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West Bengal Electricity Regulatory Commission
Corrigendum to the Order dated 04.03.2015 of the Commission in regard to the Tariff Application of the West Bengal State Electricity Distribution Company
Limited (WBSEDCL), for the year 2014-2015 in Case No TP-61/13-14
Attention of the Commission has been drawn to certain typographical errors / apparent
mistakes in the tariff order dated 04.03.2015 passed by the Commission in regard to the
Tariff Application of WBSEDCL, for the year 2014-2015 in Case No: TP-61/13-14 .
The Commission is of the considered opinion that in the interest of all concerned such
typographical error / apparent mistake which do not have any effect on tariff
determination already made inadvertently in the said tariff order, be corrected and
necessary corrigendum be issued. The Commission accordingly carries out such
correction keeping in view the provisions of Section 94 of the Electricity Act, 2003 and
directs the Secretary to issue the following corrigendum :-
Correction of some typographical errors / apparent mistakes in the Tariff Order dated 04.03.2015 in respect of WBSEDCL.
************************************************************************************************
Page No Nomenclature Present Description Corrected Description
160
Some of the signs in first column with the column heading “Power Factor (PF) Range in %” of the Table “Power Factor Rebate & Surcharge on Energy Charge in Percentage” under sub-paragraph 7.2.11.1 are erroneously printed.
Power Factor (PF) Range in %
Power Factor (PF) Range in %
PF > 0.99 PF > 0.99%
PF > 0.98 & PF < 0.99 PF > 0.98% & PF < 0.99% PF > 0.97 & PF < 0.98 PF > 0.97% & PF < 0.98% PF > 0.96% & PF < 0.97% PF > 0.96% & PF < 0.97% PF > 0.95% & PF < 0. 96% PF > 0.95% & PF < 0. 96% PF > 0.94% & PF < 0.95% PF > 0.94% & PF < 0.95% PF > 0.93% & PF < 0.94% PF > 0.93% & PF < 0.94% PF > 0.92% & PF < 0.93% PF > 0.92% & PF < 0.93% PF > 0.86% & PF < 0.92% PF > 0.86% & PF < 0.92% PF > 0.85% & PF < 0. 86% PF > 0.85% & PF < 0. 86% PF > 0.84% & PF < 0. 85% PF > 0.84% & PF < 0. 85%
PF > 0.83% & PF < 0.84% PF > 0.83% & PF < 0.84% PF > 0.82% & PF < 0. 83% PF > 0.82% & PF < 0. 83% PF > 0.81% & PF < 0.82% PF > 0.81% & PF < 0.82% PF > 0.80% & PF < 0. 81% PF > 0.80% & PF < 0. 81% PF < 0.80% PF < 0.80%
153 Chapter 7, Header CHAPTER 7, TARIFF ORDER FOR 2011-12
CHAPTER 7, TARIFF ORDER FOR 2014-15
169
Annexure 7A2 , 1st
Lokdeep/Kutirjyoti [(Rate A (DM-K)]
row of the tariff structure of Low and Medium Voltage Consumers
Entire row is to be deleted. The rest rows will be renumbered accordingly.
169
Annexure 7A2, Sl. 5 “Irrigation Pumping for Agriculture (Unmetered), Column 7, against row for “Submersible in NB”
Rs. 288/KVA /Month (but not less than 1200.00 per month)
Rs. 288/KVA /Month (but not less than 1400.00 per month)
173
Annexure 7A2, Sl. 22 “Domestic consumers (50 KVA and above but upto 125 KVA), Column 8
Rate C-IDT Rate D-IDT
Sd/- (SUJIT DASGUPTA) MEMBER Dated: 19.03.2015
ORDER
OF THE
WEST BENGAL ELECTRICITY REGULATORY COMMISSION
FOR THE YEAR 2014 – 2015
IN
CASE NO: TP – 61 / 13 - 14
IN RE THE TARIFF APPLICATION OF WEST BENGAL STATE
ELECTRICITY DISTRIBUTION COMPANY LIMITED FOR THE
YEARS 2014-2015, 2015-2016 and 2016-2017
UNDER SECTION 64(3)(a)
READ WITH SECTION 62(1) AND SECTION 62(3)
OF THE ELECTRICITY ACT, 2003
DATE: 04.03.2015
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 1 INTRODUCTION
West Bengal Electricity Regulatory Commission 2
1.1 The West Bengal Electricity Regulatory Commission (hereinafter referred to as
the “Commission”), a statutory body under the first proviso to section 82(1) of the
Electricity Act, 2003 (hereinafter referred to as the “Act”), has been authorized in
terms of the section 86 and section 62(1) of the Act to determine the tariff for a)
supply of electricity by a generating company to a distribution licensee, b)
transmission of electricity, c) wheeling of electricity and d) retail sale of electricity,
as the case may be, within the State of West Bengal.
1.2 The West Bengal State Electricity Distribution Company Limited (hereinafter
referred to as WBSEDCL), is deemed to be a licensee under the Electricity Act,
2003 in terms of fifth proviso to Section 14 of the Act wholly owned by the State
Government and is engaged in the business of distribution of electricity within the
area of supply of WBSEDCL in the State of West Bengal and the distribution tariff
of WBSEDCL shall be determined by the Commission.
1.3 West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2011 has come into effect from 29th April, 2011. The said Tariff
Regulations, 2011 was further amended by notifying the West Bengal Electricity
Regulatory Commission (Terms and Conditions of Tariff) (Amendment)
Regulations, 2012 in the extra ordinary edition of The Kolkata Gazette dated 27th
August, 2012 and West Bengal Electricity Regulatory Commission (Terms and
Conditions of Tariff) (Amendment) Regulations, 2013 in the extra ordinary edition
of The Kolkata Gazette dated 30th
1.4 In terms of West Bengal Electricity Regulatory Commission (Terms and
Conditions of Tariff) Regulations, 2011, as amended from time to time
(hereinafter referred to as the ‘Tariff Regulations’), the tariff applications for the
fourth control period consisting of the years 2014 – 2015, 2015 – 2016 and 2016
July, 2013.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
3
– 2017 under the Multi Year Tariff (MYT) framework was required to be
submitted by WBSEDCL 120 days in advance of the effective date of the said
control period. The effective date of the fourth control period is 1st April, 2014.
WBSEDCL submitted an application on 21.11.2013 for extension of date for
submission of their MYT application for the fourth control period upto 31.12.2013
on the plea that they could submit their FPPCA application for the year 2012 –
2013 on 07.11.2013 and required some time to complete their work for the tariff
petition for the fourth control period. The Commission, after considering the
application of WBSEDCL and also the applications received from some other
distribution licensees, the transmission licensee and the generating company in
the State for extension of time for submission of MYT application, decided to fix
the last date of submission of MYT application for the fourth control period on
31.12.2013 and accordingly issued an order dated 02.12.2013. WBSEDCL,
however, submitted another application on 30.12.2013 for further extension of
time upto 15.01.2014 on the ground that WBSEDCL purchases power from the
Central sector utilities besides purchase of power from state utilities and the tariff
for the period 2014-2019 for central sector agencies was yet to be finalized by
Central Electricity Regulatory Commission (in short ‘CERC’). The Commission
vide order dated 31.12.2013 further extended the date of submission of MYT
application for the fourth control period upto 15.01.2014. WBSEDCL submitted
another application on 13.01.2014 for further extension of time upto 15.02.2014
on the ground that WBSEDCL could not finalize their power purchase cost as the
required information regarding proposed power purchase cost in respect of
different power stations of West Bengal Power Development Corporation Limited
(in short ‘WBPDCL’) was not received from WBPDCL and the tariff of central
sector agencies were yet to be finalized by CERC. This was not considered by
the Commission. WBSEDCL had failed to submit their MYT application within
15.01.2014. WBSEDCL further prayed to allow minimum another one month time
to submit their application vide their letter dated 22.01.2014 stating the reason
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
4
that average cost of supply and the tariff structure for different categories of
consumers would only be determined after finalization of power purchase cost as
the power purchase cost contributes 70% to 75% of Aggregate Revenue
Requirement (ARR). This was also not considered by the Commission. The
Commission vide letter dated 24.01.2014 directed WBSEDCL to submit their
MYT application for the fourth control period without further loss of time.
WBSEDCL submitted their MYT application for the fourth control period on
24.02.2014. The application is for determining the revenue requirements and
tariff of WBSEDCL for the fourth control period comprising three ensuing years
2014 – 2015, 2015 – 2016 and 2016 – 2017 under MYT framework. On scrutiny,
it had been found that some of the data, forms and documents were yet to be
submitted by WBSEDCL and the same were submitted by WBSEDCL on
03.03.2014 at the instance of the communication sent to WBSEDCL vide letter
dated 27.02.2014 of the Commission. WBSEDCL also made required submission
on 04.03.2014 in reply to Commission’s letter dated 04.03.2014.
1.5 The tariff application submitted on 24.02.2014 along with the information / data,
documents submitted on 03.03.2014 and 04.03.2014, were admitted by the
Commission in case No.TP-61/ 13-14, which were communicated to WBSEDCL
on 04.03.2014 with the direction to publish the gist of the tariff application as
approved by the Commission in the news papers and also in their website, as
specified in the Tariff Regulations. The gist was, accordingly, published
simultaneously on 5th March, 2014 in the news papers - (i) ‘Business Line’
(English), (ii) ‘The Telegraph’ (English), (iii) ‘Anandabazar Patrika’ (Bengali), (iv)
‘Khabar – 365 din’ (Bengali), (v) ‘Kalam’ (Bengali), (vi) ‘Sanmarg’ (Hindi) and (vii)
‘Akhbar-E-Mashriq’ (Urdu). The gist along with the tariff application was also
posted in the website of WBSEDCL. The publication invited the attention of all
interested parties, stake holders and the members of the public to the application
for determination of tariff of WBSEDCL for the fourth control period and
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
5
requested for submission of suggestions, objections and comments, if any, on
the tariff application to the Commission by 11th
1.6 Objections to / comments on the aforementioned tariff petition of WBSEDCL for
the fourth control period were received by the Commission from the following
objectors within the stipulated time i.e., 11
April, 2014 at the latest.
Opportunities were also offered to all to inspect the tariff application and to take
copies thereof. Some correspondences were also made with WBSEDCL which
were also published in the website of the Commission from time to time.
th
1. Ess Dee Aluminium Limited.
April, 2014 and the same have been
recorded in a summarized form in Chapter 3 of the instant order.
2. Ganatrantik Nagarik Samity, Howrah
3. Indus Tower Limited
4. Modern India Concast Limited
5. Eastern Railway
6. South Eastern Railway
7. Indian Tea Association
8. Rashmi Metaliks Limited.
9. Sri Gayatri Minerals Pvt. Ltd.
10. Rohit Ferro-Tech Ltd.
11. Sri Vasavi Industries Ltd.
12. CESC Limited.
1.7 The Commission determines the tariff in accordance with the Electricity Act, 2003
and the Tariff Regulations framed thereunder and for this purpose, the
Commission has estimated the expenditure for 2013 – 2014 to arrive at the
estimated expenditure / cost under different heads for the years 2014 – 2015 to
2016 – 2017.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
6
1.8 The estimation made for 2013 – 2014 by the Commission shall not be construed
by WBSEDCL as admission of at least such estimated amount in APR for 2013 –
2014. On the other hand, if in APR any deduction is made then as a conclusion
from such decision one shall not expect that the impact of such deduction is to be
continued in forth control period as this will tantamount to imposing a penalty for
infinite nature or double penalty for the same inefficiency.
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 2 THE CASE OF WBSEDCL
West Bengal Electricity Regulatory Commission 7
2.1 The applicant WBSEDCL has submitted the application for determination of
Aggregate Revenue Requirement (ARR) and tariffs for the fourth control period
covering the years 2014-15, 2015-16 and 2016-17 under MYT framework in
accordance with the Tariff Regulations. The applicant has projected the ARR and
the tariffs for each ensuing year under the fourth control period and has prayed
for allowing the same. The applicant has also prayed for other dispensations
which are mentioned in subsequent paragraphs.
2.2 WBSEDCL has projected the ARR for the years 2014-15, 2015-16 and 2016-17
at Rs 16308.13 crore, Rs 19110.30 crore and Rs 22113.82 crore respectively
and the average cost of supply for 2014-15 at 657.98 Paise / kWh. It is also
stated that attempt is made by WBSEDCL to reduce the average cost of supply
by about 2 Paise/kWh for the year 2014-15 from the expected average cost of
supply of 659.93 Paise/kWh for the year 2013-14 (taking into consideration
increased cost of power purchase of 2013-14) even after considering release of
regulatory asset and special appropriation having consequential effect of 26.44
Paise/ kWh in the average cost of supply for 2014-15. The reasons for such
reduction in average cost of supply during 2014-15 are stated as follows:
i) Expected increase of internal efficiency of WBSEDCL including in the
field of procurement of power and supply to other licensees.
ii) Lower cost of generation for the power available from West Bengal Power
Development Corporation Ltd (WBPDCL).
It is further stated that such effort will continue for reduction of average cost of
supply for 2015-16 and 2016-17.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
8
2.3 It is also submitted by the applicant that the Commission may consider rise in
price index and consumer base rise in power purchase cost and operating cost
resulting in increased cost of business.
2.4 It is stated by the applicant that while determining the ARR for the ensuing years
under the fourth control period, all infrastructure investment and power
procurement plan have been made assuming that all consumers under
WBSEDCL area will continue with power supply from WBSEDCL.
2.5 WBSEDCL has claimed to have completed the scheme of metering at the sub-
station upto 11 KV feeders. The scheme for metering for all irrigation and street
light consumers is under process and expected to be completed by 31.03.2015
as stated by them. It is also stated that the following measures are being taken
up to reduce the distribution loss (both technical and commercial):
(a) Regular monitoring of revenue, collection and distribution loss,
(b) Conduct of raids by Security and Loss Prevention Wing,
(c) Arranging consumer Parisheba Mela / Camp at different areas for speedy
release of new service connection,
(d) Implementation of Supervisory Control and Data Acquisition (SCADA) /
Distribution Management System (DMS) scheme for 3 nos. towns and
RAPDRP – Part B scheme for 5 nos. towns in WBSEDCL area,
(e) To facilitate energy audit mapping and documentation of entire power
network of WBSEDCL, Geographical Information System (GIS) stated to
have been taken up and is under progress,
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
9
(f) Spot billing facility for all categories of L & MV consumers under many
customer care centres is stated to be already in place and such billing
facility has been envisaged to be extended further,
(g) Implementation of Distribution Transformer (DTR) metering to locate loss
prone areas,
(h) Restructured Accelerated Power Development and Reform Programme
(in short ‘RAPDRP) (Part –A) for installation of IT infrastructure for
assessment and monitoring of loss on regular basis in 62 towns are under
progress. RAPDRP extension scheme for balance areas have also been
proposed by WBSEDCL,
(i) R-APDRP (Part – B) for 45 towns have also been taken up for reducing
AT&C loss of those towns.
2.6 WBSEDCL has submitted the projection of the energy balance that has been
arrived based on the estimated consumption, loss in distribution system of
WBSEDCL and loss in transmission system of WBSETCL at the normative level
as per Tariff Regulations. It is also submitted that the petitioner has to consider
the loss in central and state grid, as applicable.
2.7 The applicant has claimed that with fast growing / expanding distribution network,
additional consumers are being added with WBSEDCL system during the last
few years. It is stated that based on trend of increase in number of consumers in
last five years, consumers’ strength of WBSEDCL has been projected for the
years 2014-15, 2015-16 and 2016-17. The consumption of different categories of
consumers during the years 2014-15, 2015-16 and 2016-17 stated to have been
estimated as per CAGR of consumption during the last five years of the
respective category of consumers.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
10
2.8 Total sale of energy to own consumers of WBSEDCL has been projected as
24785.10 MU in the year 2014 – 2015, 27232.10 MU in the year 2015 – 2016
and 29921.10 MU in the year 2016 – 2017. Distribution loss has been projected
on the normative basis at a level of 17.50% for all the three years 2014 – 2015
and 2015 – 2016 and 2016 – 2017.
2.9 The applicant has also projected sale of energy to other licensees viz. CESC
Limited, The Durgapur Projects Limited (DPL) and DPSC Limited (DPSCL)
during the ensuing years under the control period. The projection of sale of
energy to CESC Limited stated to have been made on the basis of projection
given by CESC Limited at a level of 1810 MU, 630 MU and 685 MU respectively
for the years 2014-15, 2015-16 and 2016-17. The projection of sale of power to
DPL as stated to have been estimated at 200 MU for each ensuing year of the
control period as per drawal trend of DPL. The sale of power to DPSCL stated to
have been estimated at 333.90 MU, 394.22 MU and 431.30 MU during the years
2014-15, 2015-16 and 2016-17 respectively as per the projections of DPSCL.
2.10 In terms of an agreement signed between the Govt. of West Bengal and Govt. of
Sikkim the applicant has claimed that 47 MU of energy being 20% of the sent out
generation from Rammam Hydel station Stage-II shall be supplied to Sikkim each
year of the control period.
2.11 Sale of incidental surplus energy to the persons other than consumers and
licensee during 2014 – 2015, 2015 – 2016 and 2016 – 2017 have been
estimated by the applicant to be at a level of 3647.00 MU, 3847.00 MU and
3322.00 MU respectively. In view of the present poor and unpredictable condition
of power market, the price for such power sale has been considered at pool rate
of power purchase of respective year. No projection has, however, been made by
WBSEDCL towards banking of power through swap arrangement for the ensuing
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
11
years under the control period. WBSEDCL may have to swap out power during
real time operation during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017.
2.12 WBSEDCL has two main hydel power stations situated at Rammam and
Jaldhaka. Based on existing PLF 236.50 MU generation for each year of 2014 –
2015, 2015 – 2016 and 2016 – 2017 has been projected for Rammam hydel
power station. It is stated that with the commissioning of new 4th
WBSEDCL has also a pumped storage project at Purulia. The Purulia Pumped
Storage Project (PPSP) in fact provides spinning reserve and utilized as and
when required to meet the system demand. Annual generation at a level of 1318
MU have been projected for the years 2014 – 2015, 2015 – 2016 and 2016 –
2017 according to the system requirement and considering optimum utilization of
the surplus power during the off peak hours.
unit of capacity 9
MW, the overall capacity of Jaldhaka Stage – I hydel power station become 36
MW. The generation from Jaldhaka Stage – I hydel power station have been
projected at 165.20 MU for all the three years under the control period.
2.13 WBSEDCL stated to have 10 (ten) small / micro hydel generating stations and
the generation from those generating stations are projected as generation from
renewable sources of energy. While projecting the generation from those
generating stations, it is stated that the generation from all such generating
stations except Jaldhaka – Stage-II have been estimated based on previous
trend while generation from Jaldhaka – Stage-II has been estimated as per trend
of other small / micro hydel power stations as that generating station has started
generation from September, 2013 after completion of R&M works. The
generation from the small / micro power stations has been projected at 160.63
MU, 169.63 MU and 172.63 MU for the years 2014 – 2015, 2015 – 2016 and
2016 – 2017 respectively.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
12
2.14 WBSEDCL is maintaining a diesel generating plant at Rudranagar in Sagar
Island which was earlier supplying power to the consumers at Sagar Island. The
load at Sagar Island are now being catered through grid. No generation has been
projected from the diesel generating station for any year under the control period.
2.15 WBSEDCL is continuing to purchase power from different agencies namely West
Bengal Power Development Corporation Ltd. (WBPDCL), The DPL, DPSCL,
Damodar Valley Corporation (DVC), NTPC Ltd. (NTPC), NHPC Ltd (NHPC) and
PTC Ltd (PTC). It is also submitted that conventional power will also be
purchased directly from the new units of WBPDCL, NTPC, NHPC, DVC and
other generators and from electricity traders to meet the system demand of
WBSEDCL during the ensuing years of the fourth control period. WBSEDCL will
also purchase power from different renewable and co-generation sources of
energy during the ensuing years under the fourth control period.
2.16 The planning of power purchase has been claimed by WBSEDCL to have been
done keeping in view the following aspects.
(a) Estimated system demand for the ensuing years based on the projected
load growth.
(b) Maximum generation that may be available from the hydel power stations
of WBSEDCL.
(c) Commitment to meet the peak system demand.
(d) Requirement of pumping energy for optimum utilization of PPSP to meet
the system demand.
(e) Effort to keep spinning reserve as per regulation to meet emergency
situation while sudden break down of any unit occurs.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
13
2.17 It is stated by WBSEDCL that the net generation to be available from the existing
generating stations of WBPDCL except Bandel TPS have been computed based
on the plant availability achieved by the respective generating stations during
2012 – 2013 and normative auxiliary consumption. As it is learnt by WBSEDCL
that the Bandel TPS is under shut down for R&M works from December, 2013 to
April, 2014 the generation from Unit V of Bandel TPS is stated to have been
estimated considering 70% availability during 2014 – 2015 and normative
availability during 2015 – 2016 and 2016 – 2017. The Units I to IV of Bandel TPS
is stated to be considered as stand-by. The availability of power from new 3rd
and 4th
2.18 WBSEDCL has claimed that besides purchasing power through grid system, they
will also purchase some quanta of power in radial mode from DVC at Asansol,
Burdwan and other areas, from DPL (at 33 KV & 11 KV) in and around Durgapur
area and from DPSC (at 11 KV) at Asansol area, Govt. of Sikkim (at 11 KV) at
units of Sagardighi TPS during 2015 – 2016 and 2016 – 2017 has been
considered at 400 MW and 1000 MW respectively and the projection of available
energy from those units have been estimated by WBSEDCL based on average
availability of the existing units I & II of the generating stations during 2010 –
2011 and normative auxiliary consumption. The units III & IV of the Sagardighi
TPS are yet to be commissioned and WBPDCL have not given any projection of
generation from those units III & IV during the years 2015 – 2016 and 2016 –
2017 in their tariff application for the fourth control period. WBSEDCL on query
has stated that generation from the new units III & IV at Sagardighi TPS is
projected as per communication received from WBPDCL. The capacity charges
for all the existing generating stations of WBPDCL for the years 2014 – 2015,
2015 – 2016 and 2016 – 2017 have been estimated by WBSEDCL reducing
proportionately the annual capacity charges as communicated by WBPDCL for
the respective generating station. The energy charges are considered as
communicated by WBPDCL for the respective generating stations.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
14
Rangpoo area and WBREADA (at 11 KV) at Frezerganj area for catering its own
consumers during the years under the fourth control period.
2.19 WBSEDCL has projected the purchase of power from DPL at 132 kV, 33 kV and
11 kV during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 considering
the trend of drawal by them from DPL during 2012 – 2013 and the cost of such
power purchase has been estimated as per existing rate along with MVCA
claimed by DPL in the month of October, 2013. The power purchase from
DPSCL has been projected by WBSEDCL at a reduced level during 2014 –
2015, 2015 – 2016 and 2016 – 2017 as they have started to meet the demand of
some area at Asansol from their own source replacing the drawal from DPSCL at
radial mode. The power purchase cost has been projected at the existing rate of
purchase from DPSCL along with MVCA claimed by DPSCL in the month of
October, 2013.
2.20 The applicant has submitted that any revision of tariff in respect of WBPDCL,
DPL and DPSCL for the ensuing years by the Commission have an impact in
power purchase prices projected by WBSEDCL and that may be considered
while determining the power purchase cost of WBSEDCL for the ensuing years
under the fourth control period.
2.21 WBSEDCL has planned to purchase power also from NTPC Limited, NHPC
Limited, Damodar Valley Corporation (DVC) besides purchase of power from
WBPDCL, DPL, CESC Ltd and DPSCL. WBSEDCL shall also purchase power
from other generating stations on commissioning of those generating stations
during the years 2014-15, 2015-16 and 2016-17 to meet their load growth. The
price of power purchase is considered as per tariff applicable of the respective
generating companies, wherever available or from the price as projected by the
generating companies or based on available price with escalation as per CERC
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
15
Notification under Case-I bidding route. The applicant submitted to consider
selling price as may be allowed by the CERC in the tariff order of NTPC Ltd.,
NHPC Ltd, DVC and other generators for the respective years while passing tariff
orders in respect of WBSEDCL for the years 2014-15, 2015-16 and 2016-17 if
the tariff order in respect of those agencies are issued before the tariff order for
WBSEDCL are passed by the Commission. The applicant has also submitted to
consider the escalation on energy charges in line with CERC Notification for bid
evaluation in Case-I bidding to capture the impact of FCA in subsequent years
for purchase of power from them.
2.22 It is proposed that any hike in power purchase cost of WBSEDCL due to hike in
FCA, MVCA and MFCA of the generating stations be allowed to claim through
MVCA from the sale to own consumer and licensees in the State.
2.23 WBSEDCL has estimated own consumption at the offices and substations for the
years 2014-2015, 2015 – 2016 and 2016 – 2017 at 46 MU, 48 MU and 50 MU
respectively. WBSEDCL have projected 1016.95 MU to be procured either
through power swap-in on purchase of short term power generally in the months
of April and March next year during the year 2014 – 2015 in order to bridge the
gap between supply of power and system demand which usually occurs during
those months. In case of requirement of purchase of short term power or import
of power under swap arrangement during the years 2015 – 2016 and 2016 –
2017, WBSEDCL shall intimate the same through APR application for
incorporation in the tariff order for the respective year.
2.24 Considering the projected sent out generation from its own generating stations,
power purchase from different agencies and the projected sales, energy
consumption at own premises, WBSEDCL has projected the energy balance for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 also.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
16
2.25 The applicant has submitted the projection of energy balance stated to have
been arrived based on the estimated consumption, loss in distribution system of
WBSEDCL and transmission system of WBSETCL at the normative level as per
Tariff Regulations and loss in CTU Grid.
2.26 The applicant has projected Rs.1293519.00 lakh as power purchase cost for the
year 2014 – 2015 while for the years 2015 – 2016 and 2016 – 2017 the power
purchase cost has been estimated as Rs.1421572.00 lakh and Rs.1589482.00
lakh respectively. This power purchase cost includes the cost of purchase of
estimated quantum of infirm power from the units under stabilization.
2.27 Transmission charges payable to WBSETCL for the energy required to be
transmitted by the petitioner through WBSETCL system has been projected as
Rs. 112835.00 lakh for the year 2014 – 2015, Rs. 139700.00 lakh and Rs.
145217.00 lakh for the years 2015 – 2016 and 2016 – 2017 respectively.
However, WBSEDCL has claimed Rs. 2172.00 lakh, Rs. 2388.00 lakh and Rs.
2619.00 lakh as SLDC charges during the years 2014 – 2015, 2015 – 2016 and
2016 – 2017 respectively. The system operation charges payable to POSOCO
have been estimated by WBSEDCL at Rs. 410.00 lakh for all the three years
under the fourth control period.
2.28 An amount of Rs. 120934.00 lakh has been estimated as employees cost for the
year 2014 - 2015. For the years 2015 – 2016 and 2016 – 2017 employee cost
has been projected as Rs. 136644.00 lakh and Rs. 154478.00 lakh respectively.
It is submitted that due to demographic and geographic considerations,
WBSEDCL is to maintain minimum level of employees to provide service to its
consumers. The number of employees at the end of 2012 – 2013 was 16837 as
against sanctioned post of 22125. In order to remove the gap in number of
employees arisen due to retirement of a good number of employees in the recent
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
17
past, WBSEDCL require to recruit new employees in phases during the years
2014 – 2015, 2015 – 2016 and 2016 – 2017.
2.29 The applicant has considered a D.A hike @ 12% each year on average basis for
the years under fourth control period, i.e., 2014 – 2015, 2015 – 2016 and 2016 –
2017. Moreover, increase in pay in respect of normal increment of employee cost
has been considered @ 2% on the basic and grade pay during the years 2014 –
2015, 2015 – 2016 and 2016 – 2017. Effect of 2% hike is also considered on
overtime and HRA. WBSEDCL has further claimed that terminal benefits are
reduced in the ensuing years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as the
service of newly recruited employees are not covered under the pension scheme
of WBSEDCL. No wage revision of employees has been considered by
WBSEDCL in the employee cost.
2.30 The applicant has projected Operation and Maintenance (O&M) expenses
including Repair & Maintenance (R&M) cost for the year 2014 – 2015 at
Rs.48462.00 lakh. The O&M expenses for the years 2015 – 2016 and 2016 –
2017 have been projected as Rs. 56907.00 lakh and Rs. 66495.00 lakh
respectively. WBSEDCL has claimed that distribution assets and consumer
strength of WBSEDCL is increasing rapidly due to RGGVY programme and other
work such as R-APDRP Part A and Part B, etc. at different parts of their
operational area. In order to deliver power with reasonable quality parameters
and to reduce instances of outages for the widely scattered large consumer
base, the expenditure of R & M works of WBSEDCL has been increased. The
O&M expense during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 have
been estimated considering the consumer growth of 8.44%, 8.05% and 7.80% for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively and general
inflation level of 10.09% as of October, 2013.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
18
2.31 The applicant has not claimed any provision for bad and doubtful debts for the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017. Bad and doubtful debts will
be claimed on actual basis in their APR application for the respective year.
2.32 The applicant has stated that the capitalization of expenses for employees cost,
interest, administrative and other expenditure under the construction activities
are made for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 following the
existing policy of WBSEDCL.
2.33 WBSEDCL claimed an amount of Rs. 5604.00 lakh for 2014 – 2015, Rs. 6170.00
lakh for 2015 – 2016 and Rs. 6792.00 lakh for 2016 – 2017 respectively for
establishing and maintaining communication network set up for the complaint
management mechanism as per West Bengal Electricity Regulatory Commission
(Standard of Performance of Licensee Relating to Consumer Services)
Regulations, 2010 under the head Lease Rental.
2.34 WBSEDCL has claimed Rs. 565.00 lakh, Rs. 672.00 lakh and Rs. 797.00 lakh for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively as per trend
under the head Complaint Management Mechanism to meet the expenses for – i)
toll free telephone for registering grievances at ZCC, ii) SMS charge for
forwarding grievance to Mobile Van, iii) rental charge for IVRS system, iv)
separate telephone facility at each customer care centre and v) antitheft toll free
telephone charges.
2.35 WBSEDCL has claimed outsourcing cost giving details of the expenditure under
different subheads. The outsourcing cost as claimed by WBSEDCL for the
ensuing years under the control period are as follows:
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
19
Expenditure under distribution head of
outsourcing
Outsourcing cost for distribution (Rs. in lakh)
2014 – 2015 2015 – 2016 2016 – 2017 Manpower related 21958.00 27290.00 33930.00 Excluding manpower related 18525.00 21719.00 25438.00
Total 40483.00 49009.00 59368.00
2.36 Cost of depreciation of assets of WBSEDCL which will be in service during the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017 stated to have been computed
following depreciation schedule as per Annexure – A in the Tariff Regulations
and projected at Rs. 50301.00 lakh, Rs. 61370.00 lakh and Rs. 69042.00 lakh
respectively. The details of the calculation of depreciation have been given in the
Form – B to Annexure – 1 in Volume – IIB of their petition.
2.37 WBSEDCL has not claimed any amount under the head advance against
depreciation for any ensuing years under the fourth control period.
2.38 WBSEDCL has projected Rs. 49667.00 lakh towards interest on borrowed
capital, Rs. 13005.00 lakh towards interest on Pension Bonds and Rs. 728.00
lakh towards other finance charges for the year 2014 – 2015. Similarly, for the
years 2015 – 2016 and 2016 – 2017, they have projected Rs. 66849.00 lakh and
Rs. 76280.00 lakh as interest on borrowed capital, Rs. 13005.00 lakh and Rs.
13005.00 lakh towards interest on Pension Bond and Rs. 754.00 lakh and Rs.
786.00 lakh towards other finance charges, respectively. The applicant has
provided the computations showing actual amounts of interest chargeable in
revenue accounts in the Form-C to Annexure – 1 in Volume – IIB of their petition.
2.39 WBSEDCL has projected Rs. 7034.00 lakh, Rs. 7983.00 lakh and Rs. 8845.00
lakh for the ensuing years of 2014 – 2015, 2015 – 2016 and 2016 – 2017
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
20
respectively under the head interest on security deposit payable to the
consumers.
2.40 Regarding interest on working capital requirement, WBSEDCL has submitted
that, based on the directive of the Commission vide paragraph 8.11 of its tariff
order for 2008 – 2009, the average security deposit of permanent consumers
(excluding provision for security deposit) for the ensuing years 2014 – 2015,
2015 – 2016 and 2016 – 2017 have been considered for utilization as working
capital for the respective years. The gap, if any, between the normative working
capital requirement and the average security deposit in any year, is required to
be considered as working capital requirement for that year and the interest
thereon be claimed as per provisions of the Tariff Regulations. WBSEDCL,
however, has not claimed any amount as interest on working capital during the
years under the control period.
2.41 The applicant has not claimed any amount towards reserve for unforeseen
exigencies for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 under the
fourth control period.
2.42 WBSEDCL has estimated the provision for Minimum Alternative Tax (MAT) for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 considering MAT rate
20.9605% over the book profit. The amount projected under the head for the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017 are Rs. 824.00 lakh, Rs.
906.00 lakh and Rs. 997.00 lakh respectively.
2.43 WBSEDCL has projected the return on equity at Rs. 73999.00 lakh for all the
three years under the control period stated to be considered on pretax basis on
the permitted returns @ 16.5% on the average equity base as per the Tariff
Regulations. It is submitted that an equity addition for the year 2013 – 2014 has
been considered as Rs. 12880.00 lakh which was shown as capital liability in
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
21
their annual accounts for 2012 – 2013. It is further stated that a letter had already
been sent to the State Government for conversion of such capital liability into the
equity.
2.44 WBSEDCL has proposed to release a part of the regulatory asset created on the
additional expenditure of WBSEDCL due to revision of pay and allowances as
per ROPA, 2009, at Rs. 10000.00 lakh and Rs 61703.00 lakh during the years
2015 – 2016 and 2016 – 2017 respectively. WBSEDCL has proposed for release
of Rs. 10000.00 lakh and Rs. 34000.00 lakh during the years 2015 – 2016 and
2016 – 2017 respectively from the regulatory assets created in the APR order for
2009 – 2010 and Rs. 6000.00 lakh and Rs. 20977.00 lakh during the years 2015
– 2016 and 2016 – 2017 respectively from the regulatory assets created in the
APR order for 2010 – 2011. WBSEDCL have also claimed carrying cost during
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 on the regulatory assets
created against APR for 2009 – 2010 and 2010 – 2011 referring the provisions of
the Tariff Policy and the direction passed by the Hon’ble Appellate Tribunal for
Electricity in case no. OP No. 1 of 2011 dated 11th
2.45 WBSEDCL has also proposed to consider the impact of APR of WBSEDCL for
2012 – 2013 in the ARR of the ensuing years of the fourth control period.
November, 2011. WBSEDCL
has, however, proposed to release nil amount during the year 2014 – 2015 for
those regulatory assets.
2.46 WBSEDCL has also proposed to allow special appropriation on account of the
followings:
a) Instalments payment claimed by WBPDCL against the revision of tariff of
their new units in the ARR for the years under the third control period.
b) Instalments payment towards FCA of WBPDCL for the year 2010 – 2011.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
22
2.47 Total expenditure of Rs.1866040.00 lakh has been computed by the applicant
and after excluding the revenue earned from other income, from bulk supply and
supply to Sikkim, expenses attributable to export and taking into account the
benefits passed on to the consumers, interest credit on depreciation and U.I
earning of previous year and taking into account the part release of regulatory
assets and carrying cost as proposed by them the annual revenue required from
sale of energy to its consumers has been estimated by the applicant at Rs.
1630813.00 lakh for 2014 - 2015. Similarly, for the years 2015 – 2016 and 2016
– 2017 total expenditure of Rs. 2091461.00 lakh and Rs. 2325522.00 lakh
respectively have been projected by the applicant and after aforesaid deductions
estimated for those years and considering release of regulatory assets and the
carrying cost claimed, the annual revenue requirement from sale of energy to its
own consumers have been projected at Rs. 1911000.00 lakh and Rs.
2211382.00 lakh respectively.
2.48 With projected revenue requirement of Rs. 1630813.00 lakh from sale of
24785.10 MU of energy to its own consumers, the average cost of supply per unit
has been computed by the applicant at 657.98 paise / kWh for the year 2014 –
2015. Similarly, the average cost of supply for the years 2015 – 2016 and 2016 –
2017 have been projected at Rs. 701.76 paise / kWh and 739.07 paise / kWh
respectively.
2.49 The applicant has proposed for two-part tariff for supply of power by WBSEDCL
to CESC Limited and DPSCL.
2.49.1 It is stated that in view of wide variation of drawal of power during peak period,
normal period and off-peak period of different seasons with respect to the
contract demand as per the Agreement with CESC Limited, monthly fixed charge
for supply of power to CESC Limited is proposed on the basis of the peak power
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
23
requisition of CESC Limited for the month of April each year for sharing of
capacity charge of WBSEDCL for that quantum of power. Based on the ratio of
such projected peak demand of CESC Limited and total demand arises out in
WBSEDCL system during April of each year, the fixed charge against CESC’s
drawl stated to have been computed and accordingly the monthly fixed charges
have been projected at Rs 4764.00 lakh, Rs 2819.00 lakh and Rs 3261.00 lakh
respectively for the years 2014-15, 2015-16 and 2016-17 corresponding to the
projected peak demand of CESC Limited of the concerned year. The applicant
has also stated that in case of drawal of more power by CESC Limited in any
month of an ensuing year than the projected demand of CESC Limited
considered in the computation of fixed charge of the concerned year, the fixed
charge for that month will be proportionately increased. The energy charge
during normal period, peak period and off-peak period for different seasons for all
the three ensuing years have been projected by the applicant considering the
rate for peak period and off-peak period at a level of 120% and 80% respectively
of the rate projected for normal period of the respective season.
2.49.2 The applicant has also projected monthly fixed charge for supply of power to
DPSC at Rs 768.50 lakh, Rs 835.00 lakh and Rs 836.75 lakh for the years 2014-
15, 2015-16 and 2016-17 respectively following the same procedure of
computation of fixed charge as in the case of CESC Limited but corresponding to
the cumulative contractual load of 100 MVA of DPSCL for all the ensuing years
for sharing the capacity charge payable by WBSEDCL for the above quantum of
power. The applicant has submitted that in case of drawal of more power by
DPSCL than the above stated contractual load of 100 MVA in any month, fixed
charge for that month will be proportionately increased. The applicant has
projected energy charge during normal period, peak period and off-peak period
for different seasons for all the three ensuing years considering the rate for peak
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
24
period and off-peak period at a level of 120% and 80% of the projected rate for
normal period of the respective season.
2.49.3 The applicant has, however, stated that the power drawal by DPL from
WBSEDCL is infirm in nature and as such no fixed charge for supply of power to
DPL by WBSEDCL has been proposed for the years 2014-15, 2015-16 and
2016-17. The applicant has projected the energy charges during normal period,
peak period and off-peak period for different seasons for all the three ensuing
years considering the rate for peak period and off-peak period at a level of 110%
and 90% of the rate proposed for normal period of the respective season.
2.50 Changes proposed by WBSEDCL in their tariff for 2014 – 2015, 2015 – 2016 and
2016 – 2017 are as follows.
(a) The demand charge, fixed charge and energy charge for different
categories of supply have been proposed to be revised.
(b) A new tariff category for Traction (Metro) has been proposed from the
year 2014 – 2015 as the Metro rail service which is scheduled to start
functioning from the year 2014 – 2015. Those metro services cover
integrated area of operation of CESC and WBSEDCL and WBSEDCL is
willing to give power supply to those metro services at a tariff that of
CESC Limited or at most at same level with CESC Limited for such
services.
(c) Voltage wise graded load factor rebate have been proposed to be
continued for EHV and HV industrial consumers and also for industrial
consumers under Rate B-ID (Industrial) category during the years 2014 –
2015, 2015 – 2016 and 2016 – 2017 at the existing rate given in tariff
order for 2013 – 2014. It is also proposed that the load factor rebate shall
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
25
be given as per the existing procedure till issuance of the tariff order for
2014 – 2015, but on issuance of the tariff order for 2014 – 2015 load
factor rebates shall only be applicable if the payment is made within the
due date.
(d) WBSEDCL has proposed to continue with the additional rebate to the
industrial consumer whose contract demand is 1.5 MVA or above at the
existing rate but at the revised rate prospectively after issuance of the
tariff order.
(e) Load factor surcharge is proposed to be continued for EHV and HV
industrial and commercial consumers and L&MV industrial consumers
under rate B-ID (industrial) and L&MV commercial consumers under rate
B-ID (commercial) as per existing methodology given in the tariff order for
2013 – 2014 if the load factor falls below 30%.
