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Distribution Tariff - Thesis
Distribution Tariff - Thesis
MASTER OF TECHNOLOGY
IN
(ENERGY ENGINEERING)
by
SHAMBHAVI MISHRA
(Reg. No. CUJ/I/2014/IEE/023)
Under the guidance of
Prof. S.K.Samdarshi
MAY –2019
Central University of Jharkhand
(A Central University established by an Act of Parliament of India in 2009)
Centre for Energy Engineering
Brambe, Ranchi-835205, Jharkhand
Certificate
We hereby recommend that the thesis prepared under our supervision by SHAMBHAVI MISHRA entitled
“Determination of Distribution Tariff for Electricity for The State of Jharkhand” be accepted in partial fulfillment
of the requirements for the degree of Master of Technology in Energy Engineering.
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Central University of Jharkhand
(A Central University established by an Act of Parliament of India in 2009)
Centre for Energy Engineering
Brambe, Ranchi-835205, Jharkhand
CERTIFICATE OF APPROVAL
The foregoing thesis by Shambhavi Mishra (Registration Number: CUJ/I/2014/IEE/023) is hereby approved
as a creditable study carried out and presented in a manner satisfactory to warrant its acceptance as a pre-
requisite to the degree for which it has been submitted. It is understood that by this approval the undersigned
do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but
approve only for the purpose for which it is submitted.
Committee On
Evaluation of thesis
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DECLARATION BY THE CANDIDATE
I, SHAMBHAVI MISHRA, hereby declare that this thesis entitled “Determination of Distribution Tariff for
Electricity for the State of Jharkhand” is submitted to Department of Energy Engineering, Central University
of Jharkhand, Ranchi, Jharkhand, India in partial fulfilment of the requirements for the degree of Master of
Technology in Energy Engineering. This has been prepared by me and the same has not been/is not being
submitted to any other institution.
SHAMBHAVI MISHRA
CUJ/I/2014/IEE/023
Date :
Place :
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ACKNOWLEDGEMENT
The completion of any project brings with it a sense of satisfaction, but it never completes without thanking
those people who made it possible and whose constant support has crowned our efforts with success. One
cannot even imagine the power of the force that guides us all and neither can we succeed without
acknowledging it. My deepest gratitude to Almighty God for holding our hands and guiding us throughout our
lives.
I would like to express my profound gratitude to Dr. S. K. Samdarshi , Head of the Department, Department
for Energy Engineering, Central University of Jharkhand for encouraging and inspiring me to carry out the
project.
I would like to thank my project mentor respected chairperson Dr. Arbind Prasad. I would like to thank Shri.
R. N. Singh, Shri A.K. Mehta for guiding us throughout our project. Then I would also like to thank Mr.
Ashwin G and Mr. Anil Kumar, whose valuable guidance, suggestions and their instructions have served as
the major contribution towards the completion of the project.
I am extremely happy to acknowledge and express my sincere gratitude to my parents for their constant support
and encouragement and last but not the least, friends and well-wishers for their help and cooperation and
solutions to problems during the course of the project.
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Abstract
Tariff system takes into consideration many factors to calculate the total cost of electricity. The electrical power
system mainly consists of Generation, Transmission and Distribution. The electric power distribution is the
last stage in the delivery of electric power and it is directly linked to the consumers as it carries electricity from
the transmission system to individual consumers. In the revenue chain as the distribution system sits at the end
therefore it recovers the price from the consumers. Hence the issues of collection efficiency and transmission
and distribution losses are more. All these leads to revenue gaps year upon year. To manage these revenue
gaps, commission every year releases tariff rates for various category of consumers, so that on one hand
distribution licensee recovers all the revenue gaps and on the other hand consumers don’t get burdened with
high tariff rates.
Here in this report the methodology of calculation of distribution tariff is shown, keeping in mind the
regulations formulated by the Central Electricity Regulatory Commission (CERC) and Jharkhand State
Electricity Regulatory Commission (JSERC) as basis of assumptions in this work. With the help of these
regulations, firstly the Aggregate Revenue Requirement (ARR) of Retail Supply Business of JVBNL for the
FY 2018-19 has been calculated. Then the tariff of various categories for the FY 2018-19 has been calculated.
Tariff was calculated seeing the past year trends that have been followed. For the tariff calculations few
assumptions were made by consulting experts of this field who themselves were involved in making of the
tariff order of previous year. Depending on these assumptions category wise distribution of consumers,
connected load (kW), consumption (MU) was done. Based on these data, the tariff was calculated. Tariff rates
should be fixed in such way that the distribution licensee recovers the Aggregate Revenue Requirement i.e.
main motive is to keep revenue gap minimized. Then the tariff hike was found i.e. the percentage increase in
total revenue of FY 2018-19 when compared with the last year revenue of FY 2017-18.
Then further analysis of changes brought in the present tariff structure i.e. for the FY 2019-20 is done in this
report. The main issue in the tariff structure was “multiple categories and tariff slabs”, which has now been
reduced to some extent.
Another issue is the absence of cost reflective tariffs leading to large revenue gaps. In order to recover these
gaps, consumers are burdened with extra carrying cost. Cross subsidies are challenges to be overcome as one
category of consumer is over-burdened in order to relieve other category of consumer. Hence improvements
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have been done in the present approved tariff and regulations have also been improvised so as to eliminate or
reduce the earlier drawbacks which are discussed in this report.
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Table of Contents
Contents
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3.2.1. Calculation of RPO and Approved Cost for the purchase of REC ............................................................. 17
3.2.2. Calculation OfPower Purchase Quantum ................................................................................................. 20
3.3. Energy Requirement and Energy Availability ................................................................................................... 22
3.3.1. Calculation of Energy Requirement .......................................................................................................... 23
3.3.2. Calculations of energy balance sheet ....................................................................................................... 24
3.3.3. Calculation of Revenue from sale of surplus power ................................................................................. 26
3.4. Intra-State Transmission Charges ..................................................................................................................... 27
3.4.1. Calculation of Intra-State Transmission Charges...................................................................................... 27
3.5. Capital Expenditure and Capitalization ............................................................................................................ 27
3.5.1. Calculation of Scheme wise capital expenditure ...................................................................................... 28
3.5.2. Calculations of GFA ................................................................................................................................... 29
3.5.3. Calculation of Capital Work In Progress ................................................................................................... 30
3.6. Consumer Contribution, Grants and Subsidies ................................................................................................ 30
3.6.1. Calculation of Scheme wise grants ........................................................................................................... 31
3.6.2. Calculation of Consumer Contribution and Grants .................................................................................. 31
3.6.3. Calculation of Sources of funding of GFA ................................................................................................. 32
3.7. Operation & Maintenance Expenses ................................................................................................................ 33
3.7.1. Calculation of Operation & Maintenance Cost......................................................................................... 34
3.8. Depreciation ..................................................................................................................................................... 34
3.8.1. Calculation of Depreciation ...................................................................................................................... 35
3.9. Interest and finance charges ............................................................................................................................ 35
3.9.1. Calculation of Interest on Loan................................................................................................................. 36
3.10. Interest on Security Deposits ....................................................................................................................... 36
3.10.1. Calculation of Interest on Consumer Security Deposit ............................................................................ 37
3.11. Interest on Working Capital.......................................................................................................................... 37
3.11.1. Calculation of IOWC.................................................................................................................................. 38
3.12. Return on Equity ........................................................................................................................................... 39
3.12.1. Calculation of ROE .................................................................................................................................... 39
3.13. Non-Tariff Income......................................................................................................................................... 40
3.14. Summary of ARR for the FY 2018-19 ............................................................................................................ 40
3.14.1. Calculation of ARR .................................................................................................................................... 41
Chapter 4 : Calculation of Retail Tariff for FY 2018-19 .................................................................................................... 41
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4.1. Introducing Various Categories and sub-categories of consumers ....................................................................... 42
4.2. Category wise distribution of consumers, load and energy consumption ............................................................ 44
4.3. Calculation of category wise distribution of consumers ....................................................................................... 46
4.4. Existing Tariff (FY 2017-18) ................................................................................................................................... 50
4.5. Approved Tariff (FY 2018-19) ................................................................................................................................ 53
4.6. Calculation of revenue from existing and approved tariffs ................................................................................ 56
4.6.1. Conversion Formulas ..................................................................................................................................... 56
4.6.2. Power Factor and Load Factor ........................................................................................................................ 57
4.6.3. Equations used in revenue calculation ..................................................................................................... 57
4.6.4. Tariff Hike and Average cost of Supply ..................................................................................................... 58
Chapter 5 : Changes brought in the tariff structure for FY 2019-20.............................................................................. 59
Chapter 6 : Results and discussion ................................................................................................................................... 61
6.1. Results................................................................................................................................................................... 61
6.2. Discussions............................................................................................................................................................. 61
Chapter 7 : Conclusion and Recommendations ............................................................................................................... 63
References ........................................................................................................................................................................ 65
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List of Tables
Table 3.1- 1: Energy Sales (MU), Number of consumers, Connected Load (kW) ....................................... 15
Table 3.2- 1: RPO (in MU) and Approved Cost (in Rs Cr) for the purchase of RECs................................. 17
Table 3.2- 2: Power purchase Quantum (in MU), Rate (Rs/kWh) and Cost (Rs Cr) ................................... 19
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Table 3.13- 1: Non-Tariff Income (in Rs Cr)................................................................................................ 40
Table 4.2- 1: Distribution of consumers, consumption (in MU) & Load(in kW)......................................... 44
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List of abbreviation
Abbreviation Description
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MU Million Units
MW Megawatt
NTI Non Tariff Income
O&M Operation & Maintenance
PGCIL Power Grid Corporation Of India Limited
PLF Plant Load Factor
PPA Power Purchase Agreement
PSU Public Sector Unit
R&M Repair & Maintenance
RAPDRP Restructured Accelerated Power Development and
Reforms Programme
REC Renewable Energy Certificates
RGF Resource Gap Funding
RoE Return on Equity
RPO Renewable Purchase Obligation
RTS Railway Traction Service
Rs Rupees
SBI State Bank of India
SERC State Electricity Regulatory Commission
SLDC State Load Despatch Centre
SLM Straight Line Method
SS Street Light Service
UI Unscheduled Interchange
UDAY Ujwal Discoms Assurance Yojana
WPI Wholesale Price Index
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Chapter 1 : Introduction
In the introduction, a brief overview about the electricity system and tariff is given. Further
present scenario of the electricity system has been discussed along with various initiatives taken
by the government. The key issues have also been brought into focus. And finally the objectives
of this report has been mentioned.
