Summary OfUGVCL MYT Petition OfUGVCL MYT Petition.pdf · 2011 (Projected)* LT consumers ... Also, a...

MYT proposal for first control period (F.Y. 2008-09, 2009-10 & 2010-11)

Summary of the Petition Page 1 of 21

1 Introduction

Uttar Gujarat Vij Company Limited (UGVCL) is one of the distribution

companies engaged in distribution of electricity to the north zone area of

Gujarat. The Uttar Gujarat Vij Co. Ltd obtained its Certificate of

Commencement of Business on the 15th October, 2003. The Company has

started commercial function w.e.f. 1st April 2005.

Salient features of the company are highlighted as under:

Table 1: Brief Profile of UGVCL

Particular Details

Area of Operation in Gujarat Northern region of Gujarat

Total Area in Sq.Km. 49,950

District Covered 6 + 3 (Partly)

No.of Towns 61

No.of Villages 4,618

Population 92,63,911

Total Circles 4

Total Division Offices 20

Total Sub-Division Offices 127

(a) O&M 118

(b) REC 09

Total Sub-Stations 284

Total No of Feeders 3,203

Total HT Line (Km.) 67,084

Total LT Line (Km.) 56,990

Total Transformers (Nos.) 1,09,531

Total Employees 6,995

Herewith, the company is submitting this petition to get its ARR approved for

the first Control Period. While submitting this MYT petition, UGVCL has made

adequate efforts to adhere to the regulations framed by the Hon’ble

Commission under the purview of Gujarat Act and the Electricity Act 2003 in

most areas. This petition also includes the status on the compliance of the

Directives issued by the Hon’ble Commission in its last tariff order.

2 Submission Plan

UGVCL proposes to make submissions to the Honorable Commission in support

of this Petition as under:

• Estimation of Sales & Revenue

• Estimation of Expenses



o Purchase of Power

o Other expenses

• Capital Expenditure Plan

• GERC Tariff Order dated 31st March 2007 : Directives & its compliance

• Proposal for revision of Tariff Structure

• Prayers

3 Summary of Growth & Projections

The growth rates observed in the energy sold to each consumer category has

been analyzed for the purpose of sales projections for the Control Period. The

analysis of the growth rate lends insight into the behavior of each category

and hence forms the basis of forecasting the sales for each category.

4 Projected Demand Profile for the Control Period

The projected demand profile for the company is as follows:

Table 2 : Projected Category-wise Units Sold (MUs)

Tariff Category 2009

(Projected)*

2010

(Projected)*

2011

(Projected)*

LT consumers

Residential 1049 1191 1347

Commercial 326 365 405

Industrial LT 656 697 741

Public Lighting 37 39 42

Agriculture 6018 6141 6269

Public Water works 398 424 451

LT Total 8484 8858 9256

HT consumers

Industrial HT 2442 2686 2954

Railway traction 11 11 11

HT Total 2453 2697 2965

Total 10937 11555 12221



Table 3 : Projected Category-wise No. of Consumers


(Projected)*

2010

(Projected)*

2011

(Projected)*

LT consumers

Residential 1917002 2103673 2299304

Commercial 221751 232963 244742

Industrial LT 30866 32539 34303

Public Lighting 7365 7785 8229

Agriculture 219954 226399 232899

Public Water works 11582 12173 12794

LT Total 2408520 2615532 2832271

HT consumers

Industrial HT 1768 1927 2100

Railway traction 1 1 1

HT Total 1769 1928 2101

Total 2410289 2617460 2834372

Table 4: Projected Category-wise Connected Load (MW)


(Projected)*

2009

(Projected)*

2010

(Projected)*

2011

(Projected)*

LT consumers

Residential 1018 1129 1248 1378

Commercial 281 303 328 354

Industrial LT 555 566 577 589

Public Lighting 18 18 19 19

Agriculture 3051 3263 3487 3722

Public Water works 157 161 166 171

LT Total 5079 5440 5824 6233

HT consumers

Industrial HT 707 771 833 899

Railway traction 5 5 5 5

HT Total 712 776 837 904

Total 5791 6216 6661 7137

5 Proposal for change in the tariff structure

The power tariff regime in Gujarat has remained fairly stable with hardly any

tariff increase being implemented in the last seven years. Infact, the last time

there was an increase in the tariff rates in the retail tariff schedule was in FY

2000-01. Since then, the company has been able to absorb the significant



increase in its power purchase cost and other expenses by continuously

improving its performance parameters, especially its distribution losses and an

improving consumption mix (i.e., increasing contribution of higher revenue

realization categories). The company has also been able to post a marginal

profit in the past two years (albeit, much lower than the normative RoE it is

entitled to).

However, going forward, the above situation is unlikely to be sustainable

based on the current tariff structure. There has been a sharp increase in the

power purchase cost of the company in recent months on account of the

shooting up of prices of coal and gas the world over. Not all of this increase is

being passed on to the consumer through the FPPPA mechanism.

