16 th annual report of kerc 2014-15 - karnataka · 17 thannual report 2016 karnataka electricity...

Karnataka Electricity Regulatory Commission

6th& 7th Floors, Mahalaxmi Chambers

No.9/2, Mahatma Gandhi Road, Bengaluru - 560 001

Tel: 080 – 25320213 / 214, 25320339, 25323765

Fax: 080 – 25320338

Email: [email protected]

Website: www.karnataka.gov.in/kerc

2015-16

Seventeenth

Annual

Report

17thAnnual Report

2016


KARNATAKA ELECTRICITY REGULATORY COMMISSION

SEVENTEENTH

ANNUAL REPORT

2015– 16

6th& 7th Floors, Mahalaxmi Chambers

No.9/2, Mahatma Gandhi Road, Bengaluru - 560 001 Tel: 080 – 25320213 / 214, 25320339, 25323765, Fax: 080 – 25320338 Email: [email protected] Website: www.karnataka.gov.in/kerc

17thAnnual Report

2016


C O N T E N T S

SL.NO. PARTICULARS PAGE No.

1 Foreword 4

2 Introduction 6

3 The Commission & its functions 7-9

4 The Commission’s Office & Functions of the

Secretary

10-14

5 Power Sector- An Overview 15-16

6 Important events during the year 17-34

7 Activities of the Commission in 2015-16 36-58

8 Advisory Committee of the Commission 60-61

9 Implementation of the RTI Act 13

10 Budget and actual expenditure of the

Commission

12

11 Administration 12

12 Commission’s Court Proceedings 63-65

13 Consumer Grievances Redressal 66-68

14 Program for the year ahead 70-71

15 Implementation of Kannada in the Commission 14

17thAnnual Report

2016


KARNATAKA ELECTRICITY REGULATORY COMMISSION

M.K. SHANKARALINGE GOWDA, IAS (RTD)

CHAIRMAN

6th & 7th Floors,

Mahalaxmi Chambers,

#9/2, M.G.Road,

Bengaluru-560 001

FOREWORD

It gives me an immense pleasure to present this Seventeenth Annual Report for the

Financial Year (FY) 2015-16 of the Karnataka Electricity Regulatory Commission, as

envisaged by the section 105 of the Electricity Act, 2003. The report also provides a

summary of the Commission’s budget and the actual expenditure for the FY2015-16. It

delineates the activities of the Commission during FY2015-16, in addition to planned

activities for ensuing FY2016-17.

The Commission had issued Multi Year Tariff Orders for One Transmission Company,

Five Distribution Companies, Two Special Economic Zones and One Rural Electric Co-

operative Society for the period FY17-FY19, along with the Annual Performance Review for

the FY15, and revision of retail supply tariff for the FY17. The Commission had issued Grid

Code, Distribution Code and draft Regulations on Forecasting, Scheduling, Deviation

Settlement Mechanism in respect of Wind and Solar generation. The Commission had

issued the draft amendment Regulations on Multi Year Tariff determination for transmission

and distribution-licensees.

During the year I had assumed charge as Chairman of the Commission. My

colleague Members Sri H.D.Arun Kumar and Sri D.B.Manival Raju, have ably supported me

in discharging functions of the Commission. The officers, members of staff and the

consultants, ably assisted the Commission in carrying out various activities.

Also, I place on record the support and advice provided by the Members of the

Advisory Committee, the Utilities and the Stakeholders.

M.K. SHANKARALINGE GOWDA, IAS (Rtd),

CHAIRMAN

17thAnnual Report

2016


Brief History

of


17thAnnual Report

2016


2. INTRODUCTION

The Karnataka Electricity Regulatory Commission (KERC) was established in

1999 and began functioning from 15th November, 1999. The establishment of

the Karnataka Electricity Regulatory Commission was in accordance with the

provisions of Karnataka Electricity Reform Act, 1999. The KERC has continued

to function under the Electricity Act, 2003 which was enacted by the

parliament and notified on 10th June, 2003 by the Government of India.

As per Section 105(1) of the Electricity Act 2003, the KERC is required to

prepare an Annual Report, giving a summary of its activities during the

previous year, the copies of which are to be forwarded to the State

Government. Further, as per Section 105(2) of the Electricity Act 2003, these

Annual Reports are to be laid before the State Legislature.

This is the Seventeenth Annual Report of the Commission. It includes summary

of the activities of the Commission during the financial year 2015-16 and the

proposed program for the financial year ahead i.e. 2016-17. The report also

contains the Budget for the financial year 2016-17 and the actual

expenditure for the financial year 2015-16.

During the financial year 2015-16, the Commission has issued Tariff Orders for

Financial Year 2016-17 in respect of the Transmission and Distribution utilities

and Special Economic Zone (SEZ) namely, Karnataka Power Transmission

Corporation Ltd; Bangalore Electricity Supply Company Ltd, Mangalore

Electricity Supply Company Ltd, Chamundeshwari Electricity Supply

Corporation Ltd, Hubli Electricity Supply Company Ltd, Gulbarga Electricity

Supply Company Ltd, Mangalore SEZ, AEQUS SEZ and the Hukeri Rural Electric

Co-operative Society. The Commission has disposed of 60 petitions during

the year. The details of the Commission’s activities are discussed in the

subsequent chapters.

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2016


Functions of the Commission

17thAnnual Report

2016


3. THE COMMISSION & ITS FUNCTIONS:

3.1 THE COMMISSION

The Commission consists of the Chairman and two Members.

Sri M.K. Shankaralinge Gowda, IAS (Retd.) is the Chairman of the Commission.

Sri H.D Arun Kumar and Sri D.B Manival Raju are the Members of the

Commission.

3.2 FUNCTIONS OF THE COMMISSION

(1) As per Section 86 of the Electricity Act, 2003, the State Electricity

Regulatory Commissions are required to discharge the following

functions:

(a) Determine the tariff for generation, supply, transmission and wheeling of

electricity, wholesale, bulk or retail, as the case may be, within the State;

(b) Regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured from

the generating companies or licensees or from other sources through

agreements for purchase of power for distribution and supply within the

State;

(c) Facilitate intra-state transmission and wheeling of electricity;

(d) Issue licences to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their

operations within the State;

(e) Promote cogeneration and generation of electricity from renewable

sources of energy by providing suitable measures for connectivity with

the grid and sale of electricity to any person, and also specify, for

purchase of electricity from such sources, a percentage of the total

consumption of electricity in the area of a distribution licensee;

17thAnnual Report

2016


(f) Adjudicate upon the disputes between the licensees, and generating

companies and to refer any dispute for arbitration;

(g) Levy fee for the purposes of the Electricity Act;

(h) Specify State Grid Code consistent with the Grid Code specified under

clause (h) of sub-section (1) of section 79;

(i) Specify or enforce standards with respect to quality, continuity and

reliability of service by licensees;

(j) Fix the trading margin in the intra-State trading of electricity, if

considered necessary; and

(k) Discharge such other functions as may be assigned to it under this Act.

(2) The State Commission is also required to advise the State Government

on all or any of the following matters, namely: -

(i) promotion of competition, efficiency and economy in activities of the

electricity industry;

(ii) promotion of investment in electricity industry;

(iii) reorganization and restructuring of electricity industry in the State;

(iv) matters concerning generation, transmission, distribution and trading of

electricity or any other matter referred to the State Commission by the

State Government.

The State Commission is required to ensure transparency while exercising its

powers and discharging its functions.

In discharge of its functions, the State Commission is being guided by the

National Electricity Policy, National Electricity Plan and Tariff Policy

published under Section 3 of the Electricity Act, 2003.

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2016


Functions of Secretary

&

Activities of the Office of the Commission

17thAnnual Report

2016


4. THE COMMISSION’s OFFICE & FUNCTIONS OF THE SECRETARY:

4.1 THE COMMISSION’s OFFICE

The Chairman of the Commission is its Chief Executive as per Section 84 of the

Electricity Act, 2003. The Commission is supported by the Secretariat,

headed by the Secretary Capt. Dr. K. Rajendra, KAS.

Besides the Secretary, the Commission’s Office has senior level officers on

contract serving as Director (Tariff), Consultant (Tech) and Consultant (Legal).

The Office also has Deputy Directors and other supporting staff. The details of

the Officers and Staff working in the Commission are mentioned later in this

report. The Organization chart of the Commission is enclosed at Annex – 1.

4.2 FUNCTIONS OF THE SECRETARY:

The major functions of the Secretary are as follows:

(a) To supervise and guide the functioning of all the Officers and Staff of the

Commission;

(b) To prepare or cause to be prepared briefs and summaries of all pleadings

presented by various parties in each case before the Commission in

discharge of its functions;

(c) To assist the Commission in the proceedings relating to the powers

exercisable by the Commission;

(d) To ensure execution of the orders passed by the Commission;

(e) To collect from the State Government or other offices, companies or firms

or any other party as may be directed by the Commission, such

information as may be considered useful for the purpose of efficient

discharge of the functions of the Commission under the Act and place the

said information before the Commission; and

(f) To keep in his custody the seal and records of the Commission.

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2016


5. ADMINISTRATION:

The office of the Commission consists of permanent employees and

officers/officials on deputation and on contract basis. The total working

strength of the staff of the Commission at the end of the Financial Year 2015-

16 is 41. The break-up of 41 Nos. is as follows:

a) Permanent Employees 4

b) Officers/Staff on deputation 12

c) Employees on Contract 21

d) Consultants on Contract 04

TOTAL 41

6. BUDGET & ACTUAL EXPENDITURE OF THE COMMISSION

The following table shows the details of budget estimates and actual

expenses for the FY2015-16:

In Rs. Lakhs

Major Expenditure

Head

Budget

Estimate

Expenditure

for 2015-16

Variation in

Budget

Estimates

Establishment expenses 514.00 479.00 (+)35.00

Office Expenses 362.60 276.98 (+)85.62

Total 876.60 755.98 (+)120.62

The State Government provided a total grant of Rs.312.00 lakhs to the

Commission during the financial year 2015-16. The same has been drawn

from the Government. The expenditure in excess of grant received was met

out of the annual Licence/ Tariff Application fee and other fee collected by

the Commission during the financial year.

17thAnnual Report

2016


7. IMPLEMENTATION OF THE RTI ACT:

Status of applications / appeals received and disposed of during 2015-16

under the Right to Information Act, 2005:

The following is the status of applications/appeals received and disposed of

during 2015-16 under the Right to Information Act, 2005:

No. of

applications

received

No. of

applications

disposed of

Fee

collected

No. of

appeals

received

No. of appeals

disposed of

during the year

54 54 Rs. 2066 4 4

The Appellate Authority under the RIGHT TO INFORMATION ACT, 2005 is:

Secretary,

Karnataka Electricity Regulatory Commission,

9/2, Mahalakshmi Chambers, 7th floor,

M G Road,

Bengaluru - 560 001

Phone No. 25320213

Fax No. 25320338

The PUBLIC INFORMATION OFFICER under the RTI ACT is:

Assistant Secretary,

Karnataka Electricity Regulatory Commission,

9/2, Mahalakshmi Chambers, 6th floor,

M G Road,

Bengaluru - 560 001

Phone No. 25320213

Fax No. 25320338

17thAnnual Report

2016


8. USE OF KANNADA IN THE COMMISSION’s

ADMINISTRATION:

Kannada is used as a medium of communication in the office of the

Commission. The Annual Report is also published by the Commission both in

Kannada and English languages.

All Regulations and Notices of public interest are being issued in Kannada

language. The Commission is making a continuous and sustained efforts for

implementation of Kannada as the official language.

