Annual Report 2002-2003

The Commission has been functioning since 2^nd January 2000. Shri Arun Kumar continued to be the Chairman and Shri Shanti Prasad and Shri P.K. Das were its members. Shri P.K. Das expired on 12^th January 2003 after a brief illness and the Commission continued to function without his valuable contribution for the remaining part of the year.

Applications from following persons were received in the Commission for grant of licence on dates mentioned against each of them.

1.	Rajasthan State Mines and Minerals Ltd., Udaipur	17.4.2002
2.	Vijay Solvex Ltd., Alwar	27.5.2002
3.	Kalpa-Taru Power Transmission Ltd. , Mumbai	1.1.2003

After examining the application and the draft licence proposed by Rajasthan State Mines and Minerals Ltd. (RSMML), observations of the Commission were conveyed on 6.7.02. Consent to the amendments was received from RSMML on 30.11.02. The proposed draft licence was published by the RSMML as directed by the Commission on 13.1.2003 in newspapers for inviting objections/comments from general public by 18.2.2003. No comments/objections were received in the stipulated time. The Commission granted licence to RSMML on 29.3.2003 for a period of 20 years for supplying electricity to large industrial consumers in the State.

M/s Vijay Solvex Ltd. submitted draft licence on 27.5.02. Observations of the Commission were conveyed to them on 27.8.02 on which reply of the company was received on 28.9.02. A copy of proposed draft licence to be issued was sent to them on 26.12.02 for conveying their acceptance, which was received on 21.3.03.

M/s Kalp Taru submitted draft licence on 1.1.03. The Commission conveyed its comments on 6.1.03, which were replied by them on 28.1.03. The Commission directed the firm on 10.2.03 to publish notice in newspapers. No response was received till 19.3.03 when they raised certain other matters to be incorporated in the licence. They also drew attention of the Commission to the provision of “open access” proposed in the draft Electricity Act, 2003. The firm was asked to discuss the matter with the Commission but no response was received.

i. Standards of Performance (SoP) of Vitran Nigams In terms of the licences issued to Vitran Nigams each licensee was required to submit ‘Standards of Performance’ for approval of the Commission within six months of grant of the licence.

After examining the draft SoP submitted by the 3 Vitran Nigams, the Commission on 8^th August 2002 directed the Vitran Nigams to publish a notice inviting objections/ suggestions from the public by 25^th September 2002. The Nigams published these notices in two leading State level Hindi Newspapers and one leading National English Newspaper in August 2002. Objections were received from eight persons. The draft SoP was also discussed by the Commission Advisory Committee in its third meeting held on 25^th October 2002. A public hearing was held in the Commission office on 6^th March 2003 wherein all the objectors who were present were heard in person. The Commission thereafter taking into consideration the views of the Commission Advisory Committee and all objections/suggestions finalised the Standards of Performance for the three Nigams and issued the Rajasthan Electricity Regulatory Commission (Distribution Licensees Standards of Performance) Regulations, 2003 on 29^th March 2003. The salient features of the Standards of Performance are as follows: -

a) The Nigam should register every complaint made by a consumer and allot a complaint number.

b) Complaints relating to failure of power supply should be attended to in 4 hours in urban areas and within 24 hours in rural areas.

c) Complaints relating to line faults should be attended to within 8 hours in urban areas and within 24 hours in rural areas.

d) The replacement of distribution transformer should be within 2 days in urban areas and within 3 days in rural areas.

e) The scheduled outages should be specified well in advance through the media & shall not normally exceed 10 hours on any day.

f) On consumer's complaint, the defective meter should be replaced by a new one within 15 days. After removal, the defective meter should be checked in the laboratory within 21 days.

g) For domestic and non domestic connections, the demand note should be issued within 21days of receipt of completed application and connection should be released after receiving the demand note amount within 30 days in urban areas and within 45 days in rural areas – barring the cases warranting augmentation of the system.

h) The time limit to release the Agriculture connections should be 120 days from receipt of payment of demand note or due date of demand note whichever is later.

i) The complaint regarding arithmetical error in bills or inadequate time allowed for payment of bill should be resolved the same day if complaint is made in person and on the day of receipt, if made by post.

j) The commission should fix benchmarks for the overall performance standards after one year and these will be reviewed from time to time to accelerate speedy improvement.

