Annual Report 2014-15 BR - J&K SERC BR.pdfJ&K SERC (ANNUAL REPORT 2014-15) Page 4 of 98 5.7 Annual...

J&K SERC (ANNUAL REPORT 2014-15) Page 1 of 98

Annual Report (2014-15)

Jammu & Kashmir State Electricity Regulatory Commission Winter (Nov. to April) Ambedkar (Panama) Chowk, Railway Road, Jammu-180006 (J&K)

Ph. No’s 0191-2470160, 2470183 Fax: 0191-2479367, 0191-2470163

Summer (May to Oct) H.No. 101, Sector-A, Bagh-I-Hyder, Hyderpora Chowk,

Srinagar-190005 (J&K) Ph. 0194-2434582, FAX: 0194-2431817

Website:www.jkserc.nic.in & e-mail: [email protected], [email protected]



CONTENTS

1. The Commission 9

1.1 Introduction

1.2 The J&K Electricity Act, 2010

1.3 Organizational Setup of the Commission

1.4 Office of the Commission

2. Human Resources of the Commission 15

2.1 Human Resources

3. Functions of the Commission 19

3.1 Functions of the Commission

4. State Advisory Committee 23

4.1 State Advisory Committee

5. Activities of the Commission 27

5.1 Orders/Reports issued by the Commission during FY 2014-15

5.2 Tariff Orders

5.3 Details of Tariff Orders issued during the year 2014-15

5.3.1 Procedures & Process of Tariff Determination

New Regulations and Amendments issued by the Commission during FY 2014-15

5.4 Annual Performance Review (APR) for FY 2013-14 & Tariff Revision

Proposal for FY 2014-15 for JKPDD-D

5.4.1 Meeting of the State Advisory Committee on tariff petition (Distribution)

5.4.2 Public Hearings

5.4.3 Directives

5.5 Petition for Annual Performance Review FY 2013-14 and Transmission

tariff for FY 2014-15 for JKPDD-T

5.5.1 Meeting of the State Advisory Committee on tariff petition (Transmission)


5.5.3 Directives

5.6 Determination of Generic Levellised Tariff for Renewable Energy

Sources (RES) for FY 2014-15

5.6.1 Approved Generic Levellised Tariff for RES for FY 2014-15


5.7 Annual Performance Review for the FY 2014-15 and Transmission

Tariff for FY 2015-16 for JKPDD-T

5.7.1 Meeting of the SAC


5.8 Tariff Order of Hydro Electric Power Stations of J&K State Power

Development Corporation (Generation Utility) for FY 2015-16

5.8.1 Meeting of SAC


5.8.3 AFC/Tariff proposed by the petitioner and that approved by the Commission

5.8.4 Directives issued for the FY 2015-16 (Generation Sector)

5.9 Determination of Generic Levellised Generation Tariff for RES for FY 2015-16

5.9.1 Meeting of the SAC


5.9.3 Approved Generic Levellised Tariff for RES for FY 2015-16

5.10 Annual Performance Review (APR) for FY 2014-15 and Tariff Revision Proposal

for FY 2015-16 for JKPDD-D

5.11 Suo-Moto Petitions

5.12 Studies

5.13 Disposal of Petitions and Appeals (FY 2014-15)

5.14 Annual Reports of the Commission

6. Annual Statement of Accounts 71

6.1 Finance and Accounts

6.2 Revenue Earned by the Commission

7. FOR/FOIR/Other Meetings/Programmes 75

7.1 Meetings of the Forum of Regulator (FOR) and Forum of Indian Regulator (FOIR)

7.2 Capacity Building Programme

8 Important issues 79

8.1 Important issues which remained pending with the Department/Utility

9. Annexures 83


LIST OF ABBREVIATIONS

AAD Advance Against Depreciation

AFC Annual Fixed Charges

APR Annual Performance Review

ARR Aggregate Revenue Requirement

AT&C Aggregate Technical & Commercial Losses

BEE Bureau of Energy Efficiency

BOD Board of Directors

CEA Central Electricity Authority

CERC Central Electricity Regulatory Commission

CGRF Consumer Grievances Redressal Forum

C&S Commercial & Survey

CTU Central Transmission Utility

CT Current Transformers

CVPPP Chenab Valley Power Projects Pvt. Limited

DBMS Database Management System

DC(P) Development Commissioner (Power)

DPR Detailed Project Report

DSM Demand Side Management

DT Distribution Transformer

ECI Election Commission of India

EM&RE Electric Maintenance & Rural Electrification

FAR Fixed Assets Register

FCIK Federation of Commerce Industries Kashmir

FOR Forum of Regulators

FOIR Forum of Indian Regulators

GAD General Administration Department

GFA Gross Fixed Assets

GIS Geographic Information System


GIS Gas Insulated Sub-station

GoI Government of India

GoJK Government of Jammu & Kashmir

HEP Hydro Electric Project

HP Horse Power

HT High Tension

IIT Indian Institute of Technology

IMPA Institute of Management and Personnel Administration

JAKEDA Jammu & Kashmir Energy Development Agency

JKPDD Jammu & Kashmir Power Development Department

JKPDD-T Jammu & Kashmir Power Development Department-Transmission

JKPDD-D Jammu & Kashmir Power Development Department-Distribution

JKSERC Jammu & Kashmir State Electricity Regulatory Commission

JKSWRRA Jammu & Kashmir State Water Resources Regulatory Authority

JKSPDC Jammu & Kashmir State Power Development Corporation

KREDA Kargil Renewable Energy Development Agency

kVAh Kilo Volt Ampere Hrs

kWH Kilo Walt Hrs

LREDA Ladakh Renewable Energy Development Agency

LT Low Tension

MoP Ministry of Power

MU Millions Units

MYT Multi Year Tariff

NABL National Accreditation Board for Testing & Calibration Laboratories

NAD Need Assessment Document

NHPC National Hydro Power Corporation

O&M Operation & Maintenance

PFC Power Finance Corporation

PGCIL Power Grid Corporation of India Limited


PWD Public Work Department

RAPDRP Restructured Accelerated Power Development & Reforms Programme

RE Renewable Energy

RES Renewable Energy Sources

ROE Return on Equity

RPO Renewable Purchase Obligation

SAC State Advisory Committee

SERC State Electricity Regulatory Commission

SMVDU Shri Mata Vaishno Devi University

S&O System & Operation

ToD Time of Day

T&D Transmission & Distribution

USHP Upper Sindh Hydel Project

VLDS Voluntary Load Disclosure Scheme



1

THE COMMISSION



1. THE COMMISSION

1.1 INTRODUCTION

The Concept of independent Regulatory Commissions for the electricity sector

in India Started in 1990s when National Development Council (NDC) committee

on power recommended in 1994, constitution of independent Professional Tariff

Boards at regional level for regulating tariff policies of the public and private

utilities. The basic objective was that the Tariff Boards will be able to bring

along with them a high degree of professionalism in the matter of evolving

electricity tariff appropriate to each region and each State.

The Common Minimum National Action Plan for power evolved in the Chief

Minister’s conference held in 1996, interalia, emphasized that reforms and

restructuring of the State Electricity Boards are urgent and must be carried out

in definite time frame, and identified creation of Regulatory Commissions as a

step in this direction. This paved way for enactment of Central Electricity

Regulatory Commission (ERC) Act 1998 and creation of Electricity Regulatory

Commission at the Centre and the States. The Central ERC Act, 1998 was

enacted with the main objective of distancing Government from tariff

determination. Under the provisions of the ERC Act,1998, the Central

Government Constituted Central Electricity Regulatory Commission (CERC) in

July, 1998 and states followed the suit. The ERC Act,1998 was replaced by

the Central Electricity Act, 2003.


As the Central Electricity Regulatory Commission Act 1998 was not applicable

to J&K, the State legislature enacted its own, ‘The Jammu & Kashmir State

Electricity Regulatory Commission Act, 2000’ (Act No. VIII of 2000) to provide

for the establishment of a State Electricity Regulatory Commission. This was

done as an important power reforms measure for the purpose of distancing the

State Govt. from tariff determination and for monitoring the power reforms

programme in the State. The Act though notified on April 11, 2000 in the

Government Gazette, came into force on 01.05.2002 and the State Electricity

Regulatory Commission was established by the Government through a

notification dated 01.07.2002, published in the Government Gazette. The

Commission started functioning with the appointment of a Chairman and on his

assumption of charge on 23.06.2004.

1.2 THE JAMMU & KASHMIR ELECTRICITY ACT, 2010

As the Central Electricity Act, 2003 is not applicable to J&K State, the State

legislature enacted it own J&K Electricity Act, 2010 on the lines of the Central

Act. With the enactment of the J&K Electricity Act, 2010, which came into

force w.e.f. April 29, 2010 on its notification in the State Govt. Gazette, the

Jammu & Kashmir State Electricity Regulatory Commission Act, 2000, was

repealed. Thereafter, the functioning of the Commission came to be regulated

under the provisions of the new Act. The Jammu & Kashmir Electricity Act,

2010 was enacted to consolidate the laws relating to generation, transmission,

distribution, trading and use of electricity and generally for taking measures

conducive to development of electricity industry, promoting competition therein,

protecting the interest of consumers and supply of electricity to all areas,

rationalization of electricity tariff, ensuring transparent policies regarding

subsidies, promotion of efficient and environmentally benign policies,


constitution of State Electricity Regulatory Commission and matters connected

therewith or incidental thereto.

1.3 ORGANIZATIONAL SET UP OF THE COMMISSION

The Commission is a body corporate, having perpetual succession and

common seal, with power to acquire, hold and dispose of property, both

movable and immovable and to contract and shall, by the said name, sue or

be sued.

The Commission consists of a chairperson and two members, who are

appointed by the Government from a panel recommended by the selection

committee constituted by the Government under Section 66 of the Act.

Section 65 of the Act prescribes that the chairperson and members shall be

person of ability, integrity and standing, who have adequate knowledge of, or

experience in, or have shown capacity in dealing with problems relating to

engineering, commerce, economics, law or management.

Shri. K.B.Pillai, IAS (Retd.) was the first Chairperson of the Commission who

functioned as such from June 23, 2004 till he demitted office on May 21, 2009

on attaining the age of 65 years. Shri. S.M.Desalphine, IAS (Retd.) was

appointed as Chairperson of the Commission by the Government vide Govt.

Order No.: 231-PDD of 2009 dated 30.10.2009. He assumed charge as the

(second) chairperson of the Commission on 16 November, 2009 and continued

to function as such till he demitted the office on 02.05.2014 on attaining the

age of 65 years. Shri. Basharat Ahmed Dhar, I.A.S (Retd.) was appointed

(third) Chairperson of the Commission vide Govt. Order No.: 198-PDD of 2013

Dated: 16.08.2013. He was administered oath as Chairperson of Commission

on 20.08.2013. Shri. D.S.Pawar, Chief Engineer, PDD (Retd.) was appointed

Member (Technical) by the State Govt. vide Order No. 231-PDD of 2009

dated: 30.10.2009 and demitted the office on June 26, 2014 on attaining the

age of 65 years, Shri. G.M.Khan, FA & CAO (Retd.) who joined the


Commission on 01.03.2010 as Member (Finance) continued as such till he

demitted the office on completion of 5 years term on February 28, 2015.

The vacancies caused due to demitting of office by the Hon’ble Members as

mentioned above have not been filled till the end of March, 2015.

1.4 OFFICE OF THE COMMISSION

The Commission is a move office, which moves with Darbar from Jammu to

Srinagar during the summer months and from Srinagar to Jammu during the

winter season. The Commission operates at Jammu from its own complex at

Ambedkar (Panama) Chowk, since March 8, 2011. At Srinagar, the

Commission functions in a rented private building at H.No. 101, Sector-A,

Bagh-I-Hyder, Hyderpora Chowk as it does not have its own office complex.

The Commission plans to construct its own office building at Srinagar jointly

with J&K State Water Resources Regulatory Authority (SWRRA) which is also

functioning from a private rented building at present. For this purpose, one

piece of land belonging to J&K Industries Ltd. has been identified jointly with

the J&K State Water Resources Regulatory Authority at Pampore. During the

FY 2013-14 the Govt. allotted an amount of Rs. 75.00 lacs for purchase of

the said land at Pampore. The same has been kept under Civil Deposit as

per the approval conveyed by the Finance Department vide No. FD-VII-06

(117) 2005-06 dated 28.03.2014 as formal Government sanction for allotment

of land from J&K Industries Ltd. is awaited from Industries & Commerce

Department.


