Annual Report
2003-04

General:

1. The Rajasthan Electricity Regulatory Commission has been functioning since January 2,2000. Shri Arun Kumar continued to be the Chairman of the Commission during the year. Shri Shanti Prasad also continued as Member of the Commission.Shri S.M. Dharendra joined as Member on 16^th May 2003 against the vacancy caused by the sad demise of Shri P.K.Das, Member in January 2003.

2. Shri P.Dayal continued as Secretary to the Commission till 31^st May 2003. He was succeeded by Shri Alok who remained Secretary of the Commission from 2^nd June 2003 to 27^th January 2004. Shri S.S.Rajvi joined as Secretary of the Commission on 13th February 2004 and remained Secretary during the rest of the year.

Electricity Act 2003:

3. The Electricity Act 2003 came into force with effect from 10^th June 2003.Under the provisions of this Act, the provisions of the Rajasthan Power Sector Reforms Act 1999 were saved to the extent they were not repugnant to the provisions of the Electricity Act 2003. The new Act also provided for framing of regulations by the Commission for giving effect to the provisions of the Act like licensing, supply code, terms & conditions for determination of tariff, providing open access to consumers, removal of consumer grievances etc.

4. The Commission reviewed the various existing regulations issued by the Commission under the Rajasthan Power Sector Reforms Act and made necessary modifications in them to bring their provisions in conformity with the provisions of the Electricity Act 2003.For this purpose; amendments were made in the following regulations:

i. Rajasthan Electricity Regulatory Commission (Fees for Petitions) Regulations 2000

ii. Rajasthan Electricity Regulatory Commission (Appointment of Consultants) Regulations 2000

iii. Rajasthan Electricity Regulatory Commission (Appeals against orders of Electrical Inspector) Regulations 2002

iv. Rajasthan Electricity Regulatory Commission (Conduct of Business) Regulations 2000

5. However, prior to coming into force of the new Act, the Commission, on 28^th May 03, under the RPSR Act 1999, issued Rajasthan Electricity Regulatory Commission (Informing consumers of their rights) Regulations, 2003, so as to make it mandatory for the licensees to inform the consumers of their rights on various electricity matters.

Under the RPSR Act, 1999 the Commission also issued the following two regulations:

i. Rajasthan Electricity Regulatory Commission (Transmission Licensee’s Standards of Performance) Regulations 2004

ii. Amendments in the Rajasthan Electricity Regulatory Commission (Distribution Licensee’s Standards of Performance) Regulations, 2003

6. The following regulations were repealed as the provisions of the Electricity Act 2003 made them redundant:

i. The Rajasthan Electricity Regulatory Commission (Arbitration) Regulations, 2002.

ii. The Rajasthan Electricity Regulatory Commission (Generation of Electricity) Regulations, 2002.

7. The Commission framed regulations relating to the following matters:

(a) Consumer grievances

The Electricity Act, 2003, requires the distribution licensee to set up within six months of coming into force of the Act, a forum for redressal of grievances of consumers in accordance with guidelines specified by the State Commission. The Commission therefore issued Rajasthan Electricity Regulatory Commission (Guidelines for redressal of grievances) Regulations, 2003 on 3.11.03 allowing sufficient time to three Vidyut Vitran Nigams to set up forum within the time allowed.

(b) Licensing regulations

Under the Rajasthan Power Sector Reforms Act, 1999 rules for grant of a licence for transmission or distribution and supply of electricity were framed by the State Government. The Electricity Act 2003, required the State Commission to frame regulations for grant of a licence. Consequently, the Commission issued the Rajasthan Electricity Regulatory Commission (Licensing) Regulations 2004 on 15.3.04. As required by the Electricity Act 2003, the Commission also framed Rajasthan Electricity Regulatory Commission (Conditions of Licence) Regulations, 2004.

Under the Electricity Act 2003, the following new regulations were framed:

i) Rajasthan Electricity Regulatory Commission (Settlement of Disputes by Ombudsman) Regulations ,2003

ii) Rajasthan Electricity Regulatory Commission (Transaction of Business) Regulations ,2004

iii) Rajasthan Electricity Regulatory Commission (Power purchase & procurement process of Distribution licensee)Regulations, 2004

8. In view of the provisions of sub-section (2) of section 181 of the Electricity Act 2003, the above regulations were issued after previous publication. The Commission had adopted the procedure to issue a public notice and a press note in newspapers informing public of the draft of a regulation prepared by the Commission and inviting suggestions or comments on the draft by a stipulated date. The suggestions and comments received were considered by the Commission. All the persons who had given suggestions or comments on draft were also personally heard in a public hearing before the regulations were finalized.

