Section 4-Tariff proposals and approved tariff

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91

Section 4-Tariff proposals and approved tariff

18. 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. 910 crore, Rs. 1168 crore and Rs. 1903 crores would remain for JVVNL, AVVNL & JdVVNL respectively at existing tariff. This amounts to a deficit of Rs. 3981 crores for all Discoms put together.

18.1. Discoms have proposed revision of tariff which would lead to an additional revenue of Rs. 2702 crore for Discoms during 2013-14, as follows:

Table:60-Expected additional revenue as proposed by Discoms for FY 2013-14 (Rs. Crore) Particulars Expected additional

revenue JVVNL 893 AVVNL 692 JdVVNL 1117 Total ₂₇₀₂

18.2. A large gap still remains as difference in average Cost of Supply and average realization is quite high. Therefore, a revision of tariff to cover the revenue deficit seems not only justified but is inescapable.

19. Determination of tariff

19.1. While finalizing the tariff for different consumer categories, the Commission has given due consideration to the proposals of licensees, comments of stakeholders, decisions 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.

19.2. This tariff revision is the third consecutive annual tariff revision after the National Tariff policy came into force in 2006. 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 Government. 19.3. Commission has also kept in view the fact that the tariff increase allowed last

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92 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.

19.4. 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.

19.5. Discoms have not proposed any change in tariff for Public Street Lighting, Small Industries, Medium Industries, Large Industries and Bulk Supply for Mixed Load. No changes have been proposed in Domestic and Non-Domestic category consumers having consumption upto 500 units per month. Considering that the tariff increase in past two years when seen together have resulted in an average increase of around 40% over tariff of F.Y 2010-11, the Commission accepts the said proposal of the licensees.

19.6. Licensees have proposed considerable increase in tariff of Agriculture category in both metered and Flat Rate category. It may be mentioned that despite the tariff increase in this category in past two years, the impact of cross subsidy continues to be very high for agriculture sector. The National Tariff Policy stipulates for the cross subsidy to come within the range of +/- 20% of average CoS. The Commission therefore considers the proposed tariff increase in agriculture category worth consideration.

19.7. Considering that the Discoms have proposed changes in tariff in respect of only a few categories, the discussion in the following paras is limited to only those categories where changes have been proposed. For other categories, where no change is envisaged by the licensees, the Commission has accepted that existing tariff for such categories shall become approved tariff for F.Y 13-14.

20. Category wise Tariff

20.1. Domestic Service (LT-1 and HT-1)

20.1.1. No increase in energy and fixed charges have been proposed for BPL, small domestic and general domestic consumers having consumption upto 500 units per month.

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93 20.1.2. Introduction of new slab under general domestic category has been

proposed by Discoms for consumers having consumption above 500 units per month, the fixed charges for this slab have been proposed at Rs. 225/connection/month. Energy charges for consumption upto 500 units per month shall remain same as approved in last year order. However for consumption above 500 units per month the energy charges have been proposed to be revised from existing Rs.5.15/unit to Rs. 6.00/unit.

20.1.3. No change has been proposed in tariff schedule DS/HT-1.

20.1.4. A large no. of stakeholders in their written as well as oral submissions opposed the proposed tariff hike stating that last two tariff increase was quite steep and third tariff revision in a span of less than two year will put undue burden. The Commission while determining the tariff has suitably considered the views of the stakeholders.

20.1.5. Discoms have proposed increase in number of slabs with increase in tariff for the slab of higher consumption as a dis-incentive for high energy consumption. Considering the above, the Commission agrees for introduction of new slab for consumers having consumption more than 500 units per month.

20.1.6. However, the Commission has noted that for consumption above 500 units per month, the Discoms have proposed an increase of 85 paisa/unit, which is an increase of approximately 17% over existing tariff of Rs. 5.15/unit. Looking to the fact that no revision has been proposed for other slabs of domestic category, 17% increase in single slab appears to be on higher side. Further, in the present telescopic tariff the slabs are closely knit and the Commission feels that there should not be a major tariff difference between two slabs. Accordingly, for FY 2013-14, the Commission has considered the energy charges of Rs. 5.45/unit for consumer having consumption above 500 units per month.

20.1.7. For consumers having consumption above 500 units per month, the fixed charges have been proposed to be increased from existing Rs. 210/connection/month to Rs. 225/connection/month. The Commission accepts the same.