2

HUMAN RESOURCES OF THE COMMISSION



2.1 HUMAN RESOURCES

By virtue of Govt. Order No. 127-PDD of 2005 dated 20.04.2005 read with

Govt. Order No. 135-PDD of 2011 dated 20.04.2011, following nucleolus staff

was provided to the Commission to enable it to start functioning:-

S.No. Nomenclature of the Post No. of posts sanctioned

1 Addl. Secretary (Secretary to the Commission) 01

2 Superintending Engineer 01

3 Deputy Secretary Law 01

4 Accounts Officer 01

5 Private Secretary (for Chairman) 01

6 Steno-cum-Computer Operator (for Secretary) 01

7 Computer Operator (for Office) 01

8 Receptionist-cum-telephone Operator 01

9 Junior Assistant 01

10 Librarian 01

11 Jr. Scale Stenographer (one for Chairman, two for

Members and one for Tech. Consultant)

04

12 Senior Assistant 01

13 Driver 01

In order to ensure growth of the Commission as a professional body to

discharge the assigned duties and functions, the Commission has worked out

its minimum requirement of staff. Accordingly, creation of the additional staff

was proposed to the Govt. in November, 2013. Approval of the Govt. to the

proposal is awaited.

Officers/Officials of the Commission

The officers/officials of the Commission are generally posted on deputation

basis by the Government.


The following officers/officials were working in the Commission during the

period under report:

S.No. Name of the Employee Designation

1 Sh. Abdul Hamid KAS (on deputation by

GAD) Secretary

2 Sh R.K.Seli (Contractual) Technical Consultant

3 Sh V.K.Sarngal (From JKPDD) Supdtt. Engineer (Electric)

4 Smt. Villy Koul (From Law Deptt.) Dy. Secretary Law

5 Sh R.K.Sharma (From Finance Deptt.) Accounts Officer

6 Sh Ab. Hamid Baba (Deputed by GAD) Pvt. Secretary

7 Smt. Poonam Rani (Contractual) Steno-cum-Computer Operator

8 Sh Babu Ram (Contractual) Computer Operator

9 Sh K.K.Pandita (From JKPDD) Junior Assistant

10 Smt. Nelofar Jan (Deputed by GAD) Head Assistant (Against the post

of Librarian)

11 Smt. Shafiqa Akhtar (Deputed by GAD) Senior Assistant (Against the post

of Junior Scale Stenographer)

12 Sh Ab. Gani Kotay (Deputed by GAD) Senior Assistant

13 Sh Girdhari Lal (From JKPDD) Driver

Services of some officials from the Migrant Cell/JKSPDC/JKPDD are provided

to the Commission from time to time on a temporary basis to meet shortage

of staff.

The following posts sanctioned by the Govt. remained vacant during the period

under report:-

Nomenclature No. of Posts

1. Jr. Scale Stenographer 3

2. Receptionist-cum-telephone Operator 1

Organizational structure of JKSERC is given at Annexure-I.


3

FUNCTIONS OF THE COMMISSION



3.1 FUNCTIONS OF THE COMMISSION

As per the provisions of Section 71 of Jammu & Kashmir Electricity Act, 2010,

the Commission is vested with the responsibility of discharging the following

functions:-

(a) determine the tariff for generation, supply, transmission and wheeling of

electricity, wholesale, bulk or retail, as the case may be, within the

State:

Provided that where open access has been permitted to a

category of consumers under section 36, the Commission shall

determine only the wheeling charges and surcharges thereon, if any, for

the said category of consumers;

(b) regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured from

the generating companies or licensees or from other sources through

agreements for purchase of power for distribution and supply within the

State;

(c) facilitate Intra-State transmission and wheeling of electricity;

(d) issue licenses to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their

operations within the State;

(e) promote co-generation and generation of electricity from renewable

sources of energy by providing suitable measures for connectivity with

the grid and sale of electricity to any person , and also specify for

purchase of electricity from such sources, a percentage of total

consumption of electricity in the area of a distribution licensee;

(f) adjudicate upon the disputes between the licensees and generating

companies and to refer any dispute for arbitration;


(g) levy fee for the purposes of the Act;

(h) specify State Grid Code consistent with the Grid Code specified under

the Electricity Act, 2003 (Central);

(i) specify or enforce standards with respect to quality, continuity and

reliability of Service by licensees;

(j) fix the trading margin in the Intra-State trading of electricity, if

considered, necessary;

(k) discharge such other functions as may be assigned to it under the Act.

Section 71(2) of the Act also provides that the Commission shall advise the

Government on all or any of the following matters namely:-

(i) promotion of competition, efficiency and economy in activities of the

electricity industry;

(ii) promotion of investment in electricity industry ;

(iii) reorganization and restructuring of electricity industry in the State ;

(iv) matters concerning generation, transmission, distribution and trading of

electricity or any other matter referred to the Commission by the

Government.


4

STATE ADVISORY COMMITTEE



4.1 STATE ADVISORY COMMITTEE

As per the provision of Section 68 of J&K State Electricity Act, 2010 the

Commission is required to establish a committee to be known as State

Advisory Committee. The committee shall consist of not more than eleven

members excluding the ex officio members to represent the interests of

commerce, industry, transport, agriculture, labour, consumers, non-government

organizations and academic and research bodies in the electricity sector.

As per the provision of the Section 72 of J&K State Electricity Act,

2010, State Advisory Committee is to advise the Commission on:

i) Major questions of policy;

ii) Matters relating to quality, continuity and extent of service provided by the

utility/ licenses;

iii) Compliance by the licensees with the conditions and requirements of their

licenses;

iv) Protection of consumer’s interest; and

v) Electricity supply and overall standards of performance by the utilities.

The composition of the State Advisory Committee during the period under report was

as under:-

Members of the Advisory Committee

1. Chairperson of the Commission - Chairperson Ex-officio

2. Member (Technical)- Member Ex-officio

3. Member (Finance) - Member Ex-officio

4. Secretary, Consumer Affairs and Public Distribution Department, Govt. of

Jammu & Kashmir- Member Ex-officio

5. Transport Commissioner, Govt. of Jammu & Kashmir (Member).

6. Dr. Aijaz Ahmad, Professor, Department of Electrical Engineering National

Institute of Technology, Srinagar. (Member)


7. Sh. Jigmat Takpa, Director, Ladakh Renewable Energy Development

Agency, Leh. (Member)

8. Director, Agriculture Department, Srinagar /Jammu. (Member).

9. Sh. Mohd. Ashraf Mir, President, Federation Chamber of Industries

Kashmir (FCIK). (Member)

10. Shri. Rakesh Gupta, President, Chamber of Commerce and Industries,

Jammu (Member).

11. Sh. Sheikh Ashiq Ahmad, President, Kashmir Chamber of Commerce

and Industry, Srinagar. (Member)

12. Shri. Annil Suri, President, Bari- Brahmana Industries Association,

Jammu. (Member)

13. Shri. Vikram Gour, Member, State Consumer Protection Council. (Member)

14. Major General (Retd.) Goverdhan Singh Jamwal, President, J&K Ex-

Service League H.O Amphalla. (Member)

15. Sh. Shakeel Qalander Consumer/entrepreneur (Member)

Secretary to the Commission functions as the Secretary of the

Committee.


5

ACTIVITIES OF THE COMMISSION



5. ACTIVITIES OF THE COMMISSION

In pursuance of the power conferred upon the Commission under the

provisions of J&K State Electricity Regulatory Commission Act, 2000/ J&K State

Electricity Act, 2010, the Commission has successfully notified regulations to carry

out the provisions of the Act covering various aspect of the power sector in the

State. These regulations are being updated constantly on need basis and in

accordance with the changing scenario. The details of the regulations issued by the

Commission are as under:-

1. J&KSERC (Conduct of Business) Regulations, 2005.

2. J&KSERC (Terms and Conditions for Determination of Distribution Tariff)

Regulations,2005.

3. J&KSERC (Appointment of Consultants) Regulations, 2005.

4. J&KSERC (Power Purchase and Procurement) Regulations, 2005.

5. J&KSERC (Terms and Conditions for Determination of Hydro Generation Tariff)

Regulations, 2005.

6. J&KSERC Notification dated 07.12.2005 (Terms and Conditions for Determining

of Hydro Generation Tariff), 2005.

7. J&KSERC (Open Access in Intra-State Transmission and Distribution)

Regulations, 2006.

8. J&KSERC Notification dated 10.05.2006 (Terms and Conditions for Determining

Hydro Generation Tariff).

9. J&KSERC (Distribution Performance Standards) Regulations, 2006.

10. J&KSERC Notifiation No. 1 of 2007 dated 03.10.2007 (Open Access in Intra-

State Transmission and Distribution).

11. J&KSERC (J&K State Electricity Grid Code) Regulations, 2007.

12. J&KSERC (Security Deposit) Regulations, 2008.


13. J&KSERC Notification No. 1 of 2008 dated 08.12.2008 (Open Access in Intra-


14. J&KSERC (Consolidated Amendment) Regulations, 2008.

15. J&KSERC (Amendment of Security Deposit) Regulations, 2009.

16. J&KSERC Notification No. 13 of 2009 dated 18.12.2009 (Open Access in Intra-


17. J&KSERC (Electricity Ombudsman) Regulations, 2010

18. J&KSERC Notification No. 1 of 2010 dated 24.02.2010 (Hydro Generation

Tariff).

19. J&KSERC (Guidelines for Establishment of Forum for Redressal of Grievances

of Consumers) Regulations, 2010.

20. J&KSERC (Renewable Power Purchase Obligation, its Compliance and REC

Framework Implementation) Regulations, 2011.

21. J&KSERC (Terms & Condition for Determination of Hydro Generation Tariff)

Regulations, 2011.

22. J&KSERC (Terms & Condition for Determination of Distribution Tariff)

Regulations, 2011.

23. J&KSERC (Terms & Condition for Determination of Hydro Generation Tariff)

Regulations, 2011 (1MW to 25MW).

24. J&KSERC (Consolidated Amendment) Regulations, 2011.

25. J&KSERC (Supply Code) Regulations, 2011.

26. J&KSERC (Demand Side Management) Regulations, 2011.

27 J&KSERC (Consumer Grievance Redressal Forum, Ombudsman and Consumer

Advocacy) Regulations, 2012.

28. J&KSERC (Multi Year Distribution Tariff) Regulations, 2012.


29. J&KSERC (Terms and Conditions for Determination of Transmission Tariff)

Regulations, 2012.

30. J&KSERC (Distribution Code) Regulations, 2012.

31. J&KSERC (Compliance Audit) Regulations, 2012.

32. J&KSERC (Terms & Conditions for Tariff Determination from Renewable

Energy Sources) Regulations, 2013.

33. J&KSERC (Consolidated Amendments) (Terms and Conditions for Transmission

Tariff) Regulations, 2013.

34. J&KSERC Notification of fee for filing of appeals before the Appellate Authority

under Section 87 of the Act.

35. J&KSERC (Licensing) Regulations, 2013.

5.1 ORDERS/REPORTS ISSUED BY THE COMMISSION DURING FY 2014-15

During the Financial Year 2014-15 the Jammu & Kashmir State Electricity

Regulatory Commission issued the following Regulations/Notifications:-

i) Notification under RPO Regulation:-

Jammu & Kashmir State Electricity Regulatory Commission vide notification

No.:JKSERC/40 of 2014 dated 05.09.2014 designated J&K State Power

Development Corporation as the State Agency for accreditation and

recommending Renewable Energy Projects in the State for registration.

ii) Notification for charges for Open Access customers:-

The Open Access charges for Open Access customers for FY 2014-15 were

notified vide Notification No. JKSERC/38 of 2014 dated; 10.07.2014.


iii) Annual Report for FY 2013-14 was submitted to Government Vide No.

JKSERC/Secy/906 dated 26.08.2014 for placing the same before the State

Legislature.

5.2 TARIFF ORDERS

The Commission since its inception has been regularly issuing the tariff orders

in respect of generation projects owned by Jammu & Kashmir State Power

Development Corporation, Transmission segment of Power Development

Department and also the Retail Tariff orders of Distribution segment of Power

Development Department. The number of tariff orders issued by the

Commission till 2013-14 are indicated below:-

1. Generation Tariff Orders:-

i) Seven (7) Tariff Orders pertaining to JKPDC power houses.

ii) One (1) Order on adoption of tariff for purchase of power from

Ratle Hydel Project determined through bidding process.

iii) Two (2) Tariff Orders of 2010 for Solar and Wind Energy.

iv) One (1) Generic Levellised Tariff for FY 2014-15 from Renewable

Energy Sources.

2. Transmission:- Two (2) Tariff Orders for Transmission tariff were issued

by the Commission till 2013-14.

3. Retail Tariff: - Eight (8) Retail Tariff Orders of Distribution segment of

power were issued by the Commission till 2013-14 besides approval to

Business Plan for MYT period 2013-14 to 2015-16.


5.3 DETAILS OF TARIFF ORDERS ISSUED DURING THE YEAR 2014-15

The Commission issued the following Tariff related Orders during the year:-

1. Order on Annual Performance Review for FY 2013-14 and Determination of

ARR and Tariff for FY 2014-15 for Power Development Department-

(Distribution).

