Section 4-Wheeling charges and losses

18. Wheeling Charges and losses

18.1. Discoms have proposed ARR for their wheeling business as a part of total
ARR by segregating ARR into wheeling and retail business for FY 2012-13 in
accordance with Regulation 128 of RERC (Terms and conditions of Tariff)
Regulations, 2009 as under:

Table-56 ARR for Wheeling charges- proposed by Discoms

(Rs. crore)
Particulars JVVNL AVVNL JdVVNL
Net Aggregate Revenue Requirement
for FY 2012-13 (A) 12108 8523 9685
Less
Cost of Power Purchase for FY 2013 7491 4410 5382
Interest Payable on security Deposit of
consumers for FY 2013 30 15 14
Transmission Charges for FY 2013 811 649 673
10% of O&M Expenses for FY 2013 64 39 49
Total (B) 8396 5115 6118

Wheeling Charges for FY 2012-13 (in

Crores)(A-B) 3712 3408 3567
Energy to be required to be wheeled
(MU) 21977 13783 16610
Wheeling Charges (Rs./KWh) 1.69 2.47 2.15

18.2. Regarding wheeling charges at 132 kV level the Discoms submitted that they
do not have the fixed assets at 132 KV level but help the open access
consumers in installation of lines & poles and claimed that the fees charged
is on account of customer service cost (mainly costs associated with
metering, billing and collection and that such cost associated with metering,
billing and collection at 132 KV level has increased. Discoms requested to
consider the normative A&G expenses of 3 paise per unit at 132 KV level as
the cost of providing customer service to 132 KV level consumers and allow
the wheeling charge @ 3p/KWh from EHT consumers on account of increase

81
 in the manpower cost, metering equipment, and related administration
expenses. Regarding apportionment of assets the Discoms stated that no
apportionment of gross fixed assets is done at 132 KV level as the assets
attributable to supply at 132 KV level includes transformers (220/132 KV) and
lines (132 KV)which belong to RVPN and are considered in transmission
charges. Discoms further submitted that the wheeling charges for 33 KV, 11
KV and LT level are inclusive of customer service cost and hence, no
separate charges towards service for the consumers at 33 KV, 11 KV and LT
voltage level have been worked out.
18.3. Regarding wheeling charges at 33 kV and lower voltage levels Discoms
submitted that though the wheeling charges should be apportioned supply
voltage wise on the basis of fixed cost allocated or specified in the fixed
asset registers but they presently do not maintain account of their costs on a
voltage-wise basis and it is not possible for them to segregate GFA among
voltage levels directly. The Discoms also referred the Commission’s order
dated 19.09.2006 vide which Commission considered the percentile
allocation of 33 KV, 11 KV & LT system, as 18.3%, 31.1% and 50.6% and stated
that they have also considered the same apportionment of network cost i.e.
18.3% at 33 KV, 31.1% at 11 KV and 50.6% at LT level for apportionment of
cost to different voltage levels.
18.4. The Discoms proposed the following wheeling charges at different voltage
level.

Table-57 Wheeling charges at different voltage level as proposed by Discoms

(Rs/unit)
AVVNL JdVVNL
Particulars JVVNL

Wheeling Charges at 132 KV Voltage

Rs. 0.03/ KWh Rs.0.03/KWh Rs. 0.03/KWh
Level

Wheeling Charges at 33 KV Voltage Level Rs. 0. 31/ KWh Rs.0.45/KWh Rs. 0.39/KWh

Wheeling Charges at 11 KV Voltage Level Rs. 0.53/ KWh Rs.0.77/KWh Rs.0.67/ KWh

Wheeling Charges at LT Voltage Level Rs. 0.85/ KWh Rs. 1.25/KWh Rs.1.09/ KWh

82
 System losses

18.5. The Discoms stated that in absence of any study for assessment of technical
losses at various voltage levels, the loss levels already approved by the
Commission vide order dated 19.9.2006 have been taken as under:

Table- 58 System losses at each voltage level as proposed by Discoms

system Losses of
System Voltage Cumulative loss
Discoms
132 KV 0.00% 0.00%
33 KV 3.80% 3.80%
11 KV 8.80% 12.60%
LT KV 16.55% 29.15%

Commission’s Analysis and Decision

18.6. As has been discussed earlier , stakeholders have raised objections in
respect of non availability of data regarding voltagewise losses and
absence of data for apportionment of wheeling charges supply
voltagewise on the basis of fixed asset at each voltage level.
18.7. The Commission observes that the petitioners have neither provided data
required under the Regulations for calculation of wheeling charges nor any
specific difficulty encountered in furnishing the same has been explained.
Further, justification of methodology adopted for calculating the wheeling
charges as proposed in the petition has also not been furnished.
18.8. In view of the above, the Commission is not in a position to proceed further
on the proposal of Discoms regarding determination of wheeling charges
and losses at various voltage levels and directs them to file a fresh petition
for determination of wheeling charges for 2012-13. Till then wheeling charges
and losses, being charged presently, shall continue to be charged.

----------

83
 Section 5-Tariff proposals and approved tariff
19. Tariff proposals
As discussed in the foregoing paragraphs, even after taking the effect of
improved Transmission & Distribution Losses, allowing of interest and other
expenses on normative basis and accounting for the subsidy expected from
the State Government, an uncovered gap of Rs. 1870, 1798 and 2946 crores
would remain for JVVNL, AVVNL & JdVVNL respectively at existing tariff. This
amounts to a deficit of Rs. 6614 crores for all Discoms put together.
19.1. Discoms have proposed revision of tariff which would lead to an additional
revenue of Rs. 3267 crore for Discoms during 2012-13, as follows:
Table:59-Expected additional revenue as proposed by Discoms for FY 2012-13 (Rs. Crore)

Particulars Expected additional

revenue
JVVNL 1371
AVVNL 859
JdVVNL 1037
Total 3267

19.2. As discussed earlier, a large gap still remains as difference in average Cost of
Supply and average realization is very high. Therefore, a revision of tariff to
cover the revenue deficit seems not only justified but is inescapable.
20. Determination of tariff
20.1. In finalizing the tariff for different consumer categories, the Commission has
given due consideration to the proposals of licensees, comments of
stakeholders and decisions of the Commission thereon and the position of
cross subsidy. The Regulations of the Commission as well as National Tariff
Policy visualize cross subsidy to be in +/ - 20% range of average cost of supply
and this has also been kept in view.
20.2. This tariff revision is only the second consecutive annual tariff revision after the
National Tariff policy came into force – the last revision in September, 2011
being after gap of approximately 6 Years 9 Months. The past accumulated
revenue deficit due to gap in annual revenue revision can be wiped out only
in a progressive manner and that too with the support of the State Govt.
through appropriate financial restructuring plan.

84
 20.3. Commission has also kept in view the fact that the tariff increase allowed last
year was quite high and successive high tariff increases would result in tariff
shock. However, the average realization from agriculture sector, still being too
low in comparison to average cost of supply, a significant increase is
inescapable for this category. The licensees have also proposed significant
increase in this category.
20.4. Discoms have stated that they will be receiving subsidy from State Govt. for
certain categories. The tariff has been determined for each category without
subsidy but the subsidy indicated by Discoms has also been mentioned. The
subsidy to be provided by the Govt. would result in amount payable by
consumer of such category getting reduced by the subsidy amount.
20.5. Category wise specific proposals of the Discoms and approval of the
Commission are being discussed in following paras.

