THIRTEENTH ANNUAL REPORT

KARNATAKA ELECTRICITY REGULATORY COMMISSION

THIRTEENTH

ANNUAL REPORT

2011 – 12

6th & 7th Floors, Mahalaxmi Chambers

No.9/2, Mahatma Gandhi Road, Bangalore - 560 001

Tel: 080 – 25320213 / 214, 25320339, 25323765, Fax: 080 – 25320338

Email: [email protected] Website: www.kerc.org

13th Annual Report of KERC

2012

Karnataka Electricity Regulatory Commission

C O N T E N T S

SL. NO. PARTICULARS PAGE NO

1 Foreword i

2 Introduction 2

3 The Commission & its functions 3

4 The Commission’s Office & Functions of the Secretary 5

5 Power Sector- An Overview 6

6 Important events during the year 14

7 Activities of the Commission in 2011-12 15

8 Advisory Committee of the Commission 23

9 Implementation of the RTI Act 25

10 Budget and actual expenditure of the Commission 26

11 Administration 27

12 Commission’s Court 32

13 Activities of Ombudsman 37

14 Consumer Grievance Redressal Forums 38

15 Activities of office of Consumer Advocacy 39

16 Programme for Year ahead 41

17 Implementation of Kannada in the Commission 44


2012

Karnataka Electricity Regulatory Commission Page

i

KARNATAKA ELECTRICITY REGULATORY COMMISSION

M.R. Sreenivasa Murthy 6th & 7th Floors

Chairman Mahalaxmi Chambers # 9/2, M.G. Road Bangalore – 560 001

FOREWORD

I am happy to present the thirteenth Annual Report of Karnataka Electricity

Regulatory Commission for the year 2011-12. This Annual Report is presented in

compliance with the provisions of Section 105 of the Electricity Act 2003 gives an

account of the activities of the Commission during the year 2011-12 with a

summary of its Budget and actual expenditure for the year.

In the year 2011-12, the Commission has issued Tariff Orders for the Distribution

licensees in the State for the period FY11-12. The Commission has also approved

Annual Review of Performance for FY10-11 in respect of all ESCOMs and Multi Year

Tariff Orders in respect of Hukeri RECS for the period FY12-13. The Commission

has also issued amendments to Regulations in respect of Determination of Tariff,

Recovery of Expenditure and Renewable Energy Certificates.

The Commission is reviewing the power supply position in the State from time to

time and has been monitoring measures taken by ESCOMs to provide reliable

power supply at reasonable cost to consumers. The Commission has issued

various directives, for being implemented by the ESCOMs, to bring about

improvement in quality as well as reliability in services.

I along with my colleague Members Sri Vishvanath Hiremath and Sri K Srinivasa

Rao would like to place on record the valuable advice provided by the Members of

the Advisory Committee and the cooperation of the utilities and other stakeholders

in ensuring the effective functioning of the Commission during the year.

M.R. Sreenivasa Murthy

CHAIRMAN


2012


1

A glorious view of Jog Falls


2012


2

2. INTRODUCTION

In accordance with the provisions of the Karnataka Electricity Reform Act 1999,

the Karnataka Electricity Regulatory Commission was established in 1999 and

began functioning from 15th November 1999.

The Government of India enacted the Electricity Act 2003 and notified the same

on 10th June 2003. As per Section 105(1) of the Electricity Act 2003, the KERC is

required to prepare an Annual Report giving a summary of its activities during

the previous year, the copies of which are to be forwarded to the State

Government. Further, as per Section 105(2) of the Electricity Act 2003, these

Annual Reports are to be laid before the State Legislature.

This is the thirteenth Annual Report of the Commission giving a summary of the

activities of the Commission during the year 2011-12 and its proposed

programmes for the year ahead i.e. 2012-13. The report also contains the

Budget for 2012-13 and the actual expenditure of the Commission for the

financial year 2011-12.

In the financial year 2011-12, the Commission has issued Tariff Orders for FY11-12

in respect of the Distribution utilities namely, Bangalore Electricity Supply

Company, Mangalore Electricity Supply Company, Chamundeshwari Electricity

Supply Corporation Ltd., Hubli Electricity Supply Company, Gulbarga Electricity

Supply Company Ltd., and the Multi Year Tariff Order in respect of Hukeri Rural

Electric Co-operative Society for the period FY11-13. The Commission has issued

Regulations / Orders on various subjects during the year. The Commission has

disposed of 72 petitions during the year. The details of the activities are

discussed in the subsequent Chapters.


2012


3

3. THE COMMISSION & ITS FUNCTIONS:

3.1 THE COMMISSION

The Commission consists of the Chairman and two Members. Sri M.R.Sreenivasa

Murthy, IAS (Retd.) assumed charge as Chairman of the Commission on

24.03.2010. Sri Vishvanath Hiremath and Sri K.Srinivasa Rao, are the Members of

the Commission both having assumed charge on 23.10.2008.

3.2 FUNCTIONS OF THE COMMISSION

1. As per Section 86 of the Electricity Act 2003, the State Electricity Regulatory

Commissions are required to discharge the following functions:

a. Determine the tariff for generation, supply, transmission and wheeling of

electricity, wholesale, bulk or retail, as the case may be, within the State;

b. Regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured from

the generating companies or licensees or from other sources through

agreements for purchase of power for distribution and supply within the

State;

c. Facilitate intra-state transmission and wheeling of electricity;

d. Issue licences to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their

operations within the State;

e. Promote cogeneration and generation of electricity from renewable

sources of energy by providing suitable measures for connectivity with

the grid and sale of electricity to any person, and also specify, for

purchase of electricity from such sources, a percentage of the total

consumption of electricity in the area of a distribution licensee;

f. Adjudicate upon the disputes between the licensees, and generating

companies and to refer any dispute for arbitration;


2012


4

g. Levy fee for the purposes of the Electricity Act;

h. Specify State Grid Code consistent with the Grid Code specified under

clause (h) of sub-section (1) of section 79;

i. Specify or enforce standards with respect to quality, continuity and

reliability of service by licensees;

j. Fix the trading margin in the intra-State trading of electricity, if considered

necessary; and

k. Discharge such other functions as may be assigned to it under this Act.

2. The State Commission is also to advise the State Government on all or any of

the following matters, namely: -

i. promotion of competition, efficiency and economy in activities of the

electricity industry;

ii. promotion of investment in electricity industry;

iii. reorganization and restructuring of electricity industry in the State;

iv. matters concerning generation, transmission, distribution and trading of

electricity or any other matter referred to the State Commission by that

Government.

3. The State Commission is to ensure transparency while exercising its powers

and discharging its functions.

4. In discharge of its functions, the State Commission is guided by the National

Electricity Policy, National Electricity Plan and tariff policy published under

section 3 of the Electricity Act 2003.


2012


5

4. THE COMMISSION’s OFFICE & FUNCTIONS OF THE

SECRETARY:

4.1 THE COMMISSION’s OFFICE

The Chairman of the Commission is the Chief Executive as per Section 84 of the

Electricity Act. The Commission is supported by the Secretariat, headed by the

Commission’s Secretary, Sri T.A.Parthasarathy, an IAS officer in the rank of

Selection Grade has been appointed as Secretary with effect from 02.05.2011.

Besides the Secretary, the Commission’s Office has Senior level officers on

deputation serving as Director (Technical) and Director (Tariff). They are assisted

by Deputy Directors and other supporting staff. The details of the Officers and

Staff working in the Commission are included in this report. The Organization

chart of the Commission is enclosed at Annex – 1

4.2 FUNCTIONS OF THE SECRETARY:

The major functions performed by the Secretary are as follows:

a) To supervise and guide the functioning of all the Officers and Staff of the

Commission;

b) To prepare or cause to be prepared briefs and summaries of all pleadings

presented by various parties in each case before the Commission in

discharge of its functions;

c) To assist the Commission in the proceedings relating to the powers

exercisable by the Commission;

d) To ensure execution of the orders passed by the Commission;

e) To collect from the State Government or other offices, companies or firms or

any other party as may be directed by the Commission, such information as

may be considered useful for the purpose of efficient discharge of the

functions of the Commission under the Act and place the said information

before the Commission; and

f) To keep in his custody the Seal and records of the Commission.


2012


6

5. Power Sector – An Overview

5.1 Status of Power Generation in the State:

View of Power House at Linganamakki

As on 31.03.2012, the installed capacity of power generation in Karnataka

supplying power to distribution licensees and the share of the State in the central

projects is as indicated below :-

(MW)

Source Hydro Thermal Others Total

KPCL & VVNL 3657 2348 - 6005

Private Generating

Companies (Tata Power,

Rayalseema & UPCL)

- 709 - 709

Cogeneration &

Renewables

- - 2550 2550

Captive 350 350

State Total 3657 3057 2900 9614

Central Projects (State’s

Share)

- 1700 - 1700

Total 3657 4757 2900 11314

Source: KPTCL daily generation sheet.


2012


7

In addition to the above, there is 1160 MW generation Capacity owned by M/s JINDAL,

which is not being supplied to ESCOMs under long-term contracts.

As per the information obtained from CEIG, Bangalore, the installed captive capacity

in the State is 2796 MW (1 MW above installed capacity).

