Section 4-Tariff proposals and approved tariff

Transcription

1 18. Tariff proposals Section 4-Tariff proposals and approved tariff As discussed in the foregoing paragraphs, even after taking the effect of improved Transmission & Distribution Losses, allowing of interest and other expenses on normative basis and accounting for the subsidy expected from the State Government, an uncovered gap of. 910 crore, crore and crores would remain for JVVNL, AVVNL & JdVVNL respectively at existing tariff. This amounts to a deficit of crores for all Discoms put together Discoms have proposed revision of tariff which would lead to an additional revenue of crore for Discoms during , as follows: Table:60-Expected additional revenue as proposed by Discoms for FY (. Crore) Particulars JVVNL AVVNL JdVVNL Total Expected additional revenue A large gap still remains as difference in average Cost of Supply and average realization is quite high. Therefore, a revision of tariff to cover the revenue deficit seems not only justified but is inescapable. 19. Determination of tariff While finalizing the tariff for different consumer categories, the Commission has given due consideration to the proposals of licensees, comments of stakeholders, decisions thereon and the position of cross subsidy. The Regulations of the Commission as well as National Tariff Policy visualize cross subsidy to be in + 20% range of average cost of supply and this has also been kept in view This tariff revision is the third consecutive annual tariff revision after the National Tariff policy came into force in The past accumulated revenue deficit due to gap in annual revenue revision can be wiped out only in a progressive manner and that too with the support of the State Government Commission has also kept in view the fact that the tariff increase allowed last year was quite high and successive high tariff increases would result in tariff

2 shock. However, the average realization from agriculture sector, still being too low in comparison to average cost of supply, a significant increase is inescapable for this category. The licensees have also proposed significant increase in this category Discoms have stated that they will be receiving subsidy from State Govt. for certain categories. The tariff has been determined for each category without subsidy but the subsidy indicated by Discoms has also been mentioned. The subsidy to be provided by the Govt. would result in amount payable by consumer of such category getting reduced by the subsidy amount Discoms have not proposed any change in tariff for Public Street Lighting, Small Industries, Medium Industries, Large Industries and Bulk Supply for Mixed Load. No changes have been proposed in Domestic and Non-Domestic category consumers having upto 500 s. Considering that the tariff increase in past two years when seen together have resulted in an average increase of around 40% over tariff of F.Y , the Commission accepts the said proposal of the licensees Licensees have proposed considerable increase in tariff of Agriculture category in both metered and Flat Rate category. It may be mentioned that despite the tariff increase in this category in past two years, the impact of cross subsidy continues to be very high for agriculture sector. The National Tariff Policy stipulates for the cross subsidy to come within the range of +- 20% of average CoS. The Commission therefore considers the proposed tariff increase in agriculture category worth consideration Considering that the Discoms have proposed changes in tariff in respect of only a few categories, the discussion in the following paras is limited to only those categories where changes have been proposed. For other categories, where no change is envisaged by the licensees, the Commission has accepted that existing tariff for such categories shall become approved tariff for F.Y Category wise Tariff Domestic Service (LT-1 and HT-1) No increase in energy and fixed charges have been proposed for BPL, small domestic and general domestic consumers having upto 500 s. 92

3 Introduction of new slab under general domestic category has been proposed by Discoms for consumers having above 500 s, the fixed charges for this slab have been proposed at. 225connection. Energy charges for upto 500 s shall remain same as approved in last year order. However for above 500 s the energy charges have been proposed to be revised from existing.5.15 to No change has been proposed in tariff schedule DSHT A large no. of stakeholders in their written as well as oral submissions opposed the proposed tariff hike stating that last two tariff increase was quite steep and third tariff revision in a span of less than two year will put undue burden. The Commission while determining the tariff has suitably considered the views of the stakeholders Discoms have proposed increase in number of slabs with increase in tariff for the slab of higher as a dis-incentive for high energy. Considering the above, the Commission agrees for introduction of new slab for consumers having more than 500 s However, the Commission has noted that for above 500 s, the Discoms have proposed an increase of 85 paisa, which is an increase of approximately 17% over existing tariff of Looking to the fact that no revision has been proposed for other slabs of domestic category, 17% increase in single slab appears to be on higher side. Further, in the present telescopic tariff the slabs are closely knit and the Commission feels that there should not be a major tariff difference between two slabs. Accordingly, for FY , the Commission has considered the energy charges of for consumer having above 500 s For consumers having above 500 s, the fixed charges have been proposed to be increased from existing. 210connection to. 225connection. The Commission accepts the same The Existing, proposed tariff and that approved by the Commission is given in the following tables: 93