9. Action taken by the Commission on other important features of the Electricity Act, 2003 are discussed below:

(a) Electricity Supply Code

Section 50 of the Electricity Act 2003 requires the State Commission to specify an Electricity Supply Code to provide for recovery of electricity charges, intervals for billing of electricity charges, disconnection and restoration of supply of electricity etc. Section 43 of the Act requires a distribution licensee to supply electricity to a person applying for such supply within a period of one month. The Act, however, authorizes the State Regulatory Commission to lay down the period within which supply of electricity is to be granted in case such supply requires extension of distribution mains or commissioning of new sub-stations. The Act also authorizes the Commission to specify the charges, which the distribution licensee may recover for providing electric line or electric plant to be used for the purpose of giving electric supply. The amount of security, which a licensee may require from a consumer for the payment to him of all monies in respect of electricity supplied to such consumer and for the electric line or plant or meter provided by the licensee, is also to be specified by the Commission. The Act also requires the Commission to specify the time within which all supplies are to be made through meters.

In pursuance of provisions of the Act, the Commission prepared a draft of the regulations to be called Rajasthan Electricity Regulatory Commission (Electricity Supply Code and Connected Matters) Regulations, 2004. In order to get a feedback on the draft provisions and also to enable the Vidyut Vitran Nigams to revise their general conditions of supply to consumers in conformity with the draft Supply Code, the Commission sent copies of the draft to the three Vidyut Vitran Nigams. The Commission also held a meeting with the Secretary, Energy Department, Government of Rajasthan, Chairman and the Managing Directors of the three Vitran Nigams on March 10, 2004 for eliciting their views on the draft regulations. After the meeting, the Commission finalised the draft for inviting suggestions from general public on the proposed regulations.

(b) Open Access

In order to promote development of a market in electricity, the Electricity Act, 2003 has envisaged several activities and one of the important features in this regard is that of Open Access. Open Access means non-discriminatory provision for the use of transmission lines or distribution system by any licensee, consumer or a person engaged in generation for which the Commission is to frame regulations. As the concept of open access for consumers and others was new, the Commission considered it necessary to avail the services of a consultant for preparing a background note and draft of the regulations to be framed by the Commission. Through the process of open tender, M/s Feedback Ventures, Mumbai were appointed as Consultants to the Commission on December 15, 2003.

After a few discussions with the Commission, the Consultants submitted to the Commission, a draft report along with draft of the regulations on January 28, 2004. The Commission considered the drafts and sent its observations to the Consultants who submitted their revised draft on February 23, 2004. The draft regulations and the background note were finalised after discussions with the Consultants and a public notice was issued in Hindi and English Newspapers on March 10, 2004 inviting comments/suggestions on the drafts from general public. The last date for receiving suggestions by the Commission was fixed for April 12, 2004.

Another important feature of the Electricity Act, 2003 is that trading in the electricity has been recognised as a distinct activity. Provisions relating to trading are also expected to promote development of market in electricity. Trading has been defined in the Act as purchase of electricity for resale thereof. The Act envisages grant of licence to a trader in electricity by the Central Electricity Regulatory Commission in case of interstate trading and by the State Commission in case of intra-state trading. The Act requires the State Commission to frame regulation laying down the procedure, eligibility criteria etc. for grant of a trading licence. As trading in electricity was also a new concept, the Commission considered it appropriate to utilise the services of a Consultant for assisting in drafting the licensing regulations and for preparing a background note for this purpose. The Commission appointed M/s Power Finance Corporation, New Delhi, as consultant through the process of open tender on January 22, 2004.

The Consultants held discussions with the Commission and submitted their report along with draft regulations on February 27,2004. The Commission considered their report and the draft regulations and conveyed its observations to the consultants for revising them.

(d) Terms and conditions for determination of tariff

The Electricity Act, 2003 requires the Commission to frame regulations for laying down terms and conditions for determination of tariff for

(a) supply of electricity by a generating company to a distribution licensee.

(b) transmission of electricity

(d) retail sale of electricity

The Act further lays down that the Commission in framing its regulations shall be guided by the provisions of section 61 and 62 of the Act. Consequently, the Commission initiated the process of drafting the regulations for this purpose.