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2016


Overview of Generation, Transmission

&

Distribution for FY16

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2016


9. Power Sector – An Overview

9.1 Status of Power Generation in the State:

View of Supa Hydro Power Generating Station (Source: KPCL Website)

The installed capacity of power generation in Karnataka as on 31.03.2016

including the share of the State in the central projects is as indicated below:-

(Figures in MW)

Source Hydro Thermal Others Total

KPCL & VVNL 3787 2720 6507

Private Generating Companies -

UPCL

1200 1200

Cogeneration & Renewables 5553 5553

State Total 3787 3920 - 13260

Central Projects (State’s Share) 2477 2477

Total 3787 6397 5553 15737 Source: KPTCL daily generation sheet.

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2016


9.2 Green Power in Karnataka:

The following is the potential, commissioned and envisaged further

capacity addition of green power upto 2016 in the State:

Figures in MW

SL

No

Renewable

Energy

Sources

Potential

Capacity

Capacity

Allotted

Capacity

Commissioned

Cancelled

Capacity in

MW

Balance

Allotted

capacity to be

Commissioned

1 Wind 13983 13929 2916 3427 7585

2 Mini Hydel 3000 3015 836 730 1450

3 Solar 10000 1994 134 70 1790

4 Co-

generation 1500 1847 1252

11 584

5 Biomass 1000 370 134 0 236

6 Municipal

Solid Waste 135 25 0

0 25

Total 29618 21180 5272 4238 11670

Source: KREDL Website as on 31.03.2016

Hydro, 3787, 24%

Thermal, 6397, 41%

Wind, 2916, 18%

Solar, 134, 1%

Co-gen, 1252, 8%

Mini hydel, 835, 5%

Captive gen, 416, 3%

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2016


9.3 Status of Transmission in the State:

An overview of the State Transmission system as on 31.03.2016 is shown

below:

(Source: KPTCL Website)

During the FY16, the KPTCL has handled peak load of 9508 MW on 29th

March, 2016.

9.4 Status of Distribution System in the State:

The Distribution System in the State is vested with five Distribution companies

(ESCOMs), one Rural Electricity Co-operative Society and two SEZ viz;

1. Bangalore Electricity Supply Company Ltd., (BESCOM)

2. Mangalore Electricity Supply Company Ltd., (MESCOM)

3. Chamundeswari Electricity Supply Corporation Ltd., (CESC)

4. Hubli Electricity Supply Company Ltd., (HESCOM)

5. Gulbarga Electricity Supply Company Ltd., (GESCOM)

6. Hukeri Rural Electricity Co-Operative Society (Hukeri RECS)

7. Mangalore Special Economic Zone (MSEZ)

8. AEQUS Special Economic Zone (ASEZ)

Voltage Level in

KV No.of Stations

Transmission Line in

Ckt. Kms

400 4 2683.324

220 97 10948.849

110 385 10193.612

66 602 10425.502

33 345 8770.540

TOTAL 1433 43021.827

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2016


Important statistics relating to the distribution system in the State are given

below:

9.4.1 Source wise Generation:

The source wise generation to meet the demand of the ESCOMs in the State

during the FY16, is indicated in the following table:

SOURCE Energy*

in

MU

KPCL Hydel 7240.91

KPCL Thermal 16171.68

Central Generating

Stations 15688.52

Major IPPs 7634.39

N C Es (Minor IPPs) 4995.29

Medium term 3389.10

Short-term 4824.02

Others 1696.09

Total 61640.00

* Provisional data as furnished by SLDC

Sl.

No. Particulars (As on 31.03.2016) BESCOM MESCOM CESC HESCOM GESCOM

Hukeri

RECS

1. Area Sq. km. 41092 26222 27773 54513 43861 991.49

2. Districts Nos. 8 4 5 7 6 -

3. Taluks Nos. 46 22 29 49 31 1

4. Population lakhs 207 61.55 81.55 166 112 3.571

5. Consumers lakhs 101.47 21.53 28.50 42.46 27.54 1.17

6. Energy

Consumption

MU 24538.18 4869.14 6256.07 10072.25 6476.64

264.36

7. Zone Nos. 3 1 1 2 2 -

8. DTCs Nos. 236672 54056 94258 146138 76884 2038

9. Assets Rs. in Crores 17191.53 1003.44 2606.38 7387.60 50.00

10. HT lines Ckt. kms 89297.69 31639.94 46981.34 66080.93 52486.78 1291

11. LT lines Ckt. kms 163045.47 76808.49 79377.80 115152.92 83058.63 3970

12.

Total

employees

strength:

A Sanctioned Nos. 21819 8786 10411 15802 10330 226

B Working Nos. 13539 5551 5548 8870 6031 140

13. Demand Rs. in Crores 14182.81 2353.04 2919.56 5419.17 3451.50 131.10

14. Collection Rs. in Crores 14037.95 2398.17 2963.05 5442.73 3388.37 133.03

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2016


The shortage of 4824 MU was met through short-term power purchase and

other sources, consequent to severe drought during the year. Contribution

from the KPCL Hydel and mini Hydel was drastically reduced by about 6000

MU, during the Financial Year 2016.

9.4.2 Energy Consumption for FY12 to FY16:

The category wise sales made by the ESCOMs and the Hukeri RECS in the

State are as follows:

ESCOMs and Hukeri RECS No. of Installations and Sales Details for FY12 to FY16

Category

Consumer

Category

FY12 FY13 FY14 FY15 FY16*

No.of

Installations

Energy

Sold in

MU

No.of

Installations

Energy

Sold in

MU

No.of

Installations

Energy

Sold in

MU

No.of

Installations

Energy

Sold in

MU

No.of

Installations

Energy

Sold in

MU

LT-1

Bhagya

Jyothi 2776839 506.91 2720200 515.01 2753905 551.16 2809060 492.61 2834626 574.80

LT-2

Domestic

AEH & Pvt.

Educational

Institutions 11594059 8693.00 11899754 8708.26 12510022 9189.11 13082516 10048.10 13809568 10605.93

LT-3 Commercial 1537019 2506.87 1587215 2512.79 1680917 2614.95 1766970 2839.28 1903128 3031.77

KPCL Hydel, 7240.91, 12%

KPCL Thermal, 16171.68, 26%

Central Generating

Stations, 15688.52, 25%

Major IPPs , 7634.39, 12%

N C Es (Minor IPPs) , 4995.29,

8%

Medium term, 3389.1, 6%

Short-term , 4824.02, 8%

Others , 1696.09, 3%

Energy in MU

17thAnnual Report

2016


LT-4a

Irrigation

Pumpsets-

upto 10 HP 1924885 14295.60 2008432 16967.9 2110075 16810.87 2260411 17732.15 2400076 18924.92

LT-4(b) &

(c)

Irrigation

Pumpsets-

More than

10 HP &

Horticulture 9405 42.79 11400 62.19 11962 49.85 13206 55.47 13377 44.34

LT-5 LT Industries 328348 1864.25 347408 1848.53 370168 1839.34 387471 1889.12 414198 1904.81

LT-6

Water

Supply 107136 980.79 115411 960.41 127131 1054.96 138769 1037.19 146294 1068.17

LT-6 Street Lights 122443 804.73 114399 851.78 118847 814.52 125217 876.33 130372 882.56

LT-7

Temporary

Power &

Adversiting

Hoardings 206757 215.23 252800 210.64 350997 209.32 449127 263.05 593780 241.74

LT- Total 18606891 29910.17 19057019 32637.5 20034024 33134.08 21032747 35233.32 22245419 37279.04

HT-1

HT- Water

Supply 493 1189.21 541 1178.07 629 1338.12 714 1439.67 770 1476.66

HT-2a

HT-

Industries 7827 8045.55 8037 8156.68 8647 8484.53 9261 8196.85 10453 7901.75

HT-2b

HT

Commercial 5910 3490.8 6264 3403.05 6384 3288.01 6679 3235.59 7765 3089.21

HT-2c

HT-

Educational

Institutions /

Hospitals 0.00 0.00 0 0 735 252.94 1070 431.17 1351 502.97

HT-3(a) &

(b)

HT Irrigation

& LI

Schemes 367 192.26 410 268.70 488 321.25 558 333.18 623 391.33

HT-4

Residential

Apartments 375 181.63 417 181.36 336 175.17 342 175.85 395 145.61

HT-5

Temporary

Power 0 0 113 48.79 237 90.88 399 322.84 593 107.80

HT- Total 14972 13099.45 15782 13236.7 17456 13950.90 19023 14135.14 21950 13615.34

Total 18621863 43009.62 19072801 45874.1 20051480 47084.98 21051770 49368.43 22267369 50894.38

Transmission and Distribution losses:

The Karnataka Power Transmission Corporation Ltd., is the State Transmission

utility vested with the function of transmitting power from the generating

stations to the interface points with the ESCOMs. In the process, the loss of

energy due to technical reasons is incurred in the transmission system. This

transmission loss is accounted by the KPTCL. The KPTCL has initiated various

measures like, augmentation of stations / lines introduction of new stations /

lines to bring down the transmission losses in the system. The KPTCL had

17thAnnual Report

2016


reported transmission loss of 3.67% for the FY15, as against the approved

transmission loss of 3.92%. For the year FY16, the KPTCL had reported

transmission losses of 3.535%, a reduction of 0.135% from the previous year.

The approved loss level for the FY16 was 3.90%.

Transmission loss of 3.535%, exclusive of southern region losses, is reported by

the KPTCL for the financial year 2015-16.

Transmission losses of the KPTCL in the past five years are as follows:

Figures in percentage Particulars FY11 FY12 FY13 FY14 FY15 FY16

As approved by KERC 4.00 3.98 3.96 3.94 3.92 3.90

As reported by KPTCL 4.39 4.54 3.81* 3.80* 3.67* 3.535*

* Transmission losses excluding southern region losses. All other figures are inclusive of southern region

losses.

The ESCOMs enter into power purchase agreements with generators and the

same is accounted for, at generation bus of the generating stations. This

energy is transmitted through transmission system of the KPTCL to the

interface points with ESCOMs, which in turn distribute the energy through their

distribution network to cater to their consumers. Further, in the distribution

system, in addition to technical losses, commercial losses viz. errors in

metering, billing and collection, theft / pilferage of electricity etc. are also

incurred.

The approved distribution losses for the ESCOMs for the year FY16 are as

follows:

Figures in percentage

Name of the ESCOM Approved distribution

losses for FY16

BESCOM 13.40

MESCOM 11.25

CESC 14.50

HESCOM 17.50

GESCOM 16.50

Hukeri RECS 14.50

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Trajectory of distribution losses of the ESCOMs in the past five years are as

follows:


Name of the ESCOM FY11 FY12 FY13 FY14 FY15 FY16*

BESCOM 14.48 14.46 13.82 13.89 13.53 12.01

MESCOM 13.07 12.09 11.88 11.93 11.57 11.50

CESC 15.48 16.20 15.07 14.73 13.89 13.60

HESCOM 19.85 19.99 19.96 18.05 16.74 16.86

GESCOM 22.06 21.71 19.09 17.77 18.93 18.98

Hukeri RECS 15.15 15.30 14.91 15.25 15.04 15.23 * As provisional data furnished by ESCOMs.

The overall transmission and distribution losses for the State in the past six

years are as follows:


FY11 FY12 FY13 FY14 FY15 FY16*

21.26 19.96 19.61 18.92 18.63 17.36 * Based on provisional data

9.4.3 The RPO Compliance of the ESCOMs and the Open Access [OA]

Consumers in the FY16:

I. Renewable Energy Purchase Obligation (RPO)

The Commission exercising its power under Section 86(1)(e) of the Electricity

Act, 2003 has specified, the percentage of energy to be sourced from

renewable sources by the obligated entities through Regulations. The Status

of compliance of the RPO by the ESCOMs and the OA Consumers for the

FY16 is indicated below:

(a) Status of the RPO Compliance by the ESCOMs:

The Status of the RPO Compliance for the FY16 by ESCOMs is indicated

below:

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ESCOM

Energy

Purchased-

MU

Non-Solar RPO Solar RPO

%RPO

Target

Non-solar

RPO Target

MU

RE

purchased-

MU- i.e.

