BEFORE THE H ELECTRICITY REGULATORY...

BEFORE

THE HARYANA ELECTRICITY REGULATORY COMMISSION

Filing of the Petition for Annual Performance Review for FY 2016-17 and Annual

Revenue Requirement for FY 2017-18 by Dakshin Haryana Bijli Vitaran Nigam

Limited under HERC (Terms and Conditions for Determination of Tariff for

Distribution & Retail Supply under Multi Year Tariff Framework) Regulations,

2012 and 1st Amendment MYT draft Regulations, 2016 along with the other

guidelines and directives issued by the Hon’ble Commission from time to time

and under Section 45, 46, 47, 61, 62, 64 and 86 of the Electricity Act 2003 read

with the relevant guidelines.

FILED BY,

DAKSHIN HARYANA BIJLI VITRAN NIGAM LIMITED, HISAR

Superintendent Engineer (Regulatory Affairs)

FIRST FLOOR, VIDYUT SADAN,

HISAR - 125005

[Nov-16] Page i

Petition for APR FY 2015-16 and ARR for FY 2016-17 for DHBVNL

BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION,

AT ITS OFFICE 33-36, SECTOR -4 IN PANCHKULA, HARYANA

IN THE MATTER OF: Filing of the Petition for Annual Performance Review (APR) for FY

2016-17, Annual Revenue Requirement (ARR) for FY 2017-18 by

Dakshin Haryana Bijli Vitran Nigam Ltd. under HERC (Terms and

Conditions for determination of tariff for generation, transmission,

wheeling and distribution & retail Supply under Multi Year Tariff

Framework) Regulations, 2012 as amended from time to time and

under Section 45, 46, 47, 61, 62, 64 and 86 of The Electricity Act 2003

read with the relevant guidelines.

AND

IN THE MATTER OF: DAKSHIN HARYANA BIJLI VITRAN NIGAM LIMITED (hereinafter

referred to as "DHBVN”), having its registered office at Vidyut Sadan,

VIdyut Nagar, Hisar, Haryana.

DHBVN respectfully submits as under: -

1. The Petitioner is a State owned Distribution Company and registered under the companies

Act, 1956, formed under corporatisation/ restructuring of erstwhile Haryana State

Electricity Board (HSEB) and is creditworthy for the distribution and retail supply of

electricity (License No. DRS-2 of 2004) in the South Zone of State Haryana.

2. Pursuant to the enactment of the Electricity Act, 2003, every utility is required to submit

its Aggregate Revenue Requirement (ARR) for the control period and Tariff Petitions as

[Nov-16] Page ii


per procedures outlined in section 61, 62 and 64, of Electricity Act 2003, and the HERC

(Terms and conditions for Determination of Tariff for Distribution & Retail Supply under

Multi Year Tariff Framework) Regulations, 2012 as amended from time to time herein

referred as HERC MYT Tariff Regulations 2012.

3. The Multi-year Tariff (MYT) petition for control period FY 2014-15 to FY 2016-17 was filed

on 19.12.2013 by DHBVN and accordingly the Hon’ble Commission had issued the MYT

order against the said petition on 29.05.2014. Furthermore, the control period has been

extended till FY 2017-18 as per the 1st amendment to HERC MYT Tariff Regulations, 2012.

4. The present petition is filed before the Hon’ble Commission for Annual Performance

Review (APR) for FY 2016-17 and Annual Revenue Requirement (ARR and Tariff for FY

2017-18) considering the approved values of Tariff order dated 7th May 2015 and

subsequent HERC tariff order 1st August 2016 .

5. This petition has been prepared in accordance with the provisions of Part VII- Principles

for Determination of Tariff and Norms of Operation for Distribution Business and Part VIII

-Filing Of Aggregate Revenue requirement, as per the HERC (Terms and Conditions for

Determination of Tariff for Generation, Transmission, Wheeling and Distribution & Retail

Supply under Multi Year Tariff Framework) Regulations, 2012 along with Sections 61, 62

of the Electricity Act, 2003.

6. DHBVN along with this petition is submitting the regulatory formats with data &

information to an extent applicable and would make available any further information/

additional data required by the Hon’ble Commission during the course of proceedings.

7. In view of power delegated to Managing Director by Board of Directors in its meeting held

on 20.06.2014 against agenda item no 157.61, the current APR being filed has been

discussed and approved by the Managing Director of DHBVN and Mr. Rajinder Kumar

[Nov-16] Page iii


Sabharwal, SE/RA, DHBVN has been authorized to execute and file the said APR on behalf

of DHBVN.

8. Further, while making the projections the Nigam has considered the issues raised in

review petition filed vide Memo No. CH-10/SE/RA-557 dated 05.11.2016 against the

Impugned Tariff Order dated 01.08.2016 and the projection thus made in the current

petition are subjected to change based on the outcome of the Order against the review

petition.

9. This filing is without prejudice to the review petition filed by the Nigam against tariff order

dated 01.08.2016 and any other matters of DHBVN pending before the Hon’ble

Commission.

10. Further the HERC vide Order dated 7th November, 2016 has stated as below:

i) “Two months time, from the date of this Order, is allowed to the power utilities

i.e. HPGCL, HVPNL, UHBVN and DHBVN to finalize their respective Business Plan,

Capital Investment Plan for the FY 2017-18 and the ARR/Tariff Petition (s) for

the FY 2017-18. Accordingly, for the FY 2017-18, there shall be annual

determination of the ARR/Tariff.

However DHBVN is filing a petition before the Hon’ble Commission while reserving its

right to file any additional submissions and revised petition after the decision on the

Review Petition filed against the Tariff Order dated 1.08.2016 or otherwise till the date

of extended period i.e. 07.01.2017 (two months from 07.11.2016).

[Nov-16] Page iv


Prayers to the Commission:

The petitioner respectfully prays that the Hon’ble Commission may:

a) Take the accompanying current APR filing of DHBVN on record and accept the petition

for filing including requests for truing up of the expenses and revenue for FY 2015-16,

Revised estimates for ARR for FY 2016-17 and projection of ARR gap for FY 2017-18.

b) To file any additional submissions and revised petition after the decision on the review

petition filed against the order dated 1.08.2016 or otherwise till the date of extended

period i.e. 07.01.2017 (two months from 07.11.2016) as already submitted.

c) To continue the current levels of Tariff and FSA to meet the expenses while the gap

will be funded by OFR as proposed under UDAY scheme

d) Treat the current APR filing as complete in view of substantial compliance as also the

specific requests for waivers with justification placed on record.

e) To condone any inadvertent omissions/errors/shortcomings and permit DHBVN to

add/change/modify/alter this filing with revised figures as may be required at a future

date.

f) Pass such Order, as the Hon’ble Commission may deem fit and appropriate keeping in

view the facts and circumstances of the case submitted by the Petitioner.

Hisar, Haryana

Dated: 30-11-2016

Dakshin Haryana Bijli Vitran Nigam Limited

Petitioner

[Nov-16] Page v


Table of Contents

CHAPTER 1. INTRODUCTION ................................................................................................... 8

1.1 PROFILE OF DHBVNL ......................................................................................................................... 8

1.2 CURRENT PETITION ........................................................................................................................... 10

CHAPTER 2. TRUE-UP SUMMARY OF FY 2015-16 ................................................................. 12

2.1 PREAMBLE....................................................................................................................................... 12

2.2 APPROACH OF TRUE-UP PETITION FOR FY 2015-16 .............................................................................. 12

2.3 SUMMARY OF TRUE-UP FOR FY 2015-16 ............................................................................................ 12

CHAPTER 3. PERFORMANCE REVIEW FOR FY 2016-17 AND ANNUAL REVENUE

REQUIREMENT FOR FY 2017-18 ............................................................................................... 14

3.1 PREAMBLE....................................................................................................................................... 14

3.2 ASSESSMENT OF ENERGY SALES FOR FY 2016-17 AND FY 2017-18 ........................................................ 14

3.3 ENERGY AVAILABILITY FOR HARYANA FOR FY 2016-17 AND FY 2017-18 ................................................. 16

3.4 TRANSMISSION LOSSES ...................................................................................................................... 22

3.5 DISTRIBUTION LOSSES ....................................................................................................................... 22

3.6 TRANSMISSION CHARGES ................................................................................................................... 23

3.7 ENERGY BALANCE ............................................................................................................................. 23

3.8 OPERATION & MAINTENANCE EXPENSES .............................................................................................. 25

3.9 COMPUTATION OF INFLATIONARY INDICES ............................................................................................ 27

3.10 EMPLOYEE EXPENSES ...................................................................................................................... 28

3.11 REPAIR & MAINTENANCE EXPENSES .................................................................................................. 29

3.12 ADMINISTRATION & GENERAL EXPENSES ............................................................................................ 30

3.13 SUMMARY OF O&M EXPENSES ........................................................................................................ 31

3.14 CAPITAL EXPENDITURE .................................................................................................................... 31

3.15 CWIP & GFA WORKINGS ................................................................................................................ 35

3.16 RETURN ON EQUITY ........................................................................................................................ 37

3.17 INTEREST & FINANCE CHARGES ......................................................................................................... 38

3.18 DEPRECIATION ............................................................................................................................... 49

3.19 NON-TARIFF INCOME ...................................................................................................................... 50

3.20 TRUE UP OF RE SUBSIDY FOR FY 2015-16 ......................................................................................... 51

3.21 REVENUE ESTIMATION .................................................................................................................... 52

3.22 REVENUE FROM INTER-STATE SALES ................................................................................................... 54

3.23 AGRICULTURE SUBSIDIES ................................................................................................................. 54

3.24 REVENUE FROM FSA ....................................................................................................................... 55

[Nov-16] Page vi


CHAPTER 4. PERFORMANCE REVIEW FOR FY 2016-17 AND ANNUAL REVENUE

REQUIREMENT FOR FY 2017-18 ............................................................................................... 55

CHAPTER 5. RECOVERY OF GAPS ........................................................................................... 58

5.1 RECOVERY OF GAPS .......................................................................................................................... 58

CHAPTER 6. PRAYERS TO THE COMMISSION: ....................................................................... 59

ANNEXURE 1: ANNEXURE OF DIRECTIVES ....................................................................................................... 60

[Nov-16] Page vii


List of Tables

Table 1: Summary of truing up gap for FY 2015-16 .............................................................................. 12

Table 2: Statement of sales for FY 2016-17 and FY 2017-18 ................................................................ 16

Table 3: Power Purchase Details for FY 2016-17 & FY 2017-18 ............................................................ 18

Table 4 Summary of Impact of APTEL Judgement for FY 2016-17 and FY 2017-18 .............................. 22

Table 5: Summary of Transmission Charges for FY 2016-17 and FY 2017-18 ....................................... 23

Table 6: Energy Balance for DHBVN FY 2016-17 and FY 2017-18 ......................................................... 24

Table 7: Bulk Supply tariff for DHBVN ................................................................................................... 24

Table 8: Employee Expenses for FY 2016-17 & FY 2017-18 .................................................................. 29

Table 9: R&M Expenses for FY 2016-17 & FY 2017-18 .......................................................................... 30

Table 10: A&G Expenses for FY 2016-17 and FY 2017-18 ..................................................................... 30

Table 11: Summary of O&M Expenses for FY 2016-17 and FY 2017-18 ............................................... 31

Table 12: Capital Expenditure for FY 2016-17 and FY 2017-18 ............................................................. 33

Table 13: CWIP for FY 2016-17 and FY 2017-18 .................................................................................... 36

Table 14: GFA for FY 2016-17 and FY 2017-18 ...................................................................................... 36

Table 15: Return on Equity for FY 2016-17 & FY 2017-18 ..................................................................... 37

Table 16: Existing Working Capital, Operation Loss and REC/PFC Loans for FY 2016-17 ..................... 41

Table 17: Existing Working Capital, Operation Loss and REC/PFC Loans for FY 2016-17 & FY 2017-18

.............................................................................................................................................................. 42

Table 18: Interest on Consumer Security Deposit for FY 2016-17 and FY 2017-18 ............................... 48

Table 19: Interest & Finance Charges for FY 2016-17 and FY 2017-18 ................................................. 48

Table 20: Depreciation for FY 2017-18 .................................................................................................. 50

Table 21: Non- Tariff Income for FY 2016-17 and FY 2017-18 .............................................................. 51

Table 22: True up of RE subsidy for FY 2015-16 .................................................................................... 52

Table 23: Revenue Estimations for FY 2016-17 ..................................................................................... 53

Table 24: Revenue from Sale of Power for FY 2017-18 ......................................................................... 53

Table 25: Revenue from Inter-state Sale of Power for FY 17 and FY 18 ................................................ 54

Table 26: ARR for FY 2016-17 and FY 2017-18 ...................................................................................... 55

Table 27: Wheeling and Retail ARR for FY 2016-17 and FY 2017-18 .................................................... 57

[Nov-16] Page 8


Chapter 1. Introduction

1.1 Profile of DHBVNL

1.1.1 The Company is a Distribution Licensee within the meaning of Section 2 (17) of

Electricity Act 2003 and pursuant to the Section 14 of the Electricity Act. Further,

Section 42 and 43 of the Electricity Act 2003 prescribes the following duties of the

Distribution Licensee:

To develop and maintain an efficient, co-ordinated and economical distribution

system;

To supply electricity on an application of the consumer in accordance with the

provisions specified in the Electricity Act 2003;

To provide non-discriminatory open access to the consumers;

To establish a forum for redressal of grievances of the consumers;

1.1.2 Since DHBVN has been vested with the function of distributing power by the State

Government of Haryana, the Business Scope of the Company falls within the legal

framework as specified in the Act and can include:

To develop and maintain an efficient, co-ordinated and economical distribution

system;

To Operate the existing distribution infrastructure efficiently & effectively;

Merchant Sale of Power in the event of availability of surplus power after meeting

the requirement of own consumers with whom the capacity is contracted

presently;

Other associated business like providing Training, Research and Development

activities, Technical consultancy services and O&M related services;

Contracts for outsourcing of distribution related activities, joint venture

participation;

[Nov-16] Page 9


1.1.3 DHBVN is responsible for distribution of power in following districts of South Haryana:

Sirsa

Hisar

Bhiwani

Rewari

Gurgaon

Mewat

Palwal

Faridabad

Mahendragarh

Jind

Fatehabad

1.1.4 It is submitted that Jind is now under DHBVN area of operation, w.e.f. 3rd July 2013,

However, the approved MYT by Hon’ble HERC in MYT Order, vide dated 29th May 2014,

Jind Circle was considered under the operational area of UHBVNL as the segregation

of accounts was to be completed post the implementation of scheme.

1.1.5 However the allocation of assets and liabilities from UHBVN to DHBVN is completed

thereafter and same has been available in detail with the annual accounts of Discoms

of FY 2014-15. It is therefore submitted that, JIND circle has been considered as the

part of DHBVNL for the annual estimation of ARR.

1.1.6 The Hon’ble Commission had issued HERC (Terms and Conditions for Determination of

Tariff for Generation, Transmission, Wheeling and Distribution & Retail Supply under

Multi Year Tariff Framework) Regulations, 2012 (herein MYT Regulations) notified on

[Nov-16] Page 10


5th December 2012. As per the MYT Regulations, a Distribution Licensee is to file the

MYT Petition (ARR and Tariff Proposal for the control period) by 30th November of the

year proceeding the first year of the control period.

1.1.7 As per the MYT Regulations 18.1 -

The petition shall contain information regarding salient features of the project including

the capacity, location, site specific features, fuel, beneficiaries, break-up of the capital

cost estimates, financial package, schedule of commissioning, reference price level,

estimated completion cost including foreign exchange components, if any, consent of

beneficiary licensees to whom the electricity is proposed to be sold etc.

1.1.8 DHBVN had filed its MYT Petition on Dec. 19th 2013 for the control period of FY 2014-

15 to 2016-17 for approval of the year wise Annual Revenue Requirement (ARR) , under

MYT Tariff Framework. Further, the Hon’ble Commission issued a common MYT Order

for both Discoms on the same on 29th May 2014.

1.1.9 DHBVN is filing the present petition to perform the annual performance review of FY

2016-17, on the basis of available cost & expenditure of initial half year. In line with

the above, DHBVNL is filing its Annual Performance Review for FY 2016-17 and Annual

Revenue Requirement for FY 2017-18 for consideration of the Hon’ble Commission.

1.2 Current petition

1.2.1 This petition for Annual Performance Review (APR) for FY 2016-17 and Annual Revenue

Requirement for FY 2017-18 is being submitted by “Dakshin Haryana Bijli Vitaran

Nigam Limited” considering half yearly available income & expenditure of DHBVNL for

FY 2016-17 and on the basis of further revised estimates for next six months of FY 2016-

17 and thereafter new projections for FY 2017-18 has been envisaged.