10. Grant of Licences

M/s Vijay Solvex Ltd., Alwar and Kalptaru Power Transmission Ltd., Mumbai had applied for a licence to sell electricity generated by them from non-conventional energy sources to HT industrial consumers. When the Electricity Act, 2003 came into force, the Commission asked the applicants to reconsider their applications for supply of electricity in the context of the provisions of the new Act. Both the applicants withdrew their applications, as under the provisions of Electricity Act 2003, there was no requirement for them, in the facts and circumstances of their case, to obtain a distribution licence. The Commission allowed them to withdraw their applications.

11. Redressal of consumer’s grievances

(A) Setting up of forum

Under the directions of the Commission given in the first tariff order dated 24.03.2001, the three Vitran Nigams had reviewed the existing mechanism of removal of consumer’s grievances and had issued revised guidelines. The Electricity Act 2003, however, required the distribution licensees to set up forum in accordance with the guidelines issued by the Commission, for redressal of consumer grievances. As mentioned in para 7 above, the Commission issued the Rajasthan Electricity Regulatory Commission (Guidelines for redressal of grievances) Regulations, 2003 providing for classification of complaints, setting up of forum at different levels, time frame for redressal of grievances etc. The three Vitran Nigams have set up forum in pursuance of the Commission’s guidelines as follows:

(a) Complaint centre

The distribution companies have identified the ‘Complaints Centers’ where complaints of consumers will be initially registered and have specified maximum time limit for redressal of each complaint/grievance, as prescribed by the Commission in the Standards of Performance. Initial responsibility of removing consumer grievances is that of this centre.

(b) District level forum

It has been provided that if the consumer is not satisfied with the redressal of his grievances by the complaint centre, he may approach the District Level Forum – set up by the Company in each District, which will work under the chairmanship of the Circle Superintending Engineer.

In case the consumer is not satisfied even with relief provided by the District Level Forum, he will be free to approach the next level Forum i.e. Corporate Level Forum, to be chaired by the Managing Director of the Company.

The two Forums will dispose of a complaint in a maximum period of 30 days and 45 days respectively.

These measures have been given extensive publicity for the benefit of the consumers.

(B) Ombudsman

The Electricity Act 2003 also provided for setting up of an Ombudsman. The consumer who was aggrieved by non-redressal of his grievance by the forum set up by the Vidyut Vitran Nigam could represent to the Ombudsman. The Act required the Commission to set up the Ombudsman and to lay down the time and manner in which the Ombudsman may settle the disputes. The Commission issued the Rajasthan Electricity Regulatory Commission (Settlement of disputes by Ombudsman) Regulations 2003 for this purpose on 20.11.2003.

12. Directions to the Vitran Nigams under the Licence

Under the terms of licences already granted to the Vitran Nigams under the RPSR Act 1999, the Nigams were required to furnish the following documents for approval of the Commission:

i) General Conditions of Supply

ii) Distribution Code

iii) Charter of Consumer Rights

13. Present status in respect of these is as under:

i) General Conditions of Supply

The 'General Condition of Supply & Scale of Miscellaneous Charges', received from Vitran Nigams was recast after considering objections/ suggestions received from all the stakeholders. The comments of Vitran Nigams on the same were received by the end of March 03. The Commission was about to issue final order in this regard, but, in the mean time, the Electricity Act, 2003 came into force on the 10^th June, 2003. In accordance with Section 50 of the said Act, the Commission had to specify, by regulation, an Electricity Supply Code to provide for various activities relating to general conditions of supply to the consumers. The Commission had already undertaken framing of a supply code as discussed in para 9 above. The general conditions of supply to consumers are to be revised in pursuance of the supply code that the Commission issues.

(ii) Distribution Code

Under the provisions of licence, the Vitran Nigams furnished the draft Distribution Code to the Commission for approval. A notice was published in leading newspapers on 5.01.03 seeking objections/ suggestions from all the stakeholders. The objections/ suggestions received were analysed in the light of replies received from Vitran Nigams and the date of hearing was fixed on 20.05.03. After hearing the objectors and Vitran Nigams, the Commission issued the orders on the 11^th June 2003.

