arr 2013 14 final corrected

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BEFORE THE HONOURABLE KERALA STATE ELECTRICITYREGULATORY COMMISSION AT THIRUVANANTHAPURAM

Filing No. /2012

Case No. ____________

IN THE MATTER OF: Application for approval of the AggregateRevenue Requirement and Expected Revenuefrom Charges for the year 2013-14

And

IN THE MATTER OF: Kerala State Electricity BoardVydyuthi Bhavanam, Pattom,

Thiruvananthapuram 695 004

The petitioner named above respectfully submits as under:

1. This application for approval of the Aggregate Revenue Requirement(ARR) and the Expected Revenue from Charges (ERC) for the year2013-14 is filed before the Honourable Kerala State ElectricityRegulatory Commission, (herein after referred to as the Commission), inaccordance with the provisions of the Electricity Act, 2003.

2. This application has been prepared as per the terms and conditions for

determination of tariff under Section 61 of the Electricity Act, 2003 andthe terms and conditions of the Kerala State Electricity Commission(Tariff) Regulations, 2003 issued by the Honble Commission. Therelevant provisions of Indian Electricity Act 1910, Electricity (Supply)Act, 1948 and Electricity Regulatory Commission Act, 1998 which are notcontradictory to the Electricity Act 2003, were taken into considerationwhile preparing this petition.

Background

3. Kerala State Electricity Board (KSEB) is a statutory body constituted on01-04-1957 under Section 5 of the Electricity Supply (Act), 1948 for the

coordinated development of Generation, Transmission and Distributionof electricity in the State of Kerala. As per the provisions of theElectricity Act-2003, KSEB continued as a State Transmission Utility (STU)and Distribution Licensee till 24-09-2008, performing same functions ofgeneration, transmission and distribution of electricity within the Stateof Kerala. In exercise of powers conferred under sub-sections (1), (2),(5), (6) and (7) of section 131 of the Electricity Act, 2003, StateGovernment vide the notification G.O (Ms).37/2008/PD dated 25th

September, 2008 has vested all functions, properties, interests, rights,obligations and liabilities of KSEB with the State Government till it is re-

vested in a corporate entity. State Government vide the order G.O (Ms)

KSEB ARR&ERC petition for the year 2013-14 Page 1


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No. 31/2012/PD dated 18-12-2012 has extended the time limit for re-vesting the assets and liabilities of KSEB up to 31-03-2013.

4. Over the last fifty five years, the total installed capacity of 109 MW toan installed capacity of Board has grown from 2654 MW and createdTransmission and Distribution networks of over 11195 and 324927 circuitkilometers respectively. At present, the Board caters to the needs ofabout 106 lakh consumers spread across the State.

5. This substantial growth in the power system has brought several changesin the characteristics of the system. The input cost structure andrevenue composition have undergone significant changes. Until therecent past, the hydroelectric plants owned by the Board supplied amajor portion of the energy requirement of the state. However, afterthe promulgation of the Forest Conservation Act in 1980, theimplementation of new hydroelectric projects has been seriouslyaffected and more costly thermal energy has to be generated /

purchased to meet the increasing demand. At present, 70% of the totalRevenue Requirement is for purchase of power.

6. A major factor affecting the power supply is the vagaries of monsoon.The failure of monsoon in the State during 2002-03, 2003-04, 2008-09and 2012-13 has caused huge additional liability on KSEB for procuringenergy from thermal plants/ short-term markets.

7. Over the years, the consumption of subsidized domestic sector has beenincreasing and now it accounts for approximately 49% of the total energyconsumed in the State. As a consequence, the peak demand in the stateis about 50% higher than that during off-peak hours. This has forcedKSEB to invest more to meet the peak demand and also to purchaseelectricity from outside the State at higher rates.

8. The Board had been supplying electricity at the lowest price in thecountry for several decades mainly because of the substantialcontribution from hydel resources. The changes in the power supply mixand increased demand during recent years has resulted in phenomenalincrease in the cost of power purchase. The increase in cost ofgeneration in all thermal projects due to dependence on imported coalas well as phenomenal rise in price of crude oil is adversely affecting thefinances of the Board. The upward revision of tariff norms for all central

generating stations by CERC as well as the new regulations for sharing ofinter-state transmission charges has also resulted in adverse financialimpact on KSEB. Moreover, the reigning inflationary trend in theeconomy is substantially impacting the expenses of the Board in allfronts. As a combined effect of all the above factors, there has beensignificant increase in the Boards expenditure.

9. Despite the increase in cost of supply, no major tariff revision had beenmade in the State during the period from October-2002 to June-2012.But, considering the excessive increase in cost of power purchase andinflationary factors, the tariff applicable to all categories of consumers

had enhanced upto 25% to 30% with effect from 01-07-2012. However,the failure of monsoon during the year 2012-13 has resulted in an



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unprecedented increase in the cost of power purchase by about Rs2500.00 crore over the same approved by the Honble Commission. Theadditional financial liability incurred by the Board to purchase the highcost energy has severely affected financial position and had forced theBoard to resort to heavy borrowings from financial institutions.

10.The electricity demand in the State has been increasing by 7 to 8%annually and the demand for the ensuing year 2013-14 cannot be metwith the energy availability from hydel and allocation from CentralGenerating Stations alone. A substantial part of the electricityrequirement of the State has been met through procuring power fromshort-term market. However, due to the transmission constraints in theSouthern grid, there is limitation in procuring power from traders andenergy exchanges from outside the State. This has forced KSEB todepend heavily on the liquid fuel stations- RGCCPP Kayamkulam, BDPPand KDPP. The variable cost of energy from liquid fuel stations is about

Rs 11.50 per unit. Out of the total cost of purchase, about 25% of thecost is account for procuring about 10% of the energy from liquid fuelstations. However, considering the gap between energy demand andavailability, KSEB could not fully dispense with the electricity from liquidfuel stations during the ensuing year.

11.Though the Board has been statutorily enjoined to function as acommercial institution, it continues to function mainly as serviceoriented institution by providing infrastructure facility, reliefs andconcessions to other sectors like industry, agriculture and so on.

Aggregate Revenue Requirement for the year 2012-13 and 2013-14

12.The ARR for the year 2012-13 was submitted before the Commission on31-12-2011, showing a revenue gap of Rs 3240.25 Crores. TheCommission has issued orders on ARR&ERC for the year 2012-13 on 28-04-2012 and approved the revenue gap as Rs 1889.15 crores.

13.The revised estimates for the year 2012-13 leaves a revenue deficit ofRs 3564.40 Crores and the estimate for the year 2013-14 accounts for arevenue deficit of Rs 2758.67 Crores.

14.Accordingly, the revised estimate of ARR & ERC for the year 2012-13 andestimate of ARR & ERC for the year 2013-14 are submitted as follows:

Revised Estimate for the year 2012-13Rs. in Crores

Description FY 2012-13a Aggregate Revenue Requirement 11562.63b Non-tariff Income 361.39c Revenue from sale of power 7636.84

d = b + c Total income 7998.23e= a d Revenue Gap 3564.40



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Estimate for 2013-14Rs. Crores

Description FY 2013-14A Aggregate Revenue Requirement 11237.11B Non-tariff Income 333.20

C Revenue from sale of power 8145.24d= b + c Total income 8478.44e = a d Revenue Gap 2758.67

Treatment of the Revenue Gap15.As against the revenue gap of Rs. 1889.15 Crores approved for the year

2012-13, the revised estimated revenue gap is Rs. 3564.40 Crores. It isrequested that the Honble Commission may approve the revised revenuegap for 2012-13

16.The projected revenue gap for the financial year 2013-14 is Rs 2758.67Crores. This is based on expected revenue of Rs. 8478.44 Crores from thesale of power and the aggregate revenue requirement (i.e. all expensesplus ROE) of Rs 11237.11 Crores.

17. If the entire estimated revenue gap is bridge through tariff revision, itmay results in an average increase in tariff for all categories ofconsumers by 34.40% and it may results in tariff shock to the consumers.Hence, it order to avoid tariff shock, KSEB may propose a moderateincrease in tariff applicable to all categories to mobilize an additionalrevenue to the extent of Rs 1573.54 crore during the year 2013-14. The

details of the proposals are given in Chapter-11. KSEB may request that,Honble Commission may allow to treat the balance unbridged revenuegap as regulatory asset and allowed to recover the same through tariff inthe subsequent years.

Other issues18.The Board is in the transitory phase of implementing provisions of the

Electricity Act 2003. Some of the future events/contingencies havingmajor financial implications and will necessitate revision of theestimates for 2013-14. In view of this, the Board hereby submits beforethe Honble Commission to be pleased to allow the following fourproposals for improving the Boards financial health and its ability toserve its consumers over a longer period.a. to allow the uncovered revenue gap, if any, as regulatory assets.b. to pass on the additional cost of generation and power purchase over

the approved level, due to failure of monsoon, reduction in allocationfrom CGS, hydro-thermal mix change, price variation due toescalation in prices of liquid fuels, coal etc on a quarterly basis to theconsumers.

c. to file interim petition in the event of contingency.d. to allow to submit year end truing up of costs and revenues of the

Board and to allow any unrecovered costs in the subsequent years,thereby, protecting the commercial viability of the Board



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19.The Board has made every effort to provide detailed information forcomputation of the revenue requirement and expected revenue. TheBoard is continuously updating its management information system,which would enable it to provide improved data / information in the

subsequent filings as may be required by the Commission.

20.This application for approval of ARR and ERC for 2013-14 contains thefollowing parts:

Affidavit verifying the application

Aggregate Revenue Requirement and Expected Revenue fromCharges for the year 2013-14.

The proposals to bridge the revenue gap for Rs 1572.90 crore.

FORMS T1 to T5 accompanying the tariff proposals.

Annexures and Data forms.

Prayer21.The Board therefore prays to the Honble Commission that: -

(a) The accompanying ARR & ERC for 2013-14 containing therevised estimate for 2012-13 and estimate for 2013-14 may beapproved;

(b) The proposals to bride the revenue gap may also be approved;(c) Board may be allowed to revise the projections for 2013-14 in

the event of poor monsoon, abnormal increase in fuel pricesand other contingencies that may crop up during the course ofimplementation of the Electricity Act 2003 and also re-vestingthe assets and liabilities in a company to be incorporatedunder the Indian Companies Act-1956.

