‘Telephone No. 08022243926 Fax Website: www.kptel.com KPTCL/B28(a)/32543/2012-13 - 08022110134 Email ID: dgmtkptel@rediffmail.com KARNATAKA POWER TRANSMISSION CORPORATION LIMITED CIN No. U40109KA1999SGC025521 Corporate Office Kaveri Bhavan, K.G Road, Bengaluru-560 009 Date: 01.04.2019 CIRCULAR Sub: Procedure for revision of O&M charges as per KERC Order dated 14.12.2018 -reg. Ref: 1) T.O Board Order of even No. dated 17.08.2012. 2) T.O Amendment of even No. dated 25.03.2017. 3) T.O Letter of even No. dated 09.05.2018. 4) T.O. Circular No. FA(A&R)/KCO-21/6936/2013-14 dated 12.06.2018. sobs Hon'ble KERC has issued Order on 14.12.2018, in the matter of collection of O&M charges by KPTCL from IPPs. Action to be taken by KPTCL based on the directions given in KERC Order is as follows. 1, Since Order is effective from 17.08.2012, KPTCL has to revise the O&M charges already demanded from FY 13 to FY 19 at the rates mentioned in KERC Order dated 14.12.2018 and difference if any, needs to be collected or refunded /adjusted as the case may be. 2. KPTCL shall collect 1.5% of the Capital cost of Terminal Bay as O&M charges for the first Financial Year of operation/commission(base year). Capital cost shall be computed considering the equipment cost excluding land cost. Capital cost means Equipment Cost, Erection Cost and Civil portion of works cost as per Schedule of Rates prevailing at the time of handover of assets plus applicable taxes. In the absence of Schedule of Rates, value indicated in the estimate against Equipment Cost, Erection Cost and Civil portion of works cost plus applicable taxes need to be considered. 3. Value of the asset on Base year is to be considered for computing O&M charges and as also the escalation. Base year for the assets(Terminal Bay or Lines) that existed earlier to 17.08.2012 is to be reckoned as FY-13 and the base year for the assets that are put to use after 17.08.2012 is the respective year of commissioning. wad, t2 4. KERC has directed KPTCL to adopt escalation rate at 5.72% per annum on the O&M charges arrived for the base year, with effect from 17.08.2012. Illustration for computing escalation of O&M charges at 5.72% on the O&M charges arrived for the base year is shown in Table I below. 5. Hitherto, there were no specific guidelines from KERC for taking action against defaulting IPPs/Generators, who have failed to pay O&M charges regularly on time. Henceforth, concerned accounting units shall initiate action against defaulting IPPs by filing an application before KERC u/s 142 of Electricity Act 2003 through Financial Adviser (Regulatory Affairs), KPTCL. 6. Simple Interest at the rate of 6.25% per annum on defaulted amount shall be levied in future, based on the billing period, 7. Line Terminal Bays are to be operated and maintained by KPTCL only, hence O&M charges shall have to be collected from IPPs as per KERC order dated 14.12.2018 for maintenance of Terminal Bays, besides the IPPs/Generators have to meet the cost of equipment or spares required for replacement of failed or defective equipment. 8. KPTCL shall collect O&M charges for maintenance of dedicated Transmission Lines at the rates indicated in the KERC Order, only in cases where the IPPs/Generators have given their consent in writing. In cases where the generators themselves are maintaining the Lines, O&M charges need not be collected. 9. All Accounting Units are required to demand annual O&M charges before 10% of April of current Financial Year in advance. The O&M charges shall be paid by IPPs within 30 days from the date of demand notice, failing which the interest becomes payable. 