8.0

DETERMINATION OF TARIFF

8.1

The determination of tariff by the Commission has been done after examination of all details based on the records submitted by the Licensee, written and oral representations of the objectors and after duly consulting the Commission Advisory Committee. In addition to this the Commission also gave due consideration to the comments and observations made by various national and international authorities on the tariff orders earlier issued by the Commission as well as suggestions and complaints received from the actual electricity users of Orissa during the past years.

8.2

The tariff structure that this Commission inherited was a highly distorted one and like the past years the Commission this year has also tried to further rationalise the tariff structure so as to ensure that there is a progressive increase in the rate of tariff for those who are paying less than the average cost of supply. The Commission has been taking steps for rationalisation of tariff i.e. gradually adopting a uniform rate for all consumer categories using electricity on the same voltage of supply which is a good measure of the cost of supply. The Commission considers it reasonable to determine tariff and charges as in the following paragraphs.

8.3

The tariff structure as it exists for different voltage of supply are summarised.

8.3.1

LT supply upto 100 KW/110 KVA :

Kutir Jyoti consumers : Monthly Fixed Charge (Rs./ Month)

Other classes of consumers :

(a) Energy Charge (Paise/unit)

(b) Monthly Minimum Fixed Charge (MMFC) (Rs./KW/ Month)

8.3.2

LT supply with connected load 110 KVA and above :

1. Demand Charge (Rs./KVA)

2. Energy Charge (Paise/unit)

3. Customer Service Charge (Rs./Month)

8.3.3

HT Consumers :

1. Demand Charge (Rs./KVA, Rs./KW)

2. Energy Charge (Paise/unit)

3. Customer Service Charge (Rs./Month)

8.3.4

EHT Consumers :

1. Demand Charge (Rs./KVA)

2. Energy Charge (Paise/unit)

3. Customer Service Charge (Rs./Month)

8.3.5

DC Services : Same as LT Supply for consumers with CD less than 100 KW.

8.3.6

Consumers covered under two-part tariff are not required to pay the MMFC but are to pay Demand Charge and Customer Service Charge. Consumers covered under single-part tariff and liable to pay MMFC will not be required to pay either the Demand or the Customer Service Charge.

8.3.7

In addition to above, certain other charges like power factor penalty, incentive, prompt payment rebate, meter rent, delayed payment surcharge, over drawal penalty/incentive, tariff for special class of consumers, other miscellaneous charges, etc. are to be payable in cases and circumstances mentioned in the later part of this order.

The details of charges applicable to various categories of consumers classified under OERC Distribution (Condition of Supply) Code, 1998 are discussed hereafter.

8.4

Tariff for consumers availing power supply at LT

8.4.1

Monthly Minimum Fixed Charge (MMFC) for consumers with contract demand of less than 110 KVA

8.4.1.1

The MMFC as decided in the previous tariff order by the Commission is payable by the consumers with contract demand less than 110 KVA supplied power at LT. This is intended to meet a component of the fixed cost incurred in the system for meeting the consumer’s load and also to recover the expenses on maintenance of meter, meter reading, preparation of bills, delivery of bills, collection of revenue and maintenance of customer accounts.

8.4.1.2

The licensee had proposed an enhancement of the MMFC with which the Commission does not agree and decides that the existing rate of MMFC should continue as there has been no change in the Demand Charge payable by the licensee to the bulk supply licensee. Accordingly the rates applicable to all such customers shall be as given below at Table : 10.

Table : 10

8.4.1.3

Consumers with connected load of less than 110 KVA are provided with simple energy meters that only records energy consumption and not the maximum demand. The OERC (Condition of Supply) Regulation provides that contract demand for a connected load below 100 KW shall be the same as the connected load. Therefore, for the purpose of calculation of MMFC the connected load shall form a basis.

8.4.2

Energy Charge

8.4.2.1

Consumers with connected load less than 110 KVA

The Commission in moving towards a cost-based tariff structure and as a first step has started rationalising various charges linked to the voltage of supply which reflects the cost of supply to that particular category of consumers. In keeping with that objective the Commission has decided that the Energy Charge per unit for supply at LT will be uniform rate for all classes of consumers except domestic consumers consuming upto 200 units/month, ‘irrigation’ and ‘commercial’ consuming more than 100 units/month.