1.1. Overview
Electricity is one of the blissful gifts that science has given us. In today’s’ modern world one cannot
even think life being possible without electricity. From basic needs of lighting our homes, using fans,
in cooking equipments etc. to the modern means of transportation and communication, each field is
dependent on the availability of continuous and quality supply of electricity. For the better
development of any country, it is essentially required that starting from each and every household
getting the benefit of electricity to all other consumer categories. For this purpose, we need to have a
robust and reliable electricity system in our country.
Before understanding tariff of electricity system in detail, a slight overview of the entire power system
structure and hierarchy in India would be of great help. Power is one of the most critical components
of infrastructure, crucial for the economic growth and welfare of nations. The existence and
development of adequate infrastructure is essential for sustained growth of the Indian economy. The
electrical power system mainly consists of generation, transmission and distribution. For generation
of electrical power we have many PSUs and private owned Generating Stations (GS). The electrical
transmission system is mainly carried out by central government body Power Grid Corporation of
India Limited (PGCIL). To facilitate this process, we divide India into five regions: Northern,
Southern, Eastern, Western and Northeastern region. Further within every state, we have an SLDC
(State Load Dispatch Center). The distribution system is carried out by many distribution companies
(DISCOMS) and State Electricity Board (SEB) [3] [4]
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1
Figure 1: Simplified diagram of AC electricity delivery from generation stations to consumers' service drop.
1
https://en.m.wikipedia.org/wiki/Electric_power_distribution
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2
The Government of India has identified power sector as a key sector of focus so as to promote sustained
industrial growth. Some initiatives by the Government of India to boost the Indian power sector:
As of September 2018, a draft amendment to Electricity Act, 2003 has been introduced. It discusses
separation of content & carriage, direct benefit transfer of subsidy, 24*7 Power supply is an obligation,
penalization on violation of PPA, setting up Smart Meter and Prepaid Meters along with regulations
related to the same.
Ujwal Discoms Assurance Yojana (UDAY) was launched by the Government of India to encourage
operational and financial turnaround of State-owned Power Distribution Companies (DISCOMS), with
an aim to reduce Aggregate Technical & Commercial (AT&C) losses to 15 per cent by FY19.
As of August 2018, the Ministry of New and Renewable Energy set solar power tariff caps at Rs 2.50
(US$ 0.04) and Rs 2.68 (US$ 0.04) unit for developers using domestic and imported solar cells and
modules, respectively.
As of April 28, 2018, 100 per cent village electrification achieved under Deen Dayal Upadhyaya
Gram Jyoti Yojana (DDUGJY)
2
https://www.ibef.org/industry/power-sector-india.aspx
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1.3. Electricity Tariff
“Tariff” refers to the amount of money the consumer has to pay for making the power available to them
at their homes. Tariff system takes into account various factors to calculate the total cost of the
electricity. There are two tariff systems, one for the consumer which they pay to the DISCOMS and the
other one is for the DISCOMS which they pay to the generating stations. Firstly, the discussion is on the
tariff of electricity for the consumer i.e. the cost consumer pays to the DISCOMS. The total cost levied
on the consumer is divided into three parts usually referred as 3 part tariff system. Total cost of electrical
energy = fixed cost +semi fixed cost + variable cost.
Thus the total amount paid by the consumer depends on its maximum demand, actual energy consumed
plus some constant sum of money. Now electrical energy is expressed regarding unit, and 1 unit = 1
kW-hr (1 KW of power consumed for one hr). All these costs are calculated on active power consumed.
It is mandatory for the consumer to maintain a power factor of 0.8 or above otherwise penalty is levied
on them depending on the deviation.
Then the discussion is on the tariff system existent in India for the DISCOMS which is regulated by
Central Electricity Regulatory Commission (CERC). This tariff system is called Availability Based
Tariff (ABT). As the name itself suggests, it is a tariff system which depends on the availability of
power. It is a frequency based tariff mechanism which tends to make the power system more stable. The
fixed charge is same as that discussed above. The capacity charge is for making the power available to
them and depends on the capacity of the plant, and the third one is UI. This tariff mechanism also has of
3 parts i.e.
Time of Day (or TOD) tariff is a tariff structure in which different rates are applicable for use of electricity
at different time of the day. It means that cost of using 1 unit of electricity will be different in mornings,
noon, evenings and nights. This means that using appliances during certain time of the day will be cheaper
than using them during other times. Time of Day tariff is implemented to reduce consumption of electricity
during peak hours. To do this, electricity is made expensive during peak hours so that consumers use less
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of it. Utilities also reduce the electricity charges during off peak hours as an incentive for people to use
electricity during the off peak hours. With TOD tariff, people will either switch to a time when prices are
less or will start using efficient appliances (with lesser electricity consumption).[13]
In order to arrive at a robust power tariff structure, we need to address key issues which are as follows:
The absence of cost reflective tariffs
Huge cross subsidy
The complex mesh of multiple consumer categories and tariff slabs.
The recovery mismatch between variable and fixed costs of the utility -through retail tariffs. A
utility’s Power Purchase Cost constitutes 70-80 percent of the total tariff chargeable to consumers.
Bulk of this Power Purchase Cost is contracted through long term contracts based on two-part tariffs
whereby capacity (fixed) charges are a utility’s fixed obligations and need to be serviced
irrespective of purchase of power by the utility, which is largely dependent on the demand of
consumers. As a major part of the utility’s fixed cost is recovered through variable energy charges
dependent on sales -- which could vary to the extent of 50 per cent due to seasonal or weather
conditions (sales is maximum in summer season and minimum in winter season) -- there is always
a mismatch between the real fixed cost liability versus the amount collected thereof through tariff.
1.6. Objective
To calculate Total Energy Sales (considering all categories) and the total Power Purchase Quantum
along with expenses
To calculate the Aggregate Revenue Requirement (ARR) and find the revenue gap
To find the Tariff for various categories and the Tariff Hike
To reflect the various changes brought in the present released tariff order for FY 2019-20
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Chapter 2 : Literature Review
Before directly going to the methodology of calculation, first the terminologies and
regulations needs to be introduced for the better understanding of the report, which is done in
the following section.
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m. “Other Business” means any business of the Licensee other than the Licensed Business that utilizes
the distribution assets of the Licensee
n. “Retail Supply Business” means the business of sale of electricity by a Licensee to the category
of consumers within the area of supply in accordance with the terms of the Licensee for distribution
and retail supply of electricity;
o. “Retail Supply Tariff” is the rate charged by the Licensee for supply to non-open access customers
which includes charges for Wheeling and Retail Supply;
p. “Trading Business” means the business of purchase of electricity by the Licensee for resale to
another Licensee or consumers or category of consumers outside the area of supply of the Licensee;
q. “Tariff Period” shall mean the period from 1st April 2016 and up to31st March 2021 for which
Tariff is determined by the Commission under these Regulations;
r. “Wheeling” means the operation whereby the distribution system and associated facilities of a
Licensee, are used by another person for the conveyance of electricity on payment of charges to
be determined under Section 62 of the Act;
s. “Wheeling Business” means the business of operating and maintaining a distribution system for
conveyance of electricity in the area of supply of the Licensee
2.2.1. Calculation of ARR for Retail Supply Business during the Control Period
The Aggregate Revenue Requirement for the Retail Supply Business of the Licensee,
or each year of the Control Period, shall contain the following items;
a) Cost of power procurement;
b) Transmission & Load Dispatch charges;
c) Operation and Maintenance expenses;
d) Return on Equity;
e) Interest on Working Capital;
f) Interest on Loans;
g) Interest on Consumer Security Deposit;
h) Depreciation;
i) Income Tax;
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j) Lease Charges;
k) Foreign Exchange Rate variation;
l) Less: Non-Tariff Income;
m) Less: Income from Other Business; and
n) Less: Receipts on account of cross subsidy surcharge and additional surcharge from open access
customers.”
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Gn – Increase in Employee Expenses in nth year due to increase in consumer base/ load growth. Value
of G for each year of the Control Period shall be determined by the Commission in the MYT Tariff
order
based on Licensee’s filing, benchmarking with the efficient utilities, actual cost incurred by the licensee
due to increase in consumer base/load growth in past, and any other factor considered appropriate by
the Commission;
INDXn= 0.55*CPIn+0.45*WPIn;
Note 1: For the purpose of estimation, the same INDXn/INDXn-1value shall be used for all years of
the control period. However, the Commission considers the actual values in the INDXn/INDXn-1at the
end of each year during the Annual Performance Review exercise and true up the employee cost and
A&G expenses on account of this variation, for the Control Period;
Note 2: Any variation due to changes recommended by the Pay Commission etc. will be considered
separately.
Note 3: Terminal Liabilities will be approved as per actual submitted by the Licensee or be established
through actuarial studies.
