Microsoft Word - DISCOM Tariff Order 23-24 Dt.01.04.2023 (3)

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ODISHA ELECTRICITY REGULATORY COMMISSION

BIDYUT NIYAMAK BHAWAN

PLOT NO. 4, CHUNOKOLI, SHAILASHREE VIHAR,

BHUBANESWAR-751021

************

Present : Shri G. Mohapatra, Member

Shri S. K. Ray Mohapatra, Member

CASE NOS. 82, 83, 88 & 80 of 2022

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),

28.02.2023 at 11.00A.M (TPCODL)

04.03.2023 at 11.00 A.M (TPWODL)

DATE OF ORDER 23.03.2023

IN THE MATTER OF: Applications of Distribution Companies namely TPSODL,

TPNODL, TPCODL & TPWODL for approval of their

Aggregate Revenue Requirement (ARR), Wheeling Tariff

and Retail Supply Tariff for the FY 2023-24 under Sections

62,64 & 86 and other applied provisions of the Electricity

Act, 2003 read with relevant provisions of OERC (Terms and

Conditions for determination of Wheeling and Retail Supply

Tariff) Regulations, 2022 and OERC (Conduct of Business)

Regulations, 2004 and other Tariff related matters.

AND

CASE NOs. 86, 87, 89 & 85 of 2022

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),

28.02.2023 at 11.00A.M (TPCODL)

04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Applications for approval of Open Access Charges for FY 2023-

24 in accordance with OERC (Terms and Conditions of Intra-

State Open Access Charges) Regulations, 2020 for approval of

Wheeling Charges, Cross Subsidy Surcharge, Additional

Surcharge & Standby charges applicable to Open Access

Customers for use of intra-state transmission/ distribution

system in view of Section 42 of the Electricity Act, 2003 of

DISCOMs namely TPSODL, TPNODL, TPCODL & TPWODL.

AND

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CASE NO. 06 of 2023

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period

of FY 2020-21(3 months) and for FY 2021-22 under Section

62& 86(1) and all other applicable provisions of the Electricity

Act, 2003 read with relevant provisions of OERC (Terms and

Conditions for determination of Wheeling and Retail Supply

Tariff) Regulations, 2022 and OERC (Conduct of Business)

Regulations, 2004 and other Tariff related matters.

AND

CASE NO. 84 of 2022

DATE OF HEARING : 27.02.2023 at 11.00 A.M (TPNODL)

IN THE MATTER OF: Application for approval of Truing up expenses for FY 2021-22

under Sections 62 & 86(1) and all other applicable provisions of

the Electricity Act, 2003 read with relevant provisions of OERC

(Terms and Conditions for determination of Wheeling and

Retail Supply Tariff) Regulations, 2022 and OERC (Conduct of

Business) Regulations, 2004 and other Tariff related matters.

AND

CASE NOs. 90 & 91 of 2022

DATE OF HEARING : 28. 02.2023 11.00 A.M (TPCODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period of

FY 2020-21 (June, 2020 to March, 2021) and for FY 2021-22

under Sections 62 & 86(1) and all other applicable provisions of

the Electricity Act, 2003 read with relevant provisions of OERC

(Terms and Conditions for determination of Wheeling and

Retail Supply Tariff) Regulations, 2022 and OERC (Conduct of

Business) Regulations, 2004 and other Tariff related matters.

AND

CASE NO. 81 of 2022

DATE OF HEARING : 04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period of

FY 2020-21 (3 months) and for FY 2021-22 under Sections 62 &

86(1) and all other applicable provisions of the Electricity Act,

2003 read with relevant provisions of OERC (Terms and

Conditions for determination of Wheeling and Retail Supply

Tariff) Regulations, 2022 and OERC (Conduct of Business)

Regulations, 2004 and other Tariff related matters.

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AND

CASE NOS. 12, 10, 11 & 13 of 2023

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),

28.02.2023 at 11.00A.M (TPCODL)

04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Applications of Distribution Companies namely TPSODL,

TPNODL, TPCODL & TPWODL for approval of their

Business Plan for FY 2023-24 in compliance to OERC (Terms

and Conditions for determination of Wheeling and Retail

Supply Tariff) Regulations, 2022.

O R D E R

The Distribution Companies in Odisha namely TPSODL, TPNODL, TPCODL and

TPWODL are carrying out the business of distribution and retail supply of electricity in

their licensed areas as detailed below:

Table – 1

Sl.

No.

Name of

DISCOMS

Licensed Areas (Districts) %age area of

the State of

Odisha

1. TPSODL Ganjam, Gajapati, Kandhamal, Boudh, Rayagada, Koraput,

Nawarangpur and Malkanagiri.

30.8

2. TPNODL Mayurbhanj, Keonjhar, Bhadrak, Balasore and major part

of Jajpur.

18.0

3. TPCODL Puri, Khurda, Nayagarh, Cuttack, Denkanal, Jagatsinghpur,

Angul, Kendrapara and some part of Jajpur.

18.9

4. TPWODL Sambalpur, Sundargarh, Bolangir, Bargarh, Deogarh,

Nuapara, Kalahandi, Sonepur and Jharsuguda.

32.3

Odisha Total 100.0

The Commission initiated proceedings on the filing of Applications in respect of

Aggregate Revenue Requirement (ARR), Wheeling Tariff and Retail Supply Tariff

(RST) for FY 2023-24 of the aforesaid Distribution Companies under Sections 62, 64

& 86 and other related provisions of the Electricity Act, 2003 read with relevant

provisions of the OERC (Terms and Conditions for determination of Wheeling and

Retail Supply Tariff) Regulations, 2022 and the OERC (Conduct of Business)

Regulations, 2004 and other matters related to Tariff. All these above stated

Applications are disposed of by this common Order as follows:

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A. PROCEDURAL HISTORY (PARA 2 TO 12)

2. After the revocation of licenses of distribution Utilities such as SOUTHCO, NESCO,

WESCO and CESU, the Commission under Section 21 of the Electricity Act, 2003 has

transferred the responsibilities of erstwhile distribution utilities to TPSODL, TPNODL,

TPWODL and TPCODL with effect from 01.01.2021, 01.04.2021, 01.01.2021 and

01.06.2020 respectively through separate vesting orders.

3. As per the OERC (Conduct of Business) Regulations, 2004 and the OERC (Terms and

Conditions for determination of Wheeling and Retail Supply Tariff) Regulations, 2022,

the DISCOMs i.e. TPCODL, TPWODL have filed their Aggregate Revenue

Requirement (ARR), Wheeling Tariff and Retail Supply Tariff (RST) Applications for

FY 2023-24 on 09.01.2023, whereas TPSODL & TPNODL have filed their Aggregate

Revenue Requirement (ARR), Wheeling Tariff and Retail Supply Tariff (RST)

Applications for FY 2023-24 on 10.01.2023.

4. The said Aggregate Revenue Requirement (ARR), Wheeling Tariff & Retail Supply

Tariff applications were duly scrutinized and registered as Case Nos. 82/2022

(TPSODL), 83/2022 (TPNODL), 88/2022 (TPCODL) and 80/2022 (TPWODL)

respectively.

5. As per direction of the Commission, applicants have published the Aggregate Revenue

Requirement (ARR), Wheeling & RST tariff Applications in the prescribed formats in

the leading and widely circulated Odia and English newspapers in their area of

operation in order to invite objections/suggestions from the general public. The above

applications were also posted in the Commission’s website (www.orierc.org) including

the website of the Distribution Utilities. The Commission had also directed the

applicants to file their respective rejoinders to the objections filed by all the objectors.

6. In response to the said public notices, the Commission received objections/ suggestions

from the following persons/ associations/ institutions/ organizations as mentioned

below against each of the respective distribution companies:-

Objections/Suggestions on the Applications of TPSODL:-

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &

President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,

Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,

Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3) Shri Priyabrata sahu, S/o.

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Late Adikanda Sahu, At-Bijay Bihar, 3

rd

Lane, P.O: Berhampur, Dist.-Ganjam-

760001,(4) M/s. East Cost Railway, Bhubaneswar-751017, (5) Shri R. P. Mahapatra,

Retd. Chief Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev

Vihar, BBSR-751013, (6) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO,

B/L-108, VSS Nagar, Bhubaneswar-751007, (7) Shri Soumya Ranjan Patnaik, S/o. Late

Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli,

Bhubaneswar-751015, (8) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur Road,

Dist.-Jajpur-756019, (9) M/s. Utkal Chamber of Commerce & Industry Ltd.(UCCI), N-

6, IRC Village, Nayapalli, Bhubaneswar-751015, (10) Shri Panchanana Jena, S/o. Late

Bairagi Jena, Working President, Bijuli Karmachari Sangha, Sakti Nagar, 3

rd

Lane,

Engineering School Road, Berhampur-760010, (11) Shri Umakanta Mohapatra, S/O.

Late Prabodha Chandra Mohapatra, At/P.O: Sunhat, P.S;Town, Dist.-Balasore-756002,

(12) M/s. Grinity Power Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar, Ghatikia,

Bhubaneswar-751029, (13) Shri Ananta Narayan Mahanty, S/o. Shri Biswanath

Mahanty, At/P.O: Bamakoyi, P.S: K.Nuagum, Dist.-Ganjam-761042, (14) Shri

Bibekananda Mohanty, Advocate, S/O. Late Harekrushna Mohanty, Civil Society,

Jajpur Road, Dist-Jajpur-755019, (15) Shri Asitananda Biswal, S/o. Late Gobinda

Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-755019,(16) Shri

Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony, Rayagada, Dist.

Rayagada-765001,(17) Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-Natapada,

P.O: Jajpur Road, Dist-Jajpur-755019,(18) Shri Subrat Kumar Behera, Advocate, At-

Ranipatna, P.S/Dist.-Balasore-756001, (19) Shri Manoranjan Routray, S/O. Shri Khetra

Mohan Routray, At-Tritha Temple Street, P.S/P.O/Dist.-Koraput, (20) Shri Jayanta

Kumar Jena, S/O. Late Baikuntha Bihari Jena, At-Plot No.40, Bapuji Nagar, P.O:

Ashoknagar, Bhubaneswar-9,Dist.-Khordha, (21) M/s. GRIDCO Ltd., Janpath,

Bhubaneswar-22, (22) All India Weavers Welfare and Charitable Trust, C/O: B.C.

Behera, Om Sai Marga, Manik Nagar-5, P.O: Hinjilicut,Dist.-Ganjam-761102,(23) M/s.

ATCTelcom Infrastructure (P) Ltd.,4

th

Floor Module-A, Fortune Tower,

Chandrasekharpur, Bhubaneswar-751023,(24) M/s. Maa Bana Devi Poultry Pvt. Ltd.,

At/P.O: Nuagoan, Via-Aska, Dist.-Ganjam-761010, (25) Shri Ananda Kumar

Mohapatra, S/O. Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD

Town, PS-Lingaraj Police Station, Bhubaneswar-751002, (26) M/s. Indian Energy

Exchange, Plot No.C-001/A/1, 9

th

Floor, Max Towers, Sector-16B, Noida, Gautam

Buddha Nagar, U.P.-201301,(27) M/s. OPTCL, Janpath, Bhubaneswar-22,(28) Chief

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Load Despatcher, SLDC,SLDC Building, GRIDCO Colony, Mancheswar,

Bhubaneswar-751017, ( 29) Grahak Panchayat, Friends Colony, Paralakhemundi, Dist-

Gajapati-761200 (Consumer Counsel), (30) Secretary, PRAYAS, Energy Group,

Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India (Consumer

Counsel),(31) The Principal Secretary to Govt. Department of Energy, Govt of Odisha

All the above named objectors have filed their objections/suggestions and out of the

above, Objector Nos. 2,4,12,15,22,23,26,28 and both the Consumer Counsel remained

absent during hearing through hybrid mode and also had not submitted their written

notes of submission for consideration by the Commission. All written submissions filed

by objectors were taken on record and considered by the Commission. The Commission

heard the applicant, the Objectors, Consumer Counsel and the representative of Govt. of

Odisha, Department of Energy and others who were present during hearing.

Objections/Suggestions on the Applications of TPNODL:-

(1)

Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &

President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,

Bhubaneswar-751012, (2) M/s. Relia

nce JIO Infocom Ltd., Wing A&B, First Floor,

Fortune Tower, Chandrasekharpur, Bhubaneswar-

751023, (3)M/s. North Odisha

Chamber of Commerce and Industry (NOCCI), Ganeswarpur Industrial Estate,

Januganj, Balasore-756019, (4) Shri Priyabrata Sahu, S/o. Late Adikanda Sahu, At-

Bijay Bihar, 3rd Lane, P.O: Berhampur, Dist.-Ganjam-760001

,(5) M/s. East Cost

Railway, Bhubaneswar-751017, (6)

Shri R. P. Mahapatra, Retd. Chief Engineer &

Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-751013, (7)

Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-

108, VSS Nagar,

Bhubaneswar-751007, (8)

Shri Soumya Ranjan Patnaik, S/o. Late Brajabandhu

Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli, Bhubaneswar-

751015,(9) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur Road, Dist.-Jajpur-

756019, (10) M/s. Utkal Chamber of Commerce & Industry Ltd.(UCCI), N-

6, IRC

Village, Nayapalli, Bhubaneswar-751015, (11) M/s. Sita Ratan International, At-

Ward

No.4,Near M.P.K. Girls High School, Lalbazar, P.O/P.S: Baripada, Dist.-Mayurbhanj-

757001,(12) Shri Panchanana Jena, S/O. Late Bairagi Jena,

Working President, Bijuli

Karmachari Sangha, Sakti Nagar, 3rd Lane, Engineering School Road, Berhampur-

760010, (13) Shri Umakanta Mohapatra, S/O. Late Prabodha Chandra

Mohapatra,

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At/P.O: Sunhat, P.S;Town, Dist.-Balasore-756002,(14) M/s. Tata S

teel Ltd,

Kalinganagar Industrial Complex, At/P.O: Duburi, JK Road, Dist.-Jajpur-

755026, (15)

M/s. Visa Steel Ltd., Kalinganagar Industrial Complex, At/P.O: Jakhapura, Dist.-

Jajpur-755026, (16) M/s. Grinity Power Tech Pvt. Ltd., At-K-

8/82,Kalinga Nagar,

Ghatikia, Bhubaneswar-751029, (17) Shri Ananta Narayan Mahanty, S/O.

Shri

Biswanath Mahanty, At/P.O: Bamakoyi, P.S:K.Nuagum, Dist.-Ganjam-

761042, (18)

Shri Bibekananda Mohanty, Advocate, S/O. Late Harekrushna Mohanty,

Civil

Society, Jajpur Road, Dist-Jajpur-

755019, (19) Shri Asitananda Biswal, S/o.Late

Gobinda Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-

755019,(20)

Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative

Colony, Rayagada, Dist.

Rayagada-765001,(21)Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-Natapada,

P.O:Jajpur Road, Dist-Jajpur-755019, (22) Shri Subrat Kumar Behera, Advocate, At-

Ranipatna, P.S/Dist.-Balasore-756001, (23) Shri Manoranjan Routray, S/O.

Shri

Khetra Mohan Routray, At-Tritha Temple Street, P.S/P.O/Dist.-Korapu

t, (24) Shri

Jayanta Kumar Jena, S/O. Late Baikuntha Bihari Jena, At-

Plot No.40, Bapuji Nagar,

P.O: Ashoknagar, Bhubaneswar-9,Dist.-

Khordha, (25) M/s. GRIDCO Ltd., Janpath,

Bhubaneswar-22, (26) M/s. Balasore Alloys Ltd., Balgopalpur, Balasore-

756020, (27)

Shri Ananda Kumar Mohapatra, S/O. Jachindranath Mohapatra, Plot No. 799/4,

Kotitirtha Lane, Po-OLD Town, PS-Lingaraj Police Station, Bhubaneswar-

751002,(28) Er..(Dr.) P.K. Pradhan, 4-

B, Jayadurga Nagar, Budheswari Colony,

Bhubaneswar-751006, (29) M/s. Indian Energy Exchange, Plot No.C-

001/A/1, 9th

Floor, Max Towers, Sector-16B, Noida, Gautam Buddha Nagar, U.P.-

201301,(30)

Shri Prasanta Kumar Panda, District Executive Member, BJP, At-Goudapada, P.O:

Jamujhadi, Via Simulia, Dist.- Balasore-756126, (31) M/s. O

PTCL, Janpath,

Bhubaneswar-

22, (32) Chief Load Despatcher, SLDC,SLDC Building, GRIDCO

Colony, Mancheswar, Bhubaneswar-

751017,(33) Secretary, PRAYAS, Energy Group,

Amrita Clinic, Athawale Corner, Carve Road, Pune-

411004, India (Consumer

Counsel),(31) The Principal Secretary to Govt.

Department of Energy, Govt of

Odisha.

All the above named objectors have

filed their objections/suggestions and out of the

above, Objector Nos.2,5,12,16,20,21,22,23,24,26,28,29,30 & 33 remained

absent

during hearing through hybrid mode. The Consumer Counsel

namely Odisha

Consumers Association, Balasore Chapter, Balasore participated in the hearing

by

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filing their written notes of submission. All written su

bmissions filed by objectors

were taken on record and considered by the Commission. The Commission heard the

applicant, the Objectors, Consumer Councel, Balasore Chapter, the

representative of

the Govt. of Odisha and others who were present during hearing through hybrid mode.

Objections/Suggestions on the Applications of TPCODL:-

(1)

Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &

President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,

Bhubaneswar-751012, (2) M/s.

Reliance JIO Infocom Ltd., Wing A&B, First Floor,

Fortune Tower, Chandrasekharpur, Bhubaneswar-

751023, (3) Shri Kamalakanta Das,

S/o. Late Nishakar Das, Flat No.

D/102, Prestige Residence, Mahadev Nagar,

Jharapada, Bhubaneswar-751006, (4) Shri Priyabrata

sahu, S/o. Late Adikanda Sahu,

At-Bijay Bihar, 3

rd

Lane, P.O: Berhampur, Dist.-Ganjam-

760001,(5) Shri Ashok

Kumar Pattnaik, M/s. BRG Iron & Steel Co.Pvt. Ltd., Flat No.1001, Tower-8, Z-

1,Advait, Nandankanan Road, Patia, Raghunathpur, Bhubaneswar-751024,(6)

M/s.

East Cost Railway, Bhubaneswar-751017,(7)

Shri R. P. Mahapatra, Retd. Chief

Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-

751013,(8) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-

108,

VSS Nagar, Bhubaneswar-751007, (9)

Shri Soumya Ranjan Patnaik, S/o. Late

Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli,

Bhubaneswar-751015,(10) Shri Bidyadhar Mohanty, At-

Chorda, P.O: Jajpur Road,

Dist.-Jajpur-756019, (11) Shri Panchanana Jena, S/O. Late Bairagi Jena,

Working

President, Bijuli Karmachari Sangha, Sakti Nagar, 3

rd

Lane, Engineering School Road,

Berhampur-760010,(12) Shri Jyoti Prakash das, S/o.Late Satyabadi Das, Ex-Member-

ELBO, At-Devimandir, Shaiskh Bazar, Cuttack-753008,(13) M/

s. Utkal Chamber of

Commerce & Industry Ltd.(UCCI), N-6, IRC Village, Nayapalli, Bhubaneswar-

751015, (14) Shri Umakanta Mohapatra, S/O. Late Prabo

dha Chandra Mohapatra,

At/P.O: Sunhat, P.S;Town, Dist.-Balasore-

756002,(15) M/s. Grinity Power Tech Pvt.

Ltd., At-K-8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-

751029,(16) M/s. Jindal Steel

& Power Ltd.,Chhendipada Road, SH 63, P.O.Nisa, Angul-759130,(17) Sh

ri Ananta

Narayan Mahanty, S/O.Shri Biswanath Mahanty, At/P.O: Bamakoyi, P.S:

K.Nuagum,

Dist.-Ganjam-761042, (18) Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-

Natapada, P.O:Jajpur Road, Dist-Jajpur-755019, (19)

Shri Bibekananda Mohanty,

Advocate, S/O.Late Harekrushna Mohanty, Civil Society, Jajpur Road, Dist-Jajpur-

9

755019, (20) Shri Asitananda Biswal, S/o.Lat

e Gobinda Chandra Biswal, At/P.O:

Chorada, Jajpur Road, Dist.-Jajpur-755019,(21)

Shri Prabhakar Dora, Vidya Nagar,

3rd Line, Co-Operative Colony, Rayagada, Dist. Rayagada-7

65001,(22) Shri Subrat

Kumar Behera, Advocate, At-Ranipatna, P.S/Dist.-Balasore-7560

01, (23) Shri

Manoranjan Routray, S/O.Shri Khetra Mohan Routray, At-

Tritha Temple Street,

P.S/P.O/Dist.-Koraput, (24) Shri Jayanta Kumar Jena, S/O.

Late Baikuntha Bihari

Jena, At-Plot No.40, Bapuji Nagar, P.O: Ashoknagar, Bhubaneswar-9,Dist.-

Khordha,

(25) M/s. GRIDCO Ltd., Janpath, Bhubaneswar-22, (26)

M/s. Pragati Milk Product

Pvt. Ltd., Plot No.71/A/1 & 71/A, New Industrial Estate, Jagatpur, Cuttack-

754021,

(27) M/s. ATC Telcom Infrastructure (P) Ltd.,4

th

Floor Module-

A, Fortune Tower,

Chandrasekharpur, Bhubaneswar-751023, (28)

Shri Ananda Kumar Mohapatra, S/O.

Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD Town, PS-

Lingaraj Police Station, Bhubaneswar-

751002,(29) Odish Retired Power Engineers’

Forum, C-7640, Bhoi Nagar, Bhubaneswar-

22, (30) M/s. Indian Energy Exchange,

Plot No.C-001/A/1, 9

th

Floor, Max Towers, Sector-

16B, Noida, Gautam Buddha

Nagar, U.P.-201301, (31) Shri Santosh Kumar Agarwal, A/17,

Ashok Nagar, Market

Building, Bhubaneswar-751009, (32) M/s. OPTCL, Janpath, Bhubaneswar-

22,(33)

Chief Load Despatcher, SLDC,SLDC Building, GRIDCO Colony, Mancheswar,

Bhubaneswar-751017,(34)

Secretary, PRAYAS, Energy Group, Amrita Clinic,

Athawale Corner, Carve Road, Pune-411004, India (Consumer Counsel

), (35)

Secretary, Confederation of Citizen Association, 12/A, Forest Park, Bhubaneswar-

751009(Consumer Counsel),(36) The Principal Secretary to Govt.

Department of

Energy, Govt of Odisha.

All the above named objectors have

filed their objections/suggestions and out of the

above, Objector Nos.2, 5,10,11,12,14,15, 17, 18, 19, 20, 21, 22, 23, 24, 27, 29, 30, 31

& 34 remained absent during hearing through hybrid mode. B

oth the Consumer

Counsel

namely Confederation of Citizen Association, 12/A, Forest Park,

Bhubaneswar-751009 and PRAYAS, Energy G

roup, Amrita Clinic, Athawale Corner,

Carve Road, Pune-411004, India have also remained absent and not filed

their written

note

of submissions for consideration by the Commission. The Commission heard the

applicant, the Objectors, Consumer Counsel and the

representative of Govt. of Odisha,

Department of Energy and others who were present during the hearing.

10

Objections/Suggestions on the Applications of TPWODL: -

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &

President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,

Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,

Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3) M/s. Scan Steels

Ltd.(Unit-III), At-Bai-Bai, Tudalaga, Bargaon, Dist.-Sundargarh-770016, (4) M/s. D.

D. Iron & Steel (P) Limited, H-4/5, Civil Township, Rourkela-769004, Dist-

Sundargarh,(5) M/s. Shree Salasar Castings Pvt. Ltd., Regd. Office-Balanda, Po-

Kalunga, Dist-Sundargarh-770031, (6) M/s. Top Tech Steels Pvt. Ltd., At- Plot

No.972/3634, Hatibari Road, Kuamunda, Dist.-Sundargarh-770031,(7) M/s.Shri Radha

Krishna Ispat Pvt. Ltd., At-Plot No.19 P, Goibhanga, Kalunga, Dist.-Sundargarh-

770031,(8) M/s. Chunchun Ispat Pvt.Ltd.,,At-Usra,P.O: Kaurmunda, Dist.-Sundargarh-

770039,( 9) M/s. Shri Radha Raman Alloys Pvt. Ltd.,At-T-16, Civil Township,

Rourkela, Jharbeda, Kutra, Dist.-Sundargarh-770070, (10) M/s. Scan Steels

Limited,(Unit-I), At- Rambahal, P.O: Keshramal, Near Rajgangpur, Dist.-Sundargarh-

770017,(11) M/s. Puspanjana Alloys Pvt. Ltd., At-Plot No.1562/2565, Balanda, P.O:

Kalunga,Dist.-Sundargarh-770031, (12) M/s. Refulgent Ispat Pvt.Ltd., At-Chikatmati,

Plot No.1437, P.O: Belhidi, Sundargarh-770031,(13) M/s. Arun Steel Industries Pvt.

Ltd.,At-Plot No.373, Jiabahal Road, Kalunga, Dist.-Sundargarh-770031,(14) M/s.

Bajrang Steel & Alloys Ltd.,Plot No.31,Goibhanga,Kalunga,Rourkela, Dist.-

Sundragarh-770031,(15) M/s. Maa Girija Ispat (P) Ltd., At-BB-2, Ground Floor, Civil

Township, Rourkela-769004, Dist-Sundargarh,(16) Shri Priyabrata sahu, S/o. Late

Adikanda Sahu, At-Bijay Bihar, 3

rd

Lane, P.O: Berhampur, Dist.-Ganjam-760001,(17)

M/s. East Cost Railway, Bhubaneswar-751017, (18) Shri R. P. Mahapatra, Retd. Chief

Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-

751013, (19) M/s. Bajrangabali Sponge & Power Ltd., At-Plot No.82, IDC, Kalunga,

Dist.-Sundargarh-770031, (20) Shri Akshya Kumar Sahani, Retd. Electrical Inspector,

GoO, B/L-108, VSS Nagar, Bhubaneswar-751007,(21) Shri Soumya Ranjan Patnaik,

S/o. Late Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony,

Nayapalli, Bhubaneswar-751015,(22) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur

Road, Dist.-Jajpur-756019,(23) Er.(Dr.) P.K.Pradhan,B-4,Jayadurga Nagar, P.O:

Budheswari Colony, Bhubaneswar-751006,(24) M/s. Utkal Chamber of Commerce &

Industry Ltd.(UCCI), N-6, IRC Village, Nayapalli, Bhubaneswar-751015, (25)

M/s.Greengold Bamboo Foundation, At-Dewansaheb Para, P.O/P.S: Bhawanipatna,

11

Kalahandi-766001,(26) Shri Panchanana Jena, S/O. Late Bairagi Jena, Working

President, Bijuli Karmachari Sangha, Sakti Nagar, 3

rd

Lane, Engineering School Road,

Berhampur-760010,(27) Shri Umakanta Mohapatra, S/O. Late Prabodha Chandra

Mohapatra, At/P.O: Sunhat, P.S: Town, Dist.-Balasore-756002,(28) M/s. Grinity Power

Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029,(29) M/s.

Romco Alluminate Pvt. Ltd.,(Formerly known as Rourkela Minerals Company Pvt.

Ltd.), At-Bijabahal, P.O: Kaurmunda, Dist.-Sundargarh-770039, (30) Shri Ananta

Narayan Mahanty, S/O. Biswanath Mahanty, At/P.O:Bamakoyi, P.S;K.Nuagum,Dist.-

Ganjam-761042,(31) Shri Bibekananda Mohanty, Advocate, S/O. Late Harekrushna

Mohanty, Civil Society, Jajpur Road, Dist-Jajpur-755019, (32) Shri Asitananda Biswal,

S/o. Late Gobinda Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-

755019,(33) Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony,

Rayagada, Dist. Rayagada-765001,(34) Shri Rajendra Samal, S/o. Shri Nilamani

Samal, At-Natapada, P.O: Jajpur Road, Dist-Jajpur-755019, (35) Shri Subrat Kumar

Behera, Advocate, At-Ranipatna, P.S/Dist.-Balasore-756001, (36) Shri Manoranjan

Routray,S/O.Shri Khetra Mohan Routray,At-Tritha Temple Street, P.S/P.O/Dist.-

Koraput, (37) Shri Jayanta Kumar Jena, S/O.Late Baikuntha Bihari Jena, At-Plot

No.40, Bapuji Nagar, P.O: Ashoknagar, Bhubaneswar-9,Dist.-Khordha, (38) M/s.

GRIDCO Ltd., Janpath, Bhubaneswar-22, (39) Shri Ananda Kumar Mohapatra, S/O.

Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD Town, PS-Lingaraj

Police Station, Bhubaneswar-751002,(40) M/s. Indian Energy Exchange, Plot No.C-

001/A/1, 9

th

Floor, Max Towers, Sector-16B, Noida, Gautam Buddha Nagar, U.P.-

201301, (41) M/s. Shri Jagannath Alloys Private Ltd., At-Plot No.QQQ-14, Civil

Township, Rourkela, Dist.-Sundargarh-769004,(42) M/s. Ritika Ispat Private Ltd., Plot

No.490, Balanda, Kalunga, Dist.-Sundargarh-770031,(43) M/s. Dalmia Cement

(Bharat) Ltd., At/P.O: Rajgangpur, Dist.-Sundargarh-770017, (44) M/s. Subh Ispat

Pvt.Ltd.,At-Jiabahal, Kalunga, Dist.-Sundargarh-770031,(45) M/s. Vedanta Ltd.,1

st

Floor, C-2,Fortune Tower, Chandrasekharpur, Nandankanan Road, Bhubaneswar-

751023, (46) M/s. ATCTelcom Infrastructure (P) Ltd.,4

th

Floor Module-A, Fortune

Tower, Chandrasekharpur, Bhubaneswar-751023, (47) M/s. OPTCL, Janpath,

Bhubaneswar-22,(48) Chief Load Despatcher, SLDC,SLDC Building, GRIDCO

Colony, Mancheswar, Bhubaneswar-751017, (49) Sambalpur District Consumers

Federation, Balaji Mandir Bhavan, Kheterajpur, Dist.-Sambalpur-678003, (50)

Sundargarh District Employee Association, AL-1, Basanti Nagar, Rourkela-

12

769012,(51) Secretary, PRAYAS, Energy Group, Amrita Clinic, Athawale Corner,

Carve Road, Pune-411004, India (Consumer Counsel), (52) M/s. Juggernaut

Association of Entrepreneurs, Plot No.1294, CRP Square, Nayapalli, Bhubaneswar-

751012,(53) Director of Horticulture, Govt. of Odisha, Krushi Bhawan, Bhubaneswar-

751001,(54) The Principal Secretary to Govt. Department of Energy, Govt of Odisha.

All the above named objectors have filed their objections/suggestions and out of the

above, Objector Nos. 39, 40, 41, 42, 43, 44 & 46 and the Sambalpur District Consumers

Federation, Balaji Mandir Bhavan, Kheterajpur, Sambalpur-678003, Sundargarh

District Employee Association, AL-1, Basanti Nagar, Rourkela.- 769012 and PRAYAS,

Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India

remained absent during hearing through hybrid mode. Beside the above, Shri Ananda

Kumar Mohapatra also participated in the hearing. All the written submissions filed by

the objectors were taken on record and also considered by the Commission. The

Commission heard the applicant, the Objectors, Consumer Counsel and the

representative of Govt. of Odisha, Department of Energy and others who were present

during hearing.

Table – 2

Sl.

No.

Name of the Organisations/persons with address

Name of the Distribution

Utility from where the

Consumer Counsel to

represent

1

Orissa Consumers’ Association, Balasore Chapter,

Balasore

-

756126

TPNODL

2

Sambalpur District Consumers’ Federation, Balaji Mandir

Bhavan, Khetrajpur,

Sambalpur

-

678003

TPWODL

3

Sundargarh District Employee Association, AL-1, Basanti

Nagar, Rourkela

-

769012

TPWODL

4

Grahak Panchayat, Friends Colony, Parlakhemundi, Dist :

Gajapati

-

761200

TPSODL

5

Secretary, Confederation of Citizen Association, 12/A,

Forest Park, BBSR

-

9.

TPCODL

6 The Secretary, PRAYAS Energy Group, Pune-411004

TPCODL, TPNODL, TPWODL

& TPSODL

7. The dates and time for hearing through hybrid mode were fixed and it was duly notified

in the leading English and Odia daily newspaper along with the names of the objectors.

The Commission issued notice to the Govt. of Odisha represented by the Department of

Energy to take part in the hearing.

8. In its consultative process, the Commission conducted public hearings through hybrid

13

mode for TPSODL in its area of supply on 24.02.2023 at 11.00AM.at Rural

Development & Self Employment Training Institute (RSETI) Conference Hall,

Paralakhemundi, Dist.-Gajapati, for TPNODL in its area of supply at “ATRIUM”

NOCCI Business Park Bampada, Chhanpur, Dist.- Balasore-756056 on 27.02. 2023 at

11.00 AM, for TPCODL in its area of Supply at Zilla Parisad Conference Hall, !st

Floor, Zilla Parisad Office, Mahisapat Main Road, NH 55, Near Nirupama Hotel, Dist.-

Dhenkanal on 28.02.2023 at 11.00 AM and for TPWODL in its area of supply at Biju

Patnaik E- Learning Centre Auditorium, VSSUT, Burla, Sambalpur on 04.03.2023 at

11.00 AM. The Commission during hearing heard the Applicants, Consumer Counsel,

World Institute of Sustainable Energy, Pune and the persons/institutions/ organizations

who had filed their written views and participated in the hearing through hybrid mode,

the Objectors present during hearing and the representative of the DoE, Government of

Odisha at length. Parties were directed to file their written note of submission, if any

within 7 days. The applicants were also directed to file their rejoinder/written note of

Submission along with their reply to the queries of the Commission made during

hearings through hybrid mode, if any.

9. DISCOMs have filed their applications relating to Open Access Charges for FY 2023-

24 in accordance with Regulation 22, 23, 24 & 25 of Chapter-5 of the OERC (Terms

and Conditions of Intra-State Open Access Charges) Regulations, 2020 for approval of

Wheeling Charges, Cross Subsidy Surcharge, Additional Surcharge & Stand-by charges

applicable to Open Access Customers for use of intra-state transmission/ distribution

system for FY 2023-24 which were registered as Case Nos. 86, 87, 89 & 85 of 2022 for

TPSODL, TPNODL, TPCODL and TPWODL respectively. TPSODL & TPWODL had

filed their applications for approval of Truing up expenses for 3 months of FY 2020-21

and for the whole financial year 2021-22 which had been registered as Case Nos.6/2023

and 81/2022 respectively. TPCODL had filed truing up application in respect of 10

months for FY 2020-21 and for whole year of FY 2021-22 which had been registered as

Case Nos. 90 & 91 of 2022 respectively. Similarly, TPNODL had filed its truing up

application for FY 2021-22 which had been registered as Case No.84/2022. The above

named DISCOMs of Odisha had also filed their applications for approval of Business

Plan for FY 2023-24 in compliance to OERC (Terms and Conditions for determination

of Wheeling and Retail Supply Tariff) Regulations, 2022 which were registered as Case

Nos.12 of 2023, 10 of 2023, 11 of 2023 & 13 of 2023 for TPSODL, TPNODL,

TPCODL and TPWODL respectively and were taken up for analogous hearing with

14

their ARR & RST applications for FY 2023-24 in compliance to the directions of the

Commission in their vesting orders. The Commission had directed the DISCOMs to

publish the Public Notice regarding their application in widely circulated Odia and

English newspaper inviting views/ suggestion of the public. The Commission had also

posted a copy of their applications in its website.

10. For the sake of addressing the issues involved, the Commission took up hearing of all

the applications of individual DISCOM as stated above through hybrid mode on 24.02.

2023 at 11.00 A.M for TPSODL, on 27.02.2023 at 11.00 A.M for TPNODL, & on

28.02.2023 at 11.00A.M. for TPCODL and on 04.03.2023 at 11.00 A.M for TPWODL

with due notice to the applicants and the objectors.

11. Heard the Applicants, Consumer Counsel, the Objectors present in the hearing and the

representative of Department of Energy, Government of Odisha in extenso.

12. In course of hearing of the present Applications, Learned Objectors Shri R. P.

Mahapatra and some others raised the point of competency of this Commission,

functioning with the Officiating Chairperson and another Member, embarking upon the

exercise of determination of tariff and other related areas etc. which were held to be

unsustainable in the orders passed on the different dates of hearing. Thus, that part of

controversy has reached quietus in the wake of the provisions under Section 93 of the

Electricity Act, 2003 read with Section 9(4) of the Orissa Electricity Reform Act, 1995

and Regulation 8(1)(b) of the OERC (Conduct of Business) Regulations, 2004.

B. ARR & RETAIL SUPPLY TARIFF PROPOSAL FOR 2023-24 (PARA 13 TO 21)

13. Energy Sales, Purchase and Distribution Loss

A statement of Energy Purchase, Sale and Overall Distribution Loss from FY2016-17

to 2023-24 as submitted by DISCOM of Odisha namely TP Central Odisha Distribution

Ltd (TPCODL, erstwhile CESU), TP Western Odisha Distribution Ltd (TPWODL,

erstwhile WESCO Utility), TP Southern Odisha Distribution Ltd. (TPSODL, erstwhile

SOUTHCO Utility) and TP Northern Odisha Distribution Limited. (TPNODL,

erstwhile NESCO Utility) is given below.

Table - 3

15

Energy Sale, Purchase and Loss (Considering railway traction demand)

DISCOMs Particulars

2016-17

(Actual)

2017-18

(Actual)

2018-19

(Actual)

2019-20

(Actual)

2020-21

(Actual)

2021-22

(Actual)

2022-23

(Rev-

Est)

2023-24

(Est)

TPCODL

Energy Sale

(MU)

5488.59 5781.64 6310.92 6273.189 6202.32 6728 7787 8668

Energy

Purchased

(MU)

8139.36 8467.09 8783.92 8160.1 8370.43 8817 10112 10999

Overall

Distribution

Loss %

32.57 31.72 28.15 23.124 25.90 23.69 22.99 21.19

TPNODL

Energy Sale

(M

U)

4077.20 4234.96 4530.91 4722.18 3921.63 4346 5472 6246

Energy

Purchased

(MU)

5329.66 5448.99 5575.60 5439.43 4941.19 5327 6702 7458

Overall

Distribution

Loss %

23.50 22.28 18.74 13.19 20.63 18.40 18.35 16.25

TPWODL

Energy Sale

(MU)

4799.00 5378 5972 6115 5714 7356 10071 10482

Energy

Purchased

(MU)

6969.00 7248 7590 7524 7625 9313 12300 12800

Overall

Distribution

Loss %

31.00 25.81 21.32 18.73 25.07 21.02 18.12 18.11

TPSODL

Energy Sale

(MU)

2141.18 2334.11 2555.88 2619.97 2768.94 3021 3372 3586

Energy

Purchased

(MU)

3273.45 3468.18 3638.94 3468.62 3599.29 3941 4495 4781

Overall

Distribution

Loss %

34.59 32.70 29.76 24.47 23.07 23.34 25 25

14. Sales Forecast

TPCODL has submitted that CAGR is the reasonably common method to project future

sales based on the data of past few years. Due to COVID the sales were not consistent.

Now after normalization of industrial loads, TPCODL is expecting higher sales in HT

and EHT category. TPCODL had projected the sales based on the previous years’

trends and requests for consideration of additional sales in the LT, HT and EHT

consumer categories.

TPNODL has relied on the past ten years’ data with correction for the data during

COVID period while projecting the sales for the year 2023-24. The expected sales for

households being electrified, sales to the new industries reviving their operation after

shutdown during COVID period, consumption of the CGP and steel industries have

been considered on the future projections.

16

TPWODL has submitted that post COVID and after improvement in billing efficiency,

the LT sales is expected to grow at slightly higher rate. However, due to shifting of

electricity consumption through own captive generation by the steel industries and

railways, the EHT sales is expected to grow at very low rate.