The Projects on the anvil are as under:

Projects Capacity in MW

BTPS-2 - KPCL 500

BTPS-3 – KPCL 700

UPCL-2 – IPP 600

Kudgi Phase-1 – NTPC UMPP 1600

Kudgi Phase-2 – NTPC UMPP 2400

KPCL Chhattisgarh project 1600

KPCL JV with BHEL at Yermaras &

Yedlapur

2400

Thermal Plant at Gulbarga 1320

Gas based project at Bidadi 1400

Total 12520

5.2 Green Power in Karnataka

The following is the potential and envisaged capacity addition of green power

up to 2014 in the State:

Source

Potential

in

MW

Installed as on

30.04.2012-

MW*

Additional

Capacity Target

for 2014 as per

GO policy-MW

Expected

investment to

meet the

target- Rs. Crs.

Wind 12950 2023 2969 15680

Mini-Hydro 3000 647 600 2700

Co-gen in

sugar industry

1500 949 281 1120

Biomass/biogas 1000 89 300 2100

Waste to

energy

135 - 50 400

Solar* 10000 9 126 1890

Total 28585 3717 4326 23890

Source: RE policy of the State: *source: KREDL


2012


8

RE Potential in MW

1000

135

15003000

12950

10000W ind

Mini-Hydro

Co-gen in sugar industry

Biomass/biogas

W aste to energy

Solar

RE Ins talled as on 30.04.2012 - MW

2023

647

89949

9

Wind

Mini-Hydro

Solar

Was te to energy

Co-gen in sugar indus try

Biomass /biogas

A view of wind farm at Vanivilas Sagar


2012


9

Out of the installed capacity of renewables the following capacity is under long term

PPA with ESCOMs:

Source Capacity contracted by ESCOMs - MW

Wind 1724

Mini-Hydro 671

Co-gen in sugar industry 211

Biomass/biogas 80

Solar* 14

Total 2700

In addition to above, 207 MW of renewables is under captive generation.

5.3 Status of Transmission System in the State:

The Transmission system in the State is under the State Transmission utility, namely

the Karnataka Power Transmission Corporation Ltd., (KPTCL). An overview of the

State Transmission system as on 30.04.2012 is shown below:

Voltage Level in

KV No.of Stations

Transmission Line in

Ckt. Kms

400 4 2291

220 89 9690

110 330 9026

66 544 9696

33 347 8593

TOTAL 1314 39296 (Source: KPTCL Website)

During FY12, KPTCL has handled a peak load of 8506 MW.

5.4 Status of Distribution System in the State:

The Distribution System in the State is vested with five Distribution companies

and one Rural Electricity co-operative society viz;

1. Bangalore Electricity Supply Company Ltd., (BESCOM)

2. Mangalore Electricity Supply Company Ltd., (MESCOM)

3. Chamundeswari Electricity Supply Corporation Ltd., (CESC)

4. Hubli Electricity Supply Company Ltd., (HESCOM)

5. Gulbarga Electricity Supply Company Ltd., (GESCOM)

6. Hukeri Rural Electricity Co-Operative Society (Hukeri RECS)


2012


10

Important statistics relating to the distribution system in the State are given

below:

* As per DCB furnished by ESCOMs

** As on 31.03.2011

5.4.1 Source wise Generation:

The source wise generation of power procured by ESCOMs in the State during

FY12 is indicated in the following table:

SOURCE Energy*

in MU

Cost **

in Crs

KPCL Hydel 14024.54 709.46

KPCL Thermal 12872.17 4362.78

Central Generating Stations 11229.92 3041.90

Major IPPs 3353.72 1300.40

N C Es (Minor IPPs) 5750.78 2009.60

Short-term 5580.42 2595.08

Others 784.08 413.90

Total 53595.63 14433.12

Source: Information furnished by ESCOMs in June 2012

Sl.

No. Particulars (As on 31-12-2011) BESCOM MESCOM CESC HESCOM GESCOM

1. Area Sq. km. 41092 26222 27,772 54513 43861

2. Districts Nos. 8 4 5 7 6

3. Taluks Nos. 44 22 29 49 31

4. Population lakhs 207.42 61.55 81.55 148.00 95

5. Consumers* lakhs 79.67 18.37 24.58 34.69 23.51

6. Energy

Consumption*

MU 20806 3510 4652 7470 5453

7. Zone Nos. 3 1 1 2 2

8. DTCs Nos. 158662 37218 55741 53182 52553

9. Assets Rs. in

Crores 4122.08 843.35 822.86** 2540 1709.58

10. HT lines ckt. kms 73759.27 26384 30781.10 55174.84 36471.56

11. LT lines ckt. kms 149564.62 70109 69989.61 107171.84 75169.66

12. Total employees

strength:

A Sanctioned Nos. 16895 6643 7802 13096 8549

B Working Nos. 10607 3983 5248 7400 5096

13. Demand Rs. in

Crores 7079.71 1111.11 2096.70 2608.43 1768

14. Collection Rs. in

Crores 6842.96 1041.60 1924.64 2476.33 1514


2012


11

To cope with the increased demand during the year (from 46,641 MU during

FY2011 to 53,596 MU) 5580 MU was procured through short-term power

purchase at a weighted average cost of Rs.4.65/- unit.

C o n trib u tio n fro m va rio u s s o u rc e s o f g e n e ra tio n to m e e t th e d e m a n d o f E S C O M s - F Y 1 2

K P C L H yd e l2 6 %

K P C L T h e rm a l24 %

C G S2 1 %

M a jo r IP P s6%

N C E s (M in o r IP P s ) 1 1 %

O th e rs (in c lu d in g s h o rt te rm

p ro c u rem en t)1 2 %

5.4.2 Energy Consumption for FY12:

The consumer category wise sales made by the ESCOMs in the State during

FY2012 are as follows:

Category Consumer Category No. of

Installations

Energy

Sold in MU

LT-1(a) Bhagya Jyothi 2685330 532.41

LT-2 Domestic AEH & Pvt. Institutions 11202603 8040.46

LT-3 Commercial – Applicable to arrears

coming under VPs

1493921 2288.98

LT-4 (a) IP sets-Less than 10HP – General 1924067 15215.48

LT-4 (b)&( c) Irrigation Pump sets – More than 10HP 9326 38.56

LT-5 LT Industries 323853 1774.11

LT-6 Water Supply 113066 875.14

LT-6 Street light 102342 847.07


2012


12

Category Consumer Category No. of

Installations

Energy

Sold in MU

LT-7 Temporary Power Supply 212307 195.90

LT Total 18066815 29808.11

HT-1 HT Water Supply 500 1106.98

HT-2(a) HT Industries 7406 7463.46

HT-2(b) HT Commercial 5743 3087.42

HT-3(a) &

(b)

HT Irrigation & LI Societies 360 247.26

HT-4 Res. Apartments 383 177.19

HT Total 14392 12082.31

Total 18081207 41890.42

Source: DCB furnished by the ESCOMs

Category wise Number of Installations in FY12

Domestic77%

Commercial8%

Industries2%

Agriculture11% Others

2%

Category wise consumption-FY12

Domestic21%

Commercial13%

Industrial22%

Agriculture37%

Others7%


2012


13

5.4.3 NCE PPAs approved during FY12:

The ESCOM wise gist of PPAs approved by the Commission during FY12 are as follows:

ESCOMs wise Details of PPAs Approved & Energy Purchased from Non-Conventional Power Projects During FY-12

MINI HYDEL WIND MILL BIOMASS CO-GEN SOLAR OTHERS TOTAL

SL

No ESCOMS Total

No of

PPAs

Capa

city in

MW

Total

No of

PPAs

Capacity

in MW

Total

No of

PPAs

Capacity

in MW

Total

No of

PPAs

Capa

city in

MW

Total

No of

PPAs

Capacity

in MW

Total

No

of

PPAs

Capa

city in

MW

Total

No of

PPAs

Capa

city in

MW

RPO for

RE

Sources

Total

Energy

purchased

from all

Sources

Energy

purchase

from RE

Sources

R P O

Com

pliance

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1 BESCOM 1 6.00 4 27.75 0 0.00 0 0.00 0 0.00 0 0.00 5 33.75 0.10 27529.00 3188.00 0.1158

2 MESCOM 0 0.00 9 71.25 0 0.00 0 0.00 0 0.00 0 0.00 9 71.25 0.10 4734.69 599.43 0.1266

3 CESC 1 1.50 4 15.00 0 0.00 0 0.00 0 0.00 0.00 0.00 5.00 16.50 0.10 5684.31 707.19 0.1244

4 HESCOM 0 0.00 3 27.20 0 0.00 3 21.73 0 0.00 0 0.00 6 48.93 0.07 8630.82 830.88 0.0963

5 GESCOM 0 0.00 4 6.70 0 0.00 0 0.00 0 0.00 5 85.40 9 92.10 0.07 7174.05 486.60 0.0678

Total 2 7.50 24 147.90 0 0.00 3 21.73 0 0.00 5 85.40 34 262.53 0.44 53752.87 5812.10 0.5309


2012


14

6. IMPORTANT EVENTS DURING THE YEAR

� Tariff Orders in respect of ESCOMs and Hukeri RECS for FY12 has been issued.

� Regulations / amendments issued in respect of tariff Regulations, Recovery of

Expenditure and introduction of REC and RPO.

� Tariff has been determined for the proposed Waste to Energy project in

Bangalore.

� One day workshop held by the Commission to discuss HVDS and DSM.

� Three advisory committee meetings held during the year to discuss various

important issues for improving quality of power supply.

� 48 internal meetings held to decide on various issues pertaining to the sector.

� 72 cases for adjudication of disputes heard and disposed off during the year.

� Pooled cost has been notified and procedure for REC accreditation has

been approved.


