TARIFF ORDER OF THE WEST BENGAL ELECTRICITY … · newspapers of which one will be in either Ananda...

TARIFF ORDER

OF THE

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

IN

CASE NO: TP – 35 / 07 - 08

IN RE THE TARIFF PETITION OF WEST BENGAL

STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED

UNDER SECTION 64(3)(a)

READ WITH SECTION 62(1) AND SECTION 62(3)

OF THE ELECTRICITY ACT, 2003

FOR THE YEAR 2007 – 2008

DATE: 01.08.2007

Tariff Order of WBSEDCL for the year 2007 – 2008

CHAPTER - 1INTRODUCTION

West Bengal Electricity Regulatory Commission 2

1.1 The West Bengal State Electricity Regulatory Commission (referred to as the

Commission hereinafter) was constituted by the State Government of West

Bengal in 1999 in pursuance of the Provisions of Section 17 of the Electricity

Regulatory Commissions Act, 1998. The latter, along with the Indian Electricity

Act, 1910 and the Electricity (Supply) Act, 1948 was repealed by dint of Section

185 of the Electricity Act, 2003, (referred to as the Act hereafter) which came into

force with effect from 10th June 2003. The first proviso of Section 82(1) of the

Electricity Act, 2003 has ensured continuity of the Commission – along with that

of all other State Electricity Regulatory Commissions – by laying down that the

State Electricity Regulatory Commissions established by a State Government

under Section 17 of the Electricity Regulatory Commissions Act, 1998 (and a few

other State enactments), and functioning as such immediately before the

appointed date, shall be the State Commissions for the purposes of the

Electricity Act,2003.

1.2 The functions of a State Commission have been specified in Section 86 of the

Electricity Act, 2003. One of the main functions of a State Commission relates to

determination of tariff for generation, supply, transmission and wheeling of

electricity, wholesale, bulk or retail, as the case may be, within a State. Further,

Section 62(1) of the Act also requires the appropriate Commission to determine

the tariff in accordance with the provisions of the Act, for supply of electricity by a

generating company to a distribution Licensee, for transmission, for wheeling as

also for retail sale of electricity.

Tariff Order of WBSEDCL for the year 2007 - 2008


1.3 The Commission has, therefore, all the powers and authority under the Electricity

Act, 2003 to determine the tariff, as laid down in the Act, and these powers and

authority are in continuation of similar powers and authority that were enjoyed by

the Commission under Section 29 of the Electricity Regulatory Commissions Act,

1998.

1.4 The West Bengal State Electricity Board, a State Electricity Board constituted

under Section 5 of the Electricity (Supply) Act 1948 after being reorganized in

terms of Section 131 of the Electricity Act, 2003 has been replaced by (i) West

Bengal State Electricity Transmission Company Limited and (ii) West Bengal

State Electricity Distribution Company Limited w.e.f 1.4.2007 in accordance with

a transfer scheme viz., West Bengal Power Sector Reforms Transfer Scheme

2007 notified by Govt. of W.B vide No.12-PO/O/III/3R-29/2006 dated 25.1.2007.

Whereas the functions and business in transmission activities and load despatch

activities have been transferred to and vested in West Bengal State Electricity

Transmission Company Limited (hereinafter referred to as WBSETCL), the

functions and business in distribution activities and activities related to hydro

undertakings have been transferred to and vested in West Bengal State

Electricity Distribution Company Limited (hereinafter referred to as WBSEDCL).

Both WBSETCL and WBSEDCL are deemed to be licensee under the Electricity

Act, 2003 in terms of fifth proviso to Section 14 of the Act and the area of

operation for both WBSETCL and WBSEDCL covers the whole State of West

Bengal excepting those areas of operation that are covered by other licensees.

In exercise of powers conferred under Sub-section 1 of Section 39, the Govt. of

W.B has notified and authorised vide No.89-PO/O/III/3R-5/2007 dated 26.3.2007

West Bengal State Electricity Transmission Company Limited to function as

State Transmission Utility w.e.f 1.4.2007.



1.5 The Commission had determined the annual tariff in favour of West Bengal State

Electricity Board for seven consecutive years starting from 2000-01. The tariff

petition for the year 2007-08 on the basis of multi year framework in terms of

West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2007 has now been submitted by West Bengal State Electricity

Distribution Company Limited, one of the successor entities of West Bengal

State Electricity Board. The petition is for determining the tariff for wheeling and

retail sale of electricity for one year control period under multi year tariff

framework.

1.6 It has been stipulated in clause 2.5.2 of the WBERC (Terms & Conditions of

Tariff) Regulation 2007 that for first control period, filing of petition for tariff may

be made 7 days before the commencement of the control period. In view of the

fact that the successor Distribution Company of WBSEB came into existence

from 1.4.2007, it was appealed by the petitioner that they may be allowed 30

days of additional time from the date of commencement of the control period,

the date of commencement of control period being 1.4.2007. The Commission

allowed 15 days of additional time to WBSEDCL for filing its tariff petition

meaning thereby that the tariff petition of WBSEDCL shall be submitted to the

Commission by 16.4.2007 (15.4.2007 being a holiday). WBSEDCL vide their

letter No.C/DIR/COM/TARIFF/87/34 dated 16.4.2007 appealed for a further

extension of time for seven days in view of the time required by them in

segregating the cost of different elements between WBSETCL & WBSEDCL.

The Commission accepted the appeal and allowed WBSEDCL to submit the

Tariff Petition by 23.4.2007. Accordingly, the Commission has proceeded to

admit the tariff petition of WBSEDCL on 25.4.2007 which was submitted to the

Commission on 23.4.2007. The Commission, however, takes this opportunity

to advise the petitioner that this additional time has been allowed to prepare the



tariff petition subsequent to the formation of WBSEDCL on 1.4.2007 only for the

year 2007-08 and should not be taken as a precedence by WBSEDCL or any

other licensee for future years.

1.7 The tariff petition in question admitted by the Commission was marked as

No.TP-35 / 07-08. After admission of the same WBSEDCL was directed to

publish the gist of the tariff petition as approved by the Commission in

newspapers of which one will be in either Ananda Bazar Patrika or Bartaman,

one in either The Statesman or The Telegraph, one in a Hindi daily with

substantial readership in the State and one in an English daily with all India

readership (preferably The Economic Times or the Business Standard).

Accordingly, the gist of the petition was published simultaneously in Ananda

Bazar Patrika, The Telegraph, Sanmarg, Business Standard, Aajkal and

Bartaman on 1.5.2007.

1.8 While publishing the gist of the tariff petition, the insertions in the newspapers

called upon all interested parties and members of the public to file objections or

make comments on the petition. They were also afforded opportunities for

inspection of the petition and take copies of the same in terms of the relevant

provisions of the WBERC (Conduct of Business) Regulations, 2007.

1.9 Objections to / comments on the tariff petition, in question, received by the

Commission within the stipulated period i.e., 1.6.2007 have been described in

short in Chapter – 3.


CHAPTER - 2THE CASE OF WBSEDCL


2.1 West Bengal State Electricity Distribution Company Limited (WBSEDCL)

in its tariff petition has claimed that the aggregated assets and liabilities

in WBSEDCL in terms of “West Bengal Power Sector Reforms Transfer

Scheme 2007” as notified by the Govt. of W.B has been considered for

estimating expenditures under different heads.

2.2 WBSEDCL has further claimed that the said assets and liabilities were

prepared as per the balance-sheet of West Bengal State Electricity Board

as on 31.3.2006. After adjusting the transactions during the year 2006-

07 the balance-sheet has been stated by the petitioner to have been

recast as on 31.03.2007 to arrive at the opening balance for the year

2007-08.

2.3 According to the petitioner total equity of WBSEDCL is Rs.1942.00 crore

as per the balance-sheet of erstwhile West Bengal State Electricity Board

as on 31.03.2006. The petitioner has further claimed that actual equity of

Rs.428.97 crore was added during the year 2006-07. Additional equity of

Rs.906.97 crore has been projected by the petitioner for the year 2007-

08. Average equity base computed by the petitioner for ARR for 2007-08

is Rs.2796.31 crore. A return on equity of Rs.391.48 has been claimed

by WBSEDCL in the revenue requirement for the year 2007-08.

2.4 The petitioner has claimed to have attempted to reduce the cross-

subsidies and rationalize the tariff for various classes of consumers in

line with 61(g) of the Electricity Act, 2003.



2.5 The petitioner has claimed that metering upto 11 KV feeder had already

been completed and the metering of distribution transformer has been

taken up in a few circles. With the help of 100% feeder metering

endeavour is being made to reduce the ATC loss.

2.6 The petitioner has claimed that 100% metering for agricultural consumers

was in progress and metering in respect of 24000 nos. agricultural

consumers has already been completed upto February, 2007. The

petitioner has further claimed that from April, 2007 onwards revenue will

be realized on the basis of recorded consumption from these agricultural

consumers.

As claimed, the remaining agricultural consumers of the petitioner will

also be brought under metered supply within April, 2008 and AT & C loss

will get substantially reduced during the year 2007-08.

2.7 The petitioner has claimed that in accordance with restructuring plan for

State owned utilities of West Bengal the AT & C loss of the petitioner will

be steadily brought down within seven years from 36% to 24% in 2012,

while collection efficiency shall improve from 91% to 97% during the

same period.

2.8 The petitioner has claimed to have already strengthened security & loss

prevention wing and decentralised these activities upto circle levels.

Besides Corporate Wing and seventeen units at circle level, one unit has

been claimed to have been created at Asansol in 2006-07.



2.9 High Voltage Distribution Supply (HVDS) has been claimed to have

already been introduced for irrigation / agricultural consumers directly

from distribution substation through L.T P.V.C cable. It has been claimed

by the petitioner that such distribution substation of capacity of 10 KVA,

11/0.4 KV are being used to give supply to two nos. of S.T.W consumers.

Similar scheme which is also being adopted for rural electrification will

substantially reduce both technical & commercial loss.

2.10 To facilitate energy audit, mapping and documentation of entire power

network of WBSEDCL with reference to geographical location including

attributes of the attached equipment in the power network, Geographical

Information System (GIS) has been claimed by the petitioner to be under

progress in respect of total 232 nos. of supply stations of WBSEDCL and

substantial progress in the said work is stated to have been made in

2006-07.

It has been claimed that after the completion of network documentation,

application software CYMDIST available with the petitioner would be

utilised to compute energy loss and the 33 KV & 11 KV network would be

planned on the basis of load flow studies with the help of this software to

reduce technical losses.

2.11 It has been claimed by the petitioner that spot billing facility for all

category of L & MV consumers has been introduced as a pilot project for

Garia Electric Supply, Dasnagar Electric Supply and Chandannagar

Electric Supply. The petitioner expects to extend the facility gradually to



other Electric Supplies of WBSEDCL which will further reduce the total

time for meter reading, preparation of bill & serving of bill.

2.12 In line with the restructuring plan for state-owned power utilities of West

Bengal notified by the Govt. of W.B in September, 2006, 24.7% T&D loss

has been considered by the petitioner to arrive at the estimated energy

requirement for 2007-08. Based on the above facts distribution loss for

WBSEDCL has been computed by the petitioner at 20.34%.

2.13 In view of the revocation of the distribution licence of Singur Haripal Rural

Electric Cooperative Society Ltd. (SHRELCOP) by the West Bengal

Electricity Regulatory Commission in terms of Section 19(2) of the

Electricity Act, 2003 w.e.f 31.12.2005 and in view of the appointment of

WBSEB as the administrator of the SHRELCOP utility, WBSEDCL, being

the successor entity of WBSEB in distribution business, is acting as an

administrator of the SHRELCOP utility from 1.4.2007.

The petitioner has claimed that while projecting total energy requirement,

consumption of different categories of consumers of SHRELCOP has

been clubbed in the projected consumption of WBSEDCL for the

respective categories.

2.14 The petitioner has claimed that due to the implementation of the crash

programme for rural electrification in line with the guidelines contained in

National Electricity Policy, additional one lakh new domestic consumers

would be connected in rural area during the year 2007-08.



2.15 Consumption under different categories of consumers during the year

2007-08 has been claimed by the petitioner to have been estimated from

the trend in growth of consumption during the last three years for the

respective categories. Accordingly, 6082 MU has been projected to be

consumed by the consumers under L & MV category whereas the

consumption under HV & EHV category has been projected as 5730 MU.

Total sale of energy to own consumers of WBSEDCL thus has been

projected as 12,896 MU during the year 2007-08. Thus with 24.7% T&D

loss, 4242.02 MU has been projected as T&D loss for the year 2007-08.

Taking into consideration the energy utilized in own premises of the

petitioner and the loss for wheeling of power through other licensee’s

network, total energy requirement for the supply to its own consumers has

been projected by the petitioner as 17178.76 MU.

2.16 The petitioner has projected sale of energy to other licensees like, CESC,

DPSCL at the level of 945 MU during the period.

2.17 In terms of an agreement signed between the Govt. of W.B and Govt. of

Sikkim, the petitioner has claimed that 80 MU of energy being 20% of the

sent out generation from Rammam Hydel Station Stage-II would be

supplied to Sikkim at sent out cost of generation of the said power station.

2.18 Sale of incidental surplus energy to others has been estimated by the

petitioner at 5075 MU in the year 2007-08 taking into account additional

surplus energy to be made available from the new projects after meeting

requirement of own consumers, other licensees, Govt. of Sikkim and

considering energy requirement of 1130 MU during pumping mode of



Purulia Pump Storage Project. With the claimed T&D loss of 24.7% in the

system, WBSEDCL has computed its overall gross energy in its own

system to be 24485.17 MU.

2.19 In terms of West Bengal Power Sector Reforms Transfer Scheme 2007,

all the existing hydel power stations, all gas turbine units and diesel

generation units with all associated equipments of WBSEB have been

transferred to WBSEDCL from 1.4.2007. The Purulia Pump Storage

Project (PPSP) has also been transferred to WBSEDCL from 1.4.2007.

2.20 Gross generation projected to be available from the hydel power stations

of the petitioner has been projected to be 487 MU operating at average

L.F of 35%. Low generation at TCF hydel power station has been

attributed by the petitioner to the constraints stated to be due to non-

completion of Dauknagar main canal by I & W Deptt. A gross generation

of 860 MU has been projected by WBSEDCL for the year 2007-08 from

PPSP. It has been mentioned by the petitioner that the energy

requirement at the bus bar of PPSP for pumping mode operation will be

1130 MU during the year. No generation has been envisaged from the

gas turbine and no cost for this station has been stated to have been

considered by the petitioner for the year 2007-08. WBSEDCL is

maintaining only one diesel generation plant at Rudranagar in Sagar

Island. In view of the excessive cost associated with the diesel

generation, generation from this plant has been stated to have been

restricted and supplemented by energy from non-conventional sources.

Generation from diesel power station at Rudranagar has been projected

during the year 2007-08 at 0.64 MU.



2.21 Total gross generation from own hydel sources, PPSP, diesel etc. has

been projected by WBSEDCL to be 1347.64 MU for the year 2007-08.

Considering 10 MU of auxiliary consumption and 4 MU of transformation

loss net sent out energy from own generation sources has been projected

at 1333.64 MU during the year.

2.22 To discharge the functions of a distribution licensee as a successor entity

of WBSEB the petitioner has committed to continue with the purchase of

power in the same manner as was being done by erstwhile WBSEB.

Power purchases have been proposed by the petitioner from West Bengal

Power Development Corporation Ltd. (WBPDCL), Durgapur Projects Ltd.

(DPL), DPSCL, DVC, NTPC, NHPC, The Power Trading Corporation

(PTC), Tala Hydro-electric Power. WBSEDCL also proposes to

purchase green power during the year from West Bengal Renewable

Energy Development Agency (WBREDA) and from a few non-

conventional energy sources & co-generation sources developed by

private entrepreneurs.

2.23 Total gross energy purchased from all the above sources including 643

MU of energy purchased on radial basis from DVC at 33 KV and below,

153 MU of energy purchased from DPL at 33 KV and below, 160 MU of

energy purchased from DPSCL, green energy from WBREDA and co-

generation sources has been projected by the petitioner to be 23359.52

MU. With the grid loss of 208 MU in the transmission system of

transmission licensee WBSETCL the net purchase has been projected for

the year 2007-08 to be 23151.52 MU.



2.24 With net generation of 1333.64 MU and net purchase of 23151.52 MU,

WBSEDCL claims to be able to meet its gross energy requirement of

24485.17 MU of 2007-08 including the losses in its own system.

2.25 The petitioner has projected Rs.4201.04 crore for total purchase cost of

energy for the year 2007-08 out of which Rs.81.13 crore has been

projected for purchase of infirm power from Sagardighi Thermal Power

Station and Units IV & V of Bakreshwar Thermal Power Station of

WBPDCL.

2.26 Transmission charges payable to WBSETCL for the energy required to be

transmitted by the petitioner through WBSETCL system has been

projected as Rs.409.61 crore while the payable handling charges @ 2%

on transmission charges amounting to Rs.8.19 crore has been

considered.

2.27 An amount of Rs.369.54 crore has been projected as employees cost

after capitalization for the year 2007-08. WBSEDCL has justified their

existing staff strength of 21109 as on 1.4.2007 to provide service to their

consumers spread over the whole State mostly in rural and remote areas.

The petitioner has further committed that the staff strength will be reduced

to 20707 as assessed at the end of the financial year 2007-08 through

general separation.

2.28 The petitioner has further claimed that the element of D.A has been

considered as per order of Govt. of W.B issued from time to time in the



year 2006-07. The recent government order for merger of 50% of the D.A

with the basic pay of the employees w.e.f 1.4.2007 has also stated to

have been considered. It has been mentioned by the petitioner that any

further rise in D.A during 2007-08 if announced by the State Government

would be additional expenditure. The petitioner has further stated that

O.T allowance is allowed only to the technical staff engaged to attend

emergency breakdown beyond normal hours pointing out that

disallowance of such payment would severely affect the quality of

services.

2.29 The petitioner has projected repair & maintenance cost including

consumables for the year 2007-08 to be Rs.94.48 crore. The petitioner

has claimed that in order to deliver power at reasonable quality

parameters and to reduce instances of outage APDRP scheme in

distribution is under implementation. It has been confirmed by the

petitioner that in the year 2006-07 distribution assets of Rs.346.33 crore

has been added from the fund of REDC and RGGVY while distribution

assets of Rs.136.63 crore has been added from WBSEB’s own fund in

the year 2006-07. For the year 2007-08 WBSEDCL is stated to add

distribution assets of the order of Rs.690.00 crore from the fund of REDC

and RGGVY while distribution assets of Rs.216.94 is expected to be

added from the petitioner’s own fund. Considering the increased assets

of distribution the petitioner has claimed additional R & M expenses

during the year 2007-08 and has thus tried to justify the projected R & M

expenses of Rs.94.49 crore in the year.

2.30 The petitioner has claimed that due to increased activities of consumer

services, revenue monitoring, drive against theft of power etc. there would



be increase in administration and general expenses towards training and

legal expenses, traveling expenses including vehicle hire charges etc.

The petitioner has projected Rs.75.14 crore during the year 2007-08 to

meet administration and general expenses including rent, rates & taxes,

legal charges and auditor fees after capitalization.

2.31 While calculating the aggregate revenue requirement bad debts

amounting to Rs.4.30 crore has been considered by the petitioner. The

petitioner has appealed to allow the aforesaid amount because in the

latest audited accounts of WBSEB for the year 2005-06 written off amount

on account of bad debt has been shown as Rs.4.30 crore which is lower

than 0.5% of the value of gross fixed assets at the beginning of the year

2007-08 which has been stipulated in the para 4.10.1 of WBERC (Terms

& Conditions of Tariff) Regulation, 2007.

2.32 The petitioner has claimed that the cost of depreciation of assets of

WBSEDCL which would be in service during 2007-08 has been computed

annually on the basis of straight line method at rates prescribed in

WBERC (Terms & Conditions of Tariff) Regulation, 2007 upto a maximum

of 90% of the original cost of the assets. The depreciation has been

projected for the year 2007-08 as Rs.217.61 crore.

2.33 Net interest after capitalization has been projected by the petitioner for the

year 2007-08 at Rs.148.73 crore while other finance charges (net of

capitalization) has been projected to be Rs.21.87 crore.



Interest for 2007-08 on bond for creation of pension fund has been

projected by the petitioner as Rs.130.05 crore.

2.34 The petitioner has included a sum of Rs. 70.60 crore in the revenue

requirement for 2007-08 as interest on working capital stated to be

calculated on normative basis @ 18% on estimated annual sale revenue

reduced by the amount of depreciation, deferred revenue expenditure &

RoE.

2.35 Interest on consumer security deposit has been projected for the year

2007-08 to be Rs.36.81 crore.

2.36 The petitioner has claimed that a sum of Rs.11.50 crore has been

included in the revenue requirement for 2007-08 in terms of WBERC

(Terms & Conditions of Tariff) Regulation, 2007 for allowing a reserve for

dealing with unforeseen exigencies and has been computed @ 0.25% of

the value of gross fixed assets at the beginning of the year.

2.37 Singur Haripal Rural Electric Cooperative (SHRELCOP) erstwhile

licensee under the Electricity Act, 2003 had been operating in Singur and

Haripal in Hooghly district. The petitioner has claimed that due to

difference in the selling price of WBSEB to SHRELCOP and the power

purchase price of SHRELCOP from West Bengal State Electricity Board

in the respective tariff orders of the two utilities for the years 2003-04,

2004-05 and 2005-06 an amount of Rs.22.73 crore was realised less by

erstwhile WBSEB. WBSEDCL has considered the aforesaid amount in



the revenue requirement under special appropriation head in the tariff

petition of the petitioner for the year 2007-08.

2.38 The petitioner has claimed that WBSEDCL as the administrator of

SHRELCOP has considered Rs.4.96 crore in the revenue requirement

under special appropriation head as expenses of SHRELCOP in their

tariff petition for the year 2007-08. It has also been claimed by the

petitioner that the revenue income from the consumers of Singur Haripal

area has been considered in the revenue income of WBSEDCL.

2.39 In the tariff petition WBSEDCL has drawn the attention of the Commission

to Rs.372.98 crore withheld by the Commission from the revenue

requirement of WBSEB in the tariff order of 2004-05 for non-submission

of full documents, information, data etc. etc. On being satisfied that the

WBSEB had started taking adequate steps to furnish the information,

documents, data etc. etc. the Commission released Rs.124.33 crore i.e.,1/3

rd of the with-held amount while passing the tariff order for 2006-07 in

respect of erstwhile WBSEB. In the tariff petition of 2007-08 the petitioner

has claimed 1/5th of the balance with-held amount being Rs.49.73 crore in

the revenue requirement under special appropriation head.

2.40 The petitioner has drawn the attention of the Commission to the amount

of Rs.637.96 crore deducted from the revenue requirement from 2004-05

towards excess interest allowed in the earlier years on the basis of Govt.

order dated 9.10.2002 reducing the interest rate to 2% w.e.f 2001-02.

The petitioner has claimed that the aforesaid Govt. order dated 9.10.2002

was subsequently withdrawn restoring the rates at which the loans were



originally sanctioned. Accordingly, Rs.637.96 crore deducted by the

Commission from the revenue requirement has now been claimed by the

petitioner to be refundable to WBSEDCL. In order to avoid tariff shock

5% of the deducted amount i.e., Rs.31.85 crore has been claimed by the

petitioner in the revenue requirement of 2007-08 under special

appropriation head.

2.41 The petitioner has claimed Rs.391.48 crore in the revenue requirement as

Return on Equity being 14% of average equity base of Rs.2796.31 crore

for the year 2007-08 considered for ARR. The average equity base of

Rs.2796.31 crore has been claimed to have been arrived at from the total

equity of WBSEDCL amounting to Rs.1942 crore as per the balance-

sheet of WBSEB as on 31.03.2006 in terms of West Bengal Power

Reforms Transfer Scheme, actual equity of Rs.428.97 added during the

year 2006-07 and the equity of Rs.906.97 crore projected for the year

2007-08.

2.42 Considering all the aforesaid expenditures the petitioner has claimed in

their tariff petition a total expenditure of Rs.6303.02 crore for the year

2007-08 to be recovered through tariff after due consideration to

deduction for additional income and revenue expected during the year.

2.43 Non-tariff income comprising of meter & service line rentals, meter box

charges, wheeling charges, reconnection & disconnection fees, delayed

payment surcharge, interest, investment income and other misc. charges

including fuse call charges, recoveries of theft of power etc. a total sum of

Rs.168.05 crore has been projected by the petitioner for 2007-08. This



includes revised rentals of Rs.100.36 crore and Rs.15.99 crore from

delayed payment surcharge projected to be collected during the year.

2.44 The petitioner has estimated that sale to CESC Ltd. during the year 2007-

08 would be 900 MU which will include sufficient quantum of peak power

largely sourced from Purulia Pump Storage Project. PPSP energy cost

being higher, the petitioner has assumed a higher rate for sale of power to

CESC Ltd. at a level of 270 p/kwh and the corresponding revenue for the

year 2007-08 from sale to CESC Ltd. has been projected at Rs.243 crore.

2.45 The petitioner has estimated a sale of 45 MU of energy to DPSCL. The

petitioner has stated that WBSEDCL is purchasing energy from DPSCL

@ 330 p/kwh and has proposed to sell to DPSCL at Bankhola at the

same rate and the corresponding revenue earning has been estimated at

Rs.14.85 crore for 2007-08.

2.46 During the year WBSEDCL has proposed to earn a revenue of Rs.13.52

crore from sale of power to Govt. of Sikkim at the rate of 169 p/kwh.

2.47 The petitioner has proposed to pass on 90% of the benefits earned from

the sale of 5075 MU of surplus energy to persons other than licensee or

any other consumer. Out of total sale value of Rs.1766.1 crore for this

energy @ 348 p/kwh the petitioner has computed such benefit for passing

on to the consumer during the year 2007-08 to be Rs.760.68 crore, while

the balance expenses attributable for such sale has been projected by the

petitioner to be Rs.920.90 crore during the year.



