Before
The Hon’ble Jharkhand State Electricity Regulatory Commission,
Ranchi
Petition
For
Annual Revenue Requirement and Tariff
Determination for MYT Control Period
FY 16-17 to FY 20-21
Submitted By
Jharkhand Bijli Vitran Nigam Limited (JBVNL)
Dhurwa, HEC, Ranchi
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 1
Before the Hon’ble Jharkhand State Electricity Regulatory Commission,
Ranchi
Filing Number: _____
Case Number: _____
IN THE MATTER OF: Filing of Petition for approval of Annual Revenue
Requirement and Tariff Determination for MYT
Control Period FY 16-17 to FY 20-21 for the Licensee
under Section 45, 46, 61, 62, 64 and 86 of the
Electricity Act, 2003 and as per the regulations of
Jharkhand State Electricity Regulatory Commission
(JSERC) Terms and Conditions for Determination of
Distribution Tariff) Regulations, 2015
AND IN THE MATTER
OF:
Jharkhand Bijli Vitran Nigam Limited (hereinafter
referred to as "JBVNL", or “erstwhile JSEB -
Distribution function” which shall mean for the
purpose of this petition the “Licensee” or “Petitioner”)
having its registered office at HEC, Dhurwa, Ranchi
The Petitioner respectfully submits hereunder:
1. The erstwhile Jharkhand State Electricity Board (“Board” or “JSEB”) is a
statutory body constituted under Section 5 of the Electricity (Supply) Act,
1948 and was engaged in electricity generation, transmission, distribution
and related activities in the State of Jharkhand.
2. Jharkhand Urja Vikas Nigam Ltd. (herein after to be referred to as
“JUVNL” or “the Holding company”) has been incorporated under Indian
Companies Act, 1956 pursuant to decision of Government of Jharkhand
to reorganize erstwhile Jharkhand State Electricity Board (herein after
referred to as “JSEB”). The Petitioner submits that the said reorganization
of the JSEB has been done by Government of Jharkhand pursuant to “Part
XIII – Reorganization of Board” read with section 131 of the Electricity Act
2003. The Holding company has been incorporated on 16th September
2013 with the Registrar of Companies, Jharkhand, Ranchi and has
obtained Certificate of Commencement of Business on 12th November
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 2
2013.
3. Jharkhand Bijli Vitran Nigam Ltd. (herein after to be referred to as “JBVNL”
or “the Petitioner” or erstwhile “JSEB-Distribution function” has been
incorporated on 23rd October 2013 with the Registrar of Companies,
Jharkhand, Ranchi and has obtained Certificate of Commencement of
Business on 28th November 2013. The Petitioner is a Company
constituted under the provisions of Government of Jharkhand, General
Resolution as notified by transfer scheme vide notification no. 8, dated 6th
January 2014. The Distribution Company - Jharkhand Bijli Vitran Nigam
Ltd. is duly registered with the Registrar of Companies, Ranchi on 23rd
October 2013
4. Pursuant to the enactment of the Electricity Act, 2003, every utility is
required to submit its Aggregate Revenue Requirement (ARR) for control
period and Tariff Petitions as per procedures outlined in section 61, 62
and 64, of Electricity Act 2003, and the governing regulations thereof.
5. The present petition is being filed by the newly formed company before
the Hon’ble Commission for approval of the projected ARR and Tariff
determination for FY 16-17 to FY 20-21 of the Control period as per the
Electricity Act, 2003 and as per the provisions of the regulations issued by
the Hon’ble Jharkhand State Electricity Regulatory Commission (JSERC)
(Terms and Conditions For Determination of Distribution Tariff)
Regulations, 2015.
6. JBVNL along with this petition is submitting the regulatory formats with
data & information to an extent applicable and would make available any
further information/ additional data required by the Hon’ble Commission
during the course of tariff determination process.
Prayers to the Commission
JBVNL respectfully prays that the Hon’ble Commission may
1. Admit this Petition filed by JBVNL.
2. Consider the submissions and approve Aggregate Revenue Requirement for
MYT Control Period FY 16-17 to FY 20-21 and Tariff Determination for the
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 3
period FY 16-17 to FY 20-21.
3. Approve the revenue gap and appropriate tariff increase as detailed in the
enclosed proposal
4. Pass suitable orders for implementation of the tariff proposals for the FY 16-
17 for making it applicable from April 1, 2016 onwards.
5. Approve the terms and conditions of Tariff Schedule and various other
matters as and the proposed changes therein.
6. Condone any inadvertent omissions/ errors/ shortcomings and permit JBVNL
to add/ change/ modify / alter this filing and make further submissions as may
be required at a future date.
7. Pass such orders as the Hon’ble Commission may deem fit and proper,
keeping in view the facts and circumstances of the case;
Jharkhand Bijli Vitran Nigam Limited
Petitioner
Ranchi
Dated:
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 4
Contents
List of Figures ................................................................................................................................................................. 5
List of Tables .................................................................................................................................................................. 6
1. Introduction and Background .............................................................................................................................. 8
2. Annual Revenue Requirement for MYT Control Period (FY 16-17 to FY 20-21) ....................................... 12
3. Segregation into Wheeling and Retail Supply business ................................................................................ 33
4. Revenue Gap and Treatment of Revenue Gap ............................................................................................... 36
5. Tariff Proposal ....................................................................................................................................................... 40
6. Demand Side Management (DSM) Fund Creation and levy of DSM Charge ............................................ 66
7. Schedule of Charges ............................................................................................................................................. 71
8. Terms and Condition of Supply ......................................................................................................................... 82
9. Consideration from Previous Tariff Order ....................................................................................................... 96
10. Prayers to Hon’ble Commission ........................................................................................................................ 98
11. Annexures .............................................................................................................................................................. 99
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 5
List of Figures
Figure 1: Tariff Comparison of JBVNL with different sates of India .................................................. 10
Figure 2: AT&C Losses and Collection Efficiency (%age) ................................................................ 22
Figure 3: Action Plan for AT&C and T&D Loss Reduction ................................................................ 22
Figure 4: Proposed DSM Fund Model............................................................................................... 69
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 6
List of Tables
Table 1: Sales in MUs- Historical ...................................................................................................... 13
Table 2: Projection of Sales in MUs .................................................................................................. 13
Table 3: Connected Load Projections (KW) ...................................................................................... 14
Table 4: Power Purchase Quantum in MUs for FY 15-16 ................................................................ 14
Table 5: Power Purchase Quantum in MUs ...................................................................................... 16
Table 6: IEX price Index in Rs/KWh .................................................................................................. 17
Table 7: Power Purchase rate in Rs/KWh ........................................................................................ 18
Table 8: Power Purchase cost in Crores .......................................................................................... 19
Table 9: Renewable Purchase Obligations (RPO) ............................................................................ 21
Table 10: Targets AT&C Losses, Collection Efficiency and Billing Efficiency .................................. 23
Table 11: Energy balance ................................................................................................................. 24
Table 12: Employee Cost & Terminal Benefit ................................................................................... 25
Table 13: A&G Expenses .................................................................................................................. 26
Table 14: R&M Expenses ................................................................................................................. 26
Table 15: Gross Fixed Assets and Depreciation ............................................................................... 27
Table 16: Interest on Working Capital ............................................................................................... 28
Table 17: Equity Schedule & RoE ..................................................................................................... 29
Table 18: Bad Debts due to collection efficiency .............................................................................. 30
Table 19: Non-Tariff Income ............................................................................................................. 31
Table 20: Projected Revenue on Current Tariff for each year of MYT Control Period (Rs. Crores) 31
Table 21: Projected Aggregate Revenue for MYT Control Period .................................................... 32
Table 22: ARR Components into Wheeling and retail business ....................................................... 33
Table 23: ARR of Retail Supply Business (Rs. Cr.) .......................................................................... 34
Table 24: ARR of Wheeling Business (Rs. Cr.) ................................................................................ 34
Table 25: Revenue Gap on Current Tariff for MYT Period (Rs. Crores)........................................... 36
Table 26: Revenue Surplus/Gap for the year FY 16-17.................................................................... 36
Table 27: Revenue at Proposed Tariff .............................................................................................. 37
Table 28: Revenue Gap at Proposed Tariff ...................................................................................... 38
Table 29: Summary of Tariff Proposal .............................................................................................. 40
Table 30: Existing and Proposed Tariff - DS ..................................................................................... 43
Table 31: Comparison of existing domestic urban metered tariffs with approved tariffs in other States
as per the applicable recent tariff orders ........................................................................................... 45
Table 32: Existing and Proposed Tariff - NDS .................................................................................. 49
Table 33: Ratings of Capacitors for Inductive Load .......................................................................... 50
Table 34: Comparison of existing Non-domestic/ Commercial tariffs with approved tariffs in other
States as per the applicable recent tariff orders ............................................................................... 51
Table 35: Existing and Proposed Tariff - LTIS .................................................................................. 53
Table 36: Ratings of Capacitors for Inductive Load .......................................................................... 54
Table 37: Existing and Proposed Tariff - IAS .................................................................................... 56
Table 38: Comparison of existing IAS tariffs with approved tariffs in other States as per the applicable
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 7
recent tariff orders ............................................................................................................................. 57
Table 39: Existing and Proposed Tariff - HTS .................................................................................. 58
Table 40: Existing and Proposed Tariff - HTSS ................................................................................ 60
Table 41: Existing and Proposed Tariff - RTS .................................................................................. 62
Table 42: Existing and Proposed Tariff - RTS .................................................................................. 63
Table 43: Existing and Proposed Tariff – MES ................................................................................. 64
Table 44: Estimated collection from levy of proposed Energy Conservation Charge ....................... 67
Table 45: Inflation of last 10 Years.................................................................................................... 72
Table 46: Minimum wages in Jharkhand and Bihar .......................................................................... 73
Table 47: Charges related to Service Connection ............................................................................ 73
Table 48: Service Line Charges ........................................................................................................ 76
Table 49: Development Charges ...................................................................................................... 77
Table 50: Charges related to meters................................................................................................. 77
Table 51: supervision charges and interest on security deposits ..................................................... 79
Table 52: New Charges .................................................................................................................... 79
Table 53: Voltage Rebate ................................................................................................................. 84
Table 54: Load Factor Rebate .......................................................................................................... 84
Table 55: Installation of Shunt capacitors ......................................................................................... 85
Table 56: Consumer wise Load Factor ............................................................................................. 87
Table 57: Tariff Structure of Seasonal Supply .................................................................................. 88
Table 58: Tariff Schedule for CPP consumers .................................................................................. 93
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 8
1. Introduction and Background
Introduction
1.1 Jharkhand Bijli Vitran Nigam Ltd. (herein after to be referred to as “JBVNL” or “the
Petitioner” or “erstwhile JSEB-Distribution function) has been incorporated under
Indian Companies Act, 1956 pursuant to decision of Government of Jharkhand to
reorganize erstwhile Jharkhand State Electricity Board (herein after referred to as
“JSEB”).
1.2 The Petitioner submits that the said reorganization of the JSEB has been done by
Government of Jharkhand pursuant to “Part XIII – Reorganization of Board” read
with section 131 of The Electricity Act 2003. The Petitioner is a Company constituted
under the provisions of Government of Jharkhand, General Resolution as notified by
transfer scheme vide notification no. 8, dated 6th January 2014, and is duly
registered with the Registrar of Companies, Ranchi on 16th September 2013, having
CIN as U40108JH2013SGC001603. The Distribution Company - Jharkhand Bijli
Vitran Nigam Ltd. is duly registered with the Registrar of Companies, Ranchi on 23rd
October 2013, having CIN as U40108JH2013SGC001702. The distribution
company, Jharkhand Bijli Vitran Nigam Ltd has been incorporated on 23rd October
2013 with the Registrar of Companies, Jharkhand, Ranchi and has obtained
Certificate of Commencement of Business on 28th November 2013.
1.3 The Petitioner is a Distribution Licensee under the provisions of the Electricity Act,
2003 (EA, 2003) having license to supply electricity in the State of Jharkhand. The
Petitioner is functioning in accordance with the provisions envisaged in the Electricity
Act, 2003 and is engaged, within the framework of the Electricity Act, 2003, in the
business of Distribution of Electricity to its consumers situated over the entire State
of Jharkhand.
1.4 Section 62 of the Electricity Act 2003 requires the licensee to furnish details as may
be specified by the Commission for determination of tariff. In addition, as per the
regulations issued by the Hon’ble Commission, JBVNL is required to file for all
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 9
reasonable expenses it believes it would incur over the next financial year and seek
the approval of the Hon’ble Commission for the same. The filing is to be done based
on the projections of the expected revenue and costs, which should be arrived at by
a reasonable methodology adopted by the Petitioner.
1.5 The Hon’ble Commission on 22nd January 2016 issued JSERC (Terms and
Conditions for Determination of Distribution Tariff) Regulations, 2015 (hereinafter
referred as JSERC Tariff Regulations 2015) which is applicable for Control Period
from 1st April 2016 to 31st March 2021 for elements of ARR.
Background
1.6 Jharkhand is home to nearly 68 Lac households, out of which ~38 Lac Households
(56%) are already electrified. Presently, out of total 50.9 Lac rural HHs, nearly 23
Lac rural HHs are electrified (~45%), while out of 17.1 Lac urban HHs, nearly 15.4
Lac urban HHs are electrified (90%) in the State. The remaining 28.2 Lac rural HHs
and ~1.8 lac Urban HHs are yet to be electrified. Considering the national HH
electrification level of 72%, a significant emphasis on electricity access is required
by the State.
1.7 The consumers of Jharkhand are being served by 5 utilities, viz. JBVNL, Damodar
Valley Corporation, JUSCO, TSL and SAIL Bokaro. Amongst the 5 distribution
utilities, JBVNL with energy sales of nearly 9.7 BU in FY 16-17 is the largest utility,
while DVC with its sizeable base of industrial consumers in the DVC command area
is the 2nd largest power distribution utility. Other utilities (JUSCO, Tata Steel and
SAIL Bokaro) have relatively small share in their share of energy handled in the State
and are operating in their respective limited license areas.
1.8 JBVNL has recently, on 10th October 2015, has signed the Power for All (PFA)
program aiming to achieve 24X7 availability of reliable power to all households,
industrial, commercial establishments. Also, JBVNL along with the Government of
India and the State of Jharkhand have entered into a Memorandum of Understanding
(MOU) under the Scheme UDAY – “Ujjwal Discom Assurance Yojana” on 5th
January 2016 UDAY scheme primarily focus on revival of JBVNL and aims at
achieving better financial health and consistent operations of the utility.
1.9 In order to realize the vision of Hon'ble Prime Minister of India, JBVNL aims to
achieve 100% access and 24X7 electricity availability to all households in the State.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 10
In order to meet the challenge of providing 24X7 Power for All, JBVNL has prepared
a detailed plan with focus on developing robust capital assets while ensuring
achievement of operational efficiency. Based on the above premise, this MYT
Petition presents the projections of various operational and financial parameters and
emphasises on the requirement of rationalizing the tariff in the State to make it
reflective of actual cost of supply.
1.10 It is pertinent to mention that Jharkhand is one of the State with lowest tariffs in the
country, especially for domestic consumers, as detailed in table below:
Figure 1: Tariff Comparison of JBVNL with different sates of India
With the electrification of additional rural HHs to the tune of 28 lacs there will be a
significant impact on the Average Revenue Recovery, which either needs to be
mitigated by adequate increase and rationalization of tariff or through government
support or through cross-subsidization. Therefore, It is humbly submitted that the
Hon’ble Commission may kindly consider the enormous mission of electrification to
the last mile in State and the expected impact on the financial position of JBVNL,
while approving the ARR and fixing the tariff.
1.11 The lower level of tariff along with the existing legacy of high AT&C losses and
regulatory disallowances, have led to heavy dependence of JBVNL on Revenue Gap
Funding (RGF) by the State. However, the Hon’ble Commission in its Tariff Orders
has always considered the RGF to be utilized towards reduction of ARR. This has
led to double whammy for JBVNL and the disallowances have increased. The State
Government vide letter No. 01/350 dated 14.07.2014 has already notified for
utilization of RGF first towards disallowance and the remaining RGF funds may be
4.17
5.75
4.87 4.72
6.53
5.29
1.98
4.12
3.28
3.97
5.81
5.12
Jharkhand Chhatishgarh Bihar Odisha Maharashtra MadhyaPradesh
Overall tariff Domestic Tariff
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 11
utilized towards reduction of tariff for particular category of consumers.
1.12 It is submitted that the Petitioner is committed towards improving the electricity
availability in the State, while achieving the operational turnaround for a sustained
business model in future and reduced dependence on the State Government
finances. A slew of measures are being undertaken and activities are being carried
out a considerable level to achieve the greater goal of becoming a sustainable power
utility.
1.13 It is also submitted that JBVNL endeavours to strive on a mission of sustainable
development by encouraging efficient use of electricity in the State. Therefore,
JBVNL proposes to create a Demand Side Management Fund and a very small
amount has been proposed to be levied, in addition to the approved tariff, for each
consumer category. The funds so collected shall be utilized completely towards
designing and promoting the Demand Side Management programs in the State,
which may kindly be considered by the Hon’ble Commission while approving the
tariff.
1.14 The following sections of the Petition presents the details of projections of Aggregate
Revenue Requirement, underlying approach & methodology and rationale for
proposed ARR and Tariff.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 12
2. Annual Revenue Requirement for MYT Control Period (FY 16-17 to FY 20-21)
2.1 JBVNL had filed a Business plan for the MYT Control period FY 16-17 to FY 20-21
along with requisite details as provided in JSERC (Terms and Conditions for
Determination of Distribution Tariff) Regulations 2015.
2.2 The present Petition has been prepared in line with the Business plan submitted to
the Hon’ble Commission. Based on the above mentioned regulations, this MYT
Petition is being filed by the Petitioner for the Control Period i.e. FY 16-17 to FY 20-
21. This chapter provides the details of the expenditure estimated by JBVNL for the
each of the year of the Control Period from FY 16-17 to FY 20-21.
2.3 The Petitioner has projected elements of ARR for Control Period FY 16-17 to FY 20-
21 based on the provisions of JSERC (Terms and Conditions for Determination of
Distribution Tariff) Regulations 2015 and considering figures for previous years.
Energy Sales and Connected Load
2.4 For projecting the sales for MYT Period from FY 16-17 to FY 20-21, the Petitioner
has computed the 4 year CAGR based on the historical data of FY 11-12 to FY 15-
16. This category wise CAGR has been then applied on the estimated sales for FY
16-17 to FY 20-21. However, for projecting the energy sales for domestic
consumers, the existing energy consumption for each domestic consumer is
estimated. The year on year demand of domestic consumers is calculated and
multiplied by the total consumers forecasted for the respective year to arrive on the
total sales of domestic consumers
2.5 The Petitioner would further like to submit that this growth trend of increase in sales
has been considered as it signifies the best possible projections as per the
experience of the Petitioner and latest per available data. Also, wherever the trend
has seemed unreasonable or unsustainable, the growth factors have been
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 13
appropriately modified by JBVNL, to arrive at more realistic projections.
2.6 JBVNL holds the high consumer base of around 28.51 Lacs consumers with total
energy sales of around 8,450 MUs in FY 15-16. It can be noted that during FY 15-
16, the domestic consumers contributes nearly about 54% in the total energy mix,
while HT consumers holds 27% and remaining energy consumption is done by LT,
Commercial, IAS and other consumer categories.
Table 1: Sales in MUs- Historical
JBVNL FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16
Domestic 2,483.32 2,888.55 3,318.50 3,735.40 4,557.19
Commercial/Non
Domestic 339.84 339.21 392.42 426.65 460.26
Public Lighting / SS 131.69 127.18 176.59 140.50 143.57
Irrigation / IAS 64.78 67.71 79.96 87.00 95.99
MES 15.00 15.00 15.05 15.31 15.57
Industrial LT / LTIS 165.05 157.27 181.81 174.98 178.42
Industrial HT / HTS / S 2,221.90 2,532.67 2,359.40 2,308.45 2,338.04
Railway / RTS 641.20 658.73 653.61 656.50 661.68
Inter State Sales 435.41 473.79 - -
Total 6,498.19 7,260.11 7,177.34 7,544.79 8,450.72
2.7 JBVNL has witnessed a significant growth in the total Sales across all categories in
the last five years, as can be seen in the table above. It is pertinent to note that since
2011, JBVNL has been able to considerably increase the availability of power,
because of which the sales of JBVNL have been able to grow at a rapid rate.
2.8 It is important to mention that the electrification of un-electrified HHs in the States
will lead to a significant change in the existing sales mix of JBVNL. The share of
domestic sales in total sales is expected to increase to 73% in FY 20-21 from existing
54% in FY 15-16. It is submitted that the consumer mix is an important determinant
of the financial health of a utility and with the deteriorating consumer mix, the tariff
rationalization becomes inevitable. The tariff for the domestic category should also
move towards being closer to the average cost of supply to reduce the cross-subsidy
gap, in line with the requirements of National Tariff Policy.
Table 2: Projection of Sales in MUs
JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Domestic 6,025.51 8,177.35 11,173.35 11,825.34 12,559.49
Commercial/Non
Domestic 497.08 536.85 563.69 591.88 621.47
Public Lighting / SS 146.70 149.90 153.17 156.51 159.93
Irrigation / IAS 303.00 519.00 736.10 800.79 865.48
MES 15.73 15.88 16.04 16.20 16.36
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JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Industrial LT / LTIS 181.93 185.51 189.16 192.88 196.68
Industrial HT / HTS / S 2,368.01 2,398.36 2,429.10 2,460.24 2,491.78
Railway / RTS 222.00 222.00 222.00 222.00 222.00
Total 9,759.95 12,204.85 15,482.61 16,265.85 17,133.19
2.9 The Petitioner requests Hon’ble Commission to approve proposed energy sales and
connected load as per the proposal of Petitioner.
2.10 Based on the year on year growth of consumers and their energy sales, connected
load is forecasted for FY 16-17 to FY 20-21 as detailed in the table below.
Table 3: Connected Load Projections (KW)
JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Domestic 3,792,357 4,952,955 6,512,346 6,696,884 6,976,525
Commercial/Non
Domestic 505,670 553,383 605,597 662,737 725,269
Public Lighting / SS 15,645 15,713 15,782 15,851 15,920
Irrigation / IAS 220,269 377,604 534,939 582,140 629,340
PWW 5,680 5,680 5,680 5,680 5,680
Industrial LT / LTIS 285,285 289,756 294,297 298,909 303,594
Industrial HT / HTS/ S 943,038 966,976 984,424 1,009,394 1,034,994
Railway / RTS 1,142 1,142 1,142 1,142 1,142
Total 5,769,086 7,163,210 8,954,207 9,272,737 9,692,464
2.11 The projection of connected load of different consumer categories has been done
based on the existing load per consumer, which has been assumed to increase in
the existing proportion.