Further, the company has ambitious capital expenditure plans for network

upgradation and maintenance to meet the fast growing demand of its

consumers. As part of the “Golden Goals” targets of GoG, significant number

of pending agriculture connections have to be issued to farmers in the coming

years. Also, a large number of new connections are to be issued to BPL

households in the coming years. This shall not only add to the company’s

capital costs but also add substantial number of subsidized consumers to its

fold leading to a considerable impact on the company’s bottomline. Hence,

the improvement in the consumption mix of the company towards higher

realization consumer categories in recent years is likely to be stymied going

forward.

The non power purchase expenses of all the companies of erstwhile GEB have

shown an increase of 7.1 % since FY 2001-02. Going forward, the company

expects that its O&M expenses shall see a sharper rise due to the impact of the

6th Pay Commission on its salary bill as well as its increased focus on preventive

maintenance and network up gradation in order to curtail losses and improve

the quality of supply. Further, the company’s depreciation cost and interest

cost shall also increase on account of its expanding asset base and higher

interest rates. Thus, the company needs a correction in its revenue realizations

in order to keep pace with its increasing cost of supply.

It is also noteworthy that in the past, the company was able to tide over its

revenue deficit in part on account of the APDRP incentive it earned on the

year on year reduction in losses that it was able to achieve. For e.g., in FY 2005-



06 and FY 2006-07, the company received Rs 4488 lacs and Rs 10830 lacs as

APDRP incentive under the scheme. However, during the control period this

incentive is likely to be discontinued resulting in a loss of a major support to the

company.

In view of the above, the company is proposing a revised tariff structure with

increased tariff rates for the first control period. In order to avoid a “tariff

shock” to the consumers, the company is proposing a small increase in tariff for

all tariff categories, except agriculture, for each year of the control period.

Given the current situation of high inflation and rising food prices in the

country, the company has not proposed any hike in agriculture category tariff

for the control period.

As such, the company incurs substantial “fixed costs” in maintaining the power

supply to consumers apart from the energy/ variable charges it pays for the

energy bought by it. These fixed costs include fixed charges paid to power

plants, recurring costs of capital expenditure such as interest costs,

depreciation and other O&M expenses etc. However, the fixed/ demand

charges being collected by the company under the current tariff regime are

disproportionately low, especially for residential and commercial categories.

Thus, in its proposal, the company has proposed an increase in tariff primarily

through an increase in the fixed/ demand charges being levied on consumers.

The proposed rates for fixed and energy charges for each of the tariff slabs for

the three years of the control period are given in the tables below.

a) Fixed Charges:

Table 5: Fixed charges proposed for the control period

Customer Category Fixed Charges

(Current)

Fixed

Charge

(Proposed)

FY 2008-09

Fixed

Charge

(Proposed)

FY 2009-10

Fixed

Charge

(Proposed)

FY 2010-11

LFD I

URBAN

BPL Households 05 Rs/mth 05 Rs/mth 05 Rs/mth 05 Rs/mth

Upto 2 KW 05 Rs/mth 10 Rs/mth 15 Rs/mth 15 Rs/mth

2-4 KW 15 Rs/mth 25 Rs/mth 40 Rs/mth 40 Rs/mth




(Current)

Fixed

Charge

(Proposed)

FY 2008-09

Fixed

Charge

(Proposed)

FY 2009-10

Fixed

Charge

(Proposed)

FY 2010-11

4-6 Kw 30 Rs/mth 40 Rs/mth 60 Rs/mth 60 Rs/mth

>6 KW 45 Rs/mth 70 Rs/mth 105 Rs/mth 105 Rs/mth

LFD I

RURAL

BPL Households 05 Rs/mth 05 Rs/mth 05 Rs/mth 05 Rs/mth





LFD II COMMERCIAL





LFD III:

Rs. 045

/inst/mth

Rs. 060

/inst/mth

Rs. 075

/inst/mth

Rs. 080

/inst/mth

LTA:

A1 < 7.5 HP

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

> 7.5 HP

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

Rs. 140

/BHP/mth

A2 < 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

> 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

A3 < 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

> 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth




(Current)

Fixed

Charge

(Proposed)

FY 2008-09

Fixed

Charge

(Proposed)

FY 2009-10

Fixed

Charge

(Proposed)