RPO met

%Non-

solar

RPO

met

%RPO

Target

RPO

Target

MU

Solar Energy

purchased-

MU

% Solar RPO

met

BESCOM 29143.62 10 2914.36 4975.61 17.07% 0.25 72.86 131.85 0.45

MESCOM 5027.72 10 502.77 708.78 14.10% 0.25 12.57 42.15 0.84

CESC 6444.82 10 644.48 721.96 11.20% 0.25 16.11 25.22 0.39

HESCOM (including HRECS)

12780.05 7 894.60 1143.41 8.95% 0.25 31.95 53.31 0.42

GESCOM 8244.39 5 412.22 560.95 6.80% 0.25 20.61 45.28 0.55

Total 61640.60 8.71 5368.43 7388.75 11.99% 0.25 150.10 297.81 0.48

Note: Compliance is based on provisional data

The Commission would validate the data furnished by the SLDC while passing

the tariff order for the 2017-18 and would pass appropriate orders in the

matter if required.

(b) Status of RPO Compliance by Consumers availing Open Access:

The Status of compliance by Consumers availing Open Access as per the

information furnished by the SLDC indicates that fourteen out of thirty-four

consumers had complied with the RPO for the FY-16. The Commission is in the

process of validating the data furnished by the SLDC and would take

appropriate action in the matter.

Tariff for Renewable Sources of Energy:

The Commission had revised the tariff for Wind Power Projects vide order

dated 24th February, 2015. The approved tariff and abstract of the

parameters considered for determination of tariff are as follows:

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2016


Parameter As per Order dated 24.02.2015

Debt: Equity 70:30

Return on Equity 16%

Income Tax on RoE Pass through

Interest on term loan 12.5%

Depreciation 5.83% -First 12 years

1.20% for remaining period

Interest on WC 13.00%

WC 2-months receivables

Capital Cost[CC] - Rs. Crs/MW 6.00

O& M for base year Rs. 9.51 L/MW

O & M annual escalation 5.72%

Plant Load Factor/Capacity Utilisation

Factor

26%

Auxiliary Consumption 0.5%

Tariff Rs/Unit

4.50 for the term of PPA

[Levelised for the plant life

period]

The Commission had revised the tariff for Mini-Hydel, Bagasse based

co-generation, Biomass plants (Water cooled condenser), Biomass (Air

cooled condenser). The approved tariff and abstract of the parameters

considered for determination of tariff are as follows:

i. Mini-Hydel:

Parameter 2015 Order

Debt: Equity 70:30

RoE 16%




And balance spread over life

of the project



Capital Cost[CC] -RsCrs/MW 6.20

O& M as percentage of CC for base

year

2.0% of CC


PLF/CUF 30.0%

Auxiliary 1.0%

Tariff

Rs/Unit

4.16 for the term of PPA

[Levelised for the plant life

period]

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2016


ii. Bagasse based co-generation


Debt: Equity 70:30

Return on Equity 16%




and balance spread over life

of the project

Interest on Working Capital 13.25%

Working Capital 2-months receivables

Capital Cost - RsCrs/MW 4.75

O& M as percentage of CC for base

year

3% of CC


PLF/CUF 60%

Auxiliary consumption 9.0%

Fuel Price Rs/MT 1600 in base year

with 5.72% annual escalation

Sp. Fuel Consumption Kg/unit 1.60

Tariff in Rs/Unit

Fixed cost Levelized for life of

the Projects:

Rs.2.02/unit

Variable cost [Rs/Unit]

applicable to the relevant

year:

FY-15 : Rs.2.81 (Base year)

FY-16 : Rs.2.97

FY-17 : Rs.3.14

FY-18 : Rs.3.32

iii. Biomass –Water cooled condenser based plant:


Debt: Equity 70:30

RoE 16%




And balance spread over life

of the project



Capital Cost[CC] -RsCrs/MW 5.70

O& M for base year Rs.30L/MW


PLF/CUF 75%

Auxiliary 10%

Fuel Price

Rs/MT

2100 in base year

with 5.72% annual escalation

Sp. Fuel Consp.

Kg/unit

1.21

17thAnnual Report

2016


Tariff

Rs/Unit

Fixed cost Levelized for life of

the Projects:

Rs.2.37/unit

Variable cost [Rs/Unit]

applicable to the relevant

year:

FY-15 : Rs.2.82 (Base year)

FY-16 : Rs.2.98

FY-17 : Rs.3.16

FY-18 : Rs.3.34

iv. Biomass air cooled condenser based plant:


Debt: Equity 70:30

RoE 16%



Depreciation 7% SLM



Capital Cost[CC] - Rs.Crs/MW 5.80

O& M for base year Rs. 23.20 L/MW

O & M annual escalation 5%

PLF/CUF 75%

Auxiliary 10.0%

Fuel Price

Rs/MT

2000 in base year

with 5% annual escalation

Sp. Fuel Consp.

Kg/unit

1.18

Tariff

Rs/Unit

5.15 in first year going upto

6.04 in 10th year

[Year wise tariff determined

for 10 years]

1. Solar tariff:

The Commission had revised the tariff for Grid Interactive Megawatt scale

Solar Power Plants vide order dated 30.07.2015. The abstract of the

parameters considered for determination of tariff:

Parameters Solar PV Solar Thermal

Debt: Equity 70:30 70:30

Interest on Term loan 12.50% 12.50%

RoE 16% 16%

Depreciation 5.83% for first 12

years and 1.54%

for next 13 years

5.83% for first 12

years and 1.54%

for next 13 years

Capital Cost [CC] - lakhs 600 1200

CUF 19% 23%

O & M 13 L/MW 17.72 L/MW

O & M escalation P.A. 5.72% 5.72%

IWC 13.25% 13.25%

17thAnnual Report

2016


Auxiliary 0.25% 8%

Discount factor 13.55% 13.55%

Degradation Factor 0.5% of net

generation after

4th year

NA

Tariff Rs/unit 6.51 10.85

The Commission had revised the tariff for Grid Interactive Solar Rooftop

Photovoltaic Power Plants vide order dated 2nd May, 2016. The abstract of

the parameters considered for determination of tariff:

Particulars

Capacity of Solar Rooftop and Small PV Plants in kW

1- 10 Above 10

and upto

50

Above 50

and upto

100

Above 100

and upto

500

Above 500

and upto

1000

Capital Cost/kW- Rs. 75000 70000 65000 60000 55000

Debt: Equity Ratio 70:30

Debt-Rs. /kW 52500 49000 45500 42000 38500

Equity- Rs. /kW 22500 21000 19500 18000 16500

Debt Repayment

Tenure in Yrs.

12

Interest charges on

Debt-%

12.00%

Capacity Utilisation

Factor (CUF)

19%

ROE-% 16%

Discount Factor -% 13.20%

O & M expenses 1% of the capital cost with annual escalation of 5.72%

Working Capital Receivables equivalent to one month’s revenue

Interest on Working

Capital

12.50%

Depreciation for first

12 yrs

5.83%

Depreciation for next

13 yrs

1.54%

17thAnnual Report

2016


The approved tariff for the control period ending 31st March, 2018 is as

follows:

Capacity of Solar Rooftop

and small PV power plants

Approved Tariff in

Rs/Unit

(Without Capital

Subsidy)

Approved Tariff in

Rs/Unit

(With Capital

Subsidy of 15%)

1 to 10kW 7.08 6.03

Above 10kW and upto 50kW 6.61 5.63

Above 50kW and upto 100kW. 6.14 5.23

Above 100kW and upto 500kW. 5.67 4.83

Above 500kW and upto 1MW. 5.20 4.43

Wheeling & banking Charges:

To encourage sale of Renewable Energy sources to utilise within the State for

captive as well as third party sale, the Commission had determined wheeling

charges at 5% and banking charges of 2% of the energy injected. The

Banking charges are applicable only to wind and Mini Hydel. For Solar,

wheeling & banking charges and cross subsidy charges are not charged for

the transaction within the State, as a promotion measure.

In case of Non-REC route, the banked energy remaining unutilized at the end

of the year is paid at 85% of latest generic tariff determined by the

Commission as applicable to the relevant category of RE power to the

Generating Company. In case of REC route projects, the banked energy

remaining unutilized at the end of the month is paid at Average Pooled

Power Purchase Cost (APPPC).

Cross Subsidy Surcharge:

As per Tariff Order 2016, the cross subsidy for industrial consumers at 66 kV it is

118 paise/unit and at HT level it is 86 paise/unit. For commercial consumers at

66 kV it is 253 paise/unit and at HT level it is 222 paise/unit.

17thAnnual Report

2016


Transmission Tariff for FY17:

The approved transmission tariff for FY17 as per the Commission’s Tariff Order

dated 30th March, 2016 is as follows:

Transmission Charges payable by ESCOMs for FY17

Particulars Transmission

Capacity

Allocation in

MW

Transmission

charges Rs.

Crores per

annum

Transmission

charges Rs.

Crores per Month

BESCOM 9728 1487.22 123.94

MESCOM 1615 246.90 20.58

CESC 2253 344.44 28.70

HESCOM 3999 611.37 50.95

GESCOM 2635 402.84 33.57

TOTAL (MW) 20230 3092.77

257.73

Transmission

Tariff

(Rs./MW/Month) 127400

Transmission Charges (Rs/MW) for Short-term Users

Transmission

Charges

(Rs/MW)

Amount in Rs/MW

More than 12

hrs & upto 24 hrs

in a day in one

block 1047.13

More than 6 hrs

& upto 12 hrs in

a day in one

block

523.56

Upto 6 hrs in a

day in one

block

261.78

17thAnnual Report

2016


Retail Supply Tariff for FY17:

The approved Retail Supply Tariff for Consumers in Karnataka as per

Commission’s Orders dated 30th March 2016 is as follows:

Tariff

Category Category Description

Particulars/Slab of

consumption (Units or

KWH)

Type of

charges BESCOM

Other

ESCOMs

and Hukeri

RECS

LT-1 BJ/KJ FC 30.00 30.00

EC ACS* ACS*

LT-2(a)(i)

Domestic AEH coming

under BBMP, Municipal

Corpn and all Urban Local

Bodies

For First KW FC 30.00 30.00

For every additional KW FC 40.00 40.00

0-30 EC 3.00 3.00

31-100 EC 4.40 4.40

101-200 EC 5.90 5.90

Above 200 EC 6.90 6.90

LT-2(a)(ii) Domestic AEH coming

under Village Panchayats

For First KW FC 20.00 20.00

For every additional KW FC 30.00 30.00

0-30 EC 2.90 2.90

31-100 EC 4.10 4.10

101-200 EC 5.60 5.60

Above 200 EC 6.40 6.40

LT-2(b)(i)

Pvt Educational Institutions

and Nursing Homes &

Private Hospitals coming

under BBMP, Municipal

Corpn and all Urban Local

Bodies

For each KW FC 45.00 45.00

Subject to minimum of FC 75.00 75.00

0-200 EC 6.25 6.25

Above 200 EC 7.45 7.45

LT-2(b)(ii)

Pvt Educational Institutions

and Nursing Homes &

Private Hospitals coming

under Village Panchayats


Subject to minimum of FC 60.00 60.00

0-200 EC 5.70 5.70

Above 200 EC 6.90 6.90

LT-3 (i)

Commercial Lighting and

heating coming under

BBMP, Municipal Corpn

and all Urban Local Bodies


0-50 EC 7.15 7.15

Above 50 EC 8.15 8.15

LT-3 (ii)

Commercial Lighting and

heating coming under

Village Panchayats


0-50 EC 6.65 6.65

Above 50 EC 7.65 7.65

LT-4 (a) IP Sets less than 10HP CDT* CDT*

LT-4 (b) IP Sets more than 10HP For each HP FC 40.00 40.00

EC 2.80 2.80

LT-4 (c) (i) Pvt Horticulture, Nurseries For each HP FC 30.00 30.00

17thAnnual Report

2016


&Coffee & Tea plantations

below 10HP EC 2.80 2.80

LT-4 (c) (ii)