(f) WBSEDCL has also proposed to continue with the power factor (P.F.)
rebate and surcharge for the EHV and HV industrial consumers and
L&MV industrial consumers under rate B-ID (Industrial) and also for
consumers at the existing rates given in the tariff order for 2013 – 2014
under Rate T(a) and T(b). It is also proposed that the power factor rebate
shall be applicable at the existing procedure till issuance of the tariff order
for 2014 – 2015 but shall be applicable if the payment of energy bill is
made within the due date after the issuance of the tariff order for 2014 –
2015.
(g) To reduce drawal of load in peak period and to shift the load to off-peak
period for 33 kV and 132 kV industrial consumers having monthly
consumption above 1.0 MU, WBSEDCL has proposed to introduce a
rebate equivalent to the difference of the following two:
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
26
i) Demand charge calculated as per regulation 4.3.6 of the Tariff
Regulations; and
ii) Demand charge computed based on the maximum demand of
normal period or maximum demand of peak period or contract
demand in case of off-peak period or 85% of contract demand
whichever is higher, if those industries keep their maximum
demand during off-peak period within 130% of contract demand.
The above rebates shall be effective prospectively on issuance of tariff
order for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 subject to
the condition that payment is made within the due date.
Similarly for the above consumers keeping their maximum demand during
off-peak period within 130% of contract demand, a rebate equivalent to
the difference of the following two has also been proposed:
i) Additional demand charge calculated as per regulation 4.7.2 of
Tariff Regulations; and
ii) Computation methodology for additional demand charge for the
normal and peak period will be as per regulation 4.7.2 of Tariff
Regulations but there will be no additional demand charge
applicable for off-peak period.
The above rebates shall be effective prospectively on issuance of tariff
order for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 subject to
the condition that payment is made within the due date.
(h) Other terms and conditions are proposed to be remained unaltered.
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER - 3 OBJECTIONS AND SUGGESTIONS
West Bengal Electricity Regulatory Commission 27
3.1 Suggestions, objections and comments on the tariff application of WBSEDCL for
the fourth control period covering the years 2014-15, 2015-16 and 2016-17 have
been received within 11.04.2014 i.e., the due date from the persons are
mentioned in paragraph 1.6 of Chapter-1. The main points of the suggestions,
objections and comments etc. are summarized in the following paragraphs in this
chapter. The Commission’s views on the relevant objections, comments etc. are
also recorded in this Chapter.
3.2 ESS DEE Aluminium Limited made their submission and proposed for following
relief relating to their unit at Hoera:
• A temporary relief with a 50 per cent subsidy for a period of 5 years
related to our power bills.
• A rebate or a reduction in the rates on the power bills.
On this issue commission is of the opinion that the tariff setting principle cannot
be based on the problem of individual consumer. The differentiation of price can
be done on the basis of certain parameters under section 62(3) of the Act which
will be applicable for all who satisfies the conditions of the parameters as
designed in the tariff structure. Moreover subsidy is an issue that is to be
provided by any authority other than Commission or licensee.
3.3 Ganatantrik Nagarik Samity, Howrah (in short ‘GNS’) has made their submission
pertaining to determination of tariff of WBSEDCL for the fourth control period
against which Commission’s views are given as follows:
3.3.1 GNS proposed that the consumers should be given incentives for consuming
less power. According to GNS, the benchmark consumption of each domestic
and commercial consumer can be derived through a suitable and transparent
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 28
process based on average consumption of last three years. Thereafter, whoever
consumes less power in a month should be given an incentive in tariff on a
graded scale.
The Commission has noted the point and considering number of practical
problems of its implementation such as consumer specific continuous monitoring
on each billing cycle and the resultant load of it on information system of the
licensee, the Commission decides to the existing slab system as this also helps
in to achieve the same objective.
3.3.2 According to GNS all companies including WBSEDCL should extensively
undertake forestation programme and other environmental projects.. According
to GNS they have not found this aspect in the financial data furnished by the
WBSEDCL. Thus Commission should direct WBSEDCL to make adequate
provision for spending on environmental aspects.
The issues raised are governed by other different laws where such matter can be
tackled by the appropriate authority under those laws. Thus, commission is not in
a position to give any direction in this regard. However, in future if WBSEDCL is
found to be penalized for non-compliance of such laws by the appropriate
authority under any statue then such expenditure for non-compliance will not be
passed through the tariff.
3.3.3 WBSEDCL has proposed equalization of tariff for its rural and urban consumers.
On this issue GNS is of opinion that standards of performance in rural and urban
areas for this licensee should also be the same. In other words, they cannot
claim relaxed standards for serving rural consumers.
On this matter commission has gone through the application of WBSEDCL and
has not find any adequate reasoning in their tariff proposal for such equalization
of the rates except in Form 3.1 of Annexure-3 in Volume IV of the tariff
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 29
application for fourth control period where same rate has been simply displayed
for LV & MV ( Low Voltage & Medium Voltage) category of consumers. On the
other hand Commission has find merit on the issues raised by GNS. In view of
such fact for this year of 2014-15 the proposal of WBSEDCL for equalization of
tariff in rural and urban segment for the type of consumer in domestic,
commercial and industrial segment is not being considered. If WBSEDCL
intends to make the above proposal effective from future year then WBSEDCL
should submit the said proposal of equalization in rate with sufficient justification
along with the APR application for the year 2014-15 so that such reasoning can
be gone through stake-holders consultation for due consideration by this
Commission. However while submitting such proposal through APR application
for 2014-15 WBSEDCL shall clearly spelt out that they are agreeable to same
standard of performance for rural LV&MV and urban LV & MV consumers and
thus the norms of different deliverables in urban areas as applicable under West
Bengal Electricity Regulatory Commission Standard of Performance Regulation,
2010 as amended till date will also be applicable for rural areas and for the
purpose any regulatory order on this matter will be sufficient for WBSEDCL for
any regulatory purpose. In such case if WBSEDCL requires to increase their
logistic, resource and infrastructure cost such as mobile van etc. then that shall
also be included in the proposal along with detail reasoning and calculations. If
there is no requirement of additional infrastructure, resource or logistic support
then also that is to be shown with detail reasoning that how the existing
resources will serve the purpose. On getting such proposal if there is merit
Commission will consider the proposal for the ensuing years from 2016-17.
3.3.4 According to GNS alarming trend is noticed from the annual report of WBSEDCL
available in the website of the Commission regarding compensation paid to the
consumers by WBSEDCL. This points out towards low grade service offered to
WBSEDCL’s consumers. Also there is a serious gap between the cases paid off
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 30
and unpaid. It goes without saying that this compensation money should not be
loaded upon the consumers of WBSEDCL. The compensation amount payable
(full payable amount should be considered, as many cases are yet to be settled)
should be transparently deducted from WBSEDCL’s allowed revenue. The
disturbing issue of poor service is also required to be addressed through
appropriate directions. Also, the Commission may like to examine why there is
such big gap between compensation payable and paid. We are afraid that
WBSEDCL is not obeying the directions of the authorities.
Commission does not allow the compensation amount as a pass through
element in tariff. Regarding big gap between compensation payable and paid
Commission is taking appropriate steps.
3.3.5 It is crystal clear from the annexure to the petition of WBSEDCL that their
transmission and distribution losses are increasing over the years. This is nothing
but inefficiency. Such high loss will give rise to higher finance cost to be
eventually borne by the consumers of WBSEDCL. This is impermissible.
Commission has noticed the matter and is issuing appropriate direction in the
relevant chapter. The finance cost against the excess power purchase cost on
account of excess distribution loss over the normative value of 17.5% will be
dealt in accordance with the Tariff Regulations.
3.3.6 According to GNS the tariff proposed by WBSEDCL upon CESC Limited, is
extremely high resulting into huge tariff increase for consumers of CESC Limited.
On this issue GNS has following observations:
i) On the very onset of their view on the issue GNS mentioned that they
cannot accept that the consumers of CESC Limited would be sacrificed
for the consumers of WBSEDCL. Equity has to prevail in the State of
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 31
West Bengal. Thus CESC’s consumers should not be asked to subsidize
consumers of WBSEDCL.
ii) According to GNS they are also not sure of the basis of calculation, if any,
of Fixed Cost Working out to Rs. 57168 lakh, Rs. 33828 lakh and Rs.
39132 lakh for the three years 2014-15, 2015-16 and 2016-17, as
proposed by WBSEDCL. This aspect needs to be carefully looked into by
the Commission.
iii) GNS expresses concern with the proposal of WBSEDCL for steep rise of
tariff charged to CESC Limited to a level which is far more than the
average tariff proposed by WBSEDCL. According to GNS the present
tariff charged on CESC Limited by WBSEDCL is around 85% of
WBSEDCL’s consumer tariff. Against this WBSEDCL has proposed tariffs
for CESC Limited which are 11%-12% more than its consumer tariff which
according to GNS is an anomaly. Tariff charged by one licensee situated
in West Bengal to another licensee of the State which serves the capital
city, cannot be fixed at such disproportionate high levels, particularly
when the supply is made at a very high voltage.
iv) On this matter GNS has referred the consumer composition of CESC.
GNS also refers to their objection on CESC Limited’s tariff petition. GNS
refers to paragraph 3.4, page 11 of tariff petition of CESC where it is
mentioned that “For example, in its 27 lakh consumer base, CESC has
over 14 Lakh of consumer accounting for around 880 MU sales – a
meager average sale of around 50 Units a consumer per month”.
According to GNS interest of these 14 lakh consumers needs to be
looked into, particularly when CESC Limited is not getting power directly
from WBPDCL. WBPDCL power is cheaper. Peak power demand occurs
in the evening for any Licensee largely because of demands of small
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 32
consumers who needs such power only for this time. Purpose of supply is
a stipulated consideration for differentiation of tariff, envisaged in the Act
and should be given due weightage. Also tariff specified by the
Commission for WBSEDCL considers lower tariff and additional rebates
for power procurement at 132 KV. Considering relative tariffs of two
licensees and the fact that more than 50% of CESC’s consumers are
small, such tariff to Licensees should not exceed 50% to 60% of the
average cost of supply of WBSEDCL.
v) That urgent and careful consideration of the Commission is required for
the simple reason that inter-licensee exchange of power between two
West Bengal Licensees should assist each other in balancing their
demands and to cater to large number of small consumers embedded in
their system for whom they have supply obligations. In fact, we reiterate
our proposal that there is no point in CESC Limited buying power from
WBSEDCL as they can procure power directly from WBPDCL. CESC
Limited should be directed to make purchase from WBPDCL, a far more
cost effective source. This will reduce the burden on CESC Limited’s
consumers.
vi) GNS further pointed out that power purchased from WBPDCL is sold by
WBSEDCL to CESC Limited. Such rate should not exceed the average
rate at which power is sold by WBPDCL to WBSEDCL plus 20 Paise per
Kilowatt-hour towards transmission charges. Such fixation will go to
protect CESC Limited’s consumers’ interest.
vii) GNS is of the opinion that CESC Limited should be encouraged to
procure electricity from other sources at lesser cost. CESC Limited should
be directed to seek proper mix of power, including buying power from the
power exchange where the rates are much lower.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 33
On the above issue commission has gone through detailed examination and has
come to following conclusions for action:
i) Commission vide letter no. WBERC/TP-61/13-14/1956 dated 18.03.2014
has asked WBSEDCL to submit detail calculation procedure for two part
tariff that is to be considered for sale of power by WBSEDCL to CESC.
Accordingly WBSEDCL has submitted their reply. Commission has found
that the price determination methodology along with associated terms and
conditions are reasonable for all stake holders. Thus, while determining
such selling price of power by WBSEDCL to CESC Limited the
Commission has followed the procedure as adopted by WBSEDCL. Here
commission noted that WBSEDCL has proposed the sale of power in
trading mode as they have kept a margin. On this issue commission has
certain observations which are discussed while determining the two part
tariff for sale of power by WBSEDCL to CESC. Thus the specific
proposal of GNS on price rate of purchase of power by CESC from
WBSEDC L is not acceptable to the Commission.
ii) As the proposed tariff for purchase of power by CESC from WBSEDCL
has followed a rational principle of two part tariff mechanism thus the
question of cross-subsidization of WBSEDCL consumers by CESC
consumer does not arises as such tariff recovers the actual cost.
However, such two part tariff mechanism can be made applicable
prospectively so that both the parties can adopt appropriate scheduling
philosophy and also SLDC can make it self-prepared for such scheduling
as detailed in subsequent paragraph 3.6.1.
iii) It is further observed that due to this proposed two part tariff the average
price for sale of power by WBSEDCL to CESC Limited in view of the
projected volume the selling price to CESC Limited is reasonable for the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 34
years 2014-15, 2015-16 and 2016-17. The relative increase in last two
years occur due to skewed drawal pattern of CESC for those two years
whereas in first year it is almost same to the existing level.
iv) Commission is of the opinion that the claim of GNS that the purchase
price of power by CESC from WBSEDCL shall not be more than 50 to
60% of the average cost of supply to the retail consumers of WBSEDCL
has no merit as because GNS could not justify such price with supporting
calculation.
v) Regarding purchase of power by CESC from WBPDCL instead of
WBSEDCL, Commission has no jurisdiction to give such a specific order
unless concerned parties agree. However, on this issue details will be
discussed in the tariff order of CESC for 2014-15 and also some part in
the direction part of this order.
vi) Regarding other issues no discussion has been done here as that is not
the relevant issues pertaining to tariff fixation of WBSEDCL.
3.4 On the tariff application of WBSEDCL Eastern Railway and South Eastern
Railway have made their submission which are discussed in subsequent
paragraphs:
3.4.1 In order to get a tariff at a rate lesser than industrial tariff and at a reasonable
rate both the railways has referred three documents such as certain
recommendations of Public Accounts Committee (1990-91) of Lok Sabha , a
communication from Ministry of Power vide letter no. 37/34/90D (SEB) dated
01.05.1991 and also Article 287 of the Constitution.
Commission has noted all the above points along with subsequent development
of Electricity Act 2003 and different rules/regulations/policies under such Act and
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 35
specially tariff policy which are being framed on the background of all such
available reference and accordingly dealt the issue of traction tariff in the relevant
chapters.
3.4.2 Both railways say that –
i) while deciding the electricity tariff all the tariff design principles must be
kept in view in order to establish the true linkage of tariffs within the cost
of service; and
ii) reduction in T & D losses would generate savings and there is no
requirements of hike/ revision of traction tariff. Due to high T& D loss they
have to bear the cost.
Commission has noted the points and determined the tariff in accordance with
the Tariff Regulations and thus the burden of the excess distribution loss is being
restricted to a reasonable extent in accordance with the Tariff Regulations.
3.4.3 The proposed Demand charge of Rs. 320 / KVA / month for the year 2014-15,
2015-16 & 2016-17 for Railway Traction is higher as compared to those levied by
other neighboring power supply authorities like JSEB, DISCOM of OPTCL, where
the demand charge is Rs. 220/ KVA / month and Rs. 250 / KVA / month
respectively. Advocating introduction of demand charge on the basis of
simultaneous Maximum Demand of railways at different point both the railways
referred the letter No. 5-M (M&C)(16)/88 dated 21.10.88 addressed to Chairman
of Electricity Boards from Member (E & C) , Ministry of Energy , CEA , New
Delhi. Both the railways have also referred the order of Hon’ble Rajasthan
Electricity Regulatory commission vide S.L. No. 221 of their tariff order 2001
dated 24.3.2001. In the same line both railways request for combined load factor
of all the points for Railway traction to avail load factor rebate.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 36
Commission after comparing the demand charge of other states also finds that
the proposal of WBSEDCL is not an irrational proposal and is in accordance with
Tariff Regulation. Commission feels that demand charge and load factor rebate
of retail tariff of the consumer is determined on the basis of number of factors
with different objectives as determined by the concerned Commission and thus is
not expected to be merely influenced by order of any other commission .
However, for licensee under jurisdiction of WBERC such demand charge as
determined cannot cross the ceiling as provided through formula in the Tariff
Regulation. Regarding the referred letter Commission holds the same view as it
has taken under paragraph 3.4.1 in relation to some other documents.
Accordingly, demand charge has been determined while fixing the tariff and thus
is not in favour of introducing demand charges or load factor rebate on the basis
of aggregation of all the point of supply.
3.4.4 WBSEDCL has enhanced MVCA (Monthly Variable Cost Adjustment) charges
from 11 paisa to 26 paisa/ kWh from the month of December, 2013 and again
from 26 paisa to 36 paisa/ kWh from February, 2014. Therefore, enhancement of
proposed energy charge does not arise as MVCA charges have already been
increased by 25 paisa/ kWh (within short interval i.e. from December, 2013 to
February, 2014).
MVCA and tariff determination of a year is completely separate issue and thus
Commission does not considered the above point.
3.4.5 That Hon’ble WBERC may keep provision of power factor rebate clause for
power factor above 86% in Railway traction tariff as against 92%.
Power factor rebate shall be applicable to all categories of consumer supply at
high voltage including railway traction from the year 2014-15 prospectively
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 37
instead of only high voltage industrial consumer as now exists. The power rebate
shall, however, be applicable for power factor above 92%.
3.4.6 According to both railways direct subsidy over 20% to needy Consumers should
be borne by State Government as direct subsidy as per Para 65 of Electricity act
& Para 8.3 of National Tariff Policy and not by Railways. In this context Hon’ble
APTEL give reference to APPEAL no. 79 06 2005 in Appellate Tribunal (Union of
India verses Andhra Pradesh State Commission dated 02.03.06).
On this issue Commission is of the opinion that Tariff Policy allows that the tariff
of any particular class of consumer shall be within ± 20 % of the average cost of
supply and accordingly tariff has been fixed for all classes of consumer including
that of the railways.
3.4.7 During feed extension in traction system, the voltage at the farthest end becomes
very low which is less than the minimum voltage required to run electric
locomotive as the distance of feeding becomes double the feeding zone of single
TSS. During feed extension, penalty is not taken from Railway in case of State
Electricity Board’s interest. If on Railway’s interest feed extension occurred
penalty for bursting of contract demand is accounted against Railway. Both
railways wants that such charges for over drawal above the contract demand at a
single point may not become applicable during feed extension.
The problem referred by both the railways is a technical problem which can be
effectively reduced through appropriate maintenance. The existing mode of
practice of sharing the impact of over drawal due to such feed extension is found
to be rational as the practice mode adopted will keep both the supplier and buyer
on their toe to have a good maintenance. Thus Commission does not want to
disturb the existing arrangement.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 38
3.5 Modern India Con-Cast Limited have stated number of issues which are
discussed below:
3.5.1 WBSEDCL has proposed certain rebate under paragraph 9.1 (e) in Volume 1 of
the tariff application. Above industries have mentioned the above rebates and
referred the statement of WBSEDCL that the entire situation would be reviewed
after 1st
In this context Commission likes to make it clear that WBSEDCL has proposed
the review after observing the effect of first six months of FY 2015 as a result of
the above rebate. Commission further want to make it clear to all stakeholders
that once the tariff is determined for an ensuing year no review of tariff for that
ensuing year can be under taken in pursuance to section 62(4) of the Act except
the charges under FPPCA as permitted under the section. Thus review of any
tariff design can always be done during tariff order of any future ensuing year.
six months.
3.5.2 WBSEDCL has proposed some benefits of demand charge beyond 100% and
upto 130% if the load is shifted from evening peak to off-peak hours. On these
issues the above industries have mentioned that the following three points are
not clear.
i) What would be the fate if the drawal is beyond 130%?
ii) Whether the additional demand drawn during off-peak hour would be
included or excluded from the maximum demand recorded?
iii) Whether the additional energy consumed beyond 100% and upto 130%
would be considered in the computation of Load Factor or not. If
considered, would the same be calculated on the basis of variable
demand or fixed demand or variable demand capped to maximum
demand recorded during normal/ peak hour only as the consumer is
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 39
allowed to draw 130% of CD without any demand charge during off-peak
hours. Hence the same must be clarified for calculation of Load factor.
The above points have been noted by the Commission and will be duly
addressed in the relevant portion of the tariff orders. Drawal above 130% will be
as per Regulation.
3.5.3 According to Modern India Con-cast Limited such additional benefit as mentioned
in paragraph 3.5.1 and 3.5.2 by the proposed tariff as well as by shifting of load
from peak to off-peak and even after drawal of additional load upto 130% at the
off-peak hours unless the mode of computation of Load Factor is changed.
The commission is of the opinion that the mode of computation of Load factor
rebate has already been finalized in the Tariff Regulations. Thus it cannot be
deviated in this tariff order. Moreover by shifting the load from peak to off-
peak/normal hours the benefit of lower energy charge and rebate equivalent to
additional demand charge during off-peak period will be there.
3.5.4 The above industries specifically requested the Commission not to claim any
further arrear charges.
The Commission on this issue has decided to allow WBSEDCL to recover /
refund the adjustable amount, if any, in instalment as may be decided by the
Commission in subsequent chapter.
3.5.5 The industries also requested in their submission to maintain the ratio of Peak/
Normal & Off-peak/ Normal charge like previous years.
The point has been noted by the Commission.
3.5.6 In view of WBSEDCL’s proposal for new tariff for “Metro Railways” where
Energy/ Demand charges have been considered at par with demand charge of
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 40
CESC allowed for Metro Railways, the above industries has requested similar
consideration in the determination of tariff to Steel industries under WBSEDCL
and keeping the same at par with DVC. In this context above industries
appreciate the quality of power supply and service to consumers given by
WBSEDCL. But they have also mentioned the tariff at least for the Steel sector
needs to be competitive with DVC.
The WBSEDCL’s proposal that Metro Railways rate shall be equalized with that
of CESC has no merit because then on the logic of the same ground the tariff of
different categories of consumer of both CESC and WBSEDCL may require to be
equalized. In such case there is possibility of loading of different other consumers
with further cross-subsidy burden. However, while designing the tariff structure
for metro railway as it is a new category at high voltage and has no existing
influence on level of cross- subsidization and such supply is for public utility
service its rates are being kept below the average cost of supply subject to lower
ceiling as specified in paragraph (vii) of regulation 2.2.1 of the Tariff Regulation.
3.5.7 To allow the rebate on ECS payment to the consumers paying the electricity bills
through Letter of Credit within due date.
Letter of Credit is provided as a payment security mechanism in lieu of cash
security deposit. It is not meant for normal bill payment mechanism. Thus
commission does not agree to the proposal.
3.6 CESC Ltd. has made submission which are as follows:
3.6.1 WBSEDCL has proposed two part tariff for sale of electricity to CESC in its tariff
petition for the years 2014-15, 2015-16 and 2016-17. On this aspect CESC has
following submission:
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 41
a) CESC does not like to offer any comment on two part tariff structure per
se. According to CESC as per the Electricity Act, 2003, it is the
prerogative of the Hon’ble Commission to decide on the structure issues.
b) The petition does not contain necessary calculations of fixed cost
proposed for recovery. On such issue CESC has requested Commission
to examine/ review the basis of computation of fixed charge in the
proposed two part tariff structure for each of the ensuing year of the 4th
c) According to CESC the two part tariff structure containing highly loaded
fixed charge component is generally aimed at controlling the drawal
pattern of large consumers having necessary control on their electricity
consumption pattern. CESC pointed out that licensees having universal
service obligations virtually have no control on its overall drawal pattern,
which is merely the summation of drawal patterns of all its consumers,
majority of whom have consumption of less than 50 units per month in
case of CESC. They also pointed out that any steep rise following a two
part structure will go particularly to the detriment of these smaller
consumers of CESC.
control period.
d) The proposed two part tariff may not be allowed to contain any margin
because that will go against the interest of CESC consumers.
e) The peak demand of WBSEDCL including CESC’s drawal is not always
met from the capacity under long term PPA of WBSEDCL exclusively, as,
in order to manage the overall demand, WBSEDCL undertakes various
short term transactions like short term procurement of power, banking etc.
Thus the impact of such short term procurement or banked energy needs
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 42
to be considered appropriately in arriving at the tariff, including fixed
charges, if any, for WBSEDCL for bulk sale to CESC.
f) CESC’s maximum drawal pattern across various months is not
necessarily coincident with maximum demand pattern of WBSEDCL and
thus due cognizance may kindly be taken of the time of CESC’s
maximum drawal, whether it is coincident with State’s maximum demand
and how it has impacted the maximum demand and outgo of WBSEDCL.
g) CESC is presently drawing power from WBSEDCL from a number of
import points. Load is distributed over these points to operationally
provide the most stable option for Kolkata power system. Since drawal
over these points is merely distribution of WBSEDCL purchase across
various sub-stations, thus fixed charge may be computed combining
drawal of CESC across various points as a whole and not point-wise, in
case the two-part structure is being introduced.
h) The two part tariff regime would require an entirely different dispatch
philosophy for inter licensee interchange of power compared to the
prevailing dispatch mechanism followed under single part tariff. Thus, two
part tariff may be made prospective only to afford an opportunity for
CESC to readjust the dispatch protocol in its consumers’ interest. In this
context Commission may give due cognizance of the fact that in case of
adaption of two part tariff capacity will have to be reserved for use by
CESC, regardless of dispatch and such capacity will be dispatched by
CESC whenever economic decisions warrant so either for its own
consumers or for export.
i) Any support rendered during exigency for a short period may not be
considered for steep rise in fixed charge payable during that month.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 43
On the above submission of CESC the Commission has following observations
alongwith Commission’s decision:
a. Commission finds that none of the objectors has any objection on the
principle of the two part tariff for purchase of power by CESC from
WBSEDCL but at the same time they have brought number of issues
related to methodology of fixed charge determination and overall impact
of determined tariff over the retail price of CESC. Thus commission in
principally decides to introduce two part tariff prospectively from March,
2015 as under two part regime the scheduling principle is different than
that of single part tariff and it requires a preparatory time for both CESC
and SLDC for their scheduling structure and accounting purpose.
WBSEDCL has merely proposed the fixed charge without mentioning the
computational methodology in detail. Thus, the Commission has taken
steps as already detailed in paragraph 3.3.6 of this order. As per the
relevant power purchase agreement the energy charge computation is
based on combine drawal of CESC across various points as a whole and
not point-wise. Regarding fixed/demand charge computation the PPA is
silent. Thus Commission decides that in line with the practice of sell of
power from central sector power utility to different licensees in the
country, the fixed charge component under two part tariff structure for sell
of power by WBSEDCL to CESC shall also be based on combined drawal
at different drawal points because in the fixed charge component the
proportionate capacity charge of different generating sources from where
WBSEDCL is procuring power has been considered along with the
proportionate CTU & STU charges. Commission thus issued appropriate
direction in this order where two part tariff is determined.
b. On the issue of fixed charge calculation methodology Commission has
already provided its view in paragraph 3.3.6.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 44
c. The argument of disadvantage of two part tariff on the ground that CESC
has no control over the load pattern of the consumer as explained above
does not stand good as because if such logic is accepted then in case of
sale of power from generator to licensee also has to be considered in
same line resulting into less recovery of capacity charges of the
generating station.
d. Regarding margin issue Commission finds that volume of energy sell by
WBSEDCL to CESC is large amount and could not be available from its
own generating station and thus has to be covered through trading
activity only. Thus a trading margin is entitled to WBSEDCL. Thus the
purchase price of CESC for power from WBSEDCL may have a
component of margin which will be decided by the Commission in
appropriate chapter.
e. From the submitted documents of WBSEDCL as mentioned in paragraph
3.3.6, the Commission has noted that the maximum drawal considered for
fixed charge computation is less than the projected maximum drawal in
an ensuing year which means that the short term purchase of power by
WBSEDCL as well as non-coincidence of maximum demand pattern of
WBSEDCL and CESC Limited’s maximum demand have been
considered. However, to protect the interest of the consumers of
WBSEDCL any short term procurement over the agreed maximum drawal
have been covered through proportionate fixed charge on daily basis
followed by proposed claims in the proposed PPA as mentioned in the
direction chapter.
f. Regarding a short time support of power to CESC during exigency from
WBSEDCL an appropriate measures has been provided under the
direction chapter.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 45
3.6.2 CESC respectfully submits before the Hon’ble Commission that the interest of
consumers of both the licensees may be considered while regulating tariff in case
of interchange of power between two licensees. CESC referred the order dated 1
According to CESC the present tariff of WBSEDCL charged to CESC works out
to 573 paise per unit against CESC’s average selling rate of 652 paise per unit.
According to CESC the current rate of 573 paise per unit is significantly higher
than the prevailing price discovered at market through Power Exchanges etc.
CESC has also furnished a calculation in Annex A of their submission to show
that the proposed tariff under the new structure for CESC is about 801 paise per
unit in 2015-16 and 851 paise per unit in 2016-17 i.e., an increase of 228 paise
per unit (40%) and 277 paise per unit (48%) respectively.
CESC pointed out that the proposed tariff of WBSEDCL for bulk sale to CESC at
EHV level is even higher than the proposed average consumer retail tariff of
WBSEDCL in 2015-16 and 2016-17.
According to CESC the proposed tariff structure of WBSEDCL will force to steep
increase in CESC tariff during 2015-16 and 2016- 17.
In view of above submissions CESC request the following:
December, 2012, in respect of tariff of WBSEDCL for the years 2011-12 and
2012-13, where the Hon’ble Commission has laid down that in case of tariff for
inter-licensee transactions - “...the purchase price of power by one licensee from
another licensee is being regulated keeping in view of the interest of the
consumers of both the Licensees.”
a) Any increase in tariff chargeable by WBSEDCL to CESC, should be made
gradual in nature in order to avoid any tariff shock for the end consumers.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 46
b) The commission may decide the matter after considering the interest of
the consumers in the State as a whole.
In this matter Commission decided the two-part tariff structure in a manner so
that the interest of the consumer of both the licensees can be served to a
reasonable extent under the different constrain. The Commission finds that in
2015-16 and 2016-17 though the price per unit is relatively high due to skewed
drawal pattern by CESC, but since the proposed volume of drawal is quite less
than the previous years its impact in average cost of supply is less and found to
be 767.31 paisa / unit and 816.41 paisa / unit respectively. Considering all
aspects including the rationality of the design the above price for sale of power to
CESC by WBSEDCL in 2015-16 and 2016-17 is being considered.
3.6.3 CESC refers Regulations framed by the Hon’ble Commission where fixed
charges can be introduced only at a rate not higher than that of existing highest
rate from consumers. According to CESC the fixed charge proposal works out to
Rs. 768 per KVA per month in 2014-15, Rs. 854 per KVA per month in 2015-16
and Rs. 847 per KVA per month in 2016-17, which is substantially higher than
the existing highest fixed charge of Rs. 56 per KVA per month for WBSEDCL
consumers. CESC also mention that the proposed fixed charge is also
significantly higher even after considering the existing highest demand charge for
the WBSEDCL consumers, which is Rs. 317 per KVA per month.
CESC’s above contention is applicable for sell of power by a distribution licensee
to it’s consumer in his area of supply. As in this instant case the sale of power to
CESC by WBSEDCL is a transaction between two distribution licensees of
different area of supply thus the above contention is not as per the regulation.
3.6.4 CESC mentioned that Commission may consider commensurate reduction in
support required by CESC from WBSEDCL in the year 2014-15 onwards, after
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 47
commissioning of the power station of Haldia Energy Limited, while regulating
tariff for WBSEDCL for sale to CESC.
As the tariff is two part and CESC has not objected the drawal energy quantum
of CESC as proposed by WBSEDC, the Commission has nothing to comment.
3.7 Indian Tea Association (ITA)has stated the followings:
3.7.1 The WBSEDCL has not been complying with the deadlines in filing its petitions
as defined in the Regulations. As per the regulations, WBSEDCL is required to
file the Tariff Petition by 30th Nov of the preceding year. The Hon’ble Commission
had extended the time for submission twice, first upto 31st December 2013 and
second until 15th of January 2014, in order to facilitate the submission.
WBSEDCL had failed to submit the petition before the deadlines and has
submitted its petition on 12th
The submission of ITA has merits and accordingly direction is issued in the
chapter of the direction.
February, 2014 after consequent directives towards
submission, which might result in delays in issuance of tariff order. It would
create accumulated gap and corresponding interest cost. This would lead to
burdening of charges on current consumers. Since the delay is purely attributable
to the WBSEDCL, the Hon’ble Commission is requested not to allow any gap and
recovery of interest charges on the same.
3.7.2 There are number of anomalies in the data provided by WBSEDCL with regard to
sales in Lifeline category. While the growth in consumers in this category during
FY 2014-15 to FY 2016-17 has been projected to be 9.83%, the sales to this
category has been projected to increase by 36.63%. Moreover, as per the tariff
schedule, average quarterly consumption for this category of consumers cannot
go beyond 75 units which is being violated in the year of FY 2016-17 with
average quarterly consumption being 76.41 units. Thus it requested the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 48
Commission to consider reasonable assumptions for the purpose of sales
projection for all consumer categories and reduced the power purchase cost for
such type of over-estimation.
In the above context Commission feels that the growth in sales is likely to
surpass the growth in consumer strength of life-line category as due to access of
electricity by those types of consumer the electricity dependent life – style and
economic activity is likely to gradually increase. Thus there is no-anomaly on this
account. However, for 2016-17 the anomaly will be rectified by considering per
consumer consumption in the tariff order for 2016-17. In this regard a direction is
being given in the direction chapter.
3.7.3 On excess distribution loss issues ITA has following observation:
a) The capital expenditure estimation is very huge for FY 2013-14 and FY
2015-16 compared to the past actual trend of capital expenditure. After
capital expenditure of Rs. 4969 Crore incurred by the WBSEDCL on the
distribution network during FY 10- FY 13, no improvement on the efficiency
parameters i.e. distribution losses is observed. This raises serious concern
on the appropriateness of the capital expenditure incurred in the past
years. The Hon’ble Commission is requested to study the capital schemes
proposed by WBSEDCL in detail and direct them to submit cost benefit
analysis against each scheme both from technical and financial aspects
before approval.
b) Further, Hon’ble Commission is requested to consider the approved loss
level 17.50 for FY 2013-14 as the base for projection and therefore
approve an annual reduction of 1% each year (in line with Abraham
Committee recommendations of 1% reduction in loss for utilities having
losses below 20%).
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 49
c) Commission shall not allow the inefficiencies of WBSEDCL to be passed
on to the consumers in the State.
d) As the above proposed measures may lead to a revision in the total
energy requirement for the control period thus Commission shall disallow
any power purchase cost due to non-achievement of target distribution
losses in this order and during truing up.
On this issue of consideration of normative distributions loss and disallowance of
power purchase cost Commission will follow the Tariff Regulation which has
specific provisions on this issue that has been framed after due public
consultation. Accordingly power purchase quantum will also be decided both in
tariff order or subsequent APR / FPPCA order for the concerned year. On the
issue of increasing distribution loss inspite of huge capital expenditure
Commission is issuing a certain directive in direction chapter.
3.7.4 It is observed that the tariff proposed by WBPDCL is higher as compared with the
trend of tariff for state generating stations approved by the Hon’ble Commission
in the previous Control Period. Further, CERC has come out with revised tariff
regulations for determination of Tariff which indicates that different parameters
have become more stringent. In view of such revised regulations, WBSEDCL’s
proposed increase in fixed and variable charges from the CGS is not justified and
therefore should be considered as per the reasonable estimates.
Commission has noted the point and will apply due prudence while determining
such power purchase cost.
3.7.5 In the MYT Petition, WBSEDCL has projected huge cost towards outsourcing of
manpower related to distribution as well as outsourcing of other works (excluding
manpower) for distribution. It is observed that on one end the distribution
licensee is proposing to fill-up the vacant positions during the control period and
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 50
has accordingly proposed high employee cost in each year and on the other end
is proposing very high level of outsourcing of manpower cost. Both the
statements are contradictory and reflects the WBSEDCL’s intention of loading
higher employee cost in the tariff. It is requested to the Hon’ble Commission to
direct the utility to conduct a proper HR study to evaluate the actual requirement
of employees and accordingly allow any additional recruitment. The petitioner
has further considered a DA (Dearness Allowance) increase of 12% on average
for the control period which is much higher than the increase in average CPI
index in past five years.
Commission finds no contradiction in the claim of WBSEDCL on account of filling
their vacant position and outsourcing of persons. The area of outsourcing is
clearly defined. Moreover it is the licensees’ business decision that where it
requires employee under regular establishment and where it requires outsourced
services. Commission is not meant for providing management decisions.
However, the latest five DA increase in central government 1.7.2012 to 1.7.2014
is 7%, 8%, 10% ,10%& 7%. Thus, as a rational approach commission considered
the rate of DA increase on every six months by 8.4% which is average of the last
five values. Thus the claim of WBSEDCL of annual increase on DA expenditure
by 12 % is quite reasonable claim.
3.7.6 According to ITA the actual O&M expenses for last 2 years show that the
increase has been a mere 6% during FY 13 and an increase of 13% is estimated
for FY14 which is lower as compared to the increase considered for projection
during the Control Period. Further, it is submitted that the historical trend in
movement of WPI (Wholesale Price index) is considered as a reasonable
measure for projection of O&M expenses by other State Regulatory
Commissions. Accordingly ITA has proposed five year increase in WPI index of
7.29%.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 51
Commission noted the proposal of ITA. Commission also observed that that
Central Electricity Regulatory Commission based on a hybrid index of WPI &
CPI (Consumer Price Index) has considered an annual inflation trend 8.35 %
while fixing the norms of O&M expenses for central sector utilities. This inflation
trend of 8.35 % is computed based on five year average of WPI and CPI indices
for FY 2008-09 to FY 2012-13 considering 60% and 40% weightage on WPI and
CPI respectively. However, while fixing norms of O&M cost (which include
employee cost under regular establishment also) the annual escalation rate on
O&M expenses during the period 2014-2019 has been considered at a lower
value than the inflationary rate of 8.35% as given below along with the reasoning.
i) 6.29 % and 6.81% for coal/lignite and gas power station respectively
which is higher than the actual growth rate of 6.0% for O&M expenses
during 2008-09 to 2012-13.
ii) 3.12% for A/C transmission system. This 3.12% is the 110% of the actual
Compounded Annual Growth Rate (CAGR) (3.02%) of O&M expenses for
A/C transmission system during the period 2008-09 to 2012-13 computed
on the basis of 70% weightage on actual O&M cost of per bay of sub-
station and 30% weightage on actual O&M cost of per CKM transmission
line.
Moreover, it may be noted that due to rapid expansion in the network arising out
of rural electrification and which is now gradually stabilizing to a normal growth
path by this fourth control period, the growth rate of the past trend of the network
or consumer strength or its actual expenditure on the O&M head cannot be relied
on as those will give higher projection. Thus no further discount is considered on
the inflationary trend on the above ground. Considering all the above factors in
similar line with CERC Commission also decided to find out a reasonable annual
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 52
escalation rate for O&M expenses on different distribution head as detailed in
chapter – 5.
3.7.7 WBSEDCL has not provided the complete details for the capital expenditure it
proposes to incur during the Control Period. No scheme wise information for
distribution cap-ex is provided as directed by the Commission in the directives of
previous Tariff Order.
Commission finds that WBSEDCL submitted the detail of capital expenditure in
Forms 1.19(a) and 1.19(b) to Annexure – I of their tariff application and also in
the perspective plan as per Tariff Regulation. The proposed investment has
followed the procedure as specified in the Regulation.
3.7.8 Grossing up of RoE by applicable tax rate is not under the purview of WBERC
Tariff regulations, 2011. The Petitioner is required to claim the tax as per last
year applicable tax liability. ITA proposes that no grossing up be allowed to
WBSEDCL and actual tax paid/ applicable on WBSEDCL each year can be
considered at the time of true-up.
As tax is to be paid within the concern year thus to ensure cash flow Commission
allows payable tax at the rate of Minimum Alternative Tax (MAT) at tariff order
stage on the basis of return on equity subject to truing up on the basis of actual
tax paid during APR stage.
3.7.9 It is also important to point out that WBSEDCL has considered equity addition of
Rs. 128800 Lakh which was shown as capital liability in the Annual accounts of
FY 2012-13. WBSEDCL has submitted that a letter seeking approval conversion
of such liability into equity has been sent to state government for consideration.
The licensee has not explained the usage of the capital liability being converted
to equity. Even if the Government liability is converted to equity, the regulations
do not permit equity employed higher than 30% of the project cost eligible for
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 53
RoE. ITA prays to the Hon’ble Commission that this amount may not be
considered as part of the equity as the conversion is yet to be approved from the
State Government. Further, ITA prays to the Hon’ble Commission to link rate of
RoE to performance of the petitioner as has been done in states like Assam,
Haryana, etc. where Commission allowed only 7% RoE considering poor
performance of utilities. Accordingly, ITA requests the Hon’ble Commission to
approve 10% RoE on a provisional basis to the WBSEDCL and could consider a
higher return in case WBSEDCL is able to meet the desired loss level for each
year of the Control period.
