Madhya Pradesh Poorv Ksthera Vidyut Vitaran Company Limited

Transcription

1 MYT ARR Filing for to AGGREGATE REVENUE REQUIREMENT AND TARIFF PROPOSAL PETITION FOR FY Madhya Pradesh Poorv Ksthera Vidyut Vitaran Company Limited Block No. 7, Shakti Bhawan, Vidyut Nagar, Jabalpur

2 BEFORE THE MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION, BHOPAL Filing No. Case No. of 2009 Madhya Pradesh Poorv Kshethra Vidyut Vitran Company Limited, (MPPKVVCL) Block No. 7, Shakti Bhawan, Vidyut Nagar, Jabalpur (MP) Petitioner Vs (1) MP Power Trading Co. Limited Shakti Bhawan, Vidyut Nagar, Jabalpur (MP) Respondent No. 1 (2) MP Transmission Co. Limited Shakti Bhawan, Vidyut Nagar, Jabalpur (MP) Respondent No. 2 IN THE MATTER OF: Filing of the ARR application for the distribution and retail supply business for the year under tariff principles laid down in "The Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for supply and wheeling of Electricity and Methods and Principles of Fixation of Charges) Regulations, 2009 (G-35 of 2009)" by the Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur as the Distribution Licensee. The Petitioner above named, M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur, respectfully submits as under:- 1. Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd. (MPPKVVCL), (hereinafter referred to as the 'Petitioner', East Discom, 'the Company' or 'the Licensee'), is a Company incorporated under the Companies Act, 1956 and having its registered office at Block No.7, Shakti Bhawan, Vidyut Nagar, Jabalpur. The Petitioner is a deemed licensee under the Fifth Proviso to Section 14 of the Electricity Act, The area of supply of the Petitioner is Jabalpur, Rewa and Sagar Commissionery within the State of Madhya Pradesh ('MP'). 2. The Government of Madhya Pradesh ('GoMP' or 'State Government'), vide an Order No FRS dated 31st May, 2005, published in the gazette of Madhya Pradesh dated 31st May 2005, have restructured the M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 2

3 functions and undertakings of Generation, Transmission, Distribution and Retail Supply of electricity earlier carried out by the Madhya Pradesh State Electricity Board ('MPSEB' or the 'Board') and transferred the same to five Companies to function independently. The five Companies are as under: - 1) M.P. Power Generating Company Ltd., Jabalpur (MPPGCL) (GENCO); 2) M.P. Power Transmission Company Ltd., Jabalpur (MPPTCL) (TRANSCO); 3) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur (MPPKVVCL) (EAST DISCOM); 4) M.P. Madhya Kshetra Vidyut Vitaran Company Ltd. Bhopal (MPMKVVCL) (CENTRAL DISCOM); 5) M.P. Paschim Kshetra Vidyut Vitaran Company Ltd., Indore (MPPKVVCL) (WEST DISCOM); 3. With effect from 1st June 2005, the Operation and Management Agreement that existed between Madhya Pradesh State Electricity Board and the Five Companies came to end with the issue of the said Order dated The three Vidyut Vitaran Companies viz. East Discom, Central Discom and West Discom, started functioning independently as Distribution Licensees in their respective area of license and from the said date are no longer operating as an agent of or on behalf of the Board, subject to Cash Flow Mechanism (CFM) provided in the said Order. 4. On June 3, 2006 GoMP, in exercise of its powers under Section 23 (Sub-section (1), (2) and (3)) and Section 56 (Sub-section (2)) of Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 read with Section 131 (Sub-sections (1), (2), (5), (6) and (7) of Electricity Act, 2003, effected the transfer of and vesting of the functions, properties, interests rights and obligations of MPSEB relating to the Bulk Purchase and Bulk Supply of Electricity in the State Government and simultaneously re-transferred and re-vested the same to MP Power Trading Company ('Tradeco' or 'MP Tradeco'). Since then, MP Tradeco is discharging the responsibilities of procurement of power in bulk and supplying to the three Discoms, including the Petitioner herein. The transfer was effected through "M.P. Electricity Reforms Transfer Scheme Rules 2006 (Transfer Scheme Rules) vide Notification No.3474 /FRS/17/XIII/2002 dtd 3 rd June 2006 (Transfer Scheme Rules). 5. In the backdrop of the above facts and circumstances, the present application is being made by the Petitioner (East Discom) under Section 61 and Section 62 (1) (d) of the Electricity Act 2003 for determination of the ARR for the distribution and Retail Supply Business for the period FY following the regulations laid down by the Hon ble MPERC. 6. While filing the present ARR under the prevailing Regulation, MPPKVVCL has endeavoured to comply with the various applicable legal and regulatory directions and stipulations including the directions of the Hon'ble Commission in the Business Rules of the Commission, the Guidelines, previous ARR and Tariff Orders and the Regulation. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 3

4 7. Based on the information available, the Petitioner has made sincere efforts to comply with the Regulations of the Hon'ble Commission and discharge its obligations to the best of its abilities and resources at its command. However, should any further material information become available during the process of determination, the Applicant be permitted to reserve the right to file such additional information and consequently amend/ revise the application. 8. The salient features of the ARR are as under:- i) Aggregate revenue requirement for the year is Rs.5, Crore ii) For the purpose of computation of energy requirement 32.5% losses has been considered for FY iii) Energy sale for FY is projected as MU for which energy requirement will be MU. iv) Revenue Gap at existing tariff will be Rs Crore. v) For recovery of the aforesaid gap, the revision in existing tariff is also proposed, so that, additional amount of Rs Crores recovered. The balance amount of Rs Crore is proposed to be treated as regulatory asset which shall be amortized during five years period from FY 12 onwards. vi) The formula for Fuel Surcharge Adjustment and expensive power charges for recovery of variation in Power Purchase cost. 9. The Tariff Proposal along with other ways and means for the treatment of the above indicated revenue Gap is also prepared and submitted in the relevant section of these petition. 10. Shri P.K. Singh, Superintending Engineer (Commercial) of MPPKVVCL has been authorised to execute and file all the documents on behalf of MPPKVVCL in this regard. Accordingly, the current filing signed and verified by, and backed by the affidavit of Shri P.K. Singh, Superintending Engineer (Commercial ). M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 4

5 PRAYER In view of the aforesaid facts and circumstances, the Applicant requests that this Hon'ble Commission may be pleased to: (a) Take the accompanying ARR/Tariff petition of MPPKVVCL on record and treat it as complete; (b) Consider and approve MPPKVVCL's ARR amounting to Rs. 5, Crore for the year including all requested regulatory treatments in the filing. (c) Consider and approve MPPKVVCL's Tariff proposal along with other ways and means for the treatment of the indicated revenue Gap. (d) Condone any inadvertent omissions/ errors/ shortcomings and permit the petitioner to add/ change/ modify/ alter portions of this filing and make further submissions as may be required at a later stage; and (e) Pass such order as the Hon'ble Commission may deem fit and proper in the facts and circumstances of the case. Date:- 05 /01/2010 Superintending Engineer (Commercial) MP Poorv Kshetra Vidyut Vitaran Co.Ltd., Jabalpur. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 5

6 Table of contents A1: SALES PROJECTION...8 Category-wise sales projection...11 LV -1: Domestic...11 LV -2: Non- Domestic...16 LV -3: Water Works and Street Light...19 LV -4: Industrial...21 LV -5.1: Agricultural...25 LV 5.2: Other than Agricultural use...28 HV -1: Railway Traction...31 HV -2: Coal Mines...31 HV -3: Industrial & Non Industrial...32 HV -4: Seasonal...33 HV -5 Water Works, Lift Irrigation & Other than Agricultural...33 HV -6: Bulk Residential users...35 HV -7: Bulk Supply to Exemptees...35 Summary...36 A2: POWER PURCHASE COSTS...38 A3: ASSESSMENT OF AVAILABILITY...39 Central Sector Stations Allocated to MP...39 Review of past Ex-bus availability...40 Projection of Availability for future years...42 Projections for Sipat-II and Kahalgaon-II...42 Bilateral and Joint Venture Stations...43 Review of past Ex-bus availability...43 Projection of availability for future years...44 MP Genco stations...44 Capacity addition plan...45 Assumption for projecting availability from the future capacities...49 Overall availability...50 PGCIL Losses...53 East Discom availability at state boundary...53 A4: ESTIMATION OF COSTS...55 For existing stations...55 For Future capacities...56 Details of costs for Existing power plants...56 Details of Costs for future capacities...57 A5: DEMAND PROJECTIONS AND ENERGY BALANCE...59 Demand Projection...59 Energy Balance...62 Calculation of Month-wise loss levels...63 Month wise sales...64 Short-Term power purchase requirement...65 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 6

7 A6: POWER PURCHASE COSTS FOR EAST DISCOM...66 Power Purchase and Procurement - Requirement of MPERC...66 Prevailing Arrangement for Power Procurement in state of Madhya Pradesh...67 Submission of Distribution Licensee to Hon'ble Commission...68 PGCIL Costs...68 Intra-state Transmission Charges...69 Total Power Purchase costs...69 A7: O&M EXPENSES...70 Employee Expenses...70 Repair and Maintenance Cost...73 Administrative and General Expenses...74 A8: CAPITAL INVESTMENT PLAN...74 Investments...76 Financing Plan...77 Capitalization...77 A9: DEPRECIATION...79 A10: INTEREST AND FINANCE CHARGES...80 Interest on Project Loans...80 A11: INTEREST ON WORKING CAPITAL...82 A12: OTHER COSTS...83 Other Income...83 Return on Equity...84 Bad and Doubtful Debts...84 Amortization of FY 08 and FY 09 gap...84 A13: ANNUAL REVENUE REQUIREMENT...85 Summary for East Discom...85 Segregation of ARR...86 A14: OTHER ITEMS...88 Fuel Surcharge Adjustment...88 Expensive Power Charges...90 Depreciation...92 A15: TARIFF PROPOSAL...94 A16: COMPLINACE ON TARIFF ORDER FY M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 7

8 A1: SALES PROJECTION 1.1 The Licensee hereby would like to submit to the Hon ble Commission that it has revised its Sales Forecast for the period FY since the actual position of the East Discom during the year FY & FY has significantly deviated from the sales forecast projection made by the Licensee during the previous filings and allowed by Hon ble Commission. Table 1: Comparision of Actual Sale wrt Allowed in Tariff Order Categ. Sales (Mil. Units) As per Tariff Order Actual As per Tariff Order Actual Deviation FY FY FY FY LV-1 Domestic 1,778 1,396 2,290 1, % % LV-2 Non-Domestic % % LV-3 WW & Street Light % 22.34% LV-4 LT Industrial % % LV-5 Agriculture Irrigation Pumps 1,375 1,452 1,425 1, % % LT Sales (Mil. Units) 3,810 3,446 4,472 3, % % HV-1 Railway Traction % 0.03% HV-2 Coal Mines % -1.72% HV-3 Industrial and Non Industrial 1,100 1,067 1,127 1, % -5.99% HV-4 Seasonal % % HV-5 Irrigation and Public Water Works % -5.51% HV-6 Bulk Residential Users % % HV-7 Bulk Supply to Exemptees % -1.21% HT Sales (Mil. Units) 2,788 2,668 2,898 2, % -4.97% Total Sales (Mil. Units) 6,598 6,114 7,370 6, % % 1.2 It could be seen from the above table that actual sales has been 18.21% less than the projected sales as filed in the ARR filing for FY Due to this reason the licensee has proposed to update its Sales Projection based on the actual sales available and actual supply hrs for the period FY to FY The Actual Sales during the year up to Sept 09 is now available and therefore licensee feels to revise its sale estimated as approved in tariff order FY The revised estimate is indicated in table below:- M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 8

9 Table 2: Revised Estimate of Sale w.r.t Allowed in Tariff Order Units Sold (MU) Tariff Order RE Diff. % Change LV 1 Domestic % LV 2 Non-Domestic % LV 3.1 WW & Street Light % LV 4 LT Industrial % LV 5.1 Agriculture Irrigation Pumps % Total (LT) % HV 1 Railway Traction % HV 2 Coal Mines % HV 3 Industrial and Non Industrial % HV 4 Seasonal % HV 5.1 Public Water Works % HV 5.2 Irrigation % HV 6 Bulk Residential Users % HV 7 Bulk Supply to Exemptees % Total (HT) % TOTAL LT+HT % 1.3 The sales projections for the MYT period to have been arrived at after analysis of the Number of Consumers, Connected Load and Consumption data of the past 4 years. 1.4 The approach followed was to analyze the CAGRs of each category in each circle, looking at urban and rural data separately in the case of the LT categories and looking at the data of the sub-categories & slabs in each sub-category. After analysis of the data in the above fashion, appropriate/reasonable growth rates were chosen for future sales forecasts from among the past CAGRs of the Category/Sub-category. The same approach was applied while forecasting connected load and number of consumers in each category/sub-category. 1.5 The forecast also considers the impact of schemes/plans of licensee such as the RGGVY scheme (Rajiv Gandhi Grameen Vidyutikiran Yojana), the complete meterization of urban domestic consumers in the near future and targeted addition of potential consumers in the domestic and Non-domestic categories. The projection of each tariff category and the relevant assumptions has been discussed in the following paras. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 9

10 1.6 The overall sales forecast for the East Discom (in MUs) is as follows: Table 3: Sales Projection for MYT period Units Sold (MU) RE Proj Proj Proj LV 1 Domestic LV 2 Non-Domestic LV 3.1 WW & Street Light LV 4 LT Industrial LV 5.1 Agriculture Irrigation Pumps Total (LT) HV 1 Railway Traction HV 2 Coal Mines HV 3 Industrial and Non Industrial HV 4 Seasonal HV 5.1 Public Water Works HV 5.2 Irrigation HV 6 Bulk Residential Users HV 7 Bulk Supply to Exemptees Total (HT) TOTAL LT+HT M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 10

11 Category-wise sales projection LV -1: Domestic 1.7 The historical data in this category is as follows: Table 4: LV-1 Domestic Consumer Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % 0.71% 0.83% Urban SC/ST BPL % -5.48% 62.02% Urban Temporary % 39.23% -1.75% Urban Total % 0.60% 2.30% Rural General % 17.54% 1.83% Rural SC/ST BPL % 15.86% 7.27% Rural Temporary % 47.01% 15.08% Rural Total % 16.87% 3.96% Total General % 8.69% 1.36% Total SC/ST BPL % 14.44% 9.09% Total Temporary % 40.69% 1.23% Total Total % 10.24% 3.37% Table 5: LV-1 Domestic Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % 4.13% 4.25% Urban SC/ST BPL % 48.64% % Urban Temporary % 27.73% 88.71% Urban Total % 4.67% 5.71% Rural General % 7.69% 0.02% Rural SC/ST BPL % 28.97% 18.25% Rural Temporary % % % Rural Total % 10.51% 2.85% Total General % 5.12% 3.00% Total SC/ST BPL % 31.04% 29.05% Total Temporary % 42.93% 98.22% Total Total % 6.40% 4.79% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 11

12 Table 6: LV-1 Domestic Consumption Historical Data Area Sub Unit (MU) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % 3.53% 1.24% Urban SC/ST BPL % % -7.81% Urban Temporary % 17.01% 7.57% Urban Total % 3.00% 1.09% Rural General % 13.69% -2.34% Rural SC/ST BPL % 7.57% % Rural Temporary % 18.77% -3.04% Rural Total % 11.49% -6.50% Total General % 6.61% 0.02% Total SC/ST BPL % 4.90% % Total Temporary % 17.30% 5.66% Total Total % 6.38% -2.30% 1.8 The growth rates used for future projections are as follows: Table 7: LV-1 Domestic- Assumptions Area Sub- Consumer Load Unit Comments Type category Growth Growth Growth Urban General 1.00% 4.13% 3.53% Sub-category 2 year CAGR used Urban SC/ST BPL 0.00% 0.00% - All further connections given to SC/ST BPL consumers will be metered connections under the general subcategory. All unmetered SC/ST BPL consumers will also be metered by FY11. Urban Temporary 10.24% 10.00% 10.00% Category-wise 2 year CAGR used for Consumer growth and growth rates equal to consumer growth used for load & consumption growth due to high growth observed in category. Rural General 17.54% 7.69% 13.69% 2 year CAGR of sub-category used. Rural SC/ST BPL 0.00% 0.00% - Further growth of Rural SC/ST BPL consumers is considered to be under the RGGVY scheme.hence 0% growth rate is assumed and consumption is considered to be equal to 30 units per consumer. Rural Temporary 10.24% 10.00% 10.00% Category-wise 2 year CAGR used for Consumer growth and growth rates equal to consumer growth used for load & consumption growth due to high growth observed in category. 1.9 In addition to the rate of growth assumed as indicated above, the impact of the RGGVY scheme implementation is also taken into account in the future Consumer/Load/Consumption projections. The following implementation roadmap for the RGGVY scheme as planned by the discom has been considered for future projections. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 12

13 Table 8: LV-1 Domestic RGGVY Assumption Roadmap for RGGVY implementation (Households) Total Targeted (left) Total BPL Non-BPL The connected load per consumer for BPL consumers added under the RGGVY scheme has been taken as 80 Watt per consumer and the connected load per consumer for non-bpl consumers as been taken to be equivalent to the average connected load of rural consumers (General sub-category) which is 0.24 KW / consumer. The consumption of the BPL consumers is calculated using the current Load factor observed in consumers in the 0-30 units Rural General sub-category (0.08) and the load estimated as mentioned before. The consumption of the non- BPL consumers is calculated using the current load factor observed in rural general domestic consumers (0.22) and the load estimated as mentioned before In addition to the rate of growth mentioned before, we also include the effect of the discom s efforts to include all potential consumers in the urban areas into its billing net over the next 4 years. The potential consumers in the urban areas serviced by the Discom are estimated using data from the 2001 census1. Assuming a 1.76 % p.a 2 increase in households in 2009 as compared to 2001, we get the following figures for the potential consumers present in the urban areas served by the discom. Table 9: Census data District No. of urban households as per 2001 census Projected households in 2009 Chhindwara 88, Chhatarpur 54, Damoh 37, Jabalpur City 234, Katni 43, Mandla 18, Narsinghpur 29, Rewa 56, Sagar 100, Satna 71, Seoni 24, Shahdol 77, Sidhi 50, Tikamgarh 34, Total census 2 based on Population Projection 1996 constituted by Planning Commision. Rajya Sabha Unstarred Question No. 555, dated M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 13

14 1.12 Assuming a 1.76 % per annum 3 in the no. of households, It is seen that without additional efforts, a gap of 316,456 consumers exists between the projected consumer base and the potential consumer base in FY13. In order to cover the entire potential urban consumer base in the next 4 years, it is assumed that an addition of 79,114 households per year will be made to the consumer base. The load/consumer and units consumed/consumer were taken in line with the same as present in the base projections of the urban consumers till FY The sales forecast also considers the meterization of all urban unmetered consumers in the general category over the next year After incorporating the growth due to the RGGVY scheme and the drive to include all urban potential consumers in the billing net over the next 4 years into the base projections, the following projections for LV-1 have been arrived at: Table 10: Domestic Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban Potential Urban Total-Gen Urban SC/ST BPL Urban Temporary Urban Total Rural General Rural RGGY Rural Total-Gen Rural SC/ST BPL Rural Temporary Rural Total Total General Total SC/ST BPL Total Temporary Total Total based on Population Projection 1996 constituted by Planning Commision. Rajya Sabha Unstarred Question No. 555, dated M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 14

15 Table 11: LV-1 Domestic Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban Potential Urban Total-Gen Urban SC/ST BPL Urban Temporary Urban Total Rural General Rural RGGY Rural Total-Gen Rural SC/ST BPL Rural Temporary Rural Total Total General Total SC/ST BPL Total Temporary Total Total Table 12: LV-1 Domestic Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban Potential Urban Total-Gen Urban SC/ST BPL Urban Temporary Urban Total Rural General Rural RGGY Rural Total-Gen Rural SC/ST BPL Rural Temporary Rural Total Total General Total SC/ST BPL Total Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 15

16 LV -2: Non- Domestic 1.15 The historical data of the category is as follows: Table 13: LV-2 Non-Domestic Consumer Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % -0.03% 2.01% Urban X-ray Plant % 1.53% -2.28% Urban Temporary % 68.95% 44.68% Urban Total % 0.25% 2.26% Rural General % 8.73% 1.71% Rural X-ray Plant % 11.14% % Rural Temporary % % 44.13% Rural Total % 9.73% 2.44% Total General % 1.64% 1.94% Total X-ray Plant % 2.09% -3.02% Total Temporary % 84.41% 44.44% Total Total % 2.07% 2.30% Table 14: LV-2 Non-Domestic Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % 5.03% 6.59% Urban X-ray Plant % -2.85% -7.69% Urban Temporary % 94.33% % Urban Total % 6.07% 8.21% Rural General % 21.57% 18.40% Rural X-ray Plant % 4.75% -1.25% Rural Temporary % % 61.21% Rural Total % 26.02% 21.55% Total General % 7.40% 8.46% Total X-ray Plant % -2.62% -7.49% Total Temporary % % 98.46% Total Total % 8.99% 10.41% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 16

17 Table 15: LV-2 Non-Domestic Unit Historical Data Area Sub Unit (MU) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban General % 8.64% 5.39% Urban X-ray Plant % % 17.27% Urban Temporary % 57.64% 29.84% Urban Total % 9.00% 5.96% Rural General % 15.56% 13.25% Rural X-ray Plant % -4.83% % Rural Temporary % % 94.86% Rural Total % 19.68% 17.63% Total General % 9.53% 6.43% Total X-ray Plant % % 13.64% Total Temporary % 76.46% 47.84% Total Total % 10.40% 7.54% 1.16 The growth rates used for future projections are as follows: Table 16: LV-2 Non-Domestic- Assumptions Area Sub- Consumer Load Unit Comments Type category Growth Growth Growth Urban General 2.01% 5.03% 8.64% 2 year Sub-category CAGR used for load growth & consumption growth, 1 year growth used for growth in no. of consumers Urban X-ray 2.07% 8.99% 10.40% 2 year category-wise CAGR used Urban Temporary 2.07% 8.99% 10.40% 2 year category-wise CAGR used Rural General 1.71% 18.40% 13.25% 1 year sub-category CAGR used Rural X-ray 2.07% 8.99% 10.40% 2 year category-wise CAGR used Rural Temporary 2.07% 8.99% 10.40% 2 year category-wise CAGR used M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 17

18 1.17 Based on the above growth rates, the following are the projections for the category till FY13 : Table 17: LV-2 Non-Domestic Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban X-ray Plant Urban Temporary Urban Total Rural General Rural X-ray Plant Rural Temporary Rural Total Total General Total X-ray Plant Total Temporary Total Total Table 18: LV-2 Non-Domestic Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban X-ray Plant Urban Temporary Urban Total Rural General Rural X-ray Plant Rural Temporary Rural Total Total General Total X-ray Plant Total Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 18

19 Table 19: LV-2 Non-Domestic Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban General Urban X-ray Plant Urban Temporary Urban Total Rural General Rural X-ray Plant Rural Temporary Rural Total Total General Total X-ray Plant Total Temporary Total Total LV -3: Water Works and Street Light 1.18 The historical data for the category is as follows: Table 20: LV-3 PWW & Street Light Consumer Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban PWW % 1.22% 7.12% Urban Street Light % -3.39% 1.89% Urban Total % -0.56% 5.13% Rural PWW % 10.04% 5.36% Rural Street Light % -0.98% -4.96% Rural Total % 4.25% 0.08% Total PWW % 5.78% 6.15% Total Street Light % -1.82% -2.75% Total Total % 2.23% 2.05% Table 21: LV-3 PWW & Street Light Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban PWW % 0.82% 6.65% Urban Street Light % 5.26% 4.35% Urban Total % 2.89% 5.53% Rural PWW % 8.04% 3.88% Rural Street Light % 1.40% -6.44% Rural Total % 6.66% 1.73% Total PWW % 4.12% 5.29% Total Street Light % 4.48% 2.09% Total Total % 4.26% 4.07% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 19

20 Table 22: PWW & Street Light Unit Historical Data Area Sub Unit (MU) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban PWW % 24.46% 17.01% Urban Street Light % 23.27% 20.39% Urban Total % 23.86% 18.67% Rural PWW % 9.19% 3.96% Rural Street Light % 18.23% 17.69% Rural Total % 10.63% 6.14% Total PWW % 19.75% 13.20% Total Street Light % 22.87% 20.19% Total Total % 21.09% 16.16% 1.19 The following growth rates have been used for future projections: Table 23: LV-3 PWW & Street Light Assumption Area Sub- Consumer Load Unit Comments Type category Growth Growth Growth Urban PWW 7.12% 6.65% 10.00% 3 year CAGR used for consumer and load growth, 10% growth is assumed for consumption considering the high growth observed in the past 3 years Urban Street Light 1.00% 6.52% 10.00% 3 year CAGR used for consumer and load growth, 10% growth is assumed for consumption considering the high growth observed in the past 3 years Rural PWW 4.63% 3.07% 7.07% 2 year sub-category growth rate used Rural Street Light 2.23% 4.26% 7.17% 2 year category-wide CAGR used for consumer and load growth, 3 year sub-category CAGR used for consumption growth 1.20 The future projections based on the above growth rates are as follows: Table 24: LV-3 PWW & Street Light Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban PWW Urban Street Light Urban Total Rural PWW Rural Street Light Rural Total Total PWW Total Street Light Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 20

21 Table 25: LV-3 PWW & Street Light Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban PWW Urban Street Light Urban Total Rural PWW Rural Street Light Rural Total Total PWW Total Street Light Total Total Table 26: LV-3 PWW & Street Light Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban PWW Urban Street Light Urban Total Rural PWW Rural Street Light Rural Total Total PWW Total Street Light Total Total LV -4: Industrial 1.21 The historical data of the category is as follows: Table 27: LV-4 Industrial Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Non Seasonal % 5.29% 1.23% Urban Seasonal % % -7.36% Urban Temporary % 7.48% 9.84% Urban Total % 2.29% 0.29% Rural Non Seasonal % 92.22% 7.31% Rural Seasonal % -6.10% % Rural Temporary % % % Rural Total % 88.04% 4.85% Total Non Seasonal % 38.50% 4.81% Total Seasonal % % % Total Temporary % % % Total Total % 33.60% 2.92% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 21