2.48 Showing the total calculated expenditure of Rs.6303.02 crore and

considering aforesaid deductions due to revenue earned from other

income, bulk supply & supply to Sikkim, taking into account the benefits

passed on to the consumers and expenses attributable to export, AR

required for sale of energy to its own consumers has been projected by

the petitioner to be Rs.4182.02 crore for the year 2007-08.

2.49 With projected revenue requirement of Rs.4182.02 crore expected by the

petitioner from sale of 12896 MU of energy to its consumers the average

cost of supply per unit has been computed by the petitioner to be 324.29

p/kwh.

2.50 Higher cost of supply than the average cost which was allowed by the

Commission for the previous year (2006-07) is stated by the petitioner to

be due to the additional expenditure of Rs.77.16 crore to meet the

requirement of its own consumers for the year 2007-08.


CHAPTER - 3OBJECTIONS AND SUGGESTIONS


Objections against the Tariff Petition of West Bengal State ElectricityDistribution Company Ltd (2007-2008)

3.1 As per the direction of the Commission, West Bengal State Electricity Distribution

Company Ltd. (WBSEDCL) published a gist of the tariff petit ion filed by the said

company calling upon all interested parties and members of the public to file

objections or make comments on the petition. The gist of petition was published

simultaneously in Ananda Bazar Patrika, The Telegraph, Sanmarg, Business

Standard, Aajkal and Bartaman. The intending objectors to the gist of the tariff

petition were also afforded opportunities for inspection of the petition and take

copies of the same in terms of the relevant provisions of WBERC (Conduct of

Business) Regulations, 2007. In response to the notifications, the Commission

received written objections to and comments on the tariff petition of WBSEDCL

from the following objectors within the stipulated period.

1. Micro & Small Scale Enterprises & Textiles Department, Govt. of W.B.

2. Singur-Haripal Rural Electric Co-operative Society Ltd.

3. Akbar Ali Mandal of Bohalipota & 306 similar objections submitted by

ABECA, North 24 Parganas.

4. Sree Nripendra Nath Chakraborty & 34 others.

5. CESC Ltd.

6. Reliance Communication.

7. Indian Tea Association & 6 others.

8. Hotel and Restaurant Association of Eastern India.



9. Tapan Kumar Maji

10. Eastern Railway.

11. Chinmoy Saha & 1537 others submitted by ABECA, 27A Dhiren Dhar

Sarani.

12. Jaya Shree Textiles, A unit of Aditya Birla Nuva Limited.

13. Eastern India Textiles Mills’ Association.

14. All Bengal Electricity Consumers Association.

15. West Bengal Cold Storage Association.

16. Hooghly Chamber of Commerce.

17. Sri Vasavi Industries.

18. South Eastern Railway.

19. Dhanapati Basak & 178 others submitted by ABECA, 27A Dhiren Dhar

Sarani, Kolkata-12.

20. Bharat Chamber of Commerce.

3.2 The Principal Secretary, Micro & Small Scale Enterprises & Textiles Department,

Govt. of W.B., has pointed out that the consumer category of “Cottage industry

artisan / weavers / small production oriented establishment not run by electricity

as motive power” as mentioned in the Annexure C-1 of the WBERC (Terms &

Conditions of Tariff) Regulation, 2007 does not appear in the petition filed by

WBSEDCL. The objector has further appealed to provide the tariff for the above

category of consumers who are handloom weavers having upto 4 looms in their

houses in place of existing provision of “handloom weavers having 2 looms in

their houses and artisans not using electricity for their production purpose and

not displaying any hoarding”.



3.3 Singur-Haripal Rural Electric Co-operative Society Ltd. has appealed for a

modified projected amount of Rs.265 lakhs against employees cost and Rs.36

lakhs as interest charges for 2007-08, thus, increasing the requirement on these

sub-heads of the Co-operative Society submitted in the tariff petition by

WBSEDCL as the administrator of SHRELCOP. The objector has also submitted

a proposal for capital investment of Rs.8.50 crore for improvement of the existing

power supply system, converting un-metered supply into metered supply,

installation of 11 KV capacitors for the feeders, for infrastructural development

and towards the expenditure for survey and mapping of the assets of the Co-

operative Society. The Co-operative Society has tried to justify the above capital

investment because of the stated reason that there was no scope for these

activities since 1.1.2006.

3.4 Printed objections with same contents signed by 2023 numbers of individual

objectors have been forwarded by ABECA from various parts of the State in 3

separate lots. Exactly similar printed objections with same contents have been

received from Shri Nripendra Nath Chakraborty & 34 other individuals while one

individual consumer, Sri Tapan Kumar Maji has sent the same printed objection

directly to the Commission with only difference that the typing error of point no.11

of other similar applications forwarded by ABECA has not been corrected by

aforesaid Sri Maji, Sri Chakraborty & 34 others. The objectors have made

certain general remarks against the tariff proposal of WBSEDCL. The objectors

have appealed not to allow recovery of withheld amount of Rs.31.06 crore stated

to be due to difference in rate of interest, Rs.49.73 crore stated to be due to non-

submission of full information during the period from 2003 to 2005 and also the

amount of Rs.4.96 crore for supply to Singur-Haripal Rural Electric Co-operative

Society Ltd. They have further demanded punishment to the licensee for their

lapses on these accounts. The objectors have in general blamed the policy of



elimination of cross-subsidy which in the opinion of the objectors have caused

higher tariff for small domestic and commercial consumers, public lighting etc.

and have raised the fixed charge for small industries. These objectors have also

expressed that un-metered supply to the agricultural consumers should be

continued. They have at the same time demanded that the annual payable

charges by the consumers for the un-metered supply should be reduced both for

shallow tube-wells and submersible pumps. The objectors have further

demanded that the metered supply to the agricultural consumers should be made

@ 50 paise / unit. The objectors have opined that T&D loss of WBSEDCL should

not be allowed above 18%. They have demanded that the consumers with

consumption of 30 units / month should be allowed a tariff at a rate of 50%.

These objectors have also demanded that the right of purchasing the meter by

the consumers should be implemented and for the industrial consumers the

meter rent should be reduced from Rs.100/- per month to Rs.45/- per month.

The objectors have also appealed for abolition of fixed charge for small industry

and have expressed their to desire examine the account of the money collected

by the licensee as penalty stated to be against false charges of theft of electricity.

These objectors have also demanded implementation of the policy of Open

Access immediately.

3.5 CESC Ltd. In their objection to WBSEDCL’s tariff petition has pointed out that

57% of CESC’s consumers consume belong to a consumption level of 49 units

per month and any rise in the tariff chargeable by WBSEDCL to CESC Ltd. will

have adverse impact on these small consumers. CESC Ltd. has appealed not to

increase the tariff of WBSEDCL for supply to CESC Ltd. above the existing 250

paise / unit as fixed by the Commission for the year 2006-07.



3.6 Reliance Communication has appealed for conversion from commercial to

industrial category for the IT & ITEs being provided by them to meet the State

Government’s requirement of e-governance and for Panchayet and

Municipalities. The objectors have also objected against the proposed rise in

energy charge under A(Cm-R) and A(cm-U) which are presently being applied for

these consumers..

3.7 Indian Tea Association along with several other Planters’ associations have

raised objection against the charging of Demand Charges throughout the year for

Tea Industry which they opine to be seasonal industry and have demanded

appropriate facility to declare contract demand separately for the production

season and off season. The objectors have raised objection against separate

supply point for electricity supply for irrigation and factory in the tea gardens and

charging of demand charges separately. The objectors have also appealed for

determination of exact cost of supply at different voltages and determination of

relevant quantum of cross-subsidy imposed with clear indication of reduction of

cross-subsidy. The Associations have appealed to consider appropriate cost of

capital in use only on the basis of audited accounts taking into account only the

assets in use after the date of commissioning of the assets and to arrive at the

ROE accordingly. The objectors have also demanded that the period of

interruption be provided by the licensee furnishing the MRI records along with the

bills. The objectors have appealed that the reduced T&D loss and ATC loss

should be considered upholding the claimed gradual improvement of the

performance of WBSEDCL. The objectors have requested to consider the

income of WBSEDCL in earlier years against the supply to those other than

licensees or own consumers and also from the income arising out of net UI

charges.



3.8 Hotel and Restaurant Association of Eastern India in their objection have

mentioned that the Govt. of W.B declared in the year 2000 that the hotels were

industries. The objector on the basis of this have appealed that the industrial

rates be made applicable for the electricity consumed by the hotels in carrying

out their business in place of the commercial rate which is presently being

applied for such consumption causing financial difficulties to the investors in the

hospitality industry.

3.9 Eastern Railway in their objections have stressed on the need for a reasonable

railway traction tariff and have objected to the proposed increase in the maximum

demand charge and have appealed for reduction in existing demand charges of

Rs.180 / KVA / month. Pointing out that in the tariff petition a reduction in

industrial energy charge has been proposed while the charges for traction energy

has been proposed to be enhanced, eastern railway have appealed for reduction

in per unit energy charges for the Railways. The objectors have also pointed out

that the rebate on energy charge for industrial consumers @ 4% & 8% in respect

of 33 KV and 132 KV level was ordered by the Commission for earlier years but

no such rebate was extended for 25 KV & 132 KV railway traction. The objectors

have requested to consider issuance of voltage rebate at the same rate as would

be applicable for HT / EHT industrial tariff. Eastern Railway have appealed for

withdrawal of any extra charge for excess drawal of energy for the reason that

the railway traction load is fluctuating in nature due to factors like public agitation,

accident, equipment failure, diversion of train due to natural calamity and traction

power interruption all of which are beyond the control of railway authorities.

Eastern Railway have proposed for levying extra charges on total excess

demand vis-à-vis total contract demand for all their TSS / GSS getting supply



from WBSEDCL. For the same reason the eastern railway have proposed that

punitive clause for load factor surcharge for railways should be implemented for

the load factor of 25% and below instead of 55% as proposed. Eastern Railway

have also proposed to keep the provision of power factor rebate clause for power

factor above 0.85% in railway traction instead of from above 0.9% as proposed.

Eastern Railway in their objections have drawn the attention of the Commission

to their reasoning for adopting simultaneous maximum demand for traction

substation in line with tariff order passed by some other State Electricity

Regulatory Commission. To justify this Eastern Railway have given the reason

that the loads on traction being moving load drawing power from one traction

substation to other in accordance with the time schedule, some times exceed

contract demand of one substation whereas drawing much less than the contract

demand of the immediate previous substation. According to Eastern Railway

charging for maximum demand for individual supply point as per the present

system is not judicious and have appealed for adoption of recording of

simultaneous maximum demand for traction substations. Eastern Railway have

pointed out that WBSEB, the earlier licensee was realising service connection

charges from the railway for augmentation of their transformer capacity to cater

the growth of electric traction. Eastern Railway have prayed that WBSEDCL

should not ask for any payment like service connection charges for augmentation

of transformer capacity in their substation. Eastern Railway have also prayed for

introducing some disincentive for WBSEDCL for not providing quality power

supply to Railways. They have at the same time proposed that the Railways may

be given some rebate in tariff on this account.

3.10 Jaya Shree Textiles besides raising objections against the proposed tariff of

WBSEDCL applicable to them have raised some issues stated to be confronting

the industrial consumers in general. They have appealed for lower cost of power



during off-peak hours from the proposed level of 69% of normal rate. The

objectors have appealed for the rate of off-peak period at a level of 50% of

normal energy charge. The objector have pointed out that WBSEDCL has

proposed higher incentive for load factor from 60% to 80% but no increase has

been proposed in the load factor rebate for load factor from 80% and above. The

objector have proposed that rebate for load factor of 85% and above be given at

a rate of 60 paise / kwh. Similarly, in the case of power factor also they have

proposed a higher rebate from and above power factor of 0.94. Linking the T&D

loss and rebate on energy charge proposed by the licensee, the objectors have

appealed for a total rebate of 20.7% instead of 8% on energy charges for 132 KV

consumers. Raising the question of cost of supply at the respective voltage

levels of the consumers the objector have proposed that the tariff should be fixed

by taking T&D loss of 4% in 132 KV system.

3.11 Eastern India Textiles Mills’ Association and Hooghly Chamber of Commerce

have submitted similar objections in line with the objections of Jaya Shree

Textiles. These two objectors have in addition also prayed for rebate on energy

charge at the level of 17.2% and 4.9% in the case of 33 KV & 11 KV consumers

respectively.

3.12 All Bengal Electricity Consumers Association (ABECA), 27A, Dhiren Dhar Sarani,

Kolkata-12, in their objection in the tariff proposal of WBSEDCL have submitted

the following points:-

(i) The Association has alleged that WBSEDCL has failed to follow the

regulations to provide better consumer services and to safeguard the

interest of the consumers. WBSEDCL in the petition has not mentioned



anything regarding the payment of compensation to the consumers for

load-shedding and low voltage etc. The Association has suggested

imposition of penalty on WBSEDCL instead of allowing fresh hike in their

tariff 2007-08.

(ii) The Association has further argued that the erstwhile WBSEB had earned

profit amounting to Rs.300 crore last year and therefore, no tariff hike

should be allowed this year.

(iii) According to the objectors T&D loss claimed by WBSEDCL at the level of

20.34% is unreasonably high and should be allowed at the level of 18%

only.

(iv) The objectors have objected to the provision of Rs.11.50 crore as

unforeseen exigency and have suggested that this amount should not be

taken into consideration while calculating the revenue requirement of the

company. They have further proposed that if any such reserve is

required, it should be built up from the return earned by the licensee.

(v) The Association has appealed that the prayer of the petitioner to consider

the rise in price index resulting in increased cost of business be

disallowed.

(vi) The objectors have also raised the objection against recovery of Rs.4.96

crore in the revenue requirement under special appropriation head as

expense of SHRELCOP. The objectors have further objected to inclusion

of Rs.22.73 crore arising due to difference in the selling price of WBSEB

to SHRELCOP and power purchase of SHRELCOP from WBSEB in the

tariff orders of 2003-04, 2004-05 and 2005-06.



(vii) ABECA has objected to the inclusion of Rs.49.73 crore being 1/5th of the

withheld amount of Rs.372.98 crore in the tariff order for the years 2002-

03, 2003-04 and 2004-05. The objectors have suggested penalty to

WBSEDCL for the default of WBSEB in submission of appropriate

documents, information etc. for which the amount was originally withheld.

(viii) The objectors have also objected to the claim of WBSEDCL of Rs.31.85

crore being 5% of Rs.630.96 crore which was deducted from the revenue

requirement of WBSEB towards excess interest allowed in the earlier

years stating that once reducing the rate of interest in one Govt. order

and after a long time withdrawing by another such order should not be

considered for tariff fixation as it goes against the interest of the

consumers. WBSEB in such case should take up the issue with the Govt.

instead of claiming the amount.

(ix) Refuting the figure for total equity as provided in the transfer scheme the

objectors have suggested that the equity fund of WBSEB as allowed for

the year 2006-07 should be retained at the level of Rs.1352.62 crore for

2007-08 also. After the bifurcation of WBSEB into two companies equity

base of WBSEDCL should, according to the objectors, be considered as

½ of Rs.1352.62 crore i.e., Rs.676.31 crore and the return also be

calculated accordingly.

(x) The objectors have mentioned that the quantum of power purchase

allowed by the Commission for the year 2006-07 was higher than the

actual power purchase made by WBSEB in the year 2006-07. They have

suggested that the excess amount stated to have been allowed by the

Commission may be deducted from the power purchase cost for 2007-08.

(xi) The objectors have raised objections against the stated excess cost for

purchase of power from WBREDA and have expressed their desire to



know whether the purchase rate has been enhanced by the Commission

as also the reasons for reduction of power purchase from this source.

(xii) The Association has questioned the lower purchase of 622 MU only from

DVC in radial mode instead of 815 MU stated to have been allowed by

the Commission in 2006-07. They have also raised the question as to

why 690 MU of energy purchase from DVC has been proposed in 2007-

08. The objectors also want to know whether the proposed peak

purchase of 62 MU from DVC in 2007-08 is included in the purchase

proposal of 690 MU.

(xiii) The objectors have objected to higher ERLDC charge in 2007-08 in

comparison to that allowed for WBSEB in 2006-07.

(xiv) It has appeared to the objectors that WBSEB has drawn 2512.53 MU less

energy during 2006-07 in comparison to that allowed by the Commission

for power purchase. So, the Association has proposed that the cost of

23% of 2512.53 MU energy being Rs.184.38 crore be deducted from the

revenue requirement of WBSEDCL for 2007-08 for excess T&D loss. The

objectors have further reasoned that in the tariff proposal of 2007-08

excess power purchase of 1093 MU has been claimed in comparison to

that allowed for 2006-07. Corresponding cost allowed for T&D loss at

24% of 1093 MU @ Rs.3.24 per unit should, according to the objectors,

be deducted from the proposed expenditure of Rs.6303.02 crore.

(xv) The objectors have opined that the projected higher power purchase cost

is due to low PLF in hydro stations of WBSEDCL. The Association has

suggested not to allow PLF below 75% in the hydel projects. On this



account the objectors have opposed the excess power purchase cost for

2007-08.

(xvi) ABECA has expressed doubt about the proposed staff strength of

WBSEDCL and the projected employees’ cost thereof.

(xvii) The Association has further objected on proposed R&M expenses for

generation in the tariff proposal of WBSEDCL and has suggested to

deduct Rs.22.06 crore, which they claim, is excess R&M charge. The

objectors have observed that R&M cost for generation should follow the

PLF pattern of hydro generation. The objectors have proposed not to

allow more than Rs.65.62 crore for total R&M cost in 2007-08.

(xviii) Regarding administration and general expenses, the objectors have

made their own calculation to show that Rs.17.23 crore is required to be

deducted from the total administration & general expenditure projected by

WBSEDCL.

(xix) Regarding bad debts, the objectors have opined that the bad debts in the

audited figure of 2005-06 is Rs.4.30 crore but the Commission in the tariff

order of 2006-07 had allowed bad debts at Rs.19.35 crore, thus, allowing

Rs.15.05 crore more for realization in 2006-07 which should now be

deducted in the tariff order of 2007-08. Further, according to the

objectors, for Rs.4.30 crore bad debts proposed in 2007-08 no reason

has been shown by WBSEDCL.

(xx) The objectors have observed that WBSEDCL has claimed Rs.217.61

crore as depreciation charge for 2007-08, whereas in 2006-07 out of a

total depreciation of Rs.211.17 crore allowed to WBSEB, Rs.68.35 crore



was towards transmission assets. For 2007-08, according to the

objectors WBSEDCL should not be allowed to recover depreciation

charge of Rs.142.82 (Rs.211.17 – Rs.68.35) crore. The objectors have

also proposed that depreciation of WBSEB allowed on other assets in

2006-07 should be halved for taking into account the depreciation

charges for distribution licensee. ABECA has proposed that not more

than Rs.138.26 should therefore be allowed as depreciation charges to

WBSEDCL for 2007-08.

(xxi) The objectors have also objected to Rs.70.60 crore of interest on working

capital claimed by WBSEDCL and have proposed that the full amount

should be deducted from total expenditure.

(xxii) ABECA expressed its opinion that total sale proceeds on export of 5075

MU of energy outside the region should have been mentioned in the tariff

petition of WBSEDCL along with the figure of 90% of earnings that might

be given to the consumers. The objectors have also demanded that this

information should be given by the licensee to the Commission in writing

as well as in open hearing.

(xxiii) The Association has further contended that according to its calculation

average cost of supply cannot be more than Rs.2/- per unit in place of

claimed rate of Rs.3.24 per unit.

(xxiv) Making their own analysis of figures for net generation, purchased

energy, sale to own consumers, export, supply to CESC and DPSCL,

T&D loss etc. the objectors have drawn the inference that the results do

not show efficiency in performance or any safeguarding of consumers

interest. The objectors have also concluded that excess purchase has

been projected by WBSEDCL for 2007-08. The objectors have

demanded rejection of proposal for excess purchase and have suggested



increased generation from own sources of the licensee. The objectors

have further drawn their conclusion that since export of power projection

according to their analysis is more than that of excess of own consumers

consumption projection in 2007-08, the power purchase quantum and

cost are more in 2007-08 and amounts to uneconomical use of resources

and bad performance.

(xxv) According to the calculation of the objectors power purchase cost in

2007-08 is lower than that in 2006-07 but the projected average cost

shows an increase of 5 paise / unit. This, according to the objectors,

shows that all other cost per unit has increased by 3 paise / unit which

has been stated by the objectors to be unjustified and has been opposed

by the objectors.

(xxvi) On the basis of their analysis the objectors have determined that

Rs.1518.09 crore is required to be deducted from total projected

expenditure of Rs.6303.02 crore. Further, an amount of Rs.2121 crore is

to be deducted as proposed by WBSEDCL for other income, revenue

from bulk supply and supply to Sikkim, benefits passed on to the

consumers and expenses attributable for sale to persons other than

licensee or consumer. The objectors have deduced from above that the

revenue requirement of WBSEDCL for 2007-08 should be Rs.2663.93

crore and on the basis of saleable energy of 12896 MU, the average cost

according to the objectors comes to not more than Rs.2.06 per unit.

(xxvii) ABECA has further argued that in 2006-07 average cost of supply of

WBSEB was 319 paise/unit which the licensee has proposed to be raised

to 324 paise/unit for 2007-08. According to the objector’s argument,

WBSEDCL, in that case, cannot supply power to CESC @ 217 paise/unit,

DPSCL @ 255 paise/unit and Sikkim @ 169 paise/unit imposing extra



monetary burden on its own consumers. These agencies should,

according to the objectors, be allowed to purchase directly from WBPDCL

passing on its benefit to the consumers of WBSEDCL. The objectors

have also raised objection on purchase of power from DPSCL @ 330

paise/unit and sale of power @ 255 paise/unit.

(xxviii) The objectors have suggested category-wise tariff structure of WBSEDCL

on the basis of ABECA’s own calculation of average cost @ 206

paise/unit. The objectors have also suggested their own rates for

realisation of energy charges from the consumers with un-metered

supply. They have suggested new rate for realisation of fixed charge

from selected consumers. For supply to CESC, TOD rates of 204

paise/unit, 208 paise/unit and 196 paise/unit have been suggested by the

objectors for normal period, peak period and off-peak period respectively.

(xxix) The objectors have presented their argument against Purulia Pumped

Storage Project wherefrom WBSEDCL proposes to procure 850 MU of

energy in 2007-08 by purchasing 1130 MU of energy for use in pumping

mode. Calling such mode of power procurement uneconomical, the

objectors have pleaded for disallowance of Rs.52.64 crore of excess

power purchase on this account.

(xxx) The objectors have also argued that the average rate of power purchase

being Rs.1.88 per unit the selling of power to Sikkim @ Rs.1.69 per unit

will cause a loss of Rs.1.52 crore for 80 MU of energy and this should be

disallowed.

(xxxi) The objectors have opined that sale of power to CESC and DPSCL at

rates below the proposed average cost of 324 paise/unit in 2007-08 will

cause a loss of Rs.48.60 crore and Rs.3.10 crore which will become a

burden on consumers of WBSEDCL and should not therefore be allowed.



(xxxii) ABECA strongly objected to the proposed additional rebate of 5 paise/unit

for EHV consumers arguing that this will raise the burden on L & MV

consumers.

(xxxiii) ABECA has argued against increase in load factor rebate and power

factor surcharge. Increase in load factor rebate from 4 paise to 45 paise,

according to the objectors, will benefit only big industrial consumers to the

disadvantage of small L & MV consumers who will have to according to

the objectors bear the burden. Proposed increase of power factor

surcharge by 20% for consumers having power factor below 0.85 has

been opposed by the objectors for being unjustified. Instead, the

objectors have suggested to penalise WBSEDCL for low PLF in its

generating stations.

(xxxiv) The objectors have suggested a rate of 50 paise / unit for supply of

electricity to those agricultural consumers who are supplied through

meters.

(xxxv) Calling the proposal of increase of tariff for public light, LT public utility

service and public water works as anti-people, the objectors have

suggested increase of rates for HT industrial and HV & EHV consumers

and have advocated for withdrawal of fixed charges for LT consumers.

Opposing the proposal to enhance meter rent by rupee 1/- for LT

domestic consumers the objectors have proposed to allow the purchase

of meters by consumers. The new proposal of WBSEDCL for tariff for

400 KV supply has also been objected by ABECA.



3.13 West Bengal Cold Storage Association has, in their submission against the tariff

proposal of WBSEDCL, described the tariff proposal as a ‘shock surge for

remotely situated HV Cold Storage consumers’ and has called it ‘discriminatory’

in comparison to industrial consumers.

The Association has argued that in view of recent upward revision in the scale of

electricity charges, geographical position of Cold Storage set up and the purpose

of use of energy the circumstances do not uphold any further hike in tariff at this

stage. The objectors have raised objections against the proposal of raising the

energy charge for Cold Storage consumers by 22 paise / unit and the proposal to

raise the demand charge by Rs.20/- per KVA/month. The objectors have further

raised objections against inclusion of the receivable amount of outstanding dues

of erstwhile WBSEB from SHRELCOP in the cost statement for 2007-08, thus,

passing on the financial burden of SHRELCOP to the consumers of WBSEDCL.

By means of graph etc. the Association has, in its, submission pointed out that

the effective cost of electricity including demand charge for a 200 KVA Cold

Storage plant at a loading of 93263 quintals increases sharply and reaches as

high as Rs.25/- per unit during the months from December to March although the

average cost of supply of WBSEDCL has been proposed to be Rs.3.24/unit in

2007-08. Furnishing operating features of Cold Storages during the stated

loading, holding, unloading and lean periods the Association has presented the

case of Cold Storage consumers with the help of graphs showing the profile of

consumption and demand during the various months of the year. Calling the

Cold Storages as seasonal establishments the objectors have described them as

pre-dominantly rural set up playing an important role in serving the interest of

poor and marginal farmers. In view of the stated seasonal character the

Association has prayed for Actual Power Drawal Based Demand Charge instead

of existing charges based on 75% of contract demand for Cold Storages.



