order of west bengal electricity regulatory …wberc.gov.in/sites/default/files/wbsedcl...

ORDER

OF

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

FOR THE YEAR 2017 – 2018

IN

CASE NO: TP – 65 / 16 - 17

IN RE THE TARIFF APPLICATION OF THE WEST BENGAL STATE

ELECTRICITY DISTRIBUTION COMPANY LIMITED FOR THE

YEAR 2017 – 2018 COVERING FIFTH CONTROL PERIOD

UNDER SECTION 64(3)(a)

READ WITH SECTION 62(1) AND SECTION 62(3)

OF THE ELECTRICITY ACT, 2003

DATE: 04.07.2018

Tariff Order of WBSEDCL for the year 2017 – 2018

CHAPTER – 1

INTRODUCTION

West Bengal Electricity Regulatory Commission 2

1.1 The West Bengal Electricity Regulatory Commission (hereinafter referred to as

the “Commission”), a statutory body under the first proviso to section 82(1) of the

Electricity Act, 2003 (hereinafter referred to as the “Act”), has been authorized in

terms of the section 86 and section 62(1) of the Act to determine the tariff for a)

supply of electricity by a generating company to a distribution licensee, b)

transmission of electricity, c) wheeling of electricity and d) retail sale of electricity,

as the case may be, within the State of West Bengal.

1.2 The West Bengal State Electricity Distribution Company Limited (hereinafter

referred to as WBSEDCL), is deemed to be a licensee under the Electricity Act,

2003 in terms of fifth proviso to Section 14 of the Act wholly owned by the State

Government and is engaged in the business of distribution of electricity within the

area of supply of WBSEDCL in the State of West Bengal and the distribution tariff

of WBSEDCL shall be determined by the Commission.

1.3 West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2011 has come into effect from 29th April, 2011. The said Tariff

Regulations, 2011 was further amended by notifying the West Bengal Electricity

Regulatory Commission (Terms and Conditions of Tariff) (Amendment)

Regulations, 2012 in the extra ordinary edition of The Kolkata Gazette dated 27th

August, 2012 and West Bengal Electricity Regulatory Commission (Terms and

Conditions of Tariff) (Amendment) Regulations, 2013 in the extra ordinary edition

of The Kolkata Gazette dated 30th

1.4 In terms of definition contained in regulation 1.2.1 (xxx) of the West Bengal

Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,

2011, as amended from time to time (hereinafter referred to as the ‘Tariff

July, 2013.



Regulations’), each control period after third control period shall be normally for a

period of five ensuing years or such other period of number of ensuing years as

may be decided by the Commission from time to time. The Commission vide his

order dated 04.05.2016 in Case No. SM-13/16-17 decided that the fifth control

period shall also be consisting of three ensuing years for the period from 2017 –

2018 to 2019 – 2020. But, after careful consideration of all relevant factors, vide

its order dated 14.12.2016 in Case No. SM-15/16-17 decided that the fifth control

period shall be for one year and consist of 2017 – 2018 only and vide its order

dated 14.12.2016 in file no B-11/20 decided that the last date for filing of tariff

petition for the fifth control period shall be 31.12.2016. WBSEDCL accordingly

submitted the petition for determination of tariff for the fifth control period

consisting of the year 2017 - 2018 on 22nd

1.5 On scrutiny of the application, it was observed that some documents required as

per regulation 2.5.2 and some Forms as prescribed in the different annexures as

per regulation 2.7.2 of the Tariff Regulations, were not submitted along with the

tariff application. Accordingly, WBSEDCL was requested to submit all those

documents/forms vide Commission’s letter no. WBERC/TP-65/16-17/2171 dated

27

December, 2016

th January, 2017. In reply, WBSEDCL submitted the required documents /

forms vide their letter No. REG/SERC/MYT 5th Control Period/479 dated 8th

1.6 The tariff application submitted on 22.12.2016 along with the information / data,

documents, forms submitted on 08.02.2017 as per Tariff Regulations (collectively

called as “tariff application”), were admitted by the Commission in case No.TP-

65/16-17 and communicated to WBSEDCL vide letter dated 20.02.2017 with the

direction to publish the gist of their tariff application, as approved by the

Commission, in the news papers and also in their website as per provisions of

the Tariff Regulations. The gist was, accordingly, published simultaneously on

February, 2017.



24.02.2017 in the news papers - (i) ‘Business Line’ (English), (ii) ‘Ekdin’

(Bengali), (iii) ‘Dainik Statesman’ (Bengali) and (iv) ‘Jansatta’ (Hindi). The gist

along with the tariff application and additional information / data submitted vide

letter dated 08.02.2017 were also posted in the website of WBSEDCL. The

publication invited the attention of all interested parties, stake holders and the

members of the public to the application for determination of tariff of WBSEDCL

for the fifth control period and requested for submission of suggestions,

objections and comments, if any, on the tariff application to the Commission by

20.03.2017 at the latest. Opportunities were also afforded to all to inspect the

tariff application and to take copies thereof. It is noticed by the Commission that

the approved gist published in the news papers are not in consonance with the

with the stipulations contained in its letter dated 20.02.2017, nor does it satisfy

the requirement for publishing a notice containing a gist of the tariff application in

the daily newspapers “widely circulated in your area” as specified in regulation

2.7.3 of the Tariff Regulations. WBSEDCL was, therefore, directed to publish the

gist afresh in newspaper “widely circulated in your area” vide its letter dated

15.03.2017. WBSEDCL was directed to publish a notice extending the last date

of submission of objections / suggestions / comments against the tariff

application for the year 2017 – 2018 in those newspapers where the gist of the

tariff application was earlier published on 24.02.2017.

1.7 WBSEDCL accordingly published on 23.03.2017 a notice duly approved by the

Commission regarding extension of due date for submission of objections and

suggestions against the tariff application for the year 2017 – 2018 upto

27.03.2017. The notice regarding extension of date of submission was also

posted in the official website of WBSEDCL.

1.8 Objections to / comments on the aforementioned tariff petition of WBSEDCL for

the fifth control period were received by the Commission from the following



objectors within the stipulated time i.e., 27.03.2017 and the same have been

recorded in a summarized form in Chapter 3 of the instant order.

I. Rashmi Metaliks Limited,

II. Organization of Indian Engineering Industry,

III. Rohit Ferro-Tech Ltd,

IV. Ankit Metal and Power Limited,

V. Modern India Concast Limited,

VI. All Bengal Electricity Consumers’ Association (ABECA).

1.9 Commission, vide letter dated 28.03.2017 requested WBSEDCL to submit

additional clarifications in regard to sales forecast, power purchase, load-

generation balance and cost of outsourcing. In reply to Commission’s letter dated

28.03.2017, WBSEDCL submitted the required clarification, as asked for, vide

their letter dated 12.04.2017.

1.10 The Commission determines the tariff in accordance with the Electricity Act, 2003

and the Tariff Regulations framed thereunder and for this purpose, the

Commission has estimated the expenditure for 2016 – 2017 to arrive at the

estimated expenditure / cost under different heads for the years 2017 – 2018.

1.11 The estimation made for 2016 – 2017 by the Commission shall not be construed

by WBSEDCL as admission of at least such estimated amount in APR for 2016 –

2017. On the other hand, if in APR any deduction is made then as a conclusion

from such decision one shall not expect that the impact of such deduction is to be

continued in fifth control period as this will tantamount to imposing a penalty for

infinite nature or double penalty for the same inefficiency.


CHAPTER – 2

THE CASE OF WBSEDCL


2.1 The applicant WBSEDCL has submitted the application for determination of

Aggregate Revenue Requirement (ARR) and tariffs for the fifth control period

covering the year 2017 – 2018 under MYT framework in accordance with the

Tariff Regulations. The applicant has projected the ARR and the tariffs for 2017 –

2018 under the fifth control period and has prayed for allowing the same. The

applicant has also prayed for other dispensations which are mentioned in

subsequent paragraphs.

2.2 WBSEDCL has projected the ARR for the year 2017 – 2018 at Rs 1912327.00

lakh and the average cost of supply for 2017 – 2018 at 755.00 Paise / kWh. The

reasons for enhancement of tariff are stated as follows:

i) The Fuel Cost Adjustment (FCA), Monthly Fuel Cost Adjustment (MFCA)

and Monthly Variable Cost Adjustment (MVCA) payable to different

agencies for purchase of power has increased considerably.

ii) Due to increasing network, improved customer service facilities and price

index expenses towards Repair & Maintenance (R&M), outsourcing cost

due to maintenance and operation of new line and substations, spot

billing service, mobile maintenance service and zonal call centre, etc. has

increased.

iii) Increase of employee cost considering impact of 7th

iv) Probable enhancement of transmission charges payable to WBSETCL.

Pay Commission.

v) Increase in CTU charges due to implementation of Point of Connection

(POC) charge mechanism by CERC.



2.3 It is also submitted by the applicant that the Commission may consider rise in

price index and consumer base, rise in power purchase cost and operating cost

resulting in increased cost of business.

2.4 It is stated by the applicant that while determining the ARR for the year 2017 –

2018 under the fifth control period, all infrastructure investment and power

procurement plan have been made assuming that all consumers under

WBSEDCL area will continue with power supply from WBSEDCL.

2.5 WBSEDCL has claimed that with fast growing / expanding distribution network,

additional consumers are being added with WBSEDCL system during the last

few years. It is stated that based on trend of increase in number of consumers in

last five years, consumers’ strength of WBSEDCL has been projected for the

year 2017 – 2018. The consumption of different categories of consumers during

the year 2017 – 2018 stated to have been estimated as per CAGR of

consumption during the last four years of the respective category of consumers

in the following manner:

� For LT & HT (Domestic, Commercial, Public Bodies) and LT (Industrial,

Irrigation, Public Lighting), CAGR of consumption during the last four years.

� For Commercial Plantations, Construction Power and Others, the

consumption during 2015 – 2016 has been considered.

� 1% annual increase during the year 2018 in HT Industrial category has been

considered due to introduction of various incentives.

2.6 Total sale of energy to own consumers of WBSEDCL has been projected as

25327.00 MU in the year 2017 – 2018. Distribution loss has been projected on

the normative basis at a level of 17.50% for 2017 – 2018.



2.7 The applicant has also projected sale of energy to other licensees viz. CESC

Limited, Damodar Valley Corporation (DVC), The Durgapur Projects Limited

(DPL) and India Power Company Limited (formerly known as DPSC Limited)

(IPCL) during the year under the control period. The projection of sale of energy

to CESC Limited stated to have been made on the basis of drawal trend by

CESC Limited during the year 2016 – 2017 at a level of 10 MU for the year 2017

– 2018. The projection of sale of power to DVC has been projected to be 5 MU

during the year 2017 – 2018. The projection of sale of power to DPL as stated to

have been estimated at 20 MU for 2017 – 2018 as per drawal trend of DPL. The

sale of power to IPCL stated to have been estimated at 40 MU during the year

2017 – 2018 as per the drawal trend of IPCL during the year 2016 – 2017.

2.8 In terms of an agreement signed between the Govt. of West Bengal and Govt. of

Sikkim, the applicant has claimed that 20% of the sent out generation from

Rammam Hydel station Stage-II shall be supplied to Government of Sikkim

during the year 2017 – 2018. Accordingly, energy to be supplied to Government

of Sikkim has been estimated at 50 MU during the year 2017 – 2018.

2.9 WBSEDCL projected power purchase requirement based on the factor as

specified in 2.5 to 2.8 above and the cost of power purchase has been

considered based on the bill of respective generating stations during the month

of August, 2016 or the tariff petition/application where available or from the price

as projected by the generating companies.

2.10 WBSEDCL has submitted the projection of the energy balance that has been

arrived based on the estimated consumption, loss in distribution system of

WBSEDCL and loss in transmission system of WBSETCL at the normative level

as per Tariff Regulations. It is also submitted that the petitioner has to consider

the loss in central and state grid, as applicable.



2.11 Sale of incidental surplus energy to the persons other than consumers and

licensees during 2017 – 2018 has been estimated by the applicant to be at a

level of 7102 MU. In view of the present poor and unpredictable condition of

power market, the price for such power sale has been considered at pool rate of

power purchase of respective year. No projection has, however, been made by

WBSEDCL towards banking of power through swap arrangement for the year

under the control period. WBSEDCL may have to swap out power during real

time operation during the year 2017 – 2018.

2.12 WBSEDCL has two main hydel power stations situated at Rammam and

Jaldhaka. Based on same PLF as in 2015 – 2016 with auxiliary consumption, the

generations for the year 2017 – 2018 from Rammam hydel power station and

Jaldhaka Stage – I hydel power station has been projected as 251.46 MU and

136.62 MU respectively.

2.13 WBSEDCL also has a pumped storage project at Purulia. WBSEDCL submitted

that, the Purulia Pumped Storage Project (PPSP) provides spinning reserve and

utilized as and when required to meet the system demand. Annual gross

generation at a level of 1055 MU has been projected for the year 2017 – 2018

according to the system requirement and considering optimum utilization of the

surplus power during the off peak hours.

2.14 WBSEDCL stated to have 10 (ten) small / micro hydel generating stations and

the generation from those generating stations are projected as generation from

renewable sources of energy. While projecting the generation from those

generating stations, it is stated that the generation from all such generating

stations have been estimated based on previous trend. The generation from the

small / micro power stations has been projected at 141.63 MU for the year 2017

– 2018.



2.15 WBSEDCL is maintaining a diesel generating plant at Rudranagar in Sagar

Island which was earlier supplying power to the consumers at Sagar Island. The

load at Sagar Island is now being catered through grid. No generation has been

projected from the diesel generating station for the year under the control period.

2.16 WBSEDCL has installed grid connection solar PV plants (10 kW) each at 92

schools out of 100 Government and Government aided schools in different

districts in October, 2015. WBSEDCL has also commissioned 10 MW solar PV

project at Teesta canal bank in August, 2016. Some more solar PV projects are

in pipe line of either finalization or consideration for commission during the year

under control period. The annual generation from those new solar power stations

is project at a level of 75.250 MU considering 13% CuF.

2.17 WBSEDCL is continuing to purchase power from different agencies namely West

Bengal Power Development Corporation Ltd. (WBPDCL), The DPL, IPCL,

Damodar Valley Corporation (DVC), NTPC Ltd. (NTPC), NHPC Ltd (NHPC) and

PTC Ltd (PTC). It is also submitted that conventional power will also be

purchased directly from the new units of WBPDCL, NTPC, NHPC, DVC and

other generators and from electricity traders to meet the system demand of

WBSEDCL during the fifth control period. WBSEDCL will also purchase power

from different renewable and co-generation sources of energy during the ensuing

years under the fourth control period.

2.18 The planning of power purchase has been claimed by WBSEDCL to have been

done keeping in view the following aspects:

a) Estimated system demand for the ensuing years based on the projected load

growth.



b) Maximum generation that may be available from the hydel power stations of

WBSEDCL.

c) Commitment to meet the peak system demand.

d) Requirement of pumping energy for optimum utilization of PPSP to meet the

system demand.

e) Effort to keep spinning reserve as per regulation to meet emergency situation

while sudden break down of any unit occurs.

WBSEDCL has claimed that besides purchasing power through grid system, they

will also purchase some quantum of power in radial mode from DVC at Asansol,

Burdwan and other areas, from DPL (at 33 KV & 11 KV) in and around Durgapur

area and from DPSC (at 11 KV) at Asansol area, Govt. of Sikkim (at 11 KV) at

Rangpoo area and WBREDA (at 11 KV) at Frezerganj area for catering its own

consumers during the year under the fifth control period

2.19 It is stated by WBSEDCL that the net generation to be available from the existing

generating stations of WBPDCL have been computed based on the projection

received from WBPDCL. As per the projection of WBPDCL, the net energy to be

available from KTPS, BKTPS, BTPS, STPS, SgTPS (Units I & II) and SgTPS

(Units III & IV) is 5018.00 MU, 7164.00 MU, 1676.00 MU 3651.00 MU, 2409.00

MU and 3250 MU respectively.

2.20 As it is learnt by WBSEDCL that the COD of unit III of the SgTPS has been

achieved in July 2016 and COD of unit IV of SgTPS was expected in January

2017. The capacity charges and energy charges for all the existing generating

stations of WBPDCL for the year 2017 – 2018 have been estimated by

WBSEDCL considering the same as in August, 2016 including MFCA for the

respective generating station.



2.21 WBSEDCL has projected the purchase of power from DPL at 132 kV, 33 kV and

11 kV during the year 2017 – 2018 considering the trend of drawal by them from

DPL during 2016 – 2017 and the cost of such power purchase has been

estimated as per existing rate along with MVCA claimed by DPL in the month of

August, 2016.

2.22 The applicant has submitted that any revision of tariff in respect of WBPDCL,

DPL and IPCL for the year 2017 – 2018 by the Commission have an impact in

power purchase prices projected by WBSEDCL and that may be considered

while determining the power purchase cost of WBSEDCL for the year under the

fifth control period.

2.23 WBSEDCL has planned to purchase power also from NTPC Limited, NHPC

Limited and Damodar Valley Corporation (DVC) besides purchase of power from

WBPDCL, DPL, CESC Ltd and IPCL. WBSEDCL shall also purchase power

from other generating stations on commissioning of those generating stations

during the year 2017 – 2018 to meet their load growth. The price of power

purchase is considered as per tariff applicable to the respective generating

companies, wherever available or from the price as projected by the generating

companies. The applicant submitted to consider selling price as may be allowed

by the CERC in the tariff order of NTPC Ltd., NHPC Ltd, DVC and other

generators for the respective years while passing tariff orders in respect of

WBSEDCL for the year 2017 – 2018 if the tariff order in respect of those

agencies are issued before the tariff order for WBSEDCL are passed by the

Commission. The applicant also submitted that the proposed power purchase

price from all thermal power stations are exclusive of impact arising out of FCA or

MFCA or MVCA (in case of radial power) and any hike of power purchase cost

due to hike in FCA, MVCA and MFCA may be allowed to be claimed from

consumers and licensees through MVCA.



2.24 It is proposed that any hike in power purchase cost of WBSEDCL due to hike in

FCA, MVCA and MFCA of the generating stations be allowed to claim through

MVCA from the sale to own consumers and licensees in the State.

2.25 WBSEDCL has estimated own consumption at the offices and substations for the

year 2017 – 2018 at 52 MU. WBSEDCL have projected 3350 MU to be procured

through purchase of short term power generally in the months of April and March

in order to bridge the gap between supply of power and system demand which

usually occurs during those months. WBSEDCL submitted that in order to fulfill

the Solar and Non-Solar RPO, the projection of short term purchase has been

estimated at 138 MU and 266 MU respectively during the year 2017 – 2018.

WBSEDCL also stated that in the event of sale price of surplus power in the

power market becoming not cost effective, the surplus power is being banked

through swap management for utilization of this surplus power effectively to

contain the idle capacity charge as well as to maintain grid discipline. The actual

banking of power under swap arrangement will be considered during FPPCA

application for 2017 – 2018.

2.26 WBSEDCL has also projected purchase of power from different new

conventional and non-conventional power plants during the year 2017 – 2018. As

per projection, the power purchase from Dagachhu HEP and Assam Power

under new conventional power plant is 360 MU and 3.50 MU respectively.

Similarly, WBSEDCL plans to purchase solar power from SECI and VGF scheme

or other such schemes of Government of India to fulfil its RPO. WBSEDCL has

indicated its solar power requirement for RPO to the tune of 100 MW during the

year 2017 – 2018.

2.27 Considering the projected sent out generation from its own generating stations,

power purchase from different agencies and the projected sales, energy



consumption at own premises, WBSEDCL has projected the energy balance for

the year 2017 – 2018.

2.28 The applicant has projected Rs.1408931.00 lakh as power purchase cost for the

year 2017 – 2018. This power purchase cost includes the cost of purchase of

estimated quantum of infirm power from the units under stabilization.

2.29 WBSEDCL projected Rs. 66447.00 lakh for Central Transmission Utility (CTU)

charges for the year 2017 – 2018 for transmission of WBSEDCL’s share of

power from the central sector generating stations and other generators outside

the State through the transmission system of CTU. However, the charges paid to

the CTU in actual will be claimed in the APR for the respective year.

2.30 Transmission charges payable to WBSETCL for the energy required to be

transmitted by the petitioner through WBSETCL system has been projected as

Rs. 110606.00 lakh for the year 2017 – 2018. However, WBSEDCL has claimed

Rs. 2034.00 lakh as SLDC charges during the year 2017 – 2018. ERPC charges

for the year 2017 – 2018 have been projected at Rs. 385.00 lakh. The system

operation charges payable to POSOCO have been estimated by WBSEDCL at

Rs. 543.00 lakh for 2017 – 2018.

2.31 An amount of Rs. 151746.00 lakh has been estimated as employee-cost for the

year 2017 - 2018. It is submitted that due to demographic and geographic

considerations, WBSEDCL is to maintain minimum level of employees to provide

service to its consumers. In the backdrop of the growing consumer strength and

augmentation of the distribution infrastructure, WBSEDCL has planned to

augment its manpower strength during the year 2017 – 2018. The manpower

strength during the year 2017 – 2018 has been planned to be 16363.



2.32 15% hike has been considered in salary and allowances due to pay revision in

line with the 7th Pay Commission during the year 2017 – 2018 with a

retrospective effect from 1st January, 2016. The applicant has considered a D.A

hike @ 4% for 2017 – 2018. Moreover, increase in pay in respect of normal

increment of employee-cost has been considered @ 3% on the basic and grade

pay during the year 2017 – 2018. Other employee expenses are projected in

proportion to the manpower strength. WBSEDCL has further claimed that

terminal benefits are calculated based on the actuarial valuation of pension,

gratuity and leave encashment benefits. As per actuarial valuation made in 2016,

the projected pension and gratuity liability increased at a CAGR of 3.23%

assuming future salary inflation rate of 6% per annum. Hence, growth rate of

3.23% over the expenses for 2016 – 2017 has been considered to arrive at the

figures for 2017 – 2018. In order to accommodate impact of the 7th

2.33 The applicant has projected Operation and Maintenance (O&M) expenses

including Repair & Maintenance (R&M) cost for the year 2017 – 2018 at

Rs.135317.00 lakh, out of which, O&M expenses for generation is 6314.00 lakh

and for distribution function is 129003.00 lakh. WBSEDCL has claimed that

distribution assets and consumer strength of WBSEDCL are increasing rapidly

due to DDUGJY programme and other work such as R-APDRP, National

Cyclone Risk Mitigation Project, etc. at different parts of their operational area. In

order to deliver power with reasonable quality parameters and to reduce

instances of outages for the widely scattered large consumer base, the

expenditure of R & M works of WBSEDCL has been increased. The O&M

expenses during the year 2017 – 2018 have been estimated considering the

consumer growth and general inflation level.

Pay

Commission, an increase of 15% over the expenses in 2015 – 2016 has been

considered during 2016 – 2017.



2.33.1 Operation and Maintenance (O&M) expenses for generation: WBSEDCL

submitted that in order to arrive at the O&M expenses for generation hydro plants

for the year 2017 – 2018, they have considered increase of 3 year CAGR on the

O&M expenses for the years 2014 – 2015 to 2016 – 2017 approved by the

Commission based on per MW basis as per the Tariff Regulations. For O&M for

Solar, WBSEDCL has considered Rs. 7 lakh per MW with escalation of 5.72% as

per CERC Renewable Energy tariff order dated 30th March, 2016. WBSEDCL

has estimated Rs. 4943.00 lakh on account of O&M for Hydro and Rs. 398.00

lakh for Solar.

2.33.2 Repair and Maintenance (R&M) expenses for distribution function: WBSEDCL

submitted that repair and maintenance expenses are a part of the core

distribution activities which reflect the expenditure incurred in respect of

maintenance of the distribution assets. WBSEDCL also submitted that the ratio of

R&M expenses to the O&M expenses for distribution is considered to be equal to

the 2015 – 2016 level, adjusted by a year-on-year growth from the 2014 – 2015.

Additional expenses are considered on account of IT implementation.

Accordingly, the projected figure for R&M expenses for the year 2017 – 2018 is

32831.00 lakh.

2.33.3 Administrative and General (A&G) expenses for distribution function: WBSEDCL

submitted that A&G expenses are a part of the core distribution activities which

reflect the expenditure associated with the necessary administrative support to

be arranged in order to ensure execution of the electricity distribution activities in

a smooth and uninterrupted manner. WBSEDCL also submitted that A&G

expenses are projected at the CAGR from 2012 – 2013 to 2015 – 2016 (i.e.,

6.5%) over the value of 2015 – 2016.. Additional expenses are considered on

account of IT implementation. Accordingly, the projected figure for A&G

expenses for the year 2017 – 2018 is 18348.00 lakh.



2.33.4 WBSEDCL claimed an amount of Rs. 6123.00 lakh for 2017 – 2018 Rs. for

establishing and maintaining communication network set up for the complaint

management mechanism as per West Bengal Electricity Regulatory Commission

(Standard of Performance) Regulations, 2010 under the head Lease Rental.

2.33.5 WBSEDCL has claimed Rs. 351.00 lakh considering the present trend under the

head Complaint Management Mechanism to meet the expenses for – i) toll free

telephone for registering grievances at ZCC, ii) SMS charge for forwarding

grievance to Mobile Van, iii) rental charge for IVRS system, iv) separate

telephone facility at each customer care centre and v) antitheft toll free telephone

charges.

2.33.6 WBSEDCL has claimed Rs. 56790.00 lakh for the year 2017 – 2018 under the

fifth control period towards outsourcing cost.

2.33.7 WBSEDCL has claimed Rs. 1128.00 lakh towards insurance premium for the

year 2017 – 2018 considering an annual growth rate equal to the average of the

past 3-year and 4-year CAGR (i.e., 18%).

2.33.8 An amount of Rs. 14407.00 lakh has been estimated as expenses towards Rates

and Taxes. It is submitted that due to increase in number of consumers, the

number of office establishments, i.e., CCC, Divisional Manager Office have been

increased and the tax on the establishments has also been revised / increased

by civic bodies from time to time. The effect of such hike in rates and taxes has

been considered. The CAGR for rates and taxes was 37% during the year 2016 –

2017 over the year 2015 – 2016. Therefore, rates and taxes for 2017 – 2018 has

been increase at a CAGR of 37% over the year 2016 – 2017. It is further

submitted that Goods and Service Tax (GST) is likely to be implemented during

the year 2017 – 2018 as per the declaration of Government of India and hence

the proposed rate of GST on rates and taxes are not assessable at the moment.



Impact, if any, of GST on rates and taxes shall be claimed at actuals in APR

petition for the respective year.

2.34 The applicant has claimed Rs. 2500.00 lakh towards bad debt for the year 2017

– 2018 for waiver of LPSC of Water Resource Development Department

(WRDD). However, bad and doubtful debts will be considered on actual basis in

the APR of respective year.

2.35 The applicant has stated that the capitalization of expenses for employees cost,

interest, administrative and other expenditure under the construction activities

are made for the year 2017 – 2018 following the existing policy of WBSEDCL.

2.36 WBSEDCL has projected Rs. 49096.00 lakh towards interest on borrowed

capital, Rs. 30600.00 lakh towards repayment of 1st

2.37 WBSEDCL has projected Rs. 11500.00 lakh for the year 2017 – 2018 under the

head interest on security deposit payable to the consumers.

installment of pension trust

bond, Rs. 10404.00 lakh towards interest on Pension Bonds and Rs. 2420.00

lakh towards other finance charges for the year 2017 – 2018. The applicant has

provided the computations showing actual amounts of interest chargeable in

revenue accounts in the Form-C to Annexure – 1 in Volume – IIB of their petition.

2.38 Cost of depreciation of assets of WBSEDCL which will be in service during the

years 2017 – 2018 stated to have been computed following depreciation

schedule as per Annexure – A in the Tariff Regulations and projected at Rs.

69810.00 lakh. The details of the calculation of depreciation have been given in

the Form – B to Annexure – 1 in Volume – IIB of their petition.

2.39 WBSEDCL has not claimed any amount under the head advance against

depreciation for 2017 – 2018.



2.40 Regarding interest on working capital requirement, WBSEDCL has submitted

that, based on the directive of the Commission vide paragraph 8.11 of its tariff

order for 2008 – 2009, the average security deposit of permanent consumers

(excluding provision for security deposit) for the ensuing year 2017 – 2018 has

been considered for utilization as working capital for the respective year. The

gap, if any, between the normative working capital requirement and the average

security deposit, is required to be considered as working capital requirement for

the year and the interest thereon be claimed as per provisions of the Tariff

Regulations. WBSEDCL, however, has not claimed any amount as interest on

working capital during the year under the control period.

2.41 The applicant has not claimed any amount towards reserve for unforeseen

exigencies for the year 2017 – 2018 under the fifth control period. WBSEDCL

stated that Reserve for Unforeseen Exigencies will be considered if invested as

per direction of Commission in the APR of respective year.

2.42 The applicant has not considered any provision for net DSM charges payable for

the year 2017 – 2018. However, WBSEDCL prayed to consider DSM charges on

actual basis in the APR of respective year.

2.43 WBSEDCL has projected Rs. 201.00 lakh towards contingent expenses under

the head ‘other debits’ for the year 2017 – 2018. However, the expenses under

this head will be claimed at actuals in the APR of the respective year.

2.44 WBSEDCL has not considered any provision for special allocation for the year

2017 – 2018. However, special allocation will be considered on actual basis in

the APR of respective year.



2.45 WBSEDCL has estimated the provision for Minimum Alternative Tax (MAT) for

the years 2017 – 2018 considering MAT rate 21.3416% which is the effective tax

rate for 2015 – 2016.

2.46 WBSEDCL has projected the return on equity at Rs. 44700.00 lakh for the year

2017 – 2018 under the control period stated to be considered on pre-tax basis on

the permitted returns @ 16.5% on the average equity base as per the Tariff

Regulations. It is submitted that no new equity addition for the year 2017 – 2018

has been considered.

2.47 WBSEDCL has proposed to release the balance amount of Rs. 22140.00 lakh

against the payable arrear arisen out of tariff order dated 30.12.2011 for new

units of WBPDCL. WBSEDCL has also requested to release an amount of Rs.

30091.26 lakh against the balance payable FCA of WBPDCL for the year 2012 –

2013 as per the order of the Commission dated 11.12.2014 in respect of

WBPDCL. WBSEDCL has referred a letter no. 148-PO/O/VS/55-30/2016 dated

5th September, 2016 issued by the Government of West Bengal wherein a grant

of Rs. 191607.00 lakh equivalent to outstanding loan and interest was extended

to WBPDCL, which may be considered for adjustment against the APR & FCA of

WBPDCL for the years 2013 – 2014 to 2015 – 2016. WBSEDCL has claimed a

sum of Rs. 76483.00 lakh towards carrying cost on the amount claim amount of

APR and FPPCA for the year 2013 – 2014 onwards considering the interest rate

as per SBI PLR of 14.05% as on 1st

2.48 Total expenditure of Rs.2097241.00 lakh has been computed by the applicant

and after excluding the revenue earned from other income, from bulk supply and

supply to Sikkim, expenses attributable to export and taking into account the

benefits passed on to the consumers, interest credit on depreciation and taking

into account the part release of regulatory assets and carrying cost as proposed

April, 2016.



by them the annual revenue required from sale of energy to its consumers has

been estimated by the applicant at Rs. 1912327.00 lakh for 2017 – 2018.

2.49 With projected revenue requirement of Rs. 1912327.00 lakh from sale of

25327.00 MU of energy to its own consumers, the average cost of supply per unit

has been computed by the applicant at 755.00 paise / kWh for the year 2017 –

2018.

2.49.1 It is stated that CESC draws power occasionally from WBSEDCL to meet power

shortage when CESC fails to arrange such power from other sources. CESC was

asked to project their requirement of power during the year 2017 – 2018, but no

reply has been received from CESC. In such circumstances, the sale of power to

CESC has been estimated at 10 MU during the year 2017 – 2018. CESC has yet

to execute a fresh PPA with WBSEDCL for two part tariff. In view of above,

WBSEDCL proposed that CESC should intimate at least one/two month in

advance the demand for power from WBSEDCL and also proposed to supply

such scheduled power to CESC at single part tariff at an energy charge of Rs.

6.96 per kWh, average 33 KV industrial tariff under CESC area in 2016 – 2017.

However, for drawal of power more than the scheduled demand or sudden

requirement of power, WBSEDCL proposes 30% more than the above stated

energy charge of Rs. 6.96, i.e., Rs. 9.05 shall be payable by CESC.

2.49.2 WBSEDCL also proposed to sell power to DVC on single part tariff at a rate of

Rs. 6.96 per kWh and Rs. 9.05 per kWh following the methodology proposed for

consideration of sale rate for CESC, since no rate has been determined by the

Commission for sale to DVC by WBSEDCL. This is for the reason that no PPA

has been executed between WBSEDCL and DVC regarding two part tariff.

2.49.3 The applicant has also proposed to sale power to IPCL and DPL on single part

tariff basis at an energy rate of Rs. 5.40 per kWh and Rs. 4.63 per kWh



respectively with a further proposal of 30% higher tariff for the same reason as

that of CESC.

2.50 Changes proposed by WBSEDCL in their tariff for 2017 – 2018 are as follows.

(I) As a part of demand side management to encourage the 33 kV and 132

kV industrial consumers reduce their drawal of load in peak period and to

shift the load to off-peak period the following rebates shall be allowed:

a) a rebate equivalent to the difference of the following two will be

allowed,

i) Demand charge calculated as per regulation 4.3.6 of the

Tariff Regulations; and

ii) Demand charge computed based on the maximum

demand of normal \

b) Similarly for the above consumers keeping their maximum

demand during off-peak period within 150% of contract demand, a

rebate equivalent to the difference of the following two will also be

allowed:

period or maximum demand of peak

period or contract demand in case of off-peak period or

85% of contract demand whichever is higher, if those

industries keep their maximum demand during off-peak

period within 150% of contract demand.

i) Additional demand charge calculated as per regulation

4.7.2 of Tariff Regulations; and

ii) Demand charge computed .based on the methodology for

additional demand charge for the normal and peak period



will be as per regulation 4.7.2 of Tariff Regulations but

there will be no additional demand charge applicable for

off-peak period.

c) Similarly for the above consumers keeping their maximum

demand during off-peak period within 150% of contract demand, a

rebate equivalent to the difference of the following two will also be

allowed:

i) Load factor rebate computed as per the rates without

considering the additional kWh and KVA drawn during off-

peak period over contractual demand; and

ii) Load factor rebate computed as per the rate.

All the above rebates are effective from the month of April, 2017 subject

to the condition that payment is made within the due date.

(II) Treatment of Life line category consumers:

It has been observed that some of the domestic consumers of WBSEDCL

(with contract demand not more than 0.3 KW) consume more than 75

units during some quarters and consume less than 75 units for other

quarters. Accordingly whenever such a domestic consumer consumes

less than 75 units in a quarter, such consumer is billed at the tariff of Life

Line Consumer for that particular quarter. For other quarters wherein the

consumption of the domestic consumer exceeds 75 units, the consumer

is billed at the tariff of Domestic (Urban) or Domestic (Rural) category as

the case may be.



WBSEDCL submits that the Commission has created such a provision of

Life Line Consumers in order to make electricity affordable to those poor,

consumers who don’t have the capability to afford electricity at the normal

rates. In this respect, WBSEDCL submits that increased electricity

consumption by this domestic consumer beyond 75 units / quarter should

debar them for availing life line category tariff for increased consumption

in its house hold.

WBSEDCL appeals before the Commission to consider such consumers

as either domestic (rural) or domestic (urban) and not as Life line for the

future years if the quarterly consumption for such domestic consumer

(having CD < 0.3 kW) exceeds 75 units taking average of energy

consumption of last 12 months.

(III) Minimum Charge of various consumer categories:

WBSEDCL submits that Minimum charges on consumers will guarantee a

certain amount of Revenue for part-recovery of fixed charges for

WBSEDCL. WBSEDCL has PPAs with generators based on demand of

the consumers to keep power supply uninterrupted. Thus, WBSEDCL has

to pay fixed cost to the generators even without drawal of power from the

generators due to lesser system demand.

In view of the above, WBSEDCL proposes Minimum charge for various

categories of consumers with revision in Minimum charge for categories

as shown in the Form 3.7 of Annexure-3 of Volume-IV.

WBSEDCL submits that the proposed Minimum charges should be

applicable as per regulation 4.13 of notification no.48/WBERC dated

25.04.2011, the same is reproduced below for ready reference:



“Minimum Charge shall be applicable when the sum of energy

charge and fixed charge including rebate/surcharge (except

rebate for timely payment) is less than the minimum charge for the

billing period"

(IV)

WBSEDCL submits that it collects meter rent from its consumers for

meters installed by WBSEDCL at its cost. Meter Rent paid by consumers

was last revised by WBERC via tariff order of 2010-11 dated 30.12.2011,

WBSEDCL proposes revision in Meter Rent as shown in the Form 3.7 of

Annexure-3 of Volume-IV.

Meter Rent:

(V)

WBSEDCL submits that other charges are borne by consumers due to

Meter testing charge and Disconnection / re-connection of supply at

consumer premises. Such charges are collected from the consumer by

WBSEDCL if the activity is undertaken due to consumers fault and not

otherwise.

Such charges borne by the consumers were last revised by WBERC via

tariff order of 2010-11 dated 30.12.2011. WBSEDCL proposes revision of

these charges as the cost borne by WBSEDCL for such Meter testing and

Disconnection / reconnection of supply has gone up considerably since

2011-12.

Other charges - Meter testing and Disconnection / Re-connection

Charges:



The existing and proposed Meter testing charge and Dis-connection / re-

connection of supply charges is shown in the Form 3.7 of Annexure-3 of

Volume-IV

(VI) In the backdrop of reduced electricity consumption by the 33 kV and 132

kV industrial consumers of WBSEDCL, WBSEDCL proposed a scheme

for revenue enhancement through increased sale to 33 kV and 132 kV'

industrial consumers, the scheme is enclosed as Annexure 8 of Volume

5. The scheme may be continued till issuance of the tariff order for 2017-

18. Rates mentioned in this scheme may be considered for modification

for the year in accordance with the tariff order of 2017 – 2018.

(VII) Tariff for Military Engineering Services (MES) applicable for High and

Extra-high voltage has been proposed to be applicable for LV&MV

consumer (50 KVA and above but upto 125 KVA).

(VIII) Presently off-peak period means the time period from 11 pm to 6 am.

Considering demand position of WBSEDCL system, WBSEDCL proposes

to increase off-peak period for industrial consumers with supply of 33 kV

onwards as 11 pm to 8 am and normal period as 8 am to 5 pm for

consideration of Commission and shall be applicable after two months of

issue of tariff order.

