Section 4-Tariff proposals and approved tariff

18. Tariff proposals As discussed in the foregoing paragraphs, even after taking the effect of improved Transmission & Distribution Losses, allowing of interest and other expenses on normative basis and accounting for the subsidy expected from the State Government, an uncovered gap of Rs. 910 crore, Rs. 1168 crore and Rs. 1903 crores would remain for JVVNL, AVVNL & JdVVNL respectively at existing tariff. This amounts to a deficit of Rs. 3981 crores for all Discoms put together. 18.1. Discoms have proposed revision of tariff which would lead to an additional revenue of Rs. 2702 crore for Discoms during 2013-14, as follows:
Table:60-Expected additional revenue as proposed by Discoms for FY 2013-14 (Rs. Crore) Particulars JVVNL AVVNL JdVVNL Total Expected additional revenue 893 692 1117 2702

18.2. A large gap still remains as difference in average Cost of Supply and average realization is quite high. Therefore, a revision of tariff to cover the revenue deficit seems not only justified but is inescapable. 19. Determination of tariff

19.1. While finalizing the tariff for different consumer categories, the Commission has given due consideration to the proposals of licensees, comments of stakeholders, decisions thereon and the position of cross subsidy. The Regulations of the Commission as well as National Tariff Policy visualize cross subsidy to be in + 20% range of average cost of supply and this has also been kept in view. 19.2. This tariff revision is the third consecutive annual tariff revision after the National Tariff policy came into force in 2006. The past accumulated revenue deficit due to gap in annual revenue revision can be wiped out only in a progressive manner and that too with the support of the State Government. 19.3. Commission has also kept in view the fact that the tariff increase allowed last year was quite high and successive high tariff increases would result in tariff 91

shock. However, the average realization from agriculture sector, still being too low in comparison to average cost of supply, a significant increase is inescapable for this category. The licensees have also proposed significant increase in this category. 19.4. Discoms have stated that they will be receiving subsidy from State Govt. for certain categories. The tariff has been determined for each category without subsidy but the subsidy indicated by Discoms has also been mentioned. The subsidy to be provided by the Govt. would result in amount payable by consumer of such category getting reduced by the subsidy amount. 19.5. Discoms have not proposed any change in tariff for Public Street Lighting, Small Industries, Medium Industries, Large Industries and Bulk Supply for Mixed Load. No changes have been proposed in Domestic and Non-Domestic category consumers having consumption upto 500 units per month. Considering that the tariff increase in past two years when seen together have resulted in an average increase of around 40% over tariff of F.Y 2010-11, the Commission accepts the said proposal of the licensees. 19.6. Licensees have proposed considerable increase in tariff of Agriculture category in both metered and Flat Rate category. It may be mentioned that despite the tariff increase in this category in past two years, the impact of cross subsidy continues to be very high for agriculture sector. The National Tariff Policy stipulates for the cross subsidy to come within the range of +/- 20% of average CoS. The Commission therefore considers the proposed tariff increase in agriculture category worth consideration. 19.7. Considering that the Discoms have proposed changes in tariff in respect of only a few categories, the discussion in the following paras is limited to only those categories where changes have been proposed. For other categories, where no change is envisaged by the licensees, the Commission has accepted that existing tariff for such categories shall become approved tariff for F.Y 13-14. 20. Category wise Tariff

20.1. Domestic Service (LT-1 and HT-1) 20.1.1. No increase in energy and fixed charges have been proposed for BPL, small domestic and general domestic consumers having consumption upto 500 units per month.

92

20.1.2. Introduction of new slab under general domestic category has been proposed by Discoms for consumers having consumption above 500 units per month, the fixed charges for this slab have been proposed at Rs. 225/connection/month. Energy charges for consumption upto 500 units per month shall remain same as approved in last year order. However for consumption above 500 units per month the energy charges have been proposed to be revised from existing Rs.5.15/unit to Rs. 6.00/unit. 20.1.3. No change has been proposed in tariff schedule DS/HT-1. 20.1.4. A large no. of stakeholders in their written as well as oral submissions opposed the proposed tariff hike stating that last two tariff increase was quite steep and third tariff revision in a span of less than two year will put undue burden. The Commission while determining the tariff has suitably considered the views of the stakeholders. 20.1.5. Discoms have proposed increase in number of slabs with increase in tariff for the slab of higher consumption as a dis-incentive for high energy consumption. Considering the above, the Commission agrees for introduction of new slab for consumers having consumption more than 500 units per month. 20.1.6. However, the Commission has noted that for consumption above 500 units per month, the Discoms have proposed an increase of 85 paisa/unit, which is an increase of approximately 17% over existing tariff of Rs. 5.15/unit. Looking to the fact that no revision has been proposed for other slabs of domestic category, 17% increase in single slab appears to be on higher side. Further, in the present telescopic tariff the slabs are closely knit and the Commission feels that there should not be a major tariff difference between two slabs. Accordingly, for FY 2013-14, the Commission has considered the energy charges of Rs. 5.45/unit for consumer having consumption above 500 units per month. 20.1.7. For consumers having consumption above 500 units per month, the fixed charges have been proposed to be increased from existing Rs. 210/connection/month to Rs. 225/connection/month. The Commission accepts the same. 20.1.8. The Existing, proposed tariff and that approved by the Commission is given in the following tables:

93

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

Particulars Category EXISTING TARIFF Energy Charges Fixed Charges Su!sidy indicate d to !e recei"ed #ro GoR E##ecti" e EC a#ter su!sidy Particulars Category PROPOSED TARIFF Energy Charges Fixed Charges Su!sidy indicate d to !e recei"ed #ro GoR E##ecti" e EC a#ter su!sidy