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2.2.4. Return on Equity
“The rate of return on equity shall be 15.5% (post-tax) for the period of these Regulations; Provided
that in case of projects commissioned on or after 1st April, 2016 the rate of return shall be increased by
0.50%, if such projects are completed within the time line specified in the capital investment plan
approved by the Commission;
Return on equity shall be allowed on equity employed in assets in use considering the following:
Equity will be employed in accordance Regulations, on assets (in use) commissioned as on the
beginning of the year; and
Average equity projected to be employed on assets (in use) commissioned during the year;
Return on equity invested in work in progress shall be allowed from the date of commercial operation
of the assets;
The loans arrived shall be considered as gross normative loan for calculation of interest on loan.
The normative loan outstanding as on 1st April 2016 shall be worked out as the gross loan by
deducting the cumulative repayment as admitted by the Commission up to 31st March 2016 from the
gross normative loan.
The repayment for the year of the tariff period shall be deemed to be equal to the depreciation allowed
for that year.
Notwithstanding any moratorium period availed by the licensee, the repayment of loan shall be
considered from the first year of commercial operation of the project and shall be equal to the annual
depreciation allowed.
The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual
loan portfolio at the beginning of each year applicable to the project
The rate of interest shall be considered on normative basis and shall be equal to the Base rate of State
Bank of India plus 200 basis points as on the date on which the distribution licensee is declared under
commercial operation.
The interest on loan shall be calculated on the normative average loan of the year by applying the
weighted average rate of interest.
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The above interest computation shall exclude interest on loan amount, normative or otherwise, to the
extent of capital cost funded by Consumer Contribution, Grants or Deposit Works carried out by
Distribution Licensee.
The changes to the loan terms and conditions shall be reflected from the date of such re-financing and
benefit passed on to the consumers.
The interest paid on security deposit (cash) to the consumers shall be allowed as a part of the Interest
on loan capital under these regulations.
2.2.7. Depreciation
Depreciation means reduction in the value of an asset over time, due to wear and tear in particular. It
is calculated in the following manner.
Depreciation shall be calculated every year, on the amount of original cost of the fixed assets as
admitted by the Commission; Provided that depreciation shall not be allowed on assets funded by
consumer contribution and capital subsidies/grants.
Depreciation shall be calculated annually, based on the straight line method, over the useful life of the
asset. The base value for the purpose of depreciation shall be original cost of the asset; Provided that
the Distribution Licensee shall ensure that once the individual asset is depreciated to the extent of
seventy (70) percent, remaining depreciable value as on31st March of the year closing shall be spread
over the balance useful life of the asset.
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Depreciation shall be charged from the first year of operation of the asset. In case, the operation of the
asset is for a part of the year, depreciation shall be charged on a prorate basis;
The residual value of assets shall be considered as 10% and depreciation shall be allowed to a maximum
of 90% of the original cost of the asset. Land is not a depreciable asset and its cost shall be excluded
while computing 90% of the original cost of the asset.
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assuming maximum normative rebate available from each source for payment of bills through letter of
credit on presentation of bills in accordance with the tariffs approved from time to time by CERC and
appropriate State Commissions, as the case may be.
The Licensee shall also be allowed to recover the Wheeling Charges, during the Control Period, in case
the distribution network of other Licensee is used for procurement of power for the Retail Supply
Business.
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indirect costs of such Other Business exceeds the revenues from such Other Business, no amount shall
be allowed to be added to the ARR of the Licensee on account of such Other Business.
This chapter consists of the methodology of calculations of various particulars that are needed
for the calculation of ARR. Various equations have been introduced in a simplified way
supporting each table of a particular so that calculations are easily understood. Energy Sales
“As per the data given by the Petitioner (JVBNL), with respect to addition of consumers in
domestic and agriculture category, has led to the appropriate adjustment of the sales by the
commission for the same based on the average per capita consumption per consumer. For other
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categories, the projected sales, connected load and consumers has been calculated by applying
CAGR trends based on the past data.”
Accordingly, the sales (MU), connected load (KW) and number of consumers for the FY 2018-
19 has been tabulated below:
Table 4.1- 1: Energy Sales (MU), Number of consumers, Connected Load (kW)
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Total Number of Consumers = Number of Consumers in (Domestic + Commercial/ Non domestic +
Irrigation & Agricultural / IAS + Industrial LT/LTIS + Industrial HTS/HTSS/EHT + IS-I: Public
Lighting / SS + IS-II: RTS,MES) category ………………………………………………………..(3.2)
Total Number of Consumers = 3850029 + 237536 + 63420 + 15684 + 1625 + 530 + 8
= 4168832
Total Connected Load (kW) = Connected load in (Domestic + Commercial/ Non domestic + Irrigation
& Agricultural / IAS + Industrial LT/LTIS + Industrial HTS/HTSS/EHT + IS-I: Public Lighting / SS
+ IS-II: RTS, MES) category ……………………………………………………….(3.3)
Total Connected Load = 5238615.95 + 514583.7 + 100793 + 266628 + 828635.94 + 38560 + 25795 =
7013611.59 kW
“The Station wise per unit cost (Rs./kWh) on the basis of either the rate approved by the Commission in its
earlier Order or on the basis of actual cost of generation during FY 2016-17 has been considered. Further,
5% escalation rate over the station-wise unit cost of FY 2017-18 has been considered to arrive at the
Station-wise unit cost for FY 2018-19.
Further, for the projection of power purchase rate for the FY 2018-19, a similar methodology has been
adopted by it in its earlier tariff Order which has been explained below:
For thermal power stations, an escalation of 2.5% in the fixed charges of the power purchase rate while no
escalation in the Energy charges has been considered.
For hydro stations, 2.5% escalation has been considered for both fixed and energy charges.
For projecting the power purchase from renewable energy sources to meet the RPO during FY 2018-
19, the Commission has considered the RPO trajectory as per JSERC (Renewable Energy Purchase
Obligation and its compliance) Regulations, 2016 as amended from time to time.
The power purchase rate from SECI (Wind) has been considered at 2.72 Rs/kWh as per the submission
made by the Petitioner in its instant petition and letter submitted subsequently to the Commission.
With respect to power purchase rate from solar, the Commission has considered meeting RPO through
purchase of RECs.”
Accordingly, the renewable energy quantum to be purchased for the FY 2018-19 along with Power
purchase from various sectors are shown as follows:
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Table 3.2- 1: RPO (in MU) and Approved Cost (in Rs Cr) for the purchase of RECs
3.2.1. Calculation of RPO and Approved Cost for the purchase of REC
RPO as per JSERC Regulation
As per regulation RPO should be 10% of total quantum purchased which is shown here below:
Total quantum purchased = 13469.3 MU
Quantum purchased from solar = 740.81MU
Solar as percentage of total quantum = (Quantum purchased from solar/Total quantum
purchased)*100………………………………………………………………………………(3.4)
Solar as percentage of total quantum = (740.81/13469.3)*100 = 5.50%
Quantum purchased from non-solar = 606.12 MU
Non-Solar as percentage of total quantum =( Quantum purchased from non-solar/Total
quantum
purchased)*100…………………………………………………………………….(3.5)
Non-Solar as percentage of total quantum = (606.12/13469.3)*100 = 4.50%
Total Quantum From Renewable = Quantum purchased from solar + Quantum purchased from
non-solar……………………………………………………………………………………..(3.6)
Total Quantum From Renewable = 740.81 + 606.12 = 1346.93 MU
Total Quantum From Renewable as percentage of total quantum = (Total Quantum From
Renewable/Total quantum purchased)*100 ………………………………………………...(3.7)
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Total Quantum From Renewable as percentage of total quantum = (1346.93/13469.3)*100
= 10%
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Further, for PGCIL and POSOCO same charges have been considered as approved in the earlier Order
dated June 21, 2017. Accordingly, the power purchase quantum (in MUs) and total power purchase rate
(Rs/kWh) and cost (in Rs Cr) for the FY 2018-19 is summarized in the table below:
Table 3.2- 2: Power purchase Quantum (in MU), Rate (Rs/kWh) and Cost (Rs Cr)
NHPC
Rangit 45.8 3.57 16.35
Teesta 329.7 2.17 71.54
Total-NHPC 375.5 87.89
PTC
Chukka 203.8 2.35 47.89
Punatsangchhu-II HEP 0 0 0
Tala 405.6 2.21 89.63
Total-PTC 609.4 137.53
State Sector
PTPS/PUVNL 0 0 0
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Quantum in Per unit Rate Power Purchase
Particulars (MUs) (Rs/kWh) Cost (in Rs Cr)
PTPS-NTPC Phase-1 / PUVNL Phase-1 0 0 0
SHPS 55.2 1.15 6.35
TVNL 2266.8 3.88 879.52
Total State Sector 2322 885.87
Private
Inland Power 422.9 3.8 160.70