While issuing the Performance Standards Regulations for the distribution companies of the State, the Commission has introduced for the first time a concept of ascertaining system reliability of the licencee. For this purpose, the number of interruptions in supply of power a consumer has to bear and the duration of such interruptions have been taken as the guiding principle by the Commission. The licencees have been asked to maintain data in this regard. The Commission proposes to judge the systems reliability by the following indices: -

(a) SAIFI (System average interruption frequency index): System average interruption frequency index shall be calculated by dividing the total number of sustained interruptions to consumers in a year by the total number of consumers served. The index shall be expressed as number of interruptions per consumer per year and shall be calculated annually.

After ascertaining the existing level systems reliability, the Commission would lay down targets for improvement.

(b) SAIDI (System average interruption duration index): It shall be calculated by dividing the total minutes of sustained interruptions in supply to consumers in a year by the total number of consumers served. The index shall be expressed as number of minutes of interruption per consumer per year and shall be calculated annually.

ii Standard of Performance of Prasaran Nigam- The Rajasthan Rajya Vidyut Prasaran Nigam (RVPN) had submitted on 28.12.01,a draft of the Standards of Performance as required by the licence granted to it by the Commission. The Commission considered this draft and several comments/observations were conveyed to RVPN on 14.3.02 and RVPN was advised to submit a revised draft. RVPN submitted a revised draft on 12.6.2002.This draft was approved by the Commission and RVPN was directed to supply the same after making changes as suggested by the Commission to affected parties viz. generators connected to RVPN’s system, Rajasthan Rajya Vidyut Utpadan Nigam, Jaipur, Jodhpur & Ajmer Vidyut Vitran Nigams, Rajasthan Atomic Power Plant (RAPP) & Power Grid Corporation of India Ltd. (PGCIL). The Commission also thought it fit to seek comments of Principals of four leading Engineering Colleges of the State, and Chief Electrical Inspector (Rajasthan). RVPN supplied them the copy of performance standard vide its letter dated 9.8.2002. Generators supplied with its copies were M/s Binani Cement Ltd., M/s DCM-Sriram Consolidated Ltd., M/s RSPCL, M/s Rajasthan State Mines & Minerals Ltd., M/s Kalani Industries Ltd., M/s Vijay Solvex Ltd. & M/s Vishal Export Overseas Ltd. While four engineering colleges were Malviya Regional Engineering Collage at Jaipur & Engineering colleges at Kota, Jodhpur & Ajmer. In response to the notice objections from three persons were received. A hearing of objectors was held on 19^th December 02 by a bench of the Commission presided over by Members Shri Shanti Prasad and Shri P.K. Das. Unfortunately before the bench could make its order Shri. P.K.Das, Member expired. Consequently the Commission decided to hear the objections again on 7.3.2003. After rehearing the objectors, order was passed on 24.3.03 approving the Standards of Performance for the transmission company.

iii 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 approved this draft and 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.

iv Metering Code for Rajasthan Grid- This Code will form a part of the ‘Grid Code’ formulated under the terms of the ‘Transmission License’ issued to RVPN. RVPN submitted final version of ‘Metering Code for Rajasthan Grid-2002’ (Metering Code) for the approval of the Commission. Notice inviting suggestions/ comments on ‘Metering Code’ by 27.4.2002 were published in newspapers on 9.4.2002. In response to the notice, objections/ suggestions were received from four persons, which were heard on 5.10.2002 by a bench of the Commission. The order was passed on 28.10.2002. Metering Code for Rajasthan Grid has been published by RVPN.