Do estic

EC

Do estic

EC

$T%Do estic & $T%'( ) P $*

$T%Do estic & $T%'( ) P $*

Consu +tion u+to #irst ,units +er onth

Rs. /.0, 1 unit

Rs '.2-1 unit

Rs -.3,1 unit

Rs 3-1 connection1 ont h &e##ecti"e FC Rs ,1connection 1 onth a#ter su!sidy o# Rs. 4-1connection1 onth(

Consu +tion u+to #irst ,units +er onth

Rs. /.0, 1 unit

Rs '.2-1 unit

Rs -.3,1 unit

Rs 3-1 connection1 ont h &e##ecti"e FC Rs ,1connection 1 onth a#ter su!sidy o# Rs. 4-1connection1 onth(

S all Do estic &Consu +tion u+ to ,- units1 onth(5 Consu +tion u+ to ,-units1 ont h Rs 4.-1 unit Rs '.4-1 unit Rs 3-1 connection 1 onth

S all Do estic &Consu +tion u+ to ,- units1 onth( Consu +tion u+ to ,-units1 ont h Rs 4.-1 unit Rs '.4-1 unit Rs 3-1 connection 1 onth

Rs '.0-1 unit

Rs '.0-1 unit

General Do estic%' &Consu +tion a!o"e ,- units1 onth( &i( For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit Rs '6-1 connection 1 onth

General Do estic%' &Consu +tion a!o"e ,- units1 onth( &i( For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit Rs '6-1 connection 1 onth

&ii( For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs 7.6, 1 unit

Rs '6-1 connection 1 onth

&ii( For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs 7.6, 1 unit

Rs '6-1 connection 1 onth

General Do estic%/ &Consu +tion a!o"e ',- units and u+ to 4--units1 onth ( &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

General Do estic%/ & Consu +tion a!o"e ',- units and u+ to 4--units1 onth ( &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

Rs '0,1 connection1 onth

Rs '0,1 connection1 onth

&ii(For consu +tion a!o"e ,- units

Rs 7.6, 1

&ii(For consu +tion a!o"e ,- units

Rs 7.6, 1

94

and u+to ',- units +er onth &iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth

unit

and u+to ',- units +er onth &iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth

unit

Rs 7.3, 1 unit

Rs 7.3, 1 unit

General Do estic%4 &Consu +tion a!o"e 4-- units and u+ to ,-units1 onth ( &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

General Do estic%4 &Consu +tion a!o"e 4-- units and u+ to ,-units1 onth ( &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

&ii(For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs 7.6, 1 unit Rs /'-1 connection 1 onth Rs 7.3, 1 unit

&ii(For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs 7.6, 1 unit Rs /'-1 connection 1 onth Rs 7.3, 1 unit

&iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth &i"(For consu +tion a!o"e 4-units and u+to ,-- units +er onth

&iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth &i"(For consu +tion a!o"e 4-units and u+to ,-- units +er onth

Rs ,.', 1 unit

Rs ,.', 1 unit

General Do estic%7 &Consu +tion a!o"e ,-- units1 onth ( &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

General Do estic%7 &Consu +tion a!o"e ,-- units1 onth ( 8 Pro+osed &i(For consu +tion u+to #irst ,units +er onth Rs 4.-1 unit

&ii(For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs /'-1 connection 1 onth

Rs 7.6, 1 unit

&ii(For consu +tion a!o"e ,- units and u+to ',- units +er onth

Rs //,1 connection 1 onth

Rs 7.6, 1 unit

95

&iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth

Rs 7.3, 1 unit

&iii(For consu +tion a!o"e ',units and u+to 4-- units +er onth

Rs 7.3, 1 unit

&i"(For consu +tion a!o"e 4-units +er onth

Rs ,.', 1 unit

&i"(For consu +tion a!o"e 4-units and u+to ,-- units +er onth

Rs ,.', 1 unit

&"(For consu +tion a!o"e ,-units +er onth 9T 8 Do estic &9T%'( For contract de and o"er ,- :;A Rs 7.2, 1 unit Rs. '7- +er <;A o# )illing De and +er onth For contract de and o"er ,- :;A

Rs 6.-1 unit 9T 8 Do estic &9T%'( Rs 7.2, 1 unit Rs. '7- +er <;A o# )illing De and +er onth

*applicable for BPL card holders only # No subsidy will be allowed for consumption above 50 units during the respective month on entire consumed units.
Table: 62-Domestic Category (LT-1 and HT-1) -Approved tariff for FY 2013-14
Domestic Category Domestic EC Subsidy indicated to Effective EC be received from after subsidy GoR LT-Domestic ( LT-1) B P L* Rs 1.90/ unit Rs 0.85/ unit Fixed Charges

Consumption upto first 50 units per month

Rs. 2.75/ unit

Rs 80/ connection/ month (effective FC Rs 50 /connection /month after subsidy of Rs. 30/connection/month)

Small Domestic (Consumption up to 50 units/month)# Consumption up to 50 units/month Rs 3.00/ unit Rs 1.30/ unit Rs 1.70/ unit Rs 80/ connection / month

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

96

General Domestic (Consumption above 50 units/month)

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

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

Fixed Charges

(i) For consumption upto first 50 units per month (ii)For consumption above 50 units and upto 150 units per month

Rs 3.00/ unit Rs 4.65/ unit

Rs 175/ connection / month

(iii)For consumption above 150 units and upto 300 units per month

Rs 4.85/ unit

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

General Domestic-4 (Consumption above 500 units/month) Energy Charges (i) For consumption upto first 50 units per month (ii)For consumption above 50 units and upto 150 units per month (iii) For consumption above 150 units and upto 300 units per month (iv)For consumption above 300 units and upto 500 units per month (v)For consumption above 500 units per month Rs 3.00/ unit Rs 4.65/ unit Rs 4.85/ unit Rs 5.15/ unit Rs 5.45/ unit Rs 225/ connection / month Fixed Charges

