8-Cesc - Chapter - 6 PDF
8-Cesc - Chapter - 6 PDF
8-Cesc - Chapter - 6 PDF
CHAPTER – 6
6.0 Revision of Retail Supply Tariff for FY20-CESC’s Proposals and Commission’s
Decisions:
As per the Tariff application filed by the CESC, it has projected an unmet gap
in revenue of Rs.630.75 Crores for FY20, which also includes the gap in
revenue of Rs.223.03 Crores for FY18. In order to bridge this gap in revenue,
CESC has proposed to increase both the fixed and energy charges with an
average tariff increase of 100 paise per unit, in respect of all the categories of
consumers.
In the previous chapters of this Order, the Annual Performance Review (APR)
for FY18 and the approval of ARR for FY20-22 has been discussed. The various
aspects of determination of tariff for FY20 are discussed in this Chapter.
As per Section 61 of the Electricity Act, 2003, the Commission is guided inter-
alia, by the National Electricity Policy, the Tariff Policy and the following factors,
while, determining the tariff so that;
Section 62(5) of the Electricity Act, 2003, read with Section 27(1) of the
Karnataka Electricity Reform Act, 1999, empowers the Commission to specify,
from time to time, the methodologies and the procedure to be observed by
the licensees in calculating the Expected Revenue from Charges (ERC). The
Commission determines the Tariff in accordance with the Regulations and the
Orders issued by the Commission from time to time.
a) Tariff Philosophy:
The Commission has been determining the retail supply tariff on the basis
of the average cost of supply. The KERC (Tariff) Regulations, 2000, as
amended from time to time, require the licensees to provide the details of
embedded cost of electricity voltage / consumer category-wise. The
distribution network of Karnataka is such that, it is difficult to segregate the
common cost between voltage levels. Therefore, the Commission has
decided to continue the average cost of supply approach for recovery of
the ARR. With regard to the indication of voltage- wise cross subsidy with
reference to the voltage-wise cost of supply, the same is indicated in the
Annexure to this Order.
c) Differential Tariff:
The Commission has been determining differential retail supply tariff for
consumers in urban and rural areas, beginning with its Tariff Order dated
25th November, 2009, for the reasons cited therein. The Commission
decides to continue the same in the present Order also.
CESC Proposal:
CESC, in its application has submitted that, in the present tariff design, the
club houses located in the residential apartments are classified under tariff
schedule LT2(a), whereas the individual club-houses are classified under
commercial tariff-LT3.
On the above issues, CESC has proposed to classify under commercial tariff
the club houses/ gym/ sport facilities of the apartment complexes, where
non-resident members / guests of residents of the apartments are allowed to
vail the facilities or outsiders are allowed to run the same on rental basis.
The Commission notes that, Club houses/ gym/ sport facilities available in the
apartments/ complexes are generally meant for the bonafide use of the
residents who are part of such residential apartments/ complexes. These
facilities are generally managed by the welfare associations formed by the
residents and in some cases, may be let out to outsiders to manage it, if the
Association is not in position to manage these facilities. The fee and charges
collected from the members, for the use of such facilities are utilised to
upkeep/ maintain and manage such facilities. Stray incidents of use of such
facilities by outsiders cannot be generalised. The CESC has not furnished any
data as to the number of such installations in its jurisdiction, being used for
commercial purposes and the amount of revenue it is losing. The Commission
also notes that all the activities listed by the CESC are allowed to be billed
under HT-4 tariff schedule, if the consumer avails the connection under HT
category. Further, separate classification based on use of facilities by non-
residents would lead to disputes.
CESC in its filing has submitted that the Commission, in its Tariff Order 2018,
dated 14.05.2018, has extended an HT incentive scheme in an attempt to
bring back the EHT/HT consumers who are availing power through open
access. In the said incentive scheme, rebate of Re.1 per unit for the
consumption over and above the base consumption during 10:00 hours to
18:00 hours and rebate of Rs.2 per unit during 22:00 hours to 06:00 hours is
extended. Further, during 10:00 hours to 18:00 hours if the SIS consumer’s
consumption during 10:00 hours to 18:00 hours does not exceed the base
consumption, still rebate of Rs.2 per unit is extended during 22:00 hours to
06:00 hours. It is stated that HT incentive scheme would only benefit a small
percentage of industries who operate three shifts. Few industries that have a
third shift usually use it for maintenance. This is one of the reason for HT
industries not opting for Special Incentive Scheme. By fixing the base
consumption for the overall consumption per month (average of 12 months),
instead during 10:00 hours to 18:00 hours and allowing rebate of Re.1 per unit
is for all the consumption over and above the base consumption, more HT
consumers may opt for the HT incentive scheme.
CESC has further submitted that, as per the Commission decision vide letter
No. KERC /DD(Tariff)/B/7/14/858, dated: 04.09.2018, the Special Incentive
Scheme is applicable to consumers who are procuring energy whether partly
or fully to meet their consumption from ESCOMs. Furthermore, consumers who
have opted for the scheme are not barred from procuring power from third
party sources through open access in addition to power from the ESCOMs.
The HT consumers are sourcing their energy from various sources from solar
generators, wind generators, mini hydel generators, group captive and also
from IEX to reduce their energy charges. Such consumers fall back on CESC
only for fulfilment of their balance energy. These HT consumers have an
agreement with the generators for a span of 5 to 10 years. If the Special
Incentive Scheme becomes applicable to such HT consumers (open access),
then the metered sales of CESC will not increase. CESC through this incentive
scheme, is attempting to generate additional revenue from HT consumers by
encouraging them to consume over and above the average 12 months’
consumption by offering a concessional tariff rate. In case the consumers get
attracted to this scheme, HT sales may go up, which would in turn help CESC
to come closer to achieving the HT sales target approved by the Commission
and have a positive impact on the cross subsidy also, which in turn could
reduce the subsidy burden on State Government for the respective year/s. It
is stated that, CESC is restricting the HT incentive scheme to its embedded
consumers only.
The Commission, in its Tariff Order dated 14th May,2018, has approved the
incentive of Rs.2 per unit for night consumption basically to encourage
industrial activity during the nights. The Commission further notes that
considering the very small number of consumers who have opted for the
Special Incentive Scheme during the last 9 months’ period, the revenue loss
projected by the CESC on the energy sales from these consumers may not
give the true picture of the implementation of the scheme. The Commission
has approved the Special Incentive Scheme to be in force for an initial period
of two years. Any pre mature modification to the scheme without conducting
detailed study within that period will affect the consumers who have already
opted for the scheme and also discourage other consumers from opting for
similar schemes if their declared tenure is modified / cut short mid-way. Thus
the Commission decides to continue the Special Incentive Scheme for FY20
also and the special incentive benefits is also extended for the OA consumer
who consume energy form the ESCOMs, by limiting the benefit to the energy
drawn from the ESCOMs only. The Commission also directs CESC to take up
an intensive campaign to encourage more industrial consumers to opt for this
scheme.