2. Order on Annual Performance Review for FY 2013-14 and Transmission

Tariff for FY 2014-15 for Power Development Department- (Transmission).

3. Order on Generic Levellised Generation Tariff for Renewable Energy

Sources (RES) for FY 2014-15.

4. Order on Annual Performance Review for FY 2014-15 and Transmission

Tariff for FY 2015-16 for Power Development Department- (Transmission).

5. Order on Determination of Annual Fixed Charges and Tariff for FY 2015-16

for J&K State Power Development Corporation Ltd. (Generation Utility of

the State).

6. Order in the matter of Determination of Generic Levellised Generation for

Renewable Energy Sources for FY 2015-16.

The petition for true-up for FY 2013-14, APR for FY 2014-15 and the tariff

petition for FY 2015-16 for Distribution function of the PDD was due for

submission by 30th of November, 2014. The Utility, however, submitted the

Petition on 08.02.2015 which was found to be deficient in many respects.

Also as the petitioner did not have any tariff proposal for the FY 2015-16,

the petition was returned to PDD-Distribution with the direction to resubmit

the petition, complete in all respects. Till 31.03.2015, no petition was

received from PDD-Distribution. However, on the request of the Utility, the

Commission extended the validity of the tariff order of PDD-D for FY 2014-

15 upto ending July, 2015. The Utility finally submitted the Petition on

08.05.2015.


5.3.1 Procedures & Process of tariff determination

The procedure followed by the Commission for determination of Tariff is as

follows:-

- Petitions/Applications by the Generation, Distribution & Transmission Utilities

are filed before the Commission Primarily for Annual Performance Review

(APR) for current year and Annual Revenue Requirement (ARR) and Tariff

Revision Proposal for Next Financial Year.

- Apart from the above, suo-moto Petitions like that for determination of Generic

Tariff for RE Sources, are also processed by the Commission in the sequence

as shown in the chart below:-

Filing of Petition before

Commission for APR,

ARR Tariff Revision

Proposal

Holding of Technical Validation

Session with the Petitioner for

discussion on ARR &

consideration of replies submitted

by the Petitioner on queries

raised by Commission, followed

by admission of the petition.

Publication of Gist of the Petition

as Public Notice to invite

comments/objections/suggestions

from the stakeholders including

consumers.

Meeting of the State

Advisory Committee

Public Hearing by the

Commission in Jammu

& Srinagar

Notification &

Publication of tariff

order


Besides Tariff Petitions the Commission also adjudicates upon other petitions

like:

i) Consumer applications/complaints.

ii) Miscellaneous petitions.

iii) Review petitions.

5.4 ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2013-14 AND TARIFF

REVISION PROPOSAL FOR FY 2014-15 FOR JKPDD-DISTRIBUTION.

The Commission shifted to Multi Year Tariff regime in the Distribution Business

in line with Section 55 of Act in order to bring efficiency and reliability in the

Power Sector of the State.

1. As per sub-Regulation (4) of Regulation 47 of JKSERC (Conduct of

Business) Regulations, 2005 and Sub-Regulation (2) of Regulation 12 of

JKSERC (Multi Year Distribution Tariff) Regulations, 2012, the Petitioner

was required to file the petition for Annual Performance Review (APR) for

FY 2013-14 to assess the performance vis-à-vis the target approved by the

Commission at the beginning of the Control period and Tariff proposal for

FY 2014-15 by November 30, 2013.

2. There was delay in filing of the APR petition by JKPDD-D. The

Development Commissioner (Power) JKPDD filed a Petition No. JKSERC/38

of 2013 before the Commission on November 27, 2013 seeking an

extension in date of filing of tariff petition up to January 30, 2014 on the

grounds of inadequate response to the tenders floated by the Petitioner for

engagement of consultants to assist the Utility in preparing and filing of the

APR/Tariff Petition before the Commission.

3. On the assurance of the Petitioner that they are in the process of engaging

a consultant in response to a fresh tender notice floated by them, the

Commission, vide its Order No. JKSERC/30 of 2013 dated December 6,

2013 granted extension of filing the Petition by or before December 31,

2013.


4. The Petitioner failed to submit the Petition for APR for FY 2013-14 and

Tariff for FY 2014-15 by the stipulated (revised) date as specified in the

Commission’s Order dated December 6, 2013. The Commission, vide its

Letter No. JKSERC/ Secy/ 33/ 1294-95 dated January 16, 2014 again

reminded the Petitioner to take necessary action and file the APR/ Tariff

Petition. Thereafter, the Commission issued a final notice to the

Development Commissioner (Power), JKPDD vide its Letter No

JKSERC/Secy/33/1437 dated February 6, 2014 stating that in case the

Utility fails to submit the Petition, the Commission shall be left with no

option but to initiate suo-moto proceedings as envisaged under the relevant

regulations.

5. The Petitioner ultimately filed the Petition for APR for FY 2013-14 and tariff

revision proposal for FY 2014-15 for its distribution business on February

17, 2014. On detailed analysis of the Petition, the Commission observed

several information gaps and discrepancies in the Petition for which

additional information was sought from the Petitioner vide Commission’s

Letter No. JKSERC/Secy/33/1508-12 dated February 21, 2014.

6. The Petitioner submitted the revised petition on February 28, 2014 and the

Commission admitted the petition on the same day after the Petitioner

made a presentation before the Commission. The Commission also imposed

a fine of Rs 0.10 Lakhs on the Utility for delayed submission of the

Petitions by invoking Section 102 of the Act.

7. The Commission vide its letter No. JKSERC/Secy/1565-66 dated February

28, 2014 directed the Petitioner to publish the gist of the APR petition for

the FY 2013-14 and Tariff proposal for FY 2014-15 as public notice and

invite comments/ objections/ suggestions from the stakeholders.

8. The process of holding public proceedings as required under the relevant

regulations could not move ahead in view of 16th Lok Sabha elections and

imposition of Model Code of Conduct w.e.f. March 5, 2014. In fact, the


Commission was prevented to move ahead in this matter vide the Election

Commission of India’s (ECI) communication no. 437/6/MISC/2014-CC &

BE/322 dated February 17, 2014, in which, inter-alia, it was mentioned in

unambiguous terms that once Model Code of Conduct is imposed for the

forthcoming Lok Sabha Elections, it shall be applicable to the Electricity

Regulatory Commissions also.

The Central Electricity Regulatory Commission (CERC) and some State

Electricity Regulatory Commissions (SERCs) including JKSERC approached

Election Commission of India (ECI) for relaxation. Ultimately, ECI vide

communication no: 437/6/1/2014-CC&BE dated March 29, 2014 conveyed

that the Commission has no objection in the continuance of the process

required for the decision on the power tariff. However, tariff award shall be

made only on the completion of polling in the relevant state i.e. after the

poll date / dates in that State. The JKSERC immediately on receipt of the

clarification notified a time schedule for public hearings at Jammu and

Srinagar on the APR and Tariff Petitions for distribution and transmission

business of the JKPDD for FY 2013-14 and FY 2014-15.

In view of the communication dated 29.03.2014 of Election Commission of

India, the Commission was not in a position to issue any tariff order for

the year 2014-15 till the completion of the Lok Sabha Election in the State.

Therefore, the Commission in exercise of powers conferred under the J&K

Electricity Act, 2010 issued orders that the Retail Tariff for FY 2013-14,

issued by the Commission vide order No.: JKSERC/135 of 2013 dated

25.04.2013, shall remain valid from April 1, 2014 onwards unless it is

amended or modified or till notification of the new tariff order for FY 2014-

15 by the Commission.


5.4.1 Meeting of the State Advisory Committee on Tariff Petition (Distribution)

The Commission convened a meeting with the Members of the State Advisory

Committee (SAC) on April 22, 2014 for the purpose of discussing the APR

Petition for FY 2013-14 and Tariff Revision Petition for FY 2014-15 filed by the

JKPDD-D.

The representatives from the JKPDD-D made a detailed presentation on the

Annual Performance Review for FY 2013-14 and Tariff proposal for

FY 2014-15.

Some of the key points raised and discussed by the Committee have been

summarized below:

(a) The proposal for no hike of the tariff for the FY 2014-15 may be

considered by the Commission with the directions to the Utility to

concentrate on adoption of various loss reduction measures like metering

besides bringing in efficiency in billing and revenue collection to reduce

AT&C losses.

(b) The Utility should focus on metering as the top most priority in order to

check wastage of power.

(a) The discrepancy in the numbers shown in the presentation and the

numbers submitted as part of the reply to Objections on the Tariff

Petition were pointed out for rectification.

(b) Adequate headway towards DSM and energy efficiency measures is not

happening. Further, the proposal of the Utility for imposition of penalty

for the use of incandescent lamps was not supported as it would

promote ‘Inspector Raj’. Thus, it was suggested that awareness

programs and seminars should be conducted by the JKPDD on


promotion of energy conservation in terms of the provisions of the J&K

Energy Conservation Act 2011 and in line with programs supported by

Bureau of Energy Efficiency (BEE), Government of India.

(c) No Consumer Grievance Redressal Forum (CGRF), Ombudsman and

also Tariff policy exists in the State. Setting up of these institutions and

formulation of tariff policy are mandatory under the Act.

(d) KVAh billing may be considered by the Commission in phased manner

after necessary infrastructure facilities like compliant metering and

capacitors for switching over are in place.

(e) The projection for collection efficiency shown as 100% by the JKPDD

was questioned in view of huge gap between the amount billed and the

amount realized. The Utility was directed to rectify the anomaly so as to

have a correct picture of its functioning. It was suggested that arrears

should be indicated separately in the Petition.

(f) Appropriate load forecasting and network planning studies should be

carried out by the Utility to facilitate prudent planning of the transmission

and distribution network in a phased manner in order of priority in

accordance with the availability of funds.

(g) The services of technical institutions in the State should also be utilized

for training programs and third party meter testing.

(h) The Commission directed that the JKPDD shall arrange an authority

letter from the State Government regarding the approved budgetary

provision for power purchase and the subsidy commitment for FY 2014-

15. The JKPDD has also to comply with RPO as per the regulations.


(i) The revision in the miscellaneous charges proposed by the utility is

excessive and the Commission may allow only reasonable hike keeping

in view the increase in inflation.

(j) Rationalization of flat rate categories for domestic un metered category

with load above 1 KW up to 2 KW as proposed by the Utility may be

considered by the Commission.

Several other points were also raised and discussed during the SAC meeting,

which also have been noted by the Commission and suggestions made by the

members of the Committee on above-mentioned points and other points

discussed were duly considered by the Commission while issuing the final

Order.


In order to maintain transparency in the tariff setting process, the Commission

involved the stakeholders by initiating a public consultation process to

understand their views on various aspects of the APR for FY 2013-14

and the Tariff Revision proposal for FY 2014-15 filed by the Petitioner.

Accordingly, the Public hearings were held at Jammu and Srinagar as per the

details provided below:

Details of Public Hearings

Place/ city Date Location

Srinagar May 24, 2014 IMPA , Moulana Azad Road

Jammu May 29, 2014 PWD Guest House, Gandhi Nagar


The Commission also invited various industrial organization and consumer

bodies to take part in the process of tariff determination and represent the

interests of the consumers. The comments/ objections/ suggestions received

during the hearings were duly considered while finalizing the Order.

Based on the various components, the summary of ARR for the FY 2014-15

as submitted by the petitioner and as approved by the Commission is

indicated in the following table:-

Particulars

FY 2014-15 (Rs. cr.)

Submitted by

Petitioner

Approved by

Commission

Power Purchase Cost 4,011.43 3,900.88

Water usage charges (JKSPDC+NHPC). 505.65 436.20

Intra-state transmission Charges 128.11 113.49

Operation and Maintenance Cost 556.24 504.76

Interest on loans 18.16 17.15

Depreciation 40.28 7.24

Interest on Working capital 58.97 58.02

Total Costs 5,318.77 5,037.75

Add: Return on Equity 0.00 0.00

Less: Non-Tariff Income 14.80 14.80

Aggregate Revenue Requirement 5,303.97 5,022.96

Based on the revenue realization calculated as per the energy sales and

cost per unit approved in this Order, the revenue gap approved for

FY 2014-15 works out to Rs. 2,922.85 Cr. as summarized in the following

table:

S.

No Description

Approved in

MYT Order

Submitted by

Petitioner

Approved by

Commission

1 Aggregate Revenue Requirement. 4150.44 5,303.97 5,022.96

2 Revenue Assessed 1825.72 1,900.01 2,100.11

3 Revenue Gap 2324.72 3,403.96 2,922.85


5.4.3 Directives

The Commission had issued a number of directives to the PDD through Tariff

Orders, but the Commission was not satisfied with the progress and reporting

being done by the PDD. The gist of the directives issued and the status of

the compliance reported by Utility together with observations of Commission

thereon are indicated in Annexure-II to this report.