Note: As discussed in section 1 of this order, moksh dhams, cemeteries and grave yards shall be covered Domestic category. HT Domestic (HT-1) Energy Charges For contract demand over 50 kVA Rs. 4.95/ unit Fixed Charges Rs. 140 per kVA of Billing Demand per month

97

20.1.9. The Discoms in their petitions have proposed to delete the words also upto 5 KW as appearing in the present applicability of domestic HT schedule (DS/HT1) reproduced as under: Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Also upto 5 kW pumping load for water supply and load of maximum five shops shall be permitted under this tariff schedule. 20.1.10. Discoms stated that current provision restricts the consumers to use the pumping load not more than 5 KW whereas in the current scenario, where large group housing colonies are applying connection under this category, the actual requirement for pumping load may be higher than 5 KW. 20.1.11. The Commission has accepted the above proposal to mitigate the difficulty in respect of load for water pumping in residential colonies. Accordingly, after deletion of the above words, the applicability shall read as follows: Available to residential colonies belonging to any type of establishments for bonafide domestic uses i.e. lights, fans radios, televisions, heaters, cookers, refrigerators, pumps, grinders and other domestic appliances. Pumping load for water supply and load of maximum five shops shall also be permitted under this tariff schedule. Re-Categorization of moksh dhams, cemeteries and grave yards 20.1.12. As discussed in section 2 of this order the moksh dhams, cemeteries and grave yards are re-categorized from Non Domestic category to Domestic category. Accordingly, the Commission directs the Discoms to make necessary changes in booklet Tariff for Supply of Electricity 20.2. Non-Domestic Service (LT-2 & HT-2) : 20.2.1. The Discoms in respect of consumers upto & above 5 kW of sanctioned connected load and having consumption upto 500 units per month have not proposed any increase in energy and fixed charges respectively. 20.2.2. Introduction of new slab has been proposed by Discoms for consumers upto and above 5 kW of sanctioned connected load & having consumption above 500 units per month. 20.2.3. The fixed charges for consumers upto 5 KW of sanctioned connected load and having consumption above 500 units per month have been proposed at 98

Rs. 250/connection/month. The fixed charges for consumers above 5 KW of sanctioned connected load and having consumption above 500 units per month have been proposed at Rs.80/ KW of SCL / month. 20.2.4. Energy charges for consumption upto 500 units per month are proposed to remain same as approved in last years tariff order. However for consumption above 500 units per month the energy charges have been proposed to be revised from existing Rs.6.25/unit to Rs. 7.00/unit. 20.2.5. No change has been proposed in tariff schedule NDS/HT-2. 20.2.6. Many stakeholders stated that the proposed tariff for NDS is beyond the limit of +20% of average cost of supply as stipulated in National Tariff policy and Regulations. The Commission while determining the tariff has kept in view the average cost of supply and realization from this category. 20.2.7. Discoms have proposed to increase the number of slabs with increase in tariff for the slab of higher consumption as a dis-incentive for high energy consumption. This would promote energy conservation. Considering the said position, the Commission agrees for introduction of a new slab for consumers having consumption of more than 500 units per month. 20.2.8. However, the Commission has noted that for consumers having consumption above 500 units per month, the Discoms have proposed an increase of 75 paisa/unit, which is an increase of approximately 12% over existing tariff of Rs. 6.25/unit. The tariff of this category is already near the range of +-20% of average cost of supply. Accordingly, for FY 2013-14, the Commission has considered a lower energy charges of Rs. 6.60/unit for consumer having consumption above 500 units per month as appropriate and the same stands approved. The fixed charges for this slab has been approved as proposed i.e. Rs 250/connection/month for NDS upto 5 KW and Rs 80/KW of SCL / month for NDS above 5 KW. 20.2.9. The proposed tariff and that approved by the Commission is being given in the following tables:
Table: 63-Non-Domestic Category (LT-2 and HT-2) - Existing and Proposed tariff for FY 2013-14
EXISTING TARIFF Energy Charges NDS up to 5 KW of SCL Consumption upto first 100 units per month Rs.5.60/unit Rs 175/ connection/ Consumption upto first 100 units per month PROPOSED TARIFF Energy Charges NDS up to 5 KW of SCL Rs.5.60/unit Rs 175/ connection/ month

Non-Domestic

Fixed Charges

Non-Domestic

Fixed Charges

LT-NDS(LT-2)

99

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

Consumption upto first 100 units per month

Rs.5.60/unit Rs 175/connection / month Rs.6.00/unit

Consumption upto first 100 units per month Consumption above 100 units and upto 200 Unit per month

Rs.5.60/unit Rs 175/connection / month

Consumption above 100 units and upto 200 Unit per month

Rs.6.00/unit

NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month) Consumption upto first 100 units per month

NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month and upto 500 units/month) Consumption upto first 100 units per month

Rs.5.60/unit Rs 210/ connection / month Rs.6.00/unit

Rs.5.60/unit Rs 210/ connection / month Rs.6.00/unit

Consumption above 100 units and upto 200 Unit per month

Consumption above 100 units and upto 200 Unit per month Consumption above 200 units/month and upto 500 units/month

Consumption above 200 unit per month

Rs.6.25/unit

Rs.6.25/unit

NDS up to 5 kW of SCL-type 3 (Consumption above 200 units/month) Consumption upto first 100 units per month

NDS up to 5 kW of SCL-type 4 (Consumption above 500 units/month) Consumption upto first 100 units per month Consumption above 100 units and upto 200 Unit per month Consumption above 200 unit per month and upto 500 units per month