v Metering Code for Vitran Nigams-The Commission had directed the Vitran Nigams to improve the system of metering of energy supplied to consumers. For this purpose draft of Metering Code was received from the Vitran Nigams in the month of October 2001. These drafts were got revised in consultation with Vitran Nigams and the drafts were finalised in July 2002. After incorporating further modification on the basis of comments received from the Vitran Nigams, a notice was published in leading Newspapers of the state in the first week of October 02 seeking objections /suggestions from all stakeholders by 31st October 02. In response to this notice, objections /suggestions were received from three persons, which have been replied by the respective Vitran Nigams. The Commission proposes to hear the objectors and finalise the Code.

vi. Distribution Code- Under the provisions of licence, the Vitran Nigams were required to furnish draft Distribution Code to the Commission. The draft received by the Commission was examined and its comments were conveyed to the Nigams. A revised draft was received in the Commission in July 02. After careful consideration, the Commission finalised the document and directed the Vitran Nigams to publish a notice in leading newspapers inviting suggestions/comments from stakeholders on the distribution code. This notice was published on 5.01.03 seeking objections/ suggestions from all concerned within a period of thirty days.

Objections/suggestions were received from two persons. The Commission was to hold public hearing for considering the objections.

vii. Charter of consumer rights- In terms of the licence granted, every licensee is required to publish, with the approval of the Commission, a charter of consumer rights in respect of supply of safe, reliable and efficient electric energy to the consumers. Jaipur Vidyut Vitran Nigam Ltd. submitted the draft charter of consumer rights on 20^th October 2001. The Commission considered the charter and sent it to the 3 Vitran Nigams. In response, a final draft was received from Jaipur Vidyut Vitran Nigam Ltd. in July 2002 and Ajmer and Jodhpur Vitran Nigams conveyed their consent to the proposed draft. The draft, with some changes, was also put up to the Commission Advisory Committee and was discussed in the 3^rd meeting of the CAC held on 25^th October 2002. After inviting objections/suggestions from the individuals/ organisations a public hearing was held on 18^th February 2003 at Jaipur. It was decided that the Charter of Consumer rights be issued in the form of a Regulation.

viii. General Conditions of Supply- Under the provisions of licence granted to the Jaipur, Ajmer and Jodhpur Vitran Nigams, the Vitran Nigams were required to furnish draft General Conditions of Supply to the Commission. The Vitran Nigams furnished draft General Conditions and the Commission after examining and modifying the drafts directed the Vitran Nigams to publish a notice in leading newspapers inviting suggestions/comments from all stakeholders. This notice was published in leading newspapers on 18.04.02 seeking objections/ suggestions from all concerned within a period of fifteen days expiring on 03.05.02. On the request of various organisations, the date of receiving objections/ suggestions was extended upto 15.06.02.

A large number of objections/comments were received by the Commission on the proposed draft. After examining the objections and comments, the Commission felt the need for further revision of the draft. The Commission undertook the revision and the revised version of draft General Conditions of Supply was sent to Nigams for their comments, which were received in the last week of March 2003.

ix. Safety Code- The Commission has to frame & enforce safety standards. RVPN and three Vitran Nigams were requested to furnish draft safety standards. The Commission decided to issue a common safety code for all the utilities including generation, transmission and distribution utilities and incorporated the following sections.

Section 2: Safety measures in construction and maintenance works in Transmission & Distribution Lines.

Section 3: Safety measures in construction and maintenance works in Sub Stations.

Section 4: Safety measures in operation of sub-stations, transmission & distribution lines.

Section 5: Additional Safety requirements in generating stations (to be added later on)

The Commission decided to obtain comments/ objections of consumers and others through a notice published in newspapers. The last date of receiving objections was 5.5.03.

