Combine Corrigendum and Tariff Order WBSEDCL 2007-08

TARIFF ORDER
OF THE
WEST BENGAL ELECTRICITY REGULATORY COMMISSION
IN CASE NO: TP 35 / 07 - 08
IN RE THE TARIFF PETITION OF WEST BENGAL STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED UNDER SECTION 64(3)(a) READ WITH SECTION 62(1) AND SECTION 62(3) OF THE ELECTRICITY ACT, 2003 FOR THE YEAR 2007 2008
DATE: 01.08.2007
Tariff Order of WBSEDCL for the year 2007 2008
CHAPTER - 1 INTRODUCTION
1.1 The West Bengal State Electricity Regulatory Commission (referred to as the Commission hereinafter) was constituted by the State Government of West Bengal in 1999 in pursuance of the Provisions of Section 17 of the Electricity Regulatory Commissions Act, 1998. The latter, along with the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 was repealed by dint of Section 185 of the Electricity Act, 2003, (referred to as the Act hereafter) which came into force with effect from 10th June 2003. The first proviso of Section 82(1) of the Electricity Act, 2003 has ensured continuity of the Commission along with that of all other State Electricity Regulatory Commissions by laying down that the State Electricity Regulatory Commissions established by a State Government under Section 17 of the Electricity Regulatory Commissions Act, 1998 (and a few other State enactments), and functioning as such immediately before the appointed date, shall be the State Commissions for the purposes of the Electricity Act,2003.
1.2
The functions of a State Commission have been specified in Section 86 of the Electricity Act, 2003. One of the main functions of a State Commission relates to determination of tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within a State. Further, Section 62(1) of the Act also requires the appropriate Commission to determine the tariff in accordance with the provisions of the Act, for supply of electricity by a generating company to a distribution Licensee, for transmission, for wheeling as also for retail sale of electricity.
West Bengal Electricity Regulatory Commission
Tariff Order of WBSEDCL for the year 2007 - 2008
1.3
The Commission has, therefore, all the powers and authority under the Electricity Act, 2003 to determine the tariff, as laid down in the Act, and these powers and authority are in continuation of similar powers and authority that were enjoyed by the Commission under Section 29 of the Electricity Regulatory Commissions Act, 1998.
1.4
The West Bengal State Electricity Board, a State Electricity Board constituted under Section 5 of the Electricity (Supply) Act 1948 after being reorganized in terms of Section 131 of the Electricity Act, 2003 has been replaced by (i) West Bengal State Electricity Transmission Company Limited and (ii) West Bengal State Electricity Distribution Company Limited w.e.f 1.4.2007 in accordance with a transfer scheme viz., West Bengal Power Sector Reforms Transfer Scheme 2007 notified by Govt. of W.B vide No.12-PO/O/III/3R-29/2006 dated 25.1.2007. Whereas the functions and business in transmission activities and load despatch activities have been transferred to and vested in West Bengal State Electricity Transmission Company Limited (hereinafter referred to as WBSETCL), the functions and business in distribution activities and activities related to hydro undertakings have been transferred to and vested in West Bengal State Electricity Distribution Company Limited (hereinafter referred to as WBSEDCL). Both WBSETCL and WBSEDCL are deemed to be licensee under the Electricity Act, 2003 in terms of fifth proviso to Section 14 of the Act and the area of operation for both WBSETCL and WBSEDCL covers the whole State of West Bengal excepting those areas of operation that are covered by other licensees. In exercise of powers conferred under Sub-section 1 of Section 39, the Govt. of W.B has notified and authorised vide No.89-PO/O/III/3R-5/2007 dated 26.3.2007 West Bengal State Electricity Transmission Company Limited to function as State Transmission Utility w.e.f 1.4.2007.
1.5
The Commission had determined the annual tariff in favour of West Bengal State Electricity Board for seven consecutive years starting from 2000-01. The tariff petition for the year 2007-08 on the basis of multi year framework in terms of West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2007 has now been submitted by West Bengal State Electricity Distribution Company Limited, one of the successor entities of West Bengal State Electricity Board. The petition is for determining the tariff for wheeling and retail sale of electricity for one year control period under multi year tariff framework.
1.6
It has been stipulated in clause 2.5.2 of the WBERC (Terms & Conditions of Tariff) Regulation 2007 that for first control period, filing of petition for tariff may be made 7 days before the commencement of the control period. In view of the fact that the successor Distribution Company of WBSEB came into existence from 1.4.2007, it was appealed by the petitioner that they may be allowed 30 days of additional time from the date of commencement of the control period, the date of commencement of control period being 1.4.2007. The Commission allowed 15 days of additional time to WBSEDCL for filing its tariff petition meaning thereby that the tariff petition of WBSEDCL shall be submitted to the Commission by 16.4.2007 (15.4.2007 being a holiday). WBSEDCL vide their letter No.C/DIR/COM/TARIFF/87/34 dated 16.4.2007 appealed for a further extension of time for seven days in view of the time required by them in segregating the cost of different elements between WBSETCL & WBSEDCL. The Commission accepted the appeal and allowed WBSEDCL to submit the Tariff Petition by 23.4.2007. Accordingly, the Commission has proceeded to admit the tariff petition of WBSEDCL on 25.4.2007 which was submitted to the Commission on 23.4.2007. The Commission, however, takes this opportunity to advise the petitioner that this additional time has been allowed to prepare the
tariff petition subsequent to the formation of WBSEDCL on 1.4.2007 only for the year 2007-08 and should not be taken as a precedence by WBSEDCL or any other licensee for future years.
1.7
The tariff petition in question admitted by the Commission was marked as No.TP-35 / 07-08. After admission of the same WBSEDCL was directed to publish the gist of the tariff petition as approved by the Commission in newspapers of which one will be in either Ananda Bazar Patrika or Bartaman, one in either The Statesman or The Telegraph, one in a Hindi daily with substantial readership in the State and one in an English daily with all India readership (preferably The Economic Times or the Business Standard). Accordingly, the gist of the petition was published simultaneously in Ananda Bazar Patrika, The Telegraph, Sanmarg, Business Standard, Aajkal and Bartaman on 1.5.2007.
1.8
While publishing the gist of the tariff petition, the insertions in the newspapers called upon all interested parties and members of the public to file objections or make comments on the petition. They were also afforded opportunities for inspection of the petition and take copies of the same in terms of the relevant provisions of the WBERC (Conduct of Business) Regulations, 2007.
1.9
Objections to / comments on the tariff petition, in question, received by the Commission within the stipulated period i.e. , 1.6.2007 have been described in short in Chapter 3.
CHAPTER - 2 THE CASE OF WBSEDCL

2.1 West Bengal State Electricity Distribution Company Limited (WBSEDCL) in its tariff petition has claimed that the aggregated assets and liabilities in WBSEDCL in terms of West Bengal Power Sector Reforms Transfer Scheme 2007 as notified by the Govt. of W.B has been considered for estimating expenditures under different heads.
2.2
WBSEDCL has further claimed that the said assets and liabilities were prepared as per the balance-sheet of West Bengal State Electricity Board as on 31.3.2006. After adjusting the transactions during the year 200607 the balance-sheet has been stated by the petitioner to have been recast as on 31.03.2007 to arrive at the opening balance for the year 2007-08.
2.3
According to the petitioner total equity of WBSEDCL is Rs.1942.00 crore as per the balance-sheet of erstwhile West Bengal State Electricity Board as on 31.03.2006. The petitioner has further claimed that actual equity of Rs.428.97 crore was added during the year 2006-07. Additional equity of Rs.906.97 crore has been projected by the petitioner for the year 200708. Average equity base computed by the petitioner for ARR for 2007-08 is Rs.2796.31 crore. A return on equity of Rs.391.48 has been claimed by WBSEDCL in the revenue requirement for the year 2007-08.
2.4
The petitioner has claimed to have attempted to reduce the crosssubsidies and rationalize the tariff for various classes of consumers in line with 61(g) of the Electricity Act, 2003.
2.5
The petitioner has claimed that metering upto 11 KV feeder had already been completed and the metering of distribution transformer has been taken up in a few circles. With the help of 100% feeder metering
endeavour is being made to reduce the ATC loss.
2.6
The petitioner has claimed that 100% metering for agricultural consumers was in progress and metering in respect of 24000 nos. agricultural consumers has already been completed upto February, 2007. The
petitioner has further claimed that from April, 2007 onwards revenue will be realized on the basis of recorded consumption from these agricultural consumers.
As claimed, the remaining agricultural consumers of the petitioner will also be brought under metered supply within April, 2008 and AT & C loss will get substantially reduced during the year 2007-08.
2.7
The petitioner has claimed that in accordance with restructuring plan for State owned utilities of West Bengal the AT & C loss of the petitioner will be steadily brought down within seven years from 36% to 24% in 2012, while collection efficiency shall improve from 91% to 97% during the same period.
2.8
The petitioner has claimed to have already strengthened security & loss prevention wing and decentralised these activities upto circle levels. Besides Corporate Wing and seventeen units at circle level, one unit has been claimed to have been created at Asansol in 2006-07.
2.9
High Voltage Distribution Supply (HVDS) has been claimed to have already been introduced for irrigation / agricultural consumers directly from distribution substation through L.T P.V.C cable. It has been claimed by the petitioner that such distribution substation of capacity of 10 KVA, 11/0.4 KV are being used to give supply to two nos. of S.T.W consumers. Similar scheme which is also being adopted for rural electrification will substantially reduce both technical & commercial loss.
2.10
To facilitate energy audit, mapping and documentation of entire power network of WBSEDCL with reference to geographical location including attributes of the attached equipment in the power network, Geographical Information System (GIS) has been claimed by the petitioner to be under progress in respect of total 232 nos. of supply stations of WBSEDCL and substantial progress in the said work is stated to have been made in 2006-07.
It has been claimed that after the completion of network documentation, application software CYMDIST available with the petitioner would be utilised to compute energy loss and the 33 KV & 11 KV network would be planned on the basis of load flow studies with the help of this software to reduce technical losses.
2.11
It has been claimed by the petitioner that spot billing facility for all category of L & MV consumers has been introduced as a pilot project for Garia Electric Supply, Dasnagar Electric Supply and Chandannagar Electric Supply. The petitioner expects to extend the facility gradually to
other Electric Supplies of WBSEDCL which will further reduce the total time for meter reading, preparation of bill & serving of bill.
2.12
In line with the restructuring plan for state-owned power utilities of West Bengal notified by the Govt. of W.B in September, 2006, 24.7% T&D loss has been considered by the petitioner to arrive at the estimated energy requirement for 2007-08. Based on the above facts distribution loss for WBSEDCL has been computed by the petitioner at 20.34%.
2.13
In view of the revocation of the distribution licence of Singur Haripal Rural Electric Cooperative Society Ltd. (SHRELCOP) by the West Bengal Electricity Regulatory Commission in terms of Section 19(2) of the Electricity Act, 2003 w.e.f 31.12.2005 and in view of the appointment of WBSEB as the administrator of the SHRELCOP utility, WBSEDCL, being the successor entity of WBSEB in distribution business, is acting as an administrator of the SHRELCOP utility from 1.4.2007.
The petitioner has claimed that while projecting total energy requirement, consumption of different categories of consumers of SHRELCOP has been clubbed in the projected consumption of WBSEDCL for the respective categories.
2.14
The petitioner has claimed that due to the implementation of the crash programme for rural electrification in line with the guidelines contained in National Electricity Policy, additional one lakh new domestic consumers would be connected in rural area during the year 2007-08.
2.15
Consumption under different categories of consumers during the year 2007-08 has been claimed by the petitioner to have been estimated from the trend in growth of consumption during the last three years for the respective categories. Accordingly, 6082 MU has been projected to be
consumed by the consumers under L & MV category whereas the consumption under HV & EHV category has been projected as 5730 MU. Total sale of energy to own consumers of WBSEDCL thus has been projected as 12,896 MU during the year 2007-08. Thus with 24.7% T&D loss, 4242.02 MU has been projected as T&D loss for the year 2007-08. Taking into consideration the energy utilized in own premises of the petitioner and the loss for wheeling of power through other licensees network, total energy requirement for the supply to its own consumers has been projected by the petitioner as 17178.76 MU.
2.16
The petitioner has projected sale of energy to other licensees like, CESC, DPSCL at the level of 945 MU during the period.
2.17
In terms of an agreement signed between the Govt. of W.B and Govt. of Sikkim, the petitioner has claimed that 80 MU of energy being 20% of the sent out generation from Rammam Hydel Station Stage-II would be supplied to Sikkim at sent out cost of generation of the said power station.
2.18
Sale of incidental surplus energy to others has been estimated by the petitioner at 5075 MU in the year 2007-08 taking into account additional surplus energy to be made available from the new projects after meeting requirement of own consumers, other licensees, Govt. of Sikkim and considering energy requirement of 1130 MU during pumping mode of
10
Purulia Pump Storage Project. With the claimed T&D loss of 24.7% in the system, WBSEDCL has computed its overall gross energy in its own system to be 24485.17 MU.
2.19
In terms of West Bengal Power Sector Reforms Transfer Scheme 2007, all the existing hydel power stations, all gas turbine units and diesel generation units with all associated equipments of WBSEB have been transferred to WBSEDCL from 1.4.2007. The Purulia Pump Storage Project (PPSP) has also been transferred to WBSEDCL from 1.4.2007.
2.20
Gross generation projected to be available from the hydel power stations of the petitioner has been projected to be 487 MU operating at average L.F of 35%. Low generation at TCF hydel power station has been attributed by the petitioner to the constraints stated to be due to noncompletion of Dauknagar main canal by I & W Deptt. A gross generation of 860 MU has been projected by WBSEDCL for the year 2007-08 from PPSP. It has been mentioned by the petitioner that the energy
requirement at the bus bar of PPSP for pumping mode operation will be 1130 MU during the year. No generation has been envisaged from the gas turbine and no cost for this station has been stated to have been considered by the petitioner for the year 2007-08. WBSEDCL is maintaining only one diesel generation plant at Rudranagar in Sagar Island. In view of the excessive cost associated with the diesel
generation, generation from this plant has been stated to have been restricted and supplemented by energy from non-conventional sources. Generation from diesel power station at Rudranagar has been projected during the year 2007-08 at 0.64 MU.
11
2.21
Total gross generation from own hydel sources, PPSP, diesel etc. has been projected by WBSEDCL to be 1347.64 MU for the year 2007-08. Considering 10 MU of auxiliary consumption and 4 MU of transformation loss net sent out energy from own generation sources has been projected at 1333.64 MU during the year.
2.22
To discharge the functions of a distribution licensee as a successor entity of WBSEB the petitioner has committed to continue with the purchase of power in the same manner as was being done by erstwhile WBSEB. Power purchases have been proposed by the petitioner from West Bengal Power Development Corporation Ltd. (WBPDCL), Durgapur Projects Ltd. (DPL), DPSCL, DVC, NTPC, NHPC, The Power Trading Corporation (PTC), Tala Hydro-electric Power. WBSEDCL also proposes to
purchase green power during the year from West Bengal Renewable Energy Development Agency (WBREDA) and from a few nonconventional energy sources & co-generation sources developed by private entrepreneurs.
2.23
Total gross energy purchased from all the above sources including 643 MU of energy purchased on radial basis from DVC at 33 KV and below, 153 MU of energy purchased from DPL at 33 KV and below, 160 MU of energy purchased from DPSCL, green energy from WBREDA and cogeneration sources has been projected by the petitioner to be 23359.52 MU. With the grid loss of 208 MU in the transmission system of
transmission licensee WBSETCL the net purchase has been projected for the year 2007-08 to be 23151.52 MU.
12
2.24
With net generation of 1333.64 MU and net purchase of 23151.52 MU, WBSEDCL claims to be able to meet its gross energy requirement of 24485.17 MU of 2007-08 including the losses in its own system.
2.25
The petitioner has projected Rs.4201.04 crore for total purchase cost of energy for the year 2007-08 out of which Rs.81.13 crore has been projected for purchase of infirm power from Sagardighi Thermal Power Station and Units IV & V of Bakreshwar Thermal Power Station of WBPDCL.
2.26
Transmission charges payable to WBSETCL for the energy required to be transmitted by the petitioner through WBSETCL system has been projected as Rs.409.61 crore while the payable handling charges @ 2% on transmission charges amounting to Rs.8.19 crore has been considered.
2.27
An amount of Rs.369.54 crore has been projected as employees cost after capitalization for the year 2007-08. WBSEDCL has justified their existing staff strength of 21109 as on 1.4.2007 to provide service to their consumers spread over the whole State mostly in rural and remote areas. The petitioner has further committed that the staff strength will be reduced to 20707 as assessed at the end of the financial year 2007-08 through general separation.
2.28
The petitioner has further claimed that the element of D.A has been considered as per order of Govt. of W.B issued from time to time in the
13
year 2006-07. The recent government order for merger of 50% of the D.A with the basic pay of the employees w.e.f 1.4.2007 has also stated to have been considered. It has been mentioned by the petitioner that any further rise in D.A during 2007-08 if announced by the State Government would be additional expenditure. The petitioner has further stated that O.T allowance is allowed only to the technical staff engaged to attend emergency breakdown beyond normal hours pointing out that disallowance of such payment would severely affect the quality of services.
2.29
The petitioner has projected repair & maintenance cost including consumables for the year 2007-08 to be Rs.94.48 crore. The petitioner has claimed that in order to deliver power at reasonable quality parameters and to reduce instances of outage APDRP scheme in distribution is under implementation. It has been confirmed by the
petitioner that in the year 2006-07 distribution assets of Rs.346.33 crore has been added from the fund of REDC and RGGVY while distribution assets of Rs.136.63 crore has been added from WBSEBs own fund in the year 2006-07. For the year 2007-08 WBSEDCL is stated to add
distribution assets of the order of Rs.690.00 crore from the fund of REDC and RGGVY while distribution assets of Rs.216.94 is expected to be added from the petitioners own fund. Considering the increased assets of distribution the petitioner has claimed additional R & M expenses during the year 2007-08 and has thus tried to justify the projected R & M expenses of Rs.94.49 crore in the year.
2.30
The petitioner has claimed that due to increased activities of consumer services, revenue monitoring, drive against theft of power etc. there would
14
be increase in administration and general expenses towards training and legal expenses, traveling expenses including vehicle hire charges etc. The petitioner has projected Rs.75.14 crore during the year 2007-08 to meet administration and general expenses including rent, rates & taxes, legal charges and auditor fees after capitalization.
2.31
While calculating the aggregate revenue requirement bad debts amounting to Rs.4.30 crore has been considered by the petitioner. The petitioner has appealed to allow the aforesaid amount because in the latest audited accounts of WBSEB for the year 2005-06 written off amount on account of bad debt has been shown as Rs.4.30 crore which is lower than 0.5% of the value of gross fixed assets at the beginning of the year 2007-08 which has been stipulated in the para 4.10.1 of WBERC (Terms & Conditions of Tariff) Regulation, 2007.
2.32
The petitioner has claimed that the cost of depreciation of assets of WBSEDCL which would be in service during 2007-08 has been computed annually on the basis of straight line method at rates prescribed in WBERC (Terms & Conditions of Tariff) Regulation, 2007 upto a maximum of 90% of the original cost of the assets. The depreciation has been projected for the year 2007-08 as Rs.217.61 crore.
2.33
Net interest after capitalization has been projected by the petitioner for the year 2007-08 at Rs.148.73 crore while other finance charges (net of capitalization) has been projected to be Rs.21.87 crore.
15
Interest for 2007-08 on bond for creation of pension fund has been projected by the petitioner as Rs.130.05 crore.
2.34
The petitioner has included a sum of Rs. 70.60 crore in the revenue requirement for 2007-08 as interest on working capital stated to be calculated on normative basis @ 18% on estimated annual sale revenue reduced by the amount of depreciation, deferred revenue expenditure & RoE.
2.35
Interest on consumer security deposit has been projected for the year 2007-08 to be Rs.36.81 crore.
2.36
The petitioner has claimed that a sum of Rs.11.50 crore has been included in the revenue requirement for 2007-08 in terms of WBERC (Terms & Conditions of Tariff) Regulation, 2007 for allowing a reserve for dealing with unforeseen exigencies and has been computed @ 0.25% of the value of gross fixed assets at the beginning of the year.
2.37
Singur Haripal Rural Electric Cooperative (SHRELCOP) erstwhile licensee under the Electricity Act, 2003 had been operating in Singur and Haripal in Hooghly district. The petitioner has claimed that due to
difference in the selling price of WBSEB to SHRELCOP and the power purchase price of SHRELCOP from West Bengal State Electricity Board in the respective tariff orders of the two utilities for the years 2003-04, 2004-05 and 2005-06 an amount of Rs.22.73 crore was realised less by erstwhile WBSEB. WBSEDCL has considered the aforesaid amount in
West Bengal Electricity Regulatory Commission 16
the revenue requirement under special appropriation head in the tariff petition of the petitioner for the year 2007-08.
2.38
The petitioner has claimed that WBSEDCL as the administrator of SHRELCOP has considered Rs.4.96 crore in the revenue requirement under special appropriation head as expenses of SHRELCOP in their tariff petition for the year 2007-08. It has also been claimed by the petitioner that the revenue income from the consumers of Singur Haripal area has been considered in the revenue income of WBSEDCL.
2.39
In the tariff petition WBSEDCL has drawn the attention of the Commission to Rs.372.98 crore withheld by the Commission from the revenue requirement of WBSEB in the tariff order of 2004-05 for non-submission of full documents, information, data etc. etc. On being satisfied that the WBSEB had started taking adequate steps to furnish the information, documents, data etc. etc. the Commission released Rs.124.33 crore i.e.,
1
/3rd of the with-held amount while passing the tariff order for 2006-07 in
respect of erstwhile WBSEB. In the tariff petition of 2007-08 the petitioner has claimed 1/ 5th of the balance with-held amount being Rs.49.73 crore in the revenue requirement under special appropriation head.
2.40
The petitioner has drawn the attention of the Commission to the amount of Rs.637.96 crore deducted from the revenue requirement from 2004-05 towards excess interest allowed in the earlier years on the basis of Govt. order dated 9.10.2002 reducing the interest rate to 2% w.e.f 2001-02. The petitioner has claimed that the aforesaid Govt. order dated 9.10.2002 was subsequently withdrawn restoring the rates at which the loans were
17
originally sanctioned.
Accordingly, Rs.637.96 crore deducted by the
Commission from the revenue requirement has now been claimed by the petitioner to be refundable to WBSEDCL. In order to avoid tariff shock 5% of the deducted amount i.e., Rs.31.85 crore has been claimed by the petitioner in the revenue requirement of 2007-08 under special appropriation head.
2.41
The petitioner has claimed Rs.391.48 crore in the revenue requirement as Return on Equity being 14% of average equity base of Rs.2796.31 crore for the year 2007-08 considered for ARR. The average equity base of Rs.2796.31 crore has been claimed to have been arrived at from the total equity of WBSEDCL amounting to Rs.1942 crore as per the balancesheet of WBSEB as on 31.03.2006 in terms of West Bengal Power Reforms Transfer Scheme, actual equity of Rs.428.97 added during the year 2006-07 and the equity of Rs.906.97 crore projected for the year 2007-08.
2.42
Considering all the aforesaid expenditures the petitioner has claimed in their tariff petition a total expenditure of Rs.6303.02 crore for the year 2007-08 to be recovered through tariff after due consideration to deduction for additional income and revenue expected during the year.
2.43
Non-tariff income comprising of meter & service line rentals, meter box charges, wheeling charges, reconnection & disconnection fees, delayed payment surcharge, interest, investment income and other misc. charges including fuse call charges, recoveries of theft of power etc. a total sum of Rs.168.05 crore has been projected by the petitioner for 2007-08. This
18
includes revised rentals of Rs.100.36 crore and Rs.15.99 crore from delayed payment surcharge projected to be collected during the year.
2.44
The petitioner has estimated that sale to CESC Ltd. during the year 200708 would be 900 MU which will include sufficient quantum of peak power largely sourced from Purulia Pump Storage Project. PPSP energy cost being higher, the petitioner has assumed a higher rate for sale of power to CESC Ltd. at a level of 270 p/kwh and the corresponding revenue for the year 2007-08 from sale to CESC Ltd. has been projected at Rs.243 crore.
2.45
The petitioner has estimated a sale of 45 MU of energy to DPSCL. The petitioner has stated that WBSEDCL is purchasing energy from DPSCL @ 330 p/kwh and has proposed to sell to DPSCL at Bankhola at the same rate and the corresponding revenue earning has been estimated at Rs.14.85 crore for 2007-08.
2.46
During the year WBSEDCL has proposed to earn a revenue of Rs.13.52 crore from sale of power to Govt. of Sikkim at the rate of 169 p/kwh.
2.47
The petitioner has proposed to pass on 90% of the benefits earned from the sale of 5075 MU of surplus energy to persons other than licensee or any other consumer. Out of total sale value of Rs.1766.1 crore for this energy @ 348 p/kwh the petitioner has computed such benefit for passing on to the consumer during the year 2007-08 to be Rs.760.68 crore, while the balance expenses attributable for such sale has been projected by the petitioner to be Rs.920.90 crore during the year.
19
2.48
Showing the total calculated expenditure of Rs.6303.02 crore and considering aforesaid deductions due to revenue earned from other income, bulk supply & supply to Sikkim, taking into account the benefits passed on to the consumers and expenses attributable to export, AR required for sale of energy to its own consumers has been projected by the petitioner to be Rs.4182.02 crore for the year 2007-08.
2.49
With projected revenue requirement of Rs.4182.02 crore expected by the petitioner from sale of 12896 MU of energy to its consumers the average cost of supply per unit has been computed by the petitioner to be 324.29 p/kwh.
2.50
Higher cost of supply than the average cost which was allowed by the Commission for the previous year (2006-07) is stated by the petitioner to be due to the additional expenditure of Rs.77.16 crore to meet the requirement of its own consumers for the year 2007-08.
20
CHAPTER - 3 OBJECTIONS AND SUGGESTIONS