Rs.5.60/unit

Rs.5.60/unit

Consumption above 100 units and upto 200 Unit per month

Rs.6.00/unit Rs 210/ connection / month Rs.6.25/unit

Rs.6.00/unit Rs 250/ connection / month Rs.6.25/unit

Consumption above 200 unit per month

Consumption above 500 units per month NDS above 5 KW of SCL

Rs.7.00/unit

NDS above 5 KW of SCL

100

Consumption upto first 100 units per month

Rs.5.60/unit

Consumption upto first 100 units per month Consumption above 100 units and upto 200 Unit per month Consumption above 200 unit per month and upto 500 units per month

Rs.5.60/unit

Consumption above 100 units and upto 200 Unit per month

Rs.6.00/unit

Rs.70/ KW of SCL / month

Rs.6.00/unit

Rs.70/ KW of SCL / month

Consumption above 200 unit per month

Rs.6.25/unit

Rs.6.25/unit

Consumption above 500 units per month HT-NDS (HT-2) For contract demand over 50 KVA Rs.140/ kVA of Billing Demand per month

Rs.7.00/unit

Rs.80/ KW of SCL / month

HT-NDS (HT-2) For contract demand over 50 KVA Rs.140/ kVA of Billing Demand per month

All Units

Rs.6.25/unit

All Units

Rs.6.25/unit

101

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

NDS up to 5 KW of Sanctioned Connected Load

LT-NDS(LT-2) Type1 (Consumption upto 100 units/month) Energy Charges Consumption upto first 100 units per month Rs.5.60/unit Fixed Charges Rs 175/ connection / month

LT-NDS(LT-2) Type 2 Consumption above 100 units/month and upto 200 units/month) Energy Charges Consumption upto first 100 units per month Consumption above 100 units and upto 200 unit per month Rs.5.60/unit Rs 175/ connection / month Rs.6.00/unit Fixed Charges

LT-NDS(LT-2) Type 3 (Consumption above 200 units and upto 500 units/month) Energy Charges Consumption upto first 100 units per month Consumption above 100 units and upto 200 unit per month Consumption above 200 unit upto 500 unit per month Rs.5.60/unit Rs.6.00/unit Rs.6.25/unit Rs 210/ connection / month Fixed Charges

LT-NDS(LT-2) Type 4 (Consumption above 500 units/month) Energy Charges Consumption upto first 100 units per month Consumption above 100 units and upto 200 unit per month Consumption above 200 units and upto 500 units per month Consumption above 500 unit per month Rs.5.60/unit Rs.6.00/unit Rs 250/ connection / month Rs.6.25/unit Rs.6.60/unit Fixed Charges

102

NDS above 5 KW of Sanctioned Connected Load

NDS above 5 KW of SCL (LT-2) Energy Charges Consumption upto first 100 units per month Consumption above 100 units and upto 200 unit per month Consumption above 200 unit upto 500 units per month Consumption above 500 units per month HT-NDS (HT-2) For contract demand over 50 kVA All units Rs.6.25/unit Rs.140/ kVA of Billing Demand per month Rs.5.60/unit Rs.6.00/unit Rs.6.25/unit Rs.6.60/unit Rs. 80/ KW of SCL / month Rs.70/ KW of SCL / month Fixed Charges

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

20.3. Agriculture Supply (LT-4) 20.3.1. Discoms in their petitions have stated that the Agriculture tariff approved by the Commission is far less than the average cost of supply. Therefore the Discoms have proposed the increase in energy charges to gradually bring the tariff for agriculture consumers towards average cost of supply. 20.3.2. Discoms have proposed to increase the energy charges of both the metered and un-metered agricultural consumers which has been summarized in the table after the following paras. 20.3.3. For metered consumers the Discoms have proposed to increase the energy charges from Rs. 2.25/unit to Rs. 3.93/unit for general consumers getting supply in block hours and from Rs. 3.85/unit to Rs. 4.95/unit for consumers getting supply more than block hours. 20.3.4. For flat rate consumers the Discoms have proposed to increase energy charges from Rs. 285/ HP/month to Rs. 470/ HP /month for general consumers

103

getting supply in block hours and from Rs. 430/ HP/month to 600/ HP/month for consumers getting supply more than block hours. 20.3.5. No changes have been proposed in fixed charges of Agriculture metered and flat rate category and the Commission has accepted the same. 20.3.6. As per submission of Discoms the Government of Rajasthan would be providing subsidy support for both metered and un-metered agriculture consumers. Discoms have submitted that the subsidy would be increased from the existing Rs. 1.35/unit to Rs. 3.03/unit for general metered consumers getting supply in block hours whereas for the consumers getting supply more than block hours, the subsidy would increase from Rs. 1.75/unit to Rs. 2.85/unit. In case of general Flat Rate consumers getting supply in block hours, the Govt. subsidy would be increased from existing Rs. 200/HP/month to Rs. 385/HP/month, whereas for other flat rate consumers getting supply more than block hours, the subsidy is proposed to be increased from Rs. 200/HP/month to Rs. 370/HP/month. 20.3.7. The existing and the proposed tariff for agriculture supply are summarized below:
Table: 65-Agriculture Category (LT-4) Existing and Proposed tariff for FY 2013-14
Particulars Su!sidy indicated to !e recei"ed #ro GoR EXISTING TARIFF E##ecti"e EC a#ter su!sidy PROPOSED TARIFF Su!sidy E##ecti" indicated to e !e recei"ed EC #ro a#ter GoR su!sidy =etered &AG1=S1$T%7(

EC

Fixed Charges

EC

Fixed Charges

=etered &AG1=S1$T%7(

&i( General &getting su++ly in !loc< hours(

Rs. /./,1un it

Rs. '.4,1unit

Rs. -.2-1unit

Rs.',1 9P1 onth =axi u Rs /,-1 onth1consu er&Su!sidy a!o"e Rs 7,1Connection 1 =onth (