2012


15

7. ACTIVITIES OF THE COMMISSION IN 2011-12

1. The Commission has issued the Tariff Orders dated 28.10.2011 in respect of all

Electricity Supply Companies (ESCOMs) in the State. As against an Annual

Revenue Requirement (ARR) of Rs. 21,316 Crs for estimated sales of 43843 MU

for the year 2011-12 sought by ESCOMs, the Commission has approved an

ARR of Rs.19,902 Crs for approved sales of 42,376 MU. As against 88 paise per

unit hike in tariff sought by the ESCOMs, the Commission has allowed an

increase of only 28 paise per unit. Additional revenue of Rs.1171 Crs was

made available to the ESCOMs for the year 2011-12 on account of this

revision in Tariff.

2. In order to reduce the existing levels of distribution losses, the Commission has

directed the ESCOMs to introduce High Voltage Distribution System (HVDS)

besides expediting the feeder separation works under the Niranthara Jyothi

Yojana.

3. With a view to improving better consumer service, ESCOMs are directed to

introduce adequately equipped ‘Service Centres’.

4. The Commission has determined a levelised tariff of Rs.4.15 per unit for 20

years for the proposed waste to energy project at Mandur village in

Bangalore.

5. The Commission has issued the Regulations/ Amendment to existing

Regulations in the following matters:

a. Amendment to KERC (Procurement of Energy from Renewable Sources)

Regulations 2011:

KERC (Power Procurement from Renewable Sources by Distribution Licensee

and Renewable Energy Certificate Framework) (First Amendment)

Regulations, 2011 has been issued by the Commission on 20.12.2011, which

was published in the Gazette on 02.01.2012. The highlight of the amended

Regulations is that it defines the pooled cost of purchase as the weighted

average pooled price at which the State distribution licensees put together

have purchased the electricity including cost of self generation, if any, in the

previous year from all energy suppliers excluding those based on renewable


2012


16

energy sources. Further, the amended regulations specify that obligation to

purchase electricity from solar energy should be fulfilled by purchase of solar

RECs only.

b. Introduction of Renewable Energy Certificates (REC) and Renewable purchase Obligations (RPO).

The Commission notified the pooled cost as Rs.2.73/unit for the financial year

FY2012 vide notification-dated 01.02.2012, which was published in the

gazette of Karnataka on 13.02.2012. Subsequently, as an interim measure the

pooled cost has been continued at Rs.2.73/unit vide notification-dated

29.03.2012, which was published in the gazette of Karnataka on 29.03.2012.

The above pooled cost is continued till 30th June 2012 or till the issue of

further notification by the Commission, whichever is earlier.

The Commission approved the detailed procedure for REC accreditation

during the year. The Steps involved in accreditation are as under:

•STEP-1: An application for availing accreditation shall be made by the

generating Station to the State Agency(SLDC) in the specified format.

•STEP-2: The State Agency viz; The State Load Despatch Centre (SLDC) shall

assign unique acknowledgement number to the Applicant for each

application for Accreditation of its RE generation project, for any future

correspondence.

•STEP-3: After the receipt of application for Accreditation, the State Agency

shall conduct a preliminary scrutiny to ensure that the Application Form is

complete in all respect along with necessary documents and applicable

non-refundable processing fee.

•STEP 4: After conducting the preliminary scrutiny within 7 days, the State

Agency shall direct in writing to the Applicant to submit any additional

information, if necessary.


2012


17

•STEP-5: State Agency to verify and ascertain availability of information/

document with regard to following documents.

i. Availability of land,

ii. Power evacuation permission,

iii. Metering arrangement,

iv. Copy of off take of power or PPA ,

v. Fossil fuel usage undertaking,

vi. Proposed model and make of equipment meeting IEC, BIS & CEA

standards.

vii. Details of processing fees

•STEP-6: The State Agency, after duly inspecting/verifying the application

with respect to its compliance with the conditions elaborated in Step 5,

shall direct the applicant to Pay the accreditation charges and upon

receiving the said charges shall grant ‘Certificate for Accreditation’ which

will be valid for Five Years.

•Process of accreditation to be completed within 30-days from the date of

receipt of complete information by the SLDC.

•STEP-7: On grant of accreditation, the SLDC will intimate the same with

necessary details to the following entities,

a. KERC.

b. Central Agency (National Load Despatch Centre - NLDC).

c. Concerned Distribution Licensee in whose area the proposed

RE generation project is / will be located.

d. State Transmission Utility.

c. Amendment to Tariff Regulations:

The Commission has notified amendments to KERC (Tariff) Regulations, 2000

on 1st February 2012. The amended Regulations provide for 30 days time for

filing objections, adoption of depreciation as per the rates prescribed by


2012


18

CERC from time to time, 15.5% RoE per annum grossed up with allowable

MAT (Minimum Alternative Tax) or applicable income tax and allowable

interest on working capital.

d. Amendment to KERC (Recovery of Expenditure for Supply of Electricity)

Regulations, 2004.

The Clause 3.1.5 of the Regulations has been amended with effect from 7th

September 2011. The Amendment has been issued to bring in clarity on

assessment of built up area when buildings share the common wall or

common roof but have separate khathas or site / land ownership in different

names.

6. The Commission has conducted a one day workshop to discuss HVDS and

Demand side Management (DSM). Speakers from Andhra Pradesh

Distribution Company, leading consultancy firms and experts in power

sectors made presentations and shared their experience on HVDS & DSM.

Managing Directors of ESCOMs and Officers of KPTCL/ESCOMs participated

in the discussions.

7. The Commission has notified pooled cost for the purpose of REC and has

designated State Load Dispatch Centre (SLDC) as the nodal agency.

8. The Commission has held 3 Meetings of the Advisory Committee wherein

measures related to bridging the gap between demand and supply, revision

of tariff, strategies for reduction of Aggregate Technical & Commercial

(AT&C) losses and use of solar power for rural and stand alone systems were

discussed.

9. The Commission has held 48 internal meetings to decide various issues

pertaining to the Sector.

10. The Commission received 74 petitions for adjudication of disputes during the

year apart from the opening balance of 43 petitions. The Commission

disposed off 72 petitions and there were 45 petitions pending as at the end

of the year.


2012


19

7.1 Tariff Order for ESCOMs

a) ANNUAL PERFORMANCE REVIEW FOR FY11

As per the provisions of KERC (Terms and Conditions for Determination of

Transmission Tariff) Regulations 2006 (MYT Regulations), ESCOMs had filed an

application on 15.06.2011, for Annual Review of Performance for the Financial

Year 2010-11.

The Commission carried out the Annual Review of Performance for FY11 on the

basis of Audited Accounts furnished by ESCOMs as per the Multi Year Tariff (MYT)

Regulations. The aggregate net deficit of Rs.869.80 Crores for FY11 has been

factored in while determining the ARR for FY12.

7.2 DETERMINATION OF DISTRIBUTION & RETAIL SUPPLY TARIFF OF ESCOMs FOR FY12

The ESCOMs had filed applications for revision of tariff for FY12 on 15th June 2011.

ESCOMs had submitted that they were filing the ERC & Tariff revision

applications on account of overall increase in the cost of operations and in the

cost of power purchase and other expenses. The details of the Revenue,

expenses, revenue deficit, and increase in the tariff sought, as per the

application filed by the ESCOMs for FY-11, are as under:

Proposed ARR

Rs. In Crores

Particulars BESCOM MESCOM CESC HESCOM GESCOM Total

Total Expenditure (ARR) 11973.02 1782.03 1860.56 3246.85 2453.18 21315.64

Total Revenue at the

existing rates as per filing 10307.71 1527.38 1804.89 3151.06 2273.12 19064.16

Revenue Gap as

proposed -1665.31 -254.65 -55.67 -95.79 -180.06 -2251.48

Increase in Tariff sought –

Paise per unit 88 88 88 88 88 88

Additional Revenue

through tariff Revision 1614.33 224.1 218.44 283.36 164.55 2504.78

Percentage increase

sought 16% 15% 12% 9% 7% 13%

Average Cost of supply

on proposed ARR - Rs per

unit 5.15 5.00 4.27 4.40 4.63 4.86


2012


20

The Commission, after preliminary examination of the proposals, had sought

additional information/clarifications on several issues. The Commission had also

invited objections from the general public/ consumers and other stakeholders. In

addition, Public hearings were held in the Headquarters of all the Companies to

elicit further views of the consumers and others.

After following due process of consultation and after considering the petitions

and information furnished by the ESCOMs and the submissions of the consumers

/ general public, the Commission issued the tariff orders in respect of all the five

distribution companies. While determining the tariff, the Commission kept in

view the financial position of the ESCOMs and the paying capacity of each

class of consumers and other relevant factors to ensure that, the orders are fair

and reasonable to all the stakeholders. A gist of the orders indicating the

approved ARR and the revised revenue for FY11 is given below:

Summary of ARR

Rs. In Crs.