Power Purchase Quantum and Cost
2.12 For projecting the power purchase quantum for MYT period from FY 16-17 to FY 20-
21, the existing energy availability based on provisional power purchase of FY 15-
16 has been considered, with certain adjustments based on the relevant information
about availability of source of generation. The provisional figures of power purchase
quantum for FY 15-16 used for projection are provided in the table below.
Table 4: Power Purchase Quantum in MUs for FY 15-16
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 15
Particulars Power Purchase Quantum
FY 15-16
NTPC
Farrakka 825.38
Farrakka III 188.88
Khalagaon I 184.93
Talcher 498.19
Khalagaon II 190.08
Barh 237.10
Total 2,124.56
NHPC
Rangit 45.79
Teesta 329.69
Total 375.48
PTC
Chukha 203.79
Tala 405.61
Total 609.40
Total Central Sector 3,109.44
Others
DVC 4,764.93
STOA 15.11
ERLDC(APNRL)
DVC STOA 109.79
STOA 15.11
Total Others 4,913.35
State Sector
PTPS 460.37
PTPS-NTPC Phase-1 -
PTPS-NTPC Phase-2 -
SHPS 55.19
TVNL 2,266.75
Total State Sector 2,782.31
Private
Inland Power 422.94
APNRL 12% 458.00
APNRL 13% 496.00
APNRL STOA -
Total Private Sector 1,376.94
Other RE
Solar IPPs 16.87
Solar REC 7.60
JREDA -
RE Others -
Total RE 24.47
PGCIL -
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 16
Particulars Power Purchase Quantum
FY 15-16
Posoco (ERLDC) -
UI Payable 20.45
UI Receivable 153.00
Grand Total 12,226.97
2.13 The Regulation 5.19 of JSERC MYT Regulations, 2015 provides for the projection
of Sales and Power Purchase Cost, as below:
“Source wise quantum of power purchase shall be computed on the basis of
estimated sales and distribution loss targets. The source wise cost of power
purchase shall be calculated on the basis of rates approved by the appropriate
Commission or as per rates discovered under appropriate mechanism under
Electricity Act 2003 and subsequent amendments thereof.”
2.14 In line with above, the Petitioner has computed the source wise quantum of power
purchase and humbly request the Hon’ble Commission to approve the same.
Accordingly, the Power Purchase Quantum (MUs) for FY 16-17 to FY 20-21 is
detailed in the table below.
Table 5: Power Purchase Quantum in MUs
Particulars Power Purchase
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
NTPC
Farrakka 900.00 900.00 900.00 700.00 700.00
Farrakka III 200.00 200.00 200.00 100.00 100.00
Khalagaon I 184.93 184.93 184.93 184.93 184.93
Talcher 498.19 498.19 498.19 498.19 498.19
Khalagaon II 190.08 190.08 190.08 190.08 190.08
Barh 250.00 250.00 250.00 100.00 100.00
NTPC Darlipalli STPS - - 585.00 742.50 742.50
NTPC Nabinagar - 367.20 367.20 367.20 367.20
NTPC North Karanpura - - 867.13 2,585.77 2,585.77
KBUNL Kanti TPS 32.00 73.44 73.44 73.44 73.44
Total 2,255.20 2,663.84 4,115.97 5,542.11 5,542.11
NHPC
Rangit 45.79 45.79 45.79 45.79 45.79
Teesta 329.69 329.69 329.69 329.69 329.69
Total 375.48 375.48 375.48 375.48 375.48
PTC
Chukha 210.00 210.00 210.00 210.00 210.00
Punatsangchhu-II HEP - 488.13 533.44 534.90 533.44
Tala 405.61 405.61 405.61 405.61 405.61
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Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 17
Particulars Power Purchase
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Total 615.61 1,103.75 1,149.05 1,150.51 1,149.05
Total Central Sector 3,246.29 4,143.07 5,640.51 7,068.11 7,066.65
Others
DVC 5,100.00 5,300.00 5,300.00 4,100.00 4,000.00
STOA - 618.00 - - -
Total Others 5,100.00 5,918.00 5,300.00 4,100.00 4,000.00
State Sector
PTPS 460.37 460.37 460.37 460.37 460.37
PTPS-NTPC Phase-1 - 478.00 1,782.00 1,782.00 2,606.00
SHPS 55.19 55.19 55.19 55.19 55.19
TVNL 2,266.75 2,266.75 2,266.75 2,266.75 2,266.75
Total State Sector 2,782.31 3,260.31 4,564.31 4,564.31 5,388.31
Private
Inland Power 422.94 422.94 422.94 422.94 422.94
APNRL 12% 458.00 458.00 458.00 458.00 458.00
APNRL 13% 496.00 496.00 496.00 496.00 496.00
APNRL STOA 85.00 - - - -
Total Private Sector 1,461.94 1,376.94 1,376.94 1,376.94 1,376.94
Other RE
Solar IPPs 16.87 16.87 16.87 16.87 16.87
Solar REC 13.14 13.14 13.14 13.18 13.14
JREDA 163.13 314.98 561.97 831.09 977.52
RE Others 643.80 996.63 1,548.26 2,104.99 2,216.58
Total RE 836.94 1,341.61 2,140.24 2,966.12 3,224.11
PGCIL - - - - -
Posoco (ERLDC) - - - - -
Grand Total 13,427 16,040 19,022 20,075 21,057
2.15 In order to compute the power purchase expenses for MYT period from FY 16-17 to
20-21, the per unit rate of power purchase for FY 15-16 has been considered, which
is escalated by 5% based on the inflation factor and past few year trends of power
purchase cost escalation.
2.16 The transmission charges for PGCIL and ERLDC for control period have been
computed by applying 10% escalation over actual transmission charges of FY 15-
16.
2.17 The power purchase cost of short term power is based on the average of last 5 year
trend of IEX (India Energy Exchange) prices, estimated at Rs 3.21/KWh, as detailed
in the table below.
Table 6: IEX price Index in Rs/KWh
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 18
IEX Price
Index FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16
5 year
Average
Price in
Rs/KWh 3.56 3.48 2.80 3.51 2.73 3.21
* source-IEX
2.18 For the power purchase rate of renewable sources, JBVNL has taken an average
bidding rate quoted by all 23 bidders in the recent bidding held through JREDA for
1,200 MW solar IPPs and an average price of Rs.6.0/KWh is considered for power
purchase rate through non-solar renewable sources as taken through MNRE.
2.19 The following table provides the detailed power purchase rate forecasted for the FY
16-17 to FY 20-21 for all sources are provided in the table below.
Table 7: Power Purchase rate in Rs/KWh
Particulars Power Purchase Rate
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
NTPC
Farrakka 3.87 4.07 4.27 4.49 4.71
Farrakka III 5.09 5.35 5.61 5.90 6.19
Khalagaon I 3.65 3.84 4.03 4.23 4.44
Talcher 2.30 2.41 2.54 2.66 2.80
Khalagaon II 3.44 3.62 3.80 3.99 4.19
Barh 6.25 6.56 6.89 7.23 7.59
NTPC Darlipalli STPS 4.63 4.86 5.11
NTPC Nabinagar 4.63 4.86 5.11 5.36
NTPC North Karanpura 4.63 4.86 5.11
KBUNL Kanti TPS 4.73 4.96 5.21 5.47 5.74
Total
NHPC
Rangit 3.16 3.32 3.48 3.66 3.84
Teesta 2.48 2.60 2.73 2.87 3.01
Total
PTC
Chukha 2.09 2.29 2.29 2.29 2.29
Punatsangchhu-II HEP 3.31 3.47 3.65 3.83
Tala 2.22 2.22 2.22 2.22 2.22
Total
Total Central Sector
Others (outside Boundaries)
DVC 5.12 5.38 5.65 5.93 6.23
STOA 3.37 3.54 3.72 3.90 4.10
Total Others
State Sector
PTPS 4.73 4.96 5.21 5.47 5.74
PTPS-NTPC Phase-1 4.50 4.50 4.50 4.50
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Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 19
Particulars Power Purchase Rate
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
SHPS 4.20 4.41 4.63 4.86 5.11
TVNL 3.69 3.88 4.07 4.27 4.49
Total State Sector
Private
Inland Power 4.36 4.58 4.81 5.05 5.30
APNRL 12% 2.40 2.52 2.65 2.78 2.92
APNRL 13% 5.05 5.30 5.57 5.85 6.14
APNRL STOA 5.00
Total Private Sector
Other RE
Solar IPPs 17.96 17.96 17.96 17.96 17.96
Solar REC 5.50 5.50 5.50 5.50 5.50
JREDA 6.36 6.36 6.36 6.36 6.36
RE Others 6.00 6.00 6.00 6.00 6.00
Total RE
PGCIL - - - - -
POSOCO (ERLDC) - - - - -
Average Rate 4.40 4.57 4.82 4.96 5.12
2.20 Considering the power purchase quantum and rate from different sources, a detailed
power purchase cost of all sources for FY 16-17 to FY 20-21 is provided in the table
below. It can be noted from the table below that power purchase cost is expected to
increase form Rs. 5,905.30 Crs in FY 16-17 to Rs. 10,791 in FY 20-21.
Table 8: Power Purchase cost in Crores
Particulars Power Purchase Cost
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
NTPC
Farrakka 348.71 366.14 384.45 313.97 329.66
Farrakka III 101.85 106.94 112.29 58.95 61.90
Khalagaon I 67.57 70.95 74.50 78.22 82.13
Talcher 114.56 120.29 126.30 132.62 139.25
Khalagaon II 65.46 68.74 72.17 75.78 79.57
Barh 156.19 164.00 172.20 72.32 75.94
NTPC Darlipalli STPS - - 270.88 361.01 379.06
NTPC Nabinagar - 170.03 178.53 187.46 196.83
NTPC North Karanpura - - 401.53 1,257.21 1,320.07
KBUNL Kanti TPS 15.12 36.44 38.26 40.17 42.18
Total 869.46 1,103.52 1,831.11 2,577.71 2,706.59
NHPC
Rangit 14.47 15.20 15.96 16.75 17.59
Teesta 81.70 85.78 90.07 94.57 99.30
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 20
Particulars Power Purchase Cost
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Total 96.17 100.98 106.03 111.33 116.90
PTC
Chukha 43.89 48.09 48.09 48.09 48.09
Punatsangchhu-II HEP - 161.45 185.26 195.05 204.25
Tala 89.96 89.96 89.96 89.96 89.96
Total 133.85 299.50 323.31 333.11 342.30
Total Central Sector 1,099.48 1,504.01 2,260.45 3,022.14 3,165.79
Others (outside
Boundaries)
DVC 2,613.43 2,851.71 2,994.30 2,432.16 2,491.48
STOA - 218.71 - - -
Total Others 2,613.43 3,070.42 2,994.30 2,432.16 2,491.48
State Sector
PTPS 217.53 228.40 239.82 251.81 264.40
PTPS-NTPC Phase-1 - 215.10 801.90 801.90 1,172.70
SHPS 23.18 24.34 25.56 26.83 28.18
TVNL 836.59 878.42 922.34 968.46 1,016.88
Total State Sector 1,077.30 1,346.26 1,989.62 2,049.00 2,482.16
Private
Inland Power 184.40 193.62 203.31 213.47 224.14
APNRL 12% 110.13 115.63 121.41 127.48 133.86
APNRL 13% 250.50 263.03 276.18 289.99 304.49
APNRL STOA 42.50 - - - -
Total Private Sector 587.53 572.29 600.90 630.95 662.49
Other RE
Solar IPPs 30.30 30.30 30.30 30.30 30.30
Solar REC 7.23 7.23 7.23 7.25 7.23
JREDA 103.75 200.32 357.41 528.57 621.71
RE Others 386.28 597.98 928.96 1,262.99 1,329.95
Total RE 527.55 835.83 1,323.90 1,829.11 1,989.18
PGCIL 124.53 136.98 150.68 165.75 182.32
Posoco (ERLDC) 1.54 1.69 1.86 2.05 2.25
Grand Total 5,905.30 7,328.80 9,169.16 9,963.37 10,791.10
2.21 The Petitioner requests the Hon’ble commission to approve the Power Purchase
Cost as detailed above which is in line with the JSERC (Terms and Conditions for
Determination of Distribution Tariff) Regulations 2015.
2.22 Jharkhand has put special focus on power purchase through renewable sources with
a vision to move on the path of sustainable development as well as to fulfil the
Renewable Purchase Obligations (RPO). The RPO targets are segregated into two
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 21
major parts i.e. RPO through solar sources and RPO through Non-solar sources.
2.23 To meet the Solar RPO targets, JBVNL has planned to procure the solar power from
present allocations as well as power available through different IPPs recently
selected under the recently floated tender for development of 1200 MW solar
capacity. Projects under this tender are expected to be allocated under two
categories: 200 MW for projects smaller than 25 MW (minimum size is 1 MW) and
1,000 MW for projects ranging between 26 MW and 500 MW. Around 23 small and
big players of solar industry are selected to install solar power plants in Jharkhand
totalling up to 1200 MW capacity. JBVNL has already planned to procure power from
these sources based the expected CODs of the solar plants in a phased manner.
This will not only fulfil the below described targets, but will allow utility to meet its
demand and serve its consumers with 24X7 reliable power.
2.24 Also, Petitioner has to meet the Non-solar targets as provided in the table below. To
meet these targets JBVNL has planned to enter into the PPAs with different
generators having different sources of power generation like wind, small hydro and
biomass. The process of allocation from these sources are underway and will be
done at earliest. Once after the finalization of allocation through non solar renewable
sources, a notification in this regard along with detailed allocation list will be provided
to Hon’ble commission.
2.25 In the absence of above mentioned power availability, Petitioner has also planned
to purchase REC’s to meet the shortfall in achieving the RPO targets. The RPO
targets to be followed by JBVNL and expected quantum to be purchase to fulfil it
based on the total energy availability are provided in the table below.
Table 9: Renewable Purchase Obligations (RPO)
RPO FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Non-solar (%) 5.00% 6.50% 8.50% 11.00% 11%
Solar (%) 1.50% 2.25% 3.25% 4.50% 5.00%
Non-solar (MUs) 643.80 996.63 1,548.26 2,104.99 2,216.58
Solar (MUs) 193.14 344.99 591.98 861.13 1,007.53
Total (MUs) 836.94 1,341.61 2,140.24 2,966.12 3,224.11
AT&C & Distribution Losses and Energy Requirement
2.26 The Regulation 5.23 of JSERC MYT Regulations provides for the targets for
Distribution Losses and Collection Efficiency, as stated below:
“The Licensee shall file the distribution loss trajectory for the entire Control Period in
the Business Plan commensurate with the capital investment plan for each year of
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 22
the control period for approval of the Commission after verification and evaluation of
the same.”
2.27 Historically, AT&C losses of JBVNL have been high to the extent of 54.16% in FY
08-09 (erstwhile JSEB), however significant improvement has been witnessed
during the last 7 years as the losses have been brought down to 39% in FY 14-15
and 38.00 % during FY 15-16 as seen in the figure below. It is still alarmingly high
considering the national average of 23% during FY 14-15. The AT&C losses vis-à-
vis collection efficiency over the period of FY 11-12 to FY 15-16 are provided in the
figure below.
Figure 2: AT&C Losses and Collection Efficiency (%age)
2.28 The Petitioner clearly recognizes the importance of bringing down the AT&C losses
in order to make the State power sector viable. It is understood that by any
standards, the existing AT&C losses are unsustainable and imply a steady decline
of power sector operations. Continuation of the present level of losses would not
only pose a threat to the power sector operations but also jeopardize the growth
prospects of the economy as a whole.
2.29 The Petitioner has already undertaken several steps and numerous measures are
envisaged to be undertaken in near future to bring down the existing AT&C losses.
The details of such initiatives is already provided in the MYT Business Plan
submitted by the Petitioner, as summarized below:
Figure 3: Action Plan for AT&C and T&D Loss Reduction
42.847.5
42.239 36
87.480.8
87 87 88
0
10
20
30
40
50
60
70
80
90
100
FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16
AT&C Losses Collection efficiency
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 23
2.30 The Petitioner is committed towards achieving an operational turnaround.
Considering the focus and all round efforts to reduce the AT&C losses, the Petitioner
has proposed a stringent AT&C loss reduction trajectory to serve as a target for the
organization. The Petitioner aims to reach the level of AT&C losses to the tune of
15% by FY 18-19 itself, as detailed in the trajectory below:
Table 10: Targets AT&C Losses, Collection Efficiency and Billing Efficiency
Parameters FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Distribution Losses 24.20% 20.40% 15.00% 15.00% 15.00%
Collection Efficiency 95.00% 98.00% 100.00% 100.00% 100.00%
AT&C Losses 27.99% 21.99% 15.00% 15.00% 15.00%
2.31 It is pertinent to mention that the AT&C loss trajectory is an optimistic target set by
the Petitioner and is in line with UDAY targets. However, the Petitioner is in the
process of seeking relaxation in the above trajectory from the Govt. of India,
considering the practical difficulties. Therefore in an event of a revised trajectory
approved by the Govt. of India, the Petitioner shall be submit the revised AT&C loss
trajectory to the Hon’ble commission. It is humbly requested that the Hon’ble
Commission may kindly consider the efforts being undertaken by JBVNL and any
revision in the AT&C losses in future years may kindly be allowed subsequently.
Energy Balance
2.32 The Petitioner would like to submit that power purchase from various sources are
segregated into different heads, while calculating the energy balance for the control
period. Power Purchase from Outside JBVNL boundary comprises of all power
purchased through central allocations, APNRL, STOA and a portion of TVNL while
Billing Efficiency
•Metering
•Android based Spot Billing
•Mobile Application
•Consumer Indexing & GIS Mapping
•Automatic Meter Reading
Collection Efficiency
•Pragya Kendra
•Post offices
•Tying up with Banks
•ATP machines
•Online Payment through Portal
•Prepaid Metering
•Mobile Application
Other Measures for AT&C and Distribution Los reduction
•Physical feeder segregation
•LED
•PAT scheme implementation
•Consumer awareness programs
•Name and shame campaign
•Energy audit
•Consumer Complaint Cell
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 24
a major portion of around 67% on an average falls into the energy Input directly to
state transmission system. Subsequent transmission loss are applied on energy
Input directly to state transmission system, State-owned generation and major part
of renewables (above 50 MW), which are connected to 132 kV or above. While no
transmission charges are applied on direct input of energy to distribution system
which comprise power available from DVC and a small portion of renewables (less
than 50 MW).
2.33 The energy requirement for Company will be met by supply from various sources as
discussed above in the power purchase section. Based on the information provided
above, Energy Balance of JBVNL for the period FY 16-17 and FY 20-21 is shown in
the following table.
Table 11: Energy balance
Particulars FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Power Purchase from Outside
JSEB Boundary 5,123.99 6,553.76 7,433.20 8,860.80 8,859.34
Loss in External System (%) 3% 3% 3% 3% 3%
Loss in External System 153.72 196.61 223.00 265.82 265.78
Net Outside Power Available 4,970.27 6,357.15 7,210.21 8,594.98 8,593.56
Energy Input Directly to State
Transmission System 1,428.05 1,428.05 1,428.05 1,428.05 1,428.05
State Generation 938.51 1,416.51 2,720.51 2,720.51 3,544.51
Energy Input through
Renewables sources 627.70 1,006.21 1,605.18 2,224.59 2,418.08
UI Sale / Receivable - - - - -
Energy Available for Onward
Transmission 7,964.53 10,207.92 12,963.94 14,968.13 15,984.20
Transmission Loss (%) 5.00% 5.00% 4.50% 4.50% 4.00%
Transmission Loss 398.23 510.40 583.38 673.57 639.37
Net Energy Sent to
Distribution System 7,566.30 9,697.52 12,380.57 14,294.56 15,344.83
Direct Input of Energy to
Distribution System 5,309.23 5,635.40 5,835.06 4,841.53 4,806.03
Total Energy Available for
Sales
12,875.54
15,332.93
18,215.63
19,136.09
20,151.79
Projected Sales
9,759.95
12,204.85
15,482.61
16,265.85
17,133.19
Distribution loss Trajectory 24.20% 20.40% 15.00% 15.00% 15.00%
Total energy requirement
considering Distribution
Losses
12,875.93 15,332.73 18,214.84 19,136.29 20,150.69
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 25
2.34 It is humbly submitted that the Hon’ble Commission may kindly consider the above
energy balance and approve for the purpose of ARR and tariff determination.
Operations and Maintenance Cost
2.35 As per JSERC (Terms and Conditions for Determination of Distribution Tariff)
Regulations 2015, the operation and Maintenance (O&M) expenses includes:
a) Salaries, wages, pension contribution and other employee costs;
b) Administrative and General expenses;
c) Repairs and Maintenance;
2.36 In line with the above Regulations, the Petitioner has computed the O&M expenses,
with its constituents as detailed in the following paragraphs.
Employees cost
2.37 The employee cost for the MYT control period is estimated based on the employee
cost provided in the provisional accounts for FY 14-15 and estimated employee cost
for FY 15-16, as detailed in the table below.
Table 12: Employee Cost & Terminal Benefit
Particulars (Rs.
Cr.)
FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Employee Cost 151.9 173.9 212.2 228.3 245.7 264.4 284.4
Terminal benefits 102.0 111.0 135.4 145.6 156.7 168.6 181.4
Total Cost 253.9 284.9 347.6 374.0 402.4 433.0 465.9
2.38 The projections of employee cost for the MYT period from FY 16-17 to FY 20-21
considers an annual escalation of 7.6%, however, owing to the expected impact of
7th Pay Commission the escalation rate for FY 16-17 period has been considered
as 22%. The escalation factor has been estimated in line with the Regulation 6.6 (c)
whereby the Wholesale Price Index (WPI) and Consumer Price Index (CPI) for a
period of 5 years has been estimated and a weighted average rate has been arrived
at by giving 45% weightage to WPI and 55% weightage to CPI. It would be important
to mention here that the CPI and WPI for a period of 5 years has been considered
as it would reflect long term trend and considers the impact of economic cycle.
2.39 In addition to employee cost, the terminal benefits liability of JBVNL employees has
been estimated keeping in view the actual terminal benefit liability during FY 14-15,
based on the provisional annual accounts. The terminal benefit liability also
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 26
considers an escalation of 22% over the base year for FY 16-17 while for remaining
period the escalation of 7.6% YoY has been considered.