Objections against the Tariff Petition of West Bengal State Electricity Distribution Company Ltd (2007-2008)
3.1
As per the direction of the Commission, West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) published a gist of the tariff petition filed by the said company calling upon all interested parties and members of the public to file objections or make comments on the petition. The gist of petition was published simultaneously in Ananda Bazar Patrika, The Telegraph, Sanmarg, Business Standard, Aajkal and Bartaman. The intending objectors to the gist of the tariff petition were also afforded opportunities for inspection of the petition and take copies of the same in terms of the relevant provisions of WBERC (Conduct of Business) Regulations, 2007. In response to the notifications, the Commission received written objections to and comments on the tariff petition of WBSEDCL from the following objectors within the stipulated period. 1. 2. 3. Micro & Small Scale Enterprises & Textiles Department, Govt. of W.B. Singur-Haripal Rural Electric Co-operative Society Ltd. Akbar Ali Mandal of Bohalipota & 306 similar objections submitted by ABECA, North 24 Parganas. 4. 5. 6. 7. 8. Sree Nripendra Nath Chakraborty & 34 others. CESC Ltd. Reliance Communication. Indian Tea Association & 6 others. Hotel and Restaurant Association of Eastern India.
21
9. 10. 11.
Tapan Kumar Maji Eastern Railway. Chinmoy Saha & 1537 others submitted by ABECA, 27A Dhiren Dhar Sarani.
12. 13. 14. 15. 16. 17. 18. 19.
Jaya Shree Textiles, A unit of Aditya Birla Nuva Limited. Eastern India Textiles Mills Association. All Bengal Electricity Consumers Association. West Bengal Cold Storage Association. Hooghly Chamber of Commerce. Sri Vasavi Industries. South Eastern Railway. Dhanapati Basak & 178 others submitted by ABECA, 27A Dhiren Dhar Sarani, Kolkata-12.
20.
Bharat Chamber of Commerce.
3.2
The Principal Secretary, Micro & Small Scale Enterprises & Textiles Department, Govt. of W.B., has pointed out that the consumer category of Cottage industry artisan / weavers / small production oriented establishment not run by electricity as motive power as mentioned in the Annexure C-1 of the WBERC (Terms & Conditions of Tariff) Regulation, 2007 does not appear in the petition filed by WBSEDCL. The objector has further appealed to provide the tariff for the above category of consumers who are handloom weavers having upto 4 looms in their houses in place of existing provision of handloom weavers having 2 looms in their houses and artisans not using electricity for their production purpose and not displaying any hoarding.
22
3.3
Singur-Haripal Rural Electric Co-operative Society Ltd. has appealed for a modified projected amount of Rs.265 lakhs against employees cost and Rs.36 lakhs as interest charges for 2007-08, thus, increasing the requirement on these sub-heads of the Co-operative Society submitted in the tariff petition by WBSEDCL as the administrator of SHRELCOP. The objector has also submitted a proposal for capital investment of Rs.8.50 crore for improvement of the existing power supply system, converting un-metered supply into metered supply, installation of 11 KV capacitors for the feeders, for infrastructural development and towards the expenditure for survey and mapping of the assets of the Cooperative Society. The Co-operative Society has tried to justify the above capital investment because of the stated reason that there was no scope for these activities since 1.1.2006.
3.4
Printed objections with same contents signed by 2023 numbers of individual objectors have been forwarded by ABECA from various parts of the State in 3 separate lots. Exactly similar printed objections with same contents have been received from Shri Nripendra Nath Chakraborty & 34 other individuals while one individual consumer, Sri Tapan Kumar Maji has sent the same printed objection directly to the Commission with only difference that the typing error of point no.11 of other similar applications forwarded by ABECA has not been corrected by aforesaid Sri Maji, Sri Chakraborty & 34 others. The objectors have made
certain general remarks against the tariff proposal of WBSEDCL. The objectors have appealed not to allow recovery of withheld amount of Rs.31.06 crore stated to be due to difference in rate of interest, Rs.49.73 crore stated to be due to nonsubmission of full information during the period from 2003 to 2005 and also the amount of Rs.4.96 crore for supply to Singur-Haripal Rural Electric Co-operative Society Ltd. They have further demanded punishment to the licensee for their lapses on these accounts. The objectors have in general blamed the policy of
elimination of cross-subsidy which in the opinion of the objectors have caused higher tariff for small domestic and commercial consumers, public lighting etc. and have raised the fixed charge for small industries. These objectors have also expressed that un-metered supply to the agricultural consumers should be continued. They have at the same time demanded that the annual payable
charges by the consumers for the un-metered supply should be reduced both for shallow tube-wells and submersible pumps. The objectors have further
demanded that the metered supply to the agricultural consumers should be made @ 50 paise / unit. The objectors have opined that T&D loss of WBSEDCL should not be allowed above 18%. They have demanded that the consumers with
consumption of 30 units / month should be allowed a tariff at a rate of 50%. These objectors have also demanded that the right of purchasing the meter by the consumers should be implemented and for the industrial consumers the meter rent should be reduced from Rs.100/- per month to Rs.45/- per month. The objectors have also appealed for abolition of fixed charge for small industry and have expressed their to desire examine the account of the money collected by the licensee as penalty stated to be against false charges of theft of electricity. These objectors have also demanded implementation of the policy of Open Access immediately.
3.5
CESC Ltd. In their objection to WBSEDCLs tariff petition has pointed out that 57% of CESCs consumers consume belong to a consumption level of 49 units per month and any rise in the tariff chargeable by WBSEDCL to CESC Ltd. will have adverse impact on these small consumers. CESC Ltd. has appealed not to increase the tariff of WBSEDCL for supply to CESC Ltd. above the existing 250 paise / unit as fixed by the Commission for the year 2006-07.
24
3.6
Reliance Communication has appealed for conversion from commercial to industrial category for the IT & ITEs being provided by them to meet the State Governments requirement of e-governance and for Panchayet and
Municipalities. The objectors have also objected against the proposed rise in energy charge under A(Cm-R) and A(cm-U) which are presently being applied for these consumers..
3.7
Indian Tea Association along with several other Planters associations have raised objection against the charging of Demand Charges throughout the year for Tea Industry which they opine to be seasonal industry and have demanded appropriate facility to declare contract demand separately for the production season and off season. The objectors have raised objection against separate supply point for electricity supply for irrigation and factory in the tea gardens and charging of demand charges separately. The objectors have also appealed for determination of exact cost of supply at different voltages and determination of relevant quantum of cross-subsidy imposed with clear indication of reduction of cross-subsidy. The Associations have appealed to consider appropriate cost of capital in use only on the basis of audited accounts taking into account only the assets in use after the date of commissioning of the assets and to arrive at the ROE accordingly. The objectors have also demanded that the period of
interruption be provided by the licensee furnishing the MRI records along with the bills. The objectors have appealed that the reduced T&D loss and ATC loss should be considered upholding the claimed gradual improvement of the performance of WBSEDCL. The objectors have requested to consider the
income of WBSEDCL in earlier years against the supply to those other than licensees or own consumers and also from the income arising out of net UI charges.
25
3.8
Hotel and Restaurant Association of Eastern India in their objection have mentioned that the Govt. of W.B declared in the year 2000 that the hotels were industries. The objector on the basis of this have appealed that the industrial rates be made applicable for the electricity consumed by the hotels in carrying out their business in place of the commercial rate which is presently being applied for such consumption causing financial difficulties to the investors in the hospitality industry.
3.9
Eastern Railway in their objections have stressed on the need for a reasonable railway traction tariff and have objected to the proposed increase in the maximum demand charge and have appealed for reduction in existing demand charges of Rs.180 / KVA / month. Pointing out that in the tariff petition a reduction in
industrial energy charge has been proposed while the charges for traction energy has been proposed to be enhanced, eastern railway have appealed for reduction in per unit energy charges for the Railways. The objectors have also pointed out that the rebate on energy charge for industrial consumers @ 4% & 8% in respect of 33 KV and 132 KV level was ordered by the Commission for earlier years but no such rebate was extended for 25 KV & 132 KV railway traction. The objectors have requested to consider issuance of voltage rebate at the same rate as would be applicable for HT / EHT industrial tariff. Eastern Railway have appealed for withdrawal of any extra charge for excess drawal of energy for the reason that the railway traction load is fluctuating in nature due to factors like public agitation, accident, equipment failure, diversion of train due to natural calamity and traction power interruption all of which are beyond the control of railway authorities. Eastern Railway have proposed for levying extra charges on total excess demand vis--vis total contract demand for all their TSS / GSS getting supply
from WBSEDCL. For the same reason the eastern railway have proposed that punitive clause for load factor surcharge for railways should be implemented for the load factor of 25% and below instead of 55% as proposed. Eastern Railway have also proposed to keep the provision of power factor rebate clause for power factor above 0.85% in railway traction instead of from above 0.9% as proposed. Eastern Railway in their objections have drawn the attention of the Commission to their reasoning for adopting simultaneous maximum demand for traction substation in line with tariff order passed by some other State Electricity Regulatory Commission. To justify this Eastern Railway have given the reason that the loads on traction being moving load drawing power from one traction substation to other in accordance with the time schedule, some times exceed contract demand of one substation whereas drawing much less than the contract demand of the immediate previous substation. According to Eastern Railway charging for maximum demand for individual supply point as per the present system is not judicious and have appealed for adoption of recording of simultaneous maximum demand for traction substations. Eastern Railway have pointed out that WBSEB, the earlier licensee was realising service connection charges from the railway for augmentation of their transformer capacity to cater the growth of electric traction. Eastern Railway have prayed that WBSEDCL should not ask for any payment like service connection charges for augmentation of transformer capacity in their substation. Eastern Railway have also prayed for introducing some disincentive for WBSEDCL for not providing quality power supply to Railways. They have at the same time proposed that the Railways may be given some rebate in tariff on this account.
3.10
Jaya Shree Textiles besides raising objections against the proposed tariff of WBSEDCL applicable to them have raised some issues stated to be confronting the industrial consumers in general. They have appealed for lower cost of power
27
during off-peak hours from the proposed level of 69% of normal rate.
The
objectors have appealed for the rate of off-peak period at a level of 50% of normal energy charge. The objector have pointed out that WBSEDCL has
proposed higher incentive for load factor from 60% to 80% but no increase has been proposed in the load factor rebate for load factor from 80% and above. The objector have proposed that rebate for load factor of 85% and above be given at a rate of 60 paise / kwh. Similarly, in the case of power factor also they have proposed a higher rebate from and above power factor of 0.94. Linking the T&D loss and rebate on energy charge proposed by the licensee, the objectors have appealed for a total rebate of 20.7% instead of 8% on energy charges for 132 KV consumers. Raising the question of cost of supply at the respective voltage levels of the consumers the objector have proposed that the tariff should be fixed by taking T&D loss of 4% in 132 KV system.
3.11
Eastern India Textiles Mills Association and Hooghly Chamber of Commerce have submitted similar objections in line with the objections of Jaya Shree Textiles. These two objectors have in addition also prayed for rebate on energy charge at the level of 17.2% and 4.9% in the case of 33 KV & 11 KV consumers respectively.
3.12
All Bengal Electricity Consumers Association (ABECA), 27A, Dhiren Dhar Sarani, Kolkata-12, in their objection in the tariff proposal of WBSEDCL have submitted the following points:(i) The Association has alleged that WBSEDCL has failed to follow the regulations to provide better consumer services and to safeguard the interest of the consumers. WBSEDCL in the petition has not mentioned
28
anything regarding the payment of compensation to the consumers for load-shedding and low voltage etc. The Association has suggested
imposition of penalty on WBSEDCL instead of allowing fresh hike in their tariff 2007-08. (ii) The Association has further argued that the erstwhile WBSEB had earned profit amounting to Rs.300 crore last year and therefore, no tariff hike should be allowed this year. (iii) According to the objectors T&D loss claimed by WBSEDCL at the level of 20.34% is unreasonably high and should be allowed at the level of 18% only. (iv) The objectors have objected to the provision of Rs.11.50 crore as unforeseen exigency and have suggested that this amount should not be taken into consideration while calculating the revenue requirement of the company. They have further proposed that if any such reserve is
required, it should be built up from the return earned by the licensee. (v) The Association has appealed that the prayer of the petitioner to consider the rise in price index resulting in increased cost of business be disallowed. (vi) The objectors have also raised the objection against recovery of Rs.4.96 crore in the revenue requirement under special appropriation head as expense of SHRELCOP. The objectors have further objected to inclusion of Rs.22.73 crore arising due to difference in the selling price of WBSEB to SHRELCOP and power purchase of SHRELCOP from WBSEB in the tariff orders of 2003-04, 2004-05 and 2005-06.
29
(vii)
ABECA has objected to the inclusion of Rs.49.73 crore being 1/5th of the withheld amount of Rs.372.98 crore in the tariff order for the years 200203, 2003-04 and 2004-05. The objectors have suggested penalty to
WBSEDCL for the default of WBSEB in submission of appropriate documents, information etc. for which the amount was originally withheld. (viii) The objectors have also objected to the claim of WBSEDCL of Rs.31.85 crore being 5% of Rs.630.96 crore which was deducted from the revenue requirement of WBSEB towards excess interest allowed in the earlier years stating that once reducing the rate of interest in one Govt. order and after a long time withdrawing by another such order should not be considered for tariff fixation as it goes against the interest of the consumers. WBSEB in such case should take up the issue with the Govt. instead of claiming the amount. (ix) Refuting the figure for total equity as provided in the transfer scheme the objectors have suggested that the equity fund of WBSEB as allowed for the year 2006-07 should be retained at the level of Rs.1352.62 crore for 2007-08 also. After the bifurcation of WBSEB into two companies equity base of WBSEDCL should, according to the objectors, be considered as of Rs.1352.62 crore i.e., Rs.676.31 crore and the return also be calculated accordingly. (x) The objectors have mentioned that the quantum of power purchase allowed by the Commission for the year 2006-07 was higher than the actual power purchase made by WBSEB in the year 2006-07. They have suggested that the excess amount stated to have been allowed by the Commission may be deducted from the power purchase cost for 2007-08. (xi) The objectors have raised objections against the stated excess cost for purchase of power from WBREDA and have expressed their desire to
know whether the purchase rate has been enhanced by the Commission as also the reasons for reduction of power purchase from this source.
(xii)
The Association has questioned the lower purchase of 622 MU only from DVC in radial mode instead of 815 MU stated to have been allowed by the Commission in 2006-07. They have also raised the question as to why 690 MU of energy purchase from DVC has been proposed in 200708. The objectors also want to know whether the proposed peak
purchase of 62 MU from DVC in 2007-08 is included in the purchase proposal of 690 MU. (xiii) The objectors have objected to higher ERLDC charge in 2007-08 in comparison to that allowed for WBSEB in 2006-07. (xiv) It has appeared to the objectors that WBSEB has drawn 2512.53 MU less energy during 2006-07 in comparison to that allowed by the Commission for power purchase. So, the Association has proposed that the cost of 23% of 2512.53 MU energy being Rs.184.38 crore be deducted from the revenue requirement of WBSEDCL for 2007-08 for excess T&D loss. The objectors have further reasoned that in the tariff proposal of 2007-08 excess power purchase of 1093 MU has been claimed in comparison to that allowed for 2006-07. Corresponding cost allowed for T&D loss at 24% of 1093 MU @ Rs.3.24 per unit should, according to the objectors, be deducted from the proposed expenditure of Rs.6303.02 crore. (xv) The objectors have opined that the projected higher power purchase cost is due to low PLF in hydro stations of WBSEDCL. The Association has suggested not to allow PLF below 75% in the hydel projects. On this
31
account the objectors have opposed the excess power purchase cost for 2007-08. (xvi) ABECA has expressed doubt about the proposed staff strength of WBSEDCL and the projected employees cost thereof.
(xvii)
The Association has further objected on proposed R&M expenses for generation in the tariff proposal of WBSEDCL and has suggested to deduct Rs.22.06 crore, which they claim, is excess R&M charge. The objectors have observed that R&M cost for generation should follow the PLF pattern of hydro generation. The objectors have proposed not to allow more than Rs.65.62 crore for total R&M cost in 2007-08.
(xviii) Regarding administration and general expenses, the objectors have made their own calculation to show that Rs.17.23 crore is required to be deducted from the total administration & general expenditure projected by WBSEDCL. (xix) Regarding bad debts, the objectors have opined that the bad debts in the audited figure of 2005-06 is Rs.4.30 crore but the Commission in the tariff order of 2006-07 had allowed bad debts at Rs.19.35 crore, thus, allowing Rs.15.05 crore more for realization in 2006-07 which should now be deducted in the tariff order of 2007-08. Further, according to the
objectors, for Rs.4.30 crore bad debts proposed in 2007-08 no reason has been shown by WBSEDCL. (xx) The objectors have observed that WBSEDCL has claimed Rs.217.61 crore as depreciation charge for 2007-08, whereas in 2006-07 out of a total depreciation of Rs.211.17 crore allowed to WBSEB, Rs.68.35 crore
32
was towards transmission assets.
For 2007-08, according to the
objectors WBSEDCL should not be allowed to recover depreciation charge of Rs.142.82 (Rs.211.17 Rs.68.35) crore. The objectors have also proposed that depreciation of WBSEB allowed on other assets in 2006-07 should be halved for taking into account the depreciation charges for distribution licensee. ABECA has proposed that not more than Rs.138.26 should therefore be allowed as depreciation charges to WBSEDCL for 2007-08. (xxi) The objectors have also objected to Rs.70.60 crore of interest on working capital claimed by WBSEDCL and have proposed that the full amount should be deducted from total expenditure. (xxii) ABECA expressed its opinion that total sale proceeds on export of 5075 MU of energy outside the region should have been mentioned in the tariff petition of WBSEDCL along with the figure of 90% of earnings that might be given to the consumers. The objectors have also demanded that this information should be given by the licensee to the Commission in writing as well as in open hearing. (xxiii) The Association has further contended that according to its calculation average cost of supply cannot be more than Rs.2/- per unit in place of claimed rate of Rs.3.24 per unit. (xxiv) Making their own analysis of figures for net generation, purchased energy, sale to own consumers, export, supply to CESC and DPSCL, T&D loss etc. the objectors have drawn the inference that the results do not show efficiency in performance or any safeguarding of consumers interest. The objectors have also concluded that excess purchase has been projected by WBSEDCL for 2007-08. The objectors have
demanded rejection of proposal for excess purchase and have suggested

