Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
BANGALORE ELECTRICITY SUPPLY COMPANY
LIMITED
BESCOM Replies to the Preliminary Observations on
ARR for F14 – FY16 & Tariff filing for FY14
1
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
INDEX
Sl.No.
Particulars
Page No
1
Replies to Preliminary Observations on ARR for FY-14-FY-16
1 -18
2
3
4
5
6
7
8
Annexure-1
A-3 Cash flow statement
Annexure-2
Half yearly accounts of FY-13
Annexure-3
D-19 Energy flow Diagram
Annexure-4
D-6 Employees Cost
Annexure-5
D-21 Revenue from Existing Tariff
Annexure-6
D-1 Source wise power purchase cost for FY-12
Annexure-7
D-9– Loans Interest and Finance Charges.
19
20-46
47-51
52
53-61
62
63
2
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
Replies to Preliminary Observation of the Commission
1. General Observations on ERC /Tariff filing applications
(i)
A-3 statementis enclosed. (Annexure-1)
(ii)Audited Accounts for FY12 (Annual Report) was submitted to the
Commission Vide letter No BC26/2411/2009-10/702/dtd.29/12/2012.
Half yearly accounts ending on 30.09.2012 is here with enclosed.(Annexure-II)
(iii)Formats
D19,for
the
period
from
FY12
to
FY-16
are
enclosed.(Annexure-III)
FormatD6(a): Employees cost is projected based on the existing staff level for
the base year ie., FY-13. It is submitted before the Commission vide page No.
159 that BESCOM need new work force to be added to ensure quality of
supply and to cope up with increase in consumer base in BESCOM.
This
would result in increase in employees cost.Itis presumed that the retirement
staff will be filled through promotions and bottom level staff will be filled
through recruitment or outsourcing.
It is to be stated that the Commission
has prescribed a formula based the consumer growth and indexation for
estimation of O&M Cost. Accordingly, the O&M cost is projectedIn the format
D-6 submitted to the Commission. Further, submitted that the details of salary
and other allowances were erased by mistake due to wrong cell reference in
the excel sheet. The inadvertent error is regretted. CorrectedD-6 statement is
enclosed.(Annexure-IV)
Format D-21:Revised D-21 statement is enclosed (Annexure-V)
2.
Annual Performance Review for FY12:
a. Power Purchase:
Power Purchase:D-1 statement, source wise power purchase duly indicating
the fixed and variable charges for FY-12 is enclosed.(Annexure-VI)
3
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
Energy Balancing
For FY 11:
Energy balancing for FY 11 has been reconciled and accounted in the books of
Accounts. The details of energy and cost payable by BESCOM to other ESCOMs are
as follows
Company
GESCOM
MESCOM
CESC
Total
Energy
(MU)
Cost (Rs. In
Crs.)
438.78
409.69
36.10
884.57
121.76
118.60
10.33
250.69
However, SLDC has further modified the figures for FY 11 on 14.8.2012 which is yet to
be accounted. The details are as below.
Company
GESCOM
MESCOM
CESC
Total
Energy
(MU)
Cost
(Rs.
In Crs.)
482.45
437.21
44.91
964.57
121.62
126.31
12.98
260.91
For FY 12:
As regarding FY 12, the energy and cost has been reconciled and accounted. The
details of energy and cost receivable by BESCOM are as follows
Company
GESCOM
HESCOM
CESC
Total
Energy
(MU)
Cost
(Rs.
In Crs.)
160.24
889.99
191.99
1242.22
54.76
298.54
78.31
431.61
Further, the share of allocation for short term is considered by BESCOM as per KERC
Tariff Order 2012 dated 28.8.2011. However this share has not been considered by
SLDC or other ESCOMs despite clear instructions from the Hon’ble KERC in this
regard.
SLDC has revised the energy balancing for FY 12 on 6.9.2012 without considering the
share for short term power as approved by Hon’ble KERC. This is yet to be reconciled
and accounted. The details are as below.
4
Bangalore Electricity Supply Company Limited
Company
Replies to Preliminary Observations ARR for FY14 – FY16
Energy
(MU)
Cost
(Rs.
In Crs.)
GESCOM
HESCOM
80
1079
26.84
361.94
CESC
Total
70
1229
23.48
412.26
BESCOM has to receive the following amounts on account of energy balancing
from FY 06 to FY 12 and share difference for short term power.