FY 2010-11

A5 < 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

> 7.5 HP

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

Rs. 010

/BHP/mth

LTP- I

0 – 10 BHP

Rs. 022

/BHP/mth

Rs. 032

/BHP/mth

Rs. 037

/BHP/mth

Rs. 045

/BHP/mth

11 - 50 BHP

Rs. 040

/BHP/mth

Rs. 060

/BHP/mth

Rs. 070

/BHP/mth

Rs. 080

/BHP/mth

51-75 BHP

Rs. 065

/BHP/mth

Rs. 095

/BHP/mth

Rs. 110

/BHP/mth

Rs. 130

/BHP/mth

76-100 BHP

Rs. 100

/BHP/mth

Rs. 145

/BHP/mth

Rs. 170

/BHP/mth

Rs. 200

/BHP/mth

> 100 BHP

Rs. 155

/BHP/mth

Rs. 225

/BHP/mth

Rs. 260

/BHP/mth

Rs. 300

/BHP/mth

LTP-II: - - - -

LTP III:

20-40 KW

Rs. 065

/kW/mth

Rs. 085

/kW/mth

Rs. 105

/kW/mth

Rs. 115

/kW/mth

40-60 KW

Rs. 100

/kW/mth

Rs. 125

/kW/mth

Rs. 155

/kW/mth

Rs. 170

/kW/mth

>60 KW

Rs. 165

/kW/mth

Rs. 200

/kW/mth

Rs. 245

/kW/mth

Rs. 270

/kW/mth

Bd > CD

Rs. 210

/kW/mth

Rs. 265

/kW/mth

Rs. 325

/kW/mth

Rs. 355

/kW/mth

WW

WW

Rs. 015

/BHP/mth

Rs. 020

/BHP/mth

Rs. 025

/BHP/mth

Rs. 030

/BHP/mth

WW1

Rs. 009

/BHP/mth

Rs. 015

/BHP/mth

Rs. 020

/BHP/mth

Rs. 020

/BHP/mth

WW3 - - - -

WW4 - - - -




(Current)

Fixed

Charge

(Proposed)

FY 2008-09

Fixed

Charge

(Proposed)

FY 2009-10

Fixed

Charge

(Proposed)

FY 2010-11

LTPSL - - - -

HT CATEGORY

CONSUMERS

HT CATEGORY

HTP-I

<= 500 KVA

Rs. 098.00

/kVA/mth

Rs. 120

/kVA/mth

Rs. 150

/kVA/mth

Rs. 170

/kVA/mth

> 500 & <= 1000

KVA

Rs. 139.00

/kVA/mth

Rs. 170

/kVA/mth

Rs. 215

/kVA/mth

Rs. 245

/kVA/mth

> 1000 & <= 2500

KVA

Rs. 208.00

/kVA/mth

Rs. 260

/kVA/mth

Rs. 320

/kVA/mth

Rs. 360

/kVA/mth

> 2500 KVA

Rs. 237.00

/kVA/mth

Rs. 295

/kVA/mth

Rs. 365

/kVA/mth

Rs. 410

/kVA/mth

Bill Demand >

Contract Demand

Rs. 369.00

/kVA/mth

Rs. 443

/kVA/mth

Rs. 548

/kVA/mth

Rs. 615

/kVA/mth

HTP-II (A)

First 1000 KVA

Rs. 173.00

/kVA/mth

Rs. 210

/kVA/mth

Rs. 250

/kVA/mth

Rs. 275

/kVA/mth

Excess of 1000

KVA

Rs. 260.00

/kVA/mth

Rs. 320

/kVA/mth

Rs. 370

/kVA/mth

Rs. 410

/kVA/mth

Bill Demand >

Contract Demand

Rs. 396.00

/kVA/mth

Rs. 480

/kVA/mth

Rs. 555

/kVA/mth

Rs. 615

/kVA/mth

HTP-II (B)

Rs. 127.00

/kVA/mth

Rs. 160

/kVA/mth

Rs. 200

/kVA/mth

Rs. 230

/kVA/mth

Bill Demand >

Contract Demand

Rs. 385.00

/kVA/mth

Rs. 480

/kVA/mth

Rs. 600

/kVA/mth

Rs. 690

/kVA/mth

HTP-III

Rs. 462

/kVA/mth

Rs. 545

/kVA/mth

Rs. 615

/kVA/mth

Rs. 655

/kVA/mth

Bill Demand >

Contract Demand

Rs. 550

/kVA/mth

Rs. 654

/kVA/mth

Rs. 738

/kVA/mth

Rs. 786

/kVA/mth




(Current)

Fixed

Charge

(Proposed)

FY 2008-09

Fixed

Charge

(Proposed)

FY 2009-10

Fixed

Charge

(Proposed)