20.1.8. The Existing, proposed tariff and that approved by the Commission is given in

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94 Table: 61-Domestic Category Existing and Proposed tariff for FY 2013-14

Particulars EXISTING TARIFF Particulars PROPOSED TARIFF

Category Energy Charges Fixed Charges Category Energy Charges Fixed Charges

Domestic EC Subsidy indicate d to be received from GoR Effectiv e EC after subsidy Domestic EC Subsidy indicate d to be received from GoR Effectiv e EC after subsidy LT-Domestic ( LT-1) LT-Domestic ( LT-1) B P L* B P L* Consumption upto first 50 units per month Rs. 2.75 / unit Rs 1.90/ unit Rs 0.85/ unit Rs 80/ connection/mont h (effective FC Rs 50 /connection /month after subsidy of Rs. 30/connection/ month) Consumption upto first 50 units per month Rs. 2.75 / unit Rs 1.90/ unit Rs 0.85/ unit Rs 80/ connection/mont h (effective FC Rs 50 /connection /month after subsidy of Rs. 30/connection/ month)

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

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

General Domestic-1 (Consumption above 50 units/month) General Domestic-1 (Consumption above 50 units/month) (i) For consumption upto first 50 units per month Rs 3.00 / unit Rs 160/ connection / month (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 per month Rs 4.65 / unit Rs 160/ connection / month (ii) For consumption above 50 units and upto 150 units per month Rs 4.65 / unit Rs 160/ connection / month

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

General Domestic-2 ( Consumption above 150 units and up to 300units/month ) (i)For consumption upto first 50 units per month Rs 3.00 / unit Rs 175/ connection/ month (i)For consumption upto first 50 units per month Rs 3.00 / unit Rs 175/ connection/ month (ii)For consumption above 50 units Rs 4.65 / (ii)For consumption above 50 units Rs 4.65 /

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

General Domestic-3 (Consumption above 300 units and up to 500 units/month )

General Domestic-3 (Consumption above 300 units and up to 500 units/month ) (i)For consumption upto first 50 units per month Rs 3.00 / unit Rs 210/ connection / month (i)For consumption upto first 50 units per month Rs 3.00 / unit Rs 210/ connection / month (ii)For consumption above 50 units and upto 150 units per month Rs 4.65 / unit (ii)For consumption above 50 units and upto 150 units per month Rs 4.65 / unit (iii)For consumption above 150 units and upto 300 units per month Rs 4.85 / unit (iii)For consumption above 150 units and upto 300 units per month Rs 4.85 / unit (iv)For consumption above 300 units and upto 500 units per month Rs 5.15 / unit (iv)For consumption above 300 units and upto 500 units per month Rs 5.15 / unit

General Domestic-4 (Consumption above 500 units/month ) General Domestic-4 (Consumption above 500 units/month ) – Proposed (i)For consumption upto first 50 units per month Rs 3.00 / unit _{Rs 210/} connection / month (i)For consumption upto first 50 units per month Rs 3.00 / unit _{Rs 225/} connection / month (ii)For consumption above 50 units and upto 150 units per month Rs 4.65 / unit (ii)For consumption above 50 units and upto 150 units per month Rs 4.65 / unit

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96 (iii)For consumption above 150 units and upto 300 units per month Rs 4.85 / unit (iii)For consumption above 150 units and upto 300 units per month Rs 4.85 / unit (iv)For consumption above 300 units per month Rs 5.15 / unit (iv)For consumption above 300 units and upto 500 units per month Rs 5.15 / unit (v)For consumption above 500 units per month Rs 6.00 / unit HT – Domestic (HT-1) HT – Domestic (HT-1) For contract demand over 50 KVA Rs 4.95 / unit Rs. 140 per kVA of Billing Demand per month For contract demand over 50 KVA Rs 4.95 / unit Rs. 140 per kVA of Billing Demand per month

*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: 62-Domestic Category (LT-1 and HT-1) -Approved tariff for FY 2013-14

*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 does not exceed 50 units in any month. Domestic Category Domestic EC Subsidy indicated to be received from GoR Effective EC

after subsidy Fixed Charges LT-Domestic ( LT-1)

B P L* Consumption upto

first 50 units per month

Rs. 2.75/

unit Rs 1.90/ unit Rs 0.85/ unit

Rs 80/ connection/ month (effective FC Rs 50 /connection /month after subsidy of Rs.

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

Consumption up to 50 units/month

Rs 3.00/

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97 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 per month Rs 4.65/ unit

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

Energy

Charges Fixed Charges

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

Rs 175/ connection / month (ii)For consumption above 50 units and upto 150 units per month Rs 4.65/ unit

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

Note: As discussed in section 1 of this order, moksh dhams, cemeteries and grave yards shall be covered Domestic category.

General Domestic-3 (Consumption above 300 and upto 500 units/month)

Energy

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

(iv)For consumption above 300 units and upto 500 units per month Rs 5.15/ unit

General Domestic-4 (Consumption above 500 units/month)

Energy

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

(iv)For consumption above 300 units and upto 500 units per month Rs 5.15/ unit

(v)For consumption above 500 units per month Rs 5.45/ unit

HT – Domestic (HT-1)

Energy Charges Fixed Charges

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98 20.1.9. The Discoms in their petitions have proposed to delete the words “also upto 5

KW” as appearing in the present applicability of domestic HT schedule (DS/HT-1) reproduced as under:

“Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Also upto 5 kW pumping load for water supply and load of maximum five shops shall be permitted under this tariff schedule.”

20.1.10. Discoms stated that current provision restricts the consumers to use the pumping load not more than 5 KW whereas in the current scenario, where large group housing colonies are applying connection under this category, the actual requirement for pumping load may be higher than 5 KW.