21. Category wise Tariff

21.1. Domestic Service (LT-1 and HT-1)
The petitioners have proposed fixed charges based on the sanctioned load or
connected load (whichever is higher) basis for all LT domestic consumers
except BPL and small domestic consumers. Further, since the consumers load
verification would be voluminous task, the petitioners have also proposed
minimum fixed charges per consumer.
21.1.1. No increase in fixed charges has been proposed for BPL and small domestic
consumers. In case of HT domestic category, the licensees have proposed an
increase in fixed charges from Rs125 per KVA of billing demand per month to
Rs 150 per KVA of billing demand per month.
21.1.2. They have proposed to raise energy charges from Rs 2.25 to Rs 2.75 per unit for
BPL consumers and from Rs 2.50 per unit to Rs 3.00 per unit for small consumers
(with average consumption of not more than 50 units per month). Similar
increase has been proposed for general consumers for first 50 units.
21.1.3. In case of general consumers the rates for further consumption upto 150 units
are proposed to be raised from Rs.4.00 per unit to Rs.4.80 per unit.
Consumption above 150 units and upto 300 units is proposed to be charged
at Rs.5.00 per unit against existing Rs.4.15 per unit. The rate of consumption
above 300 units has been proposed to be Rs.5.25 per unit in place of existing
Rs.4.35 per unit.

85
21.1.4. The petitioners have also proposed to levy fixed charges on the basis of load.
A number of stakeholders pointed out that this would lead to harassment of
the consumers as the verification of actual load at the consumer premises
would be necessary and possibility of inaccurate verification can not be ruled
out. It was also pointed out by the stakeholders that the proposal also does
not seem workable as the existing manpower is not able to even maintain the
existing system efficiently. The Commission finds that if the proposal is
accepted it may lead to a situation where in absence of actual verification of
load, the consumers may be subjected to minimum charges which otherwise
may not be payable considering the actual load. The Commission, therefore,
does not accept the proposal of levying fixed charges based on load for
domestic LT category.
21.1.5. The petitioners have also proposed that for large buildings, colonies and
group housing, solar water heater rebate may be given if they have installed
solar water heater plant which would be sufficient for all the residents. The
proposed rebate is 5% on total consumption. A number of stakeholders
objected to this proposal on the ground that it would require verification of
required capacity of solar water heaters and regular monitoring of solar water
heating arrangements remaining in existence. The Commission finds merit in
the contention of stakeholders and therefore is not inclined to allow the
proposed rebate for solar water heating system for large buildings, colonies
and group housing as proposed by the Discoms.
21.1.6. The petitioners have also submitted that to encourage single point metering
on HT supply for large buildings, colonies and group housing it is proposed to
allow non-domestic use for its residents upto 10% i.e. for shopping centers,
health clubs etc. Individual residents will however, continue to be charged
only as per retail tariff decided by the Commission.
21.1.7. In existing applicability of HT Domestic Services, upto 5 kW pumping load for
water supply and load of maximum five shops is permitted. In view of
comments of stakeholders and in light of issues raised by stakeholders
regarding the process of verification of NDS use , the Commission does not
accept the proposal of Discoms in this regard .
21.1.8. A large no. of stakeholders in their written as well as oral submissions opposed
the proposed tariff hike stating that last tariff increase was also substantial
and second tariff revision in a span of less than one year will cause them tariff
shock . The Commission while determining the tariff has suitably considered
the views of the stakeholders and slightly readjusted the tariff accordingly.
86
21.1.9. The Existing, proposed tariff and that approved by the Commission is given in
the following tables.
Table:60-Domestic Category Existing and Proposed tariff for FY 2012-13
Existing Tariff Proposed Tariff

Category Energy Charges Fixed Charges Category Energy Charges Fixed Charges

Subsidy Subsidy
Effecti
indicate indicate Effectiv
ve EC
d to be d to be e EC
Domestic EC after Domestic EC
receive receive after
subsid
d from d from subsidy
y
GoR GoR
LT-Domestic ( LT-1) LT-Domestic ( LT-1)
B P L* B P L*
Rs 80/ Rs 80/
connection/ connection/
month (effective month (effective
Consumpti Consumptio
Rs. Rs Rs FC Rs 50 Rs. Rs FC Rs 50
on upto first n upto first Rs 1.90/
2.25/ 1.40/ 0.85/ /connection 2.75/ 0.85/ /connection
50 units per 50 units per unit
unit unit unit /month after unit unit /month after
month month
subsidy of Rs. subsidy of Rs.
30/connection/m 30/connection/m
onth) onth)
Small Domestic (Consumption up to 50 units/month)# Small Domestic (Consumption up to 50 units/month)#
Consumpti
Consumpti Rs Rs Rs on up to Rs
Rs 80/ connection Rs 3.00/ Rs 1.30/ Rs 80/ connection
on up to 50 2.50/ 0.80/ 1.70/ 50 1.70/
/ month unit unit / month
units/month unit unit unit units/mont unit
h
General Domestic (Consumption above 50 units/month) General Domestic (Consumption above 50 units/month)
(i) For
(i) For
consumpti
consumptio Rs Rs Rs 140/ Rs Rs 50/ kW / month
on upto Rs 3.00/
n upto first 2.50/ 2.50/ connection / 3.00/ Minimum Rs 175
first 50 unit
50 units per unit unit month unit per month
units per
month
month
(ii) For (ii) For
consumptio consumpti
Rs 50/ kW / month
n above 50 Rs Rs Rs 140/ on above Rs
Rs 4.80/ Minimum Rs 175
units and 4.00/ 4.00/ connection / 50 units 4.80/
unit per
upto 150 unit unit month and upto unit
month/consumer
units per 150 units
month per month
(iii) For (iii) For
consumptio consumpti
Rs 50/ kW / month
n above Rs Rs Rs 150/ on above Rs
Rs 5.00/ Minimum Rs 200
150 units 4.15/ 4.15/ connection / 150 units 5.00/
unit per
and upto unit unit month and upto unit
month/consumer
300 units 300 units
per month per month

(iv) For (iv) For

Rs 50/ kW / month
consumptio Rs Rs Rs 180/ consumpti Rs
Rs 5.25/ Minimum Rs 240
n above 4.35/ 4.35/ connection / on above 5.25/
unit per
300 units unit unit month 300 units unit
month/consumer
per month per month

87
 HT – Domestic (HT-1) HT – Domestic (HT-1)**
For For
Rs.
contract Rs. Rs. Rs. 125 per kVA of contract Rs. Rs. 150 per kVA of
5.00
demand 4.15/ 4.15 / Billing Demand demand 5.00/ Billing Demand
/
over 50 unit unit per month over 50 unit per month
unit
kVA kVA
*applicable for BPL card holders only
# No subsidy will be allowed for consumption above 50 units during the respective month on
entire consumed units.

Table:61-Domestic Category (LT-1 ad HT-1) )-Approved tariff for FY 2012-13

Domestic Category
EC Subsidy indicated to Effective EC Fixed Charges
be received from after subsidy
Domestic GoR

LT-Domestic ( LT-1)
B P L*
Rs. 2.75/ Rs 1.90/ unit Rs 0.85/ unit Rs 80/ connection/ month (effective FC Rs 50
Consumption upto
unit /connection /month after subsidy of Rs.
first 50 units per
30/connection/month)
month

Small Domestic (Consumption up to 50 units/month)#

Rs 3.00/ Rs 1.30/ unit Rs 1.70/ unit Rs 80/ connection / month
Consumption up to unit
50 units/month

* Note: The BPL domestic tariff shall be exclusively applicable to individual consumer /person and shall not be
applicable to any institution. In case any BPL consumer has consumed more than 50 units per month in any
billing cycle, the consumer will be charged as per the applicable tariff of the respective slab under the LT-I
domestic category for the additional units consumed.