(d) The Board may be allowed to pass on the additional cost ongeneration and power purchase over the approved level due tofailure of monsoon, reduction in allocation from CGS, hydro-thermal mix change, price variation due to escalation in pricesof liquid fuels, coal, lignite etc to the consumers during thefinancial year 2013-14 itself based on the actuals furnished bythe Board on a quarterly basis.

(e) The request for truing up of Boards costs and revenues at the

end of the financial year concerned may be accepted and anyrevenue gap arising out of this truing up exercise be allowed tobe recovered through tariffs etc. in the subsequent year.



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BEFORE THE KERALA STATE ELECTRICITY REGULATORYCOMMISSION

at its office at C.V. Raman Pillai Road, Vellayambalam,Thiruvananthapuram.

FILING NO. /2012

CASE No.

IN THE MATTER OF:

Application for approval of the Aggregate Revenue Requirement (ARR)and approval of the Expected Revenue from Charges (ERC) for the year

2013-14 under section 64 of the Electricity Act 2003

AND

IN THE MATTER OF:

Kerala State Electricity Board, Vydyuthi Bhavanam, Pattom,Thiruvananthapuram

Applicant

Special Officer, Manging Committee,Kerala State Electricity Board



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AFFIDAVIT VERIFYING THE APPLICATION ACCOMPANYING FILING THE ARR& ERC OF KSEB FOR THE YEAR 2012-13:

I, M. Sivasankar, S/o N. D. Madhavan Nair aged 49 years, residing at,Devadarsana, Katturoad, Poojappura, Thiruvananthapuram do herebysolemnly affirm and state as follows:

I am the Special Officer, Managing Committee of the Kerala StateElectricity Board, Vydyuthi Bhavanam, Pattom, Thiruvananthapuram, andthe petitioner in the above matter and I am duly authorized by the Board tomake this affidavit on its behalf. I solemnly affirm at Thiruvananthapuramon this, the 2nd day of January-2013 that

(i) the contents of the above petition are true to my information,knowledge and belief. I believe that no part of it is false and nomaterial has been concealed there from.

(ii) the statements made in paragraphs of the accompanyingapplication are true to my knowledge and are derived from theofficial records made available to me and are based oninformation and advice received which I believe to be true andcorrect.

Deponent

Special Officer, Manging Committee

Kerala State Electricity Board,Vydyuthi Bhavanam, PattomThiruvananthapuram 695 004

VERIFICATIONI, the above named deponent, solemnly affirm at

Thiruvananthapuram on this, 2nd day of January-2013 that the contents ofthe affidavit are true to my information, knowledge and belief, that no partof it is false and that no material has been concealed there from.

Deponent

Special Officer, Manging CommitteeKerala State Electricity Board

Vydyuthi Bhavanam, PattomThiruvananthapuram 695 004.

Solemnly affirmed and signed before me.

Advocate and Notary



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TABLE OF CONTENTS

Page No1 INTRODUCTION 11

2 PERFORMANCE OF THE BOARD 162.1 Introduction 16

2.2 Reduction in transmission and distribution losses 16

2.3 Anti-power theft activities 17

2.4 Efforts taken for collection of arrears 17

2.5 Trends in capital liabilities and interest and financecharges

19

2.6 Efforts in Generation and Power purchase 192.7 Computerization 20

2.8 Compliance of directives issued by the HonbleCommission vide the order on ARR&ERC for the year 2012-13.

20

3 CAPITAL INVESTMENTS 22

3.1 Strategy for Capital Investment during 12th plan 22

3.2 Generation Plan 22

3.3 Transmission plan 25

3.4 Distribution plan 25

3.5 The details of the physical target of projects by KSEB 263.6 The abstract of the financial target proposed for the 12th

year plan27

3.7 Review of Capital Outlay for the year 2012-13 andro osal for the ear 2013-14

27

4 ENERGY SALE FORECAST 30

4.1 Review of the energy consumption of different categoriesof consumers

30

4.2 Review of Energy Consumption for 2011-12 324.3 Revised estimate of energy sale for the year 2012-13 334.4 Energy sale forecast for the year 2013-14 35

5 REDUCTION OF AGGREGATE TECHNICAL & COMMERCIAL LOSSES 38

5.1 Introduction 38

5.2 Estimation of Transmission and Distribution losses 39

5.3 Efforts for T&D loss reduction for the year 2012-13 and2013-14

42

6 REVIEW OF GENERATION AND POWER PURCHASE MADE DURINGTHE YEAR 2012-13

47



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6.1 Introduction 47

6.2 Failure of the south-west monsoon and consequentreduction in inflow and hydel generation.

48

6.3 Excessive increase in energy demand over the same

approved by the Commission.

50

6.4 Energy availability from Central Generating Stations 52

6.5 Arrangements already made to procure power throughtraders & energy exchanges and UI

53

6.6 Demand and supply position during the period fromDecember-2012 to May -2013

54

6.7 Anticipated increase in cost of generation and powerpurchase for the period from December-2012 to March-2013

55

6.8 Increase in cost of generation and power purchaseincurred over the approved level.

55

6.9 Likely increase in cost of generation and power purchasefor the year 2012-13.

56

6.10 Regulations imposed in the State for reducing theadditional liability on Generation and Power purchase.

57

7 GENERATION AND POWER PURCHASE FOR THE YEAR 2013-14 59

7.1 Introduction 597.2 Review of Energy Demand 597.3 Estimation of Hydel generation for 2013-14 61

7.4 Energy and Capacity available from Central GeneratingStations for the Year 2013-14 65

7.5 Energy availability from Wind and other Small IPPs in theState

71

7.6 Power purchase proposed through the traders, energyexchanges etc.

73

7.7 Energy procurement from liquid fuel stations 757.8 Summary of the energy demand and supply position for

the year 2013-14.76

7.9 Summary of the cost of generation and power purchase

for the year 2013-14

77

8 AGGREGATE REVENUE REQUIREMENT 78

8.1 Cost of Generation and Power Purchase for the Year2013-14

78

8.2 Interest and Finance charges 788.3 Depreciation 908.4 Employee Costs 96

8.5 Repairs and Maintenance Cost (R&M) 109

8.6 Administration and General Expenses 1148.7 Other Expenses 119



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8.8 Return on Equity 120

8.9 Summary of the Aggregate Revenue Requirement 122

9 EXPECTED REVENUE FROM CHARGES 124

9.1 Introduction 1249.2 Revenue from tariff for the year 2011-12 125

9.3 Estimate of revenue from sale of power for the year 2012-13

125

9.4 Estimate of the revenue from sale of power for the year2013-14

129

9.5 Non Tariff Income 1309.6 Total Expected Revenue from Charges 132

10 SUMMARY OF AGGREGATE REVENUE REQUIREMENT FOR THEFINANCIAL YEAR 2013-14 133

11 PROPOSALS TO BRIDGE THE REVENUE GAP FOR THE YEAR2013-14

142



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CHAPTER-1

INTRODUCTION

1.1. The Kerala State Electricity Board (KSEB) is a statutory bodyconstituted on 01-04-1957 under Section 5 of the Electricity Supply(Act), 1948 for the co-ordinated development of Generation,Transmission and Distribution of electricity in the State of Kerala. Asper the provisions of the Electricity Act-2003, KSEB continued as aState Transmission Utility (STU) and Distribution Licensee till 24-09-2008, performing the functions of generation, transmission anddistribution of electricity within the State of Kerala. In exercise ofpowers conferred under sub-sections (1), (2), (5), (6) and (7) ofsection 131 of the Electricity Act, 2003, State Government vide thenotification G.O (Ms).37/2008/PD dated 25th September, 2008 hasvested all functions, properties, interests, rights, obligations and

liabilities of KSEB with the State Government till it is re-vested in acorporate entity. State Government vide the order G.O (Ms) No.31/2012/PD dated 18-12-2012 has extended the time limit for re-vesting the assets and liabilities of KSEB upto 31-03-2013.

1.2. Till now, KSEB is the generator and power procurer of all consumersof the State including the small and bulk consumers. KSEB has beendirectly providing power supply to 99.8% of the total consumers ofthe State and the remaining 0.2% is being served by other licensees.As on date, KSEB has been providing power supply to more than106.90 lakh consumers of the State. KSEB has been performing the

planning and development of the power system over the years byutilizing the resources of the Board and the Government.

1.3. As a fully owned Government public utility, KSEB has beenimplementing all the policy directions of the State Government suchas providing free electricity to consumers below poverty line, givingpriorities for service connections to weaker sections in the society,subsidy to agricultural consumers, orphanages and similar othereligible consumers as decided by the Government from time to time,tariff concessions to industrial sector etc. KSEB has been

implementing various schemes formulated by Central Governmentsuch as Restructured Accelerated Power Development and ReformProgram (R-APDRP), Rajiv Gandhi Grameen Vidyutikaran Yojana(RGGVY) schemes in the State towards accomplishing the nationalgoals such as cent percent household electrification, electrificationof all dwellings, settlements etc. Further, KSEB has been taking stepsfor 100% electrification, implementing demand side management(DSM) activities etc.

1.4. The growth of the Kerala power system during the last 55 years isgiven in the Table below.



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Table-1.1Growth of Kerala Power System

Year

Installed Capacity in MW AnnualSales in

MU

Consumerstrength (in

Lakhs)

Per CapitaConspn.(kWh)

EHT lines(ckt.kms)

S/s (Nos)HT lines(ckt .km)

LT lines(ckt. Km)

DistTrfrs(Nos)Hydel

Thermal(Incl. IPPs)

Wind Total

57-58 109 0 0 109 363 1.1 19 1600 15 3851 4980 1862

60-61 133 0 0 133 518 2 30 1900 22 5449 8899 2898

73-74 622 0 0 622 2121 8 79 3378 59 9645 25968 8285

80-81 1012 0 0 1012 4499 16 109 4638 92 14189 55963 11656

90-91 1477 0 0 1477 5331 35 185 5885 140 20221 101834 17838

99-00 1743 594 2 2339 9812 60 300 7599 179 28672 180499 29551

00-01 1793 615 2 2409 10319 65 311 9085 194 30035 187169 31329

05-06 1850 592 2 2443 10906 83 427 10178 269 35060 215152 38193

06-07 1850 592 2 2443 11331 87 465 10593 276 37891 223370 39872

08-09 1887 592 24 2502 12414 94 470 10855 299 41245 241888 46510

09-10 1889 609 28 2525 13971 97 474 11060 317 44263 249524 50619

10-11 1995 617 36 2647 14548 101 481 11195 340 49232 266856 58427

11-12 2001 617 36 2654 16182 105 502 11282 3550 52146 272781 64036

1.5 Kerala Power System differs from other States in many respects. Themain features of the Kerala power system are detailed below.