Pvt Horticulture, Nurseries &

Coffee & Tea plantations

above 10HP

For each HP FC 40.00 40.00

EC 2.80 2.80

LT-5 (a)

Industrial heating and

Motive power coming

under BBMP and

Municipal Corporation

Per HP for 5HP and below FC 35.00 30.00

Per HP for 5HP to less than

40HP FC 35.00 35.00

Per HP for above 40HP to

less than 67HP FC 45.00 40.00

Per HP Above 67HP FC 110.00 100.00

0-500 EC 5.10 4.95

501-1000 EC 6.30 5.85

Above 1000 EC 6.30 6.15

LT-5 (b)

Industrial heating and

Motive power coming

under all areas other than

those covered under LT-

5(a)

Per HP for 5HP and below FC 30.00 30.00

Per HP for 5HP to less than

40HP FC 35.00 35.00

Per HP for above 40HP to

less than 67HP FC 40.00 40.00

Per HP Above 67HP FC 100.00 100.00

0-500 EC 4.85 4.85

501-1000 EC 5.70 5.70

Above 1000 EC 6.00 6.00

LT-6(a) Water Supply Per HP FC 45.00 45.00

Per Unit EC 3.90 3.90

LT-6 (b)

Street Lights Per HP FC 60.00 60.00

LED Lighting Per Unit EC 5.50 5.50


LT-7( a) Temporary/ Hoarding &

Advertising Boards

Less than 67 HP(EC subject

to weekly minimum of

Rs.170 per KW of the

sanctioned load)

EC 9.50 9.50

LT-7 (b)

Permanent supply to

Hoarding & Advertising

Boards

For each KW

FC 50.00 50.00


HT-1 HT Water supply Per KVA FC 190.00 190.00


HT-2(a)(i)

HT Industries coming under

BBMP and Municipal

Corporation

Per KVA FC 190.00 180.00

For first one lakh units EC 6.25 6.20

For balance units EC 6.75 6.60

BMRCL

Per KVA FC 190.00 -

Per Unit EC 5.70 -

Railway Traction & Effluent

Treatment Plants

Per KVA FC 190.00 190.00


HT-2(a)(ii) HT Industries other than

those covered under HT-

Per KVA FC 180.00 180.00


17thAnnual Report

2016


2(a) ( i ) For balance units EC 6.60

6.60

Railway Traction & Effluent

Treatment Plants

Per KVA FC 190.00 190.00


HT-2(b)( i )

HT commercial coming

under BBMP and Municipal

Corporation

Per KVA FC 210.00 200.00

For first two lakh units EC 8.05 7.85


HT-2(b)(ii)

HT Commercial other than

those covered under HT-

2(b)(i)

Per KVA FC 200.00 200.00

For first two lakh units EC 7.85 7.85


HT-2 (c) (i)

HT- Govt. Hospitals &

Hospital run by Charitable

Institutions & ESI Hospitals

and Universities,

Educational Institutions

belonging to Govt., Local

bodies, Aided Institutions

and Hostels of all

Educational Institutions.

Per KVA FC 180 180


For the balance unit EC 6.50 6.50

HT-2 (c)(ii)

HT-Hospitals and

Educational Institutions

other than those covered

under HT-( c) (i)

Per KVA FC 180 180


For the balance unit EC 7.50 7.50

HT-3(a)(i) LI Schemes under Govt.

EC subject to Annual

minimum of Rs.1120 per

HP/Annum

EC 2.00 2.00

HT-3(a)(ii) LI Schemes on

Urban/Express feeders

Per HP FC 40.00 40.00


HT-3(a)(iii)

LI Schemes other than

those covered under HT-3

(a)(ii)

Per HP FC 20.00 20.00


HT-3(b) HT Agriculture/Horticulture

EC subject to Annual

minimum of Rs.1120 per HP

of sanctioned

load/Annum

EC 4.00 4.00

HT-4(a) HT Residential –Applicable

to all areas

Per KVA FC 110.00 110.00


HT-5

Temporary- applicable to

67 HP and above of all

categories including

Hoarding & Advertising

Boards

Per KVA FC 220.00 220.00

Per Unit (Weekly minimum

is not applicable) EC 9.50 9.50

HT-5(a)

Temporary- applicable to

Bangalore International

Exhibition Centre

Per Unit EC 10.50 -

ESCOM

*Average Cost of Supply

(ACS) Rs/Unit

*Commission Determined

Tariff (CDT) Rs/Unit

17thAnnual Report

2016


BESCOM 5.96 2.86

MESCOM 6.01 4.73 FC- Fixed Charges

CESC 5.67 4.88 EC-Energy Charges

HESCOM 5.98 5.56

GESCOM 5.77 5.03

Hukeri

RECS 4.82 4.63

Time of day (ToD) Tariff for HT-2(a) & HT-2(b) categories with a Contract demand of 500 KVA and above was

on optional basis upto 31.08.2012 and compulsory from 01.09.2012 .The ToD tariff on optional basis would

continue as existing earlier for HT-1 category and also for LT-5, , HT-2(a) & HT-2 (b) categories with CD of less

than 500 KVA at following ToD tariff

Time of Day

Increase(+)/reduction (-)

in energy charges over

the normal tariff

applicable

22.00Hrs to 06.00Hrs (-)125 paise per unit

06.00Hrs to 18.00Hrs 0

18.00Hrs to 22.00Hrs (+)100 paise per unit

Mangalore SEZ

HT Industrial / Common Facilities Per KVA FC 180.00

Per Unit EC 6.50

HT Construction Per KVA FC 200.00

Per Unit EC 9.00

AEQUS SEZ

HT Industrial / Common Facilities Per KVA FC 180.00

Per Unit EC 6.55

HT Construction Per KVA FC 200.00

Per Unit EC 9.00

17thAnnual Report

2016


6. IMPORTANT EVENTS DURING THE YEAR

Multi Year Tariff Orders in respect of KPTCL, ESCOMs, Mangalore SEZ,

AEQUS SEZ and Hukeri RECS for FY17-19 have been issued.

Three Advisory Committee meetings were held during the year.

Four ESCOMs review meetings were conducted. Various issues for

improving quality of power supply and compliance of directives issued

by the Commission were discussed.

38 internal meetings were held to discuss and decide on various issues

pertaining to the sector.

60 cases for adjudication of disputes were finally heard and disposed of

during the year.

19 PPAs and 26 supplemental PPAs were approved.

Revision of Generic Tariff for megawatt scale solar PV and solar thermal

power plants.

Truing up of APPC for 2015-16 and notifying provisional APPC for 2016-17

for the purpose of Renewable Energy Certificate (REC) was undertaken.

Orders on four quarterly claims of Fuel Cost Adjustment Charges for all

ESCOMs was issued.

Activities of the Commission

in

FY16

17thAnnual Report

2016


10. ACTIVITIES OF THE COMMISSION IN FY 2015-16

(1) Following are the activities of the Commission during the year, in

pursuance of the functions of the Commission specified, under Section 86

of the Electricity Act, 2003.

Section of EA 2003 Functions specified Activities during the

year

86(1)(a) Determine tariff for

generation, supply

transmission and

wheeling of

electricity……..

Tariff Orders in respect

of KPTCL for transmission

charges, Distribution

licensees for retail

supply and wheeling

charges have been

issued.

Generic Tariff Order in

respect of solar power

plants have been

issued.

86(1)(b) Regulate electricity

purchase and

procurement process of

distribution licensee ….

1107 PPAs (including

supplemental PPAs)

have been approved

by the Commission.

86(1)(c) Facilitate intra state

transmission and

wheeling of electricity

Transmission and

Wheeling charges

determined in

respective Tariff Orders.

86(1)(d) Issue of licence KPTCL, ESCOMs and

Hukeri RECS are existing

licensees. MSEZ and

AEQUS SEZ are deemed

licensees.

86(1)(e) Promotion of co-

generation and

renewable sources of

energy

Renewable Purchase

Obligation has been

specified for all the

ESCOMs / captive and

open access

generators.

Renewable Energy

Certificate already

introduced.

17thAnnual Report

2016


Renewable Purchase

Obligation compliance

monitored.

86(1)(f) Adjudicate upon

disputes

The Commission has

disposed of 60 petitions

during the year.

86(1)(g) Levy of fee Fee levied as per the

provisions of the

Regulations made is

being collected.

86(1)(h) Specify State Grid Code The existing State Grid

Code is modified on the

lines of IEGC and the

new Grid Code have

been notified.

86(1)(i) Enforce standards The quality, continuity

and reliability of services

by the licensees are

being reviewed

regularly.

86(1)(j) Fixing trading margin No intra-state trader

exists in the State.

86(1)(k) Discharge such other

functions

Undertaken such

functions whenever,

required.

86(2) Advise the State

Government

Advisory on specific

issues have been

communicated to the

State Government

86(3) Ensure transparency Public hearings and

written comments /

suggestions invited from

stakeholders in all tariff

determination and

other proceedings.

86(4) Guided by National

Electricity Policy and

Plan and Tariff Policy.

The Commission has

taken note of the

provisions of NEP and

Tariff Policy in discharge

of its functions.

17thAnnual Report

2016


(2) Tariff Order of the KPTCL:

The Commission had issued the Tariff Order dated 30th March, 2016 in respect

of the KPTCL. The Annual Revenue Requirement (ARR) sought by the KPTCL

and approved by the Commission for FY17-19 are as follows.

Figures in Rs. Crores

Particulars FY17 FY18 FY19

Annual Revenue

Requirement sought by

KPTCL

3134.02 3487.86 3841.07

Annual Revenue

Requirement approved by

the Commission.

3092.77 3171.28 3472.60

The approved ARR for the FY17 also includes an amount of Rs.202.52 Crores

of gap in revenue for the FY15 as per the Annual Performance Review for the

FY15.

(3) Tariff Orders of the ESCOMs:

The Commission had issued the Tariff Orders dated 30th March, 2016 in

respect of all the Electricity Supply Companies (ESCOMs), AEQUS SEZ

Mangalore SEZ and Hukeri RECS. The Annual Revenue Requirement (ARR)

sought by the ESCOMs and approved by the Commission are as follows:

Rs.in Crores

ESCOM

FY17 FY18 FY19

As filed As

approved As filed

As

approved

As

filed

As

approved

BESCOM 17556 15765 18617 15714 19995 16989

MESCOM 3091 2774 3580 2963 3833 3180

CESC 3778 3382 4220 3749 4638 4150

HESCOM 7112 6018 8298 6406 9635 7076

GESCOM 4379 3979 5182 4488 5724 4856

Hukeri RECS 152 118 177 137 206 149

Mangalore

SEZ

55 55 60 60 75 75

AEQUS SEZ 10 10 13 13 17 18

(Above figures are rounded of to the nearest integer)

17thAnnual Report

2016


(4) Regulations issued by the Commission:

During the year the following important Regulations/Orders were issued by

the Commission:

i. Karnataka Electricity Regulatory Commission (Demand Side

Management) Regulations, 2015;

ii. Karnataka Electricity Regulatory Commission (Terms and Conditions

for Open Access) (Third amendment) Regulations, 2015;

iii. Karnataka Electricity Regulatory Commission (Procurement of Energy

from Renewable sources) (Third Amendment), Regulations, 2015;

iv. KERC (Karnataka Electricity Grid Code) and KERC (Karnataka

Electricity Distribution Code) Regulations, 2015.

v. KERC (Smart Grid) Regulations, 2015.

vi. Fourth amendment to the various clauses of Conditions of Supply of

Electricity of Distribution Licensees in the State of Karnataka (COS)

2016.

vii. KERC (Terms and Conditions for determination of generation tariff)

Regulations, 2014 for the control period 2014-2019.

i) Karnataka Electricity Regulatory Commission (Demand Side

Management) Regulations, 2015:

The above Regulations has been issued vide notification Y/04/10

dated 28.07.2015 and published in the gazette of Karnataka on 31st

July, 2015. These Regulations lay down guidelines to the distribution

licensees in the State for designing, developing and implementing

Demand Side Management Programmes. The Regulations broadly

specify the following:

a. DSM objectives: It includes mitigation of peak and energy shortages,

reduction of greenhouse gas emissions and conservation of scarce

conventional energy resources.