Energy Balancing
Energy in MUs
YEAR
2005-06
Amount in Crores
2006-07
2007-08
2008-09
2009-10
Amount receivable from ESCOMs
ENERGY
AMOUNT
ENERGY
AMOUNT
ENERGY
AMOUNT
ENERGY
MESCOM
AMOUNT
ENERGY
AMOUNT
6.30
1.69
9.10
2.36
GESCOM
17.37
2.99
-204.24
-71.66
-245.8
-144.75
HESCOM
-70.63
-7.97
-356.81
-125.19
-195.1
-114.91
27.04
6.38
135.12
31.89
CESC
-32.69
-4.88
-163.5
-42.46
-28.5
-16.79
37.15
8.92
176.23
42.82
TOTAL
-85.95
-9.86
-724.55
-239.31
-469.4
-276.45
70.48
16.99
320.45
77.07
Energy in MUs
YEAR
2010-11
Amount in Crores
2011-12
TOTAL
Amount receivable from ESCOMs
ENERGY
AMOUNT
MESCOM
409.69
118.60
GESCOM
438.78
121.76
ENERGY
HESCOM
CESC
TOTAL
TOTAL
ENERGY
AMOUNT
TOTAL
AMOUNT
425.09
122.65
160.24
-54.76
166.35
-146.42
889.99
-298.54
429.61
-508.34
36.10
10.33
191.99
-78.31
216.78
-80.37
884.57
250.69
1242.2
-431.61
1237.83
-612.48
II SHORT TERM
YEAR
Energy in MUs
2007-08
ENERGY
2008-09
AMOUNT
ENERGY
2009-10
AMOUNT
ENERGY
2010-11
AMOUNT
ENERGY
Amount in Crores
2011-12
AMOUNT
ENERGY
TOTAL
AMOUNT
ENERGY
AMOUNT
MESCOM
-3.07
-0.58
3.65
-1.02
0
-1.02
GESCOM
-5.37
-1.01
6.11
-1.62
0
-1.89
HESCOM
-7.16
-1.35
4.86
-2.23
-571.27
-241.89
-571.27
-247.77
CESC
-3.41
-0.64
0.46
-1.29
-76.07
-32.21
-76.07
-37.09
-6.16
-647.34
-274.1
-647.34
-287.77
TOTAL
0
-19.01
0
-3.58
0
15.08
0
Note: ‘-‘ indicates receivables
5
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
Repeated requests are being made to other ESCOMs to pay the amounts due to
BESCOM but in vain. Similarly government is also requested to adjust the above
amounts out of the subsidy payable to other ESCOMS.
b) O & M expenses: Zone wise details of actual additional employee cost
incurred on account of pay revision is furnished as under:
Rs. In Crs
Sl.No.
Zone
1
2
3
Bangalore Metropolitan
Area Zone
Bangalore Rural Area Zone
Chitradurga Zone
Total
Basic Pay
75.1157
Dearness
Allowance
73.3157
HRA
75.4207
40.11
8.87
11.76
60.74
33.27
8.28
10.75
52.3
15.01
1.25
1.47
17.73
CCA/ot
hers
75.4157
0.001
0.003
0.031
Total
88.39
18.43
23.99
130.81
c) Interest on Loan: D-9 statement was prepared based on the Provisional
Accounts for FY-12 available at that point of time. Short term borrowing was
understated and the over draft was overstated. The error is regretted. Revised
D-9 statement as per final accounts of FY-12 is enclosed –Annexure(VII)
Itis submitted that the Commission may kindly consider the figures as per Final
accounts of FY-12.
d) Interest on working capital: Revised D-9 statement is enclosed.
3. Annual Revenue Requirement for FY14 – FY16:
a) Sales estimates for FY14:
i)
No comments
ii)
The compounded annual growth rate (CAGR) measures the annual
change in consumption. The compounded annual growth rate assumes
the initial figure (consumption, numbers) grows at the same rate every
year. The compounded annual growth rate also assumes each annual
increment compounds during the period measured. The compounded
6
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
annual growth rate thus smoothens the rate of growth. Indeed, a major
drawback of the compounded annual growth rate is that it says nothing
about volatility.
Due to this drawback BESCOM has considered an empirical formula
Average = (Optimistic+Pessimistic+4X Most Likely)
6
This formula is applied to one year, 2 years, 3 years, 4 years, 5 years, 6
years and 7 years block period.