Particulars BESCOM MESCOM CESC HESCOM GESCOM Total

Approved Expenditure

(ARR) 10406.83 1571.51 1986.63 3662.44 2274.28 19901.69

Sales-MU 21911.42 3480.5 4207.51 7647.45 5129.19 42376.07

Average Cost at Full ARR

Rs/unit 4.75 4.52 4.72 4.79 4.43 4.70

Regulatory Asset[RA] 91 10 120 130 50 401

Revised allocation of

Subsidy 586.25 193.44 595.37 1693.5 791.44 3860

Additional Subsidy

required by GoK 20.84 75.44 -5.88 132.51 73.24 296.15

Total Subsidy payable by

GoK 607.09 268.88 589.49 1826.01 864.68 4156.15

Additional Revenue

through tariff Revision 597.52 143.46 53.27 233.23 143.62 1171.1

As indicated in the above Table, the total approved ARR of ESCOMs was

Rs.19902 Crores. The revision of tariff allowed an additional revenue of Rs.1171

Crores and the Government subsidy was increased from Rs.3860 Crores to

Rs.4156 Crores. The unmet gap of Rs.401 Crores which was treated as


2012


21

Regulatory Asset in the previous tariff order to be recovered in FY13 was

continued as regulatory asset for FY13.

The Revised Tariff came into effect from 28th October 2011.

7.3 Salient Features of the Tariff Order 2011 in respect of ESCOMs:

a. In order to reduce technical and commercial losses in the distribution system,

the Commission has directed each of the ESCOMs to implement high

voltage distribution system (HVDS) in atleast in one division in a rural area

during FY12.

b. In view of the need for conserving energy, each of the ESCOMs are directed

to take up demand side management works in agriculture like replacement

of inefficient pumps with energy efficient pumps approved by the Bureau of

Energy Efficiency in atleast one sub division during FY12.

c. The ESCOMs have been directed to complete NIranthara Jyothi Yojana in

order to provide adequate and quality power supply to rural areas.

d. In order to improve the quality and reach of service and adoption of a

customer oriented approach in business, the ESCOMs have been directed to

introduce well equipped service centres, recruit additional staff and provide

necessary training to field level staff.

e. The Commission has introduced the concept of strategic business unit in

order to bring in accountability on the part of the field level functionaries

for maximizing the sale of power and minimizing the AT & C losses.

Annual Performance Review for FY10 & FY11, Approval of ERC for FY12 & FY13

and retail supply tariff for FY12:

Hukeri RECS had filed its application for approval of its Annual Performance

Review for FY10 on 10th December 2010 & approval of APR for FY11, ERC for FY12

& FY13 and retail supply tariff for FY12 on 21st March 2011. The Commission held

a public hearing in the matter on 19th July 2011 at Hukeri and issued the tariff


2012


22

order dated 7th December 2011. As per this tariff order the tariff applicable in

other ESCOMs has been extended to Hukeri RECS area also. The Commission

has determined an ARR of Rs.71.94 Crores for FY12 for the Society duly

considering the surplus carried forward from FY10 & FY11. The Commission has

also set aside an amount of Rs.1.60 Crores as regulatory asset to be recovered in

FY13.

7.4 Meetings of the Commission

The Commission held 48 meetings to discuss various issues of the sector during

the year. The following are some of the important subjects discussed in the

Commission’s meeting.

1. Approval of transmission agreement between ESCOMs / Open access

consumers with KPTCL

2. Approval of Retail tariff for distribution licensees

3. Determination of Tariff for Waste to Energy Project

4. Compliance by ESCOMs on the directives issued by the Commission in

its Tariff orders

5. Review of power position in the State.

6. Approval of ERC / Retail supply tariff of Hukeri Society for FY12 & FY13.

7. Approval of bidding documents proposed by PCKL and other related

issues.

8. Issue of new Regulations and Amendments to existing Regulations


2012


23

8. ADVISORY COMMITTEE OF THE COMMISSION

8.1 Provisions under Electricity Act 2003:

In pursuance of the provisions contained in Section 34 of KER Act 1999 and

Section 87 of the Electricity Act 2003, the Commission has established a State

Level Advisory Committee to advise the Commission on:

i) major questions of policy.

ii) matters relating to quality, continuity and extent of service provided by

the Licensees.

iii) compliance by Licensees with the conditions and requirement of their

licence.

iv) protection of consumers interest.

v) electricity supply and overall standards of performance by utilities.

A List of the present Members of the Advisory Committee is placed in Annex- 3.

The new Members included during the year are:

1. Prof. H.P. Khincha. Former Vice Chancellor, Visvesvaraiah Technological University.

2. President, KASSIA, Bangalore

3. Sri Raja Rao, Bangalore

The Commission has continued Sri Sathyanarayana Udupa as Member for a

second term.

The Commission has included the Chief Engineer, SLDC, KPTCL Bangalore as an

invitee.

List of members whose term expired during the year are:

1. The President, KEB Engineers Association, Bangalore

2. Sri M.G.Prabhakar, Bangalore

3. Sri Venkata Subba Rao, Bangalore


2012


24

8.2 Brief Account of the Important Issues Discussed in the Meetings

During the year, three meetings of the Advisory Committee were held.

In the 31st meeting held on 1st July 2011, discussions were held on the plan /

preparation of ESCOMs to meet the energy demand in FY12. The Committee

also deliberated on making Time of Day Tariff (ToD) mandatory. Further, the

Commission discussed on promotion of solar water heaters and roof top solar PV

systems.

In the 32nd Meeting held on 26th September 2011, the committee discussed the

ERC and Tariff filings made by ESCOMs. The discussions included sales

projection, items of expenditures like cost of power procurement, O & M cost

and CAPEX. The Committee urged all ESCOMs to achieve substantial loss

reduction commensurate with the proposed CAPEX. Further, the Committee

discussed the following issues:

1. Introduction of HVDS and Rural feeders

2. Optimizing installed capacities of DTCs

3. DTC metering and energy auditing

4. Introduction of strategic business unit concept at divisional level

5. Improvement of consumers services

a) Conducting regular consumer interaction meetings.

b) Re-organization of staffing pattern

6. Re-introduction of cross subsidy surcharge

7. Mandatory ToD for HT1, HT2 (a) and LT5 categories.

In its 33rd meeting held on 3rd January 2012, the Committee reviewed the status

of demand and supply of power from April 2011 to November 2011 and

projections for the remaining months of the financial year 2012 and for the

financial year 2013. The Committee discussed the various directives issued by

the Commission in its tariff order for improving the quality and reliability of supply

besides improving the efficiency of ESCOMs.


2012


25

9. IMPLEMENTATION OF THE RTI ACT:

Status of applications / appeals received and disposed of during 2011-12 under

the Right to Information Act, 2005:

The following is the status of applications/appeals received and disposed of

during 2011-12 under the Right to Information Act, 2005:

No. of

Applications

received

No. of

applications

disposed off

Total fee

collected

No. of

Appeals

received

No. of

Appeals

disposed off

74 74 Rs. 886/- 2 2

The Appellate Authority under the RIGHT TO INFORMATION ACT,2005 is:

Secretary,

Karnataka Electricity Regulatory Commission,

9/2, Mahalakshmi Chambers, 7th floor,

M G Road,

Bangalore 560 001

Phone No. 25320213

Fax No. 25320338

The PUBLIC INFORMATION OFFICER under the RTI ACT is:

Assistant Secretary,

Karnataka Electricity Regulatory Commission,

9/2, Mahalakshmi Chambers, 6th floor,

M G Road,

Bangalore 560 001

Phone No. 25320210

Fax No. 25320338


2012


26

10. BUDGET & ACTUAL EXPENDITURE OF THE COMMISSION

GRANTS RECIVED FROM THE GOVERNMENT DURING FINANCIAL YEAR 2011-12.

The following table shows the details of budget estimates and actual expenses

for 2011-12.

In Rs. Lakhs

Major Expenditure

Head

Budget

Estimate

Expenditure

for 2011-12

Variation

Establishment expenses 219.90 252.10 (-)32.20

Office Expenses 188.40 151.39 (+)37.01

Total 408.30 403.49 (+)4.81

The State Government provided a total grant of Rs.408.00 lakhs to the Commission

during the financial year 2011-12. The same has been drawn from the Government. The

expenditure of 403.49 lakhs was met out of Government grants and License/ Tariff

Application fees. An amount of Rs. 159.35 lakhs is deposited in personal deposit

account at the Treasury.


2012


27

11. ADMINISTRATION:

The office of the Commission consists of permanent employees besides officials

on deputation and on contract basis. The total working strength of the

Commission as at the end of the financial year 2011-12 is 50. At present the

Commission consists of :

04 Permanent employees’ consequent to absorption of services,

20 Officials on deputation basis,

23 Officials on contract basis, and;

03 Consultants on contract basis

The details are as follows:

PERMANENT EMPLOYEES:

Sl. No. Name Designation

01 H S Sheshadri Dy. Director (Transmission)

02 K M C Mallikarjuna Assistant

03 P R Gopinath PS to Chairman

04 B S Rathna Kumar Data Entry Operator

OFFICIALS ON DEPUTATION BASIS:

Sl. No. Name Designation Department

01 T A Parthasarathy, IAS Secretary DPAR, GoK

02 B R Nagaraju Director (Technical) KPCL

03 V G Pandit Director (Tariff) KPTCL

04 B R Manjunath Dy. Director (D F) KPTCL

05 Y K Nagaraj Dy. Director (Generation) KPTCL

06 Vinod G Havangi Dy. Director KPTCL

07 Prabhakar Rao Dy. Director (Tariff) KPTCL


2012


28

Sl. No. Name Designation Department

08 M R Prahlad Dy. Director (Admin)

Karnataka Govt.

