BUAUS

1

TPC-G Case No. 177 of 2011TPC- D case No. 179 of 2011Revised ARR for FY 2011-12

MYT Petition for FY 2012-13 to FY 2015-16 for TPC’s Generation & Distribution Business

MERC’s Public Hearing at Rang Sharda Auditorium 18th Feb, 2013

Rakshpal AbrolAuthorised Consumer Representative u/s 94 (3) of E.A.2003

Bhartiya Udhami Avam Upbhokta Sangh (BUAUS),Madhu Compound, 2nd Floor, 2nd Sonawala Cross Rd.,

Goregaon (East) , Mumbai - 4000063Mob: 98202 03154 Email: rakshpal.abrol@yahoo.co.in

18-Feb-2013

BUAUS

2

• The revised Petition in Case No 177 of 2011 for Truing up of APR for FY -2011-12 should be approved ONLY if it is not going to effect the MYT 2nd Control Period FY 2013-14 to 2015-16.

• TPC has not revised the Tariff for FY 2012-13 except for FAC chargeable, based on the new Formula.

• Transmission issue has already been finalised. These shall not be applicable more than they are applicable to TPC-D Consumers, out of total Transmission charges leviable.

• Besides TPC-D, these lines are also being used by RInfra, BEST, MSEDCL for their own Consumers – hence, while approving the APR of FY 2011-12, these expenses to be reduced.

• The PPA with TPC-G is valid for MYT Control Period of TPC-D as well for FY 2011-12 and needs to be approved.

18-Feb-2013

BUAUS

3

• Power Generation for MYT Control Period for 2013-14 & 2015-16 has been settled after Civil Appeal No. 3510 & 3511 of 2008 dt 9th May, 2010.

• TPC-D has signed the PPA with TPC-G on a Long Term basis for Period 2013-14 to 2015-16 on a price duly approved by MERC.

• Unit 6 Power to be shared by BEST 51% & TPC-D 49%

• PPA with BEST and TPC-D will continue as detailed in the Petition, for Power being generated from Hydro and Thermal Stations, i.e. 2020 MW.

• TPC-G are at liberty to change over methodology of using oil/gas or Coal (imported ) to reduce the cost of Generation, provided it is approved by the MPCB and MOEF.

18-Feb-2013

BUAUS

4

• Rule 50-A of Indian Electricity Rules, 1956, states that cables used for electric supply as A.C. are always Four Core having Three Conductors and One Neutral coming from C.S. S. or from mini poles. – The Input to C.S.S is from 11KV/22KV/33KV & no Neutral.

• State Government G.R. dt 3rd May, 1993 & Nov 1998, declaring the MMR as Non-Industrial Zone.

• Miscellaneous conditions applicable for supply to Consumers, as approved in the year 1998. under Electricity (Supply) Act, 1948 and Indian Electricity Rules, 1956

• Tariff Order dt 1st Dec, 1998 of TPC – allowing 20% power for Lighting the premises of the Consumers and balance for ‘Other Purposes’ prior of enactment of ERC Act, 1998 and prior to EA 2003

18-Feb-2013

BUAUS

5

• Enactment of Micro, Small & Medium Enterprises Development Act, 2006 w.e.f. 2nd Oct, 2006

• MERC (Electricity Supply Code & Other Conditions ) Regulations, 2005 dt 20th Jan, 2005 defines “Sanctioned Load” & “Contract Demand”– Regulation 6.1: Sanctioned Load agreement less than (50)

Kilowatt (67HP)/63 Kilo-Volt-Ampere shall not be required and the Application Form shall be accepted.

• Schedule of Charges Reg. 6.4 (c) are in contradiction approved as on 22nd Dec, 2006 & 28th Dec, 2012

18-Feb-2013

BUAUS

6

• This is the first time an Authorised Consumer Representative is being allowed to present his suggestions in such a Petition

• After the Supreme Court’s three Orders dt. 8th Jul, 2008 in Civil Appeals Nos. 2898 of 2006, & 4366, 3467 of 2006, and Order dt 11th Aug, 2010 in Civil Appeal Nos. 3101 of 2006, 3510 & 3511 of 2008 decided in May, 2009

• The PPA with TPC-G has been approved for Long Term basis of TPC-D till 2015-16 for the supply of electricity at fixed rate and said term cannot be altered under any circumstances, for the Consumers connected with TPC-D, except subject to FAC.