FY 2010-11

HTP-IV

First 500 KVA

Rs. 029

/kVA/mth

Rs. 120

/kVA/mth

Rs. 150

/kVA/mth

Rs. 170

/kVA/mth

Next 500 KVA

Rs. 042

/kVA/mth

Rs. 170

/kVA/mth

Rs. 215

/kVA/mth

Rs. 245

/kVA/mth

Next 1500 KVA

Rs. 062

/kVA/mth

Rs. 260

/kVA/mth

Rs. 320

/kVA/mth

Rs. 360

/kVA/mth

Next 2500 KVA

Rs. 071

/kVA/mth

Rs. 295

/kVA/mth

Rs. 365

/kVA/mth

Rs. 410

/kVA/mth

Bill Demand >

Contract Demand

Rs. 369

/kVA/mth

Rs. 443

/kVA/mth

Rs. 548

/kVA/mth

Rs. 615

/kVA/mth

Seasonal consumers

Rs. 333.33

/kVA/mth

Rs. 375

/kVA/mth

Rs. 420

/kVA/mth

Rs. 450

/kVA/mth

Railway Traction

Rs. 160

/kVA/mth

Rs. 225

/kVA/mth

Rs. 275

/kVA/mth

Rs. 300

/kVA/mth

Bill Demand >

Contract Demand

Rs. 400

/kVA/mth

Rs. 563

/kVA/mth

Rs. 688

/kVA/mth

Rs. 750

/kVA/mth

b) Energy Charges

Sr. No. Customer Category

Energy

Charges

(Current)

Energy

Charge

(Proposed)

FY 2008-09

Energy

Charge

(Proposed)

FY 2009-10

Energy

Charge

(Proposed)

FY 2010-11

1 LFD I

URBAN

BPL Households 270 p/kWh 150 p/kWh 150 p/kWh 150 p/kWh

1-50 kWh 270 p/kWh 280 p/kWh 285 p/kWh 295 p/kWh


101 to 200 kWh 360 p/kWh 370 p/kWh 375 p/kWh 385 p/kWh


above 300 kWh 470 p/kWh 480 p/kWh 485 p/kWh 495 p/kWh




Energy

Charges

(Current)

Energy

Charge

(Proposed)

FY 2008-09

Energy

Charge

(Proposed)

FY 2009-10

Energy

Charge

(Proposed)

FY 2010-11

2 LFD I

RURAL

BPL Households 220 p/kWh 150 p/kWh 150 p/kWh 150 p/kWh





above 300 kWh 420 p/kWh 430 p/kWh 435 p/kWh 445 p/kWh

3 LFD II COMMERCIAL



Above 150 kWh 470 p/kWh 480 p/kWh 490 p/kWh 500 p/kWh

4 LFD III: 300 p/kWh 310 p/kWh 310 p/kWh 310 p/kWh

5 LTA:

A1 < 7.5 HP 000 p/kWh 000 p/kWh 000 p/kWh 000 p/kWh

> 7.5 HP 000 p/kWh 000 p/kWh 000 p/kWh 000 p/kWh







6 LTP- I

0 - 10 BHP 350 p/kWh 360 p/kWh 370 p/kWh 370 p/kWh

11 - 50 BHP 375 p/kWh 385 p/kWh 395 p/kWh 395 p/kWh




Energy

Charges

(Current)

Energy

Charge

(Proposed)

FY 2008-09

Energy

Charge

(Proposed)

FY 2009-10

Energy

Charge

(Proposed)

FY 2010-11

51-75 BHP 375 p/kWh 385 p/kWh 395 p/kWh 395 p/kWh

76-100 BHP 375 p/kWh 385 p/kWh 395 p/kWh 395 p/kWh

> 100 BHP 375 p/kWh 385 p/kWh 395 p/kWh 395 p/kWh

7 LTP-II: 400 p/kWh 420 p/kWh 420 p/kWh 430 p/kWh

8 LTP III:

20-40 KW 395 p/kWh 405 p/kWh 405 p/kWh 405 p/kWh

40-60 KW 395 p/kWh 405 p/kWh 405 p/kWh 405 p/kWh

>60 KW 395 p/kWh 405 p/kWh 405 p/kWh 405 p/kWh

Bill Demand >

Contract Demand 395 p/kWh 405 p/kWh 405 p/kWh 405 p/kWh

11 WW

WW 340 p/kWh 350 p/kWh 360 p/kWh 370 p/kWh

WW1 320 p/kWh 330 p/kWh 340 p/kWh 350 p/kWh



12 LTPSL 330 p/kWh 350 p/kWh 360 p/kWh 370 p/kWh

HT CATEGORY CONSUMERS

HT CATEGORY

1 HTP-I

<= 500 KVA 375 p/kWh 385 p/kWh 390 p/kWh 390 p/kWh

> 500 & <= 1000

KVA 375 p/kWh 385 p/kWh 390 p/kWh 390 p/kWh

> 1000 & <= 2500


> 2500 KVA 405 p/kWh 415 p/kWh 420 p/kWh 420 p/kWh

2 HTP-II (A)

First 1000 KVA 410 p/kWh 420 p/kWh 425 p/kWh 425 p/kWh




Energy

Charges

(Current)

Energy

Charge

(Proposed)

FY 2008-09

Energy

Charge

(Proposed)

FY 2009-10

Energy

Charge

(Proposed)