Secretariat

09 Srinivasappa Dy. Director (Distribution) KPTCL

10 Umashankar Senior Financial Analyst KPTCL

11 B L Venkataravanappa AO KPTCL

12 K S Rajeshwari Office Manager KSFC

13 C Ramaswamy Asst. Manager KSFC

14 B R Puttaswamaiah PA to Secretary KSFC

15 Smt Shobha Shivakumar PA to Member (H) JL&R Ltd.,

16 M P Manjunath PA to Ombudsman KSFC

17 J P Ramesh Assistant KFDC Ltd.,

18 Kavitha L Assistant Karnataka Govt.

Secretariat

19 B Rajendra PA to Ombudsman KSFC

20 Mahendra Kumar Driver KSFC

OFFICIALS ON CONTRACT BASIS:


01 Jayaramaraje Urs, IAS (Retd.) Ombudsman

02 Smt G Kalpana Asst. Secretary

03 Rangarajan Komandur Narasimha

Iyengar PS to Chairman

04 N M Krishnakumar Asst. Accounts Officer

05 S N Atmaramegowda Asst. Accounts Officer

06 M Bharat Kumar PS to Ombudsman

07 S Hemalatha Receptionist

08 S Lingaraju Driver

09 D Manjunath Driver

10 B Devandran Driver

11 K Shankar Rao Driver


2012


29


12 R Sridhar Group ‘D’ employee

13 B C Sunil Kumar Group ‘D’ employee

14 H Raju Group ‘D’ employee

15 V Manikanthan Group ‘D’ employee

16 N Ramanna Group ‘D’ employee

17 M Manivannan Group ‘D’ employee

18 C Krishna Group ‘D’ employee

19 Padmavathi Group ‘D’ employee

20 Srikanth S S Group ‘D’ employee

21 Jagadish Group ‘D’ employee

22 Lakshmi Group ‘D’ employee

CONSULTANTS:


01 G V Hegde Consultant (Legal)

02 Y G Muralidharan Consultant (Consumer Advocacy)

03 Dr Chandrashekar Medical Consultant

PARTICULARS OF OFFICERS DEPUTED FOR TRAINING AND SEMINAR

The following Officers were deputed to attend training / conference / seminars

during the year on various subjects in the power sector:

Sl.

No Name & Designation Period Venue

Subject of the Training /

Conference/ Seminar

01

Shri H S Sheshadri,

Dy. Director

(Transmission)

25.04.2011

Southern

Regional

Load

Despatch

Centre,

Bangalore

REC Mechanism for Southern

Region


2012


30

Sl.



Conference/ Seminar

02 Shri B R Nagaraju,

Director (Technical) 21.06.2011 New Delhi

Distribution Sector Reforms –

Key to Power Sector

Sustainability

03

Shri Vinod G

Havanagi

Deputy Director

01.08.2011

-

05.08.2011

CIRE,

Hyderabad

Training Programme on

“Open Access, Power

Trading and Tariffs – ABT

Scenario

04

a) Shri B R Nagaraju,

Director

(Technical)

b) Shri Y K Nagaraj,

Dy. Director

(Generation)

18.07.2011

-

23.07.2011

IIT, Kanpur

FOR’s 4th Capacity Building

Programme for Officers of

Electricity Regulatory

Commission

05 Shri B R Nagaraju,

03.08.2011

-

04.08.2011

Bangalore

Two Day International

Conference on ‘Roadmap

for Smart Grid’

06

Shri Y K Nagaraj, Dy.

Director

(Generation)

18.10.2011

-

20.10.2011

Hyderabad Development of Smart

Power Grids

07


Director

(Technical)

b) Shri B R

Manjunath,

Dy. Director (DF)

c) Shri H S Shehsadri,

Dy.Director (Trans)

14.11.2011 Viventa Taj,

Bangalore

Seminar on Renewable

energy Export initiative

08

Shri Vinod G

Havanagi, Deputy

Director

19.12.2011

-

23.12.2011

PSTI,

Bangalore

Substation Planning &

Engineering

09 Shri Sreenivasappa,

Dy. Director

21.11.2011

-

25.11.2011

PSTI,

Bangalore

Energy Efficiency in Electrical

Utilities

10 Shri Y K Nagaraj, Dy.

Director (Gen)

12.12.2011

-

16.12.2011

PSTI,

Bangalore HVDC Transmission System


2012


31

Sl.



Conference/ Seminar

11


Director (Tech)

b) Shri

Sreenivasappa,

Dy. Director

07.12.2011

-

10.12.2011

Hyderabad

Training programme on “

Reactive Power

Management”

12

Y K Nagaraj, Dy.

Director

(Generation)

27.12.2011

-

30.12.2011

Hyderabad “Power Purchase

Agreement”

13 Y K Nagaraj, Dy.

Director (Gen) 31.01.2012

Casuarina

New Delhi

Large Scale Deployment of

Smart Grinds : Opportunities

and Strategies

14

a) Shri Vinod G

Havanagi, Deputy

Director

b) Shri Srinivasappa,

Dy.Director

(Distribution)

16.02.2012

-

17.02.2012

CPRI,

Banglaore

Competitive Electricity

Markets & Regulatory Frame

Work-issues and Challenged


2012


32

12. COMMISSION’S COURT

The Commission generally holds court proceedings on Thursday of every week

besides conducting public hearings from time to time on issues to be decided

by the Commission.

The details of petitions for resolution of disputes filed before the Commission

during the year and their status are indicated below:

Sl.No. Details of cases Total

1 No. of cases pending up to 31.03.2011 43

2 Total No. of cases filed during the year 74

3 No.of cases disposed during the year 72

4 Cases pending as at the end of the year 45

The Details of Petitions, Complaints, Review Petitions and other cases disposed

during the period from 1st April 2011 to 31st March 2012 are as follows:

Sl.

No. Case No.

Date of

filing Parties Subject

Date of

disposal

1 O.P.34/06 On

remand

Bhagyanagar Solvent

Extraction (P) Ltd – vs –

Government of Karnataka &

Others

Increase in tariff 13.01.12

2 O.P.11A/07 HESCOM vs Nil Revision of PPA 01.02.12

3 O.P.4/09 30.01.09 Jamkhandi Sugars vs KPTCL

& another

Payment of interest 07.04.11

4 O.P.9/09 08.04.09 Jindal Alluminium Ltd.,vs

KPTCL and anaother

PPA 02.06.11

5 O.P.34/09 07.09.09 HESCOM vs GMR Industries

Ltd., Bangalore

Open Access 02.06.11

6 O.P.46/09 02.12.09 India Cane Power Ltd., vs

KPTCL & anr.

Short payment 13.06.11

7 O.P.21/10 27.04.10 V B C Ferro Alloys Ltd., &

others vs Power Company of

Karnataka Ltd., and Others

Dispute reg.supply of

power

22.12.11

8 O.P.24/10 27.05.10 Subhash Kabini Power

Projects Ltd., & KPTCL &

others

Appointment of

Arbitrator

07.04.11


2012


33

Sl.

No. Case No.

Date of


Date of

disposal

9 O.P.33/10 16.08.10 JSW Steel Ltd., vs Chief

Electrical Inspectorate of

Government

To decide captive

status

07.07.11

10 O.P.34/10 16.08.10 JSW Energy & anr ., vs Chief

Electrical Inspectorate of

Government

Against the orders of

the Elecl.

Inspectorate

07.07.11

11 O.P.35/10 07.09.10 GESCOM Vs JSW Steel Ltd., To decide captive

status

07.07.11

12 O P 46/10 29.11.10 Coromandel Sugars Ltd vs

CESC

Renewal of PPA &

payment for energy

06.03.12

13 O.P.47/10 29.11.10 Cauvery Hydro Energy Ltd.,

vs KPTCL & another

Revision of wheeling

and banking charges

02.06.11

14 O.P.48/10 06.12.10 BESCOM Ltd vs VBC Ferro

Alloys Ltd.,

Supply of power as

per PPA

13.01.12

15 O.P.1/11 22.12.10 Nectar Beverages Pvt. Ltd.,

vs HESCOM & others

Regarding damages 21.04.11

16 O.P.2/11 11.01.11 MPPL Renewable Energy Pvt

Ltd., vs KPTCL & another

To declare PPA has

come to an end and

for open access

19.05.11

17 O.P.4/11 15.01.11 Ugar Sugar Works Ltd., vs

KPTCL & others

Payment for the

energy delivered

29.03.12

18 O.P 5/11 26.01.11 Davanagere Sugar

Company Ltd., vs BESCOM &

others

Payment for energy

delivered

21.04.11

19 O.P.6/11 27.01.11 Bhoruka Power Corporation

Ltd.., vs HESCOM

Payment for the

energy delivered

30.06.11


Ltd.., vs GESCOM

Payment for the

energy delivered

30.06.11


Ltd.., vs GESCOM

Payment for the

energy delivered

30.06.11

22 O P 9/11 14.02.11 Indowind Energy Ltd., vs

SLDC

Wheeling & Banking 08.09.11

23 O P 10/11 14.02.11 Indowind Energy Ltd., vs

SLDC

Wheeling & Banking 08.09.11

24 O P 11/11 03.03.11 Reliance Infrastructure Ltd vs

BESCOM & anr.

Payment for the

energy delivered

29.03.12


2012


34

Sl.

No. Case No.