3. Additional Surcharge
CESC in its filing has stated that, it has tied up to buy adequate quantum of
power, on approval of the Commission, by considering the overall growth. A
large number of consumers are buying power under Open Access instead of
availing supply from CESC. As a result, the generation capacity tied up by
CESC remains idle.
To tide over the low demand situation, the CESC needs to back down the
generation and required to pay the Fixed Charges (or Capacity Charges) to
the Generators irrespective of actual power purchased. Thus, CESC by
stressing the need for recovery of the part of fixed cost towards the stranded
capacity arising out of the power purchase obligations, has proposed to
continue to recover the additional surcharge from the OA consumers
procuring power from power exchanges and RE generators as approved by
the Commission in the Order No. OP No.53/2017, dated 14.05.2018, for the
period from 01.04.2018 to 31.03.2019.
The Commission notes the submission made by the CESC for recovery of the
additional surcharge from OA consumer procuring power from power
exchange and RE generator. The Commission, considering the necessity of
recovery of the fixed cost towards stranded capacity arising out of the power
purchase obligation from the OA consumers procuring power from power
exchange and RE generators, decides to continue the levy of the additional
surcharge from 01.04.2019 to 31.03.2020, as determined in this Chapter.
a) Merge both rural and urban consumers under one tariff, as 24 hours’
supply is arranged to non-agricultural loads by implementing Nirantara
Jyothi Yojana (NJY) in rural areas.
c) CESC, in its filing has stated that, Private and Government hospitals are
classified under HT2(c) tariff category. The Government hospitals are
categorized under sub-category HT2c(i) tariff schedule and the
electricity tariff for this category of consumers is lower than the Industrial
tariff. As the facilities available in these institutions are generally used by
the common people and largely by the weaker section of the society,
CESC has agreed to extend the reduced tariff structure to this category.
d) However, the Private hospitals are classified under HT2c(ii) tariff schedule
and the electricity tariff for this category of consumers is less than the
commercial tariff category by 75 paise per unit to 95 Paise per unit.
Private Medical Care is evolving in major cities. The room tariffs of private
hospitals are equivalent to luxury hotels, provided with LED TV screens, Wi-
Fi, wi-fi internet connection and all other luxurious facilities. This is a
commercial activity and request the Commission to categorize these
installations under Commercial tariff schedule - HT2(b).
The Commission also notes the proposal of CESC, either to re-classify the
above installations into commercial categories or to increase their tariff
merely on the ground that they are operating on commercial lines and
are capable of paying higher cross subsidies. The Commission, in its Tariff
Order dated 6th May,2013, by considering the representations of the
Hospitals and Educational Institutions, requesting to charge their energy
consumption at a lower rate, as they are catering to the health care /
e) CESC, in its filing, has proposed the revision of the various charges as
indicated in the Conditions of Supply of Electricity of Distribution Licensee
in the State of Karnataka under Clause 30 of Chapter VIII, as these
charges are in force since 17th June 2006. Considering the present
inflation rates, CESC has proposed to revise the existing rates.
MESCOM, in its filing has stated that there is no specific tariff classification
for the religious institutions serviced under HT category. In the absence of
clear categorisation in the Tariff Order, the field officers are classifying
these installations belonging to temples, churches and other religious
institutions either under HT-2b category or HT-4 category.
Further, MESCOM has stated that under LT category such installations are
classified under LT-2(a) – Domestic category and has requested the
Commission to classify such installations under HT-4 tariff, which is being
applied to residential apartments /installations.
The Commission notes the request made by the MESCOM to classify the
religious institutions serviced under HT category under HT-4 tariff schedule
in line with the applicability of LT2(a) tariff meant for domestic consumers
under LT category.
Considering the approved ARR for FY20 and the revenue as per the existing
tariff, the resultant gap in revenue for FY20 is as follows:
Revenue Deficit for FY20
Amount. in Crores
Particulars Amount
Approved Net ARR for FY20 including gap of FY18 4,342.44
Less: Revenue at existing tariff 4,135.71
Surplus / (- )Deficit -206.73
Additional Revenue to be realised by Revision of Tariff 206.73
Accordingly, the Commission now proceeds to determine the Revised Retail
Supply Tariff for FY20. The category-wise tariff as existing, as proposed by
CESC and as approved by the Commission are as follows:
The existing tariff and the tariff proposed by CESC are as given below:
Sl. Details Existing as per 2018 Proposed by CESC
No Tariff Order
1 Energy charges 728 Paise / Unit
637 Paise / Unit
(including recovery Subject to a monthly
Subject to a monthly
towards service minimum of Rs.50 per
minimum of Rs.40 per
main charges) installation per
installation per month.
month.
Further, the ESCOMs have to claim subsidy for only those consumers who
consume 40 units or less per month per installation. If the consumption
exceeds 40 units per month or if any BJ/KJ installation is found to have more
than one out- let, it shall be billed as per the Tariff Schedule LT 2(a).
*Since GOK is meeting the full cost of supply to BJ / KJ installations, the Tariff
payable by these consumers is shown as nil. However, if the GOK does not release
the subsidy in advance, a Tariff of Rs. 6.93 per unit subject to a monthly minimum
of Rs.45 per installation per month, shall be demanded and collected from these
consumers by CESC.
CESC’s Proposal:
The details of the existing and proposed tariff under this category are given in
the Table below:
Applicable to areas coming under City Municipal Corporations and all Urban
Local Bodies
Fixed Charges per For the first KW Rs.50 For the first KW Rs.60
Month For every additional KW For every additional KW Rs.70
Rs.60
Energy Charges
0-30 units (life line 0 to 30 units:345 paise/unit 0 to 30 units: 436paise/unit
Consumption )
31 to 100 units:495 31 to 100 units: 586 paise
paise/unit / unit
Energy Charges
exceeding 30 units 101 to 200 units:650 paise 101 to 200 units: 741 paise
per month /unit /unit
Above 200 units:755 paise Above 200 units: 846 paise
/unit /unit
Commission’s decision:
As in previous Tariff Order, the Commission decides to continue with the two-
tier tariff structure in respect of domestic consumers as shown below:
(i) Areas coming under City Municipal Corporations and all Urban Local
Bodies.