The objectors have raised objections against the claim of 24.7% T&D loss made

in the tariff petition of WBSEDCL mentioning that the T&D loss of 25% fixed by

the Commission for 2004-05 should serve as a bench mark with gradual

reduction each year reflecting progressive improvement in the performance of

the licensee in accordance with the statute. The objectors have also expressed

their opinion against the speed of implementation of totally metered supply

calling it sluggish and have particularly mentioned about continuance of un-

metered supply to rural agricultural consumers.

Praying for extension of the benefit of higher load factor rebate for HV Cold

Storage consumers the Association has pointed out that so far efficient utilisation

of energy is concerned, a positive role for Cold Storage consumers is equally

pertinent as their industrial counterpart. The objectors have appealed for

downward revision in meter rent as the cost of static energy meter has come

down appreciably.

The Association has further pointed out that the rent for Cold Storages for

agricultural produces like potato is fixed by the State Govt. in February each year

and any mid term rise in tariff in electricity cannot be recovered by the Cold

Storage owners from the actual users.

3.14 In their submission M/s. Sri Vasavi Industries Limited (SVIL) have mentioned that

in the notification of Govt. of W.B. assets of WBSEB which stand transferred to

WBSEDCL do not include the 132 KV line through which supply from grid

substation is received by SVIL which according to the objectors signify that SVIL

does not use distribution network of WBSEDCL. Hence, such cost of distribution

system according to the objectors which includes 33 KV system and below

should not have any impact on the cost of supply to SVIL.

The objectors have raised objection on the equity base claimed by WBSEDCL.

According to the objectors, the capital cost of assets in use after their date of



commissioning should only be considered for the purpose of determination of

tariff whereas WBSEDCL has included the cost of assets which are in progress

in 2007-08 and has arrived at the capital cost to determine the equity base. The

objectors have further objected to the use of un-audited figures by WBSEDCL for

2006-07 in order to calculate the proposed tariff for 2007-08. The objectors have

appealed to consider only Rs.1942 crore as equity of WBSEDCL for the year

2007-08 under the total capital cost of assets in use instead of proposed

Rs.2796.31 crore. The objectors have appealed to calculate the return @ 14%

on Rs.1942 crore accordingly and not beyond that.

Objecting to the claim of WBSEDCL that the licensee has attempted to reduce

cross-subsidy of various classes of consumers, the objectors have prayed that

the cost of supply to consumers at different voltages be determined first and then

the amount of cross-subsidy be calculated. This method according to the

objectors will help in coming to the conclusion about reduction in cross-subsidy.

The objectors have further demanded that the cost of supply at 132 KV line for

SVIL be indicated in the tariff order.

The objectors have raised objection against the high T&D loss projected by

WBSEDCL for 2007-08. The objectors opined that T&D loss of 24.7% as per

Restructuring Plan notified by the State Govt. should not be considered for

calculation of tariff for 2007-08. According to the objectors the notification is

neither a policy involving public interest nor a direction to the Commission. The

objectors have appealed for an ‘appropriate’ T&D loss for 2007-08 after lowering

it from 23% allowed by the Commission for 2006-07. M/s. SVIL have appealed

for taking into consideration the stated additional income from trading and U.I

charges earned by the licensee over the envisaged amount in the tariff

formulations of past years and also to take into consideration stated extra gain

made by the licensee in terms of alleged extra sale / sale at higher rate during

the past years. M/s. SVIL prayed for direction to the licensee for purchase of



cheaper power on Merit Order basis for sale to its consumers in order to protect

their interest. The objectors have also appealed to the Commission not to

consider any increase in demand charge in the year 2007-08.

M/s. SVIL have appealed for an opportunity of hearing to their objections so that

all issues may be clarified.

3.15 The objections submitted by South Eastern Railway have been carefully

examined and it is noted that the objections of South Eastern Railway and those

of Eastern Railways are almost similar in nature. The objections of Eastern

Railway have been considered under para 3.9 above and there being no

substantive difference between the objections submitted by South Eastern

Railway, the objections submitted by South Eastern Railway are not being

repeated here.

3.16 Bharat Chamber of Commerce (BCC) in their submissions have objected to the

revenue requirement of WBSEDCL in their tariff proposal for 2007-08 and has

expressed that the expenses under different heads have been shown

excessively to cover up the inefficiency of the licensee. BCC has appealed to the

Commission not to consider such abnormal rise of tariff because of their

observations / recommendations on the following points:-

(i) 11% rise in demand charge stated to have been proposed by WBSEDCL

is, in accordance with the objectors, a huge increase and off sets the

proposed tariff reduction of Rs.0.05 paise / unit for 11 KV industrial supply

and Rs.0.02 paise / unit for 33 KV industrial supply. The objectors have

further appealed that the Maximum Demand be recorded between 6 A.M



and 10 P.M in line with practices followed in the year 2002-03, 2003-04

and 2004-05 instead of on a 24-hour basis as is being followed from

2005-06. The objectors have argued that the proposed consideration of

Maximum Demand attained during off-peak hours will discourage higher

drawal during this period and as a result the very purpose of flattening the

load curve may be defeated.

(ii) BCC has also prayed for preventing the charging of additional energy

charge as proposed by WBSEDCL, arguing that the proposal is counter

productive and will harm the interest of the genuine consumers who opt

for right contract demand. The objectors have also proposed that

additional charges payable for exceeding CD / energy drawal should be

indicated in plain and simple English as in earlier years instead of

introducing complex formula which cannot be easily understood by the

ordinary consumers.

(iii) BCC have suggested for squaring up the cross-subsidy from the

electricity duty collected.

(iv) According to the objectors the proposed return on equity is very high. A

permitted return @ 14% (Rs.391.48 crore) has been proposed along with

a provision of Rs.217.61 crore to revenue requirement as depreciation

expenses. According to the objectors this has resulted in a total return on

equity of 22.3%. The objectors have appealed to the Commission to ask

the petitioner to detail out the basis of 22.3% return for review and

consideration.

(v) BCC has objected to high T&D loss proposed by WBSEDCL in their tariff

petition and has appealed to the Commission to segregate the

percentage of technical and administrative loss after computing the



feeder-wise energy loss. The objectors have also prayed for gradually

restricting the aggregated technical loss to 15%.

(vi) The objectors have objected to the provision of 10 MU of auxiliary

consumption proposed by WBSEDCL for the year 2007-08 being very

high compared to auxiliary consumption actually required for the earlier

years. They have appealed to restrict the auxiliary consumption within

2% maximum stated to be according to the guidelines of CEA. 6 MU

auxiliary consumption in Purulia Pump Storage Project has also been

objected to by the BCC who has appealed for critically examining the

auxiliary consumption versus generation in PPSP.

(vii) The objectors have objected to graded load factor rebate as proposed in

the tariff petition of WBSEDCL. The objectors have suggested that at

best there may be two slabs of load factor – one upto 70% and the other

above 70%. They have also appealed for average load factor for tariff

fixation at 35%.

(viii) The objectors have objected to the PLF in the hydro plant of WBSEDCL

which has been stated to be low arguing that if there is water availability

there is no reason why PLF should be so low and have suggested routine

maintenance to be carried out in phased and planned manner. The

objectors have suggested calculation of tariff on the basis of 65% PLF.

They have also suggested the Plant Availability Factor to be maintained

at 75%.

(ix) BCC has questioned the validity of the government order revising the rate

of interest retrospectively and has requested the Commission to appeal to

the State Govt. to restore their earlier order so that the deducted amount

of Rs.637.96 crore is not progressively recovered by WBSEDCL through

higher tariff burdening the consumers.



(x) The objectors have appealed to the Commission for not authorizing

WBSEDCL to include Rs.27.69 crore against SHRELCOP since the tariff

of erstwhile WBSEB for 2003-04, 2004-05 and 2005-06 have already

been fixed by the Commission in consideration of the proposed facts.

(xi) The objectors have objected to higher purchase from external sources

while operating their own plants at low PLF and PAF.

(xii) Observing that the majority WBSEDCL debtors are government offices

and its own substations, BCC has appealed that the Commission may

direct WBSEDCL to realize the outstanding dues from the government

officials by appropriate deduction from their salaries and by proportionate

cut of central allocation to the government organization.

(xiii) The objectors have suggested that the draft of the tariff prepared by

WBERC should be put on internet and WBERC should invite suggestions

on the same by Consumer Organization, Trade & Industry Association

and Chambers of Commerce before finalizing the tariff. They have also

suggested to set up a Right to Information Cell by the licensee manned

by proper and customer friendly officers.

(xiv) BCC has also appealed that the charging of connection charges and

security deposit by the licensee should be made more transparent to

show that the reasonably incurred expenses have only been charged.

(xv) BCC has further suggested that all projected figures in the tariff petition

should be compared with the figures actually achieved and if the

expenditure has been less than the projected figures then the subsequent

year’s revenue requirement should be reduced suitably.



(xvi) Observing that there has been an average increase in overall tariff for the

TOD consumer particularly for 11 KV and 33 KV industrial consumers, the

objectors have appealed that peak and off-peak rates should be so

adjusted that the average tariff normal, peak and off-peak demand is

ultimately beneficial to the consumers.

(xvii) The objectors have objected to sale of power to Sikkim and outside the

region by the licensee at a cheaper rate and importing of power stated to

be at very high rate. The objectors have further proposed that the fund

recovered through Security Deposit and the fund recovered by the Loss

Prevention Wing of the licensee in one year should be reduced from the

total sum proposed to be attributed to T&D loss in the next year.

3.17 The Commission has carefully noted the objections, suggestions and

comments which the objectors have submitted to the Commission in

response to the publication of the gist of the tariff petition of WBSEDCL

for the year 2007-08 in different newspapers and has considered the

relevant points raised by the objectors pertaining to the said tariff petition

while presenting the analysis and recording its conclusion on various

components of the instant tariff proposal. These are incorporated in

different chapters of this order that follow.

3.18 There however are a few more objections which have not found any

specific mention in the analyses in the chapters that follow. While some of

them are not quite relevant, clarifications in respect of some, in the

opinion of the Commission, will be in order.



3.18.1 Some of the objectors have made a few general remarks about the tariff

proposal of WBSEDCL and have proposed lower average cost of supply,

while some have proposed a specific rate(s) at which a certain group of

consumers as per their proposal should be given supply. In the absence

of any reasoning or logic given by the objectors for such opinion, the

Commission did not take a view on these objections. In another variation

of such a proposal, an objector has suggested deductions / disallowances

on several counts from the claims made in the tariff petition and has

thereby arrived at a lower average cost of supply to the consumers. The

proposed deductions / disallowances, not having been supported by facts

and figures and further not having followed the methods laid down by the

concerned Regulations, could not be considered by the Commission.

3.18.2 Some objectors have raised the question of performance standard of the

licensee and quality of power supply and want to penalize the licensee

through lower tariff. In regard to such objections on standard of

performance of the licensee, the Commission clarifies that such matters

are to be dealt under WBERC’s Regulation No. 24/WBERC dated

18.10.2005 (Standard of Performance of Distribution Licensees Relating

to Consumer Services) and not under WBERC’s Regulation No.

31/WBERC dated 09.02.2007 (Terms and Conditions of Tariff), 2007.

3.18.3 Some of the objectors have blamed the policy of elimination of cross

subsidy which in their opinion have caused higher tariff for small,

domestic commercial consumers. This view is simply not correct. A



number of groups of consumers, specially those belonging to the LT

categories, i.e, who in general are small consumers still continue to enjoy

cross subsidies.

3.18.4 Some of the objectors have demanded that un-metered supply to

agricultural consumers be continued. The Commission does not find any

rationale behind such a demand which is particularly violative of section

55 of the Act. Some category of consumers have on the other hand

demanded quicker implementation of the fully metered supply. The

demand for continuation of un-metered supply is simply not justified and

the Commission has already fixed a date, being 31.03.2008, beyond

which no supply which is unmetered should be given.

3.18.5. Some of these consumers have also proposed immediate implementation

of the policy of Open Access. The Commission has already specified

regulations on Open Access and its phased implementation in terms of

provision of the Act. Some applications for Open Access have already

been admitted and appropriate orders have been issued by the

Commission for implementation of specific proposals of Open Access.

But the Regulations in this behalf do not now call for any application to

the Commission for availability of open access should be automatically

decided upon in terms of those Regulations within definite time periods.

3.18.6 Another general objection which has been raised involves change in

category of certain types of consumers. Categorization of various service

providers under industrial category is an issue regarding which the

Commission takes a view considering the consumption characteristic of



consumer, nature of load and its impact on power factor, voltage, loss etc.

for the electricity consumed by the consumer for production / manufacture

of a tangible commodity.

3.18.7 Appealing for a reduction in energy charge, some objectors who are also

consumers of traction power, have argued for a rebate on energy charge

in line with industrial consumers, and have additionally raised objections

against levying demand charge for individual point of supply and have

appealed for such demand charge to be fixed on the basis of

Simultaneous Maximum Demand. But the point remains that the

characteristics of the load of traction is different from that of industrial

consumers and deserve to be treated distinctively. The onus of the utility

to keep its plants & installation ready for providing instantaneous service

to a consumer lies separately on each individual supply point for the

respective contract demand. An opposition to demand charge has come

also from some other objectors who represent industrial consumers. The

same consideration applies to them too. Through the mechanism of

demand charge, the consumer creates for himself a right vis-à-vis the

supplier to obtain the supply, and also simultaneously helps the supplier

to meet a part of the latter’s fixed cost. This mechanism helps both the

supplier and the consumer and there does not appear to be any reason

for abolishing the same particularly when the concept is being applied to

the process of tariff determination over a long time in the past. Also, there

does not appear to be any rationale for charging demand charge only

once for a consumer even though the latter may have a large number of

supply points that have often different geographical locations, or different

purposes of consumption or even different voltages.



3.18.8 Some consumers like Cold Storages, Tea Gardens etc. have raised

objections against uniform demand charge throughout the year in the light

of seasonal nature of their energy requirement. The Commission clarifies

that in accordance with the regulations specified by the Commission the

consumers have enough scope and right to revise their contract demand

at appropriate time which will reduce the adverse impact of demand

charge on low energy consumption during lean season.

3.18.9 One of the objectors has called for squaring off cross subsidies with

Electricity Duty. But the latter, though collected through the bills from the

consumers of electricity by the licensees, is not an element of the tariff

determined in terms of the relevant provisions of the Electricity Act, 2003

and the concerned Regulations made thereunder. No squaring off

between the two is therefore permissible.

3.18.10 There are some objectors who are against any increase in the load factor

and power factor surcharge, while some other objectors have proposed

higher rebates and lowering of the threshold limits for qualifying for the

rebates. While the Commission has, after a careful consideration of all

relevant factors, taken appropriate views that may be seen at the

concerned portions of this tariff order, it needs to be stated that rebates

and surcharges of various amounts are universally used as incentives

and disincentives for leading the consumers to particular directions that

are considered useful and beneficial to the entire system. These rebates

and surcharges in question tend to improve capacity utilization and

voltage of supply besides leading to reduction of loss in the distribution

system. There, therefore, is no technical or economic reason for



accepting such suggestions as those made by the first group of objectors.

Simultaneously, there is also no reason to increase the extent of rebate or

to lower the qualifying thresholds only to benefit a particular group of

consumers. There should be a judicious balancing between these two

extreme views.

3.19 There are quite a few other objections and suggestions that have not

been mentioned in the foregoing sub paragraphs from 3.18.1 to 3.18.9.

But the Commission has gone into merits of all such objections and

suggestions irrespective of their specific mention or absence of such

specific mention in the instant tariff order.


CHAPTER – 4LAW POINTS ON HEARING


4.1 One issue that has been raised by more than one objector concerns the question

of hearing, i.e., these objectors have expressed a desire to be heard before the

tariff is determined by the Commission. Since this is an oft repeated issue, the

Commission would like to give the matter a close look before going into the nitty

gritties of determination of tariff. Besides, the Commission has not, as a matter

of fact, given any hearing either to the tariff petitioner or any of the objectors by

way of observing procedural formalities. The matter therefore deserves a

detailed treatment at the very beginning.

4.2 The Commission has meticulously followed the provisions of section 62 and

section 64 of the Electricity Act 2003 while determining the tariff in question. Of

these two, section 64 ibid contains the procedure of determination of tariff, and a

bare reading of section 64, along with its sub sections clearly shows that while

issuing a tariff order under section 64(3)(a) ibid, the Commission is required only

to consider all the suggestions and objections received from the consumers,

stake holders etc. but is not required to hear them. The Commission is of its

considered opinion that under the Electricity Act,2003, the legislators have

deliberately excluded any scope of hearing while determining tariff in terms of

section 62 read with section 64 of the Act.

4.3 It is to be noted that hearing has been specifically required in case the

Commission decides to reject a tariff application in terms of section 64(3)(b) ibid,

if in the opinion of the Commission, the application under section 64(1) is not in

accordance with either the provisions of the Electricity Act,2003, or the Rules, or

the Regulations made thereunder, or the provisions of any other law for the time

being in force. In other words, the Commission, even though empowered to

reject a tariff application, can reject the same only after granting an opportunity of

being heard to the applicant licensee or the generating company. Therefore,



section 64(3)(b) ibid limits the scope of hearing only to cases of outright rejection

of a tariff application. On the issue of hearing, the provision of section 64(3)(a) is

in clear and sharp contrast to the provisions of section 64(3)(b). So much so, that

it leaves one with no doubt that the exclusion of the requirement of hearing from

section 64(3)(a) is a deliberate exclusion, the requirement of hearing being

substituted by the requirement of consideration of all suggestions and objections

received from the public.

4.4 It is also relevant to note that the Electricity Act, 2003 has laid down the specific

requirement of hearing wherever the same is intended. The Act has entrusted the

Commission with different kinds of functions. Determination of tariff under section

62 read with 64 is only one of such functions. In respect of some functions, the

statute has clearly mandated the Commission to provide hearing. Some

examples of such sections are being 15(6)(b), 57(2), 142 and 143. These may

be seen in contrast to sections 19(3), 63, 128(6) and 130 where the scope of

hearing has deliberately excluded. It may also be noted that if tariff is determined

under section 63 of the Act through a process of bidding, no hearing is required

to be given to anyone.

4.5 Moreover, in line with the Electricity Act,2003 Commission has also framed the

West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2007. Regulation 2.10.1 of said WBERC (Terms & Conditions of

Tariff) Regulations 2007 also exclude the scope of any hearing either to any

licensee or to a generating company or to the consumer or to the public while

determining tariff.

4.6 The Commission is, therefore, of the opinion that under section 64(3)(a) read

with regulation 2.10.1 of the WBERC (Terms and Conditions of Tariff)

Regulations, 2007 no hearing is required to be given either to a tariff applicant or

to the consumers or to the public. What is required is consideration of



suggestions and objections received from the consumers and / or public.

Therefore, the Commission rejects the contention of all the objectors who have

sought hearing in the process of determination of tariff.

4.7 This point of law, as to whether in view of section 64 of the Act hearing is to be

given to the licensee and consumers at large before tariff is determined was an

issue in a writ petition being W.P.No.16166(W) of 2004 filed before the Hon’ble

High Court, Calcutta in which West Bengal Electricity Regulatory Commission

was one of the respondents. The Hon’ble Justice Pinaki Chandra Ghose by an

order dated 04.10.2004 having considered the judgment of the Hon’ble Supreme

Court reported in (2002) 8 SCC 715, inter alia held that :

“ After going through the said Regulations it appears to me that

hearing was not contemplated under the said Section 64 of the said Act

and the Regulations framed thereunder. Therefore, in my opinion, not

granting of a hearing to the petitioner cannot said to be violation of natural

justice after construing the said Act and the Regulations framed

thereunder. Therefore, in my opinion, it cannot be said that at this stage

the said order has been made arbitrarily or any violation of natural justice

……… “

4.8 The aforesaid order dated 4th October,2004 of the Hon’ble Justice Pinaki

Chandra Ghose was challenged before the Hon’ble Division Bench of the

Hon’ble High Court in an appeal being MAT No.596 of 2005. The Hon’ble

Division Bench comprising of the Hon’ble Justice Aloke Chakrabarti and the

Hon’ble Justice S.P.Talukdar affirmed the order of the Ld. Single Judge by an

order dated 25th February 2005 and, inter alia held that :

“ ……. After due consideration of the relevant provisions of the Act,2003

and having regard to the submission made by the learned Counsel for the



parties, we think that what is required at the stage of determination of

tariff is consideration and not ‘hearing’ ………”

4.9 However, the Writ petition was dismissed for default by an order dated 29.03.07

by the Hon’ble Justice Aniruddha Bose due to non-appearance of the

Ld.Advocate for the writ petitioner. The Commission records here that the

Commission is aware of the fact that the aforesaid orders were interim in nature

and by virtue of the order dated 29.03.07 to the effect of dismissal of default of

writ petition being W.P 16166(W) of 2004, those earlier orders of Hon’ble High

Court, Calcutta do not exist. Nonetheless, the relevant part of the aforesaid two

orders are recorded to here only for the fact that the view taken by the

Commission was accepted by the Hon’ble High Court, Calcutta, while passing

the interim order prior to dismissal of the writ petition on the ground of non-

appearance of the Ld. Advocate for the writ petitioner.

4.10 The Commission therefore passes the instant tariff order for WBSEDCL for the

year 2007-08 without giving any hearing to either the tariff petitioner or any of the

objectors, but after taking into consideration all suggestions and objections

received from the public.


CHAPTER – 5SCHEDULE OF PURCHASE, OWN GENERATION

AND ENERGY BALANCE


5.1 West Bengal State Electricity Distribution Co. Ltd. (WBSEDCL) has, with effect

from 1.4.2007, become a major deemed distribution licensee in the State and

has been entrusted with the responsibility to supply electricity to different

categories of consumers scattered throughout the State barring the licensed area

served by CESC Ltd., Durgapur Projects Ltd. and DPSC Ltd. Only a small part

of the energy requirement for supply to WBSEDCL consumers comes from the

hydro power stations in its ownership while the balance energy requirement for

distribution and supply in its licensed area is sourced by way of purchase.

Gross purchase of energy requirement during the year 2007-08 has been

assessed by the licensee to be 23,359.52 MU out of which the major quantum of

16,020 MU is proposed to be procured from thermal power stations from

WBPDCL including the power from upcoming units of Sagardighi Thermal Power

Station and Bakreswar (Unit 4 & 5) Thermal Power Station. From Central sector

generation 3,200 MU of energy is proposed to be procured from Thermal Power

Stations of NTPC, 680 MU has been assessed to be procured from Chukha &

Kurichhu (Bhutan) through PTC and 1,350 MU will be procured from Tala Hydro

Electric Power (Bhutan). From Rangit Hydro Electric Power (NHPC) 74 MU is

proposed to be procured and a total of 752 MU is proposed to be procured from

DVC which includes 62 MU of peak power. Balance requirement of energy is

stated to be procured from other state sector utilities like DPL, DPSCL and by

importing energy through traders. In addition to this green power from co-

generation, WBREDA etc. shall also be procured.



The planning for procurement of energy is said to have been done on the basis

of following factors:-

(i) Consumption under different categories of consumers estimated from the

trend of growth of consumption of respective categories.

(ii) Sale to CESC Ltd. and DPSC Ltd.

(iii) Sale to Govt. of Sikkim @ 20% of sent out generation from Rammam

Hydel Station Stage-II.

(iv) Sale of incidental surplus energy to others through competitive bidding.

(v) Estimated consumption & loss in distribution system of WBSEDCL.

(vi) Generation that may be available from its own generation.

5.2 The Commission has assessed requirement of energy intake of WBSEDCL from

the sources available in the State. The supply to be received by WBSEDCL from

DPL has been assessed at three different voltage levels of 132 KV, 33 KV and

11 KV. In regard to supply from DPSCL, purchase of energy at 18 different

locations has been considered. Supply to DPSCL at Bankola point has been

treated separately as sale of energy by WBSEDCL to DPSCL. Purchase of

power from Kolaghat, Bakreshwar, Bandel and Santaldihi Power Stations of

WBPDCL has been assessed by the Commission on the basis of energy sent out

from these power stations as allowed by the Commission in the tariff order of

WBPDCL for 2007-08. Power from upcoming power stations of WBPDCL, i.e.,

Bakreswar, Santaldihi and Sagardighi have been considered for a total quantum

of 2805.00 MU.



The requirement of energy intake from sources available in the State as

proposed by WBSEDCL and the quantum as allowed by the Commission are as

under:-

Sources Supply (MU)As projected by

WBSEDCLAs assessed by the

CommissionWBPDCL 16020.00 16833.13

DPL 718.00 384.24

DPSC Limited 160.00 160.00

Hooghly Metcoke 295.00 295.00

WBREDA 0.32 1.00Green Power & Cogen. 70.00 70.00

CESC Ltd. (Radial) 71.00

Total:17263.32 17814.37

5.3.1 Some of the objectors have objected to higher quantum of purchase from

external sources while operating the own plants of WBSEDCL at low PLF and

PAF. On the said issue one objector has appealed for rejection of proposal of

WBSEDCL for excess purchase.

The Commission has treated the PLF of hydel plants of WBSEDCL and their

availability separately under paragraph 5.4.4.

The Commission has considered the following additional factors in allowing the

quantum of power purchase requirement by WBSEDCL to meet its commitment

to supply electricity to its own consumers in 2007-08:-



(i) Need to supply to other distribution licensees of the State including supply

to meet the high peak requirement of these licensees after meeting the

peak requirement of the LT dominated own demand of WBSEDCL.

(ii) Full utilization of allocation from Central Sector.

(iii) Emergency procurement to meet the peak demand in its own licensed

area and Merit Order of purchase.