TPSODL has submitted that their LT sales is expected to grow at lower rate as the load

in LT segment has already increased post COVID. HT and EHT segment load growth is

expected to be in the range of 6 to 7% on year on year basis.

Table – 4

Sales Forecast

Licensee LT Sales for 2023-24

(Est

imated

)

HT Sales for 2023-24

(Est

imated

)

EHT Sales for 2023-24

(Est

imated

)

Total Sales 2023-24

(Est

imated

)

MU

(MU)

% Rise over

FY22

-

23

(MU)

% Rise over

FY22

-

23

(MU)

% Rise over

FY22

-

23

TPCODL 4902 11% 1908 7% 1858 17% 8668

Remarks

Projected the sales based

on previous years’ trends

and requests in hand.

Higher HT sales projections

due to normalizing of

Industrial Loads post COVID

Higher EHT sales

projections due to

normalizing of Industrial

Loads post COVID.

TPNODL 2607 11.31% 685 8.33% 2953 18.26% 6246

Remarks

Slightly more growth

considered against the

normal growth of 8% due

to various techno-

commercial initiatives to

increase sales and reduce

thefts. Increased sales

due to electrification, agro

industrial activities is

expected to increase LT

sales

Increased consumption by

steel industries and industries

with CGPs will increase

consumption by HT

Consumers

Considering the increasing

fuel costs, increasing open

access tariffs, the CGPs and

OA consumers are again

started availing utilities

power added with few new

consumers licensee is

expecting good growth in

EHT sales

TPWOD

L

3314 7.42% 2123 4.83% 5045 1.69% 10482

Remarks

With improvement in

consumer billing and

increased sales to LT

irrigation consumers, the

LT sales is expected to

grow slightly

Railways consumers shifted

to EHT, significant increase

in agriculture and allied

agriculture consumption

EHT consumption is mainly

by railways, steel industries.

Shifting of consumption by

utilities to their captive

generation has led to less

demand growth in EHT

sector

TPSODL 2553 3.71% 391 6.53% 642 7.04% 3586

Remarks

Load increased post

COVID and hence for FY

2023-24 lower load

growth expected

Load increased in 2022-23

post COVID and further load

growth expected during the

FY 2023-24

Increase in captive

consumption by utilities with

CGPs will lead to lower

growth in this segment

15. System Losses and Collection Efficiency:

17

The System Loss, Collection Efficiency and the target fixed by OERC in respect of

AT&C Loss for the four DISCOMs since FY 2016-17 onwards are given hereunder.

Table - 5

AT&C Loss

DISCOMs Particulars

2016-17

(Actual)

2017-18

(Actual)

2018-19

(Actual)

2019-20

(Actual)

2020-21

(Actual)

2021-22

(Actual)

2022-23

(Rev-

Est.)

2023-24

(Est)

TPCODL

Dist. Loss

(%)

32.57 31.72 28.15 23.124 25.90 23.69 22.99 21.19

Collection

Efficiency

(%)

96.56 96.6 96.60 90.51 95.09 97.36 99 99

AT&C

Loss (%)

34.89 34.04 30.49 30.42 29.54 25.70 23.76 21.98

OERC

Approved

(AT&C

Loss %)

23.77 23.77 23.77 23.77 23.70 23.70 23.70 22.00

TPNODL

Dist. Loss

(%)

23.50 22.28 18.74 13.19 20.63 18.40 18.35 16.25

Collection

Efficiency

(%)

96.25 93.38 94.10 86.38 94.28 94.20 99.00 99.00

AT&C

Loss (%)

26.37 27.43 23.53 25.01 25.17 23.13 19.17 17.09

OERC

Approved

(AT&C

Loss %)

19.17 19.17 19.17 19.17 19.17 19.17 19.17 17.09

TPWODL

Dist. Loss

(%)

31.22 25.81 21.32 18.73 25.07 21.02 18.12 18.11

Collection

Efficiency

(%)

88.00 88 86.87 87.91 97.71 92.93 97.2 99

AT&C

Loss (%)

39.38 34.80 31.64 28.56 26.78 26.60 20.41 18.93

OERC

Approved

(AT&C

Loss %)

20.40 20.40 20.40 20.40 20.40 20.40 20.40 18.90

TPSODL

Dist. Loss

(%)

34.59 32.70 29.76 24.47 23.07 25.00 25.00 25

Collection

Efficiency

(%)

89.90 91.44 86.95 84.34 91 99 99 99

AT&C

Loss (%)

41.20 38.46 38.93 36.30 29.99 25.75 29.50 29.49

OERC

Approved

(AT&C

Loss %)

26.25 26.25 26.25 26.25 26.25 25.75 25.75 25.75

16. Revenue Gap Proposed by the DISCOMs

The Revenue Requirement, Expected Revenue at existing tariff and Gap as submitted

by Odisha DISCOMs are summarized below:

Table - 6

Proposed Revenue Requirement, Expected Revenue and Gap

18

TPCODL TPNODL TPWODL TPSODL Total

Approved

FY 2022-23

Proposed

FY 2023-24

Approved

FY 2022-23

Proposed

FY 2023-24

Approved

FY 2022-23

Proposed

FY 2023-24

Approved

FY 2022-23

Proposed

FY 2023-24

Approved

FY 2022-23

Proposed

FY 2023-24

Total

Revenue

Requirement

4271.21 5207.02 2700.08 3707.34 4079.34 5771.94 1689.27 2289.89 12739.90 16976.19

Expected

Revenue at

Existing

Tariff

4273.00 5144 2701.03 3503.14 4119.48 6171.82 1694.00 1985.71 12787.51 16804.67

Surplus /

(Gap)

1.79 (63.02) 0.95 (204.20) 40.14 399.88 4.73 (304.18) 47.61 (171.52)

17. Inputs in Revenue Requirement for FY 2023-24

a) Power Purchase Expenses

The Licensees have proposed the power purchase costs based on their current BSP,

transmission charges and SLDC charges. They have also projected their SMD

considering the actual SMD during FY 2022-23 and additional SMD in the coming FY

2023-24 which is as shown in the table given below.

Table - 7

Proposed SMD and Power Purchase Cost FY 2023-24

DISCOMs

Estimated

Power

Purchase

in(MU)

Estimated

Sales(MU)

Distribution

Loss(%)

Current

BSP

(Paise/Unit)

Estimated Power

Purchase Cost (Rs.in

Cr.)(Including

Transmission and

SLDC Charges)

SMD

proposed

MVA

TPCODL

1100

2

8668

21.21%

300

3610

2192

TPNODL

7458

6246

16.25%

321

2604

1500

TPWODL

12800

10482

18.11%

360

5100.06

1850

TPSODL

4781

3586

25.00%

227

1220

800

b) Employees Expenses

TPCODL, TPNODL, TPWODL and TPSODL have projected the employee expenses

for FY 2023-24 and revised estimates for FY 2022-23 based on the six months’ actual

expenses. The projected employee expenses are based on the projected employee

strength and has considered the expenses towards salary for permanent and contractual

employees, PF payment, medical and other incentives, terminal benefits, payment of

arrears etc. Further, the net employee expenses after capitalization are compared with

the current year’s projections and summarized in the following table.

Table -8

Employee Expenses after Capitalization

Employee Expenses after TPCODL TPNODL TPWODL TPSODL

19

capitalization

Employee Expenses in 22-23

773.55

429.29

564.71

517.60

Employee Expenses in 23-24

827.23

484.90

614.97

608.90

% Rise YOY

6.94%

12.95%

8.90%

17.64%

c) Administrative and General Expenses

As per the Wheeling and Retail Supply Tariff (RST) Regulations, 2022, the five year

MYT period starts from FY 2022-23 to FY 2027-28. The regulation permits 7%

escalation YOY for estimating the A&G expenses for the ensuing year. The licensees

have only six months’ data of A&G expenses of the base year i.e. for the period from

April 22 to September, 2022. Due to implementation of different activities for

reduction of AT&C loss and increasing the billing & collection, the licensees are

incurring higher A&G expenses than that approved by the Commission. Accordingly,

the licensees have requested 7% increase over the revised estimates of A&G expenses

for the FY 2022-23. Further over the normal escalation of 7%, the licensees have

projected additional A&G expenses for various activities considered as important and

necessary. The approved A&G expenses for the FY 2022-23, revised estimates of A&G

expenses for the FY 2022-23, A&G expenses proposed for the FY 2023-24, and

additional A&G etc. are summarised in following table:

Table - 9

A&G Expenses

A&G expenses TPCODL TPNODL TPWODL TPSODL

A&G expenses approved by OERC for FY

2022

-

23

132.72 84.23 110.39 77.25

Revised estimated A&G expenses for FY

2022

-

23

- 150.84 173.76 -

Estimated Normal A&G expenses for FY

2023

-

24

142 98.21 185.78 68.04

Additional A&G expenses proposed for FY

2023

-

24

20 101.01 76.37 69.55

Total A&G expenses proposed in ARR for

FY 2023

-

24

163.51 199.22 262.16 137.47

The licensees have submitted that the higher A&G expenses during the current and

ensuing year are on account of meter reading, billing and collection, IT Automation,

AMR related expenses, insurance expenses, professional charges, enforcement

activities, Customer care, compensation towards electrical accidents etc.

TPCODL, TPNODL, and TPSODL have proposed additional A&G expenses for the

undertaking the activities related to metering, billing and Collection. TPWODL has

proposed additional A&G expenses towards Energy Audit, special drive for shifting of

20

meter to outside premises, GIS, SCADA, Communication, OT, Data Charges, special

drive to improve MBC activity, re-establishment of energy police stations, IT

automation, Vigilance and enforcement etc.

Accordingly, TPCODL, TPNODL, TPWODL and TPSODL have estimated the A&G

expenses of Rs.163.51 Cr, Rs 199.22 Cr, Rs.262.16 Cr and Rs.137.59 Cr respectively

for the FY 2023-24.

d) Repair and Maintenance (R&M) expenses

As per the Wheeling & RST Regulations 2022, the R&M expenses are permitted at

specified rate on the opening GFA owned by the licensee and at the rate of 3% for the

assets created through consumer contribution and grants. Accordingly, the licensees

have projected the R&M expenses as per following for the FY 2023-24:

Table - 10

R&M Costs (Rs. in Cr)

R&M expenses TPCODL

TPNODL TPWODL TPSODL

Opening GFA of DISCOMS own assets in

Rs. Cr as on 1

st

April

,

2023

5256.99 2778.83 3009.44 1541

% of GFA on DISCOM’s own assets

approved towards R&M

4.2% 4.5% 4.5% 5.4%

R&M Expenses for DISCOM’s own

assets i

n Rs Cr

220.79 125.05 135.42 83.21

Opening GFA of assets created through

grants in Rs. Cr as on 1 April 2023

2350.04 2033.26 3398.17 2406

% of GFA on assets created through

grants approved towards R&M

3% 3% 3% 3%

R&M Expenses for assets created through

grants in Rs Cr

70.50 60.99 101.95 72.18

Total R&M Expenses for FY 2023-24 as

per Regulation 2022

291.29 186.05 237.37 155.40

TPCODL and TPSODL have proposed the R&M expenses of Rs 291.29 Cr and Rs

155.40 Cr respectively based on the normative R&M permitted under the Regulations

2022.

TPNODL has estimated the R&M expenses for FY 2023-24 as Rs.257.19 Cr. towards

Civil repairs and maintenance, distribution line repairs and maintenance, transformer

repairs, Other R&M work etc. They have submitted that the regulation permits special

R&M for the licensees to undertake critical activities which are not covered under

approved capital investment plan. They have mentioned critical need of 11 and 33 KV

AMC for improvement in reliability. Accordingly, TPNODL has proposed R&M

expenses for FY 2023-24 as Rs 257.19 Cr.

21

TPWODL has submitted that for the current FY 2022-23, as per the Wheeling & RST

Regulations 2014, 5.4% of opening GFA is permitted towards R&M. The licensee has

reported that they have incurred the expenditure of Rs 156.03 Cr towards R&M in first

six months and considering balance six month’s total expenditure towards R&M in FY

2022-23 will be close to Rs. 300 Cr. They have further submitted that FY 2023-24

being the first year of the control period and they have already executed the AMCs for

R&M of the distribution lines and to ensure the proper reliability they have requested to

permit R&M at 5.4% of GFA which is Rs. 346.01 Cr for 2023-24.

e) Provision for Bad and Doubtful Debts

The Regulations 2022, allows provision towards Bad and Doubtful Debt at the rate of

1% of the revenue billed for sale of electricity. This 1% revenue is allowed to pass

through in the ARR. The provision for the bad and doubtful debts proposed by the

licensees is as follows:

Table - 11

Provision for Bad and Doubtful Debt

DISCOMs Total revenue

billed for 2023-

24 (Rs in Cr)

1% Provision

towards Bad and

Doubtful Debt

(Rs in Cr)

Proposed Bad

Debts for 2023-24

(Rs in Cr)

TPCODL

5086.6

50.87

TPNODL

3503.14

35.03

TPWODL

6

171.82

61.72

TPSODL

1985.71

19.86

f) Depreciation

As per the OERC Tariff Regulations 2022, the depreciation on the assets transferred

through vesting order is calculated on the pre-up valued cost of assets at pre 1992 rate

on the assets base approved by the Commission. For the new created assets, the

depreciation is calculated based on the straight line method by all the licensees at the

rate defined in the Regulations. Accordingly, the depreciation projected for the ensuing

financial year by TPCODL is Rs.81.38 Cr., by TPWODL Rs.97.06 Cr., by TPNODL

Rs.66.88 Cr. and by TPSODL Rs.62.09 Cr.

g) Interest Expenses

TPCODL, TPNODL, TPWODL & TPSODL have submitted the interest expenses

towards interest on capital loan and working capital and the interest earned on security

deposit for the FY 2023-24.

22

The major components of the interest expenses of these licensees are as follows:

i) Interest on Capital Loan

TPCODL has estimated the interest on long term debt as Rs.46.61 Cr. Accordingly,

TPNODL has estimated the interest on long term debt as Rs.39.44 Cr. TPWODL has

estimated the interest on long term debt as Rs.58.32Cr. TPSODL has estimated the

interest on long term debt as Rs.28.34 Cr.

ii) Interest on Working Capital

As per the Wheeling and RST Regulations 2022, the components for interest on

Working capital includes O&M for 1 month, Spares 20% of R&M of 1 month, 1month

power purchase cost. The licensees have considered the rate of interest for working

capital as SBI base rate plus 300 basis points. Accordingly, TPCODL, TPNODL,

TPWODL and TPSODL have projected the interest on working capital as Rs.46.87Cr.,

Rs.35.22 Cr., Rs.58.95 Cr. and Rs.20.27 Cr. for FY 2023-24 respectively.

iii) Interest earned on Security Deposit (SD)

TPCODL, TPSODL, TPNODL and TPWODL have projected the interest on SD as

Rs.65.56 Cr., Rs.18.13Cr., Rs.36.03 Cr., and Rs.46.75Cr. for FY 2023-24 respectively.

h) Non-Tariff Income

TPCODL, TPNODL, TPWODL and TPSODL have proposed non-tariff income for FY

2023-24 to the tune of Rs.109.56 Cr, Rs.178.45Cr, Rs.289.33 Cr and Rs.55.65Cr

respectively from the wheeling business and retail supply business which is mainly

through receipts of licensee from meter rent, service connection charges, reconnection

charges, Over Drawl Payment (ODP), Delayed Payment Surcharge (DPS), rebate on

power purchase, interest on Fixed Deposit (FD) etc.

i) Return on Equity and Tax on Income

TPCODL has projected the RoE of Rs.98.75 Cr. and tax on Income of Rs. 33.21 Cr. for

FY 23-24. TPWODL has projected the RoE of Rs.109.44 Cr and tax on Income of Rs.

36.81 Cr. for FY 23-24. TPNODL has projected the RoE of Rs.79.42Cr and tax on

Income of Rs. 26.71Cr. for FY 23-24. TPSODL has projected the RoE of Rs. 54.14Cr

for FY 23-24.

18. Revenue at Existing Tariff

23

The Licensees have estimated the expected revenue from sale of power by considering

the sales projected for FY 2023-24 and by applying various components of existing

tariffs. The total revenue based on the existing tariffs applicable for the projected sales

is estimated at Rs.5144Cr by TPCODL, Rs.3503.14 Cr by TPNODL, Rs.6171.82 Cr by

TPWODL, Rs.1985.71 Cr by TPSODL.

19. Summary of Annual Revenue Requirement and Revenue Gap

The proposed revenue requirement and expected revenue of DISCOMs have been

summarized below:

Table – 12

Proposed Revenue Requirement of DISCOMs for the FY2023-24(Rs in Cr.)

Particulars

TPCODL TPNODL

TPWODL TPSODL Total

Total Power Purchase,

Transmission & SLDC

3610.3 2604.23 5100.06 1219.9 12534.49

Total Operation &

Maintenance and Other Cost

1574.32 1153.95 1545.95 1071.42 5345.64

Return on Equity

98.75

79.42

109.44

54.14

341.75

Tax on ROE

33.21

26.71

36.81

96.73

Total Distribution Cost (A)

5316.58

3864.31

6792.26

2345.46

18318.61

Total Special Appropriation

(B)

0 21.48 (730.99) 0 (709.51)

Total expenditure including

special appropriation (A+B)

5316.58 3885.79 6061.27 2345.46 17609.1

Less: Miscellaneous Receipt

109.56

178.44

289.33

55.57

632.9

Total Revenue Requirement

5207.02

3707.34

5771.94

2289.89

16976.19

Expected Revenue(Full year )

5144

3503.14

6171.82

1

985.71

16804.67

GAP at existing (+/-)

(63.02)

(204.20)

399.88

(304.18)

(171.52)

20. Truing Up of expenses for the FY 2020-21 and the FY 2021-22

TPSODL, TPCODL, TPWODL & TPNODL have submitted their true-up expenses for

the FY 2020-21 & FY 2021-22 as provided in the table below:

Table - 13

DISCOM Truing Up requirement Amount in Cr

TPSODL

FY 2020

-

21 ( 3 months)

FY

2021

-

22

Surplus/(Gap)

16.59

4.47

TPCODL

FY 2020

-

21 (10 months)

FY 2021

-

22

Surplus/(Gap)

( 92.89 )

( 213.45)

TPWODL

FY 2020

-

21

(3 months)

FY

2021

-

22

Surplus/(Gap)

29

.52

506.78

TPNODL

FY 2020

-

21

FY 2021

-

22

Surplus/(Gap)

(47.22)

21. Tariff Proposals and Rationalization Measures:

24

The licensees have proposed some tariff rationalization measures to improve the

revenue and recovery the cost of supply. The brief details of their proposal are as under:

(a) Special tariff for drawal of RE power at premium rate (TPNODL,

TPWODL)

TPNODL and TPWODL have submitted that the special green tariff approved by the

Commission for drawal of renewable power by industry at the premium rate i.e. 50

paisa per unit over and above the tariff applicable for that category of consumer has not

attracted many consumers to opt for green energy. The licensees, therefore, propose to

reduce the premium to 25 paisa per unit. The licensees have also proposed methodology

for issuance of Green power certificates to the end users opting for Green Power. Apart

from the green tariff revision,

The Commission had launched premium rate for RE power. Even though provision for

CGP industries was created for fulfilment of 100% of its requirement from renewable

sources is the hurdle. DISCOM power is costlier than their own generation in addition

to that levy of premium rate of 50 paise is on higher side. Therefore, the licensee has

requested the Commission to reduce the premium from 50 paisa to 25 paisa per unit.

Further, certification by DISCOM is another concern. GRIDCO is the obligated entity

on behalf of DISCOM for fulfilment of RE requirement, unless GRIDCO passes

on/allocates RE to DISCOM, it is not possible for DISCOM to provide required

certificate. The licensee has proposed the allocation of RE power across DISCOMs at

GRIDCO level. If Commission permits allocation of RE availability to all the licensees

then DISCOM can provide certificate to the consumer willing to pay premium tariff for

“Green Energy” without recurring consent/approval from GRIDCO Therefore, if RE

power can be assigned (through certification) for industries opting to draw with

premium special rate then it will be a win-win situation for the industries as well as for

other stake holders. The premium price shall be added to the bill. The industry has to

opt in advance for booking of quantum. The licensees propose a premium charge of 25

paise per unit over and above normal charges.

(b) Levy of Cyclone Resilient Network Cess (TPCODL)

Odisha is extremely vulnerable to cyclones with increasing frequency of occurrences.

To restore the system after cyclone, the state government and central government do

extend support to the licensees based on the impact of cyclone. However, the Licensee

25

is of the view to maintain some inventory in order to timely restore the system and

accordingly the petition was also submitted. Further licensee has proposed to levy a

Cess of 2 paisa per unit to all consumers except BPL category to support the DISCOMs

to build inventory so that mitigation / emergency restoration activities can be taken up

faster to tackle such events.

(c) Creation of disaster resilient Corpus Fund

The Licensees i.e. TPNODL & TPWODL have proposed to charge Rs. 2 per month per

consumer to create a corpus fund for meeting the immediate system restoration works

post cyclones.

(d) Amendment to the ToD tariff (TPCODL)

The licensees have observed that there are two peaks in summer and winter at different

times during the day and they have submitted the 15 minutes’ demand profile. At

present the ToD tariff discount of Rs 0.20 per units is offered for the time slot between

10 pm to 6 am to three phase consumers. In view of changing demand licensee has

proposed to change the off-peak period as 1.00 to 6.00 hrs and 16.30 to 18.00 hrs

during summer months. Similarly, they proposed the off-peak period of 00 hrs to 5.00

hrs for winter months for the purpose of extending discounted tariff.

(e) Continuity of Special tariff for Existing industries having CGP if assured

80% LF of existing CD (TPNODL)

Regarding the above matter, TPNODL has submitted that a special mechanism for sale

of surplus power of GRIDCO through tripartite agreement was approved by

Commission as per para 370 of BST order FY 2022-23 & clause (viii) Annexure-B of

RST order. However, in absence of firm power GRIDCO and DISCOMs filed a

separate petition (Case no. 25 of 2022) for approval of price till firm power is available

with GRIDCO. Commission vide order dt.18th May 22, has approved a special price of

Rs.4.75 per kVAh. GRIDCO has to be paid @ Rs.4.26 per kwh for the power consumed

beyond 80% of CD and OPTCL is entitled for 28 paise as transmission charges.

Balance amount is DISCOM share. The intention of such scheme was to sale the

surplus power of the state to the industries inside the state. As a result, industries can

get cheaper/competitive power and may opt to close their CGP or may avoid

undertaking open access of power. The licensee proposed to continue the scheme in the

26

ensuing year also with bucket filling method. In addition, they proposed that an industry

availing this benefit shall not be permitted to avail benefit of another scheme.

Similarly, as per the submission of TPWODL, in FY 2022-23, industry having CGP

with CD up to 20MW willing to avail power from DISCOMs up to double the CD were

allowed to draw power without payment of overdrawal penalty provided they need to

maintain more than 80% LF. Seeing good response, licensee proposed to continue this

benefit for FY 23-24. Industries availing this benefit shall not be permitted to avail

benefit under other scheme. Continuity of Special tariff for Existing industries having

CGP with CD >20 MW with minimum offtake 80% of existing CD (TPWODL) for FY

2022-23, industry having CGP willing to avail power from DISCOMs and operating at

load factor more than 80% were allowed to draw power at the rate not less than

Rs.4.30/kVAh for all incremental energy drawal above 80% load factor without any

overdrawl penalty has been proposed. Licensee requested to continue this scheme for

the ensuing year with bucket filling method. In addition to this an industry availing this

benefit shall not be permitted to avail benefit of another scheme.

(f) Billing with Defective Meter (TPNODL, TPWODL):

As per OERC Distribution (Conditions of Supply) Code, 2019, the licensee is permitted

to raise provisional bill for maximum upto three months and during this time the

defective meter has to be replaced with new meter. Thereafter, the provisional bill so

raised shall be revised considering actual meter reading for consecutive six billing

cycle. Further as per OERC Distribution (Conditions of Supply) Code 2019, the billing

is to be done on the basis of average meter reading of past three billing cycles

immediately preceding the meter being found / reported defective. The provisional bill

is required to be revised as per the average of six consecutive billing after the new

meter is installed. Licensees face issues that the consumers are not paying even the

actual bill after replacement of defective meters unless the bill is revised. Further the

consumers are also controlling the consumptions after the installation of new meter. To

improve the collection efficiency licensee also cannot wait for six months. Licensee has

requested for the practice direction for the same in the RST order.

With this mechanism the licensee is facing the following difficulties:

27

a) Consumers are not paying current bill even after replacement of defective meter

unless the bill is revised. The licensee is helpless, as they have to wait for six

consecutive billing cycles for the bill to correct and are not able to release bills.

b) In many cases, consumers are desiring to revise the bill considering past actual

consumption in corresponding period, however, this is not permitted under the

Regulation.

c) Some are insisting for bill revision considering actual metering after one

month’s consumption.

d) Most of the consumers are trying to control the consumption and are tempted to

use through other means with an intention to reduce six month’s average billing

even though they have actually used more and more energy during the meter

defective period.

Licensee has requested the Commission to consider past assessment based on the first

full month’s consumption after the replacement of the meter and issue the direction in

the RST order FY 2023-24. The consumption of subsequent months till 6th month can

be used for correction/ adjustments to the assessment amount which was initially done

basing on first full month’s consumption. The differential amount can be billed to the

consumer at the end of 6 month’s post meter replacement.

(g) Revision of meter rent for Smart Meter Connections (TPCODL)

At present Rs.60 per month and Rs. 150 per month of meter rent for single and three

phase smart energy meters is in force. CEA and MOP have directed to implement smart

meters for all consumers by 2025. Considering the present cost of Rs. 5200/- for single

phase smart meter it is not possible to recover the meter cost at the present meter rent.

Accordingly, the licensee has proposed to revise the meter rent to Rs. 80 per month to

be recovered over a period of 90 months. Licensee has also requested to specify pre-

paid smart meters for all the new connections having consumption above 100 units per

month.

(h) Full recovery of meter rent (TPCODL and TPSODL)

In order to ensure replacement of existing meters by prepaid smart energy meters, the

licensee has requested the Commission to permit recovery of full cost. The cost of

single and three phase meters discovered through competitive bidding by TPSODL is of

Rs. 5197/- and Rs. 8564/- TPSODL proposed the revised meter rent of Rs 84/- and

28

Rs139/- for single and three phase smart meters to be recovered in 7 years or

alternatively Rs. 111/- per month to be recovered over the period of 5 years.

(i) Provision regarding Industries owning Generating Station and CPP

availing Emergency Supply only (TPCODL)

Industries owning CGP consume power for short period with very high demand leading

to increase in SMD of the licensees. In order to avoid such situations, the licensee has

proposed to restrict the drawl at 10% LF or 100% of the highest capacity of generation

unit. In case due to such drawals, if SMD is breached due to overdrawal, then penalty

on excess demand of 10% of the highest generation unit shall be charged to the

consumer at the same rate applicable for the HT and EHT consumers.

(j) Proposal for considering Contract Demand in case of conversion of

connection from Emergency Supply into two-part tariff after continuous

violation for 3 months (TPCODL)

In case of conversion from Emergency Supply to two-part tariff in the event of

continuous violation for 3 months, the licensee has proposed to levy Contract Demand

at 10% of the highest generation unit’s capacity or as per 80% CD or MD whichever is

higher and restricting the consumption of electricity upto 10% of highest generation

capacity.

(k) LT tariff for Consumers with CD<=70kVA (TPCODL)

The licensee has submitted that the consumers, who would have been normally supplied

on LT (i.e. upto 70 kVA), are supplied in HT due to non-availability of as LT supply

and they are billed at HT tariffs. In such cases, the transformer loss is passed on to LT

consumers due to HT metering and this leads to grievances. Therefore, TPCODL

proposes that all consumers with CD<=70 kVA, shall be billed on LT tariff irrespective

of supply voltage and category.

(l) Overdrawl penalty & Demand Charge for all consumers with CD>=110

kVA (TPCODL)

Licensee has proposed to levy overdrawl penalty and the demand charge principle of

80% of CD or MD whichever is higher to LT consumers with CD>=110 kVA.

29

(m) Need for Separate Tariff Category for HT Public lighting (TPCODL)

Public lighting tariff category is available only for LT supply. However, some of the

public lighting connections are provided supply through HT and Licensee has proposed

to have separate HT Public Lighting supply category for such consumers.

(n) Revision of Reconnection Charges with penalty clause (TPCODL,

TPNODL and TPWODL)

Licensees have submitted that the reconnection charges are constant for quite long time

and there is need for upward revision in the reconnection charges considering the rising

costs. further, licensee has proposed double reconnection charges for consumers having

repeated reconnections to avoid such reconnections. Present and proposed charges are

as follows:

Table - 14

Prior to 1

st

April 2012

Continuing since

1

st

April 2012

Proposed

Reconnection Charges

LT Single Phase Domestic

Consumer

Rs.75/- Rs.150/- Rs.300/-

LT Single Phase other

consumer

Rs 200/- Rs.400/- Rs 800/-

LT 3 Phase consumers

Rs.300/

-

Rs.600/

-

Rs.1200/

-

All HT & EHT consumers

Rs.1500/

-

Rs.3000/

-

Rs.6000/

-

(o) Creation of Energy Police Station (TPCODL and TPWODL)

In past during 2008, the State Government had taken anti-theft initiatives and created

29 numbers of Energy Police Stations across all the DSICOMs. Effectiveness of EPS in

the past was not encouraging at that point of time due to nos of factors. Loss Reduction

being one of the key objectives, TPCODL and TPWODL proposed to setup at least 5

EPS each, one in each circles with around 124 staffs. With the change in management

and control of the DISCOMs, re-establishment of Energy Police Stations will definitely

have positive impact in enforcing discipline and accelerating Loss Reduction.

Accordingly, licensee has requested for additional A&G for EPS.

(p) Billing of Public Lighting (TPCODL)

Earlier for many reasons the public lighting connections were not metered. Licensee

proposed to consider 11 hours of supply throughout the year for calculation of average

use of electricity for billing purpose. The Licensee has proposed mandatory installation

of energy meters for new public lighting connections.

30

(q) Demand Charges to HT medium category consumers (TPNODL,

TPCODL)

The HT medium category consumers are now availing supply at demand charges of Rs

150 per kVA as against the GP and SPP category which are paying Rs 250 per kVA as

demand charges. Due to the differential demand charges, consumers under HT medium

category just below 110kVA are always trying to avail demand benefit even though

their actual connected load is more than 110kVA and above. To curb such type of

disparity in demand charges the licensee proposed to revise to Rs 250 per kVA for HT

medium category consumers.

(r) MMFC for LT Category Consumer (TPNODL)

Presently LT category of consumers, except Large PWWs>110kVA & Specified Public

Purposes>110kVA and above are paying Monthly Minimum Fixed Charges (MMFC)

on the basis of their connected load. MMFC for all the LT category of consumers is

proposed to be rationalized with single rate for 1st kW or part thereof as well as

additional kW or part thereof. At present, a Small industry with 10 kW load is paying

Rs.80 for 1st kW and for balance 9kW is paying @ Rs. 35 per kW (Rs.35X9

kW=Rs.315). So the demand charges paid are Rs.395/- instead of Rs.800/- (i.e. Rs.80 X

10kW), similarly in case of LT medium industry it is Rs.100/- for 1st kW or part

thereof and for additional kW it is only Rs.80/- per kW. The minimum load for LT

medium category is >= 22 kVA. Licensee has proposed to levy the MMFC for all the

LT category of consumers with single rate for 1st kW or part thereof as well as

additional kW or part thereof.

(s) Increase in rebate from 3% to 4% for LT Domestic, LT GP single phase &

Single phase irrigation consumers (TPNODL, TPWODL)

The Commission had extended additional rebate of 3% towards digital payment for LT

single phase Domestic & GP category of consumers since FY 2022-23. This is yielding

very good results and the cost of collection is decreasing significantly. Hence, licensee

requested for further increase in the digital rebate from 3% to 4% which would further

motivate digital payment and will help to do away with the culture of door to door

collection.

31

(t) Incremental digital rebate to rural consumers (TPNODL)

The introduction of multiple initiatives of digital collection like My Tata Power App,

Airtel Payment Bank tie-up, Spice Money tie up, tie up with SBI, BBPS & other UPI

facilities, there has been a significant boost in rural digital payments. Hence, Licensee

proposed to extend additional 3% rebate for rural LT domestic consumers for digital

payment.

(u) Considering Actual average LF for the category during assessment of

unauthorized drawl (TPNODL)

As per OERC Supply Code, 2019, the assessment of unauthorized consumption is done

as LxHxF.

Where L=Connected load found in the consumer premises during the course of

inspection in kW: H=No. of hours of the period of assessment, F=Load factor as has

been prescribed for collection of SD in Regulation 52.

The load factor prescribed by the OERC in Supply Code for various categories is found

to be very less which does not reflect the actual probable usage of the various

equipment which results in negative assessment thereby not providing the penal

environment to discourage unauthorized drawls. Hence, it is requested to allow for

taking into consideration the load factor for assessment as average actual load factor for

Domestic category or may consider approving 20% LF for domestic, 25% LF for

commercial and industrial and 50% LF for continuous process industries over a 24

hours’ period.

(v) Levy of CSS on RE power (TPNODL, TPWODL)

The Commission had introduced levy of CSS on RE power with effect from FY 2022-

23. Accordingly, the consumers availing renewable power through open access shall

have to pay the transmission charge, wheeling charge and cross subsidy surcharge as

applicable to consumers availing conventional power. This CSS amount collected by

licensee has helped the licensee to accommodate the BST increase and ultimately has

aided towards non-increase in RST. Hence, the licensee has requested for continuation

of levy of CSS and wheeling charges on RE power for FY 2023-24.

32

(w) Special tariff for existing industries who have no CGP for drawl of

additional power beyond CD of 10 MVA (TPNODL)

After announcement of above special tariff scheme for the industry, few of the other

industries those who have no CGP has started approaching for similar type of scheme

for them so that they can utilize their existing installed capacity in full, beyond CD or

may add capacity in the existing premises beyond CD if permitted. In line with special

tariff for industry having CGP, a special tariff for non CGP industries connected in 33

kV level or above is proposed by licensee. In order to avail special tariff under the

scheme, the licensee proposes that the consumer need to maintain 85% LF during the

billing period, overdrawal upto a limit of 15000 KVA is permissible and there will be

no demand charge for consumption over and above 85% LF. Sourcing power through

Open Access and Load reduction to consumer is not permitted.

(x) Special tariff for Industries for temporary business requirement (TPNODL

and TPCODL)

The temporary supply is permitted to meet temporary needs on special occasions for a

period not exceeding six months at 10% higher energy charges. Under TPNODL area,

there are around 21 industries having their own CGPs. Some of them have single unit of

generation and some are having multiple units with different capacity. To maintain the

generating unit’s annual maintenance and some of the other industries are in need of

power intermittently to meet seasonal requirements and for such temporary outages of

their CGP and short-term business need, they do approach DISCOM for supply of

power for couple of months. In view of the above, TPNODL has proposed temporary

additional load beyond CD for a short period of maximum 3 months and proposed the

industry has to bear 10% higher charges on both normal Demand and energy

component. Such additional consumption will contribute towards revenue enhancement

and will definitely help to protect risk of tariff enhancement.

(y) Revision of Meter Rent if not permitted under CAPEX (TPNODL,

TPWODL)

Licensee has proposed to revise meter rent as per following along with change in

recovery period from 60 to 90 months. Licensee further proposed the entire new

connection as well as replacement of defective meter to be permitted through Smart

Meters only.

33

Table - 15

Sl. No. Monthly recovery of meter cost Existing Proposed

1

Single Phase AMR/AMI Compliant Smart meter

60

80

(z) Discount to Domestic Rural Consumers (TPWODL)

Rural LT domestic consumers were offered discount @ 5 paise per unit in addition to

existing prompt payment rebate who draw their power through correct meter and pay

the bill in time. Licensee has requested to increase such rebate and proposed to offer

@10 paisa per unit for the next year.

(aa) Pay Digitally and get refund of six-month electricity bill (TPWODL)

To promote more digitalization, the licensee is proposing a new mechanism which not

only helps in improving digital collection but will insure the consumer with risk of any

mishap. For this purpose, no such separate premium is leviable to consumer nor the

license shall incur any cost for insurance premium. The proposed scheme is as follows:

o All the single-phase Domestic including Kutirjyoti, sing phase GP & single

phase Irrigation and Agriculture category of consumers are eligible under this

scheme.

o The consumer has to pay its monthly energy bill digitally /online mode regularly

during the financial year.

o Existing consumers those who are paying digitally/online mode are also eligible

under this insurance scheme.

o During the financial year, in case of death of the consumer due to any reason

then last six months electricity bill as paid shall be refunded to the family

members in whose name the electrical connection is transferred. The amount of

refund shall be credited to the consumer account in whose name it is transferred.

o The family member of the deceased consumer in whose name the electrical

connection was continuing has to produce the death certificate along with

application for name change/transfer of connection.

o The beneficiary in whose name the connection would be transferred needs to

undertake payment of monthly electricity bills in future digitally/online mode

only.

34

(bb) Inter DISCOM Feed extension to Railway (TPWODL)

Benefit of feed extension is being allowed if the recorded MD on one traction

Substation exceeds due to its feed extension over another Traction Sub-Station (TSS) of

same DISCOM area. However, when feed of one TSS of a DISCOM is extended over

another TSS of other DISCOM then the benefit is not given. The Railway’s connection

is at 132 kV level and above that voltage it is under OPTCL jurisdiction. MD exceeds

due to fault on OPTCL network. Licensee has submitted to provide necessary

guidelines in this regard to extend such facility to Indian Railway who is a prime

customer of all the DISCOMs.

(cc) Creation of Category for Mega lift points under EHT (TPWODL)

The licensee is having a consumer under mega lift with CD of 13500 kVA and availing

power supply with 132kV level. As there is no such tariff category under EHT for such

supply, TPWODL is billing them with HT irrigation category where demand charges &

energy charges are very nominal. Licensee requested for separate category under EHT

with demand charges of Rs.250 per kVA and energy charges under graded slab method.

(dd) Special tariff to Steel Industry (TPWODL)

HT industrial consumers (Steel Plant) having Contract Demand (CD) of 1 MVA and

above were offered a rebate on energy charge on achieving the load factor through RST

order for FY 2022-23. The benefit was specifically for industries who are not having

their own CGP. The intention of not extending this benefit to CGP industries is due to

availability of own generation where they prefer to keep lower CD with the DISCOMs

and achieve required LF to avail this benefit. Separate benefit to industries with CGP

was extended wherein industry can draw up to double their CD with flat tariff of @

4.30 per unit for additional drawal up to CD of 20 MW without levy of any overdrawal

penalty. If both the incentive based tariff is made available to Steel industry as well as

CGP, then the industries power purchase cost would be less than the BST of the

DISCOM (Additional power @ Rs.4.30 per unit minus steel industry discount 20% on

entire power which comes more than 1 Rupee i.e. Less than Rs.3.30 per unit). In view

of the above, licensee has requested for more clarity.

35

(ee) Special tariff for industries those who have closed their units if

reopen/starts (TPWODL)

There are number of industries who have closed their units since long which is wasting

the resources and also not providing employment. Support to such closed industries will

generate employment and benefits to state. Hence, licensee proposed allowing support

to closed industries to restart their operation by extending 20% incentive on entire

consumption for LF above 60%. Proposed incentive will be over and above all other

existing incentives in the tariff.