20.1.11. The Commission has accepted the above proposal to mitigate the difficulty in respect of load for water pumping in residential colonies. Accordingly, after deletion of the above words, the applicability shall read as follows:

“Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Pumping load for water supply and load of maximum five shops shall also be permitted under this tariff schedule.”

Re-Categorization of moksh dhams, cemeteries and grave yards

20.1.12. As discussed in section 2 of this order the moksh dhams, cemeteries and grave yards are re-categorized from Non Domestic category to Domestic category. Accordingly, the Commission directs the Discoms to make necessary changes in booklet “Tariff for Supply of Electricity”

20.2. Non-Domestic Service (LT-2 & HT-2) :

20.2.1. The Discoms in respect of consumers upto & above 5 kW of sanctioned connected load and having consumption upto 500 units per month have not proposed any increase in energy and fixed charges respectively.

20.2.2. Introduction of new slab has been proposed by Discoms for consumers upto and above 5 kW of sanctioned connected load & having consumption above 500 units per month.

20.2.3. The fixed charges for consumers upto 5 KW of sanctioned connected load and having consumption above 500 units per month have been proposed at

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99 Rs. 250/connection/month. The fixed charges for consumers above 5 KW of sanctioned connected load and having consumption above 500 units per month have been proposed at Rs.80/ KW of SCL / month.

20.2.4. Energy charges for consumption upto 500 units per month are proposed to remain same as approved in last year’s tariff order. However for consumption above 500 units per month the energy charges have been proposed to be revised from existing Rs.6.25/unit to Rs. 7.00/unit.

20.2.5. No change has been proposed in tariff schedule NDS/HT-2.

20.2.6. Many stakeholders stated that the proposed tariff for NDS is 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 kept in view the average cost of supply and realization from this category.

20.2.7. Discoms have proposed to increase the number of slabs with increase in tariff for the slab of higher consumption as a dis-incentive for high energy consumption. This would promote energy conservation. Considering the said position, the Commission agrees for introduction of a new slab for consumers having consumption of more than 500 units per month.

20.2.8. However, the Commission has noted that for consumers having consumption above 500 units per month, the Discoms have proposed an increase of 75 paisa/unit, which is an increase of approximately 12% over existing tariff of Rs. 6.25/unit. The tariff of this category is already near the range of +-20% of average cost of supply. Accordingly, for FY 2013-14, the Commission has considered a lower energy charges of Rs. 6.60/unit for consumer having consumption above 500 units per month as appropriate and the same stands approved. The fixed charges for this slab has been approved as proposed i.e. Rs 250/connection/month for NDS upto 5 KW and Rs 80/KW of SCL / month for NDS above 5 KW.

20.2.9. The proposed tariff and that approved by the Commission is being given in the following tables:

Table: 63-Non-Domestic Category (LT-2 and HT-2) - Existing and Proposed tariff for FY 2013-14

EXISTING TARIFF PROPOSED TARIFF

Non-Domestic Energy Charges Fixed Charges Non-Domestic Energy Charges Fixed Charges LT-NDS(LT-2)

NDS up to 5 KW of SCL NDS up to 5 KW of SCL Consumption upto

Rs.5.60/unit Rs 175/ connection/

Consumption upto first 100 units per month

Rs.5.60/unit

Rs 175/ connection/ month

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100 month

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

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

and upto 200 Unit per month Rs.6.00/unit Consumption above 100 units and upto 200 Unit per month Rs.6.00/unit NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month)

NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month and upto 500 units/month)

Consumption upto first 100 units per month Rs.5.60/unit Rs 210/ connection / month Consumption upto first 100 units per month Rs.5.60/unit Rs 210/ connection / month Consumption above 100 units

and upto 200 Unit per month Rs.6.00/unit Consumption above 100 units and upto 200 Unit per month Rs.6.00/unit Consumption above 200 unit per month Rs.6.25/unit Consumption above 200 units/month and upto 500 units/month Rs.6.25/unit NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month)

NDS up to 5 kW of SCL-type 4 (Consumption above 500 units/month)

Consumption upto first 100 units per

month Rs.5.60/unit Rs 210/ connection / month Consumption upto first 100 units per

month Rs.5.60/unit Rs 250/ connection / month Consumption above 100 units and upto 200 Unit

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

month

Rs.6.25/unit

Consumption above 200 unit per month and upto 500 units per month Rs.6.25/unit Consumption above 500 units per month Rs.7.00/unit NDS above 5 KW of SCL NDS above 5 KW of SCL

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101 Consumption upto

Rs.5.60/unit

Rs.70/ KW of SCL / month

Consumption upto first 100 units per

month Rs.5.60/unit Rs.70/ KW of SCL / month Consumption above 100 units and upto 200 Unit

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

month

Rs.6.25/unit

Consumption above 200 unit per month and upto 500 units per month Rs.6.25/unit Consumption above 500 units per month Rs.7.00/unit Rs.80/ KW of SCL / month HT-NDS (HT-2) HT-NDS (HT-2)