Commission notes the view of ITA and is not considering equity addition unless
the State Government passed such order. Moreover it may be noted that the
deduction in ROE for inefficiency as proposed is always covered through
disallowance of additional power purchase cost due to excess distribution loss
and no pass over of the expenditure to the consumer on account of
compensation payable to the consumer on account of failure in standard of
performance.
3.7.10 ITA prays to WBERC to consider the interest on additional quantum of security
deposit and reduce the same from ARR for the respective years in which the
security deposit exceeds the normative working capital. Alternatively these
surplus security deposits could be utilized for meeting the requirement for carry
forward of regulatory assets for which the utility is claiming additional carrying
cost.
3.7.11 WBSEDCL has claimed past under-recovery on account of APR for 2009-10 and
2010-11 along with carrying cost. The delay in recovery is purely attributable to
the WBSEDCL and results in additional burden on consumers due to carrying
cost. In the current petition, an amount of Rs. 269 Crore has been loaded over
three year period for recovery of the past under recoveries. Moreover, It is
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 54
prayed that no carrying cost should be allowed to WBSEDCL where the delay in
filing APR and recovery can be directly attributable to these inefficiencies.
The Commission has noted the point and will dealt in appropriate manner in
accordance with the Tariff Regulation while computing the carrying Cost.
3.7.12 It seems that WBSEDCL has been negligent in the process of filing of the petition
as can be seen from the errors made in the submissions. It is observed that in
the Outline of the tariff proposal, the petitioner has submitted the “carrying cost of
APR of WBSEDCL 2010-12” for FY 2015-16 as Rs. 20.35 Crore whereas, it has
projected the same cost as Rs 79.12 Lakh in section 6.0 (b).
The point has been noted by the Commission.
3.7.13 The present categorization of the tea estates and the applicable tariff do not
recognize the seasonal nature of the industry and impose uniform application of
demand charges throughout the year, including the lean period. Such application
of general tariff to a seasonal industry is not only burdening the estates but is
also unjustified. ITA also refereed the Tariff Order for WBSEDCL for the year
2007-08 where 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. The
ITA hereby submits that the guidance given by the Hon’ble Commission is posed
with substantial implementation issues and practical difficulties. It is not
practicable for tea estates to routinely apply and pursue such applications for
frequent reduction and enhancement of contract demand by WBSEDCL. In view
of the above cited reasons, ITA prays to the Hon’ble Commission to specify a
separate tariff category for the tea establishments in the state duly recognizing
the seasonal nature and other peculiarities of the industry.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 55
For covering lean season the regulation provide scope of unlimited number of
contract demand reduction and one time contract demand increase in a year. It is
also not implementable that on regular basis contract demand can be changed.
The tariff policy has also emphasized for two part tariff which is a rational tariff
designing method. Each type of industry specific tariff designing is also not an
practical solution. Thus Commission does not agree with the ITA’s proposal.
3.7.14 The irrigation load within the tea establishments may be given with separate
connections for segregation of irrigation load and making the irrigation tariff
applicable in respect of the same on issuance of appropriate orders/ directives by
the Hon’ble Commission. The Hon’ble Commission has in fact applied this
principle towards determination of tariff for the labour lines in the tea gardens
where the end use determines the applicable tariff rate. While the Hon’ble
Commission has made necessary arrangements and given necessary directions
for implementation of the above regulations, the various tea establishments in the
state have been facing severe issues related to fair and transparent
implementation of these regulations by the WBSEDCL. In view of the same, ITA
has also requested to allow similar billing practice of residential accommodation
of the staff and executives within the tea estates in West Bengal through bulk
meters which may gradually be converted to individual connections in the due
course of time.
On the above referred submission the Commission is of the opinion that in case
of implementation problem of any existing regulation there are ways of remedies
by appealing before the appropriate authority under the statue on the basis of
specific case. Under Electricity Act 2003 regarding supply of electricity to
different residential premises within a tea estate there is no problem if the
occupier of the resident applies for such connection under normal domestic
category in accordance with the regulation subject to availability of right of way.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 56
3.7.15 At present, the non-supply to tea estates is being considered on the basis of the
meter reading at the 33 KV sub-station from where 11 KV line emanates for
supply to such estates/ gardens. It is submitted that in a network which is largely
radial in its configuration, a measurement of outages and failures at a higher
voltage can only give a figure which is suppressed in comparison to the actual
extent of outages witnessed at the downstream lower voltage levels. Thus ITA
request that interruption benefit shall be passed on the basis of no supply record
after downloading the MRI records.
Commission has noted the point and issued relevant directions in the direction
chapter.
3.7.16 However, in West Bengal the subsidized categories continue to remain highly
cross-subsidized resulting in additional burden on the HT and industrial
consumers. As per the provisions 61(g) of the Electricity Act 2003, the guiding
principle for determination of tariff is “that the tariff progressively reflects the cost
of supply of electricity and also, reduces and eliminates cross-subsidies within
the period to be specified by the Appropriate Commission;” Therefore, it is
submitted that the consideration of average cost of supply for determination of
tariff for various categories is inappropriate and Hon’ble Commission is
requested to approve tariff for each consumer category based on the voltage-
wise cost of supply during the MYT Control Period. Determination of reasonable
tariff as per the voltage-wise cost of supply would help in accelerating the
industrial growth in the State of West Bengal.
In this regard Commission will follow the methods as provided in the Tariff
Regulation which has been framed after due stake-holders consultation through
previous publication of the draft regulation on tariff.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 57
3.7.17 It is submitted that the existing demand charges for the industrial consumers are
amongst the highest as compared with the neighboring States as well as other
progressive States in the country.
Commission noted that ITA has not compared demand charges with all the
licensee of the neighboring state. Already the demand charge recovered under
the existing formula do not cover the entire fixed charge as should ideally been
done whereas the licensee has to pay the entire charge to the generator and
transmission licensees on the supply chain side. Thus it is not justifiable to
recover lesser demand charge as proposed on the basis of mere comparison
with other states ignoring the other commercial factors.
3.7.18 Further, WBSEDCL has also proposed additional demand charges. ITA would
like to highlight that the consumers are already being discouraged to draw power
during the peak period by way of higher energy charges which are approx. 40%
higher than energy charges during normal period. An additional demand charge
would further penalize the consumers which are already paying higher energy
charges for the power consumption during peak hours. Therefore, the Hon’ble
Commission is requested to disapprove the proposal for additional demand
charges.
Commission finds that there is no proposal of new additional demand charges
except what is exiting under the Tariff Regulation. Rather there are conditional
proposal of indirect relief from the part of additional demand charges through
rebate.
3.7.19 Since, 100% metering already exists in West Bengal and two-part tariff is already
introduced, the Hon’ble Commission is requested to abolish the minimum
charges in the tariff categories applicable for tea establishments in the State of
West Bengal.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 58
As minimum charges is a provision under Tariff Regulation thus It will continue as
decided by the Commission.
3.7.20 ITA wants to bring to the attention of the Hon’ble Commission that in case of tea
gardens drawing bulk power and in the event of the installed meter becoming
defective, WBSEDCL continues to raise provisional bills without bothering to
replace the defective meter. The ITA prays to the Hon’ble Commission to direct
the WBSEDCL for replacement of defective meters within a given timeframe of
15 days from becoming/ being reported as defective and allow for generation of
not more than one provisional bill post identification of defective meter. In case of
inability of WBSEDCL to do so, adequate compensation should be provided to
the consumer for such delays.
In this issue Commission intends to draw attention to the all stakeholders that in
case of non-replacement of defective meter within due period as specified in
West Bengal Electricity Regulatory Commission ( Standards of Performance of
Licensees Relating to Consumer Services ) Regulations, 2010 as amended, the
aggrieved consumer can ask for relief inclusive of compensation under the West
Bengal Electricity Regulatory Commission (Guidelines for Establishment of
Forum for Redressal of Grievance of Consumers and Time and Manner of
Dealing with such Grievance by the Ombudsman) Regulations, 2013 as
amended.
3.7.21 The Petitioner has proposed tariff for Metro Traction category in the current
petition in anticipation of initiation of metro rail services during FY 2014-15.
However, the tariff proposed under this category is lower than average cost of
supply implying higher burden on the existing consumers in the state. In case the
Hon’ble Commission approves the proposal, it would result in increasing the
extent of cross subsidization amongst various tariff categories in the State. It is
submitted that the tariff for such new consumers/ categories should be
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 59
determined so as to recover actual category wise cost of supply. In appropriate
cases, the State Government may provide adequate subsidy for lowering such
tariffs.
On this issue Commission has already expressed its view in paragraph 3.3.6.
3.8 Indus Towers has stated the followings:
3.8.1 Classifying telecom towers under a separate sub-category within the existing
Commercial Category on taking a cue from the Section 62(3) of the Electricity Act
2003 and considering its socially favourable nature and the fact that 84% of the
power consumed by/ load of the telecom towers are fairly constant over a 24
hour period. Moreover, telecom towers do not contribute significantly to the peak
hour consumption of the discoms and are a part of the base load of the
distribution utility. Such a load profile doesn’t put pressure on the distribution
utility to buy additional power at peak hours at higher prices thereby leading to a
lower ‘cost to serve’ for such consumers.
The Commission has noted the point.
3.8.2 Since the current supply is not reliable and is deficient, the petitioner is forced to
use DG sets with battery back up on all BTS towers. It is thus within the rights of
the Commission to allow for open access in the category of LT consumers on a
case by case basis.
Commission has noted the point and finds that it would not be prudent at this
stage to allow open access for connected load below 1 MW.
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 4 SALES, ENERGY BALANCE &
VARIABLE COST
West Bengal Electricity Regulatory Commission 60
4.1 West Bengal State Electricity Distribution Co. Ltd. (WBSEDCL) has been
entrusted with the responsibility to supply electricity to different categories of
consumers scattered throughout the State. A small part of the energy
requirement for distribution and supply in its licensed area comes from the hydro
power stations and small diesel generating set under the ownership of
WBSEDCL while the balance energy requirement is sourced by way of purchase.
The energy generation at the own generating station and ex-bus energy available
from these stations after deduction of auxiliary consumption as per norms has
been considered in this order. The estimation of energy amount from own
generation of WBSEDCL as well as estimation of purchase of energy, purchase
price and the amount from different sources has been done keeping in view the
submissions of the different stakeholders.
4.2 WBSEDCL has projected the amount of power purchase from the sources from
whom they are drawing power as per existing agreement. WBSEDCL has also
projected purchase of power from the new units of WBPDCL, NTPC, DVC, other
generating companies and also through electricity traders to meet their demand
during the ensuing years under the fourth control period. WBSEDCL has
projected purchase of energy from different non-conventional and co-generation
sources during the ensuing years under the fourth control period to meet their
renewable power obligation (RPO) for the respective years.
4.2.1 The generation of energy from all Hydro Power Stations and Purulia Pumped
Storage Project (in short ‘PPSP’) projected by WBSEDCL for the ensuing years
2014-15, 2015-16 and 2016-17 are stated to be based on the actual trend upto
October, 2013 of 2013 – 2014. No generation from Rudranagar generating
station has been projected by WBSEDCL for the years 2014 – 2015, 2015 –
2016 and 2016 – 2017.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
61
4.2.2 After getting the generated energy, the sent out energy from the above power
stations are calculated on the basis of normative auxiliary consumption.
4.3 For determination of energy that is to be admitted from the own generating
stations of WBSEDCL for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017,
following basis has been considered.
4.3.1 For projection of generation at Purulia Pumped Storage Project (PPSP) for the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017, the average generation of last
four years i.e., 2009-10, 2010-11, 2011-12 and 2012-13 has been considered
and the gross generation has been admitted at 828 MU for all the three ensuing
years. After considering normative auxiliary consumption (including
transformation loss) @ 1.7%, the net generation from PPSP during the years
2014 – 2015, 2015 – 2016 and 2016 – 2017 has been admitted by the
Commission at a level of 814 MU for all the three ensuing years. Considering
cycle efficiency of 74%, the pumping energy requirement for all the three ensuing
years are admitted at a level of 1119 MU.
4.3.2 The installed capacity of Jaldhaka Hydel Project Stage - I (JHP-I) after R&M work
as well as capacity addition of a new unit of 9 MW is increased to 36 MW (4 x 9
MW) during the year 2011-12. The Commission, thus, has viewed the actual
generation during 2012-13 and the generation at JHP-I projected by WBSEDCL
only to arrive at the admissible generation for the years 2014 – 2015, 2015 –
2016 and 2016 – 2017. WBSEDCL has proposed the gross generation at JHP-I
at 165.20 MU for all the three years 2014 – 2015, 2015 – 2016 and 2016 – 2017.
The actual generation at JHP-I during year 2012 – 2013 was 117.76 MU. The
Commission admits the generation from JHP-I at a level of 165.20 MU for all the
three ensuing years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as proposed by
WBSEDCL.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
62
4.3.3 The units of Jaldhaka Stage – II are stated to have started generation from
September, 2013 after completion of R&M work. The Commission admits the
generation from Jaldhaka Stage II at a level of 42 MU each year during 2014 –
2015, 2015 – 2016 and 2016 – 2017 as projected by WBSEDCL as generation
for a full year after R&M work at JHP-II is not available.
4.3.4 WBSEDCL has projected gross generation from Rammam HEP during the year
2014 – 2015, 2015 – 2016 and 2016 – 2017 at a level of 236.50 MU. The
average gross generation at Rammam HEP during the period 2009 – 2010 to
2012 – 2013 was 214.35 MU. The Commission, thus admits the gross generation
at 236.50 MU as projected by WBSEDCL for all the three ensuing years of 2014
– 2015, 2015 – 2016 and 2016 – 2017.
4.3.5 For the other generating stations at Little Rangit, Sindrapong, Richigton, Fazi and
Mongpoo-Kalikhola the generation as projected by WBSEDCL for the years 2014
– 2015, 2015 – 2016 and 2016 – 2017 has been considered as the projection is
made by WBSEDCL as per trend of generation and maintenance programme of
the respective generating station. The summated generation from those
generating stations has been considered at a level of 20.20 MU each year for the
ensuing years under the fourth control period.
4.3.6 For the hydel stations viz., Massanzore Generating Station, Teesta Canal Fall-
Stage-I ( TCF-I), Teesta Canal Fall Stage-II(TCF-II) and Teesta Canal Fall Stage-
III (TCF-III), the generation as projected by WBSEDCL for 2014 – 2015, 2015 –
2016 and 2016 - 2017 has been considered for following reasons:
a) Newly commissioned Massanzore has started generation from 2011-12
and thus actual generation for 2012 – 2013 is only available.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
63
b) TCF – I, TFC- II and TFC-III are highly dependent on Irrigation Canal
Water availability and thus depend on number of co-ordination factor.
Thus the projection of WBSEDCL, being the coordinator, shall be
considered to be of better projection.
The projected generation from Massanzore Hydel Power at a level of 5.431 MU
for each year of period from 2014 – 2015 to 2016 – 2017 has been admitted by
the Commission. The summated projected generation from TCF-I, TCF-II and
TCF-III for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 at 93 MU, 102
MU and 105 MU respectively has been admitted by the Commission.
4.3.7 In view of the availability of grid power in the Sagar Island no sent out energy
from Rudranagar diesel generating station has been projected by WBSEDCL for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017. The Commission, thus,
considers nil generation from Rudranagar generating station for all the years
2014 – 2015, 2015 – 2016 and 2016 – 2017. Thus, no amount under the head
generation charge (fuel) is considered for all the three years under the fourth
control period.
4.3.8 The gross generation from the different hydel generating stations of WBSEDCL
and PPSP during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has
been admitted at 1390.331 MU, 1399.331 MU and 1402.331 MU respectively.
The details of the generation from different generating stations are given below:
Sl. No.
Name of Generating Station
Year 2014 – 2015 (MU) 2015 – 2016 (MU) 2016 – 2017 (MU)
1 PPSP 828.000 828.000 828.000 2 JHP – I 165.200 165.200 165.200 3 JHP – II 42.000 42.000 42.000 4 Rammam 236.500 236.500 236.500 5 Messanzore 5.431 5.431 5.431 6 TCF-I, TCF-II and TCF-III 93.000 102.000 105.000 7 Other generating stations 20.200 20.200 20.200 Total 1390.331 1399.331 1402.331
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
64
The auxiliary consumption for the generation from the different hydel generating
stations and PPSP has been considered at 19.623 MU, 19.713 MU and 19.743
MU respectively for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 as per
norms specified in the Tariff Regulations.
4.4 The energy to be purchased by WBSEDCL from different sources during the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has been considered on the
following basis:
4.4.1 Purchase of Power from WBPDCL:
4.4.1.1 Power station wise sent out generation from the existing generating stations of
WBPDCL except Bandel TPS has been projected by WBSEDCL as per the
availability achieved by the respective generating stations during the year 2012 –
2013 and auxiliary consumption at normative level. WBSEDCL have, however,
projected the sent out generation from Bandel TPS at a lower level considering
the teething problem after renovation and modernization (R&M) works of unit V
during the year 2015 – 2016 and operation of units I to IV on stand-by mode after
R&M of Unit V. The Commission has considered the projection of WBSEDCL.
The capacity charge and energy charge for all the existing generating stations of
WBPDCL stated to have been projected by WBSEDCL reducing the annual
capacity charge of the respective generating station intimated by WBPDCL for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 based on actual plant
availability of those generating stations in 2012 – 2013. The Commission
considers the capacity charge for purchase of power from the existing generating
stations of WBPDCL as per capacity charge approved in the tariff order of
WBPDCL in case no. TP-59/13-14 for the respective years based on the
normative sent out generation vis-à-vis purchase of energy considered from the
respective generating stations during the years 2014 – 2015, 2015 – 2016 and
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
65
2016 – 2017. The Commission, however, considers the energy charges at the
rate as admitted in the tariff order of WBPDCL for the respective generating
stations for the concerned years.
4.4.1.2 WBSEDCL has projected purchase of 2253 MU and 5632 MU during the years
2015-16 and 2016-17 from the proposed units III and IV of Sagardighi TPS of
WBPDCL scheduled to be commissioned in 2015 – 2016 as per PAF (Plant
Availability Factor) achieved by Unit I & II of Sagardighi TPS in the year 2010-11.
The capacity charge and energy charge for the units III & IV has been estimated
by WBSEDCL same as that of Unit I & II. The Commission observes that
WBPDCL has not proposed for determination of tariff for Sagardighi TPS Units III
& IV along with their MYT application for the fourth control period. WBPDCL has
not also submitted any proposal for determination of tariff for Units III and IV of
Sagardighi TPS separately as per provisions of Tariff Regulations till date. The
Commission considers the purchase of energy from Sagardighi Units III & IV as
proposed by WBSEDCL during the years 2015 – 2016 and 2016 – 2017 while
the rate for such purchase of power is considered as per the rate as admitted for
Units I & II.
4.4.2 Purchase of power from the licensees within the State viz., DPL, DPSC Limited
and CESC Limited:
4.4.2.1 For grid power as well as radial power received from DPL, radial power received
from DPSC Ltd. and CESC Limited the amount of electrical energy have been
taken as per projection of WBSEDCL for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 and the power purchase prices have been considered as are
being determined by the Commission.
4.4.3 Purchase of power from Damodar Valley Corporation (DVC):
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
66
4.4.3.1 It is submitted by WBSEDCL that the power purchase cost from different
generating stations of DVC have been projected for the year 2014 – 2015 as per
energy bill of October, 2013.
The energy charge rates for purchase of power from the generating stations of
DVC for the years 2015-16 and 2016-17 stated to have been escalated @
6.62% annually as per escalation rate notified for domestic coal in CERC
notification no. ECO/2/2013-CERC dated 07.10.2013 for bid evaluation in case –
I bidding. WBSEDCL has considered the capacity charges for 2014-15 for the
generating stations of DVC as per the bill for October, 2013 which the
Commission admits. The capacity charge for those generating stations has,
however, been projected with an annual escalation rate of 5%.
4.4.3.2 The Commission observes that as per latest notification no. Eco-2/2014-CERC
dated October 1, 2014 of CERC, the escalation rate for domestic coal is 1.24%
and the Commission considers such escalation rate of 1.24% for the years 2015
– 2016 and 2016 – 2017 for purchase of power from DVC where the domestic
coal is used. It is also observed from the said notification of CERC that the
inflation rate for indexed capacity charge is 1.6% and the Commission considers
the same.
4.4.3.3 WBSEDCL has projected 89.227 MU, 100.184 MU and 65.369 MU to be
purchased from DVC at 33 kV at radial mode during the years 2014 – 2015, 2015
– 2016 and 2016 – 2017 respectively to meet the demand of some areas at
Asansol, Burdwan and other areas of WBSEDCL. It is also stated by WBSEDCL
that they will extend the grid in phases. WBSEDCL has also projected 117.54
MU to be purchased from DVC at 132 kV at radial mode during the years 2014 –
2015, 2015 – 2016 and 2016 – 2017 to meet the local demand. The Commission
considers the projection of WBSEDCL for the years 2014 – 2015, 2015 – 2016
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
67
and 2016 – 2017 as those projected purchase of energy is required to meet the
local demand of WBSEDCL. WBSEDCL has projected the power purchase costs
for 2014 – 2015 as per energy bill for October, 2013 and considers an annual
escalation @ 6.62% in energy charge and 5% in capacity charge for the years
2015 – 2016 and 2016 – 2017. The Commission, however, considers annual
escalation @ 1.24% and 1.6% in energy charge and capacity charge respectively
for the years 2015 – 2016 and 2016 – 2017 as already explained in paragraph
4.4.3.2 above.
4.4.3.4 WBSEDCL is receiving 50.00 MW of power from unit V of Mejia Thermal Power
Station of DVC (in short ‘MTPS’) and 200 MW of power from the units VII and VIII
of MTPS through grid. WBSEDCL has projected purchase of power from unit V
of MTPS upto August 2016 and from units VII and VIII of MTPS upto July 2015
as per provisions of the respective power purchase agreement (PPA).
WBSEDCL has projected 339 MU, 339 MU and 141.25 MU as purchase from
MTPS unit V during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively and the Commission admits the same. WBSEDCL has also
projected 1337 MU and 446 MU as purchase from units VII and VIII of MTPS
during the years 2014 – 2015 and 2015 – 2016 respectively. The Commission
also admits the same. The Commission also considers the power purchase rate
as projected by WBSEDCL for the year 2014 – 2015. The Commission, however,
considers escalation on energy charge and capacity charge annually @ 1.24%
and 1.6% for the years 2015 – 2016 and 2016 – 2017 as explained in paragraph
4.4.3.2 above.
4.4.4 WBSEDCL has projected purchase of power from the units of Koderma TPS of
DVC projected to be commissioned in April, 2014. It is submitted that WBSEDCL
would receive 200 MW grid power supply from Koderma TPS of DVC as per the
power purchase agreement executed with them. WBSEDCL has projected
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
68
purchase of power from Koderma TPS at a level of 631 MU during the year 2014
– 2015 which has been admitted by the Commission. WBSEDCL has, however,
not projected any purchase of power from Koderma TPS for the years 2015 –
2016 and 2016 – 2017 and thus the Commission does not consider any
purchase from the said source during the years 2015 – 2016 and 2016 – 2017.
The Commission also considers the power purchase price as projected by
WBSEDCL for the year 2014 – 2015.
4.4.5 Purchase of power from NTPC Limited (NTPC):
4.4.5.1 WBSEDCL has projected the energy charge for purchase of power from NTPC’s
generating stations for the year 2014-15 as per the average energy rate of the
respective generating station upto October 2013 of 2013 – 2014 or the energy
charge rate for October, 2013 whichever is higher. WBSEDCL has considered an
annual escalation @ 7.51% for the year 2015 – 2016 and 2016 – 2017 for
FSTPS St. I & II and FSTPS St. – III considering blending ratio of approx. 14:86
for imported coal and domestic coal as per the blending during the period April
2013 to October, 2013 and escalation rate @ 6.62% and 12.97% for domestic
coal and imported coal as per CERC notification dated 07.10.2014 for bid
evaluation in Case I bidding. Accordingly, WBSEDCL for Talcher STPS (TSTPS)
has considered annual escalation in energy charge rate @ 7.56% considering
blending ratio of imported coal and domestic as 15:85 as per blending ratio
during April 2013 to October 2013 and the escalation rate for domestic coal and
imported coal as per CERC’s notification for bid evaluation for Case – I bidding.
WBSEDCL has considered the capacity charge of 2013 – 2014 of the respective
generation stations of NTPC as per the tariff order for 2009 - 2014 for the years
2014 – 2015 which the Commission admits. An annual escalation @ 5% for
capacity charge has been projected for the years 2015 – 2016 and 2016 – 2017.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
69
The Commission observes that as per the notification no. Eco-2/2014-CERC
dated October 1, 2014 of CERC, the escalation rate for domestic coal and
imported coal are 1.24% and (-)15.09% respectively and the inflation rate to be
applied to indexed capacity charge component is 1.60%. The Commission thus
does not consider any escalation in the energy charge for purchase of power
from NTPC Limited where the blending of domestic coal and imported coal stated
to have been 86:14 for FSTPS St. – I & II and FSTPS St. – III and 85:15 for
TSTPS.
The Commission, however, considers the escalation in capacity charge for
purchase of power from the generating stations of NTPC @ 1.6% instead of 5%,
as proposed by WBSEDCL, for the years 2015 – 2016 and 2016 – 2017.
4.4.5.2 The quantum of energy purchase from FSTPS Stage – I & II and FSTPS Stage –
III of NTPC have been projected by WBSEDCL for all the years 2014 – 2015,
2015 – 2016 and 2016 – 2017 at a level of 2856.00 MU and 874.00 MU
respectively as per the actual plant availability (74.22%) of the station during
2012-13 and allocation of power to WBSEDCL from the power station.
WBSEDCL has also projected 588.00 MU for all the three ensuing years of 2014
– 2015, 2015 – 2016 and 2016 – 2017 from the Talcher STPS of NTPC on the
basis of actual plant availability (81.93% in 2012-13) and considering the
allocated share of power to WBSEDCL from Talcher STPS
4.4.5.3 The Commission has observed from the annual report and accounts of
WBSEDCL for the year 2012 – 2013 that the summated purchase of power by
WBSEDCL from NTPC Limited was 3763.574 MU against power purchase cost
of Rs. 141299.00 lakh resulting in an average rate of 375.44 paise / kWh during
the year 2012 – 2013. It is also observed from the Monthly Variable Cost
Adjustment (MVCA) worksheets of WBSEDCL for the month of October, 2014
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
70
that the purchase of power during the period of April, 2014 to October, 2014 (7
months) from FSTPS Stage – I & II, FSTPS Stage – III and TSTPS of NTPC is
1437.89 MU, 482.47 MU and 338.80 MU respectively and the corresponding
average rate of power purchase works out at 420.17 paise / kWh, 515.50 paise /
kWh and 232.32 paise / kWh. The average rate of purchase of power from NTPC
during the period April, 2014 to October, 2014 as per MVCA worksheet for
October, 2014 comes at 412.36 paise / kWh. WBSEDCL has projected the
average rate of purchase of power from NTPC during the year 2014 – 2015 at
412.63 paise / kWh which, in the opinion of the Commission, is reasonable and
thus the Commission admits the projection of WBSEDCL for the year 2014 –
2015. The Commission also admits the quantum of purchase of power by
WBSEDCL during the year 2015 – 2016 and 2016 – 2017 as projected by
WBSEDCL. The Commission considers annual escalation @ 1.6% for the
capacity charge of the respective generating station for the year 2015 – 2016 and
2016 – 2017 as already stated in paragraph 4.4.5.1 above. The Commission,
however, does not consider any hike in energy charge rate for the years 2015 –
2016 and 2016 – 2017 as mentioned in paragraph 4.4.5.1 above.
4.4.6 Purchase of Power from NTPC Vidyut Vyapar Nigam Limited:
4.4.6.1 WBSEDCL is purchasing 35 MW of bundled power from NTPC Vidyut Vyapar
Nigam Limited (NVVNL). WBSEDCL has projected purchase of power from
NVVNL at a level of 306.60 MU, 328.50 MU and 438.00 MU during the years
2014 – 2015, 2015 – 2016 and 2016 – 2017 considering purchase of bundled
power to the tune of 70 MW, 75 MW and 100 MW respectively, which is admitted
by the Commission. WBSEDCL has projected the power purchase costs for 2014
– 2015 as per energy bill for October, 2013 and considers an annual escalation
@ 6.62% in energy charge for the years 2015 – 2016 and 2016 – 2017 as per
escalation rate notified for domestic coal in CERC’s notification no. Eco 2/2013-
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
71
CERC dated 07.10.2013 for bid evaluation in case I bidding. The Commission
considers the energy charge as proposed by WBSEDCL for 2014 – 2015. The
Commission, however, considers no escalation in energy charge for the years
2015 – 2016 and 2016 – 2017 as already explained in paragraph 4.4.5.1 above.
4.4.7 Purchase of power from Hydel Power Station in Bhutan through PTC India
Limited:
4.4.7.1 The total energy to be received from three power stations of Bhutan namely
Chukha, Kiruchu and Tala Hydro Electric Project (HEP) through PTC India
Limited (in short ‘PTC’) have been considered as per projection of WBSEDCL.
For Tala HEP the purchase of energy is projected by WBSEDCL at 1185.00 MU
for all the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 and the same is
admitted. For Chukha HEP and Kiruchu HEP the projected purchase of energy
are 480.00 MU and 60.00 MU respectively for all the three years 2014 – 2015,
2015 – 2016 and 2016 – 2017 and the same is admitted by the Commission. The
power purchase costs from those three different power stations are projected by
WBSEDCL as per the existing tariff order of CERC and the same are admitted by
the Commission.
4.4.8 Purchase of Energy from NHPC Limited:
4.4.8.1 WBSEDCL has projected the purchase of energy at a level of 95 MU from
Rangeet HEP for all the three years 2014 – 2015, 2015 – 2016 and 2016 – 2017
on the basis of existing trend and allocated share to WBSEDCL from the
respective generating stations. The existing price of purchase of power from
Rangeet HEP has been projected for all the years of 2014 – 2015, 2015 – 2016
and 2016 – 2017. The Commission has observed that average of actual drawal
by WBSEDCL from Rangeet HEP of NHPC during the period 2009 – 2010 to
2012 – 2013 was 93.69 MU. Thus, the Commission admits the purchase of
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
72
energy from Rangeet HEP at a level of 95 MU for all the three years 2014 –
2015, 2015 – 2016 and 2016 – 2017 as projected by WBSEDCL. The
Commission considers the fixed charge as Rs. 2438.80 lakh for all three years as
projected by WBSEDCL as per existing price.
4.4.8.2 The Commission has observed that purchase of energy by WBSEDCL from
Teesta V of NHPC during the year 2012 – 2013 was 535.728 MU. It is also seen
from the worksheet of computation of MVCA for the month of October, 2014 that
the purchase of energy from Teesta V HEP during the period April 2014 to
October, 2014 (7 months) is 486 MU. The Commission thus admits 535 MU as
purchase from Teesta V HEP for all the three years 2014 – 2015, 2015 – 2016
and 2016 – 2017 as projected by WBSEDCL. The Commission also admits the
fixed costs of Rs. 12094.74 lakh to be paid by WBSEDCL for such purchase of
energy from Teesta V HEP for all the three years of 2014 – 2015, 2015 – 2016
and 2016 – 2017 as projected by WBSEDCL as per existing price.
4.4.8.3 WBSEDCL has 100% share for the generation from 132 MW Teesta Low dam
(TLDP) – III and 160 MW TLDP – IV of NHPC as per the executed PPA. The first
unit of TLDP – III has been commissioned in April, 2013 and the rests are within
May, 2013. WBSEDCL has projected 458 MU each year for 2014 – 2015, 2015 –
2016 and 2016 – 2017 as purchase of energy from TLDP – III considering 95%
of the designed energy of the station. The Commission admits the same.
WBSEDCL has projected the purchase cost as per tariff application of NHPC at
an average rate of 613.76 p/kWh. The Commission observes from the worksheet
of MVCA computation of WBSEDCL for the month of October, 2014 that the
average rate of purchase of power from TLDP III is 664.03 paise / kWh. Thus,
the Commission considers the power purchase cost as projected by WBSEDCL
for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017. WBSEDCL has stated
that as per letter dated 11.07.2013 of NHPC (copy enclosed in Appendix A of
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
73
their Tariff petition) expected date of commissioning of all the four units of TLDP
– IV is April, 2015. Accordingly, WBSEDCL has projected the purchase of energy
from TLDP IV at a level of 555 MU for the years 2015 – 2016 and 2016 – 2017
and the Commission admits the same. The Commission also considers the price
of purchase of power from TLDP IV for the years 2015 – 2016 and 2016 – 2017
as projected by WBSEDCL.
4.4.9 Purchase of power from Baglihar HEP:
4.4.9.1 For the power purchase from Baglihar HEP through PTC the price and quantum
are accepted by the Commission for all the three years of 2014 – 2015, 2015 –
2016 and 2016 – 2017 as projected by WBSEDCL.
4.4.10 Purchase of Power from Maithon Right Bank Thermal Power Project:
4.4.10.1 WBSEDCL is receiving 300.00 MW of power from Maithon Right Bank Thermal
Power Project (MRBTPP) through grid. WBSEDCL has projected purchase of
power from MRBTPP as per provisions of the power purchase agreement (PPA)
at a level of 1722 MU during all the years 2014 – 2015, 2015 – 2016 and 2016 –
2017 and the Commission admits the same. In order to compute the capacity
charge for the power to be drawn by WBSEDCL from MRBTPP, WBSEDCL has
considered the existing capacity charge rate of 2013 – 2014 for the year 2014 –
2015 and projected an annual escalation rate of 5% on the capacity charge of
2014 – 2015 for the years 2015 – 2016 and 2016 – 2017. The Commission,
however, considers annual escalation @ 1.24% and 1.6% in energy charge and
capacity charge respectively for the years 2015 – 2016 and 2016 – 2017 as
already explained in paragraph 4.4.5.1 above where the domestic coal is used.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
74
4.4.11 Purchase of power from new projects:
4.4.11.1 WBSEDCL has stated that 28.5 MW power to be purchased by them from
Bhasmay Hydro Power Station (2x27 MW) of Gati Infrastructure Bhasmay Power
Private Limited (GIBPPL) and projected 100 MU as purchase during the year
2016 – 2017. The expected date of commissioning of the Bhasmay hydro power
station is April, 2016 as stated by WBSEDCL. The Commission admits the
energy and cost of power purchase from Bhasmay hydro power station as
projected by WBSEDCL for the year 2016 – 2017.
4.4.11.2 WBSEDCL will purchase 100 MW power from Adhunik Power and Natural
Resources Limited (in short ‘APNRL’) through PTC during the year 2014 – 2015,
2015 – 2016 and 2016 – 2017. WBSEDCL has projected 710 MU to be
purchased by them each year of 2014 – 2015, 2015 – 2016 and 2016 – 2017.
The quantum of power and cost thereof as projected by WBSEDCL as per the
agreement for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 is admitted
by the Commission.
4.4.11.3 WBSEDCL shall purchase 350 MW contracted power from Monet Power
Company Limited through PTC. WBSEDCL has projected the purchase of
energy as 2606 MU each year during the years 2015 – 2016 and 2016 – 2017
which the Commission admits. The power purchase cost is projected considering
the rate of power purchase as per the agreement and the same is also admitted
by the Commission.
4.4.12 WBSEDCL has projected purchase of short term power of 1016.95 MU for the
year 2014-15 only to meet the gap between supply of power and system demand
generally observed in the months of March and April and sometimes in other
period of the year. WBSEDCL has stated that the short term power will be
purchased either through purchase or short term arrangement or through import
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
75
of power under swap arrangement. WBSEDCL has also submitted that incase of
requirement of short term power during 2015-16 and 2016-17 that shall be
intimated through APR application for incorporation in the tariff order of the
respective years. The purchase price for short term power for the period 2014-15
has been considered as 323.96 paise / kWh projected by WBSEDCL as obtained
against tender for procurement of short term power in April 2014 and May 2014.
4.4.13 The quantum of power purchase from Renewable and Co-generation sources as
proposed in the MYT application for the years 2014-15, 2015-16 and 2016-17 are
being admitted by the Commission. The rates of purchase for such power are as
per the agreement executed with the respective agencies. The admitted
purchase of energy from these power stations and the cost therefor are as
follows:
Sl. No. Agency
2014 - 2015 2015 - 2016 2016 - 2017 Qty
(MU) Amount (in lakh)
Qty (MU)
Amount (in lakh)
Qty (MU)
Amount (in lakh)
1 WBREDA 1.20 48.00 1.20 48.00 1.20 48.00 2 Nippon Power Limited 11.00 396.00 11.00 396.00 11.00 396.00 3 Neora Hydro Limited 6.70 241.31 6.70 241.31 6.70 241.31 4 Shree Renuka Sugars Limited 50.00 1380.00 50.00 1380.00 50.00 1380.00
5 Himadri Chemicals & Industries Limited 28.00 767.20 28.00 767.20 28.00 767.20
6 Reshmi Cements Limited 3.00 85.20 3.00 85.20 3.00 85.20 7 Electro Steel Casting Limited 42.00 1062.60 42.00 1062.60 42.00 1062.60 8 Tata Power Co. Ltd., Haldia 160.00 2976.00 160.00 2976.00 160.00 2976.00 9 Ennore Coke 13.00 273.00 13.00 273.00 13.00 273.00
10 Bengal Energy Limited 208.00 5907.20 208.00 5907.20 208.00 5907.20 11 Concast Bengal Ind. Limited 44.00 1403.60 44.00 1438.80 44.00 1469.60
Total 566.90 14540.11 566.90 14575.31 566.90 14606.11
This admitted energy for purchase of power from Renewable and Co-generation
sources should not be construed as giving clearance of meeting the obligation on
purchase from renewable and co-generation sources of energy.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
76
4.4.14 The purchase price of electricity by WBSEDCL from CESC Limited are
considered as 590 paise / kWh, 610 paise / kWh and 625 paise / kWh as
proposed by WBSEDCL for 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively during the fourth control period. The purchase price of power from
DPSCL is considered as 540 paise / kWh for all the three years under the fourth
control period. The purchase price from DPL is considered as 380 paise / kWh
for purchase at 132 / 220 KV and 395 paise / kWh for 33 / 11 KV for all the three
years under the fourth control period.
4.4.15 Notwithstanding whatever else is contained elsewhere in contrary to this order
the above referred price and quantum on energy as considered is for the purpose
of projection in this tariff order only subject to the following conditions.
i) Such price and quantum will be changed/ modified by the Commission
during the stage of FPPCA on submission of audited data.
ii) On receipt of any further development these prices/ cost of power
purchase by WBSEDCL may be further adjusted in the quantum, price
and their cost implication on power purchase cost in the tariff order for the
year 2015-16 and 2016 – 2017 as per Tariff Regulations.
iii) In addition to the above mentioned price the purchase cost may vary in
on applicability of MVCA or MFCA or FCA or FPPCA or any other
regulatory order/ approval in accordance with the Act and rules /
regulations framed thereunder and any other statue or international
bilateral agreement.
iv) Though the energy quantum from Bandel, Santaldih and Sagardighi
(State I) generating stations of WBPDCL is considered under this order at
a reduced level than normative level but it does not limit WBPDCL from
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
77
generating at its normative level or at higher level than norms at those
generating stations.
4.4.16 The purchase price/cost of electricity by WBSEDCL from different licensees shall
be as per Annexure-4A for the years 2014-15, 2015-16 and 2016-17. However,
such purchase prices are subject to variation due to changes in their prices as
already explained in paragraph 4.4.15 above.
4.4.17 Out of the above purchase almost all the energy is being available at the
generation bus-bar except a part of the DVC and power drawn from other
licensee at HV level in radial mode. The radial mode feeding from any licensee is
considered at the point of injection in the distribution system. The feeding by
DVC in the grid (132 KV) is in the STU system. The injected energy of DVC Mejia
is considered at the generating bus-bar.
4.5 The Commission now draws the energy balance for the years 2014 – 2015, 2015
– 2016 and 2016 – 2017 considering the admitted net generation from different
generating stations of WBSEDCL and the purchase of power from different
agencies as detailed in the foregoing paragraphs and the sale of energy to own
consumers and other licensees as projected by WBSEDCL for the respective
years. Accordingly, the energy balance is shown in the table in Annexure – 4B.
