has been admitted
during concerned tariff order and accordingly truing up will be taken up
subject to the conditions as mentioned in paragraph 5.3.7.
k) For computation of computed expenditure by the Commission on different
heads for 2014-15 to 2016-17 the base expenditure over which the above
escalation rates are applied has been considered on the estimated
expenditure of 2013-14 made by WBSEDCL and duly modified in some
elements by the Commission as explained in paragraph (h) above. This is
being done as the application of tariff is submitted at the end of 2013-14 and
is likely to have little inaccuracy with respect to actual expenditure.
l) Based on the above principle the projected expenditure on above mentioned
different elements of fixed charges for 2014-15, 2015-16 and 2016-17 has
been computed and then compared with the claimed amount of WBSEDCL
for the said year and whichever is lowest is being admitted in this tariff-order.
m) However for recent past the distribution loss and AT& C losses are
increasing as shown below:
PERFORMANCE TREND OF WBSEDCL PARAMETERS UNIT 2010-11 2011-12 $ 2012-13 $ Distribution loss in % % 25.24 24.88 25.40 AT & C loss in % % 28.01 28.49 31.56 $ As per submitted data to CEA by WBSEDCL
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 100
After analyzing the performance of different licensees Commission feels that
WBSEDCL is required to improve their performance in overall sense where
losses due to technical reasons cannot be a major issue as for the last few
years since inception of APDRP capacitor bank projects and feeder
rationalization initiatives lot of technical intervention has been done through
the above and RADPRP projects to reduce the technical losses. In the
background of such initiatives it is natural that WBSEDCL must have take
adequate technical measures in rural electrification programme also to keep
the technical losses within a reasonable limit so that normative target of
WBSEDCL ‘s distribution loss could be achieved. For the last few years the
Commission has approved expenditure with high rate of increase but without
any tangible gain as seen from the last few years distribution and AT&C
losses.
WBSEDCL shall be aware of this situation and take appropriate measures to
contain the future retail tariff at reasonable rate. However in this tariff order
after analyzing the different escalation rate computed for activities which has
direct impact on distribution & AT&C loss such as repair maintenance
related controllable heads like the heads of repair & maintenance , line and
substation maintenance (except manpower & vehicle hiring cost)) , and meter
reading and bill distribution function it is found that the computed escalation
rate by WBSEDCL is at sub-inflationary level and of meager escalation rate
then Commission provides an additional float to provide an comfort to
WBSEDCL to ensure reduction of distribution losses and AT&C losses.
WBSEDCL shall also take into notice that in future such type of comfort may
further not be extended as simultaneous increase in distribution loss / AT & C
loss as well as continuous increase in expenditure in repair maintenance
related heads is to be treated as unnecessary pampering of inefficient
performance of WBSEDCL.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 101
5.3.2 Operation and Maintenance (O&M) Expenses : As per regulation 5.7 of the Tariff Regulation the components of Operation and
Maintenance (O&M) expense are as follows:
i) Repair & Maintenance Expenses (R & M)
ii) Administrative and General Expenses which are composed of followings
- Rent and lease charges
- Legal charges
- Auditor’s expenses, which include auditor’s fees, auditor’s expenses and
payment to auditors in any other capacity or for any work which is
necessary to be got done from them and audited.
- Consultancy charges for work which cannot be done in-house or is
uneconomical in doing in-house or is essential to be done from outside
sources except payment to Auditors.
- Other expenses necessary and arising from and ancillary or incidental to
the business of electricity except penalty etc. levied under this Act or any
other Act.
5.3.2.1 Operation and maintenance (O&M) Expenses for generation:
After analyzing the tariff application of WBSEDCL for the period from 2014-15 to
2016-17, while determining O&M expenses, the Commission has allowed O&M
expenses for generation in accordance with the norms specified in Schedule 9A
of the Tariff Regulations. Accordingly the admitted value for O&M expenses for
generation function is Rs. 4270.75 lakh, Rs. 4486.44 Lakh and Rs. 4707.65
lakh respectively and detail computation are given below:
Rs. in Lakh
Stations Installed capacity in MW
O&M Cost per MW as Tariff Regulations Admitted O&M cost
Note; Employees cost is Including terminal benefit cost as shown in paragraph 5.4.3 The function wise allocation between generation and distribution is being done
on the basis of same proportion as has been done in the proposal of
WBSEDCL.
5.5 Depreciation:
WBSEDCL has projected depreciation for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 in terms of the Tariff Regulations. The depreciation projected
by WBSEDCL for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 are
Rs. 50301.00, Rs. 61371.00 lakh and Rs. 69042.00 lakh respectively.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 115
WBSEDCL is directed to furnish the details of addition/ deletion of asset with
the opening value of the asset in APR of the respective year along with their
linkage with capital expenditure programme. The Commission will review the
depreciation on compliance of such directives during APR for the concerned
years. The depreciation admitted by the Commission as per the projection of
WBSEDCL for the years 2014-15, 2015-16 and 2016-17 are as follows: Rs. in lakh
Depreciation
Sl. No Particular Amount as Admitted 2014-15 2015-16 2016-17
WBSEDCL has not projected any amount on the head of bad debts for any of the
ensuing year under the fourth control period. The Commission, thus, does not
consider any amount under the head bad debt for any ensuing year under the
fourth control period. In case of any bad debt actually written off in any year,
WBSEDCL shall claim the same as per provision of regulation 5.10.1 of the Tariff
Regulations in their APR application for the concerned year.
5.10 Minimum Alternate Tax
On Minimum Alternative Tax, the amounts claimed by WBSEDCL are admitted
subject to adjustment in APR as per the provision of Tariff Regulations.
WBSEDCL projected expenses for income tax at the level of Rs.823.90 Lakh,
Rs.906.26 Lakh and Rs. 996.92 Lakh for 2014-15, 2015-16 and 2016-17
respectively which are being admitted by the Commission as per provision of the
Tariff Regulations. The entire amount is allocated to distribution function.
5.11 Interest on Consumers’ Security Deposits
WBSEDCL has claimed towards interest on consumers’ security deposit of Rs.
7033.64 lakh for 2014-15, Rs. 7983.18 lakh for 2015-16 and Rs. 8845.36 lakh for
2016-17. The actual amount of interest accrued on consumers’ security deposit
during 2012 – 2013 as per audited annual accounts was Rs. 6271.00 lakh. In
view of the same, the projected value of interest on consumer security deposit for
2014 – 2015, 2015 – 2016 and 2016 – 2017 is admitted as Rs. 7034.00 lakh, Rs.
7983.00 lakh and Rs. 8845.00 lakh respectively after due rounding off. The entire
amount is allocated to distribution function.
5.12 Reserve for Unforeseen Exigencies
WBSEDCL has not claimed any amount under the head reserve for unforeseen
exigencies for the years in 2014-15, 2015-16 and 2016-17 and the Commission
also does not consider to allow any amount under this head.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 119
WBSEDCL is, however, directed to maintain the funds lying with them as per
provision of the regulation 5.24 of the Tariff Regulations.
5.13 Interest on Working Capital:
WBSEDCL has stated that in accordance with the direction of the Commission,
the security deposit of the permanent consumers (excluding provision for security
deposit) during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has been
considered for utilization as working capital during the respective year and no
amount has been claimed against the head interest on working capital for the
ensuing years. The Commission also does not consider any amount under the
head for any ensuing year. The necessity of borrowing working capital, however,
cannot be ruled out. If any such borrowing is done for any of the years, the
interest on that will be considered for re-imbursement through APR for the
concerned year.
5.14 Return on equity
WBSEDCL has proposed normative return of Rs. 73999.00 lakh each year on
the average equity base of Rs. 354770 lakh for the years 2014 – 2015, 2015 –
2016 and 2016 – 2017. Such normative return has been asked for distribution
function only. While computing the normative return, WBSEDCL has considered
the return @ 20.88% on pre-tax basis.
WBSEDCL in their computation of equity base in Form 1.20(a) to Annexure – 1
has shown the admissible equity base at the beginning of the year 2014 – 2015
as 354474.00 lakh while the estimated admissible equity base at the end of the
year 2013 – 2014 is 290568.00 lakh. The Commission, in the process of
computation, has viewed the paid up share capital as on 31.03.2013 as per
audited annual accounts of WBSEDCL for 2012 – 2013 and the projected
addition to equity base vis-à-vis the projected addition to fixed assets during the
year 2013 – 2014. It is also seen from the annual accounts of 2012 – 2013 that
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 120
the closing balance net surplus at the end of 2012 – 2013 was (-) 16083.00 lakh.