5.5 PETITION FOR ANNUAL PERFORMANCE REVIEW FY 2013-14 AND

TRANSMISSION TARIFF FOR FY 2014-15 FOR JKPDD-TRANSMISSION.

JKPDD, viz. Power Development Department (PDD), Government of Jammu &

Kashmir is the sole transmission and distribution utility in the State of Jammu

and Kashmir.

The Government of Jammu & Kashmir, vide Order No. 264 PDD of 2012

dated September 5, 2012, has ordered for unbundling of JKPDD and setting

up of one transmission company, two distribution companies (one each for

Jammu and Kashmir divisions) and one trading company with the function of a

holding company. In line with the above order, GoJK has ordered for setting

up of the following companies vide Order No. 285 PDD of 2012 dated

September 21, 2012:

[

a) Jammu & Kashmir State Power Transmission Company Limited

b) Jammu & Kashmir State Power Trading Company Limited

c) Jammu Power Distribution Company Limited

d) Kashmir Power Distribution Company Limited

As the process of unbundling is still under progress, JKPDD-T filed the petition

for approval of Annual Performance Review for its Transmission under the


provisions of the J&KSERC (Terms and Conditions for Determination of

Transmission Tariff) Regulations, 2012 and J&KSERC (Conduct of Business)

Regulations, 2005.

As per the sub Regulation (3.7.1) of Regulation 3.7 of JKSERC (Terms and

Conditions for Determination of Transmission Tariff) Regulations, 2012, the

Petitioner was required to submit the Annual Performance Review (APR) for

FY 2013-14 to assess the performance vis-à-vis the target approved by the

Commission at the beginning of the Control by November 30, 2013.

There was delay in filing of the APR petition by JKPDD-T. The Development

Commissioner (Power) JKPDD filed a Petition No. JKSERC/38 of 2013 before

the Commission on November 27, 2013 seeking an extension in date of filing

of tariff petition upto January 30, 2014 on the ground of inadequate response

to the tenders floated by the Petitioner for engagement of consultants to assist

the Utility in preparing and filing of the APR/Tariff Petition before the

Commission.

On the assurance of the Petitioner that they are in the process of engaging a

consultant in response to a fresh tender notice floated by them, the

Commission, vide its Order No.: JKSERC/30 of 2013 dated: December 6, 2013

granted extension of filing the Petition by or before December 31, 2013.

The Petitioner failed to submit the petition for APR for FY 2013-14 and tariff

revision for FY 2014-15 by December 31, 2013. The Commission, vide its

Letter No. JKSERC/Secy/33/1294-95 dated January 16, 2014 reminded the

Petitioner to take necessary action and file the APR Petition and thereafter

issued a final notice to the Development Commissioner (Power), JKPDD vide

its Letter No. JKSERC/Secy/33/1437 dated February 6, 2014 for initiating suo-

moto proceedings.


The Petitioner ultimately filed the Petition for APR FY 2013-14 and tariff

revision for FY 2014-15 for its transmission business on February 17, 2014.

On detailed analysis of the Petition, the Commission observed several

information gaps and discrepancies in the Petition for which additional

information was sought from the Petitioner vide Commission’s Letter No.

JKSERC/Secy/33/1508-12 dated February 21, 2014.

The Petitioner submitted the revised petition on February 28, 2014 and the

Commission admitted the petition on the same day after the Petitioner made a

presentation before the Commission.

The Commission vide its letter no. JKSERC/Secy/1567-68 dated February 24,

2014 directed the Petitioner to publish the gist of the petition for APR

FY 2013-14 as public notice and invite comments/ objections/suggestions from

the stakeholders on the above mentioned petitions filed.

The approved gist of the petition filed by JKPDD-T was published by the

Petitioner in several widely read newspapers on March 1, 2014.

The copy of the Petition was also available on the official websites of the

Commission and the Petitioner.

The stakeholders were requested to submit their written comments/

suggestions/ objections latest by March 29, 2014.

As explained at sub-para (8) of para 5.4 above, the process of holding public

proceedings as required under the relevant regulations could not move ahead

in view of the 16th Lok Sabha Elections and imposition of Model Code of

Conduct w.e.f. March 5, 2014.


It was only after Election Commission of India vide communication No:

437/6/1/2014-CC&BE dated March 29, 2014 conveyed that the Commission

has no objection to the continuance of the process required for the decision

on the power tariff. However, tariff award shall be made only on the

completion of polling in the relevant State i.e. after the poll date/dates in that

State. JKSERC immediately on receipt of clarification notified a time schedule

of Public hearings at Jammu and Srinagar, on the Annual Performance

Review(APR) and Tariff Petitions for Distribution and Transmission Business of

JKPDD for FY 2013-14 and FY 2014-15.

5.5.1 Meeting of the State Advisory Committee on Tariff Petition (Transmission)


Committee (SAC) on April 22, 2014 for the purpose of discussing the petition

filed by the JKPDD-T.

The representatives from the JKPDD-T made a detailed presentation on the

petition for Annual Performance Review (APR) for FY 2013-14 and Tariff

revision for FY 2014-15 filed by it.


In order to maintain transparency in the process for approval of the APR

Petition for JKPDD-T, the Commission involved the stakeholders by initiating a

public consultation process to understand their views on various aspects of the

petition filed by JKPDD-T. Accordingly, the public hearings on the APR Petition

filed by JKPDD-T were held at Jammu and Srinagar as per the details

provided in the following table:




Srinagar May 24, 2014 IMPA, Moulana Azad Road

Jammu May 29, 2014 PWD Guest House, Gandhi Nagar

The comments/objections/suggestions received during the SAC meeting and the

public hearings have been considered while issuing the final Order on the

petition for Annual Performance Review FY 2013-14 and Tariff revision for

FY 2014-15.

The Commission analyzed the cost for each of the items of the ARR in detail

in the Order and accordingly approved the revised ARR for FY 2013-14 and

FY 2014-15. The approved Aggregate Revenue Requirement for FY 2013-14

and for FY 2014-15 is given in the table below.

Approved ARR (revised) for FY 2013-14 and FY 2014-15 (Rs. Cr.)

Particulars FY 2013-14 FY 2014-15

O&M Expenses 97.56 107.87


Interest & Finance Charges 0.00 0.00

Interest on Working Capital 5.13 5.62

Return on Equity 0.00 0.00

Total Expenditure 102.69 113.49


Approved Annual Revenue Requirement 102.69 113.49

Based on the approved Aggregate Revenue Requirement, the Commission has

approved transmission charges of Rs 39.57/kW/Month for FY 2014-15

considering transmission capacity of 2390.23MW as submitted by the

Petitioner.


5.5.3 DIRECTIVES

Following directives were issued to the Transmission Utility as a part of

the order for Annual Performance Review FY 2013-14 and Transmission tariff

for FY 2014-15 for JKPDD (Transmission).

I. Capital Expenditure and Capacity Addition Plan

As per the Suo-moto Order dated March 10, 2014 on the Utility’s

plan on capacity addition and augmentation of inter-state and intra-state

transmission system for evacuation, transmission and utilisation of the

generation capacity expected to come up during the 12th and 13th five-

year Plans, the Commission directed the petitioner (JKPDD) as follows:-

a) To complete the system study without further loss of time, taking help

from CEA or any other agency equipped with modern tools. The

detailed proposals supported by system studies should indicate year

wise phasing for implementation, financial estimates and financing

plans along with location wise details matching the load growth.

b) To take immediate steps with regard to the implementation of R-

APDRP (Part B) as its implementation has been inordinately delayed

to the disadvantage of the State.

c) The Principal Secretary, JKPDD to take immediate action towards

constitution of the Task force & Technical Committee for the purpose

of assessment of requirements of power infrastructure in the state

during 12 & 13 plan period based on demand projections and

requirement on account of evacuation & utilization of power from

various ongoing/upcoming projects and also to coordinate the

implementation of plans of all the agencies responsible for

development of generation, transmission & distribution systems in the

state. The progress report shall be submitted to the Commission on

a quarterly basis.


II. Maintenance of Grid Stations

To submit a status report on proper up-keep and

maintenance of transmission lines and grid stations. The

Commission directs the Utility to go for third party audit on the

maintenance and upkeep of all Grid Stations through CEA or

Power Grid Corporation of India Ltd. (PGCIL) or any other

authorised agency. The reports should be sent along with the next

APR to the Commission.

III. Benchmarking of Expenses

To get the benchmarking studies conducted for

determination of O&M expenses and all other expenses such as

R&M expenses, A&G expenses, employees costs etc per kWh

energy transmitted.

5.6 DETERMINATION OF GENERIC LEVELLISED GENERATION TARIFF FOR

RENEWABLE ENERGY SOURCES (RES) FOR FY 2014-15.

1. The Jammu & Kashmir State Electricity Regulatory Commission (hereinafter

referred to as JKSERC or the Commission) has notified the Jammu and

Kashmir State Electricity Regulatory Commission (Terms and Conditions for

Tariff determination from Renewable Energy Sources) Regulations, 2013 on

May 17, 2013 (hereinafter referred to as “the RE Tariff Regulations 2013”)

which provide for terms and conditions and the procedure for determination of

tariff of the following categories of Renewable Energy (RE) generating stations:

a. Wind Power Project;

b. Biomass Power Projects with Rankine Cycle Technology;

c. Non-fossil fuel-based co-generation project;

d. Small Hydro Plants;

e. Solar Photo Voltaic (PV) / Solar Thermal Power Projects;


f. Biomass Gasifier based Power Projects; and

g. Biogas based Power Project.

2. The Regulations enjoin upon the Commission to determine the generic tariff on

the basis of the suo-motu petition, for the RE technologies for which norms

have been provided in the RE Tariff Regulations 2013. Generic Tariff is

different from the project specific tariff for which a project developer has to file

petition before the Commission as per the format provided in the RE Tariff

Regulations 2013. Pertinently, project specific tariff has been envisaged for the

new RE technologies and the technologies which are still at the nascent stage

of development, and the Commission shall determine the project specific tariff

for such technologies on a case to case basis.

3. Clause (1) of Regulation 8 of the RE Tariff Regulations 2013 provides that

“the Commission shall determine the generic tariff on the basis of suo-motu

petition at least six months in advance at the beginning of each year of the

Control period for renewable energy technologies for which norms have been

specified under the Regulations”.

4. The Commission, in due discharge of the mandate under Regulation 8(1) of

RE Tariff Regulations 2013, brought out the proposal in the matter of

determination of the generic tariff for renewable energy technologies for the

year FY 2014-15 vide the suo-motu Petition No. JKSERC/45 of 2014 dated

March 13, 2014.

5. The Commission gave a presentation on the proposed generic tariff for

generation of power from Renewable Energy Sources (RES) for the year FY

2014-15 in a meeting convened with the Members of the State Advisory

Committee (SAC) on April 22, 2014.


6. The SAC Members advised that JKSERC should go ahead with the notification

of the Draft Tariff Order after seeking suggestions/comments from the

stakeholders.

7. In due regard to the Model Code of Conduct imposed by the Election

Commission of India in connection with the 16thLok Sabha Elections, the

Commission published the gist of the suo-motu Petition in several widely read

newspapers of the State in June, 2014.

8. The Petition was also made available on the website of the Commission. The

stakeholders were requested to submit their written comments / suggestions /

objections latest by June 30, 2014. The suggestions made by the members of

the State Advisory Committee and other points discussed were duly considered

while finalizing the order.

5.6.1 Approved generic levellised tariff for RES for FY 2014-15

The approved generic levellised tariff for generation from renewable energy

sources for FY 2014-15 is summarized in the following tables:

Generic Levellised tariff for RE technologies without fuel component for FY 2014-15

Particulars

Levellised

Total

Tariff

(FY 2014-15)

Benefit of

Accelerated

Depreciation (if

availed)

Net Levellised Tariff

(upon adjusting for

Accelerated

Depreciation

benefit) (if availed)

(Rs/kWh) (Rs/kWh) (Rs/kWh)

WIND ENERGY

Wind Zone -1 (CUF 20%) 6.16 0.36 5.80

Wind Zone -2 (CUF 22%) 5.60 0.33 5.27

Wind Zone -3 (CUF 25%) 4.93 0.29 4.64

Wind Zone -4 (CUF 30%) 4.11 0.24 3.87

Wind Zone -5 (CUF 32%) 3.85 0.23 3.62


Particulars

Levellised

Total

Tariff

(FY 2014-15)

Benefit of

Accelerated

Depreciation (if

availed)

Net Levellised Tariff

(upon adjusting for

Accelerated

Depreciation

benefit) (if availed)

(Rs/kWh) (Rs/kWh) (Rs/kWh)

SMALL HYDRO

Capacity below 5 MW 4.30 0.39 3.91

Capacity 5 MW upto 25

MW 3.67 0.35 3.32

SOLAR PV & THERMAL

Solar PV 7.50 0.83 6.67

Solar Thermal 11.55 1.32 10.23

Generic tariff for RE technologies with fuel component for FY 2014-15

Particulars

Levellised

fixed cost

Variable cost

(FY 2014-15)

Applicable

Tariff

(FY 2014-

15)

Benefit of

Accelerated

Depreciation

(if availed)

Net Levellised

Tariff

(upon adjusting

for

Accelerated

Depreciation

benefit,

if availed)

(Rs/kWh) (Rs/kWh) (Rs/kWh) (Rs/kWh) (Rs/kWh)

BIOMASS 2.11 3.73 5.84 0.16 5.68

NON FOSSIL FUEL

BASED COGENERATION 2.48 3.10 5.58 0.22 5.36

BIOMASS GASIFIER 2.34 4.93 7.27 0.14 7.13

BIOGAS 3.04 2.00 5.04 0.35 4.69

5.7 ANNUAL PERFORMANCE REVIEW FOR THE FY 2014-15 AND

TRANSMISSION TARIFF FOR FY 2015-16 FOR JKPDD-TRANSMISSION.