22 Table 28: LV-4 Industrial Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Non Seasonal % 11.51% 5.66% Urban Seasonal % % -6.94% Urban Temporary % 55.80% 62.58% Urban Total % 6.05% 3.62% Rural Non Seasonal % 57.37% 4.95% Rural Seasonal % % % Rural Temporary % % % Rural Total % 50.85% 2.62% Total Non Seasonal % 26.65% 5.34% Total Seasonal % % % Total Temporary % % % Total Total % 19.64% 3.19% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 22

23 1.22 The growth rates used for future projections are as follows: Table 29: LV-4 Industrial Assumption Area Sub- Consumer Load Unit Comments Type category Growth Growth Growth Urban Non Seasonal 5.29% 11.51% 10.38% 2 year sub-category CAGR used Urban Seasonal 1.00% 1.00% 1.00% Nominal growth rates used as negative growth was observed Urban Temporary 2.92% 3.19% 3.11% Due to extremely high consumption growth rates on low values, 2 year Category-wide CAGR used Rural Non Seasonal 7.31% 4.95% 4.74% 1 year growth used Rural Seasonal 1.00% 1.00% 1.00% Nominal growth rates used as negative growth was observed Rural Temporary 2.92% 3.19% 3.11% Due to extremely high consumption growth rates on low values, 2 year Category-wide CAGR used 1.23 The future projections based on the above growth rates are as follows: Table 30: LV-4 Industrial Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Non Seasonal Urban Seasonal Urban Temporary Urban Total Rural Non Seasonal Rural Seasonal Rural Temporary Rural Total Total Non Seasonal Total Seasonal Total Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 23

24 Table 31: LV-4 Industrial Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Non Seasonal Urban Seasonal Urban Temporary Urban Total Rural Non Seasonal Rural Seasonal Rural Temporary Rural Total Total Non Seasonal Total Seasonal Total Temporary Total Total Table 32: LV-4 Industrial Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Non Seasonal Urban Seasonal Urban Temporary Urban Total Rural Non Seasonal Rural Seasonal Rural Temporary Rural Total Total Non Seasonal Total Seasonal Total Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 24

25 LV -5.1: Agricultural 1.24 The historical data in the category is as follows: Table 33: LV-5.1 Agricultural Consumer Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Metered General % % % Urban Metered Temporary % -8.31% 11.16% Urban Unmetered General % % % Urban Unmetered Temporary % 49.84% 83.57% Urban Total % % % Rural Metered General % 8.25% 3.81% Rural Metered Temporary % % 12.05% Rural Unmetered General % -0.77% -0.74% Rural Unmetered Temporary % 87.73% % Rural Total % 23.11% 28.20% Total Metered General % 2.97% 1.47% Total Metered Temporary % % 11.73% Total Unmetered General % -7.66% -6.54% Total Unmetered Temporary % 85.86% % Total Total % 15.65% 22.68% Table 34: LV-5.1 Agricultural Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Metered General % % % Urban Metered Temporary % 0.76% 7.76% Urban Unmetered General % % % Urban Unmetered Temporary % 52.66% % Urban Total % % % Rural Metered General % 7.24% 2.43% Rural Metered Temporary % % % Rural Unmetered General % -1.95% -1.84% Rural Unmetered Temporary % 77.30% % Rural Total % 16.42% 25.81% Total Metered General % 1.76% -0.07% Total Metered Temporary % % % Total Unmetered General % -8.99% -7.74% Total Unmetered Temporary % 76.12% % Total Total % 9.33% 19.82% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 25

26 Table 35: LV-5.1 Agricultural Unit Historical Data Area Sub Unit (MU) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Metered General % % -1.90% Urban Metered Temporary % % % Urban Unmetered General % % % Urban Unmetered Temporary % 28.15% -3.61% Urban Total % % % Rural Metered General % 21.48% 21.08% Rural Metered Temporary % % % Rural Unmetered General % % % Rural Unmetered Temporary % 38.97% 7.71% Rural Total % -0.59% % Total Metered General % 14.94% 17.32% Total Metered Temporary % % % Total Unmetered General % % % Total Unmetered Temporary % 38.49% 7.22% Total Total % -5.53% % 1.25 The growth rates used for future projections are as follows: Table 36: LV-5 Agricultural Assumption Area Sub- Consumer Load Comments Type category Growth Growth Urban Metered General 0.00% 0.00% Negative growth rates noticed. Urban Metered Temporary 0.00% 0.00% Negative Growth rates noticed. Urban Unmetered General 1.00% 1.00% Nominal growth rates taken as negative past trend noticed. Urban Unmetered Temporary 12.43% 8.44% 3 year Sub-category CAGR used Rural Metered General 3.81% 2.43% 1 year sub-category growth used Rural Metered Temporary 0.00% 0.00% Negative growth rates noticed. Rural Unmetered General 9.82% 5.50% Category-wise 3 year CAGR used. Rural Unmetered Temporary 9.82% 9.33% Category-wise 3 year CAGR used for consumer growth and category-wise 2 year CAGR used for Load growth. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 26

27 1.26 The annual Consumption for the above sub-categories has been projected based on the following consumption norms: Table 37: LV-5 Agricultural Assumption SN Category Basis of Projection (i) Urban - Metered General & 150 kwh/hp/month for 9 months & 75 kwh/hp/month for 3 months Unmetered General (ii) Urban Metered Temporary & 175 kwh/hp/month Unmetered Temporary (iii) Rural Metered General & 125 kwh/hp/month for 9 months and 50 kwh/hp/month for 3 months Unmetered General (iv) Rural Metered Temporary & Unmetered Temporary 160 kwh/hp/month 1.27 On the basis of the above growth rates and consumption norms, the projections for LV 5.1 are as follows: Table 38: LV-5.1 Agricultural Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Metered General Urban Metered Temporary Urban Unmetered General Urban Unmetered Temporary Urban Total Rural Metered General Rural Metered Temporary Rural Unmetered General Rural Unmetered Temporary Rural Total Total Metered General Total Metered Temporary Total Unmetered General Total Unmetered Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 27

28 Table 39: LV-5.1 Agricultural Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Metered General Urban Metered Temporary Urban Unmetered General Urban Unmetered Temporary Urban Total Rural Metered General Rural Metered Temporary Rural Unmetered General Rural Unmetered Temporary Rural Total Total Metered General Total Metered Temporary Total Unmetered General Total Unmetered Temporary Total Total Table 40: LV-5.1 Agricultural Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Metered General Urban Metered Temporary Urban Unmetered General Urban Unmetered Temporary Urban Total Rural Metered General Rural Metered Temporary Rural Unmetered General Rural Unmetered Temporary Rural Total Total Metered General Total Metered Temporary Total Unmetered General Total Unmetered Temporary Total Total LV 5.2: Other than Agricultural use M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 28

29 1.28 The historical data for the category is as follows: Table 41: LV-5.2 Other Than Agricultural Use Consumer Historical Data Area Sub CONSUMERS (No.) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Permanent % % 0.00% Urban Temporary % % 0.00% Urban Total % % 0.00% Rural Permanent % % % Rural Temporary % % % Rural Total % % % Total Permanent % % % Total Temporary % % % Total Total % % % Table 42: LV-5.2 Other Than Agricultural Use Load Historical Data Area Sub LOAD (kw) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Permanent % % 0.00% Urban Temporary % % 0.00% Urban Total % % 0.00% Rural Permanent % % % Rural Temporary % % % Rural Total % % % Total Permanent % % % Total Temporary % % % Total Total % % % Table 43: LV-5.2 Other Than Agricultural Use Unit Historical Data Area Sub Unit (MU) 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Urban Permanent % % % Urban Temporary % % % Urban Total % % % Rural Permanent % % % Rural Temporary % % % Rural Total % % % Total Permanent % % % Total Temporary % % % Total Total % % % 1.29 The following growth rates have been used for future projections: M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 29

30 Table 44: LV-5.2 Other Than Agricultural Use Assumption Area Sub- Consumer Load Unit Comments Type category Growth Growth Growth Urban Permanent 10.00% 8.00% 5.00% Urban Temporary 10.00% 8.00% 5.00% Rural Permanent 10.00% 8.00% 5.00% Rural Temporary 10.00% 8.00% 5.00% Discom-wise 2 year CAGR used because of fluctuations observed The future projections based on the above growth rates are as follows: Table 45: LV-5.2 Other Than Agricultural Use Consumer Projection Area Sub CONSUMERS (No.) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Permanent Urban Temporary Urban Total Rural Permanent Rural Temporary Rural Total Total Permanent Total Temporary Total Total Table 46: LV-5.2 Other Than Agricultural Use Load Projection Area Sub LOAD (kw) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Permanent Urban Temporary Urban Total Rural Permanent Rural Temporary Rural Total Total Permanent Total Temporary Total Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 30

31 Table 47: LV-5.2 Other Than Agricultural Use Unit Projection Area Sub Unit (MU) Category FY09-10 FY10-11 FY11-12 FY12-13 Urban Permanent Urban Temporary Urban Total Rural Permanent Rural Temporary Rural Total Total Permanent Total Temporary Total Total HV -1: Railway Traction Table 48: HV-1 Railway Traction Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % 0.00% 0.00% Total Load(kW) % 20.81% 8.00% Total Unit (MU) % 5.02% 10.78% 1.31 The 3 year category CAGR has been used for future projections. No new traction points are expected during the projection period. The future projections for the category are: Table 49: HV-1 Railway Traction Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -2: Coal Mines 1.32 The historical data in the category is as follows : Table 50: HV-2 Coal Mines Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % -2.35% -2.38% Total Load(kW) % % % Total Unit (MU) % -0.20% 1.05% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 31

32 1.33 It is assumed that no new coal mines connection will be added during MYT period. Nominal values have been used for future projections of connected load and consumption because of the negative and low growth rates observed. The future projections for the category based on the growth rates used are: Table 51: HV-2 Coal Mines Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -3: Industrial & Non Industrial 1.34 The historical data in the industrial category is as follows: Table 52: HV-3.1 Industrial Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % 14.31% 9.12% Total Load(kW) % -2.22% -4.96% Total Unit (MU) % 0.52% -1.91% 1.35 The 1-year growth rate has been used for projecting consumer growth. Looking at the rural industrial 2 year CAGR (13%) and the 1 year urban industrial 33kv CAGR (4.27%), licensee assumes a future growth rate of 4% for load growth and consumption growth. The future projections for the industrial category based on the growth rates used are: Table 53: HV-3.1 Industrial Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) The historical data in the non-industrial category is as follows: Table 54: HV-3.2 Non-Industrial Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % 17.94% 21.23% Total Load(kW) % 6.18% 11.61% Total Unit (MU) % % 9.78% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 32

33 1.37 The 3 year category-wise CAGR is used for consumer growth and the 1 year sub-category CAGR is used for load growth and consumption growth. The future projections for the non-industrial category based on the growth rates used are : Table 55: HV-3.2 Non-Industrial Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -4: Seasonal 1.38 The historical data in the category is as follows : Table 56: HV-4 Seasonal Historical Data Area Sub Year 2 Year 1 Year Category FY06-07 FY07-08 FY08-09 CAGR Growth Total Consumer % 45.45% Total Load(kW) % % Total Unit (MU) % % 1.39 The discom-wise 2 year growth rate is used for future projections as the past growth trends of the category do not show a consistent growth pattern. The future projections for the category based on the growth rates used are: Table 57: HV-4 Seasonal Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -5 Water Works, Lift Irrigation & Other than Agricultural 1.40 The historical data in the HT Waterworks sub-category is as follows: Table 58: HV-5.1 Water Works Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % % 9.09% Total Load(kW) % % % Total Unit (MU) % -3.99% -5.32% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 33

34 1.41 The future projections for the HT Public Waterworks sub-category based on the growth rates of 2% used are : Table 59: HV-5.1 Water Works Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) The historical data in the HT Lift Irrigation sub-category is as follows: Table 60: HV-5.1 Lift Irrigation Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % 5.61% 0.00% Total Load(kW) % -0.14% -9.61% Total Unit (MU) % 33.14% 25.84% 1.43 The future projections for the HT Lift Irrigation sub-category based on the growth rates of 5.07% for consumer and load projection and 10% for consumption are : Table 61: HV-5.1 Lift irrigation Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) The historical data in the HT Other than Agri used sub-category is as follows: Table 62: HV-5.2 Other than Agricultural Historical Data Area Sub Year 2 Year 1 Year Category FY06-07 FY07-08 FY08-09 CAGR Growth Total Consumer % 11.11% Total Load(kW) % % Total Unit (MU) % 5.33% 1.45 The 1 year consumer growth rate has been used for consumer projections and the 3 year CAGRs for the Discom has been used to project connected load and Consumption. The future projections for the HT Other Agri sub-category based on the growth rates used are : Table 63: HV-5.2 Other Than Agricultural Projection Area Sub Year M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 34

35 Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -6: Bulk Residential users 1.46 The historical data in this category is as follows: Table 64: HV-6 Bulk Residential Users Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % 2.74% -8.06% Total Load(kW) % 10.17% 6.56% Total Unit (MU) % 33.17% 4.59% 1.47 The 2-year CAGR has been used to project customer growth and the 1 year growth rate has been used to project connected load and consumption. The future projections for the category based on the growth rates used are : Table 65: HV-6 Bulk Residential Users Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) HV -7: Bulk Supply to Exemptees 1.48 The historical data in this category is as follows: Table 66: HV-7 Bulk Supply to Exemptee Historical Data Area Sub Year 3 Year 2 Year 1 Year Category FY05-06 FY06-07 FY07-08 FY08-09 CAGR CAGR Growth Total Consumer % % 40.54% Total Load(kW) % % 5.69% Total Unit (MU) % 8.02% 9.94% 1.49 The 1 year growth rate has been used to project connected load and consumption. Consumer growth is also assumed to be growing at the same rate as the load growth. The future projections for the category based on the growth rates used are : M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 35

36 Table 67: HV-7 Bulk Supply to Exemptee Projection Area Sub Year Category FY09-10 FY10-11 FY11-12 FY12-13 Total Consumer Total Load(kW) Total Unit (MU) Summary 1.50 The summary of forecasted consumer, load and sales for each category is given below:- Table 68: Summary of Consumers Consumer (No.) Actual Actual Actual Actual RE Projection Projection Projection LV 1 Domestic LV 2 Non-Domestic LV 3 WW & Street Light LV 4 LT Industrial LV 5.1 Agriculture Irrigation Pumps LV 5.2 Other than Agricultural Total (LT) HV 1 Railway Traction HV 2 Coal Mines HV 3.1 Industrial HV 3.2 Non Industrial HV 4 Seasonal HV 5 WW,LIS,Other than Agr HV 6 Bulk Residential Users HV 7 Bulk Supply to Exemptees Total (HT) TOTAL LT+HT M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 36

37 Table 69: Summary of Connected Load Load (kw) Actual Actual Actual Actual RE Projection Projection Projection LV 1 Domestic LV 2 Non-Domestic LV 3 WW & Street Light LV 4 LT Industrial LV 5.1 Agriculture Irrigation Pumps LV 5.2 Other than Agricultural Total (LT) HV 1 Railway Traction HV 2 Coal Mines HV 3.1 Industrial HV 3.2 Non Industrial HV 4 Seasonal HV 5 WW,LIS,Other than Agr HV 6 Bulk Residential Users HV 7 Bulk Supply to Exemptees Total (HT) TOTAL LT+HT Table 70: Summary of Units Units (MU) Actual Actual Actual Actual RE Projection Projection Projection LV 1 Domestic LV 2 Non-Domestic LV 3 WW & Street Light LV 4 LT Industrial LV 5.1 Agriculture Irrigation Pumps LV 5.2 Other than Agricultural Total (LT) HV 1 Railway Traction HV 2 Coal Mines HV 3.1 Industrial HV 3.2 Non Industrial HV 4 Seasonal HV 5 WW,LIS,Other than Agr HV 6 Bulk Residential Users HV 7 Bulk Supply to Exemptees Total (HT) TOTAL LT+HT M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 37

38 A2: POWER PURCHASE COSTS 2.1 This section details the power purchase availability and cost thereof for the future years for the state of Madhya Pradesh. The forecasts takes into account the following aspects (a) (b) (c) (d) Current long term allocated generation capacity of MP New generating Capacities coming in future years both for MP Genco, Central Sector, Joint venture, UMPP and under competitive bidding Impact of generation capacity allocation in WR and ER Performance of plants in past three years 2.2 The forecasts for cost of power purchase for future years takes into account the following aspects (a) (b) (c) Fixed and Variable costs have been taken as per the approved order of the stations by the appropriate Regulatory Commission The fuel cost escalation price has been taken as per the CERC order on inflation index The other costs i.e. taxes, incentive, MOPA charges, ED and Cess have been taken as per the bills raised by NTPC for past financial years. 2.3 Based on all the above factors a detailed forecast for power purchase scenario has been worked out which is described in the subsequent sections of the note. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 38

39 A3: ASSESSMENT OF AVAILABILITY Central Sector Stations Allocated to MP 3.1 The Western Region central sector stations which are allocated to M.P are listed in the table below with details of the capacity allocation to the state. Table 71: Allocated capacity to MP in Western Region generating stations 4 S.No. Region Total Capacity Firm Allocation Infirm Allocation Total Allocation to M.P. (MW) (MW) (MW) (MW) 1 NTPC-Korba WR NTPC NTPC-Vindyachal I WR NTPC NTPC-Vindyachal II WR NTPC NTPC-Vindyachal III WR NTPC NTPC-Kawas WR NTPC NTPC-Gandhar WR NTPC KAPP WR NPC TAPS WR NPC NTPC -Sipat II WR NTPC The Eastern Region central sector which are allocated to M.P. are listed in the table below with details of the capacity allocation to the state. Table 72: Allocated capacity to MP in Eastern Region generating stations 5 S.No. Region Total Capacity Firm Allocation Infirm Allocation Total Allocation to M.P. (MW) (MW) (MW) (MW) 1 NTPC - Farakka ER NTPC NTPC - Talcher ER NTPC NTPC - Kahalgaon ER NTPC NTPC - Kahalgaon-II ER NTPC It should be noted that the infirm allocation is subject to change as per WRPC/ERPC directives from time to time, therefore for forecasting the availability from the stations the latest allocation has been assumed to be constant over the years. 4 The infirm allocation is as per the WRPC letter dated 19 th November Allocation is as per the ERPC website M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 39

40 Review of past Ex-bus availability 3.4 The table provides details of the station-wise ex-bus energy sent out 6 during last three years i.e. FY 07, FY 08 and FY 09. Table 73: Ex-bus MUs sent out by stations during FY07 7 S.No. Stations Region Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 1 NTPC-Korba WR NTPC-Vindyachal I WR NTPC-Vindyachal II WR NTPC-Vindyachal III WR NTPC-Kawas WR NTPC-Gandhar WR KAPP WR TAPS WR NTPC - Farakka ER NTPC - Talcher ER NTPC - Kahalgaon ER Table 74: Ex-Bus MUs sent out by stations during FY As per the monthly reports of WRPC and ERPC 7 As per the WRPC and ERPC monthly reports M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 40

41 S.No. Stations Region Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 1 NTPC-Korba WR NTPC-Vindyachal I WR NTPC-Vindyachal II WR NTPC-Vindyachal III WR NTPC-Kawas WR NTPC-Gandhar WR KAPP WR TAPS WR NTPC - Farakka ER NTPC - Talcher ER NTPC - Kahalgaon ER Table 75: Ex-Bus MUs sent out by stations during FY09 9 S.No. Stations Region Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 1 NTPC-Korba WR NTPC-Vindyachal I WR NTPC-Vindyachal II WR NTPC-Vindyachal III WR NTPC-Kawas WR NTPC-Gandhar WR KAPP WR TAPS WR NTPC - Farakka ER NTPC - Talcher ER NTPC - Kahalgaon ER As per the WRPC and ERPC monthly reports 9 As per the WRPC and ERPC monthly reports M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 41

42 Projection of Availability for future years 3.5 The projection of availability for the future years has been done based on the average availability of past three years. The table below provides details of the projection for future years. Table 76: Projected ex-bus availability for FY10-FY13 10 in MUs S.No. Stations Region FY 10 FY 11 FY 12 FY 13 1 NTPC-Korba WR 3,495 3,425 3,496 3,458 2 NTPC-Vindyachal I WR 3,079 3,037 3,058 3,043 3 NTPC-Vindyachal II WR 2,362 2,303 2,305 2,312 4 NTPC-Vindyachal III WR 1,704 1,249 1,689 1,561 5 NTPC-Kawas WR NTPC-Gandhar WR KAPP WR TAPS WR NTPC Farakka ER NTPC Talcher ER NTPC Kahalgaon ER Projections for Sipat-II and Kahalgaon-II 3.6 The new plants Sipat-II and Kahalgaon-II were commissioned during FY09. First unit of Sipat-II was commissioned in June 08 while the second unit was commissioned in January 09, similarly Kahalgaon-II was commissioned in January 09. Future projections for these two plants have been done based on past six months actual data. Table 77: Projected ex-bus availability for FY10-FY13 11 in MUs S.No. Stations Region FY 10 FY 11 FY 12 FY 13 1 NTPC-Sipat - II WR 1,230 1,230 1,230 1,230 2 NTPC-Kahalgaon - II ER FY 10 Projections based on actual data till 30 th Sep FY 10 Projections based on actual data till 30 th Sep 2009 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 42

43 Bilateral and Joint Venture Stations 3.7 The Bilateral and Joint-Venture stations in which Madhya Pradesh is having its allocation are listed in the table below: Table 78: Bilateral and Joint Venture Stations S.No. Region Total Capacity Firm Allocation Infirm Allocation Total Allocation to M.P. (MW) (MW) (MW) (MW) 1 Sardar Sarovar WR JV Omkareshwar HPS State JV DVC (MTPS) ER DVC Indirasagar State JV Review of past Ex-bus availability 3.8 The table provides details of the station-wise ex-bus energy sent out 12 during last three years i.e. FY 07, FY 08 and FY 09. Table 79: Past ex-bus availability for the joint venture projects S.No. Stations Region FY 07 FY 08 FY 09 1 Sardar Sarovar WR 2,017 2,484 1,263 2 Omkareshwar HPS State DVC (MTPS) ER Indirasagar State 2,592 2,715 1, As per the monthly reports of WRPC and ERPC M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 43

44 Projection of availability for future years 3.9 Considering the availability from these stations on a month wise basis for past years, future projections are based on the average of past three years. The table below provides details of the availability considered for FY10-FY13. Table 80: Projected ex-bus availability for FY10-FY13 in MUs S.No. Stations Region FY 10 FY 11 FY 12 FY 13 1 Sardar Sarovar WR 1,864 1,921 1,870 1,683 2 Omkareshwar HPS State DVC (MTPS) ER Indirasagar State 1,923 2,274 2,051 1,904 MP Genco stations 3.10 The availability of MPGenco stations have been taken as per the MYT petition submitted by MPGenco for the period FY Projections for future years i.e. for FY13have been considered as per the capacity addition plan of MPGenco and considering the operational trend. The table below provides projection of the availability for MPGenco stations for future years. Table 81: Projected ex-bus availability for FY10-FY13 in MUs S.No. Stations Region FY 10 FY 11 FY 12 FY 13 Thermal Stations 1 ATPS - Chachai-PH 1&2 State 603 1, STPS - Sarani-PH 1, 2 & 3 State 7,228 6,208 6,615 6,629 3 SGTPS - Bir'pur - PH 1 & 2 State 5,386 4,730 4,871 4,898 4 SGTPS Extn State 3,500 3,500 3,509 3,509 5 ATPS Extn State 117 1,406 1,406 1,406 Sub-Total 16,834 16,876 17,259 17,322 6 CHPS-Gandhi Sagar State CHPS-RP Sagar & Jawahar Sagar 8 Pench THPS State State Banasgar Tons HPS (I to III) State Banasgar IV State 912 1,313 1,161 1, Birsingpur HPS State Bargi HPS State Rajghat HPS State Marhi Khera HPS State M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 44

45 S.No. Stations Region FY 10 FY 11 FY 12 FY 13 Sub-Total 1,701 2,693 2,271 2,229 Grand Total 18,535 19,569 19,530 19,551 Capacity addition plan 3.11 The capacity addition plan for the state which includes MPGenco capacity addition, ISGS stations and other JV and case-1 addition capacity is presented in the table below with details of the capacity allocated to M.P. and their unit wise tentative commissioning schedule. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 45

46 Table 82: Capacity addition plan till FY 13 Sr. Station Region Fuel Unit Total No. / State Capacity (MW) Allocated Capacity to MP State (MW) Months of Operation 1 NTPC Sipat - Stage I WR Coal Sub Total 1, NTPC Sipat - Stage II WR Coal Sub Total 1, NTPC Kahalgoan Stage II ER Coal Sub Total 1, NTPC North Karanpura ER Coal FY 09 FY 10 FY 11 FY 12 FY 13 Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Sub Total 1, NTPC Barh - I ER Coal Unit Sub Total 1, NTPC Mauda I - Nagpur WR Coal Unit Unit Unit Unit M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 46

47 Sr. No. Station Region / State Fuel Unit Total Capacity (MW) Allocated Capacity to MP State (MW) Months of Operation Sub Total 1, DVC (Mejia TPS Extn.) ER Coal Sub Total FY 09 FY 10 FY 11 FY 12 FY 13 Unit Unit DVC (CTPS) ER Coal Unit Sub Total DVC (Durgapur Steel) ER Coal Sub Total 1, PTC - Lanco Amarkantak WR Coal Unit Unit Unit Unit Unit Sub Total PTC - Torrent WR Gas 1, Surat (Gas) Sub Total 1, Pragati Power WR Gas Unit Sub Total 1, Unit Unit IFFCO - Sarguja WR Coal Unit Unit Sub Total 1, M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 47