17thAnnual Report

2016


b. DSM targets: The targets would be specified by the Commission by issuing

separate order.

c. DSM cell, its roles and responsibilities: It includes creation of a DSM cell

to carryout functions such as load research and market research,

estimation of DSM potential, development of methodology for assessing

technical potential, development of base line data, capacity building for

employees, formulation of DSM plan and seeking approvals from the

commission for the same, implementation of DSM programmes and to

perform programme level evaluation measurement and verification, etc.

d. Mechanism for cost recovery of DSM expenses by distribution licensee: It

provides for cost recovery through annual revenue requirement

mechanism.

e. Monitoring and reporting of DSM programs: The distribution licensee has

to submit report on the progress of implementation of the DSM plan every

six months.

f. Evaluation, Measurement and verification of DSM programs: The

distribution licensee is made responsible for evaluation, measurement

and verification of the savings from the DSM programmes.

g. It includes provision for disallowance of expenditure for non-achievement

of DSM targets or for failure to implement DSM program according to

approved plan

ii) Karnataka Electricity Regulatory Commission (Terms and Conditions for

Open Access) (Third amendment) Regulations, 2015

The above Regulations has been issued vide notification Y/02/15/1143 dated

05.10.2015 and published in the gazette of Karnataka on 8th October, 2015.

The Regulations broadly specify the following:

a. Regulation 8 of the principal Regulations has been substituted, so as to

have a single nodal agency for both short term and long term open

access.

17thAnnual Report

2016


b. Regulation 9 of the principal Regulations has been substituted, so as to

fix the time lines for grant of open access and also for signing of

wheeling and banking agreement. In case of non-adherence to the

time lines specified, deemed grant of open access is provided, to

prevent undue delay in the process of granting open access. Further,

the effective date for commencement of operation of wheeling of

electricity by the applicant is specified as the date of receipt of

agreement for wheeling by the licensee, to avoid any delay in

operationalization of wheeling.

c. Amended Regulation 9 also specify that, the licensees are not liable to

pay any charges for the energy injected before the grant of open

access and for any energy injected from the date of grant of open

access till the date of submission of agreement for wheeling, the

applicant is entitled for payment of energy charges at average pooled

power purchase cost (APPC).

d. Further, to bring transparency in the process of grant of open access,

provision has been made for display of the status of open access

application on the website of the nodal agency (SLDC).

e. New clause is introduced to specify procedure for day ahead open

access transaction.

f. Regulation 11(xiii) of the principal Regulations is modified, providing for

separate payment of transaction charges and meter reading charges

to the nodal agency and the distribution licensee respectively.

iii) Karnataka Electricity Regulatory Commission (Procurement of Energy from

Renewable sources) (Third Amendment), Regulations, 2015

The above Regulations has been issued vide notification Y/01/15/1368 dated

16.11.2015 and published in the gazette of Karnataka on 19th November,

2015, The Regulations broadly specify the following:

17thAnnual Report

2016


a. The definition of contract demand has been included for the purpose of

clarity.

b. Regulation 3(ii) of the principal Regulations is amended, to include

under RPO, consumers having captive co-generation plants.

c. Regulation 3(iii) of the principal Regulations is amended, to include

under RPO, power procured from co-generation plants and also from

power exchanges, irrespective of whether they are consumers of the

distribution licensees are not.

d. Regulation 4(i) is modified specifying the following year wise non-solar

and solar RPO for the ESCOMs:

Non-Solar RPO

Year wise

DISTRIBUTION

LICENSEE

2015-

16

2016-

17

2017-

18

2018-

19

2019-20

and

onwards

BESCOM 10% 11% 12% 13% 14%

MESCOM 10% 11% 12% 13% 14%

CESC 10% 11% 12% 13% 14%

HESCOM 7% 7.5% 8.5% 9.5% 10.50%

GESCOM 5.0% 5.50% 6.0% 7.0% 8%

HRECS 7% 7.5% 8.5% 9.5% 10.50%

DEEMED

LICENSEE(s)

RPO target shall be same as that of the

ESCOM where the SEZ is situated.

Solar RPO

Year wise

DISTRIBUTION

LICENSEE

2015-

16

2016-

17

2017-

18

2018-

19

2019-20

and

onwards

BESCOM 0.25% 0.75% 1.25% 1.75% 2.50%

MESCOM 0.25% 0.75% 1.25% 1.75% 2.50%

CESC 0.25% 0.75% 1.25% 1.75% 2.50%

HESCOM 0.25% 0.75% 1.25% 1.75% 2.50%

GESCOM 0.25% 0.75% 1.25% 1.75% 2.50%

HRECS 0.25% 0.75% 1.25% 1.75% 2.50%

DEEMED

LICENSEE(s) 0% 0.75% 1.25% 1.75% 2.50%

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2016


e. Regulation 4(ii) is modified specifying the following year wise non-solar

and solar RPO for the grid connected captive consumers:

Source

2015-16 2016-17 2017-18 2018-19

2019-20

and

onwards

NON-SOLAR 5.0% 5.5% 6% 7.0% 8%

SOLAR 0% 0.75% 1.25% 1.75% 2.50%

f. Regulation 4(iii) is modified specifying the following non-solar and solar

RPO for the open access consumers:

Source

2015-16 2016-17 2017-18 2018-19 2019-20

onwards

NON-SOLAR 5.0% 5.5% 6% 7.0% 8%

SOLAR 0% 0.75% 1.25% 1.75% 2.50%

g. Regulation 8(1) is modified to provide for imposition of penalty on the

obligated entities who do not comply with the RPO specified, by

requiring them to purchase REC to the extent of 10% of the unmet RPO.

iv) Karnataka Electricity Grid Code (KEGC) and Karnataka Electricity

Distribution Code (KEDC):

The Commission had issued a revised draft Karnataka Electricity Grid Code

(KEGC) and Karnataka Electricity Distribution Code (KEDC) which lay down

the rules, guidelines and standards to be followed by various persons and

participants in the Intra-State Transmission and Distribution system to plan,

develop, maintain and operate the power system, in the most secure,

reliable, economic and efficient manner, so as to meet the requirements of

Integrated Operation with the Inter-State Transmission system of the Southern

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2016


Regional Grid/ National Grid as per the provisions of the Indian Electricity Grid

Code while facilitating healthy competition in the generation.

Various stakeholders have furnished their comments/views/suggestions for

the draft KEGC and KEDC and a public hearing was conducted on

05-11-2015. The Commission after considering the comments / views /

suggestions made by the stakeholders on the draft KEGC and KEDC has

issued the final Karnataka Electricity Grid Code (KEGC) and Karnataka

Electricity Distribution Code (KEDC). The same had been published in the

official Gazette of Government of Karnataka on 3rd February, 2016.

The Transmission licensee and all Distribution licensees are informed to

comply with the provisions made in the KEGC and KEDC.

v) Karnataka Electricity Regulatory Commission (Smart Grid) Regulations,

2015:

The objective of these Regulations is to bring about economy, efficiency

improvement in generation and licensee operations, manage the

transmission and distribution networks effectively, enhance network security,

integrate renewable and clean energy into the grid at both large and

distributed generation levels, enhance network visibility, promote optimal

asset utilization, enhance access, improve customer service levels and allow

for participation of prosumers in operations of Licensees through greater

technology adoption across the value chain in the electricity sector and

particularly in the transmission and distribution segments.

Government of India has notified a Smart Grid Vision and Roadmap that

clearly articulates the goals and timelines for deployment with respect to the

above objectives. These Regulations take into consonance the

aforementioned roadmap(s), and aim to propagate the expansion of Smart

Grid and allied technologies in accordance with the roadmap(s).

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The Regulations take into account that Smart Grid is in early stages of

development and deployment in the Country and also across the World. It is

imperative that flexibility is available to experiment with new technologies

and applications consistent with the above purposes, while duly protecting

the legitimate interests of consumers and prosumers and addressing their

concerns. Accordingly, the Regulations lay out the principles that the

Commission will adopt for propagating Smart Grid.

The objectives also include enhancing network visibility and access,

promoting optimal asset utilization, improving consumer service levels

thereby allowing for participation in operations of transmission licensees,

distribution licensees through greater technology adoption across the value

chain in the electricity sector and particularly in the transmission and

distribution segments.

The Commission had issued a draft KERC (Smart Grid) Regulations, 2015

inviting comments from stakeholders. The Commission also held a Public

hearing in the matter on 21-01-2016. After considering the view/

comments/suggestions of the Stakeholders in the matter, the Commission, in

exercise of the powers conferred by the clause (zp) of sub-section (2) of

Section 181 of the Electricity Act, 2003 (Central Act 36 of 2003,) issued the

KERC (Smart Grid) Regulations, 2015 which has been published in the official

Gazette of Government of Karnataka, on 3rd February, 2016.

The Transmission licensee and all Distribution licensees have been informed to

comply with the provisions made in the Regulations.

vi) Fourth Amendment to the various Clauses of Conditions of Supply of

Electricity of Distribution Licensees in the State of Karnataka (CoS),

2006:

The Fourth amendment Conditions of Supply of Electricity of Distribution

Licensees in the State of Karnataka (CoS) were notified in the Karnataka

Gazette on 28th January, 2016.

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The BESCOM had filed a petition vide OP No. 30/2014 before the Commission

seeking amendments to relevant clauses of the CoS for inclusion of

electrostatic meters on par with the electronic tri-vector meters in the CoS.

Also, it had requested for further amendments in the CoS to provide for fixing

of LT sub-meters for domestic/ commercial use in the HT/EHT installations.

After eliciting the views/comments and suggestions from stakeholders, the

Commission had notified the fourth amendment.

(5) Draft Regulations issued during FY16:

The Commission has issued the following draft Regulations during FY16:

i) Draft KERC (Forecasting, Scheduling, Deviation settlement and related

matters for Wind and Solar Generation Sources) Regulations, 2015:

The percentage share of wind energy in Karnataka is about 15.94% of the

total installed capacity of 15052 MW including the State’s share from Central

Generating Stations, as on 31.03.2015. In addition to this, Solar power

generation in large capacities are also proposed to be added in the near

future. The Solar and Wind power being infirm sources of energy, there is a

need for the Grid operator to have sufficient information in advance on

quantum of energy expected to be injected into the grid. Hence, the

Commission has notified the draft of the KERC (Forecasting, Scheduling,

Deviation settlement and related matters for Wind and Solar Generation

Sources) Regulations, 2015 on 16th November, 2015.

ii) Draft KERC (Terms and Conditions for determination of Transmission tariff)

(Second Amendment) Regulations, 2015:

The Commission had notified the draft KERC (Terms and Conditions for

determination of Transmission tariff) (Second Amendment) Regulations, 2015

on 26th November, 2015. The amendments to capital investment, treatment

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of losses, computation of interest on loan, depreciation, Return on Equity,

O&M expenses etc., were proposed. The Commission after seeking the

views/comments/suggestions of the stakeholders, proposes to hold a public

hearing in the matter before notifying the final Regulations.

iii) Draft KERC (Terms and Conditions for determination of tariff for distribution

and retail sale of electricity) (Second Amendment) Regulations, 2015:

The Commission had notified the draft KERC (Terms and Conditions for

determination of tariff for distribution and retail sale of electricity) (Second

Amendment) Regulations, 2015 on 26th November, 2015. The amendments to

capital investment, computation of interest on loan, depreciation, Return on

Equity, O&M expenses etc. were proposed. The Commission, after seeking

the views/comments/suggestions of the stakeholders, proposes to hold a

public hearing in the matter before notifying the final Regulations.

