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TRANSCRIPT
TARIFF ORDER
OF THE
WEST BENGAL ELECTRICITY REGULATORY COMMISSION
IN
CASE NO: TP – 35 / 07 - 08
IN RE THE TARIFF PETITION OF WEST BENGAL
STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
UNDER SECTION 64(3)(a)
READ WITH SECTION 62(1) AND SECTION 62(3)
OF THE ELECTRICITY ACT, 2003
FOR THE YEAR 2007 – 2008
DATE: 01.08.2007
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER - 1INTRODUCTION
West Bengal Electricity Regulatory Commission 2
1.1 The West Bengal State Electricity Regulatory Commission (referred to as the
Commission hereinafter) was constituted by the State Government of West
Bengal in 1999 in pursuance of the Provisions of Section 17 of the Electricity
Regulatory Commissions Act, 1998. The latter, along with the Indian Electricity
Act, 1910 and the Electricity (Supply) Act, 1948 was repealed by dint of Section
185 of the Electricity Act, 2003, (referred to as the Act hereafter) which came into
force with effect from 10th June 2003. The first proviso of Section 82(1) of the
Electricity Act, 2003 has ensured continuity of the Commission – along with that
of all other State Electricity Regulatory Commissions – by laying down that the
State Electricity Regulatory Commissions established by a State Government
under Section 17 of the Electricity Regulatory Commissions Act, 1998 (and a few
other State enactments), and functioning as such immediately before the
appointed date, shall be the State Commissions for the purposes of the
Electricity Act,2003.
1.2 The functions of a State Commission have been specified in Section 86 of the
Electricity Act, 2003. One of the main functions of a State Commission relates to
determination of tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be, within a State. Further,
Section 62(1) of the Act also requires the appropriate Commission to determine
the tariff in accordance with the provisions of the Act, for supply of electricity by a
generating company to a distribution Licensee, for transmission, for wheeling as
also for retail sale of electricity.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 3
1.3 The Commission has, therefore, all the powers and authority under the Electricity
Act, 2003 to determine the tariff, as laid down in the Act, and these powers and
authority are in continuation of similar powers and authority that were enjoyed by
the Commission under Section 29 of the Electricity Regulatory Commissions Act,
1998.
1.4 The West Bengal State Electricity Board, a State Electricity Board constituted
under Section 5 of the Electricity (Supply) Act 1948 after being reorganized in
terms of Section 131 of the Electricity Act, 2003 has been replaced by (i) West
Bengal State Electricity Transmission Company Limited and (ii) West Bengal
State Electricity Distribution Company Limited w.e.f 1.4.2007 in accordance with
a transfer scheme viz., West Bengal Power Sector Reforms Transfer Scheme
2007 notified by Govt. of W.B vide No.12-PO/O/III/3R-29/2006 dated 25.1.2007.
Whereas the functions and business in transmission activities and load despatch
activities have been transferred to and vested in West Bengal State Electricity
Transmission Company Limited (hereinafter referred to as WBSETCL), the
functions and business in distribution activities and activities related to hydro
undertakings have been transferred to and vested in West Bengal State
Electricity Distribution Company Limited (hereinafter referred to as WBSEDCL).
Both WBSETCL and WBSEDCL are deemed to be licensee under the Electricity
Act, 2003 in terms of fifth proviso to Section 14 of the Act and the area of
operation for both WBSETCL and WBSEDCL covers the whole State of West
Bengal excepting those areas of operation that are covered by other licensees.
In exercise of powers conferred under Sub-section 1 of Section 39, the Govt. of
W.B has notified and authorised vide No.89-PO/O/III/3R-5/2007 dated 26.3.2007
West Bengal State Electricity Transmission Company Limited to function as
State Transmission Utility w.e.f 1.4.2007.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 4
1.5 The Commission had determined the annual tariff in favour of West Bengal State
Electricity Board for seven consecutive years starting from 2000-01. The tariff
petition for the year 2007-08 on the basis of multi year framework in terms of
West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2007 has now been submitted by West Bengal State Electricity
Distribution Company Limited, one of the successor entities of West Bengal
State Electricity Board. The petition is for determining the tariff for wheeling and
retail sale of electricity for one year control period under multi year tariff
framework.
1.6 It has been stipulated in clause 2.5.2 of the WBERC (Terms & Conditions of
Tariff) Regulation 2007 that for first control period, filing of petition for tariff may
be made 7 days before the commencement of the control period. In view of the
fact that the successor Distribution Company of WBSEB came into existence
from 1.4.2007, it was appealed by the petitioner that they may be allowed 30
days of additional time from the date of commencement of the control period,
the date of commencement of control period being 1.4.2007. The Commission
allowed 15 days of additional time to WBSEDCL for filing its tariff petition
meaning thereby that the tariff petition of WBSEDCL shall be submitted to the
Commission by 16.4.2007 (15.4.2007 being a holiday). WBSEDCL vide their
letter No.C/DIR/COM/TARIFF/87/34 dated 16.4.2007 appealed for a further
extension of time for seven days in view of the time required by them in
segregating the cost of different elements between WBSETCL & WBSEDCL.
The Commission accepted the appeal and allowed WBSEDCL to submit the
Tariff Petition by 23.4.2007. Accordingly, the Commission has proceeded to
admit the tariff petition of WBSEDCL on 25.4.2007 which was submitted to the
Commission on 23.4.2007. The Commission, however, takes this opportunity
to advise the petitioner that this additional time has been allowed to prepare the
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 5
tariff petition subsequent to the formation of WBSEDCL on 1.4.2007 only for the
year 2007-08 and should not be taken as a precedence by WBSEDCL or any
other licensee for future years.
1.7 The tariff petition in question admitted by the Commission was marked as
No.TP-35 / 07-08. After admission of the same WBSEDCL was directed to
publish the gist of the tariff petition as approved by the Commission in
newspapers of which one will be in either Ananda Bazar Patrika or Bartaman,
one in either The Statesman or The Telegraph, one in a Hindi daily with
substantial readership in the State and one in an English daily with all India
readership (preferably The Economic Times or the Business Standard).
Accordingly, the gist of the petition was published simultaneously in Ananda
Bazar Patrika, The Telegraph, Sanmarg, Business Standard, Aajkal and
Bartaman on 1.5.2007.
1.8 While publishing the gist of the tariff petition, the insertions in the newspapers
called upon all interested parties and members of the public to file objections or
make comments on the petition. They were also afforded opportunities for
inspection of the petition and take copies of the same in terms of the relevant
provisions of the WBERC (Conduct of Business) Regulations, 2007.
1.9 Objections to / comments on the tariff petition, in question, received by the
Commission within the stipulated period i.e., 1.6.2007 have been described in
short in Chapter – 3.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER - 2THE CASE OF WBSEDCL
West Bengal Electricity Regulatory Commission 6
2.1 West Bengal State Electricity Distribution Company Limited (WBSEDCL)
in its tariff petition has claimed that the aggregated assets and liabilities
in WBSEDCL in terms of “West Bengal Power Sector Reforms Transfer
Scheme 2007” as notified by the Govt. of W.B has been considered for
estimating expenditures under different heads.
2.2 WBSEDCL has further claimed that the said assets and liabilities were
prepared as per the balance-sheet of West Bengal State Electricity Board
as on 31.3.2006. After adjusting the transactions during the year 2006-
07 the balance-sheet has been stated by the petitioner to have been
recast as on 31.03.2007 to arrive at the opening balance for the year
2007-08.
2.3 According to the petitioner total equity of WBSEDCL is Rs.1942.00 crore
as per the balance-sheet of erstwhile West Bengal State Electricity Board
as on 31.03.2006. The petitioner has further claimed that actual equity of
Rs.428.97 crore was added during the year 2006-07. Additional equity of
Rs.906.97 crore has been projected by the petitioner for the year 2007-
08. Average equity base computed by the petitioner for ARR for 2007-08
is Rs.2796.31 crore. A return on equity of Rs.391.48 has been claimed
by WBSEDCL in the revenue requirement for the year 2007-08.
2.4 The petitioner has claimed to have attempted to reduce the cross-
subsidies and rationalize the tariff for various classes of consumers in
line with 61(g) of the Electricity Act, 2003.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 7
2.5 The petitioner has claimed that metering upto 11 KV feeder had already
been completed and the metering of distribution transformer has been
taken up in a few circles. With the help of 100% feeder metering
endeavour is being made to reduce the ATC loss.
2.6 The petitioner has claimed that 100% metering for agricultural consumers
was in progress and metering in respect of 24000 nos. agricultural
consumers has already been completed upto February, 2007. The
petitioner has further claimed that from April, 2007 onwards revenue will
be realized on the basis of recorded consumption from these agricultural
consumers.
As claimed, the remaining agricultural consumers of the petitioner will
also be brought under metered supply within April, 2008 and AT & C loss
will get substantially reduced during the year 2007-08.
2.7 The petitioner has claimed that in accordance with restructuring plan for
State owned utilities of West Bengal the AT & C loss of the petitioner will
be steadily brought down within seven years from 36% to 24% in 2012,
while collection efficiency shall improve from 91% to 97% during the
same period.
2.8 The petitioner has claimed to have already strengthened security & loss
prevention wing and decentralised these activities upto circle levels.
Besides Corporate Wing and seventeen units at circle level, one unit has
been claimed to have been created at Asansol in 2006-07.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 8
2.9 High Voltage Distribution Supply (HVDS) has been claimed to have
already been introduced for irrigation / agricultural consumers directly
from distribution substation through L.T P.V.C cable. It has been claimed
by the petitioner that such distribution substation of capacity of 10 KVA,
11/0.4 KV are being used to give supply to two nos. of S.T.W consumers.
Similar scheme which is also being adopted for rural electrification will
substantially reduce both technical & commercial loss.
2.10 To facilitate energy audit, mapping and documentation of entire power
network of WBSEDCL with reference to geographical location including
attributes of the attached equipment in the power network, Geographical
Information System (GIS) has been claimed by the petitioner to be under
progress in respect of total 232 nos. of supply stations of WBSEDCL and
substantial progress in the said work is stated to have been made in
2006-07.
It has been claimed that after the completion of network documentation,
application software CYMDIST available with the petitioner would be
utilised to compute energy loss and the 33 KV & 11 KV network would be
planned on the basis of load flow studies with the help of this software to
reduce technical losses.
2.11 It has been claimed by the petitioner that spot billing facility for all
category of L & MV consumers has been introduced as a pilot project for
Garia Electric Supply, Dasnagar Electric Supply and Chandannagar
Electric Supply. The petitioner expects to extend the facility gradually to
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 9
other Electric Supplies of WBSEDCL which will further reduce the total
time for meter reading, preparation of bill & serving of bill.
2.12 In line with the restructuring plan for state-owned power utilities of West
Bengal notified by the Govt. of W.B in September, 2006, 24.7% T&D loss
has been considered by the petitioner to arrive at the estimated energy
requirement for 2007-08. Based on the above facts distribution loss for
WBSEDCL has been computed by the petitioner at 20.34%.
2.13 In view of the revocation of the distribution licence of Singur Haripal Rural
Electric Cooperative Society Ltd. (SHRELCOP) by the West Bengal
Electricity Regulatory Commission in terms of Section 19(2) of the
Electricity Act, 2003 w.e.f 31.12.2005 and in view of the appointment of
WBSEB as the administrator of the SHRELCOP utility, WBSEDCL, being
the successor entity of WBSEB in distribution business, is acting as an
administrator of the SHRELCOP utility from 1.4.2007.
The petitioner has claimed that while projecting total energy requirement,
consumption of different categories of consumers of SHRELCOP has
been clubbed in the projected consumption of WBSEDCL for the
respective categories.
2.14 The petitioner has claimed that due to the implementation of the crash
programme for rural electrification in line with the guidelines contained in
National Electricity Policy, additional one lakh new domestic consumers
would be connected in rural area during the year 2007-08.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 10
2.15 Consumption under different categories of consumers during the year
2007-08 has been claimed by the petitioner to have been estimated from
the trend in growth of consumption during the last three years for the
respective categories. Accordingly, 6082 MU has been projected to be
consumed by the consumers under L & MV category whereas the
consumption under HV & EHV category has been projected as 5730 MU.
Total sale of energy to own consumers of WBSEDCL thus has been
projected as 12,896 MU during the year 2007-08. Thus with 24.7% T&D
loss, 4242.02 MU has been projected as T&D loss for the year 2007-08.
Taking into consideration the energy utilized in own premises of the
petitioner and the loss for wheeling of power through other licensee’s
network, total energy requirement for the supply to its own consumers has
been projected by the petitioner as 17178.76 MU.
2.16 The petitioner has projected sale of energy to other licensees like, CESC,
DPSCL at the level of 945 MU during the period.
2.17 In terms of an agreement signed between the Govt. of W.B and Govt. of
Sikkim, the petitioner has claimed that 80 MU of energy being 20% of the
sent out generation from Rammam Hydel Station Stage-II would be
supplied to Sikkim at sent out cost of generation of the said power station.
2.18 Sale of incidental surplus energy to others has been estimated by the
petitioner at 5075 MU in the year 2007-08 taking into account additional
surplus energy to be made available from the new projects after meeting
requirement of own consumers, other licensees, Govt. of Sikkim and
considering energy requirement of 1130 MU during pumping mode of
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 11
Purulia Pump Storage Project. With the claimed T&D loss of 24.7% in the
system, WBSEDCL has computed its overall gross energy in its own
system to be 24485.17 MU.
2.19 In terms of West Bengal Power Sector Reforms Transfer Scheme 2007,
all the existing hydel power stations, all gas turbine units and diesel
generation units with all associated equipments of WBSEB have been
transferred to WBSEDCL from 1.4.2007. The Purulia Pump Storage
Project (PPSP) has also been transferred to WBSEDCL from 1.4.2007.
2.20 Gross generation projected to be available from the hydel power stations
of the petitioner has been projected to be 487 MU operating at average
L.F of 35%. Low generation at TCF hydel power station has been
attributed by the petitioner to the constraints stated to be due to non-
completion of Dauknagar main canal by I & W Deptt. A gross generation
of 860 MU has been projected by WBSEDCL for the year 2007-08 from
PPSP. It has been mentioned by the petitioner that the energy
requirement at the bus bar of PPSP for pumping mode operation will be
1130 MU during the year. No generation has been envisaged from the
gas turbine and no cost for this station has been stated to have been
considered by the petitioner for the year 2007-08. WBSEDCL is
maintaining only one diesel generation plant at Rudranagar in Sagar
Island. In view of the excessive cost associated with the diesel
generation, generation from this plant has been stated to have been
restricted and supplemented by energy from non-conventional sources.
Generation from diesel power station at Rudranagar has been projected
during the year 2007-08 at 0.64 MU.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 12
2.21 Total gross generation from own hydel sources, PPSP, diesel etc. has
been projected by WBSEDCL to be 1347.64 MU for the year 2007-08.
Considering 10 MU of auxiliary consumption and 4 MU of transformation
loss net sent out energy from own generation sources has been projected
at 1333.64 MU during the year.
2.22 To discharge the functions of a distribution licensee as a successor entity
of WBSEB the petitioner has committed to continue with the purchase of
power in the same manner as was being done by erstwhile WBSEB.
Power purchases have been proposed by the petitioner from West Bengal
Power Development Corporation Ltd. (WBPDCL), Durgapur Projects Ltd.
(DPL), DPSCL, DVC, NTPC, NHPC, The Power Trading Corporation
(PTC), Tala Hydro-electric Power. WBSEDCL also proposes to
purchase green power during the year from West Bengal Renewable
Energy Development Agency (WBREDA) and from a few non-
conventional energy sources & co-generation sources developed by
private entrepreneurs.
2.23 Total gross energy purchased from all the above sources including 643
MU of energy purchased on radial basis from DVC at 33 KV and below,
153 MU of energy purchased from DPL at 33 KV and below, 160 MU of
energy purchased from DPSCL, green energy from WBREDA and co-
generation sources has been projected by the petitioner to be 23359.52
MU. With the grid loss of 208 MU in the transmission system of
transmission licensee WBSETCL the net purchase has been projected for
the year 2007-08 to be 23151.52 MU.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 13
2.24 With net generation of 1333.64 MU and net purchase of 23151.52 MU,
WBSEDCL claims to be able to meet its gross energy requirement of
24485.17 MU of 2007-08 including the losses in its own system.
2.25 The petitioner has projected Rs.4201.04 crore for total purchase cost of
energy for the year 2007-08 out of which Rs.81.13 crore has been
projected for purchase of infirm power from Sagardighi Thermal Power
Station and Units IV & V of Bakreshwar Thermal Power Station of
WBPDCL.
2.26 Transmission charges payable to WBSETCL for the energy required to be
transmitted by the petitioner through WBSETCL system has been
projected as Rs.409.61 crore while the payable handling charges @ 2%
on transmission charges amounting to Rs.8.19 crore has been
considered.
2.27 An amount of Rs.369.54 crore has been projected as employees cost
after capitalization for the year 2007-08. WBSEDCL has justified their
existing staff strength of 21109 as on 1.4.2007 to provide service to their
consumers spread over the whole State mostly in rural and remote areas.
The petitioner has further committed that the staff strength will be reduced
to 20707 as assessed at the end of the financial year 2007-08 through
general separation.
2.28 The petitioner has further claimed that the element of D.A has been
considered as per order of Govt. of W.B issued from time to time in the
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 14
year 2006-07. The recent government order for merger of 50% of the D.A
with the basic pay of the employees w.e.f 1.4.2007 has also stated to
have been considered. It has been mentioned by the petitioner that any
further rise in D.A during 2007-08 if announced by the State Government
would be additional expenditure. The petitioner has further stated that
O.T allowance is allowed only to the technical staff engaged to attend
emergency breakdown beyond normal hours pointing out that
disallowance of such payment would severely affect the quality of
services.
2.29 The petitioner has projected repair & maintenance cost including
consumables for the year 2007-08 to be Rs.94.48 crore. The petitioner
has claimed that in order to deliver power at reasonable quality
parameters and to reduce instances of outage APDRP scheme in
distribution is under implementation. It has been confirmed by the
petitioner that in the year 2006-07 distribution assets of Rs.346.33 crore
has been added from the fund of REDC and RGGVY while distribution
assets of Rs.136.63 crore has been added from WBSEB’s own fund in
the year 2006-07. For the year 2007-08 WBSEDCL is stated to add
distribution assets of the order of Rs.690.00 crore from the fund of REDC
and RGGVY while distribution assets of Rs.216.94 is expected to be
added from the petitioner’s own fund. Considering the increased assets
of distribution the petitioner has claimed additional R & M expenses
during the year 2007-08 and has thus tried to justify the projected R & M
expenses of Rs.94.49 crore in the year.
2.30 The petitioner has claimed that due to increased activities of consumer
services, revenue monitoring, drive against theft of power etc. there would
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 15
be increase in administration and general expenses towards training and
legal expenses, traveling expenses including vehicle hire charges etc.
The petitioner has projected Rs.75.14 crore during the year 2007-08 to
meet administration and general expenses including rent, rates & taxes,
legal charges and auditor fees after capitalization.
2.31 While calculating the aggregate revenue requirement bad debts
amounting to Rs.4.30 crore has been considered by the petitioner. The
petitioner has appealed to allow the aforesaid amount because in the
latest audited accounts of WBSEB for the year 2005-06 written off amount
on account of bad debt has been shown as Rs.4.30 crore which is lower
than 0.5% of the value of gross fixed assets at the beginning of the year
2007-08 which has been stipulated in the para 4.10.1 of WBERC (Terms
& Conditions of Tariff) Regulation, 2007.
2.32 The petitioner has claimed that the cost of depreciation of assets of
WBSEDCL which would be in service during 2007-08 has been computed
annually on the basis of straight line method at rates prescribed in
WBERC (Terms & Conditions of Tariff) Regulation, 2007 upto a maximum
of 90% of the original cost of the assets. The depreciation has been
projected for the year 2007-08 as Rs.217.61 crore.
2.33 Net interest after capitalization has been projected by the petitioner for the
year 2007-08 at Rs.148.73 crore while other finance charges (net of
capitalization) has been projected to be Rs.21.87 crore.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 16
Interest for 2007-08 on bond for creation of pension fund has been
projected by the petitioner as Rs.130.05 crore.
2.34 The petitioner has included a sum of Rs. 70.60 crore in the revenue
requirement for 2007-08 as interest on working capital stated to be
calculated on normative basis @ 18% on estimated annual sale revenue
reduced by the amount of depreciation, deferred revenue expenditure &
RoE.
2.35 Interest on consumer security deposit has been projected for the year
2007-08 to be Rs.36.81 crore.
2.36 The petitioner has claimed that a sum of Rs.11.50 crore has been
included in the revenue requirement for 2007-08 in terms of WBERC
(Terms & Conditions of Tariff) Regulation, 2007 for allowing a reserve for
dealing with unforeseen exigencies and has been computed @ 0.25% of
the value of gross fixed assets at the beginning of the year.
2.37 Singur Haripal Rural Electric Cooperative (SHRELCOP) erstwhile
licensee under the Electricity Act, 2003 had been operating in Singur and
Haripal in Hooghly district. The petitioner has claimed that due to
difference in the selling price of WBSEB to SHRELCOP and the power
purchase price of SHRELCOP from West Bengal State Electricity Board
in the respective tariff orders of the two utilities for the years 2003-04,
2004-05 and 2005-06 an amount of Rs.22.73 crore was realised less by
erstwhile WBSEB. WBSEDCL has considered the aforesaid amount in
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 17
the revenue requirement under special appropriation head in the tariff
petition of the petitioner for the year 2007-08.
2.38 The petitioner has claimed that WBSEDCL as the administrator of
SHRELCOP has considered Rs.4.96 crore in the revenue requirement
under special appropriation head as expenses of SHRELCOP in their
tariff petition for the year 2007-08. It has also been claimed by the
petitioner that the revenue income from the consumers of Singur Haripal
area has been considered in the revenue income of WBSEDCL.
2.39 In the tariff petition WBSEDCL has drawn the attention of the Commission
to Rs.372.98 crore withheld by the Commission from the revenue
requirement of WBSEB in the tariff order of 2004-05 for non-submission
of full documents, information, data etc. etc. On being satisfied that the
WBSEB had started taking adequate steps to furnish the information,
documents, data etc. etc. the Commission released Rs.124.33 crore i.e.,1/3
rd of the with-held amount while passing the tariff order for 2006-07 in
respect of erstwhile WBSEB. In the tariff petition of 2007-08 the petitioner
has claimed 1/5th of the balance with-held amount being Rs.49.73 crore in
the revenue requirement under special appropriation head.
2.40 The petitioner has drawn the attention of the Commission to the amount
of Rs.637.96 crore deducted from the revenue requirement from 2004-05
towards excess interest allowed in the earlier years on the basis of Govt.
order dated 9.10.2002 reducing the interest rate to 2% w.e.f 2001-02.
The petitioner has claimed that the aforesaid Govt. order dated 9.10.2002
was subsequently withdrawn restoring the rates at which the loans were
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 18
originally sanctioned. Accordingly, Rs.637.96 crore deducted by the
Commission from the revenue requirement has now been claimed by the
petitioner to be refundable to WBSEDCL. In order to avoid tariff shock
5% of the deducted amount i.e., Rs.31.85 crore has been claimed by the
petitioner in the revenue requirement of 2007-08 under special
appropriation head.
2.41 The petitioner has claimed Rs.391.48 crore in the revenue requirement as
Return on Equity being 14% of average equity base of Rs.2796.31 crore
for the year 2007-08 considered for ARR. The average equity base of
Rs.2796.31 crore has been claimed to have been arrived at from the total
equity of WBSEDCL amounting to Rs.1942 crore as per the balance-
sheet of WBSEB as on 31.03.2006 in terms of West Bengal Power
Reforms Transfer Scheme, actual equity of Rs.428.97 added during the
year 2006-07 and the equity of Rs.906.97 crore projected for the year
2007-08.
2.42 Considering all the aforesaid expenditures the petitioner has claimed in
their tariff petition a total expenditure of Rs.6303.02 crore for the year
2007-08 to be recovered through tariff after due consideration to
deduction for additional income and revenue expected during the year.
2.43 Non-tariff income comprising of meter & service line rentals, meter box
charges, wheeling charges, reconnection & disconnection fees, delayed
payment surcharge, interest, investment income and other misc. charges
including fuse call charges, recoveries of theft of power etc. a total sum of
Rs.168.05 crore has been projected by the petitioner for 2007-08. This
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 19
includes revised rentals of Rs.100.36 crore and Rs.15.99 crore from
delayed payment surcharge projected to be collected during the year.
2.44 The petitioner has estimated that sale to CESC Ltd. during the year 2007-
08 would be 900 MU which will include sufficient quantum of peak power
largely sourced from Purulia Pump Storage Project. PPSP energy cost
being higher, the petitioner has assumed a higher rate for sale of power to
CESC Ltd. at a level of 270 p/kwh and the corresponding revenue for the
year 2007-08 from sale to CESC Ltd. has been projected at Rs.243 crore.
2.45 The petitioner has estimated a sale of 45 MU of energy to DPSCL. The
petitioner has stated that WBSEDCL is purchasing energy from DPSCL
@ 330 p/kwh and has proposed to sell to DPSCL at Bankhola at the
same rate and the corresponding revenue earning has been estimated at
Rs.14.85 crore for 2007-08.
2.46 During the year WBSEDCL has proposed to earn a revenue of Rs.13.52
crore from sale of power to Govt. of Sikkim at the rate of 169 p/kwh.
