Rajasthan Electricity Regulatory Commission
Jaipur
In the matter of Petition for
Transmission and SLDC tariff
Filed by
Rajasthan Rajya Vidyut Prasaran Nigam Ltd.
Mr.Arun Kumar, Chairman
Mr.Shanti Prasad, Member
Mr.S.M.Dharendra, Member
Date of hearing 16-03-2004
Present: On behalf of Rajasthan Rajya Vidyut Prasaran Nigam
Ltd.
1. Shri K.L. Vyas, Director (P&R)
2. Shri R.K. Agrawal, Director (F&CA)
O R D E R
1. Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN) has submitted on 31.12.2003 the revised annual revenue requirement (ARR) for the year 2003-04 and ARR for the year 2004-05 as required under the RERC (Tariff) Regulations, 2000 alongwith a petition for determination of tariff for transmission of electricity and state load despatch center 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.
2. The petition/statements were placed before the Commission in its 63rd meeting held on 8.1.2004. The Commission admitted the petition and decided that the salient features of the petition/ARR may be published in newspapers for inviting objections/comments from general public by 7.2.2004.
3. Accordingly, the notices were published in the following news papers on the dates mentioned against each:
(i) Rastradoot 15.1.2004
(ii) Dainik Navjyoti 14.1.2004
(iii) Hindustan Times 15.1.2004
4. The Commission had also made a press release giving details of the petition and revenue requirement for wide publicity and inviting objections. Objections were received from the following persons:
(i) Dr. K.L. Jain, Rajasthan Chamber of Commerce & Industry, Jaipur.
(ii) Mr. Surendra Lodha, Ajmer Zila Laghu Udyog Sangh, Ajmer.
5. The Commission forwarded the objections to RVPN for sending the reply to the objectors. The Commission held hearing on 16-3-04 and heard Shri D.S. Agrawal and Shri Surendra Lodha on behalf of the objectors.
6. The tariff petition and ARR for both the years 2003-04 and 2004-05 are to be considered by the Commission in this order. As the year 03-04 has come to a close, ARR for FY03-04 is not dealtwith in detail. In passing this order the Commission has considered the objections filed by Rajasthan Chamber of Commerce and Industry, Jaipur and Ajmer Zila Laghu Udyog Sangh, Ajmer and arguments put forth in the hearing.
7. RVPN has stated that under the provisions of the Electricity Act 2003 a State Transmission Utility and the State Load Despatch Centre (SLDC) cannot continue with the business of trading of electricity beyond June 9, 2004. The State Government and RVPN have decided that w.e.f. 1.4.04, trading functions shall be directly conducted by the three Vitran Nigams and RVPN shall be responsible for the establishment, operation and maintenance of transmission net work and SLDC. RVPN has petitioned for levy of the following w.e.f. 1.4.04.
(i) Transmission charges of 18.39 paisa/KWh of energy injected into RVPN's system with transmission losses of 4.76 %.
(ii) Regulatory assets recovery tariff of 6.93 paisa / KWh of energy injected into RVPN's system to effect recovery of regulatory assets of Rs.180.41 crores on account of anticipated revenue deficit for the FY03-04.
(iii) SLDC expenses of Rs.1682 lakhs distributed equally among all three Vitran Nigams and to be recovered from them as fixed monthly charge of Rs.46.73 lakhs each. Revenue realised as per SLDC charges of Rs.3000 per day plus Rs.2000 per schedule revision as per CERC's order dated 14.10.03 for interstate transmission will be adjusted from such monthly charges to be recovered from Vitran Nigams.
8. RVPN has stated that the partnership projects (of BBMB, Chambal and Satpura) which as per Rajasthan Power Sector Reforms (Transfer Scheme) 2000 were operated and maintained by RVPN, shall continue to be with RVPN and RVPN shall effect sale of electricity from these projects. RVPN has segregated its expenses in respect of generation projects, SLDC and transmission. RVPN has proposed recovery of generation expenses net of revenue from outside the state sale from these projects from three Vitran Nigams.
9. Accordingly RVPN has filed revised ARR for FY03-04 with trading activity (i.e. power purchases from RVUN and central sector's power stations, bilateral and interregional purchases etc and sale at Bulk supply tariff of 213 paisa/KWh) and ARR for FY 04-05 without trading activity.
Consideration of objections
(1) Transmission losses:
10. Shri D.S. Agarwal Honorary advisor to Rajasthan Chamber of Commerce & Industry (RCCI) submitted that transmission tariff will indirectly impact on the retail tariff. He drew attention of the Commission towards higher transmission losses of 4.76% within the State projected for the year 2004-05 as against 4.60% for the year 2003-04. Shri Surendra Lodha of Ajmer Zila Laghu Udyog Sangh (AZLUS) also stated that within the State Losses have been increasing, they were 4.31% in 2002-03, 4.60% in 2003-04 and now projected at 4.76% for 2004-05 and that there is no reason for such increase as transmission losses of northern region remains static at 4.25%. Shri Agarwal stated that with number of 400 KV& 220 KV Sub-stations and transmission lines added during past years, transmission losses within the State should come down and that with increase in generation within the State, proportion of out side the State losses will also get reduced and overall losses should also come down rather than remain static at 6.15%. Shri K.L. Vyas of RVPN clarified that slight increase in within State losses is due to increased generation within the State while the outside State losses have been assumed to be constant at 4.25%. He also stated that extension of EHV system will result in increased losses of RVPN by 0.16%, while it would effect reduction of losses in Vitran Nigams’ system. In totality, it results in reduction in T&D losses.
11. The Commission has considered these submissions and it is observed that RVPN has indicated transmission losses as under:
| 2003-04 |
2004-05 |
|
| Outside the State |
4.25% |
4.25% |
| Within the State |
4.60% |
4.76% |
12. In general, lines losses will increase, if expansion of EHV system is not kept in pace with growth of load. Annual plan for RVPN’s transmission system has been of Rs.335 crores for 2003-04 and Rs.350 crores for 2004-05, which is 12.97% and 12.01% of gross fixed assets (GFA) at the end of previous year. Compared to this, sale to Vitran Nigams has been projected to grow by 1.2% and 1.7% respectively in the two years, indicating that investment has been in pace with growth of load. Further, EHV system can be expanded by laying radial lines for new sub-stations or for power evacuation and can also be strengthened by higher voltage EHV lines overlaid on lower voltage EHV lines, drawing parallel EHV lines or closing the loops. While argument of RVPN holds good for system expansion, it is not so for power evacuation and system strengthening, where it may result in reduction of line losses. It will, therefore, be more appropriate to assess the line losses based on load flow studies.
