ORDER
OF
WEST BENGAL ELECTRICITY REGULATORY COMMISSION
FOR THE YEAR 2017 – 2018
IN
CASE NO: TP – 65 / 16 - 17
IN RE THE TARIFF APPLICATION OF THE WEST BENGAL STATE
ELECTRICITY DISTRIBUTION COMPANY LIMITED FOR THE
YEAR 2017 – 2018 COVERING FIFTH CONTROL PERIOD
UNDER SECTION 64(3)(a)
READ WITH SECTION 62(1) AND SECTION 62(3)
OF THE ELECTRICITY ACT, 2003
DATE: 04.07.2018
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 1
INTRODUCTION
West Bengal Electricity Regulatory Commission 2
1.1 The West Bengal Electricity Regulatory Commission (hereinafter referred to as
the “Commission”), a statutory body under the first proviso to section 82(1) of the
Electricity Act, 2003 (hereinafter referred to as the “Act”), has been authorized in
terms of the section 86 and section 62(1) of the Act to determine the tariff for a)
supply of electricity by a generating company to a distribution licensee, b)
transmission of electricity, c) wheeling of electricity and d) retail sale of electricity,
as the case may be, within the State of West Bengal.
1.2 The West Bengal State Electricity Distribution Company Limited (hereinafter
referred to as WBSEDCL), is deemed to be a licensee under the Electricity Act,
2003 in terms of fifth proviso to Section 14 of the Act wholly owned by the State
Government and is engaged in the business of distribution of electricity within the
area of supply of WBSEDCL in the State of West Bengal and the distribution tariff
of WBSEDCL shall be determined by the Commission.
1.3 West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2011 has come into effect from 29th April, 2011. The said Tariff
Regulations, 2011 was further amended by notifying the West Bengal Electricity
Regulatory Commission (Terms and Conditions of Tariff) (Amendment)
Regulations, 2012 in the extra ordinary edition of The Kolkata Gazette dated 27th
August, 2012 and West Bengal Electricity Regulatory Commission (Terms and
Conditions of Tariff) (Amendment) Regulations, 2013 in the extra ordinary edition
of The Kolkata Gazette dated 30th
1.4 In terms of definition contained in regulation 1.2.1 (xxx) of the West Bengal
Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,
2011, as amended from time to time (hereinafter referred to as the ‘Tariff
July, 2013.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 3
Regulations’), each control period after third control period shall be normally for a
period of five ensuing years or such other period of number of ensuing years as
may be decided by the Commission from time to time. The Commission vide his
order dated 04.05.2016 in Case No. SM-13/16-17 decided that the fifth control
period shall also be consisting of three ensuing years for the period from 2017 –
2018 to 2019 – 2020. But, after careful consideration of all relevant factors, vide
its order dated 14.12.2016 in Case No. SM-15/16-17 decided that the fifth control
period shall be for one year and consist of 2017 – 2018 only and vide its order
dated 14.12.2016 in file no B-11/20 decided that the last date for filing of tariff
petition for the fifth control period shall be 31.12.2016. WBSEDCL accordingly
submitted the petition for determination of tariff for the fifth control period
consisting of the year 2017 - 2018 on 22nd
1.5 On scrutiny of the application, it was observed that some documents required as
per regulation 2.5.2 and some Forms as prescribed in the different annexures as
per regulation 2.7.2 of the Tariff Regulations, were not submitted along with the
tariff application. Accordingly, WBSEDCL was requested to submit all those
documents/forms vide Commission’s letter no. WBERC/TP-65/16-17/2171 dated
27
December, 2016
th January, 2017. In reply, WBSEDCL submitted the required documents /
forms vide their letter No. REG/SERC/MYT 5th Control Period/479 dated 8th
1.6 The tariff application submitted on 22.12.2016 along with the information / data,
documents, forms submitted on 08.02.2017 as per Tariff Regulations (collectively
called as “tariff application”), were admitted by the Commission in case No.TP-
65/16-17 and communicated to WBSEDCL vide letter dated 20.02.2017 with the
direction to publish the gist of their tariff application, as approved by the
Commission, in the news papers and also in their website as per provisions of
the Tariff Regulations. The gist was, accordingly, published simultaneously on
February, 2017.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 4
24.02.2017 in the news papers - (i) ‘Business Line’ (English), (ii) ‘Ekdin’
(Bengali), (iii) ‘Dainik Statesman’ (Bengali) and (iv) ‘Jansatta’ (Hindi). The gist
along with the tariff application and additional information / data submitted vide
letter dated 08.02.2017 were also posted in the website of WBSEDCL. The
publication invited the attention of all interested parties, stake holders and the
members of the public to the application for determination of tariff of WBSEDCL
for the fifth control period and requested for submission of suggestions,
objections and comments, if any, on the tariff application to the Commission by
20.03.2017 at the latest. Opportunities were also afforded to all to inspect the
tariff application and to take copies thereof. It is noticed by the Commission that
the approved gist published in the news papers are not in consonance with the
with the stipulations contained in its letter dated 20.02.2017, nor does it satisfy
the requirement for publishing a notice containing a gist of the tariff application in
the daily newspapers “widely circulated in your area” as specified in regulation
2.7.3 of the Tariff Regulations. WBSEDCL was, therefore, directed to publish the
gist afresh in newspaper “widely circulated in your area” vide its letter dated
15.03.2017. WBSEDCL was directed to publish a notice extending the last date
of submission of objections / suggestions / comments against the tariff
application for the year 2017 – 2018 in those newspapers where the gist of the
tariff application was earlier published on 24.02.2017.
1.7 WBSEDCL accordingly published on 23.03.2017 a notice duly approved by the
Commission regarding extension of due date for submission of objections and
suggestions against the tariff application for the year 2017 – 2018 upto
27.03.2017. The notice regarding extension of date of submission was also
posted in the official website of WBSEDCL.
1.8 Objections to / comments on the aforementioned tariff petition of WBSEDCL for
the fifth control period were received by the Commission from the following
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 5
objectors within the stipulated time i.e., 27.03.2017 and the same have been
recorded in a summarized form in Chapter 3 of the instant order.
I. Rashmi Metaliks Limited,
II. Organization of Indian Engineering Industry,
III. Rohit Ferro-Tech Ltd,
IV. Ankit Metal and Power Limited,
V. Modern India Concast Limited,
VI. All Bengal Electricity Consumers’ Association (ABECA).
1.9 Commission, vide letter dated 28.03.2017 requested WBSEDCL to submit
additional clarifications in regard to sales forecast, power purchase, load-
generation balance and cost of outsourcing. In reply to Commission’s letter dated
28.03.2017, WBSEDCL submitted the required clarification, as asked for, vide
their letter dated 12.04.2017.
1.10 The Commission determines the tariff in accordance with the Electricity Act, 2003
and the Tariff Regulations framed thereunder and for this purpose, the
Commission has estimated the expenditure for 2016 – 2017 to arrive at the
estimated expenditure / cost under different heads for the years 2017 – 2018.
1.11 The estimation made for 2016 – 2017 by the Commission shall not be construed
by WBSEDCL as admission of at least such estimated amount in APR for 2016 –
2017. On the other hand, if in APR any deduction is made then as a conclusion
from such decision one shall not expect that the impact of such deduction is to be
continued in fifth control period as this will tantamount to imposing a penalty for
infinite nature or double penalty for the same inefficiency.
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 2
THE CASE OF WBSEDCL
West Bengal Electricity Regulatory Commission 6
2.1 The applicant WBSEDCL has submitted the application for determination of
Aggregate Revenue Requirement (ARR) and tariffs for the fifth control period
covering the year 2017 – 2018 under MYT framework in accordance with the
Tariff Regulations. The applicant has projected the ARR and the tariffs for 2017 –
2018 under the fifth control period and has prayed for allowing the same. The
applicant has also prayed for other dispensations which are mentioned in
subsequent paragraphs.
2.2 WBSEDCL has projected the ARR for the year 2017 – 2018 at Rs 1912327.00
lakh and the average cost of supply for 2017 – 2018 at 755.00 Paise / kWh. The
reasons for enhancement of tariff are stated as follows:
i) The Fuel Cost Adjustment (FCA), Monthly Fuel Cost Adjustment (MFCA)
and Monthly Variable Cost Adjustment (MVCA) payable to different
agencies for purchase of power has increased considerably.
ii) Due to increasing network, improved customer service facilities and price
index expenses towards Repair & Maintenance (R&M), outsourcing cost
due to maintenance and operation of new line and substations, spot
billing service, mobile maintenance service and zonal call centre, etc. has
increased.
iii) Increase of employee cost considering impact of 7th
iv) Probable enhancement of transmission charges payable to WBSETCL.
Pay Commission.
v) Increase in CTU charges due to implementation of Point of Connection
(POC) charge mechanism by CERC.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 7
2.3 It is also submitted by the applicant that the Commission may consider rise in
price index and consumer base, rise in power purchase cost and operating cost
resulting in increased cost of business.
2.4 It is stated by the applicant that while determining the ARR for the year 2017 –
2018 under the fifth control period, all infrastructure investment and power
procurement plan have been made assuming that all consumers under
WBSEDCL area will continue with power supply from WBSEDCL.
2.5 WBSEDCL has claimed that with fast growing / expanding distribution network,
additional consumers are being added with WBSEDCL system during the last
few years. It is stated that based on trend of increase in number of consumers in
last five years, consumers’ strength of WBSEDCL has been projected for the
year 2017 – 2018. The consumption of different categories of consumers during
the year 2017 – 2018 stated to have been estimated as per CAGR of
consumption during the last four years of the respective category of consumers
in the following manner:
� For LT & HT (Domestic, Commercial, Public Bodies) and LT (Industrial,
Irrigation, Public Lighting), CAGR of consumption during the last four years.
� For Commercial Plantations, Construction Power and Others, the
consumption during 2015 – 2016 has been considered.
� 1% annual increase during the year 2018 in HT Industrial category has been
considered due to introduction of various incentives.
2.6 Total sale of energy to own consumers of WBSEDCL has been projected as
25327.00 MU in the year 2017 – 2018. Distribution loss has been projected on
the normative basis at a level of 17.50% for 2017 – 2018.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 8
2.7 The applicant has also projected sale of energy to other licensees viz. CESC
Limited, Damodar Valley Corporation (DVC), The Durgapur Projects Limited
(DPL) and India Power Company Limited (formerly known as DPSC Limited)
(IPCL) during the year under the control period. The projection of sale of energy
to CESC Limited stated to have been made on the basis of drawal trend by
CESC Limited during the year 2016 – 2017 at a level of 10 MU for the year 2017
– 2018. The projection of sale of power to DVC has been projected to be 5 MU
during the year 2017 – 2018. The projection of sale of power to DPL as stated to
have been estimated at 20 MU for 2017 – 2018 as per drawal trend of DPL. The
sale of power to IPCL stated to have been estimated at 40 MU during the year
2017 – 2018 as per the drawal trend of IPCL during the year 2016 – 2017.
2.8 In terms of an agreement signed between the Govt. of West Bengal and Govt. of
Sikkim, the applicant has claimed that 20% of the sent out generation from
Rammam Hydel station Stage-II shall be supplied to Government of Sikkim
during the year 2017 – 2018. Accordingly, energy to be supplied to Government
of Sikkim has been estimated at 50 MU during the year 2017 – 2018.
2.9 WBSEDCL projected power purchase requirement based on the factor as
specified in 2.5 to 2.8 above and the cost of power purchase has been
considered based on the bill of respective generating stations during the month
of August, 2016 or the tariff petition/application where available or from the price
as projected by the generating companies.
2.10 WBSEDCL has submitted the projection of the energy balance that has been
arrived based on the estimated consumption, loss in distribution system of
WBSEDCL and loss in transmission system of WBSETCL at the normative level
as per Tariff Regulations. It is also submitted that the petitioner has to consider
the loss in central and state grid, as applicable.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 9
2.11 Sale of incidental surplus energy to the persons other than consumers and
licensees during 2017 – 2018 has been estimated by the applicant to be at a
level of 7102 MU. In view of the present poor and unpredictable condition of
power market, the price for such power sale has been considered at pool rate of
power purchase of respective year. No projection has, however, been made by
WBSEDCL towards banking of power through swap arrangement for the year
under the control period. WBSEDCL may have to swap out power during real
time operation during the year 2017 – 2018.
2.12 WBSEDCL has two main hydel power stations situated at Rammam and
Jaldhaka. Based on same PLF as in 2015 – 2016 with auxiliary consumption, the
generations for the year 2017 – 2018 from Rammam hydel power station and
Jaldhaka Stage – I hydel power station has been projected as 251.46 MU and
136.62 MU respectively.
2.13 WBSEDCL also has a pumped storage project at Purulia. WBSEDCL submitted
that, the Purulia Pumped Storage Project (PPSP) provides spinning reserve and
utilized as and when required to meet the system demand. Annual gross
generation at a level of 1055 MU has been projected for the year 2017 – 2018
according to the system requirement and considering optimum utilization of the
surplus power during the off peak hours.
2.14 WBSEDCL stated to have 10 (ten) small / micro hydel generating stations and
the generation from those generating stations are projected as generation from
renewable sources of energy. While projecting the generation from those
generating stations, it is stated that the generation from all such generating
stations have been estimated based on previous trend. The generation from the
small / micro power stations has been projected at 141.63 MU for the year 2017
– 2018.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 10
2.15 WBSEDCL is maintaining a diesel generating plant at Rudranagar in Sagar
Island which was earlier supplying power to the consumers at Sagar Island. The
load at Sagar Island is now being catered through grid. No generation has been
projected from the diesel generating station for the year under the control period.
2.16 WBSEDCL has installed grid connection solar PV plants (10 kW) each at 92
schools out of 100 Government and Government aided schools in different
districts in October, 2015. WBSEDCL has also commissioned 10 MW solar PV
project at Teesta canal bank in August, 2016. Some more solar PV projects are
in pipe line of either finalization or consideration for commission during the year
under control period. The annual generation from those new solar power stations
is project at a level of 75.250 MU considering 13% CuF.
2.17 WBSEDCL is continuing to purchase power from different agencies namely West
Bengal Power Development Corporation Ltd. (WBPDCL), The DPL, IPCL,
Damodar Valley Corporation (DVC), NTPC Ltd. (NTPC), NHPC Ltd (NHPC) and
PTC Ltd (PTC). It is also submitted that conventional power will also be
purchased directly from the new units of WBPDCL, NTPC, NHPC, DVC and
other generators and from electricity traders to meet the system demand of
WBSEDCL during the fifth control period. WBSEDCL will also purchase power
from different renewable and co-generation sources of energy during the ensuing
years under the fourth control period.
2.18 The planning of power purchase has been claimed by WBSEDCL to have been
done keeping in view the following aspects:
a) Estimated system demand for the ensuing years based on the projected load
growth.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 11
b) Maximum generation that may be available from the hydel power stations of
WBSEDCL.
c) Commitment to meet the peak system demand.
d) Requirement of pumping energy for optimum utilization of PPSP to meet the
system demand.
e) Effort to keep spinning reserve as per regulation to meet emergency situation
while sudden break down of any unit occurs.
WBSEDCL has claimed that besides purchasing power through grid system, they
will also purchase some quantum of power in radial mode from DVC at Asansol,
Burdwan and other areas, from DPL (at 33 KV & 11 KV) in and around Durgapur
area and from DPSC (at 11 KV) at Asansol area, Govt. of Sikkim (at 11 KV) at
Rangpoo area and WBREDA (at 11 KV) at Frezerganj area for catering its own
consumers during the year under the fifth control period
2.19 It is stated by WBSEDCL that the net generation to be available from the existing
generating stations of WBPDCL have been computed based on the projection
received from WBPDCL. As per the projection of WBPDCL, the net energy to be
available from KTPS, BKTPS, BTPS, STPS, SgTPS (Units I & II) and SgTPS
(Units III & IV) is 5018.00 MU, 7164.00 MU, 1676.00 MU 3651.00 MU, 2409.00
MU and 3250 MU respectively.
2.20 As it is learnt by WBSEDCL that the COD of unit III of the SgTPS has been
achieved in July 2016 and COD of unit IV of SgTPS was expected in January
2017. The capacity charges and energy charges for all the existing generating
stations of WBPDCL for the year 2017 – 2018 have been estimated by
WBSEDCL considering the same as in August, 2016 including MFCA for the
respective generating station.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 12
2.21 WBSEDCL has projected the purchase of power from DPL at 132 kV, 33 kV and
11 kV during the year 2017 – 2018 considering the trend of drawal by them from
DPL during 2016 – 2017 and the cost of such power purchase has been
estimated as per existing rate along with MVCA claimed by DPL in the month of
August, 2016.
2.22 The applicant has submitted that any revision of tariff in respect of WBPDCL,
DPL and IPCL for the year 2017 – 2018 by the Commission have an impact in
power purchase prices projected by WBSEDCL and that may be considered
while determining the power purchase cost of WBSEDCL for the year under the
fifth control period.
2.23 WBSEDCL has planned to purchase power also from NTPC Limited, NHPC
Limited and Damodar Valley Corporation (DVC) besides purchase of power from
WBPDCL, DPL, CESC Ltd and IPCL. WBSEDCL shall also purchase power
from other generating stations on commissioning of those generating stations
during the year 2017 – 2018 to meet their load growth. The price of power
purchase is considered as per tariff applicable to the respective generating
companies, wherever available or from the price as projected by the generating
companies. The applicant submitted to consider selling price as may be allowed
by the CERC in the tariff order of NTPC Ltd., NHPC Ltd, DVC and other
generators for the respective years while passing tariff orders in respect of
WBSEDCL for the year 2017 – 2018 if the tariff order in respect of those
agencies are issued before the tariff order for WBSEDCL are passed by the
Commission. The applicant also submitted that the proposed power purchase
price from all thermal power stations are exclusive of impact arising out of FCA or
MFCA or MVCA (in case of radial power) and any hike of power purchase cost
due to hike in FCA, MVCA and MFCA may be allowed to be claimed from
consumers and licensees through MVCA.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 13
2.24 It is proposed that any hike in power purchase cost of WBSEDCL due to hike in
FCA, MVCA and MFCA of the generating stations be allowed to claim through
MVCA from the sale to own consumers and licensees in the State.
2.25 WBSEDCL has estimated own consumption at the offices and substations for the
year 2017 – 2018 at 52 MU. WBSEDCL have projected 3350 MU to be procured
through purchase of short term power generally in the months of April and March
in order to bridge the gap between supply of power and system demand which
usually occurs during those months. WBSEDCL submitted that in order to fulfill
the Solar and Non-Solar RPO, the projection of short term purchase has been
estimated at 138 MU and 266 MU respectively during the year 2017 – 2018.
WBSEDCL also stated that in the event of sale price of surplus power in the
power market becoming not cost effective, the surplus power is being banked
through swap management for utilization of this surplus power effectively to
contain the idle capacity charge as well as to maintain grid discipline. The actual
banking of power under swap arrangement will be considered during FPPCA
application for 2017 – 2018.
2.26 WBSEDCL has also projected purchase of power from different new
conventional and non-conventional power plants during the year 2017 – 2018. As
per projection, the power purchase from Dagachhu HEP and Assam Power
under new conventional power plant is 360 MU and 3.50 MU respectively.
Similarly, WBSEDCL plans to purchase solar power from SECI and VGF scheme
or other such schemes of Government of India to fulfil its RPO. WBSEDCL has
indicated its solar power requirement for RPO to the tune of 100 MW during the
year 2017 – 2018.
2.27 Considering the projected sent out generation from its own generating stations,
power purchase from different agencies and the projected sales, energy
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 14
consumption at own premises, WBSEDCL has projected the energy balance for
the year 2017 – 2018.
2.28 The applicant has projected Rs.1408931.00 lakh as power purchase cost for the
year 2017 – 2018. This power purchase cost includes the cost of purchase of
estimated quantum of infirm power from the units under stabilization.
2.29 WBSEDCL projected Rs. 66447.00 lakh for Central Transmission Utility (CTU)
charges for the year 2017 – 2018 for transmission of WBSEDCL’s share of
power from the central sector generating stations and other generators outside
the State through the transmission system of CTU. However, the charges paid to
the CTU in actual will be claimed in the APR for the respective year.
2.30 Transmission charges payable to WBSETCL for the energy required to be
transmitted by the petitioner through WBSETCL system has been projected as
Rs. 110606.00 lakh for the year 2017 – 2018. However, WBSEDCL has claimed
Rs. 2034.00 lakh as SLDC charges during the year 2017 – 2018. ERPC charges
for the year 2017 – 2018 have been projected at Rs. 385.00 lakh. The system
operation charges payable to POSOCO have been estimated by WBSEDCL at
Rs. 543.00 lakh for 2017 – 2018.
2.31 An amount of Rs. 151746.00 lakh has been estimated as employee-cost for the
year 2017 - 2018. It is submitted that due to demographic and geographic
considerations, WBSEDCL is to maintain minimum level of employees to provide
service to its consumers. In the backdrop of the growing consumer strength and
augmentation of the distribution infrastructure, WBSEDCL has planned to
augment its manpower strength during the year 2017 – 2018. The manpower
strength during the year 2017 – 2018 has been planned to be 16363.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 15
2.32 15% hike has been considered in salary and allowances due to pay revision in
line with the 7th Pay Commission during the year 2017 – 2018 with a
retrospective effect from 1st January, 2016. The applicant has considered a D.A
hike @ 4% for 2017 – 2018. Moreover, increase in pay in respect of normal
increment of employee-cost has been considered @ 3% on the basic and grade
pay during the year 2017 – 2018. Other employee expenses are projected in
proportion to the manpower strength. WBSEDCL has further claimed that
terminal benefits are calculated based on the actuarial valuation of pension,
gratuity and leave encashment benefits. As per actuarial valuation made in 2016,
the projected pension and gratuity liability increased at a CAGR of 3.23%
assuming future salary inflation rate of 6% per annum. Hence, growth rate of
3.23% over the expenses for 2016 – 2017 has been considered to arrive at the
figures for 2017 – 2018. In order to accommodate impact of the 7th
2.33 The applicant has projected Operation and Maintenance (O&M) expenses
including Repair & Maintenance (R&M) cost for the year 2017 – 2018 at
Rs.135317.00 lakh, out of which, O&M expenses for generation is 6314.00 lakh
and for distribution function is 129003.00 lakh. WBSEDCL has claimed that
distribution assets and consumer strength of WBSEDCL are increasing rapidly
due to DDUGJY programme and other work such as R-APDRP, National
Cyclone Risk Mitigation Project, etc. at different parts of their operational area. In
order to deliver power with reasonable quality parameters and to reduce
instances of outages for the widely scattered large consumer base, the
expenditure of R & M works of WBSEDCL has been increased. The O&M
expenses during the year 2017 – 2018 have been estimated considering the
consumer growth and general inflation level.
Pay
Commission, an increase of 15% over the expenses in 2015 – 2016 has been
considered during 2016 – 2017.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 16
2.33.1 Operation and Maintenance (O&M) expenses for generation: WBSEDCL
submitted that in order to arrive at the O&M expenses for generation hydro plants
for the year 2017 – 2018, they have considered increase of 3 year CAGR on the
O&M expenses for the years 2014 – 2015 to 2016 – 2017 approved by the
Commission based on per MW basis as per the Tariff Regulations. For O&M for
Solar, WBSEDCL has considered Rs. 7 lakh per MW with escalation of 5.72% as
per CERC Renewable Energy tariff order dated 30th March, 2016. WBSEDCL
has estimated Rs. 4943.00 lakh on account of O&M for Hydro and Rs. 398.00
lakh for Solar.
2.33.2 Repair and Maintenance (R&M) expenses for distribution function: WBSEDCL
submitted that repair and maintenance expenses are a part of the core
distribution activities which reflect the expenditure incurred in respect of
maintenance of the distribution assets. WBSEDCL also submitted that the ratio of
R&M expenses to the O&M expenses for distribution is considered to be equal to
the 2015 – 2016 level, adjusted by a year-on-year growth from the 2014 – 2015.
Additional expenses are considered on account of IT implementation.
Accordingly, the projected figure for R&M expenses for the year 2017 – 2018 is
32831.00 lakh.
2.33.3 Administrative and General (A&G) expenses for distribution function: WBSEDCL
submitted that A&G expenses are a part of the core distribution activities which
reflect the expenditure associated with the necessary administrative support to
be arranged in order to ensure execution of the electricity distribution activities in
a smooth and uninterrupted manner. WBSEDCL also submitted that A&G
expenses are projected at the CAGR from 2012 – 2013 to 2015 – 2016 (i.e.,
6.5%) over the value of 2015 – 2016.. Additional expenses are considered on
account of IT implementation. Accordingly, the projected figure for A&G
expenses for the year 2017 – 2018 is 18348.00 lakh.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 17
2.33.4 WBSEDCL claimed an amount of Rs. 6123.00 lakh for 2017 – 2018 Rs. for
establishing and maintaining communication network set up for the complaint
management mechanism as per West Bengal Electricity Regulatory Commission
(Standard of Performance) Regulations, 2010 under the head Lease Rental.
2.33.5 WBSEDCL has claimed Rs. 351.00 lakh considering the present trend under the
head Complaint Management Mechanism to meet the expenses for – i) toll free
telephone for registering grievances at ZCC, ii) SMS charge for forwarding
grievance to Mobile Van, iii) rental charge for IVRS system, iv) separate
telephone facility at each customer care centre and v) antitheft toll free telephone
charges.
2.33.6 WBSEDCL has claimed Rs. 56790.00 lakh for the year 2017 – 2018 under the
fifth control period towards outsourcing cost.
2.33.7 WBSEDCL has claimed Rs. 1128.00 lakh towards insurance premium for the
year 2017 – 2018 considering an annual growth rate equal to the average of the
past 3-year and 4-year CAGR (i.e., 18%).
2.33.8 An amount of Rs. 14407.00 lakh has been estimated as expenses towards Rates
and Taxes. It is submitted that due to increase in number of consumers, the
number of office establishments, i.e., CCC, Divisional Manager Office have been
increased and the tax on the establishments has also been revised / increased
by civic bodies from time to time. The effect of such hike in rates and taxes has
been considered. The CAGR for rates and taxes was 37% during the year 2016 –
2017 over the year 2015 – 2016. Therefore, rates and taxes for 2017 – 2018 has
been increase at a CAGR of 37% over the year 2016 – 2017. It is further
submitted that Goods and Service Tax (GST) is likely to be implemented during
the year 2017 – 2018 as per the declaration of Government of India and hence
the proposed rate of GST on rates and taxes are not assessable at the moment.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 18
Impact, if any, of GST on rates and taxes shall be claimed at actuals in APR
petition for the respective year.
2.34 The applicant has claimed Rs. 2500.00 lakh towards bad debt for the year 2017
– 2018 for waiver of LPSC of Water Resource Development Department
(WRDD). However, bad and doubtful debts will be considered on actual basis in
the APR of respective year.
2.35 The applicant has stated that the capitalization of expenses for employees cost,
interest, administrative and other expenditure under the construction activities
are made for the year 2017 – 2018 following the existing policy of WBSEDCL.
2.36 WBSEDCL has projected Rs. 49096.00 lakh towards interest on borrowed
capital, Rs. 30600.00 lakh towards repayment of 1st
2.37 WBSEDCL has projected Rs. 11500.00 lakh for the year 2017 – 2018 under the
head interest on security deposit payable to the consumers.
installment of pension trust
bond, Rs. 10404.00 lakh towards interest on Pension Bonds and Rs. 2420.00
lakh towards other finance charges for the year 2017 – 2018. The applicant has
provided the computations showing actual amounts of interest chargeable in
revenue accounts in the Form-C to Annexure – 1 in Volume – IIB of their petition.
2.38 Cost of depreciation of assets of WBSEDCL which will be in service during the
years 2017 – 2018 stated to have been computed following depreciation
schedule as per Annexure – A in the Tariff Regulations and projected at Rs.
69810.00 lakh. The details of the calculation of depreciation have been given in
the Form – B to Annexure – 1 in Volume – IIB of their petition.
2.39 WBSEDCL has not claimed any amount under the head advance against
depreciation for 2017 – 2018.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 19
2.40 Regarding interest on working capital requirement, WBSEDCL has submitted
that, based on the directive of the Commission vide paragraph 8.11 of its tariff
order for 2008 – 2009, the average security deposit of permanent consumers
(excluding provision for security deposit) for the ensuing year 2017 – 2018 has
been considered for utilization as working capital for the respective year. The
gap, if any, between the normative working capital requirement and the average
security deposit, is required to be considered as working capital requirement for
the year and the interest thereon be claimed as per provisions of the Tariff
Regulations. WBSEDCL, however, has not claimed any amount as interest on
working capital during the year under the control period.
2.41 The applicant has not claimed any amount towards reserve for unforeseen
exigencies for the year 2017 – 2018 under the fifth control period. WBSEDCL
stated that Reserve for Unforeseen Exigencies will be considered if invested as
per direction of Commission in the APR of respective year.
2.42 The applicant has not considered any provision for net DSM charges payable for
the year 2017 – 2018. However, WBSEDCL prayed to consider DSM charges on
actual basis in the APR of respective year.
2.43 WBSEDCL has projected Rs. 201.00 lakh towards contingent expenses under
the head ‘other debits’ for the year 2017 – 2018. However, the expenses under
this head will be claimed at actuals in the APR of the respective year.
2.44 WBSEDCL has not considered any provision for special allocation for the year
2017 – 2018. However, special allocation will be considered on actual basis in
the APR of respective year.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 20
2.45 WBSEDCL has estimated the provision for Minimum Alternative Tax (MAT) for
the years 2017 – 2018 considering MAT rate 21.3416% which is the effective tax
rate for 2015 – 2016.
2.46 WBSEDCL has projected the return on equity at Rs. 44700.00 lakh for the year
2017 – 2018 under the control period stated to be considered on pre-tax basis on
the permitted returns @ 16.5% on the average equity base as per the Tariff
Regulations. It is submitted that no new equity addition for the year 2017 – 2018
has been considered.
2.47 WBSEDCL has proposed to release the balance amount of Rs. 22140.00 lakh
against the payable arrear arisen out of tariff order dated 30.12.2011 for new
units of WBPDCL. WBSEDCL has also requested to release an amount of Rs.
30091.26 lakh against the balance payable FCA of WBPDCL for the year 2012 –
2013 as per the order of the Commission dated 11.12.2014 in respect of
WBPDCL. WBSEDCL has referred a letter no. 148-PO/O/VS/55-30/2016 dated
5th September, 2016 issued by the Government of West Bengal wherein a grant
of Rs. 191607.00 lakh equivalent to outstanding loan and interest was extended
to WBPDCL, which may be considered for adjustment against the APR & FCA of
WBPDCL for the years 2013 – 2014 to 2015 – 2016. WBSEDCL has claimed a
sum of Rs. 76483.00 lakh towards carrying cost on the amount claim amount of
APR and FPPCA for the year 2013 – 2014 onwards considering the interest rate
as per SBI PLR of 14.05% as on 1st
2.48 Total expenditure of Rs.2097241.00 lakh has been computed by the applicant
and after excluding the revenue earned from other income, from bulk supply and
supply to Sikkim, expenses attributable to export and taking into account the
benefits passed on to the consumers, interest credit on depreciation and taking
into account the part release of regulatory assets and carrying cost as proposed
April, 2016.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 21
by them the annual revenue required from sale of energy to its consumers has
been estimated by the applicant at Rs. 1912327.00 lakh for 2017 – 2018.
2.49 With projected revenue requirement of Rs. 1912327.00 lakh from sale of
25327.00 MU of energy to its own consumers, the average cost of supply per unit
has been computed by the applicant at 755.00 paise / kWh for the year 2017 –
2018.
2.49.1 It is stated that CESC draws power occasionally from WBSEDCL to meet power
shortage when CESC fails to arrange such power from other sources. CESC was
asked to project their requirement of power during the year 2017 – 2018, but no
reply has been received from CESC. In such circumstances, the sale of power to
CESC has been estimated at 10 MU during the year 2017 – 2018. CESC has yet
to execute a fresh PPA with WBSEDCL for two part tariff. In view of above,
WBSEDCL proposed that CESC should intimate at least one/two month in
advance the demand for power from WBSEDCL and also proposed to supply
such scheduled power to CESC at single part tariff at an energy charge of Rs.
6.96 per kWh, average 33 KV industrial tariff under CESC area in 2016 – 2017.
However, for drawal of power more than the scheduled demand or sudden
requirement of power, WBSEDCL proposes 30% more than the above stated
energy charge of Rs. 6.96, i.e., Rs. 9.05 shall be payable by CESC.
2.49.2 WBSEDCL also proposed to sell power to DVC on single part tariff at a rate of
Rs. 6.96 per kWh and Rs. 9.05 per kWh following the methodology proposed for
consideration of sale rate for CESC, since no rate has been determined by the
Commission for sale to DVC by WBSEDCL. This is for the reason that no PPA
has been executed between WBSEDCL and DVC regarding two part tariff.
2.49.3 The applicant has also proposed to sale power to IPCL and DPL on single part
tariff basis at an energy rate of Rs. 5.40 per kWh and Rs. 4.63 per kWh
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 22
respectively with a further proposal of 30% higher tariff for the same reason as
that of CESC.
2.50 Changes proposed by WBSEDCL in their tariff for 2017 – 2018 are as follows.
(I) As a part of demand side management to encourage the 33 kV and 132
kV industrial consumers reduce their drawal of load in peak period and to
shift the load to off-peak period the following rebates shall be allowed:
a) a rebate equivalent to the difference of the following two will be
allowed,
i) Demand charge calculated as per regulation 4.3.6 of the
Tariff Regulations; and
ii) Demand charge computed based on the maximum
demand of normal \
b) Similarly for the above consumers keeping their maximum
demand during off-peak period within 150% of contract demand, a
rebate equivalent to the difference of the following two will also be
allowed:
period or maximum demand of peak
period or contract demand in case of off-peak period or
85% of contract demand whichever is higher, if those
industries keep their maximum demand during off-peak
period within 150% of contract demand.
i) Additional demand charge calculated as per regulation
4.7.2 of Tariff Regulations; and
ii) Demand charge computed .based on the methodology for
additional demand charge for the normal and peak period
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 23
will be as per regulation 4.7.2 of Tariff Regulations but
there will be no additional demand charge applicable for
off-peak period.
c) Similarly for the above consumers keeping their maximum
demand during off-peak period within 150% of contract demand, a
rebate equivalent to the difference of the following two will also be
allowed:
i) Load factor rebate computed as per the rates without
considering the additional kWh and KVA drawn during off-
peak period over contractual demand; and
ii) Load factor rebate computed as per the rate.
All the above rebates are effective from the month of April, 2017 subject
to the condition that payment is made within the due date.
(II) Treatment of Life line category consumers:
It has been observed that some of the domestic consumers of WBSEDCL
(with contract demand not more than 0.3 KW) consume more than 75
units during some quarters and consume less than 75 units for other
quarters. Accordingly whenever such a domestic consumer consumes
less than 75 units in a quarter, such consumer is billed at the tariff of Life
Line Consumer for that particular quarter. For other quarters wherein the
consumption of the domestic consumer exceeds 75 units, the consumer
is billed at the tariff of Domestic (Urban) or Domestic (Rural) category as
the case may be.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 24
WBSEDCL submits that the Commission has created such a provision of
Life Line Consumers in order to make electricity affordable to those poor,
consumers who don’t have the capability to afford electricity at the normal
rates. In this respect, WBSEDCL submits that increased electricity
consumption by this domestic consumer beyond 75 units / quarter should
debar them for availing life line category tariff for increased consumption
in its house hold.
WBSEDCL appeals before the Commission to consider such consumers
as either domestic (rural) or domestic (urban) and not as Life line for the
future years if the quarterly consumption for such domestic consumer
(having CD < 0.3 kW) exceeds 75 units taking average of energy
consumption of last 12 months.
(III) Minimum Charge of various consumer categories:
WBSEDCL submits that Minimum charges on consumers will guarantee a
certain amount of Revenue for part-recovery of fixed charges for
WBSEDCL. WBSEDCL has PPAs with generators based on demand of
the consumers to keep power supply uninterrupted. Thus, WBSEDCL has
to pay fixed cost to the generators even without drawal of power from the
generators due to lesser system demand.
In view of the above, WBSEDCL proposes Minimum charge for various
categories of consumers with revision in Minimum charge for categories
as shown in the Form 3.7 of Annexure-3 of Volume-IV.
WBSEDCL submits that the proposed Minimum charges should be
applicable as per regulation 4.13 of notification no.48/WBERC dated
25.04.2011, the same is reproduced below for ready reference:
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 25
“Minimum Charge shall be applicable when the sum of energy
charge and fixed charge including rebate/surcharge (except
rebate for timely payment) is less than the minimum charge for the
billing period"
(IV)
WBSEDCL submits that it collects meter rent from its consumers for
meters installed by WBSEDCL at its cost. Meter Rent paid by consumers
was last revised by WBERC via tariff order of 2010-11 dated 30.12.2011,
WBSEDCL proposes revision in Meter Rent as shown in the Form 3.7 of
Annexure-3 of Volume-IV.
Meter Rent:
(V)
WBSEDCL submits that other charges are borne by consumers due to
Meter testing charge and Disconnection / re-connection of supply at
consumer premises. Such charges are collected from the consumer by
WBSEDCL if the activity is undertaken due to consumers fault and not
otherwise.
Such charges borne by the consumers were last revised by WBERC via
tariff order of 2010-11 dated 30.12.2011. WBSEDCL proposes revision of
these charges as the cost borne by WBSEDCL for such Meter testing and
Disconnection / reconnection of supply has gone up considerably since
2011-12.
Other charges - Meter testing and Disconnection / Re-connection
Charges:
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 26
The existing and proposed Meter testing charge and Dis-connection / re-
connection of supply charges is shown in the Form 3.7 of Annexure-3 of
Volume-IV
(VI) In the backdrop of reduced electricity consumption by the 33 kV and 132
kV industrial consumers of WBSEDCL, WBSEDCL proposed a scheme
for revenue enhancement through increased sale to 33 kV and 132 kV'
industrial consumers, the scheme is enclosed as Annexure 8 of Volume
5. The scheme may be continued till issuance of the tariff order for 2017-
18. Rates mentioned in this scheme may be considered for modification
for the year in accordance with the tariff order of 2017 – 2018.
(VII) Tariff for Military Engineering Services (MES) applicable for High and
Extra-high voltage has been proposed to be applicable for LV&MV
consumer (50 KVA and above but upto 125 KVA).
(VIII) Presently off-peak period means the time period from 11 pm to 6 am.
Considering demand position of WBSEDCL system, WBSEDCL proposes
to increase off-peak period for industrial consumers with supply of 33 kV
onwards as 11 pm to 8 am and normal period as 8 am to 5 pm for
consideration of Commission and shall be applicable after two months of
issue of tariff order.
(IX) The fixed charge/ demand charge in Rs/KVA/Month for consumers has
been proposed as shown in the Forms 3.2 & 3.3 of Annexure-3 of
Volume-IV. The demand charge shall be applicable to different categories
of consumers as per rates as shown in above tariff schedule on the basis
of recorded demand as specified in regulation 4.3.3 of the Tariff
Regulations subject to the conditions specified in the Tariff Regulations.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 27
When a new consumer gets connected to the system, the computation of
fixed charge or demand charge for that month shall be made pro-rata for
the number of (
(X) All other terms & conditions of tariff have been proposed to remain
unaltered and are provided in the Annexure 3 of Volume IV of the
Application.
days of supply in that particular month.
(XI) Other terms and conditions are proposed to be remained unaltered.
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER - 3
OBJECTIONS AND SUGGESTIONS
West Bengal Electricity Regulatory Commission 28
3.1 Suggestions, objections and comments on the tariff application of WBSEDCL for
the fifth control period covering the year 2017 – 2018 have been received within
27.03.2017 i.e., the due date from the persons are mentioned in paragraph 1.10
of Chapter-1. The main points of the suggestions, objections and comments etc.
relevant to the instant tariff petition are summarized in the following paragraphs
in this chapter. The Commission’s views on the objections, comments etc. are
also recorded in this Chapter.