4.6 For above energy balance distribution loss in the distribution system and the
transmission loss in transmission systems of WBSETCL have been considered
as per the norms as specified in the Tariff Regulations for 2014-15, 2015-16 and
2016 – 2017 respectively.
4.7 For merit order dispatch, SLDC / ALDC of WBSEDCL shall consider the energy
charge of the generating stations as determined in the prevailing relevant tariff
orders for the generating companies / licensees.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
78
Monthly Fuel Cost Adjustment (MFCA) or Monthly Variable Cost Adjustment
(MVCA) as may be applicable shall be added to the above energy charge for
merit order dispatch as notified by WBPDCL or DPL or DPSCL or CESC for their
respective generating stations or sales as licensee for the concerned month.
4.8 For power stations of NTPC and DVC, WBSEDCL shall provide on monthly basis
to SLDC / ALDC of WBSEDCL the average value of fuel related cost on the basis
of last three months which are available to WBSEDCL in order to consider such
cost for merit order dispatch. Such information shall be given to SLDC on each
month for each power station within three working days of receiving the power
purchase bill for that power station on the basis of the amount mentioned in the
bill. For this purpose for NTPC the summated amount of base energy charge and
fuel price adjustment (FPA) shall be considered as effective energy charge.
Similarly for DVC the summation of energy charge and fuel cost surcharge (FCS)
shall be considered as effective energy charge. Such effective energy charge
shall then be considered by SLDC / ALDC of WBSEDCL for merit order dispatch
purpose only. In case of single part tariff where fixed charge recovery through
target availability is not done, the tariff itself will be considered as energy charge
for merit order dispatch.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 4A
West Bengal Electricity Regulatory Commission 79
Sheet 1/3 DETAIL OF POWER PURCHASE COST ADMITTED BY COMMISSION
Sl. No Agency
2014-15 2015-16 2016-17
Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit)
1 WBPDCL a KTPP 7230.00 42315.17 245.47 219789.98 304.00 7230.00 51723.55 245.47 229198.36 317.01 7230.00 54674.02 245.47 232148.83 321.09 b BkTPS 7634.00 75484.33 216.33 240630.65 315.21 7634.00 83556.94 216.33 248703.26 325.78 7634.00 85349.07 216.33 250495.39 328.13 c SgTPS - Stg I 3709.00 43495.03 217.23 124065.64 334.50 3709.00 41662.67 217.23 122233.28 329.56 3709.00 42438.66 217.23 123009.27 331.65 d SgTPS - Stg II 0.00 0 0.00 2253.00 25307.629 217.23 74249.55 329.56 5632.00 64441.77 217.23 186785.71 331.65 e BTPS 2099.00 9846.68 270.27 66576.35 317.18 1361.00 8208.24 270.27 44991.99 330.58 1361.00 8786.15 270.27 45569.90 334.83 f STPS 2344.00 33399.12 217.05 84275.64 359.54 2344.00 33478.4 217.05 84354.92 359.88 2344.00 32944.51 217.05 83821.03 357.60
Total WBPDCL 23016.00 204540.33 735338.262 319.49 24531.00 243937.43 803731.35 327.64 27910.00 288634.18 921830.1242 330.29
2 DPL
a DPL at 132/220
KV 90.00 0.00 380.00 3420.00 380.00 90.00 0.00 380.00 3420.00 380.00 90.00 0.00 380.00 3420.00 380.00
b DPL at 33 and 11
KV (Radial) 84.00 0.00 395.00 3318.00 395.00 84.00 0.00 395.00 3318.00 395.00 84.00 0.00 395.00 3318.00 395.00
Total DPL 174.00 0.00 6738.00 387.24 174.00 0.00 6738.00 387.24 174.00 0.00 6738.00 387.24 3 DPSCL 95.90 0.00 540.00 5178.49 540.00 84.94 0.00 540.00 4586.76 540.00 72.97 0.00 540.00 3940.16 540.00 4 DVC
a DVC - 132 KV( Radial mode) 89.23 1645.26 254.28 3914.12 438.67 100.18 1876.85 257.43 4455.89 444.77 65.37 1244.22 260.62 2947.87 450.96
b DVC -33 KV &11 KV( Radial mode) 117.54 2167.32 254.58 5159.65 438.97 117.54 2202.00 257.74 5231.48 445.08 117.54 2237.23 260.94 5304.32 451.28
c DVC - Mejia V 339.00 4939.08 256.56 13636.46 402.26 339.00 5018.11 259.74 13823.30 407.77 141.25 2124.33 262.96 5838.64 413.36
d DVC - Mejia VII &
VIII 1337.00 27358.68 215.60 56184.40 420.23 446.00 9272.40 218.27 19007.24 426.17 0.00 0.00 0.00
e DVC - Kodarma 631.00 13869.38 181.80 25340.96 401.60 0.00 0.00 0.00 0.00 0.00 Total DVC 2513.77 49979.72 104235.61 414.66 1002.72 18369.36 42517.90 424.02 324.16 5605.78 14090.83 434.69
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 80
ANNEXURE – 4A
Sheet – 2/3
Sl. No Agency
2014-15 2015-16 2016-17
Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit)
5 CESC Ltd 48.00 0.00 590.00 2832.00 590.00 48.00 0.00 610.00 2928.00 610.00 48.00 0.00 625.00 3000.00 625.00 6 Govt. of Sikkim 0.10 0.00 437.00 4.37 437.00 0.10 0.00 437.00 4.37 437.00 0.10 0.00 437.00 4.37 437.00
7 PTC (India)
Limited
a CHP 480.00 0.00 184.00 8832.00 184.00 480.00 0.00 184.00 8832.00 184.00 480.00 0.00 184.00 8832.00 184.00 b Kurichhu 60.00 0.00 203.00 1218.00 203.00 60.00 0.00 203.00 1218.00 203.00 60.00 0.00 207.98 1247.88 207.98 c Tala 1185.00 0.00 202.00 23937.00 202.00 1185.00 0.00 202.00 23937.00 202.00 1185.00 0.00 207.70 24612.45 207.70 d Baglihar 607.00 0.00 372.30 22598.61 372.30 607.00 0.00 372.30 22598.61 372.30 607.00 0.00 372.30 22598.61 372.30
Total PTC 2332.00 0.00 56585.61 242.65 2332.00 0.00 56585.61 242.65 2332.00 0.00 57290.94 245.67 8 NTPC Ltd a FSTPS- St I & II 2856.00 28755.90 315.50 118862.70 416.19 2856.00 29215.99 315.50 119322.79 417.80 2856.00 29683.45 315.50 119790.25 419.43 b FSTPS- St III 874.00 17687.10 313.20 45060.78 515.57 874.00 17970.09 313.20 45343.77 518.81 874.00 18257.61 313.20 45631.29 522.10 c TSTPS 588.00 5310.80 152.00 14248.40 242.32 588.00 5395.78 152.00 14333.38 243.76 588.00 5482.11 152.00 14419.71 245.23
Total NTPC 4318.00 51753.80 178171.88 412.63 4318.00 52581.86 178999.94 414.54 4318.00 53423.17 179841.25 416.49 9 MAITHON RB 1722.00 28441.00 208.00 64258.60 373.16 1722.00 28896.05 210.58 65157.93 378.39 1722.00 29358.39 213.19 66069.71 383.68 10 NHPC
a NHPC - Rnageet
(REA) 95.00 2438.80 0.00 2438.80 256.72 95.00 2438.80 0.00 2438.80 256.72 95.00 2438.80 0.00 2438.80 256.72
b NHPC - Teesta V
(REA) 535.00 12094.70 0.00 12094.70 226.07 535.00 12094.70 0.00 12094.70 226.07 535.00 12094.70 0.00 12094.70 226.07
c Teesta Low Dam
III 458.00 0.00 613.76 28110.21 613.76 458.00 0.00 613.76 28110.21 613.76 458.00 0.00 613.76 28110.21 613.76
d Teesta Low Dam
IV 0.00 0.00 0.00 555.00 0.00 461.70 25624.35 461.70 555.00 0.00 461.70 25624.35 461.70
NHPC TOTAL 1088.00 14533.50 42643.71 391.95 1643.00 14533.50 68268.06 415.51 1643.00 14533.50 68268.06 415.51
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 81
ANNEXURE – 4A Sheet – 3/3
Sl. No Agency
2014-15 2015-16 2016-17
Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate Energy Capacity Charge
Energy Charge Amount Avg.
Rate (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit) (MU) (Rs. Lakh) (P/Unit) (Rs. Lakh) (P/Unit)
11 NVVNL-Bundled Power 306.60 0.00 545.60 16728.10 545.60 328.50 0.00 545.60 17922.96 545.60 438.00 0.00 545.60 23897.28 545.60
12 Adhunik Power (thru PTC india Ltd.) 710.00 15137.20 95.10 21889.30 308.30 710.00 15137.20 98.09 22101.59 311.29 710.00 15137.20 101.27 22327.37 314.47
13 Monet Power 0.00 0.00 0.00 2606.00 55559.92 104.09 82685.77 317.29 2606.00 54804.18 107.27 82758.74 317.57 14 Bhasmay 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 529.60 5296.00 529.60
15 Non Conventional and renewable Sources
WBREDA 1.20 0.00 400.00 48.00 400.00 1.20 0.00 400.00 48.00 400.00 1.20 0.00 400.00 48.00 400.00 Nippon Power Limited 11.00 0.00 360.00 396.00 360.00 11.00 0.00 360.00 396.00 360.00 11.00 0.00 360.00 396.00 360.00 Neora Hydro Limited 6.70 0.00 360.00 241.31 360.00 6.70 0.00 360.00 241.31 360.00 6.70 0.00 360.00 241.31 360.00
Shree Renuka Sugars Ltd. 50.00 0.00 276.00 1380.00 276.00 50.00 0.00 276.00 1380.00 276.00 50.00 0.00 276.00 1380.00 276.00
Himadri Chemicals & Industries Ltd 28.00 0.00 274.00 767.20 274.00 28.00 0.00 274.00 767.20 274.00 28.00 0.00 274.00 767.20 274.00
Reshmi Cements Ltd 3.00 0.00 284.00 85.20 284.00 3.00 0.00 284.00 85.20 284.00 3.00 0.00 284.00 85.20 284.00
Electro Steel Casting Limited 42.00 0.00 253.00 1062.60 253.00 42.00 0.00 253.00 1062.60 253.00 42.00 0.00 253.00 1062.60 253.00
Tata Power Co. Ltd. Haldia 160.00 0.00 186.00 2976.00 186.00 160.00 0.00 186.00 2976.00 186.00 160.00 0.00 186.00 2976.00 186.00
Ennore Coke 13.00 0.00 210.00 273.00 210.00 13.00 0.00 210.00 273.00 210.00 13.00 0.00 210.00 273.00 210.00 Bengal Energy Limited 208.00 0.00 284.00 5907.20 284.00 208.00 0.00 284.00 5907.20 284.00 208.00 0.00 284.00 5907.20 284.00
Concast Bengal Ind. Ltd. 44.00 0.00 319.00 1403.60 319.00 44.00 0.00 327.00 1438.80 327.00 44.00 0.00 334.00 1469.60 334.00
Total Non Conventional & Renewable
566.90 0.00 14540.11 256.48 566.90 0.00 14575.31 257.10 566.90 0.00 14606.11 257.65
16 Short Term Power 1016.95 0.00 323.96 32944.47 323.96 0.00 0.00 0.00 0.00 0.00 0.00 17 Total 37908.21 364385.55 242.08 1282088.50 338.21 40067.17 429015.31 234.05 1366803.54 341.13 42965.13 461496.40 234.72 1469958.94 342.13
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 4B
ENERGY BALANCE
82
Sheet – 1/2
A Energy Input Unit Derivatives 2014-15 2015-16 2016-17 1 Generation MU A 1390.331 1399.331 1402.331 2 Auxiliary Consumption MU B1 19.623 19.713 19.743 3 Units delivered to system from generation [Form 1.5] MU C=A-B1 1370.708 1379.618 1382.588
3(a) Units delivered to system from generation at EHV MU C1=C-D-C 1345.333 2 1354.243 1357.213 3(b) Units delivered to system from generation at HV MU D 25.375 25.375 25.375
4 Quantum of Infirm power included in 3 MU C 0 2 0 0 5 Energy Purchased at EHV MU E 37472.248 39631.203 42575.953 6 Power Drawn under UI Mode MU F 0 0 0 7 Energy Received for Wheeling at 132 KV MU G 0.000 0.000 0.000 8 Less: CTU Loss MU H 309.725 356.230 344.071
9 Overall Gross Energy Input to WBSETCL System MU I=C1+E+F+G-H 38507.856 40629.216 43589.095
10 WBSETCL Loss % J 3.4% 3.4% 3.4% 11 WBSETCL Loss in MU MU K=I*J/100 1309.267 1381.393 1482.029 12 Net Energy available from WBSETCL System MU L=I-K 37198.589 39247.823 42107.066
13 Energy sold to person other than consumer and licensee at EHV MU M 3867.165 4094.166 3542.166
14 Energy sold to licensee at EHV and Sale to Sikkim MU N 2057.00 877.00 932.00
15 Additional units allowed by Commission for sale to other licensees MU O 72.4 30.867 32.803
16 (a) Units sold/ used for pumping energy of Pumped Storage Project MU P 1119.000 1119.000 1119.000
16(b) Trans. Loss for pumping energy MU Q 39.385 39.385 39.385 17 SWAP OUT MU 0 0 0 18 UI OUT MU R 0 0 0
19 Total Energy goes out from WBSETCL System at EHV MU S=M+N+O+P+Q+R 7154.950 6160.418 5665.354
20 Net Energy available from WBSETCL System to WBSEDCL MU T=L-S 30043.639 33087.405 36441.712
21 Own sent Out at 33 KV and below MU U=C2 25.375 25.375 25.375 22 Energy purchased by WBSEDCL at 33 KV & below MU V 435.965 435.964 389.175 23 Energy Received for Wheeling at 33 KV [Form 1.9a] MU W 17.000 17.000 17.000 24 Total Energy available to WBSEDCL system MU X=T+U+V+W 30521.979 33565.744 36873.262
Tariff Order of WBSEDCL for the year 2014 – 2015
83
ANNEXURE – 4B Sheet – 2/2
B Energy Utilization [Form 1.7] Unit Derivatives 2014-15 2015-16 2016-17 a. Units sold to consumers MU Y 24785.100 27232.1 29921.1 b. Energy sold to licensee below EHV level [Form 1.9b] MU Z 333.900 394.22 431.3 c. Units wheeled [Form 1.9c] MU AA 15.640 15.64 15.64 Additional units allowed for wheeling MU AB 1.360 1.36 1.36
d. Units utilized in own premises including construction power MU AC 46.000 48 50 e. Unutilized Units MU AD 5339.979 5874.424 6453.862 Total Energy MU sum(Y:AD) 30521.979 33565.744 36873.262
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 5
FIXED CHARGES
West Bengal Electricity Regulatory Commission 84
5.1 The analysis of the fixed charges projected by WBSEDCL for the ensuing years
of fourth control period under the Multi Year Tariff (MYT) application under
different heads of accounts has been taken up in this chapter.
5.2 WBSEDCL has projected the gross fixed charges, income from different non-
tariff sources and different income from other heads for the ensuing years 2014-
15, 2015-16 and 2016-17.
5.3 While determining fixed charges on different heads for WBSEDCL for the fourth
control period (2014-15, 2015-16 & 2016-17) the following considerations have
taken place:
5.3.1 WBSEDCL has projected inflation rate of 10.09% on the basis of actual inflation
rate for the month of October 2013. Commission finds no merit in considering the
inflation rate of one month only for projection purpose when such projection will
be applicable for thirty six months. In addition some of the objectors has also
objected such high rate of inflation citing examples of WPI based lower rate of
inflation as applied by different State Electricity Regulatory Commissions.
Commission instead of considering the inflation rate of 10.09% in general for
projection purpose decides to proceed in a further rational manner by following a
methodology that has been applied for all distribution licensees subject to case
specific differences in some cases to protect the interest of consumers as far as
possible after meeting the requirement of reasonable tariff determination to
provide end of justice to all concerned stakeholders as deemed fit by the
Commission. Moreover by the time of processing the tariff application by
Commission the inflationary trend shows downward direction. Due to the above
fact and views of different stakeholders on this inflationary rate, Commission
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 85
decides to determine projected inflation rate and the resultant escalation rate in
view of such inflation rate as detailed out in subsequent paragraphs.
Commission observed that Central Electricity Regulatory Commission based on
a hybrid index of WPI (Wholesale Price Index) & CPI (Consumer Price Index)
has observed an annual inflation trend of 8.35 % while fixing the norms of O&M
expenses in Central Electricity Regulatory Commission (Terms and Conditions of
Tariff) Regulations, 2014 (hereinafter refer to as ‘CERC Tariff Regulations’) for
central sector utilities for the period 2014-2019. This inflation trend of 8.35 % is
computed based on five year average of WPI and CPI indices for FY 2008-09 to
FY 2012-13 considering 60% and 40% weightage on WPI and CPI respectively.
However, while fixing norms of O&M cost (which includes employee cost also)
the annual escalation rate on O&M expenses during the period 2014-2019 has
been considered as 3.32% for A.C. transmission system as per the statement of
reasons of the CERC Tariff Regulations for the said period. This 3.32% is the
110% of the actual Compounded Annual Growth Rate (CAGR) (3.02%) of O&M
expenses for A.C. transmission system during the period 2008-09 to 2012-13
computed on the basis of 70% weightage on actual O&M cost of per bay of sub-
station and 30% weightage on actual O&M cost of per CKM transmission line.
Taking the above mentioned principle adopted by CERC as a guideline
Commission also decides to find out a reasonable annual escalation rate for
WBSEDCL for all sub-heads of O&M expenses for distribution function, rates &
Taxes, insurances, expenses for complaint management mechanism and
different types of Outsourcing Costs for distribution function with certain deviation
based on certain reasons as explained below:
a) The control period is of three years and as more than 6 months of 2014 has
already passed thus the inflation trend between October 2011 and
September 2014 has been computed where weightage has been given to
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 86
WPI & CPI at the ratio of 60:40 in line with the norms fixation methodology
under CERC Tariff Regulations. This is being done in order to capture the
realistic trend of 2014-15 as far as possible so that projection for fourth
control period can have better accuracy. Accordingly based on the WPI
numbers and CPI numbers as available in the website of Economic Advisor
of GOI for WPI and Labour Bureau of GOI for CPI the computed inflation
trend for the above 36 months are given in the following table 5.3.1-I:
Table- 5.3.1-I TREND OF INFLATION RATE FOR THE PERIOD OCTOBER 2011 TO
SEPTEMBER 2014 Average inflation rate as per WPI from October 2011 to September 2014= 6.62 Average inflation rate as per CPI from October 2011 to September 2014= 9.15
Average inflation rate as per WPI + CPI (60:40) from October 2011 to September 2014= 7.63
Note : For detail data Annexure – 5A may be seen
b) Different sub heads under O&M expenses, Expenses for outsourcing (limited
to manpower and vehicle hiring cost), Expenses for outsourcing ( except
manpower and vehicle hiring cost), and expense head for complaint
management mechanism, insurance and rates & taxes are effected by
inflationary trend but at different degrees depending on the characteristics of
such head or sub-head. In this context two recognized inflationary trends
used in the country are WPI index and CPI index. Along with these two types
of inflationary rate for power sector another third type inflationary rate used by
the Commission is based on hybrid index (WPI+CPI) as explained in
paragraph (a) above. In table-2 in Annexure-5B the basis of inflationary rate
considered for such heads and sub-heads of expenditure are given. In this
context Commission has decided to consider number of elements of fixed
charges to be sensitive to CPI index based inflationary rate instead of hybrid
(WPI+CPI) index in line with CERC norms fixation as explained above on the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 87
ground that those heads/ subheads of any distribution licensee are heavily
burdened with employee wages/ allowances and benefits. However for lease
rental line such sensitivity is considered with WPI index. In this context it is to
be noted that all these heads of expenditure are treated as heads under O&M
function of CERC Tariff Regulations. Accordingly the above inflation rate as
given in the table above are used for applicability in giving escalation rate in
2014-15, 2015-16 & 2016-17 with respect to the previous years’ admitted
expenditure to find out the admitted expenditure of the referred heads in
those years. Thus the inflation rate considered for tariff computation are as
per the following table 5.3.1- II:
Table 5.3.1-II
INFLATION TRENDS
Financial Years CPI WPI
Combined WPI & CPI (60 : 40)
Remarks
2010-11 10.53 9.57 9.96 Actual 2011-12 8.42 8.96 8.74 Actual 2012-13 10.43 7.36 8.59 Actual 2013-14 9.72 5.98 7.47 Actual
2014-15 6.81 4.78 5.59 As per 6 months
trend 2015-16 9.15 6.62 7.63 As per Table 5.3.1-I
& as explained above 2016-17 9.15 6.62 7.63
2011-12 to 2013-14 9.52 7.43 8.27 Averaged on annual basis 2010-11 to 2013-14 9.78 7.97 8.69
Note : For detail data Annexure – 5A may be seen
In 2014-15 as the trend is downward than the value under Table 5.3.1-II and
as the time already passed in 2014-15 has covered fifty percent of the year
thus such value has been considered with due insulation against uncertainty
wherever required through providing necessary certain additional float.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 88
c) It has been observed that the actual data submitted by WBSEDCL is of
erratic nature on meter reading and bill distribution which are now under a
transition mechanism from manual billing to spot billing where meter reading
and bill distribution are done at the same instance resulting into lesser
transaction cost. Thus to capture the flavor of this transition period properly
and to have a better projection or estimation from 2013-14 to 2016-17, the
head of meter reading and bill distribution has been considered compositely.
Moreover under the outsourcing cost the data behavior of past records in
relation to line maintenance and substation maintenance are also to be found
more rational while they are considered in a composite manner. Thus for
projection or estimation of expenditure related to line maintenance and
substation maintenance under both controllable and uncontrollable
outsourcing head has been dealt in a composite manner for the period from
2013-14 to 2016-17.
d) For finding out the expenditure to be admitted by the Commission, the
estimated expenditures of 2013-14 submitted by WBSEDCL are scrutinized
by the Commission so that overestimated value can be rationalized to a
reasonable extent. This is being done as otherwise the existence of over
estimated expenditure for 2013-14 may result into higher admitted amount for
fourth control period as because the computation for projection of expenditure
for 2014-15 to 2016-17 are done by applying the annual escalation rate over
the estimated figure of 2013-14. On the estimated value as provided by
WBSEDCL for 2013-14 Commission finds that against some elements the
estimation of expenditure seems to be on extremely higher side. The
Commission cannot accept such over-estimation. In any year this deviation
can occur for any item of expenditure but it cannot be considered as a trend
for future projection. Such items of expenditure which are estimated on higher
sides have been dealt in the next paragraph. In fact for realistic projection for
2013 – 2014 the impact of business volume increase has been considered by
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 89
the Commission in a same way as has been considered in the tariff order.
Accordingly, the expenditure items which are sensitive to consumer strength
moderately the impact of business volume increase has been given as 2%.
Such impact has been considered as 1% where the expenditure of item is
sensitive to distribution line length. Accordingly, the Commission has done its
own estimation based on the Table-1 of Annexure – 5B by applying its
prudence which are explained below item wise:
i) The trend of actual expenditure on lease line head during the period
2010-11 to 2013-14 is very erratic. The value of 2010-11 and 2011-12
has not been considered for escalation rate determination for future as
this was the initial period when such lease line was under commissioning
and it is being found that expenditure pattern is not commensurating with
the progress of lease line facility. Thus the expenditure of 2012-13 has
been only considered as rational data reflecting the past trend of actual
expenditure in proportion to lease line asset strength. Regarding Lease
rental charges as estimated by WBSEDCL for 2013-14 is about 284%
higher than the audited actual value of Rs 1666 lakh in 2012-13. By 2012-
13 already the primary lease line for WBSEDCL’s communication network
has been completed. Thus the estimated expenditure in 2013-14 cannot
be so high and hence it is estimated by the Commission for 2013-14 after
imposing WPI based inflationary rate along with impact of additional
impact due to increase in establishments of WBSEDCL on the audited
expenditure of 2012-13 . Such additional impact due to increase in
establishments has been considered as 0.25% for each 1% increase in
distribution line length (DLL) in line with the trend in increase in expenses
in rent charges under Administrative & General Expenses. Accordingly
the expenditure for 2013 -14 for lease rental as estimated by the
Commission is Rs 1829.94 lakh.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 90
ii) Expenses for complaint management mechanism is an expenditure
related to toll free telephone for ZCC, SMS charge to communicate with
mobile van, rental charges of IVRS system , separate telephone at
customer care centre for complaint management mechanism and anti-
theft toll free telephone charges. The whole system being now already
stabilized it will now be considered as a controllable item in the fourth
control period. WBSEDCL has not justified the reasons that why in 2013-
14 the estimated expenditure is 124% higher than the actual value of
2012-13. Commission finds no merits in such estimation. Thus the
estimated value for 2013-14 has been considered by giving an escalation
on actual value of 2012-13 due to impact in establishment of WBSEDCL
across the state during the period. Such additional impact due to increase
in establishments has been considered as 0.25% for each 1% increase in
distribution line length (DLL) in line with the trend in increase in expenses
in rent charges under Administrative & General Expenses. Accordingly
the expenditure for 2013 -14 complaint management mechanism as
estimated by the Commission is Rs 385.99 lakh. Impact of separate
inflationary trend for 2013-14 on this head has not been considered as in
telecom service such escalation rate is very insignificant as such sector is
still expanding at faster rate.
iii) WBSEDCL’s claim that service tax has increased presently due to
reverse charge and inclusion of more activities is not convincing to the
Commission at this stage as WBSEDCL cannot justify such claim by
providing detail of such activities and quantification of amount of reverse
charging for 2013-14. However during APR of WBSEDCL for 2013-14
and also for the years under fourth control period WBSEDCL shall come
with detail to establish their such claim. Thus under such scenario
estimation for Rates and taxes for 2013-14 has been done by taking the
average of actual annual expenditure on the same head for the period
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 91
2009-10 to 2012-13 as the actual expenditure in past shows high
variation. Accordingly the estimated value in the head of Rates & Taxes
for 2013-14 as computed by the Commission is Rs 1270 lakh.
iv) For Line and substation Maintenance (Excluding manpower) the annual
expenditure are found to have wide variation from year to year basis in
the period 2009-10 to 2012-13 and which seems to be gradually
stabilizing at the rear end of the said period. Thus sudden increase of
about 16.70% as estimated by WBSEDCL in 2013-14 over the
expenditure of 2012-13 is irrational as it is double the actual inflation of
7.48% for 2013-14. In such background Commission has estimated it by
taking admitted value on such head in the tariff order related to 2013-14.
Accordingly the estimated value of expenditure for line and substation
maintenance (excluding manpower) during 2013-14 as computed by the
Commission is Rs 3701.51 lakh which is considered to be sufficient in the
opinion of the Commission.
v) For Data Ware-housing the actual annual expenditure from 2009-10 to
2012-13 is within Rs 10 lakh except in 2012-13 when such expenditure
sharply increase to Rs 80 lakh. In absence of detail justification by
WBSEDCL along with supporting calculations the estimated expenditure
of Rs 93.36 lakh in 2013-14 with another increase of 16.70 % over the
expenditure of 2012-13 as done by WBSEDCL seems to be very high
specially (more than double of the inflation rate of 7.48% in 2013-14) in
the background of their recent initiatives in billing and other activity in
ERP (Enterprise Resource Planning) platform. In fact it is to be noted that
the sensitivity of Data Ware-housing very slightly depends on consumer
strength. In view of such assessment Commission has estimated the
expenditure on Data Ware-housing for 2013-14 by taking the same value
of Rs. 10.79 lakh which has been admitted in the tariff order for 2013-14.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 92
vi) For estimation of expenditure on back office job head for 2013-14 an
increase of 16.70% has been considered by WBSEDCL without giving
any justification of such large increase which is more than double the
inflation rate of 7.48% . In view of projected large scale new employment
by WBSEDCL in regular establishment during the period 2013-14 to
2016-17 as shown in form 1.17(h) of tariff application for 4th
vii) The expenditure on the head of meter reading and bill distribution is
highly sensitive to consumer strength as the rate under the outsourcing
orders are per transaction basis. Inflationary trend is not applicable after
the contract is awarded. In case of new contract agreement the likely
increase is considered to be largely neutralized by advantage of scale of
economics due to increased consumer strength as well as the process of
such out-source activity which is becoming more organized and efficient
with the passage of time. Moreover as WBSEDCL is now passing through
the transition period of switching from manual meter reading and bill
distribution system to spot billing mechanism where in a single instance
both meter reading and handing over the bill to consumer is done to
reduce the transaction cost. This has also playing a major role in cost
control in this head. Thus accordingly the estimated expenditure of 2013-
14 has been computed by the commission by giving the escalation over
the actual expenditure on this composite head of 2012-13 at the same
increase rate of expenditure that is found in 2012-13 over 2011-12 for
increase in every 1% increase in consumer strength. Accordingly the
control period
and also after considering the impact of different IT initiatives of
WBSEDCL alongwith ongoing projects of ERP based activities the
requirement of back office job is not required to be increased further.
Accordingly the estimated value of back office job for 2013-14 has been
kept at the same level of 2012-13 by the commission.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 93
estimated expenditure for 2013-14 on the head of meter reading and bill
distribution as done by the Commission is Rs.4832.10 lakh.
viii) The expenditure on the head of collection franchisee is highly sensitive to
consumer strength as the rate under the outsourcing orders are per
transaction basis. Inflationary trend is not applicable after the contract is
awarded. In case of new contract agreement the likely increase is
considered to be neutralized by advantage of scale of economics due to
increased consumer strength as well as the process of such out-source
activity which is becoming more organized and efficient with the passage
of time. Thus accordingly by giving the impact of increased consumer
strength of 2013-14 on expenditure of 2012-13 for the above two heads
Commission estimated the expenditure of 2013-14 for collection
franchisee as Rs 1154.44 lakh.
ix) The expenditure on the head of security is increasing fast from 2009-10 to
2012-13. Again an increase of 16.70% in 2013-14 seems to be high.
Moreover, detail scrutiny of such expenses is required by this
Commission. At present the average of actual expenditure of 2011-12
and 2012-13 i.e., Rs 3042.37 lakh has been considered as estimated
expenditure of 2013-14 by the Commission. During truing up in APR
WBSEDCL shall come up with all relevant information and documents to
justify their claim of so high amount of expenditure on security head.
x) For MCSU service, Call center service as per SOP regulation the
estimate of WBSEDCL in 2013-14 seems to be high at the rate of 16.70%
but it has not been changed as Commission is of the opinion that as
those activities has been fully roll down during the third control period
thus at that initial stage the expenditure growth rate was high. But
beyond 2013-14 such escalation rate shall reduced in the fourth control
period. Thus, as estimated by WBSEDCL, the expenditure in 2013 –
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 94
2014 has been accepted but beyond 2013 – 2014 for different ensuing
years growth rate will be reduced as dealt in subsequent paragraph. For
2013-14 the estimated repair and maintenance expenditure has been
accepted by the Commission in order to provide a starting base of fourth
control period with a flip so that WBSEDCL can gradually control its
expenditure in fourth control period with a lesser escalation target than
that of the estimated one in 2013-14.
xi) For insurance charges WBSEDCL has not explained that why the
estimated expenditure of Rs 801 lakh during 2013-14 have a high
escalated rate of 216% over the amount of Rs 370 lakh in 2012-13. It has
not also explained that again why in 2014-15 the projection by WBSEDCL
shows a decrease in expenditure on insurance head to an amount of Rs
672 lakh. The commission has noted the above irrationality and thus does
not rely on the expenditure of base year of 2013-14 as estimated by
WBSEDCL and consider the projected value of 2014-15 as also the
estimate value of 2013-14.
e) Where the past CAGR of expenditure of any above referred elements for the
third control period (2011-12 to 2013-14) is lesser than the concerned
inflation rate as provided in table 5.3.1-I in such case in line with CERC’s
principle 110% (an additional 10% margin over actual growth rate) of such
growth rate is considered as the annual escalation rate for 2014-15 to 2016-
17 for the following reasons:
i) to ensure the interest of stakeholders in a more better way from the point
of view of availability considerations of the network asset and different
services;
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 95
ii) to provide a comfort to WBSEDCL in carrying out O&M of the assets by
extending an additional insulation against uncertainty arising out of
increased expenditure for any unforeseen reason.
It is to be noted that for the said period the expenditure considered for 2013-
14 is estimated one made by the commission and for 2011-12 & 2012-13
actual expenditure has been taken. In certain cases the CAGR for larger
period is also considered where Commission finds that such decision will
provide more rational and better accuracy in the projected admitted cost.
f) Where the projected expenses by WBSEDCL are less than the estimated
value of 2013-14 and also the actual value of 2012-13 in such case no
escalation is being allowed for fourth control period because WBSEDCL’s
projection is considered as admitted figure.
g) Where the past data show irrational/asymmetric character in such case
Commission by applying due prudence take an appropriate escalation rate
which is discussed in relevant portions.
h) Where annual escalation rate or CAGR of past period crosses the concerned
inflation rate of the said past period in such case escalation rate for projected
expenditure due to business volume increase is computed from past trend by
reducing it with the concerned inflation rate of the relevant past period and
that has been explained in the relevant portions. In such case the annual
escalation rate for 2014-15, 2015-16 and 2016-17 are as follows:
Annual Escalation Rate (%) for any ensuing year = A+ R × BGR+Ad_F
Where A = Inflation rate (%) based on CPI or WPI or hybrid
(WPI+CPI) index as applicable for the fixed
charge element.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 96
R = Ratio of percentage annual increase in
expenses in the past period and percentage
increase in business volume parameter during
the same period.
BGR = Projected growth rate (%) for the ensuing year
of the business volume parameter to which the
fixed charge element under consideration is
sensitive.
Ad_F = Additional float in % as decided by commission
to provide insulation against uncertainty in
projected inflation or business volume growth.
For such annual escalation rate calculation the annual increase (%) in
expenses as required for calculation of R is decided by commission by taking
the lowest positive CAGR value from among CAGR of 2013-14 (i.e., annual
increase rate) or CAGR of 2011-12 to 2013-14 or CAGR of 2010-11 to 2013-
14 subject to different aspects considering rationality or level of asymmetric
character of past data as has been explained in the relevant portion. However
principally wherever R on computation found to be higher than one then in
such case R is considered not more than 1 as Commission is of the opinion
that rate of increase in expenses due to business volume increase cannot
surpass the rate of increase in business volume parameter unless there is
any specific reason which can be established by the licensee. Similarly when
R is found to be a value between 0.5 and 1 then also in ensuing year annual
escalation rate is further reduced by a small quantum with an objective of
gradual improvement in efficiency of the licensee in expenditure control by
utilizing different resources in a more effective manner.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 97
Where necessary while computing additional expenditure represented by
(R×BGR) of any element of fixed charge due to increase in business volume
that additional expenditure is modified in a reasonable and rational manner
after taking the impact of above mentioned sensitivity parameter on the
additional expenditure. Detail of such modification and any other specific
consideration are detailed out in relevant portion where each element of fixed
charge is dealt with. For controllable factor additional float of 0.5% is given to
cover any expenditure hike due to unforeseen reasons.
i) In line with the principle adopted in the tariff order of WBSEDCL for third
control period, Commission decides that for the ARR determination in the
tariff order of fourth control period the impact of increase in business volume
on different sub-heads/ heads will also be considered from the point of
sensitivity of the head/sub-heads to certain business volume parameter. For
such purpose in the business process of WBSEDL there are two important
business volume parameters such as Distribution line length (DDL) in Circuit
Kilometer (CKM) and Consumer strength. Different elements of fixed charge
elements are sensitive to either of the above two parameters and where such
element is sensitive to consumer strength there is variation in the degree of
such sensitivity. After applying such degree of sensitivity the number of
business parameters considered in this tariff order are Distribution Line
Length (DLL), Consumer Strength in moderate degree (CSM), Consumer
Strength in high degree (CSH) and Consumer strength with lesser degree
than CSM (CSM-L). The table 1 under Annexure 5B shows the concerned
business volume parameter sensitivity against different elements of the fixed
charges.
j) WBSEDL has projected consumer strength annually and its annual growth
rate for 2014-15, 2015-16 and 2016-17. But for distribution line length they
have projected annual growth rate of 14.57% during the same period without
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 98
giving the absolute value. Accordingly for the purpose of this tariff order the
target business parameters for 4th
Table 5.3.1- III
control period along with the estimated
value of 2013-14 are as follows:
Particulars 2013-14 2014-15 2015-16 2016-17 Consumer Strength (no.) 12855266 13940250 15064240 16240567 Increase(%) in Consumer strength 6.30 8.44 8.06 7.81 Distribution line length in CKM 467924.17 536100.72 614210.59 703701.07
Increase(%) in line length 14.57 14.57 14.57 14.57
In pursuance to regulation 8.1 of the Tariff Regulations while projecting the
above figure following considerations have been taken:
• As the original tariff application is submitted at the end of 2013-14 thus it
can be considered that the estimated data for 2013-14 will have high
degree of accuracy.
• The value related to 2013-14 on consumer parameters are estimated by
using the relevant audited data of 2012-13 and projected data of such
parameters for 2014-15 by WBSEDCL in their tariff application.
• The value related to 2013-14 on distribution line length parameters are
estimated by using the projected growth rate of 14.57% over the audited
data of 2012-13.
• The value of projected consumer strength of 2014-15 to 2016-17 has
been taken from Form 2.2 of the Annexure -2, i.e., Volume III of tariff
application.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 99
• The value 8.44% of increase in consumer strength for 2014-15 has been
taken from paragraph 5.8(c) of the tariff proposal in page 61 of Volume-I.
During truing up in Annual Performance Review (APR) of the above ensuing
years of 2014-15 to 2016-17 such projected distribution line length in CKM
and Consumer Strength in number as given in table 5.3.1-III shall be
considered as the basis against which the expenditure has been admitted
during concerned tariff order and accordingly truing up will be taken up
subject to the conditions as mentioned in paragraph 5.3.7.
k) For computation of computed expenditure by the Commission on different
heads for 2014-15 to 2016-17 the base expenditure over which the above
escalation rates are applied has been considered on the estimated
expenditure of 2013-14 made by WBSEDCL and duly modified in some
elements by the Commission as explained in paragraph (h) above. This is
being done as the application of tariff is submitted at the end of 2013-14 and
is likely to have little inaccuracy with respect to actual expenditure.
l) Based on the above principle the projected expenditure on above mentioned
different elements of fixed charges for 2014-15, 2015-16 and 2016-17 has
been computed and then compared with the claimed amount of WBSEDCL
for the said year and whichever is lowest is being admitted in this tariff-order.
m) However for recent past the distribution loss and AT& C losses are
increasing as shown below:
PERFORMANCE TREND OF WBSEDCL PARAMETERS UNIT 2010-11 2011-12 $ 2012-13 $ Distribution loss in % % 25.24 24.88 25.40 AT & C loss in % % 28.01 28.49 31.56 $ As per submitted data to CEA by WBSEDCL
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 100
After analyzing the performance of different licensees Commission feels that
WBSEDCL is required to improve their performance in overall sense where
losses due to technical reasons cannot be a major issue as for the last few
years since inception of APDRP capacitor bank projects and feeder
rationalization initiatives lot of technical intervention has been done through
the above and RADPRP projects to reduce the technical losses. In the
background of such initiatives it is natural that WBSEDCL must have take
adequate technical measures in rural electrification programme also to keep
the technical losses within a reasonable limit so that normative target of
WBSEDCL ‘s distribution loss could be achieved. For the last few years the
Commission has approved expenditure with high rate of increase but without
any tangible gain as seen from the last few years distribution and AT&C
losses.
WBSEDCL shall be aware of this situation and take appropriate measures to
contain the future retail tariff at reasonable rate. However in this tariff order
after analyzing the different escalation rate computed for activities which has
direct impact on distribution & AT&C loss such as repair maintenance
related controllable heads like the heads of repair & maintenance , line and
substation maintenance (except manpower & vehicle hiring cost)) , and meter
reading and bill distribution function it is found that the computed escalation
rate by WBSEDCL is at sub-inflationary level and of meager escalation rate
then Commission provides an additional float to provide an comfort to
WBSEDCL to ensure reduction of distribution losses and AT&C losses.
