3.0
|
GRIDCO'S PROPOSAL
|
3.1
|
GRIDCO is a constituent of the
Eastern Regional Electricity Board of India and holds the Bulk Supply and Transmission
License for the State of Orissa. It owns an EHT network for transmission of power from the
various generating stations within the State as well as for interconnection with the
neighbouring regions of the country. It purchases power from the generators for supply of
bulk power to four DISTCOs within the State for retail supply to their consumers, export
of power to the needy states in the country through bilateral agreements and sometime to
meet the ancillary power requirement of the captive power plants, connected with the
system.
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3.2
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Physical Projections
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3.2.1
|
The actual average maximum demand
met by GRIDCO for the year 2000-01 estimates for the FY 2001-02 and FY 2002-03 to cater to
the requirement of the various distribution companies as projected by GRIDCO are as given
in Table : 1. Table : 1
Demand projection
(Figures in MVA)
Name of the Company |
Actuals/ 2000-01 |
Estimate/ 01-02 |
Estimate/ 02-03 |
CESCO |
653.94 |
647.144 |
683.250 |
NESCO |
381.45 |
356.023 |
457.678 |
WESCO |
477.78 |
492.893 |
503.323 |
SOUTHCO |
261.78 |
250.039 |
263.468 |
Total |
1774.94 |
1746.098 |
1908 |
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3.2.2
|
The energy requirement for the
distribution companies for FY 2001-02 and FY 2002-03 as reported by GRIDCO for DF-2 of the
BST and RR application is given in Table : 2. Table : 2
Energy Projection
(Figures in MU)
Name of the Company |
Actuals 2000-01 |
Estimate/01-02 |
Estimate/2002-03 |
CESCO |
4025.30 |
4204.91 |
4321.00 |
NESCO |
2444.15 |
2592.90 |
3023.00 |
WESCO |
2870.20 |
2956.31 |
3066.54 |
SOUTHCO |
1522.73 |
1685.46 |
1713.71 |
Total |
10862.38 |
11439.58 |
12124.25 |
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3.2.3
|
GRIDCO in para 3.5 of their BST
application for FY 2001-02 and that of FY 2002-03 has stated that due to existing
uncertainties in the sale of energy outside the state, the sale to other states has not
been considered in the BST application and RR application. Subsequently, in the
clarifications to queries of Director (Tariff), GRIDCO has stated that total estimated
sale to APTRANSCO during FY 2002 would be 716.41 MU and about 1400 MU to APTRANSCO and
Karnataka in FY 2003. On 30.3.2002, GRIDCO has stated that subject to fresh agreement with
APTRANSCO and Northern Region and resolution of wheeling constraints there may be an
estimated sale of 2376 MU in FY 2003.
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3.3
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Revenue Requirement for
FY 2001-02
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3.3.1
|
To carry out its various
activities, GRIDCO is required to meet the cost of power purchase of the generators and
the cost of transmission to cover expenses on account of employees, administration and
general expenses, repair and maintenance expenses, depreciation, interest on loan,
appropriation to contingency reserve and reasonable return based on the methodology
prescribed in the Sixth Schedule to the Supply Act 1948 (TRF-5). It has also to cover the
cost of transmission loss in the system as well as the cost of capital to meet the
requirement of new investment to improve and ensure the system reliability and quality of
power supply.
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3.3.2
|
GRIDCO earns its revenue through
bulk supply tariff from the four distribution companies, from export of power outside the
state, sale of power to sources other than the DISTCOs through ancillary services and from
wheeling charges for utilisation of its transmission system for transmission of power to
other regions of the country and CPPs for loads at distant places. The summary of the
proposals filed by GRIDCO is given in Table : 3 (TRF-5 of clarification). Table
: 3
Revenue Requirement For 2001-02
(Rs. in Crore)
a) |
Power Purchase Cost |
1585.65 |
b) |
Transmission Cost |
509.37 |
c) |
Previous loss (Drawal by DISTCOs &
previous period bills) |
108.25 |
d) |
Contribution to contingency reserve |
7.31 |
e) |
Revenue Requirement (a+b+c+d) |
2210.58 |
f) |
(-) Misc. Receipts |
15.48 |
g) |
Net Revenue Requirement (e+f) |
2195.10 |
h) |
Reasonable Return |
114.49 |
|
Revenue Requirement (g+h) |
2309.59 |
|
Net Revenue Receipt from sale of power to
DISTCOs |
1547.10 |
|
Deficit |
(762.49) |
|
3.3.3
|
For the FY 2001-02, GRIDCO submits
that there has been an unusual upsurge in the cost of power purchase from the Central
Generating Station. The cost of power purchase of OHPC has increased substantially in FY
2001-02 due to interest on convertible bonds and conversion of bonds to equity which was
envisaged in transfer scheme notification issued by the Government of Orissa on 01.4.96
under the provision of OER Act, 1995 at the time of restructuring of the power sector.