[Nov-16] Page 11


1.2.2 The current petition has been prepared in accordance with the provisions of the

following Acts/ Policies/ Regulations:

a) Electricity Act 2003;

b) National Electricity Policy;

c) National Tariff Policy;

d) HERC (Terms and Conditions for Determination of Tariff for Wheeling and


2012;

e) HERC (Terms and conditions for grant of connectivity and open access for intra-

State transmission and distribution system) Regulations, 2012 and applicable

current amendments;

1.2.3 DHBVN has made genuine efforts for compiling all relevant information relating to this

APR for FY 2016-17 and ARR tariff petition for FY 2017-18, as required by the

regulations issued by the Hon’ble Commission and has also made every effort to ensure

that information provided to the Hon’ble Commission is accurate and free from

material errors. However, there may be certain deficiencies owing to the compilation

of accounts of Petitioner company and hence, DHBVN prays to the Hon’ble

Commission that the information provided be accepted for the current filing and at the

same time DHBVN assures that it is taking appropriate measures to improve its

management information system for improved data collection.

[Nov-16] Page 12


Chapter 2. True-up Summary of FY 2015-16

2.1 Preamble 2.1.1 This section deals with summary of true-up exercise carried out for FY 2015-16, which has

been separately filed by the Petitioner.

2.2 Approach of True-up Petition for FY 2015-16 2.2.1 The Commission in the order dated 7th May 2015 has determined the Aggregate Revenue

Requirements and Wheeling/distribution & Retail supply tariff for wheeling/supply of

electricity by Discom within the state of Haryana for FY 2015-16.

2.2.2 The true-up exercise for FY 2015-16 has been performed on the basis of available audited

annual accounts of DHBVNL for FY 2015-16.

2.3 Summary of True-up for FY 2015-16

2.3.1 The summary of truing-up of FY 2015-16 is hereby tabulated for reference purpose only.

The effect of truing-up has been provided in the APR and ARR tariff petition of DHBVNL.

The difference in approved and actual expenditure as per the summary table below for

DHBVN has been given below:

Table 1: Summary of truing up gap for FY 2015-16

Summary of Actual ARR for FY15-16

Sr. Particulars Approved Actual*

1 Power Purchase Expenses 11,155.44 11,048.63

2 Transmission Charges 1101.76 1,451.77

3 SLDC Charges 49.13

4 Operations and Maintenance Expenses 827.05 1,137.46

4.1 Employee Expense 518.52 637.69

4.2 Administration & General Expense 60.46 72.13

4.3 Repair & Maintenance Expense 98.07 35.64

4.4 Terminal Liability 150.00 392.00

[Nov-16] Page 13


Summary of Actual ARR for FY15-16

Sr. Particulars Approved Actual*

5 Depreciation 202.26 199.89

6 Total Interest & Finance Charges 424.17 1,772.19

7 Return on Equity Capital - 203.80

8 Prior Period Expense -0.83

9 Other Debits 32.49

10 Total Expenditure 13,759.81 15,845.42

11 Less: Non Tariff Income 149.83 224.46

12 Net Aggregate Revenue Requirement 13,609.98 15,620.96

13 Total Revenue 12,337.15

13.1 Revenue from Interstate sales 891.76

13.2 Revenue from Intrastate sales 11,445.39

14 Gap 3,283.81

15 Govt. subsidy 2529.34

16 Net Gap 754.47

*Delayed payment surcharge is not considered in Non-Tariff Income

2.3.2 The Petitioner (DHBVNL) has requested Hon’ble Commission to approve the net revenue

(gap) of Rs. 754.47 Cr. along with the suitable carrying / holding cost for

FY 2015-16 to be recovered through tariffs for FY 2017-18 of Distribution Company.

2.3.3 The petitioners further submits that in the truing up for FY 15-16, the delayed payment

surcharge is not considered in the Non-Tariff income.

[Nov-16] Page 14


Chapter 3. Performance Review for FY 2016-17 and Annual Revenue Requirement for FY

2017-18

3.1 Preamble

3.1.1 This chapter deals with the annual performance review of ARR for FY 2016-17 and ARR

for FY 2017-18 against as approved by the Hon’ble Commission vide MYT order dated 29th

May 2014, HERC Tariff Order dated 7th May, 2015 and HERC tariff order dated 1st August

2016. In order to undertake Annual Performance Review for FY 2016-17 & Annual

Revenue Requirement for FY 2017-18, various assumptions and other practical

approaches have been taken into the consideration. The same has been described in

detail, while projecting each component.

Further the HERC vide Order dated 7th November, 2016 has stated as below:

“Two months time, from the date of this Order, is allowed to the power utilities

i.e. HPGCL, HVPNL, UHBVN and DHBVN to finalize their respective Business Plan,

Capital Investment Plan for the FY 2017-18 and the ARR/Tariff Petition (s) for the

FY 2017-18. Accordingly, for the FY 2017-18, there shall be annual determination

of the ARR/Tariff.”

However the DHBVN is filing a petition before the Commission while reserving its right to

file any additional submissions and revised petition after the decision on the review


period i.e. 07.01.2017 (two months from 07.11.2016).

3.2 Assessment of Energy Sales for FY 2016-17 and FY 2017-18

3.2.1 In order to estimate the respective consumer category wise energy sales of DHBVNL for

the FY 2016-17 and FY 2017-18, the Petitioner has relied upon the CAGR of previous year’s

data for connected load, sales and the resulting consumer category wise consumption per

[Nov-16] Page 15


kW. Hence, after applying the projected load factor/ specific per kW consumption to the

projected consumer category wise connected load, the consumer category wise sales for

the FY 2016-17 have been arrived at. The methodology applied by the petitioner for

estimating the metered sales is as under:-

3.2.2 The category-wise connected load and energy sales for the FY 2010-11, FY 2011-12, FY

2012-13, FY 2013-14, FY 2014-15 & FY 2015-16 were considered.

3.2.3 The category wise connected load for the FY 2016-17 and FY 2017-18 is arrived at by

multiplying full year category wise connected load for the FY 2015-16 with the respective

year CAGR of historical data of connected load.

3.2.4 The category wise energy sales of the FY 2016-17 is calculated by multiplying category

wise connected load above for the FY 2016-17 with consumption per kW calculated for

FY 2016-17 based on the analysed category wise actual consumption per kW pattern for

past 3 years.

3.2.5 The category wise energy sales of the FY 2017-18 is calculated by multiplying category

wise connected load above for the FY 2017-18 with consumption per kW calculated for

FY 2017-18 based on the analysed category wise actual consumption per kW pattern for

past 3 years

3.2.6 Agriculture consumption for the FY 2016-17 and FY 2017-18 is calculated by assuming a

growth rate of 5% in actual sales over the year FY 2015-16 reported by the feeder level

data and as per the methodology adopted by the Hon’ble commission in previous tariff

orders.

[Nov-16] Page 16


Table 2: Statement of sales for FY 2016-17 and FY 2017-18

Projection of Sales for FY 2016-17 & FY 2017-18

Category of Consumers Approved for FY

16-17 (MU) Sales till Sep-16

(MU) RE Sales for

FY 16-17 (MU) RE Sales for

FY 17-18 (MU)

Domestic 4,716 2,572 4,487 4,859

Non Domestic 4,155 1,417 2,781 3,167

HT Industry 5,431 2,304 4,835 4,895

Lift Irrigation 185 73 174 198

LT Industry 900 470 950 1,025

Agriculture Metered 2,672 1,986 5,217

5,478

Agriculture Un – Metered

1,830 829

Bulk Supply 629 394 598 644

Railway Traction 349 61 161 153

DMRC 42

Street Lighting 73 42 72 82

Public Water Works 531 260 510 537

Total (MU) 21,471 10,449 19,777 21,029

3.2.7 DHBVNL request Hon’ble Commission to approve energy sales, as per revised projections

for FY 2016-17 and FY 2017-18 tabulated above.

3.3 Energy Availability for Haryana for FY 2016-17 and FY 2017-18

For FY 2016-17 and FY 2017-18, Month Wise Energy availability at the state periphery in

Mu has been projected based on the Allocated Share to Haryana of Central Generating

Stations, State Generation and Independent Power Producers and other Stations.

The Energy Availability in Haryana is calculated based on the average PLF of FY 2015-16, FY

2014-15 and FY 2013-14, Share capacity of Haryana from Central Generating Station IPP.

The energy availability to DHBVN is calculated by multiplying the total availability with the

ratio of drawal of UHBVN and DHBVN.

[Nov-16] Page 17


The Monthly energy sale is determined by distributing the same in the percentage of month

of consumption of FY 2015-16. The energy sales hereby projected has been grossed up with

the losses approved under UDAY scheme to reach at the normative energy required at the

Discom periphery and then by the intrastate transmission losses to arrive at the normative

energy required at the State Periphery.

Then the Normative energy required at the State is assumed to be met through the

Available Energy from Must Run Plant i.e. plants which cannot be backed down like Hydro

Power Plants, Solar Power Plant and Biomass.

The remaining demand is met through the Thermal Power Plant i.e. HPGCL, IPPs and NTPC

as per the Merit order dispatch based upon the Variable charges as per the actual bills of

FY 2015-16.

The Impact of Interstate losses on the Inter State Generating station has already been taken

while calculating the availability at the state periphery.

The Backing Down of the Unit is assumed to be limited to the backing down capacity and

any surplus created on account of same is assumed to be banked with other states and

consumed during the months of deficit.

The Actual Variable Charges of FY 2015-16 has been escalated at an average rate of 5% per

year to arrive and multiplied with the total estimated energy drawn from various

generators to arrive at the total variable cost of power generation for FY 2016-17, however

for FY 2017-18 the variable cost has been kept at same levels as that of FY 2016-17. The

same has been projected in view of Licensee’s attempt for better power purchase planning

and load forecasting etc.

Similarly, the fixed charges paid to the generators in FY 2015-16 are escalated at an average

rate of 5% to arrive at the fixed charges to be paid for FY 2016-17 and FY 2017-18 in

[Nov-16] Page 18


anticipation of the similar increase in fixed charges as per the CERC tariff order for control

period for FY 2014-19 for the central sector generating stations.

Further, the Hon’ble APTEL in its Judgment dated 7th April, 2016 has allowed certain

generators like Adani Power, GMR Kamalganga, Sasan Power Ltd and CGPL recoveries on

account of force majeure / change in law / date of COD etc. The Licensees has already

submitted the issues in detail vide various submissions namely vide Memo No. Ch-

25/GM/RA/N/F-25/Vol-62, Ch-37/GM/RA/N/F-54/Vol-XI, Memo No. CH-55/SE/RA/N/F-

24/VOL-XI(A) and Memo No.Ch-66/GM/RA/N/F-54/Vol-XI(A) dated 25.05.2016,

12.07.2016 and 16.09.2016 and 24.11.2016 respectively.

It is submitted that out of the above liabilities of Rs. 1534.76 Cr the Licensee has already

made payment of Rs. 368.44 Cr up to 26.10.2016, therefore the same has been included in

the power purchase cost of FY 2016-17. Further, the monthly impact based on the bills on

account of above works out to Rs. 31.80 Cr, accordingly the licensee has worked out the

additional power purchase cost on pro-rata basis for 5 months of FY 2016-17 and full year

for FY 2017-18.

The additional power purchase cost due to the impact of Hon’ble APTEL’s Judgment works

out to Rs. 571.29 Cr and Rs. 590.81 Cr for FY 2016-17 and FY 2017-18 respectively which

has been added in the overall projected power purchase cost.