(iv) Additional requirement of energy for making the sale of incidental off-peak

surplus marketable. (The incidental surplus arises out of low system load

factor and high peak / off-peak ratio in thermal dominant WBSEDCL

system).

5.3.2 One of the objectors has objected to the purchase of power from DPSCL @

Rs.3.30 per unit and raised the question about the quantum of purchase from

DVC. The purchase of power by WBSEDCL radially from DPSCL and DVC is in

the process of being totally phased out by commissioning of newly constructed

Asansol 220 KV substation and the associated lines for taking over the entire

load in and around Asansol area. It has been reported that the work is in the

advance stage and is likely to be completed shortly. The Commission urges

WBSEDCL to complete the infrastructure to ensure that the demand in its

licensed area is met from state grid instead of through radial purchase.

The Commission has carefully examined the quantum of power purchase

allowed to WBSEB for 2006-07 and does not agree with the objectors view that

the quantum of power purchase allowed by the Commission for the year 2006-07



was higher than ‘actual’ power purchase of WBSEB in that year. The

Commission shall, however, in accordance with the provisions of the tariff

regulations take appropriate measure in this regard on getting actual audited

figures in future.

Some objectors have objected to the rate of purchase of wind power from

WBREDA. The Commission has noted that the purchase cost proposed by

WBSEDCL in the tariff petition is in accordance with WBERC Regulation

No.28/WBERC dated 04.05.2006. Some objectors have also suggested to

increase the purchase from renewable sources. The aforesaid regulation

specified by the Commission regulates the gradual rise of such purchase by each

licensee.

5.3.3 The following statement shows the purchase proposal put up by WBSEDCL and

the purchase programme approved by the Commission. The statement also

shows the source-wise cost of power purchase taking into consideration grid

loss, transmission charges, SLDC / ERLDC charges & other charges associated

with the purchase.

SCHEDULE OF PURCHASE

PARTICULARS As Projected As Found Admissible

MU Rs. Lakh MU Rs. Lakh(i) WBPDCL: (Existing)

(a) Kolaghat(b) Bakreswar(c ) Bandel(d) Santaldihi

(New Units)

6760.004200.001860.001150.002050.00

6957.243810.441991.761268.692805.00

131770.7267657.9341636.8125012.5053202.44

Total 16020.00 269861.01 16833.13 319280.40



(ii) DPL(a) 132 KV(b) 33 KV(c) 11 KV

565.00145.00

8.00

12372.373175.21

198.24

231.24145.00

8.00

5611.383518.64

194.13Total DPL: 718.00 15745.82 384.24 9324.15(iii) DPSC Ltd. 160.00 5280.00 160.00 5676.18

(iv) Hooghly Metcoke 295.00 5487.89 295.00 5487.88

(v) NTPC(a) Farakka(b) Talcher

2600.00600.00

Total 3200.00 53898.08 3200.00 53897.60

(vi) NHPC (RangitHydro)

74.00 1475.56 74.00 1475.56

(vii) PTC(a) Chukha Hydel(b) Kurichhu Hydel

530.00150.00

530.00150.00

Total PTC: 680.00 10889.52 680.00 10889.52

(viii) Tala 1350.00 24840.00 1350.00 24840.00

(ix) WBREDA 0.32 8.00 1.00 25.00

(x) DVC(a) 32 KV (Radial)(b) 33 KV (Radial)(c ) 11 KV (Radial)(d) Peak

46.00643.00

1.0062.00

21040.172045.57

690.0062.00

21040.172045.57

Total DVC: 752.00 23085.74 752.00 23085.74(xi) Govt. of Sikkim 0.20 7.44 0.20 7.44(xii) From Trader 40.00 1944.00 40.00 1944.00(xiii) Green Power(Electro Steel)

70.00 1771.00 70.00 1771.00

(xiv) CESC Ltd. (Radial) 71.00 1889.00Gross Total: 23359.52 414294.06 23910.57 459593.47

Less : CTS Grid Loss: 208.00 206.33Nett Purchase & cost 23151.52 414294.06 23704.24 459593.47



Add: Other costs associatedwith purchase

(a) Transmissioncharges

(b) SLDC/ERLDC &other charges

(c) Wheeling Chargesto CESC/DVC

7146.00

216.96

2.00

7146.00

Less: Rebate for timelypayment on purchasecost 1555.14 1555.14

Grand Total: 23151.52 420103.88 23704.24 465184.33

Average(P/kwh) 196.24

5.4.1 In the next few paragraphs the Commission gives its views on the generation of

power by WBSEDCL from its own sources and draws an energy balance taking

into consideration the purchase requirement as provided in the previous

paragraphs, sale to persons other than the licensees and consumers, supply of

power to other state utilities and admissible transmission and distribution losses.

5.4.2 Part of the total requirement of power is met from the generation at the hydel

power stations of WBSEDCL. Besides hydel power stations, WBSEDCL will also

avail power from the Purulia Pump Storage Project which is in the advance stage

of construction. In addition to this a diesel generating station at Rudranagar in

Sagar Island is also programmed to generate to supply the load in that area with

supplementary support from non-conventional energy sources (solar power).

Gas Turbine stations at Kasba, Haldia and Siliguri totaling 90 MW capacity which

were built to mitigate the peak shortage and to meet the emergency requirement

are now stated to be in defunct condition due to normal wear & tear. No

generation from these power stations and no cost for these power stations have

been considered for the year 2007-08. The Commission has noted that fixed



assets of the aforesaid gas turbine stations are depreciated almost upto the level

of residual value and hence there is insignificant implication of keeping these

stations out of operation in the revenue requirement of WBSEDCL.

5.4.3 Estimated generation from own generating stations of WBSEDCL has been

shown as under:-

Unit PLFIn %

GrossGeneration

(MU)

AuxiliaryConsumption

(MU)

EnergySent out

(MU)Jaladhaka 45.66 140.00 1.25 138.75

Rammam 49.24 220.00 1.55 218.45

Teesta 16.91 100.00 1.00 99.00

Fazi 9.51 2.00 0.03 1.97

Little Rangeet/ Bijanbari

45.66 6.00 0.06 5.94

Rinchinton 39.95 7.00 0.06 6.94

Mangoo -Kalikhola

45.66 12.00 0.05 11.95

Purulia P.S.P.Generation

17.45 860.00 6.00 854.00

Total : 1347.00 10.00 1337.00

Generationfrom dieselstation

0.64 - 0.64

Grand Total : 1347.64 1337.64

5.4.4 The objectors have attributed the reason of higher purchase from external

sources to the low PLF in the own hydro power stations of the licensee. The

objectors have proposed to consider higher PLF and availability factor for these

power stations of WBSEDCL while computing the tariff for 2007-08.



It has been observed that for Jaldhaka HEP, the petitioner has projected a PLF

of 45.66% for 2007-08 which is lower than both the actual PLF attained in 2005-

06 and estimated PLF of 2006-07. The licensee has not given any valid reason

for projection of such a PLF. The Commission also cannot allow such gradual

erosion of performance without any valid reason. The Commission, therefore,

disallows projected PLF of 45.66% for 2007-08 and has considered a PLF of

49% for Jaldhaka H.E.P which in the view of the Commission is achievable

during the year 2007-08 with normal monsoon. The PLF of Teesta Canal Fall

has also been considered at 17.2% rejecting the estimated PLF of 10.15% for

2006-07. Regarding Plant Availability Factor the Commission urges the licensee

to carry out all maintenance & overhauling work during low-hydro period so that

effective availability during high-hydro period improves. On the basis of above

reasoning the Commission has considered the generation from own generating

plants of WBSEDCL as follows:-

Unit PLFIn %

GrossGeneration

(MU)

AuxiliaryConsumption

(MU)

EnergySent out

(MU)Jaladhaka 49.00% 149.00 1.25 147.75

Rammam 49.25% 221.00 1.55 219.45

Teesta 17.20% 101.00 1.00 100.00

Fazi 9.51% 2.00 0.03 1.97

Little Rangeet / Bijanbari 45.66% 6.00 0.06 5.94

Rinchinton 39.95% 7.00 0.06 6.94

Mangoo - Kalikhola 45.66% 12.00 0.05 11.95

Purulia P.S.P.Generation

17.45% 860.00 6.00 854.00

Total : 1358.00 10.00 1348.00



Generation from dieselstation

14.60% 0.64 NIL 0.64

Grand Total : 1358.64 1348.64

5.5.1 After considering the projection of energy purchase and the projection of energy

availability from own generation, the Commission is to examine the energy

balance as it comes out of the submission of WBSEDCL as under:-

All figures in MU

1 Total Energy purchase at 400 / 220 / 132 KV 22332.25

2 Less: Grid loss for CTU 208.00

3 Sent out Energy from Hydel Power Stations and injectedto STS at 132 KV 483.00

4 Sent out Energy from PPSP and injected to STS at 400 KV 850.00

5 Total Energy injected to STS : 23457.25

6 Transmission Loss in MU @ 4% 939.25

7 Energy Transmitted to WBSEDCL (MU) 22518.00

8 Energy Input to WBSEDCL from WBSETCL (MU) 22518.00

9 Energy Purchase at 33/11 KV & Generation at 11 KV (MU) 1027.91

10 Energy Available in the System (MU) 23545.91

11 Unit Exported (MU) 5075.00

12 Sale to Sikkim (MU) 80.00

13 Sale to CESC Ltd. & DPSC Ltd. (MU) 945.00

14 Loss for CESC Ltd. & DPSC Ltd. (MU) 41.41

15 Unit used for pumping energy to PPSP (MU) 1130.00



16 Additional Units allowed against pumping energy (MU) 35.00

17 Additional Units to be allowed by Commission forwheeling of power through CESC Ltd. system (MU) 4.74

18 Total Energy goes out of system (MU) 7311.15

19 Net Energy in System (MU) 16234.76

20 Units sold to consumers (MU) 12896.00

21 Units utilized in own premises including constructionpower (MU) 36.00

22 Overall Utilisation (MU) 12932.00

23 Distribution Loss in MU 3302.76

24 Distribution Loss in % 20.34

5.6 In regard to the energy sourced from own generation and net purchase the

same has already been viewed earlier. Each of the components in the energy

utilisation part is being analysed with views hereunder one by one.

5.6.1 Sales to own consumers:

In view of revocation of distribution license of Singur Haripal Rural Electric

Cooperative Society Ltd. (SHRELCOP), WBSEDCL is acting as an administrator

of the utility SHRELCOP w.e.f. 1.4.2007. The total projected consumption of

different categories of consumers of the said Society has, therefore, been

clubbed in the projected consumption of WBSEDCL for the respective

categories. The entire requirement of energy of the Society has been proposed

to be met by WBSEDCL. The total sales during 2007-08 to different categories

of consumers have been projected to be 12,896 MU with the following break up.



Voltage of Supply Category Projectedconsumption

in MU(a) L & MV supply

(i) Domestic 4260.00

(ii) Commercial 885.00(iii) Industrial 854.00(iv) PW Works 92.00(v) Irrigation / Agriculture 950.00(vi) Public Lighting 95.00

Sub-total (a) 7136.00(b) HV & EHV supply

(i) Domestic 14.00(ii) Non Industrial & Others 724.00(iii) Industrial 4337.00(iv) Traction 685.00

Sub-total (b) 5760.00TOTAL SALE TO OWNCONSUMERS (a + b) 12896.00

The total sales of 12896 MU during 2007-08 to different categories of consumers

show rise of 10.63% over the total estimated sale during 2006-07 and 21.35%

increase from level of sales during 2005-06. The Commission considers such

growth rate rational in the existing circumstances and urges the licensee to

complete 100% metering arrangement expeditiously to record higher growth rate

of sale of energy. The Commission agrees with the projected sales of 12896 MU

for the year 2007-08.

5.6.2 WBSEDCL has projected 36 MU as consumption at its own premises including

the construction power. Actual figure for such consumption for 2005-06 was 30

MU and the estimated figure for 2006-07 was 34 MU. The Commission finds the

requirement of 36 MU for own consumption reasonable and agrees with the

projected figure.



5.7 Transmission & Distribution (T&D) Loss:

5.7.1 The loss in the distribution system of WBSEDCL has been projected by the

licensee at the level of 20.34% for the year 2007-08. Assuming 4% transmission

loss in the transmission system of WBSETCL the energy output from WBSETCL

gets reduced by 4% and enters WBSEDCL system as input. 20.34% distribution

loss as claimed by the licensee at that lower input energy base is equivalent to

19.53% distribution loss when converted into the same base energy for input of

WBSETCL. But some of the objectors have inferred that with 4% transmission

loss in WBSETCL System & 20.34% Distribution loss as claimed in WBSEDCL

System total loss in the combined systems of WBSETCL & WBSEDCL (which is

equivalent to erstwhile WBSEB System) adds upto 24.34%. The Commission

does not agree with such inference as the same is based on a wrong method of

calculations. The Commission is of the view that the T&D loss as projected in

combined systems of WBSEDCL & WBSETCL is equal to (19.53 + 4)% =

23.53%, due to the reasons already discussed.

5.7.2 The Commission has received many observations and objections from almost all

the objectors in respect of the T&D loss that should reasonably be allowed to the

licensee. These objectors have suggested various levels of lower percentage for

T&D loss for determining the tariff. Some of the objectors have linked the T&D

loss with rebate allowed on energy charge and have proposed higher percentage

of rebate in order to compensate for high T&D loss. The Commission has

carefully considered all the observations made by the objectors and has taken

note of the suggestions made by the objectors to contain the rate of T&D loss to

a reasonable level. The licensee in their petition has on the other hand tried to

explain that, due to severe financial constraints of the past years proper

infrastructure as warranted by prudent utility practice could not be developed.

Moreover, due to massive programme of rural electrification under APDRP and



RGGVY schemes, extensive LT supply has given rise to the higher growth in LT

category causing further deterioration of HT / LT ratio. The question before the

Commission therefore is as to what extent the T&D loss in the system of

WBSEDCL can be allowed for recovery from the consumers for the year 2007-08

and at the same time maintain a reasonable balance between the interest of the

consumers and the licensee.

5.7.3 For the purpose of energy balance the Commission allowed 23% T&D loss for

2006-07 for WBSEB system which was bifurcated during restructuring of WBSEB

into the transmission system of WBSETCL and distribution system of WBSEDCL.

The T&D loss of 24.7% has been projected by WBSEDCL in the combined

system of WBSETCL & WBSEDCL in 2007-08 considering 20.34% distribution

loss in the WBSEDCL system. The Commission does not agree to projected

20.34% of distribution loss and allows 19.50% as distribution loss for WBSEDCL

system. The Commission, however, has not taken any view on the programme of

reduction of T&D loss during the next five years as submitted by WBSEDCL in

the tariff petition in pursuance of the Directives of the Commission issued in the

tariff order for 2006-07. The Commission has already engaged consultants in

this regard whose report is expected shortly. The Commission will take a view

on the programme of reduction of T&D loss thereafter.

5.8 Bulk supply to other licensees:

The other licensees in the State who were traditionally receiving bulk supply of

power from WBSEB, the erstwhile licensee, are CESC Ltd., DPSC Ltd. and



SHRELCOP. Since the distribution license of SHRELCOP has been revoked

and WBSEDCL is acting as administrator the total projected consumption of

different categories consumers of the said Society have been clubbed in the

projected consumption of the identical categories of erstwhile WBSEB. The

supply of energy to DPSC Ltd. at 33 KV at Bankola has been treated as sale of

energy by WBSEDCL to DPSC Ltd. totally de-linking this sale from purchase of

power from DPSC Ltd. by WBSEDCL at 18 different locations near and around

Asansol. WBSEDCL has considered a sale of 45 MU of energy to DPSC Ltd.

DPSC Ltd. in its tariff petition has projected 40.83 MU as its purchase quantum

from WBSEDCL at Bankola. Commission has taken a view to take into

consideration the purchasers requirement in this regard and accepts 40.83 MU of

energy as sale of WBSEDCL to DPSC Ltd. in 2007-08. On the basis of present

trend of drawal of CESC Ltd. at four different points the consumption of CESC

Ltd. during 2007-08 has been projected to be 900 MU. CESC Ltd. on the other

hand has projected a requirement of 1351 MU of energy for purchase from

WBSEDCL in 2007-08. The Commission after full analysis of requirement of

CESC Ltd. considers 1299.36 MU of energy as sale of WBSEDCL to CESC Ltd.

during 2007-08. Considering 74 MU of energy for supplying to CESC Ltd.

radially, total sale to CESC Ltd. comes to 1373.36 MU. The Commission also has

assessed the requirements of DPL to take supply from WBSEDCL during the

period before its 300 MW unit is commissioned. Such requirement will be 184.00

MU.

The Commission is of considered view that the demand of bulk supply to other

licensees in the State should be met first by WBSEDCL. After meeting the

energy requirement of its own consumers and the requirement of aforesaid

licensees of the State, the residual energy which would be available shall be

utilized for sale to person other than the licensees and own consumers.



The quantum of bulk supply to the licensees in the State, thus is considered, as

under:-

M.U

DPL 184.00

CESC Ltd. 1373.36

DPSC Ltd. 40.83

Total : 1598.19

In addition to the above quantity, WBSEDCL will be supplying 43.69 MU to

Sikkim under the existing agreement. The total of such bulk supply, thus, comes

to 1641.88 MU.

5.9 Supply of pumping energy to P.P.S.P:

Purulia Pump Storage Project with the installed capacity of 900 MW is nearing

completion. This project will absorb off-peak surplus of the system in its pumping

mode and will generate 900 MW of peak power when fully commissioned. The

project will contribute 1700 MU per year. In the year 2007-08 gradually all the

units are expected to be commissioned and total sent out energy to be available

from PPSP during 2007-08 has been projected at 850 MU. As per the design

data the energy requirement at the 400 KV bus bar at P.P.S.P for pumping mode

operation is 1130 MU.

5.9.1 One of the objectors in its objection has argued that the proposal of WBSEDCL

to procure 850 MU of energy in 2007-08 by purchasing 1130 MU of energy for

use in pumping mode is uneconomical and hence Rs.52.64 crore as the cost of

excess power purchase on this account be disallowed. The Commission after

carefully considering the objection rejects the same inspite of the fact that the

inherent characteristic of a pump storage project is such that it consumes more

than the delivered energy. It is important to note that energy supply to PPSP is



for utilization of off-peak surplus for the purpose of meeting the peak shortage

and is one of the recognized methods of indirect short time storage of electricity.

The ability of the pump storage plant to quickly change over from pumping mode

to generation mode with the facility for fast loading makes this type of generation

particularly useful for meeting grid emergency. Further, it is impossible to

overlook the latent financial benefits of PSPP. It must be noted that the cost of

peak power is rising fast and availability of peak power from external sources has

been coming down sharply due to all out peak shortage all over the country. In

the meantime U.I rate has already been enhanced by CERC. All this signifies

that peak power is going to be costlier than it is now, and for quite some time to

come, it may well continue to be so. On the other hand, off peak power is and will

be considerably cheap. Therefore, obtaining peak power in lieu of off peak power

should yield favourable financial results. Moreover, full requirement of energy for

PPSP is less than 10% of total purchase of WBSEDCL in 2007-08 and the

impact on cost will be marginal keeping in view the advantage of meeting the

peak and trend of rise in total purchase quantum of energy in future years. Some

objectors have also objected to the projected figure of auxiliary consumption of

P.P.S.P. The Commission will review the requirement in due course when actual

quantum of pumping energy utilized in PPSP and its auxiliary consumptions are

available.

5.9.2 Under the circumstances, the considered view of the Commission is that proper

utilization of PPSP will help in reducing peak shortage, will facilitate purposeful

utilization of thermal capacity and will assist in protecting the consumers’ interest

in equitable supply of power during peak and off peak. The Commission

therefore, does not agree with the opinion of the objector that energy from PPSP

is uneconomical.

For the year 2007-08 the Commission accepts the figure of supplying 1130 MU

of energy for use in pumping mode and 6 MU of energy for auxiliary



consumption. However, the Commission does not agree with the 35 MU of

projected energy as additional units against pumping energy for 2007-08.

5.10 Energy Balance:

Based on the analysis done in the preceding paragraphs and decisions recorded

hereinabove, the Energy Balance for WBSEDCL for the year 2007-08 is drawn

as follows:

ENERGY BALANCE

Sl.No. Particulars MUA. ENERGY INPUT TO THE DISTRIBUTION SYSTEM

1. Gross energy from Central Sector allocation for WBSEDCL 5304.002. Energy loss in Central Transmission System @ 3.89% 206.333. Net energy injected from C.S into WBSETCL (1-2) 5097.674. Net energy injected into WBSETCL against purchase from State

sources & traders17507.57

5. Net energy injected into WBSETCL from own generation 1348.646. Total energy injected into WBSETCL (3+4+5) 23953.887. Transmission loss in WBSETCL @ 4% 958.158. Net energy available in WBSETCL (6-7) 22995.739. Energy outgo from WBSETCL transmission system to

a) CESC Ltd. 1299.36b) Sikkim (as per contract) 43.69c) DPL 184.00d) PPSP 1130.00e) Persons other than licensee of the State &

own consumer 5229.7210. Total energy outgo from WBSETCL (sum a : e) 7886.7711. Energy input from WBSETCL to WBSEDCL (8-10) 15108.9612. Energy injected directly to WBSEDCL at 33 KV & below 1099.0013. Total energy available in WBSEDCL own system (11+12) 16207.96

B. ENERGY UTILISATION IN WBSEDCL SYSTEMa) Units sold to own consumers 12896.00b) Units sold to DPSC Ltd. 40.83c ) Units sold to CESC (Radial) 74.00d) Units utilised in own premises including construction power 36.00e) Un-utilised units (Distribution loss @ 19.5%) 3161.13

Total energy (sum a: e) 16207.96



5.11 If the abnormal power loss can be plugged through the measures taken /

proposed to be taken by WBSEDCL, the target of normative sale should be fully

achievable.

5.12 The power purchase cost as allowed in the present order is subject to periodical

adjustment in terms of the formula for Fuel & Power Purchase Cost Adjustment

(FPPCA) as specified in relevant regulations.


CHAPTER –6FIXED CHARGES


6.1 The projected amount of total fixed charges, as per the submission of WBSEDCL

comes to Rs.210111.16 lakh. This amount is net of the capitalization of the part

of the expenses under different heads chargeable to ongoing capital

construction works. The total income to be generated from the different non-tariff

sources has been estimated to be Rs.16805.24 lakh. Hence, the net amount of

fixed charges proposed to be built in the tariff recoverable from the consumers

and for bulk supply of energy to other licensees of the State comes to

Rs.193305.92 lakh. The amount of fixed charges to be recovered from the

consumers has, however, been proposed to be reduced by 90% of the gains to

be derived by the applicant from the sale of energy by it to the persons other

than the licensees and consumers in terms of the Commission’s Tariff

Regulations. Such amount of benefits to be passed on to the consumers has

been estimated to be Rs.76067.86 lakh. The Commission has taken up a

prudent analysis of the expenditures/ charges under different heads with

reference to the reasonableness.

6.2 Employees’ Cost

The total amount of employees’ cost projected for the year 2007-08 is

Rs.36954.32 lakh with the following break-up:

Rs. in lakh

Generation 1235.77

Distribution 35718.55

Total 36954.32

The projected amounts include the provision for contributions to employees’

terminal benefits funds like PF and gratuity.



The Commission has viewed the amount of projected expenditure with reference

to the actual expenditure incurred by the erstwhile WBSEB in 2005-06 i.e., prior

to it’s re-structuring for all three functions of generation, transmission and

distribution. The actual expenditure was for a total amount of Rs.42476.00 lakh.

The estimated expenditure during 2006-07 is Rs.48255.29 lakh considering

WBSETCL and WBSEDCL together as against projected expenditure of

Rs.4839.03 lakh and Rs.36954.32 lakh respectively. It, therefore, comes out that

the projected expenditure towards employees’ cost considering two successor

companies of erstwhile WBSEB, is considerably less than the actual expenditure

of 2005-06 and also of the estimated expenditure of 2006-07. This is mainly due

to creation of a separate employees’ terminal benefit fund through Bonds to take

care of the earlier liabilities in this regard. The Commission finds the projected

expenditure under the referred head justifiable and admits the same.

6.3 Repairs and Maintenance

The projected expenditure towards Repairs & Maintenance for the generation

and a distribution function of WBSEDCL is as under:

Rs. in lakh

Generation 669.50


Total 9441.22

There is marginal difference in the figures of Rs.9448.19 lakh in this regard taken

by the applicant in the projected statement of Summarized Revenue

Requirement. The comparative actual expenditure figure for the year 2005-06 in

respect of WBSEDCL is not separately available. The Commission, therefore,

has based its analysis on the estimated expenditure in the base year, i.e., 2006-

07. The instant tariff revision application has been filed by WBSEDCL after



completion of the financial year 2006-07 and hence the figures of estimated

expenditures can be termed as un-audited actuals. Such un-audited actual

repairs and maintenance expenses for generation function for the aforesaid

previous year was Rs.796.59 lakh as against which the applicant has asked for

Rs.669.50 lakh for the year 2007-08. The Commission admits the same. So far

as distribution function is concerned, the un-audited actual expenditure in the

year 2006-07 came to Rs.8751.03 lakh. A marginal increase on this score in

2007-08, is, in the considered opinion of the Commission, justifiable in view of

the additions in the distribution networks over the year. The total expenditure

towards repairs and maintenance (including cost of consumables) for the year

2007-08 is, thus, admitted for Rs.9440.22 lakh.

6.4 Rent, Rates & Taxes

The amount claimed towards Rent, Rates & Taxes (other than the tax on income

and profit) in the statement of Summarized Revenue Requirement) is for

Rs.615.45 lakh. The amount so claimed is not supported by the details of

function-wise expenditures statements submitted in Format 1.12, 1.15 and 1.17.

