View
35
Download
0
Category
Tags:
Preview:
DESCRIPTION
Analysis of ARR & Tariff Proposal 2011-12 of SLDC. Consumer Counsel. Presentation Outline. SLDC’s Proposed ARR for 2011-12 Comparison with previous ARR Analysis, observations and suggestion on ARR parameters Conclusion. Proposed ARR for 2011-12. Comparison of ARR. - PowerPoint PPT Presentation
Citation preview
Analysis of ARR & Tariff Proposal
2011-12 of
SLDC
Consumer Counsel
Presentation Outline
SLDC’s Proposed ARR for 2011-12
Comparison with previous ARR Analysis, observations and
suggestion on ARR parameters Conclusion
Proposed ARR for 2011-12
SL No
Item Cost (Cr)
1 Return on Equity
0
3 Interest on Loan
0
4 Depreciation 312.036
5 O&M expenses
215.78
6 HR Expenses 611.572
7 Interest on Working Capital
31.02
Total 1170.408
Comparison of ARR
Sr No
Perticulars Approved (2009-10 )
Approved ( 2010-11)
Proposed (2011-12)
1 Employee cost including compensation
395.00 364.92 611.572
2 Additional compensation for ABT during 2010-11
150.00 85.00 -
3 R&M expenses 100.00 201.80 215.780
4 A&G expenses (including certification of SLDC personnel)
115.00 75.00 -
5 Depreciation 6.00 27.80 312.036
6 Interest on loan 0 0 0
7 Interest on WC 0 22.33 31.020
8 ROE 0 0 0
Total 766.00 (excluding Rs 200 lakh for EACC)
776.85 1170.408
( 150% rise)
Comparison of Annual SLDC charges
Sr No
Particulars Unit
Approved ( 2010-11) Per annum
Proposed (2011-12) Per annum
1 ARR of SLDC 776.85 1170.408
2 System Operation Charge Lacs 621.48 936.327
3 Market Operating Charge Lacs 155.37 234.082
2 SOC for Intra-state transmission licensee
Lacs
62.15 93.633
3 SOC & MOC for Generating Stations and sellers
Lacs 357.35 421.347
4 SOC & MOC for DISCOM & Buyers
CESU NESCO WESCO SOUTHCO
Lacs
Lacs
357.357
113.8390.82110.7141.99
421.347
134.283100.828 134.157 52.078
Analysis of ARR and Suggestions
Observations & suggestions
Depreciation An amount of Rs 17.536 lacs towards depreciation of assets
in unified Load Dispatch Center & offices in SLDC may be consider in the ARR
However, depreciation claimed towards recovery of total capital expenditure of Rs 294.5 lacs to be spent in 2011-12 shall not be allowed since it is not in line with the provisions under OERC SLDC Regulation, Sept 2010.
O&M expenses The proposed O&M expenses Of Rs 215.78 lacs seems to be
on higher side and shall not be approved by the Commission . SLDC could not able to spent the approved O&M charges (201 lacs) in FY 2010-11& therefore the O&M charges shall be computed as per OERC Regulation : 5.72% escalation over actual O&M expenditure of 2010-11
Observations & suggestions
Human Resources expenses Since FY 2009-10, the SLDC is failed to recruit the requisite
86 number of staff to manage the day to day SLDC operations therefore the proposed Human resource expenses of 611.572 lacs for FY 2011-12 shall be approved after verifying the current status of availability of staff at SLDC
Interest on Working Capital Proposed working capital of 264.01 shall be reduced based
on the approved O&M & Human resource expenses
Some more observations
Issue Status
Transfer of assets of Sub –SLDC at Bhubneshwar, Meramundali, jayanagar, & Bhudipadar to SLDC
No definite time frame is suggested by OPTCL
Functioning of EASSC of SLDC Commission has directed to establish the EASSC and commence the operations wef 01.04.2010 and also have approved fund for EASSC since 2008-09. However EASSC is not operational till date
SLDC should headed by Chief load dispatcher in the rank of Director and the should supported by requisite staff (86 No)
The HR information pertaining to 2009-10,2010-11 reveal the present strength of SLDC 48 without Chief load dispatcher
Non compliance of the direction of Hon Commission
In Conclusion
The SLDC is consider as ‘Brain’ of power system operation.
SLDC is responsible for optimum scheduling and dispatch of electricity, carrying out real time operations for grid control and dispatch of electricity etc..
Non functioning of SLDC at the full strength will affect the power system operations and increases the cost of electricity.
The SLDC has committing delay in implementing the orders of Hon Commission
In Conclusion
Therefore before approving the ARR of 2011-12 the Hon. Commission should verify the status of work , actual expenditure vis a vis projected cost in previous ARR and avoid the unnecessary items / cost to be pass through in the ARR and to the end consumers
The Commission may consider above facts before approving the ARR for FY 2011-12
Thank You
Recommended