For contract demand over 50 KVA For contract demand over 50 KVA

All Units Rs.6.25/unit

Rs.140/ kVA of Billing Demand

per month

All Units Rs.6.25/unit

Rs.140/ kVA of Billing Demand

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102 Table: 64-Non-Domestic Category (LT-2 and HT-2) –Approved tariff for FY 2013-14

NDS up to 5 KW of Sanctioned Connected Load

LT-NDS(LT-2)

Type 2 Consumption above 100 units/month and upto 200 units/month)

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

Rs 175/ connection / month Consumption above 100 units and upto 200 unit per

month Rs.6.00/unit

LT-NDS(LT-2)

Type 3 (Consumption above 200 units and upto 500 units/month)

month Rs.6.00/unit

Consumption above 200 unit upto 500 unit per

month Rs.6.25/unit

LT-NDS(LT-2)

Type 4 (Consumption above 500 units/month)

month Rs.6.00/unit

Consumption above 200 units and upto 500 units

per month Rs.6.25/unit

Consumption above 500 unit per month Rs.6.60/unit

LT-NDS(LT-2)

Type1 (Consumption upto 100 units/month)

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103

NDS above 5 KW of Sanctioned Connected Load

NDS above 5 KW of SCL (LT-2)

Rs.70/ KW of SCL / month Consumption above 100 units and upto 200 unit

per month Rs.6.00/unit

Consumption above 200 unit upto 500 units per

month Rs.6.25/unit

Consumption above 500 units per month Rs.6.60/unit Rs. 80/ KW of SCL / month HT-NDS (HT-2)

For contract demand over 50 kVA

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

20.2.10. Note: As discussed later in this order, LT – Non-Domestic Consumer having aggregate

sanctioned connected load above 18.65 KW) 25 HP may opt for billing on the basis of demand and in that case fixed charges as applicable for NDS/HT-2 category shall apply and other provisions relating to billing demand and excess demand surcharge etc. as applicable for NDS/HT-2 consumers shall also apply. However, if the demand exceeds 50 KVA the consumer has to shift to HT voltage as per provision of Tariff and Supply Code Regulations.

20.3. Agriculture Supply (LT-4)

20.3.1. Discoms in their petitions have stated that the Agriculture tariff approved by the Commission is far less than the average cost of supply. Therefore the Discoms have proposed the increase in energy charges to gradually bring the tariff for agriculture consumers towards average cost of supply.

20.3.2. Discoms have proposed to increase the energy charges of both the metered and un-metered agricultural consumers which has been summarized in the table after the following paras.

20.3.3. For metered consumers the Discoms have proposed to increase the energy charges from Rs. 2.25/unit to Rs. 3.93/unit for general consumers getting supply in block hours and from Rs. 3.85/unit to Rs. 4.95/unit for consumers getting supply more than block hours.

20.3.4. For flat rate consumers the Discoms have proposed to increase energy charges from Rs. 285/HP/month to Rs. 470/HP /month for general consumers

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104 getting supply in block hours and from Rs. 430/ HP/month to 600/HP/month for consumers getting supply more than block hours.

20.3.5. No changes have been proposed in fixed charges of Agriculture metered and flat rate category and the Commission has accepted the same.

20.3.6. 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. 1.35/unit to Rs. 3.03/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. 1.75/unit to Rs. 2.85/unit. In case of general Flat Rate consumers getting supply in block hours, the Govt. subsidy would be increased from existing Rs. 200/HP/month to Rs. 385/HP/month, whereas for other flat rate consumers getting supply more than block hours, the subsidy is proposed to be increased from Rs. 200/HP/month to Rs. 370/HP/month.

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

Table: 65-Agriculture Category (LT-4) — Existing and Proposed tariff for FY 2013-14

Particulars EXISTING TARIFF PROPOSED TARIFF

EC Subsidy indicated to be received from GoR Effective EC after subsidy Fixed Charges EC Subsidy indicated to be received from GoR Effectiv e EC after subsidy Fixed Charges

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

(i) General (getting supply in block hours) Rs. 2.25/un it Rs. 1.35/unit Rs. 0.90/unit Rs.15/ HP/ month Maximum Rs 250/month/consu mer(Subsidy above Rs 45/Connection / Month ) (i) General (getting supply in block hours) Rs. 3.93/u nit Rs. 3.03/unit Rs. 0.90/u nit Rs.15/ HP/ month Maximum Rs 250/month/cons u mer(Subsidy above Rs 45/Connection / Month ) (ii)All others notcovered under items (i) and getting supply Rs. 3.85/ unit Rs. 1.75/ unit Rs. 2.10/unit Rs.30/ HP/ month Maximum Rs500/ month/ consumer(Subsidy above Rs50/Connection / Month (ii)All others notcovere d under items (i) and Rs. 4.95/ unit Rs. 2.85/ unit Rs. 2.10/u nit Rs.30/ HP/ month Maximum Rs500/ month/ consumer(Subsid y above