(IX) The fixed charge/ demand charge in Rs/KVA/Month for consumers has

been proposed as shown in the Forms 3.2 & 3.3 of Annexure-3 of

Volume-IV. The demand charge shall be applicable to different categories

of consumers as per rates as shown in above tariff schedule on the basis

of recorded demand as specified in regulation 4.3.3 of the Tariff

Regulations subject to the conditions specified in the Tariff Regulations.



When a new consumer gets connected to the system, the computation of

fixed charge or demand charge for that month shall be made pro-rata for

the number of (

(X) All other terms & conditions of tariff have been proposed to remain

unaltered and are provided in the Annexure 3 of Volume IV of the

Application.

days of supply in that particular month.

(XI) Other terms and conditions are proposed to be remained unaltered.


CHAPTER - 3

OBJECTIONS AND SUGGESTIONS


3.1 Suggestions, objections and comments on the tariff application of WBSEDCL for

the fifth control period covering the year 2017 – 2018 have been received within

27.03.2017 i.e., the due date from the persons are mentioned in paragraph 1.10

of Chapter-1. The main points of the suggestions, objections and comments etc.

relevant to the instant tariff petition are summarized in the following paragraphs

in this chapter. The Commission’s views on the objections, comments etc. are

also recorded in this Chapter.

3.2 Modern India Con-Cast Limited have stated a number of issues which are

discussed below:

3.2.1 Operation and Maintenance Expenses: During 2015 – 2016, 2016 – 2017,

there is a large expansion of distribution network through implementation of

different Rural Projects related to distribution. Moreover there is large volume of

replacement of meters – namely from electro mechanical to hybrid / static etc.

and continuous replacement of meter involves a large increase in distribution

expenses. Since a large chunk of distribution system, commissioned under

various district project, and being almost new, maintenance expenses requires to

be reviewed and should not be allowed on normative basis. Otherwise it will not

be possible to arrest regular increase in tariff, while power purchase cost has

reached to an uncontrollable limit, particularly when market price of power is low.

The modality of fixing the normative value of O&M expenses in view of addition

of new assets requires to be reviewed. It often takes time to submit and issue of

order on APR.

The above point has been noted by the Commission and will be duly addressed

in the subsequent chapter.



3.2.2 Employee expenses: The pay commission report is yet to be submitted. Since

the tariff petition is for 2017-2018, any impact on implementation of pay

commission shall be recovered separately. The reason is due to high tariff of

WBSEDCL compared to the most of the other States in India. High ATC Loss

should not be compensated in any manner through the increase of tariff. In fact

pay structure of the employee as well as the Board of Directors should be based

on performance in line with MNC and not in line with Government of Public sector

undertaking.

The above points have been noted by the Commission and will be taken care of

in the relevant portion of the tariff order. However, the employee cost will be

admitted as per the provision of Tariff Regulations, subject to prudence check by

the Commission.

3.2.3 Pension Fund: Pension fund appears to be a welfare scheme of the licensee.

WBSEDCL is not a Govt. institution. All the employees are not in the same

pension scheme. Any cost on account of pension should be incurred by the

licensee out of its profit and the same should not be a pass through.

The Commission has dealt with the issue suitably in subsequent chapter.

3.2.4 Outsourcing expenses: Outsourcing expense should have a prudence check.

Cost of outsourcing is 67% of direct employee cost which should be reduced.

Such expenses are being checked prudently as per the Tariff Regulations at the

time of determination of APR for the respective year.

3.2.5 Interest on working capital: Since the Bank rate is decreasing, the principles of

considering the rate of interest on working capital should be changed & it should

be at actual subject to truing up through APR.



The rate of interest on working capital is being allowed by the Commission as per

the rate prevailing on 1st

3.2.6 Carrying costs: Normally any deficit in cash or working capital is managed

through grants/Govt. aid/borrowings from financial institution etc. Consumers

bear the burden of loan or borrowing from financial institution in terms of interest.

Allowing carrying cost in addition to interest burden will put extra burden to

consumers of all category. As such carrying cost should not be allowed, since

the licensee is a profit making utility, should absorb the carrying cost of its own.

April of the previous year for which the tariff order is

determined, subject to truing up through APR as per regulation 5.6.5 of the Tariff

Order.

The Commission has noted the contents.

3.2.7 Bad Debts: Consumers are already heavily burdened with high tariff. Any Bad

Debt should not be a pass through in the ARR. Any loss due to it should be

compensated by Govt. of West Bengal or adjusted with the regulatory Assets.

The Commission goes by the Tariff Regulations framed as per the Electricity Act,

2003 which only allows such amount of bad debts as actually has been written

off, subject to a ceiling of 0.5%.

3.2.8 Compensations paid by licensee: Compensation to outsiders, loss of obsolete

store materials, compensation of Power Trader should not be allowed, as the

same will be a reward to inefficiency.

The Commission does not allow the compensation amount as a pass through

element in tariff as per provisions of Tariff Regulations.



3.2.9 Report on Power for All (PFA):

(i) WBSEDCL submitted report on Power for All to Govt. of West Bengal in

consultation with M/s Deloitte India Ltd. As such all relevant data should

be in line with this.

The projections are generally being made in the Tariff petition in

accordance with the Tariff Regulations. However, the Commission has

taken a note of it.

(ii) As per report of Power For All (PFA), energy input requirement is 34118

MU against energy sale volume of 25993 MU with total peak demand

6152 MW. With the vast network (Transmission) strengthening, at higher

voltage, transmission loss should be reduced & impact of the same, may

require less input.

While computing the transmission loss, the Commission follows the

norms stipulated in the Tariff Regulations.

(iii) In line with PFA, Employee Cost – with escalation @ 10% YOY,

considering CPI, AG cost escalation @ 6% should be considered @ 1%

of GFA.

The Commission has noted the comment.

(iv) Depreciation for new assets should be considered as 5.28% in line with

PFA.

While computing depreciation in the tariff order, the Commission follows

the provisions as laid down in the Tariff Regulations.



3.2.10 Sale to other distribution licensees: As none of the other distribution licensee

has intimated WBSEDCL, their requirement, projection of sale to other Licensee

should be considered nil.

The Commission has noted the comment.

3.2.11 Power purchase cost: Power purchase cost should be computed based on

prevailing tariff, not based on tariff petition of ISG, POSOCO and CTU etc.

Requirement of Power as per PFA is 34118 MU. The average cost of power

purchase may be considered as 350 P/KWH less by 2% rebate. Accordingly

Power Purchase Cost for sale to consumers shall be Rs 11702 Cr.

The Commission does not find any valid logic in objector’s estimation of power

purchase cost for sale to consumers. The Commission determines power

purchase cost based on the provisions given in the Tariff Regulations and on its

decision felt to be the best.

3.2.12 Purchase of power from Renewable and co-generation sources: While

average power purchase cost is around Rs. 350 P/KWH, WBSEDCL is reluctant

to pay the cap price of Co-Gen power i.e. @ 334 P/KWH, thereby depriving this

green power producer & discouraging to inject the same in the grid. Tariff model,

built in the PPA for Co-gen power should be quashed & CERC model should be

implemented.

The above comments are related to RE Regulations and do not attract the Tariff

Regulations which is followed for preparation of tariff order. However,

Commission will give direction to the licensee to fulfill their RPO obligations.



3.2.13 Power purchase from WBPDCL:

(i) R&M work of BTPS 5th

(ii) Generation from KTPS first 3 units appears to be uncertain due to penal

action taken by Green Tribunal. Generation from other 3 units need to be

maximized.

unit has been done & it should supply regularly the

rated capacity as the investment cost is very high. The available

generation from other units of BTPS i.e. 4X60 MW should confirm to

around 55% considering Renovation and Modernization work.

(iii) However, the performance of WBPDCL appears not in order in spite of a

lot of investment under R&M Programme. There should be more penal

measure, unless the generator is able to achieve a good performance as

required by the system. It is to be kept in mind, that a good performance

in the matter of available generation will reduce the net power purchase

cost. As such any bad performance should be reflected in the pay

structure of the employee as well the Board of director.

The Commission noted the comments. While determining the power purchase

cost of WBSEDCL, the capacity charge payable by WBSEDCL for each

generating station of WBPDCL is being considered based on the reduced

projected Plant Availability Factor.

3.2.14 Sale of surplus Power:

(i) As per PFA, Energy availability during FY 18 is 37723 MU and surplus

will be 3605 MU. Again peak demand is 6152 MW, against availability of

7029 MW i.e. a surplus of 877 MW. Any surplus of power / energy may

be traded in the market. As per CERC report average realization of sale

through Traders is Rs. 411 P/KWH. As such Power purchase cost shall



be considered as Rs. 12940 Cr. After 2% rebate that may be availed as

per PPA if payment is made within due date.

The entire expenditure and income of the licensee for a particular year is

being checked prudently at the time determination of APR for the said

year. Therefore, the comments of the objector regarding trading of excess

power are being dealt at the time of APR determination. Regarding power

purchase cost, the view of the Commission is already given at paragraph

3.2.11 above.

(ii) Profits, if any, from sale to persons other than own consumers shall be

deducted from Gross ARR. However, if sale price / market price is less

than pool power purchase cost, some alternative means for assured

income may be invested, so that burden due to loss of revenue for sale at

low price may be avoided.

The Commission takes care of the comments as per the provisions of the

Tariff Regulations while determining tariff order/APR.

(iii) As there appears to be a surplus power, except some incidental

requirement, requirement of power purchase from market should not be

considered through.

The Commission noted the contents.

3.2.15 Alternative means to dispose surplus power instead of Banking of Power :

(i) Banking of Power may be avoided as it involves cost due to open access

charges & losses, interest cost of energy purchased. It is better that

surplus power may be sold through trader, allowing open access to the

interested buyer. A model may be built up as here under. Some high



value consumer, who may have a variable demand, who may be captive

generator also or who intend to be group captive owner may opt to buy

such surplus power through trader at some concessional rate, if open

access is allowed under this model.

(ii) Trader should have PPA with a person who may be consumer of the

licensee.

(iii) Interested buyer shall be allowed short term open access with a provision

for ABT complaint meter for energy accounting and power to be sold on

schedule basis.

(iv) Buyer should draw power over and above Contract Demand.

(v) If it is an additional power, over and above contract demand then there

shall be no Cross Subsidy Surcharge (CSS). Otherwise CSS will be

applicable along with additional surcharge.

(vi) Price should be fixed in between night off peak power and average price

of power in the Power market.

(vii) This will enable WBSEDCL –

� to avoid Open Access Charges & Loss due to sale to person other than

own consumers and Licensees,

� the demand for Open access approval for import by consumers from a

source other than the licensee concerned,

� additional revenue on account of wheeling charge and



� backing down may be avoided and full utilization of generation

capacity.

The objector has sought for certain change in Tariff Regulations. It may be put on

record that the Tariff Regulations were finalized through previous publication.

Having received suggestions, objections and comments the Commission in

exercise of its delegated legislative power duly considered the matter in details

and framed such regulations and the regulations were notified in the Kolkata

Gazette. In tariff determination proceedings once the regulations are framed by

the Commission, there is no scope to review or change such statutory norms in

tariff determination proceedings. Accordingly, the comments for change in the

Tariff Regulations are not considered. Thus, such issue will not be dealt in

subsequent chapter further.

3.2.16 Reduction of distribution loss:

(i) Distribution Transformer failure in the district varies in the range of 4% to

10%. It should be brought down.

(ii) Reduction in ATC loss level, in districts particularly Birbhum, Beharampur

and Malda needs special attention. However, Technical loss can be

improved through religious implementation of distribution project, i.e.

DDUGJY, IPDS, RAPADRP & RGGVY. A lot of investment around Rs.

9056 Cr, up to financial year 2018-19, is under process. Entire

investment is funded through grants.

(iii) WBSEDCL should take initiative religiously to improve distribution loss

through Condition Monitoring for preventive maintenance, Transformer

Transaction Management System, Feeder Length Reduction, Feeder

Segregation, Use of Amorptious core DTR installation, Re-conductoring,



Installation of AB cable etc. Further commercial Loss to be reduced a lot.

Consumption analysis is required at Field level to identify loss area.

The Commission has already taken various steps with the licensees in

different forum for reduction of AT&C / Distribution losses. However,

necessary directions are being given to the licensees for energy audit /

loss audit.

3.2.17 Regarding proposal for increase in Fixed Cost:

(i) Consumers are paying charges effectively under 3 part tariff scheme i.e.

Demand Charge or fixed charge, energy charge & MVCA. A lot of

irregularities may be found out, if consumption pattern is religiously

analyzed for each of the consumers. This is because, the connected load

(CD) / declared capacity, in a large number of cases will reflect that those

are, not appropriate and commensurate with their consumption volume. It

is the general experience that almost all categories of consumers have

declared their contract demand, not commensurate with their

consumption. Majority of household consumers have suppressed

contract demand, thereby licensees fixed cost recovery is not

commensurate with their drawal petition of the consumers. If each of the

consumers is put under scanning it will be found that there is no need to

increase the fixed cost. It is the inefficiency and lack of initiative of the

management to set right the issue, considering it to be difficult. Rather

they want to find an easy solution, for loss of revenue in this regard, by

increasing tariff in the form of fixed cost. Hon’ble Commission may quash

the demand in increase in fixed cost. Moreover, charges of fixed cost of

house hold have been increased within a short span. It should not be

further increased rather leakage in this area should be arrested.



The Commission has noted the contents and will give appropriate

directions to the licensee. However, the fixed charge / demand charge is

allowed as per provisions of the Tariff regulations.

(ii) Again some of the households have more than one meter which are

overlooked by the licensee. In turn the recovery of energy charge under

slab rate is low. A loss in this case, automatically put burden on energy

rate. Licensee should be directed to reduce loss under above cases.

The comments are noted.

(iii) As WBSEDCL have to off-take minimum drawal, even after backing down

of generation, in the event of low demand, subject to the technical limit of

the generating unit, minimum drawal of all consumers should be

guaranteed in terms of charges.


(iv) WBSEDCL has executed lot of PPA, considering a very optimistic

perspective planning. It was considered granted that there would be an

industrial revolution in West Bengal and a surge of demand.

Unfortunately, the revolution is yet to take place but the obligation of PPA

for drawal of power remain. This ill-considered planning of the then

management of WBSEDCL has not yet been highlighted. As such

consumer should not be burdened with increase in fixed cost to protect

the inefficiency.

The Commission has noted the comments. Commission will consider the

fixed cost of generating stations from which the power are being

purchased by WBSEDCL as per their PPA to the extent of sale of power



by WBSEDCL adjusted with normative T&D losses. Any incidental

surplus has been considered to be sold at average power purchase cost.

3.2.18 Regarding other Tariff Proposals:

(i) Reference to the report on Power for All, West Bengal. Table – 14, the

anticipated peak demand is 6152 MW while Peak availability including

Renewable is 7029 MW i.e. there may remain 877 MW surplus during

Peak Hours. Now WBSEDCL should rethink whether they would like to

sale surplus evening power at in the market depriving its own consumer

setting Peak hour tariff at high level. This is against natural justice. As

such to boost industrial sale, tariff for the peak hour of high valued

industrial consumer should be kept low at a reasonable level and to

compensate the loss of revenue tariff for normal period may be revised.


(ii) Any changes of existing rate / charges, terms and conditions as proposed

in the tariff petition shall not be allowed as the same shall be considered

through amendment of existing tariff regulation. The stake holders should

be given opportunity to put up their views/suggestions and objection.

The Commission has noted the comments.

(iii) There is a proposal for change TOD timing, through increase in off-peak

period, it does not indicates, how the loss of revenue due to increase in

off period will be compensated.

The Commission has not considered any change in TOD timing due to

non-submission of any loss benefit analysis by the licensee.



(iv) Any loss in revenue due to implementation of rebate scheme on

additional Load Factor rebate, Maximum demand charge for 33 KV/132

KV industrial consumers, or in multiple licensee area shall not be a pass

through.

The Commission noted the contents and shall be dealt with at the time of

preparation of tariff.

(v) The Commission has introduced a new scheme through the notification

dated 8.02.2017 whereby the difference of the price between DVC and

WBSEDCL has been kept at 50 paise. Presently the price of DVC stands

at Rs. 4.30 per unit for 132 KV DVC consumers whereas the price for

WBSEDCL is Rs. 6.10 per unit for its 132 KV consumers. Hence, the

rebates have to be increased for load enhancement so that the difference

between DVC and WBSEDCL is kept not more than 50 paise per unit.

The Commission has noted the contents. .

3.2.19 Whatever cost has been incurred in terns of FCA, MFCA or MVCA during FY 16-

17, shall be considered for ARR calculation. Implication of Tariff revision of

ISGS/CTU etc. should be taken in account through FPPCA.

Commission has noted the comment and specific direction will be given in the

tariff order in this regard as per provisions of the Tariff Regulation.

3.2.20 Over and above, M/s Modern India Con-Cast Limited have made some additional

important points to note.

i) WBSEDCL fails to comply direction of the Hon’ble Commission as they

have not implemented Energy audit in its organization. Some penal

measure is required in terms of tariff.



ii) Generation is PPSP for 2017-18 with PAF 98% has been considered in

the same level of 2015-16 i.e. 1055MU when PAF was 76.57%. It may

be noted that with PAF 90.78% generation was 1416 MU. As such

correction should made accordingly i.e. we can get around 400MU more

peak power from PPSP.

iii) WBSEDCL has not yet participated in UDAY scheme which is beneficial

to the Licensee and in turn consumer will also be benefitted.

iv) Cost of Backing down of generation and sale of surplus power in the

unregulated volatile market at an average rate of Rs 2.72 p/kWh indicates

poor and inefficient power purchase plan.

v) Increased R&M cost indicated poor maintenance plan and condition

monitoring.

vi) Any waiver of LPSC should not be a pass through a tariff.

vii) WBSEDCL may purchase power from market after having an exercise for

cost benefit analysis where there should be a net gain in the process.

viii) WBSEDCL realize Minimum Charges in terms of Fixed cost / Demand

charge. Though in the tariff petition, WBSEDCL, cleverly, has not given

any annexure of computation of fixed cost / Demand charge, the increase

in consumer base has largely increased. In the process of computation

for average billing rate (ABR), there should not any adjustment on

account of Rebate / Penalty etc. Average energy rate may be computed

after assured revenue income on account of Fixed cost / Demand charge.

Power purchase cost may also be computed without rebate / penalty.



ix) Format 1.10 does not contain the contracted capacity/installed capacity.

Moreover there is no information about hour of operation and Backing

down of generation. They same should be incorporated for having a clear

view of operation and power procurement planning efficiency.

x) Similarly the formats do contain any information of category wise total

consumer, contract demand and the demand met. The same should be

incorporated. This will enable to have a check on the fixed cost / demand

charge that should have been realized.

The Commission has taken note of the above comments and shall deal with the

same, wherever required as per the Tariff Regulations, in the subsequent

chapter.

3.3 M/s Ankit Metal & Power Limited, M/s Rohit Ferro-Tech Limited, Organization of

Indian Engineering Industry and Rashmi Metaliks Limited have submitted their

printed objections with same contents as that of Modern India Con-Cast Limited

against the tariff proposal of WBSEDCL for the year 2017 – 2018. Since the

objections submitted by the above four stakeholders are same with the

objections submitted by M/s Modern India Con-Cast Limited and that they are

already dealt with as above, the objections of above four stakeholders are not

dealt here separately.

3.4 All Bengal Electricity Consumers’ Association (ABECA) has made the following

suggestions:

3.4.1 ABECA commented that if the tariff proposal of the WBSEDCL is allowed then

there will be a further tariff hike of 65.68 paise per unit including MVCA of 23

paise per unit. Besides this tariff hike both the W.B.P.D.C.L. and W.B.S.E.D.C.L.

off and on enhances tariff on the plea of MVCA / MFCA etc. The entire system is

nothing but to enhance the tariff which will affect 1.50 Crores of Electrical



Consumers of West Bengal and there will be a further inflation in the state and

prices of all goods and services will be increased. Small traders, small scale

industrial units and cultivation in Agriculture will be badly affected and will

virtually close down their activity. This cannot be let loose.

3.4.2 In the gist of Tariff Proposal the W.B.S.E.D.C.L. said that the reasons of increase

of tariff are (i) increase of power purchase cost; (ii) Increase of Transmission

charges; (iii) Increase of employee cost; (iv) Increase of interest on loan; (v) O. &

M. expenses increase; (vi) Release of Regulatory asset etc. ABECA is to state

that the reasons stated in the gist of tariff for 2017-18 are not tenable. The

reasons are as follows:

3.4.2.1 Increase of power purchase cost:

It may be stated here that the W.B.S.E.D.C.L. purchase the power from the

W.B.P.D.C.L. The W.B.S.E.D.C.L. submitted the increased tariff for 2017-18 to

the commission and as per proposal they demanded the increase of average

cost of supply at 9.88 paise per unit.

ABECA already submitted the objection on the enhanced tariff proposal. The

W.B.E.R.C, has not yet allowed the enhanced proposal of the W.B.P.D.C.L.

Moreover W.B.S.E.D.C.L. and the W.B.P.D.C.L. are the Government enterprise.

Previously there was one company i.e. W.B.S.E.B. Then there would be one tariff

for W.B.S.E.B. But due to the evil affect of 2003 Electricity Act for the break up of

W.B.S.E.B. into three Government companies, viz. (i) Generation Company (ii)

Transmission Company and (iii) Distribution Company. The enhancement of tariff

of these three companies imposed a burden of severe tariff hike collectively on

the shoulder of the ultimate consumers and thereby brings an inflationary

situation in West Bengal and the production of Agriculture and Small Scale

Industry will be hampered and in addition to this there will become another



increase of unemployment in the state. Hence we strongly object the tariff hike

proposal of the W.B.S.E.D.C.L. for 2017-18.

In this context, the Commission likes to mention that at the time of preparation of

tariff order of any licensee, the Commission allows expenditure based on the

provisions of the Tariff Regulations and after prudence check of the proposed

expenditure.

3.4.2.2 Increase of Transmission charges – The reason stated herein above at para

3.3.2.1 above holds goods here also.

The Commission’s views remain same as that of paragraph 3.3.2.1 above.

3.4.2.3 Increase of Labour cost - The imposition of fixed charge and fixed cost in the

Tariff is projected on the higher side. Already 6% growth rate of estimated

Energy Sale to its own consumer of W.B.S.E.D.C.L. is allowed by the

commission in the tariff order dated 28-10-2016 for 2016-17 and considering this

inflated rate of Energy Sale the commission allowed the Aggregate Revenue

Requirement of Rs. 1829944.36 Lakh in 2016-17 which includes Labour Cost

also. Hence a mere annual increment of the employees. Nothing more

enhancement on this

The Commission in the direction to W.B.S.E.D.C.L. in the tariff order dated 28-

10-2016 at page 50 para 4.9 (i) directed a detail breakup showing total

expenditure and employee strength against each level of all categories of

employees including the whole time directors of the Board. If any function of

other companies also then the allocation of cost among the companies shall be

shown separately and distinctly against each level." The direction of the

commission is to be complied within 31st March 2017.

item for which the enhancement of tariff hike is not

reasonable.



From the direction of the Commission it is quite clear that the W.B.S.E.D.C.L. failed to provide the required information relating to employee cost. Hence the proposal of tariff hike on the plea of increase of employee cost is not tenable. As such we oppose the tariff hike of the W.B.S.E.D.C.L. for 2017-18.

The Commission has noted the comments and will be dealt with in subsequent

paragraphs

3.4.2.4 Increase in interest on Loan – In this respect it may be stated that the interest on

F.D. has reduced from 9% to 6% and interest on loan also has reduced from

14% to 10%. Moreover if any loan taken previously at a higher rate of interest,

now this can be switched off from higher rate to lower rate of interest loan. As

such the plea of higher rate of interest on loan for the tariff hike proposal for

2017-18 is not tenable. It is not reasonable ground. As such we oppose the tariff

hike proposal of the W.B.S.E.D.C.L. for 2017-18.

.


3.4.2.5 Release of Regulatory assets - The Commission has been releasing the amount

regularly. If in the past period tariff reduces 2 paise per unit and tariff did not

increase, then this plea cannot be a tenable logic for the enhancement of tariff

hike for 2017-18. As such we object the tariff hike proposal for 2017-18.


3.4.3 It appears from the tariff order of the WBERC dated 04-03-2015 for the year

2014-15 in respect ofW.B.S.E.D.C.L.at page 7 para 2.2 that the W.B.S.E.D.C.L.

was attempting to reduce the average cost of supply by about 2 paise per unit for

the year 2014-15 "Even after considering release of regulatory asset and special

appropriation having consequential affect of 26-44 paise per unit in the average



cost of supply for 2014-15. The reason for such reduction in average cost of

supply during 2014-15 are stated as follows:

i) Expected increase of internal efficiency of W.B.S.E.D.C.L. including in the

field of procurement of power supply to other licensees.

ii) Lower cost of generation for the power available from W.B.P.D.C.L.

It is further stated that such effort will continue for reduction of average cost of

supply for 2015-16 to 2016-17." Under the circumstances stated herein above

the increase of average cost of supply from 689.32 paise per unit in 2016-17 to

755.00 Paise per unit in 2017-18 is not reasonable and justified. As such we

strongly oppose the tariff hike proposal of the W.B.S.E.D.C.L. for 2017-18.


3.4.4 The W.B.E.R.C. in the tariff order dated 28-10-2016 in respect of tariff of the

W.B.S.E.D.C.L. for 2016-17 allowed the Revenue Recoverable amount of Rs.

1892795.51 Lakh for 2016-17 but in the tariff proposal for 2017-18 the

W.B.S.E.D.C.L. has claimed the Estimated Revenue at the proposed tariff of Rs.

20,97,241 Lakh which is Rs. 204445.50 Lakh more than the existing allowed

amount. We strongly oppose the claim of the W.B.S.E.D.C.L. on this head on the

grounds stated herein above in the foregoing paragraphs.


3.4.5 It appears from the tariff proposal of the W.B.S.E.D.C.L. for 2017-18 at page 11,

para 22 Table under the item of Normalize Return, the claim is Rs. 44700 Lakh

while on the same item head the learned commission allowed Rs. 37236.21 Lakh

in 2016-17. So this claim in 2017-18 on the same head increases to Rs. 7463.79

Lakh. This enhancement is not reasonable ground of tariff hike. It is not a



cost/expenditure. It is a kind of profit in the name of Return on Equity. Moreover

there is no impact of economic benefit to the consumers due to enhancement of

capital in the year under reference on the contrary the tariff will increase. Hence

the increased Return on Equity is not justified. We oppose this.

The Commission follows the provisions of the Tariff Regulations for determination

of tariff for any licensee. For WBSEDCL also, the provision of the Tariff

Regulations will be followed for computation of ROE.

3.4.6 On the Bad debt item Commission did not allow any amount in the year 2016-17

tariff of the W.B.S.E.D.C.L. But for the year 2017-18 the claim on the Bad debt is

Rs. 2,500 Lakh. This is not justified claim. This claim is not outside the reason of

tariff hike. This claim is not reasonable. The W.B.S.E.D.C.L. did not submit any

Court Litigation case for which they could not realize the approved tariff from the

consumer, the W.B.S.E.D.C.L. did not submit any document showing their steps

to realize the unrealized dues from the consumers. Accordingly, we are to say

that the claim of Bad debt at a flat rate taking advantage of a provision of the

terms and conditions of tariff Regulation 2011, the claim of Bad debt is not

justified and reasonable. As such we oppose the claim.


3.4.7 Under the head Depreciation the Learned Commission allowed Rs. 69042.00

Lakh in the year 2016-17 to the W.B.S.E.D.C.L. but in the tariff proposal the

W.B.S.E.D.C.L. has claimed Rs. 69,810.00 Lakh for the year 2017- 18 tariff

under the same head of Depreciation. This means the claim is Rs. 768 Lakh

more.

It is expected that the Depreciation will be either same or reduced. If the

Depreciation increases then there will be new installation in the company, the

benefit of it will go to the consumers in the form of reduced tariff and better



service. None of this is in favour W.B.S.E.D.C.L.'s consumers. The service

condition is bad and tariff is increasing. So the enhanced claim is not reasonable

and justified. So we strongly oppose this claim.

The Commission has noted the comments and shall follow the provisions as laid

down in the Tariff Regulations.

3.4.8 At para 4.25 of tariff order of the WBERC dated 28-10-2016 in respect of

W.B.S.E.D.C.L. for 2016-17 it is the direction of the commission to reduce the

cost of distribution Re. 1 per unit and reduction of technical loss for the cities 4%,

for unban 5% and for Rural 8%.

This indicates that the W.B.S.E.D.C.L. failed to meet the target. If it is achieved

then there will be no need of price hike.


3.4.9 While the tariff in West Bengal is much more than the other states of India and

while the other 4/5 states reduces the tariff 50% and N.T.P.C. reduces the tariff

so there is no justification of tariff hike. This should be reduced 50% if proper

scrutiny is made. Hence we oppose the tariff hike and demand 50% reduction of

tariff. The items on which the enhanced claim is proposed and the reason of

price hike and Revenue requirement for 2017-18 given in the gist of tariff are

quite different. So we strongly oppose the tariff hike proposal for 2017-18.

Further from the arguments stated here in the foregoing paragraphs it is quite

clear that there is no need of tariff hike of the W.B.S.E.D.C.L. for 2017-18. On the

contrary if the actual facts and figures is taken into consideration then the tariff

will be decreased. Hence we oppose the tariff hike proposal and the increased

Revenue Requirement proposal of the W.B.S.E.D.C.L. for the year 2017-18.



Commission observes that ABECA did not submit any supporting document

against their arguments. From CERC notification dated 25.01.2016 (in Petition

No 15/SM/2015), dated 31.08.2017 (in Petition No 11/SM/2017) and dated

21.06.2018 (in Petition No 4/SM/2018) it may be observed that the Average

Power Purchase Cost (APPC) at national level is Rs. 3.40 /kWh for 2015-16 &

2016-17, Rs. 3.48/kWh for 2017-18 and Rs. 3.53/kWh for 2018-19, which

indicates the nation-wide increase in cost of power.

Further from consultation paper published by CERC vides Ref No L-

1/236/2018/CERC dated 24.05.2018 it may be observed that the coal price itself

has increased by 81.83% during 2009-10 to 2016-17, along with increase in

transportation cost of coal. Increase in major components of coal cost is

reproduced below:

Year 2009-10 2016-17 Change

Base Price (ROM) Rs/Tonne 560.00 760.00 35.71%Taxes and Duties Rs/Tonne 202.31 664.71 218.67%Coal Cost Rs/Tonne 847.31 1540.71 81.83%Coal Transportation Rs/Tonne 512.82 818.80 59.67%Taxes & duties on transportation Rs/Tonne 44.24 194.58 339.83%

The consultation paper further reveals that, in addition to the cost of coal, fixed

costs in Transmission and distribution sectors has also increased throughout the

nation which has ultimately increased the average cost of supply by 31.56%.

Thus the submission of reduction of tariff by 50% seems to be arbitrary.

3.4.10 There is no open hearing system now in the WBERC while other State

Commissions provided for open hearing and from the inception of the

commission there was open hearing in West Bengal. If the open hearing is taken

at the time of tariff determination then many facts and figures will appear which

will reduce the unjustified claim of the licensees and the tariff will be reduced



instead of increased and the consumers' interest will be protected. We urge upon

the Commission to start again public hearing at the time of Tariff determination.

The Commission has meticulously followed the provisions of section 62 and

section 64 of the Electricity Act 2003 while determining the tariff in question. Of

these two, section 64 ibid contains the procedure of determination of tariff, and a

bare reading of section 64, along with its sub sections clearly shows that while

issuing a tariff order under section 64(3)(a) ibid, the Commission is required only

to consider all the suggestions and objections received from the consumers,

stake holders etc. but is not required to hear them. The Commission is of its

considered opinion that under the Electricity Act, 2003, the legislators have

deliberately excluded any scope of hearing while determining tariff in terms of

section 62 read with section 64 of the Act.

It is to be noted that hearing has been specifically required in case the

Commission decides to reject a tariff application in terms of section 64(3)(b) ibid,

if in the opinion of the Commission, the application under section 64(1) is not in

accordance with either the provisions of the Electricity Act,2003, or the Rules, or

the Regulations made thereunder, or the provisions of any other law for the time

being in force. In other words, the Commission, even though empowered to

reject a tariff application, can reject the same only after granting an opportunity of

being heard to the applicant licensee or the generating company. Therefore,

section 64(3)(b) ibid limits the scope of hearing only to cases of outright rejection

of a tariff application. On the issue of hearing, the provision of section 64(3)(a) is

in clear and sharp contrast to the provisions of section 64(3)(b). So much so, that

it leaves one with no doubt that the exclusion of the requirement of hearing from

section 64(3)(a) is a deliberate exclusion, the requirement of hearing being

substituted by the requirement of consideration of all suggestions and objections

received from the public.


CHAPTER – 4

SALES, ENERGY BALANCE & VARIABLE COST


4.1 West Bengal State Electricity Distribution Company Limited (WBSEDCL) has been

entrusted with the responsibility to supply electricity to different categories of

consumers scattered throughout the State. The projected sales to different

consumer categories have been considered based on the growth trend of such

consumer categories. WBSEDCL also sells energy to other distribution licensees

in the State as per PPA entered between them. Moreover, as per existing

agreement between Government of West Bengal and Government of Sikkim,

WBSEDCL will have to make 20% of the sent out generation of Rammam Hydel

Station Stage-II to Government of Sikkim at sent-out cost.

4.2 A small part of the energy requirement for distribution and supply in its licensed

area comes from the hydro power stations under the ownership of WBSEDCL

while the balance energy requirement is sourced by way of purchase. The energy

generation at the own generating station and ex-bus energy available from these

stations after deduction of auxiliary consumption as per norms have been

considered in this order.

4.3 WBSEDCL has projected the amount of power purchase from the sources from

whom they are drawing power as per existing agreements. WBSEDCL has also

projected purchase of power from WBPDCL, NTPC, DVC, other generating

companies and also through electricity traders to meet their demand during the

year 2017 – 2018 under the fifth control period. WBSEDCL has also projected

purchase of power from different non-conventional and co-generation sources

during the year 2017 – 2018 under the fifth control period to meet their Renewable

Power Obligation (RPO) for the year.



4.4 WBSEDCL has also proposed to sell the incidental surplus power available during

the off-peak and normal period after meeting the requirement of pumping energy of

PPSP or for banking of power through swap arrangement as per the real time

situation.

4.5 The energy requirement to supply consumers of WBSEDCL, supply to other

licensees including own consumption, estimation of energy amount from own

generation of WBSEDCL as well as estimation of purchase of energy, purchase

price and the amount from different sources are analyzed in the subsequent

paragraphs keeping in view the submissions of WBSEDCL, information from

different tariff orders, energy exchanges and relevant suggestions/ objections from

different stakeholders.

4.6 Energy sale to own consumers of WBSEDCL:

4.6.1 WBSEDCL submitted that the sale of energy to its own consumers is projected

based on the following conditions prevalent for different categories of

consumers:

a) For LT & HT Domestic, Commercial and Public bodies, and LT Industrial,

Irrigation and public lighting, CAGR of consumption during the last 4 years

of the respective categories has been considered.

b) For Commercial Plantations, Construction power and Others,

consumption in 2015 – 2016 has been considered for 2017 – 2018 as

such consumption is temporary in nature.

c) For HT Industrial, 1% increase over the consumption in 2015 – 2016, has

been projected considering various initiatives taken by WBSEDCL to

incentivize power consumption by HT Industries.



d) For Traction, sale during the year 2017 – 2018 has been projected

considering possible change in stand of Indian Railways from existing

mode of operation.

4.6.2 The Commission finds it suitable to analyze the sales projection submitted by

WBSEDCL for each consumer category on the basis of their growth trend as

well as detailed clarifications/ submissions made by WBSEDCL. While

projecting the sale for the base year and ensuing year, the CAGR from 2012-13

to 2015-16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to

2015-16 have been considered to analyze the trend of sale along with category

specific information submitted by WBSEDCL. The following basic

methodologies have been considered as a general rule for projection:

a) Where the growth rates as reflected from CAGRs show a non-linear trend,

the CAGR of the entire duration i.e., 2012-13 to 2015-16 has been

considered;

b) Where growth rates show a linear increasing or decreasing trend the CAGR

of 2013-14 to 2015-16 has been considered;

c) Where the licensee provides specific reasons for considering a different

growth rate, that has been considered with due prudence;

d) Where there is insufficient data due to new consumer category or sales

volume is more or less steady or the loads are temporary in nature, the sale

volume of 2015-16 has been considered.