# Subsidy is admissible only if consumption doesnot exceed 50 units in any month.

General Domestic (Consumption above 50 units/month)

General Domestic-1 (Consumption upto 150units/month)

Energy Charges Fixed Charges

(i) For consumption upto first 50 units per month Rs 3.00/ unit

Rs 160/ connection / month

(ii) For consumption above 50 units and upto 150 units
Rs 4.65/ unit
per month

General Domestic-2 ( Consumption above 150 units and upto 300units/month )

Energy Charges Fixed Charges

(i) For consumption upto first 50 units per month Rs 3.00/ unit

(ii) For consumption above 50 units and upto 150 units

Rs 4.65/ unit
per month Rs 175/ connection / month

(iii) For consumption above 150 units and upto 300 units
Rs 4.85/ unit
per month

88
 General Domestic-3 (Consumption above 300 units/month)
Energy
Fixed Charges
Charges
(i) For consumption upto first 50 units per month Rs 3.00/ unit
(ii) For consumption above 50 units and upto 150 units
Rs 4.65/ unit
per month
(iii) For consumption above 150 units and upto 300 units Rs 210/ connection / month
Rs 4.85/ unit
per month

(iv) For consumption above 300 units per month Rs 5.15/ unit

HT – Domestic (HT-1)**
Energy
Fixed Charges
Charges

For contract demand over 50 kVA Rs. 4.95/ unit Rs. 140 per kVA of Billing Demand per month

Re Categorization of Farmhouse category

21.1.10. The Discoms proposed to consider the farm house connection at par with the
Domestic consumers by considering the same in the appropriate domestic
category.

21.1.11. Some of the stakeholders stated that farm house be covered in Non Domestic
category while some said that it should not get included in domestic
category. However, the Discoms stated that they have proposed the farm
house category under domestic category as the farmhouse is similar to
domestic category and they feel that it would be unjust for charging farm
house’s with commercial tariff. Farm house/ resorts if used for wedding
purpose are already billed in NDS tariff.

21.1.12. In reply to Commission’s query the Discoms stated that consumption of

electricity in farmhouse is predominantly a domestic activity. They also
clarified that the use of place is verified by the official of Discoms whether the
connections falls under a particular category or not. Accordingly while
accepting the proposal of Discoms to consider the farm house connection at
par with domestic category the Commission also directs that in case activities
other than domestic use are being carried out in a farm house, the
connection shall be suitably recategorised as per provisions of Tariff and
Regulations.

89
 21.2. Non-Domestic Service (LT-2 & HT-2) :
21.2.1. The Discoms in respect of consumers upto 5 kW of sanctioned connected
load have proposed for fixed charges based on the sanctioned or connected
load (whichever is higher) also at par with the other non-domestic consumers
having sanctioned connected load above 5 kW and minimum fixed charges
per consumer to recover adequate proportion of the fixed charges. At
present consumers having consumption upto 200 units/month are being
levied fixed charge of Rs.150 per connection per month which is proposed to
be changed to Rs.75/kW/month with a minimum of Rs.200/month for
consumption upto first 100 units/month and to Rs.75/kW/month with a
minimum of Rs.250 /month for consumption above 200 units per month. The
existing fixed charges of Rs.180 /connection/month for consumption above
200 units per month is proposed to be changed to Rs.75/kW/month with a
minimum of Rs.300/month.
21.2.2. For categories with sanctioned connected load higher than 5 KW of SCL,
Discoms have proposed an increase in fixed charges from Rs60/KW of SCL per
month to Rs75/KW of SCL per month. In the case of HT non-domestic
category, the licensees have proposed an increase in fixed charges from
Rs125/KVA of billing demand per month to Rs 150/KVA of billing demand per
month.
21.2.3. It has been argued that since cost of supply has increased, the energy
charges be increased from Rs.5.10 per unit to Rs.6.00/unit for consumption
upto first100 units per month, from Rs.5.50 per unit to Rs.6.25 per unit for
consumption above 100 units and upto 200 units and from Rs.5.90 per unit to
Rs.6.75 per unit for consumption above 200 units per month. In the case of HT
non-domestic category, the licensees have proposed an increase in energy
charges from Rs5.90 per unit to Rs 6.75 per unit.
21.2.4. The Commission does not approve the proposal of levying fixed charges
based on sanctioned load together with a provision for minimum fixed
charges for non-domestic LT category consumers having sanctioned
connected load upto 5 kW because of problems relating to verification of
load as discussed in case of domestic consumers.
21.2.5. Many stakeholders stated that the proposed tariff for NDS is too high and
beyond the limit of +20% of average cost of supply as stipulated in National
Tariff policy and Regulations. The Commission while determining the tariff has

90
 kept in view the average cost of supply and realization from this category and
has allowed lower tariff increase than proposed to limit the cross subsidy.
21.2.6. The proposed tariff and that approved by the Commission is being given in
the following tables
Table:62-Non-Domestic Category(LT-2 and HT-2)- Existing and Proposed tariff for FY 2012-13

Existing Tariff Proposed Tariff

Non-Domestic Energy Charges Fixed Charges Non-Domestic Energy Charges Fixed Charges

LT-NDS(LT-2) LT-NDS(LT-2)
NDS up to 5 KW of SCL NDS up to 5 kW of SCL
Rs. 75/ kW/
Consumption upto Consumption
month
first 100 units per Rs.5.10/unit upto first 100 Rs.6.00/unit
Minimum Rs. 200
month Rs. 150/ units per month
per month
connection/
Consumption Rs. 75/ kW/
Consumption above month
above 100 units month
100 units and upto Rs.5.50/unit Rs.6.25/unit
and upto 200 Minimum Rs. 250
200 unit per month
unit per month per month
Rs. 75/ kW/
Rs.180/ Consumption
Consumption above month
Rs.5.90/unit connection/ above 200 unit Rs.6.75/unit
200 unit per month Minimum Rs. 300
month per month
per month
NDS above 5 KW of SCL NDS above 5 KW of SCL
Consumption upto Consumption
Rs.60/ kW of Rs. 75/ kW/
first 100 units per Rs.5.10/unit upto first 100 Rs.6.00/unit
SCL / month month
month units per month
Consumption
Consumption above
Rs.60/ kW of above 100 units Rs. 75/ kW/
100 units and upto Rs.5.50/unit Rs.6.25/unit
SCL / month and upto 200 month
200 unit per month
unit per month
Consumption
Consumption above Rs.60/ kW of Rs. 75/ kW/
Rs.5.90/unit above 200 unit Rs.6.75/unit
200 unit per month SCL / month month
per month
HT-NDS (HT-2) HT-NDS (HT-2)
For contract For contract
demand over 50 demand over 50
KVA kVA
Rs.125/ kVA of Rs.150/ kVA of
All units Rs.5.90/unit Billing Demand All units Rs.6.75/unit Billing Demand
per month per month

91
 Table:63-Non-Domestic Category (LT-2 and HT-2) –Approved tariff for FY 2012-13

LT-NDS(LT-2)
NDS up to 5 kW of SCL-type1 (Consumption upto 100 units/month)

Energy Charges Fixed Charges

Consumption upto first 100 units per month Rs.5.60/unit Rs 175/ connection / month

LT-NDS(LT-2)
NDS up to 5 kW of SCL-type 2 Consumption above 100 units/month and upto 200 units/month)

Energy Charges Fixed Charges

Consumption upto first 100 units per month Rs.5.60/unit

Rs 175/ connection / month

Consumption above 100 units and upto 200 unit per
Rs.6.00/unit
month

LT-NDS(LT-2)
NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month)

Energy Charges Fixed Charges

Consumption upto first 100 units per month Rs.5.60/unit

Consumption above 100 units and upto 200 unit per Rs 210/ connection / month
Rs.6.00/unit
month
Consumption above 200 unit per month Rs.6.25/unit

NDS above 5 KW of SCL (LT-2)

Energy Charges Fixed Charges

Consumption upto first 100 units per month Rs.5.60/unit

Consumption above 100 units and upto 200 unit

Rs.6.00/unit Rs.70/ KW of SCL / month
per month

Consumption above 200 unit per month Rs.6.25/unit

HT-NDS (HT-2)

For contract demand over 50 kVA

All units Rs.6.25/unit Rs.140/ kVA of Billing Demand per month

92
 Proposal for Change in Categorizations
21.2.7. Discoms proposed inclusion of radio stations, Television stations and their
Transmitters including BTS, (including run by the Govt./Govt. undertaking) in
the non-domestic category.