increased generation from own sources of the licensee. The objectors have further drawn their conclusion that since export of power projection according to their analysis is more than that of excess of own consumers consumption projection in 2007-08, the power purchase quantum and cost are more in 2007-08 and amounts to uneconomical use of resources and bad performance. (xxv) According to the calculation of the objectors power purchase cost in 2007-08 is lower than that in 2006-07 but the projected average cost shows an increase of 5 paise / unit. This, according to the objectors, shows that all other cost per unit has increased by 3 paise / unit which has been stated by the objectors to be unjustified and has been opposed by the objectors. (xxvi) On the basis of their analysis the objectors have determined that Rs.1518.09 crore is required to be deducted from total projected expenditure of Rs.6303.02 crore. Further, an amount of Rs.2121 crore is to be deducted as proposed by WBSEDCL for other income, revenue from bulk supply and supply to Sikkim, benefits passed on to the consumers and expenses attributable for sale to persons other than licensee or consumer. The objectors have deduced from above that the revenue requirement of WBSEDCL for 2007-08 should be Rs.2663.93 crore and on the basis of saleable energy of 12896 MU, the average cost according to the objectors comes to not more than Rs.2.06 per unit. (xxvii) ABECA has further argued that in 2006-07 average cost of supply of WBSEB was 319 paise/unit which the licensee has proposed to be raised to 324 paise/unit for 2007-08. According to the objectors argument, WBSEDCL, in that case, cannot supply power to CESC @ 217 paise/unit, DPSCL @ 255 paise/unit and Sikkim @ 169 paise/unit imposing extra
monetary burden on its own consumers.
These agencies should,
according to the objectors, be allowed to purchase directly from WBPDCL passing on its benefit to the consumers of WBSEDCL. The objectors have also raised objection on purchase of power from DPSCL @ 330 paise/unit and sale of power @ 255 paise/unit. (xxviii) The objectors have suggested category-wise tariff structure of WBSEDCL on the basis of ABECAs own calculation of average cost @ 206 paise/unit. The objectors have also suggested their own rates for
realisation of energy charges from the consumers with un-metered supply. They have suggested new rate for realisation of fixed charge from selected consumers. For supply to CESC, TOD rates of 204
paise/unit, 208 paise/unit and 196 paise/unit have been suggested by the objectors for normal period, peak period and off-peak period respectively. (xxix) The objectors have presented their argument against Purulia Pumped Storage Project wherefrom WBSEDCL proposes to procure 850 MU of energy in 2007-08 by purchasing 1130 MU of energy for use in pumping mode. Calling such mode of power procurement uneconomical, the
objectors have pleaded for disallowance of Rs.52.64 crore of excess power purchase on this account. (xxx) The objectors have also argued that the average rate of power purchase being Rs.1.88 per unit the selling of power to Sikkim @ Rs.1.69 per unit will cause a loss of Rs.1.52 crore for 80 MU of energy and this should be disallowed. (xxxi) The objectors have opined that sale of power to CESC and DPSCL at rates below the proposed average cost of 324 paise/unit in 2007-08 will cause a loss of Rs.48.60 crore and Rs.3.10 crore which will become a burden on consumers of WBSEDCL and should not therefore be allowed.
(xxxii) ABECA strongly objected to the proposed additional rebate of 5 paise/unit for EHV consumers arguing that this will raise the burden on L & MV consumers. (xxxiii) ABECA has argued against increase in load factor rebate and power factor surcharge. Increase in load factor rebate from 4 paise to 45 paise, according to the objectors, will benefit only big industrial consumers to the disadvantage of small L & MV consumers who will have to according to the objectors bear the burden. Proposed increase of power factor
surcharge by 20% for consumers having power factor below 0.85 has been opposed by the objectors for being unjustified. Instead, the
objectors have suggested to penalise WBSEDCL for low PLF in its generating stations. (xxxiv) The objectors have suggested a rate of 50 paise / unit for supply of electricity to those agricultural consumers who are supplied through meters. (xxxv) Calling the proposal of increase of tariff for public light, LT public utility service and public water works as anti-people, the objectors have suggested increase of rates for HT industrial and HV & EHV consumers and have advocated for withdrawal of fixed charges for LT consumers. Opposing the proposal to enhance meter rent by rupee 1/- for LT domestic consumers the objectors have proposed to allow the purchase of meters by consumers. The new proposal of WBSEDCL for tariff for 400 KV supply has also been objected by ABECA.
36
3.13
West Bengal Cold Storage Association has, in their submission against the tariff proposal of WBSEDCL, described the tariff proposal as a shock surge for remotely situated HV Cold Storage consumers and has called it discriminatory in comparison to industrial consumers. The Association has argued that in view of recent upward revision in the scale of electricity charges, geographical position of Cold Storage set up and the purpose of use of energy the circumstances do not uphold any further hike in tariff at this stage. The objectors have raised objections against the proposal of raising the energy charge for Cold Storage consumers by 22 paise / unit and the proposal to raise the demand charge by Rs.20/- per KVA/month. The objectors have further raised objections against inclusion of the receivable amount of outstanding dues of erstwhile WBSEB from SHRELCOP in the cost statement for 2007-08, thus, passing on the financial burden of SHRELCOP to the consumers of WBSEDCL. By means of graph etc. the Association has, in its, submission pointed out that the effective cost of electricity including demand charge for a 200 KVA Cold Storage plant at a loading of 93263 quintals increases sharply and reaches as high as Rs.25/- per unit during the months from December to March although the average cost of supply of WBSEDCL has been proposed to be Rs.3.24/unit in 2007-08. Furnishing operating features of Cold Storages during the stated
loading, holding, unloading and lean periods the Association has presented the case of Cold Storage consumers with the help of graphs showing the profile of consumption and demand during the various months of the year. Calling the Cold Storages as seasonal establishments the objectors have described them as pre-dominantly rural set up playing an important role in serving the interest of poor and marginal farmers. In view of the stated seasonal character the
Association has prayed for Actual Power Drawal Based Demand Charge instead of existing charges based on 75% of contract demand for Cold Storages.
37
The objectors have raised objections against the claim of 24.7% T&D loss made in the tariff petition of WBSEDCL mentioning that the T&D loss of 25% fixed by the Commission for 2004-05 should serve as a bench mark with gradual reduction each year reflecting progressive improvement in the performance of the licensee in accordance with the statute. The objectors have also expressed their opinion against the speed of implementation of totally metered supply calling it sluggish and have particularly mentioned about continuance of unmetered supply to rural agricultural consumers. Praying for extension of the benefit of higher load factor rebate for HV Cold Storage consumers the Association has pointed out that so far efficient utilisation of energy is concerned, a positive role for Cold Storage consumers is equally pertinent as their industrial counterpart. The objectors have appealed for
downward revision in meter rent as the cost of static energy meter has come down appreciably. The Association has further pointed out that the rent for Cold Storages for agricultural produces like potato is fixed by the State Govt. in February each year and any mid term rise in tariff in electricity cannot be recovered by the Cold Storage owners from the actual users. 3.14 In their submission M/s. Sri Vasavi Industries Limited (SVIL) have mentioned that in the notification of Govt. of W.B. assets of WBSEB which stand transferred to WBSEDCL do not include the 132 KV line through which supply from grid substation is received by SVIL which according to the objectors signify that SVIL does not use distribution network of WBSEDCL. Hence, such cost of distribution system according to the objectors which includes 33 KV system and below should not have any impact on the cost of supply to SVIL. The objectors have raised objection on the equity base claimed by WBSEDCL. According to the objectors, the capital cost of assets in use after their date of
commissioning should only be considered for the purpose of determination of tariff whereas WBSEDCL has included the cost of assets which are in progress in 2007-08 and has arrived at the capital cost to determine the equity base. The objectors have further objected to the use of un-audited figures by WBSEDCL for 2006-07 in order to calculate the proposed tariff for 2007-08. The objectors have appealed to consider only Rs.1942 crore as equity of WBSEDCL for the year 2007-08 under the total capital cost of assets in use instead of proposed Rs.2796.31 crore. The objectors have appealed to calculate the return @ 14% on Rs.1942 crore accordingly and not beyond that. Objecting to the claim of WBSEDCL that the licensee has attempted to reduce cross-subsidy of various classes of consumers, the objectors have prayed that the cost of supply to consumers at different voltages be determined first and then the amount of cross-subsidy be calculated. This method according to the
objectors will help in coming to the conclusion about reduction in cross-subsidy. The objectors have further demanded that the cost of supply at 132 KV line for SVIL be indicated in the tariff order. The objectors have raised objection against the high T&D loss projected by WBSEDCL for 2007-08. The objectors opined that T&D loss of 24.7% as per Restructuring Plan notified by the State Govt. should not be considered for calculation of tariff for 2007-08. According to the objectors the notification is neither a policy involving public interest nor a direction to the Commission. The objectors have appealed for an appropriate T&D loss for 2007-08 after lowering it from 23% allowed by the Commission for 2006-07. M/s. SVIL have appealed for taking into consideration the stated additional income from trading and U.I charges earned by the licensee over the envisaged amount in the tariff formulations of past years and also to take into consideration stated extra gain made by the licensee in terms of alleged extra sale / sale at higher rate during the past years. M/s. SVIL prayed for direction to the licensee for purchase of
cheaper power on Merit Order basis for sale to its consumers in order to protect their interest. The objectors have also appealed to the Commission not to
consider any increase in demand charge in the year 2007-08. M/s. SVIL have appealed for an opportunity of hearing to their objections so that all issues may be clarified.
3.15
The objections submitted by South Eastern Railway have been carefully examined and it is noted that the objections of South Eastern Railway and those of Eastern Railways are almost similar in nature. The objections of Eastern Railway have been considered under para 3.9 above and there being no substantive difference between the objections submitted by South Eastern Railway, the objections submitted by South Eastern Railway are not being repeated here.
3.16
Bharat Chamber of Commerce (BCC) in their submissions have objected to the revenue requirement of WBSEDCL in their tariff proposal for 2007-08 and has expressed that the expenses under different heads have been shown excessively to cover up the inefficiency of the licensee. BCC has appealed to the Commission not to consider such abnormal rise of tariff because of their observations / recommendations on the following points:(i) 11% rise in demand charge stated to have been proposed by WBSEDCL is, in accordance with the objectors, a huge increase and off sets the proposed tariff reduction of Rs.0.05 paise / unit for 11 KV industrial supply and Rs.0.02 paise / unit for 33 KV industrial supply. The objectors have further appealed that the Maximum Demand be recorded between 6 A.M
40
and 10 P.M in line with practices followed in the year 2002-03, 2003-04 and 2004-05 instead of on a 24-hour basis as is being followed from 2005-06. The objectors have argued that the proposed consideration of Maximum Demand attained during off-peak hours will discourage higher drawal during this period and as a result the very purpose of flattening the load curve may be defeated. (ii) BCC has also prayed for preventing the charging of additional energy charge as proposed by WBSEDCL, arguing that the proposal is counter productive and will harm the interest of the genuine consumers who opt for right contract demand. The objectors have also proposed that
additional charges payable for exceeding CD / energy drawal should be indicated in plain and simple English as in earlier years instead of introducing complex formula which cannot be easily understood by the ordinary consumers. (iii) BCC have suggested for squaring up the cross-subsidy from the electricity duty collected. (iv) According to the objectors the proposed return on equity is very high. A permitted return @ 14% (Rs.391.48 crore) has been proposed along with a provision of Rs.217.61 crore to revenue requirement as depreciation expenses. According to the objectors this has resulted in a total return on equity of 22.3%. The objectors have appealed to the Commission to ask the petitioner to detail out the basis of 22.3% return for review and consideration. (v) BCC has objected to high T&D loss proposed by WBSEDCL in their tariff petition and has appealed to the Commission to segregate the percentage of technical and administrative loss after computing the
41
feeder-wise energy loss. The objectors have also prayed for gradually restricting the aggregated technical loss to 15%. (vi) The objectors have objected to the provision of 10 MU of auxiliary consumption proposed by WBSEDCL for the year 2007-08 being very high compared to auxiliary consumption actually required for the earlier years. They have appealed to restrict the auxiliary consumption within 2% maximum stated to be according to the guidelines of CEA. 6 MU auxiliary consumption in Purulia Pump Storage Project has also been objected to by the BCC who has appealed for critically examining the auxiliary consumption versus generation in PPSP. (vii) The objectors have objected to graded load factor rebate as proposed in the tariff petition of WBSEDCL. The objectors have suggested that at best there may be two slabs of load factor one upto 70% and the other above 70%. They have also appealed for average load factor for tariff fixation at 35%. (viii) The objectors have objected to the PLF in the hydro plant of WBSEDCL which has been stated to be low arguing that if there is water availability there is no reason why PLF should be so low and have suggested routine maintenance to be carried out in phased and planned manner. The
objectors have suggested calculation of tariff on the basis of 65% PLF. They have also suggested the Plant Availability Factor to be maintained at 75%. (ix) BCC has questioned the validity of the government order revising the rate of interest retrospectively and has requested the Commission to appeal to the State Govt. to restore their earlier order so that the deducted amount of Rs.637.96 crore is not progressively recovered by WBSEDCL through higher tariff burdening the consumers.
(x)
The objectors have appealed to the Commission for not authorizing WBSEDCL to include Rs.27.69 crore against SHRELCOP since the tariff of erstwhile WBSEB for 2003-04, 2004-05 and 2005-06 have already been fixed by the Commission in consideration of the proposed facts.
(xi)
The objectors have objected to higher purchase from external sources while operating their own plants at low PLF and PAF.
(xii)
Observing that the majority WBSEDCL debtors are government offices and its own substations, BCC has appealed that the Commission may direct WBSEDCL to realize the outstanding dues from the government officials by appropriate deduction from their salaries and by proportionate cut of central allocation to the government organization.
(xiii)
The objectors have suggested that the draft of the tariff prepared by WBERC should be put on internet and WBERC should invite suggestions on the same by Consumer Organization, Trade & Industry Association and Chambers of Commerce before finalizing the tariff. They have also suggested to set up a Right to Information Cell by the licensee manned by proper and customer friendly officers.
(xiv)
BCC has also appealed that the charging of connection charges and security deposit by the licensee should be made more transparent to show that the reasonably incurred expenses have only been charged.
(xv)
BCC has further suggested that all projected figures in the tariff petition should be compared with the figures actually achieved and if the expenditure has been less than the projected figures then the subsequent years revenue requirement should be reduced suitably.
43
(xvi)
Observing that there has been an average increase in overall tariff for the TOD consumer particularly for 11 KV and 33 KV industrial consumers, the objectors have appealed that peak and off-peak rates should be so adjusted that the average tariff normal, peak and off-peak demand is ultimately beneficial to the consumers.
(xvii)
The objectors have objected to sale of power to Sikkim and outside the region by the licensee at a cheaper rate and importing of power stated to be at very high rate. The objectors have further proposed that the fund recovered through Security Deposit and the fund recovered by the Loss Prevention Wing of the licensee in one year should be reduced from the total sum proposed to be attributed to T&D loss in the next year.
3.17
The Commission has carefully noted the objections, suggestions and comments which the objectors have submitted to the Commission in response to the publication of the gist of the tariff petition of WBSEDCL for the year 2007-08 in different newspapers and has considered the relevant points raised by the objectors pertaining to the said tariff petition while presenting the analysis and recording its conclusion on various components of the instant tariff proposal. different chapters of this order that follow. These are incorporated in
3.18
There however are a few more objections which have not found any specific mention in the analyses in the chapters that follow. While some of them are not quite relevant, clarifications in respect of some, in the opinion of the Commission, will be in order.
44
3.18.1
Some of the objectors have made a few general remarks about the tariff proposal of WBSEDCL and have proposed lower average cost of supply, while some have proposed a specific rate(s) at which a certain group of consumers as per their proposal should be given supply. In the absence of any reasoning or logic given by the objectors for such opinion, the Commission did not take a view on these objections. In another variation of such a proposal, an objector has suggested deductions / disallowances on several counts from the claims made in the tariff petition and has thereby arrived at a lower average cost of supply to the consumers. The proposed deductions / disallowances, not having been supported by facts and figures and further not having followed the methods laid down by the concerned Regulations, could not be considered by the Commission.
3.18.2
Some objectors have raised the question of performance standard of the licensee and quality of power supply and want to penalize the licensee through lower tariff. In regard to such objections on standard of performance of the licensee, the Commission clarifies that such matters are to be dealt under WBERCs Regulation No. 24/WBERC dated 18.10.2005 (Standard of Performance of Distribution Licensees Relating to Consumer Services) and not under WBERCs Regulation No. 31/WBERC dated 09.02.2007 (Terms and Conditions of Tariff), 2007.
3.18.3
Some of the objectors have blamed the policy of elimination of cross subsidy which in their opinion have caused higher tariff for small, domestic commercial consumers. This view is simply not correct. A
45
number of groups of consumers, specially those belonging to the LT categories, i.e , who in general are small consumers still continue to enjoy cross subsidies.
3.18.4
Some of the objectors have demanded that un-metered supply to agricultural consumers be continued. The Commission does not find any rationale behind such a demand which is particularly violative of section 55 of the Act. Some category of consumers have on the other hand demanded quicker implementation of the fully metered supply. The
demand for continuation of un-metered supply is simply not justified and the Commission has already fixed a date, being 31.03.2008, beyond which no supply which is unmetered should be given. 3.18.5. Some of these consumers have also proposed immediate implementation of the policy of Open Access. The Commission has already specified regulations on Open Access and its phased implementation in terms of provision of the Act. Some applications for Open Access have already been admitted and appropriate orders have been issued by the Commission for implementation of specific proposals of Open Access. But the Regulations in this behalf do not now call for any application to the Commission for availability of open access should be automatically decided upon in terms of those Regulations within definite time periods.
3.18.6
Another general objection which has been raised involves change in category of certain types of consumers. Categorization of various service providers under industrial category is an issue regarding which the Commission takes a view considering the consumption characteristic of
46
consumer, nature of load and its impact on power factor, voltage, loss etc. for the electricity consumed by the consumer for production / manufacture of a tangible commodity.
3.18.7
Appealing for a reduction in energy charge, some objectors who are also consumers of traction power, have argued for a rebate on energy charge in line with industrial consumers, and have additionally raised objections against levying demand charge for individual point of supply and have appealed for such demand charge to be fixed on the basis of Simultaneous Maximum Demand. But the point remains that the
characteristics of the load of traction is different from that of industrial consumers and deserve to be treated distinctively. The onus of the utility to keep its plants & installation ready for providing instantaneous service to a consumer lies separately on each individual supply point for the respective contract demand. An opposition to demand charge has come also from some other objectors who represent industrial consumers. The same consideration applies to them too. Through the mechanism of demand charge, the consumer creates for himself a right vis--vis the supplier to obtain the supply, and also simultaneously helps the supplier to meet a part of the latters fixed cost. This mechanism helps both the supplier and the consumer and there does not appear to be any reason for abolishing the same particularly when the concept is being applied to the process of tariff determination over a long time in the past. Also, there does not appear to be any rationale for charging demand charge only once for a consumer even though the latter may have a large number of supply points that have often different geographical locations, or different purposes of consumption or even different voltages.
47
3.18.8
Some consumers like Cold Storages, Tea Gardens etc. have raised objections against uniform demand charge throughout the year in the light of seasonal nature of their energy requirement. The Commission clarifies that in accordance with the regulations specified by the Commission the consumers have enough scope and right to revise their contract demand at appropriate time which will reduce the adverse impact of demand charge on low energy consumption during lean season.
3.18.9
One of the objectors has called for squaring off cross subsidies with Electricity Duty. But the latter, though collected through the bills from the consumers of electricity by the licensees, is not an element of the tariff determined in terms of the relevant provisions of the Electricity Act, 2003 and the concerned Regulations made thereunder. No squaring off between the two is therefore permissible.
3.18.10
There are some objectors who are against any increase in the load factor and power factor surcharge, while some other objectors have proposed higher rebates and lowering of the threshold limits for qualifying for the rebates. While the Commission has, after a careful consideration of all relevant factors, taken appropriate views that may be seen at the concerned portions of this tariff order, it needs to be stated that rebates and surcharges of various amounts are universally used as incentives and disincentives for leading the consumers to particular directions that are considered useful and beneficial to the entire system. These rebates and surcharges in question tend to improve capacity utilization and voltage of supply besides leading to reduction of loss in the distribution system. There, therefore, is no technical or economic reason for
48
accepting such suggestions as those made by the first group of objectors. Simultaneously, there is also no reason to increase the extent of rebate or to lower the qualifying thresholds only to benefit a particular group of consumers. There should be a judicious balancing between these two extreme views.
3.19
There are quite a few other objections and suggestions that have not been mentioned in the foregoing sub paragraphs from 3.18.1 to 3.18.9. But the Commission has gone into merits of all such objections and suggestions irrespective of their specific mention or absence of such specific mention in the instant tariff order.
49
CHAPTER 4 LAW POINTS ON HEARING

4.1 One issue that has been raised by more than one objector concerns the question of hearing, i.e., these objectors have expressed a desire to be heard before the tariff is determined by the Commission. Since this is an oft repeated issue, the Commission would like to give the matter a close look before going into the nitty gritties of determination of tariff. Besides, the Commission has not, as a matter of fact, given any hearing either to the tariff petitioner or any of the objectors by way of observing procedural formalities. detailed treatment at the very beginning. The matter therefore deserves a
4.2
The Commission has meticulously followed the provisions of section 62 and section 64 of the Electricity Act 2003 while determining the tariff in question. Of these two, section 64 ibid contains the procedure of determination of tariff, and a bare reading of section 64, along with its sub sections clearly shows that while issuing a tariff order under section 64(3)(a) ibid, the Commission is required only to consider all the suggestions and objections received from the consumers, stake holders etc. but is not required to hear them. The Commission is of its considered opinion that under the Electricity Act,2003, the legislators have deliberately excluded any scope of hearing while determining tariff in terms of section 62 read with section 64 of the Act.
4.3
It is to be noted that hearing has been specifically required in case the Commission decides to reject a tariff application in terms of section 64(3)(b) ibid, if in the opinion of the Commission, the application under section 64(1) is not in accordance with either the provisions of the Electricity Act,2003, or the Rules, or the Regulations made thereunder, or the provisions of any other law for the time being in force. In other words, the Commission, even though empowered to reject a tariff application, can reject the same only after granting an opportunity of being heard to the applicant licensee or the generating company. Therefore,
50
section 64(3)(b) ibid limits the scope of hearing only to cases of outright rejection of a tariff application. On the issue of hearing, the provision of section 64(3)(a) is in clear and sharp contrast to the provisions of section 64(3)(b). So much so, that it leaves one with no doubt that the exclusion of the requirement of hearing from section 64(3)(a) is a deliberate exclusion, the requirement of hearing being
substituted by the requirement of consideration of all suggestions and objections received from the public.
4.4
It is also relevant to note that the Electricity Act, 2003 has laid down the specific requirement of hearing wherever the same is intended. The Act has entrusted the Commission with different kinds of functions. Determination of tariff under section 62 read with 64 is only one of such functions. In respect of some functions, the statute has clearly mandated the Commission to provide hearing. Some examples of such sections are being 15(6)(b), 57(2), 142 and 143. These may be seen in contrast to sections 19(3), 63, 128(6) and 130 where the scope of hearing has deliberately excluded. It may also be noted that if tariff is determined under section 63 of the Act through a process of bidding, no hearing is required to be given to anyone.
4.5
Moreover, in line with the Electricity Act,2003 Commission has also framed the West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2007. Regulation 2.10.1 of said WBERC (Terms & Conditions of Tariff) Regulations 2007 also exclude the scope of any hearing either to any licensee or to a generating company or to the consumer or to the public while determining tariff.
4.6
The Commission is, therefore, of the opinion that under section 64(3)(a) read with regulation 2.10.1 of the WBERC (Terms and Conditions of Tariff)
Regulations, 2007 no hearing is required to be given either to a tariff applicant or to the consumers or to the public. What is required is consideration of
suggestions and objections received from the consumers and / or public. Therefore, the Commission rejects the contention of all the objectors who have sought hearing in the process of determination of tariff.
4.7
This point of law, as to whether in view of section 64 of the Act hearing is to be given to the licensee and consumers at large before tariff is determined was an issue in a writ petition being W.P.No.16166(W) of 2004 filed before the Honble High Court, Calcutta in which West Bengal Electricity Regulatory Commission was one of the respondents. The Honble Justice Pinaki Chandra Ghose by an order dated 04.10.2004 having considered the judgment of the Honble Supreme Court reported in (2002) 8 SCC 715, inter alia held that :
After going through the said Regulations it appears to me that
hearing was not contemplated under the said Section 64 of the said Act and the Regulations framed thereunder. Therefore, in my opinion, not granting of a hearing to the petitioner cannot said to be violation of natural justice after construing the said Act and the Regulations framed thereunder. Therefore, in my opinion, it cannot be said that at this stage the said order has been made arbitrarily or any violation of natural justice The aforesaid order dated 4th October,2004 of the Honble Justice Pinaki Chandra Ghose was challenged before the Honble Division Bench of the Honble High Court in an appeal being MAT No.596 of 2005. The Honble Division Bench comprising of the Honble Justice Aloke Chakrabarti and the Honble Justice S.P.Talukdar affirmed the order of the Ld. Single Judge by an order dated 25th February 2005 and, inter alia held that :
4.8
. After due consideration of the relevant provisions of the Act,2003 and having regard to the submission made by the learned Counsel for the
parties, we think that what is required at the stage of determination of tariff is consideration and not hearing
4.9
However, the Writ petition was dismissed for default by an order dated 29.03.07 by the Honble Justice Aniruddha Bose due to non-appearance of the Ld.Advocate for the writ petitioner. The Commission records here that the Commission is aware of the fact that the aforesaid orders were interim in nature and by virtue of the order dated 29.03.07 to the effect of dismissal of default of writ petition being W.P 16166(W) of 2004, those earlier orders of Honble High Court, Calcutta do not exist. Nonetheless, the relevant part of the aforesaid two orders are recorded to here only for the fact that the view taken by the Commission was accepted by the Honble High Court, Calcutta, while passing the interim order prior to dismissal of the writ petition on the ground of nonappearance of the Ld. Advocate for the writ petitioner.
4.10
The Commission therefore passes the instant tariff order for WBSEDCL for the year 2007-08 without giving any hearing to either the tariff petitioner or any of the objectors, but after taking into consideration all suggestions and objections received from the public.
53
CHAPTER 5 SCHEDULE OF PURCHASE, OWN GENERATION AND ENERGY BALANCE

5.1 West Bengal State Electricity Distribution Co. Ltd. (WBSEDCL) has, with effect from 1.4.2007, become a major deemed distribution licensee in the State and has been entrusted with the responsibility to supply electricity to different categories of consumers scattered throughout the State barring the licensed area served by CESC Ltd., Durgapur Projects Ltd. and DPSC Ltd. Only a small part of the energy requirement for supply to WBSEDCL consumers comes from the hydro power stations in its ownership while the balance energy requirement for distribution and supply in its licensed area is sourced by way of purchase.
Gross purchase of energy requirement during the year 2007-08 has been assessed by the licensee to be 23,359.52 MU out of which the major quantum of 16,020 MU is proposed to be procured from thermal power stations from WBPDCL including the power from upcoming units of Sagardighi Thermal Power Station and Bakreswar (Unit 4 & 5) Thermal Power Station. From Central sector generation 3,200 MU of energy is proposed to be procured from Thermal Power Stations of NTPC, 680 MU has been assessed to be procured from Chukha & Kurichhu (Bhutan) through PTC and 1,350 MU will be procured from Tala Hydro Electric Power (Bhutan). From Rangit Hydro Electric Power (NHPC) 74 MU is proposed to be procured and a total of 752 MU is proposed to be procured from DVC which includes 62 MU of peak power. Balance requirement of energy is stated to be procured from other state sector utilities like DPL, DPSCL and by importing energy through traders. In addition to this green power from co-
generation, WBREDA etc. shall also be procured.
54
The planning for procurement of energy is said to have been done on the basis of following factors:-
(i)
Consumption under different categories of consumers estimated from the trend of growth of consumption of respective categories.
(ii)
Sale to CESC Ltd. and DPSC Ltd.
(iii)
Sale to Govt. of Sikkim @ 20% of sent out generation from Rammam Hydel Station Stage-II.
(iv)
Sale of incidental surplus energy to others through competitive bidding.
(v)
Estimated consumption & loss in distribution system of WBSEDCL.
(vi) 5.2
Generation that may be available from its own generation.
The Commission has assessed requirement of energy intake of WBSEDCL from the sources available in the State. The supply to be received by WBSEDCL from DPL has been assessed at three different voltage levels of 132 KV, 33 KV and 11 KV. In regard to supply from DPSCL, purchase of energy at 18 different locations has been considered. Supply to DPSCL at Bankola point has been treated separately as sale of energy by WBSEDCL to DPSCL. Purchase of power from Kolaghat, Bakreshwar, Bandel and Santaldihi Power Stations of WBPDCL has been assessed by the Commission on the basis of energy sent out from these power stations as allowed by the Commission in the tariff order of WBPDCL for 2007-08. Power from upcoming power stations of WBPDCL, i.e., Bakreswar, Santaldihi and Sagardighi have been considered for a total quantum of 2805.00 MU.
55
The requirement of energy intake from sources available in the State as proposed by WBSEDCL and the quantum as allowed by the Commission are as under:-
Sources
WBPDCL DPL DPSC Limited Hooghly Metcoke WBREDA Green Power & Cogen. CESC Ltd. (Radial)
Supply (MU) As projected by As assessed by the WBSEDCL Commission 16020.00 16833.13 718.00 160.00 295.00 0.32 70.00 384.24 160.00 295.00 1.00 70.00 71.00 17263.32 17814.37
Total: 5.3.1 Some of the objectors have objected to higher quantum of purchase from external sources while operating the own plants of WBSEDCL at low PLF and PAF. On the said issue one objector has appealed for rejection of proposal of WBSEDCL for excess purchase.
The Commission has treated the PLF of hydel plants of WBSEDCL and their availability separately under paragraph 5.4.4.
The Commission has considered the following additional factors in allowing the quantum of power purchase requirement by WBSEDCL to meet its commitment to supply electricity to its own consumers in 2007-08:-
56
(i)
Need to supply to other distribution licensees of the State including supply to meet the high peak requirement of these licensees after meeting the peak requirement of the LT dominated own demand of WBSEDCL.
(ii)
Full utilization of allocation from Central Sector.
(iii)
Emergency procurement to meet the peak demand in its own licensed area and Merit Order of purchase.
(iv)
Additional requirement of energy for making the sale of incidental off-peak surplus marketable. (The incidental surplus arises out of low system load factor and high peak / off-peak ratio in thermal dominant WBSEDCL system).
5.3.2
One of the objectors has objected to the purchase of power from DPSCL @ Rs.3.30 per unit and raised the question about the quantum of purchase from DVC. The purchase of power by WBSEDCL radially from DPSCL and DVC is in the process of being totally phased out by commissioning of newly constructed Asansol 220 KV substation and the associated lines for taking over the entire load in and around Asansol area. It has been reported that the work is in the advance stage and is likely to be completed shortly. The Commission urges WBSEDCL to complete the infrastructure to ensure that the demand in its licensed area is met from state grid instead of through radial purchase.
The Commission has carefully examined the quantum of power purchase allowed to WBSEB for 2006-07 and does not agree with the objectors view that the quantum of power purchase allowed by the Commission for the year 2006-07
was higher than actual power purchase of WBSEB in that year. The Commission shall, however, in accordance with the provisions of the tariff regulations take appropriate measure in this regard on getting actual audited figures in future.
Some objectors have objected to the rate of purchase of wind power from WBREDA. The Commission has noted that the purchase cost proposed by WBSEDCL in the tariff petition is in accordance with WBERC Regulation No.28/WBERC dated 04.05.2006. Some objectors have also suggested to
increase the purchase from renewable sources. The aforesaid regulation specified by the Commission regulates the gradual rise of such purchase by each licensee.
5.3.3
The following statement shows the purchase proposal put up by WBSEDCL and the purchase programme approved by the Commission. The statement also shows the source-wise cost of power purchase taking into consideration grid loss, transmission charges, SLDC / ERLDC charges & other charges associated with the purchase.
SCHEDULE OF PURCHASE
PARTICULARS As Projected MU (i) WBPDCL: (Existing) (a) Kolaghat (b) Bakreswar (c ) Bandel (d) Santaldihi (New Units) Rs. Lakh As Found Admissible MU Rs. Lakh
6760.00 4200.00 1860.00 1150.00 2050.00 16020.00 269861.01
6957.24 3810.44 1991.76 1268.69 2805.00 16833.13
131770.72 67657.93 41636.81 25012.50 53202.44 319280.40