In accordance with the applicable regulations i.e., the J&KSERC (Terms and

Conditions for Determination of Transmission Tariff) Regulations, 2012, the

Petitioner was required to file an application for approval of aggregate revenue


requirement for the Control Period (FY 2013-14 to FY 2015-16) by November

30, 2014 (as per Regulation 3.2 of the said Regulations). JKPDD-T filed the

MYT Petition before the Commission on December 31, 2014. On detailed

analysis of the Petition, the Commission observed several information gaps

and discrepancies in the Petition for which additional information was sought

from the Petitioner vide Commission’s Letter Nos. JKSERC/Secy/23/1449-50

dated January 5, 2015, JKSERC/Secy/23/1481 dated January 12, 2015 and

JKSERC/Secy/1705-06 dated February 17, 2015. The Petitioner submitted its

replies to the discrepancy notes vide Letter No: CE/S&O/J/9367-69

dated January 14, 2015 and CE/S&O/J/10631-32 dated February 24, 2015.

The Commission held a technical validation session with the Petitioner on

January 12, 2015 and took into consideration the supplementary information

provided by the Petitioner during the technical validation session and admitted

the Petition on same day.

The approved gist of the Petition filed by JKPDD-T was published by the

Petitioner in four widely read newspapers on January 14, 15 and 16, 2015. The

stakeholders were requested to submit their written

comments/suggestions/objections latest by January 30, 2015.

5.7.1 Meeting of the State Advisory Committee on tariff petition (Transmission)


Committee (SAC) on February 4, 2015 in Jammu for the purpose of discussing

the Petition filed by the JKPDD-T.


Several points were raised and discussed during the SAC meeting, which have

been noted by the Commission and suggestions made by the members of the

Committee and other points discussed have been considered by the

Commission while issuing the final Order.


In order to maintain transparency in the process for approval of the MYT

Petition for JKPDD-T, the Commission involved the stakeholders by initiating a

public consultation process to understand their views on various aspects with

the public hearing conducted for the MYT petition for FY 2013-14 to

FY 2015-16 filed by the Petitioner. Accordingly, the public hearings on the

MYT Petition filed by JKPDD-T were held at Jammu and Srinagar as per the

details provided in the following table:


Jammu February 7, 2015 Meeting Hall, JKSERC

Srinagar February 10, 2015 IMPA, Moulana Azad Road

The Commission also invited various industrial organizations and consumer

bodies to take part in the process of tariff determination and represent the

interests of the consumers. The comments/ objections/ suggestions received

during the hearings were duly considered while finalizing the Order.

The Commission analyzed the cost for each of the items of the ARR in detail

in the Order and accordingly approved the revised ARR for FY 2014-15 and

FY 2015-16. The approved Annual Revenue Requirement (Revised) for FY

2014-15 and FY 2015-16 (In Rs. Cr.)is given in the table below:






Interest & Finance Charges 2.52 2.43



Total Expenditure 89.37 96.48


Approved Annual Revenue Requirement 89.37 96.48

Based on the approved annual revenue requirement, the Commission

approved transmission charges of Rs 33.64/KW/Month for FY 2015-16

considering transmission capacity of 2390.23 KW as submitted by the

Petitioner.

5.8 TARIFF ORDER OF HYDRO ELECTRIC POWER STATIONS OF JAMMU &

KASHMIR STATE POWER DEVELOPMENT CORPORATION (GENERATION

UTILITY) FOR FY 2015-16.

The petition was filed by the Petitioner (JKSPDC) for the Hydro Stations as

per the JKSERC (Terms and Conditions for Determination of Hydro Generation

Tariff) Regulations, 2011 (hereinafter referred to as the JKSERC Hydro

Generation Tariff Regulations, 2011) and for the Transmission Line as per

JKSERC (Terms and Conditions for Determination of Transmission Tariff)

Regulations, 2012 (hereinafter referred to as the JKSERC Transmission Tariff

Regulations, 2012).

The Petitioner filed the Tariff Petition before the Commission on November 25,

2014 for determination of AFC and Tariff for the FY 2015-16 in respect of 21

HEPs and Baglihar Transmission System and approval of reimbursement of

actual expenses incurred towards operation and maintenance of gas based

generating stations.


The Petitioner owns and operates twenty two (22) Hydro Electric Projects

including Mohra HEP, one (1) Transmission System and two (2) Gas based

Thermal Power Stations in the state of Jammu and Kashmir. Mohra HEP has

not been functioning since it suffered severe damages in the floods of 1992.

Two Gas based Thermal Power Stations with a total of seven units are

operated only on call from the JKPDD because of the prohibitive cost of

power generation of these stations. The State Government only bears the cost

of fuel whenever these units are operated.

The Petitioner filed a petition with the Commission on November 25, 2014 for

approval of AFC and Tariff Petition for FY 2015-16 for:

1. Eight (8) Hydro Electric Projects, namely USHP II, Chenani III,

Sewa III, Pahalgam, Igo – Marcellong, Baderwah, Marpachoo,

Haftal.

2. Ten (10) old Hydro Electric Projects, namely USHP I, Lower

Jhelum, Karnah, Chenani-I, Ganderbal, , Iqbal Bridge, Bazgo,

Sumoor, Hunder, Chenani II.

3. Baglihar Hydro Electric Project Stage I which includes Baglihar

Hydro Electric Project [Baglihar-Hydro] and a 68 km long 400

kV double circuit transmission line from Baglihar to Kishenpur

and two bays at 400 kV Kishenpur sub-station of PGCIL

[Baglihar-Transmission System].

4. 4 MW Stakna HEP transferred to JKSPDC from JKPDD in

March, 2011.

5. 1.26 MW Sanjak HEP declared commercially operational on

July 03, 2013.

6. Gas based thermal power station I and II situated at Pampore

(for reimbursement of O&M charges by JKPDD).


The Commission on preliminary review of the Tariff Petition for FY 2015-16

directed the Petitioner to submit further information/ clarifications on several

issues vide its letter dated December 3, 2014. The Petitioner subsequently

submitted additional data and clarifications through its Letter No. JKSPDC/ P-

24(IV)/ T-1095/ 2954 dated December 15, 2014.

The Commission held a technical validation session with the Petitioner on

January 6, 2015 and took into consideration the supplementary information

provided by the Petitioner during the technical validation session and admitted

the petition on the same day.

The Commission vide Letter No.JKSERC/Secy/1453 dated January 6, 2015

directed the Petitioner to publish gist of its petition and tariff proposal as

Public Notice in leading newspapers in the State having wide circulation and

invite comments/objections/suggestions from the Stakeholders including

consumers on the Tariff Petition filed. The summary of the petition and tariff

proposal was accordingly published by the Petitioner in 8 leading newspapers

in the State on January 9 & 10, 2015 and the Stakeholders were requested to

submit their comments/ suggestions/ objections by or before January 30, 2015.

5.8.1 Meeting of the State Advisory Committee (Tariff Order of HEPs of J&KSPDC

(Generation Utility) for FY 2015-16).

The Commission convened a meeting with the members of the State Advisory

Committee (SAC) in Jammu on February 4, 2015 for discussing the AFC and

Tariff Petition filed by the Petitioner for determination of tariff of the 21 Hydro

Generation Stations and Baglihar Transmission System for FY 2015-16.

The State Advisory Committee discussed the AFC and Tariff Petition submitted

by JKSPDC in detail. Representatives from JKSPDC highlighted the main

components of the AFC & Tariff Petition and major items of expenditure and

revenue. The members of the SAC provided several valuable suggestions

which have been considered, summarized and mentioned at appropriate places

in the Tariff Order by the Commission.



The Commission initiated public consultation process to understand the views

of the stakeholders on the various aspects of the AFC and Tariff Petition filed

by the Petitioner. Accordingly, public hearings on AFC & Tariff Petition were

held at Jammu and Srinagar as per the details given below:-


Jammu February 07, 2015 Conference Hall, JKSERC

Srinagar February 10, 2015 Conference Hall, IMPA

The Commission also invited various prominent persons and consumer bodies

to take part in the process of tariff determination and represent the interests of

consumers. The comments/ objections/ suggestions received during the

hearings have been duly considered while finalizing the Order.

5.8.3 AFC/Tariff proposed by the Petitioner and that approved by the Commission

i) The proposed AFC and Tariff by the petitioner and approved AFC and tariff

for FY 2015-16 for 8 HEPs calculated at net saleable energy has been

summarized in following table:-

Name of the HEP

FY 2015-16

AFC (Rs. Crore)

FY 2015-16 Indicative Tariff

(Rs. Per KWh)

Proposed Approved Proposed Approved

USHP-II 38.92 38.83 0.88 0.88

Chenani-III 5.23 5.23 1.44 1.44

Sewa-III 6.66 6.67 2.04 2.04

Baderwah 0.85 0.82 0.91 0.88

Pahalagam 5.82 5.62 3.40 3.28

Haftal 2.01 1.97 4.16 4.08

Marpachoo 1.61 1.59 4.30 4.24

Igo-Mercellong 4.65 4.66 2.96 2.96

Total AFC/weighted

Average Indicative Tariff

(Rs./kWh)

65.75 65.39 1.16 1.15


ii) The proposed AFC and tariff by the petitioner and approved AFC and tariff

for FY 2015-16 for 10 old HEPs calculated at net saleable energy has

been summarized in following table:-

Name of the HEP

FY 2015-16

AFC (Rs. Crore)

FY 2015-16 Indicative Tariff (Rs.

Per KWh)

Proposed Approved Proposed Approved

Karnah 3.49 3.47 3.11 3.09

USHP-I 7.86 6.99 0.74 0.66

Lower Jhelum 40.20 33.51 0.67 0.56

Ganderbal 4.82 4.24 0.54 0.48

Iqbal Bridge 3.98 3.95 1.89 1.87

Bazgo 0.37 0.37 3.40 3.38

Sumoor 0.16 0.17 3.58 3.78

Hunder 0.47 0.46 2.68 2.61

Chenani-II 1.19 1.17 1.00 0.98

Chenani-I 8.96 8.34 0.82 0.77

Total AFC/Weighed

Average Indicative Tariff

(Rs./kWh) 71.50 62.67 0.74 0.65

iii) AFC/Tariff for Baglihar FY 2015-16

The Petitioner (JKSPDC) filed petition for approval of AFC and Tariff for

FY 2015-16 in respect of Baglihar HEP Project Stage I in accordance with the

JKSERC (Hydro Generation Tariff) Regulations, 2011.

The petition for approval of AFC and Indicative Tariff for Baglihar -

Transmission System was filed in accordance with the Terms and Conditions

of Transmission Tariff Regulation, 2012 of JKSERC.

The Commission approved the annual fixed charges for Baglihar Hydro and

Baglihar Transmission System for FY 2015-16. The AFC in both cases has

been calculated by considering the various components of tariff. The indicative

tariff approved for the hydro project and transmission system for FY 2015-16

has been computed by taking into account net saleable energy of the HEP.


The following tables provide the component wise break-up of total Annual fixed

charges (Rs. Cr.) and indicative tariff (Rs./kWh) proposed by the Petitioner

(JKSPDC) and approved by the Commission for Baglihar Hydro and Baglihar

Transmission System.