Date of


Date of

disposal

25 O P 12/11 31.03.11 Sree Doodhaganga Krishna

Sahakari Sakkare Karkhane

Niyamitha Vs KPTCL & others

Grant of open access 08.09.11

26 O P 14/11 31.03.11 Srinivasa Gayatri Resource

Recovery Ltd Vs BESCOM &

others

Determination of tariff

and approval of PPA

28.02.12

27 Complaint

1/11

01.04.11 Wing Com. G B Atri Retd vs

BESCOM

Compensation 22.12.11

28 Complaint

2/11

08.04.11 KASSIA & others vs BESCOM Blanket power shut

down

11.08.11

29 O.P.15/11 09.04.11 R.K.Rangrej – vs – HESCOM Compulsory

installation of solar

water heaters

11.08.11

30 O P 17/11 05.05.11 R K Rangrej – VS – HESCOM Reg. providing ABC

cables

14.07.11

31 O P 18/11 09.05.11 Koppal Green Power Ltd vs

GoK & others

Recovery of excess

payment

14.07.11

32 Complaint

3/11

21.04.11 Muffadel Timber & Allied

Products Pvt Ltd vs CESC

Interruptions of power

supply

04.08.11

33 O P 19/11 31.05.11 Parrys Sugar Industries Ltd vs

HESCOM

Payment 25.08.11

34 Complaint

5/11

01.06.11 Ravi Products vs AEE,

BESCOM & others

Framing of

regulations for

preferring appeals

22.12.11

35 O P 20/11 01.06.11 MPPL Renewable Energy Pvt

Ltd vs MESCOM & anr.

Payment 12.12.11

36 O P 21/11 06.06.11 Janki Corp Ltd vs GESCOM Payment 04.08.11

37 Complaint

6/11

08.06.11 Ion Batteries vs CGRF &

others

Compensation for

illegal disconnection

14.07.11

38 Complaint

7/11

20.06.11 KIOCL vs KPTCL & another Dismantling of 220 KV

transmission line

13.01.12

39 O P 24/11 21.06.11 Sree Rayalaseema Alkalies &

Allied Chemicals Ltd., &

others vs KPTCL & others

Tax liability 24.11.11

40 O.P.25/11 17.06.11 CAMPCO vs GESCOM & Ors Reg: use of Captive

energy

15.03.12


2012


35

Sl.

No. Case No.

Date of


Date of

disposal

41 Complaint

8/11

22.06.11 Vishwas Construction

Industries Pvt Ltd., vs BESCOM

Compensation 29.03.12

42 O.P.27/11 21.06.11 Ambuthirtha Power Pvt. Ltd.,

- vs - MESCOM

Implementation of

Order in O.P.22/09-

Water Year

13.01.12

43 O.P.29/11 11.07.11 BMM Ispat Ltd., vs GESCOM Payment for energy

delivered

13.01.12


delivered

29.09.11


delivered

13.01.12

46 O.P.33/11 22.08.11 BMM Ispat Ltd., vs KPTCL Evacuation approval 29.09.11

47 O.P.35/11 24.08.11 Sanjay.D.Ghodawat vs

HESCOM

Payment for energy

delivered

08.03.12

48 O.P. 36/11 24.08.11 Sanjay.D.Ghodawat vs

HESCOM

Payment for energy

delivered

08.03.12

49 O P 37/11 24.08.11 Sanjay.D.Ghodawat vs

HESCOM

Payment for energy

delivered

08.03.12

50 O P 38/11 12.09.11 Bhoruka Aluminium Ltd vs

KPTCL & others

Upgradation of

supply

13.10.11

51 O.P.39/11 26.09.11 Vijayalakshmi Hydro Power

Pvt.Ltd., vs CESC

Payment after 10th

year period

15.03.12

52 O.P.41/11 15.09.11 Hemavathy Power and Light

Pvt.Ltd., vs CESC & anr.

Payment for the

energy delivered

01.02.12

53 O.P.44/11 26.09.11 Falcon Tyres Ltd., vs State

Load Despatch Centre

UI charges 15.03.12

54 O.P.46/11 11.10.11 BESCOM VS NIL Reg. Fixation of

Green Tariff for all

consumers

12.12.11

55 O.P.48/11 19.10.11 AMR Power Pvt.Ltd., vs

MESCOM & others

To Declare

termination of PPA

22.03.12

56 O.P.51/11 17.11.11 Sri Indra Power Energies Ltd.,

vs GESCOM Ltd.,

Payment after 10th

year period

29.03.12

57 O.P.52/11 16.11.11 Parrys Sugar Industries Ltd., vs

HESCOM & another

To grant

NOC/standing

clearance for open

access

12.12.11


2012


36

Sl.

No. Case No.

Date of


Date of

disposal

58 Complaint

9/11

16.11.11 Parys Sugar Industries Ltd., vs

HESCOM

Disobedience of

Orders of Commission

22.12.12

59 O.P.53/11 09.12.11 Master Power Vs KPTCL &

Another

Payment after 10th

year period

29.03.12

60 O.P.54/11 29.12.11 Graphite India Ltd., vs

MESCOM & another

Payment after 10th

year period

08.03.12

61 S/09/1 On

remand

SISMA vs KPTCL & Others Determination of

captive cost

29.03.12

62 B/04/2 On

remand

BESCOM vs Nil Special Incentive

Scheme

24.11.11

63 D/7/06 On

remand

Bidar Rubber & Reclaims Pvt

Ltd., Vs GESCOM & ors

Payment of arrears 11.08.11

64 O.P.1/12 04.01.12 Sri Indra Power Energies Ltd

vs GESCOM Ltd.,

Payment for the

energy delivered

29.03.12

65 S/03/10 Maruti Power Gen India Pvt

Ltd., (Hemavathi) vs

MESCOM

Approval of PPA 13.01.12

66 R.P.1/11 07.03.11 Jasper Energy Ltd., vs

HESCOM & Others

To Declare PPA Null &

void

08.09.11

67

R.P.2/11 07.03.11 AMR Power Pvt.Ltd vs KPTCL

& Others

Review of Order in

OP 28/09

22.12.11

68 R.P.3/11 15.03.11 Sagar Power (Neerukatte)

Pvt.Ltd. vs KPTCL & Others

Review of Order in

O.P.24/09

22.12.11

69 R.P.4/11 25.04.11 MPPL Renewable Energy vs

MESCOM & anr

Review of Order in

OP 23/10

08.09.11

70 R.P.5/11 29.07.11 Bhoruka Power Corp. Ltd., vs

GESCCOM

Review of Order in

OP 8/11

19.12.11


GESCCOM

Review of Order in

OP 7/11

19.12.11


HESCOM

Review of Order in

OP 6/11

13.02.12


2012


37

13. ACTIVITIES OF OMBUDSMAN

The Present Ombudsman Sri Jayaranaraje Urs, IAS, assumed charge on

20.04.2011. 23 cases were pending at the beginning of the year and during the

year, 18 cases were registered, thus totalling 41 cases.

Out of these, 25 cases have been disposed off during the year leaving a

balance of 16 cases. The gist of grievances of the cases disposed, pertained to

back billing arising out of defective meters, meter-not-recording, fast recording

& slow recording, claiming of compensation for not meeting the Standards of

Performance, failure to adhere to Conditions of Supply of Electricity of

Distribution Licensees in the State of Karnataka etc.. Of the above cases, 14

cases have gone in favour of Consumers and 11 cases in favour of the

Distribution Licensees.

The cases registered and disposed off by the Electricity Ombudsman are as

under:

Name

Complaints

Brought Forward

From FY10-11

Complaints

Registered

during FY

11-12

Total

Complaints

Disposed off

during FY

11-12

Balance

As on

31.03.12

Electricity

Ombudsman

23

18

41

25

16

As per the K.E.R.C.’s orders, the Distribution Companies earmarked funds for

Consumer Education during 2010. During 2011-12, the Commission issued

guidelines to the Distribution Companies to implement the Consumer Education

Programme which included creation of awareness among the consumers and

giving publicity regarding the availability of various grievance redressal

mechanisms. The Electricity Ombudsman was asked to oversee the

implementation of Consumer Education Programme and submit a quarterly

report to the Commission. The Electricity Ombudsman discharged the

supervisory responsibility in addition to his regular work. Distribution Companies

initiated implementation of Consumer Education Programme during 2011-12.


2012


38

14. CONSUMER GRIEVANCE REDRESSAL FORUMS:

The five ESCOMS in Karnataka have established the electricity Consumers

Grievance Redressal Forums to redress consumer grievances in the area of each

ESCOM. These forums have been passing orders in the matters of grievances

filed before them and giving relief to consumers.

14.1 Working of the CGRF

The details of ESCOM wise complaints received and disposed of by the CGRF

during 2011-12 are indicated below:

ESCOM

Opening

Balance

as on

01.04.2011

Complaints

received

during the

year

Total

Complaints

disposed of

during the

year

Balance as on

31.3.2012

BESCOM 22 94 116 48 68

MESCOM 3 11 14 9 5

HESCOM 4 13 17 8 9

GESCOM 11 29 40 9 31

CESC 0 12 12 6 6

TOTAL 40 159 199 80 119


2012


39

15. ACTIVITIES OF OFFICE OF CONSUMER ADVOCACY

The Office of Consumer Advocacy (OCA) in the KERC was established in

September 2001 to protect and promote the interests of electricity consumers in

Karnataka. The main objective of OCA is to inform, educate and empower

consumers to enable them to participate in the electricity regulatory process.

The Commission believes that the benefits of regulation will reach the consumers

only when the consumers are able to articulate effectively and speak up for

their rights.

Since its inception the OCA has undertaken several initiatives to achieve the

objectives for which it has been established. It is acting as a catalyst to make

the consumers participate in the power sector reform process and at the same

time act as a countervailing force both on the Licensees and the Regulatory

Commission.

From 2011-12 there has been a paradigm shift in the activities of the OCA.