13. RVPN has supplied load flow studies corresponding to 2003-04 and 2004-05 conditions. Accordingly, peak load considered and peak losses are as under:
| 2003-04 |
2004-05 |
|
| Total load |
4097.00 MW |
4534.2 MW |
| Losses |
205.0220 MW |
204.864 MW |
| % Losses (at peak load) |
5.00 % |
4.52% |
14. Actual energy losses in % will be less than that as per studies due to load variations, i.e. load factor of the load. However, it is evident from load flow studies that transmission losses for 04-05 will be less than that of 03-04 and as such RVPN’s assumption of higher losses is not acceptable. The Commission, therefore, fixes EHV line losses of 4.6% for the year 2004-05 for transmission within the state, except for Non conventional energy sources (NES) power plants where it will be governed by the State Government’s policy.
(2) Sale of Power:
15. Shri D.S. Agrawal stated that as per ARR, 394 MU have been indicated as unscheduled interchange (sale or under drawal) at Rs.4583 lakhs i.e. Rs.1.16 per KWh. However, in northern region power is available at a rate cheaper than Rs.2/-. He expressed that instead of UI (underdrawal), it could have been sold to other needy state at higher tariff. He also stated that it is learnt that RVPN has purchased power by operation of NTPCs gas based station on oil at about Rs.5/- per KWh and instead, could have effected generation at Ramgarh GTPS which would have improved the PLF and caused lesser losses. He pointed out that against PLF of 83 % envisaged for FY-03-04, PLF of Kota and Suratgarh TPS of RVPN has considered generation at 80% PLF probably on account of lesser generation required during lean periods. He expressed that though the petition envisages purchase of power by Rajasthan Power Purchase Center w.e.f. 1.4.04, it does not indicate who will effect sale of power during lean demand in Rajasthan (during monsoon months) when RVUN's Thermal Stations can, instead of backing down, effect sale to other States. Shri K.L.Vyas of RVPN stated that RVPN cannot and will not effect sale of power. This aspect or surrender of entitlement in generating stations is to be decided by Rajasthan Vidyut Utpadan Nigam (RVUN) or Vitran Nigams. The Commission finds force in Shri Agarwal’s argument. UI of 394 MUs represents about 1.5% of power availability, SLDC should endeavour to bring it down to 1% during 04-05 separately for both during under frequency and during over frequency conditions. Sale by RVUN to others has been considered later in this order.
16. Shri Surrender Lodha expressed that as per schedule to balance sheet, sale of power effected to M.P. during 2002-03 has been higher by about Rs.60 crores, while outstandings against them during the same year has grown by the same amount. When outstanding is growing no sale should have been effected to them. Shri K.L.Vyas, Director, RVPN clarified that sale to M.P. is not effected physically, but is notional/book adjustment in respect of Rajasthan's share of energy in Chambal, Satpura partnership projects which are situated in M.P. and operated by M.P.
(3) Purchase of power:
17. Shri D.S. Agrawal of RCCI stated that power purchase from RAPP Unit-1 has been shown nil during the year 2003-04, whereas this unit is likely to provide generation during February and March, 2004. He also pointed out that average rate of power purchase from RVUN during FY-03-04 has been revised to 216.26 paisa per unit. The increase is not justified since more power from hydro station at cheaper rate has been available during the year. He also made a suggestion that rate of power purchase from RAPP Unit-3 & 4 indicated as 326.11 paise per KWh and 331.42 paise per KWh respectively should be re-negotiated; otherwise efforts should be made to purchase power from other power trading companies, who may deliver such power below Rs.3/- per unit. It was also pointed out that power generation from Gandhi Sagar has been shown to be only 27 MU, whereas reservoir level is higher. RVPN clarified that the estimated generation taken for financial year-04 is 172MU for Chambal and 202 MU for Mahi (I & II). RVPN clarified that any deviation from power purchase shown in the petition shall be accounted for in the year-end accounting. The Commission directs Rajasthan Power Purchase Centre having representatives of the Vitran Nigams to take note of the suggestions of Shri D.S. Agarwal.
18. Shri D.S. Agrawal expressed that auxiliary consumption of 9.5% for RVUN's coal based thermal station operating at very high load factor is high and suggested to carry out energy audit to have it reduced to a lower level of say 8%. The Commission will consider this suggestion while determining RVUN's tariff.
(4) Accounting Methods
19. Shri Surendra Lodha (AZLUS) expressed that as per auditors report, provisions of Electricity (Supply) Act,1948 have prevailed, wherever provisions of the Companies Act are inconsistent with it. From this, it is not clear whether RVPN’s accounts have been drawn as per Companies Act or Electricity (Supply) Act, 1948 or Electricity Act,2003. He argued that RVPN being a Company should be governed by Companies Act or accounting standards issued by the institute of Chartered Accountants of India. He further argued that assets register has not been prepared and as such, it cannot be ascertained that provision made for the depreciation is proper. Shri K.L.Vyas, Director RVPN stated that circle wise assets registers have been prepared. Shri R.K. Agrawal, Director RVPN mentioned that the accounting system being followed by RSEB is being changed to conform to the provisions of company law and some ambiguity is due to transition and will be removed in course of time. He stated that assets register as per Companies Act were not prepared in erstwhile RSEB and RVPN has prepared fixed assets register upto 02-03 and depreciation will be accordingly provided for FY 03-04 in audited accounts.
(5) Other Expenses:
20. Advisor of RCCI pointed out that administrative and general expenses for the year 2004-05 are proposed to be increased by 9.56% which is on higher side. Shri Surendra Lodha of AZLUS pointed out that R&M expenses which were Rs.1168 lakhs in the year 01-02 have increased considerably. He expressed concern over increase in additional contribution to pension & gratuity and required it to be based on actuals. He also expressed that the interest and finance charges for the FY-04 and FY-05 were very high and these should be reduced. Shri Surendra Lodha also stated that as per annexure to auditor’s report, a sum of Rs.37.87 crores have not been remitted to GPF Trust.
21. Shri R.K. Agrawal explained that though number of employees have been reduced, establishment cost is increasing due to increase in pay on account of increments/promotions etc. and other allowances, mainly dearness allowance. R&M expenses have to be need based and can not exactly be as per norms. Shri R.K. Agrawal also stated that RVPN has been making efforts for swapping high interest loans with loans with lower interest rates. During the year 2003-04, there has been swapping of loans availed at higher interest rates, resulting in saving of Rs.45 to 50 crores. On account of this, interest and finance charges are practically static. Interest and finance charges are anticipated to be Rs.208 crores for the financial year 03-04 as against Rs.202 crores envisaged by Commission in ARR of 03-04 and shall be Rs.206 crores for the financial year 04-05. Regarding contribution to pension & gratuity funds, Shri R.K. Agrawal, Director RVPN stated that contribution to the trust has been towards unfunded liability as on 20.7.2000 and has been in addition to current contribution based on actuals at the rate of 16.17 % of pay per annum. Corpus for unfunded liability is being created based on sale of energy to Vitran Nigams and RVPN proposes to continue this funding mechanism for the year 2004-05 also. He stated that contribution has been remitted to the trusts and that this unfunded liability has been considered as Rs.1769 crores in the revised transfer scheme. 3 years have already elapsed and there is need to have review of actuarial valuation. In respect of current contribution, he stated that net pending liabilities to GPF Trust, as pointed in audit report, is being released in instalments.