FY 2010-11

Excess of 1000


3 HTP-II (B) 360 p/kWh 370 p/kWh 375 p/kWh 375 p/kWh

4 HTP-III 620 p/kWh 630 p/kWh 635 p/kWh 635 p/kWh

5 HTP-IV

First 500 KVA 225 p/kWh 235 p/kWh 240 p/kWh 240 p/kWh

Next 500 KVA 225 p/kWh 235 p/kWh 240 p/kWh 240 p/kWh



7 Seasonal consumers 415 p/kWh 425 p/kWh 430 p/kWh 430 p/kWh

6 Railway Traction 455 p/kWh 465 p/kWh 465 p/kWh 465 p/kWh

Apart from the above stated revision in the tariff rates proposed by the

company, few other structural changes are also being proposed for meet the

changing needs of the consumers as well as to remove issues in the

implementation of the tariff as well as to plug any loopholes in the same. These

have been highlighted in the proposed tariff schedule attached at Annexure

in the petition. The key suggestions are summarized below:

1. A new residential consumer slab has been proposed for BPL consumers

having monthly consumption of upto 30 kWh with lower fixed and energy

charges. The BPL consumer shall have to provide a copy of the BPL Card

issued by the concerned authorities for availing the subsidized tariff.

2. The clauses explaining the applicability of a particular tariff have been

sharpened to remove ambiguities as far as possible based on the field level

experience of the Discoms

3. In LTP-1 category, a separate rate for fixed charges for billing demand

greater than contracted demand has been introduced to encourage

demand side discipline among these category of consumers as required

under the ABT regime



4. Reactive energy charges have been proposed to be introduced for all

consumers having contracted load over 10 BHP instead of the earlier

threshold of 50 BHP. The Discoms have already provided for appropriate

meters to record reactive energy usage for consumers of this category upto

10 BHP and above.

5. In streetlights category, fixed charges are proposed to be applied on a per

connection basis as opposed to per fixture basis as is currently the case as it

is not practically possible to count the number of fixtures on every

connection.

6. In HTP-1 category, it is proposed that wherever actual demand exceeds

the contract demand, it is proposed that the actual demand shall be

considered for determining the applicable slab of energy charges.

7. The Time of Use charge has been proposed to be increased to Rs. 1.00 per

unit as opposed to the current rate of Rs. 0.75 per unit to further encourage

consumers to shift their loads to off peak hours.

8. In HTP-IV category, it has been clarified that this tariff shall not be

applicable to those categories of consumers who are otherwise of

continuous nature of industry or normally operating shifts during day time

also as there have been cases of misuse of this discounted category by

certain consumers.

9. The current tariff schedule provides for a discount (of 70% over HTP 1) on the

demand charges to HTP-IV category apart from the much lower energy

charges applicable to this category. As such, whether a consumer

consumes power during the day or night time, the fixed costs incurred by

the Discoms to provide and maintain the connection remain the same.

Hence there is no justification for providing a reduced fixed charge to this

category of consumer. The lower energy charge applicable to this

category of consumer is an adequate incentive for consumers to opt for

this category wherever possible. Under the current tariff rates, the Discoms

are not even able to recover their average cost of supply from this

category thus leading to an unnecessary subsidization of this category.

10. A new category, namely – HTP V, has been proposed for HT supply to

agricultural consumers applicable specifically for High Tension Agricultural

Pumping loads of Farmer Co-operative Societies, HT Lift Irrigation Scheme

(for lifting the water from cannel/river/dam etc to supply water directly to

the fields of farmers for the agricultural purpose only). Currently, there is no

category for this class of consumers and hence a new subsidized category

with substantially lower tariff has been proposed.



11. In HTP-I and HTP II-(A) categories, a separate demand charge for billing

demand being greater than contract demand, has been introduced for

consumers with a captive power plant (CPP) to introduce discipline in the

drawl by large consumers.

12. FPPPA charge at Rs. 0.12 per unit has been considered for revenue

calculations. This rate corresponds to the FPPPA levied to consumers for the

1st and 2nd quarter of FY 2007-08 which is the period being considered as

base for the company’s power purchase expenses.

Apart from the above changes, a few other changes have also been

proposed in the tariff schedule. For further reference, the revised proposed

tariff schedule is attached as Annexure 1.