Further, the purchase of low cost of power from the Captive Power Plant of NALCO became
lesser due to Ash Pond problem.
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3.3.4
|
GRIDCO in its BST application for
FY 2001-02 has requested for acceptance of Rs.108.25 Crore on account of arrear dues and
Rs.60.13 Crore relating to power procurement for the financial year 2000-01 due to
variation in drawal from different sources and Rs.47.83 Crore on account of
increase in fixed cost of Central NTPC stations, TTPS and PGCIL and electricity duty of
Rs.29 lakh for OHPC which was not previously claimed.
|
3.3.5
|
A summary of the proposal of
GRIDCO’s expected revenue for FY 2001-02 and FY 2002-03 is given in Table : 4 (TRT
24-2001-02, TRT 23-2002-03). Table : 4
Expected Revenue charges 2001-02 & 2002-03
(Rs. in Crore)
|
|
(EXPECTED
REVENUE WITH ANTICIPATED SALE AT EXISTING RATES) |
Sl. No. |
NET TOTAL
REVENUE (DISTCOs) |
CESCO |
NESCO |
WESCO |
SOUTHCO |
TOTAL |
1 |
FY 2001-02
|
571.60 |
344.73 |
419.07 |
211.70 |
1547.10 |
2 |
FY 2002-03
|
591.76 |
412.14 |
432.79 |
217.47 |
1654.22 |
|
3.4
|
Recovery of cost through
Bulk Supply Tariff for FY 2001-02
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3.4.1
|
GRIDCO proposes to set the BST to
recover the full cost of supply of Rs.2309.58 Crore based on a two-part tariff structure
comprising demand charges and energy charges. It envisages that 48.03% of its total cost
is fixed in nature involving dedicated stations like TTPS, OPGC, the cost of Transmission
and the reasonable return aggregating to Rs.1109.39 Crore. The variable component is
estimated to be 51.97% totaling to Rs.1200.19 Crore to cover the cost of power purchase
from the Hydro stations, the variable costs of TTPS, OPGC, Captive Power Plants and the
total cost of Central Stations along with a pass through of the additional power purchase
cost for the financial year 2000-01 accrued on account of departure from the volume of
power purchase and the mix of power purchase approved by the Commission for that year.
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3.4.2
|
For recovery of the entire cost,
GRIDCO has projected two alternative options (Table 34 of BST application FY 02). Table : 5
Tariff Structure Options
Structuring Option
|
Demand Charges
Rs./kVA/Month |
Energy Charges Paisa/unit |
Structuring Demand Charges to cover full cost
of transmission and all the fixed cost of power purchase. Energy Charges will cover
only the variable costs of generation |
529.46 |
104.92 |
Demand Charges of Rs.250 per kVA per month. Energy
Charges will cover balance fixed costs and all variable costs of generation. |
250.00 |
156.10 |
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3.4.3
|
In proposing the structure, GRIDCO
has stated that realisation of fixed cost payable to the generators should be ensured to
meet its obligation to generators and maintain the system stability. This could be
possible only by designing the demand charges for recovery of the entire fixed cost
through it. However, as full cost recovery entails a steep rise for the purpose of this
application, GRIDCO proposes to fix it at the level of Rs.250/- per KVA.
|
3.4.4
|
GRIDCO has been billing to the
distribution companies the demand charge on the basis of simultaneous maximum demand for
each month. GRIDCO has submitted that till the contract demand is finalised with the
distribution companies, the demand to be billed in a month will be the higher of the SMD
of the month or the difference between the SMD billed during the months in the financial
year upto the month of billing based on the SMD approved by Commission in the tariff
order.