8.4.2.2

The relevant rates applicable to these classes of consumers have been discussed at appropriate paragraphs and details given in the Annex-D.

8.4.2.3

Domestic :Total number of consumers of NESCO as on 31.3.2000 is 2,92,345 out of which 2,48,271 or 84.9% constitute the domestic category including the Kutir Jyoti. The estimated sale of energy to this category during the FY 2000-01 is given below :-

8.4.2.3.1

Domestic consumers consume 27.51% of the total units sold by NESCO.

8.4.2.3.2

Domestic consumers are given power supply at Low/Medium voltage. The cost of supply to this category for the FY 2000-01 is 4.51 paise/unit.

8.4.2.3.3

The proposal submitted by the licensee with regard to the tariff rise for domestic category of consumers were examined. Some of the objectors complained that in the grab of Kutir Jyoti some consumers have got connected load much in excess of the single point supply for lighting envisaged under Kutir Jyoti programme. They also complained that extension of electricity being a State policy the State should subsidise such type of consumers. The Commission directs that wherever Kutir Jyoti consumers have got loads in excess of a single point supply, all such consumers should be metered and charged at normal domestic tariff.

8.4.2.3.4

The Commission is conscious of affordability consideration for non-Kutir Jyoti consumers with connected load of 1 KW and below who constitute nearly 70% of the total domestic strength. Dwelling units with five light points and two fan points with normal use may not exceed about 100 units per month on an average. Keeping this in view the Energy Charge for supply for domestic consumers availing low tension supply shall be as under :-

8.4.2.3.5

In case of other Domestic consumers, on the total monthly consumption :-

8.4.2.3.6

The Kutir Jyoti consumers will also pay the monthly minimum fixed charge @ Rs.30/- per month.

8.4.2.3.7

In case of unmetered supply or defective meter, the energy consumption shall be assessed and billed using a load factor of 20% on the contract demand. For the purpose of calculation, connected load of less than 0.5 KW shall be treated as 0.5 KW.

8.4.2.4

Commercial : The Commission reviewed the existing tariff structure and decided upward revision of the rates as follows :-

8.4.2.4.1

Load factor billing in case of unmetered supply or defective meter in commercial category shall be assessed and billed using the load factor of 30% on the contract demand which is same as connected load. For the purpose of calculation, connected load of less than 0.5 KW shall be treated as 0.5 KW.

8.4.2.5

Small Industry : In the existing tariff, consumers covered under small industry are charged @ 280 paise/unit. The revised rate for this category of consumers will be 320 paise/unit. In respect of these consumers with defective meter and unmetered supply load factor shall continue to be calculated @ 15% on the connected load for the purpose of assessment of consumption and billing.

8.4.2.6

Irrigation : The proposal of licensee for substantially raising the tariff of irrigation category of consumers was examined. The Commission decides that the Energy Charge for this category will be 110 paise/unit in place of 90 paise/unit. Consumers in the irrigation category availing power supply at HT will pay 100 paise/unit in place of the existing rate of 80 paise/unit. In respect of irrigation consumers for the months of June to October, a load factor of 8% and for the month of November to May, a load factor 15% shall be considered for assessment of consumption and billing.

8.4.2.7

The rate of tariff as determined above is reflected in Annex-D.

8.5

Tariff for consumers availing power supply at LT WITH CONTRACT DEMAND 110 KVA and above

8.5.1

Customer Service Charge

8.5.1.1

The Commission examined the present level of Customer Service Charge being levied for the consumers with connected load with 110 KVA and above and decided to continue with the existing level of Customer Service Charge.

Table : 11

8.5.2

Demand and Energy Charges

8.5.2.1

The Commission, in keeping with its objective of rationalisation of tariff structure by progressive introduction of a cost-based tariff, has related the Energy Charge at different voltage levels to reflect the cost of supply. While determining Energy Charge, the principle of a higher rate for supply at a low voltage and a gradually reduced rate as the voltage level goes up has been adopted. The following Energy Charge has been adopted for all loads of 100 KVA and above.