Thus the addition to equity from surplus is not considered during 2013 – 2014. In
this process the Commission considers the closing admissible equity base of the
year 2013 – 2014 as well as the opening admissible equity base for 2014 – 2015
as Rs. 225674.00 lakh. WBSEDCL has not proposed for any equity addition
during the years 2014-15, 2015-16 and 2016-17. WBSEDCL has not also
proposed for utilization of free reserve for any asset creation during the ensuing
years. The Commission considers the opening equity base as Average Equity
Base for the respective years and allowed 16.5% return on the same in terms of
Tariff Regulations. The workings are shown in the following table:
Rupees in Lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1 Actual equity base considered at the beginning of the year including free reserve 225674.00 225674.00 225674.00
2 Admissible equity base at the beginning of the year 225674.00 225674.00 225674.00 3 Addition to Equity base for the year 0 0 0 4 Actual Equity base at the end of the year [(1) + (3)] 225674.00 225674.00 225674.00
5 Net addition to fixed asset during the year {from 1.18(a)} of Annexure – 1 at Volume - IIB 235018.00 138743.00 90281.00
6 Normative addition to Equity base {30% of (5)} 70505.00 41623.00 27084.00 7 Addition to equity base considered for the year lower of (3) and (6) 0 0 0 8 Admissible equity base at the end of the year (2) + (7) 225674.00 225674.00 225674.00
9 Average admissible equity base to be considered for return {(2) + (8)}/2 225674.00 225674.00 225674.00
10 Rate of return considered 16.5% 16.5% 16.5% 11 Return on equity (ROE) 37236.21 37236.21 37236.21
The opening equity base of 2015-16 and 2016-17 will be subject to change
during the truing up in APR of the respective year and will be the closing balance
of the equity base in the APR of the preceding year of the particular respective
year.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 121
5.15 Income from Non-Tariff Sources
The income from non-tariff sources comprising rental of meters and other
apparatus, delayed payment surcharges, interest from investment income etc. as
projected by WBSEDCL as Rs. 34399.42 lakh, Rs. 35306.48 lakh and Rs.
37035.86 lakh for 2014-15, 2015-16 and 2016-17 respectively which is admitted
by the Commission as it is found to be rational in consideration of the actual
income during 2012 – 2013.
5.16 Interest Credit
In terms of regulation 5.5.3 of the Tariff Regulations, WBSEDCL has proposed
Rs. 2009.00 lakh for 2014-15, Rs. 3183.44 lakh for 2015-16 and Rs. 3966.13
lakh for 2016-17 as interest credit to be refunded while determining the Net
Aggregate Revenue Requirement for the corresponding year in tariff as the
amount of chargeable depreciation is more than the amount of loan repayable for
those years. As the depreciation amount allowed in this order has been reduced
from the amount projected by WBSEDCL, thus the Commission computes the
amount afresh based on the depreciation allowed, the projected schedule of
repayment of loan and weighted average rate of interest of borrowings and
admits the same as shown below:
Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1. Depreciation Allowed 50301.00 61371.00 69042.00 2. Repayment as proposed 25126.00 26349.00 26395.00 3. Excess fund created 25175.00 35022.00 42647.00 4. Weighted average rate of interest of existing loan 9.2% 9.2% 9.2% 5. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52
In absence of any specific proposal from WBSEDCL and information about
break-up of repayment of the loan specific to generation and distribution, the
Commission decides to allocate the same in the proportion to depreciation
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 122
allowed to generation and distribution for respective years for both proposed and
admitted amounts as shown in the following table subject to final adjustment on
the basis of actual audited data in the APR for the concerned years.
Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1. Generation 418.41 536.72 653.58 2. Distribution System 1897.69 2685.30 3269.94
3. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52
5.17 Transmission charges payable to WBSETCL
WBSEDCL has asked for a provision for amounts of Rs. 112834.87 lakh in 2014-
15, Rs. 139700.17 lakh in 2015-16 and Rs. 145217.00 lakh in 2016-17 towards
transmission charges payable to the State Transmission Utility, i.e., West Bengal
State Electricity Transmission Company Ltd (WBSETCL) based on the tariff
application submitted by WBSETCL for the concerned year, the Commission has
finalized the amount of the Aggregate Revenue Requirement (comprising of all
its fixed charges) of WBSETCL and the same has come to Rs. 95537.89 lakh in
2014-15, Rs. 113879.69 lakh in 2015-16 and Rs. 117845.19 lakh in 2016-17. The
particulars will be available in the Commission’s order in Case No: TP-60/13-14
in regard to WBSETCL for the years 2014-15, 2015-16 and 2016-17. The
Commission accordingly allows a sum of Rs. 95537.89 lakh, Rs. 113879.69 lakh
and Rs. 117845.19 lakh payable by WBSEDCL to WBSETCL as transmission
charges in 2014-15, 2015-16 and 2016-17 respectively.
5.18 CTU Charges
The projection of WBSEDCL on CTU charges is Rs. 41177.00 lakh, Rs.
48054.00 lakh and Rs. 50963.00 lakh for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 as per newly introduced Point of Connection (POC) charge
method by CERC. As per annual accounts the amount paid in 2012-13 is Rs.
42594.00 lakh, which is as per POC method. Thus, the amounts admitted by the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 123
Commission for 2014-15, 2015-16 and 2016-17 are Rs. 41177.00 lakh, Rs
48054.00 lakh and Rs. 50963.00 lakh respectively and considered under cost of
distribution function only.
5.19 ERPC Charge
WBSEDCL has projected ERPC charge as Rs. 15.00 lakh, Rs. 15.00 lakh and
Rs. 15.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively. Such projected amounts are admitted by the Commission.
5.20 System operation charges payable to POSOCO
WBSEDCL has projected system operation charge payable to POSOCO at Rs.
410.00 lakh each year for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
which is admitted by the Commission.
5.21 SLDC Charges
WBSEDCL has projected SLDC charges as Rs. 2172.00 lakh, Rs. 2388.00 lakh
and Rs. 2619.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively. Such projected amounts are admitted by the Commission.
5.22 Adjustment of Amounts received towards Unscheduled Interchange (UI)
No amount on benefit from UI is considered as no energy on UI drawal is
projected by WBSEDCL for any ensuing year under the fourth control period.
However, any income from UI will be viewed on actual basis in the APR for the
respective years as per provisions of the Tariff Regulations.
5.23 Expenses attributable to Sale of energy to persons other than consumers and licensees of the Commission.
The expenses on this head as proposed by WBSEDCL has not been considered
as there is change in power purchase cost than that has been proposed by
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 124
WBSEDCL due to number of reasons as explained in this order. Moreover, the
quantum of sale to persons other than consumer and licensees are changed than
that has been projected by WBSEDCL as shown in energy balance
computations. Thus expenses attributable to sale of energy to persons other than
consumers and licensees of the Commission under fourth control period for
2014-15, 2015-16 and 2016-17 have been admitted as Rs. 130791.39 lakh, Rs
139664.28 lakh and Rs. 121188.13 lakh respectively considering average power
purchase cost of WBSEDCL for the respective years, subject to adjustments in
APR / FPPCA for the concerned years.
5.24 Sharing of benefits from sale of power to persons other than the consumers and licensees of the Commission:
Commission observes that due to volatile market the projections on such sale
have no compatibility at all with the actuals of the year. Due to the above reason
the projected tariff will be distorted if any gain sharing is considered on the basis
of such projected sale which ultimately provided an untrue perception in the level
of retail tariff that greatly affects the consumers, the licensees and power sector
as a whole. In order to remove such distortion in the tariff Commission decides
that in general the benefits from sale of power to person other than the
consumers and licensee of the Commission will be passed on to the consumers /
licensees on actual basis through APR of the concerned year only instead of
tariff order on projection basis.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 5A
West Bengal Electricity Regulatory Commission 125
Sheet – 1/2
Monthly Rate of Inflation in CPI number for Industrial Worker (%) Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Average
23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh CPI CSM 16.70 16.18 130.44 9.52 Yes 6.66 0.68 11.03 13.18 13.06
R is considered
as 0.5
24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh CPI CSM 16.70 13.18 NA 9.52 Yes 3.66 0.38 10.02 12.21 12.12
Note: $ The concerned period means the period of which CAGR has been considered as escalation rate for future escalation rate calculation.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 131
ANNEXURE – 5B Sheet 5/6
TABLE-3 COMPUTATION OF PROJECTED EXPENSESOF WBSEDCL DISTRBUTION FUNCTION FOR 4TH CONTROL PERIOD (2014-15 TO 2016-17)
Sl No Particulars Units
Projected Expenses for 2014-15 by WBSEDCL
Computed Expenses for
2014-15 by the Commission
Admitted Expenses
for 2014-15
Projected Expenses for 2015-16 by WBSEDCL
Computed Expenses for
2015-16 by the Commission
Admitted Expenses
for 2015-16
Projected Expenses for 2016-17 by WBSEDCL
Computed Expenses for
2016-17 by the Commission
Admitted Expenses
for 2015-16
1 Total line-length on 31st March CKM 536100.72 536100.72 614210.59 614210.59 703701.07 703701.07 2 Total consumers on 31st March number 13940250 13940250 13940250 15064240 15064240 15064240 16240567 16240567 16240567
FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED
Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO charge Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 CESC drawal as considered MW 620.00 330.00 385.00
10 Sharing of CESC (Sl. 9 x 100 ÷ Sl. 8) % 10.23 5.12 5.44
11 Sharing of Annual Fixed cost by CESC (Sl. 7 x Sl. 10 x 0.01) Rs. in lakh 51767.00 30534.00 34613.00
12 Monthly Fixed charge payable by CESC (Sl. 11 ÷ 12) Rs. in lakh 4314.00 2545.00 2885.00
ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100
5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19
6 Average energy cost of power by WBSEDCL Paise / unit 242.08 234.05 234.72
7 Energy price at delivery point to CESC Limited with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98
8 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00
9 Energy charge for sale of power by WBSEDCL to CESC (7+8) Paise / unit 260.00 252.00 252.00
Note: For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6E
West Bengal Electricity Regulatory Commission 146
ENERGY PURCHASE RATE OF CESC LIMITED FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017
i) The above fixed charge is subject to condition of change in agreed annual
maximum drawal as mentioned in paragraph 6.5.3 and paragraph 8.14 of
this order.