Administrative and General (A&G) Expenses
2.40 In line with the Regulation 6.6 (b) and (c ) the A&G expenses have been projected,
with provisional figures of FY 14-15 being the base for arriving A&G expenses for
FY 15-16 and for the MYT control period. The estimation of A&G expense for FY 16-
17 assumes an additional 5% increase owing to the various steps being undertaken
by the utility in terms of outsourcing the tasks and utilizing consultancy services for
capacity building of the entity. The details of A&G expenses are provided in the table
below.
Table 13: A&G Expenses
Particulars (Rs. Cr.)
FY 14-
15
FY 15-
16
FY 16-
17
FY 17-
18
FY 18-
19
FY 19-
20
FY 20-
21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Administration and
General Expenses 42.50 46.75 52.64 56.64 60.94 65.57 70.56
Repair and Maintenace Cost
2.41 In line with the Regulation 6.6 (a) of JSERC MYT Regulation 2015, the R&M cost
has been projected whereby the projected GFA has been considered.
Table 14: R&M Expenses
Particulars (Rs. Cr.)
FY 14-
15
FY 15-
16
FY 16-
17
FY 17-
18
FY 18-
19
FY 19-
20
FY 20-
21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Gross Fixed Assets 2,369.5 4,065.4 6,930.1 10,880.2 14,184.5 16,222.4 17,918.5
Repair and
Maintenance cost 30.7 124.2 111.2 115.3 162.2 196.8 221.0
2.42 It can be observed that during FY 15-16 a significant increase in R&M cost is
expected as during FY 14-15 the agency of rural franchisees had not raised the bills
and the pending bills of RF were admitted in FY 15-16 and no provision was made
during FY 14-15. The bills amounting to Rs. 54 Cr. were estimated to be paid to rural
franchisee during FY 15-16.
2.43 The Petitioner thus humbly prays to the Hon’ble Commission to approve the
Operation & Maintenance Expenses as outlined above and which are in line with the
Regulations 6.3 – 6.7 of JSERC (Terms and Conditions for Determination of
Distribution Tariff) Regulations, 2015.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 27
GFA and Depreciation
2.44 The Petitioner humbly prays to the Hon’ble Commission to approve the Depreciation
Expenses as outlined below which are in line with the Regulations 6.32 to 6.36 of
JSERC (Terms and Conditions for Determination of Distribution Tariff) Regulations,
2015.
2.45 The projections of depreciation considers the Gross Fixed Assets as per the opening
balance provided in the provisional financial statement for FY 14-15 based on which
the GFA for FY 15-16 has been estimated. Based on the closing GFA of FY15-16,
the additions in GFA for the MYT control period have been added to arrive at the
closing GFA figures for the MYT control period. The details of capitalization / amount
of capital expenditure transferred to GFA in each of the financial year has been
detailed out in Chapter 4 of this business plan.
2.46 The depreciation for the existing assets has been considered as to be the same rate
as provided in the provisional financial statements of FY 14-15. While for asset
additions during FY 15-16 and for MYT period, the depreciation rate has been
considered as per the depreciation rates provided in the Appendix 1 of the JSERC
MYT Regulations, 2015. It is expected that majority of the capital expenditure shall
be towards transformers, switchgears, lightening arresters, cables, etc., thus an
average rate applicable to these components has been arrived , based on which the
depreciation rate applicable has been estimated.
2.47 It is important to mention, as provided in Regulation 6.32 of the JSERC Tariff
Regulations 2015, the depreciation attributable to grants has been reduced from the
total depreciation to arrive at the depreciation forming part of the ARR. The details
of total depreciation, depreciation attributable to grants and depreciation forming part
of ARR are provided in the table below:
Table 15: Gross Fixed Assets and Depreciation
Particulars (Rs.
Cr.)
FY 14-
15
FY 15-
16
FY 16-
17 FY 17-18
FY 18-
19
FY 19-
20
FY 20-
21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Opening GFA 2,293.9 2,369.5 4,065.4 6,930.1 10,880.2 14,184.5 16,222.4
Additions 75.6 1,696.0 2,864.7 3,950.1 3,304.3 2,037.9 1,696.1
Closing GFA 2,369.5 4,065.4 6,930.1 10,880.2 14,184.5 16,222.4 17,918.5
Depreciation -
Existing Assets 54.2 54.2 54.2 54.2 54.2 54.2 54.2
Depreciation - New
Assets 22.4 120.4 300.3 491.8 632.9 731.4
Depreciation – 54.2 76.6 174.6 354.5 546.0 687.1 785.6
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 28
Particulars (Rs.
Cr.)
FY 14-
15
FY 15-
16
FY 16-
17 FY 17-18
FY 18-
19
FY 19-
20
FY 20-
21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Total
Less: Depreciation
attributable to
Grants etc.
- 9.6 49.9 128.5 221.2 282.7 299.4
Depreciation
forming part of
ARR
54.2 67.0 124.7 226.0 324.9 404.4 486.2
2.48 The Petitioner humbly prays to the Hon’ble Commission to approve the GFA and
Depreciation which are in line with the JSERC Tariff Regulations 2015.
Interest on Working Capital
2.49 The Regulation 6.29 and 6.30 of JSERC Tariff Regulation 2015 provide for
estimation of working capital requirement and interest thereof. In line with the above
Regulation, the working capital requirement of JBVNL has been estimated for the
MYT control period, with the following components:
a. One-twelfth of the amount of Operation and Maintenance expenses for wheeling
business for such financial year; plus
b. Maintenance spares at 1% of Opening GFA of wheeling business; plus
c. Two months equivalent of the expected revenue from wheeling charges at the
prevailing tariffs; minus
d. Amount held as security deposits under clause (a) and clause (b) of subsection
(1) of Section 47 of the Act from consumers and Distribution System Users net
of any security held for wheeling business; minus
e. One month equivalent of cost of power purchased, based on the annual power
procurement plan.
2.50 Based on the above, the working capital requirement has been estimated and the
interest rate of 13.5% has been applied to arrive at the interest on working capital.
The Regulation 6.31 provides for rate of interest on working capital to be equal to
SBI base rate, which is prevailing at 10% plus 350 basis points, thus totalling to
13.5%. The details of working capital and interest is provided in the table below:
Table 16: Interest on Working Capital
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Receivables 1,471.2 1,738.3 2,077.3 2,200.3 2,377.0
Maintenance spares 40.7 69.3 108.8 141.8 162.2
O&M Cost 42.6 45.5 52.1 57.9 63.1
Less: Power purchase cost 492.1 610.7 764.1 806.1 873.9
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 29
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Less: Security deposits held 335.7 335.7 335.7 335.7 335.7
Total Working capital requirements 726.7 906.7 1,138.4 1,258.3 1,392.7
Interest on working capital 98.1 122.4 153.7 169.9 188.0
Equity Schedule and Return on Equity
2.51 The Petitioner humbly prays to the Hon’ble Commission to approve the Return on
Equity Expenses as outlined below and which are in line with the Regulations 6.17
to 6.19 of JSERC (Terms and Conditions for Determination of Distribution Tariff)
Regulations, 2015.
According to Regulation 6.17 of JSERC Tariff Regulation 2015,
“The rate of return of equity shall be 15.5% (post tax) for the period of these
Regulations;
Provided that in case of projects, commissioned on or after 01st April, 2016 the rate
of return shall be increased by 0.50%, if such projects are completed within the time
line specified in the capital investment plan approved by the commission.”
2.52 The capital investments of JBVNL shall be funded through a mix of grant, debt and
equity, the envisaged equity contribution of State Government under various
approved schemes and equity portion to the extent of 30% of remaining capital
investment schemes has been considered. The rate of return on equity has been
considered in line with the Regulation 6.17 of the JSERC MYT Regulation 2015,
considering the projects to be completed on time. The details of projected equity
capital to be employed and the estimated return on equity are provided in the table
below:
Table 17: Equity Schedule & RoE
Particulars (Rs.
Cr.)
FY 14-15 FY 15-
16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Prov.) (Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Opening Equity - 3,028.4 3,029.7 3,239.0 3,767.4 4,294.0 4,756.0
Equity Additions - 1.3 209.3 528.4 526.6 462.1 556.5
Closing Equity 3,028.4 3,029.7 3,239.0 3,767.4 4,294.0 4,756.0 5,312.6
Return on Equity 484.5 484.6 501.5 560.5 644.9 724.0 805.5
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 30
Provision for Bad Debt
2.53 The Regulation 5.24 of JSERC (Terms and Conditions for Determination of
Distribution Tariff) Regulations 2015 which provides for the collection efficiency
target of JBVNL to be 100% for the entire control period. It is humbly submitted to
Hon’ble Commission that JBVNL’s present collection efficiency level is about 89.1%,
which JBVNL is committed to improve over significantly over the MYT control period.
There have been numerous initiatives undertaken by JBVNL to improve its collection
efficiency, including introduction of Urja Mitra, spot billing, mobile base bill
application, increasing number of bill collection points, taking actions against
defaulters to recover arrear, which are discussed in detail in chapters of this
business plan. However, it would be highly unlikely and impractical to say that any
amount of measures to improve the collection efficiency will overnight result in 100%
achievement.
2.54 It is imperative to mention that it is not only the JBVNL’s prerogative to undertake
initiatives to improve collections but it significantly depends upon the socio-political
environment of the State, which affects the consumers capacity and intention to pay
for the usage of electricity. For the people of the State who have been used to
consuming electricity without paying over the years, bringing a sudden change and
creating awareness regarding importance of electricity bill payment may take some
time. Therefore, JBVNL humbly requests the Hon’ble commission to kindly provide
a modified trajectory as proposed by JBVNL below, which JBVNL is aspiring to
achieve over the next five years and emerge as a self-sustained utility of Jharkhand.
Table 18: Bad Debts due to collection efficiency
Particulars (Rs. Cr.)
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Receivables 7,717.9 8,827.4 10,430.1 12,463.6 13,201.7 14,262.0
Collection efficiency 89.0% 95.0% 98.0% 100.0% 100.0% 100.0%
Bad debts provision 849.0 441.4 208.6 - - -
2.55 It is submitted that till such time JBVNL is not able to achieve 100% collection
efficiency, the disallowance of such amount in the ARR may kindly be avoided and
the difference in such collection efficiency may kindly be passed on as part of ARR
in form of provision for bad debts. Also, as can be seen in table above, JBVNL is
committed to reduce the gap of actual and approved collection efficiency to zero by
FY 20-21, which shall be in the benefit of consumers and State at large.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 31
Non Tariff Income
2.56 The Petitioner humbly prays to the Hon’ble Commission to approve the Non-tariff
income as outlined below and which are in line with the Regulations 6.50 to 6.51 of
JSERC (Terms and Conditions for Determination of Distribution Tariff) Regulations,
2015.
According to the JSERC Tariff Regulation 2015 -
“All incomes being incidental to electricity business and derived by the Licensee from
sources, including but not limited to profit derived from disposal of assets, rents,
delayed payment surcharge, meter rent (if any), income from investments other than
contingency reserves, miscellaneous receipts from the consumers and income to
Licensed business from the Other Business of the Licensee shall constitute non-
tariff income of the Licensee; “
2.57 In order to project the non-tariff income, the historical figures of other income,
excluding DPS has been utilized. The DPS has not been considered as part of other
income as JBVNL is able to recover only a minimal amount against the actual DPS
booked.
Table 19: Non-Tariff Income
Particulars (Rs.
Cr.)
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Other income (12.5) (13.1) (13.8) (14.5) (15.2) (16.0)
Revenue at Current Tariff
2.58 The billed revenue on the estimated sales and prevailing tariff for the Control Period
is estimated in the table below:
Table 20: Projected Revenue on Current Tariff for each year of MYT Control Period (Rs. Crores)
JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Domestic 897.29 1,217.73 1,663.88 1,760.97 1,870.30 Commercial/Non Domestic 393.66 425.15 446.41 468.73 492.16
Public Lighting / SS 22.87 23.37 23.88 24.40 24.93
Irrigation / IAS 20.75 35.55 50.42 54.85 59.28
MES 45.70 45.66 45.62 45.58 45.54 Industrial LT/ LTIS 142.77 145.58 148.44 151.36 154.34
Industrial HT/ HTS / S 1,439.08 1,457.52 1,476.21 1,495.13 1,514.29
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 32
JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
Railway / RTS 152.91 152.91 152.91 152.91 152.91
Total 3,115.03 3,503.47 4,007.76 4,153.93 4,313.76
Estimated Aggregate Revenue Requirement for MYT Control Period
2.59 Based on the components of the ARR discussed in the above sub-sections, the
projected ARR for the MYT control period has been provided in the table below:
Table 21: Projected Aggregate Revenue for MYT Control Period
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
O&M Cost 511.4 545.9 625.6 695.3 757.4
Employee cost 347.6 374.0 402.4 433.0 465.9
A&G Expense 52.6 56.6 60.9 65.6 70.6
R&M Cost 111.2 115.3 162.2 196.8 221.0
Power purchase (Inc. PGCIL & RLDC) 5,905.3 7,328.8 9,169.2 9,673.4 10,487.2
Transmission cost – JUSNL 267.9 336.0 418.4 463.6 510.6
Interest Cost 990.3 1,115.6 1,141.6 1,086.3 1,043.0
Interest on working capital 98.1 122.4 153.7 169.9 188.0
Depreciation 124.7 226.0 324.9 404.4 486.2
Return on Equity 501.5 560.5 644.9 724.0 805.5
Provision for bad debts 441.4 208.6 - - -
Less: Other income (13.1) (13.8) (14.5) (15.2) (16.0)
Total ARR required 8,827.4 10,430.1 12,463.6 13,201.7 14,262.0
2.60 The Petitioner humbly prays to the Hon’ble Commission to kindly approve the above
Aggregate Revenue Requirement for the MYT Control period. It is pertinent to
mention here that the impact of increase in operational and financial efficiency is
evident from the fact that the energy sales in the MYT period are increasing around
twice from 8,450.72 MUs in FY15-16 to 17,133.19 MUs in FY20-21, however, the
ARR after consideration of escalation increases from 8,827.4 Cr.in FY 16-17 to Rs.
13,941.1 Cr. in FY 20-21.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 33
3. Segregation into Wheeling and Retail Supply business
3.1 The Regulation 5.7 of the JSERC Tariff Regulations 2015, requires the distribution
licensee to segregate its ARR into wheeling and retail supply business, as
reproduced hereunder:
“5.7 The Business Plan shall be filed separately for the Retail Supply and Wheeling
Business. As specified in clause 5.5 of these regulations, in absence of segregated
accounts for the two businesses, the Licensee shall prepare an allocation statement
and submit the same with the business plan;”
3.2 In line with the above, the Petitioner has segregated the ARR into retail supply and
wheeling business. It is pertinent to mention that at present the Petitioner is not
maintaining separate accounting for wheeling and retail supply business. However,
considering the nature of expenditure and its attribution to the different businesses
the ARR has been segregated.
3.3 The summary of segregation of various components of ARR into wheeling and retail
supply business is provided in the table below.
Table 22: ARR Components into Wheeling and retail business
Particulars (Rs. Cr.) Share of Retail Supply Share of Wheeling Business
%age %age
O&M Cost
Employee cost 50% 50%
A&G Expense 25% 75%
R&M Cost 5% 95%
Power purchase (Inc. PGCIL &
RLDC) 100% 0%
Interest Cost 100% 0%
Interest on working capital 10% 90%
Depreciation 2% 98%
Return on Equity 10% 90%
Provision for bad debts 10% 90%
Less: Other income 10% 90%
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 34
Considering the general principles of segregation of above heads into wheeling and
retail supply business, JBVNL has considered different ratio to Wheeling Business
and retail supply business based on the nature of heads. The detailing of head wise
segregation is provided in the Business Plan for MYT period for FY 16-17 to FY 20-
21
3.4 Based on above, the segregated ARR of Retail supply business and wheeling
business has been provided below:
Table 23: ARR of Retail Supply Business (Rs. Cr.)
Table 24: ARR of Wheeling Business (Rs. Cr.)
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
O&M Cost 318.9 339.0 401.0 452.6 495.8
Employee cost 173.8 187.0 201.2 216.5 232.9
A&G Expense 39.5 42.5 45.7 49.2 52.9
R&M Cost 105.6 109.5 154.1 187.0 209.9
Power purchase (Inc. PGCIL & RLDC) - - - - -
Transmission charges – JUSNL - - - - -
Interest Cost 891.3 1,004.1 1,027.4 977.7 938.7
Interest on working capital 96.1 120.0 150.6 166.5 184.3
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
O&M Cost 192.5 206.9 224.5 242.7 261.6
Employee cost 173.8 187.0 201.2 216.5 232.9
A&G Expense 13.2 14.2 15.2 16.4 17.6
R&M Cost 5.6 5.8 8.1 9.8 11.0
Power purchase (Inc. PGCIL & RLDC) 5,905.3 7,328.8 9,169.2 9,673.4 10,487.2
Transmission charges – JUSNL 267.9 336.0 418.4 463.6 510.6
Interest Cost 99.0 111.6 114.2 108.6 104.3
Interest on working capital 2.0 2.4 3.1 3.4 3.8
Depreciation 12.5 22.6 32.5 40.4 48.6
Return on Equity 50.1 56.1 64.5 72.4 80.5
Provision for bad debts 44.1 20.9 - - -
Less: Other income (13.1) (13.8) (14.5) (15.2) (16.0)
Total ARR required 6,560.3 8,071.4 10,011.8 10,589.4 11,480.7
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 35
Particulars (Rs. Cr.) FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
Depreciation 112.2 203.4 292.4 364.0 437.6
Return on Equity 451.3 504.5 580.4 651.6 724.9
Provision for bad debts 397.2 187.7 - - -
Less: Other income - - - - -
Total ARR required 2,267.1 2,358.6 2,451.8 2,612.4 2,781.3
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 36
4. Revenue Gap and Treatment of Revenue Gap
Revenue Surplus/Gap for the Control Period
4.1 Based on the projected ARR and revenue based on the existing tariff for each year
of the MYT Control Period, the revenue gap is summarized in table below:
Table 25: Revenue Gap on Current Tariff for MYT Period (Rs. Crores)
S.
No. JBVNL FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21
1. Net Revenue
Requirement 8,827.4 10,364.8 12,246.8 12,899.1 13,941.1
2.
Revenue from
Retail sales at
Existing Tariff
3,115.0 3,503.4 4,007.7 4,153.9 4,313.7
3.
Revenue
(Surplus)/ Gap
for the year 5,712.4 6,861.3 8,239.0 8,745.2 9,627.3
4.2 The above revenue gap has been estimated at the current tariffs prevailing in the
Petitioner’s supply area.
4.3 As submitted in previous chapter, the computed revenue at existing tariff for the FY
16-17 is inadequate to meet the projected annual revenue requirement of the JBVNL
for the said period. The total revenue gap projected for FY 16-17 is provided in the
table below.
Table 26: Revenue Surplus/Gap for the year FY 16-17
S. No. JBVNL FY 16-17
(In Rs Crs)
1. Net Revenue Requirement 8,827.4
2. Revenue from Retail sales at Existing Tariff 3,115.0
3. Revenue (Surplus)/ Gap for the year 5,712.4
4.4 The Petitioner would like to bring in notice to Hon’ble Commission that the Petitioner
has not considered the previous accumulated revenue gap of JBVNL for FY 13-14 to
FY 15-16. And the same will be filed separately in the true-up petition with audited
annual accounts for the said period.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 37
Revenue at Proposed Tariff for FY16-17
4.5 In order to cover the projected revenue gap for the Control Period, JBVNL has
proposed revision in retail tariff for various categories which is discussed in the next
chapter of this petition.
4.6 With proposed tariff revisions for FY 16-17 outlined in Section 5 of this Petition, the
revenue at proposed tariffs for FY 16-17 from various categories of consumers is
summarized in the table below:
Table 27: Revenue at Proposed Tariff
Categories Sales (MUs) Energy Charge (Rs Crs)
Fixed Charge (Rs. Crores)
Total Revenue (Rs. Crores)
Domestic 6,025.51 1,568.54 850.82 2,419.36
Commercial / Non Domestic
497.08 296.66 234.40 531.06
Public Lighting / SS 146.70 4.40 76.41 80.81
Irrigation / IAS 303.00 36.36 18.50 54.86
MES 15.73 7.86 2.39 10.25
Industrial LT / LTIS 181.93 104.90 73.60 178.50
Industrial HT/ HTS/ S 2,368.01 1,342.73 470.30 1,813.03
Railway / RTS 222.00 139.86 0.32 140.18
Total 9,759.95 3,501.31 1,726.74 5,228.05
Resource Gap Funding
4.7 The Petitioner would like to submit that in order to meet the operational funding
requirement of JBVNL arising out of legacy of disallowances and present tariffs being
non-reflective of the actual cost of supply, the State Government provides support in
form of Revenue Gap Funding.
4.8 The resource gap funding amounted to Rs 1,662.60 Cr has been proposed to be
received by the Petitioner during FY 16-17 from the Govt. of Jharkhand as envisaged
under UDAY Memorandum of Understanding. The Petitioner would also like to submit
that resource gap funding being provided by Government of Jharkhand is towards
disallowances and slashes made by the Hon’ble Commission during tariff
determination process for various parameters such as higher T&D Loss, normative
interest computation, normative generation cost etc. and should not be considered
as measure to reduce the Aggregate Revenue Requirement of Petitioner.
4.9 A communication from the Energy department, Government of Jharkhand was also
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 38
submitted (annexed for reference) vide letter dated 14 July 2014 stating that
“Amount released towards resource gap may be utilized to meet the
slashes/disallowances worked out by the Hon’ble commission while fixing the tariff”.
4.10 In line with the above communication by the GOJ, the Petitioner prays that the
Hon’ble Commission should consider adjusting the complete RGF towards
disallowance/slashes and the remaining amount of RGF may be considered towards
reduction of tariff for particular category of consumers in the State.
4.11 It is pertinent to mention here that similar practice has been adopted by the Bihar
State Electricity Commission during the last 4 years. The resultant impact can be
seen in terms of rationalized tariffs and better financial position of the State Utility. A
similar treatment of RGF will result into a financially sustainable JBVNL over the long
run, which is in the larger interest of the consumers of the State.