8.5.2.2

The Commission examined the existing level of Demand Charge of Rs.200/KVA/month payable by the consumers with a contract demand of 110 KVA and above. The Commission studied the Demand Charges for similarly placed consumers of other utilities. After examination of the details the Commission has decided not to change the present rate of Demand Charge of Rs.200/KVA/month payable by the consumers with contract demand of 110 KVA and above which shall be payable in addition to the Energy Charge.

8.6

Tariff for HT & EHT consumers

8.6.1

Customer Service Charge for consumers with connected load of 110 KVA and above

8.6.1.1

The licensee has obligation for a consumer once connected to the power system of the licensee and incurs an expenditure for meeting the cost of meter reading, preparation of bills, delivery of bills, collection of revenue and maintenance of customer accounts. The licensee is bound to meet these expenses irrespective of the level of consumption of the consumer.

Table : 12

8.6.2

Demand Charge for consumer with contract demand of 110 KVA and above

8.6.2.1

The Commission examined the existing level of Demand Charge of Rs.200/KVA/month payable by the consumers with a contract demand of 110 KVA and above. The Commission studied the Demand Charges for similarly placed consumers of other utilities. The Commission also took into consideration the Demand Charge being paid by the distribution licensee to the bulk supply licensee. After examination of the details the Commission has decided not to change the present rate of Demand Charge of Rs.200/KVA/month payable by the consumers with contract of 110 KVA and above. The class of consumers and the voltage of supply to whom this charge shall be applicable are listed below.

HT Category

General Purpose
Public Water Works
Large Industry
Power Intensive Industry
Mini Steel Plant
Railway Traction

EHT Category

General Purpose
Large Industry
Railway Traction
Heavy Industry
Power Intensive Industry
Mini Steel Plant

No Demand Charge has been prescribed for emergency supply to CPPs.

8.6.2.2

Consumers with contract demand 110 KVA and above are billed on two part tariff on the basis of reading of the demand meter and the energy meter. They are also allowed to maintain loads in excess of their contract demand. The Demand Charge reflects the recovery of fixed cost payable by the consumer for the reservation of the capacity made by the licensee for the consumers. To insulate the licensee from the risk of financial uncertainty due to non-utilisation of the contracted capacity by the consumer it is necessary that the consumer pays at least a certain amount of fixed cost to the licensee. To arrive at that cost the Commission studied the pattern of demand recorded by the demand meters of all such consumers of the licensee for a period of one year from April, 1999 to March, 2000. The Commission after examination of all such facts have decided that the existing method of billing the consumer for the Demand Charge on the basis of the maximum demand recorded or 80% of the contract demand whichever is higher should continue. The method of billing of Demand Charge in case of consumers without a meter or with a defective meter shall be in accordance with the procedure prescribed in OERC (Conditions of Supply) Code, 1998.

8.6.2.3

As per the OERC (Condition of Supply) Code, 1998 for contract demand above 70 KVA but below 555 KVA supply shall be at 3-phase, 3-wire, 11 kV provided that the consumers connected prior to 01.10.95 may be allowed to continue to receive power at LT. But there are some consumers in the category of domestic, irrigation, public institution, commercial and medium industry have availed power supply at HT. For such types of consumers the Commission has decided to allow the existing Demand Charge as indicated below :-

8.6.2.4

Bills should be raised for these categories of consumers on the basis of their contract demand/connected load calculated in KW.

8.6.3

Energy Charge for consumer with contract demand of 110 KVA and above

8.6.3.1

The Commission, in keeping with its aim of rationalisation of tariff structure by progressive introduction of a cost-based tariff, has related the Energy Charge at different voltage levels to reflect the cost of supply. While determining Energy Charge, the principle of a higher rate for supply at a low voltage and a gradually reduced rate as the voltage level goes up has been adopted. The following tariff structure has been adopted for all loads of 110 KVA and above.

8.6.3.2

However, the Commission has made certain exception to the above provision in respect of domestic and irrigation consumers availing power at HT.