(6) Regulatory assets:
22. Representatives of both RCCI and AZLUS pointed out that the deficit of Rs.180.41 crores proposed to be passed on to the Vitran Nigams will ultimately be passed on to the consumers and, therefore, should not be accepted and it need to be borne by the State Government. Shri Sundrendra Lodha also expressed that deficit is not on account of power purchase cost as projected, as on account of the same, it would have been only Rs. 57 crores. RVPN stated that due to extra drawal by Vitran Nigams, it had to effect extra power purchases and increase in the cost of power purchases effected by it over bulk supply tariff of 213 paisa/KWh, need be considered as regulatory assets. In case the State Govt. provides subsidy, then the same will be adjusted against the proposed regulatory assets.
23. Shri Surendra lodha further stated that the proposed transmission charges of 18.39 paisa/ Kwh for financial year 04-05 is high and excluding the power purchase cost, and revenue from sale, it indicates 34% increase over those of FY 00-01. This heavy increase may be due to burden of interest charges on borrowings to meet deficit reflected in the balance sheet for 02-03, wherein working capital loans have been about Rs.574 crores as on 31.3.03, while outstanding of RVPN has been Rs.1770 crores. He expressed that subsidy etc. including interest liability of such funding should be provided by the State Government. Shri R.K. Agrawal stated that RVPN's outstandings are increasing and it will take time by the entire sector to have a turn around. The State Government has not provided subsidy in full.
Transmission charges:
24. Transmission charges proposed by RVPN are based on;-
(i) Transmission expenses of Rs.51222 lakhs have been worked out after netting off revenue from non-tariff income of Rs.3354 lakh. Transmission expenses include contribution to pension and gratuity fund @3.57 p/KWh on energy injected into RVPN’s system.
(ii) RVPN has estimated 26024 MU of energy injection into RVPN system. This energy injection has been worked out on the estimated 24783 MU to be transmitted to Vitran Nigams during the year 04-05 and within the State Transmission losses of 4.76%.
25. The Transmission charges have been proposed by RVPN as energy charges. In the bulk supply tariff order of 24.03.01, the Commission had expressed its preference for two part tariff i.e. the recovery of fixed charges in the form of demand/fixed charges based on integrated demand and connectivity fee and recovery of variable charges as energy charges and KVArh charges. However, due to requisite metering system, hardware and software not being in position, it had specified BST for supply of electricity by RVPN to Vitran Nigams as energy charge of 213 p/KWh. BST so fixed included power purchase cost, which has fixed as well as variable charges. Out of these, transmission expenses are of the nature of fixed expenses only. In line with the said policy, transmission tariff need be determined on the basis of demand charges and connectivity fee. KVArh charges will be part of Vitran Nigam’s tariff. It is observed that CERC’s order dated 30.01.04 on open access to interstate transmission and regulations made for open access, interalia specify that:-
(i) Long-term open access customer shall share the annual transmission charges after adjustment of revenue from short-term customers, in accordance with the terms and conditions of tariff notified by the CERC from time to time.
(ii) The charges payable by a short-term open access customer shall be ¼th of the charges applicable to the long-term customers. It shall be calculated in accordance with the following methodology:-
-ST-rate=0.25 (TSC/AV-Cap) 365
where:-
-ST rate is the rate for short-term customers in Rs. as
per MW per day.
-TSC means Annual transmission charges of the transmission licensee for the previous financial year allowed by the appropriate Commission.
-AV-cap means the average capacity served by transmission system of the transmission licensee in the previous financial year & shall be the sum of the generation capacities connected to the transmission system & contracted capacities of other transaction handled by the system of the transmission licensee.
(iii) In absence of availability of TSC, per MW per day, charges applicable to system owned by CTU of the region shall be applicable.
26. Terms & Conditions of transmission tariff notified by the CERC, specifies that after the introduction of ABT sharing of fixed charges of transmission by beneficiaries shall be on the basis of capacity allocation from Central Sector Generating Stations or as per the transmission agreements, if any. Thus, CERC (Open Access in Inter State Transmission) Regulation 2004 also specifies recovery of transmission charges (as determined by them) based on contracted capacity per MW per day of short-term customers & sharing of balance expenses among long-term customers in proportion to contracted capacity. That is to say, transmission charges are linked to capacity allowed and not on energy drawal.
27. Thus, transmission tariff for the existing licensees can be energy based (as petitioned by RVPN) or can be capacity based as per CERC (Open Access in Inter State Transmission) Regulations 2004 for short-term customer or can be shared among Vitran Nigams in the ratio of generation capacity allocated (as per CERC’s said regulation for long-term customers). The State Government vide notification No.F.15(4)/Energy2003 dated 28.02.04 has assigned the generation capacity in central sector partnership projects & RVUN’s power stations in the proportion of 36:36:28 to Jaipur, Ajmer and Jodhpur Vitran Nigams respectively. If so, the last alternative of transmission tariff will lead to sharing of transmission charges in the ratio of 36:36:28. However, the State Power System and Central Sector Power System are not similar to each other in respect of billing. In respect of drawal from Central Sector Generating Stations (CSGS), fixed charges are billed as per capacity allocations (with adjustment of bilateral agreements), energy charges as per schedules and actual drawals deviating from schedule (which has to take into account generation capacity availability and allocation), is subject to ABT. Adjustment of underdrawal/overdrawal at ABT is deemed to cover transmission and other charges for such over drawals. ABT has not so far been introduced in the State on account of policy of operating the RVUN’s generating stations on no profit no loss basis. The sharing of generation expenses & transmission charges in the fixed ratio will not be conducive to efficient power procurement as the Vitran Nigam, which will exercise restraint on its demand and energy drawal, will not get any benefit. The Commission after consideration of these aspects has come to the conclusion that transmission tariff shall be capacity based. It shall be shared among the existing Jaipur, Jodhpur & Ajmer VVNs in proportion to RVPN’s transmission capacity contracted/allocated to be utilized at point of injection to RVPN’s system, based on generation capacity contracted/ allocated and inter Vitran Nigam deemed exchanges of capacity.
Transmission Expenses
28. Based on the Commission’s record expenses properly chargeable to transmission tariff are determined by the Commission as under:-
(a) Repairs & Maintenance (R&M Expenses)
RVPN has indicated R&M expenses as Rs.4885 lakhs, Rs.5374 lakhs & Rs.5912 lakhs for the year 2002-03,2003-04 & 2004-05 respectively. It is observed that actual R&M expenses for 2002-03 and anticipated expenses of Rs.5374 lakhs for 2003-04 are much less than the revised figure of Rs.6269 lakhs & Rs.6571 lakhs indicated in ARR for the FY2003-04 and accepted by the Commission. Increase in R&M expenses for 02-03 vis-à-vis 01-02 is only 3.41%. R&M expenses as per ARR for 04-05, works out as 2.09%, 2.08% & 2.03% on GFA at the beginning of the year and indicate decreasing trend. However, the Commission feels that 10% annual increase over audited figure of 02-03 is significantly high. It considers annual rise of 3.5% for 2003-04 & 7.0% for the year 2004-05 as reasonable. Accordingly R&M expenses considered are Rs.5056 & Rs.5410 lakhs respectively for the year 2003-04 & 2004-05.