58
Total
(ii) DPL (a) 132 KV (b) 33 KV (c) 11 KV Total DPL: (iii) DPSC Ltd. (iv) Hooghly Metcoke (v) NTPC (a) Farakka (b) Talcher Total (vi) NHPC (Rangit Hydro) (vii) PTC (a) Chukha Hydel (b) Kurichhu Hydel Total PTC: (viii) Tala (ix) WBREDA (x) DVC (a) 32 KV (Radial) (b) 33 KV (Radial) (c ) 11 KV (Radial) (d) Peak Total DVC: (xi) Govt. of Sikkim (xii) From Trader (xiii) Green Power (Electro Steel) (xiv) CESC Ltd. (Radial) Gross Total: Less : CTS Grid Loss: Nett Purchase & cost
565.00 145.00 8.00 718.00 160.00 295.00
12372.37 3175.21 198.24 15745.82 5280.00 5487.89
231.24 145.00 8.00 384.24 160.00 295.00
5611.38 3518.64 194.13 9324.15 5676.18 5487.88
2600.00 600.00 3200.00 74.00 53898.08 1475.56 3200.00 74.00 53897.60 1475.56
530.00 150.00 680.00 1350.00 0.32 10889.52 24840.00 8.00
530.00 150.00 680.00 1350.00 1.00 10889.52 24840.00 25.00
46.00 643.00 1.00 62.00 752.00 0.20 40.00 70.00
21040.17 2045.57 23085.74 7.44 1944.00 1771.00
690.00 62.00 752.00 0.20 40.00 70.00 71.00 23910.57 206.33 23704.24
21040.17 2045.57 23085.74 7.44 1944.00 1771.00 1889.00 459593.47 459593.47

59
23359.52 208.00 23151.52
414294.06 414294.06
Add: Other costs associated with purchase
(a) Transmission charges (b) SLDC/ERLDC & other charges (c) Wheeling Charges to CESC/DVC Less: Rebate for timely payment on purchase cost Grand Total:
7146.00 216.96 2.00
7146.00
23151.52
1555.14 420103.88
23704.24 Average (P/kwh)
1555.14 465184.33
196.24
5.4.1
In the next few paragraphs the Commission gives its views on the generation of power by WBSEDCL from its own sources and draws an energy balance taking into consideration the purchase requirement as provided in the previous paragraphs, sale to persons other than the licensees and consumers, supply of power to other state utilities and admissible transmission and distribution losses.
5.4.2
Part of the total requirement of power is met from the generation at the hydel power stations of WBSEDCL. Besides hydel power stations, WBSEDCL will also avail power from the Purulia Pump Storage Project which is in the advance stage of construction. In addition to this a diesel generating station at Rudranagar in Sagar Island is also programmed to generate to supply the load in that area with supplementary support from non-conventional energy sources (solar power). Gas Turbine stations at Kasba, Haldia and Siliguri totaling 90 MW capacity which were built to mitigate the peak shortage and to meet the emergency requirement are now stated to be in defunct condition due to normal wear & tear. No
generation from these power stations and no cost for these power stations have been considered for the year 2007-08. The Commission has noted that fixed
60
assets of the aforesaid gas turbine stations are depreciated almost upto the level of residual value and hence there is insignificant implication of keeping these stations out of operation in the revenue requirement of WBSEDCL. 5.4.3 Estimated generation from own generating stations of WBSEDCL has been shown as under:Unit PLF In % 45.66 49.24 16.91 9.51 45.66 39.95 45.66 17.45 Gross Generation (MU) 140.00 220.00 100.00 2.00 6.00 7.00 12.00 860.00 1347.00 Auxiliary Consumption (MU) 1.25 1.55 1.00 0.03 0.06 0.06 0.05 6.00 10.00 Energy Sent out (MU) 138.75 218.45 99.00 1.97 5.94 6.94 11.95 854.00 1337.00
Jaladhaka Rammam Teesta Fazi Little Rangeet / Bijanbari Rinchinton Mangoo Kalikhola Purulia P.S.P. Generation Total : Generation from diesel station Grand Total :
0.64 1347.64
0.64 1337.64
5.4.4
The objectors have attributed the reason of higher purchase from external sources to the low PLF in the own hydro power stations of the licensee. The objectors have proposed to consider higher PLF and availability factor for these power stations of WBSEDCL while computing the tariff for 2007-08.
61
It has been observed that for Jaldhaka HEP, the petitioner has projected a PLF of 45.66% for 2007-08 which is lower than both the actual PLF attained in 200506 and estimated PLF of 2006-07. The licensee has not given any valid reason for projection of such a PLF. The Commission also cannot allow such gradual erosion of performance without any valid reason. The Commission, therefore, disallows projected PLF of 45.66% for 2007-08 and has considered a PLF of 49% for Jaldhaka H.E.P which in the view of the Commission is achievable during the year 2007-08 with normal monsoon. The PLF of Teesta Canal Fall
has also been considered at 17.2% rejecting the estimated PLF of 10.15% for 2006-07. Regarding Plant Availability Factor the Commission urges the licensee to carry out all maintenance & overhauling work during low-hydro period so that effective availability during high-hydro period improves. On the basis of above reasoning the Commission has considered the generation from own generating plants of WBSEDCL as follows:Unit PLF In % 49.00% 49.25% 17.20% 9.51% 45.66% 39.95% 45.66% 17.45% Gross Auxiliary Generation Consumption (MU) (MU) 149.00 1.25 221.00 101.00 2.00 6.00 7.00 12.00 860.00 1358.00 1.55 1.00 0.03 0.06 0.06 0.05 6.00 10.00 Energy Sent out (MU) 147.75 219.45 100.00 1.97 5.94 6.94 11.95 854.00 1348.00
Jaladhaka Rammam Teesta Fazi

Little Rangeet / Bijanbari
Rinchinton Mangoo - Kalikhola Purulia P.S.P. Generation Total :
62
Generation from diesel station Grand Total :
14.60%
0.64 1358.64
NIL
0.64 1348.64
5.5.1
After considering the projection of energy purchase and the projection of energy availability from own generation, the Commission is to examine the energy balance as it comes out of the submission of WBSEDCL as under:-
All figures in MU
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total Energy purchase at 400 / 220 / 132 KV Less: Grid loss for CTU Sent out Energy from Hydel Power Stations and injected to STS at 132 KV Sent out Energy from PPSP and injected to STS at 400 KV Total Energy injected to STS : Transmission Loss in MU @ 4% Energy Transmitted to WBSEDCL (MU) Energy Input to WBSEDCL from WBSETCL (MU) Energy Purchase at 33/11 KV & Generation at 11 KV (MU) Energy Available in the System (MU) Unit Exported (MU) Sale to Sikkim (MU) Sale to CESC Ltd. & DPSC Ltd. (MU) Loss for CESC Ltd. & DPSC Ltd. (MU) Unit used for pumping energy to PPSP (MU) 22332.25 208.00
483.00 850.00 23457.25 939.25 22518.00 22518.00 1027.91 23545.91 5075.00 80.00 945.00 41.41 1130.00
63
16 17 18 19 20 21 22 23 24
Additional Units allowed against pumping energy (MU) Additional Units to be allowed by Commission for wheeling of power through CESC Ltd. system (MU) Total Energy goes out of system (MU) Net Energy in System (MU) Units sold to consumers (MU) Units utilized in own premises including construction power (MU) Overall Utilisation (MU) Distribution Loss in MU Distribution Loss in %
35.00
4.74 7311.15 16234.76 12896.00
36.00 12932.00 3302.76 20.34
5.6
In regard to the energy sourced from own generation and net purchase the same has already been viewed earlier. Each of the components in the energy utilisation part is being analysed with views hereunder one by one.
5.6.1
Sales to own consumers:
In view of revocation of distribution license of Singur Haripal Rural Electric Cooperative Society Ltd. (SHRELCOP), WBSEDCL is acting as an administrator of the utility SHRELCOP w.e.f. 1.4.2007. The total projected consumption of different categories of consumers of the said Society has, therefore, been clubbed in the projected consumption of WBSEDCL for the respective categories. The entire requirement of energy of the Society has been proposed to be met by WBSEDCL. The total sales during 2007-08 to different categories of consumers have been projected to be 12,896 MU with the following break up.
64
Voltage of Supply
Category
Projected consumption in MU 4260.00 885.00 854.00 92.00 950.00 95.00 7136.00 14.00 724.00 4337.00 685.00 5760.00 12896.00
(a) L & MV supply (i) Domestic
(ii) Commercial (iii) Industrial (iv) PW Works (v) Irrigation / Agriculture (vi) Public Lighting Sub-total (a) (b) HV & EHV supply (i) Domestic (ii) Non Industrial & Others (iii) Industrial (iv) Traction Sub-total (b) TOTAL SALE TO OWN CONSUMERS (a + b)
The total sales of 12896 MU during 2007-08 to different categories of consumers show rise of 10.63% over the total estimated sale during 2006-07 and 21.35% increase from level of sales during 2005-06. The Commission considers such growth rate rational in the existing circumstances and urges the licensee to complete 100% metering arrangement expeditiously to record higher growth rate of sale of energy. The Commission agrees with the projected sales of 12896 MU for the year 2007-08.
5.6.2
WBSEDCL has projected 36 MU as consumption at its own premises including the construction power. Actual figure for such consumption for 2005-06 was 30 MU and the estimated figure for 2006-07 was 34 MU. The Commission finds the requirement of 36 MU for own consumption reasonable and agrees with the projected figure.
65
5.7
5.7.1
Transmission & Distribution (T&D) Loss:

The loss in the distribution system of WBSEDCL has been projected by the licensee at the level of 20.34% for the year 2007-08. Assuming 4% transmission loss in the transmission system of WBSETCL the energy output from WBSETCL gets reduced by 4% and enters WBSEDCL system as input. 20.34% distribution loss as claimed by the licensee at that lower input energy base is equivalent to 19.53% distribution loss when converted into the same base energy for input of WBSETCL. But some of the objectors have inferred that with 4% transmission loss in WBSETCL System & 20.34% Distribution loss as claimed in WBSEDCL System total loss in the combined systems of WBSETCL & WBSEDCL (which is equivalent to erstwhile WBSEB System) adds upto 24.34%. The Commission does not agree with such inference as the same is based on a wrong method of calculations. The Commission is of the view that the T&D loss as projected in combined systems of WBSEDCL & WBSETCL is equal to (19.53 + 4)% = 23.53%, due to the reasons already discussed.
5.7.2
The Commission has received many observations and objections from almost all the objectors in respect of the T&D loss that should reasonably be allowed to the licensee. These objectors have suggested various levels of lower percentage for T&D loss for determining the tariff. Some of the objectors have linked the T&D loss with rebate allowed on energy charge and have proposed higher percentage of rebate in order to compensate for high T&D loss. The Commission has
carefully considered all the observations made by the objectors and has taken note of the suggestions made by the objectors to contain the rate of T&D loss to a reasonable level. The licensee in their petition has on the other hand tried to explain that, due to severe financial constraints of the past years proper infrastructure as warranted by prudent utility practice could not be developed. Moreover, due to massive programme of rural electrification under APDRP and
RGGVY schemes, extensive LT supply has given rise to the higher growth in LT category causing further deterioration of HT / LT ratio. The question before the Commission therefore is as to what extent the T&D loss in the system of WBSEDCL can be allowed for recovery from the consumers for the year 2007-08 and at the same time maintain a reasonable balance between the interest of the consumers and the licensee.
5.7.3 For the purpose of energy balance the Commission allowed 23% T&D loss for
2006-07 for WBSEB system which was bifurcated during restructuring of WBSEB into the transmission system of WBSETCL and distribution system of WBSEDCL.
The T&D loss of 24.7% has been projected by WBSEDCL in the combined system of WBSETCL & WBSEDCL in 2007-08 considering 20.34% distribution loss in the WBSEDCL system. The Commission does not agree to projected 20.34% of distribution loss and allows 19.50% as distribution loss for WBSEDCL system. The Commission, however, has not taken any view on the programme of reduction of T&D loss during the next five years as submitted by WBSEDCL in the tariff petition in pursuance of the Directives of the Commission issued in the tariff order for 2006-07. The Commission has already engaged consultants in this regard whose report is expected shortly. The Commission will take a view
on the programme of reduction of T&D loss thereafter.
5.8
Bulk supply to other licensees: The other licensees in the State who were traditionally receiving bulk supply of power from WBSEB, the erstwhile licensee, are CESC Ltd., DPSC Ltd. and
67
SHRELCOP. Since the distribution license of SHRELCOP has been revoked and WBSEDCL is acting as administrator the total projected consumption of different categories consumers of the said Society have been clubbed in the projected consumption of the identical categories of erstwhile WBSEB. The supply of energy to DPSC Ltd. at 33 KV at Bankola has been treated as sale of energy by WBSEDCL to DPSC Ltd. totally de-linking this sale from purchase of power from DPSC Ltd. by WBSEDCL at 18 different locations near and around Asansol. WBSEDCL has considered a sale of 45 MU of energy to DPSC Ltd. DPSC Ltd. in its tariff petition has projected 40.83 MU as its purchase quantum from WBSEDCL at Bankola. Commission has taken a view to take into consideration the purchasers requirement in this regard and accepts 40.83 MU of energy as sale of WBSEDCL to DPSC Ltd. in 2007-08. On the basis of present trend of drawal of CESC Ltd. at four different points the consumption of CESC Ltd. during 2007-08 has been projected to be 900 MU. CESC Ltd. on the other hand has projected a requirement of 1351 MU of energy for purchase from WBSEDCL in 2007-08. The Commission after full analysis of requirement of CESC Ltd. considers 1299.36 MU of energy as sale of WBSEDCL to CESC Ltd. during 2007-08. Considering 74 MU of energy for supplying to CESC Ltd.
radially, total sale to CESC Ltd. comes to 1373.36 MU. The Commission also has assessed the requirements of DPL to take supply from WBSEDCL during the period before its 300 MW unit is commissioned. Such requirement will be 184.00 MU.
The Commission is of considered view that the demand of bulk supply to other licensees in the State should be met first by WBSEDCL. After meeting the energy requirement of its own consumers and the requirement of aforesaid licensees of the State, the residual energy which would be available shall be utilized for sale to person other than the licensees and own consumers.
68
The quantum of bulk supply to the licensees in the State, thus is considered, as under:M.U DPL CESC Ltd. DPSC Ltd. Total : 184.00 1373.36 40.83 1598.19
In addition to the above quantity, WBSEDCL will be supplying 43.69 MU to Sikkim under the existing agreement. The total of such bulk supply, thus, comes to 1641.88 MU.
5.9
Supply of pumping energy to P.P.S.P:
Purulia Pump Storage Project with the installed capacity of 900 MW is nearing completion. This project will absorb off-peak surplus of the system in its pumping mode and will generate 900 MW of peak power when fully commissioned. The project will contribute 1700 MU per year. In the year 2007-08 gradually all the units are expected to be commissioned and total sent out energy to be available from PPSP during 2007-08 has been projected at 850 MU. As per the design data the energy requirement at the 400 KV bus bar at P.P.S.P for pumping mode operation is 1130 MU.
5.9.1
One of the objectors in its objection has argued that the proposal of WBSEDCL to procure 850 MU of energy in 2007-08 by purchasing 1130 MU of energy for use in pumping mode is uneconomical and hence Rs.52.64 crore as the cost of excess power purchase on this account be disallowed. The Commission after carefully considering the objection rejects the same inspite of the fact that the inherent characteristic of a pump storage project is such that it consumes more than the delivered energy. It is important to note that energy supply to PPSP is
69
for utilization of off-peak surplus for the purpose of meeting the peak shortage and is one of the recognized methods of indirect short time storage of electricity. The ability of the pump storage plant to quickly change over from pumping mode to generation mode with the facility for fast loading makes this type of generation particularly useful for meeting grid emergency. Further, it is impossible to
overlook the latent financial benefits of PSPP. It must be noted that the cost of peak power is rising fast and availability of peak power from external sources has been coming down sharply due to all out peak shortage all over the country. In the meantime U.I rate has already been enhanced by CERC. All this signifies that peak power is going to be costlier than it is now, and for quite some time to come, it may well continue to be so. On the other hand, off peak power is and will be considerably cheap. Therefore, obtaining peak power in lieu of off peak power should yield favourable financial results. Moreover, full requirement of energy for PPSP is less than 10% of total purchase of WBSEDCL in 2007-08 and the impact on cost will be marginal keeping in view the advantage of meeting the peak and trend of rise in total purchase quantum of energy in future years. Some objectors have also objected to the projected figure of auxiliary consumption of P.P.S.P. The Commission will review the requirement in due course when actual quantum of pumping energy utilized in PPSP and its auxiliary consumptions are available.
5.9.2
Under the circumstances, the considered view of the Commission is that proper utilization of PPSP will help in reducing peak shortage, will facilitate purposeful utilization of thermal capacity and will assist in protecting the consumers interest in equitable supply of power during peak and off peak. The Commission
therefore, does not agree with the opinion of the objector that energy from PPSP is uneconomical. For the year 2007-08 the Commission accepts the figure of supplying 1130 MU of energy for use in pumping mode and 6 MU of energy for auxiliary
consumption.
However, the Commission does not agree with the 35 MU of
projected energy as additional units against pumping energy for 2007-08.
5.10
Energy Balance:
Based on the analysis done in the preceding paragraphs and decisions recorded hereinabove, the Energy Balance for WBSEDCL for the year 2007-08 is drawn as follows: ENERGY BALANCE
Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Particulars A. ENERGY INPUT TO THE DISTRIBUTION SYSTEM Gross energy from Central Sector allocation for WBSEDCL Energy loss in Central Transmission System @ 3.89% Net energy injected from C.S into WBSETCL (1-2) Net energy injected into WBSETCL against purchase from State sources & traders Net energy injected into WBSETCL from own generation Total energy injected into WBSETCL (3+4+5) Transmission loss in WBSETCL @ 4% Net energy available in WBSETCL (6-7) Energy outgo from WBSETCL transmission system to a) CESC Ltd. 1299.36 b) Sikkim (as per contract) 43.69 c) DPL 184.00 d) PPSP 1130.00 e) Persons other than licensee of the State & own consumer 5229.72 Total energy outgo from WBSETCL (sum a : e) Energy input from WBSETCL to WBSEDCL (8-10) Energy injected directly to WBSEDCL at 33 KV & below Total energy available in WBSEDCL own system (11+12) B. ENERGY UTILISATION IN WBSEDCL SYSTEM Units sold to own consumers Units sold to DPSC Ltd. Units sold to CESC (Radial) Units utilised in own premises including construction power Un-utilised units (Distribution loss @ 19.5%) Total energy (sum a: e) MU 5304.00 206.33 5097.67 17507.57 1348.64 23953.88 958.15 22995.73
10. 11. 12. 13. a) b) c) d) e)
7886.77 15108.96 1099.00 16207.96 12896.00 40.83 74.00 36.00 3161.13 16207.96
71
5.11
If the abnormal power loss can be plugged through the measures taken / proposed to be taken by WBSEDCL, the target of normative sale should be fully achievable.
5.12
The power purchase cost as allowed in the present order is subject to periodical adjustment in terms of the formula for Fuel & Power Purchase Cost Adjustment (FPPCA) as specified in relevant regulations.
72
CHAPTER 6 FIXED CHARGES