(i) Vagaries of monsoon: At present about 55% of the peakdemand and 35% of the energy requirement is being met fromhydel plants owned and operated by KSEB. The energyavailability from hydel plants is being projected expectingnormal monsoon. However, any failure of monsoon and theresultant increase in power purchase will severely affect thefinancial stability of KSEB. The failure of monsoon during theyear 2012-13 alone has resulted additional liability ofRs 2500.00 crore on cost of power purchase.

(ii) High dependence on costlier power: Though the State hasabundant untapped hydel potential still to exploit, due toresistance from various quarters, new major hydel projectscould not be developed in the State. To meet the increase in

energy demand, KSEB has been depending heavily on the short-term market and energy exchanges. At present about 15 to 20%of the energy requirement of the State is being met fromshort-term markets.

(iii) Adverse consumer mix: About 51% of the total energyconsumption is by the subsidized categories like domestic,agricultural categories etc. But considering the socio-economicreasons, providing electricity to them at subsidized rates mayhave to continue for few more years.

(iv) Skewed peak off-peak demand in the state. Due to highconsumption of the domestic and other LT categories, the peakdemand in the State is about 50% higher than that of off-peak



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periods. This has resulted in power procurement at excessiverates during peak hours.

(v) HT-LT ratio. Considering the Geographic and demographicfeatures, KSEB has to develop more LT lines to provide thepower supply to the consumers. The HT-LT ratio in the State isabout 1:4 against the ideal level of 1:1. This contributes moretechnical losses in the LT distribution system.

(vi) Lack of energy resources. The major energy resourceavailable in the state suitable for commercial production ofelectricity is hydel sources, the development of which isgreatly hampered after the enactment of Forest conservationAct, 1980.

(vii) Exposure to global oil prices. The efforts of the state toovercome the primary energy resource deficit have resulted in

heavy dependence on crude oil products such as Naphtha andLSHS. In fact Kerala is presently having the highest proportionof liquid fuel based installed capacity in the country with its771 MW liquid fuel based generators. This is exposing the stateand KSEB to the speculative fluctuations of global oil prices.For procuring just 6% of the energy requirement from liquidfuel power stations, KSEB has been spending more than 25% ofits total power purchase cost.

(viii) Transmission constraints to import power from outside theState

The transmission capability to import power through theinterstate feeders of KSEB too is limited to 1800 MW onlyincluding the share from CGS. Further, due to the transmissioncorridor constraints, open access is being denied by SRLDC forimporting power from outside the State. This has beenhampering the possibility for procuring power through tradersfrom outside the State at competitive rates, while inturn alsoresulted in increase in prices for power procurement.

1.6 The primary mission of KSEB is to provide quality power at affordable

cost, on demand, to the consumers of the State and to act as acatalyst for total development of the State. The Electricity Act-2003and other policies notified by the Central and State Governments arethe governing laws and KSEB has to function on commercialprinciples.

1.7 The State Government has constituted the Kerala State ElectricityRegulatory Commission (KSERC) vide the G.O dated 14-11-2002, underthe provisions of the Electricity Regulatory Commission Act 1998 (ERCact 1998) and continues as per the provisions of the Electricity Act-2003. The Commission, as per the powers vested in the Electricity Act

2003, has formulated the Kerala State Electricity RegulatoryCommission (Tariff) Regulations 2003. KSEB has been submitting the



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Aggregate Revenue Requirement and Expected Revenue from Charges(ARR & ERC) since the year 2003-04. The present petition is the ARR& ERC for the year 2013-14 and is the eleventh one in the series.

1.8 As stated under paragraph-1.1 above, the Board is now passing

through a transitional phase of reforms taking place in the electricitysector. Though the Electricity (supply) Act 1948, stands repealed withthe enactment of Electricity Act 2003, as per the section 185(2) (d) ofElectricity Act, all rules made under sub-section (1) of section 69 ofthe Electricity (Supply) Act 1948, shall continue to have effect untilsuch rules are rescinded or modified as the case may be. KSEB hasbeen following the Electricity (Supply) Annual Accounts Rules 1985for preparation of the Annual Accounts of the Board as it is not yetrescinded or modified. The accounts of KSEB are being audited everyyear by the Comptroller and Auditor General of India. The statutoryauthority of the C & AG also has not been altered by the new Act(Electricity Act, 2003).

1.9 Further, The Honble Commission is in the process of notifying theTariff Regulations under section-61 of Electricity Act-2003, applicableto KSEB as a Generator, State Transmission Utility and a DistributionLicensee. Since the Tariff Regulation is yet to be notified, thepresent petition is prepared in consistence with the provisions ofESAAR-1985. Further, as per the section-61(a) of the Electricity Act-2003, the tariff determination of the SERC shall be guided by the theprinciples and methodologies specified by the Central Commission for

determination of tariff. In consistence with prudent utility practices,the principles specified by the Central Commission for tariffdeterminations-CERC (Terms and Conditions of Tariff) Regulations,2009 have also been adopted while preparing the present petitionwherever applicable.

1.10 Therefore, this petition has been formulated under the assumptionthat the procedures and practices being followed will be continueduntil the new rules, regulations and procedures are fullyimplemented. If the regulations etc as envisaged in the Electricity Act2003 are firmed up and come into operation in 2013-14, this petition

might require revision as may be required. The present petition hasbeen prepared considering the Board as a single entity as oftoday.

1.11 This petition contains 11 Chapters. Chapter-2 of this petitiondescribes the performance of the Board during the recent years.Chapter-4 of the petition deals with the estimate of demandprojections of different categories of consumers. A review of thegeneration and power purchase made during the year 2012-13 is givenas Chapter-6. The strategy on Generation and Power Purchase for theyear 2013-14 is given under Chapter-7. The estimate of AggregateRevenue Requirement and the estimate of the Expected Revenuefrom Charges are given in Chapter-8 and Chapter-9 respectively. Thesummary of the ARR & ERC including the prayer of the Board is given



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in Chapter-10. The proposals to bridge the revenue gap have beendetailed under Chapter-11.

1.12 The revised estimate of the revenue expenditure of the Board for theyear 2012-13 is Rs. 11562.63 Crore and the revenue receipts is

Rs. 7998.23 crore leaving a revenue gap of Rs. 3564.40 Crores.

1.13 The ARR for the year 2013-14 is Rs 11237.11 Crores as against theestimated revenue receipts of Rs 8478.44 Crores leaving theestimated revenue deficit of Rs 2758.67 Crores.

1.14 Though the estimated revenue gap for the year 2013-14 is Rs 2758.67crores, in order to reduce the tariff shock to the consumers, KSEBpropose to mobilize an additional revenue amounting to Rs 1573.54crores through the tariff proposal during the ensuing year 2013-14.Honble Commission may kindly allow treating the balance gap asregulatory assets and allow carrying cost for the same till it is fullyrecovered through tariff.

1.15 Considering the above, KSEB kindly request before the HonbleCommission to:

(1) To approve the revised estimated expenses amounting toRs 11562.63 Crore, income of Rs 7998.23 Crore and therevenue gap of Rs. 3564.40 crore for the year 2012-13.

(2) To approve the estimated expenses of Rs 11237.10 Crore,income of Rs. 8478.44 Crore and the revenue gap of Rs.

2758.67 Crore for the year 2013-14.

(3) To allow the revenue gap as per the revised estimates for2012-13 projected in this petition.

(4) To approve the proposals to bridge the revenue gap as detailedin this petition.

(5) To recognize the concept of Regulatory Asset and treat thebalance unbridged revenue gaps as Regulatory Asset and allowcarrying cost for the same till it is fully out the same.

(6) To allow the Board to revise the present estimates in the event

of abnormal increase in fuel price or failure of monsoon during2013-14 or if there are major changes in the assumptions takenin this petition due to any contingency that may occur due toreasons beyond the control of the Board.

(7) To allow the Board to submit a proposal for truing up of thecost at the end of financial year 2013-14 and any revenue gaparising out of such truing up be allowed separately.

(8) To permit the Board to present the case in person and submitother details / information as may be necessary before theCommission to enable to take a final decision on the matter.



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CHAPTER-2

PERFORMANCE OF THE BOARD

2.1 Introduction

KSEB is continuing as a single power utility, performing the functionsof Generator, State Transmission Utility and Distribution Licensee inthe State of Kerala. KSEB has been taking several initiatives toimprove its physical and financial performances. Some of them aredetailed in this chapter.

2.2 Reduction in transmission and distribution losses2.2.1 KSEB has been consistently reducing the Transmission and Distribution

losses in the Kerala power system. Since the year 2001-02, KSEB hasbeen able to reduce the T&D loss from 30.76% to 15.11%. By way ofconsistently reducing the T&D losses, KSEB was able to makesubstantial savings on the cost of generation and power purchasesince the year 2001-02. The details are given below.

Table 2.1Reduction in cost of Generation and Power Purchase due to T&D loss reduction

Year

T&D Losswithin KSEB

system

Extent of reduction(%) Total Energy

sales withinthe State

Savings inGeneration &

PowerPurchase

Savings inPower

purchasecost)*

Yearly Cumulative

(%) (%) (%) (MU) (MU) (Rs.Cr)

2001-02 30.76 8667.32

2002-03 29.08 1.68 1.68 8873.3 303.57 106.3

2003-04 27.44 1.64 3.32 8910.84 588.84 206.1

2004-05 24.95 2.49 5.81 9384.4 1049.24 367.2

2005-06 22.96 1.99 7.8 10269.8 1501.70 525.6

2006-07 21.47 1.49 9.29 11331.00 1935.93 677.6

2007-08 20.02 1.45 10.74 12049.85 2336.93 817.9

2008-09 18.83 1.19 11.93 12414.32 2635.18 922.3

2009-10 17.71 1.12 13.05 13971.09 3199.90 1120.0

2010-11 16.09 1.62 14.67 14547.9 3673.32 1285.6

2011-12 15.65 0.44 15.11 15980.53 4134.40 1447.05

@ average cost of power purchase Rs 3.50 per unit.