It is to be stated thatBESCOM had submitted to the Commission the
empirical formula during the filing for the 2nd control period i.e., FY-11
toFY-13. No comments were received from the Commission. It is a
stasticaltool and it is submitted that projections have been made
based on the various time block periods, which will factor the weighted
average growth over the said periods.
In the light of this, it is
presumed that the methodology adopted would represent a fair
growth of sale forecast in the prevailing situation. Hence, It is requested
that the Commission may consider the methodology adopted by the
BESCOM. .
iii)
Sales for FY-13
Month wise actual energy sales up to Aug-12 were considered.
For the remaining months of FY 13, the energy sales were estimated
based on the monthly growth rate for FY-12 over FY-11. Hence it is
requested that the projected sales of 23142 MU for FY-13 may please be
considered.
7
Bangalore Electricity Supply Company Limited
iv)
Replies to Preliminary Observations ARR for FY14 – FY16
Table depicting sales for FY-11, FY-12 and FY-13 are shown below:
Month
FY11
FY12
Metered
[other
than
BJ/KJ &
IP
BJ/KJ &
IP
Total
Apr
1189.81
332.81
May
1158.87
Jun
1194.73
Jul
FY13*
Metered
[other
than
BJ/KJ &
IP
BJ/KJ &
IP
Total
Metered
[other
than
BJ/KJ &
IP
BJ/KJ &
IP
Total
1522.62
1318.74
478.72
1797.46
1437.03
499.44
1936.47
322.77
1481.63
1291.23
219.44
1414.17
1359.25
386.93
1678.16
1419.23
518.23
1937.46
366.11
1725.36
1487.32
492.36
1979.68
1175.10
240.14
1415.23
1280.12
344.59
1624.72
1434.37
483.57
1917.94
Aug
1171.51
254.85
1426.36
1316.49
340.47
1656.96
1436.96
380.47
1817.43
Sep
1165.62
273.29
1438.91
1310.68
377.84
1688.51
1434.78
343.31
1778.09
Oct
Nov
1182.60
320.78
1503.38
1254.51
373.34
1627.85
1388.51
466.89
1855.40
1226.92
138.21
1365.13
1297.60
444.75
1742.36
1405.92
314.51
1720.43
Dec
1185.79
476.47
1662.25
1277.94
489.85
1767.80
1427.18
483.48
1910.66
Jan
1230.00
602.44
1832.44
1317.45
544.33
1861.79
1503.06
520.66
2023.72
Feb
1205.10
548.13
1753.22
1327.97
576.64
1904.61
1537.63
585.50
2123.13
March
1177.15
743.63
1920.78
1323.93
630.44
1954.37
1577.80
563.34
2141.14
14263.20
4472.92
18736.12
15675.92
5354.03
21029.95
17489.78
5651.77
23141.55
Total
(v)Table depicting installations for FY-11, FY-12 and FY-13 are shown below:
Month
FY11
FY12
FY13*
Metered
[other
than
BJ/KJ &
IP
BJ/KJ
& IP
Total
Metered
[other
than
BJ/KJ &
IP
BJ/KJ
& IP
Total
Metered
[other
than
BJ/KJ &
IP
BJ/KJ
& IP
Total
Apr
6648697
658362
7307059
6994566
608473
7603039
7349494
636804
7986298
May
6666527
656017
7322544
7015597
610531
7626128
7386804
642327
8029131
Jun
6689390
656210
7345600
7046673
611075
7657748
7416447
648105
8064552
Jul
6745331
620294
7365625
7066879
611637
7678516
7449870
650373
8100243
Aug
6785806
613625
7399431
7091403
612598
7704001
7478151
652676
8130827
Sep
6813006
597069
7410075
7119110
613047
7732157
7503162
653454
8156616
Oct
6844421
598035
7442456
7145423
613784
7759207
7519949
656977
8176926
Nov
6873952
598159
7472111
7165855
619515
7785370
7535839
657465
8193304
Dec
6885698
598342
7484040
7202244
622615
7824859
7600865
696281
8297146
Jan
6913578
599148
7512726
7226471
622371
7848842
7647989
696281
8344270
Feb
6948246
605326
7553572
7251981
626409
7878390
7637989
696281
8334270
March
6969718
608129
7577847
7282238
632730
7914968
7600865
696281
8297146
8
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
LT1:
It is stated in the filing that the Company has covered majority of the
households under the RGGVY scheme by FY-10. There are no special schemes
on hand to service new installations under this category. Hence the
consumers indicated as per DCB for the month of Sept-12 (713132 Nos.) is
retained for the 3rd control period. Any new schemes that may be floated by
the Government will be brought to the kind notice of the Commission.Similarly
growth rate is also not considered as it may exceed 18 unit per installation
resulting the same being shifted to LT2(a) category.