3.2 Modern India Con-Cast Limited have stated a number of issues which are
discussed below:
3.2.1 Operation and Maintenance Expenses: During 2015 – 2016, 2016 – 2017,
there is a large expansion of distribution network through implementation of
different Rural Projects related to distribution. Moreover there is large volume of
replacement of meters – namely from electro mechanical to hybrid / static etc.
and continuous replacement of meter involves a large increase in distribution
expenses. Since a large chunk of distribution system, commissioned under
various district project, and being almost new, maintenance expenses requires to
be reviewed and should not be allowed on normative basis. Otherwise it will not
be possible to arrest regular increase in tariff, while power purchase cost has
reached to an uncontrollable limit, particularly when market price of power is low.
The modality of fixing the normative value of O&M expenses in view of addition
of new assets requires to be reviewed. It often takes time to submit and issue of
order on APR.
The above point has been noted by the Commission and will be duly addressed
in the subsequent chapter.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 29
3.2.2 Employee expenses: The pay commission report is yet to be submitted. Since
the tariff petition is for 2017-2018, any impact on implementation of pay
commission shall be recovered separately. The reason is due to high tariff of
WBSEDCL compared to the most of the other States in India. High ATC Loss
should not be compensated in any manner through the increase of tariff. In fact
pay structure of the employee as well as the Board of Directors should be based
on performance in line with MNC and not in line with Government of Public sector
undertaking.
The above points have been noted by the Commission and will be taken care of
in the relevant portion of the tariff order. However, the employee cost will be
admitted as per the provision of Tariff Regulations, subject to prudence check by
the Commission.
3.2.3 Pension Fund: Pension fund appears to be a welfare scheme of the licensee.
WBSEDCL is not a Govt. institution. All the employees are not in the same
pension scheme. Any cost on account of pension should be incurred by the
licensee out of its profit and the same should not be a pass through.
The Commission has dealt with the issue suitably in subsequent chapter.
3.2.4 Outsourcing expenses: Outsourcing expense should have a prudence check.
Cost of outsourcing is 67% of direct employee cost which should be reduced.
Such expenses are being checked prudently as per the Tariff Regulations at the
time of determination of APR for the respective year.
3.2.5 Interest on working capital: Since the Bank rate is decreasing, the principles of
considering the rate of interest on working capital should be changed & it should
be at actual subject to truing up through APR.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 30
The rate of interest on working capital is being allowed by the Commission as per
the rate prevailing on 1st
3.2.6 Carrying costs: Normally any deficit in cash or working capital is managed
through grants/Govt. aid/borrowings from financial institution etc. Consumers
bear the burden of loan or borrowing from financial institution in terms of interest.
Allowing carrying cost in addition to interest burden will put extra burden to
consumers of all category. As such carrying cost should not be allowed, since
the licensee is a profit making utility, should absorb the carrying cost of its own.
April of the previous year for which the tariff order is
determined, subject to truing up through APR as per regulation 5.6.5 of the Tariff
Order.
The Commission has noted the contents.
3.2.7 Bad Debts: Consumers are already heavily burdened with high tariff. Any Bad
Debt should not be a pass through in the ARR. Any loss due to it should be
compensated by Govt. of West Bengal or adjusted with the regulatory Assets.
The Commission goes by the Tariff Regulations framed as per the Electricity Act,
2003 which only allows such amount of bad debts as actually has been written
off, subject to a ceiling of 0.5%.
3.2.8 Compensations paid by licensee: Compensation to outsiders, loss of obsolete
store materials, compensation of Power Trader should not be allowed, as the
same will be a reward to inefficiency.
The Commission does not allow the compensation amount as a pass through
element in tariff as per provisions of Tariff Regulations.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 31
3.2.9 Report on Power for All (PFA):
(i) WBSEDCL submitted report on Power for All to Govt. of West Bengal in
consultation with M/s Deloitte India Ltd. As such all relevant data should
be in line with this.
The projections are generally being made in the Tariff petition in
accordance with the Tariff Regulations. However, the Commission has
taken a note of it.
(ii) As per report of Power For All (PFA), energy input requirement is 34118
MU against energy sale volume of 25993 MU with total peak demand
6152 MW. With the vast network (Transmission) strengthening, at higher
voltage, transmission loss should be reduced & impact of the same, may
require less input.
While computing the transmission loss, the Commission follows the
norms stipulated in the Tariff Regulations.
(iii) In line with PFA, Employee Cost – with escalation @ 10% YOY,
considering CPI, AG cost escalation @ 6% should be considered @ 1%
of GFA.
The Commission has noted the comment.
(iv) Depreciation for new assets should be considered as 5.28% in line with
PFA.
While computing depreciation in the tariff order, the Commission follows
the provisions as laid down in the Tariff Regulations.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 32
3.2.10 Sale to other distribution licensees: As none of the other distribution licensee
has intimated WBSEDCL, their requirement, projection of sale to other Licensee
should be considered nil.
The Commission has noted the comment.
3.2.11 Power purchase cost: Power purchase cost should be computed based on
prevailing tariff, not based on tariff petition of ISG, POSOCO and CTU etc.
Requirement of Power as per PFA is 34118 MU. The average cost of power
purchase may be considered as 350 P/KWH less by 2% rebate. Accordingly
Power Purchase Cost for sale to consumers shall be Rs 11702 Cr.
The Commission does not find any valid logic in objector’s estimation of power
purchase cost for sale to consumers. The Commission determines power
purchase cost based on the provisions given in the Tariff Regulations and on its
decision felt to be the best.
3.2.12 Purchase of power from Renewable and co-generation sources: While
average power purchase cost is around Rs. 350 P/KWH, WBSEDCL is reluctant
to pay the cap price of Co-Gen power i.e. @ 334 P/KWH, thereby depriving this
green power producer & discouraging to inject the same in the grid. Tariff model,
built in the PPA for Co-gen power should be quashed & CERC model should be
implemented.
The above comments are related to RE Regulations and do not attract the Tariff
Regulations which is followed for preparation of tariff order. However,
Commission will give direction to the licensee to fulfill their RPO obligations.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 33
3.2.13 Power purchase from WBPDCL:
(i) R&M work of BTPS 5th
(ii) Generation from KTPS first 3 units appears to be uncertain due to penal
action taken by Green Tribunal. Generation from other 3 units need to be
maximized.
unit has been done & it should supply regularly the
rated capacity as the investment cost is very high. The available
generation from other units of BTPS i.e. 4X60 MW should confirm to
around 55% considering Renovation and Modernization work.
(iii) However, the performance of WBPDCL appears not in order in spite of a
lot of investment under R&M Programme. There should be more penal
measure, unless the generator is able to achieve a good performance as
required by the system. It is to be kept in mind, that a good performance
in the matter of available generation will reduce the net power purchase
cost. As such any bad performance should be reflected in the pay
structure of the employee as well the Board of director.
The Commission noted the comments. While determining the power purchase
cost of WBSEDCL, the capacity charge payable by WBSEDCL for each
generating station of WBPDCL is being considered based on the reduced
projected Plant Availability Factor.
3.2.14 Sale of surplus Power:
(i) As per PFA, Energy availability during FY 18 is 37723 MU and surplus
will be 3605 MU. Again peak demand is 6152 MW, against availability of
7029 MW i.e. a surplus of 877 MW. Any surplus of power / energy may
be traded in the market. As per CERC report average realization of sale
through Traders is Rs. 411 P/KWH. As such Power purchase cost shall
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 34
be considered as Rs. 12940 Cr. After 2% rebate that may be availed as
per PPA if payment is made within due date.
The entire expenditure and income of the licensee for a particular year is
being checked prudently at the time determination of APR for the said
year. Therefore, the comments of the objector regarding trading of excess
power are being dealt at the time of APR determination. Regarding power
purchase cost, the view of the Commission is already given at paragraph
3.2.11 above.
(ii) Profits, if any, from sale to persons other than own consumers shall be
deducted from Gross ARR. However, if sale price / market price is less
than pool power purchase cost, some alternative means for assured
income may be invested, so that burden due to loss of revenue for sale at
low price may be avoided.
The Commission takes care of the comments as per the provisions of the
Tariff Regulations while determining tariff order/APR.
(iii) As there appears to be a surplus power, except some incidental
requirement, requirement of power purchase from market should not be
considered through.
The Commission noted the contents.
3.2.15 Alternative means to dispose surplus power instead of Banking of Power :
(i) Banking of Power may be avoided as it involves cost due to open access
charges & losses, interest cost of energy purchased. It is better that
surplus power may be sold through trader, allowing open access to the
interested buyer. A model may be built up as here under. Some high
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 35
value consumer, who may have a variable demand, who may be captive
generator also or who intend to be group captive owner may opt to buy
such surplus power through trader at some concessional rate, if open
access is allowed under this model.
(ii) Trader should have PPA with a person who may be consumer of the
licensee.
(iii) Interested buyer shall be allowed short term open access with a provision
for ABT complaint meter for energy accounting and power to be sold on
schedule basis.
(iv) Buyer should draw power over and above Contract Demand.
(v) If it is an additional power, over and above contract demand then there
shall be no Cross Subsidy Surcharge (CSS). Otherwise CSS will be
applicable along with additional surcharge.
(vi) Price should be fixed in between night off peak power and average price
of power in the Power market.
(vii) This will enable WBSEDCL –
� to avoid Open Access Charges & Loss due to sale to person other than
own consumers and Licensees,
� the demand for Open access approval for import by consumers from a
source other than the licensee concerned,
� additional revenue on account of wheeling charge and
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 36
� backing down may be avoided and full utilization of generation
capacity.
The objector has sought for certain change in Tariff Regulations. It may be put on
record that the Tariff Regulations were finalized through previous publication.
Having received suggestions, objections and comments the Commission in
exercise of its delegated legislative power duly considered the matter in details
and framed such regulations and the regulations were notified in the Kolkata
Gazette. In tariff determination proceedings once the regulations are framed by
the Commission, there is no scope to review or change such statutory norms in
tariff determination proceedings. Accordingly, the comments for change in the
Tariff Regulations are not considered. Thus, such issue will not be dealt in
subsequent chapter further.
3.2.16 Reduction of distribution loss:
(i) Distribution Transformer failure in the district varies in the range of 4% to
10%. It should be brought down.
(ii) Reduction in ATC loss level, in districts particularly Birbhum, Beharampur
and Malda needs special attention. However, Technical loss can be
improved through religious implementation of distribution project, i.e.
DDUGJY, IPDS, RAPADRP & RGGVY. A lot of investment around Rs.
9056 Cr, up to financial year 2018-19, is under process. Entire
investment is funded through grants.
(iii) WBSEDCL should take initiative religiously to improve distribution loss
through Condition Monitoring for preventive maintenance, Transformer
Transaction Management System, Feeder Length Reduction, Feeder
Segregation, Use of Amorptious core DTR installation, Re-conductoring,
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 37
Installation of AB cable etc. Further commercial Loss to be reduced a lot.
Consumption analysis is required at Field level to identify loss area.
The Commission has already taken various steps with the licensees in
different forum for reduction of AT&C / Distribution losses. However,
necessary directions are being given to the licensees for energy audit /
loss audit.
3.2.17 Regarding proposal for increase in Fixed Cost:
(i) Consumers are paying charges effectively under 3 part tariff scheme i.e.
Demand Charge or fixed charge, energy charge & MVCA. A lot of
irregularities may be found out, if consumption pattern is religiously
analyzed for each of the consumers. This is because, the connected load
(CD) / declared capacity, in a large number of cases will reflect that those
are, not appropriate and commensurate with their consumption volume. It
is the general experience that almost all categories of consumers have
declared their contract demand, not commensurate with their
consumption. Majority of household consumers have suppressed
contract demand, thereby licensees fixed cost recovery is not
commensurate with their drawal petition of the consumers. If each of the
consumers is put under scanning it will be found that there is no need to
increase the fixed cost. It is the inefficiency and lack of initiative of the
management to set right the issue, considering it to be difficult. Rather
they want to find an easy solution, for loss of revenue in this regard, by
increasing tariff in the form of fixed cost. Hon’ble Commission may quash
the demand in increase in fixed cost. Moreover, charges of fixed cost of
house hold have been increased within a short span. It should not be
further increased rather leakage in this area should be arrested.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 38
The Commission has noted the contents and will give appropriate
directions to the licensee. However, the fixed charge / demand charge is
allowed as per provisions of the Tariff regulations.
(ii) Again some of the households have more than one meter which are
overlooked by the licensee. In turn the recovery of energy charge under
slab rate is low. A loss in this case, automatically put burden on energy
rate. Licensee should be directed to reduce loss under above cases.
The comments are noted.
(iii) As WBSEDCL have to off-take minimum drawal, even after backing down
of generation, in the event of low demand, subject to the technical limit of
the generating unit, minimum drawal of all consumers should be
guaranteed in terms of charges.
The comments are noted.
(iv) WBSEDCL has executed lot of PPA, considering a very optimistic
perspective planning. It was considered granted that there would be an
industrial revolution in West Bengal and a surge of demand.
Unfortunately, the revolution is yet to take place but the obligation of PPA
for drawal of power remain. This ill-considered planning of the then
management of WBSEDCL has not yet been highlighted. As such
consumer should not be burdened with increase in fixed cost to protect
the inefficiency.
The Commission has noted the comments. Commission will consider the
fixed cost of generating stations from which the power are being
purchased by WBSEDCL as per their PPA to the extent of sale of power
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 39
by WBSEDCL adjusted with normative T&D losses. Any incidental
surplus has been considered to be sold at average power purchase cost.
3.2.18 Regarding other Tariff Proposals:
(i) Reference to the report on Power for All, West Bengal. Table – 14, the
anticipated peak demand is 6152 MW while Peak availability including
Renewable is 7029 MW i.e. there may remain 877 MW surplus during
Peak Hours. Now WBSEDCL should rethink whether they would like to
sale surplus evening power at in the market depriving its own consumer
setting Peak hour tariff at high level. This is against natural justice. As
such to boost industrial sale, tariff for the peak hour of high valued
industrial consumer should be kept low at a reasonable level and to
compensate the loss of revenue tariff for normal period may be revised.
The comments are noted.
(ii) Any changes of existing rate / charges, terms and conditions as proposed
in the tariff petition shall not be allowed as the same shall be considered
through amendment of existing tariff regulation. The stake holders should
be given opportunity to put up their views/suggestions and objection.
The Commission has noted the comments.
(iii) There is a proposal for change TOD timing, through increase in off-peak
period, it does not indicates, how the loss of revenue due to increase in
off period will be compensated.
The Commission has not considered any change in TOD timing due to
non-submission of any loss benefit analysis by the licensee.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 40
(iv) Any loss in revenue due to implementation of rebate scheme on
additional Load Factor rebate, Maximum demand charge for 33 KV/132
KV industrial consumers, or in multiple licensee area shall not be a pass
through.
The Commission noted the contents and shall be dealt with at the time of
preparation of tariff.
(v) The Commission has introduced a new scheme through the notification
dated 8.02.2017 whereby the difference of the price between DVC and
WBSEDCL has been kept at 50 paise. Presently the price of DVC stands
at Rs. 4.30 per unit for 132 KV DVC consumers whereas the price for
WBSEDCL is Rs. 6.10 per unit for its 132 KV consumers. Hence, the
rebates have to be increased for load enhancement so that the difference
between DVC and WBSEDCL is kept not more than 50 paise per unit.
The Commission has noted the contents. .
3.2.19 Whatever cost has been incurred in terns of FCA, MFCA or MVCA during FY 16-
17, shall be considered for ARR calculation. Implication of Tariff revision of
ISGS/CTU etc. should be taken in account through FPPCA.
Commission has noted the comment and specific direction will be given in the
tariff order in this regard as per provisions of the Tariff Regulation.
3.2.20 Over and above, M/s Modern India Con-Cast Limited have made some additional
important points to note.
i) WBSEDCL fails to comply direction of the Hon’ble Commission as they
have not implemented Energy audit in its organization. Some penal
measure is required in terms of tariff.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 41
ii) Generation is PPSP for 2017-18 with PAF 98% has been considered in
the same level of 2015-16 i.e. 1055MU when PAF was 76.57%. It may
be noted that with PAF 90.78% generation was 1416 MU. As such
correction should made accordingly i.e. we can get around 400MU more
peak power from PPSP.
iii) WBSEDCL has not yet participated in UDAY scheme which is beneficial
to the Licensee and in turn consumer will also be benefitted.
iv) Cost of Backing down of generation and sale of surplus power in the
unregulated volatile market at an average rate of Rs 2.72 p/kWh indicates
poor and inefficient power purchase plan.
v) Increased R&M cost indicated poor maintenance plan and condition
monitoring.
vi) Any waiver of LPSC should not be a pass through a tariff.
vii) WBSEDCL may purchase power from market after having an exercise for
cost benefit analysis where there should be a net gain in the process.
viii) WBSEDCL realize Minimum Charges in terms of Fixed cost / Demand
charge. Though in the tariff petition, WBSEDCL, cleverly, has not given
any annexure of computation of fixed cost / Demand charge, the increase
in consumer base has largely increased. In the process of computation
for average billing rate (ABR), there should not any adjustment on
account of Rebate / Penalty etc. Average energy rate may be computed
after assured revenue income on account of Fixed cost / Demand charge.
Power purchase cost may also be computed without rebate / penalty.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 42
ix) Format 1.10 does not contain the contracted capacity/installed capacity.
Moreover there is no information about hour of operation and Backing
down of generation. They same should be incorporated for having a clear
view of operation and power procurement planning efficiency.
x) Similarly the formats do contain any information of category wise total
consumer, contract demand and the demand met. The same should be
incorporated. This will enable to have a check on the fixed cost / demand
charge that should have been realized.
The Commission has taken note of the above comments and shall deal with the
same, wherever required as per the Tariff Regulations, in the subsequent
chapter.
3.3 M/s Ankit Metal & Power Limited, M/s Rohit Ferro-Tech Limited, Organization of
Indian Engineering Industry and Rashmi Metaliks Limited have submitted their
printed objections with same contents as that of Modern India Con-Cast Limited
against the tariff proposal of WBSEDCL for the year 2017 – 2018. Since the
objections submitted by the above four stakeholders are same with the
objections submitted by M/s Modern India Con-Cast Limited and that they are
already dealt with as above, the objections of above four stakeholders are not
dealt here separately.
3.4 All Bengal Electricity Consumers’ Association (ABECA) has made the following
suggestions:
3.4.1 ABECA commented that if the tariff proposal of the WBSEDCL is allowed then
there will be a further tariff hike of 65.68 paise per unit including MVCA of 23
paise per unit. Besides this tariff hike both the W.B.P.D.C.L. and W.B.S.E.D.C.L.
off and on enhances tariff on the plea of MVCA / MFCA etc. The entire system is
nothing but to enhance the tariff which will affect 1.50 Crores of Electrical
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 43
Consumers of West Bengal and there will be a further inflation in the state and
prices of all goods and services will be increased. Small traders, small scale
industrial units and cultivation in Agriculture will be badly affected and will
virtually close down their activity. This cannot be let loose.
3.4.2 In the gist of Tariff Proposal the W.B.S.E.D.C.L. said that the reasons of increase
of tariff are (i) increase of power purchase cost; (ii) Increase of Transmission
charges; (iii) Increase of employee cost; (iv) Increase of interest on loan; (v) O. &
M. expenses increase; (vi) Release of Regulatory asset etc. ABECA is to state
that the reasons stated in the gist of tariff for 2017-18 are not tenable. The
reasons are as follows:
3.4.2.1 Increase of power purchase cost:
It may be stated here that the W.B.S.E.D.C.L. purchase the power from the
W.B.P.D.C.L. The W.B.S.E.D.C.L. submitted the increased tariff for 2017-18 to
the commission and as per proposal they demanded the increase of average
cost of supply at 9.88 paise per unit.
ABECA already submitted the objection on the enhanced tariff proposal. The
W.B.E.R.C, has not yet allowed the enhanced proposal of the W.B.P.D.C.L.
Moreover W.B.S.E.D.C.L. and the W.B.P.D.C.L. are the Government enterprise.
Previously there was one company i.e. W.B.S.E.B. Then there would be one tariff
for W.B.S.E.B. But due to the evil affect of 2003 Electricity Act for the break up of
W.B.S.E.B. into three Government companies, viz. (i) Generation Company (ii)
Transmission Company and (iii) Distribution Company. The enhancement of tariff
of these three companies imposed a burden of severe tariff hike collectively on
the shoulder of the ultimate consumers and thereby brings an inflationary
situation in West Bengal and the production of Agriculture and Small Scale
Industry will be hampered and in addition to this there will become another
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 44
increase of unemployment in the state. Hence we strongly object the tariff hike
proposal of the W.B.S.E.D.C.L. for 2017-18.
In this context, the Commission likes to mention that at the time of preparation of
tariff order of any licensee, the Commission allows expenditure based on the
provisions of the Tariff Regulations and after prudence check of the proposed
expenditure.
3.4.2.2 Increase of Transmission charges – The reason stated herein above at para
3.3.2.1 above holds goods here also.
The Commission’s views remain same as that of paragraph 3.3.2.1 above.
3.4.2.3 Increase of Labour cost - The imposition of fixed charge and fixed cost in the
Tariff is projected on the higher side. Already 6% growth rate of estimated
Energy Sale to its own consumer of W.B.S.E.D.C.L. is allowed by the
commission in the tariff order dated 28-10-2016 for 2016-17 and considering this
inflated rate of Energy Sale the commission allowed the Aggregate Revenue
Requirement of Rs. 1829944.36 Lakh in 2016-17 which includes Labour Cost
also. Hence a mere annual increment of the employees. Nothing more
enhancement on this
The Commission in the direction to W.B.S.E.D.C.L. in the tariff order dated 28-
10-2016 at page 50 para 4.9 (i) directed a detail breakup showing total
expenditure and employee strength against each level of all categories of
employees including the whole time directors of the Board. If any function of
other companies also then the allocation of cost among the companies shall be
shown separately and distinctly against each level." The direction of the
commission is to be complied within 31st March 2017.
item for which the enhancement of tariff hike is not
reasonable.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 45
From the direction of the Commission it is quite clear that the W.B.S.E.D.C.L. failed to provide the required information relating to employee cost. Hence the proposal of tariff hike on the plea of increase of employee cost is not tenable. As such we oppose the tariff hike of the W.B.S.E.D.C.L. for 2017-18.
The Commission has noted the comments and will be dealt with in subsequent
paragraphs
3.4.2.4 Increase in interest on Loan – In this respect it may be stated that the interest on
F.D. has reduced from 9% to 6% and interest on loan also has reduced from
14% to 10%. Moreover if any loan taken previously at a higher rate of interest,
now this can be switched off from higher rate to lower rate of interest loan. As
such the plea of higher rate of interest on loan for the tariff hike proposal for
2017-18 is not tenable. It is not reasonable ground. As such we oppose the tariff
hike proposal of the W.B.S.E.D.C.L. for 2017-18.
.
The Commission has noted the comments.
3.4.2.5 Release of Regulatory assets - The Commission has been releasing the amount
regularly. If in the past period tariff reduces 2 paise per unit and tariff did not
increase, then this plea cannot be a tenable logic for the enhancement of tariff
hike for 2017-18. As such we object the tariff hike proposal for 2017-18.
The Commission has noted the comments.
3.4.3 It appears from the tariff order of the WBERC dated 04-03-2015 for the year
2014-15 in respect ofW.B.S.E.D.C.L.at page 7 para 2.2 that the W.B.S.E.D.C.L.
was attempting to reduce the average cost of supply by about 2 paise per unit for
the year 2014-15 "Even after considering release of regulatory asset and special
appropriation having consequential affect of 26-44 paise per unit in the average
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 46
cost of supply for 2014-15. The reason for such reduction in average cost of
supply during 2014-15 are stated as follows:
i) Expected increase of internal efficiency of W.B.S.E.D.C.L. including in the
field of procurement of power supply to other licensees.
ii) Lower cost of generation for the power available from W.B.P.D.C.L.
It is further stated that such effort will continue for reduction of average cost of
supply for 2015-16 to 2016-17." Under the circumstances stated herein above
the increase of average cost of supply from 689.32 paise per unit in 2016-17 to
755.00 Paise per unit in 2017-18 is not reasonable and justified. As such we
strongly oppose the tariff hike proposal of the W.B.S.E.D.C.L. for 2017-18.
The Commission has noted the comments.
3.4.4 The W.B.E.R.C. in the tariff order dated 28-10-2016 in respect of tariff of the
W.B.S.E.D.C.L. for 2016-17 allowed the Revenue Recoverable amount of Rs.
1892795.51 Lakh for 2016-17 but in the tariff proposal for 2017-18 the
W.B.S.E.D.C.L. has claimed the Estimated Revenue at the proposed tariff of Rs.
20,97,241 Lakh which is Rs. 204445.50 Lakh more than the existing allowed
amount. We strongly oppose the claim of the W.B.S.E.D.C.L. on this head on the
grounds stated herein above in the foregoing paragraphs.
The Commission has noted the comments.
3.4.5 It appears from the tariff proposal of the W.B.S.E.D.C.L. for 2017-18 at page 11,
para 22 Table under the item of Normalize Return, the claim is Rs. 44700 Lakh
while on the same item head the learned commission allowed Rs. 37236.21 Lakh
in 2016-17. So this claim in 2017-18 on the same head increases to Rs. 7463.79
Lakh. This enhancement is not reasonable ground of tariff hike. It is not a
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 47
cost/expenditure. It is a kind of profit in the name of Return on Equity. Moreover
there is no impact of economic benefit to the consumers due to enhancement of
capital in the year under reference on the contrary the tariff will increase. Hence
the increased Return on Equity is not justified. We oppose this.
The Commission follows the provisions of the Tariff Regulations for determination
of tariff for any licensee. For WBSEDCL also, the provision of the Tariff
Regulations will be followed for computation of ROE.
3.4.6 On the Bad debt item Commission did not allow any amount in the year 2016-17
tariff of the W.B.S.E.D.C.L. But for the year 2017-18 the claim on the Bad debt is
Rs. 2,500 Lakh. This is not justified claim. This claim is not outside the reason of
tariff hike. This claim is not reasonable. The W.B.S.E.D.C.L. did not submit any
Court Litigation case for which they could not realize the approved tariff from the
consumer, the W.B.S.E.D.C.L. did not submit any document showing their steps
to realize the unrealized dues from the consumers. Accordingly, we are to say
that the claim of Bad debt at a flat rate taking advantage of a provision of the
terms and conditions of tariff Regulation 2011, the claim of Bad debt is not
justified and reasonable. As such we oppose the claim.
The Commission has noted the comments.
3.4.7 Under the head Depreciation the Learned Commission allowed Rs. 69042.00
Lakh in the year 2016-17 to the W.B.S.E.D.C.L. but in the tariff proposal the
W.B.S.E.D.C.L. has claimed Rs. 69,810.00 Lakh for the year 2017- 18 tariff
under the same head of Depreciation. This means the claim is Rs. 768 Lakh
more.
It is expected that the Depreciation will be either same or reduced. If the
Depreciation increases then there will be new installation in the company, the
benefit of it will go to the consumers in the form of reduced tariff and better
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 48
service. None of this is in favour W.B.S.E.D.C.L.'s consumers. The service
condition is bad and tariff is increasing. So the enhanced claim is not reasonable
and justified. So we strongly oppose this claim.
The Commission has noted the comments and shall follow the provisions as laid
down in the Tariff Regulations.
3.4.8 At para 4.25 of tariff order of the WBERC dated 28-10-2016 in respect of
W.B.S.E.D.C.L. for 2016-17 it is the direction of the commission to reduce the
cost of distribution Re. 1 per unit and reduction of technical loss for the cities 4%,
for unban 5% and for Rural 8%.
This indicates that the W.B.S.E.D.C.L. failed to meet the target. If it is achieved
then there will be no need of price hike.
The Commission has noted the comments.
3.4.9 While the tariff in West Bengal is much more than the other states of India and
while the other 4/5 states reduces the tariff 50% and N.T.P.C. reduces the tariff
so there is no justification of tariff hike. This should be reduced 50% if proper
scrutiny is made. Hence we oppose the tariff hike and demand 50% reduction of
tariff. The items on which the enhanced claim is proposed and the reason of
price hike and Revenue requirement for 2017-18 given in the gist of tariff are
quite different. So we strongly oppose the tariff hike proposal for 2017-18.
Further from the arguments stated here in the foregoing paragraphs it is quite
clear that there is no need of tariff hike of the W.B.S.E.D.C.L. for 2017-18. On the
contrary if the actual facts and figures is taken into consideration then the tariff
will be decreased. Hence we oppose the tariff hike proposal and the increased
Revenue Requirement proposal of the W.B.S.E.D.C.L. for the year 2017-18.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 49
Commission observes that ABECA did not submit any supporting document
against their arguments. From CERC notification dated 25.01.2016 (in Petition
No 15/SM/2015), dated 31.08.2017 (in Petition No 11/SM/2017) and dated
21.06.2018 (in Petition No 4/SM/2018) it may be observed that the Average
Power Purchase Cost (APPC) at national level is Rs. 3.40 /kWh for 2015-16 &
2016-17, Rs. 3.48/kWh for 2017-18 and Rs. 3.53/kWh for 2018-19, which
indicates the nation-wide increase in cost of power.
Further from consultation paper published by CERC vides Ref No L-
1/236/2018/CERC dated 24.05.2018 it may be observed that the coal price itself
has increased by 81.83% during 2009-10 to 2016-17, along with increase in
transportation cost of coal. Increase in major components of coal cost is
reproduced below:
Year 2009-10 2016-17 Change
Base Price (ROM) Rs/Tonne 560.00 760.00 35.71%Taxes and Duties Rs/Tonne 202.31 664.71 218.67%Coal Cost Rs/Tonne 847.31 1540.71 81.83%Coal Transportation Rs/Tonne 512.82 818.80 59.67%Taxes & duties on transportation Rs/Tonne 44.24 194.58 339.83%
The consultation paper further reveals that, in addition to the cost of coal, fixed
costs in Transmission and distribution sectors has also increased throughout the
nation which has ultimately increased the average cost of supply by 31.56%.
Thus the submission of reduction of tariff by 50% seems to be arbitrary.
3.4.10 There is no open hearing system now in the WBERC while other State
Commissions provided for open hearing and from the inception of the
commission there was open hearing in West Bengal. If the open hearing is taken
at the time of tariff determination then many facts and figures will appear which
will reduce the unjustified claim of the licensees and the tariff will be reduced
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 50
instead of increased and the consumers' interest will be protected. We urge upon
the Commission to start again public hearing at the time of Tariff determination.
The Commission has meticulously followed the provisions of section 62 and
section 64 of the Electricity Act 2003 while determining the tariff in question. Of
these two, section 64 ibid contains the procedure of determination of tariff, and a
bare reading of section 64, along with its sub sections clearly shows that while
issuing a tariff order under section 64(3)(a) ibid, the Commission is required only
to consider all the suggestions and objections received from the consumers,
stake holders etc. but is not required to hear them. The Commission is of its
considered opinion that under the Electricity Act, 2003, the legislators have
deliberately excluded any scope of hearing while determining tariff in terms of
section 62 read with section 64 of the Act.
It is to be noted that hearing has been specifically required in case the
Commission decides to reject a tariff application in terms of section 64(3)(b) ibid,
if in the opinion of the Commission, the application under section 64(1) is not in
accordance with either the provisions of the Electricity Act,2003, or the Rules, or
the Regulations made thereunder, or the provisions of any other law for the time
being in force. In other words, the Commission, even though empowered to
reject a tariff application, can reject the same only after granting an opportunity of
being heard to the applicant licensee or the generating company. Therefore,
section 64(3)(b) ibid limits the scope of hearing only to cases of outright rejection
of a tariff application. On the issue of hearing, the provision of section 64(3)(a) is
in clear and sharp contrast to the provisions of section 64(3)(b). So much so, that
it leaves one with no doubt that the exclusion of the requirement of hearing from
section 64(3)(a) is a deliberate exclusion, the requirement of hearing being
substituted by the requirement of consideration of all suggestions and objections
received from the public.
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 4
SALES, ENERGY BALANCE & VARIABLE COST
West Bengal Electricity Regulatory Commission 51
4.1 West Bengal State Electricity Distribution Company Limited (WBSEDCL) has been
entrusted with the responsibility to supply electricity to different categories of
consumers scattered throughout the State. The projected sales to different
consumer categories have been considered based on the growth trend of such
consumer categories. WBSEDCL also sells energy to other distribution licensees
in the State as per PPA entered between them. Moreover, as per existing
agreement between Government of West Bengal and Government of Sikkim,
WBSEDCL will have to make 20% of the sent out generation of Rammam Hydel
Station Stage-II to Government of Sikkim at sent-out cost.
4.2 A small part of the energy requirement for distribution and supply in its licensed
area comes from the hydro power stations under the ownership of WBSEDCL
while the balance energy requirement is sourced by way of purchase. The energy
generation at the own generating station and ex-bus energy available from these
stations after deduction of auxiliary consumption as per norms have been
considered in this order.
4.3 WBSEDCL has projected the amount of power purchase from the sources from
whom they are drawing power as per existing agreements. WBSEDCL has also
projected purchase of power from WBPDCL, NTPC, DVC, other generating
companies and also through electricity traders to meet their demand during the
year 2017 – 2018 under the fifth control period. WBSEDCL has also projected
purchase of power from different non-conventional and co-generation sources
during the year 2017 – 2018 under the fifth control period to meet their Renewable
Power Obligation (RPO) for the year.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 52
4.4 WBSEDCL has also proposed to sell the incidental surplus power available during
the off-peak and normal period after meeting the requirement of pumping energy of
PPSP or for banking of power through swap arrangement as per the real time
situation.
4.5 The energy requirement to supply consumers of WBSEDCL, supply to other
licensees including own consumption, estimation of energy amount from own
generation of WBSEDCL as well as estimation of purchase of energy, purchase
price and the amount from different sources are analyzed in the subsequent
paragraphs keeping in view the submissions of WBSEDCL, information from
different tariff orders, energy exchanges and relevant suggestions/ objections from
different stakeholders.
4.6 Energy sale to own consumers of WBSEDCL:
4.6.1 WBSEDCL submitted that the sale of energy to its own consumers is projected
based on the following conditions prevalent for different categories of
consumers:
a) For LT & HT Domestic, Commercial and Public bodies, and LT Industrial,
Irrigation and public lighting, CAGR of consumption during the last 4 years
of the respective categories has been considered.
b) For Commercial Plantations, Construction power and Others,
consumption in 2015 – 2016 has been considered for 2017 – 2018 as
such consumption is temporary in nature.
c) For HT Industrial, 1% increase over the consumption in 2015 – 2016, has
been projected considering various initiatives taken by WBSEDCL to
incentivize power consumption by HT Industries.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 53
d) For Traction, sale during the year 2017 – 2018 has been projected
considering possible change in stand of Indian Railways from existing
mode of operation.
4.6.2 The Commission finds it suitable to analyze the sales projection submitted by
WBSEDCL for each consumer category on the basis of their growth trend as
well as detailed clarifications/ submissions made by WBSEDCL. While
projecting the sale for the base year and ensuing year, the CAGR from 2012-13
to 2015-16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 have been considered to analyze the trend of sale along with category
specific information submitted by WBSEDCL. The following basic
methodologies have been considered as a general rule for projection:
a) Where the growth rates as reflected from CAGRs show a non-linear trend,
the CAGR of the entire duration i.e., 2012-13 to 2015-16 has been
considered;
b) Where growth rates show a linear increasing or decreasing trend the CAGR
of 2013-14 to 2015-16 has been considered;
c) Where the licensee provides specific reasons for considering a different
growth rate, that has been considered with due prudence;
d) Where there is insufficient data due to new consumer category or sales
volume is more or less steady or the loads are temporary in nature, the sale
volume of 2015-16 has been considered.
4.6.2.1 LV & MV Categories:
i. Labour Line:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Labour Line 24.740 19.44 10.19 2.87 2.00 2.00
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 54
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to -51%, -62% and -72%, which indicates a decreasing
rate. WBSEDCL has considered the projected sale for 2016-17 and
2017-18 as 2 MU in each year, which is 30% less than the sale value of
2015-16 considering conversion of single point connection to individual
domestic connections in some areas of WBSEDCL. Commission
considering the submission made by WBSEDCL, admits the sales
projected by WBSEDCL for 2016-17 and 2017-18 in this category.
ii. LT Life Line:
(MU)Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Life Line 420.606 423.24 426.00 428.18 432.00 436.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 0.6%, 0.6% and 0.5%, which indicates, though there is
a growth in this category but at reducing rate. WBSEDCL submitted that
they have considered the growth rate rounded up to 1% and projected the
sale volume of 2016-17 and 2017-18 as 432 MU and 436 MU
respectively. Commission considering the increase in consumer numbers
and contractual demand in this category, as well as rural electrification
activities of WBSEDCL admits the sales projected by WBSEDCL for
2016-17 and 2017-18 in this category.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 55
iii. LT Domestic (50 – 125 kVA):(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Domestic (50 -125 KVA) 0.00 0.00 0.00 7.31 8.00 9.00
Sales in this category starts from 2015-16 and WBSEDCL has considered
10% growth in this category thus the projected sale of 2016-17 and 2017-
18 after rounding up to nearest integer comes to 8 MU and 9 MU
respectively. Commission admits the sales projected by WBSEDCL for
2016-17 and 2017-18 in this category.
iv. LT Domestic (below 50 kVA):(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Domestic (below 50 kVA) 6757.814 6947.44 8003.05 8665.89 9391.00 10173.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 9%, 12% and 8%. However, WBSEDCL has projected
an annual growth rate of 8% in this category and the projected sale of
2016-17 and 2017-18 has been considered as 9391 MU and 10173 MU
respectively. Commission observed that this category comprises 95% of
LT Domestic sales, hence it is prudent to analyze the projection of this
category along with overall LT Domestic consumer’s sale. It is noted that
CAGR of overall LT Domestic sale during 2012-13 to 2015-16 as well as
the annual growth from 2014-15 to 2015-16 of overall LT Domestic sale is
8%. Thus, Commission admits the growth rate of 8% as considered by
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 56
WBSEDCL in this category and admits the sales projected by WBSEDCL
for 2016-17 and 2017-18 in this category.
v. LT Commercial (below 50 kVA):(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Commercial (below 50 KVA) 1954.51 1874.08 2062.50 2089.97 2132.00 2175.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 2%, 6% and 1%. WBSEDCL has considered the
projected sale of 2016-17 and 2017-18 as 2132 MU and 2175 MU
respectively with an annual growth of 2% rounded up to nearest integer in
this category. Commission observes that the trend of growth is not linear
and hence finds it suitable to consider the CAGR rate of entire previous
year i.e. 2% over the actual sales volume of 2015-16. Thus, Commission
admits the sales projected by WBSEDCL for 2016-17 and 2017-18 in this
category.
vi. LT Commercial (50 – 125 kVA):(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT (Commercial) (50-125 KVA) 95.60 117.49 128.47 131.93 144.00 158.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 11%, 6% and 3% which indicates the recent trends of
growth as a deceleration slope in this category. WBSEDCL has
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West Bengal Electricity Regulatory Commission 57
considered the projected sale of 2016-17 and 2017-18 as 144 MU and
158 MU respectively. WBSEDCL has considered 9% growth in this
category instead of 11% CAGR from 2012-13 to 2015-16 considering the
consumer numbers and connected load. . Commission observes that
though the CAGR trend show a steady decrease of growth rate in respect
of consumption, there is a growth in connected load by 10% during 2014-
15 to 2015-16, hence finds it suitable to admit the sales projected by
WBSEDCL for 2016-17 and 2017-18 in this category.
vii. LT Others (50 – 125 kVA):
(MU)
Category of Consumers 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Others (50 - 125 kVA) 10.50 32.43 46.84 39.79 44.00 48.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 56%, 11% and -15% which indicates a high increase in
2013-14 followed by a moderate increase in 2014-15 but the sale is
reduced during 2015-16. WBSEDCL has projected the sale of 2016-17
and 2017-18 as 44 MU and 48 MU respectively considering the CAGR of
2012-13 to 2015-16 rounded up to nearest integer in this category.