4.6.2.1 LV & MV Categories:

i. Labour Line:(MU)

Category of Consumers

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)

Labour Line 24.740 19.44 10.19 2.87 2.00 2.00



From the sales volume of previous years, CAGR from 2012-13 to 2015-

16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to

2015-16 comes to -51%, -62% and -72%, which indicates a decreasing

rate. WBSEDCL has considered the projected sale for 2016-17 and

2017-18 as 2 MU in each year, which is 30% less than the sale value of

2015-16 considering conversion of single point connection to individual

domestic connections in some areas of WBSEDCL. Commission

considering the submission made by WBSEDCL, admits the sales

projected by WBSEDCL for 2016-17 and 2017-18 in this category.

ii. LT Life Line:

(MU)Category of Consumers


LT Life Line 420.606 423.24 426.00 428.18 432.00 436.00



2015-16 comes to 0.6%, 0.6% and 0.5%, which indicates, though there is

a growth in this category but at reducing rate. WBSEDCL submitted that

they have considered the growth rate rounded up to 1% and projected the

sale volume of 2016-17 and 2017-18 as 432 MU and 436 MU

respectively. Commission considering the increase in consumer numbers

and contractual demand in this category, as well as rural electrification

activities of WBSEDCL admits the sales projected by WBSEDCL for

2016-17 and 2017-18 in this category.



iii. LT Domestic (50 – 125 kVA):(MU)



LT Domestic (50 -125 KVA) 0.00 0.00 0.00 7.31 8.00 9.00

Sales in this category starts from 2015-16 and WBSEDCL has considered

10% growth in this category thus the projected sale of 2016-17 and 2017-

18 after rounding up to nearest integer comes to 8 MU and 9 MU

respectively. Commission admits the sales projected by WBSEDCL for


iv. LT Domestic (below 50 kVA):(MU)



LT Domestic (below 50 kVA) 6757.814 6947.44 8003.05 8665.89 9391.00 10173.00



2015-16 comes to 9%, 12% and 8%. However, WBSEDCL has projected

an annual growth rate of 8% in this category and the projected sale of

2016-17 and 2017-18 has been considered as 9391 MU and 10173 MU

respectively. Commission observed that this category comprises 95% of

LT Domestic sales, hence it is prudent to analyze the projection of this

category along with overall LT Domestic consumer’s sale. It is noted that

CAGR of overall LT Domestic sale during 2012-13 to 2015-16 as well as

the annual growth from 2014-15 to 2015-16 of overall LT Domestic sale is

8%. Thus, Commission admits the growth rate of 8% as considered by



WBSEDCL in this category and admits the sales projected by WBSEDCL

for 2016-17 and 2017-18 in this category.

v. LT Commercial (below 50 kVA):(MU)



LT Commercial (below 50 KVA) 1954.51 1874.08 2062.50 2089.97 2132.00 2175.00



2015-16 comes to 2%, 6% and 1%. WBSEDCL has considered the

projected sale of 2016-17 and 2017-18 as 2132 MU and 2175 MU

respectively with an annual growth of 2% rounded up to nearest integer in

this category. Commission observes that the trend of growth is not linear

and hence finds it suitable to consider the CAGR rate of entire previous

year i.e. 2% over the actual sales volume of 2015-16. Thus, Commission

admits the sales projected by WBSEDCL for 2016-17 and 2017-18 in this

category.

vi. LT Commercial (50 – 125 kVA):(MU)



LT (Commercial) (50-125 KVA) 95.60 117.49 128.47 131.93 144.00 158.00



2015-16 comes to 11%, 6% and 3% which indicates the recent trends of

growth as a deceleration slope in this category. WBSEDCL has



considered the projected sale of 2016-17 and 2017-18 as 144 MU and

158 MU respectively. WBSEDCL has considered 9% growth in this

category instead of 11% CAGR from 2012-13 to 2015-16 considering the

consumer numbers and connected load. . Commission observes that

though the CAGR trend show a steady decrease of growth rate in respect

of consumption, there is a growth in connected load by 10% during 2014-

15 to 2015-16, hence finds it suitable to admit the sales projected by

WBSEDCL for 2016-17 and 2017-18 in this category.

vii. LT Others (50 – 125 kVA):

(MU)

Category of Consumers 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)

LT Others (50 - 125 kVA) 10.50 32.43 46.84 39.79 44.00 48.00



2015-16 comes to 56%, 11% and -15% which indicates a high increase in

2013-14 followed by a moderate increase in 2014-15 but the sale is

reduced during 2015-16. WBSEDCL has projected the sale of 2016-17

and 2017-18 as 44 MU and 48 MU respectively considering the CAGR of

2012-13 to 2015-16 rounded up to nearest integer in this category.

Considering the non-linear pattern of growth Commission finds it suitable

to admit the sales projected by WBSEDCL for 2016-17 and 2017-18 in

this category based on CAGR of the entire period (i.e. 2012-13 to 2015-

16).



viii. Private Educational Institutions and Hospitals:(MU)



LT Private Educational Institutions andHospitals

0.00 0.43 0.57 0.93 0.93 0.93

WBSEDCL has considered the projected sale for 2016-17 and 2017-18 as

0.93 MU in each year which is same as in 2015-16 in this category.

Commission admits the same.

ix. LT Public Bodies:(MU)



LT Public Bodies 25.252 23.73 27.76 27.43 28.00 29.00



2015-16 comes to 3%, 8% and -1% in this category. WBSEDCL has

considered the projected sale of 2016-17 and 2017-18 as 28 MU and 29

MU respectively with CAGR from 2012-13 to 2015-16 of 3% rounded up

to nearest integer in this category. Commission observes that the CAGR

rate shows a non linear growth pattern, hence finds it suitable to consider

CAGR of entire period which is 3%. Accordingly, Commission admits the

sales projected by WBSEDCL for 2016-17 and 2017-18 in this category.

x. Common Services for Industrial Estate:(MU)



Common services for Industrial Estate 0.009 0.01



WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as

0.009 MU and 0.01 MU respectively in this category. Commission admits

the same.

xi. Commercial Plantation:(MU)



Commercial Plantation 0.000 1.60 1.94 1.66 2.00 2.00

Based on the sales volume of previous years, WBSEDCL has considered

the projected sale of 2016-17 and 2017-18 as 2 MU in each year which is

the actual consumption of 2015-16 rounded up to nearest integer in this

category. Commission admits the sales projected by WBSEDCL for 2016-

17 and 2017-18 in this category.

xii. Construction Power:(MU)



Construction Power 0.00 13.39 19.17 30.46 30.00 30.00

From the sales volume of previous years, CAGR from 2013-14 to 2015-16

and annual growth from 2014-15 to 2015-16 comes to 51% and 59%

respectively which indicates that sale in construction power has increased

significantly in 2015-16 than 2013-14 and 2014-15 in this category.


30 MU and 30 MU respectively which is same as the actual sale of 2015-

16 rounded to nearest integer in this category. Construction power being

difficult to project as well as considering high increase in 2015-16 in

respect to previous year Commission finds it prudent to keep the



projection same as in 2015-16 and admits the sales projected by


xiii. Emergency supply:(MU)



Emergency supply 0.000 0.02 0.01 0.10 0.06 0.06


0.06 MU in each year which is less than the actual consumption of 2015-

16 in this category. Commission considering the actual sale of 2015-16

admits the projected sales of WBSEDCL for 2016-17 and 2017-18 as 0.10

MU for each year.

xiv. Short Term supply:(MU)



Short term supply 0.000 33.99 42.60 35.64 36.00 36.00


36 MU in each year which is the actual consumption of 2015-16 rounded

up to the nearest integer in this category. Considering the nature of

consumers in this category, Commission admits the sales projected by


xv. Temporary:(MU)



Temporary 0.000 12.89 10.02 2.28 0.00 0.00



WBSEDCL did not project any sales in this category as they claim there is

no consumer. Commission admits the submission of WBSEDCL.

xvi. LT Industrial (below 50 kVA):(MU)


LT Industrial (below 50 kVA) 927.91 910.44 942.19 942.62 952.000 962.00



2015-16 comes to 0.5%, 2% and 0.05% respectively in this category.

WBSEDCL submitted that they have considered the CAGR of 2012-13 to

2015-16 rounded off to the nearest integer and accordingly consider a

growth rate of 1% in this category. Commission admits the sales projected

by WBSEDCL for 2016-17 and 2017-18 in this category.

xvii. LT Industrial (50 – 125 kVA):

(MU)


LT Industrial (50 -125 KVA) 280.561 290.50 317.19 335.49 356.000 377.00



2015-16 comes to 6%, 7% and 6% respectively in this category.

WBSEDCL has considered a growth of 6% on 2015-16 sale volume and


respectively in this category. Commission after carefully observing the



growth trends reflected in CAGR finds it suitable to admit the sales


xviii. LT Agriculture:(MU)



LT Agriculture 1245.438 1182.88 1491.99 1524.19 1631.00 1745.00



2015-16 comes to 7%, 14% and 2% respectively in this category.

WBSEDCL has considered a growth rate of 7% on 2015-16 sale volume

and projected sale of 2016-17 and 2017-18 as 1631 MU and 1745 MU

respectively in this category. Observing the growth trend as reflected from

CAGR show a non linear path, hence Commission finds it suitable to

consider the growth rate as per CAGR of entire 2012-13 to 2015-16 (i.e.

7%). Accordingly, Commission admits the sales projected by WBSEDCL


xix. LT Public Water Works:(MU)



LT Public Water Works 120.679 129.52 140.54 261.81 288.000 317.00



2015-16 comes to 29%, 42% and 86% respectively. WBSEDCL has




317 MU respectively with a moderate growth of 10% in this category. On

further analysis, Commission observes that the growth in contractual

demand load shows overall CAGR from 2012-13 to 2015-16 of 14% and

annual growth for 2014-15 to 2015-16 as 0.30% in this category. Thus,

the huge increase in sales in the category seems to reflect the impact of

earlier projects undertaken by Government. Commission thus admits the


xx. LT Street Lighting:(MU)



Street Lighting 175.990 177.27 187.45 235.74 259.000 285.00



2015-16 comes to 10%, 15% and 25% respectively. WBSEDCL has


285 MU respectively considering CAGR from 2012-13 to 2015-16 in this

category. Though the annual growth from 2014-15 to 2015-16 is 25%,

considering the initiative of LED intensified lighting schemes by the

Government to curb the peak demand, Commission finds it suitable to

consider CAGR rate of 10% and admits the sales projected by WBSEDCL


4.6.2.2 HV & EHV Categories:

i. HT Domestic:



HT Domestic 21.148 24.05 23.87 16.22 15.00 14.00





2015-16 comes to -8%, -18% and -32% respectively which indicates

reduction of sales in this category. WBSEDCL has considered the

projected sale of 2016-17 and 2017-18 as 15 MU and 14 MU respectively

considering reduction of -7% in this category, considering conversion of

single point connection to individual domestic connection. Commission

finds it suitable to admit the sales projected by WBSEDCL for 2016-17

and 2017-18 in this category.

ii. HT Commercial:(MU)



HT Commercial 810.40 821.93 893.59 893.06 822.00 851.00MES 102.00 105.00

Military Engineering Services (MES) has been considered as a separate

category since 2016-17, which was earlier a part of commercial category.

Hence for statistical analysis based on previous year’s sales, it is

considered to project the combined sales of HT commercial and MES for

the ensuing years and then segregate them. From the sales volume of

previous years, CAGR from 2012-13 to 2015-16, CAGR from 2013-14 to

2015-16 and annual growth from 2014-15 to 2015-16 comes to 3.29%,

4.24% and -0.06% respectively in this category. The combined sales of

HT commercial and MES have been projected by WBSEDCL for 2016-17

and 2017-18 as 924 MU and 956 MU respectively. Commission observes

that the growth rate as reflected from CAGR shows a non-linear growth

trend, thus considering the CAGR from 2012-13 to 2015-16 admits the

projected combined sales for 2016-17 and 2017-18 as 922 MU and 952



MU respectively. Commission admits the projected sales to MES during

2016-17 and 2017-18. Now after deducting the projected sales of MES of

102 MU and 105 MU the admitted sales of HT commercial for 2016-17

and 2017-18 are determined as 820 MU and 847 MU respectively.

iii. HT Public Utility:(MU)



HT Public Utility 104.17 136.56 149.83 150.10 170.00 192.00



2015-16 comes to 13%, 5% and 0.2% respectively. WBSEDCL has


192 MU respectively considering the CAGR from 2012-13 to 2015-16 in

this category. Commission observes that the growth rates reflected from

CAGRs show steady decreasing rates and there is hardly any increase

from 2014-15 to 2015-16. However, it is also observed that growth of

contractual demand has increased by 41% from 2014-15 to 2016-17

which indicates an increase in load in ensuing years. Thus, Commission

admits the sales projected by WBSEDCL for 2016-17 and 2017-18 in this

category.

iv. Sports Complex & Auditorium:

(MU)


Sports Complex & Auditorium 3.47 3.58 3.68 3.76 4.00 4.00




16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16

comes to 3%, 3% and 2% respectively in this category. WBSEDCL has

considered the projected sale of 2016-17 and 2017-18 as 4 MU in each

year as per the actual consumption of 2015-16 rounded upto the nearest

integer in this category. Commission observes that the sales volume is

around 4 MU during last couple of years, hence finds it suitable to admit

the sales projected by WBSEDCL for 2016-17 and 2017-18 in this

category.

v. Construction power:(MU)



Construction power 33.213 23.53 31.61 14.51 15.00 15.00



comes to -24%, -21% and -54% respectively in this category. WBSEDCL

has considered the projected sale of 2016-17 and 2017-18 as 15 MU in

each year which is the actual consumption of 2015-16 rounded upto the

nearest integer in this category. Commission observing the temporary

nature of the loads, admits the sales projected by WBSEDCL for 2016-17

and 2017-18 in this category.

vi. Private Educational Institutions:



Private EducationalInstitutions 23.40 25.50 32.70 32.81 37.00 41.00





comes to 12%, 13% and 0.34%. WBSEDCL has considered the projected

sale of 2016-17 and 2017-18 as 37 MU and 41 MU respectively

considering CAGR from 2012-13 to 2015-16 in this category. Commission

observes that the growth rates as reflected from CAGRs show a non-

linear trend, thus finds it suitable to consider growth rate as per CAGR of

2012-13 to 2015-16, hence admits the sales projected by WBSEDCL for


vii. Commercial Plantation:(MU)



Commercial Plantation 3.41 4.07 4.15 3.12 3.00 3.00

From the sales volume of previous years, it is observed that sales in this

category shows a positive growth till 2014-15, but in 2015-16 sale has

been reduced to such extent that it is even below the sales recorded in

2012-13. WBSEDCL has considered the projected sale of 2016-17 and

2017-18 as 3 MU in each year, which is the actual consumption of 2015-

16 rounded upto the nearest integer in this category. Commission admits

the sales projected by WBSEDCL for 2016-17 and 2017-18 in this

category.

viii. Common Services for Industrial Estate:



Common Servicesfor Industrial Estate 0.10 0.00 0.00 0.00 0.00 0.00



WBSEDCL did not project any sales in this category for 2016-17 and

2017-18. Commission admits the same.

ix. Emergency Supply:(MU)



Emergency Supply 1.08 1.49 1.19 3.38 3.00 3.00


3 MU and 3 MU respectively which is the actual consumption of 2015-16

rounded upto the nearest integer in this category. Commission

considering the temporary nature of the supply admits the sales projected

by WBSEDCL for 2016-17 and 2017-18 in this category.

x. Short Term supply:(MU)



Short Term supply 0.00 0.38 0.50 0.77 1.00 1.00


1 MU in each year which is the actual consumption of 2015-16 rounded

upto the nearest integer in this category. Commission admits the

projected sales by WBSEDCL for 2016-17 and 2017-18 in this category.

xi. HT Industrial:(MU)



HT Industrial 6055.27 5885.69 5895.09 5483.52 5538.00 5593.00





comes to -3%, -3% and -7% respectively which shows a decreasing trend

in this category. WBSEDCL has submitted that they have taken various

incentive schemes to HT industrial consumers and accordingly

considered 1% growth rate in this category and the projected sale of

2016-17 and 2017-18 as 5538 MU and 5593 MU respectively.

Commission considering the submissions of WBSEDCL admits the sales


xii. HT Community Irrigation:(MU)



HT Community Irrigation 0.06 0.22 0.00 0.00 0.00 0.00

WBSEDCL did not project any sales in this category for 2016-17 and

2017-18. Commission admits the same.

xiii. HT Public Water Works:(MU)



HT Public Water Works 145.52 158.83 182.04 184.74 200.00 217.00



comes to 8%, 8% and 1% respectively. WBSEDCL has considered the


respectively considering CAGR from 2012-13 to 2015-16 in this category.

Commission observes that the growth rates from CAGR shows marginal

growth during 2015-16, however it is also observed that the contractual



demand from 2014-15 to 2015-16 shows a growth of 18%, which indicates

increase in loads in the ensuing years. Hence Commission finds it suitable

to consider the CAGR of 2012-13 to 2015-16 and accordingly admits the


xiv. Cold Storage & Dairy:(MU)



Cold Storage & Dairy 347.98 379.74 383.09 378.57 389.00 400.00



comes to 3%, -0.15% and -1% respectively. WBSEDCL has considered

the projected sale of 2016-17 and 2017-18 as 389 MU and 400 MU

respectively considering CAGR from 2012-13 to 2015-16 in this category.

Commission considering the CAGR of 2012-13 to 2015-16 along with

development projected by WBSEDCL in this sector admits the projected

sales of 400 MU during 2017-18.

xv. Traction consumers:



Traction 945.25 969.19 1049.62 1062.02 1104.00 1104.00



comes to 4%, 5% and 1% respectively. WBSEDCL has considered the

projected sale of 2016-17 and 2017-18 as 1104 MU in each year

considering CAGR from 2012-13 to 2015-16 in this category. Commission

observes that growth rates as reflected from CAGRs show a non-linear



growth trend hence considers the CAGR from 2012-13 to 2015-16 and

admits the sales projected by WBSEDCL for 2016-17. However,

Commission considering the projection of WBSEDCL keeps the sale in

this category for 2017-18 at same level of 2016-17. Thus the Commission

admits 1104 MU as projected sales during 2017-18.

Commission based on the analysis in paragraphs 4.6.2.1 and 4.6.2.2

admits the projected sales to own consumers as 25324 MU against the

claim of 25328 MU by WBSEDCL. The category–wise admitted sales are

enclosed in Annexure-4A.

4.7 Energy sale to other Licensees:

4.7.1 WBSEDCL has submitted that projection of sale of power to CESC Limited,

DVC, IPCL (formerly known as DPSC Limited) and DPL has been made based

on the drawal trend of the licensees during the year 2016 – 2017 as no

projection for requirement of power has been received from CESC Limited,

IPCL and DPL. They further stated that DVC does not draw any power from

WBSEDCL other than exigencies, hence a nominal amount of sale to DVC has

been considered. It is also submitted that as per existing agreement between

Govt. of West Bengal and Govt. of Sikkim, WBSEDCL will have to make 20% of

the sent out generation of Ramman Hydel Station Stage – II to Govt. of Sikkim

at sent out cost of generation of the said Power Station.

4.7.2 Commission also observes from the records available that IPCL has already

initiated the process of purchase of 150 MW power on Medium-term basis using

DEEP portal.

4.7.3 In view of the above the Commission admits the sale of power to other

licensees by WBSEDCL considering notionally 1 MU for CESC, IPCL and DVC



each and sales projected by WBSEDCL for DPL and Sikkim. Hence, the

admitted sale of power to licensees and Sikkim is given below:

Sl. No.

Name of the Licensee

Proposed by WBSEDCL

(in MU)

Admitted by the Commission

(in MU)1 CESC Limited 10.00 1.002 DVC 05.00 1.003 IPCL at HV level 40.00 1.004 DPL 20.00 20.005 Sikkim Govt. 50.00 50.00

Total 125.00 73.00

4.8 Energy required for own consumption:

WBSEDCL for the years 2016-17 and 2017-18 has estimated 50 MU and 52 MU

respectively for consumptions at the offices and sub-stations of WBSEDCL.

Commission considering the trends of actual consumptions during the previous

years admits the same.

4.9 Power Purchase Requirement and Power Purchase Cost:

4.9.1 WBSEDCL submitted that to meet their total energy requirement inclusive of

pumping energy for PPSP they will be continuing to purchase power from

different power supply agencies namely West Bengal Power Development

Corporation Ltd (in short “WBPDCL”), NTPC Limited (in short “NTPC”), NHPC

Limited (in short “NHPC”), the Durgapur Projects Limited (in short “DPL”), IPCL

(formerly known as DPSC Limited), the Damodar Valley Corporation (in short

“DVC”), the PTC India Limited (in short “PTC”) as per existing PPAs and also

from the new units of WBPDCL, NTPC, NHPC, DVC and other generators and

from electricity traders in addition to their own generation. WBSEDCL further

submitted that they will purchase power from different Renewable and Co-



generation sources of energy to meet its Renewable Purchase Obligation (RPO).

WBSEDCL also submitted that they will purchase some quantum of power in

radial mode from DVC at Asansol and Burdwan areas, from DPL (at 33 kV & 11

kV) in and around Durgapur area and from IPCL (at 11 kV) at Asansol area, from

Govt. of Sikkim (at 11 kV) at Rangpoo area, from Assam DISCOMs for serving

the Jhankoti area near Assam – West Bengal border and WBREDA (at 11 kV) at

Frezerganj area for catering its own consumers. WBSEDCL further submitted

that to maintain the gap between supply of power and system demand they have

projected to purchase peak short-term power of 3350 MU. Accordingly,

WBSEDCL has projected to purchase a total quantum of 39799 MU of power to

meet their demand in addition to their own ex-bus generation of 1641 MU

(including PPSP).

4.9.2 WBSEDCL in their petition also requested the Commission to allow the cost of

power for ISGS as may be determined by the Appropriate Commission in its

Tariff Order.

4.9.3 To analyze the power purchase requirement vis-à-vis shortfall and / or surplus,

the Commission directed WBSEDCL to submit projected season-wise hourly

Load Generation Balance Report (LGBR) for the year 2017-18. Accordingly,

WBSEDCL vide their letter No. REG/SERC/MYT 5th Control Period/71 dated 23rd

4.9.4 On prudent analysis, the Commission observed that there is a huge surplus

between requirement of power and power purchase plan as per the hourly LGBR

report submitted by WBSEDCL. Moreover it shows purchase of short-term power

even during off-peak hours, when there is surplus. Commission also observes

that firm power availability shown in LGBR is much less than the share of

WBSEDCL from Inter-State Generating Stations (ISGS).

May, 2017 submitted their seasonal Load Generation Balance Report in respect

of hourly demand vis-à-vis power purchase plan from different sources.



Figure 1: Graphical representation of LGBR submitted by WBSEDCL - Summer

Figure 2: Graphical representation of LGBR submitted by WBSEDCL - Monsoon

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.0000

-01

02-0

304

-05

06-0

708

-09

10-1

112

-13

14-1

516

-17

18-1

920

-21

22-2

3

Firm Availability

Total availability (incl short-term power)

Power requirement (incl T&D loss + PPSP)

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

00-0

1

02-0

3

04-0

5

06-0

7

08-0

9

10-1

1

12-1

3

14-1

5

16-1

7

18-1

9

20-2

1

22-2

3


Firm Availability


MW

MW



Figure 3: Graphical representation of LGBR submitted by WBSEDCL - Winter

4.9.5 In response to Commission’s query, WBSEDCL vide their letter dated 20th

� Demand of own consumers,

December, 2017 submitted that scheduling of NTPC power plants are

considered as per scheduled generation of last 3 years and availability of

WBPDCL has been considered as per projection received from WBPDCL. They

further submitted that total availability including power purchase has been

projected to meet -

� Pumping power to PPSP,

� Excess loss over normative loss,

� Committed sale to person other than consumers and licensees of 250

MW,

� Sudden requirement of power by other licensees of the State in

exigencies.

WBSEDCL also submitted that they have considered additional gap for spinning

reserve of 5% and cold reserve of 5% to meet the uncertainty of power

availability in real time operation.

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.0000

-01

02-0

3

04-0

5

06-0

7

08-0

9

10-1

1

12-1

3

14-1

5

16-1

7

18-1

9

20-2

1

22-2

3

Firm Availability



MW



4.9.6 The Commission after careful analysis observes that for the purpose of

finalizing power procurement plan, estimation of actual availability from the

power plants is required. Thus the hourly availability of each power plant as per

their Declared Capacity (DC) during previous years after prudent analysis

requires to be considered for LGBR purpose instead of considering their

scheduled generation. Thus consideration of scheduled generation of previous

years for the purpose of ISGS availability projection is not accepted. Moreover,

from the Regional Energy Accounting Statement (REA) published by ERPC and

the bills submitted by NTPC and DVC for the month of March 2017 it is

observed that FSTPS-Stage I&II, FSTPS-Stage-III, TSTPS and Mejia-V have

achieved annual PAF for the year 2016-17 more than their normative PAF.

However, in absence of proper hourly average DC values, Commission finds it

suitable to consider the availability based on normative availability factor,

normative auxiliary consumption and % share / LTA contract of WBSEDCL from

these ISGS. For the generating stations of WBPDCL, Commission finds it

suitable to consider the projected availability as per communication of WBPDCL

submitted by WBSEDCL. For all the hydro generating stations, IPPs, renewable

and co-generation, hourly availability submitted by WBSEDCL is considered.

Commission further observes that any additional purchase of power due to

excess loss over normative loss, if any, will be taken care of during FPPCA as

per the provisions of Tariff Regulations. However, WBSEDCL has not given any

reason for considering short-term purchase during off-peak hours.

4.9.7 Commission now considering the 5% spinning reserve, 5% cold reserve and

committed sale to persons other than consumers and licensees as well as

normative availability from ISGS generation as stated in paragraph 4.9.6 above

re-computes the LGBR as below:



Revised LGBR for WBSEDCL1. Summer

2. Monsoon

0

1000

2000

3000

4000

5000

6000

7000

1 3 5 7 9 11 13 15 17 19 21 23

Load including PPSP Pump

Firm availability incl PPSP Gen

0

1000

2000

3000

4000

5000

6000

7000

1 3 5 7 9 11 13 15 17 19 21 23


Firm availability incl PPSP Gen

MW

MW



3. Winter

4.9.8 It is observed from revised LGBR, that considering 5% spinning reserve and 5%

cold reserve as well as export commitment of WBSEDCL there is shortfall only

during peak hours, which may be sourced from short-term market. Thus,

generality, Commission does not find any merit to consider round-the clock

purchase of short-term power, except under the conditions as mentioned in the

provision to paragraph 4.9.10 below.

4.9.9 Energy available from own generating stations of WBSEDCL including PPSP

for the year 2017-18 has been admitted as 1640.97 MU considering the

following:

a) For Hydel and mini hydel power plants the generation has been projected

considering the same PLF as in 2015-16, as these are must run plants

along with normative auxiliary;

b) For PPSP the generation projected by WBSEDCL in line with actual

generation during 2015-16 has been admitted along with normative

0

1000

2000

3000

4000

5000

6000

7000

1 3 5 7 9 11 13 15 17 19 21 23


Firm availability incl PPSP GenMW



auxiliary consumption. Pumping energy requirement of PPSP has been

admitted as 1425.68 MU considering 74% efficiency;

c) For solar projects the amount projected by WBSEDCL has been admitted.

d) In view of availability of grid power in Sagar Island no sent out generation

from Rudranagar diesel generating station has been projected by

WBSEDCL, which has been admitted by the Commission.

Detailed computation has been enclosed in Annexure-4B.

4.9.10 Considering the requirement for 24x7 uninterrupted supply in the State,

Commission allows the power purchase quantum as projected by WBSEDCL.

However such power is to be purchased following the merit order despatch

principle. Accordingly Commission computes the power purchase cost of

WBSEDCL in Annexure-4C and Annexure-4D considering the followings:

a) The capacity charge payable has been computed considering the latest

tariff order published by Appropriate Commission vis-à-vis the share of

WBSEDCL in respective generating stations following the principles of

Tariff Regulations.

b) Energy charge rate has been considered based on actual power purchase

bills including applicable trading margin, etc, and the same has been

considered for merit order despatch except for must run plants.

c) For WBPDCL availability has been projected as per reduced availability

declared by WBPDCL and the fixed cost has been adjusted accordingly.

In absence of tariff order of WBPDCL for the year 2017-18, the capacity

charge and energy charge has been computed considering the latest

available tariff order for the year 2016 – 2017 in respect of WBPDCL.



d) The purchase price of power from DVC in radial mode has been

considered as per the actual power purchase bills.

e) The purchase price of power from CESC in radial mode has been

considered at the rate approved in Tariff order 2016-17.

f) The rate of purchase of power from DPL has been considered as

projected by WBSEDCL.

g) The purchase price of Assam Power, Short Term power for Solar RPO

and Short Term power for Non Solar RPO has been considered as

projected by WBSEDCL.

h) Considering the fact that neither any power has been purchased from

Dagachhu HEP during 2017-18 nor any PPA has been executed between

WBSEDCL and Dagachu HEP till date, the power purchase from

Dagachhu HEP is not considered and an equivalent amount of power is

considered under short-term purchase.

i) Considering the requirement of short-term power during peak hours, the

average peak rate of IEX power during the year 2017- 2018 has been

considered for short-term power purchase.

Provided that during real time operation, WBSEDCL may purchase power from

short-term markets based on the ‘real time’ power situation at the relevant time

or if such purchase ultimately reduces the overall cost of power.

4.9.11 The power purchase cost admitted by the Commission comes to Rs.

1351278.40 Lakh with an average rate of 339.53 paisa/unit.



4.9.12 Notwithstanding whatever else is contained elsewhere in contrary to this order

the above referred price and quantum of energy as considered is for the

purpose of projection in this tariff order only subject to the following conditions.

a) Such price and quantum will be changed / modified by the Commission

during the stage of FPPCA on submission of audited data.

b) In addition to the above mentioned price the purchase cost may vary on

applicability of MVCA or MFCA or FCA or FPPCA or any other regulatory

order / approval in accordance with the Act and rules / regulations framed

there under and any other statute or international bilateral agreement.

c) Though the energy quantum from Kolaghat, Bandel and Sagardighi

(Units I to IV) generating stations of WBPDCL is considered under this

order at a reduced level than normative level yet it does not limit

WBPDCL from generating at its normative level or at higher level than

norms at those generating stations.

4.10 The purchase price/cost of electricity by WBSEDCL from different licensees shall

be as per Annexure-4D for the years 2017 – 2018. However, such purchase

prices are subject to variation due to changes in their prices as already explained

at paragraph 4.9.12 above.

4.11 Out of the above purchase almost all the energy is being available at the

generation bus-bar except a part of the DVC and power drawn from other licensee

at HV level in radial mode. The radial mode feeding from any licensee is

considered at the point of injection in the distribution system. The feeding by DVC

in the grid (132 KV) is in the STU system.



4.12 The Commission now draws the energy balance for the years 2017 – 2018

considering the admitted net generation from different generating stations of

WBSEDCL and the purchase of power from different agencies as detailed in the

foregoing paragraphs and the sale of energy to own consumers and other

licensees along with the normative loss. Accordingly, the energy balance is shown

in the table in Annexure – 4E.

4.13 For above energy balance, distribution loss in the distribution system and the

transmission loss in transmission systems of WBSETCL have been considered as

per the norms as specified in the Tariff Regulations for 2017 - 2018. CTU loss has

been considered as projected by WBSEDCL.

4.14 It is observed from the energy balance prepared and enclosed as Annexure – 4E that incidental power to the tune of 7165.89 MU will remain in the credit of

WBSEDCL, which includes committed sale to persons other than consumers and

licensees. WBSEDCL shall either sell such power to others or back down some of

the generation. Accordingly Commission finds it suitable to adjust the cost of

7165.89 MU power at average power purchase rate of 339.53 paisa/unit. Actual

amount realized by the licensee shall be considered during FPPCA.

4.15 For merit order dispatch, SLDC and ALDC of WBSEDCL shall consider the energy

charge of the generating stations as determined in the prevailing relevant tariff

orders for the generating companies / licensees.

Monthly Fuel Cost Adjustment (MFCA) or Monthly Variable Cost Adjustment

(MVCA) as may be applicable shall be added to the above energy charge for merit

order dispatch as notified by WBPDCL or DPL or CESC for their respective

generating stations or sales as licensee for the concerned month.



4.16 For power stations of NTPC and DVC, WBSEDCL shall provide on monthly basis

to SLDC / ALDC of WBSEDCL the average value of fuel related cost on the basis

of last three months which are available to WBSEDCL in order to consider such

cost for merit order dispatch. Such information shall be given to SLDC on each

month for each power station within three working days of receiving the power

purchase bill for that power station on the basis of the amount mentioned in the

bill. For this purpose for NTPC the summated amount of base energy charge and

fuel price adjustment (FPA) shall be considered as effective energy charge.

Similarly for DVC the summation of energy charge and fuel cost surcharge (FCS)

shall be considered as effective energy charge. Such effective energy charge shall

then be considered by SLDC / ALDC of WBSEDCL for merit order dispatch

purpose only. In case of single part tariff where fixed charge recovery through

target availability is not done, the tariff itself will be considered as energy charge

for merit order dispatch.


ANNEXURE-4A

ENERGY SALES TO OWN CONSUMERS


SL No.


For the Year 2017-18

Projected by WBSEDCL


(in MU)

A. LT Category

1 Labour line 2.00 2.00 2 Lifeline 436.00 436.00 3 LT Domestic (below 50 kVA) 10173.00 10173.00

4 LT Domestic (50 - 200 KVA) 9.00 9.00

5 LT Commercial (below 50 KVA) 2175.00 2175.00 6 LT (Commercial) (50-200 KVA) 158.00 158.00 7 LT Others (50 - 200 kVA) 48.00 48.00

8 Pvt Edu 0.93 0.93

9 LT Public Bodies 29.00 29.00

10 Common service for industrial Estate 0.01 0.01

11 Commercial Plantation 2.00 2.00

12 Construction Power 30.00 30.00

13 Emergency 0.06 0.10

14 Short term 36.00 36.00

15 Temporary 0.00 0.00

16 LT Industrial (below 50 kVA) 962.00 962.00

17 LT Industrial (50 -200 KVA) 377.00 377.00

18 LT Agriculture 1745.00 1745.00

19 LT Public Water Works 317.00 317.00

15 Public Lighting 285.00 285.00

Total LT 16785.00 16785.04



SL No.


For the Year 2017-18

Projected by WBSEDCL


(in MU)

B. HT Category 1 HT Domestic 14.00 14.00 2 HT Commercial 851.00 847.00 3 MES 105.00 105.00 4 HT Public Utility 192.00 192.00 5 Sports Complex & Auditorium 4.00 4.00 6 Construction 15.00 15.00 7 Private Educational 41.00 41.00 8 Commercial Plantation 3.00 3.00 9 Common Service for Industrial Estate 0.00 0.00

10 Emergency Supply 3.00 3.00 11 Short Term 1.00 1.00 12 HT Industrial 5593.00 5593.00 13 HT Community Irrigation 0.00 0.00 14 HT Public Water Works 217.00 217.00 15 Cold Storage & Dairy 400.00 400.00 16 Traction 1104.00 1104.00

Total HT 8543.00 8539.00

Overall Total Sale (A + B) 25328.00 25324.04


ANNEXURE-4B

POWER FROM OWN GENARTING STATIONS


SL No.

Generating Station Capacity PLF Gross Gen

Aux Aux Ex-bus

% MW % MU MU MU

A.

Generation available from WBSEDCL Own Plants (at EHV) Hydel

1 Jaldhaka Hydel Power Station Stage I 36.00 43.76% 138.00 1.0% 1.38 136.62 2 Rammam Hydel Power Station 51.00 56.85% 254.00 1.0% 2.54 251.46 sub-total 388.08 Mini Hydel 3 Jaldhaka Hydel Power Station Stage II 8.00 51.37% 36.00 1.0% 0.36 35.64 4 TCF Hydel Power Station PS - I 22.50 14.21% 28.00 1.0% 0.28 27.72 5 TCF Hydel Power Station PS - II 22.25 14.21% 28.00 1.0% 0.28 27.72 6 TCF Hydel Power Station PS - III 22.50 12.18% 24.00 1.0% 0.24 23.76 sub-total 114.84 7 Purulia Pump Storage 900.00 13.38% 1055.00 1.7% 17.935 1037.065 TOTAL (A) 1563.00 23.02 1539.987

B.

Generation available from WBSEDCL Own Plants (at HV)

Mini Hydel 1 Kurseong Fazi Micro Hydel Power Station 2.50 6.26% 1.37 1.0% 0.01 1.36 2 Little Rangit Micro Hydel Poer Station 2.00 47.26% 8.28 1.0% 0.08 8.20 3 Sidrabong Micro Hydel Power Station 0.60 2.28% 0.12 1.0% 0.00 0.12 4 Richington Micro Hydel Power Station 2.00 7.36% 1.29 1.0% 0.01 1.28 5 Messanjore 4.00 21.78% 7.63 1.0% 0.08 7.56

6 Mangoo Kalikhola Micro Hydel Power Station 3.00 27.78% 7.30 1.0% 0.07 7.23

sub-total 25.73 7 Solar 40.00 9.04% 75.25 75.25 TOTAL (B) 101.24 0.26 100.98

OVERALL (A:B) 1664.24 23.27 1640.969


ANNEXURE-4C

ENERGY TO BE PURCHASED


SL No.

Name of Agency

Installed capacity

Ex-bus Availability

/ Design Energy

WBSEDCL Share MU Proposed

Purchase Admitted Aux Exbus PAFM

MW % MW % MU % MW MU MU

A Injecting in CTU

1 Farakka TPS Stage I & II 1600 6.47% 1496.5 85% 11142.94 30.54% 3403 2374 3403

2 Farakka TPS Stage III 500 5.75% 471.25 85% 3508.93 36.80% 1291 826 1291

3 Talcher STPS 1000 5.75% 942.5 85% 7017.86 9.10% 639 610 639

4 NHPC (Rangit) 60 1% 338.61 28.34% 95 93 95

5 NHPC (Teesta V) 510 1.2% 2572.70 23.98% 610 591 610

6 NHPC (TLDP III) 132 1% 594.09 100% 588 582 588

7 NHPC (TLDP IV) 160 1% 720.00 100% 713 713 713

8 PTC (Chukhha) 336 554 554 554

9 PTC (Kurichhu) 60 20 20 20

10 PTC (Tala) 1020 1297 1297 1297

11 PTC (Baglihar) 450 2807 22.22% 100 618 655 618

12 PTC Adhunik 540 9% 100 797 741 797

13 DVC (Mejia V) 250 9% 227.5 85% 1693.97 20% 339 142 339

14 TPTCL (Maithon Right Bank)

1050 6.50% 981.75 85% 7310.11 28.57% 300 2089 2000 2089

15 NVVN Bundled Power Solar

69 69 69

16 NVVN Bundled Power Thermal

361 361 361

17 Dagachhu HEP 360 362 0

18 Short Term Power 3350 1859

19 Short Term for Solar RPO

100 ####

# 138 138

20 Short Term for Non Solar RPO

266 266

sub-Total 15744.0 15744.1



SL No.