Based on the information provided to the Commission in Form 1.17 (other

expenses centrally maintained), the expenditures on this account are admitted as

under:

Rs. in lakh

Generation 1.93

Distribution 78.59

Total 80.52

6.5 Legal Expenses

The estimated legal expenses during 2006-07 for the generation function and

distribution function are for Rs.2.10 lakh and Rs.83.92 lakh respectively. Allowing



average 5% increase, we admit for a total amount of Rs.90.32 lakh for the year

2007-08 as against Rs.158.67 lakh claimed in the Statement of Summerised

Revenue Requirements.

6.6 Audit Fees

The amount of Rs.93.50 lakh towards audit fees claimed by WBSEDCL is

considered admissible. In this regard, it is to mention that WBSEDCL is a newly

formed Government Company and its accounts will be subject to audit by a firm

of Chartered Accountants as well as by the office of the Comptroller and Auditor

General of India in terms of the provision of the Companies Act. It may also have

Cost Audit like other companies in the power business, if so notified by the

Company Law Board. The provision of audit fees and expenses as projected by it

and admitted is likely to fall short of the requirements. It is, therefore, stipulated

that WBSEDCL may ask for the reimbursement of the shortfall in this regard at

the time of subsequent tariff revision.

6.7 Other Administration and General Charges

As we get from the submissions of WBSEDCL, the amount projected towards

other administration and general charges comes to Rs.6646.22 lakh with the

following function-wise break-up:

Rs. in lakh

Generation 330.91


Central overhead 1299.39

Total 6646.22

The projected amount is to meet the expenses under a number of heads of

expenses like traveling and communications, security, general establishment



insurance etc. The Commission has viewed the projection with reference to the

expenditures incurred by erstwhile WBSEB during 2006-07 for the generation

and distribution functions. It has been observed that for these two functions, total

general and administration charges comes to Rs.6374.94 lakh in the base year,

i.e., 2006-07. In the considered opinion of the commission, a 4% increase on the

amount allowed in 2006-07 should be adequate for this purpose in 2007-08. The

Commission thus admits an amount of Rs.6630.00 lakh for 2007-08.

6.8 Interest & Finance Charges

(a) Interest on Borrowed Capital

WBSEDCL, as a new entity, is to take over the business of distribution and

hydro-power generation of former WBSEB, inherited an amount of

Rs.302200.00 lakh as borrowed capital as on 31st March, 2006 as shown in

Schedule – B of the West Bengal Power Sector Reform Transfer Scheme,

2007 notified by the Government of West Bengal vide No: 12-PO/III/3R-

29/2006 dated 25.01.2007. Out of this amount of Rs.302200.00 lakh,

Rs.194800.00 lakh was from the Government of West Bengal carrying

interest @ 8.5%. The balance amount of Rs.107400.00 lakh is from different

financial institutions and Central Government through CEA. WBSEDCL

becomes functional with effect from 1st April, 2007. The subsequent

transactions relating to repayments of borrowings, drawal of fresh borrowing

and payments of interest during 2006-07 were, therefore, carried out in the

books of former WBSEB. As it comes out from the submission of WBSEDCL,

the position of the outstanding balance of total capital borrowing as on the

date of its starting function i.e., on 1st April, 2007 is as under:



Rs. in lakh

Particulars FromGovt. of

W.B

Fromothers

Total

a) Outstanding balance as on31.03.2006

194800.00 107400.00 302200.00

b) Repayment during 2006-07 byWBSEB

- 13907.00 13907.00

c) Fresh borrowings during 2006-07by WBSEB

34602.00 19237.00 53839.00

Outstanding balance as on 1st April,2007 (a-b+c)

229402.00 112730.00 342132.00

With the above reconciled position of outstanding balance of borrowings at

the beginning of the year, WBSEDCL has submitted its projections of

repayment of borrowings, programmes for fresh borrowing as well as the

chargeable amount of interest which are as under:

Rs. in lakh

Particulars FromGovt. of

W.B

Fromothers

Total

a) Balance at the beginning of theyear

229402.00 112730.00 342132.00

b) Repayment during 2007-08 8154.00 15936.00 24090.00

c) Fresh borrowing 47004.00 31825.00 78829.00

Balance outstanding at the end of2007-08

268252.00 128619.00 396871.00

The amount of total chargeable interest on the above borrowings, taking the

projected repayment and fresh borrowings schedules in view, works out to



Rs.31571.00 lakh. Most of the outstanding balances of borrowing at the

beginning of the year as well as the projected fresh borrowings relate to the

capital construction works-in-progress. It has been estimated that 52.89% of

the chargeable interest will be capitalized and the balance 47.11% amounting

to Rs.14873.00 lakh will be in the revenue account. After detailed scrutiny of

the data submitted, we admit the amount as claimed by the applicant for

working out the Aggregate Revenue Requirement (ARR).

(b) Interest on Bonds for Terminal Benefits to Employees

Under the West Bengal Power Sector Reforms Transfer Scheme, 2007, as

referred earlier, a 8.5% bond fund (2016) has been created for discharging

pension and gratuity liabilities of the erstwhile WBSEB. An amount of Rs.

1530.00 crores of the total bond amounts of Rs. 1800 crores has been kept

in the account of WBSEDCL. The annual interest charges on this amount of

bonds in the accounts of WBSEDCL come to Rs. 13005.00 lakh and the

same is admitted for ascertaining the Aggregate Revenue Requirement

(ARR) for the year 2007 – 2008.

(c) Interest on Security Deposits

The interest accrual on the amount of consumers’ security deposits has been

estimated to be Rs. 3618.35 lakh and the same is admitted.

(d) Other Finance Charges

The estimation of other finance charges as submitted by WBSEDCL in

prescribed format 1.17(c) is for a total amount of Rs. 2186.93 lakh. It has

been observed that an amount of Rs. 718.87 lakh has been considered in the

estimation towards fees and expenses for restructuring, but what type of

restructuring is contemplated has not been clarified. Restructuring of WBSEB

and the formation of the successor entities have already been over and no



expenditure in this regard is likely to be done during 2007 – 2008. In the

absence of any clarification, we are not admitting this projected expenditure.

The other finance charges we admit for a total amount of Rs. 1468.06 lakh

only.

(e) Interest for Working Capital

In terms of Regulation No. 4.6.5.1 of Tariff Regulations, 2007, the working

capital requirement of the licensee requires to be assessed on normative

basis @ 18% of the estimated annual sales revenue reduced by the amount

of depreciation, deferred revenue expenditure and returns. The entitlement of

WBSEDCL for interest on working capital, if computed in terms of referred

regulations, will be around Rs. 9000.00 lakh As observed by us in paragraph

6.8(a), the outstanding balance of borrowings from the Government of West

Bengal at the beginning of the financial year 2007 – 2008 was Rs. 229402.00

lakh. It has been stated by WBSEDCL that the detailed categorization of this

amount of outstanding balance of borrowing from the State Government

could not be analyzed and made available. In the absence of requisite

information in this regard, we feel that part of the total borrowing from the

State Government bearing 8.5% interest up to the end of 2006 – 2007 is

towards meeting working capital needs. Accordingly, we allow interest on

working capital for an amount of Rs. 7060.00 lakh as claimed. WBSEDCL is,

however, directed to come up with proper information in its next tariff revision

application categorizing the borrowing from different sources into capital

constructions and working capitals.

6.9 Depreciation

Depreciation on fixed assets as worked out by WBSEDCL with reference to Tariff

Regulations, 2007, comes for a total amount of Rs. 21761.00 lakh with the

following asset category wise break-up:



Rs. in lakh

Generation 5664.00


Total 21761.00

The computations are based on projected capitalization of additional fixed assets

of Rs. 255824.00 lakh and Rs. 141342.00 lakh for generation and distribution

respectively. The Commission presently admits the amount of depreciation as

claimed with the stipulations that any variation in the amount of chargeable

depreciation due to variations in the projected amount of the capitalization or the

date / dates of additional capitalization will be suitably adjusted at the time of

subsequent tariff revision.

6.10 Intangible Assets Written Off

The amount of Rs. 40.23 lakh as projected towards written off Intangible Assets,

being part of the amount spent for formation of the company, is admitted.

6.11 Provision for Bad Debts

In terms of the Tariff Regulations, 2007, the applicant may be allowed provision

for Bad Debts for the amount as actually had been written off in the latest

available audited accounts subject to a ceiling of 0.5% of the annual gross sale

value of energy in the current year, i.e., 2006 – 07. It has been seen that an

amount of Rs. 430.00 lakh was written of in the accounts for the year 2005 – 06

(copy of which was submitted along with the instant tariff revision application)

and the same being less than 0.5% of the estimated sales revenue, is admitted.

6.12 Income Tax

WBSEDCL has asked for Rs. 171.00 lakh towards fringe benefit tax under the

provision of Income Tax Act. As has been seen in Schedule – 17 to the Accounts



for the year 2005 – 06, an amount of Rs. 238.38 lakh was provided towards

liabilities in this regard. We admit the amount actually provided, i.e., Rs. 238.38

lakh in this account.

6.13 Fixed Charges for Singur – Haripal Rural Electric Co-operative Society Ltd.

6.13.1 Singur – Haripal Rural Electric Co-operative Society Ltd. (hereinafter referred to

as SHRELCOP) had been a distribution licensee operating in the Singur and

Haripal area in Hooghly District. The license of SHRELCOP was revoked with

effect from 31st December 2005 and as an interim measure, erstwhile WBSEB

was appointed as Administrator and was ordered to continue to act in that

capacity until further orders. That function has got vested to the WBSEDCL, the

successor entity taking over the distribution business of erstwhile WBSEB. In the

instant tariff revision application, WBSEDCL has considered the energy supply

requirement for the areas that had been under the operation of SHRELCOP and

has drawn its energy purchase programme accordingly. WBSEDCL has also

clubbed the consumer base of the said area with its own consumer base for the

recovery of tariff revenue. It is, therefore, necessary to allow the reasonable fixed

charges relating to SHRELCOP that WBSEDCL will be required to incur as the

Administrator.

6.13.2 WBSEDCL has submitted the following estimation of the fixed charges as will be

requiring to incur by it for SHRELCOP.

Rs. in Lakh

a. Employees cost 250.00

b. Repairs & Maintenance 136.66

c. Rent, Rates & Taxes 0.71

d. Legal Charges 1.66

e. Audit Fees 0.19

f. Other Administration & General 60.00



expenses

g. Depreciation 46.69

Total 495.69

WBSEDCL has also submitted that the total estimated expenditures under the

above heads during 2006 – 07 will be Rs. 455.56 lakh.

It has, however, been observed that WBSEDCL has missed to mention the

amount of income to be derived from other non-tariff sources. Such incomes are

to come from meter rentals, other service charges recoverable from the

consumers and interest on investments made by SHRELCOP in the form of fixed

deposits with the banks. It has also not asked for interest payable for the capital

loan obtained by SHRELCOP from REC. In its tariff order dated 8th May 2006 for

the year 2006 – 07, the Commission made an estimation of the amount of

interest payable on the borrowed capital and non-tariff income from other

sources for Rs. 21.76 lakh and 225.00 lakh respectively and considers to keep

those provisionally at that level for the year 2007 – 08 also.

6.13.3 Summarizing our findings above, the revenue requirement in regard to

SHRELCOP for the year 2007 – 08 are admitted as under:

Sl No Particulars Rs. in lakh

Estimated Expenditure for 2006 – 07 (as submitted)

i) Employees cost 203.67

ii) Repairs & Maintenance 130.15

iii) Rent, Rates & Taxes 0.68

iv) Legal Charges 1.58

v) Audit Fees 0.18

vi) Other Administration & General expenses 51.93

Total 388.19



Add: Average 5% increase for the year2007 – 08

19.41

Total 407.60

vii) Interest on loan capital 21.76

viii) Depreciation 46.69

Gross Revenue Required 476.05

Less: Income from other sources 225.00

Net Revenue Required 251.05

WBSEDCL is, however, to ensure that scheduled loan repayment obligations of

SHRELCOP are met out of the amount of depreciation allowed.

6.13.4 The Commission has carefully taken notes of the different points raised by some

of the objectors to the tariff proposals of WBSEDCL in regard to SHRELCOP.

The Commission is to make it clear that the reasonable amount of revenue

expenses that are needed to be incurred by WBSEDCL as an administrator are

only allowed to it in view of the fact that the income to be derived from sale of

energy to the consumers of SHRELCOP has been merged with such income of

WBSEDCL. No part of the liabilities of SHRELCOP prior to the date of appoint of

the administrator has been considered to be built in the tariff of WBSEDCL.

6.14 Reserve for Unforeseen Exigencies

The original cost of fixed assets at the beginning of the year 2007 – 08, as per

the submission of WBSEDCL, is Rs. 68416.00 lakh for generation and

391415.00 lakh for distribution services. The provision for the reserve for

unforeseen exigencies @ 0.25% works out to Rs. 171.04 lakh for generation and

Rs. 978.54 lakh for distribution totaling to Rs. 1149.58 lakh. The Commission

allows the same in terms of Tariff Regulations, 2007. The applicant was allowed



an amount of Rs. 1746.00 lakh towards such provision in the year 2006 – 07.

With the admission of Rs. 1149.58 lakh for the year 2007 – 08, the total provision

for such reserve for unforeseen exigencies comes to Rs. 2895.58 lakh and

amount is less than the ceiling of 5% of the gross value of assets. As some of the

objectors raised this issue, it is felt necessary to clarify that the amount of reserve

is not a part of the return allowable to the licensee. In terms of the Tariff

Regulations, 2007, the sums so appropriated need to be invested by the licensee

prudently in securities which can only be drawn with prior approval of the

Commission to take care of unforeseen exigencies. The income from the

investment of funds in this regards are considered for making adjustment with the

amount of ARR of the licensee

6.15 Special Allocation

WBSEDCL has asked for special allocation on the following accounts:

Rs. in Lakh

(a) Part of the amount of short recovery of 2273.00Dues from SHRELCOP

(b) Release of the part of interest on borrowings 3185.00Disallowed in 2004 - 05

(c) Release of the part of ARR withheld 4973.20In 2004 – 05

Total 10431.20

The Commission feels it prudent to clarify the position separately for each of the

above items for which special allocations has been asked for in the year 2007 –

08.

(a) Short Recovery of Dues from SHRELCOP

An amount of Rs. 3014.00 lakh in total was the short recovery of revenue by

erstwhile WBSEB from Singur Haripal Rural Electric Co-operative Society



Limited (SHRELCOP) for the years 2003-04, 2004-05 and 2005-06 by virtue

of Commission’s orders in this regard. The license of SHRELCOP, as a

distributor, had been revoked and WBSEDCL, as the successor entity of

WBSEB, is presently functioning as Administrator of the affairs of

SHRELCOP. It has asked for a part of such short recovery of revenue to be

considered to be compensated through tariff for the year 2007 – 08. In this

regard, the Commission observes that the payment due to WBSEDCL, as a

successor entity of erstwhile WBSEB, is a liability on the part of SHRELCOP

and is to be accounted for as such by it in its books of accounts. The ability of

SHRELCOP to discharge this liability has not been finally assessed. The

Commission, therefore, does not consider allowing any part of the stated

liability of SHRELCOP to be built in the tariff of WBSEDCL. The Commission

has also taken note of the objections made by some of the objectors to the

tariff proposal of WBSEDCL on this issue.

(b) Release of the part of interest on borrowing disallowed in 2004 – 05

The Commission, while passing the tariff order for the year 2004 – 05,

deducted an amount of Rs. 63996.00 lakh from the revenue requirements of

erstwhile WBSEB towards excess interest allowed in the earlier years.

Paragraph 15.3.6 of the Commission’s combined tariff order dated 9th June

2004 for the year 2002 – 03, 2003 - 04 and 2004 – 05 may be referred to.

WBSEDCL has asked for release of a part of the stated disallowed amount of

interest. After examining the projected claims with due care, the Commission

is of the considered opinion that the alleged short allowance of interest due to

subsequent revision in the orders of the State Government, should not be

released without further study of the financial implications of such revision in

the rate of interest in capital accounts as well as in the revenue accounts.

The particular loans from the State Government were meant for carrying out



capital construction works. The interest paid / payable on such loans requires

to be capitalized till the time the concerned capital works are completed and

capitalized. The interest on such loans is chargeable to revenue accounts

only for the period after capitalization of the completed construction works.

The particulars those are required for making a decision in this regard have

not been submitted by WBSEDCL and the Commission does not admit for

the present, any claims on account of alleged shortfall in the interest allowed

in the earlier year. WBSEDCL is, however, advised to make a separate

submission to the Commission with all necessary particulars providing the

copies of relevant Government orders in this regard. It is also to be stated

what portion of the interest paid / payable on the concerned loans from the

State Government had been capitalized and what portion is chargeable to

revenue account so as to enable the Commission to take appropriate

decision in this regard at the time of next tariff revision.

(c) Release of the part of ARR withheld in the Tariff Order dated 9th June 2004 of

the Commission:

An amount of Rs. 37298.00 lakh was withheld from the total amount of

revenue requirement admitted by the Commission in the composite tariff

order for erstwhile WBSEB dated 9th June 2004 for the years 2002 – 03, 2003

– 04 and 2004 – 05 pending the submission of certain clarification and

information that were lacking in the tariff applications for the concerned years.

Being satisfied with subsequent submission, the Commission admitted to

release 1/3rd (one-third) of the referred withheld amount in the year 2006 –

07. Paragraph 15.3.14 of the tariff order dated 9th June 2004 and paragraph

7.12.5 of the tariff order dated 8th May 2006 may be referred to in this regard.

The balance amount left to be released was Rs. 24865.00. The Commission

decides to release a further amount of Rs.100.00 crore in this year. The



balance of the withheld amount will be considered suitably for adjustment at

the time of subsequent tariff revision. The Commission has carefully taken

note of the observations made by some objectors in regard to release of this

withheld part of the ARR admitted by the Commission in the year 2004 – 05.

The entitlement of WBSEDCL as a successor of the erstwhile WBSEB to get

back the withheld amount is beyond doubt. The Commission feels that early

release of the referred amount without causing much tariff shock to the

consumers is considered justified to the distribution licensee and beneficial

for its consumers. The release of the amount will enable the licensee to avoid

costly borrowings to that extent for incurrence of capital construction and

operation cost and hence, ultimately benefits are to flow, to the consumers.

6.16 Returns

6.16.1 The entitlement of WBSEDCL for return on its equity base has been examined

with reference to the balance sheet as on 31st March, 2006, as shown in the

Schedule – B to the “West Bengal Power Sector Reforms Transfer Scheme,

2007, notified by the Government of West Bengal on 25 th January, 2007” and the

projected / estimated data provided by the applicant in the prescribed from no.

1.18 of the instant application. The equity capital of WBSEDCL as on 31st March

2006, was shown for an amount of Rs. 1942.00 crore in the referred Schedule –

B. This amount of equity was in consideration of the transfer value of the net

fixed assets of Rs. 2170.00 crores and the capital works-in-progress worth Rs.

2738.00 crores as on the same date. As data provided in regard to the value of

the original cost of fixed assets in form 1.18, the additions in the original cost of

fixed assets pertaining to Distribution & Hydel Undertakings have been

estimated/projected for Rs. 134.00 crores and Rs. 3971.66 crores during the

years 2006 – 07 and 2007 – 08 respectively totaling to Rs. 4106.26 crores. This

amount of the estimated additions in the original cost of fixed assets after 31st



March 2006 needs to be reduced by the opening amount of the value of capital

works-in-progress of Rs. 2738.00 crores considered in the transfer deeds as the

equity support against that amount had already been included in the amount of

opening equity of Rs. 1942.00 crores. The amount of returns allowable to

WBSEDCL for the year 2007 – 08, thus, works out as under:

Sl.No.

Particulars Amount inRs.- Lakh

Amount inRs.- Lakh

(i) Equity as on 31.03.2006 (As perSchedule – B to the referrednotification of the Govt. of WestBengal)

194200.00

(ii) Subsequent additions to theoriginal cost of fixed assets in:2006 – 07 (Estimated)2007 – 08 (projected)

Less: Adjustment of the amountof capital works-in-progress ason 31.03.2006 as per Schedule –B to the referred notification

13460.00397166.00410626.00

273800.00 136826.00

(iii) Normative Equity addition [30%of (ii)]

41048.00

(iv) Equity at the end of 2007 – 08 [(i)+ (iii)]

235248.00

(v) Average equity for the year 2007– 08 [(i) + (iv) / 2]

214724.00

(vi) Return on average equity @ 14%[on (v)]

30061.00

6.16.2 WBSEDCL is a newly incorporated entity to succeed the distribution of energy

and hydro-generation business of erstwhile WBSEB. It is yet to come up with its

independent audited accounts. The amount of returns as has been worked out



on the basis of estimations and projections may be required to be adjusted

suitably as and when the first audited accounts of WBSEDCL will be made

available to the Commission. Such adjustment, if so required, will be considered

at the time of subsequent revision of tariff.

6.16.3 The Commission has carefully noted the observations made by some of the

objectors in regard to the allowable returns on equity. Some of the objectors have

questioned the justifications of increase in the amount of equity over the amount

considered in Commission’s tariff order for the year 2006 – 07. Some has worked

out cash return to the applicant @ 22.3% adding the amount of depreciation to

the return on equity and considered that rate abnormally high. The Commission

wants to highlight that for considering the equity of the applicant, it has gone by

the restructuring scheme notified by the Govt. of West Bengal and referred in

earlier paragraph.

It has been observed by the Commission that the amount of capital employed in

business transferred to WBSEDCL was Rs. 6495.00 crore on 31st March 2006 as

against that the amount of equity was considered Rs. 1942.00 crore, coming to

around 30% only which is at par with the other organizations in the power sector

and is not to be considered high. Otherwise also, the increase in the equity base

of a licensee goes ultimately in favour of the consumers by reduction in the cost

of borrowed capital and at the same time enable the licensee to have a

favourable rate in case of market borrowings. The observations made by some

objectors on the high rate of cash return are also considered not proper.

Depreciation means the expiration of the cost of fixed assets used during a

period and adding up the amount of depreciation to the licensee’s returns (to

work out the cash return) is not proper. Moreover, the average rate of

depreciation in the case of WBSEDCL comes around 3% only and not 8.33% as

considered by the objectors.



6.17 Income from Non-Tariff Sources

The income from non-tariff sources, comprising of rental of meters and other

apparatus, delayed payment surcharges, interest and investment income, etc.

has been estimated Rs. 16805.24 lakh. The projected amount is considered to

be logical and the Commission admits the same.

6.18 Amount Recoverable from Bulk Supply

As referred in the statement of Energy Balance in the earlier chapter, the total

quantum of bulk supply to other licensees in the State is 1598.19 MU. The rate at

which such supply is to be charged works out to 255.00 paise per kWh and

therefore, the revenue recoverable from such bulk supply has been worked out to

Rs. 40753.85 lakh. In addition to that WBSEDCL is also to supply 43.69 MU to

Sikkim @ 169 paise / kWh. The recoverable amount from Sikkim works out to

738.36 lakh. The total amount recoverable from bulk supply will come to Rs.

41492.21.

6.19 Share of Gains out of the Sale of Energy to Persons other than theLicensee and own Consumers

Under the system of prospective tariff determination, the gains to be derived by

the licensee from sale of energy to persons other than licensees and own

consumers can not be precisely determined. The quantum of such sale as well

as the price available for such sale will depend on the fluctuating demand and

supply conditions in the market. The Commission, therefore stipulates that the

amount towards share of gains by way to such sale as have been considered in

this order will be subject to adjustment at the time of subsequent tariff revision

when all the relevant actual audited data will be made available to the

Commission.



The estimated quantum of sale of energy to persons other than the consumers

and other licensees as per the statement of Energy Balance considered by the

Commission in earlier chapter comes to 5229.72 MU. A part of the amount of

benefits to be derived from such sale is required to be passed on to the

consumers in terms of the Commission’s Tariff Regulations, 2007. The

Commission considers to pass on 90% of such benefits to the consumers and

10% to be retained by WBSEDCL. The amount works out as under:

Rs. in Lakh

(i) Revenue from such sale (@ of 348 paise / kWh) 181994.26

(ii) The cost of energy to the applicant 102628.03at average rate of purchase i.e., 196.24 p/kWh

(iii) Surplus [(i) – (ii)] 79366.23

(iv) Consumers’ share [90% of (iii)] 71429.61

6.20 Adjustment of Amounts received towards Unscheduled Interchange (UI)

It has been observed by the Commission from the submission of WBSEDCL that

erstwhile WBSEB earned the undernoted amounts from Unscheduled

Interchange (UI) during financial years 2003 – 04, 2004 – 05 and 2005 – 06.

Rs. in Lakh

2003 – 2004 9774.23

2004 – 2005 14980.34

2005 – 2006 18847.41

Total 43601.98

The schedule no. 5 of the audited accounts of erstwhile WBSEB may be referred

to in this regard. Against this amount of total earning through UI, the Commission

made the following adjustments in earlier years as detailed below:



i) Adjustment in the ARR for the year 9712.002005-06 (vide paragraph 7.1 of orderdated 31.03.2005

ii) Adjustment against power purchaseCost for the year 2006 – 07(vide the Schedule of purchase underparagraph 5.3 of order dated 8.5.06) 14700.00

Total 24412.00

The balance amount of Rs. 19189.98 lakh i.e. (43601.98 – 24412.00) is being

considered for adjustment for ascertaining the ARR for the year 2007 – 08.

6.21 Transmission charges payable to WBSETCL.

WBSEDCL has asked for a provision for an amount of Rs.41825.11 lakh towards

transmission charges payable to the State Transmission Utility, i.e., West Bengal

State Electricity transmission Company Ltd (WBSETCL). Based on the tariff

applications submitted by WBSETCL for the concerned year, the Commission

has finalized the amount of the Aggregate Revenue Requirement (comprising of

all its fixed charges) of WBSETCL and the same has come to Rs.42342.70 lakh.