Considering the non-linear pattern of growth Commission finds it suitable
to admit the sales projected by WBSEDCL for 2016-17 and 2017-18 in
this category based on CAGR of the entire period (i.e. 2012-13 to 2015-
16).
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West Bengal Electricity Regulatory Commission 58
viii. Private Educational Institutions and Hospitals:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Private Educational Institutions andHospitals
0.00 0.43 0.57 0.93 0.93 0.93
WBSEDCL has considered the projected sale for 2016-17 and 2017-18 as
0.93 MU in each year which is same as in 2015-16 in this category.
Commission admits the same.
ix. LT Public Bodies:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Public Bodies 25.252 23.73 27.76 27.43 28.00 29.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 3%, 8% and -1% in this category. WBSEDCL has
considered the projected sale of 2016-17 and 2017-18 as 28 MU and 29
MU respectively with CAGR from 2012-13 to 2015-16 of 3% rounded up
to nearest integer in this category. Commission observes that the CAGR
rate shows a non linear growth pattern, hence finds it suitable to consider
CAGR of entire period which is 3%. Accordingly, Commission admits the
sales projected by WBSEDCL for 2016-17 and 2017-18 in this category.
x. Common Services for Industrial Estate:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Common services for Industrial Estate 0.009 0.01
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West Bengal Electricity Regulatory Commission 59
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
0.009 MU and 0.01 MU respectively in this category. Commission admits
the same.
xi. Commercial Plantation:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Commercial Plantation 0.000 1.60 1.94 1.66 2.00 2.00
Based on the sales volume of previous years, WBSEDCL has considered
the projected sale of 2016-17 and 2017-18 as 2 MU in each year which is
the actual consumption of 2015-16 rounded up to nearest integer in this
category. Commission admits the sales projected by WBSEDCL for 2016-
17 and 2017-18 in this category.
xii. Construction Power:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Construction Power 0.00 13.39 19.17 30.46 30.00 30.00
From the sales volume of previous years, CAGR from 2013-14 to 2015-16
and annual growth from 2014-15 to 2015-16 comes to 51% and 59%
respectively which indicates that sale in construction power has increased
significantly in 2015-16 than 2013-14 and 2014-15 in this category.
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
30 MU and 30 MU respectively which is same as the actual sale of 2015-
16 rounded to nearest integer in this category. Construction power being
difficult to project as well as considering high increase in 2015-16 in
respect to previous year Commission finds it prudent to keep the
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West Bengal Electricity Regulatory Commission 60
projection same as in 2015-16 and admits the sales projected by
WBSEDCL for 2016-17 and 2017-18 in this category.
xiii. Emergency supply:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Emergency supply 0.000 0.02 0.01 0.10 0.06 0.06
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
0.06 MU in each year which is less than the actual consumption of 2015-
16 in this category. Commission considering the actual sale of 2015-16
admits the projected sales of WBSEDCL for 2016-17 and 2017-18 as 0.10
MU for each year.
xiv. Short Term supply:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Short term supply 0.000 33.99 42.60 35.64 36.00 36.00
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
36 MU in each year which is the actual consumption of 2015-16 rounded
up to the nearest integer in this category. Considering the nature of
consumers in this category, Commission admits the sales projected by
WBSEDCL for 2016-17 and 2017-18 in this category.
xv. Temporary:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Temporary 0.000 12.89 10.02 2.28 0.00 0.00
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West Bengal Electricity Regulatory Commission 61
WBSEDCL did not project any sales in this category as they claim there is
no consumer. Commission admits the submission of WBSEDCL.
xvi. LT Industrial (below 50 kVA):(MU)
Category of Consumers 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Industrial (below 50 kVA) 927.91 910.44 942.19 942.62 952.000 962.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 0.5%, 2% and 0.05% respectively in this category.
WBSEDCL submitted that they have considered the CAGR of 2012-13 to
2015-16 rounded off to the nearest integer and accordingly consider a
growth rate of 1% in this category. Commission admits the sales projected
by WBSEDCL for 2016-17 and 2017-18 in this category.
xvii. LT Industrial (50 – 125 kVA):
(MU)
Category of Consumers 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Industrial (50 -125 KVA) 280.561 290.50 317.19 335.49 356.000 377.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 6%, 7% and 6% respectively in this category.
WBSEDCL has considered a growth of 6% on 2015-16 sale volume and
projected sale of 2016-17 and 2017-18 as 356 MU and 377 MU
respectively in this category. Commission after carefully observing the
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growth trends reflected in CAGR finds it suitable to admit the sales
projected by WBSEDCL for 2016-17 and 2017-18 in this category.
xviii. LT Agriculture:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Agriculture 1245.438 1182.88 1491.99 1524.19 1631.00 1745.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 7%, 14% and 2% respectively in this category.
WBSEDCL has considered a growth rate of 7% on 2015-16 sale volume
and projected sale of 2016-17 and 2017-18 as 1631 MU and 1745 MU
respectively in this category. Observing the growth trend as reflected from
CAGR show a non linear path, hence Commission finds it suitable to
consider the growth rate as per CAGR of entire 2012-13 to 2015-16 (i.e.
7%). Accordingly, Commission admits the sales projected by WBSEDCL
for 2016-17 and 2017-18 in this category.
xix. LT Public Water Works:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
LT Public Water Works 120.679 129.52 140.54 261.81 288.000 317.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 29%, 42% and 86% respectively. WBSEDCL has
considered the projected sale of 2016-17 and 2017-18 as 288 MU and
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West Bengal Electricity Regulatory Commission 63
317 MU respectively with a moderate growth of 10% in this category. On
further analysis, Commission observes that the growth in contractual
demand load shows overall CAGR from 2012-13 to 2015-16 of 14% and
annual growth for 2014-15 to 2015-16 as 0.30% in this category. Thus,
the huge increase in sales in the category seems to reflect the impact of
earlier projects undertaken by Government. Commission thus admits the
sales projected by WBSEDCL for 2016-17 and 2017-18 in this category.
xx. LT Street Lighting:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Street Lighting 175.990 177.27 187.45 235.74 259.000 285.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 10%, 15% and 25% respectively. WBSEDCL has
considered the projected sale of 2016-17 and 2017-18 as 259 MU and
285 MU respectively considering CAGR from 2012-13 to 2015-16 in this
category. Though the annual growth from 2014-15 to 2015-16 is 25%,
considering the initiative of LED intensified lighting schemes by the
Government to curb the peak demand, Commission finds it suitable to
consider CAGR rate of 10% and admits the sales projected by WBSEDCL
for 2016-17 and 2017-18 in this category.
4.6.2.2 HV & EHV Categories:
i. HT Domestic:
(MU)Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Domestic 21.148 24.05 23.87 16.22 15.00 14.00
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West Bengal Electricity Regulatory Commission 64
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to -8%, -18% and -32% respectively which indicates
reduction of sales in this category. WBSEDCL has considered the
projected sale of 2016-17 and 2017-18 as 15 MU and 14 MU respectively
considering reduction of -7% in this category, considering conversion of
single point connection to individual domestic connection. Commission
finds it suitable to admit the sales projected by WBSEDCL for 2016-17
and 2017-18 in this category.
ii. HT Commercial:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Commercial 810.40 821.93 893.59 893.06 822.00 851.00MES 102.00 105.00
Military Engineering Services (MES) has been considered as a separate
category since 2016-17, which was earlier a part of commercial category.
Hence for statistical analysis based on previous year’s sales, it is
considered to project the combined sales of HT commercial and MES for
the ensuing years and then segregate them. From the sales volume of
previous years, CAGR from 2012-13 to 2015-16, CAGR from 2013-14 to
2015-16 and annual growth from 2014-15 to 2015-16 comes to 3.29%,
4.24% and -0.06% respectively in this category. The combined sales of
HT commercial and MES have been projected by WBSEDCL for 2016-17
and 2017-18 as 924 MU and 956 MU respectively. Commission observes
that the growth rate as reflected from CAGR shows a non-linear growth
trend, thus considering the CAGR from 2012-13 to 2015-16 admits the
projected combined sales for 2016-17 and 2017-18 as 922 MU and 952
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West Bengal Electricity Regulatory Commission 65
MU respectively. Commission admits the projected sales to MES during
2016-17 and 2017-18. Now after deducting the projected sales of MES of
102 MU and 105 MU the admitted sales of HT commercial for 2016-17
and 2017-18 are determined as 820 MU and 847 MU respectively.
iii. HT Public Utility:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Public Utility 104.17 136.56 149.83 150.10 170.00 192.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, CAGR from 2013-14 to 2015-16 and annual growth from 2014-15 to
2015-16 comes to 13%, 5% and 0.2% respectively. WBSEDCL has
considered the projected sale of 2016-17 and 2017-18 as 170 MU and
192 MU respectively considering the CAGR from 2012-13 to 2015-16 in
this category. Commission observes that the growth rates reflected from
CAGRs show steady decreasing rates and there is hardly any increase
from 2014-15 to 2015-16. However, it is also observed that growth of
contractual demand has increased by 41% from 2014-15 to 2016-17
which indicates an increase in load in ensuing years. Thus, Commission
admits the sales projected by WBSEDCL for 2016-17 and 2017-18 in this
category.
iv. Sports Complex & Auditorium:
(MU)
Category of Consumers 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Sports Complex & Auditorium 3.47 3.58 3.68 3.76 4.00 4.00
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West Bengal Electricity Regulatory Commission 66
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to 3%, 3% and 2% respectively in this category. WBSEDCL has
considered the projected sale of 2016-17 and 2017-18 as 4 MU in each
year as per the actual consumption of 2015-16 rounded upto the nearest
integer in this category. Commission observes that the sales volume is
around 4 MU during last couple of years, hence finds it suitable to admit
the sales projected by WBSEDCL for 2016-17 and 2017-18 in this
category.
v. Construction power:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Construction power 33.213 23.53 31.61 14.51 15.00 15.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to -24%, -21% and -54% respectively in this category. WBSEDCL
has considered the projected sale of 2016-17 and 2017-18 as 15 MU in
each year which is the actual consumption of 2015-16 rounded upto the
nearest integer in this category. Commission observing the temporary
nature of the loads, admits the sales projected by WBSEDCL for 2016-17
and 2017-18 in this category.
vi. Private Educational Institutions:
(MU)Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Private EducationalInstitutions 23.40 25.50 32.70 32.81 37.00 41.00
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West Bengal Electricity Regulatory Commission 67
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to 12%, 13% and 0.34%. WBSEDCL has considered the projected
sale of 2016-17 and 2017-18 as 37 MU and 41 MU respectively
considering CAGR from 2012-13 to 2015-16 in this category. Commission
observes that the growth rates as reflected from CAGRs show a non-
linear trend, thus finds it suitable to consider growth rate as per CAGR of
2012-13 to 2015-16, hence admits the sales projected by WBSEDCL for
2016-17 and 2017-18 in this category.
vii. Commercial Plantation:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Commercial Plantation 3.41 4.07 4.15 3.12 3.00 3.00
From the sales volume of previous years, it is observed that sales in this
category shows a positive growth till 2014-15, but in 2015-16 sale has
been reduced to such extent that it is even below the sales recorded in
2012-13. WBSEDCL has considered the projected sale of 2016-17 and
2017-18 as 3 MU in each year, which is the actual consumption of 2015-
16 rounded upto the nearest integer in this category. Commission admits
the sales projected by WBSEDCL for 2016-17 and 2017-18 in this
category.
viii. Common Services for Industrial Estate:
(MU)Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Common Servicesfor Industrial Estate 0.10 0.00 0.00 0.00 0.00 0.00
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West Bengal Electricity Regulatory Commission 68
WBSEDCL did not project any sales in this category for 2016-17 and
2017-18. Commission admits the same.
ix. Emergency Supply:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Emergency Supply 1.08 1.49 1.19 3.38 3.00 3.00
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
3 MU and 3 MU respectively which is the actual consumption of 2015-16
rounded upto the nearest integer in this category. Commission
considering the temporary nature of the supply admits the sales projected
by WBSEDCL for 2016-17 and 2017-18 in this category.
x. Short Term supply:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Short Term supply 0.00 0.38 0.50 0.77 1.00 1.00
WBSEDCL has considered the projected sale of 2016-17 and 2017-18 as
1 MU in each year which is the actual consumption of 2015-16 rounded
upto the nearest integer in this category. Commission admits the
projected sales by WBSEDCL for 2016-17 and 2017-18 in this category.
xi. HT Industrial:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Industrial 6055.27 5885.69 5895.09 5483.52 5538.00 5593.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
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West Bengal Electricity Regulatory Commission 69
comes to -3%, -3% and -7% respectively which shows a decreasing trend
in this category. WBSEDCL has submitted that they have taken various
incentive schemes to HT industrial consumers and accordingly
considered 1% growth rate in this category and the projected sale of
2016-17 and 2017-18 as 5538 MU and 5593 MU respectively.
Commission considering the submissions of WBSEDCL admits the sales
projected by WBSEDCL for 2016-17 and 2017-18 in this category.
xii. HT Community Irrigation:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Community Irrigation 0.06 0.22 0.00 0.00 0.00 0.00
WBSEDCL did not project any sales in this category for 2016-17 and
2017-18. Commission admits the same.
xiii. HT Public Water Works:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
HT Public Water Works 145.52 158.83 182.04 184.74 200.00 217.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to 8%, 8% and 1% respectively. WBSEDCL has considered the
projected sale of 2016-17 and 2017-18 as 200 MU and 217 MU
respectively considering CAGR from 2012-13 to 2015-16 in this category.
Commission observes that the growth rates from CAGR shows marginal
growth during 2015-16, however it is also observed that the contractual
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West Bengal Electricity Regulatory Commission 70
demand from 2014-15 to 2015-16 shows a growth of 18%, which indicates
increase in loads in the ensuing years. Hence Commission finds it suitable
to consider the CAGR of 2012-13 to 2015-16 and accordingly admits the
sales projected by WBSEDCL for 2016-17 and 2017-18 in this category.
xiv. Cold Storage & Dairy:(MU)
Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Cold Storage & Dairy 347.98 379.74 383.09 378.57 389.00 400.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to 3%, -0.15% and -1% respectively. WBSEDCL has considered
the projected sale of 2016-17 and 2017-18 as 389 MU and 400 MU
respectively considering CAGR from 2012-13 to 2015-16 in this category.
Commission considering the CAGR of 2012-13 to 2015-16 along with
development projected by WBSEDCL in this sector admits the projected
sales of 400 MU during 2017-18.
xv. Traction consumers:
(MU)Category of Consumers
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(Actuals) (Estimated) (Projected)
Traction 945.25 969.19 1049.62 1062.02 1104.00 1104.00
From the sales volume of previous years, CAGR from 2012-13 to 2015-
16, 2013-14 to 2015-16 and annual growth from 2014-15 to 2015-16
comes to 4%, 5% and 1% respectively. WBSEDCL has considered the
projected sale of 2016-17 and 2017-18 as 1104 MU in each year
considering CAGR from 2012-13 to 2015-16 in this category. Commission
observes that growth rates as reflected from CAGRs show a non-linear
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West Bengal Electricity Regulatory Commission 71
growth trend hence considers the CAGR from 2012-13 to 2015-16 and
admits the sales projected by WBSEDCL for 2016-17. However,
Commission considering the projection of WBSEDCL keeps the sale in
this category for 2017-18 at same level of 2016-17. Thus the Commission
admits 1104 MU as projected sales during 2017-18.
Commission based on the analysis in paragraphs 4.6.2.1 and 4.6.2.2
admits the projected sales to own consumers as 25324 MU against the
claim of 25328 MU by WBSEDCL. The category–wise admitted sales are
enclosed in Annexure-4A.
4.7 Energy sale to other Licensees:
4.7.1 WBSEDCL has submitted that projection of sale of power to CESC Limited,
DVC, IPCL (formerly known as DPSC Limited) and DPL has been made based
on the drawal trend of the licensees during the year 2016 – 2017 as no
projection for requirement of power has been received from CESC Limited,
IPCL and DPL. They further stated that DVC does not draw any power from
WBSEDCL other than exigencies, hence a nominal amount of sale to DVC has
been considered. It is also submitted that as per existing agreement between
Govt. of West Bengal and Govt. of Sikkim, WBSEDCL will have to make 20% of
the sent out generation of Ramman Hydel Station Stage – II to Govt. of Sikkim
at sent out cost of generation of the said Power Station.
4.7.2 Commission also observes from the records available that IPCL has already
initiated the process of purchase of 150 MW power on Medium-term basis using
DEEP portal.
4.7.3 In view of the above the Commission admits the sale of power to other
licensees by WBSEDCL considering notionally 1 MU for CESC, IPCL and DVC
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West Bengal Electricity Regulatory Commission 72
each and sales projected by WBSEDCL for DPL and Sikkim. Hence, the
admitted sale of power to licensees and Sikkim is given below:
Sl. No.
Name of the Licensee
Proposed by WBSEDCL
(in MU)
Admitted by the Commission
(in MU)1 CESC Limited 10.00 1.002 DVC 05.00 1.003 IPCL at HV level 40.00 1.004 DPL 20.00 20.005 Sikkim Govt. 50.00 50.00
Total 125.00 73.00
4.8 Energy required for own consumption:
WBSEDCL for the years 2016-17 and 2017-18 has estimated 50 MU and 52 MU
respectively for consumptions at the offices and sub-stations of WBSEDCL.
Commission considering the trends of actual consumptions during the previous
years admits the same.
4.9 Power Purchase Requirement and Power Purchase Cost:
4.9.1 WBSEDCL submitted that to meet their total energy requirement inclusive of
pumping energy for PPSP they will be continuing to purchase power from
different power supply agencies namely West Bengal Power Development
Corporation Ltd (in short “WBPDCL”), NTPC Limited (in short “NTPC”), NHPC
Limited (in short “NHPC”), the Durgapur Projects Limited (in short “DPL”), IPCL
(formerly known as DPSC Limited), the Damodar Valley Corporation (in short
“DVC”), the PTC India Limited (in short “PTC”) as per existing PPAs and also
from the new units of WBPDCL, NTPC, NHPC, DVC and other generators and
from electricity traders in addition to their own generation. WBSEDCL further
submitted that they will purchase power from different Renewable and Co-
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West Bengal Electricity Regulatory Commission 73
generation sources of energy to meet its Renewable Purchase Obligation (RPO).
WBSEDCL also submitted that they will purchase some quantum of power in
radial mode from DVC at Asansol and Burdwan areas, from DPL (at 33 kV & 11
kV) in and around Durgapur area and from IPCL (at 11 kV) at Asansol area, from
Govt. of Sikkim (at 11 kV) at Rangpoo area, from Assam DISCOMs for serving
the Jhankoti area near Assam – West Bengal border and WBREDA (at 11 kV) at
Frezerganj area for catering its own consumers. WBSEDCL further submitted
that to maintain the gap between supply of power and system demand they have
projected to purchase peak short-term power of 3350 MU. Accordingly,
WBSEDCL has projected to purchase a total quantum of 39799 MU of power to
meet their demand in addition to their own ex-bus generation of 1641 MU
(including PPSP).
4.9.2 WBSEDCL in their petition also requested the Commission to allow the cost of
power for ISGS as may be determined by the Appropriate Commission in its
Tariff Order.
4.9.3 To analyze the power purchase requirement vis-à-vis shortfall and / or surplus,
the Commission directed WBSEDCL to submit projected season-wise hourly
Load Generation Balance Report (LGBR) for the year 2017-18. Accordingly,
WBSEDCL vide their letter No. REG/SERC/MYT 5th Control Period/71 dated 23rd
4.9.4 On prudent analysis, the Commission observed that there is a huge surplus
between requirement of power and power purchase plan as per the hourly LGBR
report submitted by WBSEDCL. Moreover it shows purchase of short-term power
even during off-peak hours, when there is surplus. Commission also observes
that firm power availability shown in LGBR is much less than the share of
WBSEDCL from Inter-State Generating Stations (ISGS).
May, 2017 submitted their seasonal Load Generation Balance Report in respect
of hourly demand vis-à-vis power purchase plan from different sources.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 74
Figure 1: Graphical representation of LGBR submitted by WBSEDCL - Summer
Figure 2: Graphical representation of LGBR submitted by WBSEDCL - Monsoon
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
7000.0000
-01
02-0
304
-05
06-0
708
-09
10-1
112
-13
14-1
516
-17
18-1
920
-21
22-2
3
Firm Availability
Total availability (incl short-term power)
Power requirement (incl T&D loss + PPSP)
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
00-0
1
02-0
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04-0
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06-0
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08-0
9
10-1
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12-1
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14-1
5
16-1
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18-1
9
20-2
1
22-2
3
Total availability (incl short-term power)
Firm Availability
Power requirement (incl T&D loss + PPSP)
MW
MW
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 75
Figure 3: Graphical representation of LGBR submitted by WBSEDCL - Winter
4.9.5 In response to Commission’s query, WBSEDCL vide their letter dated 20th
� Demand of own consumers,
December, 2017 submitted that scheduling of NTPC power plants are
considered as per scheduled generation of last 3 years and availability of
WBPDCL has been considered as per projection received from WBPDCL. They
further submitted that total availability including power purchase has been
projected to meet -
� Pumping power to PPSP,
� Excess loss over normative loss,
� Committed sale to person other than consumers and licensees of 250
MW,
� Sudden requirement of power by other licensees of the State in
exigencies.
WBSEDCL also submitted that they have considered additional gap for spinning
reserve of 5% and cold reserve of 5% to meet the uncertainty of power
availability in real time operation.
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
7000.0000
-01
02-0
3
04-0
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06-0
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10-1
1
12-1
3
14-1
5
16-1
7
18-1
9
20-2
1
22-2
3
Firm Availability
Total availability (incl short-term power)
Power requirement (incl T&D loss + PPSP)
MW
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 76
4.9.6 The Commission after careful analysis observes that for the purpose of
finalizing power procurement plan, estimation of actual availability from the
power plants is required. Thus the hourly availability of each power plant as per
their Declared Capacity (DC) during previous years after prudent analysis
requires to be considered for LGBR purpose instead of considering their
scheduled generation. Thus consideration of scheduled generation of previous
years for the purpose of ISGS availability projection is not accepted. Moreover,
from the Regional Energy Accounting Statement (REA) published by ERPC and
the bills submitted by NTPC and DVC for the month of March 2017 it is
observed that FSTPS-Stage I&II, FSTPS-Stage-III, TSTPS and Mejia-V have
achieved annual PAF for the year 2016-17 more than their normative PAF.
However, in absence of proper hourly average DC values, Commission finds it
suitable to consider the availability based on normative availability factor,
normative auxiliary consumption and % share / LTA contract of WBSEDCL from
these ISGS. For the generating stations of WBPDCL, Commission finds it
suitable to consider the projected availability as per communication of WBPDCL
submitted by WBSEDCL. For all the hydro generating stations, IPPs, renewable
and co-generation, hourly availability submitted by WBSEDCL is considered.
Commission further observes that any additional purchase of power due to
excess loss over normative loss, if any, will be taken care of during FPPCA as
per the provisions of Tariff Regulations. However, WBSEDCL has not given any
reason for considering short-term purchase during off-peak hours.
4.9.7 Commission now considering the 5% spinning reserve, 5% cold reserve and
committed sale to persons other than consumers and licensees as well as
normative availability from ISGS generation as stated in paragraph 4.9.6 above
re-computes the LGBR as below:
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 77
Revised LGBR for WBSEDCL1. Summer
2. Monsoon
0
1000
2000
3000
4000
5000
6000
7000
1 3 5 7 9 11 13 15 17 19 21 23
Load including PPSP Pump
Firm availability incl PPSP Gen
0
1000
2000
3000
4000
5000
6000
7000
1 3 5 7 9 11 13 15 17 19 21 23
Load including PPSP Pump
Firm availability incl PPSP Gen
MW
MW
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 78
3. Winter
4.9.8 It is observed from revised LGBR, that considering 5% spinning reserve and 5%
cold reserve as well as export commitment of WBSEDCL there is shortfall only
during peak hours, which may be sourced from short-term market. Thus,
generality, Commission does not find any merit to consider round-the clock
purchase of short-term power, except under the conditions as mentioned in the
provision to paragraph 4.9.10 below.
4.9.9 Energy available from own generating stations of WBSEDCL including PPSP
for the year 2017-18 has been admitted as 1640.97 MU considering the
following:
a) For Hydel and mini hydel power plants the generation has been projected
considering the same PLF as in 2015-16, as these are must run plants
along with normative auxiliary;
b) For PPSP the generation projected by WBSEDCL in line with actual
generation during 2015-16 has been admitted along with normative
0
1000
2000
3000
4000
5000
6000
7000
1 3 5 7 9 11 13 15 17 19 21 23
Load including PPSP Pump
Firm availability incl PPSP GenMW
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 79
auxiliary consumption. Pumping energy requirement of PPSP has been
admitted as 1425.68 MU considering 74% efficiency;
c) For solar projects the amount projected by WBSEDCL has been admitted.
d) In view of availability of grid power in Sagar Island no sent out generation
from Rudranagar diesel generating station has been projected by
WBSEDCL, which has been admitted by the Commission.
Detailed computation has been enclosed in Annexure-4B.
4.9.10 Considering the requirement for 24x7 uninterrupted supply in the State,
Commission allows the power purchase quantum as projected by WBSEDCL.
However such power is to be purchased following the merit order despatch
principle. Accordingly Commission computes the power purchase cost of
WBSEDCL in Annexure-4C and Annexure-4D considering the followings:
a) The capacity charge payable has been computed considering the latest
tariff order published by Appropriate Commission vis-à-vis the share of
WBSEDCL in respective generating stations following the principles of
Tariff Regulations.
b) Energy charge rate has been considered based on actual power purchase
bills including applicable trading margin, etc, and the same has been
considered for merit order despatch except for must run plants.
c) For WBPDCL availability has been projected as per reduced availability
declared by WBPDCL and the fixed cost has been adjusted accordingly.
In absence of tariff order of WBPDCL for the year 2017-18, the capacity
charge and energy charge has been computed considering the latest
available tariff order for the year 2016 – 2017 in respect of WBPDCL.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 80
d) The purchase price of power from DVC in radial mode has been
considered as per the actual power purchase bills.
e) The purchase price of power from CESC in radial mode has been
considered at the rate approved in Tariff order 2016-17.
f) The rate of purchase of power from DPL has been considered as
projected by WBSEDCL.
g) The purchase price of Assam Power, Short Term power for Solar RPO
and Short Term power for Non Solar RPO has been considered as
projected by WBSEDCL.
h) Considering the fact that neither any power has been purchased from
Dagachhu HEP during 2017-18 nor any PPA has been executed between
WBSEDCL and Dagachu HEP till date, the power purchase from
Dagachhu HEP is not considered and an equivalent amount of power is
considered under short-term purchase.
i) Considering the requirement of short-term power during peak hours, the
average peak rate of IEX power during the year 2017- 2018 has been
considered for short-term power purchase.
Provided that during real time operation, WBSEDCL may purchase power from
short-term markets based on the ‘real time’ power situation at the relevant time
or if such purchase ultimately reduces the overall cost of power.
4.9.11 The power purchase cost admitted by the Commission comes to Rs.
1351278.40 Lakh with an average rate of 339.53 paisa/unit.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 81
4.9.12 Notwithstanding whatever else is contained elsewhere in contrary to this order
the above referred price and quantum of energy as considered is for the
purpose of projection in this tariff order only subject to the following conditions.
a) Such price and quantum will be changed / modified by the Commission
during the stage of FPPCA on submission of audited data.
b) In addition to the above mentioned price the purchase cost may vary on
applicability of MVCA or MFCA or FCA or FPPCA or any other regulatory
order / approval in accordance with the Act and rules / regulations framed
there under and any other statute or international bilateral agreement.
c) Though the energy quantum from Kolaghat, Bandel and Sagardighi
(Units I to IV) generating stations of WBPDCL is considered under this
order at a reduced level than normative level yet it does not limit
WBPDCL from generating at its normative level or at higher level than
norms at those generating stations.
4.10 The purchase price/cost of electricity by WBSEDCL from different licensees shall
be as per Annexure-4D for the years 2017 – 2018. However, such purchase
prices are subject to variation due to changes in their prices as already explained
at paragraph 4.9.12 above.
4.11 Out of the above purchase almost all the energy is being available at the
generation bus-bar except a part of the DVC and power drawn from other licensee
at HV level in radial mode. The radial mode feeding from any licensee is
considered at the point of injection in the distribution system. The feeding by DVC
in the grid (132 KV) is in the STU system.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 82
4.12 The Commission now draws the energy balance for the years 2017 – 2018
considering the admitted net generation from different generating stations of
WBSEDCL and the purchase of power from different agencies as detailed in the
foregoing paragraphs and the sale of energy to own consumers and other
licensees along with the normative loss. Accordingly, the energy balance is shown
in the table in Annexure – 4E.
4.13 For above energy balance, distribution loss in the distribution system and the
transmission loss in transmission systems of WBSETCL have been considered as
per the norms as specified in the Tariff Regulations for 2017 - 2018. CTU loss has
been considered as projected by WBSEDCL.
4.14 It is observed from the energy balance prepared and enclosed as Annexure – 4E that incidental power to the tune of 7165.89 MU will remain in the credit of
WBSEDCL, which includes committed sale to persons other than consumers and
licensees. WBSEDCL shall either sell such power to others or back down some of
the generation. Accordingly Commission finds it suitable to adjust the cost of
7165.89 MU power at average power purchase rate of 339.53 paisa/unit. Actual
amount realized by the licensee shall be considered during FPPCA.
4.15 For merit order dispatch, SLDC and ALDC of WBSEDCL shall consider the energy
charge of the generating stations as determined in the prevailing relevant tariff
orders for the generating companies / licensees.
Monthly Fuel Cost Adjustment (MFCA) or Monthly Variable Cost Adjustment
(MVCA) as may be applicable shall be added to the above energy charge for merit
order dispatch as notified by WBPDCL or DPL or CESC for their respective
generating stations or sales as licensee for the concerned month.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 83
4.16 For power stations of NTPC and DVC, WBSEDCL shall provide on monthly basis
to SLDC / ALDC of WBSEDCL the average value of fuel related cost on the basis
of last three months which are available to WBSEDCL in order to consider such
cost for merit order dispatch. Such information shall be given to SLDC on each
month for each power station within three working days of receiving the power
purchase bill for that power station on the basis of the amount mentioned in the
bill. For this purpose for NTPC the summated amount of base energy charge and
fuel price adjustment (FPA) shall be considered as effective energy charge.
Similarly for DVC the summation of energy charge and fuel cost surcharge (FCS)
shall be considered as effective energy charge. Such effective energy charge shall
then be considered by SLDC / ALDC of WBSEDCL for merit order dispatch
purpose only. In case of single part tariff where fixed charge recovery through
target availability is not done, the tariff itself will be considered as energy charge
for merit order dispatch.
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE-4A
ENERGY SALES TO OWN CONSUMERS
West Bengal Electricity Regulatory Commission 84
SL No.
Category of Consumers
For the Year 2017-18
Projected by WBSEDCL
Admitted by the Commission
(in MU)
A. LT Category
1 Labour line 2.00 2.00 2 Lifeline 436.00 436.00 3 LT Domestic (below 50 kVA) 10173.00 10173.00
4 LT Domestic (50 - 200 KVA) 9.00 9.00
5 LT Commercial (below 50 KVA) 2175.00 2175.00 6 LT (Commercial) (50-200 KVA) 158.00 158.00 7 LT Others (50 - 200 kVA) 48.00 48.00
8 Pvt Edu 0.93 0.93
9 LT Public Bodies 29.00 29.00
10 Common service for industrial Estate 0.01 0.01
11 Commercial Plantation 2.00 2.00
12 Construction Power 30.00 30.00
13 Emergency 0.06 0.10
14 Short term 36.00 36.00
15 Temporary 0.00 0.00
16 LT Industrial (below 50 kVA) 962.00 962.00
17 LT Industrial (50 -200 KVA) 377.00 377.00
18 LT Agriculture 1745.00 1745.00
19 LT Public Water Works 317.00 317.00
15 Public Lighting 285.00 285.00
Total LT 16785.00 16785.04
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 85
SL No.
Category of Consumers
For the Year 2017-18
Projected by WBSEDCL
Admitted by the Commission
(in MU)
B. HT Category 1 HT Domestic 14.00 14.00 2 HT Commercial 851.00 847.00 3 MES 105.00 105.00 4 HT Public Utility 192.00 192.00 5 Sports Complex & Auditorium 4.00 4.00 6 Construction 15.00 15.00 7 Private Educational 41.00 41.00 8 Commercial Plantation 3.00 3.00 9 Common Service for Industrial Estate 0.00 0.00
10 Emergency Supply 3.00 3.00 11 Short Term 1.00 1.00 12 HT Industrial 5593.00 5593.00 13 HT Community Irrigation 0.00 0.00 14 HT Public Water Works 217.00 217.00 15 Cold Storage & Dairy 400.00 400.00 16 Traction 1104.00 1104.00
Total HT 8543.00 8539.00
Overall Total Sale (A + B) 25328.00 25324.04
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE-4B
POWER FROM OWN GENARTING STATIONS
West Bengal Electricity Regulatory Commission 86
SL No.
Generating Station Capacity PLF Gross Gen
Aux Aux Ex-bus
% MW % MU MU MU
A.
Generation available from WBSEDCL Own Plants (at EHV) Hydel
1 Jaldhaka Hydel Power Station Stage I 36.00 43.76% 138.00 1.0% 1.38 136.62 2 Rammam Hydel Power Station 51.00 56.85% 254.00 1.0% 2.54 251.46 sub-total 388.08 Mini Hydel 3 Jaldhaka Hydel Power Station Stage II 8.00 51.37% 36.00 1.0% 0.36 35.64 4 TCF Hydel Power Station PS - I 22.50 14.21% 28.00 1.0% 0.28 27.72 5 TCF Hydel Power Station PS - II 22.25 14.21% 28.00 1.0% 0.28 27.72 6 TCF Hydel Power Station PS - III 22.50 12.18% 24.00 1.0% 0.24 23.76 sub-total 114.84 7 Purulia Pump Storage 900.00 13.38% 1055.00 1.7% 17.935 1037.065 TOTAL (A) 1563.00 23.02 1539.987
B.
Generation available from WBSEDCL Own Plants (at HV)
Mini Hydel 1 Kurseong Fazi Micro Hydel Power Station 2.50 6.26% 1.37 1.0% 0.01 1.36 2 Little Rangit Micro Hydel Poer Station 2.00 47.26% 8.28 1.0% 0.08 8.20 3 Sidrabong Micro Hydel Power Station 0.60 2.28% 0.12 1.0% 0.00 0.12 4 Richington Micro Hydel Power Station 2.00 7.36% 1.29 1.0% 0.01 1.28 5 Messanjore 4.00 21.78% 7.63 1.0% 0.08 7.56
6 Mangoo Kalikhola Micro Hydel Power Station 3.00 27.78% 7.30 1.0% 0.07 7.23
sub-total 25.73 7 Solar 40.00 9.04% 75.25 75.25 TOTAL (B) 101.24 0.26 100.98
OVERALL (A:B) 1664.24 23.27 1640.969
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE-4C
ENERGY TO BE PURCHASED
West Bengal Electricity Regulatory Commission 87
SL No.
Name of Agency
Installed capacity
Ex-bus Availability
/ Design Energy
WBSEDCL Share MU Proposed
Purchase Admitted Aux Exbus PAFM
MW % MW % MU % MW MU MU
A Injecting in CTU
1 Farakka TPS Stage I & II 1600 6.47% 1496.5 85% 11142.94 30.54% 3403 2374 3403
2 Farakka TPS Stage III 500 5.75% 471.25 85% 3508.93 36.80% 1291 826 1291
3 Talcher STPS 1000 5.75% 942.5 85% 7017.86 9.10% 639 610 639
4 NHPC (Rangit) 60 1% 338.61 28.34% 95 93 95
5 NHPC (Teesta V) 510 1.2% 2572.70 23.98% 610 591 610
6 NHPC (TLDP III) 132 1% 594.09 100% 588 582 588
7 NHPC (TLDP IV) 160 1% 720.00 100% 713 713 713
8 PTC (Chukhha) 336 554 554 554
9 PTC (Kurichhu) 60 20 20 20
10 PTC (Tala) 1020 1297 1297 1297
11 PTC (Baglihar) 450 2807 22.22% 100 618 655 618
12 PTC Adhunik 540 9% 100 797 741 797
13 DVC (Mejia V) 250 9% 227.5 85% 1693.97 20% 339 142 339
14 TPTCL (Maithon Right Bank)
1050 6.50% 981.75 85% 7310.11 28.57% 300 2089 2000 2089
15 NVVN Bundled Power Solar
69 69 69
16 NVVN Bundled Power Thermal
361 361 361
17 Dagachhu HEP 360 362 0
18 Short Term Power 3350 1859
19 Short Term for Solar RPO
100 ####
# 138 138
20 Short Term for Non Solar RPO
266 266
sub-Total 15744.0 15744.1
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 88
SL No.