ii) In any day due to urgent necessity if any short term power is required by
CESC Limited, then CESC Limited can draw power more than the agreed
annual maximum drawal if WBSEDCL agrees and in that case CESC
Limited shall pay increased fixed charge for that day in proportionate to
actual additional drawal for that day. The additional fixed charge payable
for such day only will be as per following formula:
Additional fixed charge payable for a day due to drawal above the agreed
annual maximum drawal =
(Maximum drawal in MW during the day ÷ Agreed Annual Maximum
drawal) x (Monthly fixed charge for the month corresponding to the day
concerned ÷ number of days in that month).
iii) If in any month CESC Limited’s drawal is within the agreed annual
maximum drawal then CESC Limited shall pay the monthly fixed charge
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
147
as per table above. WBSEDCL shall, however, ensure that it makes
power available to CESC Limited at the level of agreed annual maximum
drawal every month.
iv) If in any case WBSEDCL fails to provide electricity on any day as per
requisitioned power within the agreed Annual Maximum drawal then for
that day the payable fixed charge will be proportionately reduced.
v) The above conditions may be changed as per the terms and conditions of
the PPA approved by the Commission in pursuance to the directions in
paragraph 8.14 of this order.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6F
West Bengal Electricity Regulatory Commission 148
FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL
Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 Contractual load of DPSCL MW 100.00 100.00 100.00
10 DPSCL’s drawal as considered in MW by taking Power Factor as MW 85.00 85.00 85.00
11 Sharing of DPSCL load (Sl. 10 x 100 ÷ Sl. 8) % 1.40 1.32 1.20
12 Sharing of Annual Fixed cost by DPSCL (Sl. 7 x Sl. 11 x 0.01) Rs. in lakh 7084.00 7872.00 7635.00
13 Monthly Fixed charge payable by DPSCL (Sl. 12 ÷ 12) Rs. in lakh 590.00 656.00 636.00 ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL
Sl. No. Particulars Units 2014-15 2015-16 2016-17 1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100 5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19 6 Average purchase cost of power by WBSEDCL Paise / unit 242.08 234.06 234.72
7 Energy price at WBSEDCL periphery with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98
8 Energy price at WBSEDCL periphery with HV loss [Sl.7 ÷ (1-0.08)] Paise / unit 274.66 265.78 266.28
9 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00 10 Wheel charge (See Annexure – H) Paise / unit 94.12 102.76 103.63
11 Energy charge for sale of power by WBSEDCL to DPSCL (8+9+10) Paise / unit 376.00 376.00 377.00
Note: 1) For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A 2) At sl. No. 8, additional loss of 8% is considered at HV level as per regulation related to Open Access over the transmitting loss.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6G
West Bengal Electricity Regulatory Commission 149
ENERGY PURCHASE RATE OF DPSCL FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017
i) The above fixed charge is subject to condition of change in agreed annual
maximum drawal as mentioned in paragraph 6.5.4 and paragraph 8.14 of
this order.
ii) In any day due to urgent necessity if any short term power is required by
DPSCL, then DPSCL can draw power more than the agreed annual
maximum drawal if WBSEDCL agrees and in that case DPSCL shall pay
increased fixed charge for that day in proportionate to actual additional
drawal for that day. The additional fixed charge payable for such day only
will be as per following formula:
Additional fixed charge payable for a day due to drawal above the agreed
annual maximum drawal =
(Maximum drawal in MW during the day ÷ Agreed Annual Maximum
drawal) x (Monthly fixed charge for the month corresponding to the day
concerned ÷ number of days in that month).
iii) If in any month DPSCL’s drawal is within the agreed annual maximum
drawal then DPSCL shall pay the monthly fixed charge as per table
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
150
above. WBSEDCL shall, however, ensure that it makes power available
to DPSCL at the level of agreed annual maximum drawal every month.
iv) If in any case WBSEDCL fails to provide electricity on any day as per
requisitioned power within the agreed Annual Maximum drawal then for
that day the payable fixed charge will be proportionately reduced.
v) The above conditions may be changed as per the terms and conditions of
the PPA approved by the Commission in pursuance to the directions in
paragraph 8.14 of this order.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6H
West Bengal Electricity Regulatory Commission 151
WHEELING CHARGE DETERMINATION FOR WBSEDCL Sl. No. Particulars Units 2014 - 2015 2015 - 2016 2016 - 2017
1 Employe cost Rs. in lakh 116668.92 129630.95 143914.242 Cost of outsourcing Rs. in lakh 27439.00 30078.00 33075.003 Operation and Maintenance expenses Rs. in lakh 40490.00 44464.00 48886.004 Rates and taxes Rs. in lakh 1388.00 1409.00 1484.005 Insurance Rs. in lakh 672.00 746.00 832.006 Interest on loan Rs. in lakh 34193.32 47210.76 55015.317 Interest on Bonds for pension fund Rs. in lakh 11742.00 11543.00 11469.008 Other finance charges Rs. in lakh 680.02 703.19 731.36
9 Depreciation (net of depreciation on metering and other asset) Rs. in lakh 35184.00 42651.00 47982.00
10 Taxes under Income Tax Act Rs. in lakh 823.90 906.26 996.9211 Return on Equity Rs. in lakh 37236.21 37236.21 37236.2112 Gross Fixed Charges Rs. in lakh 306517.37 346578.37 381622.04
13 Less: Non Tariff income related to distribution function Rs. in lakh 34399.42 35306.48 37035.86
14
Less Expenses incidental to selling and distribution of energy viz., meter reading & billing, collection franchisee cost, franchisee cost, complaint management mechanism for consumer, lease rental charges, data warehousing, back office job, franchisee cost, call centre cost, MCSU service, etc.
Rs. in lakh 14725.00 15997.00 17448.00
15 Interest credit Rs. in lakh 1897.69 2685.30 3269.94
16Net admissible Fixed Charge related to distribution for power transmission only (12-13-14-15)
Rs. in lakh 255495.26 292589.59 323868.24
A Sale to own consumers MU 24785.10 27232.10 29921.10B Sale to other licensees MU 2010.00 830.00 885.00C Sale to licensee below EHV MU 333.90 394.20 431.30D Energy wheeled MU 15.64 15.64 15.64E Total sale of energy (A+B+C+D) MU 27144.64 28471.94 31253.04F Wheeling charge (16/E) paise / unit 94.12 102.76 103.63
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6I
West Bengal Electricity Regulatory Commission 152
REVENUE INCOME CALCULATION FROM LICENSEE & SIKKIM
DETAIL CALCULATIONS OF RECOVERABLE AMOUNT FROM LICENSEES AND SIKKIM FOR 2014-15 Licensee Energy in MU Revenue (Rs. in lakh)
AMOUNT RECOVERABLE FROM BULK SUPPLY DURING FOURTH CONTROL PERIOD
ENERGY SALE BY WBSEDCL TO OTHER LICENSEE OF WEST BENGAL AND SIKKIM
Sl. No.
PURCHASER OF POWER
ENERGY SALE IN MU REVENUE IN Rs. LAKH 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
1 SALE TO CESC 1810 630 685 106670.00 46410.00 51875.00 2 SALE TO DPSC 333.90 394.22 431.30 19105.00 22695.00 23895.00 3 SALE TO DPL 200.00 200.00 200.00 11260.00 12380.00 13620.00
(Urban) and consumers covered under A (Cm-II), A (Cm-III), A (Cm-PU) and A
(Cm)-CP will fall under L&MV Commercial consumers (below 50 KVA). Government school will also fall under L&MV public utility consumers.