6.1 The projected amount of total fixed charges, as per the submission of WBSEDCL comes to Rs.210111.16 lakh. This amount is net of the capitalization of the part of the expenses under different heads chargeable to ongoing capital construction works. The total income to be generated from the different non -tariff sources has been estimated to be Rs.16805.24 lakh. Hence, the net amount of fixed charges proposed to be built in the tariff recoverable from the consumers and for bulk supply of energy to other licensees of the State comes to Rs.193305.92 lakh. The amount of fixed charges to be recovered from the consumers has, however, been proposed to be reduced by 90% of the gains to be derived by the applicant from the sale of energy by it to the persons other than the licensees and consumers in terms of the Commissions Tariff Regulations. Such amount of benefits to be passed on to the consumers has been estimated to be Rs.76067.86 lakh. The Commission has taken up a prudent analysis of the expenditures/ charges under different heads with reference to the reasonableness. 6.2 Employees Cost The total amount of employees cost projected for the year 2007-08 is Rs.36954.32 lakh with the following break-up: Rs. in lakh Generation Distribution Total 1235.77 35718.55 36954.32
The projected amounts include the provision for contributions to employees terminal benefits funds like PF and gratuity.
73
The Commission has viewed the amount of projected expenditure with reference to the actual expenditure incurred by the erstwhile WBSEB in 2005-06 i.e., prior to its re-structuring for all three functions of generation, transmission and distribution. The actual expenditure was for a total amount of Rs.42476.00 lakh. The estimated expenditure during 2006-07 is Rs.48255.29 lakh considering WBSETCL and WBSEDCL together as against projected expenditure of Rs.4839.03 lakh and Rs.36954.32 lakh respectively. It, therefore, comes out that the projected expenditure towards employees cost considering two successor companies of erstwhile WBSEB, is considerably less than the actual expenditure of 2005-06 and also of the estimated expenditure of 2006-07. This is mainly due to creation of a separate employees terminal benefit fund through Bonds to take care of the earlier liabilities in this regard. The Commission finds the projected expenditure under the referred head justifiable and admits the same. 6.3 Repairs and Maintenance The projected expenditure towards Repairs & Maintenance for the generation and a distribution function of WBSEDCL is as under: Rs. in lakh Generation Distribution Total 669.50 8771.72 9441.22
There is marginal difference in the figures of Rs.9448.19 lakh in this regard taken by the applicant in the projected statement of Summarized Revenue Requirement. The comparative actual expenditure figure for the year 2005-06 in respect of WBSEDCL is not separately available. The Commission, therefore, has based its analysis on the estimated expenditure in the base year, i.e., 200607. The instant tariff revision application has been filed by WBSEDCL after
completion of the financial year 2006-07 and hence the figures of estimated expenditures can be termed as un-audited actuals. Such un-audited actual repairs and maintenance expenses for generation function for the aforesaid previous year was Rs.796.59 lakh as against which the applicant has asked for Rs.669.50 lakh for the year 2007-08. The Commission admits the same. So far as distribution function is concerned, the un-audited actual expenditure in the year 2006-07 came to Rs.8751.03 lakh. A marginal increase on this score in 2007-08, is, in the considered opinion of the Commission, justifiable in view of the additions in the distribution networks over the year. The total expenditure towards repairs and maintenance (including cost of consumables) for the year 2007-08 is, thus, admitted for Rs.9440.22 lakh. 6.4 Rent, Rates & Taxes The amount claimed towards Rent, Rates & Taxes (other than the tax on income and profit) in the statement of Summarized Revenue Requirement) is for Rs.615.45 lakh. The amount so claimed is not supported by the details of function-wise expenditures statements submitted in Format 1.12, 1.15 and 1.17. Based on the information provided to the Commission in Form 1.17 (other expenses centrally maintained), the expenditures on this account are admitted as under: Rs. in lakh Generation Distribution Total 6.5 Legal Expenses The estimated legal expenses during 2006-07 for the generation function and distribution function are for Rs.2.10 lakh and Rs.83.92 lakh respectively. Allowing
1.93 78.59 80.52
average 5% increase, we admit for a total amount of Rs.90.32 lakh for the year 2007-08 as against Rs.158.67 lakh claimed in the Statement of Summerised Revenue Requirements. 6.6 Audit Fees The amount of Rs.93.50 lakh towards audit fees claimed by WBSEDCL is considered admissible. In this regard, it is to mention that WBSEDCL is a newly formed Government Company and its accounts will be subject to audit by a firm of Chartered Accountants as well as by the office of the Comptroller and Auditor General of India in terms of the provision of the Companies Act. It may also have Cost Audit like other companies in the power business, if so notified by the Company Law Board. The provision of audit fees and expenses as projected by it and admitted is likely to fall short of the requirements. It is, therefore, stipulated that WBSEDCL may ask for the reimbursement of the shortfall in this regard at the time of subsequent tariff revision. 6.7 Other Administration and General Charges As we get from the submissions of WBSEDCL, the amount projected towards other administration and general charges comes to Rs.6646.22 lakh with the following function-wise break-up: Rs. in lakh Generation Distribution Central overhead Total 330.91 5015.92 1299.39 6646.22
The projected amount is to meet the expenses under a number of heads of expenses like traveling and communications, security, general establishment
insurance etc. The Commission has viewed the projection with reference to the expenditures incurred by erstwhile WBSEB during 2006-07 for the generation and distribution functions. It has been observed that for these two functions, total general and administration charges comes to Rs.6374.94 lakh in the base year, i.e., 2006-07. In the considered opinion of the commission, a 4% increase on the amount allowed in 2006-07 should be adequate for this purpose in 2007-08. The Commission thus admits an amount of Rs.6630.00 lakh for 2007-08. 6.8 Interest & Finance Charges (a) Interest on Borrowed Capital WBSEDCL, as a new entity, is to take over the business of distribution and hydro-power generation of former WBSEB, inherited an amount of Rs.302200.00 lakh as borrowed capital as on 31st March, 2006 as shown in Schedule B of the West Bengal Power Sector Reform Transfer Scheme, 2007 notified by the Government of West Bengal vide No: 12-PO/III/3R29/2006 dated 25.01.2007. Out of this amount of Rs.302200.00 lakh, Rs.194800.00 lakh was from the Government of West Bengal carrying interest @ 8.5%. The balance amount of Rs.107400.00 lakh is from different financial institutions and Central Government through CEA. WBSEDCL becomes functional with effect from 1st April, 2007. The subsequent transactions relating to repayments of borrowings, drawal of fresh borrowing and payments of interest during 2006-07 were, therefore, carried out in the books of former WBSEB. As it comes out from the submission of WBSEDCL, the position of the outstanding balance of total capital borrowing as on the date of its starting function i.e., on 1st April, 2007 is as under:
77
Rs. in lakh Particulars From Govt. of W.B 194800.00 34602.00 229402.00 From others Total
a) Outstanding balance as on 31.03.2006 b) Repayment during 2006-07 by WBSEB c) Fresh borrowings during 2006-07 by WBSEB Outstanding balance as on 1st April, 2007 (a-b+c)
107400.00 302200.00 13907.00 19237.00 13907.00 53839.00
112730.00 342132.00
With the above reconciled position of outstanding balance of borrowings at the beginning of the year, WBSEDCL has submitted its projections of repayment of borrowings, programmes for fresh borrowing as well as the chargeable amount of interest which are as under: Rs. in lakh Particulars From Govt. of W.B 229402.00 8154.00 47004.00 268252.00 From others Total
a) Balance at the beginning of the year b) Repayment during 2007-08 c) Fresh borrowing Balance outstanding at the end of 2007-08
112730.00 342132.00 15936.00 31825.00 24090.00 78829.00
128619.00 396871.00
The amount of total chargeable interest on the above borrowings, taking the projected repayment and fresh borrowings schedules in view, works out to
78
Rs.31571.00 lakh. Most of the outstanding balances of borrowing at the beginning of the year as well as the projected fresh borrowings relate to the capital construction works-in-progress. It has been estimated that 52.89% of the chargeable interest will be capitalized and the balance 47.11% amounting to Rs.14873.00 lakh will be in the revenue account. After detailed scrutiny of the data submitted, we admit the amount as claimed by the applicant for working out the Aggregate Revenue Requirement (ARR). (b) Interest on Bonds for Terminal Benefits to Employees Under the West Bengal Power Sector Reforms Transfer Scheme, 2007, as referred earlier, a 8.5% bond fund (2016) has been created for discharging pension and gratuity liabilities of the erstwhile WBSEB. An amount of Rs. 1530.00 crores of the total bond amounts of Rs. 1800 crores has been kept in the account of WBSEDCL. The annual interest charges on this amount of bonds in the accounts of WBSEDCL come to Rs. 13005.00 lakh and the same is admitted for ascertaining the Aggregate Revenue Requirement (ARR) for the year 2007 2008. (c) Interest on Security Deposits The interest accrual on the amount of consumers security deposits has been estimated to be Rs. 3618.35 lakh and the same is admitted. (d) Other Finance Charges The estimation of other finance charges as submitted by WBSEDCL in prescribed format 1.17(c) is for a total amount of Rs. 2186.93 lakh. It has been observed that an amount of Rs. 718.87 lakh has been considered in the estimation towards fees and expenses for restructuring, but what type of restructuring is contemplated has not been clarified. Restructuring of WBSEB and the formation of the successor entities have already been over and no
expenditure in this regard is likely to be done during 2007 2008. In the absence of any clarification, we are not admitting this projected expenditure. The other finance charges we admit for a total amount of Rs. 1468.06 lakh only. (e) Interest for Working Capital In terms of Regulation No. 4.6.5.1 of Tariff Regulations, 2007, the working capital requirement of the licensee requires to be assessed on normative basis @ 18% of the estimated annual sales revenue reduced by the amount of depreciation, deferred revenue expenditure and returns. The entitlement of WBSEDCL for interest on working capital, if computed in terms of referred regulations, will be around Rs. 9000.00 lakh As observed by us in paragraph 6.8(a), the outstanding balance of borrowings from the Government of West Bengal at the beginning of the financial year 2007 2008 was Rs. 229402.00 lakh. It has been stated by WBSEDCL that the detailed categorization of this amount of outstanding balance of borrowing from the State Government could not be analyzed and made available. In the absence of requisite information in this regard, we feel that part of the total borrowing from the State Government bearing 8.5% interest up to the end of 2006 2007 is towards meeting working capital needs. Accordingly, we allow interest on working capital for an amount of Rs. 7060.00 lakh as claimed. WBSEDCL is, however, directed to come up with proper information in its next tariff revision application categorizing the borrowing from different sources into capital constructions and working capitals. 6.9 Depreciation Depreciation on fixed assets as worked out by WBSEDCL with reference to Tariff Regulations, 2007, comes for a total amount of Rs. 21761.00 lakh with the following asset category wise break-up:
Rs. in lakh Generation Distribution Total 5664.00 16097.00 21761.00
The computations are based on projected capitalization of additional fixed assets of Rs. 255824.00 lakh and Rs. 141342.00 lakh for generation and distribution respectively. The Commission presently admits the amount of depreciation as claimed with the stipulations that any variation in the amount of chargeable depreciation due to variations in the projected amount of the capitalization or the date / dates of additional capitalization will be suitably adjusted at the time of subsequent tariff revision. 6.10 Intangible Assets Written Off The amount of Rs. 40.23 lakh as projected towards written off Intangible Assets, being part of the amount spent for formation of the company, is admitted. 6.11 Provision for Bad Debts In terms of the Tariff Regulations, 2007, the applicant may be allowed provision for Bad Debts for the amount as actually had been written off in the latest available audited accounts subject to a ceiling of 0.5% of the annual gross sale value of energy in the current year, i.e., 2006 07. It has been seen that an amount of Rs. 430.00 lakh was written of in the accounts for the year 2005 06 (copy of which was submitted along with the instant tariff revision application) and the same being less than 0.5% of the estimated sales revenue, is admitted. 6.12 Income Tax WBSEDCL has asked for Rs. 171.00 lakh towards fringe benefit tax under the provision of Income Tax Act. As has been seen in Schedule 17 to the Accounts
for the year 2005 06, an amount of Rs. 238.38 lakh was provided towards liabilities in this regard. We admit the amount actually provided, i.e., Rs. 238.38 lakh in this account. 6.13 Fixed Charges for Singur Haripal Rural Electric Co-operative Society Ltd.
6.13.1 Singur Haripal Rural Electric Co-operative Society Ltd. (hereinafter referred to as SHRELCOP) had been a distribution licensee operating in the Singur and Haripal area in Hooghly District. The license of SHRELCOP was revoked with effect from 31st December 2005 and as an interim measure, erstwhile WBSEB was appointed as Administrator and was ordered to continue to act in that capacity until further orders. That function has got vested to the WBSEDCL, the successor entity taking over the distribution business of erstwhile WBSEB. In the instant tariff revision application, WBSEDCL has considered the energy supply requirement for the areas that had been under the operation of SHRELCOP and has drawn its energy purchase programme accordingly. WBSEDCL has also clubbed the consumer base of the said area with its own consumer base for the recovery of tariff revenue. It is, therefore, necessary to allow the reasonable fixed charges relating to SHRELCOP that WBSEDCL will be required to incur as the Administrator. 6.13.2 WBSEDCL has submitted the following estimation of the fixed charges as will be requiring to incur by it for SHRELCOP. Rs. in Lakh a. Employees cost b. Repairs & Maintenance c. Rent, Rates & Taxes d. Legal Charges e. Audit Fees f. Other Administration & General 250.00 136.66 0.71 1.66 0.19 60.00
82
expenses g. Depreciation Total 46.69 495.69
WBSEDCL has also submitted that the total estimated expenditures under the above heads during 2006 07 will be Rs. 455.56 lakh. It has, however, been observed that WBSEDCL has missed to mention the amount of income to be derived from other non-tariff sources. Such incomes are to come from meter rentals, other service charges recoverable from the consumers and interest on investments made by SHRELCOP in the form of fixed deposits with the banks. It has also not asked for interest payable for the capital loan obtained by SHRELCOP from REC. In its tariff order dated 8th May 2006 for the year 2006 07, the Commission made an estimation of the amount of interest payable on the borrowed capital and non-tariff income from other sources for Rs. 21.76 lakh and 225.00 lakh respectively and considers to keep those provisionally at that level for the year 2007 08 also. 6.13.3 Summarizing our findings above, the revenue requirement in regard to SHRELCOP for the year 2007 08 are admitted as under: Sl No Particulars Rs. in lakh
Estimated Expenditure for 2006 07 (as submitted) i) ii) iii) iv) v) vi) Employees cost Repairs & Maintenance Rent, Rates & Taxes Legal Charges Audit Fees Other Administration & General expenses Total
203.67 130.15 0.68 1.58 0.18 51.93 388.19

83
Add: Average 5% increase for the year 2007 08 Total vii) viii) Interest on loan capital Depreciation Gross Revenue Required Less: Income from other sources Net Revenue Required
19.41 407.60 21.76 46.69 476.05 225.00 251.05
WBSEDCL is, however, to ensure that scheduled loan repayment obligations of SHRELCOP are met out of the amount of depreciation allowed. 6.13.4 The Commission has carefully taken notes of the different points raised by some of the objectors to the tariff proposals of WBSEDCL in regard to SHRELCOP. The Commission is to make it clear that the reasonable amount of revenue expenses that are needed to be incurred by WBSEDCL as an administrator are only allowed to it in view of the fact that the income to be derived from sale of energy to the consumers of SHRELCOP has been merged with such income of WBSEDCL. No part of the liabilities of SHRELCOP prior to the date of appoint of the administrator has been considered to be built in the tariff of WBSEDCL. 6.14 Reserve for Unforeseen Exigencies The original cost of fixed assets at the beginning of the year 2007 08, as per the submission of WBSEDCL, is Rs. 68416.00 lakh for generation and 391415.00 lakh for distribution services. The provision for the reserve for unforeseen exigencies @ 0.25% works out to Rs. 171.04 lakh for generation and Rs. 978.54 lakh for distribution totaling to Rs. 1149.58 lakh. The Commission allows the same in terms of Tariff Regulations, 2007. The applicant was allowed
84
an amount of Rs. 1746.00 lakh towards such provision in the year 2006 07. With the admission of Rs. 1149.58 lakh for the year 2007 08, the total provision for such reserve for unforeseen exigencies comes to Rs. 2895.58 lakh and amount is less than the ceiling of 5% of the gross value of assets. As some of the objectors raised this issue, it is felt necessary to clarify that the amount of reserve is not a part of the return allowable to the licensee. In terms of the Tariff Regulations, 2007, the sums so appropriated need to be invested by the licensee prudently in securities which can only be drawn with prior approval of the Commission to take care of unforeseen exigencies. The income from the investment of funds in this regards are considered for making adjustment with the amount of ARR of the licensee 6.15 Special Allocation WBSEDCL has asked for special allocation on the following accounts: Rs. in Lakh (a) Part of the amount of short recovery of Dues from SHRELCOP (b) Release of the part of interest on borrowings Disallowed in 2004 - 05 (c) Release of the part of ARR withheld In 2004 05 Total 2273.00 3185.00 4973.20 10431.20
The Commission feels it prudent to clarify the position separately for each of the above items for which special allocations has been asked for in the year 2007 08. (a) Short Recovery of Dues from SHRELCOP An amount of Rs. 3014.00 lakh in total was the short recovery of revenue by erstwhile WBSEB from Singur Haripal Rural Electric Co-operative Society
Limited (SHRELCOP) for the years 2003-04, 2004-05 and 2005-06 by virtue of Commissions orders in this regard. The license of SHRELCOP, as a distributor, had been revoked and WBSEDCL, as the successor entity of WBSEB, is presently functioning as Administrator of the affairs of SHRELCOP. It has asked for a part of such short recovery of revenue to be considered to be compensated through tariff for the year 2007 08. In this regard, the Commission observes that the payment due to WBSEDCL, as a successor entity of erstwhile WBSEB, is a liability on the part of SHRELCOP and is to be accounted for as such by it in its books of accounts. The ability of SHRELCOP to discharge this liability has not been finally assessed. The Commission, therefore, does not consider allowing any part of the stated liability of SHRELCOP to be built in the tariff of WBSEDCL. The Commission has also taken note of the objections made by some of the objectors to the tariff proposal of WBSEDCL on this issue. (b) Release of the part of interest on borrowing disallowed in 2004 05 The Commission, while passing the tariff order for the year 2004 05, deducted an amount of Rs. 63996.00 lakh from the revenue requirements of erstwhile WBSEB towards excess interest allowed in the earlier years. Paragraph 15.3.6 of the Commissions combined tariff order dated 9th June 2004 for the year 2002 03, 2003 - 04 and 2004 05 may be referred to. WBSEDCL has asked for release of a part of the stated disallowed amount of interest. After examining the projected claims with due care, the Commission is of the considered opinion that the alleged short allowance of interest due to subsequent revision in the orders of the State Government, should not be released without further study of the financial implications of such revision in the rate of interest in capital accounts as well as in the revenue accounts. The particular loans from the State Government were meant for carrying out
86
capital construction works. The interest paid / payable on such loans requires to be capitalized till the time the concerned capital works are completed and capitalized. The interest on such loans is chargeable to revenue accounts only for the period after capitalization of the completed construction works. The particulars those are required for making a decision in this regard have not been submitted by WBSEDCL and the Commission does not admit for the present, any claims on account of alleged shortfall in the interest allowed in the earlier year. WBSEDCL is, however, advised to make a separate submission to the Commission with all necessary particulars providing the copies of relevant Government orders in this regard. It is also to be stated what portion of the interest paid / payable on the concerned loans from the State Government had been capitalized and what portion is chargeable to revenue account so as to enable the Commission to take appropriate decision in this regard at the time of next tariff revision. (c) Release of the part of ARR withheld in the Tariff Order dated 9th June 2004 of the Commission: An amount of Rs. 37298.00 lakh was withheld from the total amount of revenue requirement admitted by the Commission in the composite tariff order for erstwhile WBSEB dated 9th June 2004 for the years 2002 03, 2003 04 and 2004 05 pending the submission of certain clarification and information that were lacking in the tariff applications for the concerned years. Being satisfied with subsequent submission, the Commission admitted to release 1/3rd (one-third) of the referred withheld amount in the year 2006 07. Paragraph 15.3.14 of the tariff order dated 9th June 2004 and paragraph 7.12.5 of the tariff order dated 8 th May 2006 may be referred to in this regard. The balance amount left to be released was Rs. 24865.00. The Commission decides to release a further amount of Rs.100.00 crore in this year. The
87
balance of the withheld amount will be considered suitably for adjustment at the time of subsequent tariff revision. The Commission has carefully taken note of the observations made by some objectors in regard to release of this withheld part of the ARR admitted by the Commission in the year 2004 05. The entitlement of WBSEDCL as a successor of the erstwhile WBSEB to get back the withheld amount is beyond doubt. The Commission feels that early release of the referred amount without causing much tariff shock to the consumers is considered justified to the distribution licensee and beneficial for its consumers. The release of the amount will enable the licensee to avoid costly borrowings to that extent for incurrence of capital construction and operation cost and hence, ultimately benefits are to flow, to the consumers. 6.16 Returns
6.16.1 The entitlement of WBSEDCL for return on its equity base has been examined with reference to the balance sheet as on 31st March, 2006, as shown in the Schedule B to the West Bengal Power Sector Reforms Transfer Scheme, 2007, notified by the Government of West Bengal on 25 th January, 2007 and the projected / estimated data provided by the applicant in the prescribed from no. 1.18 of the instant application. The equity capital of WBSEDCL as on 31st March 2006, was shown for an amount of Rs. 1942.00 crore in the referred Schedule B. This amount of equity was in consideration of the transfer value of the net fixed assets of Rs. 2170.00 crores and the capital works-in-progress worth Rs. 2738.00 crores as on the same date. As data provided in regard to the value of the original cost of fixed assets in form 1.18, the additions in the original cost of fixed assets pertaining to Distribution & Hydel Undertakings have been estimated/projected for Rs. 134.00 crores and Rs. 3971.66 crores during the years 2006 07 and 2007 08 respectively totaling to Rs. 4106.26 crores. This amount of the estimated additions in the original cost of fixed assets after 31st
88
March 2006 needs to be reduced by the opening amount of the value of capital works-in-progress of Rs. 2738.00 crores considered in the transfer deeds as the equity support against that amount had already been included in the amount of opening equity of Rs. 1942.00 crores. The amount of returns allowable to WBSEDCL for the year 2007 08, thus, works out as under: Sl. No. (i) Particulars Equity as on 31.03.2006 (As per Schedule B to the referred notification of the Govt. of West Bengal) Subsequent additions to the original cost of fixed assets in: 2006 07 (Estimated) 2007 08 (projected) Less: Adjustment of the amount of capital works-in-progress as on 31.03.2006 as per Schedule B to the referred notification (iii) (iv) (v) (vi) Normative Equity addition [30% of (ii)] Equity at the end of 2007 08 [(i) + (iii)] Average equity for the year 2007 08 [(i) + (iv) / 2] Return on average equity @ 14% [on (v)] Amount in Rs.- Lakh Amount in Rs.- Lakh 194200.00
(ii)
13460.00 397166.00 410626.00
273800.00
136826.00 41048.00 235248.00 214724.00 30061.00
6.16.2 WBSEDCL is a newly incorporated entity to succeed the distribution of energy and hydro-generation business of erstwhile WBSEB. It is yet to come up with its independent audited accounts. The amount of returns as has been worked out
on the basis of estimations and projections may be required to be adjusted suitably as and when the first audited accounts of WBSEDCL will be made available to the Commission. Such adjustment, if so required, will be considered at the time of subsequent revision of tariff. 6.16.3 The Commission has carefully noted the observations made by some of the objectors in regard to the allowable returns on equity. Some of the objectors have questioned the justifications of increase in the amount of equity over the amount considered in Commissions tariff order for the year 2006 07. Some has worked out cash return to the applicant @ 22.3% adding the amount of depreciation to the return on equity and considered that rate abnormally high. The Commission wants to highlight that for considering the equity of the applicant, it has gone by the restructuring scheme notified by the Govt. of West Bengal and referred in earlier paragraph. It has been observed by the Commission that the amount of capital employed in business transferred to WBSEDCL was Rs. 6495.00 crore on 31 st March 2006 as against that the amount of equity was considered Rs. 1942.00 crore, coming to around 30% only which is at par with the other organizations in the power sector and is not to be considered high. Otherwise also, the increase in the equity base of a licensee goes ultimately in favour of the consumers by reduction in the cost of borrowed capital and at the same time enable the licensee to have a favourable rate in case of market borrowings. The observations made by some objectors on the high rate of cash return are also considered not proper. Depreciation means the expiration of the cost of fixed assets used during a period and adding up the amount of depreciation to the licensees returns (to work out the cash return) is not proper. Moreover, the average rate of depreciation in the case of WBSEDCL comes around 3% only and not 8.33% as considered by the objectors.
90
6.17
Income from Non-Tariff Sources The income from non-tariff sources, comprising of rental of meters and other apparatus, delayed payment surcharges, interest and investment income, etc. has been estimated Rs. 16805.24 lakh. The projected amount is considered to be logical and the Commission admits the same.
6.18
Amount Recoverable from Bulk Supply As referred in the statement of Energy Balance in the earlier chapter, the total quantum of bulk supply to other licensees in the State is 1598.19 MU. The rate at which such supply is to be charged works out to 255.00 paise per kWh and therefore, the revenue recoverable from such bulk supply has been worked out to Rs. 40753.85 lakh. In addition to that WBSEDCL is also to supply 43.69 MU to Sikkim @ 169 paise / kWh. The recoverable amount from Sikkim works out to 738.36 lakh. The total amount recoverable from bulk supply will come to Rs. 41492.21.
6.19
Share of Gains out of the Sale of Energy to Persons other than the Licensee and own Consumers Under the system of prospective tariff determination, the gains to be derived by the licensee from sale of energy to persons other than licensees and own consumers can not be precisely determined. The quantum of such sale as well as the price available for such sale will depend on the fluctuating demand and supply conditions in the market. The Commission, therefore stipulates that the amount towards share of gains by way to such sale as have been considered in this order will be subject to adjustment at the time of subsequent tariff revision when all the relevant actual audited data will be made available to the Commission.
91
The estimated quantum of sale of energy to persons other than the consumers and other licensees as per the statement of Energy Balance considered by the Commission in earlier chapter comes to 5229.72 MU. A part of the amount of benefits to be derived from such sale is required to be passed on to the consumers in terms of the Commissions Tariff Regulations, 2007. The Commission considers to pass on 90% of such benefits to the consumers and 10% to be retained by WBSEDCL. The amount works out as under: Rs. in Lakh (i) Revenue from such sale (@ of 348 paise / kWh) (ii) The cost of energy to the applicant at average rate of purchase i.e., 196.24 p/kWh (iii) Surplus [(i) (ii)] (iv) Consumers share [90% of (iii)] 6.20 181994.26 102628.03 79366.23 71429.61
Adjustment of Amounts received towards Unscheduled Interchange (UI) It has been observed by the Commission from the submission of WBSEDCL that erstwhile WBSEB earned the undernoted amounts from Unscheduled Interchange (UI) during financial years 2003 04, 2004 05 and 2005 06. Rs. in Lakh 2003 2004 2004 2005 2005 2006 Total 9774.23 14980.34 18847.41 43601.98
The schedule no. 5 of the audited accounts of erstwhile WBSEB may be referred to in this regard. Against this amount of total earning through UI, the Commission made the following adjustments in earlier years as detailed below:
92
i) Adjustment in the ARR for the year 2005-06 (vide paragraph 7.1 of order dated 31.03.2005 ii) Adjustment against power purchase Cost for the year 2006 07 (vide the Schedule of purchase under paragraph 5.3 of order dated 8.5.06)
9712.00
14700.00
Total
24412.00
The balance amount of Rs. 19189.98 lakh i.e. (43601.98 24412.00) is being considered for adjustment for ascertaining the ARR for the year 2007 08. 6.21 Transmission charges payable to WBSETCL. WBSEDCL has asked for a provision for an amount of Rs.41825.11 lakh towards transmission charges payable to the State Transmission Utility, i.e., West Bengal State Electricity transmission Company Ltd (WBSETCL). Based on the tariff applications 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.42342.70 lakh. The particulars will be available in the Commissions order dated 26.07.2007 in Case No: TP-34/07-08 in regard to WBSETCL for the year 2007-2008. The Commission accordingly allows a sum of Rs.42342.70 lakh payable by WBSEDCL to WBSETCL as transmission charges including handling and system operation charges in 2007-08.
93
CHAPTER - 7 REVENUE REQUIREMENT & AVERAGE COST OF SUPPLY