Name of Agency Installed capacity

Ex-bus Availability

/ Design Energy

WBSEDCL Share MU Proposed

Purchase Admitted Aux Exbus PAFM

MW % MW % MU % MW MU MU B Injecting in STU 1 Kolaghat TPS 1260 9.6% 1139 75% 7483.49

MU communi-cated

by WBPDCL

5018 5018 5018.00 2 Bakreshwar TPS (U#1,2,3) 630 9.0% 573.3 85% 4268.79 4340

7164 4340.00

3 Bakreshwar TPS (U#4,5) 420 9.0% 382.2 85% 2845.86 2824 2824.00 4 Bandel TPS 450 9.7% 406.35 77% 2740.91 1676 1676 1676.00 5 Santaldih TPS 500 9.0% 455 85% 3387.93 3651 3651 3651.00 6 Sagardighi TPS (U#1 &U#2) 600 9.0% 546 85% 4065.52 2409 2409 2409.00 7 Sagardighi TPS (U#3 &U#4) 1000 9.0% 910 85% 6775.86 3250 3250 3250.00 8 DPL 132 kV 5 5 5.00 9 Tata Power Company Limited 129 129 129.00

10 Bengal Energy Limited 227 227 227.00 11 Electro Steel Casting Limited 70 70 70.00 12 Shree Renuka Sugars Ltd 50 50 50.00 13 Himadri Chemical Ltd 12 MW 7 7 7.00 14 Himadri Chemical Ltd 8MW 43 43 43.00 15 Nippon Power Limited 11 11 11.00 16 Neora Hydro Limited 9 9 9.00 17 Rashmi Cement Ltd 6 6 6.00 18 Concast Bengal Ind Limited 5 5 5.00 sub-Total 23730 23730.00 C Injecting in WBSEDCL system 1 DPL 33 kV & 11 kV 69 69 69.00 2 CESC Ltd 40 40 40.00 3 DVC (radial) 212 212 212.00 4 WBREDA 0.21 0.21 0.21 5 Assam Power 3.5 4 3.50 6 Gov. Sikkim Rangpo 0.05 0 0.05 sub-Total 324.76 324.76

OVERALL POWER PURCHASE 39799 39799


ANNEXURE-4D

POWER PURCHASE COST


Sl No

Name of Agency

Gen ARR as per Tariff Order

Energy charge

rate

Purchase Admitted

Power Purchase cost

Fixed Charge

Energy Charge

Total Charge

lakh Paisa/kWh MU Rs lakh

A Injecting in CTU

1 Farakka TPS Stage I & II 94218.00 245.98 3403 28774.18 83708.31 112482.49

2 Farakka TPS Stage III 53287.28 251.69 1291 19609.05 32499.26 52108.31

3 Talcher STPS 65288.91 156.92 639 5941.29 10021.30 15962.59

4 NHPC (Rangit) 10795.88 183.00 95 1529.78 1738.54 3268.32

5 NHPC (Teesta V) 51874.39 116.00 610 6219.74 7070.55 13290.29

6 NHPC (TLDP III) 34792.88 309.70 588 17396.44 18214.98 35611.42

7 NHPC (TLDP IV) 20370.99 144.40 713 10185.50 10292.83 20478.33

8 PTC (Chukhha) 229.00 554 12679.12 12679.12

9 PTC (Kurichhu) 217.00 20 434.00 434.00

10 PTC (Tala) 216.00 1297 28013.69 28013.69

11 PTC (Baglihar) 372.30 618 22991.01 22991.01

12 PTC Adhunik 16225.11 103.88 797 16225.11 8280.90 24506.01

13 DVC (Mejia V) 23179.19 239.95 339 4635.84 8129.34 12765.18

14 TPTCL (Maithon Right Bank) 103948.26 199.73 2089 29699.50 41715.67 71415.17

15 NVVN Bundled Power Solar 1069.95 69 7361.26 7361.26

16 NVVN Bundled Power Thermal

351.16 361 12683.90 12683.90

17 Dagachhu HEP 0.00 0.00

18 Short Term Power 391.66 1859 72809.59 72809.59

19 Short Term for Solar RPO 450.00 138 6208.65 6208.65

20 Short Term for Non Solar RPO

334.00 266 8884.40 8884.40

sub-Total 473980.89 15744.1 140216.42 393737.30 533953.72



Sl No

Name of Agency

Gen ARR as per Tariff Order

Energy charge rate

Purchase Admitted

Power Purchase cost

Fixed Charge

Energy Charge

Total Charge

lakh Paisa/kWh MU Rs lakh

B Injecting in STU

1 Kolaghat TPS 52804.17 245.47 5018.00 35407.44 123176.85 158584.29

2 Bakreshwar TPS (U#1,2,3) 44910.88 216.33 4340.00 45660.04 93887.22 139547.26

3 Bakreshwar TPS (U#4,5) 29940.58 216.33 2824.00 29825.59 61091.59 90917.18

4 Bandel TPS 17382.99 270.27 1676.00 10629.27 45297.25 55926.52

5 Santaldih TPS 44812.92 217.05 3651.00 46552.76 79244.96 125797.72

6 Sagardighi TPS (U#1 &U#2) 43778.04 217.23 2409.00 28719.78 52330.71 81050.49 7 Sagardighi TPS (U#3 &U#4) 103356.30 225.33 3250.00 54885.74 73232.25 128117.99

8 DPL 132 kV 419.00 5.00 209.50 209.50

9 Tata Power Company Limited

186.00 129.00 2399.40 2399.40

10 Bengal Energy Limited 276.00 227.00 6265.20 6265.20

11 Electro Steel Casting Limited 253.00 70.00 1771.00 1771.00

12 Shree Renuka Sugars Ltd 213.35 50.00 1066.75 1066.75

13 Himadri Chemical Ltd 12 MW

211.00 7.00 147.70 147.70

14 Himadri Chemical Ltd 8MW 334.00 43.00 1436.20 1436.20

15 Nippon Power Limited 360.00 11.00 396.00 396.00

16 Neora Hydro Limited 360.00 9.00 324.00 324.00

17 Rashmi Cement Ltd 237.00 6.00 142.20 142.20

18 Concast Bengal Indusrty Ltd 319.00 5.00 159.50 159.50

sub-Total 336985.88 23730.00 251680.62 542578.27 794258.89

C Injecting in WBSEDCL system

1 DPL 33 kV & 11 kV 395.00 69.00 2725.50 2725.50

2 CESC Ltd 625.00 40.00 2500.00 2500.00

3 DVC (radial) 435.82 212.00 8312.41 9239.38 17551.79

4 WBREDA 400.00 0.21 8.40 8.40

5 Assam Power 785.00 3.50 2.06 274.75 276.81

6 Gov. Sikkim Rangpo 655.09 0.05 3.28 3.28

sub-Total 0.00 324.76 8314.47 14751.31 23065.78

OVERALL POWER PURCHASE (A + B +C) 39798.83 400211.51 951066.88 1351278.40


ANNEXURE-4E

ENERGY BALANCE


Ref Particulars Derivation Admitted

A Energy Input 1 Own Generation 1664.24 2 Auxiliary Consumption 23.27

3Units delivered to system from generation (including infirm power, if any)

3 = 1-2 1640.97

(i) Energy delivered to STU system 1539.99 (ii) Energy delivered to Distribution system 100.98

4 Energy Purchased (i) Energy purchased at ISTS periphery 15744.07

(ii) Energy purchased at STU periphery 23730.00

(iii) Energy purchased at Distribution periphery 324.76

Less: CTU Loss 325.08

(iv) Less: STU Loss 1383.43 5 Energy Received for Wheeling 13.00 6 Gross Energy Input 7 = sum(3:5) 39744.30

7Energy sold to persons other than licensee or any consumers 7165.89

8Additional units allowed by Commission for Sales to persons other than licensee or any consumers 252.22

9Units sold/used for pumping energy of Pumped storage project at Bus bar 1425.68

10Additional units allowed by Commission against Pumping Energy for Pumping Loss 50.18

11 Units sold to other Licensees 72.00

12Additional Units allowed by Commission for Sales to other licensees 2.53

13 Net UI [Actual drawl]

14 Total Energy goes out of System 15 = sum(7:13)8968.49

15 Energy input for own system 15 = 6-14 30775.80



Ref Particulars Derivation Admitted

B Energy utilisation [Form 1.7] a Units sold to consumers 25324.04

Units sold to Licensees at radial mode 1 b Units wheeled 12 c Additional Units allowed for wheeling 1

dUnits utilised in own premises including construction power

52.00

e Unutilised Units 5385.77 Total Energy sum(a:e) 30775.80


CHAPTER – 5

FIXED CHARGES


5.1 The analysis of the fixed charges projected by WBSEDCL for the ensuing year

2017-18 of fifth control period under the Multi Year Tariff (MYT) application under

different heads of accounts has been taken up in this chapter.

5.2 WBSEDCL has projected the gross fixed charges, income from different non-tariff

sources and different income from other heads for the ensuing year 2017-18.

5.3 While determining fixed charges on different heads for WBSEDCL for the fifth

control period 2017-18 the following considerations have taken place:

5.3.1 Commission observed that Central Electricity Regulatory Commission based on a

hybrid index of WPI (Wholesale Price Index) & CPI (Consumer Price Index) has

observed an annual inflation trend of 8.35 % while fixing the norms of O&M

expenses in Central Electricity Regulatory Commission (Terms and Conditions of

Tariff) Regulations, 2014 (hereinafter referred to as ‘CERC Tariff Regulations’) for

central sector utilities for the period 2014-2019. This inflation trend of 8.35 % is

computed based on five-year average of WPI and CPI indices for FY 2008-09 to

FY 2012-13 considering 60% and 40% weightage on WPI and CPI respectively.

However, while fixing norms of O&M cost (which includes employee cost also)

the annual escalation rate on O&M expenses during the period 2014-2019 has

been considered as 3.32% for A.C. transmission system as per the statement of

reasons of the CERC Tariff Regulations for the said period. This 3.32% is the

110% of the actual Compounded Annual Growth Rate (CAGR) (3.02%) of O&M

expenses for A.C. transmission system during the period 2008-09 to 2012-13

computed on the basis of 70% weightage on actual O&M cost of per bay of sub-

station and 30% weightage on actual O&M cost of per CKM transmission line.

Taking the above mentioned principle adopted by CERC as a guideline

Commission also decides to find out a reasonable annual escalation rate for



WBSEDCL for all sub heads under O&M expenses, Lease Rental Expenses,

expenses for outsourcing (manpower and vehicle), expenses for outsourcing

(other than manpower and vehicle), and expense head for complaint

management mechanism, insurance and rates & taxes with certain deviation

based on certain reasons as explained below:

a) The Fifth Control period is comprised of the year 2017-18. Inflationary trend

has been considered upto Jan, 2017 for WPI and CPI and weightage has

been given to WPI & CPI at the ratio of 60:40 in line with the norms fixation

methodology under CERC Tariff Regulations. This is being done in order to

capture the realistic trend of 2017-18 as far as possible so that projection for

fifth control period 2017-18 can have better accuracy. Accordingly based on

the WPI numbers and CPI numbers as available in the website of Economic

Advisor of GOI for WPI and Labour Bureau of GOI for CPI the computed

inflation trend for the above 10 months and previous years are given in the

following table 1.

Table- I

TREND OF INFLATION RATE FOR THE PERIOD APRIL,2016 TO JAN,2017Average inflation rate as per WPI from April,2016 to Jan,2017 2.88Average inflation rate as per CPI from April,2016 to Jan,2017 4.45

Average inflation rate as per WPI + CPI (60:40) from April,2016 to Jan,2017 3.51Note : For detail data Annexure -5A may be seen

b) Different sub heads under O&M expenses, Lease Rental Expenses,

expenses for outsourcing (manpower and vehicle), expenses for outsourcing

( other than manpower and vehicle), and expense head for complaint

management mechanism, insurance and rates & taxes are effected by

inflationary trend but at different degrees depending on the characteristics of

such head or sub-head. In this context two recognized inflationary trends



used in the country are WPI index and CPI index. Along with these two types

of inflationary rate for power sector another third type of inflationary rate has

been used by the Commission which is based on hybrid index (WPI+CPI) as

explained in paragraph (a) above. In table-II the basis of inflationary rate

considered for such heads and sub-heads of expenditure are given. In this

context Commission has decided to consider a number of elements of fixed

charges to be sensitive to CPI index based inflationary rate instead of hybrid

(WPI+CPI) index in line with CERC norms fixation as explained above on the

ground that those heads/ subheads of any distribution licensee are heavily

burdened with employee wages/ allowances and benefits. However for lease

rental line such sensitivity is considered with WPI index. In this context it is to

be noted that all these heads of expenditure are treated as heads under O&M

function of CERC Tariff Regulations. Accordingly the above inflation rate as

given in the table above are used for applicability in giving escalation rate in

2017-18 with respect to the previous years’ admitted expenditure to find out

the admitted expenditure of the referred heads in that year. Thus the inflation

rate considered for tariff computation are as per the following table - II:

Table –II

INFLATION TRENDS

Financial Years CPI WPICombined WPI & CPI (60 : 40)

Remarks

2012-13 10.43 7.36 8.59 Actual2013-14 9.72 5.98 7.48 Actual2014-15 6.30 2.15 3.81 Actual2015-16 5.65 -2.51 0.75 Actual2016-17 4.45 2.88 3.51 Actual

2012-13 to 2016-17 7.31 3.17 4.83 Averaged on annual Basis

2013-14 to 2016-17 6.53 2.12 3.892014-15 to 2016-17 5.47 0.84 2.692015-16 to 2016-17 5.05 0.18 2.132012-13 to 2015-16 8.03 3.25 5.16

Note : For detail data Annexure –5 A may be seen



c) It has been observed that the function of meter reading and bill distribution is

under a transition mechanism now from manual billing to spot billing where

meter reading and bill distribution are done at the same instance resulting

into lesser transaction cost. Thus to capture the flavor of this transition period

properly and to have a better projection or estimation from 2016-17 to 2017-

18, the head of meter reading and bill distribution has been considered

compositely in the manner done by WBSEDCL.

d) For finding out the expenditure to be admitted by the Commission, the

estimated expenditures of 2016-17 submitted by WBSEDCL were scrutinized

by the Commission so that overestimated value can be rationalized to a

reasonable extent. This is being done as otherwise the existence of

overestimated expenditure for 2016-17 may result into higher admitted

amount for fifth control period 2017-18 because the computation for

projection of expenditure for 2017-18 is done by applying the annual

escalation rate over the estimated figure of 2016-17. As regards, the

estimated value as provided by WBSEDCL for 2016-17 Commission finds

that against some elements, the estimation of expenditure appears to be on

extremely higher side. The Commission cannot accept such over-estimation.

In any year this deviation can occur for any item of expenditure but it cannot

be considered as a trend for future projection. Such items of expenditure

which are estimated on higher side have been dealt in the next paragraph. In

fact for realistic estimation for 2016-17 the impact of business volume

increase expressed in CAGR for 2013-14 to 2015-16 alongwith inflationary

trend in 2016-17 (upto January 2017) has been considered by the

Commission. Accordingly, the Commission has done its own estimation as

may be found in the Table-1 of Annexure –5B by applying its prudence which

are explained below item wise:



i) The trend of actual expenditure on lease line head during the period

2012-13 to 2015-16 is very erratic. The value of 2012-13 to 2014-15 has

not been considered for the purpose of estimation of 2016-17. Lease

rental charges as estimated by WBSEDCL for 2016-17 of Rs.5901 Lakh

is about 288.42% higher than the audited actual value of Rs 2046 lakh in

2015-16. The primary lease line for WBSEDCL’s communication network

has been completed by 2012-13. Thus the estimated expenditure in 2016-

17 cannot be so high. WBSEDCL has attempted to justify their estimation

for 2016-17 and 2017-18 by indicating in their submission under para 6.4

that lease rental expenses include the fees paid to the telecom operators

for utilizing the MPLS VPN connectivity but no detailed justification has

been furnished for such higher estimation. Hence it is estimated by the

Commission for 2016-17 after imposing WPI based inflation rate for 2016-

17 along with additional impact due to increase in establishments of

WBSEDCL on the actual expenditure of 2015-16 . Such additional impact

due to increase in establishments has been considered as 0.25% for each

1% increase in distribution line length (DLL). Accordingly the expenditure

for 2016-17 for lease rental as estimated by the Commission is Rs 2134

lakh.

ii) Expenses for complaint management mechanism is an expenditure

related to toll free telephone for ZCC, SMS charge to communicate with

mobile van, rental charges of IVRS system, separate telephone at

customer care centre for complaint management mechanism and anti-

theft toll free telephone charges. The whole system being already

stabilized by this time it will now be considered as a controllable item in

the fifth control period 2017-18. WBSEDCL has not justified the reasons

that why in 2016-17 the estimated expenditure of Rs.351 Lakh has

increased by 11.43% of the actual value of Rs.315 Lakh in 2015-16 while



there is a progressively downward trend in the expenditure during the

previous year 2012-13 to 2015-16 indicating a negative CAGR for the

period @ 6%. Commission finds no merit in such estimation by

WBSEDCL. Thus the estimated value for 2016-17 has been considered

by giving effect to this downward trend applying CAGR of the actual

expenditure of previous years 2012-13 to 2015-16 on the audited value of

2015-16. Accordingly the expenditure on complaint management

mechanism as estimated by the Commission for 2016-17 is Rs 296 Lakh.

Impact of separate inflationary trend for 2016-17 on this head has not

been considered as in telecom service such escalation rate is very

insignificant as such sector is still expanding at faster rate.

iii) For the expenditure heads of HT Line and substation Maintenance & LT

Mobile Maintenance Service-MCSU specific classified information

separately for the segments of ‘Manpower & Vehicle’ and ‘Other than

Manpower & Vehicle’ is not available for all the previous years from the

audited accounts. Such classified audited data are to some extent

available for three previous Years 2012-13, 2013-14, 2014-15.

Commission directed to submit the required information with breakup of

outsource expenditure under the sub heads ‘Manpower & Vehicle’ and

‘Other than Manpower & Vehicle’ for HT Line and substation Maintenance

& LT Mobile Maintenance Service-MCSU in point (iv) of Memo. No.

WBERC/TP-65/16-17/2478 Dated 28.3.2017 for all the Previous Years

and also Base Year and Ensuing Year. WBSEDCL authority in their reply

under Memo. No. REG/SERC/MYT 5th Control Period/71 Dated 23.5.2017

in Annex II stated that they have considered all the outsourcing expenses

under Manpower head as all the expenses related to the outsourced

activities are manpower oriented. However during scrutiny Commission

observes that the outsourcing expenses have some elements within it



which are uncontrollable in nature since these are related to Manpower

and are to be paid as per statute following labour rates as per Govt.

Order, Employers contribution as per Employees Provident Fund

Organization (EPFO), Employers contribution as per Employees State

Insurance (ESI) and the part related to vehicle, which is dependent upon

the Govt. rate applicable for the vehicle category. Again, some elements

as Profit and Overhead are not dependent upon any statute or Govt.

Order and accordingly controllable since these are proximately related to

leverage of efficiency factors which prompt a proper assessment of cost

of resources while exercising due diligence before awarding a contract. It

is worthwhile to mention that as per copy of outsourcing contracts as

entered into by WBSEDCL and submitted to the Commission alongwith

their petition, it is observed that in certain cases wages have been agreed

upon at a level significantly higher than the minimum wages besides

introducing special allowances. Again, profit and overhead have been

agreed upon at a rate of 25% in many cases the rationale for which is not

clear. Such additional elements, when introduced, change the character

of the expenditure as it assumes the factor of controllability. This aspect

will accordingly be taken up while truing up during APR.

However, now in absence of such break up of Outsourced expenditure

into controllable and uncontrollable elements, the data available for 2015-

16 and the estimate of 2016-17 and the ensuing year 2017-18 as

presented in Form 1.17(k) alongwith the Tariff Petition for 2017-18, the

gross expenditure shown against HT Line and substation Maintenance &

LT Mobile Maintenance Service-MCSU has been reclassified into

controllable and uncontrollable elements on the basis of latest

classification available from audited accounts for 2013-14 since such

classification is not fully available in Accounts for 2012-13, 2014-15 and



2015-16. It was observed that in case of HT Line and substation

Maintenance, no break up was available in the petition. However such

break-up was available in the Annual Accounts for the years 2012-13,

2013-14 and 2014-15. In case of LT Mobile Maintenance Service-MCSU,

no break-up was available in the petition and no break up was available

either in the Accounts for the years 2012-13, 2014-15 and 2015-16.

Accordingly such data for LT Mobile Maintenance Service-MCSU was

reclassified for the years 2012-13, 2014-15, 2015-16 based on the

audited actual for the year 2013-14 as per Annual Accounts, which was

available. Keeping parity with the above, such break-up was derived for

the year 2015-16 based on the audited actual of 2013-14 which was also

available in case of HT Line and substation Maintenance. WBSEDCL is

directed to submit data under each head of Out Source expense

classified as (i) Manpower and Vehicle comprising expenditure on the

uncontrollable elements which are guided by statute and Govt. orders (ii)

Other than Manpower and Vehicle as profit and overhead duly certified by

Auditor with APR for the year 2017-18. Based on the reclassified

elements of expenditure on Manpower and vehicle and other than

Manpower and Vehicle for the year 2015-16 as stated above and

depicted in Table 3 of Annex 5B, the Commission estimated the

expenditure on Outsourced services - HT Line and substation

Maintenance & LT Mobile Maintenance Service-MCSU for 2016-17

considering additional impact due to increase in business growth of

WBSEDCL on the actual expenditure of 2015-16. Such additional impact

due to increase in business growth has been considered with respect to

increase in distribution line length (DLL) in case of HT Line and substation

Maintenance and with respect to increase in Consumer Strength (CS) in

case of LT Mobile Maintenance Service-MCSU. Impact of hybrid inflation



for 2016-17 (upto January 2017) has been considered in case of

expenditure involving ‘Other than Manpower & Vehicle’ for both HT Line

and substation Maintenance and LT Mobile Maintenance Service-MCSU.

Impact of CPI inflation for 2016-17 (upto January 2017) has been

considered in case of expenditure involving ‘Manpower & Vehicle’ for both

HT Line and substation Maintenance and LT Mobile Maintenance

Service-MCSU. The details are shown in Annex 5B. The estimates for

2016-17 has been considered by the Commission for the segment –

‘other than Manpower and vehicle’ for HT Line and substation

Maintenance as Rs.4448 Lakh, for LT Mobile Maintenance Service-

MCSU as Rs.4691.96 Lakh and for the segment ‘Manpower and Vehicle’

for HT Line and substation Maintenance as Rs.12452 Lakh, and for LT

Mobile Maintenance Service-MCSU as Rs.8930.66 Lakh.

iv) For Data Ware-housing the actual annual expenditure has shown a

decreasing trend from Rs.80 Lakh in 2012-13 to 0.4 Lakh in 2015-16. The

Commission likes to maintain the estimation of WBSEDCL at Rs.0.40

Lakh for 2016-17.

v) Back Office Job-This cost arises mainly where there is want of

departmental staff to do official work. The number of personnel on regular

establishment as projected by WBSEDCL through Form 1.17(h) with the

Tariff Petition and subsequently through Memo. No. REG/SERC/MYT 5th

Control Period/29 dated 12.4.2017 in response to the Commission’s

query under Memo. No. WBERC/TP-65/16-17/2478 Dated 28.3.2017 are

14991 at the end of the year 2015-16, 15413 at the end of the year 2016-

17 and 16363 at the end of the year 2017-18. Thus there is a persistent

growth in the number of employees on regular establishment. The

expenditure on Back Office Job as per actuals for previous years



submitted through Form 1.17(k) has got reduced from Rs.289 Lakh in

2012-13 to Rs.176 Lakh in 2015-16. The reason for estimating

expenditure on Back Office at a higher level of Rs.201 Lakh for 2016-17

and Rs.223 Lakh for 2017-18 has not been justified in the petition

considering the fact that WBSEDCL has implemented ERP across the

organization. . Thus the Commission desires to restrict the estimate for

back Office job for 2016-17 at 2015-16 level at Rs.176 Lakh.

vi) The expenditure on the head of meter reading and bill distribution is

highly sensitive to consumer strength as the rate under the outsourcing

orders are determined per transaction basis. In case of new contract

agreement the likely increase is considered to be largely neutralized by

advantage of economies of scale due to increased consumer strength as

well as the process of such out-source activity which will become more

organized and efficient with the passage of time. In spot billing

mechanism, both meter reading and handing over the bill to consumer is

done in a single instance to reduce the transaction cost. This has to play

a major role in cost control in this head. In 2015-16 there is an

expenditure increase of 42.95 % in relation to 2014-15 while the

consumer growth in the same period was 8.35%.The CPI index during

2015-16 had a downward trend in relation to 2014-15. Thus for the

purpose of estimation, 2015-16 has not been considered as appropriate

base. Accordingly the estimated expenditure of 2016-17 has been

computed by the commission by giving effect of escalation of consumer

growth on the basis of CAGR of consumer strength during 2012-13 to

2015-16 and CPI index for the year 2015-16 and 2016-17 on the

considered base year 2014-15. Accordingly the estimated expenditure on

this head as computed by the Commission comes to Rs.9517.77 Lakh.



vii) The expenditure on the head of collection franchisee is highly sensitive to

consumer strength as the rate under the outsourcing orders are per

transaction basis. In case of new contract agreement the likely increase is

considered to be neutralized by advantage of economies of scale due to

increased consumer strength as well as the process of such out-source

activity which is to become more organized and efficient with the

passage of time. Thus the estimated expenditure of 2016-17 has been

computed by the commission after factoring escalation of consumer

growth @ CAGR upto during 2013-14 to 2015-16 over the actual

expenditure in 2015-16 on this head alongwith the effect of hybrid index

for 2016-17 as both man and machine cost is involved here. The scope of

work under this head is service charge for collection made through

automated collection kiosk and Tathya Mitra Kendra .Thus the estimated

expenditure comes to Rs.1688.64 Lakh.

viii) Security Expenses-It is seen from the data furnished in Form1.7 (k) that

the expenditure on this head shows a positive growth during the period

2013-2014 to 2015-2016 as Rs.2581 Lakh, Rs.2878 lakh and Rs.2995

Lakh respectively while the data for 2012-13 is to the tune of Rs.3797

Lakh. On further examination of the actuals for the previous years as

stated above it shows that in relation to 2012-13 in 2013-14 there is a

downward trend to the tune of 32% and from 2013-14 to 2014-15 there is

an upward growth to the tune of 11.51 % and in next year 2015-16 there

is a growth of 4.06% vis-a-vis 2014-15. It appears that there is an overall

downward trend in expenditure upto 2015-16 vis-a-vis 2012-13. Against

the above trend of actual expenditure WBSEDCL estimated a growth in

expenditure in 2016-17 to the tune of 12.39% in relation 2015-16. Security

expenses are directly related to setting up new establishments. On the

basis of projected growth of Customer Care Center and Division Office



furnished by WBSEDCL in Annexure IV of the Memo. No. REG/SER/MYT

5th Control Period/29 Dt.12.4.2017 against the query of the Commission

vide Memo. No. WBERC/TP-65/16-17/2478 dated 28.03.2017, there is a

Projection for establishment for 8 nos. Customer Care Centers only in

2016-17. Thus it is evident that there is a disconnect of expense on this

head vis-a-vis growth of establishment. While considering estimates for

2016-17 ,it was observed that no break up between the cost segments of

‘Manpower related’ and ‘Other than Manpower’ was available in the

petition. Such break-up was however available in the Annual Accounts for

the years 2012-13, 2013-14, 2014-15 . Accordingly, the average ratio of

expenditure for these three years were applied to derive the segregated

actuals for the year 2015-16 alongwith WBSEDCL claims for 2016-17

and 2017-18. Additional impact due to increase in establishments as

mentioned earlier has been considered as 0.25% for each 1% increase in

distribution line length (DLL) both in case of the segments of ‘Manpower

related’ and ‘Other than Manpower’. The effect of Hybrid inflation for

2016-17 has been considered by the Commission for the segment ‘Other

than Manpower’ in respect of Security Expenses and accordingly the

amount comes to Rs.375 Lakh for 2016-17. The effect of CPI inflation for

2016-17 has been considered by the Commission for the segment

‘Manpower related’ in respect of Security Expenses and accordingly the

amount comes to Rs.2793 Lakh for 2016-17. The details are at Annex 5B.

During truing up in APR WBSEDCL shall come up with all relevant

information and documents to justify their claim of expenditure on security

head. WBSEDCL is directed to classify the cost of Security expenses

between Manpower and Other than Manpower in line with Regulation

2.5.5 of the Tariff Regulations, as amended while submitting the APR for



the year 2017-2018 in line with the classification stated in Para

5.3.1(d)(iii) above.

ix) Insurance charges- the expenditure on this head shows an erratic trend.

The expenditure for 2012-13 is Rs.370 Lakh while in subsequent years

upto 2015-16 is Rs.711 Lakh, Rs. 555 Lakh and Rs. 808 Lakh

respectively and the estimated figure is Rs.955 Lakh for 2016-17 as

furnished by WBSEDCL. However the Commission considered the CAGR

of the period 2012-13 to 2015-16 to arrive at the estimated amount for

2016-17. Such estimation of the Commission was restricted to the

estimated amount provided by the WBSEDCL. The estimated amount

accordingly comes to Rs.955 Lakh.

x) In the case of other different elements of Operation and Maintenance

expenditure and also Franchise Cost the Commission made estimation

for 2016-17 considering growth of the sensitivity parameter and related

price index for 2016-17 as presented in Annex 5B . In respect of Rent and

Auditor Fees volume growth has been factored considering additional

impact due to increase in establishments of WBSEDCL on the actual

expenditure of 2015-16 . Such additional impact due to increase in

establishments and related allied costs has been considered as 0.25% for

each 1% increase in distribution line length (DLL). In respect of Repair

and Maintenance, the additional impact has been considered with respect

to increase in Distribution Line Length (DLL) . In respect of Legal charges,

Other A&G Expenses and Franchise Cost the volume parameter has

been considered based on CAGR of consumer strength during 2013-14 to

2015-16. The inflationary impact has been considered based on hybrid

inflation for 2016-17 (upto January 2017) for Repair and Maintenance,

Rent, Auditor Fees, Legal charges, and A&G Expenses and on CPI



inflation for Franchisee Cost. Such estimation of the Commission was

restricted to the estimated amount provided by the WBSEDCL in case of

Repair & Maintenance and Franchisee Cost. On such consideration the

estimated values are for Repair and Maintenance 30872 Lakh, Rent Rs

1191 Lakh, Auditor’s Fees Rs.206 Lakh, Legal Charges Rs.587.40 Lakh

& Other Admin and General Rs.12596.92 Lakh. In the case of Franchise

Cost the amount estimated by the Commission is Rs.640 Lakh.

xi) Rates and Taxes for the purpose of determination of ARR are statutory in

nature and it also comprises Municipal Taxes alongwith other taxes

accrued as invoiced while procuring a product or service relatable to

revenue expenditure only. It is observed from the actual for the years

2013-14 to 2015-16 that there has been a CAGR of 36% in the

expenditure for Rates & Taxes. Commission has also taken note of the

fact that a new tax framework of GST has been introduced w.e.f 1st July,

2017. Impact of such new tax framework will only be visible at the end of

2017-18. Hence any estimation following past trend of expenditure

covering a period range may not lead to a realistic estimation.

Considering the above, Commission decides to take the actual of 2015-16

as the estimated amount for 2016-17. The estimated value comes to 7678

Lakh for 2016-17. It is a matter of fact that any tax incidence arising out of

procurement of any goods or services is associated with the base value of

such goods and services and following which, the invoice which is raised

by the vendor comprises of the base value and the tax incidence. This

invoice forms the voucher as basic evidence in such financial transaction

involving expenditure towards procurement of goods and services which

is also considered as evidence in books of Accounts and accounted for

accordingly. So, any review or assessment of such expenditure for

procurement of goods and services whether actually incurred as in APR



or estimated as in ARR cannot be done excluding the tax incidence.

Accordingly, it is directed that while assessing APR for 2017-18 Tax

incidence wherever associated with any procurement of goods and

services recorded in the books of accounts on the strength of invoice shall

be considered under the specific respective expenditure head with which

it is associated. Accordingly WBSEDCL, while submitting APR for 2017-

18, shall furnish amount incurred towards tax associated for procurement

of goods and services separately in the respective expenditure head

against which it has been incurred and submit the same under the head

of such specific head of expenditure with which such tax is associated.

Such taxes related to procurement of goods and services, shall not be

considered under the head of Rates & Taxes while assessing Rates &

Taxes for APR 2017-18. Instead it will be considered in the respective

expenditure head for which it has been incurred while assessing the

particular expenditure incurred under that head in the APR 2017-18.

Such Tax incidence for GST or any other tax, whenever arises out of any

procurement of goods and services through a common invoice involving

the basic value of the goods and service alongwith related tax incidence

shall also be considered by the Commission in the ARR in the same

manner as explained above next time onwards. Accordingly, WBSEDCL

shall also come up with list of such Rates & Taxes showing the specific

heads of expenditure as proposed to be incurred against which such

GST/Tax is associated while submitting ARR for the next Tariff period. .

xii) In the case of Call Center (ZCC/RCC) the Commission considered the

capacity growth with respect to the increase in Consumer Strength (CS)

since such expenditure is directly relatable to increase in number of

consumers. While considering estimates for 2016-17 ,it was observed that

no break up between the cost segments of ‘Manpower related’ and



‘Other than Manpower’ was available in the petition and the Annual

Accounts for the years 2012-13, 2013-14, 2014-15 and 2015-16.

Accordingly, the methodology followed in case of Security Expenses has

been followed here. The effect of Hybrid inflation for 2016-17 has been

considered by the Commission for the segment ‘Other than Manpower’ in

respect of Call Center Expenses. Such estimation of the Commission was

restricted to the estimated amount provided by the WBSEDCL.

Accordingly the amount comes to Rs.313 Lakh for 2016-17. The effect of

CPI inflation for 2016-17 has been considered by the Commission for the

segment ‘Manpower related’ in respect of Call Center Expenses. Such

estimation of the Commission was restricted to the estimated amount

provided by the WBSEDCL. Accordingly the amount comes to Rs.2307

Lakh for 2016-17. The details are at Annex 5B. During truing up in APR

WBSEDCL shall come up with all relevant information and documents to

justify their claim of expenditure on Call Center head. WBSEDCL is

directed to classify cost of Call Center between Manpower and Other than

Manpower in its APR petition for 2017 – 2018 in line with the observation

stated in paragraph 5.3.1(d)(iii) above.

e) Where the past CAGR of expenditure of any above referred elements for the

fourth control period (2014-15 to 2016-17) is lesser than the concerned

inflation rate as provided in table 5A in such case in line with CERC’s

principle 110% (an additional 10% margin over actual growth rate) of such

growth rate is considered as the annual escalation rate for 2017-18 for the

following reasons:

i) to ensure the interest of stakeholders in a more better way from the point

of view of availability considerations of the network asset and different

services;



ii) to provide a comfort to WBSEDCL in carrying out O&M of the assets by

extending an additional insulation against uncertainty arising out of

increased expenditure for any unforeseen reason.

It is to be noted that for the said period the expenditure considered for 2016-

17 is estimated one as derived by the commission based on principles as

discussed before for every item mentioned hereinbefore where actual figures

for 2013-14 to 2015-16 has been taken in general. In certain cases the CAGR

for different period has also been considered where Commission finds that

such decision will provide more rational and better accuracy in the projected

admitted cost.

f) Where the projected expenses by WBSEDCL are less than the estimated

value of 2016-17 and/or the actual value of 2015-16 in such case no

escalation is being allowed for fifth control period 2017-18 and WBSEDCL’s

projection is considered as admitted figure.

g) Where the past data show irrational/asymmetric character in such case

Commission, by applying due prudence, has considered an appropriate

escalation rate which is discussed in relevant portions.

h) Where annual escalation rate or CAGR of past period crosses the concerned

inflation rate of the said past period in such case escalation rate for projected

expenditure due to business volume increase is computed from past trend by

reducing it with the concerned inflation rate of the relevant past period and

that has been explained in the relevant portions. In such case the annual

escalation rate for 2017-18 are as follows:

Annual Escalation Rate (%) for any ensuing year = A+ R × BGR + Ad_F



Where A = Inflation rate (%) based on CPI or WPI or hybrid

(WPI+CPI) index as applicable for the fixed

charge element.

R = Ratio of percentage annual increase in

expenses in the past period and percentage

increase in business volume parameter during

the same period.

BGR = Projected growth rate (%) for the ensuing year

of the business volume parameter to which the

fixed charge element under consideration is

sensitive.

Ad_F = Additional float in % as decided by commission

to provide insulation against uncertainty in

projected inflation or business volume growth.

For such annual escalation rate calculation the annual increase (%) in

expenses as required for calculation of R is decided by commission by taking

the lowest positive CAGR value from among CAGR of 2015-16 to 2016-17

(i.e., annual increase rate) or CAGR of 2014-15 to 2016-17 or CAGR of 2013-

14 to 2016-17 subject to different aspects considering rationality or level of

asymmetric character of past data as has been explained in the relevant

portion. However wherever R on computation is found to be higher than one

then in such case R is considered as not more than 1 as Commission is of

the opinion that rate of increase in expenses due to business volume growth

cannot surpass the rate of increase in business volume parameter unless

there is any specific reason which can be established by the licensee.

Similarly when R is found to be a value between 0.5 and 1 then also in



ensuing year annual escalation rate is further reduced by a small quantum

with an objective of gradual improvement in efficiency of the licensee in

expenditure control by utilizing different resources in a more effective

manner.

Where necessary while computing additional expenditure represented by

(R×BGR) of any element of fixed charge due to increase in business volume

that additional expenditure is modified in a reasonable and rational manner

after taking the impact of above mentioned sensitivity parameter on the

additional expenditure. Details of such modification and any other specific

consideration are illustrated in relevant portion where each element of fixed

charge is dealt with. Additional float of 0.5% has been considered to cover

any expenditure hike due to unforeseen reasons.

i) In line with the principle adopted in the tariff order of WBSEDCL for third and

fourth control period, Commission decides that for the ARR determination in

the tariff order of fifth control period 2017-18 the impact of increase in

business volume on different sub-heads/ heads will also be considered from

the point of sensitivity of the head/sub-heads to certain business volume

parameter. For such purpose in the business process of WBSEDCL there are

two important business volume parameters such as Distribution line length

(DDL) in Circuit Kilometer (CKM) and Consumer strength (CS) expressed as

nos. of consumers. Different elements of fixed charge elements are sensitive

to either of the above two parameters. The table 1 under Annexure 5B shows

the concerned business volume parameter sensitivity against different

elements of the fixed charges.

j) For consumer strength the actual and projected data submitted through

Memo. No. REG/SERC/MYT 5th Control Period/29 dated 12.4.2017 by



WBSEDCL against the query of WBERC against Memo. No. WBERC/TP-

65/16-17/2478 Dated 28.3.2017 has been taken. The data for distribution line

length in CKM for 2012-13 and 2013-14 has been obtained through Memo.

No. PTR/SERC/APR2013-14/953 Dated 10.8.2015 against the query of the

Commission against Memo. No. WBERC/FPPCA-70/14-15/1122 Dated

11.3.2015 and for the CKM for 2014-15 and 2015-16 the data furnished by

WBSEDCL through Memo. No. REG/SERC/MYT 5th

Table III

Control Period/120

dated 3.7.2017 against the query of the Commission against Memo. No.

WBERC/TP-65/16-17/2478 Dated 28.3.2017 has been used in this Tariff

Order. Since WBSEDCL failed to provide/project data for 2016-17 and 2017-

18 in the same Memo. No dated 3.7.2017 the CAGR of Line growth for the

period 2013-14 to 2015-16 showing consistent growth at 5.50% has been

considered based on yearly increase as shown below:

Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Consumer Strength (no.) 12096209 13686767 15103459 16364129 17408826 18343320Increase(%) in Consumer strength 13.15 10.35 8.35 6.38 5.36Distribution line length in CKM 408417 492046 522854 547653 575035.65 603787.43Increase(%) in line length 20.48 6.26 4.74 5.00 5.00

In pursuance to regulation 8.1 of the Tariff Regulations while projecting the

above figure following considerations have been taken:

� The value related to 2016-17 on distribution line length parameters has

been estimated by using the CAGR of growth on this parameter during

the period 2013-14 to 2015-16 on the submitted data of 2015-16.