(iii) Charter of consumers’ rights

In terms of clause 12 of the licence granted, every licensee is required to publish, with the approval of the Commission, a charter of consumers’ rights in respect of supply of safe, reliable and efficient electric energy to the consumers. The draft, received from the Vitran Nigams, was also discussed in the meeting of Commission Advisory Committee held on 25th October, 2002. After inviting objections/suggestions from the individuals/organisations, a public hearing was conducted on the 18th February 2003 at Jaipur. After hearing the objectors and Vitran Nigams, the Commission issued the orders on the 28th May 2003.

14. Directions to RVPN under the Licence

Under the term of license granted to RVPN under the RPSR Act 1999, the Nigam was required to furnish following documents for the approval of the Commission.

a) Standards of Performance

b) Grid Code

15. a) Standards of Performance

The Commission passed the order on dt. 24.3.02 for approval of Standards of Performance of RVPN. The Commission decided to frame RERC Regulations (Transmission licensee’s Standards of performance). Draft regulations were placed before the State Advisory Committee meeting held on 14.11.03. The Commission in its 63rd meeting held on 8.1.2004 approved the Regulations.

These Regulations shall serve as guidelines for transmission licencee to operate its State Transmission System for providing an efficient, reliable, coordinated and economical system of electricity supply and transmission. The performance standards have set the levels of operational security and quality of supply, which licencee is required to maintain in making power available for the purposes of supply to distribution licencees and supply to/ receipt from various generating stations, as laid down in the Transmission Licence. Performance Standards cover the aspects such as System Availability, Voltage Management, Frequency Management, Reliability, Harmonic Distortion, Safety, and Annual Review of Performance Standards etc.

b) Grid Code and Load Despatch & System Operation Code

In terms of the licence granted to Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN), it was required to submit to the Commission a draft of the Grid Code. The Commission received this draft from RVPN on 30.8.02. The Commission directed RVPN to publish a notice in leading newspapers of the State inviting comments/suggestions from all stakeholders. Objections were received from five persons. The objections were heard on 17.12.02 by a bench of the Commission comprising Members Shri Shanti Prasad and Shri P.K. Das. However, before the order could be pronounced, Shri P.K. Das expired. The matter was reheard by the Commission on 11.3.03 and order was made on 22.3.03. In pursuance of the Commission’s order, Grid Code has been published by RVPN on 6.6.03. RVPN, on the recommendation of State Power Committee, constituted under the grid code, proposed some amendments in the grid code which were also approved by Commission on 13.10.2003.

16. Directions to the Vitran Nigams under Tariff Order

The Commission had issued several directions in its tariff order dated 24^th March 2001 to ensure improvement in levels of performance and consumer satisfaction. To ensure strict compliance with these directives, the Commission called for quarterly progress reports, which have been analysed, and directions given. Present status in respect of some important activities is as follows:

(a) Reduction in transmission and distribution losses

In its first tariff order dated 24.3.2001 the Commission had directed the three Vidyut Vitran Nigams to reduce their T&D loss by 5.4% by the 31^st March, 2002.The Commission had also directed them to reduce their losses to the level of 20% in five years and for this purpose to prepare an action plan. However, the Vitran Nigams failed to put in required effort to bring down losses. On the other hand, the actual loss level in the year 2000-01 turned out to be higher than anticipated for all the three Vitran Nigams and instead of showing decrease, the losses increased in the subsequent years. At the end of 2003-04, the distribution losses of the three Vidyut Vitran Nigams are expected to be in the range of 38% to 45%. This continued high level of losses is totally unsustainable and forebodes financial collapse of the companies.

The Commission all these years have been laying great stress on reduction in T &D loss by the three Vidyut Vitran Nigams. The Commission has been setting annual targets as well as long term targets for loss reduction. The Vitran Nigams have, however, failed to reach anywhere near the targets fixed by the Commission.

The Commission had directed Vitran Nigams for carrying out a field study for determining loss levels for different consumer categories and assessment of consumption by flat rate agriculture consumers. Though the Vitran Nigams appointed consultants for carrying out the studies, no progress was made in the last three years.

(b) Metering Code

The Commission had directed the Vitran Nigams to improve the system of metering of energy supplied to consumers. For this purpose, drafts of Metering Code were received from the Vitran Nigams. Notice was published in leading newspapers in the month of October 02 seeking objections/ suggestions from all the stakeholders. The objections / suggestions received were analysed in the light of replies received from Vitran Nigams and the date of hearing was fixed on 12.05.03. After hearing the objectors and Vitran Nigams, the Commission issued the orders on the 6^th September 2003.

17. Petitions/Appeals before the Commission

(a) Petitions /Appeals pending at the beginning of the year.

