Post on 06-Sep-2019
TRIPURA ELECTRICITY REGULATORY COMMISSION
Tariff Order:
True-up of FY 2012-13,
Review of ARR of 2013-14
&
Determination of Aggregate Revenue Requirement
&
Retail Tariff for FY 2014-15
For
Tripura State Electricity Corporation Limited
Case No. 1 of 2014
November 22nd, 2014
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page ii
November 2014
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page iii
November 2014
CONTENTS
1 Background and Brief History .................................................................. 20
1.1 Contents of this Order ................................................................................. 20
1.2 Background ................................................................................................. 20
1.3 Tripura State Electricity Corporation Limited (TSECL) ................................ 20
1.4 Tripura Electricity Regulatory Commission ................................................. 21
1.4.1 Functions of the Commission ............................................................... 21
1.4.2 Regulations notified by the Commission ............................................... 22
1.5 Tariff Orders issued by the Commission earlier .......................................... 23
1.6 Admission of current Petition and Public Hearing Process ......................... 24
1.6.1 Admission hearing and admission of the current Petition ..................... 24
1.6.2 Public Hearing process ......................................................................... 25
1.7 Interaction with the Petitioner ...................................................................... 26
1.8 Approach of this Order ................................................................................ 28
1.8.1 Truing-up for FY 2012-13 ..................................................................... 28
1.8.2 Review for FY 2013-14 ......................................................................... 28
1.8.3 ARR and Tariff for FY 2014-15 ............................................................. 29
1.9 State Advisory Committee ........................................................................... 30
2 Summary of true up for FY 2012-13, Review for FY 2013-14 and ARR for
FY 2014-15 .................................................................................................... 31
2.1 True up for FY 2012-13 ............................................................................... 31
2.2 Review of ARR for FY 2013-14 ................................................................... 32
2.3 ARR for FY 2014-15 .................................................................................... 33
2.4 Prayers of TSECL ....................................................................................... 33
3 Objections raised by the objector, TSECL’s response and the
Commission’s views ...................................................................................... 35
4 Truing up for FY 2012-13 ......................................................................... 39
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page iv
November 2014
4.1 Energy Sales ............................................................................................... 39
4.2 Own Generation .......................................................................................... 41
4.3 Power Purchase .......................................................................................... 45
4.4 Transmission and Distribution Loss ............................................................ 47
4.5 Energy Balance ........................................................................................... 52
4.6 Fuel Purchase Cost ..................................................................................... 54
4.7 Power Purchase Cost ................................................................................. 56
4.8 Operation and Maintenance (O&M) expenses ............................................ 59
4.8.1 Employee Expenses ............................................................................. 59
4.8.2 Repair and Maintenance (R&M) expenses ........................................... 60
4.8.3 Administrative and General (A&G) expenses ....................................... 60
4.9 Depreciation ................................................................................................ 62
4.10 Interest and Finance Charges .................................................................. 65
4.11 Interest on Working Capital ...................................................................... 69
4.12 Reasonable Return .................................................................................. 71
4.13 Prior Period Income/Expense .................................................................. 75
4.14 Non Tariff Income .................................................................................... 76
4.15 Truing up of ARR for FY 2012-13 ............................................................ 78
4.16 Revenue from sale of power .................................................................... 79
4.17 Revenue subsidy from Government of Tripura ........................................ 81
4.18 Receivable for energy not sold or lost in the system ................................ 82
4.19 Revenue for FY 2012-13 .......................................................................... 84
4.20 Revenue gap/surplus ............................................................................... 84
5 Review of Aggregate Revenue Requirement (ARR) for FY 2013-14 ....... 86
5.1 Energy Sales ............................................................................................... 86
5.2 Own generation ........................................................................................... 88
5.3 Power Purchase .......................................................................................... 91
5.4 Transmission and Distribution Loss ............................................................ 93
5.5 Energy balance ........................................................................................... 94
5.6 Fuel purchase cost ...................................................................................... 96
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page v
November 2014
5.7 Power purchase cost ................................................................................... 98
5.8 Operation and Maintenance (O&M) expenses .......................................... 101
5.8.1 Employee expenses ........................................................................... 101
5.8.2 Repair and Maintenance (R&M) expenses ......................................... 102
5.8.3 Administrative & General (A&G) expenses ......................................... 102
5.9 Depreciation .............................................................................................. 103
5.10 Interest and Finance Charges ................................................................ 105
5.11 Interest on Working Capital .................................................................... 107
5.12 Reasonable Return ................................................................................ 109
5.13 Non-Tariff Income .................................................................................. 112
5.14 ARR for FY 2013-14 .............................................................................. 113
5.15 Revenue from sale of power .................................................................. 114
5.16 Revenue Subsidy from Government of Tripura ...................................... 116
5.17 Receivable for energy not sold or lost in the system .............................. 117
5.18 Revenue for FY 2013-14 ........................................................................ 119
5.19 Revenue gap/surplus ............................................................................. 119
6 Aggregate Revenue Requirement (ARR) for FY 2014-15 ...................... 121
6.1 Energy Sales ............................................................................................. 121
6.1.1 Petitioner’s approach .......................................................................... 121
6.1.2 Consumer Profile and Connected Load .............................................. 122
6.1.3 Commission’s approach ..................................................................... 123
6.1.4 Category-wise energy sales for previous years .................................. 123
6.2 Detailed analysis of category-wise energy sales ....................................... 124
6.2.1 Approved category-wise energy sales for FY 2014-15 ....................... 130
6.3 Own generation ......................................................................................... 131
6.4 Power Purchase ........................................................................................ 137
6.5 Transmission and Distribution Loss .......................................................... 138
6.6 Energy Balance ......................................................................................... 140
6.7 Fuel purchase cost .................................................................................... 142
6.8 Power purchase cost ................................................................................. 144
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page vi
November 2014
6.9 Operation and Maintenance (O&M) expenses .......................................... 148
6.9.1 Employee expenses ........................................................................... 149
6.9.2 Repair & Maintenance (R&M) expenses............................................. 150
6.9.3 Administrative and General (A&G) expenses ..................................... 150
6.10 Depreciation ........................................................................................... 152
6.11 Interest and Finance Charges ................................................................ 154
6.12 Interest on Working Capital .................................................................... 157
6.13 Reasonable Return ................................................................................ 159
6.14 Non-Tariff Income .................................................................................. 161
6.15 ARR for FY 2014-15 .............................................................................. 162
6.16 Revenue from sale of power .................................................................. 162
6.17 Revenue Subsidy from Government of Tripura ...................................... 165
6.18 Revenue gap/surplus for FY 2014-15 .................................................... 165
6.19 Consolidated revenue gap/surplus......................................................... 166
7 Compliance to Directives of the Commission ......................................... 170
7.1 Adherence to the past directives ............................................................... 170
7.2 Fresh directives ......................................................................................... 178
8 Tariff Principles and design .................................................................... 181
8.1 Tariff principles .......................................................................................... 181
8.2 Proposal of TSECL for revised tariff .......................................................... 183
8.3 Tariff approved by the Commission ........................................................... 186
8.3.1 Existing Tariff Rates ........................................................................... 186
8.3.2 Approved Tariff Rates ......................................................................... 189
8.4 Approved miscellaneous and other charges ............................................. 199
Annexure I: Approved Tariff Schedule for FY 2014-15 ................................ 205
Annexure II: Tariff Schedule for FY 2014-15 after considering Government
Subsidy ........................................................................................................ 207
Appendix 1: Number of consumers from FY 2012-13 to FY 2014-15(P) ..... 210
Appendix 2: Connected load from FY 2012-13 to FY 2014-15 (P) .............. 212
Appendix 3: Sales from FY 2012-13 to FY 2014-15 (P) .............................. 214
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page vii
November 2014
TABLES
Table 1-1: List of consumers who filed objections/suggestions in writing on the ARR
and Tariff Petition of TSECL ..................................................................................... 25
Table 1-2: List of Correspondence between the Commission and TSECL............... 27
Table 2-1: ARR for FY 2012-13 approved in the Tariff Order dated June 25th, 2013
and claimed by TSECL in truing up for FY 2012-13 ................................................. 31
Table 2-2: ARR for FY 2013-14 approved in the Tariff Order dated June 25th, 2013
and claimed by TSECL in Review of FY 2013-14 .................................................... 32
Table 2-3: ARR for FY 2014-15 proposed by TSECL............................................... 33
Table 4-1: Category wise intra-State sales submitted by TSECL for FY 2012-13 .... 39
Table 4-2: Category wise intra-State sales submitted by TSECL for FY 2012-13
(revised submission) ................................................................................................ 40
Table 4-3: Approved category-wise intra-State energy sales for FY 2012-13 .......... 41
Table 4-4: Plant-wise own generation submitted by TSECL for truing up of FY 2012-
13 ............................................................................................................................. 42
Table 4-5: Approved generation from TSECL’s own generating stations for FY 2012-
13 ............................................................................................................................. 44
Table 4-6: Allocation of power from CGS to TSECL ................................................ 45
Table 4-7: Actual Power Purchase for FY 2012-13 .................................................. 46
Table 4-8: Approved Power Purchase for FY 2012-13 ............................................. 47
Table 4-9: T&D loss of TSECL in previous years ..................................................... 47
Table 4-10: LT:HT ratio vis-à-vis T&D loss of TSECL .............................................. 49
Table 4-11: Kutir Jyoti and Domestic category sales as % of total intra-State sales
vis-à-vis T&D loss of TSECL .................................................................................... 50
Table 4-12: Approved T&D loss for FY 2012-13 ...................................................... 52
Table 4-13: Energy Balance for FY 2012-13 submitted by TSECL .......................... 52
Table 4-14: Approved energy balance for FY 2012-13 ............................................ 53
Table 4-15: Fuel purchase cost submitted by TSECL for truing up of FY 2012-13 .. 54
Table 4-16: Approved fuel purchase cost for FY 2012-13 ........................................ 55
Table 4-17: Power Purchase Cost as submitted by TSECL for truing up for FY 2012-
13 ............................................................................................................................. 57
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page viii
November 2014
Table 4-18: Approved Power Purchase Cost for FY 2012-13 .................................. 58
Table 4-19: O&M expenses claimed in the truing-up for FY 2012-13 ....................... 59
Table 4-20: O&M expenses approved for FY 2012-13 ............................................. 61
Table 4-21: Depreciation claimed by the Petitioner for truing up of FY 2012-13 ...... 62
Table 4-22: Net Depreciation claimed by the Petitioner for truing up of FY 2012-13 63
Table 4-23: Source wise loan submitted by the Petitioner for truing up of FY 2012-13
................................................................................................................................. 67
Table 4-24: Interest on Loan submitted by the Petitioner for truing up of FY 2012-13
................................................................................................................................. 67
Table 4-25: Interest and Finance Charges submitted by the Petitioner for truing up of
FY 2012-13 .............................................................................................................. 68
Table 4-26: Interest and Finance Charges approved for truing up of FY 2012-13 ... 68
Table 4-27: Norms for Interest on Working Capital submitted by the Petitioner for
truing up of FY 2012-13 ............................................................................................ 69
Table 4-28: Percentage break up of Gross Fixed Assets for G, T and D as submitted
by the Petitioner for truing up of FY 2012-13 ............................................................ 70
Table 4-29: Interest on Working Capital as submitted by the Petitioner for truing up of
FY 2012-13 .............................................................................................................. 70
Table 4-30: Interest on working capital approved for FY 2012-13 ............................ 71
Table 4-31: Reasonable Return submitted by the Petitioner for truing up of FY 2012-
13 ............................................................................................................................. 72
Table 4-32: Reasonable Return approved by the Commission for truing up of FY
2012-13 .................................................................................................................... 74
Table 4-33: Prior Period Income for FY 2012-13 as submitted by the Petitioner ...... 75
Table 4-34: Prior period income/expenses approved for FY 2012-13 ...................... 76
Table 4-35: Non Tariff Income as submitted by the Petitioner for truing up of FY
2012-13 .................................................................................................................... 77
Table 4-36: Non-tariff income approved for FY 2012-13 .......................................... 78
Table 4-37: Approved ARR for FY 2012-13 ............................................................. 78
Table 4-38: Revenue from sale of power for FY 2012-13 as submitted by TSECL .. 79
Table 4-39: Approved revenue from sale of power for FY 2012-13 .......................... 81
Table 4-40: Approved revenue subsidy from Government of Tripura ....................... 81
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page ix
November 2014
Table 4-41: Energy not sold or lost in the system for FY 2012-13 ............................ 82
Table 4-42: Approved receivables for the energy not sold or lost in the system for FY
2012-13 .................................................................................................................... 83
Table 4-43: Approved total revenue for FY 2012-13 ................................................ 84
Table 4-44: Approved revenue gap/surplus for FY 2012-13 ..................................... 85
Table 5-1: Category wise intra-State energy sales for FY 2013-14 as submitted by
TSECL ...................................................................................................................... 86
Table 5-2: Approved category-wise intra-State energy sales for FY 2013-14 .......... 87
Table 5-3: Own generation for FY 2013-14 as submitted by the Petitioner .............. 88
Table 5-4: Approved own generation for FY 2013-14 .............................................. 90
Table 5-5: Power Purchase for FY 2013-14 as submitted by the Petitioner ............. 91
Table 5-6: Approved Power Purchase for FY 2013-14 ............................................. 92
Table 5-7: Approved T&D loss for FY 2013-14 ........................................................ 94
Table 5-8: Energy Balance for FY 2013-14 as submitted by TSECL ....................... 94
Table 5-9: Approved energy balance for FY 2013-14 .............................................. 95
Table 5-10: Fuel cost submitted by TSECL for FY 2013-14 ..................................... 96
Table 5-11: Actual fuel cost for FY 2013-14 as submitted by TSECL ...................... 97
Table 5-12: Fuel purchase cost approved for FY 2013-14 ....................................... 98
Table 5-13: Actual power purchase cost for FY 2013-14 as submitted by TSECL ... 98
Table 5-14: Actual Transmission Charges and RLDC charges for FY 2013-14 as
submitted by TSECL ................................................................................................ 99
Table 5-15: Approved power purchase cost for FY 2013-14 .................................. 100
Table 5-16: O&M expenses for FY 2013-14 as submitted by the Petitioner ........... 101
Table 5-17: O&M expenses approved for FY 2013-14 ........................................... 103
Table 5-18: Depreciation claimed by the Petitioner for FY 2013-14 (Rs. Crore) .... 104
Table 5-19: Revised computation of depreciation for FY 2013-14 as submitted by
TSECL .................................................................................................................... 104
Table 5-20: Depreciation approved for FY 2013-14 ............................................... 105
Table 5-21: Opening loans for FY 2013-14 as submitted by TSECL ...................... 106
Table 5-22: Interest and finance charges for FY 2013-14 as submitted by TSECL 106
Table 5-23: Interest and Finance Charges approved for FY 2013-14 .................... 107
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page x
November 2014
Table 5-24: Interest on Working Capital as submitted by the Petitioner for FY 2013-
14 ........................................................................................................................... 108
Table 5-25: Interest on working capital approved for FY 2013-14 .......................... 109
Table 5-26: Reasonable Return submitted by the Petitioner for review of FY 2013-14
............................................................................................................................... 110
Table 5-27: Reasonable Return approved by the Commission for FY 2013-14 ..... 111
Table 5-28: Non Tariff Income submitted by the Petitioner for FY 2013-14............ 112
Table 5-29: Non Tariff Income submitted by the Petitioner for truing up of FY 2012-
13 ........................................................................................................................... 113
Table 5-30: Approved ARR for FY 2013-14 ........................................................... 113
Table: 5-31: Revenue from sale of power for FY 2013-14 as submitted by TSECL 114
Table 5-32: Approved revenue from sale of power for FY 2013-14 ........................ 116
Table 5-33: Approved revenue subsidy from Government of Tripura ..................... 117
Table 5-34: Energy not sold or lost in the system for FY 2012-13 .......................... 117
Table 5-35: Approved receivable for the energy not sold or lost in the system for FY
2013-14 .................................................................................................................. 118
Table 5-36: Approved total revenue for FY 2013-14 .............................................. 119
Table 5-37: Approved revenue gap/surplus for FY 2013-14 ................................... 119
Table 6-1: Energy Sales projected by TSECL for FY 2014-15 (MU) ...................... 121
Table 6-2: Category-wise number of consumers as submitted by TSECL ............. 122
Table 6-3: Consumer category-wise connected load as submitted by TSECL ....... 123
Table 6-4: Actual category-wise sales for TSECL in previous years ...................... 124
Table 6-5: Consumer category wise approved energy sales for FY 2014-15 ......... 130
Table 6-6: Installed capacity, COD and current status of TSECL’s generating stations
as submitted by TSECL .......................................................................................... 132
Table 6-7: Own generation projected by TSECL for FY 2014-15 ........................... 133
Table 6-8: Gross generation approved for FY 2014-15 .......................................... 135
Table 6-9: Power purchase in FY 2014-15 as projected by TSECL ....................... 137
Table 6-10: Approved power purchase for FY 2014-15 ......................................... 138
Table 6-11: Approved T&D loss for FY 2014-15 .................................................... 139
Table 6-12: Energy Balance for FY 2014-15 as submitted by TSECL ................... 140
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page xi
November 2014
Table 6-13: Revised Energy Balance for FY 2014-15 as submitted by TSECL ...... 141
Table 6-14: Approved Energy Balance for FY 2014-15 .......................................... 142
Table 6-15: Fuel cost projected by TSECL for FY 2014-15 .................................... 143
Table 6-16: Approved fuel purchase cost for FY 2014-15 ...................................... 144
Table 6-17: Power purchase cost for FY 2014-15 as projected by TSECL ............ 145
Table 6-18: Transmission and RLDC charges for FY 2014-15 ............................... 146
Table 6-19: Approved power purchase cost for FY 2014-15 .................................. 147
Table 6-20: O&M expenses for FY 2014-15 projected by the Petitioner ................ 148
Table 6-21: Employee expenses approved for FY 2014-15 ................................... 149
Table 6-22: R&M expenses approved for FY 2014-15 ........................................... 150
Table 6-23: A&G expenses approved for FY 2014-15 ........................................... 151
Table 6-24: Approved O&M expenses for FY 2014-15 .......................................... 151
Table 6-25: Depreciation for FY 2014-15 as submitted by the Petitioner in the
Petition ................................................................................................................... 152
Table 6-26: Revised computation of Depreciation for FY 2014-15 as submitted by
TSECL .................................................................................................................... 153
Table 6-27: Depreciation approved for FY 2014-15 ............................................... 154
Table 6-28: Interest and Finance Charges for FY 2014-15 as submitted by the
Petitioner ................................................................................................................ 154
Table 6-29: Interest and Finance Charges approved for FY 2014-15 .................... 157
Table 6-30: Interest on Working Capital for FY 2014-15 as submitted by the
Petitioner ................................................................................................................ 158
Table 6-31: Interest on working capital approved for FY 2014-15 .......................... 159
Table 6-32: Reasonable Return as submitted by the Petitioner for FY 2014-15 .... 159
Table 6-33: Reasonable Return approved by the Commission for FY 2014-15 ..... 160
Table 6-34: Non Tariff Income as submitted by the Petitioner for FY 2014-15 ....... 161
Table 6-35: Non Tariff Income approved by the Commission for FY 2014-15 ........ 161
Table 6-36: Approved ARR for FY 2014-15 ........................................................... 162
Table 6-37: Revenue from sale of power for FY 2014-15 based on submissions of
TSECL .................................................................................................................... 163
Table 6-38: Approved revenue from sale of power in FY 2014-15 at existing tariff 165
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page xii
November 2014
Table 6-39: Approved revenue gap/surplus for FY 2014-15 ................................... 165
Table 6-40: Consolidated revenue gap submitted by TSECL in Petition ................ 166
Tabe 6-41: Consolidated Gap/(Surplus) based on the submission of the Petitioner
............................................................................................................................... 167
Table 6-42: Approved consolidated revenue gap for FY 2014-15 .......................... 169
Table 8-1: Category wise tariffs proposed by TSECL............................................. 183
Table 8-2: Tariff proposed by TSECL for proposed new tariff category of Bulk
Domestic consumers .............................................................................................. 186
Table 8-3: Existing tariff rates ................................................................................. 186
Table 8-4: Approved miscellaneous and other charges for FY 2014-15 ................ 200
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page xiii
November 2014
ABBREVIATIONS
A&G Administrative and General
Act Electricity Act, 2003
AGBPP Assam Gas Based Power Plant
AGTPP Agartala Gas Turbine Power Plant
APTEL Appellate Tribunal for Electricity
ARR Aggregate Revenue Requirement
AT&C Aggregate Technical and Commercial
BGTPP Baramura Gas Thermal Power Plant
BPL Below Poverty Line
CAG Comptroller and Auditor General
CAGR Compounded Annual Growth Rate
Capex Capital Expenditure
CERC Central Electricity Regulatory Commission
CGS Central Generating Stations
Ckt. Km Circuit Kilometre
CPI Consumer Price Index
Cr. Crore
CWIP Capital Works in Progress
DHEP Doyang Hydro-Electric Project
DPR Detailed Project Report
FPPCA Fuel and Power Purchase Cost Adjustment
FY Financial Year
GAIL Gas Authority of India Limited
GFA Gross Fixed Assets
GHEP Gumti Hydro-Electric Project
GoT Government of Tripura
HEP Hydro-Electric Project
HSD High Speed Diesel
HT High Tension
IEX Indian Energy Exchange
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page xiv
November 2014
kcal kilo calorie
kV kilo Volt
LT Low Tension
MMSCM Million Metric Standard Cubic Metre
MoP Ministry of Power
MU Million Units
MW Mega Watt
NEEPCO North Eastern Electric Power Corporation Limited
NEP National Electricity Policy
NER North Eastern Region
NHPC National Hydro Power Corporation Limited
NTI Non-tariff Income
O&M Operation and Maintenance
ONGC Oil and Natural Gas Corporation
OTPC ONGC Tripura Power Company
PFC Power Finance Corporation
PGCIL PowerGrid Corporation of India Limited
PLF Plant Load Factor
PLR Prime Lending Rate
POSOCO Power System Operation Corporation Limited
R&M Repair and Maintenance
R-APDRP Restructured Accelerated Power Development and Reforms Programme
REC Rural Electrification Corporation
RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana
RGTPP Rokhia Gas Thermal Power Plant
RHEP Ranganadi Hydro-Electric Project
RLDC Regional Load Dispatch Centre
Rs. Rupees
SBI State Bank of India
SCM Standard Cubic Metre
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page xv
November 2014
SLM Straight Line Method
T&D Transmission and Distribution
TERC Tripura Electricity Regulatory Commission
TP Tariff Policy
TPP Thermal Power Plant
TSECL Tripura State Electricity Corporation Limited
WPI Wholesale Price Index
TRIPURA ELECTRICITY REGULATORY COMMISSION AT
AGARTALA
No. F. 24/TERC/382 Dated: November 22nd, 2014
Case No.: 1/2014
Before the Tripura Electricity Regulatory Commission
Bidyut Bhawan, Banamalipur, Bhutoria,
Agartala – 799001 (Tripura)
In the matter of……………….
Determination of ARR (Aggregate Revenue Requirement) and Truing up of ARR
w.e.f FY 2012-13 and tariff determination for FY 2014-15 as admissible under
TERC Regulations No. F.17/TERC/04 dated 11.01.2005, read with Chapter IV
(Tariff) of TERC Regulations No. F.17/TERC/2004/34 dated 11.01.2005 for supply
of electricity in the State of Tripura by the Tripura State Electricity Corporation
Limited (TSECL)
by
Tripura State Electricity Corporation Limited (TSECL) …………………
Petitioner
Bidyut Bhawan, North Banamalipur,
Agartala, Tripura, 799001
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 17
November 2014
O R D E R
The Commission, in exercise of the powers vested under Section 62(1) (d) read
with Section 64(3) (a) of the Electricity Act, 2003 and TERC Tariff Regulations,
2004, and all other powers conferred on the Tripura Electricity Regulatory
Commission after thorough examination of the Petition submitted by the Petitioner
(TSECL) and all documents and records as submitted and all oral and written
submissions made by the Petitioner during Public Hearing and all objections
submitted by the objectors, replies thereof from the Petitioner, and other
submissions made by the representatives presented and in consultation with the
State Advisory Committee or otherwise information received and after due
consideration of the consumers' interest and sustainability of the Licensee, the
Commission passes the Tariff Order and directives as detailed in the respective
Chapters and hereafter. The Tariff Order will be effective from November 1st, 2014
and remain valid until issuance of further Tariff Order.
1. TSECL shall submit the progress report within three months of issuance of this
Order showing present voltage-wise metering status of its network and
progress of TSECL in the direction of achieving metering of voltage-wise
distribution loss of its network.
2. TSECL shall submit the Petition for finalisation of tariff for sale to Manipur and
Mizoram before the Commission within two months of issuance of this Order.
3. TSECL shall submit complete Statement of Accounts duly audited by statutory
auditor (CAG) for all the years from FY 2009-10 to FY 2013-14 within three
months of issuance of this Order.
4. TSECL shall submit function-wise (Generation, Transmission and Distribution)
fixed assets and depreciation registers including asset-wise classification duly
audited within three months of issuance of this Order before the Commission.
5. TSECL shall submit report on upgradation of its billing system within two
months of issuance of this Order, wherein, TSECL should include the time-line
for completion of the compete Management Information System.
6. Within one month of issuance of this Tariff Order, TSECL shall submit the
latest status of arrears pending to be collected.
7. Within three months of issuance of this Order, TSECL shall submit a detailed
action plan and roadmap for reducing the T&D loss of its network.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 18
November 2014
8. TSECL shall prepare and submit its Capital Expenditure Plan for FY 2015-16
within three months of issuance of this Order.
9. Within two months of issuance of this Order, TSECL shall submit the AT&C
loss figures for all the years from FY 2009-10 to FY 2013-14 duly audited by
the Statutory Auditors.
10. By March 31st, 2015, TSECL shall submit a report on its roadmap for
unbundling of the Corporation.
11. Within four months of issuance of this Order, TSECL shall submit the Petition
for final truing up for all the years from FY 2009-10 to FY 2012-13 based on
the annual accounts of these years duly audited by Statutory Auditors (CAG).
12. TSECL is directed to submit within two months of issuance of this Order, a
report on status of metering of consumers and roadmap for achieveing 100%
consumer metering in the State of Tripura.
13. TSECL shall conduct an internal audit of its offices at different places and
submit the report of the same to the Commission by June 30th, 2015.
14. TSECL shall conduct an internal commercial audit of its generation,
transmission and distribution fuctions and submit the report of the same to the
Commission by June 30th, 2015.
15. The Aggregate Revenue Requirement (ARR) for FY 2014-15 for Tripura State
Electricity Corporation Limited is approved as Rs. 754.26 crore. Approved
ARR for FY 2012-13 after provisional truing up is Rs. 461.55 crore and
approved ARR in review of FY 2013-14 is Rs. 558.34 crore. The approved
revenue gap for FY 2012-13 and FY 2013-14 are Rs. 75.29 crore and Rs.
19.49 crore, respectively. The revenue surplus for FY 2014-15 is Rs. 15.65
crore. Further, the Commission had approved the revenue gap of Rs. 53.08
crore for FY 2012-13 in the previous Tariff Order. In view of the above, the
approved consolidated revenue gap for FY 2014-15, after adjusting the
revenue gaps for FY 2012-13 and FY 2013-14 is Rs. 26.05 crore. The
approved revenue from intra-State sales for FY 2014-15 at existing tariff of FY
2013-14 is Rs. 483.48 crore. Accordingly, the Commission approves 5.39%
increase in the retail supply tariffs for FY 2014-15. Further, the Government of
Tripura had provided subsidy in FY 2013-14, and hence, the subsidized tariff
rates approved by the Commission in the previous Tariff Order were applicable
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 19
November 2014
to the consumers of the State in FY 2013-14. The revenue at subsidized rates
of FY 2013-14 amounts to Rs. 443.48 crore. The non-subsidised tariffs
approved by the Commission for FY 2014-15 amounts to average increase of
0.84 Rs./kWh (i.e. average approximate 15%) over the subsidized tariffs of FY
2013-14. In ‘Annexure II’ of this this Tariff Order, the Commission has
indicated category wise non-subsidized and subsidized tariff rates for FY 2014-
15. The subsidized tariffs of FY 2014-15 amounts to average increase of 0.33
Rs./kWh over subsidized tariff rates of FY 2013-14.
The Tariff Schedule for various consumer categories/slabs and terms and
conditions are elaborated in Chapter 8 of the Tariff Order. The tariff will be
effective from November 1st, 2014 and will remain valid until issuance of further
Tariff Order. The Tariff Schedule applicable for FY 2014-15 is enclosed as
“Annexure I” to this Tariff Order.
This disposes off Case no. 1 / 2014.
Sd/-
N. Chakraborty
(Chairman, TERC)
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Tripura Electricity Regulatory Commission Page 20
November 2014
1 Background and Brief History
1.1 Contents of this Order
This Tariff Order is divided into eight chapters, as under:
1) The First Chapter (this Chapter) provides a background of the Petitioner, the
Petition, public hearing process, and the approach adopted for this Order.
2) The Second Chapter contains a summary of TSECL’s Petition for Truing-up
of FY 2012-13, Review of FY 2013-14, and determination of ARR and Tariff for
FY 2014-15.
3) The Third Chapter provides a brief account of the public hearing process,
including the objections raised by the stakeholder, TSECL’s response, and the
Commission’s views on the same.
4) The Fourth Chapter deals with the Truing up of ARR of FY 2012-13.
5) The Fifth Chapter deals with the Review of ARR of FY 2013-14.
6) The Sixth Chapter deals with determination of ARR for FY 2014-15.
7) The Seventh Chapter deals with the directives issued by the Commission in
previous Tariff Order and their compliance by the Petitioner.
8) The Eighth Chapter details the Tariff Philosophy and Tariff approved by the
Commission with analysis and annotations.
1.2 Background
The Tripura State Electricity Corporation Limited (hereinafter referred to as
‘TSECL’ or the ‘Petitioner’ or the ‘Utility’) filed its Petition on July 23rd, 2014, as per
Section 62 of the Electricity Act, 2003, read with the Tripura Electricity Regulatory
Commission (Tariff Regulations, 2004), Tripura Electricity Regulatory Commission
(Tariff Procedure) Regulations, 2004 and Tripura Electricity Regulatory
Commission (Conduct of Business) Regulations, 2004, for the truing up of FY
2012-13 based on the provisional annual accounts for FY 2012-13, Review of
Aggregate Revenue Requirement (ARR) for FY 2013-14 based on the provisional
annual accounts for FY 2013-14, and ARR and determination of Tariff for FY
2014-15. The Petitioner submitted its revised data for the Petition on August 12th,
2014.
1.3 Tripura State Electricity Corporation Limited (TSECL)
Tripura State Electricity Corporation Limited (TSECL) has been incorporated and
registered under the Companies Act, 1956 on June 9th, 2004 in compliance with
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 21
November 2014
the Memorandum of Understanding (MoU) signed between the Ministry of Power,
Government of India and Government of Tripura on August 28th, 2003. TSECL
has started its operations from January 1st, 2005 with the operational control of all
the assets related to Generation, Transmission, Distribution functions and its allied
activities in the State of Tripura.
1.4 Tripura Electricity Regulatory Commission
The Tripura Electricity Regulatory Commission (hereinafter referred to as “TERC”
or “Commission”) was created under the Electricity Act, 2003 (hereinafter referred
to as “Act”) vide the Government Notification No.F.1(17)/ Commr/Power/2003(P-1)
dated April 24th, 2004. The notification came in the Government of Tripura’s
Gazette (Extra–ordinary) on May 26th, 2004. Accordingly, the Tripura Electricity
Regulatory Commission was established on May 31st, 2004 as a statutory body
and as a one-person Commission under the Act. The Commission, a quasi-judicial
body, started functioning from the month of May, 2004 as the State Electricity
Regulatory Commission in Tripura with the responsibilities to discharge
multifarious functions defined in the Electricity Act, 2003.
1.4.1 Functions of the Commission
As per Section 86 of the Act, the main functions of the Commission are as follows:
1. Determination of tariff for generation, supply, transmission and wheeling of
electricity, wholesale ,bulk or retail, as the case may be, within the State;
2. Regulate electricity purchase and procurement process of distribution
licensees including the price at which electricity shall be procured from the
generation companies or licensees or from other sources through power
purchase agreements for supply of power within the State;
3. Facilitate intra–State transmission and wheeling of electricity;
4. Issuance of licenses to persons seeking to act as transmission licensees,
distribution licensees and electricity traders with respect their operations within
the State;
5. Promote co-generation and generation of electricity from renewable source of
energy by providing suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from such
sources, a percentage of the total consumption of electricity in the area of a
distribution licensee;
6. Adjudication upon the disputes between the licensees and generating
companies and to refer any dispute for arbitration;
7. Levying fees for the purposes of the Electricity Act, 2003;
8. Determination of specification of State Grid Code;
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9. Enforcement of standards with respect to quality, continuity and reliability of
service by Licensees;
10. Fixation of the trading margin in the intra-State trading of Electricity, if
considered necessary;
11. Discharge of other functions as may be assigned to it under the Act;
12. Advice the State Government on all or any of the following matters, such as:
Promotion of competition, efficiency and economy in activities of the
electricity industry in the State;
Promotion of investment in the electricity industry;
Re-organization and restructuring of the electricity industry in the State;
Matters concerning generation, transmission, distribution and trading of
electricity or any other matter referred to the State Commission by the
State Government;
Maintaining transparency and being guided by the National Electricity
Policy (NEP), National Electricity Plan and Tariff Policy (TP).
1.4.2 Regulations notified by the Commission
To discharge its functions as given in Section 86 of the Act, the Commission has
notified the following Regulations:
1. Electricity Supply Code Regulations, 2011
2. Miscellaneous provisions relating to Petitions Fees Regulations, 2011
3. Fuel and Power Purchase Price Adjustment Formula Regulations, 2011
4. State Electricity Grid Code Regulations, 2010
5. Terms and Condition of Open Access Regulations, 2010
6. Renewable Purchase Obligation and its compliance Regulations, 2009
7. Demand Side Management Regulations, 2010
8. Procurement of Energy from Renewable Sources Regulations, 2010
9. Compliance Audit Regulations, 2010
10. Conduct of Business Regulations, 2004
11. Standard of Performance Regulations, 2004
12. Regulations for Tariff Procedure, 2004
13. Electricity Supply Code Regulations, 2004
14. Tariff Procedure Regulations, 2004
15. Consumer Grievance Redressal Forum & Appointment of Ombudsman
Regulations, 2005
16. Grant of Licensing and Terms and Conditions of Licence Regulations, 2005
17. Terms and Conditions of Consultants Regulations, 2005
18. Miscellaneous Provisions relating to Petitions Fees Regulations, 2005
19. Miscellaneous Provisions Regulations, 2005
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November 2014
20. Regulation on Co-Generation and Generation of Electricity from Renewable
Source of Energy, Regulations, 2009
1.5 Tariff Orders issued by the Commission earlier
The chronology of the filing of the Tariff Petitions and issuance of the Tariff Orders
from FY 2005- 06, are listed below:
1. TSECL filed its first Tariff Petition for FY 2005-06 in accordance with the Tariff
Regulations, 2004. The Commission, in exercise of the powers vested under
Sections 61, 62 and 64 of the Act carried out a detailed review of the Petition
and issued its first Tariff Order on June 24th, 2005.
2. TSECL filed its second Tariff Petition for FY 2006-07 on August 4th, 2006 in
accordance with Section 62 of the Act and Tariff Regulations, 2004. The
Commission, in exercise of the powers vested under Sections 61, 62 and 64 of
the Act issued its second Tariff Order on September 14th, 2006.
3. In FY 2010-11, TSECL submitted a Petition for Fuel & Power Purchase Cost
Adjustment (FPPCA) for approval of adjustment of cost against increase of fuel
(gas) cost for its own generating stations, namely, Rokhia Gas Thermal Power
Plant (RGTPP) and Baramura Gas Thermal Power Plant (BGTPP), and cost
incurred for procurement of power from the Central Generating Stations
(CGS). The Commission, after due examination of the Petition and considering
all the aspects of this matter, issued the FPPCA Order on September 13th,
2010. The Commission subsequently issued the amendment to the Order on
September 22nd, 2010 after allowing subsidy to some categories of
consumers, wherein the Commission allowed Rs. 1.40/unit as FPPCA charge.
4. TSECL did not file any ARR and Tariff Petition from FY 2007-08 to FY 2011-12
despite several reminders from time to time by the Commission. Non-
finalization of the Annual Accounts from FY 2007-08 to FY 2011-12 was the
main reason for non-submission of the Tariff Petitions. Therefore, the actual
financial health of the Petitioner could not be judged prior to FY 2011-12.
5. Subsequently, after a hiatus of 6 years from the issuance of the second Tariff
Order of the Commission, the Petitioner filed its third ARR and Tariff Petition
on January 20th, 2012 (Case No. 01 of 2012) for approval of ARR and tariff for
FY 2012-13 along with the Truing-up of ARR for the period from FY 2007-08 to
FY 2010-11. As highlighted above, in absence of the audited Annual Accounts
for FY 2005-06 and FY 2006-07, the truing-up exercise could not be completed
previously. The Commission, according to Clause 3 of the Tariff Regulations,
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Tripura Electricity Regulatory Commission Page 24
November 2014
2004 and Regulation 25(1) of the TERC (Conduct of Business) Regulations,
2004, also undertook the suo-motu proceedings for truing-up of FY 2005-06
and FY 2006-07 and included the same in the tariff proceedings for FY 2012-
13. On March 28th, 2012, the Commission issued the third Tariff Order for
TSECL, approving the ARR and tariff for FY 2012-13 along with truing up for
the period from FY 2005-06 to FY 2010-11.
6. The Petitioner filed its fourth ARR and tariff Petition on March 15th, 2013, for
approval of ARR and tariff for FY 2013-14 along with the truing-up of the ARR
of FY 2011-12 and Review of ARR for FY 2012-13. The Commission, in
exercise of the powers vested under Sections 61, 62 and 64 of the Act and all
other powers enabling it in this regard and after taking into consideration the
submissions made by TSECL, the objections by various stakeholders,
response of TSECL, issues raised during the Public Hearing and all other
relevant material, issued the fourth Tariff Order for TSECL on June 25th, 2013.
1.6 Admission of current Petition and Public Hearing Process
1.6.1 Admission hearing and admission of the current Petition
TSECL submitted the Petition for Truing up for FY 2012-13, Review of ARR of FY
2013-14 and determination of the ARR and Tariff for FY 2014-15 on July 23rd,
2014. On preliminary scrutiny of the Petition, the Commission observed several
discrepancies and gaps in the Petition filed by TSECL. The Commission observed
that as per the TERC Tariff Regulations, 2004 and TERC Tariff Procedure
Regulations, 2004, significant data and information that is important to process the
Tariff Petition was not submitted by the Petitioner. Hence, the Commission sent
preliminary data gaps to TSECL on July 31st, 2014, citing several discrepancies
and gaps in the Petition and supporting information. The Commission directed the
Petitioner to revise its data in the Petition in accordance with the TERC Tariff
Regulations, 2004. Meanwhile a preliminary Admission Hearing was held on
August 8th, 2014, wherein the Commission did not admit the Petition of TSECL in
view of several discrepancies and gaps in the Petition and absence of important
information supporting the Petition as mentioned above. Subsequently, the
Petitioner submitted revised data for Petition on August 12th, 2014 along with
revised revenue gap and the retail Tariff Proposal for FY 2014-15.
On verification of the revised data, the Commission found that there still remained
some gaps. Further, the Petitioner was also unable to produce all the supporting
documents along with the Petition as required by the Commission. In view of the
same, the Commission sent additional data gaps vide letter dated August 23rd,
2014, wherein the Commission mentioned the incompleteness in the Petition and
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 25
November 2014
absence of necessary supporting documents. The Commission directed the
Petitioner to remove such incompleteness and discrepancies and submit all
supporting documents. However, the Petitioner was unable to submit the
complete information sought by the Commission in the additional data gaps.
Meanwhile, the Commission felt that there was already a delay of several months
in the procedure of determination of Tariff for FY 2014-15, and any further delay in
the tariff determination should not be permitted. In view of the same, the
Commission scheduled the Admission Hearing on September 5th, 2014, wherein
the Commission provisionally admitted the ARR and Tariff Petition of TSECL as
Case No. 1 of 2014, subject to the condition that if the Petitioner does not submit
all the information already sought within two weeks, then this provisional
admission of the Petition will be treated as final admission and the information as
required will be considered on lower side on the basis of data of previous years.