Tariff for BTS towers of Telecom companies

21.2.8. Regarding BTS tower, various stakeholders on behalf of telecom companies
submitted that BTS towers are not the part of telephone exchange and should
not be included in NDS.
21.2.9. Discoms submitted that Commission vide tariff order dt. 8.9.2011 covered all
telephone service operators (BSNL or otherwise), telephone/ mobile
exchanges/ switches including attached offices under NDS category. Discoms
further submitted that after issuance of said tariff order, mobile operators
approached the GoR and requested that since BTS tower has not been
mentioned separately in the Tariff order dt. 8.9.2011 they should be continued
to be billed in Mixed load category. As such to clarify the issue, Discoms have
proposed to include BTS tower, (including run by the Govt./Govt. undertaking)
in the non-domestic category. Discoms argued that the telephone towers are
an integral part of telephone exchanges and tariff of telephone exchanges
whether it was in mixed load or in NDS category remain applicable on BTS
towers.
21.2.10. Regarding tariff for BTS tower, two petitions in the matter are also under
consideration of the Commission. As such, Commission will take a view in the
matter at the time of disposal of these petitions.
Tariff for Radio Stations, Television Stations and their Transmitters in the non-
domestic category.

21.2.11. Prasar Bharti submitted that Doordarshan and All India Radio Stations and their
transmitters should not be re-categorized from the existing mixed load
category to the non-domestic category since these are non-commercial
organizations serving the interests of common people by carrying information
about various welfare schemes and programmes of regional / national
importance. Moreover, these are government enterprises whose assets are
under the control of central government, therefore these should not be
categorized as non – domestic category consumers.

93
21.2.12. Chairman, Discoms submitted that these activities are commercial activities
and these consumers charge commercial tariff even for advertisement of
Govt. schemes. Discoms have contended that to bring the tariff of these
activities at par with tariff of other commercial activities, change in category
from Mixed Load to NDS has been proposed for these activities.
21.2.13. In the light of the reasons given by the petitioners, the Commission accepts
the proposal of Discoms.

Tariff for wedding houses

21.2.14. Discoms proposed that the tariff for wedding houses should be at par with the
non-domestic category as these are Commercial activities.
21.2.15. Discoms submitted that earlier the tariff for wedding houses was 1.4 times the
Non-Domestic tariff but they were not required to pay the minimum charges
and transformer & other necessary infrastructure were provided by Discoms at
its own cost. Since, the minimum charges have been abolished, wedding
houses should be included in Non-Domestic category.
Commission’s view:
21.2.16. The Commission observes that the wedding houses are already included in
NDS category with an exception that they have to pay 1.4 times of NDS tariff
and in lieu of this permanent connection is to be released by installing
transformer at Discoms’ cost. However, now the Discoms have proposed to
treat this category at par with normal NDS consumers. To keep uniformity, the
Commission accepts the proposal of the Discoms. Now they will be in NDS
category both for the purpose of tariff and release of connection. While
releasing connection the Discoms will also keep in view, the safety measures
required to be taken for the places of public gathering.

21.3. Public Street Lighting Service (LT-3)

21.3.1. Discoms have proposed to raise tariff for public street lighting both for areas
with less than 1 lac population and with more than 1 lac population.
21.3.2. Discoms have proposed an increase in fixed charges from Rs.50/lamp
point/month to Rs. 65/lamp point/month for areas with population less than 1
lakh and from Rs60/lamp point/month to Rs80/lamp point/month for areas
with population greater than 1 lakh.

94
21.3.3. They have also proposed an increase in energy charges from Rs 4.10 per unit
to Rs 4.90 per unit for areas with population less than 1 lakh and from Rs 4.50
per unit to Rs5.40 per unit for areas with population greater than 1 lakh.
21.3.4. The tariff proposed and approved is given in the following tables.

Table:64- Public Street lighting(LT-3) Category -Existing and Proposed tariff for FY 2012-13

Particulars Existing Tariff Proposed Tariff

Public Street
Energy Charges Fixed Charges Energy Charges Fixed Charges
Lighting

Rs. 50/ Lamp point/ Rs. 65/ Lamp point/

month subject to a month subject to a
Population <1
Rs. 4.10/ unit maximum of Rs. 500 Rs. 4.90/ unit maximum of Rs. 650
Lakh
/service /service
connection/month connection/month
Rs. 60/ Lamp point/ Rs. 80/ Lamp point/
month subject to a month subject to a
Population =
Rs. 4.50/ unit maximum of Rs. 1200 Rs. 5.40/ unit maximum of Rs. 1600
>1 Lakh
/service /service
connection/month connection/month

Table: 65- Public Street lighting (LT-3) Category-Approved tariff for FY 2012-13

Particulars Approved by Commission

Public Street Lighting Energy Charges Fixed Charges

Rs. 65/ Lamp point/ month subject to a
Population <1 Lakh Rs. 4.90/ unit
maximum of Rs. 650 /service connection/month
Rs. 80/ Lamp point/ month subject to a
Population = >1 Lakh Rs. 5.30/ unit maximum of Rs. 1600 /service
connection/month

21.4. Agriculture Supply (LT-4)

21.4.1. Discoms in their petition have stated that the tariff in the state has not been
revised in due proportion with the increase in average cost of supply.
Accordingly they proposed to increase the tariff of both the metered and un-
metered agricultural consumers which has been summarized in the table after
the following sub-paras.

21.4.2. Further, the Discoms have proposed to levy fixed charges based on the
sanctioned or connected load (whichever is higher).

95
21.4.3. For metered consumers the Discoms have proposed to increase the fixed
charges from Rs.60/ connection/ month to Rs. 15/ hp/ month (maximum Rs
250/ month/consumer) for general consumers getting supply in block hours
and from Rs.60/ connection/ month to Rs.35/ hp/ month (maximum Rs 500/
month/consumer) for consumers getting supply more than block hours.
Discoms have proposed to increase energy charges from Rs.1.36/ unit to
Rs.2.00/unit and from Rs.2.60/unit to. Rs.3.85/unit for these two sub-categories,
respectively.

21.4.4. For flat rate consumers the Discoms have proposed to increase the fixed
charges from Rs.25/ connection/ month to Rs. 15/ hp/ month (maximum Rs
250/ month/consumer) for general consumers getting supply in block hours
and from Rs.25/ connection/ month to Rs.30/ hp/ month (maximum Rs 500/
month/consumer) for consumers getting supply more than block. Discoms
have also proposed to increase energy charges from Rs.175/hp/month to Rs.
260/hp/month and from Rs. 290/hp/month to 430/hp/month for these two sub-
categories respectively.

21.4.5. As per submission of Discoms the Government of Rajasthan would be

providing subsidy support for both metered and un-metered agriculture
consumers. Discoms have submitted that the subsidy would be increased from
the existing Rs.0.46 per unit to Rs.1.10 per unit for general metered consumers
getting supply in block hours whereas for the consumers getting supply more
than block hours , the subsidy would increase from Rs. 0.50/unit to Rs.
1.75/Unit. In case of general Flat Rate consumers getting supply in block
hours, the Govt. subsidy would be increased from existing Rs.90 per H.P. to
Rs.175 per H.P whereas for other flat rate consumers getting supply more than
block hours, the subsidy is proposed to be increased from Rs.60 /hp/month to
Rs.200/hp/month.