The particulars will be available in the Commission’s order dated 26.07.2007 in

Case No: TP-34/07-08 in regard to WBSETCL for the year 2007-2008. The

Commission accordingly allows a sum of Rs.42342.70 lakh payable by

WBSEDCL to WBSETCL as transmission charges including handling and system

operation charges in 2007-08.


CHAPTER - 7REVENUE REQUIREMENT &

AVERAGE COST OF SUPPLY


7.1 The analysis and admission of variable cost and Fixed Charges in the foregoing

paragraphs now leads to drawing of the Statement of Revenue Requirements of

WBSEDCL for the year 2007 – 2008 and also to working out the average cost of

supply to its consumers:

Sl.No.

Particulars As perPetition

Rs. in Lakh

As foundAdmissibleRs. in Lakh

A. VARIABLE COST:1 Fuel cost (For Diesel Generating Station) 87.00 87.002 Power Purchase 420103.88 465184.33

Total Variable Cost (A): 420190.88 465271.33B. FIXED COST:

3Transmission charges payable to WBSETCL(including handling & system operation charges etc.) 41825.11 42342.70

4 Employee Cost 36954.32 36954.32

5 Repairs & Maintenance charges including cost ofconsumables

9448.19 9440.22

6 Administration & General Expensesa) Rent, Rates and Taxes 615.45 80.52b) Legal Charges 158.67 90.32c) Auditors Fees 93.50 93.50

d) Other Administrative and General Charges 6646.22 6630.00

7 Interest on borrowed capital 14872.72 14873.008 Interest on Bonds for Employees Terminal Benefits 13005.00 13005.009 Interest on Consumer's Security Deposit 3618.35 3618.35

10 Other Finance Charges 2186.93 1468.06

11 Interest on working capital7060.00 7060.00



Sl.No. Particulars

As perPetition

Rs. in Lakh

As foundAdmissibleRs. in Lakh

12 Depreciation 21761.00 21761.0013 Write off of Intangible Assets 40.23 40.2314 Provision for Bad Debt 430.00 430.0015 Expenditures relating to SHRELCOP 495.69 251.0516. Taxes 171.04 238.38

Total Fixed Cost (B): 159382.42 158376.65

C RETURNS & APPROPRIATIONS:17 Returns 39148.00 30061.0018 Reserve for Unforeseen Exigencies 1149.58 1149.5819 Appropriation relating to earlier years 10431.20 10000.00

Total Returns and Appropriations (C): 50728.78 41210.5820 Gross Revenue Requirement (A+B+C) 630302.06 664858.56D. ADJUSTMENTS

21 Other Income (Non-Tariff) 16805.24 16805.24

22 Expenses attributable to sales to persons other thanconsumers and licensees & Sikkim 92090.16 102628.03

23 Revenue from sale to licensees and Sikkim 27137.00 41492.2124 Benefits to be passed on to consumers 76067.86 71429.6125 Adjustments of UI charges earned in earlier years. 0.00 19189.98

TOTAL: ADJUSTMENTS: 212100.26 251545.07

26 Aggregate Revenue Requirement from sale ofenergy to own consumers (20 – D) 418201.82 413313.49

27 Sales to consumers (MU) 12896.00 12896.0028 Average cost of supply (paise / kWh) 324.29 320.49

Notes: Figures in the projections of WBSEDCL have been regrouped/ rearranged tomaintain comparability.


CHAPTER - 8TARIFF ORDER


8.1 The tariff schedule as applicable to the consumers of WBSEDCL in the year

2007-08 is given at Annexure A1 for LV and MV consumers under quarterly billing

cycle, at Annexure A2 for LV and MV consumers under monthly billing cycle and

at Annexure A3 for HV and EHV consumers. The Commission has reviewed the

directives given to WBSEB in the tariff order for 2006-07 and compliance thereof

by WBSEDCL and also decided to give certain directives to WBSEDCL on

various matters. These are to be found at Annexure B.

8.2 The associated conditions of the tariff shall be as follow: -

8.2.1 (a) In order to reduce the overall system T&D loss and to flatten the load

curve by improving the existing system load factor of WBSEDCL, the HV

industrial consumers shall receive a voltage wise graded load factor

rebate as per following table:

LOAD FACTOR REBATE

Supply VoltageRange of Load Factor(LF) 6.6/11 kV 33 kV 66 /132/ 220/ 400 kV

Above 55% Up to 60% 3 paise / kWh 4 paise / kWh 5 paise / kWhAbove 60% Up to 70% 8 paise / kWh 9 paise / kWh 10 paise / kWhAbove 70% Up to 75% 15 paise / kWh 20 paise / kWh 22 paise / kWhAbove 75% Up to 80% 20 paise / kWh 25 paise / kWh 30 paise / kWhAbove 80% Up to 90% 25 paise / kWh 35 paise / kWh 40 paise / kWhAbove 90% Up to 92% 30 paise / kWh 40 paise / kWh 45 paise / kWhAbove 92% 35 paise / kWh 45 paise / kWh 50 paise / kWh

The above load factor rebate shall be applicable on quantum of energy

consumed in the billing period. (For example a 33 kV industrial consumer

at 85% load factor shall be eligible for a rebate @ 35 paise / kWh on the

total quantum of energy consumed in the billing period).

(b) Load factor surcharge shall be levied on HV industrial and HV commercial

consumers if the load factor falls below 30%. The surcharge amount for



the load factor less than 30% but equal to or above 25% shall be 5 paise /

kWh for the amount of energy by which consumption falls short of energy

corresponding to a load factor of 30%. The surcharge amount for the load

factor below 25% shall be 30 paise / kWh and shall be applicable only for

the amount of energy by which the consumption falls short of energy

corresponding to a load factor of 25% but not less than the amount of

surcharge that would have been payable for load factor at 25% computed

@ 5 paise / kWh. (For example, a HV industrial or commercial consumer

at 28% load factor shall be liable for paying a surcharge @ 5 paise / kWh

on the quantum of energy to be consumed at 30% load factor minus total

energy consumed in the billing period. Similarly, a HV industrial or

commercial consumer at 24% load factor shall be liable for paying a

surcharge @ 30 paise / kWh on the quantum of energy to be consumed

at 25% load factor minus total energy consumed in the billing period but

not less than the amount of surcharge that would have been payable for

load factor at 25% computed @ 5 paise / kWh).

8.2.2 (a) Fixed Charge for LV and MV consumers and Demand charge for HV and

EHV consumers shall be such as shown at Annexure-A1, Annexure-A2

and Annexure-A3 respectively.. Demand charge shall be levied on the

basis of maximum demand recorded during the month or 75% of the

contract demand whichever is higher subject to a minimum of 50 KVA. In

case KW demand is recorded in place of KVA demand then the demand

charge rate in KVA is to be determined by considering a power factor of

0.85.

(b) In case the highest demand of any non-TOD HT consumer exceeds the

contract demand in any month, the demand charge as mentioned in the

tariff schedule shall apply on recorded highest demand for that month. In

addition to this, additional demand charge in the case of such consumer



shall be 60% of demand charge on the quantum of demand by which the

recorded highest demand exceeds the contract demand. Excess energy

drawal corresponding to such excess demand shall be billed at applicable

energy charge for such consumer.

(c) In case the highest demand of any HT consumer under TOD tariff

exceeds the contract demand in any month, the demand charge as

mentioned in the tariff schedule shall apply on highest demand for that

month. In addition, the demand of power in excess of sanctioned contract

demand in any period of time shall attract the additional demand charge

for the said excess demand for such consumer, and the same shall be

calculated according to the following formulae:

i) In case the highest demand during normal period exceeds thecontract demand

ADCED = 0.2 X (Dact – Dcont) x DC

ii) In case the highest demand during peak exceeds the contractdemand


iii) In case the highest demand during off-peak period exceeds thecontract demand

When Dact > Dcont and Dact ≤1.3 x Dcont


When Dact > 1.3 x Dcont and Dact ≤1.5 x Dcont

ADCED = [0.01 X 0.3 x Dcont + 0.1 x (Dact – 1.3 x Dcont)] x DC

When Dact > 1.5 x Dcont

ADCED = [0.01X0.3xDcont + 0.1x0.2xDcont + 0.2 x (Dact–1.5xDcont)] x DC

iv) In the formulae (i), (ii) and (iii) mentioned above, the abbreviationshave the meanings as given below:



ADCED = Additional Demand Charge for demand of power in

excess of sanctioned contract demand during

billing period.

Dact = Actual highest demand of power in respective time

period.

Dcont = Sanctioned Contract Demand of the consumer.

DC = Rate of Demand Charge as per this tariff order for

the relevant category of consumer.

v) In case demand of power exceeds sanctioned contract demand in

more than one time period, computation of Additional Demand

Charge (ADCED) shall be done for each such time period and the

highest among such computed additional demand charge for different

periods shall be chargeable.

vi) Excess energy drawal corresponding to any excess demand shall be

billed at the applicable energy charge for such consumer.

(d) The demand charge shall not be payable by any consumer for that period

when load of the consumer is totally shed / interrupted because of any

fault of WBSEDCL or its system. Such exemption from demand charge

shall not be available if the interruption is caused by grid failure or

automatic under-frequency relay tripping or any force majeure issues not

related to WBSEDCL or due to disconnection of supply for any fault on

the part of the consumer. This is, however, without any prejudice to any

other compensation if the consumer is entitled to such compensation

because of applicability of any other law for the time being in force or the

Electricity Act 2003 or the Regulations made thereunder.



(e) For LV and MV consumers, the fixed charge in terms of per KVA/month

shall be based on contract demand or sanctioned load. In case where no

consumption of energy has taken place for any reasons including

disconnection of supply the fixed charge shall be calculated on the basis

of the contract demand or sanctioned load. For billing for any fraction of a

month caused due to discontinuance of consumership, the computation of

fixed charge shall be made for the entire month. In case where KVA is not

available, it can be converted from kW considering 0.85 as power factor.

8.2.2.1 Minimum charges excluding meter rent, taxes, levies etc. and arrears shall

be as follows:

Category of Consumers Minimum charge

(i) LV & MV Domestic (Rural) Rs. 28/- per month

(ii) LV & MV Domestic (Urban) Rs. 28/- per month

(iii) Domestic HV Rs. 400/- per month per KW ofsanctioned load

The minimum charge shall be applicable when the sum of the energy charge

and demand charge or fixed charge, if any, including rebate and surcharge, if

any, is less than the minimum charge.

8.2.2.2 The rate of energy charge applicable for temporary supply related to events,

festivals, marriage ceremony shall be at the highest rate of supply under non-

TOD tariff scheme applicable to that particular category of consumers to

which the applicant seeking such supply belongs. For such temporary supply,

the fixed / demand charge shall be the fixed / demand charge under non-

TOD tariff applicable to that particular category of consumers to which the

applicant seeking such supply belongs. Such temporary supply shall not

have any load factor rebate and power factor rebate and shall not be entitled



to TOD tariff. However, other charges for such temporary supply shall be the

same as are applicable to that particular category of consumers to which the

applicant seeking such temporary supply belongs. If there is no appropriate

rate given in the tariff schedule for such temporary supply, the rate for such

temporary supply shall be @ Rs.5.00 / kWh. For such temporary supply, the

applicant shall apply to the licensee at least 10 days in advance.

8.2.2.3 Rebate for Cold Storage plant meant exclusively for storing fish, sea food,

potato and perishable vegetable covered under rate S (f-pi) and rate S(ft-pi)

shall be 7% of the energy charge provided the payment is made within due

date.

8.2.2.4 For street lighting and public water works, a rebate of 15 paise /Kwh on

energy charge will be given if payment is made within due date in case of

normal or normal-TOD meter only. It will not apply to such supply having pre-

paid meter.

8.2.2.5 Rebate for timely payment to all consumers excluding those covered by

paragraphs 8.2.2.3 and 8.2.2.4 above or pre-paid meter shall be 2% of the

amount of the bills excluding meter rent, taxes, duties, levies and arrears.

8.2.2.6 For industrial supply, rebates for 33 KV and 66 KV supply shall be at 3% of

the energy charge and the rebate for 132 KV supply shall be at 7% of the

energy charge. For 220 KV and 400 KV supply in industry, rebate shall be

9% of the energy charge. This rebate will be given before giving effect to

rebate mentioned in paragraph 8.2.2.5.

8.2.2.7 Additional rebate of 5 paise per kWh on energy charge will be allowed to an

EHV industrial consumer whose contract demand is 25 MVA or above and

whose load factor is not less than 75% in the billing period and whose

recorded maximum demand during billing period is not less than 80% of the



contract demand subject to the condition that the payment is made within the

due date. This rebate is in addition to the rebates under paragraphs 8.2.1,

8.2.2.5 and 8.2.2.6. This rebate will be given before giving effect to rebate

mentioned in paragraphs 8.2.2.5 and. 8.2.2.6.

8.2.2.8 Additional rebate of 5 paise per unit on energy charge will be given to

domestic and commercial consumers under LV and MV categories covered

by quarterly billing system under normal or normal-TOD tariff scheme if

payment is made for the quarter at a time within due date stipulated for first

month of the quarter. This rebate will be in addition to rebate under

paragraph 8.2.2.5 for normal meter or normal TOD meter and will be given

after giving the effect of rebate under paragraph 8.2.2.5.

8.2.2.9 Un-metered agricultural / irrigation consumers may make monthly payment

for which they shall be entitled to 2% rebate for timely payment within due

date in line with the consumers of other categories as mentioned in

paragraph 8.2.2.5. In case, however, such agricultural/ irrigation consumers

opt for advance payment of the full annual amount, the consumers shall be

allowed a rebate of 5% in addition to 2% rebate mentioned in paragraph

8.2.2.5 and this additional rebate of 5% will be given effect after giving effect

to rebate under paragraph 8.2.2.5.

8.2.2.10 The power factor rebate and surcharge shall continue at the same rates for

those categories of consumers to whom these are applicable at present. The

methods of calculation of such rebate and surcharge shall also continue to be

the same as given in the tariff order of WBSEB for 2006-07. The rebate and

surcharge against different time periods shall be reflected in the bill

separately and shall be treated separately.

8.2.2.11 For short term supply, emergency supply and for supply of construction

power, there shall be no rebate or surcharge for load factor and power factor.



8.2.2.12 For pre-paid tariff scheme with pre-paid meter a discount of 2.75% on

energy charge will be allowed except for public water works, commercial and

domestic consumers under LV under MV categories. For public water-works,

a special discount of 16 paisa/Kwh on energy charge will be given in case the

supply is under pre-paid tariff scheme through prepaid meter. For commercial

and domestic consumers under LV and MV categories having pre-paid tariff

scheme through prepaid meter, a special discount of 4.75% on energy

charge will be given.

8.2.2.13 Delayed payment surcharge on due amount shall be 1.25% per month of the

delay in payment or pro-rated for part thereof up to 3 months of delay, at

1.5% per month of delay or pro-rated for part thereof for any period beyond 3

months of delay but up to the next 3 months and at 2% per month of delay or

pro-rated for part thereof beyond first 6 months of delay. Delay in payment

shall be counted from the due date for payment. This delayed payment

surcharge is without prejudice to the provisions under the Electricity Act 2003

and the Regulations made thereunder.

8.2.2.14 Dairy with chilling plant will be under the category of consumers of cold

storage for non perishable items.

8.2.2.15 For irrigation tariff under Rate-C(b), North Bengal stands for the districts of

Coochbehar, Jalpaiguri, Darjeeling, North Dinajpur, South Dinajpur and

Malda.

8.2.3 All existing charges relating to meter rent, meter testing, meter replacement,

etc., shall continue except for the following for which the charges are given

below:

i) Meter rent for LT Pre-paid Meter for Domestic and Commercialcategories.



Single Phase Rs. 15 per month per meter

Three Phase Rs. 30 per month per meter

ii) The consumer opting for pre-paid meter shall not be required to

furnish any security deposit for the energy charge.

iii) No meter rent and security deposit for meter shall be applicable if

the meter is supplied by the consumer.

8.2.4 All statutory levies like Electricity Duty or any other taxes, duties etc. imposed

by the State Govt. / Central Govt. or any other competent authority shall be

extra and shall not be a part of the tariff as determined under this tariff order.

8.2.5 This tariff shall be applicable from the billing month of / pertaining to April, 2007

and onwards. Adjustments, if any, shall be made in the bills for the months of

October and November 2007. If any technological intervention is required by

WBSEDCL due to change in peak and off-peak period time under TOD

scheme, then that shall be done within September, 2007.

8.2.6 In addition to the tariff determined under this tariff order, WBSEDCL would be

further entitled to additional sums towards enhanced cost of fuel and power

purchase, if any, after the date from which this tariff order takes effect. The fuel

and power purchase cost shall be subject to adjustment according to West

Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff)

Regulations, 2007 and as per Fuel and Power Purchase Cost Adjustment

(FPPCA) formula as given in Schedule 7 of the said regulations.

8.2.7 a) Introduction of an optional TOD tariff scheme for LT Commercial, LT

Industrial and LT Public Water Works categories of consumers which was

directed in the tariff order for 2006-07 shall be extended additionally to

cover such consumers also having a minimum load of 30 KVA .



b) For LT industrial and LT commercial consumers, opting for TOD tariff, the

total energy charge shall be determined as per the tariff rate given in this

order.

c) For any pre-paid and TOD tariff scheme other charges shall be the

charges applicable to consumers under respective category of non-TOD

tariff.

8.2.8 An applicant for short term supplies through pre-paid meter shall have to

comply with all necessary formalities for obtaining supply including payment in

accordance with the Regulations made by the Commissions. The same will be

subject to the following conditions:-

a) provision of requisite meter security deposit, to be kept with the licensee;

b) provision of space for installing weather-proof, safe and secure terminal

services apparatus to protect sophisticated meter; and

c) availability of prepaid-meter of appropriate capacity.

8.2.9 All billing parameters of a bill shall be construed for a billing period only, which

has been specified by the Commission, irrespective of the date on which the

meter reading is taken in accordance with any regulation made by the

Commission.

8.2.10 Any optional tariff scheme for pre-paid meters will be subject to availability of

vending centres for the present. However, for a consumer for whom pre-paid

meter is mandatory but vending machine is not available, pre-denominated

pre-paid facility shall be extended. This pre-denominated pre-paid facility for

optional tariff scheme for pre-paid meters may be also extended to those

areas where vending machines are not available.

8.2.11 An existing consumer may switchover to a new category of consumers with

effect from any date after 30.9.2007.For that purpose such existing consumer



shall apply to the licensee for such conversion at least sixty days in advance

with necessary documents.

8.2.12 Consumers who have only the pre-paid tariff scheme as applicable tariff

scheme shall be allowed to have an alternative normal tariff scheme at the

same rates as applicable for the prepaid tariff scheme in case of non-

availability of pre-paid meters till such time such pre-paid meters are available.

8.2.13 The tariffs determined under this order for different categories of consumers

are the maximum ceilings for supply of electricity at any agreed price to the

consumers for those areas of supply of WBSEDCL only where multiple

licensees exist. However, if supply is effected to a consumer at a price lesser

than the upper ceiling, and as a result the licensee incurs loss , such loss shall

not be allowed to be passed on to any other consumers or any other

distribution licensees of the Commission.

8.2.14 The purchase price of electricity by WBSEDCL from different agencies shall

be as per Annexure A4.

8.2.15 A new category of consumers named as Lifeline(Domestic) has been

introduced subject to the condition that such category of consumers shall have

metered supply and sanctioned domestic load of 0.3 KW. In case the

sanctioned load in KW is not available, it can be converted from KVA

considering 0.85 as power factor. If the quarterly consumption of any such

consumer exceeds 75 Kwh, then he will fall in the category of domestic (rural)

consumers or domestic (urban) consumers as the case may be for that billing

period.

8.2.16 PLF for any plant may be adjusted downward against enhanced performance

of any other plant of WBSEDCL that registers generation above the target

PLF for the purpose of recovery of fixed cost. The plant whose enhanced



performance will meet the shortfall in PLF of any other plant of WBSEDCL,

shall be paid energy charge at the rate applicable to it as per this tariff order.

8.3 It is open to the State Government to grant any subsidy to any consumer or any

class of consumers in the tariff determined by the Commission for WBSEDCL. If at

all any such subsidy under the provisions of the Act is intimated to WBSEDCL and

to the Commission by the Government of West Bengal with clear indication of the

consumer or class of consumers to be subsidized and the amount of the subsidy

proposed to be given is paid in advance and in cash, the tariff of such consumer

and / or the class of consumers shall be deemed to have been reduced accordingly

as has been indicated by the State Government. However, such direction of the

State Government shall not be operative till the payment is made by the State

Government in accordance with the provisions of the Act and the Regulations made

thereunder, and the tariff as fixed by the Commission shall remain applicable. In

terms of the West Bengal Electricity Regulatory Commission (Terms and

Conditions of Tariff) Regulations, 2007, the State Government is required to

communicate within 15 days from the date of receipt of a tariff order, whether it

shall give any subsidy to any group of consumers etc.

8.4 WBSEDCL shall present to the Commission a gist of this order along with the

names of at least four leading dailies (at least one of which shall be in English, one

in Hindi and the rest in Bengali) within three working days from the date of receipt

of this order for approval of the Commission and on receipt of the approval shall

publish the approved gist in those newspapers within four days from the date of

receipt of the approval of the Commission.

Tariff Order of WBSEDCL for 2007-08

Annexure A1

EnergyCharge

EnergyCharge

P/kWh P/kWh

1. Life Line(Domestic )

RateA(Dm-LL) 206 Nil

First 75 209 75 209Next 105 232 105 232Next 120 284 120 284Next 600 327 600 327

Above 900 572 900 572First 75 214 75 214Next 75 242 75 242Next 150 289 150 289Next 150 334 150 334Next 450 354 450 354

Above 900 572 900 572First 180 282Next 120 399Next 150 425Next 450 465

Above 900 550 Allunits 363 All units 363

First 180 287Next 120 404Next 150 425Next 450 465

Above 900 550 Allunits 363 All units 363

RateA(Dm-R)

NormalRate

A(Cm-R)

NormalRate

A(Cm-U)

Type of Consumer Consumercategory

LOW AND MEDIUM VOLTAGE CONSUMERS

Nil NOT APPLICABLE

Optional tariff SchemeOptional Tariff Scheme - IIOptional Tariff Scheme – I

Quarterly consumption inKWH

NilRate

A(Dm-R)pp

Name of theTariff Scheme

Applicable Tariff Scheme

Prepaid


Fixed Charge Consumer categoryName of the TariffScheme

Normal 0 to 75

2.

5.

NOT APPLICABLE

Normal -TOD

RateA(Cm-R)t

PrepaidNil

Normal -TOD

Above

Domestic (Rural)

Domestic (Urban)3.

Commercial (Rural)4.

NextNext

Above

23.00 hrs to 06.00hrs.

06.00 hrs to 17.00hrs

Rs 5/- perconsumer/

month

Allunits

17.00 hrs to 23.00hrs.

Allunits

RateA(Cm-U)t

Sl No

Commercial (Urban)

Normal

RateA(Dm-U)

NormalRate

A(Dm-U)pp

Rs 5/- perconsumer/

month

23.00 hrs to 06.00 hrs.

Rs 5/- perconsumer /

month

NOT APPLICABLE

All units

Rs 5/- perconsumer /

month

17.00 hrs to 23.00 hrs. All units

23.00 hrs to 06.00 hrs.

17.00 hrs to 23.00 hrs.

NOT APPLICABLE

429

06.00 hrs to 17.00 hrs All units 390

All units

06.00 hrs to 17.00 hrs 390

429

Energy Charge

P/kWh


Quarterly consumptionin KWH

Consumer category

Nil

RateA(Cm-R)tpp

23.00 hrs to 06.00hrs.

Fixed ChargeFixed Charge

06.00 hrs to 17.00hrs

17.00 hrs to 23.00hrs.

AllunitsAll

units

FirstNextNextNext

390

Prepaid- TODRs 5/- per

consumer/month

RateA(Cm-U)tpp

Rs 5/- perconsumer/

month

390

429

Prepaid - TOD429

FirstNextNext



Annexure A1

EnergyCharge

EnergyCharge

P/kWh P/kWh

Type of Consumer Consumercategory


Optional tariff SchemeOptional Tariff Scheme - IIOptional Tariff Scheme – I





Fixed Charge Consumer categoryName of the TariffScheme

Sl No Energy Charge

P/kWh


Quarterly consumptionin KWH

Consumer category Fixed ChargeFixed Charge

On allunits 283

On allunits

311

In Municipal AreaOn allunits 263

On allunits 273

On allunits

300

In Non Municipal AreaOn allunits 254

First 900 360

Rs 5/- perconsumer

/month

RateA(Cm-III) ppt

Prepaid - TOD

23.00 hrs to 06.00hrs.

06.00 hrs to 17.00hrs

RateA(Cm-II) ppt

Nil

NOT APPLICABLEPrepaid - TOD

PrepaidRate

A(Cm-PU)(Non-Mun) pp

RateA(Cm-PU)

(Non-Mun) pptPrepaid - TODNil Nil

Public utility/ SpecifiedInstitution Public Bodies

RateA(Cm-PU)

(Mun)On all Units

Rs 5/- perconsumer

/month

285 Nil

300

Next 300

On all Units

Normal

RateA(Cm-PU)(Non-Mun)

Normal

Cottage Industry /Artisan / Weavers / Small

production orientedestablishment in Non

Municipal area &not runby electricity as motive

power

RateA(Cm-II) Normal

Poultry, Duckery,Horticulture, Tissueculture, Floriculture,

Herbal – Medicinal – Bio-diesel Plant Farming,Food Processing Unit

RateA(Cm-III)

7.

8.

Normal6.

Public utility/ SpecifiedInstitution Public Bodies

275 17.00 hrs to 20.00 hrs.

23.00 hrs to 06.00 hrs

06.00 hrs. – 17.00 hrs.& 20.00 hrs - 23.00

hrs.

17.00 hrs to 20.00 hrs.