(ff) Summation metering at OPTCL end & replacement of NON-DLMS meters

(TPWODL)

TPWODL is sourcing it’s entire power from GRIDCO through OPTCL network assets

at 132 kV level & above. Presently there are 182 interconnection points located across

the licensee area, where OPTCL is having metering unit & on the basis of same both

OPTCL & GRIDCO are raising their monthly bills. Licensee observed that in most of

the locations the available meters are Apex 100 with non DLMS and some are Apex

100 type with DLMS specifications. In addition to that, in some of the locations EHT

consumers like Rourkela Steel Plant (RSP) is connected with multiple feeders where

one feeder is with non-DLMS meter and in other one it is DLMS type, so in every

month for energy accounting DISCOM is facing difficulty in integrating all the required

parameters for billing purposes. Therefore, licensee has requested the Commission to

direct OPTCL to replace the non-DLMS meters with DLMS type and fixing of

summation meters where energy accounting is measured through multiple meters.

(gg) Charges for line extension to LT single phase connection up to 5 kW

(TPWODL)

The LT extension charges were increased from Rs.5000 to Rs.8000 per span in the RST

order dt.24.03.2022. The licensee has submitted that the cost estimates for 1 phase LT

extension be permitted as Rs.9300 per span and Rs.12500 per span for 3 phase as the

actual cost is much higher in many cases. Even if for single pole or two poles cases the

transportation, loading & unloading, erection cost is much higher. The licensee has also

made a separate request to allow enhancement of LT extension cost beyond Rs.8000

per span. However, the Commission had allowed the excess cost over permitted amount

to be booked under load growth keeping overall CAPEX approval intact for FY 21-22

36

& FY 22-23. Licensee has submitted to extend this for FY 2023-24. Licensee has

further proposed the maximum span limit of 6 i.e. 180 meters and for LT extension is

beyond 180 meters, the licensee has proposed the beneficiary to opt deposit work

mechanism.

Assessment in case of Theft of energy (TPWODL)

Even though separate guidelines for assessment of unauthorized use are provided in the

regulation, however, as per field condition applicability of the provision while doing the

assessment it is not possible to adhere. So for lucidity, licensee has submitted that in

case of consumer found using electricity unauthorized way then in such case the

assessment has to be made with LDF basis. In that case, Domestic LF of 30%, GP of

60% and in case of continuous process industries, 100% LF may be used for

assessment.

(hh) Special Scheme for Alumina Melting Unit (TPWODL)

One of the industry namely M/s. Romco Aluminates Pvt. Ltd. has filed a petition before

Hon’ble Commission to extend load factor benefit to such industries as like of Steel

Industries, which is yet to be registered. It is the contention of the industry they do have

electric arc furnace and using electricity for manufacturing white fused alumina. The

Commission has approved the load factor benefit to steel industries connected at 33kV

level having with load more than 1 MVA, who are using induction furnace and having

no CGP. As the scheme is purely for steel industries, the licensee is not extending this

scheme to Ferro Alloy industries using arc furnace. So, licensee has requested the

Commission for necessary directions.

C. OBJECTIONS, QUERIES RAISED DURING THE HEARING & THEIR

REJOINDERS BY THE PETITIONER (PARA 22 TO 69)

22. Public hearing on ARR and Tariff application of all the DISCOMs for the FY 2023-24

was initiated with PowerPoint Presentation by DISCOMs followed by presentation by

World Institute of Sustainable Energy (WISE), Pune who was the consumer Counsel

appointed by the Commission. The Consumer Counsel presented the summary of the

submissions made by the licensees and the analysis of the ARR with observations.

Consumer associations, individuals in their written submission had raised issues

contesting the proposal of the DISCOMs. The Commission has considered all the issues

raised by the participants in their written as well as oral submissions made in the public

37

hearing. Many objections were found common in nature. These are summarized and

addressed as follows:

23. Incomplete ARR Filings and information disclosures

One of the objectors pointed out that the OERC has prescribed Technical formats T1 to

T9, Financial Formats F-1 to F-29 and Commercial / Performance formats P-1 to P-17

for submission of required data along with the ARR petition. However, none of the

licensees had submitted the complete and required information along with the petition

on the website and without the availability of complete information the stakeholders

can not submit their comments. The objector requested OERC to direct the Registry for

proper scrutiny of the documents filed by the petitioners before accepting the and

registering the cases for admission and hearing. One of the objectors requested for

disclosure of rebate, DPS, wheeling charges collected, energy wheeled by consumers

through inter and intra Open Access, arrears collected by DISCOMs etc.

Rejoinder of the Licensee

TPCODL has submitted that, after commencement of its operation on 1st June 2022, it

has initiated the process of automation of various manual process and other IT

initiatives like SAP. The transition from manual to IT based system has taken some

time to stabilize as it entailed creation of infrastructure, re-engineering of processes,

blue-printing, implementation, testing, training etc. Because of the above factors, some

data were not available at the time of submission of our ARR petition as a result some

forms could not be submitted. However, the balance forms have been submitted to the

Commission on 17th Feb 2022.

TPNODL has submitted that under the provisions of the New Tariff Regulations, 2022

the Licensee should be allowed to furnish such information as and when required by the

Commission to access such calculations for determining the tariff. As such, the licensee

abides by the directions of the Commission in true letter and spirit.

24. Truing up of ARR of erstwhile DISCOMs

One of the objectors pointed out that the erstwhile DISCOMs had huge surplus revenue

as revealed from the last tariff proceedings. The excess revenue was due to the excess

tariff recovery by the erstwhile DISCOM over and above the notified tariff and non-

utilization of depreciation. The trueing up exercise was not carried out since FY 2014.

As per regulation the DISCOMs have to file true-up petition by 1

st

week of October

38

and Commission shall pass the true up order by 1

st

week of November and the

DISCOM shall consider the true-up order while filing the petition for ensuing FY. The

objector requested Hon. Commission to complete the true-up exercise and consider the

cash surplus available with DISCOMs and pass on the same to consumers.

Rejoinder of the Licensee

TPSODL has submitted that they have filed its true up petition for FY 2020-21 (3

Months) and FY 2021-22 and the estimated surplus for FY 2022-23 is based on the

performance for H1 of FY 2022-23. Though there was surplus in 2020-21 and 2021-22,

however, there will be deficit in FY 2022-23 and 2023-24.

TPCODL has submitted that TPCODL has not been transferred any surplus as has been

claimed by the objector and consequently they are unable to comment upon the same

other than the fact that CESU’s audited balance sheet as on 31.05.2020 (prior to

Effective Date) reflects accumulated loss.

TPNODL and TPWODL have submitted that as per provisions of OERC (Conduct of

Business) Regulations, 2004 and OERC (Terms and Conditions of determination

wheeling tariff and Retail Supply Tariff) Regulations, 2014 had filed the Petition for

Revised Truing Up of FY 2020-21 (3 months), Truing up of FY 2021-22 along with

original ARR for FY 2023-24 on 30.11.2022. However, the Commission directed the

DISCOMs to file the revised ARR for FY 2023-24 within 15 days from the date of the

Gazette Notification of the New Tariff. Accordingly, the licensee in accordance to the

new Tariff Regulations, 2022 had only filed the revised ARR for FY 2023-24. The

licensee has submitted that it is well guided and follows the provisions of the

Regulations and Codes of the Commission.

25. Non-Constitution of Commission

One of the objectors pointed out that the Chairman of the Commission has not yet been

appointed for more than 12 months which is inconsistent with the provisions of the

Electricity Act, 2003 and hence the last year’s tariff may be carried forward, till the

appointment of regular Chairperson and initiate fresh hearings after appointment of

Chairperson of the Commission.

Rejoinder of the Licensee

The licensee has submitted that the objection raised is beyond the scope of present

proceedings.

39

26. Auctioning of Distribution Utilities in favor of Tata Power:

One of the objectors raised the issue of sale verses auctioning of Utilities at throwaway

price. The objector pointed out that in case of sale it becomes necessary to recast the

Balance Sheet of the Utility, basing on which the Equity is determined for sale purposes

which is the prudent practice. Act empowers sale of Utility; however, the utilities were

auctioned by fixing reserve price. The net worth of the four utilities of Odisha inclusive

of Govt. Grant Assets was not less than Rs 10,000 Cr.

Rejoinder of the Licensee

No specific reply has been filed by the DISCOMs.

27. Cash basis of regulatory accounts vis a vis Accrual basis accounting

One of the objectors pointed out that the cash basis accounting is more real than the

accrual basis accounting. The regulatory accounts of SERC primarily consider cash

basis accounting for the purpose of pass out of the ARR cost because of the mandate

stipulated in the Electricity Act, 2003. The objector has urged OERC to opt the cash

basis accounting.

Rejoinder of the Licensee

TPCODL has submitted that the audited Financial Statements have been prepared in

accordance with Indian Accounting Standards as notified under the Companies (Indian

Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the

Companies Act, 2013 (as amended from time to time) and it includes expenditure on

accrual basis.

TPNODL and TPWODL have submitted that the licensee has been maintaining the

account as per provisions specified in Regulation 1.2.1 (30) of the OERC (Terms and

Conditions of Wheeling and Retail Supply Tariff) Regulations, 2022 and in accordance

with Companies Act, 2013.

28. Power cuts and unreliable Power supply

One of the objectors argued that the state had experienced huge power cuts and

unreliable power supply during extreme summer. Rural consumers also experience

huge pain in acute summer. Increased power cut was due to short approval of power

demand for the state. Also, the poor R&M, increased gap between peak and off-peak

demands, unplanned annual overhauling of Generators and ineffectiveness of GRIDCO

40

are some of the reasons for increased power cuts. As the consumers are paying full cost

for the power supply, they should not be prevented from getting reliable power supply.

Remedial measures should be taken to ensure reliable power supply to all consumers.

Rejoinder of the Licensee

TPNODL & TPWODL submits that the licensees have initiated number of activities for

reduction of interruption, break down etc. during last two years. Since FY 2021-22,

TPNODL has attained many achievements such as establishment of 24x7 &

Operational Power System Control Centre (PSCC) and provided mobile applications to

all 33/11KV Primary Sub-Station to collect the operational information, Planned

Outages monitoring and information pass on to consumers regarding the outages in

their area before 48 hrs.

TPCODL has submitted that there is no intentional power cut by TPCODL except the

breakdowns and outage taken for the purpose of preventive maintenance. TPCODL has

been providing steady and reliable power supply to its customers across its

geographical area during Current Financial Year. TPCODL has largely focused on

preventive maintenance of its existing network and assets and hence there were large

scale maintenance activities on the 11 & 33 KV Feeders are being carried out in terms

of “tree trimming” / damaged pole upkeep / low sag conductor restringing/ jumper

repairing etc to keep network equipment in good and healthy condition. TPCODL has

further submitted that, the distribution system reliability is measured by some of the

indices i.e. SAIDI and SAIFI. The above indices for the period FY 2021-22 and 9

months’ period of FY 2022-23 are: SAIDI (hrs) 155 and 114 and SAIFI (nos.) are 377

and 282 respectively and the report shows considerable reduction in number of failures

/outages. TPCODL submitted that in case of planned outages, consumers are informed

beforehand and in case of every major breakdown, the same is communicated to our

centralized Call Centre so that consumers may be benefitted.

29. Energy and Demand Forecast

One of the objectors submitted that the energy forecasted by all the four DISCOMs

together and that by GRIDCO and OPTCL is different and needs reconciliation. Also

the demand forecasts are different than that of GRIDCO and OPTCL and hence need

reconciliation.

41

Rejoinder of the Licensee

TPNODL has submitted that the licensee forecast demand (SMD - 1396 MVA) based

on the past record and additional load growth in each category and additional load

towards upcoming EHT consumers for FY 2023-24. Whereas, the SMD of the

DISCOM as recorded by GRIDCO is without deducting demand component of open

access drawl by industries.

TPWODL has submitted that the licensee has projected 1850 MVA as SMD for FY

2023-24 considering the average SMD of 1

st

six months of FY 2022-23. The licensee

has submitted that demand projections (SMD) for a year are estimated based on load

mix, consumption pattern and other economic policies. The licensee has submitted that

GRIDCO has projected higher demand for TPWODL than projected by DISCOM.

30. Higher AT&C Losses

The AT&C losses in Odisha DISCOMs are higher than the national average of 20.73%

for FY 2019-20 or higher than the state sector DISCOMs having average AT&C loss of

21.50% or the private sector DISCOMs loss of 7.95%. Further, Commission had also

approved higher losses year on year and the inefficiencies of the DISCOMs are passed

on to the consumers. Objector urged to take pragmatic action to improve the

performance of DISCOMs. Also the targets set for AT&C loss reduction in the vesting

order are very low as compared to the actual performance of the licensee and the

objector requested for review of the AT&C loss targets set under the vesting order.

Rejoinder of the Licensee

TPCODL has submitted that the Commission in its Vesting Order has set the AT&C

loss trajectory for tariff determination till FY 2030 thereby insulating the consumers

from the actual performance of the DISCOM. Against the respondent’s observation that

the higher T&D loss are being approved than actual loss, it is clarified that the approved

T&D loss for FY-21 as considered for Tariff determination was 22.93 % against which

the actual T&D loss was 25.9% (for 12 months) and 24.9% (for 10 months June’20 to

Mar’21). Similarly, for FY -22, the actual T&D loss was 23.69% against the approved

T&D loss of 22.93 % used for tariff determination.

TPWODL submitted that the Commission under the vesting order has already decided

the normative AT&C loss level trajectory till FY 2030-31 for determination of ARR

42

and consequent tariff and hence, the tariff of consumers is not impacted by actual

distribution loss of the licensee.

TPNODL & TPSODL submitted that the actual level of loss of DISCOM would not

affect the consumers at all. The Tariff would be determined by the Commission on the

basis of loss trajectory specified in the bidding document and in the Vesting Order.

Hence the consumers are insulated from the actual loss levels of DISCOMs.

31. Need for reduction of normative HT loss

Some of the objectors pointed out that the normative HT loss level of 8% is being

considered for tariff determination for long period and there is need to revise the same

close to 4% or atleast need to have reducing trajectory instead of present constant 8%.

The licensee is incurring huge CAPEX investment and the same will lead to loss

reduction and hence the HT loss should have reducing targets. One of the objectors

pointed out that the licensee has not yet completed 100% feeder and substation

metering. Without this Energy Audit can’t be completed. Further, without proper

Energy Auditing of losses, the estimated losses projected can’t be accepted.

Rejoinder of the Licensee

Licensee submitted that the T&D loss of 8% is applicable for HT Open Access

Transactions. The estimation of sales by the DISCOM as well as the approval of the

same in the Tariff Order are not based on the HT T&D Loss. Hence the tariff to

consumers are not impacted by the loss levels for HT. TPSODL submitted that the

licensee is in the process of installing the infrastructure for carrying out the Energy

Audit. After installation of the same, the loss level for HT i.e. 33 kV and 11 kV can be

determined and the licensee proposed to complete the infrastructure development

activity to access actual HT loss by end of FY 2023-24.

TPCODL submitted that, they have carried out software based load flow study

(CYMEDist software) for 33KV & 11KV Network and assessment of technical loss in

the network has been done. Based on the assessment, HT loss at 33 KV and 11 KV was

aggregating to around 8.5%. In view of the above, the Commission’s approval of HT

loss to the tune of 8% is reasonable in the current situation.

TPNODL & TPWODL submitted that the Commission in its Tariff Order has approved

the HT loss to the tune of 8% which is justified in the current situation. The licensee

submitted that the work of system strengthening, network augmentation, setting up

43

33/11 kV substations is in progress. The Licensee hopes that in future years the T&D

loss may be reduced taking into account the network situation prevailing at the time.

32. Energy Audit and metering of DTs and Feeders

One of the objector cited RST order 2006-07 wherein the Commission insisted for

consumer-feeder-transformer metering for correct reading of technical losses and

billing to the consumer on the basis of correct meters. The DISCOMs are not

submitting the authenticated data based on the energy audits. The expenditure of energy

audit has gone astray and not served the purpose. The objector further pointed out

regulatory violations by DISCOM.

Rejoinder of the Licensee

TPCODL submitted that, they have established dedicated Energy Audit Group to carry

out Energy Audit Activities. They are strengthening the group by appointing experts

from IT, Finance and Technical departments, which is led by an Energy Manager as per

the guidelines of Bureau of Energy Efficiency (BEE). This group carries out energy

audit and submits the Quarterly & Annual Energy Audit Report to BEE, State

Designated Agency and OERC in the prescribed format as per the guidelines issued by

them from time to time. Further, these reports are verified by an External Third Party

Accredited Energy Auditor as per the guidelines of BEE and PAT regulations.

TPWODL has submitted that the licensee had engaged M/s. Power tech consultant for

conducting third party audit of FY 2021-22 who had completed the audit and provided

the audit report in October’2022. Key findings of the said report have been captured

under Energy Audit details in the ARR. TPWODL management is committed to carry

out the energy auditing activity in scientific and professional manner and in coming

years it will yield result.

33. Compensation for violation of Regulations by DISCOMs w.r.t. Standard of

Performance (SOPs)

One of the objectors pointed out the regulatory provisions framed under section

57,58,59 of the Electricity Act 2003 to protect the interest of the consumers. But till

date not a single consumer could get compensation under SOP though there are various

violations of regulations by DISCOM. Further, the objector requested the Commission

to look into the matter as to why the GRFs are not inclined to award compensation to

affected consumers for violation of SOPs. Further, the objector appealed DISCOM to

44

encourage automatic compensation to consumers against the violation of SOPs and

penalize the field officers for negligence. Quarterly reports of the same should be

submitted to the Commission and made available on website.

Rejoinder of the Licensee

The licensees did not provide specific reply to the objection raised by the objectors.

TPSODL acknowledged the receipt of objections and thanked for bringing to the notice

of TPSODL the issues related to the non-compliance in the area of Energy Bill,

provisional billing and also the difficulties faced in providing power supply to

prospective consumers. In case of disconnection notice, TPSODL submitted that for LT

consumers, TPSODL is providing the Disconnection notice (wherever applicable) with

the next bill. The receipt of the bill (along with the Disconnection notice) serves as an

acknowledgment. Only after such notice (after 15 days), the power supply is

disconnected. TPSODL submitted that as objections raised are not related to the ARR

filings they may not be able to provide a suitable reply in the present submission and

requested the objector to mark the specific cases to Chief Commercial Officer of

TPSODL.

TPCODL submitted that they have carried out SoP Audit for FY 2021-22 through a

third party and submitted the Audit report to the Commission.

34. Consumer Service and Co-ordinating Officers of DISCOMs

One of the objectors submitted that in most of the rural areas, the internet access is not

that good and hence consumers may be permitted the offline power supply application

in local offices till 100% mobile network is ensured in rural areas. The rural consumers

should not be forced to travel to urban areas and incur expenses for submission of

online applications. Further, some of the consumers have complained about very strict

and restricted access to utilities offices for the consumers and they are facing issues in

communicating and getting their problems resolved with the help of senior officials.

The consumers also requested for appropriate dress codes to employees for easy

recognition of staff and the business associates or outsiders. Also, the objectors

requested for disclosure of official phone numbers and email address and areas of work

of key officials on company websites and be displayed at local offices to facilitate the

consumers to approach appropriate staff for resolution of their issues. Licensee were

required to come up with the notification of designated officer for different services and

45

charges after the vesting order. The objectors also proposed that the customer care

phones should be avoided during holidays and lunch hours.

Rejoinder of the Licensee

TPSODL acknowledged the receipt of objections and thanked for bringing to the notice

of the licensee the issues related to the non-compliance in the area of Energy Bill,

provisional billing and also the difficulties faced in providing power supply by

prospective consumers. TPSODL submitted that they have issued identity cards to all

the employees including those who are Business Associates of TPSODL for

identification.

They submitted that as objections raised are not related to the ARR filings they may not

be able to provide a suitable reply in the present submission and requested the objector

to mark the specific cases to Chief Commercial Officer of TPSODL.

35. Issues with regard to Electricity Bill Format with requisite information including

recording of demand for LT Consumers

Some of the objectors pointed out that electricity bill should be in two languages in

Odia and English. The paper quality of electricity bill should be improved so as to

preserve the same for long period. Further, the LT consumer’s electricity bills do not

contain the information related Recorded Demand and the bills are produced by

considering the contract demand for billing purpose. However, the demand charges

should be levied on the basis of recorded demand. The objector pointed out that

licensee is violating the regulations and bills are not generated on the basis of recorded

demand for LT consumers. The objectors further pointed out that, the bills are wrong

and licensee cannot serve disconnection notice based on wrong demands. Some of the

objectors pointed that the bills do not contain the information related to due date for

rebate and the DPS and Rebate be disclosed separately.

Rejoinder of the Licensee

TPSODL submitted that there is technical challenge to issue bills for SBM consumers.

However, such bills may be downloaded from the Website of TPSODL from 31

st

May

2023. Further, in case of estimates, TPSODL is presenting the estimates on the basis of

the situation and providing the required details. In case the Commission has a particular

format, it may direct TPSODL to provide the details of estimates in that format.

46

TPNODL submitted that the Licensee has already taken the necessary steps to provide

the monthly electricity bill both in Odia and English language as per direction of the

Commission. While we appreciate the objectors’ concern, the licensee also in the

process of printing the same in Odia language. The length of the energy bill would be

reduced through involvement of technology in coming years

36. Consumer specific complaints on violation of Regulations by DISCOMs

Some objectors have submitted regarding violation of some specific regulatory

provisions by DISCOMs referring to the GRF orders and the matters pending before the

Hon’ble High Courts. Those matters relate to the claims of infrastructure costs, tariff

categories, LT/HT billing issues, cost of AMR, meter rent and assessment under

Section 126 and Section 135 of the Electricity Act, 2003.

Rejoinder of the Licensee

The DISCOMS submitted that the issues are not related to the present ARR filing and

they requested the objectors to raise the issues at appropriate forum so as to take

appropriate action in this regard.

37. DSM and Consumer Awareness Initiative

One of the objectors submitted that DISCOMs should conduct customer awareness

drives for DSM.

Rejoinder of the Licensee

TPCODL has submitted that they have launched number of programs for the consumers

in collaboration with vendors to purchase energy-efficient appliances such as Air

Conditioners, BLDC fans and energy efficient Motors at a discounted rate and with

extended warranty at consumer’s doorstep. Licensee has signed a MoU with a EESL to

distribute Energy Efficient Products like BLDC Fan, Super Energy Efficient AC and

IE3 Motors. Licensee is also working with ESCO for energy audits and implementation

of projects under revenue sharing model. Licensee has taken a note of suggestion to

launch consumer awareness programs

38. O&M Cost

One of the objectors submitted that O&M is the second largest cost in ARR. Further,

without the knowledge of opening balance as per the cash flow statement the ARR cost

given cannot be trusted and be passed out prudently. The O&M costs projected for

47

ensuing year are high as compared to the actual and the same should not be considered

for projecting the ARR. The licensees have not submitted the cash flow statements. As

per the PFC report the all India state average of O&M cost for state sector DISCOMs is

0.62 Rs/kWh and that of private sector DISCOMs is 0.54 Rs/kWh whereas the Odisha

DISCOM has incurred Rs. 1.06 per kWh. The sharp increase in O&M cost for past,

current and ensuing FY is the inflated cost of O&M.

Rejoinder of the Licensee

TPSODL has submitted that they have commenced operation on 1

st

January 2021 and

FY 2023-24 is the 2

nd

full year of operation after excluding the initial 3 months of

operation in FY 2020-21. During the initial year i.e. FY 2021-22, TPSODL was

establishing the processes and practices and hence the expenditure of FY 2021-22 does

not reflect the stabilized O&M cost and can’t be the base for the future years.

TPCODL has submitted that, the O&M expense for FY 2021-22 are claimed based on

audited Financial Statements which have been prepared in accordance with Indian

Accounting Standards. With specific reference to employee cost, provisions were

majorly created against 7th Pay Arrear, HRA arrear, Performance Pay, etc. which were

paid in subsequent months of FY 22-23. It is pointed out that, the accounts including

the expenditure incurred and provisioned are audited under stringent Accounting

Standards, the True up claim is based on the same which is in line with the requirement

of the Tariff Regulations. The projection of expenditure for FY 2023-24 has been done

prudently based on the extant Regulations and the same has been included in the ARR

filed for FY 2023-24.

In justification of reasons for increase in Employee cost, R&M cost and A&G cost, in

FY 2022-23 compared to FY 2021-22, TPWODL has submitted that FY 2021-22 was

the first year of operation, lots of issues from areas like meter reading, billing,

collection, repair and maintenance of network assets, customer service, civil

maintenance, hiring of employees, creation of different office set up etc. was the major

challenge for the licensee. The ABP was filed in Feb-21 which was being approved in

Oct-21, pending decision of the Commission, TPWODL was conservative in engaging

the AMC contracts, carrying out competitive bidding process for appointment of circle

wise MBC agencies, hiring of employees etc. Now from the current financial year the

costs towards above initiatives has already taken up. Accordingly, the estimated

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expenditure for the current year i.e. FY 2022-23 onwards will obviously be higher and

not unnatural than the costs actually incurred in FY 2021-22.

39. Employee Cost and Recruitment of Staff

Some of the objectors submitted that the employee cost proposed by the licensee is very

high and the estimated cost is more than the Commissions approved cost which should

not be approved without prudent check. Licensees are recruiting employees from other

states and no preference given to locals. The objector requested the information on

number of people recruited after vesting order, executive and non-executives, odia

speaking in both the level etc. The CTC offered to new employees is quite high as

compared to the outsourced employees working earlier and there are wide variations in

salary structures. The non-executive staff retired is not filled through regular posts and

are filled from outsourced employees. One of the objectors requested for grant of

additional non-executive posts for absorption from outsources people. The licensee is

recruiting staff based on the number of employees per consumers served. However, the

licensee is outsourcing lot of activities and the outsource staff should also be considered

while estimating the employees per 1000 consumers served for comparing the national

benchmarks. Apart from the employees per 1000 consumers benchmark carried over

years the actual employees required should go down due to implementation of IT

infrastructure and online payment options in the licensee areas with enabling supporting

mechanisms of rebates for online payment.

Rejoinder of the Licensee

TPWODL submitted that recruitment was prohibited by the Commission in the past for

which no recruitment was made by erstwhile Wesco utility. However, on transfer of

utility to TPWODL as per the vesting order staff deployment plan has been duly

approved. Accordingly, as per provisions in vesting order TPWODL is permitted to

deploy 4209 numbers of staff under different category. As regards FY 2023-24, the

licensee has considered recruitment of 761 nos employee. With a continuous increasing

consumer base and to maintain the ratio of 1.40 employees / 1000 consumers the

recruitment done by the licensee can be justified.

TPNODL submitted that over the decades, there has been no recruitment and only after

obtaining approval of the Commission, the applicant has made a comprehensive

recruitment plan and made recruitments at strategic locations. Further, the employee

49

cost over the years should have been seen along with the inflation over the years. The

detail manpower recruitment plan has already been submitted before the Commission.

As per the OERC (Terms and Conditions for Determination of Wheeling Tariff and

Retail Supply Tariff) Regulations, 2022, the applicant has submitted the required details

in the prescribed format

TPSODL submitted that the period of FY 2022-23 reasonably presents the expenditure

of a stabilized operation and may be used for future projections. They have projected

the employee cost by considering a rise of about 8% in salaries and additional

recruitment in FY 2023-24 and thereby additional cost.

Regarding the objections on recruitment of personnel in TPSODL, licensee submitted

that, they have been operating TPSODL on the basis of the terms of the Vesting Order

of the Commission. Further the recruitment of manpower is carried out on the basis of

the approval of the Commission from time to time.

40. A&G cost

The A&G expenses proposed by the licensee are higher than the OERC approved A&G

costs for the current financial year. Further, the estimated A&G expenses for the

ensuring financial year are also higher. Objectors requested for prudent check of the

expenses.

Rejoinder of the Licensee

TPSODL submitted that the licensee incurs normal and Special A&G expenditure.

Further, these are permitted with 7% escalation. However, some of the expenditures are

statutory and mandatory in nature and licensee feels it should be permitted at actual.

The normal and special A&G expenditure is required for efficiently running of the

operations, increase collection and improve billing processes, improve billing

processes, and providing improved customer services. The expenditure in FY 2022-23

should form the basis of the estimation of expenditure for FY 2023-24 as the activities

of licensee are getting stabilized. Licensee further increased in the MBC activity and

also substantial increase in the rates for MBC.

TPNODL submitted that the licensee has prepared the ARR as per the provision of

OERC (Terms and Condition for Determination of Wheeling Tariff and Retail Supply

Tariff) Regulation, 2022, therefore all the projections have been estimated in the ARR

as per the norms and terms of the said regulation. Further, all the audited financial

50

reports of licensee are also furnished to the Commission periodically for its prudent

check.

TPWODL submitted that the licensee has provided detailed justification and head wise

break up of the A&G expenses vide para 2.5 in its ARR application for FY 2023-24.

The Commission has always approved the component wise ARR of DISCOMs with

prudent check and proper justification.

TPCODL submitted that the licensee in its ARR Petition has given detailed

justifications for Employee expenses, A&G expenses and R&M expenses at Page Nos.

37-54. Further, prudent check of the cost as estimated by the licensee shall be done by

the Commission before approval.

41. Gross Fixed Asset and CAPEX Plan

One of the objectors referred to the PFC report comparing the per capital fixed assets

across different states in India and pointed out that Odisha ranks 21 in terms of per

capita capital fixed assets of the distribution licensee. It was further pointed out that Rs.

20,000Cr Government assets have been set aside from the books of accounts of

DISCOM and urged to include the Govt. Assets in the books of accounts. One of the

objectors submitted that all the DISCOMs have committed capital investment plan and

as per the vesting order and compliance of the same so far be disclosed in the tariff

order. Some of the consumers submitted that the DISCOMs should submit the benefits

derived from infrastructure work completed through CAPEX plan and its impact on

tariff.

One of the objectors objected that the all the LT/HT consumers to whom supply is

required and where additional infrastructure is required are compelled to invest money

at their own expenses. The objector requested for the information on how much

consumer contribution made for creation of infra and was adjusted in energy bill as per

the Regulation.

Rejoinder of the Licensee

TPSODL has submitted that they have filed separate petition providing the details of all

schemes that have been proposed including the benefits arising from that scheme. In

this petition, based on the quantum proposed in the Capex petition, appropriate amount

has been considered for working out the ARR.

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TPCODL has submitted that, they have utilized the grant made available to them in the

opening balance sheet as well as subsequently they are sticking to the terms of the grant

and any assets created out of the grant are being capitalized in the books of accounts.

Further, TPCODL is providing audited statements to the Commission. TPCODL further

submitted that, its CAPEX plan for FY 2023-24 is submitted to the Commission on

22.12.2022 and they have provided a detailed cost benefit analysis.

TPNODL has submitted that the licensee had submitted its CAPEX plan for FY 2023-

24 to the Commission on 22.12.2022 providing a detailed cost benefit analysis.

TPWODL has submitted that the licensee places its CAPEX application in prior

consultation with all stakeholders and investment proposal has been considered only on

priority wherever there is requirement for overall improvement. The Commission

approves the Capex amount for each year after considering every aspect and appoint

consultant to check the relevancy of the Capex application.

42. R&M Cost

One of the objectors, submitted that the R&M being controllable cost, the licensees

have proposed very high R&M costs for the ensuing FY 2023-24.

Rejoinder of the Licensee

TPSODL submitted that the Commission has been approving R&M for assets owned by

TPSODL @ 5.4% of the Opening GFA and additional amount for assets that are not on

the Balance Sheet. On the higher estimated R&M expenditure over Commission’s

approval, Licensee submitted that high losses are due to non-spending on R&M. The

earlier licensee could not spend on R&M and they were only executing the breakdown

maintenance which takes its toll on the reliability of the Network. They submitted that

Distribution licensees are reluctant to take up any preventive maintenance and condition

based maintenance unless sufficient amounts are allowed under R&M. Licensee has

proposed preventive maintenance through outsourcing by placing performance based

AMCs through Business Associates.

The selected BA’s carryout regular surveillance in their operational area for timely

detection of abnormal operating conditions of the equipment and report the findings to

respective Area-in-Charge so that corrective actions can be initiated, implemented and

monitored to prevent failures. It also involves rectification and maintenance of

Overhead System, repairing/replacement of equipment, extensive trimming of trees,

52

Daily and weekly registration of complaints and their closures etc. In addition, the

expenditure is required to be incurred for Power Transformer repairs, DTs repairs, DSS

Maintenance, DT Replacement, 33 KV Line repairs and Maintenance, HT Line

Maintenance, LV Line Maintenance and maintenance of other equipment etc. The

expenditure on R&M as per norm of 5.4 % of the GFA is clearly not adequate for

carrying out satisfactory R&M expenditure and therefore, the licensees incur substantial

increase in R&M expenditure after privatization as this expenditure was not incurred in

the past.

TPSODL submitted that the asset base of Government Assets is about Rs 2406 Crores

which is about 2 times the asset base of TPSODL and the approved expenditure of Rs

30 Crores on Government Funded assets is not sufficient.

43. Depreciation

One of the objectors pointed out that the cash flow statement of the licensee does not

show any real payment of infrastructure loan and all the infrastructures are constructed

with owner’s contributions or the grants. Due to pass out of unnecessary depreciation

and no requirement of payment of interest on infrastructure loans, there is huge cash

accrued with DISCOMs.

Rejoinder of the Licensee

TPSODL has submitted that the licensee has claimed Depreciation on the basis of the

rates provided in the New Tariff Regulations, 2022 for assets created prior to take over

of business (i.e. 1

st

January 2021) as well as for assets created thereafter. The

Commission may decide the utilization of the same in the ARR in line with the

provisions of the New Tariff Regulations, 2022.

TPCODL has submitted that Depreciation is claimed strictly in accordance with the

provisions of the Tariff Regulations.

TPWODL has submitted that the licensee has calculated its depreciation cost on assets

transferred under segregation order in straight line method at pre 92 rates and on assets

created by the licensee as per new Regulation, 2022. As per vesting order at para No. 44

a(iii), “No depreciation shall be allowed to be recovered on assets created out of

Government grants/capital subsidy/capital contribution from consumers irrespective of

whether the corresponding grant is transferred to TPWODL or not”.

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44. Return on Equity

One of the objectors proposed that GRIDCO has 49% stake in the DISCOM and

equivalent ROE of GRIDCO equity should be set aside in this tariff proceeding.

Rejoinder of the Licensee

TPWODL & TONODL have submitted that they abide by the Regulations and Vesting

Order of the Commission. It is strictly guided by and follows the appropriate

Regulations and this is well within the ambit of the same. Furthermore, determination

of tariff is the prerogative of the Commission u/s 61 & 86 of the Electricity Act, 2003.

45. Non-Tariff Income

One of the objectors submitted that apart from the normal revenue realization, the

licensee generates revenue through non-tariff incomes like penalty on theft cases. The

performance of licensee should be reviewed based on the collection of penalty as it is

the major revenue under non-tariff income. NTI disclosed by TPWODL for FY23 and

FY 24 is very less and hence the same needs detailed scrutiny.

Rejoinder of the Licensee

TPSODL has submitted that under non-tariff income they only receive income from

DPS. The same is netted off by discount given to the consumers in the non-tariff

income for FY 2023-24. They do not have any revenue from CSS.

TPCODL has submitted that the income from CSS (income from Open Access) has

been taken into account while estimating the Non-Tariff income in the ARR FY 2023-

24 petition. Further, they have provided detailed item wise break up of Non-Tariff

income at Table 4-22 and Table 4-23 under the section 4.10 of ARR FY-24 petition.

Also they have estimated the NTI by considering Rebate on Power Purchase Cost (incl.

Transmission & SLDC charges), DPS (after allowing rebate) in Table 4-22 of ARR

petition.

TPWODL has submitted that the Commission while approving the provisional truing

up for FY 20-21 (3 months) in ARR for FY 2022-23 has set a principle that Meter rent,

Delayed Payment Surcharge and Over drawl penalty are to be excluded from

miscellaneous receipt. However, the Licensee has offered 1/3rd of DPS, ODP and

supervision charges to be passed on in accordance with the regulation.

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46. Interest on working capital

The licensees have abundant cash/bank balance in its books which has been utilized for

the purpose of working capital. The cash flow statement does not show any short term

loan floated by licensee and hence the claim of interest on working capital submitted by

licensee in ARR may be rejected.

Rejoinder of the Licensee

TPSODL has submitted that the licensee has claimed Interest on Working Capital on

the basis of the norms provided in the Tariff Regulations 2022. The Commission may

decide the utilization of the same in the ARR in line with that provided in the New

Tariff Regulations, 2022.

TPCODL has submitted that, they have working capital including Overdraft facility

with banks like SBI, IDBI, Canara bank etc. amounting to Rs. 1022 Cr which were

utilized in a prudent manner with dynamic drawls and repayments to match cash flow

deficit/surplus. In their Cash Flow ‘Proceeds from Working Capital Loan’ refers to

outstanding loan against Working Capital facilities i.e. Rs. 308.85 Crore. With respect

to interest on working capital the extant Regulations require the same to be allowed on

normative basis with any efficiency brought about by the DISCOM with respect to the

actual interest on working capital vis-à-vis its normative allowance being shared with

the consumers (1/3rd) and 1/3rd kept in Tariff balancing reserve, with only the balance

1/3rd being allowed to be retained/paid out as dividend by the Licensee.

TPNODL & TPWODL have submitted that the interest on working capital on

normative basis claimed by the licensee is in line with the Regulation 3.10 of the New

Tariff Regulations, 2022. Furthermore, the variation between the normative interest on

working capital recomputed at the time of Truing-up and the actual interest on working

capital incurred by the Distribution Licensee, substantiated by documentary evidence,

shall be considered as an efficiency gain or efficiency loss, as the case may be, on

account of controllable factors.

47. Revenue Subsidy and gap

One of the objectors submitted that all the State Governments, except Odisha are

paying revenue subsidy so as to keep the tariffs low. One of the objectors pointed out

that the subsidy extended by Govt. of Odisha is capital in nature which has been

scrupulously misappropriated. Objector requested to review the subsidy policy of Govt.

55

of Odisha. One of the objectors submitted that the policy and regulation do not provide

any mechanism and scope to pass out revenue gap or revenue surplus / deficit in the

ARR and requested the Commission to make the revenue gap as zero.

Rejoinder of the Licensee

TPCODL has submitted that they have submitted the true up petition for FY 2020-21

(10 Months) and FY 2021-22. In addition, they have estimated revenue gap for FY

2022-23 based on the actual performance for H1 and estimate for H2 of FY 2022-23

and they projected deficit (along with the carrying cost) upto end of FY 2023-24.

48. Provision for Bad & Doubtful Debt

One of the objectors submitted that the DISCOMs have proposed 99% collection

efficiency and hence considered 1% as the bad debt. The objector pointed out that the

1% of the unrealized collection which is over one-year-old can be collected in the

preceding 7 years. So practically (1/7) i.e. 0.15% should be the bad debt which is

proposed by objector and requested for only 0.15% bad debt to be passed on to the

ARR in the present tariff proceedings.

Rejoinder of the Licensee

TPSODL has claimed the provision for Doubtful Debts on the basis of the Tariff

Regulations 2022. TPCODL also submitted that they have claimed the provision for

Doubtful Debts on the basis of the Tariff Regulations 2022 which is allowed on

normative basis of 1% of the total annual revenue billed for sale of electricity.

TPWODL & TPNODL have submitted that the Distribution Licensee abides by the

Regulations and Vesting Order of the Commission. It is strictly guided by and followed

by the appropriate Regulations and is well within the ambit of the same. Furthermore,

determination of tariff is the prerogative of the Commission as per Section 61 &

Section 86 of the Electricity Act, 2003.

49. Wheeling tariff and OA charges for Renewables

Some of the objectors referred to the Govt. of Odisha Renewable Energy Policy 2022

and highlighted the provision under policy related to reduced wheeling charges,

transmission charges and no CSS for procurement of RE by industries. The objectors

requested for guidelines from the Commission for implementation of Odisha RE Policy

2022.