Name of Agency Installed capacity
Ex-bus Availability
/ Design Energy
WBSEDCL Share MU Proposed
Purchase Admitted Aux Exbus PAFM
MW % MW % MU % MW MU MU B Injecting in STU 1 Kolaghat TPS 1260 9.6% 1139 75% 7483.49
MU communi-cated
by WBPDCL
5018 5018 5018.00 2 Bakreshwar TPS (U#1,2,3) 630 9.0% 573.3 85% 4268.79 4340
7164 4340.00
3 Bakreshwar TPS (U#4,5) 420 9.0% 382.2 85% 2845.86 2824 2824.00 4 Bandel TPS 450 9.7% 406.35 77% 2740.91 1676 1676 1676.00 5 Santaldih TPS 500 9.0% 455 85% 3387.93 3651 3651 3651.00 6 Sagardighi TPS (U#1 &U#2) 600 9.0% 546 85% 4065.52 2409 2409 2409.00 7 Sagardighi TPS (U#3 &U#4) 1000 9.0% 910 85% 6775.86 3250 3250 3250.00 8 DPL 132 kV 5 5 5.00 9 Tata Power Company Limited 129 129 129.00
10 Bengal Energy Limited 227 227 227.00 11 Electro Steel Casting Limited 70 70 70.00 12 Shree Renuka Sugars Ltd 50 50 50.00 13 Himadri Chemical Ltd 12 MW 7 7 7.00 14 Himadri Chemical Ltd 8MW 43 43 43.00 15 Nippon Power Limited 11 11 11.00 16 Neora Hydro Limited 9 9 9.00 17 Rashmi Cement Ltd 6 6 6.00 18 Concast Bengal Ind Limited 5 5 5.00 sub-Total 23730 23730.00 C Injecting in WBSEDCL system 1 DPL 33 kV & 11 kV 69 69 69.00 2 CESC Ltd 40 40 40.00 3 DVC (radial) 212 212 212.00 4 WBREDA 0.21 0.21 0.21 5 Assam Power 3.5 4 3.50 6 Gov. Sikkim Rangpo 0.05 0 0.05 sub-Total 324.76 324.76
OVERALL POWER PURCHASE 39799 39799
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE-4D
POWER PURCHASE COST
West Bengal Electricity Regulatory Commission 89
Sl No
Name of Agency
Gen ARR as per Tariff Order
Energy charge
rate
Purchase Admitted
Power Purchase cost
Fixed Charge
Energy Charge
Total Charge
lakh Paisa/kWh MU Rs lakh
A Injecting in CTU
1 Farakka TPS Stage I & II 94218.00 245.98 3403 28774.18 83708.31 112482.49
2 Farakka TPS Stage III 53287.28 251.69 1291 19609.05 32499.26 52108.31
3 Talcher STPS 65288.91 156.92 639 5941.29 10021.30 15962.59
4 NHPC (Rangit) 10795.88 183.00 95 1529.78 1738.54 3268.32
5 NHPC (Teesta V) 51874.39 116.00 610 6219.74 7070.55 13290.29
6 NHPC (TLDP III) 34792.88 309.70 588 17396.44 18214.98 35611.42
7 NHPC (TLDP IV) 20370.99 144.40 713 10185.50 10292.83 20478.33
8 PTC (Chukhha) 229.00 554 12679.12 12679.12
9 PTC (Kurichhu) 217.00 20 434.00 434.00
10 PTC (Tala) 216.00 1297 28013.69 28013.69
11 PTC (Baglihar) 372.30 618 22991.01 22991.01
12 PTC Adhunik 16225.11 103.88 797 16225.11 8280.90 24506.01
13 DVC (Mejia V) 23179.19 239.95 339 4635.84 8129.34 12765.18
14 TPTCL (Maithon Right Bank) 103948.26 199.73 2089 29699.50 41715.67 71415.17
15 NVVN Bundled Power Solar 1069.95 69 7361.26 7361.26
16 NVVN Bundled Power Thermal
351.16 361 12683.90 12683.90
17 Dagachhu HEP 0.00 0.00
18 Short Term Power 391.66 1859 72809.59 72809.59
19 Short Term for Solar RPO 450.00 138 6208.65 6208.65
20 Short Term for Non Solar RPO
334.00 266 8884.40 8884.40
sub-Total 473980.89 15744.1 140216.42 393737.30 533953.72
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 90
Sl No
Name of Agency
Gen ARR as per Tariff Order
Energy charge rate
Purchase Admitted
Power Purchase cost
Fixed Charge
Energy Charge
Total Charge
lakh Paisa/kWh MU Rs lakh
B Injecting in STU
1 Kolaghat TPS 52804.17 245.47 5018.00 35407.44 123176.85 158584.29
2 Bakreshwar TPS (U#1,2,3) 44910.88 216.33 4340.00 45660.04 93887.22 139547.26
3 Bakreshwar TPS (U#4,5) 29940.58 216.33 2824.00 29825.59 61091.59 90917.18
4 Bandel TPS 17382.99 270.27 1676.00 10629.27 45297.25 55926.52
5 Santaldih TPS 44812.92 217.05 3651.00 46552.76 79244.96 125797.72
6 Sagardighi TPS (U#1 &U#2) 43778.04 217.23 2409.00 28719.78 52330.71 81050.49 7 Sagardighi TPS (U#3 &U#4) 103356.30 225.33 3250.00 54885.74 73232.25 128117.99
8 DPL 132 kV 419.00 5.00 209.50 209.50
9 Tata Power Company Limited
186.00 129.00 2399.40 2399.40
10 Bengal Energy Limited 276.00 227.00 6265.20 6265.20
11 Electro Steel Casting Limited 253.00 70.00 1771.00 1771.00
12 Shree Renuka Sugars Ltd 213.35 50.00 1066.75 1066.75
13 Himadri Chemical Ltd 12 MW
211.00 7.00 147.70 147.70
14 Himadri Chemical Ltd 8MW 334.00 43.00 1436.20 1436.20
15 Nippon Power Limited 360.00 11.00 396.00 396.00
16 Neora Hydro Limited 360.00 9.00 324.00 324.00
17 Rashmi Cement Ltd 237.00 6.00 142.20 142.20
18 Concast Bengal Indusrty Ltd 319.00 5.00 159.50 159.50
sub-Total 336985.88 23730.00 251680.62 542578.27 794258.89
C Injecting in WBSEDCL system
1 DPL 33 kV & 11 kV 395.00 69.00 2725.50 2725.50
2 CESC Ltd 625.00 40.00 2500.00 2500.00
3 DVC (radial) 435.82 212.00 8312.41 9239.38 17551.79
4 WBREDA 400.00 0.21 8.40 8.40
5 Assam Power 785.00 3.50 2.06 274.75 276.81
6 Gov. Sikkim Rangpo 655.09 0.05 3.28 3.28
sub-Total 0.00 324.76 8314.47 14751.31 23065.78
OVERALL POWER PURCHASE (A + B +C) 39798.83 400211.51 951066.88 1351278.40
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE-4E
ENERGY BALANCE
West Bengal Electricity Regulatory Commission 91
Ref Particulars Derivation Admitted
A Energy Input 1 Own Generation 1664.24 2 Auxiliary Consumption 23.27
3Units delivered to system from generation (including infirm power, if any)
3 = 1-2 1640.97
(i) Energy delivered to STU system 1539.99 (ii) Energy delivered to Distribution system 100.98
4 Energy Purchased (i) Energy purchased at ISTS periphery 15744.07
(ii) Energy purchased at STU periphery 23730.00
(iii) Energy purchased at Distribution periphery 324.76
Less: CTU Loss 325.08
(iv) Less: STU Loss 1383.43 5 Energy Received for Wheeling 13.00 6 Gross Energy Input 7 = sum(3:5) 39744.30
7Energy sold to persons other than licensee or any consumers 7165.89
8Additional units allowed by Commission for Sales to persons other than licensee or any consumers 252.22
9Units sold/used for pumping energy of Pumped storage project at Bus bar 1425.68
10Additional units allowed by Commission against Pumping Energy for Pumping Loss 50.18
11 Units sold to other Licensees 72.00
12Additional Units allowed by Commission for Sales to other licensees 2.53
13 Net UI [Actual drawl]
14 Total Energy goes out of System 15 = sum(7:13)8968.49
15 Energy input for own system 15 = 6-14 30775.80
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 92
Ref Particulars Derivation Admitted
B Energy utilisation [Form 1.7] a Units sold to consumers 25324.04
Units sold to Licensees at radial mode 1 b Units wheeled 12 c Additional Units allowed for wheeling 1
dUnits utilised in own premises including construction power
52.00
e Unutilised Units 5385.77 Total Energy sum(a:e) 30775.80
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 5
FIXED CHARGES
West Bengal Electricity Regulatory Commission 93
5.1 The analysis of the fixed charges projected by WBSEDCL for the ensuing year
2017-18 of fifth control period under the Multi Year Tariff (MYT) application under
different heads of accounts has been taken up in this chapter.
5.2 WBSEDCL has projected the gross fixed charges, income from different non-tariff
sources and different income from other heads for the ensuing year 2017-18.
5.3 While determining fixed charges on different heads for WBSEDCL for the fifth
control period 2017-18 the following considerations have taken place:
5.3.1 Commission observed that Central Electricity Regulatory Commission based on a
hybrid index of WPI (Wholesale Price Index) & CPI (Consumer Price Index) has
observed an annual inflation trend of 8.35 % while fixing the norms of O&M
expenses in Central Electricity Regulatory Commission (Terms and Conditions of
Tariff) Regulations, 2014 (hereinafter referred to as ‘CERC Tariff Regulations’) for
central sector utilities for the period 2014-2019. This inflation trend of 8.35 % is
computed based on five-year average of WPI and CPI indices for FY 2008-09 to
FY 2012-13 considering 60% and 40% weightage on WPI and CPI respectively.
However, while fixing norms of O&M cost (which includes employee cost also)
the annual escalation rate on O&M expenses during the period 2014-2019 has
been considered as 3.32% for A.C. transmission system as per the statement of
reasons of the CERC Tariff Regulations for the said period. This 3.32% is the
110% of the actual Compounded Annual Growth Rate (CAGR) (3.02%) of O&M
expenses for A.C. transmission system during the period 2008-09 to 2012-13
computed on the basis of 70% weightage on actual O&M cost of per bay of sub-
station and 30% weightage on actual O&M cost of per CKM transmission line.
Taking the above mentioned principle adopted by CERC as a guideline
Commission also decides to find out a reasonable annual escalation rate for
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 94
WBSEDCL for all sub heads under O&M expenses, Lease Rental Expenses,
expenses for outsourcing (manpower and vehicle), expenses for outsourcing
(other than manpower and vehicle), and expense head for complaint
management mechanism, insurance and rates & taxes with certain deviation
based on certain reasons as explained below:
a) The Fifth Control period is comprised of the year 2017-18. Inflationary trend
has been considered upto Jan, 2017 for WPI and CPI and weightage has
been given to WPI & CPI at the ratio of 60:40 in line with the norms fixation
methodology under CERC Tariff Regulations. This is being done in order to
capture the realistic trend of 2017-18 as far as possible so that projection for
fifth control period 2017-18 can have better accuracy. Accordingly based on
the WPI numbers and CPI numbers as available in the website of Economic
Advisor of GOI for WPI and Labour Bureau of GOI for CPI the computed
inflation trend for the above 10 months and previous years are given in the
following table 1.
Table- I
TREND OF INFLATION RATE FOR THE PERIOD APRIL,2016 TO JAN,2017Average inflation rate as per WPI from April,2016 to Jan,2017 2.88Average inflation rate as per CPI from April,2016 to Jan,2017 4.45
Average inflation rate as per WPI + CPI (60:40) from April,2016 to Jan,2017 3.51Note : For detail data Annexure -5A may be seen
b) Different sub heads under O&M expenses, Lease Rental Expenses,
expenses for outsourcing (manpower and vehicle), expenses for outsourcing
( other than manpower and vehicle), and expense head for complaint
management mechanism, insurance and rates & taxes are effected by
inflationary trend but at different degrees depending on the characteristics of
such head or sub-head. In this context two recognized inflationary trends
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 95
used in the country are WPI index and CPI index. Along with these two types
of inflationary rate for power sector another third type of inflationary rate has
been used by the Commission which is based on hybrid index (WPI+CPI) as
explained in paragraph (a) above. In table-II the basis of inflationary rate
considered for such heads and sub-heads of expenditure are given. In this
context Commission has decided to consider a number of elements of fixed
charges to be sensitive to CPI index based inflationary rate instead of hybrid
(WPI+CPI) index in line with CERC norms fixation as explained above on the
ground that those heads/ subheads of any distribution licensee are heavily
burdened with employee wages/ allowances and benefits. However for lease
rental line such sensitivity is considered with WPI index. In this context it is to
be noted that all these heads of expenditure are treated as heads under O&M
function of CERC Tariff Regulations. Accordingly the above inflation rate as
given in the table above are used for applicability in giving escalation rate in
2017-18 with respect to the previous years’ admitted expenditure to find out
the admitted expenditure of the referred heads in that year. Thus the inflation
rate considered for tariff computation are as per the following table - II:
Table –II
INFLATION TRENDS
Financial Years CPI WPICombined WPI & CPI (60 : 40)
Remarks
2012-13 10.43 7.36 8.59 Actual2013-14 9.72 5.98 7.48 Actual2014-15 6.30 2.15 3.81 Actual2015-16 5.65 -2.51 0.75 Actual2016-17 4.45 2.88 3.51 Actual
2012-13 to 2016-17 7.31 3.17 4.83 Averaged on annual Basis
2013-14 to 2016-17 6.53 2.12 3.892014-15 to 2016-17 5.47 0.84 2.692015-16 to 2016-17 5.05 0.18 2.132012-13 to 2015-16 8.03 3.25 5.16
Note : For detail data Annexure –5 A may be seen
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 96
c) It has been observed that the function of meter reading and bill distribution is
under a transition mechanism now from manual billing to spot billing where
meter reading and bill distribution are done at the same instance resulting
into lesser transaction cost. Thus to capture the flavor of this transition period
properly and to have a better projection or estimation from 2016-17 to 2017-
18, the head of meter reading and bill distribution has been considered
compositely in the manner done by WBSEDCL.
d) For finding out the expenditure to be admitted by the Commission, the
estimated expenditures of 2016-17 submitted by WBSEDCL were scrutinized
by the Commission so that overestimated value can be rationalized to a
reasonable extent. This is being done as otherwise the existence of
overestimated expenditure for 2016-17 may result into higher admitted
amount for fifth control period 2017-18 because the computation for
projection of expenditure for 2017-18 is done by applying the annual
escalation rate over the estimated figure of 2016-17. As regards, the
estimated value as provided by WBSEDCL for 2016-17 Commission finds
that against some elements, the estimation of expenditure appears to be on
extremely higher side. The Commission cannot accept such over-estimation.
In any year this deviation can occur for any item of expenditure but it cannot
be considered as a trend for future projection. Such items of expenditure
which are estimated on higher side have been dealt in the next paragraph. In
fact for realistic estimation for 2016-17 the impact of business volume
increase expressed in CAGR for 2013-14 to 2015-16 alongwith inflationary
trend in 2016-17 (upto January 2017) has been considered by the
Commission. Accordingly, the Commission has done its own estimation as
may be found in the Table-1 of Annexure –5B by applying its prudence which
are explained below item wise:
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 97
i) The trend of actual expenditure on lease line head during the period
2012-13 to 2015-16 is very erratic. The value of 2012-13 to 2014-15 has
not been considered for the purpose of estimation of 2016-17. Lease
rental charges as estimated by WBSEDCL for 2016-17 of Rs.5901 Lakh
is about 288.42% higher than the audited actual value of Rs 2046 lakh in
2015-16. The primary lease line for WBSEDCL’s communication network
has been completed by 2012-13. Thus the estimated expenditure in 2016-
17 cannot be so high. WBSEDCL has attempted to justify their estimation
for 2016-17 and 2017-18 by indicating in their submission under para 6.4
that lease rental expenses include the fees paid to the telecom operators
for utilizing the MPLS VPN connectivity but no detailed justification has
been furnished for such higher estimation. Hence it is estimated by the
Commission for 2016-17 after imposing WPI based inflation rate for 2016-
17 along with additional impact due to increase in establishments of
WBSEDCL on the actual expenditure of 2015-16 . Such additional impact
due to increase in establishments has been considered as 0.25% for each
1% increase in distribution line length (DLL). Accordingly the expenditure
for 2016-17 for lease rental as estimated by the Commission is Rs 2134
lakh.
ii) Expenses for complaint management mechanism is an expenditure
related to toll free telephone for ZCC, SMS charge to communicate with
mobile van, rental charges of IVRS system, separate telephone at
customer care centre for complaint management mechanism and anti-
theft toll free telephone charges. The whole system being already
stabilized by this time it will now be considered as a controllable item in
the fifth control period 2017-18. WBSEDCL has not justified the reasons
that why in 2016-17 the estimated expenditure of Rs.351 Lakh has
increased by 11.43% of the actual value of Rs.315 Lakh in 2015-16 while
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 98
there is a progressively downward trend in the expenditure during the
previous year 2012-13 to 2015-16 indicating a negative CAGR for the
period @ 6%. Commission finds no merit in such estimation by
WBSEDCL. Thus the estimated value for 2016-17 has been considered
by giving effect to this downward trend applying CAGR of the actual
expenditure of previous years 2012-13 to 2015-16 on the audited value of
2015-16. Accordingly the expenditure on complaint management
mechanism as estimated by the Commission for 2016-17 is Rs 296 Lakh.
Impact of separate inflationary trend for 2016-17 on this head has not
been considered as in telecom service such escalation rate is very
insignificant as such sector is still expanding at faster rate.
iii) For the expenditure heads of HT Line and substation Maintenance & LT
Mobile Maintenance Service-MCSU specific classified information
separately for the segments of ‘Manpower & Vehicle’ and ‘Other than
Manpower & Vehicle’ is not available for all the previous years from the
audited accounts. Such classified audited data are to some extent
available for three previous Years 2012-13, 2013-14, 2014-15.
Commission directed to submit the required information with breakup of
outsource expenditure under the sub heads ‘Manpower & Vehicle’ and
‘Other than Manpower & Vehicle’ for HT Line and substation Maintenance
& LT Mobile Maintenance Service-MCSU in point (iv) of Memo. No.
WBERC/TP-65/16-17/2478 Dated 28.3.2017 for all the Previous Years
and also Base Year and Ensuing Year. WBSEDCL authority in their reply
under Memo. No. REG/SERC/MYT 5th Control Period/71 Dated 23.5.2017
in Annex II stated that they have considered all the outsourcing expenses
under Manpower head as all the expenses related to the outsourced
activities are manpower oriented. However during scrutiny Commission
observes that the outsourcing expenses have some elements within it
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 99
which are uncontrollable in nature since these are related to Manpower
and are to be paid as per statute following labour rates as per Govt.
Order, Employers contribution as per Employees Provident Fund
Organization (EPFO), Employers contribution as per Employees State
Insurance (ESI) and the part related to vehicle, which is dependent upon
the Govt. rate applicable for the vehicle category. Again, some elements
as Profit and Overhead are not dependent upon any statute or Govt.
Order and accordingly controllable since these are proximately related to
leverage of efficiency factors which prompt a proper assessment of cost
of resources while exercising due diligence before awarding a contract. It
is worthwhile to mention that as per copy of outsourcing contracts as
entered into by WBSEDCL and submitted to the Commission alongwith
their petition, it is observed that in certain cases wages have been agreed
upon at a level significantly higher than the minimum wages besides
introducing special allowances. Again, profit and overhead have been
agreed upon at a rate of 25% in many cases the rationale for which is not
clear. Such additional elements, when introduced, change the character
of the expenditure as it assumes the factor of controllability. This aspect
will accordingly be taken up while truing up during APR.
However, now in absence of such break up of Outsourced expenditure
into controllable and uncontrollable elements, the data available for 2015-
16 and the estimate of 2016-17 and the ensuing year 2017-18 as
presented in Form 1.17(k) alongwith the Tariff Petition for 2017-18, the
gross expenditure shown against HT Line and substation Maintenance &
LT Mobile Maintenance Service-MCSU has been reclassified into
controllable and uncontrollable elements on the basis of latest
classification available from audited accounts for 2013-14 since such
classification is not fully available in Accounts for 2012-13, 2014-15 and
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 100
2015-16. It was observed that in case of HT Line and substation
Maintenance, no break up was available in the petition. However such
break-up was available in the Annual Accounts for the years 2012-13,
2013-14 and 2014-15. In case of LT Mobile Maintenance Service-MCSU,
no break-up was available in the petition and no break up was available
either in the Accounts for the years 2012-13, 2014-15 and 2015-16.
Accordingly such data for LT Mobile Maintenance Service-MCSU was
reclassified for the years 2012-13, 2014-15, 2015-16 based on the
audited actual for the year 2013-14 as per Annual Accounts, which was
available. Keeping parity with the above, such break-up was derived for
the year 2015-16 based on the audited actual of 2013-14 which was also
available in case of HT Line and substation Maintenance. WBSEDCL is
directed to submit data under each head of Out Source expense
classified as (i) Manpower and Vehicle comprising expenditure on the
uncontrollable elements which are guided by statute and Govt. orders (ii)
Other than Manpower and Vehicle as profit and overhead duly certified by
Auditor with APR for the year 2017-18. Based on the reclassified
elements of expenditure on Manpower and vehicle and other than
Manpower and Vehicle for the year 2015-16 as stated above and
depicted in Table 3 of Annex 5B, the Commission estimated the
expenditure on Outsourced services - HT Line and substation
Maintenance & LT Mobile Maintenance Service-MCSU for 2016-17
considering additional impact due to increase in business growth of
WBSEDCL on the actual expenditure of 2015-16. Such additional impact
due to increase in business growth has been considered with respect to
increase in distribution line length (DLL) in case of HT Line and substation
Maintenance and with respect to increase in Consumer Strength (CS) in
case of LT Mobile Maintenance Service-MCSU. Impact of hybrid inflation
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 101
for 2016-17 (upto January 2017) has been considered in case of
expenditure involving ‘Other than Manpower & Vehicle’ for both HT Line
and substation Maintenance and LT Mobile Maintenance Service-MCSU.
Impact of CPI inflation for 2016-17 (upto January 2017) has been
considered in case of expenditure involving ‘Manpower & Vehicle’ for both
HT Line and substation Maintenance and LT Mobile Maintenance
Service-MCSU. The details are shown in Annex 5B. The estimates for
2016-17 has been considered by the Commission for the segment –
‘other than Manpower and vehicle’ for HT Line and substation
Maintenance as Rs.4448 Lakh, for LT Mobile Maintenance Service-
MCSU as Rs.4691.96 Lakh and for the segment ‘Manpower and Vehicle’
for HT Line and substation Maintenance as Rs.12452 Lakh, and for LT
Mobile Maintenance Service-MCSU as Rs.8930.66 Lakh.
iv) For Data Ware-housing the actual annual expenditure has shown a
decreasing trend from Rs.80 Lakh in 2012-13 to 0.4 Lakh in 2015-16. The
Commission likes to maintain the estimation of WBSEDCL at Rs.0.40
Lakh for 2016-17.
v) Back Office Job-This cost arises mainly where there is want of
departmental staff to do official work. The number of personnel on regular
establishment as projected by WBSEDCL through Form 1.17(h) with the
Tariff Petition and subsequently through Memo. No. REG/SERC/MYT 5th
Control Period/29 dated 12.4.2017 in response to the Commission’s
query under Memo. No. WBERC/TP-65/16-17/2478 Dated 28.3.2017 are
14991 at the end of the year 2015-16, 15413 at the end of the year 2016-
17 and 16363 at the end of the year 2017-18. Thus there is a persistent
growth in the number of employees on regular establishment. The
expenditure on Back Office Job as per actuals for previous years
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 102
submitted through Form 1.17(k) has got reduced from Rs.289 Lakh in
2012-13 to Rs.176 Lakh in 2015-16. The reason for estimating
expenditure on Back Office at a higher level of Rs.201 Lakh for 2016-17
and Rs.223 Lakh for 2017-18 has not been justified in the petition
considering the fact that WBSEDCL has implemented ERP across the
organization. . Thus the Commission desires to restrict the estimate for
back Office job for 2016-17 at 2015-16 level at Rs.176 Lakh.
vi) The expenditure on the head of meter reading and bill distribution is
highly sensitive to consumer strength as the rate under the outsourcing
orders are determined per transaction basis. In case of new contract
agreement the likely increase is considered to be largely neutralized by
advantage of economies of scale due to increased consumer strength as
well as the process of such out-source activity which will become more
organized and efficient with the passage of time. In spot billing
mechanism, both meter reading and handing over the bill to consumer is
done in a single instance to reduce the transaction cost. This has to play
a major role in cost control in this head. In 2015-16 there is an
expenditure increase of 42.95 % in relation to 2014-15 while the
consumer growth in the same period was 8.35%.The CPI index during
2015-16 had a downward trend in relation to 2014-15. Thus for the
purpose of estimation, 2015-16 has not been considered as appropriate
base. Accordingly the estimated expenditure of 2016-17 has been
computed by the commission by giving effect of escalation of consumer
growth on the basis of CAGR of consumer strength during 2012-13 to
2015-16 and CPI index for the year 2015-16 and 2016-17 on the
considered base year 2014-15. Accordingly the estimated expenditure on
this head as computed by the Commission comes to Rs.9517.77 Lakh.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 103
vii) The expenditure on the head of collection franchisee is highly sensitive to
consumer strength as the rate under the outsourcing orders are per
transaction basis. In case of new contract agreement the likely increase is
considered to be neutralized by advantage of economies of scale due to
increased consumer strength as well as the process of such out-source
activity which is to become more organized and efficient with the
passage of time. Thus the estimated expenditure of 2016-17 has been
computed by the commission after factoring escalation of consumer
growth @ CAGR upto during 2013-14 to 2015-16 over the actual
expenditure in 2015-16 on this head alongwith the effect of hybrid index
for 2016-17 as both man and machine cost is involved here. The scope of
work under this head is service charge for collection made through
automated collection kiosk and Tathya Mitra Kendra .Thus the estimated
expenditure comes to Rs.1688.64 Lakh.
viii) Security Expenses-It is seen from the data furnished in Form1.7 (k) that
the expenditure on this head shows a positive growth during the period
2013-2014 to 2015-2016 as Rs.2581 Lakh, Rs.2878 lakh and Rs.2995
Lakh respectively while the data for 2012-13 is to the tune of Rs.3797
Lakh. On further examination of the actuals for the previous years as
stated above it shows that in relation to 2012-13 in 2013-14 there is a
downward trend to the tune of 32% and from 2013-14 to 2014-15 there is
an upward growth to the tune of 11.51 % and in next year 2015-16 there
is a growth of 4.06% vis-a-vis 2014-15. It appears that there is an overall
downward trend in expenditure upto 2015-16 vis-a-vis 2012-13. Against
the above trend of actual expenditure WBSEDCL estimated a growth in
expenditure in 2016-17 to the tune of 12.39% in relation 2015-16. Security
expenses are directly related to setting up new establishments. On the
basis of projected growth of Customer Care Center and Division Office
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 104
furnished by WBSEDCL in Annexure IV of the Memo. No. REG/SER/MYT
5th Control Period/29 Dt.12.4.2017 against the query of the Commission
vide Memo. No. WBERC/TP-65/16-17/2478 dated 28.03.2017, there is a
Projection for establishment for 8 nos. Customer Care Centers only in
2016-17. Thus it is evident that there is a disconnect of expense on this
head vis-a-vis growth of establishment. While considering estimates for
2016-17 ,it was observed that no break up between the cost segments of
‘Manpower related’ and ‘Other than Manpower’ was available in the
petition. Such break-up was however available in the Annual Accounts for
the years 2012-13, 2013-14, 2014-15 . Accordingly, the average ratio of
expenditure for these three years were applied to derive the segregated
actuals for the year 2015-16 alongwith WBSEDCL claims for 2016-17
and 2017-18. Additional impact due to increase in establishments as
mentioned earlier has been considered as 0.25% for each 1% increase in
distribution line length (DLL) both in case of the segments of ‘Manpower
related’ and ‘Other than Manpower’. The effect of Hybrid inflation for
2016-17 has been considered by the Commission for the segment ‘Other
than Manpower’ in respect of Security Expenses and accordingly the
amount comes to Rs.375 Lakh for 2016-17. The effect of CPI inflation for
2016-17 has been considered by the Commission for the segment
‘Manpower related’ in respect of Security Expenses and accordingly the
amount comes to Rs.2793 Lakh for 2016-17. The details are at Annex 5B.
During truing up in APR WBSEDCL shall come up with all relevant
information and documents to justify their claim of expenditure on security
head. WBSEDCL is directed to classify the cost of Security expenses
between Manpower and Other than Manpower in line with Regulation
2.5.5 of the Tariff Regulations, as amended while submitting the APR for
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 105
the year 2017-2018 in line with the classification stated in Para
5.3.1(d)(iii) above.
ix) Insurance charges- the expenditure on this head shows an erratic trend.
The expenditure for 2012-13 is Rs.370 Lakh while in subsequent years
upto 2015-16 is Rs.711 Lakh, Rs. 555 Lakh and Rs. 808 Lakh
respectively and the estimated figure is Rs.955 Lakh for 2016-17 as
furnished by WBSEDCL. However the Commission considered the CAGR
of the period 2012-13 to 2015-16 to arrive at the estimated amount for
2016-17. Such estimation of the Commission was restricted to the
estimated amount provided by the WBSEDCL. The estimated amount
accordingly comes to Rs.955 Lakh.
x) In the case of other different elements of Operation and Maintenance
expenditure and also Franchise Cost the Commission made estimation
for 2016-17 considering growth of the sensitivity parameter and related
price index for 2016-17 as presented in Annex 5B . In respect of Rent and
Auditor Fees volume growth has been factored considering additional
impact due to increase in establishments of WBSEDCL on the actual
expenditure of 2015-16 . Such additional impact due to increase in
establishments and related allied costs has been considered as 0.25% for
each 1% increase in distribution line length (DLL). In respect of Repair
and Maintenance, the additional impact has been considered with respect
to increase in Distribution Line Length (DLL) . In respect of Legal charges,
Other A&G Expenses and Franchise Cost the volume parameter has
been considered based on CAGR of consumer strength during 2013-14 to
2015-16. The inflationary impact has been considered based on hybrid
inflation for 2016-17 (upto January 2017) for Repair and Maintenance,
Rent, Auditor Fees, Legal charges, and A&G Expenses and on CPI
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 106
inflation for Franchisee Cost. Such estimation of the Commission was
restricted to the estimated amount provided by the WBSEDCL in case of
Repair & Maintenance and Franchisee Cost. On such consideration the
estimated values are for Repair and Maintenance 30872 Lakh, Rent Rs
1191 Lakh, Auditor’s Fees Rs.206 Lakh, Legal Charges Rs.587.40 Lakh
& Other Admin and General Rs.12596.92 Lakh. In the case of Franchise
Cost the amount estimated by the Commission is Rs.640 Lakh.
xi) Rates and Taxes for the purpose of determination of ARR are statutory in
nature and it also comprises Municipal Taxes alongwith other taxes
accrued as invoiced while procuring a product or service relatable to
revenue expenditure only. It is observed from the actual for the years
2013-14 to 2015-16 that there has been a CAGR of 36% in the
expenditure for Rates & Taxes. Commission has also taken note of the
fact that a new tax framework of GST has been introduced w.e.f 1st July,
2017. Impact of such new tax framework will only be visible at the end of
2017-18. Hence any estimation following past trend of expenditure
covering a period range may not lead to a realistic estimation.
Considering the above, Commission decides to take the actual of 2015-16
as the estimated amount for 2016-17. The estimated value comes to 7678
Lakh for 2016-17. It is a matter of fact that any tax incidence arising out of
procurement of any goods or services is associated with the base value of
such goods and services and following which, the invoice which is raised
by the vendor comprises of the base value and the tax incidence. This
invoice forms the voucher as basic evidence in such financial transaction
involving expenditure towards procurement of goods and services which
is also considered as evidence in books of Accounts and accounted for
accordingly. So, any review or assessment of such expenditure for
procurement of goods and services whether actually incurred as in APR
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 107
or estimated as in ARR cannot be done excluding the tax incidence.
Accordingly, it is directed that while assessing APR for 2017-18 Tax
incidence wherever associated with any procurement of goods and
services recorded in the books of accounts on the strength of invoice shall
be considered under the specific respective expenditure head with which
it is associated. Accordingly WBSEDCL, while submitting APR for 2017-
18, shall furnish amount incurred towards tax associated for procurement
of goods and services separately in the respective expenditure head
against which it has been incurred and submit the same under the head
of such specific head of expenditure with which such tax is associated.
Such taxes related to procurement of goods and services, shall not be
considered under the head of Rates & Taxes while assessing Rates &
Taxes for APR 2017-18. Instead it will be considered in the respective
expenditure head for which it has been incurred while assessing the
particular expenditure incurred under that head in the APR 2017-18.
Such Tax incidence for GST or any other tax, whenever arises out of any
procurement of goods and services through a common invoice involving
the basic value of the goods and service alongwith related tax incidence
shall also be considered by the Commission in the ARR in the same
manner as explained above next time onwards. Accordingly, WBSEDCL
shall also come up with list of such Rates & Taxes showing the specific
heads of expenditure as proposed to be incurred against which such
GST/Tax is associated while submitting ARR for the next Tariff period. .
xii) In the case of Call Center (ZCC/RCC) the Commission considered the
capacity growth with respect to the increase in Consumer Strength (CS)
since such expenditure is directly relatable to increase in number of
consumers. While considering estimates for 2016-17 ,it was observed that
no break up between the cost segments of ‘Manpower related’ and
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 108
‘Other than Manpower’ was available in the petition and the Annual
Accounts for the years 2012-13, 2013-14, 2014-15 and 2015-16.
Accordingly, the methodology followed in case of Security Expenses has
been followed here. The effect of Hybrid inflation for 2016-17 has been
considered by the Commission for the segment ‘Other than Manpower’ in
respect of Call Center Expenses. Such estimation of the Commission was
restricted to the estimated amount provided by the WBSEDCL.
Accordingly the amount comes to Rs.313 Lakh for 2016-17. The effect of
CPI inflation for 2016-17 has been considered by the Commission for the
segment ‘Manpower related’ in respect of Call Center Expenses. Such
estimation of the Commission was restricted to the estimated amount
provided by the WBSEDCL. Accordingly the amount comes to Rs.2307
Lakh for 2016-17. The details are at Annex 5B. During truing up in APR
WBSEDCL shall come up with all relevant information and documents to
justify their claim of expenditure on Call Center head. WBSEDCL is
directed to classify cost of Call Center between Manpower and Other than
Manpower in its APR petition for 2017 – 2018 in line with the observation
stated in paragraph 5.3.1(d)(iii) above.
e) Where the past CAGR of expenditure of any above referred elements for the
fourth control period (2014-15 to 2016-17) is lesser than the concerned
inflation rate as provided in table 5A in such case in line with CERC’s
principle 110% (an additional 10% margin over actual growth rate) of such
growth rate is considered as the annual escalation rate for 2017-18 for the
following reasons:
i) to ensure the interest of stakeholders in a more better way from the point
of view of availability considerations of the network asset and different
services;
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 109
ii) to provide a comfort to WBSEDCL in carrying out O&M of the assets by
extending an additional insulation against uncertainty arising out of
increased expenditure for any unforeseen reason.
It is to be noted that for the said period the expenditure considered for 2016-
17 is estimated one as derived by the commission based on principles as
discussed before for every item mentioned hereinbefore where actual figures
for 2013-14 to 2015-16 has been taken in general. In certain cases the CAGR
for different period has also been considered where Commission finds that
such decision will provide more rational and better accuracy in the projected
admitted cost.
f) Where the projected expenses by WBSEDCL are less than the estimated
value of 2016-17 and/or the actual value of 2015-16 in such case no
escalation is being allowed for fifth control period 2017-18 and WBSEDCL’s
projection is considered as admitted figure.
g) Where the past data show irrational/asymmetric character in such case
Commission, by applying due prudence, has considered an appropriate
escalation rate which is discussed in relevant portions.
h) Where annual escalation rate or CAGR of past period crosses the concerned
inflation rate of the said past period in such case escalation rate for projected
expenditure due to business volume increase is computed from past trend by
reducing it with the concerned inflation rate of the relevant past period and
that has been explained in the relevant portions. In such case the annual
escalation rate for 2017-18 are as follows:
Annual Escalation Rate (%) for any ensuing year = A+ R × BGR + Ad_F
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 110
Where A = Inflation rate (%) based on CPI or WPI or hybrid
(WPI+CPI) index as applicable for the fixed
charge element.
R = Ratio of percentage annual increase in
expenses in the past period and percentage
increase in business volume parameter during
the same period.
BGR = Projected growth rate (%) for the ensuing year
of the business volume parameter to which the
fixed charge element under consideration is
sensitive.
Ad_F = Additional float in % as decided by commission
to provide insulation against uncertainty in
projected inflation or business volume growth.
For such annual escalation rate calculation the annual increase (%) in
expenses as required for calculation of R is decided by commission by taking
the lowest positive CAGR value from among CAGR of 2015-16 to 2016-17
(i.e., annual increase rate) or CAGR of 2014-15 to 2016-17 or CAGR of 2013-
14 to 2016-17 subject to different aspects considering rationality or level of
asymmetric character of past data as has been explained in the relevant
portion. However wherever R on computation is found to be higher than one
then in such case R is considered as not more than 1 as Commission is of
the opinion that rate of increase in expenses due to business volume growth
cannot surpass the rate of increase in business volume parameter unless
there is any specific reason which can be established by the licensee.
Similarly when R is found to be a value between 0.5 and 1 then also in
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 111
ensuing year annual escalation rate is further reduced by a small quantum
with an objective of gradual improvement in efficiency of the licensee in
expenditure control by utilizing different resources in a more effective
manner.
Where necessary while computing additional expenditure represented by
(R×BGR) of any element of fixed charge due to increase in business volume
that additional expenditure is modified in a reasonable and rational manner
after taking the impact of above mentioned sensitivity parameter on the
additional expenditure. Details of such modification and any other specific
consideration are illustrated in relevant portion where each element of fixed
charge is dealt with. Additional float of 0.5% has been considered to cover
any expenditure hike due to unforeseen reasons.
i) In line with the principle adopted in the tariff order of WBSEDCL for third and
fourth control period, Commission decides that for the ARR determination in
the tariff order of fifth control period 2017-18 the impact of increase in
business volume on different sub-heads/ heads will also be considered from
the point of sensitivity of the head/sub-heads to certain business volume
parameter. For such purpose in the business process of WBSEDCL there are
two important business volume parameters such as Distribution line length
(DDL) in Circuit Kilometer (CKM) and Consumer strength (CS) expressed as
nos. of consumers. Different elements of fixed charge elements are sensitive
to either of the above two parameters. The table 1 under Annexure 5B shows
the concerned business volume parameter sensitivity against different
elements of the fixed charges.
j) For consumer strength the actual and projected data submitted through
Memo. No. REG/SERC/MYT 5th Control Period/29 dated 12.4.2017 by
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 112
WBSEDCL against the query of WBERC against Memo. No. WBERC/TP-
65/16-17/2478 Dated 28.3.2017 has been taken. The data for distribution line
length in CKM for 2012-13 and 2013-14 has been obtained through Memo.
No. PTR/SERC/APR2013-14/953 Dated 10.8.2015 against the query of the
Commission against Memo. No. WBERC/FPPCA-70/14-15/1122 Dated
11.3.2015 and for the CKM for 2014-15 and 2015-16 the data furnished by
WBSEDCL through Memo. No. REG/SERC/MYT 5th
Table III
Control Period/120
dated 3.7.2017 against the query of the Commission against Memo. No.
WBERC/TP-65/16-17/2478 Dated 28.3.2017 has been used in this Tariff
Order. Since WBSEDCL failed to provide/project data for 2016-17 and 2017-
18 in the same Memo. No dated 3.7.2017 the CAGR of Line growth for the
period 2013-14 to 2015-16 showing consistent growth at 5.50% has been
considered based on yearly increase as shown below:
Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Consumer Strength (no.) 12096209 13686767 15103459 16364129 17408826 18343320Increase(%) in Consumer strength 13.15 10.35 8.35 6.38 5.36Distribution line length in CKM 408417 492046 522854 547653 575035.65 603787.43Increase(%) in line length 20.48 6.26 4.74 5.00 5.00
In pursuance to regulation 8.1 of the Tariff Regulations while projecting the
above figure following considerations have been taken:
� The value related to 2016-17 on distribution line length parameters has
been estimated by using the CAGR of growth on this parameter during
the period 2013-14 to 2015-16 on the submitted data of 2015-16.
During truing up in Annual Performance Review (APR) of the above ensuing
year of 2017-18 such projected distribution line length in CKM and Consumer
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 113
Strength in number as given in table III shall be considered as the basis
against which the expenditure has been admitted during concerned tariff
order and accordingly truing up will be taken up subject to the conditions as
mentioned in paragraph 5.3.7.
k) For computation of projected expenditure by the Commission on different
heads for 2017-18 the base expenditure over which the above escalation
rates are applied has been considered on the estimated expenditure of 2016-
17 made by WBSEDCL and duly modified in some elements by the
Commission as explained in paragraph (e) to (h) above. This is being done
as the application of tariff was submitted before the end of 2016-17 and is not
likely to have perfect accuracy with respect to actual expenditure.
l) Based on the above principle the projected expenditure on above mentioned
different elements of fixed charges for 2017-18 has been computed and then
compared with the claimed amount of WBSEDCL for the said year and
whichever is lower is being admitted in this tariff-order.
m) The recent trend of the distribution loss and AT& C losses as provided by
WBSEDCL is as follows:
PERFORMANCE/PROJECTED PERFORMANCE TREND OF WBSEDCLPARAMETERS UNIT 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Distribution loss in % % 25.40 27.96 27.60 27.74 25.83 17.50
AT & C loss in % % 31.56 30.51 29.95 29.84 27.31 19.15
The Commission feels that WBSEDCL is required to improve their overall
performance where losses due to technical reasons cannot be a major issue
as for the last few years, since inception of APDRP, lot of technical
intervention has been done through the above and RADPRP projects to
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 114
reduce the technical losses. In the background of such initiatives it is natural
that WBSEDCL must have taken adequate technical measures in rural
electrification programme besides trying to keep the technical losses within a
reasonable limit so that normative target of WBSEDCL‘s distribution loss
could be achieved. For the last few years the Commission has approved
expenditure with reasonable rate of increase but without any tangible gain as
seen from the last few years’ distribution and AT&C losses. The estimation of
WBSEDCL for 2016-17 and especially the projection of 2017-18 appears to
be very much optimistic. WBSEDCL need to utilize the resources optimally in
an economical manner minimizing wastes and superfluous expenditure
without compromising quality in any front to attain the targets to be pursued
for 2017-18 and such matter will be taken up during truing up. WBSEDCL
shall take appropriate measures to contain the future retail tariff at reasonable
rate. However in this tariff order after analyzing the different escalation rate
computed for activities which has direct impact on distribution & AT&C loss
such as repair maintenance and related controllable heads as line and
substation maintenance (except manpower & vehicle hiring cost)) , meter
reading and bill distribution function, whenever it is found that the computed
escalation rate by WBSEDCL is at sub-inflationary level or at a meager level
of inflation then Commission provided an additional float to provide a comfort
to WBSEDCL to meet unforeseen exigencies while operating the distribution
network ensuring reduction of distribution losses and AT&C losses.
