BIHAR STATE ELECTRICITY BOARD

Transcription

1 BEFORE THE BIHAR ELECTRICITY REGULATORY COMMISSION PATNA CASE NO: Filing of the Review Petition for FY and Aggregate Revenue from Charges or Aggregate Revenue Requirement (ARR) & Tariff Petition for FY under BERC (Terms and Conditions for determination of Tariff) Regulations, 2007 along with other guidelines and directions issued by the BERC from time to time AND under Section 45, 46, 47, 61, 62, 64 and 86 of the Electricity Act, 2003 read with the relevant Guidelines. VOLUME - I Filed by:- BIHAR STATE ELECTRICITY BOARD Corp. Office: Vidyut Bhavan, Jawaharlal Nehru Marg, Patna E B N

2 Review Petition for FY and ARR & Tariff Petition for FY THIS SPACE IS INTENTIONALLY LEFT BLANK BIHAR STATE ELECTRICITY BOARD 2

3 Review Petition for FY and ARR & Tariff Petition for FY Before The Bihar Electricity Regulatory Commission Patna IN THE MATTER OF: Filing of the Review Petition for FY , Petition for Aggregate Revenue from Charges or Aggregate Revenue Requirement (ARR) & Tariff Petition for FY under BERC (Terms and Conditions for determination of Tariff) Regulations, 2007 along with other guidelines and directions issued by the BERC from time to time AND under Section 45, 46, 47, 61, 62, 64 and 86 of the Electricity Act, 2003 read with the relevant Guidelines. AND IN THE MATTER OF: Bihar State Electricity Board (hereinafter referred to as B EB T B this petition the State Transmission Utility and the Distribution Licensee Applicant. The applicant respectfully submits as hereunder:- 1.1 This application has been prepared in accordance with Sections 61, 62 of the Electricity Act 2003 and has taken into consideration the regulations BERC (Terms and Conditions for Determination of Tariff) Regulations This petition includes the Review of Aggregate Revenue Requirement for FY , Aggregate Revenue from Charges or Aggregate Revenue Requirement for FY and tariff proposed for various consumer categories for FY BIHAR STATE ELECTRICITY BOARD 2

4 Review Petition for FY and ARR & Tariff Petition for FY In this petition, BSEB has responded to the direct H B Electricity Regulatory Commission in the Tariff Orders issued for the years FY , FY , FY and FY BSEB is a deemed Distribution Licensee along with responsibility for generation and transmission. BSEB continues to work as integrated utility and till date there is no function wise accounting separation. The revenue and cost information of Generation, Transmission and Distribution functions continues to be bundled. For the purpose of ARR and tariff determination details related to sales, power purchase, revenue and cost are required. Formats as provided in annexure D are most suited to capture this information, as other formats would either capture information related to generation or transmission. Further BSEB is not in a position to provide separate cost data for its generation and transmission function for reasons stated above. BSEB has not filed information separately in formats as provided in annexures A and C of the tariff regulations as the desired operational data related to generation and transmission functions are getting captured in formats D. 1.5 BSEB along with this petition is submitting the statutory formats with additional/supplementary data & information available and would make available H C to the extent available with BSEB. Prayers to the Commission 1.6 BSEB H C (a) Examine the proposal submitted by BSEB for a favorable dispensation as detailed in this petition. (b) Consider the submissions and allow the Review of Aggregate Revenue Requirement for FY , Aggregate Revenue Requirement for FY and Tariff Proposal for FY as submitted by BSEB. BIHAR STATE ELECTRICITY BOARD 3

5 Review Petition for FY and ARR & Tariff Petition for FY (c) Pass suitable orders with respect to the proposed ARR for BSEB as a whole as well for Generation, Transmission and Distribution functions separately as proposed in this petition. (d) Accept Petitioner R G the State Government. (e) Pass suitable orders for implementation of the tariff proposals for the FY for making it applicable from April 1, 2012 & onwards. (f) Consider utilization of the Resource Gap funding as per priorities set by Energy Department of the Government of Bihar vide letter no dated 19/09/11 which is provided in Annexure -II. (g) Approve the terms and conditions of tariffs and various other matters as proposed in this petition and the proposed changes therein. (h) A P recovery of revenue gap arising out of True-up Petitions for FY , FY , FY & FY and Review Petition for FY along with its carrying cost. (i) Suggest recovery of revenue gap that arises from Tariff Petition of FY (j) To recognize the revenue gap between aggregate revenue requirement and total rev R A recovered through tariffs within 3 years as provided in Clause no. 24 of BERC (Terms and Conditions for Determination of Tariff) Regulation (k) Condone any inadvertent omissions/errors/shortcomings and permit BSEB to add/change/modify/alter this filing and make further submissions as may be required at a future date. BIHAR STATE ELECTRICITY BOARD 4

6 Review Petition for FY and ARR & Tariff Petition for FY (l) Pass any other H C appropriate under the circumstances of the case and in the interest of justice. Bihar State Electricity Board Patna Dated: BIHAR STATE ELECTRICITY BOARD 5

7 Review Petition for FY and ARR & Tariff Petition for FY Table of Contents 1. Introduction Preamble Procedural History Current Petition Contents of the petition Prayers to the Commission Aggregate Revenue Requirement & Revenue Gap Preamble Review of Aggregate Revenue Requirement for FY Aggregate Revenue Requirement & Tariff Proposal for FY Projection of Energy Requirement Loss trajectory Sale from Additional Power Availability Sale from Nepal & UI Own Generation Power Purchase from other sources Overall power Available Energy Requirement & Energy Balance Additional Power Purchase Expenses Operation & Maintenance Expenses (O&M) Repair & Maintenance Expenses (R&M) Employee Expenses Administration & General Expenses (A&G) Total Operation & Maintenance Cost Capital Expenditure Plan of BSEB Interest & Finance charges BIHAR STATE ELECTRICITY BOARD 6

8 Review Petition for FY and ARR & Tariff Petition for FY Depreciation Interest on Working Capital Return on Equity Non-Tariff Income Past Recoveries Aggregate Revenue Requirement Revenue from Sale of Power at Existing Tariff for FY Revenue from sale to Nepal & UI Revenue from sale of Additional Power Resource Gap funding from State Government Revenue Gap at Existing Tariff for FY Revenue from Sale of Power at Proposed Tariff for FY Revenue Gap at Proposed Tariff Regulatory Asset Tariff Proposal Tariff Design Creation of new tariff category Creation of new sub-categories within existing tariff categories Changes in existing terms and conditions of tariff Tariff Schedule PART - A: LOW TENSION SUPPLY TERMS AND CONDITIONS OF LOW TENSION TARIFF PART - B: HIGH TENSION SUPPLY TERMS AND CONDITIONS OF HT TARIFF PART - C: MISCELLANEOUS AND GENERAL CHARGES R D H C Directive given in the Tariff Order for FY Directives given in the Tariff Order for FY Directive given in the Tariff Order for FY Annexure 1 Work Order copy of Metering & Billing BIHAR STATE ELECTRICITY BOARD 7

9 Review Petition for FY and ARR & Tariff Petition for FY Annexure 2 Letter from Energy Department regarding Priorities for Utilisation of Resource Gap Funding Annexure 3 Circle-wise P&L Account for FY Tables Table 1 : Historical Trend in Category-wise Units sold Table 2 : Category-wise Growth rates of Units Sold Table 3 : Category-wise No. of Consumers Table 4 : Growth rate of no. of Consumers Table 5 : Category-wise Connected Load Table 6 : Growth Rate for Connected Load Table 7 : Projection of Sales, No. of Consumers and Connected Load for Bihar Table 8 : Projection of Sales, No. of Consumers and Connected Load for Premium Tariff Areas Table 9 : Projection of Sales, No. of Consumers and Connected Load for Rest of Bihar Table 10 : T&D Losses of BSEB for previous years Table 11 : Projection of T&D Losses Table 12 : Current Status of different units of BTPS Table 13 : Variable Cost of Own Generation Table 14 : Allocation from Long-term Sources Table 15 : Power Purchase from Long-term Sources Table 16 : Per Unit Cost of Power Purchase Sources Table 17 : Energy, per unit cost & total cost of Power Purchase Table 18 : Total Power Purchase Table 19 : Energy Requirement & Energy Balance Table 20 : R&M Expenses Table 21: Function-wise R&M Expenses Table 22: Employee Expenses BIHAR STATE ELECTRICITY BOARD 8

10 Review Petition for FY and ARR & Tariff Petition for FY Table 23: Function-wise Employee Expenses Table 24: A&G Expenses Table 25: Function-wise A&G Expenses Table 26: O&M Expenses Table 27: Planned Capital Expenditure of BSEB Table 28: Function wise summary of Planned Capital Expenditure of BSEB Table 29: Details of Capitalization Table 30: Closing Capital Work In Progress Table 31: Loan Portfolio of Capital Expenditure of FY Table 32 : Interest & Financial Charges Table 33: Depreciation charges Table 34 : Methodology for calculation of Working Capital Table 35 : Interest on Working Capital Table 36 : Return on Equity Table 37 : Non-Tariff Income Table 38 : Past Recoveries of BSEB Table 39 : Aggregate Revenue Requirement for BSEB for FY & FY Table 40 : Function-wise Aggregate Revenue Requirement for FY Table 41 : Revenue from sale of power at Existing Tariff Table 42 : Estimated Revenue Gap for FY at Existing Tariff Table 43 : Revenue from sale of power at Proposed Tariff Table 44 : Estimated Revenue Gap for FY at Proposed Tariff BIHAR STATE ELECTRICITY BOARD 9

11 Review Petition for FY and ARR & Tariff Petition for FY Introduction 1.1. Preamble B E B B B EB 1 st April 1958 under Section 5 of the Electricity (Supply) Act, 1948 and has been engaged in electricity generation, transmission, distribution and related activities in the State of Bihar Presently, the Board is performing the role of two licensed entities i.e. State Transmission Utility (STU) and a Distribution Licensee. This Aggregate Revenue Requirement & Tariff petition is being submitted by the State Transmission Utility and the Distribution Licensee In exercise of the power conferred by the proviso of 172(a) of the Electricity Act, 2003, the Govt. of Bihar has allowed BSEB to continue to function as State Transmission Utility and a Licensee for Distribution of Power Procedural History BSEB had submitted its first ARR and tariff petition for the FY on 10th A T Hle Commission passed the tariff order on this petition on 29 th November, BSEB submitted its second ARR and tariff petition for FY along with review for FY on 14th February, The tariff order for this petition was passed by the H C th August, BSEB had also filed its tariff petition for the financial year on for determination of ARR and approval of retail tariff proposal. However, after H Cssion directed BSEB to re-file the tariff petition for the financial year BIHAR STATE ELECTRICITY BOARD 10

12 Review Petition for FY and ARR & Tariff Petition for FY BSEB then submitted its ARR and tariff petition for FY before the H Commission on BSEB also provided information on the responses to various objections/suggestions regarding the petition sought H Commission. The H Commission passed the tariff order for FY on 6 th December, BSEB then submitted its ARR and tariff petition for FY before the H Commission on BSEB also provided information on the responses to various objections/suggestions regarding the petition H Commission. The H Commission passed the tariff order for FY on 1 st June, BSEB then submitted its true-up petition for FY , FY & FY before the H Commission on BSEB also submitted True-up petition for FY & Review petition for FY H Commission on Current Petition Section 62 of the Electricity Act 2003 requires the licensee to furnish details as may be specified by the Commission for determination of tariff. In addition, as per the H C B EB petition for all reasonable expenses which it believes it would incur over the next financial year H C T done based on the projections of the expected revenue and costs. In compliance of this regulatory obligation, BSEB hereby files its tariff petition for the FY for H C BSEB hereby also files Review Petition for FY in line with BERC (Terms & Conditions for Determination of Tariff) Regulations, BIHAR STATE ELECTRICITY BOARD 11

13 Review Petition for FY and ARR & Tariff Petition for FY The current petition has been prepared in accordance with the provisions of the following Acts/Policies/Regulations: a. Electricity Act 2003; b. National Electricity Policy; c. National Tariff Policy; d. Bihar State Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2007; BSEB has made genuine efforts for compiling all relevant information relating to the Tariff H C and has also made H Commission is accurate and free from material errors. However, there may be certain deficiencies owing to the limitations of the management information systems of BSEB. Hence, BSEB prays to th H C information provided be accepted for the current filing and at the same time BSEB assures that it is taking appropriate measures to improve its management information system Contents of the petition This petition comprises of main section namely: Review Petition for FY Tariff Petition for FY Main section includes following subsections: Metered & Unmetered Sales T&D Losses Generation from Own Sources & Power Purchase from various sources to meet the Energy Requirement BIHAR STATE ELECTRICITY BOARD 12

14 Review Petition for FY and ARR & Tariff Petition for FY Energy Balance Operational Expenditure Capital Expenditure Plan Determination of the Aggregate Revenue Requirement comprising of power purchase cost, operating cost, depreciation, interest cost, return on equity etc. Revenue projection from existing tariff and various other sources of income Determination of gap between ARR determined and Revenue at existing tariff Tariff proposal Schedule of general and miscellaneous charges Fuel and Power Purchase Cost Adjustment Formula Status of compliance of directives 1.5. Prayers to the Commission BSEB H C (a) Examine the proposal submitted by BSEB for a favorable dispensation as detailed in this petition. (b) Consider the submissions and allow the Review of Aggregate Revenue Requirement for FY , Aggregate Revenue Requirement for FY and Tariff Proposal for FY as submitted by BSEB. (c) Pass suitable orders with respect to the proposed ARR for BSEB as a whole as well for Generation, Transmission and Distribution functions separately as proposed in this petition. (d) Accept Petitioner s prayer for allowing Return on Grant provided by the State Government. (e) Pass suitable orders for implementation of the tariff proposals for the FY for making it applicable from April 1, 2012 & onwards. BIHAR STATE ELECTRICITY BOARD 13

15 Review Petition for FY and ARR & Tariff Petition for FY (f) Consider utilization of the Resource Gap funding as per priorities set by Energy Department of the Government of Bihar vide letter no dated 19/09/11 which is provided in Annexure -II. (g) Approve the terms and conditions of tariffs and various other matters as proposed in this petition and the proposed changes therein. (h) A P True-up Petitions for FY , FY , FY & FY and Review Petition for FY along with its carrying cost. (i) Suggest recovery of revenue gap that arises from Tariff Petition of FY (j) To recognize the revenue gap between aggregate revenue requirement and R A recovered through tariffs within 3 years as provided in clause no. 24 of BERC (Terms and Conditions for Determination of Tariff) Regulation (k) Condone any inadvertent omissions/errors/shortcomings and permit BSEB to add/change/modify/alter this filing and make further submissions as may be required at a future date. (l) Pass any other H C appropriate under the circumstances of the case and in the interest of justice. BIHAR STATE ELECTRICITY BOARD 14

16 Review Petition for FY and ARR & Tariff Petition for FY Aggregate Revenue Requirement & Revenue Gap 2.1. Preamble This section outlines the projection of aggregate revenue requirement for FY & FY , revenue from existing tariff, revenue from various sources and revenue gap of BSEB for FY In line with the provisions of the BERC regulations, BSEB hereby submits Review Petition for FY & Tariff petition for FY Review of Aggregate Revenue Requirement for FY BSEB filed its ARR & Tariff Petition for FY based on the actual data available of FY Based on the proposal subm B EB H Commission approved the ARR & Tariff for FY along with regulatory asset in its Tariff Order for FY dated 1 st June, As Annual Account adopted by Board is available for FY , BSEB has review its Aggregate Revenue R H C approval of the same Aggregate Revenue Requirement & Tariff Proposal for FY BSEB has filed its Aggregate Revenue Requirement for FY based on the provisional Annual Account available for FY BSEB has proposed increase in tariff of various categories along with addition/revision in existing tariff structure. BSEB has proposed to approve remaining revenue gap after proposed tariff as regulatory asset This section outlines the projection of aggregate revenue requirement for FY & FY , revenue from existing tariff, revenue from various sources and revenue gap of BSEB for FY In line with the provisions of the BERC BIHAR STATE ELECTRICITY BOARD 15

17 Review Petition for FY and ARR & Tariff Petition for FY regulations, BSEB hereby submits Review Petition for FY & Tariff petition for FY Projection of Energy Requirement Approach for Sales Projection It has been observed from the past experience that the trend analysis based on historical data has proved to be reasonably accurate for estimating the load, number of consumers and energy consumption. In light of the above, BSEB has estimated the above for various consumer categories primarily based on the CAGR trends observed during past years. Wherever the trend has seemed unreasonable or unsustainable, the growth factors have been appropriately modified by BSEB, to arrive at more realistic projections Summary of Growth & Projections The growth rates observed in the energy sold to each consumer category has been analyzed for the purpose of sales projections for the FY and review of sales for FY The analysis of the growth rate lends insight into consumption behavior of each consumer category and hence forms the basis of forecasting the sales to each category Category-wise Units Sold The Break-up of the past sales and the CAGRs for different periods are as follows. The 5 year CAGR has been computed for the period 2006 & 2011, 4 year CAGR for the period 2007 & 2011, 3 year CAGR for the period 2008 & 2011, 2 year CAGR for the period 2009 & 2011 and 1 year growth rate is for the period 2010 & BIHAR STATE ELECTRICITY BOARD 16

18 Review Petition for FY and ARR & Tariff Petition for FY Table 1 : Historical Trend in Category-wise Units sold In MUs Sr Category Name No. (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) 1 Kutir Jyoti Domestic 1, , , , , , Commercial Public Lighting Irrigation & Agriculture Public Water Works Industrial LT Industrial HT , , , Railway Traction UI Total 3, , , , , , Table 2 : Category-wise Growth rates of Units Sold Sr. No. Category Name 1 Yr CAGR 2 Yr CAGR 3 Yr CAGR 4 Yr CAGR 5 Yr CAGR 1 Kutir Jyoti 77.4% 34.1% 44.8% 17.3% 13.6% 2 Domestic 5.2% 8.3% 6.2% 9.6% 10.1% 3 Commercial 4.3% 8.5% 9.7% 12.2% 9.4% 4 Public Lighting 22.9% 20.9% 11.5% 7.1% 10.7% 5 Irrigation & Agriculture -51.1% -29.3% -16.1% -7.2% -15.2% 6 Public Water Works -57.9% -38.7% -26.3% -22.1% -19.5% 7 Industrial LT 17.7% 21.8% 17.7% 19.5% 15.0% 8 Industrial HT 1.7% 8.5% 15.9% 18.5% 17.4% 9 Railway Traction 3.0% 7.0% 6.0% 4.5% 5.0% 10 UI 52.7% 55.5% 22.8% 7.9% - Total 1.2% 7.4% 8.2% 9.0% 9.8% Consumer Profile The Break-up of the category-wise number of consumers and the CAGRs for different periods are as follows: BIHAR STATE ELECTRICITY BOARD 17

19 Review Petition for FY and ARR & Tariff Petition for FY Sr. No. Category Name Table 3 : Category-wise No. of Consumers As on (Actual) As on (Actual) As on (Actual) As on (Actual) As on (Actual) As on (Actual) 1 Kutir Jyoti 2,40,349 2,40,349 2,48,293 2,58,221 3,19,244 5,79,852 2 Domestic 10,38,658 13,86,639 15,13,675 16,71,636 17,97,404 19,38,023 3 Commercial 1,38,166 1,46,847 1,58,646 1,67,422 1,90,089 1,95,145 4 Public Lighting Irrigation & Agriculture 57,581 57,581 55,762 51,442 59,121 54,709 6 Public Water Works Industrial LT 10,718 11,647 12,933 13,821 18,917 17,144 8 Industrial HT Railway Traction Total 14,87,141 18,44,843 19,91,190 21,64,604 23,86,866 27,87,032 Table 4 : Growth rate of no. of Consumers Sr. No. Category Name 1 Yr CAGR 2 Yr CAGR 3 Yr CAGR 4 Yr CAGR 5 Yr CAGR 1 Kutir Jyoti 81.6% 49.9% 32.7% 24.6% 19.3% 2 Domestic 7.8% 7.7% 8.6% 8.7% 13.3% 3 Commercial 2.7% 8.0% 7.1% 7.4% 7.1% 4 Public Lighting -19.3% -7.7% -3.5% -5.2% -2.2% 5 Irrigation & Agriculture -7.5% 3.1% -0.6% -1.3% -1.0% 6 Public Water Works 20.2% 6.2% 6.6% 7.6% 7.4% 7 Industrial LT -9.4% 11.4% 9.9% 10.1% 9.8% 8 Industrial HT -1.5% 2.6% 6.2% 7.0% 6.5% 9 Railway Traction 0.0% 0.0% 0.0% 3.6% 2.9% Total 16.8% 13.5% 11.9% 10.9% 13.4% Connected Load Profile The Break-up of the connected load profile and the CAGRs for different periods thereof are as follows. BIHAR STATE ELECTRICITY BOARD 18

20 Review Petition for FY and ARR & Tariff Petition for FY Table 5 : Category-wise Connected Load in KW As on As on As on As on As on As on Sr. Category Name No. (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) 1 Kutir Jyoti 14,507 14,507 15,003 14,807 19,416 34,934 2 Domestic 14,11,332 14,11,332 15,26,959 17,29,924 19,96,915 22,28,984 3 Commercial 2,38,543 2,38,543 2,70,641 3,05,971 3,73,932 4,34,253 4 Public Lighting 5,840 5,840 4,990 4,202 4,586 5,636 5 Irrigation & Agriculture 2,47,003 2,47,003 2,29,933 2,06,475 2,09,719 2,15,234 6 Public Water Works 18,726 18,726 19,862 21,385 17,093 18,741 7 Industrial LT 1,15,059 1,15,059 1,26,276 1,34,812 1,62,297 1,76,872 8 Industrial HT 2,51,991 2,51,991 2,88,460 3,17,336 3,33,413 3,48,353 9 Railway Traction 99,000 99,000 1,02,150 1,03,000 1,02,150 1,02,150 Total 24,02,001 24,02,001 25,84,274 28,37,912 32,19,521 35,65,157 Table 6 : Growth Rate for Connected Load Sr. No. Category Name 1 Yr CAGR 2 Yr CAGR 3 Yr CAGR 4 Yr CAGR 5 Yr CAGR 1 Kutir Jyoti 79.9% 53.6% 32.5% 24.6% 19.2% 2 Domestic 11.6% 13.5% 13.4% 12.1% 9.6% 3 Commercial 16.1% 19.1% 17.1% 16.2% 12.7% 4 Public Lighting 22.9% 15.8% 4.1% -0.9% -0.7% 5 Irrigation & Agriculture 2.6% 2.1% -2.2% -3.4% -2.7% 6 Public Water Works 9.6% -6.4% -1.9% 0.0% 0.0% 7 Industrial LT 9.0% 14.5% 11.9% 11.3% 9.0% 8 Industrial HT 4.5% 4.8% 6.5% 8.4% 6.7% 9 Railway Traction 0.0% -0.4% 0.0% 0.8% 0.6% Total 10.7% 12.1% 11.3% 10.4% 8.2% Growth Projections for FY & FY This section discusses in detail the basis for the projections of Sales, Connected Load and No. of Consumers for various categories of consumers as enumerated above. For projecting the sales, no. of consumers and connected load for FY & FY , FY has been considered as the base year. Growth rates for projections of individual categories for FY & FY have been assumed based on past CAGR of various years and same has been applied to FY or specific number has been considered based on the details. BIHAR STATE ELECTRICITY BOARD 19

21 Review Petition for FY and ARR & Tariff Petition for FY BSEB has adopted a consistent approach in projection of energy sales, connected load and number of consumers. BSEB has used 5 years CAGR for domestic consumer categories (and other categories which have stable specific consumption) and 3 years CAGR for consumer categories whose consumption is driven by current business environment. The approach adopted by BSEB is in line H C T O er for FY C U C The following categories of consumers are unmetered: Kutir Jyoti consumers in rural & urban areas Domestic consumers in rural areas N Street lights Consumers both in urban and rural areas Irrigation/ Agriculture pump sets (Private and State Government) T as per the following norms: Kutir Jyoti (Rural): 18 Units per month per connection Kutir Jyoti (Urban): 30 Units per month per connection D I U ND I U IA I P 1485 Units per annum per KW IA II U HP Street Light: Based on past trend Kutir Jyoti In view of the increased power availability to BSEB in the current year and in the ensuing year, BSEB has increased the power supply hours to the rural areas of Bihar to all consumer categories. Accordingly, the Kutir Jyoti consumers are being BIHAR STATE ELECTRICITY BOARD 20

22 Review Petition for FY and ARR & Tariff Petition for FY supplied power for increased number of hours. For the purpose of projecting the energy sold to the Kutir Jyoti unmetered category of consumers, BSEB has used normative consumption of 18 units per month per connection for unmetered rural areas and 30 units per month per connection for metered rural area & metered urban area. The number of consumers used for this projection is the average of the opening and closing number of consumers for the year. In the tariff order for FY H C consumption by the Kutir Jyoti rural connections to the extent of only 18 units per connection per month as against 30 units per month claimed by BSEB thereby reducing the Kutir Jyoti sales as projected by BSEB. T H C directed BSEB to carry a study of consumption pattern of Kutir Jyoti Consumers to establish a consumption norm. BSEB has done a sample study of consumption by Kutir Jyoti consumers. Based on this sample study the average monthly consumption of Kutir Jyoti consumers is determined to be units per month. BSEB H C approve the considered consumption norm of 30 units per month for Kutir Jyoti consumers for FY However, BSEB has considered consumption norm of 18 units per consumer per month for projecting sales of Kutir Jyoti (Rural - Unmetered). B EB H C states across the country the electricity consumption by rural and urban Kutir Jyoti consumer is similar to the specific consumption claimed by BSEB. The table below provides the basis for determining sales to this consumer category in different states of the country. Sr. No. State Allowed units for BPL Consumers 1 Bihar (BSEB) 18 units for rural areas 30 units for urban areas. BIHAR STATE ELECTRICITY BOARD 21

23 Review Petition for FY and ARR & Tariff Petition for FY Gujarat Benefit of concessional tariff given to the first 30 units consumed by BPL consumers. Above that normal DS tariff charged. 3 Madhya 30 units per connection per month allowed Pradesh irrespective of geographical location 4 Chhattisgarh 40% of total consumers in BPL assumed to have sales of 80 units per month and accordingly billed on other domestic rates For all other consumers in BPL category 30 units per connection per month approved in tariff order for FY10. 5 Tamil Nadu 26 units per connection per month allowed assuming 8 hours of supply per day for a connected load of 110W 6 Maharashtra 30 units per connection per month 7 Punjab Connected load of upto 1000 W allowed to BPL consumers Free electricity provided to BPL consumers upto the first 100 units As evident from the above table, most of the states have considered 30 units for both rural as well as urban BPL/KJ connections. In view of the above, H Commission is requested to consider the consumption norm of 30 units per connection per month for both urban and rural Kutir Jyoti consumers of the state. BSEB is projecting addition of consumers during FY & consumers during FY in Kutir Jyoti metered category in the rural areas. The sale to the Kutir Jyoti metered consumers in the rural areas has been projected based on consumption norm of 30 units per connection per month and average number of consumers in this tariff category. Accordingly, the sales for Kutir Jyoti consumers have been projected at MU for FY as against approved level of 263 MU. For FY , BSEB has projected sale of MU for Kutir Jyoti category. Domestic Unmetered (Rural) - DS-I BIHAR STATE ELECTRICITY BOARD 22

24 Review Petition for FY and ARR & Tariff Petition for FY BSEB has witnessed a near double digit growth in the last few years in the units sold to this category and it expects the same trend to continue in future years as well. The number of consumers in the Domestic category has witnessed a five years CAGR of 13.3% between FY and FY BSEB expects that this trend will continue in future also. For DS-I Category the number of consumers for FY has been projected based on the 5 years CAGR of 13.3% at consumers. For the FY , BSEB revises the sales estimate for this category at MU as against 886 MU H. As per the consumption norms of 80 units per month per consumer, the sales for FY have been projected at MU. Domestic Metered (Urban) - DS-II Domestic II category is for metered domestic consumers in urban areas. For this category, the number of consumers, connected load and energy sales for FY & FY has been projected at the 5 years CAGR of 13.3%, 9.6% & 10.1% respectively taking FY as the base year. For the FY BSEB revises the sales estimates for this category at MU MU H. For FY , BSEB has projected sale of MU. Domestic -DS-III This is applicable for registered societies, for their residential colonies, having not less than 15 houses / flats in the colony taking load in bulk at a single point. For this category the energy sales has been projected at the 5 years CAGR of 13.3 %. BSEB revise the sale estimates for this category at 0.90 MU for FY and 0.99 MU projecting for FY BIHAR STATE ELECTRICITY BOARD 23