WBSEDCL shall also take into notice that in future such type of comfort may
further not be extended as simultaneous increase in distribution loss / AT & C
loss as well as continuous increase in expenditure in repair maintenance
related heads is to be treated as unnecessary pampering of inefficient
performance of WBSEDCL.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 101
5.3.2 Operation and Maintenance (O&M) Expenses : As per regulation 5.7 of the Tariff Regulation the components of Operation and
Maintenance (O&M) expense are as follows:
i) Repair & Maintenance Expenses (R & M)
ii) Administrative and General Expenses which are composed of followings
- Rent and lease charges
- Legal charges
- Auditor’s expenses, which include auditor’s fees, auditor’s expenses and
payment to auditors in any other capacity or for any work which is
necessary to be got done from them and audited.
- Consultancy charges for work which cannot be done in-house or is
uneconomical in doing in-house or is essential to be done from outside
sources except payment to Auditors.
- Other expenses necessary and arising from and ancillary or incidental to
the business of electricity except penalty etc. levied under this Act or any
other Act.
5.3.2.1 Operation and maintenance (O&M) Expenses for generation:
After analyzing the tariff application of WBSEDCL for the period from 2014-15 to
2016-17, while determining O&M expenses, the Commission has allowed O&M
expenses for generation in accordance with the norms specified in Schedule 9A
of the Tariff Regulations. Accordingly the admitted value for O&M expenses for
generation function is Rs. 4270.75 lakh, Rs. 4486.44 Lakh and Rs. 4707.65
lakh respectively and detail computation are given below:
Rs. in Lakh
Stations Installed capacity in MW
O&M Cost per MW as Tariff Regulations Admitted O&M cost
2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 Rammam HEP 51 9.69 10.17 10.68 494.19 518.67 544.68 Jaldhaka HEP 44 13.94 14.64 15.37 613.36 644.16 676.28 PPSP 900 2.15 2.26 2.37 1935.00 2034.00 2133.00 Small Hydro 89 13.80 14.49 15.21 1228.20 1289.61 1353.69 Total 4270.75 4486.44 4707.65
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 102
5.3.3 O&M Expenses for Distribution: Based on the laid down principle in paragraph
5.3.1 above following different sub-heads of O&M function in distribution are
determined. In this context tables in Annexure – 5B may be referred to for the
past trend of expenditure.
a) Repair & Maintenance (R&M) Expenditure and Rent : For both these
elements, the past escalation rate is CAGR of 2011-12 to 2013-14 is
considered as it provides the latest trend of two years and is better than
depending on one year value. Such rate is found to be higher than the
average inflation rate for the above period. Then by using such escalation
rate in the methodology as mentioned in sub-paragraph (h), (k) and (l) of
Paragraph 5.3.1 the values found for ensuing years of 2014-15 to 2016-17
are given in Table 5.3.3-I. While applying the methodology under sub-
paragraph (h) of Paragraph 5.3.1 the additional float is considered as 0.5% in
order to provide insulation against uncertainty in any expenditure hike due to
any unforeseen reasons and also to cover the logic for additional margin as
mentioned in sub-paragraph (e) of paragraph 5.3.1.
b) Audit fees and other administrative and General Expenses: For these
two elements the trend of escalation rate is CAGR of 2011-12 to 2013-14 and
such rate is found to be lower than the average inflation rate of the above
period. Thus by using such escalation rate in the methodology as mentioned
in sub-paragraph (e), (k) and (l) of Paragraph 5.3.1 the admitted values
found for ensuing years of 2014-15 to 2016-17 are given in Table 5.3.3-I.
c) Legal Charges: For this element the trend of escalation rate is CAGR of
2010-11 to 2013-14 in order to remove inflated escalated rate as it is noticed
that in 2011-12 the expenditure had gone down sharply after 2010-11 and
then again increased in 2012-13.Such escalation rate is found to be lower
than the average inflation rate of the above period. Thus by using such
escalation rate the methodology as mentioned in sub-paragraph (e), (k) and
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 103
(l) of Paragraph 5.3.1 the admitted values found for ensuing years of 2014-
15 to 2016-17 are given in Table 5.3.3 -I.
d) Thus the admitted expenditure under O&M expenses are as follows:
Table 5.3.3 -I (Rs. in lakh) Sl
No. Particulars As Claimed by WBSEDCL As Admitted by WBERC
2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 1. R & M Charges 30288.56 36028.92 42758.06 27903 31310 35133 2. Rent 1175.78 1398.62 1659.83 1081 1208 1350 3. Auditor’s Fees 195.98 217.75 237.52 180 182 184 4. Legal charges 356.32 392.28 431.86 338 353 369 5. Other A&G expenses 12138.99 14183.69 16305.84 10988 11411 11850 6. A&G expenses (2+3+4+5) 13867.07 16190.34 18635.05 12587 13154 13753 7. O&M expenses (1+6) 44155.63 52219.26 61393.11 40490 44464 48886
Note : For detail calculation three tables under Annexure-5B may be seen
5.3.4 Some Small Expenditures: Some of the small items are uncontrollable in
nature till the third control period and thus they are all dealt under this paragraph
as discussed below:
a) Expenditure for Lease Rental Line: For this element the past escalation
trend has been taken from annual escalation rate of 2013-14 because lease
rental line is a new area of activity and thus rational actual data only available
is for 2012-13 and the data estimated by commission for 2013-14 are
expected to be reasonably rational. Such annual escalation rates for these
elements are found to be higher than the concerned average inflation rate of
2013-14. Then by using such escalation rate in the methodology as
mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the values
found for 2014-15 is further inflated by Rs 600 lakh to accommodate the
impact of second lease line as proposed for the non R-APDRP area and such
inflated value is considered as admitted value for 2014-15. The rental
charges for secondary lease line are considered conservatively. Then by
applying the same escalation rate on the admitted amount of preceding year
the admitted amount for 2015-16 and 2016-17 are determined by the
Commission which are given in Table 5.3.4-I. While applying the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 104
methodology under sub-paragraph (h) of Paragraph 5.3.1 no additional float
is considered as the cost is uncontrollable one. Accordingly the admitted
amount for 2014-15 to 2016-17 has been found out and provided in the table
5.3.4-I. While submitting APR application the copies of the lease rental bill
that has been paid for primary and secondary lease lines are to be submitted
along with names of location that has been covered through lease line
records.
b) Expenditure for Complaint Management Mechanism: As Complaint
Management Mechanism is a new area of activity and data for 2011-12 to
2013-14 are available which basically covers the period of initial activity and
thus escalation rate for such period is high. As such mechanism is now
stabilized thus only rate of increase in expenditure for 2013-14 over 2012-13
has been considered as the escalation rate for future projection and which is
also found to be less than the inflation rate of the said period. Thus by using
such escalation rate in the methodology as mentioned in sub-paragraph (e),
(k) and (l) of Paragraph 5.3.1 the admitted values found for ensuing years of
2014-15 to 2016-17 are given in Table 5.3.4-I.
This element in fourth control period will be considered as controllable factor
as the character of such expenditure head is being already stabilized.
c) Expenditure for Rates and taxes: For this element the past escalation
trend has been taken from CAGR of 2010-11 to 2013-14 as it only reflects
positive escalation rate out of three period under consideration. Such rate is
found to be lower than the average inflation rate of the above period. Thus by
using such escalation rate in the methodology as mentioned in sub-
paragraph (e), (k) and (l) of Paragraph 5.3.1
d) Expenditure for Insurance : The past trend of annual escalation rate is
extremely high and in the submission of WBSEDCL no reason has been
the admitted values found for
ensuing years of 2014-15 to 2016-17 are given in Table 5.3.4-I.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 105
mentioned that why the estimated expenditure of Rs 801 lakh during 2013-14
have a high escalated rate of 216% over the amount of Rs 370 lakh in 2012-
13. In fact in 2014-15 the projection by WBSEDCL shows a decrease in
expenditure to an amount of Rs 672 lakh. Commission feels that WBSEDCL
shall try to contain the expenditure on this heads gradually. Thus though the
projected expenditure of 2014-15 by WBSEDCL has been admitted by the
commission, but for 2015-16 and 2016-17 an escalation rate in moderate
form has been considered by taking R=0.25 while using the formula under
sub-paragraph (h) of paragraph 5.3.1 considering that additional expenses on
this element will increase by 0.25% for increase in 1% of distribution line
length in addition to normal inflationary rate. Accordingly the admitted amount
for 2014-15 to 2016-17 has been found out and provided in the table 5.3.4-I.
e) The admitted amount in the ensuing years of the fourth control period for the
above four uncontrollable expenditure in comparison to the claim of
WBSEDCL has been given in the table 5.3.4-I below:
Table- 5.3.4-I Sl
No. Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC
2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 1. Lease Rental Line 5604.15 6169.61 6792.12 2587 2856 3153 2. Complaint Management Mechanism 564.68 671.07 797.15 393 400 407 3. Rates & Taxes 3322.70 3878.90 4524.95 1388 1409 1484 4. Insurance 672.00 805.00 966.00 672 746 832
Note : For detail calculation three tables under Annexure- 5B may be seen
5.3.5 Outsourcing Expenditure (except manpower and vehicle hiring Cost): Under this head there are number of elements for which the expenditure for
2014-15 to 2016-17 has been computed by the Commission as detailed out
below:
a) Expenditure for Data Ware Housing and Franchisee Cost : For both
these elements the admitted expenditure is computed by the Commission by
applying the methodology of sub-paragraph (h) , (k) and (l) of paragraph
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 106
5.3.1 where the escalation rate considered for projection purpose for each
head are as follows:
• For data ware-housing the escalation rate considered for projection
purpose is the CAGR of 2011-12 to 2013-14 as it is found as only other
positive value and most rational in comparison to very high escalation
rate derived from larger period.
• For Franchisee cost the escalation rate considered for projection purpose
is the annual growth rate of 2013-14 as it is found the most rational in
comparison to very high escalation rate derived from the other two larger
periods. In this context it may be noted that projection of annual
escalation by about 19% in 2014-15 to 2016-17 is high in the view of
Commission especially in absence of any proper justification on this
ground.
However while using the formula under sub-paragraph (h) of paragraph 5.3.1
additional float is given by 0.5 % for data ware housing to provide insulation
to this controllable item against uncertainty of expenditure hike due to any
unforeseen reasons. but for franchisee cost the R has been taken as one as
explained earlier and no additional float has been given as R=1 itself has
inherent float as under any head cost cannot increase proportionately with
the increase in business volume. Thus the admitted amounts of these two
elements are given in Table 5.3.5-I.
b) Expenditure for Meter reading & bill distribution, Collection franchisee and Line & substation maintenance (excluding Manpower) : For all these
three elements the methodology followed for finding out the admitted
expenditure for 2014-15 to 2016-17 is as per sub-paragraph (e) , (k) and (l) of
paragraph 5.3.1 where the escalation rate for projection purpose has been
considered as detailed below:
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 107
• For Line & substation Maintenance (excluding Manpower) the escalation
rate for 2013-14 has been considered as those are the lowest of all other
corresponding past periods and found to be giving a rational result which
is compatible to the latest trend specially in the background of quite
comfortable figure of estimated value of base year of 2013-14. For the
earlier period of 2010-11 to 2013-14 the escalation rate is negative and
thus ruled out. The earlier period of 2011-12 to 2013-14 has not been
considered as to the Commission’s opinion the estimated value of 2013-
14 itself has sufficient float as that part is liberally assessed. However in
line with principle as laid down in paragraph sub-paragraph (m) of
paragraph 5.3.1 an additional float is considered to give the overall
escalation rate as a 2%.
• For collection franchisee the escalation rate for 2013-14 has been
considered as those are the lowest of all other corresponding past
periods and found to be giving a rational result in comparison to very
high escalation rate found for the larger period. In this context it may be
noted that projection of annual escalation by about 19% in 2014-15 to
2016-17 is high in the view of Commission specially in absence of any
proper justification in this ground.
• For Meter Reading and bill distribution the annual escalation rate of 2013-
14 is being considered as it is the lowest value and there is advantage of
gradual expansion of spot – billing and reduction in transaction cost is
expected as detailed in paragraph 5.3.1 (d) (vii) above. However in line
with principle as laid down in paragraph sub-paragraph (m) of paragraph
5.3.1 an additional float is considered to give the overall escalation rate
as at 3% for 2014-15, 4% for 2015-16 and 5% for 2016-17.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 108
Accordingly the admitted amounts of these four elements are given in Table
5.3.5-I.
c) Expenditure for Back office job: For this elements escalation rate has been
considered as the projected inflation rate only for the concerned period as in
the past the growth rate are extremely high compared to the estimated one of
2013-14 which is nil. In both these cases other methods are followed to get a
reasonable expenditure which can be admitted by the Commission. In this
method only the projected inflation rate of 2014 – 2015, 2015 – 2016 and
2016 – 2017 has been applied over the estimated expenditure of 2013 –
2014, 2014 – 2015 and 2015 – 2016 respectively. Accordingly the admitted
amounts of this element has been computed by applying sub-paragraph (k)
and (l) of paragraph 5.3.1 and such admitted amount for the ensuing years of
fourth control period are given in Table 5.3.5-I.
d) Based on the above discussion the admitted amount for all the ensuing years
of fourth control period against the claimed amount are given below:
Table- 5.3.5-I (Rs. in lakh) Expenditure on Outsourcing Cost (excluding manpower and vehicle hiring cost)
Sl No.
Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
1. Line Maintenance Sub-station Maintenance (Excluding Manpower)
5691.39 6700.03 8034.47 3776 3852 3929
2. Data Ware-housing 111.45 132.57 157.33 12 13 14 3. Back office Job 402.81 479.15 568.64 305 328 353 4. Franchisee Cost 636.66 757.32 898.77 615 721 843
5. Meter Reading & Bill Distribution 6596.46 7846.64 9312.16 4977 5176 5435
6. Collection Franchisee 1512.94 1799.67 2135.80 1234 1320 1411 7. Total (Sum of 1to 6) 14951.71 17785.38 21107.17 10919 11410 11985
Note : For detail calculation please see three tables under Annexure- 5B may be seen
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 109
5.3.6 Outsourcing Expenditure (manpower and vehicle hiring Cost): Under this
head there are four number of elements for which the expenditure for 2014-15 to
2016-17 have been computed by the Commission based on the methodology as
mentioned under sub-paragraph (h), (k) and (l) of paragraph 5.3.1 because in all
these cases the escalation rate based on past trend is found to be higher than
the concerned inflation rate. The escalation rates alongwith past period
considered for such computation are as follows:
• For the item Manpower for line & sub-station maintenance the escalation
rate for expenditure determination of the period from 2014-15 to 2016-17 is
the annual escalation rate of 2013-14. The escalation rate of only one year
instead of a larger period is not considered as that would have given higher
escalation rate which would have not been compatible with the present
scenario of increasing involvement of outsourcing where escalation rate is
reducing due to advantage of scale of economics.
• For the item Security expenses, Call Centre (as per SOP Regulations)
expenses and Mobile Service (MCSU as per SOP Regulations) expenses
the escalation rate for expenditure determination of the period from 2014-15
to 2016-17 is the CAGR of the expenditure against the corresponding
element during the period of 2011-12 to 2013-14. This period is considered
as it gives the lowest escalation rate which is reasonable in view of the fact
that all the three services are now almost stabilized.
In the above methodology no additional float has been given in line with the
decision for other uncontrollable expenditure as discussed in sub-paragraph (a)
of paragraph 5.3.5. Based on the above discussion the admitted amount for all
the ensuing years of fourth control period against the claimed amount are given
in the following Table 5.3.6-I.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 110
Table- 5.3.6-I (Rs. in lakh) Expenditure on Outsourcing Cost (manpower and vehicle hiring cost)
Sl No. Expenditure Head As Claimed by WBSEDCL As Admitted by WBERC
2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
1. Manpower for Line Maintenance and substation maintenance
9824.49 12086.45 15043.84 8553 9685 10966
2. Security Expenses 5408.71 6738.26 8296.77 3365 3800 4292
3. Call Center (ZCC/CRC) as per SOP Regulation 2162.14 2871.91 3708.30 2011 2276 2573
4. Mobile Service (MCSU as per SOP Regulation) 3050.10 3928.16 5048.33 2591 2907 3259
6. Total(1+2+3+4+5) 20445.44 25624.78 32097.24 16520 18668 21090 Note : For detail calculation please see three tables under Annexure- 5B may be seen
5.3.7 It is to be noted that the estimated expenditure those are only determined by the
Commission for 2013-14 against any head or subheads as discussed above in
sub paragraph (i) to (ix) of paragraph 5.3.1(d) has been considered as base year
expenditure for those heads for tariff determination purpose. In case any of such
estimated expenditure made by the commission is found to be less than the
audited actual expenditure for 2013-14 vis-à-vis business volume parameter
increases then the consequential impact on the projected expenditure against
concerned heads/sub-heads for the period 2014-15 to 2016-17 will be passed
through tariff in APR of concerned year separately irrespective of whether such
item is controllable factor or uncontrollable factor. During truing up exercise in
APR of the concerned year the estimated expenditure of all the elements of
different heads as mentioned in paragraph 5.3.1 (d) above for 2013-14 are to be
considered as has been incurred against the actual value of the business volume
parameter (i.e., DLL and consumer strength) that has been achieved at the end
of 2013-14. In case the actual value of DLL or consumer strength in 2013-14 is
found to be higher than the estimated value that has been considered for 2013-
14 in this tariff order then impact of such enhanced amount will be added to the
projected value of DLL or Consumer strength for the period 2014-15 to 2016-17
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 111
of the tariff order to find out the target business volume parameter against the
projected expenditure that has been admitted in the tariff order. On the basis of
such revised targeted business volume parameter the truing up exercise in APR
will be done specially while applying the regulation 2.6.10(v) of the Tariff
Regulations.
5.4 Employee Cost:
5.4.1 WBSEDCL has projected the employee cost for 2014 – 2015, 2015 – 2016
and 2016 – 2017 as Rs. 120934.34 lakh, Rs.136644.24 lakh and
Rs.154477.65 lakh respectively. On this projected cost the Commission has
also noted the following submissions of WBSEDCL.
a) To cope up with the rapid growth in consumer strength mostly in rural
area due to i) RGGVY program, R-APDRP Part A and Part B scheme,
segregation of lines and construction of new sub-stations under system
improvement schemes, ii) removal of entry level barrier by introduction of
easy new service connection procedures for the L&MV consumers and
due to increase in capacity to disperse large number of application of
new consumers, WBSEDCL is to maintain a certain level of employees
in the ensuing years and for this WBSEDCL requires to recruit new
employees in 2014 – 2015, 2015 – 2016 and 2016 – 2017.
b) Due to demographic and geographic consideration, WBSEDCL is to
maintain a certain minimum level of employees to provide service to its
consumers.
c) Increase in Dearness Allowance (DA) has been considered by
WBSEDCL at 12% on average basis for all the years under the control
period. Normal increase @ 3% in basic and grade pay due to increment,
promotion and other staff benefits as per trend for the ensuing years
2014 – 2015, 2015 – 2016 and 2016 – 2017 has also been considered.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 112
d) Salary impact of new entrants.
e) Terminal benefits.
f) The general inflation rate has been considered @ 10.9% as per
October, 2013 Consumer Price Index (CPI) as published by Reserve
Bank of India (RBI) for all the years under the fourth control period.
5.4.2 The total number of employees in WBSEDCL during 2012 – 2013 was 16837.
The number of employees as projected by WBSEDCL for the years 2013-14,
2014-15, 2015-16 and 2016-17 in Form 1.17 (h) to Annexure – 1 are 16837,
18570, 22125 and 22125 respectively. Thus, WBSEDCL has not considered
any increase in number of employees during the year 2013 – 2014 and 2016-
17. WBSEDCL has considered an increase in number of employees in the
year 2014-15 and 2015-16 @ 10.29 % and 19.% respectively. WBSEDCL has
not, however, given any justification against such high increase in number of
employees during those years as mentioned above. Thus, the increases in
projected number of employees at a level of 10.29% and 19.14% for the years
2014-15 and 2015-16 are not acceptable to the Commission. The
Commission, therefore, does not consider increase in number of employees
as projected by WBSEDCL but considers a hike of 2.11% (0.25% for each 1%
increase in number of consumer as projected for 2014-15) in employee cost
annually for the years 2013 – 2014 to 2016 – 2017 against the projected
increase in business volume while estimating the employee cost for the
ensuing year in subsequent paragraphs.
5.4.3 The Commission now analyzes the impact of normal increment and increase
in DA in employee cost for the respective years. The total amount of employee
cost including Directors’ remuneration as projected by WBSEDCL for the
years 2014-15, 2015-16 and 2016-17 at Rs. 120934.34 lakh, Rs. 136644.24
lakh and Rs 154477.65 lakh respectively are net of capitalization and inclusive
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 113
of terminal benefits of Rs 34785.50 lakh, Rs 37629.45 lakh and Rs 43072.49
lakh payable to terminal benefit fund for the respective three years. As stated,
the element of DA has been estimated considering average rate of DA at
108% for 2014-15, 118% for 2015-2016 and 128% for 2016-17 respectively for
the fourth control period.
5.4.4 The employee cost including terminal benefits and Directors’ emoluments and
net of capitalization has been shown in the annual report and accounts for
2012-13 as Rs. 96125 lakh. WBSEDCL has estimated the employee cost for
2013 – 2014 as Rs. 109001.98 lakh, which is 13.4% higher than that of actual
expense for 2012-13. The latest five DA (Dearness Allowance) increase in
Central Government during 01.07.2012 to 01.07.2014 is 7%, 8%, 10%, 10%
and 7%. Considering the impact of two instalments each at 10% of basic pay
and annual increment @ 3% on basic pay, the annual increase in employee
cost comes to 10.80% [{(3x8% + 6x18% + 3x28% + 12x3%) / 12} x 1/2} +
(3%x1/2x0.2)] [basic pay in the salary is 50% considering existing DA @ 80%
of basic pay and HRA @ 20% of basic pay in the salary] for the year 2013-14
over the employee cost incurred during the year 2012-13. The Commission
considers the increase in employee cost during 2013 – 2014 @ 12.91%
(10.80% for D.A. increase + 2.11% for increased consumer strength) over the
actual employee cost of 2012-13 to arrive at the employee cost for 2013-14
and the same is worked out at Rs 108534.74 lakh. The last D.A. increase
announced by the Central Government w.e.f. 01.07.2014 is 7%. Considering
the impact of D.A. instalments @ 10% w.e.f. 01.01.2014 and @ 7% w.e.f.
01.07.2014 and considering the half yearly D.A. increase @ 7% in future and
annual increment @ 3% on basic pay, annual increase in employee cost for
the year 2014 – 2015 comes at 9.07% [{(3x10% + 6x17% + 3x24% + 12x3%) /
12} x 1/2.27} + (3%x1/2.27x0.2)] (basic pay in the salary is 1/2.27 considering
the D.A. @ 107% of basic pay and HRA @ 20% of basic pay in salary) over
the estimated employee cost for 2013-14. The Commission, thus, considers
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 114
the increase in employee cost for the year 2014-15 over the estimated
employee cost for 2013-14 @ 11.18% (9.07% + 2.11% for increased
consumer strength). The estimated employee cost for the year 2014 – 2015,
thus works out at Rs. 120668.92 lakh. The Commission admits Rs. 120668.92
lakh as employee cost for the year 2014-15. The Commission considers an
annual increase in employee cost @ 11.18% and admits Rs 134159.71 lakh
and Rs. 149158.77 lakh for the years 2015 – 2016 and 2016 – 2017
respectively.
5.4.5 The function wise break up as well as in total of employee cost including
terminal benefits as admitted by the Commission for the years 2014-15, 2015-
16 and 2016-17 are as follows:
Rupees in lakh Employee Cost
Type of Cost 2014-15 2015-16 2016-17 Generation Distribution Total Generation Distribution Total Generation Distribution Total
Salary and Wages including other staff welfare benefits
2849.44 83110.33 85959.77 3226.11 92343.96 95570.07 3736.00 102518.81 106254.81
Terminal Benefit 1150.55 33558.60 34709.15 1302.65 37286.99 38589.64 1508.53 41395.43 42903.96
Total Employee cost 4000.00 116668.92 120668.92 4528.76 129630.95 134159.71 5244.53 143914.24 149158.77
Note; Employees cost is Including terminal benefit cost as shown in paragraph 5.4.3 The function wise allocation between generation and distribution is being done
on the basis of same proportion as has been done in the proposal of
WBSEDCL.
5.5 Depreciation:
WBSEDCL has projected depreciation for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 in terms of the Tariff Regulations. The depreciation projected
by WBSEDCL for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 are
Rs. 50301.00, Rs. 61371.00 lakh and Rs. 69042.00 lakh respectively.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 115
WBSEDCL is directed to furnish the details of addition/ deletion of asset with
the opening value of the asset in APR of the respective year along with their
linkage with capital expenditure programme. The Commission will review the
depreciation on compliance of such directives during APR for the concerned
years. The depreciation admitted by the Commission as per the projection of
WBSEDCL for the years 2014-15, 2015-16 and 2016-17 are as follows: Rs. in lakh
Depreciation
Sl. No Particular Amount as Admitted 2014-15 2015-16 2016-17
1 Generation 9087.00 10223.00 11501.00 2 Distribution 35184.00 42651.00 47982.00 3 Metering Asset 5603.00 8016.00 9018.00 4 Other Assets 427.00 481.00 541.00 5 Sub-total (Distribution) 41214.00 51148.00 57541.00 Total 50301.00 61371.00 69042.00
5.6 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. 1800.00 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 2014 – 15, 2015-16 and 2016-17. The said Rs. 13005 lakh has been
allocated as proposed by WBSEDCL between generating station and
distribution system as per following table.
Interest on bond related discharging pension & gratuity liabilities
Segment Admitted
2014-15 2015-16 2016-17 Gen. Dist. Gen. Dist. Gen. Dist.
Interest on bonds for Pension fund of 13005.00 1263.00 11742.00 1462.00 11543.00 1536.00 11469.00
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 116
5.7 Interest on borrowings:
5.7.1 WBSEDCL inherited an amount of Rs. 302200.00 lakh as borrowed capital as on
31st
5.7.2 WBSEDCL has projected interest on capital borrowings net of capitalization at
Rs. 49666.80 lakh, Rs. 66849.22 lakh and Rs. 76279.91 lakh for the years 2014
– 2015, 2015 – 2016 and 2016 – 2017 respectively. This interest amount is
however excludes the interest of Rs. 13005.00 lakh on pension bond of Rs.
153000.00 lakh.
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/3R-29/2006 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. WBSEDCL has also drawn fresh
loan for different capital works. WBSEDCL has submitted its projections of
repayment of borrowings, programmes for fresh borrowings as well as the
chargeable amount of interest to the revenue account after considering the
Capitalization of interest.
5.7.3 It is seen from the details of loans and interest thereon submitted in Form – C to
Annexure – 1 that the projected interest for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 includes interest on fresh loan drawn from Banks / FI during the
years 2013 – 2014, 2014 – 2015, 2015 – 2016 and 2016 – 2017 of Rs.
101743.00 lakh, Rs. 144185.00 lakh, Rs. 145963.00 lakh and Rs. 116346.00
lakh. The interest claimed on such loans for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 are Rs. 10430.00 lakh, Rs. 30891.00 lakh and Rs. 42251.00
lakh respectively. The amount of chargeable interest on capital borrowing as per
audited annual accounts for 2012 – 2013 was Rs. 39205.00 lakh. The
Commission admits the claim of WBSEDCL on interest on capital borrowings for
the years 2014 – 2015, 2015 – 2016 and 2016 – 2017, subject to the condition
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 117
that WBSEDCL shall furnish the details and purpose of the new loans with
supporting documents along with their APR applications for 2014 – 2015 and
onwards failing which no interest on such loans will be considered in future tariff.
5.7.4 The allocation of interest between generation and distribution has been done in
the same ratio as proposed by WBSEDCL based on the purpose of the loan and
its utilization.
Rs. in lakh Interest on Borrowing
Sl. No Particular Amount as Admitted
2014-15 2015-16 2016-17 1 Generation 15473.48 19638.46 21264.60 2 Distribution 34193.32 47210.76 55015.31 3 Total 49666.80 66849.22 76279.91
WBSEDCL is directed to submit the scheme wise details of the loan taken during
2013-14 and onwards in the APR for 2014-15 and onwards, as directed in
paragraph 5.7.3 of this order.
5.8 Other Finance Charges:
The estimation of other finance charges as submitted by WBSEDCL in specified
format 1.17(c) is for a total amount of Rs. 728.13 lakh for 2014-15, Rs. 753.98
lakh for 2015-16 and Rs. 786.11 lakh for 2016-17. The actual expense for 2012 –
2013 was 712.00 lakh. Considering the same the other finance charges
consisting of guarantee commission and Bank charges are admitted as proposed
by WBSEDCL. The cost allocations for distribution and generation function are
done in the same proportion as projected in the MYT application.
Rupees in Lakh Years Generation Distribution Total
2014-15 48.11 680.02 728.13 2015-16 50.79 703.19 753.98 2016-17 54.75 731.36 786.11
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 118
5.9 Bad Debts:
WBSEDCL has not projected any amount on the head of bad debts for any of the
ensuing year under the fourth control period. The Commission, thus, does not
consider any amount under the head bad debt for any ensuing year under the
fourth control period. In case of any bad debt actually written off in any year,
WBSEDCL shall claim the same as per provision of regulation 5.10.1 of the Tariff
Regulations in their APR application for the concerned year.
5.10 Minimum Alternate Tax
On Minimum Alternative Tax, the amounts claimed by WBSEDCL are admitted
subject to adjustment in APR as per the provision of Tariff Regulations.
WBSEDCL projected expenses for income tax at the level of Rs.823.90 Lakh,
Rs.906.26 Lakh and Rs. 996.92 Lakh for 2014-15, 2015-16 and 2016-17
respectively which are being admitted by the Commission as per provision of the
Tariff Regulations. The entire amount is allocated to distribution function.
5.11 Interest on Consumers’ Security Deposits
WBSEDCL has claimed towards interest on consumers’ security deposit of Rs.
7033.64 lakh for 2014-15, Rs. 7983.18 lakh for 2015-16 and Rs. 8845.36 lakh for
2016-17. The actual amount of interest accrued on consumers’ security deposit
during 2012 – 2013 as per audited annual accounts was Rs. 6271.00 lakh. In
view of the same, the projected value of interest on consumer security deposit for
2014 – 2015, 2015 – 2016 and 2016 – 2017 is admitted as Rs. 7034.00 lakh, Rs.
7983.00 lakh and Rs. 8845.00 lakh respectively after due rounding off. The entire
amount is allocated to distribution function.
5.12 Reserve for Unforeseen Exigencies
WBSEDCL has not claimed any amount under the head reserve for unforeseen
exigencies for the years in 2014-15, 2015-16 and 2016-17 and the Commission
also does not consider to allow any amount under this head.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 119
WBSEDCL is, however, directed to maintain the funds lying with them as per
provision of the regulation 5.24 of the Tariff Regulations.
5.13 Interest on Working Capital:
WBSEDCL has stated that in accordance with the direction of the Commission,
the security deposit of the permanent consumers (excluding provision for security
deposit) during the years 2014 – 2015, 2015 – 2016 and 2016 – 2017 has been
considered for utilization as working capital during the respective year and no
amount has been claimed against the head interest on working capital for the
ensuing years. The Commission also does not consider any amount under the
head for any ensuing year. The necessity of borrowing working capital, however,
cannot be ruled out. If any such borrowing is done for any of the years, the
interest on that will be considered for re-imbursement through APR for the
concerned year.
5.14 Return on equity
WBSEDCL has proposed normative return of Rs. 73999.00 lakh each year on
the average equity base of Rs. 354770 lakh for the years 2014 – 2015, 2015 –
2016 and 2016 – 2017. Such normative return has been asked for distribution
function only. While computing the normative return, WBSEDCL has considered
the return @ 20.88% on pre-tax basis.
WBSEDCL in their computation of equity base in Form 1.20(a) to Annexure – 1
has shown the admissible equity base at the beginning of the year 2014 – 2015
as 354474.00 lakh while the estimated admissible equity base at the end of the
year 2013 – 2014 is 290568.00 lakh. The Commission, in the process of
computation, has viewed the paid up share capital as on 31.03.2013 as per
audited annual accounts of WBSEDCL for 2012 – 2013 and the projected
addition to equity base vis-à-vis the projected addition to fixed assets during the
year 2013 – 2014. It is also seen from the annual accounts of 2012 – 2013 that
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 120
the closing balance net surplus at the end of 2012 – 2013 was (-) 16083.00 lakh.
Thus the addition to equity from surplus is not considered during 2013 – 2014. In
this process the Commission considers the closing admissible equity base of the
year 2013 – 2014 as well as the opening admissible equity base for 2014 – 2015
as Rs. 225674.00 lakh. WBSEDCL has not proposed for any equity addition
during the years 2014-15, 2015-16 and 2016-17. WBSEDCL has not also
proposed for utilization of free reserve for any asset creation during the ensuing
years. The Commission considers the opening equity base as Average Equity
Base for the respective years and allowed 16.5% return on the same in terms of
Tariff Regulations. The workings are shown in the following table:
Rupees in Lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1 Actual equity base considered at the beginning of the year including free reserve 225674.00 225674.00 225674.00
2 Admissible equity base at the beginning of the year 225674.00 225674.00 225674.00 3 Addition to Equity base for the year 0 0 0 4 Actual Equity base at the end of the year [(1) + (3)] 225674.00 225674.00 225674.00
5 Net addition to fixed asset during the year {from 1.18(a)} of Annexure – 1 at Volume - IIB 235018.00 138743.00 90281.00
6 Normative addition to Equity base {30% of (5)} 70505.00 41623.00 27084.00 7 Addition to equity base considered for the year lower of (3) and (6) 0 0 0 8 Admissible equity base at the end of the year (2) + (7) 225674.00 225674.00 225674.00
9 Average admissible equity base to be considered for return {(2) + (8)}/2 225674.00 225674.00 225674.00
10 Rate of return considered 16.5% 16.5% 16.5% 11 Return on equity (ROE) 37236.21 37236.21 37236.21
The opening equity base of 2015-16 and 2016-17 will be subject to change
during the truing up in APR of the respective year and will be the closing balance
of the equity base in the APR of the preceding year of the particular respective
year.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 121
5.15 Income from Non-Tariff Sources
The income from non-tariff sources comprising rental of meters and other
apparatus, delayed payment surcharges, interest from investment income etc. as
projected by WBSEDCL as Rs. 34399.42 lakh, Rs. 35306.48 lakh and Rs.
37035.86 lakh for 2014-15, 2015-16 and 2016-17 respectively which is admitted
by the Commission as it is found to be rational in consideration of the actual
income during 2012 – 2013.
5.16 Interest Credit
In terms of regulation 5.5.3 of the Tariff Regulations, WBSEDCL has proposed
Rs. 2009.00 lakh for 2014-15, Rs. 3183.44 lakh for 2015-16 and Rs. 3966.13
lakh for 2016-17 as interest credit to be refunded while determining the Net
Aggregate Revenue Requirement for the corresponding year in tariff as the
amount of chargeable depreciation is more than the amount of loan repayable for
those years. As the depreciation amount allowed in this order has been reduced
from the amount projected by WBSEDCL, thus the Commission computes the
amount afresh based on the depreciation allowed, the projected schedule of
repayment of loan and weighted average rate of interest of borrowings and
admits the same as shown below:
Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1. Depreciation Allowed 50301.00 61371.00 69042.00 2. Repayment as proposed 25126.00 26349.00 26395.00 3. Excess fund created 25175.00 35022.00 42647.00 4. Weighted average rate of interest of existing loan 9.2% 9.2% 9.2% 5. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52
In absence of any specific proposal from WBSEDCL and information about
break-up of repayment of the loan specific to generation and distribution, the
Commission decides to allocate the same in the proportion to depreciation
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 122
allowed to generation and distribution for respective years for both proposed and
admitted amounts as shown in the following table subject to final adjustment on
the basis of actual audited data in the APR for the concerned years.
Rupees in lakh Sl. No. Particulars 2014-15 2015-16 2016-17
1. Generation 418.41 536.72 653.58 2. Distribution System 1897.69 2685.30 3269.94
3. Interest Credit admitted by the Commission 2316.10 3222.02 3923.52
5.17 Transmission charges payable to WBSETCL
WBSEDCL has asked for a provision for amounts of Rs. 112834.87 lakh in 2014-
15, Rs. 139700.17 lakh in 2015-16 and Rs. 145217.00 lakh in 2016-17 towards
transmission charges payable to the State Transmission Utility, i.e., West Bengal
State Electricity Transmission Company Ltd (WBSETCL) based on the tariff
application submitted by WBSETCL for the concerned year, the Commission has
finalized the amount of the Aggregate Revenue Requirement (comprising of all
its fixed charges) of WBSETCL and the same has come to Rs. 95537.89 lakh in
2014-15, Rs. 113879.69 lakh in 2015-16 and Rs. 117845.19 lakh in 2016-17. The
particulars will be available in the Commission’s order in Case No: TP-60/13-14
in regard to WBSETCL for the years 2014-15, 2015-16 and 2016-17. The
Commission accordingly allows a sum of Rs. 95537.89 lakh, Rs. 113879.69 lakh
and Rs. 117845.19 lakh payable by WBSEDCL to WBSETCL as transmission
charges in 2014-15, 2015-16 and 2016-17 respectively.
5.18 CTU Charges
The projection of WBSEDCL on CTU charges is Rs. 41177.00 lakh, Rs.
48054.00 lakh and Rs. 50963.00 lakh for the years 2014 – 2015, 2015 – 2016
and 2016 – 2017 as per newly introduced Point of Connection (POC) charge
method by CERC. As per annual accounts the amount paid in 2012-13 is Rs.
42594.00 lakh, which is as per POC method. Thus, the amounts admitted by the
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 123
Commission for 2014-15, 2015-16 and 2016-17 are Rs. 41177.00 lakh, Rs
48054.00 lakh and Rs. 50963.00 lakh respectively and considered under cost of
distribution function only.
5.19 ERPC Charge
WBSEDCL has projected ERPC charge as Rs. 15.00 lakh, Rs. 15.00 lakh and
Rs. 15.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively. Such projected amounts are admitted by the Commission.
5.20 System operation charges payable to POSOCO
WBSEDCL has projected system operation charge payable to POSOCO at Rs.
410.00 lakh each year for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
which is admitted by the Commission.
5.21 SLDC Charges
WBSEDCL has projected SLDC charges as Rs. 2172.00 lakh, Rs. 2388.00 lakh
and Rs. 2619.00 lakh for the years 2014 – 2015, 2015 – 2016 and 2016 – 2017
respectively. Such projected amounts are admitted by the Commission.
5.22 Adjustment of Amounts received towards Unscheduled Interchange (UI)
No amount on benefit from UI is considered as no energy on UI drawal is
projected by WBSEDCL for any ensuing year under the fourth control period.
However, any income from UI will be viewed on actual basis in the APR for the
respective years as per provisions of the Tariff Regulations.
5.23 Expenses attributable to Sale of energy to persons other than consumers and licensees of the Commission.
The expenses on this head as proposed by WBSEDCL has not been considered
as there is change in power purchase cost than that has been proposed by
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 124
WBSEDCL due to number of reasons as explained in this order. Moreover, the
quantum of sale to persons other than consumer and licensees are changed than
that has been projected by WBSEDCL as shown in energy balance
computations. Thus expenses attributable to sale of energy to persons other than
consumers and licensees of the Commission under fourth control period for
2014-15, 2015-16 and 2016-17 have been admitted as Rs. 130791.39 lakh, Rs
139664.28 lakh and Rs. 121188.13 lakh respectively considering average power
purchase cost of WBSEDCL for the respective years, subject to adjustments in
APR / FPPCA for the concerned years.