2.47 The petitioner has proposed to pass on 90% of the benefits earned from
the sale of 5075 MU of surplus energy to persons other than licensee or
any other consumer. Out of total sale value of Rs.1766.1 crore for this
energy @ 348 p/kwh the petitioner has computed such benefit for passing
on to the consumer during the year 2007-08 to be Rs.760.68 crore, while
the balance expenses attributable for such sale has been projected by the
petitioner to be Rs.920.90 crore during the year.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 20
2.48 Showing the total calculated expenditure of Rs.6303.02 crore and
considering aforesaid deductions due to revenue earned from other
income, bulk supply & supply to Sikkim, taking into account the benefits
passed on to the consumers and expenses attributable to export, AR
required for sale of energy to its own consumers has been projected by
the petitioner to be Rs.4182.02 crore for the year 2007-08.
2.49 With projected revenue requirement of Rs.4182.02 crore expected by the
petitioner from sale of 12896 MU of energy to its consumers the average
cost of supply per unit has been computed by the petitioner to be 324.29
p/kwh.
2.50 Higher cost of supply than the average cost which was allowed by the
Commission for the previous year (2006-07) is stated by the petitioner to
be due to the additional expenditure of Rs.77.16 crore to meet the
requirement of its own consumers for the year 2007-08.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER - 3OBJECTIONS AND SUGGESTIONS
West Bengal Electricity Regulatory Commission 21
Objections against the Tariff Petition of West Bengal State ElectricityDistribution Company Ltd (2007-2008)
3.1 As per the direction of the Commission, West Bengal State Electricity Distribution
Company Ltd. (WBSEDCL) published a gist of the tariff petit ion filed by the said
company calling upon all interested parties and members of the public to file
objections or make comments on the petition. The gist of petition was published
simultaneously in Ananda Bazar Patrika, The Telegraph, Sanmarg, Business
Standard, Aajkal and Bartaman. The intending objectors to the gist of the tariff
petition were also afforded opportunities for inspection of the petition and take
copies of the same in terms of the relevant provisions of WBERC (Conduct of
Business) Regulations, 2007. In response to the notifications, the Commission
received written objections to and comments on the tariff petition of WBSEDCL
from the following objectors within the stipulated period.
1. Micro & Small Scale Enterprises & Textiles Department, Govt. of W.B.
2. Singur-Haripal Rural Electric Co-operative Society Ltd.
3. Akbar Ali Mandal of Bohalipota & 306 similar objections submitted by
ABECA, North 24 Parganas.
4. Sree Nripendra Nath Chakraborty & 34 others.
5. CESC Ltd.
6. Reliance Communication.
7. Indian Tea Association & 6 others.
8. Hotel and Restaurant Association of Eastern India.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 22
9. Tapan Kumar Maji
10. Eastern Railway.
11. Chinmoy Saha & 1537 others submitted by ABECA, 27A Dhiren Dhar
Sarani.
12. Jaya Shree Textiles, A unit of Aditya Birla Nuva Limited.
13. Eastern India Textiles Mills’ Association.
14. All Bengal Electricity Consumers Association.
15. West Bengal Cold Storage Association.
16. Hooghly Chamber of Commerce.
17. Sri Vasavi Industries.
18. South Eastern Railway.
19. Dhanapati Basak & 178 others submitted by ABECA, 27A Dhiren Dhar
Sarani, Kolkata-12.
20. Bharat Chamber of Commerce.
3.2 The Principal Secretary, Micro & Small Scale Enterprises & Textiles Department,
Govt. of W.B., has pointed out that the consumer category of “Cottage industry
artisan / weavers / small production oriented establishment not run by electricity
as motive power” as mentioned in the Annexure C-1 of the WBERC (Terms &
Conditions of Tariff) Regulation, 2007 does not appear in the petition filed by
WBSEDCL. The objector has further appealed to provide the tariff for the above
category of consumers who are handloom weavers having upto 4 looms in their
houses in place of existing provision of “handloom weavers having 2 looms in
their houses and artisans not using electricity for their production purpose and
not displaying any hoarding”.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 23
3.3 Singur-Haripal Rural Electric Co-operative Society Ltd. has appealed for a
modified projected amount of Rs.265 lakhs against employees cost and Rs.36
lakhs as interest charges for 2007-08, thus, increasing the requirement on these
sub-heads of the Co-operative Society submitted in the tariff petition by
WBSEDCL as the administrator of SHRELCOP. The objector has also submitted
a proposal for capital investment of Rs.8.50 crore for improvement of the existing
power supply system, converting un-metered supply into metered supply,
installation of 11 KV capacitors for the feeders, for infrastructural development
and towards the expenditure for survey and mapping of the assets of the Co-
operative Society. The Co-operative Society has tried to justify the above capital
investment because of the stated reason that there was no scope for these
activities since 1.1.2006.
3.4 Printed objections with same contents signed by 2023 numbers of individual
objectors have been forwarded by ABECA from various parts of the State in 3
separate lots. Exactly similar printed objections with same contents have been
received from Shri Nripendra Nath Chakraborty & 34 other individuals while one
individual consumer, Sri Tapan Kumar Maji has sent the same printed objection
directly to the Commission with only difference that the typing error of point no.11
of other similar applications forwarded by ABECA has not been corrected by
aforesaid Sri Maji, Sri Chakraborty & 34 others. The objectors have made
certain general remarks against the tariff proposal of WBSEDCL. The objectors
have appealed not to allow recovery of withheld amount of Rs.31.06 crore stated
to be due to difference in rate of interest, Rs.49.73 crore stated to be due to non-
submission of full information during the period from 2003 to 2005 and also the
amount of Rs.4.96 crore for supply to Singur-Haripal Rural Electric Co-operative
Society Ltd. They have further demanded punishment to the licensee for their
lapses on these accounts. The objectors have in general blamed the policy of
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 24
elimination of cross-subsidy which in the opinion of the objectors have caused
higher tariff for small domestic and commercial consumers, public lighting etc.
and have raised the fixed charge for small industries. These objectors have also
expressed that un-metered supply to the agricultural consumers should be
continued. They have at the same time demanded that the annual payable
charges by the consumers for the un-metered supply should be reduced both for
shallow tube-wells and submersible pumps. The objectors have further
demanded that the metered supply to the agricultural consumers should be made
@ 50 paise / unit. The objectors have opined that T&D loss of WBSEDCL should
not be allowed above 18%. They have demanded that the consumers with
consumption of 30 units / month should be allowed a tariff at a rate of 50%.
These objectors have also demanded that the right of purchasing the meter by
the consumers should be implemented and for the industrial consumers the
meter rent should be reduced from Rs.100/- per month to Rs.45/- per month.
The objectors have also appealed for abolition of fixed charge for small industry
and have expressed their to desire examine the account of the money collected
by the licensee as penalty stated to be against false charges of theft of electricity.
These objectors have also demanded implementation of the policy of Open
Access immediately.
3.5 CESC Ltd. In their objection to WBSEDCL’s tariff petition has pointed out that
57% of CESC’s consumers consume belong to a consumption level of 49 units
per month and any rise in the tariff chargeable by WBSEDCL to CESC Ltd. will
have adverse impact on these small consumers. CESC Ltd. has appealed not to
increase the tariff of WBSEDCL for supply to CESC Ltd. above the existing 250
paise / unit as fixed by the Commission for the year 2006-07.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 25
3.6 Reliance Communication has appealed for conversion from commercial to
industrial category for the IT & ITEs being provided by them to meet the State
Government’s requirement of e-governance and for Panchayet and
Municipalities. The objectors have also objected against the proposed rise in
energy charge under A(Cm-R) and A(cm-U) which are presently being applied for
these consumers..
3.7 Indian Tea Association along with several other Planters’ associations have
raised objection against the charging of Demand Charges throughout the year for
Tea Industry which they opine to be seasonal industry and have demanded
appropriate facility to declare contract demand separately for the production
season and off season. The objectors have raised objection against separate
supply point for electricity supply for irrigation and factory in the tea gardens and
charging of demand charges separately. The objectors have also appealed for
determination of exact cost of supply at different voltages and determination of
relevant quantum of cross-subsidy imposed with clear indication of reduction of
cross-subsidy. The Associations have appealed to consider appropriate cost of
capital in use only on the basis of audited accounts taking into account only the
assets in use after the date of commissioning of the assets and to arrive at the
ROE accordingly. The objectors have also demanded that the period of
interruption be provided by the licensee furnishing the MRI records along with the
bills. The objectors have appealed that the reduced T&D loss and ATC loss
should be considered upholding the claimed gradual improvement of the
performance of WBSEDCL. The objectors have requested to consider the
income of WBSEDCL in earlier years against the supply to those other than
licensees or own consumers and also from the income arising out of net UI
charges.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 26
3.8 Hotel and Restaurant Association of Eastern India in their objection have
mentioned that the Govt. of W.B declared in the year 2000 that the hotels were
industries. The objector on the basis of this have appealed that the industrial
rates be made applicable for the electricity consumed by the hotels in carrying
out their business in place of the commercial rate which is presently being
applied for such consumption causing financial difficulties to the investors in the
hospitality industry.
3.9 Eastern Railway in their objections have stressed on the need for a reasonable
railway traction tariff and have objected to the proposed increase in the maximum
demand charge and have appealed for reduction in existing demand charges of
Rs.180 / KVA / month. Pointing out that in the tariff petition a reduction in
industrial energy charge has been proposed while the charges for traction energy
has been proposed to be enhanced, eastern railway have appealed for reduction
in per unit energy charges for the Railways. The objectors have also pointed out
that the rebate on energy charge for industrial consumers @ 4% & 8% in respect
of 33 KV and 132 KV level was ordered by the Commission for earlier years but
no such rebate was extended for 25 KV & 132 KV railway traction. The objectors
have requested to consider issuance of voltage rebate at the same rate as would
be applicable for HT / EHT industrial tariff. Eastern Railway have appealed for
withdrawal of any extra charge for excess drawal of energy for the reason that
the railway traction load is fluctuating in nature due to factors like public agitation,
accident, equipment failure, diversion of train due to natural calamity and traction
power interruption all of which are beyond the control of railway authorities.
Eastern Railway have proposed for levying extra charges on total excess
demand vis-à-vis total contract demand for all their TSS / GSS getting supply
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 27
from WBSEDCL. For the same reason the eastern railway have proposed that
punitive clause for load factor surcharge for railways should be implemented for
the load factor of 25% and below instead of 55% as proposed. Eastern Railway
have also proposed to keep the provision of power factor rebate clause for power
factor above 0.85% in railway traction instead of from above 0.9% as proposed.
Eastern Railway in their objections have drawn the attention of the Commission
to their reasoning for adopting simultaneous maximum demand for traction
substation in line with tariff order passed by some other State Electricity
Regulatory Commission. To justify this Eastern Railway have given the reason
that the loads on traction being moving load drawing power from one traction
substation to other in accordance with the time schedule, some times exceed
contract demand of one substation whereas drawing much less than the contract
demand of the immediate previous substation. According to Eastern Railway
charging for maximum demand for individual supply point as per the present
system is not judicious and have appealed for adoption of recording of
simultaneous maximum demand for traction substations. Eastern Railway have
pointed out that WBSEB, the earlier licensee was realising service connection
charges from the railway for augmentation of their transformer capacity to cater
the growth of electric traction. Eastern Railway have prayed that WBSEDCL
should not ask for any payment like service connection charges for augmentation
of transformer capacity in their substation. Eastern Railway have also prayed for
introducing some disincentive for WBSEDCL for not providing quality power
supply to Railways. They have at the same time proposed that the Railways may
be given some rebate in tariff on this account.
3.10 Jaya Shree Textiles besides raising objections against the proposed tariff of
WBSEDCL applicable to them have raised some issues stated to be confronting
the industrial consumers in general. They have appealed for lower cost of power
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 28
during off-peak hours from the proposed level of 69% of normal rate. The
objectors have appealed for the rate of off-peak period at a level of 50% of
normal energy charge. The objector have pointed out that WBSEDCL has
proposed higher incentive for load factor from 60% to 80% but no increase has
been proposed in the load factor rebate for load factor from 80% and above. The
objector have proposed that rebate for load factor of 85% and above be given at
a rate of 60 paise / kwh. Similarly, in the case of power factor also they have
proposed a higher rebate from and above power factor of 0.94. Linking the T&D
loss and rebate on energy charge proposed by the licensee, the objectors have
appealed for a total rebate of 20.7% instead of 8% on energy charges for 132 KV
consumers. Raising the question of cost of supply at the respective voltage
levels of the consumers the objector have proposed that the tariff should be fixed
by taking T&D loss of 4% in 132 KV system.
3.11 Eastern India Textiles Mills’ Association and Hooghly Chamber of Commerce
have submitted similar objections in line with the objections of Jaya Shree
Textiles. These two objectors have in addition also prayed for rebate on energy
charge at the level of 17.2% and 4.9% in the case of 33 KV & 11 KV consumers
respectively.
3.12 All Bengal Electricity Consumers Association (ABECA), 27A, Dhiren Dhar Sarani,
Kolkata-12, in their objection in the tariff proposal of WBSEDCL have submitted
the following points:-
(i) The Association has alleged that WBSEDCL has failed to follow the
regulations to provide better consumer services and to safeguard the
interest of the consumers. WBSEDCL in the petition has not mentioned
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 29
anything regarding the payment of compensation to the consumers for
load-shedding and low voltage etc. The Association has suggested
imposition of penalty on WBSEDCL instead of allowing fresh hike in their
tariff 2007-08.
(ii) The Association has further argued that the erstwhile WBSEB had earned
profit amounting to Rs.300 crore last year and therefore, no tariff hike
should be allowed this year.
(iii) According to the objectors T&D loss claimed by WBSEDCL at the level of
20.34% is unreasonably high and should be allowed at the level of 18%
only.
(iv) The objectors have objected to the provision of Rs.11.50 crore as
unforeseen exigency and have suggested that this amount should not be
taken into consideration while calculating the revenue requirement of the
company. They have further proposed that if any such reserve is
required, it should be built up from the return earned by the licensee.
(v) The Association has appealed that the prayer of the petitioner to consider
the rise in price index resulting in increased cost of business be
disallowed.
(vi) The objectors have also raised the objection against recovery of Rs.4.96
crore in the revenue requirement under special appropriation head as
expense of SHRELCOP. The objectors have further objected to inclusion
of Rs.22.73 crore arising due to difference in the selling price of WBSEB
to SHRELCOP and power purchase of SHRELCOP from WBSEB in the
tariff orders of 2003-04, 2004-05 and 2005-06.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 30
(vii) ABECA has objected to the inclusion of Rs.49.73 crore being 1/5th of the
withheld amount of Rs.372.98 crore in the tariff order for the years 2002-
03, 2003-04 and 2004-05. The objectors have suggested penalty to
WBSEDCL for the default of WBSEB in submission of appropriate
documents, information etc. for which the amount was originally withheld.
(viii) The objectors have also objected to the claim of WBSEDCL of Rs.31.85
crore being 5% of Rs.630.96 crore which was deducted from the revenue
requirement of WBSEB towards excess interest allowed in the earlier
years stating that once reducing the rate of interest in one Govt. order
and after a long time withdrawing by another such order should not be
considered for tariff fixation as it goes against the interest of the
consumers. WBSEB in such case should take up the issue with the Govt.
instead of claiming the amount.
(ix) Refuting the figure for total equity as provided in the transfer scheme the
objectors have suggested that the equity fund of WBSEB as allowed for
the year 2006-07 should be retained at the level of Rs.1352.62 crore for
2007-08 also. After the bifurcation of WBSEB into two companies equity
base of WBSEDCL should, according to the objectors, be considered as
½ of Rs.1352.62 crore i.e., Rs.676.31 crore and the return also be
calculated accordingly.
(x) The objectors have mentioned that the quantum of power purchase
allowed by the Commission for the year 2006-07 was higher than the
actual power purchase made by WBSEB in the year 2006-07. They have
suggested that the excess amount stated to have been allowed by the
Commission may be deducted from the power purchase cost for 2007-08.
(xi) The objectors have raised objections against the stated excess cost for
purchase of power from WBREDA and have expressed their desire to
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 31
know whether the purchase rate has been enhanced by the Commission
as also the reasons for reduction of power purchase from this source.
(xii) The Association has questioned the lower purchase of 622 MU only from
DVC in radial mode instead of 815 MU stated to have been allowed by
the Commission in 2006-07. They have also raised the question as to
why 690 MU of energy purchase from DVC has been proposed in 2007-
08. The objectors also want to know whether the proposed peak
purchase of 62 MU from DVC in 2007-08 is included in the purchase
proposal of 690 MU.
(xiii) The objectors have objected to higher ERLDC charge in 2007-08 in
comparison to that allowed for WBSEB in 2006-07.
(xiv) It has appeared to the objectors that WBSEB has drawn 2512.53 MU less
energy during 2006-07 in comparison to that allowed by the Commission
for power purchase. So, the Association has proposed that the cost of
23% of 2512.53 MU energy being Rs.184.38 crore be deducted from the
revenue requirement of WBSEDCL for 2007-08 for excess T&D loss. The
objectors have further reasoned that in the tariff proposal of 2007-08
excess power purchase of 1093 MU has been claimed in comparison to
that allowed for 2006-07. Corresponding cost allowed for T&D loss at
24% of 1093 MU @ Rs.3.24 per unit should, according to the objectors,
be deducted from the proposed expenditure of Rs.6303.02 crore.
(xv) The objectors have opined that the projected higher power purchase cost
is due to low PLF in hydro stations of WBSEDCL. The Association has
suggested not to allow PLF below 75% in the hydel projects. On this
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 32
account the objectors have opposed the excess power purchase cost for
2007-08.
(xvi) ABECA has expressed doubt about the proposed staff strength of
WBSEDCL and the projected employees’ cost thereof.
(xvii) The Association has further objected on proposed R&M expenses for
generation in the tariff proposal of WBSEDCL and has suggested to
deduct Rs.22.06 crore, which they claim, is excess R&M charge. The
objectors have observed that R&M cost for generation should follow the
PLF pattern of hydro generation. The objectors have proposed not to
allow more than Rs.65.62 crore for total R&M cost in 2007-08.
(xviii) Regarding administration and general expenses, the objectors have
made their own calculation to show that Rs.17.23 crore is required to be
deducted from the total administration & general expenditure projected by
WBSEDCL.
(xix) Regarding bad debts, the objectors have opined that the bad debts in the
audited figure of 2005-06 is Rs.4.30 crore but the Commission in the tariff
order of 2006-07 had allowed bad debts at Rs.19.35 crore, thus, allowing
Rs.15.05 crore more for realization in 2006-07 which should now be
deducted in the tariff order of 2007-08. Further, according to the
objectors, for Rs.4.30 crore bad debts proposed in 2007-08 no reason
has been shown by WBSEDCL.
(xx) The objectors have observed that WBSEDCL has claimed Rs.217.61
crore as depreciation charge for 2007-08, whereas in 2006-07 out of a
total depreciation of Rs.211.17 crore allowed to WBSEB, Rs.68.35 crore
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 33
was towards transmission assets. For 2007-08, according to the
objectors WBSEDCL should not be allowed to recover depreciation
charge of Rs.142.82 (Rs.211.17 – Rs.68.35) crore. The objectors have
also proposed that depreciation of WBSEB allowed on other assets in
2006-07 should be halved for taking into account the depreciation
charges for distribution licensee. ABECA has proposed that not more
than Rs.138.26 should therefore be allowed as depreciation charges to
WBSEDCL for 2007-08.
(xxi) The objectors have also objected to Rs.70.60 crore of interest on working
capital claimed by WBSEDCL and have proposed that the full amount
should be deducted from total expenditure.
(xxii) ABECA expressed its opinion that total sale proceeds on export of 5075
MU of energy outside the region should have been mentioned in the tariff
petition of WBSEDCL along with the figure of 90% of earnings that might
be given to the consumers. The objectors have also demanded that this
information should be given by the licensee to the Commission in writing
as well as in open hearing.
(xxiii) The Association has further contended that according to its calculation
average cost of supply cannot be more than Rs.2/- per unit in place of
claimed rate of Rs.3.24 per unit.
(xxiv) Making their own analysis of figures for net generation, purchased
energy, sale to own consumers, export, supply to CESC and DPSCL,
T&D loss etc. the objectors have drawn the inference that the results do
not show efficiency in performance or any safeguarding of consumers
interest. The objectors have also concluded that excess purchase has
been projected by WBSEDCL for 2007-08. The objectors have
demanded rejection of proposal for excess purchase and have suggested
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 34
increased generation from own sources of the licensee. The objectors
have further drawn their conclusion that since export of power projection
according to their analysis is more than that of excess of own consumers
consumption projection in 2007-08, the power purchase quantum and
cost are more in 2007-08 and amounts to uneconomical use of resources
and bad performance.
(xxv) According to the calculation of the objectors power purchase cost in
2007-08 is lower than that in 2006-07 but the projected average cost
shows an increase of 5 paise / unit. This, according to the objectors,
shows that all other cost per unit has increased by 3 paise / unit which
has been stated by the objectors to be unjustified and has been opposed
by the objectors.
(xxvi) On the basis of their analysis the objectors have determined that
Rs.1518.09 crore is required to be deducted from total projected
expenditure of Rs.6303.02 crore. Further, an amount of Rs.2121 crore is
to be deducted as proposed by WBSEDCL for other income, revenue
from bulk supply and supply to Sikkim, benefits passed on to the
consumers and expenses attributable for sale to persons other than
licensee or consumer. The objectors have deduced from above that the
revenue requirement of WBSEDCL for 2007-08 should be Rs.2663.93
crore and on the basis of saleable energy of 12896 MU, the average cost
according to the objectors comes to not more than Rs.2.06 per unit.
(xxvii) ABECA has further argued that in 2006-07 average cost of supply of
WBSEB was 319 paise/unit which the licensee has proposed to be raised
to 324 paise/unit for 2007-08. According to the objector’s argument,
WBSEDCL, in that case, cannot supply power to CESC @ 217 paise/unit,
DPSCL @ 255 paise/unit and Sikkim @ 169 paise/unit imposing extra
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 35
monetary burden on its own consumers. These agencies should,
according to the objectors, be allowed to purchase directly from WBPDCL
passing on its benefit to the consumers of WBSEDCL. The objectors
have also raised objection on purchase of power from DPSCL @ 330
paise/unit and sale of power @ 255 paise/unit.
(xxviii) The objectors have suggested category-wise tariff structure of WBSEDCL
on the basis of ABECA’s own calculation of average cost @ 206
paise/unit. The objectors have also suggested their own rates for
realisation of energy charges from the consumers with un-metered
supply. They have suggested new rate for realisation of fixed charge
from selected consumers. For supply to CESC, TOD rates of 204
paise/unit, 208 paise/unit and 196 paise/unit have been suggested by the
objectors for normal period, peak period and off-peak period respectively.
(xxix) The objectors have presented their argument against Purulia Pumped
Storage Project wherefrom WBSEDCL proposes to procure 850 MU of
energy in 2007-08 by purchasing 1130 MU of energy for use in pumping
mode. Calling such mode of power procurement uneconomical, the
objectors have pleaded for disallowance of Rs.52.64 crore of excess
power purchase on this account.
(xxx) The objectors have also argued that the average rate of power purchase
being Rs.1.88 per unit the selling of power to Sikkim @ Rs.1.69 per unit
will cause a loss of Rs.1.52 crore for 80 MU of energy and this should be
disallowed.
(xxxi) The objectors have opined that sale of power to CESC and DPSCL at
rates below the proposed average cost of 324 paise/unit in 2007-08 will
cause a loss of Rs.48.60 crore and Rs.3.10 crore which will become a
burden on consumers of WBSEDCL and should not therefore be allowed.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 36
(xxxii) ABECA strongly objected to the proposed additional rebate of 5 paise/unit
for EHV consumers arguing that this will raise the burden on L & MV
consumers.
(xxxiii) ABECA has argued against increase in load factor rebate and power
factor surcharge. Increase in load factor rebate from 4 paise to 45 paise,
according to the objectors, will benefit only big industrial consumers to the
disadvantage of small L & MV consumers who will have to according to
the objectors bear the burden. Proposed increase of power factor
surcharge by 20% for consumers having power factor below 0.85 has
been opposed by the objectors for being unjustified. Instead, the
objectors have suggested to penalise WBSEDCL for low PLF in its
generating stations.
(xxxiv) The objectors have suggested a rate of 50 paise / unit for supply of
electricity to those agricultural consumers who are supplied through
meters.
(xxxv) Calling the proposal of increase of tariff for public light, LT public utility
service and public water works as anti-people, the objectors have
suggested increase of rates for HT industrial and HV & EHV consumers
and have advocated for withdrawal of fixed charges for LT consumers.
Opposing the proposal to enhance meter rent by rupee 1/- for LT
domestic consumers the objectors have proposed to allow the purchase
of meters by consumers. The new proposal of WBSEDCL for tariff for
400 KV supply has also been objected by ABECA.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 37
3.13 West Bengal Cold Storage Association has, in their submission against the tariff
proposal of WBSEDCL, described the tariff proposal as a ‘shock surge for
remotely situated HV Cold Storage consumers’ and has called it ‘discriminatory’
in comparison to industrial consumers.
The Association has argued that in view of recent upward revision in the scale of
electricity charges, geographical position of Cold Storage set up and the purpose
of use of energy the circumstances do not uphold any further hike in tariff at this
stage. The objectors have raised objections against the proposal of raising the
energy charge for Cold Storage consumers by 22 paise / unit and the proposal to
raise the demand charge by Rs.20/- per KVA/month. The objectors have further
raised objections against inclusion of the receivable amount of outstanding dues
of erstwhile WBSEB from SHRELCOP in the cost statement for 2007-08, thus,
passing on the financial burden of SHRELCOP to the consumers of WBSEDCL.