8.6.4

HT Supply for Domestic (Bulk) and Irrigation : With a view to avoid steep rise in tariff in respect of domestic (bulk supply) and irrigation category availing power at HT, the Energy Charge is fixed at @ 230 paise/unit and @ 100 paise/unit respectively. The details are given in Annex-D.

8.6.5

Industrial Colony Consumption : The Commission further directs that the units consumed for the colony shall be separately metered and the total consumption shall be deducted from the main meter reading and billed @ 230 paise/unit for supply at HT and EHT for the energy consumed in colony in excess of 10% of the total consumption shall be billed at the rate of Energy Charge applicable to the appropriate class of industry.

8.6.6

Emergency supply to CPP

The Energy Charge which is being billed @ 350 p/u will be raised by 30 p/u like other consumers getting EHT supply. As such emergency power supply to CPP will be billed @ 380 p/u.

8.6.7

Incentive Tariff for HT and EHT Category of Consumers

8.6.7.1

The Licensee in para 9.3 of their application has proposed a special tariff for industries with load of 25 MVA and above having high load factor. The offer as under is in the form of reduction of Energy Charges for the entire consumption in the relevant month to any industrial consumer having contract demand of 25 MVA or above only if it achieve load factor of at least 70% in the relevant months.

8.6.7.2

The above rate would be only towards the Energy Charge. Demand Charge as applicable would be chargeable in addition to above. In case in any month any industrial consumer having above stated Contract Demand fails to achieve the required Load Factor then the usual Retail Supply Tariff applicable to the said class of consumer would be chargeable. The above Special rates are based on the present Bulk Supply Tariff rates and upon any revision of the same the above special Rates would be revised by the Commission by way of notification in pursuance of decision in this paragraph and could not be kept pending till next tariff revision.

8.6.7.3

The Commission in its last tariff order dtd. 30.12.99 in para 8.5.4.1 had discussed the issue of an incentive tariff for HT and EHT consumers. The Commission being conscious of the revenue requirement of the licensee designed a tariff with the objective of incentivising the consumers for a higher consumption of the licensee’s purchased power and dissuade them from switching over to captive generation. The existing incentive tariff was examined with reference to the suggestion of the licensee and vehement objections were also made by some objectors to the proposal of the licensee as explained in earlier part of this order.

8.6.7.4

The Commission analysed the consumption in respect of all consumers having contract demand 110 KVA and above for the period April, 99 to November, 2000.

8.6.7.5

The Commission observes that the consumption during the months of April to November, 2000 is much higher compared to the consumption recorded during the corresponding period of the previous financial year after incentive was given in form of lower Energy Charge for consumption in excess of 50% load factor.

8.6.7.6

The Commission analysed the load factor from month to month from the months of April, 99 to November, 2000 of all the consumers with CD 110 KVA and above.

8.6.7.7

The Commission also takes into consideration the comparative rates of NTPC tariff and the wheeling charge and transmission loss payable by NESCO consumers utilising such power.

8.6.7.8

The Commission took cognizance of the marginal cost of power procurement from NTPC stations due to additional drawal by the consumers on account of grant of incentive in the form of reduction of Energy Charges for maintaining high load factor.

8.6.7.9

The Commission also takes a broader view of the power situation in the country and has to take into account the possible impact after introduction of ABT which will require payment of fixed charges by GRIDCO to the central generating stations requiring optimum utilisation of energy received from these facilities.

8.6.7.10

The tariff structure for various categories of Power Intensive Industries prevailing elsewhere in the country and impact of switching over of these industries to CPPs in yielding lesser revenue for cross-subsidising have been examined.

8.6.7.11

After taking all these factors into consideration the Commission has come to the conclusion that since the Demand Charge is same for all HT and EHT categories of consumers a higher consumption means a higher plant utilisation and results in a reduced fixed cost per unit. The Commission like the previous year decides to apply the incentive tariff for any consumer availing power supply at HT or EHT who becomes eligible for the same. The Commission does not agree to the proposal of the licensee to limit incentive tariff to 25 MVA and above.

8.6.7.12

It is decided to provide incentive in shape of reduced Energy Charge to those who maintain a high level of consumption. The normal Energy Charges for EHT and HT consumers shall be @ 290 and @ 300 paise/unit respectively as stated in para 8.6.3.1.