(b) Establishment Cost
Even for establishment cost, the actual cost for Financial Year 2002-03, (i.e. Rs.8887) lakhs & that anticipated for FY 2003-04 (i.e. Rs.9688) has been less than the revised figures of Rs.9492 lakhs & Rs.10678 lakhs intimated by RVPN in ARR of 2003-04 and accepted by the Commission. Growth rate 2001-02 & 2002-03 is negative. The Commission considers annual rate of increase as that of R&M expenses as reasonable. The establishment costs will accordingly be Rs.9198 lakhs & Rs.9842 lakhs respectively. Higher rate of increase is considered for FY04-05 in consideration to new recruitments being effected by RVPN in 2004-05 and increase in allowance consequent to conversion of 50% DA as D.P.
(c) A&G Expenses:
Though figures of A&G expenses for year 2002-03 & 2003-04 are also less than those as per ARR for the year 2003-04, however, it has been shown to have increase of about 8% vis-à-vis year 2001-02. Figurers for years 2003-04 & 2004-05 have slight increase. The same appears reasonable & is, therefore, accepted. A&G expenses for the year 2003-04 will be 894 lakhs & Rs.983 lakhs for the year FY 2004-05.
(d) Depreciation Charges:
The Commission in the tariff order dated 24.03.2001 has directed RVPN to complete asset register giving details of the assets, duty reconciled with figures of the statement of accounts. The same has been completed upto 2002-03 and stated to be under the approval of Board of Directors. RVPN has not provided gross fixed assets (GFA) and additions thereto, categorized as per different rates of depreciations and has given range of depreciation rates for few categories, like transmission lines, plant & machinery, hydraulic works etc.. It has allowed depreciation at an average rate of 5.16%. The Commission reiterates its directive for bringing asset register to date. It is also observed that RVPN has not accounted for the cost of assets depreciated upto 90%. As per details furnished to the Commission, assets created upto 85-86 (i.e. of Rs .5230 lakhs) have been depreciated upto 90% and no further depreciation is to be allowed on them. As such the Commission considers it appropriate to allow depreciation on GFA of Rs.286008 (i.e.Rs.291238 less Rs.5230 lakh). The Commission allows for 2004-05, the depreciation @ 5.16% on depreciable GFA of Rs. 286008 lakhs. Depreciation charges shall be Rs. 14758 lakhs (for 2004-05) and the same for 2003-04 will be Rs.13326 lakhs for 2003-2004 (as claimed by RVPN). In view of low failure rate of transmission lines & EHV transformers and most of EHV transformers having got repaired, no adjustment has been considered necessary by the Commission towards unserviceable assets.
(e) Interest & Finance charges
Interest & finance charges claimed by RVPN is RS. 20,558 lakhs and Rs. 19,766 lakhs for the Financial Year 2003-04 &FY 2004-05 respectively. The outstanding level of working capital at the close of the year 2004-05 has been projected at Rs. 59794 lakhs. Assuming the norms of O&M expenses for one month, maintenance spares equivalent to 1% of the capital cost of plant & machinery and receivable for two months, notional level of working capital is assessed at Rs. 15321 lakhs. As RVPN cannot realise receivables from Vitran Nigams overnight due to their cumulative deficits, it should be gradually reduced. However, RVPN has not claimed any interest on working capital and it is proposed to pass on actual interest liability of short-term borrowings to Vitran Nigams, which will be much less than late payment surcharge.
While approving the ARR for the year 2003-04, the Commission had directed/advised to RVPN to capitalise interest on borrowed funds during the construction period of projects as per the Accounting Standard 16 of Institute of Chartered Accountant of India. It is, therefore, reiterated that while finalizing accounts of the year 2003-04 and onwards RVPN must capitalise interest as per the accounting standard 16.
As generation cost of partnership projects of RVPN will be passed on to Vitran Nigams without any loss or profit, segregating it from transmission cost for the year 2004-05 and onwards would be necessary. It is directed that RVPN should also allocate fixed cost, such as repair & maintenance, administrative & general expenses, depreciation and interest and finance charges to generation cost and reflect in schedule no. 19- generation of power-to balance sheet.
(f) Other expenses
These expenses as indicated by the RVPN, are Rs.299 lakhs & Rs.463 lakhs for 2003-04 and 2004-05 respectively. These are towards restructuring premium and project preparatory fund. Loan restructuring premium has been paid to effect swapping of loans, which has resulted in reduction of interest charges. These charges are, therefore, considered inevitable and allowed.
(g) Lease Rental
This is based on actual schedule of payment and as such figures of Rs.155 lakhs & Rs. 2 lakhs for the year 2003-04 & 2004-05 is accepted.
(h) Contribution to Pension & Gratuity Fund
RVPN has considered provision of Rs.9290 lakhs for this item. It is stated that Commission in its tariff order dated 24.03.01 in respect of Bulk Supply tariff, has considered contributions @ 3.57p/kwh on sales to Vitran Nigams towards actuarial liability of pension & gratuity at the time of unbundling. Against actuarial liability of Rs. 1759 crores assessed in amended transfer scheme, the built up in these funds has been as under (in lakhs of Rs.)
| Year |
Superannuating fund |
Gratuity fund |
Total |
| At the end of FY 99-2000 |
14367 |
- |
14367 |
| FY 2000-01 |
26478 |
(-) 730 |
25748 |
| FY 2001-02 |
33116 |
488 |
33604 |
| FY 2002-03 |
39754 |
2311 |
42065 |
| Contribution Year 2003-04 (upto Nov.) |
4141 |
1438 |
5579 |
As per sub-rule 8 of rule 6 of amended transfer scheme, RVPN is liable to fund unfunded liability for pension and gratuity as on 20-7-00. As such, the above contribution has been considered as part of transmission tariff.