APNRL - 12% APNRL-13% 954 3.89 371.11
APNRL- Additional 66 MW 330.2 3.73 123.16
Total Private Sector 1707.1 654.97
Other RE
Solar IPP's 19.7 17.96 35.38
Solar REC's 0
JREDA 312 4.72 147.26
SECI 19.1 2.72 5.20
RE Others / Wind 400 3.53 141.2
Total Other RE 750.8 329.04
PGCIL 121.91
Posoco (ERLDC) 1.51
UI Payable 0 0 0
UI Receivable 0 0 0
Rungta Mines 42.3 3.38 14.30
ABCIL 45.2 3.92 17.72
NVVNL(Korba III &Farrakka III) 0 0 0
ERLDC(APNRL) 0 0 0
GBI/ Rebate 0 0 0
Additional REC purchase 67.65
20 | P a g e
Total Quantum purchased from NHPC = Quantum purchased from (Rangit + Teesta)
………………………..……(3.13)
Total Quantum purchased from NHPC = 45.8 + 329.7 = 375.5 MU
Total Quantum purchased from PTC = Quantum purchased from (Chukka + Punatsangchhu-II HEP +
Tala) ……………………………………………………………………………………………(3.14)
Total Quantum purchased from PTC = 47.893 + 0 + 89.6376 = 137.5306MU
Total Quantum purchased from Central Sector = Total NTPC + Total NHPC + Total PTC
…………………………………….…(3.15)
Total Quantum purchased from Central Sector = 2665.3 + 375.5 + 137.5306 = 1175.1329MU
Total Others = Quantum purchased from (DVC + DVC STOA)…………………………..……..(3.16)
Total Others = 4951.7 + 0 = 4951.7MU
Total quantum purchased from State Sector = Quantum purchased from (PTPS/PUVNL + PTPS-NTPC
Phase-1 / PUVNL Phase-1 + SHPS + TVNL) …………………………………………....(3.17)
Total quantum purchased from State Sector = 0 + 0 + 55.2 + 2266.8 = 2322 MU
Total quantum purchased from Private Sector = Quantum purchased from (Inland Power + APNRL -
12% APNRL-13% + APNRL- Additional 66 MW) …………………………….........................(3.18)
Total quantum purchased from Private Sector = 422.9 + 954 + 330.2 = 1707.1MU
Total quantum purchased from other RE= Quantum purchased from (Solar IPP's + Solar REC's +
JREDA + SECI + RE Others / Wind) …………………………………………………………….(3.19)
Total quantum purchased from other RE = 19.7 + 0 + 312 + 19.1 + 400 = 750.8MU
Some other power purchase = Quantum purchased from (PGCIL + Posoco (ERLDC) + UI Payable +
UI Receivable + Rungta Mines + ABCIL + NVVNL (Korba III &Farrakka III) + ERLDC(APNRL) +
GBI/ Rebate + Additional REC purchase) ……………………………………………………..…(3.20)
Some other power purchase = Rungta Mines+ ABCIL = 42.3+ 45.2 = 87.5MU
Grand Total =Total Quantum purchased from (Central Sector + Total Others + State Sector + Private
Sector + Total Other RE + Rungta Mines+ ABCIL) ……………………………………………..(3.21)
Grand Total = 1175.1329 + 4951.7 + 2322 + 1707.1 + 750.8 + 42.3 + 45.2 = 13469.3MU
Power Purchase Cost for all sectors (in Rs Cr) = Quantum in MUs * Per Unit Rate (Rs/kWh)
…………………………………...(3.22)
21 | P a g e
Grand Total Power Purchase Cost = Total Cost Of Power purchase from (Central Sector + Total Others
+ State Sector + Private Sector + Total Other RE + PGCIL + Posoco (ERLDC) + Rungta Mines+
ABCIL + Additional REC) ……………………………………………………………...(3.23)
Grand Total Power Purchase Cost = 1175.1329 + 1980.68 + 885.8664 + 654.9726 + 329.0404 + 121.91
+ 1.51 + 14.2974 + 17.7184 + 67.65486 = Rs5248.78296Cr
Surplus sale = 1102.21 MU
Cost recovered from sale of Surplus Units = Rs429.5157 Cr
Total Power Purchase Units = Grand Total Quantum - Surplus sale……………………………..(3.24)
Total Power Purchase Units = 13469.3 – 1102.21 = 12367.09 MU
Total Power Purchase Cost = Grand Total Power Purchase Cost - Cost recovered from sale of Surplus
Units ………………………………………….…………………………………………………...(3.25)
Total Power Purchase Cost = 5248.78296 – 429.5157 = Rs 4819.267Cr
Average Power Purchase Cost (in Rs/kWh) = [Total cost of power purchase (in Rs Cr) / Total quantum
of power purchase (in MU)] * 10
Average Power Purchase Cost = [4819.27 / 12367.09] *10 = Rs 3.89 / kWh
“On the basis of estimated power purchase and sales, energy availability for FY 2018-19 has been
calculated.
The power purchase from various sources are segregated into different heads, while calculating the energy
balance for the FY 2018-19 are explained below:
Power Purchase from Outside JSEB Boundary- NTPC, NHPC, PTC, APNRL, part of TVNL, NVVNL,
SECI and RE wind.
Energy Input Directly to State Transmission System- Input of power from TVNL directly to State
Transmission System.
Energy Input through Renewables sources- Input from Solar IPPs selected through JREDA.
State-owned Generation- PTPS, SHPS, Rungta Mines, ABCIL, Inland Power.
Direct Input of Energy to Distribution System- DVC and Solar IPPs”.
22 | P a g e
The energy requirement (in MU) as approved by the Commission for the FY 2018-19 based on approved
energy sales and distribution losses is summarized below:
Table 3.3- 1: Energy Requirement (MU)
Particulars Value
“The energy availability for the FY 2018-19 has been worked out on the basis of actual generation from
tied up power from central, state-owned and other stations including renewables. Further, the loss in
external system has been considered at the same level as approved by the Commission in its earlier
Order, while the intra-state-transmission loss has been considered at 2.23% as per the Tariff Order for
JUSNL dated 24th February, 2018”. The energy availability from various sources has been summarized
below:
23 | P a g e
Particulars Unit Values
Power Purchase from outside JSEB boundary MU 6,192.22
Loss in External System (inter-state tr loss) % 3.00%
Loss in External System MU 185.77
Net Outside Power Available MU 6,006.45
Energy Input Directly to State transmission system MU 1428.08
State-owned Generation MU 565.6
Energy Input through Renewable Sources MU 312
Payable MU 0
UI Sale / Receivable MU 0
Energy Available for Onward Transmission MU 8312.13
Transmission Loss % 2.23%
Transmission Loss MU 185.36
Net Energy Sent to Distribution System MU 8126.77
Direct Input of Energy to Distribution System MU 4971.4
Total Energy Available for Sales MU 13098.17
=6,192.22MU
24 | P a g e
Energy Input Directly to State transmission system= 63%* Quantum Purchased from TVNL
……………………………..(3.31)
Energy Input Directly to State transmission system =63%*2266.8=1428.08MU
State-owned Generation =Quantum of Power Purchased from (SHPS + Rungta Mines + ABCIL +
Inland Power) …………………………………………………………………….……………...(3.32)
State-owned Generation = 55.2+42.3+45.2+422.9 = 565.6 MU
Energy Input through Renewable Sources= Quantum purchased from JREDA…………………(3.33)
Energy Input through Renewable Sources =312 MU
Energy Available for Onward Transmission = Net Outside Power Available + Energy Input Directly to
State transmission system + State-owned Generation + Energy Input through Renewable Sources
…………………………………………………………………………………………………….(3.34)
Energy Available for Onward Transmission =6006.45+1428.08+565.6+312 =8312.134MU
Transmission Loss (%)=2.23%
Transmission Loss =2.23%* Energy Available for Onward Transmission……………………….(3.35)
Transmission Loss =2.23%*8312.134 = 185.3606 MU
Net Energy Sent to Distribution System= Energy Available for Onward Transmission - Transmission
Loss ………………………………………………………………………………………….……(3.36)
Net Energy Sent to Distribution System = 8312.134-185.3606 = 8126.773 MU
Direct Input of Energy to Distribution System = Solar IPP's + Total others (DVC) ……….…....(3.37)
Direct Input of Energy to Distribution System= 19.7+4951.7 =4971.4 MU
Total Energy Available for Sales = Net Energy Sent to Distribution System+Direct Input of Energy to
Distribution System ………………………………………………………………………………(3.38)
Total Energy Available for Sales= 8126.773+4971.4 = 13098.07 MU
The Petitioner is left with surplus power which can be sold at average power purchase cost to earn
revenue subject to true-up. Accordingly, the Revenue at the sale of surplus power is summarized in the
table below:
Particulars Values
25 | P a g e
Particulars Values
Surplus units that can be sold (MU) 1,102.21
Average Power Purchase Cost (Rs/kWh) 3.90
Revenue on selling surplus units 429.52
Particulars Values
Total power purchase cost 5248.78
Minus: Revenue due to sale of Surplus Power 429.52
Net Power Purchase Cost 4819.27
Net Power Purchase Cost = Total power purchase cost - Revenue due to sale of Surplus Power
……………………………..……..(3.42)
26 | P a g e
3.4. Intra-State Transmission Charges
“The Commission has considered the methodology adopted in the earlier order for computation of
transmission charges, on energy wheeled through intra-state transmission network. The per unit
transmission charge has been considered to be same as approved in the earlier Order dated June 21,
2017 till January’2018. The per unit charge has been considered at the rate approved as per JUSNL
Tariff Order dated 24th February, 2018 which is 0.25 Rs/kWh wheeled for the period post
January’2018.”
Further, the energy wheeled through transmission network has been considered as per approval granted
in the previous section on energy requirement and no transmission charges are applicable on direct
input of energy to distribution system which comprise power available from DVC and Solar IPPs.
The Intra-State Transmission charges approved by the Commission for the FY 2018-19 as shown in
the following table.
Particulars Value
27 | P a g e
With respect to JSBAY scheme, the Petitioner submitted that the GoJ, has sanctioned a total Rs. 5,127
Crore under the Jharkhand SampurnaBijliAchyadanYojna (JSBAY) under which the electrification of
all remaining tolas etc. shall be done. The Petitioner further submitted that the funds received under
JSBAY are in form of grants.
Further with respect to funding of RAPDRP schemes, the Petitioner submitted that the central
government provided 100% of total project outlay for RAPDRP Part A, which is provided in form of
debt in the beginning. However, if the scheme targets are met, the entire funds are converted to grants,
with the interest cost capitalized. In case of RAPDRP Part B scheme, the funds to the tune of 25% of
total scheme layout are received from the Central Government, while the State Govt. has to contribute
remaining 75%, which the Petitioner is receiving as debt. 50% of the Central Govt. share is convertible
into grant in equal tranches, if the Petitioner is able to achieve the target of 15% AT&C loss on a
sustained basis for a period of 5 years in the project area and the project is completed within the
stipulated time schedule.