23.00 hrs to 06.00 hrs

06.00 hrs. – 17.00 hrs.& 20.00 hrs - 23.00

hrs.

Prepaid - TODRate

A(Cm-PU)(Mun) ppt

On all UnitsNil

RateA(Cm-PU)(Mun) pp

Prepaid On all Units Nil285

9.

06.00 hrs to 17.00hrs

Allunits

17.00 hrs to 23.00hrs.

Allunits

Above 900 465

385

Allunits

17.00 hrs to 23.00hrs.

Allunits

Allunits

23.00 hrs to 06.00hrs.

355Allunits

Rs 5/- perconsumer

/month

Rs 5/- perconsumer

/monthNOT APPLICABLE390

330

350

326above 600

247

380

414

275

First



Annexure A2

EnergyCharge

EnergyCharge

P/kWh P/kWh

1. Lokdeep / Kutirjyoti RateA(Dm-K)

Rs. 28 perconsumer per

month

2. Labour Line(Domestic )

RateA(Dm-L) 242

06.00 hrs to17.00 hrs All units 137 All units 137

17.00 hrs to23.00 hrs.

All units 475 All units 475

23.00 hrs to06.00 hrs

All units 75 All units 75

4.Irrigation pumping for

Agriculture (Metered supplyfrom mixed HV feeder )

Rate C(a) 150 Nil

Rs 6750/consumer/

annum

Rs 8800/consumer/

annum

Rs 8000/consumer/

annum

Rs 10800/consumer/

annum

Normal 0 to 25 NOT APPLICABLE NOT APPLICABLE

Normal All units NOT APPLICABLE NOT APPLICABLE

Type of Consumer

Irrigation pumping forAgriculture (Un-Metered) Normal


Monthly consumption inKWH

Fixed Charge


Optional tariff SchemeOptional Tariff Scheme - II

5.

Consumercategory

Name of the TariffScheme

Optional Tariff Scheme – IMonthly consumption in

KWHName of the

Tariff Scheme

NOT APPLICABLE

Sl No Consumer category

3.Irrigation pumping for

Agriculture(Metered)

NOT APPLICABLE

Normal All units

Consumer categoryFixed Charge Energy Charge

P/kWh



NOT APPLICABLERateC(t)

Normal TOD

RateC(b)

STW in Other District

Submersible in NB

Submersible in OtherDistrict

Nil

STW in NB

NOT APPLICABLENOT APPLICABLE

RateC(t)ppt

Prepaid - TOD

06.00 hrs to 17.00hrs

17.00 hrs to 23.00hrs.

23.00 hrs to 06.00hrs

Nil



Annexure A2

EnergyCharge

EnergyCharge

P/kWh P/kWh

Type of Consumer



Fixed Charge



Consumercategory



KWHName of the

Tariff SchemeSl No Consumer category Consumer categoryFixed Charge Energy Charge

P/kWh



06.00 hrs to17.00 hrs All units 375

17.00 hrs to23.00 hrs.

All units 475

23.00 hrs to06.00 hrs

All units 349


17.00 hrs to23.00 hrs. All units 500


06.00 hrs to17.00 hrs

All units 390

17.00 hrs to23.00 hrs.

All units 525


06.00 hrs to17.00 hrs

All units 400

17.00 hrs to23.00 hrs. All units 440


Prepaid- TOD8.

Rs 10/- per kvaper monthShort Term Irrigation Supply

Short Term supply forCommercial Plantation

7.

9.

Rs 10/- per kvaper month

NOT APPLICABLE

Short-term Supply

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE NOT APPLICABLE

NOT APPLICABLE

Commercial Plantation



RateC(t) - STIS

Prepaid - TOD

Prepaid- TOD

RateA(ST)

RateA(Cm)-STCP

RateA(Cm) - CP

Prepaid- TOD6.

NOT APPLICABLE



Annexure A2

EnergyCharge

EnergyCharge

P/kWh P/kWh

Type of Consumer



Fixed Charge



Consumercategory



KWHName of the


P/kWh



AllUnits 268

AllUnits

402

AllUnits

185

Next 1500 391All

UnitsAll

Units248

Next 1500 406 AllUnitsAll

Units257

13. Street LightingRateD(1) 233 Nil

On allUnits 373

On allUnits 410

On allUnits

347

273Rate

B(II) tppPrepaid - TOD

AllUnits

06.00 hrs to 17.00hrs

Rs 10/- perKVA permonth

23.00 hrs to 06.00hrs

Normal - TOD

06.00 hrs to 17.00hrs & 20.00 hrs to

23.00 hrs

17.00 hrs to 20.00hrs

Rate B(I-U) t

Rs 12/- perKVA permonth

390

546Rs 12/- per

KVA permonth

23.00 hrs to 06.00hrs

17.00 hrs to 23.00hrs

AllUnits

375

525

17.00 hrs to 20.00hrs.

NOT APPLICABLE

23.00 hrs to 06.00hrs

Public Water Works &Sewerage System Nil

RateB (II)

Normal Nil

06.00 hrs. – 17.00hrs. & 20.00 hrs -

23.00 hrs.

On all Units10.

NormalIndustry (Urban)

Above

375On all Units14. Normal

Normal

Private EducationalInstitutions and Hospitals

RateD(4)

On all Units

Rs 10/- perKVA per month

11. Industry (Rural)

432

12.

412

RateB(I-U)

NormalRate

B(I-R)

3500

First 500

Above 2000

First 500

279


Normal - TOD

294


17.00 hrs to 23.00hrs

23.00 hrs to 06.00hrs

06.00 hrs to 17.00hrs

RateB(I-R) t

Normal - TOD

NOT APPLICABLE

NOT APPLICABLE

RateD(4) t

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE



Annexure A2

EnergyCharge

EnergyCharge

P/kWh P/kWh

Type of Consumer



Fixed Charge



Consumercategory



KWHName of the


P/kWh



06.00 hrs to17.00 hrs

On allUnits 450

17.00 hrs to23.00 hrs

On allUnits 675

23.00 hrs to06.00 hrs

On allUnits

311

06.00 hrs. –17.00 hrs. &20 .00 hrs to

23.00 hrs

On allUnits 390

17.00 hrs to20.00 hrs.

On allUnits

575

23.00 hrs to06.00 hrs

On allUnits 257

On allUnits 298

On allUnits

328

On allUnits 277

06.00 hrs. –17.00 hrs. &20 .00 hrs to

23.00 hrs

On allUnits 360

17.00 hrs to20.00 hrs.

On allUnits 505

23.00 hrs to06.00 hrs

On allUnits 238

NOT APPLICABLE

18.

Nil

15.

Construction Power Supply16.

Rs 12/- perKVA per monthRate D(8)

RateD(5)

Rate D(7)


Prepaid - TOD

Bulk Supply at single point toCo-operative Group HousingSociety for providing powerto its members or person for

providing power to itsemployees in a single

premises

Prepaid- TOD

Prepaid-TOD

Common Services ofIndustrial Estate

Emergency

Rate D(6)

300All units17. Normal

Nil

NOT APPLICABLE

NOT APPLICABLENormal - TOD Nil

23.00 hrs to 06.00hrs

06.00 hrs to 17.00hrs

17.00 hrs to 23.00hrs

NOT APPLICABLE

RateD(7)t

NOT APPLICABLENOT APPLICABLE

NOT APPLICABLE



Annexure A2

Fixed Charge



Annexure A3

DemandCharge

DemandCharge

Summer Monsoon WinterSummer Monsoon Winter

06.00 hrs-17.00 hrs

&20.00 hrs-23.00 hrs

17.00 hrs-20.00 hrs

All Units 399 396 393

23.00 hrs-06.00 hrs

All Units 181 180 179

06.00 hrs-17.00 hrs

&20.00 hrs-23.00 hrs

17.00 hrs-20.00 hrs

All Units 397 394 391

23.00 hrs-06.00 hrs

All Units 181 179 178

06.00 hrs-17.00 hrs

All Units 366 365 364

17.00 hrs-23.00 hrs

All Units 549 548 546

23.00 hrs-06.00 hrs

All Units 253 252 251

06.00 hrs-17.00 hrs

All Units 345 343 341

17.00 hrs-23.00 hrs

All Units 518 515 512

23.00 hrs-06.00 hrs

All Units 238 237 235

SlNo

Type of Consumer Applicable Tariff Scheme

1 Normal All Units 266Public Utility

(11 KV) 264 262

Name of theTariff

Scheme

Optional Tariff Scheme

Consumercategory

Name of theTariff

Scheme

Consumption permonth in KWH

Energy Charge

P/kWh

Consumercategory


Energy Charge

261 259

200

258

Rate F(at) 200Normal -

TOD

All Units 262 260

2 Normal All Units 265Rate F(a) 263 261

3

Rate E(a)

Public Utility(33 KV)

200Normal All Units 367 366 365 200

4 Rate F(b) Normal All Units 347 345 Rate F(bt)343 200

HIGH & EXTRA HIGH VOLTAGE CONSUMERS

Industries(11 KV)

Industries(33 KV)

Normal -TOD

200

P/kWh

All Units 263

200Normal -

TODRate E(at)

Rate E(bt) Normal -TOD

200

Rate E(b)

(Rs./ KVA/month)

(Rs./ KVA/month)



Annexure A3

DemandCharge

DemandCharge


SlNo


Name of theTariff

Scheme


Consumercategory

Name of theTariff

Scheme


Energy Charge

P/kWh

Consumercategory


Energy Charge


P/kWh(Rs./ KVA/

month)(Rs./ KVA/

month)

06.00 hrs-17.00 hrs

All Units 330 328 326

17.00 hrs-23.00 hrs

All Units 495 492 489

23.00 hrs-06.00 hrs

All Units 228 226 225

06.00 hrs-17.00 hrs

All Units 322 320 318

17.00 hrs-23.00 hrs

All Units 483 480 477

23.00 hrs-06.00 hrs

All Units 222 221 219

06.00 hrs-17.00 hrs

All Units 320 318 316

17.00 hrs-23.00 hrs

All Units 448 445 442

23.00 hrs-06.00 hrs

All Units 211 210 209

06.00 hrs-17.00 hrs

All Units 326 324 325

17.00 hrs-23.00 hrs

All Units 489 486 488

23.00 hrs-06.00 hrs

All Units 163 162 163

06.00 hrs-17.00 hrs

All Units 380 376 378

17.00 hrs-23.00 hrs

All Units 532 526 529

23.00 hrs-06.00 hrs

All Units 251 248 249

200 Rate I(bt) Normal -TOD

200All Units 327 325 3236 Industries(220KV)

Rate I(b) Normal

200 Rate H(bt)Normal -

TOD200All Units 332 330 3285

Industries(132 KV)

Rate H(b) Normal

RateS(cpt)

Normal -TOD

8CommunityIrrigation/Irrigation

Normal -TOD NilRate S(gt)

2009

Normal All Units 3257 321Normal -

TOD200Rate J(b)

CommercialPlantation

323 Rate J(bt)200Industries(400 KV)

NOT APPLICABLE

NOT APPLICABLE



Annexure A3

DemandCharge

DemandCharge


SlNo


Name of theTariff

Scheme


Consumercategory

Name of theTariff

Scheme


Energy Charge

P/kWh

Consumercategory


Energy Charge


P/kWh(Rs./ KVA/

month)(Rs./ KVA/

month)

06.00 hrs-17.00 hrs

All Units 345 341 343

17.00 hrs-23.00 hrs

All Units 483 477 480

23.00 hrs-06.00 hrs

All Units 228 225 226

06.00 hrs-17.00 hrs

All Units 390 386 38817.00 hrs-23.00 hrs

All Units 546 540 543

23.00 hrs-06.00 hrs

All Units 257 255 256

06.00 hrs-17.00 hrs

All Units 388 386 384

17.00 hrs-23.00 hrs

All Units 582 579 576

23.00 hrs-06.00 hrs

All Units 268 266 265

06.00 hrs-17.00 hrs

All Units 370 369 368

17.00 hrs-23.00 hrs

All Units 555 554 552

23.00 hrs-06.00 hrs

All Units 255 255 254

Normal

11

Short TermSupply for

CommercialPlantation

Normal -TOD

Short TermIrrigation Supply

Normal -TOD10

13 Normal

Commercial(11 KV)

RateE( c )

12

Commercial(33 KV)

RateF( c )

All Units 371 200

NOT APPLICABLE

Nil

RateF(ct)

Normal -TOD 200

All Units 390 388 200

200

200RateE( ct )

386 Normal -TOD

370 369

RateS(cpt-st)

RateS(gt-st)

NOT APPLICABLE



Annexure A3

DemandCharge

DemandCharge


SlNo


Name of theTariff

Scheme


Consumercategory

Name of theTariff

Scheme


Energy Charge

P/kWh

Consumercategory


Energy Charge


P/kWh(Rs./ KVA/

month)(Rs./ KVA/

month)

06.00 hrs-17.00 hrs

All Units 348 346 344

17.00 hrs-23.00 hrs

All Units 487 484 482

23.00 hrs-06.00 hrs

All Units 230 228 227

06.00 hrs-17.00 hrs

All Units 359 357 355

17.00 hrs-23.00 hrs

All Units 395 393 391

23.00 hrs-06.00 hrs

All Units 334 332 331

06.00 hrs-17.00 hrs &

20.00 hrs-23.00 hrs17.00 hrs-20.00 hrs All Units 399 396 393

23.00 hrs-06.00 hrs

All Units 181 180 179

06.00 hrs-17.00 hrs &

&

20.00 hrs-23.00 hrs

17.00 hrs-20.00 hrs

All Units 397 394 391

23.00 hrs-06.00 hrs

All Units 181 179 178

16Rate

E (pw)

Public WaterWorks &

Sewerage(33 KV)

359 357

348

NilAll Units 361

Public WaterWorks &

Sewerage(11 KV)

RateE(pwt)

Normal All Units

Normal -TOD

Normal -TOD

Nil

RateH(ct)

RateS(dt)

20014 Normal All Units 350Commercial(132 KV)

RateH(c)

15 DomesticRateS(d)

Normal

All Units 261 200

All Units

346 200

262 260

Normal -TOD

All Units

259

RateF(pwt)

258

263 261

200

266Normal -

TOD200

265 263

264 262

17RateF(pw)

Normal

200



Annexure A3

DemandCharge

DemandCharge


SlNo


Name of theTariff

Scheme


Consumercategory

Name of theTariff

Scheme


Energy Charge

P/kWh

Consumercategory


Energy Charge


P/kWh(Rs./ KVA/

month)(Rs./ KVA/

month)

06.00 hrs-17.00 hrs

All Units 255 254 25317.00 hrs-23.00 hrs

All Units 357 356 354

23.00 hrs-06.00 hrs

All Units 168 168 167

06.00 hrs-17.00 hrs

All Units 255 254 253

17.00 hrs-23.00 hrs

All Units 357 356 354

23.00 hrs-06.00 hrs

All Units 168 168 167

06.00 hrs-17.00 hrs

All Units 375 373 371

17.00 hrs-23.00 hrs All Units 525 522 519

23.00 hrs-06.00 hrs

All Units 248 246 245

06.00 hrs-17.00 hrs &20.00 hrs.-23.00 hrs

All Units 380 378 376

17.00 hrs-20.00 hrs

All Units 532 529 526

23.00 hrs-06.00 hrs

All Units 251 249 248

RateS(c )

Normal All Units

255

257 256

368

All Units

369

257 200

200

256

255

366 Nil

RateS(ft)

Normal -TOD

200

200Rate

S(ft-pi)

20 Normal

18

Sports Complex &Auditorium run byGovt./ local bodiesfor cultural affairs

19

Cold storage fornon perishableitems & Dairies

with Chilling Plant(11 KV)

RateS(f)

NormalCold storage forperishable items

(11 KV)

RateS(f-pi)

All Units

22ConstructionPower Supply

Rate S(con)Normal-

TOD

21Emergency

SupplyRateS(es)

Normal-TOD

Normal -TOD 200

200

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE



Annexure A3

DemandCharge

DemandCharge


SlNo


Name of theTariff

Scheme


Consumercategory

Name of theTariff

Scheme


Energy Charge

P/kWh

Consumercategory


Energy Charge


P/kWh(Rs./ KVA/

month)(Rs./ KVA/

month)

06.00 hrs-17.00 hrs

All Units 349 347 345

17.00 hrs-23.00 hrs

All Units 384 382 380

23.00 hrs-06.00 hrs

All Units 325 323 321

06.00 hrs-17.00 hrs &20.00 hrs.-23.00 hrs

All Units 365 363 361

17.00 hrs-20.00 hrs

All Units 511 508 505

23.00 hrs-06.00 hrs

All Units 241 240 238

25 Traction (25KV)

Rate T (a) Normal 345 343 340 200

26 Traction (132KV)

Rate T (b) Normal 315 313 310 200

06.00 hrs-17.00 hrs

All Units 340 338 336

17.00 hrs-23.00 hrs

All Units 374 372 370

23.00 hrs-06.00 hrs

All Units 316 314 312

06.00 hrs-17.00 hrs

All Units 380 378 376

17.00 hrs-23.00 hrs

All Units 418 416 414

23.00 hrs-06.00 hrs

All Units 353 352 350

All Units

200

351 347349 Nil Normal -TOD

27 Short-term SupplyNormal -

TOD

All Units

All Units

Rate S(st)

23

Bulk Supply at singlepoint to Co-operative

Group HousingSociety for providingpower to its members

or person forproviding power to itsemployees in a single

premises

Normal

24Common Services

of IndustrialEstate

RateE (ct-cs)

Normal -TOD

Rate S(co)

NOT APPLICABLE

NOT APPLICABLE

NOT APPLICABLE

Nil

NOT APPLICABLE

Rate S(cot)

All Units28Private Educational

InstitutionsRate

E (c-ei)Normal 382 380 378

200

RateE (ct-ei)

Normal -TOD 200200



West Bengal Electricity Regulatory Commission120

ANNEXURE–A4

POWER PURCHASE PRICE DETAIL BY WBSEDCL FROMDIFFERENT SOURCES

SlNo. POWER PURCHAE SOURCES PRICE IN

PAISA / UNIT1 WEST BENGAL RENEWABLE ENERGY DEVELOPMENT AGENCY 250.002 DAMODAR VALLEY CORPOARTION -132 KV 304.933 DAMODAR VALLEY CORPOARTION -33 KV 304.934 DAMODAR VALLEY CORPOARTION -11 KV 304.935 DAMODAR VALLEY CORPOARTION- Peak power for 6 hours daily 329.936 CHUKHA HYDRO POWER STATION FROM BHUTAN 160.147 KURICHHU HYDRO POWER STATION FROM BHUTAN 160.148 TALA HYDRO POWER STATION FROM BHUTAN 184.009 RANGEET OF NATIONAL HYDRO POWER CORPORATION 199.4010 FARRAKA STPS OF NATIONAL THERMAL POWER CORPORATION 168.43

11KAHELGAON STPS OF NATIONAL THERMAL POWERCORPORATION 168.43

12 TALCHER STPS OF NATIONAL THERMAL POWER CORPORATION 168.4313 DIFFERENT TRADERS 486.0014 RANGPOO OF SIKKIM 372.0015 ELECTRO STEEL 253.0016 CESC IN RADIAL MODE 266.06

17 HOOGHLY METCOCK 186.03Note: The price of purchase from sl no. 1 to 13 is subject to changes as per actual in accordance

with law.

PURCHASE PRICE OF WBSEDCL FROM WBPDCL GENERATINGSTATIONS IN PAISA / KWHR

Summer Monsoon WinterGENERATINGSTATIONS

Normal PeakOff-peak Normal Peak

Off-peak Normal Peak

Off-peak

Kolaghat TPS 191.40 197.40 187.40 189.40 195.40 185.40 187.40 193.40 182.40Bakreswar TPS 179.56 185.56 175.56 177.56 183.56 173.56 175.56 181.56 170.56Bandel TPS 211.05 217.05 207.05 209.05 215.05 205.05 207.05 213.05 202.05Santaldih TPS 199.15 205.15 195.15 197.15 203.15 193.15 195.15 201.15 190.15Bakreswar (New Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67Sagardih (new Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67Santaldih (New Unit) 191.67 197.67 187.66 189.67 195.67 185.67 187.67 193.67 182.67



SEASONWISE PURCHASE PRICE OF ELECTRICTY BYWBSEDCL FROM DPL

SEASONITEM

Time Slot SUMMER MONSOON WINTERENERGY RATE (paisa/Kwh) PEAK 245.66 245.66 245.66

NORMAL 242.66 242.66 242.66OFF_PEAK 240.76 240.76 240.76

SEASONWISE PURCHASE PRICE OF ELECTRICTY BYWBSEDCL FROM DPSCL

SEASONITEMTime Slot SUMMER MONSOON WINTER

ENERGY RATE (paisa/Kwh) PEAK 358.76 356.76 354.76NORMAL 356.76 354.76 352.76OFF_PEAK 353.76 351.76 348.76



ANNEXURE-B

1.0 In terms of Section 131 of Electricity Act 2003, WBSEB, after being reorganized

in accordance with the transfer scheme, has been replaced by West Bengal

State Electricity Distribution Company Limited (WBSEDCL) with effect from

1.4.2007 in so far as the functions and business in distribution activities and

activities related to hydro undertakings are concerned and all liabilities of

WBSEB in this regard have been vested in WBSEDCL.

The Commission issued certain directions vide Annexure-B to Chapter-10 in

the Tariff Order for the financial year 2006-07 to erstwhile WBSEB as a

Distribution Licensee. WBSEDCL, being the distribution licensee of the

licensed area of erstwhile WBSEB, the responsibility of complying with the

directives of the Commission vests on it.

The Commission’s observations in respect of the compliances of the directives

are as below:

2.0 The Commission directed the licensee (erstwhile WBSEB) vide Clause -1 of

the aforesaid Annexure to Chapter-10 to make a time bound plan for

implementation of 100% metered supply at the consumer end and submit it to

the Commission within 3 months. The licensee was directed to submit first

status report in regard to implementation of the plan within 3 months from

submission of the plan and submit the 2nd status report within 6 months

thereafter.

2.1 The Commission directed the licensee (erstwhile WBSEB) vide Clause 2(a) of

the Annexure to bring the consumers receiving un-metered supply under the



fold of metered supply. The Commission further directed to assign priority to

irrigation consumers followed by the street lighting.

2.2 In reply, WBSEB has submitted the report under cover of its letters dated

28.09.2006, dated 6.3.2007 and the report in the tariff petition of WBSEDCL

filed for 2007-08 which indicate:

i) All consumers receiving electricity at HV and EHV are provided with

proper metering.

ii) All L & MV domestic (except Lokdeep / Kutirjoyti), commercial,

industrial, PWW consumers receiving electricity are provided with

proper metering.

iii) All L & MV Rural Domestic consumers connected with MCB have

already been brought under metered connection.

iv) In WBSEB system, all DTW and RLI pump-sets are connected through

proper metering arrangement.

In their plan for implementation of 100% metered supply, WBSEB under the

same letter submitted a time bound programme for metered supply to the

remaining un-metered agricultural consumers. WBSEB has informed that the

licensee has undertaken a programme for implementation of installation of

energy meters and allied works for around 1,00,000 numbers of existing un-

metered agricultural consumers on turn-key basis. Orders have been stated

to have been placed on two firms for design, manufacturing, delivery,

installation, testing and commissioning of 3 phase outdoor type static TOD

energy meters covered in poly carbonate box. It has been stated that



WBSEB’s orders have been placed also for operation and maintenance

including replacement of damaged meters, taking meter readings and delivery

of energy bills for two years. As mentioned by WBSEB the work is expected

to be completed by April, 2008. In their subsequent report the WBSEB has

informed that upto 20th February, 2007 in the premises of around 23,950

numbers of un-metered agricultural consumers such meters and other

accessories have been installed. WBSEB has also informed the action being

taken for converting un-metered Lokdeep / Kutirjyoti connection to metered

supply in a phased manner. A time bound programme for installation of

meters in the premises of these consumers has also been stated to have

been initiated. WBSEB expects that the metering of these consumers would

be completed by March, 2007. In the subsequent status report, WBSEB has

informed that out of total 60,323 numbers of un-metered Lokdeep / Kutirjyoti

connection 31,426 numbers have been provided with meter supply upto

31.12.2006. WBSEB expected that the balance un-metered Lokdeep /

Kutirjyoti connection will also be provided with meter supply by March, 2007.

WBSEB informed that action has been initiated for preparation of a scheme

for metering of all street light points under the control of local bodies for which

WBSEB has sought the cooperation of Municipalities and Gram Panchayets.

In the status report it has been informed that necessary field survey for

metering of all street light points has already been carried out by WBSEB. It

is also informed that in many places re-arrangement of existing distribution

mains as well as construction of some new distribution mains are needed to

be executed before metering of street light point. WBSEB had already

completed metering of 2,119 numbers of points of street light till 31.12.2006

and is putting up all efforts to bring street lighting under the fold of metered

supply.



2.3 The Commission, therefore, directs WBSEDCL to indicate the number of

consumers under different categories who are being supplied with un-metered

electricity as on 31.3.2007. This information along with the programme of

completion of conversion of remaining un-metered supply under these

categories shall be submitted by the WBSEDCL to the Commission within 3

months from the date of issuance of this order.

3.0 The Commission directed WBSEB in the tariff order for 2006-07 vide clause-3 that

till dedicated feeders for effecting supply to agricultural consumers for irrigation

purpose are put in place, supply to such consumers who already received metered

supply and those who currently received un-metered supply but may have meters

installed in course of 2006-07, may be given an option to receive supply on TOD

basis. It was further directed that such optees may be allowed to pay cost of meters

in 8 equated instalments covering a period of any 24 months starting from the month

in which the meter is installed.

During the year 2006-07, WBSEB has reported to have taken massive

programme for conversion of all un-metered agricultural supply into metered

supply.

It has also been reported that 23,950 numbers of un-metered agricultural

consumers out of 1,00,000 such consumers have, by 20.2.2007, been

provided with TOD meters by WBSEB irrespective of any option.