WBSEDCL shall also take into account that in future such type of comfort
may not be further extended as simultaneous increase in distribution loss /
AT & C loss as well as continuous increase in expenditure in repair
maintenance related heads is to be treated as wasteful and therefore to be
pruned accordingly.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 115
5.3.2 Operation and Maintenance (O&M) Expenses :As per regulation 5.7 of the Tariff Regulation the components of Operation and
Maintenance (O&M) expense are as follows:
i) Repair & Maintenance Expenses (R & M)
ii) Administrative and General Expenses which are composed of followings
- Rent and lease charges
- Legal charges
- Auditor’s expenses, which include auditor’s fees, auditor’s expenses and
payment to auditors in any other capacity or for any work which is
necessary to be got done from them and audited.
- Consultancy charges for work which cannot be done in-house or is
uneconomical in doing in-house or is essential to be done from outside
sources except payment to Auditors.
- Other expenses necessary and arising from and ancillary or incidental to
the business of electricity except penalty etc. levied under this Act or any
other Act.
5.3.2.1 Operation and maintenance (O&M) Expenses for generation:
(a) Regulation 2.8.6.1 of the Tariff Regulations, as amended inter-alia specifies
that from 2017-18 norms of O&M expenses for the coal fired and hydro
power station which are under operation or/ and under construction will be
provided in the tariff order of the 1st ensuing year of any control period
applying average inflation rate of last control period on the basis of actual
expenditure of the last available complete year of that last control period but
subject to further condition that Commission may change such basis on
detailed scrutiny after taking into account the application of tariff or APR
where applicable and objections and suggestions on it.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 116
(b) In the note under Form 1.17 submitted in volume-II-B of the Tariff petition
WBSEDCL mentioned that they have claimed the O&M expenses for the
generating stations for 2015-16 at normative level as allowed in ARR. In
absence of the actual figures for O&M expenses for generating stations
during 2015-16, the last available complete period, Commission finds it
suitable to determine the norms of O&M expense for the hydro generating
stations of WBSEDCL for 2017 – 2018 considering an increase of 5%
(CAGR of O&M norms from 2014-15 to 2016-17) over the norms of 2016-
17.
(c) In the petition WBSEDCL claimed O&M Cost of Rs. 398 Lakh as 7 Lakh /
MW with escalation of 5.72% for 55 MW projected Solar Power for 2017-18
as per Renewable Energy Tariff Order Dtd.30.3.2016 .For Tariff Order
2017-18 the Commission does not like to admit any O&M expenditure w.r.t
Solar Plants as these are likely to be covered under Warranty during this
period. At the time of truing up WBSEDCL is directed to come up with the
actual audited figures of expenditure with necessary contract details.
Commission will decide during truing up in APR the amount admissible, if
any, based on the documents submitted by WBSEDCL as per the
provisions of Tariff Regulations.
(d) Accordingly Commission admits an amount of Rs. 4942.59 lakh as
operation and maintenance expenditure for generating stations of
WBSEDCL. The details are shown below:
Stations Installed capacity
Admitted O&M Cost per MW Admitted O&M cost2 0 1 7 – 2 0 1 8 2 0 1 7 – 2 0 1 8
Name of HEP in MW Rate per MW Rs LakhRammam 51 11.21 571.83Jaldhaka HEP 44 16.14 710.12PPSP 900 2.49 2239.47Small Hydro 89 15.97 1421.16Total hydro 1084 4942.59
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 117
Solar 32.5 0Total 4942.59
5.3.3 O&M Expenses for Distribution: Based on the laid down principle in paragraph
5.3.1 above following different sub-heads of O&M function in distribution are
determined. In this context table 2 in Annexure 5B may be referred to for the past
trend of expenditure.
a) Repair & Maintenance (R&M) Expenditure and Rent and Auditor’s Fees:For these elements, the past escalation rate is CAGR of 2015-16 to 2016-17
being the lowest positive among the three relevant CAGR for respective
periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17) ..
The hybrid inflation for the same period i.e. 2015-16 to 2016-17 has been
considered to give effect to the formulation as explained at para 5.3.1.h
above. Such CAGR of expenditure being higher than the corresponding
inflation for the relevant period, the inflation rate has been considered to be
factored with CAGR of volume growth i.e. Distribution Line Length (DLL) as
considered for 2017-18. An additional float is also considered as 0.5% in
order to provide insulation against uncertainty of any expenditure hike due to
any unforeseen reason. Then by using such escalation rate in the
methodology as mentioned in sub-paragraph (h), (k) and (l) of Paragraph
5.3.1 the values found for ensuing year of 2017-18 is given in Table I. While
applying the methodology under sub-paragraph (h) of Paragraph 5.3.1 the
additional float is considered as 0.5% in order to provide insulation against
uncertainty in any expenditure hike due to any unforeseen reasons and also
to cover the additional margin as mentioned in sub-paragraph (e) of
paragraph 5.3.1. The admitted tariff 2017-18 for R&M expenditure
accordingly comes to Rs.32423.72 lakh, for Rent Rs.1250 lakh and Auditor’s
Fees Rs.215.86 Lakh.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 118
b) Other administrative and General Expenses: For this head of expenditure,
the lowest positive CAGR for the period 2014-15 to 2016-17 has been
selected being the lowest positive among the three relevant CAGR for
respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to
2016-17). .. The hybrid inflation for the same period i.e. 2014-15 to 2016-17
has been considered to give effect to the formulation as explained at para
5.3.1.h above. Such CAGR of expenditure being higher than the
corresponding inflation for the relevant period, the inflation rate has been
considered to be supplemented with CAGR of volume growth i.e. Consumer
Strength (CS) as considered for 2017-18. An additional float is also
considered as 0.5% in order to provide insulation against uncertainty of any
expenditure hike due to any unforeseen reason. Then by using such
escalation rate in the methodology as mentioned in sub-paragraph (h), (k)
and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 are
given in Table I..Accordingly, the admitted values found for ensuing year of
2017-18 is given in Table I which comes to Rs.12985.06 Lakh This being a
controllable item the matter in detail will be taken up alongwith similar cases
during truing up. For better scrutiny over the issue the WBSEDCL is directed
to present element wise audited detailed expenditure against this broad head.
c) Legal Charges: For this element, CAGR of 2015-16 to 2016-17 has been
selected being the lowest positive among the three relevant CAGR for
respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to
2016-17). The hybrid inflation for the same period i.e. 2015-16 to 2016-17
has been considered to give effect to the formulation as explained at para
5.3.1.h above. Such CAGR of expenditure being higher than the
corresponding inflation for the relevant period, the inflation rate has been
considered to be supplemented with CAGR of volume growth i.e. Consumer
Strength (CS) as considered for 2017-18. An additional float is also
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 119
considered as 0.5% in order to provide insulation against uncertainty of any
expenditure hike due to any unforeseen reason. Then by using such
escalation rate in the methodology as mentioned in sub-paragraph (h), (k)
and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 are
given in Table I. The admitted value for Legal Charges comes to Rs.619.09
Lakh. This being controllable item the matter in detail will be taken up
alongwith similar cases during truing up. Detailed classification of cases and
related cost involved and measures taken to prevent avoidable litigation may
please be submitted with APR Petition with last 5 years data.
d) Thus the admitted expenditure under the heads of Repair & Maintenance
Expenditure and A&G Expenses are as follows (for detailed computation vide
Annex 5B):
Rs. in lakh
5.3.4 Other Items:
a) Expenditure for Lease Rental Line: For this element annual escalation rate
of 2015-16 to 2016-17 has been selected being the lowest positive among
the three relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15
to 2016-17 and 2015-16 to 2016-17). The WPI inflation for the same period
i.e. 2014-15 to 2016-17 has been considered to give effect to the formulation
as explained at para 5.3.1.h above. Such CAGR of expenditure being higher
than the corresponding inflation for the relevant period, the inflation rate has
Table 5.3.3 -I
Sl No.
Particulars As Claimed by WBSEDCL As Admitted by WBERC2017-18 2017-18
1. Repair & Maintenance Charges 32831.00 32423.722.i. Rent 1604.00 1250.002.ii Auditor’s Fees 277.00 215.862.iii Legal charges 733.00 619.092.iv Other A&G expenses 15733.00 12985.063. A&G expenses (2 i+2ii+2 iii+2iv) 18347.00 15070.01
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 120
been considered to be supplemented with CAGR of volume growth i.e.
Distribution Line Length (DLL) as considered for 2017-18. An additional float
is also considered as 0.5% in order to provide insulation against uncertainty
of any expenditure hike due to any unforeseen reason. Then by using such
escalation rate in the methodology as mentioned in sub-paragraph (h), (k)
and (l) of Paragraph 5.3.1 the value for 2017-18 has been found for ensuing
year of 2017-18. It is found from WBSEDCL reply under the Memo. No
REG/SERC/MYT 5th
b) Expenditure for Complaint Management Mechanism: The CAGR of
expenditure under complaint management is negative for all the periods
under fourth control period as computed by WBERC and shown at table 2 of
Anne 5B. As such in line with 5.3.1 (g) (e) (k) and (l) the amount admitted is
Rs.297.98 Lakh. This element will be considered as controllable factor during
truing up in fifth control period 2017-18 as the initial period required after
introduction of such scheme is over and the fluctuations have been stabilized.
Control Period/ 29 Dt.12.4.2017 that during 2015-16, 9
nos. Customer Care Center and 3 nos. Divisional Office and 2016-17, 8 nos.
Customer Care Center with no addition of Divisional Office and 2017-18, 16
nos. Customer Care Center and 2 nos. Divisional Office were added or to be
added to the existing WBSEDCL System .Thus there is marginal growth in
the head of expenditure as envisaged. Accordingly, the value admitted for
2017-18 is Rs.2225.60 lakh and provided in the table-1 of Annex 5B. While
submitting APR application, summarized statement of the lease rental bill that
has been paid for primary and secondary lease lines and provision made (In
detail) are to be submitted along with names of location that has been
covered through lease line records.
c) Expenditure for Rates and taxes: For this element the past escalation
trend has been taken from CAGR of 2014-15 to 2016-17. CAGR for the
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 121
period 2014-15 to 2016-17 has been selected being the lowest positive
among the three relevant CAGR for respective periods (2013-14 to 2016-17,
2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for the
same period i.e. 2014-15 to 2016-17 has been considered to give effect to
the formulation as explained at para 5.3.1.h above. Such CAGR of
expenditure being higher than the corresponding inflation for the relevant
period, the methodology as mentioned in sub-paragraph (h), (k), (l) of
Paragraph 5.3.1 has been followed and the admitted values found for 2017-
18 comes to Rs. 8064.35 Lakh and given in Table 1 of Annex 5B.
d) Expenditure for Insurance: The trend of actual expenditure under the head
in previous years is very erratic. Here, the CAGR for the period 2013-14 to
2016-17 has been selected being the lowest positive among the three
relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-
17 and 2015-16 to 2016-17). The hybrid inflation for the same period i.e.
2013-14 to 2016-17 has been considered to give effect to the formulation as
explained at para 5.3.1.h above. Such CAGR of expenditure being higher
than the corresponding inflation for the relevant period, the inflation rate has
been considered to be supplemented with CAGR of volume growth i.e.
Distribution Line Length (DLL) as considered for 2017-18. The methodology
as mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 has been
followed. Accordingly the admitted amount for 2017-18 has been found out as
Rs.1003.17 Lakh and provided in the table 1 of Annnex5B.
e) The admitted amount in the ensuing years of the fifth control period 2017-18
for the above four uncontrollable expenditure in comparison to the claim of
WBSEDCL has been given in the table 5.3.4-I below (For detailed
computation vide Annex 5B):
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 122
Sl No.
Expenditure Head As Claimed by WBSEDCL
As admitted by WBERC
2017-18 2017-181. Lease Rental Line 6123 2225.602. Complaint Management Mechanism 351 297.983. Rates & Taxes 14407 8064.354. Insurance 1128 1003.17
5.3.5 Outsourcing Expenditure (except manpower and vehicle hiring Cost): Under
this head the expenditures which are controllable in nature have been
considered. Under this head there are a number of elements for which the
expenditure for 2017-18 has been computed by the Commission as detailed out
below:
a) Expenditure for Data Ware Housing and Franchisee Cost :
(i) Data Warehousing: For data ware-housing the CAGR of Expenditure is
negative for the period 2013-14 to 2016-17 and 2014-15 to 2016-17 while the
CAGR for the Period 2015-16 to 2016-17 is zero. This signifies that while in
the earlier period the expenditure for Data warehousing, being the cost of
maintaining data repository for call center and other consumer service as
stated by WBSEDCL in Form 1.17(k) submitted with the Tariff Petition, was
higher, gradually the expenditure on this head has been reduced. As such
Commission finds it suitable to admit the amount of Rs 0.40 lakh under this
head as per the actual expenditure during 2015-16.
(ii) Franchisee cost: CAGR of 2015-16 to 2016-17 has been selected being
the lowest positive among the three relevant CAGR for respective periods
(2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17). The CPI
inflation for the same period i.e. 2015-16 to 2016-17 has been considered to
give effect to the formulation as explained at para 5.3.1.h above. Such CAGR
of expenditure being higher than the corresponding inflation for the relevant
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 123
period, the inflation rate has been considered to be supplemented with
CAGR of volume growth i.e. Consumer Strength (CS) as considered for
2017-18. The admitted amount in line with the principle laid down in sub-
paragraph (h),(k) and (l) of paragraph 5.3.1 comes to Rs.674.71 Lakh as
detailed in Annex 5B.
b) Expenditure for Meter Reading & Bill Distribution, Collection franchisee and Line & substation maintenance(excluding Manpower) and LT Mobile Maintenance-MCSU (excluding Manpower), Back Office Job :
(i) Meter Reading and Bill Distribution - Here, the CAGR for the period
2014-15 to 2016-17 has been selected being the lowest positive among the
three relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to
2016-17 and 2015-16 to 2016-17). The CPI inflation for the same period i.e.
2014-15 to 2016-17 has been considered to give effect to the formulation as
explained at para 5.3.1.h above. Such CAGR of expenditure being higher
than the corresponding inflation for the relevant period, the inflation rate has
been considered to be supplemented with CAGR of volume growth i.e.
Consumer Strength (CS) as considered for 2017-18. The methodology as
mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1. has been
followed. Accordingly the admitted amount for 2017-18 has been found out as
Rs.10034.35 Lakh
(ii) HT Line and Substation Maintenance (other than Manpower and vehicle): For this head of expenditure, the CAGR for the period 2014-15 to
2016-17 has been selected being the lowest positive among the three
relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-
17 and 2015-16 to 2016-17). The hybrid inflation for the same period i.e.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 124
2014-15 to 2016-17 has been considered to give effect to the formulation as
explained at para 5.3.1.h above. Such CAGR of expenditure being higher
than the corresponding inflation for the relevant period, the inflation rate has
been considered to be supplemented with CAGR of volume growth i.e.
Distribution Line Length (DLL) as considered for 2017-18. An additional float
is also considered as 0.5% in order to provide insulation against uncertainty
of any expenditure hike due to any unforeseen reason. Then by using such
escalation rate in the methodology as mentioned in sub-paragraph (h), (k)
and (l) of Paragraph 5.3.1 the values found for ensuing year of 2017-18 is
given in Table I. Accordingly, the admitted values found for ensuing year of
2017-18 is given in Table I which comes to Rs. 4671.72 Lakh for HT Line and
Sub Station Maintenance (excluding Manpower).
(iii) LT Mobile Maintenance-MCSU (excluding Manpower & Vehicle)- As
noted in subparagraph (d)(iii) of paragraph 5.3.1 WBSEDCL authority has
failed to capture data properly in Manpower and Other than Manpower
heads. As a result CAGR of expenditure on this head for the fourth control
period could not be computed. For this head of expenditure, the CAGR for
the period 2015-16 to 2016-17 has been selected being the lowest positive
among the three relevant CAGR for respective periods (2013-14 to 2016-17,
2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for the
same period i.e. 2015-16 to 2016-17 has been considered to give effect to
the formulation as explained at para 5.3.1.h above. Such CAGR of
expenditure being higher than the corresponding inflation for the relevant
period, the inflation rate has been considered to be supplemented with CAGR
of volume growth i.e. Consumer Strength (CS) for 2017-18. An additional
float is also considered as 0.5% in order to provide insulation against
uncertainty of any expenditure hike due to any unforeseen reason. Then by
using such escalation rate in the methodology as mentioned in sub-
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 125
paragraph (h), (k) and (l) of Paragraph 5.3.1 the values found for ensuing
year of 2017-18 is given in Table I..Accordingly, the admitted value found for
ensuing year of 2017-18 is given in Table I which comes to Rs. 4945.05
Lakh.
(iv) Collection Franchisee- For this head of expenditure, the CAGR for the
period 2015-16 to 2016-17 has been selected being the lowest positive
among the three relevant CAGR for respective periods (2013-14 to 2016-
17, 2014-15 to 2016-17 and 2015-16 to 2016-17). The hybrid inflation for
the same period i.e. 2015-16 to 2016-17 has been considered to give
effect to the formulation as explained at para 5.3.1.h above. Such CAGR
of expenditure being higher than the corresponding inflation for the
relevant period, the inflation rate has been considered to be
supplemented with CAGR of volume growth i.e. Consumer Strength (CS)
for 2017-18. An additional float is also considered as 0.5% in order to
provide insulation against uncertainty of any expenditure hike due to any
unforeseen reason. Then by using such escalation rate in the
methodology as mentioned in sub-paragraph (h), (k) and (l) of Paragraph
5.3.1 the values found for ensuing year of 2017-18 are given in Table I.
The admitted amount under this heads comes to Rs. 1779.73 Lakh
(v) Expenditure for Back office job: For this element the CAGR of
expenditure for the period 2015-16 to 2016-17 has been considered
showing the recent trend as discussed in subparagraph (d) (v) of
paragraph 5.3.1. This period also includes the expenditure of the recent
actual for 2015-16. On this basis since the escalation rate has been
found to be less than the Hybrid inflation rate for the concerned period
the methodology in subparagraph (e), (k) and (l) of paragraph 5.3.1 has
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 126
been followed for the purpose of projection. The admitted figure comes
to Rs.176.00Lakh.
C. Expenditure on Security Expenses & Call Center (other than Manpower):
(i). Call Center (ZCC/CRC) -(Other than Manpower) : CAGR of 2014-15 to
2016-17 has been selected being the lowest positive among the three
relevant CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-
17 and 2015-16 to 2016-17). The Hybrid inflation for the same period i.e.
2015-16 to 2016-17 has been considered to give effect to the formulation as
explained at para 5.3.1.h above. Such CAGR of expenditure being higher
than the corresponding inflation for the relevant period, the inflation rate has
been considered to be supplemented with CAGR of volume growth i.e.
Consumer Strength (CS) as considered for 2017-18. The admitted amount in
line with the principle laid down in sub-paragraph (h),(k) and (l) of paragraph
5.3.1 comes to Rs.319.96 Lakh as detailed in Annex 5B.
(ii) Security Expenses (Other than Manpower): CAGR of 2015-16 to 2016-
17 has been selected being the lowest positive among the three relevant
CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and
2015-16 to 2016-17). The Hybrid inflation for the same period i.e. 2015-16 to
2016-17 has been considered to give effect to the formulation as explained at
para 5.3.1.h above. Such CAGR of expenditure being higher than the
corresponding inflation for the relevant period, the inflation rate has been
considered to be supplemented with CAGR of volume growth i.e. Distribution
Line Length (DLL) as considered for 2017-18. The admitted amount in line
with the principle laid down in sub-paragraph (h), (k) and (l) of paragraph
5.3.1 comes to Rs.393.80 Lakh as detailed in Annex 5B.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 127
5.3.6 Outsourcing Expenditure (manpower and vehicle hiring Cost): Under
this head there are four number of elements namely, Security expenses, Call
Centre (as per SOP Regulations), HT Line and Substation Maintenance
(Manpower & Vehicle) and LT Mobile Maintenance-MCSU (Manpower &
Vehicle). WBSEDCL has not furnished data for such heads of expenditure
separately under Manpower and Without Manpower. As has been mentioned
above in subparagraph (d) (iii) of paragraph 5.3.1, it is directed to furnish
classified audited data under Manpower and Other than Manpower at the
time of truing up against all this individual heads.
(i) Call Centre (ZCC/CRC)-Manpower Related: CAGR of 2014-15 to 2016-
17 has been selected being the lowest positive among the three relevant
CAGR for respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and
2015-16 to 2016-17). The Hybrid inflation for the same period i.e. 2015-16 to
2016-17 has been considered to give effect to the formulation as explained at
para 5.3.1.h above. The inflation rate being higher than the lowest positive
CAGR of expenditure for 2014-15 to 2016-17 the admitted amount in line with
the principle laid down in sub-paragraph (e),(k) and (l) of paragraph 5.3.1
comes to Rs.2385.78 Lakh as detailed in Annex 5B.
(i) HT Line and Substation Maintenance (Manpower & Vehicle): For this
head of expenditure, the CAGR for the period 2014-15 to 2016-17 has been
selected being the lowest positive among the three relevant CAGR for
respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to
2016-17). The CPI inflation for the same period i.e. 2015-16 to 2016-17 has
been considered to give effect to the formulation as explained at para 5.3.1.h
above. Such CAGR of expenditure being higher than the corresponding
inflation for the relevant period, the inflation rate has been considered to be
supplemented with CAGR of volume growth i.e. Distribution Line Length
(DLL) for 2017-18. An additional float is also considered as 0.5% in order to
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 128
provide insulation against uncertainty of any expenditure hike due to any
unforeseen reason. Then by using such escalation rate in the methodology
as mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the value
found for ensuing year of 2017-18 is given in Table I which comes to
Rs.13081.89 Lakh.
(ii) Security Expenses-Manpower Related: For this head of expenditure,
the CAGR for the period 2014-15 to 2016-17 has been selected being the
lowest positive among the three relevant CAGR for respective periods
(2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to 2016-17). .. The
CPI inflation for the same period i.e. 2014-15 to 2016-17 has been
considered to give effect to the formulation as explained at para 5.3.1.h
above. Such CAGR of expenditure being higher than the corresponding
inflation for the relevant period, the inflation rate has been considered to be
supplemented with CAGR of volume growth i.e. Distribution Line Length
(DLL) for 2017-18. Then by using such escalation rate in the methodology as
mentioned in sub-paragraph (e), (k) and (l) of Paragraph 5.3.1 the value
found for ensuing year of 2017-18 is given in Table I which comes to The
total amount admitted for Security Expenses is Rs.2905.40 Lakh.
(ii) LT Mobile Maintenance-MCSU (Manpower and Vehicle): For this head
of expenditure, the CAGR for the period 2015-16 to 2016-17 has been
selected being the lowest positive among the three relevant CAGR for
respective periods (2013-14 to 2016-17, 2014-15 to 2016-17 and 2015-16 to
2016-17). The CPI inflation for the same period i.e. 2015-16 to 2016-17 has
been considered to give effect to the formulation as explained at para 5.3.1.h
above. Such CAGR of expenditure being higher than the corresponding
inflation for the relevant period, the inflation rate has been considered to be
supplemented with CAGR of volume growth i.e. Consumer growth (CS) for
2017-18. An additional float is also considered as 0.5% in order to provide
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 129
insulation against uncertainty of any expenditure hike due to any unforeseen
reason. Then by using such escalation rate in the methodology as
mentioned in sub-paragraph (h), (k) and (l) of Paragraph 5.3.1 the values
found for ensuing year of 2017-18 is given in Table I which comes to
Rs.9415.01 Lakh. Based on the above discussion the admitted amount in
respect of Outsourcing Expenditure for the ensuing year 2017-18 of fifth
control period has been placed in the table below (For detailed computation
vide Annex 5B).
Rs in lakh
Sl No Expenditure Head
As claimed by WBSEDCL for 2017 -2018 As admitted by WBERC for 2017 - 2018
Excluding Manpower &
vehicleManpower & Vehicle Total
Excluding Manpower &
vehicleManpower &
Vehicle Total
1 HT Line Maintenance and Sub Station
Maintenance4952.00 13698.00 18650.00 4671.72 13081.89 17753.61
2 LT Maintenance 5265.00 9930.00 15195.00 4945.05 9415.01 14360.06
3 Data Ware-housing 0.50 0.50 0.40 0.40
4 Back office Job 223.00 223.00 176.00 176.00
5 Franchisee Cost 703.00 703.00 674.71 674.71
6 Meter Reading & Bill Distribution 12942.00 12942.00 10034.35 10034.35
7 Collection Franchisee 2475.00 2475.00 1779.73 1779.73
8 Security Expenses 460.00 3392.00 3852.00 393.80 2905.40 3299.20
9 Call Center 328.00 2422.00 2750.00 319.96 2385.78 2705.74
TOTAL 27348.50 29442.00 56790.50 22995.72 27788.08 50783.80
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 130
5.3.7 It is to be noted that the estimated expenditure as determined by the
Commission for 2016-17 against any head or subheads as discussed above in
sub paragraph (i) to (ix) of paragraph 5.3.1(d) has been considered as base year
expenditure for those heads for tariff determination purpose. In case any of such
estimated expenditure made by the Commission is found to be less than the
audited actual expenditure for 2016-17 vis-à-vis business volume parameter
increases then the consequential impact on the projected expenditure against
concerned heads/sub-heads for the period 2017-18 will be passed through tariff
in APR of concerned year separately irrespective of whether such item is
controllable factor or uncontrollable factor. During truing up exercise in APR of
the concerned year the estimated expenditure of all the elements of different
heads as mentioned in paragraph 5.3.1 (d) above for 2016-17 are to be
considered as has been incurred against the actual value of the business volume
parameter (i.e., DLL or consumer strength) that has been achieved at the end of
2016-17. In case the actual value of DLL or consumer strength in 2016-17 is
found to be higher than the estimated value that has been considered for 2016-
17 in this tariff order then impact of such enhanced amount will be added to the
projected value of DLL or Consumer strength for the period 2017-18 of the tariff
order to find out the target business volume parameter against the projected
expenditure that has been admitted in the tariff order. On the basis of such
revised targeted business volume parameter the truing up exercise in APR will be
done specially while applying the regulation 2.6.10(v) of the Tariff Regulations.
5.3.8 Total Operation and maintenance Expenses:
Sl No Particulars As Claimed
by WBSEDCLAs Admitted by WBERC
(i) Operation & Maintenance for Generation 5340.00 4942.59(ii) Repair & Maintenance for Distribution 32831.00 32423.72(iii) Administrative & General Expense for distribution 18347.00 15070.01(iv) Lease Rental Line 6123.00 2225.60
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 131
(v) Complaint Management Mechanism 351.00 297.00(vi) Insurance 1128.00 1003.17(vii) Rates & Taxes 14407.00 8064.35(ix) Outsourcing function for Distribution related to O&M
(a) Excluding manpower related cost & hiring of vehicle 56790.00 22995.72(b) Limited to manpower related cost & vehicle hiring cost 27788.08
TOTAL (i) to (ix) 135317.00 114811.22
5.4 Employee Cost:
5.4.1 WBSEDCL has projected the employee cost for 2017-18 as Rs. 151746 lakh. On
this projected cost the Commission has also noted the following submissions of
WBSEDCL.
a) In the back drop of growing consumer strength and augmentation of the
distribution infrastructure, WBSEDCL has planned to augment its
manpower strength during the period from 2016-17 to 2017-18 in order to
ensure smooth execution of the activities pertaining to electricity distribution
with an overall aim to improve the quality of supply to the end users. Such
manpower plan forms the basis of projection of employee expenses of
WBSEDCL of 2016-17 to 2017-18.
The total amount of employee cost projected by WBSEDCL in respect of
own employees on contract in regular establishment for the 2017-18 of the
concerned control period on the basis of Form 1.17(h) and E(T) is
furnished in the table below. As mentioned in such Form 1.17 (h),
employees on contract in regular establishment is included in the cost of
outsourcing.
Year No. of total employees
Amount(Rs. in lakh)
2017-18 16363 151746
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 132
WBSEDCL made the following projection of the no of Employees for the years
2015-16,2016-17 and 2017-18 in the Form1.17(h) submitted with the Tariff
Petition for 2017-18.
For 2015-16 the figure is 14991, for 2016-17 the figure is 15413 nos. as derived
from Annex II of the Reply of WBSEDCL under Memo. No. REG/SERC/MYT 5th
Particulars
Control Period/29 Dated 12.04.2017 and for 2017-18 the figure is 16363 nos. It
may also be noted that for 2017-18 the figure of Recruitment has been
considered as balancing figure in the absence of specific confirmation from
WBSEDCL and on the basis of the said Reply of WBSEDL and declaration in
Form 1.17(h). Average number of employee is shown in the following table:
2015-16 2016-17 2017-18Number of Employee at the beginning of the year 15790 14991 15413Recruitment during the year 1510 1881Retirement during the year 1088 931Number of Employee at the end of the year 14991 15413 16363Average number of employees considered 15391 15202 15888
b) WBSEDCL have considered implementation of the 7th Pay Commission.
c) A 3% growth rate per annum has been considered for the Basic Pay based
on the actual annual increments of the WBSEDCL employees.
d) Other employee expenses are projected in proportion to the manpower
strength.
e) For projection of terminal benefit expenses it has been stated that the
employee terminal benefit expenses has been calculated on the actuarial
valuation of pension, gratuity and leave encashment benefits. As per the
actuarial valuation done on 30th September 2016, the projected pension
and gratuity liability will increase at a CAGR of 3.23% from 2016-17. Hence,
for the purpose of projections, the same growth rate of 3.23% per annum is
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 133
considered by the Commission over the terminal benefit expenses for 2016-
17 to get the figures for FY 18. A 15% increase is considered by WBSEDCL
during 2016-17 over 2015-16. The Commission is not allowing such hike on
projection and will consider during truing up for the year 2017-18.
5.4.2 On the basis of the actuals submitted by WBSEDCL for the year 2015-16 the
estimate submitted by WBSEDCL for 2016-17 has been revised by the
Commission based on the average no. of employees projected for 2016-17
considering necessary hike of 3% in basic and relevant hike for DA etc over
actual of 2015-16 except the point of retirement benefit where the Commission
likes to maintain the 3.23% increase as per their actuarial valuation as noted in
5.4.1(e) above.
5.4.3 For the purpose of projection of employee cost for the year 2017-18, the
Commission likes to proceed considering the average no of employees of 2016-
17 and factoring increment of 3% on basic with DA @139%.alongwith Other
Allowance as the same percentage on basic as found in actual of 2015-16 and
prorating it to the average no of employees of 2017-18. Terminal benefit is given
the same increase of 3.23% as noted in 5.4.1(e) above on the estimate of
WBERC for 2016-17. For the elements of bonus and ex-gratia, LTC, leave
encashment, welfare expense, medical, compensation, GRP Scheme and others
cost per employee has been prorated on average no of employees of 2016-17
applied for Projection of 2017-18.The claim for Liveries and Leave Encashment
for 15 days have been maintained as claimed by WBSEDCL considering
reasonable as per Commission’s projection. For the purpose of capitalization, the
same proportion of capitalization to total cost as observed by WBSEDCL in their
projection for 2017-18 has been accepted by the Commission.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 134
5.4.4 The function wise break up in total of employee cost including terminal benefits
and Director Fees etc. as admitted by the Commission for the year 2017-18 are
as follows (For detailed computation vide Annex 5C).:
Type of Cost 2017-18Generation Distribution Total
Salary and Wages including other staff welfare benefits 3202.07 69720.84 72922.91
Terminal Benefit 2091.05 59246.31 61337.36Total Employee cost 5293.12 128967.15 134260.27
The function wise allocation between generation and distribution is being done
on the basis of same proportion as has been done in the proposal of
WBSEDCL.
5.5 Depreciation:
While examining the Depreciation schedule in Form B against the claim of
WBSEDCL amounting to Rs.69810 Lakh, the Commission observed certain
inconsistencies as –
1. No growth has been shown for Metering Assets since 2016-17 to 2017-18
while there is a projection of consumer growth during the same periods
as-.
2015-16 2016-17 2017-18
Value of Metering Asset (Rs.Lakh)
166251 166251 166251
Consumer strength (No)
16364129 17408826 18343320
2. Generating asset of value Rs.8572 lakh has been shown as fully
depreciated in 2015-16, but the same asset has again been perpetually
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 135
considered in the years 2016-17 and 2017-18 at the time of computing
depreciable asset.
3. There are several casting errors in Form B for respective class of Assets
and corresponding category of depreciation rates besides mismatch
between the rate used for a category of asset and corresponding
depreciation calculated in Form B.
In view of above, the Commission made its own projection for the purpose of
Depreciation as narrated in the following paragraph.
The summation of actual total value of Assets as classified into different
categories of depreciation rates for respective Asset class as on 31.3.2016 for
Rs 21,06,066 Lakhs has been considered as base for the purpose of
calculation of Depreciable Asset base for 2016-17. Addition of assets during
2016-17 for Rs 1,49,655 Lakhs as estimated by WBSEDCL has been
considered while arriving at the total base of depreciable assets in 2016-17 for
the relevant Asset class. In Form B no Asset has been shown as fully
depreciated for 2016-17. The total depreciable asset base thus arrived at for
2016-17 has been segregated into respective asset category based on
depreciation rates applicable to each category of assets in the same
proportion as per WBSEDCL estimation for 2016-17 in Form B. WBSEDCL
has estimated a growth of assetization in 2017-18 which is 83% higher than
2016-17 . In absence of any detailed justification for such projected rate of
assetization, the Commission took the CAGR of actual assetization for the
period 2012-13 to 2015-16 and projected the assetization for 2017-18 based
on the estimate of assetization made by WBSEDCL for the period 2016-17.
Thus the total Depreciable Asset for 2017-18 comes to Rs 24,24,832 Lakhs.
considering addition of fixed assets during 2017-18 for Rs 1,69,111 Lakhs
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 136
which has been segregated into respective asset category based on
depreciation rates applicable to each category of assets as per proportion
derived from WBSEDCL projection for 2017-18 in Form B .In Form B no Asset
has been shown as fully depreciated for 2017-18. Depreciation has been
calculated on the asset base of 2017-18 as arrived at above in the same
proportion as projected by WBSEDCL in Form-B for 2017-18.The rate of
depreciation on grant funded asset for 2015-16 actual has been applied on the
Grant Funded Asset for 2017-18 to arrive at the value of depreciation against
grant funded asset. The amount of depreciation for 2017-18 thus arrived at by
the commission comes to Rs. 68055 Lakh. For detailed computation Table 1
and 2 of Annex 5 D may be seen.
In line with the allocation of depreciation submitted in Form B ,the allocation
comes to as below . Detailed computation is placed at Annex 5D -
Rs. Lakh
Commission, however directs to submit the depreciation details segregated
into depreciation for respective Asset class and Depreciation category as on
the opening Asset Base and on the Asset addition separately during the year
while submitting APR as well as while submitting ARR for the next Tariff
Years.
Sl. No. Particulars 2017-18
1 Generation 13942.002 Distribution 47798.173 Metering Asset 4157.514 Other Assets 2157.32
5 Sub-total (Distribution)
54113.00
Total(1+5) 68055.00
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 137
5.6 Interest on Bonds for Terminal Benefits to Employees:
Under the West Bengal Power Sector Reforms Transfer Scheme, 2007, as
referred earlier, a 8.5% bond fund (2016) has been created for discharging
pension and gratuity liabilities of the erstwhile WBSEB. An amount of Rs.
1530.00 crores of the total bond amounts of Rs. 1800.00 crores has been kept in
the account of WBSEDCL. The annual interest charges on this amount of bonds
in the accounts of WBSEDCL come to Rs. 13005.00 lakh . WBSEDCL in Para
6.7 of their petition claims Rs.10404 Lakh as interest since they projected an
annual repayment of Rs.30600 Lakh from 2017 onwards in 5 installments .The
same is admitted for ascertaining the Aggregate Revenue Requirement (ARR) for
the year 2017-18. The said Rs. 10404 lakh has been allocated as proposed by
WBSEDCL between generating station and distribution system as per following
table:
Rs. in Lakh
Interest on bond related discharging pension & gratuity liabilitiesGeneration Distribution Total
441 9963 10404
5.7 Interest on capital borrowings:
5.7.1 WBSEDCL inherited an amount of Rs. 302200.00 lakh as borrowed capital as on
31st March, 2006 as shown in Schedule – B of the West Bengal Power Sector
Reform Transfer Scheme, 2007 notified by the Government of West Bengal vide
No: 12-PO/III/3R-29/2006 dated 25.01.2007. Out of this amount of Rs.302200.00
lakh, Rs.194800.00 lakh was from the Government of West Bengal carrying
interest @ 8.5%. The balance amount of Rs.107400.00 lakh is from different
financial institutions and Central Government. WBSEDCL has also drawn fresh
loan for different capital works. WBSEDCL has submitted its projections of
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 138
repayment of borrowings, programmes for fresh borrowings as well as the
chargeable amount of interest to the revenue account after considering the
capitalization of interest.
5.7.2 WBSEDCL has projected in Form C interest on capital borrowings net of
capitalization at Rs. 59500.00 lakh for the year 2017-18. This interest amount,
however, includes the interest of Rs. 10404.00 lakh on pension bond. The
interest on Capital Borrowing thus comes to Rs.49096 Lakh as projected by
WBSEDCL.
5.7.3 It is seen from the details of loans and interest thereon submitted in Form – C to
Annexure – 1 that the projected interest for the year 2017-18 includes interest on
fresh loan to be drawn from Banks / FI during the years 2016 – 2017 and 2017-
18.
It also appears from the Perspective Plan submitted by WBSEDCL that the
Proposed Capitalization is for 2016-17 Rs.2734 Lakh and for 2017-18 Rs. 43504
Lakh. The commission finding no detailed COD for the entire capitalization for
2017-18 used the CAGR of the actual assetization of previous years. The CAGR
of assetization for the period 2012-13 to 2015-16 comes to 13% on the basis of
data submitted by WBSEDCL through Form 1.18(a). On the basis of this CAGR
the Commission recast the projection of assetization for 2017-18 which comes to
Rs. 169111.28 Lakh as against the WBSEDCL projection for 2017-18 Rs. Rs.
274000 Lakh. Accordingly the Commission adjusts the status of projection on
drawal, repayment and interest in the ratio of assetization against the fresh loan
for the Year 2017-18 as depicted in Annex 5E. Against the New Project Loan the
Commission made no adjustments for the year 2016-17 as the estimation of
assetization by WBSEDCL for the base year 2016-17 has not been altered by the
Commission.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 139
The Commission admits the claim of WBSEDCL on interest on capital borrowings
for the year 2017-18 with such modifications w.r.t loan on new projects as stated
above with the condition that WBSEDCL shall furnish the details and purpose of
the new loans with supporting documents along with their APR applications for
2017-18 failing which no interest on such loans will be considered and the
interest admitted will be proportionately adjusted from future tariff.
Rs. in Lakh
Details of Interest on Capital Account
Source of Loan Claimed AdmittedMarket Bond 75 75.00Capital Bond 10095 10095.00PFC 2715 2715.00REC 23763 23763.00New Project Loan 16246 14045.74Total Interest 52894 50693.74Less Capitalized 3798 3640.01Net of Capitalization 49096 47053.73
5.7.4 The allocation of interest between generation and distribution has been done in
the same ratio as proposed by WBSEDCL based on the purpose of the loan and
its utilization (For detailed computation vide Annex 5E).