The overall movement of average revenue realizations for the four Discoms

combined over the control period is depicted below:

Table 6: Overall increase in Average Realizations from the proposed tariff

AvRR

(Existing

Tariff)

AvRR

(Proposed

Tariff)

Increase in

tariff (Rs./ Unit)

AvRR

(Existing

Tariff)

AvRR

(Proposed

Tariff)

Increase

in tariff

(Rs./

Unit)

AvRR

(Existing

Tariff)

AvRR

(Proposed

Tariff)

Increase

in tariff

(Rs./

Unit)

Overall

Increase

over the

Control

Period

(Rs./ Unit)

DOMESTIC 3.06 3.25 0.19 3.26 3.39 0.14 3.40 3.50 0.10 0.42

LFD I URBAN 3.30 3.47 0.17 3.48 3.60 0.12 3.61 3.71 0.10 0.39

LFD I RURAL 2.68 2.89 0.21 2.89 3.05 0.16 3.05 3.15 0.10 0.47

COMMERCIAL 4.82 5.10 0.28 5.07 5.25 0.18 5.22 5.36 0.14 0.59

LFD II 4.90 5.19 0.28 5.16 5.34 0.18 5.31 5.45 0.14 0.60

LFD III 3.43 3.63 0.20 3.60 3.70 0.10 3.67 3.76 0.09 0.39

AGRICULTURE 1.05 1.05 0.00 1.02 1.02 0.00 1.00 1.00 0.00 0.00

A1 1.11 1.11 0.00 1.11 1.11 0.00 1.11 1.11 0.00 0.00

A2 0.73 0.73 0.00 0.72 0.72 0.00 0.71 0.71 0.00 0.00

A3 1.02 1.02 0.00 1.02 1.02 0.00 1.02 1.02 0.00 0.00

A5 0.78 0.78 0.00 0.78 0.78 0.00 0.78 0.78 0.00 0.00

INDUSTRIAL LT 4.28 4.55 0.26 4.53 4.71 0.18 4.69 4.78 0.09 0.54

LTP I 4.16 4.41 0.25 4.40 4.57 0.18 4.56 4.65 0.09 0.52

LTP II 4.12 4.32 0.20 4.32 4.32 0.00 4.32 4.42 0.10 0.30

LTP III 4.81 5.11 0.30 5.08 5.29 0.21 5.25 5.36 0.10 0.62

WATER WORKS 2.77 2.95 0.18 2.95 3.06 0.11 3.06 3.16 0.10 0.40

WW 3.58 3.71 0.12 3.70 3.82 0.12 3.82 3.94 0.12 0.36

WW1 3.42 3.58 0.16 3.58 3.73 0.15 3.72 3.82 0.10 0.42

WW3 2.42 2.62 0.20 2.62 2.72 0.10 2.72 2.82 0.10 0.40

WW4 2.72 2.92 0.20 2.92 3.02 0.10 3.02 3.12 0.10 0.40

PUBLIC LIGHTING 3.42 3.62 0.20 3.62 3.72 0.10 3.72 3.82 0.10 0.40

INDUSTRIAL HT 4.74 5.05 0.31 5.04 5.27 0.23 5.26 5.37 0.11 0.66

HTP I 4.77 5.06 0.29 5.05 5.28 0.22 5.26 5.38 0.11 0.63

HTP II A 5.13 5.44 0.31 5.42 5.64 0.22 5.63 5.74 0.12 0.65

HTP II B 4.31 4.57 0.26 4.57 4.76 0.19 4.75 4.85 0.10 0.55

HTP III 8.53 9.02 0.50 9.00 9.39 0.38 9.36 9.55 0.19 1.07

HTP IV 2.40 3.51 1.11 3.50 3.89 0.39 3.88 4.10 0.22 1.72

SEASONAL 5.62 5.89 0.27 5.87 6.10 0.23 6.08 6.19 0.12 0.62

RAILWAYS 5.21 5.53 0.32 5.53 5.70 0.17 5.68 5.77 0.08 0.58

Total 3.20 3.38 0.18 3.36 3.49 0.13 3.48 3.55 0.07 0.38

Tariff Category

FY 2008-09 FY 2009-10 FY 2010-11

Thus, the overall increase in the average revenue realization for all tariff

categories is estimated to be 38 paise per unit over a three year period.

6 Total Revenue for the Control Period



The total revenue of the company for the Control Period including other

income and subsidies is given below.

Table 7: Total Revenue for the Control Period

Total Revenues for the Control Period Revenue

2006-07

Revenue

2007-08 at

current

Tariffs

Revenue

2008-09

at

Proposed

Tariffs

Revenue

2009-10

at

Proposed

Tariffs

Revenue

2010-11

at

Proposed

Tariffs

Revenue

2008-09

at current

Tariffs

Revenue

2009-10

at current

Tariffs

Revenue

2010-11

at current

Tariffs

Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs

Revenue from Sale of Power 217009 251812 281451 312971 343249 267924 288313 310462

Other Income Consumer Related 7106 7718 8383 9104 9888 8383 9104 9888

Non Tariff Income 14406 3576 3576 3576 3576 3576 3576 3576

Subsidies 57,023 57,384 53,464 50,293 47,594 53464 50293 47594

Other Subsidies 2,456 2,515 2,802 3,084 3,359 2802 3084 3359

Total 298001 323005 349677 379028 407667 336149 354370 374880

7 Summary of Expenditure Projections for the Control period

Given below is a summary of projected expenses for the year 2007-08.