The Commission has 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 has been obtaining Quarterly Progress Reports. The annual performance of the Vitran Nigams was reviewed on 25.06.2002 with the Chairman and Managing Directors of the three Vitran Nigams.

i. Action Plan for Reduction in Losses- The Commission had directed the Vitran Nigams to reduce their distribution losses by 5.4% by the end of 2001-02, with an objective to bring down the losses to a level of 20% in a period of 5 years. For this purpose, the Nigams were also asked to prepare a long term action plan. The Vitran Nigams furnished the five-year Action Plan commencing from the year 2001-02 in the month of December 2001.The Commission sought quarterly reports from the Vitran Nigams to analyse the progress in implementation of the said Action Plan. However, the Nigams were not able to take action required for reducing losses in transmission & distribution as per the action plan.

ii. Field study for determining levels of distribution losses-The Commission had directed the Vitran Nigams to carry out a field study to determine distribution losses in supply of electricity to different categories of consumers as well as for ascertaining actual consumption of energy by unmetered agriculture consumers. The Vitran Nigams appointed consultants to carry out such a study. The Commission found that the inception reports submitted by the consultants for taking up the study needed considerable improvement. The suggestions of the Commission were considered by the Nigams and their consultants, but practically, no progress was made in conducting the study.

iii. Energy Audit: As per directions issued by the Commission, energy audit was required to be undertaken by all the Vitran Nigams in each revenue circle by metering power supply of all 11 KV feeders and ascertaining the quality of energy supplied and billed. Report of such audit with specified information was to be sent to the Commission every quarter. The matter was pursued by the Commission but the progress in metering of 11 KV feeders remained slow. Analysis of the information received as a result of such metering has not been done and action on its basis is yet to be initiated.

iv. Voltage Profile: To monitor the system voltage at consumer's end the Commission, through its tariff order, had approved sufficient amount for repairs & maintenance of lines and equipments. The Vitran Nigams were also directed to monitor the norms and voltage of supply at the farthest end of LT lines of selected agriculture feeders, five in each circle. Installation of voltage profile meters by the Vitran Nigams is in progress and first report has been received from Jodhpur Vitran Nigam in the month of Feb 03. Reports from other Vitran Nigams are expected shortly.

During the year 2002-03, the Commission has issued orders on following petitions received in previous years:

ii. Petiton by Nagar Nigam Jaipur for revision in tariff for Public Street Lighting.

iii.Petition by Rajasthan State Industrial Development and Investment Corporation (RIICO), Jaipur for revision in tariff for Public Street Lighting.

iv. Petiton by National Thermal Power Corporation Ltd. for Escrow arrangements made by RVPN with power producers.

During the year, the Commission has also received 8 petitions out of which 6 petitions have been admitted and balance are under process of admission. The details of the petitions admitted are as under.

Out of above, petition relating to grant of licence to RSMML, Udaipur has been decided by the Commission. Remaining petitions are under process.

M/s Hindustan Zinc Ltd. & M/s Shree Cement Ltd. approached the Commission for granting permission of captive power plants 24 MW & 36 MW respectively. These being generating company, their case was referred to State Government for sanction. Government of Rajasthan conveyed sanction to M/s Shree Cement Ltd. vide notification dated 7.9.02.

(a) Vitran Nigams: As per RERC (Tariff) Regulations, transmission and distribution companies are required to furnish to the Commission, annual statement of accounts and also prepare annual reports and statistics in prescribed forms by 31^st October. They are also required to file a statement of expected aggregate revenue requirement (ARR) for ensuing year during 15^th to 31^st December every year.

The ARRs for FY 03 were to be submitted to the Commission by the Vitran Nigams by 31^st December 2001. The Nigams intimated that the transfer scheme was being finalised by the State Government and the Nigams were not able to finalise their accounts for the period of July 19,2000 to March 31,2001. They requested for granting extension in time for submission of the ARR. The State Government notified the Transfer Scheme on 17.01.02 and opening balance sheets of the Nigams. Based on the Transfer Scheme, the Nigams prepared their accounts and furnished the ARR for FY 2002-03 in the month of June 02 .The ARR as presented were based on unaudited accounts for the period 19.7.2000 to 31.3.2001 and estimates for the FY 02. The Commission asked the Nigams to furnish the ARR on the basis of actual figures for the year FY 02, as the year was already over. The Nigams sought time to furnish ARR on the basis of audited account for FY 02, which was allowed by the Commission. The revised ARR was submitted in the month of October 02. Looking to the circumstances which caused delay, as explained by the Nigams, the Commission condoned the delay and considered the ARR.