• The Commission had not permitted TPC to lay down their Distribution network in the Licensed Area from 3rd Jul, 2003 & also after order of ATE dt 22nd May, 2006 even after the approval of Schedule of Charges under Regulation 18 of MERC (Supply Code) Regulations, 2005 dt 22nd Dec, 2006.

.

18-Feb-2013

BUAUS

7

• Schedule of Charges approved as on 22nd Dec, 2006 have neither been amended nor changed after 8th Jul Order of S.C.

• TPC had the supply to the Consumers, Commercial and Non-Commercial based on the Tariff duly approved by State Govt. dt 1st Dec, 1998 till May 2004– On LT Lines up to 100 kVA and above 500 KVA 1 on HT Lines, to each

Consumer after laying down their Distribution system

– The Consumer sub-stations for above 1000 KVA for LT & for above 1000 KVA on HT Lines.

• TPC had been supplying electricity to premises of defined as Consumer on a “Four Wire system and Three Phase supply” as per the Rule-50-A of Electricity Rules, 1956

18-Feb-2013

BUAUS

8

• The Schedule of Charges are made applicable as Single Phase up to 5 KW and 10 KW.

• Building premises are allowed to have Four Core Wires for supply and Consumers are allowed to have Three Phase supply with One Neutral as per Rule-50-A of the 1956 Rules – which have NOT BEEN REPEALED.

• Schedule of Charges revised as on 28th Dec, 2012 also have not been rectified – and are based on the same 1956 Rules

• Consumers have been defined in Section 2(15) of EA 2003, as premises connected with electricity supply.

• Every Premises are provided Three Phase with One Neutral of Alternative Current and not Two Wire supply from the C.S.S. and Rule-50-A was inserted to supply without any N.O.C from Local Government of from State, to use Three Phase Supply.18-Feb-2013

BUAUS

9

• The Case No. 177 of 2011 pertains to ARR for FY 2011-12 of TPC-G and may be approved, assuming it is not going to effect the MYT 2nd Control Period 2012-13 and 2015-16.– TPC-G have been catering to the need of TPC-D, RInfra, BEST during FY

2011-12 and have to recover the cost from them.

• TPC-D Consumers will not be affected by this– TPC-D has already collected the cost in the Tariff for FY 2011-12 and

the current FY 2012-13 will end on 31st Mar, 2013.

• TPC-D have not demanded any hike of Tariff already approved and in truing up process, the same may passed as deemed fit.

18-Feb-2013

BUAUS

10

• TPC were permitted as on 1st Dec, 1998 based on approved Tariff Order to cater the need of Consumers as defined under erstwhile Indian Electricity Act, 1910.

• The Central Government amended Rule 50-A in 1987 and persons were allowed to have Three Phase Supply of 440 Volts with One Neutral to any premises having height above 15 Meters.

• The State Government declared the Mumbai Corporation, Thane Corporation and Mira Bhayander Municipal Council (MBMC) as Non-Industrial Zones on 3rd May, 1993.

• No Industries covered under Industries (Development & Regulation) Act, 1951 are permitted, except SSI, now called MSMEs

18-Feb-2013

BUAUS

11

• MSMEs are not termed as “Industries” - therefore Discoms like TPC are permitted to provide Electricity as Consumers

– Defined as Residential, Commercial/Industrial on LT Cables up to 150 KW Three Phase Connection to any premises and up to 1000 KVA to any premises. It was being carried out by installing CSS.

• The Commission did not discard the Tariff Duly approved by the State Govt on 1st Dec, 1998 but instead restrained TPC from laying down distribution cables in Mumbai Suburban areas from 3rd Jul, 2003.