(i) Apportionment of above transmission expenses: The above transmission expenses have been apportioned to transmission, partnership projects and SLDC activities handled by RVPN for 2004-05 as under:
| Apportionment of RVPN's expenses for 2004-05 |
|||||
| Sr. |
Particulars |
Revenue expenditure (Considered by Commission) |
|||
| No. |
Total for |
Apportionment to |
|||
| RVPN |
partnership |
Transmission |
SLDC |
||
| generation |
|||||
| projects' |
|||||
| 1 |
Fuel costs |
8820 |
8820 |
0 |
0 |
| 2 |
R&M |
5410 |
3866 |
1530 |
14 |
| 3 |
Employee's expenses |
9842 |
2863 |
6730 |
249 |
| 4 |
Contribution to Pension |
||||
| And gratuity fund |
9290 |
0 |
9290 |
0 |
|
| 5 |
A&G expenses |
983 |
134 |
820 |
29 |
| 6 |
Depreciation |
14758 |
926 |
13722 |
110 |
| 7 |
Interest expenses |
19766 |
1632 |
17990 |
144 |
| 8 |
Other expenses |
463 |
0 |
463 |
0 |
| 9 |
Lease charges |
2 |
0 |
2 |
0 |
| 10 |
SLDC's operational |
0 |
0 |
0 |
0 |
| charges |
1125 |
0 |
0 |
1125 |
|
| 70459 |
18241 |
50547 |
1671 |
||
(j) SLDC charges:-
RVPN has indicated SLDC operation charges of Rs.1090 lakhs & Rs.1125 lakhs for the year 2003-04 & 2004-05. For the year 04-05, when RVPN will not be effecting trading, various expenses of RVPN has been apportioned to partnership generation projects, transmission and SLDC (vide table 18 of the ARR) and with such apportionment considered SLDC charges are indicated as Rs.1682 lakhs for the year 04-05. It is observed that SLDC operational charges are the sum of ULDC and NRLDC charges determined by CERC. In its order, on charges of hardware & software of unified load despatch and communication (ULDC) Scheme provided by Power Grid to the States, CERC has directed provisional payment of 70% of state portion of ULDC charges. Taxes etc. are payable extra. CERC’s final order has not yet been issued. Based on CERC’s order, RVPN has worked out SLDC’s operational charges as under :-
| Particulars |
Amount lakhs of Rs. |
Allocated to Rajasthan |
Total payable lakhs of Rs. |
Payable % |
As per CERC’s orders lakhs of Rs. |
|
| (A) |
ULDC charges |
|||||
| (i) |
Direct debit to RVPN |
670.25 |
100% |
670.25 |
70% |
469.18 |
| (ii) |
Debit to Generating Companies passed onto RVPN (a) CSGS (b) BBMB |
5435.35 375.45 |
13.4% 22.6% |
828.34 84.85 |
70% 70% |
509.83 59.39 |
| (B) |
NRLDC Expenses |
657.20 |
13.4% |
88.06 |
100% |
88.06 |
| 1570 |
1125 |
Thus, with the final order of CERC, SLDC’s operational charges and hence SLDC’s total charges may undergo a major change. Other charges debited by RVPN to SLDC in respect of R&M, employee cost & A&G expenses shall undergo minor changes in view of expenses considered reasonable by the Commission. As SLDC has been established recently, entire reduction due to fully depreciated assets has been accounted for under transmission. Accordingly, other expenses debitable to SLDC shall be Rs.546 lakhs and total SLDC charges will be Rs.1671 lakhs.
(K) Prior period Expenses
RVPN had indicated prior period expenses of Rs.2000 lakhs for the year FY 2003-04. In reply to Commission’s observations, RVPN has indicated that these are on account of revision of tariff of Central Sector Generation Stations, that of PGCIL, incentive, income tax & revision of global energy accounts etc for past years. The amount of supplementary bills received up to January 2004, is intimated to be Rs.41.86 crores compared to the provision of Rs.20 crores indicated in the tariff petition for FY04-05. It is learnt that some debit/credit may also be received on account of CERC/Court Orders and finalization of UI accounts etc. and State Government has decided that such credit/debit of period upto 31.3.04, even received after 1.4.04, will be to RVPN’s account. In this respect, the Commission observes that RVPN has projected loss of RS.18041 lakhs for the year 2003-04 and has proposed for consideration of this loss as regulatory assets. In estimating the said loss, RVPN has considered prior period expenses of Rs.2000 lakhs. Any change in prior period expenses shall reflect in loss for FY2003-04 and treatment to be given to such loss, whether to consider it as regulatory asset or not, is discussed later in this order.
(l) Non-Tariff Income
RVPN has considered Non-tariff income of Rs.3354 lakhs for FY 2004-05 compared to Rs.7482 lakhs for FY 2003-04 (vide form 1.1). The reduction is anticipated as for FY 2003-04 non tariff income includes rebate availed for timely payment of current bills of Central Sector Generating Stations & Transmission undertaking (PGCIL), which will not be available for FY 2004-05 to RVPN because of shedding of trading activity.
The annual Revenue Requirement (ARR) for the year 2004-05 made in the petition and as allowed by the Commission is as under:
(Rs.in lakh)
| Serial No. |
Head |
Proposed by RVPN |
Allowed by the Commission |
| (A) |
Expenditure: |
||
| 1. |
Generation Fuel Cost |
8820 |
8820 |
| 2. |
Employees cost |
10227 |
9842 |
| 3. |
Contribution to Pension/Gratuity Fund. |
9290 |
9290 |
| 4. |
Administrative & General Expenses. |
983 |
983 |
| 5. |
Repair and Maintenance |
5912 |
5410 |
| 6. |
Depreciation |
15028 |
14758 |
| 7. |
Interest and finance charge |
19766 |
19766 |
| 8. |
Lease rent |
2 |
2 |
| 9. |
Other expenses |
463 |
463 |
| 10. |
SLDC Operational expenses |
1125 |
1125 |
| Total (A) |
71616 |
70459 |
|
| Break up of Total (A) |
|||
| Transmission |
51222 |
50547 |
|
| Generation projects |
18712 |
18241 |
|
| SLDC |
1682 |
1671 |
|
| (B) |
Income from: |
||
| 1. |
Transmission of energy. |
47868 |
47193 (50547- other income of 3354) |
| 2. |
Generation projects |
18712 |
18241 |
| 3. |
SLDC |
1682 |
1671 |
| 4. |
Non tariff sources |
3119 |
3119 |
| 5. |
Govt. Subsidy/Grants. |
235 |
235 |
| Total (B) |
71616 |
70459 |
|
| SURPLUS / DEFICIT (B-A): |
NIL |
NIL |
Regulatory Asset Charges:
29. RVPN has stated that as per the sixth schedule of Electricity (Supply) ACT 1948, the licensee is allowed to claim special appropriation to cover previous losses that have arisen from the business of electricity supply, in future year(s) and that as RVPN is expected to have a net revenue gap of Rs.18041 lakhs for the FY2003-04, mainly on account of increase in power purchase cost and as RVPN is operating on no profit no loss basis i.e. without any return on equity till FY04-05, it has requested that revenue deficit of Rs.18041 lakhs may be treated as regulatory assets. RVPN has proposed to recover these regulatory assets from Vitran Nigams in one year (i.e FY 2004-05) by levy of regulatory asset recovery charges of 6.93 p/KWh.