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105

Particulars EXISTING TARIFF PROPOSED TARIFF

more than block hours getting supply more than block hours Rs50/Connection / Month

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

i)General (getting supply in block hours) Rs.285/ HP/ Month Rs.200/ HP/ Month 85 / HP/ Month Rs.15/ HP/ month Maximum Rs 250/ month/ consumer(Subsidy above Rs 15/Connection / Month ) i)General (getting supply in block hours) Rs.470/ HP/ Month Rs.385/ HP/ Month 85 / HP/ Month Rs.15/ HP/ month Maximum Rs 250/ month/ consumer(Su bsidy above Rs 15/Connectio n / Month ) (ii)All others not covered under items (i)above and getting more than block hour supply Rs 430/ HP/ Month Rs 200/ HP/ Month Rs 230/ HP/ Month Rs.30/ HP / month Maximum Rs 500/ month/ consumer(Subsidy above Rs 20/Connectio n / Month ) (ii)All others not covered under items (i)above and getting more than block hour supply Rs 600/ HP/ Month Rs 370/ HP/ Month Rs 230/ HP/ Month Rs.30/ HP / month Maximum Rs 500/ month/ consumer(Su bsidy above Rs 20/Connectio n / Month )

Tariff for agriculture consumers

20.3.8. 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.

20.3.9. As mentioned earlier, the tariff of this category has to progressively increase in a manner so as to bring down the cross subsidy as required under the National Tariff Policy as well as in Regulations of the Commission. In last two tariff orders, the tariff for this category has increased considerably to take it towards average cost of supply and to reduce the cross subsidy. A significant increase in tariff of this category is again inescapable and licensees have also proposed considerable increase in energy charges for consumers of this category along with corresponding increase in Government subsidy.

20.3.10. Stakeholders suggested that the tariff of flat rate agriculture consumers should be higher than the tariff of agriculture metered consumers, which would

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106 incentivise them to shift to metered category. The Commission has noted that Discoms have on the contrary proposed a lower average increase (in percentage terms) in the tariff of flat rate consumers (getting supply in block hours) than average increase for metered category (getting supply in block hours). The lower increase in flat rate tariff would result in higher cross-subsidy for flat rate consumers, which also goes contrary to principle of incentivizing consumers to shift to metered category. Considering the said position, the tariff increase for flat rate consumers (getting supply in block hours) is being approved at a level higher than proposed by Discoms. 20.3.11. Accordingly, the tariff determined by the Commission for this category is as

under:

Table: 66-Agriculture Category (LT-4)-Approved Tariff for FY 2013-14

Agriculture Supply Energy Charges (EC)

Fixed Charges Metered (AG/MS/LT-4) EC Subsidy indicated to be received from Govt Effective EC after subsidy (i) General (getting

supply in block hours)

Rs. 3.93

/unit Rs. 3.03 /unit Rs. 0.90 /unit

Rs.15/ HP/ Month of SCL Maximum Rs 250/

month/consumer(Subsidy above Rs 45/Connection / Month ) (ii)All others not

covered under

items (i) and

getting supply

more than block hours

Rs. 4.95

/unit Rs 2.85 /unit Rs 2.10 /unit

Rs.30/ HP/ month of SCL Maximum Rs. 500/ month/consumer(Subsidy above

Rs 50/Connection / Month )

Flat/ unmetered (AG/FR/LT-4) (i)General (getting supply in block hours) Rs. 500 / HP/ Month Rs. 385 HP/ Month 115 HP/ Month Rs.15/ HP/ month of SCL Maximum Rs 250/ month/consumer(Subsidy above Rs 15/Connection / Month ) (ii)All others not

covered under

items (i) above and getting more than block hour supply Rs 600 HP/ Month Rs 370 HP/ Month Rs. 230 HP/ Month Rs.30/ HP/ month of SCL Maximum Rs 500/ month/consumer(Subsidy above Rs 20/Connection / Month )

Applicability of Fixed Charges on sanctioned connected load or actual connected load whichever is higher

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107 20.3.12. Discoms in their petitions proposed that for Agriculture flat rate consumers,

fixed charges be recovered on the basis of sanctioned connected load or actual connected load, whichever is higher, stating that same is mentioned for energy charges and not for fixed charges.

20.3.13. After the issue of last tariff order dt. 8.8.12 it came to the notice of the Commission that the Discoms while issuing tariff booklet inserted a similar provision in that and the Commission vide its order dt. 21.11.12 clarified that fixed charges for flat rate consumers would be charged on the basis of sanctioned connected load only. In view of the said clarification the proposal of the Discoms is not being considered by the Commission.