(ii) Areas under Village Panchayats.
CESC’s Proposal:
The details of the existing and the proposed tariff under this category are
given in the Table below:
Commission’s decision:
As in the previous Tariff Order the Commission decides to continue with the
two- tier tariff structure as follows:
(i) Areas coming under City Municipal Corporation and all urban local bodies.
(ii) Areas under Village Panchayats.
CESC’s Proposal:
The existing and proposed tariff are as follows:
As in the previous Tariff Order, the Commission decides to continue with the
two tier tariff structure as below:
(i) Areas coming under City Municipal Corporations and other urban local
bodies.
Approved Tariff for LT- 3 (i) Commercial Lighting, Heating & Motive
Applicable to areas under City Municipal Corporations and other Urban Local
Bodies
Approved Tariff for Demand based tariff (Optional) where sanctioned load is
above 5 kW but below 50 kW
Approved Tariff for LT-3 (ii) Commercial Lighting, Heating and Motive
Applicable to areas under Village Panchayats
CESC’s Proposal:
The existing and proposed tariff for LT4 (a) are as follows:
Commission’s Decision:
Considering the cross subsidy contribution from categories other than IP Sets
and BJ/KJ Categories, the Commission determines the tariff for IP Sets under
LT4(a) category as follows:
Approved CDT for IP Sets for FY20
Particulars CESC
Approved ARR in Rs.Crores 4,342.44
Revenue from other than IP & BJ/KJ installations in Rs.Crores 2,828.43
Amount to be recovered from IP & BJ/KJ installations in Rs.Crores 1,514.01
Approved Sales to BJ/KJ installations in MU 97.45
Revenue from BJ/KJ installations at Average Cost of supply in Rs.Crores 67.53
Amount to be recovered from IP Sets category in Rs.Crores 1,446.48
Approved Sale to IP Sets in MU 2,528.81
Commission Determined Tariff (CDT) for IP set Category for FY19 in Rs/Unit 5.72
*In Case the GoK does not release the subsidy in advance, in the manner specified by
the Commission in clause 6.1 of the KERC (Manner of Payment of Subsidy)
Regulations,2008 CDT of Rs.5.72 per unit shall be demanded from these consumers.
The Commission has been issuing directives to ESCOMs for conducting Energy
Audit at the Distribution Transformer Centre (DTC)/feeder level for proper
The Government of Karnataka vide its letter dated 15.02.2019 has informed
the Commission that, for FY20, an amount of Rs.11250.00 Crores is available for
the subsidized supply to BJ/KJ and IP sets installations, and that there is no
change in the Policy of the Government in the matter of free supply to BJ/KJ
consumers (consuming up to 40 Units) and IP sets consumers with a
sanctioned load of 10 HP and below. It is further informed that this amount is
required to be considered in determination of retail supply tariff by the
Commission for FY20. It is also informed that the tariff subsidy beyond the
allocated subsidy amount in the budget is not available.
The Commission notes that, as per the provisions of the Electricity Act, 2003
and the Policy of the State Government to supply free power to BJ/KJ
installations (consuming up to 40 Units per month) and IP Sets installations
having sanctioned load of 10 HP and below, the Government has to fully
meet the cost of such subsidized supply. The Commission makes it clear that
any shortfall in subsidy cannot be passed on to the other consumers, who are
already paying tariffs with high level of cross subsidies and any increase on
such higher tariff of other consumers would correspondingly increase the
cross subsidy levels, which would be against the provisions of the Electricity
Act and the Tariff Policy, that emphasize gradual reduction in cross subsidy at
a level not exceeding plus or minus 20% of the cost of supply.
The ESCOMs including CESC shall manage supply of power to the IP sets for
the FY20, so as to ensure that it is within the quantum of subsidy committed by
the GoK. While doing so, they shall procure power proportionate to such
supply. In case the ESCOMs choose to supply power to the IP sets in excess of
the quantum proportionate to the amount of subsidy available from the GoK
for FY20, the difference in the amount of subsidy relating to such supply shall
be claimed from the GoK. If the difference in subsidy is not paid by the GoK,
the same shall be collected from the IP set consumers.
CESC’s Proposal
The Existing and proposed tariff for LT-4(b) are as follows:
LT-4 (c) (i) - Applicable to Private Horticultural Nurseries, Coffee, Tea &
Rubber plantations up to & inclusive of 10 HP
Details Existing as per 2018 Tariff Proposed by CESC
Order
Fixed charges per Month Rs.50 per HP Rs.60 per HP
Energy charges for the 325 paise per unit 416 paise per unit
entire consumption
LT-4 (c) (ii) - Applicable to Private Horticultural Nurseries, Coffee, Tea & Rubber
plantations above 10 HP
Approved Tariff:
CESC’s Proposal:
Fixed i) Rs. 45 per HP for 5 HP & below i) Rs. 55 per HP for 5 HP & below
charges per ii) Rs. 50 per HP for above 5 HP & ii) Rs. 60 per HP for above 5 HP &
Month below 40 HP below 40 HP
iii) Rs. 70 per HP for 40 HP & above iii) Rs. 80 per HP for 40 HP & above
but below 67 HP but below 67 HP
iv)Rs. 130 per HP for 67 HP & above iv)Rs. 140 per HP for 67 HP & above
i) Fixed charges
Details Existing as per 2018 Tariff Order Proposed by CESC
Fixed Charges i)Rs.40 per HP for 5 HP & below i) Rs.50 per HP for 5 HP &
per Month ii) Rs.45 per HP for above 5 HP & below
below 40 HP ii) Rs.55 per HP for above 5
iii) Rs.65 per HP for 40 HP & HP & below 40 HP
above but below 67 HP iii) Rs.75 per HP for 40 HP &
iv)Rs.120 per HP for 67 HP & above but below 67 HP
above iv)Rs.130 per HP for 67 HP &
above
Existing ToD Tariff for LT-5 (a) & (b): At the option of the consumers
ToD Tariff
Proposed ToD Tariff for LT-5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 hrs + 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 hrs + 100 paise per unit
22.00 Hrs to 06.00 Hrs (-) 100 paise per unit
Commission’s Decision:
Time of the Day Tariff:
The decision of the Commission in its earlier Tariff Orders, providing for
mandatory Time of Day Tariff for HT2(a), HT2(b) and HT2(c) consumers with a
contract demand of 500 KVA and above is continued. The optional ToD will
continue as existing for HT2(a), HT2(b) and HT2(c) consumers with contract
demand of less than 500 KVA. Further, for LT5 and HT1 consumers, the
optional ToD is continued as existing.