During truing up in Annual Performance Review (APR) of the above ensuing

year of 2017-18 such projected distribution line length in CKM and Consumer



Strength in number as given in table III shall be considered as the basis

against which the expenditure has been admitted during concerned tariff

order and accordingly truing up will be taken up subject to the conditions as

mentioned in paragraph 5.3.7.

k) For computation of projected expenditure by the Commission on different

heads for 2017-18 the base expenditure over which the above escalation

rates are applied has been considered on the estimated expenditure of 2016-

17 made by WBSEDCL and duly modified in some elements by the

Commission as explained in paragraph (e) to (h) above. This is being done

as the application of tariff was submitted before the end of 2016-17 and is not

likely to have perfect accuracy with respect to actual expenditure.

l) Based on the above principle the projected expenditure on above mentioned

different elements of fixed charges for 2017-18 has been computed and then

compared with the claimed amount of WBSEDCL for the said year and

whichever is lower is being admitted in this tariff-order.

m) The recent trend of the distribution loss and AT& C losses as provided by

WBSEDCL is as follows:

PERFORMANCE/PROJECTED PERFORMANCE TREND OF WBSEDCLPARAMETERS UNIT 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Distribution loss in % % 25.40 27.96 27.60 27.74 25.83 17.50

AT & C loss in % % 31.56 30.51 29.95 29.84 27.31 19.15

The Commission feels that WBSEDCL is required to improve their overall

performance where losses due to technical reasons cannot be a major issue

as for the last few years, since inception of APDRP, lot of technical

intervention has been done through the above and RADPRP projects to



reduce the technical losses. In the background of such initiatives it is natural

that WBSEDCL must have taken adequate technical measures in rural

electrification programme besides trying to keep the technical losses within a

reasonable limit so that normative target of WBSEDCL‘s distribution loss

could be achieved. For the last few years the Commission has approved

expenditure with reasonable rate of increase but without any tangible gain as

seen from the last few years’ distribution and AT&C losses. The estimation of

WBSEDCL for 2016-17 and especially the projection of 2017-18 appears to

be very much optimistic. WBSEDCL need to utilize the resources optimally in

an economical manner minimizing wastes and superfluous expenditure

without compromising quality in any front to attain the targets to be pursued

for 2017-18 and such matter will be taken up during truing up. WBSEDCL

shall take appropriate measures to contain the future retail tariff at reasonable

rate. However in this tariff order after analyzing the different escalation rate

computed for activities which has direct impact on distribution & AT&C loss

such as repair maintenance and related controllable heads as line and

substation maintenance (except manpower & vehicle hiring cost)) , meter

reading and bill distribution function, whenever it is found that the computed

escalation rate by WBSEDCL is at sub-inflationary level or at a meager level

of inflation then Commission provided an additional float to provide a comfort

to WBSEDCL to meet unforeseen exigencies while operating the distribution

network ensuring reduction of distribution losses and AT&C losses.

WBSEDCL shall also take into account that in future such type of comfort

may not be further extended as simultaneous increase in distribution loss /

AT & C loss as well as continuous increase in expenditure in repair

maintenance related heads is to be treated as wasteful and therefore to be

pruned accordingly.



5.3.2 Operation and Maintenance (O&M) Expenses :As per regulation 5.7 of the Tariff Regulation the components of Operation and

Maintenance (O&M) expense are as follows:

i) Repair & Maintenance Expenses (R & M)

ii) Administrative and General Expenses which are composed of followings

- Rent and lease charges

- Legal charges

- Auditor’s expenses, which include auditor’s fees, auditor’s expenses and

payment to auditors in any other capacity or for any work which is

necessary to be got done from them and audited.

- Consultancy charges for work which cannot be done in-house or is

uneconomical in doing in-house or is essential to be done from outside

sources except payment to Auditors.

- Other expenses necessary and arising from and ancillary or incidental to

the business of electricity except penalty etc. levied under this Act or any

other Act.

5.3.2.1 Operation and maintenance (O&M) Expenses for generation:

(a) Regulation 2.8.6.1 of the Tariff Regulations, as amended inter-alia specifies

that from 2017-18 norms of O&M expenses for the coal fired and hydro

power station which are under operation or/ and under construction will be

provided in the tariff order of the 1st ensuing year of any control period

applying average inflation rate of last control period on the basis of actual

expenditure of the last available complete year of that last control period but

subject to further condition that Commission may change such basis on

detailed scrutiny after taking into account the application of tariff or APR

where applicable and objections and suggestions on it.



(b) In the note under Form 1.17 submitted in volume-II-B of the Tariff petition

WBSEDCL mentioned that they have claimed the O&M expenses for the

generating stations for 2015-16 at normative level as allowed in ARR. In

absence of the actual figures for O&M expenses for generating stations

during 2015-16, the last available complete period, Commission finds it

suitable to determine the norms of O&M expense for the hydro generating

stations of WBSEDCL for 2017 – 2018 considering an increase of 5%

(CAGR of O&M norms from 2014-15 to 2016-17) over the norms of 2016-

17.

(c) In the petition WBSEDCL claimed O&M Cost of Rs. 398 Lakh as 7 Lakh /

MW with escalation of 5.72% for 55 MW projected Solar Power for 2017-18

as per Renewable Energy Tariff Order Dtd.30.3.2016 .For Tariff Order

2017-18 the Commission does not like to admit any O&M expenditure w.r.t

Solar Plants as these are likely to be covered under Warranty during this

period. At the time of truing up WBSEDCL is directed to come up with the

actual audited figures of expenditure with necessary contract details.

Commission will decide during truing up in APR the amount admissible, if

any, based on the documents submitted by WBSEDCL as per the

provisions of Tariff Regulations.

(d) Accordingly Commission admits an amount of Rs. 4942.59 lakh as

operation and maintenance expenditure for generating stations of

WBSEDCL. The details are shown below:

Stations Installed capacity

Admitted O&M Cost per MW Admitted O&M cost2 0 1 7 – 2 0 1 8 2 0 1 7 – 2 0 1 8

Name of HEP in MW Rate per MW Rs LakhRammam 51 11.21 571.83Jaldhaka HEP 44 16.14 710.12PPSP 900 2.49 2239.47Small Hydro 89 15.97 1421.16Total hydro 1084 4942.59



Solar 32.5 0Total 4942.59

5.3.3 O&M Expenses for Distribution: Based on the laid down principle in paragraph

5.3.1 above following different sub-heads of O&M function in distribution are

determined. In this context table 2 in Annexure 5B may be referred to for the past

trend of expenditure.

a) Repair & Maintenance (R&M) Expenditure and Rent and Auditor’s Fees:For these elements, the past escalation rate is CAGR of 2015-16 to 2016-17

being the lowest positive among the three relevant CAGR for respective

periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17) ..

The hybrid inflation for the same period i.e. 2015-16 to 2016-17 has been

considered to give effect to the formulation as explained at para 5.3.1.h

above. Such CAGR of expenditure being higher than the corresponding

inflation for the relevant period, the inflation rate has been considered to be

factored with CAGR of volume growth i.e. Distribution Line Length (DLL) as

considered for 2017-18. An additional float is also considered as 0.5% in

order to provide insulation against uncertainty of any expenditure hike due to

any unforeseen reason. Then by using such escalation rate in the

methodology as mentioned in sub-paragraph (h), (k) and (l) of Paragraph

5.3.1 the values found for ensuing year of 2017-18 is given in Table I. While

applying the methodology under sub-paragraph (h) of Paragraph 5.3.1 the

additional float is considered as 0.5% in order to provide insulation against

uncertainty in any expenditure hike due to any unforeseen reasons and also

to cover the additional margin as mentioned in sub-paragraph (e) of

paragraph 5.3.1. The admitted tariff 2017-18 for R&M expenditure

accordingly comes to Rs.32423.72 lakh, for Rent Rs.1250 lakh and Auditor’s

Fees Rs.215.86 Lakh.



b) Other administrative and General Expenses: For this head of expenditure,

the lowest positive CAGR for the period 2014-15 to 2016-17 has been

selected being the lowest positive among the three relevant CAGR for

respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to

2016-17). .. The hybrid inflation for the same period i.e. 2014-15 to 2016-17

has been considered to give effect to the formulation as explained at para

5.3.1.h above. Such CAGR of expenditure being higher than the

corresponding inflation for the relevant period, the inflation rate has been

considered to be supplemented with CAGR of volume growth i.e. Consumer

Strength (CS) as considered for 2017-18. An additional float is also

considered as 0.5% in order to provide insulation against uncertainty of any

expenditure hike due to any unforeseen reason. Then by using such

escalation rate in the methodology as mentioned in sub-paragraph (h), (k)

and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 are

given in Table I..Accordingly, the admitted values found for ensuing year of

2017-18 is given in Table I which comes to Rs.12985.06 Lakh This being a

controllable item the matter in detail will be taken up alongwith similar cases

during truing up. For better scrutiny over the issue the WBSEDCL is directed

to present element wise audited detailed expenditure against this broad head.

c) Legal Charges: For this element, CAGR of 2015-16 to 2016-17 has been



2016-17). The hybrid inflation for the same period i.e. 2015-16 to 2016-17

has been considered to give effect to the formulation as explained at para

5.3.1.h above. Such CAGR of expenditure being higher than the


considered to be supplemented with CAGR of volume growth i.e. Consumer

Strength (CS) as considered for 2017-18. An additional float is also



considered as 0.5% in order to provide insulation against uncertainty of any

expenditure hike due to any unforeseen reason. Then by using such


and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 are

given in Table I. The admitted value for Legal Charges comes to Rs.619.09

Lakh. This being controllable item the matter in detail will be taken up

alongwith similar cases during truing up. Detailed classification of cases and

related cost involved and measures taken to prevent avoidable litigation may

please be submitted with APR Petition with last 5 years data.

d) Thus the admitted expenditure under the heads of Repair & Maintenance

Expenditure and A&G Expenses are as follows (for detailed computation vide

Annex 5B):

Rs. in lakh

5.3.4 Other Items:

a) Expenditure for Lease Rental Line: For this element annual escalation rate

of 2015-16 to 2016-17 has been selected being the lowest positive among

the three relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15

to 2016-17 and 2015-16 to 2016-17). The WPI inflation for the same period

i.e. 2014-15 to 2016-17 has been considered to give effect to the formulation

as explained at para 5.3.1.h above. Such CAGR of expenditure being higher

than the corresponding inflation for the relevant period, the inflation rate has

Table 5.3.3 -I

Sl No.

Particulars As Claimed by WBSEDCL As Admitted by WBERC2017-18 2017-18

1. Repair & Maintenance Charges 32831.00 32423.722.i. Rent 1604.00 1250.002.ii Auditor’s Fees 277.00 215.862.iii Legal charges 733.00 619.092.iv Other A&G expenses 15733.00 12985.063. A&G expenses (2 i+2ii+2 iii+2iv) 18347.00 15070.01



been considered to be supplemented with CAGR of volume growth i.e.

Distribution Line Length (DLL) as considered for 2017-18. An additional float

is also considered as 0.5% in order to provide insulation against uncertainty

of any expenditure hike due to any unforeseen reason. Then by using such


and (l) of Paragraph 5.3.1 the value for 2017-18 has been found for ensuing

year of 2017-18. It is found from WBSEDCL reply under the Memo. No

REG/SERC/MYT 5th

b) Expenditure for Complaint Management Mechanism: The CAGR of

expenditure under complaint management is negative for all the periods

under fourth control period as computed by WBERC and shown at table 2 of

Anne 5B. As such in line with 5.3.1 (g) (e) (k) and (l) the amount admitted is

Rs.297.98 Lakh. This element will be considered as controllable factor during

truing up in fifth control period 2017-18 as the initial period required after

introduction of such scheme is over and the fluctuations have been stabilized.

Control Period/ 29 Dt.12.4.2017 that during 2015-16, 9

nos. Customer Care Center and 3 nos. Divisional Office and 2016-17, 8 nos.

Customer Care Center with no addition of Divisional Office and 2017-18, 16

nos. Customer Care Center and 2 nos. Divisional Office were added or to be

added to the existing WBSEDCL System .Thus there is marginal growth in

the head of expenditure as envisaged. Accordingly, the value admitted for

2017-18 is Rs.2225.60 lakh and provided in the table-1 of Annex 5B. While

submitting APR application, summarized statement of the lease rental bill that

has been paid for primary and secondary lease lines and provision made (In

detail) are to be submitted along with names of location that has been

covered through lease line records.

c) Expenditure for Rates and taxes: For this element the past escalation

trend has been taken from CAGR of 2014-15 to 2016-17. CAGR for the



period 2014-15 to 2016-17 has been selected being the lowest positive

among the three relevant CAGR for respective periods (2013-14 to 2016-17,

2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for the

same period i.e. 2014-15 to 2016-17 has been considered to give effect to

the formulation as explained at para 5.3.1.h above. Such CAGR of

expenditure being higher than the corresponding inflation for the relevant

period, the methodology as mentioned in sub-paragraph (h), (k), (l) of

Paragraph 5.3.1 has been followed and the admitted values found for 2017-

18 comes to Rs. 8064.35 Lakh and given in Table 1 of Annex 5B.

d) Expenditure for Insurance: The trend of actual expenditure under the head

in previous years is very erratic. Here, the CAGR for the period 2013-14 to

2016-17 has been selected being the lowest positive among the three

relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-

17 and 2015-16 to 2016-17). The hybrid inflation for the same period i.e.

2013-14 to 2016-17 has been considered to give effect to the formulation as

explained at para 5.3.1.h above. Such CAGR of expenditure being higher



Distribution Line Length (DLL) as considered for 2017-18. The methodology

as mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 has been

followed. Accordingly the admitted amount for 2017-18 has been found out as

Rs.1003.17 Lakh and provided in the table 1 of Annnex5B.

e) The admitted amount in the ensuing years of the fifth control period 2017-18

for the above four uncontrollable expenditure in comparison to the claim of

WBSEDCL has been given in the table 5.3.4-I below (For detailed

computation vide Annex 5B):



Sl No.

Expenditure Head As Claimed by WBSEDCL

As admitted by WBERC

2017-18 2017-181. Lease Rental Line 6123 2225.602. Complaint Management Mechanism 351 297.983. Rates & Taxes 14407 8064.354. Insurance 1128 1003.17

5.3.5 Outsourcing Expenditure (except manpower and vehicle hiring Cost): Under

this head the expenditures which are controllable in nature have been

considered. Under this head there are a number of elements for which the

expenditure for 2017-18 has been computed by the Commission as detailed out

below:

a) Expenditure for Data Ware Housing and Franchisee Cost :

(i) Data Warehousing: For data ware-housing the CAGR of Expenditure is

negative for the period 2013-14 to 2016-17 and 2014-15 to 2016-17 while the

CAGR for the Period 2015-16 to 2016-17 is zero. This signifies that while in

the earlier period the expenditure for Data warehousing, being the cost of

maintaining data repository for call center and other consumer service as

stated by WBSEDCL in Form 1.17(k) submitted with the Tariff Petition, was

higher, gradually the expenditure on this head has been reduced. As such

Commission finds it suitable to admit the amount of Rs 0.40 lakh under this

head as per the actual expenditure during 2015-16.

(ii) Franchisee cost: CAGR of 2015-16 to 2016-17 has been selected being

the lowest positive among the three relevant CAGR for respective periods

(2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17). The CPI

inflation for the same period i.e. 2015-16 to 2016-17 has been considered to

give effect to the formulation as explained at para 5.3.1.h above. Such CAGR

of expenditure being higher than the corresponding inflation for the relevant



period, the inflation rate has been considered to be supplemented with

CAGR of volume growth i.e. Consumer Strength (CS) as considered for

2017-18. The admitted amount in line with the principle laid down in sub-

paragraph (h),(k) and (l) of paragraph 5.3.1 comes to Rs.674.71 Lakh as

detailed in Annex 5B.

b) Expenditure for Meter Reading & Bill Distribution, Collection franchisee and Line & substation maintenance(excluding Manpower) and LT Mobile Maintenance-MCSU (excluding Manpower), Back Office Job :

(i) Meter Reading and Bill Distribution - Here, the CAGR for the period

2014-15 to 2016-17 has been selected being the lowest positive among the

three relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to

2016-17 and 2015-16 to 2016-17). The CPI inflation for the same period i.e.





Consumer Strength (CS) as considered for 2017-18. The methodology as

mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1. has been

followed. Accordingly the admitted amount for 2017-18 has been found out as

Rs.10034.35 Lakh

(ii) HT Line and Substation Maintenance (other than Manpower and vehicle): For this head of expenditure, the CAGR for the period 2014-15 to



17 and 2015-16 to 2016-17). The hybrid inflation for the same period i.e.







Distribution Line Length (DLL) as considered for 2017-18. An additional float

is also considered as 0.5% in order to provide insulation against uncertainty

of any expenditure hike due to any unforeseen reason. Then by using such


and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 is

given in Table I. Accordingly, the admitted values found for ensuing year of

2017-18 is given in Table I which comes to Rs. 4671.72 Lakh for HT Line and

Sub Station Maintenance (excluding Manpower).

(iii) LT Mobile Maintenance-MCSU (excluding Manpower & Vehicle)- As

noted in subparagraph (d)(iii) of paragraph 5.3.1 WBSEDCL authority has

failed to capture data properly in Manpower and Other than Manpower

heads. As a result CAGR of expenditure on this head for the fourth control

period could not be computed. For this head of expenditure, the CAGR for

the period 2015-16 to 2016-17 has been selected being the lowest positive

among the three relevant CAGR for respective periods (2013-14 to 2016-17,

2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for the

same period i.e. 2015-16 to 2016-17 has been considered to give effect to

the formulation as explained at para 5.3.1.h above. Such CAGR of

expenditure being higher than the corresponding inflation for the relevant

period, the inflation rate has been considered to be supplemented with CAGR

of volume growth i.e. Consumer Strength (CS) for 2017-18. An additional

float is also considered as 0.5% in order to provide insulation against

uncertainty of any expenditure hike due to any unforeseen reason. Then by

using such escalation rate in the methodology as mentioned in sub-



paragraph (h), (k) and (l) of Paragraph 5.3.1 the values found for ensuing

year of 2017-18 is given in Table I..Accordingly, the admitted value found for

ensuing year of 2017-18 is given in Table I which comes to Rs. 4945.05

Lakh.

(iv) Collection Franchisee- For this head of expenditure, the CAGR for the

period 2015-16 to 2016-17 has been selected being the lowest positive

among the three relevant CAGR for respective periods (2013-14 to 2016-

17, 2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for

the same period i.e. 2015-16 to 2016-17 has been considered to give

effect to the formulation as explained at para 5.3.1.h above. Such CAGR

of expenditure being higher than the corresponding inflation for the

relevant period, the inflation rate has been considered to be

supplemented with CAGR of volume growth i.e. Consumer Strength (CS)

for 2017-18. An additional float is also considered as 0.5% in order to

provide insulation against uncertainty of any expenditure hike due to any

unforeseen reason. Then by using such escalation rate in the

methodology as mentioned in sub-paragraph (h), (k) and (l) of Paragraph

5.3.1 the values found for ensuing year of 2017-18 are given in Table I.

The admitted amount under this heads comes to Rs. 1779.73 Lakh

(v) Expenditure for Back office job: For this element the CAGR of

expenditure for the period 2015-16 to 2016-17 has been considered

showing the recent trend as discussed in subparagraph (d) (v) of

paragraph 5.3.1. This period also includes the expenditure of the recent

actual for 2015-16. On this basis since the escalation rate has been

found to be less than the Hybrid inflation rate for the concerned period

the methodology in subparagraph (e), (k) and (l) of paragraph 5.3.1 has



been followed for the purpose of projection. The admitted figure comes

to Rs.176.00Lakh.

C. Expenditure on Security Expenses & Call Center (other than Manpower):

(i). Call Center (ZCC/CRC) -(Other than Manpower) : CAGR of 2014-15 to



17 and 2015-16 to 2016-17). The Hybrid inflation for the same period i.e.





Consumer Strength (CS) as considered for 2017-18. The admitted amount in

line with the principle laid down in sub-paragraph (h),(k) and (l) of paragraph

5.3.1 comes to Rs.319.96 Lakh as detailed in Annex 5B.

(ii) Security Expenses (Other than Manpower): CAGR of 2015-16 to 2016-

17 has been selected being the lowest positive among the three relevant

CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and

2015-16 to 2016-17). The Hybrid inflation for the same period i.e. 2015-16 to

2016-17 has been considered to give effect to the formulation as explained at

para 5.3.1.h above. Such CAGR of expenditure being higher than the


considered to be supplemented with CAGR of volume growth i.e. Distribution

Line Length (DLL) as considered for 2017-18. The admitted amount in line

with the principle laid down in sub-paragraph (h), (k) and (l) of paragraph

5.3.1 comes to Rs.393.80 Lakh as detailed in Annex 5B.



5.3.6 Outsourcing Expenditure (manpower and vehicle hiring Cost): Under

this head there are four number of elements namely, Security expenses, Call

Centre (as per SOP Regulations), HT Line and Substation Maintenance

(Manpower & Vehicle) and LT Mobile Maintenance-MCSU (Manpower &

Vehicle). WBSEDCL has not furnished data for such heads of expenditure

separately under Manpower and Without Manpower. As has been mentioned

above in subparagraph (d) (iii) of paragraph 5.3.1, it is directed to furnish

classified audited data under Manpower and Other than Manpower at the

time of truing up against all this individual heads.

(i) Call Centre (ZCC/CRC)-Manpower Related: CAGR of 2014-15 to 2016-

17 has been selected being the lowest positive among the three relevant

CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and

2015-16 to 2016-17). The Hybrid inflation for the same period i.e. 2015-16 to

2016-17 has been considered to give effect to the formulation as explained at

para 5.3.1.h above. The inflation rate being higher than the lowest positive

CAGR of expenditure for 2014-15 to 2016-17 the admitted amount in line with

the principle laid down in sub-paragraph (e),(k) and (l) of paragraph 5.3.1

comes to Rs.2385.78 Lakh as detailed in Annex 5B.

(i) HT Line and Substation Maintenance (Manpower & Vehicle): For this

head of expenditure, the CAGR for the period 2014-15 to 2016-17 has been



2016-17). The CPI inflation for the same period i.e. 2015-16 to 2016-17 has

been considered to give effect to the formulation as explained at para 5.3.1.h



supplemented with CAGR of volume growth i.e. Distribution Line Length

(DLL) for 2017-18. An additional float is also considered as 0.5% in order to



provide insulation against uncertainty of any expenditure hike due to any

unforeseen reason. Then by using such escalation rate in the methodology

as mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the value

found for ensuing year of 2017-18 is given in Table I which comes to

Rs.13081.89 Lakh.

(ii) Security Expenses-Manpower Related: For this head of expenditure,

the CAGR for the period 2014-15 to 2016-17 has been selected being the

lowest positive among the three relevant CAGR for respective periods

(2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17). .. The

CPI inflation for the same period i.e. 2014-15 to 2016-17 has been

considered to give effect to the formulation as explained at para 5.3.1.h



supplemented with CAGR of volume growth i.e. Distribution Line Length

(DLL) for 2017-18. Then by using such escalation rate in the methodology as

mentioned in sub-paragraph (e), (k) and (l) of Paragraph 5.3.1 the value

found for ensuing year of 2017-18 is given in Table I which comes to The

total amount admitted for Security Expenses is Rs.2905.40 Lakh.

(ii) LT Mobile Maintenance-MCSU (Manpower and Vehicle): For this head

of expenditure, the CAGR for the period 2015-16 to 2016-17 has been



2016-17). The CPI inflation for the same period i.e. 2015-16 to 2016-17 has

been considered to give effect to the formulation as explained at para 5.3.1.h



supplemented with CAGR of volume growth i.e. Consumer growth (CS) for

2017-18. An additional float is also considered as 0.5% in order to provide



insulation against uncertainty of any expenditure hike due to any unforeseen

reason. Then by using such escalation rate in the methodology as

mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the values

found for ensuing year of 2017-18 is given in Table I which comes to

Rs.9415.01 Lakh. Based on the above discussion the admitted amount in

respect of Outsourcing Expenditure for the ensuing year 2017-18 of fifth

control period has been placed in the table below (For detailed computation

vide Annex 5B).

Rs in lakh

Sl No Expenditure Head

As claimed by WBSEDCL for 2017 -2018 As admitted by WBERC for 2017 - 2018

Excluding Manpower &

vehicleManpower & Vehicle Total

Excluding Manpower &

vehicleManpower &

Vehicle Total

1 HT Line Maintenance and Sub Station

Maintenance4952.00 13698.00 18650.00 4671.72 13081.89 17753.61

2 LT Maintenance 5265.00 9930.00 15195.00 4945.05 9415.01 14360.06

3 Data Ware-housing 0.50 0.50 0.40 0.40

4 Back office Job 223.00 223.00 176.00 176.00

5 Franchisee Cost 703.00 703.00 674.71 674.71

6 Meter Reading & Bill Distribution 12942.00 12942.00 10034.35 10034.35

7 Collection Franchisee 2475.00 2475.00 1779.73 1779.73

8 Security Expenses 460.00 3392.00 3852.00 393.80 2905.40 3299.20

9 Call Center 328.00 2422.00 2750.00 319.96 2385.78 2705.74

TOTAL 27348.50 29442.00 56790.50 22995.72 27788.08 50783.80



5.3.7 It is to be noted that the estimated expenditure as determined by the

Commission for 2016-17 against any head or subheads as discussed above in

sub paragraph (i) to (ix) of paragraph 5.3.1(d) has been considered as base year

expenditure for those heads for tariff determination purpose. In case any of such

estimated expenditure made by the Commission is found to be less than the

audited actual expenditure for 2016-17 vis-à-vis business volume parameter

increases then the consequential impact on the projected expenditure against

concerned heads/sub-heads for the period 2017-18 will be passed through tariff

in APR of concerned year separately irrespective of whether such item is

controllable factor or uncontrollable factor. During truing up exercise in APR of

the concerned year the estimated expenditure of all the elements of different

heads as mentioned in paragraph 5.3.1 (d) above for 2016-17 are to be

considered as has been incurred against the actual value of the business volume

parameter (i.e., DLL or consumer strength) that has been achieved at the end of

2016-17. In case the actual value of DLL or consumer strength in 2016-17 is

found to be higher than the estimated value that has been considered for 2016-

17 in this tariff order then impact of such enhanced amount will be added to the

projected value of DLL or Consumer strength for the period 2017-18 of the tariff

order to find out the target business volume parameter against the projected

expenditure that has been admitted in the tariff order. On the basis of such

revised targeted business volume parameter the truing up exercise in APR will be

done specially while applying the regulation 2.6.10(v) of the Tariff Regulations.

5.3.8 Total Operation and maintenance Expenses:

Sl No Particulars As Claimed

by WBSEDCLAs Admitted by WBERC

(i) Operation & Maintenance for Generation 5340.00 4942.59(ii) Repair & Maintenance for Distribution 32831.00 32423.72(iii) Administrative & General Expense for distribution 18347.00 15070.01(iv) Lease Rental Line 6123.00 2225.60



(v) Complaint Management Mechanism 351.00 297.00(vi) Insurance 1128.00 1003.17(vii) Rates & Taxes 14407.00 8064.35(ix) Outsourcing function for Distribution related to O&M

(a) Excluding manpower related cost & hiring of vehicle 56790.00 22995.72(b) Limited to manpower related cost & vehicle hiring cost 27788.08

TOTAL (i) to (ix) 135317.00 114811.22

5.4 Employee Cost:

5.4.1 WBSEDCL has projected the employee cost for 2017-18 as Rs. 151746 lakh. On

this projected cost the Commission has also noted the following submissions of

WBSEDCL.

a) In the back drop of growing consumer strength and augmentation of the

distribution infrastructure, WBSEDCL has planned to augment its

manpower strength during the period from 2016-17 to 2017-18 in order to

ensure smooth execution of the activities pertaining to electricity distribution

with an overall aim to improve the quality of supply to the end users. Such

manpower plan forms the basis of projection of employee expenses of

WBSEDCL of 2016-17 to 2017-18.

The total amount of employee cost projected by WBSEDCL in respect of

own employees on contract in regular establishment for the 2017-18 of the

concerned control period on the basis of Form 1.17(h) and E(T) is

furnished in the table below. As mentioned in such Form 1.17 (h),

employees on contract in regular establishment is included in the cost of

outsourcing.

Year No. of total employees

Amount(Rs. in lakh)

2017-18 16363 151746



WBSEDCL made the following projection of the no of Employees for the years

2015-16,2016-17 and 2017-18 in the Form1.17(h) submitted with the Tariff

Petition for 2017-18.

For 2015-16 the figure is 14991, for 2016-17 the figure is 15413 nos. as derived

from Annex II of the Reply of WBSEDCL under Memo. No. REG/SERC/MYT 5th

Particulars

Control Period/29 Dated 12.04.2017 and for 2017-18 the figure is 16363 nos. It

may also be noted that for 2017-18 the figure of Recruitment has been

considered as balancing figure in the absence of specific confirmation from

WBSEDCL and on the basis of the said Reply of WBSEDL and declaration in

Form 1.17(h). Average number of employee is shown in the following table:

2015-16 2016-17 2017-18Number of Employee at the beginning of the year 15790 14991 15413Recruitment during the year 1510 1881Retirement during the year 1088 931Number of Employee at the end of the year 14991 15413 16363Average number of employees considered 15391 15202 15888

b) WBSEDCL have considered implementation of the 7th Pay Commission.

c) A 3% growth rate per annum has been considered for the Basic Pay based

on the actual annual increments of the WBSEDCL employees.

d) Other employee expenses are projected in proportion to the manpower

strength.

e) For projection of terminal benefit expenses it has been stated that the

employee terminal benefit expenses has been calculated on the actuarial

valuation of pension, gratuity and leave encashment benefits. As per the

actuarial valuation done on 30th September 2016, the projected pension

and gratuity liability will increase at a CAGR of 3.23% from 2016-17. Hence,

for the purpose of projections, the same growth rate of 3.23% per annum is



considered by the Commission over the terminal benefit expenses for 2016-

17 to get the figures for FY 18. A 15% increase is considered by WBSEDCL

during 2016-17 over 2015-16. The Commission is not allowing such hike on

projection and will consider during truing up for the year 2017-18.

5.4.2 On the basis of the actuals submitted by WBSEDCL for the year 2015-16 the

estimate submitted by WBSEDCL for 2016-17 has been revised by the

Commission based on the average no. of employees projected for 2016-17

considering necessary hike of 3% in basic and relevant hike for DA etc over

actual of 2015-16 except the point of retirement benefit where the Commission

likes to maintain the 3.23% increase as per their actuarial valuation as noted in

5.4.1(e) above.

5.4.3 For the purpose of projection of employee cost for the year 2017-18, the

Commission likes to proceed considering the average no of employees of 2016-

17 and factoring increment of 3% on basic with DA @139%.alongwith Other

Allowance as the same percentage on basic as found in actual of 2015-16 and

prorating it to the average no of employees of 2017-18. Terminal benefit is given

the same increase of 3.23% as noted in 5.4.1(e) above on the estimate of

WBERC for 2016-17. For the elements of bonus and ex-gratia, LTC, leave

encashment, welfare expense, medical, compensation, GRP Scheme and others

cost per employee has been prorated on average no of employees of 2016-17

applied for Projection of 2017-18.The claim for Liveries and Leave Encashment

for 15 days have been maintained as claimed by WBSEDCL considering

reasonable as per Commission’s projection. For the purpose of capitalization, the

same proportion of capitalization to total cost as observed by WBSEDCL in their

projection for 2017-18 has been accepted by the Commission.



5.4.4 The function wise break up in total of employee cost including terminal benefits

and Director Fees etc. as admitted by the Commission for the year 2017-18 are

as follows (For detailed computation vide Annex 5C).:

Type of Cost 2017-18Generation Distribution Total

Salary and Wages including other staff welfare benefits 3202.07 69720.84 72922.91

Terminal Benefit 2091.05 59246.31 61337.36Total Employee cost 5293.12 128967.15 134260.27

The function wise allocation between generation and distribution is being done

on the basis of same proportion as has been done in the proposal of

WBSEDCL.

5.5 Depreciation:

While examining the Depreciation schedule in Form B against the claim of

WBSEDCL amounting to Rs.69810 Lakh, the Commission observed certain

inconsistencies as –

1. No growth has been shown for Metering Assets since 2016-17 to 2017-18

while there is a projection of consumer growth during the same periods

as-.

2015-16 2016-17 2017-18

Value of Metering Asset (Rs.Lakh)

166251 166251 166251

Consumer strength (No)

16364129 17408826 18343320

2. Generating asset of value Rs.8572 lakh has been shown as fully

depreciated in 2015-16, but the same asset has again been perpetually



considered in the years 2016-17 and 2017-18 at the time of computing

depreciable asset.

3. There are several casting errors in Form B for respective class of Assets

and corresponding category of depreciation rates besides mismatch

between the rate used for a category of asset and corresponding

depreciation calculated in Form B.

In view of above, the Commission made its own projection for the purpose of

Depreciation as narrated in the following paragraph.

The summation of actual total value of Assets as classified into different

categories of depreciation rates for respective Asset class as on 31.3.2016 for

Rs 21,06,066 Lakhs has been considered as base for the purpose of

calculation of Depreciable Asset base for 2016-17. Addition of assets during

2016-17 for Rs 1,49,655 Lakhs as estimated by WBSEDCL has been

considered while arriving at the total base of depreciable assets in 2016-17 for

the relevant Asset class. In Form B no Asset has been shown as fully

depreciated for 2016-17. The total depreciable asset base thus arrived at for

2016-17 has been segregated into respective asset category based on

depreciation rates applicable to each category of assets in the same

proportion as per WBSEDCL estimation for 2016-17 in Form B. WBSEDCL

has estimated a growth of assetization in 2017-18 which is 83% higher than

2016-17 . In absence of any detailed justification for such projected rate of

assetization, the Commission took the CAGR of actual assetization for the

period 2012-13 to 2015-16 and projected the assetization for 2017-18 based

on the estimate of assetization made by WBSEDCL for the period 2016-17.

Thus the total Depreciable Asset for 2017-18 comes to Rs 24,24,832 Lakhs.

considering addition of fixed assets during 2017-18 for Rs 1,69,111 Lakhs



which has been segregated into respective asset category based on

depreciation rates applicable to each category of assets as per proportion

derived from WBSEDCL projection for 2017-18 in Form B .In Form B no Asset

has been shown as fully depreciated for 2017-18. Depreciation has been

calculated on the asset base of 2017-18 as arrived at above in the same

proportion as projected by WBSEDCL in Form-B for 2017-18.The rate of

depreciation on grant funded asset for 2015-16 actual has been applied on the

Grant Funded Asset for 2017-18 to arrive at the value of depreciation against

grant funded asset. The amount of depreciation for 2017-18 thus arrived at by

the commission comes to Rs. 68055 Lakh. For detailed computation Table 1

and 2 of Annex 5 D may be seen.

In line with the allocation of depreciation submitted in Form B ,the allocation

comes to as below . Detailed computation is placed at Annex 5D -

Rs. Lakh

Commission, however directs to submit the depreciation details segregated

into depreciation for respective Asset class and Depreciation category as on

the opening Asset Base and on the Asset addition separately during the year

while submitting APR as well as while submitting ARR for the next Tariff

Years.

Sl. No. Particulars 2017-18

1 Generation 13942.002 Distribution 47798.173 Metering Asset 4157.514 Other Assets 2157.32

5 Sub-total (Distribution)

54113.00

Total(1+5) 68055.00



5.6 Interest on Bonds for Terminal Benefits to Employees:

Under the West Bengal Power Sector Reforms Transfer Scheme, 2007, as

referred earlier, a 8.5% bond fund (2016) has been created for discharging

pension and gratuity liabilities of the erstwhile WBSEB. An amount of Rs.

1530.00 crores of the total bond amounts of Rs. 1800.00 crores has been kept in

the account of WBSEDCL. The annual interest charges on this amount of bonds

in the accounts of WBSEDCL come to Rs. 13005.00 lakh . WBSEDCL in Para

6.7 of their petition claims Rs.10404 Lakh as interest since they projected an

annual repayment of Rs.30600 Lakh from 2017 onwards in 5 installments .The

same is admitted for ascertaining the Aggregate Revenue Requirement (ARR) for

the year 2017-18. The said Rs. 10404 lakh has been allocated as proposed by

WBSEDCL between generating station and distribution system as per following

table:

Rs. in Lakh

Interest on bond related discharging pension & gratuity liabilitiesGeneration Distribution Total

441 9963 10404

5.7 Interest on capital borrowings:

5.7.1 WBSEDCL inherited an amount of Rs. 302200.00 lakh as borrowed capital as on

31st March, 2006 as shown in Schedule – B of the West Bengal Power Sector

Reform Transfer Scheme, 2007 notified by the Government of West Bengal vide

No: 12-PO/III/3R-29/2006 dated 25.01.2007. Out of this amount of Rs.302200.00

lakh, Rs.194800.00 lakh was from the Government of West Bengal carrying

interest @ 8.5%. The balance amount of Rs.107400.00 lakh is from different

financial institutions and Central Government. WBSEDCL has also drawn fresh

loan for different capital works. WBSEDCL has submitted its projections of



repayment of borrowings, programmes for fresh borrowings as well as the

chargeable amount of interest to the revenue account after considering the

capitalization of interest.

5.7.2 WBSEDCL has projected in Form C interest on capital borrowings net of

capitalization at Rs. 59500.00 lakh for the year 2017-18. This interest amount,

however, includes the interest of Rs. 10404.00 lakh on pension bond. The

interest on Capital Borrowing thus comes to Rs.49096 Lakh as projected by

WBSEDCL.

5.7.3 It is seen from the details of loans and interest thereon submitted in Form – C to

Annexure – 1 that the projected interest for the year 2017-18 includes interest on

fresh loan to be drawn from Banks / FI during the years 2016 – 2017 and 2017-

18.

It also appears from the Perspective Plan submitted by WBSEDCL that the

Proposed Capitalization is for 2016-17 Rs.2734 Lakh and for 2017-18 Rs. 43504

Lakh. The commission finding no detailed COD for the entire capitalization for

2017-18 used the CAGR of the actual assetization of previous years. The CAGR

of assetization for the period 2012-13 to 2015-16 comes to 13% on the basis of

data submitted by WBSEDCL through Form 1.18(a). On the basis of this CAGR

the Commission recast the projection of assetization for 2017-18 which comes to

Rs. 169111.28 Lakh as against the WBSEDCL projection for 2017-18 Rs. Rs.