48 Sr. No. Station Region / State Fuel Unit Total Capacity (MW) Allocated Capacity to MP State (MW) Months of Operation 14 MPPGCL Malwa TPS State Coal Sub Total 1, , MPPGCL - SGTPS - Birsinghpur Extn Stage II Sub Total MPPGCL - ATPS FY 09 FY 10 FY 11 FY 12 FY 13 Unit Unit State Coal Unit State Coal Unit Amakantak Extn Stage II Sub Total MPPGCL STPS - Sarni State Coal Sub Total Unit Unit Sasan UMPP UMPP Coal Unit Unit Unit Unit Unit Unit Sub Total 3, , M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 48

49 Assumption for projecting availability from the future capacities 3.12 The assumptions used for forecasting the availability from the future capacities is explained as below: (a) PLF considered for Coal based stations is 85% (b) PLF considered for Gas based stations is 68% (as current gas availability is very poor) (c) Auxiliary consumption considered for Coal based stations is 8.5% (d) Auxiliary consumption considered for Gas based stations is 3% (e) The availability has been forecasted based on the month of operation in a particular year Based on the above assumptions the forecast has been done for the future years till FY13 for the additional capacities. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 49

50 Overall availability 3.14 The overall availability based on the discussions above is presented below: Table 83: Overall MUs forecast till FY 13 FY 10 FY 11 FY 12 FY 13 NTPC-Korba 3,495 3,425 3,496 3,458 NTPC-Vindyachal I 3,079 3,037 3,058 3,043 NTPC-Vindyachal II 2,362 2,303 2,305 2,312 NTPC-Vindyachal III 1,704 1,249 1,689 1,561 NTPC-Kawas NTPC-Gandhar KAPP TAPS NTPC - Farakka NTPC - Talcher NTPC - Kahalgaon NHDC - Indira Sagar 1,923 2,274 2,051 1,904 Sardar Sarovar 1,864 1,921 1,870 1,683 Omkareshwar HPS Lanco Amarkantak ATPS - Chachai-PH 1& , STPS - Sarani-PH 1, 2 & 3 7,228 6,208 6,615 6,629 SGTPS - Bir'pur - PH 1 & 2 5,386 4,730 4,871 4,898 CHPS-Gandhi Sagar CHPS-RP Sagar & Jawahar Sagar Pench THPS Banasgar Tons (I to III) 912 1,313 1,161 1,186 Banasgar Tons IV Birsingpur HPS Bargi HPS Rajghat HPS Marhi Khera HPS Mini-Micro HPS RSEB (Chambal,Satpura) UPPCL (Rihand,Matatila,Rajghat) MSEB(Pench) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 50

51 FY 10 FY 11 FY 12 FY 13 GridCo (Hirakud) Others 1 (Wind & CPP) NTPC - Sipat Stage II 1,230 1,230 1,230 1,230 NTPC - Kahalgaon DVC (MTPS) SGTPS - Bir'pur - Extn 3,500 3,500 3,509 3,509 ATPS - Chachai-Extn 117 1,406 1,406 1,406 NTPC Sipat - Stage I 55 1,074 1,928 NTPC North Karanpura NTPC Barh - I 464 1,147 1,526 NTPC Mauda - Nagpur ,135 DVC (Chandrapur TPS Extn.) 168 1,249 1,366 1,363 DVC (Durgapur Steel) PTC - Torrent Surat (Gas) Pragati Power IFFCO - Sarguja MPPGCL - Malwa TPS - Purni - 7,378 7,378 MPPGCL - STPS - Sarni - 1,708 3,407 38,886 41,284 53,986 58, The Discom wise projection of availability has been considered as per the GoMP notification No F XIII dated 16th June M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 51

52 Table 84: Capacity allocation to Discoms as per GoMP notification Generating Stations Discom wise Allocation in % Central West East Total 1 WR KSTPS 55.00% 31.00% 14.00% % 2 WR VSTPS-I 55.00% 31.00% 14.00% % 3 WR VSTPS-II 23.00% 39.00% 38.00% % 4 WR Kawas GPP 10.00% 32.00% 58.00% % 5 WR Gandhar GPP 10.00% 32.00% 58.00% % 6 WR Kakrapar APS 10.00% 32.00% 58.00% % 7 WR Tarapur APS 10.00% 53.00% 37.00% % 8 WR VSTPS - III 10.00% 32.00% 58.00% % 9 WR Sipat -II 20.00% 45.00% 35.00% % 10 ER Farakka STPS 20.00% 32.00% 48.00% % 11 ER Kahalgaon STPS 20.00% 32.00% 48.00% % 12 ER Kahalgaon STPS-II 10.00% 36.00% 54.00% % 13 ER Talcher STPS 20.00% 32.00% 48.00% % 14 DVC 10.00% 45.00% 45.00% % 15 ATPS 39.00% 29.00% 32.00% % 16 Amrkantak Ext 39.00% 29.00% 32.00% % 17 STPS 49.90% 31.05% 19.05% % 18 Lanco Amarkantak 10.00% 40.00% 50.00% % 19 SGTPS 44.00% 30.00% 26.00% % 20 SGTPS Ext 44.00% 30.00% 26.00% % 21 Gandhi Sagar 40.00% 41.00% 19.00% % 22 RP Sagar & J Sagar 40.00% 41.00% 19.00% % 23 Pench 42.00% 20.00% 38.00% % 24 Rajghat 42.00% 20.00% 38.00% % 25 Bargi 45.50% 31.85% 22.65% % 26 Bansagar - I, II, III 25.00% 32.00% 43.00% % 27 Bansagar - IV 25.00% 32.00% 43.00% % 28 Birsinghpur 30.00% 15.00% 55.00% % 29 Marikheda 30.00% 30.00% 40.00% % 30 Marikheda unit % 30.00% 40.00% % 31 Indira Sagar 15.00% 41.00% 44.00% % M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 52

53 Generating Stations Discom wise Allocation in % Central West East Total 32 Sardar Sarovar 40.00% 40.00% 20.00% % 33 Omkareshwar 40.00% 40.00% 20.00% % Grand Total Gross Weighted Average 33.86% 35.08% 31.06% % 3.16 Any future capacity which is proposed to come has been allocated to Tradeco and the Discom wise availability has been calculated for the current existing capacities. PGCIL Losses 3.17 The Inter-State transmission losses have been computed separately for Eastern Region and Western Region stations. For Western Region past data (44 weeks of FY , till week ending 25th January, 09) as available on the PGCIL website has been taken and an average loss level of 5.09% has been used. Similarly, for Eastern Region transmission line losses an average loss level (45 weeks of FY ) of 3.79% has been considered. East Discom availability at state boundary 3.18 The availability at state boundary has been calculated after considering the ER and WR PGCIL losses and is presented in table below. Table 85: Availability for East Discom at State Boundary (MUs) FY 10 FY 11 FY 12 FY 13 NTPC-Korba NTPC-Vindyachal I NTPC-Vindyachal II NTPC-Vindyachal III NTPC-Kawas NTPC-Gandhar KAPP TAPS NTPC - Farakka NTPC - Talcher NTPC - Kahalgaon M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 53

54 FY 10 FY 11 FY 12 FY 13 NHDC - Indira Sagar 846 1, Sardar Sarovar Omkareshwar HPS Lanco Amarkantak ATPS - Chachai-PH 1& STPS - Sarani-PH 1, 2 & 3 1,377 1,183 1,260 1,263 SGTPS - Bir'pur - PH 1 & 2 1,400 1,230 1,266 1,274 CHPS-Gandhi Sagar CHPS-RP Sagar & Jawahar Sagar Pench THPS Banasgar Tons (I to III) Banasgar Tons IV Birsingpur HPS Bargi HPS Rajghat HPS Marhi Khera HPS Mini-Micro HPS RSEB (Chambal,Satpura) UPPCL (Rihand,Matatila,Rajghat) MSEB(Pench) GridCo (Hirakud) Others 1 (Wind & CPP) NTPC - Sipat Stage II NTPC - Kahalgaon DVC (MTPS) SGTPS - Bir'pur - Extn ATPS - Chachai-Extn Total ,036 11,105 10, The availability from the stations which have been kept with MP Tradeco are allocated to the East Discom based on the weighted average capacity allocation and these stations will be considered to be despatched as per the merit order principle. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 54

55 A4: ESTIMATION OF COSTS For existing stations 4.1 The Fixed Costs of MP Genco s stations for FY 10 to FY 13 have been kept at the same level as that of FY 09 and as approved by the Commission in its Multi Year Tariff Order dated 7th March 2006 and Order dated 18th March Central Sector Stations for which capacity allocation percentage to each individual Discom has been defined by GoMP in its 12 th June 2009 notification, Fixed Costs as approved by Central Electricity Regulatory Commission Orders for each individual station for FY 09 have been adopted for FY 10 to FY 13 also. The reason for adopting FY 09 Fixed Costs of MP Genco s Stations and Central Generating Stations, for FY 10 and beyond tariff orders is not available at the time of this filing. 4.2 Variable costs (including FPA) for MPGenco & Central Generating Stations have been adopted as per the September 2009 bill and have been annually escalated at the rate specified by the CERC in its notification dated 27 th March For the new stations which have become available to state during the current year which are of the Central & State Sector Stations, the following methodology has been adopted: (a) (b) (c) (d) (e) For Kahalgoan Phase II, fixed and variable cost as approved by CERC till FY 09 in its Provisional Tariff Order dated 18th Dec 2007 has been adopted. Also the variable cost has been escalated at the rate of 6.35% as per the 27 th Mar 2009 notification on escalation rates approved by CERC. For Sipat-I and Sipat II, Fixed and Variable Cost as indicated in the Retail Supply Tariff Order dated 29 th July 2009 has been adopted. Also, the variable cost has been escalated at the rate of 6.35% as per the 27 th Mar 2009 notification on escalation rates approved by CERC. For NTPC Barh Phase I single part tariff as provided in the Power Purchase Agreement has been adopted for FY 10 to 13. For DVC Mejia single part provisional tariff as approved by the CERC in its order dated 22nd Aug 2008 has been adopted. For DVC Chandrapur, single part tariff of DVC Mejia has been adopted since there were no means to assume this cost for this particular station. For MP Genco rate for Birisinghpur Extension and Amarkantak Phase III, fixed and variable cost is taken as indicated in the Retail Supply Tariff Order dated 29 th July Also, the variable cost has been escalated at the rate of 6.35% as per the 27 th March 2009 notification on escalation rates approved by CERC M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 55

56 4.4 The following table provides a summary of fixed and variable costs of each of the stations that have been considered for determining the power purchase cost with the following assumptions: (a) (b) (c) East, West and Central Discoms share of fixed cost has been considered for its ARR purpose. Fuel Price Adjustment (FPA) has been projected in the same manner as that of variable cost per unit and is included in the variable component of the generation cost. The fixed and the variable costs of the new stations have been pooled together to get an average bulk supply rate 13 at which MP Tradeco will supply power to each individual Discom. For Future capacities 4.5 For all the future capacities which are proposed to be commissioned in future the rates as per the PPAs have been considered. This has been explained in the note in subsequent sections. Details of costs for Existing power plants 4.6 The table below provides the details of the costs viz. fixed costs and variable costs for all the existing plants Table 86: Cost details of existing stations Fixed charges In Rs. Crs. for the State Basic Energy Charges in Paise/kWh FPA charges In Paise/kWh Escalated at 6.35% for future Years Other charges In Paise/kWh NTPC-Korba NTPC-Vindyachal I NTPC-Vindyachal II NTPC-Vindyachal III NTPC-Kawas NTPC-Gandhar KAPP TAPS NTPC - Farakka NTPC - Talcher Bulk Supply Rate includes fixed & variable Generation Cost and also cost of the associated Transmission Capacities of both PGCIL & MP Transco. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 56

57 Fixed charges In Rs. Crs. for the State Basic Energy Charges in Paise/kWh FPA charges In Paise/kWh Escalated at 6.35% for future Years Other charges In Paise/kWh NTPC - Kahalgaon NHDC - Indira Sagar 478 Sardar Sarovar 157 Omkareshwar HPS 263 Lanco Amarkantak 0 0 ATPS - Chachai-PH 1& STPS - Sarani-PH 1, 2 & SGTPS - Bir'pur - PH 1 & CHPS-Gandhi Sagar 6 CHPS-RP Sagar & Jawahar Sagar 0 Pench THPS 8 Banasgar I to III 92 Banasgar Tons HPS-Bansagar IV 16 Birsingpur HPS 4 Bargi HPS 10 Rajghat HPS 4 Marhi Khera HPS 24 0 NTPC - Sipat Stage II NTPC - Kahalgaon DVC (MTPS) SGTPS - Bir'pur Extn ATPS - Chachai-Extn Details of Costs for future capacities 4.7 The table below provides details of the costs considered for future capacities which are based on the existing PPAs signed with them. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 57

58 Table 87: Cost details of future stations and basis Fixed Costs Rs./kWh Energy Charges Rs./kWh Escalated for Future years NTPC Sipat - Stage I As per MPERC tariff Order NTPC Sipat - Stage II As per actual Bills NTPC Kahalgoan Stage II 1.28 As per MPERC tariff Order NTPC North Karanpura 1.88 As per the PPA NTPC Barh I 1.89 As per the PPA DVC (Mejia TPS Extn.) 2.90 As per the current rate approved by CERC DVC (Chandrapur TPS Extn.) 2.90 Considered same as Mejia DVC (Durgapur Steel) 2.90 Considered same as Mejia PTC - Torrent Surat (Gas) 2.20 As per the PPA Pragati Power (Gas) 3.60 As per MoP notification MPPGCL - Malwa TPS - Purni 1.19 Preliminary estimates of Genco MPPGCL - SGTPS - Birsinghpur Extn Stage II Considered same as existing capacity MPPGCL - ATPS - Amakantak Extn Stage II Considered same as existing capacity MPPGCL - STPS Sarni 1.32 Considered same as existing capacity Sasan UMPP As per Case-II bidding 4.8 Based on the above details power purchase shall be worked out based on the requirement and energy balance. Basis M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 58

59 A5: DEMAND PROJECTIONS AND ENERGY BALANCE Demand Projection 5.1 The Projected average un-restricted/restricted Demand, average supply Hrs and therefore corresponding Energy Requirement for the EAST DISCOM during the year to are as under:- Table 88: Cost details of future stations and basis Particular Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar Projected Average Un-restricted Demand (MW) Hrs Hrs Hrs Hrs Projected Supply Hrs. CHQ DHQ THQ Rural 3 Ø Rural 1 Ø Rural Total Projected Average Restricted Demand (MW) Hrs Hrs Hrs Hrs No. of Days Energy Requirement (MU) Hrs Hrs Hrs Hrs Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 59

60 Table 89: Cost details of future stations and basis Particular Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar Projected Average Un-restricted Demand (MW) Hrs Hrs Hrs Hrs Projected Supply Hrs. CHQ DHQ THQ Rural 3 Ø Rural 1 Ø Rural Total Projected Average Restricted Demand (MW) Hrs Hrs Hrs Hrs No. of Days Energy Requirement (MU) Hrs Hrs Hrs Hrs Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 60

61 Table 90: Cost details of future stations and basis Particular Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar Projected Average Un-restricted Demand (MW) Hrs Hrs Hrs Hrs Projected Supply Hrs. CHQ DHQ THQ Rural 3 Ø Rural 1 Ø Rural Total Projected Average Restricted Demand (MW) Hrs Hrs Hrs Hrs No. of Days Energy Requirement (MU) Hrs Hrs Hrs Hrs Total M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 61

62 5.2 The EAST DISCOM is planning for minimizing the energy supply to the high loss area by way of differential load shedding. This will result either in saving in the INPUT Energy and reduce Power purchase or increase in revenue by way of supplying additional energy to the area having minimum loss. This arrangement will be made only after looking to the ground reality. This planning will be proposed as under:- Table 91: Differential load shedding Sl.No. Area Loss 25%-40% Losses Above 40% and below 60% Losses 60% and Above 1 CHQ Additional Additional 4 Hrs. 2 Hrs. 2 DHQ As per Schedule Additional 2 Hrs. Additional 4 Hrs. 3 THQ No additional Load shedding if revenue is at par or above with Acos Energy Balance 5.3 The Distribution losses for the MYT period FY 11 to 13 have been taken as per the submission made by GoMP on the draft regulations i.e % (FY 11), 28.50% (FY 12) and 24.00% (FY 13). It is prayed that the Commission may kindly consider these losses for the purpose of tariff determination, rather than the loss trajectory stipulated in the MYT regulation. 5.4 The Inter-State transmission losses have been computed separately for Eastern Region and Western Region stations as explained in earlier section. The intra-state transmission losses at 4.09% for FY which is the current level of transmission losses. The energy balance for East Discoms for FY is presented in the following table: Table 92: Energy Balance for East Discom EAST DISCOM FY 11 FY 12 FY 13 Total Units sold to LT category (MU) 4,216 4,653 5,161 Total Units sold to HT category (MU) 3,016 3,160 3,313 Total Units Sold by Discom (MU) 7,232 7,813 8,474 Distribution loss (%) 32.50% 28.50% 24.00% Distribution loss (MU) 3,475 3,107 2,669 Units Input at Distribution Interface (MU) 10,707 10,919 11,143 Transmission loss (%) 4.09% 4.09% 4.09% Transmission loss (MU) Input at G-T interface (MU) 11,164 11,385 11,618 External Loss (MU) Total Units Purchased (MU) 11,423 11,658 11,884 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 62

63 Calculation of Month-wise loss levels 5.5 For the purpose of calculation of requirement for the Discom, monthwise loss levels have been calculated on the past data, keeping in view the annual targets. This has been done to capture the seasonality in demand and therefore implication on the power purchase due to higher losses. The table shown below details out the calculation for month-wise loss levels. Table 93: Month-wise loss levels since FY 03 April May June July August September October November December January February March Annual FY % 32.60% 31.76% 32.79% 32.65% 34.34% 35.35% 34.05% 36.24% 37.53% 23.86% 35.86% 33.77% FY % 35.50% 32.28% 35.60% 38.31% 36.12% 38.27% 38.91% 39.29% 38.26% 37.46% 40.40% 37.27% FY % 38.56% 31.30% 37.04% 38.29% 39.02% 36.87% 38.43% 39.99% 35.77% 33.44% 37.21% 37.08% FY % 35.90% 34.43% 35.17% 38.71% 35.41% 39.58% 38.76% 37.47% 36.52% 34.15% 33.86% 36.46% FY % 34.32% 31.53% 32.42% 35.73% 34.75% 38.13% 35.96% 35.96% 39.27% 34.04% 40.14% 35.81% FY % 38.63% 34.25% 35.53% 38.45% 37.50% 40.82% 42.20% 43.80% 43.37% 40.64% 41.50% 40.02% FY % 38.09% 30.55% 34.78% 37.44% 38.32% 40.99% 41.81% 38.92% 34.15% 34.24% 36.39% 37.23% Average 36.58% 36.23% 32.30% 34.76% 37.08% 36.50% 38.57% 38.59% 38.81% 37.84% 33.97% 37.91% 36.81% Deviation 0.22% 0.58% 4.50% 2.04% -0.28% 0.31% -1.77% -1.78% -2.00% -1.03% 2.83% -1.10% 5.6 Based on the past month-wise actual losses an average monthly loss levels have been obtained, the deviation of these losses from annual losses has been calculated to apply this on the annual targets to calculate the future month-wise losses. Table 94: Month-wise loss levels for future years April May June July August September October November December January February March Yearly Average % 31.92% 28.00% 30.46% 32.78% 32.19% 34.27% 34.28% 34.50% 33.53% 29.67% 33.60% 32.50% % 27.92% 24.00% 26.46% 28.78% 28.19% 30.27% 30.28% 30.50% 29.53% 25.67% 29.60% 28.50% % 23.42% 19.50% 21.96% 24.28% 23.69% 25.77% 25.78% 26.00% 25.03% 21.17% 25.10% 24.00% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 63

64 Month wise sales 5.7 Month wise sales has been forecasted based on the actual data of past four years, the details of the month wise sales is presented in table below: Table 95: Month-wise sales for FY Month MU MU MU FY 11 FY 12 FY 13 April May June July August September October November December January February March Total 7, , , Based on the month-wise sales and month-wise distribution losses as explained in sections and transmission losses of 4.09%, the requirement at state boundary is calculated below: Table 96: Month-wise requirement at state boundary for FY Month MU MU MU FY 11 FY 12 FY 13 April May June July August September October November December January February March Total , , , , , , , , , , , , , , , M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 64

65 Short-Term power purchase requirement 5.9 Based on the above power purchase requirement, the short-term power purchase requirement has been calculated. The short-term requirement comes only for the month of November and December 2010 during FY11. The cost considered for short-term power purchase requirement is as per the CERC price cap of Rs. 6/kWh, open access charges of Rs 0.20/kWh and trading margin of Rs. 0.04/kWh. Thus a rate of Rs. 6.24/kWh has been used for calculating the cost of short-term power. The table below provides details of short term purchase and costs. Table 97: Details of short-term power purchase Nov-10 Dec-10 Total MU Purchased Rate of Short-term purchase (Rs./kWh) Total Costs (Rs. Crs.) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 65

66 A6: POWER PURCHASE COSTS FOR EAST DISCOM Power Purchase and Procurement - Requirement of MPERC 6.1 Section 24.1 of the Madhya Pradesh Electricity Regulatory Commission Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for supply and wheeling of electricity and methods and principles for fixation of charges) Regulation (G-35 OF 2009) provides that "Each year s estimated sale as per clause 22 will be grossed up by the percentage losses as indicated in the clause 23.1 to arrive at the figure of power purchase requirement of the Licensee for such year. Section 225 of the said Regulation provides the methods of estimation of power purchase cost. In addition, as part of the formats issued along with the above mentioned Tariff Regulations, the Distribution Licensees are to provide information related to power availability, procurement and costs from various concerned generating stations and other sources. 6.2 It is submitted that licensee has to meet the power demand of the consumers, as per the relevant provisions of the Electricity Act, Therefore, quantum of power purchase may not be restricted on the basis of normative loss levels. Under any given operating conditions of the power supply system, the quanta of energy and power demand are more or less uncontrollable variables and the loss level is an indeterminate quantity. While, normative loss level and hence the normative quantum of power purchase are quantities which are based on a hypothetical system model with frozen conditions of these variables e.g. input, output, loss. The power and energy demand varies from instant to instant and it is not possible to predict the loss level for any particular instant. For meeting the peak system demand & associated losses, scheduling of additional generation shall be required, and therefore, for tariff determination purpose fixed cost of all the scheduled generators are to be considered. For more clarity, monthly load duration curve may be referred while imposing merit order dispatch. The principle of deciding a normative quantum of power based on a normative loss level is neither logical nor reasonable for the licensee and ultimately for the consumers. The principle of normative power requirement is impossible to be followed in practice, and, it can only result in indiscriminate load shedding/curtailment. 6.3 According to National tariff policy vide clause All power purchase costs need to be considered legitimate unless it is established that the merit order principle has been violated or power has been purchased at unreasonable rates. It means that, the Regulator may exercise checks from the point of view of prudent cost of power (e.g. based on merit order principle). If the power purchase meets the requirement of prudence, then, all the power purchase cost may be treated as prudent cost. For the purpose of tariff determination, the average power purchase cost per unit based on the prudent cost may be considered. That means, cost based on average power purchase cost per unit on the quantum of power based on normative loss will be passed through to the consumer and any cost in excess of that shall be borne by the licensee. In any case, the full fixed cost element of the power purchase cost should be passed through to the consumer, as a legitimate cost. This methodology shall maintain proper balance between the interests of the consumers and the licensee, as it is based on overall averaging method, so that all the impacts over an annual cycle are accounted for, distributed and shared equitably. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 66

67 Prevailing Arrangement for Power Procurement in state of Madhya Pradesh 6.4 The Government of Madhya Pradesh, in exercise of its powers under Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 and Electricity Act, 2003, effected the transfer14 and vesting of the functions, properties, interests, rights and obligations of MPSEB relating to the Bulk Purchase and Bulk Supply of Electricity in the State Government and simultaneously re-transferred and revested the same to MP Power Trading Company ('Tradeco' or 'MP Tradeco'). The Transfer Scheme Rules vested the following key functions, rights and responsibilities of the Board to MP Tradeco: 6.5 The bulk purchase and bulk supply functions, namely, purchase of electricity in bulk from the Generating Companies and supply of electricity in bulk to the Discoms in MP. 6.6 The Power Purchase Agreement or arrangement existing between the Board and the generating companies including inter-state Joint Venture Projects and the Bulk Supply Agreements with the electricity distribution companies in the State of Madhya Pradesh and all arrangements in relation to trading of electricity, inter-state and intra-state. 6.7 All short, medium and long term Bulk Power Purchase Agreements or Arrangements between the Board and the power traders existing as on the effective date. 6.8 The Bulk Power Transmission Agreement existing between the Board and Power Grid Corporation of India as well as other Transmission licensees for transmission and wheeling of power inter-state or intra-state. 6.9 Any future agreements that were being contemplated/ processed by the Board in respect of any of the above and any activities in regard to electricity trading in the State Thus, MP Tradeco has been entrusted with the responsibility of procurement of power in bulk and supplying to the three Discoms. In accordance with this arrangement related to power procurement, the Distribution Licensee has entered into bulk supply arrangement/agreement with MP Tradeco to meets its supply obligations. In addition to above, the Government of Madhya Pradesh through its Gazette Notification Order No F.RS-4-XIII-2001 dated 17th October 2006 allocated the installed capacity available as on September 2006 to all the three Discoms. The Allocation percentage from each of the generating station to the three Discoms was further revised by GoMP through its Gazette Notification Order No. 1929/F.RS/4/XIII/2001 dated 14th March 2007 and then again revised on 19th March 2008 and further revised on 16th June 2009 through its Gazette Notification Order No F XIII since the revenue requirement of each Discom was different and also to keep the retail tariff uniform in the State without sacrificing the incentive for loss reduction & efficiency gains by the Discoms. 14 The transfer was effected through "M.P. Electricity Reforms Transfer Scheme Rules 2006" (Transfer Scheme Rules) vide Notification No.3474 /FRS/17/XIII/2002 dated 3rd June 2006 (Transfer Scheme Rules). M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 67