By means of graph etc. the Association has, in its, submission pointed out that
the effective cost of electricity including demand charge for a 200 KVA Cold
Storage plant at a loading of 93263 quintals increases sharply and reaches as
high as Rs.25/- per unit during the months from December to March although the
average cost of supply of WBSEDCL has been proposed to be Rs.3.24/unit in
2007-08. Furnishing operating features of Cold Storages during the stated
loading, holding, unloading and lean periods the Association has presented the
case of Cold Storage consumers with the help of graphs showing the profile of
consumption and demand during the various months of the year. Calling the
Cold Storages as seasonal establishments the objectors have described them as
pre-dominantly rural set up playing an important role in serving the interest of
poor and marginal farmers. In view of the stated seasonal character the
Association has prayed for Actual Power Drawal Based Demand Charge instead
of existing charges based on 75% of contract demand for Cold Storages.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 38
The objectors have raised objections against the claim of 24.7% T&D loss made
in the tariff petition of WBSEDCL mentioning that the T&D loss of 25% fixed by
the Commission for 2004-05 should serve as a bench mark with gradual
reduction each year reflecting progressive improvement in the performance of
the licensee in accordance with the statute. The objectors have also expressed
their opinion against the speed of implementation of totally metered supply
calling it sluggish and have particularly mentioned about continuance of un-
metered supply to rural agricultural consumers.
Praying for extension of the benefit of higher load factor rebate for HV Cold
Storage consumers the Association has pointed out that so far efficient utilisation
of energy is concerned, a positive role for Cold Storage consumers is equally
pertinent as their industrial counterpart. The objectors have appealed for
downward revision in meter rent as the cost of static energy meter has come
down appreciably.
The Association has further pointed out that the rent for Cold Storages for
agricultural produces like potato is fixed by the State Govt. in February each year
and any mid term rise in tariff in electricity cannot be recovered by the Cold
Storage owners from the actual users.
3.14 In their submission M/s. Sri Vasavi Industries Limited (SVIL) have mentioned that
in the notification of Govt. of W.B. assets of WBSEB which stand transferred to
WBSEDCL do not include the 132 KV line through which supply from grid
substation is received by SVIL which according to the objectors signify that SVIL
does not use distribution network of WBSEDCL. Hence, such cost of distribution
system according to the objectors which includes 33 KV system and below
should not have any impact on the cost of supply to SVIL.
The objectors have raised objection on the equity base claimed by WBSEDCL.
According to the objectors, the capital cost of assets in use after their date of
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 39
commissioning should only be considered for the purpose of determination of
tariff whereas WBSEDCL has included the cost of assets which are in progress
in 2007-08 and has arrived at the capital cost to determine the equity base. The
objectors have further objected to the use of un-audited figures by WBSEDCL for
2006-07 in order to calculate the proposed tariff for 2007-08. The objectors have
appealed to consider only Rs.1942 crore as equity of WBSEDCL for the year
2007-08 under the total capital cost of assets in use instead of proposed
Rs.2796.31 crore. The objectors have appealed to calculate the return @ 14%
on Rs.1942 crore accordingly and not beyond that.
Objecting to the claim of WBSEDCL that the licensee has attempted to reduce
cross-subsidy of various classes of consumers, the objectors have prayed that
the cost of supply to consumers at different voltages be determined first and then
the amount of cross-subsidy be calculated. This method according to the
objectors will help in coming to the conclusion about reduction in cross-subsidy.
The objectors have further demanded that the cost of supply at 132 KV line for
SVIL be indicated in the tariff order.
The objectors have raised objection against the high T&D loss projected by
WBSEDCL for 2007-08. The objectors opined that T&D loss of 24.7% as per
Restructuring Plan notified by the State Govt. should not be considered for
calculation of tariff for 2007-08. According to the objectors the notification is
neither a policy involving public interest nor a direction to the Commission. The
objectors have appealed for an ‘appropriate’ T&D loss for 2007-08 after lowering
it from 23% allowed by the Commission for 2006-07. M/s. SVIL have appealed
for taking into consideration the stated additional income from trading and U.I
charges earned by the licensee over the envisaged amount in the tariff
formulations of past years and also to take into consideration stated extra gain
made by the licensee in terms of alleged extra sale / sale at higher rate during
the past years. M/s. SVIL prayed for direction to the licensee for purchase of
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 40
cheaper power on Merit Order basis for sale to its consumers in order to protect
their interest. The objectors have also appealed to the Commission not to
consider any increase in demand charge in the year 2007-08.
M/s. SVIL have appealed for an opportunity of hearing to their objections so that
all issues may be clarified.
3.15 The objections submitted by South Eastern Railway have been carefully
examined and it is noted that the objections of South Eastern Railway and those
of Eastern Railways are almost similar in nature. The objections of Eastern
Railway have been considered under para 3.9 above and there being no
substantive difference between the objections submitted by South Eastern
Railway, the objections submitted by South Eastern Railway are not being
repeated here.
3.16 Bharat Chamber of Commerce (BCC) in their submissions have objected to the
revenue requirement of WBSEDCL in their tariff proposal for 2007-08 and has
expressed that the expenses under different heads have been shown
excessively to cover up the inefficiency of the licensee. BCC has appealed to the
Commission not to consider such abnormal rise of tariff because of their
observations / recommendations on the following points:-
(i) 11% rise in demand charge stated to have been proposed by WBSEDCL
is, in accordance with the objectors, a huge increase and off sets the
proposed tariff reduction of Rs.0.05 paise / unit for 11 KV industrial supply
and Rs.0.02 paise / unit for 33 KV industrial supply. The objectors have
further appealed that the Maximum Demand be recorded between 6 A.M
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 41
and 10 P.M in line with practices followed in the year 2002-03, 2003-04
and 2004-05 instead of on a 24-hour basis as is being followed from
2005-06. The objectors have argued that the proposed consideration of
Maximum Demand attained during off-peak hours will discourage higher
drawal during this period and as a result the very purpose of flattening the
load curve may be defeated.
(ii) BCC has also prayed for preventing the charging of additional energy
charge as proposed by WBSEDCL, arguing that the proposal is counter
productive and will harm the interest of the genuine consumers who opt
for right contract demand. The objectors have also proposed that
additional charges payable for exceeding CD / energy drawal should be
indicated in plain and simple English as in earlier years instead of
introducing complex formula which cannot be easily understood by the
ordinary consumers.
(iii) BCC have suggested for squaring up the cross-subsidy from the
electricity duty collected.
(iv) According to the objectors the proposed return on equity is very high. A
permitted return @ 14% (Rs.391.48 crore) has been proposed along with
a provision of Rs.217.61 crore to revenue requirement as depreciation
expenses. According to the objectors this has resulted in a total return on
equity of 22.3%. The objectors have appealed to the Commission to ask
the petitioner to detail out the basis of 22.3% return for review and
consideration.
(v) BCC has objected to high T&D loss proposed by WBSEDCL in their tariff
petition and has appealed to the Commission to segregate the
percentage of technical and administrative loss after computing the
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 42
feeder-wise energy loss. The objectors have also prayed for gradually
restricting the aggregated technical loss to 15%.
(vi) The objectors have objected to the provision of 10 MU of auxiliary
consumption proposed by WBSEDCL for the year 2007-08 being very
high compared to auxiliary consumption actually required for the earlier
years. They have appealed to restrict the auxiliary consumption within
2% maximum stated to be according to the guidelines of CEA. 6 MU
auxiliary consumption in Purulia Pump Storage Project has also been
objected to by the BCC who has appealed for critically examining the
auxiliary consumption versus generation in PPSP.
(vii) The objectors have objected to graded load factor rebate as proposed in
the tariff petition of WBSEDCL. The objectors have suggested that at
best there may be two slabs of load factor – one upto 70% and the other
above 70%. They have also appealed for average load factor for tariff
fixation at 35%.
(viii) The objectors have objected to the PLF in the hydro plant of WBSEDCL
which has been stated to be low arguing that if there is water availability
there is no reason why PLF should be so low and have suggested routine
maintenance to be carried out in phased and planned manner. The
objectors have suggested calculation of tariff on the basis of 65% PLF.
They have also suggested the Plant Availability Factor to be maintained
at 75%.
(ix) BCC has questioned the validity of the government order revising the rate
of interest retrospectively and has requested the Commission to appeal to
the State Govt. to restore their earlier order so that the deducted amount
of Rs.637.96 crore is not progressively recovered by WBSEDCL through
higher tariff burdening the consumers.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 43
(x) The objectors have appealed to the Commission for not authorizing
WBSEDCL to include Rs.27.69 crore against SHRELCOP since the tariff
of erstwhile WBSEB for 2003-04, 2004-05 and 2005-06 have already
been fixed by the Commission in consideration of the proposed facts.
(xi) The objectors have objected to higher purchase from external sources
while operating their own plants at low PLF and PAF.
(xii) Observing that the majority WBSEDCL debtors are government offices
and its own substations, BCC has appealed that the Commission may
direct WBSEDCL to realize the outstanding dues from the government
officials by appropriate deduction from their salaries and by proportionate
cut of central allocation to the government organization.
(xiii) The objectors have suggested that the draft of the tariff prepared by
WBERC should be put on internet and WBERC should invite suggestions
on the same by Consumer Organization, Trade & Industry Association
and Chambers of Commerce before finalizing the tariff. They have also
suggested to set up a Right to Information Cell by the licensee manned
by proper and customer friendly officers.
(xiv) BCC has also appealed that the charging of connection charges and
security deposit by the licensee should be made more transparent to
show that the reasonably incurred expenses have only been charged.
(xv) BCC has further suggested that all projected figures in the tariff petition
should be compared with the figures actually achieved and if the
expenditure has been less than the projected figures then the subsequent
year’s revenue requirement should be reduced suitably.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 44
(xvi) Observing that there has been an average increase in overall tariff for the
TOD consumer particularly for 11 KV and 33 KV industrial consumers, the
objectors have appealed that peak and off-peak rates should be so
adjusted that the average tariff normal, peak and off-peak demand is
ultimately beneficial to the consumers.
(xvii) The objectors have objected to sale of power to Sikkim and outside the
region by the licensee at a cheaper rate and importing of power stated to
be at very high rate. The objectors have further proposed that the fund
recovered through Security Deposit and the fund recovered by the Loss
Prevention Wing of the licensee in one year should be reduced from the
total sum proposed to be attributed to T&D loss in the next year.
3.17 The Commission has carefully noted the objections, suggestions and
comments which the objectors have submitted to the Commission in
response to the publication of the gist of the tariff petition of WBSEDCL
for the year 2007-08 in different newspapers and has considered the
relevant points raised by the objectors pertaining to the said tariff petition
while presenting the analysis and recording its conclusion on various
components of the instant tariff proposal. These are incorporated in
different chapters of this order that follow.
3.18 There however are a few more objections which have not found any
specific mention in the analyses in the chapters that follow. While some of
them are not quite relevant, clarifications in respect of some, in the
opinion of the Commission, will be in order.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 45
3.18.1 Some of the objectors have made a few general remarks about the tariff
proposal of WBSEDCL and have proposed lower average cost of supply,
while some have proposed a specific rate(s) at which a certain group of
consumers as per their proposal should be given supply. In the absence
of any reasoning or logic given by the objectors for such opinion, the
Commission did not take a view on these objections. In another variation
of such a proposal, an objector has suggested deductions / disallowances
on several counts from the claims made in the tariff petition and has
thereby arrived at a lower average cost of supply to the consumers. The
proposed deductions / disallowances, not having been supported by facts
and figures and further not having followed the methods laid down by the
concerned Regulations, could not be considered by the Commission.
3.18.2 Some objectors have raised the question of performance standard of the
licensee and quality of power supply and want to penalize the licensee
through lower tariff. In regard to such objections on standard of
performance of the licensee, the Commission clarifies that such matters
are to be dealt under WBERC’s Regulation No. 24/WBERC dated
18.10.2005 (Standard of Performance of Distribution Licensees Relating
to Consumer Services) and not under WBERC’s Regulation No.
31/WBERC dated 09.02.2007 (Terms and Conditions of Tariff), 2007.
3.18.3 Some of the objectors have blamed the policy of elimination of cross
subsidy which in their opinion have caused higher tariff for small,
domestic commercial consumers. This view is simply not correct. A
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 46
number of groups of consumers, specially those belonging to the LT
categories, i.e, who in general are small consumers still continue to enjoy
cross subsidies.
3.18.4 Some of the objectors have demanded that un-metered supply to
agricultural consumers be continued. The Commission does not find any
rationale behind such a demand which is particularly violative of section
55 of the Act. Some category of consumers have on the other hand
demanded quicker implementation of the fully metered supply. The
demand for continuation of un-metered supply is simply not justified and
the Commission has already fixed a date, being 31.03.2008, beyond
which no supply which is unmetered should be given.
3.18.5. Some of these consumers have also proposed immediate implementation
of the policy of Open Access. The Commission has already specified
regulations on Open Access and its phased implementation in terms of
provision of the Act. Some applications for Open Access have already
been admitted and appropriate orders have been issued by the
Commission for implementation of specific proposals of Open Access.
But the Regulations in this behalf do not now call for any application to
the Commission for availability of open access should be automatically
decided upon in terms of those Regulations within definite time periods.
3.18.6 Another general objection which has been raised involves change in
category of certain types of consumers. Categorization of various service
providers under industrial category is an issue regarding which the
Commission takes a view considering the consumption characteristic of
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 47
consumer, nature of load and its impact on power factor, voltage, loss etc.
for the electricity consumed by the consumer for production / manufacture
of a tangible commodity.
3.18.7 Appealing for a reduction in energy charge, some objectors who are also
consumers of traction power, have argued for a rebate on energy charge
in line with industrial consumers, and have additionally raised objections
against levying demand charge for individual point of supply and have
appealed for such demand charge to be fixed on the basis of
Simultaneous Maximum Demand. But the point remains that the
characteristics of the load of traction is different from that of industrial
consumers and deserve to be treated distinctively. The onus of the utility
to keep its plants & installation ready for providing instantaneous service
to a consumer lies separately on each individual supply point for the
respective contract demand. An opposition to demand charge has come
also from some other objectors who represent industrial consumers. The
same consideration applies to them too. Through the mechanism of
demand charge, the consumer creates for himself a right vis-à-vis the
supplier to obtain the supply, and also simultaneously helps the supplier
to meet a part of the latter’s fixed cost. This mechanism helps both the
supplier and the consumer and there does not appear to be any reason
for abolishing the same particularly when the concept is being applied to
the process of tariff determination over a long time in the past. Also, there
does not appear to be any rationale for charging demand charge only
once for a consumer even though the latter may have a large number of
supply points that have often different geographical locations, or different
purposes of consumption or even different voltages.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 48
3.18.8 Some consumers like Cold Storages, Tea Gardens etc. have raised
objections against uniform demand charge throughout the year in the light
of seasonal nature of their energy requirement. The Commission clarifies
that in accordance with the regulations specified by the Commission the
consumers have enough scope and right to revise their contract demand
at appropriate time which will reduce the adverse impact of demand
charge on low energy consumption during lean season.
3.18.9 One of the objectors has called for squaring off cross subsidies with
Electricity Duty. But the latter, though collected through the bills from the
consumers of electricity by the licensees, is not an element of the tariff
determined in terms of the relevant provisions of the Electricity Act, 2003
and the concerned Regulations made thereunder. No squaring off
between the two is therefore permissible.
3.18.10 There are some objectors who are against any increase in the load factor
and power factor surcharge, while some other objectors have proposed
higher rebates and lowering of the threshold limits for qualifying for the
rebates. While the Commission has, after a careful consideration of all
relevant factors, taken appropriate views that may be seen at the
concerned portions of this tariff order, it needs to be stated that rebates
and surcharges of various amounts are universally used as incentives
and disincentives for leading the consumers to particular directions that
are considered useful and beneficial to the entire system. These rebates
and surcharges in question tend to improve capacity utilization and
voltage of supply besides leading to reduction of loss in the distribution
system. There, therefore, is no technical or economic reason for
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 49
accepting such suggestions as those made by the first group of objectors.
Simultaneously, there is also no reason to increase the extent of rebate or
to lower the qualifying thresholds only to benefit a particular group of
consumers. There should be a judicious balancing between these two
extreme views.
3.19 There are quite a few other objections and suggestions that have not
been mentioned in the foregoing sub paragraphs from 3.18.1 to 3.18.9.
But the Commission has gone into merits of all such objections and
suggestions irrespective of their specific mention or absence of such
specific mention in the instant tariff order.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER – 4LAW POINTS ON HEARING
West Bengal Electricity Regulatory Commission 50
4.1 One issue that has been raised by more than one objector concerns the question
of hearing, i.e., these objectors have expressed a desire to be heard before the
tariff is determined by the Commission. Since this is an oft repeated issue, the
Commission would like to give the matter a close look before going into the nitty
gritties of determination of tariff. Besides, the Commission has not, as a matter
of fact, given any hearing either to the tariff petitioner or any of the objectors by
way of observing procedural formalities. The matter therefore deserves a
detailed treatment at the very beginning.
4.2 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.
4.3 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,
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 51
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.
4.4 It is also relevant to note that the Electricity Act, 2003 has laid down the specific
requirement of hearing wherever the same is intended. The Act has entrusted the
Commission with different kinds of functions. Determination of tariff under section
62 read with 64 is only one of such functions. In respect of some functions, the
statute has clearly mandated the Commission to provide hearing. Some
examples of such sections are being 15(6)(b), 57(2), 142 and 143. These may
be seen in contrast to sections 19(3), 63, 128(6) and 130 where the scope of
hearing has deliberately excluded. It may also be noted that if tariff is determined
under section 63 of the Act through a process of bidding, no hearing is required
to be given to anyone.
4.5 Moreover, in line with the Electricity Act,2003 Commission has also framed the
West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2007. Regulation 2.10.1 of said WBERC (Terms & Conditions of
Tariff) Regulations 2007 also exclude the scope of any hearing either to any
licensee or to a generating company or to the consumer or to the public while
determining tariff.
4.6 The Commission is, therefore, of the opinion that under section 64(3)(a) read
with regulation 2.10.1 of the WBERC (Terms and Conditions of Tariff)
Regulations, 2007 no hearing is required to be given either to a tariff applicant or
to the consumers or to the public. What is required is consideration of
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 52
suggestions and objections received from the consumers and / or public.
Therefore, the Commission rejects the contention of all the objectors who have
sought hearing in the process of determination of tariff.
4.7 This point of law, as to whether in view of section 64 of the Act hearing is to be
given to the licensee and consumers at large before tariff is determined was an
issue in a writ petition being W.P.No.16166(W) of 2004 filed before the Hon’ble
High Court, Calcutta in which West Bengal Electricity Regulatory Commission
was one of the respondents. The Hon’ble Justice Pinaki Chandra Ghose by an
order dated 04.10.2004 having considered the judgment of the Hon’ble Supreme
Court reported in (2002) 8 SCC 715, inter alia held that :
“ After going through the said Regulations it appears to me that
hearing was not contemplated under the said Section 64 of the said Act
and the Regulations framed thereunder. Therefore, in my opinion, not
granting of a hearing to the petitioner cannot said to be violation of natural
justice after construing the said Act and the Regulations framed
thereunder. Therefore, in my opinion, it cannot be said that at this stage
the said order has been made arbitrarily or any violation of natural justice
……… “
4.8 The aforesaid order dated 4th October,2004 of the Hon’ble Justice Pinaki
Chandra Ghose was challenged before the Hon’ble Division Bench of the
Hon’ble High Court in an appeal being MAT No.596 of 2005. The Hon’ble
Division Bench comprising of the Hon’ble Justice Aloke Chakrabarti and the
Hon’ble Justice S.P.Talukdar affirmed the order of the Ld. Single Judge by an
order dated 25th February 2005 and, inter alia held that :
“ ……. After due consideration of the relevant provisions of the Act,2003
and having regard to the submission made by the learned Counsel for the
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 53
parties, we think that what is required at the stage of determination of
tariff is consideration and not ‘hearing’ ………”
4.9 However, the Writ petition was dismissed for default by an order dated 29.03.07
by the Hon’ble Justice Aniruddha Bose due to non-appearance of the
Ld.Advocate for the writ petitioner. The Commission records here that the
Commission is aware of the fact that the aforesaid orders were interim in nature
and by virtue of the order dated 29.03.07 to the effect of dismissal of default of
writ petition being W.P 16166(W) of 2004, those earlier orders of Hon’ble High
Court, Calcutta do not exist. Nonetheless, the relevant part of the aforesaid two
orders are recorded to here only for the fact that the view taken by the
Commission was accepted by the Hon’ble High Court, Calcutta, while passing
the interim order prior to dismissal of the writ petition on the ground of non-
appearance of the Ld. Advocate for the writ petitioner.
4.10 The Commission therefore passes the instant tariff order for WBSEDCL for the
year 2007-08 without giving any hearing to either the tariff petitioner or any of the
objectors, but after taking into consideration all suggestions and objections
received from the public.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER – 5SCHEDULE OF PURCHASE, OWN GENERATION
AND ENERGY BALANCE
West Bengal Electricity Regulatory Commission 54
5.1 West Bengal State Electricity Distribution Co. Ltd. (WBSEDCL) has, with effect
from 1.4.2007, become a major deemed distribution licensee in the State and
has been entrusted with the responsibility to supply electricity to different
categories of consumers scattered throughout the State barring the licensed area
served by CESC Ltd., Durgapur Projects Ltd. and DPSC Ltd. Only a small part
of the energy requirement for supply to WBSEDCL consumers comes from the
hydro power stations in its ownership while the balance energy requirement for
distribution and supply in its licensed area is sourced by way of purchase.
Gross purchase of energy requirement during the year 2007-08 has been
assessed by the licensee to be 23,359.52 MU out of which the major quantum of
16,020 MU is proposed to be procured from thermal power stations from
WBPDCL including the power from upcoming units of Sagardighi Thermal Power
Station and Bakreswar (Unit 4 & 5) Thermal Power Station. From Central sector
generation 3,200 MU of energy is proposed to be procured from Thermal Power
Stations of NTPC, 680 MU has been assessed to be procured from Chukha &
Kurichhu (Bhutan) through PTC and 1,350 MU will be procured from Tala Hydro
Electric Power (Bhutan). From Rangit Hydro Electric Power (NHPC) 74 MU is
proposed to be procured and a total of 752 MU is proposed to be procured from
DVC which includes 62 MU of peak power. Balance requirement of energy is
stated to be procured from other state sector utilities like DPL, DPSCL and by
importing energy through traders. In addition to this green power from co-
generation, WBREDA etc. shall also be procured.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 55
The planning for procurement of energy is said to have been done on the basis
of following factors:-
(i) Consumption under different categories of consumers estimated from the
trend of growth of consumption of respective categories.
(ii) Sale to CESC Ltd. and DPSC Ltd.
(iii) Sale to Govt. of Sikkim @ 20% of sent out generation from Rammam
Hydel Station Stage-II.
(iv) Sale of incidental surplus energy to others through competitive bidding.
(v) Estimated consumption & loss in distribution system of WBSEDCL.
(vi) Generation that may be available from its own generation.
5.2 The Commission has assessed requirement of energy intake of WBSEDCL from
the sources available in the State. The supply to be received by WBSEDCL from
DPL has been assessed at three different voltage levels of 132 KV, 33 KV and
11 KV. In regard to supply from DPSCL, purchase of energy at 18 different
locations has been considered. Supply to DPSCL at Bankola point has been
treated separately as sale of energy by WBSEDCL to DPSCL. Purchase of
power from Kolaghat, Bakreshwar, Bandel and Santaldihi Power Stations of
WBPDCL has been assessed by the Commission on the basis of energy sent out
from these power stations as allowed by the Commission in the tariff order of
WBPDCL for 2007-08. Power from upcoming power stations of WBPDCL, i.e.,
Bakreswar, Santaldihi and Sagardighi have been considered for a total quantum
of 2805.00 MU.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 56
The requirement of energy intake from sources available in the State as
proposed by WBSEDCL and the quantum as allowed by the Commission are as
under:-
Sources Supply (MU)As projected by
WBSEDCLAs assessed by the
CommissionWBPDCL 16020.00 16833.13
DPL 718.00 384.24
DPSC Limited 160.00 160.00
Hooghly Metcoke 295.00 295.00
WBREDA 0.32 1.00Green Power & Cogen. 70.00 70.00
CESC Ltd. (Radial) 71.00
Total:17263.32 17814.37
5.3.1 Some of the objectors have objected to higher quantum of purchase from
external sources while operating the own plants of WBSEDCL at low PLF and
PAF. On the said issue one objector has appealed for rejection of proposal of
WBSEDCL for excess purchase.
The Commission has treated the PLF of hydel plants of WBSEDCL and their
availability separately under paragraph 5.4.4.
The Commission has considered the following additional factors in allowing the
quantum of power purchase requirement by WBSEDCL to meet its commitment
to supply electricity to its own consumers in 2007-08:-
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 57
(i) Need to supply to other distribution licensees of the State including supply
to meet the high peak requirement of these licensees after meeting the
peak requirement of the LT dominated own demand of WBSEDCL.
(ii) Full utilization of allocation from Central Sector.
(iii) Emergency procurement to meet the peak demand in its own licensed
area and Merit Order of purchase.
(iv) Additional requirement of energy for making the sale of incidental off-peak
surplus marketable. (The incidental surplus arises out of low system load
factor and high peak / off-peak ratio in thermal dominant WBSEDCL
system).
5.3.2 One of the objectors has objected to the purchase of power from DPSCL @
Rs.3.30 per unit and raised the question about the quantum of purchase from
DVC. The purchase of power by WBSEDCL radially from DPSCL and DVC is in
the process of being totally phased out by commissioning of newly constructed
Asansol 220 KV substation and the associated lines for taking over the entire
load in and around Asansol area. It has been reported that the work is in the
advance stage and is likely to be completed shortly. The Commission urges
WBSEDCL to complete the infrastructure to ensure that the demand in its
licensed area is met from state grid instead of through radial purchase.