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Rejoinder of the Licensee

TPCODL submitted that the sole power for allowance of any concessions, etc. on levy

of charges is with that of the Commission. The Respondent is aware that the exemption/

concession with regard to Wheeling Charges, Transmission Charges, Cross Subsidy

Surcharge was withdrawn by the Commission in its Tariff Order dated 24.03.2022

itself. The Commission was of the view that, with the reduction in the cost of

generation from the solar and wind plants, there may be no justification for continuation

of concessional open access charges and burden on other consumers can be avoided.

TPWODL submitted that as per para 23.5 of Odisha RE Policy,2022, no CSS shall be

applicable to industries on harnessing RE power through GRIDCO, which appears to be

a different mechanism than prevailing Open Access. Further, as per RE policy the

benefit is being extended only when it is generated inside the state of Odisha during the

policy period. On other hand, MoP, GoI has amended its Open Access Green Energy

Rules, 2022, vide notification dated 27.01.2023, where in it has been mentioned that.

“(1) The charges to be levied on Green Energy Open Access consumers shall be as

follows, namely: -(a) transmission charges; (b) wheeling charges; (c) cross subsidy

Surcharge; (d) standby charges wherever applicable; (e) banking Charge; and (f) other

fees and charges such as Load Despatch Centre fees and scheduling charges, deviation

settlement charges as per the relevant regulations of the Commission. However, the

Commission may take a judicious decision in this regard

TPNODL submitted that the Commission may pass necessary order as deem fit to

promote scaling of RE projects in the state in line with Odisha Renewable Policy, 2022.

However, the existing provision of levy of CSS and wheeling charges as applicable to

consumers availing conventional power may please be continued for availing open

access from RE projects outside the state.

50. Cross Subsidy Surcharge and Open Access Charges

One of the objectors submitted that the Cross Subsidy Surcharge (CSS) are high in the

State of Odisha which makes the OA transactions unviable. Further, he requested to

reduce CSS by 50%. One objector opined that CSS should be reduced progressively

and the Commission still has not specified the procedure for progressive reduction of

CSS. DISCOMs to submit the actual income from CSS for the past years and project

57

the income for future and the objector proposed that CSS should not be levied on the

consumption exceeding the forecasted consumption.

Rejoinder of the Licensee

TPNODL has submitted that Tariff Design and Determination is the sole prerogative of

the Commission.

TPWODL has submitted that the Commission has been reducing the applicable CSS for

tariff fixation for the various categories viz. EHT and HT over the period of time. The

Commission has been following the formula for computing the OA charges and cross

subsidy charges as prescribed in tariff policy notified by MoP. The licensee requested

the Commission to suitably decide the Cross-Subsidy Surcharge keeping in mind the

National Tariff Policy and the trajectory to be followed for reduction of CSS over the

period of time.

TPCODL submitted that Tariff Design and Determination is the sole prerogative of the

Commission.

51. Cross Subsidy surcharge & Average Cost of Supply

Some of the objectors contended about the increased burden of CSS on HT and EHT

consumers and they referred to the tariff policy provision wherein the applicable tariff

was proposed to be kept with +/- 20% of cost of supply. One of the objectors

mentioned that due to high cross subsidy surcharge, the industries are not able to go for

availing power supply through open access

Rejoinder of the Licensee

TPCODL has submitted that the Commission has been determining tariffs in

consonance with the provisions of the Electricity Act, 2003, as well as the National

Tariff Policy. The Tariffs are stipulated by the Commission within ±20% of the average

cost of supply of the DISCOMs. On the point, cross subsidy should be equal to cross

subsidy surcharge which is collected to compensate the distribution licensee for

financial loss incurred by due to loss of cross subsidy. The licensee submitted that the

Tariff Design and Determination is the sole prerogative of the Commission.

TPNODL has submitted that, from FY 2018-19 to FY 2021-22, the no. of consumers

availing open access has been increased from 11 to 18 whereas the quantum of power

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availed through open access has been increased from 1250 MU to 1550 MU during the

same period.

TPWODL has submitted that the Commission has been reducing the applicable CSS for

tariff fixation for various categories viz. EHT and HT over the period of time. Cross

Subsidy has been defined in Clause 7.77 of OERC (Terms and Conditions of

Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2014 which is

in conformity with para 8.3.2 of Tariff Policy and para 5.5.2 of National Electricity

Policy. The said Clause 7.77 is reproduced below:

“7.77 For the purpose of computing Cross-subsidy payable by a certain category of

consumers, the difference between average cost of supply to all consumers of the State

taken together and average voltage-wise tariff applicable to such consumers shall be

considered.” In table No. 22 of the RST order, the Commission has provided voltage

level wise percentage of cross subsidy above/below of average cost of supply since FY

2017-18 to current year. From the table it can be observed that the percentage is well

within ± 20% as advised in National Electricity & Tariff Policy. The licensee submitted

that Commission may suitably decide the CSS keeping in mind the provisions under

Tariff Policy.

52. Issues in kVAh vis a vis kWh billing

Some of the objectors pointed out that the DISCOMs purchase power at BSP which is

charged on kWh basis. The unit rate being charged for consumers under kVAh billing is

high as compared to kWh based billing. Further, due to kVAh based billing the

consumers are not getting any PF incentive or disincentive. One of the objectors

submitted that adoption of KVAh billing is the safeguard to the licensee from

commercial point of view. By introduction of KVAh system of billing, the PF incentive

is withdrawn and there is more revenue to DISCOM at higher kVAh recording but

system may be damaged. The consumers pointed out that for working of the power

system, reactive power is also required and hence they requested to reintroduce the

kWh based billing with PF incentive and disincentives or may reduce the unit rates of

the kVAh based billing.

Rejoinder of the Licensee

TPSODL submitted that, they are not able to appreciate the connection of kVAh billing

with the standardization of DTRs by BEE. After a long time, the Commission has

59

allowed kVAh billing instead of the kWh billing. While opting the kVAh billing, the

Power Factor (PF) penalty and incentive was withdrawn. TPSODL submitted that such

billing would improve the power factor of the consumer. Moreover, kVAh billing is

prevalent in many states of India like Maharashtra, Himachal Pradesh, Delhi Uttar

Pradesh, Jammu & Kashmir, Andhra Pradesh, Chhattisgarh, Bihar, Haryana and

Punjab.

TPCODL & TPWODL have submitted that the Commission has introduced kVAh

billing in FY-2021-2022 which was supposed to be introduced in FY-2014-2015. The

licensee had submitted that it is an established fact that kVAh billing system would give

benefit to both the consumer as well as the licensee in maintaining system stability,

ensuring power quality and achieving loss reduction. In this regard, it is apt to submit

that the Hon’ble APTEL in several cases passed orders in favour of the kVAh billing.

53. DPS for Domestic & Commercial Consumers

One of the objectors submitted that the DPS was introduced for delay payment of

electricity bills by the domestic consumers. Some of the consumers pointed that the

licensee is issuing provisional bills and the bills are also served late and DPS is charged

which is penalizing the consumers. The licensee should take the acknowledgement of

bills delivery. The objectors proposed to withdraw DPS till 100% metering is not done.

Further, he pointed out that the FD rates are close to 6% and hence, the consumers are

penalized by 18% DPS.

Rejoinder of the Licensee

TPSODL has submitted that, bills are being served to the consumers and only after the

Due date, DPS is being charged as per the provisions of the Tariff Order. In case there

is any specific instance of not following the order of the Commission, the same may be

brought to the attention of TPSODL.

TPWODL & TPNODL have submitted that, to avoid the tendency of certain consumers

among the consumer categories of domestic and commercial who are negligent towards

bill payment once the due date is over, the Commission has introduced Delayed

Payment Surcharge mechanism. The licensee never intends that its esteemed customers

should pay DPS, rather encourages for payment within due date and avail rebate. Also,

charging of DPS is in line with neighboring states and acts as deterrent for non-payment

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of bills in time. The objector is erred in comparing interest on fixed deposits to delayed

payment surcharge which in turn is a penalty for non-payment of bills.

TPCODL submitted that the bill copy is being served to the consumers in time with

proper due date. Also e-copy of bills is served immediately after generation of bill

through whatsapp, e-mail and message to the registered number/email id. In case there

is any specific instance of not following the order of the Commission, the same may be

brought to the attention of TPCODL

54. Billing through the defective meters and provisional bills

One of the objectors submitted that billing through the defective meters be done as per

Regulation instead of the average of summer consumption as proposed by the licensee.

One of the objectors referred to the provisions of regulations where the provisional bills

can be served not more than one billing cycle. However, this is grossly violated and

around 30% of the bills are served as provisional and the same is impacting the

collection efficiency of the DISCOMs.

Rejoinder of the Licensee

TPWODL & TPNODL have submitted in its ARR Applications that the licensee has

requested the Commission for a practice direction for revision of the provisional bill in

case of defective meter, considering the past corresponding period’s actual

consumption. That means if meter found defective in Summer, bill shall be revised

considering actual consumption of summer only and if it is in winter, past winter period

actual meter reading may be taken into consideration.

55. Security Deposit (SD)

Objector referred to the Regulation 52, 53 and 54 of OERC Distribution Conditions of

Supply Code 2019 and referred to these provisions in detail for its implementation

based on the actual SD deposited and the average bills and the revised security required.

The excess SD deposited should be returned to the consumers. The information on

shortfall and excess security deposit submitted by all the consumers be made available

on website for excess and shortfall in SD. One of the objectors suggested that Security

deposit interest is very low and it should be increased for all consumers. One of the

objectors submitted that the MSMEs be allowed to deposit SD in three equal

installments. It was also proposed that the security deposit be calculated to nearest

hundred rupees instead of odd figures for easy transactions and for fair accounts.

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Rejoinder of the Licensee

TPSODL has submitted that the interest rate on SD is decided by the Commission in

each Tariff Order. The interest rate in turn is dependent on the SBI Bank rate and same

as in March 2022 was 4.25% as explained in the Tariff Order for FY 2022-23 and

recently the rates have risen. The Commission may revise the rates in the tariff Order

for FY 2023-24 and TPSODL will pay the interest on the revised rate.

TPWODL and TPNODL have submitted that the distribution Licensees are being

abided by the Regulations of the Commission and the specified Supply Code as in force

from time to time. It is strictly guided by and following the appropriate Codes of the

OERC (Conditions of Supply) Code, 2019 and is well within the ambit of the same.

TPCODL has submitted that the interest on Security Deposit is allowed by the

Commission as per OERC Distribution (Conditions of Supply Code), 2019 which has

been linked by the Commission in the FY 22-23 Retail Supply Tariff Order to the

prevailing Bank Rate notified by RBI in the March 22. The fixation of benchmark rate

of interest on security deposit is the sole prerogative of the Commission who shall

decide the same for FY 2023-24.

56. Separate consumer category for Railways

East Coast Railways is sourcing EHT supply from all the DISCOMs in Odisha.

Railways is providing efficient and eco-friendly mode of transport and has many such

added advantages. Railways referred to the separate tariff category created by other

states and requested similar separate tariff category for railways with concessional

tariff. Railways requested for tariff at par with the EHT consumers having LF >60%.

Railways also requested to extend LF benefits from 40% instead of 60% and requested

to charge the unit rate at par with the cost of supply for EHT consumers.

Rejoinder of the Licensee

TPSODL has submitted that the Commission may design an appropriate Tariff structure

for Railways. They also requested the Commission to compensate TPSODL for any

reduction/increase in revenue due to change in tariff structure to Railways.

TPCODL has submitted that, the ‘Railway Traction’ is already a separate category

(both under HT and EHT). With regard to the issue of Tariffs including fixation of

Demand / Energy Charges, the Commission has the sole prerogative for Tariff Design

and Determination of applicable Tariffs. The Commission may decide taking into

62

account the submission of the Respondent including its phase of supply, load factor,

etc. TPCODL further submitted that the Commission may take into account the adverse

revenue impact of any such change in slab from 60% to 40% which would require

compensation.

TPNODL & TPWODL have referred to the tariff for Railways in other adjacent States

and Railway tariff in State of Odisha. The tariff applicable to Railways herein Odisha is

much competitive. Hence reduction of Railways tariff as compared to other HT & EHT

category will affect the revenue of the utility. When Railways is also being separately

categorized under HT & EHT as “Railway Traction”, there is no such requirement for

creation of another specialized category.

TPSODL has submitted that the Commission may design an appropriate Tariff structure

for Railways. However, TPSODL should be compensated for any reduction/increase in

revenue due to the above change

57. Ceasing of emergency Supply status

Some objectors have objected on the licensees’ proposal to cease the emergency supply

status in case of breach of any of the required parameters for three consecutive months.

Rejoinder of the Licensee TPCODL

In order to ensure no misuse of the Emergency Supply provision and to allow

DISCOMs to estimate and plan for their demand better, it has been proposed by

TPCODL that in addition to the provision for Emergency Supply being restricted to

10% of the load factor of the highest capacity of Generating Unit, the maximum

demand should also be restricted upto 100% of highest Generation Capacity. Further,

in-order to avoid any ambiguity, TPCODL has requested to specify the over drawal

penalty.

58. Separate Consumer category for ‘Mega Steel Plant’ with special Tariff

One of the objectors requested for introduction of a separate consumer category for

Mega Steel Plant with special tariff.

Rejoinder of the Licensee

TPCODL has submitted that as per regulation, steel industries having contract demand

of 100 MVA will come under heavy industry category. So, there is no need for creation

of separate category. Further, tariff for all the categories under EHT is same and in the

63

RST Order FY 2022-23, the Commission had allowed additional rebates for steel

industries.”

TPNODL has submitted that the licensee has proposed a number of measures to support

industrial growth. Presently there are 36 tariff categories. Increase in tariff categories

will just create much complications in the procedure. However, the Commission may

decide the matter on merit.

59. Applicability of Industrial Tariff to Telecom towers

Reliance Jio Infocomm Ltd, is being charged under commercial category at present.

They have posed importance of telecom sector and their key role in IT sector. IT

industries are being charged under Industrial tariff in AP. With wider penetration of 5G,

more telecom towers will be installed across the country and hence, they requested

telecom towers be provided with the supply under Industrial Consumer Category.

Rejoinder of the Licensee

TPCODL has submitted that, Fixation of Tariff is the sole prerogative of the

Commission who may take appropriate decision in this regard. The licensee submitted

that, telecom industries (Towers) is covered under General purpose (Category) category

as per existing OERC Distribution (Conditions of Supply) Code, 2019 under Chapter-

VIII (Classification of Consumer) and any change in classification would require

amendment to the Supply code. Considering the nature of business of Telecom

Company which is neither carrying out any process of manufacturing, etc., the licensee

is of view that the present applicable GP rate for Telecom segment is appropriate.

TPWODL & TPNODL have submitted that other states have higher Industrial rate and

commercial tariff for same load whereas Odisha has cheaper commercial rate. In

Odisha if power supply in LT, then slab rate is applicable, where rate of initial slab is

Rs.5.90 per unit and in case of HT supply the rate for consumption up to 60% LF is

Rs.5.85 per unit and for consumption of more than 60% LF it is as cheaper as Rs.4.75

per unit. Therefore, the present applicable GP rate for Telecom segment is appropriate.

60. Introduction of three slab graded tariff

One of the objectors referred to the MoP report on “Electricity Tariff & Duty and

Average Rates of Electricity supply in India – March 2019” and also referred to the

PFC report on “Performance of Distribution Utilities for FY 21” from the perspective of

comparative tariffs and tariff rationalization measures adopted across states. One of the

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objectors submitted that tariff should be rationalized as proposed under the Electricity

Act, 2003 and tariff should reflect the cost of supply and the consumers at particular

voltage should have same tariff. One of the objectors requested to reintroduce 3 slab

graded incentive tariff. The objectors also submitted that with reopening of HT and

EHT industries post COVID, the industrial consumption is going to increase. Also with

“Make in Odisha Conclave” new industries are being planned in Odisha which will

further increase sales and hence the objectors have requested for reduction in HT and

EHT tariffs.

Rejoinder of the Licensee

TPCODL& TPWODL have submitted that, Tariff Design is the sole prerogative of the

Commission and the licensee is of the view that the 3-slab based graded incentive tariff

mechanism is not actually beneficial as it complicates the billing mechanism without

offering commensurate benefit. In the 3 slab mechanism, the difference in slab tariff

was negligible, but in two slabs, the difference is more than one rupee which is almost a

reduction of 19%.

TPNODL has submitted that the determination of tariff is the prerogative of the

Commission u/s 62 & 86 of the Electricity Act, 2003 and the Licensee is guided by the

same.

61. Load Factor Incentive to steel industries having Induction Furnaces

Utkal Chamber of Commerce & Industry referred to the LF incentive extended to steel

industries having Induction furnaces in the last tariff order. Along with Chamber some

of the industries have also requested to extend the LF incentive to entire Iron and Steel

sector having electric arc furnaces. One of the objectors requested to extend the LF

incentive to alloy industry also. The objector submitted that operating the iron and steel

plant at more than 85% is difficult due to the regular maintenance and hence proposed

reduction of LF by 5% to make win-win situation for DISCOM and consumers and

proposed the following changes:

Table - 16

CD upto 6 MVA CD above 6 MVA

For load factor of 65% and above up to 70%

10% on energy charge

For load factor above 70% up to 80% 15% on energy charge

8% on energy

charge

For load factor above 80% 20% on energy charge

10% on energy

charge

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Rejoinder of the Licensee

TPCODL has submitted that the Commission, in the RST order for FY 2022-23, has

approved rebate for all HT consumers (steel plants with induction furnaces) having CD

of 1MVA and above based on their LF. This load factor rebate structure recommended

for the induction furnace specially keeping in mind their consumption pattern. Since

Tariff Fixation is the sole prerogative of the Commission and therefore, the

Commission may decide the request of the Respondent.

TPWODL submitted that the Commission recommended the load factor incentive to

steel plants with induction furnaces keeping in mind the tariff structure and rates in the

neighbouring state to have competitive advantage to the local industries to manufacture

their products in the state of Odisha. However, the Commission may take a suitable

decision in this regard.

62. TOD benefit

Some of the objectors requested to make broad classification of consumers eligible for

TOD tariffs. Further, to promote demand side management and to encourage the

consumers to shift their load from peak hours to off peak, the objector requested to

increase the TOD benefits from 20 paisa to 50 paisa per unit. One of the objectors

pointed out that DISCOM has not introduced remote metering and still undertaking

manual meter reading. Further, licensee is not giving supportive dump reports to

consumers as and when asked for, in case anomalies are observed in bills even after

making payments.

Rejoinder of the Licensee

TPCODL has submitted that, they do not agree with the proposal as majority of TOD

rebate are being availed by the HT and EHT consumers and revenue realisation from

HT & EHT will be reduced on allowing additional TOD rebate which may result in

additional tariff hike for all the category of consumers. Any fixation of the same is the

sole prerogative of the Commission.

TPNODL has submitted that ToD benefit has already been extended by the

Commission for all three phase consumers with static meters excluding Public Lighting,

Emergency Supply to CGP, LT Domestic, LT GP, @20Paise per unit for energy

consumed during off-peak hours. The intention of the Commission is to shift the load of

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the consumers from peak hours to no-peak night hours. But the licensee is not in

agreement with the proposal of increasing the ToD benefit from 20paise to 50paise

TPWODL has submitted that the load curve behavior/ consumption pattern has been

changed, even in the night time or designated off peak hours the demand appears to be

high, which forces GRIDCO to source high cost power. Hence, in spite of increase of

30paise/unit in ToD rebate, changes in overall ToD mechanism may be more beneficial.

The Commission may take a suitable decision in this regard.

63. Revision of Reconnection Charges

Some of the Objectors submitted that licensees do not maintain record of disconnection

and reconnection as per Regulation 51 of the Supply Code and the same is required to

be verified by the third party and the data is not provided on website. The

disconnections are done without issuing proper notice. Licensee’s proposal to revise

reconnection charges which is very high will not have positive effect and hence it

should not be considered.

Rejoinder of the Licensee

TPCODL has submitted that the proposed reconnection charges are only in case of such

non-smart meters which cannot be remotely disconnected and connected. TPCODL has

proposed for revision of reconnection charge due to the increase in costs as these

charges have remained at the level fixed in 2012. The licensee proposed that they do

not intend to earn revenue out of the penalty, but it should act as a deterrent method for

repeatedly defaulting consumers.

TPNODL and TPWODL have submitted that the biggest challenge in the field even

after disconnection, consumers are reconnecting power supply through their own means

and ways. This is not only affecting business of the licensee, but at the same time, risk

of fatal accident cannot be ruled out. It is not possible to monitor post disconnection by

24 x 7 with the available resources as well as it is not cost effective. Further,

reconnection charges are continuing since last 10 years even though BST and RST of

DISCOMs have been increased number of times.

64. Introduction of Special Tariff for the industries who have closed their units

Some of the objectors have proposed modification in the Special tariff structure

proposed by TPWODL for encouraging the closed industries to re-start their

production. The objectors proposed an additional discount of 50 p/unit on entire energy

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charges to be provided to industries who will start their operation in FY 2022-23. The

objectors also proposed that the closed industries availing this revival discount should

be eligible for additional discount and load factor incentives and other tariff structure

related to the operating industries.

Rejoinder of the Licensee

TPWODL has submitted that the proposal submitted by licensee in its ARR application

for FY 2023-24 is for revival of the closed industries and is beneficial for both industry

as well as DISCOMs. The licensee in its proposal submitted to the Commission

requested for an incentive equivalent to 20% on entire units consumed if achieves 60%

L.F. in a month, provided that the industry has to start with the load when it was closed

and no load reduction is permissible before or after availing this benefit during FY 23-

24.

However, the modifications suggested by the objectors appears to be only consumer

centric which will create dissatisfaction among other industries those who are

running/operating and it will create disparity among the industries which are operating

at present and those which shall re-start their operations. The licensee requests the

Commission to take appropriate decision in this regard.

65. Modification in the applicability of Special Tariff Structure applicable to steel

industry based on load factor and Special tariff to Industries having CGP having

CD < 20 MW.

Some of the industries are opposing to the modification proposed by TPWODL in

special Tariff Structure applicable to steel industry based on load factor and Special

tariff to Industries having CGP having CD < 20 MW. The industries propose that the

present provisions as recommended by the tariff in FY 2022-23 tariff order may be

continued without any change.

Rejoinder of the Licensee

TPWODL has submitted that Special Tariff Structure applicable to steel industry based

on load factor as specified in Annexure B (vi) in the tariff schedule of FY 2022-23 tariff

order issued by the Commission is applicable for all HT industrial consumers (steel

plant) having CD of 1 MVA and above with the DISCOM. At present the LF based

graded tariff can be availed by the steel industries having CGP as well as not having the

CGP. The licensee further submitted that the industries having CGP prefer to keep

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lower CD with the DISCOM as they have CGP to meet their requirement of electricity

and avail the benefit easily by maintaining the CD at desired level.

The licensee in its proposal submitted in ARR application for FY 2023-24 requested the

Commission to make distinction between the Special tariff structure recommended for

the industries under (vi) and (vii) in Annexure B to the effect that the Special graded

tariff structure based on load factor shall be allowed to the steel plants without CGP

and the special tariff recommended in (vi) in Annexure B shall be applicable to any

industry having CGP with CD up to 20 MW willing to avail power from DISCOMs up

to double the CD without over drawl penalty .

66. Issues regarding Meter Rent and recovery period

Some of the objectors pointed that the licensee’s proposal to increase the meter rent for

installation of smart energy meters is in the interest of licensee as AMC facility of smart

meter is required by licensee. Consumers are getting the supply through normal energy

meter and they do not require AMC facility. Hence the cost of replacement of existing

meters should be borne by licensee. They also submitted that the energy meter rent

being collected for 60 months is proposed to be enhanced to Rs. 80 per month is very

high and the licensee may be permitted to recover the meter rent up to the cost of meter

only. The MMFC for LT domestic consumers is Rs 40/- and the proposed meter rent of

Rs. 80/- is higher than the fixed charges and meter rent should not be increased.

Licensee is collecting Rs.40 as meter rent for 60 months which is totaling to Rs. 2400

against the meter cost of Rs.1000/- and hence meter rent needs to be reviewed. One of

the objector suggested to use the existing operational electronic meters for street lights

or other BPL consumers in rural areas without replacing with the Smart Meters.

Rejoinder of the Licensee

TPSODL has proposed for enhancement of meter rent to the Commission considering

the cost of meter, its box and cost of installation discovered recently through a

tendering process. The rents proposed, after considering the cost of funds are just

adequate to meet the capital cost of the meter in 5 years. In order to reduce the burden

on the consumers, TPSODL has proposed the recovery of the meter rent in 7 years.

They further submitted that meter rent would be recovered on the basis of the Supply

Code Regulations and on the basis of the directions of the Commission.

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TPCODL has submitted that, the cost of a Single Phase Smart Meter is presently in the

range of Rs.4,500 to 5,000 including meter-box, seals, etc. inclusive of GST. Beyond a

point, additional bulk purchase does not result in linear or pro-rata reduction in price,

with such marginal benefits of scale reducing progressively. They further pointed out

that, with Rupee depreciating, the cost of Smart Meters has risen due to sizeable

imported components.

TPNODL has submitted that the consumer has always an option to install own meter

and in such a case, meter rent is not recoverable. Further, cost of meter needs to be

considered along with other incidental expenditures like installation cost, etc.

TPWODL has submitted that the Commission had permitted the recovery of Smart

Meter cost through monthly meter rent. Currently, TPWODL recovers an amount of Rs.

1500/- (Meter Cost - Rs.1271/- + Rs.229/- GST) under “Mo Bidyut” towards

installation of Single-Phase meter while providing new connection. The cost of Single-

Phase Smart Meter would be around Rs.4500/- (with GST) including installation which

needs to be recovered from the consumer. However, as per existing RST order for

single phase Smart meter, monthly meter rent is only Rs.60 and licensee are permitted

to recover maximum upto 60 months. As a result, entire cost of Smart Meter including

cost of installation is not fully recoverable. Hence, the Licensee has requested the

Commission for suitable revision of the monthly meter rent i.e. from Rs. 60 to Rs.80 for

Single-Phase Smart Meter.

67. Creation of Energy Police Station

One of the objectors pointed out that licensees have made no use of these police stations

over the years except bearing the establishment burden. The objector opined that in a

democratic setup everything cannot be controlled through Law and Order, however

licensees should try to change the consumer behaviour through awareness and rapport.

Technology can be used to detect pilferage and to take remedial measures.

Rejoinder of the Licensee

TPCODL has submitted that creation of Energy Police Stations shall have a salutary

effect towards prevention of theft and control, whose benefits shall accrue to the State

and its consumers.

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68. Levy of Cyclone Resilient Cess

Some of the objectors oppose the proposal of DISCOMs on the creation of separate

Cess for building funds for initiating immediate network restoration activities after

cyclone.

Rejoinder of the Licensee

TPCODL has submitted that, the DoE has clarified that funds from SDRF and NDRF

are made available only for immediate restoration and DISCOMs should plan for

unforeseen contingent situations. As the frequency of natural calamities have increased,

TOCODL felt imperative to create separate fund to build inventory bank to ensure

quicker restoration of power after the calamitous situations.

69. Modification in Rebate structure in the tariff applicable to Steel Industries

Some of the industries propose changes in allowed rebate structure for the Steel

Industries in the manner as provided below:

Table - 17

CD upto 6 MVA CD above 6 MVA

For L.F of =>65% to 7

0%

10% on EC

For L.F of

>70% to 80%

15% on EC

8% on EC

For L.F of >80%

20% on EC

10% on EC

Rejoinder of the Licensee

TPWODL has submitted that the licensee in its ARR application for FY 2023-24

proposes to continue the special rebate with more clarity on applicability of it.

However, the objector in their objection stated that industries are facing difficulties in

maintaining the LF approved by the Commission in FY 2022-23 tariff order and

therefore has proposed a change in LF rebate mechanism as described above. The

licensee submits that the Commission may take a suitable decision in this regard.

D. OBSERVATION OF STATE ADVISORY COMMITTEE (SAC) (PARA 70)

70. The Commission convened the SAC meeting on 15.03.2023. The summary of

suggestions with respect to DISCOMs are placed below:

(a) The State Government should provide subsidy to MSME industries operating at

higher load. As Tata Company is providing electricity throughout the State,

appropriate measures may be taken so that it should not have monopoly. More

numbers of GRF / Ombudsman offices can be set up. Adequate compensation

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should be given to the persons on whose land distribution infrastructure is

erected.

(b) Agriculture based tariff categories are highly subsidized and there is a

requirement of reduction of cross-subsidy for allied agricultural category.

Consumers should be given two options either for billing i.e. kVAh or kWh. The

industries having load more than 2000 kVA can be recognised as power

intensive industry and the benefit of special tariff can be extended to them.

(c) All the meters may be replaced by Smart Meter and the time of use tariff may be

decided for those consumers. There should be introduction of three types of

tariffs i.e. normal, peak and off-peak tariff as per time of use to flatten the load

curve. Further, awareness programme should be organised in this regard to

sensitise the consumers.

(d) The employee cost suggested by DISCOMs is very high and is not acceptable

because of adoption of technology & computerisation in each stage of operation.

DISCOMs are not adhering to the Regulations framed by the Commission.

DISCOMs are not following the billing cycle of thirty days and sometimes the

consumers are even billed in less than thirty days, which is gross violation of the

Regulations in force. The HT loss which is considered as 8% should not be

allowed and should be justified by the licensees, if allowed. Government should

give subsidy to LI consumers as it is not possible to cross-subsidize all the

categories of consumers. The industrial consumers will opt for open access and

DISCOMs will get less revenue if industrial tariff is not reduced. Further,

proposed O&M cost, particularly the employee cost proposed by the DISCOMs

is too high. All the O&M works of DISCOMs have been outsourced. Hence, 1.4

employees per thousand consumers appear to be very high. The Licensees have

proposed outsourced employee cost also. That above 60% of the existing

employees are sitting idle and outsourced staffs are managing the operations.

Prudent check of the cost effectiveness of the proposed expenditure is to be

made.

(e) More the consumption, Less the rate principle should be adopted since State of

Odisha is considered as a power surplus State. Neighbouring State like West

Bengal is charging meter rent of Rs.10/-. Simplification of billing format and

use of A4 size paper for billing is requested. Institutional strengthening of GRF

and Ombudsman should be made.

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(f) There should be waival of minimum fixed charges for industries. Fine imposed

for overdrawl may be abolished. DISCOMs are serving the electricity bills with

huge dues suddenly after a long gap of 2 to 3 years and insisting for payment at

one go. This type of practices should be stopped. Further, the consumers may

not be penalised for drawl beyond the approved contract demand.

(g) Sanitisation of consumer data base and introduction of KYC for all consumers

to identify the actual consumers should be made. Consumer indexing linking to

DTs will be helpful for DISCOMs for energy auditing. The consumers are not

being informed about the power supply interruptions through messages.

(h) The electricity tariff in Odisha may be reduced like Delhi and Gujarat. Further,

the Disaster Fund may be created from the Government Fund. DISCOMs are not

following the proper procedure while assessing under Section 126 and Section

135 of the Electricity Act, 2003.

(i) Newly introduced OERC (Terms and Conditions for Determination of Wheeling

Tariff and Retail Supply Tariff) Regulations have not been followed by the

DISCOMs while submitting the petitions. Penal charges (1% to 2%) may be

imposed in coming years for non-submission of petitions in proper manner. Tata

Power managed DISCOMs have earned a profit of almost Rs.1.00 per Unit

during FY 2021-22 and as per Retail Supply Tariff Regulations, tariff is to be

reduced progressively and one-third of the profit is to be passed on to

consumers. In earlier era (managed by Reliance), salary of top executives was

borne by Reliance. Cold storage (who are operating in 2 degree centigrade

environment) can be given allied agricultural status and suitable order in this

regard may be passed by the Commission. Standard design may be published by

OPTCL/ DISCOM so that local MSME can manufacture the same and supply to

them.

(j) Consumer should have right to select the vendor for installation of solar PV

plant. DISCOMs must appraise the Commission about AT&C loss reduction in

regular interval. DISCOMs should also submit Division-wise losses. Meter is

an integral part in the electricity business like gas and telecom business.

However, meter installation and its rent is becoming almost a new business for

the DISCOMs. Addition of 1 P/U or 2 P/U in tariff should be made instead of

charging the monthly meter rent.

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(k) More structured ToD tariff is required to flatten the load curve. The present

level of ToD tariff is very low, so the same may be increased. However, suitable

incentive / penalty mechanism may be introduced. The generation of harmonics

by steel and Aluminium Industries is also a concern. Harmonic measurement

may be required for those industries. The industries generating harmonics and

injecting to the system may be penalized.

(l) The Retail supply tariff should not be increased, rather it may be decreased.

Government has already made huge investment in infrastructural development

of the licensees to reduce the burden on the consumers of the State. Reduction of

tariff for cold storage and drinking water schemes may be considered.

E. VIEWS OF GOVERNMENT OF ODISHA ON TARIFF ISSUES (PARA 71)

71. Government of Odisha vide their Lr. No. 3402/ En., Bhubaneswar, dated 21.03.2023

have submitted their views on the tariff proceeding for the FY 2023-24 as follows:

(a) State Government has no plans to provide any direct subsidy to any class of

consumers, since Government have been providing huge budgetary support over

the years for creation of capital assets in order to keep the tariff low.

(b) The Commission may take an appropriate decision for extending agricultural

tariff to bamboo clusters.

(c) PPAs are binding in nature. GRIDCO had moved OERC for disapproval of

some PPAs with the hope that such disapproval would strengthen its case with

MoP for surrender of those high cost PPAs. However, MoP has not agreed for

permanent surrender of the PPAs; rather some PPAs have been temporarily

allocated to other states, which needed that power. Hence fixed cost of all PPAs

signed by GRIDCO needs to be provided to ensure financial viability of

GRIDCO.

(d) In the matter of adequate coal supply to Vedanta for availing full entitlement of

power as per PPA, GRIDCO is being advised to take necessary action.

(e) OTS cost of KBUNL and Ash transportation costs of NTPC needs to be

recognized and provided for as it has already been paid. BSP of 3 DISCOMs

namely, TPCODL, TPNODL & TPWODL may be increased as thought prudent

by the Commission, to the extent not to increase RST during FY 2023-24.

Remaining unrealized cost may be recognized as Regulatory Asset of GRIDCO

to be recovered during subsequent years. The RST for FY 2023-24 may not be

74

increased from present level.

(f) Government cannot provide any support for smart meters. OERC may consider

recovery of the Smart Meter cost over an extended period. The back-end

infrastructure for smart metering may be allowed in the CAPEX of DISCOMS.

(g) Interest burden of GRIDCO needs to be fully recognized in its ARR. The reason

advanced by OERC for not recognizing the interest cost of loans incurred

beyond 2015-16 is not reasonable. On the other hand, Government has been

supporting GRIDCO through various means. State Govt. has provided soft loan

of Rs.700 crore to GRIDCO during FY 2022-23. Another Rs.700 Cr. of soft

loan is proposed to be provided during FY 2023-24. State Govt. has also

converted Rs.2,039.39 Cr. of loan to equity in FY 2021 -22.

(h) As intimated vide this Department letter No. 3333 dated 24.03.2021, Govt. has

agreed to extend the status-quo on up- valuation of assets of OPTCL, Generators

and other licensees till FY 2025-26.

(i) Commission would have taken note of the submissions made by the

Department’s representatives during public hearings as well as SAC meeting.

Hence. it is not necessary to provide further details in this regard, especially it is

requested that necessary enabling provisions be made in the ARR/RST orders

for giving effect to various provisions of RE Policy, 2022.

Also the following specific suggestions may kindly be considered.

(j) The cold storages may be promoted through concessional tariff. Drinking water

supply system maintained by the Gram Panchayats need to be charged at a lower

tariff. Commission may consider reduction of 6% supervision charges for Govt.

funded projects as the investments made by Govt. ultimately helps in

strengthening the distribution infrastructure. Government educational

institutions consume power mostly during the day time. Until ToD tariff is

implemented for them, they may be charged at a concessional tariff.

(k) Reference is invited to Letter No-11894 dt.03.12.2022 & 11896 dt.03.12.2022

of Energy Department. The Commission is requested to consider the suggestion

for creation of material bank for restoration of network damaged by natural

calamities.

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F. OBSERVATION AND DIRECTION OF THE COMMISSION (PARA 72 TO 249)

New Tariff Regulations

72. The Distribution system of Odisha has reached a unique stage of development. The

responsibility of distribution of power has been entrusted / vested to four (4) DISCOMs

(TPCODL, TPNODL, TPWODL, and TPSODL) and 51% of the equity in all the four

DISCOMs has been off loaded in favour of TPCL through four vesting orders issued

under Section 21 of the Electricity Act, 2003. The vesting orders have imposed certain

conditions on the new DISCOMs and they are duty bound to follow the same. Such

conditions are like AT&C loss trajectory, and infusion of capex etc. In the meantime,

the Commission has notified Odisha Electricity Regulatory Commission (Terms and

Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations,

2022 on 20.12.2022. DISCOMs have filed their applications under this Regulation

which has been notified under Section 61, 62 and 86 read with Section 181 of the

Electricity Act, 2003. We shall dispose of the present applications of DISCOMs which

includes ARR & Tariff application, Truing up application and approval of Business

Plan application under the provisions of said Regulation. Similarly, the Open Access

related applications of DISCOMs shall be disposed of under OERC (Terms and

Conditions of Intra-state Open Access) Regulations, 2020.

Truing up

73. The Commission has carried out Truing up exercise in this order for the period 2020-21

(3 months/10 months) and FY 2021-22 based on the audited accounts. This is the

second year of operation after privatization. The Truing up of account helps the

Commission to factor in past regulatory surplus or gap in the regulatory account of the

year under consideration. This, in turn, helps the Commission to arrive at the ARR of

the ensuing year. The Truing up of accounts before FY 2020-21 has no impact on the

present ARR for FY 2023-24 of the DISCOMs. This is because any Regulatory surplus

or gap for the years prior to FY 2020-21 shall be transferred to the Special Purpose

Vehicles (SPVs) which was created to retain the liabilities of erstwhile DISCOMs. It is

pertinent to mention that three (3) new DISCOMs (TPCODL, TPWODL, TPSODL)

came into existence during FY 2020-21, 4

th

DISCOMs (TPNODL) took the

responsibility in April 1, 2021 and these DISCOMs are free from liabilities of the past

barring few as per Section 21 of the Electricity Act.

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Sales Forecast, Normative Loss, Input Energy and Power Purchase Cost

74. The ARR and tariff applications of DISCOMs are to be considered under New OERC

(Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)

Regulations, 2022 (OERC Wheeling & RST Regulations, 2022) framed under Section

61, 86 and 181 of the Electricity Act, 2003 and respective vesting orders issued under

Section 21 of the said Act.

75. The DISCOMs have been advised for segregation of their cost and revenue into

wheeling business and retail supply business for approval of the Commission under

Regulation 2.5 of OERC Wheeling & RST Regulations, 2022. The said Regulations

2022 provides for segregation of accounts into wheeling business and retail supply

business within one year of notification of OERC Wheeling & RST Regulations, 2022.

The wheeling charges have to be determined on the basis of segregated accounts of

wheeling business. Regulation 2.5.2 of the said Regulations provide the allocation

matrix for segregation of accounts into wheeling business and retail supply business till

the licensees submit audited segregated accounts for wheeling and retail supply

business. The Commission has approved the allocation matrix as per the provisions

under OERC Wheeling & RST Regulations, 2022.

76. The tariff design exercise carried out by the Commission is a balancing act in which

revenue is matched with expenditure in such a way that tariff for cross-subsidised

categories and cross-subsidising categories remains within ±20% of the average cost of

supply as per Clause 8.3 of National Tariff Policy. Ultimate objective is that tariff

should be reflection of cost of supply. EHT and HT consumers are cross subsidizing LT

consumers of the State. Further, Regulation 5.15.2 of OERC Wheeling & RST

Regulations, 2022 provides that the Commission shall endeavor to reduce gradually the

cross subsidy between the consumer categories with respect to the Average cost of

Supply. Also the Commission is guided by the provisions under Regulation 5.15.3

wherein the Commission has to ensure that the tariff progressively reflects the cost of

supply of electricity. The Commission has determined the category wise tariff

considering the above provisions under OERC Wheeling & RST Regulations, 2022.