68 Submission of Distribution Licensee to Hon'ble Commission 6.11 The Licensee has strived to provide as much requisite information as it could obtain from interactions with MP Genco, MP SLDC, MP Transco and MP Tradeco. In this regard, the Licensee has taken guidance from Section 18 of the MPERC (Power Purchase and Procurement) Regulations 2004 Revision 1, 2006 (RG-19(I) of 2006) which state that 6.12 "The Distribution Licensee shall make long-term demand and supply availability assessments in consultation with any or all concerned including state sector generating companies, discoms, private distribution licensees, central sector generating companies and transmission companies /Regional Electricity Board, National / Regional Load Dispatch Centres, Central Electricity Authority." (a) (b) (c) (d) (e) The forecast takes into account the following aspects Current long term allocated generation capacity of MP New generating Capacities coming in future years both for MP Genco, Central Sector, Joint venture, UMPP and under competitive bidding Impact of generation capacity allocation in WR and ER Performance of plants in past three years 6.13 The forecasts for cost of power purchase for future years takes into account the following aspects (a) (b) (c) Fixed and Variable costs have been taken as per the approved order of the stations by the appropriate Regulatory Commission The fuel cost escalation price has been taken as per the CERC order on inflation index The other costs i.e. taxes, incentive, MOPA charges, ED and Cess have been taken as per the bills raised by NTPC for past financial years Based on all the above factors a detailed forecast for power purchase scenario has been worked out which is described in the subsequent sections of the note. PGCIL Costs 6.15 The PGCIL charges to be paid by MP consist of charges to be paid for transmission system of WR and ER. The estimate of inter-state transmission cost for existing stations has been considered as per the methodology used by the Licensee, which is on the basis of the actual bills for April 2009 to October 2009 for eastern and western region. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 68

69 6.16 These charges for East Discom have been allocated based on their firm capacity as per the GoMP notification. For any capacities to be commissioned in future the PGCIL costs have been allocated to Tradeco. The table below gives a detail of the charges allocated to East Discom. Table 98: PGCIL charges in Rs. Crs. Discom Eastern region Western Region Others Total Intra-state Transmission Charges 6.17 For the purpose of calculation of intra-state transmission costs, the charges have been taken as per the MYT petition submitted by MP Transco for the period FY10-12 before the Hon ble Commission. For the year FY 13, charges and capacity for FY 12 has been taken into consideration. Table 99: Intra-state transmission charges SL.No. Year Contracted Capacity (MW) Monthly Transmission Charge (Rs/MW) Total charges (Rs.Crs.) 1 FY11 2, ,533, FY12 2, ,629, FY13 2, ,629, Total Power Purchase costs 6.18 The details of the total power purchase costs is presented in the table below for the period FY 11-13, the station wise details are provided in the tariff formats of the Commission. Table 100: Total Power purchase cost for FY11-13 EAST DISCOM FY 11 FY 12 FY 13 A Units Purchased (MU) 11,423 11,658 11,884 B Fixed Cost (Rs. Crs.) 1,144 1,144 1,144 C Variable Cost (Rs. Crs.) 1,450 1,605 1,772 D=B+C Total Power Purchase Cost (Rs. Crs.) 2,593 2,749 2,916 E=D*10/A Rate of Power Purchase (Rs. / kwh) F Inter State Transmission Cost (Rs. Crs.) G=D+F Total Power Purchase Cost (Rs. Crs.) 2,646 2,802 2,969 H=G*10/A Rate of Power Purchase (Rs. / kwh) I Intra State Transmission Cost - MPTransco (Rs. Crs.) J=H+I Grand Total of Power Purchase Cost (Rs. Crs.) 3,058 3,269 3,436 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 69

70 A7: O&M EXPENSES 7.1 The O&M expenses are to be allowed as per norms provided in the Commission s regulations. However, the licensee presents below the basis for projection of actual O&M expenses. Employee Expenses 7.2 The entire employee expense is bifurcated into several cost components. The components and the basis of projections are as below: (a) (b) (c) (d) (e) (f) (g) (h) Basic salary: The new Sixth Pay Commission norms have been considered in estimating the salary. The salary per employee is first calculated using the new sixth pay-commission norms and based on the future retirement and recruitment schedule, the salary is forecasted for the future. Dearness Allowance: A conservative estimate of dearness allowance would result in an annual increment of 8%. The dearness allowance is incremented every six months based on the benchmarks set by the Central Government. Other Allowances: The other allowances figure is linked to approved inflation rate of 6.14% annually. Bonus / Ex-Gratia/Productive Incentives: The bonus figure is linked to the average annual inflation rate of 6.14% annually. Payments to board employees: The average cost incurred in the last three years is taken to project the future figures with an inflation rate of 6.14% annually. Medical Reimbursement: The medical expenses is forecasted based on the last three years average of actual medical expense incurred, however the effect of average number of employees working in the company, each year is considered and the expenses are also linked to an inflation rate of 6.14%. Training Fees, Workmen's Compensation Payment, Tuition Fee Reimbursement: The tuition fee reimbursement is considered taking the average of the 3 years actual reimbursement. The expense is however considered to be linked to an inflation rate of 6.14% per annum. Staff Welfare Expenses, Concessional Electricity: The actual expense incurred last year per employee is considered to project the cost for the future based on the retirement and recruitment plan. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 70

71 (i) (j) (k) (l) (m) (n) (o) Earned Leave Encashment: The average days of EL encashed per employee is assumed to be 180 days. The actual number of working days per year is considered to be 240 and based on the retirement schedule the encashment amount is calculated. Terminal & Post Retirement Benefits: The last years settlement fee per employee is considered to project the terminal and post retirement benefits. The retirement schedule for future years is also accounted for to calculate the actual amount. Gratuity: The gratuity payment is considered using the actual figure for the past three years per working employee. Pension: The actual increase in the pension payment per retiring employee is considered to project the pension expense. Contribution towards Terminal Benefits Trust Fund: As per GOMP Terminal Benefit Fund Rules, the rate of future Employer monthly contribution, based on actuarial valuation as on March 31, 2003 for East Discom shall be and of the future eligible salary. Accordingly, the licensee has projected the expenditure under this head. Annuity, Provident fund inspection and audit charges, Compensatory Payment, Employee Cost - Other Credits: These expenses are forecasted based on the actual average for the last three years and inflated at a rate of 6.14% per annum. Arrears: Using the sixth pay-commission norms, the total arrears are calculated and the total arrears are distributed over the next three years. Table 101: Employee expenses Particulars MYT to Employee Strength FY11 FY12 FY13 Working Strength At The Beginning Of The Year 13,705 13,859 13,940 Employee's Cost (Other Than Covered In 'C'&'D') Salaries Additional Pay D.A Other Allowances & Relief Addl. Pay & C.Off Encashment Sub-Total: (1 to 5) Medical Expenses Reimbursement Travelling Allowance(Conveyance Allowance) Leave Travel Assistance Honorarium/Overtime Incentives/Awards Including That In Partnership Project (Specify Items) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 71

72 Particulars MYT to FY11 FY12 FY13 Earned Leave Encashment Tution Fee Re-Imbursement D.L.I. Board'S Contribution E.D.L.I. Administration Charges E.S.I. Board'S Contribution E.S.I. Administration Charges Payment Under Workman'S Compensation And Gratuity Subsidised Electricity To Employees Any Other Item Interim Relief / Wage Revision (10%) Sub-Total (7 to 21) Staff Welfare Expenses Apprentice And Other Training Expenses Payment/Contribution To PF Staff Pension And Gratuity Terminal Benefits a) Provident Fund Contribution b) Provision for PF Fund c) Pension Payments d) Gratuity Payment Any Other Items Contribution towards Pension Trust (Acturial Valuation-2003) Contribution towards Gratuity (Acturial Valuation-2003) Total D Grand Total [B.6 + B.22 + B.23 + C + D] Bonus/Exgratia To Employees Grand Total Employee expenses capitalised Net Employee expenses (F)-(G) Relevant Indices Of Wages Increase (As At The Beginning & End Of The Year) WPI(Calander Year) CPI(Calander Year) 6.14% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 72

73 Repair and Maintenance Cost 7.3 The repair and maintenance cost is generally considered to be dependant on the Gross Fixed Assets. The total R&M expense is then bifurcated into the respective sub-categories based on the previous 3 years share of the sub- category in the total R&M Expense. The projection of R&M expenses based on past years data is presented in the table below: Table 102: Repair and Maintenance expenses Particulars MYT to Figure in Rs Crore FY11 FY12 FY13 Plant and Machinery - 33kV substation - 11kV substation - Switchgear and cable connections - Others Building Civil Works Hydraulic Works Lines, Cables Net Works etc. - 33kV lines - 11kV lines - LT lines - Others Vehicles Furniture and Fixtures Office Equipments Station Supplies Any other items Gross R&M expenses R&M expenses capitalised Net R&M expenses M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 73

74 Administrative and General Expenses 7.4 Rent, Rates & Taxes, Insurances, Electricity Charges (Office), Hot Weather Establishments: The rent, insurance related expenses, electricity charges for offices and hot weather establishments is forecasted based on the Gross Fixed Asset. The base figure was calculated by considering the average rent and insurance expenses as a proportion of the GFA. 7.5 Revenue stamp Expenses: The expense incurred is forecasted by considering the actual Year- On-Year escalation rate of the revenue stamp expenses. 7.6 Telephone Charges, Postage, and Telegram and Telex Charges, Printing & Stationery, Merchandising, Servicing & Contract Work, Other Purchase related expenses, Conveyance & Travelling Expenses: These expenses are considered on the basis of actual revenues for the year. The base figure for forecasting is by calculating the average of the ratio of these expense heads to the revenue for last 3 years. 7.7 Other Expenses: All the other Expenses are linked directly to the inflation rate of 6.14% per year. Mostly the base figure is considered by taking the average of the expense for last three years and applying proper inflation to forecast future expenses. Table 103: Administration and General expenses Particulars MYT to In Rs Crores FY11 FY12 FY13 Administration Expenses Rent rates and taxes Rent Rates & Taxes Sub - total of Rent rates and taxes Insurance Revenue Stamp Expenses Account Telephone,Postage,Telegram & Telex Charges Incentive & Award To Employees/Outsiders Consultancy Charges Technical Fees Other Professional Charges Conveyance And Travel MPERC License fee Sub-Total of Admistrative Expenses Other Charges Fee And Subscriptions Books And Periodicals Printing And Stationery Advertisement Expenses (Other Than Purchase Related) Exhibition & Demo M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 74

75 Particulars MYT to In Rs Crores FY11 FY12 FY13 Contributions/Donations To Outside Institute / Association Electricity Charges To Offices Water Charges Entertainment Charges Miscellaneous Expenses Sub-Total of other charges Legal Charges Auditor's Fee Sub Total of Material related expenses Direction And Supervision Charges Total Charges A&G expenses capitalised Net A&G expenses M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 75

76 A8: CAPITAL INVESTMENT PLAN Investments 8.1 The five year investment plan submitted by the Licensee to the Hon'ble Commission has been adopted for the ARR petition with modifications based on the progress achieved in the last year and revised investment expectations for the subsequent years. The summary of the revised estimated investment plan is presented below: Table 104: Investment plan (Rs. Crs.) Schemes FY10 FY11 FY12 FY13 ADB ST(N) HUDCO RGGVY TSP SCSP JBIC Kisan Maha Panchayat (New AG Pump Sets) Feeder Segregation APDRP-I APDRP-II Deposits Capital expenditure for new connections funded through consumer contribution has been included as New Connection Deposit. The consumer contribution figure has 80% of share contributed by East Discom and the rest 20% by the consumers. 8.3 The APDRP-II consists investment plan for RAPDRP Part (a) which is already been sanctioned and for RAPDRP Part (b) which has not been sanctioned yet. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 76

77 Financing Plan 8.4 Detailed scheme-wise financing plan is submitted in Format F2b. The following is the summary of the scheme-wise financing sources for the above proposed investment plan. Table 105: Financing plan Schemes PFC JBIC REC ADB SBI- CPF HUDCO GoMP/GoI Consum er Contribu tion EZ Share ADB 68% 22% 10% ST(N) 100% HUDCO 90% 10% RGGVY 10% 90% GoMP (TSP) 100% GoMP (SCSP) 100% JBIC 87% 13% KMP 100% Feeder 100% Segregation R-APDRP 50% 50% New Connection Deposit 20% 80% Capitalization 8.5 The Licensee has inherited a CWIP of Rs.529 Crs. CWIP as on 31st March 2008 and is as per the Audited Accounts for the period FY For the projection period, the capitalization has been assumed as follows: (a) (b) (c) It is assumed that around achievement of the total investment plan on a yearly basis would be as follows 50% (FY10), 60% (FY 11), 70% (FY 12) and 80% (FY13). The entire realized investments for a year is added to the opening CWIP to obtain the CWIP for the year. The capitalization rate is considered also considered in the same ratio as investment achievement i.e. 50% (FY10), 60% (FY 11), 70% (FY 12) and 80% (FY13). Expenses are capitalized at different rates based on their past trend. The R&M expense is capitalized at a rate of 1% while employee expense is capitalized at a rate of 3% M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 77

78 Table 106: Capitalization plan (Rs. Crs.) Particulars CY MYT to FY10 FY11 FY12 FY13 Opening Balance Additions during the year , Interest Charge Revenue Expenses Pending Advance to Suppliers and capital Less Liabilities for suppliers and capital less: Conversion to FA , , Closing CWIP Average CWIP M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 78

79 A9: DEPRECIATION 9.1 The Licensee has inherited Opening GFA of Rs Crs. as per the Audited Balance Sheet for FY 09. The capitalization of CWIP is transferred to the fixed assets as new asset additions for the year. It is expected that the addition to GFA during FY 10 to FY 13 would be Rs Crs., Rs Crs., Rs Crs. and Rs Crs. respectively. Accumulated depreciation during FY 10 to FY 13 would be Rs Crs, Rs Crs., Rs Crs and Rs Crs. respectively. The salient premises adopted for the projection of depreciation for FY 10 are: 9.2 The period the opening balance of the depreciable assets (assets not depreciated up to 90%) for each year of the projection period has been estimated based on the year-wise asset addition data of MPSEB from to under each account head. A summary of the estimated % depreciable assets (opening balance) for the projection period is presented below. (a) The depreciation rate that have been adopted for the depreciation calculation is as per the MoP notification (notified under S.O.265 (E) dated 27th March, 1994 by the Central Government) which is also being used in the preparation of the annual accounts of the licensee. The Company requests the Commission to consider MoP rates as depreciation rates applicable for a Transmission Licensee for distribution Licensee also. The depreciation during the year so worked out for FY 11 and FY 13 is shown below: Table 107: Depreciation FY10 FY11 FY12 FY13 Land & Land rights Building and Civil Works Hydraulic Works Other Civil Works Plant & Machinery Line Cable Networks etc Vehicles Furniture & fixtures Office Equipments Total Net depreciation (14-15) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 79

80 A10: INTEREST AND FINANCE CHARGES Interest on Project Loans 10.1 The details of calculations for calculation of interest and finance charges are explained below. The scheme wise detail has been presented in the tariff formats as annexures. (a) (b) (c) The MPSEB Generic Loan transferred through the provisional balance sheet as on have been now bifurcated into their respective heads and re-casted into separate accounts. The interest and repayment of the loans is based on the respective repayment schedule of the loans and the interest. The additions of the new loans are considered in tandem with the investment plan to reflect the actual cash inflows funding the projects. Table 108: Interest on Project Loans Particulars MYT to In Rs Crores FY11 FY12 FY13 Interest charges on State Govt. Loans, Bonds And Advances Interest charges on loans from the State Government Interest charges on Bonds Interest charges on Foreign Currency Loans / Credits Interest charges on debentures Total of I Interest on Long Term Loans / Credits from the FIs/banks/organisations approved by the State Government ADB Bank Commission Secured PFC- RTL PFC STL HUDCO ADB (2324 IND) ADB (2347 IND) Loan from SBI Loan from REC-RGGVY Loan from REC-JBIC MPSEB Generic Loan (Bifurcated in FY 09) New Loans ADB Counterpartfunding M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 80

81 Particulars MYT to In Rs Crores FY11 FY12 FY13 RAPDRP-PFC RAPDRP II Un-secured REC APDRP Loan PMGY Loan MNP Loan NABARD Market Loan EAP (ADB) Total of II Total of A : I + II Cost of raising finance & Bank Charges on project loans Grand Total Of Interest & Finance Charges: A + B Less: Interest & Finance Charges Chargeable to Capital Account Net Total Of Interest & Finance Charges on Project Loans C-D Interest and Finance Charges on Working Capital Loans Interest on Consumer Security Deposit Interest at weighted average rate of loan portfolio on excess additional equity, if any** Total interest and finance charges chargeable to revenue account (E+F+G+H) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 81

82 A11: INTEREST ON WORKING CAPITAL 11.1 The working capital requirement has been estimated based on the norms as per the Regulation as under. Interest rate of 13.75%, which is presently the lowest PLR rate among the top five Indian banks as per the Monthly Economic Report for November 2009 issued by the Ministry of Finance, the has been assumed for the calculation of the Interest on the working capital Table 109: Interest on working capital Sl. No. Particulars CY MYT to FY10 FY11 FY12 FY13 A) 1/6th of annual requirement of inventory for previous year B) O&M expenses R&M expenses A&G expense Employee expenses B) i) Total of O&M expenses B) ii) 1/12th of total C) Receivables C) i) Annual Revenue from wheeling charges** C) ii) Receivables equivalent to 2 months average billing of wheeling charges D) Total Working capital (A), B) ii), C) ii)) E) Rate of Interest * 13.75% 13.75% 13.75% 13.75% F) Interest on Working capital M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 82

83 A12: OTHER COSTS Other Income 12.1 The main components of Non-Tariff Income are sale of surplus contracted power, meter rent and miscellaneous charges from consumers. Meter rent and miscellaneous charges have been projected as % of tariff income. Table 110: Other Income Particulars CY MYT to Figure in Rs Crore FY10 FY11 FY12 FY13 A B Income from Investment, Fixed & Call Deposits 1 Interest Income from Investments Interest on fixed deposits 3 Interest from Banks other than Fixed Deposits Interest on (any other items) Sub-Total Other Non Tariff Income 1 Interest on loans and Advances to staff Interest on Loans and Advances to Licensee 3 Interest on Loans and Advances to Lessors 4 Interest on Advances to Suppliers / Contractors 7 Income/Fee/Collection against staff welfare activities 8 Miscellaneous receipts Meter Rent Recovery from theft of energy 11 Surcharge and Additional Surcharge 12 Incentive due to Securitisation of CPSU Dues 13 Misc. charges from consumers Delayed payment surcharge from Retail Sale consumers 15 Any other subsidies / grants other than those u/s 65 Sub-Total Total (A+B) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 83

84 Return on Equity 12.2 The RoE for the period has been calculated as per the regulations as per the computation suggested in the ARR Formats: Table 111: Return on Equity Sl.No. Particulars CY MYT to FY10 FY11 FY12 FY13 A Gross Fixed Assets at the beginning of year (net of consumer 1, , , , contributions) A1 Opening balance of GFA identified as funded through equity , A2 Opening balance of GFA identified as funded through debt 1, , , , B Proposed capitalisation of assets as per the investment plan (net of consumer contribution) , , B1 Proportion of caplitalised assets funded out of equity, internal reserves B2 Balance Proportion of capitalised assets funded out of project loans (B - B1) , C1 Normative additional equity (30% of B) C2 Normative additional debt (70% of B) D1 Excess / shortfall of additional equity over normative (B1-C1) (199.09) D2 Excess / shortfall of additional debt over normative (B2-C2) (19.99) (83.53) (27.22) E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever is , , lower Return on Equity (16% on E) Bad and Doubtful Debts 12.3 The table below provides details of bad debts Table 112: Bad and Doubtful Debts Sl.No. Particulars MYT to FY11 FY12 FY13 Provision for Bad Debts Amortization of FY 08 and FY 09 gap 12.4 The revenue gap for FY-08 and FY-09 has been worked out to be Rs Crore. and Rs Crs as per True-Up. The revenue gap of both these years is proposed to be amortized over three years from FY-11 to FY-13. Further an amount of Rs Crore for FY 06 true-up of power purchase cost has also been claimed during the year FY 11. The claim for true-up for FY07 has not been made as the matter is subjudice before the Hon ble Appellate Tribunal. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 84

85 A13: ANNUAL REVENUE REQUIREMENT Summary for East Discom Table 113: P&L statement for East Discom Particulars MYT to FY11 FY12 FY13 A B Revenue 1 Revenue from sale of power (Inclusive of tariff subsidy) 2, , , Other income (excluding DPS) Income from other business allocated to Licensed business Total Revenue or Income 2, , , Expenditure 1 Purchase of Power from all sources 2, , , Inter-State Transmission charges Intra-State Transmission (MP Transco) Charges Repairs and Maintenance Employee costs Administration and General expenses Net prior period credit charges 9 Other Debits, Write-offs Lease Rental 11 Extraordinary items (4.04) (4.04) (4.04) 12 Bad and Doubtfuls Debts Less: Expenses Capitalized P. P Expenditure Reserved by MPERC in its True up Order for FY Amortization of FY 08 gap Amortization of FY 09 gap C PBDIT (1,816.11) (1,773.53) (1,782.15) D Depreciation and Related debits E PBIT (1,984.98) (2,001.67) (2,053.42) 1 Interest & Finance Charges Less: Interest Capitalized F Total Interest and Finance Charges G TOTAL EXPENDITURE 4, , , H Profit/Loss before Tax (2,100.18) (2,163.64) (2,242.71) I Income Tax J Profit/Loss after Tax (Before RoE) (2,100.18) (2,163.64) (2,242.71) K RoE L Profit/Loss after Tax (After RoE) (2,223.75) (2,350.42) (2,471.63) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 85

86 Segregation of ARR 13.1 The licensee has endeavoured to segregate the ARR for various functions, namely, Power Purchase, Distribution function and Retail Supply function. The tables below provide summary of ARR for the three functions identified above. Table 114: Segregation of ARR Aggregate Revenue Requirement for Distribution and Retail Sale All figures in Rs Crores Particulars MYT to Power Purchase expenses, including Inter-State and Intra-State Transmission charges and wheeling charges payable to any other Distribution Licensee FY11 FY12 FY13 3, , , Aggregate Revenue Requirement of Wheeling Activity Aggregate Revenue Requirement of Retail Sale Activity Total Aggregate Revenue Requirement for Distribution and Retail Sale (I+II+III) 4, , , Aggregate Revenue Requirement for Expenses related to Purchase of power - I All figures in Rs Crores Particulars MYT to FY11 FY12 FY13 Power Purchase or Energy Available (MU) Sale of Power (MU) Loss % 32.50% 28.50% 24.00% Expenditure Cost of power purchase, including T&D losses 2, , , Inter-State Transmission charges Intra-state Transmission (MP Transco) charges Wheeling charges payable to other distribution licensee SLDC fees and charges Any other expenses* Total expenditure on power purchase 3, , , Aggregate Revenue Requirement For Wheeling activity - II All figures in Rs Crores Particulars MYT to FY11 FY12 FY13 A Expenditure R&M Expense Employee Expenses A&G Expense Depreciation Interest & Finance Charges on project loans M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 86

87 Aggregate Revenue Requirement For Wheeling activity - II All figures in Rs Crores Particulars MYT to FY11 FY12 FY13 Interest and Finance Charges on working capital loans Lease Rental Any other expenses* Return on Equity Extraordinary Expenses B Less: Other Income (inclusive of income from wheeling charges) Annual Revenue Requirement (A-B) Aggregate Revenue Requirement For Retail Sale activity - III All figures in Rs Crores Particulars MYT to FY11 FY12 FY13 A Expenditure R&M Expense Employee Expenses A&G Expense Depreciation Interest & Finance Charges on project loans Interest and Finance Charges on working capital loans Interest and Finance Charges on Consumer Security Deposit Bad and Doubtful debts Any other expenses* Return on Equity B Less Other Income Income from other business allocated to Licensed business Annual Revenue Requirement (A-B) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 87

88 A14: OTHER ITEMS Fuel Surcharge Adjustment 14.1 At present there is no mechanism for automatic pass-through of the enhanced costs for the Discomdue to unforseen.circumstances beyond the control of Discom. Thus even though generating and transmission utilities pass their uncontrollable cost, the Discom is not able to pass on the same to its consumers. This is especially the power purchase cost which represents the most substantial part of Distribution Licensee's revenue requirement. Any material changes in hydro-thermal mix, generation source mix; fuel cost etc has a significant impact on the power purchase cost for the Distribution Licensee. Given the extent of the costs involved, it is crucial that a mechanism is formulated whereby the distribution Licensee is able to regularly recover allowable changes in the power purchase cost, on account of variation in fuel costs, from consumers. Such a mechanism would enable the Distribution Licensee to manage its functions in a more effective manner. This is also in line with the provisions of Clause 5.3 (h) (4) of the National Tariff Policy which reads that "Uncontrollable costs should be recovered speedily to ensure that future consumers are not burdened with past costs. Uncontrollable costs would include (but not limited to) fuel costs, costs on account of inflation, taxes and cess, variations in power purchase unit costs including on account of hydro-thermal mix in case of adverse natural events " In line with the above provision, the Distribution Licensee submits the following formula for computation of Fuel Surcharge Adjustment: (a) (b) (c) (d) (e) (f) FSA (Rs crores) = P + I + A, Where FSA = Fuel Surcharge Adjustment P = Change in cost of generation and power purchase due to variation in the landed fuel cost and due to approved short term power purchase I = Interest on working capital on account of change in fuel cost on account of factor 'P' above A = Adjustment factor for over-recovery / under-recovery which shall be computed in accordance with the formula given below: AJ-2 (Rs. Crores) = XJ-4 + YJ-2 Where: (g) XJ-4 : Incremental cost in month "J-4" (h) YJ-2 : Incremental cost in month "J-4" actually recovered in month "J-2" (i) (j) The calculation for FSA to be charged for the month "J" shall be as follows: FSAJ (Rs crores) = PJ-2 + I J-2 + AJ-2 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 88