Rs. in lakh
Sl. No Particular Amount as Admitted2017-18
1 Generation 5089.002 Distribution 41964.733 Total 47053.73
WBSEDCL is directed to submit the scheme wise details of the loan taken during
2017-18 in the APR for 2017-18 as directed in paragraph 5.7.3 of this order. It is
also directed to submit loan wise details of Capital WIP, Assetisation, Interest
paid and interest capitalized for each year since 1.4.2007.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 140
5.8 Other Finance Charges:
The estimation of other finance charges as submitted by WBSEDCL in specified
format 1.17(c) is for a total amount of Rs. 2420 lakh for 2017-18. The actual
expense for 2015-16 was 2192.00 lakh. Considering the same the other finance
charges consisting of guarantee commission and Bank charges are admitted as
proposed by WBSEDCL. It is observed from the past data that there has been a
significant increase of expenses from Rs 712 lakhs in 2012-13 to 2192 lakhs in
2015-16 as per actual for these years under this head. WBSEDCL while
projecting for 2017-18 has considered a figure of 2420 lakh following the same
trend and has not clarified such hike. However, WBSEDCL shall submit details of
such expenditure while submitting APR, based on which the matter will be
reviewed. The admitted amount is considered for Rs 2420 lakh. The cost
allocations for distribution and generation function are done in the same
proportion as projected in the MYT application.
Rupees in LakhYears Generation Distribution Total
2017-18 36 2384 2420
5.9 Bad Debts:
WBSEDCL has projected Bad Debt Rs.2500 Lakh for 2017-18. In Para 6.14 of
the Petition they have stated 2481 Lakh for waiver of dues of Water Resource
Development Department and referred to Annexure 17 of Appendix A. On
examination of the Annexure 17 no specific details for such proposal of waiver
can be seen. The Commission, thus, does not consider any amount under the
head bad debt for ensuing year 2017-18 under the fifth control period . In case
any bad debt is actually written off in any year, WBSEDCL shall claim the same
as per provision of regulation 5.10.1 of the Tariff Regulations in their APR
application for the concerned year.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 141
5.10 Minimum Alternate Tax
WBSEDCL has not made any claim against Minimum Alternate Tax but the
Return on Equity in form1.22 shows consideration of tax element to arrive at the
effective rate of ROE. In Regulation 5.6.1.1 it is clearly stated that the Return on
Equity shall be calculated on pre tax basis and actual income tax liability related
to the core business only will be allowed separately on actual payment basis
subject to final assessment. Subject to compliance with the Regulation during
truing up, the Commission admits the amount of MAT as 21.3416% of ROE to
the tune of Rs.7946.80 Lakh.
5.11 Interest on Consumers’ Security Deposits
WBSEDCL has claimed towards interest on consumers’ security deposit of Rs.
11500 lakh for 2017-18.. The actual amount of interest accrued on consumers’
security deposit during 2015-16 as per audited annual accounts was Rs.
10257.00 lakh. In view of the same, the projected value of interest on consumer
security deposit for 2017-18 is admitted as Rs. 11500.00 lakh. The entire amount
is allocated to distribution function. During truing up the amount on this head will
be allowed on actual basis as per Regulation 5.6.5.3.
5.12 Reserve for Unforeseen Exigencies:
WBSEDCL has not claimed any amount under the head reserve for unforeseen
exigencies for the year 2017-18 and the Commission also does not consider to
allow any amount under this head. WBSEDCL is, however, directed to maintain
the funds lying with them as per provision of the regulation 5.24 of the Tariff
Regulations.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 142
5.13 Interest on Working Capital:
WBSEDCL has stated that in accordance with the direction of the Commission in
paragraph 6.11 of the Tariff Order 2008-09, the security deposit of the permanent
consumers (excluding provision for security deposit) during the year 2017-18 has
been considered for utilization as working capital during the respective year and
no amount has been claimed against the head interest on working capital for the
ensuing years. In the form 1.17(b) with the petition WBSEDCL has projected
Rs.190495 Lakh as Normative requirement of Working Capital and projected
Security Deposit Rs.284513 Lakh. The Commission also does not consider any
amount under the head for any ensuing year. This is because the Commission
worked out working capital requirement at Rs.195986.08 Lakh against projected
Security Deposit Rs.284513 Lakh (For detailed computation vide Annex 5F) .The
Commission maintained the projection for consumer for the year 2017-18 as
made by WBSEDCL in Form 2.2 at 18343320 Nos. which includes consumers in
the segments of L&MV,HV and EHV and as such the Projection of Security
Deposit as made by WBSEDCL has been accepted. The necessity of borrowing
working capital, however, cannot be ruled out. If any such borrowing is done, the
interest on that will be considered for re-imbursement through APR for the
concerned year as per Regulation 5.6.5. However, in pursuance of the directive
given in paragraph 6.11 of the Tariff Order 2008-09, the balance of security
deposit over normative working capital shall be properly invested and the earning
from such investment shall be considered as income from non tariff sources.
WBSEDCL is thus directed with APR Petition to submit utilization of the security
deposit duly certified by the Auditor.
5.14 Return on equity:
WBSEDCL has proposed Return on Equity for Rs. 44700 lakh on the average
equity base of Rs. 213094 lakh for the year 2017-18 in Form 1.22. While
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 143
computing the normative return, WBSEDCL has considered the return @ 20.98%
on pre-tax basis.
WBSEDCL in their computation of equity base in Form 1.20(a) to Annexure – 1
has shown the admissible equity base at the beginning of the year 2017-18 as
213094.00 lakh .On examination, it appears that WBSEDCL has deducted the
closing net negative surplus at the end of 2015-16 12580.00 lakh from the equity
base of Rs.225674 Lakh.
It also appears from the Accounts for the year 2015-16 that a sum of Rs 225674
lakhs was the Equity Base as on 31.3.2016. It further appears from the form 1.20
(a) of the petition submitted by WBSEDCL that no addition to such equity base
has been projected by WBSEDCL during 2016-17 and 2017-18. Accordingly, the
Commission considered the Equity Base as Rs.225674 Lakh as on 1.4.2017
which would remain at the same figure as on 31.3.2018 due to no further addition
as per submission of WBSEDCL. Accordingly the average Equity Base for 2017-
18 will stand at Rs.225674 Lakh.
The Commission accordingly allowed 16.5% return on the same in terms of Tariff
Regulations. The workings are shown in the following table:
Sl. No. Particulars 2017-18
1 Actual equity base considered at the beginning of the year including free reserve 225674.00
2 Admissible equity base at the beginning of the year 225674.003 Addition to Equity base for the year 04 Actual Equity base at the end of the year [(1) + (3)] 225674.005 Net addition to fixed asset during the year 169111.006 Normative addition to Equity base {30% of (5)} 50733.307 Addition to equity base considered for the year lower of (3) and (6) 08 Admissible equity base at the end of the year (2) + (7) 225674.00
9 Average admissible equity base to be considered for return {(2) + (8)}/2 225674.00
10 Rate of return considered 16.5%11 Return on equity (ROE) 37236.21
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 144
5.15 Principal Repayment of Bonds For Creation of Pension Fund:
WBSEDCL in their submission in para 6.6 has stated that, after unbundling of
erstwhile WBSEB, WBSEDCL started functioning from 01.04.20107 on the
strength of notification issued by the Government of West Bengal (GoWB) vide
Notification No.313-PO/O/III/3R-29/2006 dated 19/09/2008. In schedule E of the
notification in was categorically stated that for payment of terminal benefits
(pension & gratuity), Pension Trust Bond on Rs. 1,80,000 lakh is to be issued by
newly formed WBSEDCL (Rs 1,53,000 lakh) and WBSETCL (Rs. 27,000 lakh)
and balance portion of the liability (Rs 3,67,759 lakh less Rs. 1,80,000 lakh) will
be paid by WBSEDCL out of fund inherited from WBSEB and WBSEB ECFP
Trust fund. Accordingly, WBSEDCL issued Pension Trust Bond of Rs. 1,53,000
lakh through private placement which was guaranteed by GoWB towards any
shortfall in payment of annual interest and repayment obligations of the company.
As per terms of the Govt. of West Bengal Notification No.313-PO/O/III/3R-
29/2006 dated 19/09/2008, the Pension Trust Bond is re-payable in 5 equal
annual installments after 10 years of moratorium period and accordingly 1/5th of
Rs.1,53,000 Lakh i.e.Rs.30,600 lakh is due on 1.4.2017 as first installment.
WBSEDCL stated to allow recovery of Rs.30600 lakh through five consecutive
years from the FY 2017-18.
WBSEDCL has not submitted any documents regarding payment of the 1st
installment towards redemption of the bond to this Commission subsequently.
The Commission now allows only 50% of the claim made by WBSEDCL in this
ARR and will consider the balance amount based on the actual documents
regarding payment of the installment at the time of APR based on prudence
check.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 145
5.16 Other Items-WBSEDCL has claimed an amount of Rs.201 Lakh for contingent
expenses like Death/Damage/Injuries and Safety awareness programme. No
amount on this head is being allowed at present by the Commission.
5.17 Income from Non-Tariff Sources
The income from non-tariff sources comprising rental of meters and other
apparatus, delay payment surcharges, interest from investment income etc. has
been projected by WBSEDCL as Rs. 76392 lakh, for 2017-18. The Commission
on examination of details of the elements under this head has reviewed the
projection of WBSEDCL in the case of Meter Rent and Wheeling Charges. In
Meter Rent WBSEDCL claimed an amount of Rs. 51,973.00 lakhs with a
proposal of increasing the meter rent as it was not revised since tariff order 2010-
11. In absence of detail documents, Commission does not allow any increase in
the meter rent and finds it appropriate to continue with the present meter rent.
Hence considering the increase in number of consumers only Commission
admits an amount of Rs 24108 lakh on account of income from meter rent. . For
wheeling charge, the commission admits an amount of Rs. 154.26 Lakh for 13
MU in place of WBSEDCL claim of Rs.174 Lakh (For detailed computation vide
Annex 5G).
Thus the total admitted amount under Income from Non Tariff Sources comes to
Rs.48507.47 Lakh (For detailed computation vide Annex 5H).
5.18 Interest Credit
In terms of regulation 5.5.3 of the Tariff Regulations, WBSEDCL has proposed
Rs. 1389.00 lakh for 2017-18 as interest credit while determining the Net
Aggregate Revenue Requirement for the corresponding year in tariff as the
amount of chargeable depreciation is more than the amount of loan repayable for
that year. As the Loan repayment allowed in this order has been reduced from
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 146
the amount projected by WBSEDCL, the Commission computes the amount
afresh based on the depreciation allowed, the projected schedule of repayment
of loan and weighted average rate of interest of borrowings and admits the same
as shown below
Rs. in Lakh
Sl. No. Particulars 2017-181. Depreciation Allowed 68055.462. Repayment as proposed 23105.893. Excess fund created 44949.564. Weighted average rate of interest of existing loan(2017-18) 10.10 %5. Interest Credit admitted by the Commission 4539.07
In absence of any specific proposal from WBSEDCL and information about
break-up of repayment of the loan specific to generation and distribution, the
Commission decides to allocate the same in the proportion to depreciation
allowed to generation (15%) and distribution (85%) for 2017-18 for both proposed
and admitted amounts as shown in the following table subject to final adjustment
on the basis of actual audited data in the APR for the concerned year.
Sl. No. Particulars 2017-181. Generation 681.322. Distribution System 3857.75
3. Interest Credit admitted by the Commission 4539.07
5.19 Transmission charges payable to WBSETCL
WBSEDCL has asked for a provision for amounts of Rs. Rs. 1,10,606.00 lakh in
2017-18 towards transmission charges payable to the State Transmission Utility,
i.e., West Bengal State Electricity Transmission Company Ltd (WBSETCL) .The
Commission has finalized the amount of the Aggregate Revenue Requirement
(comprising of all its fixed charges) of WBSETCL based on the tariff application
submitted by WBSETCL for the concerned year 2017-18 and the same has come
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 147
to Rs. 1,25,099.42 lakh in 2017-18, which has been shared between WBSEDCL
and CESC as per their long-term contract with WBSETCL. The particulars will be
available in the Commission’s order in Case No: TP-70/16-17 in regard to
WBSETCL for the year 2017-18. The Commission accordingly allows a sum of
Rs. 1,22,130.76 lakh, payable by WBSEDCL to WBSETCL as transmission
charges during 2017-18.
5.20 CTU Charges
The projection of WBSEDCL on CTU charges is Rs. 66447.00 lakh for the year
2017-18 includes the newly introduced Point of Connection (POC) charge
method by CERC since July,2011 and VARH Charge claimed by PGCIL as per
CERC regulation as noted in paragraph 6.19 of the Petition. They have stated to
have made the projection considering existing trend, expanding net work and
purchase of power from outside State during the year 2017- 2018. The
Commission admits Rs. 66,447.00 lakh on account of CTU charges as proposed
by WBSEDCL. However, the actual amount of transmission charge to be paid to
CTU will be adjusted in APR.
5.21 ERPC Charge
WBSEDCL has projected ERPC charge as Rs.385.00 lakh for the year 2017-18.
From the minutes of 35th
5.22 System operation charges payable to POSOCO
ERPC Board meeting dated 25.02.2017, it is observed
that the charge for ERPC establishment fund and ERPC fund is decided as
Rs.15.00 Lakh and Re.1.00 Lakh respectively. Hence, the Commission admits
Rs.16.00 Lakh as ERPC charges.
WBSEDCL has projected system operation charge payable to POSOCO at Rs.
543.00 lakh for the year 2017-18 at 2015-16 level as shown by audited accounts
which is admitted by the Commission.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 148
5.23 SLDC Charges
WBSEDCL has projected SLDC charges as Rs. 2034.00 lakh for the year 2017-
18..As per Regulation 3(c ) of the West Bengal Regulatory Commission
(Miscellaneous Provisions) Regulation,2017 fees payable by the licensee is
based on estimated electricity to be transmitted by them through intra-state grid
under long term access and medium term open access mode of transmission.
Accordingly, considering the tariff order of WBSETCL for the year 2017-2018 the
payable SLDC charges come to Rs.1862.30 Lakh. The detailed computation is
given below:
Sl. No. Description Unit 1. Energy proposed to be purchased from
outside the StateMU 13841.00
Less CTU loss MU 325.08Sub Total ( A) MU 13515.92
2. Energy to be purchased from within the State, to be injected in STU (B)
MU 23730.00
Total ( A + B) MU 37245.98SLDC Charges @ o.5 paise /kwh Lakh 1862.30
5.24 Adjustment of Amounts received towards Deviation Settlement Mechanism (DSM)
No amount on benefit from DSM is considered as no energy on DSM drawal is
projected by WBSEDCL for the ensuing year under the fifth control period 2017-
18. However, any income from DSM will be viewed on actual basis in the APR for
the respective year as per provisions of the Tariff Regulations.
5.25 Expenses attributable to Sale of energy to persons other than consumers and licensees of the Commission.
The expenses on this head as proposed by WBSEDCL has not been considered
as there is change in power purchase cost than that has been proposed by
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 149
WBSEDCL due to number of reasons as explained in this order. As per
paragraph 4.14 of this order, the quantum of sale to persons other than
consumer and licensees is 7165.89 MU, which will remain in the credit of
WBSEDCL for sale to persons other than own consumers and licensees of the
Commission. WBSEDCL shall either sell such power to others or back down
some of the generation. Accordingly the Commission finds it suitable to adjust the
cost of 7165.89 MU power at average power purchase rate of 339.53 paisa/unit.
Thus the revenue to be earned by WBSEDCL out of sale of energy to persons
other than own consumers and licensees comes to Rs. 2,43,303.46 lakh which is
to be deducted from the total amount recoverable by WBSEDCL for the year
2017 - 2018. WBSEDCL is directed to submit the actual sell details during
FPPCA for the purpose of truing up.
5.26 Sharing of benefits from sale of power to persons other than the consumers and licensees of the Commission:
Commission observes that due to volatile market the projections on such sale
have no compatibility at all with the actual of the year. Due to the above reason
the projected tariff will be distorted if any gain sharing is considered on the basis
of such projected sale which ultimately provided an untrue perception in the level
of retail tariff that greatly affects the consumers, the licensees and power sector
as a whole. In order to remove such distortion in the tariff the Commission
decides that in general the benefits from sale of power to person other than the
consumers and licensee of the Commission will be passed on to the consumers /
licensees on actual basis through APR of the concerned year only instead of tariff
order on projection basis.
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5A
West Bengal Electricity Regulatory Commission 150
Monthly Rate of Inflation in CPI number for Industrial Worker (%)Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb March Average
2011-12 9.41 8.72 8.62 8.43 8.99 10.06 9.39 9.34 6.49 5.32 7.57 8.65 8.422012-13 10.22 10.16 10.05 9.84 10.31 9.14 9.60 9.55 11.17 11.62 12.06 11.44 10.432013-14 10.24 10.68 11.06 10.85 10.75 10.70 11.06 11.47 9.13 7.24 6.73 6.70 9.722014-15 7.08 7.02 6.49 7.23 6.75 6.30 4.98 4.12 5.86 7.17 6.30 6.28 6.302015-16 5.79 5.74 6.10 4.37 4.35 5.14 6.32 6.72 6.32 5.91 5.53 5.51 5.652016-17 5.85 6.59 6.13 6.46 5.30 4.14 3.35 2.59 2.23 1.86 4.45Source : Website of Labour Bureau, GOI : Average Value is being Computed
WPI FROM OFFICE OF ECONOMIC ADVISOR , GOIYear Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2011-12 152.10 152.40 153.10 154.20 154.90 156.20 157.00 157.40 157.30 158.70 159.30 161.002012-13 163.50 163.90 164.70 165.80 167.30 168.80 168.50 168.80 168.80 170.30 170.90 170.102013-14 171.30 171.40 173.20 175.50 179.00 180.70 180.70 181.50 179.60 179.00 179.50 180.302014-15 180.80 182.00 183.00 184.60 185.70 185.00 183.70 181.20 178.70 177.30 175.60 176.102015-16 176.40 178.00 179.10 177.60 176.50 176.50 176.90 177.50 176.80 175.40 174.10 175.302016-17 177.80 180.20 182.90 184.20 183.30 183.20 182.90 183.10 183.20 184.60 185.50
Source : Website of Office of the Economic Advisor, GOI :
MONTHLY INFLATION RATE COMPUTED BASED ON WPI FROM OFFICE OF ECONOMIC ADVISOR, GOI (%)Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average
2011-12 9.74 9.56 9.51 9.36 9.78 10.00 9.87 9.46 7.74 7.23 7.56 7.69 8.962012-13 7.50 7.55 7.58 7.52 8.01 8.07 7.32 7.24 7.31 7.31 7.28 5.65 7.362013-14 4.77 4.58 5.16 5.85 6.99 7.05 7.24 7.52 6.40 5.11 5.03 6.00 5.982014-15 5.55 6.18 5.66 5.19 3.74 2.38 1.77 0.00 0.11 -0.39 -2.06 -2.33 2.152015-16 -2.65 -2.36 -2.40 -4.05 -4.95 -4.54 -3.81 -1.99 -0.73 -0.90 -0.91 -0.85 -2.512016-17 0.34 0.79 1.62 3.55 3.74 3.57 3.39 3.15 3.39 5.25 2.88
Source : Website of Office of the Economic Advisor, GOI :
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
–20
18
AN
NEX
UR
E –
5BO
&M
FO
R D
ISTR
IBU
TIO
N
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
151
TABL
E –
I
Sl
NoPa
rticula
rsUn
its
Inflationary Basis
Sensitivity Parameter
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
(Esti
mated
by
W
BSED
CL)
2016
-17
(Esti
mated
by
WBE
RC)
Proje
cted
for 17
-18
by E
RC as
pe
r for
mula
Proje
cted
by
DCL f
or 20
17-
181
Total
line-
length
on 31
st Ma
rch
CKM
4084
1749
2046
5228
5454
7653
Not P
rojec
ted57
5035
.6560
3787
.43No
t Pro
jected
2To
tal co
nsum
ers o
n 31s
t Mar
ch
numb
er12
0962
0213
6867
6715
1034
5916
3641
2917
4088
2617
4088
2618
3433
2018
3433
20Inc
reas
e in l
ine le
ngth
(in re
lation
to la
st ye
ar)
%20
.486.2
64.7
45.0
0Inc
reas
e in
cons
umer
(in re
lation
to la
st ye
ar)
%13
.1510
.358.3
50.0
65.3
7DL
L-CA
GR of
capa
city g
rowt
h 13-
14 to
15-1
60.0
550
CS-C
AGR
of ca
pacit
y gro
wth 1
3-14
to15
-16
0.093
43
Repa
ir &
Maint
enan
ce E
xpen
ditur
eRs
Lakh
WPI
+CPI
DLL H
2150
224
639
2582
229
340
3087
230
872
3242
3.72
3283
14
Rent
Rs La
khW
PI+C
PIDL
LE84
595
110
0811
3513
6211
9112
50.00
1604
5Au
ditor
s Fee
sRs
Lakh
WPI
+CPI
DLLE
165
162
143
196
235
206
215.8
627
76
Lega
l Cha
rges
Rs La
khW
PI+C
PICS
300
375
304
519
623
587.4
061
9.09
733
7Ot
hers
Admi
nistra
tive a
nd G
ener
al Ex
pens
esRs
Lakh
WPI
+CPI
CS94
3414
665
1160
611
130
1335
912
596.9
212
985.0
615
733
8To
tal A
dmini
strati
ve &
Gen
eral
Expe
nses
(4+5
+6+7
)Rs
Lakh
1074
416
153
1306
112
980
1557
914
580.9
515
070.0
118
347
9To
tal O
&M F
uncti
on E
xpen
ses (
3+8)
Rs La
kh32
246
4079
238
883
4232
046
451
4545
2.95
4749
3.74
5117
810
Leas
e Ren
tal Li
neRs
Lakh
WPI
DLLE
1666
1819
1767
2046
5901
2134
2225
.6061
23
11Co
mplai
nt Ma
nage
ment
Mech
anism
Rs La
khCA
GR of
2012
-13
to 20
15-1
638
036
634
131
535
129
629
7.98
351
12Ra
tes &
Tax
esRs
Lakh
At 20
15-1
6 Lev
el24
8840
9256
2176
7810
517
7678
.0080
64.35
1440
7
13Ins
uran
ceRs
Lakh
CAGR
of 20
12-1
3to
2015
-16
370
711
555
808
955
955.0
010
03.17
1128
14HT
Line
& su
bstat
ion M
ainten
ance
(othe
r tha
n Ma
n Pow
er &
vehic
le)Rs
Lakh
WPI
+CPI
DLL H
3674
3105
3828
4073
4526
4448
4671
.7249
5215
LT M
obile
Main
tenan
ce -M
CSU
(othe
r tha
n Ma
n Pow
er &
vehic
le)Rs
Lakh
WPI
+CPI
CS69
923
6432
5041
4648
3746
91.96
4945
.0552
6516
Data
War
e-ho
using
Rs La
khAS
PRO
JECT
ED80
13
0.40.4
0.40
0.40
0.517
Back
offic
e Job
Rs La
khAC
TUAL
2015
-16
289
210
117
176
201
176
176.0
022
318
Fran
chise
e Cos
tRs
Lakh
CPI
CS45
787
146
758
164
064
067
4.71
703
19Me
ter R
eadin
g & B
ill Di
stribu
tion
Rs La
khCP
ICS
4735
4705
7059
1009
111
657
9517
.7710
034.3
512
942
20Co
llecti
on F
ranc
hisee
Rs La
khW
PI+C
PICS
1086
522
1313
1492
2250
1688
.6417
79.73
2475
21(H
T Lin
e &
subs
tation
Main
tenan
ce (M
anpo
wer a
nd ve
hicle)
Rs La
khCP
IDL
L H67
7786
9710
508
1130
012
535
1245
213
081.8
913
698
22Se
curity
Exp
ense
s( Ot
her t
han M
anpo
wer)
Rs La
khW
PI+C
PIDL
LE55
629
627
935
840
237
539
3.80
460
23Se
curity
expe
nses
(Man
powe
r)Rs
Lakh
CPI
DLLE
3241
2285
2599
2637
2964
2793
2905
.4033
9224
Call C
enter
(Othe
r tha
n Man
powe
r0W
PI+C
PICS
185
247
294
298
313
313
319.9
632
825
Call C
enter
(Man
powe
r)Rs
Lakh
CPI
CS13
6718
2321
7121
9623
0723
0723
85.78
2422
26LT
Mob
ile M
ainten
ance
-MCS
U ( M
an P
ower
& ve
hicle)
Rs La
khCP
ICS
1319
4459
6130
7819
9125
8930
.6694
15.01
9930
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
–20
18
152
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
TABL
E –
IIPR
OJEC
TED
ANNU
AL E
SCAL
ATIO
N R
ATE
COMP
UTAT
ION
OF D
IFFE
RENT
PAR
AMET
ERS
DURI
NG F
IFTH
CON
TIFR
OL P
ERIO
D (2
017-
18)
Sl
NoPa
rticula
rsUn
itsInf
lation
ary
Basis
Sens
itivity
Pa
rame
ter
CAGR
betw
een
Aver
age
Inflat
ion R
ate
durin
g the
Co
ncer
ned
perio
d
Whe
ther
Inflat
ion
rate
is ap
plica
ble
Addit
ional
Gr
owth
Rate
of ex
p abo
ve
inflat
ion ra
te
Ratio
of E
xp
incre
ase
to se
nsivi
ty pa
rame
ter
{Lim
ited t
o 1}
Esca
lation
ra
te for
20
17-1
8
2015
-16
to 20
14-1
5to
2013
-14
to 20
16-1
720
16-1
720
16-1
71
Total
line-
length
incre
ase
%DL
L0.0
50.0
490.0
532
Total
cons
umer
s inc
reas
e%
CSM
0.06
0.07
0.08
3Re
pair
& Ma
inten
ance
Exp
endit
ure
Rs La
khW
PI+C
PIDL
L H0.0
522
0.093
40.0
781
0.02
Yes
0.03
1.00
5.03
4-
Rent
Rs La
khW
PI+C
PIDL
L0.0
493
0.087
00.0
779
0.02
Yes
0.03
0.99
4.96
5-
Audit
ors F
ees
Rs La
khW
PI+C
PIDL
L0.0
493
0.199
30.0
828
0.02
Yes
0.03
0.99
4.96
6-
Lega
l Cha
rges
Rs La
khW
PI+C
PICS
M0.1
318
0.390
10.1
614
0.02
Yes
0.11
1.00
5.39
7-
Othe
rs Ad
minis
trativ
e and
Gen
eral
Expe
nses
Rs La
khW
PI+C
PICS
M0.1
318
0.041
8-0
.0494
0.03
Yes
0.01
0.57
3.08
8Le
ase R
ental
Line
Rs La
khW
PIDL
LE0.0
429
0.098
90.0
547
0.00
Yes
0.04
0.86
4.30
9Co
mplai
nt Ma
nage
ment
Mech
anism
Rs La
khW
PI+C
PICS
M-0
.0606
-0.06
85-0
.0684
0.70
10Ra
tes &
Tax
esRs
Lakh
WPI
+CPI
DLLE
0.000
00.1
687
0.233
40.0
3Ye
s0.1
41.0
05.0
311
Insur
ance
Rs La
khW
PI+C
PIDL
LE0.1
819
0.311
80.1
033
0.04
Yes
0.27
1.00
5.04
12HT
Line
& su
bstat
ion M
ainten
ance
(othe
r tha
n Ma
n Pow
er
& ve
hicle)
Rs La
khW
PI+C
PIDL
L H0.0
920
0.077
90.1
273
0.03
Yes
0.05
1.00
5.03
13LT
Mob
ile M
ainten
ance
-MCS
U (o
ther t
han
Man P
ower
&
vehic
le)Rs
Lakh
WPI
+CPI
CS0.1
318
0.201
50.2
567
0.02
Yes
0.11
1.00
5.39
14Da
ta W
are-
hous
ingRs
Lakh
WPI
+CPI
CS0.0
000
-0.63
49-0
.2632
0.02
No-0
.020.0
015
Back
offic
e Job
Rs La
khW
PI+C
PIDL
LE0.0
000
0.226
5-0
.0572
0.02
No-0
.020.0
016
Fran
chise
e Cos
tRs
Lakh
CPI
CS0.1
015
0.170
7-0
.0976
0.05
Yes
0.05
1.00
5.42
17Me
ter R
eadin
g & B
ill Di
stribu
tion
Rs La
khCP
ICS
-0.05
680.1
612
0.264
70.0
5Ye
s0.1
11.0
05.4
318
Colle
ction
Fra
nchis
eeRs
Lakh
WPI
+CPI
CS0.1
318
0.134
10.4
790
0.02
Yes
0.11
1.00
5.39
19(H
T Lin
e &
subs
tation
Main
tenan
ce (M
anpo
wer a
nd
vehic
le)Rs
Lakh
CPI
DLL H
0.102
00.0
886
0.127
10.0
5Ye
s0.0
31.0
05.0
620
Secu
rity E
xpen
ses(
Othe
r tha
n Man
powe
r)Rs
Lakh
WPI
+CPI
DLLE
0.049
30.1
587
0.082
20.0
2Ye
s0.0
30.9
94.9
621
Secu
rity ex
pens
es(M
anpo
wer)
Rs La
khCP
IDL
LE0.0
589
0.036
70.0
692
0.05
No-0
.024.0
422
Call C
enter
(Othe
r tha
n Man
powe
r0Rs
Lakh
WPI
+CPI
CS0.0
505
0.031
00.0
817
0.03
Yes
0.00
0.42
2.29
23Ca
ll Cen
ter (M
anpo
wer)
Rs La
khCP
ICS
0.050
50.0
310
0.081
70.0
5N0
-0.02
0.42
3.41
24LT
Mob
ile M
ainten
ance
-MCS
U ( M
an P
ower
& ve
hicle)
Rs La
khCP
ICS
0.142
10.2
070
0.260
50.0
5Ye
s0.0
91.0
05.4
2
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5B APPORTIONMENT OF COST OF OUTSOURCING
West Bengal Electricity Regulatory Commission 153
TABLE – III
Particulars Excluding Manpower
Manpower related Total 13-14 ratio of Excluding
Manpower13-14 ratio of
Manpower relatedHT Line2012-13 2665 5009 7674 0.3 0.72013-14 2347 6273 8620 0.3 0.72014-15 3024 7842 10866 0.3 0.72015-16 3286.34 8783.66 12070 0.3 0.72016-17 3692.30 9868.70 13561 0.3 0.72017-18 4070.49 10879.51 14950 0.3 0.7Sub Station2012-13 1009 1768 2777 0.4 0.62013-14 758 2424 3182 0.2 0.82014-15 804 2666 3470 0.2 0.82015-16 786.82 2516.18 3303 0.2 0.82016-17 833.75 2666.25 3500 0.2 0.82017-18 881.40 2818.60 3700 0.2 0.8LT Mobile 02012-13 699.19 1318.81 20182013-14 2364 4459 6823 0.3 0.72014-15 3249.94 6130.06 9380 0.3 0.72015-16 4145.58 7819.42 11965 0.3 0.72016-17 4837.49 9124.51 13962 0.3 0.72017-18 5264.69 9930.31 15195 0.3 0.7Line and Substation2015-16 4073.17 11299.83 15373.00 0.3 0.72016-17 4526.06 12534.94 17061.00 0.3 0.72017-18 4951.89 13698.11 18650.00 0.3 0.7Call Center2012-13 185.29 1366.71 1552.002013-14 247.14 1822.86 2070.002014-15 294.30 2170.70 2465.002015-16 297.76 2196.24 2494.002016-17 312.80 2307.20 2620.002017-18 328.32 2421.68 2750.00Security Expenses2012-13 555.75 3241.25 3797.002013-14 296.04 2284.96 2581.002014-15 279.47 2598.53 2878.002015-16 357.57 2637.43 2995.00 0.12 0.882016-17 401.87 2964.13 3366.002017-18 459.89 3392.11 3852.00
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5C COMPUTATION OF EMPLOYEE COST
West Bengal Electricity Regulatory Commission 154
Sl No
Year 2015-16 2016-17 2016-17 2017-18 2017-18
Particulars Cost Actual DCL Cost estimated- DCL Cost Revised -WBERC
Cost Projection
DCL
Cost Admitted WBERC
1 Basic 29,325.00
29,489.00 29,834.81 77,782.00 32,116.56
2 DA32,590.00
35,119.00 35,503.42 3,052.00 44,642.01
3 Other Allowances8,298.00
8,470.00 8,442.26 18,292.00 9,087.92
4 Retirement Benefit57,559.00
66,193.00 59,418.16 68,331.00 61,337.36
5 Bonus Ex-gratia1,516.00
1,419.00 1,497.43 1,477.00 1,565.00
6 LTC918.00
859.00 906.76 894.00 947.67
7 Leave Encashment5,113.00
5,880.00 5,050.38 6,069.00 5,278.28
8 Welfare Exp263.00
246.00 259.78 256.00 271.50
9 Others8.00
7.00 7.90 8.00 8.26
10 Medical2,247.00
2,103.00 2,219.48 2,189.00 2,319.63
11 Leave Encashment-15days 1,643.00
1,538.001,622.88 1,600.00 1,600.00
12 Compensation 47.00
44.00 46.42 45.00 48.52
13 Liveries5.00
5.00 4.94 5.00 5.00
14 GRP Scheme185.00
174.00 182.73 181.00 190.98
15 Gross Total Employee Cost 139,717.00
151,546.00 144,997.34 180,181.00 159,418.70
16 Less Capitalized22,517.00
26,348.00 25,209.44 28,435.00 25,158.43
17 Total Employee Cost117,200.00
125,198.00 119,787.90 151,746.00 134,260.27
Tari
ff O
rder
of W
BSED
CL fo
r th
e ye
ar 2
017
– 20
18
AN
NEX
UR
E –
5D
CO
MPU
TATI
ON
OF
DEP
REC
IATI
ON
Wes
t Ben
gal E
lect
rici
ty R
egul
ator
y Co
mm
issi
on
155
Rs.L
akh
Deta
il of A
sset
izatio
n20
12-1
320
13-1
420
14-1
520
15-1
620
16-1
720
17-1
8-20
17-1
8-As
pro
jecte
d by
WBS
EDCL
As A
dmitt
edO/
b Wor
k –in
-Pro
gres
s19
2172
2186
7017
9257
1385
2014
1326
2309
32ad
dition
1454
9219
7516
2021
0417
3184
2392
6239
5710
Tran
sfer
red
to F
ixed
Asse
t11
8994
2369
2924
2841
1703
7814
9656
2740
0016
9111
.3Ba
lance
2186
7017
9257
1385
2014
1326
2309
3235
2642
CAGR
of C
apita
lizat
ion
12-1
3 to
15-1
613
% AS
SET
CLAS
S
Open
ing
Balan
ce
of d
epre
ciabl
eas
set
2016
-17
Addi
tion
durin
g th
e Ye
ar 20
16-1
7
Addi
tion
durin
g th
e Ye
ar 20
17-1
8
Asse
t to
be
depr
eciat
ed
durin
g th
e Yea
r 20
17-1
81.8
0%2.5
7%3.6
0%6%
18%
11.51
%To
tal
Gene
ratin
g As
set-C
alcul
ated
3183
8715
922
2377
935
8088
3587
725
989
2504
9715
446
158
3012
135
8088
Depr
eciat
ion-A
vg C
alcula
ted61
563
685
8588
227
3197
1394
2Di
strib
utio
n As
set-C
alcul
ated
1593
065
1337
3314
5332
1872
130
1875
7013
5875
1309
628
8075
782
515
7475
1872
130
Depr
eciat
ion-A
vg C
alcula
ted31
8132
8944
411
4565
140
1653
872
124
Mete
ring
Asse
t-Calc
ulat
ed15
3285
00
1532
8515
358
1112
510
7229
6612
6712
893
1532
85De
prec
iation
-Avg
Calc
ulated
277
286
3860
396
1214
3762
69Ot
her A
sset
Calc
ulat
ed36
431
00
3643
136
5026
4425
485
1571
1630
6436
431
Depr
eciat
ion-A
vg C
alcula
ted66
6891
794
334
214
90In
tang
ible
Asse
t Calc
ulat
ed48
980
048
9849
135
534
2621
13
412
4898
Depr
eciat
ion-A
vg C
alcula
ted9
912
313
046
200
Total
2106
066
1496
5516
9111
2424
832
Tota
l Dep
recia
tion-
Avg
Calcu
lated
4146
4288
5789
759
5118
221
561
9402
5To
tal D
epre
ciatio
n-Fo
rm B
1496
5524
2483
245
9247
4964
115
6590
201
2387
610
4123
Gran
t Fun
ded
Asse
ts25
970
Depr
eciat
ion-
2017
-18
6805
5
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5E REVISED STATEMENT OF LOAN
AND COMPUTATION OF INTEREST ON LOAN FOR 2017 – 2018
West Bengal Electricity Regulatory Commission 156
Interest on New Loan-Computation Rs. Crore
Particulars WBSEDCL CLAIM -2017-18 Admitted 2017-18 Fixed Asset 2740.00 1691.11 Loan Opening Balance 1155.63 1155.63 Drawal 1208.68 745.99 Repayment 89.48 71.97 Closing Balance 2274.83 1829.65Average of Opening Balance and Closing Balance 1715.23 1492.64 Rate of Interest 9.41% Interest 162.46 140.4574
Rs. in Crore
Source Opening Balance Drawal Repayment Interest Closing Balance
Market Bond LICI 17.58 0 17.58 0.75 0Capital Bond 1000 0 0 100.95 1000PFC 247.21 0 4.73 27.15 242.48REC 1990.8 0 136.78 237.63 1854.02New Project Loan 1155.63 745.99 71.97 140.4574 1829.65State Govt. 0 0Total Loan for Projects 4411.22 745.99 231.06 506.9374 4926.15Pension Bond 1530 0 306.00 104.04 1224Total DCL 5941.22 745.99 537.06 610.98 6150.15Capitalized at the rate as projected by WBSEDCL for 2017-18
36.4001
Charge to Rev 4668.685 574.58Less pension Bond 104.04Interest on capital loan 470.5373
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5F COMPUTATION OF INTEREST
ON WORKING CAPITAL FOR 2017 – 2018
West Bengal Electricity Regulatory Commission 157
Rs. in lakh Particulars Admitted
A. Gross Revenue Requirement (less interest on working capital)
2065152.51
B1. Less: Depreciation 68055.46
B2. Less: Deferred Revenue Expenditure
B3. Less: Return on Equity 37236.21
B4. Less: Reserve for Unforeseen Exigencies
B. Total deductions: (sum B1:B4) 105291.67
C. Allowable Gross Sales for Working Capital (A-B) 1959860.84
D. Allowable Working Capital @10% on C 195986.08
E. Security Deposit as projected for 2017-18 284513.00 F. Excess of Allowable Working Capital over Security Deposit
Nil
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5G
COMPUTATION OF WHEELING CHARGES FOR 2017 – 2018
West Bengal Electricity Regulatory Commission 158
Sl. No. Particulars Units 2017 - 20181 Employe cost for Distribution Function Rs. in lakh 128967.152 Outsourcing expenses for Distribution function Rs. in lakh 50783.803 Operation and Maintenance Expenses for Distribution function Rs. in lakh 50017.314 Rates and taxes Rs. in lakh 8064.355 Insurance Rs. in lakh 1003.176 Interest on loan Rs. in lakh 41964.737 Interest on Bonds for pension fund Rs. in lakh 9963.008 Other finance charges Rs. in lakh 2384.009 Depreciation (net of depreciation on metering and other asset) Rs. in lakh 47798.17
10 Taxes under Income Tax Act Rs. in lakh 7946.8011 Return on Equity Rs. in lakh 37236.2112 Gross Fixed Charges Rs. in lakh 386128.6913 Less: Non Tariff income related to distribution function Rs. in lakh 48507.47
14Less Expenses incidental to selling and distribution of energy viz., meter reading & billing, collection franchisee cost, franchisee cost, complaint management mechanism for consumer, lease rental charges, data warehousing, back office job, call centre cost, MCSU service, etc.