1.6.2 Public Hearing process
After admission of the ARR and Tariff Petition, the Commission, in accordance
with Section 64 of the Act and Clause 10 of the TERC (Tariff Procedure)
Regulations, 2004, directed TSECL to publish its Tariff Petition in abridged form in
the newspapers and on their website. Accordingly, the abridged form of the
Petition was published on September 9th, 2014 and September 10th, 2014 in the
leading newspapers in Tripura. The Petitioner also posted the public notice and
the Petition for truing up for FY 2012-13, review of FY 2013-14 and determination
of ARR and Tariff for FY 2014-15 on their website (www.tsecl.com). The
publication invited the attention of all interested parties, stakeholders including
members of the public for their objections/suggestions on the said Petition of
TSECL on or before October 5th, 2014.
The following stakeholder filed his objections on the Petition of TSECL:
Table 1-1: List of consumers who filed objections/suggestions in writing on the ARR and Tariff Petition of TSECL
Sl. No. Name and Address
1. Professor Mihir Kanti Deb, North UCO Bank, TRTC Branch, Thakur Pally Road, Krishnanagar, Agartala.
The Commission examined the objections received from the objector and fixed the
date for public hearing as October 20th, 2014. The Commission invited the
objector to take part in the Public Hearing process and present his views in person
Tariff Order for TSECL for FY 2014-15
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November 2014
before the Commission. The Commission, subsequently published the Notice for
Public Hearing in the following newspapers on October 14th, 2014:
Dainik Sambad (Bengali)
Dainik Desher Katha (Bengali)
Tripura Darpan (Bengali)
Syandan Patrika Syandan (Bengali)
Triputa Times (English)
The public hearing was conducted at the Commission’s office in Agartala at the
following address on October 20th, 2014:
Bidyut Bhawan,
North Banamalipur,
Agartala, Tripura - 799001
In the Public Hearing, no objector appeared to submit his objections/suggestions
in person. The objections and suggestions received from the sole objector on the
ARR and Tariff Petition of TSECL have been dealt separately in Chapter 3.
1.7 Interaction with the Petitioner
As mentioned earlier, the Petitioner submitted its Petition on July 23rd, 2014, and
submitted the revised data for the Petition on August 12th, 2014. The Commission
conducted detailed scrutiny of the Petition and observed several deficiencies in
the same.
Accordingly, letters were issued to the Petitioner from time to time detailing the
deficiencies and gaps in the Petition and directing TSECL to remove the
deficiencies and submit additional information/clarifications. The Petitioner
submitted its replies to the queries of the Commission from time to time. The
Commission interacted regularly with the Petitioner to seek clarifications and
justifications on various issues essential for the analysis of the Petition. The
Commission also conducted technical validation sessions with the Petitioner
during which various issues related to the Tariff Petition were discussed.
Subsequently, the Petitioner submitted replies to the issues raised in these
sessions.
The communication between the Commission and TSECL is summarised in the
following Table:
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November 2014
Table 1-2: List of Correspondence between the Commission and TSECL
Sl. No.
Date Issuer Letter No. Subject
1. July 23rd, 2014
TSECL F.AGM/C&SO/TC/101/1820-23
Submission of Petition for truing up for FY 2012-13, review of FY 2013-14 and ARR and Tariff for FY 2014-15. Along with the Petition, TSECL submitted some supporting information including provisional annual accounts for FY 2012-13
2. July 26th, 2014
TERC F.24/TERC/09/156-57
The Commission directed TSECL to submit the additional information on the Petition.
3. July 31st, 2014
TERC No.F.24/TERC/09/168-69
The Commission issued preliminary data gaps on the Petition of TSECL dated July 23rd, 2014
4. August 1st, 2013
TERC No.F.24/TERC/09/170-71
The Commission directed TSECL to attend the preliminary Admission Hearing to be held on August 8th, 2014
5. August 1st, 2013
TERC No.F.24/TERC/09/173-74
The Commission sent reminder to TSECL for submission of replies to additional information and preliminary data gaps sent by the Commission as mentioned earlier.
6. August 12th, 2013
TSECL AGM/C&SO/TC/101/2183-84
TSECL submitted revised data for the Petition, and along with the same, it submitted replies to the additional information asked for by the Commission and preliminary data gaps sent by the Commission as mentioned above. However, the Commission still found deficiencies and incompleteness in the submissions of the Petitioner.
7. August 14th, 2013
TERC F.24/TERC/09/187-90
TERC sent reminder to TSECL for submission of complete additional data.
8. August 23rd, 2013
TERC F.24/TERC/101/228-31
TERC sent additional data gaps on the revised data submitted by TSECL and additional information submitted by
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 28
November 2014
Sl. No.
Date Issuer Letter No. Subject
TSECL along with the same.
9. September 2nd, 2013
TERC F.24/TERC/09/241-44
TERC directed TSECL to attend admission hearing to be held on September 5th, 2014.
10. September 3rd, 2013
TSECL e-mail TSECL submitted detailed workings of the computation of ARR and Tariff in MS Excel format. Along with the same, TSECL submitted some of the additional information sought by the Commission as mentioned above.
11. September 18th, 2013
TSECL F.13/70/TSECL/FIN/2014/20133-35
TSECL submitted provisional Annual accounts for FY 2013-14. Along with the same, TSECL also submitted the revised provisional annual accounts for FY 2012-13.
1.8 Approach of this Order
1.8.1 Truing-up for FY 2012-13
The Petitioner has submitted the Truing-up Petition for FY 2012-13 based on
provisional annual accounts for FY 2012-13. The Petitioner informed the
Commission that the statutory audit of the accounts for FY 2012-13 was under
process and the same would take time to finalize. The Commission observed that
the tariff determination process for FY 2014-15 had already been delayed by
several months and waiting for finalization of the statutory audited accounts for FY
2012-13 would delay the tariff determination process further. In view of the same,
the Commission decided to undertake the Truing-up exercise for FY 2012-13
based on the provisional annual accounts of FY 2012-13 submitted by the
Petitioner and may re-visit the approvals in the Truing-up, when the statutory
audited accounts for FY 2012-13 are available.
1.8.2 Review for FY 2013-14
The Commission started the review of ARR for FY 2013-14 based on the
information furnished by TSECL and prudence check of the same. However,
subsequently, TSECL made available the provisional annual accounts for FY
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Tripura Electricity Regulatory Commission Page 29
November 2014
2013-14. Therefore, the review exercise for FY 2013-14 has been conducted
based on the provisional annual accounts of FY 2013-14.
1.8.3 ARR and Tariff for FY 2014-15
Determination of ARR for FY 2014-15 has been based on provisions of the Tariff
Regulations, 2004.
1. Own generation of TSECL has been approved based on the analysis of plant-
wise actual generation in previous years and considering other factors such as
age of the Units of the plants as well as plant specific issues submitted by the
Petitioner.
2. Fuel purchase cost has been approved based on the approved generation and
actual per unit fuel cost of incurred by TSECL in FY 2013-14 and considering
the gas price increase approved by the Government of India from November,
2014.
3. Power purchase cost has been approved based on the power purchase
quantum approved by the Commission for FY 2014-15 and the actual power
purchase rate in FY 2013-14. For power purchase from new generating
station, OTPC Palatana, the Commission has approved the power purchase
cost based on the Order of CERC on approval of provisional tariff for the plant.
Further, for the power purchase from gas based thermal power stations,
namely, Assam Gas Based Power Project (AGBPP), Agartala Gas Turbine
Power Plant (AGTPP) and OTPC Palatana, the Commission has computed
energy charges based on the gas price increase approved by the Government
of India from November, 2014. The Transmission and RLDC charges have
been approved considering the point of connection data submitted by the
Petitioner and considering the power purchase quantum approved by the
Commission.
4. Intra-State and inter-State energy sales have been approved based on the
category-wise actual trends of energy sales observed in the previous years.
5. Operation and Maintenance (O&M) expenses have been approved based on
the Wholesale Price Index (WPI) and Consumer Price Index (CPI).
6. In the absence of Fixed Asset and Depreciation Register, Depreciation has
been provisionally approved by the Commission based on the submission of
the Petitioner regarding Gross Fixed Assets and Depreciation.
7. Interest and finance charges have been approved considering the actual
repayment obligation of the Petitioner.
8. Non-tariff income has been approved based on the actual non-tariff income for
FY 2013-14.
9. Other expenses such as reasonable return, interest on working capital have
been approved as per the norms.
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November 2014
1.9 State Advisory Committee
The tariff proposal of TSECL was placed before the State Advisory Committee
(SAC) in its meeting held on September 27th, 2014 at the Commission’s Office.
The Committee members were briefed on the Truing-up Petition for FY 2012-13,
Review of FY 2013-14 and ARR and Tariff Proposal for FY 2014-15. The SAC
members also pointed out a few anomalies in the Tariff Schedule and desired that
the Commission should verify all the elements of the ARR before issuing the Tariff
Order for FY 2014-15. All the members raised their apprehensions on enormous
tariff increase required based on the submissions of the Petitioner and requested
the Commission to look into the reasonableness of the same. Thus, the
Commission has taken all the necessary steps to ensure that the due process, as
contemplated under the Act and Regulations framed by the Commission are
followed and adequate opportunity given to all stakeholders in presenting their
views on the Tariff Petition submitted by TSECL.
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November 2014
2 Summary of true up for FY 2012-13, Review for FY
2013-14 and ARR for FY 2014-15
2.1 True up for FY 2012-13
The summary of Aggregate Revenue Requirement (ARR) approved in the
previous Tariff Order dated June 25th, 2013 and now claimed by TSECL in the
Truing-up for FY 2012-13 is shown in the table below:
Table 2-1: ARR for FY 2012-13 approved in the Tariff Order dated June 25th, 2013 and claimed by TSECL in truing up for FY 2012-13
(Rs. Crore)
Particulars
Approved in
Review Order
for FY 2012-13
Petitioner’s
submission for
truing up of FY
2012-13
Fuel cost 184.61 181.82
Power purchase cost 168.02 173.93
O&M expense 127.59 126.35
Depreciation 24.31 19.85
Interest on working capital 0.00 11.91
Interest and finance charges 0.34 3.21
Reasonable Return 16.52 67.81
Aggregate Revenue Requirement (ARR) 521.39 584.87
Less: non-tariff income 42.01 40.26
Less: prior period income 0.00 0.90
Net Aggregate Revenue Requirement 479.39 543.71
Less: Revenue from sale of power 386.31 316.80
Less: Revenue subsidy from GoT 40.00 40.00
Revenue Gap/(Surplus) 53.08 186.92
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2.2 Review of ARR for FY 2013-14
The summary of ARR approved for FY 2013-14 in the previous Tariff Order and
now claimed by the Petitioner in Review of ARR for FY 2013-14, is shown in the
table below:
Table 2-2: ARR for FY 2013-14 approved in the Tariff Order dated June 25th, 2013 and claimed by TSECL in Review of FY 2013-14
(Rs. Crore)
Particulars Approved in Order
dated 25.06.2013
Petitioner’s
submission for
review of FY
2013-14
Fuel cost 187.98 176.65
Power purchase cost 224.65 200.57
O&M expense 135.25 138.41
Depreciation 24.31 21.55
Interest on working capital 0.00 10.36
Interest and finance charges 0.34 16.62
Reasonable Return 16.52 30.69
Aggregate Revenue Requirement
(ARR) 589.05 594.85
Less: non-tariff income 42.01 41.20
Net Aggregate Revenue
Requirement 547.04 553.65
Revenue from sale of Power 561.03 424.62
Revenue subsidy from GoT - 40.00
Revenue Gap/(Surplus) (13.99) 89.03
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November 2014
2.3 ARR for FY 2014-15
The summary of ARR proposed for FY 2014-15 by TSECL is shown in the table
given below:
Table 2-3: ARR for FY 2014-15 proposed by TSECL
(Rs. Crore)
Particulars
Petitioner’s
submission for
FY 2014-15
Fuel cost 212.20
Power purchase cost 339.80
O&M expense 163.90
Depreciation 22.06
Interest on working capital 12.99
Interest and finance charges 16.02
Reasonable Return 31.14
Aggregate Revenue Requirement (ARR) 798.09
Less: non-tariff income 41.20
Net Aggregate Revenue Requirement 756.89
Revenue from sale of power 707.63
Revenue Gap/(Surplus) 49.26
2.4 Prayers of TSECL
TSECL has prayed to the Commission to:
a) Admit the Petition;
b) Examine the proposal submitted by the Petitioner for a favourable dispensation
as detailed in the Petition;
c) Consider the submissions of the Petitioner and allow the True-up for FY 2012-
13, revised estimate for FY 2013-14 and approve the tariff for FY 2014-15 as
proposed in the Petition;
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November 2014
d) Pass suitable Orders for implementation of the tariff proposals for FY 2014-15
for making it applicable from FY 2014-15 onwards;
e) Approve the terms and conditions of tariff and various other matters as
proposed in the Petition and the proposed changes therein;
f) Condone any inadvertent omissions/ errors/ shortcomings and permit TSECL
to add/ change/modify/alter its filing and make further submissions as may be
required at a future date;
g) Pass such Orders as the Commission may deem fit and proper, keeping in
view the facts and circumstances of the case.
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November 2014
3 Objections raised by the objector, TSECL’s response
and the Commission’s views
In response to the public notice of TSECL inviting objections/suggestions of the
stakeholders on the Petition, Professor Mihir Kanti Deb filed his objections and
suggestions in writing. The objections /suggestions of the objector, the responses
and submissions of TSECL thereof along with the views of the Commission are
given below. Submissions and responses, pertaining to specific and detailed
aspects of tariff, have been taken into account in the formulation of equitable tariff,
balancing the interests of stakeholders.
Objection 1: Projected Sales
Professor Mihir Deb submitted that TSECL has exaggerated the projected sales
for some categories of consumers such as Domestic category. Based on the data
of number of consumers submitted by TSECL in its Petition, Professor Deb
submitted that despite the number of consumers of TSECL increasing at the rate
of less than 10% annually in last few years, TSECL has assumed growth rate of
25% in sales to Domestic category. Professor Deb further submitted that in view
of the above, the actual sales for FY 2014-15 shall be lesser than the sales
estimation of 855.14 MU submitted by the Petitioner and as a result, the ARR of
TSECL shall be lower than that projected by the Petitioner on account of
requirement of lesser power purchase and own generation.
Response of the Petitioner:
In reply to the aforementioned objection, TSECL submitted that the high growth of
consumers (as compared to the previous years) is due to the following reasons:
a. Rapid addition of consumers due to ongoing rural electrification process.
TSECL is undertaking rural electrification in the State. These capital projects
will cause addition of consumer in large numbers. Considering the combined
effect of normal consumer growth and rural electrification, the higher growth
rate is proposed.
b. Since, the number of consumers is lower, addition of about 20,000 consumers
shows that there is higher growth rate.
c. Sales growth is also in line with consumer growth and additionally it is
assumed that due to more availability of energy, TSECL will be able to supply
for longer duration and hence, the per capita consumption of domestic
consumers will increase.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 36
November 2014
Commission’s view:
Considering the actual rate of growth in number of consumers and sales in
previous years, the Commission agrees with the objector that the energy sales of
855.14 MU projected by the Petitioner is on the higher side.
As regards the contention of the Petitioner that rapid addition of the consumers is
due to rapid ongoing rural electrification process, the Commission observes that
based on the data submitted by TSECL in its Petition, it has completed 92.89% of
rural electrification in the State by FY 2012-13 from 57.20% electrification in FY
2009-10. However, the sales to the domestic category has increased at CAGR of
10% in the last 5 years. Further, from the submission of the Petitioner that it has
already completed 92.89% rural electrification in the State, it implies that there is
limited scope for increase in rural electrification in the future.
Further, as against the Petitioner’s contention regarding the increase in number of
consumers by 20000, the Petitioner has submitted increase of more than 83000
consumers, including increase of more than 71000 Domestic consumers in FY
2014-15 as compared to actual number of consumers in FY 2013-14.
In view of the above, in the Tariff Order, the Commission has estimated sales for
various consumer categories for FY 2014-15 based on the category-wise actual
growth rate in energy sales in previous years. Accordingly, the Commission’s
estimation of energy sales in FY 2014-15 is significantly lower than the projection
of energy sales of FY 2014-15 submitted by TSECL. The impact of the same has
been reflected in the higher energy availability for sale through trading/exchanges.
Objection 2: GoT Subsidy
Professor Mihir Deb submitted that while showing the revenue gap in Table 70
(Page No. 67), TSECL has not shown the subsidy of Government of Tripura (GoT)
of Rs. 40.00 Crore, although the same has been shown in Table 69 (Page No.
67). Professor Deb submitted that inclusion of subsidy of GoT would reduce the
Gap for FY 2014-15 and may also result in surplus.
Response of the Petitioner:
TSECL submitted that it has clarified the issue of consideration of subsidy as
follows in Para 6.2.1 of the Petition:
“The gap at proposed tariff is calculated by considering the revenue from tariffs
without subsidy. Hence, Govt subsidy for FY 2014-15 is not considered.”
The Petitioner submitted that such submission means that the revenue from
proposed tariff in Table 70 of the Petition includes the Govt. Subsidy if received
from the Govt.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 37
November 2014
Commission’s View:
The Commission observes that for computing revenue gap in Table 69 of the
Petition and resultant increase in tariff, the Petitioner has considered revenue
subsidy of Rs. 40.00 crore from GoT and has accordingly, computed the revenue
for FY 2014-15 at existing tariff at existing subsidized rates. However, to remove
the discrepancies and bring more clarity in the process of tariff determination, the
Commission has determined the gap for FY 2014-15 by considering revenue for
FY 2014-15 at existing tariff by considering non-subsidized existing rates, and
accordingly has not considered subsidy from GoT. In Annexure-II of this Order,
the Commission has mentioned both, subsidised and non-subsidised tariff rates,
for all the consumer categories. Therefore, if revenue subsidy is provided by the
GoT to TSECL, as done in FY 2013-14, the subsidized tariffs shall be applicable
to the consumers.
Objection 3: Billing Cycle
Professor Mihir Kanti Deb submitted that in Para 6.4.1 of the Petition, TSECL has
proposed to spread the billing cycle in 3 quarters of the year. Professor Deb
submitted that if spreading of billing cycle in “3 quarters of the year” means that
bills will be raised once in four months, the consumers will be required to pay four
month’s electricity bills at a time, which will cause real hardship for the consumers.
Professor Deb requested the Commission not to agree to such proposal.
Response of the Petitioner:
TSECL submitted that it has proposed longer billing cycle in order to complete the
meter reading, billing and distribution cycle of the consumers. This is mainly due
to sparsely populated areas of the State. Longer billing cycle is essential as
TSECL is constrained by resources. Allocating adequate time for billing will
ensure reduction in “average” or “flat” billing cases and consumers will be billed on
actual consumption. Further, it is in the best interest of the utility and the
consumers to have revenue certainty and billing based on actual meter reading.
However, any decision taken by the Commission is acceptable in this regard.
Commission’s view:
The Commission observed that spreading the billing cycle to more than one
month would reduce the effort of TSECL towards billing and collection. However,
such implementation requires digital meters capable of storing the data of month-
wise consumption of the consumers since, in some categories there are different
tariffs for different monthly consumption slabs. The Commission has recognized
that billing of the consumers in the State is still done by analog meters also.
Further, the spreading of the billing cycle to four months will adversely affect the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 38
November 2014
cash flows of TSECL, and will also burden the consumers with combined bills for
four months, which may cause hardship. Hence, TSECL's proposal to spread the
billing cycle over four months is not approved by the Commission.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 39
November 2014
4 Truing up for FY 2012-13
The Commission had approved the Aggregate Revenue Requirement (ARR) of
TSECL for FY 2012-13 in the Tariff Order dated March 28th, 2012. The
Commission had reviewed the same in its previous Tariff Order dated June 25th,
2013. The TERC Tariff Regulations, 2004 provide for truing up of all the
parameters of ARR at the end of each year based on the audited accounts and
prudence check by the Commission. Since, the Accounts of TSECL for FY 2012-
13, duly audited by the Statutory Auditors, have not yet been made ready by the
Petitioner, and considering the fact that the tariff proceedings for FY 2014-15 have
already been delayed by several months, the Commission has conducted the
truing up for ARR for FY 2012-13 based on the provisional annual accounts of
TSECL for FY 2012-13.
4.1 Energy Sales
Petitioner’s submissions
The Petitioner has submitted the category-wise actual energy sales for FY 2012-
13, as shown in the Table below:
Table 4-1: Category wise intra-State sales submitted by TSECL for FY 2012-13
(MU)
Consumer Category Energy Sales
Kutir Jyoti 17.62
Domestic 347.86
Commercial 67.18
Industries (LT & HT) 37.99
Bulk Supply 79.18
Tea, coffee & rubber garden 0.67
Public Utility (Water works, Irrigation & Lighting) 132.55
Special Public Utility 0.00
Total Sales (within State) 683.05
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 40
November 2014
Vide its submissions dated September 3rd, 2014, the Petitioner submitted more
detailed data of actual category-wise sales for FY 2012-13, as shown below:
Table 4-2: Category wise intra-State sales submitted by TSECL for FY 2012-13 (revised submission)
(MU)
Consumer Category Energy Sales
Kutir Jyoti 17.62
Domestic 347.86
Commercial 67.18
Industries (LT & HT) 37.99
Bulk Supply 79.18
Tea, coffee & rubber garden 0.67
Public Water Works 62.41
Public Lighting 31.52
Irrigation and Water 36.40
Special Public Utility 2.22
Total (within State) 683.05
Commission’s analysis
The Commission had approved intra-State energy sales of 697.50 MU for TSECL
for FY 2012-13 in its Review Order dated June 25th, 2013. The actual intra-State
energy sales of TSECL are 683.05 MU, which is marginally lower than the intra-
State energy sales approved in the previous Tariff Order. The Commission
approves the actual intra-State energy sales of 683.05 MU in the truing up for FY
2012-13, as shown below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 41
November 2014
Table 4-3: Approved category-wise intra-State energy sales for FY 2012-13
(MU)
Category
Approved in
Review Order
dated
25.06.2013
Petitioner’s
submission
(actual)
Approved in
the truing-up
for FY 2012-13
Kutir Jyoti 16.47 17.62 17.62
Domestic 356.73 347.86 347.86
Commercial 68.60 67.18 67.18
Industrial (LT & HT) 38.79 37.99 37.99
Bulk Supply 87.23 79.18 79.18
Tea, Coffee & rubber garden 0.56 0.67 0.67
Irrigation 37.18 36.40 36.40
Public Water Works 63.73 62.41 62.41
Public Lighting 26.37 31.52 31.52
Special Public Utility 1.84 2.22 2.22
Total intra-State sale 697.50 683.05 683.05
4.2 Own Generation
Petitioner’s submission
TSECL submitted that during FY 2012-13 the plants have performed better than
expectation and TSECL's own generation has been higher than the generation
quantum approved by the Commission in the previous Tariff Order.
The Petitioner submitted that the actual gross generation, auxiliary consumption
and net generation for FY 2012-13 have been 800.74 MU, 7.89 MU and 792.85
MU, respectively. The data of installed capacity, gross and net generation,
excluding the diesel generating station, submitted by TSECL is as shown in the
Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 42
November 2014
Table 4-4: Plant-wise own generation submitted by TSECL for truing up of FY 2012-13
Particulars Unit Petitioner’s
submission
RGTPP
Installed Capacity MW 74.00
De-rated Capacity MW 74.00
Plant Load Factor % 63.52%*
Gross Generation MU 411.76
Auxiliary Consumption % 1.00%
Auxiliary Consumption MU 4.12
Net Generation MU 407.64
BGTPP
Installed Capacity MW 42.00
De-rated Capacity MW 42.00
Plant Load Factor % 95.19%*
Gross Generation MU 350.23
Auxiliary Consumption % 1.00%
Auxiliary Consumption MU 3.50
Net Generation MU 346.73
GHEP
Installed Capacity MW 15.00
De-rated Capacity MW 12.00
Plant Load Factor % 42.81%*
Gross Generation MU 38.75
Auxiliary Consumption % 0.70%
Auxiliary Consumption MU 0.27
Net Generation MU 38.48
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 43
November 2014
Particulars Unit Petitioner’s
submission
Total Own Generation
Installed Capacity MW 131.00
De-rated Capacity MW 128.00
Gross Generation MU 800.74*
Auxiliary Consumption MU 7.89
Net Generation MU 792.85
Note: *The Petitioner has made some errors in computation of PLF and gross generation, which have been
corrected by the Commission
Commission’s analysis
The Commission observes that the actual energy generation from the Petitioner’s
own generating stations has been higher than the own generation of 751.04 MU
approved by the Commission in the Tariff Order dated June 25th, 2013. The net
generation from Rokhia Gas Thermal Power Plant (RGTPP) and Baramura Gas
Thermal Power Plant (BGTPP) was 407.64 MU and 346.73 MU, respectively,
which are higher than the net generation of 378.65 MU and 326.70 MU,
respectively, approved by the Commission for the said plants in the previous Tariff
Order. However, the Generation from the Gumti Hydro Electric Power (GHEP) has
been 38.48 MU, which is lower than 44.39 MU approved by the Commission in the
review for FY 2012-13 in the previous Tariff Order.
Considering the fact that the overall generation of TSECL’s own generating
stations has been significantly higher than the own generation approved by the
Commission in the previous Tariff Order, the Commission approves the actual
generation achieved by TSECL FY 2012-13 for truing up.
The Commission approves the actual gross generation of 800.74 MU, auxiliary
consumption of 7.89 MU and net generation of 792.85 MU, as shown in the
following Table.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 44
November 2014
Table 4-5: Approved generation from TSECL’s own generating stations for FY 2012-13
Particulars Unit
Approved in
Review Order
dated
25.06.2013
Petitioner’s
submission
(actual)
Approved in
truing-up for
FY 2012-13
RGTPP
Installed Capacity MW 74.00 74.00 74.00
De-rated Capacity MW 74.00 74.00 74.00
Plant Load Factor % 59.00% 63.52% 63.52%
Gross Generation MU 382.48 411.76 411.76
Auxiliary Consumption % 1.00% 1.00% 1.00%
Auxiliary Consumption MU 3.82 4.12 4.12
Net Generation MU 378.65 407.64 407.64
BGTPP
Installed Capacity MW 42.00 42.00 42.00
De-rated Capacity MW 42.00 42.00 42.00
Plant Load Factor % 89.69% 95.19% 95.19%
Gross Generation MU 330.00 350.23 350.23
Auxiliary Consumption % 1.00% 1.00% 1.00%
Auxiliary Consumption MU 3.30 3.50 3.50
Net Generation MU 326.70 346.73 346.73
GHEP
Installed Capacity MW 15.00 15.00 15.00
De-rated Capacity MW 12.00 12.00 12.00
Plant Load Factor % 42.81% 42.81% 42.81%
Gross Generation MU 45.00 38.75 38.75
Auxiliary Consumption % 0.70% 0.70% 0.70%
Auxiliary Consumption MU 0.32 0.27 0.27
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 45
November 2014
Particulars Unit
Approved in
Review Order
dated
25.06.2013
Petitioner’s
submission
(actual)
Approved in
truing-up for
FY 2012-13
Net Generation MU 44.69 38.48 38.48
Total own generation
Installed Capacity MW 131.00 131.00 131.00
De-rated Capacity MW 128.00 128.00 128.00
Gross Generation MU 758.48 800.74 800.74
Auxiliary
Consumption MU 7.44 7.89 7.89
Net Generation MU 751.04 792.85 792.85
4.3 Power Purchase
Petitioner’s submission
TSECL submitted that it had firm allocations of power from Central Generating
Stations of North Eastern Electric Power Corporation (NEEPCO) and National
Hydro Power Corporation (NHPC) in FY 2012-13. TSECL submitted its allocations
from the Central Generating Stations, as shown in the following Table:
Table 4-6: Allocation of power from CGS to TSECL
Sl.
No.
Name of
Generation Station Ownership
Installed
Capacity
(MW)
Share of
Tripura
(%)
Share of
Tripura
(MW)
1. Loktak Hydro-
Electric Power
Station
NHPC 105.00 11.52% 12.10
2. Khandong HEP NEEPCO 50.00 5.33% 2.67
3. Kopili plus Kopili
Extn HEP NEEPCO 200.00 5.67% 11.34
4. Kopili Stage II NEEPCO 25.00 9.00% 2.25
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 46
November 2014
Sl.
No.
Name of
Generation Station Ownership
Installed
Capacity
(MW)
Share of
Tripura
(%)
Share of
Tripura
(MW)
5. Doyang HEP NEEPCO 75.00 6.70% 5.03
6. Ranganadi HEP NEEPCO 405.00 7.16% 29.00
7. Agartala Gas
Turbine Power Plant
(AGTPP)
NEEPCO 84.00 17.00% 14.28
8. Assam Gas Based
Power Plant
(AGBPP)
NEEPCO 291.00 6.55% 19.06
Unallocated 5.30% 10.00
Total 1,235.00 105.41
The Petitioner has submitted the actual gross power purchase quantum of 429.69
MU for FY 2012-13, as shown in the table below:
Table 4-7: Actual Power Purchase for FY 2012-13
(MU)
Source of Power Purchase Power Purchase
in FY 2012-13
NEEPCO 364.29
NHPC 65.40
Total 429.69
Commission’s analysis
In the previous Tariff Order dated June 25th, 2013, the Commission had approved
total power purchase of 423.56 MU from all sources for FY 2012-13. It is observed
that the actual power purchase of TSECL is marginally higher than the power
purchase approved by the Commission in the previous Tariff Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 47
November 2014
The Commission, vide data gaps sent to the Petitioner, directed the Petitioner to
submit the month-wise and station-wise power purchase quantum and cost for FY
2012-13. In its reply to the data gaps sent by the Commission, the Petitioner
submitted the month-wise power purchase quantum for FY 2012-13. Based on the
data of actual power purchase submitted by the Petitioner, the Commission
approves the actual power purchase quantum of 429.69 MU for FY 2012-13, as
shown in the Table below:
Table 4-8: Approved Power Purchase for FY 2012-13
(MU)
Source of
Power Purchase
Approved in
Review Order for
FY 2012-13
Petitioner’s
submission
Approved in
truing up for FY
2012-13
NEEPCO 364.29 364.29 364.29
NHPC 59.28 65.40 65.40
Total 423.56 429.69 429.69
The above approval of power purchase quantum is subject to the treatment of
excess Transmission & Distribution (T&D) loss, as elaborated in the next section.
4.4 Transmission and Distribution Loss
Petitioner’s submission
TSECL submitted the actual T&D loss for FY 2012-13 as 32.85% and proposed
the same for truing up for FY 2012-13. The Petitioner submitted the data of actual
T&D loss for previous years, as given below:
Table 4-9: T&D loss of TSECL in previous years
Year T&D Loss of TSECL
FY 2006-07 36.98%
FY 2007-08 35.46%
FY 2008-09 34.20%
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 48
November 2014
Year T&D Loss of TSECL
FY 2009-10 31.87%
FY 2010-11 29.26%
FY 2011-12 29.81%
FY 2012-13 32.85%
TSECL submitted that since FY 2006-07, it has been able to reduce the T&D
losses by 1.5% to 2% every year. TSECL submitted that the increase in the T&D
losses from FY 2010-11 to FY 2012-13 is due to the increase in the LT:HT ratio as
a result of extensive village electrification and new service connections in remote
areas over the years.
TSECL submitted that it is electrifying the un-electrified areas at a fast pace under
grants and loans provided by the Rural Electrification Corporation (REC) under
the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). Through the
implementation of the scheme, TSECL has provided electricity to the far flung
areas and villages of the State. As a result, due to increase in the LT network and
the sales to domestic and Kutir Jyoti consumers, losses of the utility are also
increasing at considerable pace.
TSECL submitted that it has achieved village electrification of 92.89% in FY 2012-
13, as compared to village electrification of 64.90% in FY 2010-11. Hence, the
increased T&D loss is a result of rapid progress of village electrification.
Commission’s analysis
The Commission observes that the actual T&D loss of 32.85% submitted by the
Petitioner is much higher than the T&D loss of 25% approved by the Commission
in the previous Tariff Order dated June 25th, 2013.
The Petitioner’s justification for the increase in the T&D loss is increase in the
LT:HT ratio. The Commission has analysed the relationship between the actual
LT:HT ratio and the T&D loss of TSECL, based on the actual length of 33 kV, 11
kV and low voltage network of TSECL, as given in the Table below and depicted
pictorially in the Graph below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 49
November 2014
Table 4-10: LT:HT ratio vis-à-vis T&D loss of TSECL
Particular 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
33 kV Line (Ckt. km) 524 567 589 627 721 778 778
11 kV Line (Ckt. km) 7281 7971 8315 8539 8915 10027 10612
LT Line (Ckt. km) 9824 13451 15264 15692 16474 18474 19375
LT:HT Ratio 1.26 1.58 1.71 1.71 1.71 1.71 1.70
T&D Loss 36.78% 35.46% 34.20% 31.87% 29.26% 29.81% 32.85%
Figure 1: LT:HT ratio vis-à-vis T&D loss of TSECL
The Commission observes that in the years before FY 2008-09, the LT:HT ratio of
TSECL’s network was increasing substantially. However, during that period,
TSECL was able to reduce the T&D loss consistently every year. TSECL had
been able to reduce the T&D losses at the rate of around 1.5% to 2% every year
until FY 2010-11. Since FY 2008-09, the LT:HT ratio of TSECL’s network has
remained constant at around 1.71. However, the T&D loss for TSECL has
increased significantly from 29.26% in FY 2010-11 to 33.30% in FY 2013-14.
Further, the above analysis clearly shows that there is no co-relation between the
LT:HT ratio and the T&D loss, in case of TSECL. Therefore, the Commission
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
20.00%
22.00%
24.00%
26.00%
28.00%
30.00%
32.00%
34.00%
36.00%
38.00%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
T&D Loss (Left Side Axis) LT:HT Ratio (Right side Axis)
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 50
November 2014
rejects the contention of the Petitioner that the T&D loss has increased as a result
of increased LT network.
The Petitioner has also contended that the increased sales to Kutir Jyoti category
and Domestic category consumers are also a reason for the increase in T&D loss
in the TSECL network. The Commission has analysed the historical energy sales
to the Kutir Jyoti and Domestic categories as a percentage of total intra-State
energy sales by TSECL. The Commission observes that the sales to Kutir Jyoti
and Domestic categories has remained almost constant at 53-55% of the total
intra-State sales of TSECL from FY 2007-08 onwards, and hence, there has not
been any significant change in the same as can be seen from the following Table
and Graph:
Table 4-11: Kutir Jyoti and Domestic category sales as % of total intra-State sales vis-à-vis T&D loss of TSECL
Particular 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
KJ sales (MU) 9.67 10.96 12.03 18.02 16.66 17.62
Domestic Sales (MU) 210.45 230.89 250.21 290.8 324.41 347.86
Total KJ and Domestic
Sales (MU) 220.12 241.85 262.24 308.82 341.07 365.48
Total intra-State sales (MU) 397.81 450.85 494.56 568.83 624.18 683.05
KJ Sales as % of total Intra-
State Sales 2.43% 2.43% 2.43% 3.17% 2.67% 2.58%
Domestic Sales as % of total
Intra-State Sales 52.90% 51.21% 50.59% 51.12% 51.97% 50.93%
KJ+Domestic Sales as % of
total Intra-State Sales 55.33% 53.64% 53.02% 54.29% 54.64% 53.51%
T&D Loss 36.78% 35.46% 34.20% 31.87% 29.26% 29.81% 32.85%
Note: KJ = Kutir Jyoti
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 51
November 2014
Figure 2: Kutir Jyoti and Domestic category sales as % of total intra-State sales vis-à-vis T&D loss of TSECL
The above analysis shows that there is no co-relation between the sales to Kutir
Jyoti and Domestic category consumers and the T&D loss reported by TSECL.
The above analysis of energy sales to the Kutir Jyoti and Domestic category
consumers vis-à-vis T&D loss of the TSECL network clearly shows that, the
contention of the Petitioner that the T&D loss has increased as a result of increase
in the sales to Kutir Jyoti and Domestic consumer categories, is also incorrect.
In view of the above, the Commission has come to the conclusion that it cannot
allow the increased T&D loss of 32.85% as submitted by the Petitioner on the
basis of the contention that the same is the result of increase in LT:HT ratio as
well as increase in the sales to Kutir Jyoti and domestic category consumers.
For truing of FY 2012-13, the Commission has approved the same T&D loss of
25%, as approved by in the previous Tariff Order dated June 25th, 2013, as shown
below:
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
20.00%
22.00%
24.00%
26.00%
28.00%
30.00%
32.00%
34.00%
36.00%
38.00%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
T&D Loss (Left Side Axis) KJ+Domestic Sales as % of total Intra-State Sales (Right Side Axis)
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 52
November 2014
Table 4-12: Approved T&D loss for FY 2012-13
Particular
Approved in
Review Order for
FY 2012-13
Petitioner’s
submission
Approved in
truing up for FY
2012-13
T&D loss 25.00% 32.85% 25.00%
4.5 Energy Balance
Petitioner’s submission
Based on the energy sales, own generation and power purchase, the Petitioner
has submitted the energy balance for FY 2012-13, as shown in the following
Table:
Table 4-13: Energy Balance for FY 2012-13 submitted by TSECL
Particulars Unit
Petitioner’s
submission for FY
2012-13
Energy Requirement
Energy Sales within State MU 683.05
Sale in bilateral trade/UI MU 205.33
T&D Losses MU 334.15
T&D Losses % 32.85%
Total Energy Requirement @ TSECL
Periphery MU 1017.20
Energy Availability
Own Generation MU 792.85
Total Power Purchase MU 440.10
Gross Power Availability MU 1232.95
NER Loss MU 10.41
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 53
November 2014
Particulars Unit
Petitioner’s
submission for FY
2012-13
Net Power Availability MU 1222.53
Commission’s analysis
The Commission observes that the North Eastern Region (NER) loss of 10.41 MU
reported by the Petitioner for FY 2012-13 is significantly lower than the NER loss
of 29.86 MU approved in the review of FY 2012-13 in the previous Tariff Order
dated June 25th, 2005. The Commission approves the NER loss of 10.41 MU
submitted by the Petitioner for FY 2012-13.
It is observed that in the submission of energy balance, the Petitioner has
submitted total power purchase of 440.10 MU in FY 2012-13. However, as
mentioned earlier, for approval of power purchase, the Petitioner has submitted
429.69 MU for FY 2012-13 based on the actuals. The Commission has
considered power purchase of 429.69 MU in truing up for FY 2012-13 as
mentioned earlier.
Based on the approved energy sales, T&D loss, own generation and power
purchase, the Commission approves the energy balance for FY 2012-13, as
shown in the following Table:
Table 4-14: Approved energy balance for FY 2012-13
Particulars Unit
Approved in
Review
Order for FY
2012-13
Petitioner’s
submission
Approved in
truing up for
FY 2012-13
Energy Requirement
Energy Sales within State MU 697.50 683.05 683.05
Sale in bilateral trade/UI MU 225.52 205.33 205.33
T&D Losses MU 232.50 334.15 227.68
T&D Losses % 25.00% 32.85% 25.00%
Total Energy
Requirement @ TSECL
Periphery
MU 930.00 1017.20 910.73
Energy Availability
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 54
November 2014
Particulars Unit
Approved in
Review
Order for FY
2012-13
Petitioner’s
submission
Approved in
truing up for
FY 2012-13
Own Generation MU 751.04 792.85 792.85
Total Power Purchase MU 423.56 440.10 429.69
Gross Power Availability MU 1174.58 1232.95 1222.54
NER Loss MU 19.08 10.41 10.41
Net Power Availability MU 1155.52 1222.53 1212.13
4.6 Fuel Purchase Cost
Petitioner’s submission
The Petitioner has claimed Rs. 181.82 Crore as fuel purchase cost for FY 2012-13
including Rs. 181.78 Crore as the cost of gas and Rs. 0.04 Crore as the cost of
HSD. The Petitioner has claimed the cost of gas for RGTPP and BGTPP stations
as Rs. 103.96 Crore and Rs. 77.83 Crore, respectively. The Petitioner submitted
the break-up of fuel purchase cost of Rs. 181.82 Crore as shown in the following
Table:
Table 4-15: Fuel purchase cost submitted by TSECL for truing up of FY 2012-13
Particular Consumption of gas
(MMSCM)
Total fuel cost
(Rs. Crore)
RGTPP 185.7 103.96
BGTPP 141.9 77.83
Total Gas 327.6 181.78
HSD
0.04
Total Fuel
181.82
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 55
November 2014
Commission’s analysis
The Commission observed that fuel purchase cost of Rs. 181.82 Crore proposed
by the Petitioner is lower than the cost of Rs. 184.61 Crore approved by the
Commission in the review of ARR of FY 2012-13 in the previous Tariff Order. The
Commission, vide data gaps sent to the Petitioner, directed the Petitioner to
submit the month-wise data of fuel price and quantum, along with the bills raised
by the fuel suppliers. In its reply to the data gaps sent by the Commission, the
Petitioner submitted the summary of the fortnightly fuel purchase data for FY
2012-13. However, the Petitioner did not submit the bills raised by the fuel
suppliers. The Commission observed that according to the fortnightly data
submitted by the Petitioner, the quantum of gas purchase is same as that
submitted by the Petitioner in the Petition. However, according to the data
submitted by the Petitioner, the cost of gas for FY 2012-13 is Rs. 184.61 Crore as
approved by the Commission in the previous Tariff Order, which is higher than the
fuel cost of Rs. 181.82 Crore proposed by the Petitioner for the truing up for ARR
of FY 2012-13. The Commission reviewed the total fuel cost incurred by the
Petitioner for FY 2012-13 from the provisional annual accounts of the Petitioner.