The Commission decides to approve 50% of the amount proposed by the Petitioner under ADP+ Misc
Head.
The scheme-wise capital expenditure as submitted by the Petitioner has been tabulated below:
DDUGJY 965.6
IPDS 279.1
RAPDRP – A 0
RAPDRP – B 0
12th Plan RGGVY 0
ADP + Miscellaneous 315.55
Tilka Manjhi + AGJY 33.6
JSBAY 900
RGGVY 10th & 11th Plan 0
Total 2493.85
28 | P a g e
Scheme wise capital expenditure = Expenditure to (DDUGJY + IPDS + RAPDRP – A + RAPDRP – B
+ 12th Plan RGGVY + ADP + Miscellaneous + TilkaManjhi + AGJY + JSBAY + RGGVY 10th &
11th Plan) schemes …………………………………………………………………………...…..(3.45)
Scheme wise capital expenditure = 965.6 + 279.1 + 0 + 0 + 0 + 315.55 + 33.6 + 900 + 0
= Rs 2493.85Cr
Based on the capitalization pace of the Petitioner, the capitalization has been approved in the ratio of
20:30:50 for the first, second and third year by the commission. Further, the opening CWIP for the FY
2017-18 capitalized in three years in the ratio of 30:30:40 in the first second and third year respectively.
The opening GFA & CWIP for the FY 2017-18 is considered to be equal to the closing GFA & CWIP
respectively for the FY 2016-17. Accordingly, the GFA and CWIP for the FY 2017-18 and FY 2018-
19 is calculated and given below for FY 2018-19:
29 | P a g e
Opening CWIP 6,480.33
Capex during the year 2,493.85
Transfer to GFA 3,027.94
closing CWIP 5,946.24
Consumer contribution has been estimated based on the average percentage of consumer contribution of
FY 2015-16 and FY 2016-17 to GFA addition i.e. 4.26%. The same percentage of GFA addition has been
used to compute the consumer contribution for FY 2017-18 and FY 2018-19. Here below given is the
table showing scheme wise Grants.
Particulars unit(Cr)
DDUGJY 579.36
IPDS 167.46
RAPDRP – A 0
RAPDRP – B 0
12th Plan RGGVY 0
ADP + Miscellaneous 0
TilkaManjhi + AGJY 33.6
30 | P a g e
Particulars unit(Cr)
JSBAY 900
RGGVY 10th & 11th Plan 0
Total 1680.42
Further, for estimating the Consumer contribution, the average of the actual proportion of consumer
contribution for the FY 2015-16 & FY 2016-17 was computed which comes out to 5.95%. The same
percentage has been applied on the capitalization for the FY 2017-18 & FY 2018-19 to arrive at the
consumer contribution for the FY 2017-18 & FY 2018-19.
The Opening balance of grants and consumer contribution for the FY 2018-19 has been considered to
be the closing balance for the FY 2017-18. Accordingly, the Grants and consumer contribution has
been tabulated below:
31 | P a g e
Scheme wise grants during the year = 1680.42Cr
Consumer contribution during the year = 5.95%*Transfer to GFA ……………..……………….(3.54)
Consumer contribution during the year =5.95%*3027.94 = Rs180.16243Cr
Closing Consumer contribution and Grants for 2018-19 = Opening + Scheme wise grants during the
year + Consumer contribution during the year ………………………………………………...…(3.55)
Closing Value = 6853.13+1680.42+180.16243 = Rs8713.71Cr
Further, for estimating the sources of finance required to fund the closing GFA, the Commission had
reduced the GFA by the consumer contribution, grants & subsidies available with the Petitioner.
For funding of above mentioned GFA, the normative debt-equity ratio of 70:30 has been considered.
Moreover, consumer contribution grants and subsidies for capital assets are first netted off from gross
fixed assets and the normative debt-equity ratio is applied on the remaining gross fixed assets.
Accordingly, the funding of GFA for the FY 2018-19 has been tabulated below:
GFA Cr 10428.77
Cons Contribution & Grants Cr 8713.71
Consumer contribution, Grants towards GFA Cr 5549.51
Debt & Equity towards GFA Cr 4879.26
Equity @ 30% Cr 1463.78
Net accumulated Depreciation Cr 1609.14
Normative Loan Cr 1806.34
32 | P a g e
= Rs5549.51Cr
Debt & Equity towards GFA = GFA - Consumer contribution, Grants towards GFA …………..(3.57)
Debt & Equity towards GFA = 10429.77-5549.51 = Rs4879.26 Cr
Equity @ 30% = 30%* Debt & Equity towards GFA …………………………………………....(3.58)
Equity @ 30% =30%*4879.26 =Rs 1463.78Cr
Net accumulated Depreciation = Rs1609Cr
Normative Loan = Debt & Equity towards GFA - Equity @ 30% - Net accumulated Depreciation
……………………………………..(3.59)
Normative Loan = 4879.26-1463.78 – 1463.78 – 1609.14 = Rs 1806.34Cr
“As per Clause 6.3 of the JSERC Distribution Tariff Regulations, 2015, the O&M expenses shall include:
a) Salaries, wages, pension contribution and other employee costs
b) Administrative and General expenses
c) Repair and Maintenance”
The employee cost for FY 2017-18 & FY 2018-19 was determined by increasing the employee cost for
the FY 2016-17 (excluding the amount of terminal benefits) by the inflation factor of 4.36%.
The Commission has considered the cost towards terminal benefits during the FY 2017-18 & FY 2018-19
to be same as that for FY 2016-17.
A similar methodology was adopted for the approval of A&G expenses wherein the A&G expenses for
the FY 2016-17 approved in the Order has been escalated by 4.36%.
The R&M expenses have been approved at 2.34% of the opening GFA for each year subject to true-up.
The O&M expenses as approved by the Commission for the FY 2018-19 is summarized in the following
table:
33 | P a g e
Assumptions Unit Values
A&G cost for 2017-18 Cr 59.31
A&G escalation % 4.36
Opening GFA Cr 7400.83
Employe cost for 2017-18 Cr 221.46
3.8. Depreciation
The Commission has determined the depreciation on the GFA created out of debt and equity excluding
the consumer contribution, grants for the FY 2017-18 & FY 2018-19. The rate of depreciation has been
34 | P a g e
considered at 5.94% as approved in the earlier Order dated June 21, 2017. Accordingly, the Commission
approves the depreciation for the FY 2018-19 as summarized in the following table:
GFA Considered for Dep (Net of cons cont and Grants) Cr 4,879.26
Rate of depreciation % 5.94
Depreciation Cr 289.83
The loans were calculated considering the debt-equity ratio in line with Regulations of the JSERC MYT
Regulations 2015 following the methodology. The interest on normative loan as approved by the
Commission for the FY 2018-19 is summarized in the following table:
35 | P a g e
Particulars Unit Value
Interest Expenses Total (in Rs Cr) 166.62
“The Commission has considered the average security deposit per consumer as per the actuals for the
FY 2016-17, which comes out at around Rs.1454 per consumer”.
Then security deposit per consumer arrived as per methodology above has been multiplied with the
number of consumers approved for the FY 2018-19 to estimate the amount of security deposit for each
year.
“The applicable interest rate considered is as per JSERC Supply Code Regulations 2015 which states
that the Petitioner is to pay interest to the consumer at the SBI Base rate prevailing on 1st April of the
FY 2018-19 i.e. 8.70%”
The Interest on consumer security deposits as approved by the Commission for the FY 2018-19 has
been tabulated below:
36 | P a g e
Table 3.10- 1: Interest on security deposit
The interest on working capital has been considered as per the norms specified in the JSERC MYT
Regulations 2015.
As per JSERC MYT Regulations 2015, the working capital requirements are to be determined as per
the following norms:-
Operation & Maintenance expenses for one month; plus
One month equivalent of cost of power purchased, based on the annual power procurement
plan
37 | P a g e
Rate of interest on working capital has been considered to be equal to the base rate of SBI as applicable
on the 1st April of FY 2018-19 i.e 8.70% plus 350 basis points as per Regulation 6.31 of the JSERC
MYT Regulations 2015.
The interest on working capital as computed by the Commission for the FY 2018-19 is summarized in
the following table:
Particulars Values
38 | P a g e
Interest rate on WC (%) = The base rate of SBI as applicable on the 1st April of FY 2018-19 + 350
basis points ………………………………………………………………………………………..(3.80)
Interest rate on WC (%) = 8.7% + 3.5 = 12.2%
Interest on Working Capital = Interest rate on WC % *Total Working Capital requirement
………………………………………….…(3.81)
Interest on Working Capital= 12.2%*100.5974 =Rs12.27289 Cr
“The Commission has approved the Return on Equity on the approved equity employed for the FY
2018-19 as per the Regulations specified in the JSERC Distribution Tariff Regulations, 2015: The
Commission has considered the opening balance of normative equity as per the closing balance for the
FY 2016-17 as approved in this Order. Further, the rate of return on equity is considered to be 15.50%.
Accordingly, the Commission computed normative return on equity as follows”:
Particulars Values
39 | P a g e
Deemed Additions = Closing Balance of Normative Equity - Opening Balance of Normative Equity for
FY2018-19…………………………………………………………………………………….(3.84)
Deemed Additions = 1463.778 - 1124.11 =Rs 339.67Cr
Average Equity = (Opening Balance + Closing Balance)/2 ……………………………………...(3.85)
Average Equity = (1124.11 + 1463.778) / 2 = Rs1293.944Cr
Return on Equity (%) = 15.5%
Return on Equity = Return on Equity (%)*Average Equity ……………………………………..(3.86)
Return on Equity = 15.5%*1293.944 = Rs200.5613Cr
“The Commission has projected the net Non-Tariff income for FY 2018-19 by escalating the net Non-
Tariff income for the FY 2016-17 as approved in this Order by 5% per year as per the methodology
adopted in the earlier Order”. Accordingly, the Non-Tariff income as approved by the Commission for
the FY 2018-19 is summarized in the following table:
Particulars FY 2018-19
Considering all the calculations done in the above tables followed by their elaboration using equations,
following table summarizes the ARR for the FY 2018-19.