20.4. Other Proposals

Tariff for Jaipur Metro Rail Corporation

20.4.1. JVVNL in its petition has proposed that in the prevailing ‘tariff schedule’, there is no separate category for charging tariff for the Metro Rail services in Jaipur. Currently, Railways is being charged under Large Industrial Category (HT-5) and Metro Rail has the similar consumption pattern as would be of Railways and shall also draw energy at the same voltage level. Therefore, JVVNL has proposed to keep the metro in the electric traction category and re-term the ‘Electric Traction’ category as ‘Electric Traction and Metro. The Commission accepts the categorization of Metro and accordingly the term “Railway Traction Load” appearing under applicability of Large Industrial Service shall be read as “Metro and Railway Traction Load”.

20.4.2. However, the Commission feels that the services of two operators are different as Railways carries both passengers as well as goods across the nation, whereas Metro is a Rapid Transit system in Jaipur. Though voltage level for both the consumers is same but their purpose is different. This view of the Commission is also supported by APTEL decision dt. 13.3.2007 in the matter of Northern Railway (NR) V/S Delhi Electricity Regulatory Commission (DERC) wherein the APTEL has also permitted preferential treatment to Delhi Metro Rail Corporation (DMRC).In other states like Haryana, Delhi and Uttar Pradesh the tariff for Metro Rail has been kept lower than the tariff for Railways.

20.4.3. The Commission noted that note (iv) appearing below schedule LP/HT-5 in booklet “Tariff for Supply of Electricity” reads as under:

Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after 17.12.2004. This rebate will be available for a

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108

period of five years from the date of electrification after which normal traction tariff shall be charged.

Looking to above facts, the Commission finds it appropriate to also allow a rebate of 10% on energy charges of LP/HT-5 for Metro Rail services in Rajasthan for a period of five years from the date of electrification after which normal tariff shall be charged. Accordingly, the note (iv) shall be amended as under:

Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after 17.12.2004. This rebate will be available for a period of five years from the date of electrification after which normal traction tariff shall be charged. Similarly a rebate of 10% will be given on energy charges on energy consumed by Metro Rail services in Rajasthan for a period of 5 Years from the date of electrification after which normal traction tariff shall be charged.”

20.4.4. Metro Rail will be categorized under Large Industrial Category (HT-5) and all other provision applicable to Large Industrial category shall be applicable to Metro Rail.

20.4.5. It is also clarified that Non traction load of Metro shall be billed under respective categories as applicable to that load.

Change in the Definition of Maximum Demand

20.4.6. Discoms proposed to modify the existing definition of Maximum Demand as appearing in booklet “Tariff for Supply of Electricity” as under:

“Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive period of 30/15 minutes of maximum use during the month.”

20.4.7. Stakeholders have referred to the section 62 (3) of Electricity Act 2003 and objected that Discoms cannot opt for both 15 minutes and 30 minutes time period for the same type of consumer. Discoms should be specific in their proposal i.e. either they choose 15 minutes or 30 minutes.

20.4.8. In reply to objectors queries, Discoms mentioned that the proposal for change in the definition of maximum demand is based on the available metering equipment wherever available and not for all industries. ABT meters has the features of recording 15 minutes block wise maximum demand and thus the same is logical and accordingly they have requested the Commission to add the recording period of 15 minutes along with 30 minutes.

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109 20.4.9. In reply to data gaps, the Discoms informed that maximum demand for 15

minutes block are there where ABT meters are installed and the same is applicable for open access consumer, whereas for other consumers block of 30 minute has been proposed.

Commission’s view:

20.4.10. As per regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004, the definition of Maximum demand is as follows:

‘Maximum Demand’ shall mean the average kVA delivered at the point of supply of a consumer during any consecutive period of 30 or 15 minutes of maximum use during the month, as may be specified by the licensee, with the approval of Commission.

20.4.11. Whereas, the existing definition given in the tariff booklet reads as under:

Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive period of 30 minutes of maximum use during the month.

20.4.12. As per RERC (Terms & Conditions for Open Access)(3rd Amendment) Regulations, 2004, the Commission specified the Open Access agreement for case of distribution system & for HT supply of which clause 9 of scheduling and clause 29 (2) of billing are as follows:

9. Scheduling:

(ii)The day ahead schedule injection/ drawal shall be furnished each day,

not later then 10.00 AM, to State Load Despatch Center, Heerapura, for each 15 minute block starting from 00.00 hrs. for the ensuing day;

(iii)Further, if it involves open access to inter state transmission system, open access customer shall cause his supplier to furnish day ahead schedule on 15 minute block basis at prescribed time to the Northern Regional Load Dispatch Center in accordance with the prescribed procedure with a copy to SLDC.

29. Billing

(2)The Billing shall be made as per finalized energy accounts issued by SLDC, based on various para-meters at 15 minutes interval, starting from 0.00 hours of the day, stored in ABT complaint meters and as specified by the Commission.

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110 20.4.13. It may be mentioned that energy accounting & scheduling for Open Access

consumers is for each 15 minutes time block as distinct from other consumers. In view of this, reckoning of maximum demand based on 15 minutes time block for open access consumers as clarified by the petitioners in their reply to data gap seems a reasonable proposition and is worth consideration. Considering that Commission as per regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004 is empowered to specify the time period for the purpose of maximum demand, the Commission accepts the proposal of the Discoms. Accordingly, Commission directs the Discoms to make required changes in booklet “Tariff for Supply of Electricity”.