&i( General &getting su++ly in !loc< hours(

Rs. 4.241u nit

Rs. 4.-41unit

Rs. -.2-1u nit

Rs.',1 9P1 onth =axi u Rs /,-1 onth1cons u er&Su!sidy a!o"e Rs 7,1Connection 1 =onth (

&ii(All others notco"ered under ite s &i( and getting su++ly

Rs. 4.3,1 unit

Rs. '.0,1 unit

Rs. /.'-1unit

Rs.4-1 9P1 onth =axi u Rs,--1 onth1 consu er&Su!sidy a!o"e Rs,-1Connection 1 =onth

&ii(All others notco"ere d under ite s &i( and

Rs. 7.2,1 unit

Rs. /.3,1 unit

Rs. /.'-1u nit

Rs.4-1 9P1 onth =axi u Rs,--1 onth1 consu er&Su!sid y a!o"e

104

Particulars ore than !loc< hours

EXISTING TARIFF getting su++ly ore than !loc< hours Flat1 un etered &AG1FR1$T%7(

PROPOSED TARIFF Rs,-1Connection 1 =onth

Flat1 un etered &AG1FR1$T%7(

i(General &getting su++ly in !loc< hours(

Rs./3,1 9P1 =onth

Rs./--1 9P1 =onth

3, 1 9P1 =onth

Rs.',1 9P1 onth =axi u Rs /,-1 onth1 consu er&Su!sidy a!o"e Rs ',1Connection 1 =onth (

i(General &getting su++ly in !loc< hours(

Rs.70-1 9P1 =onth

Rs.43,1 9P1 =onth

3, 1 9P1 =onth

Rs.',1 9P1 onth =axi u Rs /,-1 onth1 consu er&Su !sidy a!o"e Rs ',1Connectio n 1 =onth (

&ii(All others not co"ered under ite s &i(a!o"e and getting ore than !loc< hour su++ly

Rs 74-1 9P1 =onth

Rs /--1 9P1 =onth

Rs /4-1 9P1 =onth

Rs.4-1 9P 1 onth =axi u Rs ,--1 onth1 consu er&Su!sidy a!o"e Rs /-1Connectio n 1 =onth (

&ii(All others not co"ered under ite s &i(a!o"e and getting ore than !loc< hour su++ly

Rs 6--1 9P1 =onth

Rs 40-1 9P1 =onth

Rs /4-1 9P1 =onth

Rs.4-1 9P 1 onth =axi u Rs ,--1 onth1 consu er&Su !sidy a!o"e Rs /-1Connectio n 1 =onth (

Tariff for agriculture consumers 20.3.8. There were lot of suggestions from stakeholders against lower tariff for this category and their contention was that the provisions of Electricity Act, Tariff Policy and Tariff Regulations should be given due consideration as far as crosssubsidy is concerned. 20.3.9. As mentioned earlier, the tariff of this category has to progressively increase in a manner so as to bring down the cross subsidy as required under the National Tariff Policy as well as in Regulations of the Commission. In last two tariff orders, the tariff for this category has increased considerably to take it towards average cost of supply and to reduce the cross subsidy. A significant increase in tariff of this category is again inescapable and licensees have also proposed considerable increase in energy charges for consumers of this category along with corresponding increase in Government subsidy. 20.3.10. Stakeholders suggested that the tariff of flat rate agriculture consumers should be higher than the tariff of agriculture metered consumers, which would 105

incentivise them to shift to metered category. The Commission has noted that Discoms have on the contrary proposed a lower average increase (in percentage terms) in the tariff of flat rate consumers (getting supply in block hours) than average increase for metered category (getting supply in block hours). The lower increase in flat rate tariff would result in higher crosssubsidy for flat rate consumers, which also goes contrary to principle of incentivizing consumers to shift to metered category. Considering the said position, the tariff increase for flat rate consumers (getting supply in block hours) is being approved at a level higher than proposed by Discoms. 20.3.11. Accordingly, the tariff determined by the Commission for this category is as under:
Table: 66-Agriculture Category (LT-4)-Approved Tariff for FY 2013-14
Agriculture Supply Metered (AG/MS/LT-4) (i) General (getting supply in block hours) (ii)All others not covered under items (i) and getting supply more than block hours EC Energy Charges (EC) Subsidy indicated to be received from Govt Effective EC after subsidy Fixed Charges

Rs. 3.93 /unit

Rs. 3.03 /unit

Rs. 0.90 /unit

Rs.15/ HP/ Month of SCL Maximum Rs 250/ month/consumer(Subsidy above Rs 45/Connection / Month ) Rs.30/ HP/ month of SCL Maximum Rs. 500/ month/consumer(Subsidy above Rs 50/Connection / Month )

Rs. 4.95 /unit

Rs 2.85 /unit

Rs 2.10 /unit

Flat/ unmetered (AG/FR/LT-4) (i)General (getting Rs. 500 / supply in block HP/ Month hours) (ii)All others not covered under items (i) above and getting more than block hour supply Rs.15/ HP/ month of SCL Maximum Rs 250/ month/consumer(Subsidy above Rs 15/Connection / Month ) Rs.30/ HP/ month of SCL Maximum Rs 500/ month/consumer(Subsidy above Rs 20/Connection / Month )