4 Table: 61-Domestic Category Existing and Proposed tariff for FY Particulars EXISTING TARIFF Particulars PROPOSED TARIFF Category Energy Charges Category Energy Charges Domestic EC Subsidy indicate d to be received from GoR Effectiv e EC after subsidy Domestic EC Subsidy indicate d to be received from GoR Effectiv e EC after subsidy LT-Domestic ( LT-1) LT-Domestic ( LT-1) B P L* B P L* upto first 50 s connectionmont h (effective FC 50 connection after subsidy of. 30connection ) upto first 50 s connectionmont h (effective FC 50 connection after subsidy of. 30connection ) Small Domestic ( up to 50 s)# Small Domestic ( up to 50 s) up to 50smont h connection up to 50smont h connection General Domestic-1 ( above 50 s) General Domestic-1 ( above 50 s) (i) For upto first 50 s connection (i) For upto first 50 s connection (ii) For above 50 s and upto 150 s connection (ii) For above 50 s and upto 150 s connection General Domestic-2 ( above 150 s and up to 300s ) (i)for upto first 50 s connection General Domestic-2 ( above 150 s and up to 300s ) (i)for upto first 50 s connection (ii)for above 50 s 4.65 (ii)for above 50 s

5 and upto 150 s and upto 150 s (iii)for above 150 s and upto 300 s 4.85 (iii)for above 150 s and upto 300 s 4.85 General Domestic-3 ( above 300 s and up to 500 s ) General Domestic-3 ( above 300 s and up to 500 s ) (i)for upto first 50 s 3.00 (i)for upto first 50 s 3.00 (ii)for above 50 s and upto 150 s (iii)for above 150 s and upto 300 s connection (ii)for above 50 s and upto 150 s (iii)for above 150 s and upto 300 s connection (iv)for above 300 s and upto 500 s 5.15 (iv)for above 300 s and upto 500 s 5.15 General Domestic-4 ( above 500 s ) (i)for upto first 50 s (ii)for above 50 s and upto 150 s connection General Domestic-4 ( above 500 s ) Proposed (i)for upto first 50 s (ii)for above 50 s and upto 150 s connection 95

6 (iii)for above 150 s and upto 300 s 4.85 (iii)for above 150 s and upto 300 s 4.85 (iv)for above 300 s 5.15 (iv)for above 300 s and upto 500 s 5.15 (v)for above 500 s 6.00 HT Domestic (HT-1) HT Domestic (HT-1) For contract demand over 50 KVA kva of Billing Demand For contract demand over 50 KVA kva of Billing Demand *applicable for BPL card holders only # No subsidy will be allowed for above 50 s during the respective on entire consumed s. Domestic upto first 50 s Table: 62-Domestic Category (LT-1 and HT-1) -Approved tariff for FY EC Subsidy indicated to be received from GoR 1.90 Domestic Category Effective EC after subsidy LT-Domestic ( LT-1) B P L* 0.85 Small Domestic ( up to 50 s)# 80 connection (effective FC 50 connection after subsidy of. 30connection) up to 50 s connection *Note: The BPL domestic tariff shall be exclusively applicable to individual consumer son and shall not be applicable to any institution. In case any BPL consumer has consumed more than 50 s in any billing cycle, the consumer will be charged as the applicable tariff of the respective slab under the LT-I domestic category for the additional s consumed. # Subsidy is admissible only if does not exceed 50 s in any. 96

7 General Domestic ( above 50 s) General Domestic-1 ( upto 150s) (i) For upto first 50 s (ii) For above 50 s and upto 150 s Energy Charges connection General Domestic-2 ( above 150 s and upto 300 s ) Energy Charges (i) For upto first 50 s 3.00 (ii)for above 50 s and upto 150 s connection (iii)for above 150 s and upto 300 s 4.85 General Domestic-3 ( above 300 and upto 500 s) (i) For upto first 50 s (ii)for above 50 s and upto 150 s (iii)for above 150 s and upto 300 s Energy Charges connection (iv)for above 300 s and upto 500 s 5.15 General Domestic-4 ( above 500 s) (i) For upto first 50 s (ii)for above 50 s and upto 150 s Energy Charges (iii) For above 150 s and upto 300 s (iv)for above 300 s and upto 500 s connection (v)for above 500 s 5.45 Note: As discussed in section 1 of this order, moksh dhams, cemeteries and grave yards shall be covered Domestic category. HT Domestic (HT-1) Energy Charges For contract demand over 50 kva kva of Billing Demand 97

