ORDER

OF THE

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

IN A SUO MOTO PROCEEDINGS

IN RE THE DISTRIBUTION OF SLDC - UI FUND AMONG THE

LICENSEES IN PROPORTION TO THE AMOUNT OF ENERGY REQUIRED BY THE LICENSEES FOR SELLING POWER TO

THEIR CONSUMERS AND OTHER LICENSEES OF THE COMMISSION DURING 2010-11

In Case No. SM-03/10-11

PRESENT: SRI PRASADRANJAN RAY, CHAIRPERSON SRI PURNENDU GUPTA, MEMBER SRIR.P.SAMADDAR,MEMBER

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Order of the West Bengal Electricity Regulatory Commission in regard to the distribution of SLDC - UI fund :(a-mong the licensees in proportion to the amount of energy required by the licensees for selling power to their consumers and other licensees of the Commission during 2010-11

Noting by Office or Advocate

Date Office notes, reports orders or proceedings with signature SI. No.

14.07.2010 ORDER 1.0 In terms of regulation 5.14.8 of the West Bengal

Electricity Regulatory Commission (Terms and

Conditions of Tariff) Regulations, 2007, as amended

(hereinafter referred to as the "Tariff Regulations") if at

the end of a financial year there is any amount in UI

account then 90% of such amount will be used for the following purposes:-

a) the annual amount required to operate State Load Despatch Centre (in short "SLDC") shall be

transferred as per the budget of SLDC duly approved by the Commission; and

b) the balance amount shall be distributed among the licensees in proportion to the amount of energy

required by the licensees for selling power to their consumers and licensees of the Commission.

2.0 SLDC has already submitted the audited Statement of Affairs of the SLDC-UI Fund as on 28.03.2010 along

with Receipt and Payment Account and Revenue Account for the period from 31.03.2009 to 28.03.2010. It transpires, from the Statement of Affairs as on

28.03.2010 that the pool balance standing as on 28.03.2010 amounts to Rs. 982573141.00 and Revenue Reserve as on 28.03.201 O amounts to Rs.

74619064.00. The Revenue Reserve represents the

interest earned on Fixed Deposits made out of UI Fund and thus is to be considered as a part of UI Pool. The

aggregate pool balance of SLDC-UI fund as on

28.03.2010 thus stands at Rs. 1057192205.00.

Order of the West Bengal Electricity Regulatory Commission in regard to the distribution of SLDC - UI fund ' arnonq the licensees in proportion to the amount of energy required by the licensees for selling power to their consumers and other licensees of the Commission during 2010-11

However, it is also observed from their Statement of

Affairs as on 28.03.2010 that the assets and liabilities

are represented in Current Assets, Current Liabilities, Accrued Interest on Fixed Deposits and Tax Deducted

at Sources. Therefore, the balance shown as pool

balance is not entirely represented by Fixed Deposits

and Cash at Bank as on 28.03.2010. The total Fixed

Deposits and Cash at Bank as on 28.03.2010 amounts

to Rs. 1044334458.00 and is available for utilisation

only to that extent. In terms of regulation 5.14.8, 90% of

such available amount will be used for the purpose

mentioned therein. The Commission decides not to use the entire 90% of the available amount but to keep

some more funds to meet the total of net expenditure of SLDC for the coming years.

3.0 The Commission has already approved the budget

showing total of net expenditure of SLDC for the year 2010-11 as Rs. 146802760.00 vide its order dated 14.07.2010 in Case No. OA-96/10-11.

4.0 Considering the facts and decision mentioned above,

the Commission decides to utilize Rs. 697 4 lakh out of the pool balance available with SLDC-UI Fund towards

meeting the annual amount required to operate SLDC for the year 2010-11 amounting to Rs. 1468 lakh and distribute the balance amount of Rs. 5506 lakh among

the licensees of this Commission, viz, West Bengal State Electricity Distribution Company Limited (in short

"WBSEDCL"), CESC Limited, Durgapur Project Limited (in short "DPL") and DPSC Limited in proportion to the

amount of energy required by the licensees for selling

power to their consumers and licensees of the Commission during 2010-11 as per energy balance of

2010-11. The position is given in the table below:

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. Order of the West Bengal Electricity Regulatory Commission in regard to the distribution of SLDC - UI fund :.Ca'mong the licensees in proportion to the amount of energy required by the licensees for selling power to their consumers and other licensees of the Commission during 2010-11

SI. Item Amount No. Rs.in lakh)

1 Pool Balance as on 31.03.2010 10571.92 2 Pool Balance to be utuilised as per this order 6974.00 3 Total of net expenditure of SLDC for 2010-11 1468.00

as approved by the Commission 4 Amount to be distributed among the licensees 5506.00

in terms of Regulation 5.14.8 (b) in proportion to the energy shown at SI. No. 5 below

5 Energy required by the licensees for selling power to their consumers and licensees as per enerav balance of 2010-11 a) WBSEDCL 24312.76 MU b) CESC Limited 9000.59 MU c) DPL 3886.80 MU d) DPSC Limited 1065.96 MU

6 Distributable amount among the licensees a) WBSEDCL 3498.00 b) CESC Limited 1295.00 c) DPL 559.00 d) DPSC Limited 154.00

5.0 West Bengal State Electricity Transmission Company

Limited is directed to distribute Rs. 5506 lakh among

the licensees as per SI. No. 6 of the table given above

within one month from the date of issue of this order

which is to be deposited in the Power Purchaser Fund

by the concerned licensees. Respective licensees are

directed to utilize the same to meet the power purchase

liability for the year 2010-11, in order to contain the

tariff hike in terms of regulation 4.24.8 of the Tariff

Regulations and to submit a compliance report along

with the application for Annual Performance Review for

the year 2010-11.

Sd/- Sd/- Sd/- (R.P. SAMADDAR) (PURNENDU GUPTA) (PRASADRANJAN RAY)

MEMBER MEMBER CHAIRPERSON

Dat;f.J~t~z.2010 r,:;·, ;I,~\, l;i! - .~~~ \:re ..,; Z\ ly -~ /..7: <s, ;. •

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