(6) Important Orders issued during the year FY16:

i) Order on ‘Determination of Tariff for Bagasse based Co-generation plants

during off season’ and ‘Draft guidelines for monitoring use of coal for

power generation in co-generation projects during off-season for the

purpose of determination of Tariff for Bagasse based Co-Generation

Plants during Off-season using Coal as fuel’.

The Commission, having considered all the aspects relating to the issue,

concluded that the adverse impact on the environment by operation of

bagasse based cogeneration plants using coal as fuel outweighs the benefit

from the power generation during off-season. The Commission, therefore,

decided not to make any change in the existing norms for the operation of

bagasse based cogeneration plants and issued the following order on 27th

November, 2015:

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“The existing norms for Bagasse based Co-generation plants permitting

them to use 15% of coal and the tariff as determined by the Commission

from time to time such plants, treating them as renewable energy source

shall continue. Any Bagasse based Co-generation plants using coal

beyond 15% after complying with the prevailing environmental laws and

regulations, however, may file appropriate application before the

Commission for determination of tariff as per law.”

ii) Imposition of Renewable Purchase Obligation on Captive

Co-generation plants using fuel other than renewable source for

power generation

The Commission issued order in the above matter on 4th August, 2015,

deciding as follows:

“In the light of the order dated 13.05.2015 of the Hon’ble Supreme Court in

the Civil Appeal No. 4417/2015, the Commission hereby decides to recall

with immediate effect, its decision taken in the Commission’s meeting held

on 08.05.2013, not to impose Renewable Purchase Obligation [RPO] on

captive consumers or open access consumers consuming electricity

obtained from cogeneration plants using sources other than renewable

sources for generation of electricity.”

iii) Notification of Pooled Cost of Purchase for the purpose of Renewable

Energy Certificate (REC):

The Commission has notified the pooled cost as per actuals for the FY16 at

Rs.3.10 /unit vide its notification-dated 31.03.2016, which was published in the

gazette of Karnataka on 22.04.2016. Further, in the said Notification, the

Commission has retained the pooled cost at Rs.3.10 per unit for the 2016-17

also, as an interim measure.

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iv) Fuel Cost Adjustment Charges (FAC):

The Commission has issued orders on Fuel Cost Adjustment Charges for each

quarter of the FY16, as detailed below:

(a) FAC Order dated 25th June 2015 for the period January to March, 2015 to be

billed in July to September, 2015:

In view of the overall decrease in fuel cost in the fourth quarter of the FY15

and overall increase in power purchase cost, the Commission decided to

allow the ESCOMs except MESCOM and GESCOM to adjust the savings and

FAC against the overall increase in power purchase cost. Further, the

recoverable FAC of Rs.14.81 Crores and Rs.1.64 Crores in respect of the

MSECOM and the GESCOM respectively was ordered to be factored during

APR for the FY15.

(b) FAC Order dated 21st September, 2015 for the period April to June, 2015 to

be billed in October to December, 2015:

In accordance with the provisions of the KERC (Fuel Cost Adjustment

Charges Regulations, 2013, the Commission considering the increase in fuel

cost adjustment charges along with the overall increase in power purchase

cost during the first quarter of the FY16, decided to allow the ESCOMs to

collect the following fuel cost adjustment charges in paise per unit of sales,

during the billing quarter October – December, 2015:

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ESCOM FAC in

Paise

per unit

BESCOM 10

MESCOM 11

CESC 9

HESCOM (including HRECS) 9

GESCOM 13

(c) FAC Order dated 15th December, 2015 for the period July to September,

2015 to be billed in January to March, 2016:

The Commission, having recognized the increase in fuel cost adjustment

charges and also the overall increase in power purchase cost during July to

September, 2015, decided to allow all the ESCOMs to collect the following

fuel adjustment charges per unit of sales during the billing quarter January –

March, 2016:

ESCOM FAC in Paise per unit

BESCOM 4

MESCOM 3

CESC 4

HESCOM

(including HRECS)

5

GESCOM 5

(d) FAC Order dated 21st March, 2015 for the period October to December,

2015 to be billed in April to June, 2016:

The Commission, having considered the increase in fuel cost adjustment

charges and also the overall increase in power purchase cost during the third

quarter of FY16, decided to allow all the ESCOMs to collect the following fuel

adjustment charges per unit of sales during the billing quarter April – June,

2016:

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ESCOM FAC in Paise per unit

BESCOM 1

MESCOM 4

CESC 2

HESCOM (including HRECS)

3

GESCOM 4

(7) Renewable Energy (RE) PPAs approved upto March, 2016 by the

KERC:

The cumulative status of ESCOM-wise gist of PPAs approved by the

Commission is as follows:

Table- NCE PPAs approved by KERC (cumulative up to March 2016)

Total Terminated PPAs BESCOM

MESC

OM CESC HESCOM GESCOM

SL.

No Type

No. of

PPAs

Capacity

in MW

No. of

PPAs

Capac

ity in

MW

No. of

PPAs

Capacity

in MW

No. of

PPAs

Capa

city in

MW

No.

of

PPAs

Capac

ity in

MW

No.

of

PPAs

Cap

acity

in

MW

No.

of

PPAs

Capacity

in MW

1 Wind 589 2173.75 1 7.59 293 1215.04 42 149.35 50 118.25

162 607.9 43 90.85

2 Mini Hydel 79 637.53 2 4.5 14 161.45 25 217.28 19 117.7

5 31.7 18 113.9

3 Bio-mass 17 98.6 0 0 8 49 1 4.5 3 17.6

0 0 5 27.5

4 Co-gen 13 183.9 3 43.22 1 24 0 0 3 47.22

10 128.9 2 27

5

Solar

PV/Therm

al 1097 1859.51 0 0 721 1091.69 24 83.71

51 141.57

136

282.3

7 165 260.17

6 Captive 1 10 1 10

7

waste to

Energy 0 0 0 0 0 0 0 0

0 0 0 0

Total 1796 4963.29 6 55.31 1038 2551.18 92 454.84 126 442.34 313

1050

.82 233 519.42

NCE PPAs approved during the FY16

The ESCOM wise summary of PPAs approved by the Commission during the

FY16 is as follows:

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Table- NCE PPAs approved by the KERC during the FY16

Type

BESCOM MESCOM CESC HESCOM GESCOM Total

No of PPAS

Capacity No of PPAS

Capacity No of PPAS

Capacity No of

PPAS Capacity

No of

PPAS Capacity

No of PPAS

Capacity

Wind 2 4.2 2 3.5 4 7.7

Solar 711 1017.69 19 56.71 46 108.57 132 252.37 162 234.17 1070 1669.51

Captive 1 10

1 10

Total 712 1027.69 19 56.71 46 108.57 134 256.57 164 237.67 1075 1687.21

Table- NCE Supplemental PPAs approved by KERC during FY16 Capacity in MW

Type

BESCOM MESCOM CESC HESCOM GESCOM Total

No of PPAS

Capacity No of

PPAS Capacity

No of PPAS

Capacity No of PPAS

Capacity No of PPAS

Capacity No of PPAS

Capacity

Wind 10 100.1

4 9 6 80 2 3.75 22 192.85

Mini Hydel

0 0

Solar 1 10 1 10 5 33

1 10 8 63

Bio Mass 1 9

1 9

Co-Gen

1 9

1 9

Total 12 119.1 1 10 9 42 7 89 3 13.75 32 273.85

(8) The new directive issued by the Commission in its tariff orders for the

ESCOMs dated 30th March, 2016 is as follows:

Directive on Energy Conservation:

In view of the increase in cost of electricity and the constraints in capacity

additions to generate additional power to meet the increase in demand, the

Commission decided that it is imperative for all the consumers to use energy

efficient equipment and adopt energy conservation measures, in their daily

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activities to conserve electricity. Therefore, the Commission has directed the

ESCOMs to service all the new installations only after ensuring that the BEE

***** (Bureau of Energy Efficiency five star rating) rated Air Conditioners, Fans,

Refrigerators, etc., are being installed in the applicant consumers’ premises.

Similarly, all new streetlight/high mast installations including extensions made

to the existing streetlight circuits needs to be serviced only with LED

lamps/energy efficient lamps like induction lamps.

Further, the Commission has directed the ESCOMs to take up programmes to

educate all the existing domestic, commercial and industrial consumers,

through media and distribution of pamphlets along with monthly bills,

regarding the benefits of using five star rated equipment certified by the

Bureau of Energy Efficiency in reduction of their monthly electricity bills and

conservation of precious energy.

(9) Discussion Paper issued:

The following discussion paper was issued during the year:

Determination of tariff for Grid-Interactive Rooftop and Small kilowatt scale

solar photovoltaic plants in Karnataka:

The Commission had issued a discussion paper in the matter for

determination of tariff for Grid-Interactive Rooftop and Small kilowatt scale

solar photovoltaic plants in Karnataka. The Commission has received

comments from the stakeholders and the public hearing in the matter has

been fixed during April, 2016. The Commission would be taking further

appropriate action in the matter.

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(10) Studies conducted by the Commission:

(i) Concept paper on power generation from Municipal Solid Waste:

The Commission had engaged the services of The Energy and Resources

Institute (TERI), Bangalore for preparing a concept paper on power

generation from Municipal Solid Waste, the study included the review of the

present status of MSW based projects in the Country, exploring available

technology options and handling of MSW in city municipal corporations in

the State. TERI completed its studies and furnished the final report to the

Commission wherein it has suggested efficient utilization of MSW, tariff for

power generation from MSW and has also recommended treating MSW

power generation as captive power units for the Municipal Corporations.

(ii) Preparation of Guidelines for Estimation of Voltage wise Cost of supply.

The Commission in compliance to the directions issued by the Hon’ble

Appellate Tribunal for Electricity, in Appeal No. 42 of 2014 dated 8th October,

2014 had initiated a study through a Consultant, M/s TERI to suggest a

methodology to estimate Voltage wise Cost of Supply to arrive at the Cross

subsidy in respect of sales to different categories of consumers, broadly

classified under LT, HT and EHT consumers availing power supply at 11kV,

33kV, 66kV, 110kV and LT voltage levels by the distribution utilities. The

Voltage wise cost of supply model developed by the Consultant is in line with

the methodology suggested by the Hon’ble ATE for assessment of loss levels

at different voltage levels on energy inflow basis, apportionment of power

purchase cost on energy input basis and the other costs in proportion to the

sale of energy to different voltage levels.

The above report has been circulated to all ESCOMs for implementation.

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(iii) Prudence check of Capital expenditure of KPTCL and ESCOMs.

The Commission, with a view to verify the prudence of capital investment

made by Transmission and Distribution licensees has been conducting

prudence check of categorized/capitalized works and on procurement

every year. The prudence check is carried out by engaging the services of

the professional consultants, based on the common guidelines brought out

by the Commission.

During FY16, while determining the tariff for Transmission and Distribution

licensees for the fourth control period of MYT regime, the Commission

decided to adopt a transparent method of inviting bids through

E-procurement portal for conducting prudence check of categorized and

procurement works of the FY15 pertaining to Transmission and Distribution

licensees. The tender was invited and successful bidders/consultants were

selected and the work of Prudence check of capital investment of

Transmission and Distribution licensees were awarded.

Based on the findings of the prudence check of capital expenditure

pertaining to categorized/capitalized works, and procurement of the FY15,

the Commission has disallowed interest and depreciation charges on the

works, which are found to be not meeting the norms of Prudence in respect

of HESCOM. In case of the KPTCL, the other remaining ESCOMs and HRECS,

the categorized/capitalized works and procurement were found to be

meeting the norms of prudence.

(11) Mitigating Transmission constraints in the State:

The ESCOMs had identified transmission constraints causing difficulties in

power flow resulting in interruption of power supply, especially in BESCOM’s

Bengaluru metropolitan area. In this regard, the Commission had conducted

meetings with the KPTCL and the ESCOMs to review transmission constraints

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and directed the KPTCL to initiate action for removal of such constraints.