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3.4.5
|
GRIDCO has assessed the revenue
receipt from demand charges based on a total Simultaneous Maximum Demand (SMD) of 1746.098
MVA is given in Table : 6. Table : 6
Computation of Demand Charges
Demand charges per month
|
Rs.250.00 KVA |
Chargeable Demand (2001-02)
|
1746.098 MVA |
Revenue from Demand Charges
|
Rs.523.83 Crore |
|
3.5
|
Energy Charges
As explained in the table above, after deduction of the revenue earnings from demand
charges, balance revenue requirement is proposed to be realised through energy charges,
the computation of which is shown in Table : 7. Table : 7
Computation of Energy Charges (2001-02)
Total Revenue Requirement from BST
|
Rs.2309.58 Cr |
Revenue from Demand Charges
|
Rs.523.83 Cr |
Balance revenue to be recovered from Energy
Charges (a)
|
Rs.1785.75 Cr |
Quantity Sold (b)
|
11,439.58 MU |
Energy Charges per unit (a / b)
|
156.10 paise |
|
3.6
|
Over Drawal Charges GRIDCO
follows the principle of least cost procurement of power to minimize the total cost of
generation. Any excess drawal from the procurement plan provided by the DISTCOs will force
GRIDCO to procure power from the costlier sources not covered in the revenue requirement
finalised by the Commission. GRIDCO has drawn the attention of the Commission to the BST
approval order for the 2000-01 where the Commission had approved that higher cost
resulting from any drawal in excess of the projected requirement by DISTCOs would be
charged as a year end adjustment to cover the marginal cost of power purchase plus
transmission charges and transmission losses. GRIDCO has sought for approval of the same
provision in the order for this tariff application of 2001-02 with a stipulation that
GRIDCO may be allowed to raise the bill for overdrawal automatically. |
3.7
|
Delayed payment surcharge
GRIDCO has proposed levy of delayed payment surcharge @ 2% per month for
payments received after the period of 30 days from the date of submission of the bills in
line with the existing provisions in the BST order of 2000-01. |
3.8
|
Rebate Corresponding
to the delayed payment surcharge, GRIDCO has also proposed a rebate of 2% of the amount of
the monthly bill, if payment is made in full within 48 hours of the presentation of the
bill, 1.5% rebate, if a minimum of 85% out of billed amount is paid within 48 hours and 1%
rebate on the balance amount if paid in full within 15 days of the presentation of the
bill. For full payment made within 15 days from submission of in bill, a rebate of 1% may
be allowed. |
3.9
|
Carry forward of revenue
gap GRIDCO has prayed that the proposed BST may be made applicable from
Feb. 1, 2002 and any gap between the approved revenue requirement for FY 2002 and the
revenue realised may be approved as a carry forward for adjustment during the future
years. |
3.10
|
Transmission tariff
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3.10.1
|
GRIDCO has estimated that the full
cost of transmission including reasonable return will come to Rs.621.73 Crore. On the
basis of its cost estimate, the calculation of transmission tariff proposed by GRIDCO is
given in Table : 8. Table : 8
Transmission Tariff
Transmission Cost with Reasonable Return less
revenue from interstate wheeling (a)
|
Rs.621.73 Cr. |
Total Units Sold to DISTCOs (b)
|
11,439.58 MU |
Total Units Wheeled (c)
|
345 MU |
Transmission Tariff [a/(b+c)] per/unit
|
52.8 paise |
|
3.10.2
|
GRIDCO has proposed that fixation
of transmission tariff for the CPPs at 52.8 paise/unit will defeat the very purpose of
setting up of CPPs which are considered as second cheapest source of power to GRIDCO at
present. Hence, for encouraging installation of more number of CPPs in the State, the
wheeling charges to the CPPs for transportation of power to their sister units may be
fixed at 17.5 paise/unit in line with the wheeling charge being levied for MPSEB and other
states for wheeling of power through interstate transmission lines. However, in the Annual
Revenue Requirement application of FY 2002-03, GRIDCO has calculated miscellaneous
receipts on account of wheeling to CPP @ 31 paise/unit.
|
3.11
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Transmission Loss
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3.11.1
|
GRIDCO projects transmission loss of
4.6% for FY 2001-02 calculated in the net method on the basis of actual energy exchange in
the GRIDCO's transmission system for the FY 2000-01. GRIDCO proposes to reduce
transmission losses @ 0.2% per annum successively from FY 02-03 as submitted in its
business plan.