8 The Discoms in their petitions have proposed to delete the words also upto 5 KW as appearing in the present applicability of domestic HT schedule (DSHT- 1) reproduced as under: Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Also upto 5 kw pumping load for water supply and load of maximum five shops shall be mitted under this tariff schedule Discoms stated that current provision restricts the consumers to use the pumping load not more than 5 KW whereas in the current scenario, where large group housing colonies are applying connection under this category, the actual requirement for pumping load may be higher than 5 KW The Commission has accepted the above proposal to mitigate the difficulty in respect of load for water pumping in residential colonies. Accordingly, after deletion of the above words, the applicability shall read as follows: Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Pumping load for water supply and load of maximum five shops shall also be mitted under this tariff schedule. Re-Categorization of moksh dhams, cemeteries and grave yards As discussed in section 2 of this order the moksh dhams, cemeteries and grave yards are re-categorized from Non Domestic category to Domestic category. Accordingly, the Commission directs the Discoms to make necessary changes in booklet Tariff for Supply of Electricity Non-Domestic Service (LT-2 & HT-2) : The Discoms in respect of consumers upto & above 5 kw of sanctioned connected load and having upto 500 s have not proposed any increase in energy and fixed charges respectively Introduction of new slab has been proposed by Discoms for consumers upto and above 5 kw of sanctioned connected load & having above 500 s The fixed charges for consumers upto 5 KW of sanctioned connected load and having above 500 s have been proposed at 98

9 . 250connection. The fixed charges for consumers above 5 KW of sanctioned connected load and having above 500 s have been proposed at.80 KW of SCL Energy charges for upto 500 s are proposed to remain same as approved in last year s tariff order. However for above 500 s the energy charges have been proposed to be revised from existing.6.25 to No change has been proposed in tariff schedule NDSHT Many stakeholders stated that the proposed tariff for NDS is beyond the limit of +20% of average cost of supply as stipulated in National Tariff policy and Regulations. The Commission while determining the tariff has kept in view the average cost of supply and realization from this category Discoms have proposed to increase the number of slabs with increase in tariff for the slab of higher as a dis-incentive for high energy. This would promote energy conservation. Considering the said position, the Commission agrees for introduction of a new slab for consumers having of more than 500 s However, the Commission has noted that for consumers having above 500 s, the Discoms have proposed an increase of 75 paisa, which is an increase of approximately 12% over existing tariff of The tariff of this category is already near the range of +-20% of average cost of supply. Accordingly, for FY , the Commission has considered a lower energy charges of for consumer having above 500 s as appropriate and the same stands approved. The fixed charges for this slab has been approved as proposed i.e. 250connection for NDS upto 5 KW and 80KW of SCL for NDS above 5 KW The proposed tariff and that approved by the Commission is being given in the following tables: Table: 63-Non-Domestic Category (LT-2 and HT-2) - Existing and Proposed tariff for FY EXISTING TARIFF PROPOSED TARIFF Non-Domestic Energy Charges Non-Domestic Energy Charges LT-NDS(LT-2) NDS up to 5 KW of SCL NDS up to 5 KW of SCL upto first 100 s connection upto first 100 s connection 99

10 NDS up to 5 kw of SCL-type 2 above 100 s and upto 200 s) NDS up to 5 kw of SCL-type 2 above 100 s and upto 200 s) upto first 100 s above 100 s and upto 200 Unit connection upto first 100 s above 100 s and upto 200 Unit connection NDS up to 5 kw of SCL-type 3 ( above 200 s) NDS up to 5 kw of SCL-type 3 ( above 200 s and upto 500 s) upto first 100 s.5.60 upto first 100 s.5.60 above 100 s and upto 200 Unit connection above 100 s and upto 200 Unit connection above above 200 s and upto 500 s.6.25 NDS up to 5 kw of SCL-type 3 ( above 200 s) NDS up to 5 kw of SCL-type 4 ( above 500 s) upto first 100 s.5.60 upto first 100 s.5.60 above 100 s and upto 200 Unit above connection above 100 s and upto 200 Unit above 200 and upto 500 s connection above 500 s.7.00 NDS above 5 KW of SCL NDS above 5 KW of SCL 100

11 upto first 100 s.5.60 upto first 100 s.5.60 above 100 s and upto 200 Unit KW of SCL above 100 s and upto 200 Unit KW of SCL above above 200 and upto 500 s.6.25 above 500 s KW of SCL HT-NDS (HT-2) For contract demand over 50 KVA HT-NDS (HT-2) For contract demand over 50 KVA All Units kva of Billing Demand All Units kva of Billing Demand 101