5.24 Sharing of benefits from sale of power to persons other than the consumers and licensees of the Commission:
Commission observes that due to volatile market the projections on such sale
have no compatibility at all with the actuals of the year. Due to the above reason
the projected tariff will be distorted if any gain sharing is considered on the basis
of such projected sale which ultimately provided an untrue perception in the level
of retail tariff that greatly affects the consumers, the licensees and power sector
as a whole. In order to remove such distortion in the tariff Commission decides
that in general the benefits from sale of power to person other than the
consumers and licensee of the Commission will be passed on to the consumers /
licensees on actual basis through APR of the concerned year only instead of
tariff order on projection basis.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 5A
West Bengal Electricity Regulatory Commission 125
Sheet – 1/2
Monthly Rate of Inflation in CPI number for Industrial Worker (%) Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Average
2010-11 13.33 13.91 13.73 11.25 9.88 9.82 9.7 8.33 9.47 9.3 8.82 8.82 10.53 2011-12 9.41 8.72 8.62 8.43 8.99 10.06 9.39 9.34 6.49 5.32 7.57 8.65 8.42 2012-13 10.22 10.16 10.05 9.84 10.31 9.14 9.6 9.55 11.17 11.62 12.06 11.44 10.43 2013-14 10.24 10.68 11.06 10.85 10.75 10.7 11.06 11.47 9.13 7.24 6.73 6.70 9.72 2014-15 7.08 7.02 6.49 7.23 6.75 6.3 6.81 Source : Website of Labour Bureau, GOI : Average Value is being Computed
WPI FROM OFFICE OF ECONOMIC ADVISOR , GOI
Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2009-10 125.0 125.9 126.8 128.2 129.6 130.3 131.0 132.9 133.4 135.2 135.2 136.3
2010-11 138.6 139.1 139.8 141.0 141.1 142.0 142.9 143.8 146.0 148.0 148.1 149.5
2011-12 152.1 152.4 153.1 154.2 154.9 156.2 157.0 157.4 157.3 158.7 159.3 161.0
2012-13 163.5 163.9 164.7 165.8 167.3 168.8 168.5 168.8 168.8 170.3 170.9 170.1
2013-14 171.3 171.4 173.2 175.5 179.0 180.7 180.7 181.5 179.6 179.0 179.5 180.3
2014-15 180.8 182.0 183.0 184.6 185.7 185.0
Source : Website of Office of the Economic Advisor, GOI :
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 126
ANNEXURE – 5A Sheet – 2/2
MONTHLY INFLATION RATE COMPUTED BASED ON WPI FROM OFFICE OF ECONOMIC ADVISOR, GOI (%)
Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average
2010-11 10.88 10.48 10.25 9.98 8.87 8.98 9.08 8.20 9.45 9.47 9.54 9.68 9.57
2011-12 9.74 9.56 9.51 9.36 9.78 10.00 9.87 9.46 7.74 7.23 7.56 7.69 8.96
2012-13 7.50 7.55 7.58 7.52 8.01 8.07 7.32 7.24 7.31 7.31 7.28 5.65 7.36
2013-14 4.77 4.58 5.16 5.85 6.99 7.05 7.24 7.52 6.40 5.11 5.03 6.00 5.98
2014-15 5.55 6.18 5.66 5.19 3.74 2.38 4.78
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE – 5B
West Bengal Electricity Regulatory Commission 127
Sheet – 1/6 TABLE-1
ANNUAL ACTUAL FIGURE OF DIFFERENT BUISNESS PARAMETERS OF WBSEDCL DISTRBUTION FUNCTION HAVING IMPACT ON TARIFF
Sl No Particulars Units
Inflat
ionar
y Ba
sis
Sens
itivity
Pa
rame
ter &
de
gree
of
sens
itivity
2009-10 2010-11 2011-12 2012-13 2013-14
(Estimated by
WBSEDCL)
2013-14 (Estimated by
WBERC)
1 Total line-length on 31st March CKM 177041.51 274444.99 314430.72 408417.71 467924.168 467924.1681
2 Total consumers on 31st March number 7622169 8565366 10673192 12093202 12855266 12855266
Increase in line length % 55.017 14.570 29.891 14.570
Increase in consumer % 12.37 24.61 13.30 6.30
3 Repair & Maintenance Expenditure Rs Lakh WPI+CPI DLL 11653.96 14722.55 19324.18 21493.05 25327.36 25327.36 4 - Rent Rs Lakh WPI+CPI DLL 34.39 207.00 762 843.87 985.07 985.07 5 - Auditors Fees Rs Lakh WPI+CPI DLL 102.47 130.06 174.44 161.36 178.02 178.02 6 - Legal Charges Rs Lakh WPI+CPI CSM 218.22 287.80 244 293.38 323.66 323.66
7 - Others Administrative and General Expenses Rs Lakh WPI+CPI CSM 5566.64 6775.43 9878.53 9330.46 10580.28 10580.28
8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh
5921.72 7400.29 11058.97 10629.07 12067.03 12067.03
9 Total O&M Function Expenses (3+8) Rs Lakh 17575.68 22122.84 30383.15 32122.12 37394.39 37394.39
10 Lease Rental Line Rs Lakh WPI DLL 1934.00 692 1666 4724 1829.94
11 Expenses for Complaint Management Mechanism Rs Lakh WPI+CPI CSM 0.00 0.00 296.43 380.00 473.00 385.99
12 Rates & Taxes Rs Lakh WPI+CPI DLL 105.00 1102.00 1385 2488.00 2857.00 1270.00 13 Insurance Rs Lakh WPI+CPI DLL 39.00 390.00 88 370.00 801.00 672.00
14 Line & substation Maintenance (Excluding Man Power) Rs Lakh WPI+CPI DLL 2861 5629 3178 3674 4767.39 3701.51
15 Data Ware-housing Rs Lakh WPI+CPI CSM-L 10 6 9 80 93.36 10.79 16 Back office Job Rs Lakh WPI+CPI DLL 36 10 141 289.14 337.41 289.14 17 Franchisee Cost Rs Lakh CPI CSH 192 157 253 457 533.3 533.30 18 Meter Reading & Bill Distribution Rs Lakh CPI CSH 3536 4071 4530 4735 5525.53 4832.10
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 128
ANNEXURE – 5B Sheet 2/6
Sl No Particulars Units
Inflat
ionar
y Ba
sis
Sens
itivity
Pa
rame
ter &
de
gree
of
sens
itivity
2009-10 2010-11 2011-12 2012-13 2013-14
(Estimated by
WBSEDCL)
2013-14 (As per Audited Accounts)
2013-14 (Estimated by
WBERC)
19 Collection Franchisee Rs Lakh WPI+CPI CSH 80 147 275 1086 1267.31 522 1154.44
20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19) Rs Lakh
6715 10020 8386 10321.14 12524.3 9416 10521.27
21 Manpower for Line & substation Maintenance Rs Lakh CPI DLL 3266 6777 7713.24 8697 7713.24
22 Security Expenses Rs Lakh CPI DLL 1752 1532 2288 3796.73 4430.61 2912 3042.37
23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh CPI CSM 62 148 1342 1552 1811.11 2070 1811.11
24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh CPI CSM 0 0 1838 2018 2354.91 6823 2354.91
25 Total Cost for Outsourcing including Manpower (21+22+23+24) Rs Lakh
1814 1680 8734 14143.73 16309.87 20502 14921.625
26 Total (9+10+11+12+13+20+25) Rs Lakh 26248.68 37248.84 49964.58 61490.99 75083.56 74451.00 66995.21
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 129
ANNEXURE – 5B Sheet 3/6
TABLE-2 PROJECTED ANNUAL ESCALATION RATE COMPUTATION OF DIFFERENT PARAMETERS DURING FOURTH CONTROL PERIOD (2014-15 TO 2016-17)
Sl No Particulars Units
Inflat
ionar
y Bas
is
Sens
itivity
Pa
rame
ter &
de
gree
of
sens
itivity
CAGR (%) between
Aver
age
Inflat
ion
Rate
durin
g the
Co
ncer
ned p
eriod
$
Whe
ther I
nflati
on
rate
is ap
plica
ble
Addit
ional
Gro
wth
Rate
abov
e
inflat
ion ra
te Ra
tio of
Exp
. inc
reas
e &
sens
itivity
pa
rame
ter
incre
ase
Escalation rate (%) for
Remarks
2012
-13 t
o 20
13-1
4
2011
-12 t
o 20
13-1
4
2010
-11 t
o 20
13-1
4
2014
-15
2015
-16
2016
-17
1 Total line-length increase % 14.57 21.90 19.47 14.57 14.57 14.57 2 Total consumers increase % 6.30 9.75 14.50 8.44 8.06 7.81
3 Repair & Maintenance Expenditure Rs Lakh WPI+CPI DLL 17.84 14.485 19.82 8.27 Yes 6.22 0.28 10.17 12.21 12.21
4 - Rent Rs Lakh WPI+CPI DLL 16.73 13.70 68.20 8.27 Yes 5.43 0.25 9.73 11.77 11.77 5 - Auditors Fees Rs Lakh WPI+CPI DLL 10.32 1.02 11.02 8.27 No 1.12 1.12 1.12 6 - Legal Charges Rs Lakh WPI+CPI CSM 10.32 15.17 4.00 8.69 No 4.40 4.40 4.40
7 - Others Administrative and General Expenses Rs Lakh WPI+CPI CSM 13.40 3.50 16.01 8.27 No 3.85 3.85 3.85
8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh
9 Total O&M Function Expenses (3+8) Rs Lakh
10 Lease Rental Line Rs Lakh WPI DLL 9.84 62.61 -1.83 5.98 Yes 3.86 0.26 8.57 10.41 10.41
11 Expenses for Complaint Management Mechanism Rs Lakh WPI+CPI CSM 1.58 14.11 NA 7.48 No 1.73 1.73 1.73
12 Rates & Taxes Rs Lakh WPI+CPI DLL -48.95 -4.23 4.85 8.27 No 5.34 5.34 5.34 13 Insurance Rs Lakh WPI+CPI DLL 81.62 152.42 32.00 8.69 Yes 23.31 1.20 0.00 11.27 11.27
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 130
ANNEXURE – 5B Sheet 4/6
Sl No Particulars Units
Inflat
ionar
y Bas
is
Sens
itivity
Pa
rame
ter &
de
gree
of
sens
itivity
CAGR (%) between
Aver
age
Inflat
ion
Rate
durin
g the
Co
ncer
ned p
eriod
$
Whe
ther I
nflati
on
rate
is ap
plica
ble
Addit
ional
Gro
wth
Rate
abov
e
inflat
ion ra
te Ra
tio of
Exp
. inc
reas
e &
sens
itivity
pa
rame
ter
incre
ase
Escalation rate (%) for
Remarks
2012
-13 t
o 20
13-1
4
2011
-12 t
o 20
13-1
4
2010
-11 t
o 20
13-1
4
2014
-15
2015
-16
2016
-17
14 Line & substation Maintenance (Excluding Man Power) Rs Lakh WPI+CPI DLL 0.75 7.92 -13.04 7.48 No 2.00 2.00 2.00
15 Data Ware-housing Rs Lakh WPI+CPI CSM-L -86.51 9.50 21.60 8.27 Yes 1.23 0.13 7.19 9.18 9.15 16 Back office Job Rs Lakh WPI+CPI DLL 0.00 43.20 207 7.48 No 5.59 7.63 7.63
17 Franchisee Cost Rs Lakh CPI CSH 16.70 45.19 50.32 9.72 Yes 6.98 1.11 15.25 17.21 16.96 Ratio
considered as 1
18 Meter Reading & Bill Distribution Rs Lakh CPI CSH 2.05 3.29 5.88 9.72 No 3.00 4.00 5.00 19 Collection Franchisee Rs Lakh WPI+CPI CSH 6.30 104.89 98.77 7.48 No 6.93 6.93 6.93
20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19)
Rs Lakh
21 Manpower for Line & substation Maintenance Rs Lakh CPI DLL 13.81 53.68 NA 9.72 Yes 4.09 0.28 10.89 13.23 13.23
22 Security Expenses Rs Lakh CPI DLL -19.87 15.32 25.70 9.52 Yes 5.80 0.26 10.60 12.94 12.94
23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh CPI CSM 16.70 16.18 130.44 9.52 Yes 6.66 0.68 11.03 13.18 13.06
R is considered
as 0.5
24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh CPI CSM 16.70 13.18 NA 9.52 Yes 3.66 0.38 10.02 12.21 12.12
Note: $ The concerned period means the period of which CAGR has been considered as escalation rate for future escalation rate calculation.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 131
ANNEXURE – 5B Sheet 5/6
TABLE-3 COMPUTATION OF PROJECTED EXPENSESOF WBSEDCL DISTRBUTION FUNCTION FOR 4TH CONTROL PERIOD (2014-15 TO 2016-17)
Sl No Particulars Units
Projected Expenses for 2014-15 by WBSEDCL
Computed Expenses for
2014-15 by the Commission
Admitted Expenses
for 2014-15
Projected Expenses for 2015-16 by WBSEDCL
Computed Expenses for
2015-16 by the Commission
Admitted Expenses
for 2015-16
Projected Expenses for 2016-17 by WBSEDCL
Computed Expenses for
2016-17 by the Commission
Admitted Expenses
for 2015-16
1 Total line-length on 31st March CKM 536100.72 536100.72 614210.59 614210.59 703701.07 703701.07 2 Total consumers on 31st March number 13940250 13940250 13940250 15064240 15064240 15064240 16240567 16240567 16240567
3 Repair & Maintenance Expenditure Rs Lakh 30288.56 27903 27903 36028.92 31310 31310 42758.06 35133 35133
4 - Rent Rs Lakh 1175.78 1081 1081 1398.62 1208 1208 1659.83 1350 1350 5 - Auditors Fees Rs Lakh 195.98 180 180 215.75 182 182 237.52 184 184 6 - Legal Charges Rs Lakh 356.32 338 338 392.28 353 353 431.86 369 369
7 - Others Administrative and General Expenses Rs Lakh 12138.99 10988 10988 14183.69 11411 11411 16305.84 11850 11850
8 Total Administrative & General Expenses(4+5+6+7) Rs Lakh 13867.07 12587.00 12587.00 16190.34 13154.00 13154.00 18635.05 13753.00 13753.00
9 Total O&M Function Expenses (3+8) Rs Lakh 44155.63 40490.00 40490.00 52219.26 44464.00 44464.00 61393.11 48886.00 48886.00
10 Lease Rental Line 5604.15 2587 2587 6169.61 2856 2856 6792.12 3153 3153
11 Expenses for Complaint Management Mechanism Rs Lakh 564.68 393 393 671.70 400 400 797.15 407 407
12 Rates & Taxes Rs Lakh 3322.70 1338 1338 3878.90 1409 1409 4524.95 1484 1484 13 Insurance Rs Lakh 672.00 672 672 805.00 746 746 966.00 832 832
14 Line & substation Maintenance (Excluding Man Power) Rs Lakh 5691.39 3776 3776 6770.03 3852 3852 8034.47 3929 3929
15 Data Ware-housing Rs Lakh 111.45 12 12 132.57 13 13 157.33 14 14
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 132
ANNEXURE – 5B Sheet 6/6
Sl No Particulars Units
Projected Expenses for 2014-15 by WBSEDCL
Computed Expenses for
2014-15 by the Commission
Admitted Expenses
for 2014-15
Projected Expenses for 2015-16 by WBSEDCL
Computed Expenses for
2015-16 by the Commission
Admitted Expenses
for 2015-16
Projected Expenses for 2016-17 by WBSEDCL
Computed Expenses for
2016-17 by the Commission
Admitted Expenses
for 2015-16
16 Back office Job Rs Lakh 402.81 305 305 479.15 328 328 568.64 353 353 17 Franchisee Cost Rs Lakh 636.66 615 615 757.32 721 721 898.77 843 843
18 Meter Reading & bill distribution Rs Lakh 6596.46 4977 4977 7846.64 5176 5176 9312.16 5435 5435
19 Collection Franchisee Rs Lakh 1512.94 1234 1234 1799.67 1320 1320 2135.80 1411 1411
20 Total Cost for Outsourcing excluding Manpower (14+15+16+17+18+19)
Rs Lakh 14951.71 10919 10919.00 17785.38 11410 11410 21107.17 11985 11985
21 Manpower for Line and substation Maintenance Rs Lakh 9824.49 8553 8553 12086.45 9685 9685 15043.84 10966 10966
22 Security Expenses Rs Lakh 5408.71 3365 3365 6738.26 3800 3800 8296.77 4292 4292
23 Call Center (ZCC/CRC) as per SOP Regulation Rs Lakh 2162.14 2011 2011 2871.91 2276 2276 3708.30 2573 2573
24 Mobile Service (MCSU as per SOP Regulation) Rs Lakh 3050.10 2591 2591 3928.16 2907 2907 5048.33 3259 3259
25 Total Cost for Outsourcing including Manpower (22+23+24+25)
Rs Lakh 20445.44 16520 16520 25624.78 18668 18668 32097.24 21090 21090
26 Total (9+10+11+12+13+20+25) 89716.31 72919.00 72919.00 107154.63 79955.00 79955.00 127677.74 87837.00 87837.00
Tariff Order of WBSEDCL for the year 2014 – 2015
CHAPTER – 6
SUMMARISED STATEMENT OF AGGREGATE REVENUE REQUIREMENT & REVENUE RECOVERABLE THROUGH
TARIFF FOR THE YEAR 2014-15, 2015-16 & 2016-17
West Bengal Electricity Regulatory Commission 133
6.1 Based on the analyses and findings recorded in the foregoing chapters we
are now drawing the statements of Aggregate Revenue Requirement (ARR)
separately for each of the three years of the fourth control period covering the
years 2014-15, 2015-16 and 2016-17. Such statements are given in
Annexure 6A to 6I of this chapter.
6.2 In terms of the Tariff Regulations, we are also to ascertain the amount of
revenue recoverable through tariff for the years 2014-15 after carrying out
adjustments with the ARR for the concerned year of the net recoverable
amount determined in Annual Performance Review (APR) for the years 2012-
13 and any other amount related to release of regulatory asset partially or
fully. Accordingly the adjustments are as follows:
6.2.1 WBSEDCL has asked for adjustments of other amounts of Rs. 65742.00 lakh,
Rs. 76106.00 lakh and Rs. 89330.00 lakh in 2014-15, 2015-16 and 2016-17
respectively on the following accounts:
a) Arrear amount of Rs. 29448.00 lakh each year of 2014 – 2015, 2015 –
2016 and 2016 – 2017 payable by WBSEDCL to WBPDCL in instalments
on accounts of tariff order of new units of WBPDCL and the Commission
admits the same.
b) Arrear amount of Rs. 24504.00 lakh and Rs. 20420.00 lakh are payable
by WBSEDCL to WBPDCL in instalments during the year 2014 – 2015
and 2015 – 2016 respectively on account of arrear FCA for WBPDCL for
2010 – 2011 which the Commission admits.
c) Arrear amount of Rs. 7221.52 lakh, Rs. 29488.69 lakh (Rs. 14443.13 lakh
+ Rs. 15045.56 lakh) and Rs. 30091.13 lakh are payable in instalment for
2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively by WBSEDCL to
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 134
WBPDCL on account of FCA of WBPDCL for the years 2011 – 2012 and
2012 – 2013 in pursuance to order dated 11.12.2014 in cases no. 61/12-
13 and 67/13-14 of the Commission.
6.2.2 WBSEDCL has submitted their regulatory assets release plan in their tariff
application when APR order of 2012 – 2013 was not issued by the
Commission. After issuance of the APR order of WBSEDCL for 2012 – 2013
on 12.06.2014 the regulatory asset still remained unrealsed at the end of
2013 – 2014 are as follows:
a) Balance unreleased regulatory assets against APR order of WBSEDCL
for 2009 – 2010 is Rs. 17061.67 lakh.
b) Balance unreleased regulatory assets against APR order of WBSEDCL
for 2010 – 2011 is Rs. 23977.47 lakh.
c) Total regulatory assets against APR order of WBSEDCL for 2012 – 2013
are Rs. 186188.00 lakh.
d) Balance unreleased regulatory assets against APR order no. OA-63/09-
10 dated 24.09.2009 of WBSEDCL for 2008 – 2009 is Rs. 71703.86 lakh.
The Commission now decides to release all the above regulatory assets
within fourth control period in the following way:
a) The balance regulatory asset of Rs. 17061.67 lakh against APR order of
WBSEDCL for 2009 – 2010 is being allowed to be recovered through tariff
in the tariff order for the year 2014 – 2015.
b) The balance regulatory asset of Rs. 23977.47 lakh against APR order of
WBSEDCL for 2010 – 2011 is being allowed to be recovered through tariff
in the tariff order for the year 2014 – 2015.
c) The regulatory asset of Rs. 186188.00 lakh against APR order of
WBSEDCL for 2012 – 2013 is being allowed to be recovered through tariff
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 135
in the tariff order for the years 2014 – 2015, 2015 – 2016 and 2016 –
2017 by amounts of Rs. 33850.00 lakh, Rs. 20000.00 lakh and Rs.
132338.00 lakh respectively.
d) The balance regulatory asset of Rs. 71703.86 lakh against APR order for
2008 – 2009 in relation to terminal benefit funds is being allowed to be
recovered through tariff in the tariff order for the years 2014 – 2015, 2015
– 2016 and 2016 – 2017 by amounts of Rs. 2553.86 lakh, Rs. 36000.00
lakh and Rs. 33150.00 lakh respectively. Such amount is allocated to
distribution function only.
e) Such release of regulatory asset against above three APR orders of 2009
– 2010, 2010 – 2011 and 2012 – 2013 has been allocated to generation
and distribution functions for each year on the basis of ratio of Aggregate
Revenue Requirement (net fixed charge + variable cost) of generation
and distribution function of the APR of the respective year.
6.2.3 The Commission has also decided to pass on the carrying cost of regulatory
asset at the annual rate of 9.70% as proposed by WBSEDCL against the
APR orders of WBSEDCL for 2009 – 2010, 2010 – 2011 and 2012 – 2013.
However, for regulatory asset against APR order for 2008 – 2009 no carrying
cost is allowed as the actuarial valuation methodology adopted for annual
fund requirement of terminal benefit funds automatically takes care of the
impact of the regulatory asset on this terminal benefit fund as such amount
based on actuarial valuation is a pass through element of tariff subject to
regulatory scrutiny.
6.3 Based on the above, the amount of revenue to be recovered through tariff,
capacity charges and fixed charges for the year 2014 – 2015, is worked out in
the table below. The revenue recoverable through sell of electricity in 2015 –
2016 and 2016 – 2017 to the consumers of WBSEDCL and other licensees in
the State is also shown in this order as total revenue recoverable through
tariff to provide predictability to the stakeholders of minimum revenue to be
recovered in 2015 – 2016 and 2016 – 2017 and also to ensure release of
pending regulatory assets within the fourth control period.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 136
REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2014 – 2015 (Rs. in lakh) Sl. No. Particulars Generation Distribution Total
1 Net Aggregate Revenue Requirement for 2014-15 as per Annexure – 6A 33723.93 1576873.26 1610597.19
2 Part release of regulatory assets created in APR for 2008 – 2009 0.00 2553.86 2553.86
3 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 29448.00 29448.00
4 Payable FCA of WBPDCL for the year 2010 – 11 vide order dated 16.10.2012 0.00 24504.00 24504.00
5 Payable FCA of WBPDCL for the year 2011 12 vide orders dated 04.07.2013 and 11.12.2014 0.00 7221.52 7221.52
6 Adjustment of APR of WBSEDCL for 2009 – 2010 667.20 16394.47 17061.67 7 Adjustment of APR of WBSEDCL 2010 - 2011 1165.60 22811.87 23977.47 8 Adjustment of APR of WBSEDCL 2012 – 2013 603.25 33246.75 33850.00 9 Carrying cost of APR of WBSEDCL 2009 – 2010 0.00 0.00 0.00
10 Carrying cost of APR of WBSEDCL 2010 – 2011 0.00 0.00 0.00 11 Carrying cost of APR of WBSEDCL for 2012 – 2013 263.33 14513.46 14776.79 12 Revenue Recoverable (1 to 11) 36423.31 1727567.19 1763990.50
REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2015 – 2016 (Rs. in lakh) Sl. No. Particulars Generation Distribution Total
1 Net Aggregate Revenue Requirement for 2015-16 as per Annexure – 6A 39852.73 1720208.54 1760061.27
2 Part release of regulatory assets created in APR for 2008 – 2009 0.00 36000.00 36000.00
3 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 29448.00 29448.00
4 Payable FCA of WBPDCL for the year 2010 – 11 vide order dated 16.10.2012 0.00 20420.00 20420.00
5 Payable FCA of WBPDCL for the year 2011 - 12 vide orders dated 04.07.2013 and 11.12.2014 0.00 14443.13 14443.13
6 Payable FCA of WBPDCL for the year 2012 – 2013 vide orders dated 06.06.2014 and 11.12.2014 0.00 15045.56 15045.56
7 Adjustment of APR of WBSEDCL for 2012 – 2013 356.43 19643.57 20000.00 8 Carrying cost of APR of WBSEDCL for 2012 – 2013 228.77 12608.02 12836.79 9 Revenue Recoverable (1 to 8) 40437.93 1867816.82 1908254.75
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 137
REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2016 – 2017 (Rs. in lakh) Sl. No. Particulars Generation Distribution Total
1 Net Aggregate Revenue Requirement for 2016-17 as per Annexure – 6A 43654.95 1883903.24 1927558.19
2 Part release of regulatory assets crated in APR for 2008 – 2009 0.00 33150.00 33150.00
3 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 29448.00 29448.00
4 Payable FCA of WBPDCL for the year 2012 – 2013 vide orders dated 06.06.2014 and 11.12.2014 0.00 30091.13 30091.13
5 Adjustment of APR of WBSEDCL 2012 – 2013 2358.44 129979.56 132338.00 6 Carrying cost of APR of WBSEDCL for 2012 – 2013 0.00 0.00 0.00 7 Revenue Recoverable (1 to 6) 46013.39 2106571.93 2152585.32
6.4 The above revenue recoverable through tariff for the year 2015 – 2016 and
2016 – 2017 may be changed in the tariff of those two years if there is any
subsequent adjustment with net revenue requirement of those two years as
determined in this order as per regulation 2.5.3 of the Tariff Regulations or
release of further regulatory asset.
6.5 To find out the revenue to be recovered from the consumers of WBSEDCL
the income of WBSEDCL from sale of power to CESC Limited, DPSCL, DPL
and Sikkim is to be done first and for that purpose the selling price of power
by WBSEDCL to above licensees are determined first as given below:
6.5.1 WBSEDCL in their tariff application have proposed for two part tariff for the
years 2014 – 2015, 2015 – 2016 and 2016 – 2017 for sale of power to CESC
Limited by WBSEDCL. On the basis of projected peak demand of 620 MW by
CESC Limited for the month of April, 2014 and in consideration of the peak
demand of WBSEDCL established during April 2014, WBSEDCL has
projected the fixed charge of Rs. 4764.00 lakh per month to be recovered by
WBSEDCL from CESC Limited. WBSEDCL has accordingly projected the
fixed charge for the years 2015 – 2016 and 2016 – 2017 at Rs. 2819 lakh per
month and Rs. 3261 lakh per month based on the projected peak demand at
330 MW and 385 MW for April 2015 and April 2016 respectively.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 138
6.5.2 As it has been already discussed that Commission agrees in principle to
accept the WBSEDCL’s proposal of two part tariff thus based on the capacity
charge and energy charge payable by WBSEDCL to different suppliers, the
Commission has determined the two-part tariff for sale of power by
WBSEDCL to CESC Limited in the same principle based on power purchase
cost, different transmission charges and system related charges as has been
done by WBSEDCL in their submitted letter vide no. PTR/SERC/479 dated
25.3.2014 against Commission’s enquiries vide no. WBERC/TP-61/13-
14/1956 dated 18.03.2014 except the consideration of margin which has been
considered by Commission along with the energy charge instead of fixed
charge in line with the trading margin principle. The calculation of two part
tariff for sale of power by WBSEDCL to CESC Limited is given in Annexure –
6D.
6.5.3 Accordingly, for purchase of power by CESC Limited from WBSEDCL, the
Commission admits the fixed charge of Rs. 4314.00 lakh per month from
March 2015 which will be continued for balance part of 2014 – 2015. Prior to
March, 2015, the purchase price of power by CESC Limited from WBSEDCL
will be in single part and at an average rate of 571 paise / kWh which is being
the average rate of current purchase price. In this context this may be clearly
noted that during the period of April 2014 to February, 2015 the power
purchase price will be 571 paise / unit on the basis of the actual energy
drawal and no separate charge will be applicable. The mechanism of two part
tariff will be introduced from March, 2015 as the same is the major structural
change requiring modification of despatch protocol at both seller’s and
purchaser’s end as well as there is requirement of modification in
scheduling and related state energy accounting procedure at SLDC end.
However, for 2015 – 2016 and 2016 – 2017 the purchase price of CESC
Limited from WBSEDCL shall be two part where the capacity charge will be
Rs. 2545.00 lakh per month and Rs. 2885.00 lakh per month respectively
subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this
order. To accommodate the need of the said direction in paragraph 8.14 in
Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be
736.67 paise / kWh and 757.30 paise / kWh respectively. Besides the fixed
charge per month under two part tariff mechanism, CESC has to pay energy
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 139
charge on actual energy drawal every month as per the rate admitted and
shown in Annexure 6E.
The above fixed charges of Rs. 4314.00 lakh / per month, Rs. 2545.00 lakh /
month and Rs. 2885.00 lakh / month in 2014 – 2015, 2015 – 2016 and 2016 –
2017 respectively, are based on agreed annual maximum drawal of 620 MW,
330 MW and 385 MW respectively. In case such above agreed maximum
drawal for any year increases or decreases due to any agreed principle
between CESC Limited and WBSEDCL including that in the terms and
conditions of the PPA as per the direction in paragraph 8.14 of this order,
then the above fixed charges will be accordingly increased or decreased in
proportion to the increase or decrease in maximum agreed drawal.
Accordingly, corresponding single part tariff will also be increased or
decreased. Such change is to be done through agreement between CESC
and WBSEDCL.
6.5.4 In same line of calculation the two part tariff for sale of power by WBSEDCL
to DPSCL are also provided in Annexure – 6F and tariff to be recovered in
two part mechanism are given in Annexure – 6G which will be applicable from
1st March, 2015. From 1st April, 2014 to 28th February, 2015 the selling price
of electricity by WBSEDCL will be in single part and at a current average rate
of 578 paise / kWh (inclusive of MVCA). In this context this may be clearly
noted that during the period of April 2014 to February, 2015 the power
purchase price will be Rs. 578 paise / unit on the basis of the actual energy
drawal and no separate charge will be applicable. The mechanism of two part
tariff will be introduced prospectively from March, 2015 as the same is the
major structural change requiring modification of despatch protocol at both
seller’s and purchaser’s end as well as there is requirement of modification in
scheduling and related state energy accounting procedure at SLDC end. The
fixed charge applicable from March, 2015 for 2014 – 2015 will be Rs. 590.00
lakh per month. However, for 2015 – 2016 and 2016 – 2017 the purchase
price of DPSCL from WBSEDCL shall be two parts where the capacity charge
will be Rs. 656.00 lakh per month and Rs. 636.00 lakh per month respectively
subject to the conditions as laid down in paragraph 8.14 in Chapter 8 of this
order. To accommodate the need of the said direction in paragraph 8.14 in
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 140
Chapter 8, the single part tariff for 2015 – 2016 and 2016 – 2017 will be
575.69 paise / kWh and 554.02 paise / kWh respectively. Besides the fixed
charge per month under two part tariff mechanism, DPSCL has to pay energy
charge on actual energy drawal every month as per the rate admitted and
shown in Annexure 6G.
The above fixed charges of Rs. 590.00 lakh / per month, Rs. 656.00 lakh /
month and Rs. 636.00 lakh / month in 2014 – 2015, 2015 – 2016 and 2016 –
2017 respectively, are based on agreed annual maximum drawal of 85 MW in
each year. In case such above agreed maximum drawal for any year
increases or decreases due to any agreed principle between DPSCL and
WBSEDCL including that in the terms and conditions of the PPA as per the
direction in paragraph 8.14 of this order, then the above fixed charges will be
accordingly increased or decreased in proportion to the increase or decrease
in maximum agreed drawal. Accordingly, corresponding single part tariff will
also be increased or decreased. Such change is to be done through
agreement. In this context it may be noted that DPSCL has not objected the
proposal of WBSEDCL for the said two part tariff.
6.5.5 The price for sale of electricity to Sikkim by WBSEDCL has been admitted as
proposed by WBSEDCL and is 202 paise / kWh for all the years 2014 – 2015,
2015 – 2016 and 2016 – 2017.
6.5.6 The price for sale of electricity to DPL by WBSEDCL has been admitted as
proposed by WBSEDCL and is 563 paise / kWh for 2014 – 2015, 619 paise /
kWh for 2015 – 2016 and 681 paise / kWh for 2016 – 2017.
6.5.7 While determining the price for sale of electricity to CESC Limited, DPL and
DPSCL price determination has not been done by differentiation on the basis
of time for peak, off-peak and normal hours as proposed by WBSEDCL
because in the state power system the tariff determination of different
suppliers are being done by different authority where all such suppliers do not
provide such type of tariff. Thus to ensure level playing ground in application
of merit order despatch principle the Commission has not differentiated tariff
of any supplier in supply side chain of WBSEDCL for sale of power to
WBSEDCL.
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission 141
6.6 Using the above determined price for selling of electricity through bulk supply
by WBSEDCL to different licensees of the State and to Sikkim the projected
revenue income are determined and given in Annexure – 6I.
6.7 The Commission has also worked out the average tariff for the consumers of
WBSEDCL for 2014 – 2015 and the same is shown in the table below:
AVERAGE TARIFF FOR THE CONSUMERS OF WBSEDCL IN 2014 – 2015 Sl. No. Particulars Unit Total
1 Total Revenue to be recovered through tariff Rs. in Lakh 1763990.50
2 Revenue from sale of power to Licensee and Sikkim Rs. in Lakh 137984.00
3 Revenue recoverable from sale of power to the consumers [(3 )= (1)-(2)] Rs. in Lakh 1626006.50
4 Projected quanta of energy for sale to consumers MU 24785.10
5 Average tariff for the consumers for the year 2014 – 2015 [(5)=(Sl.3)x10/(Sl.4)] Paise / kWh 656.04
6.8 On the basis of calculated revenue recoverable for supply of power to the
consumers and average tariff for the consumers for the year 2014 - 2015 as
mentioned in serial number 3 and 5 of above table in paragraph 6.7
respectively, the detail tariff structure for different classes of consumers and
the other terms and conditions related to tariff for the year 2014-15 are
provided in chapter -7 of this order.
6.9 After releasing of the existing regulatory assets and after adjusting a part of
the amount to be recovered due to WBSEDCL’s APR of 2009 – 2010, 2010 –
2011 and 2012 – 2013 through this tariff order the balance amount remaining
as regulatory asset after issuing of this order are as follows:
Sl. No. Heads of regulatory assets Opening balance of
2014 - 2015 Closing balance (Rs. in lakh) at the end of
2014-15 2015-16 2016-17
1 Part release of balance regulatory assets in APR for 2008 – 2009
71703.86 69150.00 33150.00 0.00
2 Adjustment of APR of WBSEDCL for 2009 – 2010 17061.67 0.00 0.00 0.00
3 Adjustment of APR of WBSEDCL 2010 - 2011 23977.47 0.00 0.00 0.00
4 Adjustment of APR of WBSEDCL 2012 – 2013 186188.00 152338.00 132338.00 0.00
5 Total 298931.00 221488.00 165488.00 0.00
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6A
West Bengal Electricity Regulatory Commission 142
AGGREGATE REVENUE REQUIREMENT FOR WBSEDCL
Sl No ITEM ARR FOR 2014 - 2015 (Rs. in lakh)
PROPOSED ADMITTED Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1293519.46 1293519.46 0.00 1282088.50 1282088.50 3 Transmission charges payable to WBSETCL 0.00 112834.87 112834.87 0.00 95537.89 95537.89 4 CTU Charges 0.00 41177.00 41177.00 0.00 41177.00 41177.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00
6 System operation charges payable to POSOCO 0.00 410.00 410.00 0.00 410.00 410.00
7 SLDC charges 0.00 2172.00 2172.00 0.00 2172.00 2172.00
8 Salary & wages including other staff welfare benefits 4175.40 116758.94 120934.34 2849.45 83110.32 85959.77
9 Terminal benefits 1150.55 33558.60 34709.15
10 Cost of Outsourcing excluding manpower and vehicle hiring) 0.00 14951.71 14951.71 0.00 10919.00 10919.00
11 Cost of Outsourcing for manpower and vehicle hiring 0.00 20445.44 20445.44 0.00 16520.00 16520.00
12 Rates & taxes 0.00 3322.70 3322.70 0.00 1388.00 1388.00 13 Operation and Maintenance 4270.75 44155.63 48426.38 4270.75 40490.00 44760.75 14 Complaint Management Mechanism 0.00 564.68 564.68 0.00 393.00 393.00 15 Insurance 0.00 672.00 672.00 0.00 672.00 672.00 16 Depreciation 9087.00 41214.00 50301.00 9087.00 41214.00 50301.00 17 Interest on loan 15473.48 34193.32 49666.80 15473.48 34193.32 49666.80 18 Other finance charges 48.11 680.02 728.13 48.11 680.02 728.13 19 Interest on bond for pension fund 1263.00 11742.00 13005.00 1263.00 11742.00 13005.00
20 Lease Rental Charges for MPLS-VPN service 0.00 5604.15 5604.15 0.00 2587.00 2587.00
21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 823.90 823.90 0.00 823.90 823.90 23 Interest on Consumers' Security Deposit 0.00 7033.64 7033.64 0.00 7034.00 7034.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 34317.74 1826289.46 1860607.20 34142.34 1743961.76 1778104.10 28 Less income from non-tariff sources 0.00 34399.42 34399.42 0.00 34399.42 34399.42 29 Less interest credit 363.00 1646.00 2009.00 418.41 1897.69 2316.10
30 Less: Recovery of expenses attributable for sale of energy to persons other than consumers & licensees
0.00 124444.00 124444.00 0.00 130791.39 130791.39
31 Net aggregate revenue requirement 33954.74 1665800.04 1699754.78 33723.93 1576873.26 1610597.19
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6B
West Bengal Electricity Regulatory Commission 143
AGGREGATE REVENUE REQUIREMENT FOR WBSEDCL
Sl No ITEM
ARR FOR 2015 - 2016 (Rs. in lakh) PROPOSED ADMITTED
Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1421572.96 1421572.96 0.00 1366803.54 1366803.54 3 Transmission charges payable to WBSETCL 0.00 139700.17 139700.17 0.00 113879.69 113879.69 4 CTU Charges 0.00 48054.00 48054.00 0.00 48054.00 48054.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00
6 System operation charges payable to POSOCO 0.00 410.00 410.00 0.00 410.00 410.00
7 SLDC charges 0.00 2388.00 2388.00 0.00 2388.00 2388.00
8 Salary & wages including other staff welfare benefits 4724.04 131920.20 136644.24 3226.11 92343.96 95570.07
9 Terminal benefits 1302.65 37286.99 38589.64
10 Cost of Outsourcing excluding manpower and vehicle hiring) 0.00 17785.38 17785.38 0.00 11410.00 11410.00
11 Cost of Outsourcing for manpower and vehicle hiring 0.00 25624.78 25624.78 0.00 18668.00 18668.00
12 Rates & taxes 0.00 3878.9 3878.90 0.00 1409.00 1409.00 13 Operation and Maintenance 4486.44 52219.26 56705.70 4486.44 44464.00 48950.44 14 Complaint Management Mechanism 0.00 671.07 671.07 0.00 400.00 400.00 15 Insurance 0.00 805.00 805.00 0.00 746.00 746.00 16 Depreciation 10223.00 51148.00 61371.00 10223.00 51148.00 61371.00 17 Interest on loan 19638.46 47210.76 66849.22 19638.46 47210.76 66849.22 18 Other finance charges 50.79 703.19 753.98 50.79 703.19 753.98 19 Interest on bond for pension fund 1462.00 11543.00 13005.00 1462.00 11543.00 13005.00
20 Lease Rental Charges for MPLS-VPN service 0.00 6169.61 6169.61 0.00 2856.00 2856.00
21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 906.26 906.26 0.00 906.26 906.26 23 Interest on Consumers' Security Deposit 0.00 7983.18 7983.18 0.00 7983.00 7983.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 40584.73 2044707.72 2085292.45 40389.45 1897864.60 1938254.05 28 Less income from non-tariff sources 0.00 35306.48 35306.48 0.00 35306.48 35306.48 29 Less interest credit 0.00 3183.44 3183.44 536.72 2685.30 3222.02
30 Less: Recovery of expenses attributable for sale of energy to persons other than consumers & licensees
0.00 137448.00 137448.00 0.00 139664.28 139664.28
31 Net aggregate revenue requirement 40584.73 1868769.80 1909354.53 39852.73 1720208.54 1760061.27
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6C
West Bengal Electricity Regulatory Commission 144
AGGREGATE REVENUE REQUIREMENT FOR WBSEDCL
Sl No ITEM
ARR FOR 2016 – 2017 (Rs. in lakh) PROPOSED ADMITTED
Generation Distribution Total Generation Distribution Total 1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.00 2 Power Purchase Cost 0.00 1589481.46 1589481.46 0.00 1469958.94 1469958.94 3 Transmission charges payable to WBSETCL 0.00 145217.00 145217.00 0.00 117845.19 117845.19 4 CTU Charges 0.00 50963.00 50963.00 0.00 50963.00 50963.00 5 ERPC Charges 0.00 15.00 15.00 0.00 15.00 15.00
6 System operation charges payable to POSOCO 0.00 410.00 410.00 0.00 410.00 410.00
7 SLDC charges 0.00 2619.00 2619.00 0.00 2619.00 2619.00
8 Salary & wages including other staff welfare benefits 5346.88 149130.77 154477.65 3736.00 102518.81 106254.81
9 Terminal benefits 1508.53 41395.43 42903.96
10 Cost of Outsourcing excluding manpower and vehicle hiring) 0.00 21107.17 21107.17 0.00 11985.00 11985.00
11 Cost of Outsourcing for manpower and vehicle hiring 0.00 32097.24 32097.24 0.00 21090.00 21090.00
12 Rrates & taxes 0.00 4524.95 4524.95 0.00 1484.00 1484.00 13 Operation and Maintenance 4707.65 61393.11 66100.76 4707.65 48886.00 53593.65 14 Complaint Management Mechanism 0.00 797.15 797.15 0.00 407.00 407.00 15 Insurance 0.00 966.00 966.00 0.00 832.00 832.00 16 Depreciation 11501.00 57541.00 69042.00 11501.00 57541.00 69042.00 17 Interest on loan 21264.60 55015.31 76279.91 21264.60 55015.31 76279.91 18 Other finance charges 54.75 731.36 786.11 54.75 731.36 786.11 19 Interest on bond for pension fund 1536.00 11469.00 13005.00 1536.00 11469.00 13005.00
20 Lease Rental Charges for MPLS-VPN service 0.00 6792.12 6792.12 0.00 3153.00 3153.00
21 Bad Debts 0.00 0.00 0.00 0.00 0.00 0.00 22 Minimum Alternate Tax 0.00 996.92 996.92 0.00 996.92 996.92 23 Interest on Consumers' Security Deposit 0.00 8845.36 8845.36 0.00 8845.00 8845.00 24 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.00 25 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 26 Return on equity 0.00 73999.00 73999.00 0.00 37236.21 37236.21 27 Gross Aggregate revenue requirement 44410.88 2274111.92 2318522.80 44308.53 2045397.17 2089705.70 28 Less income from non-tariff sources 0.00 37035.86 37035.86 0.00 37035.86 37035.86 29 Less interest credit 0.00 3966.13 3966.13 653.58 3269.94 3923.52
30 Less: Recovery of expenses attributable for sale of energy to persons other than consumers & licensees
0.00 122896.00 122896.00 0.00 121188.13 121188.13
31 Net aggregate revenue requirement 44410.88 2110213.93 2154624.81 43654.95 1883903.24 1927558.19
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6D
West Bengal Electricity Regulatory Commission 145
FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED
Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO charge Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 CESC drawal as considered MW 620.00 330.00 385.00
10 Sharing of CESC (Sl. 9 x 100 ÷ Sl. 8) % 10.23 5.12 5.44
11 Sharing of Annual Fixed cost by CESC (Sl. 7 x Sl. 10 x 0.01) Rs. in lakh 51767.00 30534.00 34613.00
12 Monthly Fixed charge payable by CESC (Sl. 11 ÷ 12) Rs. in lakh 4314.00 2545.00 2885.00
ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO CESC LIMITED Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100
5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19
6 Average energy cost of power by WBSEDCL Paise / unit 242.08 234.05 234.72
7 Energy price at delivery point to CESC Limited with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98
8 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00
9 Energy charge for sale of power by WBSEDCL to CESC (7+8) Paise / unit 260.00 252.00 252.00
Note: For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6E
West Bengal Electricity Regulatory Commission 146
ENERGY PURCHASE RATE OF CESC LIMITED FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017
UNDER TWO PART TARIFF MECHANISM
Item Unit 2014-15 2015-16 2016-17 Agreed annual maximum drawal MW 620 330 385 Monthly fixed charge Rs. lakh / month 4314.00 2545.00 2885.00 Energy charge Paise / kWh 260.00 252.00 252.00
Note:
i) The above fixed charge is subject to condition of change in agreed annual
maximum drawal as mentioned in paragraph 6.5.3 and paragraph 8.14 of
this order.