Table 8 : Total Expenditure other than Power Purchase for the Control Period

2006-07

Actuals

2007-08

Projections

2008-09

Projections

2009-10

Projections

2010-11

Projections Particulars

Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs

O & M Costs 31282 34411 37852 41637 45801

Depreciation ** 6147 7021 8123 9356 10604

Interest on Loans &

Finance Charges 9056 11468 12003 12630 13275

Interest on Working Capital *

1499 2779 3085 3412 3732

Other Debits 301 316 332 348 366

Extraordinary Items 33 33 33 33 33

Provision for bad debts * 197 263 293 326 357

Less: Expenses

Capitalized 4343 4343 4343 4343 4343

Return on Equity 0 3729 8215 9043 9905

Provision for Tax 291 172 189 208 229

Total Expenditure

excluding power 44465 55850 65782 72650 79957

* Projected based on revenue from proposed tariff

** As per CERC norms.

8 Energy Balance

A summary of the energy balance of the company is given below:



Table 9 : Summary of Energy Balance

UGVCL

FY

06-07

FY

07-08

FY

08-09

FY

09-10

FY

10-11

Energy Demand MkWh 9590 10,245 10,937 11,555 12,221

Distribution Loss % % 15.82% 17.31% 16.31% 15.31% 14.31%

Loss Reduction Target % 0.0% 0.00% 1.00% 1.00% 1.00%

Energy Requirement MkWh 11392 12390 13068 13644 14262

Transmission losses % 4.06% 3.85% 4.09% 4.04% 3.99%

Total Units to be input MkWh 11874 12885 13625 14218 14855

Pooled losses MkWh 110 116 196 159 183

Total units for power purchase

MkWh 11985 13001 13821 14377 15037

Over all T&D losses % 19.98% 21.20% 20.87% 19.63% 18.73%

Met By

Energy Billed by GUVNL MkWh 11985 13001 13821 14377 15037

Wheeled Energy 246 295

Total Energy Drawn MkWh 12231 13296 13821 14377 15037

9 Total Cost of Power Purchase

The fixed costs of GSECL’s units are as per the Hon’ble Commission’s order for

FY 2007-08 of GSECL. These values have been considered for FY 2007-08 as well

as for each year of the control period. The variable costs considered for

GSECL’s plant have been arrived at by considering the weighted average fuel

prices and Gross Calorific Values of the fuels for the period between April to

September, 2007 and the approved operational parameters for each plant.

The plant wise variable costs so calculated have been considered without any

further escalation for the entire control period. For Central Sector stations and

IPPs, the fixed and variable costs considered are as per the average of the bills

for the first half of FY 2007-08.

Suitable assumptions have been made for the fixed and variable charges for

new stations. For coal based new plants such as GSPC’s Pipavav plant, the

variable cost has been assumed at Rs. 1.75 per unit, while for NTPC plants it has

been assumed at Rs. 1.70 per unit. Fixed charges have been assumed to be at

Rs. 1.00 per unit. For gas based plants, the variable charges have been

calculated by assuming gas price of $ 6.0 per mmbtu plus transportation

charges which results in a tariff of about Rs. 2.12 per unit. For plants coming up

through the competitive bidding process, fixed and variable costs have been

taken as per the winning bid.



Hence, the total cost of power purchase for the company for the control

period comes to the Power purchase cost through merit order plus the

Discom’s allocation of GUNVL’s revenue gap, as shown below.

Table 10: Total Cost of Power Purchase in Rs. lacs

Total Cost of Power Purchase: UGVCL 07-08 08-09 09-10 10-11

Power Purchase cost from Merit Order 269591 290995 321972 346485

GUVNL Cost + E-Urja Charge 9975 8370 8550 7024

Total 279566 299365 330522 353509

10 Capital Expenditure for the Control Period

The company incurs Capital Expenditure under various schemes i.e. Distribution

Schemes, Rural Electrification Schemes and Centrally Sponsored Schemes.

The details of estimates for Capital Expenditure for the year 2007-08 under

each of the above Scheme are as below.