Particulars
BJ/KJ consuming
than 18 units/month
Number
of Cumulative
installations
sales in MU as
as
on on 30.11.2012
30.11.2012
less
715186
82.53
BJ/KJ consuming more
than 18 units/month
0
0
The BJ/KJ installations and sales for FY-13 to FY-16 are furnished below:
Particulars
FY-13
Number of Sales
installations in MU
BJ/KJ consuming
less
than
18
units/month
BJ/KJ consuming
more than 18
units/month
FY-14
Number of Sales
installations in MU
FY-15
Number of Sales
installations in MU
FY-16
Number of Sales
installations in
MU
713132
123.94
713132
128.36
713132
128.36
713132
128.3
6
0
0
0
0
0
0
0
0
LT2a:
RGGVY Scheme was closed during 2010. Hence no RGGVY installations were
considered under LT2a for the sale forecast. The number of installations based
on DCB figures for FY-12 is 54,23,288. For FY-13, 56,79,660 consumers are
calculated based on half yearly figures. The year-end figure for FY-14, FY-15
and FY-16 are based on 4 yr CAGR growth rate of 5.75%.
9
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
The energy sales for FY12 under this category is 4526.77 MU based on actual.
For FY-13, consumption of 4976.84 MU is computed based on half yearly
figures. For FY-14, FY-15 and FY-16, 4 year CAGR at 9.69% is reckoned.
LT3:
As per 2011 census Bangalore Urban has a population of 9.59 million. As per
the statements of BMTC and BBMP, Bangalore receives an average floating
population of 20% over this population (approximately 18 lakhs). Due to
increase
in
floating
population,
the
commercial
activities
such
as
hotels/restaurants, shops, malls etc., are in boom and flourishing. The
upcoming Metro Rail Project in Bangalore may also increase commercial
consumption. Hence the growth rate for consumption is retained at 13.59%
based 4 years CAGR.
LT4a:
It is brought to the kind notice of the Commission that the IP set consumption
for FY 12 – 5265.23 MU was provisional. Further, it issubmitted that BESCOM had
furnished the energy balance statement for FY-12 vide this office letter dated
19.12.2012. The statement indicates the assessed IP set consumption as 5352.7
MU.
Calculation of specific consumption as per data on Nov'2012
Month
IP Consumption in MU
Apr'12
May'12
Jun'12
Jul'12
499.32
518.11
492.21
483.42
Aug'12
Sep'12
380.32
343.16
Oct'12
466.69
Nov'12
Total
No. of Installation as on
30.11.2012
Specific consumption based on
the above information
314.32
3497.55
646934
8109.52
10
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
It is submitted that the above specific consumption has been computed for
the period from April’12 to Nov’12 only. It is noted that consumption for the
period from December to March will
be more when compared to the
consumption from April to November. In this context it is prayed that the
specific consumption is to be worked out for the whole year from April12 to
March13. The details are worked out as below:
Themonth wise IP set consumption for the years FY-11, FY-12 and FY-13 is
shown in the table below:
Month FY-11
FY-12
FY-13
Apr
332.65
478.61
499.32
May
322.65
386.82
518.11
Jun
219.32
366.00
492.21
Jul
240.02
344.48
483.42
Aug
254.73
340.36
380.32
Sep
273.17
377.72
343.16
Oct
320.66
373.22
466.69
Nov
138.09
444.64
314.32
Dec
476.35
489.74
483.48
Jan
602.32
544.23
520.66
Feb
548.01
576.54
585.50
March
743.52
630.33
563.34
Total
4471.49 5352.68 5650.53
The above table indicates that there is an increase in average monthly
consumption for the period from December to March.The consumption for
the period from April to November and December to March for the years FY11, FY-12 and FY-13 are shown below:
Apr-Nov
(8Months)
Dec-Mar
(4 Months)
Total
FY-11
FY-12
FY-13
2101.29
3111.84
3497.55
2370.20
4471.49
2240.83
5352.68
2152.98
5650.53
The above table indicates that there is an increase in average monthly
consumption for the period from December to March.