274000 Lakh. Accordingly the Commission adjusts the status of projection on

drawal, repayment and interest in the ratio of assetization against the fresh loan

for the Year 2017-18 as depicted in Annex 5E. Against the New Project Loan the

Commission made no adjustments for the year 2016-17 as the estimation of

assetization by WBSEDCL for the base year 2016-17 has not been altered by the

Commission.



The Commission admits the claim of WBSEDCL on interest on capital borrowings

for the year 2017-18 with such modifications w.r.t loan on new projects as stated

above with the condition that WBSEDCL shall furnish the details and purpose of

the new loans with supporting documents along with their APR applications for

2017-18 failing which no interest on such loans will be considered and the

interest admitted will be proportionately adjusted from future tariff.

Rs. in Lakh

Details of Interest on Capital Account

Source of Loan Claimed AdmittedMarket Bond 75 75.00Capital Bond 10095 10095.00PFC 2715 2715.00REC 23763 23763.00New Project Loan 16246 14045.74Total Interest 52894 50693.74Less Capitalized 3798 3640.01Net of Capitalization 49096 47053.73

5.7.4 The allocation of interest between generation and distribution has been done in

the same ratio as proposed by WBSEDCL based on the purpose of the loan and

its utilization (For detailed computation vide Annex 5E).

Rs. in lakh

Sl. No Particular Amount as Admitted2017-18

1 Generation 5089.002 Distribution 41964.733 Total 47053.73

WBSEDCL is directed to submit the scheme wise details of the loan taken during

2017-18 in the APR for 2017-18 as directed in paragraph 5.7.3 of this order. It is

also directed to submit loan wise details of Capital WIP, Assetisation, Interest

paid and interest capitalized for each year since 1.4.2007.



5.8 Other Finance Charges:

The estimation of other finance charges as submitted by WBSEDCL in specified

format 1.17(c) is for a total amount of Rs. 2420 lakh for 2017-18. The actual

expense for 2015-16 was 2192.00 lakh. Considering the same the other finance

charges consisting of guarantee commission and Bank charges are admitted as

proposed by WBSEDCL. It is observed from the past data that there has been a

significant increase of expenses from Rs 712 lakhs in 2012-13 to 2192 lakhs in

2015-16 as per actual for these years under this head. WBSEDCL while

projecting for 2017-18 has considered a figure of 2420 lakh following the same

trend and has not clarified such hike. However, WBSEDCL shall submit details of

such expenditure while submitting APR, based on which the matter will be

reviewed. The admitted amount is considered for Rs 2420 lakh. The cost

allocations for distribution and generation function are done in the same

proportion as projected in the MYT application.

Rupees in LakhYears Generation Distribution Total

2017-18 36 2384 2420

5.9 Bad Debts:

WBSEDCL has projected Bad Debt Rs.2500 Lakh for 2017-18. In Para 6.14 of

the Petition they have stated 2481 Lakh for waiver of dues of Water Resource

Development Department and referred to Annexure 17 of Appendix A. On

examination of the Annexure 17 no specific details for such proposal of waiver

can be seen. The Commission, thus, does not consider any amount under the

head bad debt for ensuing year 2017-18 under the fifth control period . In case

any bad debt is actually written off in any year, WBSEDCL shall claim the same

as per provision of regulation 5.10.1 of the Tariff Regulations in their APR

application for the concerned year.



5.10 Minimum Alternate Tax

WBSEDCL has not made any claim against Minimum Alternate Tax but the

Return on Equity in form1.22 shows consideration of tax element to arrive at the

effective rate of ROE. In Regulation 5.6.1.1 it is clearly stated that the Return on

Equity shall be calculated on pre tax basis and actual income tax liability related

to the core business only will be allowed separately on actual payment basis

subject to final assessment. Subject to compliance with the Regulation during

truing up, the Commission admits the amount of MAT as 21.3416% of ROE to

the tune of Rs.7946.80 Lakh.

5.11 Interest on Consumers’ Security Deposits

WBSEDCL has claimed towards interest on consumers’ security deposit of Rs.

11500 lakh for 2017-18.. The actual amount of interest accrued on consumers’

security deposit during 2015-16 as per audited annual accounts was Rs.

10257.00 lakh. In view of the same, the projected value of interest on consumer

security deposit for 2017-18 is admitted as Rs. 11500.00 lakh. The entire amount

is allocated to distribution function. During truing up the amount on this head will

be allowed on actual basis as per Regulation 5.6.5.3.

5.12 Reserve for Unforeseen Exigencies:

WBSEDCL has not claimed any amount under the head reserve for unforeseen

exigencies for the year 2017-18 and the Commission also does not consider to

allow any amount under this head. WBSEDCL is, however, directed to maintain

the funds lying with them as per provision of the regulation 5.24 of the Tariff

Regulations.



5.13 Interest on Working Capital:

WBSEDCL has stated that in accordance with the direction of the Commission in

paragraph 6.11 of the Tariff Order 2008-09, the security deposit of the permanent

consumers (excluding provision for security deposit) during the year 2017-18 has

been considered for utilization as working capital during the respective year and

no amount has been claimed against the head interest on working capital for the

ensuing years. In the form 1.17(b) with the petition WBSEDCL has projected

Rs.190495 Lakh as Normative requirement of Working Capital and projected

Security Deposit Rs.284513 Lakh. The Commission also does not consider any

amount under the head for any ensuing year. This is because the Commission

worked out working capital requirement at Rs.195986.08 Lakh against projected

Security Deposit Rs.284513 Lakh (For detailed computation vide Annex 5F) .The

Commission maintained the projection for consumer for the year 2017-18 as

made by WBSEDCL in Form 2.2 at 18343320 Nos. which includes consumers in

the segments of L&MV,HV and EHV and as such the Projection of Security

Deposit as made by WBSEDCL has been accepted. The necessity of borrowing

working capital, however, cannot be ruled out. If any such borrowing is done, the

interest on that will be considered for re-imbursement through APR for the

concerned year as per Regulation 5.6.5. However, in pursuance of the directive

given in paragraph 6.11 of the Tariff Order 2008-09, the balance of security

deposit over normative working capital shall be properly invested and the earning

from such investment shall be considered as income from non tariff sources.

WBSEDCL is thus directed with APR Petition to submit utilization of the security

deposit duly certified by the Auditor.

5.14 Return on equity:

WBSEDCL has proposed Return on Equity for Rs. 44700 lakh on the average

equity base of Rs. 213094 lakh for the year 2017-18 in Form 1.22. While



computing the normative return, WBSEDCL has considered the return @ 20.98%

on pre-tax basis.

WBSEDCL in their computation of equity base in Form 1.20(a) to Annexure – 1

has shown the admissible equity base at the beginning of the year 2017-18 as

213094.00 lakh .On examination, it appears that WBSEDCL has deducted the

closing net negative surplus at the end of 2015-16 12580.00 lakh from the equity

base of Rs.225674 Lakh.

It also appears from the Accounts for the year 2015-16 that a sum of Rs 225674

lakhs was the Equity Base as on 31.3.2016. It further appears from the form 1.20

(a) of the petition submitted by WBSEDCL that no addition to such equity base

has been projected by WBSEDCL during 2016-17 and 2017-18. Accordingly, the

Commission considered the Equity Base as Rs.225674 Lakh as on 1.4.2017

which would remain at the same figure as on 31.3.2018 due to no further addition

as per submission of WBSEDCL. Accordingly the average Equity Base for 2017-

18 will stand at Rs.225674 Lakh.

The Commission accordingly allowed 16.5% return on the same in terms of Tariff

Regulations. The workings are shown in the following table:

Sl. No. Particulars 2017-18

1 Actual equity base considered at the beginning of the year including free reserve 225674.00

2 Admissible equity base at the beginning of the year 225674.003 Addition to Equity base for the year 04 Actual Equity base at the end of the year [(1) + (3)] 225674.005 Net addition to fixed asset during the year 169111.006 Normative addition to Equity base {30% of (5)} 50733.307 Addition to equity base considered for the year lower of (3) and (6) 08 Admissible equity base at the end of the year (2) + (7) 225674.00

9 Average admissible equity base to be considered for return {(2) + (8)}/2 225674.00

10 Rate of return considered 16.5%11 Return on equity (ROE) 37236.21



5.15 Principal Repayment of Bonds For Creation of Pension Fund:

WBSEDCL in their submission in para 6.6 has stated that, after unbundling of

erstwhile WBSEB, WBSEDCL started functioning from 01.04.20107 on the

strength of notification issued by the Government of West Bengal (GoWB) vide

Notification No.313-PO/O/III/3R-29/2006 dated 19/09/2008. In schedule E of the

notification in was categorically stated that for payment of terminal benefits

(pension & gratuity), Pension Trust Bond on Rs. 1,80,000 lakh is to be issued by

newly formed WBSEDCL (Rs 1,53,000 lakh) and WBSETCL (Rs. 27,000 lakh)

and balance portion of the liability (Rs 3,67,759 lakh less Rs. 1,80,000 lakh) will

be paid by WBSEDCL out of fund inherited from WBSEB and WBSEB ECFP

Trust fund. Accordingly, WBSEDCL issued Pension Trust Bond of Rs. 1,53,000

lakh through private placement which was guaranteed by GoWB towards any

shortfall in payment of annual interest and repayment obligations of the company.

As per terms of the Govt. of West Bengal Notification No.313-PO/O/III/3R-

29/2006 dated 19/09/2008, the Pension Trust Bond is re-payable in 5 equal

annual installments after 10 years of moratorium period and accordingly 1/5th of

Rs.1,53,000 Lakh i.e.Rs.30,600 lakh is due on 1.4.2017 as first installment.

WBSEDCL stated to allow recovery of Rs.30600 lakh through five consecutive

years from the FY 2017-18.

WBSEDCL has not submitted any documents regarding payment of the 1st

installment towards redemption of the bond to this Commission subsequently.

The Commission now allows only 50% of the claim made by WBSEDCL in this

ARR and will consider the balance amount based on the actual documents

regarding payment of the installment at the time of APR based on prudence

check.



5.16 Other Items-WBSEDCL has claimed an amount of Rs.201 Lakh for contingent

expenses like Death/Damage/Injuries and Safety awareness programme. No

amount on this head is being allowed at present by the Commission.

5.17 Income from Non-Tariff Sources

The income from non-tariff sources comprising rental of meters and other

apparatus, delay payment surcharges, interest from investment income etc. has

been projected by WBSEDCL as Rs. 76392 lakh, for 2017-18. The Commission

on examination of details of the elements under this head has reviewed the

projection of WBSEDCL in the case of Meter Rent and Wheeling Charges. In

Meter Rent WBSEDCL claimed an amount of Rs. 51,973.00 lakhs with a

proposal of increasing the meter rent as it was not revised since tariff order 2010-

11. In absence of detail documents, Commission does not allow any increase in

the meter rent and finds it appropriate to continue with the present meter rent.

Hence considering the increase in number of consumers only Commission

admits an amount of Rs 24108 lakh on account of income from meter rent. . For

wheeling charge, the commission admits an amount of Rs. 154.26 Lakh for 13

MU in place of WBSEDCL claim of Rs.174 Lakh (For detailed computation vide

Annex 5G).

Thus the total admitted amount under Income from Non Tariff Sources comes to

Rs.48507.47 Lakh (For detailed computation vide Annex 5H).

5.18 Interest Credit

In terms of regulation 5.5.3 of the Tariff Regulations, WBSEDCL has proposed

Rs. 1389.00 lakh for 2017-18 as interest credit while determining the Net

Aggregate Revenue Requirement for the corresponding year in tariff as the

amount of chargeable depreciation is more than the amount of loan repayable for

that year. As the Loan repayment allowed in this order has been reduced from



the amount projected by WBSEDCL, the Commission computes the amount

afresh based on the depreciation allowed, the projected schedule of repayment

of loan and weighted average rate of interest of borrowings and admits the same

as shown below

Rs. in Lakh

Sl. No. Particulars 2017-181. Depreciation Allowed 68055.462. Repayment as proposed 23105.893. Excess fund created 44949.564. Weighted average rate of interest of existing loan(2017-18) 10.10 %5. Interest Credit admitted by the Commission 4539.07

In absence of any specific proposal from WBSEDCL and information about

break-up of repayment of the loan specific to generation and distribution, the

Commission decides to allocate the same in the proportion to depreciation

allowed to generation (15%) and distribution (85%) for 2017-18 for both proposed

and admitted amounts as shown in the following table subject to final adjustment

on the basis of actual audited data in the APR for the concerned year.

Sl. No. Particulars 2017-181. Generation 681.322. Distribution System 3857.75

3. Interest Credit admitted by the Commission 4539.07

5.19 Transmission charges payable to WBSETCL

WBSEDCL has asked for a provision for amounts of Rs. Rs. 1,10,606.00 lakh in

2017-18 towards transmission charges payable to the State Transmission Utility,

i.e., West Bengal State Electricity Transmission Company Ltd (WBSETCL) .The

Commission has finalized the amount of the Aggregate Revenue Requirement

(comprising of all its fixed charges) of WBSETCL based on the tariff application

submitted by WBSETCL for the concerned year 2017-18 and the same has come



to Rs. 1,25,099.42 lakh in 2017-18, which has been shared between WBSEDCL

and CESC as per their long-term contract with WBSETCL. The particulars will be

available in the Commission’s order in Case No: TP-70/16-17 in regard to

WBSETCL for the year 2017-18. The Commission accordingly allows a sum of

Rs. 1,22,130.76 lakh, payable by WBSEDCL to WBSETCL as transmission

charges during 2017-18.

5.20 CTU Charges

The projection of WBSEDCL on CTU charges is Rs. 66447.00 lakh for the year

2017-18 includes the newly introduced Point of Connection (POC) charge

method by CERC since July,2011 and VARH Charge claimed by PGCIL as per

CERC regulation as noted in paragraph 6.19 of the Petition. They have stated to

have made the projection considering existing trend, expanding net work and

purchase of power from outside State during the year 2017- 2018. The

Commission admits Rs. 66,447.00 lakh on account of CTU charges as proposed

by WBSEDCL. However, the actual amount of transmission charge to be paid to

CTU will be adjusted in APR.

5.21 ERPC Charge

WBSEDCL has projected ERPC charge as Rs.385.00 lakh for the year 2017-18.

From the minutes of 35th

5.22 System operation charges payable to POSOCO

ERPC Board meeting dated 25.02.2017, it is observed

that the charge for ERPC establishment fund and ERPC fund is decided as

Rs.15.00 Lakh and Re.1.00 Lakh respectively. Hence, the Commission admits

Rs.16.00 Lakh as ERPC charges.

WBSEDCL has projected system operation charge payable to POSOCO at Rs.

543.00 lakh for the year 2017-18 at 2015-16 level as shown by audited accounts

which is admitted by the Commission.



5.23 SLDC Charges

WBSEDCL has projected SLDC charges as Rs. 2034.00 lakh for the year 2017-

18..As per Regulation 3(c ) of the West Bengal Regulatory Commission

(Miscellaneous Provisions) Regulation,2017 fees payable by the licensee is

based on estimated electricity to be transmitted by them through intra-state grid

under long term access and medium term open access mode of transmission.

Accordingly, considering the tariff order of WBSETCL for the year 2017-2018 the

payable SLDC charges come to Rs.1862.30 Lakh. The detailed computation is

given below:

Sl. No. Description Unit 1. Energy proposed to be purchased from

outside the StateMU 13841.00

Less CTU loss MU 325.08Sub Total ( A) MU 13515.92

2. Energy to be purchased from within the State, to be injected in STU (B)

MU 23730.00

Total ( A + B) MU 37245.98SLDC Charges @ o.5 paise /kwh Lakh 1862.30

5.24 Adjustment of Amounts received towards Deviation Settlement Mechanism (DSM)

No amount on benefit from DSM is considered as no energy on DSM drawal is

projected by WBSEDCL for the ensuing year under the fifth control period 2017-

18. However, any income from DSM will be viewed on actual basis in the APR for

the respective year as per provisions of the Tariff Regulations.

5.25 Expenses attributable to Sale of energy to persons other than consumers and licensees of the Commission.

The expenses on this head as proposed by WBSEDCL has not been considered

as there is change in power purchase cost than that has been proposed by



WBSEDCL due to number of reasons as explained in this order. As per

paragraph 4.14 of this order, the quantum of sale to persons other than

consumer and licensees is 7165.89 MU, which will remain in the credit of

WBSEDCL for sale to persons other than own consumers and licensees of the

Commission. WBSEDCL shall either sell such power to others or back down

some of the generation. Accordingly the Commission finds it suitable to adjust the

cost of 7165.89 MU power at average power purchase rate of 339.53 paisa/unit.

Thus the revenue to be earned by WBSEDCL out of sale of energy to persons

other than own consumers and licensees comes to Rs. 2,43,303.46 lakh which is

to be deducted from the total amount recoverable by WBSEDCL for the year

2017 - 2018. WBSEDCL is directed to submit the actual sell details during

FPPCA for the purpose of truing up.

5.26 Sharing of benefits from sale of power to persons other than the consumers and licensees of the Commission:

Commission observes that due to volatile market the projections on such sale

have no compatibility at all with the actual of the year. Due to the above reason

the projected tariff will be distorted if any gain sharing is considered on the basis

of such projected sale which ultimately provided an untrue perception in the level

of retail tariff that greatly affects the consumers, the licensees and power sector

as a whole. In order to remove such distortion in the tariff the Commission

decides that in general the benefits from sale of power to person other than the

consumers and licensee of the Commission will be passed on to the consumers /

licensees on actual basis through APR of the concerned year only instead of tariff

order on projection basis.


ANNEXURE – 5A


Monthly Rate of Inflation in CPI number for Industrial Worker (%)Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Average

2011-12 9.41 8.72 8.62 8.43 8.99 10.06 9.39 9.34 6.49 5.32 7.57 8.65 8.422012-13 10.22 10.16 10.05 9.84 10.31 9.14 9.60 9.55 11.17 11.62 12.06 11.44 10.432013-14 10.24 10.68 11.06 10.85 10.75 10.70 11.06 11.47 9.13 7.24 6.73 6.70 9.722014-15 7.08 7.02 6.49 7.23 6.75 6.30 4.98 4.12 5.86 7.17 6.30 6.28 6.302015-16 5.79 5.74 6.10 4.37 4.35 5.14 6.32 6.72 6.32 5.91 5.53 5.51 5.652016-17 5.85 6.59 6.13 6.46 5.30 4.14 3.35 2.59 2.23 1.86 4.45Source : Website of Labour Bureau, GOI : Average Value is being Computed

WPI FROM OFFICE OF ECONOMIC ADVISOR , GOIYear Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2011-12 152.10 152.40 153.10 154.20 154.90 156.20 157.00 157.40 157.30 158.70 159.30 161.002012-13 163.50 163.90 164.70 165.80 167.30 168.80 168.50 168.80 168.80 170.30 170.90 170.102013-14 171.30 171.40 173.20 175.50 179.00 180.70 180.70 181.50 179.60 179.00 179.50 180.302014-15 180.80 182.00 183.00 184.60 185.70 185.00 183.70 181.20 178.70 177.30 175.60 176.102015-16 176.40 178.00 179.10 177.60 176.50 176.50 176.90 177.50 176.80 175.40 174.10 175.302016-17 177.80 180.20 182.90 184.20 183.30 183.20 182.90 183.10 183.20 184.60 185.50

Source : Website of Office of the Economic Advisor, GOI :

MONTHLY INFLATION RATE COMPUTED BASED ON WPI FROM OFFICE OF ECONOMIC ADVISOR, GOI (%)Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average

2011-12 9.74 9.56 9.51 9.36 9.78 10.00 9.87 9.46 7.74 7.23 7.56 7.69 8.962012-13 7.50 7.55 7.58 7.52 8.01 8.07 7.32 7.24 7.31 7.31 7.28 5.65 7.362013-14 4.77 4.58 5.16 5.85 6.99 7.05 7.24 7.52 6.40 5.11 5.03 6.00 5.982014-15 5.55 6.18 5.66 5.19 3.74 2.38 1.77 0.00 0.11 -0.39 -2.06 -2.33 2.152015-16 -2.65 -2.36 -2.40 -4.05 -4.95 -4.54 -3.81 -1.99 -0.73 -0.90 -0.91 -0.85 -2.512016-17 0.34 0.79 1.62 3.55 3.74 3.57 3.39 3.15 3.39 5.25 2.88

Source : Website of Office of the Economic Advisor, GOI :

Tarif

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2013

-14

2014

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2015

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2016

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(Esti

mated

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W

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2016

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(Esti

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PIDL

LE55

629

627

935

840

237

539

3.80

460

23Se

curity

expe

nses

(Man

powe

r)Rs

Lakh

CPI

DLLE

3241

2285

2599

2637

2964

2793

2905

.4033

9224

Call C

enter

(Othe

r tha

n Man

powe

r0W

PI+C

PICS

185

247

294

298

313

313

319.9

632

825

Call C

enter

(Man

powe

r)Rs

Lakh

CPI

CS13

6718

2321

7121

9623

0723

0723

85.78

2422

26LT

Mob

ile M

ainten

ance

-MCS

U ( M

an P

ower

& ve

hicle)

Rs La

khCP

ICS

1319

4459

6130

7819

9125

8930

.6694

15.01

9930

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

–20

18

152

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

TABL

E –

IIPR

OJEC

TED

ANNU

AL E

SCAL

ATIO

N R

ATE

COMP

UTAT

ION

OF D

IFFE

RENT

PAR

AMET

ERS

DURI

NG F

IFTH

CON

TIFR

OL P

ERIO

D (2

017-

18)

Sl

NoPa

rticula

rsUn

itsInf

lation

ary

Basis

Sens

itivity

Pa

rame

ter

CAGR

betw

een

Aver

age

Inflat

ion R

ate

durin

g the

Co

ncer

ned

perio

d

Whe

ther

Inflat

ion

rate

is ap

plica

ble

Addit

ional

Gr

owth

Rate

of ex

p abo

ve

inflat

ion ra

te

Ratio

of E

xp

incre

ase

to se

nsivi

ty pa

rame

ter

{Lim

ited t

o 1}

Esca

lation

ra

te for

20

17-1

8

2015

-16

to 20

14-1

5to

2013

-14

to 20

16-1

720

16-1

720

16-1

71

Total

line-

length

incre

ase

%DL

L0.0

50.0

490.0

532

Total

cons

umer

s inc

reas

e%

CSM

0.06

0.07

0.08

3Re

pair

& Ma

inten

ance

Exp

endit

ure

Rs La

khW

PI+C

PIDL

L H0.0

522

0.093

40.0

781

0.02

Yes

0.03

1.00

5.03

4-

Rent

Rs La

khW

PI+C

PIDL

L0.0

493

0.087

00.0

779

0.02

Yes

0.03

0.99

4.96

5-

Audit

ors F

ees

Rs La

khW

PI+C

PIDL

L0.0

493

0.199

30.0

828

0.02

Yes

0.03

0.99

4.96

6-

Lega

l Cha

rges

Rs La

khW

PI+C

PICS

M0.1

318

0.390

10.1

614

0.02

Yes

0.11

1.00

5.39

7-

Othe

rs Ad

minis

trativ

e and

Gen

eral

Expe

nses

Rs La

khW

PI+C

PICS

M0.1

318

0.041

8-0

.0494

0.03

Yes

0.01

0.57

3.08

8Le

ase R

ental

Line

Rs La

khW

PIDL

LE0.0

429

0.098

90.0

547

0.00

Yes

0.04

0.86

4.30

9Co

mplai

nt Ma

nage

ment

Mech

anism

Rs La

khW

PI+C

PICS

M-0

.0606

-0.06

85-0

.0684

0.70

10Ra

tes &

Tax

esRs

Lakh

WPI

+CPI

DLLE

0.000

00.1

687

0.233

40.0

3Ye

s0.1

41.0

05.0

311

Insur

ance

Rs La

khW

PI+C

PIDL

LE0.1

819

0.311

80.1

033

0.04

Yes

0.27

1.00

5.04

12HT

Line

& su

bstat

ion M

ainten

ance

(othe

r tha

n Ma

n Pow

er

& ve

hicle)

Rs La

khW

PI+C

PIDL

L H0.0

920

0.077

90.1

273

0.03

Yes

0.05

1.00

5.03

13LT

Mob

ile M

ainten

ance

-MCS

U (o

ther t

han

Man P

ower

&

vehic

le)Rs

Lakh

WPI

+CPI

CS0.1

318

0.201

50.2

567

0.02

Yes

0.11

1.00

5.39

14Da

ta W

are-

hous

ingRs

Lakh

WPI

+CPI

CS0.0

000

-0.63

49-0

.2632

0.02

No-0

.020.0

015

Back

offic

e Job

Rs La

khW

PI+C

PIDL

LE0.0

000

0.226

5-0

.0572

0.02

No-0

.020.0

016

Fran

chise

e Cos

tRs

Lakh

CPI

CS0.1

015

0.170

7-0

.0976

0.05

Yes

0.05

1.00

5.42

17Me

ter R

eadin

g & B

ill Di

stribu

tion

Rs La

khCP

ICS

-0.05

680.1

612

0.264

70.0

5Ye

s0.1

11.0

05.4

318

Colle

ction

Fra

nchis

eeRs

Lakh

WPI

+CPI

CS0.1

318

0.134

10.4

790

0.02

Yes

0.11

1.00

5.39

19(H

T Lin

e &

subs

tation

Main

tenan

ce (M

anpo

wer a

nd

vehic

le)Rs

Lakh

CPI

DLL H

0.102

00.0

886

0.127

10.0

5Ye

s0.0

31.0

05.0

620

Secu

rity E

xpen

ses(

Othe

r tha

n Man

powe

r)Rs

Lakh

WPI

+CPI

DLLE

0.049

30.1

587

0.082

20.0

2Ye

s0.0

30.9

94.9

621

Secu

rity ex

pens

es(M

anpo

wer)

Rs La

khCP

IDL

LE0.0

589

0.036

70.0

692

0.05

No-0

.024.0

422

Call C

enter

(Othe

r tha

n Man

powe

r0Rs

Lakh

WPI

+CPI

CS0.0

505

0.031

00.0

817

0.03

Yes

0.00

0.42

2.29

23Ca

ll Cen

ter (M

anpo

wer)

Rs La

khCP

ICS

0.050

50.0

310

0.081

70.0

5N0

-0.02

0.42

3.41

24LT

Mob

ile M

ainten

ance

-MCS

U ( M

an P

ower

& ve

hicle)

Rs La

khCP

ICS

0.142

10.2

070

0.260

50.0

5Ye

s0.0

91.0

05.4

2


ANNEXURE – 5B APPORTIONMENT OF COST OF OUTSOURCING


TABLE – III

Particulars Excluding Manpower

Manpower related Total 13-14 ratio of Excluding

Manpower13-14 ratio of

Manpower relatedHT Line2012-13 2665 5009 7674 0.3 0.72013-14 2347 6273 8620 0.3 0.72014-15 3024 7842 10866 0.3 0.72015-16 3286.34 8783.66 12070 0.3 0.72016-17 3692.30 9868.70 13561 0.3 0.72017-18 4070.49 10879.51 14950 0.3 0.7Sub Station2012-13 1009 1768 2777 0.4 0.62013-14 758 2424 3182 0.2 0.82014-15 804 2666 3470 0.2 0.82015-16 786.82 2516.18 3303 0.2 0.82016-17 833.75 2666.25 3500 0.2 0.82017-18 881.40 2818.60 3700 0.2 0.8LT Mobile 02012-13 699.19 1318.81 20182013-14 2364 4459 6823 0.3 0.72014-15 3249.94 6130.06 9380 0.3 0.72015-16 4145.58 7819.42 11965 0.3 0.72016-17 4837.49 9124.51 13962 0.3 0.72017-18 5264.69 9930.31 15195 0.3 0.7Line and Substation2015-16 4073.17 11299.83 15373.00 0.3 0.72016-17 4526.06 12534.94 17061.00 0.3 0.72017-18 4951.89 13698.11 18650.00 0.3 0.7Call Center2012-13 185.29 1366.71 1552.002013-14 247.14 1822.86 2070.002014-15 294.30 2170.70 2465.002015-16 297.76 2196.24 2494.002016-17 312.80 2307.20 2620.002017-18 328.32 2421.68 2750.00Security Expenses2012-13 555.75 3241.25 3797.002013-14 296.04 2284.96 2581.002014-15 279.47 2598.53 2878.002015-16 357.57 2637.43 2995.00 0.12 0.882016-17 401.87 2964.13 3366.002017-18 459.89 3392.11 3852.00


ANNEXURE – 5C COMPUTATION OF EMPLOYEE COST


Sl No

Year 2015-16 2016-17 2016-17 2017-18 2017-18

Particulars Cost Actual DCL Cost estimated- DCL Cost Revised -WBERC

Cost Projection

DCL

Cost Admitted WBERC

1 Basic 29,325.00

29,489.00 29,834.81 77,782.00 32,116.56

2 DA32,590.00

35,119.00 35,503.42 3,052.00 44,642.01

3 Other Allowances8,298.00

8,470.00 8,442.26 18,292.00 9,087.92

4 Retirement Benefit57,559.00

66,193.00 59,418.16 68,331.00 61,337.36

5 Bonus Ex-gratia1,516.00

1,419.00 1,497.43 1,477.00 1,565.00

6 LTC918.00

859.00 906.76 894.00 947.67

7 Leave Encashment5,113.00

5,880.00 5,050.38 6,069.00 5,278.28

8 Welfare Exp263.00

246.00 259.78 256.00 271.50

9 Others8.00

7.00 7.90 8.00 8.26

10 Medical2,247.00

2,103.00 2,219.48 2,189.00 2,319.63

11 Leave Encashment-15days 1,643.00

1,538.001,622.88 1,600.00 1,600.00

12 Compensation 47.00

44.00 46.42 45.00 48.52

13 Liveries5.00

5.00 4.94 5.00 5.00

14 GRP Scheme185.00

174.00 182.73 181.00 190.98

15 Gross Total Employee Cost 139,717.00

151,546.00 144,997.34 180,181.00 159,418.70

16 Less Capitalized22,517.00

26,348.00 25,209.44 28,435.00 25,158.43

17 Total Employee Cost117,200.00

125,198.00 119,787.90 151,746.00 134,260.27

Tari

ff O

rder

of W

BSED

CL fo

r th

e ye

ar 2

017

– 20

18

AN

NEX

UR

E –

5D

CO

MPU

TATI

ON

OF

DEP

REC

IATI

ON

Wes

t Ben

gal E

lect

rici

ty R

egul

ator

y Co

mm

issi

on

155

Rs.L

akh

Deta

il of A

sset

izatio

n20

12-1

320

13-1

420

14-1

520

15-1

620

16-1

720

17-1

8-20

17-1

8-As

pro

jecte

d by

WBS

EDCL

As A

dmitt

edO/

b Wor

k –in

-Pro

gres

s19

2172

2186

7017

9257

1385

2014

1326

2309

32ad

dition

1454

9219

7516

2021

0417

3184

2392

6239

5710

Tran

sfer

red

to F

ixed

Asse

t11

8994

2369

2924

2841

1703

7814

9656

2740

0016

9111

.3Ba

lance

2186

7017

9257

1385

2014

1326

2309

3235

2642

CAGR

of C

apita

lizat

ion

12-1

3 to

15-1

613

% AS

SET

CLAS

S

Open

ing

Balan

ce

of d

epre

ciabl

eas

set

2016

-17

Addi

tion

durin

g th

e Ye

ar 20

16-1

7

Addi

tion

durin

g th

e Ye

ar 20

17-1

8

Asse

t to

be

depr

eciat

ed

durin

g th

e Yea

r 20

17-1

81.8

0%2.5

7%3.6

0%6%

18%

11.51

%To

tal

Gene

ratin

g As

set-C

alcul

ated

3183

8715

922

2377

935

8088

3587

725

989

2504

9715

446

158

3012

135

8088

Depr

eciat

ion-A

vg C

alcula

ted61

563

685

8588

227

3197

1394

2Di

strib

utio

n As

set-C

alcul

ated

1593

065

1337

3314

5332

1872

130

1875

7013

5875

1309

628

8075

782

515

7475

1872

130

Depr

eciat

ion-A

vg C

alcula

ted31

8132

8944

411

4565

140

1653

872

124

Mete

ring

Asse

t-Calc

ulat

ed15

3285

00

1532

8515

358

1112

510

7229

6612

6712

893

1532

85De

prec

iation

-Avg

Calc

ulated

277

286

3860

396

1214

3762

69Ot

her A

sset

Calc

ulat

ed36

431

00

3643

136

5026

4425

485

1571

1630

6436

431

Depr

eciat

ion-A

vg C

alcula

ted66

6891

794

334

214

90In

tang

ible

Asse

t Calc

ulat

ed48

980

048

9849

135

534

2621

13

412

4898

Depr

eciat

ion-A

vg C

alcula

ted9

912

313

046

200

Total

2106

066

1496

5516

9111

2424

832

Tota

l Dep

recia

tion-

Avg

Calcu

lated

4146

4288

5789

759

5118

221

561

9402

5To

tal D

epre

ciatio

n-Fo

rm B

1496

5524

2483

245

9247

4964

115

6590

201

2387

610

4123

Gran

t Fun

ded

Asse

ts25

970

Depr

eciat

ion-

2017

-18

6805

5


ANNEXURE – 5E REVISED STATEMENT OF LOAN

AND COMPUTATION OF INTEREST ON LOAN FOR 2017 – 2018


Interest on New Loan-Computation Rs. Crore

Particulars WBSEDCL CLAIM -2017-18 Admitted 2017-18 Fixed Asset 2740.00 1691.11 Loan Opening Balance 1155.63 1155.63 Drawal 1208.68 745.99 Repayment 89.48 71.97 Closing Balance 2274.83 1829.65Average of Opening Balance and Closing Balance 1715.23 1492.64 Rate of Interest 9.41% Interest 162.46 140.4574

Rs. in Crore

Source Opening Balance Drawal Repayment Interest Closing Balance

Market Bond LICI 17.58 0 17.58 0.75 0Capital Bond 1000 0 0 100.95 1000PFC 247.21 0 4.73 27.15 242.48REC 1990.8 0 136.78 237.63 1854.02New Project Loan 1155.63 745.99 71.97 140.4574 1829.65State Govt. 0 0Total Loan for Projects 4411.22 745.99 231.06 506.9374 4926.15Pension Bond 1530 0 306.00 104.04 1224Total DCL 5941.22 745.99 537.06 610.98 6150.15Capitalized at the rate as projected by WBSEDCL for 2017-18

36.4001

Charge to Rev 4668.685 574.58Less pension Bond 104.04Interest on capital loan 470.5373


ANNEXURE – 5F COMPUTATION OF INTEREST

ON WORKING CAPITAL FOR 2017 – 2018


Rs. in lakh Particulars Admitted

A. Gross Revenue Requirement (less interest on working capital)

2065152.51

B1. Less: Depreciation 68055.46

B2. Less: Deferred Revenue Expenditure

B3. Less: Return on Equity 37236.21

B4. Less: Reserve for Unforeseen Exigencies

B. Total deductions: (sum B1:B4) 105291.67

C. Allowable Gross Sales for Working Capital (A-B) 1959860.84

D. Allowable Working Capital @10% on C 195986.08

E. Security Deposit as projected for 2017-18 284513.00 F. Excess of Allowable Working Capital over Security Deposit

Nil


ANNEXURE – 5G

COMPUTATION OF WHEELING CHARGES FOR 2017 – 2018


Sl. No. Particulars Units 2017 - 20181 Employe cost for Distribution Function Rs. in lakh 128967.152 Outsourcing expenses for Distribution function Rs. in lakh 50783.803 Operation and Maintenance Expenses for Distribution function Rs. in lakh 50017.314 Rates and taxes Rs. in lakh 8064.355 Insurance Rs. in lakh 1003.176 Interest on loan Rs. in lakh 41964.737 Interest on Bonds for pension fund Rs. in lakh 9963.008 Other finance charges Rs. in lakh 2384.009 Depreciation (net of depreciation on metering and other asset) Rs. in lakh 47798.17

10 Taxes under Income Tax Act Rs. in lakh 7946.8011 Return on Equity Rs. in lakh 37236.2112 Gross Fixed Charges Rs. in lakh 386128.6913 Less: Non Tariff income related to distribution function Rs. in lakh 48507.47

14Less Expenses incidental to selling and distribution of energy viz., meter reading & billing, collection franchisee cost, franchisee cost, complaint management mechanism for consumer, lease rental charges, data warehousing, back office job, call centre cost, MCSU service, etc.

Rs. in lakh 32254.57

15 Interest credit Rs. in lakh 3857.75

16 Net admissible Fixed Charge related to distribution for power transmission only (12-13-14-15)

Rs. in lakh 301508.90

A Sale to own consumers MU 25324.00B Sale to other licensees at EHV MU 72.00C Sale to other licensees below EHV MU 1.00D Energy wheeled MU 13.00E Total of energy (A+B+C+D) MU 25410.00D Wheeling charge (18/C) paise / unit 118.66


ANNEXURE – 5H INCOME FROM NON-TARIFF SOURCES FOR 2017 – 2018


Rs. Lakh

Particulars 2012-13 13-14 14-15 15-16 Basis for

computations 17-18 17-18

Claimed AdmittedNo. of consumers 12096202 13686767 15103459 16364129 18343320 18343320

Meter Rental 17378 19117 20352 21507 Prorated to consumer numbers

51973 24108.21

Disconnection / Reconnection Charges

2052 3426 3277 3730 As proposed

4061 4061.00

Income from Investment and Bank Balance

1537 3316 2856 2435 As proposed

94 94.00

Surcharge for late payment

7528 13350 22880 14526 As proposed

16000 16000.00

Income from jobs at consumer premises

44 96 40 90 As proposed

90 90.00

Wheeling Charge 0 103 59 142 Working 174 154.26 Others 3936 4364 7196 3915 As proposed 4000 4000.00

Total of Other Income 76392 48507.47


CHAPTER – 6

SUMMARISED STATEMENT OF AGGREGATE REVENUE REQUIREMENT& REVENUE RECOVERABLE THROUGH

TARIFF FOR THE YEAR 2017 – 2018


6.1 Based on the analyses and findings recorded in the foregoing chapters the

Commission now draws the statements of Aggregate Revenue Requirement

(ARR) separately for the fifth control period covering the year 2017 – 2018.

Such statements are given in Annexure 6A.