Rs. 385 HP/ Month

115 HP/ Month

Rs 600 HP/ Month

Rs 370 HP/ Month

Rs. 230 HP/ Month

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

106

20.3.12. Discoms in their petitions proposed that for Agriculture flat rate consumers, fixed charges be recovered on the basis of sanctioned connected load or actual connected load, whichever is higher, stating that same is mentioned for energy charges and not for fixed charges. 20.3.13. After the issue of last tariff order dt. 8.8.12 it came to the notice of the Commission that the Discoms while issuing tariff booklet inserted a similar provision in that and the Commission vide its order dt. 21.11.12 clarified that fixed charges for flat rate consumers would be charged on the basis of sanctioned connected load only. In view of the said clarification the proposal of the Discoms is not being considered by the Commission. 20.4. Other Proposals Tariff for Jaipur Metro Rail Corporation 20.4.1. JVVNL in its petition has proposed that in the prevailing tariff schedule, there is no separate category for charging tariff for the Metro Rail services in Jaipur. Currently, Railways is being charged under Large Industrial Category (HT-5) and Metro Rail has the similar consumption pattern as would be of Railways and shall also draw energy at the same voltage level. Therefore, JVVNL has proposed to keep the metro in the electric traction category and re-term the Electric Traction category as Electric Traction and Metro. The Commission accepts the categorization of Metro and accordingly the term Railway Traction Load appearing under applicability of Large Industrial Service shall be read as Metro and Railway Traction Load. 20.4.2. However, the Commission feels that the services of two operators are different as Railways carries both passengers as well as goods across the nation, whereas Metro is a Rapid Transit system in Jaipur. Though voltage level for both the consumers is same but their purpose is different. This view of the Commission is also supported by APTEL decision dt. 13.3.2007 in the matter of Northern Railway (NR) V/S Delhi Electricity Regulatory Commission (DERC) wherein the APTEL has also permitted preferential treatment to Delhi Metro Rail Corporation (DMRC).In other states like Haryana, Delhi and Uttar Pradesh the tariff for Metro Rail has been kept lower than the tariff for Railways. 20.4.3. The Commission noted that note (iv) appearing below schedule LP/HT-5 in booklet Tariff for Supply of Electricity reads as under: Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after 17.12.2004. This rebate will be available for a 107

period of five years from the date of electrification after which normal traction tariff shall be charged. Looking to above facts, the Commission finds it appropriate to also allow a rebate of 10% on energy charges of LP/HT-5 for Metro Rail services in Rajasthan for a period of five years from the date of electrification after which normal tariff shall be charged. Accordingly, the note (iv) shall be amended as under: Rebate of 5% will be given on energy charges on energy consumed on new railway sections electrified after 17.12.2004. This rebate will be available for a period of five years from the date of electrification after which normal traction tariff shall be charged. Similarly a rebate of 10% will be given on energy charges on energy consumed by Metro Rail services in Rajasthan for a period of 5 Years from the date of electrification after which normal traction tariff shall be charged.

20.4.4.

Metro Rail will be categorized under Large Industrial Category (HT-5) and all other provision applicable to Large Industrial category shall be applicable to Metro Rail. It is also clarified that Non traction load of Metro shall be billed under respective categories as applicable to that load.

20.4.5.

Change in the Definition of Maximum Demand 20.4.6. Discoms proposed to modify the existing definition of Maximum Demand as appearing in booklet Tariff for Supply of Electricity as under: Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive period of 30/15 minutes of maximum use during the month. 20.4.7. Stakeholders have referred to the section 62 (3) of Electricity Act 2003 and objected that Discoms cannot opt for both 15 minutes and 30 minutes time period for the same type of consumer. Discoms should be specific in their proposal i.e. either they choose 15 minutes or 30 minutes. 20.4.8. In reply to objectors queries, Discoms mentioned that the proposal for change in the definition of maximum demand is based on the available metering equipment wherever available and not for all industries. ABT meters has the features of recording 15 minutes block wise maximum demand and thus the same is logical and accordingly they have requested the Commission to add the recording period of 15 minutes along with 30 minutes. 108

20.4.9. In reply to data gaps, the Discoms informed that maximum demand for 15 minutes block are there where ABT meters are installed and the same is applicable for open access consumer, whereas for other consumers block of 30 minute has been proposed. Commissions view: 20.4.10. As per regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004, the definition of Maximum demand is as follows: Maximum Demand shall mean the average kVA delivered at the point of supply of a consumer during any consecutive period of 30 or 15 minutes of maximum use during the month, as may be specified by the licensee, with the approval of Commission. 20.4.11. Whereas, the existing definition given in the tariff booklet reads as under: Maximum Demand or Demand means the average KVA delivered to the point of supply of the consumer during any consecutive period of 30 minutes of maximum use during the month. 20.4.12. As per RERC (Terms & Conditions for Open Access)(3rd Amendment) Regulations, 2004, the Commission specified the Open Access agreement for case of distribution system & for HT supply of which clause 9 of scheduling and clause 29 (2) of billing are as follows: 9. Scheduling: (ii)The day ahead schedule injection/ drawal shall be furnished each day, not later then 10.00 AM, to State Load Despatch Center, Heerapura, for each 15 minute block starting from 00.00 hrs. for the ensuing day; (iii)Further, if it involves open access to inter state transmission system, open access customer shall cause his supplier to furnish day ahead schedule on 15 minute block basis at prescribed time to the Northern Regional Load Dispatch Center in accordance with the prescribed procedure with a copy to SLDC. 29. Billing (2)The Billing shall be made as per finalized energy accounts issued by SLDC, based on various para-meters at 15 minutes interval, starting from 0.00 hours of the day, stored in ABT complaint meters and as specified by the Commission. 109