The Commission has carefully examined the quantum of power purchase
allowed to WBSEB for 2006-07 and does not agree with the objectors view that
the quantum of power purchase allowed by the Commission for the year 2006-07
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 58
was higher than ‘actual’ power purchase of WBSEB in that year. The
Commission shall, however, in accordance with the provisions of the tariff
regulations take appropriate measure in this regard on getting actual audited
figures in future.
Some objectors have objected to the rate of purchase of wind power from
WBREDA. The Commission has noted that the purchase cost proposed by
WBSEDCL in the tariff petition is in accordance with WBERC Regulation
No.28/WBERC dated 04.05.2006. Some objectors have also suggested to
increase the purchase from renewable sources. The aforesaid regulation
specified by the Commission regulates the gradual rise of such purchase by each
licensee.
5.3.3 The following statement shows the purchase proposal put up by WBSEDCL and
the purchase programme approved by the Commission. The statement also
shows the source-wise cost of power purchase taking into consideration grid
loss, transmission charges, SLDC / ERLDC charges & other charges associated
with the purchase.
SCHEDULE OF PURCHASE
PARTICULARS As Projected As Found Admissible
MU Rs. Lakh MU Rs. Lakh(i) WBPDCL: (Existing)
(a) Kolaghat(b) Bakreswar(c ) Bandel(d) Santaldihi
(New Units)
6760.004200.001860.001150.002050.00
6957.243810.441991.761268.692805.00
131770.7267657.9341636.8125012.5053202.44
Total 16020.00 269861.01 16833.13 319280.40
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 59
(ii) DPL(a) 132 KV(b) 33 KV(c) 11 KV
565.00145.00
8.00
12372.373175.21
198.24
231.24145.00
8.00
5611.383518.64
194.13Total DPL: 718.00 15745.82 384.24 9324.15(iii) DPSC Ltd. 160.00 5280.00 160.00 5676.18
(iv) Hooghly Metcoke 295.00 5487.89 295.00 5487.88
(v) NTPC(a) Farakka(b) Talcher
2600.00600.00
Total 3200.00 53898.08 3200.00 53897.60
(vi) NHPC (RangitHydro)
74.00 1475.56 74.00 1475.56
(vii) PTC(a) Chukha Hydel(b) Kurichhu Hydel
530.00150.00
530.00150.00
Total PTC: 680.00 10889.52 680.00 10889.52
(viii) Tala 1350.00 24840.00 1350.00 24840.00
(ix) WBREDA 0.32 8.00 1.00 25.00
(x) DVC(a) 32 KV (Radial)(b) 33 KV (Radial)(c ) 11 KV (Radial)(d) Peak
46.00643.00
1.0062.00
21040.172045.57
690.0062.00
21040.172045.57
Total DVC: 752.00 23085.74 752.00 23085.74(xi) Govt. of Sikkim 0.20 7.44 0.20 7.44(xii) From Trader 40.00 1944.00 40.00 1944.00(xiii) Green Power(Electro Steel)
70.00 1771.00 70.00 1771.00
(xiv) CESC Ltd. (Radial) 71.00 1889.00Gross Total: 23359.52 414294.06 23910.57 459593.47
Less : CTS Grid Loss: 208.00 206.33Nett Purchase & cost 23151.52 414294.06 23704.24 459593.47
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 60
Add: Other costs associatedwith purchase
(a) Transmissioncharges
(b) SLDC/ERLDC &other charges
(c) Wheeling Chargesto CESC/DVC
7146.00
216.96
2.00
7146.00
Less: Rebate for timelypayment on purchasecost 1555.14 1555.14
Grand Total: 23151.52 420103.88 23704.24 465184.33
Average(P/kwh) 196.24
5.4.1 In the next few paragraphs the Commission gives its views on the generation of
power by WBSEDCL from its own sources and draws an energy balance taking
into consideration the purchase requirement as provided in the previous
paragraphs, sale to persons other than the licensees and consumers, supply of
power to other state utilities and admissible transmission and distribution losses.
5.4.2 Part of the total requirement of power is met from the generation at the hydel
power stations of WBSEDCL. Besides hydel power stations, WBSEDCL will also
avail power from the Purulia Pump Storage Project which is in the advance stage
of construction. In addition to this a diesel generating station at Rudranagar in
Sagar Island is also programmed to generate to supply the load in that area with
supplementary support from non-conventional energy sources (solar power).
Gas Turbine stations at Kasba, Haldia and Siliguri totaling 90 MW capacity which
were built to mitigate the peak shortage and to meet the emergency requirement
are now stated to be in defunct condition due to normal wear & tear. No
generation from these power stations and no cost for these power stations have
been considered for the year 2007-08. The Commission has noted that fixed
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 61
assets of the aforesaid gas turbine stations are depreciated almost upto the level
of residual value and hence there is insignificant implication of keeping these
stations out of operation in the revenue requirement of WBSEDCL.
5.4.3 Estimated generation from own generating stations of WBSEDCL has been
shown as under:-
Unit PLFIn %
GrossGeneration
(MU)
AuxiliaryConsumption
(MU)
EnergySent out
(MU)Jaladhaka 45.66 140.00 1.25 138.75
Rammam 49.24 220.00 1.55 218.45
Teesta 16.91 100.00 1.00 99.00
Fazi 9.51 2.00 0.03 1.97
Little Rangeet/ Bijanbari
45.66 6.00 0.06 5.94
Rinchinton 39.95 7.00 0.06 6.94
Mangoo -Kalikhola
45.66 12.00 0.05 11.95
Purulia P.S.P.Generation
17.45 860.00 6.00 854.00
Total : 1347.00 10.00 1337.00
Generationfrom dieselstation
0.64 - 0.64
Grand Total : 1347.64 1337.64
5.4.4 The objectors have attributed the reason of higher purchase from external
sources to the low PLF in the own hydro power stations of the licensee. The
objectors have proposed to consider higher PLF and availability factor for these
power stations of WBSEDCL while computing the tariff for 2007-08.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 62
It has been observed that for Jaldhaka HEP, the petitioner has projected a PLF
of 45.66% for 2007-08 which is lower than both the actual PLF attained in 2005-
06 and estimated PLF of 2006-07. The licensee has not given any valid reason
for projection of such a PLF. The Commission also cannot allow such gradual
erosion of performance without any valid reason. The Commission, therefore,
disallows projected PLF of 45.66% for 2007-08 and has considered a PLF of
49% for Jaldhaka H.E.P which in the view of the Commission is achievable
during the year 2007-08 with normal monsoon. The PLF of Teesta Canal Fall
has also been considered at 17.2% rejecting the estimated PLF of 10.15% for
2006-07. Regarding Plant Availability Factor the Commission urges the licensee
to carry out all maintenance & overhauling work during low-hydro period so that
effective availability during high-hydro period improves. On the basis of above
reasoning the Commission has considered the generation from own generating
plants of WBSEDCL as follows:-
Unit PLFIn %
GrossGeneration
(MU)
AuxiliaryConsumption
(MU)
EnergySent out
(MU)Jaladhaka 49.00% 149.00 1.25 147.75
Rammam 49.25% 221.00 1.55 219.45
Teesta 17.20% 101.00 1.00 100.00
Fazi 9.51% 2.00 0.03 1.97
Little Rangeet / Bijanbari 45.66% 6.00 0.06 5.94
Rinchinton 39.95% 7.00 0.06 6.94
Mangoo - Kalikhola 45.66% 12.00 0.05 11.95
Purulia P.S.P.Generation
17.45% 860.00 6.00 854.00
Total : 1358.00 10.00 1348.00
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 63
Generation from dieselstation
14.60% 0.64 NIL 0.64
Grand Total : 1358.64 1348.64
5.5.1 After considering the projection of energy purchase and the projection of energy
availability from own generation, the Commission is to examine the energy
balance as it comes out of the submission of WBSEDCL as under:-
All figures in MU
1 Total Energy purchase at 400 / 220 / 132 KV 22332.25
2 Less: Grid loss for CTU 208.00
3 Sent out Energy from Hydel Power Stations and injectedto STS at 132 KV 483.00
4 Sent out Energy from PPSP and injected to STS at 400 KV 850.00
5 Total Energy injected to STS : 23457.25
6 Transmission Loss in MU @ 4% 939.25
7 Energy Transmitted to WBSEDCL (MU) 22518.00
8 Energy Input to WBSEDCL from WBSETCL (MU) 22518.00
9 Energy Purchase at 33/11 KV & Generation at 11 KV (MU) 1027.91
10 Energy Available in the System (MU) 23545.91
11 Unit Exported (MU) 5075.00
12 Sale to Sikkim (MU) 80.00
13 Sale to CESC Ltd. & DPSC Ltd. (MU) 945.00
14 Loss for CESC Ltd. & DPSC Ltd. (MU) 41.41
15 Unit used for pumping energy to PPSP (MU) 1130.00
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 64
16 Additional Units allowed against pumping energy (MU) 35.00
17 Additional Units to be allowed by Commission forwheeling of power through CESC Ltd. system (MU) 4.74
18 Total Energy goes out of system (MU) 7311.15
19 Net Energy in System (MU) 16234.76
20 Units sold to consumers (MU) 12896.00
21 Units utilized in own premises including constructionpower (MU) 36.00
22 Overall Utilisation (MU) 12932.00
23 Distribution Loss in MU 3302.76
24 Distribution Loss in % 20.34
5.6 In regard to the energy sourced from own generation and net purchase the
same has already been viewed earlier. Each of the components in the energy
utilisation part is being analysed with views hereunder one by one.
5.6.1 Sales to own consumers:
In view of revocation of distribution license of Singur Haripal Rural Electric
Cooperative Society Ltd. (SHRELCOP), WBSEDCL is acting as an administrator
of the utility SHRELCOP w.e.f. 1.4.2007. The total projected consumption of
different categories of consumers of the said Society has, therefore, been
clubbed in the projected consumption of WBSEDCL for the respective
categories. The entire requirement of energy of the Society has been proposed
to be met by WBSEDCL. The total sales during 2007-08 to different categories
of consumers have been projected to be 12,896 MU with the following break up.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 65
Voltage of Supply Category Projectedconsumption
in MU(a) L & MV supply
(i) Domestic 4260.00
(ii) Commercial 885.00(iii) Industrial 854.00(iv) PW Works 92.00(v) Irrigation / Agriculture 950.00(vi) Public Lighting 95.00
Sub-total (a) 7136.00(b) HV & EHV supply
(i) Domestic 14.00(ii) Non Industrial & Others 724.00(iii) Industrial 4337.00(iv) Traction 685.00
Sub-total (b) 5760.00TOTAL SALE TO OWNCONSUMERS (a + b) 12896.00
The total sales of 12896 MU during 2007-08 to different categories of consumers
show rise of 10.63% over the total estimated sale during 2006-07 and 21.35%
increase from level of sales during 2005-06. The Commission considers such
growth rate rational in the existing circumstances and urges the licensee to
complete 100% metering arrangement expeditiously to record higher growth rate
of sale of energy. The Commission agrees with the projected sales of 12896 MU
for the year 2007-08.
5.6.2 WBSEDCL has projected 36 MU as consumption at its own premises including
the construction power. Actual figure for such consumption for 2005-06 was 30
MU and the estimated figure for 2006-07 was 34 MU. The Commission finds the
requirement of 36 MU for own consumption reasonable and agrees with the
projected figure.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 66
5.7 Transmission & Distribution (T&D) Loss:
5.7.1 The loss in the distribution system of WBSEDCL has been projected by the
licensee at the level of 20.34% for the year 2007-08. Assuming 4% transmission
loss in the transmission system of WBSETCL the energy output from WBSETCL
gets reduced by 4% and enters WBSEDCL system as input. 20.34% distribution
loss as claimed by the licensee at that lower input energy base is equivalent to
19.53% distribution loss when converted into the same base energy for input of
WBSETCL. But some of the objectors have inferred that with 4% transmission
loss in WBSETCL System & 20.34% Distribution loss as claimed in WBSEDCL
System total loss in the combined systems of WBSETCL & WBSEDCL (which is
equivalent to erstwhile WBSEB System) adds upto 24.34%. The Commission
does not agree with such inference as the same is based on a wrong method of
calculations. The Commission is of the view that the T&D loss as projected in
combined systems of WBSEDCL & WBSETCL is equal to (19.53 + 4)% =
23.53%, due to the reasons already discussed.
5.7.2 The Commission has received many observations and objections from almost all
the objectors in respect of the T&D loss that should reasonably be allowed to the
licensee. These objectors have suggested various levels of lower percentage for
T&D loss for determining the tariff. Some of the objectors have linked the T&D
loss with rebate allowed on energy charge and have proposed higher percentage
of rebate in order to compensate for high T&D loss. The Commission has
carefully considered all the observations made by the objectors and has taken
note of the suggestions made by the objectors to contain the rate of T&D loss to
a reasonable level. The licensee in their petition has on the other hand tried to
explain that, due to severe financial constraints of the past years proper
infrastructure as warranted by prudent utility practice could not be developed.
Moreover, due to massive programme of rural electrification under APDRP and
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 67
RGGVY schemes, extensive LT supply has given rise to the higher growth in LT
category causing further deterioration of HT / LT ratio. The question before the
Commission therefore is as to what extent the T&D loss in the system of
WBSEDCL can be allowed for recovery from the consumers for the year 2007-08
and at the same time maintain a reasonable balance between the interest of the
consumers and the licensee.
5.7.3 For the purpose of energy balance the Commission allowed 23% T&D loss for
2006-07 for WBSEB system which was bifurcated during restructuring of WBSEB
into the transmission system of WBSETCL and distribution system of WBSEDCL.
The T&D loss of 24.7% has been projected by WBSEDCL in the combined
system of WBSETCL & WBSEDCL in 2007-08 considering 20.34% distribution
loss in the WBSEDCL system. The Commission does not agree to projected
20.34% of distribution loss and allows 19.50% as distribution loss for WBSEDCL
system. The Commission, however, has not taken any view on the programme of
reduction of T&D loss during the next five years as submitted by WBSEDCL in
the tariff petition in pursuance of the Directives of the Commission issued in the
tariff order for 2006-07. The Commission has already engaged consultants in
this regard whose report is expected shortly. The Commission will take a view
on the programme of reduction of T&D loss thereafter.
5.8 Bulk supply to other licensees:
The other licensees in the State who were traditionally receiving bulk supply of
power from WBSEB, the erstwhile licensee, are CESC Ltd., DPSC Ltd. and
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 68
SHRELCOP. Since the distribution license of SHRELCOP has been revoked
and WBSEDCL is acting as administrator the total projected consumption of
different categories consumers of the said Society have been clubbed in the
projected consumption of the identical categories of erstwhile WBSEB. The
supply of energy to DPSC Ltd. at 33 KV at Bankola has been treated as sale of
energy by WBSEDCL to DPSC Ltd. totally de-linking this sale from purchase of
power from DPSC Ltd. by WBSEDCL at 18 different locations near and around
Asansol. WBSEDCL has considered a sale of 45 MU of energy to DPSC Ltd.
DPSC Ltd. in its tariff petition has projected 40.83 MU as its purchase quantum
from WBSEDCL at Bankola. Commission has taken a view to take into
consideration the purchasers requirement in this regard and accepts 40.83 MU of
energy as sale of WBSEDCL to DPSC Ltd. in 2007-08. On the basis of present
trend of drawal of CESC Ltd. at four different points the consumption of CESC
Ltd. during 2007-08 has been projected to be 900 MU. CESC Ltd. on the other
hand has projected a requirement of 1351 MU of energy for purchase from
WBSEDCL in 2007-08. The Commission after full analysis of requirement of
CESC Ltd. considers 1299.36 MU of energy as sale of WBSEDCL to CESC Ltd.
during 2007-08. Considering 74 MU of energy for supplying to CESC Ltd.
radially, total sale to CESC Ltd. comes to 1373.36 MU. The Commission also has
assessed the requirements of DPL to take supply from WBSEDCL during the
period before its 300 MW unit is commissioned. Such requirement will be 184.00
MU.
The Commission is of considered view that the demand of bulk supply to other
licensees in the State should be met first by WBSEDCL. After meeting the
energy requirement of its own consumers and the requirement of aforesaid
licensees of the State, the residual energy which would be available shall be
utilized for sale to person other than the licensees and own consumers.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 69
The quantum of bulk supply to the licensees in the State, thus is considered, as
under:-
M.U
DPL 184.00
CESC Ltd. 1373.36
DPSC Ltd. 40.83
Total : 1598.19
In addition to the above quantity, WBSEDCL will be supplying 43.69 MU to
Sikkim under the existing agreement. The total of such bulk supply, thus, comes
to 1641.88 MU.
5.9 Supply of pumping energy to P.P.S.P:
Purulia Pump Storage Project with the installed capacity of 900 MW is nearing
completion. This project will absorb off-peak surplus of the system in its pumping
mode and will generate 900 MW of peak power when fully commissioned. The
project will contribute 1700 MU per year. In the year 2007-08 gradually all the
units are expected to be commissioned and total sent out energy to be available
from PPSP during 2007-08 has been projected at 850 MU. As per the design
data the energy requirement at the 400 KV bus bar at P.P.S.P for pumping mode
operation is 1130 MU.
5.9.1 One of the objectors in its objection has argued that the proposal of WBSEDCL
to procure 850 MU of energy in 2007-08 by purchasing 1130 MU of energy for
use in pumping mode is uneconomical and hence Rs.52.64 crore as the cost of
excess power purchase on this account be disallowed. The Commission after
carefully considering the objection rejects the same inspite of the fact that the
inherent characteristic of a pump storage project is such that it consumes more
than the delivered energy. It is important to note that energy supply to PPSP is
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 70
for utilization of off-peak surplus for the purpose of meeting the peak shortage
and is one of the recognized methods of indirect short time storage of electricity.
The ability of the pump storage plant to quickly change over from pumping mode
to generation mode with the facility for fast loading makes this type of generation
particularly useful for meeting grid emergency. Further, it is impossible to
overlook the latent financial benefits of PSPP. It must be noted that the cost of
peak power is rising fast and availability of peak power from external sources has
been coming down sharply due to all out peak shortage all over the country. In
the meantime U.I rate has already been enhanced by CERC. All this signifies
that peak power is going to be costlier than it is now, and for quite some time to
come, it may well continue to be so. On the other hand, off peak power is and will
be considerably cheap. Therefore, obtaining peak power in lieu of off peak power
should yield favourable financial results. Moreover, full requirement of energy for
PPSP is less than 10% of total purchase of WBSEDCL in 2007-08 and the
impact on cost will be marginal keeping in view the advantage of meeting the
peak and trend of rise in total purchase quantum of energy in future years. Some
objectors have also objected to the projected figure of auxiliary consumption of
P.P.S.P. The Commission will review the requirement in due course when actual
quantum of pumping energy utilized in PPSP and its auxiliary consumptions are
available.
5.9.2 Under the circumstances, the considered view of the Commission is that proper
utilization of PPSP will help in reducing peak shortage, will facilitate purposeful
utilization of thermal capacity and will assist in protecting the consumers’ interest
in equitable supply of power during peak and off peak. The Commission
therefore, does not agree with the opinion of the objector that energy from PPSP
is uneconomical.
For the year 2007-08 the Commission accepts the figure of supplying 1130 MU
of energy for use in pumping mode and 6 MU of energy for auxiliary
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 71
consumption. However, the Commission does not agree with the 35 MU of
projected energy as additional units against pumping energy for 2007-08.
5.10 Energy Balance:
Based on the analysis done in the preceding paragraphs and decisions recorded
hereinabove, the Energy Balance for WBSEDCL for the year 2007-08 is drawn
as follows:
ENERGY BALANCE
Sl.No. Particulars MUA. ENERGY INPUT TO THE DISTRIBUTION SYSTEM
1. Gross energy from Central Sector allocation for WBSEDCL 5304.002. Energy loss in Central Transmission System @ 3.89% 206.333. Net energy injected from C.S into WBSETCL (1-2) 5097.674. Net energy injected into WBSETCL against purchase from State
sources & traders17507.57
5. Net energy injected into WBSETCL from own generation 1348.646. Total energy injected into WBSETCL (3+4+5) 23953.887. Transmission loss in WBSETCL @ 4% 958.158. Net energy available in WBSETCL (6-7) 22995.739. Energy outgo from WBSETCL transmission system to
a) CESC Ltd. 1299.36b) Sikkim (as per contract) 43.69c) DPL 184.00d) PPSP 1130.00e) Persons other than licensee of the State &
own consumer 5229.7210. Total energy outgo from WBSETCL (sum a : e) 7886.7711. Energy input from WBSETCL to WBSEDCL (8-10) 15108.9612. Energy injected directly to WBSEDCL at 33 KV & below 1099.0013. Total energy available in WBSEDCL own system (11+12) 16207.96
B. ENERGY UTILISATION IN WBSEDCL SYSTEMa) Units sold to own consumers 12896.00b) Units sold to DPSC Ltd. 40.83c ) Units sold to CESC (Radial) 74.00d) Units utilised in own premises including construction power 36.00e) Un-utilised units (Distribution loss @ 19.5%) 3161.13
Total energy (sum a: e) 16207.96
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 72
5.11 If the abnormal power loss can be plugged through the measures taken /
proposed to be taken by WBSEDCL, the target of normative sale should be fully
achievable.
5.12 The power purchase cost as allowed in the present order is subject to periodical
adjustment in terms of the formula for Fuel & Power Purchase Cost Adjustment
(FPPCA) as specified in relevant regulations.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER –6FIXED CHARGES
West Bengal Electricity Regulatory Commission 73
6.1 The projected amount of total fixed charges, as per the submission of WBSEDCL
comes to Rs.210111.16 lakh. This amount is net of the capitalization of the part
of the expenses under different heads chargeable to ongoing capital
construction works. The total income to be generated from the different non-tariff
sources has been estimated to be Rs.16805.24 lakh. Hence, the net amount of
fixed charges proposed to be built in the tariff recoverable from the consumers
and for bulk supply of energy to other licensees of the State comes to
Rs.193305.92 lakh. The amount of fixed charges to be recovered from the
consumers has, however, been proposed to be reduced by 90% of the gains to
be derived by the applicant from the sale of energy by it to the persons other
than the licensees and consumers in terms of the Commission’s Tariff
Regulations. Such amount of benefits to be passed on to the consumers has
been estimated to be Rs.76067.86 lakh. The Commission has taken up a
prudent analysis of the expenditures/ charges under different heads with
reference to the reasonableness.
6.2 Employees’ Cost
The total amount of employees’ cost projected for the year 2007-08 is
Rs.36954.32 lakh with the following break-up:
Rs. in lakh
Generation 1235.77
Distribution 35718.55
Total 36954.32
The projected amounts include the provision for contributions to employees’
terminal benefits funds like PF and gratuity.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 74
The Commission has viewed the amount of projected expenditure with reference
to the actual expenditure incurred by the erstwhile WBSEB in 2005-06 i.e., prior
to it’s re-structuring for all three functions of generation, transmission and
distribution. The actual expenditure was for a total amount of Rs.42476.00 lakh.
The estimated expenditure during 2006-07 is Rs.48255.29 lakh considering
WBSETCL and WBSEDCL together as against projected expenditure of
Rs.4839.03 lakh and Rs.36954.32 lakh respectively. It, therefore, comes out that
the projected expenditure towards employees’ cost considering two successor
companies of erstwhile WBSEB, is considerably less than the actual expenditure
of 2005-06 and also of the estimated expenditure of 2006-07. This is mainly due
to creation of a separate employees’ terminal benefit fund through Bonds to take
care of the earlier liabilities in this regard. The Commission finds the projected
expenditure under the referred head justifiable and admits the same.
6.3 Repairs and Maintenance
The projected expenditure towards Repairs & Maintenance for the generation
and a distribution function of WBSEDCL is as under:
Rs. in lakh
Generation 669.50
Distribution 8771.72
Total 9441.22
There is marginal difference in the figures of Rs.9448.19 lakh in this regard taken
by the applicant in the projected statement of Summarized Revenue
Requirement. The comparative actual expenditure figure for the year 2005-06 in
respect of WBSEDCL is not separately available. The Commission, therefore,
has based its analysis on the estimated expenditure in the base year, i.e., 2006-
07. The instant tariff revision application has been filed by WBSEDCL after
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 75
completion of the financial year 2006-07 and hence the figures of estimated
expenditures can be termed as un-audited actuals. Such un-audited actual
repairs and maintenance expenses for generation function for the aforesaid
previous year was Rs.796.59 lakh as against which the applicant has asked for
Rs.669.50 lakh for the year 2007-08. The Commission admits the same. So far
as distribution function is concerned, the un-audited actual expenditure in the
year 2006-07 came to Rs.8751.03 lakh. A marginal increase on this score in
2007-08, is, in the considered opinion of the Commission, justifiable in view of
the additions in the distribution networks over the year. The total expenditure
towards repairs and maintenance (including cost of consumables) for the year
2007-08 is, thus, admitted for Rs.9440.22 lakh.
6.4 Rent, Rates & Taxes
The amount claimed towards Rent, Rates & Taxes (other than the tax on income
and profit) in the statement of Summarized Revenue Requirement) is for
Rs.615.45 lakh. The amount so claimed is not supported by the details of
function-wise expenditures statements submitted in Format 1.12, 1.15 and 1.17.
Based on the information provided to the Commission in Form 1.17 (other
expenses centrally maintained), the expenditures on this account are admitted as
under:
Rs. in lakh
Generation 1.93
Distribution 78.59
Total 80.52
6.5 Legal Expenses
The estimated legal expenses during 2006-07 for the generation function and
distribution function are for Rs.2.10 lakh and Rs.83.92 lakh respectively. Allowing
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 76
average 5% increase, we admit for a total amount of Rs.90.32 lakh for the year
2007-08 as against Rs.158.67 lakh claimed in the Statement of Summerised
Revenue Requirements.