25 Review Petition for FY and ARR & Tariff Petition for FY N DI U R ND I N DI C commercial consumers in the rural areas. The number of consumers and connected load for this consumer category for FY has been projected at 3 years CAGR of 7.1% & 17.1% respectively. BSEB revises its sales estimates for this category to MU for FY as MU H Based on the consumption norm of 80 units per month per consumer, the sale for this category for FY has been projected at MU. N DII (Metered) U ND II) The number of consumers, connected load and energy sales has been projected at 3 years CAGR. BSEB revises its energy sales estimates to MU for FY as against 575 MU H ssion. The sale for FY is projected at a 3 years CAGR of 9.7% at MU. N D III R P ND III This consumer category includes connections at religious places. The number of consumers, connected load and energy sales for this consumer category has been projected based on 3 years CAGR. BSEB revises its sales estimate for this category at MU for FY against MU H. The energy sale for FY has been projected at MU. Industrial LTIS-I The 3 years CAGR between FY and FY for energy sales, connected load, number of consumers is 17.7%, 32.2% & 9.9% respectively for industrial LT BIHAR STATE ELECTRICITY BOARD 24

26 Review Petition for FY and ARR & Tariff Petition for FY category. The same has been considered for calculating sales, no. of consumer and connected load for FY & FY Thus no. of consumer, connected load and energy sales has been projected at 19317, kw and MU for LTIS-I category. BSEB revises its sales estimate for this category at MU for FY MU H Industrial LTIS-II The 3 years CAGR between FY and FY for energy sales, connected load, number of consumers is 17.7%, 32.2% & 9.9% respectively for industrial LT category. The same has been considered for calculating sales, no. of consumer and connected load for FY & FY Thus no. of consumer, connected load and energy sales has been projected at 1371, kw and MU for LTIS-II category. BSEB revises its sales estimate for this category at MU for FY MU H Street Lighting (Public Lighting) SS-I, SS-II, SS-III This category consists of both metered and unmetered consumers. The SS category has shown negative growth rate in last 5 years. Considering improved power availability in the state, energy sales, connected load and number of consumers for all sub categories under this category has been considered at the previous year level. Thus the energy sale for the SS-I, SS-II & SS-III categories has been projected at 5.61 MU, MU & 1.36 MU respectively. Energy sale under this category has been projected at MU, which is same as the sale in the previous year. BSEB revises its sales estimate for this category at MU for FY MU H For FY , sale of MU is projected for Street light category. Irrigation and A IA I) BIHAR STATE ELECTRICITY BOARD 25

27 Review Petition for FY and ARR & Tariff Petition for FY Irrigation and agriculture Service consumer category is unmetered and has two sub categories: IAS-I, for the private consumers and IAS-II, for the government consumers. In past for agriculture category, number of consumers has shown positive growth whereas connected load showed negative growth. In the recent past, the number of consumers has shown a declining trend. In IAS-I category for FY & FY , BSEB has projected no change in the number of consumers and the connected load over FY In the tariff order for FY H C ission had considered consumption of 1485 units per kw per annum in the IAS-I category thereby reducing sales as projected by BSEB for this consumer category. However, BSEB has considered the consumption norm of 1485 units per annum per KW, BSEB has projected energy sales to this sub category for FY for the projected connected load of KW at MU. BSEB revises its sales estimate for this category at MU for FY against MU as H Irrigation and A IA II) For IAS-II sub category, BSEB projects to add 2764 tube wells having connected load of 20 kw each to its network in the month of December of FY Thus BSEB projects number of consumers and connected load for FY & FY at 5810 and 87598kW. Considering the consumption norm of 225 units per HP per month, the energy sales for FY & FY for a connected load of KW has been projected at MU & MU respectively. BSEB revises its sales estimate for this category at MU for FY against MU H Public Water Works BIHAR STATE ELECTRICITY BOARD 26

28 Review Petition for FY and ARR & Tariff Petition for FY Public water works has witnessed negative growth over the past few years. The 3 years CAGR and 5 years CAGR for sales recorded between FY and FY are -26.3% and -19.5% respectively. Thus BSEB is expecting that the energy sales for FY and FY to this category will remain same as that of previous year at MU. BSEB revises its sales estimate for this category at MU for FY against MU H commission. HT I HT I) The energy sales, connected load and number of consumers for FY are projected at 3 years CAGR. The 3 years CAGR recorded between FY and FY by this category for energy sales, connected load and number of consumers is 15.9%, 5.3% and 6.2% respectively. BSEB projects its number of consumers, connected load and energy sales at 976, kw and MU respectively. For FY , BSEB revises its energy sales to MU as against MU H commission. HT Industry (HT II) The energy sales, connected load and number of consumers for FY are projected at 3 years CAGR. The 3 years CAGR recorded between FY and FY by this category for energy sales, connected load and number of consumers is 15.9%, 5.3% and 6.2% respectively. BSEB projects its number of consumers, connected load and energy sales at 38, kw and MU respectively. For FY , BSEB revises its energy sales to MU as against 289 MU H HT Industry (HT III BSEB will provide electricity supply in FY to upcoming Rail Wheel Factory at Chapra and in FY to Electric Locomotive factory at Madhepura. The contract demand of the Rail Wheel Factory is MVA while Electric Locomotive BIHAR STATE ELECTRICITY BOARD 27

29 Review Petition for FY and ARR & Tariff Petition for FY Factory is 13.5 MVA. For projection of the connected load of new consumers, power factor of 0.9 is considered. For the projection of energy sales to new consumers BSEB has considered the load factor as per actuals of FY BSEB has projected number of consumers, connected load and energy sales in this subcategory for FY & FY considering the addition of the above said consumers. Thus for FY BSEB projects its number of consumers, connected load and energy sales at 2, kw and MU. For FY BSEB projects its number of consumers, connected load and energy sales at 3, kw and MU. For FY , BSEB revises its energy sales to MU as against 110 MU H HT Industry (HTSS) For HTSS category, no growth has been projected in no. of consumers, connected load and sales. BSEB projects number of consumers and connected load same as of FY during the FY & FY BSEB projects sale of MU for FY & FY Railway Traction BSEB will provide electricity supply in FY to Railways at T.S.S. Chapra, Hazipur, Pancrukhi, Samastipur, Jhajha with contract demand of 10.8 MVA each. In FY BSEB will provide electricity supply to Railways at T.S.S. Ramdayalunagar, Bachhwara, Khagaria, Naugachia, Katihar with contract demand of 10.8 MVA each. For projection of the connected load of new consumers, power factor of 0.9 is considered. For the projection of energy sales to new consumers for FY & FY BSEB has considered the load factor as per actuals of FY BSEB has projected number of consumers, connected load and energy sales in this sub-category for FY & FY considering the addition of the above said consumers. BIHAR STATE ELECTRICITY BOARD 28

30 Review Petition for FY and ARR & Tariff Petition for FY Thus for FY , BSEB projects its number of consumers, connected load and energy sales at 20, kw and MU. For FY , BSEB projects its number of consumers, connected load and energy sales at 25, kw and MU. For FY , BSEB revises its energy sales to MU as against 496 MU H Sales Summary The following table summarises the growth rate assumptions and the projected numbers of the sales, number of consumers and connected load within various tariff categories for FY & FY BIHAR STATE ELECTRICITY BOARD 29

31 Review Petition for FY and ARR & Tariff Petition for FY Table 7 : Projection of Sales, No. of Consumers and Connected Load for Bihar Sl. No. of Consumers (As on 31st March) Connected Load (As on 31st March) (KW) Sales (MU) No. Category FY FY FY FY FY FY Kutir Jyoti - Unmetered(Rural) 3,02,914 3,02,914 18,175 18, Kutir Jyoti - Metered(Rural) 11,59,866 24,55,970 69,592 1,47, Kutir Jyoti - Metered(Urban) 3,571 3, Domestic - I 10,23,413 11,59,387 9,80,069 10,73, , Domestic - II 11,72,056 13,27,779 14,61,938 16,01,860 1, , Domestic - III N.D.S.-I(Rural) 22,208 23,795 25,078 29, N.D.S.-II (Urban) 1,86,706 2,00,048 4,81,488 5,63, N.D.S.-III(Temple etc) ,819 2, Irrigation IAS-I(Private) 51,663 51,663 1,82,916 1,82, Irrigation IAS-II(Govt.) 5,810 5,810 87,598 87, LT Industrial L.T.I.S.-I 17,585 19,317 1,20,359 1,34, LT Industrial L.T.I.S.-II 1,248 1,371 77,537 86, Public Water work(pww) ,741 18, Street light-i (Metered) Street light-ii (Un- Metered) ,452 4, Street Light III High Tension HTS-I ,29,417 2,44, High Tension HTS-II ,707 80, High Tension HTS-III ,660 47, H.T.S.S.(Induction furnace) ,169 50, Rly. Traction ,50,750 1,99, Total 39,49,483 55,54,152 40,73,319 45,75,704 5, , Premium Tariff Areas: BSEB is implementing premium tariff for the PESU area (all divisions), Rajgir area (11 kv Town Feeder & 11 kv Kund Feeder) and Bodh Gaya area (11 kv Bhagalpur Feeder, 11 kv PHED Feeder, 11 kv Town feeder, 11 kv Magadh University Feeder and 11 kv New Industrial Feeder). No. of consumers, connected load and sales data for the Premium Tariff Areas and Rest of Bihar is shown below for FY &FY BIHAR STATE ELECTRICITY BOARD 30

32 Review Petition for FY and ARR & Tariff Petition for FY Table 8 : Projection of Sales, No. of Consumers and Connected Load for Premium Tariff Areas Sl. No. of Consumers (As on 31st March) Connected Load (As on 31st March) (KW) Sales (MU) No. Category FY FY FY FY FY FY Kutir Jyoti - Unmetered(Rural) Kutir Jyoti - Metered(Rural) Kutir Jyoti - Metered(Urban) 1,373 1, Domestic - I 2,473 2,802 2,603 2, Domestic - II 2,89,369 3,27,816 4,60,125 5,04, Domestic - III N.D.S.-I(Rural) N.D.S.-II (Urban) 62,637 67,113 1,65,197 1,93, N.D.S.-III(Temple etc) Irrigation IAS-I(Private) 2,112 2,112 10,448 10, Irrigation IAS-II(Govt.) LT Industrial L.T.I.S.-I 3,380 3,713 29,512 33, LT Industrial L.T.I.S.-II ,274 22, Public Water work(pww) ,884 5, Street light-i (Metered) Street light-ii (Un- Metered) ,049 1, Street Light III High Tension HTS-I ,889 94, High Tension HTS-II ,431 26, High Tension HTS-III H.T.S.S.(Induction furnace) ,187 14, Rly. Traction Total 3,62,697 4,06,365 8,24,140 9,10,012 1, , BIHAR STATE ELECTRICITY BOARD 31

33 Review Petition for FY and ARR & Tariff Petition for FY Table 9 : Projection of Sales, No. of Consumers and Connected Load for Rest of Bihar Sl. No. of Consumers (As on 31st March) Connected Load (As on 31st March) (KW) Sales (MU) No. Category FY FY FY FY FY FY Kutir Jyoti - Unmetered(Rural) 3,02,914 3,02,914 18,175 18, Kutir Jyoti - Metered(Rural) 11,59,866 24,55,970 69,592 1,47, Kutir Jyoti - Metered(Urban) 2,198 2, Domestic - I 10,20,940 11,56,585 9,77,465 10,71, , Domestic - II 8,82,687 9,99,963 10,01,813 10,97, Domestic - III N.D.S.-I(Rural) 22,077 23,655 24,909 29, N.D.S.-II (Urban) 1,24,070 1,32,936 3,16,292 3,70, N.D.S.-III(Temple etc) ,338 1, Irrigation IAS-I(Private) 49,551 49,551 1,72,468 1,72, Irrigation IAS-II(Govt.) 5,692 5,692 87,049 87, LT Industrial L.T.I.S.-I 14,205 15,604 90,847 1,01, LT Industrial L.T.I.S.-II ,263 64, Public Water work(pww) ,856 12, Street light-i (Metered) Street light-ii (Un- Metered) ,403 3, Street Light III High Tension HTS-I ,40,528 1,49, High Tension HTS-II ,276 54, High Tension HTS-III ,660 47, H.T.S.S.(Induction furnace) ,982 35, Rly. Traction ,50,750 1,99, Total 35,86,786 51,47,787 32,49,179 36,65,692 4, , Loss trajectory The T & D losses of BSEB are on the higher side as compared to the target set up by t H Commission because of lower unmetered consumption norm, inefficient meter billing due to defective meters. Further, dilapidated distribution network of BSEB has contributed to higher T&D losses of BSEB. Large scale rural electrification under RGGVY scheme leading to expansion of rural distribution network too has contributed to the T&D losses of BSEB. BIHAR STATE ELECTRICITY BOARD 32

34 Review Petition for FY and ARR & Tariff Petition for FY T H C K Jyoti connections from 30 units per month to 18 units per month and for Agriculture connections of IAS-I category from 2000 units per annum to 1485 units per annum. It is submitted that the restated consumption norms are not reflective of the actual power consumption by these categories and is adding to the T&D losses of BSEB. Consequent to increased availability of power as reflected in the projected increase in power purchase quantum, BSEB would be able to increase number of hours of electricity supply to such consumers. This is expected to increase specific consumption of such consumers, in excess of the norms approved by t H C T T D previous years as approved by t H C actual as per accounts and actual losses as per the norm specified by t H C below:- Table 10 : T&D Losses of BSEB for previous years T&D Losses (%) Approved Actual - Actual - Accounts BERC Norm FY % 42.61% 47.76% FY % 39.06% 44.10% FY % 37.98% 44.01% FY % 38.32% 42.58% FY % 43.59% 44.80% T H C T O FY -12 dated 1 st June, 2011 had retained the target of 29% for FY which is same as fixed by it in its tariff order of FY dated 26 th August, 2008 and fixed target of 27.5% for FY It would be pertinent to mention here that BSEB has undertaken massive electrification works under the RGGVY scheme. There has been a tremendous increase in the network of BSEB in the last 2 years in the high loss rural areas consequent to village electrification. The village electrification drive has led to an addition of large number of Kutir Jyoti consumers. This number of such consumers BIHAR STATE ELECTRICITY BOARD 33

35 Review Petition for FY and ARR & Tariff Petition for FY is expected to go up to 27 lakhs within the next two years from 5.89 lakhs in FY This significant expansion of the network has not only led to increase in the technical losses in the system, but has also rendered the system porous and prone to theft of electricity. Due to both these reasons, BSEB has not been able to achieve the loss targets set H C mmission T H C T&D losses at 32% but the actual T&D losses were 43.59% as per the Annual Accounts for FY Considering the above fact, the targets for FY and FY at 29% and 27.5% are not achievable and need to be revised I H C T D loss levels for FY at 42% & FY at 41% in consideration of the existing T&D loss levels of BSEB. The tabular representation of the same is given below: Table 11 : Projection of T&D Losses T&D Losses (%) Approved Projected FY % 42.00% FY % 41.00% Even though BSEB has considered consumption norm of 18 units per connection for Kutir Jyoti (Rural - Unmetered) and 1485/kW/Annum for IAS-I for calculation of sales of FY & FY , B EB H C revision of the existing consumption norms for Kutir Jyoti (Rural Unmetered) and IAS-I to 30 units per connection per month and 2000 units per KW per annum respectively. Frequent burning of distribution transformers installed under the RGGVY scheme corroborates to the higher consumption by Kutir Jyoti and other un-metered rural consumers. In order to ascertain the same, BSEB has undertaken a drive to provide meters to all unmetered consumers in a time bound manner T H C T O FY dated 1 st June, 2011, while disallowing the request of BSEB for re-fixing higher T&D loss reduction trajectory. At para of the referred order it has BIHAR STATE ELECTRICITY BOARD 34

36 Review Petition for FY and ARR & Tariff Petition for FY observed B EB implementation of Government sponsored RGGVY scheme, then it should ask the State Government T D Energy Department of Government of Bihar has in its letter no dated 19/09/11 set priority for use of this resource provided by it. As per this letter, this funding will be first used to compensate financial losses arising on account of actual T&D losses being higher than the approved T&D losses. Remaining funding will be used for providing subsidies to Agricultural and consumers in rural areas BSEB has taken several steps for reduction/ control of AT&C losses. The on-going/ recent initiatives of BSEB for reducing AT&C losses include the following: a. For reduction of technical losses, BSEB has initiated the process for strengthening of the electrical infrastructure and 100% consumer metering through plan assistance from the State Government of Bihar. b. BSEB has placed order for procurement of 6.23 lakhs of single phase and 15,500 three phase energy meters. These meters are now being installed. Similarly, HT-LT CT meters and feeder meters have also been procured and are in the process of installation. c. In order to induce efficiencies in several of its processes, BSEB has outsourced several field activities to competent private agencies. A summary of outsourcing initiatives undertaken by BSEB is submitted below: i. Computerized billing for all Electric Supply Areas; ii. Meter reading has been completely outsourced by BSEB to ensure meter reading of all metered consumers; iii. Monthly bill distribution activity has been completely outsourced by BIHAR STATE ELECTRICITY BOARD 35

37 Review Petition for FY and ARR & Tariff Petition for FY BSEB to ensure timely distribution of bills to all consumers; iv. Monthly bill collection activity is also under process for outsourcing by BSEB to ensure timely collection of bills of all consumers; d. BSEB has also initiated the process of implementation of SCADA system in the PESU supply area which includes spot billing through handheld devices, computerized billing and consumer indexing. e. BSEB is monitoring the T&D losses and bill collections at each division, circle and supply area levels for identifying loss making areas where improvement initiatives need to be undertaken. f. BSEB has introduced a performance appraisal system for its employees in the field offices which is linked to their performance on revenue collection/ loss reduction. Additionally, the field officers are also being continuously sensitized by BSEB about its financial health and the need to control/ reduce losses to improve it. g. Month long camps are periodically organized at each Electric Supply Division for enhancement of load, reconnection of disconnected connections, redressal of consumer grievances/ complaints etc. h. BSEB has initiated special drives in loss making areas for detection of theft and load verification of its existing connections. The following actions have been taken in this regard: i. Assessing officers have been directed to pass reasoned/ speaking assessment order along with Appellate Authority details; ii. BSEB has introduced a vigilance helpline ( & ). BIHAR STATE ELECTRICITY BOARD 36

38 Review Petition for FY and ARR & Tariff Petition for FY i. The new consumer addition/ connection release time has been expedited for increasing the number of effective consumers and also regularizing consumers not in the billing net of BSEB. j. Additional efforts are being made for collection of outstanding arrears, including the following: i. Special drive for realization of arrears from private consumers with outstanding dues of Rs. 1,00,000 and above. ii. Pursuing defaulting Government Departments for clearance of outstanding dues; k. Additional state-of-the-art payment gateways are being planned for convenience of the consumers. ATPs have been installed by BSEB. l. BSEB has also taken measures for initiating involvement of gram panchayats/ D A feeders through appropriate franchisee schemes It is submitted that the BSEB is making all efforts to control/ reduce the T&D losses in the State, however, the losses during and could not be reduced H C mainly due to massive addition of network in rural areas, addition of subsidized rural/kutir Jyoti connections and lack of availability of funds for undertaking loss reduction works envisaged by BSEB. T H C is requested that the T&D targets for FY & FY as proposed in this petition be accordingly approved Sale from Additional Power Availability Considering the power crisis situation in Bihar, BSEB is purchasing power through short/medium term agreement from NVVNL. BSEB will provide this power to categories where hours of power supply is on lower side. BSEB will provide this BIHAR STATE ELECTRICITY BOARD 37

39 Review Petition for FY and ARR & Tariff Petition for FY power to towns where premium tariff is proposed, industrial categories on LT line, urban areas, PWW and Street Lights. BSEB is projecting additional sale over and above earlier discussed sales projection. This supply will be limited to above discussed categories and hence revenue is projected based on the average revenue realisation rate of such categories. BSEB is projecting additional sale of 171 MU & 266 MU for FY & FY respectively Sale from Nepal & UI For FY & FY , BSEB is projecting sale of 555 MU to Nepal and 293 MU under UI same as of actual of FY Own Generation BSEB owned and operated only one thermal generating plant i.e. Barauni Thermal Unit Power Station (BTPS) located at Barauni. The total installed capacity of the BTPS in FY was 320 MW. The current status of all units of BTPS is summarized in the table below for reference: Unit capacity (MW) Table 12 : Current Status of different units of BTPS Date of Commissioning Current status I Retired N/A Retired since II Retired N/A Retired since III Retired N/A Retired since IV 50 9/11/1969 Shutdown since V 50 1/12/1971 Shutdown since VI 110 1/12/1984 Unit working at derated capacity; Dismantling of the Unit and its R&M work is planned from July 2012 VII /03/1985 Under shutdown; R&M is underway; Expected to come in operation from July As may be seen from above, Units I, II and III were retired long back i.e. before Out of the remaining four units, unit number IV and V are over 42 and 40 BIHAR STATE ELECTRICITY BOARD 38

40 Review Petition for FY and ARR & Tariff Petition for FY years old respectively and have completed their useful economic life. These Units are under shutdown for over 17 years At present Unit VII is under shutdown and undergoing Renovation & Modernization work for revival. Dismantling of the Unit VI for R&M work is planned from July 2012 while R&M of Unit VII is expected to be completed by June During FY , Unit VIth will be taken out for R&M while R&M of Unit VII will be completed. After R&M, unit will be under stabilization period and hence higher specific oil consumption is requested for BTPS plant. Station heat rate is expected to improve from FY level of 4103 kcal/kwh to 4000 kcal/kwh & 3700 kcal/kwh for FY & FY respectively. Coal price in FY was Rs per MT but in recent time it has witnessed steep hike and has reached the level of Rs per MT in month of August, Hence coal price for FY & FY is expected to be on higher side from the level of FY Other fuel related cost is projected in the ratio of other fuel related cost to fuel cost in line with FY The assumptions and norms used for projection of own cost of generation is summarized in the table below: BIHAR STATE ELECTRICITY BOARD 39

41 Review Petition for FY and ARR & Tariff Petition for FY Table 13 : Variable Cost of Own Generation Parameter Units FY FY FY FY (Actual) (Approved) (RE) (Proposed) Gross Generation MUs Auxiliary Consumption MUs Net Generation MUs Capacity MW Derated Capacity MW Plant Load Factor % 11.44% 32.62% 10.45% 16.09% Auxiliary Consumption % 17.95% 10.00% 15.00% 12.00% Station Heat Rate kcal/kwh 4,103 4,316 4,000 3,700 Sp. Oil Consumption ml/kwh Gross Calorific Value of Coal kcal/kg 3,858 4,284 3,800 3,700 Calorific Value of Oil kcal/l 9,950 10,000 9,996 9,996 Overall Heat G Cal 9,04,534 12,94,878 8,08,009 11,46,999 Heat from Oil G Cal 69,046 30,000 70,671 92,961 Heat from Coal G Cal 8,35,488 12,64,878 7,37,337 10,54,038 Transit losses % 0.00% 3.80% 0.00% 0.00% Actual Oil Consumption kl 6,939 3,000 7,070 9,300 Actual Coal Consumption MT 2,16,560 3,06,948 1,94,036 2,84,875 Specific Coal Consumption kg/kwh Price of Coal Rs./MT 1,823 2,328 2,600 3,250 Price of Oil Rs/kl 31,388 30,000 50,780 57,504 Coal Cost Rs Crores Oil Cost Rs Crores Fuel Cost Rs Crores Other Fuel related Cost Rs Crores Total Fuel Cost Rs Crores Fuel Cost/Unit Gross Rs/kWh Fuel Cost/Unit Net Rs/kWh BSEB revises its estimate of fuel cost for FY to Rs Crores against Rs. C H T H C requested to approve the fuel cost of Rs for FY for generation of 310 MU B EB Power Purchase from other sources BSEB has firm allocations of power from thermal power plants of NTPC, Hydel Power Plants of NHPC, and the hydel plants of Chukka & Tala through PTC, hydel BIHAR STATE ELECTRICITY BOARD 40

42 Review Petition for FY and ARR & Tariff Petition for FY plants of BSHPC and thermal power plant of Kanti BUNL. In addition to these, BSEB will also purchase power from co-generation by sugar mills, Nepal, Short-term/ Medium-term and Renewable sources B EB the table below: Table 14 : Allocation from Long-term Sources FY FY MW % MW % NTPC Farakka % % Kahalgaon 1 st ph % % Kahalgaon 2 nd ph % % Talcher % % PTC Chukka % % Tala % % NHPC Rangit % % Teesta % % Other Sources BSHPC % % NEA - - Kanti BUNL % % Sugar Mills Short/Medium term Total 2,250 2, Capacity allocation for the NTPC plants is going to remain same as approved by the H C FY -12 and same allocation is going to remain for FY also. For generation from Farakka, Talchar and Kahalgaon plants, power H C T Order for FY dated 01 st June, Power availability of MU, MU and MU is projected for FY & FY from Farakka Plant, Talchar Plant and Kahalgaon Plant respectively Quantum of power purchased from hydro plants like Chukka, Tala, Rangit and Testa, has not varied significantly during the period FY to FY BIHAR STATE ELECTRICITY BOARD 41

43 Review Petition for FY and ARR & Tariff Petition for FY Hence, energy likely to be available during FY & FY is projected at the same level of FY B A A Energy available from BSHPC, Sugar Mills, Nepal and KBUNL is projected for FY As there is no capacity addition is projected from these plants during FY , energy is projected at the same level of FY BSEB is expecting to commission many new 33/11 kv PSS during FY & FY This will required additional power to feed the consumers. Further from September onwards upto March, supply from hydel sources are expected to dry up. From April 2012 onwards, the demand for additional power from new 33/11 kv PSS will firm up. In the meantime, railways are likely to have traction sub-stations at Chapra, Jhajha, Hajipur, Samastipur etc. energised by March 2012 requiring additional 100 MW power from BSEB. In view of the same, BSEB has started 300 MW short-term power purchase through NVVNL from September 2011 at the rate of Rs per kwh. BSEB is planning to sign medium-term contract with NVVNL for MW A at the rate of Rs per kwh. Considering the 85% of availability, energy available during FY & FY is projected at the level of 1304 MU and 3351 MU respectively As per Renewable Purchase Obligation Regulations, 2010 notified on 16 th November, 2010, for FY & FY BSEB is required to purchase 2.5% & 4% of the total sales respectively from renewable energy sources. Out of the total Renewable purchase obligations (RPO), 0.5% & 0.75% need to come from solar energy sources for FY & FY respectively Based on the above discussed methodology, energy available to BSEB from the long term sources is summarized in the table below: BIHAR STATE ELECTRICITY BOARD 42

44 Review Petition for FY and ARR & Tariff Petition for FY Table 15 : Power Purchase from Long-term Sources in MU Source FY FY FY FY (Actual) (Approved) (RE) (Proposed) NTPC a) Farakka 3,146 2,889 2,889 2,889 b) Talchar 2,670 2,590 2,449 2,449 c) Kahalgaon 2,532 2,851 2,670 2,670 d) Kbunl NHPC a) Rangit b) Teesta PTC a) Chukka b) Tala 909 1, Others a) NEA b) BSHEPC c) NSSM d) RE purchase Solar e) RE purchase Other f) Short/Medium Term 136-1,304 3,351 Total 10,978 11,356 11,931 14, For projection of cost of power purchase for FY & FY , plant-wise actual cost incurred for power purchase is considered from April 2011 to August For short/medium term power purchase from NVVNL, rate of Rs per kwh & Rs per kwh is taken into consideration for FY & FY respectively. For renewable power purchase from solar, cost of Rs. 15 per kwh is projected. For renewable power purchase other than solar, cost of Rs is projected. The per unit power purchase cost of various plants from April 2011 to August 2011 is as given in the table below: BIHAR STATE ELECTRICITY BOARD 43

45 Review Petition for FY and ARR & Tariff Petition for FY Table 16 : Per Unit Cost of Power Purchase Sources FY Per Unit Price (Rs./kWh) ( Apr'11 to Aug'11) NTPC a) Farakka 4.36 b) Talchar 2.84 c) Kahalgaon 3.63 d) KBUNL 3.65 NHPC a) Rangit 1.54 b) Teesta 1.28 PTC a) Chukka 1.53 b) Tala 1.78 Others a) NEA 4.41 b) BSHEPC 2.49 c) NSSM 3.35 d) RE purchase Solar e) RE purchase Other 3.90 f) Short/Medium Term 4.09/4.31 PGCIL charges Therefor based on the projected power purchase quantum and per unit cost, BSEB revises its estimate for total power purchase and power purchase cost at MU & Rs Crores as against MU & Rs Crores approved by the H C BSEB projects the power purchase and power purchase cost of FY at MU and Rs Crores respectively. Total power purchase and power purchase cost projected for FY & FY is as given in the table below: BIHAR STATE ELECTRICITY BOARD 44