The three Vitran Nigams also submitted the ARRs for the FY04 in January 2003, although these should have been submitted by 31^st December 2002. The delay was on account of late finalisation of ARR for FY 03. The Commission condoned the delay and considered the ARR.

The Commission deemed it fit to invite public comments/objections on the ARR filed by the three Nigams. The Commission directed the Nigams for issuing a notice containing salient points of the ARR and to publish it in one English language National level and two Hindi language State level newspapers in the prescribed format inviting objections/ suggestions from general public within thirty days of the publication of the notice. The notices were published on 22-23 Feb 2003. In response to the above notices, objections from six persons were received.

(b) Prasaran Nigam: Rajasthan Rajya Vidyut Prasaran Nigam Ltd. furnished the ARR for F.Y. 2002-03 in the month of June 02 .The ARR as presented were based on revised estimates of income and expenditure for the FY 02. The Commission asked the Prasaran Nigam to furnish the ARR on the basis of actual figures for the year FY 02 as the year was already over. The Prasaran Nigam sought time to furnish ARR on the basis of actual figures for FY 02, which was allowed by the Commission. RVPN submitted revised ARR in the month of July 02, but the same was prepared on the basis of budget estimates. Therefore, the Commission again advised RVPN to furnish the ARR on the basis of actual figures. The Prasaran Nigam again sought time to furnish ARR on the basis of actual figures for FY 02, which was allowed by the Commission. The revised ARR was submitted in the month of December 02.

The Prasaran Nigam also submitted the ARR for the FY 04 on 31^st December 2002. The Commission deemed it fit to invite public comments/objections on the ARRs filed by the Prasaran Nigam. The Commission directed the Prasaran Nigam for issuing a notice containing salient points of the petitions and to publish it in one English language national level and two Hindi language State level newspapers in the prescribed format inviting objections/ suggestions from general public within thirty days of the publication of the notice. The notice was published on 27.2.03. In response to the above notices, objections from two persons were received.

The High Court issued a notice dated 6.05.02 to the Commission informing that an appeal had been filed by Shri B.L. Shishoo of Jaipur against the Commission's tariff order dated 24^th March 2001.The appeal is pending in the High Court.

The Commission has to regulate the investment approval for transmission, distribution and supply of electricity to the entities operating within the State. Accordingly, the Commission examined the proposals received from the above companies and accorded its approval for investment plan pertaining to the year 2002-03 as under:

11. Appraisal of Financial status and Distribution losses of Vitran Nigams:

Commission vide its letter dt. 14.11.02 informed the State Government that the Vitran Nigams are having a deficit of such a magnitude that it could not be handled by Vitran Nigams, nor will it be possible to cover such gap by tariff revision and such high deficit will lead to a financial collapse, unless State Government provides the necessary support by way of subsidy. Vitran Nigams should improve their performance, particularly by reducing T&D losses. The Commission has prepared a note on the likely financial situation at the end of 2002-03 alongwith some suggestions to tackle it and sent it to the Chief Secretary, Government of Rajasthan with a request to provide necessary financial support to the utilities till such time as they become financially viable.

The Commission conveyed its serious concern to the State Government vide its letter dated 16.01.03 about the financial morass into which Vitran Nigams are getting entangled. It was pointed out that Vitran Nigams are not paying adequate attention to T&D loss reduction and efficiency improvement and unless remedial measures were taken by them on a very high priority, these Nigams were likely to have liquidity problem which would effect their capacity to serve.