• After the 22nd May, 2006 order of ATE, this business came to a standstill & TPC was not allowed to do any Retail business and was considered a “Bulk Supplier” to RINFRA and BEST

18-Feb-2013

BUAUS

12

• Even after the S.C Order dt 8th Jul, 2008, neither the Consumer, defined under Section 43 of EA 2003, was allowed to apply for connection as per Schedule of Charges, nor was TPC permitted to provide electricity, despite the approved Schedule of Charges

• TPC did not have any “Universal Supply Obligation” prior to 20th Aug, 2008

• The Commission had approved the Tariff Proposal prior to granting the USO to TPC in the year 2006, but had not allowed them to lay down the Distribution Cables in the Licensed Area even after the 20th Aug, 2008 Order.

• The Commission had allowed the TPC after 15th Oct, 2009 to accept Change Over Consumers from RInfra based on the Formula laid down, for Consumers having demand above 1 MVA as Open Access.

• It was approved as per a letter dt 6th Oct, 2009 and agreement reached for all Consumers, i.e below 1 MVA and above 1 MVA.

18-Feb-2013

BUAUS

13

• The Proposal of Schedule of Charges dt 28th Dec, 2012 VIOLATES Rule 50-A of Indian Electricity Rules, 1956

• Premises are allowed to have Three phase Supply, while Schedule of Charges do not Permit the same.

– Electricity is required any premises for lighting, cooking, heating, fans, mechanical use for mixer, grinder, geyser, refrigeration, water lifting, elevator Running computer, and many other equipment.

• MERC (SOP) Regulation, 2005 indicates that supply above 40 Ampere current shall be Three Phase.– It is not so in the Schedule of Charges approved either earlier nor in

the one dt 28th Dec, 2012 for all the three Discoms.

– SOP had indicated Sanctioned Load up to 150 KW, which is on LT cables.

– LT Consumer and HT Consumer have been Defined in Regulation. 18-Feb-2013

BUAUS

14

• Service Lines from the Sub-Station or connecting Poles provided to any premises are in Three Phase with One Neutral– Further divided in three groups to connect equipment being operated

on 230 Volts and Neutral in any premises, except Water Pumps & Elevators.

• The Schedule of Charges as approved are not workable as stated above.– A Distribution Licensee like TPC cannot fulfill the conditions laid down

in the said SoC being proposed by them and are incorrect.

• Premises are multistoried, and are provided Three Phase supply on LT cables only above 1000 KVA– They are subdivided again on Three Phase supply to individual sub-

premises as per planned & approved Certificate of Licensed Contractor .

18-Feb-2013

BUAUS

15

* This violates MERC’s own SOP• Consumers above 150 KW will be termed as HT Consumers, till further prior to issue

of new SOP and Electricity Supply Regulations• Commission has not yet issued any clarification regarding the Change Over / Shift over

Consumers• No amendment to Regulation 6.6 and 6.7 of MERC (Elect Supply) have been issued.• Consumers are confused and under heavy financial burden. They had paid the

Connection Charges, paid the Security Deposits. They have paid the cost of Cables under the Tariff duly approved of The Distribution Licensee.

Type of Supply Details Connection Charges

Single Phase Loads up to 5 KW Rs. 2,000

Loads above 5 KW and below 10 KW * Rs. 3,000

Three Phase Motive Power up to 20 KW Rs. 9,000

Motive Power above 20 KW and up to 50 KW Rs. 19,500

Motive Power above 50 KW and up to 100 KW Rs. 40,000

Motive Power above 100 KW and up to 150 KW Rs. 60,000

HT Supply For Loads up to 500 kVA Rs. 2,50,000

For loads above 500 kVA Rs. 3,00,000

18-Feb-2013

BUAUS

16

• The Distribution License of existing Licensee had expired on 15th Aug, 2011

• The Letter dt 6th Oct, 2009 lays down the Interim arrangement for Change Over of Consumer from one Discom to another

• This not only avoids wastage of Infrastructure but also allows the Consumer to use the Infrastructure for which he has paid through the TARIFF to his existing Discom.

• The interim arrangement also enables the Discom to meet its Obligation to supply by using Distribution system of other Licensee, on payment of Wheeling Charges. The Consumer also benefits as he has a choice of receiving retail supply from either of the two licensees.

• It was so decided that USO was cast upon TPC-D on 20th Aug, 2008 and they have been allowed to lay down their Distribution system.

18-Feb-2013

BUAUS

17

• The S.C. Order dt 11th Aug, 2010 in Civil Appeal No. 3101 of 2006 made it very clear that BSES (RInfra), in future, would not be allowed to recover the rebate, under any name, from any Consumers, if allowed between 1999 to 2004.