8.6.8

Method of Determination of Incentive

8.6.8.1

Incentive shall be available to those consumers who will not reduce their contract demand during the next three financial years.

8.6.8.2

Some objectors objected to recording of load factor during the FY 1999-00 in excess of 100% in the filing made by the licensee on the ground that it had an element of absurdity. As prescribed in OERC Condition of Supply Regulation, 1998 load factor of a consumer under no circumstances can exceed 100%. It is necessary that the method of determination of incentive should be clearly understood.

8.6.8.3

For the purpose of determination of eligibility for incentive tariff percentage of consumption shall be with reference to contract demand or the maximum demand whichever is higher (e.g. CD or MD X PF X number of hours in a month).

8.6.8.4

The ratio of the total number of units consumed during a given period to the total number of units that would have been consumed had the contract demand or the maximum demand whichever is higher was maintained through out the same period as indicated above, exceeds 50%, of the total consumption the consumer will be entitled to get the benefit of incentive.

8.6.8.5

Different rates of Energy Charges in excess of the ratio mentioned above is shown below and explained in the paragraphs hereafter.

8.6.8.6

Demand Charges as applicable would be chargeable in addition to the above.

8.6.9

EHT Consumer

8.6.9.1

Consumption in a month calculated on the basis of the contract demand or maximum demand whichever is higher upto 50% shall be payable @ 290 paise/unit for consumers availing power at EHT.

8.6.9.2

In addition to the above all consumption in excess of 50% but upto and including 60% shall be payable @ 180 paise/unit for consumers availing power at EHT.

8.6.9.3

When the consumption exceeds 60% in a month all such excess consumption shall be payable @ 150 paise/unit for consumers availing power at EHT in addition to the charges indicated at para 8.6.8.2.

8.6.10

HT Consumer

8.6.10.1

Consumption upto 50% shall be payable @ 300 paise/unit for consumers availing power at HT.

8.6.10.2

In addition to the above all consumption in excess of 50% but upto and including 60% shall be payable @ 200 paise/unit for consumers availing power at HT.

8.6.10.3

When the consumption exceeds 60% in a month all such excess consumption shall be payable @ 170 paise/unit for consumers availing power at HT in addition to the charges indicated at para 8.6.9.2.

8.7

Special Tariff for Industries with Contract Demand of 100 MVA and above

8.7.1

A special tariff for industries with a load of 100 MVA and above was prescribed by OERC to encourage prospective large consumers to avail power from the licensee and to ensure that such large industries do not set up captive power plants. The licensee in para 9.2 of the application has proposed no change in the special tariff specified under RST order dtd.30.12.99. The licensee has also stated that this tariff has no impact on the revenue compilation for the year 2000-01 as no consumption is envisaged under this category.

8.7.2

The Commission in the last tariff order had approved a rate of 200 paise/unit for consumption by industries with a contract demand of 100 MVA and above and maintaining a guaranteed monthly load factor of 80%. These consumers will not pay a monthly Demand Charge and shall pay only a consolidated Energy Charge. They will have to restrict their maximum demand within the contracted capacity. In case the maximum demand exceeds the contracted capacity, Demand Charge as applicable to the relevant consumer category will be payable only on the maximum demand in excess of the contract demand. The Commission approves the continuance of this tariff.

8.7.3

The rate of tariff as determined above is reflected in Annex-D.

8.8

Other Charges

The Commission also authorises levy of other charges as given below :-

8.8.1

Penalty for overdrawal of power above the contract demand : As per the existing tariff provisions there is no penalty for overdrawal out side the peak hours upto 120% of the contract demand. This issue was raked up during the course of the public hearing. Some of the objectors pointed out that this provision is being circumvented by consumers who are reducing their contract demand to avail this benefit of overdrawal upto 120% during off peak hours. In the absence of frequency related metering the pious objective of the Commission in helping the flattening of load curve and containing the frequency is not being achieved. The Commission is of the opinion that a beginning has been made and this has to be enforced such that the system gets the benefit due to flattening of the load curve as well as control of frequency which is necessary in a surplus generation situation. Frequency related metering is not essential for measurement of overdrawal and this facility is available only to those industries who are provided with time of day (TOD) metering. The railway traction consumers have consistently demanded for extension of this benefit during off peak hours as well as other hours to them. The Commission after taking all these factors into consideration has decided that this facility which is now available for HT and EHT industries should extend to all consumers availing power supply at HT and EHT. The existing rate of penalty however will continue for overdrawal during peak hours. When the maximum demand exceeds the contract demand during peak hours, such excess demand is liable for a penalty and payable at the prescribed rate of Demand Charge. For this purpose ‘the peak hours’ is defined as 700 hrs to 1000 hrs and 1800 hrs to 2200 hrs.