7.1 The analysis and admission of variable cost and Fixed Charges in the foregoing paragraphs now leads to drawing of the Statement of Revenue Requirements of WBSEDCL for the year 2007 2008 and also to working out the average cost of supply to its consumers: Sl. No. Particulars As per Petition Rs. in Lakh 87.00 420103.88 420190.88 41825.11 36954.32 9448.19 615.45 158.67 93.50 6646.22 14872.72 13005.00 3618.35 2186.93 7060.00 As found Admissible Rs. in Lakh 87.00 465184.33 465271.33
A. VARIABLE COST: 1 Fuel cost (For Diesel Generating Station) 2 Power Purchase Total Variable Cost (A): B. FIXED COST: Transmission charges payable to WBSETCL 3 (including handling & system operation charges etc.) 4 Employee Cost Repairs & Maintenance charges including cost of 5 consumables 6 Administration & General Expenses a) Rent, Rates and Taxes b) Legal Charges c) Auditors Fees d) Other Administrative and General Charges 7 Interest on borrowed capital 8 Interest on Bonds for Employees Terminal Benefits 9 Interest on Consumer's Security Deposit 10 Other Finance Charges 11 Interest on working capital
42342.70 36954.32 9440.22 80.52 90.32 93.50 6630.00 14873.00 13005.00 3618.35 1468.06 7060.00
94
Sl. No. 12 13 14 15 16. C 17 18 19
20 D. ADJUSTMENTS 21 Other Income (Non-Tariff) Expenses attributable to sales to persons other than 22 consumers and licensees & Sikkim 23 Revenue from sale to licensees and Sikkim 24 Benefits to be passed on to consumers 25 Adjustments of UI charges earned in earlier years. TOTAL: ADJUSTMENTS: Aggregate Revenue Requirement from sale of 26 energy to own consumers (20 D) 27 Sales to consumers (MU) 28 Average cost of supply (paise / kWh)
As per As found Petition Admissible Rs. in Lakh Rs. in Lakh 21761.00 Depreciation 21761.00 40.23 Write off of Intangible Assets 40.23 430.00 Provision for Bad Debt 430.00 251.05 Expenditures relating to SHRELCOP 495.69 238.38 Taxes 171.04 158376.65 Total Fixed Cost (B): 159382.42 RETURNS & APPROPRIATIONS: 30061.00 Returns 39148.00 1149.58 Reserve for Unforeseen Exigencies 1149.58 10000.00 Appropriation relating to earlier years 10431.20 41210.58 Total Returns and Appropriations (C): 50728.78 664858.56 Gross Revenue Requirement (A+B+C) 630302.06 Particulars 16805.24 92090.16 27137.00 76067.86 0.00 212100.26 418201.82 12896.00 324.29 16805.24 102628.03 41492.21 71429.61 19189.98 251545.07 413313.49 12896.00 320.49
Notes: Figures in the projections of WBSEDCL have been regrouped/ rearranged to maintain comparability.
95
CHAPTER - 8 TARIFF ORDER

8.1 The tariff schedule as applicable to the consumers of WBSEDCL in the year 2007-08 is given at Annexure A1 for LV and MV consumers under quarterly billing cycle, at Annexure A2 for LV and MV consumers under monthly billing cycle and at Annexure A3 for HV and EHV consumers. The Commission has reviewed the directives given to WBSEB in the tariff order for 2006-07 and compliance thereof by WBSEDCL and also decided to give certain directives to WBSEDCL on various matters. These are to be found at Annexure B. 8.2 The associated conditions of the tariff shall be as follow: 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 HV industrial consumers shall receive a voltage wise graded load factor rebate as per following table: LOAD FACTOR REBATE Range of Load Factor (LF) Above 55% Up to 60% Above 60% Up to 70% Above 70% Up to 75% Above 75% Up to 80% Above 80% Up to 90% Above 90% Up to 92% Above 92% 6.6/11 kV 3 paise / kWh 8 paise / kWh 15 paise / kWh 20 paise / kWh 25 paise / kWh 30 paise / kWh 35 paise / kWh Supply Voltage 33 kV 66 /132/ 220/ 400 kV 4 paise / kWh 5 paise / kWh 9 paise / kWh 10 paise / kWh 20 paise / kWh 22 paise / kWh 25 paise / kWh 30 paise / kWh 35 paise / kWh 40 paise / kWh 40 paise / kWh 45 paise / kWh 45 paise / kWh 50 paise / kWh
8.2.1 (a)
The above load factor rebate shall be applicable on 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 @ 35 paise / kWh on the total quantum of energy consumed in the billing period). (b) Load factor surcharge shall be levied on HV industrial and HV commercial consumers if the load factor falls below 30%. The surcharge amount for
the load factor less than 30% but equal to or above 25% shall be 5 paise / kWh for the amount of energy by which consumption falls short of energy corresponding to a load factor of 30%. The surcharge amount for the load factor below 25% shall be 30 paise / kWh and shall be applicable only for the amount of energy by which the consumption falls short of energy corresponding to a load factor of 25% but not less than the amount of surcharge that would have been payable for load factor at 25% computed @ 5 paise / kWh. (For example, a HV industrial or commercial consumer at 28% load factor shall be liable for paying a surcharge @ 5 paise / kWh on the quantum of energy to be consumed at 30% load factor minus total energy consumed in the billing period. Similarly, a HV industrial or commercial consumer at 24% load factor shall be liable for paying a surcharge @ 30 paise / kWh on the quantum of energy to be consumed at 25% load factor minus total energy consumed in the billing period but not less than the amount of surcharge that would have been payable for load factor at 25% computed @ 5 paise / kWh). 8.2.2 (a) Fixed Charge for LV and MV consumers and Demand charge for HV and EHV consumers shall be such as shown at Annexure-A1, Annexure-A2 and Annexure-A3 respectively.. Demand charge shall be levied on the basis of maximum demand recorded during the month or 75% of the contract demand whichever is higher subject to a minimum of 50 KVA. In case KW demand is recorded in place of KVA demand then the demand charge rate in KVA is to be determined by considering a power factor of 0.85. (b) In case the highest demand of any non-TOD HT consumer exceeds the contract demand in any month, the demand charge as mentioned in the tariff schedule shall apply on recorded highest demand for that month. In addition to this, additional demand charge in the case of such consumer
shall be 60% of demand charge on the quantum of demand by which the recorded highest demand exceeds the contract demand. Excess energy drawal corresponding to such excess demand shall be billed at applicable energy charge for such consumer. (c) In case the highest demand of any HT consumer under TOD tariff exceeds the contract demand in any month, the demand charge as mentioned in the tariff schedule shall apply on highest demand for that month. In addition, the demand of power in excess of sanctioned contract demand in any period of time shall attract the additional demand charge for the said excess demand for such consumer, and the same shall be calculated according to the following formulae: i) In case the highest demand during normal period exceeds the contract demand ADCED = 0.2 X (Dact Dcont) x DC ii) In case the highest demand during peak exceeds the contract demand ADCED = 0.5 X (Dact Dcont) x DC iii) In case the highest demand during off-peak period exceeds the contract demand When D act > Dcont and D act 1.3 x D cont ADCED = 0.01 X (Dact Dcont) x DC When D act > 1.3 x Dcont and Dact 1.5 x Dcont ADCED = [0.01 X 0.3 x Dcont + 0.1 x (Dact 1.3 x Dcont)] x DC When D act > 1.5 x Dcont ADCED = [0.01X0.3xD cont + 0.1x0.2xDcont + 0.2 x (Dact1.5xDcont )] x DC iv) In the formulae (i), (ii) and (iii) mentioned above, the abbreviations have the meanings as given below:
ADCED
Additional Demand Charge for demand of power in excess of sanctioned contract demand during billing period.
Dact
Actual highest demand of power in respective time period.
Dcont DC
= =
Sanctioned Contract Demand of the consumer. Rate of Demand Charge as per this tariff order for the relevant category of consumer.
v)
In case demand of power exceeds sanctioned contract demand in more than one time period, computation of Additional Demand Charge (ADCED) shall be done for each such time period and the highest among such computed additional demand charge for different periods shall be chargeable.
vi) Excess energy drawal corresponding to any excess demand shall be billed at the applicable energy charge for such consumer. (d) The demand charge shall not be payable by any consumer for that period when load of the consumer is totally shed / interrupted because of any fault of WBSEDCL or its system. Such exemption from demand charge shall not be available if the interruption is caused by grid failure or automatic under-frequency relay tripping or any force majeure issues not related to WBSEDCL or due to disconnection of supply for any fault on the part of the consumer. This is, however, without any prejudice to any other compensation if the consumer is entitled to such compensation because of applicability of any other law for the time being in force or the Electricity Act 2003 or the Regulations made thereunder.
99
(e)
For LV and MV consumers, the fixed charge in terms of per KVA/month shall be based on contract demand or sanctioned load. In case where no consumption of energy has taken place for any reasons including disconnection of supply the fixed charge shall be calculated on the basis of the contract demand or sanctioned load. For billing for any fraction of a month caused due to discontinuance of consumership, the computation of fixed charge shall be made for the entire month. In case where KVA is not available, it can be converted from kW considering 0.85 as power factor.
8.2.2.1
Minimum charges excluding meter rent, taxes, levies etc. and arrears shall be as follows: Category of Consumers (i) LV & MV Domestic (Rural) (ii) LV & MV Domestic (Urban) (iii) Domestic HV Minimum charge Rs. 28/- per month Rs. 28/- per month Rs. 400/- per month per KW of sanctioned load
The minimum charge shall be applicable when the sum of the energy charge and demand charge or fixed charge, if any, including rebate and surcharge, if any, is less than the minimum charge. 8.2.2.2 The rate of energy charge applicable for temporary supply related to events, festivals, marriage ceremony shall be at the highest rate of supply under nonTOD tariff scheme applicable to that particular category of consumers to which the applicant seeking such supply belongs. For such temporary supply, the fixed / demand charge shall be the fixed / demand charge under nonTOD tariff applicable to that particular category of consumers to which the applicant seeking such supply belongs. Such temporary supply shall not have any load factor rebate and power factor rebate and shall not be entitled
to TOD tariff. However, other charges for such temporary supply shall be the same as are applicable to that particular category of consumers to which the applicant seeking such temporary supply belongs. If there is no appropriate rate given in the tariff schedule for such temporary supply, the rate for such temporary supply shall be @ Rs.5.00 / kWh. For such temporary supply, the applicant shall apply to the licensee at least 10 days in advance. 8.2.2.3 Rebate for Cold Storage plant meant exclusively for storing fish, sea food, potato and perishable vegetable covered under rate S (f-pi) and rate S(ft-pi) shall be 7% of the energy charge provided the payment is made within due date. 8.2.2.4 For street lighting and public water works, a rebate of 15 paise /Kwh on energy charge will be given if payment is made within due date in case of normal or normal-TOD meter only. It will not apply to such supply having prepaid meter. 8.2.2.5 Rebate for timely payment to all consumers excluding those covered by paragraphs 8.2.2.3 and 8.2.2.4 above or pre-paid meter shall be 2% of the amount of the bills excluding meter rent, taxes, duties, levies and arrears. 8.2.2.6 For industrial supply, rebates for 33 KV and 66 KV supply shall be at 3% of the energy charge and the rebate for 132 KV supply shall be at 7% of the energy charge. For 220 KV and 400 KV supply in industry, rebate shall be 9% of the energy charge. This rebate will be given before giving effect to rebate mentioned in paragraph 8.2.2.5. 8.2.2.7 Additional rebate of 5 paise per kWh on energy charge will be allowed to an EHV industrial consumer whose contract demand is 25 MVA or above and whose load factor is not less than 75% in the billing period and whose recorded maximum demand during billing period is not less than 80% of the
contract demand subject to the condition that the payment is made within the due date. This rebate is in addition to the rebates under paragraphs 8.2.1, 8.2.2.5 and 8.2.2.6. This rebate will be given before giving effect to rebate mentioned in paragraphs 8.2.2.5 and. 8.2.2.6. 8.2.2.8 Additional rebate of 5 paise per unit on energy charge will be given to domestic and commercial consumers under LV and MV categories covered by quarterly billing system under normal or normal-TOD tariff scheme if payment is made for the quarter at a time within due date stipulated for first month of the quarter. This rebate will be in addition to rebate under paragraph 8.2.2.5 for normal meter or normal TOD meter and will be given after giving the effect of rebate under paragraph 8.2.2.5. 8.2.2.9 Un-metered agricultural / irrigation consumers may make monthly payment for which they shall be entitled to 2% rebate for timely payment within due date in line with the consumers of other categories as mentioned in paragraph 8.2.2.5. In case, however, such agricultural/ irrigation consumers opt for advance payment of the full annual amount, the consumers shall be allowed a rebate of 5% in addition to 2% rebate mentioned in paragraph 8.2.2.5 and this additional rebate of 5% will be given effect after giving effect to rebate under paragraph 8.2.2.5. 8.2.2.10 The power factor rebate and surcharge shall continue at the same rates for those categories of consumers to whom these are applicable at present. The methods of calculation of such rebate and surcharge shall also continue to be the same as given in the tariff order of WBSEB for 2006-07. The rebate and surcharge against different time periods shall be reflected in the bill separately and shall be treated separately. 8.2.2.11 For short term supply, emergency supply and for supply of construction power, there shall be no rebate or surcharge for load factor and power factor.
8.2.2.12
For pre-paid tariff scheme with pre-paid meter a discount of 2.75%
on
energy charge will be allowed except for public water works, commercial and domestic consumers under LV under MV categories. For public water-works, a special discount of 16 paisa/Kwh on energy charge will be given in case the supply is under pre-paid tariff scheme through prepaid meter. For commercial and domestic consumers under LV and MV categories having pre-paid tariff scheme through prepaid meter, a special discount of 4.75% on energy charge will be given. 8.2.2.13 Delayed payment surcharge on due amount shall be 1.25% per month of the delay in payment or pro-rated for part thereof up to 3 months of delay, at 1.5% per month of delay or pro-rated for part thereof for any period beyond 3 months of delay but up to the next 3 months and at 2% per month of delay or pro-rated for part thereof beyond first 6 months of delay. Delay in payment shall be counted from the due date for payment. This delayed payment surcharge is without prejudice to the provisions under the Electricity Act 2003 and the Regulations made thereunder. 8.2.2.14 Dairy with chilling plant will be under the category of consumers of cold storage for non perishable items. 8.2.2.15 For irrigation tariff under Rate-C(b), North Bengal stands for the districts of Coochbehar, Jalpaiguri, Darjeeling, North Dinajpur, South Dinajpur and Malda. 8.2.3 All existing charges relating to meter rent, meter testing, meter replacement, etc., shall continue except for the following for which the charges are given below: i) Meter rent for LT Pre-paid Meter for Domestic and Commercial categories.
103
Single Phase Three Phase ii)
Rs. 15 per month per meter Rs. 30 per month per meter
The consumer opting for pre-paid meter shall not be required to furnish any security deposit for the energy charge.
iii)
No meter rent and security deposit for meter shall be applicable if the meter is supplied by the consumer.
8.2.4
All statutory levies like Electricity Duty or any other taxes, duties etc. imposed by the State Govt. / Central Govt. or any other competent authority shall be extra and shall not be a part of the tariff as determined under this tariff order.
8.2.5
This tariff shall be applicable from the billing month of / pertaining to April, 2007 and onwards. Adjustments, if any, shall be made in the bills for the months of October and November 2007. If any technological intervention is required by WBSEDCL due to change in peak and off-peak period time under TOD scheme, then that shall be done within September, 2007.
8.2.6
In addition to the tariff determined under this tariff order, WBSEDCL would be further entitled to additional sums towards enhanced cost of fuel and power purchase, if any, after the date from which this tariff order takes effect. The fuel and power purchase cost shall be subject to adjustment according to West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2007 and as per Fuel and Power Purchase Cost Adjustment (FPPCA) formula as given in Schedule 7 of the said regulations.
8.2.7
a)
Introduction of an optional TOD tariff scheme for LT Commercial, LT Industrial and LT Public Water Works categories of consumers which was directed in the tariff order for 2006-07 shall be extended additionally to cover such consumers also having a minimum load of 30 KVA .
104
b) For LT industrial and LT commercial consumers, opting for TOD tariff, the total energy charge shall be determined as per the tariff rate given in this order. c) For any pre-paid and TOD tariff scheme other charges shall be the charges applicable to consumers under respective category of non-TOD tariff. 8.2.8 An applicant for short term supplies through pre-paid meter shall have to comply with all necessary formalities for obtaining supply including payment in accordance with the Regulations made by the Commissions. The same will be subject to the following conditions:a) b) provision of requisite meter security deposit, to be kept with the licensee; provision of space for installing weather-proof, safe and secure terminal services apparatus to protect sophisticated meter; and c) 8.2.9 availability of prepaid-meter of appropriate capacity.
All billing parameters of a bill shall be construed for a billing period only, which has been specified by the Commission, irrespective of the date on which the meter reading is taken in accordance with Commission. any regulation made by the
8.2.10
Any optional tariff scheme for pre-paid meters will be subject to availability of vending centres for the present. However, for a consumer for whom pre-paid meter is mandatory but vending machine is not available, pre-denominated pre-paid facility shall be extended. This pre-denominated pre-paid facility for optional tariff scheme for pre-paid meters may be also extended to those areas where vending machines are not available.
8.2.11
An existing consumer may switchover to a new category of consumers with effect from any date after 30.9.2007.For that purpose such existing consumer
105
shall apply to the licensee for such conversion at least sixty days in advance with necessary documents. 8.2.12 Consumers who have only the pre-paid tariff scheme as applicable tariff scheme shall be allowed to have an alternative normal tariff scheme at the same rates as applicable for the prepaid tariff scheme in case of nonavailability of pre-paid meters till such time such pre-paid meters are available. 8.2.13 The tariffs determined under this order for different categories of consumers are the maximum ceilings for supply of electricity at any agreed price to the consumers for those areas of supply of WBSEDCL only where multiple licensees exist. However, if supply is effected to a consumer at a price lesser than the upper ceiling, and as a result the licensee incurs loss , such loss shall not be allowed to be passed on to any other consumers or any other distribution licensees of the Commission. 8.2.14 The purchase price of electricity by WBSEDCL from different agencies shall be as per Annexure A4. 8.2.15 A new category of consumers named as Lifeline(Domestic) has been introduced subject to the condition that such category of consumers shall have metered supply and sanctioned domestic load of 0.3 KW. In case the
sanctioned load in KW is not available, it can be converted from KVA considering 0.85 as power factor. If the quarterly consumption of any such consumer exceeds 75 Kwh, then he will fall in the category of domestic (rural) consumers or domestic (urban) consumers as the case may be for that billing period. 8.2.16 PLF for any plant may be adjusted downward against enhanced performance of any other plant of WBSEDCL that registers generation above the target PLF for the purpose of recovery of fixed cost. The plant whose enhanced
performance will meet the shortfall in PLF of any other plant of WBSEDCL, shall be paid energy charge at the rate applicable to it as per this tariff order. 8.3 It is open to the State Government to grant any subsidy to any consumer or any class of consumers in the tariff determined by the Commission for WBSEDCL. If at all any such subsidy under the provisions of the Act is intimated to WBSEDCL and to the Commission by the Government of West Bengal with clear indication of the consumer or class of consumers to be subsidized and the amount of the subsidy proposed to be given is paid in advance and in cash, the tariff of such consumer and / or the class of consumers shall be deemed to have been reduced accordingly as has been indicated by the State Government. However, such direction of the State Government shall not be operative till the payment is made by the State Government in accordance with the provisions of the Act and the Regulations made thereunder, and the tariff as fixed by the Commission shall remain applicable. In terms of the West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2007, the State Government is required to communicate within 15 days from the date of receipt of a tariff order, whether it shall give any subsidy to any group of consumers etc. 8.4 WBSEDCL shall present to the Commission a gist of this order along with the names of at least four leading dailies (at least one of which shall be in English, one in Hindi and the rest in Bengali) within three working days from the date of receipt of this order for approval of the Commission and on receipt of the approval shall publish the approved gist in those newspapers within four days from the date of receipt of the approval of the Commission.
107
Tariff Order of WBSEDCL for 2007-08 Annexure A1
LOW AND MEDIUM VOLTAGE CONSUMERS Optional tariff Scheme Optional Tariff Scheme I
Energy Charge P/kWh Fixed Charge Consumer category Name of the Tariff Scheme Quarterly consumption in KWH Energy Charge P/kWh
Applicable Tariff Scheme

Sl No Type of Consumer Consumer category Name of the Tariff Quarterly consumption in Scheme KWH
Optional Tariff Scheme - II

Fixed Charge Consumer category Name of the Quarterly consumption Tariff Scheme in KWH Energy Charge P/kWh Fixed Charge
1.
Life Line (Domestic )
Rate A(Dm-LL)
Normal
0 to 75 First Next Next Next Above First Next Next Next Next Above First Next Next Next Above First Next Next Next Above 75 105 120 600 900 75 75 150 150 450 900 180 120 150 450 900 180 120 150 450 900
206 209 232 284 327 572 214 242 289 334 354 572 282 399 425 465 550 287 404 425 465 550
Nil
NOT APPLICABLE
NOT APPLICABLE
2.
Domestic (Rural)
Rate A(Dm-R)
Normal
Nil
Rate A(Dm-R)pp
Prepaid
3.
Domestic (Urban)
Rate A(Dm-U)
Normal
Nil
Rate A(Dm-U)pp
Prepaid
4.
Commercial (Rural)
Rate A(Cm-R)
Normal
Rs 5/- per consumer/ month
Rate A(Cm-R)t
Normal TOD
5.
Commercial (Urban)
Rate A(Cm-U)
Normal
Rs 5/- per consumer/ month
First Next Next Next Above First Next Next Next Next Above 06.00 hrs to 17.00 hrs 17.00 hrs to 23.00 hrs. 23.00 hrs to 06.00 hrs. 06.00 hrs to 17.00 hrs
75 105 120 600 900 75 75 150 150 450 900 All units All units All units All units
209 232 284 327 572 214 242 289 334 354 572 390 429 363 390 429 363
Nil
NOT APPLICABLE
Nil
NOT APPLICABLE
06.00 hrs to 17.00 hrs All units Rs 5/- per consumer/ month Rate A(Cm-R)tpp
Prepaid- TOD 17.00 hrs to 23.00 hrs. All units
390 429 363 390 429 363

Rs 5/- per consumer / month Rs 5/- per consumer / month
23.00 hrs to 06.00 hrs. All units 06.00 hrs to 17.00 hrs All units Rs 5/- per consumer/ month Rate A(Cm-U)tpp
Prepaid - TOD 17.00 hrs to 23.00 hrs. All units
Rate A(Cm-U)t
Normal TOD
17.00 hrs to 23.00 All hrs. units 23.00 hrs to 06.00 All hrs. units
23.00 hrs to 06.00 hrs. All units
108
LOW AND MEDIUM VOLTAGE CONSUMERS Applicable Tariff Scheme

Sl No Type of Consumer Consumer category Name of the Tariff Quarterly consumption in Scheme KWH Energy Charge P/kWh Fixed Charge Consumer category
Optional tariff Scheme Optional Tariff Scheme I