2.2.2 As detailed above, KSEB was able to make substantial savings on thecost of generation and power purchase since the year 2001-02. Thetotal savings on cost of generation and power purchase for the year2011-12 alone is about Rs 1447.05 crore through the reduction in T&Dlosses achieved since the year 2001-02.



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2.3 Anti-power theft activities2.3.1 KSEB has been taking sincere efforts on Anti Power Theft Activities.

The APTS wing of KSEB is being headed by an officer from the PoliceDepartment in the rank of Inspector General of Police. Theperformance of the APTS wing and the amount assessed in theft cases

and the amount realized is detailed below.

Table 2.2Performance of APTS

YearNo of

Inspections

No of theftcases

Registered

AmountAssessed

AmountRealized

(Rs.Cr) (Rs. Cr)

2001-02 6215 52 5.69 3.45

2002-03 7888 93 17.48 3.82

2003-04 14354 275 12.27 5.24

2004-05 10287 365 40.46 8.11

2005-06 15611 981 21.69 9.822006-07 16221 1895 12.73 11.04

2007-08 18606 1144 16.93 10.50

2008-09 15792 504 29.58 18.97

2009-10 17936 369 30.63 20.47

2010-11 23479 2980 15.56 11.85

2011-12 24090 336 17.39 11.35

Total 170479 8994 220.41 114.62

2.4 Efforts taken for collection of arrears

2.4.1 The details of the arrears accumulated during the last three years aredetailed below.Table 2.3

Details of the arrears accumulated during last three years

Year

Arrear oust standing as on 31st of March

Totaldemand

Arrearsaccumulatedas (%) oftotaldemand

LT consumersHT &EHTconsumers

Total arrearsaccumulated

Amount

Increaseoverpreviousyear

Amount

Increaseoverpreviousyear

(Rs.Cr) (Rs.Cr) (Rs.Cr) (Rs.Cr) (Rs.Cr) (Rs.Cr) (%)

2009-10 295.57 800.98

2010-11 298.96 3.39 892.05 91.07 94.46 5198.53 1.82

2011-12 368.23 69.27 932.58 40.53 109.8 5593.02 1.96

2012-13 (up to sep-2012) 325.29 -42.94 881.01 -51.57

2.4.2 As detailed above, the total arrears accumulated during the year2010-11 and 2011-12 was 1.82% and 1.96% of the total accumulateddemand of these periods. Further, KSEB has been taking conciseefforts for collection of arrears during the year 2012-13.

2.4.3 It is further submitted that, out of the total accumulated arrears themain defaulter is Kerala Water Authority. Since KWA is using



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electricity for water pumping, KSEB is not in a position to disconnectthe power supply to KWA. As per the direction of the Honble HighCourt, a high level committee was constituted by the StateGovernment under the chairmanship of Chief Secretary to sort outthe payment of outstanding electricity dues to KSEB. However, there

is no progress and the arrears of the KWA has been accumulatingmonth over month at the rate of around Rs 12 crores per month. Thedetails are given below.

Table 2-4Accumulated arrears of KWA

Year

Arrear as on 31st of March

Total arrearsoutstanding *

LT consumers HT consumers

(Rs.Cr)

Increaseoverprevious

year

(Rs.Cr)

Increaseoverprevious

year2009-10 51.76 59.38 111.14

2010-11 63.79 12.03 116.62 57.24 180.41

2011-12 131.83 68.04 170.33 53.71 302.16

2012-13 uptoSeptember 128.70 -3.13 186.9 16.57 315.60

Arrears including interest for the delay in payment

KSEB request the Honourable Commission to give appropriatedirection to the Government and KWA to settle the arrears.

2.4.4 Further, out of the total arrears of about Rs 1206.29 crore as on31.09.2012, about Rs 568.00 crores is the arrears due from privateconsumers of which Rs 350 crore is being held by various court casesand balance Rs 178.00 crore is the arrear due from various closedunits. KSEB has issued strict directions to the legal counsels to vacatethe stay orders and to collect the arrears.

2.4.5 About Rs 690.00 crore is the arrears due from Public SectorUndertaking including KWA, Government Departments etc. Out of theabove, Rs 315.60 crore is the arrears of KWA alone. Further, about Rs235.00 crore is the past arrears due from Travancore Cochin

Chemicals, Steel Complex Limited, Malabar Cements etc. However,not much arrears have accumulated from Government Departmentsand PSUs except KWA during the last few years.

2.4.6 Further, about Rs 20.00 crore is the outstanding dues from Bulklicensees including M/s Kanaan Devan Hill Plantations Lmited,Technopark, M/s KINESCO etc.

2.4.7 KSEB has announced one time settlement schemes vide the orderdated 27-07-2012 and various concessions has been offered to the

consumers for clearing the long outstanding dues within the timestipulated.



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2.5 Trends in capital liabilities and interest and finance charges.2.5.1 During the period from 2003-04 to 2011-12, KSEB has considerably

reduced the outstanding capital liabilities from Rs 5355.65 crore ason 31-03-2004 to Rs 1356.33 crore as on 31-03-2012. This hasresulted in reducing the interest and finance charges from Rs 622.16

crore during the year 2003-04 to Rs 128.63 crore in 2011-2012. Theyear wise details of reduction on capital liabilities and interest &finance charges are detailed in the table below.

Table 2.5Reduction on capital liabilities and interest and finance charges

Year

Outstanding Capital liabilitiesInterest & finance chargeson capital liabilities

Outstandingcapital liabilitiesas on 31st March

Reduction over2003-04

AmountReduction overthe year 2003-04

(Rs.Cr) (Rs.Cr) (Rs.Cr) (Rs.Cr)2003-04 5355.65 622.16

2004-05 4541.32 814.33 535.54 86.62

2005-06 3713.62 1642.03 451.44 170.72

2006-07 2498.52 2857.13 318.49 303.67

2007-08 1856.71 3498.94 232.83 389.33

2008-09 1100.35 4255.30 151.31 470.85

2009-10 1409.48 3946.17 123.08 499.08

2010-11 1066.49 4289.16 120.85 501.31

2011-12 1356.33 3999.32 128.62 493.54

2.6 Efforts in Generation and Power purchase2.6.1 KSEB has been taking all possible efforts to optimize the generation

and power purchase through the following.(i) Scheduling the power strictly based on merit order.(ii) Taking all possible efforts to avail power through UI at

competitive rates.(iii) Procuring power through energy exchanges.(iv) Taking efforts to procure power through traders at most

competitive rates.(v) All possible efforts are being taken to reduce the power

procurement from liquid fuel stations.

2.6.2 During the year 2012-13; from April-2012 to November-2012, KSEBhad procured 2631 MU from short-term markets (1890 MU fromtraders & 741.05 MU from energy exchanges) at an average rate of Rs5.22 per unit. This shows an increase by more than double from thatof previous year and was warranted due to the failure of monsoonand consequent increase in demand.

2.6.3 KSEB has been taking all possible efforts to conserve maximum water

in the storage reservoirs for use in summer.



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2.7 Computerization(i) All section offices have been computerized(ii) Accounting software SARAS implemented in all ARUs(iii) E-payment facility for HT&EHT consumers implemented(iv) Software for Supply Chain Management implemented in all

Distribution offices(v) Computerization of Provident fund and payroll implementation

completed in all ARUs(vi) SMS based compliant registration system (SMS CRS)

implemented in distribution wing.(vii) Implementation of R-APDRP Part-A started in full swing(viii) In order to have a centralized data base for LT consumers a

new version of ORUMA software (ORUMA net) is being rolledout during the period 2013-14.

2.8 Compliance of directives issued by the Honble Commission vide theorder on ARR&ERC for the year 2012-13.

Honble Commission had issued a set of directives for compliance videthe order dated 28-04-2012 on ARR&ERC for the year 2012-13. Thepresent status of the action taken is given below.

1. Directive-1. Demand side management Activities.

Board has conducted high-level meeting on 23.08.2012 with allChief Engineers of distribution wing, Chief Engineer (CorporatePlanning) and officials from Energy Management Centre. Based

on the decisions on the meeting the following activities areinitiated.(a) Reduction of energy consumption in KSEB offices by 10%

compared to corresponding month in the previous year.

(b) Decided to implement of automatic street lighting inMunicipalities and Corporations. Local bodies are alsorequested to adopt street light metering with automaticcontroller. Board has decided to bear 50% of cost ofinstallation of controller.

(c) Energy conservation campaign utilizing the service of

lady volunteers of National Savings Department:Government has entrusted National Savings Department tocarry out energy conservation activities in addition to theirnormal duties. It is proposed to utilize the services of Mahilapradhans /SAS agents for door to door campaigning, afterimparting training to them by KSEB. The following are themessages spread through the NSD volunteers.

(1) Replacement of inefficient lighting systems like ICL,ordinary tube lights.

(2) Replacement of inefficient pump sets, air conditioners.refrigerators etc.



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(3) Avoiding the use of grid supply for illumination,advertisements etc.

(4) Advantages of reducing the peak load consumption in viewof the introduction of TOD tariff.

(5) The need for switching over to Renewable power sources

in view of the present power crisis.(6) Nalekkithiri Oorjam Programme which was conducted in

government schools was extended among all aided schoolsand colleges and residential associations.

2. Directive-2. Website of Kerala state Load Despatch Centre to

be revamped/remodeled

The website of the Kerala State Load Despatch Centre hasbeen modified; the system details are uploaded on a dailybasis and are now available in www.sldckerala.com.

3. Directive-3. Capital Investment Plan

Detailed report on the revised capital expenditure program forthe year 2012-13 was submitted to the Honble commissionvide letter dated 01.10.2012.