The tariff schedule as applicable to the consumers of WBSEDCL in the year
2014 – 2015 is given at Annexure – 7A1 for LV and MV consumers under
quarterly billing cycle, at Annexure – 7A2 for LV and MV consumers under
monthly billing cycle and at Annexure – 7A3 for HV and EHV consumers. Two
new rates T(M) and D-ID have been introduced. The Commission has decided
to give certain directives to WBSEDCL on various matters. These are to be
found at Chapter – 8. Except rate B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT,
D-ID and D-IDT, all the rates under L&MV category are applicable for the
supply below 50 KVA. Details of different tariff schemes of different classes of
consumers and various associated terms and conditions are specified in
various regulations and in Annexure – C1 and Annexure – C2 of the Tariff
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
156
Regulations. Other associated conditions of tariff of WBSEDCL for 2014 –
2015 shall be as follows:
7.2.1 Load Factor Rebate/ Surcharge:
7.2.1.1 In order to reduce the overall system T&D loss and to flatten the load curve by
improving the existing system load factor of WBSEDCL, the voltage-wise
graded load factor rebate applicable for the EHV and HV industrial consumers
and L&MV industrial consumer under rate (B-IDI and B-IDIT) will be as per the
following table:
LOAD FACTOR REBATE (Paise / kWh) For the Year 2014-15
Range of Load Factor (LF) Supply Voltage Below 33 kV 33 kV Above 33 kV
Above 55% Up to 60% 1 2 3 Above 60% Up to 65% 7 8 9 Above 65% Up to 70% 14 29 39 Above 70% Up to 75% 20 35 45 Above 75% Up to 80% 25 40 50 Above 80% Up to 85% 30 45 55 Above 85% Up to 90% 35 50 60 Above 90% Up to 92% 40 55 65 Above 92% Up to 95% 45 60 70 Above 95% 50 65 75
The above load factor rebate shall be applicable on total quantum of energy
consumed in the billing period. (For example a 33 kV industrial consumer at
85% load factor shall be eligible for a rebate @ 45 paise / kWh on the total
quantum of energy consumed in the billing period).
7.2.1.2 Industrial consumer whose contract demand is 1.5 MVA or above will get
additional rebate as per following table subject to the condition that payment is
Cottage Industry / Artisan / Weavers / Small production
oriented establishment not
run by electricity as motive power
Rate A(CM-II) Normal
Public utility/ Specified Institution
Public Bodies
NOT APPLICABLE
669
10.
54
12Rate
A(CM-III) PPT
Prepaid - TOD
23.00 hrs to 06.00 hrs.
06.00 hrs to 17.00 hrs
Normal
Poultry, Duckery, Horticulture, Tissue
culture, Floriculture, Herbal – Medicinal – Bio-
diesel Plant Farming, Food
Processing Unit
Rate A(CM-III)
300
Next 300
First
above 600
Above 900
9.
17.00 hrs to 20.00 hrs.
NOT APPLICABLE
626
626
731
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 169
Energy Charge
Energy Charge
P/kWh P/kWh
1. Lokdeep / Kutirjyoti Rate A(DM-K)
Rs. 46 per consumer per
month
2. Labour Line (Domestic )
Rate A(DM-L) 586 10
06.00 hrs to 17.00 hrs
All units 403 All
units 39317.00 hrs to 23.00 hrs.
All units 778 All
units 73523.00 hrs to
06.00 hrsAll
units 261 All units 279
4.
Irrigation pumping for Agriculture (Metered
supply from mixed HV feeder )
Rate C(A) 459 20
Rs 242 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 311 / KVA/ Month (but not less than Rs. 1500.00 per month )Rs 288 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 391 / KVA/ Month (but not less than Rs. 1800.00 per month)
Sl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Irrigation pumping for Agriculture (Un-
Metered)Normal
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Rate C(T) Normal TOD
All units
Rate C(B)
Submersible in Other District
STW in Other District
Submersible in NB
Normal
Irrigation pumping for Agriculture (Metered)
STW in NB
Normal 0 to 25 NOT APPLICABLE NOT APPLICABLE
Normal All units NOT APPLICABLE
20
5.
3.
NOT APPLICABLE
20
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
Rate C(t)ppt
Prepaid - TOD
06.00 hrs to 17.00 hrs
NOT APPLICABLENOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 170
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
06.00 hrs to
17.00 hrsAll
units 71817.00 hrs to 23.00 hrs.
All units 873
23.00 hrs to 06.00 hrs
All units 679
06.00 hrs to 17.00 hrs
All units 471
17.00 hrs to 23.00 hrs.
All units 849
23.00 hrs to 06.00 hrs
All units 303
06.00 hrs to 17.00 hrs
All units 718
17.00 hrs to 23.00 hrs.
All units 921
23.00 hrs to 06.00 hrs
All units 677
06.00 hrs to 17.00 hrs
All units 728
17.00 hrs to 23.00 hrs.
All units 796
23.00 hrs to 06.00 hrs
All units 685
46 NOT APPLICABLE
Rate C(T) - STIS 20Prepaid- TOD
Rate A(CM)-STCP
Prepaid - TOD
46
NOT APPLICABLEShort Term Irrigation Supply
Rate A(CM) - CP Prepaid- TOD
Short Term supply for Commercial Plantation
Commercial Plantation
7.
8.
6.
Prepaid- TOD
Rate A(ST) NOT APPLICABLE9. Short-term Supply 46 NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 171
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
All Units 662
All Units 993
All Units 457
Next 1500 720 All Units
All Units 435
Next 1500 735 All Units 934
Above 2000 765 All Units 440
13. Street Lighting Rate D(1) 620 54
14. Street Lighting with LED Rate D(2) 436 54
NOT APPLICABLE
23.00 hrs to 06.00 hrs
06.00 hrs to 17.00 hrs
NOT APPLICABLE
NOT APPLICABLE
30
06.00 hrs to 17.00 hrs
659600
610
Above
30
745
All Units
92317.00 hrs to 23.00 hrs30
Normal - TOD
23.00 hrs to 06.00 hrs
17.00 hrs to 23.00 hrs
NOT APPLICABLE
NOT APPLICABLE
Rate B(I-U) t
667
Rate B(I-R) t
Normal - TOD
Normal
Rate B(I-U)
On all Units
First 500
Public Water Works & Sewerage System
NormalRate B(I-R)
First 500
2000
Normal On all Units
Normal
10.
Industry (Urban)
11. Industry (Rural)
12.
Rate B (II) 675On all Units
30
30Normal NOT APPLICABLE30
06.00 hrs. – 17.00 hrs. &
20.00 hrs - 23.00 hrs.
Rate B(II) tpp
Prepaid - TOD 17.00 hrs to
20.00 hrs.
23.00 hrs to 06.00 hrs
All Units
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 172
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
On all Units 660
On all Units 721On all Units 617
06.00 hrs to 17.00 hrs
On all Units 742
17.00 hrs to 23.00 hrs
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
06.00 hrs. – 17.00 hrs. & 20 .00 hrs to
23.00 hrs
On all Units 742
17.00 hrs to 20.00 hrs.
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
NOT APPLICABLE
680On all Units
NOT APPLICABLE
54
23.00 hrs to 06.00 hrs
17.00 hrs to 20.00 hrs
Normal - TOD
06.00 hrs to 17.00 hrs & 20.00 hrs to 23.00 hrs
54
16.
17.
Rate D(5)
Construction Power Supply 46
Prepaid- TOD
Prepaid-TOD
46
Rate D(4)
Rate D(6)
Normal
Emergency Supply
Private Educational Institutions and
Hospitals15.
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLERate D(4) t
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 173
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
On all Units 649
On all Units 709
On all Units 596
06.00 hrs. – 17.00 hrs. & 20 .00 hrs to
23.00 hrs
On all Units 742
17.00 hrs to 20.00 hrs.
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
On all Units 649On all Units 909On all Units 428On all Units 673On all Units 942On all Units 444On all Units 619On all Units 867On all Units 409On all Units 547On all Units 766On all Units 361
3017.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
23. 255
255
06.00 hrs. – 17.00 hrs.
23.00 hrs to 06.00 hrs
22. Domestic consumers
(50 KVA and above but upto 125 KVA)
Rate D- ID Normal All units 638 30 Rate C- IDT Normal TOD
06.00 hrs. – 17.00 hrs.
588All unitsNormal
Other than Industrial ,Commercial and
Domestic consumers (50 KVA and above but
upto 125 KVA)
Rate C- ID
06.00 hrs. – 17.00 hrs.
NOT APPLICABLE
255
Normal TOD
Normal - TOD 54
23.00 hrs to 06.00 hrs
06.00 hrs to 17.00 hrs
17.00 hrs to 23.00 hrs
Rate C- IDT 255Normal TOD
06.00 hrs. – 17.00 hrs.
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
NOT APPLICABLE17.00 hrs to 23.00 hrs.
NOT APPLICABLE
Normal All units 54656
Bulk Supply at single point to Co-operative
Group Housing Society for providing power to its members or person for providing power to its employees in a single
premises
Rate D(7)18.
Note :- * Fixed Charge will be applicable for the Consumer having Contract Demand below 50 KVA and Demand Charge will be applicable for the consumer having Contract Demand of 50 KVA and above.