20.4.13. It may be mentioned that energy accounting & scheduling for Open Access consumers is for each 15 minutes time block as distinct from other consumers. In view of this, reckoning of maximum demand based on 15 minutes time block for open access consumers as clarified by the petitioners in their reply to data gap seems a reasonable proposition and is worth consideration. Considering that Commission as per regulation 2 (7) of RERC (Supply Code and Connected Matters) Regulations, 2004 is empowered to specify the time period for the purpose of maximum demand, the Commission accepts the proposal of the Discoms. Accordingly, Commission directs the Discoms to make required changes in booklet Tariff for Supply of Electricity. Voltage Rebate on Energy Charges 20.4.14. Discoms requested to revise the applicability of voltage rebate for all categories of consumers. They stated that presently voltage rebate is on the basis of amount which includes fixed and energy charges. However looking to the huge expenses already incurred in respect of the development of infrastructure for providing supply to the consumer on higher voltages allowing voltage rebate on fixed charges is not appropriate. Accordingly they proposed that voltage rebate should be allowed only on the energy charges or units billed. 20.4.15. In view of the comments of the stakeholders as discussed in section 2 of this order, the Commission is not inclined to accept the said proposal of the Discoms in this regard. Demand based Billing 20.4.16. Regarding demand based billing, some of the stakeholders have suggested that the demand based billing should be considered for all category of consumers. In response to that Discoms have stated that demand based billing for all consumers having sanctioned load above 18.65 KW can be made applicable as the meters capable of reading demand are installed for such consumers. 20.4.17. The Commission in its last tariff order dt. 8.8.12 while giving option for demand based billing for LT Medium Industrial consumers also noted that it also wishes 110

to extend this facility in phased manner based on examination of metering status and feasibility in respect of LT consumer of other categories. 20.4.18. Though no proposal regarding demand based billing was received from Discoms, the Commission feels that it should move towards goal of demand based billing for all categories of consumers. However, due to metering constraints it may not be possible for the Commission to allow demand based billing to LT consumers with sanctioned connected load of upto 18.65 kW. 20.4.19. Accordingly the Commission directs that LT consumers of Non Domestic category (NDS/LT-2) and Bulk supply for Mixed load category (ML/LT-7) having sanctioned connected load more than 18.65 KW (25HP) may opt for billing on the basis of demand and in that case fixed charges as applicable for NDS/HT2 & ML/HT-4 category shall apply respectively and other provisions relating to billing demand and excess demand surcharge etc. as applicable for NDS/HT2 & ML/HT-4 consumers shall also apply. However, if the demand exceeds 50 KVA the consumer has to shift to HT voltage as per provision of Tariff and Supply Code Regulations. 20.4.20. The Commission also wishes to extend this facility in phased manner based on examination of metering status and feasibility in respect of other consumer categories. 20.4.21. With shifting of consumers to demand based billing there also appears to be a need to rationalize methodology for checking connected load of the consumers, so as to avoid any undue harassment of LT consumers. The Discoms may review the existing provisions relating to this and if required furnish a separate proposal for amendment in Supply Code Regulations. 18. Approved tariff for FY 2013-14

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

19.1.1. Discoms are expected to generate additional revenue as given in the table below for a 12 month period due to revision of tariff allowed by the Commission by this order. This does not account for implication of any 111

incentive/surcharge or rebates, whose implication may be same as existing. Revenue has been calculated by the Commission at the tariff determined by it. If the State Govt. provides subsidy for any category of consumers in advance in the manner as specified in RERC (Terms & Conditions of Tariff) Regulations, 2009, the Discoms may apply the subsidised rate to that category. 19.1.2. Discom wise revenue at existing and revised tariff as approved by the Commission are as follows:
Table: 67- : Jaipur Discom- Revenue at Existing & Revised Tariff as Approved by the Commission for FY 2013-14 (Rs. crore) Consumer Categories Domestic Non-Domestic Public Street Light Agriculture (Metered) Agriculture (Flat) Small Industry Medium Industry Large Industry Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total Other Income Grand Total Revenue at Existing Tariff 2,087 1,262 81 1,103 163 161 423 2,427 97 16 122 108 303 8,354 76 8430 Revenue at Revised Tariff 2,088 1,271 81 1,823 279 161 423 2,427 97 15 122 108 303 9,200 76 9,276 Increase Allowed 2 8 720 116 846 846

Table: 68- : Ajmer Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY 2013-14 (Rs. crore) Consumer Categories Domestic Non-Domestic Public Street Light Agriculture (Metered) Agriculture (Flat) Small Industry Medium Industry Revenue at Existing Tariff 1,553 587 34 726 319 158 408 Revenue at Revised Tariff 1,554 590 34 1,202 547 158 408 Increase Allowed 1 3 476 228 -

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Large Industry Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total Other Income Grand Total

1,614 108 19 97 69 5,692 40 5732

1,614 108 19 97 69 6,399 40 6,439

707 707

Table: 69-: Jodhpur Discom- Revenue at Existing & Revised Tariff as approved by the Commission for FY 2013-14 (Rs. crore) Consumer Categories Domestic Non-Domestic Public Street Light Agriculture (Metered) Agriculture (Flat) Small Industry Medium Industry Large Industry Public Water Works (S) Public Water Works (M) Public Water Works (L) Mixed Load Electric Traction Total Other Income Grand Total Revenue at Existing Tariff 1,464 590 79 1,315 312 130 335 657 116 65 213 204 5,481 39 5520 Revenue at Revised Tariff 1,465 592 79 2,211 537 130 335 657 116 65 213 204 6,604 39 6,643 Increase Allowed 1 2 896 225 1,123 1,123

20.