21.4.6. The existing and the proposed tariff for agriculture supply are summarized
below.

96
 Table:66-Agriculture Category (LT-4)— Existing and Proposed tariff for FY 2012-13

Particulars Existing Tariff Particulars Proposed Tariff

Subsidy Subsidy
indicated Effectiv indicate
Effective
Agricultur to be e EC Fixed Agricultur d to be
EC EC EC after Fixed Charges
e Supply received after Charges e Supply receive
subsidy
from subsidy d from
Govt* Govt*

Metered (AG/MS/LT-4) Metered (AG/MS/LT-4)

(i)
General Rs.15/ HP/ month
(i)
(Not Rs.60/ Maximum Rs 250/
Rs. Rs. Rs. General Rs. Rs. Rs.
getting connecti month/consumer(Su
1.36/un 0.46/un 0.90/un (getting 2.00/un 1.10/un 0.90/un
round on/ bsidy above Rs
it it it supply in it it it
the month 45/Connection /
block)
clock Month )
supply)
Rs.60/
Rs. Rs. Rs.
(ii) Farm connecti Farm Proposed to be included in Domestic
4.20/un 0.80/un 3.40/un
House on/ House Category
it it it
month
(iii)All
others (ii)All
not others
covered not
under covered
items (i) under Rs.30/ HP/ month
& (ii) Rs.60/ items (i) Maximum Rs 500/
Rs. Rs. Rs. Rs. Rs. Rs.
above connecti above month/consumer(Su
2.60/un 0.50/un 2.10/un 3.85/un 1.75/un 2.10/un
and on/ and bsidy above Rs
it it it it it it
getting month getting 50/Connection /
round supply Month )
the more
clock than
supply & block
Poultry hours
Farm.
Flat/ unmetered (AG/FR/LT-4) Flat/ unmetered (AG/FR/LT-4)
Rs.25/
(i)Gener connecti
Rs.15/ HP/ month
al (Not on/ (i)
Maximum Rs 250/
getting Rs. 175/ Rs. 90/ 85 / month(Su General Rs. 260/ Rs. 175/
85 / HP/ month/consumer(Su
round HP/ HP/ HP/ bsidy of (getting HP/ HP/
Month bsidy above Rs
the Month Month Month Rs supply in Month Month
15/Connection /
clock 10/Conn block)
Month )
supply) ection /
Month )
Rs.25/
connecti (ii)All Rs.30/ HP/ month
(ii)Fodde Rs. 250/ Rs. 50/ Rs. 200/ on/ others Maximum Rs 500/
Rs 430/ Rs. 200/ Rs. 230/
r HP/ HP/ HP/ month(Su not month/consumer(Su
HP/ HP/ HP/
Scheme Month Month Month bsidy of covered bsidy above Rs
Month Month Month
Rs under 20/Connection /
5/connec items Month )

97
 Particulars Existing Tariff Particulars Proposed Tariff

Subsidy Subsidy
indicated Effectiv indicate
Effective
Agricultur to be e EC Fixed Agricultur d to be
EC EC EC after Fixed Charges
e Supply received after Charges e Supply receive
subsidy
from subsidy d from
Govt* Govt*

tion / (i)above
Month ) and
getting
more
(iii)All than
others block
not hour
covered Rs.25/ supply &
under connecti Poultry
items (i) on/ Farm.
& (ii) Rs 290/ Rs. 60/ Rs. 230/ month(Su
above HP/ HP/ HP/ bsidy of
and Month Month Month Rs
getting 5/Conne
round ction /
the Month )
clock
supply &
Poultry

Fixed charges on Connected load basis

21.4.7. The Discoms have proposed to levy fixed charges based on the sanctioned or
connected load (whichever is higher).The Commission finds that the Govt. is
providing subsidy beyond a certain level in fixed charges also. Though the
Commission has not accepted the proposal of Discoms regarding fixed
charges on the connected load basis in case of Domestic and on Domestic
category but the Commission finds that unlike the DS/NDS the agriculture load
is purely motive load which is easily identifiable and other motive loads for
industries are already being billed on connected load basis. As such, the
Commission accepts the proposal of Discoms in this regard.

Merger of subcategories

21.4.8. The Discoms have proposed to merge some agriculture sub-categories and
make classification based on block supply and more than block supply hours.
The Commission accepts the proposal of Discoms.

98
 Tariff for agriculture consumers

21.4.9. There were lot of suggestions from stakeholders against lower tariff for this
category and their contention was that the provisions of Electricity Act, Tariff
Policy and Tariff Regulations should be given due consideration as far as cross-
subsidy is concerned.

21.4.10. However, the tariff for agricultural category has to be seen in the context of
the relatively poorer quality of supply, restricted supply, that too during non-
peak hours. The energy consumption in agriculture is comparatively high due
to lower ground water level and adverse climatic conditions. The Tariff Policy
also recognizes the need of higher level of subsidy in the region where
adverse ground water table conditions lead to higher consumption of
electricity for irrigation.

21.4.11. As mentioned earlier, the tariff of this category has to progressively go up in a

manner as to bring down the cross subsidy as required under the National
Tariff Policy as well as in Regulations of the Commission. In view of this, a
significant increase in tariff of this sector is inescapable and licensees have
also proposed considerable increase for consumers of this category along
with corresponding increase in Government subsidy.

21.4.12. Last year the Commission has increased the tariff for this category beyond the
proposal of Discoms with a view to reduce the level of cross subsidization. The
Commission this year also would like to go beyond the proposal of Discoms
and increase the tariff further for this category, so as the realization from this
category moves towards average cost of supply.

21.4.13. Accordingly, the tariff determined by the Commission for this category is as
under:
Table:67-Agriculture Category(LT-4)-Approved Tariff for FY 2012-13
Agriculture
Energy Charges (EC)
Supply
Subsidy indicated to Fixed Charges
Metered Effective EC
EC be received from
(AG/MS/LT-4) Govt* after subsidy
Rs.15/ hp/ month
(i) General
Rs. Maximum Rs 250/
(getting supply in Rs. 1.10/unit Rs. 1.15/unit
2.25/unit month/consumer(Subsidy above
block hours)
Rs 45/Connection / Month )

99
 Agriculture
Energy Charges (EC) Fixed Charges
Supply
(ii)All others not
covered under Rs.30/ hp/ month
items (i) and Rs. Maximum Rs 500/
Rs. 1.75/unit Rs. 2.10/unit
getting supply 3.85/unit month/consumer(Subsidy above
more than block Rs 50/Connection / Month )
hours

Flat/ unmetered (AG/FR/LT-4)

Rs.15/ hp/ month

(i)General Rs. 285/
Rs. 175/ HP/ Maximum Rs 250/
(getting supply in HP/ 110 / HP/ Month
Month month/consumer(Subsidy above
block hours) Month
Rs 15/Connection / Month )

(ii)All others not

covered under
items (i) above Rs.30/ hp/ month
and getting Rs 430/ HP/ Rs. 200/ HP/ Maximum Rs 500/
more than block Rs. 230/ HP/ Month
Month Month month/consumer(Subsidy above
hour supply
Rs 20/Connection / Month )

21.4.14. As regards agriculture tariff, the petitioners have stated that ED revenue of
the State Govt. has been allowed to be retained in lieu of revenue deficit on
account of lower agriculture tariff. This is over and above the subsidy, being
given by the State Govt. directly to subsidize the agriculture tariff.

21.4.15. The subsidy amount of ED revenue is being shown separately while assessing
the overall revenue gap after tariff increase. However, while computing
category-wise cross subsidy, as given later in this order, the extent of cross
subsidy for agriculture sector is being also shown in the relevant column in
brackets by having a notional calculation of per unit additional cross subsidy
for agriculture consumers on account of ED revenue.

21.5. Small Industries (LT-5)

21.5.1. The Discoms have proposed to discontinue the categorization of consumers
based on sanctioned connected load. Instead they have proposed to
introduce consumption based demarcation and have accordingly sought to
increase the existing energy charges from Rs.4/unit to Rs.4.50/unit for
consumption upto 500 units and Rs.4.85/unit for consumption above 500 units.