The fuel purchase cost shown in “Note no. 18” of the annual accounts for FY
2012-13 is Rs. 181.82 Crore, which is the same as that proposed by the Petitioner
for truing up for FY 2012-13.
In view of the above, the Commission approves Rs. 184.61 Crore as the cost of
gas for truing up for FY 2012-13, based on the fortnightly break-up of gas
purchase submitted by the Petitioner. Additionally, the Commission approves the
cost of HSD for gas based thermal power projects as Rs. 0.04 Crore, as proposed
by TSECL.
The Commission approves Rs. 184.65 Crore as the fuel purchase cost for FY
2012-13, as shown in the following Table:
Table 4-16: Approved fuel purchase cost for FY 2012-13
Particulars Unit
Approved in
Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts
for FY 2012-
13
Approved in
Truing up for
FY 2012-13
RGTPP
Quantity
of Gas MMSCM 185.70 185.70 185.70
Amount Rs. Crore 103.57 103.96 103.57
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 56
November 2014
Particulars Unit
Approved in
Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts
for FY 2012-
13
Approved in
Truing up for
FY 2012-13
Average
Price Rs./SCM 5.58 5.60 5.58
BGTPP
Quantity
of Gas MMSCM 141.91 141.90 141.91
Amount Rs. Crore 81.04 77.83 81.04
Average
Price Rs./SCM 5.71 5.48 5.71
Total Gas
Quantity
of Gas MMSCM 327.61 327.60 327.61
Amount Rs. Crore 184.61 181.78 181.78 184.61
Average
Price Rs./SCM 5.64 5.55 5.64
HSD Amount Rs. Crore - 0.04 0.04 0.04
Total Fuel Amount Rs. Crore 184.61 181.82 181.82 184.65
4.7 Power Purchase Cost
Petitioner’s submission
As mentioned earlier, the Petitioner has submitted its allocations from the Central
Generating Stations of NHPC and NEEPCO. The Petitioner submitted the power
purchase cost of Rs. 173.93 Crore for FY 2012-13, as shown in the following
Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 57
November 2014
Table 4-17: Power Purchase Cost as submitted by TSECL for truing up for FY 2012-13
Particulars
Power
purchase
(MU)
Average Rate
(Rs./kWh)
Power Purchase
Cost
(Rs. Crore)
NEEPCO 364.29 3.06 130.25
NHPC 65.40 2.24 16.58
PGCIL Charges 22.44
RLDC Charges +
Other Charges 4.66
Total 429.69 4.05 173.93
The Petitioner submitted that the actual average power purchase rate for FY
2012-13 was Rs. 4.05 per unit against Rs. 3.97 per unit approved by the
Commission during review of ARR for FY 2012-13 in the previous Tariff Order.
The reason for the difference in the power purchase rate is due to drop in power
procurement from Kopili station of NEEPCO.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved the power cost for FY
2012-13 at Rs. 168.02 Crore for 423.56 MU, at the average power purchase rate
of 3.97 Rs./kWh. As against that, the Petitioner has submitted the actual power
purchase cost of Rs. 173.93 Crore for the purchase of 429.69 MU at the average
rate of power purchase of 4.05 Rs./kWh.
The Commission, vide the data gaps sent to the Petitioner, directed the Petitioner
to submit the month-wise and station-wise power purchase cost along with all the
bills received from the generators. In its reply to the data gaps sent by the
Commission, the Petitioner submitted the summary of the month-wise actual
power purchase quantum for FY 2012-13 from NEEPCO and NHPC. However,
the Petitioner did not submit the month-wise and station-wise power purchase
cost and the bills raised by the generators supporting the same.
It is observed that the power purchase cost of Rs. 173.93 Crore submitted by the
Petitioner is based on the provisional annual accounts for FY 2012-13 submitted
by the Petitioner along with the Petition. However, the Petitioner submitted revised
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 58
November 2014
provisional annual accounts for FY 2012-13 along with the provisional annual
accounts of FY 2013-14. As per the revised provisional annual accounts of FY
2012-13 submitted by the Petitioner, the power purchase cost is Rs. 150.59 Crore
for FY 2012-13. In the revised provisional annual accounts of the Petitioner,
additional amount of Rs. 5.77 Crore is also mentioned as power purchase cost
pertaining to prior period.
It is observed that the power purchase cost of Rs. 173.93 Crore proposed by the
Petitioner for truing up for FY 2012-13 is significantly higher than the cost of Rs.
150.59 Crore mentioned in the revised provisional annual accounts for FY 2012-
13. Further, the Petitioner has neither submitted the plant-wise power purchase
cost nor the bills raised by the generators for sale of power, in support of its
submission. Hence, the Commission approves power purchase cost for truing up
for FY 2012-13 as Rs. 150.69 Crore, based on the revised provisional annual
accounts of TSECL. Further, the amount of Rs. 5.77 Crore mentioned in the
revised provisional annual accounts as power purchase cost pertaining to prior
period, is not approved by the Commission at this stage, since, it is not known as
to which year the power purchase cost pertains to, and also since, the final truing
up for all the years since FY 2009-10 has not been done yet due to non-
submission of the annual accounts duly audited by the Statutory Auditor for these
years.
In view of the above, the Commission approves Rs. 150.59 Crore towards power
purchase cost in the truing-up for FY 2012-13, as shown in the Table below:
Table 4-18: Approved Power Purchase Cost for FY 2012-13
Particulars Unit
Approved in
Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
annual
accounts for
FY 2012-13
Approved in
truing up for
FY 2012-13
Power
purchase MU 423.56 429.69 429.69
Power
Purchase
Cost
Rs.
Crore 168.02 173.93 150.59 150.59
Average
Power
Purchase
Cost
Rs./kWh 3.97 4.05 3.50
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 59
November 2014
4.8 Operation and Maintenance (O&M) expenses
Petitioner’s submission
The Petitioner has claimed O&M expenses of Rs. 126.35 Crore in the truing-up for
FY 2012-13 against Rs. 127.59 Crore approved by the Commission in the
previous Tariff Order, as summarized in the Table below:
Table 4-19: O&M expenses claimed in the truing-up for FY 2012-13
(Rs. Crore)
Particulars Petitioner’s
submission
Employee Expenses 91.21
Repair and Maintenance Expenses 21.36
Administrative and General Expenses 13.78
Total 126.35
The component-wise O&M expenses are elaborated in the subsequent
paragraphs.
4.8.1 Employee Expenses
Petitioner’s submission
The Petitioner submitted that employee expenses comprise of salaries, dearness
allowance, bonus, terminal benefits in the form of pension and gratuity, leave
encashment and staff welfare expenses. The Petitioner submitted that the
employee expenses as per the provisional annual accounts for FY 2012-13 was
Rs. 91.21 Crore, and requested the Commission to allow the employee cost of Rs
91.21 Crore for FY 2012-13.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved employee expenses
of Rs. 97.08 Crore for FY 2012-13. The Petitioner has submitted employee
expenses for FY 2012-13 as Rs. 91.21 Crore, based on the provisional annual
accounts for FY 2012-13, which is lower than the approved expenses.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 60
November 2014
Hence, the Commission approves employee expenses of Rs. 91.21 Crore in the
truing up for FY 2012-13, based on the provisional annual accounts of TSECL.
4.8.2 Repair and Maintenance (R&M) expenses
Petitioner’s submission
The Petitioner submitted that R&M expenses are required for day-to-day up-keep
of its generation, transmission and distribution functions and therefore form an
integral part of its efforts to provide reliable and quality power supply to its
consumers and reduce the losses in its system. The Petitioner further submitted
that as per “Note No. 21” of the provisional annual accounts for FY 2012-13, R&M
expense was Rs. 21.36 Crore. The Petitioner requested the Commission to allow
R&M expense of Rs 21.36 Crore as per the provisional accounts for FY 2012-13.
The Petitioner submitted that the actual R&M expenses were higher than that
approved by the Commission due to the increase in R&M costs of the generating
stations, especially for Rokhia GTPP. The Petitioner added that in FY 2012-13,
there was a fire incident, due to which the R&M cost had increased.
Commission’s analysis
The Commission had approved R&M expenses of Rs. 14.93 Crore for FY 2012-13
in the previous Tariff Order. The Petitioner has submitted that the R&M expenses
for FY 2012-13 is Rs. 21.36 Crore as per the provisional annual accounts for FY
2012-13. The Commission observed that “Note No. 21” of the revised provisional
annual accounts for FY 2012-13 submitted by the Petitioner along with the
provisional annual accounts for FY 2013-14, shows R&M expenses for FY 2012-
13 as Rs. 23.71 Crore.
The Commission accepts TSECL's justification for the increase in the R&M
expenses vis-a-vis the approved R&M expenses. Hence, based on the revised
provisional annual accounts of FY 2012-13 submitted by the Petitioner, the
Commission approves the R&M expenses at Rs. 23.71 Crore in the truing-up for
FY 2012-13.
4.8.3 Administrative and General (A&G) expenses
Petitioner’s submission
The Petitioner submitted that the Administrative and General (A&G) expenses
mainly comprise of rents, telephone and other communication expenses,
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 61
November 2014
professional charges, conveyance and travelling allowances, other debits, etc.
The Petitioner requested the Commission to allow the A&G expenses of Rs. 13.78
Crore for FY 2012-13 as per “Note No. 21” of provisional annual accounts of FY
2012-13.
Commission’s analysis
The Commission had approved A&G expenses of Rs. 15.58 Crore for FY 2012-13
in the previous Tariff Order. The Petitioner has submitted that the A&G expense
for FY 2012-13 is Rs. 13.78 Crore as per the provisional annual accounts for FY
2012-13. The Commission observed that “Note No. 21” of the revised provisional
annual accounts for FY 2012-13 submitted by the Petitioner along with the
provisional annual accounts for FY 2013-14, shows A&G expenses for FY 2012-
13 as Rs. 13.58 Crore.
The actual A&G expenses are lower than the approved A&G expenses. Hence,
based on the revised provisional annual accounts submitted by the Petitioner, the
Commission approves the A&G expenses at Rs. 13.58 Crore in the truing-up for
FY 2012-13.
Based on the approved employee expenses, R&M expenses and A&G expenses
for FY 2012-13 as mentioned above, the Commission approves O&M expenses of
Rs. 129.06 Crore for TSECL in the truing up for FY 2012-13, as shown in the
following Table:
Table 4-20: O&M expenses approved for FY 2012-13
Particulars
Approved in
Review
Order for FY
2012-13
Petitioner’s
submission
As per the
provisional
annual
accounts
Approved in
truing up of
FY 2012-13
Employee Expense 97.08 91.21 91.21 91.21
Repair and
Maintenance
Expense
14.93 21.36 23.71 23.71
Administrative and
General Expenses 15.58 13.78 13.58 13.58
Total 127.59 126.35 128.51 128.51
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 62
November 2014
4.9 Depreciation
Petitioner’s submission
The Petitioner has claimed gross depreciation of Rs. 48.09 Crore in the truing-up
for FY 2012-13. The Petitioner submitted that it has considered the depreciation
rate as per the Companies Act, 1956 and has computed the gross depreciation on
the average of opening and closing GFA for FY 2012-13, as detailed in the Table
below:
Table 4-21: Depreciation claimed by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Asset
Particulars
Depreciation
Rate
Total Gross
Block as on
31.03.2012
Total Gross
Block as on
31.03.2013
Gross
Depreciation
Amount for
FY 2012-13
Land 0.00% 59.62 59.67 0.00
Building 2.49% 30.95 31.13 0.77
Plant and
Machinery 5.28% 876.40 885.34 46.51
Computer 16.21% 0.44 0.69 0.09
Computer and
Office Equipment 16.21% 3.44 3.44 0.55
Office Equipment 16.21% 0.11 0.18 0.02
Furniture 6.33% 1.30 1.39 0.09
Vehicles 9.50% 0.57 0.57 0.05
Grand Total 972.83 982.41 48.09
Weighted Average Rate of
Depreciation (%) 4.92%
The Petitioner also submitted the details of grants taken from the Department of
Power, Government of Tripura, for creation of assets during FY 2012-13 and other
deposits (REC, MPLAD, BEE Deposit works, etc.) and accordingly computed the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 63
November 2014
net depreciation after considering the percentage of grant as shown in the Table
below:
Table 4-22: Net Depreciation claimed by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Asset Particulars Units FY 2012-13
Grants for creation of assets Rs. Crore 576.89
GFA Rs. Crore 982.41
% of Grant / GFA % 58.72%
Gross Depreciation Rs. Crore 48.09
Net Depreciation Rs. Crore 19.85
The Petitioner submitted that it is working on preparing the Fixed Assets Register
as directed by the Commission; however, till then it requested the Commission to
allow the net depreciation amount of Rs. 19.85 Crore for FY 2012-13.
Commission’s analysis
Regulation 5 II (viii) of TERC Tariff Regulations, 2004 specifies as follows:
“5 II (viii) Depreciation on the assets capitalized based on the investment
programme approved by the Commission and actually in use. The rates of
depreciation shall be as applicable on straight line method under the
Companies Act as amended from time to time”
The above Regulations clearly provide for allowance of depreciation on assets
capitalized based on the investment approved by the Commission and actually in
use. The Petitioner has never come before the Commission with an investment
plan for the Commission’s approval despite the Commission’s following directive
given in the Tariff Order dated March 28th, 2012:
“The Commission directs the TSECL to prepare and maintain asset wise
depreciation registers in complete order and get them audited and
submitted to the Commission by 30th June, 2012 . The Commission further
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 64
November 2014
directs the petitioner to submit their scheme-wise Capital Expenditure Plan
along with , details of funding sources, cost benefit analysis of the project,
completion date of project, single line diagram of the major capital works,
Detailed Project Report (DPR), reason for spillover of project and reason
for escalation of cost of the project in every quarter of the year.”
Also, the Petitioner has not submitted any documentary evidence regarding the
capitalized assets that have been actually put to use.
Further, the Commission in the previous Tariff Order had ruled as follows:
“The depreciation computed by the Petitioner for FY 2012-13 was not
based on the Fixed Assets Register audited by a Statutory Auditor.
Therefore, the Commission approves the depreciation for FY 2012-13 as
approved in the previous Tariff Order i.e. Rs. 24.31 Crore”
Further it is observed that despite several directions from the Commission in this
regard, the Petitioner has not complied with the Commission’s directive regarding
submission of Fixed Assets Register and annual capital expenditure plan. In the
previous Order also, the Commission has pointed out that it is very difficult to
ascertain the following from the Accounting Notes/Schedule:
Assets are in service
Assets are not in use
Assets exist but lying as dead stock
Assets considered as scrap
Sources of the funds utilized in the capital expenditure
As detailed in previous Orders, due to the absence of the audited Fixed Assets
and Depreciation register, it is difficult for the Commission to ascertain the GFA
value of the Petitioner. Based on this philosophy, the Commission has been
allowing the depreciation of Rs. 24.31 Crore approved for FY 2010-11 in its Tariff
Order dated March 28th, 2012, for the subsequent years also. It may also be noted
that the Commission had provisionally approved the above depreciation for FY
2010-11.
The Petitioner has submitted that it is working on preparing the Fixed Assets
Register as directed by the Commission, and has already prepared the asset
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 65
November 2014
register pertaining to certain assets of Generation and Transmission function. The
Petitioner has also submitted that preparation of asset register is a time
consuming activity, and it is contemplating to take up this proposal with State
Government for technical and financial guidance regarding the same. The
Commission expects that the Petitioner should expedite in the matter and submit
the same during the next tariff determination exercise. Until then, the Commission
has accepted the Petitioner’s submission with regard to GFA and computation of
depreciation based on the same by applying the depreciation rates as per the
Companies Act 1956 in accordance with the TERC Tariff Regulations, 2004.
However, it is to be noted that the depreciation allowed by the Commission during
the truing up of FY 2012-13 is provisional.
In view of the above, the Commission has provisionally allowed depreciation of
Rs. 19.85 Crore as submitted by the Petitioner. However, the Commission directs
the Petitioner to submit the Fixed Assets and Depreciation Register before
the Commission for its review and consideration of the depreciation amount
claimed by the Petitioner. Accordingly, the Commission will revisit the
allowable depreciation, after preparation and submission of the Fixed
Assets Register, duly audited by the Statutory Auditor, in the next year’s
Tariff Order. The Commission further directs the Petitioner to submit the
scheme-wise Capital Expenditure Plan along with details of funding
sources, cost benefit analysis of the project, completion date of project,
single line diagram of the major capital works, Detailed Project Report
(DPR), reason for spillover of project and reason for escalation of cost of the
project in every quarter of the year.
4.10 Interest and Finance Charges
Petitioner’s submission
While preparing the true-up for FY 2012-13, the Petitioner has considered the
following heads for computing the total Interest and Finance charges:
1) Interest on Loan
2) Guarantee Fee
3) Bank Commission for letter of credit
4) Interest on consumer security deposit
The Petitioner submitted that it has taken loans from the PFC / REC / Govt. of
Tripura, as detailed below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 66
November 2014
a) Loan from PFC:
The Petitioner submitted that the funds are released by PFC under R-
APDRP scheme and 100% of the approved cost is provided as loan from
the Government of India through Gross Budgetary Support (GBS). The
Petitioner submitted that the loan along with interest thereon shall be
converted into grant once the establishment of the required system is
achieved and verified by an independent agency appointment by Ministry of
Power (MoP). The Petitioner added that no conversion to grant will be
made, in case projects are not completed within 3 years from date of
sanction of the project and in such case, TSECL will have to bear full loan
and interest repayment. The Petitioner further submitted that since no
interest payment and repayment schedule is mentioned for PFC loan for
the computation of interest and finance charges, it has not considered any
repayment of loan from PFC in the present Petition.
b) Loan from REC:
The Petitioner submitted that the funds are released by REC under
RGGVY scheme and 90% of the approved cost is provided as grant and
remaining 10% as loan. The Petitioner explained that this fund is not given
directly to TSECL but is disbursed through Government of Tripura, and
TSECL is paying interest on this loan on behalf of GoT in four quarterly
instalments. The Petitioner submitted that in the accounts, this loan is
treated under head ‘GoT loan’ and the moratorium period of 5 years is
provided on repayment of this loan. The Petitioner added that since this is
not the loan given to it and funds are received on behalf of the GoT, the
amount received by TSECL has been considered within Deposit Work
under Other Long Term Liabilities, in the provisional accounts of FY 2012-
13.
c) Loan from Govt. of Tripura (GoT):
The Petitioner submitted that Government of Tripura loan is disbursed as
interest free loans from the State Government under budgetary Non-Plan
consideration and is to be repaid to the GoT under 30 equal instalments
within a period of 15 years as provided in Memorandum of the Government
of Tripura dated July 17th, 2009. The Petitioner submitted that it is
persuading the Government of Tripura to convert this interest free loan into
equity, however, till the time it is converted into equity, the amount has
been treated as loan.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 67
November 2014
The Table below shows the source-wise opening balance of loan, closing balance
of loan, and addition of loan during FY 2012-13, as submitted by the Petitioner:
Table 4-23: Source wise loan submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Source of Loan
Opening
balance for
FY 2012-13
Addition during
FY 2012-13
Closing
balance for
FY 2012-13
Govt. of Tripura 141.25 0.00 141.25
PFC 53.38 6.71 60.09
REC 0.42 0.00 0.42
Others 41.53 0.00 41.53
Total 236.58 6.71 243.29
The Petitioner submitted that since the interest is being paid only on REC loans,
hence, the same has been taken into consideration while computing interest and
finance charges for FY 2012-13, as shown in the Table below:
Table 4-24: Interest on Loan submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars FY 2012-13
Gross Normative loan – Opening 195.05
Increase/Decrease due to ACE during the Year 6.71
Repayments of Normative Loan during the year 0.00
Net Normative loan – Closing 201.76
Average Normative Loan 198.41
Interest on loan (Only REC Component) 2.05
The Petitioner submitted the total financing cost, which includes Interest on capital
loans, guarantee fees, bank commission for Letter of Credit, and Interest on
consumer security deposit, as shown in the Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 68
November 2014
Table 4-25: Interest and Finance Charges submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars FY 2012-13
1) Interest on capital loans 2.05
2) Other Finance charges (=a+b) 0.75
a) Guarantee Fee 0.75
b) Bank Commission for letter of credit* 0.00
3) Interest on consumer security deposit 0.40
4) Net Interest and Finance charges (= 1+2+3) 3.21
The Petitioner requested the Commission to approve the interest & finance
charges of Rs. 3.21 Crore for FY 2012-13.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved Rs. 0.34 Crore as
interest and finance charges. “Note No. 20” of the provisional annual accounts for
FY 2012-13 shows that in FY 2012-13, the Petitioner has not incurred any
expense towards interest and finance charges.
Since, the Petitioner has not incurred any actual expense towards interest and
finance charges in FY 2012-13, the Commission approves the Interest and
Finance charges as nil in the truing up for FY 2012-13, as shown in the Table
below:
Table 4-26: Interest and Finance Charges approved for truing up of FY 2012-13
(Rs. Crore)
Particulars
Approved in
Review Order
for FY 2012-13
Petitioner’s
submission
Provisional
accounts
for FY
2012-13
Approved in
truing up of
FY 2012-13
Net Interest and
Finance charges 0.34 3.21 0.00 0.00
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 69
November 2014
4.11 Interest on Working Capital
Petitioner’s submission
The Petitioner submitted that owing to the deteriorating financial health of the
Corporation, it may incur working capital crunch and hence, it has claimed interest
on working capital on normative basis, as specified in the Tariff Regulations, 2004.
The Petitioner submitted that it is pertinent to note that it has cash at its disposal,
which is depleting continuously due to working capital requirement, and TSECL
may not be able to use the cash for other capital works in the future. The
Petitioner further submitted that forgone opportunity by not claiming working
capital interest and using the cash reserve results in depletion of cash reserves.
The Petitioner added that there is an opportunity cost involved in using cash for
working capital, as the utility could have invested this cash in securities or bank
deposits, hence, it has claimed Interest on Working capital.
The Petitioner submitted that the working capital requirement has been estimated
for calculating the normative interest charges to be allowed for financing the
working capital requirement. The Petitioner added that as per TERC Tariff
Regulations 2004, the working capital norms have been defined separately for
generation, transmission and distribution functions.
The considerations for calculation of working capital and interest thereon, as
submitted by the Petitioner, are summarized in the Table below:
Table 4-27: Norms for Interest on Working Capital submitted by the Petitioner for truing up of FY 2012-13
Particulars Generation Transmission Distribution
Norms for calculation
One and Half
Months of
sales for
generation
(45 days)
One and Half
Months of
sales for
transmission
(45 days)
Two months
of sales for
distribution
business (60
days)
The function wise percentage break up of gross fixed assets for Generation,
Transmission and Distribution as on April 1st, 2013 considered by the Petitioner
for calculating the Working capital requirement during FY 2012-13, is shown in the
Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 70
November 2014
Table 4-28: Percentage break up of Gross Fixed Assets for G, T and D as submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars Generation Transmission Distribution Total
Assets
Gross Block as on
01.04.2013 309.10 71.24 602.08 982.41
Function wise %
age break up 31.46% 7.25% 61.29%
Accordingly, the Petitioner has claimed Rs. 11.91 Crore towards Interest on
Working capital for FY 2012-13, as shown in the Table below:
Table 4-29: Interest on Working Capital as submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars
% of break-
up of
Assets
Norms for
Working Capital
requirement (in
days)
FY
2012-13
Generation 31.46% 45 21.09
Transmission 7.25% 45 4.86
Distribution 61.29% 60 54.77
Total Working Capital
Requirement 80.72
Interest Rate (@ SBI PLR on
April 1st, 2012) 14.75%
Interest on Working Capital 11.91
Commission’s analysis
The Commission has examined the computation of interest on working capital
submitted by the Petitioner. However, Regulation 5(II)(Vii)(c) of the TERC (Tariff)
Regulations, 2004, specifies as follows:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 71
November 2014
“5 (II) (Vii)(c) interest on working capital facilities limited to actual or
equivalent to two months sales whichever is less…”
Thus, from the above, it is clear that the Regulations allow the interest on working
capital limited to actual. Further, from the provisional annual accounts for FY
2012-13, the Commission has observed that the Petitioner has not paid any
interest cost towards working capital loan borrowed from the Banks/Financial
Institutions. The Commission has further observed that the Petitioner in the past
years has not borrowed from the Banks/Financial Institutions to meet its working
capital requirement.
The Commission, accordingly, approves the interest on working capital as Nil in
the truing up for FY 2012-13.
Table 4-30: Interest on working capital approved for FY 2012-13
(Rs. Crore)
Particulars
Approved
in Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts
for FY
2012-13
Approved
in truing
up of FY
2012-13
Interest on working
capital 0.00 11.91 0.00 0.00
4.12 Reasonable Return
Petitioner’s submission
The Petitioner submitted that as per TERC Tariff Regulations, 2004, reasonable
return is to be calculated at 5% above the ruling RBI rate or 3% over PLR rate of
SBI or average of any three nationalized banks, whichever is higher. The
Petitioner submitted that it has been observed that the SBI PLR rate as on
01.04.2012 was 14.75%, hence, for calculation of reasonable return, the rate of
return for overall paid-up equity capital has been assumed to be 17.75%, i.e., 3%
over SBI PLR.
The Petitioner submitted that as per Note No 1 of the provisional annual accounts
for FY 2012-13, the paid-up equity capital was Rs 109.29 Crore as on April 1st,
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 72
November 2014
2012 and has increased to Rs. 654.75 Crore on March 31st, 2013. The reasonable
return has been calculated over the average of this paid up equity capital.
The computation of reasonable return as submitted by the Petitioner is
summarized in the Table below:
Table 4-31: Reasonable Return submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars
Petitioner’s
submission for truing
up of FY 2012-13
Equity Capital as on April 1st, 2012 109.29
Equity Capital as on March 31st, 2013 654.75
Average Equity Capital during FY 2012-13 382.02
Rate of Reasonable return 17.75%
Reasonable return during the year 67.81
Thus, the Petitioner has claimed reasonable return of Rs. 67.81 Crore for FY
2012-13 as against Rs. 16.52 Crore approved by the Commission for FY 2012-13.
Commission’s analysis
The Commission had approved Rs. 16.52 Crore as the reasonable return for FY
2012-13. The Commission has observed that the Petitioner has computed the
reasonable return by considering 17.75% interest rate on the total equity of
TSECL. As per the TERC Tariff Regulations 2004, the reasonable rate of return to
be calculated separately for the generation, transmission and distribution
business. While calculating the reasonable return for FY 2012-13, the Petitioner
has not segregated the average equity into generation, transmission and
distribution businesses.
Therefore, the computation of the reasonable return submitted by the Petitioner is
not as per TERC Tariff Regulations, 2004.
The Commission, in the previous Tariff Order, had computed the reasonable
return after segregating the average equity into generation, transmission and
distribution businesses. The Commission, in its Tariff Order dated March 28th,
2012, had ruled as follows:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 73
November 2014
“Clause 2 (II) Schedule -1 of TERC Tariff Regulations 2004 states that:
“The Reasonable Return for the purpose shall be – 5% above the
ruling RBI rate or 3% above the PLR of State Bank of India or
average of any other three approved Nationalized Banks whichever
is higher and calculated on the subscribed and paid up equity capital
which shall also include Share Premium Balance for this purpose but
shall not include Bonus Share or Shares issued other than for cash.”
Since the additional equity of 545.46 Crore highlighted above has not
reflected in the audited accounts of the petitioner, the Commission will take
decision on this matter once it is reflected in the audited accounts.
Accordingly, for FY 2011-12 and FY 2012-13, the Commission has
considered the average paid-up capital of Rs. 109.30 Crore.
The Commission, accordingly approves reasonable return at Rs. 16.52
Crore for FY 2012-13 against the petitioner’s claim for Rs. 36.64 Crore.”
From the provisional annual accounts of the Petitioner, it is observed that the paid
up equity capital as on March 31st, 2013 is equal to Rs. 654.75 Crore, and the Net
Fixed Assets appearing in the provisional annual accounts as on March 31st, 2013
are Rs. 682.33 Crore. It is obvious that the equity capital cannot be equal to the
entire fixed assets of the Company. In the power industry in India, the debt:equity
ratio is considered as 70:30 after deducting the amount of assets that have been
funded through grants or consumer contribution. In other words, equity capital is
capped at 30% of the total assets of the utility, after deducting the amount of
assets that have been funded through grants or consumer contribution. Hence, if
the equity portion is more than 30% of the fixed assets added, Return on Equity is
provided considering the equity as 30% of the fixed assets added by the utility. In
case of TSECL, most of the assets are funded through grants or consumer
contribution. Moreover, the provisional annual accounts of TSECL for FY 2012-13
also show that the equity shares have been issued to the Governor of Tripura for
amount equivalent to Rs. 554.96 Crore, without receipt of any payment in cash,
and have been issued pursuant to the State Government's notification regarding
transfer of assets. Hence, the amount of paid up equity capital reflected in the
provisional annual accounts of TSECL may not qualify for being considered as
'paid up equity capital' in accordance with the TERC Tariff Regulations, 2004,
since, the same have not been paid for.
In view of all the above, the Commission has considered the equity capital as on
March 31st, 2013 by limiting the same to 30% of the Net Fixed Assets appearing in
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 74
November 2014
the provisional annual accounts as on March 31st, 2013. Since, the Net Fixed
Assets for TSECL is Rs. 682.33 Crore as on March 31st, 2013 as per the
provisional annual accounts, the Commission has capped the equity of TSECL as
on March 31st, 2013 as Rs. 204.30 Crore, i.e., 30% of Rs. 682.33 Crore.
As per TERC Tariff Regulations 2004, the Commission in its previous Tariff Order
had considered interest rates at 15.23%, 14.23% and 15.23% respectively for
generation, transmission and distribution businesses. Since, the Petitioner has not
provided the break-up of the equity in generation, transmission and distribution, it
is difficult for the Commission to arrive at the normative reasonable return of the
Petitioner as per the TERC Tariff Regulations, 2004. Thus, for truing up of FY
2012-13, the Commission has considered the break-up of equity in generation,
transmission and distribution in the same proportion as the break-up of GFA of FY
2012-13, as submitted by the Petitioner. Accordingly, the Commission has
computed the average equity for FY 2012-13 of TSECL in the generation,
transmission and distribution assets. Further, the Commission has considered the
same interest rates as considered in the previous Order for the purpose of truing-
up of FY 2012-13.
Accordingly, the reasonable return approved by the Commission for FY 2012-13 is
shown in the Table below:
Table 4-32: Reasonable Return approved by the Commission for truing up of FY 2012-13
(Rs. Crore)
Particulars Average
Equity
Interest
Rate
Reasonable
Return
Generation 49.87 15.23% 7.59
Transmission 11.48 14.23% 1.63
Distribution 95.65 15.23% 14.57
Total 152.86 23.80
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 75
November 2014
4.13 Prior Period Income/Expense
Petitioner’s submission
The Petitioner submitted that any expense/income incurred/accrued and not
accounted for in the respective year but discovered in a subsequent year, are
treated as prior period charges/credits, and should be adjusted while calculating
the ARR. Based on the same, the Petitioner has submitted prior period income of
Rs. 0.904 Crore for FY 2012-13 as shown below:
Table 4-33: Prior Period Income for FY 2012-13 as submitted by the Petitioner
(Rs. Crore)
Sr.
No. Particulars FY 2012-13
1. Prior period expense (0.031)
2. Prior period income 0.945
Net prior period income 0.904
Commission’s analysis
The Petitioner has submitted prior period expense and prior period income as Rs.
0.03 Crore and Rs. 0.94 Crore, respectively, based on the provisional annual
accounts of FY 2012-13. However, it is observed that based on the revised
provisional annual accounts submitted by the Petitioner along with the provisional
annual accounts of FY 2013-14, the prior period expense and prior period income
is Rs. 0.54 Crore and Rs. 2.61 Crore, respectively. Hence, the net prior period
income for FY 2012-13 is Rs. 2.07 Crore, based on the revised provisional annual
accounts for FY 2012-13.
Prior period expenses and incomes are the outcomes of omissions/errors in
recording the transactions in the accounting statements. The items booked under
the prior period expenses are essentially ARR items like power purchase
expenses, O&M expenses, interest and finance charges, etc. Each item of ARR
has a distinct methodology of treatment in the ARR and true-up determination. In
the absence of clarity and details of each item booked under prior period
expenses with respect to the various heads to which they pertain, the Commission
has not allowed any claims towards such items.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 76
November 2014
Further, it is observed that the truing up for the years since FY 2009-10 has only
been done on the basis of the provisional accounts, and hence, the final truing up
of these years based on the accounts audited by the Statutory Auditors is yet to
be done. In such a scenario, where the final truing up for all the previous years
has not been done, there is still scope of consideration of omitted/erred
expenses/incomes in the final truing up of the corresponding years.
In view of the above, the Commission has not considered the prior period
expenses/credits claimed by the Petitioner at this stage. The Commission directs
that once the accounts, duly audited by the Statutory Auditor, are available for
any year, the issue of prior period expense/credit shall be considered for inclusion
in the ARR, based on merit.
Table 4-34: Prior period income/expenses approved for FY 2012-13
(Rs. Crore)
Particulars Petitioner’s
submission
Provisional
accounts for
FY 2012-13
Approved in
truing up of
FY 2012-13
Prior Period Expense -0.03 -0.54 0.00
Prior Period Income 0.94 2.61 0.00
Net Prior Period
Income 0.90 2.07 0.00
4.14 Non Tariff Income
Petitioner’s submission
The Petitioner submitted that other income mainly includes the following:
a) Interest earned on fixed deposits made in various banks and as detailed
under the head of ‘Investments’,
b) Other Miscellaneous Income like sale of scrap, sale of tender, meter rent,
etc.
c) Service connection charges.
The Petitioner further submitted that the interest income on fixed deposits (FDs) in
banks is mainly due to grant disbursed to it under several Government of India
schemes. The Petitioner submitted that this interest income earned on FDs is to
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 77
November 2014
be reimbursed back to the Government, hence, this income is current liability and
based on the figures given in the provisional annual accounts for FY 2012-13, only
10% of interest income has been considered as Non-Tariff income in this Petition.
The details of other income as submitted by the Petitioner, is shown in the Table
below:
Table 4-35: Non Tariff Income as submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars Petitioner’s submission for
truing up of FY 2012-13
Interest Income 35.64
Other Income 1.43
Service Connection Charges 3.19
Total 40.26
Accordingly, the Petitioner has requested the Commission to approve Non-Tariff
Income of Rs. 40.26 Crore as against Rs. 42.01 Crore approved by the
Commission in the Review Order dated 25th June, 2013.
Commission’s analysis
The Commission had approved Non-Tariff Income of Rs. 42.01 Crore for FY
2012-13 in its previous Order. The Petitioner has submitted actual non-tariff
income as Rs. 40.26 Crore for FY 2012-13 based on the provisional annual
accounts of FY 2012-13. However, it is observed that based on the revised
provisional annual accounts submitted by the Petitioner along with the provisional
annual accounts of FY 2013-14, the non-tariff income for FY 2012-13 is Rs. 45.85
Crore.
Hence, the Commission approves the non-tariff income of Rs. 45.85 Crore for
truing up of FY 2012-13, based on the revised provisional annual accounts of
TSECL, as shown in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 78
November 2014
Table 4-36: Non-tariff income approved for FY 2012-13
(Rs. Crore)
Particulars
Approved
in Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts
for FY
2012-13
Approved
in truing
up of FY
2012-13
Interest Income 38.11 35.64 35.76 35.76
Other Income 1.56 1.43 6.90 6.90
Service Connection
Charges 2.34 3.19 3.19 3.19
Total 42.01 40.26 45.85 45.85
4.15 Truing up of ARR for FY 2012-13
Based on the truing up of various components of the ARR for FY 2012-13 as
elaborated above, the Commission approves the ARR of Rs. 484.71 Crore in the
truing up for FY 2012-13, as shown in the table below:
Table 4-37: Approved ARR for FY 2012-13
(Rs. Crore)
Particulars
Approved
in Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts for
FY 2012-13
Approved
in truing
up for FY
2012-13
Fuel cost 184.61 181.82 181.82 184.65
Power purchase cost 168.02 173.93 150.59 150.59
O&M expenses 127.59 126.35 128.51 128.51
Depreciation 24.31 19.85 47.48 19.85
Interest on working
capital 0.00 11.91 0.00 0.00
Interest and finance
charges 0.34 3.21 0.00 0.00
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 79
November 2014
Particulars
Approved
in Review
Order for
FY 2012-13
Petitioner’s
submission
Provisional
accounts for
FY 2012-13
Approved
in truing
up for FY
2012-13
Reasonable Return 16.52 67.81 0.00 23.80
Aggregate Revenue
Requirement (ARR) 521.40 584.87 508.39 507.40
Less: non-tariff income 42.01 40.26 45.85 45.85
Less: prior period
income 0.00 0.90 2.07 0.00
Net Aggregate
Revenue
Requirement
479.39 543.71 460.48 461.55
4.16 Revenue from sale of power
Petitioner’s submission
The Petitioner has shown the revenue of Rs. 316.80 Crore earned from sale of
power for FY 2012-13, as shown in the Table below:
Table 4-38: Revenue from sale of power for FY 2012-13 as submitted by TSECL
Particulars Sales
(MU)
Revenue
(Rs. Crore)
Intra-State sale of power 683.05 251.40
Inter-State sale of power 205.33 65.39
Total Sale of Power by TSECL 888.38 316.80
Accordingly, the Petitioner requested the Commission to approve the revenue
from sale of power for FY 2012-13 as Rs. 316.80 Crore.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 80
November 2014
Commission’s analysis
Revenue from intra-State sale of energy in FY 2012-13
The Petitioner has shown revenue of Rs. 251.40 Crore from intra-State sale of
683.05 MU. Hence, based on the submission of the Petitioner, the average billing
rate in FY 2012-13 for intra-State sale works out to Rs. 3.68 per unit. The
Commission, in its previous Tariff Order, had approved intra-State sale of 697.50
MU and revenue of Rs. 288.23 Crore for FY 2012-13, at the average billing rate of
Rs. 4.13 per unit. The Petitioner submitted that the revenue from intra-State
energy sales submitted for FY 2012-13 is based on actuals and requested that the
same be considered in the truing-up for FY 2012-13.
Revenue from inter-State sale of energy in FY 2012-13
The Petitioner has shown revenue of Rs. 65.39 Crore against 205.33 MU sold
outside the Sate of Tripura. Hence, the average billing rate for the inter-State
sales in FY 2012-13 works out to Rs. 3.18 per unit. The Commission, in its
previous Tariff Order, had approved inter-State sales of 225.52 MU and revenue
of Rs. 98.07 Crore, at the average billing rate of Rs. 4.35 per unit for FY 2012-13.
The Commission observes that due to higher gross energy requirement for intra-
State sales on account of higher T&D loss in the network of TSECL, TSECL has
been able to sell lower amount of energy outside the State of Tripura, as
compared to the inter-State energy Sales approved by the Commission in the
Review for FY 2012-13. Further, the Commission observes that the rate of sale of
power for the inter-State sales submitted by the Petitioner is also significantly
lower than the average rate approved by the Commission in the Review for FY
2012-13 in the previous Tariff Order. As a result, the Petitioner has generated
revenue of only Rs. 65.39 Crore from the inter-State sale of power as against Rs.