• Though the Commission had passed the order in the year 2006 to recover the said rebate from all the Consumers of RInfra, as rebate was granted to selected Consumers of RInfra and not Consumers of TPC-D or Change Over Consumers (after 15th Oct, 2009).– Change Over Consumers are not liable to pay any Cross Subsidy Charges after

the Change Over process. It would be a violation of the said S.C. Order– The Consumers have the right to change over from one Licensee to another

Licensee in the same Area even having demand less than 1000 KW

• The Commission has over looked both the Orders passed by S.C. in case No 72 of 2011.

18-Feb-2013

BUAUS

18

• Tariff applicable to Consumers Residential. Commercial and Industrial as per order

TPC FY-09 FY-10 FY-11 FY 12 FY-13

Res. 0-100 Units 1.70 1.30 1.05 1.05 1.38

100-300 Units 3.71 2.70 2.50 2.50 3.29

LT Industrial 4.11 4.10 4.50 4.50 5.92

LT- Commercial 4.96 3.85 4.25 4.25 5.59

18-Feb-2013

BUAUS

19

• All the existing Consumers having Elevators, Water Pumps Are termed as Residential Consumers and having Sanctioned Load up to 150 KW and not less than 20 KW for RInfra as well as of TPC.

• Commercial and Industrial Consumers having Connected Load up to 150 KW prior to 15th Jun, 2004 had paid the cost of Service Lines to RInfra. – TPC consumers have paid the Cost in the Tariff approved. They had paid the Commitment

Charges while receiving the supply. It was paid for 0-100KW for

– Consumers – Non Commercial and others .It was not adjusted in the Tariff.

• CT based Meters have not been replaced as the cost has already been collected while providing the installation and also other Meters. Cost of replacement of Meters has not been refunded.

• Bills are raised as below 20 KW for Industrial and Commercial as per the Tariff imposed and approved by the Commission. As per Tariff Order after June,2004 on wards.

• TPC never had such classification from 1st Dec, 1998. They had not been directed to do so after 3rd Jul, 2003 or after the issue of USO license on 20th Aug,2008.

18-Feb-2013

BUAUS

20

• No amendment has been made in TPC’s License or in TPC’s Tariff after 1st Dec, 1998 or after 3rd Jul, 2003. – Even after Interim Order in Case No 50 of 2009 to implement USO any

new tariff policy made applicable. The Change Over could not take place for many Categories listed in the Tariff Order applicable since 2009-10.

• Tariff now proposed by TPC-D for MYT Control Period

TPC FY 12-13 FY 13-14 FY 14-15 FY 15-16 Proposal (per unit)

Res. 0 to 100 Units Rs. 1.38 Rs. 2.60 Rs. 2.95 Rs. 3.50 Rs. 2.00

Res. 100 – 300 Units Rs.3.29 Rs. 4.80 Rs. 5.50 Rs. 6.05 Rs 3.50

Industrial Below 20 KW / 30 KW Rs. 4.50 Rs. 7.35 Rs. 8.00 Rs. 8.55 Rs.6.00

(Up to 150 KW)

Commercial Rs. 4.25 Rs. 7.25 Rs. 7.90 Rs 8.55 Rs. 6.00 (Up to 150 KW)

18-Feb-2013

BUAUS

21

Categories FY 12-13 FY 13-14 FY 14-15 FY 15-16 Proposal (per unit)