100
 The fixed charges have been proposed to be uniformly increased for all
consumers from Rs.45/HP/month of sanctioned connected load to
Rs.60/HP/month of sanctioned connected load as under :
Table:68- Small Industries (LT-5)-Existing and Proposed tariff for FY 2012-13
Existing Tariff Proposed Tariff

Energy
Particulars Energy Charges Fixed Charges Particulars Fixed Charges
Charges

Small Industrial Service (LT-5) Small Industrial Service (LT-5)

Rs. 45/ HP/ Upto 500 units Rs. 60/ HP/
month of But not month of
Up to 5 kW Rs.4.00/ unit sanctioned exceeding Rs.4.50/ unit sanctioned
connected 18.65 kW connected
load (25HP) load
Above 500
Above 5 kW Rs. 45/ HP/ Rs. 60/ HP/
units
month of month of
But not But not
Rs.4.35/ unit sanctioned Rs.4.85/ unit sanctioned
exceeding exceeding
connected connected
18.65 kW 18.65 kW
load load
(25HP) (25HP)

21.5.2. The Commission has observed that fixed charges for Small industrial category
have been proposed at the same level as that of Medium industry , which
seems unreasonable . The Commission has readjusted the proposal of Discoms
regarding fixed charges. Accordingly, the Commission determines the tariff
for this category as under:
Table:69-Small Industries(LT-5)- Approved Tariff for FY 2012-13
Particulars Energy Charges Fixed Charges

Small Industrial Service (LT-5) (Load not exceeding 18.65 kW (25HP)

Rs. 50/ HP/ month of
Upto 500 units Rs.4.50/ unit
sanctioned connected load
Above 500 units Rs. 50/ HP/ month of
Rs.4.85/ unit
sanctioned connected load

21.6. Medium Industry (LT-6 and HT-3)

21.6.1. In case of medium industries, the petitioners have proposed increase in fixed
charges from Rs. 112/ KVA/ month to Rs. 140/ KVA/ month for HT-3 consumer
category. For Medium Industrial consumers at LT, Discoms have proposed a
hike in the fixed charges from Rs 50/HP /month to Rs 60/HP/month. Under
energy charges, Discoms have requested for an increase in both LT and HT

101
 consumer categories. Under both LT and HT category, they have proposed an
increase from Rs.4.75/ unit to Rs.5.25/ unit as given in the table below:

Table:70-Medium Industrial Service(LT-6 and HT-3)-Existing and proposed Tariff for FY 2012-13

Existing Tariff Proposed Tariff

Fixed
Particulars Energy Charges Particulars Energy Charges Fixed Charges
Charges

Medium Industrial Service (LT-6)

SCL above
SCL above 18.65 kW
18.65 kW (25HP) (25HP) but
Rs. 50/ HP/ Rs. 60/ HP/
but not not
month of month of
exceeding 112 exceeding
Rs.4.75/ unit sanctioned Rs.5.25/ unit sanctioned
kW (150HP) &/or 112 kW
connected connected
Maximum (150HP) &/or
load load
Demand of 50 Maximum
kVA Demand of
50 kVA
HT Categories
Medium Industrial Service (HT-3)
SCL above
SCL above 18.65 kW
18.65 kW (25HP) (25HP) but
Rs. 112/
but not not Rs. 140/ kVA
kVA of
exceeding 112 exceeding of Billing
Rs.4.75/ unit Billing Rs.5.25/ unit
kW (150HP) &/or 112 kW Demand per
Demand
Maximum (150HP) &/or month
per month
Demand of 125 Maximum
kVA Demand of
125 kVA

21.6.2. The Commission finds it appropriate to determine energy charges for both HT
and LT category at the same level as proposed by the petitioners .
21.6.3. The commission accepts the proposal of increase in fixed charges of LT
Medium Industrial category more so as there was no increase in fixed charges
of this category in last tariff revision. However, fixed charges for HT Medium
Industrial category have been realigned keeping in view the approved fixed
charges for Large Industrial category.

102
21.6.4. Accordingly, the tariff determined by the Commission for this category shall
be as under:
Table:71 -Medium Industrial Service(LT-6 and HT-3)-ApprovedTariff for FY 2012-13
Particulars Energy Charges Fixed Charges
Medium Industrial Service (LT-6) Rs. 60/ HP/ month of sanctioned
Rs.5.25/ unit
connected load
Medium Industrial Service (HT-3) Rs. 125/ KVAof Billing Demand per
Rs. 5.25/ unit
month

Demand Based Tariff for LT Medium Industrial consumers

21.6.5. At present only HT consumers are allowed to opt for demand based billing
whereas LT consumers are billed on the basis of sanctioned connected load.
There is a continuous request from Industries to allow LT consumers to be billed
on the basis of contract demand. As submitted by Discoms at present their
metering system supports introduction of demand based billing for LT MIP
consumers only. Accordingly the Commission directs that a MIP consumer
may opt for billing on the basis of demand and in that case fixed charges as
applicable for MIP-HT category shall apply and other provisions relating to
billing demand and excess demand surcharge etc. as applicable for HT-MIP
consumers shall also apply. However, if the demand exceeds 50 kVA the
consumer has to shift to HT voltage as per provisions of tariff and supply code
regulations.
21.6.6. The Commission also wishes to extend this facility in phased manner based on
examination of metering status and feasibility in respect of other consumer
categories.
21.7. Bulk Supply for Mixed Load (LT-7and HT-4)

21.7.1. Under Bulk Supply for Mixed Load, Discoms have requested increase in fixed
charges from Rs.112/KVA/month to Rs. 150/ KVA/ month for HT consumers
having load above 50 kVA. For LT category also petitioners have sought an
increase in fixed charges from Rs.50/HP/month of sanctioned connected load
to Rs.60/HP/month of sanctioned connected load. The energy charges have
been proposed to be increased from Rs.4.75/unit to Rs.5.25/ unit for LT
category and from Rs.4.75/unit to Rs.5.50/ unit for HT category as under:

103
 Table:72-Bulk Supply for Mixed Load Category(LT-7 ad HT-4)- Existing and Proposed tariff for FY 2012-13
Existing Tariff Bulk Supply Proposed Tariff
Bulk Supply for mixed
for mixed Energy
Load Energy Charges Fixed Charges Fixed Charges
Load Charges
Schedule ML/LT-7 Schedule ML/LT-7
Rs.60/ HP/
Rs.50/ HP/ month of month of
Up to 50 kVA Rs.4.75/ unit sanctioned Up to 50 kVA Rs.5.25/ unit sanctioned
connected load connected
load
Schedule ML/HT-4 Schedule ML/HT-4
Rs. 150/kVA of
Rs. 112/kVA of Billing Billing
Above 50 kVA Rs.4.75/ unit Above 50 kVA Rs.5.50/ unit
Demand per month Demand per
month

21.7.2. It has been observed that proposed energy charges for HT are higher than
Energy charges for LT and which is a deviation from existing tariff design and
proposed fixed charges for LT category are equivalent to proposed fixed
charges of Medium Industry whereas fixed charges proposed for HT
categories are equivalent to proposed fixed charges of Large Industrial
category. The Commission in its last tariff order dt. 8.9.2011 noted that
historically this category has the same tariff as that of Medium Industry and
determined tariff for this category at the same level as that of Medium
Industrial category . Following the same principles the Commission determines
the tariff for this category as under :
Table:73 -Bulk Supply for Mixed Load Category (LT-7and HT-4)-Approved tariff for FY 2012-13

Particulars Energy Charges Fixed Charges

Schedule ML/LT-7 Rs.60/ HP/ month of sanctioned connected
Rs.5.25/ unit
load
Schedule ML/HT-4 Rs.5.25/ unit Rs. 125/KVAof Billing Demand per month

Tariff for pumps in public parks

21.7.3. Discoms proposed that pumps for public parks be removed from Agriculture
category and be included in Public Street Lighting category. Fixed charges for
these pumps were proposed to be at Rs 60 /HP/month in addition to the fixed
charge prescribed on per lamp (points) basis

104
 Commission’s view:
21.7.4. In public parks, different electric load falls under different category like water
pump covered under Agriculture category, lamp post covered under PSL
category, residence of chowkidar/gardener under domestic category. In
view of above, public parks are typical example of mixed load. Therefore to
avoid different fixed charges for different activities and multiple tariffs,
Commission finds it appropriate to cover the public gardens belonging to the
Government/Local bodies under Mixed load category.
21.8. Large Industries (HT-5)
21.8.1. Discoms have proposed increase in fixed charges from Rs. 125/ KVA/ month to
Rs. 150/ KVA/ month. In energy charges, Discoms have requested increase
from Rs. 5.00/ unit to Rs.5.50/ unit.
21.8.2. The table below gives the existing and proposed tariff structure for Large
Industrial category.