98.07 Crore approved by the Commission in the previous Tariff Order. The
Petitioner submitted that the revenue from inter-State energy sales submitted for
FY 2012-13 is based on actuals and requested that the same be considered in the
truing-up for FY 2012-13.
The Commission verified the revenue from sale of power submitted by the
Petitioner from the provisional annual accounts of the Petitioner. The Commission
observes that the revenue of Rs. 316.80 Crore from sale of power submitted by
the Petitioner for FY 2012-13 is based on the provisional annual accounts for FY
2012-13, submitted by the Petitioner along with the Petition. However, in the
revised provisional annual accounts for FY 2012-13 submitted by the Petitioner
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 81
November 2014
along with the provisional annual accounts for FY 2013-14, the revenue from sale
of power is mentioned as Rs. 316.35 Crore. Hence, the Commission approves the
revenue from sale of power as Rs. 316.35 Crore in the truing up for FY 2012-13
based on the revised provisional annual accounts of TSECL.
Table 4-39: Approved revenue from sale of power for FY 2012-13
(Rs. Crore)
Particulars
Approved in
Review Order
for FY 2012-
13
Petitioner’s
submission
for truing up
Provisional
accounts
for FY
2012-13
Approved in
the truing
up for FY
2012-13
Revenue from
sale of Power 386.31 316.80 316.35 316.35
4.17 Revenue subsidy from Government of Tripura
The Petitioner submitted that the Government of Tripura (GoT) had paid subsidy
of Rs. 40.00 Crore for reduction in retail supply tariff and TSECL has taken the
same into consideration while calculating the revenue gap for FY 2012-13. TSECL
requested the Commission to approve the subsidy from GoT as Rs. 40.00 Crore
in the truing up for FY 2012-13. The Commission has verified the revenue subsidy
received from the GoT with the provisional annual accounts of TSECL, and
approves the revenue subsidy from GoT as Rs. 40.00 Crore in the truing up for FY
2012-13.
Table 4-40: Approved revenue subsidy from Government of Tripura
(Rs. Crore)
Particulars
Approved in
Review
Order for FY
2012-13
Petitioner’s
submission
Provisional
accounts for
FY 2013-14
Approved in
the truing
up for FY
2012-13
Revenue from
Subsidy from GoT 40.00 40.00 40.00 40.00
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 82
November 2014
4.18 Receivable for energy not sold or lost in the system
Clause (5) (1)(i) of the Schedule – 1 of the TERC Tariff Regulations, 2004
specifies that the income of the licensee shall also include receivable for energy
not sold or lost in the system. The relevant extract of Clause (5) (1)(i) of the
Schedule – 1 of the TERC Tariff Regulations, 2004 is reproduced below:
“(5) (1) the income shall include all income from any source, but not
limited to-
(i) sale of energy-
(a)...
(b) receivable for energy not sold or lost in the system (to be fixed on
gross energy not sold minus permissible technical and commercial
losses and permissible self-consumption of energy. The rate to be
adopted shall be the average of the fuel cost and cost purchase plus
10% thereon to cover other costs).
...”
In view of the aforementioned provisions of the TERC Tariff Regulations, 2004,
and based on the approved own generation, sales and energy balance for FY
2012-13, the Commission has computed the energy not sold or lost in the system
for FY 2012-13 as 96.07 MU, as shown in the following Table:
Table 4-41: Energy not sold or lost in the system for FY 2012-13
(MU)
Particulars Derivation FY 2012-13
Gross own generation A 800.74
Total Power Purchase B 429.69
Gross energy availability C=A+B 1230.43
Energy sales within State D 683.05
Energy sales outside the State E 205.33
Total energy sales F=D+E 888.38
Gross energy not sold G=C-F 342.05
Permissible self consumption (equal to the
auxiliary consumption of own generation) H 7.89
Permissible T&D loss I 227.68
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 83
November 2014
Particulars Derivation FY 2012-13
NER Loss J 10.41
Energy not sold or lost in the system G-H-I-J 96.07
Based on the provisions of the TERC Tariff Regulations, 2004, the Commission
has determined the receivables for the energy not sold or lost in the system for
TSECL for FY 2012-13 as Rs. 29.92 Crore, as shown in the following Table, and
has included the same in computing the revenue gap for FY 2012-13:
Table 4-42: Approved receivables for the energy not sold or lost in the system for FY 2012-13
Particulars Unit Derivation
Approved
for FY 2012-
13
Fuel cost Rs. Crore A 184.65
Net energy generated (from fuel
based plants) MU B 754.37
Total Power Purchase cost Rs. Crore C 150.59
Total power purchase quantum MU D 429.69
Total fuel and power purchase cost Rs. Crore E=A+C 335.24
Total energy quantum (own
generation from fuel based plants +
power purchase)
MU F=B+D 1184.06
Average fuel and power purchase
cost Rs./kWh G=(Ex10)/F 2.83
10% margin on the average fuel and
power purchase cost, to cover other
costs
Rs./kWh H=10% of G 0.28
Per unit rate for energy not sold or
lost in the system Rs./kWh I=G+H 3.11
Energy not sold or lost in the
system MU J 96.07
Receivable for Energy not sold or Rs. Crore K = IxJ/10 29.92
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 84
November 2014
Particulars Unit Derivation
Approved
for FY 2012-
13
lost in the system
4.19 Revenue for FY 2012-13
Considering the approved amounts of revenue from sale of power, revenue
subsidy from GoT, and receivable for energy not sold or lost in the system, the
Commission approves total revenue of Rs. 386.27 Crore in the truing up for FY
2012-13, as shown in the Table below:
Table 4-43: Approved total revenue for FY 2012-13
(Rs. Crore)
Particulars
Approved in
Review
Order for FY
2012-13
Petitioner’s
submission
Provisional
accounts
for FY
2012-13
Approved in
truing up for
FY 2012-13
Revenue from sale
of Power 386.31 316.80 316.35 316.35
Revenue Subsidy
from GoT 40.00 40.00 40.00 40.00
Receivable for
energy not sold or
lost in the system
- - - 29.92
Total Revenue 426.31 356.80 356.35 386.27
4.20 Revenue gap/surplus
Based on the approved Aggregate Revenue Requirement and total Revenue for
FY 2012-13, the Commission approves the revenue gap of Rs. 75.29 Crore for FY
2012-13, as shown below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 85
November 2014
Table 4-44: Approved revenue gap/surplus for FY 2012-13
(Rs. Crore)
Particulars
Approved in
Review Order
for FY 2012-13
Petitioner’s
submission
Approved in
truing up for
FY 2012-13
Net Aggregate
Revenue Requirement 479.38 543.71 461.55
Total revenue 426.30 356.80 386.27
Revenue gap 53.08 186.92 75.29
The Commission had approved the revenue gap for FY 2012-13 as Rs. 53.08
Crore in the Review of FY 2012-13 in the previous Tariff Order dated June 25th,
2013. In the truing up for FY 2012-13, the Commission approves the revenue
gap for FY 2012-13 as Rs. 75.29 Crore. The additional revenue gap of Rs. 22.21
crore has been added to the revenue requirement of FY 2014-15, as elaborated in
subsequent Chapters of this Order, since, the revenue gap of Rs. 53.08 crore has
already been allowed in the ARR and tariff of FY 2013-14, in the Tariff Order
dated June 25th, 2013.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 86
November 2014
5 Review of Aggregate Revenue Requirement (ARR) for
FY 2013-14
In this Chapter, the performance of TSECL in FY 2013-14 has been analysed by
the Commission and on the basis of the same, the ARR for TSECL for FY 2013-
14 approved in the previous Tariff Order dated June 25th, 2013 is revised. The
Commission has analysed all the elements of the ARR and revenue under review
for FY 2013-14 in this Chapter.
5.1 Energy Sales
Petitioner’s submission
The Petitioner submitted the actual intra-State energy sales of 712.12 MU for FY
2013-14, as shown in the following Table:
Table 5-1: Category wise intra-State energy sales for FY 2013-14 as submitted by TSECL
(MU)
Consumer Category Energy Sales
Kutir Jyoti 18.00
Domestic 372.40
Commercial 64.66
LT Industries 15.07
HT Industries 22.00
Bulk Supply 87.40
Tea, coffee & rubber garden 0.69
Public Water Works 67.50
Public Lighting 32.70
Irrigation and Water 29.55
Special Public Utility 2.30
Total intra-State sales 712.27
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 87
November 2014
Commission’s analysis
The Commission, vide its Tariff Order dated June 25th, 2013, had approved the
intra-State energy sales for FY 2013-14 as 808.58 MU. The actual sales in FY
2013-14 have been 712.27 MU, which is significantly lower than the sales
approved in the previous Tariff Order. However, the Petitioner has not submitted
any reason for such reduced energy sales as compared to sales approved in the
previous Tariff Order.
As regards the sales to Mobile Towers category, the Commission observes that it
had carved out a separate consumer category of Mobile Towers from the
Commercial category and had approved sales to that category a 22.00 MU. The
Petitioner has not submitted the actual sales to the Mobile Towers category
separately. The Commission approves 22.00 MU as sales to the Mobile Towers
category, same as that approved in the previous Tariff Order, and deducted the
same from the actual sales to Commercial category submitted by the Petitioner.
Further, as regards the sales to Special Public Utility category, it is observed that
the Petitioner has included the sales to the Public Lighting Category in the sales to
this category. However, in a separate submission, the Petitioner has mentioned
the sales to Special Public Utility category as 2.30 MU. Hence, the Commission
approves the sales to Special Public Utility Category as 2.30 MU and the same is
deducted from the actual sales of 35.00 MU to the Public Lighting category.
For all other Categories, the Commission approves the same energy sales as
submitted by the Petitioner based on actuals of FY 2013-14. Accordingly, the
Commission approves the intra-State sales for FY 2013-14 as 712.27 MU, as
shown in the following Table:
Table 5-2: Approved category-wise intra-State energy sales for FY 2013-14
(MU)
Category
Approved in
Order dated
25.06.2013
Petitioner’s
submission
(actuals)
Approved in
Review for FY
2013-14
Kutir Jyoti 17.22 18.00 18.00
Domestic 399.60 372.40 372.40
Commercial 71.97 64.66 42.66
Mobile Tower 22.00 - 22.00
Industrial 50.56 37.07 37.07
Bulk Supply 100.31 87.40 87.40
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 88
November 2014
Category
Approved in
Order dated
25.06.2013
Petitioner’s
submission
(actuals)
Approved in
Review for FY
2013-14
Tea, Coffee & rubber garden 0.74 0.69 0.69
Irrigation 40.52 29.55 29.55
Public Water works 73.29 67.50 67.50
Public Lighting 30.33 32.70 32.70
Special Public Utility 2.04 2.30 2.30
Total intra-State sale 808.58 712.27 712.27
5.2 Own generation
Petitioner’s submission
The Petitioner has submitted the actual gross generation in FY 2013-14 as 763.70
MU. The actual auxiliary consumption and net generation have been submitted by
the Petitioner as 7.53 MU and 756.17 MU, respectively, for FY 2013-14. TSECL
submitted that in order to improve the demand-supply scenario, one Unit (Unit IX)
of 21 MW of the Rokhia GTPP was commissioned in August, 2013.
The plant-wise actual gross generation, auxiliary consumption and net generation
as submitted by the Petitioner is presented in the following Table:
Table 5-3: Own generation for FY 2013-14 as submitted by the Petitioner
Particulars Unit Petitioner’s submission
for Review of FY 2013-14
RGTPP
Gross Generation MU 454.21
Auxiliary Consumption % 1.00%
Auxiliary Consumption MU 4.54
Net Generation MU 449.67
BGTPP
Gross Generation MU 274.99
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 89
November 2014
Particulars Unit Petitioner’s submission
for Review of FY 2013-14
Auxiliary Consumption % 1.00%
Auxiliary Consumption MU 2.75
Net Generation MU 272.24
GHEP
Gross Generation MU 34.50
Auxiliary Consumption % 0.70%
Auxiliary Consumption MU 0.24
Net Generation MU 34.26
Total Own Generation
Gross Generation MU 763.70
Auxiliary Consumption MU 7.53
Net Generation MU 756.17
Commission’s analysis
In the previous Tariff Order, the Commission had approved net energy generation
of 823.50 MU from own generating plants of TSECL for FY 2013-14. Against that,
the Petitioner has submitted the actual net generation of 756.17 MU for FY 2013-
14, which is lower by 67.34 MU than the approved net generation by the
Commission in the previous Tariff Order for FY 2013-14.
In the previous Tariff Order dated June 25th, 2013, the Commission had approved
total gross generation of 382.46 MU from existing units of RGTPP. Further, the
Commission had approved gross generation of 49.10 MU from the new Unit of 21
MW by estimating the generation from the Unit for 6 months from October 2013
and approving PLF of 53.53% for FY 2013-14. Accordingly, the Commission had
approved gross generation from RGTPP as 431.56 MU. The Petitioner has
submitted that the new Unit of RGTPP of 21 MW was commissioned in August,
2013. The Commission observes that considering the generation from new unit of
RGTPP for seven months from September, 2013, and at the PLF approved by the
Commission in the previous Tariff Order for the new and existing Units, 439.66
MU could have been generated from RGTPP. However, according to the
submission of TSECL, 454.21 MU has been generated from RGTPP in FY 2013-
14. Since, the actual generation from RGTPP is higher than the possible gross
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 90
November 2014
generation from RGTPP at PLF approved by the Commission for existing and new
Units of RGTPP, the Commission approves the actual gross generation of 454.21
MU from RGTPP for FY 2013-14. Considering the auxiliary consumption of
1.00%, i.e., 4.54 MU, the Commission approves the net generation of 449.67 MU
from RGTPP.
The Commission, in its previous Tariff Order for FY 2013-14, had approved the
gross generation from the Baramura Gas Thermal Power Plant (BGTPP) at
350.00 MU. The Petitioner has submitted the actual gross generation of 274.99
MU in FY 2013-14. The Petitioner has submitted that as Unit 5 of 21 MW of the
plant was out of bus for 5 months, the generation from BGTPP has been lower.
The Commission approves the actual gross generation of 274.99 MU from
BGTPP for FY 2013-14. Considering the auxiliary consumption of 1.00%, net
generation from BGTPP is approved as 272.24 MU for FY 2013-14.
The Commission, in its previous Tariff Order for FY 2013-14, had approved the
gross generation from the Gumti Hydro Electric Plant (GHEP) as 50.10 MU. The
Petitioner has submitted the actual gross generation of 34.50 MU in FY 2013-14.
The Petitioner has not submitted any reason for the reduced generation from
GHEP in FY 2013-14. The Commission approves the actual gross generation of
34.50 MU from GHEP for FY 2013-14. Considering the auxiliary consumption of
0.70%, net generation from GHEP is approved as 34.26 MU for FY 2013-14 .
The approved power generation from the own generating plants of the Petitioner
for FY 2013-14, is given in the Table below.
Table 5-4: Approved own generation for FY 2013-14
Particulars Unit
Approved in
Order dated
25.06.2013
Petitioner’s
submission
(actuals)
Approved in
Review for FY
2013-14
RGTPP (Including the new unit)
Gross Generation MU 431.56 454.21 454.21
Auxiliary Consumption % 1.00% 1.00% 1.00%
Auxiliary Consumption MU 4.32 4.54 4.54
Net Generation MU 427.24 449.67 449.67
BGTPP
Gross Generation MU 350.00 274.99 274.99
Auxiliary Consumption % 1.00% 1.00% 1.00%
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 91
November 2014
Particulars Unit
Approved in
Order dated
25.06.2013
Petitioner’s
submission
(actuals)
Approved in
Review for FY
2013-14
Auxiliary Consumption MU 3.50 2.75 2.75
Net Generation MU 346.50 272.24 272.24
GHEP
Gross Generation MU 50.10 34.50 34.50
Auxiliary Consumption % 0.70% 0.70% 0.70%
Auxiliary Consumption MU 0.35 0.24 0.24
Net Generation MU 49.75 34.26 34.26
Total Own Generation
Gross Generation MU 831.67 763.70 763.70
Auxiliary Consumption MU 8.17 7.53 7.53
Net Generation MU 823.50 756.17 756.17
5.3 Power Purchase
Petitioner’s submission
The Petitioner, in its Tariff Petition, has submitted the actual power purchase
quantum for FY 2013-14, as 598.45 MU. TSECL submitted that it has procured
power from NEEPCO and NHPC in FY 2013-14. Further, the Petitioner submitted
that Tripura has 80 MW of allocation from OTPC Palatana plant of 363 MW. One
Unit of the plant was operational from January, 2014, and hence, TSECL has
been procuring power from OTPC Palatana plant from January, 2014. The power
procurement in FY 2013-14 as submitted by TSECL, is as given in the Table
below:
Table 5-5: Power Purchase for FY 2013-14 as submitted by the Petitioner
(MU)
Source of Power Purchase Power Purchase
in FY 2013-14
NEEPCO 366.93
NHPC 67.90
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 92
November 2014
Source of Power Purchase Power Purchase
in FY 2013-14
OTPC Palatana 163.62
Total 598.45
Commission’s analysis
The Petitioner has submitted the actual power purchase quantum in FY 2013-14
as 598.45 MU. The Commission has verified the same with the actual month-wise
energy accounts submitted by the Petitioner for FY 2013-14. The Commission
observed that the month-wise energy accounts submitted by the Petitioner for FY
2013-14 shows the total power purchase of 600.62 MU. The Commission, in the
Review for FY 2013-14 in the previous Tariff Order dated June 25th, 2013, had
approved power purchase by TSECL as 693.07 MU for FY 2013-14. The
reduction in the actual power purchase as compared to the power purchase
approved by the Commission is on account of delay in generation from the OTPC
Palatana plant. Against the approved power purchase of 269.50 MU from OTPC
Palatana plant, the Petitioner could procure only 163.62 MU.
Further, in FY 2013-14, the Petitioner has procured 365.28 MU from NEEPCO,
which is marginally higher than the 364.29 MU approved by the Commission.
From NHPC, against the Commission’s approval for power purchase of 59.28 MU,
the Petitioner has procured higher quantum of 71.72 MU in FY 2013-14. Based on
the actual energy accounts submitted by the Petitioner, the Commission approves
the actual power purchase quantum of 600.62 MU for FY 2013-14, as shown in
the following Table:
Table 5-6: Approved Power Purchase for FY 2013-14
(MU)
Source of
Power Purchase
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Approved in
Review for FY
2013-14
NEEPCO 364.29 366.93 365.28
NHPC 59.28 67.90 71.72
OTPC Palatana 269.50 163.62 163.62
Total 693.07 598.45 600.62
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 93
November 2014
5.4 Transmission and Distribution Loss
Petitioner’s submission
The Petitioner submitted that the T&D loss in FY 2013-14 was 33.30%. TSECL
submitted that the actual T&D loss for FY 2013-14 has been higher than the T&D
loss approved the Commission in the previous Tariff Order, as in the last few
years, the LT:HT ratio of the network in the State has increased as a result of
extensive village electrification and addition of large number of LT consumers.
TSECL submitted that on completion of R-APDRP projects, the technical and
commercial losses of TSECL are expected to come down rapidly in the future, but
till then TSECL has to manage higher T&D loss in the network.
Commission’s analysis
The Commission observes that the T&D loss of 33.30% proposed by the
Petitioner for FY 2013-14 is substantially higher than the T&D loss of 22.00% for
FY 2013-14 approved by the Commission in the previous Tariff Order.
The Petitioner has contended that the increase in the T&D loss is a result of the
increased LT:HT ratio of its network on account of extensive village electrification
undertaken by the Petitioner. As elaborated by the Commission in Para 4.4 of this
Order, the analysis of actual length of the network of TSECL vis-a-vis T&D loss of
the previous years do not support such contention of the Petitioner. Despite the
increase in LT network, the LT:HT ratio of TSECL’s network has remained
constant at 1.71 since 2008-09 due to corresponding increase in the HT network
also. The Commission also observes that the total sales to Kutir Jyoti and
Domestic category consumers has increased significantly in the last few years,
which may be the result of the extensive village electrification undertaken by
TSECL. However, because of corresponding increase in the consumption of other
categories also, the total energy sales to Domestic and Kutir Jyoti category
consumers has remained constant at around 53-55% of the total energy sales of
TSECL.
In view of the above, the Commission has come to the conclusion that it cannot
allow the increased T&D loss for FY 2013-14 as proposed by TSECL. The
Commission approves the same T&D loss of 22% for FY 2013-14, as approved in
the previous Tariff Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 94
November 2014
Table 5-7: Approved T&D loss for FY 2013-14
Particular
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Approved in
Review for FY
2013-14
T&D loss 22.00% 33.30% 22.00%
5.5 Energy balance
Petitioner’s submission
Based on the energy sales, own generation and power purchase, the Petitioner
has submitted the energy balance for FY 2013-14, as shown in the following
Table:
Table 5-8: Energy Balance for FY 2013-14 as submitted by TSECL
Particulars Units
Petitioner’s
submission for
review of FY 2013-14
Energy Requirement
Energy Sales within State MU 712.27
Sales in bilateral trade/UI MU 285.06
T&D Losses MU 355.64
T&D Losses % 33.30%
Total Energy Requirement @
TSECL Periphery MU 1067.91
Energy Availability
Own Generation MU 756.17
Total Power Purchase MU 596.80
Gross Power Availability MU 1352.97
NER Loss MU 16.11
Net Power Availability MU 1336.86
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 95
November 2014
Commission’s analysis
The Commission observes that the NER loss of 16.11 MU reported by the
Petitioner is significantly lower than the NER loss of 30.19 MU approved by the
Commission for FY 2013-14 in the previous Tariff Order dated June 25th, 2013.
The Commission approves the NER loss of 16.11 MU submitted by the Petitioner
in the review of FY 2013-14.
Based on the approved energy sales, T&D loss, own generation and power
purchase, the Commission approves the energy balance for FY 2013-14, as
shown in the following Table:
Table 5-9: Approved energy balance for FY 2013-14
Particulars Unit
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
Approved in
Review for
FY 2013-14
Energy Requirement
Energy Sales within State MU 808.58 712.27 712.27
Sales in bilateral trade/UI MU 449.74 285.06 285.05
T&D Losses MU 228.06 355.64 200.90
T&D Losses % 22.00% 33.30% 22.00%
Total Energy
Requirement @ TSECL
Periphery
MU 1036.64 1067.91 913.17
Energy Availability
Own Generation MU 823.50 756.17 756.17
Total Power Purchase MU 693.07 596.80 600.62
Gross Power Availability MU 1516.57 1352.97 1356.78
NER Loss MU 30.19 16.11 16.11
Net Power Availability MU 1486.38 1336.86 1340.67
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 96
November 2014
5.6 Fuel purchase cost
Petitioner’s submission
The Petitioner, in its Petition, submitted the fuel purchase cost for FY 2013-14 as
Rs. 176.65 Crore, considering the average gas price of Rs. 6.01/SCM and specific
fuel consumption as 0.307 kg/kWh, as shown in the following Table:
Table 5-10: Fuel cost submitted by TSECL for FY 2013-14
Particular Unit
Petitioner’s
submission for
review of FY 2013-14
Gas consumed Tonnes 223,573.98
Units Generated MU 729.20
Specific fuel consumption Kg/kWh 0.307
Gas price Rs./SCM 6.01
Cost of gas Rs. Crore 176.65
Commission’s analysis
The Petitioner has submitted the fuel purchase cost for FY 2013-14 as Rs. 176.65
Crore, as against Rs. 187.98 Crore approved by the Commission in the previous
Tariff Order.
To verify the fuel purchase cost for FY 2013-14, the Commission directed the
Petitioner to submit month-wise and station-wise fuel cost along with the bills
raised by the suppliers. The Petitioner, in its reply to the data gaps, submitted the
fortnightly fuel purchase quantum and cost for FY 2013-14. However, the
Petitioner did not submit the bills raised by the fuel suppliers, namely, GAIL and
ONGC, to the Commission. The Commission observed that according to the
fortnightly data of fuel purchase quantum and cost submitted by the Petitioner, the
amount paid to the fuel suppliers is Rs. 178. 26 Crore, as shown in the following
Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 97
November 2014
Table 5-11: Actual fuel cost for FY 2013-14 as submitted by TSECL
Plant Particulars Unit TOTAL
RGTPP
Quantity of Gas MMSCM 189.96
Amount Rs. Crore 113.64
Average Price Rs./SCM 5.98
BGTPP
Quantity of Gas MMSCM 106.77
Amount Rs. Crore 64.52
Average Price Rs./SCM 6.04
Total Gas
Quantity of Gas MMSCM 296.73
Amount Rs. Crore 178.16
Average Price Rs./SCM 6.00
Subsequently, the Petitioner submitted the provisional annual accounts for FY
2013-14. The Commission observed that as per “Note No. 18” of the provisional
annual accounts for FY 2013-14 submitted by the Petitioner, the fuel purchase
cost incurred by TSECL in FY 2013-14 is Rs. 194.50 Crore, including the cost of
Rs. 0.10 Crore for purchase of HSD.
It is observed that the fuel purchase cost of Rs. 194.50 Crore, including Rs. 0.10
Crore pertaining to purchase of HSD, appearing in the provisional annual
accounts for FY 2013-14, is much higher than the actual cost of Rs. 176.65 Crore
submitted by the Petitioner for purchase of gas in FY 2013-14. Further, based on
the fortnightly break-up of gas purchase submitted by the Petitioner, the cost of
purchase of gas for FY 2013-14 works out to Rs. 178.16 Crore, which is
marginally higher than the gas purchase cost proposed by the Petitioner in the
Petition. In view of the same, the Commission approves the cost of purchase of
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 98
November 2014
gas for FY 2013-14 as Rs. 178.16 Crore, based on the break-up of actual fuel
purchase submitted by the Petitioner. In addition, the Commission approves the
cost of purchase of HSD in FY 2013-14 as Rs. 0.10 Crore, based on the
provisional annual accounts for FY 2013-14.
Table 5-12: Fuel purchase cost approved for FY 2013-14
(Rs. Crore)
Particular
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Provisional
accounts for
FY 2013-14
Approved in
Review of FY
2013-14
Fuel purchase cost 187.98 176.65 194.50 178.26
5.7 Power purchase cost
Petitioner’s submission
The Petitioner, in its Tariff Petition, has submitted the power purchase cost of Rs.
175.98 Crore for FY 2013-14. TSECL submitted that it had procured power from
NEEPCO and NHPC in FY 2013-14. Further, the Petitioner submitted that Tripura
has 80 MW of allocation from OTPC Palatana plant of 363 MW. One Unit of the
plant was operational from January, 2014 and TSECL has been procuring power
from OTPC Palatana plant from January, 2014. TSECL submitted the station-wise
actual power purchase cost for actual quantum of power purchased from stations
of NEEPCO and NHPC in FY 2013-14. Further, for power purchase from OTPC
Palatana plant, the Petitioner submitted its projection of power purchase cost
based on the Order of Central Electricity Regulatory Commission (CERC) dated
December 20th, 2013, in the matter of approval of provisional tariff for OTPC
palatana. Accordingly, TSECL submitted the power purchase cost for FY 2013-14,
as shown in the following Table:
Table 5-13: Actual power purchase cost for FY 2013-14 as submitted by TSECL
Plant Power
Purchase
Fixed
Charges
Variable
Charges
Total Power
Purchase Cost
MU Rs. Crore Rs. Crore Rs. Crore
Khandong 9.80 1.47 1.09 2.56
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 99
November 2014
Plant Power
Purchase
Fixed
Charges
Variable
Charges
Total Power
Purchase Cost
Kopili 41.08 2.09 1.87 3.96
Kopili St – II 7.18 0.60 0.67 1.27
AGTPP (Agartala) 105.25 12.91 26.24 39.15
AGBPP (Assam) 112.82 16.58 22.27 38.85
DHEP 16.06 3.27 3.34 6.61
RHEP 73.10 14.57 8.91 23.48
Total NEEPCO 365.28 51.49 64.39 115.88
Loktak HEP (NHPC) 67.90 18.49
OTPC Palatana 163.62 20.60 19.86 41.61
Total 598.45 72.09 84.25 175.98
Further, in its Petition, TSECL submitted the actual Transmission charges and
RLDC charges, as shown below:
Table 5-14: Actual Transmission Charges and RLDC charges for FY 2013-14 as submitted by TSECL
(Rs. Crore)
Particular Actual for FY 2013-14
PGCIL charges 23.75
POSOCO charges 0.84
Total charges 24.58
Commission’s analysis
In the previous Tariff Order, the Commission had approved the power purchase
cost excluding the transmission and RLDC charges as Rs. 199.35 Crore, for
purchase of 693.07 MU for FY 2013-14. Hence, the Commission had approved
the average rate for purchase of power by TSECL for FY 2013-14 as Rs. 2.88 per
kWh in the previous Tariff Order. TSECL has submitted the actual power
purchase cost as Rs. 175.98 Crore (including the transmission and RLDC
charges) for purchase of 598.45 MU, at the average rate of Rs. 2.94 per kWh. The
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 100
November 2014
Commission observed that in the energy accounts for FY 2013-14 submitted by
the Petitioner, the power purchase for FY 2013-14 was 600.62 MU as against
598.45 MU submitted by the Petitioner.
Further, the Commission had approved the Transmission charges and RLDC
charges of Rs. 28.91 Crore and Rs. 0.80 Crore, respectively, for FY 2013-14 in
the previous Tariff Order. In its Petition, TSECL has submitted the actual
transmission charges and RLDC charges as Rs. 23.75 Crore and Rs.0.84 Crore,
respectively, for FY 2013-14.
Vide the data gaps sent to the Petitioner, the Commission directed the Petitioner
to submit the month-wise and station-wise details of power purchase cost along
with the bills received by it for FY 2013-14. The Petitioner failed to submit the
month-wise and station-wise power purchase cost and bills raised by the
generating stations for sale of power to TSECL.
Subsequently, the Petitioner submitted the provisional annual accounts for FY
2013-14. As per the provisional annual accounts for FY 2013-14, the power
purchase cost for FY 2013-14 is Rs. 218.19 Crore.
In the absence of the month-wise power purchase cost along with the bills raised
by the generators, the Commission is unable to verify the actual power purchase
cost of TSECL for FY 2013-14. In view of the same, the Commission approves the
power purchase cost for FY 2013-14 as Rs. 218.19 Crore, based on the
provisional annual accounts submitted by TSECL. The Commission observes that
the power purchase cost of Rs. 218.19 Crore as appearing in the provisional
annual accounts for FY 2013-14 is significantly higher than the amount of Rs.
200.57 Crore proposed by the Petitioner towards purchase of power in FY 2013-
14. It is directed that at the time of truing up of FY 2013-14, the Petitioner should
submit the monthly breakup of power purchase cost supported by the bills raised
by the Generators.
Accordingly, the Commission approves the power purchase cost for FY 2013-14
as Rs. 218.19 Crore, as shown in the following Table:
Table 5-15: Approved power purchase cost for FY 2013-14
(Rs. Crore)
Particular
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Provisional
accounts for
FY 2013-14
Approved in
Review of FY
2013-14
Fuel purchase cost 224.65 200.57 218.19 218.19
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 101
November 2014
5.8 Operation and Maintenance (O&M) expenses
Petitioner’s submission
The Petitioner has submitted the O&M expenses for FY 2013-14 as Rs. 138.41
Crore , as shown in the Table below:
Table 5-16: O&M expenses for FY 2013-14 as submitted by the Petitioner
(Rs. Crore)
Particulars Petitioner’s
submission
Employee Expenses 100.11
Repair & Maintenance Expenses 23.29
Administrative & General Expenses 15.01
Total 138.41
The following section elaborates the component-wise analysis of the O&M
expenses:
5.8.1 Employee expenses
Petitioner’s submission
The Petitioner submitted that the employee expenses (including salaries, wages
and other benefits) for FY 2013-14 has been estimated by escalating the FY
2012-13 values at 9.76%, which is the average increase of the Consumer Price
Index (CPI) for FY 2010-11, FY 2011-12 and FY 2012-13. The Petitioner added
that it has estimated the function-wise employee cost increase for FY 2013-14.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved the employee
expenses at Rs. 102.91 Crore for FY 2013-14. The Petitioner, in its Petition, has
claimed employee expenses for FY 2013-14 as Rs. 100.11 Crore as.
As per “Note No. 19” of the provisional annual accounts for FY 2013-14 submitted
by the Petitioner, the Employee Expense is 101.78 Crore, which is marginally
lower than the employee expense of Rs. 102.91 Crore approved by the
Commission in the previous Tariff Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 102
November 2014
Accordingly, the Commission approves the employee expenses for FY 2013-14 as
Rs. 101.78 Crore.
5.8.2 Repair and Maintenance (R&M) expenses
Petitioner’s submission
The Petitioner submitted that the R&M expenses for FY 2013-14 has been
estimated by escalating the FY 2012-13 values at 8.62%, which is the average
increase of the Wholesale Pice Index (WPI) for FY 2010-11, FY 2011-12 and FY
2012-13. Based on the same, TSECL submitted the R&M Expenses for FY 2013-
14 as Rs. 23.29 Crore. The Petitioner has submitted the function-wise R&M
increase for FY 2013-14 and requested the Commission to approve the same.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved the R&M expenses at
Rs. 15.83 Crore for FY 2013-14. The Petitioner, in its Petition, has submitted the
R&M expenses for FY 2013-14 as Rs. 23.29 Crore.
As per “Note No. 21” of the provisional annual accounts for FY 2013-14 submitted
by the Petitioner, the R&M Expense is Rs. 28.42 Crore.
Accordingly, the Commission approves R&M expenses of Rs. 28.42 Crore in the
review of FY 2013-14.
5.8.3 Administrative & General (A&G) expenses
Petitioner’s submission
The Petitioner submitted that the A&G expenses for FY 2013-14 have been
estimated by escalating the FY 2012-13 values at 8.62%, which is the average
increase of the WPI for FY 2010-11, FY 2011-12 and FY 2012-13. Based on the
same, the Petitioner claimed the A&G expenses for FY 2013-14 as Rs. 15.01
Crore. The Petitioner submitted the function-wise A&G expense increase for FY
2013-14 and requested the Commission to approve the same.
Commission’s analysis
The Commission, in its previous Tariff Order, had approved the A&G expenses for
FY 2013-14 at Rs. 16.51 Crore. The Petitioner, in its Petition, has submitted the
A&G expenses for FY 2013-14 as Rs. 15.01 Crore.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 103
November 2014
As per “Note No. 21” of the provisional annual accounts for FY 2013-14 submitted
by the Petitioner, the A&G Expense for FY 2013-14 is Rs. 14.51 Crore, which is
lower than the A&G expenses approved by the Commission in the Tariff Order for
FY 2013-14.
Accordingly, the Commission approves the A&G expenses of Rs. 14.51 Crore in
the review of FY 2013-14.
Based on the approval of employee expenses, R&M expenses and A&G
expenses for FY 2013-14 as mentioned above, the Commission approves the
O&M expenses for TSECL as Rs. 144.51 Crore in the review of FY 2013-14, as
shown in the following Table:
Table 5-17: O&M expenses approved for FY 2013-14
(Rs. Crore)
Particulars
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Petitioner’s
submission
Approved
in review
of FY
2013-14
Employee Expense 102.91 100.11 101.78 101.78
Repair and
Maintenance
Expenses
15.83 23.29 28.42 28.42
Administrative and
General Expenses 16.51 15.01 14.51 14.51
Total 135.25 138.41 144.71 144.71
5.9 Depreciation
Petitioner’s submission
The Petitioner submitted that the Gross Fixed Assets have been taken from
provisional accounts for FY 2012-13. The Petitioner further added that function-
wise GFA has been used to estimate the GFA added in FY 2013-14. Based on the
same, the GFA and depreciation for FY 2013-14 as submitted by the Petitioner is
given in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 104
November 2014
Table 5-18: Depreciation claimed by the Petitioner for FY 2013-14 (Rs. Crore)
Asset Particulars GFA Depreciation
Rate Depreciation
Land 52.57 0.00% 0
Building 26.78 2.49% 0.67
Plant and Machinery 752.53 5.28% 39.73
Computer 0.52 16.21% 0.08
Computer and Office Equipment 2.52 16.21% 0.41
Office Equipment 0.14 16.21% 0.02
Furniture 1.13 6.33% 0.07
Vehicles 0.41 9.50% 0.04
Grand Total 836.61 41.03
Accordingly, the Petitioner, in its Petition, requested the Commission to approve
depreciation of Rs. 41.03 Crore as against Rs. 24.31 Crore approved by the
Commission in the Tariff Order dated June 25th, 2013.
However, in its subsequent submission, the Petitioner submitted the depreciation
for FY 2013-14 as Rs. 21.55 Crore, as shown in the following Table:
Table 5-19: Revised computation of depreciation for FY 2013-14 as submitted by TSECL
(Rs. Crore)
Asset Particulars GFA for FY 2013-14 Depreciation
Rate
Depreciation for
FY 2013-14
Land 27.48 0.00% -
Building 14.04 2.49% 0.35
Plant & Machinery 396.24 5.28% 20.92
Computer 0.24 16.21% 0.04
Computer and Office
Equipment 1.10 16.21% 0.18
Office Equipment 0.07 16.21% 0.01
Furniture 0.59 6.33% 0.04
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 105
November 2014
Asset Particulars GFA for FY 2013-14 Depreciation
Rate
Depreciation for
FY 2013-14
Vehicles 0.17 9.50% 0.02
Total GFA Closing 439.92 21.55
Commission’s analysis
The depreciation computed by the Petitioner for FY 2013-14 is not based on the
Fixed Assets Register audited by the Statutory Auditor, however, as discussed in
detail in the section on truing-up for FY 2012-13, the Commission has
provisionally considered the GFA and depreciation as per the Petitioner’s
submission based on the depreciation rates specified in the Companies Act and
Straight Line Method (SLM) in accordance with the Regulations. Further, it is to be
noted that although the Commission has provisionally considered the GFA for FY
2013-14, the same shall be reviewed based on the Petitioner’s submission of fixed
asset registers and depreciation registers.
In view of the above, the Commission allows depreciation of Rs. 21.55 Crore for
FY 2013-14, as claimed by the Petitioner, as shown in the Table below:
Table 5-20: Depreciation approved for FY 2013-14
(Rs. Crore)
Particulars
Approved in
Order dated
25.06.2013
Petitioner’s
submission
As per
annual
accounts
Approved in
review for
FY 2013-14
Depreciation 24.31 21.55 48.75 21.55
5.10 Interest and Finance Charges
Petitioner’s submission
The Petitioner submitted that the gross normative opening loan has been taken
from the provisional accounts for FY 2012-13. The following Table shows the
opening loan for FY 2013-14, as submitted by the Petitioner:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 106
November 2014
Table 5-21: Opening loans for FY 2013-14 as submitted by TSECL
(Rs. Crore)
Particulars FY 2013-14
Secured Loan
PFC Loan 60.09
Unsecured Loan
Interest free Loan from Government of
Tripura 60.34
Loan from REC 42.45
Others 41.53
Total 204.41
Considering the opening loan from various sources, the interest and finance
charges for FY 2013-14 as submitted by the Petitioner, is shown in the following
Table:
Table 5-22: Interest and finance charges for FY 2013-14 as submitted by TSECL
(Rs. Crore)
Particulars FY 2013-14
Opening Loan 204.40
Addition of Assets 20.52
Depreciation 41.03
Closing Loan 183.89
Interest 16.62
Accordingly, the Petitioner has requested the Commission to approve the interest
and finance charges of Rs. 16.62 Crore for FY 2013-14 as against Rs. 0.34 Crore
approved by the Commission in the Tariff Order dated June 25th, 2013 for FY
2013-14.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 107
November 2014
Commission’s analysis
The Commission had approved Rs. 0.34 Crore as interest and finance charges for
FY 2013-14 in the previous Tariff Order. The Commission observes that the
interest on capital loan amounting to Rs. 16.62 Crore as submitted by TSECL has
been arrived on normative basis. However, according to “Note No. 20” of the
provisional annual accounts for FY 2013-14, the Petitioner has not paid any
amount as interest and finance charges in FY 2013-14.
Since, the provisional annual accounts of FY 2013-14 confirms that no payment of
interest and finance charges has been made by the Petitioner in FY 2013-14, the
Commission approves the interest and finance charges as nil, in the review of FY
2013-14.