46 Review Petition for FY and ARR & Tariff Petition for FY Table 17 : Energy, per unit cost & total cost of Power Purchase Source FY (Actual) FY (Approved) FY (RE) FY (Proposed) Unit MUS CR Unit MUS CR Unit MUS CR Unit MUS CR NTPC a) Farakka , , , ,889 1, ,889 1,260 b) Talchar , , , , c) Kahalgaon , , , , d) KBUNL NHPC a) Rangit b) Teesta PTC a) Chukka b) Tala , Others a) NEA b) BSHEPC c) NSSM d) RE purchase Solar e) RE purchase Other f) Short/Medium Term , ,351 1,444 g) PGCIL charges Total 10,978 3,237 11,356 3,328 11,931 4,163 14,142 5, Overall power Available The total power available from external sources & own generation is summarized in the table below: Table 18 : Total Power Purchase in MU Source Unit FY (Actual) FY (Approved) FY (RE) FY (Proposed) Own Generation External Sources 10,978 11,356 11,931 14,142 Total 11,159 11,626 12,103 14, Energy Requirement & Energy Balance The gross energy requirement, energy availability and additional power purchase required because of actual and approved losses for BSEB is as follows: BIHAR STATE ELECTRICITY BOARD 45

47 Particulars Review Petition for FY and ARR & Tariff Petition for FY Table 19 : Energy Requirement & Energy Balance Unit FY (Approved by BERC) FY (As per BSEB Loss Projection) FY (As per BERC Loss Approved) FY (As per BSEB Loss Projection) FY (As per BERC Loss Approved) Energy Sales within State MU ,929 5,929 7,313 7,313 Sale from additional Power availability MU Energy outside State (Nepal) MU Sale in bileteral trade/ui MU Total Sales MU ,948 6,948 8,427 8,427 T&D Losses MU ,819 2,718 5,652 3,085 T&D Losses % 29% 42% 29% 41% 28% Energy Requirement MU ,768 9,667 14,079 11,512 Energy Availability Own Generation MU Total Power Purchase from long term sources MU ,931 11,931 14,142 14,142 Transmission loss in regional losses % 2.43% 3.31% 3.31% 3.31% 3.31% Transmission loss in regional losses MU Net Power Availability MU ,768 11,768 14,079 14,079 Disallowable Power Purchase MU 2,101 2, The H C consider the energy balance as shown above for FY and FY and accordingly approve the power purchase cost. Interstate transmission losses for the FY and FY are taken as 3.31% as per the actuals transmission losses booked till August The additional power purchase for the FY and FY as per the norms H 01 MUs and 2567 MUs respectively Additional Power Purchase Expenses In FY & FY , BSEB projects to under-achieve the T&D loss as T D H C BSEB would require to purchase additional power of 2101 MUs for FY and 2567 MUs for FY as indicated in Energy Balance. Based on the net power purchase rate, additional power purchase cost works out to Rs Crores and Rs Crores for FY & FY respectively. In various Tariff Orders, the Ho C consequent to additional power purchase on this account will not be passed on to the consumers but it has to be either borne by BSEB or it can seek the State BIHAR STATE ELECTRICITY BOARD 46

48 Review Petition for FY and ARR & Tariff Petition for FY Government support to provide funding for the same. BSEB would like to mention that the State Government is already providing financial assistance in the form of resource gap funding to bridge H Commission and actual expenses incurred by BSEB. The Hon C requested to reduce resource gap funding to the extent of such disallowances and only remaining amount need to be considered as subsidy available for consumers Operation & Maintenance Expenses (O&M) The Operation & Maintenance (O&M) expenses consist of three components: Repair and Maintenance Expenses Employee Expenses Administration & General Expenses Repairs and Maintenance Expenses go towards the day to day upkeep of the plant and network of the company and form an integral part o towards reliable and quality power supply as also in the reduction of losses in the system Employee expenses comprise of salaries, dearness allowance, bonus, terminal benefits in the form of pension & gratuity, leave encashment and staff welfare expenses Administration expenses mainly comprise of rents, telephone and other communication expenses, professional charges, conveyance and travelling allowances and other debits Repair & Maintenance Expenses (R&M) R&M expenses are dependent on various factors. The assets of BSEB are old and require regular maintenance to ensure uninterrupted operations. BSEB has been trying its best to ensure uninterrupted operations of the system and accordingly has been undertaking necessary expenditure for R&M activities. Further expansion BIHAR STATE ELECTRICITY BOARD 47

49 Review Petition for FY and ARR & Tariff Petition for FY of transmission and distribution system has contributed to increase in R&M expenses T H C FY -09 dated 26 th August, 2008 directed BSEB to include water charges & miscellaneous charges under the head R&M expenses and exclude from the head fuel cost. Accordingly BSEB has included actual water charges & miscellaneous charges under this head and not under the fuel cost head in this petition BSEB estimates R&M expenses of Rs. 95 Crores for FY same as approved H C T O FY -12 dated 01 st June, Over and above this as discussed in above paragraph, water and other misc. charges of Rs has been projected for FY Thus total R&M expenses expected to be incurred for FY is Rs Crores The Wholesale price index 1 has increased from in FY to in FY which is an increase of 9.56%. Considering the same, BSEB estimates that the R&M expenses will increase by 10% in FY from level of FY Thus R&M expense of Rs Crores is expected to be incurred in FY Whole sale price index data is taken from eaindustry.nic.in BIHAR STATE ELECTRICITY BOARD 48

50 Review Petition for FY and ARR & Tariff Petition for FY Table 20 : R&M Expenses Rs. In Crores Sl. No. Particulars FY FY FY FY (Actual) (Approved) (RE) (Projected) 1 Plant & Machinery Building Hydraulic works Civil Work Line cable & network Vehicles Furniture & fixtures Office equipments Operating expenses Total expenses Add cost of materials procured from Board's Hdqrs.for R&M Net Expenses Cost of water & Other Misc. Charges Total R&M Expenses charged The R&M expenses computed for Generation, Transmission and Distribution functions for FY and FY are in the same ratio as provided in the Tariff Order for FY dated 01 st June, BSEB revises its estimate for R&M cost for FY at Rs Crores as against Rs 95 Crores approved by H C BSEB projects the R&M cost for FY at Rs Crores. The detail of the same is provided in the table below: Table 21: Function-wise R&M Expenses Rs. In Crores Sl. No. R & M Cost FY FY FY FY (Actual) (Approved) (RE) (Projected) 1 Generation Transmission Distribution Total R&M Cost BIHAR STATE ELECTRICITY BOARD 49

51 Review Petition for FY and ARR & Tariff Petition for FY Employee Expenses BSEB is calculating its terminal liabilities on provisional basis and hence the amount of terminal benefits/retiral dues payable to the retired employees is not treated as expenditure for the year. The amount actually paid is adjusted against the provision made in the books of account for pension, gratuity and leave encashment However, in view of the severe financial crunch mainly on account of Tariff lower than Average cost of supply, BSEB has not been able to maintain separate fund for retiral liabilities as per the provisions made in the Annual Accounts hence, there has been a practice by BSEB to meet such unfunded liability out of the revenue realized from sale of energy during the period of incidence of discharge of such liabilities T H C ed such unfunded liability as a part of Aggregate Revenue Requirement of the Board in its tariff order dated , and Accordingly, the total figure under the head of employee expenses that reflects in the Annual Accounts of BSEB is only Rs Crores for FY However, BSEB would like to mention here that in addition to the above figure, an additional payout of Rs Crores was also made on account of unfunded terminal liabilities in FY Hence the Gross employee expenses for FY amounted to Rs Crores. The employee cost capitalized during the FY is Rs Crores and the net employee cost for FY is Rs Crores The Wholesale price index has increased from in FY to in FY which is increase of 9.56%. T H C escalation rate of 10% for employee cost in its Tariff Order for FY dated 1 st June, Considering the same, BSEB estimates that the employee expenses will increase by 10% in FY & FY from level of FY BIHAR STATE ELECTRICITY BOARD 50

52 Review Petition for FY and ARR & Tariff Petition for FY BSEB projects the employee cost for FY at Rs and payment for unfunded liabilities at Rs Crores. Employee cost to be capitalized for FY is projected at Rs Crores escalating at the rate of 10%. Thus the net employee cost for FY is projected at Rs Crores Over and above the current employee strength, BSEB has plan for additional recruitment in view of the increase in network and number of consumers in last couple of years. BSEB plans to recruit 1166 employees under various employee categories. BSEB has recruited some employee while recruitment for remaining employees is in progress. Based on the pay scale of various levels of employees, BSEB expects to incur additional cost of Rs Crores for new employees in FY and Rs Crores for FY The net employee cost (net of capitalization) for FY is given in the table below: BIHAR STATE ELECTRICITY BOARD 51

53 S.N Review Petition for FY and ARR & Tariff Petition for FY Particulars Table 22: Employee Expenses FY (Actual) FY (RE) Rs. In Crores FY (Projected) SALARIES & ALLOWANCES 1 Basic Pay+Special Pay 2 Dearness Pay Dearness Allowance House rent Allowance Fixed medical allowance Medical reimbursement charges Over time payment Other allowances Generation incentive Bonus Total Leave encashment Gratuity Commutation of Pension Workman compensation Ex- gratia Total Pension Payment 18 Basic Pension Dearness Pension Any other expenses Total Total ( ) Payment made for unfunded liabilities Increase in employee cost Due to New Recruitments Grand Total (25+26) Less: Employee cost capitalises Net Employee Cost BSEB revises its estimate for the Employee cost for FY at Rs Crores R C H C B EB employee cost for FY at Rs Crores. The allocation of employee expenses based on the annual accounts of FY across the three functions Generation, Transmission and Distribution is as following: BIHAR STATE ELECTRICITY BOARD 52

54 Review Petition for FY and ARR & Tariff Petition for FY Table 23: Function-wise Employee Expenses Rs. In Crores FY FY FY FY S.N Employee cost (Actual) (Approved) (RE) (Projected) 1 Generation Transmission Distribution Total Administration & General Expenses (A&G) A&G expenses for FY have been estimated by applying escalation on actual A&G cost of FY The 3 years CAGR based on the audited data of A&G expenses for the period FY to FY is 12%. BSEB has applied 12% escalation on A&G expenses of FY Thus, A&G expenses for FY & FY are projected at Rs Crores & Rs Crores respectively. Capitalization of A&G expense is projected for FY & FY in the ratio of A&G expenses and capitalization during FY A&G expenses to be capitalized are projected at Rs Crores & Rs Crores and thus the net A&G expenses post capitalization are projected at Rs Crores & Rs Crores for FY & FY respectively In addition, BSEB expects an additional A&G expense of Rs. 10 Crores to be incurred for outsourcing of metering and billing related activities for FY as H C FY -12 dated 01 st June, BSEB proposes to outsource all metering and billing related activities for all its consumers in FY and it has awarded the same to an agency at competitive rate of Rs 4.94 per consumer (work order of the same is provided as Annexure 1). Accordingly the metering, billing and related activities expense for FY is expected to be Rs Crores. BIHAR STATE ELECTRICITY BOARD 53

55 Review Petition for FY and ARR & Tariff Petition for FY Table 24: A&G Expenses Rs. In Crores Sl. No. Particulars FY FY FY (Actual) (RE) (Projected) 1 Rent, rates & taxes Insurance Telephone, postage &Telegrams Legal Charges Audit Fees Consultancy fees Technical fees Other professional charges Conveyance & travel expenses Others Freight Total expenses Less Capitalised Net expenses Add Prior period* Total A&G Expenses Metering, Billing and collection Total A&G Expenses Thus BSEB revises its estimate for A&G expenses FY at Rs Crores as against Rs Crores approved H C B EB A&G expenses for FY at Rs Crores. The allocation of A&G expenses based on the annual accounts of FY across the three functions Generation, Transmission and Distribution is as following: Table 25: Function-wise A&G Expenses Rs. In Crores S.N A&G Expenses FY (Actual) FY (Approved) FY (RE) FY (Projected) 1 G T Transmission Distribution Total BIHAR STATE ELECTRICITY BOARD 54

56 Review Petition for FY and ARR & Tariff Petition for FY Total Operation & Maintenance Cost BSEB revises its estimate for O&M cost at Rs Crores as against Rs C H C B EB O M FY at Rs Crores. The total O&M expenses for each of the Generation, Transmission and Distribution functions, calculated by summing up corresponding employee cost, R&M cost and A&G cost are as given in the table below: Table 26: O&M Expenses Rs. In Crores S.N FY FY FY FY O&M Expenses (Actual) (Approved) (RE) (Projected) 1 Generation Transmission Distribution Total O&M Cost , Capital Expenditure Plan of BSEB Generation At present BSEB has one operational thermal power plant, i.e. Barauni Thermal Power Station (BTPS) which has an installed capacity of 320 MW. BTPS being an old power plant, its capacity has been derated and presently it supplies only MW. The rest of demand of BSEB is met mainly from the Central sector allocations BSEB has taken up R&M work for Unit VI and VII under the RSVY scheme sanctioned by the Planning Commission, Government of India. The Government of India is providing grant for the R&M work of these units. The annual capital expenditure proposed for FY and FY under this scheme for BTPS is Rs. 153 Crores and Rs. 225 Crores respectively. Apart from that BSEB also expects to spend Rs. 70 Crores on the Infrastructure development works of BTPS Capacity extension of Muzaffarpur Thermal Power Plant (2x195 MW) has been sanctioned by the State government. A provision of Rs Crores and Rs Crores has been made for this purpose for FY and FY BIHAR STATE ELECTRICITY BOARD 55

57 Review Petition for FY and ARR & Tariff Petition for FY Nabhinagar Super Thermal Power Plant (3 x 660 MW) at Nabhinagar and Barun Blocks under Nabhinagar Power Generating Co. Pvt. Ltd (A joint venture of BSEB and NTPC) has been proposed at an estimated cost of Rs Crores for which BSEB has made a provision of Rs Crores and Rs Crores for FY and FY respectively Capacity extension of Barauni TPS (2X250 MW) has been sanctioned by the State Government under the State Plan at a total project cost of Rs Crores. The DPR of Barauni TPS extension has been prepared and the current estimated project cost is Rs Crores. A provision of Rs. 120 Crores & Rs. 200 Crores has been made in the FY and FY for BTPS extension project To obtain water from River Ganga for BTPS 2 X 250 MW Extension Plant, a provision of Rs. 50 Crores has also been made for FY Transmission BSEB has undertaken various works for transmission network capacity addition, augmentation and improvement for achieving its objective of making reliable power available across the State For strengthening of the sub transmission system in the state, BSEB proposes to undertake construction of new 132/33 KV GSSs at Jandaha, Tehta, Imamganj and Ekma, shifting of 132/33 KV Mithapur G.S.S and R.K. Nagar 33/11 KV P.S.S. from its existing location and construction of G.S.S. and P.S.S. at Karbigahiya In addition to the State sector schemes, BSEB has also undertaken capital investment works in its transmission segment under the RSVY Scheme sanctioned by the Planning Commission, Government of India. The Government of India is funding the capital investment proposed under these schemes through grant and the proposed outlay under this scheme for FY is Rs. 500 Crores. BIHAR STATE ELECTRICITY BOARD 56

58 Review Petition for FY and ARR & Tariff Petition for FY Distribution BSEB is already implementing many schemes for strengthening, augmenting and expanding its distribution network. BSEB would be continuing with various current Distribution strengthening programs in FY & FY These ongoing schemes include Transformer replacement, procurement of new transformers, replacement of old conductor of existing HT & LT line and construction of new HT & LT lines, PSS & bays For FY & FY , BSEB has proposed capital expenditure for new projects such as construction of 15 P.S.S and connecting lines, scheme for capacity augmentation and installation of additional power transformer and capacity augmentation of existing P.S.S. and, replacement of burnt and damaged transformers BSEB proposes to spend Rs Crores on its ambitious project of cent percent metering during FY In addition to the above schemes, BSEB has also undertaken distribution system strengthening capital works under Externally Aided Programs (EAP). EAP consists of targeted investment in strengthening of electrical distribution system of 7 towns in the State & associated transmission system improvement. The total cost of the project is about Rs. 719 Crores, out of which 14% i.e. Rs. 100 Crores will be funded by BSEB/GoB & the remaining fund will come from Asian Development Bank. For FY & FY , Rs. 20 Crores & Rs. 15 Crores respectively are proposed to be incurred under this scheme. Total CAPEX plan of BSEB The planned capital outlay of BSEB for FY is summarized below. BIHAR STATE ELECTRICITY BOARD 57

59 Review Petition for FY and ARR & Tariff Petition for FY Table 27: Planned Capital Expenditure of BSEB FY (Actual) FY (RE) Rs In Crores FY (Projection) S.N. Name of Scheme 1 Generation (a) Ongoing schemes , (b) BRGF Sub Total , , Transmission RSVY (i) BRGF (ii) Mahatma Gandhi Setu Cable crossing (iii) Ongoing Scheme Sub Total Distribution (i) Ongoing Scheme (ii) APDRP (iii) R-APDRP (iv) BRGF (v) ADB (vi) PMGY (vii) MNP (viii) Tal Diara (ix) Border Area (x) ACA (xi) RGGVY (xii) Deposit Work (xiii) Others works Others Capital works Sub Total , , Total 1, , , Table 28: Function wise summary of Planned Capital Expenditure of BSEB Rs. In Crores S.N. Planned Outlay FY (Actual) FY (Approved) FY (RE) FY (Projection) 1 Generation , , Transmission Distribution , , , Sub Total 1, , , , Capitalization of assets occurs from two sources; one from capital expenditure incurred during the year and another is from capital work in progress of previous BIHAR STATE ELECTRICITY BOARD 58

60 Review Petition for FY and ARR & Tariff Petition for FY year. In FY & FY , the capitalization rate of Capital Expenditure and opening balance of CWIP was 30% & 43% respectively. Even though there is increasing trend of capitalization, for FY & FY BSEB has considered capitalization rate 43%achieved in FY For FY , BSEB estimates capital addition of Rs Crores as against Rs Crores approved H C F FY -13, BSEB projects capital addition of Rs Crores. The Opening CWIP, Capital Expenditure, Capitalization and Closing CWIP for FY and FY are provided in the table below: Table 29: Details of Capitalization Rs. In Crores FY Generation Transmission Distribution Total Opening CWIP ,282 Capital Expenditure 1, ,334 3,263 Total Balance 1, ,047 4,545 Capitalization from CWIP Capitalization from Capex ,403 Total Capitalization ,954 Closing CWIP 1, ,167 2,591 FY Opening CWIP 1, ,167 2,591 Capital Expenditure 1, ,149 4,352 Total Balance 2,618 1,009 3,316 6,943 Capitalization from CWIP ,114 Capitalization from Capex ,871 Total Capitalization 1, ,426 2,985 Closing CWIP 1, ,890 3, BSEB has funded the capital expenditure for different ongoing & new schemes from various sources of funds like grants, consumer contribution, state government loans and loans from the financial institutions. BSEB has considered capitalization of various funds under three major source of funds namely grants, consumer contribution and debt in the following manner for FY & FY :- BIHAR STATE ELECTRICITY BOARD 59

61 Review Petition for FY and ARR & Tariff Petition for FY Table 30: Closing Capital Work In Progress Rs. In Crores FY Generation Transmission Distribution Total Capitalization ,954 Consumer Contribution Grant Debt ,667 FY Capitalization 1, ,426 2,985 Consumer Contribution Grant Debt ,290 2, Interest & Finance charges As per Tariff Regulations, 2007, BSEB can claim interest & financial charges for loans utilized for creating useful assets. Interest on working capital loan is approved on normative basis as provided in Tariff Regulations, 2007 and hence BSEB cannot claim interest on working capital on actual basis The total loan portfolio of BSEB includes loans raised for various purposes like Capital Expenditure, normal Working Capital requirement and meeting revenue deficit etc. The source wise loans used for creation of the assets are shown as under: BIHAR STATE ELECTRICITY BOARD 60

62 Review Petition for FY and ARR & Tariff Petition for FY Table 31: Loan Portfolio of Capital Expenditure of FY Rs. In Crores Sr. No. Institution Opening Closing Addition Repayment Loan Loan Interest 1 State Govt (a) Plan Loan 1, , REC RGGVY LIC L.D. bank under ARDC IDBI CEA PFC Public Bond Centrally Sponsored - Schemes ( Loans are not allocated to BSEB by State Government) Total 1, , Prior to notification of Tariff Regulations, 2007, retail tariffs of BSEB were not sufficient to meet its expenditures and hence BSEB was incurring losses. Consequently it was not able to repay its loans. BSEB has identified the loans used for capital expenditure and working capital and has requested for consideration of interest & financial charges only for the loans used for funding capital expenditure As per the provisions of Tariff Regulations, 2007, gross interest & financial charges for FY were Rs Crores and interest capitalised during FY was Rs. 25 Crores For calculation of interest and Finance charges for FY & FY , BSEB has considered the closing balance of loans of FY used for funding capital expenditure and the new loans proposed to be drawn during the year as per the indicated capitalization schedule of the proposed capital expenditure Based on the capitalization and its funding pattern, additional loan requirement has been worked out for FY & FY It is expected that all additional BIHAR STATE ELECTRICITY BOARD 61

63 Review Petition for FY and ARR & Tariff Petition for FY funding requirement will be met by the State Government at the rate of 13% per annum Total repayment of loans has been considered equal to the depreciation proposed for the year. Repayment of Loans other than state plan loans is proposed at 10% of the opening loan amount. The repayment of state plan loans have been considered equivalent to depreciation amount left after repayment of non-state loans For existing loans, prevailing interest rate has been considered while for new loans interest rate of 13% is proposed. Based on the same, BSEB revises its estimate of Interest and Finance Charges for FY to Rs Crores as against Rs Crores approved by the Commission. BSEB projects Interest and Finance Charges for FY at Rs Crores. Function-wise Interest & financial charges calculated are as shown in table below: Table 32 : Interest & Financial Charges Rs. In Crores S N Particulars FY FY FY FY (Actual) (Approved) (RE) (Projected) 1 Generation Transmission Distribution Total Depreciation Depreciation for FY & FY has been computed by BSEB by calculating depreciation on existing assets at weighted average rates of FY BSEB has not considered depreciation on assets which are not in use. BSEB has also not considered depreciation on assets which have depreciated upto 90% of its acquisition cost Terms & Conditions for determination of Tariff Regulation, 2007 of BERC provides that the depreciation shall be calculated annually, based on the straight line BIHAR STATE ELECTRICITY BOARD 62

64 Review Petition for FY and ARR & Tariff Petition for FY method over useful life of the asset and at rates prescribed by the Central Electricity Regulatory Commission. Assets capitalized during the year are distributed in various heads in the ratio of opening gross block of the respective year. For the new assets capitalized during the year, the depreciation for each of the functions has been projected on the basis of depreciation rates CERC s terms and condition of determination of tariff regulation, Accordingly BSEB revises its estimates for Depreciation cost for FY at Rs Crores as against Rs Crores H Commission. BSEB Projects Depreciation Cost for FY at Rs Crores. Function-wise depreciation is tabulated hereunder: Table 33: Depreciation charges Rs. In Crores FY FY FY FY Depreciation (Actual) (Approved) (RE) (Projected) Generation Transmission Distribution Total Interest on Working Capital The interest on working capital is to be allowed on the normative principles H C T C T Regulations, The considerations for the purpose of calculation of working capital and interest thereon along with references are summarized in the table below. Table 34 : Methodology for calculation of Working Capital Description Generation Transmission Distribution Norms for calculation Thermal WC = 2 months cost of coal + 2 months cost of secondary fuel oil + Maintenance spares (at 1% of GFA escalated at 6 % per WC = Maintenance spares ((at 1% of GFA escalated at 6 % per annum) + Receivables (2 WC=1 month O&M + Maintenance spares (at 1% of GFA escalated at BIHAR STATE ELECTRICITY BOARD 63

65 Review Petition for FY and ARR & Tariff Petition for FY annum) + 1 month O&M + Receivables (2 months of fixed and variable charges). months of transmission charges) + 1 month O&M 6 % per annum) + 2 months revenue Reference BERC Terms and Conditions for Determination of Tariff Regulations, Short-term prime lending rate of SBI as on 01/04/2011 was 13.00% and BSEB has computed interest on normative working capital on the basis of this normative rate and is as shown below: Table 35 : Interest on Working Capital Rs. In Crores FY Sr. No. Particulars Generation Transmission Distribution BSEB 1 2 months of Fuel Cost ( Primary & Secondary) month of O&M expenses of BSEB Receivables (2 months of fixed and variable charges of BSEB) ,042 4 Maintenance Spares (at 1% of GFA escalated at 6% per annum) Total Working Capital Requirement ,039 1,256 6 Interest Rate (SBI PLR as on 1st April, 2011) 13.00% 13.00% 13.00% 13.00% 7 Interest on Working Capital FY months of Fuel Cost ( Primary & Secondary) month of O&M expenses of BSEB Receivables (2 months of fixed and variable charges) ,163 1,316 4 Maintenance Spares (at 1% of GFA escalated at 6% per annum) Total Working Capital Requirement ,277 1,628 6 Interest Rate (SBI PLR as on 1st April, 2011) 13.00% 13.00% 13.00% 13.00% 7 Interest on Working Capital B EB H C T Regulations, 2007, BSEB is eligible for interest on working capital on normative T H C capital calculated on the normative basis as provided in the Tariff Regulations, 2007 while determining the ARR for FY The Ho C Rs & Rs Crores for FY & FY respectively. BIHAR STATE ELECTRICITY BOARD 64

66 Review Petition for FY and ARR & Tariff Petition for FY Return on Equity The basic principle of the cost plus framework for determination of tariff for regulated business is to consider efficient operational costs incurred by the business and allow reasonable return on capital employed for creation of assets required to run the regulated business. This return can be on equity / net assets / any other measures which the regulator may consider appropriate Bihar State Electricity Board is an integrated electricity utility constituted under Clause 5, Chapter III of The Electricity (Supply) Act, The Board is mainly funded through loans and grants from the Government of Bihar, loans and grants under specialized funding schemes of the Government of India and loans from commercial lending organizations BSEB would like to bring to the notice of the Hon ble Commission that in states like Jharkhand, Punjab, Chhattisgarh and Kerala, where integrated Boards like BSEB were / are operational, the Appropriate Commissions have allowed / allow for a reasonable return on equity despite the fact they have capital structure which is very much similar to that of BSEB and are mainly funded through loans/ grants from respective State Governments I B EB H C the reasonable return of 14% on capital grant provided by the State Government. As BSEB is a Board and not a company so equity contribution can come only by way of Grant and not equity. It is here necessary to mention that the return would allow BSEB to contribute its share of funding in various centrally funded schemes otherwise it would have to depend upon state government for support. This would limit the ability of BSEB to raise funds for investment in the sector. Hence it is requested to provide reasonable return on the capital provided by the State Government. The return on equity for the FY is as shown below: BIHAR STATE ELECTRICITY BOARD 65

67 Review Petition for FY and ARR & Tariff Petition for FY Table 36 : Return on Equity Rs. In Crores Generation Transmission Distribution BSEB FY Opening Grant ,099 1,524 Addition Closing Grant ,099 1,783 Rate of Return 14% 14% 14% 14% Return on Grant FY Opening Grant ,099 1,783 Addition Closing Grant ,207 2,241 Rate of Return 14% 14% 14% 14% Return on Grant T H C at Rs. 231 Crores & Rs Crores for FY & FY respectively Non-Tariff Income As per Annual Accounts, Non-Tariff Income of BSEB for FY is Rs Crores. Out of this amount, Delay Payment Surcharges from Consumers is Rs Crores. This amount has been collected from consumers who have not paid their bills in stipulated period provided by th H C T H C ARR from Tariff on accrual basis i.e. amount billed by BSEB. However, BSEB is not able to collect the entire amount and the revenue collected (cash basis) is lower than the amount billed. In order to fund this gap (receivables so created), BSEB has to borrow higher amount for its increased working capital requirement. The delayed payment surcharges are payable by the consumers on such unpaid amounts. In the Annual Accounts the revenue (on the income side) is on billed basis (accrual) but the borrowings for increased working capital also get reflected as increased interest cost under the Interest and Finance Charges account. Thus in a way Delayed Payment surcharges are sources of fund for funding this increased BIHAR STATE ELECTRICITY BOARD 66

68 Review Petition for FY and ARR & Tariff Petition for FY T H C the working capital requirement though computed on normative basis but does not take into consideration the increased receivable (beyond the norms of 2 month) amount that has to funded by BSEB. If BSEB were to collect the entire amount that it has billed there would be no income from surcharge (no receivable H C DP B EB on this account is doubly penalized. The income is considered on accrual basis and simultaneously DPS is also considered in the ARR. In view of this BSEB requests the H C DP funding increased working capital requirement for receivables created on account of uncollected amount not recognized (in computing working capital requirement and Revenue) H C ARR For meter/service rent and misc. receipt has been projected based on 3 years CAGR. FY has been considered as the base year for projecting income under this head for FY & FY For Misc. charges (except PLEC) has shown abnormal growth in last 3 years. Hence, growth rate of 10% is projected for the same on actual of FY or projecting income under this head for FY & FY Income from Trading, Rebate & discount received and incentive on timely payment of loan has shown negative growth in last 3 years. Hence, income under this head has been considered at the level of FY for FY & FY Considering that the same trend will be applicable on incentive on timely payment of power purchase bills, no increase has been proposed for in FY & FY State Government provide funds for capital expenditure at one go and same is incurred based on the requirement by BSEB. Till the timely payments are made for capital expenditure, funds are deposited into banks and on which BSEB gets interest. In FY , BSEB earned more than Rs. 85 Crores as interest on such BIHAR STATE ELECTRICITY BOARD 67