30. The Commission in its order dt.31.07.2003 approving ARR for 03-04 has estimated a deficit of Rs.8175 lakhs & has expressed that: -
“RVPN shall strive to make up the deficit of Rs.81.75 crores by effecting economy in cost of power purchase, other heads of expenditure and through fuel price adjustment (to be proposed by them). Even thereafter, for the deficit, if any, State Govt. shall provide subsidy to RVPN.”
31. Expenses & income as considered in the said order for ARR for FY03-04 and corresponding figures given in the ARR indicating deviations vis-à-vis the said order are as under:-
Figures in lakhs of Rs.
| S.No |
Particular |
For the financial year 03-04 |
||
| As Per Commission’s Order of 31.07.03 (table 1, 8 & 10) |
As per the ARR of 2004-05 (table 1, 11,15 & 16) |
Difference |
||
| A |
Sales to Vitran Nigams, MU |
23539 |
24380 |
841 |
| B |
Purchase of Power MUS |
25808 |
26740 |
932 |
| c. |
Expenditure:-1.Purchase of Power (AV rate p/KWh) 2. Generation of power (by RVPN at partnership projects) 3.(a)Establishment cost (b)Contribution to pension & gratuity Trust 4.R&M 5.A&G Expenses 6.Depreciation 7.Intt. and Finance charges 8.Lease Rent 9.prior period expenses Total:- |
465726 8849 10062 8451 6571 997 13724 20251 155 _ -_____ 534786 |
489743 9324 9688 8704 5374 894 13326 20857 155 2000 561154 |
+24017 (+)475 (-)374 + 253 (-)1197 (-)103 (-)398 + 606 - +2000 25279 |
| D. |
Income1.Revenue from sales to Vitran Nigams 2.Non-Tariff Income 3.Subsidy, grants & debentures 4.Revenue from sale a). Common pool consumer b)MP from Chambal-Satpura complex. Total |
501381 9014 341 2375 13500 ________ 526611 |
519294 7335 147 16337 543113 |
17913 (-)1679 (-)194 (+)462 16502 |
| E. |
Deficite (C-D) |
8175 |
18041 |
|
32. Thus, RVPN has effected saving in expenses in various items to the extent of Rs 2072 lakhs & there has been additional income of Rs.462 lakhs from the outside state sale. Had there been no additional expenses, these would have reduced RVPN’s deficit by Rs.2534 lakhs and subsidy to the extent of Rs.5641 lakhs would have been required to be provided by the State Government, in addition to Rs.341 lakhs considered in ARR (i.e. total Rs.5982 lakhs).
33. Out of the income and expenses, additional contribution to Pension & Gratuity Trust has been on account of additional sales to Vitran Nigams and as per the Commission’s order is inevitable. Similarly, additional interest and finance charges can be considered beyond RVPN’s control. Lesser non-tariff income is also beyond RVPN’s control and additional non-controllable expenses etc. on these accounts is Rs.3013 lakhs (Rs.606 lakhs + Rs 253 + Rs. 1679 + Rs.475 lakhs as extra cost of generation of power).
34. Increase in the cost of power purchase has been Rs.6104 lakhs (i.e. Rs.24017-17913 lakhs). In addition prior period expenses of Rs.2000 lakhs was indicated in the ARR which has increased in 2003-04 and the net amount up to jan 04 was indicated later as Rs.4186 lakhs. Cost of power purchase from various sources has been as under for FY 2003-04.
| As per Commission’s Order (vide table 8) |
As per this ARR (Form 3.1) |
|||
| Particulars |
MUs (% of total) |
Cost in Lacs (average rate in paisa/KWh) |
MUs (% of total) |
Cost in lakhs & (average rate in paisa/KWh) |
| 1.RVUN’s Power Stations |
13899 |
294506 (211.89) |
13604 |
294200 (216.26) |
| 2.Partnership Projects |
3221* (Excluding RFF) |
Already considered in above para |
3090 * (excluding RFF) |
Already considered in above para |
| 3.(a) Central Sector Power Stations (b) UI |
8326 (32.3%) |
151546 (182.02) |
8791 (with UI of (-) 394 MU considered) (33.6%) |
155990 (177.44) |
| 25446 |
446052 |
25485 |
450190 |
|
| 4.(a)Wind.P.S. b)Captive PS |
70 10 |
2457 (350.98) 226 (226.00) |
135 |
4725 (350.0) |
| 80 |
2683 |
135 |
4725 |
|
| 5.(a) RFF (b)(i) Interregional transfer (ii) PTC (iii) NJPC (iv) Tehri (v) Bilateral |
183 99 |
3154 1773 (179.00) |
183 - 350 200 25 362 |
3145 - 4360 (218.0) 202.5 550 (220.0) 7240 (200.0) |
| 25808 |
453661 |
26740 # |
477035 |
|
| 6.Wheeling Charges of PGCIL |
- |
12064 |
12708 |
|
| 465725 |
489743 |
|||
| 7. Supplementary bill for prior period adjustment |
4186 |
|||
| Total |
465725 |
493929 |
||
6825 (195.0) Av.#Excluding partnership projects
35. From the above, it is observed that against assessment of purchases of 25808 MUs, anticipated purchases for 03-04 is likely to be 26740 MUs, i.e. extra 932 MUs. It is observed that extra purchase includes additional purchases from wind and biomass power plant at the highest rate of Rs.3.50 per KWh. Promotion of non-conventional energy sources is the Commission’s policy. It is also specified as one of the functions of the Commission under section 86(e) of the Electricity Act 2003. Generation from wind based NES power stations is unpredictable. In consideration to these, such additional cost due to extra purchase of 65 MU (i.e.135 MU-70 MUs) from these power stations by RVPN and additional cost thereof above BST (i.e. Rs 8.90 crores) is beyond its control.
36. It is observed that though purchases from central sector power stations has been more, cost per KWh of power purchase (including bilateral purchases & power grid’s transmission charges, but excluding prior period expenses for supplementary bills of Rs 4186 lakhs) is 196.97 paisa against 196.30 paisa anticipated by the commission in its order on ARR for 03-04. In consideration to these, only the supplementary bills of prior period can be considered beyond RVPN’s control.
37. Thus extra cost has been mainly due to lesser generation at RVUN’s power stations with the cost remaining practically the same. This has resulted in cost of power purchases from RVUN’s power stations being 4.37 paisa higher. Commission will examine the same in detail, while determining generation tariff of RVUN’s power stations.
38. Against the projections of purchase of 25808 MUs, RVPN has made purchase of 26740 MUs, on account of State Govt’s policy to effect increased hours of supply to agricultural & rural consumers. Additional purchases have been also due to inability of Vitran Nigams to effect reduction in T&D losses. Even reduction of T&D loss to target level would have required no extra purchases for such increased hours of supply. Commission feels that extra cost of power purchase on this account (except that from NES power stations where entire generation would have to be purchased in any case) should be borne by State Government. It has been intimated by RVPN that gap of Rs.180.41 crores has been partly met by interest free loan of Rs.200 crores provided by the State Government to effect additional purchase of power during Rabi season. In consideration to these, Commission considers that: -
(i) Special appropriation of Rs. 80.89 crores (i.e. Rs.30.13 crores as per para 33, plus Rs. 8.90 crores as per para 35 plus additional supplementary bills of Rs. 41.86 crores) shall be considered as regulatory assets.