8.8.2

Metering on LT side of Consumers Transformer : Transformer loss computed as given below to be added to the consumption as per meter reading.

Energy loss = 730 X KVA rating of the transformer/100.

Loss in demand = 1% of the rating of the transformer (for two part tariff)

8.8.3

Incentive for prompt payment : The licensee in his application has estimated that the rebate on account of incentive for prompt payment will be of the order of Rs.0.97 crores during the financial year 2000-01. It has also suggested continuance of the existing rate of incentive for timely payment. The Commission examined the existing method of incentive and its financial implication. The Commission has decided to grant incentive for early and prompt payment as below.

1. A rebate of 10 paise/unit shall be allowed on Energy Charges if the payment of the bill (excluding arrears and electricity duty) is made by the due date indicated on the bill or within a period of 7 (seven) days from the date of receiving the bill in respect of the following categories of consumers.
   LT : Domestic, Commercial, Irrigation and Small Industry
   HT : Bulk supply domestic, commercial and irrigation

2. Consumers other than those mentioned at para ‘a’ above shall be entitled to a rebate of 1% (one percent) of the amount of the monthly bill (excluding arrears and electricity duty), if payment is made within 48 hours of the presentation of the bill.

8.8.4

Delayed Payment Surcharge : The Commission has examined the present method and rate of DPS and has decided that if payment is not made within the due date, Delayed Payment Surcharge shall be charged for every day of delay at 2% per month on the amount remaining unpaid (excluding arrears on account of DPS) in respect of following categories of consumers.

1. Large industries

2. Medium industries

3. Public Water Works

4. Railway Traction

5. Street Lighting

6. Power intensive industries

7. Heavy industries

8. General Purpose Supply

9. Public Institutions

10. Mini Steel Plants

11. Emergency supply to CPP

8.8.5

Incentive for improvement in power factor : The Commission examined the desirability of continuing with the present method of incentives allowable to the consumers for improvement in power factors. NESCO estimates that the rebate alone on this account to HT/EHT consumers will be the order of 9.25 crores during the financial year 2000-2001. NESCO further states that they have been installing capacitor banks for improvement of power factor in the system and benefits of power factor improvement by the HT/EHT consumers has gone to GRIDCO and not to NESCO.

8.8.6

The Commission reviewed the present method of incentive plan and after examining the financial liabilities directs that incentive for maintenance of high power factor shall be given as a percentage of the monthly Demand Charge and Energy Charge and shall be applicable to the HT/EHT categories of consumers who are liable to pay power factor penalty. The rate of this incentive will be 0.5% for every 1% rise above 97% upto and including 100% on the monthly Demand Charge and Energy Charge.

8.8.7

Power Factor Penalty : The Commission also orders for continuance of the power factor penalty as a percentage of monthly Demand Charge and Energy Charge as given below to the following categories of consumers :

i) Large Industries
ii) Public Water Works (110 KVA and above)
iii) Railway Traction
iv) Power Intensive Industries
v) Heavy Industries
vi) General Purpose Supply
vii) Public Institutions (110 KVA and above)
viii) Mini Steel Plants
ix) Emergency supply to CPP

Rate of Power Factor Penalty :-

i) 0.5 for every 1% fall from 90% upto and including 60% plus
ii) 1% for every 1% fall below 60% upto and including 30% plus
iii) 2% for every 1% fall below 30%