ii) In any day due to urgent necessity if any short term power is required by
CESC Limited, then CESC Limited can draw power more than the agreed
annual maximum drawal if WBSEDCL agrees and in that case CESC
Limited shall pay increased fixed charge for that day in proportionate to
actual additional drawal for that day. The additional fixed charge payable
for such day only will be as per following formula:
Additional fixed charge payable for a day due to drawal above the agreed
annual maximum drawal =
(Maximum drawal in MW during the day ÷ Agreed Annual Maximum
drawal) x (Monthly fixed charge for the month corresponding to the day
concerned ÷ number of days in that month).
iii) If in any month CESC Limited’s drawal is within the agreed annual
maximum drawal then CESC Limited shall pay the monthly fixed charge
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
147
as per table above. WBSEDCL shall, however, ensure that it makes
power available to CESC Limited at the level of agreed annual maximum
drawal every month.
iv) If in any case WBSEDCL fails to provide electricity on any day as per
requisitioned power within the agreed Annual Maximum drawal then for
that day the payable fixed charge will be proportionately reduced.
v) The above conditions may be changed as per the terms and conditions of
the PPA approved by the Commission in pursuance to the directions in
paragraph 8.14 of this order.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6F
West Bengal Electricity Regulatory Commission 148
FIXED CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL
Sl. No. Particulars Units 2014-15 2015-16 2016-17
1 Power purchase fixed cost Rs. in lakh 364385.55 429015.31 461496.40 2 CTU Charge Rs. in lakh 41177.00 48054.00 50963.00 3 STU charge Rs. in lakh 95537.89 113879.69 117845.19 4 SLDC charge Rs. in lakh 2172.00 2388.00 2619.00 5 POSOCO Rs. in lakh 410.00 410.00 410.00 6 Fixed cost of PPSP Rs. in lakh 2352.63 2627.39 2935.40 7 Total Fixed cost (sum 1 to 6) Rs. in lakh 506035.07 596374.39 636268.99 8 Projected peak system demand of WBSEDCL MW 6061.00 6441.00 7080.00 9 Contractual load of DPSCL MW 100.00 100.00 100.00
10 DPSCL’s drawal as considered in MW by taking Power Factor as MW 85.00 85.00 85.00
11 Sharing of DPSCL load (Sl. 10 x 100 ÷ Sl. 8) % 1.40 1.32 1.20
12 Sharing of Annual Fixed cost by DPSCL (Sl. 7 x Sl. 11 x 0.01) Rs. in lakh 7084.00 7872.00 7635.00
13 Monthly Fixed charge payable by DPSCL (Sl. 12 ÷ 12) Rs. in lakh 590.00 656.00 636.00 ENERGY CHARGE CALCULATION FOR SALE OF ELECTRICITY TO DPSCL
Sl. No. Particulars Units 2014-15 2015-16 2016-17 1 Gross energy input in WBSETCL system MU 38507.856 40629.216 43589.095 2 WBSETCL loss MU 1309.267 1381.393 1482.029 3 CTU loss MU 309.725 356.230 344.071 4 Total loss (2+3) MU 1618.992 1737.623 1826.100 5 Share of total loss to total input energy (Sl. 4 x 100 ÷ Sl. 1) % 4.20 4.28 4.19 6 Average purchase cost of power by WBSEDCL Paise / unit 242.08 234.06 234.72
7 Energy price at WBSEDCL periphery with transmission loss [Sl. 6 ÷ (1-Sl.5x0.01)] Paise / unit 252.69 244.52 244.98
8 Energy price at WBSEDCL periphery with HV loss [Sl.7 ÷ (1-0.08)] Paise / unit 274.66 265.78 266.28
9 Margin as per CERC ceiling for short term procurement Paise / unit 7.00 7.00 7.00 10 Wheel charge (See Annexure – H) Paise / unit 94.12 102.76 103.63
11 Energy charge for sale of power by WBSEDCL to DPSCL (8+9+10) Paise / unit 376.00 376.00 377.00
Note: 1) For Sl. 1 to 3 see Annexure – 4B and for Sl. 6 see Annexure – 4A 2) At sl. No. 8, additional loss of 8% is considered at HV level as per regulation related to Open Access over the transmitting loss.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6G
West Bengal Electricity Regulatory Commission 149
ENERGY PURCHASE RATE OF DPSCL FROM WBSEDCL IN PAISE / KWH FOR 2014 – 2015, 2015 – 2016 AND 2016 – 2017
UNDER TWO PART TARIFF MECHANISM
Item Unit 2014-15 2015-16 2016-17 Agreed annual maximum drawal MW 85.00 85.00 85.00 Monthly fixed charge Rs. lakh / month 590.00 656.00 636.00 Energy charge Paise / kWh 376.00 376.00 377.00
Note:
i) The above fixed charge is subject to condition of change in agreed annual
maximum drawal as mentioned in paragraph 6.5.4 and paragraph 8.14 of
this order.
ii) In any day due to urgent necessity if any short term power is required by
DPSCL, then DPSCL can draw power more than the agreed annual
maximum drawal if WBSEDCL agrees and in that case DPSCL shall pay
increased fixed charge for that day in proportionate to actual additional
drawal for that day. The additional fixed charge payable for such day only
will be as per following formula:
Additional fixed charge payable for a day due to drawal above the agreed
annual maximum drawal =
(Maximum drawal in MW during the day ÷ Agreed Annual Maximum
drawal) x (Monthly fixed charge for the month corresponding to the day
concerned ÷ number of days in that month).
iii) If in any month DPSCL’s drawal is within the agreed annual maximum
drawal then DPSCL shall pay the monthly fixed charge as per table
Tariff Order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
150
above. WBSEDCL shall, however, ensure that it makes power available
to DPSCL at the level of agreed annual maximum drawal every month.
iv) If in any case WBSEDCL fails to provide electricity on any day as per
requisitioned power within the agreed Annual Maximum drawal then for
that day the payable fixed charge will be proportionately reduced.
v) The above conditions may be changed as per the terms and conditions of
the PPA approved by the Commission in pursuance to the directions in
paragraph 8.14 of this order.
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6H
West Bengal Electricity Regulatory Commission 151
WHEELING CHARGE DETERMINATION FOR WBSEDCL Sl. No. Particulars Units 2014 - 2015 2015 - 2016 2016 - 2017
1 Employe cost Rs. in lakh 116668.92 129630.95 143914.242 Cost of outsourcing Rs. in lakh 27439.00 30078.00 33075.003 Operation and Maintenance expenses Rs. in lakh 40490.00 44464.00 48886.004 Rates and taxes Rs. in lakh 1388.00 1409.00 1484.005 Insurance Rs. in lakh 672.00 746.00 832.006 Interest on loan Rs. in lakh 34193.32 47210.76 55015.317 Interest on Bonds for pension fund Rs. in lakh 11742.00 11543.00 11469.008 Other finance charges Rs. in lakh 680.02 703.19 731.36
9 Depreciation (net of depreciation on metering and other asset) Rs. in lakh 35184.00 42651.00 47982.00
10 Taxes under Income Tax Act Rs. in lakh 823.90 906.26 996.9211 Return on Equity Rs. in lakh 37236.21 37236.21 37236.2112 Gross Fixed Charges Rs. in lakh 306517.37 346578.37 381622.04
13 Less: Non Tariff income related to distribution function Rs. in lakh 34399.42 35306.48 37035.86
14
Less Expenses incidental to selling and distribution of energy viz., meter reading & billing, collection franchisee cost, franchisee cost, complaint management mechanism for consumer, lease rental charges, data warehousing, back office job, franchisee cost, call centre cost, MCSU service, etc.
Rs. in lakh 14725.00 15997.00 17448.00
15 Interest credit Rs. in lakh 1897.69 2685.30 3269.94
16Net admissible Fixed Charge related to distribution for power transmission only (12-13-14-15)
Rs. in lakh 255495.26 292589.59 323868.24
A Sale to own consumers MU 24785.10 27232.10 29921.10B Sale to other licensees MU 2010.00 830.00 885.00C Sale to licensee below EHV MU 333.90 394.20 431.30D Energy wheeled MU 15.64 15.64 15.64E Total sale of energy (A+B+C+D) MU 27144.64 28471.94 31253.04F Wheeling charge (16/E) paise / unit 94.12 102.76 103.63
Tariff Order of WBSEDCL for the year 2014 – 2015
ANNEXURE- 6I
West Bengal Electricity Regulatory Commission 152
REVENUE INCOME CALCULATION FROM LICENSEE & SIKKIM
DETAIL CALCULATIONS OF RECOVERABLE AMOUNT FROM LICENSEES AND SIKKIM FOR 2014-15 Licensee Energy in MU Revenue (Rs. in lakh)
Apr’ 14 – Feb’ 15 Mar’ 2015 Apr’ 14 – Feb’ 15 Mar’ 2015 2014-15 CESC* 1778.00 32.00 101523.80 5146.00 106670.00 DPSCL* 295.09 38.81 17056.20 2049.26 19105.00 DPL 200.00 11260.00 11260.00 SIKKIM 47.00 949.40 949.00 *Based on projected energy consumption as submitted with tariff application
AMOUNT RECOVERABLE FROM BULK SUPPLY DURING FOURTH CONTROL PERIOD
ENERGY SALE BY WBSEDCL TO OTHER LICENSEE OF WEST BENGAL AND SIKKIM
Sl. No.
PURCHASER OF POWER
ENERGY SALE IN MU REVENUE IN Rs. LAKH 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
1 SALE TO CESC 1810 630 685 106670.00 46410.00 51875.00 2 SALE TO DPSC 333.90 394.22 431.30 19105.00 22695.00 23895.00 3 SALE TO DPL 200.00 200.00 200.00 11260.00 12380.00 13620.00
4 SALE TO SIKKIM AS PER CONTRACT
47.00 47.00 47.00 949.00 949.00 949.00
5 SALE TO LICENSEE (1+2+3+4)
2390.90 1271.22 1363.30 137984.00 82434.00 90339.00
The above revenue is computed by considering the sale of CESC Limited and DPSCL at
Annexure 6E and 6G respectively. For Sikkim the rate is considered as 202 paise as per
projection. For DPL the rate is considered as 563 paise per unit, 619 paise per unit and
681 per unit for 2014 – 2015, 2015 – 2016 and 2016 – 2017 respectively.
Tariff order of WBSEDCL for the year 2014 – 2015
CHAPTER – 7 TARIFF ORDER FOR 2011-12
West Bengal Electricity Regulatory Commission
153
7.1 As mentioned in the previous chapter, the Commission, in accordance with the
Tariff Regulations, has determined for WBSEDCL the Aggregate Revenue
Requirement (ARR) for each ensuing year of the fourth control period covering
the years 2014-15 to 2016-17 and the revenue recoverable through tariff
during 2014-15, 2015-16 and 2016-17 after all the necessary adjustment as
discussed in chapter 5 and 6.
7.2 WBSEDCL has proposed a tariff structure without taking into cross-subsidy
related objective under guiding factors of tariff determination as specified in
paragraph (vii) of regulation 2.2.1 of the Tariff Regulations. The scrutiny of the
proposed tariff structure reveals that WBSEDCL have in general proposed
increase in tariff for different rates under commercial categories significantly
without any reasoning and justification in favour of not maintaining the above
guideline in spite of the fact that proposed average cost of supply has been
reduced from the existing tariff inclusive of MVCA and as a result the said
objective has been flouted for the class of consumers under commercial
category. For an example the rate of LT commercial consumers of urban area
may be referred. Thus, the Commission has redesigned the tariff structure
based on the following principles:
i) None of the class of consumers based on purpose of supply has been
charged with a tariff in order to see that the average tariff for that class of
consumers remains within 120% of the average cost of supply.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
154
ii) Considering the difference in service quality for rural and urban area as
per Standard of Performance Regulations and in line with the opinion
expressed by the Commission in paragraph 3.3.3 of this tariff order, the
Commission continues to keep separate tariff rate for certain class of
consumers under L&MV class in the tariff order of this year in line with the
past trend. The above separate tariff also helps in to achieve the objective
of the previous point of maintaining average tariff of any class of
consumer at a price so that it does not exceed 120% of the average cost
of supply.
iii) At the same time, the Commission in line with paragraph 8.3 (i) of
National Tariff Policy has reduced the suggested tariff of WBSEDCL
suitably for lifeline consumer.
iv) In order to avoid tariff shock as per paragraph 5.5.3 of National Electricity
Policy, the Commission, to implement the reduction of cross-subsidy
progressively and also to satisfy the objective of paragraph 8.3 (iii) of
National Tariff Policy, as a overall balancing act, has accepted the
proposed increase in tariff of irrigation by WBSEDCL and no further
increase has been done by the Commission though the average tariff for
irrigation supply is below 80% of the average cost of supply.
v) After maintaining the above principles only the Commission has tried to
follow the approach of WBSEDCL in their tariff design on balance class of
consumers other than those as mentioned above to the extent it is felt fit
by the Commission.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
155
vi) Existing rates of B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT have to be
decreased significantly in order to make the average tariff of the class of
consumers under those rates within 120% of the average cost of supply.
Thus, such decrease has been effected by reducing both demand and
energy charges.
Accordingly the tariff schedule applicable to the consumers of WBSEDCL in
2014-15 and the associated terms and conditions are as follows:
Consumers belonging to Lokdeep/Kutirjyoti, Labourline, Life Line consumers,
Domestic (Rural) and Domestic (Urban) category will fall under L&MV
Domestic consumers (below 50KVA). Commercial (Rural), Commercial
(Urban) and consumers covered under A (Cm-II), A (Cm-III), A (Cm-PU) and A
(Cm)-CP will fall under L&MV Commercial consumers (below 50 KVA). Government school will also fall under L&MV public utility consumers.
The tariff schedule as applicable to the consumers of WBSEDCL in the year
2014 – 2015 is given at Annexure – 7A1 for LV and MV consumers under
quarterly billing cycle, at Annexure – 7A2 for LV and MV consumers under
monthly billing cycle and at Annexure – 7A3 for HV and EHV consumers. Two
new rates T(M) and D-ID have been introduced. The Commission has decided
to give certain directives to WBSEDCL on various matters. These are to be
found at Chapter – 8. Except rate B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT,
D-ID and D-IDT, all the rates under L&MV category are applicable for the
supply below 50 KVA. Details of different tariff schemes of different classes of
consumers and various associated terms and conditions are specified in
various regulations and in Annexure – C1 and Annexure – C2 of the Tariff
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
156
Regulations. Other associated conditions of tariff of WBSEDCL for 2014 –
2015 shall be as follows:
7.2.1 Load Factor Rebate/ Surcharge:
7.2.1.1 In order to reduce the overall system T&D loss and to flatten the load curve by
improving the existing system load factor of WBSEDCL, the voltage-wise
graded load factor rebate applicable for the EHV and HV industrial consumers
and L&MV industrial consumer under rate (B-IDI and B-IDIT) will be as per the
following table:
LOAD FACTOR REBATE (Paise / kWh) For the Year 2014-15
Range of Load Factor (LF) Supply Voltage Below 33 kV 33 kV Above 33 kV
Above 55% Up to 60% 1 2 3 Above 60% Up to 65% 7 8 9 Above 65% Up to 70% 14 29 39 Above 70% Up to 75% 20 35 45 Above 75% Up to 80% 25 40 50 Above 80% Up to 85% 30 45 55 Above 85% Up to 90% 35 50 60 Above 90% Up to 92% 40 55 65 Above 92% Up to 95% 45 60 70 Above 95% 50 65 75
The above load factor rebate shall be applicable on total quantum of energy
consumed in the billing period. (For example a 33 kV industrial consumer at
85% load factor shall be eligible for a rebate @ 45 paise / kWh on the total
quantum of energy consumed in the billing period).
7.2.1.2 Industrial consumer whose contract demand is 1.5 MVA or above will get
additional rebate as per following table subject to the condition that payment is
made within the due date.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
157
Additional Load Factor Rebate(paise/kWh) Load Factor 2014-15 Above 65% but upto 80% 20 Above 80% 35
7.2.1.3 Load factor surcharge shall continue at the prevailing rate for those categories
of consumers to whom these are applicable at present and also to L&MV
industrial consumer under rate (B-IDI and B-IDIT).
7.2.1.4 Load factor rebate and load factor surcharge shall be computed in accordance
with the formula and associated principles given in regulations 3.9.2, 3.9.3 and
3.9.4 of the Tariff Regulations and at the rates mentioned in paragraphs
7.2.1.1 to 7.2.1.3 above.
7.2.2 Fixed / Demand Charge:
7.2.2.1 The fixed charge shall be applicable to different categories of consumers at
the rates as shown in Annexure 7A1 and Annexure 7A2 of this tariff order.
7.2.2.2 The demand charge shall be applicable to different categories of consumers
as per rates as shown in Annexure 7A2 and Annexure 7A3 of this order on
the basis of recorded demand as specified in regulation 4.3.3 of the Tariff
Regulations subject to the conditions as specified in the Tariff Regulations.
7.2.2.3 When a new consumer gets connected to the system, the computation of fixed
charge or demand charge for that month shall be made pro-rata for the
number of days of supply in that particular month.
7.2.3 Subject to the condition as specified in regulation 4.13 of the Tariff
Regulations, the minimum charge shall continue at the existing level for all
consumers.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
158
7.2.4 In case of short term supply to Pandals for community religious ceremonies, a
rebate of 30 paise / kWh on energy charge of each unit will be given
prospectively from the date of this order if the entire illumination is done with
LED. Prior to this order, the rebate will be 10 paise / kWh.
7.2.5 For all consumers, excluding consumers having pre-paid meters, rebate shall
be given @ 1% of the amount of the bill excluding meter rent, taxes, duties,
levies and arrears (not being the arrears due to revision of tariff) if the
payment is made within the due date.
7.2.6 A special rebate of 25 paise/kWh for 2014-15 on energy charge shall be given
to the Cold storage or dairy with chilling plant having contractual load between
50 KVA and 125 KVA under C-ID and C-IDT tariff category. This rebate shall
be given before giving effect to rebate mentioned in paragraph 7.2.5.
7.2.7 In order to encourage one time payment for three months bill a special rebate
of 10 paise per unit for 2014-15 on energy charge shall be given to domestic
and commercial consumers under LV and MV categories covered by quarterly
billing cycle under normal or normal-TOD tariff scheme if the payment is made
for the quarter at a time within the due date stipulated for the first month of the
quarter. This rebate shall be in addition to rebate under paragraph 7.2.5 for
normal meter or normal TOD meter and will be given effect after giving effect
to rebate under paragraph 7.2.5.
7.2.8 Un-metered agricultural / irrigation consumers may make monthly payment for
which they shall be entitled to 1% rebate for timely payment within the due
date in line with the consumers of other categories as mentioned in paragraph
7.2.5. In case, however, such agricultural/ irrigation consumers opt for
advance payment of the full annual amount, the consumers shall be allowed a
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
159
rebate of 4% in addition to 1% rebate mentioned in paragraph 7.2.5 and this
additional rebate of 4% shall be given effect after giving effect to rebate under
paragraph 7.2.5.
7.2.9 In addition to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6, 7.2.7 and 7.2.8
above, if the payment is made within due date, then an additional rebate of 1%
of the amount of the bill excluding meter rent, taxes, duties, levies and arrears
(not being arrears due to revision of tariff) would be allowed to the consumers
who would pay their energy bills through e-payment facility (through web by
using net banking, debit card, credit card, electronic clearing scheme). A
rebate of Rs. 5.00 will be admissible prospectively if any consumer opt for e-
bill following regulation 3.1.10 of West Bengal Electricity Regulatory
Commission (Electricity Supply Code) Regulations, 2013. These rebates are
applicable after giving effect under paragraphs 7.2.4 and 7.2.5
7.2.10 Hatchery would be included under rate A (Cm-III) and Cinema Hall will be
treated as commercial consumer.
7.2.11 Power Factor Rebate/ Surcharge:
7.2.11.1 The power factor rebate and surcharge shall continue for those categories of
consumers to whom these are applicable at present and also for L&MV
industrial consumers under rate B-IDI and B-IDIT and under rates T(A), T(B)
and T(M). The rate of rebate and surcharge and the methods of calculation of
such rebate and surcharge for the year 2014-15 are given below:
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
160
7.2.11.2 The rebate and surcharge against different time periods shall be reflected in
the bill separately and shall be treated separately.
7.2.11.3 The above rates of rebate and surcharge against different time period shall be
applicable from the month of March, 2015. The rates of rebate and surcharge
as per tariff order for 2013 – 2014 shall be applicable upto the month of
February, 2015.
7.2.12 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.
Power Factor (PF) Range
Power Factor Rebate & Surcharge on Energy Charge in Percentage for the year 2014-15
For Consumers under TOD Tariff For Consumers under non-TOD
Tariff Normal Period
(6.00 AM to 5.00 PM)
Peak Period (5.00 PM to 11.00
PM)
Off-peak Period (11.00 PM to 6.00
AM) Rebate
in % Surcharge in %
Rebate in %
Surcharge in %
Rebate in %
Surcharge in %
Rebate in %
Surcharge in %
PF > 0.99 7.00 0.00 8.00 0.00 6.00 0.00 5.00 0.00 PF > 0.98 & PF < 0.99 6.00 0.00 7.00 0.00 5.00 0.00 4.00 0.00 PF > 0.97 & PF < 0.98 5.00 0.00 6.00 0.00 4.00 0.00 3.00 0.00 PF > 0.96 & PF < 0.97 4.00 0.00 5.00 0.00 3.00 0.00 2.50 0.00 PF > 0.95 & PF < 0.96 3.00 0.00 4.00 0.00 2.00 0.00 2.00 0.00 PF > 0.94 & PF < 0.95 2.25 0.00 3.00 0.00 1.50 0.00 1.50 0.00 PF > 0.93 & PF < 0.94 1.50 0.00 2.00 0.00 1.00 0.00 1.00 0.00 PF > 0.92 & PF < 0.93 0.75 0.00 1.00 0.00 0.50 0.00 0.50 0.00 PF > 0.86 & PF < 0.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PF > 0.85 & PF < 0.86 0.00 1.00 0.00 1.25 0.00 0.75 0.00 0.75 PF > 0.84 & PF < 0.85 0.00 2.00 0.00 2.50 0.00 1.50 0.00 1.50 PF > 0.83 & PF < 0.84 0.00 2.50 0.00 3.25 0.00 1.75 0.00 1.75 PF > 0.82 & PF < 0.83 0.00 3.00 0.00 4.00 0.00 2.00 0.00 2.00 PF > 0.81 & PF < 0.82 0.00 4.00 0.00 5.00 0.00 3.00 0.00 2.50 PF > 0.80 & PF < 0.81 0.00 5.00 0.00 6.00 0.00 4.00 0.00 3.00 PF <0.80 0.00 6.00 0.00 7.00 0.00 5.00 0.00 3.50
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
161
7.2.13 Delayed payment surcharge shall be applicable as per regulation 4.14 of the
Tariff Regulations.
7.2.14 For irrigation tariff under Rate-C(b), North Bengal stands for the districts of
Coochbehar, Jalpaiguri, Darjeeling, North Dinajpur, South Dinajpur and Malda.
7.2.15 All existing charges relating to meter rent, meter testing, meter replacement,
fuse call charges, disconnection and reconnection etc. shall continue.
7.2.16 A consumer opting for pre-paid meter shall not be required to make any
security deposit for the energy charge.
7.2.17 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.
7.2.18 All the rates and conditions of tariff are effective from 1st
i) tariff as declared under this order for 2014-15, and
April 2014 and
onwards. This rate will continue till further order of the Commission.
Adjustments, if any, for over recovery / under recovery for 2014 – 2015 from
the receipt till February, 2015 shall be made as per paragraph 7.2.19 below.
7.2.19 For 2014-15 the consumer/licensee shall have to pay/shall be refunded the
difference of the following two:
ii) what they actually already paid for the concerned period as tariff and the
MVCA, if any, for the concerned month.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
162
Adjustments, if any, for over recovery / under recovery for 2014-15 from the
energy recipients shall be made in 12 (twelve) equal monthly installments
through subsequent energy bills and such adjustment will start from the
energy bill raised on or after 1st
7.2.23 For any pre-paid and TOD tariff scheme, other charges shall be the charges
applicable to the consumers under respective category of non-TOD tariff.
April, 2015.
7.2.20 There will be no separate monthly variable cost adjustment (MVCA) or Adhoc
FPPCA for WBSEDCL on and from 01.04.2014 till the date of issue of this
order. The MVCA or Adhoc FPPCA realized by WBSEDCL during the year
2014-15 shall be adjusted in computation of any adjustments for over/under
recovery from the energy recipients as mentioned in paragraph 7.2.19 above.
7.2.21 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. Thus,
WBSEDCL shall also realize MVCA for any subsequent period after issuing
date of this order as per provisions of the Tariff Regulations based on the tariff
of this order. The fuel and power purchase cost shall be subject to adjustment
in accordance with the Tariff Regulations through FPPCA.
7.2.22 Optional TOD tariff scheme for LT Commercial, LT Industrial and LT Public
Water Works categories of consumers having minimum contract demand of 30
KVA, which was directed to be introduced in the Tariff Order for 2007-2008,
shall continue and energy charge under such scheme shall be computed
according to regulation 4.12 of the Tariff Regulations, wherever applicable, if
no tariff rates for such consumers are mentioned in the tariff schedule.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
163
7.2.24 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 Commission. The same will be
subject to the following conditions:
a) provision of requisite meter security deposit to be kept with licensee,
b) provision of space for installing weather-proof, safe and secure terminal
services apparatus to protect sophisticated meter; and
c) availability of prepaid-meter of appropriate capacity.
7.2.25 To avail the rate for street lighting with LED (Rate D (2)), the supply should be
metered and all the street lights under the same meter shall be illuminated
with LED. For mixed type of street lights under single meter the rate D(1) shall
be applicable.
7.2.26 For a consumer with prepaid meter who has purchased voucher prior to the
date of issue of this order, the existing voucher will continue till such voucher
is exhausted.
7.2.27 To reduce drawal of load in peak period and to shift the load to off-peak period
for 33 kV and 132 kV industrial consumers having monthly consumption above
1.0 MU a rebate equivalent to the difference of the following two has been
introduced:
i) Demand charge calculated as per regulation 4.3.6 of the Tariff
Regulations; and
ii) Demand charge computed based on the maximum demand of normal
period or maximum demand of peak period or contract demand in
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
164
case of off-peak period or 85% of contract demand whichever is
higher, if those industries keep their maximum demand during off-
peak period within 130% of contract demand.
The above rebate shall be effective prospectively from the month of March,
2015 subject to the condition that payment is made within the due date.
Similarly for the above consumers keeping their maximum demand during off-
peak period within 130% of contract demand, a rebate equivalent to the
difference of the following two has also been introduced:
i) Additional demand charge calculated as per regulation 4.7.2 of Tariff
Regulations; and
ii) Demand charge computed based on the methodology for additional
demand charge for the normal and peak period will be as per
regulation 4.7.2 of Tariff Regulations but there will be no additional
demand charge applicable for off-peak period.
The above rebate shall be effective prospectively from the month of March,
2015 subject to the condition that payment is made within the due date.
7.2.28 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 of WBSEDCL only for those areas of supply of WBSEDCL where
multiple licensees exist. However, in this case if supply is provided 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 under purview of the
Commission.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
165
7.2.29 No other rebate shall be applicable except which are specifically mentioned
under this order or in any regulation(s).
7.2.30 Any matter, which has not been explicitly mentioned in this order, shall be
guided by regulations 2.9.8 and 2.9.9 of the Tariff Regulations subject to
fulfilling condition under paragraph 7.2.28.
7.2.31 As there will be non un-metered connection in case of irrigation from 2015 –
2016, the rates for un-metered connection will be applicable uptill 31.03.2015
and thereafter only the metered connection Rates C(T) will be applicable in
case of irrigation connection till any subsequent tariff order. Accordingly, the
unmetered consumer will be shifted automatically to Rate C(T) unless and
until any such consumer specifically applies for any separate rate which may
otherwise be applicable to him.
7.3 WBSEDCL shall clearly indicate in the consumer/consumer’s bill (a) the
amount payable in terms of the tariff determined by the Commission (b) the
amount of the state government subsidy if any and (c) the net amount payable
as per provisions of the Tariff Regulations.
7.4 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, 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
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
166
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 accordance with
the Tariff Regulations, 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.
7.5 WBSEDCL shall present to the Commission a gist of this order in accordance
with regulation 2.9.6 of the Tariff Regulation 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 terms of aforesaid regulation
within four working days from the date of receipt of the approval of the
Commission.
Tariff Order of WBSEDCL for the year 2014-2015
Annexure-7A1
West Bengal Electricity Regulatory Commission 167
Energy Charge
P/kWh
1. Life Line (Domestic )
Rate A(DM-LL) 337 5
First 102 489Next 78 549Next 120 635Next 300 684Next 300 692
Above 900 859First 102 494Next 78 560Next 120 659Next 300 692Next 300 718
Above 900 859First 180 590Next 120 710Next 150 775Next 450 818
Above 900 867 All units 635 All units 605
First 180 592Next 120 712Next 150 775Next 450 818
Above 900 867 All units 635 All units 605
896
06.00 hrs to 17.00 hrs
Normal
Rate A(CM-R)T20
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs.
735
860Prepaid-
TOD
20 Rate A(Cm-U)T
All units
23.00 hrs to 06.00 hrs.
Normal - TOD All units
All units
20
23.00 hrs to 06.00 hrs.
Rate A(Cm-U)tpp 860
All units 735
896Prepaid -
TOD 17.00 hrs to 23.00 hrs.
06.00 hrs to 17.00 hrs
Fixed Charge/ Demand Charge *
in Rs/KVA/mon
17.00 hrs to 23.00 hrs.
NOT APPLICABLE
Fixed Charge/ Demand Charge *
in Rs/KVA/mon
All units
20
NOT APPLICABLE
Name of the Tariff Scheme
Quarterly consumption in
KWH
06.00 hrs to 17.00 hrs
Energy Charge
P/kWh
All units
Consumer category
2.
5.
NormalRate A(CM-R)
All units
20
747
Sl No
Commercial (Urban)
Normal
Rate A(DM-U) Normal 10
23.00 hrs to 06.00 hrs.
Prepaid All units 613
06.00 hrs to 17.00 hrs
17.00 hrs to 23.00 hrs.
Rate A(Cm-R)tpp
747
20
All units
LOW AND MEDIUM VOLTAGE CONSUMERS
10 NOT APPLICABLE
Optional tariff Scheme
Optional Tariff Scheme - IIOptional Tariff Scheme – I
Prepaid
Quarterly consumption in
KWH
Consumer category
NOT APPLICABLE
10
Energy Charge P/kWh
Rate A(DM-R)PP
Quarterly consumption in KWH
Name of the Tariff
Scheme
10
3.
4.
Fixed Charge / Demand Charge *
in Rs/KVA/monType of Consumer
Applicable Tariff Scheme
0 to 75
Name of the Tariff
Scheme
Normal
Consumer category
Rate A(DM-R)
Commercial (Rural)
Rate A(CM-U)
Domestic (Rural)
Domestic (Urban)
Normal - TOD
Rate A(DM-U)PP
All units 613
Tariff Order of WBSEDCL for the year 2014-2015
Annexure-7A1
West Bengal Electricity Regulatory Commission 168
Energy Charge
P/kWh
Fixed Charge/ Demand Charge *
in Rs/KVA/mon
Fixed Charge/ Demand Charge *
in Rs/KVA/mon
Name of the Tariff Scheme
Quarterly consumption in
KWH
Energy Charge
P/kWh
Consumer categorySl
No
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff Scheme
Optional Tariff Scheme - IIOptional Tariff Scheme – IQuarterly
consumption in KWH
Consumer category
Energy Charge P/kWh
Quarterly consumption in KWH
Name of the Tariff
Scheme
Fixed Charge / Demand Charge *
in Rs/KVA/monType of Consumer
Applicable Tariff Scheme
Name of the Tariff
Scheme
Consumer category
On all units 635
On all units 694
In Municipal Area On all units 594
On all units 635
On all units 694
In Non Municipal Area
On all units 594
8. Government School Rate A(CM-I) 460 20
First 900 746
NOT APPLICABLE
Prepaid
Normal On all Units
54
Rate A(CM-PU) (MUN) PP
Prepaid
All units06.00 hrs to 17.00 hrs
On all Units
746
All units
17.00 hrs to 23.00 hrs. All units
All units
23.00 hrs to 06.00 hrs.
All units
Rate A(CM-II)
PPT12
712 17.00 hrs to 23.00 hrs. All units
Prepaid - TOD
746
569
On all Units
669
12
12
54
731
665
665
54
7.
Rate A(CM-PU)
(NON-MUN)
Rate A(CM-PU)
(MUN)
23.00 hrs to 06.00 hrs
06.00 hrs. – 17.00 hrs. & 20.00 hrs - 23.00 hrs.
06.00 hrs. – 17.00 hrs. & 20.00 hrs - 23.00 hrs.
17.00 hrs to 20.00 hrs.
23.00 hrs to 06.00 hrs
Prepaid - TOD
Prepaid - TOD6.
Public utility/ Specified Institution
Public Bodies
Rate A(CM-PU)
(NON-MUN) PP
Normal 675
NormalRate
A(Cm-PU) (Mun) ppt
Rate A(Cm-PU) (Non-Mun)
ppt54
On all Units 675 54
On all Units
Cottage Industry / Artisan / Weavers / Small production
oriented establishment not
run by electricity as motive power
Rate A(CM-II) Normal
Public utility/ Specified Institution
Public Bodies
NOT APPLICABLE
669
10.
54
12Rate
A(CM-III) PPT
Prepaid - TOD
23.00 hrs to 06.00 hrs.
06.00 hrs to 17.00 hrs
Normal
Poultry, Duckery, Horticulture, Tissue
culture, Floriculture, Herbal – Medicinal – Bio-
diesel Plant Farming, Food
Processing Unit
Rate A(CM-III)
300
Next 300
First
above 600
Above 900
9.
17.00 hrs to 20.00 hrs.
NOT APPLICABLE
626
626
731
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 169
Energy Charge
Energy Charge
P/kWh P/kWh
1. Lokdeep / Kutirjyoti Rate A(DM-K)
Rs. 46 per consumer per
month
2. Labour Line (Domestic )
Rate A(DM-L) 586 10
06.00 hrs to 17.00 hrs
All units 403 All
units 39317.00 hrs to 23.00 hrs.
All units 778 All
units 73523.00 hrs to
06.00 hrsAll
units 261 All units 279
4.
Irrigation pumping for Agriculture (Metered
supply from mixed HV feeder )
Rate C(A) 459 20
Rs 242 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 311 / KVA/ Month (but not less than Rs. 1500.00 per month )Rs 288 / KVA/ Month (but not less than Rs. 1200.00 per month)Rs 391 / KVA/ Month (but not less than Rs. 1800.00 per month)
Sl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Irrigation pumping for Agriculture (Un-
Metered)Normal
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Rate C(T) Normal TOD
All units
Rate C(B)
Submersible in Other District
STW in Other District
Submersible in NB
Normal
Irrigation pumping for Agriculture (Metered)
STW in NB
Normal 0 to 25 NOT APPLICABLE NOT APPLICABLE
Normal All units NOT APPLICABLE
20
5.
3.
NOT APPLICABLE
20
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
Rate C(t)ppt
Prepaid - TOD
06.00 hrs to 17.00 hrs
NOT APPLICABLENOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 170
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
06.00 hrs to
17.00 hrsAll
units 71817.00 hrs to 23.00 hrs.
All units 873
23.00 hrs to 06.00 hrs
All units 679
06.00 hrs to 17.00 hrs
All units 471
17.00 hrs to 23.00 hrs.
All units 849
23.00 hrs to 06.00 hrs
All units 303
06.00 hrs to 17.00 hrs
All units 718
17.00 hrs to 23.00 hrs.
All units 921
23.00 hrs to 06.00 hrs
All units 677
06.00 hrs to 17.00 hrs
All units 728
17.00 hrs to 23.00 hrs.
All units 796
23.00 hrs to 06.00 hrs
All units 685
46 NOT APPLICABLE
Rate C(T) - STIS 20Prepaid- TOD
Rate A(CM)-STCP
Prepaid - TOD
46
NOT APPLICABLEShort Term Irrigation Supply
Rate A(CM) - CP Prepaid- TOD
Short Term supply for Commercial Plantation
Commercial Plantation
7.
8.
6.