Annual Fixed Charges and Indicative Tariff for FY 2015-16 (Rs. Cr.) (Proposed by the Petitoners)

Description Baglihar

Hydro Project

Baglihar Transmission

System


Interest on Loan 139.32 4.07


Advance Against Depreciation (AAD)



Consultancy Charges 0.98 0.03

Less: NTI 17.18 0.53

Total Annual Fixed Cost 808.27 24.27

Design Energy (In MU) 2536.07 2536.07

Indicative Tariff for FY 2015-16 (Rs/kWh) 3.235 0.097

Approved Tariff for FY 2014-15(Rs/kWh) 2.83 0.08

AFC and Indicative Tariff for FY 2015-16 (Rs. Cr.) (Approved by the Commission)

Description

Baglihar

Hydro

Project

Baglihar

Transmission

System


Interest on Loan 118.35 3.64


Advance against Depreciation (AAD) 137.55 4.07



Consultancy Charges 0.89 0.00

Less: Non-tariff income 17.67 -

Net ARR 686.27 19.65

Net Saleable Energy in MU 2498.03 2498.03

Indicative Tariff Rs. per kWh 2.75 0.08


iv) AFC/Tariff for Stakna FY 2015-16

Stakna HEP is a 4 MW hydro generating station that was transferred to

JKSPDC by JKPDD in March 2011.

The Petitioner made the submissions with regard to AFC and tariff for FY

2015-16 for Stakna HEP in accordance with JKSERC Hydro Generation Tariff

Regulations, 2011.

Particulars such as approved capital cost, installed capacity, design energy, net

saleable energy and date of Commissioning of Stakna HEP are summarised in

the table below:

Name of

HEP

Capacity

in MW

Approved

capital cost (Rs

Cr)

Design

Energy

(MU)

Net

Saleable

Energy

(MU)

Date of

Commissioning

Stakna 4.00 12.65 19.52 19.33 1987

Annual Fixed Charges (Rs. Cr.) and Indicative Tariff (Rs./kWh) for Stakna HEP

(Rs, Cr.) for FY 2015-16 as proposed by JKSPDC is given below:

Description Amount

O&M Expenses 0.21

Interest on Loan 0.00

Depreciation 0.21

Advance Against Depreciation (AAD) 0.00

Return on Equity 0.53

Interest on Working Capital 0.05

Consultancy Charges 0.01

Less: NTI 0.16

Total Annual Fixed Cost 0.85

Design Energy (In MU) 19.52

Indicative Tariff (Rs/ kWh) 0.44

Approved Tariff for FY 2014-15 (Rs./kWh) 0.42


The AFC (Rs. Cr.) and indicative tariff (Rs./kWh) for Stakna HEP for FY 2015-

16 as approved by the Commission and calculated at net saleable energy is

as given in the table below:-

Description Amount

O&M Expenses 0.21


Depreciation 0.21

Advance against Depreciation

(AAD) 0.00





Less: Non-tariff income 0.16

Net ARR 0.85

Net Saleable Energy in MU 19.33

Indicative Tariff Rs. per kWh 0.44

v) AFC/Tariff for Sanjak FY 2015-16

Sanjak HEP is a 1.26 MW hydro generating station that was declared

commercially operational on July 03, 2013. Sanjak HEP was energized by

JKSPDC in October 2011. It had been included in the Tariff Petition submitted

for FY 2013-14, however, it had not been declared commercially operational at

the time of determination of tariff for FY 2013-14. The Commission in its tariff

order for FY 2014-15 approved tariff applicable from the date of declaration of

commercial operation of the HEP.


Particulars such as provisionally approved capital cost, installed capacity,

design energy, net saleable energy and date of Commissioning of Sanjak HEP

are summarised in the table below:-

Capacity

in MW

Approved

capital

cost

(Rs Cr)

Subsidy

(Rs

Cr.)

Capital

cost net of

subsidy

(Rs Cr)

Design

Energy

(MU)

Net

Saleable

Energy

(MU)

Date of

Commissioning

1.26

9.70

0.59

9.11

4.46

4.41

July 2013

The Petitioner made submissions with regard to AFC and tariff for FY 2015-16

for Sanjak HEP in accordance with JKSERC Hydro Generation Tariff

Regulations, 2011.

The Proposed AFC (Rs. Cr.) and Indicative Tariff (Rs./kWh) in respect of

Sanjak HEP are given in the table below:

Description Amount

O&M Expenses 0.44


Depreciation 0.91

Advance Against Depreciation (AAD) 0.74



Less: NTI 0.05


Design Energy (In MU) 4.46

Indicative Tariff (Rsper kWh) 6.36

Approved Tariff for FY 2014-15 (Rs/kWh) 4.10


The approved AFC (Rs. Cr.) and Tariff (Rs./kWh) for Sanjak HEP for FY

2015-16 calculated at net saleable energy is given in the table below:

Description Amount

O&M Expenses 0.16


Depreciation 0.25

Advance against Depreciation (AAD) 0.25





Less: Non-tariff income 0.05

Net ARR 1.67

Net Saleable Energy in MU 4.41

Indicative Tariff Rs. per kWh 3.79

5.8.4 Directives Issued for the FY 2015-16 (Generation Sector)

The Commission, based on its analysis of the AFC & Tariff Petition and the

compliance to previous directives submitted by the Petitioner and information

and suggestions received during the public hearing process on the functioning

of the Petitioner, directed the Petitioner to comply with the following directives:-

Directives

Evacuation

and

Transmission

To prepare and submit the detailed evacuation and transmission plans for its

new and upcoming power projects so that the evacuation/ transmission

system is in place well before the commissioning of the generating stations.

The evacuation plan should be submitted to the Commission within three

months of the date of notification of this Tariff Order.

Viability

study of

existing

power

projects

To conduct viability studies of all its existing Hydro Electric Projects. The

study should determine the viability of existing projects by analysing the

financial inputs& outputs, strengths, weaknesses, opportunities, threats, risks

and suggest strategy to improve the profitability of the projects. The

Petitioner should submit the study reports along with the next Tariff Petition.


Directives

Reporting of

Renewable

Purchase

Obligations

To develop an appropriate protocol for collection of information from various

sources such as Renewable Energy Generating Companies, Obligated

Entities, SLDC etc. on a regular basis and compile and notify such

information on RPO compliance by obligated entities in terms of the decision

taken in meeting convened by the Commission on November 24, 2014 with

all the concerned agencies.

5.9 DETERMINATION OF GENERIC LEVELLISED GENERATION TARIFF FOR

RENEWABLE ENERGY SOURCES (RES) FOR FY 2015-16.

The Jammu & Kashmir State Electricity Regulatory Commission (hereinafter

referred to as JKSERC or the Commission) notified the Jammu and Kashmir

State Electricity Regulatory Commission (Terms and Conditions for Tariff

determination from Renewable Energy Sources) Regulations, 2013 on May 17,

2013 (hereinafter referred to as “the RE Tariff Regulations 2013”), which

provide for terms and conditions and the procedure for determination of tariff

of the following categories of Renewable Energy (RE) generating stations:

a) Wind Power Project;

b) Biomass Power Projects with Rankine Cycle technology;

c) Non-fossil fuel-based co-generation project;

d) Small Hydro plants;

e) Solar Photo voltaic (PV) / Solar Thermal Power Projects;

f) Biomass Gasifier based Power Projects; and

g) Biogas based Power Project.

The Regulations enjoin upon the Commission to determine the generic tariff on

the basis of the suo-motu petition, for the RE technologies for which norms

have been provided in the RE Tariff Regulations 2013. Generic Tariff is

different from the project specific tariff for which a project developer has to file

petition before the Commission as per the format provided in the RE Tariff

Regulations 2013.


Pertinently, project specific tariff has been envisaged for the new RE

technologies and the technologies which are still at the nascent stage of

development, and the Commission shall determine the project specific tariff for

such technologies on a case to case basis.

Clause (1) of Regulation 8 of the RE Tariff Regulations 2013 provides that

“the Commission shall determine the generic tariff on the basis of suo-motu

petition at least six months in advance at the beginning of each year of the

Control period for renewable energy technologies for which norms have been

specified under the Regulations”.

In line with above regulations, the Commission vide its Order No. JKSERC/38

of 2014 dated July 18, 2014 issued the Order for the ‘Determination of

Generic Levellised Generation Tariff for Renewable Energy Sources (RES) for

FY 2014-15 on suo-motu basis applicable for Renewable Energy projects

commissioned in Jammu and Kashmir during FY 2014-15, i.e., from April 1,

2014 to March 31, 2015.

In order to determine the generic tariff for RE projects commissioned during

FY 2015-16 and in due discharge of the mandate under Regulation 8(1) of

RE Tariff Regulations 2013, the Commission brought out the proposal in the

matter of determination of generic tariff for renewable energy technologies for

the FY 2015-16 vide suo-motu Petition No: JKSERC/50 of 2015 dated January

14, 2015.

The Commission published the gist of the suo-motu Petition in four widely

read newspapers of the State in January, 2015.

The Petition was also made available on the website of the Commission.

The stakeholders were requested to submit their written comments /

suggestions / objections latest by February 2, 2015.


5.9.1 Meeting of the State Advisory Committee (Generic Tariff for Renewable

Energy Sources for FY 2015-16)

The Commission convened a meeting of the State Advisory Committee (SAC)

on February 4, 2015 for the purpose of discussing the suo-motu Petition on

the generation tariff from RES for FY 2015-16.

The Commission made a detailed presentation on the determination of generic

levellised tariffs for generation of power from Renewable Energy Sources for

FY 2015-16 and the methodology used for computation of generic levellised

tariff for each RES.

The SAC while appreciating the efforts of JKSERC towards promotion of

Renewable Energy in the State resolved that JKSERC should go ahead with

the notification of the Tariff Order after examining the suggestions/comments, if

any, from the Public/Stakeholders.


In order to maintain transparency in the process for approval of generic

levellised tariffs for generation of power from RES for FY 2015-16, the

Commission involved the stakeholders by initiating a public consultation

process to understand their views on various aspects of suo-motu Petition

initiated by the Commission. Accordingly, the public hearings on the suo-motu

Petition were held at Jammu and Srinagar as per the details provided in the

following table:



Jammu February 7, 2015 Conference Hall, JKSERC

Srinagar February 10, 2015 IMPA, Moulana Azad Road


During the public hearings, the Commission made a detailed presentation on

the determination of the generic levellised tariffs for generation of power from

Renewable Energy Sources for FY 2015-16 and the methodology used for

computation of generic levellised tariff for each RES.

The comments/objections/suggestions received during the SAC meetings as well

as the public hearings were duly considered while finalizing the Order on

determination of generic levellised tariff for Renewable Energy Sources for

FY 2015-16.

5.9.3 Approved generic levellised tariff for RES for FY 2015-16

The approved generic levellised tariff for generation from renewable energy

sources for FY 2015-16 is summarized in the following tables.

Approved generic Levellised tariff for RE technologies without fuel component for FY 2015-16 (Rs/ kWh)

Particulars

Levellised Total

Tariff

(FY 2015-16)

Benefit of

Accelerated

Depreciation (if

availed)

Net Levellised

Tariff

(upon adjusting

for

Accelerated

Depreciation

benefit)

WIND ENERGY

Wind Zone -1 (CUF 20%) 6.15 0.36 5.79

Wind Zone -2 (CUF 22%) 5.59 0.32 5.27

Wind Zone -3 (CUF 25%) 4.92 0.29 4.63

Wind Zone -4 (CUF 30%) 4.10 0.24 3.86

Wind Zone -5 (CUF 32%) 3.84 0.22 3.62

SMALL HYDRO

Capacity below 5 MW 4.34 0.38 3.96

Capacity 5 MW upto 25 MW 3.69 0.35 3.34

SOLAR PV & THERMAL

Solar PV 6.79 0.73 6.06

Solar Thermal 11.63 1.32 10.31


Approved generic tariff for RE technologies with fuel component for FY 2015-16 (Rs/ kWh)

Particulars Levellised

fixed cost

Variable cost

(FY 2015-16)

Applicable

Tariff

(FY 2015-

16)

Benefit of

Accelerated

Depreciation

(if availed)

Net Levellised

Tariff

(upon adjusting

for

Accelerated

Depreciation

benefit)

BIOMASS 2.15 4.02 6.17 0.16 6.01

NON FOSSIL FUEL

BASED COGENERATION

2.47 3.34 5.81 0.21 5.60

BIOMASS GASIFIER 2.37 5.31 7.68 0.13 7.55

BIOGAS 2.15 3.00 5.15 0.34 4.81

5.10 ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2014-15 AND TARIFF

REVISION PROPOSAL FOR FY 2015-16 FOR JKPDD-DISTRIBUTION.

The petition could not be filed in time by the Utility on the plea that most of

its offices were inundated during the floods which hit the State in September,

2014, damaging the vital records. In the meantime Assembly elections in the

State were announced and Model Code of Conduct became operational as a

result of which the Utility, being a Govt. department could not seek necessary

approvals from the Govt. on the tariff proposals. The Utility therefore, sought

extension in the period for filing the petition and extension of the validity of

the Tariff order for FY 2014-15 upto end of July, 2015. The Commission vide

its order dated March 13, 2015, extended the date of filing of the petition upto

April 10, 2015 and also extended validity of the tariff order for 2014-15 upto

ending July, 2015.