The Commission accordingly, approves the Interest and Finance charges as nil
for FY 2013-14, as shown in the Table below:
Table 5-23: Interest and Finance Charges approved for FY 2013-14
(Rs. Crore)
Particulars
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
Provisional
accounts for
FY 2013-14
Approved in
review for FY
2013-14
Interest and
Finance charges 0.34 16.62 0.00 0.00
5.11 Interest on Working Capital
Petitioner’s submission
The Petitioner submitted that owing to the deteriorating financial health of the
Corporation, it may incur working capital crunch and hence, it has claimed interest
on working capital on normative basis as given in Tariff Regulations, 2004. The
Petitioner submitted that it has cash at its disposal, which is depleting
continuously due to working capital requirement and TSECL may not be able to
use the cash for other capital works in the future. The Petitioner further submitted
that forgone opportunity by not claiming working capital interest and using the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 108
November 2014
cash reserve results in depletion of cash reserves. The Petitioner added that there
is an opportunity cost involved in using cash for working capital as the Utility could
have invested this cash in securities or bank deposits, hence, it has proposed to
claim Interest on Working capital.
The Petitioner submitted that the working capital requirement has been estimated
for calculating the normative interest charges to be allowed for financing the
working capital requirement. The Petitioner added that as per TERC Tariff
Regulations 2004, the working capital norms have been defined separately for
generation, transmission and distribution functions.
The Petitioner submitted that the Commission, in the previous Tariff Orders, had
disallowed interest on working capital requirement and requested the Commission
to allow working capital borrowings. The Petitioner submitted that currently it is not
able to meet the cash flow demand owing to working capital shortage and it has
resulted in late payments to the Central Generating Stations.
The considerations for calculation of working capital and interest thereon, along
with interest on working capital as submitted by the Petitioner, are summarized in
the Table below:
Table 5-24: Interest on Working Capital as submitted by the Petitioner for FY 2013-14
(Rs. Crore)
Particulars Share of GFA Norm (Days) FY 2013-14
Generation 31% 45 17.99
Transmission 7% 45 4.02
Distribution 61% 60 49.96
Total 71.97
Interest Rate 14.50%
Interest on working capital 10.36
Accordingly, the Petitioner has requested the Commission to approve interest on
working capital of Rs. 10.36 Crore as against Nil approved by the Commission in
the Tariff Order dated June 25th, 2013.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 109
November 2014
Commission’s analysis
The Commission has examined the computation of interest on working capital
submitted by the Petitioner.
However, as mentioned above, the Tariff Regulations allow for interest on working
capital limited to actual. Further, from the provisional annual accounts for FY
2013-14, the Commission has observed that the Petitioner has not paid any
interest cost towards working capital loan borrowed from the Banks/Financial
Institutions.
The Commission, accordingly, approves the interest on working capital as nil in
the review of FY 2013-14, as shown in the following Table:
Table 5-25: Interest on working capital approved for FY 2013-14
Particulars
Approved
in Order
dated
25.06.2014
Petitioner’s
submission
Provisional
accounts
for FY
2013-14
Approved
in review
of FY 2013-
14
Interest on working
capital 0.00 10.36 0.00 0.00
5.12 Reasonable Return
Petitioner’s submission
The Petitioner submitted that as per TERC Tariff Regulations 2004, reasonable
return is to be calculated at 5% above the ruling RBI rate or 3% over PLR rate of
SBI or average of any three nationalized banks, whichever is higher. The
Petitioner submitted that it has been observed that the SBI PLR rate as on
November 7th, 2013 was 14.75%, thus, for calculation of reasonable return, the
rate of return for overall paid-up equity capital has been assumed to be 17.75%,
i.e., 3% over SBI PLR.
The Petitioner submitted that as per Note No 1 of provisional annual accounts for
FY 2012-13, the paid up equity is Rs. 65475.39 Lakh and it has received Rs. 5.00
Crore as government equity in FY 2013-14.
The Petitioner submitted that for calculation of reasonable return, the rate of return
for overall paid-up equity capital has been assumed to be 17.75%. The
reasonable return computed on projected paid up capital as submitted by the
Petitioner, is summarized in the Table given below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 110
November 2014
Table 5-26: Reasonable Return submitted by the Petitioner for review of FY 2013-14
(Rs. Crore)
Particulars Revised Submission
for FY 2013-14
Equity Capital as on April 1st, 2013 170.41
Equity Capital as on March 31st, 2014 175.41
Average Equity capital during FY 2013-14 172.91
Rate of Reasonable return 17.75%
Reasonable return during the year 30.69
Thus, the Petitioner has claimed reasonable return of Rs. 30.69 Crore as against
Rs. 16.52 Crore approved by the Commission in the Tariff Order dated June 25th,
2013.
Commission’s analysis
The Commission had approved the reasonable return for FY 2013-14 as Rs.
16.52 Crore. The Commission has observed that the Petitioner has computed the
reasonable return by considering 17.75% interest rate on the total equity of
TSECL. As per the TERC Tariff Regulations 2004, the reasonable rate of return is
to be calculated separately for the generation, transmission and distribution
business. While calculating the reasonable return for FY 2013-14, the Petitioner
has not segregated the average equity into generation, transmission and
distribution businesses.
Therefore, the computation of the reasonable return submitted by the Petitioner is
not as per TERC Tariff Regulations, 2004.
From the provisional Annual accounts of the Petitioner for FY 2013-14, it is
observed that the paid up equity as on March 31st, 2014 is equal to Rs. 654.75
Crore. The Petitioner has also claimed that it has received additional Rs. 5.00
Crore as government equity in FY 2013-14, however, the same is not confirmed
by the provisional annual accounts of the Petitioner, which do not show any
increase in the paid up equity capital in FY 2013-14.
Against the paid up equity capital of Rs. 654.75 Crore as on March 31st, 2014, the
Net Fixed Assets appearing in the provisional annual accounts as on March 31st,
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 111
November 2014
2013 are Rs. 640.49 Crore. As stated earlier, in the power industry in India, the
debt:equity ratio is considered as 70:30 after deducting the amount of assets that
have been funded through grants or consumer contribution. In other words, equity
capital is capped at 30% of the total assets of the utility, after deducting the
amount of assets that have been funded through grants or consumer contribution.
Hence, if the equity portion is more than 30% of the fixed assets added, Return on
Equity is provided considering the equity as 30% of the fixed assets added by the
utility. In case of TSECL, most of the assets are funded through grants or
consumer contribution. Moreover, the provisional annual accounts of TSECL for
FY 2012-13 also show that the equity shares have been issued to the
Government of Tripura for amount equivalent to Rs. 554.96 Crore, without receipt
of any payment in cash, and have been issued pursuant to the GoT notification
regarding transfer of assets. Hence, the amount of paid up equity capital reflected
in the provisional annual accounts of TSECL may not qualify for being considered
as 'paid up equity capital' in accordance with the TERC Tariff Regulations, 2004,
since, the same have not been paid for.
Hence, the Commission has capped the equity of TSECL as on March 31st, 2014
as Rs. 204.30 Crore, i.e., same as that considered for FY 2012-13.
As per TERC Tariff Regulations 2004, the Commission in its previous Tariff Order
had considered interest rates at 15.23%, 14.23% and 15.23%, respectively, for
generation, transmission and distribution businesses. Since, the Petitioner has not
provided the break-up of the equity for generation, transmission and distribution
functions, it is difficult for the Commission to arrive at the normative reasonable
return of the Petitioner as per the TERC Tariff Regulations, 2004. Thus, for review
of FY 2013-14, the Commission has considered the break-up of equity in
generation, transmission and distribution in the same proportion as the proportion
of GFA submitted by the Petitioner. Accordingly, the Commission has computed
the average equity for FY 2013-14 of TSECL in the generation, transmission and
distribution assets. Further, the Commission has considered the same interest
rates as considered in the previous Order, for the purpose of review for FY 2013-
14.
Accordingly, the reasonable return approved by the Commission in the review of
FY 2013-14, is shown in the Table below:
Table 5-27: Reasonable Return approved by the Commission for FY 2013-14
(Rs. Crore)
Particulars Average Equity Interest Rate Reasonable
Return
Generation 64.40 15.23% 9.81
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 112
November 2014
Particulars Average Equity Interest Rate Reasonable
Return
Transmission 14.84 14.23% 2.11
Distribution 125.45 15.23% 19.11
Total 204.70 31.03
5.13 Non-Tariff Income
Petitioner’s submission
The Petitioner has included the inter-State sale of energy in the non-tariff income
for FY 2013-14. The Commission has approved the revenue from inter-State sale
of energy separately and has excluded the same from the non-tariff income.
The details of non-tariff income as submitted by the Petitioner (excluding the
revenue from inter-State sales), is shown in the Table below:
Table 5-28: Non Tariff Income submitted by the Petitioner for FY 2013-14
(Rs. Crore)
Particulars Revised submission for
FY 2013-14
Interest from Bank Deposits 38.01
Service Connection Charges 3.19
Total 41.20
Accordingly, the Petitioner has requested the Commission to approve Non-Tariff
Income of Rs. 41.20 crore in the review of FY 2013-14.
Commission’s analysis
The Petitioner has submitted the non-tariff income of Rs. 41.20 Crore for FY 2013-
14 as against Rs. 42.01 Crore approved by the Commission in the previous Tariff
Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 113
November 2014
As per the provisional annual accounts for FY 2013-14, the non-tariff income for
TSECL for FY 2013-14 is Rs. 35.40 Crore.
The Commission accordingly approves the non-tariff income of Rs. 35.40 Crore in
the review of FY 2013-14, as shown in the Table below:
Table 5-29: Non Tariff Income submitted by the Petitioner for truing up of FY 2012-13
(Rs. Crore)
Particulars
Approved in
the Order
25.06.2013
Petitioner’s
submission
Provisional
accounts of
FY 2013-14
Approved in
review of FY
2013-14
Interest Income 38.11 38.01 25.29 25.29
Other charges 1.56 0.00 5.56 5.56
Service Connection
Charges 2.34 3.19 4.55 4.55
Total 42.01 41.20 35.40 35.40
5.14 ARR for FY 2013-14
Based on the review of the various components of the ARR for FY 2013-14 in the
previous paragraphs, the Commission approves the ARR as Rs. 511.36 Crore in
the review of FY 2013-14, as shown in the following Table:
Table 5-30: Approved ARR for FY 2013-14
(Rs. Crore)
Particulars
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
As per
provisional
Annual
Accounts
Approved
in review of
FY 2013-14
Fuel cost 187.98 176.65 194.50 178.26
Power purchase cost 224.65 200.57 218.19 218.19
O&M expenses 135.25 138.41 144.71 144.71
Depreciation 24.31 21.55 48.75 21.55
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 114
November 2014
Particulars
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
As per
provisional
Annual
Accounts
Approved
in review of
FY 2013-14
Interest on working
capital 0.00 10.36 0.00 0.00
Interest and finance
charges 0.34 16.62 0.00 0.00
Reasonable Return 16.52 30.69 0.00 31.03
Aggregate Revenue
Requirement (ARR) 589.05 594.85 606.15 593.74
Less: non-tariff income 42.01 41.20 35.40 35.40
Net Aggregate
Revenue
Requirement
547.04 553.65 570.75 558.34
5.15 Revenue from sale of power
Petitioner’s submission
The Petitioner has submitted the revenue earned from sale of power in FY 2013-
14 as Rs. 424.62 Crore, as shown in the following Table:
Table: 5-31: Revenue from sale of power for FY 2013-14 as submitted by TSECL
Particulars Sales
(MU)
Revenue
(Rs. Crore)
Intra-State sales of power 712.27 364.00
Sale to Manipur and Mizoram 128.58 19.00
Energy Trading and UI 156.47 41.62
Total Inter-State Sales 285.05 60.62
Total Sale of Power by TSECL 997.33 424.62
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 115
November 2014
Commission’s analysis
Revenue from intra-State sale of energy in FY 2013-14
In the Tariff Order for FY 2013-14, the Commission had approved the revenue of
Rs. 378.95 Crore from intra-State sales of 808.58 MU at the average rate of Rs.
4.69 per kWh. According to the Petitioner’s submissions, the actual intra-State
sale in FY 2013-14 was 712.27 MU as against 808.58 MU approved by the
Commission in the Tariff Order. The Petitioner, in its Petition, has submitted that it
has earned revenue of Rs. 364.00 Crore from such intra-State sale at an average
rate of Rs. 5.11 kWh. The Commission observes that the average rate submitted
by the Petitioner for intra-State sales in FY 2013-14 is significantly higher than the
average rate approved by the Commission in the Tariff Order for FY 2013-14.
Revenue from inter-State sale of energy in FY 2013-14
The Petitioner submitted the revenue from inter-State sales as Rs. 60.62 Crore for
sale of 285.05 MU. Hence, the average rate for inter-State sales in FY 2013-14
was only Rs. 2.13 per kWh based on the submission of the Petitioner. The
Commission, in its Tariff Order for FY 2013-14, had approved the average rate for
inter-State sale as Rs. 4.05 per kWh, and approved revenue of Rs. 182.08 Crore
against sales of 449.74 MU for FY 2013-14. The Commission observes that the
average billing rate of Rs. 2.13 per kWh from inter-State sales as submitted by
TSECL is too low compared to the average rate of Rs. 4.05 per kWh approved by
the Commission in the previous Tariff Order.
It is observed that the Petitioner has submitted revenue from sale of 128.58 MU to
Manipur and Mizoram as Rs. 19.00 Crore. Hence, according to the submission of
the Petitioner, average rate for sale to Manipur and Mizoram is only Rs. 1.43 per
kWh as against the average billing rate of Rs. 3.10 per kWh approved by the
Commission in the Tariff Order for FY 2013-14. However, in the detailed
submissions of the Petitioner in reply to the data gaps sent by the Commission,
the Petitioner has submitted the revenue from sale of power to Manipur and
Mizoram as Rs. 41.18 Crore. The Commission has verified the aforementioned
submission of the Petitioner with the actual monthly billing data submitted by the
Petitioner for energy sold to Manipur and Mizoram. The Commission observed
that according to the monthly billing data, the Petitioner has billed Rs. 41.18 Crore
to Manipur and Mizoram for sale of energy in FY 2013-14.
Further, as per the Petitioner’s submission, the average rate from energy traded
or sold as Unscheduled Interchange is Rs. 2.66 per kWh, as it has sold 156.47
MU for Rs. 41.62 Crore. The Commission observes that the average rate of Rs.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 116
November 2014
2.66 per kWh from such sale is significantly lower than the average rate of Rs.
4.50 per kWh approved by the Commission in the previous Tariff Order.
The Commission has verified the revenue from sale of power for FY 2013-14 from
the provisional accounts of FY 2013-14. As per the provisional accounts for FY
2013-14, the Petitioner has earned Rs. 451.87 Crore from the intra-State and
inter-State sale of power in FY 2013-14. Accordingly, the Commission approves
the revenue from sale of power as Rs. 451.87 Crore in the review of FY 2013-14.
Further, the Commission observes that due to higher gross energy requirement
for intra-State sales on account of higher T&D loss in the network of TSECL,
TSECL has been able to sell lesser amount of energy outside the State of Tripura
as compared to the inter-State energy Sales approved by the Commission in the
previous Tariff Order. The Commission has dealt with revenue loss on account of
the same in the relevant paragaphs regarding “Receivable for energy not sold or
lost in the system", in accordance with the TERC Tariff Regulations, 2004.
In view of the above, the Commission approves the revenue from sale of power in
FY 2013-14 as Rs. 451.87 Crore, as shown in the following Table.
Table 5-32: Approved revenue from sale of power for FY 2013-14
(Rs. Crore)
Particulars
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Provisional
accounts for
FY 2013-14
Approved in
Review of
FY 2013-14
Total Revenue from
sale of Power 561.03 424.62 451.87 451.87
5.16 Revenue Subsidy from Government of Tripura
In the previous Tariff Order dated June 25th, 2013, for determination of ARR and
tariff for FY 2013-14, the Commission had not approved any revenue subsidy from
GoT. In its Petition, TSECL submitted that it has received Rs. 40.00 Crore as
revenue subsidy from GoT, which is also confirmed by the provisional annual
accounts for FY 2013-14. The Commission approves the revenue subsidy from
GoT as Rs. 40.00 Crore in the review of FY 2013-14.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 117
November 2014
Table 5-33: Approved revenue subsidy from Government of Tripura
Particulars
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
Provisional
accounts
for FY
2013-14
Approved in
Review of
FY 2013-14
Revenue from
Subsidy from GoT
(Rs. Crore)
- 40.00 40.00 40.00
5.17 Receivable for energy not sold or lost in the system
As elaborated in the Chapter 4 of this Order, Clause (5)(1)(i) of the TERC Tariff
Regulations, 2004 specifies that the income of the licensee shall also include
receivable for energy not sold or lost in the system.
In view of the aforementioned Regulations of the TERC Tariff Regulations, 2004,
and based on the approved own generation, sales and energy balance for FY
2013-14, the Commission has determined the energy not sold or lost in the
system for FY 2013-14 as 142.45 MU, as shown in the following Table:
Table 5-34: Energy not sold or lost in the system for FY 2012-13
(MU)
Particulars Derivation FY 2013-14
Gross own generation A 763.70
Total Power Purchase B 600.62
Gross energy availability C=A+B 1364.32
Energy sales within State D 712.27
Energy sales outside the State E 285.05
Total energy sales F=D+E 997.32
Gross energy not sold G=C-F 367.00
Permissible self consumption (equal to the
auxiliary consumption of own generation) H 7.53
Permissible T&D loss I 200.90
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 118
November 2014
Particulars Derivation FY 2013-14
NER Loss J 16.11
Energy not sold or lost in the system G=H-I-J 142.45
Accordingly, based on the provisions of the TERC Tariff Regulations, 2004, the
Commission has computed the receivable for the energy not sold or lost in the
system for FY 2013-14 as Rs. 46.97 Crore and has included the same while
determining the revenue gap/surplus for FY 2013-14:
Table 5-35: Approved receivable for the energy not sold or lost in the system for FY 2013-14
Particulars Unit Derivation Approved for
FY 2013-14
Fuel cost Rs. Crore A 178.26
Total energy generated (from fuel
based plants) MU B 721.91
Total Power Purchase cost Rs. Crore C 218.19
Total power purchase quantum MU D 600.62
Total fuel and power purchase cost Rs. Crore E=A+C 396.45
Total energy quantum (own
generation + power purchase) MU F = B+D 1322.52
Average fuel and power purchase
cost Rs./kWh G=(Ex10)/F 3.00
10% margin on the average fuel and
power purchase cost, to cover other
costs
Rs./kWh H=10% of G 0.30
Per unit rate for energy not sold or
lost in the system Rs./kWh I=G+H 3.30
Energy not sold or lost in the
system MU J 142.45
Receivable for Energy not sold or
lost in the system
Rs.
Crore K=IxJ/10 46.97
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 119
November 2014
5.18 Revenue for FY 2013-14
Considering the approved amounts of revenue from sale of power, revenue
subsidy from GoT and receivable for energy not sold or lost in the system, the
Commission approves the total revenue of Rs. 538.84 Crore in the review of FY
2013-14, as shown in the Table below:
Table 5-36: Approved total revenue for FY 2013-14
(Rs. Crore)
Particulars
Approved
in Order
dated
25.06.2013
Petitioner’s
submission
Provisional
accounts
for FY
2013-14
Approved in
Review of FY
2013-14
Revenue from sale of
Power 561.03 424.62 451.87 451.87
Revenue Subsidy
from GoT - 40.00 40.00 40.00
Receivable for
energy not sold or
lost in the system
- - - 46.97
Total Revenue 561.03 464.62 491.87 538.84
5.19 Revenue gap/surplus
Based on the approved Aggregate Revenue Requirement and total Revenue for
FY 2013-14, the Commission approves the revenue gap for FY 2013-14 as Rs.
19.49 Crore, as shown below:
Table 5-37: Approved revenue gap/surplus for FY 2013-14
(Rs. Crore)
Particulars
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Approved in
Review of FY
2013-14
Net Aggregate Revenue 547.04 553.65 558.34
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 120
November 2014
Particulars
Approved in
Order dated
25.06.2013
Petitioner’s
submission
Approved in
Review of FY
2013-14
Requirement
Total revenue 561.03 464.62 538.84
Revenue gap/(surplus) (13.99) 89.03 19.49
The revenue gap of Rs. 19.49 crore has been added to the revenue requirement
of FY 2014-15, as elaborated in subsequent Chapters of this Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 121
November 2014
6 Aggregate Revenue Requirement (ARR) for FY 2014-
15
This Chapter deals with determination of the Aggregate Revenue Requirement
(ARR) for FY 2014-15.
6.1 Energy Sales
6.1.1 Petitioner’s approach
The Petitioner has forecasted the category-wise energy sales by considering
growth in sales to the consumer categories over the actual sales of FY 2013-14
based on the historical category-wise growth in sales, as shown in the following
Table. Using these growth rates, the Petitioner has projected the total energy
sales of 855.14 MU for FY 2014-15, as shown in the Table below:
Table 6-1: Energy Sales projected by TSECL for FY 2014-15 (MU)
Consumer Category FY 11 FY 12 FY 13 FY 14 Growth
Rate
Projection
for FY
2014-15
Kutir Jyoti 18.02 16.66 17.62 18.00 15.00% 20.70
Domestic 290.80 324.41 347.86 372.40 25.00% 465.49
Commercial 54.23 60.35 67.18 64.66 15.00% 74.35
LT Industrial 30.76 31.29 37.99 15.07 25.00% 18.83
HT Industrial
22.00 10.00% 24.00
Bulk Supply 60.74 88.65 79.18 87.40 30.00% 113.62
Tea, Coffee & Rubber
garden 0.55 0.61 0.67 0.69 20.00% 0.83
Irrigation 37.55 28.81 36.40 29.55 0.00% 29.55
Public Water works 48.09 47.70 62.41 67.50 0.00% 67.50
Public Lighting 28.10 25.60 33.74 35.00 15.00% 40.25
TOTAL 568.84 624.08 683.05 712.27 855.14
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 122
November 2014
6.1.2 Consumer Profile and Connected Load
The Petitioner has submitted the category-wise number of consumers for the
previous years since 2010-11. The Petitioner has assumed 9% growth rate across
all consumer categories, except public water works, domestic and industrial
categories for projection of number of consumers for FY 2014-15. For projection
of the number of consumers for public water works, domestic and industrial
categories, the growth rate of 10%, 15%, and 10%, respectively, has been
assumed by the Petitioner to estimate the number of consumers for FY 2014-15.
Actual number of consumers in the past years and projection of number of
consumers for FY 2014-15, as submitted by the Petitioner, is given below:
Table 6-2: Category-wise number of consumers as submitted by TSECL
Consumer Category FY 2010-
11
FY 2011-
12
FY 2012-
13
FY 2013-
14
FY 2014-15
(Projection)
Kutir Jyoti 54,704 61,028 65,354 67,844 73,950
Domestic 378,156 410,647 441,680 473,761 544,825
Commercial 41,958 44,042 46,586 50,623 55,179
LT Industrial 4,306 4,578 4,744 5,006 5,507
HT Industrial
5 5
Bulk Supply 625 818 947 718 783
Tea, Coffee & Rubber
garden 30 29 29 37 40
Irrigation 4,201 4,321 4,674 4,713 5,137
Public Water works 2,646 3,232 3,748 4,533 4,986
Public Lighting 1,081 1,122 1,288 1,206 1,315
TOTAL 487,707 529,817 569,050 608,446 691,727
Vide its submission in reply to the data gaps sent by the Commission, the
Petitioner submitted the data of Connected Load from FY 2011-12 to FY 2013-14
and projection of Connected Load for FY 2014-15, as shown below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 123
November 2014
Table 6-3: Consumer category-wise connected load as submitted by TSECL
(MW)
Consumer Categories 2011-12 2012-13 2013-14 2014-15
(Projected)
Kutir Jyoti 8.39 10.00 12.00
Domestic 122.03 132.48 148.73 193.26
Commercial 26.03 27.67 29.83 31.43
Mobile Towers 17.82
Irrigation 16.51 19.51 23.06 23.19
Public water works 28.99 34.27 67.50 88.11
Industrial 60.66 61.96 68.31 84.42
Tea, coffee & rubber
garden 0.56 0.56 0.56 0.77
Bulk supply 27.46 29.47 87.40 85.70
Public lighting 5.63 6.32 7.01 7.74
Grand Total 296.26 322.23 432.40 532.43
6.1.3 Commission’s approach
The Commission has adopted a more consistent approach to determine the
projected energy sales for FY 2014-15. The Commission’s approach is based on
the trend analysis of energy sales in the past years, which is a reasonably
accurate and well-accepted method for estimating the energy sales. The
Commission has projected the energy sales based on the Compounded Annual
Growth Rate (CAGR) of sales during the past years. Wherever the CAGR has
seemed unsustainable, the growth rates have been adjusted to arrive at more
realistic projections.
6.1.4 Category-wise energy sales for previous years
The Commission has considered the category-wise sales for TSECL for the past
six years as shown in the Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 124
November 2014
Table 6-4: Actual category-wise sales for TSECL in previous years
Consumer Category FY 09 FY 10 FY 11 FY 12 FY 13 FY 14
Kutir Jyoti 10.96 12.03 18.02 16.66 17.62 18.00
Domestic 230.89 250.21 290.80 324.41 347.86 372.40
Commercial 41.02 46.65 54.23 60.35 67.18 64.66
Industrial (HT<) 31.80 30.21 30.76 31.29 37.99 37.07
Bulk Supply 44.81 46.44 60.74 88.65 79.18 87.40
Tea, Coffee & rubber garden 0.44 0.48 0.55 0.61 0.67 0.69
Irrigation
90.94
39.73 37.55 28.81 36.40 29.55
Public Water works 44.39 48.09 47.70 62.41 67.50
Public Lighting 22.66 26.06 23.74 33.74 35.00
Special Public Utility 1.77 2.04 1.86
TOTAL 450.86 494.57 568.84 624.08 683.05 712.27
6.2 Detailed analysis of category-wise energy sales
(A) Kutir Jyoti (BPL)
Petitioner’s submission
The Petitioner has submitted that at the end of FY 2012-13, it had 67,844 Kutir
Jyoti consumers. The Petitioner has projected an addition of 6,106 Kutir Jyoti
connections in FY 2014-15. Hence, the Petitioner would be supplying to 73,950
Kutir Jyoti connections in FY 2014-15 according to the submissions in the Petition.
The Petitioner has shown the energy sales in FY 2013-14 to the Kutir Jyoti
consumers at 18.00 MU. The Petitioner has considered 15.00% growth in energy
sales to the Kutir Jyoti category in FY 2014-15, and has projected the total energy
sales to this category at 20.70 MU.
Commission’s analysis
The Commission understands that the energy consumption by the kutir jyoti
consumer category estimated by the Petitioner is on the higher side. Further the
maximum allowable consumption by a Kutir Jyoti consumer is capped, and if the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 125
November 2014
consumption of a Kutir Jyoti consumer is beyond such limit, the consumer is to
charged at tariff applicable to Domestic category.
In view of the above, the Commission approves the energy sales to the Kutir
Jyoti category as 13.56 MU for FY 2014-15.
(B) Domestic
Petitioner’s submission
The Petitioner has shown the actual energy sales in FY 2013-14 to the Domestic
category as 372.40 MU. The Petitioner has considered 25% growth in energy
sales to the Domestic category for FY 2014-15, and has projected the total energy
sales to this category as 465.49 MU for FY 2014-15.
Commission’s analysis
The sales to this category constituted about 52% of the total energy sales of
TSECL in FY 2013-14. The Petitioner expects a growth of 25% in sales to this
category in FY 2014-15. TSECL has not mentioned any reason for considering
such high growth rate for energy sales to the Domestic category. The Commission
has observed that the CAGR of energy sales to this category in the last 5 years
has been 10.03%. In view of the actual growth rate of 10.03% over the last 5
years, the growth of 25% in energy sales to Domestic category assumed by the
Petitioner seems to be on the higher side.
Based on the sales data of the previous years, the Commission approves
the energy sales to domestic category for FY 2014-15 as 415.10 MU.
(C) Commercial
Petitioner’s submission
The Petitioner has shown the actual energy sales in FY 2013-14 to the
Commercial category as 64.66 MU. The Petitioner has considered 15% growth in
energy sales to the Commercial category for FY 2014-15, and has projected the
total energy sales to this category as 74.35 MU for FY 2014-15.
Commission’s analysis
The Petitioner expects a growth of 15% in sales to this category in FY 2014-15.
TSECL has not mentioned any reason for considering such high growth rate for
energy sales to the Commercial category. The Commission has observed that the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 126
November 2014
CAGR of energy sales to this category in the last 5 years has been 9.43%. In view
of the actual growth rate of 9.43% for last 5 years, the growth of 15% in energy
sales to Commercial category assumed by the Petitioner seems to be on the
higher side. The Commission has applied the actual CAGR of 9.43% to the actual
energy sales of 64.66 MU in FY 2013-14, to arrive at the energy sales of 70.82
MU to the Commercial category in FY 2014-15. The Commission observes that it
had carved out a separate consumer category for 'Mobile Towers' from the
Commercial category. As mentioned in the following section, the Commission has
approved sales of 25 MU to the Mobile Towers category. Hence, the sale of 25
MU to the Mobile Towers category has been reduced from the projected sales of
70.82 MU to Commercial category for FY 2014-15.
Accordingly, the Commission approves energy sales to Commercial
category for FY 2014-15 as 45.82 MU.
(D) Mobile Tower
Until FY 2012-13, the Mobile Tower consumers were included in the Commercial
category. In the previous Tariff Order dated June 25th, 2013, the Commission
created a separate category for these consumers, and had approved sales to
Mobile Towers category for FY 2013-14 as 22 MU. In its Tariff Petition, TSECL
has not submitted the segregated actual sales to this category from the sales to
the Commercial category. The Petitioner, in its Petition, has proposed energy
sales of 25 MU sales to this category for FY 2014-15. Considering the sales of 22
MU in FY 2013-14, energy sales of 25 MU in FY 2014-15 would mean annual
growth of 13.63% in energy sales to Mobile Towers. The Commission finds the
projection of the Petitioner reasonable.
Accordingly, the Commission approves energy sales to the Mobile Towers
category for FY 2014-15 as 25 MU.
(E) Irrigation
Petitioner’s submission
The Petitioner has shown the actual energy sales in FY 2013-14 to the irrigation
category consumers as 29.55 MU. The Petitioner has considered no growth in
energy sales to the Irrigation category for FY 2014-15 and has projected that the
energy sales to this category in FY 2014-15 would remain at the same level as the
actual sales in FY 2013-14.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 127
November 2014
Commission’s analysis
The Commission observes that sales to the Irrigation category has been reducing
over the years since 2009-10, except in FY 2012-13 when the sale had increased
as compared to FY 2011-12. Further, from the analysis of actual sales since 2009-
10, it is observed that the energy sales to this category has been reducing
annually at 7.13%. Considering the negative growth rate, the Commission has not
considered any growth in the energy sales to Irrigation category for projection of
sales for FY 2014-15. The Commission finds the Petitioner’s assumption that the
sales to this category in FY 2014-15 would remain at the same level as the actual
sales in FY 2013-14, reasonable.
Accordingly, the Commission approves energy sales to Irrigation category
for FY 2014-15 as 29.55 MU.
(F) Industrial (LT&HT)
Petitioner’s submission
The Petitioner has shown the actual energy sales in FY 2013-14 to the LT
Industrial consumers as 15.07 MU. The Petitioner has considered 25% growth in
energy sales to the LT Industrial category for FY 2014-15, and has projected the
total energy sales of 18.83 MU to the LT Industrial category for FY 2014-15.
TSECL has not mentioned any reason for assuming such high annual growth in
the sales to LT Industrial Consumers.
As regards HT Industrial Category, TSECL has submitted the actual energy sales
to this category in FY 2013-14 as 22 MU. The Petitioner has considered 10%
growth in energy sales to the HT Industrial category for FY 2014-15, and has
projected the total energy sales of 24 MU to HT Industrial category for FY 2014-
15. TSECL has not mentioned any reason for assuming 10% annual growth in the
sales to HT Industrial Consumers.
Commission’s analysis
In the previous Tariff Orders, the Commission has been approving combined
energy sales to the Industrial category including LT and HT consumers. The
separate energy sales data for LT and HT Industrial consumers is not available in
the data submitted by the Petitioner for the previous years until FY 2013-14.
Hence, for estimation of energy sales to LT and HT Industrial consumers, the
Commission has analysed the combined energy sales to LT and HT Industrial
consumers in the past years.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 128
November 2014
The Commission observes that since FY 2009-10, the sales to Industrial category
has increased at a CAGR of 5.25%. Considering the actual growth of 5.25% in
sales to Industrial consumers, the growth rates of 25% and 10% considered by
TSECL for projection of energy sales to LT Industrial and HT Industrial categories,
respectively, are very high. For projection of sales to the Industrial category in FY
2014-15, the Commission has applied the growth rate of 5.25% on the actual
energy sales of 37.07 MU in FY 2013-14.
Accordingly, the Commission approves energy sales to Industrial category
for FY 2014-15 as 39.02 MU.
(G) Bulk Supply
Petitioner’s submission
The Petitioner has shown the actual energy sales in FY 2013-14 to the Bulk
Supply category as 87.40 MU. The Petitioner has considered 30% growth in
energy sales to the Bulk Supply category for FY 2014-15, and has projected the
total energy sales to the Bulk Supply category for FY 2014-15 as 113.62 MU.
TSECL has not mentioned any reason for assuming such high growth in the sales
to this consumer category.
Commission’s analysis
Based on the actual sales to Bulk Supply category since FY 2009-10, it is
observed that the sales to this category have increased at the CAGR of 17.13%.
In view of the same, the growth rate of 30% assumed by the Petitioner for
projecting the energy sales to the Bulk Supply category for FY 2014-15 seems to
be on the higher side. The Commission has applied the growth rate of 17.13% for
projecting the sales to Bulk Supply category for FY 2014-15.
Accordingly, the Commission approves energy sales to Bulk Supply
category for FY 2014-15 as 102.37 MU.
(H) Tea, coffee and rubber garden
Petitioner’s submission
The actual energy sales to this category has been 0.69 MU in FY 2013-14. The
Petitioner has considered 20% growth in energy sales to this category and has
projected the total energy sales of 0.83 MU to this category for FY 2014-15.
TSECL has not mentioned any reason for assuming such high growth in the sales
to this consumer category.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 129
November 2014
Commission’s analysis
The Commission observes that since FY 2009-10, the sales to this category has
increased at a CAGR of 9.5%. Considering the actual growth of 9.5% in last 4
years, the growth rate of 20% considered by TSECL for projection of energy sales
to this category is on the higher side. For projecting the sales to this category for
FY 2014-15, the Commission has applied the growth rate of 9.5% to the actual
energy sales of 0.69 MU to this category in FY 2013-14.
Accordingly, the Commission approves energy sales to tea, coffee and
garden category for FY 2014-15 as 0.76 MU.
(I) Public water works
Petitioner’s submission
The actual energy sales to this category have been 67.50 MU in FY 2013-14
according to the submission of TSECL. The Petitioner has considered growth in
energy sales to this category as nil and has considered the same energy sales in
FY 2014-15. TSECL has not mentioned any reason for assuming zero growth in
sales to public water works category.
Commission’s analysis
The Commission observes that since FY 2009-10, the sales to this category has
increased at a CAGR of 11.05%. Considering the actual growth of 11.05% in last
4 years, the sales of 67.5 MU considered by TSECL for FY 2014-15 based on the
assumption of zero growth seems to be on the lower side. For projection of sales
to this category in FY 2014-15, the Commission has applied the growth rate of
11.05% to the actual energy sales of 67.50 MU to this category in FY 2013-14.
Accordingly, the Commission approves energy sales to public water works
category for FY 2014-15 as 74.96 MU.
(J) Public Lighting
Petitioner’s submission
The actual energy sales to this category was 35 MU in FY 2013-14. The Petitioner
has considered 15% growth in energy sales to this category and has projected the
total energy sales to this category as 40.25 MU in FY 2014-15.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 130
November 2014
Commission’s analysis
The Commission observes that since FY 2009-10, the sales to public lighting
category have increased at a CAGR of 9.4%. Considering the actual growth of
9.4% in the last 4 years, the growth rate of 15% considered by TSECL for
projection of energy sales to this category seems to be on the higher side. For
projecting the sales to this category in FY 2014-15, the Commission has applied
the growth rate of 9.4% to the actual energy sales of 35 MU to this category in FY
2013-14. Accordingly, the sales to Public Lighting category is projected as 38.29
MU in FY 2014-15. However, it is observed that TSECL has included the energy
sales to the consumer category of 'Special Public Utilities' in the energy sales to
public lighting. The Commission has approved 2.52 MU as energy sales to
Special Public Utilities in FY 2014-15 as elaborated in the following section. The
Commission has reduced such sales to the Special Public Utilities from the
estimated sales of 38.29 MU to the public lighting category for FY 2014-15.
Accordingly, the Commission approves energy sales to the public lighting
category in FY 2014-15 as 35.78 MU.
(K) Special Public Utility
TSECL has included the energy sales to special public utilities in the energy sales
to public lighting category. According to the Petitioner’s submission, the sales to
this category was 2.30 MU in FY 2013-14. The Commission has applied the same
growth rate of 9.4% as applicable to the public lighting category, as mentioned
above.
Accordingly, the Commission approves energy sales to special public
utilities in FY 2014-15 as 2.52 MU.
6.2.1 Approved category-wise energy sales for FY 2014-15
The category-wise energy sales approved by the Commission for FY 2014-15 are
given in the following Table:
Table 6-5: Consumer category wise approved energy sales for FY 2014-15
(MU)
Consumer Category Projection for
FY 2014-15
Approved for FY
2014-15
Kutir Jyoti 20.70 13.56
Domestic 465.49 415.10
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 131
November 2014
Consumer Category Projection for
FY 2014-15
Approved for FY
2014-15
Commercial 74.35* 45.82
Mobile Towers 25.00
Irrigation and Water 29.55 29.55
Industrial 42.83 39.02
Bulk Supply 113.62 96.14
Tea, coffee & rubber garden 0.83 0.76
Public Water Works 67.50 74.96
Public Lighting 40.25$ 35.78
Special Public Utility 2.52
Total intra-State sale 855.14 784.42
Note: * - includes Mobile Towers
$ - includes Special Public Utility
6.3 Own generation
TSECL owns and operates the following three generating stations:
Gumti Hydro-electric Project (GHEP)
Rokhia Gas Thermal Power Plant (RGTPP),
Baramura Gas Thermal Power Plant (BGTPP)
Apart from these major power generating stations, TSECL also owns one diesel
based generating unit.
The details of the existing stations along with their capacities and dates of
commissioning as submitted by TSECL, excluding the diesel generating station,
are given in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 132
November 2014
Table 6-6: Installed capacity, COD and current status of TSECL’s generating stations as submitted by TSECL
Name of Plant Unit
Unit
wise
Capacity
(MW)
Available
Installed
Capacity
(MW) for
FY 2014-
15
Year of
Commission
ing
Current Status
Rokhia Gas
Thermal Power
Plant (RGTPP)
1 8 0 1990 Retired
2 8 0 1990
3 8 8 1995
Out of bus 4 8 8 1995
5 8 8 1997
6 8 8 1997
7 21 21 2002
In Operation 8 21 21 2006
9 21 21 August
2013
sub-total 111 95
Baramura Gas
Thermal Power
Plant (BGTPP)
1 5 0 1986
Retired 2 5 0 1986
3 6.5 0 1990
4 21 21 2002 In Operation
5 21 21 2010
sub-total 58.5 42
Gumti Hydro-
electric Project
(GHEP)
1 5 5 1976 In Operation.
Only 2 units run
at a time keeping
other unit standby
alternatively.
2 5 5 1976
3 5 5 1984
sub-total 15 15
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 133
November 2014
Name of Plant Unit
Unit
wise
Capacity
(MW)
Available
Installed
Capacity
(MW) for
FY 2014-
15
Year of
Commission
ing
Current Status
Total 184.5 152
Petitioner’s submission
Vide its submission in reply to the data gaps sent by the Commission, the
Petitioner has projected gross generation for FY 2014-15 as 838.34 MU. The
auxiliary consumption and net generation projected by the Petitioner for FY 2014-
15 are 8.26 MU and 830.08 MU, respectively.