(ii) Subsidy of the balance amount of Rs. 121.38 crores shall be provided by the State Government. This requirement is based on deficit of Rs. 202.27 crores determined as above. The same shall be reviewed as per RVPN’s audited accounts for the year 03-04 and supplementary bills/credits from central sector generation and transmission companies for the period up to 31.3.04 even if received after 31.3.04. In case the revenue gap increases, additional subsidy will be provided to RVPN by the State Government and in case subsidy already provided is found to be in excess, the excess amount shall be passed on to Vitran Nigams in the ratio of 36:36:28.
(iii) The Commission has been informed that the State Government has provided interest free loan of Rs. 200 crores to meet the additional purchase of power including the gap caused due to reasons beyond RVPN’s control. The State Government has provided subsidy in earlier years to cover revenue deficit. The State Government should, therefore, convert this loan into subsidy as has been done in earlier years. The RVPN is not allowed to recover in 2004-05 the amount of Rs. 80.89 crores treated as regulatory asset but its recovery may be allowed in subsequent years, if for any reason subsidy is not received from the State Government.
Transmission tariff:
39. Transmission tariff shall be based on contracted / allocated capacity. To determine the capacity to be handled by RVPN, an assessment of power purchases by Vitran Nigams and likely sources to meet the same is necessary. Vitran Nigams have filed their Annual revenue requirement for 04-05. The Commission has made assessment of their power purchase requirement in the exercise undertaken by the Commission while examining their ARR. Accordingly energy requirement of all the three Vitran Nigams taken together and energy transmission by RVPN shall be 24269 MUs & 26074 MUs respectively:-
40. In the assessment made by the Commission of power to be purchased by the three Vitran Nigams from various sources while examining their ARR, the Commission has estimated the Transmission capacity to be handled by RVPN in FY 04-05 as 4712.2 MW.
Power handled by RVPN for FY 2004-05.
| Sr. No, |
Particulars |
Rated cap acity ,MW |
Aux. Cons. % |
Allocation firm ,% |
Temp.alloc out of 15% |
Trans. losses,% |
Total MW |
PLF |
Availability to RVPNEx-Ph _Bus MU |
Availability at RVPN's System MU |
|||||
| A. NTPC's Thermal Power stations |
|||||||||||||||
| 1 |
Singarauli STPS |
2000 |
8.25% |
15.00% |
3.57% |
4.25% |
326.28 |
83.08% |
2479.98 |
2374.58 |
|||||
| 2 |
Rihand STPS |
1000 |
9.00% |
9.50% |
3.57% |
4.25% |
113.88 |
78.78% |
820.80 |
785.92 |
|||||
| 3 |
Dadri TPS |
840 |
9.65% |
0.00% |
4.25% |
0.00 |
75.68% |
0.00 |
0.00 |
||||||
| 4 |
Unchar TPS-I |
420 |
9.74% |
4.76% |
1.13% |
4.25% |
21.38 |
75.88% |
148.42 |
142.11 |
|||||
| 5 |
Unchar TPS-II |
420 |
9.74% |
9.05% |
3.57% |
4.25% |
45.81 |
76.97% |
322.57 |
308.86 |
|||||
| 6 |
Anta GTPS |
419 |
3.00% |
19.77% |
3.58% |
4.25% |
90.87 |
73.27% |
609.12 |
583.23 |
|||||
| 7 |
Auraiya GTPS |
663 |
3.00% |
9.17% |
3.58% |
4.25% |
78.51 |
72.26% |
519.04 |
496.98 |
|||||
| 8 |
Dadri GTPS |
830 |
3.00% |
9.18% |
0.83% |
4.25% |
77.17 |
69.83% |
492.98 |
472.03 |
|||||
| Total |
6592 |
753.89 |
5392.91 |
5163.71 |
|||||||||||
| B |
NHPC's Hydro Power Stations |
||||||||||||||
| 1 |
Tanakpur |
94 |
0.50% |
9.17% |
0.00% |
4.25% |
8.21 |
50.72% |
38.11 |
36.49 |
|||||
| 2 |
Salal |
345 |
0.50% |
8.60% |
0.00% |
4.25% |
28.27 |
51.81% |
133.99 |
128.29 |
|||||
| 3 |
Chamera |
540 |
0.50% |
19.60% |
0.00% |
4.25% |
100.84 |
47.56% |
438.75 |
420.10 |
|||||
| 4 |
Uri |
480 |
0.50% |
8.96% |
0.00% |
4.25% |
40.97 |
57.74% |
216.45 |
207.25 |
|||||
| 5 |
Dulhasti |
0 |
0.50% |
0.00% |
0.00% |
4.25% |
0.00 |
57.74% |
0.00 |
0.00 |
|||||
| 6 |
Chamera -II |
300 |
0.50% |
23.20% |
0.00% |
4.25% |
66.31 |
10.00% |
60.66 |
58.09 |
|||||
| 7 |
Nathpa Jakhri |
1500 |
0.50% |
7.50% |
6.66% |
4.25% |
202.36 |
10.00% |
185.13 |
177.26 |
|||||
| 8 |
Tehri-I3 |
1000 |
0.50% |
6.00% |
0.00% |
4.25% |
57.16 |
20.00% |
104.59 |
100.15 |
|||||
| 4259 |
504.12 |
1177.68 |
1127.63 |
||||||||||||
| C. |
NPC's Power Stations |
||||||||||||||
| 1 |
RAPP-I |
100 |
10.0% |
100.0% |
0.0% |
4.25% |
86.18 |
25.00% |
197.10 |
188.72 |
|||||
| 2 |
RAPP-II |
200 |
10.0% |
100.0% |
0.0% |
4.25% |
172.35 |
67.24% |
1060.24 |
1015.18 |
|||||
| 3 |
RAPP-III |
220 |
10.0% |
20.0% |
0.0% |
4.25% |
37.92 |
81.02% |
281.06 |
269.11 |
|||||
| 4 |
RAPP-IV |
220 |
10.0% |
20.0% |
0.0% |
4.25% |
37.92 |
81.02% |
281.06 |
269.11 |
|||||
| 5 |
NAPP |
440 |
10.0% |
10.0% |
0.0% |
4.25% |
37.92 |
83.60% |
290.01 |
277.68 |
|||||
| 1180 |
372.28 |
2109.46 |
2019.80 |
||||||||||||
| D. |
RVUN's Power Stations |
||||||||||||||
| 1 |
Kota STPS@ |
1045 |
10.0% |
100.0% |
0.0% |
0.00% |
940.50 |
74.45% |
6133.77 |
6133.77 |
|||||
| 2 |
Suratgarh STPS |
1250 |
10.0% |
100.0% |
0.0% |
0.00% |
1125.00 |
80.00% |
7884.00 |
7884.00 |
|||||
| 3 |
Ramgarh GTPS# |
35.5 |
3.0% |
100.0% |
0.0% |
0.00% |
34.44 |
66.80% |
201.49 |
201.49 |
|||||
| 4 |
Mahi PH-I |
50 |
2.0% |
100.0% |
0.0% |
0.00% |
49.00 |
13.54% |
58.12 |
58.12 |
|||||
| 5 |
Mahi PH-II |
90 |
2.0% |
100.0% |
0.0% |
0.00% |
88.20 |
13.75% |
106.27 |
106.27 |
|||||
| 6 |
Mini Micro Hydel |
23.85 |
2.0% |
100.0% |
0.0% |
0.00% |
23.37 |
6.14% |
12.57 |
12.57 |
|||||
| 2494.35 |
2260.51 |
14396.22 |