% of Total
Particulars Unit Values ARR
40 | P a g e
% of Total
Particulars Unit Values ARR
O&M expenses Cr 465.16 7.66
Employee Expenses Cr 230.0797 3.79
A&G Expenses Cr 61.89592 1.02
R&M Expenses Cr 173.1794 2.85
Depreciation Cr 289.828 4.77
Interest on Loan Cr 166.6178 2.74
Return on Equity Cr 200.5613 3.30
Interest on Working Capital Cr 12.27289 0.20
Interest on security deposit Cr 52.73489 6.87
Provision for doubtful debts Cr 0 0
Less: Non-Tariff Income Cr 141 2.32
In this section various categories of consumer have been explained along with division of
number of consumers, consumption(MU), and connected load (kW) in each of the above
41 | P a g e
categories has been shown. Then the existing tariff (i.e. for FY 2017-18) is shown along with
calculation of approved tariff (i.e. for FY 2018-19). Tariff hike by comparing both existing
and approved tariff is also calculated.
As we clearly know that we have different categories of consumers so for the calculation of tariff
first I would like to introduce various categories of consumers as well distribution of consumers
in various categories.
Various categories of consumers considered are described as follows:-
i. Domestic
i.1. Rural - For rural areas (including rural drinking water schemes) which is not covered by area
indicated under DS-Urban (includes rural drinking water schemes)
Metered
Unmetered
i.2. Kutirjyoti - This Schedule shall apply to KutirJyoti Connections for Rural Areas.
Metered
Unmetered
i.3. Urban - This applies to urban areas covered by Nagar Nigam, Nagar Parishad, Nagar Panchayat.
i.4. DSHT - This Schedule shall apply for domestic connection in Housing Colonies / Housing
Complex / Houses of multi storied buildings purely for residential use for single point metered
supply, with power supply at 33 kV or 11 KV voltage level. Individual households in the housing
colonies/ multi-storeyed buildings/ housing complexes would pay the same tariff as applicable
for this category.
ii. Irrigation & Agricultural / IAS - This schedule shall apply to all consumers for use of electrical
energy for Agriculture purposes including tube wells and processing of the agricultural produce,
confined to Chaff-Cutter, Thresher, Cane crusher and Rice-Hauler, when operated by the
agriculturist in the field or farm and does not include Rice mills, Flour mills, Oil mills, Dal mills,
Rice-Hauler or expellers.
ii.1. Rural (IAS 1) (95%)
Metered
Unmetered
ii.2. Urban (IAS 2) (5%)
42 | P a g e
Metered
Unmetered
iii. Commercial/ Non domestic- This schedule shall apply to all consumers, using electrical energy
for light, fan and power loads for non-domestic purposes like shops, hospitals (govt. or private),
nursing homes, clinics, dispensaries, restaurants, hotels, clubs, guest houses, marriage houses,
public halls, show rooms, workshops, central air-conditioning units, offices (govt. or private),
commercial establishments, cinemas, X-ray plants, schools and colleges (govt. or private),
boarding/ lodging houses, libraries (govt. or private), research institutes (govt. or private),
railway stations, fuel – oil stations, service stations (including vehicle service stations), All India
Radio / T.V. installations, printing presses, commercial trusts / societies, Museums, poultry
farms, banks, theatres, common facilities in multi-storied commercial office/buildings,
Dharmshalas, public Electric Vehicles Charging stations and such other installations not covered
under any other tariff schedule
This schedule shall also applicable to electricity supply availed through separate (independent)
connections for the purpose of advertisements, hoardings and other conspicuous consumption
such as external flood light, displays, neon signs at public places (roads, railway stations, airports
etc.), departmental stores, commercial establishments, malls, multiplexes, theatres, clubs, hotels
and other such entertainment/ leisure establishments.
iii.1. Urban- Applies to Urban areas covered by Nagar Nigam, Nagar Parishad, Nagar Panchayat.
iii.2. Rural - Applies to Rural Areas not covered by area indicated for CS- Urban.
iv. Industrial Services -
iv.1. Industrial LT/ LTIS - This schedule shall apply to all industrial units applying for a load of less
than or equal to 100 kVA (or equivalent in terms of HP or kW). The equivalent HP for 100 kVA
shall be 114 HP and the equivalent kW for 100 kVA shall be 85.044 kW.
iv.2. Industrial HTS (11kV) - The schedule shall apply for consumers having contract demand above
100 kVA.
iv.3. Industrial HTSS (all at 33kV) - This tariff schedule shall apply to all consumers who have a
contracted demand of 300 KVA and more for induction/arc Furnace. In case of induction/arc
furnace consumers (applicable for existing and new consumers), the contract demand shall be
based on the total capacity of the induction/arc furnace and the equipment as per manufacturer
43 | P a g e
technical specification and not on the basis of measurement. This tariff schedule will not apply
to casting units having induction furnace of melting capacity of 500 Kg or below.
v. Institutional service - This tariff schedule shall apply for use of Street Lighting system, Railway
Traction, Military Engineering Services and Other Distribution Licensees.
v.1. IS-I :Public lighting/SS - This tariff schedule shall apply for use of Street Lighting system,
including single system in corporation, municipality, notified area committee, panchayats etc.
and also in areas not covered by municipalities and Notified Area Committee provided the
number of lamps served from a point of supply is not less than 5.
v.2. IS-II: RTS (Railway Traction Services) - This tariff schedule shall apply for use of railway
traction Services (RTS) for a mixed load in related area.
v.3. IS-II: MES (Military Engineering Services) - This tariff schedule shall apply for use of Military
Engineering Services (MES) for a mixed load in defense cantonment and related area.
Below here table shows the total number of consumers, their power consumption in MU and
Connected Load in kW in each of the 5 main categories as well as their percentage divisions in the
sub categories. This division is done on assumption basis seeing the previous year trends in order
to arrive at tariff of FY 2018-19 (not exact but close to that value): -
Table 4.2- 1: Distribution of consumers, consumption (in MU) & Load(in kW)
Sub- No of Consumption
Category Sub-category division consumers (MU) Load(kW)
44 | P a g e
Sub- No of Consumption
Category Sub-category division consumers (MU) Load(kW)
Metered
(40%) 539004.06 882.5964 733406.233
Unmetered
(60%) 808506.09 1323.8946 1100109.35
Urban (30%-
30) 1154978.7 1866.278 1556584.785
DS HT
(11kV) (30)
(P.f.=0.92)
(L.f.=1) 30 25 15000
Irrigation &
Agricultural / IAS 63420 181.24 100793
Rural (IAS 1)
(95%) 60249 172.178 95753.35
Metered
(10%) 6024.9 17.2178 9575.335
Unmetered
(90%) 54224.1 154.9602 86178.015
Urban (IAS 2)
(5%) 3171 9.062 5039.65
Metered
(10%) 317.1 0.9062 503.965
Unmetered
(90%) 2853.9 8.1558 4535.685
Commercial/ Non
domestic 237536 737.03 514583.7
17309 2606.32
Industrial Services 1095263.94
Industrial
LT/LTIS
(P.f. = 0.85) 15684 215.18 266628
45 | P a g e
Sub- No of Consumption
Category Sub-category division consumers (MU) Load(kW)
(L.f. = 0.5)
Industrial
HTS (11kV)
(P.f. = 0.92)
(L.f. = 0.75) 1580 1434.68 662908.75
Industrial
HTSS (all at
33kV)
(P.f. = 0.95)
(L.f. = 0.75) 45 956.45 165727.18
538 367.72
Institutional services 64355
IS-I: Public
Lighting / SS
530 248.74 38560
IS-II: RTS
(70%)
(132kV)
(P.f. = 0.97)
(L.f. = 0.75) 2 83.286 18056.5
IS-II: MES
(30%)
(132kV)
(P.f. = 0.97)
(L.f. = 0.75) 6 35.694 7738.5
Domestic Category
Total No. of consumers in Domestic Category = 3850029 [0]
No. of consumers in Rural Category = 35% * Total No. of consumers in Domestic Category
……………………………………………………………………………………………...(4.1)
46 | P a g e
No. of consumers in Rural Category = 35% * 3850029 = 1347510.15
No. of consumers in Rural Metered = 40% * No. of consumers in Rural Category……….(4.2)
No. of consumers in Rural Metered = 40% * 1347510.15 = 882.5964
No. of consumers in Rural Unmetered =60% * No. of consumers in Rural Category……..(4.3)
No. of consumers in Rural Unmetered = 60% * 1347510.15 = 808506.09
No. of consumers in KutirJyoti = 35% * Total No. of consumers in Domestic Category
…………………….......….(4.4)
No. of consumers in KutirJyoti = 35% * 3850029 = 1347510.15
No. of consumers in KutirJyoti Metered = 40% * No. of consumers in KutirJyoti…..........(4.5)
No. of consumers in KutirJyoti Metered = 40% * 1347510.15 =539004.06
47 | P a g e
Total Number of Consumers in Rural (IAS 1)Unmetered = 90% * Total Number of Consumers
in Rural (IAS 1) ……………………………………………………………...(4.10)
Total Number of Consumers in Rural (IAS 1) Unmetered = 90% * 60249 = 54224.1
Total Number of Consumers inUrban (IAS 2) = 5% * Total Number of Consumers in Irrigation
& Agriculture/IAS Category …………………………………………………...(4.11)
Total Number of Consumers inUrban (IAS 2) = 5% * 63420 = 3171
Total Number of Consumers inUrban (IAS 2) Metered = 10% * Total Number of Consumers in
Urban (IAS 2) ………………………………………………………............................(4.12)
Total Number of Consumers inUrban (IAS 2) Metered = 10% * 3171 = 317.1
Total Number of Consumers in Urban (IAS 2) Unmetered = 90% * Total Number of Consumers
in Urban (IAS 2) ……………………………………………………………..(4.13)
Total Number of Consumers in Urban (IAS 2) Unmetered = 90% * 3171 = 2853.9
Similar percentage divisions calculation have been done for consumption ( MU) and Load (kW)
as it has been for number of consumers above.