69 Review Petition for FY and ARR & Tariff Petition for FY bank deposits. It may be pertinent to mention here that BSEB has to pay interest on such funds to the State Government at 13% interest rate from the time the funds are released to BSEB. However, th H C allows interest on those funds only which get capitalized with the commissioning of the assets created out of such funds. The interest paid to State Government on un-utilised funds H C whereas interest earn is considered in the Aggregate Revenue Requirement for the year. BSEB pays the interest on such unutilized fund to the State Government from the income earned from deposits of such fund. This amounts to double penalization of BSEB. In this regard H C to consider income from interest on un-utilized funds while determining ARR for FY & FY Further BSEB would improve the utilization of funds received from the State Government. In view of the above reasons, no income is projected from interest on bank deposits for FY & FY Accordingly, BSEB revises its estimate for Non-tariff income at Rs Crores as against Rs Crores H C B EB Non-tariff Income for FY at Rs Crores. BIHAR STATE ELECTRICITY BOARD 68

70 Review Petition for FY and ARR & Tariff Petition for FY Table 37 : Non-Tariff Income Rs. In Crores Sr. No. Particulars FY FY FY (Approved) (RE) (Projected) 1 Meter/Service rent Late payment surcharge Theft / pilferage of energy Misc. receipts Misc. charges (except PLEC) Wheeling charges Interest on staff loans & advance Income from trading Income from welfare activities Rental Tender Registration fee Interest of Bank Deposit Rebate & discount received Incentive for timely payment of installment 1.08 against loan to PFC Incentive for timely payment of installment - against power purchase bills Total Income Add Prior period income Total Non tariff income Past Recoveries BSEB has filed true-up petitions for period FY to FY based on audited annual accounts & Review Petition for FY based on annual accounts adopted by the Board of BSEB Based on the same, BSEB has computed the revenue gap for respective years and H C along with its carrying cost. As per Terms & Conditions of Tariff Regulations, 2007, the H Commission is requested to allow carrying cost of the same. Considering the financial health of BSEB, only State Government is providing working capital loan B EB H H C ion is requested to allow BSEB to recover its Revenue Gap with a carrying cost at the rate of 13%. The detail of the same is provided in table below: BIHAR STATE ELECTRICITY BOARD 69

71 Review Petition for FY and ARR & Tariff Petition for FY Table 38 : Past Recoveries of BSEB Rs. In Crores FY 07 FY 08 FY09 FY 10 FY 11 FY 12 FY 13 Opening Balance , , , , Revenue Gap of the Year Closing Balance , , , , , Interest Rate 13% 13% 13% 13% 13% 13% 13% Interest for the Year Total Recovery in FY , Aggregate Revenue Requirement The aggregate revenue requirement proposed for the integrated BSEB for FY & FY is provided below: Table 39 : Aggregate Revenue Requirement for BSEB for FY & FY Rs. In Crores Sr. No. Particulars FY FY FY (Approved) (RE) (Projection) 1 Cost of fuel Cost of Power Purchase 3,328 4, , Employee costs (Net) R & M Adm. & Gen. Expenses Depreciation Interest & Financial Charges Interest on Working Capital Return on Equity Aggregate Revenue Requirement ( 1 to 9) 4,706 6, , Add: Recovery of Revenue Gap of past filing - - 5, Less: Disallowable Power Purchase Cost Less: Non tariff income Net Aggregate Revenue Requirement ( ) 4,538 5, , The ARR proposed for the Generation, Transmission and Distribution function of BSEB is summarized in the table below. It may be noted that the Generation function accounts for 7.23%, Transmission function for 4.43% and the Distribution function accounts for B EB ARR BIHAR STATE ELECTRICITY BOARD 70

72 Review Petition for FY and ARR & Tariff Petition for FY Table 40 : Function-wise Aggregate Revenue Requirement for FY12-13 Rs. In Crores Item Generation Transmission Distribution BSEB Power Purchase - - 5, , Fuel Expenses Repair & Maintenance Employees Cost Admin & General Expenses Depreciation Interest & Finance Charges Interest on Working Capital Return on 14% Aggregate Revenue Requirement , , % of total BSEB ARR 7.23% 4.43% 88.33% % Revenue from Sale of Power at Existing Tariff for FY The category wise estimated revenue based on the projected sales and existing tariff structure works out to Rs Crores in FY is as shown in the table below: BIHAR STATE ELECTRICITY BOARD 71

73 Review Petition for FY and ARR & Tariff Petition for FY Table 41 : Revenue from sale of power at Existing Tariff Premium Tariff Areas Rest of Bihar Total Bihar Revenue Revenue Average S. No. Category Energy Energy Energy Revenue (Rs. (Rs. Realisation Sale (MU) Sale (MU) Sale (MU) (Rs. Crores) Crores) Crores) (Rs./ Unit) 1 Kutir Jyoti (Rural) Kutir Jyoti (Urban) D I R , , D II Single phase , Three phase DS-III ND I R ND II U Single phase Three phase ND III LTI I LTI II Public Water Works IA I P IA II G L I M L II U HT I HT II HT III HTSS RT I Total 1, , , , , Revenue from sale to Nepal & UI As per annual accounts of FY , BSEB sold 555 MU of energy to Nepal at rate of Rs per kwh. BSEB projects the same trend to continue for FY & FY Revenue from sale of power to NEA for FY & FY is projected at Rs Crores each Based on the actuals of FY , BSEB is projecting sale under UI for FY & FY BSEB projects same level of sale under UI of FY for the FY & FY BSEB has projected its revenue from sale of power under UI assuming that the average price of Rs per unit same as of FY Revenue from sale of power under UI for FY & FY is projected at Rs Crores each. BIHAR STATE ELECTRICITY BOARD 72

74 Review Petition for FY and ARR & Tariff Petition for FY Revenue from sale of Additional Power As discussed earlier, additional hours of power supply will be provided to towns where premium tariff is proposed, industrial categories on LT line, urban areas, PWW and Street Lights. This supply will be limited to certain categories and have revenue will be projected based on the average revenue realisation rate of such categories. BSEB is projecting additional revenue of Rs Crores at existing tariff rates & Rs Crores at proposed tariff rates for FY Resource Gap funding from State Government T H C A R R (ARR) of BSEB had/has fixed the T&D loss achievement target for each financial year while actual losses of the BSEB has always remained much higher than the prescribed T&D trajectory of losses due to various reasons including the fact that large number of consumers of BSEB are unmetered or having defective meters. Further, dilapidated distribution network of BSEB have contributed to higher T&D losses of BSEB. Any increase in the quantum of power purchase also has led to enhanced T&D loses for BSEB. Massive and large scale electrification of villages under RGGVY scheme leading to expansion of rural distribution network too has contributed to the T&D losses of BSEB to greater extent Though the BSEB has taken up re-conductoring of old and dilapidated conductors and large scale of metering of unmetered consumers as mission items in a time bound manner, even then actual T&D loss of BSEB is much higher than the prescribed T&D loss trajectory of BSEB for periods under reference. BSEB has disallowed 815 MU & 800 MU of power purchase by BSEB to the extent of difference in actual T&D loss of BSEB vis-à-vis trajectory of T&D losses allowed by H C B EB different sources and incurred expenditure in its review order for FY & review order for FY BIHAR STATE ELECTRICITY BOARD 73

75 Review Petition for FY and ARR & Tariff Petition for FY T H C T O FY dated 1st June, 2011, while disallowing the request of BSEB for re-fixing higher T&D loss reduction trajectory, at para obse B EB able to meet loss reduction trajectory due to implementation of Government sponsored RGGVY scheme, then it should ask for subsidy to compensate for the T D BSEB being a Government of Bihar entity, the un-bridged expenditure gap has to H C the different categories of consumers or to be met as subsidy/resource gap by the G B H C its Tariff Order for FY dated 1st June, 2011 in para As the actual expenditure has always remained more than the revenue collected due to higher T&D losses as compared to T&D loss trajectory allowed by the H C T gap cannot be carried forward un-bridged and has to be accounted for by some means. Accordingly, BSEB had approached the Government of Bihar for financial assistance to bridge the resource gap arises out of increasing T&D losses. The Government of Bihar has provided financial assistance to BSEB to meet the aforesaid resource gap which was Rs. 30 Crores per month up to FY and was enhanced to Rs. 60 Crores per month from FY onwards. This resource gap was further enhanced to Rs. 90 Crores per month in FY to meet ever increasing resource gap on account of expanding rural network and consequent increasing T&D losses beyond allowed trajectory of T&D losses T H C T O FY -12 dated 1 st June, 2011 in point no mentioned that if BSEB is not able to achieve T&D loss trajectory because of government sponsored schemes then it should ask for subsidy to compensate for the increased T&D losses. BSEB would like to mention that this resource gap funding is given for the same. BIHAR STATE ELECTRICITY BOARD 74

76 Review Petition for FY and ARR & Tariff Petition for FY Energy Department of the Government of Bihar has in its letter no dated 19/09/11 clarifies priorities for use of this resource gap funding. This resource gap funding will be first use to fulfil financial losses arises on account of actual T&D losses as against approved T&D losses. Remaining amount of resource gap funding will be used for Agriculture and Rural area consumers BSEB is expecting T&D losses of 42% and 41% as against approved levels of 29% and 27.5% for FY & FY respectively. BSEB has worked out higher power purchase cost of Rs Crores & Rs Crores on account of T D H C for FY & FY respectively BSEB is expecting Rs Crores per annum of resource gap funding from State Government for FY & FY BSEB has reduced the higher power purchase cost on account of higher losses than the normative levels fixed by the H C from the Aggregate Revenue Requirement. At the same time, BSEB has also reduced resource gap funding by the same amount and now only remaining amount of Rs Crores & Rs may be considered as available for reducing the Aggregate Revenue Requirement to arrive at the revenue gap for FY & FY F H C the same from the Resource Gap funding support available from the State Government. The balance amount of Resource gap funding may be considered as available for reducing the Aggregate Revenue Requirement to arrive at the revenue gap for FY Revenue Gap at Existing Tariff for FY Based on the above proposed Aggregate Revenue Requirement and Revenue from various sources, the revenue gap at existing tariff for FY is assessed at Rs Crores. The same has been outlined in the table below: BIHAR STATE ELECTRICITY BOARD 75

77 Review Petition for FY and ARR & Tariff Petition for FY Table 42 : Estimated Revenue Gap for FY at Existing Tariff Rs. In Crores S. N. Particulars FY Net revenue requirement 11, Revenue from retail sale at existing tariff 2, Revenue from additional sale Revenue from sale of power to Nepal Revenue from sale of power in UI Gap( ) 8, Grant from Govt Revenue Gap (6-7) 8, Revenue from Sale of Power at Proposed Tariff for FY The category wise estimated revenue based on the projected sales and proposed tariff structure works out to Rs Crores in FY is as shown in the table below: Table 43 : Revenue from sale of power at Proposed Tariff Premium Tariff Areas Rest of Bihar Total Bihar Revenue Revenue Average S. No. Category Energy Energy Energy Revenue (Rs. (Rs. Realisation Sale (MU) Sale (MU) Sale (MU) (Rs. Crores) Crores) Crores) (Rs./ Unit) 1 Kutir Jyoti (Rural) Kutir Jyoti (Urban) D I R , , D II Single phase , Three phase DS-III ND I R ND II U Single phase Three phase ND III LTIS Public Water Works IA I P IA II G L I M L II U HT I HT II HT III HTSS RT I Total 1, , , , , , BIHAR STATE ELECTRICITY BOARD 76

78 Review Petition for FY and ARR & Tariff Petition for FY Revenue Gap at Proposed Tariff Based on the above proposed Aggregate Revenue Requirement and Revenue from various sources, the revenue gap at proposed tariff is assessed at Rs Crores. The same has been outlined in the table below: Table 44 : Estimated Revenue Gap for FY at Proposed Tariff Rs. In Crores S. N. Particulars FY Net revenue requirement 11, Revenue from retail sale at proposed tariff 4, Revenue from additional sale Revenue from sale of power to Nepal Revenue from sale of power in UI Gap( ) 6, Grant from Govt Revenue Gap (6-7) 6, Regulatory Asset As is clear from the above table, even after proposing a differential tariff hike in Premium areas and rest of Bihar, the BSEB is unable to meet its total gap. BSEB understands that any further increase in the tariff in FY would lead to a tariff shock to the consumers. Also, a vast majority of consumers in Bihar reside in rural areas with low paying capacity. The BSEB does not want to pass on a tariff shock to the consumers and would request the regulatory to provide for the above mentioned gap of Rs Crores by means of either creation of regulatory assets, which may then be gradually recovered from the consumers in next 3 year G B T H C also provide for subsidy from the GoB in case of specific subsidized categories being supplied at extremely low tariff. BIHAR STATE ELECTRICITY BOARD 77

79 Review Petition for FY and ARR & Tariff Petition for FY Tariff Proposal 3.1. Tariff Design In this chapter of the petition, BSEB has highlighted the changes proposed by it in the existing tariff schedule. The proposed changes relate to additions/modifications of tariff categories, sub-categories, applicable terms & conditions of tariff for both LT and HT categories and miscellaneous charges. This proposal for change is for redressal of practical difficulties faced by BSEB in implementing existing tariff schedule and demand for new services emerging consequent to load growth consequent to economic development in Bihar. For exact wordings of the proposed changes it would be desirable that the tariff schedule annexed with this petition may be referred to. The proposed changes have been discussed under the following heads: Creation of new categories Creation of new sub-categories Changes in terms and conditions of tariff 3.2. Creation of new tariff category Construction Power (CP): BSEB has proposed the creation a new tariff category for HT consumers seeking construction power at HT voltage levels for their plants. This tariff category is proposed to be applicable to all such consumers who avail supply for construction or fabrication of plants at 11 kv and above Creation of new sub-categories within existing tariff categories BSEB has proposed for the creation of following new sub-categories of consumers: LT Supply Temporary Category: Consumers seeking temporary connections for electricity usages under Domestic Service, Non-Domestic Service, Low Tension Industrial service, Public Water works and HT category will be eligible. Applicability of the BIHAR STATE ELECTRICITY BOARD 78

80 Review Petition for FY and ARR & Tariff Petition for FY temporary connection is restricted to certain categories only as compared to existing structure where all consumers are eligible. Temporary connection is proposed to provide as unmetered connection and metered connection for LT category of consumers while HT category of consumers will get metered connection only. The creation of unmetered temporary category under these categories has been necessitated on account of consumers seeking temporary connections for (i) Melas, Festivals & Exhibitions (ii) Puja Pandals (iii) Marriages and other religious/social functions and (iv) For providing civic amenities during other social, political, cultural and industrial functions of purely temporary nature etc. The fixed charges and minimum energy charges have been proposed on per day basis taking into account the limited period for which these connections are sought. The proposal for fixed/demand and energy charges is nearly two times of the highest slab of the energy and fixed/demand charges applicable to consumers with permanent connection under that tariff category. This has been done to account for the increased cost of power purchase and inability of licensee to recover the same under FPPCA charges from temporary consumers at subsequent date. No FPPCA charges are proposed to be levied on these categories of consumers due to the temporary nature of the connections. The maximum period for which these connections can be availed is proposed to be six months from existing level of 1 year. The other terms and conditions would be as applicable to the respective tariff category NDS-IV: BSEB has proposed for the introduction of new sub-category (NDS-IV) under the existing NDS tariff category for electricity used for the purpose of exclusive commercial advertisements for hoardings and other similar connections by/through advertising agencies. This category has been proposed due to its separate & distinct nature of use of electricity and need to regulate such category of consumers in appropriate way. BIHAR STATE ELECTRICITY BOARD 79

81 Review Petition for FY and ARR & Tariff Petition for FY LTIS: BSEB has proposed the merger of LTIS-I and LTIS-II sub-categories. There would be uniform per HP fixed and minimum energy charges. The merger would do away with the requirement of migration from one sub-category to the other on change in connected load. This would facilitate the consumers to increase or decrease the connected load with the requirement of the business without change in sub-category. Further this would do away with the disincentive to consumers/employees of BSEB to conceal the actual connected load to prevent the shift from lower tariff category to the higher tariff category LTIS (Demand Based Tariff): All new consumers under Three Phase LTIS shall come under this tariff category only. Corresponding changes (necessitated on account of merger of LTIS-I and LTIS-II) have been proposed for this tariff subcategory. BSEB would like to encourage its consumers to opt for this sub-category as this would do away with the requirement for computation of connected load. The Consumer would be required to pay according to demand imposed on the system rather than on the basis of connected load. However, existing consumers under LTIS-I & LTIS-II tariff shall have option to continue under LTIS category. HT Supply RTS: BSEB has proposed to introduce tariff for supply at higher than 132 kv voltage level. BSEB expects new Railway connections at higher than 132 kv voltage level. 15 paise/unit rebate is proposed for availing power supply at voltages higher than 132 kv. The other terms and conditions applicable to supply at 132 kv voltages will be applicable Changes in existing terms and conditions of tariff BSEB has proposed some changes in the existing terms and conditions of tariff applicable to LT and HT consumers. The proposed changes are as follows: BIHAR STATE ELECTRICITY BOARD 80

82 Review Petition for FY and ARR & Tariff Petition for FY LT Consumer Kutir Jyoti Consumers: During the field survey it emerged that some Kutir Jyoti consumers consume in excess of the consumption limit of 30 units per connection. This excess consumption could be either due to increase in living standards of such consumers or due to one-off occasions like marriage, other social functions etc in the family. However any consumption in excess of the limit constitutes violation of the condition of this tariff category. In order to address such situations it is proposed that consumption in any month in excess of 30 units (per month) will be charged at mentioned tariff rates. However if the maximum consumption upto 360 units is detected during the period of preceding 12 months (in addition to existing conditions of connected load), such consumers will then be treated as DS-I or DS-II consumer as the case may be. Provision has been made for consumption of more than 30 units during the month by providing tariff slabs for KJ category. Fixed charges are proposed for KJ- Metered category of consumers. Monthly minimum consumption is changed to 25 units per month keeping in view the increased hours of supply and increase in specific consumption of this consumer category Fixed Charges for DS-I & NDS-I category: BSEB has proposed the introduction of fixed charges per connection to DS-I (Metered) & NDS-I (Metered) consumer categories. This proposal is in line with the prudent tariff practices for recovery of fixed costs of the Utility Change in fixed charges for DS-II & NDS-II category: BSEB has proposed change in the fixed charges to remove differential tariff treatment to single phase and three phase consumers. This proposal is in line with the prudent tariff practices for recovery of fixed costs of the Utility Change in coverage of NDS-III: BSEB proposes change in coverage of NDS-III consumer category for better clarity and appropriate use of this subsidized consumer category. This revised definition of NDS-III will be as under and change proposed is shown in bold: BIHAR STATE ELECTRICITY BOARD 81

83 Review Petition for FY and ARR & Tariff Petition for FY This is applicable for all places of worship like temples, mosques, gurudwaras, churches, sanctum- sanctorum of religious places and burial /crematorium grounds. If any portion of the premises is used for other purposes, a separate connection shall be taken for that portion and NDS-II tariff schedule shall be applicable for that purpose Change in nomenclature of demand based tariff category: BSEB has proposed changed in the nomenclature of demand based tariff category from sub-category name (A) to sub- D I nomenclature of D for demand based tariff Monthly Minimum Charges: BSEB has proposed increase in the MMC for DS-I (Metered), DS-II (Metered), DS-III (Metered), LITS (D) and IAS-I (Metered) keeping in view the increased hours of supply and increase in specific consumption of these consumer categories. This has also been done to ensure reasonable recovery of fixed charges incurred by BSEB which is not being recovered fully. For FY , BSEB has proposed total ARR of Rs Crores out of which Rs Crores are of fixed nature while Rs Crores will be used for power purchase and fuel cost of own generation. Currently, BSEB is able to recover only 27% & 40% of fixed costs from demand/fixed charges based on the existing tariff & proposed tariff respectively. In such scenario, it is very much necessary to levy MMC on consumers so that BSEB can at least recover its fixed cost Option to change to HTS-I category: BSEB has proposes that LTIS and PWW consumers having connected load of more than 79 HP to 99 HP may avail supply under HTS-I category at 11 kv. By doing so, both the parties (consumer and BSEB) will get benefit. Consumers receive better quality and reliability of supply whereas BSEB is able to control its losses (transformation and I 2 R losses) and system overloading The LT terms and conditions of tariff require LT consumers whose connected load includes motors of 3 HP and above to install shunt capacitors at the motor BIHAR STATE ELECTRICITY BOARD 82

84 Review Petition for FY and ARR & Tariff Petition for FY terminals for maintaining power factor at 90% and above. BSEB proposes to exclude domestic consumers and single phase non-domestic consumers from the applicability of this clause of the tariff condition as such consumers do not have the knowledge to compute the capacity of capacitor required and wherewithal to maintain required capacitors. Applicable to both LT and HT consumers Delayed Payment Surcharge (DPS): As per the existing terms and conditions the consumer is required to pay surcharge on the entire principal amount even if the consumers has made partial payments. BSEB has proposed to replace the word principal with balance so that the consumers who pay partial bill amount will be required to pay DPS on the remaining amount and not the entire amount. This would incentivize consumers to pay their bills (even partial) and help BSEB in improving its cash collection. This change is being proposed for both LT and HT consumer categories Additional of clause in Defective/ Damaged/ Burnt meters supply: A new clause has been added in the tariff schedule for defective/ damaged/ burnt meters supply as provided under: In case of newly installed meter of a consumer becoming defective/ damaged/ burnt after installation of meter and consumption of last 12 months is not available, the consumer shall be billed provisionally on the basis of MMC or the average consumption computed on the basis of past consumption whichever is higher. The final billing of the consumer for the period of provisional billing shall be done on the basis of average metering reading of the consumer for the subsequent 12 months after installation of healthy meter Interest on Advance Payment: BSEB proposes to introduce interest on advance payment made by consumers on outstanding balance on month to month basis at Bank rate notified by RBI from time to time. This will encourage consumers to pay bills in advance which will help BSEB in better and timely recovery of revenues. This is proposed in line with clause no (2) of Bihar Electricity Supply Code. BIHAR STATE ELECTRICITY BOARD 83

85 Review Petition for FY and ARR & Tariff Petition for FY Grace Period: The provision for a grace period of 10 days for payment of bills has been done away with. The same has been proposed as the implementation of grace period not only distorts the revenue cycle of the BSEB but also causes problems in implementation of tariff as the billing software of BSEB does not have provision for the same Penalty for bounced cheque: BSEB has been encouraging consumers to pay bills through cheques as well. However it has been observed that some consumers have been misusing this facility. To curb this intentional misuse of this facility it is proposed that in case the cheque given by the consumer against the energy bills is dishonored by the bank then a penalty will be payable by such consumer. Action against such consumers shall be taken as per clause 7.4 (h) and 10.9 of Bihar Electricity Supply Code. Clause 7.4 (h) and 10.9 of BESC which provides inter-alia (h) After a minimum period of seven days, incase of dishonouring of the cheque by the Bank (non In case of non-realisation of cheque, the licensee shall have right to increase the security deposit from the consumers. The licensee shall also have the right to take steps such as levying cheque dishonour charges or initiating other actions as per law besides insisting on future payment by demand draft or by cash Supply Premium payable by consumers in notified areas: BSEB has proposed to procure additional power purchase in FY to improve the supply situation B A H C FY 1-12, BSEB has proposed a Supply Premium to be payable by consumers who receive additional hours of supply. It is proposed that all LT consumers except Kutir Jyoti and Agricultural and HTS I consumers who lie in such areas to which BSEB intends to supply continuous power atleast for 600 hours in a month. The continuous BIHAR STATE ELECTRICITY BOARD 84

86 Review Petition for FY and ARR & Tariff Petition for FY supply mean normal supply excluding the duration of grid failure, plant failure of power supplier, any force majeure condition, scheduled shut down, emergent H C section 23 of Electricity Act, 2003 will be required to pay 10% supply premium on demand/fixed and energy charge and in MMC. Which provides inter-alia D D L if the appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, Areas to which BSEB intends to supply electricity close to 600 (six hundred) hours will be notified by BSEB and the proposed Supply Premium will be levied after such notification Voltage surcharge: BSEB has proposed voltage surcharge on applicable energy and demand charges for consumers which receive supply at voltage levels lower than the applicable voltage levels. BSEB would like to penalize the consumers to receive supply at lower voltage levels. Receiving supply at lower voltage level is not beneficial to both consumers and BSEB. By taking supply at appropriate voltage level, Consumers receive better quality and reliability of supply whereas BSEB is able to control its losses (transformation and I 2 R losses) and system overloading. The surcharge will be symmetrical and will be 7.5% of the energy and demand charges applicable to tariff category to which the consumer belongs. This surcharge shall be applicable to: DS consumer category NDS consumer category LTIS consumer category PWW consumer category HTS-I and HTS-II consumer categories BIHAR STATE ELECTRICITY BOARD 85

87 Review Petition for FY and ARR & Tariff Petition for FY Accounting of Partial payment: BSEB has proposed following order of priority for accounting of the partial payment made by the LT and HT Consumers Statutory taxes and duties Additional Security DPS on arrears Principal arrears Current bill Applicable to HT consumers Reclassification of contract Demand: As per the existing tariff category classification, the HT consumer as per its contract Demand will fall under the following tariff category: HTS- I: Consumers with contract demand between 75 KVA and 1500 kva HTS-II: Consumers with contract demand between 1000 kva and kva HTS-III: Consumers with contract demand of 7.5 MVA As evident from the above there is a significant overlap in the allowable contract demand. A consumer with 1000 kva can seek connection both under HTS-I and HTS-II consumer categories. Similarly a consumer with contract demand of 7.5 MVA can seek connection both under HTS-II and HTS-III tariff categories. To remove this anomaly BSEB proposes following changes to the voltage range for applicable contract demand: HTS- I: Consumers with contract demand between 75 KVA and 1500 kva HTS-II: Consumers with contract demand between 1501 kva and 10 MVA HTS-III: Consumers with contract demand of more than 10 MVA Further it is also proposed that the consumers who get affected because of this reclassification of contract demand can continue to avail supply at existing voltage levels. BIHAR STATE ELECTRICITY BOARD 86

88 Review Petition for FY and ARR & Tariff Petition for FY MMC for HTS-I, HTS-II & HTS-III: BSEB proposes to restore minimum base energy charge calculation on monthly basis from revised methodology in last Tariff Order for FY dated 1 st June, BSEB is purchasing additional power supply to fulfil the requirement of the consumers and hence it is necessary that consumer T H C introduced calculation of minimum base energy charge on annul basis in view of the shortage in the power supply. Now, BSEB is purchasing additional power to meet requirement of the consumers and giving enhanced power supply to all such consumers. BSEB should be compensated for non-availment of supply by the consumers. This has also been done to ensure reasonable recovery of fixed charges incurred by BSEB which is not being recovered fully. For FY , BSEB has proposed total ARR of Rs Crores out of which Rs Crores are of fixed nature while Rs Crores will be used for power purchase and fuel cost of own generation. Currently, BSEB is able to recover only 27% & 40% of fixed costs from demand/fixed charges based on the existing tariff & proposed tariff respectively. In such scenario, it is very much necessary to levy MMC on consumers so that BSEB can at least recover its fixed cost. Hence, it has become necessary for BSEB to seek restoration of minimum base energy charge calculation on monthly basis Increase in HTSS surcharge: BSEB proposes surcharge of 7.5% on demand and energy charges in place of existing level of 5% for availing supply at 11 kv. This change is proposed to make surcharge in line with the other consumer categories. As can be seen in HTS-I consumer category that 7.5% surcharge on the demand and energy charges is applicable for availing supply at 6.6 kv Load Factor & Penalty of RTS: BSEB proposes to increase load factor of 50% in place of existing level of 25% for calculation of minimum base energy. BSEB has conducted study and find that the RTS consumer category is working at the average load factor of more than 50% and hence it is proposed to increase load factor for calculation of minimum base energy. If in any month the recorded maximum demand of the consumer exceeds 110% of the contract demand, that BIHAR STATE ELECTRICITY BOARD 87

89 Review Petition for FY and ARR & Tariff Petition for FY portion of the demand in excess of the contract demand will be billed at twice the normal charges Power factor rebate: BSEB has proposed changes in the existing provision for levy of power factor rebate. The consumer would be required to maintain average monthly power factor of the supply between 0.90 and The consumer will be entitled to receive rebate at rates indicated in the table below: For each increase of 0.01 in power factor above (zero point five) percent on demand and energy charges (Actual recorded) However if the monthly power factor falls below 0.90 the existing provisions for levy of surcharge will be applicable; Transformer Capacity: BSEB proposes insertion of additional clause in transformer capacity. The proposed change is as shown below: Such cases shall be dealt as per the provisions of Bihar Electricity Supply Code, The contract demand of such HT consumer, except RTS consumers, shall be revised to 2/3 of the transformer capacity. For RTS consumer, contract demand shall be revised to 1/ 2 of the transformer capacity Cap on Overall Rebates: BSEB proposes cap on overall rebates admissible to consumer at 4% to limit the revenue outflow. This will help in reduction of revenue gap Withdrawal of rebate: In order to incentivise HT consumers for timely payments of their bills. It is proposed that the consumer will not be entitled to claim any rebate under any head in case of default of payment by the due date. Miscellaneous & General Charges BSEB has proposed revisions to existing miscellaneous charges in view of increase in cost of material and labour. Further following charges are being proposed for BIHAR STATE ELECTRICITY BOARD 88