6.6 Audit Fees
The amount of Rs.93.50 lakh towards audit fees claimed by WBSEDCL is
considered admissible. In this regard, it is to mention that WBSEDCL is a newly
formed Government Company and its accounts will be subject to audit by a firm
of Chartered Accountants as well as by the office of the Comptroller and Auditor
General of India in terms of the provision of the Companies Act. It may also have
Cost Audit like other companies in the power business, if so notified by the
Company Law Board. The provision of audit fees and expenses as projected by it
and admitted is likely to fall short of the requirements. It is, therefore, stipulated
that WBSEDCL may ask for the reimbursement of the shortfall in this regard at
the time of subsequent tariff revision.
6.7 Other Administration and General Charges
As we get from the submissions of WBSEDCL, the amount projected towards
other administration and general charges comes to Rs.6646.22 lakh with the
following function-wise break-up:
Rs. in lakh
Generation 330.91
Distribution 5015.92
Central overhead 1299.39
Total 6646.22
The projected amount is to meet the expenses under a number of heads of
expenses like traveling and communications, security, general establishment
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 77
insurance etc. The Commission has viewed the projection with reference to the
expenditures incurred by erstwhile WBSEB during 2006-07 for the generation
and distribution functions. It has been observed that for these two functions, total
general and administration charges comes to Rs.6374.94 lakh in the base year,
i.e., 2006-07. In the considered opinion of the commission, a 4% increase on the
amount allowed in 2006-07 should be adequate for this purpose in 2007-08. The
Commission thus admits an amount of Rs.6630.00 lakh for 2007-08.
6.8 Interest & Finance Charges
(a) Interest on Borrowed Capital
WBSEDCL, as a new entity, is to take over the business of distribution and
hydro-power generation of former WBSEB, 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 through CEA. WBSEDCL
becomes functional with effect from 1st April, 2007. The subsequent
transactions relating to repayments of borrowings, drawal of fresh borrowing
and payments of interest during 2006-07 were, therefore, carried out in the
books of former WBSEB. As it comes out from the submission of WBSEDCL,
the position of the outstanding balance of total capital borrowing as on the
date of its starting function i.e., on 1st April, 2007 is as under:
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 78
Rs. in lakh
Particulars FromGovt. of
W.B
Fromothers
Total
a) Outstanding balance as on31.03.2006
194800.00 107400.00 302200.00
b) Repayment during 2006-07 byWBSEB
- 13907.00 13907.00
c) Fresh borrowings during 2006-07by WBSEB
34602.00 19237.00 53839.00
Outstanding balance as on 1st April,2007 (a-b+c)
229402.00 112730.00 342132.00
With the above reconciled position of outstanding balance of borrowings at
the beginning of the year, WBSEDCL has submitted its projections of
repayment of borrowings, programmes for fresh borrowing as well as the
chargeable amount of interest which are as under:
Rs. in lakh
Particulars FromGovt. of
W.B
Fromothers
Total
a) Balance at the beginning of theyear
229402.00 112730.00 342132.00
b) Repayment during 2007-08 8154.00 15936.00 24090.00
c) Fresh borrowing 47004.00 31825.00 78829.00
Balance outstanding at the end of2007-08
268252.00 128619.00 396871.00
The amount of total chargeable interest on the above borrowings, taking the
projected repayment and fresh borrowings schedules in view, works out to
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 79
Rs.31571.00 lakh. Most of the outstanding balances of borrowing at the
beginning of the year as well as the projected fresh borrowings relate to the
capital construction works-in-progress. It has been estimated that 52.89% of
the chargeable interest will be capitalized and the balance 47.11% amounting
to Rs.14873.00 lakh will be in the revenue account. After detailed scrutiny of
the data submitted, we admit the amount as claimed by the applicant for
working out the Aggregate Revenue Requirement (ARR).
(b) 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 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 and the
same is admitted for ascertaining the Aggregate Revenue Requirement
(ARR) for the year 2007 – 2008.
(c) Interest on Security Deposits
The interest accrual on the amount of consumers’ security deposits has been
estimated to be Rs. 3618.35 lakh and the same is admitted.
(d) Other Finance Charges
The estimation of other finance charges as submitted by WBSEDCL in
prescribed format 1.17(c) is for a total amount of Rs. 2186.93 lakh. It has
been observed that an amount of Rs. 718.87 lakh has been considered in the
estimation towards fees and expenses for restructuring, but what type of
restructuring is contemplated has not been clarified. Restructuring of WBSEB
and the formation of the successor entities have already been over and no
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 80
expenditure in this regard is likely to be done during 2007 – 2008. In the
absence of any clarification, we are not admitting this projected expenditure.
The other finance charges we admit for a total amount of Rs. 1468.06 lakh
only.
(e) Interest for Working Capital
In terms of Regulation No. 4.6.5.1 of Tariff Regulations, 2007, the working
capital requirement of the licensee requires to be assessed on normative
basis @ 18% of the estimated annual sales revenue reduced by the amount
of depreciation, deferred revenue expenditure and returns. The entitlement of
WBSEDCL for interest on working capital, if computed in terms of referred
regulations, will be around Rs. 9000.00 lakh As observed by us in paragraph
6.8(a), the outstanding balance of borrowings from the Government of West
Bengal at the beginning of the financial year 2007 – 2008 was Rs. 229402.00
lakh. It has been stated by WBSEDCL that the detailed categorization of this
amount of outstanding balance of borrowing from the State Government
could not be analyzed and made available. In the absence of requisite
information in this regard, we feel that part of the total borrowing from the
State Government bearing 8.5% interest up to the end of 2006 – 2007 is
towards meeting working capital needs. Accordingly, we allow interest on
working capital for an amount of Rs. 7060.00 lakh as claimed. WBSEDCL is,
however, directed to come up with proper information in its next tariff revision
application categorizing the borrowing from different sources into capital
constructions and working capitals.
6.9 Depreciation
Depreciation on fixed assets as worked out by WBSEDCL with reference to Tariff
Regulations, 2007, comes for a total amount of Rs. 21761.00 lakh with the
following asset category wise break-up:
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 81
Rs. in lakh
Generation 5664.00
Distribution 16097.00
Total 21761.00
The computations are based on projected capitalization of additional fixed assets
of Rs. 255824.00 lakh and Rs. 141342.00 lakh for generation and distribution
respectively. The Commission presently admits the amount of depreciation as
claimed with the stipulations that any variation in the amount of chargeable
depreciation due to variations in the projected amount of the capitalization or the
date / dates of additional capitalization will be suitably adjusted at the time of
subsequent tariff revision.
6.10 Intangible Assets Written Off
The amount of Rs. 40.23 lakh as projected towards written off Intangible Assets,
being part of the amount spent for formation of the company, is admitted.
6.11 Provision for Bad Debts
In terms of the Tariff Regulations, 2007, the applicant may be allowed provision
for Bad Debts for the amount as actually had been written off in the latest
available audited accounts subject to a ceiling of 0.5% of the annual gross sale
value of energy in the current year, i.e., 2006 – 07. It has been seen that an
amount of Rs. 430.00 lakh was written of in the accounts for the year 2005 – 06
(copy of which was submitted along with the instant tariff revision application)
and the same being less than 0.5% of the estimated sales revenue, is admitted.
6.12 Income Tax
WBSEDCL has asked for Rs. 171.00 lakh towards fringe benefit tax under the
provision of Income Tax Act. As has been seen in Schedule – 17 to the Accounts
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 82
for the year 2005 – 06, an amount of Rs. 238.38 lakh was provided towards
liabilities in this regard. We admit the amount actually provided, i.e., Rs. 238.38
lakh in this account.
6.13 Fixed Charges for Singur – Haripal Rural Electric Co-operative Society Ltd.
6.13.1 Singur – Haripal Rural Electric Co-operative Society Ltd. (hereinafter referred to
as SHRELCOP) had been a distribution licensee operating in the Singur and
Haripal area in Hooghly District. The license of SHRELCOP was revoked with
effect from 31st December 2005 and as an interim measure, erstwhile WBSEB
was appointed as Administrator and was ordered to continue to act in that
capacity until further orders. That function has got vested to the WBSEDCL, the
successor entity taking over the distribution business of erstwhile WBSEB. In the
instant tariff revision application, WBSEDCL has considered the energy supply
requirement for the areas that had been under the operation of SHRELCOP and
has drawn its energy purchase programme accordingly. WBSEDCL has also
clubbed the consumer base of the said area with its own consumer base for the
recovery of tariff revenue. It is, therefore, necessary to allow the reasonable fixed
charges relating to SHRELCOP that WBSEDCL will be required to incur as the
Administrator.
6.13.2 WBSEDCL has submitted the following estimation of the fixed charges as will be
requiring to incur by it for SHRELCOP.
Rs. in Lakh
a. Employees cost 250.00
b. Repairs & Maintenance 136.66
c. Rent, Rates & Taxes 0.71
d. Legal Charges 1.66
e. Audit Fees 0.19
f. Other Administration & General 60.00
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 83
expenses
g. Depreciation 46.69
Total 495.69
WBSEDCL has also submitted that the total estimated expenditures under the
above heads during 2006 – 07 will be Rs. 455.56 lakh.
It has, however, been observed that WBSEDCL has missed to mention the
amount of income to be derived from other non-tariff sources. Such incomes are
to come from meter rentals, other service charges recoverable from the
consumers and interest on investments made by SHRELCOP in the form of fixed
deposits with the banks. It has also not asked for interest payable for the capital
loan obtained by SHRELCOP from REC. In its tariff order dated 8th May 2006 for
the year 2006 – 07, the Commission made an estimation of the amount of
interest payable on the borrowed capital and non-tariff income from other
sources for Rs. 21.76 lakh and 225.00 lakh respectively and considers to keep
those provisionally at that level for the year 2007 – 08 also.
6.13.3 Summarizing our findings above, the revenue requirement in regard to
SHRELCOP for the year 2007 – 08 are admitted as under:
Sl No Particulars Rs. in lakh
Estimated Expenditure for 2006 – 07 (as submitted)
i) Employees cost 203.67
ii) Repairs & Maintenance 130.15
iii) Rent, Rates & Taxes 0.68
iv) Legal Charges 1.58
v) Audit Fees 0.18
vi) Other Administration & General expenses 51.93
Total 388.19
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 84
Add: Average 5% increase for the year2007 – 08
19.41
Total 407.60
vii) Interest on loan capital 21.76
viii) Depreciation 46.69
Gross Revenue Required 476.05
Less: Income from other sources 225.00
Net Revenue Required 251.05
WBSEDCL is, however, to ensure that scheduled loan repayment obligations of
SHRELCOP are met out of the amount of depreciation allowed.
6.13.4 The Commission has carefully taken notes of the different points raised by some
of the objectors to the tariff proposals of WBSEDCL in regard to SHRELCOP.
The Commission is to make it clear that the reasonable amount of revenue
expenses that are needed to be incurred by WBSEDCL as an administrator are
only allowed to it in view of the fact that the income to be derived from sale of
energy to the consumers of SHRELCOP has been merged with such income of
WBSEDCL. No part of the liabilities of SHRELCOP prior to the date of appoint of
the administrator has been considered to be built in the tariff of WBSEDCL.
6.14 Reserve for Unforeseen Exigencies
The original cost of fixed assets at the beginning of the year 2007 – 08, as per
the submission of WBSEDCL, is Rs. 68416.00 lakh for generation and
391415.00 lakh for distribution services. The provision for the reserve for
unforeseen exigencies @ 0.25% works out to Rs. 171.04 lakh for generation and
Rs. 978.54 lakh for distribution totaling to Rs. 1149.58 lakh. The Commission
allows the same in terms of Tariff Regulations, 2007. The applicant was allowed
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 85
an amount of Rs. 1746.00 lakh towards such provision in the year 2006 – 07.
With the admission of Rs. 1149.58 lakh for the year 2007 – 08, the total provision
for such reserve for unforeseen exigencies comes to Rs. 2895.58 lakh and
amount is less than the ceiling of 5% of the gross value of assets. As some of the
objectors raised this issue, it is felt necessary to clarify that the amount of reserve
is not a part of the return allowable to the licensee. In terms of the Tariff
Regulations, 2007, the sums so appropriated need to be invested by the licensee
prudently in securities which can only be drawn with prior approval of the
Commission to take care of unforeseen exigencies. The income from the
investment of funds in this regards are considered for making adjustment with the
amount of ARR of the licensee
6.15 Special Allocation
WBSEDCL has asked for special allocation on the following accounts:
Rs. in Lakh
(a) Part of the amount of short recovery of 2273.00Dues from SHRELCOP
(b) Release of the part of interest on borrowings 3185.00Disallowed in 2004 - 05
(c) Release of the part of ARR withheld 4973.20In 2004 – 05
Total 10431.20
The Commission feels it prudent to clarify the position separately for each of the
above items for which special allocations has been asked for in the year 2007 –
08.
(a) Short Recovery of Dues from SHRELCOP
An amount of Rs. 3014.00 lakh in total was the short recovery of revenue by
erstwhile WBSEB from Singur Haripal Rural Electric Co-operative Society
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 86
Limited (SHRELCOP) for the years 2003-04, 2004-05 and 2005-06 by virtue
of Commission’s orders in this regard. The license of SHRELCOP, as a
distributor, had been revoked and WBSEDCL, as the successor entity of
WBSEB, is presently functioning as Administrator of the affairs of
SHRELCOP. It has asked for a part of such short recovery of revenue to be
considered to be compensated through tariff for the year 2007 – 08. In this
regard, the Commission observes that the payment due to WBSEDCL, as a
successor entity of erstwhile WBSEB, is a liability on the part of SHRELCOP
and is to be accounted for as such by it in its books of accounts. The ability of
SHRELCOP to discharge this liability has not been finally assessed. The
Commission, therefore, does not consider allowing any part of the stated
liability of SHRELCOP to be built in the tariff of WBSEDCL. The Commission
has also taken note of the objections made by some of the objectors to the
tariff proposal of WBSEDCL on this issue.
(b) Release of the part of interest on borrowing disallowed in 2004 – 05
The Commission, while passing the tariff order for the year 2004 – 05,
deducted an amount of Rs. 63996.00 lakh from the revenue requirements of
erstwhile WBSEB towards excess interest allowed in the earlier years.
Paragraph 15.3.6 of the Commission’s combined tariff order dated 9th June
2004 for the year 2002 – 03, 2003 - 04 and 2004 – 05 may be referred to.
WBSEDCL has asked for release of a part of the stated disallowed amount of
interest. After examining the projected claims with due care, the Commission
is of the considered opinion that the alleged short allowance of interest due to
subsequent revision in the orders of the State Government, should not be
released without further study of the financial implications of such revision in
the rate of interest in capital accounts as well as in the revenue accounts.
The particular loans from the State Government were meant for carrying out
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 87
capital construction works. The interest paid / payable on such loans requires
to be capitalized till the time the concerned capital works are completed and
capitalized. The interest on such loans is chargeable to revenue accounts
only for the period after capitalization of the completed construction works.
The particulars those are required for making a decision in this regard have
not been submitted by WBSEDCL and the Commission does not admit for
the present, any claims on account of alleged shortfall in the interest allowed
in the earlier year. WBSEDCL is, however, advised to make a separate
submission to the Commission with all necessary particulars providing the
copies of relevant Government orders in this regard. It is also to be stated
what portion of the interest paid / payable on the concerned loans from the
State Government had been capitalized and what portion is chargeable to
revenue account so as to enable the Commission to take appropriate
decision in this regard at the time of next tariff revision.
(c) Release of the part of ARR withheld in the Tariff Order dated 9th June 2004 of
the Commission:
An amount of Rs. 37298.00 lakh was withheld from the total amount of
revenue requirement admitted by the Commission in the composite tariff
order for erstwhile WBSEB dated 9th June 2004 for the years 2002 – 03, 2003
– 04 and 2004 – 05 pending the submission of certain clarification and
information that were lacking in the tariff applications for the concerned years.
Being satisfied with subsequent submission, the Commission admitted to
release 1/3rd (one-third) of the referred withheld amount in the year 2006 –
07. Paragraph 15.3.14 of the tariff order dated 9th June 2004 and paragraph
7.12.5 of the tariff order dated 8th May 2006 may be referred to in this regard.
The balance amount left to be released was Rs. 24865.00. The Commission
decides to release a further amount of Rs.100.00 crore in this year. The
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 88
balance of the withheld amount will be considered suitably for adjustment at
the time of subsequent tariff revision. The Commission has carefully taken
note of the observations made by some objectors in regard to release of this
withheld part of the ARR admitted by the Commission in the year 2004 – 05.
The entitlement of WBSEDCL as a successor of the erstwhile WBSEB to get
back the withheld amount is beyond doubt. The Commission feels that early
release of the referred amount without causing much tariff shock to the
consumers is considered justified to the distribution licensee and beneficial
for its consumers. The release of the amount will enable the licensee to avoid
costly borrowings to that extent for incurrence of capital construction and
operation cost and hence, ultimately benefits are to flow, to the consumers.
6.16 Returns
6.16.1 The entitlement of WBSEDCL for return on its equity base has been examined
with reference to the balance sheet as on 31st March, 2006, as shown in the
Schedule – B to the “West Bengal Power Sector Reforms Transfer Scheme,
2007, notified by the Government of West Bengal on 25 th January, 2007” and the
projected / estimated data provided by the applicant in the prescribed from no.
1.18 of the instant application. The equity capital of WBSEDCL as on 31st March
2006, was shown for an amount of Rs. 1942.00 crore in the referred Schedule –
B. This amount of equity was in consideration of the transfer value of the net
fixed assets of Rs. 2170.00 crores and the capital works-in-progress worth Rs.
2738.00 crores as on the same date. As data provided in regard to the value of
the original cost of fixed assets in form 1.18, the additions in the original cost of
fixed assets pertaining to Distribution & Hydel Undertakings have been
estimated/projected for Rs. 134.00 crores and Rs. 3971.66 crores during the
years 2006 – 07 and 2007 – 08 respectively totaling to Rs. 4106.26 crores. This
amount of the estimated additions in the original cost of fixed assets after 31st
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 89
March 2006 needs to be reduced by the opening amount of the value of capital
works-in-progress of Rs. 2738.00 crores considered in the transfer deeds as the
equity support against that amount had already been included in the amount of
opening equity of Rs. 1942.00 crores. The amount of returns allowable to
WBSEDCL for the year 2007 – 08, thus, works out as under:
Sl.No.
Particulars Amount inRs.- Lakh
Amount inRs.- Lakh
(i) Equity as on 31.03.2006 (As perSchedule – B to the referrednotification of the Govt. of WestBengal)
194200.00
(ii) Subsequent additions to theoriginal cost of fixed assets in:2006 – 07 (Estimated)2007 – 08 (projected)
Less: Adjustment of the amountof capital works-in-progress ason 31.03.2006 as per Schedule –B to the referred notification
13460.00397166.00410626.00
273800.00 136826.00
(iii) Normative Equity addition [30%of (ii)]
41048.00
(iv) Equity at the end of 2007 – 08 [(i)+ (iii)]
235248.00
(v) Average equity for the year 2007– 08 [(i) + (iv) / 2]
214724.00
(vi) Return on average equity @ 14%[on (v)]
30061.00
6.16.2 WBSEDCL is a newly incorporated entity to succeed the distribution of energy
and hydro-generation business of erstwhile WBSEB. It is yet to come up with its
independent audited accounts. The amount of returns as has been worked out
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 90
on the basis of estimations and projections may be required to be adjusted
suitably as and when the first audited accounts of WBSEDCL will be made
available to the Commission. Such adjustment, if so required, will be considered
at the time of subsequent revision of tariff.
6.16.3 The Commission has carefully noted the observations made by some of the
objectors in regard to the allowable returns on equity. Some of the objectors have
questioned the justifications of increase in the amount of equity over the amount
considered in Commission’s tariff order for the year 2006 – 07. Some has worked
out cash return to the applicant @ 22.3% adding the amount of depreciation to
the return on equity and considered that rate abnormally high. The Commission
wants to highlight that for considering the equity of the applicant, it has gone by
the restructuring scheme notified by the Govt. of West Bengal and referred in
earlier paragraph.
It has been observed by the Commission that the amount of capital employed in
business transferred to WBSEDCL was Rs. 6495.00 crore on 31st March 2006 as
against that the amount of equity was considered Rs. 1942.00 crore, coming to
around 30% only which is at par with the other organizations in the power sector
and is not to be considered high. Otherwise also, the increase in the equity base
of a licensee goes ultimately in favour of the consumers by reduction in the cost
of borrowed capital and at the same time enable the licensee to have a
favourable rate in case of market borrowings. The observations made by some
objectors on the high rate of cash return are also considered not proper.
Depreciation means the expiration of the cost of fixed assets used during a
period and adding up the amount of depreciation to the licensee’s returns (to
work out the cash return) is not proper. Moreover, the average rate of
depreciation in the case of WBSEDCL comes around 3% only and not 8.33% as
considered by the objectors.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 91
6.17 Income from Non-Tariff Sources
The income from non-tariff sources, comprising of rental of meters and other
apparatus, delayed payment surcharges, interest and investment income, etc.
has been estimated Rs. 16805.24 lakh. The projected amount is considered to
be logical and the Commission admits the same.
6.18 Amount Recoverable from Bulk Supply
As referred in the statement of Energy Balance in the earlier chapter, the total
quantum of bulk supply to other licensees in the State is 1598.19 MU. The rate at
which such supply is to be charged works out to 255.00 paise per kWh and
therefore, the revenue recoverable from such bulk supply has been worked out to
Rs. 40753.85 lakh. In addition to that WBSEDCL is also to supply 43.69 MU to
Sikkim @ 169 paise / kWh. The recoverable amount from Sikkim works out to
738.36 lakh. The total amount recoverable from bulk supply will come to Rs.
41492.21.
6.19 Share of Gains out of the Sale of Energy to Persons other than theLicensee and own Consumers
Under the system of prospective tariff determination, the gains to be derived by
the licensee from sale of energy to persons other than licensees and own
consumers can not be precisely determined. The quantum of such sale as well
as the price available for such sale will depend on the fluctuating demand and
supply conditions in the market. The Commission, therefore stipulates that the
amount towards share of gains by way to such sale as have been considered in
this order will be subject to adjustment at the time of subsequent tariff revision
when all the relevant actual audited data will be made available to the
Commission.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 92
The estimated quantum of sale of energy to persons other than the consumers
and other licensees as per the statement of Energy Balance considered by the
Commission in earlier chapter comes to 5229.72 MU. A part of the amount of
benefits to be derived from such sale is required to be passed on to the
consumers in terms of the Commission’s Tariff Regulations, 2007. The
Commission considers to pass on 90% of such benefits to the consumers and
10% to be retained by WBSEDCL. The amount works out as under:
Rs. in Lakh
(i) Revenue from such sale (@ of 348 paise / kWh) 181994.26
(ii) The cost of energy to the applicant 102628.03at average rate of purchase i.e., 196.24 p/kWh
(iii) Surplus [(i) – (ii)] 79366.23
(iv) Consumers’ share [90% of (iii)] 71429.61
6.20 Adjustment of Amounts received towards Unscheduled Interchange (UI)
It has been observed by the Commission from the submission of WBSEDCL that
erstwhile WBSEB earned the undernoted amounts from Unscheduled
Interchange (UI) during financial years 2003 – 04, 2004 – 05 and 2005 – 06.
Rs. in Lakh
2003 – 2004 9774.23
2004 – 2005 14980.34
2005 – 2006 18847.41
Total 43601.98
The schedule no. 5 of the audited accounts of erstwhile WBSEB may be referred
to in this regard. Against this amount of total earning through UI, the Commission
made the following adjustments in earlier years as detailed below:
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission 93
i) Adjustment in the ARR for the year 9712.002005-06 (vide paragraph 7.1 of orderdated 31.03.2005
ii) Adjustment against power purchaseCost for the year 2006 – 07(vide the Schedule of purchase underparagraph 5.3 of order dated 8.5.06) 14700.00
Total 24412.00
The balance amount of Rs. 19189.98 lakh i.e. (43601.98 – 24412.00) is being
considered for adjustment for ascertaining the ARR for the year 2007 – 08.
6.21 Transmission charges payable to WBSETCL.
WBSEDCL has asked for a provision for an amount of Rs.41825.11 lakh towards
transmission charges payable to the State Transmission Utility, i.e., West Bengal
State Electricity transmission Company Ltd (WBSETCL). Based on the tariff
applications submitted by WBSETCL for the concerned year, the Commission
has finalized the amount of the Aggregate Revenue Requirement (comprising of
all its fixed charges) of WBSETCL and the same has come to Rs.42342.70 lakh.
The particulars will be available in the Commission’s order dated 26.07.2007 in
Case No: TP-34/07-08 in regard to WBSETCL for the year 2007-2008. The
Commission accordingly allows a sum of Rs.42342.70 lakh payable by
WBSEDCL to WBSETCL as transmission charges including handling and system
operation charges in 2007-08.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER - 7REVENUE REQUIREMENT &
AVERAGE COST OF SUPPLY
West Bengal Electricity Regulatory Commission 94
7.1 The analysis and admission of variable cost and Fixed Charges in the foregoing
paragraphs now leads to drawing of the Statement of Revenue Requirements of
WBSEDCL for the year 2007 – 2008 and also to working out the average cost of
supply to its consumers:
Sl.No.