The following petitions/appeals were pending at the beginning of the year 2003-04:

1. Appeal against order of Electrical Inspector filed by Executive Engineer(CD-II), JdVVNL, Jodhpur.

2. Petition filed by M/s.Kalpatru Power Transmission Ltd., Mumbai for grant of Licence for sale of power.

3. Petition filed by Shri P.N.Mandola, Secretary, Committee for Protection of Public Properties, Jaipur.

(b) Petitions/Appeals admitted

During the year, Commission has admitted following petitions/Appeals:

1. Petition filed by RVPN for determination of transmission tariff.

2. Petition filed by M/s.Laxmi Food Products, Udaipur for non compliance with order of the Commission by Ajmer Vidyut Vitran Nigam Ltd.

3. Appeal against order of Electrical Inspector filed by Executive Engineer(CD-II), AVVNL, Udaipur.

4. Appeal against order of Electrical Inspector filed by Executive Engineer(MT), AVVNL, Kankroli.

5. Appeal against order of Electrical Inspector filed by Sr.A.O.(Commercial), AVVNL, Ajmer.

6. Appeal against order of Electrical Inspector filed by Executive Engineer(O&M), AVVNL, Kankroli.

During the year 2003-04, the Commission has issued orders on the following petitions/appeals:

1. Appeal against order of Electrical Inspector filed by Executive Engineer(CD-II), JdVVNL, Jodhpur in the year 2002-03.

2. Petition filed by M/s.Kalpatru Power Transmission Ltd., Mumbai in the year 2002-03 for grant of Licence for sale of power.

3. Appeal against order of Electrical Inspector filed by Executive Engineer(CD-II), AVVNL, Udaipur.

4. Appeal against order of Electrical Inspector filed by Executive Engineer(MT), AVVNL, Kankroli.

5. Appeal against order of Electrical Inspector filed by Sr.A.O.(Commercial), AVVNL, Ajmer.

6. Appeal against order of Electrical Inspector filed by Executive Engineer(O&M), AVVNL, Kankroli.

(d) Petitions/Appeals pending:

At the end of the year, the following petitions were pending for decision:

1. Petition filed by RVPN for determination of transmission tariff.

2. Petition filed by M/s. Laxmi Food Products, Udaipur for non-compliance with the order of the Commission by Ajmer Vidyut Vitran Nigam Ltd.

3. Petition filed by Shri P.N.Mandola, Secretary, Committee for Protection of Public Properties, Jaipur. The hearing of this petition has been adjourned on the request of the petitioner because of an appeal filed by him in the Hon'ble High Court against decision of the Commission.

(e) In addition to above , following petitions have been decided

(i) Petition by M/S Aditya Cement for wheeling of power from its unit at Chittorgarh to their an other unit at Neemuch (M.P.)

A petition was filed by M/S Aditya Cement Ltd., Shambhupura, District Chittorgarh & M/S Vikram Cement, District Neemuch on 30.7.2003. Petitioners were the units of M/S Grasim Industries Ltd. They had a coal based captive power plant of 23 MW located at Shambhupura, District Chittorgarh in Rajasthan. They proposed to wheel power to the extent of 2 MW to 15 MW on continuous basis from the plant at Shambhupura, District Chittorgarh in Rajasthan to their unit M/S Vikram Cement, District Neemuch in M.P. Vide their petition, the petitioners requested the Commission under sub-section (5) of Section 64 of the Electricity Act 2003 to direct the Vitran Nigam to provide open access to the captive generating plant in District Chittorgarh for wheeling power from this unit to the other unit in District Neemuch (M.P.) and to fix-up the wheeling charges.

The Commission after hearing the applicant and RVPN allowed open access to the applicants on payment of transmission charges as may be determined by the Commission. The order was passed on 25.2.2004.

If at any stage of the operation of transmitting electricity from Rajasthan to M.P., any transmission system or distribution system of M.P. is used by the two units, then they will have to abide by the decision of the M.P.Electricity Regulatory Commission regarding such transmission of electricity in the territory of M.P.

This was the first instance of a captive plant operator using open access to transmit its electricity to the destination of its use.