Table 3: Power Purchase Details for FY 2016-17 & FY 2017-18

Sl.No

Power Plants FY 2016-17 FY 2017-18

Quantum Energy Charge

Fixed Charges

Total Charges


Fixed Charges

Total Charges

1 Anta

44.9

16.4

6.5

22.9

42.8

15.6

6.9

22.5

2 Auriya

8.4

3.6

8.1

11.7

8.4

3.6

8.5

12.1

3 Dadri

31.5

12.6

8.7

21.3

25.1

10.0

9.2

19.2

4 Faridabad Gas

787.4

252.6

135.0

387.6

787.4

252.6

141.7

394.3

[Nov-16] Page 19


Sl.No



Fixed Charges

Total Charges


Fixed Charges

Total Charges

5 Feroz Gandhi Unchahar-1

38.3

11.5

3.4

14.9

38.3

11.5

3.6

15.1


80.1

23.2

7.6

30.8

80.1

23.2

8.0

31.2


41.7

12.0

6.1

18.1

41.7

12.0

6.4

18.4

8 Farraka Super Thermal

34.2

9.5

3.2

12.7

34.2

9.5

3.4

12.9

9 Kahalgaon-1

80.4

20.2

8.9

29.0

80.4

20.2

9.3

29.5

10 Kahalgaon-2

223.9

53.2

31.7

84.9

223.9

53.2

33.3

86.5

11 Koldam

166.6

49.8

26.4

76.2

166.6

49.8

27.7

77.5

12 NCTPS (DADRI-II)

-

-

0.4

0.4

-

-

0.4

0.4

13 Rihand Thermal Power St.-1

228.9

43.4

21.0

64.4

228.9

43.4

22.1

65.5


205.1

36.2

22.3

58.5

205.1

36.2

23.4

59.6


201.7

34.8

37.5

72.3

201.7

34.8

39.4

74.2

16 Singrauli Super Thermal

776.2

115.5

43.3

158.9

776.2

115.5

45.5

161.0

17 TOTAL NTPC LTD (A)

2,949.1

694.6

370.1

1,064.7

2,940.6

691.2

388.6

1,079.8

18 BAIRASUIL

113.7

12.3

14.5

26.8

113.7

12.3

15.2

27.6

19 SALAL

269.1

15.2

50.5

65.7

269.1

15.2

53.0

68.2

20 TANAKPUR

10.7

1.5

3.4

4.9

10.7

1.5

3.6

5.1

21 CHAMERA-I

208.4

19.9

23.4

43.3

208.4

19.9

24.6

44.5

22 URI

84.1

7.3

12.5

19.9

84.1

7.3

13.2

20.5

23 CHAMERA-II

48.9

7.0

8.2

15.2

48.9

7.0

8.6

15.6

24 DHAULIGANGA

22.1

3.2

5.9

9.1

22.1

3.2

6.2

9.4

25 DHULHASTI

69.7

19.6

23.8

43.5

69.7

19.6

25.0

44.7

26 SEWA-II

18.4

4.1

5.1

9.2

18.4

4.1

5.3

9.4

27 CHAMERA III

37.6

8.2

13.7

22.0

37.6

8.2

14.4

22.7

28 PARBATI III

25.0

7.5

6.5

14.0

25.0

7.5

6.8

14.4

29 URI-II

27.6

6.8

11.3

18.1

27.6

6.8

11.9

18.7

[Nov-16] Page 20


Sl.No



Fixed Charges

Total Charges


Fixed Charges

Total Charges

30 TOTAL NHPC LTD (B)

935.5

112.8

178.9

291.8

935.5

112.8

187.9

300.7

31 SJVNL 173.0 26.3 28.0 54.3 173.0 26.3 29.4 55.7

32 SJVNL (RAMPUR) 24.0 4.4 8.6 13.0 24.0 4.4 9.0 13.4

33 THDC 102.5 31.4 36.6 68.0 102.5 31.4 38.4 69.8

34 THDC KOTESHWAR 32.1 6.6 5.9 12.5 32.1 6.6 6.2 12.8

35 RAPS 329.8 108.6 - 108.6 329.8 108.6 - 108.6

36 NAPS 97.7 26.7 - 26.7 97.7 26.7 - 26.7

37 BBMB 1,656.4 79.7 - 79.7 1,656.4 79.7 - 79.7

38 PTC TALA 26.6 5.9 - 5.9 26.6 5.9 - 5.9

39 PTC J&K 171.5 69.7 - 69.7 171.5 69.7 - 69.7

40 Aravali Co. Pvt. Ltd. 992.0 405.9 509.4 915.4 992.0 405.9 534.9 940.8

41 JHAJJAR POWER LTD. 2,261.7 802.6 491.1 1,293.7 2,210.4 784.4 515.6 1,300.0

42 PRAGATI POWER 185.8 49.5 48.0 97.5 185.8 49.5 50.4 99.9

43 Coastal Gujrat Power Ltd. 1,288.3 199.8 140.9 340.6 1,288.3 199.8 147.9 347.7

44 ADANI POWER LTD 5,545.5 1,281.0 626.0 1,907.0 5,545.5 1,281.0 657.3 1,938.3

45 SASAN POWER LIMITED 1,666.6 274.7 28.9 303.7 1,666.6 274.7 30.4 305.1

46 PTC GMR KAMALANGA 1,168.3 119.0 85.3 204.3 1,168.3 119.0 89.6 208.6

47 PTC KARCHAMWANGTOO 424.8 151.2 - 151.2 424.8 151.2 - 151.2

48 PTC Lanco Amarkantak 1,022.5 203.5 34.6 238.1 1,022.5 203.5 36.3 239.8

49 DVC MEJIA 263.1 59.6 66.2 125.9 263.1 59.6 69.5 129.2

50 DVC KODERMA 160.4 37.5 35.1 72.6 160.4 37.5 36.9 74.3

51 PTPS-V (HPGCL) 312.1 120.8 45.5 166.3 309.2 119.7 47.8 167.5

52 PTPS-VI (HPGCL) 310.6 120.4 53.4 173.8 309.2 119.8 56.1 175.9

53 PTPS-VII (HPGCL) 898.2 342.0 89.0 431.0 895.7 341.0 93.5 434.5

54 PTPS-VIII (HPGCL) 898.2 327.7 88.9 416.6 898.2 327.7 93.4 421.1

55 YTPP-I&2 (HPGCL) 1,776.9 590.4 262.6 853.0 1,776.9 590.4 275.7 866.1

56 RGTPS 1&2 (HPGCL) 2,265.5 794.9 476.7 1,271.6 2,265.5 794.9 500.5 1,295.4

57 WYC Kakaroi 170.1 37.1 - 37.1 170.1 37.1 - 37.1

58 HPGCL (FSA) - - - - -

-

-

-

59 SLDC CH. OF HPGCL - - - - -

-

-

-

60 OTHER LONG TERM ( C)

24,224.3

6,276.9

3,160.8

9,437.7

24,166.3

6,256.1

3,318.9

9,575.0

61 P&R GOGRIPUR small hydro 5.4 2.6 - 2.6 5.4 2.6 - 2.6

62 Bhoruka Power Corps. Ltd. Small hydro

16.2 5.4 - 5.4 16.2 5.4 - 5.4

63 HPSEB/MITTAL SMALL HYD. - - - - - - - -

64 Megahalya/ APPC - - - - - - - -

65 SHAHBAD SUGAR MILL 89.8 38.2 - 38.2 89.8 38.2 - 38.2

66 CH. DEVI LAL SUGAR MILL - - - - - - - -

67 Haryana Co. Sugar Mill. - - - - - - - -

68 Hafed Sugar Mill - - - - - - - -

69 Meham Sugar Mill - - - - - - - -

[Nov-16] Page 21


Sl.No



Fixed Charges

Total Charges


Fixed Charges

Total Charges

70 Puri Oil Mill small hydro 7.6 3.4 - 3.4 7.6 3.4 - 3.4

71 SUGAR MILL AND SMALL HYDRO (D)

118.9

49.5

- 49.5

118.9

49.5

-

49.5

72 SDS SOLAR PVT LTD. DH 11.8 7.0 - 7.0 11.8 7.0 - 7.0

73 C&S Electrical DH - - - - - - - -

74 CHANDRALEELA SOLAR DH - - - - - - - -

75 SUKHBIR SOLAR DH - - - - - - - -

76 ZAMIL SOLAR DH - - - - - - - -

77 SIWANA SOLAR POWER DH - - - - - - - -

78 H.R. MINERAL SOLAR UH - - - - - - - -

79 TAYAL & CO SOLAR UH - - - - - - - -

80 VKG SOLAR UH - - - - - - - -

81 Solar Energy Corporation of India Ltd.

74.0 42.7 - 42.7 74.0 42.7 - 42.7

82 SOLAR POWER (E) 85.8 49.8 - 49.8 85.8 49.8 - 49.8

83 STAR WIRE INDIA 24.3 17.5 - 17.5 24.3 17.5 - 17.5

84 GEMCO ENERGY LTD. 19.6 14.2 - 14.2 19.6 14.2 - 14.2

85 AB GRAIN SPIRIT PVT LTD. 12.3 9.9 - 9.9 12.3 9.9 - 9.9

85 SRI JYOTI 23.3 18.6 - 18.6 23.3 18.6 - 18.6

87 BIOMASS POWER (F) 79.5 60.1 - 60.1 79.5 60.1 - 60.1

88 Total Long term (A+B+C+D+E+F)

28,393.3

7,243.8

3,709.8

10,953.6

28,326.6

7,219.6

3,895.3

11,114.9

89 New Power Plants (FY 2016-17)

487.5

200.2

67.1

267.3

978.6

402.1

140.9

543.0

90 Bio-Mass based Generation Projects

8.6 6.9 - 6.9 17.2 13.8 - 13.8

91 Bagasse Nariangarh Sugar mill

30.6 24.6 - 24.6 61.3 49.3 - 49.3

92 Budhil HP (IPP) through PTC (H.P.) (Case under Dispute)

- - - - - - - -

93 Tehri PSP (Uttranachal)-THDC

129.2 39.6 21.4 60.9 259.0 79.4 44.8 124.2

94 Kishanganga (J&K)- NHPC 24.5 10.1 4.1 14.1 49.2 20.2 8.5 28.7

95 Kotli Bhel (All 3 Stages) (Uttranachal)-NHPC

74.9 30.7 12.4 43.1 150.2 61.6 26.0 87.6

96 Parbati II, HEP (H.P.)-NHPC 58.1 23.8 9.6 33.5 116.6 47.8 20.2 68.0

97 Siang Middle HEP (Arunachal Pradesh), Reliance Energy Ltd

22.0 9.0 3.6 12.6 44.0 18.1 7.6 25.7

98 Kameng HEP (Arunachal Pradesh), NEEPCO

16.8 6.9 2.8 9.7 33.7 13.8 5.8 19.6

99 Tipaimukh (IPP) (Manipur), Hydro

51.7 21.2 8.5 29.7 103.6 42.5 17.9 60.4

[Nov-16] Page 22


Sl.No



Fixed Charges

Total Charges


Fixed Charges

Total Charges

100 Solar Power Projects at wasteland of HPGCL

4.6 2.7 - 2.7 10.1 5.9 - 5.9

101 Solar PV (Through NIT Route) 10.6 6.1 - 6.1 21.3 12.3 - 12.3

102 Unchahar IV (NTPC) 56.0 18.7 4.7 23.4 112.3 37.4 10.0 47.4

105 New Plants (FY 2017-18)

4.6

2.7 -

2.7

400.1

104.8

56.6

161.4

106 Subansari, ER NHPC (Arunachal Pr.), Hydro

55.5

9.1

10.0

19.1

107 Solar Power Projects at wasteland of HPGCL

4.6

2.7

-

2.7

10.1

5.9

-

5.9

108 Teesta III, Sikkim (IPP) , Hydro 258.3 44.1 46.6 90.7

109 Solar PV Throu NIT 76.1 45.7 - 45.7

Total 28,885.4 7,446.7 3,776.9 11,223.6 29,705.3 7,726.5 4,092.9 11,819.3

3.3.1 The Nigam prays that in case of any variance in the actual generation cost and projected

generation cost of new power generating plants, the Nigam should be allowed to recover

the additional cost at through appropriate mechanism.

Table 4 Summary of Impact of APTEL Judgement for FY 2016-17 and FY 2017-18

Output Units FY 2016-17 FY 2017-18

Power Purchase Cost Crs 11,220.91 11,818.81

Revenue from Inter State SoP/(Purchase) Crs 613.58 711.76

Net Cost Crs 10,607.34 11,107.05

Impact of APTEL Judgements Crs 571.29 590.81

3.4 Transmission losses

3.4.1 For the FY 2016-17 and FY 2017-18 the inter-state transmission losses and intra-state

transmission losses have been considered as 3.82% and 2.46% respectively.

3.5 Distribution losses

3.5.1 For FY 2016-17 and 2017-18, the distribution losses of DHBVN have been projected as

21.70% and 17.94% respectively in line with the target of UDAY scheme, notified by the

Government of Haryana.

[Nov-16] Page 23


3.6 Transmission Charges

3.6.1 For FY 2016-17 inter-state transmission charges and Intra state transmission charges have

been projected on the basis of the actual details available from HPPC for FY 2015-16.

3.6.2 It is submitted that the transmission charges has been divided between both the Discoms

based on the actual power drawl ratio of individual Discoms. The actual interstate and

intrastate transmission charges for FY 2015-16 are projected at rate of 3.32% for

estimation and projection of transmission charges for FY 2016-17 and FY 2017-18. The

detailed transmission charges for Discoms for the period of FY 2016-17 and FY 2017-18

has been tabulated below:

Table 5: Summary of Transmission Charges for FY 2016-17 and FY 2017-18

Particulars DHBVN

Summary FY 2016-17 FY 2017-18

Inter State (Rs. Cr.) 856.40 899.22

Intra State (Rs. Cr.) 667.95 701.34

Total (Rs. Cr.) 1524.35 1600.37

3.6.3 The Nigam prays that in case of any variance in the actual transmission cost and projected

transmission cost, the Nigam should be allowed to recover the additional cost at through

appropriate mechanism.

3.7 Energy Balance

3.7.1 DHBVN has computed the energy balance based on the availability of power based on the

drawl ratio, sales forecast and projected transmission and distribution losses for FY 2016-

17 and 2017-18.

[Nov-16] Page 24


3.7.2 The petitioner has summarised the working of energy balance for DHBVN as an individual

which are tabulated below:

Table 6: Energy Balance for DHBVN FY 2016-17 and FY 2017-18

Energy Balance Units FY 2016-17 FY 2017-18

Power Purchase at State Periphery Mus 28,880.77 29,704.43

Energy Sales to the Consumers Mus 19,596.00 20,839.00

T&D loss %age 21.70% 17.94%

Energy Sales at Discom Periphery Mus 25,025.85 25,394.65

Intra- State Transmission Loss %age 2.46% 2.46%

Energy Sales at State Periphery Mus 25,657.01 26,035.11

Deficit met through Banking Mus 382.52 313.53

Surplus Mus 2,975.64 3,420.68

3.7.3 The Nigam has assumed that the surplus power available will be sold entirely as ‘inter-

state sales’ throughout the FY 2016-17 and FY 2017-18 at 80% of average variable power

purchase cost.

3.7.4 DHBVN request the Hon’ble Commission to approve the above submission for FY 2016-

17 and FY 2017-18. The Petitioner also submits the bulk supply tariff computed for

DHBVNL as given below:

Table 7: Bulk Supply tariff for DHBVN

Bulk Supply Tariff Units FY 2016-17 FY 2017-18

Net energy available at state boundary for use in DHBVN Mus 28,880.77 29,704.43

Intra-state transmission losses % 2.46% 2.46%

Intra-state transmission losses Mus 710.47 730.73

Energy available for sale to distribution licensee at distribution periphery

Mus 28,170.31 28,973.70

Power purchase cost Rs Cr 10,607.34 11,107.05

Inter-state transmission charges Rs Cr 856.40 899.22

[Nov-16] Page 25


Bulk Supply Tariff Units FY 2016-17 FY 2017-18

Intra-state transmission charges Rs Cr 667.95 701.34

Total bulk purchase and transmission charges Rs Cr 12,131.69 12,707.62

Power purchase per unit Rs/Kwh 3.77 3.83

Inter-state transmission charges Rs/Kwh 0.30 0.31

Intra-state transmission charges Rs/Kwh 0.24 0.24

Average BST for DHBVN Rs/Kwh 4.31 4.39

3.8 Operation & Maintenance Expenses

3.8.1 The operation and maintenance expenditure of DHBVNL comprises of Employee

Expenses, Repair & Maintenance expenses and Administration & General expenses. The

O&M expenses, as per the MYT regulations, 2012 are considered as controllable Factor

with the exception of terminal benefits. The cost of terminal benefits has been considered

as uncontrollable factor.

3.8.2 The HERC MYT Regulations, 2012 as amended from time to time have clearly set out the

methodology to calculate the O&M expenses for the Distribution and Retail supply

business, the same is reproduced below:

The actual audited O & M expenses for the financial year preceding the base year, subject

to prudence check, shall be escalated at the escalation factor of 4% to arrive at the O & M

expenses for the base year of the control period. The O&M expenses for the nth year of

the control period shall be approved based on the formula given below.

O&Mn = (R&Mn + EMPn + A&Gn)* (1-Xn) + Terminal Liabilities

Where,

R&Mn – Repair and Maintenance Costs of the Distribution Licensee(s) for

the nth year;

EMPn – Employee Costs of the Distribution Licensee(s) for the nth year

excluding terminal liabilities;

A&Gn – Administrative and General Costs of the Distribution Licensee(s)

for the nth year;

[Nov-16] Page 26


The above components shall be computed in the following manner.

(a) R&Mn = K * GFA * INDXn / INDXn-1

Where,

‘K’ is a constant (expressed in %) governing the relationship between O&M

costs and Gross Fixed Assets (GFA) for the nth year. The value of K will be

1.65% for DHBVN and UHBVN respectively for the entire control period;

‘GFA’ is the average value of the gross fixed asset of the nth year.

‘INDXn’ means the inflation factor for the nth year as defined herein after.

(b) EMPn (excluding terminal liabilities) + A&Gn = (EMPn-1+A&Gn1)*(INDXn/ INDXn-1)

Where,

INDXn – Inflation Factor to be used for indexing the Employee Cost and

A&G cost. This will be a combination of the Consumer Price Index (CPI) and

the Wholesale Price Index (WPI) for immediately preceding year and shall

be calculated as under:

INDXn = 0.55*CPIn +0.45*WPIn.

Note 1: For the purpose of estimation, the same INDXn value shall be used for all

years of the control period. However, the Commission shall consider the actual

values of the INDXn at the end of each year during the annual performance review

exercise and true-up the employee cost and A&G expenses on account of this

variation.

Note 2: Any variation in employee cost and A&G cost on account of reasons beyond

variation in INDXn shall be subject to the incentive and penalty framework

specified in regulation 12.

[Nov-16] Page 27


Note 3: As and when any material price index specific to power sector or a more relevant

Index becomes available, the same shall replace the Index used for working out R&M cost.

Note 4: Terminal liabilities shall be approved as per actual expenditure incurred by

the distribution licensee or established through actuarial valuation for the ensuing

year.

Note 5: O&M expenses made on account of extraordinary situations (if any) shall

be submitted to Commission for its approval. Such expenses shall be filed

separately and will not be subjected to incentive and penalty framework. The

approved amount by the Commission shall be trued up in the annual performance

review.

Note 6: Changes in the pay scales of employees necessitated on account of pay

revision by Pay Commission or by the State Government orders shall be considered

by the Commission for true-up during the annual performance review.

(c) Xn is an efficiency factor for nth year

The Value of Xn will be determined by the Commission in the MYT order for the

control period.

3.9 Computation of Inflationary Indices

The computation of applicable Inflationary Indices for the projection of O&M expenses

and its sub-heads are as under:

Table 9: Inflation factor for WPI & CPI

WPI Inflation Month/Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average Increase

FY 2016-17 178 180 183 184 183 183 182 2.92%

FY 2015-16 176 178 179 178 177 177 177 178 177 175 174 175 177 -2.49%

FY 2014-15 181 182 183 185 186 185 184 181 179 177 176 176 181 2.03%

FY 2013-14 171 171 173 175 179 181 181 182 180 179 180 180 178 5.97%

CPI Inflation Month/Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average Increase

FY 2016-17 271 275 277 280 278 277 276 4.28%

[Nov-16] Page 28


Month/Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Average Increase

FY 2015-16 256 258 261 263 264 266 269 270 269 269 267 268 265 5.65%

FY 2014-15 242 244 246 252 253 253 253 253 253 254 253 254 251 6.29%

FY 2013-14 226 228 231 235 237 238 241 243 239 237 238 239 236 9.68%

Period WPI CPI Total

Weightage 0.45 0.55 1.00

Avg Indexation for FY16-17 182 276

Avg Indexation n-1 (Index * Wt.) 82 152 233.81

Avg Indexation for FY15-16 177 265

Avg Indexation n (Index * Wt.) 80 146 225.25

Combined Inflation (Indxn/Indxn-1) 3.80%

DHBVNL submits herewith that as per the calculations tabulated above, the applicable

combined inflation indices, after taken considerations of weightage average ratios of WPI &

CPI of 45:55 of FY 2015-16 and FY 2016-17 has been computed as 3.80 %, and the same has

been put into the calculations of O&M Expenses , discussed in consecutive paras of this

submission.

3.10 Employee Expenses

3.10.1 The employee expenses primarily include costs towards salaries, dearness allowances,

bonus, staff welfare and medical benefits, leave travel and earned leave encashment, and

the terminal benefits in the form of pension, gratuity etc.

3.10.2 The Inflation Index of 3.80% as indicated in above table has been considered over

FY 2015-16 to arrive at employee cost for FY 2016-17. The recommendations of the 7th

Pay Commission are being implemented in DHBVN and therefore the Employee cost has

been projected for FY 2016-17 and FY 2017-18 incorporating the impact of the pay

revision for regular and contractual employees.

3.10.3 Petitioner has projected the amount paid for terminal benefits, as

Rs.400 Cr. for FY 2016-17 and Rs 385 Crores for FY 2017-18. The petitioner has made best

[Nov-16] Page 29


effort to incorporate the expected impact of pay revision in employee cost, however, any

variation on account of pay revision may be allowed to pass through at the time of truing

up.

3.10.4 The capitalization of the employee cost for FY 2016-17 and FY 2017-18 has been

considered as per the actual capitalization ratio of FY 2015-16.

Table 8: Employee Expenses for FY 2016-17 & FY 2017-18

(Rs. Cr.)