The Commission also decides to continue with two tier tariff structure
introduced in the previous Tariff Orders, which are as follows:
ii) LT5 (b): For areas other than those covered under LT5 (a) above.
Approved Tariff:
The Commission approves the tariff under LT 5 (a) and LT 5 (b) categories as
given shown in the following Table:
i) Fixed charges
As discussed earlier in this Chapter, the approved ToD Tariff for LT-5 (a) & (b): At the
option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 Hrs (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 hrs (+) 100 paise per unit
22.00 Hrs to 06.00 Hrs (-) 100 paise per unit
CESC’s Proposal:
The existing and the proposed tariffs are given below:
LT-6(a) : Water Supply
Details Existing as per 2018 Tariff Proposed by CESC
Order
Fixed charges per Rs.65/HP/month Rs.75/HP/month
Month
Energy charges 440 paise/unit 531 paise/unit
Commission’s decision:
The Commission approves the tariff for these categories as follows:
Tariff Approved by the Commission for LT-6 (a): Water supply
Details Approved Tariff
Fixed Charges per Month Rs.75 /HP/month
Energy charges 460 paise/unit
The existing rate and the proposed rate are given below:
Commission’s decision
As decided in the previous Tariff Order, the tariff specified for installations with
sanctioned load / contract demand above 67 HP shall continue to be
covered under the HT temporary tariff category under HT5.
With this, the Commission decides to approve the tariff for LT-7 category as
follows:
APPROVED TARIFF SCHEDULE LT-7(a)
H.T. Categories:
The Commission decides to continue with the mandatory Time of Day Tariff for
HT2 (a), HT-2(b) and HT2(c) consumers with a contract demand of 500 KVA
and above. Further, the optional ToD will continue as existing for HT2 (a), HT-
2(b) and HT2 (c) consumers with contract demand of less than 500 KVA. The
details of ToD tariff are indicated under the respective tariff category.
The increase in billing demand to 85% of the CD, is hereby continued for
billing of all the HT installations.
CESC’s Proposal:
The Existing and the proposed tariff – HT-1 Water Supply and Sewerage
Installations
Existing ToD tariff to HT-1 tariff to Water Supply & Sewerage installations at the
option of the consumer
Commission’s decision:
As discussed earlier in this chapter, the Commission approves the tariff for HT 1
Water Supply & Sewerage category as below:
As discussed earlier in this chapter, the approved ToD tariff to HT-1 to Water
Supply & Sewerage installations at the option of the consumer is as follows
CESC’s Proposal:
HT – 2 (a) HT Industries
Applicable to all areas of CESC
Details Existing tariff as per Tariff Proposed Tariff by CESC
Order 2018
Demand charges Rs.200 / kVA of billing Rs.220 / kVA of billing
demand / month demand / month
Energy charges
(i) For the first one 675 paise per unit 766 paise per unit
lakh units
(ii) For the balance
units 700 paise per unit 791 paise per unit
Commission’s Decision:
As discussed earlier in this chapter, the Commission approves the tariff for HT 2(a)
category as below:
Note: The ToD tariff is applicable to these installations, if the new Special
Incentive Scheme is not opted.
CESC’s Proposal:
The existing and proposed tariff are as given below:
Existing and proposed tariff HT – 2 (b) HT Commercial
Applicable to all areas of CESC
Details Existing tariff as per Tariff Proposed by CESC
Order 2018
Demand charges Rs.220 / kVA of billing Rs.240 / kVA of billing
demand / month demand / month
Energy charges
(i) For the first two 845 paise per unit 936 paise per unit
lakh units
(ii)For the balance units 855 paise per unit 946 paise per unit
Commission’s Decision:
It is brought to the notices of the Commission that, the various activities listed
under LT-3 (Commercial) tariff schedule are not specifically indicated under
HT-2(b) tariff schedule, if the power is availed by these listed activities under
HT supply. It is further noted that, as these listed activities are related to supply
of power under LT or HT to commercial use / services only and the non-
inclusion of these activities under HT-2(b) tariff schedule has led to wrong
application in the ESCOMs. Therefore, the Commission decides to include all
the activities listed under LT3 tariff schedule shall also be considered to be
billed under HT2(b) tariff schedule by including the additional nomenclature -
‘all the activities listed under LT3 tariff schedule and not included under HT2(b)
tariff schedule shall be classified and billed under HT-2(b), if they avail power
under HT supply.
Note: The above tariff under HT2 (b) is not applicable for construction of new
industries. Such power supply shall be availed only under the temporary
category HT5.
Commission’s Decision:
Applicable to Hospitals/Educational Institutions other than those covered under HT2(c) (i)
As discussed earlier in this Chapter approved ToD for Tariff to HT-2(c) (i) & (ii)
Commission’s Decision:
Corporations
13. HT-3 (b) Irrigation & Agricultural Farms, Government Horticulture farms, Private
Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut Plantations:
CESC’s Proposal:
Commission’s Decision
The Commission approves the tariff for this category as indicated below:
Approved Tariff
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms, Private
Horticulture Nurseries, Coffee, Tea, Rubber, Coconut & Arecanut Plantations:
CESC’s Proposal:
The existing and the proposed tariff for this category are given below:
Commission’s Decision
The Commission approves the tariff for this category as indicated below:
Approved tariff
HT-4 Residential Apartments/ Colonies Applicable to all areas
CESC’s Proposal:
Commission’s Views/Decisions:
(i) As approved in the Commission’s Tariff Order dated 6th May, 2013, this
Tariff is applicable to 67 HP and above hoardings, advertisement
boards and construction-power for industries excluding those
categories of consumers covered under HT2(b) Tariff schedule availing
power supply for construction power for irrigation and power projects
and is also applicable to power supply availed on temporary basis with
the contract demand of 67 HP and above of all categories.
Approved Tariff for HT – 5 – Temporary supply
67 HP and above: Approved Tariff
Fixed Charges / Rs.260 /HP/month for the entire sanction load /
Demand Charges contract demand
Energy Charges 1060 paise / unit
CESC in its replies has requested the Commission to continue the proposed
wheeling charges to RE sources also.