The plant-wise gross generation, auxiliary consumption and net generation
projected by the Petitioner for FY 2014-15 are given in the following Table:
Table 6-7: Own generation projected by TSECL for FY 2014-15
Particulars Unit Petitioner’s submission
(Projected)
RGTPP
Installed Capacity MW 95.00
De-rated Capacity MW 63.00
Plant Load Factor % 86.71%*
Gross Generation MU 478.55
Auxiliary Consumption % 1.00%
Auxiliary Consumption MU 4.79
Net Generation MU 473.76
BGTPP
Installed Capacity MW 42.00
De-rated Capacity MW 42.00
Plant Load Factor % 86.30%
Gross Generation MU 317.52
Auxiliary Consumption % 1.00%
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 134
November 2014
Particulars Unit Petitioner’s submission
(Projected)
Auxiliary Consumption MU 3.18
Net Generation MU 314.34
GHEP
Installed Capacity MW 15.00
De-rated Capacity MW 12.00
Plant Load Factor % 40.21%
Gross Generation MU 42.27
Auxiliary Consumption % 0.70%
Auxiliary Consumption MU 0.30
Net Generation MU 41.97
Total Own Generation
Installed Capacity MW 152.00
De-rated Capacity MW 117.00
Gross Generation MU 838.34
Auxiliary Consumption MU 8.26
Net Generation MU 830.08
Note: * The Petitioner has submitted 73.82%, which is a computational error
Thus, the Petitioner has projected gross and net generation from its own
generating stations at 838.34 MU and 830.08 MU, respectively, for FY 2014-15.
Commission’s analysis
While approving the projected own generation from TSECL’s own generating
stations for FY 2014-15, the Commission observes as follows:
The Petitioner has submitted that Unit 3 to Unit 6 of 8 MW each of RGTPP
shall remain out of bus for FY 2014-15. Considering that the Units 1 and 2 of 8
MW each are already retired, the available capacity of RGTPP for FY 2014-15
would be only 63 MW. The Petitioner has projected gross generation of 478.55
MU from RGTPP at PLF of 86.71%, which is higher than the actual generation
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 135
November 2014
of 454.21 MU in FY 2013-14. The Commission observes that the actual PLF of
RGTPP was 95.67% in FY 2013-14 (for approved capacity of 63 MW).
However, in FY 2012-13, the PLF of RGTPP was only 63.52% (for approved
capacity of 74 MW). In view of the above, the Commission is of the view that
the PLF of 86.71% projected by TSECL for RGTPP for FY 2014-15 is
reasonable. The Commission approves the gross generation of 478.55 MU
from RGTPP for FY 2014-15, as projected by the Petitioner.
The Petitioner has projected gross generation of 317.52 MU from BGTPP at
the PLF of 86.30%. The projected generation from BGTPP for FY 2014-15 is
significantly higher than the actual gross generation of 274.99 MU in FY 2013-
14 and the Commission approves the same for FY 2014-15.
TSECL has projected gross generation of 42.27 MU from GHEP in FY 2014-15
at the PLF of 40.21%. The projected generation from GHEP is higher than the
actual gross generation of 38.75 MU and 34.50 MU in FY 2012-13 and FY
2013-14, respectively. The Commission finds the gross generation from GHEP
as projected by TSECL reasonable and approves the same for FY 2014-15.
In view of the above, the Commission approves the generation from TSECL’s
generating stations excluding the diesel generating station, as shown in the
following Table:
Table 6-8: Gross generation approved for FY 2014-15
Particulars Unit
Petitioner’s
submission
(projected)
Approved for FY
2014-15
RGTPP
Installed Capacity MW 95.00 95.00
Available Capacity MW 63.00 63.00
Plant Load Factor % 86.71% 86.71%
Gross Generation MU 478.55 478.55
Auxiliary Consumption % 1.00% 1.00%
Auxiliary Consumption MU 4.79 4.79
Net Generation MU 473.76 473.76
BGTPP
Installed Capacity MW 42.00 42.00
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 136
November 2014
Particulars Unit
Petitioner’s
submission
(projected)
Approved for FY
2014-15
Available Capacity MW 42.00 42.00
Plant Load Factor % 86.30% 86.30%
Gross Generation MU 317.52 317.52
Auxiliary Consumption % 1.00% 1.00%
Auxiliary Consumption MU 3.18 3.18
Net Generation MU 314.34 314.34
GHEP
Installed Capacity MW 15.00 15.00
Available Capacity MW 12.00 12.00
Plant Load Factor % 40.21% 40.21%
Gross Generation MU 42.27 42.27
Auxiliary Consumption % 0.70% 0.70%
Auxiliary Consumption MU 0.30 0.30
Net Generation MU 41.97 41.97
Total Own Generation
Installed Capacity MW 152.00 152.00
Available Capacity MW 117.00 117.00
Gross Generation MU 838.34 838.34
Auxiliary Consumption MU 8.26 8.26
Net Generation MU 830.08 830.08
The Commission approves the gross and net generation for FY 2014-15 from
generating stations of TSECL as 838.34 MU and 830.08 MU, respectively.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 137
November 2014
6.4 Power Purchase
Petitioner’s submission
TSECL has submitted that it procures power from NEEPCO and NHPC. It has
also been procuring power from OTPC Palatana from January, 2014. While
projecting the power procurement from NEEPCO and NHPC sources, TSECL has
assumed that in FY 2014-15, TSECL will receive the same amount of energy as
available in FY 2013-14 from each of the stations. The State of Tripura has 80
MW allocation from OTPC Palatana Plant, and TSECL has projected the power
purchase of 700.80 MU in FY 2014-15 from this plant. The procurement of power
projected by TSECL for FY 2014-15, is as shown in the following Table:
Table 6-9: Power purchase in FY 2014-15 as projected by TSECL
(MU)
Source of Power Purchase Petitioner’s submission
(projected)
NEEPCO 364.28
NHPC 67.90
OTPC Palatana 700.80
Total 1132.98
Commission’s analysis
TSECL has submitted that while projecting the power procurement from NEEPCO
and NHPC sources, it has assumed that in FY 2014-15, TSECL will receive the
same amount of energy as available in FY 2013-14, from each of the stations.
However, from the energy accounts for FY 2013-14 submitted by the Petitioner, it
is observed that the projected power procurement from NEEPCO and NHPC in
FY 2014-15, as submitted by TSECL is not the same as the actual power
procurement from these sources in FY 2013-14. However, the Commission
agrees with the Petitioner's stated basis for projecting the power procurement
from NEEPCO and NHPC. Hence, the Commission approves the power purchase
from NEEPCO and NHPC as 365.28 MU and 71.72 MU, respectively, which is the
same as that approved for FY 2013-14 based on actuals.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 138
November 2014
As regards power purchase from OTPC Palatana, TSECL has projected power
purchase of 700.80 MU from the plant. Considering the actual power purchase
from OTPC Palatana since the operationalisation of the Plant, and considering the
probability of commencement of the second Unit of OTPC Palatana, the
Commission is of the view that the power purchase projected by the Petitioner is
reasonable, and the same is approved for FY 2014-15.
Accordingly, the Commission approves the total power purchase for FY 2014-15
as 1137.80 MU, as shown in the Table below:
Table 6-10: Approved power purchase for FY 2014-15
(MU)
Source of Power Purchase
Petitioner’s
submission
(projected)
Approved for FY
2014-15
NEEPCO 364.28 365.28
NHPC 67.90 71.72
OTPC Palatana 700.80 700.80
Total 1132.98 1137.80
6.5 Transmission and Distribution Loss
Petitioner’s submission
The Petitioner, in its Petition, projected the T&D loss for FY 2014-15 as 31.68%.
However, in its detailed submission, TSECL has projected the total energy
availability of 1325.74 MU at the State periphery and has projected total sales of
855.14 MU in the State. Thus, the Petitioner has projected total T&D loss in its
network at 35.50%. TSECL submitted that in the last few years, the LT:HT ratio of
the network in the State has increased as a result of extensive village
electrification and addition of large number of LT consumers, and therefore, the
loss of the network is expected to rise. However, on completion of R-APDRP
projects, the technical and commercial losses of TSECL are expected to come
down rapidly in the future, but till then, TSECL has to manage higher T&D loss in
the network.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 139
November 2014
Commission’s analysis
The Commission observes that the T&D loss of 35.50% proposed by the
Petitioner for approval for FY 2014-15 is significantly higher than the T&D loss of
22% for FY 2013-14 approved by the Commission.
The Petitioner has contended that the increase in the T&D loss is a result of the
increased LT:HT ratio of its network on account of extensive village electrification
undertaken by the Petitioner. As elaborated by the Commission in Para 4.4 of this
Order, the analysis of the actual length of the network vis-a-vis T&D loss of the
network of TSECL does not support such contention of the Petitioner. Despite the
increase in LT network, the LT:HT ratio of TSECL’s network has remained
constant at 1.71 since 2008-09 due to corresponding increase in the HT network
also. The Commission also observes that the total sales to Kutir Jyoti and
Domestic category consumers has increased significantly in the last few years,
which may be the result of the extensive village electrification undertaken by
TSECL. However, because of corresponding increase in the consumption of other
categories also, the total energy sales to Domestic and Kutir Jyoti category has
remained constant at around 53-55% of the total energy sales of TSECL.
In view of the above, the Commission has come to the conclusion that it cannot
allow the T&D loss for FY 2014-15 as proposed by TSECL. The Commission has
been reducing the target T&D loss for TSECL every year. However, from the
actual data for FY 2012-13 and FY 2013-14 submitted by the Petitioner, the
Commission observes that the Petitioner has fallen far behind the target loss
reduction approved by the Commission. Therefore, for FY 2014-15, the
Commission has not further reduced the T&D loss target for TSECL and approves
T&D loss of 22.00% for FY 2014-15, which is the same as that approved for FY
2013-14.
Table 6-11: Approved T&D loss for FY 2014-15
Particular
Petitioner’s
submission
(projected)
Approved for FY
2014-15
T&D loss 35.50% 22.00%
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 140
November 2014
6.6 Energy Balance
Petitioner’s submission
In its Tariff Petition, TSECL has submitted the energy balance for FY 2014-15, as
shown in the following Table:
Table 6-12: Energy Balance for FY 2014-15 as submitted by TSECL
Particulars Unit
Petitioner’s
submission
(projected)
Energy Requirement
Energy Sales within State MU 855.14
Sale in bilateral trade/UI MU 689.08
T&D Losses MU 387.63
T&D Losses % 31.19%
Total Energy Requirement @ TSECL
Periphery MU 1242.77
Energy Availability
Own Generation MU 830.08
Total Power Purchase MU 1133.98
Gross Power Availability MU 1964.06
NER Loss MU 32.21
Net Power Availability MU 1931.85
However, vide its detailed submission, TSECL submitted the revised energy
balance as shown in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 141
November 2014
Table 6-13: Revised Energy Balance for FY 2014-15 as submitted by TSECL
Particulars Unit
Petitioner’s
submission
(projection)
Energy Requirement
Energy Sales within State MU 855.12
Sale in bilateral trade/UI MU 606.11
T&D Losses MU 470.62
T&D Losses % 35.50%
Total Energy Requirement @ TSECL
Periphery MU 1325.74
Energy Availability
Own Generation MU 830.08
Total Power Purchase MU 1133.98
Gross Power Availability MU 1964.06
NER Loss MU 32.21
Net Power Availability MU 1931.85
Commission’s analysis
The Petitioner has submitted NER loss of 32.21 MU for FY 2014-15. The
Petitioner has submitted the computation of projected NER loss based on Point of
Connection data, which the Commission has found reasonable. The increase in
the quantum of NER loss for FY 2014-15 as compared to approved NER loss of
16.11 MU for FY 2013-14 is on account of significantly higher energy purchase
projected by the Petitioner.
The Commission has approved the total power purchase of 1137.80 MU as
against 1132.98 MU projected by the Petitioner. The Petitioner has projected the
NER loss of 32.21 MU for FY 2014-15 on the basis of the projected power
purchase of 1132.98 MU. Since, the Commission has approved power purchase
of 1137.80 MU for FY 2014-15, the Commission has increased NER loss
proportionately, and approves the NER loss of 32.35 MU for FY 2014-15.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 142
November 2014
Based on the approved energy sales, T&D loss, own generation and power
purchase, the Commission approves the energy balance for FY 2014-15, as
shown in the following Table:
Table 6-14: Approved Energy Balance for FY 2014-15
Particulars Unit
Petitioner’s
submission
(projection)
Approved for
FY 2014-15
Energy Requirement
Energy Sales within State MU 855.12 784.42
Sale in bilateral trade/UI MU 606.11 929.87
T&D Losses MU 470.62 221.25
T&D Losses % 35.50% 22.00%
Total Energy Requirement @
TSECL Periphery MU 1325.74 1005.67
Energy Availability
Own Generation MU 830.08 830.08
Total Power Purchase MU 1133.98 1137.80
Gross Power Availability MU 1964.06 1967.88
NER Loss MU 32.21 32.35
Net Power Availability MU 1931.85 1935.53
6.7 Fuel purchase cost
Petitioner’s submission
TSECL, in its Tariff Petition, projected the fuel cost for FY 2014-15 as Rs. 216.28
Crore. TSECL has projected the fuel cost for FY 2014-15 based on the
assumption that the average fuel consumption will be same as that for FY 2013-
14 and gas price shall be higher by 10% over the average gas price of FY 2013-
14. Vide its submission in reply to the data gaps sent by the Commission, the
Petitioner has submitted that it has assumed such increase in the gas price based
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 143
November 2014
on the impeding gas price increase by the Government of India. Thus, the
Petitioner has computed the fuel cost of Rs. 216.28 Crore for FY 2014-15 based
on the average gas price of Rs. 6.61/SCM and specific fuel consumption of 0.307
kg/kWh, as shown in the following Table:
Table 6-15: Fuel cost projected by TSECL for FY 2014-15
Particular Unit
Petitioner’s
submission
(projection)
Gas consumed Tonnes 244076.16
Units Generated MU 796.07
Specific fuel consumption kg/kWh 0.307
Gas price Rs./SCM 6.61
Cost of gas Rs. Crore 216.28
Commission’s analysis
The Petitioner has projected the fuel cost for own generation for FY 2014-15 as
Rs. 216.28 Crore. TSECL procures gas from GAIL and ONGC. The Petitioner has
projected the increased fuel purchase cost on the basis of impending gas price
hike approval by the Government of India.
For projecting the fuel purchase cost of TSECL for FY 2014-15, the Commission
has assumed the same per unit cost of gas as approved for FY 2013-14 for the
first 7 months of FY 2014-15, i.e., till October 2014. However, based on the latest
developments regarding the gas price hike by Government of India, the
Commission expects the gas price increase of 33.33% from November, 2014. In
view of the same, while projecting the fuel cost of TSECL for FY 2014-15, the
Commission has assumed increase of 33.33% over the per unit fuel purchase
cost for FY 2013-14, for the remaining 5 months of FY 2014-15, i.e., from
November 2014 to March 2015.
As mentioned in the previous Chapter, based on the data of actual gas
consumption and own generation submitted by the Petitioner, the Commission
has approved gas consumption of 296.73 MMSCM for gross generation of 729.20
MU in FY 2013-14, from the two gas based plants of TSECL namely, RGTPP and
BGTPP. For the projection of gas consumption for FY 2014-15, the Commission
has determined total gas consumption of 323.42 MMSCM for the approved
generation of 796.07 MU, assuming the same specific gas consumption of TSECL
as in FY 2013-14.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 144
November 2014
In view of the above, the Commission approves the fuel purchase cost of Rs.
221.20 Crore for consumption of 323.42 MMSCM gas at average gas price of 6.84
Rs./SCM. Additionally, the Commission approves the cost of HSD for FY 2014-15
as Rs. 0.10 Crore for Gas based thermal generating stations, which is the same
as that approved for FY 2013-14.
Table 6-16: Approved fuel purchase cost for FY 2014-15
Generating Station Particulars Unit Approved for FY
2014-15
RGTPP
Quantity of Gas MMSCM 200.14
Amount Rs. Crore 136.36
Average Price Rs./SCM 6.81
BGTPP
Quantity of Gas MMSCM 123.28
Amount Rs. Crore 84.84
Average Price Rs./SCM 6.88
Total Gas
Quantity of Gas MMSCM 323.42
Amount Rs. Crore 221.20
Average Price Rs./SCM 6.84
Cost of purchase of
HSD Amount Rs. Crore 0.10
Total Fuel purchase
cost Amount Rs. Crore 221.30
6.8 Power purchase cost
Petitioner’s submission
The Petitioner, in its Tariff Petition, has projected the power purchase quantum for
FY 2014-15 at 1132.99 MU. TSECL has submitted that it procures power from
NEEPCO and NHPC. It has been procuring power from OTPC Palatana since
January, 2014.
TSECL submitted the station-wise actual power purchase cost for actual quantum
of power purchased from stations of NEEPCO and NHPC for FY 2013-14,
although it failed to submit the bills raised by the generators for the sale of power.
As mentioned earlier, for power purchase from NEEPCO and NHPC, the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 145
November 2014
Petitioner has proposed to procure the same amount of energy in FY 2014-15 as
procured in FY 2013-14.
The Petitioner has submitted that while projecting power procurement from the
plants of NEEPCO, it has assumed the fixed cost escalation at 6.64% as provided
in CERC (Terms and Conditions of Tariff) Regulations, for the period 2014-15 to
2018-19. Further, the energy cost of gas based power plants has been projected
to increase @10% over FY 2013-14 prices. NHPC Loktak plant’s fixed cost is
escalated annually @5% over FY 2013-14 prices. For power purchase from
OTPC Palatana, the Petitioner has projected the power purchase cost based on
the Order of Central Electricity Regulatory Commission (CERC) dated December
20th, 2013, in the matter of approval of provisional tariff for OTPC Palatana.
Accordingly, TSECL has proposed the power purchase cost of Rs. 301.31 Crore,
as shown in the following Table:
Table 6-17: Power purchase cost for FY 2014-15 as projected by TSECL
Plant Fixed
Charges
Variable
Charges
Power
Purchase Total cost
Rs. Crore Rs. Crore MU Rs. Crore
Khandong 1.56 1.11 8.86 2.65
Kopili 2.23 0.45 38.02 4.10
Kopili St – II - 0.92 8.53 0.66
AGTPP (Agartala) 13.76 2.74 97.38 42.63
AGBPP (Assam) 17.78 2.17 108.50 42.17
DHEP 3.49 2.08 13.46 6.83
RHEP 15.54 1.22 89.53 24.45
Total NEEPCO 54.36 10.69 364.28 123.49
Loktak HEP (NHPC) - 1.53 67.90 10.36
OTPC Palatana 85.06 1.21 700.80 167.46
Total 139.32 24.12 1132.99 301.31
The Petitioner has submitted that for projection of transmission and RLDC
charges for FY 2014-15, average monthly charges incurred over the period from
January, 2014 to March, 2014 have been considered, based on the fact that in
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 146
November 2014
these months Palatana power was available and the transmission charges will be
similar in all the months of FY 2014-15.
In its Petition, TSECL projected the Transmission and RLDC charges for FY 2014-
15, as shown below:
Table 6-18: Transmission and RLDC charges for FY 2014-15
(Rs. Crore)
Particular Petitioner’s submission
PGCIL charge 1.14
POSOCO charge 37.35
Total charges 38.49
Commission’s analysis
As mentioned earlier, the Commission has approved power purchase from
NEEPCO and NHPC as 365.28 MU and 71.72 MU, respectively, for FY 2014-15
based on the actual power purchase in FY 2013-14. As mentioned earlier, based
on the latest developments regarding gas price hike, the Commission expects
33.33% increase in the cost of gas from November, 2014.
In its detailed submission, the Petitioner submitted the plant-wise actual fixed cost
and per unit energy charges for the stations of NEEPCO and NHPC. For
projection of power purchase cost for FY 2014-15, the Commission has
considered the same actual fixed charges and per unit energy charges of FY
2013-14, as submitted by the Petitioner. However, for the two gas based stations
of NEEPCO, namely, AGTPP and AGBPP, the Commission has considered
increase of 33.33% in per unit energy charges of FY 2013-14, based on the gas
price hike recently approved by the Government of India.
For power purchase from OTPC Palatana, the Petitioner has projected the fixed
charges and per unit energy charges based on the Order of Central Electricity
Regulatory Commission (CERC) dated December 20th, 2013, in the matter of
approval of provisional tariff for OTPC Palatana. Accordingly, the Petitioner has
projected the fixed cost of OTPC Palatana for FY 2014-15 as Rs. 82.41 Crore,
based on the share of 80 MW to the State of Tripura. TSECL has considered the
energy charge to be paid to OTPC Palatana as Rs. 1.21 kWh. The Commission
finds the submission of TSECL in this regard reasonable. Accordingly, the
Commission has considered the same fixed cost and per unit energy charges as
submitted by the Petitioner for first seven months of FY 2014-15. Based on the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 147
November 2014
impending gas price hike, the Commission has considered increase of 33.33% in
the per unit energy charges for power purchased from OTPC Palatana plant from
November, 2014.
Based on the above and in view of the approved power purchase quantum, the
Commission approves the total power purchase cost for FY 2014-15, excluding
the transmission and RLDC charges, as Rs. 320.38 Crore.
The Petitioner has submitted that for projection of transmission and RLDC
charges for FY 2014-15, it has considered average monthly charges incurred over
the period from January, 2014 to March, 2014, in view of the fact that in these
months, Palatana power was available and the transmission charges will be
similar in all the months of FY 2014-15. Accordingly, the Petitioner has projected
the transmission charges as Rs. 37.35 Crore, and the RLDC charges as Rs. 1.14
Crore for FY 2014-15. The Commission agrees with the rationale considered by
TSECL for projection of transmission and RLDC charges for FY 2014-15.
However, the Commission has approved total power purchase of 1137.80 MU as
against power purchase of 1132.98 MU projected by the Petitioner for FY 2014-
15. The Commission approves the transmission and RLDC charges as proposed
by the Petitioner but in proportion to the approved power purchase quantum.
Accordingly, the Commission approves the transmission charges and RLDC
charges as Rs. 37.51 Crore and Rs. 1.14 Crore, respectively, for FY 2014-15.
In view of the above, the Commission approves the total power purchase cost for
FY 2014-15 as Rs. 359.03 Crore, including the transmission and RLDC charges,
as shown in the following Table:
Table 6-19: Approved power purchase cost for FY 2014-15
Particulars Unit
Power
purchase
Quantum
(MU)
Power Purchase
cost
(Rs. Crore)
Per unit rate
(Rs./kWh)
NEEPCO Rs. cr. 365.28 122.62 3.36
NHPC Rs. cr. 71.72 18.49 2.58
OTPC Palatana Rs. cr. 700.80 179.28 2.56
Total Power
Purchase Cost Rs. cr.
1137.80 320.38 2.82
PGCIL Charges Rs. cr.
37.51
POSOCO Rs. cr.
1.14
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 148
November 2014
Particulars Unit
Power
purchase
Quantum
(MU)
Power Purchase
cost
(Rs. Crore)
Per unit rate
(Rs./kWh)
Charges
Total Power
Purchase Cost
including
Transmission
and RLDC
charges
Rs. cr. 1137.80 359.03 3.16
6.9 Operation and Maintenance (O&M) expenses
Petitioner’s submission
O&M expenses comprise of employee expenses, repair and maintenance
expenses, and administrative and general expenses. The O&M expenses
projected by the Petitioner for FY 2014-15 are shown in the Table below:
Table 6-20: O&M expenses for FY 2014-15 projected by the Petitioner
(Rs. Crore)
Particulars Petitioner’s submission
(projection)
Employee Expenses 122.14
Repair & Maintenance Expenses 25.46
Administrative & General Expenses 16.30
Total 163.90
The following sections elaborates the component-wise analysis of the O&M
expenses:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 149
November 2014
6.9.1 Employee expenses
Petitioner’s submission
The Petitioner submitted that the employee expenses (including salaries, wages
and other benefits) for FY 2014-15 has been estimated by escalating FY 2013-14
values at 22% owing to massive new recruitment proposed in FY 2014-15. The
Petitioner added that it has estimated the function-wise employee cost increase
for FY 2014-15. The Petitioner requested the Commission to allow employee
expenses of Rs. 122.14 Crore for FY 2014-15.
Commission’s analysis
As regards the Commission’s query regarding grade-wise, function-wise and
scale-wise actual and proposed employees along with the current status of
recruitment, the Petitioner submitted that the present salary structure and number
of employees is being prepared and will be submitted separately in a short period
of time, however, no such information has been provided by TSECL to the
Commission. Given the lack of desired information, it is difficult for the
Commission to assess whether the Petitioner’s proposal for increase of 22% in
the employee expenses is justifiable or not. Therefore, for the purpose of approval
of ARR of FY 2014-15, the Commission has considered an escalation factor of 8%
on the employee expense approved by the Commission for FY 2013-14 in the
earlier Chapter of this Order, which seems to be justifiable seeing the escalation
of 7.40% and 9.50% in WPI and CPI indices, respectively, from FY 2010-11 to FY
2013-14. The approved employee expenses for FY 2014-15 is presented in the
Table below:
Table 6-21: Employee expenses approved for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(projected)
Approved for FY
2014-15
Employee Expenses 122.14 109.92
The Commission accordingly approves the employee expenses of Rs.
109.92 Crore for FY 2014-15.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 150
November 2014
6.9.2 Repair & Maintenance (R&M) expenses
Petitioner’s submission
The Petitioner has projected the R&M expenses for FY 2014-15 as Rs. 25.46
Crore. The Petitioner submitted that the R&M expenses for FY 2014-15 have
been estimated by escalating the FY 2013-14 values at 8.62%, which is the
average increase of the WPI for FY 2010-11, FY 2011-12 and FY 2012-13. The
Petitioner submitted that for Transmission, the R&M cost has been fixed at Rs.
3.70 Crore owing to major R&M expenses being carried out on lines and sub-
stations. The Petitioner added that it has estimated function-wise R&M increase
for FY 2014-15 and requested the Commission to approve the same.
Commission’s analysis
The Commission has analysed the WPI and CPI indices from FY 2010-11 to FY
2013-14 and has observed that the WPI and CPI indices have escalated at the
average rate of 7.40% and 9.50%, respectively, in the last four years. In view of
the same, the Commission considers it reasonable to allow R&M expenses for FY
2014-15 by escalating the approved R&M expenses of FY 2013-14 by 8%.
Accordingly, the Commission approves the R&M expenses for FY 2014-15 as Rs.
30.70 Crore, as shown in the following Table:
Table 6-22: R&M expenses approved for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(Projected)
Approved by the
Commission
R&M Expenses 25.46 30.70
The Commission accordingly approves the R&M expenses as Rs. 30.70
Crore for FY 2014-15.
6.9.3 Administrative and General (A&G) expenses
Petitioner’s submission
The Petitioner submitted that the A&G expenses for FY 2014-15 have been
projected by escalating the FY 2013-14 values at 8.62%, which is the average
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 151
November 2014
increase of the WPI for FY 2010-11, FY 2011-12 and FY 2012-13. The Petitioner
added that it has estimated function-wise A&G increase for FY 2014-15 and
requested the Commission to approve the same.
Commission’s analysis
The Commission has analysed the WPI and CPI indices from FY 2010-11 to FY
2013-14 and has observed that the WPI and CPI indices have escalated at the
average rate of 7.40% and 9.50%, respectively, in the last four years. In view of
the same, the Commission considers it reasonable to allow A&G expenses for FY
2014-15 by escalating the approved A&G expenses of FY 2013-14 by 8%.
Accordingly, the Commission approves A&G expenses for FY 2014-15 as Rs.
15.67 Crore, as shown in the following Table:
Table 6-23: A&G expenses approved for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(Projected)
Approved for FY
2014-15
A&G Expense 16.30 15.67
The Commission, accordingly, approves A&G expenses of Rs. 15.67 Crore
for FY 2014-15.
In view of the employee expenses, R&M expenses and A&G expenses approved
by the Commission as mentioned above, total O&M expenses approved by the
Commission for FY 2014-15 is given below:
Table 6-24: Approved O&M expenses for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(Projected)
Approved for FY
2014-15
Employee Expense 122.14 109.92
Repair and Maintenance Expense 25.46 30.70
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 152
November 2014
Particulars
Petitioner’s
submission
(Projected)
Approved for FY
2014-15
Administrative and General Expenses 16.30 15.67
Total 163.90 156.29
6.10 Depreciation
Petitioner’s submission
The Petitioner submitted that the Gross Fixed Assets have been taken from
provisional annual accounts for FY 2013-14. The Petitioner further added that
function-wise GFA has been used to estimate the total GFA added in FY 2014-15.
Based on the same, the GFA and depreciation for FY 2014-15 as submitted by
the Petitioner, is given in the following Table:
Table 6-25: Depreciation for FY 2014-15 as submitted by the Petitioner in the Petition
(Rs. Crore)
Asset Particulars GFA FY
2014-15
Depreciation
Rate
Depreciation FY
2014-15
Land 56.09 0.00% 0.00
Building 27.49 2.49% 0.68
Plant and Machinery 782.06 5.28% 41.29
Computer 0.54 16.21% 0.09
Computer and Office
Equipment 2.61 16.21% 0.42
Office Equipment 0.15 16.21% 0.02
Furniture 1.21 6.33% 0.08
Vehicles 0.42 9.50% 0.04
Grand Total 870.57 42.63
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 153
November 2014
Accordingly, the Petitioner, in its Petition, requested the Commission to approve
depreciation of Rs. 42.63 Crore for FY 2014-15.
However, in its detailed submission dated September 3rd, 2014, the Petitioner
revised its submission with regard to depreciation for FY 2014-15 and submitted
the depreciation for FY 2014-15 as Rs. 22.06 Crore, as shown in the following
Table:
Table 6-26: Revised computation of Depreciation for FY 2014-15 as submitted by TSECL
(Rs. Crore)
Asset Particulars GFA for FY 2014-
15
Depreciation
Rate
Depreciation for
FY 2014-15
Land 30.70 0.00% -
Building 14.28 2.49% 0.36
Plant & Machinery 405.48 5.28% 21.41
Computer 0.24 16.21% 0.04
Computer and Office
Equipment 1.14 16.21%
0.18
Office Equipment 0.07 16.21% 0.01
Furniture 0.61 6.33% 0.04
Vehicles 0.18 9.50% 0.02
Total Closing GFA 452.70 22.06
Commission’s analysis
As discussed in detail in Chapters 4 and 5 of this Order, in the absence of the
fixed assets and depreciation register, the Commission has provisionally
considered the GFA and depreciation as per the Petitioner’s submission based on
the depreciation rates stipulated in the Companies Act and Straight Line Method
(SLM). Further, it is to be noted that although the Commission has provisionally
considered the GFA for FY 2014-15, the same shall be reviewed based on the
Petitioner’s submission of fixed asset and depreciation registers.
In view of the above, the Commission allows the depreciation of Rs. 22.06 Crore
for FY 2014-15, as claimed by the Petitioner, as shown in the Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 154
November 2014
Table 6-27: Depreciation approved for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(Projected)
Approved for FY
2014-15
Depreciation 22.06 22.06
6.11 Interest and Finance Charges
Petitioner’s submission
The Petitioner submitted that the gross normative opening loan has been taken
from the provisional accounts for FY 2013-14. In its Petition submitted Interest and
Finance charges of Rs. 14.80 Crore. However, in its detailed submission in reply
to the data gaps sent by the Commission, considering the opening loan from
various sources, the interest and finance charges for FY 2014-15, as submitted by
the Petitioner is shown in the following Table:
Table 6-28: Interest and Finance Charges for FY 2014-15 as submitted by the Petitioner
(Rs. Crore)
Particulars FY 2014-15
Opening Loan 200.13
Addition of Assets 29.89
Depreciation 22.06
Closing Loan 207.96
Interest 16.02
Accordingly, the Petitioner has requested the Commission to approve interest and
finance charges of Rs. 16.02 Crore for FY 2014-15.
Commission’s analysis
It is observed that the Interest on loans amounting to Rs. 16.02 Crore for FY
2014-15 has been computed on normative basis. However, the provisional annual
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 155
November 2014
accounts of FY 2012-13 and FY 2013-14 show that the Petitioner has not been
paying any amount as actual interest and finance charges.
Further, by TSECL's own admission in the Petition and as per the provisional
annual accounts, there is no interest liability on any of the sources of long-term
loans, i.e., PFC, REC, and GoT, as elaborated below:
1. Loan from PFC:
a. The loan along with interest thereon shall be converted into grant once the
establishment of the required system is achieved and verified by an
independent agency appointed by Ministry of Power (MoP). No conversion
to grant will be made in case projects are not completed within 3 years from
date of sanction of the project and in such case, TSECL will have to bear
full loan and interest repayment.
b. As is clear from the above, the onus of timely completion of the projects is
on TSECL, so that the entire loan amount is converted to a grant, which
has neither any interest obligation nor is the amount required to be repaid.
In case TSECL fails to complete the projects on time, and the loans are not
converted to grants, the consumers cannot be asked to bear the burden of
the same, as they are not responsible for the delay in the completion of the
project and consequent conversion of the grant to loan.
c. Further, no interest payment and repayment schedule is mentioned for
PFC loan for the computation of interest and finance charges. Hence, there
is no basis for computing or allowing any interest expense on such grant
from PFC.
2. Loan from REC:
a. The fund is released by REC under RGGVY scheme and 90% of the
approved cost is provided as grant and remaining 10% as loan. However,
this fund is not given directly to TSECL but is disbursed through
Government of Tripura and TSECL is paying interest on this loan on behalf
of GoT in four quarterly instalments. In the accounts, this loan is treated
under head ‘GoT loan’ and the moratorium period of 5 years is provided on
repayment of this loan. Since, this is not a loan given to TSECL and are
funds received on behalf of GoT, the amount received by TSECL has been
considered within Deposit Work under Other Long Term Liabilities in the
accounts for FY 2012-13.
b. As is clear from the above, 90% of the approved cost is provided as grant,
i.e., there is no repayment obligation or interest cost on these funds.
However, TSECL has submitted that it is paying interest on behalf of GoT.
Firstly, the provisional annual accounts do not record any such payment of
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 156
November 2014
interest, as the interest and finance charges have been reported as Nil in
FY 2012-13 and FY 2013-14. Secondly, even if TSECL is paying any
interest on behalf of GoT, the same cannot be recovered from the
consumers, and the same has to be recovered by TSECL from the GoT, as
the consumers cannot be asked to bear the interest and repayment
obligation for the funds, which have been received as grants. For the
balance 10% of the amount received from REC, there will be an interest
obligation as well as repayment obligation, however, the provisional
accounts do not show any such interest expense, and hence, have not
been considered by the Commission. If such interest expenses are actually
incurred, then the same will be allowed at the time of review/truing up.
3. Loan from Govt. of Tripura (GoT):
a. The Government of Tripura loan is disbursed as interest free loans from the
State Government under budgetary Non-Plan consideration and is to be
repaid to the GoT under 30 equal instalments within a period of 15 years as
provided in Memorandum of the Government of Tripura dated July 17th,
2009.
b. As is clear from the above, the GoT loan is an interest free loan, and
hence, there is no interest obligation on the same.
Further, from the provisional accounts of FY 2012-13 and FY 2013-14, it is clear
that TSECL has not paid the interest on consumers' security deposit, even though
the same is a statutory obligation under the Electricity Act, 2003. Hence, the
Commission has not considered any interest expense on this account. However,
TSECL should pay interest to the consumers on the amount of security deposit
held by TSECL, at the Bank Rate notified by the Reserve Bank of India from time
to time, in accordance with the Electricity Act, 2003. The actual interest paid by
TSECL on the consumers' security deposit, shall be allowed at the time of
review/truing up.
Hence, the Commission approves the interest and finance charges as nil for FY
2014-15, as shown in the Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 157
November 2014
Table 6-29: Interest and Finance Charges approved for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission
(Projected)
Approved for
FY 2014-15
Interest and Finance charges 16.02 0.00
6.12 Interest on Working Capital
Petitioner’s submission
The Petitioner submitted that owing to the deteriorating financial health of the
Corporation, it may incur working capital crunch and hence, it has claimed interest
on working capital on normative basis as given in Tariff Regulations, 2004. The
Petitioner submitted that it is pertinent to note that it has cash at its disposal,
which is depleting continuously due to working capital requirement and TSECL
may not be able to use the cash for other capital works in the future. The
Petitioner further submitted that forgone opportunity by not claiming working
capital interest and using the cash reserve, results in depletion of cash reserves.
The Petitioner added that there is an opportunity cost involved in using cash for
working capital as the Utility could have invested this cash in securities or bank
deposits, hence, it has proposed to claim Interest on Working capital.
The Petitioner submitted that the working capital requirement has been estimated
for calculating the normative interest charges to be allowed for financing the
working capital requirement. The Petitioner added that as per TERC Tariff
Regulations 2004, the working capital norms have been defined separately for
generation, transmission and distribution functions.
The Petitioner submitted that the Commission, in the previous Tariff Orders, had
disallowed interest on working capital requirement, and requested the
Commission to allow working capital borrowings. The Petitioner further submitted
that from FY 2014-15, it is planning to draw short-term loans from commercial
banks, which will enable it to make timely payments for fuel and power purchase.
The Petitioner submitted that currently it is not able to meet the cash flow demand
owing to working capital shortage and it has resulted in late payments to the
Central Generating Stations.
The considerations for calculation of working capital and interest thereon, as
submitted by the Petitioner, are summarized in the Table below:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 158
November 2014
Table 6-30: Interest on Working Capital for FY 2014-15 as submitted by the Petitioner
(Rs. Crore)
Particulars Share of GFA Norm (Days) FY 2014-15
Generation 31% 45 22.03
Transmission 7% 45 4.93
Distribution 61% 60 61.17
Total 88.13
Interest Rate 14.75%
Interest on working capital 12.99
Accordingly, the Petitioner has requested the Commission to approve interest on
working capital of Rs. 12.99 Crore for FY 2014-15.
Commission’s analysis
As mentioned in detail in the previous Chapters on truing up for FY 2012-13 and
review of FY 2013-14, the Regulations allow for interest on working capital
facilities limited to actual. Further, from the provisional annual accounts of
previous years, the Commission has observed that the Petitioner has not been
paying any interest cost towards working capital loan borrowed from the
Banks/Financial Institutions. In view of the same, the Commission approves
interest on working capital as nil for FY 2014-15. If the Petitioner actually borrows
working capital loan and pays interest on the same, it will be considered by the
Commission based on the actual at the time of review/truing up of FY 2014-15 in
the next Tariff Order.
The Commission, accordingly, approves the interest on working capital as nil for
FY 2014-15, as shown in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 159
November 2014
Table 6-31: Interest on working capital approved for FY 2014-15
Particulars Petitioner’s
submission
Approved in review
of FY 2014-15
Interest on working capital 12.99 0.00
6.13 Reasonable Return
Petitioner’s Submission
The Petitioner submitted that as per TERC Tariff Regulations, 2004, reasonable
return is to be calculated at 5% above the ruling RBI rate or 3% over PLR rate of
SBI or average of any three nationalized banks, whichever is higher. The
Petitioner submitted that it has been observed that the SBI PLR rate as on
November 7th, 2013 was 14.75%, thus, for calculation of reasonable return, the
rate of return for overall paid-up equity capital has been assumed to be 17.75%,
i.e., 3% over SBI PLR.
The Petitioner submitted that the paid up equity capital during FY 2014-15 will
remain at the closing level of FY 2013-14.
The Petitioner submitted that for calculation of reasonable return, the rate of return
for overall paid-up equity capital has been assumed to be 17.75%. The
reasonable return computed on projected paid up capital as submitted by the
Petitioner, is summarized in the Table given below:
Table 6-32: Reasonable Return as submitted by the Petitioner for FY 2014-15
(Rs. Crore)
Particulars
Petitioner’s
submission (Projected)
for 2014-15
Equity Capital as on April 1st, 2014 175.41
Equity Capital as on March 31st, 2015 175.41
Average Equity capital during FY 2014-15 175.41
Rate of Reasonable return 17.75%
Reasonable return during the year 31.14
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 160
November 2014
Thus, the Petitioner has claimed reasonable return of Rs. 31.14 Crore for FY
2014-15.
Commission’s analysis
As elaborated in the previous Chapter on review of FY 2013-14, the Commission
has capped the equity capital for computation of ARR for FY 2014-15 at the same
level as that in FY 2013-14. Accordingly, for approval of ARR for FY 2014-15, the
Commission has considered Rs. 204.70 Crore as equity for FY 2014-15.