(i) Tariff Policy: A Working Group was constituted by the Ministry of Power, GoI, under the chairmanship of Special Secretary, Ministry of Power for preparing a concept paper on tariff policy. A copy of the report submitted by the Working Group was received from the Ministry of Power seeking comments of the Commission. The Commission offered its comments vide its letter dt 24.02.03.

(ii) State Govt’s policy directive - Non-Conventional Energy: A new policy for promotion of Electricity Generation from Wind was received from the Government of Rajasthan. Comments of the Commission were offered to the State Government.

(iii) Captive Power Plant Policy of Government of Rajasthan: Subsequent to issue of revised Captive Power Policy (CPP) dt. 15.7.99, orders have been issued by the Government on 22.1.01, 9.7.01 and 5.12.01. The Government of Rajasthan had issued notifications on 21.4.2000, 26.2.2002 and 9.5.2002 to revise CPP. On the basis of these available notifications & amendments, an up-dated version of policy was prepared and sent to the Government for confirmation and issue clarification regarding order dt 22.1.01, 9.7.01 & 5.12.01.

(iv) Comments on PPA: Comments of the Commission on following Power Purchase Agreements (PPAs) & Wheeling & Banking Agreements (WBAs) were sent to RVPN on date mentioned against each of them for taking appropriate action by the parties to the agreement.

(i) Levy of Transformer Rent: Ajmer Zila Laghu Udyog Sangh, Ajmer, Employers' Association of Rajasthan, Jaipur and Beawar Laghu Udyog Sangh, Beawar represented that Ajmer Vitran Nigam has issued an order revising the levy of transformer rent & transformation losses for the MIP connections released before 7.8.90, without the Commission's approval.

The matter was enquired into and report received from the Ajmer Vitran Nigam was examined. Necessary clarification regarding transformation losses was issued and Ajmer Vidyut Vitran Nigam, was directed to withdraw orders regarding charging of transformer rent retrospectively and refund the excess amount recovered from the consumers on this account.

(ii) “Amnesty Schemes” for realisation of out-standing dues: The three Vitran Nigams proposed to introduce “Amnesty Schemes” for recovering old out-standing dues from consumers, by relaxing levy of late payment surcharge (LPS) on old arrears. The proposal contained three schemes for different categories of consumers viz domestic, non-domestic & agriculture consumers, industrial consumers and Govt. Dept./ autonomous bodies. These schemes were made applicable from 6th May 2002 to 15th July 2002. The total outstanding dues of all Vitran Nigams, as on 31st March 02, was indicated as Rs 627.95 crores. The Commission after examining the proposal approved the Scheme. It has been reported that response of the ''Amnesty Schemes" was quite encouraging which resulted in total realisation of Rs. 36 crores by the three Vitran Nigams, besides the amount of LPS waived, thereby reducing overall outstanding dues of the Vitran Nigams.

The State Government made certain announcement granting certain relief for agriculture consumers in minimum charges, temporary disconnection, reconnection charges, interest on outstanding dues, deferment of recovery of outstanding amount, shifting of connection etc. on account of severe drought conditions in the State. The matter was taken up with the Nigams and they were asked to intimate financial implication of each relief granted, amount of subsidy that the Govt. was required to pay to the utility etc. Complete information from Vitran Nigams is awaited in spite of reminders.

(i) Representations against Tariff Orders: The Commission received 43 representations against various provisions of Tariff for Supply of Electricity, issued by the Vitran Nigams in pursuance of the Tariff Orders dt 24.3.2001 and interpretation of the Vitran Nigams regarding some matters. The action taken by the Commission was as under:

(ii) Redressal of Public Grievances: The Commission has been receiving public grievances relating to various issues for redressal. Such grievances are duly categorized and analyzed before transmitting them to the concerned Nigam for redressal, to render relief to the complainants. Depending upon the merit or gravity of the case, sometimes necessary directions are also issued to the Nigam for compliance. The gist of the action taken by the Commission in this regard is as follows:

The remaining grievances have been sent to the concerned Nigams who have initiated action for redressal, which is being monitored by the Commission.