12 Table: 64-Non-Domestic Category (LT-2 and HT-2) Approved tariff for FY NDS up to 5 KW of Sanctioned Connected Load LT-NDS(LT-2) Type1 ( upto 100 s) Energy Charges upto first 100 s connection LT-NDS(LT-2) Type 2 above 100 s and upto 200 s) Energy Charges upto first 100 s above 100 s and upto connection LT-NDS(LT-2) Type 3 ( above 200 s and upto 500 s) Energy Charges upto first 100 s above 100 s and upto 200 above 200 upto connection LT-NDS(LT-2) Type 4 ( above 500 s) Energy Charges upto first 100 s above 100 s and upto 200 above 200 s and upto 500 s above connection 102

13 NDS above 5 KW of Sanctioned Connected Load NDS above 5 KW of SCL (LT-2) Energy Charges upto first 100 s above 100 s and upto 200 above 200 upto 500 s KW of SCL above 500 s KW of SCL HT-NDS (HT-2) For contract demand over 50 kva All s kva of Billing Demand Note: As discussed later in this order, LT Non-Domestic Consumer having aggregate sanctioned connected load above KW) 25 HP may opt for billing on the basis of demand and in that case fixed charges as applicable for NDSHT-2 category shall apply and other provisions relating to billing demand and excess demand surcharge etc. as applicable for NDSHT-2 consumers shall also apply. However, if the demand exceeds 50 KVA the consumer has to shift to HT voltage as provision of Tariff and Supply Code Regulations Agriculture Supply (LT-4) Discoms in their petitions have stated that the Agriculture tariff approved by the Commission is far less than the average cost of supply. Therefore the Discoms have proposed the increase in energy charges to gradually bring the tariff for agriculture consumers towards average cost of supply Discoms have proposed to increase the energy charges of both the metered and un-metered agricultural consumers which has been summarized in the table after the following paras For metered consumers the Discoms have proposed to increase the energy charges from to for general consumers getting supply in block hours and from to for consumers getting supply more than block hours For flat rate consumers the Discoms have proposed to increase energy charges from. 285 HP to. 470 HP for general consumers 103

14 getting supply in block hours and from. 430 HP to 600 HP for consumers getting supply more than block hours No changes have been proposed in fixed charges of Agriculture metered and flat rate category and the Commission has accepted the same As submission of Discoms the Government of Rajasthan would be providing subsidy support for both metered and un-metered agriculture consumers. Discoms have submitted that the subsidy would be increased from the existing to for general metered consumers getting supply in block hours whereas for the consumers getting supply more than block hours, the subsidy would increase from to In case of general Flat Rate consumers getting supply in block hours, the Govt. subsidy would be increased from existing. 200HP to. 385HP, whereas for other flat rate consumers getting supply more than block hours, the subsidy is proposed to be increased from. 200HP to. 370HP The existing and the proposed tariff for agriculture supply are summarized below: Table: 65-Agriculture Category (LT-4) Existing and Proposed tariff for FY Particulars EXISTING TARIFF PROPOSED TARIFF EC Subsidy indicated to be received from GoR Effective EC after subsidy Metered (AGMSLT-4) EC Subsidy indicated to be received from GoR Effectiv e EC after subsidy Metered (AGMSLT-4) (i) General (getting supply in block hours). 2.25un it HP Maximum 250consu mer(subsidy above 45Connection ) (i) General (getting supply in block hours). 3.93u nit u nit.15 HP Maximum 250cons u mer(subsidy above 45Connection ) (ii)all others notcovered under items (i) and getting supply HP Maximum 500 consumer(subsidy above 50Connection (ii)all others notcovere d under items (i) and u nit.30 HP Maximum 500 consumer(subsid y above 104