77. As per the Regulation 2.1 of OERC Wheeling & RST Regulations, 2022, the DISCOMs

have to submit separate petition for approval of long-term Business Period spanning

over the control period containing Sales and demand forecast for each consumer and

sub category, Distribution loss trajectory and collection efficiency trajectory, Power

Procurement Plan Capital investment Plan etc. of distribution licensees.

77

78. Due to time constraint, the DISCOMs have submitted the Business Plan for the FY

2023-24 only through their petitions which are registered as Case No. 11 of 2023

(TPCODL), Case No. 10 of 2023 (TPNODL), Case No. 12 of 2023 (TPSODL) and

Case No. 13 of 2023 (TPWODL). The licensees have requested the Commission to

grant some more time for filing of Business Plan for the balance period of the present

control period i.e. FY 2024-25 to 2027-28.

79. The Commission has reviewed the application of Business Plan of licensees and found

it appropriate to approve the ARR for FY 2023-24 (i.e. first year of the present control

period). Considering the prayers made by the licensees. The Commission directed them

to submit the business plan for the balance control period by 30th April 2023.

80. The Commission has scrutinized the sales estimate submitted by licensees for FY 2023-

24 as per the provisions in Regulations 5.3.4 of OERC Wheeling & RST Regulations,

2022 as reproduced below :

“The Commission shall examine the forecasts for their reasonableness based on growth

in the number of consumers, pattern of consumption, losses and demand of electricity in

previous years and anticipated growth in the subsequent year(s) and any other factor,

which the Commission may consider relevant and approve the sales forecast with such

modifications as deemed fit. The Distribution Licensee(s) shall develop a robust

database of all consumers with desired particulars regarding their demand to facilitate

the forecasting process in accordance with the direction given by the Commission”.

81. The Commission has reviewed the sales data (voltage -wise) for FY 2023-24 submitted

by the licensees and observed that the licensees have projected energy sales for FY

2023-24 based on actual sale recorded during FY 2021-22, and revised estimate for FY

2022-23. The Commission has observed that there has been a significant difference in

EHT and HT sales projected by the licensees for FY 2022-23 in comparison with that

approved of by the Commission for FY 2022-23 in last tariff order. The Commission

has directed the licensees to submit the actual monthly sales data for FY 2022-23 and

reasons for higher HT and EHT sales for FY 2022-23. Similarly, the information about

new and additional load under HT and EHT category for FY 2023-24 was also sought

from the licensees. The Commission has considered the submission of the licensees

while approving the sales for FY 2023-24.

78

82. The Commission has estimated the energy sales for FY 2022-23 considering the actual

average monthly sales during nine months of FY 2022-23 and prorating the same for

whole twelve months excluding Tripartite Agreement (TPA) sales. The Commission

has noted the additional sales proposed by the licensees for FY 2023-24 in comparison

to revised projection of FY 2022-23. The Commission has estimated the sales of

different category of consumers (EHT, HT, LT) for FY 2023-24 considering additional

sales quantum proposed by the licensees.

The details of approved sales and estimated sale of licensees for the FY 2023-24 are

given in the Table below.

Table- 18

Approved sales for FY 2023-24 (MU)

Monthly

Avg.

consumption

(April 22 to

December

22)

Estimate

for FY

2022-23

by

prorating

the

monthly

average

Licensees

Estimate for

2022-23

Licensees

Proposal

for ARR

2023-24

Additional

sale

projected

by

Licensee

for 2023-

24 over

2022-23

OERC

estimate

for 2023-24

OERC

Approval

for 2023-

24

1 2= 1 x12 3 4 5 =4-3 6 = 2 + 5

7 =

Higher of

4 & 6

TPCODL

EHT

129.76

1,

557

.09

1,589.002

1,858.003

269.00

1,826.09

1,858.003

H.T

151.89

1,82

2.71

1,7

83.996

1,908.000

124.00

1,946.71

1,946.712

LT

381.38

4,57

6

.51

4

,414.997

4,

902.176

487.18

5,063.69

5,063.690

Total (MU) 663.026

7,956.31

7,787.996

8,668.180

880.18

8,836.49

8,868.405

TPNODL

EHT

207.13

2,

4

85.50

2,497.221

2,953.300

456.0

8

2,941.58

2,953.30

H.T

51.76

621.13

632.8

10

685.584

52.77

673.91

685.58

LT

198.65

2,383.80

2,342.

4

42

2,6

07.759

26

5.32

2,649.11

Total (MU) 457.536

5,490.43

5,472.473

6,246.643

774.17

6,264.60

6,288.00

TPWODL

EHT

272.30

(Excl. TPA

Sale)

3,267.54

2,861.000

(Excl. TPA

Sale)

3,045.000

(Excl. TPA

Sale)

84.00

3,351.54

(Excl. TPA

Sale)

5,351.54

(Incl. TPA

Sale)

H.T

175.15

2,101.81

2,02

5.000

2,123.000

98.00

2

,199.81

2,199.81

LT

258.61

3,103.37

3,085.000

3,314.000

229.00

3,332.37

Total (MU) 706.059

8,472.71

10,071.000

10,482.000

411.00

8,883.71

10,883.71

TPA Sale

-

21

00.000

2,000.000

TPA Sale

2,000.00

TPSODL

EHT

58.91

70

6.95

619.335

642.472

23.14

730.09

706.95

H.T

33.86

406.34

367.222

391.294

24.07

430.42

LT

181.1

3

2,173.56

2,3

85.0

96

2,552.775

167.68

2,341.24

2,552.77

Total (MU) 273.904

3,286.85

3,371.653

3,586.541

214.89

3,501.74

3,690.14

ALL ORISSA

EHT

668.09

8,017.08

9,666.558

10,498.775

10,869.79

H.T

412.67

4,951.99

4,809.029

5,107.879

5,262.52

LT

1,019.77

12,237.23

12,227.536

13,376.710

13,597.95

Total (MU) 2,100.53

25,206.30

26,703.122

28,983.364

29,730.26

79

83. For projecting the power purchase quantum, Regulations 5.4 of OERC Wheeling &

RST Regulations, 2022 mentions that power purchase quantum would be based on

energy sales and calculated distribution loss derived from the approved AT&C loss i.e.

bottom of approach is to be followed. The Commission has already approved the

AT&C Loss trajectory in the corresponding vesting orders of the licensees. The AT&C

losses proposed by Licensees and approved by the Commission for all four DISCOMs

are given in the Table below:

Table-19

Proposed and Approved Loss of DISCOMs

FY 2021-22

(Actual)

FY 2022-23

Approved

FY 2022-23

Estimated by

licensees

FY 2023-24

Proposed by

licensees

FY 2023-24

(Approved) by

the

Commission

TPCODL

Distribution Loss

23.62 %

22.93 %

22.99 %

21.19 %

21.21 %

Collection Efficiency

98.06 %

9

9.00 %

99

.00

%

99.00 %

AT and C Loss

25

.10

%

23.70 %

23.76 %

21.9

8 %

22.00 %

TPNODL

Distribution Loss

18.4

0 %

18.35 %

16.25 %

Collectio

n

Efficiency

94.20 %

99.00 %

AT and C Loss

23.13 %

19.17 %

1

7.09 %

17

.09

%

TPWODL

Distribution Loss

21.02

%

1

9.60 %

18.12 %

18.11 %

18.08 %

Collection Efficiency

92.67 %

99.0

0 %

97.20 %

99.00 %

AT

and C Loss

26.

8

0 %

20.40 %

20.41 %

18.93 %

18.90 %

TPSODL

Distribution Loss

23.93 %

25.00 %

24.9

9

%

25.

00

%

Collection Efficiency

89.14 %

99.00

%

9

4.00 %

94.00 %

99.00 %

AT and C Loss

32.19 %

25.75 %

29.50 %

29.4

9 %

25.75 %

ODISHA

Distribution Loss

21.76 %

21.25 %

22.02 %

19.58 %

Collection Efficiency

94.23 %

99.00 %

95.40 %

98.38 %

99.0

0

%

AT

&C

Lo

ss

26.28 %

22.04 %

25.61 %

20.88 %

2

0.3

9 %

84. Following the provisions given in Regulations 5.4 of OERC Wheeling & RST

Regulations 2022, the Commission has approved the power purchase quantum for each

licensee by considering the approved sales and approved distribution loss. Accordingly,

the approved power purchase quantum and sales for FY 2023-24 of each licensee are

given below.

Table-20

Purchase and Sale (proposed and approved by the Commission) for FY 2023-24

TPCODL TPNODL TPWODL TPSODL ODISHA

Propose

d

Appr

ov

ed

Proposed

Approved

Propos

ed

Approved

Propose

d

Appro

ved

Proposed

Approved

Purchase

10999.00

112

56.00

7458.90

7508.00

12800.00

13286.0

0

47

81.

27

49

20.00

36039.17

36970.00

Sales

EHT

1858.00

1,858.003

2953.30

2,953.30

5045.00

5,351.54

6

42.00

706.9

5

10,498.78

10,869.

79

H

T

1908.00

1,946.712

685.5

8

685.58

2123.00

2,199.81

391.00

4

3

0.42

5

,

107.88

5,262.52

LT

4902.00

5,063.690

260

7.76

2,649.11

3314.00

3,332.37

2552.77

2,552.77

13,376.71

13,597.95

Total

Sales

8

,

668.00

8,868.405

6

246.64

6,288.00

10482.00

10,883.71

35

86.00

3,690.14 28,983.37 29,730.26

80

Revenue Assessment

85. Based on normative parameters like distribution loss, AT&C loss, sales and collection

efficiency as approved in this Retail Supply Tariff order of the Commission and billing

figure for FY 2022-23, the Commission have estimated the revenue for FY 2023-24 for

the DISCOMs as follows:

Table – 21

Revenue of DISCOM Utilities for FY 2023-24

(Rs. Crs.)

TPCODL

TPNODL TPWODL

TPSODL

EHT

1218.12

1813.86

3286.02

450.78

HT

13

3

9

.

0

6

459.07

1350.95

286.82

LT

261

3.

51

1286.09

1615.02

1253.

17

Total 5170.68 3559.02 6251.99 1990.77

86. Tariff Related Issues

Objectors have raised certain issues which are discussed below:-

 Non-truing up of ARR of erstwhile DISCOMs

One of the objectors stated that prior to the re-privatisation which started from FY

2020-21, the erstwhile DISCOMs had huge revenue surplus. The truing up exercise has

not been carried out since 2014. The cash surplus available with those erstwhile

DISCOMs should be passed on to the consumer. We examined the objection. We find

that the licenses of erstwhile DISCOMs i.e. NESCO, WESCO & SOUTHCO were

cancelled w.e.f. 04.03.2015. After that the Utilities of the DISCOMs were being

managed through a scheme under Section 22 of the Electricity Act along with CESU.

Subsequently the power Utilities were vested with new Licenses where TPCL holds

51% of the equity. During the period when Utilities were being managed through a

scheme and after the year 2014 they had not filed any true up application with the

Commission. Rather they had challenged the tariff orders of the Commission before

Hon’ble APTEL stating that the revenue allowed to them in the successive tariff orders

by the Commission was not sufficient to manage their expenditure. Hon’ble APTEL

had accepted their contention and the order of the Hon’ble APTEL has been appealed

before the Hon’ble Supreme Court by the Commission. The matter is sub-judice with

Apex Court. Had the accounts of erstwhile DISCOMs were trued up as per the

directives of Hon’ble APTEL then they would have deficit in their account. There was

no question of any surplus being passed on through subsequent ARR of DISCOMs.

However, the truing up their account will be subject to the final disposal of the matter

81

before Hon’ble Supreme Court. The erstwhile Utilities were vested with new

DISCOMs (Licensees) under Section 21 of the Electricity Act, 2003 which states that

the Utility shall vest in the purchaser as the case may be free from any debt, mortgage

or similar obligation of the Licensee or attaching to the Utility. Pursuant to that the

Commission in the vesting orders of the Utilities has clarified that treatment of true up

of past period i.e. for period prior to taking over or effective date, if any, shall be done

by the Commission in a manner that will not cause any financial gain or loss to the new

DISCOMs. Therefore, it is incorrect to state that had the truing up been completed for

the past period prior to taking over of new DISCOMs, any surplus would have been

passed on to the consumers in terms of reduction in tariff. Regarding truing up of the

period after the taking over the new DISCOMs, they have filed their truing up

applications upto FY 2021-22 (for the period for which audited account is available) as

per Regulation in force with the Commission.

 Higher AT&C Loss

One objector has stated that the AT&C losses of Odisha DISCOMs are higher than

national average and also are higher than private DISCOMs of the country. He further

points out that the Commission has approved higher losses year on year basis and

failuers of the DISCOMs are being transferred to the consumers in terms of higher

tariff. He has requested the Commission to review the AT&C loss target given in the

vesting order. In this matter we want to state that reduction of AT&C loss was a

component in the RFP documents when the privatisation took place. As per the RFP

documents the bidders were required to provide AT&C loss trajectory for first five

years or 10 years of operation. It was also binding on them to reduce the AT&C loss

below a particular level in the third and fifth years of operation. These are the

conditions of vesting. The Commission also in the vesting order has given a 10 year

AT&C loss trajectory for tariff determination which in initial years of taking over is

less than the AT&C loss commitment by the DISCOMs. Therefore, the DISCOMs

though are unable to achieve AT&C loss target for tariff determination still bear the

differential loss between actual AT&C loss and AT&C loss set by the Commission for

tariff determination. The DISCOMs will invest a huge sum of around Rs.5,640 Crores

in the coming five years to reduce the AT&C loss and for improvement in quality of

supply. Since the actual AT&C loss level at the time of taking over was high, therefore,

DISCOMs will take time to reduce their AT&C loss to a desired level after investment

82

in network upgradation. Hence, it is incorrect to say that the Commission has given

higher AT&C loss target to DISCOM to achieve. Vesting order is a Judicial order and

appealable in the higher forum. Any review of that order requires certain procedure and

we cannot visit the same in the present order.

 Normative HT Loss

Some objectors have pointed out that the normative HT loss of 8% adopted by the

Commission is in the higher side. After incurring huge expenses in CAPEX it should

have been reduced. We want to state that after adoption of new Wheeling & Retail

Supply Tariff Regulation, 2022 the Commission has changed the procedure for

determination of the quantum of power purchase requirement. So normative loss of 8%

has lost its relevance as far as power purchase requirement is concerned. The

Commission has directed the licensees to complete the energy audit in HT segment

early and find out actual HT loss. Once energy audit is completed DISCOMs will be

required to reduce HT loss, if required by technical intervention.

 kVAh billing and issues of PF incentives

Some objectors have pointed out that DISCOMs purchase power at BSP which is

charged on kWh basis. But HT and EHT consumers are paying in terms of kVAh.

Therefore, they have requested to re-introduce kWh billing for HT and EHT consumers

along with re-introduction of PF incentive and penalty. It is to be pointed out that kVAh

billing is a simplified method and takes care of both power factor incentive and penalty.

In case of higher power factor, kVAh billing will be less and will be nearer to kWh

billing. The consumers should try to improve the power factor which will reduce

technical loss of the DISCOMs and will also reduce the billing of the consumer. The

BSP billing and consumers billing are two different concepts. In the BSP billing

meeting the generation cost and transmission charges are of prime importance. But in

the consumer billing in addition to above management of voltage at different locations

of the network and reduction of line loss are also important. Unless drawal in kVAh are

captured properly the tariff cannot be said to be an efficient one. Therefore, in the first

phase, the Commission has introduced kVAh billing for HT and EHT consumers

similar in line with many other States. It is also to be added that tariff determination is a

ARR balancing mechanism where all the prudent expenditures of DISCOMs are

balanced with the revenue collected from the consumers. So, the DISCOMs do not get

unnecessarily enriched by paying BSP in kWh terms and charging consumers in kVAh

83

term. Since power factor of each DISCOM has crossed 95%, the gap between kWh and

kVAh is also narrowing down over the time.

 Separate category and tariff for Railways

Electricity Act, 2003 in its preamble mandates the Commission to rationalise tariff.

Similarly, Section 61 (b) of the Electricity Act states that the generation, transmission,

distribution and supply of electricity are to be conducted on commercial principle. This

means the cost to serve a unit of electricity is to be recovered from the user.

Accordingly, the Commission has tried to rationalise tariff by putting all the consumer

categories into three voltage levels. This is because the cost to serve a particular voltage

level is nearer to the cost to serve to a particular consumer category in that voltage

category. Therefore, the tariff of any category of consumer at a particular voltage level

has been made more or less equal irrespective of category in that voltage level except

LT consumers. The Railway traction being an EHT consumer has been allotted a tariff

equal to other EHT consumers since cost to serve railways at EHT is similar to the cost

of service of other categories of consumer at EHT level. We are aware of the nature of

traction load which operates below 50% load factor. Therefore, we are allowing rebate

of 25 paise per unit to Railway Traction load for the FY 2023-24. The issue of feed

extension raised by DISCOMs has been elaborately dealt by the Commission in the past

orders. In this regard our Retail Supply Tariff order for FY 2007-08 may be referred as

under

“5.25.5 Railways pleaded that payment of maximum demand charges from each of

traction substation could be replaced by a system of simultaneous maximum demand

recording in contiguous substation. It may be mentioned that the railway traction

supply is given by different licensees from the EHT network of the OPTCL and billing is

done for the supply made against agreements executed between the supply licensees

and the consumer. Since separate agreements are executed for individual traction

loads, it will not be possible to adopt SMD for billing on the basis of simultaneous

maximum demand recorded in contiguous substations.”

The Railway has executed different agreement for traction sub-stations and extension of

supply from one sub-station to other is not permissible under the Regulation. This will

create problem for the traction section which are near the interface of two DISCOMs. In

that event, of feed extension from traction sub-section situated in one DISCOM to a

traction sub-station in other DISCOM will add to the SMD and energy drawal of the

first DISCOM. Since DISCOMs are different and their energy & SMD are fixed by the

Commission separately for tariff determination, it cannot be interfered in this manner.

84

However, Railways is advised to enter into special agreement with DISCOMs under

Regulation 139 of the OERC Distribution (Conditions of Supply) Code, 2019 to avail a

special tariff and condition of supply.

 Allotment of Industrial Tariff to the Telecom towers

Reliance Jio Infocom has requested that their tariff for availing power supply to the

telecom towers be made equal to industrial tariff instead of commercial tariff. The

industrial category has been defined in the OERC Supply Regulations, 2019. The nature

of activities associated with the telecom towers is different from that of industry as

defined in the Regulation. Therefore, it is not possible include them under LT industrial

tariff category.

 Auctioning of Distribution Utilities in favour of Tata Power

One of the objectors states that the Utilities have been auctioned at throwaway price. He

pointed out that in case of sale, it becomes necessary to recast the balance sheet of

Utility basing on which the equity is determined for sale purposes. We bring to the

notice of the objectors about the provision under Section 20(1)(a) of the Electricity Act,

2003, where it states as follows:

“(a) the appropriate Commission shall invite applications for acquiring the utility of

the licensee whose licence has been revoked and determine which of such

applications should be accepted, primarily on the basis of the highest and best

price offered for the utility;”

Accordingly, the Commission had launched the RFP which included the last audited

balance sheet of the Utilities. The Commission had also fixed a reserve price above

which the highest price quoted was to be accepted. This proves that the investors must

have taken into consideration the balance sheet of erstwhile Utilities while quoting the

purchase price.

 Capital Fixed Assets and DISCOMs plan for CAPEX

One of the objectors points out that as per PFC report, the per capita fixed assets of

DISCOMs is one of the lowest in India. He urges that the Government assets should

immediately be included in the Books of Accounts of DISCOMs. It is to be mentioned

here that the majority of the Government assets is yet to be transferred to the

DISCOMs. DISCOMs have only right of use of those assets for which a repair and

maintenance cost is allowed to them by the Commission. This has been clearly

mentioned in the vesting order of the Commission which states that in the event that the

85

Government assets are transferred to DISCOMs in lieu of equity investment by

GRIDCO, the same shall be allowed in fixed assets base for determination of tariff.

Therefore, Government assets shall be included in the Books of Accounts of DISCOMs

in terms of equity contribution of GRIDCO as and when required. In view of this,

comparing Odisha Distribution Assets in the Books of Accounts with other States is not

fair.

 Electricity bill format, content and demand charges basing on recorded

demand

Some objectors submit that the billing is done in English and recorded demand is not

reflected in the bill. In this context, the Commission has been consistently urging upon

the DISCOMs even before privatisation to prepare bill both in English and Odia. It is

observed that they have started billing in Odia in some places. DISCOMs have

informed during the hearing. It is expected that it will cover the whole State gradually.

Regarding the issue of billing based on recorded demand, we reiterate our last tariff

order for FY 2022-23 at Schedule -B which states that in case of installation with static

meter/meter with provision of recording demand, the recorded demand rounded to

nearest 0.5 KW shall be considered as the contract demand requiring no verification

irrespective of the agreement. Therefore, for the purpose of calculation of Monthly

Minimum Fixed Charge (MMFC) for the connected load below 110 KVA, the above

shall form the basis.

We direct DISCOMs to obviate the non-recording of actual demand in the bill.

However, with use of smart meter which is in the offing, this problem will be resolved.

 Billing vrs. Recovery by DISCOMs

One of the objectors has submitted that the recovery of the licensee is more than the

billing. The DISCOMs have recovered more than the tariff determined by the

Commission. He has estimated that the DISCOMs have collected Rs.2604.06 Crore

from the consumers during the tariff period from FY 2021-22 to 2022-23. We mention

here that the DISCOMs are strictly directed to bill the consumers in the tariff rate

determined by the Commission from year to year. If any DISCOM has billed the

consumer over and above the tariff determined by the Commission, then it will become

a billing dispute. The objectors should raise this issue before the DISCOMs and get

their bills rectified as per the law. In addition to that, the Commission has mechanism to

86

adjust regulatory surplus / deficit in the ARR of DISCOMs in subsequent years through

truing up mechanism.

 Calculation of Cost of Supply

One of the objectors has pointed out that the per unit cost of supply to the consumers

should take into consideration the miscellaneous revenue other than the tariff recovered

by the DISCOMs. In this regard, we reiterate our earlier RST order in FY 2022-23

below and clarify that miscellaneous revenue is extraneous to the core operation of the

DISCOMs and can be utilized for many other purposes not necessarily for supplying

power to the consumers.

“70. One of the Objectors has stated that miscellaneous revenue should be accounted

for while finding out average cost of supply for the State. The Cost of Supply is

the cost incurred by the utility to supply one unit of electricity at its consumer’s

metering point and is a crucial part of the tariff setting process. The purpose of

computation of Cost of Supply (CoS) is to apportion all costs required to serve

consumers of different categories in a fair and an equitable manner giving

proper price signals and identifying subsidy/cross-subsidy among consumer

categories for developing an appropriate policy and a regulatory way forward.

Tariff setting is a revenue balancing method. The revenue requirement of

DISCOM is met through tariff recovered from the consumers. The revenue can

be of two categories i.e. revenue recovered from the consumer for sale of power

and miscellaneous receipt from other activities of DISCOMs. The revenue

requirement to be earned through tariff will be less if miscellaneous receipt is

given credit as a part of the revenue earned. This in turn will reduce tariff to be

charged to the consumers. The cost of supply is not necessarily equal to average

tariff. This is because of miscellaneous receipt shall be utilised to meet the

revenue requirement which would have otherwise been recovered from the

consumer through tariff.

 Employee cost and recruitment of Staff

Some objectors have pointed out that the employee expenses has been increasing due to

higher salary offered to the newly recruited employees. The out-sourced personnel

should also be considered while estimating employees for one thousand consumers. In

this regard, we point out that the employee cost of the DISCOM is regulated as per the

provision in Regulation 3.9.10 of OERC (Terms and Conditions for Determination of

Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 and it has nothing to do

with individual employee cost. The relevant provision is reproduced below:

“3.9.10.The expenses for the employees recruited after Effective Date shall be

determined based on the formula shown below:

EMP

n

= EMP

n-1

x (1+Index

Escn

)

87

where,

EMP

n:

Employee Cost of Distribution Licensee for the ensuing year;

EMP

n-1:

Approved Employee Cost of Distribution Licensee for the year

preceding ensuing year;

Provided that for first year of the control period EMPn shall mean employee

expenses as approved by the Commission for the first year of the Control Period

in the Business Plan;

Index

Escn

= CPIn

where,

‘CPIn’ (expressed in %) means the average yearly inflation of Consumer Price

Index (Industrial workers) over the years for the nth year.”

Similarly, the provision for number of employees per one thousand consumers has no

relationship with out-sourced personnel, who have been deployed for a particular work.

However, the DISCOMs take into account the expenditure in this regard during

finalisation of employee cost only as per the Regulations.

 Billing of HT consumers under LT Category

One of the objectors has pointed out that HT consumers in case of <70 KVA CD are

billed under LT category. Those consumers own the transformer. Therefore, it is wrong

to add transformer loss in their bill. We agree with the contention that in that case,

transformer loss should not be added in the bill because transformer loss is built in the

LT tariff. Objector also states that the large industries >=110 KVA drawing power at

LT have been paying demand charges at Rs.200 per month per KVA since many years.

Their demand charges should be made equal Rs.250 per KVA similar to HT industries.

We have examined the issue and found that LT large industry consumer pays higher

energy charge than that of their HT counterpart, therefore, the demand charges has been

consciously kept equal to other categories of consumers in LT having CD >=110 KVA

as a part of the tariff rationalisation measures.

 Demand Charges for HT Medium category consumers.

Presently, HT Medium Industries (CD >70 <110 KVA) are paying demand charges

@Rs150/KVA. For past several years some of the DISCOMs have been submitting that

the said demand charges should be enhanced to Rs.250/KVA. This matter has already

been dealt in Para 331 of Retail Supply Tariff order for FY 2020-21. The load demand

of such industry(ies) fluctuates throughout the year and they cannot be compared with

large industrial consumer. Therefore, the Commission has been consciously keeping

88

demand charges low for these categories of consumers to encourage small and medium

category of MSME industries in the State.

 Monthly Minimum Fixed Charge (MMFC) for LT category of consumers

This matter has already been dealt in Para 332 of Retail Supply Tariff Order for FY

2020-21. Some of the DISCOMs want that uniform principle/practice should be

followed for all LT category of consumers in respect of MMFC including additional

KW. It is clarified that this has been done purposefully to give some relief to

agriculture, public lighting and small industry consumers. As such, the revenue earned

from this section of consumers is very low and will have minimal impact on the overall

revenue of the DISCOMs.

 Additional Rebate of 4% to LT category of consumers for Digital Payment

Since Digital rebate is yielding good result with increase in number of digital payment,

DISCOMs have requested for enhancement in rebate from existing 3% to 4% for the

LT domestic and General purpose consumers if the bill is paid in full. We agree with

the proposal of DISCOMs and direct that 4% rebate over and above normal rebate shall

be allowed on the bill to the LT domestic and single phase general purpose category of

consumers only over and above all the rebates, if such consumer would pay the entire

amount

 Special tariff for drawl of RE power with premium rate

In order to promote RE in the State and combat GHG emission the Commission in FY

2022-23 Retail Supply Tariff Order had introduced Special tariff for interested

consumers to get a Green Consumer Certification by drawing 100% green power from

the DISCOMs. For that purpose, they were to pay a premium of 50 paise per unit over

the normal tariff of respective consumer category. The DISCOMs have requested the

Commission to reduce the premium to 25 paise per unit and to simplify the procedure.

We direct that the consumer interested in getting Green Consumer Certification shall

pay a premium of 25 paise per unit over the normal tariff for full drawal of their

requirement.

There are some obligated entities, particularly industries having CGPs who are required

to fulfil their Renewable Purchase Obligation (RPO). Such entity can purchase their

obligated quantum of renewable power from DISCOMs by payment of premium of 25

paise per unit over and above the normal tariff available to them. However, Green

89

Consumer Certification cannot be issued to such CGP as their 100% electricity

consumption is not from renewable sources. The Commission has directed GRIDCO to

allocate the total drawal of Renewable Energy from different RE sources among the

DISCOMs as approved in GRIDCO’s BSP order. While issuing Green Consumer

Certification and selling renewable power to industries having CGPs for meeting their

RPO, the DISCOMs shall operate within the green power allotted to them for the FY

2023-24 in GRIDCO’s BSP order.

 Special Tariff for Industry having CGP for incremental energy drawal

above 80% load factor

The Commission observed that some surplus power may be available with GRIDCO

after meeting the State demand for the FY 2023-24. GRIDCO can sell such surplus

power to the industries having CGP with Contract Demand (CD) above 20 MW through

a tripartite agreement executed between GRIDCO, Distribution Licensee and the

Industry concerned. The tariff for such sale of incremental power (beyond 80% load

factor) to the industry having CGP with CD should be Rs.5.00/kVAh for FY 2023-24

provided that the drawee entity operates above 80% load factor and there shall be no

overdrawal penalty. For sale of such intermittent incremental surplus power, GRIDCO

shall get Rs.4.55/kWh, OPTCL shall get normal transmission charge of Rs.0.24 per

kWh and DISCOMs shall keep the balance amount as margin, out of the fixed price of

Rs.5.00 per kVAh.

Similarly, any industry having CGP with CD up to 20MW willing to avail power from

DISCOMs upto double the CD, shall be allowed to draw power without payment of

overdrawal penalty. For this purpose, the industry has to operate at 80% of CD

(minimum) for the entire month. The applicable charges for incremental energy drawl

(kVAh) beyond CD shall be Rs.5.00 per kVAh. Industries availing this benefit shall not

be permitted to avail benefit under any other schemes. However, the DISCOMs shall

not exceed their approved SMD during that period. The DISCOM must ensure that for

such overdrawal, the distribution system is not overloaded and no load shedding is

imposed during that period. The concerned DISCOM must take prior permission of

GRIDCO for providing this concession to consumer. Whenever, GRIDCO will have

surplus power for a particular period, then it will give in-principle approval to the

concerned DISCOM to draw power for selling to those industries.

90

The Issue of DPS for LT Domestic, LT General Purpose and HT Bulk Supply

Domestic Consumers

87. The issue of levy of DPS to above categories of consumers was raised by DISCOMs

during hearing. The Commission thoroughly scrutinised the issue. It is found that levy

of DPS is acting as a hurdle for small consumers in resolving their disputed bills. The

revenue impact of DPS for these small consumers is also not substantial. Therefore, in

order to resolve bill disputes quickly, the Commission decides to abolish DPS for LT

Domestic, LT General Purpose and HT Bulk Supply Domestic Consumers w.e.f.

01.04.2023.

Cross-subsidy in Tariff

88. Cross Subsidy has been defined in Clause 7.77 of the OERC (Terms and Conditions of

Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 which is

in conformity with para 8.3.2 of Tariff Policy and para 5.5.2 of the National Electricity

Policy. This is reproduced below:

“7.77 For the purpose of computing Cross-subsidy payable by a certain category of

consumers, the difference between average cost of supply to all consumers of

the State taken together and average voltage-wise tariff applicable to such

consumers shall be considered.”

89. According to above Regulation, cross subsidy is to be worked out based on the average

cost of supply to all consumers of the State taken together and average voltage-wise

tariff applicable to such consumers. The average cost of supply for Odisha for FY 2023-

24 is follows:

Table – 22

Average Cost of Supply (per Unit) FY 2023-24

(Rs. In Crore)

Expenditure

2023-24

(Approved)

Cost of Powe

r Purchase

12189

.

00

Tran

smiss

ion Charg

e

8

87

.

28

SLDC Cha

rge

5.

7

2

Total cost of Power Purchase, Transmission and SLDC Charge(A) 13082.00

Net Employee co

sts

2

43

9

.

1

6

Repair

and Maintenanc

e

9

2

8

.

28

Administrative an

d General Expenses

532.92

Provisi

on for Bad and Doubtful De

bts

16

9

.

72

De

preciation

256.29

Interest Chargea

ble

to Revenue including Interest on S.D

4

7

1

.

2

5

Sub

-

Total

4

7

97

.

6

2

91

Expenditure

2023-24

(Approved)

Less: Exp

enses cap

it

alised

98.78

Total Ope

ration and Maintenance and O

t

her Cost

4656.46

Return on Equ

ity

225

.0

8

Total Distribution Cost (B) 4881.54

Total Cost (A+B) 17963.42

A

pproved Saleable Units (MU)

2

9

,

7

30.

26

Average Cost (paisa per unit) 604.22

For the purpose of calculating average tariff, the estimated revenue realization from a

category (HT/EHT) and total sale of energy to that category have been taken into

consideration.

Average Tariff realization = (Total expected revenue realisation from a category of for

a category consumer as per ARR/Total anticipated sales of energy to that category as

per ARR)

The cross-subsidy calculated as per the above methodology is given in the table below:

Table - 23

Cross Subsidy Table for FY 2023-24

Year

Level of

Voltage

Average cost

of supply for

the State as a

whole (P/U)

Average

Tariff

P/U

Cross-

Subsidy

P/U

Percentage of

Cross-subsidy

above/below of

cost of supply

Remarks

(1) (2) (3) (4) (5) =(4)–(3) (6)=(5)/(3) (7)

2017-18

EHT

488.26

580.45

92.19

18.88%

The tariff

for HT

and EHT

categories

have been

calculated

based on

average

tariff of

that

category.

HT

581.

60

93.34

19.12%

LT

398.95

-

89

.31

-

18.29%

2018-19

EHT

489.47

576.88

87.41

17.86%

HT

579.18

89.71

18.

33%

LT

398.

72

-

90.

76

-

18.54%

2019-20

EHT

499.71

577.21

77.49

15.51%

HT

579.38

79.67

15.94%

LT

406.21

-

93.50

-

18.71%

2020-21

EHT

524.62

595.77

71.1

5

13.56%

HT

5

96.18

71.56

13.64%

LT

433.81

-

90.81

-

17.31%

2021-22

EHT

548.40

626.50 78.10 14.24%

HT

623.90

75

.49

13.77%

LT

466.07

-

82

.

33

-

15.01%

2022-23

EHT

587.77

654.61 66.84 11.37%

HT

640

.36

52.59

8.95%

LT

47

8.44

-

109.33

-

18.6

0

%

2023-24

EHT

604.22

622.71 18.50 3.06%

HT

652.90

48.

68

8.

06

%

LT

497.71

-

10

6

.

51

-

17.63

%

92

90. It would be noted from the above that the Commission, in line with the mandate of the

National Electricity Policy and Tariff Policy, has managed to keep cross-subsidy among

the subsidised and subsidising category of consumers in the State within ±20%. The

above cross subsidy is meant only for Retail Supply Tariff fixation in the State and is

applicable to all consumers (except BPL and Agriculture) and should not be confused

with Cross Subsidy Surcharge (CSS) payable by open access consumers to the

DISCOM(s). The Cross Subsidy Surcharge (CSS) is applicable only to open access

consumers which is discussed hereinafter.

Open Access Charges (Cross Subsidy Surcharge and Wheeling Charges)

91. The tariff for HT and EHT consumers for determination of cross subsidy surcharge has

been assumed at 100% load factor since open access drawal is made to utilise the full

quantum of the power so availed. The formula prescribed in Tariff Policy in Para 8.5.1

for determination of cross subsidy surcharge is as follows:

Surcharge formula:

S= T – [C/ (1-L/100) + D+ R]

Where:

S is the surcharge

T is the tariff payable by the relevant category of consumers, including reflecting the

Renewable Purchase Obligation

C is the per unit weighted average cost of power purchase by the Licensee, including

power purchase to meet the Renewable Purchase Obligation

D is the aggregate of transmission, distribution and wheeling charge applicable to the

relevant voltage level

L is the aggregate of transmission, distribution and commercial losses (expressed as a

percentage applicable to the relevant voltage level)

R is the per unit cost of carrying regulatory assets.

92. As in the previous year, the Commission accepts ‘C’ equal to BSP of respective

DISCOMs as explained above. Similarly ‘T’ is the tariff at 100% load factor including

demand charges for the respective voltage level. The wheeling charges ‘D’ is as

determined from the distribution cost approved for the FY 2023-24 and ‘L’ is assumed

8% at HT and nil for EHT since EHT loss is accommodated in transmission charges.

93

93. The determination of wheeling charges is independent of distribution voltage level i.e.

11 kV & 33 kV. The wheeling as per the OERC (Terms and Conditions for

Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 means

the operation whereby the distribution system and associated facilities of a Distribution

Licensee, are used by another person for the conveyance of electricity on payment of

charges to be determined under these Regulations. Therefore, Regulation does not

differentiate distribution system in terms of voltage level and includes both 33 kV and

11 kV network. Therefore, the Commission determines a single wheeling charge for 11

KV and 33 KV.

Based on the above, the wheeling charges and cross subsidy surcharges have been

determined as follows:

Table – 24

Wheeling Charges Approved for FY 2023-24

TPCODL

TPNODL TPWODL

TPSODL

Energ

y Handled at HT (MU)

9398.00

4

554.70

7934.46

4213.05

Net Distribution Cost (Rs. Crs.)

936.74

642.60

758.00

580.16

Wheeling Charge calculated for

2023-24 (Paise per unit)

99.67 141.09 95.53 137.71

Table - 25

Computed Surcharge for Open access consumer 1MW and above for FY 2023-24

DISCOM TPCODL

TPNODL

TPWODL

TPSODL

Surcharge for EHT Consumer (P/U)

242.90

212.90

157

.9

0

337.90

Surcharge for HT Consumer (P/U)

121.60

47.58

33.35

186.83

94. As per mandate of the Electricity Act, 2003 under Section 42, the Cross Subsidy

Surcharge (CSS) is to be reduced progressively. The Commission is authorized to

evolve a methodology for such reduction. Accordingly, the Commission has fixed the

leviable surcharge, wheeling charges and transmission charges for open access

customer for FY 2023-24 as given in Table below:

Table – 26

Leviable Surcharge, Wheeling Charge and Transmission Charge for Open access

consumer 1MW and above for FY 2023-24

Name of the

licensee

Cross Subsidy

Surcharge (P/U)

Wheeling Charge

P/U applicable to

HT consumers only

Transmission Charges

for Open access

Customer

EHT HT

TPCODL 170.03 85.12 99.67

The Open Access

customer availing open

access shall pay

Rs.5760/MW/Day

(Rs.240/MW/Hour) as

transmission charges

TPNODL 149.03 33.31 141.09

TPWODL 110.53 23.35 95.53

TPSODL 236.53 130.78 137.71

94

Additional Surcharge

95. As per principle followed in the previous order, the Commission has not determined

additional surcharge over and above the surcharge to be paid to the DISCOMs to meet

the fixed cost of licensee arising out of his obligation to supply power as provided

under Sub-Section 4 of Section 42 of the Electricity Act, 2003. This is because no such

case has been brought before the Commission by the DISCOMs. The Renewable

Policy, 2022 of Government of Odisha shall be taken into consideration for availing

renewable power through open access.

In summary,

(i) The wheeling charge, transmission charge and surcharge as indicated in above

Table shall be applicable from 01.04.2023.

(ii) The normative transmission loss at EHT (3%) and normative wheeling loss at

HT level (8%) shall be applicable for the year 2023-24.

(iii) Additional Surcharge: No additional surcharge over and above the Cross-

Subsidy Surcharge is to be levied at present.

(iv) 100% Cross Subsidy Surcharge (CSS) is payable by the consumers availing

Renewable power through open access.

(v) 100% Transmission & Wheeling charge is payable by the consumers drawing

power through open access from Renewable sources.

Exemption under Odisha Renewable Energy Policy 2022:

(i) Fifty percent (50%) of Cross Subsidy Surcharge (CSS) are payable by the Open

Access consumers, on consumption of energy from RE projects, commissioned

in the State during the policy period for fifteen (15) years.