Revenue Surplus/Gap at Proposed Tariff for FY 2016-17
4.12 Based on the projected ARR, revenue for FY 2016-17 and Resource gap funding
envisaged from Govt. of Jharkhand, the net revenue gap for FY 2016-17 is
summarized in table below
Table 28: Revenue Gap at Proposed Tariff
S. No. JBVNL FY 16-17
(In Rs Crs)
1 Net Revenue Requirement 8,827.40
2 Revenue from Retail sales at Proposed Tariff 5,228.05
3 Revenue (Surplus)/ Gap for the year 3,599.35
4 Resource gap funding 1662.6
5 Net Revenue Gap for FY 2016-17 1,936.75
4.13 In view of the above submission, it can be seen that the revenue form proposed tariff
will only provide a partial relief to the Petitioner in recovering its revenue gap for FY
16-17. The Petitioner would like submit that given the significant amount of revenue
gap, the whole impact may be not be feasible to be passed on by way of revision in
retail tariffs, as it may lead to an inevitable tariff shock. Hence, net revenue gap
amounted to Rs 1,936.75 Crs is proposed to be left uncovered in FY 2016-17.
4.14 The Petitioner proposes and prays to the Hon’ble Commission for creation of
regulatory assets of such uncovered revenue gap, as discussed in the following
paragraphs.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 39
Creation of Regulatory Assets
4.15 It can be seen from the section above that in FY 2016-17 there is a huge revenue gap
of Rs 1,943.73 Crs which is not considered in the tariff revision. The Petitioner proposes
to meet the balance/ Uncovered revenue gap through creation of Regulatory Asset.
4.16 JBVNL proposes creation of regulatory asset for the unrecovered revenue gap Rs
1,943.73 Crs to avoid tariff shock to the consumers. The Hon’ble Commission is most
humbly requested to approve the above Regulatory assets worth Rs 1,943.73 Crs and
also provide an appropriate recovery mechanism to recover the Regulatory Assets as
per the provisions of Tariff Regulations 2010 and guidelines of National Tariff Policy
2006.
4.17 A proposed period of 5 years may be considered by the Hon’ble Commission to amortize
the regulatory assets and passed on to the consumers over the same period in equal
instalments. During the period, the Petitioner also prays for providing return on such
regulatory asset to the tune of weighted average cost of capital i.e.
4.18 The creation of regulatory assets has been a common practice amongst other States of
the country. The same has been allowed by the DERC in order on True-up for FY 13-
14, ARR and Distribution Tariff for FY 15-16 for BSES Rajdhani Power Limited dated
September 2015. Few clauses from Tariff Order is reproduced below-
2.280- Recovery of accumulated revenue gap, Regulatory Asset as envisaged in
clause 8.2.2 of Tariff policy is as under: a. Carrying cost of Regulatory Assets should
be allowed to the utilities. b. Recovery of Regulatory Assets to be time bound and
within a period not exceeding three years at the most, preferably within the control
period. c. The use of the facility of Regulatory Assets should not be retrospective. d.
In case when Regulatory Asset is proposed to be adopted, it should be ensured that
the ROE should not become unreasonably low in any year so that the capability of
licensee to borrow is not adversely affected.
2.373- The 8% surcharge has been allowed by the Commission for liquidating of huge
regulatory asset, which is against the provision of Electricity Act, 2003, NTP, MYT
Regulation and various directives of APTEL.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 40
5. Tariff Proposal
Summary of Tariff Proposals
5.1 The table below presents the existing and proposed tariff for various categories.
Table 29: Summary of Tariff Proposal
Category
Existing Component of Tariff Proposed Component of Tariff
Energy Charges (Rs/kWh)
Fixed Demand Charge (Rs/conn/month)
Energy Charges (Rs/kWh)
Fixed Demand Charge (Rs/conn/month)
Domestic (DS)
DS-I (a), Kutir Jyoti (metered) (0-50)
1.20 15.00 1.50 40.00
DS-I (a), Kutir Jyoti (metered) (51-100) 1.20 15.00 2.00 50.00
DS-I (a), Kutir Jyoti (unmetered) 0.00 40.00 0.00 250.00
DS-I (b),Metered (0-100) 1.50 27.00 2.25 100.00
DS-I (b),Metered (101-200) 1.50 27.00 2.50 150.00
DS-I (b),Metered (above 201) 1.60 27.00 3.00 200.00
DS-I (b), Other Rural Domestic Connections (Unmetered)
0.00 110.00 0.00 595.00
DS-II, <= 4 KW
0-100 2.60 43.00 3.50 120.00
101-250 2.60 43.00 3.80 140.00
251-500 3.10 65.00 4.25 160.00
500 and above 3.10 65.00 4.75 200.00
DS-III, Above 4 kW
0-250 3.20 110.00 4.10 200.00
251 and above 3.20 110.00 5.25 300.00
DS HT (either at 33Kv or 11kv level) 2.80 80.00 4.00 250.00
Non Domestic
NDS-I, Metered (<=2kW) (0-100)
1.90 32.00 3.50 80.00
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 41
Category
Existing Component of Tariff Proposed Component of Tariff
Energy Charges (Rs/kWh)
Fixed Demand Charge (Rs/conn/month)
Energy Charges (Rs/kWh)
Fixed Demand Charge (Rs/conn/month)
NDS-I, Metered (<=2kW) (101 - 250)
1.90 32.00 4.00 80.00
NDS-I, Metered (<=2kW) (Above 250)
1.90 32.00 4.50 100.00
NDS-I, Unmetered (<=2kW)
0.00 190.00 0.00 700.00
NDS-II 5.65 190.00 6.15 400.00
NDS-III (Advertising & Hoardings)
0-250 6.50 165.00 6.00 400.00
251-500 6.50 165.00 6.50 450.00
500 and above 6.50 165.00 7.00 500.00
Low Tension Industrial & Medium Power Service (LTIS)
LTIS (Demand based Tariff)
5.30 255 5.75 350
LTIS (Installation based Tariff)
5.30 140 5.75 200
Irrigation & Agriculture
IAS - I Metered 0.65 0.00 1.50 0.00
IAS - I Unmetered 0.00 75.00 0.00 300.00
IAS - II Metered 1.10 0.00 2.00 0.00
IAS - II Unmetered 0.00 300.00 0.00 500.00
HTS
HTS - 11KV 5.85 255.00 6.35 350.00
HTS - 33KV 5.85 255.00 6.35 400.00
HTS - 132KV 5.85 255.00 6.35 450.00
HT Specials
HTSS - 11KV 3.50 410.00 4.50 500.00
HTSS - 33KV 3.50 410.00 4.50 500.00
HTSS - 132KV 3.50 410.00 4.50 500.00
Traction
RTS 5.85 235.00 6.30 235.00
Street Light Service
SS - I (Metered) 4.80 38.00 6.00 350.00
SS - II (Unmetered) 0.00 150.00 0.00 500.00
MES 4.35 230.00 5.00 350.00
5.2 Category wise tariff proposals along with explanations are provided in this chapter for
consideration of the Hon’ble Commission.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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Domestic Service (DS)
Applicability
Domestic Service–I, Domestic Service–II, Domestic Service–III and Domestic Service HT.
5.3 This schedule shall apply to private residential premises for domestic use for
household electric appliances such as Radios, Fans, Televisions, Desert Coolers, Air
Conditioner, etc. and including Motors pumps for lifting water up to 1 BHP for domestic
purposes and other household electrical appliances not covered under any other
schedule.
5.4 This rate is also applicable for supply to religious institutions such as Temples,
Gurudwaras, Mosques, Church and Burial/Crematorium grounds and other
recognised charitable institutions, where no rental or fees are charged whatsoever. If
any fee or rentals are charged, such institution will be charged under Non domestic
category.
5.5 Rural drinking water schemes which are managed by Panchayats and User’s Co-
operatives are also included under this Category and corresponding Tariff would be
charged depending upon the load of Pumping motors as applicable to the DS
category.
Category of Services
a) Domestic Service – DS-1(a): For Kutir Jyoti Connection only for connected load up
to 100 Watt for Rural Areas.
b) Domestic Service – DS-I (b): - For rural areas not covered by area indicated under
DS-II and for connected load not exceeding 2 KW.
c) Domestic Service – (DS-II): - For urban areas covered by notified Area Committee /
municipality / Municipal Corporation / All District Town / All sub-divisional Town / All
Block Headquarters / Industrial Area / contiguous sub-urban area all market places
urban or rural and for connected load above 2KW but not exceeding 4KW.
d) Domestic Service – (DS – III):-For Urban areas covered by notified Area Committee
/ municipality / municipal Corporation / All District Town / All sub-divisional Town /
All Block Headquarters / Industrial Area / contiguous sub-urban area all market
places urban or rural and for connected load exceeding 4KW and upto 85.044 KW
e) Domestic service – HT (DS – HT) (Optional): - This Schedule shall apply for
Domestic Connection in Housing Colonies / Housing Complex / Houses of multi
storied buildings purely for residential use for single point metered supply, with
power supply at 33KV or 11KV voltage level and load above 85.044 KW.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 43
Service Character
1. For DS-I (a): AC, 50 Cycles, Single phase at 230 volts for Kutir Jyoti connection for
load below 100 KW
2. For DS-I (b): AC, 50 Cycles, Single Phase at 230 Volts for load below 2 KW.
3. For DS-II: AC, 50 Cycles, Single Phase at 230 Volts for installed load up to 4 KW.
4. For DS-III: AC, 50 Cycles, three phase at 400 Volts for installed load exceeding 4
KW. 5. For DS-HT: AC, 50 Cycles, at 11 kV for installed load above 85.044 kW.
As per National Tariff Policy, Clause No 8.3 (1) Tariff Design: Linkage of Tariffs to Cost of Service “Consumers below poverty line who consume below a specified level, as prescribed in the National Electricity Policy may receive a special support through cross subsidy. Tariffs for such designated group of consumers will be at least 50% of the average cost of supply.” However, the proposed tariff for below poverty line consumers has been proposed much below the 50% of the Average Cost of Supply, petitioner thus humbly prays to the Hon’ble Commission to approve the proposed tariff structure.
Table 30: Existing and Proposed Tariff - DS
Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Domestic (DS)
DS-I (a), Kutir Jyoti (metered) (0-50)
Rs/Conn/Month
15.00 40.00 Rs/kWh 1.20 1.50
DS-I (a), Kutir Jyoti (metered) (51-100)
Rs/Conn/Month 15.00 50.00 Rs/kWh 1.20 2.00
DS-I (a), Kutir Jyoti (unmetered)
Rs/Conn/Month 40.00 250.00 Rs/kWh 0.00 0.00
DS-I (b),Metered (0-100)
Rs/Conn/Month 27.00 100.00 Rs/kWh 1.50 2.25
DS-I (b),Metered (101-250)
Rs/Conn/Month 27.00 150.00 Rs/kWh 1.50 2.50
DS-I (b),Metered (above 201)
Rs/Conn/Month 27.00 200.00 Rs/kWh 1.60 3.00
DS-I (b), Other Rural Domestic Connections (Unmetered)
Rs/Conn/Month 110.00 595.00 Rs/kWh 0.00 0.00
DS-II, <= 4 KW
0-100 Rs/Conn/Month 43.00 120.00 Rs/kWh 2.60 3.50
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 44
Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
101-250 Rs/Conn/Month
43.00 140.00 Rs/kWh 2.60 3.80
251-500 Rs/Conn/Month
65.00 160.00 Rs/kWh 3.10 4.25
500 and above Rs/Conn/Month 65.00 200.00 Rs/kWh 3.10 4.75
DS-III, Above 4 kW
0-250 Rs/Conn/Month
110.00 200.00 Rs/kWh 3.20 4.10
250 and above Rs/Conn/Month
110.00 300.00 Rs/kWh 3.20 5.25
DS HT (either at 33Kv or 11kv level)
Rs/kVA/Month 80.00 250.00 Rs/kWh 2.80 4.00
Delayed Payment Surcharge
For Domestic Service category, the delayed payment surcharge shall be at the rate of 1.5%
per month and part thereof.
Summary of changes proposed to Domestic Service (DS tariff) and Rationale for
Change in Tariff
5.6 JBVNL serves a large rural consumer base, amongst which a significant number of
consumers fall in the Below Poverty Line (BPL) category. This set of consumers is
extremely poor and cannot afford electricity at the rates which are being levied on the
domestic consumers in urban areas. However, in today’s time, electricity has become
an essential commodity for every common man and its role in improving the social and
economic upliftment of the underprivileged cannot be gainsaid. Denying electricity to
any citizen is tantamount to limiting the growth prospects of the entire family. JBVNL
completely understands this and hence in order to ensure the availability of electricity
even to people falling in the lowest economical strata, JBVNL has ensured connectivity
of many remote villages on its network.
5.7 As per the directions given by the Hon’ble Commission, JBVNL is also providing
electricity connections to all BPL consumers in two categories namely DS 1(a)
metered and DS 1(a) unmetered (for loads up to 100 W).
5.8 The monthly billing allowed by the Hon’ble Commission for these two categories as
per the tariff order for FY 2015-16 is as under:
Consumer Category Fixed Charge Energy Charge
DS 1(a) Metered Rs. 15 per month Rs. 1.20 per unit
DS 1(a) Unmetered Rs. 40 per month NIL
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 45
5.9 JBVNL would also like to draw the attention of the Hon’ble Commission to the high
T&D losses being observed in the rural feeders which primarily feed the domestic load
falling under DS 1(a) category or DS 1(b) category. It has been observed that the
unmetered consumers consume significantly high quantum of electricity every month
while continue to pay a meagre amount for such consumption. Also, it is a known fact
that a higher tariff would result into judicious utilization of energy by the consumers
and bring about discipline in electricity consumption.
5.10 In light of the above conditions, JBVNL prays that the Hon’ble Commission increases
the monthly fixed charges for the DS1 (a) Kutir Jyoti Unmetered consumers to Rs 250
per connection per month and for DS1 (b) consumers to Rs.600 per month. It is
pertinent to mention that a higher fixed tariff will act as a determinant for the consumers
to continue as un-metered consumption and encourage them to get their connections
metered.
5.11 The Petitioner would like to submit here that it is in the process of metering all its
consumers in urban and rural areas. A massive metering drive has been launched
under the various State and Central Govt. schemes to ensure elimination of
unmetered sales. Therefore, in the meantime it is important that a justified electricity
charge must be paid by these consumers.
5.12 The tariff hike including energy charges and fixed charges has been proposed in order
to move the retail tariffs for the category closer to the Cost of Supply and for reducing
the overall revenue gap for the JBVNL.
5.13 The Petitioner has also proposed changes in the consumption slab for DS 1 (b), DS II
and DS III consumer categories in order to keep the tariffs lower for low consumption
consumers and slightly higher for high consumption consumers. This is in line with the
principle that a consumer who is able to consume higher electricity must have the
higher economic resources to pay for such consumption.
5.14 It may be noted that the domestic category tariffs and each of the sub-categories in
the State of Jharkhand, as specified for the license area of JBVNL, are amongst the
lowest in the country and hence an upward revision is required for bridging the revenue
gap of the JBVNL. JBVNL submits below the tariff applicable to urban domestic
connections in various states.
Table 31: Comparison of existing domestic urban metered tariffs with approved tariffs in other States as per the
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 46
applicable recent tariff orders
State Applicable Fixed Charge (Domestic) Applicable Energy Charge
(Domestic)
Chhattisgarh
Fixed Charge:
0-40 units – Rs. 2.00/ kWh
41-200 units – Rs. 2.10/ kWh
201-600 units – Rs. 2.80/ kWh
> 601 units – Rs. 4.30/ kWh
Energy Charge:
0-40 units – Rs. 1.00/ kWh
41-200 units – Rs. 1.00/ kWh
201-600 units – Rs. 1.60/ kWh
> 601 units – Rs. 2.20/ kWh
Orissa
Fixed Charge:
Kutir Jyoti <=30 units/month - Rs. 80/
connection/month
Consumption<=50 units/month – Rs.
20 per kW/month
Consumption>50,<=200 units/month –
Rs. 20 per kW/month
Consumption>200,<=400units/month –
Rs. 20 per kW/month
Consumption>400 units/month – Rs.
20 per kW/month
Energy Charge:
Consumption<=50 units/month – Rs.
2.5 /kWh
Consumption>50,<=200 units/month –
Rs. 4.2/kWh
Consumption>200,<=400units/month –
Rs. 5.2/kWh
Consumption>400 units/month – Rs.
5.6 /kWh
Bihar
Fixed Charge:
BPL Rural – Unmetered – Rs. 60 per
connection per month
DS - I, Unmetered Upto 2 KW – Rs.
170 per connection per month
DS - II, Single Phase upto 7 Kw – Rs.
55 per month. Additional kW- Rs.15
per kW or part thereof per month.
DS - II, Three Phase 5 Kw and above
– Rs. 250 per month, Additional kW-
Rs.15 per kW or part thereof per
month.
Energy Charge:
BPL Rural - Metered (< 30 Units) – Rs.
1.70/kWh
BPL Urban - Metered (< 30 Units) –
Rs. 2.05/kWh
DS - I, Metered Upto 2 KW (< 50
Units) 0- Rs. 2.10/kWh
DS - I, Metered Upto 2 KW (51 - 100
Units) – Rs. 2.40/kWh
DS - I, Metered Upto 2 KW (> 100
Units) – Rs.2.80/kWh
DS – II, Metered, 1-100 units – Rs.
3.00/kWh
DS – II, Metered, 101-200 units – Rs.
3.65/kWh
DS – II, Metered, 201-300 units – Rs.
4.35/kWh
DS – II, Metered, Above 300 units –
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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State Applicable Fixed Charge (Domestic) Applicable Energy Charge
(Domestic)
Rs. 5.45/kWh
Maharashtra
Fixed Charges:
BPL – Rs. 10 per connection
Single Phase – Rs 50 per connection
Three Phase – Rs 150 per connection,
Rs 10. Per kW (above 10 kW)
Energy Charges (Rs. per unit):
Rs 0.87/kWh upto 30 Units for BPL
Rs. 3.76/kWh upto 100 Units
Rs 7.21/kWh for 101 – 300 Units
Rs 9.95/kWh for 301 – 500 Units
Rs 11.31/kWh for 501 – 1000 Units
Rs 12.50/kWh above 1000 Units
Gujarat
Fixed Charge:
BPL (< 2 KW) Rs 5 per connection
0-2 KW – Rs 15 per connection
2-4 KW – RS 25 per connection
4-6 KW – Rs 45 per connection
Above 6 KW – Rs 70 per connection
Energy Charge:
first 30 Units – Rs 1.50/kWh
0-50 Units – Rs 3.15/kWh
51-100 Units – Rs 3.60/kWh
101-200 Units – Rs 4.25/kWh
201-250 Units – Rs 4.35/kWh
Above 250 Units – Rs 5.30/kWh
Madhya
Pradesh
Fixed Charge:
Upto 50 Units – Rs 50 per connection
51- 100 Units – Rs 70 per connection
101 – 300 Units – Rs 80 for each 0.5
Kw of authorized load
Above 300 Units – Rs 85 for each 0.5
Kw of authorized load
Energy Charges:
Upto 30 Units – Rs 2.90/kWh
Upto 50 Units – Rs 3.40/kWh
51-100 Units – Rs 4.05/kWh
101-300 Units – Rs 5.20/kWh
Above 300 Units – Rs 5.70/kWh
Punjab
Fixed Charge:
<50 Kw – Rs 52 per Kw
50-100 Kw – Rs 52 per KW
Energy Charges:
Upto 100 Units – Rs 4.52/kWh
100-300 Units – Rs 6.14/kWh
Above 300 Units – Rs 6.56/kWh
Haryana
Fixed Charge:
0-2 KW – Rs 120 minimum monthly
charge
> 2 KW – Rs 70 per connection
Energy Charges:
Upto 50 Units – Rs 2.70/kWh
51-100 Units – Rs 4.50/kWh
101-250 Units – Rs 5.00/kWh
251-500 Units – Rs 6.05/kWh
Above 500 Units – Rs 6.75/kWh
Uttar
Pradesh
Fixed Charge:
Lifeline (Load = 1KW) – Rs 50 per Kw
per month
Energy Charges:
Upto 50 Units – Rs 2.00/kWh for
lifeline load
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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State Applicable Fixed Charge (Domestic) Applicable Energy Charge
(Domestic)
Load > 1KW – Rs 90 per KW per
month
51-150 Units – Rs 3.90/kWh for
lifeline load
0-150 Units – Rs 4.40/kWh
301-500 Units – Rs 5.60/kWh
Above 500 Units – Rs 6.20/kWh
Rajasthan
Fixed Charges:
BPL – Rs 90 per connection per month
<50 – Rs 90 per connection per month
<150 – Rs 180 per connection per
month
<300 – Rs 200 per connection per
month
<500 – Rs 240 per connection per
month
Energy Charges:
Upto 50 Units – Rs 3.25/kWh for BPL
Upto 50 Units – Rs 3.50/kWh
51-150 Units – Rs 5.45/kWh
151-300 Units – Rs 5.70/kWh
301 - 500 – Rs 6.00/kWh
Above 500 – Rs 6.40.kWh
Non–Domestic Service (NDS)
Applicability
This schedule shall apply to all consumers, using electrical energy for light, fan and power
loads for non-domestic purposes like shops, hospitals (govt. or private), nursing homes,
clinics, dispensaries, restaurants, hotels, clubs, guest houses, marriage houses, public
halls, show rooms, workshops, central air-conditioning units, offices (govt. or private),
commercial establishments, cinemas, X-ray plants, schools and colleges (govt. or private),
boarding/lodging houses, libraries (govt. or private), research institutes (govt. or private),
railway stations, fuel-oil stations, service stations (including vehicle service stations), All
India Radio/T.V. installations, printing presses, commercial trusts/societies, Museums,
poultry farms, banks, theatres, common facilities in multi-storied commercial
office/buildings, Dharmshala, and such other installations not covered under any other tariff
schedule.
Category of Services
a) Non-Domestic Service (NDS)–I, Rural. For Rural Area not covered by area indicated
for NDS– II and for connected load not exceeding 2 KW.
b) Non-Domestic Service (NDS) – II, Urban. For Urban Areas covered by Notified
Areas Committee / municipality / Municipal Corporation / All District Town / All Sub-
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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divisional Town / All Block Hqrs. / Industrial Area and Contiguous Sub-urban area,
market place rural or urban and for connected load up to 85KW, except for the
categories covered under NDS-III. This schedule shall also apply to commercial
consumer of rural area having connected load above 2 KW.
c) Non-Domestic Service (NDS) – III: The Board proposes a new sub-category NDS-
III for FY 2012-13. This category would be applicable to: electricity supply availed
through separate (independent) connections for the purpose of advertisements,
hoardings and other conspicuous consumption such as external flood light, displays,
neon signs at public places (roads, railway stations, airports etc.), departmental
stores, commercial establishments, malls, multiplexes, theatres, clubs, hotels and
other such entertainment/ leisure establishments.
d) Note: The electricity, that is used for the purpose of indicating/ displaying the name
and other details of the shops or Commercial premises, for which electric supply is
rendered, shall not be under this Category. Such usage of electricity shall be covered
under the prevailing tariff of such shops or commercial premises.