Name of the Tariff Scheme Quarterly consumption in KWH Energy Charge P/kWh

Fixed Charge Consumer category Name of the Quarterly consumption Tariff Scheme in KWH Energy Charge P/kWh Fixed Charge
6.
Public utility/ Specified Institution Public Bodies
Rate A(Cm-PU) (Mun)
Normal
On all Units
285
Nil
Rate A(Cm-PU) (Mun) pp
Prepaid
On all Units
285
Nil
In Municipal Area
7.
Public utility/ Specified Institution Public Bodies
Rate A(Cm-PU) (Non-Mun)
Normal
On all Units
275
Nil
Rate A(Cm-PU) (Non-Mun) pp
Prepaid
On all Units
275
Nil
In Non Municipal Area Cottage Industry / Artisan / Weavers / Small production oriented establishment in Non Municipal area &not run by electricity as motive power Poultry, Duckery, Horticulture, Tissue culture, Floriculture, Herbal Medicinal Biodiesel Plant Farming, Food Processing Unit First Rate A(Cm-II) Normal Next above First Above Rate A(Cm-III) Normal 300 300 600 900 900
On all units On all 23.00 hrs to 06.00 hrs units 06.00 hrs. 17.00 hrs. On all & 20.00 hrs - 23.00 units hrs. Rate A(Cm-PU) Prepaid - TOD On all 17.00 hrs to 20.00 hrs. (Non-Mun) ppt units On all 23.00 hrs to 06.00 hrs units 17.00 hrs to 20.00 hrs.
Rate A(Cm-PU) (Mun) ppt
06.00 hrs. 17.00 hrs. On all & 20.00 hrs - 23.00 units hrs.
Prepaid - TOD
283 311 263 273 300 254

Nil Nil
247 380 414 360 465

Rs 5/- per consumer /month Rate A(Cm-II) ppt
Prepaid - TOD
06.00 hrs to 17.00 All hrs units 17.00 hrs to 23.00 All hrs. units 23.00 hrs to 06.00 All hrs. units 06.00 hrs to 17.00 All hrs units Rs 5/- per consumer /month Rate A(Cm-III) ppt
Prepaid - TOD
350 385 326 355 390 330

Rs 5/- per consumer /month
NOT APPLICABLE
8.
Rs 5/- per consumer /month
NOT APPLICABLE
9.
17.00 hrs to 23.00 All hrs. units 23.00 hrs to 06.00 All hrs. units
109
Energy Charge P/kWh Fixed Charge Consumer category Name of the Tariff Scheme Monthly consumption in KWH Energy Charge P/kWh Rs. 28 per consumer per month

Sl No Type of Consumer Consumer category Name of the Tariff Scheme Monthly consumption in KWH

Fixed Charge Consumer category Name of the Monthly consumption in Tariff Scheme KWH Energy Charge P/kWh
1.
Lokdeep / Kutirjyoti Labour Line (Domestic )
Rate A(Dm-K) Rate A(Dm-L)
Normal
0 to 25
NOT APPLICABLE
NOT APPLICABLE
2.
Normal
All units 06.00 hrs to All units 17.00 hrs 17.00 hrs to All units 23.00 hrs. 23.00 hrs to All units 06.00 hrs
242
137 475 75 Nil Rate C(t)ppt
NOT APPLICABLE
NOT APPLICABLE
3.
Irrigation pumping for Agriculture (Metered)
Rate C(t)
Normal TOD
06.00 hrs to 17.00 All units hrs 17.00 hrs to 23.00 All units Prepaid - TOD hrs. 23.00 hrs to 06.00 All units hrs
137 475 75 Nil

NOT APPLICABLE
4.
Irrigation pumping for Agriculture (Metered supply from mixed HV feeder )
Rate C(a)
Normal
All units
150
Nil
NOT APPLICABLE
NOT APPLICABLE
STW in NB
Rs 6750/ consumer/ annum Rs 8800/ consumer/ annum Rs 8000/ consumer/ annum Rs 10800/ consumer/ annum
NOT APPLICABLE NOT APPLICABLE
STW in Other District 5. Irrigation pumping for Agriculture (Un-Metered) Rate C(b)
Normal
Submersible in NB
Submersible in Other District
110
Energy Charge P/kWh Fixed Charge Consumer category Name of the Tariff Scheme Monthly consumption in KWH Energy Charge P/kWh


06.00 hrs to All units 17.00 hrs 6. Commercial Plantation Rate A(Cm) - CP
Prepaid- TOD
375 475 349 170 500 100 390 525 363 400 440 372 Rs 12/- per kva per month
17.00 hrs to All units 23.00 hrs. 23.00 hrs to All units 06.00 hrs 06.00 hrs to All units 17.00 hrs
Rs 10/- per kva per month
NOT APPLICABLE
NOT APPLICABLE
7.
Short Term Irrigation Supply
Rate C(t) - STIS
Prepaid- TOD
NOT APPLICABLE
NOT APPLICABLE
8.
Short Term supply for Commercial Plantation
Rate A(Cm)-STCP
Prepaid- TOD
NOT APPLICABLE
NOT APPLICABLE
9.
Short-term Supply
Rate A(ST)
Prepaid - TOD
17.00 hrs to All units 23.00 hrs. 23.00 hrs to All units 06.00 hrs
111


06.00 hrs. 17.00 All hrs. & 20.00 hrs Units 23.00 hrs. 10. Public Water Works & Sewerage System Rate B (II)
Normal
268
On all Units
273
Nil
Rate B(II) tpp
Prepaid - TOD
17.00 hrs to 20.00 All hrs. Units 23.00 hrs to 06.00 All hrs Units
402
Nil
NOT APPLICABLE
185 375 525 248 390 546 257

NOT APPLICABLE
First 11. Industry (Rural) Rate B(I-R)

Normal
500 1500 2000 500 1500 3500
279 391 412 294 406 432 233 Nil Rs 12/- per Rate KVA per month U) t Rs 12/- per KVA per month Rate B(I-R) t
Next Above First
12.
Industry (Urban)
Rate B(I-U)
Normal
Next Above
06.00 hrs to 17.00 hrs 17.00 hrs to 23.00 Normal - TOD hrs 23.00 hrs to 06.00 hrs 06.00 hrs to 17.00 hrs B(INormal - TOD 17.00 hrs to 23.00 hrs 23.00 hrs to 06.00 hrs
NOT APPLICABLE
All Units All Units All Units All Units All Units All Units
Rs 12/- per KVA per month
NOT APPLICABLE
NOT APPLICABLE
13.
Street Lighting
Rate D(1)
Normal
On all Units
14.
Private Educational Institutions and Hospitals
Rate D(4)
Normal
On all Units
375
Rate D(4) t
06.00 hrs to 17.00 On all hrs & 20.00 hrs to Units 23.00 hrs
Normal - TOD
373 Rs 10/- per KVA per month

NOT APPLICABLE
17.00 hrs to 20.00 On all hrs Units 23.00 hrs to 06.00 On all hrs Units
410 347
112


06.00 hrs to 17.00 hrs 15. Emergency Rate D(5)

Prepaid- TOD
On all Units On all Units On all Units On all Units On all Units On all Units
450 675 311 Nil

17.00 hrs to 23.00 hrs 23.00 hrs to 06.00 hrs 06.00 hrs. 17.00 hrs. & 20 .00 hrs to 23.00 hrs
390 Rs 10/- per kva per month

16.
Construction Power Supply
Rate D(6)
Prepaid-TOD
17.00 hrs to 20.00 hrs. 23.00 hrs to 06.00 hrs
575 257
Bulk Supply at single point to Co-operative Group Housing Society for providing power 17. to its members or person for providing power to its employees in a single premises
06.00 hrs to 17.00 On all hrs Units Rate D(7) Normal All units 300 Nil Rate D(7)t
Normal - TOD
298
17.00 hrs to 23.00 On all hrs Units 23.00 hrs to 06.00 On all hrs Units
328
Nil
NOT APPLICABLE
277
18.
Common Services of Industrial Estate
Rate D(8)
Prepaid - TOD
06.00 hrs. 17.00 hrs. & 20 .00 hrs to 23.00 hrs 17.00 hrs to 20.00 hrs. 23.00 hrs to 06.00 hrs
On all Units On all Units On all Units
360 Rs 12/- per KVA per month

505 238
113
Fixed Charge
114
Fixed Charge
115
Fixed Charge
116
Fixed Charge
117
HIGH & EXTRA HIGH VOLTAGE CONSUMERS

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) 06.00 hrs17.00 hrs & 20.00 hrs23.00 hrs 17.00 hrs20.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs & 20.00 hrs23.00 hrs 17.00 hrs20.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs All Units Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer Monsoon Winter (Rs./ KVA/ month) Demand Charge
P/kWh Summer Monsoon Winter
All Units
263
261
259 200
Public Utility (11 KV)
Rate E(a)
Normal
All Units
266
264
262
200
Rate E(at)
Normal TOD
All Units All Units
399 181
396 180
393 179
262
260
258 200
Public Utility (33 KV)
Rate F(a)
Normal
All Units
265
263
261
200
Rate F(at)
Normal TOD
All Units All Units All Units All Units
397 181 366 549 253 345 518 238
394 179 365 548 252 343 515 237
391 178 364 546 251 341 512 235 200 200
Industries (11 KV)
Rate E(b)
Normal
All Units
367
366
365
200
Rate E(bt)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs
All Units All Units All Units All Units
Industries (33 KV)
Rate F(b)
Normal
All Units
347
345
343
200
Rate F(bt)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
114

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) 06.00 hrs17.00 hrs All Units All Units All Units All Units All Units All Units All Units All Units All Units Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer Monsoon Winter (Rs./ KVA/ month) Demand Charge
330 495 228 322 483 222 320 448 211
328 492 226 320 480 221 318 445 210
326 489 225 318 477 219 316 442 209 200 200 200
Industries (132 KV)
Rate H(b)
Normal
All Units
332
330
328
200
Rate H(bt)
Normal TOD
Industries (220KV)
Rate I(b)
Normal
All Units
327
325
323
200
Rate I(bt)
Normal TOD
Industries (400 KV)
Rate J(b)
Normal
All Units
325
323
321
200
Rate J(bt)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
Community Irrigation/ Irrigation
Rate S(gt)
Normal TOD
06.00 hrs17.00 hrs 17.00 hrs23.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs
326 489 163 380 532 251
324 486 162 376 526 248
325 488 163 378 529 249 200

NOT APPLICABLE
Nil
NOT APPLICABLE
Commercial Plantation
Rate S(cpt)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
115

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer Monsoon Winter (Rs./ KVA/ month) Demand Charge
P/kWh Summer 06.00 hrs17.00 hrs All Units All Units All Units All Units All Units All Units Monsoon Winter
345 483 228 390 546 257
341 477 225 386 540 255
343 480 226 388 543 256

06.00 hrs17.00 hrs All Units All Units All Units All Units All Units All Units
10
Short Term Irrigation Supply
Rate S(gt-st)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs 17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
Nil
NOT APPLICABLE
11
Short Term Supply for Commercial Plantation
Rate S(cpt-st)
Normal TOD
200
NOT APPLICABLE
388 582 268 370 555 255
386 579 266 369 554 255
384 576 265 368 552 254 200 200
12
Commercial (11 KV)
Rate E( c )
Normal
All Units
390
388
386
200
Rate E( ct )
Normal TOD
13
Commercial (33 KV)
Rate F( c )
Normal
All Units
371
370
369
200
Rate F(ct)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
116

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) 06.00 hrs17.00 hrs All Units All Units All Units All Units All Units All Units Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer Monsoon Winter (Rs./ KVA/ month) Demand Charge
348 487 230 359 395 334
346 484 228 357 393 332
344 482 227 355 391 331 Nil 200
14
Commercial (132 KV)
Rate H(c)
Normal
All Units
350
348
346
200
Rate H(ct)
Normal TOD
15
Domestic
Rate S(d)
Normal
All Units
361
359
357
Nil
Rate S(dt)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
16
Public Water Works & Sewerage (11 KV)
Rate E (pw)
Normal
All Units
266
264
262
200
Rate E(pwt)
Normal TOD
06.00 hrs17.00 hrs & All Units 20.00 hrs23.00 hrs 17.00 hrs20.00 hrs All Units 23.00 hrsAll Units 06.00 hrs 06.00 hrs17.00 hrs & & All Units
263
261
259 200
399 181
396 180
393 179
262
260
258 200
17
Public Water Works & Sewerage (33 KV)
Rate F(pw)
Normal
All Units
265
263
261
200
Rate F(pwt)
Normal TOD
20.00 hrs23.00 hrs 17.00 hrs20.00 hrs 23.00 hrs06.00 hrs All Units All Units
397 181
394 179
391 178
117

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer Monsoon Winter (Rs./ KVA/ month) Demand Charge
P/kWh Summer Sports Complex & Auditorium run by Govt./ local bodies 18 for cultural affairs Monsoon Winter
Rate S(c )
Normal
All Units
369
368
366
Nil
NOT APPLICABLE
19
Cold storage for perishable items (11 KV)
Rate S(f-pi)
Normal
All Units
257
256
255
200
Rate S(ft-pi)
Normal TOD
06.00 hrs17.00 hrs 17.00 hrs23.00 hrs 23.00 hrs06.00 hrs 06.00 hrs17.00 hrs
255 357 168 255 357 168
254 356 168 254 356 168
253 354 167 253 354 167 200 200
Cold storage for non perishable 20 items & Dairies with Chilling Plant (11 KV)
Rate S(f)
Normal
All Units
257
256
255
200
Rate S(ft)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
06.00 hrsAll Units 17.00 hrs
375 525 248 380
373 522 246 378
371 519 245 376 200

NOT APPLICABLE
21
Emergency Supply
Rate S(es)
NormalTOD
17.00 hrs23.00 hrs All Units 23.00 hrsAll Units 06.00 hrs 06.00 hrs17.00 hrs & All Units 20.00 hrs.23.00 hrs 17.00 hrsAll Units 20.00 hrs 23.00 hrs06.00 hrs All Units
200
NOT APPLICABLE
22
Construction Power Supply
Rate S(con)
NormalTOD
532 251
529 249
526 248
118

Sl Type of Consumer No Consumer category Name of the Tariff Scheme Applicable Tariff Scheme Consumption per month in KWH Energy Charge Demand Charge (Rs./ KVA/ month) Consumer category Name of the Tariff Scheme Optional Tariff Scheme Consumption per month in KWH Energy Charge P/kWh Summer 06.00 hrs17.00 hrs Normal TOD 17.00 hrs23.00 hrs 23.00 hrs06.00 hrs Monsoon Winter (Rs./ KVA/ month) Demand Charge
P/kWh Summer
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
Monsoon
Winter
All Units All Units
349 384
347 382
345 380 Nil
23
Rate S(co)
Normal
All Units
351
349
347
Nil
Rate S(cot)
All Units
325
323
321
Common Services of Industrial 24 Estate
Rate E (ct-cs)
Normal TOD
06.00 hrs17.00 hrs & All Units 20.00 hrs.23.00 hrs 17.00 hrs20.00 hrs 23.00 hrs06.00 hrs All Units All Units
365
363
361 200
NOT APPLICABLE
511 241 345 315 340 374 316
508 240 343 313 338 372 314
505 238 340 310 336 370 312

06.00 hrs17.00 hrs All Units
25 26
Traction KV) Traction KV)
(25 (132
Rate T (a) Rate T (b)
Normal Normal
All Units All Units 06.00 hrs17.00 hrs All Units
200 200
27 Short-term Supply Rate S(st)
Normal - 17.00 hrsTOD 23.00 hrs

23.00 hrs06.00 hrs
All Units All Units
200
NOT APPLICABLE
380 418 353
378 416 352
376 414 350 200
28
Private Educational Institutions
Rate E (c-ei)
Normal
All Units
382
380
378
200
Rate E (ct-ei)
Normal TOD
17.00 hrs23.00 hrs 23.00 hrs06.00 hrs
All Units
All Units
119
ANNEXUREA4
POWER PURCHASE PRICE DETAIL BY WBSEDCL FROM DIFFERENT SOURCES

Sl POWER PURCHAE SOURCES No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 WEST BENGAL RENEWABLE ENERGY DEVELOPMENT AGENCY DAMODAR VALLEY CORPOARTION -132 KV DAMODAR VALLEY CORPOARTION -33 KV DAMODAR VALLEY CORPOARTION -11 KV DAMODAR VALLEY CORPOARTION- Peak power for 6 hours daily CHUKHA HYDRO POWER STATION FROM BHUTAN KURICHHU HYDRO POWER STATION FROM BHUTAN TALA HYDRO POWER ST ATION FROM BHUTAN RANGEET OF NATIONAL HYDRO POWER CORPORATION FARRAKA STPS OF NATIONAL THERMAL POWER CORPORATION KAHELGAON STPS OF NATIONAL THERMAL POWER CORPORATION TALCHER STPS OF NATIONAL THERMAL POWER CORPORATION DIFFERENT TRADERS RANGPOO OF SIKKIM ELECTRO STEEL CESC IN RADIAL MODE
PRICE IN PAISA / UNIT

250.00 304.93 304.93 304.93 329.93 160.14 160.14 184.00 199.40 168.43 168.43 168.43 486.00 372.00 253.00 266.06
17 HOOGHLY METCOCK 186.03 Note: The price of purchase from sl no. 1 to 13 is subject to changes as per actual in accordance with law.
PURCHASE PRICE OF WBSEDCL FROM WBPDCL GENERATING STATIONS IN PAISA / KWHR

GENERATING STATIONS Kolaghat TPS Bakreswar TPS Bandel TPS Santaldih TPS Bakreswar (New Unit) Sagardih (new Unit) Santaldih (New Unit) Summer Normal 191.40 179.56 211.05 199.15 191.67 191.67 191.67 Peak 197.40 185.56 217.05 205.15 197.67 197.67 197.67 Offpeak 187.40 175.56 207.05 195.15 187.66 187.66 187.66 Monsoon Normal 189.40 177.56 209.05 197.15 189.67 189.67 189.67 Peak 195.40 183.56 215.05 203.15 195.67 195.67 195.67 Offpeak 185.40 173.56 205.05 193.15 185.67 185.67 185.67 Winter Normal 187.40 175.56 207.05 195.15 187.67 187.67 187.67 Peak 193.40 181.56 213.05 201.15 193.67 193.67 193.67 Offpeak 182.40 170.56 202.05 190.15 182.67 182.67 182.67
120
SEASONWISE PURCHASE PRICE OF ELECTRICTY BY WBSEDCL FROM DPL

ITEM ENERGY RATE (paisa/Kwh) Time Slot PEAK NORMAL OFF_PEAK SUMMER 245.66 242.66 240.76 SEASON MONSOON 245.66 242.66 240.76 WINTER 245.66 242.66 240.76
SEASONWISE PURCHASE PRICE OF ELECTRICTY BY WBSEDCL FROM DPSCL