The specific consumption for the years FY-11, FY-12 and FY-13 is tabulated
below:
11
Bangalore Electricity Supply Company Limited
No. of
Installations
at the end
Replies to Preliminary Observations ARR for FY14 – FY16
FY-10
FY-11
585256
Midyear
installation
Specific
Consumption
Based
on
the
above
FY-12
FY-13
601727
626825
664727
593492
614276
645776
7534.21
8713.8 8749.99
computation,
specific
units/installation/annum is arrived for FY-12.
consumption
of
8714
For FY-13 and for the control
period specific consumption of 8750 units/installation/annum is reckoned.The
hours of power supply is restricted to 6 hours 3 phase as directed by GoK. It is
submitted that the specific consumption of 8750 units/installation/annum may
please be considered for the 3rd control period.
LT5:
The 4 year CAGR for LT5 category is shown in the table below:
Tariff
category
LT-5
FY 07
FY 03
3.3%
FY 08
FY 04
2.9%
FY 09
FY 05
1.1%
FY 10
FY 06
0.2%
FY 11
FY 07
1.3%
FY 12
FY 08
2.2%
From the above table it is seen that there is both a declining and an
increasing trend. Hence the 4 year CAGR of 2% computed for the period
from FY-12 to FY-08 is considered.
LT6 W/s:
Since 4year CAGR scenario is found to be consistent and the same has been
reckoned for projecting the consumers and the consumption for all the
metered categories, the same is applied to this category also.
LT6 Streetlights:
Since 4year CAGR scenario is found to be consistent and the same has been
reckoned for projecting the consumers and the consumption for all the
metered categories, the same is applied to this category also.
12
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
HT2a& HT2b:
The State Government has envisaged many schemes for increasing industrial
and commercial growth in Global Investors Meet.
M/s. BMRCL has proposed to implement their second phase of their project
during this control period.
The HT pending application details are shown in the table below:
Category No.
of Contract
applications Demand in
pending
kVA/HP
HT2a
127
43966
HT2b
283
230404
From the above facts it can be seen that the growth rate considered by
BESCOM is reasonable.
It is submitted that the sales projections are based on past historical growth
and by using empirical formula. It is prayed before the Commission to
approve the projected sales for FY-13 and for the 3rd control period.
b) Power Purchase for FY14:
It is submitted that the source wise power purchase details were obtained from
PCKL and the same was furnished to the Commission. It is learnt that the Power
Purchase cost projected is based on the Power Purchase Agreements executed
with generators.
Further, it is also learnt that RPO the solar projects of KPCL and KREDL is
considered for the Power Purchase projections from FY-14 to FY-16. Details of
estimates are as under:
13
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
Details of Solar and non-Solar Energy estimated for the 3rd control period
Sl.NO.
1
2
3
4
5
Particulars
Estimated Total Energy requirement In
MU
Estimated Energy from Non Solar source
in MU
Estimated Energy from Solar Source in
MU
RPO on total Energy requirement a(both
solar and non-solar)
RPO on Solar against total NCE Source
FY-14
FY-15
FY-16
30659.55
33791.18
37273.45
3066.65
3278.09
3332.64
14.10
42.94
42.94
10.05%
0.46%
9.83%
1.31%
9.06%
1.29%
c) Distribution Losses for FY14:
It is submitted that there are 78,262 cktkms of HT line and 1,54,120cktkms of LT
line as on 30.09.2012. There are 1,69,954 no. of DTCs as on 30.09.2012. The
distribution loss component consists of HT line loss, LT line loss.Transformation loss
and Commercial loss. With the existing network, the line loss is around 10%( LT
line loss is around 6% and HT line loss around 4%) and the transformation loss is
around 2.7%. The rest of the distribution loss is accounted towards commercial
loss. It is difficult to bring downfurther reduction in distribution loss levels.
d) Observation on Capex:
Total expenditure towards Capexshown in D-17 statement includes the works
done under deposit contribution and capital expenditure transferred from other
Divisions. Details of total capital expenditure shown under D-17 are shown
below:
Details of total Capital Expenditure shown under D-17
in Cr.
Expenditure incurred as against the approved Capex of Rs. 660 Cr.