4. Directive-4.

Board has taken advance action for procurement of powerthrough traders for the year 2013-14 and about 200 MW hasalready been tied up with traders and the MTOA has also beenreceived.

Tender for power procurement through case-1 bid was alreadyfloated and KSEB intends to place the order for procuring 300MW RTC and 100 MW power from March-2014 onwards for threeyears.

5. Directive-5 .The report on the loss study was already submitted to theHonble Commission.

6. Directive-6. The implementation of R-APDRP (Part-A&B)projects are already accorded on top priority and time boundaction are being taken to ensure timely compliance.

7. Directive-7.KSEB has scheduled an action plan for the replacement offaulty meters. KSEB has so far replaced 5.05 lakhs faultymeters as on 30-11-2012. KSEB has been targeting to replaceabout 4.00 lakhs faulty during the remaining months of theyear 2012-13.

8. Directive-8.The Government has yet to take the final decision on the re-vesting of the assets and liabilities of KSEB. The time for

revesting has been extended upto 31st March 2013.



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CHAPTER 3

CAPITAL INVESTMENTS

3.1 Strategy for Capital Investment during 12th plan

3.1.1 Electricity is one of the key drivers for the economic growth andpoverty alleviation. The demand for electricity is increasing at a rateof about 8% in the State. It is the need of the hour to provide qualitypower at affordable rates to all needy consumers.

3.1.2 As per the 18th power survey, the maximum peak demand as on 2016-17 is 4669 MW and the annual energy consumption 22410 MU. It issubmitted that, the actual unrestricted demand of the State isslightly higher than the demand projection as per the 18th powersurvey.

3.1.3 KSEB proposes to meet the anticipated energy requirement throughits own capacity addition, additional allocation from ongoing CGS/UMPPs, procuring power from renewable including solar, developingthermal power projects using LNG/gas.

3.1.4 In order to meet the emerging energy requirement of the State, KSEBproposes to add about 248 MW of new hydel capacity (with 741.85 MUannual generation) during 12th plan period.

3.1.5 The transmission system needs to be strengthened in tune with thecapacity addition and additional power purchase from CGS. KSEB isgiving due importance for enhancing the load handling capacity of thetransmission system, avoiding bottlenecks/ congestion in power flow,providing adequate redundancy in transmission system to meet thesystem exigencies and ensuring availability of power in the State.

3.1.6 The distribution system also needs to be strengthened in tune withthe capacity addition in generation and strengthening of transmissionnetwork. KSEB, with a view to improving consumer satisfaction, isgiving due importance for strengthening the distribution network to

provide uninterrupted quality power to the consumers, reduce thetechnical and commercial losses and to improve the quality ofservices rendered to the consumers.

3.1.7 A brief description of the generation plan, transmission plan anddistribution plan proposed in the 12th plan period is detailed below.

3.2 Generation Plan

HYDEL Projects3.2.1 In order to meet the emerging demand of the State, KSEB proposes to

add 179.85 MW installed capacity (546.39 MU annual generation) bycompleting 14 ongoing hydroelectric projects during the 12th Plan



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period. It is also proposed that 37 new hydroelectric projects with atotal capacity of 570.2 MW (1461.45 MU annual generation) will betendered during the period, out of which 11 projects with a totalcapacity of 68.2 MW (195.46 MU generation) are expected to becompleted by 2016-17 and the remaining schemes during 13 th Plan

period. The details of the 12th plan schemes are given below.

Table-3.1 Hydel projects targeted for completion during 12th plan period

Sl. No. ProjectCapacity(MW)

Generation(MU)

Target year ofcompletion

A Ongoing Schemes

1 Peechi 1.25 3.21 2012-13

2 Vilangad 7.50 22.63 2013-14

3 Chathankottunada-II 6.00 14.76 2013-14

4 Chimony 2.50 6.70 2013-145 Perumthenaruvi 6.00 25.77 2013-14

6 Barapole 15.00 36.00 2013-14

7 Kakkayam 3.00 10.39 2013-14

8 Sengulam Augmentation 85.00 2013-14

9 Pallivasal Extension 60.00 153.90 2014-15

10 Thottiyar 40.00 99.00 2014-15

11 Adyanpara 3.50 9.01 2014-15

12 Vellathooval 3.60 12.17 2014-15

13 Poringalkuthu SHP 24.00 45.02 2015-16

14 Anakkayam 7.50 22.83 2016-17Total 179.85 546.39

B New schemes to be tendered and completed during 12th Plan

15 Olikkal 4.50 10.18 2014-15

16 Poovaramthode 2.70 5.88 2014-15

17 Upper Kallar 2.00 5.15 2015-16

18 Chembukadavu-III 6.00 14.92 2015-16

19 Ladrum 3.50 10.47 2015-16

20 Peechad 3.00 7.73 2015-16

21 Bhoothathankettu 16.00 60.00 2016-17

22 Western Kallar 5.00 14.29 2016-17

23 Marmala 7.00 16.72 2016-17

24 Chathankottunada-I 3.50 7.98 2016-17

25 Pazhassi Sagar 15.00 42.14 2016-17

Total 68.20 195.46

3.2.1 The year wise list of projects to be tendered during the 12th planperiod and to be completed during the 13th plan period is given in theTable 3.2 below.



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Table 3-2Hydroelectric projects to be tendered during 12th plan period and expected to be

completed during 13th plan

Sl. No Name of project MW MU District

To be tendered in 2012-13

1 Mankulam 40 82 Idukki

2 Chinnar 24 76.45 Idukki

3 Peruvannamoozhi 6 24.7 Kozhikode

Total 70 183.15


1 Upper Sengulam-I 24 59.2 Idukki

2 Kallar 4 11.36 Thiruvananthapuram

3 Kakkadampoyil-I 20 55 Malappuram

4 Kakkadampoyil-II 5 15 Kozhikode

5 Arippara 3 8.03 Kozhikode

Total 56 148.59

To be tendered in 2014-151 Achankovil 30 75.81 Pathanamthitta

2 Pambar 40 84.79 Idukki

3 Valanthode 7.5 16.82 Malappuram

4 Maripuzha 6 14.84 Kozhikode

7 Thoniyar 3 6.57 Idukki

8 Thommankuthu 2.5 6.02 Idukki

Total 89 204.85


1 Kanthanpara 66 162.23 Wayanad

2 Palchuam-II 6 13.66 Kannur

3 Palchuam-III 3.5 8.12 Kannur

4 Anakkampoyil 7.5 22 Kozhikode

5 Narangathode 9 24 Kozhikode

6 Keezharkuthu 15 49.80 Idukki

7 Moorikkadavu 2 5.92 Kannur

8 Vythiri 60 167.47 Wayanad

9 Thottiyar-II 30 88 Idukki

Total 199 491.4


1 Upper Sengulam-II 24 72 Idukki

2 Poringalkuthu-II 24 71 Thrissur

3 Mankulam-II 40 95 Idukki

Total 88 238 Total 13th Plan Projects 502 MW 1266

3.2.2 Wind projectsDetailed studies have revealed the wind potential of Kerala to beabout 600 MW. In order to augment the wind power capacity,Government has signed an MOU with NTPC to develop 200 MWcapacity wind energy units in the State on a build, own and operatebasis. Development of wind potential is hampered by lack ofconnectivity to potential sites by way of roads and transmission lines.Infrastructure needs to be developed to adequate level to harness a

total capacity of 500 MW from the wind by 2030.



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3.2.3 Solar projectsKSEB has been targeting to promote off-grid solar installation withbattery backup as a possible alternate choice for meeting the powerrequirement of the State, especially the peak demand of the State.The target group is domestic consumers with monthly consumption

above 200 units. KSEB with the support of the Government proposesto provide suitable Generation Based Incentive to the solardevelopers, in addition to the benefit of net metering- i.e., thesavings attained through replacing the high cost grid power with thesolar energy. KSEB targets to add 300MW from solar during the 12 th

plan period. Further, KSEB on its own proposes to establish SolarPhoto Voltaic on all Government Buildings/PSUs with the support ofthe Government, in addition to Solar PV installation at its buildings.KSEB is also exploring the possibility of installation of solar PV at itsreservoirs, open channels etc.

3.2.4 Thermal projects.There are various proposals to develop thermal projects using gas/LNG in the State. However, the proposals are yet to be firmed up.The details shall be submitted to the Honble Commission separately.

3.3 Transmission plan3.3.1 In order to enhance the power transmission capacity and to avoid

bottlenecks/congestions in power flow and to ensure powerevacuation from new generating stations/ import points, KSEBproposes to construct a number of new substations as well as to up-

grade existing substations. An abstract of the new substations andlines targeted to be completed during 12th Plan is given in Table-3.3below.

Table 3.3Expected transmission capacity addition under 12th plan period

Substations

220 kV substations 6 Nos

Up gradation of 110 kV substations to 220 kV 5 Nos


Up gradation of 66 kV substations to 110 kV 33 Nos


Up gradation of 33 kV substations to 66 kV 1 No.

33 kV Substations 44 Nos

Total 132 Nos.

Lines (ckt km)

220 kV Lines 365 km

110 kV Lines 1225 km

66 kV Lines 86 km

33 kV Lines 540 km

Total 2216km

3.4 Distribution plan3.4.1 To meet the increasing requirement of electricity, reduce distribution

losses and to improve the quality of power, the distributioninfrastructure needs to be strengthened. It is expected that 17 Lakh



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new service connections will be effected during the 12 th Plan period.14,825 km new 11 kV lines, 23,250 km LT lines and 18,093 Nosdistribution transformers will also be installed during this period.With this, it is expected that the HT: LT ratio will improve from theexisting figure of 1:5.27 to 1:4.44 by the end of 12th Plan period.

3.4.2 An abstract of various works targeted to be completed during the 12th

Plan is given in Table below.

Table-3.4. Details of the distribution works proposed during 12th plan periodName of Work 2012-13 2013-14 2014-15 2015-16 2016-17 Total

Service Connections (Nos) 400000 350000 350000 300000 300000 1700000

11 kV lines (km) 3325 3250 3000 2750 2500 14825

LT lines (km) 5000 5000 4500 4500 4250 23250

Distribution Transformers (Nos) 3843 3750 3750 3500 3250 18093

1-ph. to 3-p. conversion (km) 4405 4500 4500 4500 4500 22405

Re-conductoring HT (km) 659 750 850 1000 1000 4259

Re-conductoring LT (km) 5345 5500 5500 5000 5000 26345

LT Arial Bunched Conductors (km) 940 1000 1000 1500 1500 5940

HT Arial Bunched Conductors (km) 416 500 500 600 750 2766

Meter changing (Nos) 1030566 750000 700000 700000 650000 3830566

3.5 The details of the physical target of projects by KSEB in the 12th

plan period are given below.