6.2 In terms of the Tariff Regulations, the Commission is required also to

ascertain the amount of revenue recoverable through tariff for the years 2017

– 2018 after carrying out adjustments as follows:

6.2.1 WBSEDCL has asked for adjustments of other amounts of Rs. 52231.26 lakh

on the following accounts:

a) Amount of Rs. 22140.00 lakh payable by WBSEDCL to WBPDCL during

2017- 2018 on account of balance amount of arrear against tariff order

dated 30.12.2011 in respect of new units of WBPDCL.

b) Amount of Rs. 30091.26 lakh to be adjusted in 2017 – 2018 against the

balance arrear amount of Rs. 50152.10 lakh payable by WBSEDCL to

WBPDCL during 2017- 2018 on account of FCA for WBPDCL for 2012 –

2013 which the Commission admitted vide orders dated 06.06.2014 and

11.12.2014.

The Commission decides to allow the positive adjustment of Rs. 52231.26

lakh (Rs. 22140.00 lakh + Rs. 30091.26 lakh) as proposed by WBSEDCL for

payment to WBPDCL during 2017 - 2018.

6.2.2 WBSEDCL has submitted their plan for releasing regulatory assets in their

tariff application claiming Rs. 20202.00 lakh as part release of Rs. 554467.00

lakh recoverable on account of APR & FPPCA for the years 2013 – 2014 and

2014 – 2015 after considering adjustment of Rs. 99221.00 lakh of balance



Government grant. WBSEDCL also claimed a carrying cost of Rs. 76483.00

lakh on the submitted claim of APR & FPPCA for the years 2013 – 2014 and

2014 – 2015 considering SBI PLR of 14.05% as on 1st

As the APR and FPPCA for the years 2013-14 and 2014-15 has not yet been

determined by the Commission no amount on this account has been adjusted

with the ARR of 2017-18.

April, 2016.

6.3 Based on the above, the amount of revenue to be recovered through tariff,

for the year 2017 – 2018, is worked out in the table below.

REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2014 – 2015 (Rs. in lakh)Sl. No. Particulars Generation Distribution Total

1 Net Aggregate Revenue Requirement for 2017-18 as per Annexure – 6A 29062.39 1665852.30 1694914.69

2 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 22140.00 22140.00

3Payable FCA of WBPDCL for the year 2012-13 vide order dated 06.06.2014 and 11.12.2014.

0.00 30091.26 30091.26

4 Revenue Recoverable [(4 = sum(1:3)] 29062.39 1718083.56 1747145.95

6.4 To find out the revenue to be recovered from the consumers of WBSEDCL

the income of WBSEDCL from sale of power to CESC Limited, DPSCL, DPL

and Sikkim is to be done first and for that purpose the selling price of power

by WBSEDCL to above licensees are determined first as given below:

6.5.1 Commission has already admitted the sale amount of WBSEDCL to CESC

Limited to the tune of 1 MU at paragraph 4.7.3 of this order. The Commission

in its Order dated 04.03.2015 in Case No. TP-61/13 - 14 has allowed a single

part tariff of 757.30 paisa / kWh for sale of power to CESC during the year

2016-17. Commission finds it suitable to allow the same single part tariff of

757.30 paisa/kWh for sale of power to CESC during the year 2017 – 2018 as

well. Accordingly the Commission admits sale of 1.00 MU of power to CESC

Limited by WBSEDCL at a total cost of Rs. 75.73 lakh.



6.5.2 Commission has already admitted the sale amount of WBSEDCL to DVC to

the tune of 1 MU at paragraph 4.7.3 of this order. WBSEDCL has proposed

the tariff for DVC to be similar to CESC Ltd. Thus Commission admits the

single part tariff of 757.30 paisa/kWh for sale of power to DVC during the year

2017 – 2018. Accordingly, the Commission admits sale of 1.00 MU of power

to DVC by WBSEDCL at a total cost of Rs. 75.73 lakh.

6.5.3 Commission has already admitted the sale amount of WBSEDCL to IPCL to

the tune of 1 MU in paragraph 4.7.3 of this order. The Commission in its

Order dated 04.03.2015 in Case No. TP-61/13 - 14 has allowed a single part

tariff of 554.02 paisa / kWh for sale of power to IPCL (formerly known as

DPSCL) during the year 2016-17. Commission finds it suitable to allow the

same single part tariff of 554.02 paisa/kWh for sale of power to IPCL during

the year 2017 – 2018. Accordingly, the Commission admits sale of 1.00 MU

of power to IPCL by WBSEDCL at a total cost of Rs. 55.40 lakh.

6.5.4 Commission has already admitted the sale amount of WBSEDCL to DPL to

the tune of 20 MU at paragraph 4.7.3 of this order. The Commission in its

Order dated 04.03.2015 in Case No. TP-61/13 – 14 has allowed a single part

tariff of 681.00 paisa / kWh for sale of power to DPL during the year 2016-17.

Commission finds it suitable to allow the single part tariff of 681.00 paisa/kWh

for sale of power to DPL during the year 2017 – 2018. Accordingly, the

Commission admits sale of 20.00 MU of power to DPL by WBSEDCL at a

total cost of Rs. 1362.00 lakh.

6.5.5 Commission has already admitted the sale amount of WBSEDCL to

Government of Sikkim to the tune of 50 MU in paragraph 4.7.3 of this order

The price for sale of electricity to Sikkim by WBSEDCL has been admitted as

proposed by WBSEDCL and is 100 paise / kWh for 2017 – 2018 for supply of

50.00 MU at a total cost of Rs. 500.00 lakh.

6.5.6 Using the above determined sets of price for selling of electricity through bulk

supply by WBSEDCL to different licensees of the State and to Sikkim the

projected revenue income is determined as given below:



Sl. No. Name of Licensee Amount(Rs. in lakh)

1 CESC Limited 75.732 DVC 75.733 DPSCL 55.404 DPL 1362.005 SIKKIM 500.00

Total 2068.86

6.5.7 WBSEDCL shall consider the applicable MVCA, if any, in addition to the tariff

specified in paragraphs 6.5.1 to 6.5.4 above while selling electricity through

bulk supply to different licensees of the State.

6.6 The Commission accordingly worked out the average tariff for the consumers

of WBSEDCL for 2017 – 2018 and the same is shown in the table below:

AVERAGE TARIFF FOR THE CONSUMERS OF WBSEDCL IN 2017 – 2018Sl. No. Particulars Unit Total1 Total Revenue to be recovered through tariff Rs. in Lakh 1747145.95

2 Less: Revenue from sale of power to Licensees and Sikkim Rs. in Lakh 2068.86

3 Revenue recoverable from sale of power to the consumers [(3 )= (1)-(2)] Rs. in Lakh 1745077.09

4 Projected quanta of energy for sale to consumers MU 25324

5 Average tariff for the consumers for the year 2017 – 2018 [(5)=(Sl.3)x10/(Sl.4)]

Paise / kWh 689.10

6.7 On the basis of calculated revenue recoverable for supply of power to the

consumers and average tariff for the consumers for the year 2017 - 2018 as

mentioned in serial number 3 and 5 of above table in paragraph 6.6

respectively, the detailed tariff structure for different classes of consumers

and the other terms and conditions related to tariff for the year 2017 - 2018

are provided in chapter -7 of this order.


ANNEXURE- 6A


Generation Distribution Total Generation Distribution Total1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.002 Power Purchase Cost 0.00 1408931.00 1408931.00 0.00 1351278.40 1351278.403 Transmission charges payable to WBSETCL 0.00 110606.00 110606.00 0.00 122130.76 122130.764 CTU Charges 0.00 66447.00 66447.00 0.00 66447.00 66447.005 ERPC Charges 0.00 385.00 385.00 0.00 16.00 16.006 System operation charges payable to POSOCO 0.00 543.00 543.00 0.00 543.00 543.007 SLDC charges 0.00 2034.00 2034.00 0.00 1862.30 1862.308 Salary & wages including other staff welfare benifits 6587.44 143432.56 150020.00 3202.07 69720.84 72922.91

Terminal benefits 58.88 1668.12 1727.00 2091.05 59246.31 61337.369 O&M Expenses

(i) Operation and Maintenance for Generation 5340.00 0.00 5340.00 4942.59 0.00 4942.59(ii)Repairs & Maint. For Distribution (Incl. consumables) 32831.00 32831.00 0.00 32423.72 32423.72(iii) Administrative & Gen Exp for distribution 18348.00 18348.00 0.00 15070.01 15070.01(v) Lease Rental Charges for MPLS-VPN service 6123.00 6123.00 0.00 2225.60 2225.60(vi) Complaint Management Mechanism 351.00 351.00 0.00 297.98 297.98(vii) Insurance 1128.00 1128.00 0.00 1003.17 1003.17(viii) Rates & taxes 14407.00 14407.00 0.00 8064.35 8064.35(iv) Outsourcing Expenses For Distribution related to O&M

(a) Excluding manpower related cost & hiring of vehicle cost 22995.72 22995.72 (b)Limited to manpower related cost & hiring of vehicle cost only 27788.08 27788.08

Total O & M Expenses 5340.00 129978.00 135318.00 4942.59 109868.63 114811.2210 Depreciation 15629.00 54180.00 69809.00 13942.00 54113.00 68055.0011 Interest on bond for pension fund 441.00 9963.00 10404.00 441.00 9963.00 10404.0012 Interest on capital borrowings 5089.00 44007.00 49096.00 5089.00 41964.73 47053.7313 Interest on Consumers' Security Deposit 0.00 11500 11500.00 0.00 11500.00 11500.0014 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.0015 Other finance charges 36.00 2384 2420.00 36.00 2384.00 2420.0016 Bad Debts 0.00 2500.00 2500.00 0.00 0.00 0.0017 Other expenses 0.00 201.00 201.00 0.00 0.00 0.0018 Principal repayment of Bonds for pension fund 0.00 30600.00 30600.00 0.00 15300.00 15300.0019 Minimum Alternate Tax 0.00 0.00 0.00 0.00 7946.80 7946.8020 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.0021 Return on equity 0.00 44700.00 44700.00 0.00 37236.21 37236.2122 Gross Aggregate revenue requirement 33181.32 2064059.68 2097241.00 29743.71 1961520.98 1991264.6923 Less: Income from non-tariff sources 0.00 76392.00 76392.00 0.00 48507.47 48507.47

24Less: Recovery of expenses attributable for sale of energy to persons other than consumers and licensees 0.00 251421.00 251421.00 0.00 243303.46 243303.46

25 Less: Interest credit 0.00 1389.00 1389.00 681.32 3857.75 4539.0726 Net aggregate revenue requirement 33181.32 1734857.68 1768039.00 29062.39 1665852.30 1694914.69

AGGREGATE REVENUE REQUIREMENT OF WBSEDCL FOR FIFTH CONTROL PERIODRupees in Lakh

PROPOSEDSl No ITEM

ADMITTEDARR FOR 2017 - 2018

56790.00 56790.00

Tariff order of WBSEDCL for the year 2017 – 2018

CHAPTER – 7

TARIFF ORDER FOR 2017-18


7.1 In the previous chapter, the Commission has determined for WBSEDCL the

revenue recoverable through tariff during 2017 – 2018 and the average tariff for

the consumers of WBSEDCL for 2017 – 2018 as well. The Commission now

proceeds to determine the tariff schedule applicable to the consumers of

WBSEDCL and also the associated conditions of tariff of WBSEDCL for 2017 –

2018.

7.2 Commission observes that there is no significant change in the average tariff of

WBSEDCL for the year 2017 – 2018 with respect to the average tariff as

determined in the tariff order dated 28.10.2016 for the year 2016 – 2017 in

Case No. TP-61/ 13-14. Thus the Commission decides not to amend the tariff

for all classes of consumers of WBSEDCL and also the associated terms and

conditions of tariff as approved in the tariff order for 2016 – 2017 and

subsequent order dated 08.02.2017 in Case No OA-242/16-17. Accordingly the

tariff schedule applicable to the consumers of WBSEDCL in 2017 – 2018 are

annexed to this order and the associated terms and conditions are given in

subsequent paragraphs.

The tariff schedule as applicable to the consumers of WBSEDCL in the year

2017 – 2018 is given at Annexure – 7A1 for LV and MV consumers under

quarterly billing cycle, at Annexure – 7A2 for LV and MV consumers under

monthly billing cycle and at Annexure – 7A3 for HV and EHV consumers. The

tariff schedule fulfils the objective of attaining average tariff of each class of

consumers within 80% to 120% of the average cost of supply (689.10 paise/

kWh as per paragraph 6.6 of this order) except for lifeline and agriculture

consumers. For lifeline consumers the tariff has been kept at least of about 50%

of average cost of supply in line with the guidelines in paragraph 8.3(i) of



National Tariff Policy. The Commission has decided to give certain directives to

WBSEDCL on various matters. These are to be found at Chapter – 8.

Except rate B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT, D-ID and D-IDT, all the

rates under L&MV category are applicable for the supply below 50 KVA. Details

of different tariff schemes of different classes of consumers and various

associated terms and conditions are specified in various regulations and in

Annexure – C1 and Annexure – C2 to the Tariff Regulations. Other associated

conditions of tariff of WBSEDCL for 2017 – 2018 shall be as follows:

7.2.1 Load Factor Rebate/ Surcharge:

7.2.1.1 In order to reduce the overall system T&D loss and to flatten the load curve by

improving the existing system load factor of WBSEDCL, the voltage-wise

graded load factor rebate applicable for the EHV and HV industrial consumers

and L&MV industrial consumer under rate (B-IDI and B-IDIT) will be as per the

following table:

LOAD FACTOR REBATE (Paise / kWh)

Range of Load Factor (LF) Supply VoltageBelow 33 kV 33 kV Above 33 kV

Above 55% Up to 60% 1 2 3Above 60% Up to 65% 7 8 9Above 65% Up to 70% 14 29 39Above 70% Up to 75% 20 35 45Above 75% Up to 80% 25 40 50Above 80% Up to 85% 30 45 55Above 85% Up to 90% 35 50 60Above 90% Up to 92% 40 55 65Above 92% Up to 95% 45 60 70Above 95% 50 65 75

The above load factor rebate shall be applicable on total quantum of energy

consumed in the billing period. (For example a 33 kV industrial consumer at



85% load factor shall be eligible for a rebate @ 45 paise / kWh on the total

quantum of energy consumed in the billing period).

7.2.1.2 Industrial consumer whose contract demand is 1.5 MVA or above will get

additional rebate as per following table subject to the condition that payment is

made within the due date.

Additional Load Factor Rebate(paise/kWh)Load Factor Rebate (Paise/kWh)

Above 65% but upto 80% 20Above 80% 35

7.2.1.3 Load factor surcharge shall continue at the prevailing rate for those categories

of consumers to whom these are applicable at present including the L&MV

industrial consumer under rate (B-IDI, B-IDIT, B-IDC and B-IDCT).

7.2.1.4 Load factor rebate and load factor surcharge shall be computed in accordance

with the formula and associated principles given in regulations 3.9.2, 3.9.3 and

3.9.4 of the Tariff Regulations and at the rates mentioned in paragraphs 7.2.1.1

to 7.2.1.3 above

7.2.2 Fixed / Demand Charge:

(i) The fixed charge shall be applicable to different categories of consumers at

the rates as shown in Annexure 7A1 and Annexure 7A2 of this tariff order.

(ii) The demand charge shall be applicable to different categories of consumers

as per rates shown in Annexure 7A2 and Annexure 7A3 to this order on the

basis of recorded demand as specified in regulation 4.3.3 of the Tariff

Regulations subject to the conditions as specified in the Tariff Regulations.

(iii) When a new consumer gets connected to the system, the computation of

fixed charge or demand charge for that month shall be made pro-rata for the

number of days of supply in that particular month.



7.2.3 Subject to the condition as specified in regulation 4.13 of the Tariff Regulations,

the minimum charge shall continue at the existing level for all consumers.

7.2.4 In case of short term supply to Pandals for community religious ceremonies, a

rebate of 30 paise / kWh on energy charge of each unit will be given if the entire

illumination is done with LED.

7.2.5 For all consumers, excluding consumers having pre-paid meters, rebate shall

be given @ 1% of the amount of the bill excluding meter rent, taxes, duties,

levies and arrears (not being the arrears due to revision of tariff) if the payment

is made within the due date.

7.2.6 A special rebate of 25 paise/kWh for 2017-18 on energy charge shall be given

to the cold storage or dairy with chilling plant under C-ID and C-IDT tariff

category. This rebate shall be given before giving effect to the rebate mentioned

in paragraph 7.2.5.

7.2.7 In order to encourage one time payment for three months bill a special rebate of

10 paise per unit for 2017 – 2018 on energy charge shall be given to the

domestic and commercial consumers under LV and MV categories covered by

quarterly billing cycle under normal or normal-TOD tariff scheme if the payment

is made for the quarter at a time within the due date stipulated for the first

month of the quarter. This rebate shall be in addition to rebate under paragraph

7.2.5 for normal meter or normal TOD meter and will be given effect after giving

effect to the rebate under paragraph 7.2.5.

7.2.8 In addition to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7 above, if

the payment is made within due date, then an additional rebate of 1% of the

amount of the bill excluding meter rent, taxes, duties, levies and arrears (not

being arrears due to revision of tariff) would be allowed to the consumers who

would pay their energy bills through e-payment facility (through web by using

net banking, debit card, credit card, electronic clearing scheme). A rebate of Rs.



5.00 will be admissible prospectively if any consumer opts for e-bill following

regulation 3.1.10 of West Bengal Electricity Regulatory Commission (Electricity

Supply Code) Regulations, 2013. These rebates are applicable after giving

effect to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7.

7.2.9 The additional 1% rebate as mentioned in paragraph 7.2.8 above shall also be

admissible if the payment of energy bill is made within the due date through

valued card wallet system or USSD or Instapay of Banks or online payment

through any mobile software application. This rebate shall be given after giving

effect to rebate mentioned at paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7 above.

7.2.10 Power Factor Rebate/ Surcharge:

7.2.10.1 The power factor rebate and surcharge shall continue for all categories of

consumers under HV & EHV including the consumers under rates T(A), T(B)

and T(M) and also for L&MV industrial consumers under rate B-IDI and B-IDIT

to whom those are already applicable at present. The power factor rebate and

surcharge shall also be applicable to the consumers under rates B-IDC, B-

IDCT, D-ID, D-IDT, C-ID and C-IDT. The rate of rebate and surcharge and the

methods of calculation of such rebate and surcharge for the year 2017- 2018

are given below:

Power Factor (PF) Range

Power Factor Rebate & Surcharge on Energy Charge in PercentageFor Consumers under TOD Tariff

For Consumers under non-TOD TariffNormal Period (6.00

AM to 5.00 PM)Peak Period (5.00 PM

to 11.00 PM)Off-peak Period (11.00

PM to 6.00 AM)Rebate

in %Surcharge

in % Rebate in % Surcharge in %

Rebate in %

Surcharge in %

Rebate in %

Surcharge in %

PF > 0.99 8.00 0.00 9.00 0.00 7.00 0.00 5.00 0.00PF > 0.98 & PF < 0.99 7.00 0.00 8.00 0.00 6.00 0.00 4.00 0.00PF > 0.97 & PF < 0.98 5.00 0.00 6.00 0.00 4.00 0.00 3.00 0.00PF > 0.96 & PF < 0.97 4.00 0.00 5.00 0.00 3.00 0.00 2.50 0.00PF > 0.95 & PF < 0. 96 3.00 0.00 4.00 0.00 2.00 0.00 2.00 0.00



7.2.10.2 The rebate and surcharge against different time periods shall be reflected in

the bill separately and shall be treated separately.

7.2.11 For short term supply, emergency supply and for supply of construction power,

there shall be no rebate or surcharge for load factor and power factor.

7.2.12 Delayed payment surcharge shall be applicable as per regulation 4.14 of the

Tariff Regulations.

7.2.13 All existing charges relating to meter rent, meter testing, meter replacement,

fuse call charges, disconnection and reconnection etc. shall continue.

7.2.14 A consumer opting for pre-paid meter shall not be required to make any

security deposit.

7.2.15 All statutory levies like Electricity Duty or any other taxes, duties etc. imposed

by the State Govt. / Central Govt. or any other competent authority shall be

extra and shall not be a part of the tariff as determined under this tariff order.

7.2.16 All the rates and conditions of tariff are effective from 1st

PF > 0.94 & PF < 0.95

April 2017 and

onwards. This rate will continue till further order of the Commission. The rates

2.25 0.00 3.00 0.00 1.50 0.00 1.50 0.00PF > 0.93 & PF < 0.94 1.50 0.00 2.00 0.00 1.00 0.00 1.00 0.00PF > 0.92 & PF < 0.93 0.75 0.00 1.00 0.00 0.50 0.00 0.50 0.00PF > 0.86 & PF < 0.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PF > 0.85 & PF < 0. 86 0.00 1.00 0.00 1.25 0.00 0.75 0.00 0.75PF > 0.84 & PF < 0. 85 0.00 2.00 0.00 2.50 0.00 1.50 0.00 1.50PF > 0.83 & PF < 0.84 0.00 2.50 0.00 3.25 0.00 1.75 0.00 1.75PF > 0.82 & PF < 0. 83 0.00 3.00 0.00 4.00 0.00 2.00 0.00 2.00PF > 0.81 & PF < 0.82 0.00 4.00 0.00 5.00 0.00 3.00 0.00 2.50PF > 0.80 & PF < 0. 81 0.00 5.00 0.00 6.00 0.00 4.00 0.00 3.00PF < 0.80 0.00 6.00 0.00 7.00 0.00 5.00 0.00 3.50



mentioned in Annexure 7A1, 7A2 and 7A3 to this order exclude the Monthly

Variable Cost Adjustment (MVCA), if any, realized / to be realized by

WBSEDCL.

7.2.17 In addition to the tariff determined under this tariff order, WBSEDCL would

further be entitled to realize additional sums towards enhanced cost of fuel and

power purchase, if any, as per provisions of the Tariff Regulations based on the

tariff of this order. While computing MVCA, the direction in paragraph 4.2 of the

order dated 10.08.2015 shall be complied with.

7.2.18 The MVCA realized by WBSEDCL from 1st

7.2.19 For any pre-paid and TOD tariff scheme, other charges shall be the charges

applicable to the consumers under respective category of non-TOD tariff.

April, 2017 shall not be considered

for adjustments, if any, as per this tariff order. The MVCA realized by

WBSEDCL is subject to truing up during Fuel and Power Purchase Cost

Adjustment (FPPCA) and Annual Performance Review (APR) for the year as

per provision of Tariff Regulation.

7.2.20 An applicant for short term supplies through pre-paid meter shall have to

comply with all necessary formalities for obtaining supply including payment in

accordance with the Regulations made by the Commission. The same will be

subject to the following conditions:

a) provision of requisite meter security deposit to be kept with licensee,

b) provision of space for installing weather-proof, safe and secure

terminal services apparatus to protect sophisticated meter; and

c) availability of prepaid-meter of appropriate capacity.



7.2.21 To avail the rate for street lighting with LED [Rate D (2)], the supply should be

metered and all the street lights under the same meter shall be illuminated with

LED. For mixed type of street lights under single meter the rate D(1) shall be

applicable.

7.2.22 For a consumer with prepaid meter who has purchased voucher prior to the

date of issue of this order, the existing voucher will continue till such voucher is

exhausted.

7.2.23 As a part of demand side management to encourage the 33 kV and 132 kV

industrial consumers having monthly consumption above 1.0 MU, to reduce

their drawal of load in peak period and to shift the load to off-peak period the

following rebates shall be allowed:

(a) a rebate equivalent to the difference of the following two will be allowed:

i) Demand charge calculated as per regulation 4.3.6 of the Tariff

Regulations; and

ii) Demand charge computed based on the maximum demand of normal

period or maximum demand of peak period or contract demand in case

of off-peak period or 85% of contract demand whichever is higher, if

those industries keep their maximum demand during off-peak period

within 150% of contract demand.

(b) Similarly for the above consumers keeping their maximum demand during

off-peak period within 150% of contract demand, a rebate equivalent to

the difference of the following two will also be allowed.

i) Additional demand charge calculated as per regulation 4.7.2 of

Tariff Regulations; and



ii) Demand charge computed based on the methodology for additional

demand charge for the normal and peak period will be as per

regulation 4.7.2 of Tariff Regulations but there will be no additional

demand charge applicable for off-peak period.

(c) Similarly for the above consumers, keeping their maximum demand

during off-peak period within 150% of contract demand, a rebate

equivalent to the difference of the following two will also be allowed:

i) Load factor rebate computed as per the rates mentioned in

paragraphs 7.2.1.1 and 7.2.1.2 following the methodology

mentioned in paragraph 7.2.1.4 of this order without considering the

additional kWh and KVA drawn during off-peak period over

contractual demand; and

ii) Load factor rebate computed as per the rates mentioned in

paragraphs 7.2.1.1 and 7.2.1.2 following the methodology

mentioned in paragraph 7.2.1.4 of this order.

7.2.24 No other rebate shall be applicable except those which are specifically

mentioned under this order or in any regulation(s).

7.2.25 Any matter, which has not been explicitly mentioned in this order, shall be

guided by regulations 2.9.8 and 2.9.9 of the Tariff Regulations.

7.3 It is open to the State Government to grant any subsidy to any consumer or any

class of consumers in the tariff determined by the Commission for WBSEDCL.

If at all any such subsidy under the provisions of the Act is intimated to

WBSEDCL and to the Commission by the Government of West Bengal with

clear indication of the consumer or class of consumers to be subsidized and the

amount of the subsidy proposed to be given is paid in advance, the tariff of such

consumer and / or the class of consumers shall be deemed to have been



reduced accordingly as has been indicated by the State Government.

However, such direction of the State Government shall not be operative till the

payment is made by the State Government in accordance with the provisions of

the Act and the Regulations made thereunder, and the tariff as fixed by the

Commission shall remain applicable. In accordance with the Tariff Regulations,

the State Government is required to communicate the decision to WBSEDCL

and the Commission within 15 days from the date of receipt of the tariff order,

whether it shall give any subsidy to any group of consumers etc

7.4 WBSEDCL shall clearly indicate in the consumer’s bill (a) the amount payable

in terms of the tariff determined by the Commission for the year 2017-2018 (b)

the amount of the state government subsidy, if any and (c) the net amount

payable as per provisions of the Tariff Regulations.

7.5 WBSEDCL shall present to the Commission a gist of this order in accordance

with regulation 2.9.6 of the Tariff Regulation within three working days from the

date of receipt of this order for approval of the Commission, and on receipt of

the approval, shall publish the approved gist in terms of the aforesaid regulation

within four working days from the date of receipt of the approval of the

Commission.

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KW

H

Con

sum

er

cate

gory

NO

T A

PPLI

CA

BLE

15

Ener

gy

Cha

rge

P/

kWh

Rat

e

A(

DM

-R

)PP

Qua

rter

ly c

onsu

mpt

ion

in K

WH

Nam

e of

the

Tarif

f Sc

hem

e

15

3.

4.

Fixe

d C

harg

e /

Dem

and

Cha

rge

*

in R

s/K

VA/m

onTy

pe o

f Con

sum

er

Appl

icab

le T

ariff

Sch

eme

0 to

75

Nam

e of

the

Tarif

f Sc

hem

e

Nor

mal

Con

sum

er

cate

gory

Rat

e

A(

DM

-R)

Com

mer

cial

(Rur

al)

Rat

e

A(

CM

-U)

Dom

estic

(R

ural

)

Dom

estic

(Urb

an)

Nor

mal

- TO

D

Rat

e

A(

DM

-U

)PP

All

units

664

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

Ann

exur

e-7A

1

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

176

Ener

gy

Cha

rge

P/kW

h

Fixe

d C

harg

e/

Dem

and

Cha

rge

* in

Rs/

KVA

/mon

Fixe

d C

harg

e/

Dem

and

Cha

rge

*

in

R

s/K

VA/m

on

Nam

e of

th

e Ta

riff

Sche

me

Qua

rter

ly

cons

umpt

ion

in

KW

H

Ener

gy C

harg

e

P/kW

h

Con

sum

er

cate

gory

Sl

No

LOW

AN

D M

EDIU

M V

OLT

AGE

CO

NSU

MER

S

Opt

iona

l tar

iff S

chem

e

Opt

iona

l Tar

iff S

chem

e - I

IO

ptio

nal T

ariff

Sch

eme

– I

Qua

rter

ly

cons

umpt

ion

in

KW

H

Con

sum

er

cate

gory

Ener

gy

Cha

rge

P/

kWh

Qua

rter

ly c

onsu

mpt

ion

in K

WH

Nam

e of

the

Tarif

f Sc

hem

e

Fixe

d C

harg

e /

Dem

and

Cha

rge

*

in R

s/K

VA/m

onTy

pe o

f Con

sum

er

Appl

icab

le T

ariff

Sch

eme

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

er

cate

gory

On

all

units

663

On

all

units

725

In M

unic

ipal

Are

aO

n al

l un

its62

0

On

all

units

663

On

all

units

725

In N

on M

unic

ipal

Ar

eaO

n al

l un

its62

0

8.

Gov

ernm

ent S

choo

lR

ate

A(C

M-I)

477

25N

OT

APPL

ICAB

LE

Prep

aid

Nor

mal

On

all U

nits

75

Rat

e

A(

CM

-PU

) (M

UN

) PP

Prep

aid

17.0

0 hr

s to

23

.00

hrs.

All

units

All

units

23.0

0 hr

s to

06

.00

hrs.

All

units

On

all U

nits

786

All

units

Rat

e

A(

CM

-II)

PPT

1774

217

.00

hrs

to

23.0

0 hr

s.A

ll un

its

Prep

aid

- TO

D

776

599

On

all U

nits

06.0

0 hr

s to

17

.00

hrs

On

all U

nits All

units

766

1717

75

837

683

683

75R

ate

A(C

M-P

U)

(MU

N)

23.0

0 hr

s to

06

.00

hrs

06.0

0 hr

s. –

17

.00

hrs.

&

20.0

0 hr

s -

23.0

0 hr

s.

06.0

0 hr

s. –

17

.00

hrs.

&

20.0

0 hr

s -

23.0

0 hr

s.

17.0

0 hr

s to

20

.00

hrs.

23.0

0 hr

s to

06

.00

hrs

Prep

aid

- TO

D

Prep

aid

- TO

D6.

Publ

ic u

tility

/ Sp

ecifi

ed In

stitu

tion

Publ

ic B

odie

s

Rat

e

A(

CM

-PU

) (N

ON

-M

UN

) PP

Nor

mal

693

Nor

mal

Rat

e

A(

Cm

-PU

) (M

un) p

pt

Rat

e

A(

Cm

-PU

) (N

on-M

un)

ppt

75

On

all U

nits

693

75

On

all U

nits

Cot

tage

Indu

stry

/ Ar

tisan

/ W

eave

rs /

Smal

l pro

duct

ion

orie

nted

es

tabl

ishm

ent n

ot

run

by e

lect

ricity

as

mot

ive

pow

er

Rat

e

A(

CM

-II)

Nor

mal

Publ

ic u

tility

/ Sp

ecifi

ed In

stitu

tion

Publ

ic B

odie

s

NO

T A

PPLI

CA

BLE

669

10.

75

17R

ate

A(C

M-II

I) PP

T

Prep

aid

- TO

D

23.0

0 hr

s to

06

.00

hrs.

06.0

0 hr

s to

17

.00

hrs

Nor

mal

Poul

try,

Duc

kery

, H

ortic

ultu

re, T

issu

e cu

lture

, Fl

oric

ultu

re, H

erba

l –

Med

icin

al –

Bio

-di

esel

Pla

nt

Farm

ing,

Foo

d Pr

oces

sing

Uni

t

Rat

e

A(

CM

-III)

300

Nex

t30

0

Firs

t

abov

e60

0

9.

17.0

0 hr

s to

20

.00

hrs.

NO

T A

PPLI

CA

BLE

717

626

731

7.

Rat

e

A(

CM

-PU

) (N

ON

-M

UN

)

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

A

nnex

ure-

7A2

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

177

Ener

gy

Char

ge

Ener

gy

Char

ge

P/kW

hP/

kWh

1. La

bour

Line

(D

omes

tic )

Rat

e

A

(DM

-L)

616

15

06.00

hrs t

o 17

.00 hr

sAl

l un

its37

8Al

l un

its36

8

17.00

hrs t

o 23

.00 hr

s.Al

l un

its74

8Al

l un

its68

8

23.00

hrs t

o 06

.00 hr

sAl

l un

its24

2Al

l un

its27

9

3.

Irriga

tion p

umpin

g for

Ag

ricult

ure (

Meter

ed

supp

ly fro

m mi

xed H

V fee

der )

Rate

C(A

)47

530

Sl

No

Cons

umer

ca

tego

ryFi

xed

Char

ge/

Dem

and

Char

ge*

in R

s/KVA

/mon

Fixe

d Ch

arge

/ De

man

d Ch

arge

*

in

Rs/K

VA/m

on

LOW

AN

D M

EDIU

M V

OLT

AG

E C

ON

SUM

ERS

Optio

nal t

ariff

Sch

eme

Optio

nal T

ariff

Sch

eme -

II Ener

gy

Char

ge

P/kW

h

Optio

nal T

ariff

Sch

eme –

IMo

nthl

y co

nsum

ptio

n in

KW

HNa

me o

f th

e Tar

iff

Sche

me

Cons

umer

ca

tego

ryMo

nthl

y co

nsum

ptio

n in

KW

H

Fixe

d Ch

arge

/ De

man

d Ch

arge

* in

Rs/K

VA/m

on

Nam

e of

the T

ariff

Sc

hem

e

Mont

hly

cons

umpt

ion

in

KWH

Type

of C

onsu

mer

Appl

icabl

e Tar

iff S

chem

e

Cons

umer

ca

tego

ryNa

me o

f the

Ta

riff

Sche

me

Rate

C(T)

Norm

al TO

D

All u

nits

Norm

al

Irriga

tion p

umpin

g for

Ag

ricult

ure

(M

etere

d)

Norm

alA

ll un

itsNO

T AP

PLIC

ABLE

202.

NOT

APPL

ICAB

LE

2017

.00 hr

s to

23.00

hrs.

23.00

hrs t

o 06

.00 hr

s

NOT

APPL

ICAB

LERa

te

C(t)p

ptPr

epaid

- TO

D

06.00

hrs t

o 17

.00 hr

s

NOT

APPL

ICAB

LENO

T AP

PLIC

ABLE

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

A

nnex

ure-

7A2

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

178

Ener

gy

Char

ge

Ener

gy

Char

ge

P/kW

hP/

kWh

Sl

No

Cons

umer

ca

tego

ryFi

xed

Char

ge/

Dem

and

Char

ge*

in R

s/KVA

/mon

Fixe

d Ch

arge

/ De

man

d Ch

arge

*

in

Rs/K

VA/m

on

LOW

AN

D M

EDIU

M V

OLT

AG

E C

ON

SUM

ERS

Optio

nal t

ariff

Sch

eme

Optio

nal T

ariff

Sch

eme -

II Ener

gy

Char

ge

P/kW

h

Optio

nal T

ariff

Sch

eme –

IMo

nthl

y co

nsum

ptio

n in

KW

HNa

me o

f th

e Tar

iff

Sche

me

Cons

umer

ca

tego

ryMo

nthl

y co

nsum

ptio

n in

KW

H

Fixe

d Ch

arge

/ De

man

d Ch

arge

* in

Rs/K

VA/m

on

Nam

e of

the T

ariff

Sc

hem

e

Mont

hly

cons

umpt

ion

in

KWH

Type

of C

onsu

mer

Appl

icabl

e Tar

iff S

chem

e

Cons

umer

ca

tego

ryNa

me o

f the

Ta

riff

Sche

me

06.00

hrs t

o 17

.00 hr

sAl

l un

its72

017

.00 hr

s to

23.00

hrs.

All

units

875

23.00

hrs t

o 06

.00 hr

sAl

l un

its68

106

.00 hr

s to

17.00

hrs

All

units

447

17.00

hrs t

o 23

.00 hr

s.Al

l un

its82

523

.00 hr

s to

06.00

hrs

All

units

279

06.00

hrs t

o 17

.00 hr

sAl

l un

its72

017

.00 hr

s to

23.00

hrs.

All

units

923

23.00

hrs t

o 06

.00 hr

sAl

l un

its67

906

.00 hr

s to

17.00

hrs

All

units

758

17.00

hrs t

o 23

.00 hr

s.Al

l un

its82

623

.00 hr

s to

06.00

hrs

All

units

715

Prep

aid -

TOD

75 75

Shor

t Ter

m Irr

igatio

n Su

pply

Rate

A(CM

) - C

PPr

epaid

- TOD

Shor

t Ter

m su

pply

for

Comm

ercia

l Plan

tation

Comm

ercia

l Plan

tation

6. 7. 5.

Prep

aid- T

OD

Rate

A(ST

)NO

T AP

PLIC

ABLE

8. Sh

ort-t

erm

Supp

ly

75NO

T AP

PLIC

ABLE

Rate

C(T)

- ST

IS20

Prep

aid- T

OD

Rate

A(CM

)-STC

P

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

A

nnex

ure-

7A2

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

179

Ener

gy

Char

ge

Ener

gy

Char

ge

P/kW

hP/

kWh

Sl

No

Cons

umer

ca

tego

ryFi

xed

Char

ge/

Dem

and

Char

ge*

in R

s/KVA

/mon

Fixe

d Ch

arge

/ De

man

d Ch

arge

*

in

Rs/K

VA/m

on

LOW

AN

D M

EDIU

M V

OLT

AG

E C

ON

SUM

ERS

Optio

nal t

ariff

Sch

eme

Optio

nal T

ariff

Sch

eme -

II Ener

gy

Char

ge

P/kW

h

Optio

nal T

ariff

Sch

eme –

IMo

nthl

y co

nsum

ptio

n in

KW

HNa

me o

f th

e Tar

iff

Sche

me

Cons

umer

ca

tego

ryMo

nthl

y co

nsum

ptio

n in

KW

H

Fixe

d Ch

arge

/ De

man

d Ch

arge

* in

Rs/K

VA/m

on

Nam

e of

the T

ariff

Sc

hem

e

Mont

hly

cons

umpt

ion

in

KWH

Type

of C

onsu

mer

Appl

icabl

e Tar

iff S

chem

e

Cons

umer

ca

tego

ryNa

me o

f the

Ta

riff

Sche

me

All

Units

698

All

Units

1047

All

Units

482

Next

1500

724

All

Units All

Units

495

Next

1500

745

All

Units

814

Abov

e20

0077

5Al

l Un

its50

512

. St

reet

Lighti

ngRa

te

D(

1)66

475

13.

Stre

et Lig

hting

with

LED

Rate

D(2)

480

75

604

620

Abov

e

50

749

All

Units

On al

l Unit

s

First

500

23.00

hrs t

o 06

.00 hr

s

06.00

hrs t

o 17

.00 hr

s

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

50

06.00

hrs t

o 17

.00 hr

s

663

50

Norm

al -

TOD

23.00

hrs t

o 06

.00 hr

s

17.00

hrs t

o 23

.00 hr

s

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

Rate

B(

I-U) t

677

Rate

B(

I-R) t

Norm

al -

TOD

10.