Further, the Commission had directed the KPTCL to discuss the issues of

transmission constraints with the Commission’s Advisory Committee members

and chalk out a program for mitigating the constraints.

Accordingly, the KPTCL has submitted a report containing the works

envisaged for mitigating the transmission constraints around Bengaluru city.

The KPTCL has stated that, Bangalore Transmission Plan was approved in 91st

Board of Directors meeting dated 25-11-2014 with an estimated cost of

Rs.1720 Crores and the total works proposed are 26 numbers.

(12) Review of performance of KPTCL and ESCOMs:

The Commission is conducting review meetings on quarterly basis, to review

the performance of the KPTCL and the ESCOMs. In case of Transmission utility

(KPTCL), some of the key parameters that are monitored are as follows:

i. Progress of construction of substations, transmission Lines and

augmentation of substations and line capacity;

ii. Transmission availability on monthly basis;

iii. Maintenance of Capacitor Banks installed in substations;

iv. Failure and repairs to Power transformers, are reviewed;

v. Mitigation of transmission constraints;

In case of the ESCOMs, the following important parameters pertaining to the

distribution business are reviewed:

i. Quality of supply in terms of interruptions, interruption duration;

ii. Metering of Distribution transformers;

iii. Failure of distribution transformers;

iv. Energy audit of Divisions, towns and Cities and 11kV feeder losses;

v. DCB analysis, billing and collection efficiency;

vi. Providing of infrastructure to regularized UNIP Sets;

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vii. Status of pending application for power supply;

viii. Accidents- fatal and non-fatal;

ix. Progress of implementation of NJY Scheme;

x. Progress of implementation of DSM in Agriculture;

The Commission has issued directions to the KPTCL and the ESCOMs to

improve their system reliability, reduce interruptions and to improve quality of

power supply. The Commission has directed the ESCOMs to Monitor the

interruptions and identify the feeders having more than 60 interruptions per

month and feeders having more than 30 hours of interruption per month and

take suitable action to reduce the interruption and its durations. The

Managing directors have been directed to closely monitor the interruptions

above the target levels and take corrective actions thereon.

Similarly, the Commission is monitoring the number of hazardous installations

existing in the ESCOMs and the action taken to reduce accidents. The

Commission had also noted the high failure rate of transformers in some of

the ESCOMs, resulting in huge interruptions and inconvenience to the

consumers and hence directed the ESCOMs to take appropriate action to

reduce the failure rate.

In the matter of metering of distribution transformers, energy audit and

improving collection efficiency, the Commission had issued suitable directions

to the ESCOMs to improve their existing status.

(13) Meetings of the Commission:

The Commission had held 38 meetings to discuss various issues on the power

sector during the year. The following are some of the important subjects

discussed in the Commission’s meetings.

1. Approval of the APR for the FY15 and ARR for the FY17-19 of the KPTCL, all

the ESCOMs, the SEZs and the Hukeri RECS.

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2. Revision of tariff of the KPTCL, all the ESCOMs, the SEZs and the Hukeri

RECS for the FY17.

3. Revision of generic tariff for solar PV and thermal power plants.

4. Review of power position in the State.

5. Approval of medium/short-term power procurement proposals and

power purchase agreements.

6. Approval of deviations in bidding documents proposed by the PCKL and

related issues.

7. Issue of New Regulations on DSM, Grid Code, Terms & Conditions on

Generation Tariff, Smart Grid.

8. Issue of Amendments to existing Regulations.

9. Initiation and review of studies on various matters like energy generation

from municipal solid waste, voltage wise cost of supply and developing

financial management framework and capex for the ESCOMs.

10. Monitoring and Review of compliance of Renewable Purchase

Obligation by the ESCOMs and other obligated entities.

11. Approval of Fuel Cost Adjustment Charges (FAC) for each quarter of the

year.

12. Prudence check of capital expenditure of the KPTCL, the ESCOMs and

the HRECS.

13. Nomination of Members to the Advisory Committee and District level

Consumer Grievance Redressal Forums.

14. Other administrative matters of the Commission.

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Advisory Committee

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11. ADVISORY COMMITTEE OF THE COMMISSION

11.1 Provisions under Electricity Act 2003:

In pursuance of the provisions contained in Section 34 of the Karnataka

Electricity Reforms Act, 1999 and Section 87 of the Electricity Act, 2003, the

Commission has established a State Level Advisory Committee to advise the

Commission on:

(i) major questions of policy;

(ii) matters relating to quality, continuity and extent of services provided by

the Licensees;

(iii) compliance by the Licensees with the conditions and requirement of

their licence;

(iv) protection of consumers’ interest; and

(v) electricity supply and overall standards of performance by utilities.

A List of the present Members of the Advisory Committee is placed in

Annex- 2.

The Commission has included the Chief Engineer, SLDC, KPTCL Bengaluru as

an invitee in the committee.

11.2 Brief account of the important issues discussed in the meetings:

During the year, three meetings of the Advisory Committee were held.

(1) In the 45th meeting held on 7th July, 2015 the Committee reviewed the

power position in the State. The Committee also reviewed the progress

and benefits of the Niranthara Jyothi Yojana (NJY) taken up by the

ESCOMs. The Committee discussed the advantages of the smart grid

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and decided to adopt it in the ESCOMs based on the pilot scheme

taken up in the CESC.

(2) In its 46th meeting held on 29th October, 2015, the Committee discussed

the possibility of establishing pumped storage generating plants in the

State to mitigate the problems posed due to injection of infirm power

from renewable energy sources like wind and solar. The Committee

deliberated on the status of implementation of NJY scheme in the

BESCOM and the results of wire to water efficiency in Byadagi sub-

division of the HESCOM.

(3) In its 47th meeting held on 10th March, 2016 the Committee discussed the

ARR / Tariff proposals of the KPTCL, the ESCOMs, the HRECS and the SEZs.

The Committee suggested reduction of transmission and distribution

losses.

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Commission’s Court Orders

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2016


12. COMMISSION’S COURT PROCEEDINGS:

The Commission generally holds court proceedings for adjudication of

disputes of licensees on Thursday of every week besides conducting public

hearing from time to time on various issues / petitions to be decided by the

Commission.

The details of petitions for resolution of disputes and complaints filed before

the Commission during the year and the status of their disposal as on

31.03.2016 is indicated below:

Sl

No.

Details of cases Total

1 No. of cases pending as on 1.4.2015 45

2 No. of cases filed during the year 78

3 No. of cases disposed during the year 60

4 Cases pending at the end of the year 63

The Details of Petitions, Complaints, Review Petitions and other cases

disposed of during the period from 1st April, 2015 to 31st March, 2016 are as

follows:

Sl.

No.

Case No. Date of

filing

Parties Subject Date of

Disposal

1 Complaint

1/15

3.2.15 Vidyut Grahakara Hitarakshana

Vedike and another vs BESCOM

& others

Occupancy certificate for

permanent electricity supply

9.4.15

2 Complaint

12/13

19.8.13 S Govindappa vs BESCOM Defective Implementation of

Niranthara Jyothi Scheme

14.5.15

3 OP 28/10 06.07.10 Konark Power Project Ltd. V/s

BESCOM

Regarding amendment to PPA 16.9.10/

26.5.15

4 Complaint

2/13

18.3.13 Sri Indra Power Energies Ltd vs

GESCOM & others

Non-compliance of order in OP

1/12

18.6.15

5 Complaint

6/13

9.5.13 Davanagere Sugar Company

Ltd vs SLDC

Contravention of the order in OP

4/12

18.6.15

6 OP 8/15 16.2.15 Sri Sai Deepthi Power Pvt Ltd vs

KPTCL & others

Redetermination of tariff 16.7.15/

10.9.15

7 OP 9/15 20.2.15 VRL Logistics Ltd vs HESCOM Interest on delayed payments 16.7.15

8 OP 14/15 5.5.15 Dishaa Power Corporation Ltd vs

BESCOM & others

Termination of PPA 23.7.15

9 OP 5/15 21.1.15 BESCOM vs nil Modification of standard format

of PPAs for NCE projects

22.7.15

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10 OP 13/13 18.4.13 Gokak Sugars Ltd vs HESCOM Fixation of tariff as per order