(ii) No Cross-subsidy surcharge are payable by the Industries in the State availing

Renewable power from GRIDCO (with GRIDCO acting as a demand

aggregator).

(iii) 25% wheeling charge is payable by the Captive/ Open Access consumer

drawing power from Renewable projects commissioned in the State during the

RE Policy period for Fifteen (15) years.

(iv) OPTCL shall provide exemption of twenty (20) paise per unit on STU

(Transmission) charges to captive/open access consumers on consumption of

energy from RE projects commissioned in the State, during the policy period for

fifteen (15) years. This exemption shall be allowed for five (5) more years in

case of projects commissioned before 31.03.2026.

95

FINANCIAL ISSUES FY 2023-24

Employee Cost

96. The four DISCOMs (TPWODL, TPNODL, TPSODL and TPCODL), in their ARR and

tariff petition for the FY 2023-24, have projected higher employee cost compared to the

approved cost in the ARR order for FY 2022-23. A comparison of the Employee cost

approved for FY 2022-23 and proposed for FY 2023-24 by DISCOMs is shown in the

following table.

Table – 27

Employee Cost (FY 2023-

24)

(Rs. in Cr.)

Particulars TPWODL TPNODL TPSODL TPCODL TOTAL

Appro

ved

2022-

23

Propos

ed

2023-

24

Appro

ved

2023-

24

Appro

ved

2022-

23

Propo

sed

2023-

24

Appro

ved

2023-

24

Appro

ved

2022-

23

Propo

sed

2023-

24

Appro

ved

2023-

24

Appro

ved

2022-

23

Propo

sed

2023-

24

Appro

ved

2023-

24

Approv

ed

2022-23

Propose

d 2023-

24

Approve

d 2023-

24

Basic Pay + GP

104.00

207.52

106.45

99.70

114.71

114.48

91.92

94.4

8

92

.23

204.82

211.10

206.

60

500.44

627.81

519.75

DA

38.48

59.84

47.90

36.89

43.26

51.52

34.01

41.57

41.50

75.78

99.21

92.97

185.16

243.88

233.89

Reimbursement of

HR

15.60 26.71 20.40 14.95 18.14 13.79 18.90 16.71 30.72 42.22 39.45 75.07 87.83 94.71

Other allowance 4.00 35.25 2.13 2.02 27.23 4.25 1.73 12.47 7.93 9.84 6.51 6.51 17.59 81.46 20.82

Arrear of 7th Pay

commission of

regular employees

26.19 17.64 17.17 45.00 106.00 0.00 0.00

Bonus

0.30

0.35

0.00

0

0.02

0.32

0

.35

0.35

Outsource and

contractual

employee cost

55.54 39.01 39.01 48.00 59.14 59.14 70.00 200.80 95.00 58.87 64.90 64.90 232.41 363.85 258.05

Additional employee

cost

-

CTC

57.13 129.30 44.76 92.37 53.09 34.11 111.55 111.44 98.10 132.70 95.80 234.10 336.62 389.63

Total Emoluments

(1 to 8)

301.25 368.68 345.54 263.96 336.71 300.61 262.73 479.77 364.81 523.15 556.64 506.24 1351.09 1741.80 1517.20

Med. Allowance/

Reimbu. of medical

expenses

5.20 10.70 5.07 4.98 4.85 4.60 4.54 10.24 10.55 10.69 25.02 21.25 25.15

LTC/UL 0.00 1.07 1.07 0.00 2.75 2.75 0 0 0.00 3.82 3.82

Honorarium

0.35

0.50

0.01

0

0.36

0.50

Payment under

workmen

compensation Act

0.10 0.10 0.10 0.00 0.29 0.00 0.39 0.10 0.10

Employees uniform

Expenses

0.40 0.40 0.00 0.00

Ex-gratia 0.00 6.50 6.50 4.59 5.00 5.00 18.04 18.04 4.59 29.54 29.54

Other Staff Costs

1.00

14.30

6.00

3.31

0.36

0.56

0.72

19.61

5.59

34.27

25.97

Total Other Staff

Costs (9 to 1

6)

6.65 33.17 19.24 12.88 8.11 12.96 5.46 0.00 4.54 11.36 48.20 48.34 36.35 89.48 85.08

Staff Welfare

Expenses

3.00 16.61 10.37 3.96 4.08 4.08 4.18 20.33 20.33 8.84 11.21 11.21 19.98 52.23 45.99

Terminal Benefits

(Pension + Gratuity

+ Leave+ PF +

Commuted+ NPS

/CPS)

163.93 222.17 205.41 136.99 211.73 211.73 158.42 139.03 136.31 232.14 237.44 237.44 691.48 810.37 790.89

Total (9+ 17+18+19) 474.83 640.63 580.57 417.80 560.63 529.37 430.79 639.13 526.00 775.49 853.49 803.22 2098.90 2693.88 2439.17

Less : Empl. cost

capitalized

21.18 25.66 25.66 23.95 16.58 16.58 28.37 30.24 30.24 23.90 26.29 26.29 97.40 98.77 98.77

Total Employees

Cost

453.65 614.97 554.91 393.85 544.05 512.79 402.42 608.89 495.76 751.59 827.20 776.93 2001.50 2595.11 2340.40

97. The above table reveals that for the ensuing year all the licensees have proposed a rise

in employee cost compared to the approval for the FY 2022-23. TPWODL, TPNODL,

TPSODL and TPCODL have projected an increase over the approval of FY 2022-23 at

35.56%, 38.14%, 51.31% and 10.06% respectively. The overall projection for all

DISCOMs together is 29.66% more than the previous year’s approval.

96

98. TPCODL in the ARR petition for FY 2023-24 has projected the expenditure on the

employees relating to the inherited employees to the tune of Rs.720.79 crore. This

includes salaries, allowances, terminal benefits and expenses of outsource and

contractual employees. Total cost for the new employees to the tune of Rs.132.72 crore

which includes carry forward of the existing CTC employees to the previous year along

with new recruitment during the year 2023-24. TPCODL has stated that requirement of

new employees is to fulfil operational requirements and to achieve organisational

objectives. TPCODL has therefore projected total employee cost of Rs.853.52 crore for

FY 2023-24 against the present estimated expenditure for 2022-23 of Rs.797.45 crore.

99. TPWODL has proposed the total employee cost aggregating to Rs.640.64 crore

including Cost of inherited employees and CTC employee, against the present

estimated expenditure for 2022-23 of Rs.583.68 crore.

100. TPSODL has proposed the total employee cost aggregating to Rs.639.13 crore

including Rs.111.55 crore towards CTC employee cost against the present total

estimated expenditure for 2022-23 of Rs.545.95 crore.

101. TPNODL has proposed the total employee cost aggregating to Rs. 560.63 crore

including Rs.92.37 crore towards CTC employee cost against the present total estimated

expenditure for 2022-23 of Rs.444.79 crore.

102. The Commission in order to arrive at the estimates for the inherited employees

ascertained the requirement under Basic Pay including Grade Pay, the number of

employees as on 31.3.2022, 31.03.2023 and 31.03.2024 from the submissions.

DISCOMs have also provided the existing CTC employees and their requirement

during the ensuing year. The position of the employees up to the end of FY 2023-24 as

proposed by the Licensees is shown in the following table:-

Table – 28

Employees Proposed (2023-24)

Employees Proposed (2023-24) TPWODL TPNODL TPSODL TPCODL

Inherited

No.

of employees as on 01.04.2022

2121

2059

1858

4490

Add: Addition during 2022

-

23

0

Less: Retirement/Expired/ Resignation

during 2022-23

109 100 79 183

No. of employees as on 31.03.2023

2012

1959

1779

4307

Add: Addition during 2023-24 0 0 0 0

Less: Retirement/Expired/ Resignation

during year 2023

-

24

88 52 76 140

No. of employees as on 31.03.2024 1924 1907 1703 4167

97

Employees Proposed (2023-24) TPWODL TPNODL TPSODL TPCODL

CTC Employee

No. of employees as on 01.04.2022 514 524 475 775

Add: Addition during 2022-23 693 562 528 135

Less: Retirement/Expired/ Resignation

during 2022

-

23

31 0 0 12

No. of employees as on 31.03.2023 1176 1086 1003 898

Add: Addition during 2023-24 761 294 526 200

Less: Retirement/Expired/ Resignation

during year 2023-24

0 0 0 0

No. of employees as on 31.03.2024 1937 1380 1529 1098

Total no. of employees including CTC 3861 3287 3232 5265

103. TPCODL has projected its employee cost for the erstwhile CESU employees on the

basic salary, projected DA rate, HRA @ 20%, reimbursement of medical expenses

@5% and nominal escalation @10% considered for other expenditures including that

for outsource employees. Under the new Health Insurance Scheme covering at present

4965 nos. for the erstwhile CESU employees the cost has been estimated towards the

annual premium amount. The estimation for outsource employees has been made

considering an escalation 10% over the expenditure for FY 2022-23. As regards to the

additional employees, TPCODL recruited about 611 people in the executive cadre

during the year 2020-21. The total recruitment has been projected at 135 nos. during the

year 2022-23 and for FY 2023-24 TPCODL has projected gap of about 200 nos.

considering the total gap identified at the time of takeover to 1367 employees.

TPCODL has stated that the rational of additional manpower is to improve operation

services to reduce 11 KV interruptions, analyze each interruption and corrective actions

to be taken to reduce the undue trippings. TPCODL has also submitted that additional

manpower is required to improve the condition of distribution transformer substation,

overhead feeders, sub-transmission services, power system control, commercial

services, information technology, financial accounts, human resources, procurement

and stores, legal etc. The other three DISCOMs have projected their employee cost on

the same lines except for TPSODL who have projected abnormally high outsourced

employees with a projected cost of Rs. 200 crore. TPNODL have not projected any cost

of outsourced employees in this head but have clubbed it in A& G Cost.

98

104. The Commission had earlier analysed the manpower position, retirements and number

of consumers for each DISCOMs. A comparison was made regarding the manpower

position vis-à-vis the consumers in each DISCOM in Odisha with that of the various

DISCOMs in the country. It was found that in most of the DISCOMs of the country, the

manpower position varies from 1.5 per 1000 consumers to 1.75. It was revealed that

TPSODL manpower position was lowest i.e less than one per 1000 consumers. The

other two DISCOMs i.e TPNODL and TPWODL had their manpower/ employees per

one thousand consumers just above one. TPCODL, on the other hand, is on a more

comfortable position with about two employees per 1000 consumers. After analysis, the

Commission taking into cognizance of this fact and in order to rationalize the

manpower requirement in each DISCOM, allowed the replenishment of the retiring

manpower in the DISCOMs This was communicated to the DISCOMs, vide

Commission’s letter dated 17.01.2021.

105. The Commission after analysis for the purpose of calculation of Basic pay only

considers average no. Of employees during the current FY 2022-23 and also during the

ensuing FY 2023-24 for the inherited employees. As regards the CTC employees,

similar methodology was followed to the number of employees during the year keeping

ratio of employees per 1000 consumers as 1.4. Accordingly, Commission approves

following number of employees for the DISCOMs for FY 2023-24 only for the purpose

calculation of basic pay.

Table - 29

Employees Approved (Inherited)

TPWODL

TPNODL

TPSODL

TPCODL

No. of employees as on 01.04.2022

2121

2059

1858

4490

Add: Addition during 2022

-

23

0

Less: Retirement/Expired /Resignation

during 2022

-

23

109 100 79 183

N

o.

of employees as on 31.03.2023

2012

1959

1779

4307

Add: Addi

tion during 2023

-

24

0

Less: Retirement/Expired/ Resignation

during year 2023

-

24

88 52 76 140

No. of employees as on 31.03.2024

1924

1907

1703

4167

Average no. of employees for FY 2022

-

23

2067

2009

1819

4399

Average no. o

f employees for FY 2023

-

24

1968

1933

1741

4237

Employees Approved – CTC TPWODL

TPNODL

TPSODL TPCODL

No. of employees as on 01.04.2022

514

524

475

775

Add: Addition during 2022

-

23

600

562

496

135

Less: Retirement/Expired Resignation

during 2022

-

23

31 20 0 12

No. of employees as

on 31.03.2023

1083

1066

971

898

99

Add: Addition during 2023-24

725 277 526 100

Less: Retirement/Expired/ Resignation

during year 2023

-

24

0 30 0 0

No. of employees as on 31.03.2024

1808

1313

1

497

998

Average no. of employees for

FY 2022

-

23

799

795

723

83

7

Average no. of employees for FY 2023-24

1446 1190 1234 948

Total no. of employees including CTC

3732

3220

3200

5165

106. All the Licensees have projected their employee cost for FY 2023-24 taking into

account the impact of the new recruitments. The DISCOMs in their reply to queries of

the Commission furnished the actual cash outflow on Basic Pay + GP from April, 2022

to November, 2022 (for a period of 8 months). Accordingly, the Basic pay and GP for

FY 2022-23 as given in the reply to query has been extrapolated to arrive at Basic pay

for FY 2023-24 for the inherited employees. The Commission allows 3% escalation on

Basic Pay and Grade Pay (based on Govt. of Odisha notification on the escalation of

annual salary increments) towards normal annual increment on year to year basis for the

inherited employee and the same principle shall also continue for estimation of Basic

pay and GP for this ARR also. The actual Basic pay and GP drawn for the period April,

2022 to November, 2022 was prorated for the entire year and the Basic pay and GP for

FY 2023-24 was estimated by factoring the average no. of employees for FY 2022-23

and FY 2023-24.

107. The DA as per the 7th Pay Commission recommendations and the projected DA thereof

for FY 2023-24 is shown in the following table:

Table – 30

Effective Date Rate Status

01.01.2016

nil

Approved By GoO

01.07.2016

2%

Approved By GoO

01.01.2017

4%

Approved By GoO

01.07.2017

5%

Approved By GoO

01.01.2018

7%

Approved By

GoO

01.07.2018

9%

Approved By GoO

01.01.2019

12%

Approved By

GoO

01.07.2019

17%

Approved By GoO

01.07.2021

31%

Approved By GoO

01.01.2022

34%

Approved By GoO

01.07.2022

38%

Approved By GoO

01.01.2023

42%

Projected

01.07.2023

45%

Projected

01.01

.2024

48%

Projected

As per the above table the DA rate for FY 2023-24 is assumed to be 45%.

100

House Rent Allowance and Medical Allowance

108. House rent allowance and Medical Allowances have been allowed for FY 2023-24 as a

proportion of the basic pay as submitted by the DISCOMs.

Outsource and Contractual employees Cost

109. As regards engagement of manpower, DISCOMs have submitted that as no recruitment

was permitted by the Commission, there has been drastic reduction in the manpower. In

view of the large scale rural electrification, addition of new consumers, reorganization,

MRT, Energy Audit, maintenance of DTRs and vigilance activities etc., the present

manpower was inadequate. Consequently in order to improve condition of supply,

reduction of distribution loss and to improve collection, DISCOMs have engaged

contractual personnel and outsource agencies for maintenance of existing Grid

substations, sub stations under ODSSP, watch and ward activity, vigilance activities etc.

DISCOMs were asked to submit the actual expenses on these activities during the

current financial year 2022-23. The Commission after scrutiny allows the expenses on

Contractual and outsource employees for the ensuing FY 2023-24 on the basis of the

submission of DISCOMs and actual cash outgo for the current FY 2022-23.

Analysis of LT Division-wise Performance and Employee Performance

110. The Commission have analysed the LT loss level of various divisions of DISCOMs as

submitted by the DISCOMs. The performance in respect of LT segment of all four

DISCOMs (Division wise) for FY 2021-22 on the various parameters is as given in the

following tables.

Table – 31

L.T. PERFORMANCE OF TPCODL FOR THE FY 2021-22

Sl.

No.

Name of

Division

No of

Consumers

Energy

Input(MU)

Energy

Sold

(MU)

LOSS

(%)

(Assuming

HT Loss

8%)

Billing

efficiency

(%)

Billing to

Consumers

(Cr.)

Collection

Received

(Cr.)

Collection

Efficiency

(%)

AT & C

LOSS

(%)

LT

Realization

Per LT

Input

1

BCDD-1 62263 218.389 232.69 -6.55% 106.55% 129.94 129.96 100.02% -6.56% 5.95

2 BCDD-2

187739

497.8

525.35

-

5.54%

105.54%

274.35

279.44

101.85%

-

7.50%

5.61

3 Bhubaneswar ED

140480

423.1

454.43

-

7.41%

107.41%

238.53

237.49

99.56%

-

6.95%

5.61

4 Nayagarh ED 194400 382.0 196.20 48.63% 51.37% 96.84 87.35 90.20% 53.67% 2.29

5 Puri ED 198075 384.3 262.90 31.59% 68.41% 135.02 117.82 87.26% 40.31% 3.07

6 Nimapara

213124

224.4

177.86

20.73%

79.27%

88.28

78.81

89.28%

29.23%

3.51

7 Khurda ED

192493

365.2

55.75

29.96%

70.04%

134.89

124.66

92.4

1%

35.28%

3.41

8 Balugaon EDB

115477

172.5

25.34

27.33%

72.67%

60.85

58.34

95.88%

30.32%

3.38

9

Cuttack ED 163707 410.7 205.60 49.94% 50.06% 109.86 91.02 82.85% 58.52% 2.22

10 Cuttack DD-I

80103

275.3

27

3.72

0.58%

99.42%

149.09

154.63

103.72%

-

3.12%

5.62

11 Cuttack DD-II 79789 262.7 233.70 11.05% 88.95% 125.39 126.19 100.64% 10.47% 4.80

12 Athagarh ED

1

26707

232

.3

116.10

50.03%

49.97%

5

7.33

52.28

91.19%

54

.43%

2.25

13 Salipur ED

116580

197.6

112.49

43.08%

56.92%

55.62

52.94

95.18%

45.82%

2.68

14

Kendrapara ED-

I

204237 293.0 206.76 29.44% 70.56% 103.30 100.43 97.22% 31.40% 3.43

15

Kendrapara ED-

II

95541 109.7 73.73 32.76% 67.24% 35.98 34.03 94.58% 36.40% 3.10

101

16 Paradeep DP

111444

186.4

121.07

35.03%

64.97%

60.31

55.03

91.24%

40.72%

2.95

17

Jagatsinghpur

ED

134017 179.2 129.66 27.66% 72.34% 62.23 61.83 99.35% 28.13% 3.45

18 Dhenkanal ED

196831

376.0

220.09

41.47%

58.53%

114.87

109.39

95.23%

44.26%

2.91

19 Anagul ED

165353

256.8

179.99

29.91%

70.09%

93.89

88.42

94.17%

33.99%

3.44

20 Talcher ED

149127

309.7

185.04

40.25%

59.75%

96.46

81.88

84.88%

49.28%

2.64

TPCODL TOTAL 2927487 5756.933 4288.45 25.51% 74.49% 2223.01 2121.93 95.45% 28.90% 3.69

Table - 32

L.T.PERFORMANCE OF TPNODL FOR THE FY 2021-22

Sl.

No.

Name of

Division

No. of

Consumers

Energy

Input

(MU)

(Assuming

HT Loss

8%)

Energy

Sold

(MU)

T & D

Loss (%)

(Assuming

HT Loss

8%)

Billing

Efficiency

(%)

Billing to

Consumer

(Rs. in

Crs.)

Collection

Received

(Rs. in

Crs.)

Collection

Efficiency

(%)

AT & C

Loss (%)

LT

Realization

Per LT

Input P/U

1

BED,

BALASORE

63048

157.266 138.828 11.72% 88.28% 77.71 70.23 90.38% 20.21% 447

2 BTED, BASTA 85356

126.905 79.324 37.49% 62.51% 37.97 29.34 77.28% 51.70% 231

3

JED,

JALESWAR

121761

164.434 125.459 23.70% 76.30% 56.56 45.38 80.23% 38.79% 276

4

CED,

BALASORE

119226

200.014 128.650 35.68% 64.32% 63.64 52.52 82.52% 46.92% 263

5 SED, SORO 153018 167.631 143.431 14.44% 85.56% 68.59 56.45 82.29% 29.59% 337

6

BNED,

BHADRAK (N)

190050

304.674 213.300 29.99% 70.01% 109.87 91.57 83.35% 41.65% 301

7

BSED,

BHADRAK (S)

116724

151.076 106.862 29.27% 70.73% 51.45 46.89 91.13% 35.54% 310

8

BPED,

BARIPADA

238965

284.313 237.126 16.60% 83.40% 119.32 97.89 82.04% 31.57% 344

9 UED, UDALA

111266

91.9

18

92.580

-

0.72%

100.72%

45.64

31.

49

69.01%

30.50%

343

10

RED,

RAIRANGPUR

209439

206.843 180.019 12.97% 87.03% 89.02 60.92 68.43% 40.44% 295

11

JRED, JAJPUR

ROAD

102621

220.138 152.580 30.69% 69.31% 81.69 75.31 92.19% 36.10% 342

12

JTED, JAJPUR

TOWN

103572

181.098 108.908 39.86% 60.14% 53.40 51.53 96.50% 41.97% 285

13

KUED,

KUAKHIA

120048

219.956 121.438 44.79% 55.21% 60.84 56.06 92.15% 49.13% 255

14

KED,

KEONJHAR

123049 102.243 112.240 -9.78% 109.78% 59.95 52.10 86.90% 4.60% 510

15 JOED, JODA 91014 119.342 115.019 3.62% 96.38% 62.66 57.74 92.14% 11.20% 484

16

AED,

ANANDAPUR

139926 157.822 111.944 29.07% 70.93% 56.99 45.40 79.66% 43.49% 288

TPNODL TOTAL 2089083 2855.673 2167.708 24.09% 75.91% 1095.31 920.83 84.07% 36.18% 322

Table – 33

L.T.PERFORMANCE OF TPWODL FOR THE FY 2021-22

SL.

NO.

NAME OF

DIVISION

No of LT

Consumer

s

ENERGY

INPUT

(MU)

(Assuming

HT Loss

8%)

ENERGY

SOLD

(MU)

LOSS %

(Assuming

HT Loss

8%)

BILLING

EFFICIENC

Y (%)

BILLING

TO

CONSUME

RS (Rs.Crs.)

COLLECTI

ON

RECEIVED

(Rs. IN Crs.)

COLLEC

TION

EFFICIE

NCY (%)

AT & C

LOSS

(%)

LT P/U

REALIS

ATION

1

BARGARH(W)

165580

590

343

41.81%

58.19%

112.52

54.38

48.33%

71.88%

92

2 BARGARH

121716 504 260 48.44% 51.56% 125.06 77.81 62.22%

67.92%

155

3 SONEPUR

129036 294 179 39.24% 60.76% 81.41 44.90 55.15%

66.49%

153

4 TITILAGARH

222433 366 210 42.56% 57.44% 101.07 61.40 60.75%

65.10%

168

5 BOLANGIR

145155 347 195 43.79% 56.21% 94.60 64.91 68.62%

61.43%

187

6 NUAPADA

132702 241 136 43.61% 56.39% 63.18 45.02 71.25%

59.82%

187

7 KWED

165168 166 99 40.49% 59.51% 45.83 38.94 84.98%

49.43%

235

8

SAMBALPUR

(EAST)

116711 247 158 36.00% 64.00% 72.85 59.48 81.64%

47.74%

241

9 KEED

159948 236 189 20.05% 79.95% 87.84 64.37 73.28%

41.41%

273

10 SAMBALPUR

60266 239 180 24.56% 75.44% 105.45 83.30 78.99%

40.41%

349

11 JHARSUGUDA

122593 231 188 18.60% 81.40% 100.61 88.10 87.56%

28.73%

382

12

BRAJRAJNAGA

R

50381 107 83 22.86% 77.14% 42.42 39.79 93.81%

27.64%

371

102

SL.

NO.

NAME OF

DIVISION

No of LT

Consumer

s

ENERGY

INPUT

(MU)

(Assuming

HT Loss

8%)

ENERGY

SOLD

(MU)

LOSS %

(Assuming

HT Loss

8%)

BILLING

EFFICIENC

Y (%)

BILLING

TO

CONSUME

RS (Rs.Crs.)

COLLECTI

ON

RECEIVED

(Rs. IN Crs.)

COLLEC

TION

EFFICIE

NCY (%)

AT & C

LOSS

(%)

LT P/U

REALIS

ATION

13 SUNDERGARH

110697 150 128 14.67% 85.33% 67.04 59.17 88.26%

24.69%

394

14 DEOGARH

73052 67 59 11.63% 88.37% 29.09 26.13 89.85%

20.60%

391

15

ROURKELA-

SADAR

105254 168 155 8.07% 91.93% 82.89 74.76 90.19%

17.08%

444

16

ROURKELA

70653

141

133

6.19%

93.81%

70.29

69.51

98.90%

7.22%

492

17

RAJGANGPUR

13

0218

155

146

6.37%

93.63%

64.38

66.33

103.03%

3.54%

42

7

Total TPWODL

2087702

4296.368

2872.378

33.14%

66.86%

13

90.87

1041.66

74.89%

49.93%

242

Table – 34

L.T.PERFORMANCE OF TPSODL FOR THE FY 2021-22

Sl.

No.

Name of Division No. of

Consumer

Energy

Input(MU)

Energy

Sold

(MU)

LOSS

(%)

(Assuming

HT Loss

8%)

Billing

Efficiency

(%)

Billing

(Lakhs)

Collection

Received

(Lakhs)

Collection

Efficiency

(%)

AT &

C

LOSS

(%)

LT

Realisation

per LT

Input p/u

1

AED

-

I, ASKA

65578

135

56

58.32%

41

.68%

2719.48

2455.89

90.31%

62.36%

1.82

2 AED- II, ASKA

69221 116 56 51.41% 48.59% 2759.96 2226.30 80.66% 60.81% 1.92

3

NED,

NABARANGPUR

271184 291 217 25.43% 74.57% 10093.28 5525.31 54.74% 59.18% 1.90

4 KED, KORAPUT

119648 162 114 29.22% 70.78% 5228.03 3722.37 71.20% 49.61% 2.30

5

GNED, CHATRAPUR

15363

1

205

118

42.41%

57.59%

5737.26

5147.50

89.72%

48.33%

2.52

6 BOED, BOUDH

135074 116 91 21.43% 78.57% 4107.41 2767.10 67.37% 47.07% 2.38

7 MED, MALKANGIRI

170243 147 119 19.14% 80.86% 5818.22 3869.43 66.51% 46.22% 2.64

8 PED, PHULBANI

169848 150 116 22.44% 77.56% 5951.84 4484.15 75.34% 41.57% 2.99

9 JED, JEYPORE

144975 202 160 21.02% 78.98% 7499.70 5794.87 77.27% 38.97% 2.86

10

PSED,

PURUSOTTAMPUR

144059 165 111 32.54% 67.46% 4950.69 4564.93 92.21% 37.79% 2.77

11

BNED,

BHANJANAGAR

139001 161 112 30.36% 69.64% 5367.82 5289.08 98.53% 31.39% 3.28

12

HED, HINJILICUT

129050

115

84

27.17%

72.83%

4020.82

3844.15

95.61%

30.37%

3.34

13

RED,RAYAGADA

149251

163

156

4.85%

95.15%

7861.16

6

192.89

78.78%

25.04%

3.79

14

GSED

,DIGAPAHANDI

104270

118

9

3

21.59%

78.41%

4298.97

4162.59

96.83%

24.08%

3.52

15

PKED,

PARALAKHEMUNDI

125495 125 112 10.51% 89.49% 5478.65 4807.62 87.75% 21.47% 3.86

16

GED, GUNUPUR

64649

77

75

2.47%

97.53%

3524.75

30

68.45

87.05%

15.10%

3.97

17

BED- II,

BERHAMPUR

64358 158 137 13.19% 86.81% 7464.85 7536.91 100.97% 12.35% 4.76

18

BED- III,

BERHAMPUR

77817 96 93 2.86% 97.14% 4667.07 4622.19 99.04% 3.79% 4.83

19

BED- I,

BERHAMPUR

88760 170 172 -0.89% 100.89% 8664.86 8721.74 100.66% -1.55% 5.13

ACTUAL TOTAL TPSODL

2,3

86,112

2,863

2,193

23.41%

76.59%

106214.81

88803.46

83.61%

35.96%

3.10

111. The Commission has always expressed concern regarding high losses at LT level. There

is marginal reduction in losses and but it continues to be quite high in many divisions.

Consequently the ‘Realization per LT input’ of these divisions is dismally low and

much lower than the Bulk supply price and Average cost of supply. Almost all divisions

have, therefore, been spending more on establishment cost in comparison to revenue

realization.

103

112. The respective vesting orders for the four DISCOMs elaborately deals with many

performance parameters, loss reduction targets, capital expenditure, recovery of past

arrears, treatment of employee liabilities etc. The Commission has also elaborated

review of performance and commitments provided by the TPCL while acquiring these

utilities. The Commission has also set the terms for revocation of license in addition to

the provisions related to Revocation of License under Section 19 of the Act.

113. The new Distribution companies have taken over the management of the distribution

system of Odisha during the FY 2020-21 & FY 2021-22. The Commission expects

significant improvement in functioning, consumer service, billing and collection

efficiency and financial health of the new distribution companies. The Commission

have also approved required expenses on employee cost, repair and maintenance cost

and A&G cost for the FY2023-24 in order to allow the new distribution licensees to

plan and execute their actions in all required areas for improvement of the services.

114. The Commission has also reviewed the performance of the DISCOMs during the

current year, having tariff implications for the ensuing year FY 2023-24. It is observed

that all the DISCOMs have exceeded the power purchase and sale of power during the

year resulting in higher revenue and have achieved reduction in AT&C losses over the

previous years. Due to inherent advantage, the three DISCOMs TPWODL, TPNODL

and TPCODL have increased the sales under EHT and HT categories, which are the

cross-subsidising categories in the tariff matrix. It is observed that TPWODL has taken

initiatives in order to attract various industries to draw power at affordable cost. There

was sale of surplus power by GRIDCO at competitive rates to different industries

through Third Party Arrangement (TPA), particularly steel industries, and Bilateral

agreement with small CGP’s. Additional revenue was earned due to imposition of CSS

& transmission charge on open access consumers availing intra-state Renewable Power,

thereby absorbing the increased power purchase cost of GRIDCO and facilitating no

increase in Retail Supply Tariff (RST). Therefore, the Commission has considered

continuation of such initiatives for the overall benefit of the sector in the ensuing year.

Terminal Liability

115. All the DISCOMs have projected their terminal liability for the ensuing year. A

comparative position of the approved terminal liability in ARR of FY 2022-23 vis-a-vis

projection made by the DISCOMs for FY 2023-24 is given in the following table:

104

Table – 35

Terminal Liability proposed for FY 2023-24

Terminal Liability

Approved

FY 2022-23

Proposed FY

2023-24

Percentage

increase (in %)

TPWODL

1

63.93

222.17

35.53%

TPNODL

136.99

211.

73

54.56%

TPSODL

158.42

1

39.03

-

12.24%

TPCODL

232.14

237.40

2.27%

Total 691.48 810.33

17.19%

116. All the four DISCOMs have projected the terminal benefits (Pension, Gratuity and

Unutilized Leave) on the actual outgo basis.

117. The Commission allows the terminal liabilities on the actual cash out go basis for the

ensuing year. As per the vesting order, the Commission, in the ARR, will allow to fund

the trusts on the cash outgo requirement and not on the actuarial projection. During the

present ARR analysis DISCOMs were asked to submit actual cash outgo on terminal

liability for the current FY 2022-23 up to Nov 2022. On the basis of their submission of

the actual liability paid up to Nov 2023, the terminal liability was extrapolated for the

FY 2022-23 and after prudent analysis by the Commission, the expected terminal

liability for FY 2023-24 has been approved, the details of which is given in the

following table.

Table – 36

Terminal Liability (Approved) for the FY 2023-24

(Rs. in Crore)

Terminal

Liability

Proposed FY

2023-24

Approved FY

2022-23

TPWODL

222.17

205.41

TPNODL

211.73

TPSODL

139.03

136.31

TPCODL

237.44

Total 810.37 790.89

118. In light of the discussions in the foregone paragraphs, the Employee cost proposed by

the DISCOMs vis-à-vis approval by the Commission for FY 2023-24 is given in the

following table:

105

Table – 37

Employee Cost (Approved FY 2023-24)

(Rs. in Cr.)

Sl.

No

Particulars TPWODL TPNODL TPSODL TPCODL TOTAL

Propose

d 2023-24

Approve

d 2023-

24

Propos

ed

2023-

24

Approve

d 2023-

24

Propos

ed

2023-

24

Approve

d 2023-

24

Propose

d 2023-

24

Approve

d 2023-

24

Propose

d 2023-

24

Approve

d 2023-

24

1

Basic Pay + GP

207.52

106.45

114.71

114.48

9

4.48

92.23

211.10

206.60

627.81

519.75

2

DA

59.84

47.90

43.26

51

.52

41.57

41.50

99.21

92.97

243.88

233.89

3

Reimbursement

of HR

26.71 20.40 18.14 18.90 16.71 42.22 39.45 87.83 94.71

4

O

ther allowance

35.25

2.13

27.23

4.25

12.47

7.93

6.51

81.46

20

.82

5

Arrear of 7th

Pay commission

of regular

employees

0.00 0.00

6

Bonus

0.35

7

Outsource and

contractual

employee cost

39.01 39.01 59.14 59.14 200.80 95.00 64.90 64.90 363.85 258.05

8

Additional

employee cost-

CTC

129.30 92.37 53.09 111.55 111.44 132.70 95.80 336.62 389.63

9

Total

Emoluments (1

to 8)

368.68 345.54 336.71 300.61 479.77 364.81 556.64 506.24 1741.80 1517.20

10

Med

Allowance/

Reimbursement

of medical

expenses

10.70 5.07 4.85 4.54 10.55 10.69 21.25 25.15

11

LTC/UL

1.07

2

.75

2.75

3.82

12

Honorarium

0.50

13

Payment under

workmen

compensation

Act

0.10 0.10 0.10 0.10

14

Employees

uniform

Expenses

0.00 0.00

15 Ex-gratia 6.50 6.50 5.00 5.00 18.04 18.04 29.54 29.54

16

Other Staff

Costs

14.30 6.00 0.36 0.36 19.61 19.61 34.27 25.97

17

Total Other

Staff Costs (9 to

16)

33.17 19.24 8.11 12.96 0.00 4.54 48.20 48.34 89.48 85.08

18

Staff Welfare

Expenses

16.61 10.37 4.08 4.08 20.33 20.33 11.21 11.21 52.23 45.99

19

Terminal

Benefits

(Pension +

Gratuity +

Leave+ PF +

Commuted+NP

S/CPS)

222.17 205.41 211.73 211.73 139.03 136.31 237.44 237.44 810.37 790.89

20

Total (9+

17+18+19)

640.63 580.57 560.63 529.37 639.13 526.00 853.49 803.22 2693.88 2439.17

21

Less : Empl.

cost capitalized

25.66 25.66 16.58 16.58 30.24 30.24 26.29 26.29 98.77 98.77

22

Total

Employees Cost

614.97 554.91 544.05 512.79 608.89 495.76 827.20 776.93 2595.11 2340.40

119. The Commission directs that employee cost needs to be restricted as per the ARR order,

ABP order and any other directions by the Commission in this regard.

106

Administrative and General Expenses

120. The Administrative and General Expenses covers property related expenses, Licence

Fees to OERC, communication expenses, professional charges, conveyance and

travelling expenses, material related expenses and other expenses including metering,

billing and collection activities. The DISCOMs have projected their estimates for FY

2023-24 in their ARR in the following manner which are compared with approved

A&G expenses for previous FY 2022-23.

Table – 38

A&G Expenses

(Rs. in Cr.)

A&G Expenses Approved FY 2022-23 Proposed FY 2023-24

DISCOMs Normal

A&G

Additional

A&G

Total

A&G

Normal

A&G

Additional

A&G

Total

A&G

TPWODL

110.39 -- 110.39

185.78

76.37 262.15

TPNODL

84.23 -- 84.23

140.08

TPSODL

77.25 -- 77.25

70.89

66.58 137.47

TPCODL

132.72 -- 132.72

163.50

121. The Commission observes that A&G expenses as per the OERC Tariff Regulations

2022 are a controllable cost and the DISCOMs would not be allowed more than the

approved amount in the truing up exercise. The DISCOMs should make efforts to spend

A&G expenses prudently and put efforts to curb wasteful and avoidable expenses. In

the present changed scenario, the management of all the four DISCOMs has been

handed over to the private entity through a competitive bidding process. The new

management in the DISCOMs have projected enhanced A&G expenses which is more

than the norms under the OERC (Tariff Determination) Regulation 2022. The

Commission finds that the proposals for A&G expenses in the petition relates to

improving metering, billing and collection activities, energy audit, AMR metering,

implementation of PAT scheme, IT automation etc.

122. The Commission allows A&G as per the Terms and Conditions for Determination of

Wheeling Tariff and Retail Supply Tariff Regulations, 2022 by escalating 7% over the

expenses for the previous year of the control period. The Commission may also allow

additional expenses under the head for special measures to be undertaken by the

distribution licensees. The A&G expense shall be allowed on normative basis in the

ARR for the ensuing year and shall be subject to true up. The Commission, accordingly,

after prudence check, approves the A&G expenses for FY 2023-24 to all the four

DISCOMS in the following manner:

107

Table – 39

A&G Expenses approved for FY 2023-24

A & G Expenses Approved for FY 2023-24 TPWODL TPNODL TPSODL

TPCODL

Normal A&G expenses (Escalated @7%

over FY 2022

-

23) (A)

118.12 90.13 82.66 142.01

Addit

ional Expenses (B)

40.00

30.00

-

Total A&G expenses (A+B)

158.12

120.13

112.66

142.01

123. The Commission further observes that the DISCOMs shall make the expenditure in

A&G Expenses head in a prudent manner and achieve the objectives for which these

expenses are being made. The additional expenses have also been allowed under this

head in view of the fact that that the normal escalation of 7% over the last year approval

is insufficient to meet the A&G expenses. The Commission has also taken into

cognisance of the expenditure during current FY 2022-23 and found that additional

expenses are required to meet the committed obligations. The Commission has

therefore allowed additional expenses which must be utilised for the purpose envisaged

in the Tariff Regulations, 2022. However, the Commission will check prudently such

expenses made by the DISCOMs while allowing them in the Truing up. The higher

expenses in A&G shall also reflect in the reduction of AT&C losses and general

improvement in the customer services. The Commission will also take into account

such parameters while scrutinizing A&G expenses through data verification, field visits

by the Commission and third-party audit. The Commission hereby directs that the

DISCOMs must limit its expenditure within the amount approved in ARR for the FY

2023-24.

Repair and Maintenance (R&M) Expenses

124. The DISCOMs in their ARR and tariff petition for FY 2023-24 have proposed higher

requirement for R&M over the previous year’s approved expenses as follows:

Table – 40

R & M Proposal for FY 2023-24

(Rs. in Cr.)

R & M Expenses Approved for

FY 2022-23

Proposed for

FY 2023-24

% rise of proposed

over FY 2022-23

approved

TPWODL 156.03 346.01 121.76%

TPNODL

141.43

257.19

8

1.85%

TPSODL

90.24

155.40

72.20%

TPCODL

239.85

291.29

21.45%

TOTAL

627.55

1049.89

67.30%

108

125. As per the OERC (Terms and conditions for Determination of Wheeling Tariff and

Retail Supply tariff) Regulations, 2022, Repair and Maintenance expenses shall be

allowed as a percentage of the opening Gross Fixed Assets (GFA) only on the assets

owned by the distribution company, for each year of the control period. The expenses

allowed under R&M as per the new Regulation for FY 2023-24 is shown in the

following table:

Table - 41

DISCOM TPCODL TPWODL

TPNODL TPSODL

R&M expenses

allowed (%)

4.20% 4.50% 4.50% 5.40%

126. The wheeling & RST Regulations, 2022 provides that the licensee shall prepare a plan

and prepare budget for periodic preventive maintenance of distribution network

including emergency repairs and restoration works under each division. The

Distribution Licensee shall provide the breakup details of R&M expenses in the ARR

along with requirement of annual maintenance spares for smooth operation with

minimum downtime of the system. The Commission shall allow 3% of the opening

GFA of assets added under the state and Central Government schemes for maintenance

of such assets The commission may also allow special R&M in order to enable the

Distribution Licensees to undertake critical activities which are not covered under

capital investment plan approved by the Commission.