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3.11.2
|
Accordingly, for the year 2002-03,
GRIDCO projects transmission loss of 4.4% in their Annual Revenue Requirement application.
|
3.12
|
Summary of Tariff filing
of 2001-02
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3.12.1
|
GRIDCO in DF-22 of their
application has sought for approval of Bulk Supply Tariff comprising :-
-
Demand charges @ Rs.250 per KVA/month
-
Energy charges @ 156.10 paise/unit on energy supplied
-
Charges for overdrawal in demand and energy
-
Delayed Payment Surcharge as proposed
-
Rebate as proposed
-
Duty and Taxes - Electricity duty levied by Government of Orissa and any other statutory
levy/duty imposed under law shall be charged over and above tariff
Transmission tariff covering:-
-
Wheeling charges @ 17.5 paise/unit
-
Transmission loss @ 4.6%
-
Delayed Payment Surcharge
-
Duty and taxes as applicable
|
3.13
|
REVENUE REQUIREMENT FY
2002-03
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3.13.1
|
GRIDCO in their revenue requirement
filed for FY 2002-03 has submitted that the forecast of monthly energy requirement and
maximum demand has been provided by CESCO, WESCO and NESCO. In respect of SOUTHCO, energy
requirement has been assessed based on the historical average demand, addition of new
railway traction loads, and commissioning of new grid sub-station at Akhusingh and
Parlakhemundi. On the above basis, the company wise energy requirement and demand
assessment has been made by GRIDCO.
|
3.13.2
|
In their latest submission to the
Commission in response to queries of Director, Tariff on 30.3.2002, GRIDCO has stated that
NESCO has in the meantime revised the projected energy and KVA demand vide letter
dt.26.3.2002. In their latest projection, NESCO has requested for 2291.20 MU and 378.85
MVA for FY 2002-03. SOUTHCO has also projected energy as 1682.39 MU and demand as 275.40
MVA.
|
3.13.3
|
For the purpose of calculation of
expected revenue, GRIDCO has considered the existing rate of BST.
|
3.13.4
|
For determination of revenue
requirement, GRIDCO has taken into consideration the quantum of power purchased from the
various generating stations, the cost of transmission and contribution to the contingency
reserve after giving a credit of miscellaneous receipts on account of wheeling of power to
the CPPs and wheeling to other states GRIDCO has assessed a deficit of Rs.645.86 Crore on
the aforesaid basis given in Table : 9. Table : 9
Revenue Requirement for FY 2002-03
(Rs. in Crore)
a. |
Power Purchase Cost |
1636.11 |
b. |
Transmission Cost |
571.96 |
c. |
Contribution to contingency reserve |
9.92 |
d. |
Total Revenue Requirement (a+b+c) |
2217.99 |
e. |
(-) Misc. Receipts |
19.92 |
f. |
Reasonable Return |
102.01 |
g. |
Net Revenue Requirement (d – e +
f) |
2300.08 |
h. |
Net Revenue Receipt from sale of power to
DISTCOs |
1654.22 |
|
Deficit (g – h) |
(645.86) |
|
3.13.5
|
GRIDCO has stated that the
Commission may approve the annual requirement of Rs.2300.08 Crore for the FY 2002-03.
Further, recovery of additional cost on account of statutory increase, if any, passed as
surcharge on to GRIDCO by various generators & PGCIL on account of OERC/CERC orders
may be allowed.
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3.13.6
|
On 18.03.2002, GRIDCO during the
hearing prayed that since the financial year 2001-02 would possibly be over by the time
the new tariff would be in force, the Commission may kindly consider the cost as well as
deficits of the FY 2001-02 along with the revenue requirement application of GRIDCO for FY
2002-03 while deciding the Bulk Supply Tariff and Revenue Requirement for FY 2002-03.
|