The second meeting of the Advisory Committee was held at Jaipur on May 17, 2002 when the important issues, like Standards of Performance, agriculture connections, measures for reduction of T & D losses, energy audit, consumer grievances, nigams’ settlement committees, better consumer relations by the nigams, scarcity of staff, General Conditions of Supply, Metering Code for Rajasthan Grid, Metering Code for the distribution licensees, non-conventional sources of energy, recovery of outstanding dues were discussed.

The Committee held its 3rd meeting on October 25,2002 at Jaipur and discussed the Charter of Consumer Rights, quality of power supply, electronic metering, amnesty scheme for revenue recovery, vigilance checkings, replacement of burnt transformers in the rural sector, release of new agriculture connections in a fixed time frame.

(i) Action against RREC: The Executive Director, Rajasthan Renewable Energy Corporation Limited (RREC) vide letter dt. 29.1.03 informed that RREC is setting up 10 KW stand-alone solar power plants for electrification of 22 Nos. villages under Rural Electrification Programme along with single-phase 230 V AC distribution system. Work in 6 villages was said to be completed. From this intimation the Commission observed that RREC has started generation of electricity without the consent of the Commission and has engaged in the business of transmission, distribution and supply of electricity, although RREC was not been authorised by the Commission to do so through a licence nor was it exempted from the requirement of obtaining a licence under the Rajasthan Power Sector Reforms Act 1999, (Act 23 of 1999). Therefore, the Commission issued a show cause notice on 20.2.2003. After considering the reply furnished by RREC, the Commission advised it to apply for exemption from supply licence and to file a petition for tariff fixation.

(ii) Action against RSMML:The Rajasthan State Mines and Minerals Ltd (RSMML) set up a wind powered generating station at Jaisalmer and applied to the Commission on 17th April 2002 for grant of a licence for supply of electricity to third party, namely, Hindustan Zinc Ltd (HZL), a 132 kV consumer of Ajmer Vidyut Vitran Nigam Limited (AVVNL), at their zinc smelter plant situated at Debari in Udaipur district. They entered into a quadripartite agreement with RVPN, Jodhpur & Ajmer Vitran Nigams on 29th August 2001 for transmission of electricity.

The Commission observed that RSMML had entered into the business of supply of electricity to HZL after coming into force the Rajasthan Power Sector Reforms Act 1999 and it could not have done so without a licence.

It was also observed that RSMML, while executing an agreement with HZL on 7.11.2001 for sale of electricity, offered to sell electricity at the rate of applicable HT consumers less 10%. Determination of tariff for supply to a consumer was a function of the Commission.

The Commission, therefore, ordered RSMML to discontinue the supply of electricity to HZL with immediate effect. Subsequently, RSMML was granted a supply licence.

The Commission revised the forms for furnishing annual accounts & tariff proposals by Bulk Supply & Transmission licensee, distribution licensees and generating companies and issued revised guidelines vide its Order no. 3 dated 18.11.2002.

The Commission had actively participated in evolution of the Electricity Bill and had sent comments on various drafts circulated from time to time. Shri Arun Kumar, Chairman of the Commission, also chaired a Committee constituted by the Forum of Indian Regulators (FOIR) for formulating the comments to be sent to the Standing Committee of Lok Sabha on behalf of the Forum. The Commission also sent its own comments to the Lok Sabha Committee.

The Commission held 13 meetings of the Commission in addition to several informal meetings of the Commission for performing its functions.

Some of the important decisions taken during these meetings are briefly stated as under:

The Commission discussed the draft Standards of Performance of Vitran Nigams, the regulations for Fines & Charges and Charter of Consumer Rights and decided appropriate modifications.

The Commission approved the reply in Writ Petition No.DBCW/4340/2001 and discussed the RERC (Method of Recruitment and Conditions of Service of Officers & Staff) Regulations, 2002, Power Purchase and procurement process Regulations, Wheeling and Banking agreements executed by RVPN and suggested modifications.