NOT APPLICABLERate D(7)t
NOT APPLICABLE
21. Commercial consumers (50 KVA and above but
upto 125 KVA)Rate B- IDC Normal
20. Industrial consumers
(50 KVA and above but upto 125 KVA)
Rate B- IDI Normal TOD255 Rate B- IDITNormal
Rate B- IDCT
657
All units 680
All units
46Prepaid - TOD
255
19. Common Services of Industrial Estate Rate D(8)
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 174
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
06.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs All Units 895 892 88923.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 45506.00 hrs-17.00 hrs All Units 681 680 67917.00 hrs-23.00 hrs All Units 953 952 95123.00 hrs- 06.00 hrs All Units 450 449 44806.00 hrs-17.00 hrs All Units 653 651 64917.00 hrs-23.00 hrs All Units 934 931 92823.00 hrs- 06.00 hrs All Units 440 439 437
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Industries (11 KV)
Industries (33 KV)
320
Normal - TOD
595 593 591
581
Rate F(bt)
320
Normal - TOD
All Units 583
Rate E(BT)
3
320
2
4
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
320Normal - TOD
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
612 610
Name of the Tariff
Scheme
Rate E(AT)
All Units
Sl No
Type of Consumer
Applicable Tariff Scheme
1 All Units 614Rate E(A) 320NormalPublic Utility (11 KV)
(Rs./ KVA/ month)
667
320603 601
685
665 Normal - TOD 320
579
320
Rate F(AT)Public Utility (33 KV)
All Units
686
605
669
687
All Units
Rate F(B)
Rate E(B) Normal
Rate F(A) Normal
Normal
All Units
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 175
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 645 643 64117.00 hrs-23.00 hrs All Units 921 918 91523.00 hrs- 06.00 hrs All Units 434 432 431
06.00 hrs-17.00 hrs All Units 585 583 58117.00 hrs-23.00 hrs All Units 855 852 84923.00 hrs- 06.00 hrs All Units 400 399 39806.00 hrs-17.00 hrs All Units 565 563 56117.00 hrs-23.00 hrs All Units 827 824 82123.00 hrs- 06.00 hrs All Units 390 389 38806.00 hrs-17.00 hrs All Units 637 635 63617.00 hrs-23.00 hrs All Units 963 960 96223.00 hrs- 06.00 hrs All Units 356 354 35506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461
Industries (400 KV)
NOT APPLICABLE
667All Units
7
Rate H(BT)
29Rate S(GT)
Rate H(B) Normal
320Rate J(BT)
663
Rate S(CPT)9
5 Industries (132 KV)
Commercial Plantation
Normal - TOD
Community Irrigation/ Irrigation
8 Normal - TOD
Industries (220KV) Rate I(BT) Normal -
TOD
Normal - TOD
6 NOT APPLICABLE
320
NOT APPLICABLE
Normal - TOD665
320
NOT APPLICABLE
320
320
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 176
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 677 673 67517.00 hrs-23.00 hrs All Units 1026 1020 102323.00 hrs- 06.00 hrs All Units 376 374 37506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461
06.00 hrs-17.00 hrs All Units 652 650 64817.00 hrs-23.00 hrs All Units 978 975 97223.00 hrs- 06.00 hrs All Units 372 370 36806.00 hrs-17.00 hrs All Units 650 649 64817.00 hrs-23.00 hrs All Units 975 974 97223.00 hrs- 06.00 hrs All Units 395 394 393
Rate S(CPT-ST) NOT APPLICABLE
NOT APPLICABLE
668 Normal - TOD
Rate E( CT ) 320
320Normal - TOD661663 320
Short Term Supply for
Commercial Plantation
Rate F(CT)
All UnitsRate F( C ) 665
Short Term Irrigation Supply10
670All Units
11
13 Normal
Commercial (11 KV)
Rate E( C )12
Commercial (33 KV)
320
320
Rate S(GT-ST)
Normal
Normal - TOD
Normal - TOD
29
666
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 177
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 641 639 63717.00 hrs-23.00 hrs All Units 962 960 95823.00 hrs- 06.00 hrs All Units 386 384 38206.00 hrs-17.00 hrs All Units 667 665 66317.00 hrs-23.00 hrs All Units 750 748 74623.00 hrs- 06.00 hrs All Units 612 610 60906.00 hrs-
17.00 hrs &
20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 894 891 88823.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-
17.00 hrs &&
20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 454
610
659
Normal - TOD
320Normal - TOD
30
603
657
320
320
612 Rate E(PWT)
Normal - TOD
Rate H(CT)
30
320
Rate S(DT)
Normal - TOD
605Rate F(PW)
All Units 661Rate H(C)
17
688 686690
601
15
Public Water Works &
Sewerage (33 KV)
Normal All Units
All UnitsNormalPublic Water
Works & Sewerage
(11 KV)
All Units
614
14
16 Rate E (PW)
Domestic
Commercial (132 KV)
Normal
Normal
Rate S(D)
583 581 579
All Units
All Units
Rate F(PWT) 320
595 593 591320
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 178
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 564 563 56217.00 hrs-23.00 hrs All Units 789 788 78623.00 hrs- 06.00 hrs All Units 372 371 370
06.00 hrs-17.00 hrs All Units 697 695 693
17.00 hrs-23.00 hrs All Units 979 976 973
23.00 hrs- 06.00 hrs All Units 463 461 45906.00 hrs-
17.00 hrs & 20.00 hrs.- 23.00 hrs
All Units 697 695 69317.00 hrs-20.00 hrs All Units 979 976 97323.00 hrs-06.00 hrs All Units 463 461 459
NOT APPLICABLE
NOT APPLICABLE320
Sports Complex & Auditorium run by
Govt./ local bodies for
cultural affairs
Rate S(C )
Normal-TOD
Construction Power Supply
Rate S(CON)
Rate S(ES)
Normal-TOD
20
18
Cold storage or Dairies with
Chilling Plant
Rate S(F)19
Normal
320
All Units
581All Units 580Normal
29
320
695 693
579
21
Emergency Supply
696
NOT APPLICABLE
320Normal - TOD
Rate S(ft)
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 179
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs
All Units 682 680 67817.00 hrs-23.00 hrs
All Units 751 749 747
23.00 hrs- 06.00 hrs All Units 620 618 616
06.00 hrs-17.00 hrs & 20.00 hrs.- 23.00 hrs
All Units 717 715 713
17.00 hrs-20.00 hrs All Units 1004 1001 99823.00 hrs-06.00 hrs All Units 583 582 581
24 Traction (25 KV) Rate T (A) Normal 691 689 686 320
25 Traction (132 KV) Rate T (B) Normal 669 667 664 320
26 Metro Rail Rate T (M) Normal 693 688 683 8806.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 977 97523.00 hrs- 06.00 hrs All Units 463 461 459
06.00 hrs-17.00 hrs All Units 722 720 71817.00 hrs-23.00 hrs All Units 795 793 79123.00 hrs- 06.00 hrs All Units 657 656 655
All Units NOT APPLICABLE
Rate S(ST)
Rate E (ct-ei)
Normal - TOD320734 732 730
All Units
320
All Units 320
NOT APPLICABLE
NOT APPLICABLE
28 Private Educational Institutions
Rate E (C-EI) Normal
27 Short-term Supply Normal - TOD
All Units
Rate S(cot)
320Normal - TOD
Rate S(CO)
23Common Services
of Industrial Estate
Rate E (CT-CS)
22
Bulk Supply at single point to Co-operative Group Housing Society
for providing power to its members or person for
providing power to its employees
in a single premises
Normal 709 705707 29All Units
NOT APPLICABLE
NOT APPLICABLE
29Normal - TOD
Tariff order of WBSEDCL for the year 2014 – 2015
CHAPTER – 8
DIRECTIONS
West Bengal Electricity Regulatory Commission
180
8.1 The Commission has given some direction in different paragraphs in Chapter 4
and Chapter 5 of this order while determining the fixed cost of WBSEDCL.
WBSEDCL shall comply with those directions. WBSEDCL shall also comply with
the following directions:
8.2 In view of the fact that WBSEDCL failed to submit their tariff application complete
in all respect for the fourth control period within the target date of 30th
The Commission has decided that in future any delay in submission of tariff
application by any distribution licensee for any control period beyond the 4
November,
2013 as per provisions of the Tariff Regulations thus for the said period no
carrying cost has been and will be provided for the enhanced part of the tariff
during 2014-15.
th
Further, it is also required to be noted that any delay with or without the approval
of the Commission in submission of either of the applications of APR or FPPCA
of any year (Y) within the target date as specified in the Tariff Regulations of the
following year may result into non-inclusion of the impact of APR and/or FPPCA
order in the concerned tariff order of the year Y+2. In such case, the impact will
be considered in any future year beyond (Y+2) year as applicable without any
control period or any year as applicable will result in not providing any increase in
tariff for equal number of days and thus the under recovery due to such measure
will not be allowed to be passed through any tariff mechanism or during truing up
in Annual Performance Review (APR) or Fuel & Power Purchase Cost
Adjustment (FPPCA). Moreover henceforth any delay in submission in APR or
FPPCA application shall not be considered as ground for delay by the licensee
for submission of tariff application.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
181
allowance for carrying cost, if otherwise applicable. Thus, in filing of
application(s) / petition(s), the licensee is required to maintain the relevant time
schedule(s) as specified in the Tariff Regulations.