While the Commission has noted the replies furnished, the approach of
the Commission regarding wheeling & banking charges is discussed in the
following paragraphs:
TABLE – 6.2
Wheeling Charges
Distribution ARR-Rs. Crs 680.94
Sales-MU 6264.59
Wheeling charges- paise/unit 108.70
Paise/unit
HT-network 32.61
LT-network 76.09
Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow diagram furnished by
CESC.
The actual wheeling charges payable (after rounding off) will depend upon
the point of injection & point of drawal as under:
paise/unit
Injection point HT LT
Drawal point
HT 33(3.95%) 109(11.20%)
LT 109(11.20%) 76(7.25%)
Note: Figures in brackets are applicable loss
The wheeling charges as determined above are applicable to all the open
access / wheeling transactions for using the CESC network, except for energy
transmitted or wheeled from renewable sources to the consumers within the
State.
6.6.2 Wheeling of Energy using Transmission Network Or Network Of More than One
Licensee
6.6.3 In case the wheeling of energy [other than RE sources wheeling to consumers
within the State] involves usage of Transmission network or network of more
than one licensee, the charges shall be as indicated below:
Illustration 1:
If a transaction involves transmission network & CESC’s network and 100 units
is injected, then at the drawal point the consumer is entitled for 85.99 units,
after accounting for Transmission loss of 3.162% & CESC’s technical loss of
11.20%.
iii. If ESCOMs’ network only is used, the Wheeling Charges of the ESCOM
where the power is drawn is payable and shall be shared equally
among the ESCOMs whose networks are used.
Illustration 2:
The Wheeling charge of 109 paise per unit applicable to CESC shall be
equally shared between CESC & BESCOM.
As the actual normal network charges depend upon the point of injection
and point of drawal, the following broad guidelines may be followed by the
licensees, while working out the charges:
Injection point KPTCL Network BESCOM Network MESCOM CESC Network HESCOM GESCOM
Network Network Network
Drawal point
KPTCL Network Transmission charges & Transmission Transmission Transmission Transmission Transmission
Losses as per KPTCL’s charges & Losses charges & Losses charges & Losses charges & Losses charges & Losses
Order as per KPTCL’s as per KPTCL’s as per KPTCL’s as per KPTCL’s as per KPTCL’s
Order Order Order Order Order
BESCOM Network Transmission charges & BESCOM’s BESCOM’s BESCOM’s BESCOM’s BESCOM’s
Losses as per KPTCL’s network charges network charges network charges network charges network charges
Order and technical and technical and technical and technical and technical
losses as per losses as per losses as per losses as per losses as per
and BESCOM’s tariff illustration-2 of illustration-2 of illustration-2 of illustration-2 of
order under the BESCOM’s tariff BESCOM’s tariff BESCOM’s tariff BESCOM’s tariff
heading order order order order
BESCOM’s wheeling ‘wheeling within
charges & Technical BESCOM area’
losses as per which again
illustration-1 of depends on point
BESCOM’s Tariff Order of injection or
drawal
MESCOM Network Transmission charges & MESCOM’s MESCOM’s MESCOM’s MESCOM’s MESCOM’s
Losses as per KPTCL’s network charges network charges network charges network charges network charges
Order and technical and technical and technical and technical and technical
losses as per losses as per losses as per losses as per losses as per
and illustration-2 of MESCOM’s tariff illustration-2 of illustration-2 of illustration-2 of
MESCOM’s tariff order under the MESCOM’s tariff MESCOM’s tariff MESCOM’s tariff
order heading order order order
MESCOM’s wheeling ‘wheeling within
charges & Technical MESCOM area’
losses as per which again
illustration-1 of depends on
MESCOM’s Tariff Order point of injection
or drawal
CESC Network Transmission charges & CESC’s network CESC’s network CESC’s network CESC’s network CESC’s network
Losses as per KPTCL’s charges and charges and charges and charges and charges and
Order and CESC’s technical losses technical losses technical losses technical losses technical losses
wheeling charges & as per illustration- as per as per CESC’s
as per as per
Technical losses as per 2 of CESC’s tariff illustration-2 of tariff order under
illustration-1 of CESC’s order CESC’s tariff the heading illustration-2 of illustration-2 of
Tariff Order order ‘wheeling within CESC’s tariff CESC’s tariff
CESC area’ order order
which again
depends on
point of injection
Injection point KPTCL Network BESCOM Network MESCOM CESC Network HESCOM GESCOM
Network Network Network
Drawal point
or drawal
HESCOM Network Transmission charges & HESCOM’s HESCOM’s HESCOM’s HESCOM’s HESCOM’s
Losses as per KPTCL’s network charges network charges network charges network charges network charges
Order and technical and technical and technical and technical and technical
losses as per losses as per losses as per losses as per losses as per
and illustration-2 of illustration-2 of illustration-2 of HESCOM’s tariff illustration-2 of
HESCOM’s tariff HESCOM’s tariff HESCOM’s tariff order under the HESCOM’s tariff
order order order heading order
HESCOM’s wheeling ‘wheeling within
charges & Technical HESCOM area’
losses as per which again
illustration-1 of depends on
HESCOM’s Tariff Order point of injection
or drawal
GESCOM Network Transmission charges & GESCOM’s GESCOM’s GESCOM’s GESCOM’s GESCOM’s
Losses as per KPTCL’s network charges network charges network charges network charges network charges
Order and technical and technical and technical and technical and technical
losses as per losses as per
losses as per losses as per losses as per
and illustration-2 of GESCOM’s tariff
illustration-2 of illustration-2 of illustration-2 of
GESCOM’s tariff order under the
order GESCOM’s tariff GESCOM’s tariff GESCOM’s tariff heading
GESCOM’s wheeling order order order ‘wheeling within
charges & Technical GESCOM area’
losses as per which again
illustration-1 of depends on
GESCOM’s Tariff Order point of injection
or drawal
The separate orders issued by the Commission from time to time in the matter
of wheeling and banking charges for RE sources (Non-REC route) wheeling
energy to consumers within the State shall be applicable.