The licence application filed by M/s. RSMML, Udaipur was discussed. The annual report for the year 2001-02 and RERC (Fines & Charges) Regulations, 2002 were approved.

The Commission discussed the RERC (Condition of Service of Staff & Officers) Regulations, 2002 and suggested to redraft the same after considering the staffing pattern of other Commissions. The RERC (Power Purchase and Procurement Process) Regulations, 2002 were approved.

The RERC (Arbitration) Regulations 2002 were approved. The draft Standards of Performance of RVPN and forms for furnishing ARR & Tariff Petitions by Vitran Nigams were also discussed.

The RERC (Generation of Electricity) Regulations, 2002 were discussed and modifications were suggested.

The RERC (Generation of Electricity) Regulations, 2002 and RERC (Framing of Codes) Regulations, 2002 were approved. Hearing on draft Standards of performance of RVPN, Grid Code was ordered. The license petition of M/s. Vijay Solvex and draft PPAs were also discussed.

The Commission discussed the ARR of Vitran Nigams for the year 2002 –03 and 2003-04 and decided to obtain clarifications/ additional information.

The Commission accorded permission to M/s. Manglam Cement Ltd., for setting up of Captive Power Plant. The licence application of M/s. RSMML was also discussed and modifications suggested.

The Commission admitted the petitions of Vitran Nigams for determination of ARR for the year 2002-03 & 2003-04.

The petition of RVPN for determination of ARR for the year 2002-03 and 2003-04 and the licence application of M/s. Kalpatru Power Transmission Ltd. Mumbai were admitted.

The Safety Standards were approved for publication in newspapers. The licence to be issued to M/s. RSMML, Udaipur was also approved.

The Commission approved the proposal of Vitran Nigam to grant incentive to large Industrial Consumers who increase their consumption compared to the previous years’ consumption.

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 about latest developments in the sector, both nationally & internationally. Members of the Commission have been regularly participating in the meetings of the Forum.

The Commission organized the meeting of the sub group constituted by the Forum of Indian regulators to suggest changes in the Electricity Bill on 21^st -23^rd June 2002. This Sub Group consisting of six members under the Chairmanship of Shri Arun Kumar finalised its recommendations, which were communicated to the Standing Committee of the Lok Sabha.

The Commission also hosted 2 day General Body Meeting of the Forum at Jaipur on 3^rd & 4^th March 2003.

The sanctioned strength of the Commission is 31, comprising of one Secretary, one Joint Secretary (Tariff), four Dy. Secretaries, one Asstt. Secretary, 16 Executive Assistants and 8 Class-IV employees. 27 employees are presently working.

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 for not only the staff of the Commission but also for general public who can obtain the copies of documents by paying prescribed fee.

The Commission is fully aware of the present need for Human Resource Development. 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 ,Commission officers participated in 19 seminars/workshops. Secretary of the Commission participated in 10 days study tour of US from 13 April to 27^th April to study "Utility driven Energy Efficiency Programmes including utility driven DSM and end use Energy Efficiency Programmes".

The Commission also participated in consumers education programmes organized by an NGO, Consumers Unity and Trust Society. Such programmes were held at Alwar in August 02 at Swaimadhopur in Sept. 02 yet another at Jalore in Nov. 02, wherein a representative of the Commission was deputed to participate and attend to the consumers' queries.

For the year 2001-02, there was a budget provisions of Rs. 74.93 Lac. The actual expenditure was Rs. 74.60 Lac (provisional). The Commission has also received a sum of Rs. 4.14 lacs during the year 2001-02 towards fees and other misc. charges. Rent for office accommodation of the Commission has yet not been finalised by RVPN and this liability will be discharged when rent is finalised.

The Commission is having its own website having URL www.rerc.gov.in. All the orders, regulations, codes and other relevant information are available at the website. The website is being regularly updated.

Particulars	No
Appeal against order of Electrical Inspector	2
Applications for grant of licence for distribution and supply of power	3
Others	1