NPDCL EPDCL SPDCL CPDCL

33kV 6.4% 8.0% 6.0% 6.4%

11kV 13.6% 13.6% 12.6% 13.6%

LT 24.3% 22.1% 21.6% 22.7%

400. The Commission accepts the above data for the purposes of determining the network losses for the year 2004-05. In doing so, the Commission has also been guided by the fact that the same aggregate losses have been used for computing the power purchase cost.

Recovery of charges

401. Accordingly, the principles on which the wheeling charges shall be levied and collected from persons using the distribution system for wheeling of electricity pending finalization of the Regulations on open access shall be as under till further orders of the Commission:

402. The network cost shall be determined equally for all purposes, namely, for distribution and retail supply of electricity by the distribution licensee in the area of supply as well as for wheeling of electricity for others including captive power plants.

403. The network cost of a DISCSOM shall be based on its revenue requirement net of the power purchase cost, non-tariff income and special appropriations. A person other than the distribution licensee in the area of supply shall be liable to pay the network cost for the quantum of energy he proposes to wheel through the distribution system during the year 2004-05

404. The losses in the distribution system shall be calculated based on voltage level to be compensated in kind i.e. the distribution licensee shall deliver the quantum of energy given to it for wheeling reduced by the distribution loss level at the voltage at which the energy is delivered.

405. If the wheeling of electricity is through the transmission system of APTRANSCO, in addition to the distribution licensee of the area of supply, the transmission charges including adjustment for transmission losses shall be levied and recovered in addition.

406. If the wheeling of electricity is through the distribution system of more than one distribution licensee, the wheeling charges shall be payable to and adjustment of losses shall be done only for the distribution licensee of the area where the electricity is delivered and consumed and not for any other distribution licensee.

407. In the case of consumers other than captive consumers seeking transmission of energy, there shall be an additional liability to pay cross subsidization surcharge which the Commission determines under sub-section (2) of section 42 of the Electricity Act, 2003. Such surcharge shall be to the account of the distribution licensee of the area of supply where the electricity transmitted is consumed.

408. As and when the Commission permits the supply to a consumer or class of consumers from a person other than the distribution licensee of that area, such consumers are liable to pay an additional surcharge which the Commission determines under subsection (4) of section 42 of the Electricity Act 2003. Such

additional surcharge shall be to the account of the distribution licensee of the area of supply where the electricity transmitted is consumed.

Distribution Losses:

409. The Licensees, in their filings, have submitted that the overall losses in Andhra Pradesh are projected to come down to 23.61% in FY2004-05 (from the 32.3% projected for the year FY 2001-02, 28.4% projected in FY 2002-03 and 24.84% in FY 2003-04), comprising transmission losses of 6.25% and distribution losses of 18.52% on gross power purchases made by the Distribution Companies for the ensuing year. The difference between the purchases made by a Distribution Company and the sales made to various categories of consumers represents the distribution losses.

410. The Commission directed the licensees to estimate the distribution losses through third party studies. This study has to be expedited as it is necessary to assess the initial level of the distribution losses for use in the Long Term Tariff Principles (LTTP) filing. As the distribution losses study was not filed before the Commission for the ensuing year, the Commission is not able to predict the distribution losses as they continue to be guesstimates till agriculture consumption is fully metered.

411. The Commission is not inclined to prescribe a specific level of distribution losses for the ensuing year and adopts the distribution losses projected by the Licensees, till the study is completed.

Licensees are directed to complete the distribution losses study initiated by them within two months of this Order. At the same time, the Commission directs the licensees to submit a consultation paper on the “Achievable levels of distribution losses in the future years” within two months of this order.

Transmission Losses:

412. APTRANSCO has submitted estimated transmission losses in 2003-04 as 6.5% compared to 7% losses fixed in the FY 04 Tariff Order. The Commission in Tariff Order, FY 04, had directed the Licensee to compute the transmission losses and post

the details on their website every month. APTRANSCO has complied with the Directive and filed the information on transmission losses besides hosting it on their website. APTRANSCO has projected transmission losses of 6.25% for 2004-05.

413. Transmission losses (losses in energy from interface points of the contracted generating station and the distribution companies) have two components. One component is measured in APTRANSCO network and the other in the Power Grid Corporation of India Limited (PGCIL) network (external to APTRANSCO). External transmission losses as a percentage of total power purchase vary in the range of 0.45% to 0.55% in different months. The variation is according to the amount of energy drawn from the Central generating stations and actual transmission losses in the grid. In the APTRANSCO grid, losses are varying in the range of 5.1% to 6.6%. In recent months, these have been hovering around 6.25%.

414. In the Tariff Order for FY 2003-04, the Commission had directed the Licensee to constitute an in-house committee to study the transmission losses and draw up an Action Plan for implementation. Accordingly, the Transmission Loss Steering Committee (TLSC) was set up and it has been giving its recommendations to APTRANSCO from FY 2003-04.

415. The Licensee has submitted the status on the implementation of recommendations of TLSC as follows:

• In all 220 KV and 400 KV feeders, the non-working meters are replaced with electronic meters and thereby accurate measurement of energy flow is being done

• Voltage-wise transmission losses are calculated and it is observed that the losses are within the limits

• For 132 KV feeders, replacement of meters is being taken up and is expected to be completed shortly.

• New EHT substations and EHT lines are added to the transmission system. • Efforts are afoot to bring down transmission losses to 6.5%

during 2004-05.