10. In case of new assets commissioned during the year, the O & M charges for the year shall be collected on prorata basis for the balance period of the Financial Year. If the installation is commissioned on 31st March, there is no need to collect O&M charges for the commissioned year. ‘The accounting units shall revise the demand raised from FY-13 to FY-19 at the rates mentioned in KERC Order dated 14.12.2018 and difference if any, needs to be collected or refunded/adjusted by raising demand or by withdrawing the demand already raised, as the case may be and continue to collect the O&M charges as per the Orders of the KERC. od3 Ilustration for computing escalation of O&M charges at 5.72% on the O&M charges arrived for the base year is shown below Table I Capital cost : Rs.10,00,000/- Date of commission : 2009-2010 ] O&M charges at 1.5% of Capital cost:_| Rs.15,000/- | [O&M charges already demanded by[O&M charges to be revised by | accounting Units considering the| accounting Units considering _ the escalation at 12% escalation at 5.72% on O&M charges for ____| the base year. | O&M — | Escalation | Escalation || Year charges | at 12% Revised at 5.72% 2012-13 | 15 000 1800 O&M on base 2013-14 | 16 800 2016 Sear charges. fear 2014-15 | 18 816 2258 7 2015-16 | 21 074 2529 oe 15 000 858 2016-17 | 23 603 2.832 rh eres a [2017-18 | 26 435, 3172 ure 2018-19 | 29 607 3553) 15 16 716 858 2015- 16 17574] __858| 2016- 17 18 432 858 2017- 18 19 290 858 2018- i 19 20 148 858 An excel sheet format for revising the demand already made is hosted in www.kptel.com under e-prasarana along with the Circular. Accounting Units shall revise the O&M Charges with effect from 17.08.2012 using the excel sheet provided in ¢-prasarana and pass necessary JV based on the outcome of excel sheet and submit the same to Financial Adviser(A&R), KPTCL for ensuring the correctness before incorporating JV in the books of accounts. Procedure for regularisation of GST on O&M charges due to revision of O&M charges as per KERC order Dt. 14.12.2018 under GST Regime (From 1,07.2017 to 31.03.2019). where revised O&M Charges are lesser than Original O&M charges already demanded.ode a) Credit Note as against each invoice (already demanded) per Annexure-2 is to be issued to the firm with relevant information noted in the Specimen Credit Note Format. b) Example: SLNo. PARTICULARS ‘Amount (Rs,) O&M Charges (Revised ) as per Circular 1_| Dated.12.6.2018 cae 30000 ‘O&M charges to be claimed as per KERC 2__| order 14.12.2018 20000 3__| Difference - Taxable value of Credit Note 10000 4 | CGST (9% on Taxable value) [ 900 | 5_|[SGST [9% on Taxable value) _ 900. 6 | Total for credit note to be issued 11800 | ©) When Original O&M charges against invoices have already been paid by the firm, action is to be taken to adjust the excess O&M charges paid as per the procedure indicated above. 4) When Revised O&M charges against invoices have not been paid by the firm, the same shall be informed to GST Cell for taking further needful action, WO \N9 Deputy General Manager (Tech.) KPTCL To: 1) All the Chief Engineers/Financlal Advisers, KPTCL 2) All the Superintending Engineers/Controllers, KPTCL, 3) The D.G.M(Personnel), Corporate Office, KPTCL, Kaveri Bhavan, 4) The Superintending Engineer(Bl), IT&MIS, Computer Section for hosting on e- prasarana. 5) All the Executive Engineers/DCAs, KPTCL 6) The Executive Engineer/Deputy Controller, HRD Centre, KPTCL, Bengaluru. 7) All the Accounts Officers, KPTCL 8) The Manager (IM), KPTCL, Kaveri Bhavan, Bengaluru. 9) The Manager (Establishment-II), KPTCL, Kaveri Bhavan, 10)The Manager (Cash & Accounts), KPTCL, Kaveri Bhavan, 11)All the Accounts Officers (internal Audit)/AAOs(internal Audit) KPTCL, 12)The Senior Audit Officer, KPTCL, Bengaluru, 13) EA to Director(Finance) /Director(Transmission), KPTCL. 14)SPS to Managing Director, KPTCL, Bengaluru 15)SPS to Director(Finance) /Director(Transmission)/ Director(A&HR) KPTCL, 16)PS to Company Secretary, KPTCL. 17)R&R to AAO-I/Sr. Assts/Assts of Accounts Section/ M.F® 2t