Service Character
1. NDS – I: - AC 50 Cycles, Single phase at 230 Volts for loads up to 2 kW
2. NDS - II: - AC 50 Cycles, Single phase at 230 Volts or Three Phase at 400 Volts for
load exceeding 2 kW and up to 85 kW
3. NDS – III: AC 50 Cycles, Single phase at 230 Volts for loads up to 3 kW, AC 50
Cycles, Three Phase at 400 Volts for load exceeding 3 Kw.
Table 32: Existing and Proposed Tariff - NDS
Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Non Domestic
NDS-I, Metered (<=2kW) (0-100)
Rs/Conn/Month
32.00 80.00 Rs/kWh 1.90 3.50
NDS-I, Metered (<=2kW) (101-250)
Rs/Conn/Month 32.00 80.00 Rs/kWh 1.90 4.00
NDS-I, Metered (<=2kW) (Above 250)
Rs/Conn/Month 32.00 100.00 Rs/kWh 1.90 4.50
NDS-I, Unmetered (<=2kW)
Rs/kW/Month 190.00 700.00 Rs/kWh 0.00 0.00
NDS-II Rs/kW/Month 190.00 400.00 Rs/kWh 5.65 6.15
NDS-III (Advertising & Hoardings)
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
0-250 Rs/Conn/Month 165.00 400.00 Rs/kWh 6.50 6.00
251-500 Rs/Conn/Month 165.00 450.00 Rs/kWh 6.50 6.50
500 and above Rs/Conn/Month 165.00 500.00 Rs/kWh 6.50 7.00
Delayed Payment Surcharge
5.15 For Non-Domestic Service category, the delayed payment surcharge shall be at the
rate of 1.5% per month and part thereof.
Installation of shunt capacitors for NDS-II
5.16 All NDS-II and NDS-III consumers having aggregate inductive load greater than 3 HP
and, shall install capacitors of required KVAR rating provided in the following table:
Table 33: Ratings of Capacitors for Inductive Load
Rating of Individual Inductive Load in HP kVAR Rating of LT capacitors
3 to 5 1
5 to 7.5 2
7.5 to 10 3
10 to 15 4
15 to 20 6
20 to 30 7
30 to 40 100
40 to 50 10 – 15
50 to 100 20 – 30
5.17 All such consumers shall be levied a surcharge at 5% on the total billed amount
charge (metered or flat), till they have installed the required capacitors.
5.18 The utility shall not release any new LT connections having aggregate inductive load
greater than 5 HP/ 4 KW unless the capacitors of suitable rating are installed.
Summary of changes proposed to NDS tariff and Rationale for change in tariff
5.19 The Petitioner has proposed a higher amount of fixed charges of Rs.700/ month per
connection for the unmetered NDS category consumers. It is again submitted that
higher fixed charge shall not only encourage the consumer to get their connections
metered but will also be important for justifying the high existing consumption by
these consumers. This is not with the intention of garnering higher revenue but it
follows the objective of bringing the consumers in the metering net and ensuring
every unit entering into the JBVNL network gets accounted for. It is requested to
Hon’ble Commission to kindly approve the fixed charges for unmetered connection
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 51
at the proposed rates only, as the existing rates do not provide any deterrent for the
unmetered sales and in fact only encourage consumers to keep their connections
unmetered.
5.20 The tariff hike has been proposed in order to move the retail tariffs for the category
closer to the Cost of Supply and for reducing the overall revenue gap for the JBVNL.
5.21 JBVNL submits below a comparison of non-domestic/ commercial category which
illustrates the lower levels of tariffs in the State for the information of the Hon’ble
Commission:
Table 34: Comparison of existing Non-domestic/ Commercial tariffs with approved tariffs in other States as per
the applicable recent tariff orders
State Applicable Fixed Charge Applicable Energy Charge
Chhattisga
rh
Fixed Charge:
<=3kW – Rs. 60 per kW/month
>3kW – Rs. 120 per kW/month
Contract demand of 15 to 75 kW – Rs. 200
per kW/month
Energy Charge:
0 – 100 units – Rs.4.40/kWh
101-500 units – Rs. 4.90/kWh
501 and above units – Rs. 6.20/kWh
Orissa
Fixed Charge:
Consumption <=100 units/month – Rs.
30/kW per month
Consumption >100, <=300 units/month –
Rs. 30/kW per month
Consumption >300 units/month – Rs.
30/kW per month
Energy Charge:
Consumption <=100 units/month –
Rs. 5.3/kWh
Consumption >100, <=300
units/month – Rs. 6.4/kWh
Consumption >300 units/month – Rs.
7/kWh
Bihar Fixed Charge:
1 Kw to 7 Kw – Rs 95 per Kw/month
Energy Charge:
1-100 units – Rs. 3.15/kWh
101-200 units – Rs. 3.95/kWh
Above 200 units – Rs. 4.85/kWh
Maharasht
ra
Fixed Charges:
0-20 KW – Rs 220 per connection
20-50 KW – Rs 220 per KVA
>50 KW – Rs 220 per KVA
Energy Charges (Rs. per unit):
Rs 6.60/kWh upto 200 Units for 0-20
KW consumers
Rs. 9.62/kWh above 200 Units for 0-
20 KW consumers
Rs 10.21/kWh for 20-50 KW
consumers
Rs 13.01/kWh for >50 KW
consumers
Gujarat
Fixed Charge:
0-10 KW – Rs 50 per KW/month
11-40 KW – RS 85 per KW/month
Energy Charge:
Rs 4.35/kWh for 0-10 KW consumers
Rs 4.65/kWh for 11-40 KW
consumers
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
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State Applicable Fixed Charge Applicable Energy Charge
Madhya
Pradesh
Fixed Charge:
LV-1 : Govt bodies:
Sanctioned load based tariff (Connected
load < 20 kW) – Rs. 100 per kW/month
Optional -Demand based Tariff (Contract
demand >10 kW and up to 20 kW) – Rs.
200 (200 per kW or 160 per kVA of billing
demand)
Mandatory demand based tariff for contract
demand above 20 kW – Rs. 160 (200 per
kW or 160 per kVA of billing demand)
LV-1 : Non-Govt bodies:
On all units if monthly consumption is not
more than 50 units – Rs. 55 per kW/month
On all units in case monthly consumption
exceeds 50 units – Rs. 95 per kW/month
Optional demand based Tariff (only for
contract demand above 10 kW and up to
20 kW) – Rs. 210 per kW/month
Mandatory demand based tariff for
Contract demand above 20 kW –Rs. 168
per kVA/month
Energy Charges:
Sanctioned load based tariff
(Connected load < 20 kW) – Rs.
5.40/kWh
Optional -Demand based Tariff
(Contract demand >10 kW and up to
20 kW) – Rs. 5.40 /kWh
Mandatory demand based tariff for
contract demand above 20 kW - Rs.
5.40 /kWh
On all units if monthly consumption is
not more than 50 units – Rs.
5.75/kWh
On all units in case monthly
consumption exceeds 50 units – Rs.
6.50 /kWh
Optional demand based Tariff (only
for contract demand above 10 kW
and up to 20 kW) – Rs. 5.55/kWh
Mandatory demand based tariff for
Contract demand above 20 kW – RS.
5.55/kWh
Punjab
Fixed Charge:
Loads<=50KW – Rs. 190/kW
50KW<Loads<=100 KW (1st April'15-30th
Sep'15) – Rs. 190/kW
50KW<Loads<=100 KW (1st Oct'15-31st
March'15) – Rs. 171/kVA
Loads>100KW – Rs. 171/kVA
Energy Charges:
Upto 100kWh – Rs. 6.53/kWh
Above 100kWh – Rs. 6.75/kWh
Upto 100kWh – Rs. 5.88/kVah
Above 100kWh – Rs. 6.08/kVah
Upto 100kWh – Rs. 6.01/kVah
Above 100kWh – Rs. 6.10/kVah
Haryana
Fixed Charge:
Upto 5kW – Rs. 0 (Rs. 250 MMC per KW
per month)
Above 5kW and upto 20kW – Rs. 0 (Rs.
225 MMC per KW per month)
Above 20kW and upto 50kW – Rs.170/kW
Existing Consumers above 50kW upto
70kW (LT) – Rs. 170/kW
Consumer above 50kW (HT) – Rs. 170/kW
Energy Charges:
All Units – Rs. 6.05/kWh
All Units- Rs. 6.75/kWh
All Units – Rs. 6.15/kVah
All Units – Rs. 6.50/kVah
All Units – Rs. 6.30/kVah
Uttar
Pradesh
Fixed Charge:
Rs. 225 per KW/month
Energy Charges:
0-300 – Rs. 6.70/kWh
301-1000 – Rs. 7.10/kWh
>1001 – Rs. 7.25/kWh
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State Applicable Fixed Charge Applicable Energy Charge
Rajasthan
Fixed Charges:
Slab Rate Unit
<5K
W
<100 210
Rs per
connectio
n
<200 210
Rs per
connectio
n
<500 250
Rs per
connectio
n
>500 300
Rs per
connectio
n
>5k
W
SCL
<18.65 kW 85
Rs./kW
per month
SCL>18.6
5 kW 95
Rs./kW
per month
Energy Charges:
Slab Rate Unit
0-100 6.75 /kWh
101-200 7.15 /kWh
201-500 7.45 /kWh
501+ 7.85 /kWh
Low Tension Industrial & Medium Power Service (LTIS)
Applicability
This schedule shall apply to all industrial units for a load of less than or equal to 100 KVA
(or equivalent in terms of HP or KW). The equivalent HP for 100 KVA shall be 114 HP and
the equivalent KW for 100 KVA shall be 85 KW.
The total installed load shall not exceed the sanctioned load.
Category of Services
a) LTIS – AC, 50 Cycles, Single Phase supply at 230 Volts or 3 Phase Supply at 400
volts for use of electricity energy Demand Based tariff upto 100 KVA and under
Installation based tariff for sanctioned load upto equivalent HP of 100 KVA.
Table 35: Existing and Proposed Tariff - LTIS
Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Low Tension Industrial & Medium Power Service (LTIS)
LTIS (Demand
based Tariff)
Rs/kVA/
Month 255.00 350.00 Rs/kWh 5.30 5.75
LTIS
(Installation
based Tariff)
Rs/HP/
Month 140.00 200.00 Rs/kWh 5.30 5.75
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5.22 All consumers under this category and opting for Demand Based tariff shall be
required to pay Demand charges per KVA at the rate applicable to HT consumers
drawing power at 11 KV. The billing demand will be the maximum demand recorded
during the month or 75% of the sanctioned load, whichever is higher. All consumers
under this category and opting for Installation based tariff shall be required to pay
fixed charges per HP on the sanctioned load as per the applicable tariff rates for this
category.
Delayed Payment Surcharge
5.23 For Low tension industrial and medium power category, the delayed payment
surcharge shall be at the rate of 1.5% per month and part thereof.
Power factor penalty
5.24 Power Factor Penalty shall be applicable in case of maximum demand meters.
5.25 In case average power factor in a month for a consumer falls below 0.85, a penalty
@ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for every 0.01 fall
below 0.60 to 0.30 (up to and including 0.30) shall be levied on demand and energy
charges.
Power factor rebate
5.26 Power Factor Rebate shall be applicable in case of maximum demand meters.
5.27 In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand and
energy charge shall be applicable.
Installation of shunt capacitors
5.28 All consumers having aggregate inductive load greater than 3 HP and above, shall
install capacitors of required KVAR rating provided in the following table:
Table 36: Ratings of Capacitors for Inductive Load
Rating of Individual Inductive Load in HP kVAR Rating of LT capacitors
3 to 5 1
5 to 7.5 2
7.5 to 10 3
10 to 15 4
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Rating of Individual Inductive Load in HP kVAR Rating of LT capacitors
15 to 20 6
20 to 30 7
30 to 40 100
40 to 50 10 – 15
50 to 100 20 – 30
5.29 All such consumers shall be levied a surcharge at 5% on the total billed amount
charge (metered or flat), till they have installed the required capacitors.
5.30 The utility shall not release any new LT connections having aggregate inductive load
greater than 5 HP/ 4 KW unless the capacitors of suitable rating are installed.
5.31 The utility shall not release any new LTIS connections having aggregate inductive
load greater than 5 HP/ kVA unless the capacitors of suitable rating are installed.
Summary of changes proposed to LTIS tariff and rationale for change in tariff
5.32 Tariff hike has been proposed in order to move the retail tariffs for the category closer
to the Cost of Supply and for reducing the overall revenue gap for the JBVNL.
Irrigation & Agriculture Service (IAS)
Applicability
This schedule shall apply to all consumers for use of electrical energy for Agriculture
purposes including tube wells and processing of the agricultural produce, confined to Chaff-
Cutter, Thresher, Cane crusher and Rice-Hauler, when operated by the agriculturist in the
field or farm and does not include Rice mills, Flour mills, Oil mills, Dal mills, Rice-Hauler or
expellers.
Category of Services
a) IAS – I –For private tube wells and private lift irrigation schemes.
b) IAS – II – For State Tube-wells and State lift Irrigation schemes.
Service Character:
a) AC 50 Cycles, Single Phase at 230 volts / 3 Phase at 400 volts
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Table 37: Existing and Proposed Tariff - IAS
Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Irrigation & Agriculture
IAS - I Metered Rs/HP/Month 0.00 0.00 Rs./kWh 0.65 1.50
IAS - I Unmetered
Rs/HP/Month 75.00 300.00 Rs./kWh 0.00 0.00
IAS - II Metered Rs/HP/Month 0.00 0.00 Rs./kWh 1.10 2.00
IAS - II Unmetered
Rs/HP/Month 300.00 500.00 Rs./kWh 0.00 0.00
Delayed Payment Surcharge
5.33 For Irrigation and agriculture service category, the delayed payment surcharge shall
be at the rate of 1.5% per month and part thereof.
Power factor penalty
5.34 In case average power factor in a month for a consumer falls below 0.85, a penalty
@ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for every 0.01 fall
below 0.60 to 0.30 (up to and including 0.30) shall be levied on demand and energy
charges.
Power factor rebate
5.35 In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand and
energy charges shall be applicable.
Summary of changes proposed to IAS tariff and rationale for change in tariff
5.36 Tariff hike has been proposed in order to move the retail tariffs for the category closer
to the Cost of Supply and for reducing the overall revenue gap for the JBVNL.
5.37 The Petitioner has proposed a revision in fixed charges from current Rs. 75/ month
per connection to Rs.300/ month per connection for the unmetered IAS-I category
consumers. It is submitted that higher fixed charge shall not only encourage the
consumer to get their connections metered but will also be important for justifying the
high existing consumption by these consumers. It is requested to Hon’ble
Commission to kindly approve the fixed charges for unmetered connection at the
proposed rates only, as the existing rates do not provide any deterrent for the
unmetered sales and in fact only encourage consumers to keep their connections
unmetered. Change in Tariff will also lead to the energy efficient measures like
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installation of energy efficient pumps etc from IAS consumers.
Table 38: Comparison of existing IAS tariffs with approved tariffs in other States as per the applicable recent
tariff orders
State Applicable Fixed Charge Applicable Energy Charge
Chhattisgarh Fixed Charge:
Rs 70/HP/Month
Energy Charge:
Rs 3.15 per kWh
Bihar
Fixed Charge:
Unmetered Rural Feeder – Rs. 120/HP per
month
Unmetered Urban Feeder – Rs. 160/HP per
month
Metered Rural Feeder – Rs. 85/HP per
month
Metered Urban Fedeer – Rs. 130/HP per
month
Energy Charge:
Metered Urban Feeder – Rs. 1.1/kWh
Metered Rural Feeder – Rs. 1.7/kWh
Orissa
Fixed Charge:
Irrigation Pumping and Agriculture – Rs.
20/Kw per month
Allied Agricultural Activities – Rs. 20/kW per
month
Allied Agro-Industrial Activities – Rs. 80/kW
per month
Energy Charge:
Irrigation Pumping and Agriculture – Rs.
1.5/kWh
Allied Agricultural Activities – Rs.
1.6/kWh
Allied Agro-Industrial Activities – Rs.
4.2/kWh
Maharashtra
Fixed Charge:
Unmetered pump sets:
0-5 HP – Rs. 374/HP/month
Above 5 HP – Rs. 406/HP/month
Category 2 Zones
0-5 HP – Rs. 283/HP/month
Above 5 HP – Rs. 310/HP/month
Metered pump sets:
Rs. 20/HP/month
Energy Charge:
Unmetered pump sets – NIL
Metered pump sets:
Rs. 2.58/kWh
Gujarat
Fixed Charge:
Unmetered – Rs. 200/HP/month
Metered – Rs. 20/HP/month
Energy Charge:
Rs. 0.60 per kWh
Madhya
Pradesh
Fixed Charge:
Rs 25/HP/month
Energy Charge:
First 300 units per month – Rs. 3.55 per
kWh
Above 300 units up to 750 units in the
month – Rs. 4.20 per kWh
Rest of the units in the month – Rs.
4.50 per kWh
Punjab
Fixed Charge:
Rs 338/BHP per month for Unmetered
consumers
Energy Charge:
Rs 4.58 per kWh for Metered
consumers
Haryana
Fixed Charge:
Slab Rate Unit
Metered
With
Motor
upto 15
200
Rs./BHP
per
Year
Energy Charge:
Slab Rate Unit
All Units
0.10 /kWh
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State Applicable Fixed Charge Applicable Energy Charge
BHP
Metered:
With
Motor
above
15 BHP
200
Rs./BHP
per
Year
UnMetered
With
Motor
upto 15
BHP
15
Rs./BHP
per
month
With
Motor
above
15 BHP
12
Rs./BHP
per
month
All Units
0.08 /kWh
All Units
- /kWh
All Units
- /kWh
Uttar
Pradesh
Fixed Charge:
Unmetered – Rs. 100/BHP per month
Metered – Rs. 30/BHP per month
Energy Charge:
Metered – Rs. 1.00/kWh
Rajasthan
Fixed Charge:
Metered – Rs. 15/HP per month
Unmetered – Rs. 15/HP per month
Energy Charge:
Metered – Rs. 4.50 per kWh
Unmetered – Rs. 600.00 HP per month
High Tension Voltage Supply Service (HTS)
Applicability
The schedule shall apply for all consumers (excluding induction/ arc furnaces) having
contract demand above 100 KVA.
Service Character
Service Character Contract Demand
50 Cycles, 3 Phase at 6.6 KV / 11
KV
100 KVA to 1 MVA
50 Cycles, 3 Phase at 33 KV 1 MVA to 10 MVA
50 Cycles, 3 Phase at 132 KV 7.5 MVA to 40 MVA
50 Cycles, 3 Phase at 220 KV 15 MVA to 150 MVA
50 Cycles, 3 Phase at 400 KV 30 MVA and above
Table 39: Existing and Proposed Tariff - HTS
Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
HTS
HTS - 11KV Rs/kVA/
Month 255 350.00 Rs./kWh 5.85 6.35
HTS - 33KV Rs/kVA/ 255 400.00 Rs./kWh 5.85 6.35
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Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Month
HTS - 132KV Rs/kVA/
Month 255 450.00 Rs./kWh 5.85 6.35
5.38 For billing demand shall be the maximum demand recorded during the month or 85%
of contract demand whichever is higher.
5.39 The penalty on exceeding contract demand shall be 1.5 times the normal charges for
actual demand exceeding 110% of the contracted demand; the penal charges shall
be applicable on exceeded demand w.r.t. the Contract demand only.
Voltage Rebate
5.40 Voltage rebate to the HTS consumers shall be applicable as given below:
Consumer Category Voltage Rebate
HTS – 33KV 3.00%
HTS – 132KV 5.00%
5.41 Load Factor rebate to the HT Consumers is proposed as given below:
Consumer Category Voltage Rebate
40-60% Nil
60-70% 7.5%
70-100% 10%
Delayed Payment Surcharge
5.42 For High tension service category, the Delayed Payment Surcharge will be charged
on a weekly basis at the rate of 0.4% per week.
Power factor penalty
5.43 In case average power factor in a month for a consumer falls below 0.85, a penalty
@ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for every 0.01 fall
below 0.60 to 0.30 (up to and including 0.30) shall be levied on demand and energy
charges.
Power factor rebate
5.44 In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand and
energy charges shall be applicable.
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ToD Tariff for HTS Consumers
5.45 TOD tariff proposed for HTS Consumers is given below:
Off Peak Hours: 10:00 PM to 06:00 AM: 85% of normal rate of energy charge.
Peak Hours: 06:00 AM to 10:00 AM & 06:00 PM to 10:00 PM: 120% of normal rate
of energy charge.
5.46 Load factor rebate and power factor rebate shall not be allowed to consumers with
outstanding arrears.
Summary of changes proposed to HTS tariff and rationale for change in tariff
5.47 Petitioner has proposed for the revision of fixed charge and variable charge for HTS
category as this consumer category consumes a higher electricity and have the
higher economic resources to pay for such consumption.
5.48 Tariff hike has also been proposed in order to move the retail tariffs for the category
closer to the Cost of Supply and for reducing the overall revenue gap for JBVNL.
High Tension Special Service (HTSS)
Applicability
This tariff schedule shall apply to all consumers who have a contracted demand of 300 KVA
and more for induction/arc Furnace. In case of induction/arc furnace consumers (applicable
for existing and new consumers), the contract demand shall be based on the total capacity
of the induction/arc furnace and the equipment as per manufacturer technical specification
and not on the basis of measurement. This tariff schedule will not apply to casting units
having induction furnace of melting capacity of 500 Kg or below.
Service Character
3 (Three Phase), 50 Cycles. The supply to induction furnace shall be made only after
ensuring that the loads sanctioned are corresponding to the load requirement of tonnage of
furnace. The minimum load of one tonne furnace shall in no case be less than 600 KVA and
all load will be determined on this basis. No supply will be for loads below this norm.
Table 40: Existing and Proposed Tariff - HTSS
Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
HT Specials
HTSS - 11KV Rs/kVA/
Month 410.00 500.00 Rs./kWh 3.50 4.50
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Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
HTSS - 33KV Rs/kVA/
Month 410.00 500.00 Rs./kWh 3.50 4.50
HTSS - 132KV Rs/kVA/
Month 410.00 500.00 Rs./kWh 3.50 4.50
5.49 The billing demand shall be the maximum demand recorded during the month or 75%
of the contract demand, whichever is higher. In case higher actual demand is
recorded for three continuous months, the same shall be treated as the new contract
demand for the purpose of billing of future months and the consumer will get into a
new Agreement for the revised contracted demand.