Voltage Rebate on Energy Charges

20.4.14. Discoms requested to revise the applicability of voltage rebate for all categories of consumers. They stated that presently voltage rebate is on the basis of amount which includes fixed and energy charges. However looking to the huge expenses already incurred in respect of the development of infrastructure for providing supply to the consumer on higher voltages allowing voltage rebate on fixed charges is not appropriate. Accordingly they proposed that voltage rebate should be allowed only on the energy charges or units billed.

20.4.15. In view of the comments of the stakeholders as discussed in section 2 of this order, the Commission is not inclined to accept the said proposal of the Discoms in this regard.

Demand based Billing

20.4.16. Regarding demand based billing, some of the stakeholders have suggested that the demand based billing should be considered for all category of consumers. In response to that Discoms have stated that demand based billing for all consumers having sanctioned load above 18.65 KW can be made applicable as the meters capable of reading demand are installed for such consumers.

20.4.17. The Commission in its last tariff order dt. 8.8.12 while giving option for demand based billing for LT Medium Industrial consumers also noted that it also wishes

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111 to extend this facility in phased manner based on examination of metering status and feasibility in respect of LT consumer of other categories.

20.4.18. Though no proposal regarding demand based billing was received from Discoms, the Commission feels that it should move towards goal of demand based billing for all categories of consumers. However, due to metering constraints it may not be possible for the Commission to allow demand based billing to LT consumers with sanctioned connected load of upto 18.65 kW. 20.4.19. Accordingly the Commission directs that LT consumers of Non Domestic

category (NDS/LT-2) and Bulk supply for Mixed load category (ML/LT-7) having sanctioned connected load more than 18.65 KW (25HP) may opt for billing on the basis of demand and in that case fixed charges as applicable for NDS/HT-2 & ML/HT-4 category shall apply respectively and other provisions relating to billing demand and excess demand surcharge etc. as applicable for NDS/HT-2 & ML/HT-4 consumers shall also apply. However, if the demand exceeds 50 KVA the consumer has to shift to HT voltage as per provision of Tariff and Supply Code Regulations.

20.4.20. 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.

20.4.21. With shifting of consumers to demand based billing there also appears to be a need to rationalize methodology for checking connected load of the consumers, so as to avoid any undue harassment of LT consumers. The Discoms may review the existing provisions relating to this and if required furnish a separate proposal for amendment in Supply Code Regulations.

18. Approved tariff for FY 2013-14

18.1. In the light of discussion as above the approved tariff for FY 2013-14 for different categories is appended with this order, which indicates existing tariff as well as the approved tariff based on revision allowed by the Commission. 19. Revenue due to tariff revision

19.1.1. 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

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112 incentive/surcharge or rebates, whose implication may be same as existing. 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.

19.1.2. Discom wise revenue at existing and revised tariff as approved by the Commission are as follows:

Table: 67- : Jaipur Discom- Revenue at Existing & Revised Tariff as Approved by the Commission for FY 2013-14 (Rs. crore)

Consumer Categories Revenue at Existing Tariff Revenue at Revised Tariff Increase Allowed Domestic 2,087 2,088 2 Non-Domestic 1,262 1,271 8

Public Street Light 81 81 -

Agriculture (Metered) 1,103 1,823 720

Agriculture (Flat) 163 279 116

Small Industry 161 161 -

Medium Industry 423 423 -

Large Industry 2,427 2,427 -

Public Water Works (S) 97 97 -

Public Water Works (M) 16 15 -

Public Water Works (L) 122 122 -

Mixed Load 108 108 -

Electric Traction 303 303 -

Total 8,354 9,200 846

Other Income 76 76 -

Grand Total 8430 9,276 846

Table: 68- : Ajmer Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY 2013-14 (Rs. crore) Consumer Categories Revenue at Existing Tariff Revenue at Revised Tariff Increase Allowed Domestic 1,553 1,554 1 Non-Domestic 587 590 3

Agriculture (Metered) 726 1,202 476

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Large Industry 1,614 1,614 -

Mixed Load 69 69 -

Electric Traction - - -

Total 5,692 6,399 707

Other Income 40 40 -

Grand Total 5732 6,439 707

Table: 69-: Jodhpur Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY 2013-14 (Rs. crore)

Consumer Categories Revenue at Existing Tariff Revenue at Revised Tariff Increase Allowed Domestic 1,464 1,465 1 Non-Domestic 590 592 2

Agriculture (Metered) 1,315 2,211 896

Medium Industry 335 335 -

Large Industry 657 657 -

Mixed Load 204 204 - Electric Traction - - - Total 5,481 6,604 1,123 Other Income 39 39 - Grand Total 5520 6,643 1,123 20. Cross Subsidy

20.1. 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.

20.2. 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

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114 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

.

20.3. The last tariff revision in the year 2012 was virtually the second 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 two revisions was not feasible. The phasing out of subsidy has to be done through successive tariff revisions.