Table:74 -Large Industrial Category(HT-5)- Existing and Proposed tariff for FY 2012-13
Existing Tariff Proposed Tariff

Energy
Particulars Energy Charges Fixed Charges Particulars Fixed Charges
Charges

Large Industrial Service (HT-5) Large Industrial Service (HT-5)

SCL above
SCL above 150 150 HP &/or
HP &/or having having Rs. 150/ kVA
Rs. 125/ kVA of
Contract/ Contract/ of Billing
Rs.5.00/ unit Billing Demand Rs.5.50/ unit
Maximum Maximum Demand per
per month
Demand Demand month
above 125 kVA above 125
kVA

21.8.3. Large no. of stakeholders requested not to increase tariff for this category. The
Commission while determining the tariff has kept in view the fact that any
category should not be burdened with excessive level of cross subsidization
and at the same time tariff has to be revised in the light of increase in average
cost of supply . Accordingly , the approved tariff for this category is as under:

105
 Table: 75-Large Industrial Category(HT-5)-Tariff as approved by the Commission for FY 2012-13

Energy Charges Fixed Charges

Rs.5.50/ unit Rs. 140/ KVA of Billing Demand per month

21.9. Other proposals

Change of category
21.9.1. Discoms proposed that in the event any consumer crosses the load threshold
of 50 kVA more than two times within a period of one year (continuous period
of twelve months, the consumer shall be converted and billed as per the
relevant HT category and if any MP (HT) consumer exceeds demand 125 kVA
more than two times within a period of one year (continuous period of twelve
months) then the consumer shall be converted into Large Industrial category.
21.9.2. It was also proposed that till the consumer installs its own transformer and shifts
in HT metering, transformation loss @ 3% shall be added in energy and
applicable transformer rent may be charged.
21.9.3. Commission’s view:
Commission observes that necessary provisions on the subject matter already
exist in “general conditions of application” of “Tariff for supply of Electricity”
and in Supply Code Regulations. However, if Discoms require necessary
changes/amendments in such provisions, they may file a petition for
amendments accordingly.
Higher Voltage Rebate
21.9.4. Discoms have proposed that the voltage rebate should not be extended to
the consumers who opt for supply at lower voltage than prescribed in the
character of service.
21.9.5. Discoms argued that at lower voltage distribution losses are high, as the losses
are directly proportional to square of current, therefore, at lower voltage level,
losses are high due to higher current and Discoms have to bear the
distribution loss at their own, so extending the voltage rebate to consumers
who opt for power at lower voltage will only increase the loss incurred by the
Discoms. As such, the consumers who opt for supply at lower voltage than
that prescribed in the character of service will not be eligible for voltage
rebate.

106
 Commission’s view:
21.9.6. The Commission has considered the views of stakeholders as well as that of
Discoms. Discoms in their earlier petition also moved a proposal of higher
voltage surcharge for consumers taking supply at a voltage lower than the
specified voltage corresponding to his contract demand which was not
accepted by the Commission.
21.9.7. The sentence ‘Contract Demand based tariff is basically tariff for supply at 11
kV’ appearing under preamble 1 of tariff schedule structure ‘part II – HT tariff’
when read with scheme of allowing rebate for taking supply at 33kV, 132kV
and 220 kV means that basic tariff is for the supply at 11 kV and separate
rebate is allowed for each higher voltage level . Once tariff considers voltage
of supply rebate, a consumer taking supply at lower voltage than the
prescribed voltage will not get high voltage rebate of prescribed voltage
level but will get applicable voltage rebate of only the lower voltage level at
which he is actually getting the supply. As such the Commission does not
accept the proposal of the Discoms in this regard.
22. Revenue due to tariff revision
Discoms are expected to generate additional revenue as given in the table
below for a 12 month period due to revision of tariff allowed by the
Commission by this order. This does not account for implication of any
incentive/surcharge or rebates, whose implication may be same as existing.
Change of categorisation has also not been considered as its impact on
revenue will be small. Revenue has been calculated by the Commission at the
tariff determined by it. If the State Govt. Provides subsidy for any category of
consumers in advance in the manner as specified in RERC(Terms & Conditions
of Tariff) Regulations, 2009, the Discoms may apply the subsidised rate to that
category.
Table: 76- : Jaipur Discom- Revenue at Existing & Revised Tariff as Approved by the
Commission for FY 2012-13 (Rs. crore)
Revenue at Revenue at Increase
Consumer Categories Existing Tariff Revised Tariff Allowed
Domestic 1598 1855 257
Non-Domestic 879 951 72
Public Street Light 56 67 10
Agriculture (Metered) 604 949 345
Agriculture (Flat) 91 147 56
Small Industry 144 161 17
Medium Industry 375 417 43

107
 Large Industry 2285 2516 231
Public Water Works (S) 101 113 12
Public Water Works (M) 13 15 1
Public Water Works (L) 81 89 8
Mixed Load 239 261 22
Electric Traction 209 230 21
Total 6675 7770 1095

Table: 77- : Ajmer Discom- Revenue at Existing & Revised Tariff as approved by the Commission
for FY 2012-13 (Rs. crore)
Revenue at Revenue at Increase
Consumer Categories Existing Tariff Revised Tariff Allowed
Domestic 1097 1260 163
Non-Domestic 380 414 34
Public Street Light 25 29 5
Agriculture (Metered) 407 634 227
Agriculture (Flat) 177 286 109
Small Industry 136 151 16
Medium Industry 360 401 41
Large Industry 1531 1688 157
Public Water Works (S) 97 108 12
Public Water Works (M) 18 20 2
Public Water Works (L) 89 98 9
Mixed Load 165 183 19
Electric Traction 0 0 0
Total 4481 5274 794

Table: 78-: Jodhpur Discom- Revenue at Existing & Revised Tariff as approved by the
Commission for FY 2012-13 (Rs. crore)
Revenue at Revenue at Increase
Consumer Categories Existing Tariff Revised Tariff Allowed
Domestic 1004 1159 155
Non-Domestic 379 412 33
Public Street Light 63 75 12
Agriculture (Metered) 713 1149 436
Agriculture (Flat) 197 320 123
Small Industry 114 127 13
Medium Industry 282 314 32
Large Industry 627 691 64
Public Water Works (S) 101 114 12
Public Water Works (M) 54 59 6
Public Water Works (L) 201 221 20

108
 Mixed Load 288 315 27
Electric Traction 0 0 0
Total 4023 4955 932

23. Cross Subsidy

23.1. As per regulation 126 of RERC (Terms and Conditions of tariff) Regulations,
2009, the average cost of supply and realization from a category of
consumers, shall form the basis of estimating the extent of cross subsidy and
determination of tariff, for that consumer category.
23.2. Regulation 126 of RERC (Terms & Condition of Tariff) Regulations, read with
National Tariff Policy makes it evident that average cost of supply has to be
the benchmark in assessing cross-subsidy from any consumer category. The
National Tariff Policy at Para 8.3.2 states that SERC shall notify a road map with
a target that tariff is within +/- 20% of average cost of supply. The Commission
has also specified in its Tariff Regulations that the Commission shall endeavour
to determine the tariff in such a manner that it progressively reflects the
average cost of supply and the extent of cross subsidy to any consumer
category is within maximum range of +/- 20% of average cost of supply by the
year 2010-11.