5.11 SUO-MOTO PETITIONS

Following suo-moto petitions have been initiated by the Commission to seek

compliance of the Utility to the provisions of the Act:-

1. Suo-moto Petition No. JKSERC/48/SM of 2014 regarding implementation

of the provisions of Sub-Section (5) of Section 36 of Jammu & Kashmir

Electricity Act, 2010 on the issue of establishment of forum for redressal of

grievances of the consumers (CGRF) in accordance with the

guidelines/regulations specified by the Commission.

2. Suo-moto Petition No. JKSERC/37/SM of 2013 for compliance of the

provision of Section 49 of the Act regarding system and consumer metering

in the State

3. Petition No. JKSERC/39/SM of 2013 on the issue of preparation of State

Electricity Plan and strengthening of Transmission and Distribution Network

in the State in terms of the provisions of Section 3 of the Act.

5.12 STUDIES

Commission initiated a process of conducting general and technical studies

through various independent agencies. A study was got conducted by the

Commission through Shri Mata Vaishno Devi University (SMVDU) under the

title “Empirical Study of Psychology and Mindset of Electricity Consumer in the

State of J&K and Social Impact of power losses in Jammu & Kashmir:

Performance, Challenges and Opportunity.” The final report submitted by the

University has been shared with the Utility and other stakeholders. A copy of

the report is also available on the website of the Commission.


5.13 DISPOSAL OF PETITIONS AND APPEALS (FY 2014-15)

The details of petitions, appeals and applications handled by the Commission

are as under:-

Particulars Pending as

on 31.03.2014

Received during

the year (2014-15)

Total Disposed during

the year

Pending as on

31.03.2015

Consumer

Application

- 2 2 2 -

Tariff Petition 2 2 4 4 -

Other Petition 2 6 8 7 1

5.14 ANNUAL REPORTS OF THE COMMISSION

In compliance to Section 82 of J&K State Electricity Act, 2010 the Commission

has submitted all the annual reports upto the year 2013-14. The present

report for the year 2014-15 is the seventh such report.


6

Annual Statement of Accounts



6.1 FINANCE AND ACCOUNTS

The Jammu & Kashmir State Electricity Regulatory Commission is fully funded

by the Government of Jammu & Kashmir. Under Section 80 of the Electricity

Act 2010, a separate J&K State Electricity Regulatory Commission Fund is

required to be constituted. The matter has been taken up with the State

Govt. and final orders are awaited. During the FY 2014-15, the State

Government allotted funds to the tune of Rs. 236.60 lacs under Non-Plan

Budget and the expenditure was to the tune of Rs. 169.55 lacs as per the

details given below:-

S.No. Primary unit of Appropriation

Funds Received

from the Govt.

(Rs. in Lacs)

Expenditure

(Rs. in Lacs)

1 Salaries 114.00 97.62

2 Travel Expenses 10.00 9.23

3 Telephone 2.00 1.39

4 Office Expenses 8.00 7.79

5 Electricity Charges 2.00 2.00

6 Rent Rate & Taxes 9.00 3.04 *

7 Books and Periodicals 1.50 0.78 **

8 POL 7.00 6.35

9 Sumptuary 0.60 0.12

10 Professional & Spl. Charges 60.00 23.21

11 Furniture & Furnishings 6.00 6.00

12 Medical Reimbursement 2.00 1.28

13 Purchase of Computers 1.00 0.99

14 Outsourcing of upkeep 3.00 2.99

15 Seminars & Training 5.00 1.26

16 Membership 5.50 5.50

Total 236.60 169.55

* An expenditure of Rs. 5.22 Lacs could not be booked as the bill could

not be encashed in the treasury.


** An expenditure of Rs. 0.56 Lacs could not be booked as the bill could

not be encashed in the treasury.

In addition to above, Rs.100 lacs were allotted to Commission under Major

Head 4801-COP (plan) for acquisition of land/construction of office complex at

Srinagar. As formal sanction to the transfer of the land identified at Pampore

belonging to JKI Ltd., is awaited from the Industries and Commerce

Department, a proposal for parking of funds under 8443-Civil deposit at Moving

Secretariat Treasury was submitted to the Govt. Vide letter

No. JKSERC/Secy/11/2013/1952-53 dated 23.03.2015 but it was not approved.

6.2 REVENUE EARNED BY THE COMMISSION

The year wise revenue earned and remitted into Govt. Treasury by the

Commission during the last four years is as given below:

FY (Rs. in lacs)

2011-12 2.51

2012-13 2.69

2013-14 11.31

2014-15 10.87


7

FOR/FOIR/Other Meetings/Programmes



7.1 MEETINGS OF THE FORUM OF REGULATORS (FOR) AND FORUM OF

INDIAN REGULATORS (FOIR)

In accordance with sub-section (2) of section 166 of the Central Electricity Act,

2003, a Forum of Regulators (FOR) has been constituted by the Government

of India, of which all the Chairpersons of the State Electricity Regulatory

Commission are the Members and the Chairperson of the Central Electricity

Regulatory Commission is the Chairperson. Accordingly, the Chairperson, J&K

State Electricity Regulatory Commission is a Member of the FOR. The Forum

provides a platform for exchange of views on electricity sector in the country

and also an opportunity to discuss various regulatory issues.

During the year 2014-15, the chairperson J&KSERC attended the FOR

meetings held at the following places:-

1. New Delhi April 2, 2014

2. New Delhi August 27, 2014

3. Mussoorie (Uttarakhand) October 16-18, 2014

4. New Delhi December 1, 2014

5. New Delhi February 17, 2014

The chairperson J&KSERC also attended FOIR workshop/research conference

held at Kochi from December 10 – 12, 2014.

Sh. G.M.Khan Hon’ble Member (Finance) attended the 15th Annual General

Body Meeting of Forum of Indian Regulators (FOIR) and 41st meeting of

Forum of Regulators (FOR) held at New Delhi on June 26, 2014 and June 27,

2014 respectively.


7.2 CAPACITY BUILDING/TRAINING PROGRAMME

1. Sh. V.K.Sarngal, Superintending Engineer, JKSERC attended the 7th capacity

building/training programme at IIT Kanpur w.e.f. 28.01.2015 to 30.01.2015 and

International component of 8th Capacity building/training programme sponsored

by Forum of Regulators (FOR) at Singapore w.e.f. 17.02.2015 to 21.02.2015.

1. Sh. Abdul Hamid Secretary JKSERC attended 5 days training programme on

“Decision making for effective leadership” at Administrative Staff College of

India (ASCI) Hyderabad w.e.f. 16.03.2015 to 20.03.2015.


8

Important issues



8.1 IMPORTANT ISSUES WHICH REMAINED PENDING WITH THE

DEPARTMENT/UTILITY DURING THE PERIOD UNDER REPORT:

1. Notification of J&K Electricity Rules to implement the Provisions of the J&K State

Electricity Act, 2010.

2. Notification of State Electricity Policy, State Electricity Plan, Tariff Policy and other

Policies under Section 3, 4 & 5 of the J&K State Electricity Act, 2010. This is

important as the Commission, in terms of Section 55 (i) of the Act is required to

be guided by the State Electricity Policy and State Tariff Policy in the

determination of tariff.

3. Establishment of Consumer Grievances Redressal Forum (CGRF)/Ombudsman

under Section 36 of the Act. Under Sub-section 5 of Section 36 of the Act, the

Utility was required to establish the Forum within 6 months from the

commencement of the J&K Electricity, 2010.

4. Notification of Provision related to Safety and Electricity Supply under Section 47

of the Act.

5. Constitution of Co-Ordination Forum/District Committee under Section 128 of the

Act.

6. Creation of the State Electricity Regulatory Commission Funds as required under

Section 80 of the Act

7. Creation of need based posts for JKSERC for its smooth functioning.

Sd/-

(Abdul Hamid) KAS

Secretary

J&K State Electricity Regulatory Commission

Srinagar/Jammu



9

Annexures



Annexure-I

Organizational Structure of JKSERC

Member

Technical

Chairman Member

Finance

Pvt. Secretary

Tech. Consultant

Secretary

Dy. Secretary

Law

Supdt. Engineer

Accounts Officer

Steno-cum

Computer Operator

Computer Operator

Draftsman

Librarian

Helper

Receptionist-

cum-Telephone Operator

Stenographer

Accountant

Accounts

Assistant

Senior Asstt.

Junior Asstt.

Driver



Annexure-II

Gist of the Directives issued by the Commission and compliance reported by the

Utility:

A. MYT order (FY 2013-14 - FY 2015-16)

System Studies

& Feeder-Wise

Energy Audit

Summary of Directive issued:

The utility was directed to carry out the system studies for

determination of transmission loss in the system and also conduct

feeder-wise energy audit and consumer indexing for estimating the

base T&D loss level. The commission directs the petitioner to submit

a report containing a holistic loss reduction plan within 6 months of

issue of the order on “Business Plan for three year MYT period from

FY 2013-14 to FY 2015-16 dated 22nd March 2013.

JKPDD’s response:

JKPDD is monitoring losses on all feeders regularly. The Department

is ring fencing 11kV and 33kV feeders and is also in the process of

distribution transformer metering. With the commissioning of data

centres at Jammu and Srinagar the losses on the feeders shall be

monitored online.

Commission’s views:

The Commission is of the view that even after repeated directives the

Petitioner has not submitted report on actual feeder-wise T&D losses

and measures to reduce losses in future. This shows lack of

seriousness on part of the Petitioner and is highly disturbing given

that the T&D losses in the State are one of the highest in the

country. In view of above the Commission again directs the Petitioner

to submit report on actual losses estimated and loss reduction plan

within three (3) months from the date of issue of this Order.

Detailed

Investment Plan

for New

Distribution

Works


The commission directs the Utility to submit the detailed investment

plan along with the cost benefit analysis for the proposed new

distribution works to be submitted along with the Annual Performance

Review (ARR) & Tariff petition for FY2014-15.

JKPDD’s response:

The information shall be submitted separately

Commission’s views:


The Utility is yet to submit the detailed investment Plan for

distribution works. The non-compliance of the directives by the

Petitioner is highly objectionable and in case the Petitioner fails to

comply with the directives, the Commission shall disallow all capital

expenditure for new distribution works. Accordingly, the Commission

again directs the Utility to submit the plan within three (3) months

from the date of issue of this Order. In case of non-compliance the

Commission will be constrained to take penal action.

Audit for

metering


The Commission directs the Utility to conduct an independent audit of

actual consumers metered and consumers pending for metering

during the MYT period and submit quarterly reports within the first

week of succeeding month of the quarter to the commission for

monitoring purposes.

JKPDD’s response

The Department is regularly doing this exercise and the data remains

available with the department and shall be communicated to Hon’ble

Commission.

Commission’s views

Even though the Petitioner states that it is complying with the

directives given by the Commission, but the fact remains that the

Commission has not received any report in this regard. The

Commission directs the Petitioner to submit the directive-wise status

report within one (1) month from the date of issue of this Order.

Non-compliance will result in penal action by the Commission.

Progress

Monitoring

Report


The petitioner is directed to submit quarterly information on each of

all the existing schemes approved by the Commission along with the

Detail Project Report of all new schemes approved by the

Commission which are being implemented in the ensuring quarter.

The information to be submitted should be consistent with the DPR

for the respective schemes. Any scheme without a detailed DPR

would be disallowed by the Commission. The petitioner is directed to

submit the desired information along with DPRs for new schemes

with the first week succeeding every quarter on cumulative basis.


Non-compliance in this regard shall invite penal action.

JKPDD’s response:

The Petitioner again submitted that it will comply with this directive.

Commission’s Views:

The Commission directs the Utility to submit quarterly compliance

report. These shall be submitted in the month of July, October,

January and April each year.

Meter Testing

arrangements


The commission directs the JKPDD-D to put in place an accredited

independent third party meter testing arrangements in all districts and

also prepare norms for allowing consumer to purchase their own

meters of approved specification of competent authority duly tested

and certified by such accredited third party testing agencies. In –situ

meter testing facilities may be included at Divisional & Sub-Divisional

levels in J&K

JKPDD’s response:

The JKPDD through a request of empanelment has already invited

twice the NABL accredited third party meter testing agency for

empanelment with the Department for carrying-out in-house and in-

situ testing of consumer meters. One agency M/S Spectro Analytic

Laboratories has already been empanelled and some more agencies

have applied when second empanelment notice was issued and their

empanelment is under process. The agencies have been requested to

mobilize their resources in the state. The department has also floated

tenders for establishment of meter testing laboratories at Srinagar and

Jammu. The Department in touch with National Physical Laboratory,

New Delhi and CPRI for seeking technical expertise in this regard.

Commission’s Views:

The commission notes the progress made by the Petitioner to meet

the above directive and further directs to submit actual status of

meter testing facilities set up within the State together with the total

category wise meter test centers along with next tariff petition.