89 14.3 The FSA would be applicable from the month following the month in which the additional costs are calculated. (This means that the FSA for month of June would be recovered in August.) 14.4 The Licensee proposes that the FSA shall be recoverable from both metered as well as unmetered consumer categories as indicated in the formula below: 14.5 FSA Rs./kWh = (FSA / (Metered sales + Unmetered consumption estimates)) * The consumption for unmetered category consumers would be estimated based on methodology and norms adopted for the same for developing sales forecast for such categories The need for adjustment factor 'A' as mentioned in the above formula would be clear with help of an example: 14.8 Consider that a Distribution Licensee has incurred a higher power purchase cost, of say Rs 10 Crores for month of April on account of higher fuel prices. The licensee would have been served with corresponding power purchase bill by supplier/generator in month of May and it is assumed that the entire cost is allowed by the Commission to be recovered through FSA. If the anticipated sale during the month of June is 500MU, then the FSA per unit to be recovered would be 20 paise/kwh. Now if the actual sale for June is 450MU, then there would be an under-recovery to the extent of Rs 1 Crores. Conversely, if the actual sale for June is 550MU, then there would be an over-recovery of Rs 1 Crores. Therefore, there is a need for the FSA formula to provide for regular adjustments on account of such over recovery/under recovery. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 89

90 Expensive Power Charges 14.9 All Power purchases are undertaken by the licensee through the MP Tradeco. The MP Tradeco arranges the power for three Distribution co s of the state viz, East, Central and West Discom. Also, apart from entering into contract for purchase of power from various sources, MP Tradeco has also entered into arrangement of banking of power under which the power is sold in kind and is returned in kind at a later date or vice-versa. The licensee generally avoids the load shedding of HT consumers and LT consumers of Commissionary and Distt. HQ. Therefore, in case of unforeseen shortage of power, the licensee is compelled to manage the power supply to these categories of consumers by arranging expensive power. Moreover, vide para 40.1(j) of the instant MYT regulation, the Hon ble Commission has provided that it may consider to prescribe additional charges on account of procurement of costly power. In effect, through this regulation, the H ble Commission has contemplated a distinction between the cost of long-term power and short-term power(i.e. expensive power) from the point of view of tariff determination. Therefore, licensee proposes that the additional cost of expensive power is allowed to be recovered from HT consumer and LT consumer of Commissionary/Distt. HQ. Since the LT loss level of different area is different, therefore it will be appropriate to recover the cost of expensive power from LT consumers of Distt. H.Q. in proportion to their requirement in the following manner. Formula:- Net energy requirement R1 MU with cost C1 Availability from identified sources R2 MU with cost C2 Difference (R2-R1) MU Partially/fully power arrange from short term sources (For supplying power to HT consumer and LT consumer of CHQ and DHQ) R3 MU with cost C3 i.e. (R3/(H1+L1) percentage of total requirement) Power requirement to HT Consumer H1 (Incorporating 1.5% distribution loss, 4.9% Transmission lossess, and 2% external losses) Power requirement to LT Consumer of CHQ/DHQ L1 (Incorporating actual distribution loss of the area, 4.9% Transmission lossess, and 2% external losses) Expensive power arranged to HT consumer H1 X (R3/(H1+L1)%) Expensive power arranged to LT consumer of CHQ/DHQ L1 X (R3/(H1+L1)%) Difference of Expensive Power Cost per unit (D1) = (C3/R3) (C1/R1) Qty in MU Total Cost Expensive power charges HT Consumer H1X(R3/(H1+L1)%) H1X(R3/(H1+L1)%)X D1 {H1X(R3/(H1+L1)%)XD1}/HT Sale M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 90

91 LT Consumer L1X(R3/(H1+L1)%) L1X(R3/(H1+L1)%)X D1 {L1X(R3/(H1+L1)%)XD1}/HT Sale Example Consider that the commission has allowed the requirement of 275 MU with an average power purchase 2.00 Rs. Per unit for the month of April. In case of shortage in availability, Distribution Licensee has arranged expensive power purchase of 20 MU from short term sources at average rate Rs Per unit to meet out the requirement of HT consumer and LT consumer of CHQ and DHQ. The licensee would have been served with corresponding power purchase bill by supplier/generator in month of May and it is assumed that the entire cost is allowed by the Commission to be recovered through EPC. If the sale during the month of April for HT consumer was 100 MU and LT consumer of CHQ and DHQ was 45 MU, then the EPC per unit to be recovered would be calculated as under:- Power requirement for HT consumer [{100/(1-1.5%)}/(1-4.9%)]/(1-2%) = MU Power requirement for LT consumer for DHQ/CHQ say 35.5% Distribution loss [{45/(1-35.5%)}/(1-4.9%)]/(1-2%) = 75 MU Total power requirement for HT and LT consumer of DHQ/CHQ = = MU Percentage of Expensive power purchase in the month (20/183.55) % =11% Expensive power arrange to HT consumer = X11% = MU Expensive power arrange to LT consumer of DHQ/CHQ= 75X11% = 8.06 MU Additional cost towards expensive power to HT consumers = 11.94X ( ) =5.06 crores Per unit Expensive charges to be recovered from HT consumer in the monthly bill of June = 5.06/100= Rs per unit Additional cost towards expensive power to LT consumers of CHQ/DHQ=8.06X( ) =3.42 crores Per unit Expensive charges to be recovered from LT consumer of CHQ/DHQ in the monthly bill of June = 3.42/45 = Rs per unit M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 91

92 Depreciation Clause 2.16 of the Regulation provides that "For the purpose of tariff, depreciation shall be computed in the following manner: (a) The asset base for the purpose of depreciation shall be the historical cost of the assets, i.e. actual expenses limited to approved /accepted capital cost: provided that the consumer contribution or capital subsidy/ grant etc shall be treated as per the accounting rules notified and in force from time to time. (c) Depreciation rates for determination of allowable depreciation shall be as notified by the CERC from time to time To enable the Commission to validate the Licensee's depreciation claims, year wise and category wise (as defined by CERC) additions to assets must be provided by the licensee. " Further, Clause 2.19 provides that "Depreciation shall be chargeable from the first year of operation. In case of operation of the asset for part of the year, depreciation shall be charged on pro-rata basis. " Therefore, three key issues need to be addressed: (a) (b) (c) Issue 1 - The asset base on which depreciation need to be allowed and whether assets created by consumer contribution or capital subsidy/ grant etc. are eligible for depreciation; Issue 2 - The rate of depreciation to be charged; and Issue 3 - When to start charging depreciation and whether any change in accounting policy is required to be undertaken. On Issue 2 about depreciation rates to be adopted, the licensee submits that the National Tariff Policy under Section 5.3(c) states that "The Central Commission may notify the rates of depreciation in respect of generation and transmission assets. The depreciation rates so notified would also be applicable for distribution with appropriate modification as may be evolved by the Forum of Regulators. The rates of depreciation so notified would be applicable for the purpose of tariffs as well as accounting. There should be no need for any advance against depreciation." M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 92

93 From the above it is seen that the CERC and Forum of Regulators (FOR) is required to evolve a set of depreciation rates in a manner that there should be no need for any advance against depreciation and the cash requirement (for debt servicing) of licensees in a regulated regime is addressed through depreciation. The present CERC notified rates are nearly half of the rates being adopted for accounting purpose and is inadequate to meet the loan repayment obligations of the licensee. Further, if the licensee adopts the present CERC notified rates for the purpose of tariffs, it will have to change the rates to be used for accounting also as it is currently following the rates notified under S.O.265 (E) dated 27th March, 1994 by the Central Government. In near future, when CERC and FOR comes up with the revised rates, the licensee will again have to undertake a change in its accounts as well as ARR/ Tariff filings. Therefore, in order to meet the cash requirements and also to avoid multiple changes in accounting policies, it is submitted that till the time CERC/ FOR comes up with revised depreciation rates for distribution business, the licensee may be allowed to continue the use of the MoP notified rates for both accounting and tariff purpose. On Issue 3, the licensee submits that adopting the Regulation would require a change in accounting policy. As per the AS - 6 "Depreciation Accounting" issued by the ICAI, para 15 of the explanation " A change from one method of providing depreciation to another is made only if the adoption of the new method is required by statute or for compliance with an accounting standard or if it is considered that the change would result in a more appropriate preparation or presentation of the financial statements of the enterprise. When such a change in the method of depreciation is made, depreciation is recalculated in accordance with the new method from the date of the asset coming into use. The deficiency or surplus arising from retrospective recomputation of depreciation in accordance with the new method is adjusted in the accounts in the year in which the method of depreciation is changed.." Therefore, in line with the reasoning provided on Issue 2, and the complexities involved in compliance with the mandatory Accounting standard - 6 on Depreciation Accounting it may be desirable to wait for the CERC and FOR determined rates and process for charging depreciation to emerge before changing the policy for both accounting and tariff purpose. The other issue of when to charge depreciation: As mentioned above the company is following the methodology of depreciation as prescribed under ESAAR, 1985 as per which the depreciation is charged on the opening balance of the Gross fixed Asset and not on the assets capitalised during the financial year as required under the Companies Act, 1956 or as stated in the Regulations. However, the Company is in the process of complying with the methodology prescribed under the Regulation to charge proportionate depreciation for the Assets capitalised during the financial year.keeping these issues in view, the licensee has continued with the methodology prescribed in ESAAR, 1985 while assessing the depreciation requirement and seeks the indulgence of the Hon'ble Commission in this regard till CERC and FOR comes up with the revised depreciation rates and methodology. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 93

94 A15: TARIFF PROPOSAL 15.1 The Hon ble Commission has issued the tariff order for on 31 st March 2006, tariff order for on 30 th March 07, tariff order for on 29 th March 2008 and tariff order for FY on 29 th July The Gist of the Tariff Hike for East Discom is as under:- SN Particular Approved Sales (MU) Revenue at Existing Tariff (Rs. In Crores) Revenue at Revised Tariff (Rs. In Crores) Additional Revenue on account of revision of Tariff (Rs. In Crores) 5 % Tariff Hike (overall basis) 3.42% 0.25% 2.71% 3.16% 6 Average Revised per unit Tariff (Rs.) ( Revenue at revised tariff/approved Sale) The annualized variation in the wholesale price index of India in the year was 4.4%, in the year was 5.4%, in the year was 4.7%, in the year was 5.69% and for the year till September it has been fluctuating between 4.5% to 6.5%. It is quite apparent from the figures indicated that, the Tariff hikes during these years were not at all commensurate with the rise in wholesale price index, which has severely affected the financial health of the Discom. The Discom has started finding it extremely hard to sustain the multiple onslaughts of intrinsic rise in expenditure due to inflationary pressures, relentless and consistent rise in power and energy demands, rather unrealistic normative constraints imposed by the Regulator, rapidly falling credit rating in the market, obligations to be met under the policy objectives of the State and Central governments. Therefore, it has now become expedient for the licensee to seek an appropriate hike in the tariff - i.e., to the level as proposed and detailed in the instant petition. It would just not be possible for the Discom either to maintain its operational viability or, to operate efficiently, at the least, without the enhancement in the retail tariff sought through this petition In view of the facts outlined, the East Discom has proposed a minimal tariff hike which translates in monetary terms to Rs crore. The ARR for the year is Rs Crores and revenue at existing Tariff works out to Rs crores resulting into the Gap of Rs Crore It is to mention here that this Gap includes only 1/3 rd of the True-up Cost for the year & The average Cost of Supply for FY11 will be Rs per unit. On account of the proposed tariff, the additional revenue of Rs crore generated and minimizes the gap to Rs crores. In order to reduce the burden on the consumers during FY11, the licensee proposes that the unrecovered gap be treated as Regulatory Asset and be amortised over a period of 5 years starting from FY12. The Licensee has not sought funding cost for the unrecovered gap which it proposes to do at the time of truing up The schedule of the proposed Retail Tariff for FY is enclosed with this petition. The National tariff Policy requires that by the end of , the tariff for all consumers should be with in +/-20% of the average cost of supply. The average Cost of supply for the year for East Discom will be Rs per unit, but the minimum average tariff is proposed as Rs per unit. While designing the tariff, the licensee has made efforts to maintain M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 94

95 the Cross subsidy within limit and reduces the same as compared to the previous year The tariff proposals for FY11 are annexed. The impact on revenue due to proposed tariff is given in the table below: Code Category Sales (MU) Total Revenue at Current Tariff (Rs. Crs.) Total Revenue at Proposed Tariff (Rs. Crs.) Impact (Rs. Crs.) Increase in Revenue / (-) Decrease in Revenue LV -1 DOMESTIC CASES 1, LV-2 NON-DOMESTIC LV -3 PUBLIC WW/STLT LV-4 INDUSTRY L.T LV-5 IRR. & AGR USE 1, LV-5.2 Agriculture related use in rural areas LT Total 4, , , HV-1 RAILWAY TRACT HV-2 COAL MINES HV-3 INDUSTRIAL HT 1, HV-4 SEASONAL H.T HV-5 HT IRRIGATION HV-6 BULK RESIDENTIAL USER HV-7 Bulk Supply to Exemptees (50.40) HT Total 3, , , Grand Total 7, , , M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 95

96 15.6 The comparison of average rate per unit for different categories of consumer with percentage from overall average tariff for the year as per tariff order and for the year as per proposed tariff is as under: ARPU at Exiting Tariff ARPU at Proposed Tariff % Hike in ARPU Proposed ARPU as a % of Acos Proposed ARPU as a % of Average Tariff LT Consumer Categories Rs/ Unit Rs/ Unit (%) (%) (%) LV-1: Domestic Consumers % 59.21% 87.57% LV-2: Non Domestic % % % LV-3: Public Water Works and Street Light % 64.65% 95.61% LV-4: Industrial % 75.99% % LV-5.1 Pumps for Irrigation % 54.13% 80.06% LV-5.2 Agriculture related use in rural areas Total LT Sale % 62.23% 92.03% HT Consumer Categories HV-1: Railway Traction % 88.42% % HV-2: Coal Mines % 87.03% % HV-3: Industrial and Non-industrial % 83.43% % HV-4: Seasonal % 98.71% % HV-5: Irrigation and Public Water Works % 74.13% % HV-6: Bulk Residential % 68.07% % HV-7: Bulk Supply to Exemptees % 35.19% 52.04% Total HT Sale % 75.15% % Total LT + HT Sale % 67.62% % 15.7 It could be seen from the above table that the licensee has tried to reduces the cross subsidy for the cross subsidising categories of the consumers as compared to previous year. The licensee has proposed the reduction in the tariff for RE Cooperative Society considering their paying capacity as its business is well known to the licensee. It is understood, that, the income accrued to the R.E. Cooperative Societies from sale of power is not at all par with the revenue demand raised by the licensee for the H.T. connections of the said Societies. Therefore, the Societies are not in a position to meet there own expenses leave aside paying the licensees dues- which are, inevitably, being piled up against the Societies. Looking at the circumstances which seem positively beyond redemption and repair, tariff reduction for the R.E. Cooperative Societies has been proposed to minimize the quantum of hypothetical and unrealizable revenue accrual appearing in the licensee s balance-sheets which adversely affects its cash flows and financial health. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 96

97 15.8 Consumer Category wise comparison of the existing and proposed tariff is given in the table below: (A) LT Tariff Schedule (1) Domestic LV 1 PROPOSED EXISTING Energy Energy Fixed Cost Minimum Fixed Cost Fixed Cost Minimum Fixed Cost Categories Sub Category Cost Cost Charge Charge Charge Charge Charge Charge Charge Charge Load based Connection Connection Rs/KW/Month Connection Connection Rs/KW/Month DOMESTIC Based Based Rs/unit or Based Based Rs/unit or (Rs./Month) (Rs./Month) Rs/Hp/Month (Rs./Month) (Rs./Month) Rs/Hp/Month GENERAL CASES TEMPORARY (for construction of own house) TEMPORARY (for social/marriage/religious function) 0-30 UNITS (Urban) UNITS (Rural) UNITS (Urban) UNITS (Rural)) UNITS (Urban) UNITS (Rural) Above UNITS (Urban) Above UNITS (Rural) Above 200 UNITS (Urban) Above 200 UNITS (Rural) Through DTR Meter DEMAND Yearly BASE (Urban) U/kW 4.00 DEMAND Yearly BASE (Rural) U/kW 4.00 TEMPORARY (Urban) TEMPORARY (Rural) TEMPORARY (Urban) TEMPORARY (Rural) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 97

98 Highlight:- 1. The Fixed charges and Minimum Charges for consumers on declared rural feeders are proposed as 50% of Normal Charges. 2. It is proposed to introduce Demand Based Tariff. The demand based tariff is proposed as optional for the consumers having connected load above 10 kw but mandatory for the consumers having connected load above 18 kw. 3. Additional Revenue Rs Crore (2) Non-Domestic LV-2 PROPOSED EXISTING Categories Sub Category Fixed Cost Charge NON- DOMESTIC Rs/KVA/Month Connected load GOVT based (Urban) Connected load based (Rural) DEMAND BASE (Urban) DEMAND BASE (Rural) Units 0-50 GENERAL (Urban) Units 0-50 (Rural) Units >50 (Urban) Units >50 (Rural) SINGLE X-RAY PLANT PHASE THREE PHASE Energy Fixed Cost Fixed Cost Fixed Cost Cost Charge Charge Charge Charge Load based Connection Rs/KW/Month Based Rs/unit Rs/KVA/Month or (Rs./Month) Rs/Hp/Month Energy Fixed Cost Fixed Cost Cost Charge Charge Charge Rs/KW/Month Connection or Based Rs/unit Rs/Hp/Month (Rs./Month) Additional Fixed Charges (Rs. Per machine per 200 Additional Fixed Charges (Rs. Per machine per month) month) 700 Additional Fixed Charges (Rs. Per machine per 300 Additional Fixed Charges (Rs. Per machine per month) month) >10 CD (Urban) Demand Based (optional) >10 CD (Rural) 4.00 TEMPORARY Urban Rural Temporary (Marriage Garden) Urban Rural M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 98

99 Highlight:- 1. The Fixed charges and Minimum Charges for consumers on declared rural feeders are proposed as 50% of Normal Charges. 2. The Minimum consumption in Urban Area is proposed to increase from 360 units per kw per annum to 480 units per kw per annum. 3. Additional Revenue Rs Crore. (3) Public Water Works and Street Lights LV 3 PROPOSED EXISTING Categories Sub Category Fixed Cost Charge Energy Energy Cost Cost Fixed Cost Charge Charge Charge PUBLIC WATER WORKS AND STREET LIGHTS Load based Rs/KW/Month or Rs/Hp/Month Rs/unit Rs/KW/Month or Rs/Hp/Month Rs/unit PUBLIC WW M.C. /C.B. WWS NAGAR PANCHAYT GRAM PANCHAYAT TEMPORARY 1.5 times the applicable tariff 1.3 times the applicable tariff STREET LIGHTS M.C. /C.B. WWS Highlight:- NAGAR PANCHAYT GRAM PANCHAYAT An on Energy Charges on installation of energy saving devices remains unchanged. 2. Additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 99

100 (4) LT Industry LV-4 PROPOSED EXISTING Energy Sub Fixed Cost Fixed Cost Fixed Cost Fixed Cost Categories Cost Category Charge Charge Charge Charge Charge LT INDUSTRY Non-Seasonal Consumers Rs/KVA/Month Load based Rs/KW/Month or Rs/Hp/Month Rs/unit Rs/KVA/Month Rs/KW/Month or Rs/Hp/Month Energy Cost Charge Rs/unit UPTO 25 HP Industry (Urban) Industry (Rural) DEMAND BASE (Urban) DEMAND BASE (Rural) DEMAND Above 25 HP BASE to 100 HP (Urban) DEMAND BASE (Rural) DEMAND Above 100 HP BASE (Urban) DEMAND BASE (Rural) Temporary 1.5 times the applicable tariff 1.3 times the applicable tariff Seasonal Consumers During Season During Off Season Highlighlt:- Normal tariff as for Non seasonal consumers Normal tariff as for Nonseasonal consumers on 10 % of contract demand (or actual recorded demand, whichever is more) 120 % of normal tariff as for Nonseasonal consumers Normal tariff as for Non seasonal consumers Normal tariff as for Nonseasonal consumers on 10 % of contract demand (or actual recorded demand, whichever is more) 120 % of normal tariff as for Nonseasonal consumers 1. The Fixed charges and Minimum Charges for consumers on declared rural feeders are proposed as 50% of Normal Charges. 2. The Minimum consumption in Urban Area has proposed to increase from 360 units per kw per annum to 480 units per kw per annum. 3. Additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 100

101 (5) Irrigation Pumps for Agriculture LV-5 PROPOSED EXISTING Categories Energy Cost Charge (Rs./unit) Energy Cost Charge (Rs./unit) IRRIGATION PUMPS AND AGRICULTURE Rural Urban Rural Urban First 300 units Rest of the Units Temporary DTR Metered Consumers Assessment of Permanent Connection Single Phase (April to June) Single Phase (July to Sept) Single Phase (Oct to March) Three Phase (April to June) Three Phase (July to Sept) Three Phase (Oct to March) Assessment of Temporary Connection Single Phase Three Phase (5.2) Other Than Agriculture Categories IRRIGATION PUMPS AND AGRICULTURE PROPOSED Energy Cost Charge Fixed Charge Energy Cost Charge (Rs per month) (Rs/unit) Urban Rural (Rs/unit) EXISTING Fixed Charge (Rs./month) Urban Rural Connected Load Base Upto 25 HP Per HP 30 per HP 3.20 HP 45 per HP 10 per HP Demand Base Upto 25 HP per kva of billing demand 72 per kva of billing demand per kva of billing demand 52 per kva of billing demand Above 25 HP and upto 100 HP per kva of billing demand 72 per kva of billing demand per kva of billing demand 52 per kva of billing demand Highlight:- 1. An Incentive on Energy Charges on installation of energy saving devices remains unchanged. 2. Additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 101

102 LT-General condition 1. Load Factor Incentive on Energy Charges above 25% LF remains unchanged and proposed for all categories of Demand Based LT consumers. 2. Power Factor Incentive on total amount of bill of PF above 85% remains unchanged and proposed for all categories of Demand Based LT consumers. 3. TOD penalty and rebate for all Demand based consumers has been proposed. 4. Power Factor surcharge for below 80% remain unchanged but ceiling limit of 10% is proposed to be withdrawn. 5. In case the maximum demand recorded exceeds the contract demand, the charges of 1.5 times is proposed 2 times the tariff for fixed charges and energy charges for consumption corresponding to excess demand. In such cases rebate/incentives as prescribed in General terms and conditions of tariff shall not be applicable on the excess demand availed. However, the penalties/surcharge, if any, shall be applicable. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 102

103 (B) HT Tariff Schedule (1) Railway Traction Categories HV 1 PROPOSED EXISTING Sub Category Fixed Cost Charge Energy Cost Charge Fixed Cost Charge Energy Cost Charge Rs/KVA/Month Rs/unit Rs/KVA/Month Rs/unit Railway Traction 220/132 KV Nil 4.77 Highlight:- 1. Two Part Tariff has been proposed. 2. For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. 3. The PF Surcharge below 90% is proposed. 4. Additional Revenue Rs Crore. (2) Coal Mines HV 2 PROPOSED EXISTING Energy Energy Energy Energy Categories Sub Category Cost Cost Cost Cost Fixed Cost Fixed Cost Charge Charge Charge Charge Charge Charge (upto (upto (upto (upto 50% LF) 50% LF) 50% LF) 50% LF) Rs/KVA/Month Rs/unit Rs/unit Rs/KVA/Month Rs/unit Rs/unit COAL MINES Highlight:- 220 KV KV KV KV For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. It is also proposed that 220 & 132 kv consumer has to maintain minimum Annual consumption corresponding to 25% LF on CD and 33 & 11 kv consumer has to maintain minimum consumption corresponding to 15% LF on CD. 2. The PF Surcharge below 90% is proposed.additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 103

104 (3)Industrial and Non Industrials HV - 3 PROPOSED EXISTING Energy Energy Energy Cost Cost Cost Fixed Cost Fixed Cost Charge Charge Charge Categories Sub Category Charge Charge (upto (upto 50% (upto 50% 50% LF) LF) LF) Energy Cost Charge (upto 50% LF) Rs/KVA/Month Rs/unit Rs/unit Rs/KVA/Month Rs/unit Rs/unit INDUSTRIAL NON- INDUSTRIAL Shopping malls 220 KV KV KV KV KV KV KV KV KV KV KV KV Highlight:- 1. For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. It is also proposed that 220 & 132 kv consumer has to maintain minimum Annual consumption corresponding to 25% LF on CD and 33 & 11 kv consumer has to maintain minimum consumption corresponding to 15% LF on CD. 2. Additional Revenue Rs Crore. (4)Seasonal HV 4 PROPOSED EXISTING Energy Cost Energy Cost Categories Charge Charge Fixed Cost Sub Fixed Cost Charge (upto (upto Charge Category 50% 50% LF) LF) Energy Cost Charge (upto 50% LF) Energy Cost Charge (upto 50% LF) Rs/KVA/Month Rs/unit Rs/unit Rs/KVA/Month Rs/unit Rs/unit SEASONAL (During 33 KV Season) 11 KV SEASONAL 33 KV NA NA H.T.(during off season) 11 KV NA NA Highlight:- 1. For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. It is also proposed that consumer has to maintain minimum Annual consumption corresponding to 11% LF on CD. 2. Additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 104

105 (5) Irrigation, Public Water Works and Other than Agricultural Categories Public Water Works, Group Irrigation and LIS OTHER THAN AGRICUL. Highlight:- HV 5 PROPOSED EXISTING Energy Fixed Cost Energy Cost Fixed Cost Cost Sub Category Charge Charge Charge Charge Rs/KVA/Month Rs/unit Rs/KVA/Month Rs/unit 132 KV KV KV KV KV KV For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. It is also proposed that consumer has to maintain minimum Annual consumption corresponding to 9% LF on CD 2. Additional Revenue Rs Crore. (6) Bulk Residential Users Categories HV 6 PROPOSED EXISTING Sub Category Fixed Cost Charge Energy Cost Charge Fixed Cost Charge Energy Cost Charge (upto 50% LF) Energy Cost Charge (upto 50% LF) Rs/KVA/Month Rs/unit Rs/KVA/Month Rs/unit 132 KV KV KV KV KV KV Highlight:- 1. For calculation of Minimum consumption it is proposed that PF of 0.90 or actual whichever is higher will be applied. It is also proposed that consumer has to maintain minimum Annual consumption corresponding to 10% LF on CD 2. No Load Factor incentive has been proposed to be allowed. 3. Additional Revenue Rs Crore. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 105