5.50 The penalty on exceeding contract demand shall be 1.5 times the normal charges for
actual demand exceeding 110% of the contracted demand; the penal charges shall
be applicable on exceeded demand w.r.t. the Contract demand only.
Voltage Rebate
5.51 Voltage rebate to the HTSS consumers shall be applicable as given below:
Consumer Category Voltage Rebate
HTS – 33KV 3.00%
HTS – 132KV 5.00%
5.52 Load Factor rebate to the HT Consumers is proposed as given below:
Consumer Category Voltage Rebate
40-60% Nil
60-70% 7.5%
70-100% 10%
Delayed Payment Surcharge
5.53 For High tension special service category, the Delayed Payment Surcharge will be
charged on a weekly basis at the rate of 0.4% per week. The due date for making
payment of energy bills or other charges shall be fifteen days from the date of serving
of bill. The bill should be generated and delivered on monthly basis. In case, the
licensee defaults in generating and delivering bills on monthly basis, DPS will not be
charged for the period of default by licensee
Power factor penalty
5.54 In case average power factor in a month for a consumer falls below 0.85, a penalty
@ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for every 0.01 fall
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below 0.60 to 0.30 (up to and including 0.30) shall be levied on demand and energy
charges.
Power factor rebate
5.55 In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand and
energy charges shall be applicable.
Summary of changes proposed to HTSS tariff
5.56 Petitioner has proposed for the revision of fixed charge and variable charge for HTSS
category as this consumer category consumes a higher electricity and have the
higher economic resources to pay for such consumption.
5.57 Tariff hike has also been proposed in order to move the retail tariffs for the category
closer to the Cost of Supply and for reducing the overall revenue gap for JBVNL.
Railway Traction Service (RTS)
Applicability
This tariff schedule shall apply for use of railway traction only.
Service Character
AC, 50 cycles, single phase at 25 KV or 132 KV
Table 41: Existing and Proposed Tariff - RTS
Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Traction
RTS Rs/kVA/
Month 235 235 Rs/kWh 5.35 6.30
5.58 For billing demand shall be the maximum demand recorded during the month or 85%
of contract demand whichever is higher.
Maximum Demand for RTS
5.59 The demand charge shall be applied on maximum demand recorded or contract
demand whichever is higher at any fifteen minutes time block for which the meter
installed should have 15 minutes integration time.
Delayed Payment Surcharge
5.60 For Railway Traction service category, the delayed payment surcharge shall be at
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the rate of 0.4% per month and part thereof.
Power Factor Penalty
5.61 In case average power factor in a month for a consumer falls below 0.85, a penalty
@ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus 2% for every 0.01 fall
below 0.60 to 0.30 (up to and including 0.30) shall be levied on demand and energy
charges.
Power Factor Rebate
5.62 In case average power factor as maintained by the consumer is more than 85%, a
rebate of 1% and if power factor is more than 95%, a rebate of 2% on demand and
energy charges shall be applicable.
5.63 Load factor rebate and power factor rebate shall not be allowed to consumers with
outstanding arrears.
Summary of changes proposed to Railway Traction Service (RTS Tariff) and rationale for change in tariff
5.64 Tariff hike has been proposed in order to move the retail tariffs for the category closer
to the Cost of Supply and for reducing the overall revenue gap for the JBVNL.
Street Light Service (SS)
Applicability
This tariff schedule shall apply for use of Street Lighting system, including single system in
corporation, municipality, notified area committee, panchayats etc. and also in areas not
covered by municipalities and Notified Area Committee provided the number of lamps
served from a point of supply is not less than 5.
Category of Services
a) S.S-I: Metered Street Light Service b) S.S-II: Unmetered Street Light Service
Service Character
AC, 50 cycles, Single phase at 230 Volts or three phase at 400 Volts
Table 42: Existing and Proposed Tariff - RTS
Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
Street Light Service
SS - I (Metered) Rs/Conn
/Month 38 350.00 Rs/kWh 4.80 6.00
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Consumer
Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
SS - II
(Unmetered)
Rs/Conn
/Month 150 500.00 Rs/kWh 0.00 0.00
Delayed Payment Surcharge
5.65 For Street light service category, the delayed payment surcharge shall be at the rate
of 1.5% per month and part thereof.
Summary of changes proposed to Street light Service (SS tariff)
5.66 Revision ion fixed charges from current Rs. 150/ month per connection to Rs. 300/
month per connection has been proposed for unmetered SS category. This is done
to encourage the consumer to get their connections metered as well as to recover
the every unit entering into the JBVNL network. Also a slight revision in SS-II has
been proposed with objective to bring down the gap between ARR and ACS.
Bulk Supply to Military Engineering Service (MES)
Applicability
This tariff schedule shall apply to Military Engineering Services (MES) for a mixed load in
defence cantonment and related area.
Category of Services
MES for supply to bulk supply to military engineering services/cantonment areas.
Service Character
AC, 50 cycles, Three phase at 11 kV.
Table 43: Existing and Proposed Tariff – MES
Consumer Category
Fixed Charge Energy Charge
Unit Existing Proposed Unit Existing Proposed
MES
MES Rs/kVA/Month
230 350 Rs/kWh 4.35 5.00
5.67 For billing demand shall be the maximum demand recorded during the month or 85%
of contract whichever is higher.
Delayed Payment Surcharge
5.68 For Military Engineering service category, the Delayed Payment Surcharge will at the
rate of 0.4% per month and part thereof.
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5.69 Load factor rebate and power factor rebate shall not be allowed to consumers with
outstanding arrears.
Summary of changes proposed to MES Service
5.70 Tariff hike has been proposed in order to move the retail tariffs for the category closer
to the Cost of Supply and for reducing the overall revenue gap for the JBVNL.
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6. Demand Side Management (DSM) Fund Creation and levy of DSM Charge
6.1 In its endeavour to become a vibrant and efficient utility, JBVNL is consistently striving
to initiate innovative measures to increase efficiency in its operations. With the same
objective, the Petitioner intends to promote Energy Efficiency (EE) and energy
conservation through various Demand Side Measures (DSM) in the state. The
emphasis on DSM measures is also necessary in view of the potential for reduction
in gap between Average Cost of Supply and Average Revenue Realization.
6.2 Various states across the country have made significant strides in implementing DSM
programs through utility led initiatives. Such program and activities have resulted in
substantial energy and cost savings as well as reduced AT&C losses.
6.3 A DSM Coordination Committee has been widely accepted and recognized as a best
practice in successfully driving the extensive adoption of DSM programs. On similar
lines, the constitution of Jharkhand DSM Coordination Committee (JDCC) is
presently underway.
6.4 However, it has been observed that the financial limitation is one of the major barrier
in undertaking Energy Efficiency (EE) projects, which arise due to a variety of sectoral
issues as limited financial resources with DISCOMs to spare for EE projects. The
Energy Services Company (ESCO) route is often the preferred model adopted to
undertake EE projects, however, ESCOs are also under-capitalized to undertake
large value projects. Also, financial institutions have limited experience in lending to
EE projects thus making it a high risk venture for them. In addition, the customers
targeted under the programs are also not perceived credit worthy by FIs.
6.5 Thus, there is a need to establish a funding mechanism to support the Petitioner in
independently undertaking DSM activities in its area of license. The support of
Hon’ble Commission in establishing a DSM fund can address this barrier and lead to
initiation of DSM activities by JBVNL in the state. The main purpose of creating the
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fund is to stimulate the market and support implementation of cost effective activities
that shall support EE by various direct and indirect DSM measures with this fund. The
details of fund sourcing, management and potential utilization avenues are discussed
in details in the following paragraphs.
Fund sourcing
6.6 Considering the need of JBVNL’s initiative in implementing DSM, it is proposed that
a mechanism be established for creation and continuous replenishment of a fund.
For the same, it is proposed that, an Energy Conservation Charge or DSM Cess can
be added to energy charges under the approved tariff for various consumer
categories.
6.7 It is proposed that a charge ranging from a rate of only Rs. 0.01/kWh to Rs.0.05/kWh
may be charged from different consumer categories. With the proposed mix of energy
sales to consumers for JBVNL for FY 16-17, an estimated collection of Rs.13.06
Crore is expected annually as detailed in table below. It is submitted that for the
consumers with unmetered sales, a fixed rate of DSM cess may be levied. It is also
requested that the DSM cess proposed may be revised by the Hon’ble Commission
in subsequent years based on the proposed program and fund requirement thereof.
Table 44: Estimated collection from levy of proposed Energy Conservation Charge
Category Proposed DSM
surcharge (Rs/kWh)*
Sales/ Consumers*
Revenue expected (Rs Crs)
Domestic (DS)
DS-I (a), Kutir Jyoti (metered) (0-50) 0.01 259.65 0.26
DS-I (a), Kutir Jyoti (metered) (51-100) 0.01 108.19 0.11
DS-I (a), Kutir Jyoti (unmetered) 5.00 439,115* 0.22
DS-I (b),Metered (1-100) 0.01 265.88 0.27
DS-I (b),Metered (101-200) 0.01 578.00 0.58
DS-I (b),Metered (above 201) 0.01 606.04 0.61
DS-I (b), Other Rural Domestic Connections (Unmetered)
5.00 527,857* 0.26
DS-II, <= 4 KW -
0-100 0.02 286.40 0.57
100-250 0.02 645.99 1.29
251 - 500 0.02 590.08 1.18
501 and above 0.02 621.29 1.24
DS-III, Above 4 kW -
0-250 0.05 244.17 1.22
250 and above 0.05 246.89 1.23
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Category Proposed DSM
surcharge (Rs/kWh)*
Sales/ Consumers*
Revenue expected (Rs Crs)
DS HT 0.05 1.20 0.01
Non Domestic
NDS-I, Metered (<=2kW) (0-100) 0.01 9.76 0.01
NDS-I, Metered (<=2kW) (Above 101-250) 0.01 8.35 0.01
Above 250 0.01 6.68 0.01
NDS-I, Unmetered (<=2kW) 5.00 3,811* 0.00
NDS-II 0.02 437.88 0.88
NDS-III (Advertising & Hoardings)
0-250 0.02 8.06 0.02
251-500 0.02 8.06 0.02
501 and above 0.02 10.75 0.02
Low Tension Industrial & Medium Power Service (LTIS)
LTIS (Demand based Irrigation) 0.01 24.99 0.02
LTIS (Installation based Tariff) 0.01 157.44 0.16
Irrigation & Agriculture
IAS - I Metered 0.01 242.40 0.24
IAS - I Unmetered 5.00 21,000* 0.01
IAS - II Metered 0.01 - -
IAS - II Unmetered 5.00 7,000* 0.00
HTS
HTS - 11KV 0.01 499.34 0.50
HTS - 33KV 0.01 499.34 0.50
HTS - 132KV 0.01 499.34 0.50
HT Specials
HTSS - 11KV 0.01 290.00 0.29
HTSS - 33KV 0.01 290.00 0.29
HTSS - 132KV 0.01 290.00 0.29
Traction
RTS 0.01 222.00 0.22
Street Light Service
SS - I (Metered) 0.01 7.33 0.01
SS - II (Unmetered) 0.01 516.53* 0.00
MES 0.01 15.73 0.02
Total DSM Fund 13.06
6.8 It is prayed to the Hon’ble Commission to kindly consider the submission of the
Petitioner and allow creation of such DSM fund. The amount enumerated above for
each consumer category shall be levied as a surcharge and shall not form part of the
existing ARR of the Petitioner. The DSM fund shall be an entirely separate fund
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deposited in a dedicated bank account and shall only be utilized for the purpose of
DSM activities with the information of Hon’ble Commission. The fund management
structure is discussed in the following paragraphs.
Fund Management
6.9 This fund shall be utilized by the Petitioner under direct supervision of State Level
coordination committee, i.e. JDCC. The Petitioner shall submit an annual DSM plan
to JDCC for approval of fund utilization and any proposal for any specific DSM
program that it may plan to undertake during the year. This shall then be scrutinized
by the committee, which shall then approve disbursal of funds form the DSM fund.
The figure below illustrates the proposed fund sourcing, management and utilization
model.
Figure 4: Proposed DSM Fund Model
6.10 JBVNL shall submit detailed proposal for each such initiatives with the Hon’ble
Commission as well for its information. Further, it is proposed that every year, the
details of DSM fund collected and the expenditure incurred shall also be submitted to
the Hon’ble Commission along with the tariff petition.
Potential Fund Utilization Avenues
6.11 There has been a rising concern about addressing environmental issues emanating
from inefficient energy consumption patterns of utilities and thus Governments have
been striving to support EE measures and induce lower energy demands. Energy
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conservation awareness is one of the first steps in initiating energy saving behaviour
of consumers. However, energy cost is an overriding factor that influences
consumption behaviour amongst all consumer categories. Majority of consumers
would willingly shift to EE devices and adopt EE practices to reduce their energy costs
provided there are well informed dissemination programs structured to educate and
make aware the consumer groups about the benefits of energy conservation.
Investing in consumer awareness programs and enlightening consumers about their
energy consumption behaviour and encouraging them to adopt energy efficient
practices to bring economic advantages along with environmental benefits can reap
long term results for the utility.
6.12 In the above aspect, Petitioner proposes to commence program for proactive
communications and engagement with people of Jharkhand to spread awareness
about Energy Efficiency and Demand Side Management (DSM) interventions by
utilizing the DSM Fund. Some of the proposed programs that may be initiated include:
a. Energy Conservation Day
b. School Children Engagement Program
c. Domestic Consumer Awareness
d. Workshop for Industrial Consumers
e. Workshop for Municipal Workforce
f. Awareness Drive in Govt. Buildings
g. State Energy Conservation Awards
h. Utility Capacity Building Program
i. Awareness campaigns for agriculture consumers
6.13 JBVNL shall submit detailed proposal for such initiatives as and when it aims to
undertake such program. The impact of such DSM programs shall not only be limited
to the Petitioner, it is the consumer who would be the ultimate beneficiary. The two
way benefits of reduced consumption leading to decrease in energy bills and a
sustained distribution utility with lower ACS ARR gap shall ensure larger benefits to
the State of Jharkhand.
6.14 Hence, it is humbly submitted that such a small amount of DSM Cess may kindly be
allowed to be levied on the energy consumption as proposed above.
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7. Schedule of Charges
1. Background
7.1 Hon’ble commission has notified the first supply code as JSERC (Electricity Supply
Code), Regulations, 2005 for JSEB which was constituted on March 10, 2001 under
the Electricity (Supply) Act, 1948 as a result of the bifurcation of the erstwhile State
of Bihar. Also, the Hon’ble Commission has approved miscellaneous charges for
JSEB in the in the Tariff Order of FY 06-07. Petitioner has filed various petitions which
includes revision of miscellaneous charges. However, Hon’ble Commission has not
considered the proposed miscellaneous charges due to lack of justification provided
for the proposed charges as mentioned in tariff order for FY 2010-11. After that 3
more Tariff orders (for FY 11-12, FY 12-13 and FY 15-16) have been issued by the
Hon’ble Commission, however, no revision in miscellaneous charges have been done
by the Hon’ble Commission. Also, a new Supply code named JSERC Supply Code,
Regulations, 2015 has been notified on 09.09.2015 under which the miscellaneous
charges taken are same as of charges in FY 06-07. It can noted that the present
miscellaneous charges are decade old and no revision has been done in last 10
years. The present charges and proposed charges are discussed in the following
sections.
2. Rationale for increase of Miscellaneous charges
a) Inflation last 10 years
7.2 As discussed in the above section, that there has not been any revision in
miscellaneous charges in last 10 years. However, inflation in last 10 years (FY 05-06
to FY 14-15) has been increased with an annual rate of 6.52% considering both CPI
and WPI index. Inflation calculated above is as per the provision for O&M expenses
as per Tariff Regulations 2015. In line with the JSERC Regulations 2015, it is
submitted that the inflation factor has been estimated based on the actual Wholesale
Price Index (WPI) and Consumer Price Index (CPI) for FY 2005-06 and FY 2014-15.
The table below provides the computation of Inflation factor:
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Table 45: Inflation of last 10 Years
Index 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CAG
R
CPI 123 131 142 157 176 192 209 232 247 261 7.83%
WPI 110 115 125 128 140 153 165 175 182 177 4.91%
Period WPI CPI
Increase of FY 2014-15 Index over FY 2005-06
4.91% 7.83%
Weighted 0.45 0.55
Weighted Index 2.21% 4.31%
Combined Inflation 6.52%
b) Labour rates
7.3 It can be noted that charges for meter fixing, installation and removing is just Rs 50
for single phase as per the current schedule of miscellaneous charges. However, the
labour charges for a skilled worker is Rs 290/day as per the Department of Labour,
employment & Training, Government pf Jharkhand. Hence, it is noteworthy that the
current miscellaneous charges are not complying with the industry standards and
need to be revised to bring them to a realistic level.
c) Miscellaneous charges in other neighbor states
7.4 JBVNL is the distribution utility with one of the lowest miscellaneous charges in the
country. Even neighbouring States like Bihar, Odisha, Chhattisgarh and West Bengal
have significantly higher charges. This is majorly due to non-revision of charges in
the last 10 years. A head wise detailed comparative analysis has been provided in
the respective sections.
3. Petition for revised schedule of charges
7.5 Considering the above factors like inflation and present labour rates and in line with
miscellaneous charges applicable in other neighbour, JBVNL would like to propose
revised schedule of miscellaneous charges.
7.6 It is noteworthy that Jharkhand was constituted as a result of the bifurcation of the
erstwhile State of Bihar on 15 November 2000. However, both the state share the
same demography and geography. It can be seen in the below sub-sections that
Bihar being the neighboring state of Jharkhand has comparatively high miscellaneous
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charges. However, if prevailing labour charges are compared for both the states,
Bihar has comparatively low labour charges than Jharkhand as same can be depicted
form the table below.
Table 46: Minimum wages in Jharkhand and Bihar
Class of employee Jharkhand Bihar
Unskilled 210 194
Semi-skilled 220 203
Skilled 290 290
Highly-skilled 335 335
7.7 In line with the prevalent miscellaneous charges applicable in state of Bihar, JBVNL
has proposed its schedule of miscellaneous charges. A detailing of JBVNL current
rates and proposed rates along with comparison with other states are provided in the
following sub-sections.
a) Charges related to service connection
7.8 In this section charges related to service connection like application fees for new
connection, revision of estimate when a consumer intimates changes in his requirement
subsequent to the preparation of service connection estimate based on his original
application, testing of consumers Installation and disconnection/ reconnection are
discussed. In line with the prevalent miscellaneous charges applicable in state of Bihar,
JBVNL has proposed new miscellaneous charges. Also, a comparison of charges from
other state like Maharashtra and Chhattisgarh along with current charges of JBVNL is
provided in the table below.
Table 47: Charges related to Service Connection
S No. Particulars
Scale of Charges
JBVNL (Present)
JBVNL (Propose
d)
Maharashtra
Bihar Chhattisg
arh
1 Application fee
Domestic
Rs 15 (Kutir Jyoti)
Rs 20 (Others)
Rs. 30(Kutir
Jyoti) Rs. 40
(Others)
1 ph- Rs. 50,
3 Ph- Rs. 75,
HT- Rs. 200
1 ph- Rs. 75,
(L.T) 3 Ph-Rs. 200,
(L.T) Industrial- Rs. 300
HT- Rs. 750
(L.T) consumers-Rs. 200,
(L.T) Industrial consumer
s- Rs. 1000
HT- Rs. 5,000
Commercial Rs 20
1 ph- Rs. 75,
(L.T) 3 Ph-Rs.
200
Agriculture Rs 10 1 ph- Rs.
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S No. Particulars
Scale of Charges
JBVNL (Present)
JBVNL (Propose
d)
Maharashtra
Bihar Chhattisg
arh
75,
(L.T) 3 Ph-Rs.
200
Street light Rs 20
1 ph- Rs. 75,
(L.T) 3 Ph-Rs.
200
Other LT Supply Rs 50 Rs 300
HT Supply Rs 100 Rs 750
HTSS, EHTS, RTS Rs 100 Rs 750
2 Revision of estimate when a consumer intimates changes in his requirement subsequent to the preparation of service connection estimate based on his original application
Agriculture Rs 10
Same as
application fee
Same as
application fee
Same as
application fee
Domestic Rs 30
Commercial Rs 30
Other LT categories
Rs 50
HT Supply Rs 150
3 Testing of consumers Installation
Testing / Inspection charge subsequent to the first one
Rs 100
Single ph - Rs 100
for
Three ph - Rs 200
HT Supply - Rs 800
Rs 100
Single ph - Rs 100
for
Three ph - Rs 200
HT Supply - Rs 800
Rs 200
4 Disconnection/ Reconnection
Single phase
Rs 30
Dis-con: Rs. 75, Re-con- Rs. 100
Dis-con: Rs. 75, Re-con- Rs. 100
Rs. 60
3-ph LT up to 25 HP/19 KW
Rs 75 Rs 200
Rs. 200
Rs. 150
3- ph LT above 25 HP/19 KW
Rs. 500
LT Industrial Supply
Rs 300
Dis-con: Rs. 300, Re-con- Rs. 900
Dis-con: Rs. 300, Re-con- Rs. 900
HT Connection up to 5 MVA
Rs 500
Dis-con: Rs. 750, Re-con-
Rs. 3,000
Dis-con: Rs. 750, Re-con-
Rs. 3,000
Rs. 1,750
HT Connection above 5 MVA
Rs. 2,500
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b) Electricity Connection Charges
7.9 In this section charges related to electricity connection like service line charges and
development charges are discussed and a new methodology for considering these
charges is proposed by the Petitioner. As provided in the clause 3.2 of JSERC
Electricity Supply Code 2015, the Petitioner is authorized to recover all charges
incurred in providing service line by means of laying distribution network facility. The
same is reproduced below-
3.2.1 The Distribution Licensee shall be authorized to recover from the applicant all
expenses reasonably incurred in laying the service line from the distribution mains to
the point of supply based on the schedule of charges approved by the Commission
from time to time.
3.2.2 Where the provision of supply to an applicant requires works of installation of
dedicated distribution facilities, the Distribution Licensee shall be authorized to
recover all expenses reasonably incurred on such works from the applicant based on
the schedule of charges approved by the from time to time.