Prepaid- TOD
Rate A(ST) NOT APPLICABLE9. Short-term Supply 46 NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 171
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
All Units 662
All Units 993
All Units 457
Next 1500 720 All Units
All Units 435
Next 1500 735 All Units 934
Above 2000 765 All Units 440
13. Street Lighting Rate D(1) 620 54
14. Street Lighting with LED Rate D(2) 436 54
NOT APPLICABLE
23.00 hrs to 06.00 hrs
06.00 hrs to 17.00 hrs
NOT APPLICABLE
NOT APPLICABLE
30
06.00 hrs to 17.00 hrs
659600
610
Above
30
745
All Units
92317.00 hrs to 23.00 hrs30
Normal - TOD
23.00 hrs to 06.00 hrs
17.00 hrs to 23.00 hrs
NOT APPLICABLE
NOT APPLICABLE
Rate B(I-U) t
667
Rate B(I-R) t
Normal - TOD
Normal
Rate B(I-U)
On all Units
First 500
Public Water Works & Sewerage System
NormalRate B(I-R)
First 500
2000
Normal On all Units
Normal
10.
Industry (Urban)
11. Industry (Rural)
12.
Rate B (II) 675On all Units
30
30Normal NOT APPLICABLE30
06.00 hrs. – 17.00 hrs. &
20.00 hrs - 23.00 hrs.
Rate B(II) tpp
Prepaid - TOD 17.00 hrs to
20.00 hrs.
23.00 hrs to 06.00 hrs
All Units
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 172
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
On all Units 660
On all Units 721On all Units 617
06.00 hrs to 17.00 hrs
On all Units 742
17.00 hrs to 23.00 hrs
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
06.00 hrs. – 17.00 hrs. & 20 .00 hrs to
23.00 hrs
On all Units 742
17.00 hrs to 20.00 hrs.
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
NOT APPLICABLE
680On all Units
NOT APPLICABLE
54
23.00 hrs to 06.00 hrs
17.00 hrs to 20.00 hrs
Normal - TOD
06.00 hrs to 17.00 hrs & 20.00 hrs to 23.00 hrs
54
16.
17.
Rate D(5)
Construction Power Supply 46
Prepaid- TOD
Prepaid-TOD
46
Rate D(4)
Rate D(6)
Normal
Emergency Supply
Private Educational Institutions and
Hospitals15.
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLERate D(4) t
Tariff Order of WBSEDCL for the year 2014-2015 Annexure-7A2
West Bengal Electricity Regulatory Commission 173
Energy Charge
Energy Charge
P/kWh P/kWhSl No
Consumer category
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
Fixed Charge/ Demand Charge*
in Rs/KVA/mon
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Energy Charge P/kWh
Optional Tariff Scheme – IMonthly
consumption in KWHName of the Tariff Scheme
Consumer category
Monthly consumption in
KWH
Fixed Charge/ Demand Charge* in Rs/KVA/mon
Name of the Tariff Scheme
Monthly consumption in
KWHType of Consumer
Applicable Tariff Scheme
Consumer category
Name of the Tariff
Scheme
On all Units 649
On all Units 709
On all Units 596
06.00 hrs. – 17.00 hrs. & 20 .00 hrs to
23.00 hrs
On all Units 742
17.00 hrs to 20.00 hrs.
On all Units 903
23.00 hrs to 06.00 hrs
On all Units 702
On all Units 649On all Units 909On all Units 428On all Units 673On all Units 942On all Units 444On all Units 619On all Units 867On all Units 409On all Units 547On all Units 766On all Units 361
3017.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
23. 255
255
06.00 hrs. – 17.00 hrs.
23.00 hrs to 06.00 hrs
22. Domestic consumers
(50 KVA and above but upto 125 KVA)
Rate D- ID Normal All units 638 30 Rate C- IDT Normal TOD
06.00 hrs. – 17.00 hrs.
588All unitsNormal
Other than Industrial ,Commercial and
Domestic consumers (50 KVA and above but
upto 125 KVA)
Rate C- ID
06.00 hrs. – 17.00 hrs.
NOT APPLICABLE
255
Normal TOD
Normal - TOD 54
23.00 hrs to 06.00 hrs
06.00 hrs to 17.00 hrs
17.00 hrs to 23.00 hrs
Rate C- IDT 255Normal TOD
06.00 hrs. – 17.00 hrs.
17.00 hrs to 23.00 hrs.
23.00 hrs to 06.00 hrs
NOT APPLICABLE17.00 hrs to 23.00 hrs.
NOT APPLICABLE
Normal All units 54656
Bulk Supply at single point to Co-operative
Group Housing Society for providing power to its members or person for providing power to its employees in a single
premises
Rate D(7)18.
Note :- * Fixed Charge will be applicable for the Consumer having Contract Demand below 50 KVA and Demand Charge will be applicable for the consumer having Contract Demand of 50 KVA and above.
NOT APPLICABLERate D(7)t
NOT APPLICABLE
21. Commercial consumers (50 KVA and above but
upto 125 KVA)Rate B- IDC Normal
20. Industrial consumers
(50 KVA and above but upto 125 KVA)
Rate B- IDI Normal TOD255 Rate B- IDITNormal
Rate B- IDCT
657
All units 680
All units
46Prepaid - TOD
255
19. Common Services of Industrial Estate Rate D(8)
NOT APPLICABLE
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 174
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
06.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs All Units 895 892 88923.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 45506.00 hrs-17.00 hrs All Units 681 680 67917.00 hrs-23.00 hrs All Units 953 952 95123.00 hrs- 06.00 hrs All Units 450 449 44806.00 hrs-17.00 hrs All Units 653 651 64917.00 hrs-23.00 hrs All Units 934 931 92823.00 hrs- 06.00 hrs All Units 440 439 437
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Industries (11 KV)
Industries (33 KV)
320
Normal - TOD
595 593 591
581
Rate F(bt)
320
Normal - TOD
All Units 583
Rate E(BT)
3
320
2
4
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
320Normal - TOD
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
612 610
Name of the Tariff
Scheme
Rate E(AT)
All Units
Sl No
Type of Consumer
Applicable Tariff Scheme
1 All Units 614Rate E(A) 320NormalPublic Utility (11 KV)
(Rs./ KVA/ month)
667
320603 601
685
665 Normal - TOD 320
579
320
Rate F(AT)Public Utility (33 KV)
All Units
686
605
669
687
All Units
Rate F(B)
Rate E(B) Normal
Rate F(A) Normal
Normal
All Units
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 175
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 645 643 64117.00 hrs-23.00 hrs All Units 921 918 91523.00 hrs- 06.00 hrs All Units 434 432 431
06.00 hrs-17.00 hrs All Units 585 583 58117.00 hrs-23.00 hrs All Units 855 852 84923.00 hrs- 06.00 hrs All Units 400 399 39806.00 hrs-17.00 hrs All Units 565 563 56117.00 hrs-23.00 hrs All Units 827 824 82123.00 hrs- 06.00 hrs All Units 390 389 38806.00 hrs-17.00 hrs All Units 637 635 63617.00 hrs-23.00 hrs All Units 963 960 96223.00 hrs- 06.00 hrs All Units 356 354 35506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461
Industries (400 KV)
NOT APPLICABLE
667All Units
7
Rate H(BT)
29Rate S(GT)
Rate H(B) Normal
320Rate J(BT)
663
Rate S(CPT)9
5 Industries (132 KV)
Commercial Plantation
Normal - TOD
Community Irrigation/ Irrigation
8 Normal - TOD
Industries (220KV) Rate I(BT) Normal -
TOD
Normal - TOD
6 NOT APPLICABLE
320
NOT APPLICABLE
Normal - TOD665
320
NOT APPLICABLE
320
320
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 176
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 677 673 67517.00 hrs-23.00 hrs All Units 1026 1020 102323.00 hrs- 06.00 hrs All Units 376 374 37506.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 976 97323.00 hrs- 06.00 hrs All Units 463 462 461
06.00 hrs-17.00 hrs All Units 652 650 64817.00 hrs-23.00 hrs All Units 978 975 97223.00 hrs- 06.00 hrs All Units 372 370 36806.00 hrs-17.00 hrs All Units 650 649 64817.00 hrs-23.00 hrs All Units 975 974 97223.00 hrs- 06.00 hrs All Units 395 394 393
Rate S(CPT-ST) NOT APPLICABLE
NOT APPLICABLE
668 Normal - TOD
Rate E( CT ) 320
320Normal - TOD661663 320
Short Term Supply for
Commercial Plantation
Rate F(CT)
All UnitsRate F( C ) 665
Short Term Irrigation Supply10
670All Units
11
13 Normal
Commercial (11 KV)
Rate E( C )12
Commercial (33 KV)
320
320
Rate S(GT-ST)
Normal
Normal - TOD
Normal - TOD
29
666
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 177
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 641 639 63717.00 hrs-23.00 hrs All Units 962 960 95823.00 hrs- 06.00 hrs All Units 386 384 38206.00 hrs-17.00 hrs All Units 667 665 66317.00 hrs-23.00 hrs All Units 750 748 74623.00 hrs- 06.00 hrs All Units 612 610 60906.00 hrs-
17.00 hrs &
20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 894 891 88823.00 hrs-06.00 hrs All Units 468 467 46606.00 hrs-
17.00 hrs &&
20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 875 872 86923.00 hrs-06.00 hrs All Units 458 456 454
610
659
Normal - TOD
320Normal - TOD
30
603
657
320
320
612 Rate E(PWT)
Normal - TOD
Rate H(CT)
30
320
Rate S(DT)
Normal - TOD
605Rate F(PW)
All Units 661Rate H(C)
17
688 686690
601
15
Public Water Works &
Sewerage (33 KV)
Normal All Units
All UnitsNormalPublic Water
Works & Sewerage
(11 KV)
All Units
614
14
16 Rate E (PW)
Domestic
Commercial (132 KV)
Normal
Normal
Rate S(D)
583 581 579
All Units
All Units
Rate F(PWT) 320
595 593 591320
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 178
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs All Units 564 563 56217.00 hrs-23.00 hrs All Units 789 788 78623.00 hrs- 06.00 hrs All Units 372 371 370
06.00 hrs-17.00 hrs All Units 697 695 693
17.00 hrs-23.00 hrs All Units 979 976 973
23.00 hrs- 06.00 hrs All Units 463 461 45906.00 hrs-
17.00 hrs & 20.00 hrs.- 23.00 hrs
All Units 697 695 69317.00 hrs-20.00 hrs All Units 979 976 97323.00 hrs-06.00 hrs All Units 463 461 459
NOT APPLICABLE
NOT APPLICABLE320
Sports Complex & Auditorium run by
Govt./ local bodies for
cultural affairs
Rate S(C )
Normal-TOD
Construction Power Supply
Rate S(CON)
Rate S(ES)
Normal-TOD
20
18
Cold storage or Dairies with
Chilling Plant
Rate S(F)19
Normal
320
All Units
581All Units 580Normal
29
320
695 693
579
21
Emergency Supply
696
NOT APPLICABLE
320Normal - TOD
Rate S(ft)
Tariff Order of WBSEDCL for the year 2014 - 2015
Annexure-7A3
West Bengal Electricity Regulatory Commission 179
Demand Charge
Demand Charge
Summer Monsoon Winter Summer Monsoon Winter
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Optional Tariff Scheme
Consumer category
Name of the Tariff
Scheme
Consumption per month in KWH
Energy Charge Energy Charge
Consumption per month in KWH
P/kWhP/kWh
Consumer category
(Rs./ KVA/ month)
Name of the Tariff
Scheme
Sl No
Type of Consumer
Applicable Tariff Scheme
(Rs./ KVA/ month)
06.00 hrs-17.00 hrs
All Units 682 680 67817.00 hrs-23.00 hrs
All Units 751 749 747
23.00 hrs- 06.00 hrs All Units 620 618 616
06.00 hrs-17.00 hrs & 20.00 hrs.- 23.00 hrs
All Units 717 715 713
17.00 hrs-20.00 hrs All Units 1004 1001 99823.00 hrs-06.00 hrs All Units 583 582 581
24 Traction (25 KV) Rate T (A) Normal 691 689 686 320
25 Traction (132 KV) Rate T (B) Normal 669 667 664 320
26 Metro Rail Rate T (M) Normal 693 688 683 8806.00 hrs-17.00 hrs All Units 697 695 69317.00 hrs-23.00 hrs All Units 979 977 97523.00 hrs- 06.00 hrs All Units 463 461 459
06.00 hrs-17.00 hrs All Units 722 720 71817.00 hrs-23.00 hrs All Units 795 793 79123.00 hrs- 06.00 hrs All Units 657 656 655
All Units NOT APPLICABLE
Rate S(ST)
Rate E (ct-ei)
Normal - TOD320734 732 730
All Units
320
All Units 320
NOT APPLICABLE
NOT APPLICABLE
28 Private Educational Institutions
Rate E (C-EI) Normal
27 Short-term Supply Normal - TOD
All Units
Rate S(cot)
320Normal - TOD
Rate S(CO)
23Common Services
of Industrial Estate
Rate E (CT-CS)
22
Bulk Supply at single point to Co-operative Group Housing Society
for providing power to its members or person for
providing power to its employees
in a single premises
Normal 709 705707 29All Units
NOT APPLICABLE
NOT APPLICABLE
29Normal - TOD
Tariff order of WBSEDCL for the year 2014 – 2015
CHAPTER – 8
DIRECTIONS
West Bengal Electricity Regulatory Commission
180
8.1 The Commission has given some direction in different paragraphs in Chapter 4
and Chapter 5 of this order while determining the fixed cost of WBSEDCL.
WBSEDCL shall comply with those directions. WBSEDCL shall also comply with
the following directions:
8.2 In view of the fact that WBSEDCL failed to submit their tariff application complete
in all respect for the fourth control period within the target date of 30th
The Commission has decided that in future any delay in submission of tariff
application by any distribution licensee for any control period beyond the 4
November,
2013 as per provisions of the Tariff Regulations thus for the said period no
carrying cost has been and will be provided for the enhanced part of the tariff
during 2014-15.
th
Further, it is also required to be noted that any delay with or without the approval
of the Commission in submission of either of the applications of APR or FPPCA
of any year (Y) within the target date as specified in the Tariff Regulations of the
following year may result into non-inclusion of the impact of APR and/or FPPCA
order in the concerned tariff order of the year Y+2. In such case, the impact will
be considered in any future year beyond (Y+2) year as applicable without any
control period or any year as applicable will result in not providing any increase in
tariff for equal number of days and thus the under recovery due to such measure
will not be allowed to be passed through any tariff mechanism or during truing up
in Annual Performance Review (APR) or Fuel & Power Purchase Cost
Adjustment (FPPCA). Moreover henceforth any delay in submission in APR or
FPPCA application shall not be considered as ground for delay by the licensee
for submission of tariff application.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
181
allowance for carrying cost, if otherwise applicable. Thus, in filing of
application(s) / petition(s), the licensee is required to maintain the relevant time
schedule(s) as specified in the Tariff Regulations.
It may be further noted that the arrear amount that is to be recovered in a single
or number of installments as will be determined by the Commission for any
financial year due to issuance of delayed tariff order as consequence to delayed
submission of tariff application by the licensee will not be provided with any
carrying cost.
The Commission also observed that during truing up in the APR order of the
distribution licensees and in the Fuel Cost Adjustment (FCA) of the generating
company, a considerable amount is further recoverable by the licensees and the
generating company even after realization of MVCA or MFCA during the year. It
appears that the distribution licensees and the generating company have failed to
understand the true spirit of introduction of the MVCA and MFCA and they are
not considering the eligible cost in computation of their MVCA or MFCA as per
the formula specified in the Tariff Regulations properly. The Commission in terms
of regulation 5.8.12 of the Tariff Regulations directs WBSEDCL to compute their
MVCA taking into consideration the related cost in its true sense keeping in their
mind the true spirit of introduction of such monthly adjustment failing which the
Commission will think not to allow such adjustment in full in future or not to pass
the amount as found recoverable on account of FPPCA during truing up in APR
for WBSEDCL.
8.3 WBSEDCL shall note that as already MVCA has been introduced thus the
amount that be claimed in FPPCA at the end of any year is not expected to be
higher than the summated value of following factors:
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
182
i) impact due to rounding off as per note (f) under the sub- paragraph (e)
of paragraph (A) of Schedule - 7B of the Tariff Regulations against the
applicable MVCA for the month of February and March of that year,
ii) impact due to non-recovery of any additional fuel cost of March of any
year over and above what is recovered on the basis of MVCA as
calculated from data of February due to the fact that MVCA calculated
on the basis of data of March is become applicable for next financial year
only, and
iii) impact due to application of disallowance of cost as per FPPCA formula
at FPPCA determination stage.
Thus in such case if recoverable amount under FPPCA of any year is found to be
higher than the above referred summated value, then such excess amount will
be dealt as per direction already issued by the Commission vide its order in case
no. SM-10/14-15 dated 18.07.2014. In this context it is also to be noted that such
excess amount represent the amount that would have been collected through
MVCA and thus not raising of such bill may result into distorted merit order
dispatch in the system. In fact, by virtue of this type of practice there is high
possibility of vitiating the environment of merit order dispatch in the whole supply
chain in West Bengal power sector and thereby affecting the economic load
dispatch in the systems. As a result ultimate sufferer will be the retail consumers
of West Bengal. In view of the above discussions, no carrying cost will be
allowed by the Commission in case of creation of such excess amount as
regulatory asset through FPPCA. Whenever such excess amount is released in
number of installments then also it will not be entitled to any carrying cost.
However, this direction shall not be construed as an approval of such delayed
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
183
claim of excess fuel cost through FPPCA instead of MVCA and such matter will
be dealt as per direction already issued by the Commission vide its order in case
no. SM-10/14-15 dated 18.07.2014.
8.4 While declaring MVCA for any month henceforth WBSEDCL shall follow the
following directions:
a) Irrespective of change in MVCA in any month from the previous month,
the detailed calculation sheet of MVCA prepared for the purpose of
determination of MVCA for that month as per regulation 5.8.9 of the Tariff
Regulations shall be submitted to the Commission within seven days of
notification of the MVCA or in case of no notification within thirty days
after the end of the month under consideration for MVCA. Such
calculation sheet shall also specifically mention the received fuel bill
which has not been considered or partly considered in the said MVCA in
pursuance to note (g) under sub- paragraph (e) of paragraph A of
Schedule – 7B of the Tariff Regulations. WBSEDCL shall also upload
such calculation sheet in their web-site for each month and shall maintain
the same in the website till publication of the worksheet for the next
month.
b) In continuation of earlier order in case no: WBERC/A-35/2 dated 19-02-
2014 Commission again reiterated that WBSEDCL will publish the
notification of change of MVCA in terms of 4th paragraph of regulation
5.8.9 of Tariff Regulations in such daily newspapers which are widely
circulated in West Bengal. Any deviation in this regard will be seriously
viewed.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
184
8.5 While submitting the Fuel and Power Purchase Cost Adjustment (FPPCA)
application for any year WBSEDCL shall give a list of fuel bill or power purchase
bill which has not been claimed under MVCA calculation along with the
provisions of the Tariff Regulations under which such claim has not been done.
A further reconciliation statement shall be given to establish that WBSEDCL has
followed the direction of paragraphs 8.3 and. 8.4 above effectively.
In case of non submission of the above documents/ information the application of
APR will not be admitted.
8.6 While computing the renewable and cogeneration purchase obligations, the
energy generated from Solar roof-top photovoltaic power plants shall be
considered by any distribution licensee both on consumption side and as input
energy from renewable sources towards fulfillment of renewable and
cogeneration purchase obligations in terms of the Electricity Act, 2003 and the
relevant Regulations. The licensee is required to furnish suitable details in this
respect.
8.7 WBSEDCL shall submit a report within 01.10.2015 on the following issues:
i) Implementation problem in removing minimum 30 KVA load criterion on
eligibility for TOD conversion.
ii) Possibility of shifting of load of drinking water pumping station, drainage
station and other utility services to non-peak hours through TOD and
other Demand Side Management strategy.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
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8.8 In the notes of Financial statement of Annual Accounts of 2014-15 and onward or
through Auditor’s Certificate, the following information is to be provided by
WBSEDCL in a manner as described below:
a) All the expenditure or cost element considered under tariff applications
are to be provided separately for distribution function and generation
function for the regulatory requirement.
b) The penalty, fine and compensation under Electricity Act 2003 shall also
be shown separately for distribution function and generation function.
c) Any fine, penalty or compensation in any other statute other than
Electricity Act 2003 shall be mentioned separately for distribution
function and generation function respectively along with the reference of
the statute.
d) The figure of AT & C loss for the years concerned in line with the
computation methodology as specified in Form 1.8 of the Tariff
Regulations is to be provided. Beside that AT&C loss calculated with
arrear recovery done for the period prior to the year for which the
account is prepared shall also be shown separately.
e) In the notes of the past Annual Accounts, Repair & Maintenance is shown
in three separate heads of distribution & metering, generation and other
heads. In future from Annual Accounts of 2014-15 and onward this ‘other
heads‘ to be specified in terms of specific activities.
In case of non submission of the above documents/ information the application of
APR will not be admitted.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
186
8.9 While submitting APR application of any ensuing year, WBSEDCL shall submit
the certificate from the statutory auditor of the annual accounts of the said year
for the following parameters:
a) Based on fixed asset register the parameters to be submitted are:
i) The distribution line length and transmission line (if any which is
essential part of distribution system as per section 2(72) of
Electricity Act 2003) length in CKM for each level of Voltage
related to the assets of WBSEDCL. For the asset which is not
owned by the WBSEDCL but maintained by WBSEDCL shall be
shown separately.
ii) Similarly the number of transformers and total installed capacity of
transformers in MVA or KVA for each category of transformers for
distribution system are to be provided.
b) For the year concerned under the APR the actual number of Consumers,
the consumption level in MU and total connected load in KVA for each
category of consumers on whom the tariff rate has been issued in the
tariff order of the year corresponding to the APR under consideration.
c) The figure of distribution loss and AT&C loss for the year concerned
under APR as per form 1.7 and 1.8 of the Tariff Regulations. Since such
value has not been given for 2011-12 and 2012-13 thus such value may
be submitted with the APR application of 2013-14.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
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d) List of expenditure arisen on account of penalty, fine and compensation
due to non-compliance of any statute or statutory order along with the
reasons for each such type of penalty, fine and compensation.
e) A statement showing the manpower engaged in different field of activity
which is now outsourced partly or fully vis-à-vis the manpower engaged
from regular establishment against the respective field of activities.
f) Copies of the audited accounts of all the terminal benefit funds for the
year for which APR is under consideration in a complete shape and not
by any selective pages.
g) A statement showing monthly deposition in different terminal funds for the
year for which APR is under consideration in persuasion to the direction
given in paragraph 8.12 below.
h) The detail breakup of number of vehicles that covers all the three shifts of
a customer care centre, number of vehicles that covers only two shifts of
a customer care centre and number of vehicles that covers only one
shift of a customer care centre along with the respective expenditures
for such each category. Also give the number of total number of
Customer care centre and customer care center having Urban areas as
per definition in regulation 2.1(xxv) of SOP Regulations. The above
information shall be submitted in relation to MCSU services. For hiring
vehicle for high voltage services such data shall be submitted separately.
i) A detail breakup showing total expenditure and employee strength
against each level of all categories of employees including the whole
time directors of the board. If any director or employee discharge any
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
188
function of other companies also then the allocation of cost among the
companies shall be shown separately and distinctly against each level.
j) Henceforth with the application of APR, WBSEDCL shall also enclose
their compliance report on Renewable Purchase Obligation of power in
pursuance to clause 8 of the West Bengal Electricity Regulatory
Commission (Cogeneration and Generation of Electricity from
Renewable Sources of Energy) Regulations, 2013 or any of its
subsequent amendment or replacement in future.
In case of non submission of the above documents the application of APR will
not be admitted.
8.10 In case of expenditure at a level higher than the admitted amount under any
uncontrollable factor in this tariff order on account of fixed charges, while
submitting APR application of any ensuing year WBSEDCL has to justify such
higher expenditure in detail with supporting documents and evidence on the
basis of which the Commission will take its decision during truing up exercise and
it may be noted that without sufficient justification the excess expenditure may
not be admitted in the APR fully or partly. Similarly for controllable factors, where
applicable as per the Tariff Regulations, for the same reasons supporting
documents and evidence is to be submitted to justify their claim. While truing up
any uncontrollable factor on account of fixed charges, the actual business
volume parameter (Distribution line length or consumer strength) and actual
inflation rate to which such uncontrollable item is sensitive will be considered in
the same manner and principle as determined under the tariff order subject to the
limitation as per the Tariff Regulations. However, where applicable as per this
tariff order the ratio of expenses increase in % on any item and the sensitivity
parameter increase will remain the same as that of this tariff order.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
189
8.11 While submitting application for APR of 2014-15 and onwards by any licensee, if
such application shows any net claim for that year after considering the
concerned FPPCA, then in such case the licensee shall suggest in specific terms
the ensuing year(s) in which they intend to recover such claim and by what
amount. The Licensee shall also show the consequential impact of such recovery
in the expected average cost of supply in those ensuing years after considering
the total revenue recoverable through the tariff. The total revenue recoverable
through the tariff means the summated amount of the Net Aggregate Revenue
Requirement plus all other amount on account of any release of regulatory asset,
FPPCA and APR of its own and FCA of WBPDCL as applicable for any year
which is being already decided by the Commission in earlier orders. They shall
also mention the carrying cost, if necessary, where it is applicable in terms of the
Tariff Regulations and different orders and direction of the Commission in this
respect. This consequential impact on tariff shall also be provided in the gist of
the APR application.
In case of non submission of the above information the application of APR will
not be admitted.
8.12 The fund released for terminal benefit fund in the ensuing year of 4th
Rs. in lakh
control
period are as follows:
Sl No Particulars 2014-15 2015-16 2016-17 1 Interest on bonds for Terminal Benefits to employees 13005.00 13005.00 13005.00
2 Release of Regulatory Asset for terminal benefit as mentioned in paragraph 6.2(v) of this MYT order
4703.68 36000.00 31000.00
3 Terminal benefits as per MYT order of 4th34785.50 control
period 37629.45 43072.49
Total 52494.18 86634.45 87077.49
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
190
In order to ensure that in future actuarial valuation of terminal benefit fund can be
kept in control in a better way by avoiding carrying cost of such liability in future
the following is to be adhered to:
a) WBSEDCL shall ensure that henceforth at least one-twelfth of the amount
on account of terminal benefit as shown in serial no. 1 of the table above,
as a part of employee cost admitted in the tariff order, is to be deposited
in different terminal benefit funds every month as a first charge item. This
process will also continue beyond 2014 – 2015 till issuance of next tariff
order.
b) It is to be noted that regulatory release of terminal benefit amount under
Sl. No. 2 of above table being a component of arrear amount recoverable
through number of installments, such amount is to be deposited in the
terminal benefit funds prospectively. The amount deposited in terminal
benefit fund from such arrear recovery in each future year shall also be
commensurating with the arrear recovered in that particular year on
monthly basis
c) WBSEDCL shall ensure that henceforth the amount that is statutorily
required to be deposited in a month in different fund on account of
terminal benefit as shown in sl. No. 3 of the table above, as a part of
employee cost admitted in the tariff order, is to be deposited in different
terminal benefit funds every month as a first charge item. This process
will also continue beyond 2014 – 2015 till issuance of next tariff order.
d) On the head of terminal benefit fund, if there is shortage in the deposit
amount in the terminal benefit fund admitted in employee cost through
this order, the balance amount of contribution to terminal benefit fund is
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
191
required to be deposited as first charge item over and above what had
already been deposited for the year 2014-15, from the effective date of
recovery of the recoverable amount against this order from the very first
day. So, it is directed that the balance amount of contribution as
discussed above to terminal benefit fund for the year 2014-15, i.e., the
difference between the amount of contribution to terminal benefit funds as
allowed in this order as a part of employee cost and that has already
been deposited in the fund for the year 2014-15 as is to be deposited in
the respective different terminal benefit funds. Such balance amount is to
be deposited in different terminal benefit funds in not more than 12
monthly equal installments from the date on which the recovery through
tariff against this order will start.
e) While submitting application for APR of 2014 – 2015, 2015-16 and 2016-
17, WBSEDCL shall show through audited accounts of different terminal
benefit funds that the contribution to the different terminal benefit funds
during the concerned year as a part of employee cost is duly deposited in
the terminal benefit funds.
In case of non-deposition of amount admitted for terminal benefit fund as
provided in (a) to (e) above in the respective fund as directed above,
Commission may withhold or deduct same amount equivalent to amount of non-
deposition.
8.13 In this tariff order it is considered that all type of compensation (as shown under
note no 27 of the Annual Accounts 2012-13) is the part of the other administrative & general expenses except Compensation to consumer. Similarly
loss on obsolete stores etc has also been considered as expenditure under Other
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
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Administrative & General Expenses. Separately no such claim should be lodged
by WBSEDCL and compensation to consumers can never be claimed.
8.14 In view of two part tariff suggested by WBSEDCL for sale of power to CESC
Limited/DPSCL, the Commission has introduced two part tariff for purchase of
power by CESC Limited/DPSCL from WBSEDCL with a direction that WBSEDCL
shall enter into revised power purchase/sale agreement with CESC
Limited/DPSCL under regulation 7.3.1 of the Tariff Regulations in replacement of
the existing power purchase agreement. In the said two part tariff one part will be
fixed charge and other part will be energy charge. While two-part tariff structure
as determined under this tariff order is allowed at present from 01.03.2015 for
supply by WBSEDCL, there will be a reversion to single part tariff structure
unless the draft agreement as agreed by both WBSEDCL and CESC
Limited/DPSCL is submitted by CESC Limited/DPSCL to the Commission within
three months of the issue of this order.
The above agreement shall at least cover the following points:
i) The PPA shall mention clearly that the sale of power by WBSEDCL to
CESC Limited/DPSCL is in generation mode or trading mode or any other
mode that is permitted under Electricity Act 2003.
ii) The above PPA shall have an appropriate provision by which CESC
Limited/DPSCL shall give its requisitioned capacity for every year that
may be suitably fixed as terms and conditions of the PPA.
iii) Such agreement shall also have a provision containing the price and
other associated terms and conditions inclusive of tenure of agreement
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
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for drawal of power by CESC Limited/DPSCL over and above the
contracted amount of the month in case of exigencies.
iv) As two part tariff has been introduced for purchase of power by CESC
Limited/DPSCL from WBSEDCL, thus in view of the skewed demand
pattern in CESC Limited’s/DPSCL’s area of supply, CESC
Limited/DPSCL shall try to sell power through trade mechanism under
any agreement (long term, short term or mid-term arrangement) to any
third party to reduce periods of idle capacity in a manner as permitted
under different regulations and Act. To protect the interest of all
stakeholder appropriate coverage of this issue shall be included in the
power purchase agreement as mentioned above and WBSEDCL shall be
obligated to supply energy whenever CESC Limited/DPSCL requisitions
such energy as per contracted capacity. The extent of such obligation
shall be clearly spelt out in the PPA in specific terms without keeping any
scope of interpretation. The agreement shall also provide for appropriate
consequences for failure to do so in a manner as is being safeguarded
under agreement between a generator and a licensee under two part tariff
mechanism.
v) In case WBSEDCL exceeds its renewable and cogeneration purchase
obligations in any year through purchase or otherwise in terms of the
relevant regulations, the agreement shall provide for a suitable
mechanism of transfer of such energy to CESC Limited/DPSCL by
assigning a part of the energy sold to CESC Limited/DPSCL by
WBSEDCL as contribution from non-conventional energy sources. The
Commission has taken this view as most of the renewable and
cogeneration sources being located outside the urban licensed area of
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
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CESC Limited and DPSCL area and thus accessibility of renewable and
co-generation sources to CESC Limited/DPSCL is very limited. It will help
CESC Limited/DPSCL to meet their renewable and cogeneration
purchase obligation as CESC’s license area being an urbanized area and
as DPSCL is with a small licensed area resulting to both having less
potential of renewable and cogeneration sources. For sake of equity in
case of excess renewable and co-generation energy available with CESC
Limited/DPSCL then that can also be sold to WBSEDCL if WBSEDCL
requires so.
vi) The fixed charges payable by CESC Limited during the years 2014 –
2015, 2015 – 2016 and 2016 – 2017 are given in Annexure – 6E as per
this tariff order on the basis of agreed annual maximum drawal of 620
MW, 330 MW and 385 MW respectively for CESC Limited. In case as per
terms and conditions of the proposed PPA such agreed maximum drawal
is increased or decreased for any of the year then the monthly fixed
charge of that year mentioned above will be accordingly increased or
decreased in proportion to the increase or decrease in agreed annual
maximum drawal. Such changed fixed charge is to be incorporated in the
said PPA with reference to this direction and Annexure 6E of this order.
vii) The fixed charges payable by DPSCL during the years 2014 – 2015,
2015 – 2016 and 2016 – 2017 are given in Annexure – 6G as per this
tariff order on the basis of agreed annual maximum drawal of 85 MW
each year for DPSCL. In case, as per terms and conditions of the
proposed PPA such agreed maximum drawal is increased or decreased
for any of the year then the monthly fixed charge of that year mentioned
above will be accordingly increased or decreased in proportion to the
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
195
increase or decrease in agreed annual maximum drawal. Such changed
fixed charge is to be incorporated in the said PPA with reference to this
direction and Annexure 6G of this order.
Before execution of such agreement the draft agreement shall be submitted to
the Commission for scrutiny and approval. The approval will be accorded after
inviting suggestion and objection from the stakeholders and consideration of the
same. Only after getting such approval the agreement shall be executed.
8.15 In past number of distribution projects (such as APDRP, R-APDRP Part A) have
been undertaken where distribution loss reduction was targeted. Commission
directs that WBSEDCL shall prepare a report on such projects about
achievement and the learning from such project after post completion study of
the project. WBSEDCL has to also mention clearly the steps they are
undertaking from the experience of the earlier projects in their new but similar
types of projects such as R-APDRP part B project so that distribution loss
reduction target as envisaged in the project can be achieved. Such report shall
be submitted to the Commission alongwith the APR application for 2014-15 and
on the basis of that Commission will provide directions that in case of failure to
achieve the distribution loss target as envisaged in the project what the penal
measures will be.
8.16 Commission hereby directs that for interruption benefit calculation for HV & EHV
consumer henceforth WBSEDCL shall calculate such benefit on the basis of
interruption recorded in the outgoing feeder meter at the sub-station end.
However, in case of non-supply of electricity due to outages arising out of any
problem at the down-stream of the substation such outage as available from non-
supply of power recorded in the MRI records of the consumer meter shall also be
considered subject to condition that such outage is reported to the WBSEDCL
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
196
and shall be counted for the period from time of reporting and restoration of the
outage by WBSEDCL.
8.17 From fourth control period the expenses on Complaint Management Mechanism,
collective expenses and lease rental expenses will be treated as Controllable
factor.
8.18 Every day by 11.30 a.m. WBSEDCL shall upload its initial drawal schedule as
per the format under Annexure – IV and also initial injection schedule (i.e.,
schedule of Actual Declared Capacity and Notional Declared Capacity including
the drawal schedule of Purulia Pumped Storage Project) in accordance with the
prevailing State Grid Code framed by WBERC for the next day in their website. If
necessary, for proper representation of the schedule in the website the format
can be altered with approval of the Commission. This schedule shall be kept in
the website till two months after the date of the order of the APR or FPPCA
whichever is later in relation to the year concerned to the day under discussion.
The website design shall be such so that the schedule of any date can be easily
fetched. This facility is to be made operational from 1st of April, 2015. WBSEDCL
is also directed to upload such schedule of every day from 1st April, 2014 to 31st
March, 2015 within 1st June 2015. This direction has been issued for sake of
transparency and to protect the interest of all the stakeholders in large
8.19 The Commission is statutorily duty bound to promote generation of electricity
from following sources of energy:
i) Co-generation of electricity from renewable sources.
ii) Co-generation of electricity from fossil fuel sources.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
197
iii) Co-generation of electricity from hybrid sources of fossil fuel /
conventional sources and renewable sources.
iv) Electricity generation from renewable sources.
In order to promote above mentioned type of generation of electricity by applying
regulations 8.3 and 8.4 of the Tariff Regulations and regulations 19.1 and 19.2 of
the West Bengal Electricity Regulatory Commission (Cogeneration and
Generation of Electricity from Renewable Sources of Energy) Regulations, 2013,
the Commission decides that from the APR of the ensuing year 2016 – 2017 a
deduction of 5% from Return on Equity will be done if WBSEDCL fails to comply
with the Renewable Purchase Obligation as per West Bengal Electricity
Regulatory Commission (Cogeneration and Generation of Electricity from
Renewable Sources of Energy) Regulations, 2013 or any of its subsequent
amendment. In this context, the Commission also directs that henceforth
WBSEDCL shall advertise on important national media inviting the interested
parties of supplying renewable and cogeneration electricity on every four months
for next two years instead of one time in a year in pursuance to the regulation 3.5
of the said Regulations.
8.20 Henceforth, any application for Power Purchase Agreement (PPA), except for
short term PPA meaning PPA for a period not exceeding one year, submitted by
any licensee to the Commission for approval of the PPA shall go through the
process of inviting suggestions and objections from all stakeholders through at
least three widely circulated newspaper publication for consideration of the
Commission of all such suggestions and objections as a process of the approval
procedure and subsequent to such approval only, the PPA can be executed by
the licensee and the seller of the power. For this purpose, while submitting the
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
198
said PPA the licensee shall also give a draft gist for newspaper publication for
approval of the Commission. On getting approval of the Commission such gist
shall be published in the newspapers within 5 working days. Such gist shall also
be posted in the website along with the application and PPA from the date of gist
publication to at least the last date of submission of suggestions and objections
as will be mentioned in the gist. The gist shall cover the name of seller of the
power, type of specific source (such as coal, gas, hydro, solar, etc.), major
important parameters that are required under the Tariff Regulations for such
purchase and the important points of the purpose of such procurement. The
application submitted shall have the above points of the gist along with detailed
justification of such proposed procurement along with all the information and
parameters that are required under the Tariff Regulations or Regulations of the
Commission related to renewable and cogeneration sources of energy. The
application shall also clearly spell that how the interest of the consumer as well
as of the licensee has been safeguarded in the PPA. The application without
such gist and the points as mentioned shall not be admitted. This process is
done in order to meet the end of justice after keeping consistency with the
Electricity Act, 2003.
8.21 While submitting application of APR WBSEDCL shall also submit a detailed
calculation showing that revenue collected against the supply of electricity to
consumers at a rate below the tariff of this order in pursuance to the application
of paragraph 7.2.27 and concerned clauses of Tariff Regulations satisfying the
condition that the consumers covered by application of such paragraph through
the notification dated 23.09.2014 published by WBSEDCL have been supplied
electricity at a price not below the cost of supply to them and revenue recovered
from them is commensurating with such price as well as their consumption.
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
199
WBSEDCL has also to establish that no loss on this head has been passed to
other consumers through the ARR determination process in the APR.
8.22 The cost of meter reading and billing paid to New Town shall be on transaction
basis. Accordingly, the agreement between WBSEDCL and its franchise shall be
amended.
8.23 As UI charge has been repealed and deviation charge is being introduced, the
Commission by applying regulation 8.3 of this Tariff Regulations will consider
N_UI_R as zero for applying the regulation 2.6.10 of the Tariff Regulations during
APR order for any ensuing year of the fourth control period.
8.24 The anomalies as mentioned in paragraph 3.7.2 shall be corrected and
accordingly the related information in requisite formats of Tariff Regulations shall
be submitted after considering the changes in actual consumption mix atleast
upto 2014 – 2015 in pursuance to paragraph (xi) of regulation 2.5.3 of the Tariff
Regulations along with APR for 2014 – 2015.
8.25 All the distribution licensees and generating companies shall follow regulation
5.6.5.1 of the Tariff Regulations in its true spirit. According to regulation 5.6.5.1 of
the Tariff Regulations the interest on working capital requirement of a generating
company or a licensee shall be assessed on normative basis @ 18% on a base
amount derived by summation of annual fixed charges, fuel cost and power
purchase cost reduced by certain elements of the ARR. It has also been
mentioned there that where Monthly Fuel Cost Adjustment (MFCA) or Monthly
Variable Cost Adjustment (MVCA) exists, in that case for interest on working
capital requirement the above normative basis shall be 10% instead of 18% on
the said base amount. In this context it may be noted by all stakeholders that any
distribution licensee or generating company on which collection of MFCA and
Tariff order of WBSEDCL for the year 2014 – 2015
West Bengal Electricity Regulatory Commission
200
MVCA, as the case may be, is applicable as per Tariff Regulations, shall not be
entitled to claim interest on the above referred normative basis of 18% even on
the plea of not claiming MFCA or MVCA throughout any financial year.
Sd/- SUJIT DASGUPTA
MEMBER
DATE: 04.03.2015