dated 29.3.12

30.7.15

11 Y/04/12 Against GESCOM RPO compliance 4.8.15

12 OP 10/14 11.4.14 Athani Sugars Ltd vs HESCOM &

others

Payment for the energy wheeled 6.8.15

13 RP 4/14 6.8.14 KPTCL & others vs Ugar Sugar

Works Ltd & another

Review of order in OP 12/12 6.8.15

14 RP 8/14 KPTCL & others vs NSL Sugars Ltd Review of order dated 29.5.2014

in OP No. 1/13

27.8.15

15 RP 3/14 17.7.14 Haveri Bio energy Pvt Ltd vs State

of Karnataka & others

Review of order in OP No. 18/13

dated 10.7.14

24.9.15

16 OP 28/15 21.9.15 BESCOM vs nil Billing on KVAH basis instead of

KWhr basis

15.10.15

17 RP 3/15 20.8.15 Ranka N Ranka infrastructure Pvt

Ltd vs BESCOM & others

Review of order dated 31.7.14 on

amendment to PPA

15.10.15

18 Complaint

6/14

12.12.14 Sai Sudhir Energy (Chitradurga) P

Ltd vs CESC

Disobedience of the order dated

14.11.2014 in OP 24/14

19.11.15

19 OP 26/14 18.7.14 Devar Power Ltd vs KPTCL &

others

Revision of Tariff and

amendment of PPA

19.11.15

20 OP 17/15 28.5.15 BESCOM vs nil Modification of formula of FAC 19.11.15

21 OP 7/15 16.2.15 Bonal Hydro Electric Company

Pvt Ltd vs KPTCL & others

Redetermination of tariff 19.11.15

22 OP 15/15 6.5.15 Star Metallics & Power Pvt Ltd vs

GESCOM

Captive status 19.11.15

23 OP 32/14 26.11.14 Lalpur Wind Energy P Ltd vs

KPTCL & others

Credit of banked energy 26.11.15

24 RP 6/13 2.8.13 BESCOM vs nil Review of the tariff order dated

6.5.13 reg: O & M expenses, RoE,

Loan, etc

10.12.15

25 OP 6/15 11.2.15 R B Seth Shreeram Narsingdas vs

KPTCL & others


26 Y/04/12 Against BOSCH Ltd & SLDC RPO compliance 10.12.15

27 OP 29/15 28.9.15 BESCOM vs nil DELP scheme 15.12.15

28 OP 30/15 30.9.15 CESC vs nil DELP scheme 15.12.15

29 OP 31/15 1.10.15 GESCOM vs nil DELP scheme 15.12.15

30 OP 32/15 1.10.15 HESCOM vs nil DELP scheme 15.12.15

31 OP 35/15 9.10.15 MESCOM vs nil DELP scheme 15.12.15

32 Complaint

4/14

30.9.14 NSL Sugars Ltd vs KPTCL & others Non-compliance of order dated

29.5.14 in OP 1/13

7.1.16

33 OP 25/15 9.9.15 D Subrahmanya Bhat vs

Secretary, KERC

Furnishing free copy of tariff

order of MESCOM

7.1.16

34 Complaint

13/13

6.12.13 Cauvery Hydro Energy Ltd vs

KPTCL & others

Non-compliance of order in OP

47/10

7.1.16

35 RP 5/13 2.8.13 KPTCL vs nil Review of the tariff order dated

6.5.13 reg: O & M expenses

7.1.16

36 RP 5/14 8.8.14 BESCOM vs nil Review of tariff order dated

12.5.14

7.1.16

37 OP11/15 8.4.15 Narayanpur Power Company Pvt

Ltd vs GESCOM

Payment 7.1.16

38 OP 43/15 10.12.15 Indian Machine Tools

Manufacturers’ Association &

another vs BESCOM

Fixing separate tariff and tariff

category

21.1.16

39 OP 11/14 16.4.14 Shahi Exports Pvt Ltd vs KPTCL &

others

Construction of EHT line 28.1.16

40 RP 9/14 12.11.14 CLP Wind Farms (I) Pvt Ltd vs

BESCOM

Review of order dated 14.8.14

in OP No. 21/13

4.2.16

41 OP 14/14 6.5.14 Graphite India Ltd vs MESCOM &

others

Restoration of Double circuit 11

kV line

11.2.16

17thAnnual Report

2016


42 OP 33/14 16.12.14 Ravikiran Power Projects Pvt Ltd

vs GESCOM & others

Wheeling and banking 11.2.16

43 RP 6/14 8.8.14 KPTCL vs nil Review of tariff order dated

12.5.14

11.2.16

44 OP 37/14 22.12.14 Trishul Power P Ltd vs KPTCL &

others

Determination of tariff 18.2.16

45 Complaint

1/16

29.1.16 Soham Phalguni Renewable

Energy Pvt Ltd vs KPTCL & others

Non compliance of order in OP

No. 48/12

18.2.16

46 OP 16/14 22.5.14 KPCL Vs BESCOM & others Tariff for RTPS Units 1-7 25.2.16

47 OP 17/14 22.5.14 KPCL Vs BESCOM & others Tariff for BTPS Unit 1 25.2.16

48 OP 19/14 4.6.14 KPCL vs BESCOM & others Tariff for hydel projects 25.2.16

49 OP 1/15 13.1.15 Renew Wind Energy (AP) Pvt Ltd

vs SLDC & others

Payment for energy delivered 10.3.16

50 OP 10/15 31.3.15 Shilpa Medicare Ltd vs KPTCL &

others


51 OP 21/15 18.8.15 Karnataka State Electrical

Contractors Association vs

BESCOM & others

Amendment to Recovery of

Expenditure Regulations, 2004

24.3.15

52 OP 22/15 24.8.15 Vidyut Grahakara Hitarakshana

Vedike vs BESCOM & others

-do- 24.3.15

53 OP 2/15 14.1.15 Shah Distributors vs GESCOM Payment from CoD 31.3.16

54 OP 3/15 19.1.15 Shri Krishna Minerals-1 vs

GESCOM & another

Payment from CoD 31.3.16

55 OP 4/15 19.1.15 Shri Krishna Minerals-2 vs

GESCOM & another

Payment from CoD 31.3.16

56 Suo motu

case no. 1/15

Savitha Oil Technologies Ltd &

CESC

Revision of tariff based on CoD 31.3.16

57 Suo motu

case no. 2/15

Savitha Oil Technologies Ltd &

CESC


58 Suo motu

case no. 3/15

Avon cycles Ltd & CESC


59 Suo motu

case no. 6/15

Canara PCC Poles & HESCOM Revision of tariff based on CoD 31.3.16

60 Suo motu

case no. 7/15

Atria Power Corporation Ltd &

BESCOM


17thAnnual Report

2016


Electricity Ombudsman

&

Consumer Grievance of Redressal Forum

17thAnnual Report

2016


13. CONSUMER GRIEVANCES REDRESSAL:

(1) Performance of Ombudsman:

The Commission has appointed an Ombudsman under Section 42(6) of the

Electricity Act 2003, to hear and dispose of the grievances of the consumers

who prefer to challenge the orders of the Consumer Grievance Redressal

Forum (CGRF) constituted at the ESCOMs level.

During the financial year 2015-16, 48 cases were registered and 6 cases were

brought forward from the previous fiscal year, totalling to 54 cases. Of these,

the Electricity Ombudsman has conducted hearing and disposed of 29 cases

during the year, leaving a balance of 25 cases.

The subjects dealt with by Ombudsman mainly relate to back billing, slow

recording of meters and extending Time of Day facility.

(2) Review of the working of Consumer Grievance Redressal Forums (CGRF)

Consumer Grievance Redressal Forum have been established by the

Distribution Licensees in every Revenue District of their jurisdiction, which is

chaired by an officer of the Licensee not below the rank of Superintending

Engineer and one Member being officer of the Licensee not below the rank

of Executive Engineer. The KERC had nominated one Member to each CGRF

from among the persons who have experience or knowledge of electricity

sector/consumer affairs from various fields.

The creation of CGRFs in each revenue district has helped consumers to get

their grievances redressed expeditiously at district level itself, which saves

them considerable time and cost.

17thAnnual Report

2016


During the financial year 2015-16, the ESCOM wise status of grievances

redressed is as follows:

Name of

ESCOM

Opening

balance

Filed during

the year

Disposed

during the

year

Balance at

the end of

the year

BESCOM 16 95 53 58

MESCOM 5 10 13 2

CESC 4 9 12 1

HESCOM 33 99 116 16

GESCOM 22 9 18 13

TOTAL 80 222 212 90

17thAnnual Report

2016


Programme for FY17

17thAnnual Report

2016


14. PROGRAMME FOR THE YEAR AHEAD

The following activities are planned for the FY17:

(1) Review of performance of ESCOMs:

With a view to improve the services to the consumers, the Commission would

continue to review the performance of the ESCOMs on parameters like

quality of supply, energy audit, interruptions, accidents, providing new

services, billing and collection, replacement of faulty meters etc. The

Commission would hold quarterly meetings with the ESCOMs and review their

performance and direct them to take corrective measures wherever

necessary.

(2) Prudence check of capital expenditure incurred by KPTCL and Distribution

Licensees for FY16:

The Commission would initiate Prudence check of capital expenditure

incurred by KPTCL and Distribution Licensees while reviewing the annual

performance for FY16. The Commission will conduct the prudence check of

capex as per the guidelines issued earlier. The prudence of capital

expenditure and procurement of material during FY16 would be analysed for

considering allowance of interest on loan and depreciation for FY16.

(3) APR for the FY16 and Revision of the ARR/Retail Supply Tariff of Distribution

Licensees for FY18:

The Commission will review the ARR of KPTCL/ESCOMs and SEZs for FY18 along

with the APR for the FY16. Subsequently, based on the revised ARR, the retail

supply tariff is proposed to be revised.

(4) Fuel Cost Adjustment Charges:

In accordance with the KERC (Fuel Cost Adjustment Charges) Regulations

2013, the Commission would determine the fuel cost adjustment charges for

each quarter of the financial year 2016-17.

17thAnnual Report

2016


(5) Regulations on Renewable Energy:

The Commission proposes to issue Regulations on determination of Tariff for

Renewable sources of energy (Solar energy). The proposed Regulations

would include norms on financial and technical parameters. The proposed

Regulations would also specify the tariff determination methodology and

term of tariff.

(6) Review of compliance to Directives:

The Commission would periodically review the compliance of the ESCOMs on

various directives issued in the Tariff Orders dated 30th March, 2016.

(7) Revision of tariff for grid-interactive rooftop and small kilowatt scale solar

photovoltaic plants.

The Commission would issue appropriate orders revising the tariff for these

plants based on the comments / suggestions received to its discussion papers

on the subject.

(8) Promotion of power generation from Municipal Solid Waste.

The Commission would consider determination of appropriate preferential

tariff for promoting power generation from Municipal Solid Waste.

(9) Improvement of the functioning of Consumer Grievance Redressal

Forums.

The Commission would take necessary measures to make the Consumer

Grievance Redressal mechanism more effective and efficient by interacting

with all the stakeholders.

17thAnnual Report

2016


ANNEXURE - I

ORGANISATION CHART

17thAnnual Report

2016


ANNEXURE – II

LIST OF MEMBERS OF STATE ADVISORY COMMITTEE OF KERC

1. The Managing Director

Karnataka Power Transmission

Corporation. Ltd., Cauvery Bhavan,

Kempegowda Road,

Bengaluru -560 009

Ph : 080-22214342/22244556


Karnataka Power Corporation Ltd.

Shakti Bhavan, Race Course Road,

Bengaluru – 560 001

Ph: 080 –22255606 /22204153


Bangalore Metro Rail Corporation

Ltd,

3rd Floor, BMTC Complex,

K H Road, Shanthinagar,


4. Sri C A Subbaiah

Basavanagudi Estate,

Badaga Banangala Village, Maldare

(P.O)

Kodagu- 571 253

5. President,

KASSIA, No.2/106, 17th Cross

Magadi Chord Road, Vijayanagar,

Bengaluru – 560 040.

Ph: 28362178(O), 23493353 ( R),

9845031122

6. Director General,

Central Power Research Institute,

(CPRI), Prof. Sir. C. V. Raman Road,

Sadashivanagar, BANGALORE–560

080

(M) 9448362457

7. The Secretary to Government

Dept. of Food & Civil Supplies &

Consumer Affairs, M.S. Building


Ph:22259024


BESCOM

K.R.Circle


Ph: 22354929


GESCOM

Station Road

GULBARGA -585 101

08472-256581; 9449597444

10. Sri B.G.Rudrappa

Former Chairman –KEB

278/2,9th ‘A’ Main Road, II Block,

Jayanagar, Bengaluru -560 011

Phone: 080 –26563366

11. Dr. R .S .Deshpande,

No. 405, 5th Main,

Kendra Upadhyayara Sangha

Layout, Nagarabhavi Post,


Ph:23215555; (M)9845436096

12. Dr. S.L.Rao,

D1, Chartered Cottage,

Langford Road


(M) 9343198450 (R) 080-22275132

13. The President,

Karnataka Chamber of Commerce

& Industry,

G. Mahadevappa Karnataka

Chamber Building, J.C. Nagar,

HUBLI- 580 020.

Ph: 0836-2218234/5

14. President

Confederation of Indian Industry

Karnataka State Branch

1086, 12th Main HAL 2nd Stage,

Indiranagar

Bengaluru – 560 008 (Ph. 25276544)

17thAnnual Report

2016


15. Sri V Ramakrishna

No. 490, 10th cross,

Sadashivanagar,

Bengaluru - 560 080

Ph: 9008344948

16. Sri Deepak Gala

C/o Hyderabad Karnataka

Environment Awareness and

Protection Organisation, No. 8-142,

Asif Ganj,

Kalaburagi- 585 101

Ph. 9036191000

17 Sri M G Prabhakar

Chairman for Energy Committee,

FKCCI, Federation House,

K G Road,

Bengaluru- 560 080

Ph: 080 22262355

Invitees

The Additional Chief Secretary to

Government,

Department of Energy,

Vikasa Soudha,


Ph: 22252373

The Managing Director

MESCOM, Paradigm Plaza

A.B.Shetty Circle

MANGALORE –575 001

0824-2444300

The Chief Engineer,

Karnataka State Load Despatch Centre,

KPTCL, Race Course Road,

Bengaluru -560 009.

Ph. 9448471411; 22267034


CESC, No.927, L.J. Avenue

New Kantharaja Urs Road,

Saraswathipuram

MYSORE – 570 009

Ph: 0821 –2417101

Director Technical,

Karnataka Power Transmission

Corporation Ltd.

Cauvery Bhavan, Kempegowda Road,

Bengaluru -560 009

Ph: 22229496


HESCOM

P B Road, Navanagar,

HUBLI – 580 025

Ph: 0836-2322771; 9448277614

Managing Director,

Karnataka Renewable Energy

Development Ltd. (KREDL),# 39, "Shanthi

Gruha", Palace Road,

Bengaluru - 560 001

Ph:080- 22207851/ 22208109.

Vice President, BCIC

And Chairman, Energy, Environment

and Water Expert Committee,

Bangalore Chamber of Industry

and Commerce,

No. 3 / 4, 3rd floor, C Block,

Unity Buildings, J C Road,


Ph: 080-22223321

16 th annual report of kerc 2014-15 - karnataka · 17 thannual report 2016 karnataka electricity...

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