90 Review Petition for FY and ARR & Tariff Petition for FY activities currently not part of the existing schedule of miscellaneous charges. The proposed additions are as follows: Charges for Tatkal Connection: BSEB in the past has received numerous requested from its consumers for providing tatkal connections. In view of this facility demanded by its consumers, BSEB proposes this scheme under which all consumer categories other than High Tension and Railway may avail benefit of this scheme. The General and Miscellaneous charges for the Tatkal connection will be 2 (Two) times of the charges approved under the head general and miscellaneous charges. The connection under this scheme shall be released by BSEB in half the time limit prescribed by the Commission in the Supply Code from the date of completion of prescribed procedural formalities and payment of applicable fees and charges. In case BSEB fails to release connection within this time limit, BSEB will refund the additional amount claimed to the consumer in the first energy bill Development charges: BSEB has proposed development charges as compensation for time and effort spent by it in processing the application submitted by prospective consumers for release of connections. All applicants for new connections under different tariff categories will be required to pay one time application processing charges in lumsump in order to generate additional source of income to BSEB to bridge the revenue gap. BIHAR STATE ELECTRICITY BOARD 89

91 Review Petition for FY and ARR & Tariff Petition for FY Tariff Schedule PART - A: LOW TENSION SUPPLY System of supply: Low Tension Alternating Current, 50 cycles Single Phase supply at 230 Volts Three Phase supply at 400 Volts The tariffs are applicable for supply of electricity to L.T consumers with a connected load upto 60 kw for domestic and non-domestic category, upto 99 HP for industrial (LTIS) and for public water works (PWS) category and upto 100 HP for irrigation category. Single Phase supply upto 5.0 kw Three Phase supply 5.0 kw and above CATEGORY OF SERVICE AND TARIFF RATES 1.0 Domestic SERVICE Applicability This tariff is applicable for supply of electricity to domestic purposes such as lights, fans, radios, televisions, heaters, air-conditioners, washing machines, air-coolers, geysers, refrigerators, ovens, mixers and other domestic appliances including motor pumps for lifting water for domestic purposes. This is also applicable to the common facilities in the multistoried, purely residential apartments, buildings. 1.1 Kutir Jyoti Connection (KJ) Rural / Urban BIHAR STATE ELECTRICITY BOARD 90

92 Review Petition for FY and ARR & Tariff Petition for FY This will be applicable to (i) all huts (Kutir) and dwelling houses of rural and urban families below the poverty line (BPL) (ii) houses built under schemes like Indira Awas Yojana and similar such schemes for BPL families. i) Hut (Kutir) means a living place with mud wall and thatched roof or house built under Indira Awas Yojana and other similar schemes for BPL families which shall not exceed 200 Sq ft area. ii) iii) iv) The total connected load of Kutir Jyoti connection in a rural area should not exceed 60 watts and for an urban connection it should not exceed 100 watts and maximum consumption upto 360 units shall be allowed during the period of preceding 12 months. Use of CFL both in rural areas and urban areas should be encouraged. In case it is detected that the norms prescribed in para (i) and (ii) above are violated, the Kutir Jyoti Tariff shall immediately become inoperative and rates applicable to DS I and DS- II category as the case may be, with appropriate charge shall apply in such cases. 1.2 Domestic Service I (DS I) This is applicable to domestic premises in rural areas for a load upto 2 kw not covered by areas indicated under DS-II and not being fed from urban / town feeders. 1.3 Domestic Service II (DS II) This is applicable for domestic premises in urban areas covered by Notified area committee / Municipality / Municipal Corporation / Development Authority / All District and Sub divisional towns / Block Head Quarters / Industrial areas /Contiguous Sub urban areas and also areas getting power from Urban / Town feeders for single phase supply for load upto 5 kw and three phase supply for load of 5 kw and above. Rural consumers having sanctioned load above 2 kw will come under this category. Consumer has the option to take single -phase or three-phase supply connection for a load of 5KW. BIHAR STATE ELECTRICITY BOARD 91

93 Review Petition for FY and ARR & Tariff Petition for FY Domestic Service III (DS III) This is applicable for registered societies, for their residential colonies, having not less than 15 houses / flats in the colony. Residential colonies / multistoried residential complexes taking load in bulk at a single point with a minimum load of 2 kw per flat / house and maximum total load upto 60 kw. TARIFF RATES 1.0 DOMESTIC SERVICE Category of consumer Fixed charge (Rs.) Energy charges 1.1 Kutir Jyoti Consumption in a month (Units) Rate P/unit Rural- Unmetered Rs. 80/connection/ per month x X Rural Metered Urban- Metered Rs.30/connection/ per month x Rs. 30/connection/ per month First 30 units units units 400 Above 100 units 450 Subject to monthly minimum charge of 25 units per month First 30 units units units 450 Above 100 units 500 BIHAR STATE ELECTRICITY BOARD 92

94 Review Petition for FY and ARR & Tariff Petition for FY x Subject to monthly minimum charge of 25 units per month No Fuel and Power Purchase cost Adjustment (FPPCA) charges applicable. Category of consumer 1.2 DS I Connected load: Upto 2 kw only Unmetered Fixed charge (Rs.) Energy charges Consumption in Rate P/unit a month (Units) Rs.320/connection /per month X X Metered Rs. 50/connection/ per month x First 50 units units 450 Above 100 units 500 Subject to monthly minimum charge of 40 units per kw per month Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable will be charged extra. Category of consumer Fixed charge (Rs.) Energy charges 1.3 DS II (Metered) Consumption in a month (Units) Rate Ps/unit BIHAR STATE ELECTRICITY BOARD 93

95 Review Petition for FY and ARR & Tariff Petition for FY Single phase Up to 5 kw Three Phase 5 kw and above First kw-rs. 60/ month/connection Addl. kw-rs. 40/- kw or part thereof per month. 5 kw-rs. 220/ month/connection Addl. kw-rs. 40/ per kw or part thereof per month units units units 600 Above 300 units 700 Subject to monthly minimum charge of 40 units per kw per month Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. Domestic - DS-II (D) Demand Based OPTIONAL All consumers under DS-II category with 3 phase meter connection with contract demand between 5 kw and 60 kw opting for demand based tariff shall be required to pay at the rates indicated below: Category of consumer DS-II (D)- (OPTIONAL) Demand Based Tariff Demand charge (Rs./kW/month) Energy charges Consumption in a month (Units) Rate Ps/unit BIHAR STATE ELECTRICITY BOARD 94

96 Review Petition for FY and ARR & Tariff Petition for FY Contracted Rs. 50/kW per units 450 demand of 5 kw month or part units 500 to 60 kw thereof on recorded units 600 demand or contract Above 300 units 700 demand whichever is higher. Subject to (i) Monthly minimum charge of 50 units per month/kw on recorded demand or contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of the contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate. Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. Category of consumer Fixed charge (Rs.) Energy charges 1.4 DS III (Metered) Consumption in a month (Units) Rate (Ps/unit) Rs. 60/- kw/ month All units 600 Subject to monthly minimum charge of 40 units per kw per month FPPCA as applicable will be charged extra. 1.5 Domestic Service (Temporary) -DS (T) This tariff category will be applicable to temporary connections sought for electricity usages covered under all domestic tariff categories. BIHAR STATE ELECTRICITY BOARD 95

97 Review Petition for FY and ARR & Tariff Petition for FY Category of consumer DS (T) Unmetered Fixed charge (Rs.) Rs. 300/kW/ per day Energy charges Consumption in a Rate P/unit month (Units) X X Metered Rs. 3/kW/ per day All units 1400 x Subject to daily minimum charge of 20 units/kw/day No FPPCA will be charged to DS (T) categories of consumers. The other terms and conditions of the tariff shall be as per the terms and conditions of tariff applicable to all domestic tariff categories of consumers. The maximum duration for which the connection can be availed under this tariff category shall be six months. 1.6 Voltage Surcharge to all Domestic Service Consumer: In case a single phase, 230 Volt consumer having connected load more than 5 kw fails to avail supply through three phase, 440 Volt line then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However this voltage surcharge will not absolve the consumer from his responsibility to avail supply through three phase, 440 Volt line. 2.0 Non-Domestic SERVICE (NDS) Applicability BIHAR STATE ELECTRICITY BOARD 96

98 Review Petition for FY and ARR & Tariff Petition for FY This is applicable for supply of electrical energy for non-domestic consumers having sanctioned load upto 60 kw, using electrical energy for light, fan and power loads for non domestic purposes like shops, hospitals, nursing homes, clinics, dispensaries, restaurants, hotels, clubs, guest houses, marriage houses, public halls, show rooms, centrally air-conditioning units, offices, commercial establishments, cinemas, X-ray plants, non government schools, colleges, libraries and research institutes, boarding / lodging houses, libraries, railway stations, fuel/oil stations, service stations, All India Radio / T.V. installations, printing presses, commercial trusts, societies, banks, theatres, circus, coaching institutes, common facilities in multistoried commercial office / buildings Government and semi government offices, public museums and other installations not covered under any other tariff schedule. Government educational institutions, their hostels and libraries, Government hospitals and government research institutions and non profitable government aided educational institutions their hostels and libraries. Non-profit recognized charitable cum public institutions. All places of worship like temples, mosques, gurudwaras, churches, sanctum- sanctorum of Monasteries and burial / crematorium grounds. 2.1 Non Domestic Service (NDS-I) Applicable to loads upto 2 kw in rural areas not covered by areas indicated under NDS II and not being fed from urban / town feeders. Tariff Rates NDS-I Fixed charge (Rs.) Energy charges BIHAR STATE ELECTRICITY BOARD 97

99 Review Petition for FY and ARR & Tariff Petition for FY Unmetered Metered Rs. 400/connection/ per month Rs. 80/connection/ per month X Consumption Rate in a month ps/unit (Units) x X units units 500 Above units Subject to monthly minimum charge of 50 units per kw FPPCA charges as applicable will be charged extra. 2.2 Non Domestic Service NDS II Applicable to loads upto 60 kw in urban areas covered by Notified Area Committees / Municipalities / Municipal Corporations / Regional Development Authorities / District and Sub divisional towns / Block headquarters / Industrial areas / contiguous sub urban areas getting power from urban / town feeders, except those covered under NDS-III. Rural consumers having sanctioned load above 2 kw will also come under this category. Tariff Rates NDS-II Fixed charge (Rs.) Per month Energy charges Consumption in a month Rate ps/unit (Units) BIHAR STATE ELECTRICITY BOARD 98

100 Review Petition for FY and ARR & Tariff Petition for FY Single phase Rs. 200 /kw or part thereof upto 5 Kw Three Phase Rs. 200/kW or part thereof for loads of 5 kw and above units units 700 Above 200 units 800 Subject to a monthly minimum charge of 50 units/kw or part thereof FPPCA charges as applicable will be charged extra. OPTIONAL Non-Domestic Service - NDS II (D) Demand Based All those consumers under NDS-II with 3 phase supply and contract demand between 5 kw and 60 kw opting for demand based tariff shall be required to pay at the rates indicated below: Category of consumer NDS-II (D) (OPTIONAL) Demand Based Tariff Demand charge (Rs./kW/month) Energy charges Consumption in Rate a month (Units) ps/unit BIHAR STATE ELECTRICITY BOARD 99

101 Review Petition for FY and ARR & Tariff Petition for FY Contract demand Rs. 250/kW per units 650 of 5 kw to 60 kw month or part units 700 thereof on recorded Above 200 units 800 demand or contract demand whichever is higher. Subject to (i) Monthly minimum charge of 70 units per month/kw on recorded demand or contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate. Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. 2.3 Non-Domestic Service - NDS III (applicable upto maximum load of 30 kw only) This is applicable for all places of worship like temples, mosques, gurudwaras, churches, sanctum- sanctorum of religious places and burial /crematorium grounds. If any portion of the premises is used for other purposes, a separate connection shall be taken for that portion and NDS-II tariff schedule shall be applicable for that purpose. Tariff Rates-NDS-III Fixed charge (Rs.) Rs.100 /kw or part thereof For load upto 30 KW Energy charges Consumption in a month Rate ps/unit (Units) units units 600 Above 200 units 650 BIHAR STATE ELECTRICITY BOARD 100

102 Review Petition for FY and ARR & Tariff Petition for FY maximum. Subject to monthly minimum charge of 50 units/kw or part thereof. FPFCA charges as applicable will be charged extra. OPTIONAL Non-Domestic Service - NDS III (D) Demand Based All those consumers under NDS-III category with 3 phase supply and with contract demand between 5 kw and 30 kw opting for demand based tariff shall be required to pay at the rates indicated below: Category of consumer NDS-III (D) (OPTIONAL) Demand Based Subject to (i) Tariff Contract demand of 5 kw to 30 kw Demand charge (Rs./kW) Rs. 120/kW per month or part thereof on recorded demand or contract demand whichever is higher. Energy charges Consumption in a month (Units) units units Above 200 units Monthly minimum charge of 70 units per month/kw on recorded demand or contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate. Rate Ps/unit BIHAR STATE ELECTRICITY BOARD 101

103 Review Petition for FY and ARR & Tariff Petition for FY Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. 2.4 Non-Domestic Service - NDS IV Applicable to electricity used for the purpose of exclusive commercial advertisements for hoardings and other similar connections by/through advertising agencies. Rates Tariff Rates NDS-IV Fixed Charges: Rs. 400 per kw per month Energy Charges: 1600 paise per kwh FPPCA charges as applicable will be charged extra. 2.5 Non-Domestic Service (Temporary) - NDS (T) This tariff category will be applicable to temporary connections sought for electricity usages covered under all NDS tariff categories. The tariff charged shall be charged the following rates: Category Unmetered Fixed charge (Rs.) Rs.350 /kw/day Energy charges Consumption in a Rate ps/unit month (Units) Metered Rs. 10/kW/day All units 1600 Subject to daily minimum charge of 20 units/kw or part thereof. BIHAR STATE ELECTRICITY BOARD 102

104 Review Petition for FY and ARR & Tariff Petition for FY No FPPCA charges will be applicable to NDS(T). The other terms and conditions of the tariff shall be as per the terms and conditions of tariff applicable to NDS tariff category. The maximum duration for which the connection can be availed under this tariff category shall be six months. 2.6 Voltage Surcharge to all Non-Domestic Service Consumer: In case a single phase, 230 Volt consumer having connected load more than 5 kw fails to avail supply through three phase, 440 Volt line then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However this voltage surcharge will not absolve the consumer from his responsibility to avail supply through three phase, 440 Volt line. 3.0 IRRIGATION and AGRICULTURE SERVICE (IAS) Applicability This is applicable for supply of electrical energy for bonafide use for agricultural purposes including processing of Agricultural Produce, confined to chaff - cutter, thrasher, cane crusher and rice Huller when operated by the agriculturist in the field or farm and does not include rice mills, flour mills, oil mills, dal mills or expellers. This is also applicable to hatcheries, poultries (with more than 1000 birds) and fisheries (fish ponds). 3.1 IAS - I This is applicable for all purposes indicated above including private tube wells. Tariff Rates Unmetered Supply Rural feeder - Rs. 180 / HP per month Urban feeder - Rs. 200 /HP per month Note: Hatcheries, poultries and fisheries are not covered under unmetered supply they have to be metered only. Metered supply BIHAR STATE ELECTRICITY BOARD 103

105 Review Petition for FY and ARR & Tariff Petition for FY Rural feeder Energy Charges 150 Ps/unit Urban feeder Energy Charges 225 Ps/unit Subject to monthly minimum energy charges of Rural feeder - Rs. 100/HP per month Urban feeder - Rs. 150/HP per month No FPPCA charges applicable. 3.2 IAS II This is applicable to state tube wells / state lift irrigation pumps / state irrigation pumps upto 100 HP. Unmetered Supply Rural feeders - Rs. 900 /HP per month Urban feeders - Rs. 1000/HP per month Metered supply Rural feeder Energy Charges 600 Ps/unit Urban feeder Energy Charges 700 Ps/unit Subject to a monthly minimum energy charge of 225 units /HP per month. FPPCA charges as applicable will be charged extra. 4.0 LOW TENSION INDUSTRIAL SERVICE (LTIS) 4.1 LTIS Applicability BIHAR STATE ELECTRICITY BOARD 104

106 Review Petition for FY and ARR & Tariff Petition for FY This is applicable for supply of electricity to existing low tension industrial consumers with a connected load upto 99 HP and below including incidental lighting for industrial processing or agro industries purposes, arc welding sets, flour mills, oil mills, rice mills, dal mills, atta chakki, Huller, expellers etc. All new three phase consumers seeking low tension industrial supply shall avail supply under LTIS (D) category. However, existing three phase LTIS consumers will have option to opt for LTIS (D) category. Tariff Rates Fixed charge (Rs.) Rs.110/HP or part thereof / per month Energy charges Consumption in a Rate month (Units) (ps/unit) All units 750 Subject to monthly minimum charge of 100 units/hp or part thereof. FPPCA charges as applicable will be charged extra. 4.2 LTIS (D) Demand based Tariff (Compulsory for all new three phase LTIS consumers) All those consumers under LTIS (D) category shall be required to pay at the rates indicated below: Category of consumer Demand charge (Rs./kW) Energy charges LTIS (D) Consumption in a month (Units) Rate Ps/unit BIHAR STATE ELECTRICITY BOARD 105

107 Review Petition for FY and ARR & Tariff Petition for FY Rs. 160/kW per month or part All units 750 thereof on recorded demand or contract demand whichever is higher. Subject to (i) Monthly minimum charge of 160 units per month/kw on recorded demand or contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate. Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be charged extra. 4.3 LTIS (Temporary) -LTIS -T This tariff category will be applicable to temporary connections sought for electricity usages covered under LTIS tariff category. Tariff Rates Unmetered Metered Fixed charge (Rs.) Rs. 250 /HP/day Rs. 10/HP/day or part thereof Energy charges Consumption in a Rate month (Units) (ps/unit) All units 1500 Subject to monthly minimum charge of 15 units/hp /day or part thereof. FPPCA charges will not be applicable to this consumer category. BIHAR STATE ELECTRICITY BOARD 106

108 Review Petition for FY and ARR & Tariff Petition for FY The other terms and conditions of the tariff shall be as per the terms and conditions of tariff applicable to LTIS tariff category. The maximum duration for which the connection can be availed under this tariff category shall be six months. 4.4 Voltage Surcharge: In case a LTIS Consumer with connected load of more than 99 HP fails to avail supply at 11 kv then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However this voltage surcharge will not absolve the consumer from his responsibility to avail supply at 11 kv. 4.5 Consumers with a connected load above 79 HP and upto 99 HP have option to avail power under HTS-I category also. 5.0 Public Waterworks (PWW) (Connected load upto 99 HP) 5.1 PWW Applicability This is applicable to public water works, sewerage treatment plant and sewerage pumping stations functioning under state government and state government under takings and local bodies. Energy charges Fixed charge (Rs.) Rs. 200/HP or part thereof per month Consumption in a month Rate (Units) (Ps/unit) All units 700 Subject to monthly minimum charge of 165 units / HP or part thereof. FPPCA charges as applicable will be charged extra. 5.2 PWW (Temporary) PWW (T) BIHAR STATE ELECTRICITY BOARD 107

109 Review Petition for FY and ARR & Tariff Petition for FY This tariff category will be applicable to temporary connections sought for electricity usages covered under PWW tariff category. Tariff Rates Unmetered Metered Fixed charge (Rs.) Rs. 200 /HP/day Rs. 10/HP/day or part thereof Energy charges Consumption in a Rate month (Units) (ps/unit) All units 1400 Subject to monthly minimum charge of 12 units/hp /day or part thereof. FPPCA charges will not be applicable to this consumer category. The other terms and conditions of the tariff shall be as per the terms and conditions applicable to PWW tariff category. The maximum duration for which the connection can be availed under this tariff category shall be six months. 5.3 Voltage Surcharge: In case a PWW Consumer with connected load of more than 99 HP fails to avail supply at 11 kv then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However this voltage surcharge will not absolve the consumer from his responsibility to avail supply at 11 kv. 5.4 Consumers with a connected load above 79 HP and upto 99 HP have the option to avail power under HTS-I category also. 6.0 STREET LIGHT SERVICES Applicability This is applicable for supply of electricity for street light system including signal system in corporation, municipality, notified area, committees, panchayats etc. and also in areas not covered by municipality and notified area committee provided the BIHAR STATE ELECTRICITY BOARD 108

110 Review Petition for FY and ARR & Tariff Petition for FY number of lamps from a point of supply is not less than five. Also applicable for Traffic Lights, Mast lights / Blinkers etc. Tariff Rates 6.1 SS-I Metered Supply All units 650 Ps. /unit Subject to monthly minimum charge of i) Gram Panchayats 160 units / kw or part thereof ii) For Nagar Palika / NAC / Municipality 220 units / kw or part thereof iii) For Municipal Corporations 250 units / kw or part thereof FPPCA charges as applicable will be charged extra 6.2 SS-II Unmetered Supply Fixed Charges i) Gram Panchayats Rs. 250 per 100 W/month or part thereof ii) For Nagar Palika / NAC / Municipality Rs. 325 per 100 W/month or part thereof iii) For Municipal Corporations Rs. 400 per 100 W/month or part thereof FPPCA charges as applicable will be charged extra. BIHAR STATE ELECTRICITY BOARD 109

111 Review Petition for FY and ARR & Tariff Petition for FY TERMS AND CONDITIONS OF LOW TENSION TARIFF The foregoing tariffs are subject to the following conditions. 1. Rebate for prompt payment The due date for making payment of energy bills or other charges shall be 15 days from the date of issue of the bill. Rebate will be allowed for making payment of energy bills on or before due date specified in the bill as given below: i. Kutir Jyoti (Unmetered) Rs.2/- per connection per month. ii. DS-I and NDS-I (Unmetered) Rs.3/- per connection per month. iii. Agricultural and Irrigation pumpsets Rs.5/- per HP/month (Unmetered) iv. Street Lights (Unmetered) Rs.3/- per connection/month v. All metered categories 10 paise per unit, on units billed In case a consumer makes full payment after due date, DPS shall be leviable and rebate for prompt payment will not be admissible. 2. Delayed Payment Surcharge (DPS) In case a consumer does not pay energy bills in full by due date specified in the bill, a delayed payment surcharge of one and half (1.5) percent per month or part thereof on the balance amount of bill will be levied from the due date for payment until the payment is made in full without prejudice to right of the licensee to disconnect the supply in accordance with Section 56 of the Electricity Act, The licensee shall clearly indicate on the bill itself the total amount, including DPS, payable after the due date by the consumer. No DPS shall be charged on DPS arrear. The bill shall indicate the energy charges for the month, arrears of energy charges and DPS separately. 3. Duties and Taxes BIHAR STATE ELECTRICITY BOARD 110

112 Review Petition for FY and ARR & Tariff Petition for FY Other statutory levies like electricity duty or any other taxes, duties etc., imposed by the State Government / Central Government or any other competent authority, shall be extra and shall not be part of the tariff as determined under this order. 4. Defective / Damaged / Burnt meters supply In case of meter being defective / damaged / burnt the Board or the consumer as P D L R C Till defective / damaged / burnt meter is replaced, the consumption will be assessed and billed on an average consumption of last 12 months from the date of meter being out of order. Such consumption shall be treated as actual consumption for all practical purposes including calculation of electricity duty until the meter is replaced/rectified. In case of newly installed meter of a consumer becoming defective/ damaged/ burnt after installation of meter and consumption of last 12 months is not available, the consumer shall be billed provisionally on the basis of MMC or the average consumption computed on the basis of past consumption whichever is higher. The final billing of the consumer for the period of provisional billing shall be done on the basis of average metering reading of the consumer for the subsequent 12 months after installation of healthy meter. 5. Shunt Capacitor Installation a) Every LT consumer excluding domestic consumers and single phase nondomestic consumers but including irrigation pump set consumers whose connected load includes induction motor (s) of capacity 3 HP and above and other low power factor consuming appliances shall arrange to install low tension shunt capacitors of appropriate capacity at his cost across terminals of his motor (s). The consumer shall ensure that the capacitors installed by him are properly BIHAR STATE ELECTRICITY BOARD 111

113 Review Petition for FY and ARR & Tariff Petition for FY matched with the actual rating of the motor so as to ensure power factor of 90%. b) All LT consumers having welding transformers will be required to install suitable shunt capacitor (s) of adequate capacity so as to ensure power factor of not less than 90%. c) The capacitors shall be of standard manufacture and meet the Bureau of Indian Standards specification. d) Consumers not complying to above shall be liable to pay a surcharge of 5% (five percent) of the billed amount excluding DPS till the capacitors are installed. e) Any LT consumer in whose case, the meter installed has power factor recording feature and who fails to maintain power factor of 90% in any month shall pay a surcharge of 5% (five percent) of the billed amount excluding DPS till the defective capacitors are replaced and power factor of 90% is maintained. f) No new supply to LT installations having low power factor consuming equipment such as induction motor of 3 HP and above or welding transformers etc., will be released unless shunt capacitors are installed to the satisfaction of the Board. g) The ratings of shunt capacitor to be installed on the motors of different ratings E C C 6. Supply Premium payable by Consumers on notified areas All LT consumers, except Kutir Jyoti and Agricultural consumers, in the notified areas to which licensee intends to supply continuous power atleast for 600 hours in a month. The continuous supply mean normal supply excluding the duration of grid failure, plant failure of power supplier, any force majeure condition, scheduled shut H Commission under section 23 of Electricity Act, 2003 will be required to pay 10% supply premium on demand/fixed and energy charge and in MMC. Section 23 of Electricity Act, 2003 which provides inter-alia D D L if the appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting BIHAR STATE ELECTRICITY BOARD 112

114 Review Petition for FY and ARR & Tariff Petition for FY competition, it may, by order, provide for regulating supply, distribution, consumption or use th Licensee will be notified the proposed Supply Premium areas and charges will be levied after such notification. Supply Premium shall be levied after notification of such areas by licensee. 7. Penalty for bounced Cheque In case the cheque given by the consumer against the energy bills is dishonored by the bank a penalty of Rs. 200 per dishonoured cheque shall be payable by the consumer. Action against such consumers shall be taken as per clause 7.4 (h) and 10.9 of Bihar Electricity Supply Code. Clause 7.4 (h) and 10.9 of BESC which provides inter-alia (h) After a minimum period of seven days, incase of dishonouring of the cheque by the Bank (non In case of non-realisation of cheque, the licensee shall have right to increase the security deposit from the consumers. The licensee shall also have the right to take steps such as levying cheque dishonour charges or initiating other actions as per law besides insisting on future payment by demand draft or by cash. 8. Adjustment in case of partial bill payment: In case of partial payment made by the Consumer the adjustment of the payment made by him will be done in the following order: Statutory taxes and duties Additional Security DPS on arrears Principal arrears Current bill BIHAR STATE ELECTRICITY BOARD 113

115 Review Petition for FY and ARR & Tariff Petition for FY Cap on Overall Rebates: The consumer will be entitled to claim maximum of 4% to rebate from all permissible rebates. 10. Interest on Advance Payment: In case a consumer makes an advance payment of monthly energy bills, he shall be allowed to do so vide clause no (2) of Bihar Electricity Supply Code. Such consumer shall be entitled for interest on outstanding balance on month to month basis at Bank rate notified by Reserve Bank of India from time to time. BIHAR STATE ELECTRICITY BOARD 114

116 Review Petition for FY and ARR & Tariff Petition for FY PART - B: HIGH TENSION SUPPLY 7.1 HTS I (11 kv/6.6 kv) Applicable for supply of electricity for use in installations with a minimum contract demand of 75 kva and maximum contract demand of 1500 kva. Character of service: AC, 50 cycles, 3 phase at 11 kv or 6.6 kv. Tariff rates Demand charge Energy charges Rs./ kva / Month of billing demand Paise / kwh 350 All units 700 (i) (ii) (iii) (iv) (v) The billing demand shall be the maximum demand recorded during the month or 85% of the contract demand whichever is higher. Minimum base energy charge will be billed on the basis of energy consumption at a load factor of 30% and power factor of 90% on contract demand payable at 700 Ps/unit, monthly. Surcharge of 7.5% will be levied on the demand and energy charges for supply at 6.6 kv. Voltage Surcharge: In case a HT Consumer with contract demand of more than 1500 kva fails to avail supply at 33 kv then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However, this voltage surcharge will not absolve the consumer from his responsibility to avail supply at 33 kv. If in any month the recorded maximum demand exceeds 110% of contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal charges. Supply Premium to be paid by HTS-I consumers on notified areas All HTS-1 consumers in the notified areas to which licensee intends to supply continuous power atleast for 600 hours in a month. The continuous supply mean BIHAR STATE ELECTRICITY BOARD 115