(ii) Petition by M/S Marudhar Power Private Limited, Jodhpur for obtaining licence or exemption thereof:

The application of Marudhara Power Pvt. Ltd. , Jodhpur dated 6.6.2003for grant of supply license or an exemption from the licence under the provisions of Rajasthan Power Sector Reform Act, 1999, was under consideration of the Commission and was fixed for hearing. Before the matter could be heard the applicant filed another application dated 17.10.03 stating that after coming into force of the Electricity Act 2003, the application pending before the Commission under the provisions of the Rajasthan Power Sector Reform Act, 1999 had become infructuous. After obtaining comments of RVPN, the Commission dismissed the application-dated 6.6.03 as having become infructuous.

18. Writ petitions/Appeals against Commission’s orders

a) Bhartiya Kisan Sangh filed a writ petition (DBCWP 4340/2001) against State of Rajasthan and others against the tariff orders dt 24.3.01 issued by the Commission in the matter of tariff petitions filed by the three Vitran Nigams. The Commission was also made a respondent in this case. Hon. High Court by its order dated 21.8.03 dismissed the petition.

b) One civil writ petition (SBCWP 1740/2001) filed in High Court Bench at Jaipur by Shri B.L. Shishoo of Jaipur against the Tariff-Order dt 24.3.01 by the Commission is still pending. The date of hearing has not been fixed by the Hon. High Court, so far.

c) S.B. Civil Misc. Appeals have been filed in Hon’ble High Court, Jaipur by following against the Commission’s order dt 10.6.03 issued on the annual revenue requirement of Jaipur Vitran Nigam for FY 03 & 04 .

Shri Prakash Shukla v/s RERC SBCMA 1914/03

Shri P.N. Mandola v/s RERC SBCMA 1929/03

Smt. Pramila Sharma v/s RERC SBCMA 1915/03

Shri Arihant Kr. Jain v/s RERC SBCMA 1928/03

No date has been fixed for hearing the above appeals by the Hon’ble High Court

d) One civil writ petition (SBCWP 1500/2004) has also been filed in High Court at Jodhpur by Salasardham Vikas Samiti, Salasar against the advice given by the Commission to represent their case of change of consumer-category, when objections are invited on next tariff petitions filed by the Vitran Nigams. Case has not come up for hearing.

19. ARR and tariff filing

As per RERC (Tariff) Regulations, each transmission and distribution company is required to furnish to the Commission, annual statement of accounts in prescribed forms by 31^st October and expected Aggregate Revenue Requirement (ARR) for ensuing year. Transmission and distribution companies can also make a petition for revision of tariff ordinarily between 15^th and 31^st December.

(a) Annual Revenue Requirement of Vitran Nigams

All three Vitran Nigams have submitted the statements containing the revised annual revenue requirement (ARR) for the year 2003-04 and ARR for the year 2004-05 on 31.12.2003. The said statements contained data based on audited accounts for the year 2002-03, actual figures for a period of 8 months for the year 03-04 and projections for the remaining part of the year 03-04, and the projections for year 04-05. Salient features of the ARR were published in the newspapers inviting objections/ comments from public. The Commission also made a press release giving details of the revenue requirement for wide publicity and inviting objections/ comments. The Commission heard the objectors at Jaipur on 15.3.2004 and issued orders on 17^th April 2004. The Commission has expressed its serious concern over continued high level of distribution losses by the Vitran Nigams and heavy revenue gap.

(b) Tariff petition for the year FY 04-05 by RVPN

Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN) submitted on 31.12.2003 the revised annual revenue requirement (ARR) for the year 2003-04 and ARR for the year 2004-05 alongwith a petition for determination of tariff for transmission of electricity and state load despatch centre charges for the financial year 2004-05. The petition /statements contained data based on audited accounts for the year 2002-03, actual figures for a period of 8 months for the year 03-04 and projections for the remaining part of the year 03-04 and projections for the year 04-05. The salient features of the petition/ARR were published in the newspapers. The Commission had also made a press release giving details of the petition and revenue requirement for wide publicity and inviting objections. The Commission heard the objectors in a public hearing held on 16-3-04 and issued orders on 17^th April 2004.

20. Other Regulatory Functions

In discharging its duties and performing its functions, the Commission also took the following measures:

(a) Registration of public grievances in the Commission

The Commission has been receiving grievances of various nature from consumers for redressal. Such grievances are duly categorized and analysed before forwarding them to the concerned Vidyut Vitran Nigam for redressal. Depending on the nature of the issue involved, the Commission also issued necessary directions to the Vidyut Vitran Nigam for compliance. The gist of the action taken by the Commission in this regard is as follows:

Name of Nigam	Grievances Received during the year	Redressed & Closed during the year
JVVNL	69	44
AVVNL	89	52
JdVVNL	51	31

Action being taken by the Vidyut Vitran Nigam on the remaining complaints is being monitored by the Commission.