Particulars As perPetition
Rs. in Lakh
As foundAdmissibleRs. in Lakh
A. VARIABLE COST:1 Fuel cost (For Diesel Generating Station) 87.00 87.002 Power Purchase 420103.88 465184.33
Total Variable Cost (A): 420190.88 465271.33B. FIXED COST:
3Transmission charges payable to WBSETCL(including handling & system operation charges etc.) 41825.11 42342.70
4 Employee Cost 36954.32 36954.32
5 Repairs & Maintenance charges including cost ofconsumables
9448.19 9440.22
6 Administration & General Expensesa) Rent, Rates and Taxes 615.45 80.52b) Legal Charges 158.67 90.32c) Auditors Fees 93.50 93.50
d) Other Administrative and General Charges 6646.22 6630.00
7 Interest on borrowed capital 14872.72 14873.008 Interest on Bonds for Employees Terminal Benefits 13005.00 13005.009 Interest on Consumer's Security Deposit 3618.35 3618.35
10 Other Finance Charges 2186.93 1468.06
11 Interest on working capital7060.00 7060.00
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 95
Sl.No. Particulars
As perPetition
Rs. in Lakh
As foundAdmissibleRs. in Lakh
12 Depreciation 21761.00 21761.0013 Write off of Intangible Assets 40.23 40.2314 Provision for Bad Debt 430.00 430.0015 Expenditures relating to SHRELCOP 495.69 251.0516. Taxes 171.04 238.38
Total Fixed Cost (B): 159382.42 158376.65
C RETURNS & APPROPRIATIONS:17 Returns 39148.00 30061.0018 Reserve for Unforeseen Exigencies 1149.58 1149.5819 Appropriation relating to earlier years 10431.20 10000.00
Total Returns and Appropriations (C): 50728.78 41210.5820 Gross Revenue Requirement (A+B+C) 630302.06 664858.56D. ADJUSTMENTS
21 Other Income (Non-Tariff) 16805.24 16805.24
22 Expenses attributable to sales to persons other thanconsumers and licensees & Sikkim 92090.16 102628.03
23 Revenue from sale to licensees and Sikkim 27137.00 41492.2124 Benefits to be passed on to consumers 76067.86 71429.6125 Adjustments of UI charges earned in earlier years. 0.00 19189.98
TOTAL: ADJUSTMENTS: 212100.26 251545.07
26 Aggregate Revenue Requirement from sale ofenergy to own consumers (20 – D) 418201.82 413313.49
27 Sales to consumers (MU) 12896.00 12896.0028 Average cost of supply (paise / kWh) 324.29 320.49
Notes: Figures in the projections of WBSEDCL have been regrouped/ rearranged tomaintain comparability.
Tariff Order of WBSEDCL for the year 2007 – 2008
CHAPTER - 8TARIFF ORDER
West Bengal Electricity Regulatory Commission 96
8.1 The tariff schedule as applicable to the consumers of WBSEDCL in the year
2007-08 is given at Annexure A1 for LV and MV consumers under quarterly billing
cycle, at Annexure A2 for LV and MV consumers under monthly billing cycle and
at Annexure A3 for HV and EHV consumers. The Commission has reviewed the
directives given to WBSEB in the tariff order for 2006-07 and compliance thereof
by WBSEDCL and also decided to give certain directives to WBSEDCL on
various matters. These are to be found at Annexure B.
8.2 The associated conditions of the tariff shall be as follow: -
8.2.1 (a) 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 HV
industrial consumers shall receive a voltage wise graded load factor
rebate as per following table:
LOAD FACTOR REBATE
Supply VoltageRange of Load Factor(LF) 6.6/11 kV 33 kV 66 /132/ 220/ 400 kV
Above 55% Up to 60% 3 paise / kWh 4 paise / kWh 5 paise / kWhAbove 60% Up to 70% 8 paise / kWh 9 paise / kWh 10 paise / kWhAbove 70% Up to 75% 15 paise / kWh 20 paise / kWh 22 paise / kWhAbove 75% Up to 80% 20 paise / kWh 25 paise / kWh 30 paise / kWhAbove 80% Up to 90% 25 paise / kWh 35 paise / kWh 40 paise / kWhAbove 90% Up to 92% 30 paise / kWh 40 paise / kWh 45 paise / kWhAbove 92% 35 paise / kWh 45 paise / kWh 50 paise / kWh
The above load factor rebate shall be applicable on 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 @ 35 paise / kWh on the
total quantum of energy consumed in the billing period).
(b) Load factor surcharge shall be levied on HV industrial and HV commercial
consumers if the load factor falls below 30%. The surcharge amount for
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 97
the load factor less than 30% but equal to or above 25% shall be 5 paise /
kWh for the amount of energy by which consumption falls short of energy
corresponding to a load factor of 30%. The surcharge amount for the load
factor below 25% shall be 30 paise / kWh and shall be applicable only for
the amount of energy by which the consumption falls short of energy
corresponding to a load factor of 25% but not less than the amount of
surcharge that would have been payable for load factor at 25% computed
@ 5 paise / kWh. (For example, a HV industrial or commercial consumer
at 28% load factor shall be liable for paying a surcharge @ 5 paise / kWh
on the quantum of energy to be consumed at 30% load factor minus total
energy consumed in the billing period. Similarly, a HV industrial or
commercial consumer at 24% load factor shall be liable for paying a
surcharge @ 30 paise / kWh on the quantum of energy to be consumed
at 25% load factor minus total energy consumed in the billing period but
not less than the amount of surcharge that would have been payable for
load factor at 25% computed @ 5 paise / kWh).
8.2.2 (a) Fixed Charge for LV and MV consumers and Demand charge for HV and
EHV consumers shall be such as shown at Annexure-A1, Annexure-A2
and Annexure-A3 respectively.. Demand charge shall be levied on the
basis of maximum demand recorded during the month or 75% of the
contract demand whichever is higher subject to a minimum of 50 KVA. In
case KW demand is recorded in place of KVA demand then the demand
charge rate in KVA is to be determined by considering a power factor of
0.85.
(b) In case the highest demand of any non-TOD HT consumer exceeds the
contract demand in any month, the demand charge as mentioned in the
tariff schedule shall apply on recorded highest demand for that month. In
addition to this, additional demand charge in the case of such consumer
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 98
shall be 60% of demand charge on the quantum of demand by which the
recorded highest demand exceeds the contract demand. Excess energy
drawal corresponding to such excess demand shall be billed at applicable
energy charge for such consumer.
(c) In case the highest demand of any HT consumer under TOD tariff
exceeds the contract demand in any month, the demand charge as
mentioned in the tariff schedule shall apply on highest demand for that
month. In addition, the demand of power in excess of sanctioned contract
demand in any period of time shall attract the additional demand charge
for the said excess demand for such consumer, and the same shall be
calculated according to the following formulae:
i) In case the highest demand during normal period exceeds thecontract demand
ADCED = 0.2 X (Dact – Dcont) x DC
ii) In case the highest demand during peak exceeds the contractdemand
ADCED = 0.5 X (Dact – Dcont) x DC
iii) In case the highest demand during off-peak period exceeds thecontract demand
When Dact > Dcont and Dact ≤1.3 x Dcont
ADCED = 0.01 X (Dact – Dcont) x DC
When Dact > 1.3 x Dcont and Dact ≤1.5 x Dcont
ADCED = [0.01 X 0.3 x Dcont + 0.1 x (Dact – 1.3 x Dcont)] x DC
When Dact > 1.5 x Dcont
ADCED = [0.01X0.3xDcont + 0.1x0.2xDcont + 0.2 x (Dact–1.5xDcont)] x DC
iv) In the formulae (i), (ii) and (iii) mentioned above, the abbreviationshave the meanings as given below:
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 99
ADCED = Additional Demand Charge for demand of power in
excess of sanctioned contract demand during
billing period.
Dact = Actual highest demand of power in respective time
period.
Dcont = Sanctioned Contract Demand of the consumer.
DC = Rate of Demand Charge as per this tariff order for
the relevant category of consumer.
v) In case demand of power exceeds sanctioned contract demand in
more than one time period, computation of Additional Demand
Charge (ADCED) shall be done for each such time period and the
highest among such computed additional demand charge for different
periods shall be chargeable.
vi) Excess energy drawal corresponding to any excess demand shall be
billed at the applicable energy charge for such consumer.
(d) The demand charge shall not be payable by any consumer for that period
when load of the consumer is totally shed / interrupted because of any
fault of WBSEDCL or its system. Such exemption from demand charge
shall not be available if the interruption is caused by grid failure or
automatic under-frequency relay tripping or any force majeure issues not
related to WBSEDCL or due to disconnection of supply for any fault on
the part of the consumer. This is, however, without any prejudice to any
other compensation if the consumer is entitled to such compensation
because of applicability of any other law for the time being in force or the
Electricity Act 2003 or the Regulations made thereunder.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 100
(e) For LV and MV consumers, the fixed charge in terms of per KVA/month
shall be based on contract demand or sanctioned load. In case where no
consumption of energy has taken place for any reasons including
disconnection of supply the fixed charge shall be calculated on the basis
of the contract demand or sanctioned load. For billing for any fraction of a
month caused due to discontinuance of consumership, the computation of
fixed charge shall be made for the entire month. In case where KVA is not
available, it can be converted from kW considering 0.85 as power factor.
8.2.2.1 Minimum charges excluding meter rent, taxes, levies etc. and arrears shall
be as follows:
Category of Consumers Minimum charge
(i) LV & MV Domestic (Rural) Rs. 28/- per month
(ii) LV & MV Domestic (Urban) Rs. 28/- per month
(iii) Domestic HV Rs. 400/- per month per KW ofsanctioned load
The minimum charge shall be applicable when the sum of the energy charge
and demand charge or fixed charge, if any, including rebate and surcharge, if
any, is less than the minimum charge.
8.2.2.2 The rate of energy charge applicable for temporary supply related to events,
festivals, marriage ceremony shall be at the highest rate of supply under non-
TOD tariff scheme applicable to that particular category of consumers to
which the applicant seeking such supply belongs. For such temporary supply,
the fixed / demand charge shall be the fixed / demand charge under non-
TOD tariff applicable to that particular category of consumers to which the
applicant seeking such supply belongs. Such temporary supply shall not
have any load factor rebate and power factor rebate and shall not be entitled
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 101
to TOD tariff. However, other charges for such temporary supply shall be the
same as are applicable to that particular category of consumers to which the
applicant seeking such temporary supply belongs. If there is no appropriate
rate given in the tariff schedule for such temporary supply, the rate for such
temporary supply shall be @ Rs.5.00 / kWh. For such temporary supply, the
applicant shall apply to the licensee at least 10 days in advance.
8.2.2.3 Rebate for Cold Storage plant meant exclusively for storing fish, sea food,
potato and perishable vegetable covered under rate S (f-pi) and rate S(ft-pi)
shall be 7% of the energy charge provided the payment is made within due
date.
8.2.2.4 For street lighting and public water works, a rebate of 15 paise /Kwh on
energy charge will be given if payment is made within due date in case of
normal or normal-TOD meter only. It will not apply to such supply having pre-
paid meter.
8.2.2.5 Rebate for timely payment to all consumers excluding those covered by
paragraphs 8.2.2.3 and 8.2.2.4 above or pre-paid meter shall be 2% of the
amount of the bills excluding meter rent, taxes, duties, levies and arrears.
8.2.2.6 For industrial supply, rebates for 33 KV and 66 KV supply shall be at 3% of
the energy charge and the rebate for 132 KV supply shall be at 7% of the
energy charge. For 220 KV and 400 KV supply in industry, rebate shall be
9% of the energy charge. This rebate will be given before giving effect to
rebate mentioned in paragraph 8.2.2.5.
8.2.2.7 Additional rebate of 5 paise per kWh on energy charge will be allowed to an
EHV industrial consumer whose contract demand is 25 MVA or above and
whose load factor is not less than 75% in the billing period and whose
recorded maximum demand during billing period is not less than 80% of the
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 102
contract demand subject to the condition that the payment is made within the
due date. This rebate is in addition to the rebates under paragraphs 8.2.1,
8.2.2.5 and 8.2.2.6. This rebate will be given before giving effect to rebate
mentioned in paragraphs 8.2.2.5 and. 8.2.2.6.
8.2.2.8 Additional rebate of 5 paise per unit on energy charge will be given to
domestic and commercial consumers under LV and MV categories covered
by quarterly billing system under normal or normal-TOD tariff scheme if
payment is made for the quarter at a time within due date stipulated for first
month of the quarter. This rebate will be in addition to rebate under
paragraph 8.2.2.5 for normal meter or normal TOD meter and will be given
after giving the effect of rebate under paragraph 8.2.2.5.
8.2.2.9 Un-metered agricultural / irrigation consumers may make monthly payment
for which they shall be entitled to 2% rebate for timely payment within due
date in line with the consumers of other categories as mentioned in
paragraph 8.2.2.5. In case, however, such agricultural/ irrigation consumers
opt for advance payment of the full annual amount, the consumers shall be
allowed a rebate of 5% in addition to 2% rebate mentioned in paragraph
8.2.2.5 and this additional rebate of 5% will be given effect after giving effect
to rebate under paragraph 8.2.2.5.
8.2.2.10 The power factor rebate and surcharge shall continue at the same rates for
those categories of consumers to whom these are applicable at present. The
methods of calculation of such rebate and surcharge shall also continue to be
the same as given in the tariff order of WBSEB for 2006-07. The rebate and
surcharge against different time periods shall be reflected in the bill
separately and shall be treated separately.
8.2.2.11 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.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 103
8.2.2.12 For pre-paid tariff scheme with pre-paid meter a discount of 2.75% on
energy charge will be allowed except for public water works, commercial and
domestic consumers under LV under MV categories. For public water-works,
a special discount of 16 paisa/Kwh on energy charge will be given in case the
supply is under pre-paid tariff scheme through prepaid meter. For commercial
and domestic consumers under LV and MV categories having pre-paid tariff
scheme through prepaid meter, a special discount of 4.75% on energy
charge will be given.
8.2.2.13 Delayed payment surcharge on due amount shall be 1.25% per month of the
delay in payment or pro-rated for part thereof up to 3 months of delay, at
1.5% per month of delay or pro-rated for part thereof for any period beyond 3
months of delay but up to the next 3 months and at 2% per month of delay or
pro-rated for part thereof beyond first 6 months of delay. Delay in payment
shall be counted from the due date for payment. This delayed payment
surcharge is without prejudice to the provisions under the Electricity Act 2003
and the Regulations made thereunder.
8.2.2.14 Dairy with chilling plant will be under the category of consumers of cold
storage for non perishable items.
8.2.2.15 For irrigation tariff under Rate-C(b), North Bengal stands for the districts of
Coochbehar, Jalpaiguri, Darjeeling, North Dinajpur, South Dinajpur and
Malda.
8.2.3 All existing charges relating to meter rent, meter testing, meter replacement,
etc., shall continue except for the following for which the charges are given
below:
i) Meter rent for LT Pre-paid Meter for Domestic and Commercialcategories.
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 104
Single Phase Rs. 15 per month per meter
Three Phase Rs. 30 per month per meter
ii) The consumer opting for pre-paid meter shall not be required to
furnish any security deposit for the energy charge.
iii) No meter rent and security deposit for meter shall be applicable if
the meter is supplied by the consumer.
8.2.4 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.
8.2.5 This tariff shall be applicable from the billing month of / pertaining to April, 2007
and onwards. Adjustments, if any, shall be made in the bills for the months of
October and November 2007. If any technological intervention is required by
WBSEDCL due to change in peak and off-peak period time under TOD
scheme, then that shall be done within September, 2007.
8.2.6 In addition to the tariff determined under this tariff order, WBSEDCL would be
further entitled to additional sums towards enhanced cost of fuel and power
purchase, if any, after the date from which this tariff order takes effect. The fuel
and power purchase cost shall be subject to adjustment according to West
Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2007 and as per Fuel and Power Purchase Cost Adjustment
(FPPCA) formula as given in Schedule 7 of the said regulations.
8.2.7 a) Introduction of an optional TOD tariff scheme for LT Commercial, LT
Industrial and LT Public Water Works categories of consumers which was
directed in the tariff order for 2006-07 shall be extended additionally to
cover such consumers also having a minimum load of 30 KVA .
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 105
b) For LT industrial and LT commercial consumers, opting for TOD tariff, the
total energy charge shall be determined as per the tariff rate given in this
order.
c) For any pre-paid and TOD tariff scheme other charges shall be the
charges applicable to consumers under respective category of non-TOD
tariff.
8.2.8 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 Commissions. The same will be
subject to the following conditions:-
a) provision of requisite meter security deposit, to be kept with the 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.
8.2.9 All billing parameters of a bill shall be construed for a billing period only, which
has been specified by the Commission, irrespective of the date on which the
meter reading is taken in accordance with any regulation made by the
Commission.
8.2.10 Any optional tariff scheme for pre-paid meters will be subject to availability of
vending centres for the present. However, for a consumer for whom pre-paid
meter is mandatory but vending machine is not available, pre-denominated
pre-paid facility shall be extended. This pre-denominated pre-paid facility for
optional tariff scheme for pre-paid meters may be also extended to those
areas where vending machines are not available.
8.2.11 An existing consumer may switchover to a new category of consumers with
effect from any date after 30.9.2007.For that purpose such existing consumer
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 106
shall apply to the licensee for such conversion at least sixty days in advance
with necessary documents.
8.2.12 Consumers who have only the pre-paid tariff scheme as applicable tariff
scheme shall be allowed to have an alternative normal tariff scheme at the
same rates as applicable for the prepaid tariff scheme in case of non-
availability of pre-paid meters till such time such pre-paid meters are available.
8.2.13 The tariffs determined under this order for different categories of consumers
are the maximum ceilings for supply of electricity at any agreed price to the
consumers for those areas of supply of WBSEDCL only where multiple
licensees exist. However, if supply is effected to a consumer at a price lesser
than the upper ceiling, and as a result the licensee incurs loss , such loss shall
not be allowed to be passed on to any other consumers or any other
distribution licensees of the Commission.
8.2.14 The purchase price of electricity by WBSEDCL from different agencies shall
be as per Annexure A4.
8.2.15 A new category of consumers named as Lifeline(Domestic) has been
introduced subject to the condition that such category of consumers shall have
metered supply and sanctioned domestic load of 0.3 KW. In case the
sanctioned load in KW is not available, it can be converted from KVA
considering 0.85 as power factor. If the quarterly consumption of any such
consumer exceeds 75 Kwh, then he will fall in the category of domestic (rural)
consumers or domestic (urban) consumers as the case may be for that billing
period.
8.2.16 PLF for any plant may be adjusted downward against enhanced performance
of any other plant of WBSEDCL that registers generation above the target
PLF for the purpose of recovery of fixed cost. The plant whose enhanced
Tariff Order of WBSEDCL for the year 2007 - 2008
West Bengal Electricity Regulatory Commission 107
performance will meet the shortfall in PLF of any other plant of WBSEDCL,
shall be paid energy charge at the rate applicable to it as per this tariff order.
8.3 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 and in cash, 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
terms of the West Bengal Electricity Regulatory Commission (Terms and
Conditions of Tariff) Regulations, 2007, the State Government is required to
communicate within 15 days from the date of receipt of a tariff order, whether it
shall give any subsidy to any group of consumers etc.
8.4 WBSEDCL shall present to the Commission a gist of this order along with the
names of at least four leading dailies (at least one of which shall be in English, one
in Hindi and the rest in Bengali) 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 those newspapers within four days from the date of
receipt of the approval of the Commission.
Tariff Order of WBSEDCL for 2007-08
Annexure A1
EnergyCharge
EnergyCharge
P/kWh P/kWh
1. Life Line(Domestic )
RateA(Dm-LL) 206 Nil
First 75 209 75 209Next 105 232 105 232Next 120 284 120 284Next 600 327 600 327
Above 900 572 900 572First 75 214 75 214Next 75 242 75 242Next 150 289 150 289Next 150 334 150 334Next 450 354 450 354
Above 900 572 900 572First 180 282Next 120 399Next 150 425Next 450 465
Above 900 550 Allunits 363 All units 363
First 180 287Next 120 404Next 150 425Next 450 465
Above 900 550 Allunits 363 All units 363
RateA(Dm-R)
NormalRate
A(Cm-R)
NormalRate
A(Cm-U)
Type of Consumer Consumercategory
LOW AND MEDIUM VOLTAGE CONSUMERS
Nil NOT APPLICABLE
Optional tariff SchemeOptional Tariff Scheme - IIOptional Tariff Scheme – I
Quarterly consumption inKWH
NilRate
A(Dm-R)pp
Name of theTariff Scheme
Applicable Tariff Scheme
Prepaid
Quarterly consumption inKWH
Fixed Charge Consumer categoryName of the TariffScheme
Normal 0 to 75
2.
5.
NOT APPLICABLE
Normal -TOD
RateA(Cm-R)t
PrepaidNil
Normal -TOD
Above
Domestic (Rural)
Domestic (Urban)3.
Commercial (Rural)4.
NextNext
Above
23.00 hrs to 06.00hrs.
06.00 hrs to 17.00hrs
Rs 5/- perconsumer/
month
Allunits
17.00 hrs to 23.00hrs.
Allunits
RateA(Cm-U)t
Sl No
Commercial (Urban)
Normal
RateA(Dm-U)
NormalRate
A(Dm-U)pp
Rs 5/- perconsumer/
month
23.00 hrs to 06.00 hrs.
Rs 5/- perconsumer /
month
NOT APPLICABLE
All units
Rs 5/- perconsumer /
month
17.00 hrs to 23.00 hrs. All units
23.00 hrs to 06.00 hrs.
17.00 hrs to 23.00 hrs.
NOT APPLICABLE
429
06.00 hrs to 17.00 hrs All units 390
All units
06.00 hrs to 17.00 hrs 390
429
Energy Charge
P/kWh
Name of theTariff Scheme
Quarterly consumptionin KWH
Consumer category
Nil
RateA(Cm-R)tpp
23.00 hrs to 06.00hrs.
Fixed ChargeFixed Charge
06.00 hrs to 17.00hrs
17.00 hrs to 23.00hrs.
AllunitsAll
units
FirstNextNextNext
390
Prepaid- TODRs 5/- per
consumer/month
RateA(Cm-U)tpp
Rs 5/- perconsumer/
month
390
429
Prepaid - TOD429
FirstNextNext
West Bengal Electricity Regulatory Commission 108
Tariff Order of WBSEDCL for 2007-08
Annexure A1
EnergyCharge
EnergyCharge
P/kWh P/kWh
Type of Consumer Consumercategory
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - IIOptional Tariff Scheme – I
Quarterly consumption inKWH
Name of theTariff Scheme
Applicable Tariff Scheme
Quarterly consumption inKWH
Fixed Charge Consumer categoryName of the TariffScheme
Sl No Energy Charge
P/kWh
Name of theTariff Scheme
Quarterly consumptionin KWH
Consumer category Fixed ChargeFixed Charge
On allunits 283
On allunits
311
In Municipal AreaOn allunits 263
On allunits 273
On allunits
300
In Non Municipal AreaOn allunits 254
First 900 360
Rs 5/- perconsumer
/month
RateA(Cm-III) ppt
Prepaid - TOD
23.00 hrs to 06.00hrs.
06.00 hrs to 17.00hrs
RateA(Cm-II) ppt
Nil
NOT APPLICABLEPrepaid - TOD
PrepaidRate
A(Cm-PU)(Non-Mun) pp
RateA(Cm-PU)
(Non-Mun) pptPrepaid - TODNil Nil
Public utility/ SpecifiedInstitution Public Bodies
RateA(Cm-PU)
(Mun)On all Units
Rs 5/- perconsumer
/month
285 Nil
300
Next 300
On all Units
Normal
RateA(Cm-PU)(Non-Mun)
Normal
Cottage Industry /Artisan / Weavers / Small
production orientedestablishment in Non
Municipal area ¬ runby electricity as motive
power
RateA(Cm-II) Normal
Poultry, Duckery,Horticulture, Tissueculture, Floriculture,
Herbal – Medicinal – Bio-diesel Plant Farming,Food Processing Unit
RateA(Cm-III)
7.
8.
Normal6.
Public utility/ SpecifiedInstitution Public Bodies
275 17.00 hrs to 20.00 hrs.
23.00 hrs to 06.00 hrs
06.00 hrs. – 17.00 hrs.& 20.00 hrs - 23.00
hrs.
17.00 hrs to 20.00 hrs.
23.00 hrs to 06.00 hrs
06.00 hrs. – 17.00 hrs.& 20.00 hrs - 23.00
hrs.
Prepaid - TODRate
A(Cm-PU)(Mun) ppt
On all UnitsNil
RateA(Cm-PU)(Mun) pp
Prepaid On all Units Nil285
9.
06.00 hrs to 17.00hrs
Allunits
17.00 hrs to 23.00hrs.
Allunits
Above 900 465
385
Allunits
17.00 hrs to 23.00hrs.
Allunits
Allunits
23.00 hrs to 06.00hrs.
355Allunits
Rs 5/- perconsumer
/month
Rs 5/- perconsumer
/monthNOT APPLICABLE390
330
350
326above 600
247
380
414
275
First
West Bengal Electricity Regulatory Commission 109
Tariff Order of WBSEDCL for 2007-08
Annexure A2
EnergyCharge
EnergyCharge
P/kWh P/kWh
1. Lokdeep / Kutirjyoti RateA(Dm-K)
Rs. 28 perconsumer per
month
2. Labour Line(Domestic )
RateA(Dm-L) 242
06.00 hrs to17.00 hrs All units 137 All units 137
17.00 hrs to23.00 hrs.
All units 475 All units 475
23.00 hrs to06.00 hrs
All units 75 All units 75
4.Irrigation pumping for
Agriculture (Metered supplyfrom mixed HV feeder )
Rate C(a) 150 Nil
Rs 6750/consumer/
annum
Rs 8800/consumer/
annum
Rs 8000/consumer/
annum
Rs 10800/consumer/
annum
Normal 0 to 25 NOT APPLICABLE NOT APPLICABLE
Normal All units NOT APPLICABLE NOT APPLICABLE
Type of Consumer
Irrigation pumping forAgriculture (Un-Metered) Normal
Applicable Tariff Scheme
Monthly consumption inKWH
Fixed Charge
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
5.