117 Review Petition for FY and ARR & Tariff Petition for FY normal supply excluding the duration of grid failure, plant failure of power supplier, any force majeure condition, scheduled shut down, emergent breakdown and restrictio H C Electricity Act, 2003 will be required to pay 10% supply premium on demand/fixed and energy charge and in MMC. Section 23 of Electricity Act, 2003 which provides inter-alia D Distribution Licensee: if the appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, by order, provide for regulating supply, distribution, Licensee will notify the proposed Supply Premium areas and charges will be levied after such notification. FPPCA charges as applicable shall be charged extra. 7.2 HTS II (33 kv) This is applicable for use in installations with a minimum contract demand of 1501 kva and maximum contract demand of 10,000 kva. Character of service: AC, 50 cycles, 3 phase at 33 kv. Tariff rates Demand charge Energy charges Rs. / kva / Month of billing demand (Paise / unit) 350 All units 690 (i) The billing demand shall be the maximum demand recorded during the month or 85% of the contract demand whichever is higher. BIHAR STATE ELECTRICITY BOARD 116

118 Review Petition for FY and ARR & Tariff Petition for FY (ii) Minimum base energy charge will be billed on the basis of energy consumption at a load factor of 35% and power factor of 90% on contract demand payable at 690 Ps/unit, monthly. (iii) If in any month the recorded maximum demand exceeds 110% of contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal charges. (iv) Voltage Surcharge: In case a HT Consumer with contract demand of more than 10 MVA fails to avail supply at 132 kv then a voltage surcharge of 7.5% will be levied on the fixed and energy charges as per the existing tariff. However this voltage surcharge will not absolve the consumer from his responsibility to avail supply at 132 kv. (v) Existing consumer having contract demand of more than 1001 kva to 1500 kva availing supply under 33 kv may continue to avail supply at 33 kv under tariff category HTS-II. FPPCA charges as applicable shall be charged extra. 7.3 HTS III (132 kv and Above) This is applicable for installations with a minimum contract demand of more than 10 MVA. Character of service: AC, 50 cycles, 3 phase at 132 kv and above. Tariff rates Demand charge Energy charges Rs. / kva / Month of billing demand (Paise / unit) 350 All units 680 (i) (ii) The billing demand shall be the maximum demand recorded during the month or 85% of the contract demand whichever is higher. Minimum base energy charge will be billed on the basis of energy consumption at a load factor of 50% and power factor of 90% on contract demand payable at 685 Ps/unit, monthly. BIHAR STATE ELECTRICITY BOARD 117

119 Review Petition for FY and ARR & Tariff Petition for FY (iii) (iv) If in any month the recorded maximum demand of the consumer exceeds 110% of the contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal charges. Existing consumer having contract demand of more than 7.5 MVA to 10 MVA availing supply under 132 kv may continue to avail supply at 132 kv under tariff category HTS-III. FPPCA charges as applicable shall be charged extra. 7.4 HTSS (33 kv/11 kv) This is applicable for supply of electricity to all consumers who have contract demand of 300 kva and more for induction furnace including Ferro Alloy loads. This tariff will not apply to casting units having induction furnace of melting capacity of 500 Kg and below. The capacity of induction furnace shall be 600 kva per metric tonne as existing for determining the contract demand of induction furnace in the existing HTSS service connections. However, for new connection and if the furnace is replaced with a new one for the existing connections, the contract demand shall be based on total capacity of the furnace and equipment as per manufacturer technical specifications, and in case of difference of opinion, the provisions of clause Nos and 6.40 of the Bihar Electricity Supply Code shall apply. Those consumers who are having rolling/re-rolling mill in the same premises will take additional contract demand for the rolling/re-rolling mill over and above the contract demand required for induction furnace. The consumer will have the option to segregate the rolling/re-rolling mill and take separate new connection following all prescribed formalities with a separate transformer. This new connection, if taken by the consumer will be allowed to be billed in appropriate tariff schedule. Such rolling/re-rolling mill will be allowed to avail power at 33 kv. Character of service: AC, 50 cycles, 3 phase at 33 kv or 11kV. BIHAR STATE ELECTRICITY BOARD 118

120 Review Petition for FY and ARR & Tariff Petition for FY Tariff rates for supply at 33 kv Demand charge Energy charges Rs. / kva / Month of billing demand (Paise / unit) 900 All units 400 (i) Minimum monthly charges at Rs per kva of contract demand per month shall be payable on monthly basis. Minimum hours of supply will be 630 hours per month. If for any particular month the hours of supply are less than the minimum assured hours of supply as shown above then the minimum monthly charges for the month will be Rs x Actual hours of supply Rs (Assured hours of supply) (ii) (iii) (iv) The billing demand shall be the maximum demand recorded during the month or the contract demand whichever is higher. If in any month the recorded maximum demand of the consumer exceeds 110% of contract demand that portion of the demand in excess of the contract demand will be charged at twice the normal charges. If the power is availed at 11 kv a surcharge of seven point five (7.5) % will be charged extra on demand and energy charges. FPPCA charges as applicable shall be charged extra. 8.0 Railway Traction Service (RTS) This tariff is applicable to Railway Traction loads only. Tariff rates Demand charge Rs. / kva / Month of Energy charges (Paise / unit) billing demand Tariff rates at 132 kv 300 All units 650 BIHAR STATE ELECTRICITY BOARD 119

121 Review Petition for FY and ARR & Tariff Petition for FY (i) (ii) (iii) (iv) (vi) 15 Ps/unit of rebate will be provided for availing supply at voltages higher than 132 kv. 15 Ps/unit of surcharge will be billed for availing supply at voltages lower than 132 kv. The billing demand shall be the maximum demand recorded during the month or 85% of the contract demand whichever is higher. If in any month the recorded maximum demand of the consumer exceeds 110% of the contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal charges. The minimum base energy charge will be billed on the basis of energy consumption at a load factor of 50% and PF of 90% on contract demand. Any adjustment on account of actual energy consumption being lower than the minimum consumption so computed shall be done in the last month of the year. FPPCA charges as applicable shall be charged extra. 9.0 Construction Power (CP) The tariff shall be applicable to those consumers who avail supply at 11 kv and above for construction or fabrication of plants. The tariff rates for the construction power will be 1.25 times of the respective HT tariff category. Monthly base energy charge will be billed 1.25 times of the minimum base energy charge of the respective HT tariff category. Minimum base energy charge of the respective HT tariff category will be calculated in the similar manner as provided under applicable HT tariff category. Conditions for construction power consumers (i) Contract demand of the consumer will not be less than 10% capacity of the installed transformer. BIHAR STATE ELECTRICITY BOARD 120

122 Review Petition for FY and ARR & Tariff Petition for FY (ii) (iii) The billing demand shall be the maximum demand recorded during the month or contract demand whichever is higher. This tariff category of the consumer shall stand terminated from the date of commercial operation of the plant and will be deemed to have changed to appropriate tariff category. Time of Day tariff (ToD) All HT consumers other than Railway traction have the option to take TOD tariff instead of the normal tariff given in the schedule. Under the Time of Day (ToD) Tariff, electricity consumption and maximum demand in respect of HT consumers for different periods of the day, i.e. normal period, peak load period and off-peak load period, shall be recorded by installing a ToD meter. The maximum demand and consumption recorded in different periods shall be billed at the following rates on the tariff applicable to the consumer. Time of use Demand Charges Energy Charges (i) Normal period (5:00 a.m. to 5:00 p.m) (ii) Evening peak load period (5:00 p.m to p.m) (iii) Off-peak load period (11:00 p.m to 5:00 a.m) Normal Rate Normal Rate Normal Rate Normal rate of energy charges 120% of normal rate of energy charges 85% of normal rate of energy charges Applicability and Terms and Conditions of TOD tariff: (i) (ii) TOD tariff will be optional for all HT consumers having contract demand below 200 kva. TOD tariff will be mandatory for all HT consumers having contracted demand of 200 kva and above. The facility of aforesaid TOD tariff shall not be available to HT consumers having captive power plants and/or availing supply from other sources through wheeling of power. BIHAR STATE ELECTRICITY BOARD 121

123 Review Petition for FY and ARR & Tariff Petition for FY (iii) (iv) (v) (vi) (vii) The HT industrial consumers who have installed standby generating plants shall also be eligible for the aforesaid TOD tariff. After electing TOD tariff, if any industrial HT consumer on account of some reasons wants to go back to the earlier tariff according to the agreement, this facility shall be available to him only once in two years. If the actual monthly consumption of such HT consumer, whose monthly minimum charges are based on units, is less than minimum consumption, then the difference (deficit) of units between the minimum consumption and actual consumption shall be billed at normal rate of energy charge prescribed N P In the event of applicability of TOD tariff to a consumer, the terms and conditions of the applicable tariff (such as monthly tariff minimum charge, etc.) shall continue to apply. In case, the consumer exceeds 110% of the contract demand, the demand in excess of contract demand shall be billed at twice the normal tariff applicable for the day time i.e. 5:00 a.m. to 5.00 p.m. irrespective of the time of use. BIHAR STATE ELECTRICITY BOARD 122

124 Review Petition for FY and ARR & Tariff Petition for FY TERMS AND CONDITIONS OF HT TARIFF The foregoing tariffs are subject to the following conditions. 1. Rebate for Prompt Payment The due date for making payment of energy bills or other charges shall be 15 days from the date of issue of the bill. The tariff rates are subject to prompt payment rebate of 1 (one) paise per unit on units billed provided the bill is paid by due date specified therein. If the consumer makes full payment after due date, DPS shall be leviable and rebate for prompt payment will not be admissible. 2. Delayed Payment Surcharge (DPS) In case a consumer does not pay energy bills in full by due date specified in the bill, a delayed payment surcharge of one and half (1.5) percent per month or part thereof on the balance amount of bill will be levied from the due date for payment until the payment is made in full without prejudice to right of the licensee to disconnect the supply in accordance with Section 56 of the Electricity Act, The licensee shall clearly indicate on the bill itself the total amount, including DPS, payable after the due date by the consumer. No DPS shall be charged on DPS arrear. The bill shall indicate the energy charges for the month, arrears of energy charges and DPS separately. 3. Duties and Taxes Other statutory levies like electricity duty or any other taxes, duties etc., imposed by the State Government / Central Government or any other competitive authority, shall be extra and shall not form part of the tariff as determined under this order. 4. Power Factor Surcharge The average power factor (monthly) of the supply shall be maintained by the consumer between.90 and BIHAR STATE ELECTRICITY BOARD 123

125 Review Petition for FY and ARR & Tariff Petition for FY If the monthly average power factor falls below 90% (0.90) he shall pay a surcharge in addition to his normal tariff at the following rates: (i). For each fall of 0.01 in power factor upto 0.80 (ii). For each fall of 0.01 in power factor below 0.80 One percent on demand and energy charge 1.5 (one and half) percent on demand and energy charge (Actual Recorded) If the average power factor falls below 0.70 consecutively for 3 months, the Board prejudice for the levy of the surcharge. 5. Power Factor Rebate In case the average power factor (monthly) of the consumer is more than 95% (0.95) a power factor rebate at the following rates shall be allowed. For each increase of 0.01 in power factor above (zero point five) percent on demand and energy charges (Actual recorded) 6 Transformer Capacity The transformer capacity of all HT consumers except RTS consumer shall not be more than 150% of the contract demand and for RTS consumer 200% of the contract demand. HT consumer found to be utilizing transformer of higher capacity than admissible for his contracted load, will fall under malpractice. Such cases shall be dealt as per the provisions of Bihar Electricity Supply Code, The contract demand of such HT consumer, except RTS consumers, shall be revised to 2/3 of the transformer capacity. For RTS consumer, contract demand shall be revised to 1/ 2 of the transformer capacity. If standard capacity is not available for exact requirement then relaxation in transformer capacity upto 10% extra can be allowed in individual cases on request. All HT/EHT consumers having contract demand of 200 kva and above may be allowed to have a stand by transformer, whose capacity shall not be more than the BIHAR STATE ELECTRICITY BOARD 124

126 Review Petition for FY and ARR & Tariff Petition for FY main transformer. The technical/physical arrangement shall be approved by the B I line will be disconnected and standby facility shall be withdrawn. Considering the special need of the Railway, the RTS consumer may be allowed to have 100% extra i.e. 200% of the contract demand. Stand by transformer may also be allowed, which should not be more than the capacity of the main transformer. 7. Defective / Damaged / Burnt meter replacement In case of meter being defective / damaged / burnt the Board or the consumer as P D L R C Till defective meter is replaced the consumption will be assessed and billed on an average consumption of last 12 months from the date of meter being out of order. Such consumption shall be treated as actual consumption for all practical purposes including calculation of electricity duty until the meter is replaced/rectified. In case of newly installed meter of a consumer becoming defective/ damaged/ burnt after installation of meter and consumption of last 12 months is not available, the consumer shall be billed provisionally on the basis of MMC or the average consumption computed on the basis of past consumption whichever is higher. The final billing of the consumer for the period of provisional billing shall be done on the basis of average metering reading of the consumer for the subsequent 12 months after installation of healthy meter. 8. If the actual recorded demand of a consumer exceeds 110% consecutively for three months Board may issue a notice and inform the consumer to get additional contract demand sanctioned or to limit their drawal as per their contract. Otherwise Board will take action as per provisions of the Act/Rules/Regulations. BIHAR STATE ELECTRICITY BOARD 125

127 Review Petition for FY and ARR & Tariff Petition for FY The prevailing practice will continue for determining the contract demand of induction furnaces in the existing services connections. However, for new connections and where the furnaces are replaced in existing connections, contract demand shall be based on the total capacity of the furnace and equipment as per manufacturer technical specifications and in case of difference of opinion, the provisions of clause No.6.39 and 6.40 of Bihar Electricity Supply Code shall apply. 10. T G B I rial Incentive Policy Bihar-2011 order to create favourable environment and accelerated industrial growth of the State. The Board shall comply with the Industrial Policy of Government of Bihar and its subsequent revisions if any till the time it remains applicable. Such Industrial Policy shall be extended to other eligible consumers also who are covered under this Policy. 11. Penalty for bounced Cheque In case the cheque given by the consumer against the energy bills is dishonored by the bank a penalty of Rs per dishonoured cheque shall be payable by the consumer. Action against such consumers shall be taken as per clause 7.4 (h) and 10.9 of Bihar Electricity Supply Code. Clause 7.4 (h) and 10.9 of BESC which provides inter-alia (h) After a minimum period of seven days, incase of dishonouring of the cheque by the Bank (non In case of non-realisation of cheque, the licensee shall have right to increase the security deposit from the consumers. The licensee shall also have the right to take steps such as levying cheque dishonour charges or initiating other actions as per law besides insisting on future payment by demand draft or by cash. 12. Cap on Overall Rebates BIHAR STATE ELECTRICITY BOARD 126

128 Review Petition for FY and ARR & Tariff Petition for FY The consumer will be entitled to claim maximum of 4% to rebate from all permissible rebates. 13. Withdrawl of rebate The consumer will not be entitled to claim any rebate under any head in case of default of payment by the due date. 14. Adjustment in case of partial bill payment: In case of partial payment made by the Consumer the adjustment of the payment made by him will be done in the following order: Statutory taxes and duties Additional Security DPS on arrears Principal arrears Current bill 15. Interest on Advance Payment: In case a consumer makes an advance payment of monthly energy bills, he shall be allowed to do so vide clause no (2) of Bihar Electricity Supply Code. Such consumer shall be entitled for interest on outstanding balance on month to month basis at Bank rate notified by Reserve Bank of India from time to time. BIHAR STATE ELECTRICITY BOARD 127

129 Review Petition for FY and ARR & Tariff Petition for FY Temporary Supply (LT and HT) 10.1 Applicability This tariff is for connection of temporary in nature for period of less than six months. For LT consumers, the applicability shall be as given in the respective category tariff rate schedule and based on the same metered or unmetered connection will be provided. For LT consumers, if schedule for temporary connection is not provided in the respective category then temporary connection under that category will not be provided. For HT consumers, only metered temporary connection will be provided under respective categories. Temporary supply cannot be claimed by a prospective consumer as a matter of right but will normally be arranged by the Board when a requisition is made giving due notice subject to technical feasibility and in accordance with electricity supply code issued by the Commission Tariff For LT consumers, Tariff shall be chargeable at rates prescribed for temporary supply in the applicable tariff category. For HT Consumers, fixed charge and energy charge shall be chargeable at one and half times the normal tariff as applicable to the corresponding appropriate tariff category. 9.3 Terms of Supply (a) Temporary supply under any category of service may be given for a period not exceeding 30 days in the first instance. The duration of which, however may be extended on month-to-month basis subject to maximum of six months. (b) In addition to the charges mentioned above, the consumer shall have to deposit the following charges before commencement of the temporary supply: (i) Estimated cost of erection of temporary service line and dismantling. BIHAR STATE ELECTRICITY BOARD 128

130 Review Petition for FY and ARR & Tariff Petition for FY (ii) Cost of irretrievable materials which cannot be taken back to service. (iii) Meter rent in case of meter supply for the full period of temporary connection as per appropriate Tariff Schedule and miscellaneous charges. (iv) Rental on the cost of materials as per estimate framed but not payable by the consumer shall be payable at the rate of Rs. 15/- per month on every Rs. 100/- or part thereof. (v) Ten per cent on the total cost of the estimate for the temporary service connection to cover as security for loss of materials and contingencies. In case such loss is not noticed, the amount will be refunded. (c) The applicants for temporary supply shall be required to make a deposit in advance of the cost as detailed above including the energy consumption charges estimated for full period on the basis of connected load. This will however, be adjusted against the final bill that will be rendered on disconnection of supply month to month basis. (d) If the consumer intends to extend the temporary supply beyond the period originally applied for, he will have to deposit in advance all charges as detailed above including the estimated electricity consumption charges, for the period to be extended and final bill for the previous period, as well. (e) The temporary supply shall continue as such and be governed by the terms and conditions specified above until the supply is terminated or converted into permanent supply at the written request of the consumer. The supply will be governed by the terms and conditions of permanent supply only after the consumer has duly completed all the formalities like execution of agreement, deposit of security money, cost of service connection and full settlement of the account in respect of the temporary supply etc Seasonal Supply (LT and HT) 1. Seasonal supply shall be given to any consumer on written request to the Board subject to the following conditions. BIHAR STATE ELECTRICITY BOARD 129

131 Review Petition for FY and ARR & Tariff Petition for FY Period of Supply Tariff Rate 1. Upto 3 consecutive months in a year Appropriate tariff plus 30 percent 2. More than 3 consecutive months and Appropriate tariff plus 20 percent upto 6 consecutive months in a year 3. More than 6 consecutive months and Appropriate tariff plus 15 percent upto 9 consecutive months in a year 4. More than 9 consecutive months but less than one year Appropriate tariff plus 5 percent. 2. The meter rent and other charges as provided in the appropriate tariff are applicable to seasonal loads and would be charged extra for the entire period of supply. 3. The supply would be disconnected after the end of the period unless the consumer wants the supply to be continued. Any reconnection charges have to be borne by the consumer. 4. Consumer proposing to avail seasonal supply shall sign an agreement with the Board to avail power supply for a minimum period of 3 years in the case of HT and 2 years in case of LT category of supply. 5. The consumers must avail supply in terms of whole calendar month continuously. 6. The consumer is required to apply for seasonal supply and pay initial cost and security deposit as an applicant for normal electricity supply. 7. The consumer shall ensure payment of monthly energy bills within 7 days of its receipt. The supply will be disconnected if payment is not made on due date. BIHAR STATE ELECTRICITY BOARD 130

132 Review Petition for FY and ARR & Tariff Petition for FY PART - C: MISCELLANEOUS AND GENERAL CHARGES 1.1 The BSEB makes a humble submission that the schedule needs to be revised keeping in mind the currently prevailing economic indicators. As per the Office of the Economic Advisor to the Government of India, the wholesale price index and inflation, which are a healthy indicator of the cost of living, have shown an increase as under: Particulars Wholesale price index It is the submission of the Board that a commensurate increase may also be allowed in the charges in the schedule of general and miscellaneous charges. 1.3 Accordingly, BSEB proposes to hike the rates as under: (a) Meter Rent Particulars Currently Applicable Charges Proposed charges Kutir Jyoti Rs.10/month Rs.15/month Single Phase LT except Kutir Jyoti Rs. 20/month Rs. 30/month Three Phase LT Upto 100 Amps Rs. 50/month Rs. 75/month LT meter with CT Rs. 500 / month Rs. 750 / month 6.6 kv and 11 kv HTS-I Metering at low voltage Metering at 6.6/11 kv 33 kv HT metering equipment for HTS-II and HTSS Rs.500/month Rs.700/month Rs.3000/month Rs. 750/month Rs. 1000/month Rs.4000/month 132 kv EHT metering equipment for HTS-III Rs.15000/month Rs /month 25 kv RTS Rs.3000/month Rs. 4000/month 132 kv RTS Rs.15000/month Rs /month (b) Application fee for new connection/reduction of load/enhancement of load/request for permanent disconnection BIHAR STATE ELECTRICITY BOARD 131

133 Review Petition for FY and ARR & Tariff Petition for FY Particulars Currently Applicable Charges Proposed charges Kutir Jyoti Rs.10 Rs.20 LT Single phase Rs.50 Rs.75 LT Three phase Rs.100 Rs. 200 LT Industrial Rs.200 Rs. 300 HT Connection Rs.500 Rs. 750 (c) Testing/Inspectio Particulars Currently Applicable Charges Proposed charges Initial Test / Inspection Free of cost Free of cost Subsequent test and inspection necessitated by fault in installation or by not complying with terms and conditions of supply Rs for single phase connection Rs for three phase LT connection Rs for HT connection. Rs for single phase connection Rs for three phase LT connection Rs for HT connection. (d) Meter Testing Fee Particulars Currently Applicable Charges Proposed charges Single Phase meter Rs Rs Three Phase meter Rs Rs Three Phase meter with CT Rs Rs Tri-vector and special type meter Rs Rs kv or 11 kv metering equipment Rs Rs kv/220 kv metering equipment Rs Rs If the meter is tested at third party testing laboratory at the request of the consumer then the fees charged by the testing laboratory will be payable by the consumer. (e) Removing/Re-C M M B request BIHAR STATE ELECTRICITY BOARD 132

134 Particulars Review Petition for FY and ARR & Tariff Petition for FY Currently Applicable Charges Proposed charges Single Phase meter Rs Rs Three Phase meter Rs Rs Three Phase meter with CT Rs Rs Tri-vector and special type meter Rs Rs High tension metering equipment Rs Rs Note: Cost of material, as required, will be borne by the consumer (f) Reconnection charge Particulars Currently Applicable Charges Proposed charges Single Phase supply LT Rs Rs Three Phase supply LT Rs Rs Three Phase LT industrial supply Rs Rs HT supply Rs Rs (C ) Supervision, Labour and Establishment charge for service connection Particulars Currently Applicable Charges Proposed charges Single Phase supply LT Rs Rs Three Phase supply LT Rs Rs Three Phase LT industrial supply Rs Rs HT supply As per approved estimate As per approved estimate (d) Security Deposit 1.4 The consumer (except Kutir Jyoti rural and Kutir Jyoti urban) shall pay initial security deposit equivalent to the estimated energy charges including fixed/demand charges for a period of three months or as per the provisions of Bihar Electricity Supply Code notified by the Commission. 1.5 The amount of security deposit is liable to be enhanced every year, in April-May of next year on the basis of average bills for previous years. In default of payment of additional security deposit, wherever payable after review, the service line may be disconnected on serving thirty days notice and connection thereafter can be BIHAR STATE ELECTRICITY BOARD 133

135 Review Petition for FY and ARR & Tariff Petition for FY restored only if the deposit is made in full along with the prescribed reconnection charges and per month or part thereof on the amount of outstanding. Interest on consumer security Deposit 1.6 Security deposit made by a consumer shall bear interest as specified in Bihar Electricity Supply Code, payable at Bank rate notified by RBI from time to time. The interest will be calculated for full calendar months only and fraction of a month in which the deposit is received or refunded, shall be ignored. The interest for the period ending 31st March shall be adjusted and allowed to the consumer in the energy bill for May issued in June and in subsequent month(s), if not adjusted completely against the bill for the month of May. 1.7 The other terms and conditions of supply of electricity not specially provided in this tariff order will continue to be regulated by the provisions specified in the Bihar Electricity Supply Code notified by the Commission. Charges for Tatkal Connection 1.8 All the consumer categories other than High Tension and Railway may avail benefit of this scheme. The General and Miscellaneous charges for the Tatkal connection will be 2 (Two) times of the charges approved under the head general and miscellaneous charges. 1.9 The connection under this scheme shall be released by BSEB in half the time limit prescribed by the Commission in the Supply Code from the date of completion of prescribed procedural formalities and payment of applicable fees and charges. In case BSEB fails to release connection within this time limit, BSEB will refund the additional amount claimed to the consumer in the first energy bill. Development Charges 1.10 All applicants for new connections under different tariff categories will be required to pay one time development charges in lumsump towards infrastructure development charges. The charges payable will be as follows: DS (except KJ) and NDS-Single Phase-Rs. 500 DS and NDS - Three Phase-Rs per connection BIHAR STATE ELECTRICITY BOARD 134

136 Review Petition for FY and ARR & Tariff Petition for FY IAS-I Rs per connection IAS-II Rs per connection LTIS - Rs per connection PWW - Rs per connection SS - Rs per connection HTS I - Rs per connection HTS II - Rs per connection HTS III - Rs per connection HTSS and RTS - Rs per connection BIHAR STATE ELECTRICITY BOARD 135

137 Review Petition for FY and ARR & Tariff Petition for FY R D H C It is submitted that the BSEB has made concerted efforts to comply with the various directives g H C years , , and The status of compliance against each of the directives is provided in this chapter. Directive H Commission Directive given in the Tariff Order for FY Directive 1: Cent Percent Metering The Commission had directed the BSEB not to release any electricity connection to any category of consumer without a correct meter by the Board from the date of the issue of tariff order for FY In Tariff Order for FY Commission has directed BSEB to initiate action and provide meters to about 4 lakh consumers by 31st March 2011 and provide a roadmap to meter the balance services. B EB Target:- 100% metering by March 2013 Achievement:-A Consumer Metering:- SI Category No. of Consum er Number of Metered Consum er 1 33 KV (Govt.) KV (Pvt.) KV HT (Govt.) KV HT (Pvt.) LTCT (Govt. & Pvt.) 6 3 Phase Whole Current Meter (Govt. & Pvt.) 7 Single Phase (Govt. & Pvt.) System Metering:- SI Category No. of Meterin g Point Number of Defective/ Unmetered Consumer Metere d 1 33 KV) KV Def/ Unmetered BIHAR STATE ELECTRICITY BOARD 136

138 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission Directive 2: Replacement of meters:- The Commission directed the BSEB to report the number of nonperforming/ defective meters category wise in the system as on along with an action plan to replace them by 31st January, Directive 3: Setting up of independent third party meter testing arrangement The Commission directed the BSEB to put in place an accredited independent third party meter testing arrangement in all districts under its licensed area and also prepare norms for allowing consumers to purchase their own meters duly tested and certified by such third party testing agency. Directive 4: Efficient meter reading, billing & collection The Commission directed the BSEB to introduce billing through Meter Reading Instrument (MRI) for all HT consumers and large consumers. It also observed that Spot billing preferably by palm top computers may be introduced in the urban areas. Directive 5: Reduction of T&D losses. The Commission directed the BSEB to chalk out and submit a long term action plan for reduction of T&D losses for both technical and nontechnical with relevant load flow studies by B EB 3 11 KV HT (Govt.) BSEB has initiated a time bound program for replacement of all non-functional and defective meters. The target for 100% metering by March 2013 includes replacement of nonfunctional and defective meters also with provision of meters in the premises of unmetered consumers. BSEB do not have separate data of nonperforming/defective meters and unmetered consumers. The cumulative figure of total nonperforming/defective and unmetered consumer upto D BSEB has set-up high-tech testing laboratory at Patna. BSEB has outsourced meter reading, computerized billing and bill distribution all over Bihar. E-payment through debit card and ATM of canara bank has been already started. Other banks like SBI, ICICI are likely to come in the collection network of BSEB. Payment by Rural consumers facilitated through Sahaj Vasudha Kendras spread all over Bihar. Target- June 2012 Average AT&C losses of BSEB from April 2011 to August 2011 are 57.41%. The high AT&C losses despite corrective measures taken by BSEB are due to massive rural electrification and rural loads coming on distribution system of BSEB. This fact H Commission in its Tariff Order for FY dated 1 st June, BIHAR STATE ELECTRICITY BOARD 137