Particulars Actual

FY 2015-16 Approved for

FY 2016-17 RE for FY 2016-17

Projection for FY 2017-18

Employee cost excluding terminal benefits as per annual accounts of FY 2015-16

645.77 - - -

Estimated Employee cost (excluding terminal benefits)

- 629.03 786.03 815.88

Terminal benefits 392.00 335.38 400.00 385.00

3.10.5 DHBVN request the Hon’ble Commission to approve total employee cost for FY 2016-17

and FY 2017-18 as per the above tabulated computation.

3.11 Repair & Maintenance Expenses

3.11.1 The petitioner has projected R&M expenses for the FY 2016-17 and FY 2017-18, as per

the formula defined in HERC MYT Regulations, 2012 and same has been quoted again as

below:

(a) R&Mn = K * GFA * INDXn / INDXn-1

Where,

[Nov-16] Page 30


‘K’ is a constant (expressed in %) governing the relationship between O&M

costs and Gross Fixed Assets (GFA) for the nth year. The value of K will be

1.65% for DHBVN and UHBVN respectively for the entire control period;

‘GFA’ is the average value of the gross fixed asset of the nth year.

‘INDXn’ means the inflation factor for the nth year as defined herein after.

3.11.2 The petitioner has projected R&M expenses for the FY 2016-17, on the actual average

Gross Fixed Assets of DHBVNL for FY 2015-16 escalated with the inflation factor computed

as per the methodology specifies by HERC MYT Tariff Regulations, 2012 as tabulated

below:

Table 9: R&M Expenses for FY 2016-17 & FY 2017-18 (Rs. Cr.)

Particulars Approved for FY

2016-17 RE for FY 2016-17


Estimated R&M expenses 132.77 109.99 114.16

R&M Expense has been projected @ 3.80% inflation factor for FY 2015-16 and as per MYT Regulations 2012, the K factor being considered 1.65% at average GFA

3.11.3 DHBVN request the Hon’ble Commission to approve total R&M expenses for FY 2016-17

and FY 2017-18 as per above submission.

3.12 Administration & General Expenses

3.12.1 Administration and General expenses mainly comprise costs towards rent charges,

telephone and other communication expenses, professional charges, conveyance and

travelling allowances and other debits.

3.12.2 As per HERC MYT Regulations, 2012, the Inflation factor of 3.80% has been considered

over FY 2015-16 to arrive at A&G cost for FY 2016-17 and so on. The computation of A&G

cost considering actual expenses of FY 2015-16, works out to as below:

Table 10: A&G Expenses for FY 2016-17 and FY 2017-18

[Nov-16] Page 31


(Rs. Cr.)

Particulars Actual Approved for

FY 2016-17 RE for FY 2016-17


A&G Expenses as per annual accounts of FY 15-16

72.13

Estimated A&G expenses 73.86 74.87 77.72

A&G Expense has been projected @ 3.80% inflation factor for FY 2016-17 (as per MYT Regulations, 2012)

3.12.3 DHBVN prays to the Hon’ble Commission to approve total A&G expenses for FY 2016-17

and FY 2017-18 as per above submission.

3.13 Summary of O&M Expenses

3.13.1 The summary of projected O&M expenses for FY 2016-17 is tabulated below for

reference:

Table 11: Summary of O&M Expenses for FY 2016-17 and FY 2017-18

Rs. Cr

Sr. Particulars Approved for

FY 2016-17 RE for FY 2016-17


1 Employee Expense 629.03 786.03 815.88

2 Administration & General Expense 73.86 74.87 77.72

3 Repair & Maintenance Expense 132.77 109.99 114.16

4 Terminal Liability 335.38 400.00 385.00 Total 1171.04 1370.88 1392.76

3.13.2 DHBVN prays the Hon’ble Commission to approve total O&M expenses for FY 2016-17

and FY 2017-18 as tabulated above.

3.14 Capital Expenditure

3.14.1 The Hon’ble Commission has approved a Capex Plan of Rs. 1200 Cr. for

FY 2016-17. However, based on the available half yearly details of actual capital

expenditure done by DHBVN and realistic estimate for the second half of FY 2016-17, it is

[Nov-16] Page 32


estimated to undertake capital expenditure of Rs.825 Cr. for FY 2016-17 and Rs.1200 Cr.

for FY 2017-18.

3.14.2 The detailed expected capital expenditure for FY 2016-17 and FY 2017-18 has been given

as below:

[Nov-16] Page 33


Table 12: Capital Expenditure for FY 2016-17 and FY 2017-18

Name of work Actual for FY 15-16

Revised Estimate

for FY 16-17


1 AT&C loss reduction plan

a Procurement of single phase meters for replacement of defective meters and release of new connections.

25.06 45.47 43.47

b Procurement of three phase meters for replacement of defective meters and release of new connections.

4.82 20.00 21.00

c LT Connectivity of already executed HVDS works. 3.23 10.39 4.52

d Power Factor Improvement (Providing automatic power factor correctors)

0 15.00 8.00

2 Load Growth schemes

a Creation of new 33 kV sub-stations

105.4 164.00 130.00

b Augmentation of existing 33 kV sub-stations

c Erection of new 33 kV lines

d Erection of new 11 kV lines

e Augmentation of existing 33 kV lines

f Bifurcation of 11 kV feeders (Work of bifurcation of feeders, augmentation of ACSR) and segregation of Rural Urban load

52.49 27.73 131.49

g Material required for release of Non-AP connections & replacement of old assets

198.75 160.00 145.20

h Release of Tube well connection on turnkey basis and segregation of AP load from Rural Urban feeders.

72.95 100.00 100.00

I Procurement of power transformers and allied equipment such as 33 kV CTs, 33 kV PTs, 33 kV and 11 kV VCBs, 33 kV Control and Relay Panels etc.

16.07 10.03 25.00

J Release of BPL connections under RGGVY schemes 0 4.00 12.00

k Mahatma Gandhi Gramin Basti Yojna 3.29

3 R-APDRP schemes 0

a Implementation of R-APDRP (Part-A) including SCADA 15.23 60.00 10.00

b Implementation of SCADA under R-APDRP (Part-B) in Faridabad town

0 0.00 0.00

c Relocation of energy meters of DS & NDS consumers outside their premises in Meter Pillar boxes.

36.11

d Civil Works 4.61

4 System Strengthening Works under IBRD loan and IBRD equity

0 0.00

a Under IBRD Loan 35.34 64.00 0.00

b Under IBRD Equity 8.4 16.00 0.00

5 Other works

d Revamping of existing Meter Testing labs. at Dadri, Sirsa, Hisar, Faridabad & Gurgaon

0 1.00 1.77

[Nov-16] Page 34



Revised Estimate

for FY 16-17


e Maintenance free earthing using 'Ground Enhancing Material' for Distribution Transformers, Meter Pillar Boxes and H-pole etc.

0.19 5.35 3.31

f Installation of meters on 33 kV Incomers at sub-stations for energy auditing.

0 3.05 4.00

g Providing RF Meters. 0 - 0.00

h AMI on large NDS & LT consumers having load about 10 kW (IBRD funded work).

0 0.00 0.00

i Other works for system improvement - Procurement of IT Equipment & Softwares

6.21 6.50 10.00

j Smart City Gurgaon 0 0.00 200.00

k Setting up of a new testing lab for materials i.e. cable, conductors, transformer oil, distribution transformers etc. at Hisar.

2.07 7.64

l Strengthening of 11 kv & LT Network of bhiwani & jind Town under DHBVN ( Total project cost Rs 75 Cr. To be funded from world bank)

0.00 0.00

m Relocation of energy meters of DS & NDS consumers outside their premises in Meter Pillar boxes.

15.52 8.55

n Civil Works 12.00 20.10

o

Shifing of HT line (33 kv), passing over authorized/un-authorized colonies under jurisdiction of DHBVN. Note:-Hon’ble Chief Minister has made an announcement on the floor of Haryana Vidhan Sabha that all dangerous wires of 33 KV and above levels passing over the various colonies shall be removed. Accordingly, Worthy ACS/Power, Govt. of Haryana, Power Deptt. directed to prepare the detailed scheme in this regar. Also, Worthy ACS/Power, Govt. of Haryana, Power Deptt. has desired that it may be made part of the CAPEX Plan and approval of HERC be obtained.

16.50 16.50

p Improvement works under loss reduction plan, replacement of iron pole and providing of PAT

33.66

q Mhara gaon jagmag gaon scheme 73.79 Total 588.15 758.61 1010.00

B) CAPEX under UDAY (Ujjwal DISCOM Assurance Yojana)

a

Compulsory Feeder and Distribution Transformer metering Feeder meters have been provided on 100% feeders. AMR is already implemented on 1078 feeders. AMR on 4535 Number feeders is to be provided

0.00 2.00

b

DT meters with AMR have been provided on DTs in areas under RAPDRP Part - A for 17535 meters. DT Meters for left out urban areas is to be provided approx. 2000 DTs

0.00 11.00

[Nov-16] Page 35



Revised Estimate

for FY 16-17


c Boundary meters for Villages in Rural Areas (3648 number of villages i.e. 7296 meters)

10 38.00

d DT Meters for rural areas is to be provided for reduction of AT&C losses to 30%

0.00 20.00

e

Engagement of IT firm for Roll out of R-APDRP Application to Non R-APDRP Areas, Procurement and installation of IT hardware at end locations of Sub-Divisions, Providing MPLS connectivity at end location

0.00 30.00

f Consumer indexing and GIS mapping of losses

g # Upgrade or change of transformers / meters etc.(The activities under this scheme have already been covered under Sr No 1a, 1 b, 2g & 3a)

h Replacement of bare conductor with LT- AB cable in theft prone areas

40.76 44.00

i

Replacement of defective meters and Relocation of energy meters of DS & NDS consumers outside their premises in MCB (Procurement of 1X1 & 4X1 MCBs for 1 Ph Meters, 1X1 MCBs for 3Ph Meters, 2cx10 mm2 and 4cx16 mm2 LT PVC armoured/ un-armoured cables and meters).

15.63 30.00

j

Smart metering of consumers consuming above 200 units AMI Project for smart meters already under implementation in Gurgaon and Faridabad City for about 100000 consumers and is expected to be completed by December 2017 (under World Bank Project). Further Roll out will be based on the results. Expected Cost for the project is around Rs 105 Crores)

0 15.00

Total 0.00 66.39 190.00

# - Cost for the Upgradation or change of transformers and meters already taken under CAPEX planned by DHBVN

Grand Total 588.15 825.00 1200.00

3.14.3 The petitioner requests Hon’ble Commission to approve the projected capital expenditure for FY 2016-17

and FY 2017-18, as tabulated above.

3.15 CWIP & GFA workings

3.15.1 Capital Work in Progress for the control period has been projected on the basis of

estimated capital expenditure and the capitalization schedule assuming 70% transfer of

total Capex (including the CWIP carry forwarded from the previous year and capex added

[Nov-16] Page 36


during the year) to fixed assets and 30% transfer of total Capex to capital works in

progress (CWIP) for each year of operation.

3.15.2 While estimating CWIP, it is assumed that 70% of the opening balance of CWIP and fresh

capital investment shall be capitalized during each year of operation.

3.15.3 Based on the estimated capital expenditure and capitalization schedule, the gross fixed

assets (GFA) are estimated for each year of the Control Period. The category wise

additions have been estimated on the basis of the category wise additions made during

the previous year.

3.15.4 The CWIP & GFA of DHBVN for FY 2016-17 and FY 2017-18 is shown in the table below:

Table 13: CWIP for FY 2016-17 and FY 2017-18

Sr. No Particulars RE for FY 16-17 Projection for FY 17-18 CWIP (Rs. Cr.) (Rs. Cr.)

1 Opening CWIP 989.61 659.38

2 Capex During the year 825.00 1,200.00

4 Less: Transferred to GFA 1,270.23 1,301.57

3 IDC during the year 115.00 115.00

5 Closing CWIP 659.38 672.81

Table 14: GFA for FY 2016-17 and FY 2017-18

Sr. No Particulars RE for FY 16-17 Projection for FY 17-18 Gross Fixed Assets (GFA) (Rs. Cr.) (Rs. Cr.)

1 Opening GFA 6,610.84 7,881.07

2 Add: Transferred from CWIP 1,270.23 1,301.57

3 Total GFA 7,881.07 9,182.64

4 Less: Retirement/Disposal of Assets - -

5 Closing GFA 7,881.07 9,182.64

3.15.5 The petitioner requests Hon’ble Commission to approve the estimated CWIP and GFA

figures for FY 2016-17 and FY 2017-18, as tabulated above.

[Nov-16] Page 37


3.16 Return on Equity

3.16.1 As per Regulation 20.1 of HERC (Terms and Conditions for Determination of Tariff for

Generation, Transmission, Wheeling and Distribution & Retail Supply under Multi Year

Tariff Framework) Regulations, 2012; the rate of return on equity shall be decided on the

basis of overall performance subject to a ceiling of 14% provided that the ROE shall not

be less than the net amount of incentive and penalty.

3.16.2 The computation of return on equity for FY 2016-17 and FY 2017-18 is tabulated below:

Table 15: Return on Equity for FY 2016-17 & FY 2017-18

Rs. Cr.

Particulars Approved Estimated

(FY 2016-17) Projected

(FY 2017-18)

Opening Equity 1439.12 1,472.36 1,611.58

addition 33.24 139.22 240

Closing Equity 1472.36 1,611.58 1,851.58

Average 1455.74 1,541.97 1,731.58

Rate of RoE 14% 14% 14%

Total RoE 203.80 215.88 242.42

3.16.3 DHBVN in its APR and ARR Tariff petition submits that RoE is the vital source of funding a

portion of Capital Expenditure planned by the Utility in order to improve the system and

to achieve further loss reduction. Disallowing RoE on the context of financial performance

deprives the Discom of an indispensable source of internal accrual which is more

important in view of the financially constrained position that makes it very difficult for it

to borrow funds from the market to fund basic capital expenditure.

3.16.4 The petitioner requests Hon’ble Commission to approve the computation of return on

equity for FY 2016-17 and FY 2017-18, as tabulated above.

[Nov-16] Page 38


3.17 Interest & Finance Charges

3.17.1 As per Regulation 21 of HERC (Terms and Conditions for Determination of Tariff for

Generation, Transmission, Wheeling and Distribution & Retail Supply under HERC MYT

Regulations, 2012 as amended from time to time; Interest on Loan Capital for existing

loans shall be computed loan-wise and for new loans it shall be equal to the base rate of

SBI as applicable on 1st April of the relevant financial year. The relevant regulations are

provided here for ease of reference:

“ ..21.1 Existing Loans

(i) Interest on loan capital shall be computed loan-wise for existing loans

arrived in a manner specified in Regulation 19 and shall be as per the

rates approved by the Commission.

(ii) The loan outstanding as on 1stApril of each financial year shall be

worked out as the gross loan in accordance with regulation 19 by

deducting the cumulative repayment as admitted by the Commission

up to 31st March of previous financial year from the gross normative

loan;

(iii) The rate of interest shall be the weighted average rate of interest on

institutional loans calculated on the basis of the actual loan portfolio

at the beginning of each year applicable to the project. In case the

weighted average rate is not available, the interest rate approved by

the Commission in its earlier tariff order shall be allowed.

Provided that if there is no actual loan for a particular year but normative loan

is still outstanding, the last available weighted average rate of interest shall be

considered;

Provided further that if the generating plant/project does not have actual loan,

then the weighted average rate of interest of the generating company/licensee

as a whole shall be considered

(iv) The interest on loan shall be calculated on the normative average loan

of the year by applying the weighted average rate of interest;

[Nov-16] Page 39


(v) The generating company and the licensee shall from time to time

review their capital structure i.e. debt and equity and make every effort

to restructure the loan portfolio as long as it results in net savings on

interest. The costs associated with such re-financing shall be borne by

the beneficiaries and the net savings (after deducting the cost of re-

financing) shall be subjected to incentive / penalty framework as

mentioned in the regulation 12 which shall be dealt with at the time of

mid-year performance review/true-up.

(vi) The changes to the loan terms and conditions shall be reflected from the

date of such re- financing and benefit passed on to the beneficiaries;

(vii) In case of any dispute relating to re-financing of loan, any of the parties

may approach the Commission with proper application along with all

the relevant details. During the pendency of any dispute, the

beneficiaries shall not withhold any payment on account of orders

issued by the Commission.

(viii) In case any moratorium period on repayment of loan is availed of by

the generating company or the licensee, depreciation provided for in

the tariff during the years of moratorium shall be treated as repayment

during those years and interest on loan capital shall be calculated

accordingly.

“ ..21.2 New Loans (on or after ϭst April 2013)

(i) Rate of interest on new loans shall be equal to the base rate of SBI as

applicable on 1st April of the relevant financial year plus an appropriate

margin that realistically reflects the rate at which generating company

or the licensee can raise loans from the market. They shall however,

be required to submit due justification to the Commission for the

terms and conditions of the loans raised by them.