Commercial/ Non domestic Category
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Total Load in Industrial LT/LTIS = 266628 kW
Total Number of Consumers in Industrial HTSS (all at 33kV) = 45 [Assumption]
Total Number of Consumers in both Industrial HTS and HTSS = 1625 [0]
Total Number of Consumers inIndustrial HTS (11kV) only =Total Number of Consumers in
both Industrial HTS and HTSS - Total Number of Consumers in Industrial HTSS
…………………………………………………………………………………………….(4.16)
Total Number of Consumers inIndustrial HTS (11kV) only = 1625 – 45 = 1580
Similarly Total consumption by HTS and HTSS category together = 2391.14 MU [0]
Total consumption by HTS category (11kV) = 60% * Total consumption by HTS and HTSS
category together …………………………………………………………………………(4.17)
Total consumption by HTS category (11kV) = 60% * 2391.14 = 1434.684 MU
Total consumption by HTSS category (33kV) = 40% * Total consumption by HTS and HTSS
category together ………………………………………………………………………….(4.18)
Total consumption by HTSS category (33kV) = 40% * 2391.14 = 956.456 MU
Similarly Total Load by HTS and HTSS category together = 828635.94 kW [0]
Total load by HTS category (11kV) = 80% * Total Load by HTS and HTSS category together
…………………………………………………………………………………………….(4.19)
Total load by HTS category (11kV) = 80% * 828635.94 = 662908.752 kW
Total load by HTSS category (33kV) = 20% * Total Load by HTS and HTSS category together
…………………………………………………………………………………...(4.20)
Total load by HTSS category (33kV) = 20% * 828635.94 = 165727.188 kW
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Consumption of IS-II: RTS = 70% * Total number of consumers in RTS & MES together
…………………………………………………………………………….………………(4.21)
Consumption of IS-II: RTS = 70% * 118.98 = 83.286MU
Consumption of IS-II: MES = 30% * Total number of consumers in RTS & MES together
……………………………………………………………………………………..……...(4.22)
Consumption of IS-II: MES = 30% * 118.98 = 35.694 MU
Total Load of RTS & MES together = 25795kW
Total Load of IS-II: RTS = 70% * Total Load of RTS & MES together ………………...(4.23)
Total Load of IS-II: RTS = 70% * 25795 = 18056.5 kW
Total Load of IS-II: MES =30% * Load of RTS & MES together ………………………(4.24)
Total Load of IS-II: MES =30% * 25795 = 7738.5kW
Now firstly I would like to mention the fixed charges and energy charges for various categories
mentioned above in the following table along with total fixed charges, total energy charges for all
the categories as well as total revenue found. The values contained in the following table is taken
as existing tariff values i.e. of the FY 2017-18 which was approved in the FY 2016-17 but came
into force for the year 2017-18. So here goes the existing tariff table:-
Total Total
Fixed Total Reve
Sub- Fixed Energy charge Energy nue
categor Sub- charg charge(R s(Rs Charges (Rs
Category y division Unit e s/kWh) Cr) (Rs Cr) Cr) ABR
Domestic
Rural
(35%)
50 | P a g e
Total Total
Fixed Total Reve
Sub- Fixed Energy charge Energy nue
categor Sub- charg charge(R s(Rs Charges (Rs
Category y division Unit e s/kWh) Cr) (Rs Cr) Cr) ABR
Unmetered Rs/Conn 164.9
(60%) /Month 170 Nil 164.93 0 4
KutirJy
oti
(35%)
Metered Rs/Conn 120.6
(40%) /Month 16 1.25 10.34 110.32 7
Unmetered Rs/Conn
(60%) /Month 60 Nil 58.21 0 58.21
Urban
(30%- Rs/Conn 782.7
30) /Month 80 3.6 110.87 671.86 3
DS HT Rs/kVA/
(11kV) Month 110 3.5 2.15 8.75 10.90
Total
Revenue
from 1306.
domestic 90
Irrigation &
Agricultural
/ IAS
Rural
(IAS 1)
(95%)
Metered Rs/HP/
(10%) Month Nil 0.7 0 1.205 1.205
Unmetered Rs/HP/
(90%) Month 100 nil 13.862 0 13.86
Urban
(IAS 2)
(5%)
Metered Rs/HP/
(10%) Month Nil 1.2 0 0.11 0.11
Unmetered Rs/HP/
(90%) Month 375 nil 2.73 0 2.74 0.99
51 | P a g e
Total Total
Fixed Total Reve
Sub- Fixed Energy charge Energy nue
categor Sub- charg charge(R s(Rs Charges (Rs
Category y division Unit e s/kWh) Cr) (Rs Cr) Cr) ABR
Toatal
Revenue
fom IAS 17.91
Commercial
/ Non
domestic
Urban Rs/kW/ 131.99
(95%) Month 225 6 1 420.107 552.1
Rural Rs/Conn
(5%) /Month 45 2.25 0.641 8.291 8.933 7.61
Total
Revenue
from 561.0
Commercial 3
Industrial
Services
Industri
al
LT/LTI Rs/kVA/ 170.1
S Month 275 5.5 51.76 118.35 0
Industri
al HTS Rs/kVA/ 1091.
(11kV) Month 300 6.25 194.55 896.68 226
Industri
al
HTSS
(all at Rs/kVA/ 459.5
33kV) Month 490 4 76.93 382.58 2 6.60
Total
Revenue
from 1720.
Industrial 84
Institutional
services
IS-I:
Public
Lightin Rs/Conn 130.6
g / SS /Month 55 5.25 0.035 130.59 2 5.51
52 | P a g e
Total Total
Fixed Total Reve
Sub- Fixed Energy charge Energy nue
categor Sub- charg charge(R s(Rs Charges (Rs
Category y division Unit e s/kWh) Cr) (Rs Cr) Cr) ABR
IS-II:
RTS Rs/kVA/
(70%) Month 235 6 3.94 49.97 53.91
IS-II:
MES Rs/kVA/
(30%) Month 260 4.6 1.86 16.42 18.28
Total
Revenue
from 202.8
Institutional 2
3809.
Grand Total 844.24 2965.28 51
To land onto the tariff of various categories of consumers for the FY 2018-19 without having the
knowledge of consumer distribution in various categories, was of great challenge. Only data that I had
was of having the value of Gross ARR. So seeing the past trend of consumer distribution I had to land on
such tariff values that do not vary much from the actual approved tariff and out of which the total revenue
almost matches our earlier found gross ARR. Hence to achieve the goal a bit of back calculation and hit
and trial method was also used.
I would like to mention here that it is not the actual way of finding the tariff as commission has all the
necessary required data for tariff calculation but since we cannot acquire the actual data hence I used my
own way of calculation. Hence here follows the tariff for the FY 2018-19 in the following table below:-
53 | P a g e
Table 4.5- 1: Approved Tariff (for FY 2018-19)
Total
Reve
Energy Fixed nue
Fixed charge charge Energy (Rs AB
Sub- Sub- charg (Rs/k s(Rs Charges Cr) R
Category category division Unit e W) Cr) (Rs Cr)
Domestic
Rural
(35%)
537.7
Metered Rs/Conn 8
(40%) /Month 40 5.8 25.87 511.91
266.8
Unmetered Rs/Conn 1
(60%) /Month 275 nil 266.81 0
KutirJyoti
(35%)
1209.
Metered Rs/Conn 86
(40%) /Month 25 5.3 40.43 1169.44
Unmetered Rs/Conn 0
(60%) /Month 0 0 0 0
1417.
Urban Rs/Conn 27
(30%-30) /Month 80 7 110.87 1306.39
DS HT Rs/kVA/ 18.90 5.47
(11kV) Month 225 5.8 4.40 14.5
Total
Revenue 3450.
from 63
Domestic
Irrigation &
Agricultural
/ IAS
Rural
(IAS 1)
(95%)
Metered Rs/HP/ 14.39
(10%) Month 40 8 0.62 13.77
Unmetered Rs/HP/ 69.31
(90%) Month 500 0 69.31 0
Urban
(IAS 2) 4.86
(5%)
54 | P a g e
Total
Reve
Energy Fixed nue
Fixed charge charge Energy (Rs AB
Sub- Sub- charg (Rs/k s(Rs Charges Cr) R
Category category division Unit e W) Cr) (Rs Cr)
Metered Rs/HP/ 0.76
(10%) Month 40 8 0.03 0.73
Unmetered Rs/HP/ 3.65
(90%) Month 500 0 3.65 0
Total
Revenue 88.11
from IAS
Commercial/
Non
domestic
Rs200 491.7
Urban Rs/kW/ /conn/ 7
(95%) Month mon 6.25 54.16 437.61
Rural Rs/Conn 20.94 6.95
(5%) /Month 60 5.45 0.86 20.08
Total
Revenue 512.7
from 1
Commercial
Industrial
Services
148.4
Industrial Rs/kVA/ 6
LT/LTIS Month 160 5.5 30.11 118.35
Industrial 1130.