Table 3.5 Summary of the capital works proposed during 12th

FY plan2012-13 2013-14 2014-15 2015-16 2016-17 Total

A. Generation- own hydel

CapacityAddition

MW 1.25 40 114.3 38.5 54 248.05

MU 3.21 201.25 290.14 83.3 163.96 741.86

B. Transmission

Substations (No.)

220kV

NEW 1 1 1 3 6

UPGN 1 3 1 5

110kV

NEW 5 10 8 6 3 32

UPGN 2 10 7 10 4 33

66kVNEW 3 6 3 12UPGN

33kV

NEW 12 16 10 3 3 44

UPGN

Lines ( Ckt-km)

220kV 60 0.5 91.5 31 181.5 364.5

110kV 155 300.55 298 321.5 150.2 1225.25

66kV 4.5 0 81.5 0 0 86

33kV 158.8 154 141.5 60.35 26.1 540.75

C. Distribution

No. of Service connections

400000 350000 350000 300000 300000 1700000

11 kV lines km

3325 3250 3000 2750 2500 14825

LT lines km

5000 5000 4500 4500 4250 23250



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Transformers (No.)

3843 3750 3750 3500 3250 18093

3.6 The abstract of the financial target proposed for the 12th year plan isdetailed below.

Table 3.6 Summary of the financial target proposed during 12th FY plan(Rs in crore)

Sector 2012-13 2013-14 2014-15 2015-16 2016-1712th

PlanTotal

Generation 375.62 372.87 613.71 1089.95 1294.85 3747.00

Transmission 305.00 293.00 300.00 315.00 325.00 1538.00

Distribution 710.00 851.58 740.00 550.00 500.00 3351.58

Others 6.50 4.00 4.70 5.15 5.60 25.95

Total 1397.12 1521.45 1658.41 1960.10 2125.45 8662.53

The capital investment program envisaged in the Generation sectorfor the years 2015-16 and 2016-17 also includes Rs 500.00 crore andRs 750.00 crore respectively towards the Gas based thermal projectsproposed at Brahmapuram.

3.7 Review of Capital Outlay for the year 2012-13 and proposal for theyear 2013-14

3.7.1 As against the capital outlay of Rs 1036.00crores for the year 2011-12, the actual capital investment was Rs 1019.14 crores, i.e., KSEB

was able to achieve 98.40% of the financial target proposed for theyear 2011-12.

3.7.2 The revised target of capital outlay for 2012-13 as well as proposedcapital outlay for 2013-14 is given below.

Table 3.7Revised Capital outlay for the year 2012-13 and proposed outlay for 2013-14

Particulars

Revised outlayfor 2012-13

Proposed outlayfor 2013-14

(Rs. Cr) (Rs. Cr)

Generation 273.60 372.87

Transmission 232.35 293.00

Distribution 607.30 851.58

Others 5.50 4.00

Total 1118.75 1521.45

3.7.3 Generation projects

(i) The summary of the capital outlay for Generation projects forthe year 2012-13 and 2013-14 is detailed below.



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Table 3.8Summary of the capital outlay for generation projects

Sl

NoParticulars

Revised for2012-13

Proposed for2013-14

(Rs. Cr) (Rs. Cr)

1 Ongoing projects 161.30 230.80

2 New schemes proposed 16.99 29.95

3 Completed Schemes 3.33 24.02

4 Capital nature of maintenance work at BDPP & KDPP 3.45 7.30

5 R&NM of existing hydro projects 5.25 16.10

6 Survey and Investigation, 1.42 2.00

7 Revamping of seismic network 1.50 2.00

8 Dam saftey works (DRIP) 10.00

9 R&D Civil works 2.05 1.20

10 Construction of Administrative Complexes 2.50 2.50

11 Mechanical Fabrication works 23.82 35.00

12 Wind power projects 2.00

Solar projects 8.00

13 Coal based power projects 25.00 1.00

14 Miscellaneous works 26.99 1.00

Total 273.60 372.87

The scheme wise details of the Capital investment program for theyear 2013-14 shall be submitted before the Honble Commission by

the end of January-2013.

3.7.4 Transmission:The revised physical target for the transmission works for the year2012-13 and the target for the year 2013-14 is detailed below.

Table 3.9Summary of the physical target of transmission works

ParticularsRevised target

for 2012-13Target for theyear 2013-14

Substations (Numbers)

220 kV 1 1

110 kV 5 10

66 kV 3 3

33 kV 7 5

Sub total 16 19

Lines (Ckt . Kilometers)

220 kV 113.17 26

110 kV 97.17 129.74

66 kV 2.53 0.30

33 kV 68.6 72.95

Sub total 281.47 228.99



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The scheme-wise details of transmission works proposed for the year2013-14 shall be submitted before the Honble Commission by the endof January-2013.

3.7.5 Distribution works: The details of the distribution works proposed forthe year 2013-14 is given in the Table below.

Table 3-10.

Summary of the distribution works proposed for the year 2013-14

Particulars Unit Normal

Workproposedthrough

consumer

contribution

RAPDRP

RGGVY

Otherfunde

d

Total

1New serviceconnection

Nos55384 266857 21831 5928

35000

0

2 11 kV line extension Km 2093 241 497 264 105 3250

3Distributiontransformer

Nos2558 718 365 6 108 4354

4 LT line extension km 1537 6502 47 1266 1017 10369

5Single phase to threephase conversion

km

3200 944 613 55 188 5000

6Faulty meterreplacement

Nos677785 10610 46171 15434

75000

0

The Board is in the process of finalization of the capital worksproposed for the year 2013-14. The financial outlay for the differentdistribution works proposed shall be submitted before the HonbleCommission separately by the end of January-2013.



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CHAPTER-4ENERGY SALE FORECAST

4.1 Review of the energy consumption of different categories ofconsumers

4.1.1 The details of the category wise energy sale forecast for the year2013-14 and the revised estimate for the year 2012-13 is explained inthis chapter. The energy sale forecast has been made based on the

past data, existing consumer strength, new service connectionsproposed during the ensuing year, increase in the consumption perconsumer, regional characteristics of consumers, seasonal variationsand change in consumer habits etc.

The category wise details of actual energy consumption during theperiod from 2005-06 to 2011-12 are given below.

Table 4-1Details of category wise energy consumption in MU

Category 2005-06 2006-07 2007-082008-09 2009-10 2010-11 2011-12

LT Category Domestic 4668.35 5213.15 5602.85 5931.27 6559.00 6877.83 7705.86

Commercial 1092.66 1245.80 1378.33 1501.60 1793.00 1951.74 2141.22

Industrial 873.90 933.93 984.18 1015.40 1064.00 1053.45 1097.04

Agricultural 189.57 220.24 230.55 225.22 257.00 231.56 286.18

Street Lights 207.78 228.74 248.56 294.32 303.00 265.68 294.26

Sub total LT 7032.27 7841.86 8444.47 8967.81 9976.00 10380.26 11524.56

HT category

HT I Industrial 1362.24 1436.35 1460.61 1326.26 1450.00 1516.01 1595.68

HT II Non Industrial NonCommercial 130.11 134.72 138.28 107.42 117.00 101.71 115.76

HT IIB 0.02 0.09 0.10 0.09 0.09 0.09 0.10

HTIII -Agriculture 9.54 9.36 9.23 8.76 8.00 8.00 8.11

HT IV- Commercial 377.87 431.10 506.79 578.77 693.00 756.21 866.62

EHT 66/110 KV 1003.74 1070.01 1024.49 965.67 1149.00 1181.12 1243.12

Railway Traction 57.94 72.16 109.26 142.07 165.00 156.39 154.49

Bulk Supply 296.06 335.35 356.62 317.47 413.00 448.11 472.09

Sub total HT 3237.51 3489.14 3605.38 3446.51 3995.09 4167.64 4455.97

Total 10269.77 11331.00 12049.85 12414.32 13971.09 14547.90 15980.53

4.1.2 The growth of energy consumption of different categories of

consumers during the period from 2005-06 to 2011-12 is detailedbelow.



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Table 4.2

Average growth rate of consumption of different categories of consumers

Category 2005-06 2006-07 2007-082008-09 2009-10 2010-11 2011-12

CompoundAnnual Growthrate (2005-06

to 2011-12)

LT Category

Domestic 9.50% 11.70% 7.50% 5.90% 10.58% 4.86% 12.04% 8.71%

Commercial 15.30% 14.00% 10.60% 8.90% 19.41% 8.85% 9.71% 11.87%

Industrial 11.60% 6.90% 5.40% 3.20% 4.79% -0.99% 4.14% 3.86%

Agricultural -0.60% 16.20% 4.70% -2.30% 14.11% -9.90% 23.59% 7.11%

Street Lights 13.70% 10.10% 8.70% 18.40% 2.95% -12.32% 10.76% 5.97%

Sub total LT 10.50% 11.50% 7.70% 6.20% 11.24% 4.05% 11.02% 8.61%

HT & EHT category 0.00%HT I Industrial 10.00% 5.40% 1.70% -9.20% 9.33% 4.55% 5.26% 2.67%

HT II Non Industrial NonCommercial -7.70% 3.50% 2.60% -22.30% 8.92% -13.07% 13.81% -1.93%