14396.22 |
||||||||||||
| E. |
Partnership projects |
||||||||||||||
| 1 |
BBMB - bhakra |
1490 |
2.0% |
15.22% |
0.0% |
4.25% |
212.80 |
41.95% |
816.70 |
781.99 |
|||||
| 2 |
BBMB - dehar |
990 |
2.0% |
20.00% |
0.0% |
4.25% |
185.79 |
38.25% |
650.17 |
622.54 |
|||||
| 3 |
BBMB - pong |
372 |
2.0% |
58.50% |
0.0% |
4.25% |
204.20 |
36.90% |
689.37 |
660.08 |
|||||
| 4 |
chambal hydro |
386 |
2.0% |
50.00% |
0.0% |
4.25% |
181.10 |
12.53% |
207.61 |
198.78 |
|||||
| 5 |
satpura - TPS |
312.5 |
10.0% |
40.00% |
0.0% |
4.25% |
107.72 |
66.00% |
650.43 |
622.79 |
|||||
| 3550.5 |
891.61 |
3014.28 |
2886.17 |
||||||||||||
| F. |
NES Power stations |
||||||||||||||
| 1 |
wind farms |
113.37 |
0.0% |
100.00% |
0.0% |
0.00% |
113.37 |
28.26% |
280.66 |
280.66 |
|||||
| 2 |
Bio-mass |
7.00 |
0.0% |
100.00% |
0.0% |
0.00% |
7.00 |
28.26% |
17.33 |
17.33 |
|||||
| 120.37 |
120.37 |
297.99 |
297.99 |
||||||||||||
| G. |
RFF |
25 |
0 |
25.00 |
182.50 |
182.50 |
|||||||||
| H |
Others (bilateral & interregional) |
0.00 |
0.00% |
0.00 |
0.00 |
||||||||||
| Total (A to H) |
4927.78 |
26571.04 |
26074.03 |
||||||||||||
| I |
Less outside the state sales |
Common pool supply fromBBMB |
130MU |
37.96 |
|||||||||||
| - Adjustment for undelivered energy from Chambal satpura |
505MU |
177.53 |
|||||||||||||
| J |
Net capacity Handled by RVPN transmission system |
4712.29 |
|||||||||||||
| # One GT & ST excluded |
|||||||||||||||
| @ lesser PLF considered due to mishap of unit VI |
|||||||||||||||
41. With transmission expenses (without ROE), determined at para 28 above, as Rs. 50547 lakhs less non-tariff income of Rs.3354 lakhs and capacity of 4712.20 MW handled by RVPN, demand charges of transmission tariff works out as Rs. 83.45 per KW per month which is rounded to Rs.83.5 per KW per month. Commission accordingly specifies transmission tariff as under :-
(i) Transmission losses of 4.60%
(ii) Demand Charge= Rs.83.5 per KW of contracted capacity (or maximum demand caused if higher) per month
42. Transmission charges as above shall be payable by Vitran Nigams, generating companies and other person using RVPN’s transmission system. In respect of supply from power stations of RVUN and RVPN to Ajmer, Jaipur and Jodhpur Vitran Nigams, transmission charges will be paid only by Vitran Nigams and in case of supply to others, transmission charges at same rate shall be payable by generating company.
SLDC
charges.
45. For efficient grid management, the generating stations of Rajasthan Vidyut Utpadan Nigam (RVUN) and the Vitran Nigams shall give daily schedules of generation and drawal respectively to SLDC for which SLDC may issue directions to RVUN and Vitran Nigams. In case RVUN or Vitran Nigam fails to furnish daily schedules to SLDC, the SLDC shall be entitled to charge a fee of Rs. 50,000 per schedule for preparing schedule on behalf of the RVUN or the Vitran Nigam. In addition, the SLDC shall also be free to impose penalty on them for non compliance with its directions under section 33 of the Electricity Act 2003.
46. Other generating stations with installed capacity of 1 MW or above shall also give daily schedules and generating stations based on non conventional energy source shall submit weekly schedules. In case they fail to furnish their schedule, the SLDC shall be entitled to charge a fee of Rs. 5000 per schedule.
47. Based on the yearly, monthly and daily schedules submitted by the generating companies and distribution licensees, the SLDC will assess surplus generating capacity, if any, of the generating stations in the state and the generating stations shall be free to sell surplus power in such a case. Availability based tariff shall also be introduced for the generating stations in the state which will facilitate optimum capacity utilization of generating stations. The RVUN and the Vitran Nigams shall make preparation for introduction of ABT from 1st July 2004.
48 Recovery of SLDC charges of Rs. 1671 lakhs shall be effected in 12 monthly installments of Rs. 139.25 lakhs. Monthly recovery from Jaipur, Ajmer and Jodhpur VVN shall be effected in proportion to 36:36:28. As and when CERC finalises / revises ULDC charges and NRLDC charges, then corresponding changes in SLDC charges shall be shared in the same proportion.
49 SLDC charges from other persons using RVPN’s transmission system shall be Rs. 3000 per day per schedule as specified by CERC for SLDC for short term open access users.
Generation expenses
50. As generation from partnership projects have been re-assigned to Vitran Nigams and these power stations will be operated by RVPN on no profit no loss basis, Generation cost of the projects net of revenue from sale to common pool consumers and deemed sale to MPEB shall be shared by three Vitran Nigams in the ratio of 36:36:28.
51. In consideration to no provision of interest charges on working capital made by RVPN, transmission charges, SLDC charges and expenses RVPN’s generating stations shall be subject to late payment surcharge at the rate of 1.25% per month. In respect of three Vitran Nigams, late payment surcharge shall be at the rate of interest charges on short-term loans taken by RVPN.
52. This order shall be effective from 1.4.04. Copy of this order shall be supplied to the petitioner, respondents, RVUN and the three Vitran Nigams.
Sd/- Sd/- Sd/-
(S. M. Dharendra) (Shanti
Prasad) (Arun Kumar)
Member Member
Chairman