Also, as per TERC Tariff Regulations 2004, the Commission in its previous Tariff
Order had considered interest rates at 15.23%, 14.23% and 15.23%, respectively
for generation, transmission and distribution functions. Since, the Petitioner has
not provided the break-up of the equity in generation, transmission and
distribution, it is difficult for the Commission to arrive at the normative reasonable
return of the Petitioner as per the TERC Tariff Regulations 2004. Thus, for the
purpose of approval of ARR of FY 2014-15, the Commission has considered the
break-up of equity in generation, transmission and distribution function in the
same proportion as the proportion of GFA as submitted by TSECL. Further, the
Commission has considered the same interest rates as considered for approval of
reasonable return in the truing up for FY 2012-13 and review for FY 2013-14 in
the earlier Chapters, for the purpose of approval of ARR of FY 2014-15.
Accordingly, the reasonable return approved by the Commission for FY 2014-15 is
shown in the Table below:
Table 6-33: Reasonable Return approved by the Commission for FY 2014-15
(Rs. Crore)
Particulars Average Equity Interest Rate Reasonable
Return
Generation 61.95 15.23% 9.44
Transmission 18.76 14.23% 2.67
Distribution 123.99 15.23% 18.88
Total 204.70 30.99
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 161
November 2014
6.14 Non-Tariff Income
Petitioner’s submission
The Petitioner has included inter-State sale of energy in the non-tariff income for
FY 2014-15. The Commission has approved the revenue from inter-State sale of
Energy separately and has excluded the same from the non-tariff income
The details of non-tariff income submitted by the Petitioner is shown in the Table
below:
Table 6-34: Non Tariff Income as submitted by the Petitioner for FY 2014-15
(Rs. Crore)
Particulars Petitioner’s submission
for 2014-15
Interest from Bank Deposits 38.01
Service Connection Charges 3.19
Total 41.20
Accordingly, the Petitioner has requested the Commission to approve the Non-
Tariff Income projected by it for FY 2014-15.
Commission’s analysis
The Commission has analyzed the Petitioner’s projections of Non-Tariff income.
The Commission has approved the same non-tariff income as approved for FY
2013-14 based on the provisional audited accounts of FY 2013-14. Accordingly,
the Commission approves Rs. 35.40 Crore as non-tariff income for FY 2014-15,
as shown in the following Table:
Table 6-35: Non Tariff Income approved by the Commission for FY 2014-15
(Rs. Crore)
Particulars Petitioner’s
submission
Approved for
FY 2014-15
Interest Income 38.01 25.29
Other Charges 0.00 5.56
Service Connection Charges 3.19 4.55
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 162
November 2014
Particulars Petitioner’s
submission
Approved for
FY 2014-15
Total 41.20 35.40
6.15 ARR for FY 2014-15
Based on the approval of various elements of ARR in this Chapter, the
Commission approves the ARR for FY 2014-15 as Rs. 754.26 Crore, as shown in
the following Table:
Table 6-36: Approved ARR for FY 2014-15
(Rs. Crore)
Particulars Petitioner’s
submission
Approved for
FY 2014-15
Fuel cost 212.20 221.30
Power purchase cost 339.80 359.03
O&M expenses 163.90 156.29
Depreciation 22.06 22.06
Interest and finance charges 16.02 0.00
Interest on working capital 12.99 0.00
Reasonable Return 31.14 30.99
Aggregate Revenue Requirement (ARR) 798.09 789.67
Less: non-tariff income 41.20 35.40
Net Aggregate Revenue Requirement 756.89 754.26
6.16 Revenue from sale of power
Petitioner’s submission
The Petitioner has projected revenue from intra-State sale of power in FY 2014-15
as Rs. 470.34 Crore, and has projected the revenue from inter-State sale as Rs.
198.37 Crore. In the detailed submission of the Petitioner, the Commission
observed that the Petitioner has projected the revenue from intra-State sales
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 163
November 2014
considering the category-wise tariffs approved by the Commission in previous
Tariff Order dated June 25th, 2013, after GoT subsidy, and has considered
subsidy of Rs. 40 Crore from GoT. However, for computation of revenue at
existing tariff for FY 2014-15, the Commission has not considered subsidy from
GoT. The Commission observed that the Petitioner has projected the revenue
from intra-State sale of power considering non-subsidized rates of FY 2013-14 as
Rs. 509.25 Crore.
The revenue from sale of power in FY 2014-15 as submitted by the Petitioner is
shown in the following Table:
Table 6-37: Revenue from sale of power for FY 2014-15 based on submissions of TSECL
Particulars Sales
(MU)
Revenue
(Rs. Crore)
Per Unit
Rate
(Rs./kWh)
Intra-State sale of power 855.12 509.25 5.96
Sale to Manipur and Mizoram 150.40 61.66 4.10
Energy Trading and UI 455.71 136.71 3.00
Total Inter-State Sales 606.11 198.37 3.27
Total Sale of Power by TSECL 1461.23 707.63 4.84
Commission’s analysis
Revenue from intra-State sale of energy in FY 2014-15
The Petitioner has submitted revenue from the intra-State sale of 855.12 MU in
FY 2014-15 as Rs. 470.34 Crore, considering the subsidized rates of FY 2013-14.
As mentioned above, considering the non-subsidised tariff rates for FY 2013-14,
the revenue from intra-State sale of power submitted by the Petitioner is Rs.
509.25 Crore. As against the same, the Commission has projected Rs. 483.48
Crore as revenue from intra-State sales for FY 2014-15 by considering the sales
of 784.42 MU approved by the Commission in this Chapter and the category wise
tariffs approved by the Commission in the previous Tariff Order without the
revenue subsidy from GoT.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 164
November 2014
Revenue from inter-State sale of energy in FY 2014-15
The Petitioner submitted that the inter-State sales for FY 2014-15 have been
estimated using the energy balance. Based on the same, the Petitioner has
projected 606.11 MU to be available in FY 2014-15 for inter-State sales and has
projected revenue of Rs. 198.37 Crore from the same. Based on the Energy
Balance for FY 2014-15 approved by the Commission, the Commission approves
the inter-State sales for FY 2014-15 as 929.87 MU.
It is observed that the Petitioner has projected the revenue of Rs. 61.66 Crore
from sale of 150.40 MU to Manipur and Mizoram at an average rate of Rs. 4.10
per kWh. From the data of actual sales to Manipur and Mizoram in FY 2013-14,
the Commission observed that it has generated revenue of Rs. 41.18 Crore from
sale of 128.58 MU at an average rate of 3.20 Rs./kWh. In view of the same, the
average rate of Rs. 4.10 per kWh considered by the Petitioner for sale of power to
Manipur and Mizoram appear to be unrealistic. Hence, for FY 2014-15, the
Commission has considered the rate for sale of power to Manipur and Mizoram in
FY 2014-15 as Rs. 3.90 per kWh. The Commission approves the quantum of
150.40 MU considered by the Petitioner for sale to Manipur and Mizoram in FY
2014-15. Accordingly, the Commission approves the revenue from sale of power
to Manipur and Mizoram as Rs. 58.66 Crore, as against Rs. 61.66 Crore projected
by the Petitioner.
Based on the total projected intra-State sales of 606.11 MU, and considering the
sale of 150.40 MU to Manipur and Mizoram, the Petitioner has projected 455.71
MU to be available for trading/sale on exchanges. The Commission has approved
higher energy availability of 929.87 MU for intra-State sale considering the
approved intra-State sales, approved T&D loss, own generation, power purchase
and NER loss for FY 2014-15. Considering the energy sales of 150.40 MU to
Manipur and Mizoram, the Commission approves the remaining 779.47 MU as
energy available for trading/sale on exchanges. The Petitioner has projected the
average rate for trading/sale on exchanges as Rs. 3.00 per kWh. Taking into
consideration the actual price on energy on exchanges in recent months, the
Commission approves Rs. 2.92 per kWh as average rate of sale of power through
trading in FY 2014-15, as against Rs. 3.00 proposed by TSECL. Thus, the
Commission approves the revenue from trading of 779.47 MU in FY 2014-15 as
Rs. 227.78 Crore.
In view of the above, the Commission approves the revenue from sale of power in
FY 2014-15 as Rs. 769.92 Crore, as shown in the following Table.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 165
November 2014
Table 6-38: Approved revenue from sale of power in FY 2014-15 at existing tariff
(Rs. crore)
Particulars Sales
(MU)
Revenue
(Rs. Crore)
Per Unit
Rate
(Rs./kWh)
Intra-State sale of power 784.42 483.48 6.16
Sale to Manipur and Mizoram 150.40 58.66 3.90
Energy Trading and UI 779.47 227.78 2.92
Total Inter-State Sales 929.87 286.44 3.08
Total Sale of Power by TSECL 1714.29 769.92 4.49
6.17 Revenue Subsidy from Government of Tripura
The Commission has not considered receipt of any revenue subsidy from GoT
while determining the ARR and revenue gap/surplus for FY 2014-15. However, in
case TSECL receives any subsidy from GoT for FY 2014-15, the same shall be
considered at the time of review/truing up for FY 2014-15.
6.18 Revenue gap/surplus for FY 2014-15
Based on the approved net Aggregate Revenue Requirement of Rs. 754.26 Crore
and approved revenue from sale of power of Rs. 769.92 Crore for FY 2014-15, the
Commission approves the revenue surplus for FY 2014-15 as Rs. 15.65 Crore, as
shown below:
Table 6-39: Approved revenue gap/surplus for FY 2014-15
(Rs. Crore)
Particulars Petitioner’s
submission
Approved for
FY 2014-15
Net Aggregate Revenue Requirement 756.89 754.26
Revenue from sale of power 707.63 769.92
Revenue gap/(surplus) 49.26 (15.65)
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 166
November 2014
6.19 Consolidated revenue gap/surplus
Petitioner’s submission
For calculating the revenue gap, TSECL has considered the gap of Rs. 79.53 Cr.
corresponding to True-up of FY 2011-12 as approved in the Tariff Order of FY
2013-14. TSECL has submitted that the gap for FY 2013-14 has been calculated
by TSECL considering the revised estimates of ARR and revenue from retail and
bulk sales. TSECL has assumed the carrying cost on the gap as 14.75%.
Accordingly, the Petitioner has submitted the consolidated revenue gap as shown
in the following Table:
Table 6-40: Consolidated revenue gap submitted by TSECL in Petition
Particulars FY 2012-13 FY 2013-14 FY 2014-15
Net ARR 543.71 453.09 558.52
Revenue at existing tariff 316.80 364.00 470.34
Subsidy from GoT 40.00 40.00 0.00
Revenue Gap/(Surplus) for the
year 186.92 49.09 48.18
Opening Gap 79.53 291.96 387.74
Carrying Cost @ 14.75% 25.52 46.69 60.75
Closing Gap 291.96 387.74 496.66
As mentioned earlier, it is observed from the Petitioner's computation of revenue
gap for FY 2013-14, the Petitioner has considered subsidized rates of FY 2013-14
and has considered subsidy of Rs. 40.00 Crore from GoT. Accordingly, the
Petitioner has considered revenue from existing tariff as Rs. 470.34 Crore.
However, based on the submission of the Petitioner, revenue from existing tariff
for FY 2014-15 at non-subsidized rates of FY 2013-14 is Rs. 509.25 Crore, which
has been considered by the Commission. Further, there are several errors in the
submission of the Petitioner as regards the consolidated revenue gap, as
elaborated below:
In the submission of ARR for FY 2013-14, the Petitioner has already included the
subsidy of Rs. 40 Crore from GoT. However, the Petitioner has further reduced
such amount of subsidy for computation of revenue gap for FY 2013-14. Hence, in
computation of Gap for FY 2013-14, the Petitioner has made an error of double
accounting of subsidy from GoT. Further, as mentioned earlier, in the computation
of ARR for FY 2013-14, the Petitioner has considered interest on Working Capital
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 167
November 2014
as Rs. 12.67 Crore, however, in its detailed submission as regards to interest on
working capital, the Petitioner has proposed the same as Rs. 10.36 Crore.
Further, as mentioned earlier, in computation of ARR for FY 2013-14, the
Petitioner has considered fuel cost of Rs. 176.71 Crore as a result of an error as
against its own submission of fuel cost of Rs. 176.65 Crore.
The Commission has removed the aforementioned discrepancies from the
Petitioner’s submissions. Accordingly, based on the Petitioner’s submissions and
computations, the consolidated gap projected by the Petitioner works out to Rs.
497.83 Crore, as shown in the following Table:
Tabe 6-41: Consolidated Gap/(Surplus) based on the submission of the Petitioner
Particulars FY 2012-13 FY 2013-14 FY 2014-15
Net ARR 543.71 553.65 756.89
Revenue at existing tariff (Intra-
State) 251.40 364.00 509.25
Revenue from inter-State Sales 65.39 60.62 198.38
Subsidy from GoT 40.00 40.00 0.00
Revenue Gap/(Surplus) for the
year 186.92 89.03 49.26
Opening Gap 79.53 291.96 387.74
Carrying Cost @ 14.75% 25.52 49.63 60.82
Closing Gap 291.96 430.62 497.83
Commission’s Analysis
It is observed that the Petitioner has considered revenue gap of Rs. 79.53 Crore
for FY 2011-12, that has been already approved by the Commission in the
previous Tariff Order, in the determination of consolidated revenue gap for FY
2014-15. Also, the Petitioner has added the total revenue gap for FY 2012-13
submitted by it for determination of consolidated revenue gap for FY 2014-15.
However, the Commission observes that in the previous Tariff Order, the
Commission has already allowed Rs. 79.53 Core for FY 2011-12 and Rs. 53.08
Crore for FY 2012-13, in determination of consolidated revenue gap for FY 2013-
14. In this regard, it is clarified that in the previous Tariff Order, the Commission
had approved Rs. 79.53 Crore as revenue gap for FY 2011-12, Rs. 53.08 Crore
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 168
November 2014
as revenue gap for FY 2012-13 and Rs. 13.99 Crore as Revenue surplus for FY
2013-14. Hence, the Commission had approved the consolidated revenue gap for
FY 2013-14 as Rs. 118.61 Crore, in the previous Tariff Order. Further, the
Commission had approved the tariff for FY 2013-14 in such a manner so as to
allow the Petitioner to recover such consolidated revenue gap of Rs. 118.61 Crore
through tariff in FY 2013-14. In this regard, the Commission has stated as follows
on Page No. 10 of the previous Tariff Order dated June 25th, 2013:
“That the Aggregate Revenue Requirement for FY 2013-14 for Tripura
State Electricity Corporation Limited having its area of supply for
intra-State consumers within the State of Tripura and other inter-State
buyers is approved for Rs. 547.04 Crore. The Revenue Gap of the
Licensee is approved at Rs. 118.61 Crore. Accordingly, the
Commission approved an average tariff increase of 31%”
Further, on Page No. 132 of the Tariff Order, the Commission has stated as
follows:
“The Commission has approved the ARR and revenue gap for FY
2013-14 after detailed scrutiny of the revenue requirement proposed
by TSECL. The Commission has arrived at the revised ARR of Rs
465.40 Crore, Rs 479.39 Crore and Rs 547.04 Crore for FY 2011-12, FY
2012-13 and FY 2013-14 respectively after prudence check (including
power purchase from Palatana) and in accordance with the TERC
Tariff Regulations 2004. The ARR and cumulative revenue gap
approved by the Commission for FY 2013-14 will be met through the
revenues at revised tariffs. It has been estimated that with the
prevailing tariff, TSECL would get Rs. 561.03 Crore during the FY
2013-14 leaving a cumulative deficit of Rs. 118.61 Crore, which can be
met by increasing the tariff of the retail consumers in Tripura. The
average increase in tariff in the State will be Rs. 1.46 per unit by
considering 808.58 MU and the average tariff will stand at Rs. 6.15 per
unit (i.e. Fixed and Energy charges) for the year.”
From the above reproduced extracts of the previous Tariff Order dated June 25th,
2013, it is clear that the Commission has already allowed the revenue gaps of Rs.
79.53 Crore and Rs. 53.08 Crore. Despite that, the Petitioner has again shown
such gaps in the determination of consolidated revenue gap for FY 2014-15. The
Commission emphasises here that the Petitioner should pay proper attention
while preparing the ARR and Tariff Petition to avoid making such glaring errors.
Further, it is observed that while determining the consolidated revenue gap for FY
2014-15, the Petitioner has considered carrying cost of 14.75% on the annual
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 169
November 2014
revenue gaps proposed by it for the corresponding years. It is clarified here that
the Commission has been allowing the recovery of revenue gap/surplus
determined by it in the approved tariffs of the same year in which the gap/surplus
has been determined, and therefore, there is no question of allowing carrying cost
on the revenue gap/surplus approved for TSECL, as there is no delay in allowing
the recovery of the approved gap/surplus through revision in tariffs. In view of the
same, the Commission has not allowed any carrying cost on the revenue gap/
surplus approved.
In view of the above, the Commission approves the consolidated revenue gap for
FY 2014-15, as shown in the following Table:
Table 6-42: Approved consolidated revenue gap for FY 2014-15
(Rs. Crore)
Particulars Approved by the
Commission
Approved revenue gap/(surplus) for FY 2012-13 75.29
Approved revenue gap/(surplus) for FY 2013-14 19.49
Approved revenue gap/(surplus) for FY 2014-15 (15.65)
Less: Revenue gap/(surplus) for FY 2012-13 already
allowed in the previous Tariff Order 53.08
Consolidated revenue gap/(surplus) approved for FY
2014-15 26.05
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 170
November 2014
7 Compliance to Directives of the Commission
7.1 Adherence to the past directives
The Commission had issued four new directives to the Petitioner in the previous
Tariff Order to be complied with apart from old directives issued by the
Commission to the Petitioner in the Tariff Order of FY 2012-13 dated March 28th,
2012. In response to the Commission’s directives, the Petitioner, in its Tariff
Petition has submitted its compliance with the directives. The point-wise status of
compliance by the Petitioner with the directives of the Commission and the
Commission’s views on the same are presented below:
Directive – 1: Voltage wise distribution loss: The Commission directed the
Petitioner to compute the voltage-wise distribution loss at 33 kV, 11 kV and 400
Volts. The Petitioner was directed to submit the voltage-wise distribution loss by
September 30th, 2013.
Compliance
TSECL submitted that it is in the process of metering all the distribution
transformers and implementing the R-APDRP projects and on completion of the
same, base line data will be available for analysis. TSECL submitted that as it is
undertaking metering of distribution transformers, once the projects are
completed, data will be available for the whole year and voltage-wise losses would
be available.
Commission’s Comments
The Petitioner has not completed the baseline work needed to compute the
voltage-wise distribution losses even after more than one year has passed since
the issuance of the previous Tariff Order dated June 25th, 2013, wherein the
Commission had directed the Petitioner to submit the voltage wise loss for its
network. The Petitioner has also not committed any timeline for complying with
this directive. Further, in the Tariff Petition, the Petitioner has submitted T&D loss
of 32.85% and 33.30% for FY 2012-13 and FY 2013-14, respectively, as
compared to the T&D loss of 25% and 22%, respectively, approved by the
Commission. For FY 2014-15, the Petitioner has projected the T&D loss of
35.50%. The actual loss level for previous years and proposed loss level for FY
2014-15 submitted by the Petitioner is too high as compared to the loss level
approved by the Commission in previous Tariff Order. Further, the Petitioner has
also failed to submit any convincing rationale with supporting data before the
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Tripura Electricity Regulatory Commission Page 171
November 2014
Commission for such high T&D loss in its network. Since the analysis of actual
voltage wise loss has not been done because of unavailability of information
regarding voltage-wise loss data, it makes TSECL unable to identify the
areas/feeders containing high distribution loss and take actions accordingly to
reduce the losses. Hence, there is an urgent need to determine the voltage-wise
loss reduction of the network and take actions accordingly to reduce the T&D loss.
In view of the above, the Commission directs the Petitioner to submit progress
report within three months of issuance of this Order showing present voltage-wise
metering status of its network and progress of TSECL in the direction of achieving
metering of voltage-wise distribution loss of its network, and also commit a
timeline for submitting the voltage-wise distribution loss at 33 kV, 11 kV and 400
Volts.
Directive – 2: Capitalization of employee expenses, A&G expenses and
interest expenses: The Commission directed TSECL to capitalize the employee
expenses, A&G expenses and interest expenses incurred for construction of
capital-intensive projects. The Commission directed that the Petitioner should
submit the department-wise employee and A&G expenses to the Commission by
September 30th, 2013 to fix the capitalization rate for the ensuing year.
Compliance
As regards capitalisation of A&G expenses, TSECL submitted that the accounts
and finance department is taking necessary steps to segregate such expenses
and by next financial year (FY 2014-15), capitalisation of such expenses will be
available.
Commission’s comments
TSECL has restricted its reply to capitalisation of A&G Expenses only. TSECL has
not submitted the details of action taken for the capitalisation of employee
expenses and interest expenses. Also, the Commission is not satisfied with the
progress of capitalisation of the A&G expenses. The Commission again directs
that TSECL shall capitalize the employee, A&G and interest expenses incurred for
construction of capital-intensive projects and shall submit the department-wise
employee and A&G expenses before the Commission along with its next Tariff
Petition.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 172
November 2014
Directive – 3: Filing Petition for approval of inter-State tariff for Manipur and
Mizoram to the Commission:
The Commission had observed that billing to Manipur and Mizoram has been
done on provisional basis. The average billing rate (excluding FPPCA) to Manipur
and Mizoram was Rs. 1.94 per unit at the time of issuance of previous Tariff Order
dated June 25th, 2013, which was much below the average generation cost. There
is a clause (clause no. 6.1) in the Power Purchase Agreement that TSECL can
approach the Commission for finalization of tariff for Manipur and Mizoram. In this
regard, the Commission directed TSECL to file Petition before the Commission at
the earliest.
Compliance
TSECL is in the process of reviewing the existing agreement with Manipur and
Mizoram and a Petition in this regard will be filed shortly.
Commission’s comments
The Commission directs the Petitioner to expedite the process of reviewing the
existing Power Purchase Agreement with Manipur and Meghalaya. The Petitioner
shall submit the Petition for finalisation of tariff for Manipur and Mizoram before
the Commission within two months of the issuance of this Order.
Directive – 4: Annual Performance Report (APR): The APR is an important
document for the Commission to judge the actual performance of the Petitioner.
The APR is needed to be submitted before the Commission for approval. TSECL
had lagged behind in this respect and it was directed that APR should be
prepared and got approved by the Commission every year. The Commission from
time to time has raised this issue but the Petitioner’s response on submission of
the APR has not been very encouraging in the past. Therefore, the Petitioner was
strictly directed to comply with this directive in the ensuing years.
Compliance
TSECL has submitted Annual Performance Report for FY 2013-14 along with the
Tariff Petition.
Commission’s Comments
TSECL has submitted APR for FY 2013-14 along with its Tariff Petition. However,
the APR submitted by TSECL is not complete as many fields in the APR has been
left blank by the Petitioner. Further, the Petitioner has only submitted the
information in figures and no relevant reasons in support of the data has been
given in the APR. The Commission directs that at the time of filing the Tariff
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 173
November 2014
Petition for FY 2015-16, the Petitioner should submit more detailed APR with
complete information and reasons supporting the actuals wherever necessary.
Compliance of old directives
In the previous Tariff Order dated June 25th, 2013, the Commission had given its
comments regarding compliance by the Petitioner with the directives given by the
Commission in earlier Tariff Order dated March 28th, 2012. Here, the Commission
has reviewed the compliance to such directives by the Petitioner.
Directive – 5: Timely filing of ARR & Tariff Petition: The Commission had
directed the Petitioner to file its ARR and Tariff Petition for FY 2014-15 by
November 30th, 2013.
Compliance
Petitioner has submitted no reply in this regard.
Commission’s Comments
Despite such clear cut directive to file the Petition on time in accordance with the
TERC Tariff Regulations, 2004, the Petitioner has again failed to file its Tariff
Petition on time. TSECL filed its Tariff Petition for approval of ARR & Tariff for FY
2014-15 on July 23rd, 2013, i.e., around 8 months later than the last day of filing of
Tariff Petition in accordance with TERC Tariff Regulations, 2004. Further, even
after such a delay in filing the Petition, the Petition and supporting information
submitted by TSECL had several discrepancies and gaps, and in view of the
same, the said Petition was not admitted by the Commission. TSECL submitted
the revised data on August 12th, 2014. Further, the revised data submitted by the
Petitioner and supporting additional information submitted along with it was also
not satisfactory as the same also contained several deficiencies. However, in
order to avoid any further delay in tariff determination for FY 2014-15, the
Commission admitted the incomplete and deficient Petition of TSECL. In addition,
despite several reminders by the Commission, the Petitioner was not able to
submit the complete information sought by the Commission.
In view of the above, the Commission directs the Petitioner to submit the Petition
for approval of ARR and Tariff for FY 2015-16 strictly in accordance with the Tariff
Regulations, 2004 and without deficiencies and sticking to the timelines. Further,
the Petitioner should be able to produce all the information sought by the
Commission in a timely manner.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 174
November 2014
Directive – 6: Annual Statement of Accounts
TSECL was directed to prepare the ‘Statement of Accounts’ including balance
sheet, profit & loss account, report of the auditors, asset records and Registers,
etc., along with supporting statements/schedules and submit the same along with
its ARR and Tariff Petition.
Compliance
TSECL has submitted that it is in process of preparing the Statement of Accounts
and will submit the same along with the final CAG audited accounts.
Commission’s Comments
Despite being repeatedly directed by the Commission, the Petitioner has failed to
submit the complete audited ‘Statement of Accounts’ as directed by the
Commission. Further, the Commission notes that, till date, the Petitioner has not
submitted the final audited accounts for all the previous years. Since, the
Petitioner has not submitted the Statement of Accounts duly audited by Statutory
Auditor, the Commission has not been able to conduct final truing up for the past
years. It is worth noticing that for all the years since FY 2009-10, only provisional
truing up has been done and final truing up for all the years since FY 2009-10 is
pending as on date, due to non-submission of the audited annual accounts by
TSECL.
The Commission directs the Petitioner to submit complete Statement of Accounts
duly audited by statutory auditor for all the years from FY 2009-10 to FY 2013-14
by within three months of issuance of this Order.
Directive – 7: Assets and Depreciation Register
TSECL was directed to prepare and submit the Fixed Assets and Depreciation
Register by November 30th, 2013.
Compliance
TSECL has submitted that it is in the process of preparing the Asset Register.
TSECL has submitted that as the updation of such register is a very diligent and
time consuming process, TSECL regrets that the same could not be submitted in
time.
Commission’s Comments
In the absence of the fixed assets and depreciation register, the Commission has
been unable to verify the GFA and Depreciation of the Petitioner. In this Tariff
Order, the Commission has accepted the Petitioner’s submission of fixed assets
and depreciation and has approved the same in determination of ARR for FY
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 175
November 2014
2012-13, FY 2013-14 and FY 2014-15. However, from the next tariff proceedings,
the Commission shall not accept the submission of the Petitioner in this regard in
absence of fixed assets and depreciation register.
The Commission strictly directs the Petitioner to expedite the process of preparing
the asset wise Fixed Assets and Depreciation Register duly audited and submit
the same by within three months of issuance of this Order. Further, the Petitioner
shall produce the same at the time of procedure of determination of ARR and tariff
for FY 2015-16.
Directive – 8: Management Information System (MIS)
The Commission had observed in the previous Tariff Order regarding scope of
improvement in the MIS report of the Petitioner. The Petitioner was directed to
make improvement and prepare the MIS report as per the regulatory
requirements.
Compliance
TSECL has submitted that it is in the process of upgrading all its billing systems
as a part of R-APDRP. A complete MIS system will be available upon completion
of these projects.
Commission’s comments
The Petitioner is directed to submit a report on upgradation of its billing system
within two months of issuance of this Order. In the said report, TSECL should
submit the time line for completion of a compete Management Information
System.
Directive – 9: Collection of past arrears
The Commission had observed that a large amount of arrears are pending from
the Government departments and private consumers. The Commission had
directed the Petitioner that it should pursue with various Government departments
to collect the remaining amount of arrears at the earliest and apprise the
Commission by September 30th, 2013.
Compliance
The Petitioner has failed to submit any reply to this directive of the Commission.
Commission’s comments
The Commission directs the Petitioner to submit the latest status of arrears
pending to be collected within one month of issuance of this Tariff Order.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 176
November 2014
Directive – 10: Transmission and Distribution Loss
The Commission had directed TSECL to take every possible step to reduce the
T&D losses. TSECL was also directed to prepare an action plan for reduction of
the T&D losses and submit the same to the Commission.
Compliance
TSECL has submitted that it has carried out various loss reduction activities as
shown below:
1. Regular anti-theft raids are conducted by TSECL as a measure for theft
reduction. Dedicated special police force has been deputed with TSECL for
helping its technical teams in conducting raids. The police team visits one
division office every day and visits the same division only once in a month.
Hence, practically, the mass raids are conducted in a division only once in a
month.
2. Special courts have been constituted in Tripura for early disposal of cases.
However, unfortunately, not many police cases or FIRs are registered against
theft cases. Anti-theft measures are mainly from the view of restricting or
penalizing cases of direct theft and hooking only, and tampering with the
meters or cases of dishonest abstraction of energy are generally not checked
or registered.
3. TSECL mainly depends on R-APDRP funding for investing in measures
relating to reduction of losses. Other R&M work like conductor replacement,
shifting of distribution transformers at load centres and cable sizing is done as
per the fund availability. Faulty meters are also replaced in routine O&M work.
Commission’s comments
The Commission has taken note of the efforts of TSECL for reduction of T&D loss
in its network. However, the Commission observes that the Petitioner has not
submitted action plan for loss reduction as directed by the Commission. Further,
despite the efforts taken by the Petitioner, the T&D loss of TSECL’s network has
increased in recent years rather than reducing. In the Petition, TSECL has
submitted T&D loss of 32.85% and 33.30% for FY 2012-13 and FY 2013-14 as
compared to the T&D loss of 25% and 22% approved by the Commission
respectively. For FY 2014-15, TSECL has projected T&D loss of 35.50%, which is
unacceptable.
In view of the same, the Commission directs the Petitioner to expedite its efforts
for reducing the T&D loss of its network. Further, in view of the increased T&D
loss, the Commission directs TSECL to submit within three months of issuance of
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 177
November 2014
this Order, its detailed action plan and roadmap for reducing the T&D loss of its
network.
Directive – 11: Capital Expenditure Plan
In the previous Tariff Order dated June 25th, 2014, the Commission had observed
that the Capital Expenditure Plan submitted by the Petitioner in Table 35 and 36 of
last year’s Tariff Petition was merely a reflection of proposal for capital
expenditure and cannot be considered as Capital Expenditure Plan. The
Commission had directed that the Petitioner should review the Capital
Expenditure Plan and Business Plan submitted by other utilities in the Country
and accordingly prepare and submit its Capital Expenditure Plan for FY 2013-14
within 90 days of issuance of last year’s Tariff Order dated June 25th, 2013.
Compliance
The Petitioner has failed to submit any reply to this Directive of the Commission.
Commission’s Comments
Despite being repeatedly directed by the Commission, the Petitioner has again
failed to submit its Capital Expenditure Plan. The Commission strictly directs that
TSECL should review the Capital Expenditure Plan and Business Plan submitted
by other utilities in the country and accordingly prepare and submit its Capital
Expenditure Plan for FY 2015-16 within three months of issuance of this Order.
TSECL shall produce the same during the procedure for determination of ARR
and tariff for FY 2015-16.
Directive – 12: AT&C Loss
The Commission in its Tariff Order for FY 2012-13 had directed the Petitioner to
submit the AT&C loss trajectory for FY 2011-12 and FY 2012-13. However, in the
Tariff Petition for FY 2013-14, the Petitioner had submitted T&D loss and not
AT&C loss, however, the Petitioner had submitted the AT&C losses for FY 2011-
12 and FY 2012-13 in the Annual Performance Report (APR) submitted during the
last year’s tariff proceedings. In the previous Tariff Order dated June 25th, 2013,
the Commission observed that the AT&C loss figures for FY 2011-12 and FY
2012-13 submitted in the APR are varying widely with the figures submitted in the
Tariff Petition. In view of the same, the Commission directed the Petitioner to get
the AT&C loss figures duly audited by the Statutory Auditor and submit the same
by November 30th, 2013. Further, the Commission had directed that the audited
AT&C losses figures should also reflect in their audited Annual Accounts.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 178
November 2014
Compliance
The Petitioner has failed to submit any reply to this directive of the Commission.
Commission’s comments
In its Tariff Petition, the Petitioner has again submitted T&D loss and not AT&C
loss, however, the Petitioner has submitted the AT&C losses for the years from
FY 2010-11 to FY 2013-14 in the APR. In the past, the Commission has observed
that the AT&C loss figures submitted by TSECL need to be certified by the
Statutory Auditor, so that they can be relied upon.
The Commission again directs the Petitioner to get the AT&C losses figures for all
the years from FY 2009-10 to FY 2013-14 audited by the Statutory Auditor and
submit the same before the Commission within two months of issuance of this
Order. TSECL shall also produce the same along during the procedure for
determination of ARR and tariff for FY 2015-16. Further, the audited AT&C losses
figures should also reflect in TSECL's audited Annual Accounts.
7.2 Fresh directives
Directive – 1:
Separate annual accounts for Generation, Transmission, Distribution and
SLDC:
TSECL is a bundled utility undertaking all three functions, viz., Generation
transmission and distribution of electricity. In most of the States of the Country,
the electricity utilities are unbundled in accordance with Section 131 of the
Electricity Act, 2003. Further, for stimulation of competition in the electricity market
through Open Access, which is an underlying spirit of Electricity Act, 2003,
unbundling of the state electricity utility is necessary. In view of the same, the
Commission views separation of accounts of generation, distribution, transmission
and load dispatch functions as a first step in the direction of unbundling of TSECL.
In view of the same, the Commission directs TSECL to submit separate accounts
for generation, distribution, transmission and SLDC functions along with the Tariff
Petitions in the future. Further, TSECL is directed to submit by March 31st, 2015, a
report on its roadmap for unbundling of the corporation.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 179
November 2014
Directive – 2:
Submission of final truing up Petition for years from FY 2009-10 to FY 2012-
13:
As mentioned earlier, truing for years since FY 2009-10 has been done on
provisional basis only, based on the provisional annual accounts of TSECL. Final
truing-up based on annual accounts duly audited by Statutory Auditors has been
pending for years since FY 2009-10 because of TSECL’s inability to submit the
audited annual accounts for the previous years. During the regulatory proceedings
for this Tariff Order, TSECL has conveyed that the final annual accounts duly
audited by Statutory Auditors are available for years till FY 2011-12. Further, as
mentioned earlier, the Commission has directed TSECL to produce annual
accounts for all the years from FY 2009-10 to FY 2013-14 duly audited by
Statutory Auditors along with the Tariff Petition for FY 2015-16.
It is directed that within four months of issuance of this Order, TSECL should
submit the Petition for final truing up for all the years from FY 2009-10 to FY 2012-
13 based on the annual accounts of these years duly audited by Statutory
Auditors.
Directive – 3:
Submission of Report regarding status of consumer metering and roadmap
for achieving 100% consumer metering:
TSECL is directed to submit within two months of issuance of this Order a report
on status of metering of consumers and roadmap for achieveing 100% consumer
metering in the State of Tripura. The report shall include the information regarding
number of unmetered consumers in the State and will also include the roadmap of
the Corporation to achieve 100% metering in the State. TSECL is directed to
submit the report within two months of issuance of this Order.
Directive – 4:
Submission of minutes of meeting of all distribution circles:
The commission understands that to bring better functional efficiency of the
distribution fuction of TSECL, there is a need for conducting regular meetings of
permanent and contractual employees of the Corporation at all of its distribution
circles. TSECL is directed to conduct meetings at all of its distribution circles every
month and submit the minutes of the meeting to the Commission every month
which shall include the following:
Circle wise actual loss levels
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Tripura Electricity Regulatory Commission Page 180
November 2014
Loss reduction efforts,
Efforts towards timely billing of consumers
Efforts towards timely revenue collection
Targets given to the officers of the Corporation and compliance of these
targets by the officers
Actions taken on the officers failing to achieve the given targets
Directive – 5:
Conducting internal audit of the Corporations assets/offices:
The Commission intends TSECL to keep track of its incomes and expenses as
well as its assets at various offices. Hence, the Commission directs TSECL to
conduct an internal audit of its offices at different places and submit the report of
the same to the Commission by June 30th, 2015 indicating procedural
discrepancies in following standard procedures as well as actions taken for its
rectification.
Directive – 6:
Conducting internal commercial audit of TSECL’s functions:
The Commission observes that TSECL has been making huge financial losses.
The Commission intends the corporation to be more efficient in its fuctions.
Hence, the Commission directs that TSECL shall conduct an internal commercial
audit of its generation, transmission and distribution fuctions and submit the report
of the same to the Commission by June 30th, 2015. However, action for normal
commercial audit of its business by CAG shall be conducted as per norms.
Directive – 7:
Tariff Petition for diesel generating station:
The revenue requirement related to diesel generating statition of TSECL has not
been considered as part of this Tariff Order. The Petitioner is directed to file a
separate tariff Petition with all the relevant data for its diesel generating station.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 181
November 2014
8 Tariff Principles and design
8.1 Tariff principles
The Commission has been guided by the provisions of the Electricity Act, 2003,
the National Electricity Policy (NEP), the Tariff Policy (NTP), the Regulations on
Terms and Conditions of Tariff issued by the Central Electricity Regulatory
Commission (CERC) and the TERC Tariff Regulations, 2004 notified by the
Commission.
Section 61 of the Act lays down the broad principles and guidelines for
determination of retail supply tariff. The guiding principles as laid down in Section
61 of the Act are as follows:
1. The principles and methodologies specified by the Central Commission for
determination of the tariff applicable to generating companies and transmission
licensees;
2. The generation, transmission, distribution and supply of electricity are
conducted on commercial principles;
3. The factors which would encourage competition, efficiency economical use of
the resources, good performance and optimum investments;
4. Safeguarding of consumers„ interest and at the same time, recovery of the
cost of electricity in a reasonable manner;
5. The principles rewarding efficiency in performance;
6. Multi-year tariff principles;
7. That the tariff progressively, reflects the cost of supply of electricity, and also
reduces and eliminates cross-subsidies within the period to be specified by the
Appropriate Commission;
8. The promotion of co-generation and generation of electricity from renewable
sources of energy;
9. The National Electricity Policy and Tariff Policy.
The Tariff Policy mandates that the Multi-Year-Tariff (MYT) framework be adopted
for determination of tariff from April 1st, 2006. However, the Commission is not in a
position to introduce MYT Regime in the State mainly because of lack of requisite
and reliable data. Even the audited accounts have not been submitted by TSECL
from FY 2009-10 onwards, and the final truing up is pending from FY 2009-10
onwards. The present MIS and regulatory reporting system of TSECL are
inadequate for such an exercise. There has been no study to assess voltage-wise
losses in the absence of metering of all feeders, distribution transformers and
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 182
November 2014
consumers. Technical and commercial losses are yet to be segregated and
quantified voltage-wise. Even transmission losses and distribution losses have not
been segregated. The Commission has directed TSECL to chalk out a long-term
action plan for reduction of T&D losses. Under these conditions, it would not be
practicable to implement the MYT framework at this point in time.
Clause 8.3 of the Tariff Policy stipulates the following principles for tariff design:
"The State Governments can give subsidy to the extent they consider
appropriate as per the provisions of the Section 65 of the Act. Direct
subsidy is a better way to support the poorer categories of the consumers
than the mechanism of cross subsidizing the tariff across the board.
Subsidies should be targeted effectively and in transparent manner.
Accordingly, the following principles would be adopted:
1. In accordance with the National Electricity Policy, consumers below
poverty line who consume below a specified level, say 30 units per month,
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. This provision will be re-examined after five years.
2. For achieving the objective that the tariff progressively reflects the cost of
supply of electricity, the SERC would notify the roadmap, within six months
with a target that latest by the end of the year 2010-11 tariffs are within
±20% of the average cost of supply. The road map would have
intermediate milestones, based on the approach of a gradual reduction in
cross subsidy.
For example, if the average cost of service is Rs.3.00 per unit, at the end of
FY 2010-11, the tariff for the cross subsidized categories excluding those
referred to in para 1 above should not be lower than Rs.2.40 per unit and
that for any of the cross subsidizing categories should not go beyond
Rs.3.60 per unit.
3. While fixing tariff for agricultural use, the imperatives of the need of using
ground water resources in a sustainable manner would also need to be
kept in mind in addition to the average cost of supply. Tariff for agricultural
use may be set at different levels for different parts of the state depending
on the condition of the ground water table to prevent excessive depletion of
ground water...”
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 183
November 2014
The mandate of the Tariff Policy that the tariff should be within ±20% of the
average cost of supply by FY 2010-11 has been the guiding principle. In this Tariff
Order, the Commission has issued a directive to the Petitioner to submit progress
report showing present status of voltage-wise metering and progress of TSECL in
the direction of achieving metering of voltage-wise distribution loss of its network.