15 Particulars EXISTING TARIFF PROPOSED TARIFF more than block hours getting supply more than block hours 50Connection Flat unmetered (AGFRLT-4) Flat unmetered (AGFRLT-4) i)general (getting supply in block hours).285 HP.200 HP 85 HP.15 HP Maximum 250 consumer(subsidy above 15Connection ) i)general (getting supply in block hours).470 HP.385 HP 85 HP.15 HP Maximum 250 consumer(su bsidy above 15Connectio n ) (ii)all others not covered under items (i)above and getting more than block hour supply 430 HP 200 HP 230 HP.30 HP Maximum 500 consumer(subsidy above 20Connectio n ) (ii)all others not covered under items (i)above and getting more than block hour supply 600 HP 370 HP 230 HP.30 HP Maximum 500 consumer(su bsidy above 20Connectio n ) Tariff for agriculture consumers There were lot of suggestions from stakeholders against lower tariff for this category and their contention was that the provisions of Electricity Act, Tariff Policy and Tariff Regulations should be given due consideration as far as crosssubsidy is concerned As mentioned earlier, the tariff of this category has to progressively increase in a manner so as to bring down the cross subsidy as required under the National Tariff Policy as well as in Regulations of the Commission. In last two tariff orders, the tariff for this category has increased considerably to take it towards average cost of supply and to reduce the cross subsidy. A significant increase in tariff of this category is again inescapable and licensees have also proposed considerable increase in energy charges for consumers of this category along with corresponding increase in Government subsidy Stakeholders suggested that the tariff of flat rate agriculture consumers should be higher than the tariff of agriculture metered consumers, which would 105

16 incentivise them to shift to metered category. The Commission has noted that Discoms have on the contrary proposed a lower average increase (in centage terms) in the tariff of flat rate consumers (getting supply in block hours) than average increase for metered category (getting supply in block hours). The lower increase in flat rate tariff would result in higher crosssubsidy for flat rate consumers, which also goes contrary to principle of incentivizing consumers to shift to metered category. Considering the said position, the tariff increase for flat rate consumers (getting supply in block hours) is being approved at a level higher than proposed by Discoms Accordingly, the tariff determined by the Commission for this category is as under: Agriculture Supply Metered (AGMSLT-4) (i) General (getting supply in block hours) (ii)all others not covered under items (i) and getting supply more than block hours Table: 66-Agriculture Category (LT-4)-Approved Tariff for FY EC Flat unmetered (AGFRLT-4) Energy Charges (EC) Subsidy indicated to be received from Govt Effective EC after subsidy HP of SCL Maximum 250 consumer(subsidy above 45Connection ).30 HP of SCL Maximum. 500 consumer(subsidy above 50Connection ) (i)general (getting supply in block hours). 500 HP. 385 HP 115 HP.15 HP of SCL Maximum 250 consumer(subsidy above 15Connection ) (ii)all others not covered under items (i) above and getting more than block hour supply 600 HP 370 HP. 230 HP.30 HP of SCL Maximum 500 consumer(subsidy above 20Connection ) Applicability of on sanctioned connected load or actual connected load whichever is higher 106

17 Discoms in their petitions proposed that for Agriculture flat rate consumers, fixed charges be recovered on the basis of sanctioned connected load or actual connected load, whichever is higher, stating that same is mentioned for energy charges and not for fixed charges After the issue of last tariff order dt it came to the notice of the Commission that the Discoms while issuing tariff booklet inserted a similar provision in that and the Commission vide its order dt clarified that fixed charges for flat rate consumers would be charged on the basis of sanctioned connected load only. In view of the said clarification the proposal of the Discoms is not being considered by the Commission Other Proposals Tariff for Jaipur Metro Rail Corporation JVVNL in its petition has proposed that in the prevailing tariff schedule, there is no separate category for charging tariff for the Metro Rail services in Jaipur. Currently, Railways is being charged under Large Industrial Category (HT-5) and Metro Rail has the similar pattern as would be of Railways and shall also draw energy at the same voltage level. Therefore, JVVNL has proposed to keep the metro in the electric traction category and re-term the Electric Traction category as Electric Traction and Metro. The Commission accepts the categorization of Metro and accordingly the term Railway Traction Load appearing under applicability of Large Industrial Service shall be read as Metro and Railway Traction Load However, the Commission feels that the services of two oators are different as Railways carries both passengers as well as goods across the nation, whereas Metro is a Rapid Transit system in Jaipur. Though voltage level for both the consumers is same but their purpose is different. This view of the Commission is also supported by APTEL decision dt in the matter of Northern Railway (NR) VS Delhi Electricity Regulatory Commission (DERC) wherein the APTEL has also mitted preferential treatment to Delhi Metro Rail Corporation (DMRC).In other states like Haryana, Delhi and Uttar Pradesh the tariff for Metro Rail has been kept lower than the tariff for Railways The Commission noted that note (iv) appearing below schedule LPHT-5 in booklet Tariff for Supply of Electricity reads as under: Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after This rebate will be available for a 107