Provided that interest and finance charges on works in progress shall be excluded

and shall be considered as part of the capital cost;

[Nov-16] Page 40


Provided further that neither penal interest nor overdue interest shall be allowed

for computation of Tariff

(ii) Any variation above or below the allowed interest rate shall be subject

to the incentive and penalty framework specified in regulation 12.

(iii) The amount of loan shall be arrived in the manner as specified in

regulation 19 and shall be based on the approved capital investment

plan.

(iv) In case any moratorium period on repayment of loan is availed of by

the generating company or the licensee, depreciation provided for in

the tariff during the years of moratorium shall be treated as repayment

during those years and interest on loan capital shall be calculated

accordingly.

3.17.2 It is submitted that the Government of India has notified Ujwal Discom Assurance Yojana

(UDAY) scheme for operational and financial turnaround of power distribution companies

(DISCOMs), on 20th Nov 2015 under which State shall take over 75% of Discom debt as

on 30th September, 2015 over two years – 50% of Discom debt shall be taken over in FY

2015-16 and 25% in FY 2016-17. The implementation of UDAY leads to changes in the

projections of interest and finance charges for the Discoms which had an impact on the

revenue requirement of the Discoms.

3.17.3 It is submitted that the first tranche of UDAY bonds against 50% of the debt as on 3.9.2015

amounting to Rs. 17300 crore has been issued, after the finalization of the loans to be

taken over under this tranche and the terms and conditions of the UDAY bonds. Now the

second tranche has also been taken over towards 25% of the debt.

3.17.4 The major provisions of the UDAY scheme that have been taken into the account while

preparing the revised ARR:

75% of outstanding debt as on 30.09.2015 to be taken over in the form of equity / loan

/ Grant to DISCOMS.

Take-over in year 1: 50%, Year 2: 25%

[Nov-16] Page 41


Take-over assumed at the end of second quarter from year 2

The Bonds have been issues at an average coupon rate of 8.19%

3.17.5 In line with the above Regulation as well as considering the impact of UDAY scheme,

DHBVN has adopted the following methodology to estimate the Interest & Finance

Charges for the control period:

Table 16: Existing Working Capital, Operation Loss and REC/PFC Loans for FY 2016-17

loans during FY 2015-16

FY 2015-16

Opening Balance as

on 01.04.2015

ROI Planned Receipt

Principal Repayment

Closing Balance as

on 31.03.2016

Interest during the

Year

WCTL

Bank Loan

4,265.14 11.70%-12.25%

436.56

4,701.70

-

546.89

Bank Bond under FRP

2,202.37 9.80%

-

2,039.51

162.86

0.59

PFC TFL

2,000.00 12.03%-12.38%

-

71.43

1,928.57

242.56

REC TFL

950.00 11.78%-12.37%

395.00

8.33

1,336.67

161.78

HVPNL Bonds

626.25 8.62%-9.45%

-

-

626.25

62.88

State Govt.loan uder UDAY

- 8.21%

4,707.51

-

4,707.51

-

Loan from UHBVN

- 9.45-

12.37%

2,509.71

929.52

1,580.19

612.72

CC./OD

338.41 10.15%-11.65%

-

163.63

174.78

25.10

Total WCTL

10,382.17

8,048.79

7,914.13

10,516.83

1,652.51

Capex Loan

REC Scheme

1,345.02 9%-

12.50%

283.02

122.49

1,505.55

175.01

REC IBRD

2.97 8%-

11.5%

-

2.97

-

0.19

[Nov-16] Page 42


loans during FY 2015-16

FY 2015-16

Opening Balance as

on 01.04.2015

ROI Planned Receipt

Principal Repayment

Closing Balance as

on 31.03.2016

Interest during the

Year

REC-RGGVY

7.59 11.50%

-

0.84

6.74

0.86

PFC

4.26 9%

-

1.55

2.71

0.29

PFC-RAPDRP

43.34 9%

10.79

-

54.13

5.04

Bank uder Electrification scheme

182.01 11.65%

-

26.99

155.03

20.14

World Bank

132.19 LIBOR+

70.45

8.32

194.33

1.03

NCRPB

41.51 9.25%

4.52

26.33

19.70

2.72

NABARD

0.04 6.50%-

7%

-

0.04

-

-

APDRP

28.05 10.50%-12.50%

-

3.45

24.60

2.96

PMGY

0.75 10.50%-

12%

-

0.09

0.66

0.08

Total Capex

1,787.72

368.79

193.06

1,963.44

208.33

G.Total

12,169.88

8,417.57

8,107.18

12,480.27

1,860.84

Other Interest &Finance charges

1.62

Interest on Consumer Security

15.41

Total Loan with Interest Cost

1,877.87

Table 17: Existing Working Capital, Operation Loss and REC/PFC Loans for FY 2016-17 & FY 2017-18

[Nov-16] Page 43


Existing loans for first half of FY16-17 (01.04.2016 to 30.09.2016)

FY 2016-17

Opening Balance as

on 01.04.2016

ROI Planned Receipt

Principal Repayment

Closing Balance as

on 30.09.2016

Interest upto

30.09.2016

WCTL

Bank Loan

- 11.70%-12.25%

-

-

-

0.08

Bank Bond under FRP

162.86 9.80%

-

-

162.86

9.15

PFC TFL

1,928.57 12.03%-12.38%

-

1,928.57

-

47.50

REC TFL

1,336.67 11.78%-12.37%

-

1,336.67

-

34.29

HVPNL Bonds

626.25 8.62%-9.45%

-

-

626.25

10.69

State Govt.loan uder UDAY

4,707.51 8.21%

1,145.59

-

5,853.10

-

Loan from UHBVN

1,580.19

8.06-12.12%

1,449.55

1,187.24

1,842.50

83.03

CC./OD

174.78 10.15%-11.65%

95.82

293.93

-23.33

7.32

Total WCTL 10516.83 2690.96 4746.41 8461.38 192.06

Capex Loan

REC Scheme

1,505.55 9%-

12.50%

128.18

46.93

1,586.79

86.04

REC-RGGVY

6.74 11.50%

-

-

6.74

0.39

PFC

2.71 9%

-

0.77

1.94

0.06

PFC-RAPDRP

54.13 9%

14.59

-

68.72

-

Bank under Electrification scheme

155.03 11.65%

-

13.49

141.54

7.26

World Bank

194.33 LIBOR+

-

4.22

190.11

1.04

NCRPB

19.70 9.25%

-

11.41

8.29

0.11

APDRP

24.60 10.50%-12.50%

-

0.35

24.25

0.56

[Nov-16] Page 44


Existing loans for first half of FY16-17 (01.04.2016 to 30.09.2016)

FY 2016-17

Opening Balance as

on 01.04.2016

ROI Planned Receipt

Principal Repayment

Closing Balance as

on 30.09.2016

Interest upto

30.09.2016

PMGY

0.66 10.50%-

12%

-

0.01

0.65

0.01

Total Capex 1963.44 142.77 77.18 2029.03 95.48

G.Total 12480.27 2833.72 4823.59 10490.41 287.55

Estimates of loan for second half of FY16-17 (01-10-16 to 31-03-2017)

FY October 2016-17

Opening Balance as

on 01.10.2016

ROI Planned Receipt

Principal Repayment

Closing balance as

on 31.03.2017

Interest booked

(Oct 16 to Mar 17)

WCTL Bank Bond under FRP

162.86

9.80%

-

-

162.86

6.82

HVPNL Bonds1

293.40 9.45%

-

-

293.40

15.90

HVPNL Bonds2

200.00 9.83%

-

-

200.00

13.32

HVPNL Bonds3

132.85 8.62%

-

-

132.85

6.73

State Govt.loan under UDAY1

4,707.51

8.21%

-

-

4,707.51

386.49


978.43

8.18%

-

-

978.43

63.42


46.65

8.14%

-

-

46.65

2.85


120.51

8.06%

-

-

120.51

7.19

loan from banks (CC/OD)

243.07

10.95%

-

-

243.07

13.34

bonds (HVPNL)

61.51 9.79%

-

-

61.51

3.02

bonds (HVPNL)

19.46 9.45%

-

-

19.46

0.92

Capex loan

145.80 12.12%

-

-

145.80

8.86

[Nov-16] Page 45



FY October 2016-17

Opening Balance as

on 01.10.2016

ROI Planned Receipt

Principal Repayment

Closing balance as

on 31.03.2017

Interest booked

(Oct 16 to Mar 17)

FRP bonds

188.19 9.80%

-

-

188.19

20.16

Grant in aid

- 0.00%

-

-

-

-

State Govt. loan 31/3/2016

921.25

8.21%

-

-

921.25

75.63


230.50

8.18%

-

-

230.50

14.94


9.13

8.14%

-

-

9.13

0.56


23.58

8.06%

-

-

23.58

1.41

CC./OD

-23.33 10.90%

623.33

-

600.00

21.80

Total WCTL 8461.38 623.33 0 9084.70 663.35

Capex Loan

REC Scheme

1,586.79 9%-

12.50%

282.27

90.00

1,779.07

90.71

REC-RGGVY

6.74 11.50%

8.00

0.95

13.79

0.59

PFC

1.94 9.00%

-

0.77

1.16

0.07

PFC-RAPDRP

68.72 9.00%

60.00

6.44

122.28

2.86

Bank under Electrification scheme

141.54

9.75%

-

13.49

128.05

6.59

World Bank

190.11 LIBOR+

64.00

5.00

249.11

0.46

NCRPB

8.29 9.25%

-

8.29

-

0.69

APDRP

24.25 10.50%-12.50%

-

3.11

21.14

1.90

PMGY

0.65 10.50%-

12%

-

0.08

0.57

0.05

Total Capex

2,029.03

414.27

128.13

2,315.17

103.92

[Nov-16] Page 46



FY October 2016-17

Opening Balance as

on 01.10.2016

ROI Planned Receipt

Principal Repayment

Closing balance as

on 31.03.2017

Interest booked

(Oct 16 to Mar 17)

G.Total

10,490.41

1,037.60

128.13

11,399.88

767.27

Projection of loans for FY 17-18

FY 2017-18 Opening

Balance as on 01.04.2017

ROI Planned Receipt

Principal Repayment

Closing balance as on

31.03.2018

Interest booked during the year

WCTL Bank Bond under FRP 162.86 9.80% 0 0 162.86 15.96

HVPNL Bonds1 293.40 9.45% 0 0 293.4 27.73

HVPNL Bonds2 200.00 9.83% 0 0 200 19.66

HVPNL Bonds3 132.85 8.62% 0 0 132.85 11.45

State Govt.loan uder UDAY1 4707.51 8.21% 0 2017.50 2690.01 303.67

State Govt.loan uder UDAY2 978.43 8.18% 0 978.43 80.04



loan from banks (CC/OD) 243.07 10.95% 0 0 243.07 26.62

bonds (HVPNL) 61.51 9.79% 0 0 61.51 6.02

bonds (HVPNL) 19.46 9.45% 0 0 19.46 1.84

Capex loan 145.80 12.12% 0 0 145.80 17.67

FRP bonds 188.19 9.80% 0 0 188.19 18.44

Grant in aid 0.00 0.00% 0 0 0.00 0.00

State Govt. loan 31/3/2016 921.25 8.21% 0 394.84 526.41 59.42

State Govt. loan 15/6/2016 230.50 8.18% 0 0 230.50 18.86

State Govt. loan 30/06/2016 9.13 8.14% 0 0 9.13 0.74

State Govt. loan 4/07/2016 23.58 8.06% 0 0 23.58 1.90

CC./OD 600.00 10.15%-11.65% 0 0 600.00 65.40

[Nov-16] Page 47


Projection of loans for FY 17-18

FY 2017-18 Opening

Balance as on 01.04.2017

ROI Planned Receipt

Principal Repayment

Closing balance as on

31.03.2018

Interest booked during the year

Total WCTL 9084.70 0.00 2412.35 6672.36 688.92

Capex Loan REC Scheme 1779.07 10.75% 658.00 159.65 2277.41 218.04

REC-RGGVY 13.79 11.50% 11.00 1.00 23.79 2.16

PFC 1.16 9.00% 0.00 1.16 0.00 0.05

PFC-RAPDRP 122.28 9.00% 10.00 19.32 112.96 7.56

Bank under Electrification scheme 128.05 9.75% 0.00 26.98 101.08 11.17

World Bank 249.11 LIBOR+ 0.00 10.00 239.11 2.44

NCRPB 0.00 9.25% 0.00 0.00 0.00 0.00

APDRP 21.14 10.50%-12.50% 0.00 3.45 17.69 2.20

PMGY 0.57 10.50%-12% 0.00 0.09 0.48 0.06

Total Capex 2315.17 679.0 221.65 2772.52 243.68

G.Total 11399.88 679.0 2634.00 9444.88 932.60

Other Interest &Finance charges 3.00

Interest on Consumer Security 101.23

Total Loan with Interest Cost 1036.83

3.17.6 Interest on Capex Loan to be raised for the ensuing control period: The increase in the

loans for capital expenditure are estimated as per the capital structure for funding of

assets and debt to be raised as per the Capital Investment Plan.

3.17.7 Interest on Consumer Security Deposit:

The petitioner submits that Interest on Security Deposit amount has been claimed as per

the provision of MYT Regulations, 2012. As per Para 21.4 of MYT Tariff Regulations, dated

26/12/2012,

[Nov-16] Page 48


“Interest shall be allowed on the amount held as security deposit held in cash from

Transmission System Users, Distribution System Users and Retail consumers, at the

Bank Rate as on 1st April of the financial year in which the petition is filed provided it

is payable by the transmission/distribution licensee. “

Hence, the Petitioner has considered Interest for Security Deposit as per prevailing RBI

Bank Rate of 7.75% as on 1st April, 2016. The increase is consumer security deposit for FY

2016-17 and FY 2017-18 is projected on the basis of actual increase in past two years.

Table 18: Interest on Consumer Security Deposit for FY 2016-17 and FY 2017-18

Sr. Particulars Actual for FY

2015-16 RE for FY 2016-17

Projected for FY 2017-18

1 Opening Security Deposit 974.55 1,050.26 1,150.26

2 Addition during the year 75.71 100.00 100.00

3 Cumulative Security Deposit at the end of year 1,050.26 1,150.26 1,250.26

4 Total 1,012.41 1,100.26 1,200.26

Average applicable amount to pay interest 1,012.41 1,100.26 1,200.26

5 Bank Rate (as on 01.04.2016) 7.75% 7.75%

6 Interest on Security Deposit 85.27 93.02

3.17.8 Repayment of Working Capital Loans: The Petitioner requests the Hon’ble Commission

to kindly allow the repayment of FRP loans to be considered under Interest and Finance

charges as an exceptional scenario. It is further submitted that these are different from

capex wherein the repayment of loans are funded through the depreciation allowed by

the Hon’ble Commission.

3.17.9 Interest Capitalized: The interest capitalization ratio for FY 2016-17 and FY 2017-18 is

considered same as per the actual capitalization ratio for FY 2015-16. The summary of

total interest and finance charges for FY 2016-17 and FY 2017-18 is given below:

Table 19: Interest & Finance Charges for FY 2016-17 and FY 2017-18


2015-16 RE for FY 2016-17


1 Total Interest and finance charges on short term loan

1,651.92 855.41 688.92

2 Interest on Capex Loan 208.33 199.40 243.68

[Nov-16] Page 49



2015-16 RE for FY 2016-17


3 Total Interest and Finance Charges 1,860.24 1,054.81 932.60

4 Less: Interest and Finance Charges capitalized during year

105.08 99.52 121.62

5 Net Interest and Finance Charges 1,755.16 1,054.81 810.98

6 Interest on security deposit 15.41 85.27 93.02

7 Guarantee fee (2%) 1.62 3.00 3.00

Total Interest and Finance Charges (Cr.) 1,772.19 1,143.08 907.00

The petitioner requests Hon’ble Commission to approve the estimated interest and

finance charges for FY 2016-17 and FY 2017-18, as tabulated above.

3.18 Depreciation

3.18.1 For FY 2016-17 and FY 2017-18, DHBVN has estimated depreciation charges on the basis

of estimated additions in GFA as per the capital investment plan for the FY 2016-17. The

transfer of total Capex to fixed asset has been considered as 70%. Based on the Capex

done from April 2016 to September 2016, the Capital expenditure is estimated to be Rs.

825 Cr. in FY 2016-17 and Capital expenditure during FY 2017-18 has been projected as

Rs. 1200 Cr.

