CASE NO.62/2001 & 10/2002

Present : Shri D. C. Sahoo, Chairman
           Shri H.S. Sahu, Member
           Shri B.C. Jena, Member

Date of Hearing : 23.03.2002
Date of Order : 19.04.2002

IN THE MATTER OF  An application for approval of Revenue Requirement for the FY 2001-02 and for Retail Supply Tariff and charges for FY 2001-02 under Section 26 of Orissa Electricity Reform Act, 1995.

&

For approval of Annual Revenue Requirement for financial year 2002-03 under Section 26(4) of the Orissa Electricity Reform Act 1995 read with condition 21.1 of the Orissa Retail Supply License 1997 (No.2/97).

O R D E R

Order on Distribution and Retail Supply Tariff and approval of Revenue Requirement for FY 2001-02 & 2002-03 for CESCO (Case No.62/2001 & 10/2002)

1. Procedural History

2. Legal Objections as to the maintainability of the Cases

3. CESCO's Proposal

4. Objections during hearing

5. Clarification sought by Director (Tariff), OERC

6. CESCO's reply to the objectors

7. CESCO's reply to Director(Tariff)

8. Commission's observation and analysis of licensee's proposal

9. Scenario of the power sector reform in Orissa

10. Restructuring of the Power Sector

11. Strategies for improvement of power sector

12. Depreciation of DISTCOs

13. Reasonable Return

14. Treatment of Working Capital

15. T & D Loss

16. Method of determination of Power Purchase

17. Determination of expected revenue

18. Collection efficiency of DISTCOs

19. Summary of revenue requirement of DISTCOs for FY 2001-02 & 2002-03

20. Operating Expenses

21. Employees Cost

22. Repair & Maintenance Expenses

23. Administration & General Expenses

24. Interest on Loan

25. Interest Capitalised

26. Depreciation

27. Bad & Doubtful Debt

28. Other expenses

29. Previous Loss

30. Contribution to contingency reserve

31. Other special appropriation permitted by OERC

32. Capital Base

33. Receipts against consumers contribution

34. Original cost of Work in Progress

35. Investment under Para IV

36. Working Capital

37. Average Cash and Bank Balance

38. Accumulated Depreciation

39. Loans and Bonds

40. Consumers' Security Deposit

41. Reasonable Return

42. Miscellaneous Receipt

43. Revenue requirement, Reasonable Return and Clear Profit

44. Tariff Issues

45. Tariff Hike

46. Wheeling Charges

47. Load Factor Billing

48. Incentive for maintaining high power factor

49. Incentive for prompt payment

50. Metering of street lights

51. Multi -year Tariff

52. Consumer Service

53. Construction Power

54. Observation for over-drawal penalty clause

55. Observation for incentive for higher consumption

56. Treatment of past losses

57. Demand charge during statutory power-cut

58. Meter rent

59. Quality of supply and service

60. Un-authorised and illegal abstraction of electricity

61. Rural Electrification

62. Special tariff for Power Intensive Industries

63. Emergency power supply to CPPs

64. Corrective measures and alternative calculation of revenue requirement

65. Expected revenue from charges

66. Tariff revision proposal

67. Annex- A1       Revenue Requirement for FY 2001-02

68. Annex -B1       Calculation of Capital Base and Reasonable Return for FY- 2001-02

69. Annex -C1       Calculation of Clear Profit for FY- 2001-02

70. Annex -A2       Revenue Requirement for FY 2002-03

71. Annex -B2       Calculation of Capital Base and Reasonable Return for FY - 2002-03

72. Annex -C2       Calculation of Clear Profit for FY 2002-03

73. Annex - D1     Tariff effective from 1st February, 2001

74. Annex - D2     CESCO's Tariff revision proposal for FY 2001-02

75. Annex - D3     Tariff schedule for FY 2002-03
    

M/s Central Electricity Supply Company of Orissa Ltd., Janpath, Bhubaneswar (CESCO, in short), the holder of The Orissa Distribution and Retail Supply Licence, 1999 (No.1/1999) has submitted two applications u/s 26 of the Orissa Electricity Reform Act, 1995 (Reform Act, 1995, for short) in respect of its Revenue Requirement and Tariff for Retail Supply of electricity for different categories of consumers. Its application for determination of Tariff for the Financial Year 2001-2002 has been registered as Case No.62/2001 and application for Revenue Requirement for the Financial Year 2002-2003 has been registered as Case No.10/2002. Both the Cases being inter-related to each other have been heard analogously and are being disposed off by this common order.

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