During the year the focus was on research and documentation of best

practices. The OCA has taken up evaluation studies, collection of data

pertaining to consumer problems, functioning of the Consumer Grievance

Redressal Forum (CGRF), Ombudsman etc. The OCA has obtained most of the

orders passed by the CGRF of the five ESCOMS and also the Ombudsman.

Based on the data obtained a compilation is being prepared. The compilation

with regard to Ombudsman is completed. The report of the orders of the CGRF

is in progress.

Consumer Information

The OCA is bringing out a bilingual (English and Kannada) newsletter

highlighting news and views of interest to electricity consumers. Aptly titled, the

newsletter ‘Consumer Power’ and ‘Vidyut Balakedara’ is being distributed to

over 500 consumer organisations, resident welfare associations, consumer

activists etc.


2012


40

Consumer Grievance Handling

Despite the fact the Licensees have established their own Consumer Grievance

Redressal Forums as required under the Electricity Act 2003 and the Regulations

made there under by the KERC, the OCA has been receiving complaints from

the consumers. The OCA is trying to facilitate the grievances by forwarding the

complaints to respective ESCOMS and following it up with the concerned

officials.

Review of Standards of Performance

Apart from attending to grievances the OCA is also involved in providing inputs

to the KERC for policy making. The OCA made a detailed study of the Standards

of Performance based on the quarterly reports submitted by the ESCOMS. A

consolidated report has been furnished to the KERC. The OCA has

recommended that the procedure for payment of compensation due to failure

of the ESCOMS to adhere to the standards needs to be reviewed.

Online Reporting

The Forum of Regulators (FOR) has established a portal in their website

www.forumofregulators.gov.in wherein details of the Consumer Grievance

Redressal Forum, Ombudsman, report of Standards of Performance etc. are to

be uploaded by each of the State Electricity Regulatory Commissions. The OCA

has submitted all the information/data required by the FOR.


2012


41

16. PROGRAMME FOR THE YEAR AHEAD

The following activities are in the plan of action envisaged for FY13:

1. Regulations for introduction of Fuel cost Adjustment Charges (FAC):

The Hon’ble ATE in its order in OP No.1/2011 dated 11th November 2011, has

directed to put in place a formula / mechanism for Fuel Cost Adjustment

Charges. In this regard, the Commission proposes to bring in Regulations for

collection of FAC from its consumers by the ESCOMs.

2. Benchmarking of Reliability Index:

As per Clause 5.13.2 of National Electricity Policy, the distribution licensee has

to indicate Reliability Index (RI) of supply of power to consumers. The

Commission has issued “Guidelines for Determination of Reliability Indices of

supply of power to consumers” on 15.12.2008. As per the National Electricity

Policy, the Commission is required to put in place a road map for declaration

of Reliability Index for all cities and towns upto District Headquarter towns as

also for rural areas. In view of the fact that data of RI for past three years

being available, the Commission proposes to benchmark Reliability indices

for towns and cities, District Headquarters and rural areas covering all the

areas of ESCOMs during the year 2012-13.

3. Amendment to REC Regulations:

It is proposed to amend the Clause pertaining to condition for accreditation

in respect of captive generation for obtaining REC to bring in greater clarity.

4. Revision of existing format of Wheeling and Banking Agreements:

ESCOMs and other stakeholders had requested for certain changes in the

existing wheeling and banking agreement. Keeping in view of the above, it

is proposed to revise the existing wheeling and banking agreement.


2012


42

5. Discussion paper on utilization of Bagasse based Co-generation plants

during off seasons using coal as fuel:

Bagasse based co-generation at present is classified as renewable source

and is allowed to use 15% coal on an annual basis as per the MNRE

guidelines. However during the off season these plants would be idling for

want of fuel for about two months. Keeping in view the present power

shortage situation it is suggested by some of the stake holders to allow use of

coal beyond 15% during off season so that the idle capacity is utilised. In this

context it is proposed to float a discussion paper in the matter to elicit views

from stake holders so that the idle capacity could be put to use.

6. Revision of standard format of PPA for NCE sources:

The Commission has issued a standard format of PPA for NCE sources some

time back. However, now some of the ESCOMs have suggested certain

modifications to be incorporated in the existing standard PPA. The

Commission proposes to revise a standard format of PPA.

7. Standard format of PPA for NCE sources with REC:

In view of the introduction of Renewable Energy Certificate (REC)

mechanism some of the generators have submitted the MoUs / PPAs

executed with ESCOMs for approval of the Commission. In order to establish

a uniform format in all the ESCOMs for such MoUs / PPAs, the Commission

proposes to introduce a standard format.

8. Studies undertaken / proposed to be conducted during the year:

a) Introduction of High Voltage Distribution System

The Commission in its tariff order dated 28th October 2011 has directed

the ESCOMs to introduce HVDS in atleast one division in a rural area

during FY12. The Commission has also issued practical guidelines for

implementation of HVDS. All the ESCOMs have initiated the process for

introduction of HVDS. The Commission proposes to conduct studies of

such system to identify improvements in loss reduction and quality and

reliability of supply in rural areas.


2012


43

b) Results of Niranthara Jyothi Yojanas:

The Commission in its tariff order dated 28th October 2011 has directed th

ESCOMs to complete the NJY programme during FY12. The Commission

proposes to conduct studies on the results of NJY and identify the

improvements in power supply to rural areas, IP sets and assess actual

consumption of IP sets etc.

c) Introduction of Strategic Business Unit Concept:

The Commission in its tariff order dated 28th October 2011 has directed

the ESCOMs to introduce system of strategic business unit at sub-division

level in atleast two divisions during FY12. This system has been

introduced to bring in accountability on field level functionaries. Such a

system would ensure improvements in billing and collection besides

reducing technical and commercial losses. The Commission proposes to

conduct studies to identify improvements in billing and collection as well

as reduction in technical and commercial losses.

d) Sustainability of Bio-mass based power generation:

The Commission proposes to conduct studies on financial sustainability of

bio-mass based power generation in the State. Since the fuel cost is a

widely varying parameter across the State, the variable charges need to

be assessed to achieve sustainable power generation by bio-mass

based plants.

9. Review of performance of KPTCL & ESCOMs:

The Commission has issued tariff orders for KPTCL and ESCOMs for the year

FY13 wherein certain directives have been issued for compliance by the

utilities. In this regard, the Commission proposes to review the performance

of each ESCOMs/KPTCL on technical and financial parameters and direct

the concerned to initiate necessary corrective measures.

10. Multi Year Tariff orders in respect of KPTCL and ESCOMs:

The control period of the present Multi Year Tariff order in respect of KPTCL

and ESCOMs is for FY10-13. The Commission proposes to issue Multi Year Tariff

order for the next control period beginning from FY14. This would be the third

Multi Year Tariff order to be issued by the Commission under MYT principles.


2012


44

17. USE OF KANNADA IN THE COMMISSION’s ADMINISTRATION:

The Commission in its day-to-day activities uses Kannada as a medium of

communication. The Commission has formulated Regulations in Kannada

along with their English versions. The Annual Report is also published by the

Commission in Kannada and English.

The Office of the Consumer Advocacy of the Commission is publishing a

quarterly newsletter titled “Vidyuth Balakedara” in Kannada for the benefit of

consumers.

All notices of public interest are being issued in Kannada language and

Kannada newspapers. The Commission is making a continuous and sustained

effort for implementation of Kannada as the official language.


2012


45

ORGANIZATIONAL CHART OF KERC


2012


46

The detailed list of the PPAs approved during the year are as per Annexure - II

ANNEXURE – II

P P A s of N C E Projects approved by the Commission during 2011-12 (WIND MILL POWER )

SL

No

Name of the Generating

Company

Location details Capacity

in MW

Date of

agreement

KERC approval No &

date

1 2 3 4 5 6

BESCOM

1 NSL Renewable power

pvt Ltd

Hirekondavadi, & Chikkandavadi,

Chitradurga District

24.9 30.06.2011 S/01/11-12/10812

dated 25-08-2011

2 Vish Wind Infrastructure

Ltd

Kalasapura village, Gadag District 1.6 23.09.2011 S/01/11-12/503

dated 22-03-2012

3 RVS Associates Turuvanur Village, Chitradurga

District

0.25 29.12.2011 S/01/11-12/246

dated 07-02-2012

4 Mardras Hardtools Turuvanur Village, Chitradurga

District

0.5 29.12.2011 S/01/11-12/247

dated 07-02-2012

27.25

MESCOM

1 M/s. Srinivasa

Hatcheries Ltd.,

[ Loc No. K 505],

Gangarakatte Village, Shikaripura

Taluk, Shimoga District

1.5 18.04.2011 S/02/10/10308/03.0

6.2011

2 M/s. Sterling Industries

Ltd.,

Shidaganahalu Village, LOC. No. K-

567, K-568 & K-569 Shikaripura Taluk,

Shimoga District

3.75 02.04.2011 S/02/10/10309/03.0

6.2011

3 M/s. Khanna Industrial

Pipes Pvt. Ltd.,

Erekatte Village, Loc No. K 504,

Shikaripura Taluk, Shimoga District 1.5 11.04.2011

S/02/10/10306/03.0

6.2011

4

M/s. Tuppadahalli

Energy India Pvt. Ltd.,

Pennasamudra, Tuppadahalli,

Bettakadur, Gondihosahalli,

Gangaondanahalli, Attighatta,

Devarahosahalli and Malahalu

Village, Shimoga District

57.75 02.05.2011 S/02/10/10458/30.0

6.2011

5 M/s. Tirupati Microtech

Private Ltd.,

Gangavansara near Shimoga

District 1.25 01.07.2011

S/02/10/10776/19.0

8.2011

6 M/s. M.R. Pasalkar,

Erekatte Village, LOC No. 557,

Shikaripura Taluk, Shimoga District 1.25 01.04.2011

S/02/10/10310/03.0

6.2011

7 M/s. Rameshkumar

Hanjarimal Rathod,

Shidaganahalu Village, LOC No. K-

566 Shikaripura Taluk, Shimoga

District

1.25 01.04.2011 S/02/10/10304/03.0

6.2011

8 M/s. Rajasthan Gum

Pvt. Ltd.,

[Loc No. K-506]