7.10 The above methodology under Supply code is in interest of the utility to recover all
expenses incurred in providing electricity connection which includes laying of service
line and installation of dedicated distribution facilities from applicant. Here JBVNL
would like to submit to the Hon’ble Commission that electricity connection including
laying of service lines and other associated charges to BPL consumers are provided
free of cost under DDUGJY scheme while utility charges the electricity connection
charges to APL consumers as per the Supply Code 2015. It may be noticed that
consumer applying for electricity connection having no distribution facilities near to
their premises may be charged higher amount, considering the expenditure incurred
in laying the dedicated distribution facility by utility. However, their neighbouring
consumer bear the nominal charges of electricity connection due to previous
installation of distribution facility nearby. This methodology of recovering charges
from APL consumers may lead to unjustified recovery of charges and biasness
among consumers. This has also led to negative impact on consumers, as rather
than applying for new connection, consumers opt for unscrupulous means for
obtaining electricity including, pilferages and theft. Such activities lead to increase in
AT&C losses and adversely impact the financial and operational performance of
utility.
7.11 Therefore, considering the above condition, the Petitioner proposes to introduce a
uniform charge for electricity connection, which shall be levied equally to all
consumers irrespective of their locality in view of providing electricity connection to
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all at fair and justified price. It is submitted that the Petitioner shall not recover the
infrastructure development cost from the consumer as it can be covered under
various central and state govt. schemes like IPDS, R-APDRP, ADP etc. Although a
uniform charge across all the consumers, depending on the load, can be levied, as
detailed in the below table.
1. SERVICE LINE CHARGES
7.12 In both electrified and un-electrified areas, the service line charges shall be levied for
all consumer categories, as proposed in the table below. Also comparison of service
line charges as applicable in other states are provided in the table below-
Table 48: Service Line Charges
Load (kWh) Charges Proposed
for JBVNL (Rs) Delhi Madhya Pradesh
Upto 2 kW only Nil 1,250
LT- (Upto 3 kW (single phase): Rs. 200 per kW or part thereof.
Upto 10 kW only 2,000 2,000
LT- (3-10): Rs. 600 + Rs. 600 per addl. kW or part thereof by which the load exceeds 3 kW
11-20 3,000 3,000
LT- (10-25): Rs. 7,200 + Rs. 2,250 per addl. kW or part thereof by which the load exceeds 10 kW
21-50 4,500 4,500
LT- (25-75): Rs. 40,950 + Rs. 3,750 per addl. kW or part thereof by which the load exceeds 25 kW
51-100 8,000 8,000
1. Cost of service line includes the cost of GI pipe, bricks and sand.
2. Option of O/H or U/G Service line shall lie with the licensee.
3. For load above 100 KW, the cost of providing connection on 11 KV shall be shared between Consumer and the Petitioner on 50:50 basis.
4. Where service connections are provided through ‘Loops’ only Rs. 500 shall be charged towards Service Line Charges for each new connection. However, where new service line is decided to be provided by licensee, charges for Service Line, as provided above, shall be applicable.
5. Road cutting permission shall be obtained by utilities on behalf of consumers. However, the cost thereto shall be charged to consumers and shall be shown
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separately in demand notice.
2. DEVELOPMENT CHARGES FOR UNELECTRIFIED AREAS
7.13 For other un-electrified areas, the Development charges as given in Table below shall
be charged in addition to Service Line charges indicated in Table above.
Table 49: Development Charges
Sanctioned Load (kWh) Charges Proposed for
JBVNL (Rs) Delhi
Up to 2kW Nil 4,000
2-6kW 2,500 4,000
6-10 kW 4,000 4,000
11-20 6,000 6,000
21-50 9,000 9,000
51-100 18,000 18,000
c) Charges related to meter
7.14 In this section, charges related to meter testing, removing/ fixing / Re-fixing of meter,
changing of meter /meter equipment, resealing of meter, replacement of meter and
fuse call replacement are discussed. A detailed proposed charges for JBVNL, its
current charges and comparison of charges with other states are provided in the table
below.
Table 50: Charges related to meters
S No.
Particulars
Scale of Charges
JBVNL (Present)
JBVNL (Propose
d)
Maharashtra
Bihar Chhattisg
arh
1 Meter test when accuracy disputed by consumer
Single phase Rs. 40 Rs. 100 Rs. 100 Rs. 100 Rs. 130
Three phase Rs. 100 Rs. 200 Rs. 350 Rs. 200 Rs. 200
Tri vector/ special type meter
Rs. 650 Rs. 1,800 Rs. 1,000 Rs. 1,800 Rs. 1,200
33/11 kV metering equipment
Rs 5,000 Rs 5,000
132/220 kV metering equipment
Rs 8,000 Rs 8,000
2 Removing/ Fixing / Re-fixing of meter
Single phase Rs. 50 Rs.200.00 Rs.200.00 Rs. 70
Three phase Rs. 100 Rs.400.00 Rs.400.00
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S No.
Particulars
Scale of Charges
JBVNL (Present)
JBVNL (Propose
d)
Maharashtra
Bihar Chhattisg
arh
Tri vector/ special type meter
Rs. 300 Rs.600.00 Rs.600.00
Three Phase meter with CT
Rs 500.00 Rs.500.00
HT metering equipment
Rs.
1,200.00
Rs. 1,200.00
3 Changing of meter /meter equipment/fixing of sub meter on the request of the consumer/fixing of sub meter
Single phase Rs. 50 Rs. 75 Rs. 25
Three phase Rs. 100 Rs. 180
Trivector/ special type meter
Rs. 300 Rs. 530
4 Resealing of meter when seals are found broken
Single phase Rs. 25 Rs. 50
Three phase Rs. 50 Rs. 80
Trivector/ special type meter
Rs. 100 Rs. 530
5
Replacement of meter card, if lost or damaged by consumer
Rs. 10 Rs. 20 Rs. 10
6 Fuse call – Replacement
Board fuse due to fault of consumer
Rs. 15 Rs. 30 Rs. 25
Consumer fuse Rs. 15 Rs. 30
d) Other charges
7.15 In this section, two major miscellaneous charges i.e. supervision charges and interest
on security deposits are discussed. In the clause 3.2.4 of (Electricity Supply Code)
Regulations 2015, it is mentioned that “supervision charge should not exceed 15
percent of the labour cost that would have been incurred by licensee in carrying out
work”. However, in other states this cost is 15 percent of the labour and material cost.
Similarly, in clause no 8.2.16 of (Electricity Supply Code) Regulations 2015 it is
mentioned that “The Distribution Licensee shall pay interest to the consumer at the
State Bank of India base rate prevailing on the 1st of April for the year.” However, In
other states interest to consumers are payable At the bank rate notified by the
“Reserve Bank of India” from time to time. In line with the above, JBVNL would like
to propose the supervision charges and interest on security deposits.
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Table 51: supervision charges and interest on security deposits
S No.
Particulars
Scale of Charges
JBVNL (Present)
JBVNL (Proposed
) Bihar
Chhattisgarh
Maharashtra
1 Supervision Charges
15% on cost of labour
15% on cost of material and labour
Licensee can charge percentage of
the normative estimate arrived at on KVA or KW basis as specified in cost data
Load 30 KW (33 KVA) upto 3600 KW (4000 KVA): - 15%
Above 3600 KW upto 9000 KW (10,000 KVA): - 8%
Above 9000 KW (10,000 KVA): - 5%
15% on cost of
material and labour
not exceeding 15 per cent of the cost of labour
2
Interest on Security deposit
At the State
Bank of India base
rate prevailing on the 1st of April for the year
At the bank rate
notified by the
Reserve Bank of
India from time to time
At the bank rate notified
by the Reserve
Bank of India from time to
time
At the bank rate
notified by the
Reserve Bank of
India from time to time
At the bank rate notified by
the Reserve Bank of
India from time to
time
e) New charges
7.16 In addition to the above charges of service connection, meter charges, supervision
charges and interest on security deposits, JBVNL would also like to propose charges
for meter rent, transformer rent and cost related to replacement of burnt meter.
Table 52: New Charges
S No. Particulars
Scale of Charges
JBVNL (Proposed)
Bihar Chhattisga
rh Maharashtra
1 Meter Rent/ Month
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S No. Particulars
Scale of Charges
JBVNL (Proposed)
Bihar Chhattisga
rh Maharashtra
DS Category except DS I-
Single Phase/ Three phase Rs. 20/ 50
Rs. 20/ 50
Rs. 10/ Rs. 25 upto 40 Amp and Rs. 50 for
40-100 Amp
Meter cost
LT meter with CT Rs. 500 Rs. 500
11 kV at low Voltage Rs. 500 Rs. 500 Rs. 720
11 kV at 6.6/11 kV Rs. 700 Rs. 700
33 kV HT side Rs. 3,000 Rs. 3,000 Rs. 1,140
132 kV Rs.15,000 Rs.15,00
0 Rs. 8,900
RTS or 220 Kv Rs. 15,000 Rs.
15,000 Rs 19,600
2 Replacement of Burnt Meter Cost of meter
Cost of meter
Cost of meter
3 Transformer Rent
Upto 200 kVA Rs. 1,000
Above 200 kVA Rs. 1,500
4. Impact of revision of miscellaneous charges on NTI (Non-Tariff
Income)
7.17 In the Previous Tariff Orders for FY 2010-11, FY 2011-12 and FY 2012-13, the
Hon’ble Commission had directed Petitioner to consider the impact of the proposed
miscellaneous charges including the minimum guaranteed consumption charges and
show separate calculations for NTI at existing miscellaneous charges and NTI at
proposed miscellaneous charges with details through a separate petition or while
filing the next ARR.
7.18 In the previous Tariff Orders, the Hon’ble Commission has retained all the
miscellaneous charges as approved in the Tariff Order for FY 06-07 and the same
rates are applicable till date. In view of the above directives given by Hon’ble
Commission, JBVNL would like to submit that exact increase in NTI can only be
reflected in the respective annual account for that particular year. However it is
roughly expected that there will be an addition of approx. Rs. 2 Cr. in NTI on account
of revision of miscellaneous charges. A detailed break-up of NTI of FY 14-15 is
provided in the annual accounts of FY 2014-15 for the reference of Hon’ble
Commission. The Petitioner humbly requests the Hon’ble Commission to consider
the NTI as submitted by the Petitioner, while calculating revenue gap and any change
in NTI due to revision of miscellaneous charges shall be adjusted in the True-up
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Petitions subsequently.
7.19 As directed by Hon’ble commission, petitioner has submitted the required justification
for increase in miscellaneous charges. Hence, it is respectfully submitted that the
present Petition raises issues of substantial importance and facts which requires a
consideration before this Hon’ble Commission, to present the analysis and rationale
for the relief sought by the Petitioner.
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8. Terms and Condition of Supply
8.1 The Petitioner is hereby submitting following terms and conditions of supply besides
terms and conditions provided in the JSERC (Electricity Supply Code), Regulations,
2015, for kind perusal of the Hon’ble Commission.
Clause I: Penalty for exceeding Billing/ Contract Demand
8.2 In case the consumer’s actual recorded demand exceeds 110% of the contract
demand, then normal demand charge will be applicable up to 110% of contract
demand. However, once the consumer surpasses the 110% threshold, then penal
tariff shall be applicable @ 1.5% of existing charges for the demand over and above
the contract demand (i.e 100%) and NOT on the demand exceeding 110%.
8.3 Further, in case any consumer exceeds the Contract Demand on more than three
occasions in a calendar year, the highest demand so recorded would be treated as
the revised contract demand.
8.4 In case actual demand is higher than the contract demand for three continuous
months, the maximum demand of the last three months shall be treated as the new
contract demand for the purpose of billing of future months and the consumer will
have to get into a new agreement for the revised contract demand with the licensee
within the period defined by the Licensee and communicated to the consumer failing
which the consumer will be charged @ 2 times of the demand charges as long as the
consumer does not enter the agreement.
8.5 Once the actual demand is recorded to be higher than contract demand for two
continuous months, the licensee would serve notice to the consumer after the end of
the second month for enhancement of the contract demand. The consumer would be
liable to respond within 15 days of receipt of such notice and submit application for
enhancement of contract demand to the licensee. The licensee would, within 15 days
of receipt of response from the consumer, finalise the new agreement after making
necessary changes at consumer’s installations.
8.6 In case the consumer fails to respond within 15 days, the licensee would have the
right to initiate enhancement of load as per the last recorded contract demand. While,
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in case the consumer provides an undertaking that the actual demand shall not
exceed the contract demand again for a period of at least six months from the last
billing, the licensee shall continue to bill the consumer as per the existing contract
demand and billing demand.
8.7 Provided that if the consumer fails to adhere to the undertaking and the actual
demand exceeds the contract demand within the subsequent six months of the
undertaking, the consumer shall have to pay a penal charge of 2 times the normal
tariff for a period of three consecutive months and the licensee shall, after serving 7
days notice to the consumer, enhance the contract demand of the consumer as per
the last recorded actual demand.
Clause II: Power factor Penalty/Rebate
Power Factor Penalty:
8.8 Power Factor Penalty will be applicable in case of maximum demand meters. In case
average power factor in a month for a consumer (i.e. up to 33 KV consumers) falls
below 0.90, a penalty @ 1% for every 0.01 fall in power factor from 0.85 to 0.60; plus
3% for every 0.01 fall below 0.60 to 0.30 (up to and including 0.30) shall be levied on
energy charges.
8.9 Further for 132 KV consumers and above, in case average power factor in a month
for a consumer falls below 0.95, a penalty @ 0.5% for every 0.01 fall in power factor
from 0.95 to 0.85; plus a penalty @ 1% for every 0.01 fall in power factor from 0.85
to 0.60; plus 3% for every 0.01 fall below 0.60 to 0.30 (up to and including 0.30) shall
be levied on energy charges. Consumer with power factor of less than 0.30 must
install shunt capacitors immediately, failing which their line will be disconnected with
15 days clear notice.
Power Factor Rebate:
8.10 Power Factor rebate will be applicable in case of maximum demand meters. In case
average power factor as maintained by the consumer (up to 33 KV consumers) is
more than 90%, a rebate of 1% and if power factor is more than 95%, a rebate of 2%
on energy charges shall be applicable.
8.11 Further, for 132 KV consumers and above, in case average power factor as
maintained by the consumer is more than 95%, a rebate of 2% on energy charges
shall be applicable.
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Clause III: Electricity Duty
8.12 The charges in this tariff schedule do not include charges on account of Electricity
Duty/ Surcharge to the consumers under the Jharkhand Electricity Duty Act, 1948
and the rules framed there under and as amended from time to time and any other
Statutory levy which may take effect from time to time after making corrections for the
loss in the distribution system.
Clause IV: Delayed Payment Surcharge
8.13 In case the electricity bills are not paid within the due date mentioned on the bill,
delayed payment charges of 2 percent per month or part thereof on the total electricity
bill (including Taxes and Duties) shall be levied on the bill amount. The due date for
making payment of energy bills or other charges shall be fifteen days from the date
of issuance of bill for LT Domestic, Commercial and Agricultural and twenty one days
from issuance of bill for all other categories. In case, the licensee defaults in
generating and delivering bills on timely basis, DPS will not be charged for the period
of default by licensee.
Clause V: Voltage Rebate
8.14 Voltage rebate will be applicable on energy charges as given below:
Table 53: Voltage Rebate
Consumer Category Voltage Rebate
HTS - 33 KV 3.00%
HTS - 132 KV 5.00%
HTS - 220 KV 5.50%
HTS - 400 KV 6.00%
Note: The above rebate will be available only on monthly basis and consumer with arrears
shall not be eligible for the above rebates. However, the applicable rebates shall be allowed
to consumers with outstanding dues, wherein such dues have been stayed by the
appropriate authority/Courts.
Clause VI: Load Factor Rebate
8.15 Load Factor rebate will be applicable on energy charges as given below:
Table 54: Load Factor Rebate
Consumer Category Load Factor Rebate 40 - 60 % Nil 60 - 70% 7.50% 70 - 100% 10%
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Note:
1. The consumers having load factor less than 30%, shall not be allowed to draw electricity
during peak periods. In the event such consumers are found using energy in peak hours
their line will be disconnected immediately.
2. The Load Factor rebate will be available only on monthly basis and consumer with arrears
shall not be eligible for the above rebates. However, the applicable rebates shall be allowed
to consumers with outstanding dues, wherein such dues have been stayed by the
appropriate authority/Courts.
Clause VII: Installation of Shunt capacitors
8.16 All consumers having aggregate inductive load greater than 3 HP (2.2 kW) and above
(except domestic and street lights), shall install capacitors of required KVAR rating
provided in the following table:
Table 55: Installation of Shunt capacitors
Rating of individual Inductive Load in HP
KVAR rating of LT capacitors
3 to 5 1 5 to 7.5 2
5.6 to 10 3 10 to 15 4 15 to 20 6 20 to 30 7 30 to 40 10 40 to 50 10 – 20 50 to 100 20-30
8.17 For existing consumer, the Petitioner should first serve one month’s notice to all such
consumers who do not have or have defective shunt capacitors. In case the
consumers does not get the capacitor installed/replaced within the notice period, the
consumer shall be levied a surcharge at 5% on the total billed amount charge
(metered or flat), till they have installed the required capacitors.
8.18 No new connection shall be released for any consumer having aggregate inductive
load greater than 3 HP (2.2 kW) unless the capacitors of suitable rating are installed.
Clause VIII: TOD Tariff
TOD tariff proposed shall be applicable as follows-
Off Peak Hours: 10:00 PM to 06:00 AM: 85% of normal rate of energy charge.
Normal Hours: 10:00 AM to 6:00 PM
Peak Hours: 06:00 AM to 10:00 AM & 06:00 PM to 10:00 PM: 120% of normal rate
of energy charge.
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Other Terms and Conditions
Point of Supply
8.19 The Power supply shall normally be provided at a single point for the entire premises.
In certain categories like coal mines power may be supplied at more than one point
on request of consumer subject to technical feasibility. But in such cases metering
and billing shall be done separately for each point.
8.20 Further, in case of Rolling Mills and Induction Furnace, and for NDS II consumers
with non-separate advertisement/hoarding/conspicuous consumption as per Section
8.3.2 the point of supply shall be separate
Dishonored Cheques
8.21 In the event of dishonored cheque for payment against a particular bill, the Licensee
shall charge a minimum of Rs 300 or 0.5% of the billed amount, whichever is higher.
The DPS shall be levied extra as per the applicable terms and conditions of DPS for
the respective category.
Sale of energy
8.22 No consumer shall be allowed to sell the electricity purchased from the Licensee to
any other person/ entity.
Release of new connections
8.23 No new connections shall be provided without appropriate meter. The tariff for un-
metered connections shall be applicable only to the existing un-metered connections,
until they are metered.
Conversion factors
8.24 The following shall be the conversion factors, as and where applicable: (PF=0.85):
1 Kilowatt (KW) = 1.176 Kilovolt ampere (kVA)
1 Kilowatt (KW) = 1 / 0.746 Horse Power (HP)
1 Horse Power (1 HP) = 0.878 Kilovolt ampere (KVA)
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Disputed Bills
8.25 In case of disputed bill, the consumer would be liable to pay their dues based on last
6 month’s consumption pattern which will be subsequently adjusted if found
erroneous against future bills.
Stopped/ defective meters
8.26 In case of existing consumers with previous consumption pattern, the provisional
average bill shall be issued on the basis of average of previous twelve months
consumption. In case of meter being out of order from the period before which no
pattern of consumption is available, the provisional average bill shall be issued on the
basis of sanctioned/ contract load on following load factor applicable to respective
categories, as shown below:
Table 56: Consumer wise Load Factor
Consumer Category Load Factor
Domestic & Religious Institution .20
Non-Domestic .30
LTIS/ PHED LT .30
DS-HT .20
HTS
11 KV .30
33 KV .40
132/200 KV/400 kV .50
HTSS .50
RTS .30
The Consumer should furnish usage details of their continuous load/shift wise load/otherwise.
Temporary Supply
8.27 Applicability
This tariff shall apply for connections being temporary in nature for period of less than one
year. The applicability shall be as given in the respective category tariff rate schedule.
Temporary supply cannot be claimed by a prospective consumer as a matter of right but will
normally be arranged by JBVNL when a requisition is made giving due notice subject to
technical feasibility and in accordance with electricity supply code issued by the
Commission.
Temporary tariff is proposed to be equivalent to 1.5 times of the applicable fixed and energy
charges for temporary connections falling in each prescribed tariff category with all other
terms and conditions of tariff remaining the same.
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Temporary connections shall be given prepaid meters with prepaid balance equivalent to
45 days of sale of power which shall be based on the assessment formula (LDHF)
prescribed by the Commission.
Temporary connections shall initially be provided for a period of up to 45 days which can be
extended on month to month basis up to six months.
Seasonal Supply (LT and HT)
8.28 Applicability
Seasonal supply shall be given to any consumer on written request to the Board subject to
the following conditions.
Table 57: Tariff Structure of Seasonal Supply
Sl. Period of Supply Tariff Rate - LT Tariff Rate - HT
1 Upto 3 consecutive months in
a year
Appropriate tariff plus
30 percent
Appropriate tariff plus
30 percent
2
More than 3 consecutive
months and upto 6 consecutive
months in a year
Appropriate tariff plus
20 percent
Appropriate tariff plus
20 percent
3
More than 6 consecutive
months and upto 9 consecutive
months in a year
Appropriate tariff plus
15 percent
Appropriate tariff plus
15 percent
The meter rent and other charges as provided in the appropriate tariff are applicable
to seasonal loads and would be charged extra for the entire period of supply.
The supply would be disconnected after the end of the period unless the consumer
wants the supply to be continued. Any reconnection charges have to be borne by the
consumer.
Consumer proposing to avail seasonal supply shall sign an agreement with the Board
to avail power supply for the maximum period provided in Supply Code.
The consumers must avail supply in terms of whole calendar month continuously.
The consumer is required to apply for seasonal supply and pay initial cost and security
deposit as an applicant for normal electricity supply as per provisions of supply code.
The consumer shall ensure payment of monthly energy bills within 7 days of its receipt.
The supply will be disconnected if payment is not made on due date.
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Rebate for Disabled and Primitive Tribal Consumers
8.29 Continuing its efforts towards the social welfare and inclusive growth, JBVNL is
proposing to provide relief for the disabled and primitive tribal consumers in the State.
It is proposed that for physically disabled consumers and primitive tribal group
consumers under category DS 1a, 1b and DS II (up to 2 kW) up to 100 units will be
free in a given month. However, in case the consumption increases beyond 100 units
the corresponding tariff category and slabs shall be applicable. Hence it is prayed
that the proposed rebate for the disabled and primitive tribal consumers may be
approved by the Hon’ble Commission.