23.3. The last tariff revision in the year 2011 was virtually the first revision after
National Tariff Policy and considering the historical status of huge variation in
category wise tariff, bringing the cross subsidy within the +/- 20% range in just
one revision was not feasible. The phasing out of subsidy has to be done
through successive tariff revisions and the Commission through this order has
tried to realign the levels of cross subsidy w.r.t average cost of supply as given
in tables given below.
23.4. Average cost of supply for the three Discoms as per ARR and sales considered
by the Commission , earlier in this order is as under:
Table: 79 - Average Cost of Supply

JVVNL AVVNL JdVVNL Rajasthan

9195 6751 7396 23342

Net ARR(Rs. In crore)
16134 11212 12396 39742
Sales (MU)
5.70 6.02 5.97 5.87
COS (Rs./Unit)

109
23.5. The cross subsidy across consumer categories at the revised tariff rate for the
three Discoms for FY 2012-13 based on average cost of supply is provided in
the table below:
Table:80 - Cross subsidy at revised tariff

Cross subsidy JVVNL AVVNL JdVVNL Rajasthan

Domestic -8.31% -13.30% -13.13% -11.26%
Non-Domestic 24.91% 21.76% 20.35% 22.27%
Public Street Light -7.91% -14.52% -15.03% -12.29%
Agriculture (Metered) -58.04% -60.68% -61.09% -59.89%
Agriculture (Flat) -58.04% -60.21% -60.16% -59.36%
Small Industry 1.60% -3.48% -5.31% -1.99%
Medium Industry 5.91% -0.92% 0.53% 2.16%
Large Industry 1.79% 5.62% 1.90% 2.54%
Public Water Works (S) -13.53% -15.65% -16.16% -14.85%
Public Water Works (M) 1.79% -5.32% -5.07% -3.07%
Public Water Works (L) -0.34% -0.75% -2.16% -0.66%
Mixed Load 6.54% 0.14% -3.83% 0.78%
Electric Traction 3.10% - - -

23.6. The Discoms have stated that the Government has approved the retention of
ED with the Discoms to bridge the gap between average cost of supply and
the tariff for Agriculture consumers. The subsidy amount of ED revenue is
being shown separately while assessing the overall revenue gap after tariff
increase. However, after accounting for additional subsidy on account of ED
revenue, the cross subsidy in Agriculture category works out to be as under:
Table:81 - Cross subsidy for agriculture consumers

Cross subsidy JVVNL AVVNL JdVVNL Rajasthan

Agriculture (Metered) -44.36% -47.73% -48.03% -46.61%
Agriculture (Flat) -44.36% -47.27% -47.10% -46.09%

24. Revenue Surplus/ Deficit at revised Tariff

24.1. Although the additional revenue on account of tariff revision works out to Rs.
2821 Crores for all Discoms on an yearly basis, but since tariff revision
approved by the Commission would be effective for a lesser period, the
additional revenue on account of tariff revision would not be available for

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 the full year and works out to be approximately Rs. 705 Crore for JVVNL, Rs.
511 Crore for AVVNL, Rs.600 Crore for JdVVNL and Rs. 1816 Crore for all
Discoms. The position of deficit at revised tariff for the full year and remaining
period of FY 12-13 works out to be as under:

Table: 82-: Revenue Deficit as approved by the Commission for FY 2012-13 -JVVNL (Rs. Crore)

At revised At revised Tariff

At existing
Particular Tariff for remaining part
Tariff
for full year of the year
Aggregate Revenue Requirement 9195 9195 9195
Revenue generation (including other income) 6675 7770 7380
Revenue Deficit 2520 1425 1815
ED retention 494 494 494
Transitional Cash Support from GoR 156 156 156
Net Revenue Deficit 1870 775 1165

Table: 83- : Revenue Deficit as approved by the Commission for FY 2012-13 (Rs. Crore)-AVVNL

At revised At revised Tariff

At existing
Particular Tariff for remaining part
Tariff
for full year of the year
Aggregate Revenue Requirement 6751 6751 6751
Revenue generation (including other income) 4481 5274 4992
Revenue Deficit 2270 1477 1760
ED retention 356 356 356
Transitional Cash Support from GoR 116 116 116
Net Revenue Deficit 1798 1005 1288

Table: 84- : Revenue Deficit as approved by the Commission for FY 2012-13-JdVVNL (Rs. Crore)

At revised At revised Tariff

Particular At existing Tariff Tariff for remaining part
for full year of the year
Aggregate Revenue Requirement 7396 7396 7396
Revenue generation (including other income) 4023 4955 4623
Revenue Deficit 3374 2441 2773
ED retention 300 300 300
Transitional Cash Support from GoR 128 128 128
Net Revenue Deficit 2946 2013 2345

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24.2. Discoms have not proposed to meet the entire deficit for FY 2012-13 in the
proposed tariff as this would result in a tariff shock for the consumers in the
State and proposed that unfunded gap will be met out of Government
support or short term borrowings.
24.3. Discoms have intimated about the following support of the State
Government to strengthen the financial position of Discoms:
(i) The existing annual cash support of Rs.400 crores would increase at a rate
of 5% per annum w.e.f. FY 2013-14 upto FY 2021-22.
(ii) The existing subsidy of Rs.120 crores would be increased to Rs.700 crores
for FY 2012-13 and thereafter an increase of 5% per annum would be
allowed upto FY 2021-22 to meet the past revenue deficit.
(iii) For FY 2012-13 interest free loan of Rs.450 crores would be allowed which
will be continued with an increase of 5% per annum till FY 2021-22.
(iv)With effect from FY 2012-13, the equity support would be increased from
20% to 30%.
(v) Interest free loan of Rs.1070 crores given by the State Government in the
past would be converted into equity.
(vi)With a view to reduce the burden of interest on short-term loans efforts
would be made to get these loans restructured. In addition possibility of
issuing bonds to reduce the interest burden is also under consideration.
24.4. Commission has taken note of considerably enhanced support having been
committed by the Government to mitigate financial hardship of Discoms and
financial restructuring plan is also under active consideration of the State
Govt. as intimated by Discoms. The steps taken by the State Government
would no doubt help in mitigating the financial hardship of the Discoms and
result in liquidating the past liabilities to a considerable extent.
24.5. Revenue gap, even after this tariff order, would exist, though the same would
have come down quite significantly after the two successive tariff increases,
including the current one. The revenue gap as approved as per this order
could be met through borrowings.
24.6. In the last year’s tariff order, the Commission had shown concern about the
issues of inventory management, recovery of arrears, excessive short term
power purchases and Commission directed Discoms to take effective
measures. The Commission is pleased to note that during 2011-12 prudent

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 control was exercised over short term power purchases. This needs to be
continued. Further, vigorous efforts would need to be made for
improvement in other areas like inventory management, recovery of arrears
and addressing manpower related issues to improve quality of service.
Overall T&D losses have come down over the years, but this would need to
be sustained to reach the targeted loss level.
24.7. This tariff shall remain in force till it is amended by the Commission by a
separate order. All existing provisions which are not modified by this order,
shall continue to be in force. Discoms shall publish salient features of tariff
within one week in two daily newspapers in Hindi and one in English, having
wide circulation in their respective areas of supply. The tariff shall come into
force only after such publication. Discoms shall revise the existing tariff
structure in accordance with this order and publish in Hindi and English a
booklet containing all details of tariff and its applicability for the benefit of
consumers. It should be made available for sale to general public on a
nominal price.

24.8. Copy of this order may be sent to petitioners, stakeholders, CEA and Govt. of
Rajasthan. It shall be placed on the website of the Commission.

(S.Dhawan) (S.K.Mittal) (D.C. Samant)

Member Member Chairman

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