Theft and

Pilferage of

Electricity


Utility should constitute a task force in each circle to carry out raids

on a regular basis to check pilferage of electricity. The officers in

charge of the concerned Circles shall have to be made answerable in


case of detection of theft/ pilferage of electricity in their areas of

operation, besides booking those consumers committing theft/pilferage

and penal action taken against them. The Commission further directs

the Petitioner to submit the quarterly reports within first week of the

month succeeding the quarter on “Theft Detection & Fine

Imposed/Realized” and make available these reports in the public

domain so that the efforts of the utility in curbing theft can be

reorganized by the masses.

JKPDD’s response:

JKPDD has already started a massive drive against power theft and

defaulters across the state. Special enforcement teams were

constituted in the year 2012 in addition to routine inspection squads

which conducted inspections almost in every part of the state with

results. 120834 inspections were conducted in the year 2012-13 and

2013-14 ending Dec., Rs 23.59 Cr fine was imposed against the

defaulters, Rs 14.89 Cr. has been recovered during that period.

Various news papers in the state have also reported on the drive

carried out by the department and drive is on.

Commission’s Views

The Commission notes the compliance with the directive issued by

the Commission and further directs the Petitioner to submit report for

past three years on actual cases of theft/ pilferage identified, action

taken and total amount recovered along with next tariff Petition.

Load

Generation

Balance


The Commission directed the petitioner to make the details of load

shedding available in public domain in advance and also submit to

the Commission a Load Generation Balance Report (LGBR) on power

procurement planning based on actual hours of supply made to

consumers

JKPDD’s response:

The department can provide 24X7 power supply to all the consumers

across the state if the consumers consume electricity as per their

registered loads. Power curtailment becomes inevitable when the

consumers use unregistered and unauthorised loads. Use of such

loads, overloads the system and put constraints at every level of the

system. However the JKPDD gives wide publicity to the scheduled


curtailment programs through news papers and also post it on the

official websites of the department. JKPDD has also furnished the

reply to a petition in this regard before the Hon’ble Commission.


Even though the Petitioner widely circulates the load shedding details,

it failed to submit the LGBR on power procurement planning based

on actual hours of supply made to consumers to the Commission.

Accordingly, the Commission again directs the Petitioner to submit the

LGBR report within three (3) months from the date of issue of this

Order.

Energy

Awareness

Programme


The commission directs the Utility to submit quarterly compliance

report within first week of the month succeeding the quarter under

the “ Bureau of Energy Efficiency” sponsored schemes including the

Bachat Lamp Yojana

JKPDD’s response

The JKPDD has already held a joint workshop with Bureau of Energy

Efficiency, New Delhi, in which representatives of Govt department,

Corporations, Trade, Industry, Civil Society were invited and schemes

sponsored by BEE were discussed including Bachat Lamp Yojana.

The JKPDD through an expression of interest (EOI) had invited all

the agencies empanelled with B.E.E for launching Bachat Lamp

Yojana in the state of Jammu & Kashmir but there was no response

from any agency in view of some global recession and in carbon

credits. However the department on its own is exploring the

possibility of distributing CFLs according to the resources available


While the Commission appreciates the steps taken by the Utility,

however it further directs the Utility to aggressively work towards

general public awareness of this Programme and ensure its

implementation. Stress needs to be laid for use of energy efficient

devices and LED lamps

Metering


The commission directs the licensee to develop a comprehensive

metering plan for completion by end of FY 2015-16 and get it

approved by the State Government with an undertaking of support of


GoJK on compliance of the relevant provisos of the Act by the

licensee. Further the Utility is directed to submit the State

Government approved metering plan to the Commission before the

completion of existing deadline i.e. by 30th June 2013.

JKPDD’s response

JKPDD has made submissions in this regard in the present petition

before the Commission.


The Commission vide Suo-moto Order dated 21st April 2014 issued

specific directions to the Petitioner in this behalf and accordingly

directs JKPDD-D to meet the directives as issued in the Suo-moto

order by the Commission and submit quarterly progress reports to the

Commission

Segregation of

Cost

Summary of Directive Issued:

The commission directs the Utility to maintain asset data for opening

GFA and the audit data for both distribution and transmission function

and submit the same to the Commission by 30th September 2013.

JKPDD’s response

It shall be submitted as part of Unbundling process


In absence of such details, the Commission is unable to accurately

apportion the costs to transmission and distribution functions of

JKPDD as it also renders the projections for MYT period inaccurate.

Thus, the Commission directs the Petitioner to accelerate the process

for unbundling and submit segregated details of costs along with next

tariff petition.

TOD tariff

Summary of Directive Issued

The Commission directs the Utility to submit the report on

assessment of ToD Tariff including consumption details of peak and

off-peak periods for all HT consumers on a monthly basis before

30th September 2013.

JKPDD’s response

The department shall assess and report.


The Commission notes with concern that even after completion of

over a year, the Petitioner has not, till date submitted report


regarding consumption of peak and off peak periods for all HT

consumers. The Commission shall undertake suo-moto penal action in

case such attitude of the Petitioner continues. The Commission again

reiterates that the Petitioner submits a report within One (1) month

from the date of issue of this Tariff Order.

Demand Side

Management

Summary of Directive issued

The Commission notes that the petitioner failed to submit a detailed

Demand Side Management (DSM) plan along with the ARR & Tariff

petition for the MYT control period from FY2013-14 to FY2015-16 as

directed by the Commission earlier. Further, the J&K SERC (Multi

Year Distribution Tariff) Regulations, 2012 also provide that the

petitioner should develop a comprehensive power purchase and

procurement plan after accounting for DMS plan. Thus, the

commission again directs the petitioner to submit a DSM Plan for

approval of the Commission by 30th June 2013.

JKPDD’s response:

Although the department is working towards Demand Side

Management plans, however a comprehensive plan shall be submitted

shortly.


The Commission again notes with concern that even after completion

of over a year, the Petitioner has failed to submit detailed DSM plan

for the State. The Commission again reiterates that the Petitioner

shall submit a report within One (1) month from date of issue of this

Tariff Order.

Arrear Recovery


The Commission reiterates its earlier directive that the Utility should

submit quarterly reports on arrears outstanding against each category

of consumers. The Commission would like to know the collection,

billing and accounting of arrears of previous years in the revenue

realized of particular year. A complete detail of arrears and their

realization from FY 2006-07 should be made available to the

Commission latest by 30th June 2013.

JKPDD’s response

JKPDD regularly prepares the list of consumers with arrears in all the

categories. The list is being published in the newspaper also. Such


case are being referred to Mobile Magistrate also on regular basis by

the subordinate offices.


The Commission notes a little progress achieved by the Petitioner on

compliance of the directive, however the Petitioner has not submitted

year wise recovery report on the arrears. The Commission directs the

Petitioner to submit the same within one (1) month from the date of

issue of this Tariff Order.

Actual Cost of

Supply


JKPDD is directed to conduct a study to determine the actual cost of

supply for each consumer category as per the methodology

prescribed by this Commission in the J&K SERC (Multi Year

Distribution Tariff) Regulations, 2012 and submit the report by 30th

September 2013.

JKPDD’s response

JKPDD shall undertake this exercise and report to the Commission.


The Commission again notes with concern that even after completion

of over a year, the Petitioner has till date not prepared a report and

submitted to the Commission. The Commission shall undertake suo-

moto penal action in case such attitude of the Petitioner continues.

The Commission again reiterates that the Petitioner shall submit a

report within One (1) month of issue of this Tariff Order.

Low Load

Factor

Summary of Directive issued

The Utility should undertake testing of all those consumers in non-

domestic and LT Industries categories whose monthly load factor is

less than 1%. The Utility is also directed to undertake the exercise of

establishing the Load Factor Data base of the state and submit the

report by 30th Sept. 2013.

JKPDD’s response:

With the commissioning of Data centres at Jammu and Srinagar this

exercise will automatically be undertaken.


The Commission directs the Petitioner to submit compliance report

within three (3) months from date of issue of this Tariff order.


B. Additional directives to JKPDD (Utility) in the Tariff order for the year 2014-15

Directives

1. Metering Plan

(i) The Utility shall fulfill its commitment to achieve 100%

metering in State by end of FY 2015-16 as further delay in

100% metering beyond March 2016 would result in

declaring supply of electricity to unmetered consumers as

illegal in terms of the provisions of Section 49(1) of J&K

Electricity Act 2010 and Commission’s orders issued from

time to time.

(ii) The Utility shall establish and develop authentic third party

meter testing mechanism in the State as is required in

terms of Section 44 of the Act read with Chapter A5 of the

Jammu and Kashmir State Electricity Supply Code, 2011

and report compliance to the Commission with the next

Annual Performance Review Petition.

(iii) The J&K PDD should evolve a comprehensive mechanism

for closely monitoring the implementation of proposed

metering plan at various levels particularly at the level of

Administrative Department. The province-wise/ Circle-

wise/Division-wise progress report in the light of the revised

action plan submitted by the Utility shall be submitted to

the Commission on a quarterly basis for review.

(iv) As there has been serious deviation from the mandate

given by the State Legislature under Section 49(1) of the

Act 2010 for completion of metering within a period of 2

years from the date of notification of the J&K Electricity Act,

2010, the JKPDD-D need to place the facts before the

State Legislature for ratification of the extended dead line

for achieving 100% metering in the State.


Directives

2. Compliance to

Renewable Power

Purchase Obligation

The Utility shall open a separate account for meeting the

annual fixed obligation of renewable energy, which includes

carry forward balances and purchase of RECs to meet

shortfall, if any. This is necessary to ensure the compliance

of the relevant regulations. JKPDD-D shall review the

position with the Nodal Agencies periodically and report the

progress to the Commission. Further, the utilization of the

funds created in this account shall be decided by the utility

in consultation with the Commission as per the relevant

regulations.

3. Area wise loss

reduction plan

The Utility shall submit the district-wise and circle-wise loss

reduction plan on the prescribed MYT formats along with

next tariff Petition. The failure to do so may invite penal

action by the Commission.

4.Data on T&D

losses to be made

available on the website

The Utility shall upload circle wise / feeder wise T&D loss

data with other relevant details on its website and report

compliance within two (2) months from the date of issue of

this Order.

5. Implementation of

KVAh tariffs

The J&K PDD shall put in place the requisite infrastructure

for metering and billing on KVAh basis. The Petitioner is

also directed to submit the category wise status of KVAh

compatible metering, impact analysis of implementation on

KVAh billing on each of the proposed consumer category

and category wise revenue impact of proposed KVAh billing

vis-à-vis the revenue at prevailing tariffs along with next

tariff petition. The status of reactive compensation at all

levels of power system in J&K shall also be furnished.

6. Submission of audited

accounts

The Utility shall submit audited accounts along with next

tariff petition for Truing up of expenses for FY 2013-14. In

absence of audited accounts, the Commission shall not

provide any True up to the Petitioner.


Directives

7. Submission of list of

consumers

with arrears

The Department shall submit category-wise list of consumers

with arrears exceeding Rs. 1 Lac or two months energy

bills, whichever is higher as on 1st April 2014 along with

steps taken to recover the arrears and actual recovery

status with the next tariff petition. Reasons for not effecting

recovery and allowing to pile up the same be also furnished.

8. Details of

Subsidy from

State Government

The Utility shall come up with the consumer category wise

subsidy provisions granted in advance by the State

Government in accordance with the provisions of Section 59

of the Act.

Accordingly, the Commission directed the Petitioner to

submit all relevant details in accordance with the provisions

of Section 59 of the Act clearly providing amount of subsidy

received from State Government along with the next tariff

petition.

9. Progress Report on

Unbundling

The Department shall submit the progress report on

unbundling of the Department within three (3) months from

the date of issue of Order.

10. Segregated asset

details of

Transmission and

Distribution functions

The Department shall submit the segregated details of

assets of transmission and distribution functions along with

the next tariff petition. The progress made till date should be

furnished in the month of August, 2014.

11. Capital expenditure

and capitalization

The Department shall submit the scheme wise details of

Capital Expenditure Plan and Capitalization Schedule as per

the formats prescribed in the JKSERC (Multi Year

Distribution Tariff) Regulations, 2012 by September 2014.

12.Setting up of

Regulatory Cell

The Department shall set up a special cell to attend to

regulatory affairs and to monitor timely implementation of the

directions issued by the Commission.


Directives

13.Difference between

revenue targets

approved by JKSERC

and revenue realised

by JKPDD-D

The Utility shall undertake a comprehensive consumer

category wise analysis of such revenue shortfall each year

and submit the same to the Commission as part of the

Tariff Petition indicating clearly the category wise details of

the arrears so that the same can be treated as opening

balance to be recovered over and above the revenue targets

approved for the particular year.

-------------------------***-------------------------

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