The Commission has also received 42 representations about incorrect interpretation by Vitran Nigams of Tariff orders issued by the Commission. These representations were examined and necessary clarification given.

(b) The Commission’s views / comments on State Govt’s policies

Directive for promotion of generation from Non-Conventional Energy Sources

The State Government issued policy for promotion of electricity generation from wind 2003 vide notification dt. 30.4.03 and directed the Commission for compliance with the policy. As the policy of the state Government covered various aspects outside the purview of the Commission, the Commission advised the State Government that the implementation of the policy should be the responsibility of the nodal agency. The State Government may issue a policy directive, if that was considered necessary, to the Commission on a specific issue covered by the policy.

The Commission also requested the Government to review the policies for promotion of electricity generation from non conventional energy sources in the context of the provisions of the Electricity Act 2003 . Clarification from State Government has been received on various points mentioned by the Commission .

Jaipur Vidyut Vitran Nigam made a proposal on behalf of all the three Vidyut Vitran Nigams for providing incentive to large industrial consumers for increasing consumption of electricity. Broadly, the proposal was to allow a rebate of 10% - 15% to such large industrial consumers as increased consumption of electricity by more than 2.5% over the previous year's level. The Commission examined the proposals with a view to ascertaining whether proposed incentive would not lead to purchase of incremental electricity at a cost higher than that of the incentive proposed. After examining the proposal, the Commission conveyed approval for the scheme for the year 2003-04.

Subsequently a proposal to modify the existing scheme to cover new industries and reconnected consumers as well as for extending the scheme for three years was received. The Commission examined the scheme and conveyed its approval for extending the scheme till 31.3.2007 or till revision of tariff, whichever was earlier.

(d) Power Purchase Agreements

During FY 2003-04 Commission received 48 PPAs executed with NES power producers with RVPN. Wherever considered necessary, the Commission conveyed its observations on them to RVPN.

It also received 13 numbers of PPAs & Bulk Supply Agreements as under

1. PPA for Koldam HEP (NTPC)

2. PPA for Nathpa Jhakri HEP (SJVNL)

3. PPA for Kahalgaon TPP (NTPC)

4. PPA for Barh TPP (NTPC)

5. PPA for North Karanpura TPP (NTPC)

6. PPA for Parbati-II (NHPC)

7. PPA for Parbati-III (NHPC)

8. PPA for Dhauliganga-I (NHPC)

9. PPA for Sewa-II (NHPC)

10. PPA for Uri-II (NHPC)

11. PPA for Pakaldul (NHPC)

12. PPA for Chamera-II (NHPC)

13. PPA for BPSA for operating Projects i.e. Tanakpur, Chamera-I, Salal & Uri-I HEPs (NHPC).

Observations of the Commission have been conveyed to RVPN

(e) Comments on CERC & GOI documents

(i) Discussion paper on Terms & Conditions of Tariff

CERC vide No. C-7/ 25 (1)/ 203 dt. 12.6.03 circulated discussion paper on terms & conditions of tariff determination for inter state generation and transmission. These will form guidelines for specifying terms and conditions, principles and methodology of tariff determination by the State Commission in respect of generating companies and transmission licensees. Comments of the Commission were sent on 21.8.03.

(ii) Government of India’s preliminary discussion paper on tariff

policy

Government of India’s preliminary discussion paper on tariff policy was down loaded from website and studied by the Commission. Comments of the Commission were sent to Secretary, Ministry of Power, Government of India vide letter dt. 29.8.03.

(iii) CERC’s concept paper on open access in inter state transmission

CERC’s concept paper on open access in interstate transmission, circulated vide no. Secy/ conf paper/ 03 dt. 14.8.03, was studied by the Commission & comments were conveyed vide letter dt. 30.9.03.

(iv) CERC concept paper on Inter State Trading

The concept paper on eligibility conditions received from CERC vide letter dt. 8.10.03 was examined and comments of the Commission were sent to CERC on 4.12.03.

21. Constitution of the State Advisory Committee:

In pursuance to the Electricity Act, 2003, the Commission, on 25^th July 03, constituted the State Advisory Committee comprising 21 members, representing Members of the Legislative Assembly representing general consumers, State Government, Vitran Nigams, Prasaran Nigam, Utpadan Nigam, NGOs, Railways, Commerce & Industry, Labour sector and Agriculture sector.