Indus

try (R

ural)

11.

Norm

al

Rate

B(I-U

)

Rate

B (II

)Pu

blic W

ater W

orks

&

Sewe

rage

Sys

tem

Norm

alRa

te

B(

I-R)

First

500

2000

Norm

alOn

all U

nits

Norm

alInd

ustry

(Urb

an)

712

On al

l Unit

s9.

50

40No

rmal

All

Units

NOT

APPL

ICAB

LE40

06.00

hrs.

– 17

.00 hr

s. &

20.00

hrs -

23.00

hr

s.Ra

te

B(II)

tpp

Prep

aid -

TOD

17.00

hrs t

o 20

.00 hr

s.

23.00

hrs t

o 06

.00 hr

s

NOT

APPL

ICAB

LE

798

17.00

hrs t

o 23

.00 hr

s

NOT

APPL

ICAB

LE

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

A

nnex

ure-

7A2

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

180

Ener

gy

Char

ge

Ener

gy

Char

ge

P/kW

hP/

kWh

Sl

No

Cons

umer

ca

tego

ryFi

xed

Char

ge/

Dem

and

Char

ge*

in R

s/KVA

/mon

Fixe

d Ch

arge

/ De

man

d Ch

arge

*

in

Rs/K

VA/m

on

LOW

AN

D M

EDIU

M V

OLT

AG

E C

ON

SUM

ERS

Optio

nal t

ariff

Sch

eme

Optio

nal T

ariff

Sch

eme -

II Ener

gy

Char

ge

P/kW

h

Optio

nal T

ariff

Sch

eme –

IMo

nthl

y co

nsum

ptio

n in

KW

HNa

me o

f th

e Tar

iff

Sche

me

Cons

umer

ca

tego

ryMo

nthl

y co

nsum

ptio

n in

KW

H

Fixe

d Ch

arge

/ De

man

d Ch

arge

* in

Rs/K

VA/m

on

Nam

e of

the T

ariff

Sc

hem

e

Mont

hly

cons

umpt

ion

in

KWH

Type

of C

onsu

mer

Appl

icabl

e Tar

iff S

chem

e

Cons

umer

ca

tego

ryNa

me o

f the

Ta

riff

Sche

me

On al

l Un

its68

8

On al

l Un

its75

1On

all

Units

643

06.00

hrs t

o 17

.00 hr

sOn

all

Units

772

17.00

hrs t

o 23

.00 hr

sOn

all

Units

933

23.00

hrs t

o 06

.00 hr

sOn

all

Units

732

06.00

hrs.

– 17

.00 hr

s. &

20

.00 h

rs to

23

.00 hr

s

On al

l Un

its77

2

17.00

hrs t

o 20

.00 hr

s.On

all

Units

933

23.00

hrs t

o 06

.00 hr

sOn

all

Units

732

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LE

75

NOT

APPL

ICAB

LE

75

23.00

hrs t

o 06

.00 hr

s

17.00

hrs t

o 20

.00 hr

s

Norm

al -

TOD

06.00

hrs t

o 17

.00 hr

s & 20

.00

hrs t

o 23.0

0 hrs

15.

16.

Rate

D(5)

Cons

tructi

on P

ower

Su

pply

75

Prep

aid- T

OD

Prep

aid-T

OD

75

Rate

D(6

)

Emer

genc

y Sup

ply

14.

Rate

D(4)

Norm

alPr

ivate

Educ

ation

al Ins

titutio

ns an

d Ho

spita

ls70

8On

all U

nits

NOT

APPL

ICAB

LE

NOT

APPL

ICAB

LERa

te

D(4)

t

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017-

2018

A

nnex

ure-

7A2

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

181

Ener

gy

Char

ge

Ener

gy

Char

ge

P/kW

hP/

kWh

Sl

No

Cons

umer

ca

tego

ryFi

xed

Char

ge/

Dem

and

Char

ge*

in R

s/KVA

/mon

Fixe

d Ch

arge

/ De

man

d Ch

arge

*

in

Rs/K

VA/m

on

LOW

AN

D M

EDIU

M V

OLT

AG

E C

ON

SUM

ERS

Optio

nal t

ariff

Sch

eme

Optio

nal T

ariff

Sch

eme -

II Ener

gy

Char

ge

P/kW

h

Optio

nal T

ariff

Sch

eme –

IMo

nthl

y co

nsum

ptio

n in

KW

HNa

me o

f th

e Tar

iff

Sche

me

Cons

umer

ca

tego

ryMo

nthl

y co

nsum

ptio

n in

KW

H

Fixe

d Ch

arge

/ De

man

d Ch

arge

* in

Rs/K

VA/m

on

Nam

e of

the T

ariff

Sc

hem

e

Mont

hly

cons

umpt

ion

in

KWH

Type

of C

onsu

mer

Appl

icabl

e Tar

iff S

chem

e

Cons

umer

ca

tego

ryNa

me o

f the

Ta

riff

Sche

me

On al

l Un

its68

8

On al

l Un

its75

1

On al

l Un

its63

206

.00 hr

s. –

17.00

hrs.

&

20 .0

0 hrs

to

23.00

hrs

On al

l Un

its77

2

17.00

hrs t

o 20

.00 hr

s.On

all

Units

933

23.00

hrs t

o 06

.00 hr

sOn

all

Units

732

On al

l Un

its68

4On

all

Units

821

On al

l Un

its51

3On

all

Units

704

On al

l Un

its98

5On

all

Units

464

On al

l Un

its66

4On

all

Units

930

On al

l Un

its43

9On

all

Units

582

On al

l Un

its81

5On

all

Units

384

Rate

C- I

D

Norm

alAl

l unit

s75

22.

255

255

06.00

hrs.

– 17

.00 hr

s.

23.00

hrs t

o 06

.00 hr

s

21.

Dome

stic c

onsu

mers

(50 K

VA an

d abo

ve)

Rate

D- I

DNo

rmal

All u

nits

684

35Ra

te D

- IDT

Norm

al TO

D

06.00

hrs.

– 17

.00 hr

s.

623

All u

nits

Norm

al

Othe

r tha

n Ind

ustria

l ,C

omme

rcial

and

Dome

stic c

onsu

mers

(50 K

VA an

d abo

ve)

20.

NOT

APPL

ICAB

LE17

.00 hr

s to

23.00

hrs.

NOT

APPL

ICAB

LE

23.00

hrs t

o 06

.00 hr

s

17.00

hrs t

o 23

.00 hr

s.

23.00

hrs t

o 06

.00 hr

s

698

NOT

APPL

ICAB

LERa

te

D(7)

t

NOT

APPL

ICAB

LE75

3517

.00 hr

s to

23.00

hrs.

06.00

hrs.

– 17

.00 hr

s.

NOT

APPL

ICAB

LE

255

Norm

al TO

D

Norm

al -

TOD

75

23.00

hrs t

o 06

.00 hr

s

06.00

hrs t

o 17

.00 hr

s

17.00

hrs t

o 23

.00 hr

s

Rate

C- I

DT25

5No

rmal

TOD

06.00

hrs.

– 17

.00 hr

s.

17.00

hrs t

o 23

.00 hr

s.

23.00

hrs t

o 06

.00 hr

s

Bulk

Supp

ly at

single

po

int to

Co-

oper

ative

Gr

oup H

ousin

g Soc

iety

for pr

ovidi

ng po

wer t

o its

memb

ers o

r per

son f

or

prov

iding

powe

r to i

ts em

ploye

es in

a sin

gle

prem

ises

Rate

D(7

)17

.

Not

e :-

* Fix

ed C

harg

e w

ill b

e ap

plic

able

for t

he C

onsu

mer

hav

ing

Con

trac

t Dem

and

belo

w 5

0 K

VA a

nd D

eman

d C

harg

e w

ill b

e ap

plic

able

for t

he c

onsu

mer

hav

ing

Con

trac

t Dem

and

of 5

0 K

VA a

nd a

bove

.

18.

Comm

on S

ervic

es of

Ind

ustria

l Esta

teRa

te D

(8)

NOT

APPL

ICAB

LE

19.

Indus

trial c

onsu

mers

(50 K

VA an

d abo

ve)

Rate

B- I

DINo

rmal

TOD

255

Rate

B- I

DIT

Norm

al

Rate

B- I

DCT

693

All u

nits

712

All u

nits

255

Norm

al

Prep

aid -

TOD

Comm

ercia

l con

sume

rs (5

0 KVA

and a

bove

)Ra

te B

- IDC

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

- 201

8

Ann

exur

e-7A

3

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

182

Dem

and

Cha

rge

Dem

and

Cha

rge

Sum

mer

Mon

soon

Win

ter

Sum

mer

Mon

soon

Win

ter

06.0

0 hr

s-17

.00

hrs

&20

.00

hrs-

23.0

0 hr

s

17.0

0 hr

s-20

.00

hrs

All

Uni

ts94

594

293

923

.00

hrs-

06.0

0 hr

sA

ll U

nits

494

493

492

06.0

0 hr

s-17

.00

hrs

&20

.00

hrs-

23.0

0 hr

s

17.0

0 hr

s-20

.00

hrs

All

Uni

ts92

392

091

723

.00

hrs-

06.0

0 hr

sA

ll U

nits

483

481

479

06.0

0 hr

s-17

.00

hrs

All

Uni

ts70

870

770

617

.00

hrs-

23.0

0 hr

sA

ll U

nits

850

849

848

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

531

530

529

06.0

0 hr

s-17

.00

hrs

All

Uni

ts70

370

169

917

.00

hrs-

23.0

0 hr

sA

ll U

nits

844

841

838

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

527

526

524

HIG

H &

EXT

RA

HIG

H V

OLT

AGE

CO

NSU

MER

S

Indu

strie

s

(11

KV)

Indu

strie

s

(33

KV)

384

Nor

mal

- TO

D

628

626

624

613

Rat

e F(

bt)

384

Nor

mal

- TO

D

All

Uni

ts61

5

Rat

e E(

BT)

3

384

2 4

Opt

iona

l Tar

iff S

chem

e

Con

sum

er

cate

gory

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

ptio

n pe

r m

onth

in K

WH

Ener

gy C

harg

eEn

ergy

Cha

rge

384

Nor

mal

- TO

D

Con

sum

ptio

n pe

r m

onth

in K

WH

P/kW

hP/

kWh

Con

sum

er

cate

gory

(Rs.

/ KVA

/ m

onth

)

645

643

Nam

e of

the

Tarif

f Sc

hem

e

Rat

e E

(AT)

All

Uni

ts

Sl

No

Type

of

Con

sum

erA

pplic

able

Tar

iff S

chem

e

1A

ll U

nits

647

Rat

e E

(A)

384

Nor

mal

Publ

ic U

tility

(11

KV)

(Rs.

/ KVA

/ m

onth

)

715

384

635

633

718

713

Nor

mal

- TO

D38

4

611

384

Rat

e F(

AT)

Publ

ic U

tility

(33

KV)

All

Uni

ts

719

637

717

720

All

Uni

ts

Rat

e F(

B)

Rat

e E(

B)

Nor

mal

Rat

e F(

A)N

orm

al

Nor

mal

All

Uni

ts

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

- 201

8

Ann

exur

e-7A

3

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

183

Dem

and

Cha

rge

Dem

and

Cha

rge

Sum

mer

Mon

soon

Win

ter

Sum

mer

Mon

soon

Win

ter

HIG

H &

EXT

RA

HIG

H V

OLT

AGE

CO

NSU

MER

S

Opt

iona

l Tar

iff S

chem

e

Con

sum

er

cate

gory

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

ptio

n pe

r m

onth

in K

WH

Ener

gy C

harg

eEn

ergy

Cha

rge

Con

sum

ptio

n pe

r m

onth

in K

WH

P/kW

hP/

kWh

Con

sum

er

cate

gory

(Rs.

/ KVA

/ m

onth

)

Nam

e of

the

Tarif

f Sc

hem

e

Sl

No

Type

of

Con

sum

erA

pplic

able

Tar

iff S

chem

e

(Rs.

/ KVA

/ m

onth

)

06.0

0 hr

s-17

.00

hrs

All

Uni

ts69

168

968

717

.00

hrs-

23.0

0 hr

sA

ll U

nits

829

826

823

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

518

516

515

06.0

0 hr

s-17

.00

hrs

All

Uni

ts63

162

962

717

.00

hrs-

23.0

0 hr

sA

ll U

nits

757

754

751

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

473

472

471

06.0

0 hr

s-17

.00

hrs

All

Uni

ts61

160

960

717

.00

hrs-

23.0

0 hr

sA

ll U

nits

733

730

727

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

458

457

456

06.0

0 hr

s-17

.00

hrs

All

Uni

ts68

368

168

217

.00

hrs-

23.0

0 hr

sA

ll U

nits

1009

1006

1008

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

402

400

401

06.0

0 hr

s-17

.00

hrs

All

Uni

ts74

374

173

917

.00

hrs-

23.0

0 hr

sA

ll U

nits

1025

1022

1019

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

509

508

507

Indu

strie

s

(400

KV)

NO

T A

PPLI

CA

BLE

713

All

Uni

ts

7

Rat

e H

(BT)

34R

ate

S(G

T)

Rat

e H

(B)

Nor

mal

384

Rat

e J(

BT)

709

Rat

e

S(C

PT)

95In

dust

ries

(1

32 K

V)

Com

mer

cial

Pl

anta

tion

Nor

mal

- TO

D

Com

mun

ity

Irrig

atio

n/

Irrig

atio

n8

Nor

mal

- TO

D

Indu

strie

s

(220

KV)

Rat

e I(B

T)N

orm

al -

TOD

Nor

mal

- TO

D

6N

OT

APPL

ICAB

LE

384

NO

T A

PPLI

CA

BLE

Nor

mal

- TO

D71

1

384

NO

T AP

PLIC

ABLE

384

384

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

- 201

8

Ann

exur

e-7A

3

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

184

Dem

and

Cha

rge

Dem

and

Cha

rge

Sum

mer

Mon

soon

Win

ter

Sum

mer

Mon

soon

Win

ter

HIG

H &

EXT

RA

HIG

H V

OLT

AGE

CO

NSU

MER

S

Opt

iona

l Tar

iff S

chem

e

Con

sum

er

cate

gory

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

ptio

n pe

r m

onth

in K

WH

Ener

gy C

harg

eEn

ergy

Cha

rge

Con

sum

ptio

n pe

r m

onth

in K

WH

P/kW

hP/

kWh

Con

sum

er

cate

gory

(Rs.

/ KVA

/ m

onth

)

Nam

e of

the

Tarif

f Sc

hem

e

Sl

No

Type

of

Con

sum

erA

pplic

able

Tar

iff S

chem

e

(Rs.

/ KVA

/ m

onth

)

06.0

0 hr

s-17

.00

hrs

All

Uni

ts72

371

972

117

.00

hrs-

23.0

0 hr

sA

ll U

nits

1072

1066

1069

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

422

420

421

06.0

0 hr

s-17

.00

hrs

All

Uni

ts74

374

173

917

.00

hrs-

23.0

0 hr

sA

ll U

nits

1025

1022

1019

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

509

508

507

06.0

0 hr

s-17

.00

hrs

All

Uni

ts67

767

667

517

.00

hrs-

23.0

0 hr

sA

ll U

nits

1016

1013

1010

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

399

398

397

06.0

0 hr

s-17

.00

hrs

All

Uni

ts67

667

567

417

.00

hrs-

23.0

0 hr

sA

ll U

nits

1014

1013

1011

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

398

397

396

Rat

e

S(

CPT

-ST)

NO

T A

PPLI

CA

BLE

NO

T A

PPLI

CA

BLE

692

Nor

mal

- TO

DR

ate

E(

CT

)38

4

384

Nor

mal

- TO

D68

768

938

4

Shor

t Ter

m

Supp

ly fo

r C

omm

erci

al

Plan

tatio

n

Rat

e

F(C

T)A

ll U

nits

Rat

e

F(

C )

691

Shor

t Ter

m

Irrig

atio

n Su

pply

10

694

All

Uni

ts

11 13N

orm

al

Com

mer

cial

(11

KV)

Rat

e

E(

C )

12

Com

mer

cial

(33

KV)

384

384

Rat

e

S(

GT-

ST)

Nor

mal

Nor

mal

- TO

D

Nor

mal

- TO

D

34

690

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

- 201

8

Ann

exur

e-7A

3

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

185

Dem

and

Cha

rge

Dem

and

Cha

rge

Sum

mer

Mon

soon

Win

ter

Sum

mer

Mon

soon

Win

ter

HIG

H &

EXT

RA

HIG

H V

OLT

AGE

CO

NSU

MER

S

Opt

iona

l Tar

iff S

chem

e

Con

sum

er

cate

gory

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

ptio

n pe

r m

onth

in K

WH

Ener

gy C

harg

eEn

ergy

Cha

rge

Con

sum

ptio

n pe

r m

onth

in K

WH

P/kW

hP/

kWh

Con

sum

er

cate

gory

(Rs.

/ KVA

/ m

onth

)

Nam

e of

the

Tarif

f Sc

hem

e

Sl

No

Type

of

Con

sum

erA

pplic

able

Tar

iff S

chem

e

(Rs.

/ KVA

/ m

onth

)

06.0

0 hr

s-17

.00

hrs

All

Uni

ts66

866

666

417

.00

hrs-

23.0

0 hr

sA

ll U

nits

1003

1001

999

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

395

394

393

06.0

0 hr

s-17

.00

hrs

All

Uni

ts70

570

370

117

.00

hrs-

23.0

0 hr

sA

ll U

nits

793

791

789

23.0

0 hr

s-

06.0

0 hr

sA

ll U

nits

647

645

644

06.0

0 hr

s-17

.00

hrs

&

20.0

0 hr

s-23

.00

hrs

17.0

0 hr

s-20

.00

hrs

All

Uni

ts94

494

193

823

.00

hrs-

06.0

0 hr

sA

ll U

nits

494

493

492

06.0

0 hr

s-17

.00

hrs

&&

20.0

0 hr

s-23

.00

hrs

17.0

0 hr

s-20

.00

hrs

All

Uni

ts92

392

091

723

.00

hrs-

06.0

0 hr

sA

ll U

nits

482

480

478

643

686

Nor

mal

- TO

D

NO

T A

PPLI

CA

BLE

384

Nor

mal

- TO

D

35

632

Spor

ts C

ompl

ex &

A

udito

rium

run

by

Gov

t./ lo

cal

bodi

es fo

r cu

ltura

l affa

irs

Rat

e

S(

C )

18N

orm

al

684

384

All

Uni

ts

384

645

Rat

e

E(PW

T)

Nor

mal

- TO

D

Rat

e

H(C

T)

35 384

Rat

e

S(D

T)

Nor

mal

- TO

D

634

Rat

e

F(

PW)

All

Uni

ts68

8R

ate

H(C

)

34

17

726

724

728

750

748

630

15

Publ

ic W

ater

W

orks

&

Sew

erag

e

(33

KV)

Nor

mal

751

All

Uni

ts

All

Uni

tsN

orm

alPu

blic

Wat

er

Wor

ks &

Se

wer

age

(1

1 K

V)

All

Uni

ts

647

14 16R

ate

E (P

W)

Dom

estic

Com

mer

cial

(132

KV)

Nor

mal

Nor

mal

Rat

e

S(

D)

614

612

610

All

Uni

ts

All

Uni

ts

Rat

e

F(PW

T)38

4

628

626

624

384

Tarif

f Ord

er o

f WB

SED

CL

for t

he y

ear 2

017

- 201

8

Ann

exur

e-7A

3

Wes

t Ben

gal E

lect

ricity

Reg

ulat

ory

Com

mis

sion

186

Dem

and

Cha

rge

Dem

and

Cha

rge

Sum

mer

Mon

soon

Win

ter

Sum

mer

Mon

soon

Win

ter

HIG

H &

EXT

RA

HIG

H V

OLT

AGE

CO

NSU

MER

S

Opt

iona

l Tar

iff S

chem

e

Con

sum

er

cate

gory

Nam

e of

the

Tarif

f Sc

hem

e

Con

sum

ptio

n pe

r m

onth

in K

WH

Ener

gy C

harg

eEn

ergy

Cha

rge

Con

sum

ptio

n pe

r m

onth

in K

WH

P/kW

hP/

kWh

Con

sum

er

cate

gory

(Rs.

/ KVA

/ m

onth

)

Nam

e of

the

Tarif

f Sc

hem

e

Sl

No

Type

of

Con

sum

erA

pplic

able

Tar

iff S

chem

e

(Rs.

/ KVA

/ m

onth

)

06.0

0 hr

s-17

.00

hrs

All

Uni

ts59

659

559

417

.00

hrs-

23.0

0 hr

sA

ll U

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4


CHAPTER – 8 DIRECTIONS


8.1 The Commission has given some directions at different paragraphs in Chapter 4

and Chapter 5 of this order while determining the variable cost and fixed cost of

WBSEDCL. WBSEDCL will comply with those directions.

8.2 Commission also gave directions at paragraphs 4.2, 4.3, 4.4, 4.5, 4.6 and 4.23

of the Tariff order for the year 2016-2017 which shall also continue to remain in

force in this order.

8.3 WBSEDCL has submitted compliance report against some of the directions given

in the tariff order for 2016-2017 and made their submission against rest of the

directions given in the said order. In consideration of the above, the Commission

further directs WBSEDCL to comply with the following directions.

8.4 While submitting the ARR application of any year, the following sets of

information are to be provided by WBSEDCL in the notes of Financial statement

of Annual Accounts of any ensuing years or through Auditor’s Certificate, in the

manner as described below:

a) All the expenditure or cost element considered under tariff applications

are to be provided separately for distribution function, sale of energy

function and generation function for the regulatory requirement.

b) Any penalty, fine and compensation paid under the Electricity Act 2003

shall also be shown separately for distribution function, sale of energy

function and generation function.

c) Any fine, penalty or compensation paid under any other statute other

than the Electricity Act 2003 shall be mentioned separately for



distribution function, sale of energy function and generation function

respectively along with the reference of the statute.

d) The figure of AT&C loss for the years concerned in line with the

computation methodology as specified in Form 1.8 of the Tariff

Regulations is to be provided. Beside that AT&C loss calculated with

arrear recovery done for the period prior to the year for which the

account is prepared shall also be shown separately.

e) In the notes of the past Annual Accounts, Repair & Maintenance is

shown in three separate heads of distribution & metering, generation and

other heads. This ‘other heads’ to be specified in terms of specific

activities.

In case of non submission of the above documents/ information the application of

APR will not be admitted.

8.5 While submitting APR application of any ensuing year, WBSEDCL shall submit

the certificate from the statutory auditor of the annual accounts of the said year

for the following parameters:

a) Based on fixed asset register the parameters to be submitted are:

i) The distribution line length and transmission line (if any which is

essential part of distribution system as per section 2(72) of

Electricity Act 2003) length in CKM for each level of Voltage

related to the assets of WBSEDCL. For the asset which is not

owned by the WBSEDCL but maintained by WBSEDCL shall be

shown separately.



ii) Similarly the number of transformers and total installed capacity

of transformers in MVA or KVA for each category of transformers

for distribution system are to be provided.

b) For the year concerned under the APR the actual number of Consumers,

the consumption level in MU, total connected load in KVA and

chargeable demand in kVA for each category of consumers for each

season on whom the tariff rate has been issued in the tariff order of the

year corresponding to the APR under consideration.

c) Impact of sale to consumers in multiple licensee area at a tariff lower

than the ceiling tariff declared by the Commission, if any.

d) The figure of distribution loss and AT&C loss for the year concerned

under APR as per Form 1.7 and 1.8 of the Tariff Regulations.

e) A statement showing the manpower engaged in different fields of activity

which is now outsourced partly or fully vis-à-vis the manpower engaged

from regular establishment against the respective field of activities.

f) Copies of the audited accounts of all the terminal benefit funds for the

year for which APR is under consideration in a complete shape and not

by any selective pages.

g) A statement showing monthly deposit in different terminal funds for the

year for which APR is under consideration in persuasion to the direction

given in paragraph 8.10 below.



h) The detailed breakup of number of vehicles that cover all the three shifts

of a customer care centre, number of vehicles that cover only two shifts

of a customer care centre and number of vehicles that cover only one

shift of a customer care centre along with the respective expenditures for

each such category. Also give the total number of customer care centers

and customer care centers situated in urban areas as per definition in

regulation 2.1(xxv) of West Bengal Electricity Regulatory Commission

(Standards of performance of Licensees relating to consumer services)

Regulations 2010, as amended (in short SOP Regulations). The above

information shall be submitted in relation to MCSU services. For hiring

vehicle for high voltage services such data shall be submitted separately.

i) A detailed breakup showing total expenditure and employee strength

against each level of all categories of employees including the whole

time directors of the board. If any director or employee discharge any

function of other companies also then the allocation of cost among the

companies shall be shown separately and distinctly against each level.

j) With the application of APR, WBSEDCL shall also enclose their

compliance report on Renewable Purchase Obligation of power in

pursuance to clause 8 of the West Bengal Electricity Regulatory

Commission (Cogeneration and Generation of Electricity from

Renewable Sources of Energy) Regulations, 2013 or any of its

subsequent amendment or replacement in future.

In case of non submission of the above documents the application of APR will

not be admitted.



8.6 In case of expenditure at a level higher than the admitted amount under any

uncontrollable factor in this tariff order on account of fixed charges, while

submitting APR application of any ensuing year WBSEDCL has to justify such

higher expenditure in details with supporting documents and evidence on the

basis of which the Commission will take its decision during truing up exercise and

it may be noted that without sufficient justification the excess expenditure may

not be admitted in the APR fully or partly. Similarly for controllable factors, where

applicable as per the Tariff Regulations, for the same reasons supporting

documents and evidence are to be submitted to justify their claim. While truing up

any uncontrollable factor on account of fixed charges, the actual business

volume parameter (Distribution line length or consumer strength) and actual

inflation rate to which such uncontrollable item is sensitive will be considered in

the same manner and principle as determined under this tariff subject to the

limitation as per the Tariff Regulations. However, where applicable, as per this

tariff order the increase in ratio of expenses in terms of percentage on any item

and the increase in sensitivity parameter will remain the same as that of this tariff

order.

8.7 While submitting application of APR for any ensuing year by the licensee, if such

application shows any net claim for that year after considering the concerned

FPPCA, then in such case the licensee shall suggest in specific terms the

ensuing year(s) in which they intend to recover such claim and by what amount.

The Licensee shall also show the consequential impact of such recovery in the

expected average cost of supply in those ensuing years after considering the

total revenue recoverable through tariff. The total revenue recoverable through

tariff means the summated amount of the Net Aggregate Revenue Requirement

plus all other amount on account of any release of regulatory asset, FPPCA and



APR of its own and FCA of WBPDCL as applicable for any year which is being

already decided by the Commission in earlier orders. They shall also mention the

carrying cost, if necessary, where it is applicable in terms of the Tariff

Regulations and different orders and direction of the Commission in this respect.

This consequential impact on tariff shall also be provided in the gist of the APR

application.

In case of non submission of the above information the application of APR will

not be admitted.

8.8 In order to ensure that in future actuarial valuation of terminal benefit fund can be

kept in control in a better way by avoiding carrying cost of such liability in future

the following is to be adhered to:

a) WBSEDCL shall ensure that at least one-twelfth of the amount on

account of terminal benefit, as a part of employee cost admitted in the

tariff order, is to be deposited in different terminal benefit funds every

month as a first charge item. This process will continue beyond 2017 –

2018 till issuance of next tariff order.

b) On the head of terminal benefit fund, if there is shortage in the deposited

amount in the terminal benefit fund admitted in employee cost through

this order, the balance amount of contribution to terminal benefit fund is

required to be deposited as first charge item over and above what had

already been deposited for the year, from the effective date of recovery of

the recoverable amount against this order from the very first day. So, it is

directed that the balance amount of contribution as discussed above to

terminal benefit fund for the year, i.e., the difference between the amount

of contribution to terminal benefit funds as allowed in this order as a part



of employee cost and that has already been deposited in the fund for the

year, is to be deposited in the respective different terminal benefit funds.

Such balance amount is to be deposited in different terminal benefit funds

in not more than 12 monthly equal installments from the date on which

the recovery through tariff against this order will start.

c) While submitting application for APR of any ensuing year, WBSEDCL

shall show through audited accounts of different terminal benefit funds

that the contribution to the different terminal benefit funds during the

concerned year as a part of employee cost is duly deposited in the

terminal benefit funds.

In case of non-deposit of amount admitted for terminal benefit fund as provided in

(a) to (c) above in the respective fund as directed, Commission may withhold or

deduct the same amount equivalent to amount not deposited.

8.9 WBSEDCL shall furnish the details of the capital investments in distribution

systems during the last 10 years. WBSEDCL shall also submit the benefits

achieved with the implementation of such capital investment vis-à-vis benefits

projected during taking up such investments along with the cost incurred under

each major head.

8.10 Expenses on Complaint Management Mechanism, collection expenses and lease

rental expenses will be treated as Controllable factor.

8.11 The Commission is statutorily duty bound to promote generation of electricity

from following sources of energy:

i) Electricity generation from renewable sources



ii) Co-generation of electricity from renewable sources.

iii) Co-generation of electricity from fossil fuel sources.

iv) Co-generation of electricity from hybrid sources of fossil fuel /

conventional sources and renewable sources.

In order to promote above mentioned type of generation of electricity by applying

regulations 8.3 and 8.4 of the Tariff Regulations and regulations 19.1 and 19.2 of

the West Bengal Electricity Regulatory Commission (Cogeneration and

Generation of Electricity from Renewable Sources of Energy) Regulations, 2013,

the Commission decides that from the APR of the ensuing year a deduction of

5% from Return on Equity will be done if WBSEDCL fails to comply with the

Renewable Purchase Obligation as per West Bengal Electricity Regulatory

Commission (Cogeneration and Generation of Electricity from Renewable

Sources of Energy) Regulations, 2013 or any of its subsequent amendment. In

this context, the Commission also directs that WBSEDCL shall advertise on

important national media inviting the interested parties for supplying renewable

and cogeneration electricity on every four months for next two years instead of

one time in a year in pursuance of the regulation 3.5 of the said Regulations.

WBSEDCL is further directed to submit henceforth quarterly status report on

Renewable Purchase Obligation and initiatives taken to fulfill its RPO.

8.12 Any application for Power Purchase Agreement (PPA), except for short term PPA

meaning PPA for a period not exceeding one year, submitted by the licensee to

the Commission for approval of the PPA shall go through the process of inviting

suggestions and objections from all stakeholders through at least three widely

circulated newspaper publications for consideration of the Commission of all such



suggestions and objections as a process of the approval procedure and

subsequent to such approval only, the PPA can be executed by the licensee and

the seller of the power. While publishing the gist the licensee shall adhere to the

order of the Commission dated 31.05.2017 in Case No SM-16/17-18. For this

purpose, while submitting the application for approval of the said PPA the

licensee shall also give a draft gist for newspaper publication for approval of the

Commission. On getting approved gist from the Commission the gist shall be

published in the newspapers within 5 working days. Such gist shall also be

posted in the website along with a copy of the application and PPA from the date

of gist publication to at least the last date of submission of suggestions and

objections as will be mentioned in the gist. The gist shall cover the name of seller

of the power, type of specific source (such as coal, gas, hydro, solar, etc.), major

important parameters that are required under the Tariff Regulations for such

purchase and the important points of the purpose of such procurement. The

application submitted shall have the above points of the gist along with detailed

justification of such proposed procurement along with all the information and

parameters that are required under the Tariff Regulations or Regulations of the

Commission related to renewable and cogeneration sources of energy. The

application shall also clearly spell out as to how the interest of the consumer as

well as of the licensee has been safeguarded in the PPA. The application without

such gist and the points as mentioned shall not be admitted. This process is done

in order to meet the ends of justice after keeping consistency with the Electricity

Act, 2003.

WBSEDCL shall adhere to the above direction of the Commission.



8.13 While submitting application of APR WBSEDCL shall also submit a detailed

calculation showing that revenue collected against the supply of electricity to

consumers at a rate below the tariff of this order in pursuance to the application

of paragraph 7.3.21 and concerned clauses of Tariff Regulations satisfying the

condition that the consumers covered by application of such paragraph through

the notification dated 23.09.2014 published by WBSEDCL have been supplied

electricity at a price not below the cost of supply to them and revenue recovered

from them is commensurate with such price as well as their consumption.

WBSEDCL has also to establish that no loss on this head has been passed on to

other consumers through the ARR determination process in the APR.

8.14 In order to reduce the impact in FPPCA henceforth while applying the formula

of MVCA the component of adjustment Adj

8.15 As UI charge has been repealed and deviation charge is being introduced, the

Commission by applying regulation 8.3 of this Tariff Regulations will consider

N_UI_R as zero for applying the regulation 2.6.10 of the Tariff Regulations during

APR order of the fifth control period.

shall be duly applied by finding out

the deviation in recovery of variable cost from sale side computation for the

period concerned in pursuance to note (a) under paragraph A of the Schedule

– 7B of the Tariff Regulations.

8.16 All the distribution licensees and generating companies shall follow regulation

5.6.5.1 of the Tariff Regulations in its true spirit. According to regulation 5.6.5.1 of

the Tariff Regulations the interest on working capital requirement of a generating

company or a licensee shall be assessed on normative basis @ 18% on a base

amount derived by summation of annual fixed charges, fuel cost and power



purchase cost reduced by certain elements of the ARR. It has also been

mentioned there that where Monthly Fuel Cost Adjustment (MFCA) or Monthly

Variable Cost Adjustment (MVCA) exists, in that case for interest on working

capital requirement the above normative basis shall be 10% instead of 18% on

the said base amount. In this context it may be noted by all stakeholders that any

distribution licensee or generating company on which collection of MFCA and

MVCA, as the case may be, is applicable as per Tariff Regulations, shall not be

entitled to claim interest on the above referred normative basis of 18% even on

the plea of not claiming MFCA or MVCA throughout any financial year.

8.17 WBSEDCL is directed to continue with initiative taken by them for energy

conservation to flatten the load curve in the following ways:

(i) by retrofitting conventional light with LED lamp, energy efficiency appliances

like fans, A/C, etc; and

(ii) by arranging load management awareness programme for the consumers.

(iii) WBSEDCL to submit proposal for introducing TOD metering for high end

domestic consumers.

WBSEDCL shall also continue with the initiative taken in development of roof-top

solar PV and other renewable sources of energy.

8.18 WBSEDCL is directed to submit a status report of implementation of HVDS

project, IPDS and DDUGJY schemes within 3 (three) months from the date of

this order. WBSEDCL shall also submit status report of all the projects which

were funded / aided / supported by Central and State Government.



8.19 WBSEDCL is directed to complete 11 kV agricultural feeder segregation within

six months of this order and submit a status report within three months of this

order. WBSEDCL is also directed to conduct energy audit of all 33kV feeders

and rural, urban and mixed type 11 kV feeders separately and submit the report

indicating the action already taken / to be taken within specific time line for

reduction of AT&C loss within 3 (three) months of this order.

8.20 WBSEDCL is directed to carry out energy audit of that part of LV & MV system

where meters have been installed on the LV side of the DTR and submit the

report within 6 (six) months from the date of this order. WBSEDCL is also

directed to submit status report of installation of meters with DTR along with the

time frame to complete the same within 3 (three) months from the date of this

order.

8.21 WBSEDCL is directed to strictly comply with the regulation 4.23 of the Tariff

Regulations and calculate the contracted demand annually for each consumer.

WBSEDCL shall submit a compliance report in this regard along with their

application of APR. WBSEDCL is also to plan for optimum use of WBPDCL

generation to handle emergent conditions and optimize power purchase from

other sources including power exchange.

8.22 WBSEDL was directed to take up a pilot project on implementation of smart grid /

Advanced Metering Infrastructure (AMI) vide paragraph 4.29 of order dated

28.10.2016 in Case No TP-61/13-14. A project has been taken up by WBSEDCL

at Siliguri Town long back and it is reported to be in progress. WBSEDCL is

directed to complete the project immediately. WBSEDCL is also directed to

submit the present status report in details along with the target completion date to

the Commission within 3 (three) months from the date of this order. On



completion of the smart grid project WBSEDCL is to share its feed back with the

Commission.

8.23 WBSEDCL shall prioritize areas having high commercial loss, actions

contemplated to be taken for reduction of loss, improvement of billing and

collection efficiency (installation of smart meters, prepaid meters, pole mounted

meters, etc.) and spot collection of payment within 6 (six) months from the date of

this order. Earlier WBSEDCL had been directed to submit roadmap to achieve

reduction of cost of distribution nearer Re. 1.00 and reduction of technical losses

to certain percentages for different class of areas. WBSEDCL through their

different communications submitted about various initiatives already undertaken

by them and planned to be undertaken, though no specific roadmap has been

indicated. While appreciating the steps being undertaken by WBSEDCL, it is

directed to submit their plan of completion of the initiatives within 3 (three)

months from the date of this order.

8.24 WBSEDCL shall further submit consumption and AT&C losses for each voltage

level as below:

8.25 WBSEDCL shall conduct safety audit for its establishments including generating

stations and submit the report along with recommendations of auditor and

implementation plan with the APR application for the year 2017-18.

Voltage Level

Input energy to the voltage

l l

Sale to consumer/ li

Supply to lower voltage

l l

AT&C Loss

33 kV

11 kV

L&MV



8.26 WBSEDCL shall optimize the utilization of the units of Purulia Pumped Storage

Plant and other hydro units for efficiently supporting peak demands and

managing emergency situations.

8.27 WBSEDCL shall submit along with their APR petition for the year 2017-18, a list

indicating details of all contracts above Rs. 1 Crore on capital expenditure which

were awarded within last five years from the date of this order and where the

contract values were exceeded by more than 10% of the estimate. The reason

for such deviation shall be indicated for every such case.

8.28 WBSEDCL is directed that

a) all kind of short term power purchase have to be executed through the

process of reverse bidding in the national portal, as far as possible.

b) While purchasing renewable power the process of reverse e-bidding in

appropriate model in line with SECI shall be followed.

8.29 While submitting application of APR for the year 2017 – 2018, WBSEDCL shall

have to submit the following through affidavit:

a) That no expenditure has been claimed by WBSEDCL through the APR

petition on employee or infrastructure or any other support or O&M activity

pertaining to any other business of WBSEDCL not in relation to their

licensed business.

b) The list of cases related to Tariff, Annual Performance Review (APR) and

Fuel and Power Purchase Cost Adjustment (FPPCA) filed or applied for

order of west bengal electricity regulatory …wberc.gov.in/sites/default/files/wbsedcl...

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