6.6.5 Charges for Wheeling Energy By RE Sources, Wheeling Energy from the State
to the Consumers/Others outside the State and for those opting for
Renewable Energy Certificate[REC]
CESC has submitted that it has worked out the CSS as per the formula
specified in the KERC (Terms and conditions for OA) (First Amendment)
Regulations,2006 and has proposed the following CSS:
Paise/unit
Voltage HT-2a HT-2b HT- 2c HT-4 HT-5
level
66kV & 71.03 160.71 202.57 181.28 132.15
above
HT-11kV - 160.71 202.57 181.28 46.73
&33 kV
Paise/unit
Voltage HT-1 HT-2a HT-2b HT- 2c HT-3b HT-4 HT-5
level
66kV & 71.03 160.71 202.57 181.28 132.15 138.38 316.49
above
HT-11kV - 160.71 202.57 181.28 46.73 77.91 316.49
&33 kV
The Commission has adopted the formula as per Tariff Policy, 2016, for
computing the CSS which is as indicated below:
S=T-[C/(1-L/100) + D + R]
Where
S is the Surcharge
C is the per unit weighted average cost of power purchase by the Licensee,
including meeting the Renewable Purchase Obligation
Paise/unit
State Average Cross
Cross
Category Cost of supply State Average subsidy
subsidy 20% of tariff
Tariff @ 66 kV and Cost of supply surcharge
surcharge payable by
Tariff paise/unit above level* at @ HT level** paise/unit @
paise/unit relevant
category ‘T’ (Avg. paise/unit paise/unit 66 kV &
@ HT level category-
of C/(1-/100)+D+ C/(1-/100)+D+ R] above level
as per paise/unit
ESCOMs) R] as per
formula
formula
1 2 3 4 5 6 7
(2-3) (2-4)
HT-1
581.51 504.59 550.31 76.92 31.20 116.30
Water Supply
HT-2a 550.31
858.19 504.59 353.61 307.88 171.64
Industries
HT-2b 550.31
1013.27 504.59 508.68 462.96 202.65
Commercial
550.31
HT-2 (C)(i) 821.47 504.59 316.89 271.16 164.29
550.31
HT-2 (C)(ii) 951.61 504.59 447.03 401.30 190.32
HT3 (a)(i) 550.31 -229.58 -275.30 55.00
275.01 504.59
Lift Irrigation
HT3 (a)(ii) 550.31 -140.16 -185.88 72.89
364.43 504.59
Lift Irrigation
HT3 (a)(iii) 550.31 -111.46 -157.18 78.63
Lift Irrigation 393.13 504.59
HT3 (b)
Irrigation &
Agricultural 550.31 -30.90 -76.63 94.74
Farms 473.68 504.59
HT-4
Residential 550.31
Apartments 733.86 504.59 229.28 183.55 146.77
HT5 550.31
Temporary 1300.79 504.59 796.20 750.48 260.16
*Includes weighted average power purchase costs of 431.15 paise/unit, transmission charges of
59.03Ps/unit and transmission losses of 3.23% including commercial losses at EHT.
** Includes weighted average power purchase costs of 431.15 Ps/unit, transmission charges of 59.03Ps/unit
and transmission losses of 3.23% including commercial losses at EHT, HT distribution network / wheeling
charges of 25.59 Ps/unit and HT distribution losses of 4.32% including commercial losses at HT.
Note: The carrying cost of regulatory asset for the current year is zero.
As per the Tariff Policy 2016, while limiting the CSS so as not to exceed 20% of
the tariff applicable to relevant category, the CSS (after rounding off to
nearest paise) is determined as under:
Paise/unit
66 kV & HT level-11
Particulars
above kV/33kV
HT-1
77 31
Water Supply
HT-2a
172 172
Industries
HT-2b
203 203
Commercial
HT-2 (C)(i) 164 164
HT-2 (C)(ii) 190 190
HT3 (a)(i)
0 0
Lift Irrigation
HT3 (a)(ii)
0 0
Lift Irrigation
HT3 (a)(iii)
0 0
Lift Irrigation
HT3 (b)
Irrigation & Agricultural 0 0
Farms
HT-4
Residential 147 147
Apartments
HT5
260 260
Temporary
Note: wherever CSS is negative, it is made zero
The cross subsidy surcharge determined in this order shall be applicable to all
open access/wheeling transactions in the area coming under CESC. However,
the above CSS shall not be applicable to captive generating plant for carrying
electricity to the destination of its own use and for those renewable energy
generators who have been exempted from CSS by the specific Orders of the
Commission.
The Commission directs the Licensees to account the transactions under open
access separately.
ESCOMs in their tariff application for the approval of ARR for the control period FY20-
22 and for revision of retail supply tariff for FY20, have submitted that they have tied
up sufficient quantum of power, after approval by this Commission, by considering
the overall growth in sales. However, a large number of its high revenue yielding
consumers are buying power under Open Access (OA) instead of availing power
from the ESCOMs. As a result, a part of generation capacity tied up by them remains
idle. Consequently, ESCOMs need to back down the generation and also pay Fixed
Charges (Capacity Charges) to the generators for the capacity contracted,
irrespective of the actual energy drawn by it. Thus, there is a need for recovery of
part of the fixed cost from the OA consumers towards the idle capacity (stranded
capacity) arising out of the power purchase obligation, through levy of additional
surcharge.
In view of above, ESCOMs in their tariff application have proposed levy of additional
surcharge for FY20 as given below:
Additional Surcharge
ESCOM proposed-Rs. Per unit
BESCOM 1.13
MESCOM 1.27
CESC 0.49
HESCOM -
GESCOM 1.00
The Commission observed that the ESCOMs had proposed the levy of additional
surcharge based on the proposed ARR for FY20. Hence, they were directed to
submit the rates of additional surcharge based on the actual figures as per audited
accounts for FY18. In compliance to the observation, ESCOM have proposed the
rates of additional surcharge based on the audited accounts for FY18 as follows:
Revised Additional
ESCOM Surcharge proposed
Rs. Per unit
BESCOM 0.55
MESCOM 4.88
CESC 1.02
HESCOM 1.88
GESCOM 1.17
Considering the above submissions, the Commission has examined the admissibility
of the additional surcharge keeping in view the following aspects:
The Commission has examined the claim of ESCOMs to levy additional Surcharge on
the OA consumers in the light of the statutory provisions of the Electricity Act, 2003,
provisions of KERC (Terms and Conditions for Open Access) Regulations, 2004, the
principles laid down in the National Tariff Policy and the rulings by the Hon’ble
Supreme Court of India and the Hon’ble Appellate Tribunal for Electricity(ATE), in the
matter as indicated below:
b. Regulation 11(vii) of the KERC (Terms and Conditions for Open Access)
Regulations, 2004:
e. Ruling of the Hon’ble Supreme Court dated 25.04.2014 in Civil Appeal 5479 of
2013 (8 SCC 444), SESA Sterlite Vs CERC & Others:
“27. The issue of open access surcharge is very crucial and implementation of
the provision of open access depends on judicious determination of
surcharge by the State Commissions. There are two aspects to the concept of
surcharge-one, the cross-subsidy surcharge i.e. the surcharge meant to take
care of the requirements of current levels of cross-subsidy, and the other, the
additional surcharge to meet the fixed cost of the distribution licensee arising
out of his obligation to supply. The presumption, normally is that generally the
bulk consumers would avail of open access, who also pay at relatively higher
rates. As such, their exit would necessarily have adverse effect on the
finances of the existing licensee, primarily on two counts-one, on its ability to
cross subsidise the vulnerable sections of society and the other, in terms of
recovery of the fixed cost such licensee might have incurred as part of his
obligation to supply electricity to that consumer on demand (stranded costs).