8.8.8

Adoption of load factor for consumers with defective meter and without meter : The Commission in its last tariff order dtd.30.12.99 had directed continuance of the existing method of load factor billing subject to review from time to time. The progress with regard to the repair/replacement/ installation of new meters by the licensee in the premises of the consumers is being reviewed by the Commission at the end of every quarter (OERC Form P-13). The details of the metering as reported by NESCO is given in para 5.29.11 of this order. The licensee has stated that arrangements have been made to procure 2 lakh single-phase meter and proposes to install 50,000 meters during FY 2000-01 as reported in OERC Form No.P-14. The licensee estimates loss reduction of 3.25% on account of detection of unauthorised abstraction of electricity and replacement of meters. The licensee has requested for continuance of the present load factor percentage to serve as a dis-incentive for the consumers and help adoption of metering by consumers.

8.8.8.1

The Commission examined the facts and figures submitted by the licensee and had the view expressed by the objectors, some of whom wanted reduction in the present level of load factor being applied for defective and unmetered consumers. It was also brought out by some of the objection that there has been an actual enhancement in the number of unmetered consumers and reduction and marginal reduction of consumers with defective meters. The Commission’s serious area of concern is metering. The licensee should take all out efforts for maximisation of installation of meters, repair and replacement of meters, and the method of load factor billing cannot continue in perpetuity. The licensee must submit a plan of action within a period of 3 months about 100% metering of all consumers to be completed within a definite time frame. The Commission will continue to review the status of metering and measures taken for eradication of unauthorised tapping from the distribution mains. The licensee shall submit the information at the end of each quarter for information and review of the Commission. The Commission however, orders for continuance of the existing method of load factor billing mainly because of the ground situation that control over large scale of pilferage of electricity shall take some more time.

8.8.9

Customer Charge : As indicated in paragraph 8.6.1 above and also Annex-D there shall be no change in the existing rate of customer charge.

8.8.10

Re-connection Charge : The existing rates of reconnection charge as below shall continue :-

8.8.11

Rounding off a consumer billed amount to nearest rupee : The Commission directs for rounding off of the electricity bills to the nearest rupees and at the same time directs that the money actually collected should be receipted and accounted for.

8.8.12

Temporary Connection Charges : The tariff for the period of temporary connection shall be at the rate applicable to the relevant consumer category.

8.8.13

New Connection Charges for LT : The Commission in its last tariff order had directed that prospective small consumers requiring new connections upto and including 3 kW load should pay a flat charge of Rs.500/-. This was intended to do away with the then practice of preparation of estimate and payment of charge based on the estimated amount shall continue without any change for connections above 3 kW load. It was also directed for preparation of estimate for connection above 3 kW connected load. Complaints were raised during the course of the hearing about non-observance of this direction of the Commission. The licensee should submit a statement of new connections given during the first six months of the current financial year and intimate the rate that has been charged in each of the consumer cases.

8.8.14

Fuel Surcharge Adjustment Formula : The Commission has already prescribed a fuel surcharge adjustment formula for the distribution licensee which shall continue to be valid.

8.8.15

Meter Rent : Monthly meter rent as per the existing rate shall be charged from the consumers to whom meter has been supplied by the licensee. The scale of meter rent including associated equipment applicable to various classes of consumers is given below :-

9.0

In the light of our findings, the Commission decides as follows :-

1. The Commission does not approve the licensee’s calculation of revenue and proposal for tariff.

2. The Commission directs that tariff as determined in this order be implemented by the licensee effective from 1^st February, 2001 until further order in this regard. The tariff schedule for various classes of consumers at Annex-D is approved.

3. The Commission does not approve of the expected revenue from charge at the existing tariff from 2000-01 as proposed by the licensee and has approved a modified figure after due examination of the facts, figures and submissions made by the licensee.

4. The Commission accepts the request of NESCO that it will be permitted to carry forward the gap between the expected revenue and the revenue requirement for 2000-01 as well as for 1999-00 within the benchmark approved by the Commission for adjustment during the future years after vetting of the figures by the Commission.

5. The Commission does not accede to the prayer of the licensee for accepting the loss for the year 1999-2000 as it occurred due to inability to remain within performance parameters set by the Commission.

          The application of M/s. NESCO is disposed of accordingly.

H. S. Sahu
Member

D. K. Roy
Chairman

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