3.18.2 For the purpose of projecting depreciation charges for FY 2016-17, the licensee has

considered the category-wise actual depreciation rates (as a percentage of opening

balance of asset-class-wise GFA for that year) as per HERC MYT Tariff Regulations, 2012

as amended from time to time. The addition of the assets in different heads has been

done on the basis of actual ratio of FY 2015-16. The following depreciation rates have

been used for calculating depreciation:

Table 23: Asset Wise Depreciation Rate

Asset Type Rate of Depreciation

Land -

Buildings 3.34%

Plant & Machinery 5.28%

Vehicle 18.00%

Furniture and fixtures 6.33%

3.18.3 The following depreciation workings have been provided for the reference:

[Nov-16] Page 50


Table 24: Depreciation for FY 2016-17

Particulars Opening

assets during the year

Addition in GFA in FY 2016-17

Gross Block as on

31.03.2017

Rate of depreciation (%)

Depreciation during the

year Land & Land Rights 26.62 3.32 29.95 - -

Buildings & Civil Structure 201.54 25.15 226.69 3.34% 6.52

Plant & Machinery 6,350.41 792.50 7,142.91 5.28% 315.73

Vehicles 13.66 1.70 15.37 18.00% 2.47

Furniture & Fixture 18.61 2.32 20.93 6.30% 1.13

Less: Depreciation on assets contributed by Consumers and grants

89.61

Total (Rs. Cr.) 6,611 825.00 7,435.84 236.24

Table 20: Depreciation for FY 2017-18

Particulars Opening

assets during the year

Addition in GFA in FY 2017-18

Gross Block as on

31.03.2018

Rate of depreciation (%)

Depreciation during the

year Land & Land Rights 29.95 4.83 34.78 - -

Buildings & Civil Structure 226.69 36.58 263.27 3.3% 7.57

Plant & Machinery 7,142.91 1,152.73 8,295.64 5.3% 377.15

Vehicles 15.37 2.48 17.85 18.0% 2.77

Furniture & Fixture 20.93 3.38 24.31 6.3% 1.32

Less: Depreciation on assets contributed by Consumers and grants

73.00

Total (Rs. Cr.) 7,435.84 1,200.00 8,635.84

315.80

3.18.4 The petitioner requests Hon’ble Commission to approve the depreciation computed

based on the estimated addition to GFA for FY 2016-17 and FY 2017-18, as tabulated

above.

3.19 Non-Tariff Income

3.19.1 The Non-Tariff income mainly comprises the following elements:

Interest on staff loans & advances;

Interest on fixed deposits with banks & company etc;

Meter Service Rental;

[Nov-16] Page 51


Recovery of theft of Power;

Interest Income on Provident Fund;

Misc. Charges from consumers;

Income from staff welfare activities;

Miscellaneous receipts;

Rent from Residential Building;

The petitioner has estimated non-tariff income for FY 2016-17 and FY 2017-18 at

escalation rate of 5% based on the actuals of FY 2015-16. The year wise non-tariff income

is given below:

Table 21: Non- Tariff Income for FY 2016-17 and FY 2017-18 Rs. Cr

Particulars Approved for FY 2016-17 RE for FY 2016-17 FY 2017-18

Non-Tariff Income 170.01 235.68 247.47

3.19.2 The Petitioner further submits that delayed payment surcharge is collected against the

receivables from the consumers that are not received in time. As there is a delay in

receiving the revenue, the Nigam has to procure additional working capital. Therefore, the

revenue received on account of delayed payment surcharges is not an income of the

Nigam, rather it’s a carrying cost recovered from consumers to pay the interest on the

increased portion of working capital which occur because of delay in receiving the revenue.

Therefore, it is requested that the revenue from delayed payment surcharge should not

be considered as income of the Nigam.

3.19.3 DHBVN prays the Hon’ble Commission to approve non-tariff income for FY 2016-17 and

FY 2017-18 as tabulated above after adjusting the income on account of delayed payment

surcharge.

3.20 True up of RE subsidy for FY 2015-16

3.20.1 The total agricultural sales approved by the Hon’ble Commission in FY 2015-16 were and

against the same a subsidy of Rs. 6196.91 for UHBVN and DHBVN was allowed. This

amounts to a per unit subsidy of Rs. 7.23 /unit. Based on the feeder data, the actual

agricultural sales, following HERC methodology of 16% losses on AP Feeder data emerges

to 8,905.19 MUs for UHBVN and MUs for DHBVN.

[Nov-16] Page 52


3.20.2 Therefore, for total sales of 8905.19 MUs, the eligibility of subsidy emerges to Rs. 6438.74

Cr. Consequently, post true up, the surplus subsidy emerges to Rs 241.83 Crores

Table 22: True up of RE subsidy for FY 2015-16

Particulars 2015-16

Total RE subsidy allowed by HERC in Tariff order for 2015-16 (Rs Crs) 6,196.91

Total Agricultural sales approved by HERC in T.O (Mus) 8,570.73

Approved Per unit Subsidy (Rs./unit) 7.23

Agriculture Sales based on Feeder data minus 16% losses (Mus) UHBVN 3,936.09

Agriculture Sales based on Feeder data minus 16% losses (Mus) DHBVN 4,969.10

Agriculture Sales based on Feeder data minus 16% losses (Mus) 8,905.19

Eligibility of subsidy based on actual sales of 2015-16 (Rs. Crs) 6,438.74

Subsidy Outstanding/(Surplus) (Rs. Crs) 241.83

3.21 Revenue Estimation

3.21.1 The revenue calculations have been done considering the Average Billing Rate (ABR) of

from April to September 2017 and the category wise sales estimated for FY 2016-17.

Category wise ABR is estimated based on the actual revenue collected divided by actual

units billed in first half of FY 2016-17. The ABR achieved as above is being used for revenue

estimation for FY 2016-17 and FY 2017-18, the details of revenue calculations have been

given below:

[Nov-16] Page 53


Table 23: Revenue Estimations for FY 2016-17

FY 2016-17

Consumer Category Sales (MUs) Average Billing Rate

(Rs. Per unit) Energy Charge

(Cr.)

Domestic 4,486.68 4.92 2,207.45

Non Domestic 2,781.33 6.53 1,816.21

HT Industry 4,835.41 6.55 3,167.20

Lift Irrigation 174.20 7.29 126.99

LT Industry 949.51 6.62 628.58

Agriculture 5,209.05 0.12 62.51

Bulk Supply 597.90 5.50 328.85

Railway Traction 160.70 6.04 97.06

DMRC 0.00

Street Lighting 72.23 6.90 49.84

Public Water Works 510.08 7.72 393.78 19,777 4.49 8,878.46

Fixed Charge 972.56

Total 19,777.10 4.98 9,851.02

Collection Efficiency 99%

Revenue (Cr.) 9,752.51

Table 24: Revenue from Sale of Power for FY 2017-18

FY 2017-18


( Rs. Per unit) Energy Charge

( Cr.)

Domestic 4,859.03 4.92 2,390.64

Non Domestic 3,167.24 6.53 2,068.21

HT Industry 4,895.29 6.55 3,206.41

Lift Irrigation 198.24 7.29 144.51

LT Industry 1,024.75 6.62 678.39

Agriculture 5,469.50 0.12 65.63

Bulk Supply 643.51 5.50 353.93

Railway Traction 153.17 6.04 92.51

DMRC 0.00

Street Lighting 82.23 6.90 56.74

[Nov-16] Page 54


FY 2017-18


( Rs. Per unit) Energy Charge

( Cr.)

Public Water Works 536.57 7.72 414.23

21,030 4.50 9,471.21

Fixed Charge 1,043.05

Total 21,029.52 5.00 10,514.26

Collection Efficiency 99%

Revenue (Cr.) 10,409.12

3.21.2 It is submitted by petitioner that above computed revenue is based on the Average Billing

Rate of FY 2016-17; and revised projections of sales for respective years and thus, the

Hon’ble Commission is requested to approve the same.

3.22 Revenue from inter-state sales

3.22.1 Revenue from inter-state sales projected for FY 2016-17 and FY 2017-18 has been

considered at 80% of average variable power purchase cost

Table 25: Revenue from Inter-state Sale of Power for FY 17 and FY 18

Particulars FY2016-17 FY 2017-18

Inter State Sales (MU) 2975.64 3420.68

Average Variable Power Purchase Cost (Rs./kWh) 2.58 2.60

Total Revenue (Rs. Cr.) 613.58 711.76

3.22.2 Hon’ble Commission is requested to approve the same.

3.23 Agriculture Subsidies

3.23.1 The Agriculture Subsidy for the FY 2017-18 has been taken after escalating the approved

subsidy of FY 2016-17 by 5%. Impact of Truing up of subsidy of FY 2015-16 has also been

considered in FY 2017-18.

[Nov-16] Page 55


3.24 Revenue from FSA

The Nigam pursuant to directive of Hon’ble Commission given vide the tariff order dated

01.08.2016 has filed replies vide SE/RA, UHBVN, Panchkula Memo No. CH-55/SE/RA/N/F-

24/VOL-XI (A) dated 16.09.2016. The Nigam has also filed Review petition against the

impugned tariff order dated 01.08.2016 vide Memo No. CH-10/SE/RA-557 dated

05.11.2016. The Nigam has proposed levy of FSA across the categories at the rate

determined vide order dated 19.03.2016 against the confirmed liabilities rising on account

of APTEL judgements on Change in Law, CoD and Force Majeure. The Nigam has considered

an income of FSA against these liabilities in FY 2016-17 and FY 2017-18 i.e. Rs 1823.61 Cr

and Rs 1939.58 Cr.

Chapter 4. Performance Review for FY 2016-17 and Annual Revenue Requirement for FY

2017-18

4.1.1 This chapter summarises the aggregate revenue requirement for the period FY 2016-17

to FY 2017-18 and also provides the break-up into Wheeling and Supply business on the

basis of the Allocation adopted by DHBVN.

4.1.2 The following table summarizes the estimated and projected Aggregate Revenue

Requirement (ARR) of DHBVN for FY 2015-16 and FY 2016-17 respectively.

Table 26: ARR for FY 2016-17 and FY 2017-18

Summary of Actual ARR

Sr. Particulars Revised Estimate for

FY 2016-17 Projected for FY

2017-18

1 Total Power Purchase Cost 13,316.55 14,010.19

1.1 Power Purchase Expenses 11,792.20 12,409.62

1.2 Inter-state transmission charges 856.40 899.22

1.3 Intra-state transmission charges 667.95 701.34

2 Operations and Maintenance Expenses 1,370.88 1,392.76

2.1 Employee Expense 786.03 815.88

2.2 Administration & General Expense 74.87 77.72

[Nov-16] Page 56


Summary of Actual ARR

Sr. Particulars Revised Estimate for

FY 2016-17 Projected for FY

2017-18

2.3 Repair & Maintenance Expense 109.99 114.16

2.4 Terminal Liability 400.00 385.00

3 Depreciation 236.24 315.80

4 Total Interest & Finance Charges 1,143.08 907.00

5 Return on Equity Capital 215.88 242.42

6 Prior Period Expense

7 Other Debits 32.49 32.49

8 Total Expenditure 16,315.11 16,900.65

9 Less: Non Tariff Income 235.68 247.47

10 Net Aggregate Revenue Requirement 16,079.43 16,653.18

11 Total Revenue 10,366.09 11,120.88

11.1 Revenue from Interstate sales 613.58 711.76

11.2 Revenue from Intrastate sales 9,752.51 10,409.12

13 Regulatory (Gap)/Surplus (5,713) (5,532)

14.1 Govt. subsidy 2,373.42 2,492.09

14.2 True-up of Subsidy FY 2014-15 200.41

14.3 True-up of Subsidy FY 2015-16 96.73

16 Revenue (Gap)/Surplus after Subsidy (3,140) (2,943)

17 Revenue (Gap)/Surplus after FSA (1,011) (1,004)

17.1 FSA of Order Dated 19.03.2015 1,823.61 1,939.58

17.2 FSA @ 40 p 305.32

[Nov-16] Page 57


Table 27: Wheeling and Retail ARR for FY 2016-17 and FY 2017-18

ARR of DHBVN Criteria FY 2016-17 FY 2017-18

Particulars Wheeling Retail Wheeling Retail Wheeling Retail

Power Purchase Cost 0% 100% - 13,316.55 - 14,010.19

Employee Cost 48% 52% 377.29 408.73 391.62 424.26

A&G Expenses 42% 58% 31.45 43.43 32.64 45.07

R&M expenses 70% 30% 76.99 33.00 79.91 34.25

Terminal Liability 48% 52% 192.00 208.00 184.80 200.20

Depreciation 82% 18% 193.72 42.52 258.95 56.84

Interest on Long Term Loan 90% 10% 89.89 9.99 109.85 12.21

Interest on Short Term Loan 10% 90% 85.54 769.87 68.89 620.03

Interest on security Deposit 10% 90% 8.53 76.74 9.30 83.72

ROE 90% 10% 194.29 21.59 218.18 24.24

Non Tariff Income 11% 89% 25.93 209.76 27.22 220.25

Net ARR 1,275.62 15,140.17 1,381.38 15,731.25

Revenue (Interstate) 0% 100% - 613.58 - 711.76

Revenue (Intrastate) 29% 71% 2,828.23 6,924.29 3,018.64 7,390.47

Agriculture Subsidy 0% 100% - 2,573.83 - 2,492.09

Interest from FSA 0% 100% - 2,128.93 - 1,939.58

Carrying Cost - - - -

Total Revenue 2,828.23 12,240.62 3,018.64 12,533.90

Gap to be addressed ( after conceding FSA Income ) 1,552.61 (2,900) 1,637.27 (3,197)

Thus, the Hon’ble Commission is requested to approve the cumulative revenue gap from FY 2015-16 to FY 2017-18 after taking

into consideration the revenue gaps, holding costs and subsidies to be availed..

Nov-16 Page 58

True Up for FY 2013-14 Petition for APR FY 2015-16 and ARR for

FY 2016-17 for DHBVNL

Chapter 5. Recovery of Gaps

5.1 Recovery of Gaps

5.1.1 The ARR has been prepared on the basis of actual wherein the foreseen expenses and

revenue have been projected. The Hon’ble Commission is requested to continue with the

current levels of tariff and FSA based on which the total gap after Truing-up of FY 2015-16

, revised estimates of FY 2016-17 and FY 2017-18 has been computed. The Commission is

requested to all the revenue gap of previous years along with carrying cost.

5.1.2 The resultant gap after continuation of current levels of tariff and FSA will be met through

the OFR as proposed under UDAY.

Nov-16 Page 59



Chapter 6. Prayers to the Commission:

The Nigam respectfully prays that the Hon’ble Commission may:

Take the accompanying current APR filing of DHBVN on record and accept the petition

for filing including requests for true up of expenses and revenue for FY 2015-16, Re-

estimated ARR gap for FY 2016-17 and projected ARR gap for FY 2017-18;

To file any additional submissions and revised petition after the decision on the review


period i.e. 07.01.2017 (two months from 07.11.2016) as already submitted.

To approve reasonable return on equity as proposed.

Condone any inadvertent omissions/errors/shortcomings and permit DHBVN to

add/change/modify/alter this filing and make further submissions as may be required

at a future date.

Pass such Order, as the Hon’ble Commission may deem fit and appropriate keeping in

view the facts and circumstances of the case submitted by the Petitioner.

To Allow fixed charges of Power purchase as per the actual for FY 2015-16, and that

projected for FY 2016-17 and FY 2017-18 as same is not the function of T&D losses and

must not be allowed based on the normative power purchase.

To continue the current levels of Tariff and FSA to meet the expenses while the gap

will be funded by OFR as proposed under UDAY scheme.

Hisar, Haryana

Dated: 30-11-2016

Dakshin Haryana Bijli Vitran Nigam Limited

Petitioner

Nov-16 Page 60


Annexure 1: Annexure of directives

Sr.

No. Description of Directive

Reply

1 The HERC vide its Regulation (Standards of Performance for Distribution

Licensee) Regulations 2004, has specified the failure rate of distribution

transformers as maximum 5% for urban area DTs and maximum 10% for

rural area DTs .The distribution licensee shall maintain a proper record of

failure of the distribution transformers and submit the same in the quarterly

report to the Commission.

“In Commission’s order dated 07th May, 2015 on APR petition of the

licensees for the FY 2014-15 and revised ARR for FY 2015-16, the licensees

were directed examine the cause of damage of DTs in the areas where it

is above the norms and endeavour to bring down the distribution

transformer damage rate below the prescribed limits by ensuring proper

maintenance and protection”

In compliance of the above directive, the licensee DHBVNL has not submitted

any satisfactory reply except that requisite instructions have been imparted

to all the S.Es vide Sales Instruction No. 10/2015. To summarize, the cause of

damage of DTs has not been examined and intimated to the Commission.

As per Regulation 65.1 (iii) of Haryana Electricity Regulatory Commission

(Terms and Conditions for Determination of Tariff for Generation,

Transmission, Wheeling and Distribution & Retail Supply under Multi Year

Tariff Framework) Regulations 2012, the distribution licensee shall maintain a

All efforts are being made to reduce the damage rate

of DTs in urban & rural area. The performance /status

of each circle (subdivision wise) is being reviewed/

monitored at management level regularly. The causes/

reasons for damage of distribution T/F have been got

analysed from field offices and deliberated during ORC

meetings.

The main reasons for damage of DTs noted are as

under:-

1. Overloading of DTs in Agriculture due to non-declaration of load.

2. Poor Maintenance 3. Improper earthing 4. Loose joints/connection of HT/LT side. 5. Unauthorized Kundi connection 6. Overheating 7. Spark in G.O Switch 8. Low oil level in DTs 9. Improper phase balancing of load on DTs. 10. Oversize fuse on HT and LT.