It may be further noted that the arrear amount that is to be recovered in a single
or number of installments as will be determined by the Commission for any
financial year due to issuance of delayed tariff order as consequence to delayed
submission of tariff application by the licensee will not be provided with any
carrying cost.
The Commission also observed that during truing up in the APR order of the
distribution licensees and in the Fuel Cost Adjustment (FCA) of the generating
company, a considerable amount is further recoverable by the licensees and the
generating company even after realization of MVCA or MFCA during the year. It
appears that the distribution licensees and the generating company have failed to
understand the true spirit of introduction of the MVCA and MFCA and they are
not considering the eligible cost in computation of their MVCA or MFCA as per
the formula specified in the Tariff Regulations properly. The Commission in terms
of regulation 5.8.12 of the Tariff Regulations directs WBSEDCL to compute their
MVCA taking into consideration the related cost in its true sense keeping in their
mind the true spirit of introduction of such monthly adjustment failing which the
Commission will think not to allow such adjustment in full in future or not to pass
the amount as found recoverable on account of FPPCA during truing up in APR
for WBSEDCL.
8.3 WBSEDCL shall note that as already MVCA has been introduced thus the
amount that be claimed in FPPCA at the end of any year is not expected to be
higher than the summated value of following factors:
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
182
i) impact due to rounding off as per note (f) under the sub- paragraph (e)
of paragraph (A) of Schedule - 7B of the Tariff Regulations against the
applicable MVCA for the month of February and March of that year,
ii) impact due to non-recovery of any additional fuel cost of March of any
year over and above what is recovered on the basis of MVCA as
calculated from data of February due to the fact that MVCA calculated
on the basis of data of March is become applicable for next financial year
only, and
iii) impact due to application of disallowance of cost as per FPPCA formula
at FPPCA determination stage.
Thus in such case if recoverable amount under FPPCA of any year is found to be
higher than the above referred summated value, then such excess amount will
be dealt as per direction already issued by the Commission vide its order in case
no. SM-10/14-15 dated 18.07.2014. In this context it is also to be noted that such
excess amount represent the amount that would have been collected through
MVCA and thus not raising of such bill may result into distorted merit order
dispatch in the system. In fact, by virtue of this type of practice there is high
possibility of vitiating the environment of merit order dispatch in the whole supply
chain in West Bengal power sector and thereby affecting the economic load
dispatch in the systems. As a result ultimate sufferer will be the retail consumers
of West Bengal. In view of the above discussions, no carrying cost will be
allowed by the Commission in case of creation of such excess amount as
regulatory asset through FPPCA. Whenever such excess amount is released in
number of installments then also it will not be entitled to any carrying cost.
However, this direction shall not be construed as an approval of such delayed
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
183
claim of excess fuel cost through FPPCA instead of MVCA and such matter will
be dealt as per direction already issued by the Commission vide its order in case
no. SM-10/14-15 dated 18.07.2014.
8.4 While declaring MVCA for any month henceforth WBSEDCL shall follow the
following directions:
a) Irrespective of change in MVCA in any month from the previous month,
the detailed calculation sheet of MVCA prepared for the purpose of
determination of MVCA for that month as per regulation 5.8.9 of the Tariff
Regulations shall be submitted to the Commission within seven days of
notification of the MVCA or in case of no notification within thirty days
after the end of the month under consideration for MVCA. Such
calculation sheet shall also specifically mention the received fuel bill
which has not been considered or partly considered in the said MVCA in
pursuance to note (g) under sub- paragraph (e) of paragraph A of
Schedule – 7B of the Tariff Regulations. WBSEDCL shall also upload
such calculation sheet in their web-site for each month and shall maintain
the same in the website till publication of the worksheet for the next
month.
b) In continuation of earlier order in case no: WBERC/A-35/2 dated 19-02-
2014 Commission again reiterated that WBSEDCL will publish the
notification of change of MVCA in terms of 4th paragraph of regulation
5.8.9 of Tariff Regulations in such daily newspapers which are widely
circulated in West Bengal. Any deviation in this regard will be seriously
viewed.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
184
8.5 While submitting the Fuel and Power Purchase Cost Adjustment (FPPCA)
application for any year WBSEDCL shall give a list of fuel bill or power purchase
bill which has not been claimed under MVCA calculation along with the
provisions of the Tariff Regulations under which such claim has not been done.
A further reconciliation statement shall be given to establish that WBSEDCL has
followed the direction of paragraphs 8.3 and. 8.4 above effectively.
In case of non submission of the above documents/ information the application of
APR will not be admitted.
8.6 While computing the renewable and cogeneration purchase obligations, the
energy generated from Solar roof-top photovoltaic power plants shall be
considered by any distribution licensee both on consumption side and as input
energy from renewable sources towards fulfillment of renewable and
cogeneration purchase obligations in terms of the Electricity Act, 2003 and the
relevant Regulations. The licensee is required to furnish suitable details in this
respect.
8.7 WBSEDCL shall submit a report within 01.10.2015 on the following issues:
i) Implementation problem in removing minimum 30 KVA load criterion on
eligibility for TOD conversion.
ii) Possibility of shifting of load of drinking water pumping station, drainage
station and other utility services to non-peak hours through TOD and
other Demand Side Management strategy.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
185
8.8 In the notes of Financial statement of Annual Accounts of 2014-15 and onward or
through Auditor’s Certificate, the following information is to be provided by
WBSEDCL in a manner as described below:
a) All the expenditure or cost element considered under tariff applications
are to be provided separately for distribution function and generation
function for the regulatory requirement.
b) The penalty, fine and compensation under Electricity Act 2003 shall also
be shown separately for distribution function and generation function.
c) Any fine, penalty or compensation in any other statute other than
Electricity Act 2003 shall be mentioned separately for distribution
function and generation function respectively along with the reference of
the statute.
d) The figure of AT & C loss for the years concerned in line with the
computation methodology as specified in Form 1.8 of the Tariff
Regulations is to be provided. Beside that AT&C loss calculated with
arrear recovery done for the period prior to the year for which the
account is prepared shall also be shown separately.
e) In the notes of the past Annual Accounts, Repair & Maintenance is shown
in three separate heads of distribution & metering, generation and other
heads. In future from Annual Accounts of 2014-15 and onward this ‘other
heads‘ to be specified in terms of specific activities.
In case of non submission of the above documents/ information the application of
APR will not be admitted.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
186
8.9 While submitting APR application of any ensuing year, WBSEDCL shall submit
the certificate from the statutory auditor of the annual accounts of the said year
for the following parameters:
a) Based on fixed asset register the parameters to be submitted are:
i) The distribution line length and transmission line (if any which is
essential part of distribution system as per section 2(72) of
Electricity Act 2003) length in CKM for each level of Voltage
related to the assets of WBSEDCL. For the asset which is not
owned by the WBSEDCL but maintained by WBSEDCL shall be
shown separately.
ii) Similarly the number of transformers and total installed capacity of
transformers in MVA or KVA for each category of transformers for
distribution system are to be provided.
b) For the year concerned under the APR the actual number of Consumers,
the consumption level in MU and total connected load in KVA for each
category of consumers on whom the tariff rate has been issued in the
tariff order of the year corresponding to the APR under consideration.
c) The figure of distribution loss and AT&C loss for the year concerned
under APR as per form 1.7 and 1.8 of the Tariff Regulations. Since such
value has not been given for 2011-12 and 2012-13 thus such value may
be submitted with the APR application of 2013-14.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
187
d) List of expenditure arisen on account of penalty, fine and compensation
due to non-compliance of any statute or statutory order along with the
reasons for each such type of penalty, fine and compensation.
e) A statement showing the manpower engaged in different field of activity
which is now outsourced partly or fully vis-à-vis the manpower engaged
from regular establishment against the respective field of activities.
f) Copies of the audited accounts of all the terminal benefit funds for the
year for which APR is under consideration in a complete shape and not
by any selective pages.
g) A statement showing monthly deposition in different terminal funds for the
year for which APR is under consideration in persuasion to the direction
given in paragraph 8.12 below.
h) The detail breakup of number of vehicles that covers all the three shifts of
a customer care centre, number of vehicles that covers only two shifts of
a customer care centre and number of vehicles that covers only one
shift of a customer care centre along with the respective expenditures
for such each category. Also give the number of total number of
Customer care centre and customer care center having Urban areas as
per definition in regulation 2.1(xxv) of SOP Regulations. The above
information shall be submitted in relation to MCSU services. For hiring
vehicle for high voltage services such data shall be submitted separately.
i) A detail breakup showing total expenditure and employee strength
against each level of all categories of employees including the whole
time directors of the board. If any director or employee discharge any
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
188
function of other companies also then the allocation of cost among the
companies shall be shown separately and distinctly against each level.
j) Henceforth with the application of APR, WBSEDCL shall also enclose
their compliance report on Renewable Purchase Obligation of power in
pursuance to clause 8 of the West Bengal Electricity Regulatory
Commission (Cogeneration and Generation of Electricity from
Renewable Sources of Energy) Regulations, 2013 or any of its
subsequent amendment or replacement in future.