139 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission March Commission has asked BSEB to submit current status of providing hundred percent metering for all Consumers and also metering all feeders and distribution transformers. Commission has opined resources could not have been a constraint to provide meters to all the consumers continuously over the last 5 years. An action plan shall be submitted with definite time schedule for providing meters to all consumers by 31st January Directive 6: Energy Audit The Commission directed the BSEB to replace all such meters and provide correct meters on all feeders from 220KV to 11KV level as well as LT side of the distribution transformer on highest priority. It also stated that the energy audit should be taken up first in all the towns with a population of fifty thousand and above. Directive 7: Pilferage of Electricity The Commission directed the BSEB to constitute a task force is in different zones to which the entire licensee area is to be divided to carry out massive raid to arrest pilferage. In case of detection of such theft/pilferage, the concerned authority of the area and personnel attached to them, who have duties to supervise the work, have to be B EB To bring down T&D losses, BSEB has started a time bound metering programme to achieve 100% metering by March The present status of the metering is provided in the directive 1 above. i) PFC has appointed M/s Pranat Engineering Ltd. under R_APDRP scheme to conduct third party energy audit. Experience gathered will be applied for non-rapdrp area. ii) BSEB is installing ring-fencing meters, system meters and consumer meters in all 64 towns covered under R- APDRP and 7 towns covered under ADB plan. The status as on 08 th November, 2011 is as below: Ring Fencing (33 kv) 5 Ring Fencing (11 kv) 48 Feeder Meter (33 kv) 5 Feeder Meter (11 kv) 4 Consumer Meter (33 kv) 0 Consumer Meter (11 kv) 9 DT Meter 10 i) Special courts under section 135 of Electricity Act, 2003 has been constituted at Patna, Gaya and Muzaffarpur; ii) Proposal of for setting up a special police station for PESU area to curb theft of electricity has been sent to the Government of Bihar; iii) Special task force of BSEB is conducting super checks all over Bihar against theft of power; iv) Criminal prosecutions and departmental proceedings in addition to other disciplinary measures initiated against officers and staff of BSEB found involved in unauthorized use of power by consumers; BIHAR STATE ELECTRICITY BOARD 138

140 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission made answerable for punitive action. Those found committing mischief of pilferage should be booked and penal action should be taken against then. Directive 8: Enumeration of Agriculture Pumpsets & Other Service Connections. The Commission directed the BSEB to submit a report on the action taken to get agricultural and other connections enumerated to identify the unauthorized connection and to regularize them shall be placed before the Commission by 30th June, Directive 9: Quality of Power Supply and Service to Consumer The Commission directed the BSEB to prepare a scheme to restore all lines which have no conductors and to strengthen the distribution system wherever required. Directive 10: Collection of Arrears The Commission directed the BSEB to submit the details of recovery of arrears under the first OTS announced in April 2006 and also the recovery under the second OTS scheme in force from October 2006 onwards. The Commission had asked BSEB asked for the report on recovery of dues from State Government departments and private consumers to be submitted to the Commission by March Directive 11: Asset Register The Commission directed the BSEB to maintain separate asset registers for the 3 businesses viz. B EB BSEB has discussion with BERC as directed. BSEB has conducted Pilot study of collection of data in some villages where 100% metering of agriculture services has been done. The data of pilot study is submitted. i. On account of huge investment needed for restoration of lines which has no conductors, it is not possible for BSEB alone to revive the dead distribution system on its own. ii. However, RGGVY program, electrification for such systems has been proposed and is likely to be completed For FY , BSEB has recovered arrears of Rs Crores from Government departments and Rs Crores from Private consumers. Consumer Outstanding dues as on Collection against (Rs. Crores) dues (Rs. Crores) Government Private Total BSEB has made beginning i) For new asset created under schemes like R- APDRP, RSVY, RGGVY asset register are being created. Maintenance of asset register for all BIHAR STATE ELECTRICITY BOARD 139

141 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission Generation, Transmission and D O B submission that it is very difficult to prepare asset register for each and every item, the Commission directed the Board to constitute teams of B P Offices and other field units to build up the register. Directive 12: Time of Day (ToD) Tariff The Commission directed the BSEB to come up with a plan for introduction of TOD tariff and metering for HT consumers in the first phase followed by LT industries and Non Domestic consumers. Directive 13: Organising Operational Circles as Cost Centers The Commission directed the BSEB to draw out an action plan to organize the cost centers upto division level to make them accountable for their performance on profit and loss account and submit reports to Commission by 31st March T Commission by 31st March The Commission has also directed BSEB to analyze and submit report whether there is any improvement in the performance of the circles after making them cost centers in terms of revenue, revenue collection, T&D loss reduction, consumer service, quality of supply etc. Directive 14: Employee Cost The Commission directed the BSEB to enforce economy and ii) B EB assets requires IT enabled mechanism huge financial investment. Shri Shunglu Committee had noted the poor financial health of utilities i. 100% compliance achieved. ii. Under R-APDRP scheme, ToD compliant meters are being installed. Circle-wise P&L account for FY is provided in Annexure III. i. The detailed zero-based analysis of man-power has been done. BSEB is working with man-power lesser than zero based manpower requirement. BIHAR STATE ELECTRICITY BOARD 140

142 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission austerity measures in their operations and take urgent steps to reduce establishment cost by optimally imposing restrictions on creation of posts, introducing revised work load norms and also reducing posts which are not significant. Commission has asked BSEB to submit the action taken report by June Directive 15: Energy Conservation The Commission directed the BSEB to adopt measures for creating awareness among consumers regarding conservation of energy. Directive 16: APDRP schemes The Commission directed the BSEB to report the status of implementation of these schemes, amount utilized upto 31st December, 2006, the benefits accrued by way of increase in metered sales, reduction of distribution loss, improvement in quality of supply, revenue etc. by 31st March Currently Commission has asked BSEB to submit the report on the benefits accrued by execution of the works under APDRP. No such report has been submitted. The report shall be submitted by June The works programmed under RAPDRP shall also be furnished by June Directive 17: Cost of supply and cross subsidy The Commission directed the BSEB to carry out a study to ascertain voltage-wise and consumer category ii. B EB Circular has been issued for austerity and lesser expenses to all officers. Pilot project for demonstration of energy efficiency means and measures in collaboration with BREDA and BEE(Bureau of Energy Efficiency) has been planned under PESU area. BREDA and BEE have to arrange the pilot projects. i) APDRP has been short closed and restructured as R- APDRP. As such it will be premature to assess the benefits accrued to BSEB under APDRP. ii) R-APDRP part-a is being implemented in 64 towns and ADB plan is being implemented in 7 towns. The benefit under these programmes can be assessed after completion of the same. iii) Under R-APDRP, the status of metering as on 08 th November, 2011 is as below: Ring Fencing (33 kv) 5 Ring Fencing (11 kv) 48 Feeder Meter (33 kv) 5 Feeder Meter (11 kv) 4 Consumer Meter (33 kv) 0 Consumer Meter (11 kv) 9 DT Meter 10 Other SEBs and utility are being contacted for their methodologies. BIHAR STATE ELECTRICITY BOARD 141

143 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission supply. Thereafter, the Commission directed the Board to ensure that such a study got conducted by June Directive 18: Restrictions on consumption of energy The Commission directed the BSEB to educate the consumers to cooperate with the Board in restricting the use of electricity by voluntary effort. A report on the action taken shall be submitted to the Commission by 30 th June B EB i. A demonstration project with the help of BEE and BREDA has been organized in the PESU area. ii. Instruction has been issued to the officers of the Board to spread the energy efficiency and economy Directives given in the Tariff Order for FY Directive 1: Prepaid Meters The Commission directed the BSEB to provide prepaid meters to some domestic consumers as a pilot study to encourage and make the consumers to observe the advantages of having prepaid meter facility. It also observed that subsequently Board may suggest the consumers to purchase the prepaid meters at their own cost by offering some rebate say about 10% in energy charge, with no security for prepaid consumers. The Commission directed the Board to furnish the report on the action taken in this regard by 30th April Directive 2: Star Rating Distribution Transformers The Commission directed the BSEB to go in for procurement of distribution transformers up to 200 kva with minimum of two T was applicable for purchase of all i. BSEB has sent suggestion to CEA for finalization of specification, formulation and finalization of pre-paid meters. ii. It is also learning from the Delhi and Kolkatta iii. Accounting is difficult iv. Software updation like how to charge FPPCA is not possible v. Manufacturers have been invited for presentation on vi. Lot of cases has been found where meter has been by-passed. A committee has been formed to make technical specification. Purchase of next lot of DTs by BSEB will be star rated. BIHAR STATE ELECTRICITY BOARD 142

144 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission new transformers for which tender has not been so far floated / published in the newspaper by the Board. The Commission has directed the Board to furnish the report on the action taken in this regard by 30th April Directive 3: Demand Side Management (DSM) The Commission directed the BSEB to take effective steps for implementation of demand side management in the state. It also directed the Board to report the status of implementation of DSM and TOD Tariff quarterly, with First such report upto 31st March 2011 to be furnished to the Commission by 30th April B EB Officials of BSEB make the consumers aware of DSM during consumer meet. BSEB has organized a demonstration project of energy conservation in PESU area in collaboration with BEE (Bureau of Energy Efficiency) and BREDA. Directive given in the Tariff Order for FY Directive 1: Timely submission of Tariff Petition The Commission directs BSEB to FY to be submitted on or before 15th November This will be essential to ensure that the new tariff is applicable from 1st April Directive 2: Energy Audit The Commission reiterates its earlier Directive No. 8 issued in T O FY directing BSEB to replace meters and provide correct meters on all feeders from 220KV to 11KV level as well as LT side of the distribution transformer on highest priority as well as to undertake energy audit in all the towns with a population of fifty thousand and above. Complied Target:- 100% metering by March 2013 Achievement:-A Consumer Metering:- SI Category No. of Consum er Number of Metered Consum er 1 33 KV (Govt.) KV (Pvt.) KV HT (Govt.) Number of Defective/ Unmetered Consumer BIHAR STATE ELECTRICITY BOARD 143

145 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission B EB 4 11 KV HT (Pvt.) System Metering:- SI Category No. of Meterin g Point Metere d Def/ Unmetered 1 33 KV) KV KV HT (Govt.) Under R-APDRP, the status of metering as on 08 th November, 2011 is as below: Ring Fencing (33 kv) 5 Ring Fencing (11 kv) 48 Feeder Meter (33 kv) 5 Feeder Meter (11 kv) 4 Consumer Meter (33 kv) 0 Consumer Meter (11 kv) 9 DT Meter 10 Directive 3: Estimation of energy consumption levels of Kutir Jyoti Consumer Category & Agriculture sector The Commission directs BSEB to undertake two studies (a) to estimate average energy consumption of the Kutir Jyoti consumers and (b) to estimate average energy consumption of the IAS I consumers. Legitimate costs that accrue to BSEB to conduct the study may be considered in the ARR in the next tariff order. Directive 4: MYT Compliance The Commission directs BSEB submit an Action Taken Report (ATR) on its preparedness to move to MYT framework for tariff PFC has appointed M/s Pranat Engineering Ltd. under R_APDRP scheme to conduct third party energy audit. Experience gathered will be applied for non-rapdrp area. BSEB has conducted pilot studies to estimate average energy consumption of KJ & IAS consumers and the reports are submitted herewith. MYT compliance will be done by successor companies after proposed unbundling of BSEB. BIHAR STATE ELECTRICITY BOARD 144

146 Review Petition for FY and ARR & Tariff Petition for FY Directive H Commission determination not later than 30th September B EB BIHAR STATE ELECTRICITY BOARD 145

147 Review Petition for FY and ARR & Tariff Petition for FY Annexure 1 Work Order copy of Metering & Billing BIHAR STATE ELECTRICITY BOARD 146

148 Review Petition for FY and ARR & Tariff Petition for FY BIHAR STATE ELECTRICITY BOARD 147

149 Review Petition for FY and ARR & Tariff Petition for FY BIHAR STATE ELECTRICITY BOARD 148

150 Review Petition for FY and ARR & Tariff Petition for FY BIHAR STATE ELECTRICITY BOARD 149

151 Review Petition for FY and ARR & Tariff Petition for FY BIHAR STATE ELECTRICITY BOARD 150

152 Review Petition for FY and ARR & Tariff Petition for FY BIHAR STATE ELECTRICITY BOARD 151

153 Review Petition for FY and ARR & Tariff Petition for FY Annexure 2 Letter from Energy Department regarding Priorities for Utilisation of Resource Gap Funding BIHAR STATE ELECTRICITY BOARD 152

154 Review Petition for FY and ARR & Tariff Petition for FY Annexure 3 Circle-wise P&L Account for FY Revenue Account. Particulars. Revenue form Sale of Power Income Revenue Other Income subsidies and grants for R.E.Loss Total Revenue Elecl Circle Saharsa 31,08,07,828-2,53,66,021 33,61,73,849 2 Elecl. Circle Chapra 36,09,69,080-2,52,19,806 38,61,88,886 3 Elecl. Circle Arrah 31,98,13,849-1,83,22,148 33,81,35,997 4 Elecl. Circle Bhagalpur 50,52,41,692-3,47,23,569 53,99,65,261 5 Elecl. Circle Darbhanga 43,44,87,048-2,45,96,681 45,90,83,729 6 Elecl. Circle Gaya 72,66,99,651-5,76,53,389 78,43,53,040 7 Elecl. Circle Motihari 35,80,50,956-2,96,01,083 38,76,52,039 8 Elecl. Circle Munger 55,62,03,115-2,96,58,869 58,58,61,984 9 Elecl. Circle Muzaffarpur 1,31,93,38,911-6,86,54,053 1,38,79,92, Elecl. Circle Nalanda 25,23,51,321-1,90,19,907 27,13,71, Elecl. Circle Patna 2,20,93,02,326-8,00,28,316 2,28,93,30, Elecl. Circle Purnia 70,58,34,611-3,11,52,361 73,69,86, Elecl. Circle Samastipur 65,21,07,174-2,87,17,324 68,08,24, Elecl. Circle Sasaram 45,57,88,460-7,78,99,658 53,36,88, P.E.S.U. (East) 1,99,84,21,699-7,28,03,216 2,07,12,24, P.E.S.U. (West) 2,99,75,62,111-9,16,63,152 3,08,92,25, Transmission ,18,55,50, U.I. Sale ,67,13,633 Total 18,61,52,51,705 8,40,00,00,000 82,50,71,867 27,84,03,23,572 BIHAR STATE ELECTRICITY BOARD 153

155 Review Petition for FY and ARR & Tariff Petition for FY Power Purchase & Gnenration Cost (including employees cost & other cost of generating station) Repairs & Maintenance Employee Costs Expenditure Administratio n & General Expenses Depreciation & Related Debits (Net) Interest and Finance Charges Total Expenditure 1,00,65,52,811 1,04,55,078 16,39,66,900 79,09,711 1,26,93,265 33,14,27,691 1,53,30,05,455 84,46,63,481 2,84,65,446 21,97,84,232 1,05,92,845 2,67,54,480 27,98,13,511 1,41,00,73,996 56,01,69,510 96,15,048 19,05,65,257 1,00,47,994 2,26,92,137 18,83,49,003 98,14,38,949 1,03,68,48,390 1,43,39,732 21,92,87,302 1,56,96,461 3,66,48,399 34,22,37,343 1,66,50,57,625 76,50,13,135 1,84,64,280 23,23,29,799 1,74,20,213 3,50,81,626 25,80,90,388 1,32,63,99,438 1,95,70,37,468 2,83,86,351 64,19,27,857 2,23,00,656 4,28,95,548 64,10,27,583 3,33,35,75,462 72,93,64,186 81,34,307 13,53,99,992 1,30,91,380 2,80,48,209 19,27,41,539 1,10,67,79,614 1,14,03,36,947 1,21,62,922 22,51,54,008 1,24,34,741 3,57,68,224 37,51,94,005 1,80,10,50,846 2,01,18,25,528 1,47,58,637 37,34,18,807 1,94,22,421 3,79,95,679 67,37,92,178 3,13,12,13,251 79,41,99,297 1,15,84,035 45,06,25,519 1,34,41,949 1,25,40,305 26,33,30,503 1,54,57,21,607 3,55,94,03,319 3,61,78,909 29,96,18,605 2,62,20,244 3,71,47,104 1,21,39,77,468 5,17,25,45,649 1,26,01,62,548 1,72,68,168 18,43,72,059 1,77,83,892 3,07,04,373 39,93,65,510 1,90,96,56,548 1,01,26,11,927 3,76,72,199 28,41,18,153 1,75,40,813 2,27,38,746 34,11,85,897 1,71,58,67,733 1,17,17,70,388 9,19,77,548 19,75,36,239 98,57,104 2,91,19,103 37,75,83,603 1,87,78,43,985 2,54,65,06,927 3,51,65,106 32,96,40,575 2,55,81,718 1,58,46,887 86,50,25,316 3,81,77,66,529 3,37,73,45,384 4,82,57,703 49,08,44,230 3,65,50,468 3,51,93,547 1,16,96,69,914 5,15,78,61, ,33,57,38,538-26,45,31,98,718 53,02,64,767 5,40,09,11,744 34,60,17,601 57,16,52,003 9,51,95,51,640 42,82,15,96,472 BIHAR STATE ELECTRICITY BOARD 154

156 Review Petition for FY and ARR & Tariff Petition for FY Other debits Net Prior Period Credit/Charges (Debit) Surplus Deficit Note: - (I) The expenditure incurred by Common Accounting units i.e. DDA (HQ), DDA (Sectt.), A.O. (Security) has been allocated to each operating Supply Circle and all Transmission Circle on the basis of quantum of Power Supplied. As decided vide B letter no. 944 dated ,29,18,849 (1,10,39,12,757) (II) - 2,51,69,544 (99,87,15,567) 25,000 1,61,45,913 (62,71,82,039) 6,75,000 4,14,55,608 (1,08,43,11,755) (III) - 2,34,35,051 (84,38,80,658) Net expenditure (i.e. expenditure-income) of Technical Services has been apportioned over the operating circles on the basis of nos. of Transformers repaired and supplied by the Transformer repairing workshop to the circles. Quantum of Power Supplied has been obtained from Energy Accounting Department. 50,000 12,40,01,202 (2,42,52,71,220) 2,50,000 1,68,49,862 (70,25,27,713) - 3,41,53,396 (1,18,10,35,466) (IV) 15,50,000 4,65,64,200 (1,69,82,06,087) 50,000 2,38,04,625 (1,25,05,95,755) Cost of Generation (including employees cost and other expenditure) for units generated by own Generating Station i.e. B.T.P.S. has been added in cost of Power Purchase. 3,00,000 12,76,90,146 (2,75,58,24,861) (V) - 3,33,18,834 (1,13,93,50,743) - 3,87,61,203 (99,62,82,032) Net expenditure (i.e. expenditure - income) incurred by R.E. Department and P.S.C. Pole wing have been capitalised. - 3,49,16,777 (1,30,92,39,090) (VI) The figures appearing in various heads/ schedules of 1,00,000 7,96,20,610 (1,66,70,21,005) adopted Annual Accounts for Board as a whole has been regrouped/ rearranged/ clubbed to - 5,99,93,972 (2,00,86,42,011) arrive out Profit/Loss Accounts of Operating Units (1,10,36,36,860) 37,67,13,633 31,75,000 86,55,25,915 (14,11,89,21,985) BIHAR STATE ELECTRICITY BOARD 155

157 BEFORE THE BIHAR ELECTRICITY REGULATORY COMMISSION PATNA Formats For Review Petition for FY and Aggregate Revenue from charges or Aggregate Revenue Requirement(ARR) & Tariff Petition for FY Volume -II Filed by:- BIHAR STATE ELECTRICITY BOARD C O V B J N M P E B N

158 Formats for Tariff Petition of ARR for FY Index Format No. Details Page No. Format 1 Category Wise Revenue 3 Format 2 Technical and commercial details of Thermal Plants 4 Format 3 Maintenance Schedule of Thermal Power Stations 5 Format 4 Power share from other sources 7 Format 5 Energy balance 8 Format 6 Entitlement from Central generating stations 9 Format 7 Power purchase cost 11 Format 8 Employee cost 14 Format 9 Number of employees 16 Format 10 Employees Productivity Parameters 17 Format 11 Value of Assets and Depreciation charges 18 Format 12 Depreciation charges 24 Format 13 Repair and Maintenance expenses 25 Format 14 Administration and general expenses 26 Format 15 Details of loans for the year 27 Format 16 Interest and finance charges 30 Format 17 Interest capitalized 31 Format 18 Information regarding restructuring of outstanding loans during the Year 32 Format 19 Lease details 33 Format 20 Non - tariff Income 34 Format 21 Investment Plan (Scheme - wise) 35 Format 22 Investment Plan (Year - wise) 36 Format 23 Capital Base and Return 37 Format 24 Cash Flow Statement 38 Format 25 Original cost of fixed assets 39 Format 26 W P 40 Format 27 Revenue from Existing tariff 41 Format 28 O ARR 42 Format 29 Information regarding whole sale price Index 45 Format 30 Information regarding amount of Equity and Loan 46 Format 31 Information regarding revenue from other business 47 Format 32 Information regarding Bad and Doubtful debts 48 Format 33 Information regarding Working Capital 49 Format 34 Information regarding Foreign Exchange Rate 50

159 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-1 Sl. No. PROJECTED CATEGORY WISE REVENUE DURING FY ON EXISTING & PROPOSED TARIFF Estimated No of Consumers as on Revenue( Rs. Crores) 2013 Sale of Category No of Consumers Connected Load (kw) Energy (MU) From Existing Tariff in Rs. Cr. From proposed Tariff in Rs. Cr Kutir Joyti (Rural) - Unmetered 3,02,914 18, Kutir Joyti (Rural) - Metered 24,55,970 1,47, Kutir Joyti (Urban) 3, Domestic - I 11,59,387 10,73,871 1, Domestic - II 13,27,779 16,01,860 1, Domestic - III N.D.S.-I(Rural) 23,795 29, N.D.S.-II (Urban) 2,00,048 5,63, N.D.S.-III(Temple etc) 188 2, Irrigation IAS-I(Private) 51,663 1,82, Irrigation IAS-II(Govt.) 5,810 87, LT Industrial L.T.I.S.-I 19,317 1,34, LT Industrial L.T.I.S.-II 1,371 86, Public Water work(pww) , Street light-i (Metered) Street light-ii (Un-Metered) 206 4, Street Light III High Tension HTS-I 976 2,44, High Tension HTS-II 40 80, High Tension HTS-III 3 47, H.T.S.S.(Induction furnace) 15 50, Rly. Traction 25 1,99, Total 55,54,152 45,75,704 7,313 2, , Page 3

160 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-2 TECHNICAL AND COMMERCIAL DETAILS OF THERMAL PLANTS NAME OF THE THERMAL POWER PLANT -Barauni T.P.S S. N. Particulars Units FY FY FY FY (Actual) (Approved) (RE) (Projected) Gross Generation MUs Auxiliary Consumption MUs Net Generation MUs Capacity MW Derated Capacity MW Plant Load Factor % 11.44% 32.62% 10.45% 16.09% Auxiliary Consumption % 17.95% 10.00% 15.00% 12.00% 7 Station Heat Rate kcal/kwh 4,103 4,316 4,000 3,700 8 Sp. Oil Consumption ml/kwh Gross Calorific Value of Coal kcal/kg 3,858 4,284 3,800 3, Calorific Value of Oil kcal/l 9,950 10,000 9,996 9, Overall Heat G Cal 9,04,534 12,94,878 8,08,009 11,46, Heat from Oil G Cal 69,046 30,000 70,671 92, Heat from Coal G Cal 8,35,488 12,64,878 7,37,337 10,54, Transit losses % 0% 3.8% 0% 0% 15 Actual Oil Consumption kl 6,939 3,000 7,070 9, Actual Coal Consumption MT 2,16,560 3,06,948 1,94,036 2,84, Specific Coal Consumption kg/kwh Price of Coal Rs./MT 1, , , , Price of Oil Rs/kl 31, , , , Coal Cost Rs Crores Oil Cost Rs Crores Fuel Cost Rs Crores Other Fuel related Cost Rs Crores Total Fuel Cost Rs Crores Fuel Cost/Unit Gross Rs/kWh Fuel Cost/Unit Net Rs/kWh Page 4

161 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-3 Sl. No. Name of Power Station Name of Unit 1 Barauni TPS I 2 Barauni TPS II MAINTENANCE SCHEDULE OF THERMAL POWER STATION IN THE FY Period Total days Type of Maintenance Retired since Retired since Barauni TPS III 4 Barauni TPS IV 5 Barauni TPS V 6 Barauni TPS VI Retired since Shut down since Shut down since days days days days Days Under planned shut down from to for restoration work.under planned shut down from to for canniblisation of eqipments/spares from it for resoration. In conituation to the previous year under planned shut down from to for restoration work Forced but subsequently under planned shut down to replace damaged IP turbine rotor from to The unit had to go under planned shut doen from for 1 month for attending annuniciation system, DVAR and GT 6 breaker replecemnet but could not be availed. Due to problem in generator bushing, it was put under planned shut down from to from condensor tube cleaning, rectification work in generator bushing defect and flexible connector alongwith replecement work of complete annunciation system. Annual Maintenance work like: (a) Condensor tube cleaning (b) Replacement of coal Compartment Assembly Repairing of pent house, reectory and application of insulation pad (d) Replacement of transformer oil in OLTC of station Transformer and associated work. Page 5

162 7 Barauni TPS VII /07/11 to 25/07/11 12/08/11 to 21/08/11 June 2012 to March 2013 Forced shutdown for economiservt/l but latter on Planned for (a) Grounding of fly ash of ESP hoper (b) Adjustment of secondary air dampner Forced shutdown for attending super heater T/L but later on Planned for the work in diversion line of deashing pipe. Dismantling of the Unit and its R & M work from June days Work of unit no 6 (110 MW) as well as for R & M work. Under planned shut down from to for r & M work including its days engineering /RLA studies etc. Under planned shut down from to for R & M work including its days engineering /RLA studies etc. Under planned shut down from to for R & M work including its days engineering /RLA studies etc. Plant Under shut Down from 1/04/2010 to 31/03/2011 for R & M work including its engineering/ RLA studies etc.its R & M work is in progress from 21/06/ days days Under planned shut down for R & M work. April 2012 to June 2012( days) Under planned shut down for R & M work. Page 6

163 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY POWER SHARE FROM OTHER SOURCES IN (MU) FORMAT - 4 Sl. No. Generating Stations FY FY FY (Actual) (RE) (Projected) NTPC 1 Farakka 3, , , Talchar 2, , , Kahalgaon 2, , , KBUNL NVVNL Total (NTPC) 8, , , NHPC 6 Rangit Teesta Total (NHPC) PTC 8 Chukka Tala Total (PTC) 1, , , Others 10 Nepal BSHPC New Swadeshi Sugar Mill RE purchase Solar RE purchase Other Medium Term/UI , , Total Others , , Grand Total 10,978 11,931 14,142 Page 7

164 Sl. No. Item FY (Actual) FY (As per BSEB Loss Projection) FY (As per BERC Loss Approved) FY (As per BSEB Loss Projection) (MU) FY (As per BERC Loss Approved) Energy Sales within State 5,291 5,929 5,929 7,313 7,313 1 Sale from additional Power availability Energy outside State (Nepal) Sale in bileteral trade/ui Total Sales 6,139 6,948 6,948 8,427 8,427 2 T&D Losses 43.59% 42% 29% 41% 27.5% T&D Losses ,819 2,718 5,652 3,085 3 Energy Requirement 10,883 11,768 9,667 14,079 11,512 4 Energy Availability Own Generation Total Power Purchase from long term 10,978 5 FORMAT - 5 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY ENERGY BALANCE sources Transmission loss in regional losses 2.63% 3.31% 3.31% 3.31% 3.31% Transmission loss in regional losses Net Power Availability 10,883 11,768 11,768 14,079 14,079 7 Disallowable Power Purchase - - 2,101-2,567 Page 8

165 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-6 ENTITELMENT FROM CENTRAL GENERATING STATIONS YEAR : (RE) Firm As CERC Aux Energy Sl.No Station Capacity Gen (MU) PLF(%) allocation Cons(MW) sent Firm Energy Projected Drawl Actual Drawl (MW) (MW) % (MW) % Out (MU) Entitlement (MU) (MU) I NTPC 1 Farakka Kahalgaon 1 st ph Kahalgaon 2 nd ph Talchar II PTC Chukka TALA III NHPC Rangit Teesta HE IV Other Sourses BSHPC Nepal Kanti BUNL Sugar Mills RE purchase Solar RE purchase Other Medium Term/UI Total Page 9

166 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-6 ENTITELMENT FROM CENTRAL GENERATING STATIONS YEAR : (Projetion) Firm As CERC Aux Energy Sl.No Station Capacity Gen (MU) PLF(%) allocation Cons(MW) sent Firm Energy Projected Drawl Actual Drawl (MW) (MW) % (MW) % Out (MU) Entitlement (MU) (MU) I NTPC 1 Farakka Kahalgaon 1 st ph Kahalgaon 2 nd ph Talchar II PTC Chukka TALA III NHPC Rangit Teesta HE IV Other Sourses BSHPC Nepal Kanti BUNL Sugar Mills RE purchase Solar RE purchase Other Medium Term/UI Total Page 10