The Committee in its first meeting under the Chairmanship of the Chairman of the Commission, held on 14^th November 03, approved the RERC (Transmission & Bulk Supply Licensee’s Standard of Performance) Regulations, 2003 and deliberated on several contemporary issues like the Electricity Bill 2003, Vitran Nigams’ performance in T & D loss reduction, speedy release of agriculture connections to curb power theft, opening of more cash collection centres, APDRP funding, ABT tariff implementation, formulation of multi-year tariff and energy audit etc.

22. Safety Code

As per the RPSR Act 1999, the Commission has to frame & enforce safety standards. RVPN and three Vitran Nigams were requested to furnish draft safety standards. The Commission decided to obtain comments/ objections of consumers and others, through a notice published in newspapers in April 03. The Commission heard the objectors and utilities on 3.7.03 and order was passed on 7.8.03. A common safety standards has been issued for all the utilities including generation, transmission and distribution utilities.

23. Analysis of Standards of Performance of the Nigam:

The Commission has been analysing various data relating to the observance of Standards of Performance, as sent by the Vitran Nigams on quarterly basis. The Commission is also conveying its observations to the Vidyut Vitran Nigams.

24. Forms for furnishing Annual Revenue Requirement & Tariff

The Commission revised the forms for furnishing annual accounts and tariff proposals by generating companies vide letter dated 21.2.04.

25. Information to be submitted by Generating companies

Under the provisions of Electricity Act, 2003 a generating company though not subject to any regulation by the Commission, is required to submit information to the Commission as may be required by it. Consequently forms for log books and furnishing quarterly details of generation by persons who own, operate or maintain a generating station of 125 kW or more were notified by the Commission.

26. Meetings of the Commission

The Commission held 11 meetings of the Commission in addition to several informal sittings for performing its functions

27. World Forum on Energy Regulation, Rome

The World forum on Energy Regulation meets once in every three years. The 2^nd World Forum met at Rome from October 5 to October 9, 2003. Shri Arun Kumar, Chairman was invited to participate in the deliberations of the Forum by the World Bank who was one of the co organiser of the Forum.

The forum was attended by 80 energy regulatory bodies representing 90 countries of the world. It provided a great opportunity to know how some of the common regulatory issues have been handled in developed and developing countries with different socio-political and economic backgrounds.

28. Forum of Indian Regulators

The Commission is a member of the Forum of Indian Regulators (FOIR) of which the Central Electricity Regulatory Commission and all State Electricity Regulatory Commissions are members. This forum meets periodically and provides an occasion for all Regulatory Commissions to exchange views on regulatory issues. Chairman and members of the Commission have been regularly participating in the meetings of the Forum.

29. Staff of the Commission

The sanctioned strength of the Commission is 31, comprising of one Secretary, one Joint Secretary (Tariff), four Dy. Secretaries, one Asstt. Secretary, 14 Accountant/Executive Assistants/Stenos, 2 Drivers and 8 Class-IV employees. Present working strength is 28.

30. Library of the Commission

The Commission maintains a library where various books, periodicals as well as all orders of the Commission and other important documents are available. The library is very useful not only for the staff of the Commission but also for general public who can obtain the copies of Commission’s documents by paying prescribed fee.

31. Human Resource Development

The Commission is fully aware of the present need for Human Resource Development particularly on regulatory matters which is a new field. All the four Dy. Secretaries presently working in the Commission have been deputed from time to time for attending training programmes, seminars, conferences etc. within the country. In all, officers of the Commission participated in 27 seminars/workshops.

32. Commission's endeavours towards Consumers Education

The Commission also participated in consumers education programmes organized by an NGO, Consumers Unity and Trust Society. The programme was held at Jalore in Sept. 03, wherein a representative of the Commission was deputed to participate and attend to the consumers' queries.

33. Budget of the Commission

For the year 2003-04, there was a budget provisions of Rs. 100.02 Lac. The actual expenditure was Rs. 90.40 Lac. The Commission has also received a sum of Rs. 2.52 lacs during the year 2003-04 towards fees and other misc. charges. Rent for office accommodation of the Commission has not yet been finalised by RVPN and this liability will be discharged when rent is finalised.

34. Commission’s Website

The Commission has its website developed & maintained by the Rajcomp. The site is regularly reviewed & updated by the Commission.