In case of non submission of the above documents the application of APR will
not be admitted.
8.10 In case of expenditure at a level higher than the admitted amount under any
uncontrollable factor in this tariff order on account of fixed charges, while
submitting APR application of any ensuing year WBSEDCL has to justify such
higher expenditure in detail with supporting documents and evidence on the
basis of which the Commission will take its decision during truing up exercise and
it may be noted that without sufficient justification the excess expenditure may
not be admitted in the APR fully or partly. Similarly for controllable factors, where
applicable as per the Tariff Regulations, for the same reasons supporting
documents and evidence is to be submitted to justify their claim. While truing up
any uncontrollable factor on account of fixed charges, the actual business
volume parameter (Distribution line length or consumer strength) and actual
inflation rate to which such uncontrollable item is sensitive will be considered in
the same manner and principle as determined under the tariff order subject to the
limitation as per the Tariff Regulations. However, where applicable as per this
tariff order the ratio of expenses increase in % on any item and the sensitivity
parameter increase will remain the same as that of this tariff order.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
189
8.11 While submitting application for APR of 2014-15 and onwards by any licensee, if
such application shows any net claim for that year after considering the
concerned FPPCA, then in such case the licensee shall suggest in specific terms
the ensuing year(s) in which they intend to recover such claim and by what
amount. The Licensee shall also show the consequential impact of such recovery
in the expected average cost of supply in those ensuing years after considering
the total revenue recoverable through the tariff. The total revenue recoverable
through the tariff means the summated amount of the Net Aggregate Revenue
Requirement plus all other amount on account of any release of regulatory asset,
FPPCA and APR of its own and FCA of WBPDCL as applicable for any year
which is being already decided by the Commission in earlier orders. They shall
also mention the carrying cost, if necessary, where it is applicable in terms of the
Tariff Regulations and different orders and direction of the Commission in this
respect. This consequential impact on tariff shall also be provided in the gist of
the APR application.
In case of non submission of the above information the application of APR will
not be admitted.
8.12 The fund released for terminal benefit fund in the ensuing year of 4th
Rs. in lakh
control
period are as follows:
Sl No Particulars 2014-15 2015-16 2016-17 1 Interest on bonds for Terminal Benefits to employees 13005.00 13005.00 13005.00
2 Release of Regulatory Asset for terminal benefit as mentioned in paragraph 6.2(v) of this MYT order
4703.68 36000.00 31000.00
3 Terminal benefits as per MYT order of 4th34785.50 control
period 37629.45 43072.49
Total 52494.18 86634.45 87077.49
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
190
In order to ensure that in future actuarial valuation of terminal benefit fund can be
kept in control in a better way by avoiding carrying cost of such liability in future
the following is to be adhered to:
a) WBSEDCL shall ensure that henceforth at least one-twelfth of the amount
on account of terminal benefit as shown in serial no. 1 of the table above,
as a part of employee cost admitted in the tariff order, is to be deposited
in different terminal benefit funds every month as a first charge item. This
process will also continue beyond 2014 – 2015 till issuance of next tariff
order.
b) It is to be noted that regulatory release of terminal benefit amount under
Sl. No. 2 of above table being a component of arrear amount recoverable
through number of installments, such amount is to be deposited in the
terminal benefit funds prospectively. The amount deposited in terminal
benefit fund from such arrear recovery in each future year shall also be
commensurating with the arrear recovered in that particular year on
monthly basis
c) WBSEDCL shall ensure that henceforth the amount that is statutorily
required to be deposited in a month in different fund on account of
terminal benefit as shown in sl. No. 3 of the table above, as a part of
employee cost admitted in the tariff order, is to be deposited in different
terminal benefit funds every month as a first charge item. This process
will also continue beyond 2014 – 2015 till issuance of next tariff order.
d) On the head of terminal benefit fund, if there is shortage in the deposit
amount in the terminal benefit fund admitted in employee cost through
this order, the balance amount of contribution to terminal benefit fund is
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
191
required to be deposited as first charge item over and above what had
already been deposited for the year 2014-15, from the effective date of
recovery of the recoverable amount against this order from the very first
day. So, it is directed that the balance amount of contribution as
discussed above to terminal benefit fund for the year 2014-15, i.e., the
difference between the amount of contribution to terminal benefit funds as
allowed in this order as a part of employee cost and that has already
been deposited in the fund for the year 2014-15 as is to be deposited in
the respective different terminal benefit funds. Such balance amount is to
be deposited in different terminal benefit funds in not more than 12
monthly equal installments from the date on which the recovery through
tariff against this order will start.
e) While submitting application for APR of 2014 – 2015, 2015-16 and 2016-
17, WBSEDCL shall show through audited accounts of different terminal
benefit funds that the contribution to the different terminal benefit funds
during the concerned year as a part of employee cost is duly deposited in
the terminal benefit funds.
In case of non-deposition of amount admitted for terminal benefit fund as
provided in (a) to (e) above in the respective fund as directed above,
Commission may withhold or deduct same amount equivalent to amount of non-
deposition.
8.13 In this tariff order it is considered that all type of compensation (as shown under
note no 27 of the Annual Accounts 2012-13) is the part of the other administrative & general expenses except Compensation to consumer. Similarly
loss on obsolete stores etc has also been considered as expenditure under Other
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
192
Administrative & General Expenses. Separately no such claim should be lodged
by WBSEDCL and compensation to consumers can never be claimed.
8.14 In view of two part tariff suggested by WBSEDCL for sale of power to CESC
Limited/DPSCL, the Commission has introduced two part tariff for purchase of
power by CESC Limited/DPSCL from WBSEDCL with a direction that WBSEDCL
shall enter into revised power purchase/sale agreement with CESC
Limited/DPSCL under regulation 7.3.1 of the Tariff Regulations in replacement of
the existing power purchase agreement. In the said two part tariff one part will be
fixed charge and other part will be energy charge. While two-part tariff structure
as determined under this tariff order is allowed at present from 01.03.2015 for
supply by WBSEDCL, there will be a reversion to single part tariff structure
unless the draft agreement as agreed by both WBSEDCL and CESC
Limited/DPSCL is submitted by CESC Limited/DPSCL to the Commission within
three months of the issue of this order.
The above agreement shall at least cover the following points:
i) The PPA shall mention clearly that the sale of power by WBSEDCL to
CESC Limited/DPSCL is in generation mode or trading mode or any other
mode that is permitted under Electricity Act 2003.
ii) The above PPA shall have an appropriate provision by which CESC
Limited/DPSCL shall give its requisitioned capacity for every year that
may be suitably fixed as terms and conditions of the PPA.
iii) Such agreement shall also have a provision containing the price and
other associated terms and conditions inclusive of tenure of agreement
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
193
for drawal of power by CESC Limited/DPSCL over and above the
contracted amount of the month in case of exigencies.
iv) As two part tariff has been introduced for purchase of power by CESC
Limited/DPSCL from WBSEDCL, thus in view of the skewed demand
pattern in CESC Limited’s/DPSCL’s area of supply, CESC
Limited/DPSCL shall try to sell power through trade mechanism under
any agreement (long term, short term or mid-term arrangement) to any
third party to reduce periods of idle capacity in a manner as permitted
under different regulations and Act. To protect the interest of all
stakeholder appropriate coverage of this issue shall be included in the
power purchase agreement as mentioned above and WBSEDCL shall be
obligated to supply energy whenever CESC Limited/DPSCL requisitions
such energy as per contracted capacity. The extent of such obligation
shall be clearly spelt out in the PPA in specific terms without keeping any
scope of interpretation. The agreement shall also provide for appropriate
consequences for failure to do so in a manner as is being safeguarded
under agreement between a generator and a licensee under two part tariff
mechanism.
v) In case WBSEDCL exceeds its renewable and cogeneration purchase
obligations in any year through purchase or otherwise in terms of the
relevant regulations, the agreement shall provide for a suitable
mechanism of transfer of such energy to CESC Limited/DPSCL by
assigning a part of the energy sold to CESC Limited/DPSCL by
WBSEDCL as contribution from non-conventional energy sources. The
Commission has taken this view as most of the renewable and
cogeneration sources being located outside the urban licensed area of
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
194
CESC Limited and DPSCL area and thus accessibility of renewable and
co-generation sources to CESC Limited/DPSCL is very limited. It will help
CESC Limited/DPSCL to meet their renewable and cogeneration
purchase obligation as CESC’s license area being an urbanized area and
as DPSCL is with a small licensed area resulting to both having less
potential of renewable and cogeneration sources. For sake of equity in
case of excess renewable and co-generation energy available with CESC
Limited/DPSCL then that can also be sold to WBSEDCL if WBSEDCL
requires so.