167 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-7 Year (Actual) POWER PURCHASE COST S.No Source Purchase External Energy Projected AFC BSEB share VC+FPA FC VC+FPA Others Total In Cr In MU In Rs/YR In Cr Rs/Unit In Cr In Cr In Cr In Cr I NTPC 1 Farakka Kahalgaon Talchar II NHPC Rangit Teesta HE III PTC Chukka Tala IV Other soures BSHPC Nepal Kanti BUNL NSSM Renewable V purchase VI Other charge Total Page 11

168 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-7 POWER PURCHASE COST Year (RE) S.No Source Purchase External Energy BSEB AFC Projected share VC+FPA FC VC+FPA Others Total In Cr In MU In Rs/YR In Cr Rs/Unit In Cr In Cr In Cr In Cr I NTPC 1 Farakka 2, ,260 2 Kahalgaon 2, Talchar 2, II NHPC Rangit Teesta HE III PTC Chukka Tala IV Other soures BSHPC Nepal Kanti BUNL NSSM Medium Term 1, V Renewable purchase VI Other charge 190 Total 11, Page 12

169 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-7 POWER PURCHASE COST Year (Projection) S.N. Source Purchase External Energy BSEB AFC Projected share VC+FPA FC VC+FPA Others Total In Cr In MU In Rs/YR In Cr Rs/Unit In Cr In Cr In Cr In Cr I NTPC 1 Farakka ,260 2 Kahalgaon Talchar II NHPC Rangit Teesta HE III PTC Chukka Tala IV Other soures BSHPC Nepal Kanti BUNL Cogeneration (NSSM) Medium Term ,444 Renewable purchase V VI Other charge 190 Total ,139 Page 13

170 FORMAT - 8 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Employee cost S.N (Rs. In Crores) FY (Projection) Particulars FY FY (Actual) (RE) SALARIES & ALLOWANCES 1 Basic Pay+Special Pay 2 Dearness Pay Dearness Allowance House rent Allowance Fixed medical allowance Medical reimbursement charges Over time payment Other allowances (detailed list to be attached) Generation incentive Bonus Total Leave encashment Gratuity Commutation of Pension Workman compensation Ex- gratia Total Pension Payment 19 Basic Pension Dearness Pension Any other expenses Total Total ( ) Payment made for unfunded liabilities Increase in employee cost Due to New Recruitments Grand Total (25+26) Less: Employee cost capitalises Net Employee Cost Page 14

171 FORMAT - 8 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Details of other Allowances Reference of Item No. 8 of the Format- 8 (Rs. In Crores) FY (Projection) Particulars FY FY (Actual) (RE) Compensatory allowance Conveyance allowance City compensatory allowance Cash handling allowance Others Leave Travel Asistance Motorcycle Allowance Staff welfare expenses Total Reference of Item No. 21 of the Format-8 (Rs. In Crores) Particulars FY FY FY (Actual) (RE) (Projection) PF CPS Total Page 15

172 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 9 TOTAL NO OF EMPLOYEES Sl. No. Particulars FY FY FY (Actual) (RE) (Projected) Number of employees as on 1st April 12,343 12,506 12,525 2(a) 2(b) Number of employees on deputation b. Appointed Regular /Compensate/Contract 1, Total Number of employees (1+2) 14,102 13,229 12,968 4 Number of employees retired / retiring during the year 1, Number of employees at the end of the year (3-4) 12,506 12,525 12,356 Page 16

173 FORMAT - 10 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY EMPLOYEE PRODUCTIVITY PARAMETERS Sl.No Particulars FY FY FY (Actuals) (RE) (Projected) Number of consumers 27,87,032 39,49,483 55,54,152 2 Connected load in kw 35,33,438 40,73,319 45,75,704 3 Line circuit in KM (400 KV upto L.T) 4 Energy sold in MU 5,291 5,929 7,313 5 Employees per MU of energy sold No. of Employees 12,425 12,516 12,441 7 Employees per 1000 consumers Share of employees cost in total costs 19.53% 15.22% 7.83% Page 17

174 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 11 Sl.No VALUE OF ASSETS & DEPRECIATION CHARGES FOR THE FY (Actuals) Particulars Assets value at the beginning of the FY Asset Reallocationtraf To VPGCL Depreciation charges In Rs. Accumulated depreciation (i) Thermal 1 Land and land rights Buildings ,70, Hydraulic works ,95, Other civil works ,00, Plant and Machniery ,73,89, Lines and cable network Vehicles Furniture and Fixtures Office equipment Others Total 3,09,68,94,501 2,42,55,001 2,33,81,10,980 (ii) Hydel 1 Land and land rights 1,79, Buildings 3,28,58,156-2,32,37,406 3 Hydraulic works 2,54,319-1,54,902 4 Other civil works 83,817-40,096 5 Plant and Machniery 4,20,61,419-3,78,55,277 6 Lines and cable network 25,12,714-3,93,994 7 Vehicles Furniture and Fixtures Office equipment Others Total 7,79,49,814 6,16,81,675 (iii) Gas Turbine 2 Buildings 3 Hydraulic works 4 Other civil works 5 Plant & Machniery 6 Lines & cable network 7 Vehicles 8 Furniture & Fixatures 9 Office equipment 10 Others Page 18

175 Sl.No Particulars Assets value at the beginning of the FY Asset Reallocationtraf To BSHPC Depreciation charges Accumulated depreciation (v) Transmission 1 Land and land rights Buildings ,32,039 13,60,73,732 3 Hydraulic works 0 5,882 55,351 4 Other civil works ,74,241 3,85,48,317 5 Plant and Machniery ,58,68,644 1,98,49,40,709 6 Lines and cable network ,34,84,512 2,66,64,44,034 7 Vehicles ,74,287 8 Furniture and Fixtures ,136 66,18,297 9 Office equipment ,735 6,24, Other Total 6,87,96,32,632 14,56,59,189 4,83,73,78,786 (vi) Distribution 1 Land and land rights Buildings ,00,08,280 40,21,97,401 3 Hydraulic works ,365 4 Other civil works ,10,631 2,70,38,212 5 Plant and Machniery ,09,32,496 3,25,66,87,521 6 Lines and cable network ,20,22,068 7,63,07,70,479 7 Vehicles ,235 2,17,56,662 8 Furniture and Fixtures ,79,659 2,03,75,522 9 Office equipment ,86,584 2,43,92, Others ,35,529 17,99,22, Asset taken over from Lic Pending financial Valuation 3,31,48, Total 18,59,35,24,706 72,00,58,937 11,59,62,90,388 Grand Total 28,64,80,01,653 88,99,73,127 18,83,34,61,829 Page 19

176 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 11 Sl.No VALUE OF ASSETS & DEPRECIATION CHARGES FOR THE FY (RE) Particulars Assets value at the beginning of the FY Asset Reallocationtraf To VPGCL Depreciation charges In Rs. Accumulated depreciation (i) Thermal 1 Land and land rights 5,04,30, Buildings 31,02,72,255 1,69,57,598 21,53,52,525 3 Hydraulic works 9,46,23,576 69,18,936 7,89,07,066 4 Other civil works 9,03,66,089 47,79,516 6,10,31,128 5 Plant and Machniery 2,58,91,03,170 18,00,63,598 1,89,01,50,441 6 Lines and cable network 9,28,90,750 58,15,447 8,36,01,675 7 Vehicles 2,92,35,594 32,93,155 2,63,12,035 8 Furniture and Fixtures 38,24,999 2,87,086 38,76,939 9 Office equipment 18,43,516 1,38,365 16,59, Others 22,86,702 1,43,159 20,58, Total 3,26,48,77,024 21,83,96,861 2,36,29,49,005 (ii) Hydel 1 Land and land rights 1,79, Buildings 3,28,58,156-2,32,37,406 3 Hydraulic works 2,54,319-1,54,902 4 Other civil works 83,817-40,096 5 Plant and Machniery 4,20,61,419-3,78,55,277 6 Lines and cable network 25,12,714-3,93,994 7 Vehicles Furniture and Fixtures Office equipment Others Total 7,79,49,814 6,16,81,675 (iii) Gas Turbine 2 Buildings 3 Hydraulic works 4 Other civil works 5 Plant & Machniery 6 Lines & cable network 7 Vehicles 8 Furniture & Fixatures 9 Office equipment 10 Others Page 20

177 Sl.No Particulars Assets value at the beginning of the FY Asset Reallocationtraf To BSHPC Depreciation charges Accumulated depreciation (v) Transmission 1 Land and land rights 5,12,54, Buildings 26,88,09,254 67,50,982 14,10,05,771 3 Hydraulic works ,351 4 Other civil works 8,58,00,148 18,92,072 3,98,59,808 5 Plant and Machniery 2,80,99,08,922 9,67,48,076 2,05,16,31,172 6 Lines and cable network 4,17,06,06,186 12,21,51,666 2,74,39,82,700 7 Vehicles 45,26,985 87,129 40,74,287 8 Furniture and Fixtures 75,02,522 1,56,350 66,78,433 9 Office equipment 7,71,946 43,646 6,57, Other Total 7,39,91,80,939 22,78,29,921 4,98,79,45,329 (vi) Distribution 1 Land and land rights 13,88,16, Buildings 67,15,65,331 1,35,86,250 41,22,29,578 3 Hydraulic works 19, ,820 4 Other civil works 9,28,71,643 18,40,192 2,83,86,907 5 Plant and Machniery 8,05,83,52,945 32,43,27,258 3,51,35,97,410 6 Lines and cable network 18,46,68,83,417 74,73,21,887 8,22,35,95,696 7 Vehicles 2,41,74,066 3,63,886 2,17,56,662 8 Furniture and Fixtures 2,35,50,692 6,16,748 2,07,56,060 9 Office equipment 5,42,49,081 37,41,368 2,75,89, Others 25,14,26,336 41,23,603 18,19,42, Asset taken over from Lic Pending financial Valuation 3,68,31,139 3,31,48, Total 27,81,87,41,257 1,09,59,21,812 12,46,30,04,749 Grand Total 38,56,07,49,034 1,54,21,48,594 19,87,55,80,758 Page 21

178 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 11 Sl.No VALUE OF ASSETS & DEPRECIATION CHARGES FOR THE FY (Projection) Particulars Assets value at the beginning of the FY Asset Reallocationtraf To VPGCL Depreciation charges In Rs. Accumulated depreciation (i) Thermal 1 Land and land rights Buildings ,71,10,306 26,24,62,831 3 Hydraulic works ,14,55,782 10,03,62,848 4 Other civil works ,35,61,424 7,45,92,552 5 Plant and Machniery ,78,22,762 2,46,79,73,204 6 Lines and cable network ,00,86, ,36,87,757 7 Vehicles ,13,74, ,76,86,326 8 Furniture and Fixtures ,91, ,68,510 9 Office equipment ,77, ,37, Others ,94, ,52, Total 11,00,72,39,496 69,33,74,583 3,05,63,23,588 (ii) Hydel 1 Land and land rights 1,79, Buildings 3,28,58,156-2,32,37,406 3 Hydraulic works 2,54,319-1,54,902 4 Other civil works 83,817-40,096 5 Plant and Machniery 4,20,61,419-3,78,55,277 6 Lines and cable network 25,12,714-3,93,994 7 Vehicles Furniture and Fixtures Office equipment Others Total 7,79,49,814 6,16,81,675 (iii) Gas Turbine 2 Buildings 3 Hydraulic works 4 Other civil works 5 Plant & Machniery 6 Lines & cable network 7 Vehicles 8 Furniture & Fixatures 9 Office equipment 10 Others Page 22

179 Sl.No Particulars Assets value at the beginning of the FY Asset Reallocationtraf To BSHPC Depreciation charges Accumulated depreciation (v) Transmission 1 Land and land rights Buildings ,12,02,725 15,22,08,496 3 Hydraulic works ,351 4 Other civil works ,13,006 4,31,72,814 5 Plant and Machniery ,03,12,125 2,22,19,43,298 6 Lines and cable network ,13,39,076 2,97,53,21,776 7 Vehicles ,00, ,74,657 8 Furniture and Fixtures ,91,828 70,70,261 9 Office equipment ,875 7,25, Other Total 10,39,72,52,267 41,69,27,006 5,40,48,72,335 (vi) Distribution 1 Land and land rights Buildings ,28,95,725 43,51,25,303 3 Hydraulic works ,050 2,870 4 Other civil works ,27,612 3,15,14,519 5 Plant and Machniery ,09,19,100 4,01,45,16,510 6 Lines and cable network ,15,20,07,681 9,37,56,03,378 7 Vehicles ,17,041 2,30,73,703 8 Furniture and Fixtures ,35,474 2,19,91,534 9 Office equipment ,66,603 3,27,56, Others ,33,394 19,15,76, Asset taken over from Lic Pending financial Valuation ,31,48, Total 36,62,28,15,385 1,69,63,03,680 14,15,93,08,429 Grand Total 58,10,52,56,961 2,80,66,05,270 22,68,21,86,028 Page 23

180 FORMAT - 12 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Depreciation Charges (In Rs.) Sl.No Item Assets as on Depreciation for Assets as on April Depreciation for Assets as on April Depreciation for April 1,2010 FY ,2011 FY ,2012 FY Thermal ,42,55,001 3,26,48,77,024 21,83,96,861 11,00,72,39,496 69,33,74,583 2 Hydro ,79,49,814-7,79,49,814-3 Internal combustion Transmission ,56,59,189 7,39,91,80,939 22,78,29,921 10,39,72,52,267 41,69,27,006 5 Distribution ,00,58,937 27,81,87,41,257 1,09,59,21,812 36,62,28,15,385 1,69,63,03,680 6 Others Total 28,64,80,01,653 88,99,73,127 38,56,07,49,034 1,54,21,48,594 58,10,52,56,961 2,80,66,05,270 Page 24

181 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 13 REPAIR & MAINTENANCE EXPENSES Rs. In Crores Sl. No. Particulars FY FY FY FY (Actual) (Approved) (RE) (Projected) 1 Plant & Machinery Building Hydraulic works Civil Work Line cable & network Vehicles Furniture & fixtures Office equipments Operating expenses Total expenses procured from Board's Hdqrs.for R&M 11 Net Expenses Cost of water & Other Misc. Charges Total R&M Expenses charged Page 25

182 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 14 ADMINISTRATION & GENERAL EXPENSES ( Rs. In Crores) Sl. No. Particulars FY FY FY (Actual) (RE) (Projected) 1 Rent, rates & taxes Insurance Telephone, postage &Telegrams Legal Charges Audit Fees Consultancy fees Technical fees Other professional charges Conveyance & travel expenses Others(Details as below) Freight Total expenses Less Capitalised Net expenses Add Prior period* Total A&G Expenses Metering, Billing and collection Total A&G Expenses Other Expenses. 1 Fees & Subscription Books & Periodicals Printing & Stationary Advertisement Water Charges Electricity Charges Entertainment Charges Computer Billing Home Guard/ Security Guard Franchisee Commission+B Franchisee Incentive Miscellaneous Expenses Total Page 26

183 For FY (Actual) Sr. Institution No. 1 FORMAT ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Opening Loan Addition Repayment Closing Loan Rs. In Crores Interest State Govt (a) Plan Loan 1, , REC RGGVY LIC L.D. bank under - - ARDC IDBI CEA PFC Public Bond Centrally Sponsored Schemes ( Loans are not allocated to BSEB by State Government) Total 1, , Page 27

184 For FY (RE) Sr. Institution No. 1 FORMAT ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Opening Loan Addition Repayment Closing Loan Rs. In Crores Interest State Govt (a) Plan Loan 2, , , REC RGGVY LIC L.D. bank under - - ARDC IDBI CEA PFC Public Bond Centrally - Sponsored Schemes ( Loans are not allocated to BSEB by State Government) Total 2, , , Page 28

185 For FY (Projection) Sr. Institution No. 1 FORMAT ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Opening Loan Addition Repayment Closing Loan Rs.In Crores Interest State Govt (a) Plan Loan 3, , , REC RGGVY LIC L.D. bank under - - ARDC IDBI CEA PFC Public Bond Centrally - Sponsored Schemes ( Loans are not allocated to BSEB by State Government) Total 4, , , Page 29

186 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 16 INTEREST & FINANCIAL CHARGES Rs. In Crores Sl. No. Institution FY FY FY (Actual) (RE) (Projected) State Govt (a) Plan Loan REC RGGVY LIC L.D. bank under ARDC IDBI CEA PFC Public Bond Centrally Sponsored Schemes ( Loans are not allocated to BSEB by State Government) 11 Total Page 30

187 Sl. No. Particulars INTEREST CAPITALIZED FY (Actual) FY (RE) FORMAT - 17 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY (In Rs.) FY (Projection) 1 Generation 24,85,17, Transmission 3,15, Distribution 11,66, BSEB 25,00,00, Page 31

188 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding restructuring of outstanding loans during the year FORMAT - 18 S.N Source of loan Amount of original loan Old rate of interest Amount already restructured Revised rate of interest (Rs. in lakhs) Amount now New rate being of restructured interest NIL Page 32

189 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Lease details FORMAT - 19 S.N Name of Lesser Gross Assets (Rs. in crores) Lease earned on Lease Rentals Primary Period ended / ending by (Rs. in lakhs) Secondary period ending by NIL Page 33

190 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT - 20 NON TARIFF INCOME (Rs. In Crores) Sl. No. Particulars FY FY FY (Actual) (RE) (Projected) Meter/Service rent Late payment surcharge (on basis of Collection) Theft / pilferage of energy Misc. receipts Misc. charges (except PLEC) Wheeling charges Interest on staff loans & advance Income from trading Income from welfare activities Rental Tender Registration fee Interest of Bank Deposit Rebate & discount received Incentive for timely paymentof installment against loan to PFC Incentive for timely paymentof installment against power purchase bills Total Income Add Prior period income Total Non tariff income Page 34

191 FORMAT - 21 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Investment Plan (Scheme-wise) Funds received under deifferent schemes In Rs. Crore S.N. Name of Scheme FY (Actual) FY (RE) FY (Projection) 1 Generation (a) Ongoing schemes , , (b) BRGF Sub Total , , Transmission (i) BRGF (ii) Mahatma Gandhi Setu Cable crossing (iii) Ongoing Scheme Sub Total Distribution (i) Ongoing Scheme (ii) APDRP (iii) R-APDRP (iv) BRGF (v) ADB (vi) PMGY (vii) MNP (viii) Tal Diara (ix) Border Area (x) ACA (xi) RGGVY (xii) Deposit Work (xiii) Others works (Xiv) Others Capital works Sub Total , , Total 1, , , Page 35

192 FORMAT - 22 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Schemewise expenditure(provisional) FY (Actual) FY (RE) In Rs. Crores FY (Projection) S.N. Name of Scheme 1 Generation (a) Ongoing schemes , , (b) BRGF Sub Total , , Transmission (i) BRGF Mahatma Gandhi Setu Cable crossing (ii) (iii) Ongoing Scheme Sub Total Distribution (i) Ongoing Scheme (ii) APDRP (iii) R-APDRP (iv) BRGF (v) ADB (vi) PMGY (vii) MNP (viii) Tal Diara (ix) Border Area (x) ACA (xi) RGGVY (xii) Deposit Work (xiii) Others works (Xiv) Others Capital works Sub Total , , Total 1, , , Page 36

193 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY FORMAT-23 CAPITAL BASE & RETURN In Rs. Sr. FY FY Particulars FY (RE) No. (Actual) (Projected) Capital at beginging of the year 28,64,80,01,653 38,56,07,49,034 58,10,52,56,961 2 Less accumulated depreciation 17,94,34,88,702 18,83,34,88,702 21,41,77,29,352 3 Net capital at beginning of the year 10,70,45,12,951 19,72,72,60,332 36,68,75,27,610 4 Less accumulated consumer contribution 41,26,44,629 69,58,42,629 97,96,42,629 5 Net fixed at beginning of the year 10,29,18,68,322 19,03,14,17,703 35,70,78,84,981 6 Reasobable 3% of NFA S.N Particulars FY (Actual) FY (RE) FY (Projected) Work in progress As on 31st March of previous year 1 8,81,20,22,761 12,82,04,22,017 25,90,78,36,090 2 Add capital expenditure during current yeartotal 13,92,11,46,637 32,63,19,22,000 43,51,87,70,000 3 Less transferred to fixed assets 9,91,27,47,381 19,54,45,07,927 29,85,34,40,618 As on 31st March of current year 4 12,82,04,22,017 25,90,78,36,090 39,57,31,65,472 S.N Particulars FY FY (RE) FY (Actual) (Projected) Accumulated Depreciation 1 As on 31st March of previous year 17,94,34,88,702 19,87,55,80,758 22,68,21,86,028 2 Add: Depreciation for current year 89,00,00,000 1,54,21,48,594 2,80,66,05,270 3 As on 31st March of current year 18,83,34,88,702 21,41,77,29,352 25,48,87,91,298 Consumers Contribution 1 As on 31st March of previous year 41,26,44,629 47,46,81,242 1,13,46,81,242 2 Addition during current year 6,20,36,613 66,00,00,000 65,86,00,000 3 As on 31st March of current year 47,46,81,242 1,13,46,81,242 1,79,32,81,242 Page 37

194 FORMAT ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Cash Flow Statement (Rs. in lakhs) Sl. no. Month Credit Debit Sources of receipt Amount Particulars of Amount payment April 2 May 3 June 4 July 5 August 6 September 7 October 8 November 9 December 10 January 11 February 12 March Total Deficit Receipt Revenue from sale of power Non tariff income State Govt. Grant Total Payment Cost of fuel Cost of Power Purchase Employee costs (Net) R & M Adm. & Gen. Expenses Interest charges Interest on Regulatory asset Return on Consumer security deposit Total N/A N/A Page 38

195 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Format-25 S. N. Particulars Closing balance at the end of current year (Actual) Addition during Ensuing Year Deduction during the year ORIGINAL COST OF FIXED ASSETS Closing balance at the end of current year (Actual) Addition during Ensuing Year Closing balance at the end of current year (Actual) Addition during Ensuing Year In Rs. Closing balance at the end of current year (Actual) 1 Generation 3,09,68,94,501 16,79,82,523-3,26,48,77,024 7,74,23,62,472 11,00,72,39,496 11,25,67,68,609 22,26,40,08,104 (Thermal) 2 Generation 7,79,49, ,79,49,814 7,79,49,814 7,79,49,814 (Hydel) 3 Transmission 6,87,96,32,632 58,19,46,478 6,23,98,171 7,39,91,80,939 2,99,80,71,328 10,39,72,52,267 4,33,95,12,947 14,73,67,65,214 4 Distribution 18,59,35,24,706 9,30,42,42,274 7,90,25,723 27,81,87,41,257 8,80,40,74,128 36,62,28,15,385 14,25,71,59,063 50,87,99,74,448 Total 28,64,80,01,653 10,05,41,71,275 14,14,23,894 38,56,07,49,034 19,54,45,07,927 58,10,52,56,961 29,85,34,40,619 87,95,86,97,580 Page 39

196 BSEB Sl. No. FORMAT - 26 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Works - in - progress Rs. In Crores FY (Projected) Particulars FY FY (Actual) (RE) Opening balance 881 1,282 2,591 2 Add: New investments 1,392 3,263 4,352 3 Total 2,273 4,545 6,943 4 Less investment capitalised 991 1,954 2,985 5 Closing balance 1,282 2,591 3,957 Page 40

197 FORMAT - 27 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Revenue from Existing Tariff (in Rs. crores) S.N Particulars FY (Projection) Domestic Service 1 Kutir Joyti (Rural) - Unmetered Kutir Joyti (Rural) - Metered Kutir Joyti (Urban) Domestic Service-I Unmetered Domestic Service II (DS II)Metered Domestic Service-III (DS III)Metered 0.35 Sub - Total Non Domestic Services (NDS) 6 NDS-I (Unmetered) NDS-II NDS-III 5.39 Sub - Total Irrigation and Agriucltural Service 9 IAS - I Private (Unmetered) IAS - II Govt. (Unmetered) Sub - Total L.T. Industrial Service (L.T.I.S) 11 LTIS-I LTIS-II Sub - Total Public Water Works(PWW) Street light Service 14 SS-I(Metered) SS-II(Unmetered) SS-III - Sub - Total 9.18 High Tension Service 17 High Tension HTS kv High Tension Service (HTS II) kv High Tension Service (EHTI) High Tension specified service (HTSS) Sub - Total Railway Traction Service (RTS) Common Pool - (U.I) 23 Outside State (Nepal) Sub - Total Grand Total Page 41

198 FORMAT - 28 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Detail of ARR for FY S.N Item of expenditure Proposed Approved by the Commission (Rs. in Crores) Actuals as per accounts for FY Cost of fuel Cost of Power Purchase 2, , Employee costs (Net) R&M Expenses Adm. & Gen. Expenses Depreciation Interest & Financial Charges Interest on Working Capital Other Debits & Extraordinary Items Return on Equity Less: Prior Period Credits/ (Charges) Total revenue requirement 3, , Less: Expenditure Disallowed due to - 13 higher T&D Losses Less: Non tariff income Net revenue requirement (14-15) 3, , Revenue from existing tariff(existing) 2, , Gap (16-17) 1, , Grant from Govt. 1, Total gap (18-19) Recoverable Regulatory assets Revenue surplus carried over 21 Additional revenue from proposedtariff 22 Regulatory asset 23 Energy sales (MU) 7,225 6,139 Page 42

199 FORMAT - 28 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Detail of ARR for FY S.N Item of expenditure Proposed By BSEB Approved by the Commission Revised Estimate Cost of fuel Cost of Power Purchase ,328 4,163 3 Employee costs (Net) R&M Expenses Adm. & Gen. Expenses Depreciation Interest & Financial Charges Interest on Working Capital Interest on Security Deposit Interest on Regulatory Asset Return on Equity Total revenue requirement ,706 6,254 Less: Expenditure Disallowed due to higher T&D Losses Less: Non tariff income Net revenue requirement (14-15) ,538 5, Revenue from existing tariff(existing) , Revenue from sale of power to Nepal Revenue from sale of additionla power Gap (16-17) , Resource Gap assistance , Total gap (18-19) Recoverable Regulatory assets Revenue surplus carried over 24 Additional revenue from proposedtariff 25 Regulatory asset 26 Energy sales (MU) ,661 (in Crores) Page 43

200 FORMAT - 28 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Detail of ARR for FY S.N Item of expenditure Proposed Approved by the Commission (in Crores) Actuals as per accounts for FY Cost of fuel Cost of Power Purchase Employee costs (Net) R&M Expenses Adm. & Gen. Expenses Depreciation Interest & Financial Charges Interest on Working Capital Return on Equity Total revenue requirement Add: Recovery of Revenue Gap of past filing Less: Expenditure Disallowed due to 12 higher T&D Losses Less: Non tariff income Net revenue requirement (14-15) Revenue from existing tariff(existing) Revenue from additional sale Revenue from sale of power to Nepal Revenue from sale of power in UI Gap Grant from Govt Total gap (18-19) Recoverable Regulatory assets Revenue surplus carried over 23 Additional revenue from proposedtariff 24 Regulatory asset 25 Energy sales (MU) 7313 Page 44

201 FORMAT - 29 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding Wholesale Price Index (All Commodities) S.N Period WPI As on 1 April As on 1 April Increase over previous year % 9.74% Page 45

202 FORMAT - 30 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding amount of Equity & Loan S.No Period Amount of equity(rs. Cr) Amount of loan(rs. Cr.) Ratio of equity & loan As on March 31, ,524 2, As on March 31, ,783 4, As on March 31, ,241 6, Page 46

203 FORMAT - 31 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding revenue from other business (Rs. in lakhs) FY FY FY S.N Particulars (Actual) (RE) (Projection) Total Revenue from other business 2 Income from other business to be considered for licenses business as per regulations NIL NIL NIL Page 47

204 FORMAT - 32 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding Bad and Doubtful debts (in Rs) S.N Particulars FY (Actual) FY (RE) FY (Projection) Amount of receivable bad and doubtful debts (audited) NIL 2 Provision made for debts in ARR Page 48

205 FORMAT - 33 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY INFORMATION REGARDING WORKING CAPITAL (Actual) FY (RE) (in Rs Crores) FY (Projected) S.N Particulars Fuel cost One month employees cost, R&M expenses and adm.& Gen. Expenses Receivables , , Maintenance spares Total , , Page 49

206 FORMAT - 34 ANNUAL REVENUE REQUIREMENT FOR THE YEAR FY Information regarding Foreign Exchange Rate Variation (FERV) (Rs. in lakhs) S.N Particulars FY (Actual) FY (RE) FY (Projection) Amount of liability provided 2 Amount recovered 3 Amount adjusted NIL NIL NIL Page 50

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