Consumercategory
Name of the TariffScheme
Optional Tariff Scheme – IMonthly consumption in
KWHName of the
Tariff Scheme
NOT APPLICABLE
Sl No Consumer category
3.Irrigation pumping for
Agriculture(Metered)
NOT APPLICABLE
Normal All units
Consumer categoryFixed Charge Energy Charge
P/kWh
Name of theTariff Scheme
Monthly consumption inKWH
NOT APPLICABLERateC(t)
Normal TOD
RateC(b)
STW in Other District
Submersible in NB
Submersible in OtherDistrict
Nil
STW in NB
NOT APPLICABLENOT APPLICABLE
RateC(t)ppt
Prepaid - TOD
06.00 hrs to 17.00hrs
17.00 hrs to 23.00hrs.
23.00 hrs to 06.00hrs
Nil
West Bengal Electricity Regulatory Commission 110
Tariff Order of WBSEDCL for 2007-08
Annexure A2
EnergyCharge
EnergyCharge
P/kWh P/kWh
Type of Consumer
Applicable Tariff Scheme
Monthly consumption inKWH
Fixed Charge
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Consumercategory
Name of the TariffScheme
Optional Tariff Scheme – IMonthly consumption in
KWHName of the
Tariff SchemeSl No Consumer category Consumer categoryFixed Charge Energy Charge
P/kWh
Name of theTariff Scheme
Monthly consumption inKWH
06.00 hrs to17.00 hrs All units 375
17.00 hrs to23.00 hrs.
All units 475
23.00 hrs to06.00 hrs
All units 349
06.00 hrs to17.00 hrs All units 170
17.00 hrs to23.00 hrs. All units 500
23.00 hrs to06.00 hrs All units 100
06.00 hrs to17.00 hrs
All units 390
17.00 hrs to23.00 hrs.
All units 525
23.00 hrs to06.00 hrs All units 363
06.00 hrs to17.00 hrs
All units 400
17.00 hrs to23.00 hrs. All units 440
23.00 hrs to06.00 hrs All units 372
Prepaid- TOD8.
Rs 10/- per kvaper monthShort Term Irrigation Supply
Short Term supply forCommercial Plantation
7.
9.
Rs 10/- per kvaper month
NOT APPLICABLE
Short-term Supply
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE NOT APPLICABLE
NOT APPLICABLE
Commercial Plantation
Rs 10/- per kvaper month
Rs 12/- per kvaper month
RateC(t) - STIS
Prepaid - TOD
Prepaid- TOD
RateA(ST)
RateA(Cm)-STCP
RateA(Cm) - CP
Prepaid- TOD6.
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 111
Tariff Order of WBSEDCL for 2007-08
Annexure A2
EnergyCharge
EnergyCharge
P/kWh P/kWh
Type of Consumer
Applicable Tariff Scheme
Monthly consumption inKWH
Fixed Charge
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Consumercategory
Name of the TariffScheme
Optional Tariff Scheme – IMonthly consumption in
KWHName of the
Tariff SchemeSl No Consumer category Consumer categoryFixed Charge Energy Charge
P/kWh
Name of theTariff Scheme
Monthly consumption inKWH
AllUnits 268
AllUnits
402
AllUnits
185
Next 1500 391All
UnitsAll
Units248
Next 1500 406 AllUnitsAll
Units257
13. Street LightingRateD(1) 233 Nil
On allUnits 373
On allUnits 410
On allUnits
347
273Rate
B(II) tppPrepaid - TOD
AllUnits
06.00 hrs to 17.00hrs
Rs 10/- perKVA permonth
23.00 hrs to 06.00hrs
Normal - TOD
06.00 hrs to 17.00hrs & 20.00 hrs to
23.00 hrs
17.00 hrs to 20.00hrs
Rate B(I-U) t
Rs 12/- perKVA permonth
390
546Rs 12/- per
KVA permonth
23.00 hrs to 06.00hrs
17.00 hrs to 23.00hrs
AllUnits
375
525
17.00 hrs to 20.00hrs.
NOT APPLICABLE
23.00 hrs to 06.00hrs
Public Water Works &Sewerage System Nil
RateB (II)
Normal Nil
06.00 hrs. – 17.00hrs. & 20.00 hrs -
23.00 hrs.
On all Units10.
NormalIndustry (Urban)
Above
375On all Units14. Normal
Normal
Private EducationalInstitutions and Hospitals
RateD(4)
On all Units
Rs 10/- perKVA per month
11. Industry (Rural)
432
12.
412
RateB(I-U)
NormalRate
B(I-R)
3500
First 500
Above 2000
First 500
279
Rs 12/- perKVA per month
Normal - TOD
294
Rs 12/- perKVA per month
17.00 hrs to 23.00hrs
23.00 hrs to 06.00hrs
06.00 hrs to 17.00hrs
RateB(I-R) t
Normal - TOD
NOT APPLICABLE
NOT APPLICABLE
RateD(4) t
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 112
Tariff Order of WBSEDCL for 2007-08
Annexure A2
EnergyCharge
EnergyCharge
P/kWh P/kWh
Type of Consumer
Applicable Tariff Scheme
Monthly consumption inKWH
Fixed Charge
LOW AND MEDIUM VOLTAGE CONSUMERS
Optional tariff SchemeOptional Tariff Scheme - II
Consumercategory
Name of the TariffScheme
Optional Tariff Scheme – IMonthly consumption in
KWHName of the
Tariff SchemeSl No Consumer category Consumer categoryFixed Charge Energy Charge
P/kWh
Name of theTariff Scheme
Monthly consumption inKWH
06.00 hrs to17.00 hrs
On allUnits 450
17.00 hrs to23.00 hrs
On allUnits 675
23.00 hrs to06.00 hrs
On allUnits
311
06.00 hrs. –17.00 hrs. &20 .00 hrs to
23.00 hrs
On allUnits 390
17.00 hrs to20.00 hrs.
On allUnits
575
23.00 hrs to06.00 hrs
On allUnits 257
On allUnits 298
On allUnits
328
On allUnits 277
06.00 hrs. –17.00 hrs. &20 .00 hrs to
23.00 hrs
On allUnits 360
17.00 hrs to20.00 hrs.
On allUnits 505
23.00 hrs to06.00 hrs
On allUnits 238
NOT APPLICABLE
18.
Nil
15.
Construction Power Supply16.
Rs 12/- perKVA per monthRate D(8)
RateD(5)
Rate D(7)
Rs 10/- per kvaper month
Prepaid - TOD
Bulk Supply at single point toCo-operative Group HousingSociety for providing powerto its members or person for
providing power to itsemployees in a single
premises
Prepaid- TOD
Prepaid-TOD
Common Services ofIndustrial Estate
Emergency
Rate D(6)
300All units17. Normal
Nil
NOT APPLICABLE
NOT APPLICABLENormal - TOD Nil
23.00 hrs to 06.00hrs
06.00 hrs to 17.00hrs
17.00 hrs to 23.00hrs
NOT APPLICABLE
RateD(7)t
NOT APPLICABLENOT APPLICABLE
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 113
Tariff Order of WBSEDCL for 2007-08
Annexure A2
Fixed Charge
West Bengal Electricity Regulatory Commission 114
Tariff Order of WBSEDCL for 2007-08
Annexure A2
Fixed Charge
West Bengal Electricity Regulatory Commission 115
Tariff Order of WBSEDCL for 2007-08
Annexure A2
Fixed Charge
West Bengal Electricity Regulatory Commission 116
Tariff Order of WBSEDCL for 2007-08
Annexure A2
Fixed Charge
West Bengal Electricity Regulatory Commission 117
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
06.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs
All Units 399 396 393
23.00 hrs-06.00 hrs
All Units 181 180 179
06.00 hrs-17.00 hrs
&20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs
All Units 397 394 391
23.00 hrs-06.00 hrs
All Units 181 179 178
06.00 hrs-17.00 hrs
All Units 366 365 364
17.00 hrs-23.00 hrs
All Units 549 548 546
23.00 hrs-06.00 hrs
All Units 253 252 251
06.00 hrs-17.00 hrs
All Units 345 343 341
17.00 hrs-23.00 hrs
All Units 518 515 512
23.00 hrs-06.00 hrs
All Units 238 237 235
SlNo
Type of Consumer Applicable Tariff Scheme
1 Normal All Units 266Public Utility
(11 KV) 264 262
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
261 259
200
258
Rate F(at) 200Normal -
TOD
All Units 262 260
2 Normal All Units 265Rate F(a) 263 261
3
Rate E(a)
Public Utility(33 KV)
200Normal All Units 367 366 365 200
4 Rate F(b) Normal All Units 347 345 Rate F(bt)343 200
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
Industries(11 KV)
Industries(33 KV)
Normal -TOD
200
P/kWh
All Units 263
200Normal -
TODRate E(at)
Rate E(bt) Normal -TOD
200
Rate E(b)
(Rs./ KVA/month)
(Rs./ KVA/month)
West Bengal Electricity Regulatory Commission 114
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
SlNo
Type of Consumer Applicable Tariff Scheme
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
P/kWh(Rs./ KVA/
month)(Rs./ KVA/
month)
06.00 hrs-17.00 hrs
All Units 330 328 326
17.00 hrs-23.00 hrs
All Units 495 492 489
23.00 hrs-06.00 hrs
All Units 228 226 225
06.00 hrs-17.00 hrs
All Units 322 320 318
17.00 hrs-23.00 hrs
All Units 483 480 477
23.00 hrs-06.00 hrs
All Units 222 221 219
06.00 hrs-17.00 hrs
All Units 320 318 316
17.00 hrs-23.00 hrs
All Units 448 445 442
23.00 hrs-06.00 hrs
All Units 211 210 209
06.00 hrs-17.00 hrs
All Units 326 324 325
17.00 hrs-23.00 hrs
All Units 489 486 488
23.00 hrs-06.00 hrs
All Units 163 162 163
06.00 hrs-17.00 hrs
All Units 380 376 378
17.00 hrs-23.00 hrs
All Units 532 526 529
23.00 hrs-06.00 hrs
All Units 251 248 249
200 Rate I(bt) Normal -TOD
200All Units 327 325 3236 Industries(220KV)
Rate I(b) Normal
200 Rate H(bt)Normal -
TOD200All Units 332 330 3285
Industries(132 KV)
Rate H(b) Normal
RateS(cpt)
Normal -TOD
8CommunityIrrigation/Irrigation
Normal -TOD NilRate S(gt)
2009
Normal All Units 3257 321Normal -
TOD200Rate J(b)
CommercialPlantation
323 Rate J(bt)200Industries(400 KV)
NOT APPLICABLE
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 115
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
SlNo
Type of Consumer Applicable Tariff Scheme
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
P/kWh(Rs./ KVA/
month)(Rs./ KVA/
month)
06.00 hrs-17.00 hrs
All Units 345 341 343
17.00 hrs-23.00 hrs
All Units 483 477 480
23.00 hrs-06.00 hrs
All Units 228 225 226
06.00 hrs-17.00 hrs
All Units 390 386 38817.00 hrs-23.00 hrs
All Units 546 540 543
23.00 hrs-06.00 hrs
All Units 257 255 256
06.00 hrs-17.00 hrs
All Units 388 386 384
17.00 hrs-23.00 hrs
All Units 582 579 576
23.00 hrs-06.00 hrs
All Units 268 266 265
06.00 hrs-17.00 hrs
All Units 370 369 368
17.00 hrs-23.00 hrs
All Units 555 554 552
23.00 hrs-06.00 hrs
All Units 255 255 254
Normal
11
Short TermSupply for
CommercialPlantation
Normal -TOD
Short TermIrrigation Supply
Normal -TOD10
13 Normal
Commercial(11 KV)
RateE( c )
12
Commercial(33 KV)
RateF( c )
All Units 371 200
NOT APPLICABLE
Nil
RateF(ct)
Normal -TOD 200
All Units 390 388 200
200
200RateE( ct )
386 Normal -TOD
370 369
RateS(cpt-st)
RateS(gt-st)
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 116
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
SlNo
Type of Consumer Applicable Tariff Scheme
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
P/kWh(Rs./ KVA/
month)(Rs./ KVA/
month)
06.00 hrs-17.00 hrs
All Units 348 346 344
17.00 hrs-23.00 hrs
All Units 487 484 482
23.00 hrs-06.00 hrs
All Units 230 228 227
06.00 hrs-17.00 hrs
All Units 359 357 355
17.00 hrs-23.00 hrs
All Units 395 393 391
23.00 hrs-06.00 hrs
All Units 334 332 331
06.00 hrs-17.00 hrs &
20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 399 396 393
23.00 hrs-06.00 hrs
All Units 181 180 179
06.00 hrs-17.00 hrs &
&
20.00 hrs-23.00 hrs
17.00 hrs-20.00 hrs
All Units 397 394 391
23.00 hrs-06.00 hrs
All Units 181 179 178
16Rate
E (pw)
Public WaterWorks &
Sewerage(33 KV)
359 357
348
NilAll Units 361
Public WaterWorks &
Sewerage(11 KV)
RateE(pwt)
Normal All Units
Normal -TOD
Normal -TOD
Nil
RateH(ct)
RateS(dt)
20014 Normal All Units 350Commercial(132 KV)
RateH(c)
15 DomesticRateS(d)
Normal
All Units 261 200
All Units
346 200
262 260
Normal -TOD
All Units
259
RateF(pwt)
258
263 261
200
266Normal -
TOD200
265 263
264 262
17RateF(pw)
Normal
200
West Bengal Electricity Regulatory Commission 117
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
SlNo
Type of Consumer Applicable Tariff Scheme
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
P/kWh(Rs./ KVA/
month)(Rs./ KVA/
month)
06.00 hrs-17.00 hrs
All Units 255 254 25317.00 hrs-23.00 hrs
All Units 357 356 354
23.00 hrs-06.00 hrs
All Units 168 168 167
06.00 hrs-17.00 hrs
All Units 255 254 253
17.00 hrs-23.00 hrs
All Units 357 356 354
23.00 hrs-06.00 hrs
All Units 168 168 167
06.00 hrs-17.00 hrs
All Units 375 373 371
17.00 hrs-23.00 hrs All Units 525 522 519
23.00 hrs-06.00 hrs
All Units 248 246 245
06.00 hrs-17.00 hrs &20.00 hrs.-23.00 hrs
All Units 380 378 376
17.00 hrs-20.00 hrs
All Units 532 529 526
23.00 hrs-06.00 hrs
All Units 251 249 248
RateS(c )
Normal All Units
255
257 256
368
All Units
369
257 200
200
256
255
366 Nil
RateS(ft)
Normal -TOD
200
200Rate
S(ft-pi)
20 Normal
18
Sports Complex &Auditorium run byGovt./ local bodiesfor cultural affairs
19
Cold storage fornon perishableitems & Dairies
with Chilling Plant(11 KV)
RateS(f)
NormalCold storage forperishable items
(11 KV)
RateS(f-pi)
All Units
22ConstructionPower Supply
Rate S(con)Normal-
TOD
21Emergency
SupplyRateS(es)
Normal-TOD
Normal -TOD 200
200
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
West Bengal Electricity Regulatory Commission 118
Tariff Order of WBSEDCL for 2007-08
Annexure A3
DemandCharge
DemandCharge
Summer Monsoon WinterSummer Monsoon Winter
SlNo
Type of Consumer Applicable Tariff Scheme
Name of theTariff
Scheme
Optional Tariff Scheme
Consumercategory
Name of theTariff
Scheme
Consumption permonth in KWH
Energy Charge
P/kWh
Consumercategory
Consumption permonth in KWH
Energy Charge
HIGH & EXTRA HIGH VOLTAGE CONSUMERS
P/kWh(Rs./ KVA/
month)(Rs./ KVA/
month)
06.00 hrs-17.00 hrs
All Units 349 347 345
17.00 hrs-23.00 hrs
All Units 384 382 380
23.00 hrs-06.00 hrs
All Units 325 323 321
06.00 hrs-17.00 hrs &20.00 hrs.-23.00 hrs
All Units 365 363 361
17.00 hrs-20.00 hrs
All Units 511 508 505
23.00 hrs-06.00 hrs
All Units 241 240 238
25 Traction (25KV)
Rate T (a) Normal 345 343 340 200
26 Traction (132KV)
Rate T (b) Normal 315 313 310 200
06.00 hrs-17.00 hrs
All Units 340 338 336
17.00 hrs-23.00 hrs
All Units 374 372 370
23.00 hrs-06.00 hrs
All Units 316 314 312
06.00 hrs-17.00 hrs
All Units 380 378 376
17.00 hrs-23.00 hrs
All Units 418 416 414
23.00 hrs-06.00 hrs
All Units 353 352 350
All Units
200
351 347349 Nil Normal -TOD
27 Short-term SupplyNormal -
TOD
All Units
All Units
Rate S(st)
23
Bulk Supply at singlepoint to Co-operative
Group HousingSociety for providingpower to its members
or person forproviding power to itsemployees in a single
premises
Normal
24Common Services
of IndustrialEstate
RateE (ct-cs)
Normal -TOD
Rate S(co)
NOT APPLICABLE
NOT APPLICABLE
NOT APPLICABLE
Nil
NOT APPLICABLE
Rate S(cot)
All Units28Private Educational
InstitutionsRate
E (c-ei)Normal 382 380 378
200
RateE (ct-ei)
Normal -TOD 200200
West Bengal Electricity Regulatory Commission 119
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission120
ANNEXURE–A4
POWER PURCHASE PRICE DETAIL BY WBSEDCL FROMDIFFERENT SOURCES
SlNo. POWER PURCHAE SOURCES PRICE IN
PAISA / UNIT1 WEST BENGAL RENEWABLE ENERGY DEVELOPMENT AGENCY 250.002 DAMODAR VALLEY CORPOARTION -132 KV 304.933 DAMODAR VALLEY CORPOARTION -33 KV 304.934 DAMODAR VALLEY CORPOARTION -11 KV 304.935 DAMODAR VALLEY CORPOARTION- Peak power for 6 hours daily 329.936 CHUKHA HYDRO POWER STATION FROM BHUTAN 160.147 KURICHHU HYDRO POWER STATION FROM BHUTAN 160.148 TALA HYDRO POWER STATION FROM BHUTAN 184.009 RANGEET OF NATIONAL HYDRO POWER CORPORATION 199.4010 FARRAKA STPS OF NATIONAL THERMAL POWER CORPORATION 168.43
11KAHELGAON STPS OF NATIONAL THERMAL POWERCORPORATION 168.43
12 TALCHER STPS OF NATIONAL THERMAL POWER CORPORATION 168.4313 DIFFERENT TRADERS 486.0014 RANGPOO OF SIKKIM 372.0015 ELECTRO STEEL 253.0016 CESC IN RADIAL MODE 266.06
17 HOOGHLY METCOCK 186.03Note: The price of purchase from sl no. 1 to 13 is subject to changes as per actual in accordance
with law.
PURCHASE PRICE OF WBSEDCL FROM WBPDCL GENERATINGSTATIONS IN PAISA / KWHR
Summer Monsoon WinterGENERATINGSTATIONS
Normal PeakOff-peak Normal Peak
Off-peak Normal Peak
Off-peak
Kolaghat TPS 191.40 197.40 187.40 189.40 195.40 185.40 187.40 193.40 182.40Bakreswar TPS 179.56 185.56 175.56 177.56 183.56 173.56 175.56 181.56 170.56Bandel TPS 211.05 217.05 207.05 209.05 215.05 205.05 207.05 213.05 202.05Santaldih TPS 199.15 205.15 195.15 197.15 203.15 193.15 195.15 201.15 190.15Bakreswar (New Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67Sagardih (new Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67Santaldih (New Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission121
SEASONWISE PURCHASE PRICE OF ELECTRICTY BYWBSEDCL FROM DPL
SEASONITEM
Time Slot SUMMER MONSOON WINTERENERGY RATE (paisa/Kwh) PEAK 245.66 245.66 245.66
NORMAL 242.66 242.66 242.66OFF_PEAK 240.76 240.76 240.76
SEASONWISE PURCHASE PRICE OF ELECTRICTY BYWBSEDCL FROM DPSCL
SEASONITEMTime Slot SUMMER MONSOON WINTER
ENERGY RATE (paisa/Kwh) PEAK 358.76 356.76 354.76NORMAL 356.76 354.76 352.76OFF_PEAK 353.76 351.76 348.76
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission122
ANNEXURE-B
1.0 In terms of Section 131 of Electricity Act 2003, WBSEB, after being reorganized
in accordance with the transfer scheme, has been replaced by West Bengal
State Electricity Distribution Company Limited (WBSEDCL) with effect from
1.4.2007 in so far as the functions and business in distribution activities and
activities related to hydro undertakings are concerned and all liabilities of
WBSEB in this regard have been vested in WBSEDCL.
The Commission issued certain directions vide Annexure-B to Chapter-10 in
the Tariff Order for the financial year 2006-07 to erstwhile WBSEB as a
Distribution Licensee. WBSEDCL, being the distribution licensee of the
licensed area of erstwhile WBSEB, the responsibility of complying with the
directives of the Commission vests on it.
The Commission’s observations in respect of the compliances of the directives
are as below:
2.0 The Commission directed the licensee (erstwhile WBSEB) vide Clause -1 of
the aforesaid Annexure to Chapter-10 to make a time bound plan for
implementation of 100% metered supply at the consumer end and submit it to
the Commission within 3 months. The licensee was directed to submit first
status report in regard to implementation of the plan within 3 months from
submission of the plan and submit the 2nd status report within 6 months
thereafter.
2.1 The Commission directed the licensee (erstwhile WBSEB) vide Clause 2(a) of
the Annexure to bring the consumers receiving un-metered supply under the
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission123
fold of metered supply. The Commission further directed to assign priority to
irrigation consumers followed by the street lighting.
2.2 In reply, WBSEB has submitted the report under cover of its letters dated
28.09.2006, dated 6.3.2007 and the report in the tariff petition of WBSEDCL
filed for 2007-08 which indicate:
i) All consumers receiving electricity at HV and EHV are provided with
proper metering.
ii) All L & MV domestic (except Lokdeep / Kutirjoyti), commercial,
industrial, PWW consumers receiving electricity are provided with
proper metering.
iii) All L & MV Rural Domestic consumers connected with MCB have
already been brought under metered connection.
iv) In WBSEB system, all DTW and RLI pump-sets are connected through
proper metering arrangement.
In their plan for implementation of 100% metered supply, WBSEB under the
same letter submitted a time bound programme for metered supply to the
remaining un-metered agricultural consumers. WBSEB has informed that the
licensee has undertaken a programme for implementation of installation of
energy meters and allied works for around 1,00,000 numbers of existing un-
metered agricultural consumers on turn-key basis. Orders have been stated
to have been placed on two firms for design, manufacturing, delivery,
installation, testing and commissioning of 3 phase outdoor type static TOD
energy meters covered in poly carbonate box. It has been stated that
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission124
WBSEB’s orders have been placed also for operation and maintenance
including replacement of damaged meters, taking meter readings and delivery
of energy bills for two years. As mentioned by WBSEB the work is expected
to be completed by April, 2008. In their subsequent report the WBSEB has
informed that upto 20th February, 2007 in the premises of around 23,950
numbers of un-metered agricultural consumers such meters and other
accessories have been installed. WBSEB has also informed the action being
taken for converting un-metered Lokdeep / Kutirjyoti connection to metered
supply in a phased manner. A time bound programme for installation of
meters in the premises of these consumers has also been stated to have
been initiated. WBSEB expects that the metering of these consumers would
be completed by March, 2007. In the subsequent status report, WBSEB has
informed that out of total 60,323 numbers of un-metered Lokdeep / Kutirjyoti
connection 31,426 numbers have been provided with meter supply upto
31.12.2006. WBSEB expected that the balance un-metered Lokdeep /
Kutirjyoti connection will also be provided with meter supply by March, 2007.
WBSEB informed that action has been initiated for preparation of a scheme
for metering of all street light points under the control of local bodies for which
WBSEB has sought the cooperation of Municipalities and Gram Panchayets.
In the status report it has been informed that necessary field survey for
metering of all street light points has already been carried out by WBSEB. It
is also informed that in many places re-arrangement of existing distribution
mains as well as construction of some new distribution mains are needed to
be executed before metering of street light point. WBSEB had already
completed metering of 2,119 numbers of points of street light till 31.12.2006
and is putting up all efforts to bring street lighting under the fold of metered
supply.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission125
2.3 The Commission, therefore, directs WBSEDCL to indicate the number of
consumers under different categories who are being supplied with un-metered
electricity as on 31.3.2007. This information along with the programme of
completion of conversion of remaining un-metered supply under these
categories shall be submitted by the WBSEDCL to the Commission within 3
months from the date of issuance of this order.
3.0 The Commission directed WBSEB in the tariff order for 2006-07 vide clause-3 that
till dedicated feeders for effecting supply to agricultural consumers for irrigation
purpose are put in place, supply to such consumers who already received metered
supply and those who currently received un-metered supply but may have meters
installed in course of 2006-07, may be given an option to receive supply on TOD
basis. It was further directed that such optees may be allowed to pay cost of meters
in 8 equated instalments covering a period of any 24 months starting from the month
in which the meter is installed.
During the year 2006-07, WBSEB has reported to have taken massive
programme for conversion of all un-metered agricultural supply into metered
supply.
It has also been reported that 23,950 numbers of un-metered agricultural
consumers out of 1,00,000 such consumers have, by 20.2.2007, been
provided with TOD meters by WBSEB irrespective of any option.
WBSEDCL has further informed that the billing on TOD basis for these
consumers will, however, commence from 1.4.2007. In the case of
agricultural consumers receiving metered supply the change over to TOD
system has, according to WBSEDCL’s report, not made much progress
because of poor response of the consumers to opt for TOD meters.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission126
3.1 It has been reported by WBSEDCL that 1548 numbers of HV consumers, out
of which 1450 numbers being 11 KV consumers, 90 numbers being 33 KV
consumers and 8 numbers being 132 KV consumers have already been
brought under TOD tariff and this has caused a trend in shifting of load from
peak to off-peak.