vi) The fixed charges payable by CESC Limited during the years 2014 –
2015, 2015 – 2016 and 2016 – 2017 are given in Annexure – 6E as per
this tariff order on the basis of agreed annual maximum drawal of 620
MW, 330 MW and 385 MW respectively for CESC Limited. In case as per
terms and conditions of the proposed PPA such agreed maximum drawal
is increased or decreased for any of the year then the monthly fixed
charge of that year mentioned above will be accordingly increased or
decreased in proportion to the increase or decrease in agreed annual
maximum drawal. Such changed fixed charge is to be incorporated in the
said PPA with reference to this direction and Annexure 6E of this order.
vii) The fixed charges payable by DPSCL during the years 2014 – 2015,
2015 – 2016 and 2016 – 2017 are given in Annexure – 6G as per this
tariff order on the basis of agreed annual maximum drawal of 85 MW
each year for DPSCL. In case, as per terms and conditions of the
proposed PPA such agreed maximum drawal is increased or decreased
for any of the year then the monthly fixed charge of that year mentioned
above will be accordingly increased or decreased in proportion to the
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
195
increase or decrease in agreed annual maximum drawal. Such changed
fixed charge is to be incorporated in the said PPA with reference to this
direction and Annexure 6G of this order.
Before execution of such agreement the draft agreement shall be submitted to
the Commission for scrutiny and approval. The approval will be accorded after
inviting suggestion and objection from the stakeholders and consideration of the
same. Only after getting such approval the agreement shall be executed.
8.15 In past number of distribution projects (such as APDRP, R-APDRP Part A) have
been undertaken where distribution loss reduction was targeted. Commission
directs that WBSEDCL shall prepare a report on such projects about
achievement and the learning from such project after post completion study of
the project. WBSEDCL has to also mention clearly the steps they are
undertaking from the experience of the earlier projects in their new but similar
types of projects such as R-APDRP part B project so that distribution loss
reduction target as envisaged in the project can be achieved. Such report shall
be submitted to the Commission alongwith the APR application for 2014-15 and
on the basis of that Commission will provide directions that in case of failure to
achieve the distribution loss target as envisaged in the project what the penal
measures will be.
8.16 Commission hereby directs that for interruption benefit calculation for HV & EHV
consumer henceforth WBSEDCL shall calculate such benefit on the basis of
interruption recorded in the outgoing feeder meter at the sub-station end.
However, in case of non-supply of electricity due to outages arising out of any
problem at the down-stream of the substation such outage as available from non-
supply of power recorded in the MRI records of the consumer meter shall also be
considered subject to condition that such outage is reported to the WBSEDCL
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and shall be counted for the period from time of reporting and restoration of the
outage by WBSEDCL.
8.17 From fourth control period the expenses on Complaint Management Mechanism,
collective expenses and lease rental expenses will be treated as Controllable
factor.
8.18 Every day by 11.30 a.m. WBSEDCL shall upload its initial drawal schedule as
per the format under Annexure – IV and also initial injection schedule (i.e.,
schedule of Actual Declared Capacity and Notional Declared Capacity including
the drawal schedule of Purulia Pumped Storage Project) in accordance with the
prevailing State Grid Code framed by WBERC for the next day in their website. If
necessary, for proper representation of the schedule in the website the format
can be altered with approval of the Commission. This schedule shall be kept in
the website till two months after the date of the order of the APR or FPPCA
whichever is later in relation to the year concerned to the day under discussion.
The website design shall be such so that the schedule of any date can be easily
fetched. This facility is to be made operational from 1st of April, 2015. WBSEDCL
is also directed to upload such schedule of every day from 1st April, 2014 to 31st
March, 2015 within 1st June 2015. This direction has been issued for sake of
transparency and to protect the interest of all the stakeholders in large
8.19 The Commission is statutorily duty bound to promote generation of electricity
from following sources of energy:
i) Co-generation of electricity from renewable sources.
ii) Co-generation of electricity from fossil fuel sources.
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iii) Co-generation of electricity from hybrid sources of fossil fuel /
conventional sources and renewable sources.
iv) Electricity generation from renewable sources.
In order to promote above mentioned type of generation of electricity by applying
regulations 8.3 and 8.4 of the Tariff Regulations and regulations 19.1 and 19.2 of
the West Bengal Electricity Regulatory Commission (Cogeneration and
Generation of Electricity from Renewable Sources of Energy) Regulations, 2013,
the Commission decides that from the APR of the ensuing year 2016 – 2017 a
deduction of 5% from Return on Equity will be done if WBSEDCL fails to comply
with the Renewable Purchase Obligation as per West Bengal Electricity
Regulatory Commission (Cogeneration and Generation of Electricity from
Renewable Sources of Energy) Regulations, 2013 or any of its subsequent
amendment. In this context, the Commission also directs that henceforth
WBSEDCL shall advertise on important national media inviting the interested
parties of supplying renewable and cogeneration electricity on every four months
for next two years instead of one time in a year in pursuance to the regulation 3.5
of the said Regulations.
8.20 Henceforth, any application for Power Purchase Agreement (PPA), except for
short term PPA meaning PPA for a period not exceeding one year, submitted by
any licensee to the Commission for approval of the PPA shall go through the
process of inviting suggestions and objections from all stakeholders through at
least three widely circulated newspaper publication for consideration of the
Commission of all such suggestions and objections as a process of the approval
procedure and subsequent to such approval only, the PPA can be executed by
the licensee and the seller of the power. For this purpose, while submitting the
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said PPA the licensee shall also give a draft gist for newspaper publication for
approval of the Commission. On getting approval of the Commission such gist
shall be published in the newspapers within 5 working days. Such gist shall also
be posted in the website along with the application and PPA from the date of gist
publication to at least the last date of submission of suggestions and objections
as will be mentioned in the gist. The gist shall cover the name of seller of the
power, type of specific source (such as coal, gas, hydro, solar, etc.), major
important parameters that are required under the Tariff Regulations for such
purchase and the important points of the purpose of such procurement. The
application submitted shall have the above points of the gist along with detailed
justification of such proposed procurement along with all the information and
parameters that are required under the Tariff Regulations or Regulations of the
Commission related to renewable and cogeneration sources of energy. The
application shall also clearly spell that how the interest of the consumer as well
as of the licensee has been safeguarded in the PPA. The application without
such gist and the points as mentioned shall not be admitted. This process is
done in order to meet the end of justice after keeping consistency with the
Electricity Act, 2003.
8.21 While submitting application of APR WBSEDCL shall also submit a detailed
calculation showing that revenue collected against the supply of electricity to
consumers at a rate below the tariff of this order in pursuance to the application
of paragraph 7.2.27 and concerned clauses of Tariff Regulations satisfying the
condition that the consumers covered by application of such paragraph through
the notification dated 23.09.2014 published by WBSEDCL have been supplied
electricity at a price not below the cost of supply to them and revenue recovered
from them is commensurating with such price as well as their consumption.
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WBSEDCL has also to establish that no loss on this head has been passed to
other consumers through the ARR determination process in the APR.
8.22 The cost of meter reading and billing paid to New Town shall be on transaction
basis. Accordingly, the agreement between WBSEDCL and its franchise shall be
amended.
8.23 As UI charge has been repealed and deviation charge is being introduced, the
Commission by applying regulation 8.3 of this Tariff Regulations will consider
N_UI_R as zero for applying the regulation 2.6.10 of the Tariff Regulations during
APR order for any ensuing year of the fourth control period.
8.24 The anomalies as mentioned in paragraph 3.7.2 shall be corrected and
accordingly the related information in requisite formats of Tariff Regulations shall
be submitted after considering the changes in actual consumption mix atleast
upto 2014 – 2015 in pursuance to paragraph (xi) of regulation 2.5.3 of the Tariff
Regulations along with APR for 2014 – 2015.
8.25 All the distribution licensees and generating companies shall follow regulation
5.6.5.1 of the Tariff Regulations in its true spirit. According to regulation 5.6.5.1 of
the Tariff Regulations the interest on working capital requirement of a generating
company or a licensee shall be assessed on normative basis @ 18% on a base
amount derived by summation of annual fixed charges, fuel cost and power
purchase cost reduced by certain elements of the ARR. It has also been
mentioned there that where Monthly Fuel Cost Adjustment (MFCA) or Monthly
Variable Cost Adjustment (MVCA) exists, in that case for interest on working
capital requirement the above normative basis shall be 10% instead of 18% on
the said base amount. In this context it may be noted by all stakeholders that any
distribution licensee or generating company on which collection of MFCA and
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MVCA, as the case may be, is applicable as per Tariff Regulations, shall not be
entitled to claim interest on the above referred normative basis of 18% even on
the plea of not claiming MFCA or MVCA throughout any financial year.