The preventive measures are being taken to protect

the T/F’s from damage due to above reasons.

Nov-16 Page 61


proper record of failure of the distribution transformers and submit the same

in the quarterly report to the Commission. The licensees, however, have failed

to do so in spite of issuing directions in Commission’s order on ARR of the two

licensees for the control period FY 2014-15 to FY 2016-17 and also in

Commission’s order dated 07th May, 2015 on their APR petitions for FY 2014-

15. The Discoms are again directed to submit these quarterly reports in

future.

During FY 2015-16, DTs damaged rate (excluding

warranty period) in urban and rural areas is 3.98%

&6.14% respectively. Further, the damage rate of DTs

(excluding warranty period) in urban & rural area for

FY 2016-17 (upto September 2016) is 2.11% &4.28 %

respectively. From the above it is evident that Nigam

has controlled the damage rate of transformers in

rural and urban area within limit in the previous

financial year. Further, the summer seasons for

current financial year is already over and the

remaining period of the year is a lean period, thus

DHBVN endeavours to restrict the damage rate within

the prescribed norms.

2 Non replacement of defective energy meters by the distribution licensees:

In Commission’s order dated 07th May, 2015, the following targets were

assigned to the licensees for replacement of defective energy meters.

a. Single phase meters: The number of defective energy meters should

not exceed 10,000 at any time after December, 2015.

b. Three phase meters: The number of defective energy meters should

not exceed 500 at any time after December, 2015.

The two licensees are nowhere to these targets except that in respect of

UHBVNL, the number of defective three phase energy meters is 1065.

The licensees are, therefore, directed to submit a detailed report within two

months from the date of issue of this order, indicating the detailed reason

The meter being defective with passage of time in the

system and their replacement is a continuous process.

In DHBVN there are about 12 Lakh consumers in urban

area and about 18 Lakhs in rural area. All efforts are

being made to replace the defective meters with main

thrust on urban area.

For replacement of defective meters in urban area

feeder sanitization scheme has been launched under

UDAY under which all the meters are being relocated

outside and defective meters are being replaced.

In rural area similar activity of relocation of meter

outside and replacements of defective meter is being

carried out under Mhara Gaon Jagmag Gaon scheme.

During current FY 2016-2017 64923 no defective

meters have been replaced upto September, 16

Nov-16 Page 62


for not meeting with the targets assigned failure to do so shall attract penal

action as per the Electricity Act, 2003.

The total population of defective meters as on

30.09.2016 is given as under.

Area Single

Phase

Three

Phase

Urban 13723 4604

Rural 98598 47468

Total 112321 52072

The Nigam intends to replace the defective meter

through above scheme in urban and rural area. It has

been noticed that about 5% of the total meters remain

defective in the system, being a continuous process of

occurring defective with the passage of time.

3 Non replacement of Electro-mechanical Meters: In Commission’s order 07th

May, 2015 on APR petitions of the licensees for FY 2014-15, the licensees were

directed to replace these Electro-mechanical meters by 31st March, 2016 by

making all necessary arrangements. But as per progress report, the number

of electro-mechanical meters have reduced only by about 77000 in a span of

9 months.

The licensees are directed to file, within 3 months, the detailed reasons for

not complying with the directive of the Commission. A failure to do so shall

attract penal action as per the Electricity Act, 2003

The status of replacement of electromechanical

meters during FY 2016-17 upto September, 2016 is as

under:-

Year

No. of Electro-

mechanical

meters

replaced with

electronic

meters

No. of Electro-

mechanical meters

2016-17

(upto

Sept. 16)

30749 331104

Nov-16 Page 63


It is submitted that most of the electro mechanical

meters pertain to rural area which contribute only 7-

8% to the total revenue. Due to practical scenarios,

Nigam is focusing primarily on Urban consumers. In

urban area all the electromechanical meters will be

replaced by 31.01.2016. In rural area,

electromechanical meters are being replaced under

Mhara Gaon Jagmag Gaon scheme.

4 Procurement of single phase and three phase LT meters: This Tariff Policy,

2016 specifies that the Commission shall mandate for smart meters for

consumers having monthly consumption above 500 units at the earliest but

not later than 31.12.2017 and for consumers having monthly consumption

above 200 units by 31.12.2019. The licensees are, therefore, directed that in

future only the smart meters, which can be configured both for pre-paid and

post-paid functions, be procured. The normal meters which are in the pipeline

may be provided in the rural areas only.

The smart meters technology is still in the evolving stage. Also at present the cost of smart meters is very high in the stage of 5-6 times the static meters. A pilot project is being implemented in Panipat by NEDO and also DHBVN is planning to launch smart meter project in Gurgaon under smart Grid Projects. Thereafter final decision will be taken.

Since large numbers of meters become defective on daily/monthly/yearly basis, it may not be possible to immediately switch over to smart meters, which are not freely available at competitive rates.

5 The Commission Orders that the Discoms may continue with the revised

‘Tatkal Scheme’ for any applicant for AP connection, who has applied after

31.12.2012 and who is desirous of obtaining a tube well connection

expeditiously can opt for a connection under Tatkal facility subject to the

condition that such applicant shall pay Rs. 1 Lac besides the estimated cost of

releasing such electricity connection for jumping the queue. This is subject to

the condition that the release of connections under ‘Tatkal’ shall in no way

affect the number of tube-well connections to be released under general

category.

The Nigam has already extended the facility of Tatkal

connection to AP consumer irrespective of their date

of application vide Sales Circular No. D-30/2015. The

connections to be released under the said scheme

shall in no way affect the number of tubewell

connection to be released under General Category.

Further, the Nigam has issued Sales Circular No. D-

11/2016 on 28.04.2016 wherein it has been stipulated

that demand notice in respect of AP category shall be

Nov-16 Page 64


issued to applications received upto 31.12.2013 under

General Category.

6 The Commission directs the licensee that for any capex undertaken by the

licensee without the approval of the Commission and on the direction of the

State Govt., the funding of the same has to come from grant/subvention from

the State Govt. and cannot be allowed through ARR/Tariff.

Additionally, the Capex details provided by the licensee further reveals that the licensee has over spent on some capital works without the prior approval of the Commission. In respect of the work ‘Release of Tube well connections on turnkey basis’ the expenditure spent is Rs. 114.02 Crores against approved investment of Rs. 6.36 Crores. In their last year filing, the licensee had indicated that an expenditure of Rs. 4.81 Crores had been made on this work upto September 2014 and that during next six months the likely expenditure would be Rs.1.55 Crores. As such the licensee demanded a revised investment of Rs. 6.36 Crores on this work which was approved, but now the actual expenditure incurred is intimated as Rs. 114.02 Crores stating the reason that more connections were applied and released. From statistical data of the licensee it is gathered that they have released only 10317 tube well connections during FY 2014-15 which are even less than the tube well connections released in FY 2011-12, FY 2012-13 and FY 2013-14. The licensee is, therefore, directed to file a detailed report justifying this expenditure. The licensee is again directed by the Commission to keep the work wise expenditure within the limit of investment approved for a particular work.

Out of total of 10317 no. Tubewell connections

released during FY 2014-15, 8192 no. Tubewell

connections were released under Self Execution

scheme during FY 2014-15. Further, it is intimated that

approximately Rs. 1.30 Lacs expenditure has been

incurred on the release of one no. Tubewell

connection.

An additional amount of 107.66 Lacs has been

incurred due to the release of tubewell connections

under self execution scheme , which has been

financed by the concerned consumer applied for

their tubewell connections which was excluded from

the amount intimated to Hon’ble Commission.

Nov-16 Page 65


7 The Commission has given 3 months’ time to the Distribution Licensees to

submit status report bringing out the measures/ efforts taken/ made to meet

the targets provided in the directives and detailed reason for non-compliance,

failing which the proceedings under Section 142 of the Act, may be initiated

against the defaulting Discoms.

Similarly other directives i.e. timely payment of interest on consumer’s security deposit, centralisation of pay and pension disbursement, age wise audit of receivables etc. which was also raised by the interveners, the Commission gives further 45 days’ time to the Discoms to comply and submit a compliance report to the Commission. It is made clear that the directives needs to be complied with meticulously and no reasons / justification for non-compliance shall be accepted by the Commission

A. Timely payment of interest on consumer’s security

deposit:-

Sales Instructions No. 9/2016 has been issued on

the subject. In the ibid Sales Instructions directions

have been passed to field offices that the updated

ACD of the consumers is to be provided to the billing

agencies for incorporation in the consumer’s data

base up to 31.12.2016 so that the procedure

regarding interest on ACD / revision of ACD is carried

out through the system. In case there is delay in the

payment of interest the interest paid on outstanding

amount shall be recovered from the delinquent

officers/officials.

B. Centralization of Pay & Pension Disbursement:-

In DHBVN, the pay of all group A & B officers is already

centralized. The efforts for centralized pay

disbursement of rest of the staff are underway. The

Haryana Power Discoms are in the process of

implementing ERP solutions and the software of

centralized disbursement of pay is proposed under

such ERP Solution.

The centralized Pension Disbursement Cell (PDC) has

already been set up in DHBVN and all the employees

who are retiring at present are given pension through

in-house PDC. Further the pension payment cases

from all the DDOs in DHBVN have already been

transferred to in-house PDC and their pension is being

Nov-16 Page 66


disbursed by the PDC instead of through various DDOs

located at different places.

For the employees who are getting their pension

through the banks of their choice at their request, the

DHBVN is in the process to call back all such pension

cases from the banks in phases to avoid any

inconvenience to our pensioners/senior citizens.

C. Presently, a facility to work out the age wise analysis

of debtors is not available and this analysis of such a

large consumer base cannot be carried out manually

by outsourcing this work to various CA firms. The

requirement for developing a suitable mechanism for

tracking of debtors through ageing analysis is being

explored with the billing agency so that system based

analysis could be carried out for this purpose.

8 The Commission orders that the recovery of FSA pertaining to the FY 2014-15

shall be stopped forthwith. In case any FSA amount pertaining to the FY 2014-

15 has been recovered after 31.03.2016, the same shall be quantified and

intimated to the Commission by the Discoms within 15 days from the date of

this Order

In compliance to the above directives FSA pertaining

to FY 2014-15 has been stopped w.e.f. 1.09.2016 vide

Sales Circular No. D-27/2016.

Regarding recovery of FSA amount of Rs. 0.37

paise/unit for the period after 1/04/2016 i.e. April to

August, it is stated that the billing software of DISCOM

shows the consolidated FSA as applicable in the bill of

a consumer pertaining to particular category.

However based on the total units (other than AP)

billed for the period April to August , 2016 in DHBVN

Nov-16 Page 67


are 622.60 crores hence the FSA @ Rs. 0.37 paise/Unit

on this billed units worked out to Rs. 230.36 crores.

9 The commission directs the licensee provide incentive of Rs. 1/kWh instead of

Rs. 0.25/kWh for rooftop solar system, installed under the new Solar Policy of

Haryana Government after 01.08.2016 by DS consumers.

The requisite instructions in this regard has been

circulated vide Sales Circular No. D-25/2016. The

process for extending this rebate through billing

software has been finalized and shall be implemented

shortly.

10 A rebate of 5% allowed for the consumers availing supply through prepaid meters.

The requisite instructions in this regard has been

circulated vide Sales Circular No. D-44/2014 issued on

14.11.2014.

11 The Commission directs the Discoms to take up the issue of direct transfer of RE Subsidy to the eligible AP consumers in their Aadhar linked bank account as already implemented by the Central Government for Domestic LPG (direct benefit transfer).

Falls under the purview of State Govt.

12 Issuance of bills and realization of payment thereof in urban areas It will be mandatory for consumers of all categories with a load of 20 KW and

above to download their bills from the Discoms website.

Domestic consumers with a load less than 20 KW in urban areas falling under

the Municipal Corporation/Municipal Committee shall have three options:-

a) The consumers who would download their bills from the website of the Discoms shall be given a rebate of Rs.5/- per bill. However, Senior Citizen shall get a rebate of Rs.10/- per bill.

b) The consumer can opt for the bills through SMS or on e-mail without any charges.

c) However, the consumer who opts for a printed copy of the bill, will be provided the same on a payment of Rs.5/- except senior citizens and consumers with a load less than 8 KW.

The Consumer database is under compilation. Once

the same is completed, the directions of the Hon’ble

Commission will be implemented.

Nov-16 Page 68


13 Consumers of urban areas falling under Municipal Corporations/Municipal

Committee can opt to pay their bills online/RTGS/NEFT or through authorized

banks. In such cases:-

I. Consumers whose bill amount is less than Rs.15,000/- can pay their bills online directly on the Discoms website and avail a rebate of Rs.5/-.

II. It will be mandatory for consumers having bills exceeding Rs.15,000/- to pay their bills online/RTGS/NEFT or authorized banks.

DHBVN currently has implemented online payment of

bills for urban consumers through RTGS/ NEFT for bill

amount of more than Rs. 50,000. Further, the Hon’ble

Commission directive for online bill payment for bill

amount of Rs. 15,000 and more for urban consumers

may be allowed to be implemented in phased manner

up to 31.03.2017 to avoid any re-conciliation issue for

such a large number of consumers.

14 The commission directs that, in case of non-availability of the bill, the consumers opting for receiving the bills through e-mail, shall be entitled to send the snapshot of meter reading of its meter on its scheduled reading date through e-mail to Licensees for proper billing and can accordingly pay for the consumption (the difference between the previous reading and the present reading) during the billing cycle which shall be subject to adjustment in the next bill.

The consumer database is under compilation. Once

the same is completed, system will be put in place for

implementation of this directive

15 The Discoms shall endeavour that for consumers with compatible meters,

manual reading of the Meters should be stopped forthwith. The reading of all

such meters shall be taken through downloadable CMRI (Common Meter

Reading Instrument).

NIT is being floated for this purpose.

16 The AT&C losses as worked out above would be 25.94% against target of 24.48% in respect of UHBVNL and 22.48% against target of 18.74% in respect of DHBVNL. This means that there would be under achievement by both the licensees. As per UDAY, the collection efficiency has been pegged at 99%.

The distribution licensees are directed to explain the reason of under achievement even after re-fixing of their AT&C loss trajectory by the Ministry of Power Govt. of India.

With introduction of various initiatives like Loss

Reduction plan for urban areas and Mhara Gaon Jag

Mag Gaon in rural areas, Nigam endeavours to achieve

the loss trajectory projected under UDAY scheme in FY

2016-17.

Nov-16 Page 69


17 The Commission directs that the Discoms shall submit consumer category

wise FSA recovered viz-a-viz that recoverable as per Order dated 19.03.2015

within 15 days so that the same can be reviewed for continuation or

discontinuation. In an event the Discoms fail to submit the requisite

information/details all FSA(s) being recovered under the ibid Order(s) shall be

stopped.

The directives of the Hon’ble Commission are noted.

The detailed reply have been filed to HERC vide SE/RA

UHBVN Panchkula Memo no. Ch- 55 SE/RA/N/F-54

Vol-VI (A) dated 16.09.2016.

18 The Licensee(s) is directed to ensure that power is procured only from those

sources for which the Commission has approved PPA’s. Additionally, any

power from Central Generating Stations, beyond the quantum for which the

PPA has been signed and specifically approved by the Commission must be

surrendered in case the Discoms have to back down any approved long-term

source of power. It is made clear that any power procured from sources not

specifically approved by the Commission and/ or excess quantum vis-à-vis the

approved PPA purchased by the Discoms shall be disallowed by the

Commission.

The Commission directs that the Discoms shall not procure any additional

power over and above the quantum approved in the PPA that may be

available to it from the un-allocated share / share relinquished by any other

State in the Central Generating Power Stations. The Commission thereto shall

disallow all such power procurements and the cost thereto.

A) “The directive has been noted to ensure that power is to be procured from those sources for which commission has approved PPAs.

B) On the above directives, reference is invited to

CERC order dated 05.10.2015 in petition no.

310/MP/2014 of giving M/s Sasan power at par with

CPSUs which allow Haryana to schedule the cheapest

power from the UMPP projects, if the other

beneficiaries of the project relinquish the power. In

case, any URS power from these sources available, as

per the directives of ARR/HERC, Haryana Discoms are

denying to avail the cheapest power for the state, in

case it is available. However, System Operation/ HPPC

Nov-16 Page 70


The Discoms are directed to manage the UI drawls more efficiently and the

Commission may not approve the power purchase cost of such drawls at a

rate higher than the average cost of power purchase, any loss on account of

that shall be borne by the Discoms.

is not giving any consent for scheduling of costly

unallocated URS power from Central Generating

stations.

Reference is further invited on the directives for

surrendering of the costly power by relinquishing the

share from those projects. In Pragati power, the

efforts had been made by writing the DO letter’s by

then ACS/Power and MD/UHBVN for transfer of share

of Haryana to other needy state. In this context, the

generator i.e. Pragati Power had intimated that the

project share was sought by the then State

government at the time of inception and being the

bilateral contract there is no clause for any of the party

to move out from the contract in the life span of the

project.