The mechanism of surcharge is meant to compensate the licensee for both
these aspects”.
f. Ruling of the Hon’ble APTEL in the order dated 29.04.2016 in Appeal No. 269 of
2014 and 204 of 2014, filed by the Open Access Users Association and others
upholding the levy of the Additional Surcharge, duly accepting the findings of
the HERC reproduced as follows:
“The Commission observes that the distribution licenses, based on the data
provided by them for the period April 2013 to March 2014, have been able to
conclusively prove, backed with calculations, that their long term power
purchase commitments do get stranded most of the times when power is
drawn by embedded open access consumers from other sources and the
Discoms have to bear the fixed cost of such stranded power which ultimately
get passed on to other consumers. They have worked out the cost of such
stranded power and based on that has worked out the additional surcharge
as 97 paise/unit for FY 2013-14. The Commission further observes that it would
not be fair if the cost incurred by distribution licensees for the power purchase
commitments stranded on account of power drawn by open access
consumers from other sources is passed on to other consumers as that would
amount to cross subsidising of the open access consumers by other
consumers. It would also be fair to assume that, as the number of open
access consumers and power drawn through open access is increasing every
year, the additional surcharge worked on similar basis for FY 2014-15 would not
work out less than as has been worked out by UHBVNL for FY 2013-14.”
As discussed in the subsequent paras, the Commission notes that though the current
retail supply tariff consists of Demand Charges (Fixed Cost-FC) and Energy Charges,
the component of FC does not enable recovery of entire fixed charge obligations of
the Distribution Licensees and a substantial portion of the fixed charge is being
recovered through energy charges. Hence, whenever an existing consumer avails
Open Access (OA), to the extent of energy drawn from the OA sources, there is
under recovery of the Fixed Charges and thus there is an unavoidable obligation on
the part of supply companies to bear the stranded fixed cost, which has to be
recovered from the other consumers.
whenever the consumers are allowed open access, the fixed cost of power
purchase of the existing PPAs get stranded to the extent of consumption through
open access and thus, there is unavoidable obligation on the part of the Distribution
Companies to bear fixed costs. In case the additional surcharge is not levied, the
same has to be passed on to the other consumers of the licensee, which would not
be fair.
Thus, as per the above provisions/ rulings, the additional surcharge can be levied on
the open access consumers, to meet the stranded fixed cost obligations of the
distribution licensee arising out of its obligation to supply power.
Some of the ESCOMs have proposed levy of additional surcharge on open access
consumers, captive generation OA consumers and OA consumers using solar power,
in view of the fact that the open access transactions are significantly increasing year
after year. After examining the issue in detail, the Commission notes that the
additional surcharge is leviable under Section 42 (4) of the Electricity Act, 2003 for
meeting the fixed cost obligation of the distribution licensee arising out of its
obligation to supply to the consumers when they avail open access. Hence, the
Commission decides to levy additional surcharge on consumers availing power
under Open Access, except for the consumption of energy from their captive
generators for the own consumption.
The Commission notes that as per the information submitted by the SLDC and
ESCOMs, the total energy drawn by the OA consumers during FY18 was 5546.88 MU
consisting of energy purchase from Indian Electricity Exchange (IEX) and energy
drawn through wheeling using transmission/distribution network. Thus, the
Commission is of the considered view that to the extent of energy drawn under OA,
the fixed cost per unit is not recovered by the ESCOMs and gets stranded.
The Commission has examined and considered the data as per audited accounts of
ESCOMs for FY18, and the additional surcharge has been computed with reference
to the approved APR for FY18.
Further, while deriving the stranded fixed cost, the Commission has ensured that the
fixed cost arrived at for the stranded capacity, to the extent of energy consumed, is
attributable to the open access consumers and the distribution licensee which has
the universal service obligation.
The Commission notes that, when a consumer purchases electricity under Open
Access, the ESCOMs lose the Fixed Charges embedded in the energy charges for
the number of units of energy purchased under Open Access.
The Commission has determined the Additional Surcharge for the ESCOMs by
allocating the total fixed cost of Power Purchase to EHT and HT consumers in
proportion to their input energy. The Commission, while computing the Additional
Surcharge, has excluded the KPTCL transmission charges & SLDC charges and the
distribution network cost, as these charges are being recovered from the Open
Access consumers for the use of transmission and distribution network. Further, the
Commission has also considered the fixed cost associated with the retail supply
business allocated to EHT and HT consumers in proportion to their energy sales.
Based on the above, the total Fixed cost excluding KPTCL Transmission charges,
SLDC charges and Distribution network charges, is considered for computation of
Additional Surcharge for EHT and HT consumers.
Further, out of the fixed charges recovered from EHT and HT consumers in retail
supply tariff, the fixed costs allocated to EHT and HT consumers towards transmission
and distribution network cost, is deducted on first charge basis. The balance of the
fixed charges recovered through retail supply tariff is set off against the total
stranded fixed cost attributable to HT/EHT consumers and the remaining stranded
fixed cost has to be recovered from OA consumers by levy of additional surcharge.