Cross Subsidy

20.1. As per regulation 126 of RERC (Terms and Conditions of tariff) Regulations, 2009, the average cost of supply and realization from a category of consumers, shall form the basis of estimating the extent of cross subsidy and determination of tariff, for that consumer category. 20.2. Regulation 126 of RERC (Terms & Condition of Tariff) Regulations, read with National Tariff Policy makes it evident that average cost of supply has to be the benchmark in assessing cross-subsidy from any consumer category. The 113

National Tariff Policy at Para 8.3.2 states that SERC shall notify a road map with a target that tariff is within + 20% of average cost of supply. The Commission has also specified in its Tariff Regulations that the Commission shall endeavour to determine the tariff in such a manner that it progressively reflects the average cost of supply and the extent of cross subsidy to any consumer category is within maximum range of + 20% of average cost of supply by the year 2010-11. 20.3. The last tariff revision in the year 2012 was virtually the second revision after National Tariff Policy and considering the historical status of huge variation in category wise tariff, bringing the cross subsidy within the + 20% range in just two revisions was not feasible. The phasing out of subsidy has to be done through successive tariff revisions. 20.4. Average cost of supply for the three Discoms as per ARR and sales considered by the Commission, earlier in this order is as under:
Table: 70 - Average Cost of Supply JVVNL Net ARR (Rs. In crore) Sales (MU) COS (Rs./Unit) AVVNL JdVVNL Rajasthan

10,003 17,173 5.83

7,382 11,995 6.15

7,861 13,150 5.98

25,247 42,318 5.97

20.5. The cross subsidy across consumer categories at the revised tariff rate for the three Discoms for FY 2013-14 based on average cost of supply is provided in the table below:
Table: 71 - Cross subsidy at revised tariff Cross subsidy Domestic Non-Domestic Public Street Light Agriculture (Metered) Agriculture (Flat) Small Industry Medium Industry Large Industry Public Water Works (S) Public Water Works (M) JVVNL -7.18% 21.50% -4.37% -28.89% -27.86% -0.82% 3.59% 0.50% 2.24% -17.75% AVVNL -9.88% 15.45% -8.13% -32.46% -31.20% -4.61% -4.93% -0.03% -4.33% -20.60% JdVVNL -6.97% 16.14% -11.53% -31.55% -29.53% -3.04% -0.67% 13.92% -4.81% -19.10% Rajasthan -7.70% 18.48% -8.15% -30.70% -29.10% -2.28% -0.16% 2.08% -2.56% -18.68%

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Public Water Works (L) Mixed Load Electric Traction

-0.30% -5.30% -4.44%

-7.07% -1.53%

-5.63% -3.22%

-4.53% -3.13%

21.

Revenue Surplus/ Deficit at revised Tariff

21.1. Although the additional revenue on account of tariff revision works out to Rs. 2676 crore for all Discoms on an yearly basis, but since tariff revision approved by the Commission would be effective for a lesser period, the additional revenue on account of tariff revision would not be available for the full year and works out to be approximately Rs. 705 crore for JVVNL, Rs. 589 crore for AVVNL, Rs. 936 crore for JdVVNL and Rs. 2230 crore for all Discoms. The position of deficit at revised tariff for the full year and remaining period of FY 13-14 works out to be as under:
Table: 72-: Revenue Deficit as approved by the Commission for FY 2013-14 -JVVNL (Rs. Crore)

Particular

At existing Tariff

At revised Tariff for full year 10,003 9,276 727 494 164 5 64

At revised Tariff for remaining part of the year 10,003 9,135 868 494 164 5 205

Aggregate Revenue Requirement Revenue generation (including other income) Revenue Deficit ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit

10,003 8,430 1,573 494 164 5 910

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

Particular

At existing Tariff 7,382 5,732 1,651

At revised Tariff for full year 7,382 6,439 943

At revised Tariff for remaining part of the year 7,382 6,321 1,061

Aggregate Revenue Requirement Revenue generation (including other income) Revenue Deficit

115

ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit

356 122 5 1,168

356 122 5 461

356 122 5 579

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

Particular

At existing Tariff

At revised Tariff for full year 7,861 6,643 1,218 300 134 4 779

At revised Tariff for remaining part of the year 7,861 6,456 1,405 300 134 4 967

Aggregate Revenue Requirement Revenue generation (including other income) Revenue Deficit ED retention Transitional Cash Support from GoR Differential Interest subvention on WB loan Net Revenue Deficit

7,861 5,520 2,341 300 134 4 1,903

21.2. Discoms have not envisaged meeting the entire deficit for FY 2013-14 in the proposed tariff and have proposed that unfunded gap will be met through short term borrowings. 21.3. The revenue gap in past upto FY 2010-11 had increased substantially over the years primarily on account of long gap in tariff revision from the tariff order in December, 2004 to the next revision vide order dated 8.9.2011 for FY 2011-12. The Long gap about 6.5 years in tariff revision resulted in accumulated losses becoming too high. To avoid tariff shock to consumers, such gap would have to be wiped out through successive tariff adjustments over a period of time. In view of this, the revenue gap, even after this tariff order, would exist, though the same has come down quite significantly after the three successive tariff increases, including the current one. The revenue gap as approved as per this order could be met through borrowings.

116

21.4. Further, vigorous efforts would need to be made in areas like restricting short term power purchase, improving inventory management, recovery of arrears and addressing manpower related issues to improve quality of service. Overall T&D losses, though have come down over the years, but this would need to be sustained to reach the targeted loss level. 21.5. This tariff order shall remain in force till 31st March 2014 or till the next tariff order of the Commission. All existing provisions which are not modified by this order, shall continue to be in force. Discoms shall publish salient features of tariff within one week in two daily newspapers in Hindi and one in English, having large circulation in their respective areas of supply. This tariff order shall come into force only after such publication. Discoms shall revise the existing tariff structure in accordance with this order and publish in Hindi and English a booklet containing all details of tariff and its applicability for the benefit of consumers. It should be made available for sale to general public on a nominal price.

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

(S.Dhawan) Member

(S.K.Mittal) Member

(D.C. Samant) Chairman

117