HTIII -Agriculture 1.50% -1.90% -1.40% -5.10% -8.68% 0.00% 1.37% -2.67%

HT IV- Commercial 11.60% 14.10% 17.60% 14.20% 19.74% 9.12% 14.60% 14.84%

EHT 66/110 KV -3.10% 6.60% -4.30% -5.70% 15.95% 2.79% 5.25% 3.63%

Railway Traction 32.90% 24.50% 51.40% 30.00% 16.14% -5.22% -1.21% 17.76%

Bulk Supply 40.00% 13.30% 6.30% -11.00% 30.09% 8.50% 5.35% 8.09%

Sub total HT 7.30% 7.80% 3.30% -4.40% 15.92% 4.32% 6.92% 5.47%

Total 9.40% 10.30% 6.30% 3.00% 12.54% 4.13% 9.85% 7.65%

4.1.3 The category wise number of consumers for the period from 2005-06to 2011-12 is detailed below.

Table 4.3Category wise details of consumer strength as on 31st March

Category 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

LT Category

Domestic 6545692 6880500 7137739 7481601 7790132 8092072 8324961

Commercial 1202468 1270932 1327978 1324934 1387345 1455790 1538786

Industrial 119021 122308 122449 119871 122325 127354 132051

Agricultural 423571 435673 440958 431745 437877 446460 455078

Street Lights 2325 2325 2325 2729 2927 3038 3160

Sub total LT 8293077 8711738 9031449 9360880 9740606 10124714 10454036

HT category

HT I Industrial 941 946 979 1052 1128 1230 1321

HT II Non Industrial NonCommercial 206 218 157 175 179 212 237

HT IIB 2 2 2 2 2 2 2

HTIII -Agriculture 50 47 47 48 48 50 55

HT IV- Commercial 755 867 1069 1248 1455 1678 1925

EHT 66/110 KV 34 35 35 37 38 40 40

Railway Traction 5 6 7 8 8 8 8

Bulk Supply 11 11 11 11 12 12 12

Sub total HT 2004 2132 2307 2581 2870 3232 3601Total 8295081 8713870 9033756 9363461 9743476 10127946 10457637



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4.1.4 Year wise details of connected load/ contract demand of differentcategory of consumers during the period from 2005-06 to 2011-12 aredetailed below.

Table 4.4

Category wise details of connected load/ contract demandCategory

Unit

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

LT Category

Domestic MW 6646.74 7014.07 7420.54 9521.74 9918.76 10497.71 11096.17

Commercial MW 1292.76 1397.55 1695.93 2299.48 2371.20 2480.90 2587.24

Industrial MW 1239.35 1284.95 1290.82 1425.26 1472.69 1516.56 1560.32

Agricultural MW 738.58 740.49 876.00 887.90 899.38 913.55 926.68

Street Lights MW 84.98 88.81 118.54 82.66 93.80 91.09 93.12

Sub total LT MW 10002.41 10525.87 11401.83 14217.04 14755.83 15499.81 16263.53

HT category

HT I Industrial MVA 424.13 426.03 424.79 448.81 472.85 511.20 465.38HT II Non IndustrialNon Commercial MVA 50.30 54.25 45.78 49.36 49.83 51.38 48.34

HT IIB MVA 0.27 0.27 0.27 0.27 0.27 0.27 0.23

HTIII -Agriculture MVA 12.15 12.02 11.98 12.53 12.53 12.87 10.64

HT IV- Commercial MVA 140.69 161.52 197.29 226.01 261.64 298.95 292.75

EHT 66/110 KV MVA 295.29 296.99 303.02 312.99 291.50 295.50 288.61

Railway Traction MVA 29.00 39.00 44.00 57.50 65.50 66.60 65.27

Bulk Supply MVA 63.04 64.19 68.19 71.61 98.01 98.48 83.67

Sub total HT MVA 1014.86 1054.27 1095.31 1179.08 1252.12 1335.25 1254.89

Total 11017.27 11580.14 12497.14 15396.12 16007.95 16835.06 17518.42

4.1.5 Average monthly consumption of different category of consumersduring the period from 2005-06 to 2011-12 is given below.

Table 4-5Consumption per consumer (Units per month)

Year

Domestic Commercial Industrial

(Units) (Units) (Units)

2005-06 59.43 75.72 611.86

2006-07 63.14 81.69 636.32

2007-08 65.41 86.49 669.792008-09 66.07 94.44 705.90

2009-10 70.16 107.70 724.85

2010-11 70.83 111.72 689.32

2011-12 77.14 115.96 692.31

4.2 Review of energy consumption for the year 2011-12

4.2.1 The category wise consumer strength and the quantum of energyconsumed during the year 2011-12 are shown in the table below.



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Table 4.6 Consumer profile as on 31-03-2012

Category

Consumer Strength(nos) Consumption (MU Revenue (Rs.Cr.)

Number of

consumers ason 31.3.2012 % of total

Total for

the year % of total

Total for

the year % of total

Domestic 8324961 79.61 7705.86 48.22 1531.84 28.03

LT Commercial 1538786 14.71 2141.22 13.40 1592.83 29.15

LT Industrial 132051 1.26 1097.04 6.86 461.39 8.44

LT Others 458238 4.38 580.44 3.63 94.63 1.73

HT&EHT& Bulk licensees 3600 0.03 4455.97 27.88 1784.02 32.65

Total 10457636 100.00 15980.53 100.00 5464.71 100.00

4.2.2 The comparison of energy consumption of different categories ofconsumers during the last year 2011-12 over the year 2010-11 is given

below.Table 4.7 Growth of consumption during 2011-12

Category2010-11 2011-12

% increase overprevious year

(MU) %

Domestic 6877.83 7705.86 12.04

Commercial 1951.74 2141.22 9.71

Industrial 1053.45 1097.04 4.14

Irrigation & Dewatering 231.56 286.18 23.59

Public Lighting 265.68 294.26 10.76

LT Total 10380.26 11524.56 11.02

HT I Industrial 1516.01 1595.68 5.26HT II Non Industrial Non 101.71 115.76 13.81

HT II B 0.09 0.1 11.11

HTIII -Agriculture 8.00 8.11 1.37

HT IV- Commercial 756.21 866.62 14.60

EHT 66/110 KV 1181.12 1243.12 5.25

Railway Traction 156.39 154.49 -1.21

Bulk supply 448.10 472.09 5.35

HT &EHT total 4167.63 4455.97 6.92

Grand Total 14547.89 15980.53 9.85

4.2.3 It is observed that, as against the sale growth of 4.13% for the year2010-11, the same during the year 2011-12 was 9.85%. The increase inenergy consumption was mainly due to the following factors.(i) There was no restriction on energy usage for the year 2011-12.(ii) The consumption per consumer has increased due to consumer

preferences through the use of latest electronic gadgets andhousehold electrical appliances.

4.3 Revised estimate of energy sale for the year 2012-13.4.3.1 In the ARR for the year 2012-13, KSEB has anticipated an increase in

energy consumption by 7.48% over the previous year 2011-12.

Accordingly KSEB has estimated the energy sale for the year 2012-13as 17139.62 MU without any regulation in power supply.



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4.3.2 However, while approving the ARR, Honble Commission hadapproved the energy sale for the year 2012-13 as 16386 MU.

4.3.3 But, the energy demand in the State has shown an excessive increaseduring the year 2012-13. A comparison of the month-wise energyconsumption of the LT categories and HT& EHT categories is detailed

below.Table 4.8

Month wise energy consumption of LT categories

Month2010-11 2011-12 2012-13

(MU) (MU) % of increase (MU) % of increase

Apr 870.06 975.39 12.11 1079.86 10.71

May 836.36 945.52 13.05 1018.58 7.73

June 795.77 920.50 15.67 992.91 7.87

July 840.48 879.99 4.70 966.71 9.85

August 841.91 924.33 9.79 1012.34 9.52

Sep 839.13 935.30 11.46 994.54 6.33

Total 5023.71 5581.03 11.09 6064.94 8.67

Table 4.9Month wise energy consumption of HT&EHT categories

Month

2010-11 2011-12 2012-13

MU MU % of increase MU % of increase

Apr 332.01 354.77 6.86 355.73 0.27

May 336.05 374.58 11.47 385.6 2.94

June 327.36 356.38 8.86 395.11 10.87

July 336.1 370.07 10.11 404.5 9.30

August 338.12 365.16 8.00 401.8 10.03

September 346.61 355.55 2.58 383.87 7.97

Total 2016.25 2176.51 7.95 2326.61 6.90

4.3.4 It may be noted that, as ordered by the Honble Commission, KSEBhad imposed restriction on energy usage during the months of Apriland May-2012 on all Industrial, commercial consumers at 90% of theprevious one year average consumption and the energy usage ofdomestic consumers at 300 units per month. The excess usage wascharged at Rs 10.00 per unit.

4.3.5 After analyzing the actual energy consumption during the period fromApril to September-2012, past data, existing consumer strength, new

service connections proposed during the ensuing year, increase in theconsumption per consumer, regional characteristics of consumers,seasonal variations and change in consumer habits, the revisedenergy demand for the year 2012-13 without any load shedding wasestimated and detailed in the table 4.10 below.

4.3.6 Further, Honble Commission based on the request of the Board hasordered to impose interalia the following major restrictions on energyusages in the State.

(i) All the HT&EHT consumers shall limit the energy usage at 75%of the previous one year average consumption. The excess



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usage above the restricted quota shall be levied with a penaltyequal to the per unit energy charge.

(ii) All the LT-II, LT-IV, LT-VI(A), LT-VI(B), LT-VI(C), LT-VII(A), LT-VII(B) and LT-VII(C) consumers shall limit the energy usages at

80% of the previous one year average consumption. The excessusage above the restricted quota shall be levied with a penaltyequal to the per unit energy charge.

(iii) The monthly usage of domestic consumers shall be limited to300 units and the excess usage may be levied with a penalty atthe per unit energy charges applicable to the respective slabs.

4.3.7 Though KSEB does not expect any substantial reduction in energyusage through the restrictions, the liability incurred for procuring thehigh cost power would be partly offset through the penalty imposedby the Honble Commission.