Rs. in lakh 32254.57
15 Interest credit Rs. in lakh 3857.75
16 Net admissible Fixed Charge related to distribution for power transmission only (12-13-14-15)
Rs. in lakh 301508.90
A Sale to own consumers MU 25324.00B Sale to other licensees at EHV MU 72.00C Sale to other licensees below EHV MU 1.00D Energy wheeled MU 13.00E Total of energy (A+B+C+D) MU 25410.00D Wheeling charge (18/C) paise / unit 118.66
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE – 5H INCOME FROM NON-TARIFF SOURCES FOR 2017 – 2018
West Bengal Electricity Regulatory Commission 159
Rs. Lakh
Particulars 2012-13 13-14 14-15 15-16 Basis for
computations 17-18 17-18
Claimed AdmittedNo. of consumers 12096202 13686767 15103459 16364129 18343320 18343320
Meter Rental 17378 19117 20352 21507 Prorated to consumer numbers
51973 24108.21
Disconnection / Reconnection Charges
2052 3426 3277 3730 As proposed
4061 4061.00
Income from Investment and Bank Balance
1537 3316 2856 2435 As proposed
94 94.00
Surcharge for late payment
7528 13350 22880 14526 As proposed
16000 16000.00
Income from jobs at consumer premises
44 96 40 90 As proposed
90 90.00
Wheeling Charge 0 103 59 142 Working 174 154.26 Others 3936 4364 7196 3915 As proposed 4000 4000.00
Total of Other Income 76392 48507.47
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 6
SUMMARISED STATEMENT OF AGGREGATE REVENUE REQUIREMENT& REVENUE RECOVERABLE THROUGH
TARIFF FOR THE YEAR 2017 – 2018
West Bengal Electricity Regulatory Commission 160
6.1 Based on the analyses and findings recorded in the foregoing chapters the
Commission now draws the statements of Aggregate Revenue Requirement
(ARR) separately for the fifth control period covering the year 2017 – 2018.
Such statements are given in Annexure 6A.
6.2 In terms of the Tariff Regulations, the Commission is required also to
ascertain the amount of revenue recoverable through tariff for the years 2017
– 2018 after carrying out adjustments as follows:
6.2.1 WBSEDCL has asked for adjustments of other amounts of Rs. 52231.26 lakh
on the following accounts:
a) Amount of Rs. 22140.00 lakh payable by WBSEDCL to WBPDCL during
2017- 2018 on account of balance amount of arrear against tariff order
dated 30.12.2011 in respect of new units of WBPDCL.
b) Amount of Rs. 30091.26 lakh to be adjusted in 2017 – 2018 against the
balance arrear amount of Rs. 50152.10 lakh payable by WBSEDCL to
WBPDCL during 2017- 2018 on account of FCA for WBPDCL for 2012 –
2013 which the Commission admitted vide orders dated 06.06.2014 and
11.12.2014.
The Commission decides to allow the positive adjustment of Rs. 52231.26
lakh (Rs. 22140.00 lakh + Rs. 30091.26 lakh) as proposed by WBSEDCL for
payment to WBPDCL during 2017 - 2018.
6.2.2 WBSEDCL has submitted their plan for releasing regulatory assets in their
tariff application claiming Rs. 20202.00 lakh as part release of Rs. 554467.00
lakh recoverable on account of APR & FPPCA for the years 2013 – 2014 and
2014 – 2015 after considering adjustment of Rs. 99221.00 lakh of balance
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 161
Government grant. WBSEDCL also claimed a carrying cost of Rs. 76483.00
lakh on the submitted claim of APR & FPPCA for the years 2013 – 2014 and
2014 – 2015 considering SBI PLR of 14.05% as on 1st
As the APR and FPPCA for the years 2013-14 and 2014-15 has not yet been
determined by the Commission no amount on this account has been adjusted
with the ARR of 2017-18.
April, 2016.
6.3 Based on the above, the amount of revenue to be recovered through tariff,
for the year 2017 – 2018, is worked out in the table below.
REVENUE RECOVERABLE BY WBSEDCL THROUGH TARIFF IN 2014 – 2015 (Rs. in lakh)Sl. No. Particulars Generation Distribution Total
1 Net Aggregate Revenue Requirement for 2017-18 as per Annexure – 6A 29062.39 1665852.30 1694914.69
2 Payable arrear against tariff order dated 30.12.2011 of new units of WBPDCL 0.00 22140.00 22140.00
3Payable FCA of WBPDCL for the year 2012-13 vide order dated 06.06.2014 and 11.12.2014.
0.00 30091.26 30091.26
4 Revenue Recoverable [(4 = sum(1:3)] 29062.39 1718083.56 1747145.95
6.4 To find out the revenue to be recovered from the consumers of WBSEDCL
the income of WBSEDCL from sale of power to CESC Limited, DPSCL, DPL
and Sikkim is to be done first and for that purpose the selling price of power
by WBSEDCL to above licensees are determined first as given below:
6.5.1 Commission has already admitted the sale amount of WBSEDCL to CESC
Limited to the tune of 1 MU at paragraph 4.7.3 of this order. The Commission
in its Order dated 04.03.2015 in Case No. TP-61/13 - 14 has allowed a single
part tariff of 757.30 paisa / kWh for sale of power to CESC during the year
2016-17. Commission finds it suitable to allow the same single part tariff of
757.30 paisa/kWh for sale of power to CESC during the year 2017 – 2018 as
well. Accordingly the Commission admits sale of 1.00 MU of power to CESC
Limited by WBSEDCL at a total cost of Rs. 75.73 lakh.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 162
6.5.2 Commission has already admitted the sale amount of WBSEDCL to DVC to
the tune of 1 MU at paragraph 4.7.3 of this order. WBSEDCL has proposed
the tariff for DVC to be similar to CESC Ltd. Thus Commission admits the
single part tariff of 757.30 paisa/kWh for sale of power to DVC during the year
2017 – 2018. Accordingly, the Commission admits sale of 1.00 MU of power
to DVC by WBSEDCL at a total cost of Rs. 75.73 lakh.
6.5.3 Commission has already admitted the sale amount of WBSEDCL to IPCL to
the tune of 1 MU in paragraph 4.7.3 of this order. The Commission in its
Order dated 04.03.2015 in Case No. TP-61/13 - 14 has allowed a single part
tariff of 554.02 paisa / kWh for sale of power to IPCL (formerly known as
DPSCL) during the year 2016-17. Commission finds it suitable to allow the
same single part tariff of 554.02 paisa/kWh for sale of power to IPCL during
the year 2017 – 2018. Accordingly, the Commission admits sale of 1.00 MU
of power to IPCL by WBSEDCL at a total cost of Rs. 55.40 lakh.
6.5.4 Commission has already admitted the sale amount of WBSEDCL to DPL to
the tune of 20 MU at paragraph 4.7.3 of this order. The Commission in its
Order dated 04.03.2015 in Case No. TP-61/13 – 14 has allowed a single part
tariff of 681.00 paisa / kWh for sale of power to DPL during the year 2016-17.
Commission finds it suitable to allow the single part tariff of 681.00 paisa/kWh
for sale of power to DPL during the year 2017 – 2018. Accordingly, the
Commission admits sale of 20.00 MU of power to DPL by WBSEDCL at a
total cost of Rs. 1362.00 lakh.
6.5.5 Commission has already admitted the sale amount of WBSEDCL to
Government of Sikkim to the tune of 50 MU in paragraph 4.7.3 of this order
The price for sale of electricity to Sikkim by WBSEDCL has been admitted as
proposed by WBSEDCL and is 100 paise / kWh for 2017 – 2018 for supply of
50.00 MU at a total cost of Rs. 500.00 lakh.
6.5.6 Using the above determined sets of price for selling of electricity through bulk
supply by WBSEDCL to different licensees of the State and to Sikkim the
projected revenue income is determined as given below:
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 163
Sl. No. Name of Licensee Amount(Rs. in lakh)
1 CESC Limited 75.732 DVC 75.733 DPSCL 55.404 DPL 1362.005 SIKKIM 500.00
Total 2068.86
6.5.7 WBSEDCL shall consider the applicable MVCA, if any, in addition to the tariff
specified in paragraphs 6.5.1 to 6.5.4 above while selling electricity through
bulk supply to different licensees of the State.
6.6 The Commission accordingly worked out the average tariff for the consumers
of WBSEDCL for 2017 – 2018 and the same is shown in the table below:
AVERAGE TARIFF FOR THE CONSUMERS OF WBSEDCL IN 2017 – 2018Sl. No. Particulars Unit Total1 Total Revenue to be recovered through tariff Rs. in Lakh 1747145.95
2 Less: Revenue from sale of power to Licensees and Sikkim Rs. in Lakh 2068.86
3 Revenue recoverable from sale of power to the consumers [(3 )= (1)-(2)] Rs. in Lakh 1745077.09
4 Projected quanta of energy for sale to consumers MU 25324
5 Average tariff for the consumers for the year 2017 – 2018 [(5)=(Sl.3)x10/(Sl.4)]
Paise / kWh 689.10
6.7 On the basis of calculated revenue recoverable for supply of power to the
consumers and average tariff for the consumers for the year 2017 - 2018 as
mentioned in serial number 3 and 5 of above table in paragraph 6.6
respectively, the detailed tariff structure for different classes of consumers
and the other terms and conditions related to tariff for the year 2017 - 2018
are provided in chapter -7 of this order.
Tariff Order of WBSEDCL for the year 2017 – 2018
ANNEXURE- 6A
West Bengal Electricity Regulatory Commission 164
Generation Distribution Total Generation Distribution Total1 Generation charge(fuel) 0.00 0.00 0.00 0.00 0.00 0.002 Power Purchase Cost 0.00 1408931.00 1408931.00 0.00 1351278.40 1351278.403 Transmission charges payable to WBSETCL 0.00 110606.00 110606.00 0.00 122130.76 122130.764 CTU Charges 0.00 66447.00 66447.00 0.00 66447.00 66447.005 ERPC Charges 0.00 385.00 385.00 0.00 16.00 16.006 System operation charges payable to POSOCO 0.00 543.00 543.00 0.00 543.00 543.007 SLDC charges 0.00 2034.00 2034.00 0.00 1862.30 1862.308 Salary & wages including other staff welfare benifits 6587.44 143432.56 150020.00 3202.07 69720.84 72922.91
Terminal benefits 58.88 1668.12 1727.00 2091.05 59246.31 61337.369 O&M Expenses
(i) Operation and Maintenance for Generation 5340.00 0.00 5340.00 4942.59 0.00 4942.59(ii)Repairs & Maint. For Distribution (Incl. consumables) 32831.00 32831.00 0.00 32423.72 32423.72(iii) Administrative & Gen Exp for distribution 18348.00 18348.00 0.00 15070.01 15070.01(v) Lease Rental Charges for MPLS-VPN service 6123.00 6123.00 0.00 2225.60 2225.60(vi) Complaint Management Mechanism 351.00 351.00 0.00 297.98 297.98(vii) Insurance 1128.00 1128.00 0.00 1003.17 1003.17(viii) Rates & taxes 14407.00 14407.00 0.00 8064.35 8064.35(iv) Outsourcing Expenses For Distribution related to O&M
(a) Excluding manpower related cost & hiring of vehicle cost 22995.72 22995.72 (b)Limited to manpower related cost & hiring of vehicle cost only 27788.08 27788.08
Total O & M Expenses 5340.00 129978.00 135318.00 4942.59 109868.63 114811.2210 Depreciation 15629.00 54180.00 69809.00 13942.00 54113.00 68055.0011 Interest on bond for pension fund 441.00 9963.00 10404.00 441.00 9963.00 10404.0012 Interest on capital borrowings 5089.00 44007.00 49096.00 5089.00 41964.73 47053.7313 Interest on Consumers' Security Deposit 0.00 11500 11500.00 0.00 11500.00 11500.0014 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 0.0015 Other finance charges 36.00 2384 2420.00 36.00 2384.00 2420.0016 Bad Debts 0.00 2500.00 2500.00 0.00 0.00 0.0017 Other expenses 0.00 201.00 201.00 0.00 0.00 0.0018 Principal repayment of Bonds for pension fund 0.00 30600.00 30600.00 0.00 15300.00 15300.0019 Minimum Alternate Tax 0.00 0.00 0.00 0.00 7946.80 7946.8020 Reserve for unforeseen exigencies 0.00 0.00 0.00 0.00 0.00 0.0021 Return on equity 0.00 44700.00 44700.00 0.00 37236.21 37236.2122 Gross Aggregate revenue requirement 33181.32 2064059.68 2097241.00 29743.71 1961520.98 1991264.6923 Less: Income from non-tariff sources 0.00 76392.00 76392.00 0.00 48507.47 48507.47
24Less: Recovery of expenses attributable for sale of energy to persons other than consumers and licensees 0.00 251421.00 251421.00 0.00 243303.46 243303.46
25 Less: Interest credit 0.00 1389.00 1389.00 681.32 3857.75 4539.0726 Net aggregate revenue requirement 33181.32 1734857.68 1768039.00 29062.39 1665852.30 1694914.69
AGGREGATE REVENUE REQUIREMENT OF WBSEDCL FOR FIFTH CONTROL PERIODRupees in Lakh
PROPOSEDSl No ITEM
ADMITTEDARR FOR 2017 - 2018
56790.00 56790.00
Tariff order of WBSEDCL for the year 2017 – 2018
CHAPTER – 7
TARIFF ORDER FOR 2017-18
West Bengal Electricity Regulatory Commission 165
7.1 In the previous chapter, the Commission has determined for WBSEDCL the
revenue recoverable through tariff during 2017 – 2018 and the average tariff for
the consumers of WBSEDCL for 2017 – 2018 as well. The Commission now
proceeds to determine the tariff schedule applicable to the consumers of
WBSEDCL and also the associated conditions of tariff of WBSEDCL for 2017 –
2018.
7.2 Commission observes that there is no significant change in the average tariff of
WBSEDCL for the year 2017 – 2018 with respect to the average tariff as
determined in the tariff order dated 28.10.2016 for the year 2016 – 2017 in
Case No. TP-61/ 13-14. Thus the Commission decides not to amend the tariff
for all classes of consumers of WBSEDCL and also the associated terms and
conditions of tariff as approved in the tariff order for 2016 – 2017 and
subsequent order dated 08.02.2017 in Case No OA-242/16-17. Accordingly the
tariff schedule applicable to the consumers of WBSEDCL in 2017 – 2018 are
annexed to this order and the associated terms and conditions are given in
subsequent paragraphs.
The tariff schedule as applicable to the consumers of WBSEDCL in the year
2017 – 2018 is given at Annexure – 7A1 for LV and MV consumers under
quarterly billing cycle, at Annexure – 7A2 for LV and MV consumers under
monthly billing cycle and at Annexure – 7A3 for HV and EHV consumers. The
tariff schedule fulfils the objective of attaining average tariff of each class of
consumers within 80% to 120% of the average cost of supply (689.10 paise/
kWh as per paragraph 6.6 of this order) except for lifeline and agriculture
consumers. For lifeline consumers the tariff has been kept at least of about 50%
of average cost of supply in line with the guidelines in paragraph 8.3(i) of
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 166
National Tariff Policy. The Commission has decided to give certain directives to
WBSEDCL on various matters. These are to be found at Chapter – 8.
Except rate B-IDI, B-IDIT, B-IDC, B-IDCT, C-ID, C-IDT, D-ID and D-IDT, all the
rates under L&MV category are applicable for the supply below 50 KVA. Details
of different tariff schemes of different classes of consumers and various
associated terms and conditions are specified in various regulations and in
Annexure – C1 and Annexure – C2 to the Tariff Regulations. Other associated
conditions of tariff of WBSEDCL for 2017 – 2018 shall be as follows:
7.2.1 Load Factor Rebate/ Surcharge:
7.2.1.1 In order to reduce the overall system T&D loss and to flatten the load curve by
improving the existing system load factor of WBSEDCL, the voltage-wise
graded load factor rebate applicable for the EHV and HV industrial consumers
and L&MV industrial consumer under rate (B-IDI and B-IDIT) will be as per the
following table:
LOAD FACTOR REBATE (Paise / kWh)
Range of Load Factor (LF) Supply VoltageBelow 33 kV 33 kV Above 33 kV
Above 55% Up to 60% 1 2 3Above 60% Up to 65% 7 8 9Above 65% Up to 70% 14 29 39Above 70% Up to 75% 20 35 45Above 75% Up to 80% 25 40 50Above 80% Up to 85% 30 45 55Above 85% Up to 90% 35 50 60Above 90% Up to 92% 40 55 65Above 92% Up to 95% 45 60 70Above 95% 50 65 75
The above load factor rebate shall be applicable on total quantum of energy
consumed in the billing period. (For example a 33 kV industrial consumer at
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 167
85% load factor shall be eligible for a rebate @ 45 paise / kWh on the total
quantum of energy consumed in the billing period).
7.2.1.2 Industrial consumer whose contract demand is 1.5 MVA or above will get
additional rebate as per following table subject to the condition that payment is
made within the due date.
Additional Load Factor Rebate(paise/kWh)Load Factor Rebate (Paise/kWh)
Above 65% but upto 80% 20Above 80% 35
7.2.1.3 Load factor surcharge shall continue at the prevailing rate for those categories
of consumers to whom these are applicable at present including the L&MV
industrial consumer under rate (B-IDI, B-IDIT, B-IDC and B-IDCT).
7.2.1.4 Load factor rebate and load factor surcharge shall be computed in accordance
with the formula and associated principles given in regulations 3.9.2, 3.9.3 and
3.9.4 of the Tariff Regulations and at the rates mentioned in paragraphs 7.2.1.1
to 7.2.1.3 above
7.2.2 Fixed / Demand Charge:
(i) The fixed charge shall be applicable to different categories of consumers at
the rates as shown in Annexure 7A1 and Annexure 7A2 of this tariff order.
(ii) The demand charge shall be applicable to different categories of consumers
as per rates shown in Annexure 7A2 and Annexure 7A3 to this order on the
basis of recorded demand as specified in regulation 4.3.3 of the Tariff
Regulations subject to the conditions as specified in the Tariff Regulations.
(iii) When a new consumer gets connected to the system, the computation of
fixed charge or demand charge for that month shall be made pro-rata for the
number of days of supply in that particular month.
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 168
7.2.3 Subject to the condition as specified in regulation 4.13 of the Tariff Regulations,
the minimum charge shall continue at the existing level for all consumers.
7.2.4 In case of short term supply to Pandals for community religious ceremonies, a
rebate of 30 paise / kWh on energy charge of each unit will be given if the entire
illumination is done with LED.
7.2.5 For all consumers, excluding consumers having pre-paid meters, rebate shall
be given @ 1% of the amount of the bill excluding meter rent, taxes, duties,
levies and arrears (not being the arrears due to revision of tariff) if the payment
is made within the due date.
7.2.6 A special rebate of 25 paise/kWh for 2017-18 on energy charge shall be given
to the cold storage or dairy with chilling plant under C-ID and C-IDT tariff
category. This rebate shall be given before giving effect to the rebate mentioned
in paragraph 7.2.5.
7.2.7 In order to encourage one time payment for three months bill a special rebate of
10 paise per unit for 2017 – 2018 on energy charge shall be given to the
domestic and commercial consumers under LV and MV categories covered by
quarterly billing cycle under normal or normal-TOD tariff scheme if the payment
is made for the quarter at a time within the due date stipulated for the first
month of the quarter. This rebate shall be in addition to rebate under paragraph
7.2.5 for normal meter or normal TOD meter and will be given effect after giving
effect to the rebate under paragraph 7.2.5.
7.2.8 In addition to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7 above, if
the payment is made within due date, then an additional rebate of 1% of the
amount of the bill excluding meter rent, taxes, duties, levies and arrears (not
being arrears due to revision of tariff) would be allowed to the consumers who
would pay their energy bills through e-payment facility (through web by using
net banking, debit card, credit card, electronic clearing scheme). A rebate of Rs.
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 169
5.00 will be admissible prospectively if any consumer opts for e-bill following
regulation 3.1.10 of West Bengal Electricity Regulatory Commission (Electricity
Supply Code) Regulations, 2013. These rebates are applicable after giving
effect to the rebate under paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7.
7.2.9 The additional 1% rebate as mentioned in paragraph 7.2.8 above shall also be
admissible if the payment of energy bill is made within the due date through
valued card wallet system or USSD or Instapay of Banks or online payment
through any mobile software application. This rebate shall be given after giving
effect to rebate mentioned at paragraphs 7.2.4, 7.2.5, 7.2.6 and 7.2.7 above.
7.2.10 Power Factor Rebate/ Surcharge:
7.2.10.1 The power factor rebate and surcharge shall continue for all categories of
consumers under HV & EHV including the consumers under rates T(A), T(B)
and T(M) and also for L&MV industrial consumers under rate B-IDI and B-IDIT
to whom those are already applicable at present. The power factor rebate and
surcharge shall also be applicable to the consumers under rates B-IDC, B-
IDCT, D-ID, D-IDT, C-ID and C-IDT. The rate of rebate and surcharge and the
methods of calculation of such rebate and surcharge for the year 2017- 2018
are given below:
Power Factor (PF) Range
Power Factor Rebate & Surcharge on Energy Charge in PercentageFor Consumers under TOD Tariff
For Consumers under non-TOD TariffNormal Period (6.00
AM to 5.00 PM)Peak Period (5.00 PM
to 11.00 PM)Off-peak Period (11.00
PM to 6.00 AM)Rebate
in %Surcharge
in % Rebate in % Surcharge in %
Rebate in %
Surcharge in %
Rebate in %
Surcharge in %
PF > 0.99 8.00 0.00 9.00 0.00 7.00 0.00 5.00 0.00PF > 0.98 & PF < 0.99 7.00 0.00 8.00 0.00 6.00 0.00 4.00 0.00PF > 0.97 & PF < 0.98 5.00 0.00 6.00 0.00 4.00 0.00 3.00 0.00PF > 0.96 & PF < 0.97 4.00 0.00 5.00 0.00 3.00 0.00 2.50 0.00PF > 0.95 & PF < 0. 96 3.00 0.00 4.00 0.00 2.00 0.00 2.00 0.00
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 170
7.2.10.2 The rebate and surcharge against different time periods shall be reflected in
the bill separately and shall be treated separately.
7.2.11 For short term supply, emergency supply and for supply of construction power,
there shall be no rebate or surcharge for load factor and power factor.
7.2.12 Delayed payment surcharge shall be applicable as per regulation 4.14 of the
Tariff Regulations.
7.2.13 All existing charges relating to meter rent, meter testing, meter replacement,
fuse call charges, disconnection and reconnection etc. shall continue.
7.2.14 A consumer opting for pre-paid meter shall not be required to make any
security deposit.
7.2.15 All statutory levies like Electricity Duty or any other taxes, duties etc. imposed
by the State Govt. / Central Govt. or any other competent authority shall be
extra and shall not be a part of the tariff as determined under this tariff order.
7.2.16 All the rates and conditions of tariff are effective from 1st
PF > 0.94 & PF < 0.95
April 2017 and
onwards. This rate will continue till further order of the Commission. The rates
2.25 0.00 3.00 0.00 1.50 0.00 1.50 0.00PF > 0.93 & PF < 0.94 1.50 0.00 2.00 0.00 1.00 0.00 1.00 0.00PF > 0.92 & PF < 0.93 0.75 0.00 1.00 0.00 0.50 0.00 0.50 0.00PF > 0.86 & PF < 0.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PF > 0.85 & PF < 0. 86 0.00 1.00 0.00 1.25 0.00 0.75 0.00 0.75PF > 0.84 & PF < 0. 85 0.00 2.00 0.00 2.50 0.00 1.50 0.00 1.50PF > 0.83 & PF < 0.84 0.00 2.50 0.00 3.25 0.00 1.75 0.00 1.75PF > 0.82 & PF < 0. 83 0.00 3.00 0.00 4.00 0.00 2.00 0.00 2.00PF > 0.81 & PF < 0.82 0.00 4.00 0.00 5.00 0.00 3.00 0.00 2.50PF > 0.80 & PF < 0. 81 0.00 5.00 0.00 6.00 0.00 4.00 0.00 3.00PF < 0.80 0.00 6.00 0.00 7.00 0.00 5.00 0.00 3.50
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 171
mentioned in Annexure 7A1, 7A2 and 7A3 to this order exclude the Monthly
Variable Cost Adjustment (MVCA), if any, realized / to be realized by
WBSEDCL.
7.2.17 In addition to the tariff determined under this tariff order, WBSEDCL would
further be entitled to realize additional sums towards enhanced cost of fuel and
power purchase, if any, as per provisions of the Tariff Regulations based on the
tariff of this order. While computing MVCA, the direction in paragraph 4.2 of the
order dated 10.08.2015 shall be complied with.
7.2.18 The MVCA realized by WBSEDCL from 1st
7.2.19 For any pre-paid and TOD tariff scheme, other charges shall be the charges
applicable to the consumers under respective category of non-TOD tariff.
April, 2017 shall not be considered
for adjustments, if any, as per this tariff order. The MVCA realized by
WBSEDCL is subject to truing up during Fuel and Power Purchase Cost
Adjustment (FPPCA) and Annual Performance Review (APR) for the year as
per provision of Tariff Regulation.
7.2.20 An applicant for short term supplies through pre-paid meter shall have to
comply with all necessary formalities for obtaining supply including payment in
accordance with the Regulations made by the Commission. The same will be
subject to the following conditions:
a) provision of requisite meter security deposit to be kept with licensee,
b) provision of space for installing weather-proof, safe and secure
terminal services apparatus to protect sophisticated meter; and
c) availability of prepaid-meter of appropriate capacity.
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 172
7.2.21 To avail the rate for street lighting with LED [Rate D (2)], the supply should be
metered and all the street lights under the same meter shall be illuminated with
LED. For mixed type of street lights under single meter the rate D(1) shall be
applicable.
7.2.22 For a consumer with prepaid meter who has purchased voucher prior to the
date of issue of this order, the existing voucher will continue till such voucher is
exhausted.
7.2.23 As a part of demand side management to encourage the 33 kV and 132 kV
industrial consumers having monthly consumption above 1.0 MU, to reduce
their drawal of load in peak period and to shift the load to off-peak period the
following rebates shall be allowed:
(a) a rebate equivalent to the difference of the following two will be allowed:
i) Demand charge calculated as per regulation 4.3.6 of the Tariff
Regulations; and
ii) Demand charge computed based on the maximum demand of normal
period or maximum demand of peak period or contract demand in case
of off-peak period or 85% of contract demand whichever is higher, if
those industries keep their maximum demand during off-peak period
within 150% of contract demand.
(b) Similarly for the above consumers keeping their maximum demand during
off-peak period within 150% of contract demand, a rebate equivalent to
the difference of the following two will also be allowed.
i) Additional demand charge calculated as per regulation 4.7.2 of
Tariff Regulations; and
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 173
ii) Demand charge computed based on the methodology for additional
demand charge for the normal and peak period will be as per
regulation 4.7.2 of Tariff Regulations but there will be no additional
demand charge applicable for off-peak period.
(c) Similarly for the above consumers, keeping their maximum demand
during off-peak period within 150% of contract demand, a rebate
equivalent to the difference of the following two will also be allowed:
i) Load factor rebate computed as per the rates mentioned in
paragraphs 7.2.1.1 and 7.2.1.2 following the methodology
mentioned in paragraph 7.2.1.4 of this order without considering the
additional kWh and KVA drawn during off-peak period over
contractual demand; and
ii) Load factor rebate computed as per the rates mentioned in
paragraphs 7.2.1.1 and 7.2.1.2 following the methodology
mentioned in paragraph 7.2.1.4 of this order.
7.2.24 No other rebate shall be applicable except those which are specifically
mentioned under this order or in any regulation(s).
7.2.25 Any matter, which has not been explicitly mentioned in this order, shall be
guided by regulations 2.9.8 and 2.9.9 of the Tariff Regulations.
7.3 It is open to the State Government to grant any subsidy to any consumer or any
class of consumers in the tariff determined by the Commission for WBSEDCL.
If at all any such subsidy under the provisions of the Act is intimated to
WBSEDCL and to the Commission by the Government of West Bengal with
clear indication of the consumer or class of consumers to be subsidized and the
amount of the subsidy proposed to be given is paid in advance, the tariff of such
consumer and / or the class of consumers shall be deemed to have been
Tariff order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 174
reduced accordingly as has been indicated by the State Government.
However, such direction of the State Government shall not be operative till the
payment is made by the State Government in accordance with the provisions of
the Act and the Regulations made thereunder, and the tariff as fixed by the
Commission shall remain applicable. In accordance with the Tariff Regulations,
the State Government is required to communicate the decision to WBSEDCL
and the Commission within 15 days from the date of receipt of the tariff order,
whether it shall give any subsidy to any group of consumers etc
7.4 WBSEDCL shall clearly indicate in the consumer’s bill (a) the amount payable
in terms of the tariff determined by the Commission for the year 2017-2018 (b)
the amount of the state government subsidy, if any and (c) the net amount
payable as per provisions of the Tariff Regulations.
7.5 WBSEDCL shall present to the Commission a gist of this order in accordance
with regulation 2.9.6 of the Tariff Regulation within three working days from the
date of receipt of this order for approval of the Commission, and on receipt of
the approval, shall publish the approved gist in terms of the aforesaid regulation
within four working days from the date of receipt of the approval of the
Commission.
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
Ann
exur
e-7A
1
Wes
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Reg
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Com
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175
Ener
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Cha
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P/kW
h
1.
Life
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(D
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Rat
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A(
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356
5Fi
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102
526
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723
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530
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597
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731
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617
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150
802
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900
894
All
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658
All
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652
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e
A(
DM
-R)
Com
mer
cial
(Rur
al)
Rat
e
A(
CM
-U)
Dom
estic
(R
ural
)
Dom
estic
(Urb
an)
Nor
mal
- TO
D
Rat
e
A(
DM
-U
)PP
All
units
664
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
Ann
exur
e-7A
1
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
176
Ener
gy
Cha
rge
P/kW
h
Fixe
d C
harg
e/
Dem
and
Cha
rge
* in
Rs/
KVA
/mon
Fixe
d C
harg
e/
Dem
and
Cha
rge
*
in
R
s/K
VA/m
on
Nam
e of
th
e Ta
riff
Sche
me
Qua
rter
ly
cons
umpt
ion
in
KW
H
Ener
gy C
harg
e
P/kW
h
Con
sum
er
cate
gory
Sl
No
LOW
AN
D M
EDIU
M V
OLT
AGE
CO
NSU
MER
S
Opt
iona
l tar
iff S
chem
e
Opt
iona
l Tar
iff S
chem
e - I
IO
ptio
nal T
ariff
Sch
eme
– I
Qua
rter
ly
cons
umpt
ion
in
KW
H
Con
sum
er
cate
gory
Ener
gy
Cha
rge
P/
kWh
Qua
rter
ly c
onsu
mpt
ion
in K
WH
Nam
e of
the
Tarif
f Sc
hem
e
Fixe
d C
harg
e /
Dem
and
Cha
rge
*
in R
s/K
VA/m
onTy
pe o
f Con
sum
er
Appl
icab
le T
ariff
Sch
eme
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
er
cate
gory
On
all
units
663
On
all
units
725
In M
unic
ipal
Are
aO
n al
l un
its62
0
On
all
units
663
On
all
units
725
In N
on M
unic
ipal
Ar
eaO
n al
l un
its62
0
8.
Gov
ernm
ent S
choo
lR
ate
A(C
M-I)
477
25N
OT
APPL
ICAB
LE
Prep
aid
Nor
mal
On
all U
nits
75
Rat
e
A(
CM
-PU
) (M
UN
) PP
Prep
aid
17.0
0 hr
s to
23
.00
hrs.
All
units
All
units
23.0
0 hr
s to
06
.00
hrs.
All
units
On
all U
nits
786
All
units
Rat
e
A(
CM
-II)
PPT
1774
217
.00
hrs
to
23.0
0 hr
s.A
ll un
its
Prep
aid
- TO
D
776
599
On
all U
nits
06.0
0 hr
s to
17
.00
hrs
On
all U
nits All
units
766
1717
75
837
683
683
75R
ate
A(C
M-P
U)
(MU
N)
23.0
0 hr
s to
06
.00
hrs
06.0
0 hr
s. –
17
.00
hrs.
&
20.0
0 hr
s -
23.0
0 hr
s.
06.0
0 hr
s. –
17
.00
hrs.
&
20.0
0 hr
s -
23.0
0 hr
s.
17.0
0 hr
s to
20
.00
hrs.
23.0
0 hr
s to
06
.00
hrs
Prep
aid
- TO
D
Prep
aid
- TO
D6.
Publ
ic u
tility
/ Sp
ecifi
ed In
stitu
tion
Publ
ic B
odie
s
Rat
e
A(
CM
-PU
) (N
ON
-M
UN
) PP
Nor
mal
693
Nor
mal
Rat
e
A(
Cm
-PU
) (M
un) p
pt
Rat
e
A(
Cm
-PU
) (N
on-M
un)
ppt
75
On
all U
nits
693
75
On
all U
nits
Cot
tage
Indu
stry
/ Ar
tisan
/ W
eave
rs /
Smal
l pro
duct
ion
orie
nted
es
tabl
ishm
ent n
ot
run
by e
lect
ricity
as
mot
ive
pow
er
Rat
e
A(
CM
-II)
Nor
mal
Publ
ic u
tility
/ Sp
ecifi
ed In
stitu
tion
Publ
ic B
odie
s
NO
T A
PPLI
CA
BLE
669
10.
75
17R
ate
A(C
M-II
I) PP
T
Prep
aid
- TO
D
23.0
0 hr
s to
06
.00
hrs.
06.0
0 hr
s to
17
.00
hrs
Nor
mal
Poul
try,
Duc
kery
, H
ortic
ultu
re, T
issu
e cu
lture
, Fl
oric
ultu
re, H
erba
l –
Med
icin
al –
Bio
-di
esel
Pla
nt
Farm
ing,
Foo
d Pr
oces
sing
Uni
t
Rat
e
A(
CM
-III)
300
Nex
t30
0
Firs
t
abov
e60
0
9.
17.0
0 hr
s to
20
.00
hrs.
NO
T A
PPLI
CA
BLE
717
626
731
7.
Rat
e
A(
CM
-PU
) (N
ON
-M
UN
)
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
A
nnex
ure-
7A2
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
177
Ener
gy
Char
ge
Ener
gy
Char
ge
P/kW
hP/
kWh
1. La
bour
Line
(D
omes
tic )
Rat
e
A
(DM
-L)
616
15
06.00
hrs t
o 17
.00 hr
sAl
l un
its37
8Al
l un
its36
8
17.00
hrs t
o 23
.00 hr
s.Al
l un
its74
8Al
l un
its68
8
23.00
hrs t
o 06
.00 hr
sAl
l un
its24
2Al
l un
its27
9
3.
Irriga
tion p
umpin
g for
Ag
ricult
ure (
Meter
ed
supp
ly fro
m mi
xed H
V fee
der )
Rate
C(A
)47
530
Sl
No
Cons
umer
ca
tego
ryFi
xed
Char
ge/
Dem
and
Char
ge*
in R
s/KVA
/mon
Fixe
d Ch
arge
/ De
man
d Ch
arge
*
in
Rs/K
VA/m
on
LOW
AN
D M
EDIU
M V
OLT
AG
E C
ON
SUM
ERS
Optio
nal t
ariff
Sch
eme
Optio
nal T
ariff
Sch
eme -
II Ener
gy
Char
ge
P/kW
h
Optio
nal T
ariff
Sch
eme –
IMo
nthl
y co
nsum
ptio
n in
KW
HNa
me o
f th
e Tar
iff
Sche
me
Cons
umer
ca
tego
ryMo
nthl
y co
nsum
ptio
n in
KW
H
Fixe
d Ch
arge
/ De
man
d Ch
arge
* in
Rs/K
VA/m
on
Nam
e of
the T
ariff
Sc
hem
e
Mont
hly
cons
umpt
ion
in
KWH
Type
of C
onsu
mer
Appl
icabl
e Tar
iff S
chem
e
Cons
umer
ca
tego
ryNa
me o
f the
Ta
riff
Sche
me
Rate
C(T)
Norm
al TO
D
All u
nits
Norm
al
Irriga
tion p
umpin
g for
Ag
ricult
ure
(M
etere
d)
Norm
alA
ll un
itsNO
T AP
PLIC
ABLE
202.
NOT
APPL
ICAB
LE
2017
.00 hr
s to
23.00
hrs.
23.00
hrs t
o 06
.00 hr
s
NOT
APPL
ICAB
LERa
te
C(t)p
ptPr
epaid
- TO
D
06.00
hrs t
o 17
.00 hr
s
NOT
APPL
ICAB
LENO
T AP
PLIC
ABLE
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
A
nnex
ure-
7A2
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
178
Ener
gy
Char
ge
Ener
gy
Char
ge
P/kW
hP/
kWh
Sl
No
Cons
umer
ca
tego
ryFi
xed
Char
ge/
Dem
and
Char
ge*
in R
s/KVA
/mon
Fixe
d Ch
arge
/ De
man
d Ch
arge
*
in
Rs/K
VA/m
on
LOW
AN
D M
EDIU
M V
OLT
AG
E C
ON
SUM
ERS
Optio
nal t
ariff
Sch
eme
Optio
nal T
ariff
Sch
eme -
II Ener
gy
Char
ge
P/kW
h
Optio
nal T
ariff
Sch
eme –
IMo
nthl
y co
nsum
ptio
n in
KW
HNa
me o
f th
e Tar
iff
Sche
me
Cons
umer
ca
tego
ryMo
nthl
y co
nsum
ptio
n in
KW
H
Fixe
d Ch
arge
/ De
man
d Ch
arge
* in
Rs/K
VA/m
on
Nam
e of
the T
ariff
Sc
hem
e
Mont
hly
cons
umpt
ion
in
KWH
Type
of C
onsu
mer
Appl
icabl
e Tar
iff S
chem
e
Cons
umer
ca
tego
ryNa
me o
f the
Ta
riff
Sche
me
06.00
hrs t
o 17
.00 hr
sAl
l un
its72
017
.00 hr
s to
23.00
hrs.
All
units
875
23.00
hrs t
o 06
.00 hr
sAl
l un
its68
106
.00 hr
s to
17.00
hrs
All
units
447
17.00
hrs t
o 23
.00 hr
s.Al
l un
its82
523
.00 hr
s to
06.00
hrs
All
units
279
06.00
hrs t
o 17
.00 hr
sAl
l un
its72
017
.00 hr
s to
23.00
hrs.
All
units
923
23.00
hrs t
o 06
.00 hr
sAl
l un
its67
906
.00 hr
s to
17.00
hrs
All
units
758
17.00
hrs t
o 23
.00 hr
s.Al
l un
its82
623
.00 hr
s to
06.00
hrs
All
units
715
Prep
aid -
TOD
75 75
Shor
t Ter
m Irr
igatio
n Su
pply
Rate
A(CM
) - C
PPr
epaid
- TOD
Shor
t Ter
m su
pply
for
Comm
ercia
l Plan
tation
Comm
ercia
l Plan
tation
6. 7. 5.
Prep
aid- T
OD
Rate
A(ST
)NO
T AP
PLIC
ABLE
8. Sh
ort-t
erm
Supp
ly
75NO
T AP
PLIC
ABLE
Rate
C(T)
- ST
IS20
Prep
aid- T
OD
Rate
A(CM
)-STC
P
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
A
nnex
ure-
7A2
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
179
Ener
gy
Char
ge
Ener
gy
Char
ge
P/kW
hP/
kWh
Sl
No
Cons
umer
ca
tego
ryFi
xed
Char
ge/
Dem
and
Char
ge*
in R
s/KVA
/mon
Fixe
d Ch
arge
/ De
man
d Ch
arge
*
in
Rs/K
VA/m
on
LOW
AN
D M
EDIU
M V
OLT
AG
E C
ON
SUM
ERS
Optio
nal t
ariff
Sch
eme
Optio
nal T
ariff
Sch
eme -
II Ener
gy
Char
ge
P/kW
h
Optio
nal T
ariff
Sch
eme –
IMo
nthl
y co
nsum
ptio
n in
KW
HNa
me o
f th
e Tar
iff
Sche
me
Cons
umer
ca
tego
ryMo
nthl
y co
nsum
ptio
n in
KW
H
Fixe
d Ch
arge
/ De
man
d Ch
arge
* in
Rs/K
VA/m
on
Nam
e of
the T
ariff
Sc
hem
e
Mont
hly
cons
umpt
ion
in
KWH
Type
of C
onsu
mer
Appl
icabl
e Tar
iff S
chem
e
Cons
umer
ca
tego
ryNa
me o
f the
Ta
riff
Sche
me
All
Units
698
All
Units
1047
All
Units
482
Next
1500
724
All
Units All
Units
495
Next
1500
745
All
Units
814
Abov
e20
0077
5Al
l Un
its50
512
. St
reet
Lighti
ngRa
te
D(
1)66
475
13.