ITEM ENERGY RATE (paisa/Kwh) Time Slot PEAK NORMAL OFF_PEAK SUMMER 358.76 356.76 353.76 SEASON MONSOON 356.76 354.76 351.76 WINTER 354.76 352.76 348.76
121
ANNEXURE-B
1.0 In terms of Section 131 of Electricity Act 2003, WBSEB, after being reorganized in accordance with the transfer scheme, has been replaced by West Bengal State Electricity Distribution Company Limited (WBSEDCL) with effect from 1.4.2007 in so far as the functions and business in distribution activities and activities related to hydro undertakings are concerned and all liabilities of WBSEB in this regard have been vested in WBSEDCL. The Commission issued certain directions vide Annexure-B to Chapter-10 in the Tariff Order for the financial year 2006-07 to erstwhile WBSEB as a Distribution Licensee. WBSEDCL, being the distribution licensee of the licensed area of erstwhile WBSEB, the responsibility of complying with the directives of the Commission vests on it. The Commissions observations in respect of the compliances of the directives are as below:
2.0
The Commission directed the licensee (erstwhile WBSEB) vide Clause -1 of the aforesaid Annexure to Chapter-10 to make a time bound plan for implementation of 100% metered supply at the consumer end and submit it to the Commission within 3 months. The licensee was directed to submit first status report in regard to implementation of the plan within 3 months from submission of the plan and submit the 2nd status report within 6 months thereafter.
2.1
The Commission directed the licensee (erstwhile WBSEB) vide Clause 2(a) of the Annexure to bring the consumers receiving un-metered supply under the
122
fold of metered supply. The Commission further directed to assign priority to irrigation consumers followed by the street lighting.
2.2
In reply, WBSEB has submitted the report under cover of its letters dated 28.09.2006, dated 6.3.2007 and the report in the tariff petition of WBSEDCL filed for 2007-08 which indicate:
i)
All consumers receiving electricity at HV and EHV are provided with proper metering.
ii)
All L & MV domestic (except Lokdeep / Kutirjoyti), commercial, industrial, PWW consumers receiving electricity are provided with proper metering.
iii)
All L & MV Rural Domestic consumers connected with MCB have already been brought under metered connection.
iv)
In WBSEB system, all DTW and RLI pump-sets are connected through proper metering arrangement.
In their plan for implementation of 100% metered supply, WBSEB under the same letter submitted a time bound programme for metered supply to the remaining un-metered agricultural consumers. WBSEB has informed that the licensee has undertaken a programme for implementation of installation of energy meters and allied works for around 1,00,000 numbers of existing unmetered agricultural consumers on turn-key basis. Orders have been stated to have been placed on two firms for design, manufacturing, delivery, installation, testing and commissioning of 3 phase outdoor type static TOD energy meters covered in poly carbonate box. It has been stated that
123
WBSEBs orders have been placed also for operation and maintenance including replacement of damaged meters, taking meter readings and delivery of energy bills for two years. As mentioned by WBSEB the work is expected to be completed by April, 2008. In their subsequent report the WBSEB has informed that upto 20th February, 2007 in the premises of around 23,950 numbers of un-metered agricultural consumers such meters and other accessories have been installed. WBSEB has also informed the action being taken for converting un-metered Lokdeep / Kutirjyoti connection to metered supply in a phased manner. A time bound programme for installation of
meters in the premises of these consumers has also been stated to have been initiated. WBSEB expects that the metering of these consumers would be completed by March, 2007. In the subsequent status report, WBSEB has informed that out of total 60,323 numbers of un-metered Lokdeep / Kutirjyoti connection 31,426 numbers have been provided with meter supply upto 31.12.2006. WBSEB expected that the balance un-metered Lokdeep /
Kutirjyoti connection will also be provided with meter supply by March, 2007. WBSEB informed that action has been initiated for preparation of a scheme for metering of all street light points under the control of local bodies for which WBSEB has sought the cooperation of Municipalities and Gram Panchayets. In the status report it has been informed that necessary field survey for metering of all street light points has already been carried out by WBSEB. It is also informed that in many places re-arrangement of existing distribution mains as well as construction of some new distribution mains are needed to be executed before metering of street light point. WBSEB had already
completed metering of 2,119 numbers of points of street light till 31.12.2006 and is putting up all efforts to bring street lighting under the fold of metered supply.
124
2.3
The Commission, therefore, directs WBSEDCL to indicate the number of consumers under different categories who are being supplied with un -metered electricity as on 31.3.2007. This information along with the programme of completion of conversion of remaining un-metered supply under these categories shall be submitted by the WBSEDCL to the Commission within 3 months from the date of issuance of this order.
3.0
The Commission directed WBSEB in the tariff order for 2006-07 vide clause-3 that till dedicated feeders for effecting supply to agricultural consumers for irrigation purpose are put in place, supply to such consumers who already received metered supply and those who currently received un-metered supply but may have meters installed in course of 2006-07, may be given an option to receive supply on TOD basis. It was further directed that such optees may be allowed to pay cost of meters in 8 equated instalments covering a period of any 24 months starting from the month in which the meter is installed.
During the year 2006-07, WBSEB has reported to have taken massive programme for conversion of all un-metered agricultural supply into metered supply. It has also been reported that 23,950 numbers of un-metered agricultural consumers out of 1,00,000 such consumers have, by 20.2.2007, been provided with TOD meters by WBSEB irrespective of any option.
WBSEDCL has further informed that the billing on TOD basis for these consumers will, however, commence from 1.4.2007. In the case of
agricultural consumers receiving metered supply the change over to TOD system has, according to WBSEDCLs report, not made much progress because of poor response of the consumers to opt for TOD meters.
125
3.1
It has been reported by WBSEDCL that 1548 numbers of HV consumers, out of which 1450 numbers being 11 KV consumers, 90 numbers being 33 KV consumers and 8 numbers being 132 KV consumers have already been brought under TOD tariff and this has caused a trend in shifting of load from peak to off-peak.
In regard to introduction of TOD metering for industrial & commercial consumers on optional basis, WBSEDCL has informed that notice was served to industrial & commercial consumers having load of 35 KVA / 25 HP explaining the features of TOD metering, encouraging them to adopt TOD system of metering and asking for their option for changeover to TOD system. WBSEDCL has further reported that they have received 7 options from 7 industrial consumers of Howrah and Burdrwan districts having load more than 25 KVA / 25 HP.
3.2
WBSEDCL is directed to approach the abovementioned agricultural, industrial & commercial consumers who have not yet adopted TOD system through letters and printed leaflets for acceptance of TOD metering and at the same time try to find out the reason of nonacceptance of TOD metering by these consumers. WBSEDCL shall
convince these consumers by removing the reasons of inhibition and through proper counseling during taking the meter reading by direct interaction, during sending the bill through written materials and during collection of dues by personal interaction and by means of leaflets, banners etc. at the Centre of Collection.
The first report in this regard may be submitted to the Commission after four months but within six months of the issuance of this order. The
126
tariff petition for 2008-09 shall give a full report about the achievements and failures in this regard.
4.0
WBSEB was directed to submit the scheme for wide application of prepaid metering in all districts in phases along with detailed price break up of such meters.
4.1
WBSEDCL along with the tariff petition for 2007-08 has submitted the report indicating that 46 numbers of prepaid energy meters (both single phase and 3 phase) have been installed at the supply point to common service in some of the housing complexes at Newtown as a pilot project. For raising the
consumers awareness steps have been taken to highlight the advantage of prepaid meter through press release advertising in newspapers and through advertisement on trolley in Salt Lake and Newtown area. Direct
interconnection with the consumers was also arranged to explain the different features of the prepaid meter along with the benefits that may accrue out of it. It has also been reported that leaflets containing advantages of using these meters have been circulated to the consumers of Newtown and Salt Lake. WBSEDCL has further suggested that multiple slab tariff system prevailing in W.B needs to be simplified in respect of consumers to be covered under prepaid energy meter. WBSEDCL has further pointed out that the price of the meter is very high compared to the conventional electronic meter. The cost of the vending station along with the associated hardware and licensees software will further raise the effective cost of prepaid metering with optional key pad. WBSEDCL has appealed for upward revision of meter rent for
prepaid meter to Rs.50/- and Rs.100/- per month for single phase and 3 phase meter respectively. WBSEDCL has alternatively proposed that the
cost of prepaid energy meter be paid by the consumer on optional basis with the nominal meter rent of Rs.15/- per month. WBSEDCL has informed their
127
plan to introduce the prepaid energy meter at Newtown and Salt Lake on optional basis. WBSEDCL has reported to have already inaugurated a WBSEDCL has
vender machine at Salt Lake area at Vidyut Bhawan.
submitted their plan for introduction of prepaid metering in the district town by October, 2007. The progress made by WBSEDCL in introducing the prepaid metering system has been noted by the Commission with satisfaction.
4.2
It is now directed to expand the scope of use of such system among more number of consumers in the State. The option for purchase of prepaid meter by the consumers according to the specified standards and make along with proven quality may be allowed to the consumers.
4.3
The Commission also directs WBSEDCL to furnish quarterly report on the status of pre-paid meter installation programme already undertaken showing the number of consumers with categories who have applied for pre-paid meters, number of consumers in each category who have been provided with pre-paid meters, etc along with the specific remedial measures undertaken to remove the bottlenecks, if any, arisen during such implementation programme. The reports shall also form a part of the next tariff revision application.
5.0
In regard to the independent third party meter testing arrangement directed in the tariff order for 2006-07, WBSEDCL has informed that this subject has already been taken up with reputed engineering colleges within the State and the matter is being pursued for early setting up of such facilities in meter testing. A negotiation is also under progress with Central Power Research Institute (CPRI) for providing the independent third party meter testing facilities in their Eastern Regional Laboratory at Kolkata.
128
5.1
WBSEDCL is directed to continue its efforts to establish and operationalise accredited independent third party meter testing
arrangement expeditiously and report to the Commission within six months of the issue of this order.
6.0
In regard to the preparedness for becoming a successful ABT compliant licensee, WBSEDCL in the tariff petition has reported the installation of proper meter and successful participation in the mock exercise and UI accounting in ABT mode. WBSEDCL has informed that UI mock bills are being regularly sent to the constituents by WBSEDCL. A separate set up of ALDC (Area Load Despatch Centre) to facilitate the ABT mode of operation has been reported to have been formed on behalf of WBSEDCL and the personnel to operate the ALDC are reported to be receiving training at the SLDC.
6.1
WBSEDCL is directed to make their ALDC operational expeditiously so that the implementation of ABT can be achieved as per the programme.
7.0
In regard to the directives of the Commission to promote and explore the possibilities of purchase of power from renewable sources, WBSEDCL has submitted in the tariff petition that WBSEDCL has already began the process of purchasing of power from WBREDA from windmill and has signed an agreement for purchasing of power generated from bio-gas plant project of M/s. Mohan Dairy, Purulia. It has also been reported that power from
cogeneration sources have been purchased from such sources belonging to private entrepreneurs. Power from small hydel project developed by the
private entrepreneur is also being purchased from April, 2006 onwards. It has
been reported that more than 4.3 MU of energy was purchased by WBSEB in the
year 2006-07 (upto February, 2007). WBSEDCL has also reported to have
129
entered into an agreement with three other private entrepreneurs for green power. WBSEDCL is also reported to have negotiated with a few small hydel plants and bio-mass based power plants. It has been reported that the
aggregated capacity of power to be generated from renewable and nonconventional sources of energy by the intending developers is around 57.13 MW.
7.1
The Commission has noted the progress made by WBSEDCL in regard to promoting renewable energy and procuring such energy from various renewable sources.
7.2
The Commission directs WBSEDCL to pursue the procurement of energy from renewable and cogeneration sources to achieve the target set for the year 2007-08 in the relevant regulations of the Commission and report the details of achievement within six months from the date of issue of this order along with the final report in the tariff petition for the year 2008-09. The Commission further directs WBSEDCL to open up
the scope for power purchase from grid connected solar energy sources & from municipal solid wastes.
8.0
The Commission directed WBSEB to take action towards conservation of energy by adopting energy efficient process and demand side management. WBSEDCL in their tariff petition has submitted that the provisions included in the tariff order passed by the Commission for the year 2006-07 for WBSEB like introduction of TOD metering, voltage-wise graded load factor rebate and surcharge, time graded power factor rebate and surcharge etc. had been utilized by WBSEB for demand side management. It is reported that WBSEB had introduced high voltage distribution supply system for agricultural consumers. WBSEB has installed distribution substation of capacity 10 KVA,
130
11/ 0.4 KV for every two STW consumers minimizing loss in the peak period and managing demand.
WBSEB is reported to have taken action for conservation of energy in its office & HV / EHV substations by installing energy efficient lighting, neon signs etc. New HV / EHV substations are being planned with such lighting and in older substations the lighting system is being replaced. Solar cell
panels has been stated to have been installed at the headquarters of the licensee. Capacitor banks are stated to have been installed and the process is still continuing in various places.
8.1
WBSEDCL is directed to take all advantages of all the provisions of the tariff order for demand side management and conservation of energy. The licensee is further directed to encourage the consumers to use energy efficient lamps, electronic regulators and other suitable gadgets and is further directed to advise the consumers suitably to avoid higher leakage in their installations and to provide suitable other advises to the consumers for effecting energy conservation.
8.2
The Commission also directs WBSEDCL to submit a detailed plan of programme on energy saving and conservation scheme, other than power factor rebate and load factor rebate, for next five years as well as its implementation programme along with the next tariff application.
9.0
The Commission in the tariff order for 2006-07 directed WBSEB to develop Rural Electrification Distribution Backbone (REDB) with at least one 33 / 11 KV substation in every block appropriately networked and connected to the State Transmission System along with at least one distribution transformer in
131
each village with particular attention to dalit bustees, tribal areas and dwellings of weaker section of society. It has been reported by WBSEDCL that a massive programme for electrification of virgin mouzas / villages has been undertaken along with intensification of presently electrified villages. System improvement works have also been taken up. All these activities include installation of REDB. It has been further reported that out of 37910 inhabited mouzas 32190 numbers have been declared electrified by March, 2005. Programme of electrification for 4283 numbers of mouzas has been taken up under RGGVY scheme. Out of these, 3826 numbers of mouzas have been entrusted to 4 Central Public Sector Undertakings and 457 numbers of virgin mouzas have been entrusted to WBSEB (presently WBSEDCL). According to the report 497 numbers of mouzas out of 3826 numbers of mouzas have been declared electrified upto 31.12.2006 whereas 284 numbers of mouzas out of 457 mouzas which was entrusted to WBSEB has been completed by 31.1.2007. It has been reported that system improvement work under Rural Infrastructure Development Scheme and RGGVY Scheme for strengthening the distribution network and for erection of at least one REDB substation has been taken up. It has been further reported that presently most of the blocks of W.B are having REDB substation for feeding of power to the existing consumers. Out of remaining 48 numbers of blocks, scheme for erection of new substation at 11 numbers of blocks have been prepared and taken up with REC. De-centralised
distribution is also reportedly being executed by WBREDA by means of nonconventional sources of energy.
9.1
WBSEDCL is directed to complete the installation of REDB in the State expeditiously and monitor their effective utilization by proper
maintenance scheme, replacement (of defective equipment) scheme and ensure appropriate service to the rural consumers. A report regarding
132
this shall be submitted along with the tariff petition of 2008-09 indicating inter alia the coverage of dalit bustees, tribal areas and dwellings of E.W.S.
10.0
WBSEB was directed to undertake periodic energy audits in their establishment. WBSEDCL in their tariff petition for 2007-08 has submitted the report in connection with the energy audit. It has been reported that
energy meters against all feeders at EHV substation & lines, HV substation & lines and about 18,000 distribution transformers have already been installed by WBSEB to facilitate energy audit. International Institute for Energy
Conservation (IIEC), a consultant, has been reported to have been engaged from December, 2006 for energy auditing. Energy audit at Vidyut Bhavan, the headquarters of the licensee has been stated to have been conducted.
10.1
WBSEDCL is directed to continue with the energy audit periodically in all their establishments and accordingly take corrective action for conservation of energy.
10.2
The Commission directs that WBSEDCL shall conduct energy audit for all its hydro generating stations and 400 KV sub-stations and submit report along with next tariff petition. The Commission also directs
WBSEDCL to conduct energy audit for PPSP within six months after all its units are put under commercial operation and submit a copy of the report to the Commission within six months from the date of commercial operation. The report should also include the measurement of actual efficiency of different systems and auxiliary consumption of different equipments of Purulia Pumped Storage Project. Along with this report WBSEDCL shall submit the report of the performance guarantee test.
133
11.1
WBSEB was directed to approach its consumers particularly the bigger ones for ensuring energy auditing and energy conservation activities. WBSEDCL in its report in the tariff petition has submitted that a State Level Energy Conservation Committee has been constituted by WBSEB. The committee in consultation with National productivity Council is working towards
implementation of Energy Conservation Act within the State of West Bengal. 62 numbers of designated consumers in the State under Schedule -2(S) of Energy Conservation Act 2000 have been approached for carrying out energy audit in terms of the said act. Awareness programme among the consumers of commercial and industrial category, school children, farmers etc. have been arranged and week long programme for awareness campaign is reported to have been organized in different parts of the State. The State Level Energy Conservation Committee is reported to have approached the Power Deptt., Govt. of W.B for creation of State Level Energy Conservation Fund. National Energy Conservation Day is being observed with participation of the representatives from other utilities and industrial houses of the State.
11.2
WBSEDCL is directed to continue with their efforts in energy conservation and directed to try to quantify the energy saved as a result of such efforts.
12.1
WBSEB was directed in the tariff order of 2006-07 to continue to give adequate and appropriate publicity to the provisions of the WBERC (Guidelines for Establishment of Forum for Redressal of Grievances of Consumers and time & manner of dealing with such grievances by the Ombudsman) Regulation 2006. It has been reported in the report submitted by WBSEB along with their tariff petition for 2007-08 that a two-tier forum for Redressal of Consumers Grievances has already been constituted by the
134
Board for awareness among the employees & information about the provisions for Grievance Redressal System is stated to be prominently displayed at all offices of WBSEB targeting the consumers. It has been
reported that monthly meeting at circle level is organized with the bulk consumers to make them aware of the Grievance Redressal System. Meetings are reported to have been organized at Burdwan (D) zone of WBSEB and Behrampur (D) zone of WBSEB with the presence of high officials of WBSEB, Ombudsman, Advocates working for WBSEB to address the officials of the Board about the provisions of Grievance Redressal Regulations. Several other such programmes have stated to have been
organized in district offices for the awareness of the personnel of WBSEB on Grievance Redressal System.
12.2
The Commission directs WBSEDCL to make continuous efforts to educate the consumers about their rights & responsibilities. It is further directed that the procedure for redressal of the grievance of a consumer as laid down in the Act and Regulations shall be displayed in all Cash Collection Centers of WBSEDCL.
13.1
WBSEB was directed by the Commission to prepare a 5-year plan with annual milestone for reducing T&D losses. WBSEB was further directed to submit a report along with the tariff petition for 2007-08 incorporating therein the details of efforts made for encouraging community participation, for effective enforcement, for introduction of incentives for staff and consumers and for technological up-gradation like reduction of LT / HT ratio and adoption of HV distribution system etc.
In the report submitted by WBSEDCL along with their tariff petition for 200708 it has been reported that the licensee has taken effective steps to reduce
135
T&D losses in order to gradually bring these losses at the acceptable minimum level. It has been further reported that WBSEB has completed Metering of
metering at substations upto 11 KV feeders in two phases.
feeders for new substation are under progress in third phase. Distribution Transformer (DTR) metering has also been reported to have been taken up by the Board and in the first phase 10 numbers of APDRP town have been stated to have been taken up. Out of total 13,502 numbers of DTR metering, 13,237 numbers of meters have been installed till 28.2.2007. It has been further reported that the licensee is already carrying out massive programme for installation of meters for all un-metered agricultural consumers, Lokdeep / Kutirjyoti connection and street light points. In order to reduce the technical losses the licensee is reported to have already erected several 132 KV & 33 KV substations, strengthened the distribution system and erected distribution substation for increasing HT / LT ratio and for technical loss reduction. Improvement in distribution network under APDRP scheme in three circles and 16 district towns has been reported to have been taken up by the licensee. High Voltage Distribution Supply (HVDS) system is stated to be under implementation for power supply to agricultural consumers and also for rural electrification programme in order to substantially reduce the technical as well as commercial loss. For reducing overall ATC loss, Security & Loss Prevention (S & LP) wing has been stated to have been strengthened. Theft of electricity of around 20 MU every year by unauthorized means is being detected by S & LP activity. It has been stated that S & LP wing had
organized 7,223 numbers of raid in 2005-06 in the licensed area of the licensee and the target for conducting such raids has been further raised to 8,000 numbers, 9,600 numbers in the year 2006-07 and 2007-08 respectively. Important meetings are stated to have been held with high
police officials like DIG & SP at district levels for cooperation during detection and prevention of theft. Spot billing facility introduced in some of the electric
136
supply stations of the licensee has also been stated to be utilized for reducing commercial loss. It has been further reported that due to cumulative effect of all the above activities ATC loss of WBSEB reduced from 37.86% in the year 2004-05 to 33.395% in the year 2005-06. For further reduction of ATC loss, Geographical Information System (GIS) has been stated to have been taken up by the Board to facilitate energy auditing, mapping and documentation of entire power network of the licensee. Once the documentation is completed, 33 KV & 11 KV network will be planned properly on the basis of load flow study through CYMDIST software which will according to the licensee reduce the technical losses. The licensee has further reported that higher proportion of low voltage sales in its licensed area is a factor for higher T&D losses whereas in some of the districts high value consumers are stated to be supplied by other licensees like DVC, DPSCL. It has been further reported that the licensee is regularly taking action to avoid long 33 KV, 11 KV at LT lines and to prevent overloading of transformers, other equipments and theft of electricity. In the tariff petition for 2007-08 WBSEDCL has considered T&D losses of 24.7% and has submitted a 5-year plan to reduce T&D losses to 21.6% in the year 2011-12 stated to be as per the approved restructuring plan of Govt. of W.B.
13.2
The licensee, WBSEDCL has in their tariff petition of 2007-08 claimed a T&D loss of 24.7%. Considering the comparative high proportion of L.T supply, higher growth in L.T category due to massive rural
electrification activity under APDRP & RGGVY schemes and extension of electricity supply to far flung areas the Commission has allowed T&D loss of 22.91% for 2007-08 to the licensee. Regarding programme of reducing T&D loss during next five years the Commission has already engaged expert consultant whose reports are expected soon. On
137
receipt of this report the Commission shall take a view on the programme of reduction of T&D loss.
14.1
In the tariff order of 2006-07 the Commission directed WBSEB to make a detailed time bound programme for supplying power to those areas where its load is presently supplied with power through radial mode of connection with other licensees.
WBSEDCL in the report in this regard submitted with the tariff petition for 2007-08 has given the details of the activities being undertaken by the licensee to take over the load of Asansol area which is now being supplied with power radially from DPSCL and DVC substations. It has been reported that WBSEB has erected one 220/132 KV substation at Asansol where one 160 MVA transformer and one 50 MVA transformer have already been installed and 11 numbers of 33 KV Bays have been erected. Considering the future load of Asansol the substation is being further strengthened by doubling the MVA capacity. It has been reported that by this arrangement 4 numbers of 33 / 11 KV substations of WBSEB which are now being fed from Kalipahari substation of DVC will be fed from the newly erected Asansol substation of WBSETCL within next few months. It has also been reported that WBSEB will then be able to supply the power to their own consumers of Asansol area directly from WBSEB grid but the total area can be given power from WBSEB grid in second phase when further 3 numbers of 33 / 11 KV substations and incoming 33 KV lines from newly erected Asansol substation including outgoing 11 KV lines are completed.
14.2
WBSEDCL is directed to submit the report within 3 months from the date of issue of this order regarding the progress of taking over the load of the area to be fed from Asansol 220 KV substation. WBSEDCL is
138
further directed to expedite the second phase of work for construction of Niyamatpur 33 / 11 KV substation, Domohoni 33 / 11 KV substation, Mongalpur 33 / 11 KV substation along with their incoming 33 KV lines from Asansol 220 KV substation and outgoing 11 KV lines. The
progress made in this regard shall also be included in the aforesaid report.
15.0
WBSEB was directed to show the impact on revenue requirement of 2006-07 with required adjustment if any to be made in 2007-08 due to introduction of new consumer categories, graded rebate and surcharge on load factor & power factor, introduction of TOD scheme in new areas. It has been reported by WBSEDCL in the report submitted along with the tariff petition of 2007-08 that the impact of introduction of TOD scheme in new areas and for introduction of new consumer categories on revenue requirement was marginal only. In case of bulk consumers, however, the effect of graded
rebate and surcharge for load factor & power factor was noticeable. It has been reported that higher rebate amount to the tune of Rs.15.62 crore was considered in the year 2006-07 in the tariff petition of WBSEB. For the rebate and surcharge on power factor an additional allowance to the tune of Rs.12.66 crore is required.
16.0
WBSEDCL shall organize awareness programme among its working personnel particularly with reference to standards of performance of the licensees, supply code, grid code and various other requirements of the Electricity Act 2003 and the Regulations of this Commission made thereunder so as to ensure that WBSEDCLs own employees become aware of this requirement and conduct their official business strictly in terms of the provisions of the Act and the Regulations made thereunder.
139
17.0
WBSEDCL shall continue to give adequate and appropriate publicity to the provisions of the West Bengal Electricity Regulatory Commission (Guidelines for Establishment of Forum for Redressal of Grievances of Consumers and Time and Manner of Dealing with Such Grievances by the Ombudsman) Regulations, 2006 and shall submit a report to the Commission describing the actions taken at the time of submission of the next years tariff petition. The same report shall also contain a detailed picture of how the complaints of the consumers are being redressed.
18.0
WBSEDCL shall also draw up and implement urgently a programme for increasing the awareness of the consumers of the salient features of the Electricity Act 2003 and the Regulations made thereunder, particularly those that lay down the rights and the duties of the consumers as also the standards of performance of the licensees and the ways and means to redress consumer grievances. A status report on the matter indicating both quantitative and qualitative aspects, should be submitted to the Commission along with the next tariff revision petition.
19.0
In its tariff applications for the second control period and onwards, WBSEDCL shall provide all data related to load factors computation for each stratum of load factor range of 5% starting from 20% load factor to 90% load factor. Similar data for stratum of load factor range of 2% starting from 90% to 100% range shall be submitted in the said applications. In its tariff applications for the second control period and onwards, WBSEDCL shall also provide all data related to power factors computation for each stratum of power factor range of 1% starting from 85% power factor to 98% power factor.
20.0
WBSEDCL shall show the power procurement from different sources below 132 KV separately along with showing the sources independently.
140
21.0
WBSEDCL is directed to indicate proposed fixed charge in terms of per KVA per month instead of per consumer per month for all categories of LV and MV consumers in its tariff applications for the second control period and onwards. WBSEDCL shall also indicate similarly the proposed demand charge in terms of per KVA per month for all categories of HV and EHV consumers in its tariff applications for the second control period and onwards.
22.0
WBSEDCL is directed to submit a report to the Commission within six months of this order showing the number of consumers and their consumptions under all new categories both on actual basis and on projection basis. The report should also include status and projection for those classes of consumers who have no drawal at present. The report shall also form a part of the next application for annual performance review of the second control period.
23.0
WBSEDCL shall also make survey for determination of energy consumption pattern and load pattern of all new categories of consumers for all three seasons for peak, normal and off-peak period. The report of such survey shall be submitted to the Commission with the application for annual performance review for the first year of the second control period.
24.0
WBSEDCL shall also start to conduct safety audit in phased manner and submit the report with the next tariff application to the Commission.
25.0
All the reports called for in this chapter are in addition to those, which are statutorily required, either by the Act, or by any of the Regulations made thereunder, or by any of the Regulations made thereunder, or by both for the purpose of submission of next tariff revision petition. In case of non-
submission of such report, the Commission shall take necessary action as deemed fit.
141
26.0
WBSEDCL shall show the impact on revenue requirement of 2007 2008 in the tariff petition of 2008 2009 with requirement of adjustment, if any, to be made in 2008 2009 due to introduction of new consumer categories in new areas in this order.
27.0
WBSEDC shall, within three months, submit a statement to the Commission showing the details of the plan and non-plan loans received from the State Government for capital works indicating therein the Govt. order number, date, amount of loan, the capital work for which the loan was received and the asset(s) created in each case. A copy each of the relevant Govt. orders shall be enclosed with the statement. This direction is in continuation of the
direction contained in the last sentence of foregoing paragraph 6.8(e). In case this report is not, for any reason beyond the ability of WBSEDCL to control, ready within the aforesaid period of three months, WBSEDCL shall submit the same within six months from the date of the instant order. This statement shall also be submitted with the next tariff revision petition.
28.0
WBSEDCL shall maintain separate accounts for SHRELCOP and discharge all the functions of a licensee in respect of the erstwhile licensed area of SHRELCOP until a new distribution licensee is appointed by the Commission for that area.
Sd/R. P. SAMADDAR MEMBER
Sd/PRITITOSH RAY MEMBER
Sd/S. N. GHOSH CHAIRPERSON
DATE: 01.08.2007
142
Corrigendum to the Tariff Order dated 01.08.2007 of the Commission in respect of West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) in Case No.: TP - 35/07-08
Correction of typographical errors/ apparent mistakes in the Tariff Orders dated 01.08.2007 in respect of WBSEDCL for the year 2007-08 Page No. 69 102 Nomenclature Paragraph 5.9.1 5th line 8th & 9th words Paragraph 8.2.2.7 7th line (counting from the beginning of the paragraph at page 101) 9th word Annexure A2 Last entry against Sl. No. 12 relating to Industry (Urban), under subheading Monthly consumption in KWH, to the column with heading Applicable Tariff Scheme Paragraph 13.2 6th line 3rd word Existing Description inspite of before Corrected Description in view of after
112
Above
3500
Above 2000
137
22.91%
22.72%
Sd/(R.P.SAMADDAR) MEMBER DATE: 09.08.2007
Sd/(PRITITOSH RAY) MEMBER
Sd/(S.N.GHOSH) CHAIR PERSON

Combine Corrigendum and Tariff Order WBSEDCL 2007-08

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Combine Corrigendum and Tariff Order WBSEDCL 2007-08

Transféré par

Droits d'auteur :

Formats disponibles

TARIFF ORDER

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

Tariff Order of WBSEDCL for the year 2007 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 2008

CHAPTER - 2 THE CASE OF WBSEDCL

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

endeavour is being made to reduce the ATC loss.

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

Accordingly, Rs.637.96 crore deducted by the

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 2008

CHAPTER - 3 OBJECTIONS AND SUGGESTIONS

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

12. 13. 14. 15. 16. 17. 18. 19.

Bharat Chamber of Commerce.

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission

Tariff Order of WBSEDCL for the year 2007 - 2008

Tariff Order of WBSEDCL for the year 2007 - 2008

West Bengal Electricity Regulatory Commission