Table 11 : Capital Expenditure Proposed during the Control Period

2007-08

Rs Lacs 2008-09 2009-10 2010-11

A Distribution Schemes

Normal Development Scheme 5845 6000 6300 6600

System Improvement Scheme 6000 4000 4200 4400

Jyoti Gram Yojna 400 300 310 325

Electrification of hutments 150 1072 920 590

kutir jyoti scheme 50 560 450 225

Scheme for meters 1500 2000 2100 2200

Others 250 350 450 500

Total 14195 14282 14730 14840

B Rural Electrification Schemes

TASP (Wells and Petapara) 1290 1787 1790 1795

Special Component plan 45 714 535 215

REC wells (DPB, Meter, Adivashi area, OA

& SPA etc. 200 217 235 245

BADP 50 35 40 45

Total 1585 2753 2600 2300

C Others

Energy Conservation 400 500 500 500

Independent certification agency 25 10 10 15

Total 425 510 510 515

D Non Plan Schemes

RE Non Plan (Tatkal) 1200 0 0 0

RGVY 2750 4049 3635 4064

Total 3950 4049 3635 4064

E Other new schemes

Automatic PF control panels 600 1100 1000 1000

Switchable capacitors 0 0 0 0

Aerial Bunch Conductors 200 210 215 220

HVDS in selected sub-division 700 1200 1200 1400

Hand held instruments 100 100 100 100

Automatic meter reading 500 30 35 40

GIS in cities 500 600 630 660

Automation and computerisation (IT for

Consumer Greivance redressal) 600 300 310 320

Underground Cables 800 1000 1200 1400

Load Shedding Transformers 800 800 500 500

Other renovation work 800 1200 1400 1500

Misc. Civil work 300 300 300 300

Other Schemes (Nirmal Gujarat) 100 100 100 100

Total 6000 6940 6990 7540

F Other Schemes

Urban Development 800 900 1200 1000

Total 800 900 1200 1000

G Golden Goal Scheme

Pending Agriculture Connections 0 4454 4454 4454

Capital Expenditure Total 26,955 33,889 34,119 34,713

Capital Expenditure

Control Period



The above mentioned capital expenditure would be funded as follows:

Table 12 : Proposed Funding of capital expenditure

Source of Capex 2007-08 2008-09 2009-10 2010-11

Consumer Contribution 5284 5391 5616 5841

Grants 4980 9175 8397 7943

Equity 9901 9385 9815 10237

Additional Equity 0 0 0 0

Loans 6728 9938 10292 10692

GoG Loans 0 0 0 0

Total Capital Expenditure 26893 33889 34119 34713

11 Aggregate Revenue Requirement for the Control Period

The ARR for the control period, the estimated revenues from the proposed

tariff and the resultant gap/ surplus situation for the Discom are tabulated

below.

Table 13: Aggregate Revenue Requirement and Gap for the Control Period

FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11

ARR for the Control Period

Projected at current

Tariffs

Projected at

Proposed Tariffs

Projected at

Proposed Tariffs

Projected at

Proposed Tariffs

Rs. Lacs Rs. Lacs Rs. Lacs Rs. Lacs

Total Cost of Power Purchase

279566 299365 330522 353509

O&M Expenses 34411 37852 41637 45801

Depreciation 7021 8123 9356 10604

Interest on Loans & Finance

Charges 11468 12003 12630 13275

Interest on Working Capital 2779 3085 3412 3732

Other Debits 316 332 348 366

Extraordinary Items 33 33 33 33

Provision for bad debts 263 293 326 357

Less Interest & Expenses

Capitalized 4343 4343 4343 4343

Sub Total 331514 356743 393921 423333

Return on Equity 3729 8215 9043 9905

Provision for Tax 172 189 208 229

Total Expenditure 335415 365148 403172 433466

Less: non tariff income 3576 3576 3576 3576

Aggregate revenue

requirement 331839 361571 399596 429890



Revenue from sale of power 251812 281451 312971 343249

Other Income consumer related

7718 8383 9104 9888

Total revenue before

subsidy 259530 289834 322075 353137

Subsidy 57384 53464 50293 47594

Other Subsidies 2515 2802 3084 3359

Total revenue after subsidy 319428 346101 375452 404090

Gap 12411 15471 24144 25800

12 Prayers

It is respectfully prayed to the Hon'ble Commission;

1. To consider the aggregate revenue requirements for the first control

period of FY 2008-09 to FY 2010-11 as proposed in this petition and given

approval for the same.

2. To consider the proposal for revision in the tariff structure and approve

the same.

3. To recognize the revenue gap between the aggregate revenue

requirement and the total revenues from the proposed tariff as

“Regulatory Asset” to be recovered through tariffs in future.

4. To approve the capital expenditure plan for the Control Period as well as

the revised plan for FY 2007-08.

5. To approve the merging of the existing FPPPA charges being collected

by the company at Rs. 0.12/- per unit, with the energy charges of each

of the tariff slabs or alternatively, it’s continuation as FPPPA charge

levied on all consumers apart from BPL consumers. In the latter case, any

FPPPA charge per unit due to the Discom over the new base approved

by the Hon’ble Commission shall be over and above the current

amount.

6. To approve the pooling of the approved aggregate gains/losses of the

four Discoms i.e., DGVCL, MGVCL, UGVCL and PGVCL, on account of

controllable factors, which shall be dealt with in the following manner:

a. One-third of the amount shall be passed on as a rebate in tariff to

all consumers of the four Discoms over such period as may be

specified in the order of the Commission under regulation 9.7;

b. The balance two-third may be allocated equitably to the four

Discoms based on mutual agreement.



7. Pass any other order as Hon’ble Commission may deem fit and

appropriate under the circumstances of the case and in the interest of

justice.

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