4.3.8 The revised estimate of the energy consumption for the year 2012-13is detailed below.

Table 4.10Revised estimate of energy consumption for the year 2012-13

Category

2011-12 2012-13

Actual(in MU)

As per ARRpetition (in MU)

Approved byKSERC(in MU)

Revised estimatewithout load

shedding(in MU)

Revisedestimate withload shedding

(in MU)

Domestic 7690.12 8224 8098.42 8486.49 8339.20

Commercial 2141.22 2364 2187 2371.06 2330.80

Industrial 1097.04 1194 1104 1152.71 1132.69

Agricultural 286.18 247 247 298.37 293.37

Street Lights 294.26 299 299 307.77 302.67

LT II 15.74 19 17.58 16 15.81

Total 11524.56 12347 11953 12632.40 12414.54

HT I 1595.68 1680 1554 1704.84 1675.34

HT II 115.76 130 119.88 128.83 126.63

HTIII 8.11 8.5 8 8.16 8.02

HT IV 866.62 980 907 941.85 923.73

EHT I+EHT III 360.49 405 375 423.28 423.28

EHT II 882.64 930 860 930.17 930.17

Railway Traction 154.49 160 148 163.23 163.23

Bulk 472.1 499 461 525.36 516.26

HTII B 0.1 0.12 0.12 0.01 0.01

HT&EHT Total 4455.99 4792.62 4433 4825.73 4766.67

Total 15980.55 17139.62 16386 17458.13 17181.21

4.4 Energy sale forecast for the year 2013-144.4.1 The energy sale of each category was estimated based on the past

data such as the number of consumers, consumption and alsoconsidering the actual growth rates on number of consumers andconsumption up to first half of the current year. The load forecast



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also takes into account the economic growth, regional characteristicsof consumers, seasonal variations, change in consumer habits,cumulative average growth rate during the previous years etc.

4.4.2 The unrestricted consumption for 2012-13 is taken into account for

estimating the energy consumption for the year 2013-14. Theunrestricted consumption for the year 2012-13 is estimated as17458.13 MU.

4.4.3 During the ensuing year, KSEB proposes to provide serviceconnections to 3.5 lakhs of new consumers. With the proposed newservice connections, the past growth of energy consumption and alsoconsidering the efforts on the energy conservation measures proposedto be initiated, the energy sale is forecast for the year 2013-14.

4.4.4 In addition to the sale to its own consumers, KSEB has been providingpower supply to other licensees at the BST approved by the HonbleCommission. The estimated energy consumption of the BulkConsumers for the year 2013-14 is detailed below.

Table 4-11Anticipated energy consumption of Bulk consumers for the year 2013-14

Name of licensee Energy consumption in MU

Cochin Port Trust 28.39

Cochin Special Economic Zone 55.45

Kanan Devan Hills Plantation Company (P) limited 46.81

Kinesco Power Utilities Private Limited 63.7

Military Engineering Services 55.94

Electricity Department, Pondicheri 43.99

Electricity Department, Karnataka 0.66

Rubber Park India Pvt. Ltd 27.63

Techno park 70.74

Thrissur Corporation 155.48

Total 548.79

4.4.5 Honble Commission vide the tariff order dated 25-11-2012 hasintroduced separate tariff for EHT-III (220 kV) consumers. M/s Cochin

Refineries limited is the only consumer now availing electricity atEHT 220 kV voltage. The consumption pattern of this consumer forthe year 2012-13 is detailed below.

Table 4-12Energy consumption of EHT-220 kV tariff

Month Consumption (MU)

Jul-12 5.44

Aug-12 5.58

Sep-12 6.15

Oct-12 4.74



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For estimating the energy consumption of EHT 220 kV category, theenergy consumption for the year 2013-14 is estimated at 68.00 MU.

4.4.6 With the approval of the Honble Commission, KSEB has introduced hour cyclic load shedding during morning and evening peak hours

since 27th September-2012 and this is likely to be continued till 31 stMay-2013. Further, Honble Commission has also introducedrestriction on energy usage during the period from 15-12-2012 to 31-05-2013. As submitted earlier, KSEB has estimated the reduction inenergy usage due to load shedding at 1.80 MU/day. As submittedearlier, KSEB does not expect considerable reduction in energy usagedue to the restriction, however the penalty imposed for excess usagewould partially offset the additional liability incurred for additionalpower purchase. The energy sale forecast for the months of April-2013 and May-2013 has been estimated after considering thereduction in energy usage due to load shedding. The summary ofenergy sale forecast for the year 2013-14 is detailed below.

Table 4-13Energy sale forecast for the year 2013-14

SlNo

CategoryWith out loadshedding

With load shedding during themonths of April & May-2013

(MU) (MU)

I LT category

1 Domestic 9128.99 9078.66

2 LT-II 2559.79 2545.68

3 LT-IV Industrial 1177.89 1171.39

4 LT-V Agriculture 298.69 297.04

5 LT VI Commercial 308.78 307.0812 Public Lighting 19.00 18.9

Sub total LT 13493.14 13418.75

II HT &EHT

1 HT-I Industrial 1756.63 1747.44

2 HT-II 130.29 129.57

3 HT-III 8.75 8.71

4 HT-IV 986.48 981.04

5 EHT-I+EHT-III 440.13 440.13

6 EHT-II 984.59 984.59

Railway Traction 166.44 166.44

III Bulk supply

1 Cochin Port Trust 28.59 28.392 Cochin Special Economic Zone 55.78 55.45

3 Tata Tea Ltd 47.06 46.81

4 KINESCO 64.03 63.7

5 MES 56.25 55.94

6 Electricity Dept, Pondicherry 44.2 43.99

7 Electricity Department, Karnataka 0.664 0.66

8 Rubber Park India Pvt. Ltd 27.78 27.63

9 Techno park 71.12 70.74

10 Thrissur Corporation 156.33 155.48

Bulk supply Total 551.80 548.79

HT &EHT &Bulk supply Total 5025.11 5006.71

NPG 3 3

Grand Total 18521.25 18428.46



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CHAPTER-5

REDUCTION OF AGGREGATE TECHNICAL ANDCOMMERCIAL LOSSES

5.1 Introduction5.1.1 KSEB has consistently been reducing the Transmission and

Distribution losses in the Kerala power system. Since the year 2001-02, KSEB has been able to reduce the T&D loss from 30.76% to15.11%. The details are given below.

Table 5.1Extent of reduction of T&D Losses

YearT&D Loss within

KSEB system (%)

Extent of reduction (%)

Yearly Cumulative2001-02 30.76

2002-03 29.08 1.68 1.68

2003-04 27.44 1.64 3.32

2004-05 24.95 2.49 5.81

2005-06 22.96 1.99 7.8

2006-07 21.47 1.49 9.29

2007-08 20.02 1.45 10.74

2008-09 18.83 1.19 11.93

2009-10 17.71 1.12 13.05

2010-11 16.09 1.62 14.67

2011-12 15.65 0.44 15.11

5.1.2 The total T&D losses of KSEB include the transmission losses in the

transmission system from 400KV to 33 kV and also the distributionlosses from 11 kV upto LT system. While approving the order onARR&ERC for the year 2012-13, Honble Commission has directedKSEB to study and report the transmission and distribution losses.The details of the loss study conducted by the field office arediscussed in the subsequent paragraphs.

5.1.3 By way of consistently reducing the T&D losses, KSEB was able tomake substantial savings on the cost of generation and powerpurchase since the year 2001-02. The details are given below.

Table 5.2



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Reduction in cost of Generation and Power Purchase due to T&D loss reduction

Year

T&D Losswithin KSEB

system

Extent of reduction(%) Total Energy

sales withinthe State

Savings inGeneration &

PowerPurchase

Savings inPower

purchasecost)*

Yearly Cumulative

(%) (%) (%) (MU) (MU) (Rs.Cr)

2001-02 30.76 8667.32

2002-03 29.08 1.68 1.68 8873.3 303.58 106.3

2003-04 27.44 1.64 3.32 8910.84 588.85 206.1

2004-05 24.95 2.49 5.81 9384.4 1049.24 367.2

2005-06 22.96 1.99 7.8 10269.8 1501.70 525.6

2006-07 21.47 1.49 9.29 11331 1935.94 677.6

2007-08 20.02 1.45 10.74 12049.85 2336.94 817.9

2008-09 18.83 1.19 11.93 12414.32 2635.18 922.3

2009-10 17.71 1.12 13.05 13971.09 3199.90 1120.0

2010-11 16.09 1.62 14.67 14547.9 3673.33 1285.6

2011-12 15.65 0.44 15.11 15980.53 4134.41 1447.0

@ average cost of power purchase @ Rs 3.50 per unit.

5.1.4 The total savings in cost of generation and power purchase by way ofT&D loss reduction alone for the year 2011-12 was Rs 1447.00 crore.KSEB is one of the few distribution utility in the country havingeffected 100% metering and also to reduce the total T&D loss level to

15.65%. KSEB has been taking continuous efforts to reduce the T&Dlosses further.

5.2 Estimation of Transmission and Distribution losses

5.2.1 Honble Commission vide the order dated 28th April-2012 has issueddirection to KSEB to study and report the voltage level losses as wellas technical and commercial separation of T&D losses. Board hasissued specific directions to the field offices and also to the ChiefEngineer (Corporate Planning) to study and report the Transmissionand Distribution losses. A brief report on the loss studies conducted

by the Board is submitted herewith.

5.2.2 Transmission losses

(i) The transmission loss studies were done by the System Studygroup under the Chief Engineer (Corporate Planning), using theMiPower software. The entire transmission system of KSEBfrom 440 kV to 33kV was modeled into the system.

(ii) The studies were conducted after considering the seasonalload flow variations during the year 2011-12. For this, the yearwas divided into three blocks viz. July-September 2011,

October 2011-December 2011 and January-March 2012. ThePeak demand profile for various months from July 2011 to



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March 2012 was considered for the studies. The morning andevening maximum demand for each month in the respectiveblocks were taken and maximum of the same was used foranalysis purpose. Since the morning peak demand from July-September 2011 appeared to be similar with respect to the

other morning demands, it was not considered for the studies.

(iii) The transmission losses were estimated for the following fivetypical load scenarios.

(a) Evening peak demand of 3337 MW on 19-03-2012(b) Evening peak demand of 3145 MW on 21-12-2011(c) Evening peak demand of 2925 MW on 26-09-2011(d) Morning peak demand of 2635 MW on 21-03-2012(e) Morning peak demand of 2472 MW as on 14-12-2011

(iv) The transmission losses at different voltage levels of the abovefive different load simulation studies are detailed below.

Case-1 Evening peak demand of 3337 MW on 19-03-2012

Transmission system

Total load flow out ofthe peak demand

through therespective voltage

arr 2013 14 final corrected

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