Stre
et Lig
hting
with
LED
Rate
D(2)
480
75
604
620
Abov
e
50
749
All
Units
On al
l Unit
s
First
500
23.00
hrs t
o 06
.00 hr
s
06.00
hrs t
o 17
.00 hr
s
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
50
06.00
hrs t
o 17
.00 hr
s
663
50
Norm
al -
TOD
23.00
hrs t
o 06
.00 hr
s
17.00
hrs t
o 23
.00 hr
s
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
Rate
B(
I-U) t
677
Rate
B(
I-R) t
Norm
al -
TOD
10.
Indus
try (R
ural)
11.
Norm
al
Rate
B(I-U
)
Rate
B (II
)Pu
blic W
ater W
orks
&
Sewe
rage
Sys
tem
Norm
alRa
te
B(
I-R)
First
500
2000
Norm
alOn
all U
nits
Norm
alInd
ustry
(Urb
an)
712
On al
l Unit
s9.
50
40No
rmal
All
Units
NOT
APPL
ICAB
LE40
06.00
hrs.
– 17
.00 hr
s. &
20.00
hrs -
23.00
hr
s.Ra
te
B(II)
tpp
Prep
aid -
TOD
17.00
hrs t
o 20
.00 hr
s.
23.00
hrs t
o 06
.00 hr
s
NOT
APPL
ICAB
LE
798
17.00
hrs t
o 23
.00 hr
s
NOT
APPL
ICAB
LE
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
A
nnex
ure-
7A2
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
180
Ener
gy
Char
ge
Ener
gy
Char
ge
P/kW
hP/
kWh
Sl
No
Cons
umer
ca
tego
ryFi
xed
Char
ge/
Dem
and
Char
ge*
in R
s/KVA
/mon
Fixe
d Ch
arge
/ De
man
d Ch
arge
*
in
Rs/K
VA/m
on
LOW
AN
D M
EDIU
M V
OLT
AG
E C
ON
SUM
ERS
Optio
nal t
ariff
Sch
eme
Optio
nal T
ariff
Sch
eme -
II Ener
gy
Char
ge
P/kW
h
Optio
nal T
ariff
Sch
eme –
IMo
nthl
y co
nsum
ptio
n in
KW
HNa
me o
f th
e Tar
iff
Sche
me
Cons
umer
ca
tego
ryMo
nthl
y co
nsum
ptio
n in
KW
H
Fixe
d Ch
arge
/ De
man
d Ch
arge
* in
Rs/K
VA/m
on
Nam
e of
the T
ariff
Sc
hem
e
Mont
hly
cons
umpt
ion
in
KWH
Type
of C
onsu
mer
Appl
icabl
e Tar
iff S
chem
e
Cons
umer
ca
tego
ryNa
me o
f the
Ta
riff
Sche
me
On al
l Un
its68
8
On al
l Un
its75
1On
all
Units
643
06.00
hrs t
o 17
.00 hr
sOn
all
Units
772
17.00
hrs t
o 23
.00 hr
sOn
all
Units
933
23.00
hrs t
o 06
.00 hr
sOn
all
Units
732
06.00
hrs.
– 17
.00 hr
s. &
20
.00 h
rs to
23
.00 hr
s
On al
l Un
its77
2
17.00
hrs t
o 20
.00 hr
s.On
all
Units
933
23.00
hrs t
o 06
.00 hr
sOn
all
Units
732
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LE
75
NOT
APPL
ICAB
LE
75
23.00
hrs t
o 06
.00 hr
s
17.00
hrs t
o 20
.00 hr
s
Norm
al -
TOD
06.00
hrs t
o 17
.00 hr
s & 20
.00
hrs t
o 23.0
0 hrs
15.
16.
Rate
D(5)
Cons
tructi
on P
ower
Su
pply
75
Prep
aid- T
OD
Prep
aid-T
OD
75
Rate
D(6
)
Emer
genc
y Sup
ply
14.
Rate
D(4)
Norm
alPr
ivate
Educ
ation
al Ins
titutio
ns an
d Ho
spita
ls70
8On
all U
nits
NOT
APPL
ICAB
LE
NOT
APPL
ICAB
LERa
te
D(4)
t
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017-
2018
A
nnex
ure-
7A2
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
181
Ener
gy
Char
ge
Ener
gy
Char
ge
P/kW
hP/
kWh
Sl
No
Cons
umer
ca
tego
ryFi
xed
Char
ge/
Dem
and
Char
ge*
in R
s/KVA
/mon
Fixe
d Ch
arge
/ De
man
d Ch
arge
*
in
Rs/K
VA/m
on
LOW
AN
D M
EDIU
M V
OLT
AG
E C
ON
SUM
ERS
Optio
nal t
ariff
Sch
eme
Optio
nal T
ariff
Sch
eme -
II Ener
gy
Char
ge
P/kW
h
Optio
nal T
ariff
Sch
eme –
IMo
nthl
y co
nsum
ptio
n in
KW
HNa
me o
f th
e Tar
iff
Sche
me
Cons
umer
ca
tego
ryMo
nthl
y co
nsum
ptio
n in
KW
H
Fixe
d Ch
arge
/ De
man
d Ch
arge
* in
Rs/K
VA/m
on
Nam
e of
the T
ariff
Sc
hem
e
Mont
hly
cons
umpt
ion
in
KWH
Type
of C
onsu
mer
Appl
icabl
e Tar
iff S
chem
e
Cons
umer
ca
tego
ryNa
me o
f the
Ta
riff
Sche
me
On al
l Un
its68
8
On al
l Un
its75
1
On al
l Un
its63
206
.00 hr
s. –
17.00
hrs.
&
20 .0
0 hrs
to
23.00
hrs
On al
l Un
its77
2
17.00
hrs t
o 20
.00 hr
s.On
all
Units
933
23.00
hrs t
o 06
.00 hr
sOn
all
Units
732
On al
l Un
its68
4On
all
Units
821
On al
l Un
its51
3On
all
Units
704
On al
l Un
its98
5On
all
Units
464
On al
l Un
its66
4On
all
Units
930
On al
l Un
its43
9On
all
Units
582
On al
l Un
its81
5On
all
Units
384
Rate
C- I
D
Norm
alAl
l unit
s75
22.
255
255
06.00
hrs.
– 17
.00 hr
s.
23.00
hrs t
o 06
.00 hr
s
21.
Dome
stic c
onsu
mers
(50 K
VA an
d abo
ve)
Rate
D- I
DNo
rmal
All u
nits
684
35Ra
te D
- IDT
Norm
al TO
D
06.00
hrs.
– 17
.00 hr
s.
623
All u
nits
Norm
al
Othe
r tha
n Ind
ustria
l ,C
omme
rcial
and
Dome
stic c
onsu
mers
(50 K
VA an
d abo
ve)
20.
NOT
APPL
ICAB
LE17
.00 hr
s to
23.00
hrs.
NOT
APPL
ICAB
LE
23.00
hrs t
o 06
.00 hr
s
17.00
hrs t
o 23
.00 hr
s.
23.00
hrs t
o 06
.00 hr
s
698
NOT
APPL
ICAB
LERa
te
D(7)
t
NOT
APPL
ICAB
LE75
3517
.00 hr
s to
23.00
hrs.
06.00
hrs.
– 17
.00 hr
s.
NOT
APPL
ICAB
LE
255
Norm
al TO
D
Norm
al -
TOD
75
23.00
hrs t
o 06
.00 hr
s
06.00
hrs t
o 17
.00 hr
s
17.00
hrs t
o 23
.00 hr
s
Rate
C- I
DT25
5No
rmal
TOD
06.00
hrs.
– 17
.00 hr
s.
17.00
hrs t
o 23
.00 hr
s.
23.00
hrs t
o 06
.00 hr
s
Bulk
Supp
ly at
single
po
int to
Co-
oper
ative
Gr
oup H
ousin
g Soc
iety
for pr
ovidi
ng po
wer t
o its
memb
ers o
r per
son f
or
prov
iding
powe
r to i
ts em
ploye
es in
a sin
gle
prem
ises
Rate
D(7
)17
.
Not
e :-
* Fix
ed C
harg
e w
ill b
e ap
plic
able
for t
he C
onsu
mer
hav
ing
Con
trac
t Dem
and
belo
w 5
0 K
VA a
nd D
eman
d C
harg
e w
ill b
e ap
plic
able
for t
he c
onsu
mer
hav
ing
Con
trac
t Dem
and
of 5
0 K
VA a
nd a
bove
.
18.
Comm
on S
ervic
es of
Ind
ustria
l Esta
teRa
te D
(8)
NOT
APPL
ICAB
LE
19.
Indus
trial c
onsu
mers
(50 K
VA an
d abo
ve)
Rate
B- I
DINo
rmal
TOD
255
Rate
B- I
DIT
Norm
al
Rate
B- I
DCT
693
All u
nits
712
All u
nits
255
Norm
al
Prep
aid -
TOD
Comm
ercia
l con
sume
rs (5
0 KVA
and a
bove
)Ra
te B
- IDC
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
- 201
8
Ann
exur
e-7A
3
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
182
Dem
and
Cha
rge
Dem
and
Cha
rge
Sum
mer
Mon
soon
Win
ter
Sum
mer
Mon
soon
Win
ter
06.0
0 hr
s-17
.00
hrs
&20
.00
hrs-
23.0
0 hr
s
17.0
0 hr
s-20
.00
hrs
All
Uni
ts94
594
293
923
.00
hrs-
06.0
0 hr
sA
ll U
nits
494
493
492
06.0
0 hr
s-17
.00
hrs
&20
.00
hrs-
23.0
0 hr
s
17.0
0 hr
s-20
.00
hrs
All
Uni
ts92
392
091
723
.00
hrs-
06.0
0 hr
sA
ll U
nits
483
481
479
06.0
0 hr
s-17
.00
hrs
All
Uni
ts70
870
770
617
.00
hrs-
23.0
0 hr
sA
ll U
nits
850
849
848
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
531
530
529
06.0
0 hr
s-17
.00
hrs
All
Uni
ts70
370
169
917
.00
hrs-
23.0
0 hr
sA
ll U
nits
844
841
838
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
527
526
524
HIG
H &
EXT
RA
HIG
H V
OLT
AGE
CO
NSU
MER
S
Indu
strie
s
(11
KV)
Indu
strie
s
(33
KV)
384
Nor
mal
- TO
D
628
626
624
613
Rat
e F(
bt)
384
Nor
mal
- TO
D
All
Uni
ts61
5
Rat
e E(
BT)
3
384
2 4
Opt
iona
l Tar
iff S
chem
e
Con
sum
er
cate
gory
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
ptio
n pe
r m
onth
in K
WH
Ener
gy C
harg
eEn
ergy
Cha
rge
384
Nor
mal
- TO
D
Con
sum
ptio
n pe
r m
onth
in K
WH
P/kW
hP/
kWh
Con
sum
er
cate
gory
(Rs.
/ KVA
/ m
onth
)
645
643
Nam
e of
the
Tarif
f Sc
hem
e
Rat
e E
(AT)
All
Uni
ts
Sl
No
Type
of
Con
sum
erA
pplic
able
Tar
iff S
chem
e
1A
ll U
nits
647
Rat
e E
(A)
384
Nor
mal
Publ
ic U
tility
(11
KV)
(Rs.
/ KVA
/ m
onth
)
715
384
635
633
718
713
Nor
mal
- TO
D38
4
611
384
Rat
e F(
AT)
Publ
ic U
tility
(33
KV)
All
Uni
ts
719
637
717
720
All
Uni
ts
Rat
e F(
B)
Rat
e E(
B)
Nor
mal
Rat
e F(
A)N
orm
al
Nor
mal
All
Uni
ts
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
- 201
8
Ann
exur
e-7A
3
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
183
Dem
and
Cha
rge
Dem
and
Cha
rge
Sum
mer
Mon
soon
Win
ter
Sum
mer
Mon
soon
Win
ter
HIG
H &
EXT
RA
HIG
H V
OLT
AGE
CO
NSU
MER
S
Opt
iona
l Tar
iff S
chem
e
Con
sum
er
cate
gory
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
ptio
n pe
r m
onth
in K
WH
Ener
gy C
harg
eEn
ergy
Cha
rge
Con
sum
ptio
n pe
r m
onth
in K
WH
P/kW
hP/
kWh
Con
sum
er
cate
gory
(Rs.
/ KVA
/ m
onth
)
Nam
e of
the
Tarif
f Sc
hem
e
Sl
No
Type
of
Con
sum
erA
pplic
able
Tar
iff S
chem
e
(Rs.
/ KVA
/ m
onth
)
06.0
0 hr
s-17
.00
hrs
All
Uni
ts69
168
968
717
.00
hrs-
23.0
0 hr
sA
ll U
nits
829
826
823
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
518
516
515
06.0
0 hr
s-17
.00
hrs
All
Uni
ts63
162
962
717
.00
hrs-
23.0
0 hr
sA
ll U
nits
757
754
751
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
473
472
471
06.0
0 hr
s-17
.00
hrs
All
Uni
ts61
160
960
717
.00
hrs-
23.0
0 hr
sA
ll U
nits
733
730
727
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
458
457
456
06.0
0 hr
s-17
.00
hrs
All
Uni
ts68
368
168
217
.00
hrs-
23.0
0 hr
sA
ll U
nits
1009
1006
1008
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
402
400
401
06.0
0 hr
s-17
.00
hrs
All
Uni
ts74
374
173
917
.00
hrs-
23.0
0 hr
sA
ll U
nits
1025
1022
1019
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
509
508
507
Indu
strie
s
(400
KV)
NO
T A
PPLI
CA
BLE
713
All
Uni
ts
7
Rat
e H
(BT)
34R
ate
S(G
T)
Rat
e H
(B)
Nor
mal
384
Rat
e J(
BT)
709
Rat
e
S(C
PT)
95In
dust
ries
(1
32 K
V)
Com
mer
cial
Pl
anta
tion
Nor
mal
- TO
D
Com
mun
ity
Irrig
atio
n/
Irrig
atio
n8
Nor
mal
- TO
D
Indu
strie
s
(220
KV)
Rat
e I(B
T)N
orm
al -
TOD
Nor
mal
- TO
D
6N
OT
APPL
ICAB
LE
384
NO
T A
PPLI
CA
BLE
Nor
mal
- TO
D71
1
384
NO
T AP
PLIC
ABLE
384
384
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
- 201
8
Ann
exur
e-7A
3
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
184
Dem
and
Cha
rge
Dem
and
Cha
rge
Sum
mer
Mon
soon
Win
ter
Sum
mer
Mon
soon
Win
ter
HIG
H &
EXT
RA
HIG
H V
OLT
AGE
CO
NSU
MER
S
Opt
iona
l Tar
iff S
chem
e
Con
sum
er
cate
gory
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
ptio
n pe
r m
onth
in K
WH
Ener
gy C
harg
eEn
ergy
Cha
rge
Con
sum
ptio
n pe
r m
onth
in K
WH
P/kW
hP/
kWh
Con
sum
er
cate
gory
(Rs.
/ KVA
/ m
onth
)
Nam
e of
the
Tarif
f Sc
hem
e
Sl
No
Type
of
Con
sum
erA
pplic
able
Tar
iff S
chem
e
(Rs.
/ KVA
/ m
onth
)
06.0
0 hr
s-17
.00
hrs
All
Uni
ts72
371
972
117
.00
hrs-
23.0
0 hr
sA
ll U
nits
1072
1066
1069
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
422
420
421
06.0
0 hr
s-17
.00
hrs
All
Uni
ts74
374
173
917
.00
hrs-
23.0
0 hr
sA
ll U
nits
1025
1022
1019
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
509
508
507
06.0
0 hr
s-17
.00
hrs
All
Uni
ts67
767
667
517
.00
hrs-
23.0
0 hr
sA
ll U
nits
1016
1013
1010
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
399
398
397
06.0
0 hr
s-17
.00
hrs
All
Uni
ts67
667
567
417
.00
hrs-
23.0
0 hr
sA
ll U
nits
1014
1013
1011
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
398
397
396
Rat
e
S(
CPT
-ST)
NO
T A
PPLI
CA
BLE
NO
T A
PPLI
CA
BLE
692
Nor
mal
- TO
DR
ate
E(
CT
)38
4
384
Nor
mal
- TO
D68
768
938
4
Shor
t Ter
m
Supp
ly fo
r C
omm
erci
al
Plan
tatio
n
Rat
e
F(C
T)A
ll U
nits
Rat
e
F(
C )
691
Shor
t Ter
m
Irrig
atio
n Su
pply
10
694
All
Uni
ts
11 13N
orm
al
Com
mer
cial
(11
KV)
Rat
e
E(
C )
12
Com
mer
cial
(33
KV)
384
384
Rat
e
S(
GT-
ST)
Nor
mal
Nor
mal
- TO
D
Nor
mal
- TO
D
34
690
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
- 201
8
Ann
exur
e-7A
3
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
185
Dem
and
Cha
rge
Dem
and
Cha
rge
Sum
mer
Mon
soon
Win
ter
Sum
mer
Mon
soon
Win
ter
HIG
H &
EXT
RA
HIG
H V
OLT
AGE
CO
NSU
MER
S
Opt
iona
l Tar
iff S
chem
e
Con
sum
er
cate
gory
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
ptio
n pe
r m
onth
in K
WH
Ener
gy C
harg
eEn
ergy
Cha
rge
Con
sum
ptio
n pe
r m
onth
in K
WH
P/kW
hP/
kWh
Con
sum
er
cate
gory
(Rs.
/ KVA
/ m
onth
)
Nam
e of
the
Tarif
f Sc
hem
e
Sl
No
Type
of
Con
sum
erA
pplic
able
Tar
iff S
chem
e
(Rs.
/ KVA
/ m
onth
)
06.0
0 hr
s-17
.00
hrs
All
Uni
ts66
866
666
417
.00
hrs-
23.0
0 hr
sA
ll U
nits
1003
1001
999
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
395
394
393
06.0
0 hr
s-17
.00
hrs
All
Uni
ts70
570
370
117
.00
hrs-
23.0
0 hr
sA
ll U
nits
793
791
789
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
647
645
644
06.0
0 hr
s-17
.00
hrs
&
20.0
0 hr
s-23
.00
hrs
17.0
0 hr
s-20
.00
hrs
All
Uni
ts94
494
193
823
.00
hrs-
06.0
0 hr
sA
ll U
nits
494
493
492
06.0
0 hr
s-17
.00
hrs
&&
20.0
0 hr
s-23
.00
hrs
17.0
0 hr
s-20
.00
hrs
All
Uni
ts92
392
091
723
.00
hrs-
06.0
0 hr
sA
ll U
nits
482
480
478
643
686
Nor
mal
- TO
D
NO
T A
PPLI
CA
BLE
384
Nor
mal
- TO
D
35
632
Spor
ts C
ompl
ex &
A
udito
rium
run
by
Gov
t./ lo
cal
bodi
es fo
r cu
ltura
l affa
irs
Rat
e
S(
C )
18N
orm
al
684
384
All
Uni
ts
384
645
Rat
e
E(PW
T)
Nor
mal
- TO
D
Rat
e
H(C
T)
35 384
Rat
e
S(D
T)
Nor
mal
- TO
D
634
Rat
e
F(
PW)
All
Uni
ts68
8R
ate
H(C
)
34
17
726
724
728
750
748
630
15
Publ
ic W
ater
W
orks
&
Sew
erag
e
(33
KV)
Nor
mal
751
All
Uni
ts
All
Uni
tsN
orm
alPu
blic
Wat
er
Wor
ks &
Se
wer
age
(1
1 K
V)
All
Uni
ts
647
14 16R
ate
E (P
W)
Dom
estic
Com
mer
cial
(132
KV)
Nor
mal
Nor
mal
Rat
e
S(
D)
614
612
610
All
Uni
ts
All
Uni
ts
Rat
e
F(PW
T)38
4
628
626
624
384
Tarif
f Ord
er o
f WB
SED
CL
for t
he y
ear 2
017
- 201
8
Ann
exur
e-7A
3
Wes
t Ben
gal E
lect
ricity
Reg
ulat
ory
Com
mis
sion
186
Dem
and
Cha
rge
Dem
and
Cha
rge
Sum
mer
Mon
soon
Win
ter
Sum
mer
Mon
soon
Win
ter
HIG
H &
EXT
RA
HIG
H V
OLT
AGE
CO
NSU
MER
S
Opt
iona
l Tar
iff S
chem
e
Con
sum
er
cate
gory
Nam
e of
the
Tarif
f Sc
hem
e
Con
sum
ptio
n pe
r m
onth
in K
WH
Ener
gy C
harg
eEn
ergy
Cha
rge
Con
sum
ptio
n pe
r m
onth
in K
WH
P/kW
hP/
kWh
Con
sum
er
cate
gory
(Rs.
/ KVA
/ m
onth
)
Nam
e of
the
Tarif
f Sc
hem
e
Sl
No
Type
of
Con
sum
erA
pplic
able
Tar
iff S
chem
e
(Rs.
/ KVA
/ m
onth
)
06.0
0 hr
s-17
.00
hrs
All
Uni
ts59
659
559
417
.00
hrs-
23.0
0 hr
sA
ll U
nits
834
833
831
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
393
392
391
06.0
0 hr
s-17
.00
hrs
All
Uni
ts75
275
074
817
.00
hrs-
23.0
0 hr
sA
ll U
nits
1057
1054
1051
23.0
0 hr
s-
06.0
0 hr
sA
ll U
nits
499
497
495
06.0
0 hr
s-17
.00
hrs
&
20.0
0 hr
s.-
23.0
0 hr
s
All
Uni
ts75
275
074
817
.00
hrs-
20.0
0 hr
sA
ll U
nits
1057
1054
1051
23.0
0 hr
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4
Tariff Order of WBSEDCL for the year 2017 – 2018
CHAPTER – 8 DIRECTIONS
West Bengal Electricity Regulatory Commission 188
8.1 The Commission has given some directions at different paragraphs in Chapter 4
and Chapter 5 of this order while determining the variable cost and fixed cost of
WBSEDCL. WBSEDCL will comply with those directions.
8.2 Commission also gave directions at paragraphs 4.2, 4.3, 4.4, 4.5, 4.6 and 4.23
of the Tariff order for the year 2016-2017 which shall also continue to remain in
force in this order.
8.3 WBSEDCL has submitted compliance report against some of the directions given
in the tariff order for 2016-2017 and made their submission against rest of the
directions given in the said order. In consideration of the above, the Commission
further directs WBSEDCL to comply with the following directions.
8.4 While submitting the ARR application of any year, the following sets of
information are to be provided by WBSEDCL in the notes of Financial statement
of Annual Accounts of any ensuing years or through Auditor’s Certificate, in the
manner as described below:
a) All the expenditure or cost element considered under tariff applications
are to be provided separately for distribution function, sale of energy
function and generation function for the regulatory requirement.
b) Any penalty, fine and compensation paid under the Electricity Act 2003
shall also be shown separately for distribution function, sale of energy
function and generation function.
c) Any fine, penalty or compensation paid under any other statute other
than the Electricity Act 2003 shall be mentioned separately for
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 189
distribution function, sale of energy function and generation function
respectively along with the reference of the statute.
d) The figure of AT&C loss for the years concerned in line with the
computation methodology as specified in Form 1.8 of the Tariff
Regulations is to be provided. Beside that AT&C loss calculated with
arrear recovery done for the period prior to the year for which the
account is prepared shall also be shown separately.
e) In the notes of the past Annual Accounts, Repair & Maintenance is
shown in three separate heads of distribution & metering, generation and
other heads. This ‘other heads’ to be specified in terms of specific
activities.
In case of non submission of the above documents/ information the application of
APR will not be admitted.
8.5 While submitting APR application of any ensuing year, WBSEDCL shall submit
the certificate from the statutory auditor of the annual accounts of the said year
for the following parameters:
a) Based on fixed asset register the parameters to be submitted are:
i) The distribution line length and transmission line (if any which is
essential part of distribution system as per section 2(72) of
Electricity Act 2003) length in CKM for each level of Voltage
related to the assets of WBSEDCL. For the asset which is not
owned by the WBSEDCL but maintained by WBSEDCL shall be
shown separately.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 190
ii) Similarly the number of transformers and total installed capacity
of transformers in MVA or KVA for each category of transformers
for distribution system are to be provided.
b) For the year concerned under the APR the actual number of Consumers,
the consumption level in MU, total connected load in KVA and
chargeable demand in kVA for each category of consumers for each
season on whom the tariff rate has been issued in the tariff order of the
year corresponding to the APR under consideration.
c) Impact of sale to consumers in multiple licensee area at a tariff lower
than the ceiling tariff declared by the Commission, if any.
d) The figure of distribution loss and AT&C loss for the year concerned
under APR as per Form 1.7 and 1.8 of the Tariff Regulations.
e) A statement showing the manpower engaged in different fields of activity
which is now outsourced partly or fully vis-à-vis the manpower engaged
from regular establishment against the respective field of activities.
f) Copies of the audited accounts of all the terminal benefit funds for the
year for which APR is under consideration in a complete shape and not
by any selective pages.
g) A statement showing monthly deposit in different terminal funds for the
year for which APR is under consideration in persuasion to the direction
given in paragraph 8.10 below.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 191
h) The detailed breakup of number of vehicles that cover all the three shifts
of a customer care centre, number of vehicles that cover only two shifts
of a customer care centre and number of vehicles that cover only one
shift of a customer care centre along with the respective expenditures for
each such category. Also give the total number of customer care centers
and customer care centers situated in urban areas as per definition in
regulation 2.1(xxv) of West Bengal Electricity Regulatory Commission
(Standards of performance of Licensees relating to consumer services)
Regulations 2010, as amended (in short SOP Regulations). The above
information shall be submitted in relation to MCSU services. For hiring
vehicle for high voltage services such data shall be submitted separately.
i) A detailed breakup showing total expenditure and employee strength
against each level of all categories of employees including the whole
time directors of the board. If any director or employee discharge any
function of other companies also then the allocation of cost among the
companies shall be shown separately and distinctly against each level.
j) With the application of APR, WBSEDCL shall also enclose their
compliance report on Renewable Purchase Obligation of power in
pursuance to clause 8 of the West Bengal Electricity Regulatory
Commission (Cogeneration and Generation of Electricity from
Renewable Sources of Energy) Regulations, 2013 or any of its
subsequent amendment or replacement in future.
In case of non submission of the above documents the application of APR will
not be admitted.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 192
8.6 In case of expenditure at a level higher than the admitted amount under any
uncontrollable factor in this tariff order on account of fixed charges, while
submitting APR application of any ensuing year WBSEDCL has to justify such
higher expenditure in details with supporting documents and evidence on the
basis of which the Commission will take its decision during truing up exercise and
it may be noted that without sufficient justification the excess expenditure may
not be admitted in the APR fully or partly. Similarly for controllable factors, where
applicable as per the Tariff Regulations, for the same reasons supporting
documents and evidence are to be submitted to justify their claim. While truing up
any uncontrollable factor on account of fixed charges, the actual business
volume parameter (Distribution line length or consumer strength) and actual
inflation rate to which such uncontrollable item is sensitive will be considered in
the same manner and principle as determined under this tariff subject to the
limitation as per the Tariff Regulations. However, where applicable, as per this
tariff order the increase in ratio of expenses in terms of percentage on any item
and the increase in sensitivity parameter will remain the same as that of this tariff
order.
8.7 While submitting application of APR for any ensuing year by the licensee, if such
application shows any net claim for that year after considering the concerned
FPPCA, then in such case the licensee shall suggest in specific terms the
ensuing year(s) in which they intend to recover such claim and by what amount.
The Licensee shall also show the consequential impact of such recovery in the
expected average cost of supply in those ensuing years after considering the
total revenue recoverable through tariff. The total revenue recoverable through
tariff means the summated amount of the Net Aggregate Revenue Requirement
plus all other amount on account of any release of regulatory asset, FPPCA and
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 193
APR of its own and FCA of WBPDCL as applicable for any year which is being
already decided by the Commission in earlier orders. They shall also mention the
carrying cost, if necessary, where it is applicable in terms of the Tariff
Regulations and different orders and direction of the Commission in this respect.
This consequential impact on tariff shall also be provided in the gist of the APR
application.
In case of non submission of the above information the application of APR will
not be admitted.
8.8 In order to ensure that in future actuarial valuation of terminal benefit fund can be
kept in control in a better way by avoiding carrying cost of such liability in future
the following is to be adhered to:
a) WBSEDCL shall ensure that at least one-twelfth of the amount on
account of terminal benefit, as a part of employee cost admitted in the
tariff order, is to be deposited in different terminal benefit funds every
month as a first charge item. This process will continue beyond 2017 –
2018 till issuance of next tariff order.
b) On the head of terminal benefit fund, if there is shortage in the deposited
amount in the terminal benefit fund admitted in employee cost through
this order, the balance amount of contribution to terminal benefit fund is
required to be deposited as first charge item over and above what had
already been deposited for the year, from the effective date of recovery of
the recoverable amount against this order from the very first day. So, it is
directed that the balance amount of contribution as discussed above to
terminal benefit fund for the year, i.e., the difference between the amount
of contribution to terminal benefit funds as allowed in this order as a part
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 194
of employee cost and that has already been deposited in the fund for the
year, is to be deposited in the respective different terminal benefit funds.
Such balance amount is to be deposited in different terminal benefit funds
in not more than 12 monthly equal installments from the date on which
the recovery through tariff against this order will start.
c) While submitting application for APR of any ensuing year, WBSEDCL
shall show through audited accounts of different terminal benefit funds
that the contribution to the different terminal benefit funds during the
concerned year as a part of employee cost is duly deposited in the
terminal benefit funds.
In case of non-deposit of amount admitted for terminal benefit fund as provided in
(a) to (c) above in the respective fund as directed, Commission may withhold or
deduct the same amount equivalent to amount not deposited.
8.9 WBSEDCL shall furnish the details of the capital investments in distribution
systems during the last 10 years. WBSEDCL shall also submit the benefits
achieved with the implementation of such capital investment vis-à-vis benefits
projected during taking up such investments along with the cost incurred under
each major head.
8.10 Expenses on Complaint Management Mechanism, collection expenses and lease
rental expenses will be treated as Controllable factor.
8.11 The Commission is statutorily duty bound to promote generation of electricity
from following sources of energy:
i) Electricity generation from renewable sources
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 195
ii) Co-generation of electricity from renewable sources.
iii) Co-generation of electricity from fossil fuel sources.
iv) Co-generation of electricity from hybrid sources of fossil fuel /
conventional sources and renewable sources.
In order to promote above mentioned type of generation of electricity by applying
regulations 8.3 and 8.4 of the Tariff Regulations and regulations 19.1 and 19.2 of
the West Bengal Electricity Regulatory Commission (Cogeneration and
Generation of Electricity from Renewable Sources of Energy) Regulations, 2013,
the Commission decides that from the APR of the ensuing year a deduction of
5% from Return on Equity will be done if WBSEDCL fails to comply with the
Renewable Purchase Obligation as per West Bengal Electricity Regulatory
Commission (Cogeneration and Generation of Electricity from Renewable
Sources of Energy) Regulations, 2013 or any of its subsequent amendment. In
this context, the Commission also directs that WBSEDCL shall advertise on
important national media inviting the interested parties for supplying renewable
and cogeneration electricity on every four months for next two years instead of
one time in a year in pursuance of the regulation 3.5 of the said Regulations.
WBSEDCL is further directed to submit henceforth quarterly status report on
Renewable Purchase Obligation and initiatives taken to fulfill its RPO.
8.12 Any application for Power Purchase Agreement (PPA), except for short term PPA
meaning PPA for a period not exceeding one year, submitted by the licensee to
the Commission for approval of the PPA shall go through the process of inviting
suggestions and objections from all stakeholders through at least three widely
circulated newspaper publications for consideration of the Commission of all such
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 196
suggestions and objections as a process of the approval procedure and
subsequent to such approval only, the PPA can be executed by the licensee and
the seller of the power. While publishing the gist the licensee shall adhere to the
order of the Commission dated 31.05.2017 in Case No SM-16/17-18. For this
purpose, while submitting the application for approval of the said PPA the
licensee shall also give a draft gist for newspaper publication for approval of the
Commission. On getting approved gist from the Commission the gist shall be
published in the newspapers within 5 working days. Such gist shall also be
posted in the website along with a copy of the application and PPA from the date
of gist publication to at least the last date of submission of suggestions and
objections as will be mentioned in the gist. The gist shall cover the name of seller
of the power, type of specific source (such as coal, gas, hydro, solar, etc.), major
important parameters that are required under the Tariff Regulations for such
purchase and the important points of the purpose of such procurement. The
application submitted shall have the above points of the gist along with detailed
justification of such proposed procurement along with all the information and
parameters that are required under the Tariff Regulations or Regulations of the
Commission related to renewable and cogeneration sources of energy. The
application shall also clearly spell out as to how the interest of the consumer as
well as of the licensee has been safeguarded in the PPA. The application without
such gist and the points as mentioned shall not be admitted. This process is done
in order to meet the ends of justice after keeping consistency with the Electricity
Act, 2003.
WBSEDCL shall adhere to the above direction of the Commission.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 197
8.13 While submitting application of APR WBSEDCL shall also submit a detailed
calculation showing that revenue collected against the supply of electricity to
consumers at a rate below the tariff of this order in pursuance to the application
of paragraph 7.3.21 and concerned clauses of Tariff Regulations satisfying the
condition that the consumers covered by application of such paragraph through
the notification dated 23.09.2014 published by WBSEDCL have been supplied
electricity at a price not below the cost of supply to them and revenue recovered
from them is commensurate with such price as well as their consumption.
WBSEDCL has also to establish that no loss on this head has been passed on to
other consumers through the ARR determination process in the APR.
8.14 In order to reduce the impact in FPPCA henceforth while applying the formula
of MVCA the component of adjustment Adj
8.15 As UI charge has been repealed and deviation charge is being introduced, the
Commission by applying regulation 8.3 of this Tariff Regulations will consider
N_UI_R as zero for applying the regulation 2.6.10 of the Tariff Regulations during
APR order of the fifth control period.
shall be duly applied by finding out
the deviation in recovery of variable cost from sale side computation for the
period concerned in pursuance to note (a) under paragraph A of the Schedule
– 7B of the Tariff Regulations.
8.16 All the distribution licensees and generating companies shall follow regulation
5.6.5.1 of the Tariff Regulations in its true spirit. According to regulation 5.6.5.1 of
the Tariff Regulations the interest on working capital requirement of a generating
company or a licensee shall be assessed on normative basis @ 18% on a base
amount derived by summation of annual fixed charges, fuel cost and power
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 198
purchase cost reduced by certain elements of the ARR. It has also been
mentioned there that where Monthly Fuel Cost Adjustment (MFCA) or Monthly
Variable Cost Adjustment (MVCA) exists, in that case for interest on working
capital requirement the above normative basis shall be 10% instead of 18% on
the said base amount. In this context it may be noted by all stakeholders that any
distribution licensee or generating company on which collection of MFCA and
MVCA, as the case may be, is applicable as per Tariff Regulations, shall not be
entitled to claim interest on the above referred normative basis of 18% even on
the plea of not claiming MFCA or MVCA throughout any financial year.
8.17 WBSEDCL is directed to continue with initiative taken by them for energy
conservation to flatten the load curve in the following ways:
(i) by retrofitting conventional light with LED lamp, energy efficiency appliances
like fans, A/C, etc; and
(ii) by arranging load management awareness programme for the consumers.
(iii) WBSEDCL to submit proposal for introducing TOD metering for high end
domestic consumers.
WBSEDCL shall also continue with the initiative taken in development of roof-top
solar PV and other renewable sources of energy.
8.18 WBSEDCL is directed to submit a status report of implementation of HVDS
project, IPDS and DDUGJY schemes within 3 (three) months from the date of
this order. WBSEDCL shall also submit status report of all the projects which
were funded / aided / supported by Central and State Government.
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 199
8.19 WBSEDCL is directed to complete 11 kV agricultural feeder segregation within
six months of this order and submit a status report within three months of this
order. WBSEDCL is also directed to conduct energy audit of all 33kV feeders
and rural, urban and mixed type 11 kV feeders separately and submit the report
indicating the action already taken / to be taken within specific time line for
reduction of AT&C loss within 3 (three) months of this order.
8.20 WBSEDCL is directed to carry out energy audit of that part of LV & MV system
where meters have been installed on the LV side of the DTR and submit the
report within 6 (six) months from the date of this order. WBSEDCL is also
directed to submit status report of installation of meters with DTR along with the
time frame to complete the same within 3 (three) months from the date of this
order.
8.21 WBSEDCL is directed to strictly comply with the regulation 4.23 of the Tariff
Regulations and calculate the contracted demand annually for each consumer.
WBSEDCL shall submit a compliance report in this regard along with their
application of APR. WBSEDCL is also to plan for optimum use of WBPDCL
generation to handle emergent conditions and optimize power purchase from
other sources including power exchange.
8.22 WBSEDL was directed to take up a pilot project on implementation of smart grid /
Advanced Metering Infrastructure (AMI) vide paragraph 4.29 of order dated
28.10.2016 in Case No TP-61/13-14. A project has been taken up by WBSEDCL
at Siliguri Town long back and it is reported to be in progress. WBSEDCL is
directed to complete the project immediately. WBSEDCL is also directed to
submit the present status report in details along with the target completion date to
the Commission within 3 (three) months from the date of this order. On
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 200
completion of the smart grid project WBSEDCL is to share its feed back with the
Commission.
8.23 WBSEDCL shall prioritize areas having high commercial loss, actions
contemplated to be taken for reduction of loss, improvement of billing and
collection efficiency (installation of smart meters, prepaid meters, pole mounted
meters, etc.) and spot collection of payment within 6 (six) months from the date of
this order. Earlier WBSEDCL had been directed to submit roadmap to achieve
reduction of cost of distribution nearer Re. 1.00 and reduction of technical losses
to certain percentages for different class of areas. WBSEDCL through their
different communications submitted about various initiatives already undertaken
by them and planned to be undertaken, though no specific roadmap has been
indicated. While appreciating the steps being undertaken by WBSEDCL, it is
directed to submit their plan of completion of the initiatives within 3 (three)
months from the date of this order.
8.24 WBSEDCL shall further submit consumption and AT&C losses for each voltage
level as below:
8.25 WBSEDCL shall conduct safety audit for its establishments including generating
stations and submit the report along with recommendations of auditor and
implementation plan with the APR application for the year 2017-18.
Voltage Level
Input energy to the voltage
l l
Sale to consumer/ li
Supply to lower voltage
l l
AT&C Loss
33 kV
11 kV
L&MV
Tariff Order of WBSEDCL for the year 2017 – 2018
West Bengal Electricity Regulatory Commission 201
8.26 WBSEDCL shall optimize the utilization of the units of Purulia Pumped Storage
Plant and other hydro units for efficiently supporting peak demands and
managing emergency situations.
8.27 WBSEDCL shall submit along with their APR petition for the year 2017-18, a list
indicating details of all contracts above Rs. 1 Crore on capital expenditure which
were awarded within last five years from the date of this order and where the
contract values were exceeded by more than 10% of the estimate. The reason
for such deviation shall be indicated for every such case.
8.28 WBSEDCL is directed that
a) all kind of short term power purchase have to be executed through the
process of reverse bidding in the national portal, as far as possible.
b) While purchasing renewable power the process of reverse e-bidding in
appropriate model in line with SECI shall be followed.
8.29 While submitting application of APR for the year 2017 – 2018, WBSEDCL shall
have to submit the following through affidavit:
a) That no expenditure has been claimed by WBSEDCL through the APR
petition on employee or infrastructure or any other support or O&M activity
pertaining to any other business of WBSEDCL not in relation to their
licensed business.
b) The list of cases related to Tariff, Annual Performance Review (APR) and
Fuel and Power Purchase Cost Adjustment (FPPCA) filed or applied for
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