C) A contract agreement has been entered into

with RECPDCL (a Govt. of India undertaking) for

providing software tool for load forecasting &

scheduling. On implementation of the above said

project, the power available to the Discoms will be

managed more efficiently & the U.I. charges shall be

curtailed.

Nov-16 Page 71


19 The Commission directs the licensee to explore the possibility of the

surrendering expensive long-term power that is in excess of its requirement.

In case the licensee is unable to sell its contracted power at the rate of its

energy cost, it is expected to back down the units to that extent so that the

loss on account of power purchase is minimised.

The directives of the Commission is noted, but it is

worth to mention that in exigencies where backing

down of the plants are not possible, HPPC carries out

the inter-state sale of power at the price prevailing at

Exchanges to offset the cost of power as the UI

prevailing rates are lesser than the IEX prices.

In respect of surrendering the costly power, the efforts

made by HPPC are as under:

1. Regarding NTPC, Aravali Power Jhajjar and Pragati Power, the request has been made to the quarter concerns to either reallocate the power to the needy state.

2. In Pragati power case, the govt of Delhi/Generator has intimated that there is no exit clause in the PPA and the project share was allocated on the request of Govt of Haryana. Hence Haryana is bound to off take the power from the said project. In respect of NTPC/other CPUSUs, it is submitted that until the allocation of GoI has not been revised the state is bound to pay the charges and off take the power as per merit order.

20 The Commission directs the Discoms to purchase renewable energy or RECs

to meet with the RPO targets set for the FY 2016-17 and also to make up for

the shortfall of RPO compliance carried forward for the previous years, on

actual basis. In view of Haryana Government’s mandate to promote RE energy

especially roof top solar and Waste to Energy, Discoms are directed to meet

the maximum RPO targets from these sources. The Commission, in its Order

dated 7.05.2015 for the FY 2015-16 had made specific provision of Rs. 1100

In FY 2015-16, HPPC has purchased the following

quantum of renewable power:

FY 2015-16

Target Actual achieved

Shortfall

Solar 350 MUs

127.21 MUs 293 MUs

Nov-16 Page 72


Crore in the power purchase cost towards purchase of RPO/REC, the same

shall be accordingly utilised in the FY 2016-17. The Discoms are directed to

submit details of the RE Energy and/or REC purchased by them against the

said amount within a period of three months from the date of this Order.

Non-solar

1285 MUs

1172 MUs 113 MUs

In order to meet the RPO targets for the FY 2016-17,

HPPC has taken the following steps:

Solar RPO:

1 HPPC has signed PPA with 4 Nos. developers for 23 MW solar power which are expected in FY 2016-17. The PPAs for the said projects have not yet been approved by HERC.

2 HPPC has issued LOI to 13 nos. developers selected through competitive bidding for purchase of 165 MW solar power. The PPAs for the said projects have not yet been approved by HERC.

3 HPPC has agreed to purchase 250 MW of solar power through SECI under JNNSM Scheme @ Rs. 4.50 per KWh for 25 years on VGF basis. This power is expected in FY 2017-18. The petition for approval of the same shall be filed shortly.

4 HPPC has given consent to purchase 553 MW of bundled power, 353 MW solar power and 200 MW thermal power) from NTPC, This power is expected in FY 2018-19. The petition for approval of the same shall be filed shortly.

Non-solar RPO:

i. HPPC has signed PPA with Naraingarh Sugar Mills for 25 MW capacities and 7 MW (2nd unit) with M/s GEMCO.

Nov-16 Page 73


The Discoms are directed to submit an action taken report in furtherance of

the latest solar policy issued by the State Government within three month of

this order.

ii. HPPC is purchasing hydro power from Himachal Pradesh in the range of 25-325 MW in the FY 2016-17.

iii. HPPC has submitted PPA for Waste to energy project, to be commissioned by ULBs. The same is under consideration with the Hon’ble Commission.

iv. HPPC has floated E-tender for purchase of 300 MUs of Non-solar power.

It is pertinent to point out that HPPC has filed a

petition in HERC seeking amendment in HERC

Regulation, 2010 on Renewable Energy in view of

Haryana Solar policy-2016. The hearing for the same

was held on 10.9.2016. However, HERC order is still

awaited.

21 The Commission directs that the interest on the consumer’s security deposit

must be paid to all consumers in compliance of the relevant Regulations

notified by Commission.

Sales Instructions No. 9/2016 has been issued on the

subject. In the ibid Sales Instructions directions have

been passed to field offices that the updated ACD of

the consumers is to be provided to the billing agencies

for incorporation in the consumer’s data base up to

31.12.2016 so that the procedure regarding interest

on ACD / revision of ACD is carried out through the

system. In case there is delay in the payment of

interest the interest paid on outstanding amount shall

be recovered from the delinquent officers / officials.

Nov-16 Page 74


22 Both the licensees are directed that they shall regulate their capital

expenditure plans for FY 2015-16 and FY 2016-17 as per Regulations 9.7 to

9.12 of the Haryana Electricity Regulatory Commission (Terms and Conditions

for Determination of Tariff for Generation, Transmission, Wheeling and


2012.

The Capital Expenditure details was filed by the

DHBVN vide its Tariff Petition on 15.12.2015 for the

FY 2016-17 and additional submission made in

25.05.2016, including some of the works which were

previously not approved by the Hon’ble HERC in its

MYT Tariff Order for the 1st Control Period FY 2014-

15 to 2016-17 vide order dated 29.05.2014. These

works were incorporated in Capital Investment Plan

for FY 2016-17 for successful implementation of

UDAY Scheme, which is a tri-partite agreement

between the Ministry of Power, Government of

Haryana and Haryana Discoms (DHBVN & UHBVN) and

as per system requirements.

Accordingly, DHBVN had filed the Capital

Investment Plan vide Tariff Petition dated

15.12.2015and additional submissions made on

25.05.2016 , for approval of the Hon’ble HERC , as

the UDAY Scheme was notified in FY 2015-16 and not

in initial year of Control Period and thus works

related to the UDAY Scheme were not approved

during the MYT Order dated 29.05.2014. Further, it is

submitted that DHBVN has tried to regulate the

Capital Expenditure of FY 2015-16 as per the Hon’ble

HERC Regulation, 2012.

Nov-16 Page 75


23

As stated above there are feeders, both urban and rural, on which the losses

are consistently above 50%, but the licensees have not bothered to get energy

audit of such feeders done and take suitable measures to curtail the same.

The Commission views this lapse on the part of licensees very seriously.

The Licensees are therefore, directed to file report on the status of losses on

each of these feeders and also prominently display them on their website.

They are further directed to file, within 3 months, detailed reasons for non-

compliance of the Commission’s directives. Failure to do so shall attract action

under Section 142 of the Electricity Act, 2003.

It is submitted that, various steps have been taken by

Nigam to reduce the Losses with the specific focus on

long term improvement in the power quality and

reliability. Various strategies are being adopted in

urban and rural areas based on their loss level. The

steps taken for reduction of technical and commercial

losses are as follows:-

High loss Feeder are being identified and the Sanitization work which is under progress is being monitored. All the Circle (Op) teams have been instructed to speed up in order to complete the pending work so that the loss level would be brought down to normative level.

Consumer Indexing for RAPDRP towns, non-RAPDRP towns, & rural areas is under progress which would help the Nigam to calculate the losses from the billing database and further pin point the losses incurred at DT level which will eventually help the Nigam optimize its resources and efforts towards effective loss reduction.

Feeder Sanitization Activities are carried out geographically as: (1) Urban Feeder Sanitization & (2) Mhara Gaon Jagmag Gaon Scheme for selected RDS feeders. In both the plans, Nigam has focused on the following four major activities:

o Improving accurate reading of energy meters via replacement of Defective, faulty, Burnt, Glass

Nov-16 Page 76


broken, no display, inconsistent, electromechanical, and old version meters.

o Minimizing occurrence of theft of energy via relocation of meters which are located inside the Consumer premises and are prone to theft of energy

o Preventive measures to eliminate direct theft of energy via replacing ACSR conductors, bare conductors present in the theft prone areas with LT AB Cables to eliminate direct theft of energy.

Releasing of New Connections: Unauthorized

colonies, connections with direct theft, pending

connections, un-electrified households are being

provided a new connection to bring them in to

billing net.

24 There are two Discoms and two other companies in addition to Haryana

Power Purchase Centre are having offices of the Chairman/MD’s and Board of

Directors with separate establishments, huge expenditure is incurred on these

establishments, which needs to be reviewed. Though, there is shortage of

Technical-staff to maintain & monitor the system while other establishments

(clerical & non-technical) seems to be over-staffed & needs to be restructured

which will lead to improvement in use of financial resources as well as

manpower. The Commission directs that the Discoms shall examine this issue

threadbare and taken action accordingly.

A total no. of 1963 posts of Class-III Non Technical are

lying vacant against sanctioned post of 3678.

The requisitions for a total of 761 Nos. post (28 Nos. of

UDC (HO), 202 Nos. of UDC (F), 11 Nos. LDC (HO) & 467

Nos. of LDC (F) have been sent for recruitment to HSSC,

Panchkula with the approval of State Govt. of Haryana

and recruitment is under process.

Further, a Merger Secretariat has been created under

the Chairmanship of Chief Financial Officer, HVPNL,

Panchkula. The purpose of Merger Secretariat is to

prepare initial draft of the merger scheme outlining

the objectives of the merger, basic principles of

merger of accounts of the companies, basic principle

Nov-16 Page 77


of absorbing the staff of DHBVNL in UHBVNL,

addressing the seniority issues, new staffing structure

of the merge entity etc.

25 Further in the neighbouring States mostly the functions of power sector are

being handled by two Companies whereas these functions are being

performed by four companies/Utilities in the State of Haryana which also

needs to be reviewed at the State level.

A Merger Secretariat has been created under the

Chairmanship of Chief Financial Officer, HVPNL,

Panchkula. The purpose of Merger Secretariat is to

prepare initial draft of the merger scheme outlining

the objectives of the merger, basic principles of

merger of accounts of the companies, basic principle

of absorbing the staff of DHBVNL in UHBVNL,

addressing the seniority issues, new staffing structure

of the merge entity etc.

26 As already directed in the previous orders on the ARR, the posts lying vacant

for more than two years (the period of two years preceding 15.02.2016),

whether newly created or old, should not be filled up without prior approval

of the Commission. However, this shall not be applicable to the posts for

which requisition has already been sent to the recruiting agency and for which

advertisements have been issued by them. The Commission in its Order dated

29th May, 2014 had given directions regarding abolition of non-technical post

lying vacant for more than three years. Discoms have not reported the

compliance of the orders dated 29th May, 2014, dated 7th May, 2015 as also

15th October, 2015. The status report be submitted within 45 days failing

which the expenditure on the above such posts shall not form part of ARR of

Discoms. The power utilities would strictly comply with the directions issued

In DHBVN, no regular recruitment has been made without the approval of State Govt. However, against sanctioned vacant post of Non-technical category 528 Nos. i.e. UDC, LDC, Peon, Mali, Sweeper & Chowkidar etc. have been engaged under Part-II of outsourcing policy to tackle the workload and run the offices smoothly. There are no such posts of non-technical category which are lying vacant continuously for the last two years in DHBVN. Moreover, the requisitions for a total of 761 Nos. post

(28 Nos. of UDC (HO), 202 Nos. of UDC (F), 11 No. LDC

(HO) & 467 Nos. of LDC (F) with the approval of State

Nov-16 Page 78


by the Haryana Government vide letter No.28/21/2012-5 B&C dated

11.2.2016 for parking of funds outside Government Accounts-Closing of Bank

Accounts and the letter No.5/6/2005-B&C dated 20.4.2016 regarding

incurring of expenditure under Plan/Non-Plan schemes.

Govt. of Haryana have been sent for recruitment to

HSSC, Panchkula and recruitment is under process.

A total of 380 No. posts of Chowkidar (160), Store

Attendant (90), Cleaner (15), Work-mate/T-Mate (15)

and Security Guard (100) have been approved for

abolition by the HBPE, Finance Deptt. of Haryana in

lieu of the approval for creation of 181 posts of IT

Cadre in DHBVN.

27 The Commission observed that the delayed payment surcharge for a

consumer paying his bill after one day delay or even after 30 days delay is the

same. Hence, such penalty needs to be levied in a graded manner accounting

for each days of delay. The Discoms are directed to formulate a proposal in

this regard within a month and submit the same for approval of the

Commission.

It is submitted that, the accounting of the surcharge is

levied in a graded manner for each day of delay is not

feasible due to unavailability of real time database at

the Nigam’s end. Moreover the option might lead to

increased number of consumer grievances.

28 In order to facilitate training to the Engineering Graduates of Haryana, the

Discoms may provide opportunity as trainee/apprentice to Haryana domicile

Engineering Graduates (B.Tech.) or diploma holders of Technical Education

and Industrial Training Department from the ITI from the recognized

Engineering Colleges / Institutions located in Haryana, after obtaining

necessary approval of the State Government, if required.

The Financial Implications involved in this case is being

examined by the Nigam.

29 It has been observed that sales circulars based on the Orders/Directives/

Regulations of the Commission, are being issued by the Discoms at times are

at variance with each other. Hence, it will be appropriate that such

sales/commercial circulars are issued for both the Distribution Licensees

uniformly and in consonance with each other.

A Special Commercial Committee of both the

Discoms comprising of following officers has been

constituted

1. CGM/Commercial, UHBVN, Panchkula.

2. FA/Hqr.

UHBVN, Panchkula.

Nov-16 Page 79


3. SE/Commercial,

UHBVN, Panchkula.

4. SE/Commercial,

DHBVN, Hisar.

5. XEN/Commercial (Billing)

UHBVN, Panchkula.

6. XEN/R-APDRP,

UHBVN, Panchkula.

The above Committee will hold meeting on

fortnightly basis and shall review the dynamic

changes in all business cases/tariffs/Circulars on

fortnightly basis and shall give their recommendations

for further implementation by all the billing agencies

in a time bound manner and get all the circulars

/Orders implemented also will clarify all the matters

related to the subject cited matter. All billing

agencies shall act as per the directions of this

Committee.

30 In order to improve the efficiency of the Legal Cell, the licencee(s) may

consider reinforcing its Legal Cell by appointing a working/Retd. Sessions

Judge to Head the Legal Cell.

To improve the efficiency of Legal Cell, one No. Retd.

Under Secy. / Legal has been engaged as Legal Advisor

in DHBVN on contractual basis to Monitor the day to

day work of Court Cases, Summons, Notices etc.

Further, to look after the court cases of DHBVN in the

office of L.R/ HPUs, Panchkula, two no. Legal Officers

have also been engaged on contractual basis under

outsourcing policy.

All the work of Legal matters and court cases is being

executed under the control of Legal

Nov-16 Page 80


Remembrancer/HPUs which works commonly for all

Haryana Power Utilities in HVPNL, Panchkula.

Further, a case of regular recruitment of 3 nos.

Assistant Law Officer under direct recruitment quota

through recruiting agency, is under process.

31 The Discoms are directed to analyse the consumption pattern of the

consumers for past one year and analyse the cases warranting load

enhancement. Notice be issued to such consumers for voluntary load

enhancement and to allow the security deposit in instalments. In case

consumers fails to avail the opportunity extended to such consumers, the

Discoms shall suo-moto extend the load and in such case consumers will have

to pay full security deposit.

The requisite instructions in this regard is under

preparation

32 The Discoms are directed to issue a request to AP Consumers whose annual

income other than agriculture is more than Rs.20.00 lacs for voluntarily giving

up of their agriculture subsidy on electricity. Discoms are advised to give wide

publicity to this campaign on Electricity Bills as well as through local electronic

media, on the pattern of Govt. of India Jan Dhan Aadhar Mobile Yojna

campaign of ‘Give it up LPG subsidy’.

The wide publicity of request to AP consumers having

income more than 20 lakhs for Giving up agriculture

subsidy on electricity shall be made by mentioning it

on the electricity bills to be delivered to the

Agriculture consumers. However the possibility of

developing an App for voluntarily giving up the

agriculture subsidy on electricity by the agriculture

consumers on the pattern of Govt of India Jan Dhan

Aadhar Yojna campaign of Give it up LPG subsidy is

being examined by the Nigam.

33 The Commission directs that if there are still some LT Consumers without

kVAh meter. The same should be installed immediately to avoid any

inconvenience to such consumers. Till such time the billing shall be on kWh

basis after adjusting the kVAh tariff by applying the standard power factor i.e.

0.9.

The LT Industrial consumer having meters without

kVAh facility have been identified by the Nigam and

there meters are in a process of replacement.

However the billing of these consumer is being done

Nov-16 Page 81


on kVAh tariff by applying the standards power factor

of 0.9 as desired by the Hon’ble Commission.

Nov-16 Page 82



BEFORE THE H ELECTRICITY REGULATORY...

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