Gangarakatte Village, Shikaripura

Taluk, Shimoga District

1.5 11.04.2011 S/02/10/10305/03.0

6.2011

9 M/s. Rajasthan Gum

Pvt. Ltd.,

[Loc No. K-514],

Shidaganahalu Village, Shikaripura

Taluk, Shimoga District 1.5 11.04.2011

S/02/10/10311/03.0

6.2011

71.25


2012


47

SL

No


Company


in MW

Date of

agreement

KERC approval No &

date

1 2 3 4 5 6

CESC

1 M/s Hindustan Zinc

Limited

Tenkanahalli, CR

Patna Tq, Hassan 4.5 31.03.2011

S/02/11-12/9996

Dated 19.04.2011


Limited Mallappanabetta, Hassan 1.5 31.03.2011

S/02/11-12/9997

Dated 19.04.2011


Limited

Mallappanabetta,

Bittagaudanahalli 3 31.03.2011

S/02/11-12/10005

Dated 19.04.2011


Limited

Chowdanahalli, H N

Pura, Hassan 6 31.03.2011

S/02/11-12/10004

Dated 19.04.2011

15

HESCOM

1 M/s Oswal Woollen Mill

Ltd-I

Shirgaon Village, Chikkodi Taluk,

Belgaum District 0.85 03.10.2011

S/04/11-12/11313

Dt: 30.11.2011

2 M/s Oswal Woollen Mill

Ltd-II

Nej Village, Chikkodi Taluk,

Belgaum District 0.85 03.10.2011

S/04/11-12/11312

Dt: 30.11.2011

3 M/s Bhoruka - Phase-I

(25.5 MW)

Yelisirur Village, Gadag Taluk &

District 25.5 25.01.2012

S/04/11-12/293 Dt:

16.02.2012

27.2

GESCOM

1 M/s Shree Krishna

Minerals No.192,16th

ward College Road,

Hospet, Bellary Dist

Hanumasagar Village, Koppal Dist. 1 28.04.2011 S/02/10/10487

Dt.05.07.2011

2 M/s Rajasthan Gums

Pvt. Ltd, KAL-10 at

Eachnal Village

Gangavati Tq, Koppal

Eachnal Village, Koppal Dist. 1.5 28.09.2011 S/05/11-12/11283

Dt. 24.11.2011

3 M/s rajasthan Gums

Pvt. Ltd, SND 107 at

Kurugodu Village

Bellary Dist.

Kurugodu Village Bellary Dist. 2.1 28.09.2011 S/05/11-12/11285

Dt. 24.11.2011

4 M/s KRBL Limited. Wind

power project at

Sindigere Village,

bellary Taluk, bellary

district

Sindigere Village, bellary district 2.1 28.09.2011 S/05/11-12/11287

Dt. 24.11.2011

6.7


2012


48

ANNEXURE – 2

P P A s of N C E Projects approved by the Commission during 2011-12- (MINI HYDEL POWER)

SL

No


Company Location details

Capacity in

MW

Date of

agreement KERC approval No & date

1 2 3 4 5 6

BESCOM

1 Atria Power Corporation

Shivanasamudra,

Malavalli Taluk, Mandya

District.

6 05.08.2011 S/01/10-11/11053

dated 04-10-2011

6

MESCOM

NIL

CESC

1 M/s Flax Hydro Energy Pvt. Ltd Aremadanahalli Village, 1.5 27.06.2011

S/02/11-12/0789

dated 23.08.2011

(Project not

Commissioned)

1.5

HESCOM

NIL

GESCOM

NIL


2012


49

ANNEXURE – 3

P P A s of N C E Projects approved by the Commission during 2011-12 (CO-GENERATION POWER)

SL

No



Capacity

in MW

Date of

agreement

KERC approval No &

date

1 2 3 4 5 6

BESCOM

NIL

MESCOM

NIL

CESC

NIL

HESCOM

1 Gokak Sugars Ltd. Kolavi Village, Gokak

Taluk, Belgaum District 6.5

02.09.10

S/04/11-12/10150 Dt:

11.05.2011

2 Raitara sahakari sakkare

kharkhane Niyamit

Timmapuri Village,

Mudhol Taluk,Bagalkot

District

7.735

28.12.10

S/04/10/10670 Dt:

01.08.2011

3

M/s. Dhanlaxmi Sahakari

Sakkare Karkhane Niyamit

(GMR Industries) Haliyal

Khanpet Village,

Ramdurg Taluk, Belgaum

District

7.5 08.10.10 S/04/11-12/11327 Dt:

01.12.2011

21.735

GESCOM

Nil

ANNEXURE – 4

P P A s of N C E Projects approved by the Commission during 2011-12 (BIOMASS POWER)

SL

No



Capacity

in MW

Date of

agreement

KERC approval No &

date

1 2 3 4 5 6

NIL

ANNEXURE-5

P P A s of N C E Projects approved by the Commission during 2011-12 (SOLAR POWER)

SL

No


Company


in MW

Date of

agreement

KERC approval No &

date

1 2 3 4 5 6

NIL


2012


50

Annexure – III

List of members of State Advisory Committee, KERC

1. The Managing Director

Karnataka Power Transmission

Corpn. Ltd.

Cauvery Bhawan,

Kempegowda Road

Bangalore -9

Ph : 080-22214342/22244556


Karnataka Power Corporation Ltd.

Shakti Bhawan,

Race Course Road,

BANGALORE – 560 001

Ph: 080 –22255606 /22204153

3. Sri B. Sathyanarayana Udupa

Secretary, Bharatiya Kisan

Sangha

1st Floor, Vasuki Towers

Near Taluk Office

UDUPI

Ph : 0820 –2536450 /94488 -43888

4. Prof.H.P.Khincha

Former Vice Chancellor of

Vishweshwaraiah Technological

University,

11/1, 4th Main,

Chamarajpet,

BANGALORE – 560 018.

Ph: 22932361 (O) 9845010476

5. President,

KASSIA,

2/106, 17th Cross, Magadi Chord

Road, Vijayanagar,

BANGALORE – 560 040.

Ph: 28362178(O), 23493353 ( R);

9845031122

6. Sri. A. Raja Rao,

471, 22nd Cross,

Banashankari II Stage,

BANGALORE- 560 070.

Ph: 26719897( R)

7. The Secretary

Dept. of Food & Civil Supplies &

Consumer Affairs, GOK, M.S.

Building


(O) 22259024


BESCOM

K.R.Circle


(O)22354929


GESCOM

Station Road

GULBARGA

(O) 08472 256581 (M)

9449597444

10. Sri B.G. Rudrappa

Former Chairman –KEB

278/2,9th ‘A’ Main Road, II Block,

Jayanagar, BANGALORE-560 011

Phone: 080 –26563366

11. Principal Secretary to

Government

Rural Development &

Panchayat

Raj Department, M.S. Building


(O) 22353929

12. Dr. S.L. Rao, Former Chairman,

Institute of Social & Economic

Change, D1, Chartered Cottage,

Langford Road


(M) 9343198450 (R) 080-22275132


2012


51

13. General Manager

Southern Region Load Despatch

Centre,

29 Race Course Cross Road

BANGALORE –560 009

(Ph.22250047)

14. President

Confederation of Indian Industry

Karnataka State Branch

1086, 12th Main HAL 2nd Stage,

Indiranagar

BANGALORE – 560 008 (Ph.

25276544)

15. Sri. S.J. Coelho

# 65, IV ‘A’ Cross, HIG Colony

RMV Extension, II Stage

Bangalore – 560 094

(Ph. 2341 7364)

16. Director General CPRI,

Prof. Sir. C. V. Raman Road,

Sadashivanagar, Bangalore –80

(M) 9448362457

INVITEES

1 The Managing Director

HESCOM

Navanagar,

HUBLI – 580 029

(M) 9448277614 (O) 0836

2322771


MESCOM, Paradigm Plaza

A.B.Shetty Circle

MANGALORE –575 001

(O) 0824 2444300

3 The Chief Engineer, Karnataka

State Load Despatch Centre,

KPTCL, Bangalore.

(M) 9448471411 (O) 22267034


CESC, No.927, L.J. Avenue

New Kantharajaurs Road,

Saraswathipuram

MYSORE – 570 009

Ph: 0821 –2417101

* * * * *

ªÀÄÄzÀæPÀgÀÄ: ¤zÉðÃ±ÀPÀgÀÄ, À̧PÁðj ªÀÄÄzÀæuÁ®AiÀÄ, É̈AUÀ¼ÀÆgÀÄ. (600 ¥ÀæwUÀ¼ÀÄ, PÁ. À̧Æ. ¦. 39, ¦-3)

Documents

THIRTEENTH ANNUAL REPORT