Distinct Categorization of Rolling Mills and other associated operation with
Induction Furnace under HTS:
8.30 It is proposed that Hon’ble Commission may please consider Rolling mills and other
associated operations exclusively under HTS category. In case there are any
combined operation where rolling mills/other associated operations occur with
induction furnace under the same premise, then separate metering arrangements as
well as boundary separation of the operations must be done to segregate the units
consumed exclusively for induction furnace and rolling mills/other associated
operations.
Metering facility:
8.31 It is proposed that all HTS & HTSS consumers should have demand recording facility
@ 15 minutes time integration. This will enable utility to manage its load profile during
power restrictions. This will also enable Petitioner to match the profile/ scheduling
with the SLDC/ ERLDC and assist in energy accounting. It may be noted that
Regional Energy Accounting (REA) and other power drawal & scheduling are done
on 15 minutes time block.
Restriction of connected load for Demand Based Tariff:
8.32 Restrictions of connected load criteria for demand based tariff for HTS category is
removed as any such relaxation will prompt other consumers to opt for such
mechanism. Further the benefit to one particular class of category should not be
burden to other class of consumer. It is suggested that connected load criteria as
prevailing in tariff order/ supply code/ conditions of supply for release of load under
LT or HT category should not be relaxed.
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NOC for Switchover to other licensee:
8.33 It is proposed by the petitioner that any consumers switching over to the other
licensee shall have to compulsorily clear off all the dues and obtain ‘No Objection
Certificate’ (NOC) mandatorily, failing which energy bills shall be generated based on
the contract demand or maximum demand during last six months, whichever is higher
despite power supply being disrupted. Penalty for exceeding contract demand shall
also be applicable.
Removal of Clause 13 from HT Agreement:
8.34 JBVNL earlier submitted a review petition to the Hon’ble Commission regarding
removal of clause 13 from HT Agreement. However, no decision has been arrived at
so far. Therefore, the Petitioner would like to resubmit its request for removal of
Clause 13 from the HT agreement.
“Clause 13” of the HT Agreement is reproduced hereunder
“If at any time the consumer is prevented from receiving or using the electric energy to be supplied under this agreement either in whole or in part due to strike, riots, fire, floods, explosion, act of God or any other case reasonable beyond control or if the Board is prevented from supplying or unable to supply such electric energy owing to any or all of the causes mentioned above than demand charge and guaranteed energy charge set out in the schedule shall be reduced in proportion to the ability of the consumers to take or the Board to supply such power and the decision of the Chief Engineer, Jharkhand State Electricity Board, in this respect shall be final.”
8.35 The Petitioner requests the Commission to notice that the minimum guaranteed
charges are presently not applicable to the consumers and as such the requirement
to adjust or proportionately reduce such charges based on the ability of the consumer
to take or the Board to supply energy as highlighted in the excerpt above doesn’t
reasonably fit into the agreement. As such, the petitioner requests that the said clause
be removed.
Supply to Consumers having Captive Power Generating facility
8.36 Due to rising number of captive users, JBVNL proposes to put emphasis on Captive
Consumers category. JSERC captive power Regulation (Utilization of Surplus
Capacity of Captive Power Plants based on conventional fuel, Regulation, 2010) has
been notified for captive users. However, the tariff applicable for the CPP category is
not reflected in the Tariff Order.
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8.37 Definitions
“ Captive generating plant” or “Captive Power plant” (CPP) means a power plant set up by
any person to generate electricity primarily for his own use and includes a power plant set
up by any co-operative society or association of persons for generating electricity primarily
for use of members of such cooperative society or association;
A power plant shall be identified as a Captive Power Plant only if it satisfies the conditions
contained in clause 3 (1) (a) and 3 (1) (b) of the Electricity Rules, 2005 notified by the
Ministry of Power, Government of India, on 8th June 2005, reproduced as under:
3(1) No power plant shall qualify as a ‘captive generating plant’ under section 9
read with clause (8) of section 2 of the Act unless-
a) in case of a power plant-
(i). not less than twenty six percent of the ownership is held by the captive user(s),
and
(ii). not less than fifty one percent of the aggregate electricity generated in such
plant, determined on an annual basis, is consumed for the captive use
Provided that in case of power plant set up by registered cooperative society, the
conditions mentioned under paragraphs at (i) and (ii) above shall be satisfied
collectively by the members of the cooperative society:
Provided further that in case of association of persons, the captive user(s) shall
hold not less than twenty six percent of the ownership of the plant in aggregate
and such captive user(s) shall consume not less than fifty one percent of the
electricity generated, determined on an annual basis, in proportion to their shares
in ownership of the power plant within a variation not exceeding ten percent;
b) in case of a generating station owned by a company formed as special
purpose vehicle for such generating station, a unit or units of such
generating station identified for captive use and not the entire generating
station identified for captive use and not the entire generating station
satisfy(s) the conditions contained in paragraphs (i) and (ii) of sub-clause
(a) above including-
Explanation: -
1) The electricity required to be consumed by captive users shall be
determined with reference to such generating unit or units in aggregate
identified for captive use and not with reference to generating station as a
whole; and
2) The equity shares to be held by the captive user (s) in the generating
station shall not be less than twenty six percent of the proportionate of the
equity of the company related to the generating unit or units identified as
the captive generating plant.
3) It shall be the obligation of the captive users to ensure that the
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consumption by the Captive Users at the percentages mentioned in sub-
clauses (a) and (b) of sub-rule (1) above is maintained and in case the
minimum percentage of captive use is not complied with in any year, the
entire electricity generated shall be treated as if it is a supply of electricity
by a generating company.
Explanation: (1) For the purpose of this rule
a. “Annual Basis” shall be determined based on a financial year;
b. “Captive User” shall mean the end user of the electricity generated in a
Captive Generating Plant and the term “Captive Use” shall be construed
accordingly;
c. “Ownership” in relation to a generating station or power plant set up by a
company or any other body corporate shall mean the equity share capital
with voting rights. In other cases ownership shall mean proprietary interest
and control over the generating station or power plant;
d. “Special Purpose Vehicle” shall mean a legal entity owning, operating and
maintaining a generating station and with no other business or activity to
be engaged in by the legal entity.
8.38 Proposed by the petitioner
A separate consumer category of CPP shall be reflected in the Tariff Order as detailed
below:-
i) CPP Capacity same as the load required
In this regard, provisions related to Stand-by support to CPP as per the JSERC captive
power regulation (Utilization of Surplus Capacity of Captive Power Plants based on
conventional fuel, Regulation, 2010) shall be applicable.
ii) CPP Capacity less than the load required
Load exceeding the CPP capacity and upto the contract demand shall be
charged at corresponding HTS tariff as approved in the tariff order.
Once the normal contract demand is exceeded, the additional demand shall
be treated as stand-by demand and all terms and conditions of JSERC
(Utilization of Surplus Capacity of Captive Power Plants based on conventional
fuel) Regulation, 2010 shall be applicable.
Provision related to Stand By support to CPP shall be applicable for the
Captive Capacity in case of emergency power requirement.
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8.39 Tariff Schedule
Table 58: Tariff Schedule for CPP consumers
Sl. No. Period of Supply Demand Charges
(Rs/kVA)
Energy Charges
(Rs/kVA)
1
CPP with Surplus
Power and
Supplying to
Petitioner
- Standby Support up
to 1008 hours
Pro-rated HT Industrial
consumer Contract
Demand tariff at
corresponding voltage
1.5 times of the HT
Industrial consumer
Energy charges at
corresponding voltage
- Standby Support
beyond 1008 hours
Tariff approved by the
Commission for
temporary HT
consumers at
corresponding voltage
and demand (or as per
the order of the
Commission as specified
from time to time) in the
Licensee’s area of
supply on power
consumed beyond 1008
hours
Tariff approved by the
Commission for
temporary HT
consumers at
corresponding voltage
and demand (or as per
the order of the
Commission as
specified from time to
time) in the Licensee’s
area of supply on power
consumed beyond 1008
hours
2
CPP with Partial
availability and
Drawing power from
Petitioner
- Standby Support up
to 1008 hours
Pro-rated HT Industrial
consumer Contract
Demand tariff at
corresponding voltage
and demand (or as per
the order of the
Commission as specified
from time to time) for
Stand-by Demand
contracted. The pro-rata
shall be done on the
basis of the usage.
1.5 times of the HT
Industrial consumer
Energy charges at
corresponding voltage
and demand (or as per
the order of the
Commission as
specified from time to
time) for energy
equivalent to Stand-by
Demand.
- Standby Support
beyond 1008 hours
Tariff approved by the
Commission for
temporary HT
consumers at
corresponding voltage
and demand (or as per
the order of the
Commission as specified
from time to time) in the
Licensee’s area of
Tariff approved by the
Commission for
temporary HT
consumers at
corresponding voltage
and demand (or as per
the order of the
Commission as
specified from time to
time) in the Licensee’s
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supply on power
consumed beyond 1008
hours
area of supply on power
consumed beyond 1008
hours
8.40 Applicability
This shall be applied to all the Captive Power Plants who are having installed
capacity of 1 MW and above and connected to the state grid and are either supplying
power to the petitioner or drawing power from the petitioner to meet their load
requirements.
This shall also be applied to the CPPs who have signed agreements earlier and are
having partial generation facility to meet its power requirement and not covered
elsewhere in tariff schedule. All these consumers will have to enter into agreement
for the contract demand required from the petitioner.
The provisions of the ‘Jharkhand State Electricity Regulatory Commission
(Utilization of Surplus Capacity of Captive Power Plants based on conventional fuel)
Regulation, 2010’ shall be applicable for the CPP having surplus capacity who are
supplying power to the petitioner and drawing power from the petitioner as standby/
emergency requirement.
8.41 Wherever an agreement for Stand-by support exists between the Captive User and
the Licensee of his area of supply, the Captive User shall be required to pay to the
Licensee a fixed charge of Rs. 35 per kVA per month, applied on the capacity
contracted under Stand-by support with the Licensee.
8.42 The demand charges shall be applied on the maximum demand at any 15 minutes
time block covered under Stand-by period subject to minimum of 90% of the contract
demand. The Stand-by period for this purpose shall be reckoned maximum up to
1008 hours (42 days). The energy charges shall be applied on the total energy
consumed across all time-blocks covered under the Stand-by period.
8.43 It is important to mention that in Chhattisgarh, recently CSPDCL had approached
State Commission for separate CPP Tariff, which has been approved by CSERC and
separate tariff for CPP has been included, as reproduced below:
The standby charges for consumers availing open access (using transmission
and/or distribution system of Licensee) and who draws power from the grid up to the
contracted capacity of open access during the outage of generating plant/CPP shall
be 1.5 times of the per kWh weighted average tariff of HT and EHT consumers,
which is Rs 8.97 per kWh (1.5 times of the average billing rate of Rs.5.98 per kWh).
For drawl of power in excess of the contracted capacity of open access, the tariff for
availing stand by support from the grid shall be two times of the per unit weighted
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average tariff of HT and EHT consumers which is Rs 11.96 per kWh (2 times of the
average billing rate of Rs. 5.98 per kWh).
8.44 The Petitioner would like to submit to the Hon’ble Commission that the load
requirement of the industrial units to which these CPPs are meant to supply power
are higher than the capacity of the CPP and therefore continuous power is being
drawn from JBVNL grid by these CPPs. The Hon’ble JSERC is requested to
determine the parallel operation charge for all CPP’s connected to the
transmission/distribution system.
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9. Consideration from Previous Tariff Order
9.1 The Hon’ble Commission has pronounced the last Tariff Order on “Review of ARR
for FY 2013-14 (from 6th January 2014 to 31st March 2014), FY 2014-15 and ARR
and Distribution Tariff for FY 2015-16 for JBVNL dated 14th December 2015. In which
the Hon’ble commission has allowed an average increase of only 8% in tariffs
applicable from 1st January 2016.
9.2 Being aggrieved by certain observations and findings in the Tariff Order dated 14th
December 2015, the JBVNL has filed a review petition before Hon’ble Commission
highlighting the limited issues mentioned below.
A. To consider the financing cost of DPS and revise the non-tariff income in
computation of ARR
It was earlier submitted that the Delayed Payment Surcharge is levied on the outstanding receivables of the consumers and considered in the books of accounts on accrual basis. The Hon’ble Commission has considered delayed payment surcharge (DPS) as part of NTI as provided in the books of accounts. However, it doesn’t reflect the actual DPS being realized by the petitioner, thus the amount of DPS being booked in the annual accounts keeps on inflating.
The Petitioner has also submitted that if the accrued DPS is considered to form part of NTI, it is important that the financing cost for corresponding receivables must also be considered. It is submitted that consideration of financing cost of DPS is in line with the judgment of the Hon’ble Appellate Tribunal for Electricity (APTEL) dated 12.07.2011 in case No.142 & 147 of 2009. The Hon’ble APTEL has held in case of NDPL vs DERC, dated 20.07.2010.
B. Complete RGF should be utilized to meet the slashes/disallowances worked out
by the Hon’ble commission while fixing the tariff.
The Petitioner has submitted that resource gap funding being provided by Government of Jharkhand is towards disallowances and slashes made by the Hon’ble Commission during tariff determination process for various parameters such as higher T&D Loss, normative interest computation, normative generation cost etc. and should not be considered as measure to reduce revenue gap. A communication from the Energy department, Government of Jharkhand was also submitted vide letter dated 14th July 2014 stating that
“Amount released towards resource gap may be utilized to meet the
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slashes/disallowances worked out by the Hon’ble commission while fixing the tariff”.
In view of the above, Hon’ble commission has partially adjusted towards the disallowance of the Power purchase cost and remaining resource gap funding available to the Petitioner after accounting for the aforesaid disallowance has considered for meeting the approved revenue gap. In line with the above the Petitioner has prayed to the Hon’ble Commission that complete RGF should be utilized to meet the slashes/disallowances worked out by the Hon’ble commission while fixing the tariff.
C. To consider the carrying cost for the gap of 9 months of 2015-16 i.e. from April
2015 to December 2015 in computing the tariff.
As per Tariff order for the FY 2015-16, tariff will be applicable from 1st January, 2016. As can be noted from Table No. 91 of Tariff Order dated 14th November 2015 while computing the ARR for FY 2015-16, Hon’ble Commission has not considered the carrying cost for the gap of 9 months of 2015-16 i.e. from April 2015 to December 2015. In review petition, it was prayed to Hon’ble commission to consider the carrying cost of 9 months for FY 2015-16.
D. To consider the Revised Revenue Gap
Considering the revised submissions in review petition related to Non-Tariff Income
(NTI), adjusting the complete RGF towards disallowance and considering the carrying
cost, a revised submission of revenue gap of Rs. 3470.69 Cr. was made.
9.3 The petitioner would like to reiterate the above submissions to Hon’ble Commission
to streamline the future regulatory process.
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10.Prayers to Hon’ble Commission
10.1 The Petitioner JBVNL respectfully prays to the Hon’ble Commission:
1) To admit the MYT Petition of JBVNL for the Control Period (FY 16-17 to FY 20-21)
in accordance with Regulation 5 of the Jharkhand State Electricity Regulatory
Commission (Multi Year Tariff) Regulations, 2015.
2) To approve the MYT Petition of JBVNL for the Control Period (FY 16-17 to FY 20-
21) in accordance with Regulation 5 of the Jharkhand State Electricity Regulatory
Commission (Multi Year Tariff) Regulations, 2015.
3) To approve the principles and methodology proposed by JBVNL for projection of
ARR.
4) To allow the collection efficiency trajectory as proposed by JBVNL and its impact on
the ARR.
5) To approve the proposed tariff to meet the revenue gap and to minimise the gap
between ARR and ACS
6) To approve the deviation from the norms for certain parameters prescribed in
JSERC (MYT) Regulations 2015, provisions thereof, as sought in this Business Plan
during the period FY 16-17 to FY 20-21.
7) To allow adjustment of RGF against the disallowances first and remaining RGF to
be utilized to reduce the tariff for particular consumer categories.
8) To approve the DSM Cess proposed by the Petitioner for undertaking DSM
programs in the State
9) To approve revised schedule of charges in view of the non-revision of such charges
since FY06-07
10) To approve the terms and conditions of tariff as proposed by the Petitioner
11) To pass any other order as the Hon’ble Commission may deem fit and appropriate
under the circumstances of the case and in the interest of justice.
12) To condone any error/omission and to give opportunity to rectify the same.
13) To permit JBVNL to make further submissions, addition and alteration to this
Business Plan as may be necessary from time to time.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 99
11. Annexures
Annexure-1: Directives
List of Directives and Compliance Report
Sl. Directive Details Response from petitioner
1. Strengthening of Transmission & Distribution Network
The Commission directs the Petitioner to take appropriate steps in order to strengthen the Transmission & Distribution network. The Petitioner is directed to submit a detailed plan with expected benefits with the next tariff petition. In addition the Commission directs the Petitioner to implement safety measures in its network to avoid accidents which not only disrupt supply but also lead to loss of human life. The Commission also directs the Petitioner to update and implement its Safety Manual in line with the Provisions of Indian Electricity Rules to avoid such disruptions.
The Petitioner has prepared the plan for T&D network strengthening, which has been submitted subsequently as part of the MYT Business/ Capital investment plan. The Petitioner has taken several initiatives to avoid such accidents and the implementation of Safety Manual is presently underway.
2. Energy Audit & T&D Loss Reduction Plan
The Commission directs the Petitioner to conduct its division-wise Energy Audit & prepare circle-wise T&D Reduction Plan and submit the same to the Commission within six months of issue of this Tariff Order.
The petitioner has already prepared the plan to achieve 100% Feeder Metering under UDAY Scheme. Town-wise Energy Accounting has been initiated to ensure the Energy Audit at division level. JBVNL is undertaking massive steps to achieve the AT&C Loss trajectory (Loss Reduction Trajectory already provided within the Petition) under UDAY Scheme, the steps for reduction of T&D Losses in this direction are
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 100
Sl. Directive Details Response from petitioner
being undertaken which are listed as below – Metering, Android based Spot Billing, Mobile App, AMR, Installation of AB Cables, Pragya Kendra, Tying up with Bank and Post Offices, ATP Machines, Online payment through Portal, Feeder Segregation, Revenue Intelligence Cell Formation, Name and Shame Campaign etc.
3. SoP Implementation
The Commission directs the Petitioner to submit progress reports on the implementation of Standards of Performance as per the JSERC (Standard of Performance) Regulations, 2005.
The Petitioner understand its commitment towards SoP and several awareness campaigns on this issue have been undertaken in presence of Hon’ble Commission. The Petitioner is committed towards its duty to maintain the SoP.
4. Power Procurement Plan
The Commission views that the short-term and long-term Power Purchase planning needs to be ratified by the Commission before implementation by the Petitioner, hence it directs the Petitioner to submit to the Commission a detailed Power Procurement Plan before the start of every financial year so that the Commission can review the need for purchasing and selling power and approve accordingly.
The power procurement plan for FY 2016-17 and subsequent years is submitted with MYT Business Plan and MYT petition
5. Revenue from Free Power to Employees
The Commission directs Petitioner to provide details of free power along with revenue not billed for such free power to employees in all subsequent audited accounts. Also, the Commission points out that no consideration in revenue will be allowed to the Petitioner on account of free power supplied by the Petitioner to its employees.
Due care is being taken for identifying the free power given to its employees and it is being considered for preparation of annual accounts.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 101
Sl. Directive Details Response from petitioner
6. Interest on Consumer Security Deposit
The Commission directs the Petitioner to submit the action taken report on actual interest paid to consumers on security deposits along with details of rate of interest considered to the Commission with the next tariff Petition, failure to do so will invite penal action. The Commission also directs the Petitioner to prepare a list of consumers who have not been paid at the prevailing bank rate and clear the dues pending on the Petitioner with immediate effect.
The interest on consumer security deposits is being paid in line with the Hon’ble Commission’s regulations. The direction in this regard has been issued to the field officers. The Petitioner is preparing the list of consumers not paid and shall submit the details subsequently, after collecting details from the field offices.
7. Metering Plan The Commission directs the Petitioner to provide status update to the Commission regarding category-wise defective/ burnt/ non-performing meters and action plan on replacement of these with the next tariff petition. The Commission also directs to prepare a metering plan to provide meters to all the unmetered consumers and also ensure that no new connection is released without a meter.
The Petitioner has recently provided nearly 1,26,000 single phase meters for replacement of defective/ burnt/ non-operational meters and metering the un-metered consumers. Further, no connection is being released without a meter and significant number of meters are in the process of being procured.
8. Bill Payment Mechanism
The Commission directs the Petitioner to strengthen the bill payment mechanism within six months of this Order, the failure to do so will invite penal action. The Petitioner should find ways and means to simplify the payment procedure and provide alternatives to the consumers such as online payment, payments through ATP machines, payment at multiple Banks, Kiosks etc
The Petitioner has already undertaken several measures to ensure ease of bill payment by the consumer, such as online bill payment, installation of ATP for bill payment, payment at multiple banks, post office, Pragya Kendra, manual counters at each division etc. Also Petitioner has introduced the online tool based billing
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 102
Sl. Directive Details Response from petitioner
9. Reduction in Overtime Expenses
The Commission directs the Petitioner to take necessary steps to reduce the overtime expenses and submit action taken report with the next tariff petition, failing which the Commission will not allow any cost under overtime expenses.
The Petitioner has taken necessary steps to reduce the overtime expense. Petitioner has completed the below mentioned recruitment in Feb’16 to optimize the Overtime Expense – Junior Lineman – 180 Nos. Switchboard Operator – 170 Nos. Assistant Operator – 20 Nos. Fitter - 1 Apart from this, the petitioner has also completed the recruitment of Assistant and Junior Engineers.
10. Uploading of the Tariff Petition on Website
The Commission has observed that many objectors have raised objections on the error in downloading of the tariff petition from the website. The Commission notes this with serious concern and directs the Petitioner to ensure such errors are not repeated again in future.
The Petitioner condones the technical error, restricting the download of petition. Going forward, the Petitioner shall ensure that such technical glitches are minimized and all downloads including tariff petitions etc. function smoothly.
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 103
Annexure-2: Letter for RGF from State Government
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 104
Annexure-3: Transfer Scheme
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 105
Annexure-4: Transfer of amount (Rs. 6,136.37 Crs) overtaken by State
Government to JBVNL in form of Debt under UDAY Scheme
Jharkhand Bijli Vitran Nigam Ltd.
Annual Revenue Requirement and Tariff Petition for
MYT Control Period FY 16-17 to FY 20-21 for JBVNL Page | 106
Annexure-5: Annual Accounts
Annual Accounts (Board Approved) for FY13-14 – Attached herewith
Annual Accounts (Board Approved) for FY14-15 – To be submitted subsequently.