106 (7) Bulk Supply to Exemptees Categories HV 7 PROPOSED EXISTING Fixed Energy Energy Cost Fixed Cost Cost Cost Sub Category Charge Charge Charge Charge Rs/KVA/ Month Rs/unit Rs/KVA/M onth Rs/unit BULK SUPPLY EXEMPTEE Rural Electric Cooperative Society Mixed Domestic and Agriculture Use in rural Area Mixed Domestic and Non -domestic Use in Urban Area Highlight:- 1. TOD Surcharge and Rebate is proposed to be withdrawn. 2. Additional Revenue Rs. (-) Crore. HT-General condition 1. For the purpose of calculating Load Factor it is proposed that the PF may be consider as 0.9 or actual whichever is higher. 2. It is proposed that the excess demand, if any, in any month shall be charged at 2 times the Fixed Charges prescribed in the tariff applicable to the consumer. In such case rebate/incentives as prescribed in General terms and conditions of tariff shall not be applicable on the excess demand availed however the penalties/surcharge if any shall be applicable. It is also proposes that the corresponding energy consumption for excess demand shall be computed on prorate basis and shall be billed at 2 times of the applicable normal energy charge. 11. Based on the information available, the Petitioner has made sincere efforts to comply with the Regulations of the Hon'ble Commission and discharge its obligations to the best of its abilities and resources of its command. However, should any further material information become available during the process of determination, the Applicant be permitted to reserve the right to file such additional information and consequently amend/ revise the application. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 106

107 A16: COMPLINACE ON TARIFF ORDER FY Distribution losses: - The level of distribution losses has been the major cause of concern year after year. The efforts made in this regard lack a serious commitment and focus. The Commission while determining the tariff has been allowing only normative level of losses in accordance with the milestones laid down by GoMP, however, in this process, the losses above the normative level are borne by the distribution licensees. The normative losses are those prescribed by the State Government and are/were definitely achievable. The difference of actual losses and those prescribed continues to be substantial. As cost of power purchase accounts for 75% to 80% of total cost incurred by Distribution Licensees, the large difference in actual and normative losses is causing severe strain on financial position of these companies. In a short span of less than 4 years of their creation, these companies appear to have become financially sick. Their capacity to serve efficiently is constrained by a perennial cash shortage. Despite repeated directives, the capex implementation of all Discoms continues to be extremely poor. Even after 4 years of their coming in existence, an effeective planning cell is yet to be formed. Poor capex implementation and planning coupled with sharper increase in demand, in the opinion of the Commission, has further increased the technical loss component in place of its reduction. Efforts made to reduce commercial losses have neither been adequate nor have made much impact on the level of these losses. When viewed in the backdrop of achievements of private and Government owned distribution companies in most of other States, performance of distribution companies in our State is dismal. The Commission under section 86(2)(i) of the Electricity Act, 2003, shall separately advise the State Government to set up a monitoring mechanism for overseeing the capex planning and implementation, identification of high commercial loss areas and strategies for reduction of these losses. The Commission itself shall review the activities and performance related to above areas after each quarter. The distribution companies are directed to make all out efforts to show definite improvement lest this malady starts threatening their very existence. Discoms submission:- At the outset, it is submitted that a planning cell has already been setup in East Discom which is working effectively. The efforts being made by East Discom in reduction of technical losses as well as commercial losses and the constraints in achieving the desired goals are described as under:- Technical loss reduction The activity related with reduction of technical loss requires a huge capital investment with appropriate planning and monitoring at execution stage for effective implementation. In the present scenario, the East Discom although have a capex plan formulated in the past but to attend the revised loss target by Hon ble MPERC, Discom have to undergo cumbersome exercise of utterly, yet quickly to revise the existing investment plan and somehow dove tailing the existing plan into the modified plan. By the end of FY 2013, East Discom has to achieve the revised target of 24% distribution loss whereas the existing capex plan is based on pre revised loss level of about 36% in the company. For preparing an effective investment plan, reasonable estimation of technical and non technical components of losses is quite important apart from voltage level wise energy flow and loss accounting. The physical targets for attaining revised target of 24% distribution loss would be best determined using a bottom-toup approach. However, integrated and detailed analyses, data, simulation studies etc, for each voltage level and system segment is needed, which, at present, is not feasible within a reasonable time. Hence, a piecemeal model has been adopted for each voltage level, using relevant macroscopic parameters, and matching various attributes in the overall estimation to obtain a coherent strategy. It is assumed that, the non-technical loss components in the 33 KV and 11 KV networks are not significant. The service line is however quite a weak component which is seldom included in loss or load flow simulation models. However, it is the weakest link, having lowest redundancy, in the supply system. For effective loss reduction in LT segment, the East Discom has already chalked out a program for execution of HVDS project in the high loss area which is in implementation stage. Under the HVDS project, No. of mother DTRs are covered of which the M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 107

108 associated LT lines will be converted into 11 KV system. About No. of child DTRs (25 KVA & 16 KVA) will also be installed alongwith No. of energy meters installed on DTRs itself to cover the agriculture consumers. The work of HVDS is going on in full swing and likely to be completed by March By and large the results of HVDS are up to expectation and it is likely that the LT loss level will be under control after execution of the HVDS project. It is to highlight here that the HT to LT ratio which was 1:1.53 in March 04 has already improved to 1:1.36 by Oct 09 and it is further likely to improve by 1:1 after implementation of HVDS project thus bringing down significant loss reduction. Further, to strengthen 11 KV & 33 KV system, the Discom has already commissioned large number of 33/11 KV S/s, enhanced the MVA & KVA capacity of the X-mer and large number of capacitor banks have also been commissioned. The Discom has also planned to further add new 33/11 KV S/s in the coming years so as to control the loss at 11 KV level. So far as 33 KV system is concerned, it is admitted that in the past, no significant achievement could be made for strengthening of the system but now scheme has been prepared and posed to the funding agency i.e. Indo-German in which all the 33 KV network is covered and over loading shall be eliminated after implementation of the project. The scheme has been submitted for approval of State Government through which the funds under funding agency i.e. Indo-German are expected. Approximately 1300 Km 33 KV new lines worth Rs. 179 Cr. shall be laid down under this scheme which will take about 3 years to finish after commencement. Similarly, about 25 No EHV Sub-stations are also planned for commissioning by end of FY 2012 by the Transmission Company. Commercial loss reduction The East Discom is also taking various steps for bringing down non-technical (commercial) loss level. A few of the initiatives are as follows- Laying of aerial bunched/armoured cables in theft infested urban/suburban areas and conversion of conventional LVDS power supply system to HVDS system; On-line interactive telemetering using mobile/pstn networks from remote locations for identified high-value HT and LT consumers (e.g. industrial/ commercial installations); Introduction and stabilization of proper energy audit/accounting systems/ procedures and MIS for revenue and theft of energy; Effective and more tamper-proof consumer metering by installing high-precision state-of-the-art meters; Introduction and roll-out of franchise in distribution sector; Shifting of meters to conspicuous and accessible locations; Miscellaneous infrastructural reinforcements- e.g., vehicles; Vigilance activities by conducting special raids in theft prone areas by flying squads & O&M staff etc Meterization of unmetered connections: The Electricity Act at Section 55 (1) provides that the supply of electricity after the expiry of two years from the appointed date shall not be made except through installation of the correct meter. The State Commission has been authorized to extend the said period of two years. The Commission on request of the distribution licensees had extended the said period, however, the licensees have not been able to ensure full compliance Un-metered connections are in domestic and agricultural consumer categories. During the course of a meeting held earlier with the management of the Distribution Companies, it was assured that all unmetered domestic connections as in the month of Dec., 07 in urban areas would be provided with the meters by the end of March, The licensees have reported that some of the connections under this category are yet to be provided with the meters and have requested to extend the period till June, In addition, the licensees have reported that a large M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 108

109 number of illegal connections both in urban and rural areas have been regularized without providing meters so as to bring them in the billing net Difficulties were expressed in providing individual meters to the agricultural consumers. The Commission had therefore directed that till such time individual meters are installed, meters on distribution transformers be provided to measure agricultural consumption. The progress in this regard has been far from satisfactory. It may be mentioned here that consumption of agricultural connections varies from season to season and from year to year depending upon the intensity of rainfall, ground water level, type of crop sown etc. etc. The present method of assessment of unmetered agricultural consumer is not satisfactory as it does not account for geographical variances. This also leads to another related issue of determination of benchmarks for assessment in case of un-metered agricultural connections. The Commission had earlier directed to carry out study and submit the report with regard to annual consumption made by the un-metered consumers based on consumption recorded in DTR meters. Reports submitted by the licensee are not found acceptable as the reports have not been prepared giving details of actual data in a cohesive and desirable manner and the sample size was too small to be considered as representative. The Commission expects the licensee to take the issue of meterization more seriously and directs as follows:- (a) As agreed earlier during the CMDs meet, all un-metered domestic connections in urban areas as in the month of December, 07 should have been provided with meters by the end of June, Compliance in this regard be submitted within a month. (b) All un-metered domestic connections in urban areas given after December, 07 be provided with meters in a phased manner and meterisation be completed by March, (c) All un-metered domestic connections in rural areas be provided with meters in a phased manner and meterisation be completed by March, (d) Not less than 25% of the distribution transformers having pre-dominantely agricultural load covering the entire area of the Company be provided with meters by end of March, Discoms submission:- Meterisation of unmetered connection It is submitted that most of the connections without meters in urban areas have been provided with meters barring few connections which could not be provided with meters due to shortage of single phase meters. All efforts are however being made to provide 100% metered connections in urban areas by the end of March, Recently, the company has also allowed LT consumers to procure the energy meter by themselves from the approved vendor so as to further boost up meterisation. Quarterly progress report in this regard is being regularly submitted to Hon ble Commission. So far as rural area is concerned, the Discom has a large number of unmetered connections mainly on account of regularization of illegal consumers in large volume during the past years. Due to shortage of meters these consumers could not be provided with meters as yet. The company is expecting that once the franchisees are appointed in all the Districts which is mandatory under RGGVY scheme, then the unmetered category will be speedily converted into metered category. Regarding providing individual meters to the agriculture consumers, it is to specifically mention that East Discom is already executing the HVDS project under which all type of agriculture consumers shall be provided with the energy meters installed at DTR locations. So far 6538 meters have already been installed for the agriculture consumers. In all agriculture consumers shall be provided energy meters by the end of project i.e. March The present method of assessment of unmetered agriculture consumers based on sample consumption of meter reading of DTRs installed on predominating agricultural consumer feeders may be modified based on the consumptions recorded on these installed meters under HVDS project. In this regard, data related to consumption of agriculture consumers shall be collected and submitted in due course for consideration. After installation of energy meters for individual agriculture consumers under HVDS Project, there shall not be any need to install DTR metering having predominantly agriculture load Data of at least 10% of total DTRs having pre-dominant agricultural load should be collected and compiled on a M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 109

110 regular basis. This data should include the details of the transformer location, capacity, ate of installation of DTR meter, initial reading, monthly readings of DTR, monthly consumption recorded in the DTR meter, number of consumers connected to the DTR, category of consumers and their connected load, details of survey of LT lines emanating from the DTR capturing all connections including the illegal connections, if any with their load and indicating the date of survey and the rank of the person who carried out the survey etc. etc. Based on the data so compiled, consumption per HP of irrigation pump should be worked out on a monthly basis from a particular DTR. It may be necessary to organize the work by nominating Nodal Officer at the corporate level of the company. The Commission directs to submit the above data and its analysis along with the petition for ARR and tariff proposals for the next year. Discoms submission:- Compliance on this issue will be submitted within one month time 16.6 Capex plan for reduction of technical losses:- The Distribution Company requires to develop a comprehensive capital expenditure plan which should not only aim at the reduction of technical losses but at the same time should also include the factor of normal load growth and incremental losses on account of such load growth. It is felt that instituting a Planning Cell staffed with technical experts of requisite capability at the corporate level of the company is essential. This issue was brought up during the meeting with the CMDs of distribution companies held on 5th March, 09, wherein the CMDs have assured of taking action. Only Central Discom has informed that they have formally created a Planning Cell which would be operative from July, 09. Response of other two Discoms is awaited. The Commission would like to emphasize that it is in the interest of the distribution licensees to have such an important activity being monitored at the corporate level. This Planning Cell is expected to assist in developing a comprehensive prospective capex plan and to monitor its execution and take corrective actions whenever and wherever required. The Commission would further like to have a regular interaction between the Planning Cell and concerned officers of the Commission so as to have details about activities of implementation of capex plan. The Commission directs to submit the comprehensive Capex plan within three months and to create a Planning Cell without further delay. The Commission would like to interact with the Planning Cell officers on the Capex plan in the month of August, 09. Discoms submission:- It is submitted that the planning cell in the East Discom is already in place and working efficiently. The planning cell has carried out study on all the 33 KV feeders and all 11 KV feeders having load above 100 Amp. The capital work proposed in any scheme for execution is based on the study done by the planning cell. A comprehensive Capex Plan has already been got approved from the MPERC with subsequent modifications to accommodate impact of various schemes being sanctioned. It may however be mentioned that with the revised loss trajectory as directed by State Government/ MPERC from time to time, slight modifications are required in the already approved Capex Plan which shall be done in due course Installation of meters having facility to record average monthly demand on domestic category of consumers:- The licensees in their petitions have proposed to introduce demand based tariff as optional for domestic consumers having contract demand of 10 KW up to 18 KW and mandatory for the contract demand above 18KW. However, the confirmation of having provided required type of meters on all such connections has not been submitted. The Commission directs to provide meters on all the domestic connections having a connected load of 10 KW and above during this year and report compliance. Discoms submission:- The East Discom has already undertaken the project of AMR for all such consumers having load above 10 HP. About 70% consumers have already been covered and balance 30% is likely to be finished by Feb 10. Therefore, the tariff proposal for introducing demand based tariff as optional for domestic consumers may be considered. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 110

111 16.8 Segregation of rural feeders into agricultural and others:- During the course of meeting with the CMDs of distribution companies on 5th March, 2009, it was brought to the notice of the Commission that Companies are planning to take up the work of segregation of rural feeders into agricultural and others in a big way. This is a welcome move. The example of Gujarat State in this regard is worth mentioning where such work has resulted in not only assured supply hours but has also helped in reducing the technical loss. The problem of using pump connection even during single phasing will also get obviated. The Commission directs the distribution licensees to file within three months the detailed plan indicating the time lines for completion of work. Discoms submission:- In order to implement the program of segregation of rural feeders into agricultural and others, East Discom has already conducted a detailed study by deputing their senior officers to Gujarat State where such works have been under taken successfully. Based on the study, the East Discom has also undertaken the work of feeder segregation in the entire Sagar District where the works on about 611 KV feeders have been completed. The rest of the works are under execution and shall be completed before March Minimum supply hours: - During the course of analyzing the objections submitted by the consumers and also during the public hearings a large number of consumers have protested that they are not being provided supply for adequate hours and at times the supply hours are reduced to 4 to 6 hrs a day. This is causing a lot of inconvenience to them. The Distribution licensees are under an obligation to provide adequate supply to the consumers in its area. Looking to the present power scenario, the Commission directs Distribution Licensees to ensure that following minimum average supply hours during the year be ensured: (I) (II) (III) (IV) Commissionary head quarters: 22 hours District head quarters : 19 hours Tehsil head quarters : 14 hours Rural areas : Total 12 hours out of which three phase supply for at least 6 hours Discoms submission:- Average supply hours during upto Nov 09 was as under:- (I) (II) (III) (IV) Commissionary head quarters: 23:10:15 hours District head quarters : 21:21:52 hours Tehsil head quarters : 15:57:07 hours Rural areas : Total 12:50:08 hours out of which three phase supply was 7:18:22 hours It could be seen from above that discom has given excess supply as committed in the tariff order.the average 3 phase supply hours in ruler area was 7:18:22 hours which is much more than the committed 6 hours supply.in view of this Hon ble Commission is requested to allow additional sales to unmetered agricultural connections over and above the norms at the time of true for FY No new connections be released or enhancement of load be permitted under tariff category LV-4 LT Industrial 4.1 (c). Discoms submission:- It is submitted that no new connections are being released or enhancement of load is being permitted under tariff category LV-4 LT Industrial 4.1 (c) Appointment of Franchisees:- The distribution licensees have been appointing franchisees from time to time. The franchisees being an agent of distribution licensees, the licensee still remains responsible to the consumers. However, in order that consumers interests are not adversely affected in anyway by appointment of franchisees, it is necessary to monitor this activity. The Commission directs the licensee to submit details M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 111

112 whenever a franchisee is appointed in the area of the licensee. The details may contain agreements with the franchisee having terms and conditions of appointment of franchisees indicating their role and responsibility in day to day operations. Discoms submission:- The details of appointment of franchisees in the area of East Discom along with terms and conditions & model agreements etc. will be submitted to with in one month Issue of tariff card with first bill based on new tariff for the year :- The distribution companies are directed to issue a tariff card to all consumers containing details of tariff for various categories applicable as per the tariff order for the year. Discoms submission:- Vide publicity has already been made for implementation of applicable tariff for The tariff schedule is also available on the web-site of the Discom. However, the tariff schedule booklet to all HT consumers has been provided Filing of ARR and tariff proposals in Hindi language: - All the distribution companies are directed that ARR and tariff proposals and true up petitions in future should be filed both in English and Hindi. Discoms submission:- This filing is made in English and all out efforts will be taken for conversion of this petition into Hindi version and it will take about one month time Accounting of rebates/incentives/ surcharge: All the distribution companies are directed that the details of consumer category wise month wise rebates/incentives/ surcharge given in bills as per provision of the tariff order be maintained and submitted with next year s petitions for ARR/ Tariff proposals. Discoms submission:- The rebates/incentives/ surcharge for entitled consumer are regularly mentioned in the consumer bill. The month wise detail for HT consumers will be submitted within one month from this filing. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 112

113 ARR/Tariff petition FY 11 Proposed Tariff Schedule-LT M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 113

114 ANNEXURE TO TARIFF PETITION FOR FINANCIAL YEAR PROPOSED TARIFF SCHEDULES FOR LOW TENSION CONSUMERS Table of Contents Tariff Category Page No LV - 1 Domestic 227 LV 2 Non-Domestic 230 LV 3.1 Public Water works 233 LV 3.2 Street Lights 233 LV 4 LT Industry Non Seasonal Seasonal 234 LV 5 Irrigation pumps for agriculture 237 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 114

115 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 115 MYT ARR for to 12-13

116 Schedules for Low Tension Consumers Tariff Schedule-- LV-1 DOMESTIC: --- Applicability: This tariff is applicable for light, fan and power for residential use only. Dharamshalas, old age houses, rescue houses, orphanages, places of worship and religious institutions will also be covered under this category. Tariff for Energy Charges and Fixed Charges: LV 1.1 (Consumption up to 30 units per month) (a) Energy Charge For actual consumption of metered connection S. No. Monthly Energy charges consumption for all units consumed (paise per unit) Minimum charges (Rs. per connection per month) Minimum charges (Rs. per connection per month) Urban/ Rural Urban Rural 1 Up to 30 units (b) Fixed Charge No fixed charge is applicable to consumers with monthly consumption up to 30 units. LV 1.2 (Consumption more than 30 units per month) (a) (i) Energy Charge For actual consumption of metered connection S. No. Slabs of monthly consumption Energy charges with telescopic benefit (paise per unit) Urban/ Rural Minimum charges (Rs. Per connection per month)urban Minimum charges (Rs. Per connection per month) Rural 1 Up to 50 units to 100 units to 200 units Above 200 units Demand Based 6 Temporary connection for construction of own house (max. up to one year), social / marriage purposes and religious functions. 7 Through DTR meter for clusters of Jhuggi/Jhopadi till individual meters are Annual minimum Annual minimum 400 consumption consumption based based on 480 units on 240 units per kw per kw or part or part thereof of NIL NIL M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 116

117 (ii) Energy charge for un-metered domestic connections: S. No. Particulars Units and Energy charges to be billed per month for unmetered connections (paise per unit) Minimum charges (Rs. Per connection per month) 1 Un-metered connection 77 units per 2 (urban) Un-metered connection (rural) units per 325 (b) Fixed Charge This charge is recoverable per month as per the table given below in addition to energy charge. This charge shall also be applicable for temporary /un-metered connections. This charge is, however, not applicable to consumers receiving supply through DTR meter. NIL NIL Slabs of monthly consumption Up to 50 units Fixed Charges for consumer receiving supply (urban) Rs. 20 per connection per month Fixed Charges for consumer receiving supply (rural) Rs. 10 per connection per month 51 to 100 units Rs.30 per connection per month 101 up to 200 units Rs. 60 for each 0.5 KW of authorised load per month Above 200 units Rs. 60 for each 0.5 KW of authorised load per Demand Based (for Above 10 kw Load) Temporary connection for construction of own house (max. up to one year) Temporary connection for social/ marriage purposes and religious function. Rs. 25 per kw or part thereof or Rs. 20 per kva or part thereof of billing demand Rs. 80 for each 0.5 KW per month of sanctioned load or connected load or recorded load which ever Rs. 5 is for highest each 0.5 KW of sanctioned load or connected load or recorded load which ever is highest per day or part thereof Rs.15 per connection per month Rs. 30 for each 0.5 KW of authorised load per month Rs. 30 for each 0.5 KW of authorised load per month Rs. 13 per kw or part thereof or Rs. 10 per kva or part thereof of billing demand Rs. 40 for each 0.5 KW per month of sanctioned load or connected load or recorded load which ever is highest Rs. 3 for each 0.5 KW of sanctioned load per month of sanctioned load or connected load or recorded load which ever is highest per day or part thereof M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 117

118 Un-metered connection Through DTR meter for clusters of Jhuggi/ Jhopadi till individual meters are provided Rs. 30 per connection per month Nil Rs.15 per connection per month Nil Note: The authorized load shall be as defined in the Electricity Supply Code (Every 75 units consumption per month or part thereof shall be considered equal to 0.5 KW of authorised load. Example: If consumption during the month is 125 units, then the authorised load will be taken as one KW. In case the consumption is 350 units then the authorised load will be taken as 2.5 KW.) Terms and conditions a) Specific conditions for DTR metered consumers: (i) (ii) All the consumers connected to the DTR shall pay the energy charges for the units worked out based on their actual connected load. All the consumers will be required to execute agreement with the Licensee to this effect. b) Other terms and conditions shall be as specified under General Terms and Conditions. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 118

119 Tariff Schedule LV-2 NON-DOMESTIC: --- LV CATEGORY 2.1 Applicability: This tariff is applicable for light, fan and power to Educational Institutions including workshops & laboratories of Engineering Colleges / Polytechnics/ITIs (which are registered with /affiliated/ recognized by the relevant Govt. body or university), Hostels for students or working women or sports persons (run either by Govt. or individuals) Tariff: Tariff shall be as per following table: S. No. Sub category Energy charges (paise/unit) 1 Connected load based tariff 2 Demand based (optional for above 10 kw load) Monthly Fixed charges in urban areas Urban/ Rural 600 Rs. 50 per KW or part thereof 600 Rs.150 per KW or Rs.120per KVA of billing demand per month Monthly Fixed charges in rural areas Rs. 25 per KW or part thereof Rs.75 per KW or Rs. 60 per KVA of billing demand per month LV CATEGORY 2.2 Applicability: This tariff is applicable for light, fan and power to Railways (for purposes other than traction and supply to Railway Colonies/water supply), Shops/showrooms, Parlours, Government Offices, Government Hospitals and Government medical care facilities including Primary Health Centres, offices belonging to public/private organisations, public buildings, guest houses, Circuit Houses, Government Rest Houses, X-ray plant, recognized Small Scale Service Institutions, clubs, restaurants, eating establishments, meeting halls, places of public entertainment, circus shows, hotels, cinemas, professional's chambers (like Advocates, Chartered Accountants, Consultants, Doctors etc.), private clinics, nursing homes and private hospitals, bottling plants, marriage gardens, marriage houses, advertisement services, advertisement boards/ hoardings, training or coaching institutes, petrol pumps and service stations, tailoring shops, laundries, gymnasiums and health clubs and any M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 119

120 other establishment (except those which are covered in LV 2.1), who is required to pay Commercial tax/service tax/value added tax (VAT)/entertainment tax/luxury tax under any Central/State Acts. Tariff: Tariff shall be as per following table: S. No. Sub category Energy charges for all units consumed (paise/unit) Fixed charges (urban) ( in Rs) Fixed charges (rural) (in Rs) Urban/ Rural 1 On all units if monthly consumption is up to 50 units 2 On all units in case monthly consumption exceeds 50 units per KW or part thereof per month per KW or part thereof per month 3 Demand based per KW or 144 per KVA of billing demand per month 4 Temporary connections including Multi point temporary connection at LT for Mela** per KW or part thereof per month 15 per KW or part thereof per month 25 per KW or part thereof per month 90 per KW or 72 per KVA of billing demand per month 50 per KW or part thereof per month 5 Temporary connection for marriage purposes at marriage gardens or marriage halls or any other premises covered under LV 2.1 and 2.2 categories 800 (Minimum consumption charges shall be 6 Units per day per kw of Sanctioned or Connected or Recorded Load whichever is highest subject to a minimum of Rs. 700/-) Rs. 30 for each KW or part thereof of sanctioned or connected or recorded load whichever is highest per day or part thereof Rs. 15 for each KW or part thereof of sanctioned or connected or recorded load whichever is highest per day or part thereof 6 For X-Ray plant Additional Fixed charges (Rs. per machine per month) Single Phase 500 Three Phase 700 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 120