127. In order to calculate Repair and Maintenance, the Commission has analysed the fixed

assets of the DISCOMs and subsequent additions during the year. In the submission for

FY 2023-24, the DISCOMs have proposed capital expenditure and addition of fixed

assets scheme wise for FY 2022-23 which is shown in the following table.

Table – 42

Proposed addition of Fixed Assets FY 2022-23

(Rs. in Cr.)

Proposed Capital expenditure TPWODL TPNODL TPSODL TPCODL

Land Building, F& F and others

1.66

School Anganwadi- Grant

2.88

RAPDRP

APDRP

RE/MNP

S.I. Scheme

3.86

0.01

Deposit work

155.05

Deposit work - Consumers

154.77

DDUGJY

0.01

109

Proposed Capital expenditure TPWODL TPNODL TPSODL TPCODL

DDUGJY (12th Plan)

PMU

Biju Gram Jyoti

10.22

Biju Sahar VY

SOUBHAGYA

DESI (GoO)

76.23

0.23

RLTAP

Capex Plan (GoO)

0.17

IPDS

ODSSP

0.23

NH

Statutory safety & security

115.32

48.05 101.96

Loss reduction

72.08

63.83 149.49

Network Reliability

151.00

112.76 257.47

Load growth

151.62

22.53 59.52

Own capex

5

53.17

Technology & civil infrastructure

119.47

55.55 208.56

Meter and cable

48.42

Elephant corridor Grant

69.31

Other works (Govt funded/consumer

fund/ Disaster)

43.61 413.59

IDC

3.03

Employee cost capitalized

32.82

Gridco contribution in kind

6.62

Total

846.29

883.03 302.72 1233.06

128. The Commission analysed the proposed CAPEX and the proposed addition to the fixed

assets. The scheme wise asset addition already made till date and the assets which are

likely to be added during the FY 2022-23 has been considered by the Commission after

prudence check. The assets provided under various schemes of by Government of India

and Government of Odisha, which were not handed over to DISCOMs, have not been

considered as addition to fixed assets. Accordingly, the addition of fixed assets during

FY 2022-23 is given in the following Tables for all four DISCOMs.

Table – 43

TPWODL (New Assets)

(Rs. in Cr.)

Gross Fixed Assets As on

01.04.2022

(Audited)

Proposed

Addition FY

2022-23

GFA

approved for

FY 2022-23

Govt. Assets/

Consumer

Contribution

New asset

considered

for GFA

Land

0

Buildings

29.51

110

Gross Fixed Assets As on

01.04.2022

(Audited)

Proposed

Addition FY

2022-23

GFA

approved for

FY 2022-23

Govt. Assets/

Consumer

Contribution

New asset

considered

for GFA

Plant & machinery

30

3.54

275.70

579.24

24.30

554.94

Vehicl

es

1.39 1.55 2.94

2.94

Furniture

& Fixtures

1.00 1.95 2.95

2.95

Office Equipment

1.75 8.0 9.75

9.75

Office equipment -

computer

27.41 16.34 43.75

43.75

Software

25.66 10.54 36.2

36.2

Total

390.26 314.08 704.34 24.30 680.04

Table – 44

TPNODL (New assets)

Gross Fixed Assets As on

01.04.2022

(Audited)

Proposed

Addition FY

2022-23

GFA

approved

FY 2022-23

Govt. Assets/

Consumer

Contribution

New asset

considered for

GFA

Land

0

Buildings

4.02

37.57

41.59

Plant & machinery

140.84

420

.56

561.4

278.70

282.70

Vehicles

0

.32

0.69

1.01

Furn

iture & Fixtures

0.81

2.62

3.43

Office Equipment

1.35

3.53

4.88

Office equipment -

computer

13.81

8.53

22.34

Software

19.42

14.53

33.95

33.9

5

Total

180.57

488.03

668.6

0

278.70

389.90

Table – 45

TPSODL (New assets)

Gross Fixed

Assets

As on

01.04.2022

(Audited)

Proposed

Addition

FY 2022-23

GFA

approved

FY 2022-23

Govt. Assets/

Consumer

Contribution

New asset

considered

for GFA

Land

0

Buildin

gs

23.39

19.57

42.

96

42.96

Plant & machinery

87.46

240.86

328.32

12.87

315.4

5

Vehicles

0.66

2.00

2.66

Furniture &

Fixtures

5.27

3.15

8.42

Office Equipment

34.67

0.01

34.68

Software

34.82

16.17

50.99

O/E Computer

19.9

7

19.97

Total

186.27

301.73

488.00

12.87

475

.13

111

Table – 46

TPCODL (New assets)

Gross Fixed Assets As on

01.04.2022

(Audited)

Proposed

Addition FY

2022-23

GFA

approved FY

2022-23

Govt. Assets/

Consumer

Contribution

New asset

considered

for GFA

Land

0

Buildings

14.56

8.07

22.63

Plant & machinery

892.06

610.00

1502.06

516.62

985.44

Vehicles

1.61

1.69

3.3

Furniture &

Fixtures

14.87

1.57

16.44

Office Equipment

5.81

1.32

7.13

Office equipment -

computer

0

33.75

33.7

5

Software

22.56

Total

951.47

656.40

1607.8

7

516.62

1091.25

129. The Gross Fixed Assets as on 01.04.2021 has been computed based on the audited

accounts and additional assets approved during the FY 2022-23. The R&M for FY

2023-24 is calculated at the different rates of percentage of the GFA as on 1.04.2023 in

terms of the OERC Wheeling & Retail Supply Tariff Determination Regulation 2022.

In order to ensure maintenance of the assets created under RGGVY, DDUGVY & Biju

Gram Jyoti Scheme, which continue to be with the Govt. of Odisha, the Commission

also allows 3% of such assets as R&M subject to detailed scrutiny in next tariff

proceedings. The approved R&M for FY 2023-24 is accordingly shown in the

following table:

Table – 47

R&M Approved for FY 2023-24

(Rs. in Cr.)

R&M for FY 2023-24 TPWODL TPNODL TPSODL TPCODL

Proposed Approved Proposed

Approved Proposed

Approved

DISCOM's Gross fixed assets

(GFA) as on 01.04.2023(pre

vesting)

1963.30 1963.30 2199.41

1000.58

3365.46

DISCOM's Gross fixed assets

(GFA) as on 01.04.2023(post

vesting)

1046.14 704.34 668.61 488.00 1607.87

Total GFA as on 01.04.2023

3009.44

2667.64

2778.83

2868.02

1499.08

1488.58

5256.99

4973.33

Rate of R & M on GFA

5.40% 4.50% 4.50% 4.50% 5.40% 5.40% 4.20% 4.20%

R&M on GFA

162.51 120.04 125.05 129.06 80.95 80.38 220.79 208.88

Govt. (Funded/Grant) Assets as

on 01.04.2023

3398.17 3398.17 2033.26 1675.95 2406.38 2406.38 2350.04 2350.04

Rate of R & M on Govt.

(Funded/Grant) Assets

5.40% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

R&M on Govt. funded Assets

183.50 101.95 61.00 50.28 72.19 72.19 70.50 70.50

Additional R & M

60.00

71.14

35.00

Total R & M including Special

R & M

346.01

281.99

257.19

214.34

153.14

152.57

291.29

279.38

112

130. The DISCOMs shall make the expenses under R&M in a prudent manner and achieve

the objectives for which these expenses are being made. The additional expenses have

also been allowed under R&M in view of the fact that that the approval based on the

GFA is insufficient to meet the cost of R&M. The Commission has also taken into

cognisance of the current year FY 2022-23 expenditure and found that additional

expenses are required to meet the committed obligations. The Commission has

therefore allowed additional expenses which must be utilised for the purpose envisaged

in the Tariff Regulations, 2022. The Commission will prudently check such expenses

made by the DISCOMs while allowing them in the Truing up. The expenses in R&M

shall also reflect in the achieving a robust and reliable system network, lower network

down time, desirable voltage profile and automation of Substations. The Commission

will also take into account such parameters while scrutinizing R&M expenses through

data verification, field visits and third party audit. The Commission hereby directs that

the DISCOMs must limit its expenditure within the amount approved in the ARR for

the FY 2023-24. The Commission also directs that the TPWODL & TPNODL shall

keep a separate fund for maintaining an inventory for materials which will be required

for restoration of disaster affected network for all DISCOMs. This inventory will be

used by other DISCOMs on transfer basis.

Interest on Loan

131. The loans from various sources for different purposes and interest burden as proposed

by the four DISCOMs for FY 2023-24 is given in the following table:

Table – 48

Interest on Loan (Proposed) for FY 2023-24

(Rs. in Cr.)

Source TPWODL

TPNODL TPSODL TPCODL

Interest on capex loan/long term debt

75.91

49.30

28

.3

4

58.55

Interest on security deposit

46.75

36.

03

18.13

65.56

Interest

on Working Capital

58.95

35.22

20.27

46.87

Total interest before capitalisation

181.61

120.55

66.74

170.98

Less: Interest Capitalised 17.58 9.86 - 10.94

Total interest proposed 164.03 110.69 66.74 160.04

132. The Commission analyzed separately the interest on loans, interest on working capital

and Security deposit proposed by the DISCOMS in the ARR petition.

Interest on CAPEX loan/long term debt

133. The proposed interest on CAPEX loan the four DISCOMs is shown in the following

table.

113

Table – 49

Source TPWODL TPNODL TPSODL TPCODL

Interest on capex loan/long term debt

75.91

49.30

28.34

58.55

134. The Commission had asked for additional information on latest position of the year-

wise actual CAPEX loan availed by the each DISCOM. From the replies of the

DISCOMs it is observed that all the DISCOMs have availed CAPEX loan till the date

of submission. The OERC Wheeling & Retail Supply Tariff Regulation, 2022 provides

that the loan taken for the assets put to use shall be considered as gross normative loan

for calculation of interest. The interest and finance charges on CWIP shall be excluded.

The normative loan outstanding as on 1st April shall be worked out by deducting the

cumulative normative repayment as admitted by the Commission upto 31st March of

the previous year. The rate of interest shall be weighted average rate of interest

calculated on the basis of actual loan portfolio at the beginning of each year as

applicable to the respective distribution licensee. The interest on loan shall be

calculated based on the weighted average rate of interest at the time of truing up on the

normative average loan of the year and the actual asset capitalisation approved by the

Commission for the year.

135. The Commission after a prudent verification allows following amounts to the respective

DISCOMs towards interest on loan. Any variances with the actual amount shall be

addressed at the appropriate stage of truing up.

Table – 50

Interest on Loan approved for FY 2023-24

Source TPWODL TPNODL TPSODL TPCODL

Intere

st on Capex loa

n / long term debt

45.57

31.47

28.34

38.55

Interest on Security Deposit

136. The Interest on security deposit is allowed by the Commission as per the OERC

Distribution (Conditions of Supply Code), 2004. The prevailing bank rate is 6.75% per

annum during February 2023 as notified by RBI in their website. The Commission,

accordingly, allows the interest at the rate of 6.75% on the closing balance on

consumer’s security deposit as on 31.3.2022 as shown in the table below:

114

Table - 51

Interest on Security Deposit approved (2023-24)

(Rs. in Cr.)

Interest on

Consumer's Security

Deposit

Proposed

interest on

Consumer's SD

for FY 2023-24

Consumer's

Security

deposit as on

31.03.2023

(Proposed)

Approved

interest on

Consumer's SD

@ 6.75% for FY

2023-24

TPWODL

46.75 1067.52 72.06

TPNODL

36.03

767.82

51.83

TPSODL 18.13

322.62

21.78

TPCODL 65.56

901.00

60.82

Interest on working capital loan

137. DISCOMs have proposed the interest on working capital loan as per the OERC (Terms

and conditions for Determination of Wheeling Tariff and Retail Supply tariff)

Regulations, 2022 mentioned as below.

Table - 52

Proposed Interest on Working Capital FY 2023-24

Source TPWODL

TPNODL TPSODL TPCODL

O&M for 1 month 73.09 79.82 75.16 109.03

Spares 20% of R&M (one

month)

5.77 4.29 2.59 4.85

One month Power Purchase Cost

425.01 216.93 101.7 300.86

Total 503.87 301.04 179.45 414.74

Interest on Working Capital 11.70% 11.70% 0.11 11.30%

Total Interest on Working

Capital

58.95 35.22 20.28 46.87

138. The OERC Wheeling & Retail Supply Tariff Regulations, 2022, provides that the

DISCOMs shall be allowed interest on the estimated level of working capital for the

wheeling and Retail supply business which shall be computed as follows:

(a) O&M expenses for one month plus

(b) Maintenance spares @twenty (20) percent of average R&M expense for one

month plus

(c) Power purchase cost for one month

Working capital requirement may be met through depreciation allowed by the

Commission on the assets of erstwhile DISCOMs in a manner mentioned in the

vesting orders and as approved by the Commission. The interest on working

capital shall be at a rate equal to the SBI base rate or any replacement thereof by

115

SBI from time to time as applicable as on 1

st

April of the financial year plus 300

basis point or actual weighted average rate of interest towards loan for meeting

working capital requirement availed by the DISCOMs which ever is lower.

139. The Commission after taking into account such provisions in the Regulation has arrived

at the interest on working capital in the following manner and accordingly approves the

same.

Table - 53

Approved Interest on Working Capital FY 2023-24

Source TPWODL TPNODL TPSODL TPCODL

O&M for 1 month 81.45 69.78 63.08 98.95

Spares 20% of R&M (1month) 4.70 3.57 2.54 4.66

Power Purchase Cost (1 month) 433.96 209.60 86.1 286.09

Total 520.11 282.95 151.73 389.70

Less: Depreciation allowed on

old assets

FY 2022-23 32.15 30.94 16.11 15.66

FY 2023-24

27.52 21.08 14.71 52.96

Net Working Capital 460.44 230.93 120.91 321.07

Interest on Working Capital 11.70% 11.70% 11% 11.30%

Total Interest on Working

Capital

53.87 27.02 13.66 36.28

140. Accordingly the total interest on loan proposed by DISCOMs under various loan

components such as capex loan, interest on security deposits and interest on working

capital loan and approved by the Commission for FY 2023-24 is summarized below:

Table - 54

Total Annual Interest approved for the FY 2023-24

(Rs. in Cr.)

Source TPWODL

TPNODL TPSODL TPCODL

Interest on capex loan/long term debt

45.57

31.47

28.34

38.55

Interest on security deposit

72.06

51.83

21.78

60.82

Interest on WC loan

53.87

2

7.0

2

13.66

26.

28

Total interest before capitalization

171.50

110.32

63.78

125.65

Depreciation

141. DISCOMs have calculated depreciation for FY 2023-24 on the existing assets (before

vesting) as well as the new assets created after taken over date. The depreciation

amounts claimed by the four DISCOMs are given as under.

116

Table – 55

Depreciation Proposed

(Rs. in Cr.)

DISCOM

TPWODL TPNODL TPSODL TPCODL

Proposed Depreciation

97.06 66.89 62.09 81.38

142. The Commission analyzed the same relating to the depreciation on existing

(transferred) assets and on the newly created assets as per the vesting orders. The

OERC Wheeling & Retail Supply Tariff Regulation 2022 provides that the depreciation

shall be computed separately for assets capitalized prior to the effective date and the

assets put to use after the effective date. The assets achieving the date of commercial

operation prior to the effective date would continue to earn depreciation as per

depreciation rates approved by Commission prevailing at the time of effective date.

Since no loan has been availed by the new distribution licensee for these assets the

depreciation allowed to be recovered from tariff must be utilized in the manner as per

the following terms of the vesting order.

143. For the purpose of determination of ARR, the depreciation on the GFA as on effective

date, as determined by the Commission, subject to prudence check shall be utilized as

per the following priority order.

i) Funding of ASL as per the vesting order

ii) Capital Investment

iii) Working capital requirement computed as per tariff regulations

The manner of utilisation of such depreciation shall be as per the directions of the

Commission. The distribution licensee shall maintain the separate account for such

depreciation. No depreciation shall be allowed to be recovered on the assets created out

of Govt. grants irrespective of whether the corresponding grant is transferred to the

distribution licensee or not.

The depreciation for the assets of erstwhile DISCOMs shall be calculated on pre-

upvalued cost of assets at pre-1992 rate on the asset base approved by the Commission.

For the assets achieving date of commercial operation (COD) in this control period,

depreciation shall be computed in the following manner.

(a) Approved original cost of the project/fixed assets shall be base value for

calculation of depreciation

(b) Depreciation shall be computed annually based on straight line method at the

117

rates specified in the Regulation.

144. The Commission analysed the audited accounts for FY 2021-22 to assess the inherited

assets and new assets. The DISCOMs were further asked to provide separately the

assets created out of Government grants and Consumer contributions, inherited assets

and assets created by the new DISCOMs. Commission also analysed the assets to be

added during the year FY 2022-23 to arrive at the opening GFA for FY 2023-24.

145. The OERC Wheeling & Retail Supply Tariff Regulations 2022, defines separately the

rate of depreciation for the assets created out of inherited assets (assets created out of

Government grants and Consumer contributions). These assets would be allowed

depreciation at the pre 92 rates. For the assets owned by the DISCOMs the depreciation

would be allowed as per the rates provided in the Regulation. These rates were applied

separately to arrive at the approved depreciation for FY 2023-24 and accordingly, the

Commission approves the following amount towards depreciation for the FY 2023-24.

Table – 56

Depreciation approved for the FY 2023-24

(Rs. Cr.)

Depreciation TPWODL TPNODL

TPSODL

TPCODL

On existing (Transferred)

assets

27.52 21.08 14.71 52.96

On newly created assets

45.41

28.75

37.44

60.41

Total Depreciation

72.9

3

4

9.83

52.

15

113.37

Total Depreciation

approved

72.93 49.83 52.15

81.38

(Limited to proposed amount)

Manner of utilization of depreciation:

146. The Commission in light of these facts directs that the depreciation shall be used only

for the purpose as stipulated in the respective vesting order.

Provision for Bad & doubtful debts

147. The TPWODL, TPNODL, TPSODL and TPCODL have proposed Bad and doubtful

debts @1% of proposed revenue in the ARR for FY 2023-24 which is shown in the

table below:

Table – 57

Bad & Doubtful Debts

(Rs. cr)

DISCOM TPWODL

TPNODL

TPSODL

TPCODL

Proposed revenue (Rs. in Crores)

6171.82

3,503.14

1985.81

5144.05

Bad and Doubtful debt (Rs. in Crores)

61.72

35.03

19.86

50.87

118

148. The OERC Wheeling & Retail Supply Tariff Regulation, 2022 provides for the Bad &

doubtful debts, which is reproduced below:

“The commission shall allow a provision for bad debts as a pass through in the ARR

as a prudent commercial practice in the revenue requirement of the licensee. The

provision of bad and doubtful debts during the control period shall be allowed on

normative basis of 1% of the total annual revenue billed for sale of electricity.”

149. Therefore, according to the above provisions of the Regulation the Commission is

required to establish a percentage of the total approved revenue to be billed in this order

as Bad debt. Hence the amount of Bad and doubtful debt as proposed by the DISCOMs

and approved by the Commission for FY 2023-24 is summarized below: Table –

Table – 58

Bad & Doubtful Debt FY 2023-24 (Approved)

(Rs. in Crore)

TPWODL

TPNODL

TPSODL

TPCODL

Approved revenue

6251.99

3,559.02

1990.77

5170.68

Bad and Doubtful debt

62.5

2

35.59

19.

91

51.71

Additional Serviceable Liabilities (ASL)

150. TPCODL in the ARR petition has submitted that the funding of ASL is to be considered

which may be allowed in the ARR. TPCODL stated that it has filed a Petition for

determination of ASL and subsequently an independent audit was carried out and a

reworked ASL (amounting to Rs. 386.64 Cr) was submitted for the Commission ‘s

approval. The same is under consideration of the Commission. Against a sum of Rs.

386.64 Cr. as mentioned above, TPCODL has already discharged liabilities amounting

to Rs. 237.84 Cr by FY 2021-22 against which there is virtually insignificant recovery

from the various Current Assets transferred to TPCODL in the Opening Balance Sheet

and short recovery against receivables transferred to TPCODL.

151. The Commission in this regard observes that a separate request filed by the DISCOMs

in this regard for revision of the ASL is under consideration of the Commission and the

same will be dealt separately after the audit of all such liabilities are submitted to the

Commission. The Commission is therefore not inclined to consider any amount in the

present ARR for FY 2023-24 for TPCODL.

Return on Equity

152. The DISCOMs have projected the ROE based on their equity capital and the normative

equity on the proposed CAPEX in the following manner

119

Table- 59

Return on Equity

(Rs in cr.)

DISCOM TPWODL TPNODL

TPSODL

TPCODL

ROE Proposed

109.44

79.42

54.14

131.96

153. The Commission has considered allowing the RoE as per the OERC (Determination of

Wheeling and Retail Supply Tariff) Regulation, 2022. As per said Regulation, the RoE

shall be allowed on the approved reserve price of the utility from the effective date of

operation at the rate of @16% per annum (post tax) in Indian Rupees terms on pro-rata

basis as per Vesting orders. ROE on equity on the assets put to use after Effective date

upto date of applicability of these Regulations 2022 will also be allowed on the assets

put to use under the current Regulations and shall be computed on the Paid-up capital

determined in accordance with these regulations and shall be allowed at the rate of 16%

per annum (post-tax) in Indian rupees. Assets funded by consumer contributions, capital

subsidies/Government grants shall not form part of the capital base for the purpose of

ROE. The ROE shall be calculated on the normative average equity of the year. The

assets transferred to Distribution Licensee (s) in lieu of equity investment by GRIDCO

shall be allowed in fixed asset base for determination of tariff after prudence check.

154. The Commission observes that as and when the actual Equity is infused by both the

shareholders, DISCOM and GRIDCO, this will be considered in the ARR.As per the

respective vesting order of the four DISCOMs, GRIDCO who is 49% shareholder is

allowed to bring matching equity in kind for any capex infusion along with 51% equity

to be bought by the DISCOMs. GRIDCO will infuse the equity by transferring

matching Govt. assets lying in the DISCOMs area as per the requirement of capex

infusion on which ROE will be allowed in the ARR.

155. Therefore, in terms of the OERC Wheeling & Retail Supply Tariff Regulations 2022, in

order to arrive at the ROE the Commission has considered the necessary parameters.

Asset base has been considered excluding assets created out of Government grants and

consumer contribution. From these assets, normative loan repayment depreciation

allowed during last ARR 2022-23 on the old inherited assets have been deducted. Such

net assets were considered on the proportion of 30% equity and 70% loan. However,

Regulation 3.5.2(b) of the OERC Wheeling & Retail Supply Tariff regulations 2022 at

3.5.2 (b) provides that where the actual equity employed is less than 30% of capital cost

approved by the Commission, the actual equity shall be considered and the balance

amount in excess of 70% normative loan shall be considered as normative loan. ROE

has been calculated based on above principle.

120

156. Accordingly, the amount of ROE proposed by DISCOMs and allowed by the

Commission is given in the following table.

Table – 60

RoE proposed and approved for the FY 2023-24

(Rs. in cr.)

DISCOM TPWODL TPNODL TPSODL TPCODL

ROE Proposed

109.44

79.42

54.14

131.96

ROE Allowed

57.59

47.19

39.67

80.63

Non-Tariff Income

157. The Non-Tariff Income proposed by the licensees for the FY 2023-24 against the

approved amount for FY 2022-23 are given in the table below:

Table - 61

Non-Tariff Income

(Rs. in cr.)

DISCOMs TPWODL TPNODL TPSODL

TPCODL

Amount approved for FY 2022-23

269.69 154.15 35.16 107.21

Amount proposed for FY 2023-24

289.33 178.45 55.57 109.55

158. The Non-Tariff Income (NTI) of the DISCOMS is defined in the OERC Wheeling &

Retail Supply Tariff Regulations 2022, which are to be deducted from the ARR. The

NTI are mainly on account of rent of land or building, sale of scrap, income from

statutory investments, advances to suppliers and contractors, service charges,

advertisements, commission for collection of ED, miscellaneous charges, interest on

loans and advances, DPS, over drawal penalty, supervision charges, and other

miscellaneous receipts.

159. Commission observes that the non-tariff income are fluctuating in nature and the

reasonable estimate of future receipts would be on the basis of the analysis of past

trends. The Commission after scrutiny and analysis allows the Non-Tariff Income

(NTI). Any variation with the actual amount shall be addressed at truing up stage.

160. The approved Non-tariff Income for FY 2023-24 is shown in the following table:

Table – 62

Non-tariff Income proposed and approved for the FY 2023-24

(Rs. in cr.)

TPWODL TPNODL TPSODL TPCODL

Proposed Approved Proposed Approved Proposed Approved Proposed Approved

Rebate on power

purchase

51.00 51.00 26.03 26.03 12.20 12.20 36.10 36.10

Rebate allowed to

Consumers

-19.86 -19.86 -57.43 -57.43

121

TPWODL TPNODL TPSODL TPCODL

Proposed Approved Proposed Approved Proposed Approved Proposed Approved

Meter rent

23.46

Supervision

charges/Inspection fee

6.67 6.67 8.23 8.23

9.32

Interest on FD 56.00 56.00 47.10 47.10

20.46 28.97 28.97

Open access charges

(CSS & wheeling)

150.00 250.00 45.31 45.31

34.74 34.74

Sale of scraps 0.00 10.00 10.02 10.02

9.70

ODP/Delay payment

surcharge

11.66 11.66 15.18 15.18 10.74 10.74 12.82 12.82

Miscellaneous receipt 14.00 15.00 3.12 3.12 52.49 13.26 54.35 54.35

Total 289.33 400.33 178.45 154.99 55.57 55.82 109.55 109.55

Revenue Requirement

161. In the light of above discussions, the Commission approves the revenue requirement of

the FY 2023-24 of four DISCOMs, as shown in Annexure-A.

162. A summary of the proposed & approved revenue requirement, expected revenue (at the

approved tariff) and revenue gap for FY 2023-24 is given below:

Table – 63

Proposed & Approved Revenue Requirement & Expected Revenue for the FY 2023-24

(Rs. in Cr.)

DISCOM Revenue Requirement

FY 2023-24

Expected Revenue

FY 2023-24

Gap (-)/ Surplus (+)

Proposed Approved Proposed Approved Proposed Approved

TPWODL

5771.94

6192.72

6171.82

6251.99

399.88

59.27

TPNODL

3707.35

3556.28

3503.14

3559.02

-

204.21

2.74

TPSODL

2289.78

1988.22

1985.81

1990.77

-

303.97

2

.

55

TPCODL

5227.48

5205.5

0

5144.05

5170.68

-

83.43

-

34.82

Total 16996.55 16942.72 16804.82 16972.46 -191.73 29.74

Note: The approved revenue requirement of TPWODL is more than the proposed

revenue requirement. This is due to increase in BSP and consequent increase in

power purchase cost, levy of additional BSP surcharge and true up surplus

during the FY 2020-21 and 2021-22.

Segregation of wheeling and retail supply business

163. For the Retail Supply business the ARR proposal shall comprise information such as

power purchase expenses, O&M Expenses, Interest on Loan Capital and Working

capital, depreciation, ROE, statutory levies and taxes, Bad and doubtful debt, other

allocation of expenses, ARR for wheeling business. The deduction will be made on

account of NTI, income from other business, receipt on account of cross subsidy

surcharge from open access consumers, any revenue grant, subsidy provided by the

Government and provision for receipt of revenue on account of Cross Subsidy

Surcharge (CSS).

122

164. The DISCOMs in their ARR submissions have proposed allocation under wheeling and

retail supply business in line with the OERC Wheeling & Retail Supply Tariff

Regulations, 2022.

Table – 64

Allocation of Wheeling and Retail Supply Cost

Sl.

No.

Cost/Income Component Ratio for

consideration

in Wheeling

Business

Ratio for

consideration in

Retail Supply

Business

1

Power purchase expenses

0%

100%

2

Intra

state transmission Charges

0%

100%

3

Employee Expenses

60%

40%

4

Administrative & Gen

eral Expenses

50%

5

Repair &

M

aintenance

Expenses

90%

1

0%

6

Depreciation

90%

10%

7

Interest on long term capital

90%

10%

8

Interest

on Working capital

10%

90%

9

Provision for bad debts

0%

100%

10

Income Tax

90%

10%

11

Contribution to Contingent

Reserve, if any

100%

0%

12

Retu

r

n on Equity

90%

10%

13

N

on

-

Tariff Income

10%

90%

165. The distribution licensees are yet to segregate the accounts of their licensed business

into wheeling and retail supply business as provided in the earlier OERC (Terms and

Conditions for Determination of Wheeling Tariff & Retail Supply Tariff) Regulations,

2014 and also as per the present OERC Wheeling & Retail Supply Tariff Regulations,

2022. The Commission therefore, based on the above uniform allocation matrix allows

cost towards Retail Supply business and Wheeling business in the following manner.

The Commission shall monitor the same.

Wheeling Business

166. OERC (Terms and Conditions for Determination of Wheeling Tariff & Retail Supply

Tariff) Regulations, 2022 provides that ARR shall contain the proposal for wheeling

Tariff and Retail supply tariff including its computation. The licensee shall furnish the

required information with regard to technical, commercial and financial parameters.

The ARR proposal shall include information for the wheeling business such as detailed

capital expenditure, capitalisation, financing plan, distribution system or network usage

forecast, O&M expenses, interest on loan capital & working capital, depreciation, ROE,

Income tax, other taxes and other relevant expenses, etc. The deduction as per the

regulation will be made on account of NTI, income from other business and income

from wheeling charges payable by the existing distribution system users other than the

retail consumers including the losses.

123

167. As per the Regulation “Wheeling Business” means the business of operating and

maintaining a distribution system for transfer of electricity in the area of supply of

Distribution Licensee. As such the apportioned cost towards wheeling business has

been considered while determining Aggregate Revenue Requirement and wheeling

charges. The Miscellaneous receipts for the wheeling business, receipts on account of

wheeling charges from open access consumers, supervision charges and Service line

rentals are considered out of the total approved Miscellaneous receipts in this order

from the Annual accounts. However, such segregation is not available in the audited

accounts of the DISCOMs. The Commission in order to rationalise the apportionment

of the Non-tariff income has considered 10% for the wheeling business and 90% for the

Retail business. This is shown in the following table:

Table – 65

Miscellaneous Receipts for the Wheeling business & Retail Business for the FY 2023-24

(Rs. Cr.)

TPWODL

TPNODL

TPSODL

TPCODL

Total Miscellaneous Receipts

Approved

for FY 2023

-

24

400.33 154.99

55.82 109.55

Approved Miscellaneous Receipt for

Wheeling Business (10%)

40.03 15.50 5.58 10.96

Approved Miscellaneous Receipt for

Retail Business (90%)

360.30 139.49 50.24 98.60

168. On the basis of allocation matrix for Wheeling and Retail Supply business, the cost in

respect of wheeling business of TPWODL, TPNODL, TPSODL and TPCODL is

approved for Rs.758 cr, Rs. 642.60 cr, Rs. 580.16 cr and Rs. 936.74 cr respectively.

Accordingly, the wheeling charges (per unit) have been calculated for TPWODL,

TPNODL, TPSODL and for TPCODL at the rate 95.53 paise/unit, 141.08 paise/unit,

137.71 paise/unit and 99.67 paise/unit respectively. The Commission in this order has

considered A&G Expenses for wheeling and retail business in the proportion of 40%

and 60 % respectively as per the earlier Regulation, 2014. This is in view of the fact

that capex investment is gradually increasing by the DISCOMs and wheeling charges

are reasonable. In the ARR for subsequent years, the A&G expenses for wheeling and

retail business will be in the ratio 50:50 as per the new OERC Tariff Regulations, 2022.

The details of the cost allocation in respect of Wheeling Business and determination of

wheeling charges is shown in the following table:

124

Table - 66

Allocation of cost towards Wheeling Business of DISCOMs for the FY 2023-24

(Rs. in Crs.)

Ratio out

of Total

approval

TPWODL TPNODL TPSODL TPCODL TOTAL

Expenditure (%) Approved

Total cost

Approved

Wheeling

cost

Approved

Total cost

Approved

Wheeling

c

ost

Approved

Total cost

Approved

Wheeling

cost

Approved

Total cost

Approved

Wheeling

cost

Approved

Total cost

Approved

Wheeling

cost

Employee costs

(After

Capitaisation)

60 554.91 332.95 512.79 307.68 495.76 297.45 776.93 466.16 2,340.40

1404.24

Repair &

Maintenan

ce

90 281.99 253.79 214.34 192.91 152.57 137.32 279.38 251.44 928.28

835.46

A & G Expenses

40

158.12

63.25

120.13

48.05

112.66

45.06

142.01

56.80

532.91

213.16

Depreciation

90

72.93

65.63

49.83

44.85

52.15

46.

93

81

.38

73.

24

256.2

8

230.65

Interest on long

term Loan capital

90 27.99 25.19 21.61 19.45 24.34 21.91 27.61 24.85 101.55

91.40

Interest on Working

Capital Loan

10 53.87 5.39 27.02 2.70 13.66 1.37 26.28 2.63 120.84

12.08

Return on

equi

ty

90

57.59

5

1.83

47.19

42.47

39.67

35.70

80.63

72.57

225.08

202.57

Gross Total

1207.40

798.03

992.91

658.10

890.81

585.74

1414.23

947.69

4505.34

2989.56

Less:

Miscellaneous

receipts

10 400.33 40.03 154.99

15.50 55.82 5.58 109.55

10.96 720.69

72.07

Total wheeling

Cost

758.00 642.60 580.16 936.74 2917.50

Total MU approved

for LT & HT

consumers

7934.46

4554.70

4213.05

9398.00

26100.21

Wheeling charges

(P/U)

95.53 141.08 137.71 99.67 111.78

Retail Supply Business

169. The Retail Supply business comprises of power purchase expenses, O&M Expenses,

Interest on Loan Capital & Working capital, depreciation, ROE, statutory levies and

taxes, Bad and doubtful debt, etc. The deduction will be made on account of NTI,

income from other business, receipt on account of Cross Subsidy Surcharge (CSS) from

open access consumers, any revenue grant, subsidy provided by the Government and

provision for receipt of revenue on account of Cross Subsidy Surcharge.

170. On the basis of allocation matrix for Wheeling and Retail Supply business, the cost in

respect of retail supply business for TPWODL, TPNODL, TPSODL and for TPCODL

is given in the following table:

Table – 67

Allocation of cost towards Retail Supply Business of DISCOMs for the FY 2023-24

(Rs. in Cr.)

Ratio

out of

Total

approval

TPWODL TPNODL TPSODL TPCODL TOTAL

Expenditure

(%)

Approved

Total cost

Approved

Retail

Supply cost

Approved

Total cost

Approved

Retail Supply

cost

Approved

Total cost

Approved

Retail

Supply cost

Approved

Total cost

Approved

Retail

Supply

cost

Approved

Total cost

Approved

Retail

Supply

cost

Cost of power purchase 100 5207.54 5207.54 2515.18 2515.18 1033.20 1033.20 3433.08 3433.08 12,189.00 12189.00

Transmission Charges 100 318.86 318.86 180.19 180.19 118.08 118.08 270.14 270.14 887.28 887.28

SLDC Charges

100

2.06

1.16

0.76

1.74

5.72

125

Ratio

out of

Total

approval

TPWODL TPNODL TPSODL TPCODL TOTAL

Expenditure

(%)

Approved

Total cost

Approved

Retail

Supply cost

Approved

Total cost

Approved

Retail Supply

cost

Approved

Total cost

Approved

Retail

Supply cost

Approved

Total cost

Approved

Retail

Supply

cost

Approved

Total cost

Approved

Retail

Supply

cost

Employee costs( After

Capitaisation)

40 554.91 221.96 512.79 205.12 495.76 198.30 776.93 776.93 2,340.40 936.16

Repair & Maintenance 10 281.99 28.20 214.34 21.43 152.57 15.26 279.38 27.94 928.28 92.83

A & G Expenses

60

158.12

94.87

120.13

72.08

112.66

6

7.59

14

2.01

85.21

532.91

319.75

Bad and Doubtful debt

100

62.52

35.59

19.91

51.71

169.72

Depreciation 10 72.93 7.29 49.83 4.98 52.15 5.21 81.38 8.14 256.28 25.63

Interest on long term Loan

capital

10 27.99 2.80 21.61 2.16 24.34 2.43 27.61 2.76 101.55 10.16

Interest on Working Capital

Loan

90 53.87 48.48 27.02 24.32 13.66 12.30 26.28 23.65 120.84 108.75

Interest on security deposit 100 72.06 72.06 51.83 51.83 21.78 21.78 60.82 60.82 206.48 206.48

Return on equity

10

57.59

5.76

47.19

4.72

39.67

3.97

80.63

8.06

225.08

22.51

Gross Retail Supply Cost

6870.44 6072.41 3776.86 3118.76 2084.53 1498.79 5231.72 4750.18 17963.55 14973.98

Less

: Miscellaneou

s Receipts

90

400.33

360.30

154.99

139.49

55.82

50.24

109.55

98.60

720.69

648.62

Net Retail Supply Cost 6470.11 5,712.11 3621.87 2,979.27 2028.71 1,448.55 5122.17 4651.59 17242.86 14325.36

(Special Appropriation)

-

277.38

-

65.59

-

40.49

83.33

-

300.13

Net Retail Supply Cost

(After special

Appropriation)

6192.73 3556.28 1988.22 5205.50 16942.73

171. In the last RST order the Commission had directed DISCOMs to segregate their

accounts for wheeling business and retail supply business as per OERC (Terms and

Conditions for Determination of Wheeling Tariff & Retail Supply Tariff) Regulations,

2014. The new regulation OERC (Terms and Conditions for Determination of

Wheeling Tariff & Retail Supply Tariff) Regulations, 2022 also stipulates that the

distribution licensee shall segregate the accounts of the licensed business into wheeling

and Retail Supply business within one year of notification of these Regulations as per

the guidelines to be issued by the Commission. Pending such guidelines, the

Commission directs DISCOMs to take necessary steps in order to segregate their

accounts for wheeling business and retail supply business as per the said OERC

Regulation. The compliance on this account must be furnished by 31st August, 2023.

Truing up of DISCOMs

172. Truing –up applications have been filed by the three (3) distribution companies

(TPCODL, TPWODL and TPSODL) for the FY 2020-21. Similarly, the truing up

application have been filed by four (4) DISCOMs (TPCODL, TPWODL, TPSODL and

TPNODL) for the FY 2021-22 under Section 62 and 86(1) and all other applicable

provisions of the Electricity Act, 2003 read with relevant provisions of OERC (Terms

and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)

Regulations, 2014 and other related Rules and Regulations.

126

TPCODL

173. Tata Power Central Odisha Distribution Limited (TPCODL) is a joint venture of Tata

Power (51%) and Government of Odisha represented through GRIDCO (49%) on the

Public-Private Partnership (PPP) model. TPCODL was vested on 01.06.2020 to take

over the license to distribute electricity in the central part of Odisha, which was earlier

served by erstwhile CESU, after being selected through a competitive bidding process.

TPCODL.

174. In terms of the OERC (Determination of Wheeling & Retail Supply Tariff) Regulation,

2014, the DISCOMs are required to file truing up petition along with the audited

accounts for the year. In terms of such Regulation, TPCODL have filed the application

for approval of truing up expenses for ten (10) months (June 2020 to March 2021) for

the FY 2020-21, which has been registered as Case No.90 of 2022 and truing up for the

FY 2021-22 registered (as Case No.91 of 2022).