WBSEDCL has further informed that the billing on TOD basis for these

consumers will, however, commence from 1.4.2007. In the case of

agricultural consumers receiving metered supply the change over to TOD

system has, according to WBSEDCL’s report, not made much progress

because of poor response of the consumers to opt for TOD meters.



3.1 It has been reported by WBSEDCL that 1548 numbers of HV consumers, out

of which 1450 numbers being 11 KV consumers, 90 numbers being 33 KV

consumers and 8 numbers being 132 KV consumers have already been

brought under TOD tariff and this has caused a trend in shifting of load from

peak to off-peak.

In regard to introduction of TOD metering for industrial & commercial

consumers on optional basis, WBSEDCL has informed that notice was served

to industrial & commercial consumers having load of 35 KVA / 25 HP

explaining the features of TOD metering, encouraging them to adopt TOD

system of metering and asking for their option for changeover to TOD system.

WBSEDCL has further reported that they have received 7 options from 7

industrial consumers of Howrah and Burdrwan districts having load more than

25 KVA / 25 HP.

3.2 WBSEDCL is directed to approach the abovementioned agricultural,

industrial & commercial consumers who have not yet adopted TOD

system through letters and printed leaflets for acceptance of TOD

metering and at the same time try to find out the reason of non-

acceptance of TOD metering by these consumers. WBSEDCL shall

convince these consumers by removing the reasons of inhibition and

through proper counseling during taking the meter reading by direct

interaction, during sending the bill through written materials and during

collection of dues by personal interaction and by means of leaflets,

banners etc. at the Centre of Collection.

The first report in this regard may be submitted to the Commission after

four months but within six months of the issuance of this order. The



tariff petition for 2008-09 shall give a full report about the achievements

and failures in this regard.

4.0 WBSEB was directed to submit the scheme for wide application of prepaid

metering in all districts in phases along with detailed price break up of such

meters.

4.1 WBSEDCL along with the tariff petition for 2007-08 has submitted the report

indicating that 46 numbers of prepaid energy meters (both single phase and 3

phase) have been installed at the supply point to common service in some of

the housing complexes at Newtown as a pilot project. For raising the

consumers awareness steps have been taken to highlight the advantage of

prepaid meter through press release advertising in newspapers and through

advertisement on trolley in Salt Lake and Newtown area. Direct

interconnection with the consumers was also arranged to explain the different

features of the prepaid meter along with the benefits that may accrue out of it.

It has also been reported that leaflets containing advantages of using these

meters have been circulated to the consumers of Newtown and Salt Lake.

WBSEDCL has further suggested that multiple slab tariff system prevailing in

W.B needs to be simplified in respect of consumers to be covered under

prepaid energy meter. WBSEDCL has further pointed out that the price of the

meter is very high compared to the conventional electronic meter. The cost of

the vending station along with the associated hardware and licensee’s

software will further raise the effective cost of prepaid metering with optional

key pad. WBSEDCL has appealed for upward revision of meter rent for

prepaid meter to Rs.50/- and Rs.100/- per month for single phase and 3

phase meter respectively. WBSEDCL has alternatively proposed that the

cost of prepaid energy meter be paid by the consumer on optional basis with

the nominal meter rent of Rs.15/- per month. WBSEDCL has informed their



plan to introduce the prepaid energy meter at Newtown and Salt Lake on

optional basis. WBSEDCL has reported to have already inaugurated a

vender machine at Salt Lake area at Vidyut Bhawan. WBSEDCL has

submitted their plan for introduction of prepaid metering in the district town by

October, 2007.

The progress made by WBSEDCL in introducing the prepaid metering system

has been noted by the Commission with satisfaction.

4.2 It is now directed to expand the scope of use of such system among

more number of consumers in the State. The option for purchase of

prepaid meter by the consumers according to the specified standards

and make along with proven quality may be allowed to the consumers.

4.3 The Commission also directs WBSEDCL to furnish quarterly report on

the status of pre-paid meter installation programme already undertaken

showing the number of consumers with categories who have applied for

pre-paid meters, number of consumers in each category who have been

provided with pre-paid meters, etc along with the specific remedial

measures undertaken to remove the bottlenecks, if any, arisen during

such implementation programme. The reports shall also form a part of

the next tariff revision application.

5.0 In regard to the independent third party meter testing arrangement directed in

the tariff order for 2006-07, WBSEDCL has informed that this subject has

already been taken up with reputed engineering colleges within the State and

the matter is being pursued for early setting up of such facilities in meter

testing. A negotiation is also under progress with Central Power Research

Institute (CPRI) for providing the independent third party meter testing

facilities in their Eastern Regional Laboratory at Kolkata.



5.1 WBSEDCL is directed to continue its efforts to establish and

operationalise accredited independent third party meter testing

arrangement expeditiously and report to the Commission within six

months of the issue of this order.

6.0 In regard to the preparedness for becoming a successful ABT compliant

licensee, WBSEDCL in the tariff petition has reported the installation of proper

meter and successful participation in the mock exercise and UI accounting in

ABT mode. WBSEDCL has informed that UI ‘mock’ bills are being regularly

sent to the constituents by WBSEDCL. A separate set up of ALDC (Area

Load Despatch Centre) to facilitate the ABT mode of operation has been

reported to have been formed on behalf of WBSEDCL and the personnel to

operate the ALDC are reported to be receiving training at the SLDC.

6.1 WBSEDCL is directed to make their ALDC operational expeditiously so

that the implementation of ABT can be achieved as per the programme.

7.0 In regard to the directives of the Commission to promote and explore the

possibilities of purchase of power from renewable sources, WBSEDCL has

submitted in the tariff petition that WBSEDCL has already began the process

of purchasing of power from WBREDA from windmill and has signed an

agreement for purchasing of power generated from bio-gas plant project of

M/s. Mohan Dairy, Purulia. It has also been reported that power from

cogeneration sources have been purchased from such sources belonging to

private entrepreneurs. Power from small hydel project developed by the

private entrepreneur is also being purchased from April, 2006 onwards. It has

been reported that more than 4.3 MU of energy was purchased by WBSEB in the

year 2006-07 (upto February, 2007). WBSEDCL has also reported to have



entered into an agreement with three other private entrepreneurs for green

power. WBSEDCL is also reported to have negotiated with a few small hydel

plants and bio-mass based power plants. It has been reported that the

aggregated capacity of power to be generated from renewable and non-

conventional sources of energy by the intending developers is around 57.13

MW.

7.1 The Commission has noted the progress made by WBSEDCL in regard to

promoting renewable energy and procuring such energy from various

renewable sources.

7.2 The Commission directs WBSEDCL to pursue the procurement of

energy from renewable and cogeneration sources to achieve the target

set for the year 2007-08 in the relevant regulations of the Commission

and report the details of achievement within six months from the date of

issue of this order along with the final report in the tariff petition for the

year 2008-09. The Commission further directs WBSEDCL to open up

the scope for power purchase from grid connected solar energy

sources & from municipal solid wastes.

8.0 The Commission directed WBSEB to take action towards conservation of

energy by adopting energy efficient process and demand side management.

WBSEDCL in their tariff petition has submitted that the provisions included in

the tariff order passed by the Commission for the year 2006-07 for WBSEB

like introduction of TOD metering, voltage-wise graded load factor rebate and

surcharge, time graded power factor rebate and surcharge etc. had been

utilized by WBSEB for demand side management. It is reported that WBSEB

had introduced high voltage distribution supply system for agricultural

consumers. WBSEB has installed distribution substation of capacity 10 KVA,



11/ 0.4 KV for every two STW consumers minimizing loss in the peak period

and managing demand.

WBSEB is reported to have taken action for conservation of energy in its

office & HV / EHV substations by installing energy efficient lighting, neon

signs etc. New HV / EHV substations are being planned with such lighting

and in older substations the lighting system is being replaced. Solar cell

panels has been stated to have been installed at the headquarters of the

licensee. Capacitor banks are stated to have been installed and the process

is still continuing in various places.

8.1 WBSEDCL is directed to take all advantages of all the provisions of the

tariff order for demand side management and conservation of energy.

The licensee is further directed to encourage the consumers to use

energy efficient lamps, electronic regulators and other suitable gadgets

and is further directed to advise the consumers suitably to avoid higher

leakage in their installations and to provide suitable other advises to the

consumers for effecting energy conservation.

8.2 The Commission also directs WBSEDCL to submit a detailed plan of

programme on energy saving and conservation scheme, other than

power factor rebate and load factor rebate, for next five years as well as

its implementation programme along with the next tariff application.

9.0 The Commission in the tariff order for 2006-07 directed WBSEB to develop

Rural Electrification Distribution Backbone (REDB) with at least one 33 / 11

KV substation in every block appropriately networked and connected to the

State Transmission System along with at least one distribution transformer in



each village with particular attention to dalit bustees, tribal areas and

dwellings of weaker section of society.

It has been reported by WBSEDCL that a massive programme for

electrification of virgin mouzas / villages has been undertaken along with

intensification of presently electrified villages. System improvement works

have also been taken up. All these activities include installation of REDB. It

has been further reported that out of 37910 inhabited mouzas 32190 numbers

have been declared electrified by March, 2005. Programme of electrification

for 4283 numbers of mouzas has been taken up under RGGVY scheme. Out

of these, 3826 numbers of mouzas have been entrusted to 4 Central Public

Sector Undertakings and 457 numbers of virgin mouzas have been entrusted

to WBSEB (presently WBSEDCL). According to the report 497 numbers of

mouzas out of 3826 numbers of mouzas have been declared electrified upto

31.12.2006 whereas 284 numbers of mouzas out of 457 mouzas which was

entrusted to WBSEB has been completed by 31.1.2007. It has been reported

that system improvement work under Rural Infrastructure Development

Scheme and RGGVY Scheme for strengthening the distribution network and

for erection of at least one REDB substation has been taken up. It has been

further reported that presently most of the blocks of W.B are having REDB

substation for feeding of power to the existing consumers. Out of remaining

48 numbers of blocks, scheme for erection of new substation at 11 numbers

of blocks have been prepared and taken up with REC. De-centralised

distribution is also reportedly being executed by WBREDA by means of non-

conventional sources of energy.

9.1 WBSEDCL is directed to complete the installation of REDB in the State

expeditiously and monitor their effective utilization by proper

maintenance scheme, replacement (of defective equipment) scheme and

ensure appropriate service to the rural consumers. A report regarding



this shall be submitted along with the tariff petition of 2008-09 indicating

inter alia the coverage of dalit bustees, tribal areas and dwellings of

E.W.S.

10.0 WBSEB was directed to undertake periodic energy audits in their

establishment. WBSEDCL in their tariff petition for 2007-08 has submitted

the report in connection with the energy audit. It has been reported that

energy meters against all feeders at EHV substation & lines, HV substation &

lines and about 18,000 distribution transformers have already been installed

by WBSEB to facilitate energy audit. International Institute for Energy

Conservation (IIEC), a consultant, has been reported to have been engaged

from December, 2006 for energy auditing. Energy audit at Vidyut Bhavan, the

headquarters of the licensee has been stated to have been conducted.

10.1 WBSEDCL is directed to continue with the energy audit periodically in

all their establishments and accordingly take corrective action for

conservation of energy.

10.2 The Commission directs that WBSEDCL shall conduct energy audit for

all its hydro generating stations and 400 KV sub-stations and submit

report along with next tariff petition. The Commission also directs

WBSEDCL to conduct energy audit for PPSP within six months after all

its units are put under commercial operation and submit a copy of the

report to the Commission within six months from the date of

commercial operation. The report should also include the measurement

of actual efficiency of different systems and auxiliary consumption of

different equipments of Purulia Pumped Storage Project. Along with

this report WBSEDCL shall submit the report of the performance

guarantee test.



11.1 WBSEB was directed to approach its consumers particularly the bigger ones

for ensuring energy auditing and energy conservation activities. WBSEDCL

in its report in the tariff petition has submitted that a State Level Energy

Conservation Committee has been constituted by WBSEB. The committee in

consultation with National productivity Council is working towards

implementation of Energy Conservation Act within the State of West Bengal.

62 numbers of designated consumers in the State under Schedule -2(S) of

Energy Conservation Act 2000 have been approached for carrying out energy

audit in terms of the said act. Awareness programme among the consumers

of commercial and industrial category, school children, farmers etc. have

been arranged and week long programme for awareness campaign is

reported to have been organized in different parts of the State. The State

Level Energy Conservation Committee is reported to have approached the

Power Deptt., Govt. of W.B for creation of State Level Energy Conservation

Fund. National Energy Conservation Day is being observed with participation

of the representatives from other utilities and industrial houses of the State.

11.2 WBSEDCL is directed to continue with their efforts in energy

conservation and directed to try to quantify the energy saved as a result

of such efforts.

12.1 WBSEB was directed in the tariff order of 2006-07 to continue to give

adequate and appropriate publicity to the provisions of the WBERC

(Guidelines for Establishment of Forum for Redressal of Grievances of

Consumers and time & manner of dealing with such grievances by the

Ombudsman) Regulation 2006. It has been reported in the report submitted

by WBSEB along with their tariff petition for 2007-08 that a two-tier forum for

Redressal of Consumers Grievances has already been constituted by the



Board for awareness among the employees & information about the

provisions for Grievance Redressal System is stated to be prominently

displayed at all offices of WBSEB targeting the consumers. It has been

reported that monthly meeting at circle level is organized with the bulk

consumers to make them aware of the Grievance Redressal System.

Meetings are reported to have been organized at Burdwan (D) zone of

WBSEB and Behrampur (D) zone of WBSEB with the presence of high

officials of WBSEB, Ombudsman, Advocates working for WBSEB to address

the officials of the Board about the provisions of Grievance Redressal

Regulations. Several other such programmes have stated to have been

organized in district offices for the awareness of the personnel of WBSEB on

Grievance Redressal System.

12.2 The Commission directs WBSEDCL to make continuous efforts to

educate the consumers about their rights & responsibilities. It is further

directed that the procedure for redressal of the grievance of a consumer

as laid down in the Act and Regulations shall be displayed in all Cash

Collection Centers of WBSEDCL.

13.1 WBSEB was directed by the Commission to prepare a 5-year plan with

annual milestone for reducing T&D losses. WBSEB was further directed to

submit a report along with the tariff petition for 2007-08 incorporating therein

the details of efforts made for encouraging community participation, for

effective enforcement, for introduction of incentives for staff and consumers

and for technological up-gradation like reduction of LT / HT ratio and adoption

of HV distribution system etc.

In the report submitted by WBSEDCL along with their tariff petition for 2007-

08 it has been reported that the licensee has taken effective steps to reduce



T&D losses in order to gradually bring these losses at the acceptable

minimum level. It has been further reported that WBSEB has completed

metering at substations upto 11 KV feeders in two phases. Metering of

feeders for new substation are under progress in third phase. Distribution

Transformer (DTR) metering has also been reported to have been taken up

by the Board and in the first phase 10 numbers of APDRP town have been

stated to have been taken up. Out of total 13,502 numbers of DTR metering,

13,237 numbers of meters have been installed till 28.2.2007. It has been

further reported that the licensee is already carrying out massive programme

for installation of meters for all un-metered agricultural consumers, Lokdeep /

Kutirjyoti connection and street light points. In order to reduce the technical

losses the licensee is reported to have already erected several 132 KV & 33

KV substations, strengthened the distribution system and erected distribution

substation for increasing HT / LT ratio and for technical loss reduction.

Improvement in distribution network under APDRP scheme in three circles

and 16 district towns has been reported to have been taken up by the

licensee. High Voltage Distribution Supply (HVDS) system is stated to be

under implementation for power supply to agricultural consumers and also for

rural electrification programme in order to substantially reduce the technical

as well as commercial loss. For reducing overall ATC loss, Security & Loss

Prevention (S & LP) wing has been stated to have been strengthened. Theft

of electricity of around 20 MU every year by unauthorized means is being

detected by S & LP activity. It has been stated that S & LP wing had

organized 7,223 numbers of raid in 2005-06 in the licensed area of the

licensee and the target for conducting such raids has been further raised to

8,000 numbers, 9,600 numbers in the year 2006-07 and 2007-08

respectively. Important meetings are stated to have been held with high

police officials like DIG & SP at district levels for cooperation during detection

and prevention of theft. Spot billing facility introduced in some of the electric



supply stations of the licensee has also been stated to be utilized for reducing

commercial loss. It has been further reported that due to cumulative effect of

all the above activities ATC loss of WBSEB reduced from 37.86% in the year

2004-05 to 33.395% in the year 2005-06. For further reduction of ATC loss,

Geographical Information System (GIS) has been stated to have been taken

up by the Board to facilitate energy auditing, mapping and documentation of

entire power network of the licensee. Once the documentation is completed,

33 KV & 11 KV network will be planned properly on the basis of load flow

study through CYMDIST software which will according to the licensee reduce

the technical losses. The licensee has further reported that higher proportion

of low voltage sales in its licensed area is a factor for higher T&D losses

whereas in some of the districts high value consumers are stated to be

supplied by other licensees like DVC, DPSCL. It has been further reported

that the licensee is regularly taking action to avoid long 33 KV, 11 KV at LT

lines and to prevent overloading of transformers, other equipments and theft

of electricity. In the tariff petition for 2007-08 WBSEDCL has considered T&D

losses of 24.7% and has submitted a 5-year plan to reduce T&D losses to

21.6% in the year 2011-12 stated to be as per the approved restructuring plan

of Govt. of W.B.

13.2 The licensee, WBSEDCL has in their tariff petition of 2007-08 claimed a

T&D loss of 24.7%. Considering the comparative high proportion of L.T

supply, higher growth in L.T category due to massive rural

electrification activity under APDRP & RGGVY schemes and extension

of electricity supply to far flung areas the Commission has allowed T&D

loss of 22.91% for 2007-08 to the licensee. Regarding programme of

reducing T&D loss during next five years the Commission has already

engaged expert consultant whose reports are expected soon. On



receipt of this report the Commission shall take a view on the

programme of reduction of T&D loss.

14.1 In the tariff order of 2006-07 the Commission directed WBSEB to make a

detailed time bound programme for supplying power to those areas where its

load is presently supplied with power through radial mode of connection with

other licensees.

WBSEDCL in the report in this regard submitted with the tariff petition for

2007-08 has given the details of the activities being undertaken by the

licensee to take over the load of Asansol area which is now being supplied

with power radially from DPSCL and DVC substations. It has been reported

that WBSEB has erected one 220/132 KV substation at Asansol where one

160 MVA transformer and one 50 MVA transformer have already been

installed and 11 numbers of 33 KV Bays have been erected. Considering the

future load of Asansol the substation is being further strengthened by

doubling the MVA capacity. It has been reported that by this arrangement 4

numbers of 33 / 11 KV substations of WBSEB which are now being fed from

Kalipahari substation of DVC will be fed from the newly erected Asansol

substation of WBSETCL within next few months. It has also been reported

that WBSEB will then be able to supply the power to their own consumers of

Asansol area directly from WBSEB grid but the total area can be given power

from WBSEB grid in second phase when further 3 numbers of 33 / 11 KV

substations and incoming 33 KV lines from newly erected Asansol substation

including outgoing 11 KV lines are completed.

14.2 WBSEDCL is directed to submit the report within 3 months from the

date of issue of this order regarding the progress of taking over the load

of the area to be fed from Asansol 220 KV substation. WBSEDCL is



further directed to expedite the second phase of work for construction

of Niyamatpur 33 / 11 KV substation, Domohoni 33 / 11 KV substation,

Mongalpur 33 / 11 KV substation along with their incoming 33 KV lines

from Asansol 220 KV substation and outgoing 11 KV lines. The

progress made in this regard shall also be included in the aforesaid

report.

15.0 WBSEB was directed to show the impact on revenue requirement of 2006-07

with required adjustment if any to be made in 2007-08 due to introduction of

new consumer categories, graded rebate and surcharge on load factor &

power factor, introduction of TOD scheme in new areas. It has been reported

by WBSEDCL in the report submitted along with the tariff petition of 2007-08

that the impact of introduction of TOD scheme in new areas and for

introduction of new consumer categories on revenue requirement was

marginal only. In case of bulk consumers, however, the effect of graded

rebate and surcharge for load factor & power factor was noticeable. It has

been reported that higher rebate amount to the tune of Rs.15.62 crore was

considered in the year 2006-07 in the tariff petition of WBSEB. For the rebate

and surcharge on power factor an additional allowance to the tune of

Rs.12.66 crore is required.

16.0 WBSEDCL shall organize awareness programme among its working

personnel particularly with reference to standards of performance of the

licensees, supply code, grid code and various other requirements of the

Electricity Act 2003 and the Regulations of this Commission made thereunder

so as to ensure that WBSEDCL’s own employees become aware of this

requirement and conduct their official business strictly in terms of the

provisions of the Act and the Regulations made thereunder.



17.0 WBSEDCL shall continue to give adequate and appropriate publicity to the

provisions of the West Bengal Electricity Regulatory Commission (Guidelines

for Establishment of Forum for Redressal of Grievances of Consumers and

Time and Manner of Dealing with Such Grievances by the Ombudsman)

Regulations, 2006 and shall submit a report to the Commission describing the

actions taken at the time of submission of the next year’s tariff petition. The

same report shall also contain a detailed picture of how the complaints of the

consumers are being redressed.

18.0 WBSEDCL shall also draw up and implement urgently a programme for

increasing the awareness of the consumers of the salient features of the

Electricity Act 2003 and the Regulations made thereunder, particularly those

that lay down the rights and the duties of the consumers as also the

standards of performance of the licensees and the ways and means to

redress consumer grievances. A status report on the matter indicating both

quantitative and qualitative aspects, should be submitted to the Commission

along with the next tariff revision petition.

19.0 In its tariff applications for the second control period and onwards, WBSEDCL shall

provide all data related to load factors computation for each stratum of load factor

range of 5% starting from 20% load factor to 90% load factor. Similar data for

stratum of load factor range of 2% starting from 90% to 100% range shall be

submitted in the said applications. In its tariff applications for the second control

period and onwards, WBSEDCL shall also provide all data related to power factors

computation for each stratum of power factor range of 1% starting from 85% power

factor to 98% power factor.

20.0 WBSEDCL shall show the power procurement from different sources below

132 KV separately along with showing the sources independently.



21.0 WBSEDCL is directed to indicate proposed fixed charge in terms of per KVA per

month instead of per consumer per month for all categories of LV and MV

consumers in its tariff applications for the second control period and onwards.

WBSEDCL shall also indicate similarly the proposed demand charge in terms of per

KVA per month for all categories of HV and EHV consumers in its tariff applications

for the second control period and onwards.

22.0 WBSEDCL is directed to submit a report to the Commission within six months of

this order showing the number of consumers and their consumptions under all new

categories both on actual basis and on projection basis. The report should also

include status and projection for those classes of consumers who have no drawal at

present. The report shall also form a part of the next application for annual

performance review of the second control period.

23.0 WBSEDCL shall also make survey for determination of energy consumption pattern

and load pattern of all new categories of consumers for all three seasons for peak,

normal and off-peak period. The report of such survey shall be submitted to the

Commission with the application for annual performance review for the first year of

the second control period.

24.0 WBSEDCL shall also start to conduct safety audit in phased manner and submit the

report with the next tariff application to the Commission.

25.0 All the reports called for in this chapter are in addition to those, which are

statutorily required, either by the Act, or by any of the Regulations made

thereunder, or by any of the Regulations made thereunder, or by both for the

purpose of submission of next tariff revision petition. In case of non-

submission of such report, the Commission shall take necessary action as

deemed fit.



26.0 WBSEDCL shall show the impact on revenue requirement of 2007 – 2008 in

the tariff petition of 2008 – 2009 with requirement of adjustment, if any, to be

made in 2008 – 2009 due to introduction of new consumer categories in new

areas in this order.

27.0 WBSEDC shall, within three months, submit a statement to the Commission

showing the details of the plan and non-plan loans received from the State

Government for capital works indicating therein the Govt. order number, date,

amount of loan, the capital work for which the loan was received and the

asset(s) created in each case. A copy each of the relevant Govt. orders shall

be enclosed with the statement. This direction is in continuation of the

direction contained in the last sentence of foregoing paragraph 6.8(e). In

case this report is not, for any reason beyond the ability of WBSEDCL to

control, ready within the aforesaid period of three months, WBSEDCL shall

submit the same within six months from the date of the instant order. This

statement shall also be submitted with the next tariff revision petition.

28.0 WBSEDCL shall maintain separate accounts for SHRELCOP and discharge

all the functions of a licensee in respect of the erstwhile licensed area of

SHRELCOP until a new distribution licensee is appointed by the Commission

for that area.

Sd/- Sd/- Sd/-

R. P. SAMADDAR PRITITOSH RAY S. N. GHOSHMEMBER MEMBER CHAIRPERSON

DATE: 01.08.2007

Corrigendum to the Tariff Order dated 01.08.2007 of the Commission in respect

of West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) in Case No.:

TP - 35/07-08

Correction of typographical errors/ apparent mistakes in the Tariff Orders dated

01.08.2007 in respect of WBSEDCL for the year 2007-08

Page

No.

Nomenclature Existing

Description

Corrected

Description

69 Paragraph 5.9.1 – 5th

line – 8th

& 9th

words inspite of in view of

102 Paragraph 8.2.2.7 – 7th

line (counting from

the beginning of the paragraph at page 101)

– 9th

word

before after

112 Annexure A2 – Last entry against Sl. No. 12

relating to Industry (Urban), under sub-

heading “Monthly consumption in KWH”,

to the column with heading “Applicable

Tariff Scheme”

Above 3500 Above 2000

137 Paragraph 13.2 – 6th

line – 3rd

word 22.91% 22.72%

Sd/- Sd/- Sd/-

(R.P.SAMADDAR) (PRITITOSH RAY) (S.N.GHOSH)

MEMBER MEMBER CHAIR PERSON

DATE: 09.08.2007

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