121 **In case permission for organizing Mela is granted by Revenue Authorities of Government of Madhya Pradesh. Terms and Conditions: a) Minimum consumption: The consumer shall guarantee a minimum annual consumption of 480 units per kw or part thereof of connected load or load as per agreement, whichever is higher or contracted load (in case of demand based charges), supplied in urban areas and 240 units per kw or part thereof of connected load or load as per agreement, whichever is higher or contracted load ( in case of demand based charges ), supplied from rural feeder. However, the load of X-Ray unit shall be excluded while considering the connected load of the consumer for calculation of minimum consumption. The deficit unit (Minimum consumption actual consumption) if any shall be billed at the applicable energy rate. Once the consumption equal to annual minimum consumption is recorded, no further billing of minimum charges shall be done in subsequent months of the year Minimum consumption charges in case of Temporary connections for marriage purposes shall be 6 Units per day per kw or part thereof of Sanctioned or Connected or Recorded Load whichever is highest subject to a minimum of Rs. 700/-. b) Additional Charge: Shall be as per following: i. Consumers opting for demand based tariff: The consumers availing supply at demand based tariff shall, at all times, restrict their actual maximum demand within the contract demand. The consumer shall pay 2 times the tariff for fixed charges and energy charges for consumption corresponding to excess demand in case the maximum demand recorded exceeds the contract demand and while doing so, the other terms and conditions of tariff, if any, shall also be applicable on the said excess demand. ii. The above billing for Excess Demand at 2 times the normal tariff, applicable to consumers is without prejudice to the licensee s right to ask for revision of agreement and other such rights that are provided under the regulations notified by the Commission or under any other law. c) Other terms and conditions shall be as specified under General Terms and Conditions. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 121

122 Tariff Schedule LV-3 PUBLIC WATER WORKS AND STREET LIGHTS Applicability: The tariff LV-3.1 is applicable for Public Utility Water Supply Schemes, Sewage Treatment Plants, Sewage Pumping Installations run by P.H.E. Department or Local Bodies or Gram Panchayats or any other organization authorised by the Government to supply/ maintain public water works / sewerage installations and shall also be applicable to electric crematorium maintained by local bodies/trusts. The tariff LV-3.2 is applicable to traffic signals and lighting of public streets or public places including parks, town halls, monuments and its institutions, museums, public toilets including Sulabh Shochalaya, public libraries, reading rooms run by Government or Local Bodies. Tariff: The tariff for the sub-categories shall be based on current monthly consumption as per following table: Category of consumers/area of applicability Monthly Fixed Charges (Rs./KW/month) Energy Charges (paise per unit) 3.1 Public Water Works (a) Municipal Corporation/ Cantonment board (b) Municipality/ Nagar Panchayat (c) Gram Panchayat (d) Temporary 1.5 times the applicable tariff 3.2 Street light (a) Municipal Corporation/Cantonment board (b) Municipality/ Nagar Panchayat (c) Gram Panchayat Minimum Charges No Minimum Charges No Minimum Charges Terms and Conditions: (a) Incentives for adopting Demand Side Management An 5 % on energy charges shall be given on installation of energy saving devices (such as ISI energy efficient motors for pump sets and programmable on-off/ dimmer switch with automation for street lights) to the satisfaction of the licensee. Incentive will only be admissible if full bill is paid within due dates failing which all consumed units will be charged at normal rates. Such incentive will be admissible from the month following the month of installation of energy saving devices and its verification by a person authorized by the licensee. The licensee is required to arrange wide publicity of above incentive. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 122

123 (b) Other terms and conditions shall be as specified under General Terms and Conditions. Tariff Schedule LV-4 LT INDUSTRIAL Applicability: Tariff LV-4 is applicable to light, fan and power for operating equipment used by printing press and any other industrial establishments and workshops (where any processing or manufacturing takes place including tyre retreading). These tariffs are also applicable to cold storage, gur (jaggery) making machines, flour mills, Masala Chakkies, hullers, khandsari units, ginning and pressing units, sugar cane crushers (including sugar cane juicing machine), power looms, dal mills, besan mills, and ice factories and any other manufacturing or processing units (excluding bottling plant) producing/processing food items or processing agriculture produce for preservation/increasing its shelf life and Dairy units ( where milk is processed other than chilling, pasteurization etc to produce other end products of milk.) Tariff: For Non seasonal and seasonal consumers Category of consumers A. Non seasonal consumers 4.1 a LT industries up to 25 HP Fixed Charges (Rs. per month) Fixed Charges (Rs. per month) Energy Charges (paise per unit) Rs. 60 per HP or part thereof Rs.30 per HP or part thereof b Demand based tariff (up to 25 HP) Rs. 144 per kva or Rs 180 per kw per month of billing Rs. 72 per kva or Rs 90 per kw per month of billing c Demand based tariff (Above 25 HP to 100 HP) demand Rs. 144 per kva or Rs 180 per kw per month of billing demand Rs. 72 per kva or Rs 90 per kw per month of billing d Demand based tariff (Above 100 HP & up to 150 HP*) (For existing consumers only) Rs demand 176 /kva or Rs.220 / kw per month of billing demand demand Rs 176 /kva or Rs.220 / kw per month of billing demand e Temporary connection 1.5 times of the applicable tariff B Seasonal Consumers (period of season shall not exceed 180 days continuously). If the declared season or offseason spreads over two tariff periods, then the tariff for the respective period shall be applicable. 4.1 f During season Normal tariff as for Non seasonal consumers 4.1 g During Off -season Normal tariff as for Nonseasonal consumers on 10 % of contract demand or actual recorded demand, whichever is more Normal tariff as for Non seasonal consumers Normal tariff as for Nonseasonal consumers on 10 % of contract demand or actual recorded demand, whichever is more Normal tariff as for Non seasonal consumers 120 % of normal tariff as for Nonseasonal consumers *In addition, these consumers are also liable to pay transformation losses at 3% and transformer rent as per the order for Miscellaneous and general charges. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 123

124 Terms and Conditions: (a) (b) (c) (d) The maximum demand of the consumer in each month shall be four times the largest amount of kilovolt ampere hours delivered at the point of supply of the consumer during any consecutive fifteen minutes in that month. Any consumer above 10 kw load may opt for demand based tariff, however for the consumers having connected load above 25 HP, demand based tariff is mandatory and the licensee shall provide Tri vector/ Bi vector Meter capable of recording Demand in kva/ kw, kwh, KVAh and Time of Use consumption. Demand based tariff for loads above 100 HP & up to 150 HP is for existing consumers only under LV 4.1 d category. No new connection under this category should be released. Minimum Consumption: Shall be as per following: i. For LT Industries in rural areas: The consumer shall guarantee a minimum annual consumption (kwh) based on 240 units per HP or part thereof of contract demand irrespective of whether any energy is consumed or not during the year. ii. For LT Industries in urban areas: The consumer shall guarantee a minimum annual consumption (kwh) based on 480 units per HP or part thereof of contract demand irrespective of whether any energy is consumed or not during the year. iii. During the month in which the annual minimum guaranteed consumption is achieved, no further billing of monthly minimum consumption shall be done in subsequent months of the financial year. (e) Additional Charge: Shall be as per following: i. The consumers availing supply at demand based tariff shall, at all time, restrict their actual maximum demand within the contract demand. In case the maximum demand recorded exceeds the contract demand, the consumer shall pay 2 times the tariff for fixed charges and energy charges for consumption corresponding to excess demand and while doing so, the other terms and conditions of tariff, if any, shall also be applicable on the said excess demand. ii. The above billing of Excess Demand at 2 times the normal tariff, applicable to consumers is without prejudice to the licensee s right to ask for revision of agreement and other such rights that are provided under the regulations notified by the Commission or any other law.. (f) (g) Other terms and conditions shall be as specified under General Terms and Conditions. Other Terms and conditions for seasonal consumers: i. The consumer has to declare months of season and off season for the financial year within 60 days of issue of tariff order and inform the same to the licensee. ii. The seasonal period once declared by the consumer cannot be changed during the financial year. iii. This tariff is not applicable to composite units having seasonal and other category of loads. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 124

125 iv. The consumer will be required to restrict his monthly off season consumption to 15% of the highest of average monthly consumption during the preceding seasons. In case this limit is exceeded in any off season month, the consumer will be billed under Non seasonal tariff for the whole financial year v. The consumer will be required to restrict his maximum demand during off season up to 30 % of the contract demand. In case the maximum demand recorded in any month of the declared off season exceeds this limit, the consumer will be billed under Non seasonal tariff for the whole financial year Tariff Schedule LV - 5 AGRICULTURAL AND OTHER THAN AGRICULTURAL M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 125

126 1. Applicability: The tariff LV-5.1 shall apply to agricultural pump connections, chaff cutters, threshers, winnowing machines, and irrigation pumps of lift irrigation schemes including water drawn by agriculture pumps for use by cattle. The tariff LV-5.2 shall apply to connection for nurseries growing flowers/ plants/ saplings/ fruits, fisheries ponds, aquaculture, sericulture, dairy, hatcheries, poultry farms, cattle breeding farms, grasslands and mushroom growing farms and dairy ( for those dairy units where only extraction of milk and its processing such as chilling, pasteurization etc. is done) 2. Tariff: S. No. Sub-Category Monthly Fixed charges Energy charges 5.1 For agricultural use (paise per unit) a) First 300 units per month NIL 330 b) Rest of the units in the month NIL 395 c) Temporary connections NIL 460 d) DTR metered group consumers NIL For other than agricultural a) use Up to 25 HP in urban areas Rs. 60 per HP 360 b) Up to 25 HP in rural areas Rs.30 per HP 360 c) Demand Base up to 25 HP in urban areas d) Demand Base up to 25 HP in rural areas e) Above 25 HP and up to 100 HP in urban areas f) Above 25 HP and up to 100 HP in rural areas Rs 144 /kva or Rs.180 / kw of billing demand Rs. 72 per kva or Rs. 90 per kw per month Rs 144 of /kva billing or Rs.180 / kw of billing demand Rs. 72 per kva or Rs. 90 per kw per month of billing demand Basis of billing of energy of un-metered consumption: Assessment of un-metered consumption shall be done in the following manner: M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 126

127 Following MYT ARR for to RURAL AREAS 3.1 Un-metered agriculture consumers using three phase motors in rural areas shall be billed on the following basis: Permanent 50 units per HP or part thereof of the sanctioned / connected load per month for the months of July to September and 125 units per HP or part thereof of the sanctioned/connected load per month for the months from April to June and October to March Temporary 160 units per HP or part thereof of the sanctioned /connected load per month. 3.2 Un-metered agriculture consumers using single phase motors in rural areas shall be billed on the following basis: Permanent 60 units per HP or part thereof of the sanctioned / connected load per month for the months of July to September and 135 units per HP or part thereof of the sanctioned/connected load per month for the months from April to June and October to March Temporary 175 units per HP or part thereof of the sanctioned load/connected load per month. URBAN AREAS 3.3 Un-metered agriculture consumers using three phase motors in urban areas shall be billed on the following basis: Permanent 75 units per HP or part thereof of the sanctioned load/connected load per month for the months of July to September and 150 units per HP or part thereof of the sanctioned/connected load per month for the months from April to June and October to March Temporary 175 units per HP or part thereof of the sanctioned load/connected load per month 3.4 Un-metered agriculture consumers using single phase motors in urban areas shall be billed on the following basis: Permanent 90 units per HP or part thereof of the sanctioned / connected load per month for the months of July to September and 175 units per HP or part thereof of the sanctioned/connected load per month for the months from April to June and October to March Temporary 200 units per HP or part thereof of the sanctioned load per month 3.5 Terms and conditions: Consumers opting for temporary supply shall have to pay the charges in advance for three months including those who request to avail connection for one month only subject to replenishment from time to time for extended period and adjustment as per final bill after disconnection. Regarding temporary connection for the purpose of thrashing the crops, temporary connection for a period of one month can be served at the end of Rabi and Kharif seasons only with payment of one month s charges in advance. incentive* shall be given to the metered agricultural consumers on installation of energy M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 127

128 saving devices to the satisfaction of the licensee: -- S. No. Particulars of Energy Saving Devices Rate of rebate in tariff 1. For installation of ISI / BEE star labelled motors for pump sets 2. For installation of ISI / BEE star labelled motors for pump sets and use of frictionless PVC pipes and foot 3. For installation of ISI / BEE star labelled motors for pump sets and use of frictionless PVC pipes and foot valves along with installation of shunt capacitor of appropriate rating 15 paise per unit 30 paise per unit 45 paise per unit * Incentive shall be allowed on the consumer s contribution part of the normal tariff ( full tariff minus amount of Govt. subsidy per unit, if any) for installation of energy saving devices under demand side management. This incentive will only be admissible if full bill is paid within due dates failing which all consumed units will be charged at normal rates. Incentive will be admissible from the month following the month of installation of Energy Saving Devices and its verification by a person authorized by the licensee. The licensee is required to arrange wide publicity to above incentive in rural areas. The licensee is required to place quarterly information regarding incentives provided on its web site. Notes: i) One lamp up to 40 W is permitted at or near the pump in the power circuit without any additional tariff. ii) The use of three phase agriculture pump by installing external device during the period when the supply is available on single phase, shall be treated as illegal extraction of energy and action as per prevailing rules and regulations shall be taken against the defaulting consumer Minimum consumption (i) For Metered agricultural consumers: The consumer shall guarantee a minimum consumption of 25 units per HP or part thereof of sanction/connected load per month for the months from July to September and 90 units per HP or part thereof of sanction/connected load per month for the months from April to June and October to March irrespective of whether any energy is consumed or not during the month. (ii) For other than agricultural use (LV-5.2) : a) The consumer will guarantee a minimum annual consumption (kwh) based on 240 units/hp or part thereof of connected load/ sanction load/ contract demand in rural areas and 480 units/hp or part thereof of connected load/ sanction load/ contract demand in urban areas irrespective of whether any energy is consumed or not during the year. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 128

129 b) During the month in which the annual minimum guaranteed consumption is achieved, no further billing of monthly minimum consumption shall be done in subsequent months of the financial year Additional charge for other than agricultural use (LV-5.2): The consumers availing supply at demand based tariff shall, at all time restrict their actual maximum demand within the contract demand. In case the maximum demand recorded exceeds the contract demand, the consumer shall pay 2 times the tariff for fixed charges and energy charges for consumption corresponding to excess demand. In such cases rebate/incentives as prescribed in General terms and conditions of tariff shall not be applicable on the excess demand availed. However, the penalties/surcharge, if any, shall be applicable Specific conditions for DTR metered consumers: a. All the consumers connected to the DTR shall pay the energy charges for the units worked out based on their actual connected load. b. All the consumers will be required to execute agreement with their Licensee to this effect Other terms and conditions shall be as specified under General Terms and Conditions. GENERAL TERMS AND CONDITIONS OF LOW TENSION TARIFF 1. Rural Areas means feeder declared by the Distribution Licensee for receiving supply as per rural discipline under load regulatory measures. 2 Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paise shall be ignored and 50 paise upwards shall be rounded of to next Rupee. 3 Billing Demand: In case of demand based tariff, the billing demand for the month shall be the actual maximum kva demand of the consumer during the month or 90% of the contract demand, whichever is M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 129

130 higher. The billing demand shall be rounded off to the nearest integer number i.e. fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall be ignored. 4 Fixed charges billing: Fractional load for the purposes of billing shall be rounded off to next higher integer unless specified otherwise. 5 Tariff Minimum Billing:- If any consumer in any month of the financial year (if condition of annual minimum consumption is applicable for that category) registers cumulative consumption more than the prescribed annual minimum consumption no tariff minimum billing shall be done for subsequent months of the financial year. Tarff minimum consumption shall also be applicable on the excess demand for a particular month. Corresponding consumption on the basis of excess demand in a particular month shall not be accounted for the purpose of any adjustment. 6 Other Terms and Conditions: (a) (b) (c) (d) (e) (f) (g) (h) (i) For advance payment made before commencement of consumption period for which bill is prepared, a rebate of 1 % per month on the amount (excluding security deposit) which remains with the licensee at the end of calendar month shall be credited to the account of the consumer after adjusting any amount payable to the licensee. Rebate for prompt payment: An incentive for prompt of the bill amount (excluding electricity duty and Cess) shall be given in case the payment is made at least 7 days in advance of the due date of payment where the current month billing amount is equal to or greater than Rs. One lac. The consumers in arrears shall not be entitled for this rebate. The Sanctioned load / Connected load / Contract Demand should not exceed 75 kw / 100 HP. If the consumer exceeds his load / demand beyond this ceiling of 75 kw / 100 HP on more than two occasions in two billing months during the tariff period, the Licensee may insist on the consumer to avail HT supply. Meter Rent Meter Rent shall be charged as per the Schedule of Miscellaneous Charges. Part of a month will be reckoned as full month for purpose of billing. In case the cheque presented by the consumer is dishonoured, without prejudice to Licensee s rights to take recourse to such other action as may be available under the relevant law, a service charge of Rs. 500 per cheque shall be levied in addition to delayed payment surcharge Other charges as stated in schedule of miscellaneous charges shall also be applicable. Welding surcharge is applicable to installations with welding transformers, where the connected load of welding transformers exceeds 25% of the total connected load and where suitable capacitors of prescribed capacity have not been installed so as to ensure power factor of not less than 0.8 (80%) lagging. Welding Surcharge of 120 (One hundred and twenty) paise per unit shall be levied for the consumption of the entire installation during the month. For purposes of computing the connected load in kw of the welding transformers, a power factor of 0.6 (60%) shall be applied to the maximum current or kva rating of such welding transformers. Existing LT power consumer shall have to ensure that LT capacitor of proper rating is provided. In this regard, Madhya Pradesh Electricity Supply Code 2004 may be referred for guidance. It shall be the responsibility of the consumer to ensure that overall average power factor during any month is not less than 0.8 (80%) failing which the consumer shall be liable to pay low power factor surcharge on the entire billed amount against energy charges during the month at the rates given below: 1. For the consumer whose meter is capable of recording average power factor: M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 130

131 a. 1 % of energy charges for every 1% fall in power factor below 80% up to 75 %. b. Surcharge of 5% plus 1.25% of energy charges for every 1% fall in power factor below 75%. (j) (k) 2. For LT consumer having meter not capable of recording average power factor: The consumer shall have to ensure that LT capacitors of proper rating are provided and are in good working condition. In this regard, Madhya Pradesh Electricity Supply Code, 2004 may be referred for guidance. In case of failure to meet the above criteria, the consumer would be levied a low power factor surcharge of 10% on the entire billed amount against energy charges during the month and would be continued to be billed till such time the consumer meets the above criteria. Levy of welding / power factor surcharge as indicated hereinabove shall be without prejudice to the rights of the Licensee to disconnect the consumer s installation, if steps are not taken to improve the power factor by installing suitable shunt capacitors. Load Factor Concession: Following slabs of concessions shall be allowed for consumers billed under demand based tariff: Load factor Concession in energy charges For load factor above 25% 10 paise per unit concession on the normal energy charges for all energy and up to 30 % load factor on consumption over and above 25% load factor during the billing month contract demand For load factor above 30% and up to 40 % load factor on contract demand In addition to load factor concession available up to 30% load factor, concession at the rate of 20 paise per unit on the normal energy charges for all energy consumption over and above 30 % load factor during the billing month For load factor above 40% load factor on contract demand In addition to load factor concession available up to 40% load factor, concession at the rate of 30 paise per unit on the normal energy charges for all energy consumption over and above 40% load factor during the billing month The load factor shall be calculated as per the following formula: Units consumed (excluding from sources other than the Licensee) in the billing month X 100 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 131

132 No. of hours in the billing month X max. demand or contract demand in KVA (whichever is higher) X 0.8(or Actual whichever is higher) Note: The load factor (%) shall be rounded off to the nearest integer and the fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall be ignored. In case the consumer is getting power through open access, units set off from other sources, the net energy (after deducting units set off from other sources, from the consumed units) billed to consumer shall only be taken for the purpose of working out load factor. The billing month shall be the period in number of days between the two consecutive dates of meter readings taken for the purpose of billing to the consumer for the period under consideration as a month. (l) (m) (n) In case of any dispute on applicability of tariff on a particular LT category, the decision of the Commission shall be final and binding. The tariff does not include any tax, cess or duty, etc. on electrical energy that may be payable at any time in accordance with any law then in force. Such charges, if any, shall also be payable by the consumer in addition to the tariff charges and applicable miscellaneous charges. Delayed payment Surcharge for all categories: Surcharge at the rate of 1.25 % per month or part thereof on the amount outstanding (including arrears) will be payable if the bills are not paid up to due date subject to a minimum of Rs.5/- for total outstanding bill amount up to Rs. 500/- and Rs 10/- for amount of bill more than Rs.500/. The part of a month will be reckoned as full month for the purpose of calculation of delayed payment surcharge. The delayed payment surcharge will not be levied for the period after supply to the consumer is permanently disconnected. The surcharge shall be calculated from the bill date rather than due date. (o) Power Factor Incentive: If the average monthly power factor of the consumer is above 85%, incentive shall be payable for each one percent by which the average monthly power factor exceeds 85 % as follows: Power Factor Incentive payable Above 85% up to 95% 0.5 % (half percent) on the total amount of bill under the head of Energy Charges for each 1% increase in power factor. Above 95% In addition to power factor incentive up to 95%, incentive of 1 % (one percent) on the total amount of bill under the head of Energy Charges for each 1% increase in power factor. For this purpose, the average monthly power factor is defined as the ratio in percentage of total Kilo Watt hours to the total kilo volt Ampere hours recorded during the month. The power factor (%) shall be rounded off to the nearest integer and the fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall be ignored. (p) Use of mix loads in one connection: Unless otherwise permitted specifically in the tariff category, the consumer requesting for use of mix loads for different purposes shall be billed for the purpose for which the tariff is higher. However, pursuant to interim order dated in W.P.no.6006/2008 M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 132

133 (q) by the Hon ble High Court of MP, LV-1 domestic tariff shall be applicable to the houses of advocates having professional chambers until further orders of Hon ble High court of M.P. All conditions prescribed herein shall be applicable to the consumer notwithstanding the provisions, if any, contrary to the agreement entered into by the consumer with the licensee. 6 Additional conditions for Temporary Supply at LT: (a) (b) (c) (d) (e) (f) (g) (h) (i) (h) Temporary supply cannot be demanded by a prospective/ existing consumer as a matter of right but will normally be arranged by the licensee when a requisition giving due notice is made. The temporary additional supply to an existing consumer also shall be treated as a separate service and charged subject to following conditions. However service under Tatkal Scheme shall be made available within 24 hours according to the charges specified in the order of the Commission regarding Schedule of Miscellaneous Charges. Fixed Charge and energy charge for temporary supply shall be billed at 1.5 times the normal charges as applicable to relevant category if not specified otherwise specifically. Minimum Consumption as applicable to the permanent consumers shall also be applicable. The conditions shall be applicable on a monthly basis and for this purpose minimum consumption shall be computed on equivalent monthly basis and for temporary connections for less than one month, tariff minimum consumption shall be prorated for the period of supply. The billing demand shall be the demand/load sanctioned by the licensee for the period of supply commencing from the month of connection ending with the billing month. In case the billing demand/ connected load exceed the demand/load sanctioned then this excess demand/connected load shall be charged at 2 times of the tariff for temporary supply. The energy consumption for this purpose shall be computed on prorata basis. Estimated bill amount is payable in advance before serving the temporary connection subject to replenishment from time to time and adjustment as per final bill after disconnection. No interest shall be given to consumers for this advance payment. The Sanctioned load / connected load shall not exceed 75 kw / 100 HP. The month for the purpose of billing of charges for temporary supply shall mean 30 days from the date of connection. Any period less than 30 days shall be treated as full month for the purpose of billing. Connection and Disconnection Charges and other Miscellaneous charges shall be paid separately as may be specified in the Schedule of Miscellaneous Charges. Load factor concession shall not be allowed on the consumption for temporary connection. Power factor incentive/penalty shall be applicable at the same rate as applicable for permanent connection. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 133

134 ARR/Tariff petition FY 11 Proposed Tariff Schedule-HT ANNEXURE TO TARIFF PETITION FOR FINANCIAL YEAR PROPOSED TARIFF SCHEDULES FOR HIGH TENSION CONSUMERS Table of Contents M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 134

135 Tariff Category Page HV 1 HV 2 HV 3 Railway Traction Coal Mines Industrial and Non Industrial Industrial 3.2 Non-Industrial 3.3 Shopping Mall HV 4 HV 5 HV 6 HV 7 Seasonal Irrigation and Public Water Works 5.1 Public Water Works, Lift Irrigation Schemes and Group Irrigation 5.2 Other than Agricultural Users Bulk Residential Users Bulk Supply to Exemptees M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 135

136 Schedules for High Tension Consumers Tariff Schedule-- HV-1 RAILWAY TRACTION: --- Applicability: This Tariff shall apply to the Railways for Traction loads only. The contract demand shall be expressed in whole number only. Tariff: S. No. Category of consumer Fixed charges (Rs. / kva of billing demand) Energy charges (Paise / unit) kv kv Terms and Conditions: In order to attract faster electrification and growth of Railway network in the State, rebate of 10 % in Energy Charges for new Railway traction projects shall be allowed for a period of five years from the date of connection for such new projects for which agreements for availing supply from the Licensee are finalised during FY11. Guaranteed Minimum Consumption: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 20% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 20% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. Determination of Maximum Demand: The maximum demand of the supply in each month shall be four times the largest number of kilovolt ampere hours delivered at the point of supply during any consecutive 15 minutes during the month as per sliding window principle of measurement of demand. Other terms and conditions shall be as mentioned in the General Terms and Conditions of Tariff. Incentives and Penalties: Power Factor Penalty: If the average monthly power factor of the consumer falls below 90 percent, penalty will be payable for each one percent by which the average monthly power factor falls below 90 percent, at the rate of 1% (one percent) on the amount of bill under the head of Energy Charges. If the average monthly power factor of the consumer falls below 85 percent, the consumer shall be levied a penalty of 5% (five percent) 2% (two percent) for each one percent fall in his average M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 136