175. TPCODL has submitted the details of expenses approved by the Commission vis-à-vis

the actual expenses duly audited for the FY 2020-21 and FY 2021-22.

TPSODL

176. TPSODL has taken over the distribution business from erstwhile SOUTHCO utility

w.e.f 1st January 2021 as per terms of Order dated 28th December 2020 (“Vesting

Order”). TP Southern Odisha Distribution Limited (TPSODL) is a joint venture

between Tata Power (51%) and the Government of Odisha represented through

GRIDCO (49%).

177. TPSODL has stated that the Commission after following the due regulatory process has

approved certain expenditure in the petitions, (a) ARR for FY 2022-23, (b) Capex

approval of FY 2021-22, (c) Annual Business Plan (i.e Opex) for FY 2021-22 and (d)

Capex approval of FY 2022-23.TPSODL has Submitted applications for truing up

expenses along with details of expenses approved by the Commission vis-à-vis the

actual expenses duly audited for the FY 2020-21 and FY 2021-22. The truing up

applications of TPSODL were registered as Case No.06 of 2023.

127

TPWODL

178. TPWODL has taken over the distribution business from erstwhile WESCO utility w.e.f

1st January 2021 as per terms of Order dated 28th December 2020 (“Vesting Order”).

TP Western Odisha Distribution Limited (TPWODL) is a joint venture between Tata

Power (51%) and the Government of Odisha represented through GRIDCO (49%) and

took over the responsibility of distribution of electricity in western part of Odisha.

179. TPWODL had filed the application for approval of truing up for FY 2020-21 (January

2021 to March 2021) and truing up application for FY 2021-22 registered as Case

No.81 of 2022 . TPWODL has submitted the details of expenses approved by the

Commission vis-à-vis the actual expenses duly audited for the FY 2020-21 and FY

2021-22.

TPNODL

180. TPNODL (TP Northern Odisha Distribution Limited) was incorporated as a joint

venture of the Tata Power Company (51%) and Government of Odisha represented

through GRIDCO (49%) on the Public-Private Partnership (PPP) model. TPNODL took

over the license to distribute electricity in the five districts of northern part of Odisha

with effect from 1.4.2021 in compliance to vesting order of the Commission dated

25.3.2021 in Case No.9/2021.

181. NESCO Utility had filed the application for determination of Annual Revenue

Requirement and Tariff application for the FY 2021-22 on 30.11.2020. The

Commission after hearing all stakeholders, passed the order on dated 26.3.2021.

TPNODL has filed its true up application which is registered as Case No.84 of 2022

and has submitted the details of expenses approved by the Commission vis-à-vis the

actual expenses duly audited for the FY 2021-22.

182. The Commission has taken cognisance of the true up petitions of the respective

DISCOMs, respective approvals in the ARR, available audited accounts for FY 2020-

21 and 2021-22, additional approvals in respective Annual Business plans, additional

recruitment approvals and OERC (Terms and Conditions of Wheeling and Retail

Supply tariff) Regulations, 2022. The commission has analysed the same to arrive at the

true up approval.

128

Commission’s Order:

183. The Commission in the last ARR order for 2022-23 had carried out the truing up

exercise of TPCODL for the FY 2020-21, TPSODL for the FY 2020-21 and TPWODL

for the FY 2020-21. The observation of the Commission in this regard is as follows:

The Commission has carried out this truing up exercise purely based on the Tariff

Regulations 2014, wherein many such feature of the vesting orders and subsequent

orders are required to be further scrutinised. This exercise has resulted in a surplus

scenario for the utilities in spite of having only few months of operation when the

AT&C losses still are prevailing at pre vesting level. Moreover all the utilities were

vested during the height of the Covid pandemic situation. In these circumstances it is

observed that this truing up exercise require further scrutiny of the expenditure vis-à-

vis approval in the ARR along with concessions allowed in the vesting order and other

related orders of the Commission. Moreover, audited accounts of full year will give the

right scenario of the performance of the new DISCOMs. Under these circumstances the

Commission considers this truing up as provisional and the DISCOMs are allowed to

file any submissions in this regard for further consideration of the Commission. The

Commission may take a view in this regard later in order to address the issues and to

finalise the truing up along with next year truing up for FY 2021-22 when the full year

audited accounts are available.

184. In the present ARR petition for the FY 2023-24, TPCODL, TPWODL, TPSODL have

filed truing up application again for FY 2020-21 along with fresh application for FY

2021-22. TPNODL has filed its true up application for the FY 2021-22.

185. In the meantime, the Commission has notified OERC (Terms and Conditions for

determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022. The said

regulation clearly defines the methodology of the truing up. The broad frame works of

true up in the regulation is given in the following paragraphs.

 “The Distribution Licensee shall be subject to truing up of expenses and

revenue during the Control Period in accordance with these Regulations. The

Commission has carried out Truing up exercise on the basis of actual expenses

booked in the audited account of the Distribution Licensee for the particular

year, and the expenses allowed in the ARR for the corresponding Financial

Year.

129

 The Commission shall pass an order basis of the approved aggregate gains or

losses to the Distribution Licensee on account of controllable factors, and the

amount of such gains or such losses, Components of approved cost pertaining to

the uncontrollable factors, carrying cost to be allowed on the amount of

Revenue Gap or Revenue Surplus.

Controllable and Uncontrollable costs:

 As per the Regulation, the Commission determine some specific Uncontrollable

costs like Force Majeure events, change in law, judicial pronouncements,

Variation in the price of fuel and/ or price of power purchase including Intra-

State transmission and SLDC Charges, Variation in the number or mix of

consumers or quantum of electricity supplied to consumers, Transmission Loss,

Variation in market interest rates, Taxes and Statutory levies, Taxes on Income.

 As per the Regulation the Commission determine some specific controllable

costs like Variations in capitalisation on account of time and/or cost overruns/

efficiencies in the implementation of a capital expenditure project not

attributable to an approved change in scope of such project; Variation in

Operation &Maintenance expenses; Variation in Interest and Finance Charges,

Return on Equity and Depreciation on account of variation in capitalisation, as

specified in clause (a) above; Variations in interest on working capital;

Variations in aggregate technical and commercial (AT&C) losses of

Distribution Licensee; Variations in recovery of past arrears pertaining to

erstwhile Distribution Licensees as per terms of Vesting Orders Variations in

performance parameters; Failure to meet the standards specified by the

Commission, as amended from time to time, except where exempted by the

Commission; Bad debts written off.

Mechanism for pass through of gains or losses on account of uncontrollable factors

 The approved aggregate gains or losses to the Distribution Licensee on account

of uncontrollable factors shall be passed through as an adjustment in the tariff

of the Distribution Licensee over such period

 The Distribution Licensee shall submit such details of the variation between

expenses incurred and revenue earned, and the figures approved by the

Commission, in the prescribed format to the Commission, along with the

detailed computations

Mechanism for sharing of gains or losses on account of controllable factors after

Truing Up

 The gains or losses accruing to the new Distribution Licensees on account of

AT&C loss and incentive on past arrear recovery shall be governed by the terms

and conditions of Request for Proposal (RfP) documents and Vesting Orders of

respective Distribution Licensees. The Commission shall treat the profit beyond

the approved return in the following manner:

 One-third amount to be declared by the licensee as dividends to the

shareholders and if it is not paid out as dividend, it shall be eligible to be

treated as part of equity to that extent and earn returns on the same

130

 One-third amount to be returned back to consumers by way of reduction in the

consumer bills as rebate

 One-third amount shall be kept as tariff balancing reserve, which shall be used

to reduce sharp rise in ARR in future years. The Commission may allow a part

of the total reserve to be returned to the consumers every three years by way of

reduction in ARR

Subsidy Mechanism

 The licensee shall make an estimate of subsidy to be provided to the consumers

or class of consumers as per the Government notification and file the same with

the Commission for approval.

 The Commission, on according approval forward the same to the State

Government with a direction to pay the amount in full with a copy of the

approval to the licensee.

 The licensee shall pay the subsidy received from the Government to the entitled

class of consumers in proportion to their energy consumption on actual basis by

way of adjustment in the electricity bill.

 The licensee shall keep proper accounts of subsidy in such a manner as

approved by the Commission and render the same to the Commission within 30

days of the closure of the Year of account.

 The difference between the subsidy received from the Government and actual

disbursement to the entitled class of consumers shall be adjusted in the next

year.”

186. In view of the notification of the new regulations which has taken into account the

provisions of vesting orders and other related developments, the Commission has

decided to take up the truing up exercise based on the OERC wheeling &Retail Supply

Tariff Regulation, 2022. Taking into account the provisions of the said regulations the

truing up for the both years latest FY 2020-21 and FY 2021-22 have been carried out on

the following principles.

a) Employee cost- The employee cost has been termed as controllable factor in the

regulation. However, the employee cost approved in the ARR for the first year of

operation was based on the filing of the erstwhile utilities. The Commission,

considering lower approval for erstwhile Utilities, allowed additional expenses to

131

the new DISCOMs for the year. The Commission has therefore taken into account

following facts while approving employee cost:

(i) Subsequent approvals accorded in the respective Annual Business Plan

Orders

(ii) New recruitment allowed after taking over.

(iii) the expenditure booked in the audited accounts.

(iv) the projection towards actuarial valuation for contribution to the trusts

have been deducted and considered only actual cash out go for the

terminal benefits as per the vesting orders.

(v) The cost of outsourced expenses has been included in the employees

cost in the ARR.

b) The Cost towards R&M and A&G expenses have been allowed as per the

approved and audited figure whichever is lower.

c) Bad and Doubtful Debt have been allowed @1% of the actual revenue.

d) Interest on Security deposit, CAPEX loan and working capital loan has been

allowed as per the audited account on actual basis.

e) Income Tax has been allowed which has been actually paid and reflected in the

audited accounts.

f) Return on Equity has been allowed @16% per annum on the actual equity

reflected in the audited accounts.

g) Non-Tariff Income (NTI) has been allowed excluding meter rent, incentive and

arrear collection and amortisation of consumer contribution and grant.

h) Revenue has been allowed as per the actuals reflected in the audited accounts.

i) Power purchase cost derived as per the cost reflected in the audited accounts and

further adjusted as per regulation 3.14 wherein the calculation of gains and loss

arising from over achievement or under achievement of AT&C loss reduction vis-

à-vis the regulated AT&C loss has been considered.

187. Accordingly, the Commission has considered the provisions of the OERC Wheeling &

Retail Supply Tariff Regulations, 2022, the Annual Business Plan Orders for respective

DISCOMs and relevant orders towards O&M cost while approving the true up expenses

in respect of TPCODL, TPWODL and TPSODL for the FY 2020-21 and for all four

DISCOMs (TPNODL, TPSODL, TPCODL, TPWODL) for the FY 2021-022.

188. The following table summaries such approvals against the proposals.

132

Table - 68

TRUE UP FOR FY 2020-21 (JUNE 2020 TO MARCH 2021)

TRUE UP OF

TPCODL

Approved

in the

ARR

2020-21

Cost

further

allowed

in ABP

Total

Approval

including

ABP

TPCODL

June 20 to

March 21

(Pro rated)

TPCODL

June 20 to

March 21

(Proposed)

Audited

(10

months)

Allowed in

true up

Expenditure

Cost of Power

Purchase

2709.86

2709.86 2258.22 1982.73 2033.87 1985.25

Employee

costs

622.15

48.3

6

670.51

566.82

584.44

589.62

566.

82

Repair &

Maintenance

139.62 26.28 165.90 142.63 142.33 142.34 142.34

Administrative

and General

Expenses

70.82 37.85 108.67 96.87 84.72 135.53 84.72

Provision for

Bad & Doubtful

Debts

30.25

30.25 25.21 28.12 28.12 28.12

Interest on

security deposit

38.77

38.77 32.31 22.19 22.19 22.19

Depreciation

94.56

94.56 78.80 15.33 75.64 15.33

Interest on

Working capital

35.16 10.98 10.98

Interest on long

term debt

31.04

31.04 25.87 1.40

Finance cost

1.21

Su

b

-

Total

3737.07

3849.56 3226.72 2897.63 3038.29 2855.75

Less: Employee

cost capitalised

15.40

15.40 12.83

2.73 2.73

(A)Total

expenses

3721.67

3834.16 3213.89 2897.63 3035.56 2853.02

Income Tax

13.90 0 0

Re

turn

on equity

11.64

11.64 9.70 41.32 0 40.00

(B) Sub total

11.64

11.64 9.7 55.22 0 40.00

TOTAL(A+B)

3733.31

3845.80 3223.59 2952.85 3035.56 2893.02

Less

Miscellaneous

Receipt

178.98

178.98 149.15 47.60 168.32 57.78

Receipt on

account of open

acces

s

20.79

Total Revenue

Requireme

nt

3554.33

3666.82 3074.44 2884.46 2867.24 2835.24

Revenue from

Sale of Power

3569.58

3569.58 2974.65 2791.58 2812.13 2812.13

GAP(+/-) 15.25

-97.24 -99.79 -92.88 -55.11 -23.11

133

Table - 69

Table - 70

True up expenses allowed to TPCODL for FY 2021-22

TRUE UP OF TPCODL TRUE UP FOR FY 2021-22

Approved

in the ARR

2021-22

Proposed FY

2021-22

Audited

FY 2021-

22

Allowed in

true up

Expenditure

Cost of Power Purchase

2890.79

2688.68

2715.66

2688.74

Employee costs

605.70

776.62

767.76

722.82

Repair & Maintenance

202.94

203.

00

203.25

202.94

Administrative and General

Expenses

8

2.94

123.00

174.77

123.00

Provision for Bad & Doubtful

Debt

s

32.05

39.78

Depreciation

43.57

41.25

117.80

41.25

Interest on Working capital

0

43.92

52.76

43.92

Interest on consumer security

deposit

33.45

31.64

Interest on long t

erm loan

0.00

9.06

Financi

ng cost

0.

99

0.99

Sub

-

Total

3891.44

3957.94

4104.41

3904.14

Less: Employee cost capitalised

22.34

(A)Total expenses 3891.44

3935.60

4082.07

3926.48

Defered tax provision

10.16

Return on equity 48.00

59.00

0.00

59.00

Tax on

ROE

19.93

(B) Sub total

48.00

78.93

10.16

59.00

TOTAL(A+B) 3939.44

4014.53

4092.23

3985.48

Adjustment towards Power Purchase Cost FY 2020-21 (TPCODL)

Approved AT &C loss

%

A

23.70%

N

ormative col

lection effici

ency

%

B

99.00%

Calculated distribution loss

%

C=1

-

(1

-

A)/B

22.93%

Actual AT & C loss achieved

%

D

Actual

collection efficiency

%

E

Actual distribution loss

%

F

Actual sales

MU

G

5226.13

Actual power purchase

MU

H

6960.

62

Normativ

e power purcha

se

MU

I=G/(1

-

C)

6780.96

Additional power purchase

MU

J=H

-

I

179.66

Approved BSP

Paise/Unit

K

270.6

Additional power purchase cost incurred

towards deviation from calculated

distribution loss

Rs. Cr. L=JxK/1000 48.62

Amount eligible for loss or gain to be

born by distribution licensee

Rs. Cr. L 48.62

134

TRUE UP OF TPCODL TRUE UP FOR FY 2021-22

Approved

in the ARR

2021-22

Proposed FY

2021-22

Audited

FY 2021-

22

Allowed in

true up

Less: Miscellaneous

Receipt

104.80

107.08

224.36

87.21

Receipt on account

of CSS

0

Total Revenue Requirement 3834.64

3907.45

3867.87

3898.27

Revenue from Sale of Power 3835.58

3,932.00 3,978.05 3,978.05

GAP(+/-) 0.94

24.55

110.18

79.78

Repayment of ASL

23

7.84

Total Gap considered for True

up -213.29

Adjustment towards Power

purchase cost

Approve

d AT &C loss

%

A

23.70%

Normative collection efficiency

%

B

99.00%

Calculated distribution loss

%

C=1

-

(1

-

A)/B

22.93%

Actual AT & C los

s achieved

%

D

Actual

collection efficiency

%

E

Actual distribution loss

%

F

A

ctual sales

MU

G

6722

Ac

tual power purchase

MU

H

8817

Normative power purchase

MU

I=G/(1

-

C)

8721.86

Additional power purchase

MU

J=H

-

I

95.14

Approved BSP

Pais

e/Unit

K

283

Additional power purchase cost

incurred towards deviation from

calculated d

istribution

loss

Rs. Cr.

L=JxK/1000

26.92

Amount eligible for loss or gain to

be born by distribution licensee

Rs. Cr.

L

26.92

Table-71

True up expenses allowed to TPSODL for FY 2020-21

TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)

TRUE UP OF

TPSODL

Approved

in the ARR

2020-21

TPSODL Jan

21 to March

21 (Pro rated)

TPSODL Jan

21 to March

21 (Proposed)

Audited (3

months)

Allowed in

true up

Expenditure

Cost of Power

Purchase

855.17

213.79

198.76

200.29

209.68

Employee costs

370.88

92.72

91.12

120.61

96.66

Re

pair & Maintenance

45.96

11.49

1.28

Administrative and

General Expenses

35.49

8.87

13.53

8.87

135

TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)

TRUE UP OF

TPSODL

Approved

in the ARR

2020-21

TPSODL Jan

21 to March

21 (Pro rated)

TPSODL Jan

21 to March

21 (Proposed)

Audited (3

months)

Allowed in

true up

Provision for Bad &

Doubtful D

ebts

10.79

2.70

3.53

2.70

Depreciation

29.03

7.26

6.89

6.91

Interest on Working

capital

4.40

0.09

Interest on long term

debt

11.74

2.94

0.09

1.49

Interest on consumer

security deposit

13.74

3.44

3.15

Eficiency gains on

account of AT & C

losses

12.64

Sub

-

Total

1372.80

343.20

335.39

350.88

330.83

Less: Expenses

capitalise

d

(A)Total expenses

1372.80

343.20

335.39

350.88

330.83

Income Tax

4.93

0

Return on equity

6.03

1.51

8.00

0

8.00

(B) Sub total 6.03

1.5075

12.93

0

8.00

TOTAL(A+B)

1378.83

344.71

348.32

350.88

338.83

Less Miscellaneous

Re

ceipt

39.77

9.94

11.59

29.25

16.08

Receipt on account of

CSS

Total Revenue

Requirement

1339.06

334.77

336.73

321.63

322.75

Revenue from Sale

of Power

1345.96

336.49

353.00

355.38

GAP(+/-)

6.90

1.72

16.27

33.75

32.63

Adjustment towards Power purchase cost

Approved AT &C loss

%

A

25.75%

Normative collection

efficiency

%

B

99.00%

Calculated

distribution loss

%

C=1

-

(1

-

A)/B

25.00%

Actual AT & C loss

achieved

%

D

Actual collection

efficiency

%

E

Actual distribution

loss

%

F

Actua

l sales

MU

G

718

Actual power

MU

H

902

136

TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)

TRUE UP OF

TPSODL

Approved

in the ARR

2020-21

TPSODL Jan

21 to March

21 (Pro rated)

TPSODL Jan

21 to March

21 (Proposed)

Audited (3

months)

Allowed in

true up

purchase

Normative power

purchase

MU

I=G/(1

-

C)

957.33

Additional power

purchase

MU

J=H

-

I

-

55.3

3

Approved BSP

Paise/Unit

K

197.40

Additional power

purchase cost incurred

towards deviation

from calculated

distribution loss

Rs. Cr.

L=JxK/1000

-

10.92

Amount eligible for

loss or gain to be born

by distribution

licensee

Rs. Cr.

L

-

10.92

Table - 72

True up expenses allowed to TPSODL for FY 2021-22

TRUE UP FOR FY 2021-22

TRUE UP OF TPSODL Approved

in the ARR

2021-22

Approved

in ABP

Total

Approval

FY 2021-22

Total

Proposed

FY 2021-22

Audited

FY

2021-22

Allowed

in true up

Expenditure

Cost of Power Purchase

964.22

964.22 916.58 926.33 944.23

Employee costs

404.76

404.76 413.83 463.10 421.53

Repair & Maintenance

55.36 33.21 88.57 90.68 90.68 88.57

Administrative and General

Expenses

45.13 27.07 72.20 96.77 111.47 72.20

Provision for Bad &

Doubtful Debts

12.21

12.21 16.55 16.55 16.55

Depreciation

21.47

21.47 28.29 28.29 21.47

Interest

on Working capital

19.67 15.11 15.11

Interest on consumer

security deposit

11.60

11.60 11.92 11.92 11.92

Interest on long term loan

4.6

0

Efficiency gains on account

of AT & C losses

22.78

Sub

-

Total

1514.75

1575.03 1621.67 1663.45 1591.57

Less: Employee cost

capitalised

2.17

(A)Total expenses

1514.75

1575.03 1621.67 1665.62 1591.57

Income Tax

20.80 20.60 20.60

137

TRUE UP FOR FY 2021-22

TRUE UP OF TPSODL Approved

in the ARR

2021-22

Approved

in ABP

Total

Approval

FY 2021-22

Total

Proposed

FY 2021-22

Audited

FY

2021-22

Allowed

in true up

Return

on equity

32.00

32.00 35.48

35.48

(B) Sub total

32.00

32.00 56.28 20.60 56.08

TOTAL(A+B)

1546.75

1607.03 1677.95 1686.22 1647.65

Less Miscellaneous Receipt

25.56

25.56 42.49 92.93 60.88

Receipt on account of CSS

0

Total Revenue

Requirement

1521.19

1581.47 1635.46 1593.29 1586.77

Revenue from Sale of

Power

1522.73

1522.73 1640 1654.63 1654.63

GAP(+/-)

1.54

-58.74 4.54 61.34 67.86

Total Gap considered for

True up

Adjustment towards Power purchase cost

Appro

ved AT &C loss

%

A

25.75%

Normative collection

e

fficiency

%

B

99.00%

Calculate

d distributi

on loss

%

C=1-(1-

A)/B

25.00%

Actual AT & C loss

achieved

%

D

Actual collection efficiency

%

E

Actual distribution loss

%

F

Actual sales

MU

G

3021

Actual power purchase

MU

H

3941.54

Normative

power purchase

MU

I=G/(

1

-

C)

4028.00

Additiona

l power purchase

MU

J=H

-

I

-

86.46

Approved BSP

Paise/Unit

K

207.00

Additional power purchase

cost incurred towards

deviation from calculated

distribution loss

Rs. Cr.

L=JxK/1000

-

17.90

Amount eligible for loss or

gain to be born by

distribution

licensee

Rs. Cr.

L

-

17.90

138

Table - 73

True up expenses allowed to TPWODL for FY 2020-21

TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)

TRUE UP OF TPWODL

Approved in

the ARR

2020-21

TPWODL Jan

21 to March 21

(Pro rated)

TPWODL

Jan 21 to

March 21

(Proposed)

Audited

(3months)

Allowed in

true up

Expenditure

Cost of Power Purchase

2633.22 658.31 692.05 689.80 660.68

Employee cost

s

361.02 90.26 116.38 101.70 101.70

Repair

& Maintenance

92.24 23.06 5.75 5.75 5.75

Administrative and General

Expenses

52.80 13.20 22.07 36.76 13.20

Provision for Bad & Doubtful

Debts

22.95 5.74 8.53 8.53 5.74

Depreciation

61.40 15.35 16.40 16.40 15.35

Interest on Working capital

0 0.00 8.88 2.95 2.95

Interest on consumer security

deposi

t

38.62 9.66 10.94 8.00 8.00

Interest on long term loan

14.58 3.65

0

Sub

-

Total

3276.83 819.21 881.00 869.89 813.36

Less: Employee cost

capitalised

(A)Total expenses

3276.83 819.21 881.00 869.89 813.36

Income Tax

(B)Return on equity

7.78 1.95 12.00 0.00 12.00

TOTAL(A+B)

3284.61 821.15 893.00 869.89 825.36

Less Miscellaneous Receipt

191.39 47.85 28.34 44.93 44.93

Receipt on account of CSS

46.57 46.57

Total Revenue Requirement

3093.22 773.31 864.66 778.39 733.86

Revenue from Sale of Power

3128.91 782.23 894.19 847.62 847.62

GAP(+/-)

35.69 8.92 29.53 69.23 113.76

Adjustment towards Power purchase Cost

Approved AT &C loss

% A 19.60%

Normative collection

efficiency

% B 99.00%

Calcula

ted distribution loss

% C=1-(1-A)/B 18.79%

Actual AT & C

loss achieved

% D

Actual collection efficiency

% E

Actual distribution loss

% F

Actual sales

MU G 1561.53

Actual power purchase

MU H 2013.06

Normative

power purchase

MU I=G/(1-C) 1922.78

Additional power purch

ase

MU J=H-I 90.28

Appr

oved BSP

Paise/Unit K 322.6

139

Additional power purchase

cost incurred towards

deviation from calculated

distribution loss

Rs. Cr.

L=JxK/1000

29.12

Amount eligible for loss or

gain to be born by distribution

licensee

Rs. Cr.

L

29.12

Table - 74

True up expenses allowed to TPWODL for FY 2021-22

TRUE UP FOR FY 2021-22

TRUE UP OF TPWODL Approved

in the

ARR

2021-22

Approved

in ABP

Total

Approval

Proposed

2021-22

Audited

FY 2021-

22

Allowed

in true up

Expenditure

Cost of Power Purchase 3140.48

3140.48 3333.66 3338.17

3310.91

Employee costs 409.49

409.49 483.68 456.35

412.35

Repair & Maintenance 109.22 50.78 160.00 137.05 137.06

137.05

Administrative and General

Expenses

63.66 39.51 103.17 113.27 146.23

103.17

Provision for Bad &

Doubt

ful Debts

27.42

27.42 45.03 45.03

45.03

Depreciation 36.34

36.34 24.45 81.12

24.45

Interest on Working capital 34.37

34.37 51.65 9.98

9.98

Interest on consumer security

deposit

32.95 32.95

32.95

Interest on long term loan

0

Sub-Total 3820.98

3911.27 4221.74 4246.89

4075.90

Less: Employee cost

capitalised

5.64

(A)Total expenses 3820.98

3911.27 4221.74 4252.53

4081.54

Arrear collection Incentive

11.92

Return on equity 48.00

48.00 68.85 52.79

(B) Sub total 48.00

48.00 80.77 0.00

52.79

TOTAL(A+B) 3868.98

3959.27 4302.51 4252.53

4134.33

Less Miscellaneous Receipt 237.45

237.45 117.44 234.36

142.67

Receipt on account of CSS

0

Total Revenue

Requirement

3631.53

3721.82 4185.07 4018.17

3991.66

Revenue from Sale of

Power

3705.75

3705.75 4691.85 4691.86

4691.86

GAP(+/-) 74.22

-16.07 506.78 673.69

700.20

Carrying Cost

18.75

Total Gap considered for

525.53

140

TRUE UP FOR FY 2021-22

TRUE UP OF TPWODL Approved

in the

ARR

2021-22

Approved

in ABP

Total

Approval

Proposed

2021-22

Audited

FY 2021-

22

Allowed

in true up

True up

Adjustment towards power purchase Cost

Total Gap considered for

True up

Approved AT &C loss % A 20.40%

Normative collection

efficiency

% B 99.00%

Calculated distribution loss % C=1-(1-

A)/B

19.60%

Actual AT & C loss achieved % D

Actual collection efficiency % E

Actual distribution loss % F

Actual sales MU G 7423

Actual power purchase MU H 9313

Normative power purchase MU I=G/(1-C) 9232.12

Additional power purchase MU J=H-I 80.88

Approved BSP Paise/Unit K 337

Additional power purchase

cost incurred towards

deviation from calculated

distribution loss

Rs. Cr. L=JxK/1000

27.26

Amount eligible for loss or

gain to be born by

distribution licensee

Rs. Cr. L 27.26

Table - 75

True up expenses allowed to TPNODL for FY 2021-22

N LONG TRUE UP FOR FY 2021-22

TRUE UP OF

TPNODL

Approved

in the

ARR

2021-22

Approved

in ABP

Total

Approval

FY 2021-22

Total

Proposed FY

2021-22

Audited

FY 2021-22

Allowed

in true

up

Expenditure

Cost of Power Purchase

2047.25

2047.25 1853.85 1836.76 1853.49

Emplo

yee costs

357.24

357.24 486.55 436.79 417.86

Repair & Maintenance

114.23 33.26 147.49 117.66 130.36 117.66

Administrative and

General Expenses

49.20 29.52 78.72 105.24 105.24 78.72

Provision for Bad &

Doubtful Debts

14.84

14.84 25.56 25.56 25.56

Depr

eciation

32.86

32.86 23.58 89.34 23.58

141

Interest on Working

capital

18.98 18.98

Interest

on long term loan

3.56

Interest on consumer

security deposit

26.78

26.78 58.92 26.25 26.25

Sub

-

Total

2642.40

2705.18 2674.92 2669.28 2562.10

Less: Expenses

capital

ised

(A)Total expenses

2642.40

2705.18

2669.28 2562.10

Income Tax

24.86

Return on equity

40

40.00 43.60

43.60

(B) Sub total

40

40.00 68.46 0 68.46

TOTAL(A+B)

2682.40

2745.18 2743.38 2669.28 2630.56

Less Miscellaneous

Receipt

137.42

137.42 140.43 239.53 140.43

Receipt on account of

CSS

Total Revenue

Requirement

2544.98

2607.76 2602.95 2429.75 2490.13

Revenue from Sale of

Power

2545.61

2545.61 2555.72 2555.72 2555.72

GAP(+/-)

0.63

-62.15 -47.23 125.97 65.59

Total Gap considered

for True up

Approved AT &C loss

% A 19.17%

Normative collection

efficiency

% B 99.00%

Calculated distribution

loss

% C=1-(1-

A)/B

18.35%

Actual AT & C loss

achieved

% D

Actual collection

efficiency

%

E

Act

ual distributi

on loss

%

F

Actual sales

MU

G

4392

Actual power purchase

MU

H

5327

Normative power

purchase

MU

I=G/(1

-

C)

5379.29

Additional power

purchase

MU

J=H

-

I

-

52.29

Approved BSP

Paise/

Unit

K

320

Additional power

purchase cost incurred

towards deviation from

calculated distribution

loss

Rs. Cr.

L=JxK/1000

-

16.73

142

Amount eligible for loss

or gain to be borne by

distribution licensee

Rs. Cr.

L

-

16.73

TERM LOAN ON NORMATICCCCCTEREST ON LONG TERM LOAN ON NORMA

189. The Commission hereby finalises the truing up of expenses of the new DISCOMs

(TPCODL, TPSODL, TPWODL & TPNODL) for the FY 2020-21 and FY 2021-22.

The Commission finds that the actual expenses booked in the audited accounts are

higher than the approved costs for most of components, particularly for O&M.

However, DISCOMs have booked higher Revenues also against the approved Revenues

in the ARR. The DISCOMs have proposed to allow the higher costs owing to the

operational requirement during these initial two years of the operations i.e FY 2020-21

and 2021-22. The Commission observes these proposed higher costs can only be

verified through relevant information/data, field visits and third party audit.

TARIFF DESIGN

The present tariff structure

190. In line with the prevailing practice of tariff design, the Commission has decided to

continue with the prevailing practice of single part, two part and three part tariffs for the

ensuing year. While single part tariff is applicable to consumers covered under Kutir

Jyoti, the other categories of consumers are covered under two part and three part

tariffs.

191. Two part tariff covers LT consumers with connected load/contract demand less than

110 kVA and such consumers will have to pay MMFC (Rs./kW or KVA) and energy

charges.

192. Three part tariff is applicable to HT and EHT consumers with contract demand of 110

kVA and above and such consumers will have to pay demand charges (Rs./kVA),

energy charges (Rs./KVAh) and customer service charge (Rs./month).

Single Part Tariff

Kutir Jyoti consumers: Fixed Monthly Charge (Rs./Month) for consumption upto 30

units per month.

Two Part Tariff – for LT Supply less than 100 KW / 110 kVA

All classes of consumers other than Kutir Jyoti

(a) Energy Charge (kWh) (Paise/unit)

143

(b) Monthly Minimum Fixed Charge (MMFC) (Rs./KW/Month)

Three Part Tariff - LT consumers with connected load 110 kVA and above

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)

(c) Customer Service Charge (Rs./Month)

HT Consumers

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)

(c) Customer Service Charge (Rs./Month)

EHT Consumers

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)

(c) Customer Service Charge (Rs./Month)

193. In addition, certain other charges like prompt payment rebate, meter rent, delayed

payment surcharge, over drawal penalty, incentive and other miscellaneous charges,

etc. are payable under different circumstances as mentioned in the later part of this

order.

194. The Commission has decided, RST structure for the FY 2023-24 in general will remain

uncharged and most of the applicable charges for various category of consumers will

remain same as that of FY 2022-23. The details of charges applicable to various

categories of consumers classified under the OERC Distribution (Conditions of Supply)

Code, 2019 are discussed hereafter.

(a) Tariff for LT Consumers availing Power Supply at LT

195. The consumers availing power supply at LT with CD less than 110 kVA or 100 KW

have to pay Monthly Minimum Fixed Charge (MMFC) and energy charges as described

below:

(a) The MMFC is payable by the LT consumers with contract demand less than 110

kVA.

(b) The Commission has decided that the rate of MMFC determined for FY 2022-

23 shall continue for FY 2023-24.

144

Table – 76

MMFC for LT consumers

Sl.

No

Category of Consumers Monthly Minimum

Fixed Charge

(MMFC) for first

KW or part (Rs.)*

Monthly Minimum

Fixed Charge

(MMFC) for any

additional KW or part

(Rs.)

Approved For FY 2023-24

LT Category

1.

Domestic (other than Kutir Jyoti)

20

2.

Ge

ne

ral

Purpose LT

(<1

10 kVA)

30

3.

Irr

igation Pumping and Agriculture

20

10

4

.

All

i

ed Agricultura

l Activities

20

10

5.

Allied Agro

-

I

ndus

trial Activities

80

50

6.

Public L

ighting

20

15

7

.

LT Industrial (S) Supply

80

35

8.

LT

Industrial (M) S

upply

1

00

80

9.

Specifi

ed

Public P

urpose

50

10. Public Water Works and Sewerage

Pum

ping <

1

10 kVA

50 50

* When agreement stipulates supply in kVA this shall be converted to kW by

multiplying with a power factor of 0.9 as per Regulation 2 (20) of OERC Distribution

(Conditions of Supply) Code, 2019.

196. Some consumers with connected load less than 110 kVA might have been provided

with simple energy meters which record energy consumption and not the maximum

demand. But the OERC Distribution (Conditions of Supply) Code, 2019, provides that

“Contract Demand for connected loads of 110 kVA and above shall be as stipulated in

the agreement and may be different from the connected load. Contract Demand for a

connected load below 110 kVA shall be the same as connected load. However, in case

of installation with static meter/meter with provision of recording demand, the recorded

demand rounded to nearest 0.5 KW shall be considered as the contract demand

requiring no verification irrespective of the agreement. Therefore, for the purpose of

calculation of Monthly Minimum Fixed Charge (MMFC) for the connected load below

110 kVA or 100 KW, the above stipulation holds good. The licensees are directed to

follow the above provision of Regulation strictly.

145

Energy Charge (Consumers with Connected Load less than 110 kVA)

Domestic

197. The Commission is aware of the paying capability of Below Poverty Level (BPL)

consumers. Therefore, the Kutir Jyoti consumers will only pay the monthly minimum

fixed charge @ Rs.80/- per month for consumption upto 30 units per month. In case,

these consumers consume in excess of 30 units per month, they will be billed like any

other domestic consumers depending on their consumption and will lose their BPL

status from that month onwards.

198. The Commission is also conscious of affordability of non-Kutir Jyoti consumers.

Keeping this in view the Energy Charges for supply to LT domestic consumers using

low tension system remains unchanged for FY 2023-24 which are given below:

Domestic consumption slab per month Energy charge

Upto and including 50 Units 300 paise per unit

From 51 to 200 units 480 paise per unit

From 201 to 400 units 580 paise per unit

More than 400 units consumption 620 paise per unit

199. In accordance with the provisions under the OERC Distribution (Condition of Supply)

Code, 2019, initial power supply shall not be given without a correct meter. Load factor

billing has been done away with since 1st April, 2004, as stipulated in the

Commission’s RST order for FY 2003-04. As such the licensees are directed not to bill

any consumer on load factor basis.

General Purpose LT (<110 kVA)

200. The Commission reviewed the existing tariff structure and decided to continue with

existing rate for GP LT category of consumers.

Table - 77

Slab Energy charge (P/U)

F

irst 10

0

units

590

0 units

700

Balance units

760

146

Irrigation Pumping and Agriculture

201. The Commission decides that the Energy Charge for this category shall be 150 paise

per unit for supply at LT level as usual. Consumers in the irrigation pumping and

agriculture category availing power supply at HT level will pay 140 paise per unit

(kVAh) as usual.

Allied Agricultural Activities

202. The Commission decides that the tariff of this category shall continue at 160 paise per

unit (kWh) at LT level and 150 paise per unit (kVAh) at HT level.

Allied Agro-Industrial Activities

203. The Commission decides to revise the tariff downward to 310 paise per unit (kWh) at

LT level and 300 paise per unit (kVAh) at HT level. This downward revision has been

made considering the requirement of cold storage in our State which would help in

preserving the agro-produce.

Energy Charges for Other LT Consumers

204. The Commission, keeping its objective of rationalisation of tariff structure by

progressive introduction of a cost-based tariff, has linked the Energy Charge at different

voltage levels to reflect the cost of supply. The following tariff structure is continued

for FY 2023-24 for all loads at LT level except domestic, Kutir Jyoti, general purpose,

irrigation pumping, allied agricultural activities and allied agro-industrial activities.

Voltage of Supply Energy Charge

LT 620 paise per unit

The above rate shall apply to the following categories of LT consumers:

1) Public lighting

2) LT industrial(S) supply <22 KVA

3) LT industrial(M) supply >=22 KVA <110 KVA

4) Specified Public Purpose

5) Public Water works and Sewerage pumping < 110 KVA

6) Public Water works and Sewerage pumping >= 110 KVA

7) General Purpose >= 110 KVA

8) Large Industries >=110 KVA

Tariff for consumers availing power supply at LT level with contract demand of

110 kVA and above are given hereunder.

147

Customer Service Charge at LT level

205. As explained earlier, these categories of consumers are required to pay three part tariff.

The existing customer service charge for consumers with connected load of 110 kVA

and above shall continue for FY 2023-24 as given in Table below.

Table - 78

Category Voltage of

Supply

Customer Service Charge

(Rs. per Month)

Public Water Works and

Sewerage Pumping

(=>110kV

A)

LT 30

G

ener

al Purpose (=>110kVA)

LT

30

Large Indus

try

>=110

kVA

LT

30

Demand charges at LT level

206. The Commission examined the existing level of Demand Charge of Rs.200/kVA/month

payable by the consumers with a contract demand of 110 kVA and above and decides

not to revise it. This shall include Public Water Works and Sewerage Pumping, General

Purpose Supply and Large Industry of contract demand of 110 kVA or more.

Voltage of Supply Demand charge

LT (110 kVA & above) Rs.200/ kVA/month

Tariff For HT & EHT Consumers

(i) Customer Service Charge for consumers with contract demand of 110 kVA

and above at HT & EHT level

207. All the consumers at HT and EHT level having CD of 110 kVA and above are liable to

pay customer service charge. This charge is meant for meeting the expenditure of the

licensees on account of meter reading, preparation of bills, delivery of bills, collection

of revenue and maintenance of customer accounts etc. The licensee is bound to meet

these expenses irrespective of the level of consumption of the consumer. The customer

service charges shall continue as it is as per details given in the table below:

Table – 79

Category Voltage of

Supply

Customer service

charge (Rs./month)

Bulk Supply (Domestic)

HT

Rs.250/- for all