18 iod of five years from the date of electrification after which normal traction tariff shall be charged. Looking to above facts, the Commission finds it appropriate to also allow a rebate of 10% on energy charges of LPHT-5 for Metro Rail services in Rajasthan for a iod of five years from the date of electrification after which normal tariff shall be charged. Accordingly, the note (iv) shall be amended as under: Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after This rebate will be available for a iod of five years from the date of electrification after which normal traction tariff shall be charged. Similarly a rebate of 10% will be given on energy charges on energy consumed by Metro Rail services in Rajasthan for a iod of 5 Years from the date of electrification after which normal traction tariff shall be charged Metro Rail will be categorized under Large Industrial Category (HT-5) and all other provision applicable to Large Industrial category shall be applicable to Metro Rail It is also clarified that Non traction load of Metro shall be billed under respective categories as applicable to that load. Change in the Definition of Maximum Demand Discoms proposed to modify the existing definition of Maximum Demand as appearing in booklet Tariff for Supply of Electricity as under: Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive iod of 3015 minutes of maximum use during the Stakeholders have referred to the section 62 (3) of Electricity Act 2003 and objected that Discoms cannot opt for both 15 minutes and 30 minutes time iod for the same type of consumer. Discoms should be specific in their proposal i.e. either they choose 15 minutes or 30 minutes In reply to objectors queries, Discoms mentioned that the proposal for change in the definition of maximum demand is based on the available metering equipment wherever available and not for all industries. ABT meters has the features of recording 15 minutes block wise maximum demand and thus the same is logical and accordingly they have requested the Commission to add the recording iod of 15 minutes along with 30 minutes. 108

19 In reply to data gaps, the Discoms informed that maximum demand for 15 minutes block are there where ABT meters are installed and the same is applicable for open access consumer, whereas for other consumers block of 30 minute has been proposed. Commission s view: As regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004, the definition of Maximum demand is as follows: Maximum Demand shall mean the average kva delivered at the point of supply of a consumer during any consecutive iod of 30 or 15 minutes of maximum use during the, as may be specified by the licensee, with the approval of Commission Whereas, the existing definition given in the tariff booklet reads as under: Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive iod of 30 minutes of maximum use during the As RERC (Terms & Conditions for Open Access)(3rd Amendment) Regulations, 2004, the Commission specified the Open Access agreement for case of distribution system & for HT supply of which clause 9 of scheduling and clause 29 (2) of billing are as follows: 9. Scheduling: (ii)the day ahead schedule injection drawal shall be furnished each day, not later then AM, to State Load Despatch Center, Heerapura, for each 15 minute block starting from hrs. for the ensuing day; (iii)further, if it involves open access to inter state transmission system, open access customer shall cause his supplier to furnish day ahead schedule on 15 minute block basis at prescribed time to the Northern Regional Load Dispatch Center in accordance with the prescribed procedure with a copy to SLDC. 29. Billing (2)The Billing shall be made as finalized energy accounts issued by SLDC, based on various para-meters at 15 minutes interval, starting from 0.00 hours of the day, stored in ABT complaint meters and as specified by the Commission. 109

20 It may be mentioned that energy accounting & scheduling for Open Access consumers is for each 15 minutes time block as distinct from other consumers. In view of this, reckoning of maximum demand based on 15 minutes time block for open access consumers as clarified by the petitioners in their reply to data gap seems a reasonable proposition and is worth consideration. Considering that Commission as regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004 is empowered to specify the time iod for the purpose of maximum demand, the Commission accepts the proposal of the Discoms. Accordingly, Commission directs the Discoms to make required changes in booklet Tariff for Supply of Electricity. Voltage Rebate on Energy Charges Discoms requested to revise the applicability of voltage rebate for all categories of consumers. They stated that presently voltage rebate is on the basis of amount which includes fixed and energy charges. However looking to the huge expenses already incurred in respect of the development of infrastructure for providing supply to the consumer on higher voltages allowing voltage rebate on fixed charges is not appropriate. Accordingly they proposed that voltage rebate should be allowed only on the energy charges or s billed In view of the comments of the stakeholders as discussed in section 2 of this order, the Commission is not inclined to accept the said proposal of the Discoms in this regard. Demand based Billing Regarding demand based billing, some of the stakeholders have suggested that the demand based billing should be considered for all category of consumers. In response to that Discoms have stated that demand based billing for all consumers having sanctioned load above KW can be made applicable as the meters capable of reading demand are installed for such consumers The Commission in its last tariff order dt while giving option for demand based billing for LT Medium Industrial consumers also noted that it also wishes 110