Industry above 20/30 KW above

Rs. 5.92 Rs. 7.35 Rs. 8.00 Rs. 8.55 Rs. 6.00

Advertisement Rs. 17.82 Rs. 16.60 Rs. 17.35 Rs.13..60 Rs. 16.00

Street Lights Rs. 5.26 Rs. 10.00 Rs. 10.80 Rs. 11.70 Rs. 6.00

Cremation & Burial Ground

Rs. 2.63 Rs. 3.50 Rs. 3.85 Rs. 4.20 Rs. 3.00

Temporary Religious Rs.2.63 Rs. 4.25 Rs. 4.90 Rs. 5.50 Rs. 4.00

Other Than Religious Rs. 14.47 Rs. 15.70 Rs. 17.10 Rs. 18.10 Rs. 15.00

HT Group Housing Rs. 5.39 Rs. 5.55 Rs. 6.10 Rs. 6.55 Rs. 6.00

HT-I Industry Rs. 6.58 Rs. 6.90 Rs. 7.40 Rs. 7.55

HT-II Commercial Rs. 6.84 Rs. 7.30 Rs. 7.70 Rs. 7.55

HT-Temporary Rs. 11.84 Rs. 12.60 Rs. 13.70 Rs. 14.80

HT-Railways 22/33 KV Rs. 6.51 Rs. 6.60 Rs. 7.44 Rs. 7.93

HT-100 KV Rs. 6.31 Rs. 6.60 Rs. 7.44 Rs. 7.95

HT-Air Port (New) Rs. 6.91 Rs. 7.44 Rs. 7.9518-Feb-2013

BUAUS

22

• In the last 9 years the Commission did not allow the TPC to lay down the Distribution Systems due to many unavoidable situation, out of which One is imposition of Electricity Duty on Consumption of Electricity under Bombay Electricity Act, 1958.– It was 12% and 13% on LF-1 & LF-2. TPC Tariff was Low?

– The Duty rates have been hiked from 12% to 15% on Residential Consumers Including BPL, 13% to 17% all Commercial Consumer.

– No duty has been hiked on Industrial Consumer from 9%

• New Industrial Units are not Permitted in the Licensed Area of TPC and RInfra.

• There is great demand from the people to have Uniform Tariff in Mumbai Licensed Area. The Commission is empowered to do so if the same is desirable and can create competition, as envisaged under EA 2003

• It is being proposed that Categories must be based on real as were applicable prior to the New Act, 2003 as Buildings are having more than 1000 KW Connected Load as on 10th Jun, 2003 under Electricity Rules, 1956, vide Rule 50-A ,the same may be maintained. – C.S.S. are established in the Buildings to cater the need of Consumer as defined under Section

2(15)18-Feb-2013

BUAUS

23

• As an Authorised Consumer Representative in this Case, I’d like to propose that:– Residential Consumer be allowed to have Three Phase supply for Lighting,

cooking, heating, mixer, grinder, washing machine, ACs, TVs, refrigerator, computers, etc. on LT up to a reasonable Sanctioned Load, say 150 KW.

– This would be 50 KW per phase and can be easily balanced – this will reduce the Distribution Loss also.

– The Commercial and Industrial as applicable prior under erstwhile Indian Electricity Act, 1910 on LT were up to 150 KW and the same may made applicable. The Electricity Duty is charged accordingly on consumption and there will not be any misuse as being felt by some utilities.

– Since many Residential Consumer are consuming electricity for heating, ironing, geyser, computes and other activities except Lighting is not correct Interpretation of Residential Consumer. Section 2 (15) must be taken into Account.

18-Feb-2013

BUAUS

24

• Electricity Consumers other than Residential are termed as Non-Domestic under Tax on Sale of Electricity, and Commercial under Bombay Electricity Act.– The State is collecting Tax @ 19 paisa per unit and 23 paisa per unit

E.D @ 15% & 17% & 9% .

– No Cross Subsidy is provided to Mumbaikars or others.

• While TPC are given rebate of Rs. 10,000 per year, others are given a Rebate Rs.75 per Consumers per year as Collection Charges to protect under Article 23(1) as known Under RTI Act, 2005.

Fixed Charges for Residential from Rs. 30 to 50 & for Three Phase Supply from Rs.100 to Rs. 150 per month.Fixed Charged LT Consumer like Commercial/Industrial upto 150Kw Rs 200/- per Month.

18-Feb-2013

BUAUS

25

Prayers be granted, as per submissions made and Petition be approved, after considering all points made

Raksh Pal AbrolBharatiya Udhami Avam Upbhokta Sangh

Madhu Compound, 2nd Floor, Second Sonawala Cross Road, Goregaon (E), Mumbai -400063

Mob. 9820203154rakshpal.abrol@yahoo.co.in

Authorised Consumer Representative for this Case only U/S 94 (3) of E.A.2003

Thank You

18-Feb-2013