Based on the above methodology, the additional surcharge recoverable from the
consumers of ESCOMs is worked out as follows:
Computed Additional
ESCOM
Surcharge Rs. Per unit
BESCOM 0.91
MESCOM 1.85
CESC 1.24
HESCOM 1.65
GESCOM 1.59
The Commission notes that, as per the additional surcharge computed as above,
there is a wide variation in the rates of additional surcharge to be recovered from
the OA consumers among the ESCOMs. Since, the retail supply tariff and the cross
subsidy surcharge applicable to the consumers of the State is uniform across the
State, the Commission decides to adopt a uniform Additional Surcharge across the
State which is worked out, by considering the total fixed cost of all the ESCOMs as
follows:
Computation of Additional Surcharge for FY20
110kV &
Particulars Unit 11 kV LT Total
66 kV
1 Power Purchase Cost of the
State Rs.in Cr. - - - 30515.77
2 Distribution of Power Purchase
Cost (Based on share of
voltage-wise energy Input) Rs.in Cr. 1403.21 5901.49 23211.06 30515.77
3 Energy Input Share in
percentage % 4.598 19.339 76.063 100
4 Total Fixed Charges Power
Purchase cost (Excluding KPTCL
Transmission charges+ SLDC) Rs.in Cr. - - - 7011.30
5 Distribution of Fixed Charges in
Power Purchase cost -Voltage-
wise (Based on share of energy
Input Rs.in Cr. 327.60 1394.04 5289.66 7011.30
6 KPTCL Transmission Charges+
SLDC (Based on share of energy
input) Rs.in Cr. 132.60 534.47 2126.51 2793.58
7 Fixed cost in Retail Supply
Business (Based on share of
energy sales) Rs.in Cr. 135.18 467.70 1804.78 2407.66
8 Distribution network costs
(Based on share of energy sales)
Rs.in Cr. 237.43 713.93 2995.17 3946.53
9 Total Fixed cost (column number
5+6+7) Rs.in Cr. - - - 16159.07
10 Fixed cost recoverable in
wheeling and banking charges
(transmission charges + SLDC +
Distribution network costs)
(column number 6+8) Rs.in Cr. 370.04 1248.41 5121.66 6740.11
11 Balance of Fixed Cost to be
recovered through additional
surcharge (column number 5+7) Rs.in Cr. 462.78 1861.75 7094.43 9418.96
12 Total Fixed Cost recoverable
from HT/EHT consumers
(excluding Transmission and Rs.in Cr.
Distribution Network cost) 462.78 1861.75 - 2324.53
13 Fixed charges recovered by
ESCOMs through tariff from Rs.in Cr.
HT/EHT consumers 2353.36 - - -
14 Less: Fixed Charges allocated to
transmission and distribution Rs.in Cr.
network cost 1618.44 - - -
15 Balance available fixed charges
(column number 13-14) from HT Rs.in Cr.
consumers 734.92 - - 734.92
16 Shortfall in recovery of Fixed
Cost to be considered for
recovery of additional
surcharge (column number 14- Rs.in Cr.
15) - - - 1589.61
17 Total HT/EHT Sales of ESCOMs In MU - - - 13591.70
18 Additional Surcharge (column Rs./unit 1.17
number 16/17)
The above Additional Surcharge shall be payable by the HT/EHT open access
consumers to the concerned distribution licensee on a monthly basis, based on the
actual energy drawn during the month, through Open Access.
In order to encourage generation and use of green power in the State, the
Commission decides to continue the existing Green Tariff of 50 paise per unit as
the additional tariff over and above the normal tariff to be paid by HT-
consumers, who opt for supply of green power from out of the renewable
energy procured by distribution utilities over and above their Renewable
Purchase Obligation (RPO).
The Commission in its previous order had retained the PF threshold limit and
surcharge, both for LT and HT installations at the levels prescribed in the
Tariff Order 2005. The Commission decides to continue the same in the
present order as indicated below:
LT Category (covered under LT-3, LT-4, LT-5 & LT-6 where motive power is
involved): 0.85
HT Category: 0.90
In its Tariff Order 2005, the Commission had approved rounding off of
fractions of KW / HP to the nearest quarter KW / HP for the purpose of
billing and the minimum billing being 1 KW / 1HP in respect of all the
categories of LT installations including IP sets. This shall continue to be
followed. In the case of street light installations, fractions of KW shall be
rounded off to the nearest quarter KW for the purpose of billing and the
minimum billing shall be for a quarter KW.
The Commission as decided in the Tariff Order 2018 dated 14th May, 2018,
in order to encourage the consumers to opt for digital payments in line
with the direction of the MOP, GoI, decides to continue to allow CESC to
collect payment of monthly power supply bill through Electronic clearing
system (ECS)/ Debit / Credit cards / RTGS/ NEFT/ Net Banking through
ESCOMs / Bank/ Karnataka One websites, on-line E-Payment / Digital
mode of payments in line with the guidelines issued and the payment up
to the limit prescribed by the RBI wherever such facility is provided by the
Licensee and allow CESC to incur and claim the expenditure on such
transaction in the ARR. However, the Commission decides to allow CESC
to incur the expenditure on the payment for power supply bills received
through Debit / Credit Cards having demand up to Rs.2000/- and below
only.
The Hon’ble Appellate Tribunal for Electricity (ATE), in its Order dated 8th
October, 2014, in Appeal No.42 of 2014, has directed the Commission to
clearly indicate the variation of anticipated category-wise average revenue
realization with respect to overall average cost of supply in order to
implement the requirement of the Tariff Policy that tariffs are within ±20% of
the average cost of supply, in the tariff orders being passed in the future. It
has further directed the Commission to also indicate category-wise cross
As per the KERC (Tariff) Regulations 2000, read with the MYT Regulations 2006,
the ESCOMs have to file their applications for ERC/Tariff before 120 days of
the close of each financial year in the control period. The Commission
observes that the ESCOMs including CESC have filed their applications for
revision of tariff on 30th November, 2018. Hence, the revised tariff is effective
from 1st April, 2019 onwards.
o The Commission has approved for CESC an ARR of Rs.4342.44 Crores for
FY20, which includes the deficit for FY18 of Rs.207.62 Crores with a net gap
in revenue of Rs.206.73 Crores as against CESC’s proposed ARR of
Rs.4828.79 Crores.
o The Commission has allowed recovery of the entire gap in revenue with
additional revenue of Rs.206.73 Crores on Tariff Revision as against the
additional revenue of Rs.630.75 Crores proposed by CESC for FY20.
o Time of the day tariff which was made mandatory in the previous Tariff
Orders for installations under HT2 (a), HT2 (b) and HT2(c) with contract
demand of 500KVA and above with the inclusion of morning peak period
from 06.00 Hrs to 10.00 Hrs is continued in this Order except Railway
Traction Installation.
o The Commission in order to boost the energy sales and to attract the
consumers to consume power from ESCOMs including CESC has decided
to continue the existing Special Incentive Scheme to HT category during
FY20.
o The Commission has allowed the concessional tariff of Rs.6.20 per unit to
the Railway Traction installation.
o Green tariff of additional 50 paise per unit over and above the normal
tariff, which was introduced a few years ago for HT industries and HT
commercial consumers at their option, to promote purchase of
renewable energy from ESCOMs, is continued in this Order.