137 monthly power factor below 85 percent, on the total amount of bill under the head of Energy Charges. For this purpose, the average monthly power factor is defined as the ratio expressed in percentage of total Kilo Watt hours to the total kilo volt Ampere hours recorded during the billing month. This ratio (%) shall be rounded off to the nearest integer figure and the fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall be ignored. Notwithstanding what has been stated above, if the average power factor of a new consumer is found to be less than 90% at any time during the first 6 (six) months from the date of connection, the consumer shall be entitled to a maximum period of six months to improve it to not less than 90% subject to following conditions: This period of six months shall be reckoned from the date on which the average power factor was found for the first time to be less than 90%. In all cases, the consumer will be billed penal charges for low power factor, but in case the consumer maintains the average power factor in subsequent three months (thus in all four months) to not less than 90%, the charges on account of low power factor billed during the said six months period, shall be withdrawn and credited in next monthly bills. The facility, as mentioned herein, shall be available not more than once to new consumers whose average power factor is less than 90% at any time during 6 months from the date of connection. Thereafter, the charges on account of low average power factor, if found less than 90%, shall be payable as by any other consumer. Tariff Schedule HV - 2 COAL MINES: --- Applicability: This Tariff shall apply to the Coal Mines for power, ventilation, lights, fans, coolers, etc. which shall mean and include all energy consumed for coal mines and lighting in the offices, stores, canteen, compound lighting etc and the consumption for residential use therein. The contract demand shall be expressed in whole number only. Tariff: The sub-category of tariff shall be based on current monthly consumption as per following table: S. No. Sub category Monthly Fixed charges (Rs. / kva of billing demand per month) Coal Mines Energy charges for consumption up to 50% load factor (Paise / unit) Energy charges for consumption in excess of 50% load factor (Paise / unit) M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 137

138 220 kv supply kv supply kv supply kv supply Terms and Conditions: Minimum Consumption: Shall be as per the following: For supply at 220 / 132 kv: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 25% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 25% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. For supply at 33 / 11 kv: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 15% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 15% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. Load Factor Incentive: The consumer shall be eligible for Load Factor based incentive on energy charges as per the scheme given in General Terms and Conditions of High Tension Tariff. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and Conditions of High Tension tariff. Other terms and conditions shall be as specified under General Terms and Conditions of Tariff. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 138

139 Tariff Schedule HV - 3 INDUSTRIAL AND NON-INDUSTRIAL Applicability: The tariff 3.1 (Industrial) shall apply to all HT industrial consumers including mines other than coal mines for power light and fan etc. which shall mean and include all energy consumed for factory and lighting in the offices, main factory building, stores, canteen, residential colonies of industries, compound lighting and Dairy units where milk is processed to produce other end products of milk (other than chilling, pasteurization etc.). The tariff 3.2 (Non-Industrial) shall apply to establishments like Railway Stations, Offices, Hotels, Institutions, Bottling Plants and for construction purpose etc. having mixed load for power light and fan etc. which shall mean and include all energy consumed for lighting in the offices, stores, canteen, residential colonies, compound lighting etc. This shall also cover all other category of consumers, which are defined in LT non-domestic category. The tariff 3.3 (Shopping Malls) shall apply to establishment of shopping malls having group of non-industrial consumers as defined below and subject to the specific terms and conditions specified in this schedule. Shopping Mall shall be a multi-storeyed shopping centre limited to pedestrians facing a system of enclosed walkways with collection of independent retail stores, services and parking areas constructed and maintained by a management firm/ developer as a unit. Tariff: The tariff for the sub-categories shall be based on current monthly consumption as per following table: S. No. Sub-Category of consumer 3.1 Industrial Monthly Fixed Charges (Rs./KVA of billing demand per month) Energy charges for consumption up to 50% load factor (Paise / Energy charges for consumption in excess of 50% load 220 kv supply kv supply kv supply kv supply Non-Industrial 220 kv supply kv supply kv supply kv supply Shopping Malls M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 139

140 220 kv supply kv supply kv supply kv supply Terms and Conditions: Minimum Consumption: Shall be as per the following: For supply at 220 / 132 kv: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 25% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 25% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. The annual minimum consumption (kwh) for Rolling Mills & Educational Institute shall be equivalent to 15% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 15% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. For supply at 33 / 11 kv: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 15% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 15% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. Load Factor Incentive: The consumer shall be eligible for Load Factor based incentive on energy charges as per the scheme given in General Terms and Conditions of High Tension Tariff. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and Conditions of High Tension tariff. Rebate for supply through rural feeders: HT consumers of this category receiving supply through declared rural feeders shall be entitled to 10% rebate on Minimum Consumption (KWH) as specified above for respective voltage levels. Specific terms and conditions for shopping mall M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 140

141 The individual end user shall not be levied a rate which is exceeding non-domestic tariff in case of LT connection and HT non-industrial tariff in case of HT connection, as determined by the Commission. All end-users shall enter into a tripartite agreement with the Management Firm /developer and the licensee for availing supply of electricity in the shopping mall in order to get the benefit of the tariff under this category. Other terms and conditions shall be as specified under General Terms and Conditions of Tariff. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 141

142 Tariff Schedule HV - 4 SEASONAL: --- Applicability: This tariff will be applicable to such seasonal industries / consumers requiring energy for the production purposes for maximum continuous one hundred eighty days and for a minimum period of Ninety days. If the declared season/off-season spreads over two tariff periods, then the tariff for the respective period shall be applicable. The licensee shall allow this tariff to any industry having seasonal use only. The contract demand shall be expressed in whole number only. Tariff: Monthly Fixed Charges (Rs./KVA of billing demand per month) Energy charges for consumption up to 50% load factor (Paise / unit) Energy charges consumption in excess of 50% load factor (Paise / Category of consumers unit) During Season 33 KV supply KV supply During Off-Season 33 KV supply Rs. 275 on 10% of contract demand or actual recorded demand during the season, whichever is higher 11 KV supply Rs. 260 on 10% of contract demand or actual recorded demand during the season, whichever is higher 570 i.e. 120% of seasonal energy charges 588 i.e. 120% of seasonal energy charges Not applicable Not applicable for Terms and Conditions: Minimum Consumption: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 11% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 11% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 142

143 Load Factor Incentive: The consumer shall be eligible for Load Factor based incentive on energy charges as per the scheme given in General Terms and Conditions of High Tension Tariff. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and Conditions of High Tension tariff. The consumer has to declare months of season and off season for the tariff year within 60 days of issue of tariff order and inform the same to the licensee. In case, no declaration is made by the consumer during said 60 days period, consumer shall be billed for normal industrial tariff of respective voltage level for the whole tariff year The seasonal period once declared by the consumer cannot be changed during the tariff year This tariff is not applicable to composite units having seasonal and other category loads. The consumer will be required to restrict his monthly off season consumption to 15% of highest of the average monthly consumption of the preceding season. In case this limit is exceeded in any off season month, the consumer will be billed under HV-3.1 Industrial Schedule for the whole tariff year The consumer will be required to restrict his maximum demand during off season to 30 % of the contract demand. In case the maximum demand recorded in any month during the declared offseason exceeds this limit, the consumer will be billed under HV-3.1 Industrial Schedule for the whole tariff year Other terms and conditions shall be as per the General Terms and Conditions of Tariff. Tariff Schedule HV - 5 HT IRRIGATION AND PUBLIC WATER WORKS Applicability: The Tariff Category HV-5.1 shall apply to supply of power to lift irrigation schemes, group irrigation, Public Utility Water Supply schemes, sewage treatment plants /sewage pumping plants and for energy used in lighting pump house. Note: Private water supply scheme, water supply schemes run by institutions for their own use/employees/townships etc. will not fall in this category but billed under the appropriate tariff category to which such institution belongs. In case water supply is being used for two or more different purposes then the highest tariff shall be applicable. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 143

144 The tariff category HV-5.2 shall apply to supply of power to other than agriculture pump connections i.e. the connection for hatcheries, poultry farms, cattle breeding farms, grasslands, vegetables/ fruits/ floriculture/ mushroom growing units etc. and dairy ( for those dairy units where only extraction of milk and its processing such as chilling, pasteurization etc. is done). However, in units where milk is processed to produce other end products of milk, billing shall be done under HV-3.1 (industrial) category. Tariff: No. Sub-Category Monthly Fixed charges (Rs. / KVA of billing demand per month) 5.1 Public Water Works, Group Irrigation and Lift Irrigation Schemes Energy Charges (paise per unit) 132 kv supply kv supply kv supply Other than agricultural use 132 kv supply kv supply kv supply Terms and Conditions: Minimum Consumption: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 9% load factor of the highest Maximum Demand recorded during the year or the contract demand, whichever is higher irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 9% load factor on contract demand. The deficit if any from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as specified in General Terms and Conditions of High Tension tariff. Incentive for adopting Demand Side Management An 5 % on energy charges shall be given on installation of energy saving devices (such as ISI energy efficient motors for pump sets) to the satisfaction of the licensee. Incentive will only be admissible if full bill is paid within due dates failing which all consumed units will be charged at normal rates as the case may be. Incentive will only be admissible from the M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 144

145 month following the month of installation and its verification by a person authorized by the licensee. The licensee is required to arrange wide publicity for above incentive. The licensee is required to place quarterly information regarding incentives provided on its web site Other terms and conditions shall be per the General Terms and Conditions of Tariff. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 145

146 Tariff Schedule HV - 6 BULK RESIDENTIAL USERS Applicability: The tariff category HV-6.1 is applicable for separate supply to industrial or any other township (e.g. University or academic institutions), registered group housing societies (excluding consumers covered under tariff category 6.2), residential colonies desirous of taking HT supply (including townships of industries, hospitals, MES and Border villages) for domestic purpose only such as lighting, fans, heating etc. provided that the connected load for essential common facilities such as Non-domestic supply in residential area, street lighting shall be within the limits specified hereunder :- (a) Water supply & Sewage pumping, Hospital - No limit (b) Non-domestic/Commercial and other General purpose put together -10 % of total connected load. The tariff category HV-6.2 is applicable for supply to Registered Cooperative Group Housing Societies as per MOP notification no. S.O.798 (E) dated 9th June The terms and conditions for this category of consumers shall be applicable as per the provisions of Electricity Supply Code, 2004 as amended. Tariff: S. No. Category of consumers Monthly Fixed Charges (Rs. / KVA of billing demand per month Energy charges (Paise / unit) 1 For Tariff Sub-Category kv supply kv supply kv supply For Tariff Sub-Category kv supply kv supply kv supply Terms and Conditions: Minimum Consumption: The consumer will guarantee a minimum annual consumption (kwh) equivalent to 10% load factor of the contract demand irrespective of whether any energy is consumed or not during the year. An average power factor of 0.90 or the actual whichever is higher will be applied for the calculation of corresponding units at 10% load factor on contract demand. The deficit if any M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 146

147 from the actual consumption (i.e. minimum guaranteed consumption actual consumption) shall be charged at the prevailing rate of Energy Charges as Tariff minimum difference. Specific terms and conditions for an authorized private residential colony developed by a registered colonizer The individual end user shall not be levied a rate which is exceeding non-domestic/ domestic tariff in case of LT connection, as determined by the Commission. All end-users shall enter into a tripartite agreement with the Management Firm /developer and the licensee for availing supply of electricity in the colony premises in order to get the benefit of the tariff under this category. Other terms and conditions shall be as specified under General Terms and Conditions of Tariff. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 147

148 Tariff Schedule HV - 7 BULK SUPPLY TO EXEMPTEES Applicability: This Tariff shall apply to Rural Co-operative Societies, any local authority, Panchayat Institution, users association, Co-operatives, non-government organisations or franchisees i.e. consumers who have been granted exemption permission under section 13 of the Electricity Act 2003 (36 of 2003). Tariff: S. No. Sub-Category of consumers Fixed Charges (Rs. / kva of billing demand per month (a) (b) (c) Bulk Supply to Exemptees under section 13 of Electricity Act 2003 Energy Charges (paise per unit) Rural Co-operative Societies having mix use Mixed domestic and agriculture use in rural areas notified by State Government (maximum 10 % non domestic use permitted) Mixed domestic and non domestic use (limited to 10 % of total) in urban areas Terms and Conditions: Supply shall be given generally at 33 kv and above. However, the Rural Co-operative Societies may allow availing connections at 11 kv, subject to technical feasibility, at more than one point, but in such case, metering and billing will be done for each point of supply separately. The exemptees will have to limit their charges recoverable from individual consumers to the tariff specified for respective category. Other terms and conditions shall be as specified under General Terms and Conditions of Tariff. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 148

149 GENERAL TERMS AND CONDITIONS OF HIGH TENSION TARIFF The following terms and conditions shall be applicable to all HT consumer categories subject to specific terms and conditions for that category as mentioned in the tariff schedule of respective category: Character of Service: 1.1 The character of service shall be as per Madhya Pradesh Electricity Supply Code, Point of Supply: The Point of supply shall be as follows: (a) The power will be supplied to the consumers ordinarily at a single point for the entire premises. (b) In case of Railway Traction, the supply at each sub-station shall be separately metered and charged. (c) In cases of coal mines and Rural Co-operative Societies, the power will be supplied ordinarily at a single point for the entire premises. The power may, however, be supplied on the request of the consumer at more points than one subject to technical feasibility, but in such cases, metering and billing will be done for each point of supply separately. Determination of Demand The contract demand shall be expressed in whole number only. Declared rural feeder means feeder declared by the Distribution Licensee for receiving supply as per rural discipline under load regulatory measures. The maximum demand of the supply in each billing month shall be four times the largest number of kilovolt ampere hours delivered at the point of supply during any consecutive 15 minutes during the month as per sliding window principle of measurement of demand. Billing demand: The billing demand for the billing month shall be the actual maximum kva demand of the consumer during the billing month or 90% of the contract demand, whichever is higher. The billing demand shall be rounded off to the nearest integral figure and the fraction of 0.5 or above will be rounded off to next higher figure and the fraction of less than 0.5 shall be ignored. Tariff minimum consumption shall be billed as follows : The consumer will guarantee annual minimum consumption (KWH) based on percentage load factor specified for his category, irrespective of whether any energy is consumed or not during the year. The consumer shall be billed monthly minimum consumption (KWH) worked out on prorate basis of annual monthly minimum consumption specified for his category each month in case the actual consumption is less than monthly minimum consumption. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 149

150 During the tariff year up to end of the month in which the annual minimum guaranteed consumption is achieved, no further billing of monthly minimum consumption shall be done in subsequent months of the tariff year. In the month in which cumulative actual consumption of the consumer exceeds the annual minimum guaranteed consumption and if the consumer was charged in earlier months for monthly minimum consumption on account of his actual consumption being less, then such tariff minimum difference consumption shall be adjusted in the last bill of the tariff year. Tarff minimum consumption shall also be applicable on the excess demand for a particular billing month. Corresponding consumption on the basis of excess demand in a particular billing month shall not be accounted for the purpose of any adjustment. Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paise shall be ignored and 50 paise upwards shall be rounded of to next Rupee. Rebate / penalties Power Factor Incentive If the average monthly power factor of the consumer is above 95%, incentive shall be payable for each one percent by which the average monthly power factor is above 95% as follows: Power Factor Above 95% Incentive payable 1.0 % (one percent) for each 1% increase in Power Factor on the total amount of bill under the head of Energy Charges. The above Power factor incentive shall be available for the consumption corresponding to contract demand only. The consumption corresponding to excess demand shall not be eligible for PF Incentive. Load factor calculation and load factor incentive (i) The load factor shall be calculated as per following formula: Units consumed (excluding units received from sources other than the Licensee) in a billing month X 100 Load factor (%) = No. of hours in the billing month X max. demand or contract demand in KVA,whichever is higher X 0.9 or actual PF which ever is higher Note: The load factor (%) shall be rounded off to the nearest integer and the fraction of 0.5 or above will be rounded to next integer and the fraction of less than 0.5 shall be ignored. In case the consumer is M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 150

151 getting power through open access, units set off from other sources, the net energy (after deducting units set off from other sources, from the consumed units) billed to consumer shall only be taken for the purpose of working out load factor. The billing month shall be the period in number of days between the two consecutive dates of meter readings taken for the purpose of billing to the consumer. (ii) Load factor incentive shall be calculated as per following scheme and shall be given to those categories of consumers where it is specified: LF Range Incentive Computation of % incentive on energy charge (LF=x %) LF <= 50% No Incentive = %<LF<=70% Incentive of 0.6% for every 1% increase in LF above 50% on energy charges for incremental consumption above 50% load factor 70%<LF<=80% Incentive of 12% Plus 0.2% for every 1% increase in LF above 70% on energy charges for incremental consumption above 50% load factor LF>80% up to 100% Incentive of 14% Plus 0.1 % for every 1% increase in LF above 80% on the energy charges for incremental consumption above 50% load factor = (x-50)*0.60 = (x-70)*0.20 = 14+ (x-80)*0.10 The above load factor incentive shall be available for the consumption corresponding to contract demand only. The consumption corresponding to excess demand shall not be eligible for LF Incentive. For advance payment made before commencement of billing period for which bill is prepared, a rebate of 1 % per month on the amount which remains with the licensee at the end of billing month (excluding security deposit) shall be credited to the account of the consumer in subsequent months bill after adjusting any amount payable to the licensee. An incentive for prompt cash of the bill amount (excluding electricity duty and Cess) shall be given in case the payment is made at least 7 days in advance of the due date of payment where the current month billing amount is equal to or greater than Rs. Five lac. The consumers in arrears shall not be entitled for this rebate. Time of Day Surcharge / Rebate: This scheme is applicable to the categories of consumers where it is specified. This is applicable for different periods of the day i.e. normal period, peak load and off-peak load period. The surcharge / rebate on energy charges according to the period of consumption shall be as per following table: S. No. Peak / Off-peak Period Surcharge / Rebate on energy charges on energy consumed during the corresponding period M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 151

152 1. Evening peak load period (6PM to 10 PM) 2. Off peak load period (10 PM to 6 AM next day) 15% of Normal rate of Energy Charge as Surcharge 7.5 % of Normal rate of Energy Charge as Rebate Note: Fixed charges shall always be billed at normal rates i.e. ToD Surcharge / Rebate shall not be applied on Fixed Charges Power Factor Penalty If the average monthly power factor of the consumer falls below 90 percent, the consumer shall be levied a 1% (one percent), for each one percent fall in his average monthly power factor below 90 percent, on total amount of bill under the head of Energy Charges. If the average monthly power factor of the consumer falls below 85 percent, the consumer shall be levied a penalty of 5% (five percent) 2% (two percent) for each one percent fall in his average monthly power factor below 85 percent., on the total amount of bill under the head of Energy Charges. Should the average monthly power factor fall below 70%, the Licensee reserves the right to disconnect the consumer s installation till steps are taken to improve the same to the satisfaction of the Licensee. This is, however, without prejudice to the levy of penalty charges for low power factor in the event of supply not being disconnected. For this purpose, the average monthly power factor is defined as the ratio expressed in percentage of total Kilo Watt hours to the total kilo volt Ampere hours recorded during the billing month. This ratio (%) shall be rounded off to the nearest integer figure and the fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall be ignored. Notwithstanding what has been stated above, if the average monthly power factor of a new consumer is found to be less than 90% in any month during the first 6 (six) months from the date of connection, the consumer shall be entitled to a maximum period of six months to improve it to not less than 90% subject to following conditions: (a) (b) (c) This period of six months shall be reckoned from the month following the month in which the average power factor was found for the first time to be less than 90%. In all cases, the consumer will be billed the penal charges for low power factor, but in case the consumer maintains the average monthly power factor in subsequent three months (thus in all four months) to not less than 90%, the charges on account of low power factor billed during the said six months period, shall be withdrawn and credited in next monthly bills. The facility, as mentioned herein, shall be available not more than once to new consumer whose average monthly power factor is less than 90% in any month during 6 months from the date of connection. Thereafter, the charges on account of low average power factor, if found less than 90%, shall be payable as applicable to any other consumer. Additional Charges for Excess Demand M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 152

153 i. The consumers shall at all times restrict their actual maximum demand within the contract demand. In case the actual maximum demand in any month exceeds the contract demand, the tariffs given in various schedules shall apply to the extent of the contract demand only. The consumer shall be charged for excess demand on energy charges and fixed charges and while doing so, all the other terms and conditions of tariff (Excluding PF & LF Incentive) shall also be applicable on the said excess demand. The excess demand so computed in any month shall be charged at the following rates from all consumers. ii. Energy charges for excess demand: The consumer shall pay 2 times the tariff for energy charges for consumption corresponding to excess demand in case the maximum demand recorded exceeds the contract demand. iii. Fixed charges for excess demand: The consumer shall pay 2 times the tariff for fixed charges for excess demand over and above contract demand. iv. The excess demand computed in any billing month will be charged along with the monthly bill and shall be payable by the consumer. v. The billing of excess demand at two times the normal tariff applicable to consumer is without prejudice to the Licensee s right to discontinue the supply in accordance with the provisions contained in the Electricity Supply Code, Delayed Payment Surcharge Surcharge at the rate of 1.25 % per month or part thereof on the amount outstanding (including arrears) will be payable if the bills are not paid up to due date. The part of a month will be reckoned as full month for the purpose of calculation of delayed payment surcharge. The delayed payment surcharge will not be applicable after supply to the consumer is permanently disconnected. The surcharge shall be calculated from the bill date rather than due date. Service Charge for Dishonoured Cheques In case the cheques presented by the consumer are dishonoured, a service charge at the rate of Rs. 1000/- per cheque shall be levied in addition to delayed payment surcharge as per rules. This is without prejudice to the Licensee s rights to seek relief in accordance with any other applicable law. Temporary supply at HT If any consumer requires supply for a temporary period, the temporary supply shall be treated as a separate service and charged subject to the following conditions: Temporary supply cannot be demanded by a prospective/ existing consumer as a matter of right but will normally be arranged by the licensee when a requisition giving due notice is made. Fixed Charges and Energy Charges shall be charged at 1.5 times the normal tariff. The fixed charge shall be recovered for the full billing month or part thereof. The consumer shall guarantee minimum consumption (KWH) as applicable to the permanent consumers on pro-rata basis based on number of days. The billing demand shall be the demand requisitioned by the consumer or the maximum demand during the period of supply commencing from the month of connection ending with the billing month, whichever is higher. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 153

154 The consumer shall pay the estimated full charges in advance, before serving the Temporary Connection subject to replenishment from time to time and adjustment as per final bill after disconnection. No interest shall be given on such advance payment. The consumer shall pay rental for the metering system. Connection and Disconnection Charges shall also be paid. In case of existing HT consumer, the temporary connection may be given through existing permanent HT connection on following methodology of assessment : (i) Deemed contract demand for the month shall be the sum of contract demand and the demand sanctioned under temporary supply. (ii) Deemed contract demand for the month to be billed for the fixed charge= C.D.(existing) on normal tariff for permanent connection + C.D. for temporary connection on normal tariff for temporary supply. (iii) Billing demand for the month shall be as per tariff order for the deemed contract demand for that month. (iv) Consumption during the month may be billed for Permanent connection (A) Contract demand (Permanent) A = X Total consumption Deemed contract demand or Deemed billing demand which ever is more Consumption of Temporary connection = Total consumption - (A) (v) The consumption worked out above for temporary connection shall be billed at 1.5 times the normal energy charges. (v) The demand in excess of deemed contract demand as calculated above at (g) (i) shall be treated as Excess Demand. For billing purposes such Excess demand, if any, in any month shall be treated as pertaining to temporary connection load and shall be charged at 2 times the normal fixed charges & energy charges of temporary connection. Additional charges for excess demand recorded during the period of temporary connection shall be calculated as given below : Fixed charges for excess demand = fixed charges per kva for temporary connection * excess demand* 2 Energy charges for excess demand = energy charges per unit for temporary connection * 2*(excess demand/deemed contract demand)*total consumption Load factor concession shall not be allowed on the consumption for temporary connection. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 154

155 Power factor incentives/penalties, minimum consumption and the condition for Time of Day Surcharge/ rebate shall be applicable at the same rate as for permanent connection. FCA/VCA charges In addition to the normal tariff, FCA/VCA/Expensive Power Charges shall also be applicable as per the terms and conditions determined by the Commission. Other Terms and Conditions The foregoing tariffs for different supply voltages are applicable to the exiting consumers and prospective consumer subject to other terms and condition of supply code The deviation, if any, in respect of provisions of supply code 2004 regarding supply voltage and maximum/minimum contract demand on account of technical reasons may be permitted by the licensee after obtaining specific approval of the Commissionon merits. The existing consumers having contract demand /sanctioned load/connected load more than 75 kw/100hp and availing supply on LT shall pay the transformer rental charges and 3% transformation losses along with the appropriate applicable HT tariff. The existing 11kV consumers with contract demand exceeding 300 kva who want to continue to avail supply at 11kV at his request, shall be required to pay additional charge at 7.5 % on the total amount of Fixed Charges, Energy Charges and VCA charges, if any billed in the month. The existing 33kV consumers with contract demand exceeding kva who want to continue to avail supply at 33kV at his request, shall be required to pay additional charge at 5% on the total amount of Fixed Charges, Energy Charges and VCA charges, if any billed in the month. The existing 132kV consumers with contract demand exceeding kva who want to continue to avail supply at 132kV at his request, shall be required to pay additional charge at 3% on the total amount of Fixed Charges, Energy Charges and VCA charges, if any billed in the month. Meter rent shall be charged as per schedule of Miscellaneous Charges. Part of a month will be reckoned as full month for purpose of billing. The tariff does not include any tax or duty, etc. on electrical energy that may be payable at any time in accordance with any law then in force. Such charges, if any, shall be payable by the consumer in addition to the tariff charges. In case any dispute regarding interpretation of this tariff order and/or applicability of this tariff arises, the matter shall be referred to Commission and the decision of the Commission will be final and binding. In case a consumer at his request availing supply at a voltage higher than the standard supply voltage as specified under relevant category, he shall be billed at the rates applicable for actually availed supply voltage levied and no extra charges shall be charged on account of higher voltage. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 155

156 All consumers to whom fixed charges are applicable are required to pay fixed charges in each month irrespective of whether any energy is consumed or not. All conditions prescribed herein shall be applicable to the consumer notwithstanding the provisions, if any, contrary to the agreement entered into by the consumer with the licensee. M.P. Poorv Kshetra Vidyut Vitaran Company Ltd., Jabalpur 156