Hence, in working out the cost of supply, the Commission has adopted the basis
of average cost of supply.
8.2 Proposal of TSECL for revised tariff
TSECL submitted that the tariffs for a utility should reflect the cost and must be
based on cost of supply. TSECL submitted that while designing the tariff for the
State of Tripura, the tariffs have been rationalised such that they are in line with
the cross-subsidy targets set by the Tariff Policy.
TSECL submitted that the ommission telescopic tariff introduced by the
Commission vide its previous Tariff Order has been accepted positively by the
consumers of the State. In addition, introduction of special category for Mobile
Towers have helped TSECL in rationalising the tariffs in the State.
Based on the ARR and revenue gap projected by TSECL for FY 2014-15, TSECL
has proposed the following category-wise tariffs:
Table 8-1: Category wise tariffs proposed by TSECL
Category Fixed Charge
Energy
Charge
(Rs/kWh)
A. Kutir Jyoti Rs. 87 per consumer per month -
B. DOMESTIC
single phase
Domestic (Rural): 0-30 unit Rs. 45 per consumer per month 4.35
Slab-1, upto 50 units Rs. 68 per consumer per month 5.10
Slab-2, next 100 units Rs. 83 per consumer per month 6.20
Slab-3, next 150 units Rs. 90 per consumer per month 6.40
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 184
November 2014
Category Fixed Charge
Energy
Charge
(Rs/kWh)
Slab-4, 300 units and
upwards Rs. 90 per consumer per month 7.50
Three phase (compulsory
above 3 kW) : All units Rs. 105 per kW per month 7.50
C. Commercial
Single phase
Small Commercial / Pan
shop: 0 -30 unit Rs. 48 per consumer per month 6.00
Slab 1 : 0 - 150 unit Rs.55 per consumer per month 6.70
Slab 2 : above 150 unit Rs. 85 per consumer per month 7.40
Semi-commercial: All units Rs. 85 per consumer per month 7.40
Three phase (Compulsory
above 3 kW): All units Rs. 85 per kW per month 7.45
Three phase Group
consumers: All units Rs. 85 per kW per month 7.48
D. Mobile Towers Rs. 120 per kW per month 6.98
E. Irrigation
Upto 5 H.P. : All units Rs. 30 per kW per month 4.60
Above 5 H.P. : All units Rs. 60 per kW per month 5.50
F. Water Works Rs. 48 per kW per month 6.85
G. Industrial
Upto 5 H.P.(E-R/5) : All
units Rs. 33 per kW per month 5.50
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 185
November 2014
Category Fixed Charge
Energy
Charge
(Rs/kWh)
Upto 5 H.P.(E-U/5) : All
units Rs. 30 per kW per month 5.90
Above 5 - 20 H.P. : All units Rs. 45 per kW per month 6.72
Above 20 - 100 H.P. : All
units Rs. 60 per kW per month 6.90
Above 100 H.P. : All units Rs. 75 per kW per month 6.99
H. Tea, Coffee and
Rubber Garden Rs. 85 per kW per month 6.95
I. Bulk Supply Rs. 85 per kW per month 6.98
J. Public Lighting
Panchayat : All units Rs. 80 per kW per month 5.85
Nagar Panchayat /
Municipal Area : All units Rs. 110 per kW per month 6.85
Total Public Lighting
J. Special Public Utility Rs. 95 per kW per month 5.85
Apart from the above, TSECL has proposed a new tariff category of Bulk
Domestic. TSECL has submitted that the real estate sector in Tripura is rapidly
expanding and many group housing complexes have come up in the urban areas.
TSECL has proposed to facilitate such housing complexes, colonies and introduce
special tariffs for these consumers. TSECL submitted that tariff for such
consumers must take into account that the connections are at 11 kV at the point of
supply and large number of consumers are added without the need for elaborate
distribution network. TSECL has proposed tariffs for such new tariff category as
shown in the following Table:
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 186
November 2014
Table 8-2: Tariff proposed by TSECL for proposed new tariff category of Bulk Domestic consumers
Slab Fixed Charge (Rs/kW
of recorded demand)
Energy Charge
(Rs/kWh)
For consumption in a month not
exceeding 300 units per
flat/dwelling unit (DU)
70 5.20
For consumption in a month
between 301-600 units per flat/DU 70 5.90
For consumption in a month of
601 units or more per flat/DU 70 6.50
8.3 Tariff approved by the Commission
8.3.1 Existing Tariff Rates
The existing tariff rates are presented in the following Table:
Table 8-3: Existing tariff rates
Sl. No.
Consumer Category / Slabs
Tariff for FY 2013-14 Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
A.
Kutir Jyoti
Rs. 62.00 / Connection / month Rs. 8.00 /
Connection
/ month
Rs. 54.00 /
Connection /
month
B. Domestic
Domestic (rural): 0-30
unit
Rs. 15 /
Connection / month 3.75 0.65 3.10
Slab 1: upto 50 Units Rs. 25 /
Connection / month 4.50 0.65 3.85
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 187
November 2014
Sl. No.
Consumer Category / Slabs
Tariff for FY 2013-14 Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
Slab 2: 51 - 150 units Rs. 40 /
Connection / month 5.60 0.50 5.10
Slab 3: 151 - 300 units Rs. 50 /
Connection / month 5.80 - 5.80
Slab 4: 301 units
onwards
Rs. 50 /
Connection / month 6.90 - 6.90
Three phase
(Compulsory above 3
kW): All units
Rs. 50 / kW /
month 6.90 0.20 6.70
C. Commercial
Small Commercial /
Pan shop: 0-30 unit
Rs. 25 /
Connection / month 5.50 0.60 4.90
Slab 1: upto 150 units Rs. 45 /
Connection / month 6.20 0.50 5.70
Slab 2: 151 units
onwards
Rs. 60 /
Connection / month 6.90 - 6.90
Semi Commercial: All
units
Rs. 60 / kW /
month 6.90 0.10 6.80
Three Phase
(Compulsory above 3
kW): All units
Rs. 60 / kW /
month 6.95 0.10 6.85
Three Phase – Group
Consumer: All units
Rs. 60 / kW /
month 6.98 0.18 6.80
D. Mobile Tower: All
units
Rs. 120 / kW /
month 6.98 - 6.98
E. Irrigation
Upto 5 H.P: All units
Rs. 30 / kW /
month 4.60 1.30 3.30
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 188
November 2014
Sl. No.
Consumer Category / Slabs
Tariff for FY 2013-14 Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
Above 5 H.P. : All
units
Rs. 60 / kW /
month 5.50 1.30 4.30
F. Water works: All
units
Rs. 40 / kW /
month 6.15 1.30 4.85
G. Industrial
Up to 5 HP (E-R/5): All
units
Rs. 25 / kW /
month 5.50 0.10 5.40
Up to 5 HP (E-U/5): All
units
Rs. 30 / kW /
month 5.90 0.10 5.80
Above 5 to 20 HP: All
units
Rs. 45 / kW /
month 6.72 0.12 6.60
Above 20 to 100 HP:
All units
Rs. 60 / kW /
month 6.90 0.10 6.80
Above 100 HP: All
units
Rs. 75 / kW /
month 6.99 0.09 6.90
H. Tea, Coffee and
Rubber Gardens: All
units
Rs. 75 / kW /
Month 6.95 0.30 6.65
I. Bulk Supply: All
units
Rs. 75 / kW /
Month 6.98 - 6.98
J. Public Lighting
Public Lighting
(Panchayat)
Rs. 30 / kW /
Month 5.15 0.55 4.60
Public Utility (Nagar
Panchayat /
Municipality)
Rs. 60 / kW /
Month 6.15 0.55 5.60
K. Special Public Utility
Special Public Utility Rs. 30 / kW / 5.15 0.70 4.45
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 189
November 2014
Sl. No.
Consumer Category / Slabs
Tariff for FY 2013-14 Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
(Crematorium) Month
Special Public Utility
(Emergency Water
Pumping, Drainage
Dewatering etc.)
Rs. 30 / kW /
Month 5.15 0.70 4.45
8.3.2 Approved Tariff Rates
In view of the positive response from the consumers as well as TSECL to the
telescopic tariff introduced in the previous Tariff Order, the Commission continues
the telescopic tariff for the domestic and non-domestic categories, which is
prevailing in most of the States in the country.
The Petitioner has proposed a new tariff category for Bulk Domestic consumers.
However, the Petitioner has not submitted important information such as number
of consumers, connected load, specific consumption, total sales, etc., for this
proposed consumer category, which is necessary to estimate the energy sales as
well as revenue from this consumer category. Further, the introduction of Bulk
Domestic category would result into reduction in number of consumers and total
sales to Domestic category. Such estimation requires reliable information from the
Petitioner such as total number of bulk supply consumers in the State, average
number of domestic connections pertaining to one Bulk Domestic connection, etc.
In view of the lack of such information, the Commission directs the Petitioner to
submit detailed analysis regarding proposed Bulk Domestic consumer category in
the Tariff Petition for FY 2015-16. In this Tariff Order, the Commission has not
introduced the new Bulk Domestic category, as proposed by TSECL.
The Commission made following changes in the tariff schedule:
(a) The maximum allowable consumption of the Kutir Jyoti category has been
changed from 16 kWh/month to 15 kWh/month.
(b) The maximum allowable consumption of the rural domestic category has
been changed from 30 kWh/month to 50 kWh/month.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 190
November 2014
(c) The maximum allowable consumption of the Small Commercial / Pan Shop
category has been changed from 30 kWh/month to 50 kWh/month.
As elaborated in the earlier Chapters of this Order, the Commission has approved
the ARR after truing up for FY 2012-13, review of FY 2013-14 and projection of
ARR for FY 2014-15 and resultant consolidated revenue gap for FY 2014-15 after
detailed scrutiny of the revenue requirement proposed by TSECL. The
Commission has approved the ARR of Rs 461.55 Crore, Rs 558.34 Crore, and Rs
754.26 Crore for FY 2012-13, FY 2013-14, and FY 2014-15, respectively after
prudence check and in accordance with the TERC Tariff Regulations, 2004.
Further, the Commission has approved the revenue for FY 2012-13 and FY 2013-
14 as Rs. 386.27 Crore and Rs. 538.34 Crore, respectively. The Commission has
approved the total revenue for FY 2014-15 as Rs. 769.92 Crore based on
approval of revenue from intra-State sales at existing tariff as Rs. 483.48 Crore
and approval of revenue from inter-State sales as Rs. 286.44 Crore. Accordingly,
the Commission has approved Rs. 75.29 Crore as revenue gap for FY 2012-13,
Rs. 19.49 Crore as revenue gap FY 2013-14, and Rs. 15.65 Crore as revenue
surplus for FY 2014-15 at existing tariff. Further, in view of the fact that the
revenue gap of Rs. 53.08 Crore for FY 2012-13 has already been allowed by the
Commission in the previous Tariff Order, the Commission has approved the
consolidated revenue gap of Rs. 26.05 Crore for FY 2014-15 at existing tariff.
Thus, the total approved revenue requirement from intra-State sale for FY 2014-
15 is Rs. 509.52 Crore. The Commission has approved total intra-State energy
sales of 784.42 MU for FY 2014-15. For recovery of Rs. 509.52 crore from intra-
State sales in FY 2014-15, the average cost of supply as well as the average
billing rate for FY 2014-15 for intra-State sales approved by the Commission
works out to Rs. 6.50 per kWh, which implies an average tariff increase of Rs.
0.84 per kWh over subsidized tariff of FY 2013-14.
The category-wise tariffs approved by the Commission for FY 2014-15 are as
follows:
A: Kutir Jyoti
Applicability
Kutir-Jyoti connection is covered under scheme of the State Government or
Central Government. Maximum connected load of 120 Watt (60 watt x 2 points)
and maximum monthly consumption of 15 kWh is allowed for this category. If
consumption of a Kutuir Jyoti Consumer in a month increases beyond 15 kWh,
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 191
November 2014
then such consumer will be charged as per tariff rates applicable to normal
Domestic Category for that month.
Tariff:
Particulars Fixed Charge
For consumption upto 15 kWh/month Rs. 62 / connection / month
I. If, during any billing period, the consumption exceeds the stipulated 30
kWh/month, the consumers will be considered as if they are shifted to the
next appropriate Domestic category on telescopic tariff structure.
II. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
III. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
IV. Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable
will be charged extra.
V. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
B. Domestic
Applicability
Electric service connection related to consumption of electricity for lights, all types
of fans, heating devices, television, radio, refrigerator, air conditioner and all other
appliances for consumers' own domestic use but not for commercial purpose,
educational institutions owned or aided by State/Central Government and all
Government hospitals and all hospitals owned by charitable institutions (not
maintained for commercial purposes), as approved and notified by the State
Government.
Tariff
Sub-category / Slab Energy Charge Fixed Charge
Domestic (rural): 0-50 unit 4.03 Rs./kWh Rs. 15 / Connection /
month
Slab 1: upto 50 units 4.84 Rs./kWh Rs. 25 / Connection /
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 192
November 2014
month
Slab 2: 51 - 150 units 5.98 Rs./kWh Rs. 40 / Connection /
month
Slab 3: 151 - 300 units 6.16 Rs./kWh Rs. 50 / Connection /
month
Slab 4: 301 units onwards 7.20 Rs./kWh Rs. 50 / Connection /
month
Three phase (Compulsory above
3 kW): All units
7.20 Rs./kWh Rs. 50 / kW / month
Consumers in Domestic (Rural) and Slab 1 to Slab 4 will be billed as per
telescopic tariff structure, as explained below.
If an urban domestic consumer consumes 330 units in a month, his/her applicable
Fixed Charge would be Rs. 50 for the month and applicable energy charge will be
as shown in the following Table:
Units
Consumed
Energy Charge
(Rs./kWh)
Total amount
(Rs.)
Upto 50 units 50 4.84 242.00
Next 100 units 100 5.98 598.00
Next 150 units 150 6.16 924.00
301 units onwards 30 7.20 216.40
Total 330 1980.00
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 193
November 2014
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
Note:
If a portion of the household is used for the conduct of any purpose other than
those specified above, the entire consumption shall be billed under the
Commercial/Industrial category as applicable.
C. Commercial
Applicability
Electric service connection related to consumption of electricity for lights, all types
of fans, heating devices, television, radio, refrigerator, air conditioner, lift motors,
pumps and all other appliances used for commercial purposes maintained for
private gain including other small power, supply of power to Cinema Hall,
Auditorium, Stadium, Nursing Home, Pathological & Clinical Laboratories,
Chamber of Medical Practitioners, Advocates/Consultant Engineers/Chartered
Accountants and similar others, Private Educational Institutions, Hospitals, etc.
Tariff
Sub-category / Slab Energy Charge Fixed Charge
Small Commercial / Pan shop:
0-50 unit*
Rs. 5.93 /kWh Rs. 25 / Connection /
month
Slab 1: upto 150 units Rs. 6.69 /kWh Rs. 45 / Connection /
month
Slab 2: 151 units onwards Rs. 7.25 /kWh Rs. 60 / Connection /
month
Semi Commercial: All units Rs. 7.25 / kWh Rs. 50 / kW / month
Three Phase (Compulsory
above 3 kW): All units
Rs. 7.45 / kWh Rs. 50 / kW / month
Three Phase – Group Consumer:
All units Rs. 7.53 / kWh Rs. 50 / kW / month
Note: * if consumption exceeds beyond 50 unit in any month, the consumer will be
treated as consumer of next slab for that month.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 194
November 2014
Consumers in Slab 1 and Slab 2 will be charged as per telescopic tariff structure
as explained below.
If, a commercial consumer consumes 330 unit in a month, his/her applicable fixed
charge shall be Rs. 60 for the month and energy charge shall be as shown in the
following Table:
Units
Consumed
Energy Charge
(Rs./kWh)
Total amount
(Rs.)
Upto 150 units 150 6.69 1003.50
151 units onwards 180 7.25 1305.00
Total 330 2308.50
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
D. Mobile Towers
Applicability
Electric service connection related to consumption of electricity in Mobile Tower
and metered on HT supply end or on L.T. supply plus 3% transformer loss.
Tariff
Category Energy Charge Fixed Charge
Mobile Tower: All units Rs. 7.34 / kWh Rs. 125 / kW / month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 195
November 2014
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
E. Irrigation
Applicability
Applicable for motive power for irrigation including the power consumed for light
and fans in pump house for irrigation.
Tariff
Sub-Category Energy Charge Fixed Charge
Upto 5 H.P: All units Rs. 4.95 / kWh Rs. 30 / kW / month
Above 5 H.P. : All units Rs. 5.95 / kWh Rs. 60 / kW / month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
F. Water works
Applicability
Applicable for motive power for Water Works including the power consumed for
light and fans in pump house for Water Works for all units consumed.
Tariff
Sub-Category Energy Charge Fixed Charge
Water Works: All units Rs. 6.65 / kWh Rs. 40 / kW / month
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 196
November 2014
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
G. Industrial
Applicability
Electric service connection related to supply/consumption of electricity for
industrial purpose, each installation having motor and other industrial appliances,
Battery Charger, Welding Transformer, etc., including the power consumed for
light & fan in an industry.
Tariff
Sub-Category Energy Charge Fixed Charge
Up to 5 HP (E-R/5): All units Rs. 5.93 / kWh Rs. 25 / kW / month
Up to 5 HP (E-U/5): All units Rs. 6.36 / kWh Rs. 30 / kW / month
Above 5 to 20 HP: All units Rs. 7.10 / kWh Rs. 45 / kW / month
Above 20 to 100 HP: All units Rs. 7.24 / kWh Rs. 60 / kW / month
Above 100 HP: All units Rs. 7.25 / kWh Rs. 75 / kW / month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 197
November 2014
H. Tea, Coffee and Rubber Gardens
Applicability
Electric service connection related to consumption of electricity for Tea, Coffee
and Rubber Plantation/Garden for utilisation of electric power for factory and
irrigation in the estate including the power consumed for lights and fans, in and
around the factory premises for all units.
Tariff
Sub-Category Energy Charge Fixed Charge
Tea, Coffee and Rubber
Gardens: All units Rs. 7.50 / kWh Rs. 75 / kW / Month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
I. Bulk Supply
Applicability
Electric service connection related to consumption of electricity to the
organizations and establishments having total connected load of 25 kVA or above,
such Institutions, School, College, University, Defence installations, Railways, All
India Radio, Office complex Departmental, Colony, Dairy with Chilling Plant,
Doordarshan, Cold storage, who are maintaining LT distribution system and
having mixed load but desirous to be bulk power supply consumers based on bulk
power supply contract agreement and metered on HT supply end or on L.T.
supply plus 3% transformer loss.
Tariff
Sub-Category Energy Charge Fixed Charge
Bulk Supply: All units Rs. 7.33 / kWh Rs. 75 / kW / Month
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 198
November 2014
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
J. Public Lighting
Applicability
Electric service connection related to consumption of electricity for Public Lighting
for Panchayat and Nagar Panchayat /Municipal area.
Tariff
Sub-Category Energy Charge Fixed Charge
Public Lighting (Panchayat) Rs. 5.55 / kWh Rs. 30 / kW / Month
Public Utility (Nagar Panchayat /
Municipality) Rs. 6.63 / kWh Rs. 60 / kW / Month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made after the due
date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
K. Special Public Utility
Applicability
Special public utility for crematorium, emergency water pumping, drainage,
dewatering, etc., for all units consumed.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 199
November 2014
Tariff
Sub-Category Energy Charge Fixed Charge
Special Public Utility (Crematorium) Rs. 5.80 / kWh Rs. 45 / kW / Month
Special Public Utility (Emergency
Water Pumping, Drainage,
Dewatering, etc.)
Rs. 5.80 / kWh Rs. 45 / kW / Month
I. Rebate: A rebate of 2% on the total billing amount will be allowed to the
consumer for prompt payment made on or before the due date.
II. Surcharge for delayed payment: Surcharge @ 2% per month or part
thereof at simple interest shall be levied, if payment is made in after the
due date.
III. Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable
will be charged extra.
IV. The Tariff does not include any tax or duty levied by the Government,
which will be charged at actual as and when applicable.
TOD Tariff
Applicability
All consumers under Industrial, Tea/Coffee/Rubber Gardens, Bulk Supply, Water
Works and Irrigation categories would have the option of taking TOD tariff,
wherein the following rates would be applicable.
From To Period Energy Charge
5:00 A.M. 5:00 P.M. Normal Normal Rate
5:00 P.M. 11:00 P.M. Peak 140% of the normal rate
11:00 P.M. 5:00 A.M. Off-peak 60% of the normal rate
N.B: Any error or required corrections noticed may be pointed out to the
Commission within 15 days of issuance of the Tariff Order.
8.4 Approved miscellaneous and other charges
TSECL has proposed the miscellaneous and other charges for FY 2014-15 same
as that approved for FY 2013-14. In view of the increased cost of metering, the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 200
November 2014
Commission has increased some of the meter rent and connction/disconnection
related charges. Accordingly, the Commission approves the miscellaneous and
other charges for FY 2014-15, as shown in the Table below:
Table 8-4: Approved miscellaneous and other charges for FY 2014-15
Sl.
No. Charge
Approved for FY 2014-
15
Category-I:- MISCELLANEOUS CHARGES
A The tariff for temporary supply for lights and
fans for festival, ceremonies, public meeting
shall be charged at the following rate, namely
:-
i. Net Rs. 6.00 / kWh
ii. Rebate Rs. 0.10 / kWh
iii. Gross Rs. 5.90 / kWh
N.B: The minimum charge for each
installation which shall be paid in advance
shall be
Rs. 60/- per day per kW
of contracted load or a
fraction thereof
B The tariff for temporary supply for lights &
fans to commercial establishment which shall
include temporary Cinema, Theater, Circus,
Exhibition, Fare shall be charged at the
following rate, namely:-
i. Net Rs. 7.00 / kWh
ii. Rebate Rs. 0.10 / kWh
iii. Gross Rs. 6.90 / kWh
N.B: The minimum charge for each
installation which shall be paid in advance
shall be
Rs.60/- per day per KW
of contracted load or a
fraction thereof
Category: Other Charges
1. The monthly meter rent for different phases
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 201
November 2014
Sl.
No. Charge
Approved for FY 2014-
15
shall be at the following rate, namely:-
i. For single phase meter not exceeding 10
Amp -
Rs. 10.00
ii. For three phase meter - Rs. 20.00
iii. For three phase meter with C.T. Rs. 40.00
iv. For HT metering equipment i.e. kWh meter
with MDl & KVR supplied by the Deptt. -
Rs. 250.00
v. For Trivector meter- Rs. 400.00
vi. For TOD meter Rs. 400.00
2. The charges for testing of meter at the
request of consumer for different phase shall
be at the following rate, namely:-
i. For each single phase meter- Rs. 50.00
ii. For each three phase meter - Rs. 100.00
iii. For each HT meter - Rs. 250.00
Provided that after testing it is found that the
meter has no defect, and it is in order.
3. The charges for replacement of meter owing
to temporary increase of load which shall be
paid in advance shall be at the following
rates, namely:-
i. For single phase Rs. 100.00
ii. For three phase Rs. 250.00
4. The charge for replacement of fuse at
consumer premises.
Nil
5. The charges for installation of subtraction
meter & additional meter at consumer's meter
board shall be NOTE- Where two or more
Rs. 250.00
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 202
November 2014
Sl.
No. Charge
Approved for FY 2014-
15
meters are installed against one connection
instead of one meter to suit the convenience
of the consumer, reading of the main meter
will be taken and billed for.
6. The monthly meter rent for an additional
meter shall be at the following rates, namely:-
i. For single phase Rs. 15.00
ii. For three phase Rs. 30.00
7. There shall be no charge for test, inspection
and connection of a new installation. But for
any further test or inspection which may be
found necessary owing to any fault in the
installation or due to non- compliance withthe
condition of supply the charge for each
additional test shall be
Rs. 200.00
8. The charges for disconnection on consumers
request shall be at the following rate,
namely:-,
i. For single phase Rs. 100.00
ii. For three phase Rs. 150.00
iii. For Bulk/HV/EHV Rs. 200.00
9. The charges for reconnection on consumers
request shall be at the following rates,
namely:-
i. For single phase Rs. 150.00
ii. For three phase Rs. 200.00
iii. For Bulk/HV/EHV Rs. 250.00
10. The charges for temporary connection which
shall be non refundable for all categories of
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 203
November 2014
Sl.
No. Charge
Approved for FY 2014-
15
load through a meter within permissible
distance from the electric supply main shall
be at the following rates, namely:-
i. For 220-230V(i.e. Single Phase connection) Rs. 300.00 per
installation
ii. For 380-400V(i.e. 3-phase, 4-wire
connection).
Rs. 500.00 per
installation
N.B: (i) The consumer shall supply all
materials required for service lines as may be
approved by licensee, from the nearest pole
of the supply point. There shall be no
disconnection charge and meter rent for
temporary connection.
N.B: (ii) For temporary. Connection the
consumer shall pay as security deposit of
Rs.750.00 for single phase or Rs.1500.00 for
three phase supply which is refundable after
disconnection of the temporary connection
and final payment of the energy bill by
consumer.
N.B: (iii) For the purpose of this clause,
temporary connection means a connection
for a continuous period not exceeding 15
days.
11. The charge for changing of meter by a larger
capacity at the request of consumer in
respect of permanent connection shall be at
the following rates, namely:-
i. For 220-230V(Single phase) Rs. 150.00
ii. For 380-400V(3-phase, 4-wire). Rs. 400.00
The charge for changing the position the
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 204
November 2014
Sl.
No. Charge
Approved for FY 2014-
15
meter & the board within the same building at
the request of the consumer when no
addition in the service line is required shall be
at tile following rates, namely:-
i. For 220-230V(Single phase) Rs. 200.00
ii. For 380-400V(3-phase, 4-wire). Rs. 400.00
13. Charges for calibration of check meter upon
request of consumer.
Rs. 200.00
14. Charges for special meter reading on
consumer request
Rs. 150.00
If Government of Tripura decides to pay the subsidy for some categories of
consumers for FY 2014-15, the subsidy shall be paid in advance on monthly basis
to TSECL. The Commission directs TSECL to recover full tariff in case the
Government of Tripura does not pay subsidy in advance for two consecutive
months.
The approved retail supply tariff will be in accordance with the Tariff Schedule
given in this Order. The Order shall come into force from November 1st, 2014 and
shall remain valid till March 31st, 2014 or till further order/amendment by the
Commission.
Sd/-
Shri. N. Chakraborty
Chairman
Place : Agartala
Date : November 22nd, 2014
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 205
November 2014
Annexure I: Approved Tariff Schedule for FY 2014-15
Sl. No.
Consumer Category / Slabs Fixed Charge
Energy Charge
(Rs./kWh)
A. Kutir Jyoti Rs. 62.00/Connection/month
B. Domestic
Domestic (rural): 0-50 units Rs. 15/Connection/ month 4.03
Slab 1: upto 50 Units Rs. 25/Connection / month 4.84
Slab 2: 51 - 150 units Rs. 40/Connection / month 5.98
Slab 3: 151 - 300 units Rs. 50/Connection / month 6.16
Slab 4: 301 units onwards Rs. 50/Connection / month 7.20
Three phase (Compulsory above
3 kW): All units
Rs. 50 / kW / month 7.20
C. Commercial
Small Commercial / Pan shop:
0-50 unit
Rs. 25/Connection / month 5.93
Slab 1: upto 150 units Rs. 45/Connection/ month 6.69
Slab 2: 151 units onwards Rs. 60/Connection / month 7.25
Semi Commercial: All units Rs. 50/ kW / month 7.25
Three Phase (Compulsory
above 3 kW): All units
Rs. 50 / kW / month 7.45
Three Phase – Group Consumer:
All units
Rs. 50 / kW / month 7.53
D. Mobile Tower: All units Rs. 125 / kW / month 7.34
E. Irrigation
Upto 5 H.P: All units Rs. 30 / kW / month 4.95
Above 5 H.P. : All units Rs. 60 / kW / month 5.95
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 206
November 2014
Sl. No.
Consumer Category / Slabs Fixed Charge
Energy Charge
(Rs./kWh)
F. Water works: All units Rs. 40 / kW / month 6.65
G. Industrial
Up to 5 HP (E-R/5): All units Rs. 25 / kW / month 5.93
Up to 5 HP (E-U/5): All units Rs. 30 / kW / month 6.36
Above 5 to 20 HP: All units Rs. 45 / kW / month 7.10
Above 20 to 100 HP: All units Rs. 60 / kW / month 7.24
Above 100 HP: All units Rs. 75 / kW / month 7.25
H. Tea, Coffee and Rubber
Gardens: All units
Rs. 75 / kW / Month 7.50
I. Bulk Supply: All units Rs. 75 / kW / Month 7.33
J. Public Lighting
Public Lighting (Panchayat) Rs. 30 / kW / Month 5.55
Public Utility (Nagar Panchayat /
Municipality) Rs. 60 / kW / Month 6.63
K. Special Public Utility
Special Public Utility
(Crematorium) Rs. 45 / kW / Month 5.80
Special Public Utility
(Emergency Water Pumping,
Drainage, Dewatering, etc.)
Rs. 45 / kW / Month 5.80
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 207
November 2014
Annexure II: Tariff Schedule for FY 2014-15 after
considering Government Subsidy
Sl. No.
Consumer Category / Slabs
Approved Tariff for FY 2014-
15
Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
A.
Kutir Jyoti
Rs. 62.00 / Connection / month Rs. 4.00 /
Connection
/ month
Rs. 58.00 /
Connection /
month
B. Domestic
Domestic (rural): 0-50
unit
Rs. 15/Connection/
Month 4.03 0.69 3.34
Slab 1: upto 50 Units Rs. 25 /
Connection / month 4.84 0.67 4.17
Slab 2: 51 - 150 units Rs. 40 /
Connection / month 5.98 0.52 5.46
Slab 3: 151 - 300 units Rs. 50 /
Connection / month 6.16 - 6.16
Slab 4: 301 units
onwards
Rs. 50 /
Connection / month 7.20 - 7.20
Three phase
(Compulsory above 3
kW): All units
Rs. 50 / kW /
month 7.20 0.15 7.05
C. Commercial
Small Commercial /
Pan shop: 0-50 unit
Rs. 25 /
Connection / month 5.93 0.62 5.31
Slab 1: upto 150 units Rs. 45 /
Connection / month 6.69 0.51 6.18
Slab 2: 151 units
onwards
Rs. 60 /
Connection / month 7.25 - 7.25
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 208
November 2014
Sl. No.
Consumer Category / Slabs
Approved Tariff for FY 2014-
15
Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
Semi Commercial: All
units
Rs. 50 / kW /
month 7.25 0.10 7.15
Three Phase
(Compulsory above 3
kW): All units
Rs. 50 / kW /
month 7.45 0.10 7.35
Three Phase – Group
Consumer: All units
Rs. 50 / kW /
month 7.53 0.15 7.38
D. Mobile Tower: All
units
Rs. 125 / kW /
month 7.34 - 7.34
E. Irrigation
Upto 5 H.P: All units
Rs. 30 / kW /
month 4.95 1.40 3.55
Above 5 H.P. : All
units
Rs. 60 / kW /
month 5.95 1.40 4.55
F. Water works: All
units
Rs. 40 / kW /
month 6.65 1.40 5.25
G. Industrial
Up to 5 HP (E-R/5): All
units
Rs. 25 / kW /
month 5.93 0.10 5.83
Up to 5 HP (E-U/5): All
units
Rs. 30 / kW /
month 6.36 0.10 6.26
Above 5 to 20 HP: All
units
Rs. 45 / kW /
month 7.10 - 7.10
Above 20 to 100 HP:
All units
Rs. 60 / kW /
month 7.24 - 7.24
Above 100 HP: All
units
Rs. 75 / kW /
month 7.25 - 7.25
H. Tea, Coffee and Rs. 75 / kW / 7.50 0.30 7.20
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 209
November 2014
Sl. No.
Consumer Category / Slabs
Approved Tariff for FY 2014-
15
Energy Charge after
considering Govt. Subsidy
Fixed Charge
Energy
Charge
(Rs./kWh)
Govt.
Subsidy
(Rs./kWh)
Energy Rate
after Govt.
Subsidy
(Rs./kWh)
Rubber Gardens: All
units
Month
I. Bulk Supply: All
units
Rs. 75 / kW /
Month 7.33 - 7.33
J. Public Lighting
Public Lighting
(Panchayat)
Rs. 30 / kW /
Month 5.55 0.57 4.98
Public Utility (Nagar
Panchayat /
Municipality)
Rs. 60 / kW /
Month 6.63 0.57 6.06
K. Special Public Utility
Special Public Utility
(Crematorium)
Rs. 45 / kW /
Month 5.80 1.10 4.70
Special Public Utility
(Emergency Water
Pumping, Drainage
Dewatering etc.)
Rs. 45 / kW /
Month 5.80 1.10 4.70
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 210
November 2014
Appendix 1: Number of consumers from FY 2012-13
to FY 2014-15(P)
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-
15 (P)
A. Kutir Jyoti 65,354 67,844 72,891
B. Domestic
Domestic (rural): 0-50 units 153,870 166,668 158,647
Slab 1: upto 50 Units 166,405 206,112 203,207
Slab 2: 51 - 150 units 91,792 81,035 110,824
Slab 3: 151 - 300 units 21,749 14,098 25,405
Slab 4: 301 units onwards 5,227 3,545 6,132
Three phase (Compulsory above 3 kW): All units
2,637 2,303 6,511
Total Domestic 441,680 473,761 510,727
C. Commercial
Small Commercial / Pan shop: 0-50 unit 10,239 11,160 11,807
Slab 1: upto 150 units 29,858 32,389 32,253
Slab 2: 151 units onwards 4,255 4,944 5,035
Semi Commercial: All units 776 681 1,926
Three Phase (Compulsory above 3 kW): All units
463 289 284
Three Phase – Group Consumer: All units
245 226 316
Total Commercial 45,836 49,689 51,621
D. Mobile Tower: All units 750 934 1,136
E. Irrigation
Upto 5 H.P: All units 2,921 2,934 2,990
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 211
November 2014
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-
15 (P)
Above 5 H.P. : All units 1,753 1,779 1,907
Total Irrigation 4,674 4,713 4,897
F. Water works: All units 3,748 4,533 5,424
G. Industrial
Up to 5 HP (E-R/5): All units 364 408 416
Up to 5 HP (E-U/5): All units 532 921 558
Above 5 to 20 HP: All units 3,472 3,392 3,873
Above 20 to 100 HP: All units 348 225 384
Above 100 HP: All units 28 65 33
Total Industrial 4,744 5,011 5,264
H. Tea, Coffee and Rubber Gardens: All units
29 37 40
I. Bulk Supply: All units 947 718 718
J. Public Lighting
Public Lighting (Panchayat) 362 245 307
Public Utility (Nagar Panchayat / Municipality)
847 881 944
Total Public Lighting 1,209 1,126 1,251
K. Special Public Utility 79 80 95
Total number of consumers 569,050 608,446 654,063
Note: The actuals of FY 2012-13 and FY 2013-14 are as provided by the Petitioner in the Petition/supporting data. In case of discrepancies/absence of information, the Commission has dervived the data based on its analysis.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 212
November 2014
Appendix 2: Connected load from FY 2012-13 to FY 2014-
15 (P)
(MW)
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-15
(P)
A. Kutir Jyoti 10.00 8.00 9.00
B. Domestic
Domestic (rural): 0-50 units 21.75 23.61 25.79
Slab 1: upto 50 Units 26.74 29.03 32.02
Slab 2: 51 - 150 units 30.57 33.18 36.19
Slab 3: 151 - 300 units 16.38 18.67 20.13
Slab 4: 301 units onwards 8.01 9.56 10.42
Three phase (Compulsory above 3 kW): All units
29.03 34.67 37.38
Total Domestic 132.48 148.73 161.92
C. Commercial
Small Commercial / Pan shop: 0-50 unit 2.23 2.37 2.46
Slab 1: upto 150 units 12.16 12.92 13.47
Slab 2: 151 units onwards 3.92 4.59 4.97
Semi Commercial: All units 3.40 3.61 3.77
Three Phase (Compulsory above 3 kW): All units
4.93 5.24 1.09
Three Phase – Group Consumer: All units
1.03 1.09 1.14
Total Commercial 27.67* 29.83* 26.90
D. Mobile Tower: All units - - 17.03
E. Irrigation
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 213
November 2014
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-15
(P)
Upto 5 H.P: All units 6.52 7.71 9.07
Above 5 H.P. : All units 12.99 15.35 18.05
Total Irrigation 19.51 23.06 27.12
F. Water works: All units 34.27 67.50 104.07
G. Industrial
Up to 5 HP (E-R/5): All units 0.87 0.88 0.93
Up to 5 HP (E-U/5): All units 1.40 1.58 1.70
Above 5 to 20 HP: All units 31.43 35.31 38.03
Above 20 to 100 HP: All units 23.68 25.39 26.72
Above 100 HP: All units 4.58 5.14 5.54
Total Industrial 61.96 68.31 72.92
H. Tea, Coffee and Rubber Gardens: All units
0.56 0.56 0.60
I. Bulk Supply: All units 29.47 87.40 96.14
J. Public Lighting
Public Lighting (Panchayat) 0.68 0.77 0.86
Public Utility (Nagar Panchayat / Municipality)
5.18 5.82 6.54
Total Public Lighting 5.86 6.58 7.40
K. Special Public Utility 0.41 0.43 0.44
Total connected load 322.18 440.40 523.54
Note: (1) *Including Mobile Towers Category
(2) The actuals of FY 2012-13 and FY 2013-14 are as provided by the Petitioner in the Petition/supporting data. In case of discrepancies/absence of information, the Commission has dervived the data based on its analysis.
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 214
November 2014
Appendix 3: Sales from FY 2012-13 to FY 2014-15 (P)
(MU)
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-15
(P)
A. Kutir Jyoti 17.62 18.00 13.56
B. Domestic
Domestic (rural): 0-50 units 57.11 61.14 68.15
Slab 1: upto 50 Units 70.22 75.17 83.79
Slab 2: 51 - 150 units 80.26 85.92 95.78
Slab 3: 151 - 300 units 43.01 46.05 51.33
Slab 4: 301 units onwards 21.02 22.50 25.08
Three phase (Compulsory above 3 kW): All units
76.23 81.61 90.97
Total Domestic 347.86 372.40 415.10
C. Commercial
Small Commercial / Pan shop: 0-50 unit 4.02 2.55 2.74
Slab 1: upto 150 units 26.83 17.04 18.30
Slab 2: 151 units onwards 14.48 9.20 9.88
Semi Commercial: All units 9.54 6.06 6.50
Three Phase (Compulsory above 3 kW): All units
3.19 2.02 2.17
Three Phase – Group Consumer: All units
9.13 5.80 6.23
Total Commercial 67.18* 42.66 45.82
D. Mobile Tower: All units - 22.00 25.00
E. Irrigation
Upto 5 H.P: All units 11.74 9.53 9.53
Above 5 H.P. : All units 24.66 20.02 20.02
Tariff Order for TSECL for FY 2014-15
Tripura Electricity Regulatory Commission Page 215
November 2014
Sl. No. Consumer Category / Slabs FY 2012-13
(A) FY 2013-14
(A) FY 2014-15
(P)
Total Irrigation 36.40 29.55 29.55
F. Water works: All units 62.41 67.50 74.96
G. Industrial
Up to 5 HP (E-R/5): All units 0.53 0.52 0.54
Up to 5 HP (E-U/5): All units 0.86 0.84 0.88
Above 5 to 20 HP: All units 19.27 18.81 19.79
Above 20 to 100 HP: All units 14.52 14.17 14.91
Above 100 HP: All units 2.81 2.74 2.88
Total Industrial 37.99 37.07 39.02
H. Tea, Coffee and Rubber Gardens: All units
0.67 0.69 0.76
I. Bulk Supply: All units 79.18 87.40 102.37
J. Public Lighting
Public Lighting (Panchayat) 3.67 3.80 4.14
Public Utility (Nagar Panchayat / Municipality)
27.86 28.90 31.46
Total Public Lighting 31.52 32.70 35.60
K. Special Public Utility 2.22 2.30 2.69
Total Sales 683.05 712.27 784.42
Note: (1) *Including Mobile Towers Category
(2) The actuals of FY 2012-13 and FY 2013-14 are as provided by the Petitioner in the Petition/supporting data. In case of discrepancies/absence of information, the Commission has dervived the data based on its analysis.