21 to extend this facility in phased manner based on examination of metering status and feasibility in respect of LT consumer of other categories Though no proposal regarding demand based billing was received from Discoms, the Commission feels that it should move towards goal of demand based billing for all categories of consumers. However, due to metering constraints it may not be possible for the Commission to allow demand based billing to LT consumers with sanctioned connected load of upto kw Accordingly the Commission directs that LT consumers of Non Domestic category (NDSLT-2) and Bulk supply for Mixed load category (MLLT-7) having sanctioned connected load more than KW (25HP) may opt for billing on the basis of demand and in that case fixed charges as applicable for NDSHT- 2 & MLHT-4 category shall apply respectively and other provisions relating to billing demand and excess demand surcharge etc. as applicable for NDSHT- 2 & MLHT-4 consumers shall also apply. However, if the demand exceeds 50 KVA the consumer has to shift to HT voltage as provision of Tariff and Supply Code Regulations The Commission also wishes to extend this facility in phased manner based on examination of metering status and feasibility in respect of other consumer categories With shifting of consumers to demand based billing there also appears to be a need to rationalize methodology for checking connected load of the consumers, so as to avoid any undue harassment of LT consumers. The Discoms may review the existing provisions relating to this and if required furnish a separate proposal for amendment in Supply Code Regulations. 18. Approved tariff for FY In the light of discussion as above the approved tariff for FY for different categories is appended with this order, which indicates existing tariff as well as the approved tariff based on revision allowed by the Commission. 19. Revenue due to tariff revision Discoms are expected to generate additional revenue as given in the table below for a 12 iod due to revision of tariff allowed by the Commission by this order. This does not account for implication of any 111

22 incentivesurcharge or rebates, whose implication may be same as existing. Revenue has been calculated by the Commission at the tariff determined by it. If the State Govt. provides subsidy for any category of consumers in advance in the manner as specified in RERC (Terms & Conditions of Tariff) Regulations, 2009, the Discoms may apply the subsidised rate to that category Discom wise revenue at existing and revised tariff as approved by the Commission are as follows: Table: 67- : Jaipur Discom- Revenue at Existing & Revised Tariff as Approved by the Commission for FY (. crore) Consumer Categories Revenue at Existing Tariff Revenue at Revised Tariff Increase Allowed Domestic 2,087 2,088 2 Non-Domestic 1,262 1,271 8 Public Street Light Agriculture (Metered) 1,103 1, Agriculture (Flat) Small Industry Medium Industry Large Industry 2,427 2,427 - Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total 8,354 9, Other Income Grand Total , Table: 68- : Ajmer Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY (. crore) Revenue at Revenue at Increase Consumer Categories Existing Tariff Revised Tariff Allowed Domestic 1,553 1,554 1 Non-Domestic Public Street Light Agriculture (Metered) 726 1, Agriculture (Flat) Small Industry Medium Industry

23 Large Industry 1,614 1,614 - Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total 5,692 6, Other Income Grand Total , Table: 69-: Jodhpur Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY (. crore) Consumer Categories Revenue at Existing Tariff Revenue at Revised Tariff Increase Allowed Domestic 1,464 1,465 1 Non-Domestic Public Street Light Agriculture (Metered) 1,315 2, Agriculture (Flat) Small Industry Medium Industry Large Industry Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total 5,481 6,604 1,123 Other Income Grand Total ,643 1, Cross Subsidy As regulation 126 of RERC (Terms and Conditions of tariff) Regulations, 2009, the average cost of supply and realization from a category of consumers, shall form the basis of estimating the extent of cross subsidy and determination of tariff, for that consumer category Regulation 126 of RERC (Terms & Condition of Tariff) Regulations, read with National Tariff Policy makes it evident that average cost of supply has to be the benchmark in assessing cross-subsidy from any consumer category. The 113