20.4. 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: 70 - Average Cost of Supply

JVVNL AVVNL JdVVNL Rajasthan

Net ARR (Rs. In crore) 10,003 7,382 7,861 25,247

Sales (MU) 17,173 11,995 13,150 42,318

COS (Rs./Unit) 5.83 6.15 5.98 5.97

20.5. The cross subsidy across consumer categories at the revised tariff rate for the three Discoms for FY 2013-14 based on average cost of supply is provided in the table below:

Table: 71 - Cross subsidy at revised tariff

Cross subsidy JVVNL AVVNL JdVVNL Rajasthan

Domestic _-7.18% _-9.88% _-6.97% _-7.70%

Non-Domestic _21.50% _15.45% _16.14% _18.48%

Public Street Light _-4.37% _-8.13% _-11.53% _-8.15% Agriculture (Metered) _-28.89% _-32.46% _-31.55% _-30.70% Agriculture (Flat) _-27.86% _-31.20% _-29.53% _-29.10% Small Industry _-0.82% _-4.61% _-3.04% _-2.28% Medium Industry 3.59% -4.93% -0.67% -0.16%

Large Industry _0.50% _-0.03% _13.92% _2.08%

Public Water Works (S) _2.24% _-4.33% _-4.81% _-2.56% Public Water Works (M) _-17.75% _-20.60% _-19.10% _-18.68%

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115 Public Water Works (L) _-0.30% _-7.07% _-5.63% _-4.53%

Mixed Load -5.30% -1.53% -3.22% -3.13%

Electric Traction _-4.44%

21. Revenue Surplus/ Deficit at revised Tariff

21.1. Although the additional revenue on account of tariff revision works out to Rs. 2676 crore 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 the full year and works out to be approximately Rs. 705 crore for JVVNL, Rs. 589 crore for AVVNL, Rs. 936 crore for JdVVNL and Rs. 2230 crore for all Discoms. The position of deficit at revised tariff for the full year and remaining period of FY 13-14 works out to be as under:

Table: 72-: Revenue Deficit as approved by the Commission for FY 2013-14 -JVVNL (Rs. Crore)

Particular At existing

Tariff

At revised Tariff for full

year At revised Tariff for remaining part of the year

Aggregate Revenue Requirement _10,003 _10,003 _10,003

Revenue generation (including other

income) 8,430 9,276 9,135

Revenue Deficit _1,573 ₇₂₇ ₈₆₈

ED retention ₄₉₄ ₄₉₄ ₄₉₄

Transitional Cash Support from GoR ₁₆₄ ₁₆₄ ₁₆₄

Differential Interest subvention on WB

loan 5 5 5

Net Revenue Deficit ₉₁₀ ₆₄ ₂₀₅

Table: 73- : Revenue Deficit as approved by the Commission for FY 2013-14 (Rs. Crore)-AVVNL

Tariff

At revised Tariff for full year

At revised Tariff for remaining part of the year

income) 5,732 6,439 6,321

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ED retention ₃₅₆ ₃₅₆ ₃₅₆

Transitional Cash Support from GoR ₁₂₂ ₁₂₂ ₁₂₂

loan 5 5 5

Net Revenue Deficit _1,168 ₄₆₁ ₅₇₉

Table: 74- : Revenue Deficit as approved by the Commission for FY 2013-14-JdVVNL (Rs. Crore)

Tariff

At revised Tariff for full

year At revised Tariff for remaining part of the year

income) 5,520 6,643 6,456

Revenue Deficit _2,341 _1,218 _1,405

ED retention ₃₀₀ ₃₀₀ ₃₀₀

Transitional Cash Support from GoR ₁₃₄ ₁₃₄ ₁₃₄

loan 4 4 4

Net Revenue Deficit _1,903 ₇₇₉ ₉₆₇

21.2. Discoms have not envisaged meeting the entire deficit for FY 2013-14 in the proposed tariff and have proposed that unfunded gap will be met through short term borrowings.

21.3. The revenue gap in past upto FY 2010-11 had increased substantially over the years primarily on account of long gap in tariff revision from the tariff order in December, 2004 to the next revision vide order dated 8.9.2011 for FY 2011-12. The Long gap about 6.5 years in tariff revision resulted in accumulated losses becoming too high. To avoid tariff shock to consumers, such gap would have to be wiped out through successive tariff adjustments over a period of time. In view of this, the revenue gap, even after this tariff order, would exist, though the same has come down quite significantly after the three successive tariff increases, including the current one. The revenue gap as approved as per this order could be met through borrowings.

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117 21.4. Further, vigorous efforts would need to be made in areas like restricting short term power purchase, improving inventory management, recovery of arrears and addressing manpower related issues to improve quality of service. Overall T&D losses, though have come down over the years, but this would need to be sustained to reach the targeted loss level.

21.5. This tariff order shall remain in force till 31st_{March 2014 or till the next tariff} order of the Commission. 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 large circulation in their respective areas of supply. This tariff order 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.

21.6. 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