HTS Rs/kVA/ 5.75/k 21
(11kV) Month 300 VAh 194.55 935.66
Industrial 529.9
HTSS (all Rs/kVA/ 4/kVA 4 6.94
at 33kV) Month 500 h 76.88 453.05
Total
Revenue 1808.
from 62
Industrial
Institutional
services
149.3
IS-I: Rs/Conn 1 5.81
Public /Month 110 6 0.069 149.24
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Total
Reve
Energy Fixed nue
Fixed charge charge Energy (Rs AB
Sub- Sub- charg (Rs/k s(Rs Charges Cr) R
Category category division Unit e W) Cr) (Rs Cr)
Lighting /
SS
IS-II:
RTS Rs/kVA/ 4.6/kV 45.09
(70%) Month 360 Ah 6.03 39.07
IS-II:
MES Rs/kVA/ 4.6/kV 19.33
(30%) Month 360 Ah 2.58 16.74
Total
Revenue 213.7
from 4
Institutional
6073.
79
Grand Total 887.24 5186.56
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4.6.2. Power Factor and Load Factor
Although mentioned in the above table yet a brief summary of power factor and load factor for various
voltage levels is given in the following 2 tables:-
LTIS 0.85
11 kV 0.92
33 kV 0.95
132 kV 0.97
57 | P a g e
Category wise Average Billing Rate (ABR) = Total Revenue incurred from that category(i.e .energy
+ fixed charges)*10/ Total consumption in MU of that category………………………………..(4.36)
Tariff Hike refers to the percentage increase in overall revenue at the present tariff approved by the
Commission in comparison to the revenue as per the tariff approved for the previous year
Tariff Hike =[ (Approved Tariff - Existing Tariff)*100]/Existing Tariff ………………………(4.37)
Tariff Hike = [(6073.799308 - 3809.51592193)*100]/3809.51592193
= 59.44%
ACos (Average Cost of Supply) (in Rs/kWh) = [Gross ARR(in Rs Cr) / Total Energy Sales (inMU)]
* 10 ………………………………………………………………………………………………(4.38)
ACos (Average Cost of Supply) = (6073.24/10196.57) *10 = Rs5.95616/kWh
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Chapter 5 : Changes brought in the tariff structure for FY 2019-20
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4. Migration from kWh based billing to kVAh based billing
Migration to kVAh based billing from existing kWh based billing for LTIS consumers in order
to get the full recovery of all the components of Generation, Transmission and Distribution like
capital cost, fuel cost, system losses etc. and to ensure grid discipline and stability.
Power factor rebate/penalty for LTIS consumers has been removed.
5. kW based Demand Charges
Once 100% metering is completed for considering the shift from fixed charges per connection
to per kW based billing will be considered for the domestic consumers, commercial consumers
and agriculture consumers as this requires replacement of installed meters with smart meters as
targeted under the UDAY Scheme.
6. Power Factor Penalty/Rebate
Since bulk of the Tariff Categories have moved to kVAh based billing, which has an in-built
rebate/penalty for power factor, therefore the Power Factor Penalty/Rebate has been removed.
7. The commission has disallowed the purchase or sale of excess power in the present order. The reason
behind this is that a petitioner can sell surplus power on unscheduled interchange basis and only if
the revenue from sale is more than the purchase cost ,the petitioner can be benefitted from this, which
happens rarely. 3
3
http://jserc.org/pdf/tariff_order/jbvnl2019.pdf
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Chapter 6 : Results and discussion
6.1. Results
6.2. Discussions
As it has been observed that earlier depreciation used to be calculated on Closing GFA which was
not a correct way, so this has been corrected from FY2019-20. The correct way is to calculate the
depreciation on Average GFA which is now being done.
Now onwards a strict rule for quality of supply of power is given more focus. That is continuous
power supply should be done allowing on an average of only 4 hrs of power cut on daily basis.
Failing to which discom shall suffer as fixed charges of consumers shall reduce which in turn get
the discoms face the losses.
A brief overview about Tariff and Tariff Structure of the state of Bihar for FY2019-20 is
discussed.[15]
61 | P a g e
Bihar Electricity Regulatory Commission (BERC) has disallowed the power tariff hike as the
increase in number of consumers due to Saubhagya, and decrease in Aggregate Technical &
Commercial (AT & C) losses have contributed in decrease of expenses on one hand while increase
in revenue of the discoms on the other hand.
Two new sub-categories ‘Har Ghar Nal’ and ‘DS-III’ (for group residential consumers) have been
allowed to be introduced.
The average power purchase cost of the discoms is Rs4.09 per kWh, while the average cost of
supply is Rs6.84 per kWh.
BERC approved the proposal to allow charging of electric vehicles under respective tariff
categories. This move is aimed at curbing air pollution by promoting electric vehicles in place of
petro-based vehicles.
The BERC allowed reduction in the surcharge on delayed payment of bills from 1.5% per month
to 1.25%. However, the commission turned down the proposal to enhance the rate of rebate for
online payment of bills from 1% at present to 1.5%.
62 | P a g e
.
Chapter 7 : Conclusion and Recommendations
Tariff fixation is required so that on one hand a DISCOM can recover its revenue requirement
while on the other hand the consumers are protected from tariff shocks. By the fixation of tariff
rates periodically, revenue gaps can be minimized or removed and we get a cost reflective and
transparent tariff structure for retail consumers through simplification of tariff categories and slab
structures.
In order to ensure that fixed costs are largely recovered through fixed component of tariff, it is
important that the energy charges and fixed or contract demand charges are progressively adjusted
with the fixed component being increased with a corresponding reduction in energy charges. Also,
increase in fixed charges shall act as a deterrent to theft of electricity as the incentive to manipulate
consumption will progressively lower down with reducing variable energy charges. On the other
hand, the energy charges should be kept in such a way that it incentivizes consumers to adopt
rooftop solar under Net Metering Regulations in line with the country’s ambitious target of
achieving 100 GW of solar power by 2022, 40 GW of which is targeted from rooftop solar.
Till present date any analysis or study has not been done on Voltage wise Cost of Supply (VCoS).
We very well know that there are consumers at different voltage levels. In high tension
transmission losses are low while on the other hand, losses are more in low tension transmission.
High tension consumers use only the HT asset whereas the low tension consumer uses both the
LT and HT asset. Yet LT consumers have to pay very less tariff as compared to HT consumers
which is not appropriate. This needs to be assessed.
As we know that there are two sides i.e. supply side and demand side in electricity system.
Presently only the supply side is being controlled whenever there is any variation in the demand
side. But controlling the supply side is not at all a cost economic process. In actual, for the tariff
to be cost reflective in nature, tariff should be increased for the consumers who suddenly increase
63 | P a g e
or decrease their demand, which does not happen in the present situation. Therefore DSM is an
important factor that should be taken care of.
Energy efficiency should also be increased i.e. by using energy saving (5 star rated) appliances.
In this way upto some extent demand side can be managed to some extent.
To obtain the benefits of Smart Grid concepts of DSM and Demand Response to the fullest, it is
required that innovative dynamic tariff structures are designed through which the benefits of
Smart grids can be realized by all the stakeholders at the revenue generation end of the electricity
value chain right from consumer, distribution company, state governments and the nation. So
frequency based tariff component as well as preannounced Time of Day tariff charging higher
price for peak load periods based on historical data may be useful.[12]
The current pricing mechanism for Indian consumers primarily focuses on recovery of cost of
generation and service cost and as it is highly cross subsidized it does not provide appropriate
signal to end consumer for judicious use of electricity. If some price component are added to
existing tariff that could reflect the real time imbalances, the end consumers may shift their load
to get some incentive or to avoid disincentives. This necessitates design of Dynamic tariff that
will not always remain same to encourage participation of end consumers in DR/DSM programs.
So finally in a nutshell it is concluded that we need a governing body which handles the system in
an efficient manner. So for this purpose all these electricity regulatory commission, electricity
act, tariff structures etc have been formulated so that the society and its needs are fulfilled and
the system runs in a smooth way. If case of any kind of discrepancy or loopholes in the system ,
or a distribution licensee doesn’t work in a proper way as it should do, it is our responsibility to
bring in knowledge of the system about this by complaining in the consumer grievance re-
addressal forum so that proper action is taken. This was the part of proper functioning of the
distribution body, but even consumers need to play a very important role of being responsible
citizens, by preventing the electricity thefts, by paying the electricity bills on time. In this way if
each and every part of the system works sincerely no obstruction can stop from the betterment of
the society and country in turn.
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References
1. https://energy.economictimes.indiatimes.com/energy-speak/demystifying-power-tariffs-an-
imperative-for-electricity-sector-s-growth/3002
2. https://economictimes.indiatimes.com/et-personal/moratorium-period-what-its-all-
about/articleshow/212354.cms
3. https://www.electrical4u.com/electric-power-generation/
4. https://www.electrical4u.com/electrical-power-transmission-system-and-network/
5. https://www.ibef.org/industry/power-sector-india.aspx
6. https://en.m.wikipedia.org/wiki/Electric_power_distribution
7. JSERC tariff order for 2019 http://jserc.org/pdf/tariff_order/jbvnl2019.pdf
8. Electricity supply code http://jserc.org/pdf/regulations/2018_08_11.pdf
9. Regulations for Distribution Tariff http://jserc.org/pdf/regulations/46_2_2016.pdf
10. JSERC tariff order for 2018 http://jserc.org/pdf/tariff_order/jbvnlarr2018.pdf
11. JSERC tariff order for 2017 http://jserc.org/pdf/tariff_order/jbvnl2017.pdf
12. http://www.indiasmartgrid.org/reports/Dynamic%20Tariffs%20White%20Paper.pdf
13. https://www.bijlibachao.com/electricity-bill/understand-time-of-day-tod-time-of-use-tou-tariff-
structure-and-how-it-impacts-customers.html
14. https://www.smartgrid.gov/recovery_act/time_based_rate_programs.html
15. https://timesofindia.indiatimes.com/city/patna/no-change-in-power-tariff-for-2019-
20/articleshow/68158198.cms
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