24 National Tariff Policy at Para states that SERC shall notify a road map with a target that tariff is within + 20% of average cost of supply. The Commission has also specified in its Tariff Regulations that the Commission shall endeavour to determine the tariff in such a manner that it progressively reflects the average cost of supply and the extent of cross subsidy to any consumer category is within maximum range of + 20% of average cost of supply by the year The last tariff revision in the year 2012 was virtually the second revision after National Tariff Policy and considering the historical status of huge variation in category wise tariff, bringing the cross subsidy within the + 20% range in just two revisions was not feasible. The phasing out of subsidy has to be done through successive tariff revisions Average cost of supply for the three Discoms as ARR and sales considered by the Commission, earlier in this order is as under: Table: 70 - Average Cost of Supply JVVNL AVVNL JdVVNL Rajasthan Net ARR (. In crore) 10,003 7,382 7,861 25,247 Sales (MU) 17,173 11,995 13,150 42,318 COS (.Unit) The cross subsidy across consumer categories at the revised tariff rate for the three Discoms for FY based on average cost of supply is provided in the table below: Table: 71 - Cross subsidy at revised tariff Cross subsidy JVVNL AVVNL JdVVNL Rajasthan Domestic -7.18% -9.88% -6.97% -7.70% Non-Domestic 21.50% 15.45% 16.14% 18.48% Public Street Light -4.37% -8.13% % -8.15% Agriculture (Metered) % % % % Agriculture (Flat) % % % % Small Industry -0.82% -4.61% -3.04% -2.28% Medium Industry 3.59% -4.93% -0.67% -0.16% Large Industry 0.50% -0.03% 13.92% 2.08% Public Water Works (S) 2.24% -4.33% -4.81% -2.56% Public Water Works (M) % % % % 114

25 Public Water Works (L) -0.30% -7.07% -5.63% -4.53% Mixed Load -5.30% -1.53% -3.22% -3.13% Electric Traction -4.44% 21. Revenue Surplus Deficit at revised Tariff Although the additional revenue on account of tariff revision works out to crore for all Discoms on an yearly basis, but since tariff revision approved by the Commission would be effective for a lesser iod, the additional revenue on account of tariff revision would not be available for the full year and works out to be approximately. 705 crore for JVVNL,. 589 crore for AVVNL,. 936 crore for JdVVNL and crore for all Discoms. The position of deficit at revised tariff for the full year and remaining iod of FY works out to be as under: Table: 72-: Revenue Deficit as approved by the Commission for FY JVVNL (. Crore) Particular At existing Tariff At revised Tariff for full year At revised Tariff for remaining part of the year Aggregate Revenue Requirement 10,003 10,003 10,003 Revenue generation (including other income) 8,430 9,276 9,135 Revenue Deficit 1, ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit Table: 73- : Revenue Deficit as approved by the Commission for FY (. Crore)-AVVNL Particular At existing Tariff At revised Tariff for full year At revised Tariff for remaining part of the year Aggregate Revenue Requirement 7,382 7,382 7,382 Revenue generation (including other income) 5,732 6,439 6,321 Revenue Deficit 1, ,

26 ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit 1, Table: 74- : Revenue Deficit as approved by the Commission for FY JdVVNL (. Crore) Particular At existing Tariff At revised Tariff for full year At revised Tariff for remaining part of the year Aggregate Revenue Requirement 7,861 7,861 7,861 Revenue generation (including other income) 5,520 6,643 6,456 Revenue Deficit 2,341 1,218 1,405 ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit 1, Discoms have not envisaged meeting the entire deficit for FY in the proposed tariff and have proposed that unfunded gap will be met through short term borrowings The revenue gap in past upto FY had increased substantially over the years primarily on account of long gap in tariff revision from the tariff order in December, 2004 to the next revision vide order dated for FY The Long gap about 6.5 years in tariff revision resulted in accumulated losses becoming too high. To avoid tariff shock to consumers, such gap would have to be wiped out through successive tariff adjustments over a iod of time. In view of this, the revenue gap, even after this tariff order, would exist, though the same has come down quite significantly after the three successive tariff increases, including the current one. The revenue gap as approved as this order could be met through borrowings. 116

27 21.4. Further, vigorous efforts would need to be made in areas like restricting short term power purchase, improving inventory management, recovery of arrears and addressing manpower related issues to improve quality of service. Overall T&D losses, though have come down over the years, but this would need to be sustained to reach the targeted loss level This tariff order shall remain in force till 31 st March 2014 or till the next tariff order of the Commission. All existing provisions which are not modified by this order, shall continue to be in force. Discoms shall publish salient features of tariff within one week in two daily newspas in Hindi and one in English, having large circulation in their respective areas of supply. This tariff order shall come into force only after such publication. Discoms shall revise the existing tariff structure in accordance with this order and publish in Hindi and English a booklet containing all details of tariff and its applicability for the benefit of consumers. It should be made available for sale to general public on a nominal price Copy of this order may be sent to petitioners, stakeholders, CEA and Govt. of Rajasthan. It shall be placed on the website of the Commission. (S.Dhawan) (S.K.Mittal) (D.C. Samant) Member Member Chairman 117