In regard to introduction of TOD metering for industrial & commercial
consumers on optional basis, WBSEDCL has informed that notice was served
to industrial & commercial consumers having load of 35 KVA / 25 HP
explaining the features of TOD metering, encouraging them to adopt TOD
system of metering and asking for their option for changeover to TOD system.
WBSEDCL has further reported that they have received 7 options from 7
industrial consumers of Howrah and Burdrwan districts having load more than
25 KVA / 25 HP.
3.2 WBSEDCL is directed to approach the abovementioned agricultural,
industrial & commercial consumers who have not yet adopted TOD
system through letters and printed leaflets for acceptance of TOD
metering and at the same time try to find out the reason of non-
acceptance of TOD metering by these consumers. WBSEDCL shall
convince these consumers by removing the reasons of inhibition and
through proper counseling during taking the meter reading by direct
interaction, during sending the bill through written materials and during
collection of dues by personal interaction and by means of leaflets,
banners etc. at the Centre of Collection.
The first report in this regard may be submitted to the Commission after
four months but within six months of the issuance of this order. The
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission127
tariff petition for 2008-09 shall give a full report about the achievements
and failures in this regard.
4.0 WBSEB was directed to submit the scheme for wide application of prepaid
metering in all districts in phases along with detailed price break up of such
meters.
4.1 WBSEDCL along with the tariff petition for 2007-08 has submitted the report
indicating that 46 numbers of prepaid energy meters (both single phase and 3
phase) have been installed at the supply point to common service in some of
the housing complexes at Newtown as a pilot project. For raising the
consumers awareness steps have been taken to highlight the advantage of
prepaid meter through press release advertising in newspapers and through
advertisement on trolley in Salt Lake and Newtown area. Direct
interconnection with the consumers was also arranged to explain the different
features of the prepaid meter along with the benefits that may accrue out of it.
It has also been reported that leaflets containing advantages of using these
meters have been circulated to the consumers of Newtown and Salt Lake.
WBSEDCL has further suggested that multiple slab tariff system prevailing in
W.B needs to be simplified in respect of consumers to be covered under
prepaid energy meter. WBSEDCL has further pointed out that the price of the
meter is very high compared to the conventional electronic meter. The cost of
the vending station along with the associated hardware and licensee’s
software will further raise the effective cost of prepaid metering with optional
key pad. WBSEDCL has appealed for upward revision of meter rent for
prepaid meter to Rs.50/- and Rs.100/- per month for single phase and 3
phase meter respectively. WBSEDCL has alternatively proposed that the
cost of prepaid energy meter be paid by the consumer on optional basis with
the nominal meter rent of Rs.15/- per month. WBSEDCL has informed their
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission128
plan to introduce the prepaid energy meter at Newtown and Salt Lake on
optional basis. WBSEDCL has reported to have already inaugurated a
vender machine at Salt Lake area at Vidyut Bhawan. WBSEDCL has
submitted their plan for introduction of prepaid metering in the district town by
October, 2007.
The progress made by WBSEDCL in introducing the prepaid metering system
has been noted by the Commission with satisfaction.
4.2 It is now directed to expand the scope of use of such system among
more number of consumers in the State. The option for purchase of
prepaid meter by the consumers according to the specified standards
and make along with proven quality may be allowed to the consumers.
4.3 The Commission also directs WBSEDCL to furnish quarterly report on
the status of pre-paid meter installation programme already undertaken
showing the number of consumers with categories who have applied for
pre-paid meters, number of consumers in each category who have been
provided with pre-paid meters, etc along with the specific remedial
measures undertaken to remove the bottlenecks, if any, arisen during
such implementation programme. The reports shall also form a part of
the next tariff revision application.
5.0 In regard to the independent third party meter testing arrangement directed in
the tariff order for 2006-07, WBSEDCL has informed that this subject has
already been taken up with reputed engineering colleges within the State and
the matter is being pursued for early setting up of such facilities in meter
testing. A negotiation is also under progress with Central Power Research
Institute (CPRI) for providing the independent third party meter testing
facilities in their Eastern Regional Laboratory at Kolkata.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission129
5.1 WBSEDCL is directed to continue its efforts to establish and
operationalise accredited independent third party meter testing
arrangement expeditiously and report to the Commission within six
months of the issue of this order.
6.0 In regard to the preparedness for becoming a successful ABT compliant
licensee, WBSEDCL in the tariff petition has reported the installation of proper
meter and successful participation in the mock exercise and UI accounting in
ABT mode. WBSEDCL has informed that UI ‘mock’ bills are being regularly
sent to the constituents by WBSEDCL. A separate set up of ALDC (Area
Load Despatch Centre) to facilitate the ABT mode of operation has been
reported to have been formed on behalf of WBSEDCL and the personnel to
operate the ALDC are reported to be receiving training at the SLDC.
6.1 WBSEDCL is directed to make their ALDC operational expeditiously so
that the implementation of ABT can be achieved as per the programme.
7.0 In regard to the directives of the Commission to promote and explore the
possibilities of purchase of power from renewable sources, WBSEDCL has
submitted in the tariff petition that WBSEDCL has already began the process
of purchasing of power from WBREDA from windmill and has signed an
agreement for purchasing of power generated from bio-gas plant project of
M/s. Mohan Dairy, Purulia. It has also been reported that power from
cogeneration sources have been purchased from such sources belonging to
private entrepreneurs. Power from small hydel project developed by the
private entrepreneur is also being purchased from April, 2006 onwards. It has
been reported that more than 4.3 MU of energy was purchased by WBSEB in the
year 2006-07 (upto February, 2007). WBSEDCL has also reported to have
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission130
entered into an agreement with three other private entrepreneurs for green
power. WBSEDCL is also reported to have negotiated with a few small hydel
plants and bio-mass based power plants. It has been reported that the
aggregated capacity of power to be generated from renewable and non-
conventional sources of energy by the intending developers is around 57.13
MW.
7.1 The Commission has noted the progress made by WBSEDCL in regard to
promoting renewable energy and procuring such energy from various
renewable sources.
7.2 The Commission directs WBSEDCL to pursue the procurement of
energy from renewable and cogeneration sources to achieve the target
set for the year 2007-08 in the relevant regulations of the Commission
and report the details of achievement within six months from the date of
issue of this order along with the final report in the tariff petition for the
year 2008-09. The Commission further directs WBSEDCL to open up
the scope for power purchase from grid connected solar energy
sources & from municipal solid wastes.
8.0 The Commission directed WBSEB to take action towards conservation of
energy by adopting energy efficient process and demand side management.
WBSEDCL in their tariff petition has submitted that the provisions included in
the tariff order passed by the Commission for the year 2006-07 for WBSEB
like introduction of TOD metering, voltage-wise graded load factor rebate and
surcharge, time graded power factor rebate and surcharge etc. had been
utilized by WBSEB for demand side management. It is reported that WBSEB
had introduced high voltage distribution supply system for agricultural
consumers. WBSEB has installed distribution substation of capacity 10 KVA,
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission131
11/ 0.4 KV for every two STW consumers minimizing loss in the peak period
and managing demand.
WBSEB is reported to have taken action for conservation of energy in its
office & HV / EHV substations by installing energy efficient lighting, neon
signs etc. New HV / EHV substations are being planned with such lighting
and in older substations the lighting system is being replaced. Solar cell
panels has been stated to have been installed at the headquarters of the
licensee. Capacitor banks are stated to have been installed and the process
is still continuing in various places.
8.1 WBSEDCL is directed to take all advantages of all the provisions of the
tariff order for demand side management and conservation of energy.
The licensee is further directed to encourage the consumers to use
energy efficient lamps, electronic regulators and other suitable gadgets
and is further directed to advise the consumers suitably to avoid higher
leakage in their installations and to provide suitable other advises to the
consumers for effecting energy conservation.
8.2 The Commission also directs WBSEDCL to submit a detailed plan of
programme on energy saving and conservation scheme, other than
power factor rebate and load factor rebate, for next five years as well as
its implementation programme along with the next tariff application.
9.0 The Commission in the tariff order for 2006-07 directed WBSEB to develop
Rural Electrification Distribution Backbone (REDB) with at least one 33 / 11
KV substation in every block appropriately networked and connected to the
State Transmission System along with at least one distribution transformer in
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission132
each village with particular attention to dalit bustees, tribal areas and
dwellings of weaker section of society.
It has been reported by WBSEDCL that a massive programme for
electrification of virgin mouzas / villages has been undertaken along with
intensification of presently electrified villages. System improvement works
have also been taken up. All these activities include installation of REDB. It
has been further reported that out of 37910 inhabited mouzas 32190 numbers
have been declared electrified by March, 2005. Programme of electrification
for 4283 numbers of mouzas has been taken up under RGGVY scheme. Out
of these, 3826 numbers of mouzas have been entrusted to 4 Central Public
Sector Undertakings and 457 numbers of virgin mouzas have been entrusted
to WBSEB (presently WBSEDCL). According to the report 497 numbers of
mouzas out of 3826 numbers of mouzas have been declared electrified upto
31.12.2006 whereas 284 numbers of mouzas out of 457 mouzas which was
entrusted to WBSEB has been completed by 31.1.2007. It has been reported
that system improvement work under Rural Infrastructure Development
Scheme and RGGVY Scheme for strengthening the distribution network and
for erection of at least one REDB substation has been taken up. It has been
further reported that presently most of the blocks of W.B are having REDB
substation for feeding of power to the existing consumers. Out of remaining
48 numbers of blocks, scheme for erection of new substation at 11 numbers
of blocks have been prepared and taken up with REC. De-centralised
distribution is also reportedly being executed by WBREDA by means of non-
conventional sources of energy.
9.1 WBSEDCL is directed to complete the installation of REDB in the State
expeditiously and monitor their effective utilization by proper
maintenance scheme, replacement (of defective equipment) scheme and
ensure appropriate service to the rural consumers. A report regarding
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission133
this shall be submitted along with the tariff petition of 2008-09 indicating
inter alia the coverage of dalit bustees, tribal areas and dwellings of
E.W.S.
10.0 WBSEB was directed to undertake periodic energy audits in their
establishment. WBSEDCL in their tariff petition for 2007-08 has submitted
the report in connection with the energy audit. It has been reported that
energy meters against all feeders at EHV substation & lines, HV substation &
lines and about 18,000 distribution transformers have already been installed
by WBSEB to facilitate energy audit. International Institute for Energy
Conservation (IIEC), a consultant, has been reported to have been engaged
from December, 2006 for energy auditing. Energy audit at Vidyut Bhavan, the
headquarters of the licensee has been stated to have been conducted.
10.1 WBSEDCL is directed to continue with the energy audit periodically in
all their establishments and accordingly take corrective action for
conservation of energy.
10.2 The Commission directs that WBSEDCL shall conduct energy audit for
all its hydro generating stations and 400 KV sub-stations and submit
report along with next tariff petition. The Commission also directs
WBSEDCL to conduct energy audit for PPSP within six months after all
its units are put under commercial operation and submit a copy of the
report to the Commission within six months from the date of
commercial operation. The report should also include the measurement
of actual efficiency of different systems and auxiliary consumption of
different equipments of Purulia Pumped Storage Project. Along with
this report WBSEDCL shall submit the report of the performance
guarantee test.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission134
11.1 WBSEB was directed to approach its consumers particularly the bigger ones
for ensuring energy auditing and energy conservation activities. WBSEDCL
in its report in the tariff petition has submitted that a State Level Energy
Conservation Committee has been constituted by WBSEB. The committee in
consultation with National productivity Council is working towards
implementation of Energy Conservation Act within the State of West Bengal.
62 numbers of designated consumers in the State under Schedule -2(S) of
Energy Conservation Act 2000 have been approached for carrying out energy
audit in terms of the said act. Awareness programme among the consumers
of commercial and industrial category, school children, farmers etc. have
been arranged and week long programme for awareness campaign is
reported to have been organized in different parts of the State. The State
Level Energy Conservation Committee is reported to have approached the
Power Deptt., Govt. of W.B for creation of State Level Energy Conservation
Fund. National Energy Conservation Day is being observed with participation
of the representatives from other utilities and industrial houses of the State.
11.2 WBSEDCL is directed to continue with their efforts in energy
conservation and directed to try to quantify the energy saved as a result
of such efforts.
12.1 WBSEB was directed in the tariff order of 2006-07 to continue to give
adequate and appropriate publicity to the provisions of the WBERC
(Guidelines for Establishment of Forum for Redressal of Grievances of
Consumers and time & manner of dealing with such grievances by the
Ombudsman) Regulation 2006. It has been reported in the report submitted
by WBSEB along with their tariff petition for 2007-08 that a two-tier forum for
Redressal of Consumers Grievances has already been constituted by the
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission135
Board for awareness among the employees & information about the
provisions for Grievance Redressal System is stated to be prominently
displayed at all offices of WBSEB targeting the consumers. It has been
reported that monthly meeting at circle level is organized with the bulk
consumers to make them aware of the Grievance Redressal System.
Meetings are reported to have been organized at Burdwan (D) zone of
WBSEB and Behrampur (D) zone of WBSEB with the presence of high
officials of WBSEB, Ombudsman, Advocates working for WBSEB to address
the officials of the Board about the provisions of Grievance Redressal
Regulations. Several other such programmes have stated to have been
organized in district offices for the awareness of the personnel of WBSEB on
Grievance Redressal System.
12.2 The Commission directs WBSEDCL to make continuous efforts to
educate the consumers about their rights & responsibilities. It is further
directed that the procedure for redressal of the grievance of a consumer
as laid down in the Act and Regulations shall be displayed in all Cash
Collection Centers of WBSEDCL.
13.1 WBSEB was directed by the Commission to prepare a 5-year plan with
annual milestone for reducing T&D losses. WBSEB was further directed to
submit a report along with the tariff petition for 2007-08 incorporating therein
the details of efforts made for encouraging community participation, for
effective enforcement, for introduction of incentives for staff and consumers
and for technological up-gradation like reduction of LT / HT ratio and adoption
of HV distribution system etc.
In the report submitted by WBSEDCL along with their tariff petition for 2007-
08 it has been reported that the licensee has taken effective steps to reduce
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission136
T&D losses in order to gradually bring these losses at the acceptable
minimum level. It has been further reported that WBSEB has completed
metering at substations upto 11 KV feeders in two phases. Metering of
feeders for new substation are under progress in third phase. Distribution
Transformer (DTR) metering has also been reported to have been taken up
by the Board and in the first phase 10 numbers of APDRP town have been
stated to have been taken up. Out of total 13,502 numbers of DTR metering,
13,237 numbers of meters have been installed till 28.2.2007. It has been
further reported that the licensee is already carrying out massive programme
for installation of meters for all un-metered agricultural consumers, Lokdeep /
Kutirjyoti connection and street light points. In order to reduce the technical
losses the licensee is reported to have already erected several 132 KV & 33
KV substations, strengthened the distribution system and erected distribution
substation for increasing HT / LT ratio and for technical loss reduction.
Improvement in distribution network under APDRP scheme in three circles
and 16 district towns has been reported to have been taken up by the
licensee. High Voltage Distribution Supply (HVDS) system is stated to be
under implementation for power supply to agricultural consumers and also for
rural electrification programme in order to substantially reduce the technical
as well as commercial loss. For reducing overall ATC loss, Security & Loss
Prevention (S & LP) wing has been stated to have been strengthened. Theft
of electricity of around 20 MU every year by unauthorized means is being
detected by S & LP activity. It has been stated that S & LP wing had
organized 7,223 numbers of raid in 2005-06 in the licensed area of the
licensee and the target for conducting such raids has been further raised to
8,000 numbers, 9,600 numbers in the year 2006-07 and 2007-08
respectively. Important meetings are stated to have been held with high
police officials like DIG & SP at district levels for cooperation during detection
and prevention of theft. Spot billing facility introduced in some of the electric
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission137
supply stations of the licensee has also been stated to be utilized for reducing
commercial loss. It has been further reported that due to cumulative effect of
all the above activities ATC loss of WBSEB reduced from 37.86% in the year
2004-05 to 33.395% in the year 2005-06. For further reduction of ATC loss,
Geographical Information System (GIS) has been stated to have been taken
up by the Board to facilitate energy auditing, mapping and documentation of
entire power network of the licensee. Once the documentation is completed,
33 KV & 11 KV network will be planned properly on the basis of load flow
study through CYMDIST software which will according to the licensee reduce
the technical losses. The licensee has further reported that higher proportion
of low voltage sales in its licensed area is a factor for higher T&D losses
whereas in some of the districts high value consumers are stated to be
supplied by other licensees like DVC, DPSCL. It has been further reported
that the licensee is regularly taking action to avoid long 33 KV, 11 KV at LT
lines and to prevent overloading of transformers, other equipments and theft
of electricity. In the tariff petition for 2007-08 WBSEDCL has considered T&D
losses of 24.7% and has submitted a 5-year plan to reduce T&D losses to
21.6% in the year 2011-12 stated to be as per the approved restructuring plan
of Govt. of W.B.
13.2 The licensee, WBSEDCL has in their tariff petition of 2007-08 claimed a
T&D loss of 24.7%. Considering the comparative high proportion of L.T
supply, higher growth in L.T category due to massive rural
electrification activity under APDRP & RGGVY schemes and extension
of electricity supply to far flung areas the Commission has allowed T&D
loss of 22.91% for 2007-08 to the licensee. Regarding programme of
reducing T&D loss during next five years the Commission has already
engaged expert consultant whose reports are expected soon. On
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission138
receipt of this report the Commission shall take a view on the
programme of reduction of T&D loss.
14.1 In the tariff order of 2006-07 the Commission directed WBSEB to make a
detailed time bound programme for supplying power to those areas where its
load is presently supplied with power through radial mode of connection with
other licensees.
WBSEDCL in the report in this regard submitted with the tariff petition for
2007-08 has given the details of the activities being undertaken by the
licensee to take over the load of Asansol area which is now being supplied
with power radially from DPSCL and DVC substations. It has been reported
that WBSEB has erected one 220/132 KV substation at Asansol where one
160 MVA transformer and one 50 MVA transformer have already been
installed and 11 numbers of 33 KV Bays have been erected. Considering the
future load of Asansol the substation is being further strengthened by
doubling the MVA capacity. It has been reported that by this arrangement 4
numbers of 33 / 11 KV substations of WBSEB which are now being fed from
Kalipahari substation of DVC will be fed from the newly erected Asansol
substation of WBSETCL within next few months. It has also been reported
that WBSEB will then be able to supply the power to their own consumers of
Asansol area directly from WBSEB grid but the total area can be given power
from WBSEB grid in second phase when further 3 numbers of 33 / 11 KV
substations and incoming 33 KV lines from newly erected Asansol substation
including outgoing 11 KV lines are completed.
14.2 WBSEDCL is directed to submit the report within 3 months from the
date of issue of this order regarding the progress of taking over the load
of the area to be fed from Asansol 220 KV substation. WBSEDCL is
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission139
further directed to expedite the second phase of work for construction
of Niyamatpur 33 / 11 KV substation, Domohoni 33 / 11 KV substation,
Mongalpur 33 / 11 KV substation along with their incoming 33 KV lines
from Asansol 220 KV substation and outgoing 11 KV lines. The
progress made in this regard shall also be included in the aforesaid
report.
15.0 WBSEB was directed to show the impact on revenue requirement of 2006-07
with required adjustment if any to be made in 2007-08 due to introduction of
new consumer categories, graded rebate and surcharge on load factor &
power factor, introduction of TOD scheme in new areas. It has been reported
by WBSEDCL in the report submitted along with the tariff petition of 2007-08
that the impact of introduction of TOD scheme in new areas and for
introduction of new consumer categories on revenue requirement was
marginal only. In case of bulk consumers, however, the effect of graded
rebate and surcharge for load factor & power factor was noticeable. It has
been reported that higher rebate amount to the tune of Rs.15.62 crore was
considered in the year 2006-07 in the tariff petition of WBSEB. For the rebate
and surcharge on power factor an additional allowance to the tune of
Rs.12.66 crore is required.
16.0 WBSEDCL shall organize awareness programme among its working
personnel particularly with reference to standards of performance of the
licensees, supply code, grid code and various other requirements of the
Electricity Act 2003 and the Regulations of this Commission made thereunder
so as to ensure that WBSEDCL’s own employees become aware of this
requirement and conduct their official business strictly in terms of the
provisions of the Act and the Regulations made thereunder.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission140
17.0 WBSEDCL shall continue to give adequate and appropriate publicity to the
provisions of the West Bengal Electricity Regulatory Commission (Guidelines
for Establishment of Forum for Redressal of Grievances of Consumers and
Time and Manner of Dealing with Such Grievances by the Ombudsman)
Regulations, 2006 and shall submit a report to the Commission describing the
actions taken at the time of submission of the next year’s tariff petition. The
same report shall also contain a detailed picture of how the complaints of the
consumers are being redressed.
18.0 WBSEDCL shall also draw up and implement urgently a programme for
increasing the awareness of the consumers of the salient features of the
Electricity Act 2003 and the Regulations made thereunder, particularly those
that lay down the rights and the duties of the consumers as also the
standards of performance of the licensees and the ways and means to
redress consumer grievances. A status report on the matter indicating both
quantitative and qualitative aspects, should be submitted to the Commission
along with the next tariff revision petition.
19.0 In its tariff applications for the second control period and onwards, WBSEDCL shall
provide all data related to load factors computation for each stratum of load factor
range of 5% starting from 20% load factor to 90% load factor. Similar data for
stratum of load factor range of 2% starting from 90% to 100% range shall be
submitted in the said applications. In its tariff applications for the second control
period and onwards, WBSEDCL shall also provide all data related to power factors
computation for each stratum of power factor range of 1% starting from 85% power
factor to 98% power factor.
20.0 WBSEDCL shall show the power procurement from different sources below
132 KV separately along with showing the sources independently.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission141
21.0 WBSEDCL is directed to indicate proposed fixed charge in terms of per KVA per
month instead of per consumer per month for all categories of LV and MV
consumers in its tariff applications for the second control period and onwards.
WBSEDCL shall also indicate similarly the proposed demand charge in terms of per
KVA per month for all categories of HV and EHV consumers in its tariff applications
for the second control period and onwards.
22.0 WBSEDCL is directed to submit a report to the Commission within six months of
this order showing the number of consumers and their consumptions under all new
categories both on actual basis and on projection basis. The report should also
include status and projection for those classes of consumers who have no drawal at
present. The report shall also form a part of the next application for annual
performance review of the second control period.
23.0 WBSEDCL shall also make survey for determination of energy consumption pattern
and load pattern of all new categories of consumers for all three seasons for peak,
normal and off-peak period. The report of such survey shall be submitted to the
Commission with the application for annual performance review for the first year of
the second control period.
24.0 WBSEDCL shall also start to conduct safety audit in phased manner and submit the
report with the next tariff application to the Commission.
25.0 All the reports called for in this chapter are in addition to those, which are
statutorily required, either by the Act, or by any of the Regulations made
thereunder, or by any of the Regulations made thereunder, or by both for the
purpose of submission of next tariff revision petition. In case of non-
submission of such report, the Commission shall take necessary action as
deemed fit.
Tariff Order of WBSEDCL for the year 2007 – 2008
West Bengal Electricity Regulatory Commission142
26.0 WBSEDCL shall show the impact on revenue requirement of 2007 – 2008 in
the tariff petition of 2008 – 2009 with requirement of adjustment, if any, to be
made in 2008 – 2009 due to introduction of new consumer categories in new
areas in this order.
27.0 WBSEDC shall, within three months, submit a statement to the Commission
showing the details of the plan and non-plan loans received from the State
Government for capital works indicating therein the Govt. order number, date,
amount of loan, the capital work for which the loan was received and the
asset(s) created in each case. A copy each of the relevant Govt. orders shall
be enclosed with the statement. This direction is in continuation of the
direction contained in the last sentence of foregoing paragraph 6.8(e). In
case this report is not, for any reason beyond the ability of WBSEDCL to
control, ready within the aforesaid period of three months, WBSEDCL shall
submit the same within six months from the date of the instant order. This
statement shall also be submitted with the next tariff revision petition.
28.0 WBSEDCL shall maintain separate accounts for SHRELCOP and discharge
all the functions of a licensee in respect of the erstwhile licensed area of
SHRELCOP until a new distribution licensee is appointed by the Commission
for that area.
Sd/- Sd/- Sd/-
R. P. SAMADDAR PRITITOSH RAY S. N. GHOSHMEMBER MEMBER CHAIRPERSON
DATE: 01.08.2007
Corrigendum to the Tariff Order dated 01.08.2007 of the Commission in respect
of West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) in Case No.:
TP - 35/07-08
Correction of typographical errors/ apparent mistakes in the Tariff Orders dated
01.08.2007 in respect of WBSEDCL for the year 2007-08
Page
No.
Nomenclature Existing
Description
Corrected
Description
69 Paragraph 5.9.1 – 5th
line – 8th
& 9th
words inspite of in view of
102 Paragraph 8.2.2.7 – 7th
line (counting from
the beginning of the paragraph at page 101)
– 9th
word
before after
112 Annexure A2 – Last entry against Sl. No. 12
relating to Industry (Urban), under sub-
heading “Monthly consumption in KWH”,
to the column with heading “Applicable
Tariff Scheme”
Above 3500 Above 2000
137 Paragraph 13.2 – 6th
line – 3rd
word 22.91% 22.72%
Sd/- Sd/- Sd/-
(R.P.SAMADDAR) (PRITITOSH RAY) (S.N.GHOSH)
MEMBER MEMBER CHAIR PERSON
DATE: 09.08.2007