557.68
Expenditure capitalized on account of Deposit Contribution works
Inter Unit Expenditure transfers capitalized under IUA heads
Total Capital expenditure shown under D17
61.98
11.31
630.97
14
Bangalore Electricity Supply Company Limited
Sl.
No.
1
Replies to Preliminary Observations ARR for FY14 – FY16
Scheme wise expenditure- Actuals against approvedpex for FY-12
Rs. in lakhs
Schemes
Approved
Actuals
11 KV Lines for New Stations
690
3112.15
6255
3152.13
325
-
4
5
6
7
8
9
11 KV Other Works + DTCs including dedicated DTCs for DWS
Schemes.
Re-conducturing of ACSR / Rabbit to Coyote in Bangalore
Urban
Re-conducturing of LT line using Rabbit conductor
Re-conductoring (Improvement works on 11 KV Rural Feeders)
Strengthening of 11 KV UG cable Network with RMUs
NJY
Providing infrastructure to Un authorized IP Sets
Metering Programme
580
1800
4950
15400
2800
591.08
1400.2
9.07
8532.27
16.41
159
6.53
10
Metering of BJ/KJ, IP Sets and Street Lights
(Un-metered category)
RAPDRP & DAS
26890
19903.65
11
Service connections
1800
3514.35
12
Replacement of failed DTCs by new ones
1500
3600
13
Civil Engineering works, DSM & Others
730
132.25
14
RE Works (General)
2.5
429.48
240
105.42
2
3
Electrification
Hamlets/Villages
Energisation of IP Sets
KuteerJyothi
15
0.94
SCP
Electrification of
Hamlets/HBs/JCs/Thandas
Energisation of IP Sets
16
250
513.54
KuteerJyothi
TSP
Electrification of Tribal
149.82
Colony
Energisation of IP sets
500
221.12
365
347.1
600
10030.49
KuteerJyothi
17
18
19
20
T&P and Computers
Other works including Safety measures fund, Local Planning,
Formation of ALDC, Spill over works etc.
Providing AB Cable
284
Spill over works for FY 2009-10
Total
66120.7
55768
15
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
4) Observations on items of ARR:
a) O & M expenses:
O&M expenses projected for the Control period i.e, FY-14 to FY-16 is based on
the Commission approved formula.Rs. 690.70 cr 0
indicated towards employees cost for the year FY 12 is on normative basis.
Further for FY 13 considering the actual expenses for the first half year,
expenditure for the second half is projected at Rs 480 crs. Both put together
projection for FY 13 is Rs 870.17 cr (Page no.157). Considering Rs 870.17 cr as
the basis, employee cost for the control year is projective on normative basis.
Similarly other components of O&M expenses are projected.
b. Interest and Finance charges:
The actual cost towards interest and finance charges for FY12 is Rs.397.47
Crores. For FY-13 Rs.421.86Crores is projected as interest and finance charges
based on the loans outstanding, probable borrowing and probable interest
on consumer security deposit. As regards projection for the control period
projection is made on normative basis.
As regards interest on consumers security deposit it is to be stated thatRs
105.87cr indicated for FY 12 is on actual basis. As regards FY 14 the same is
projected on normative basis considering figures for FY 13 i.eRs 117.99 cr
which is calculated based on the opening balance plus projected receipt of
Rs 100 cr at 6% interest. However similar method/assumption is also made for
the control period, but at 9%. Hence there is considerable increase in the
projections.
As regards interest on working capital, projection is made on the
Commission’s prescribed formula, considering interest rate of 14.75% instead
of 11.75.
As narrated in the filing, interest on working capital is projected based on the
norms fixed by the Commission. Interest rate at 14.75 %(
Interest rate
projected based on SBI PLR as on 13th Aug 2011 which is available in the
web as latest) isconsidered for computationof interest on working capital.
16
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
Interest on Consumer security deposit is presently paid at the rate of 6%per
annum and now it is projected at the rate of 9% per annum as per RBI
MONETARY AND CREDIT INFORMATION REVIEW, Volume VIII , Issue 10 April
2012 as stated in page 171 of filing.
The above change in interest rates as resulted in increase in interest and
finance charges. In these circumstances, it is requested that the Commission
may kindly approve the ARR for the control period.
b) Funds towards consumer relations / consumer education:
Commission approved the additionalRs.1.00 crore towards consumer relations
/ consumer education for each year of the 2nd control period commencing
from FY-11 to FY-13. Hence it was shown separately. A separate head of
accountviz 76.193 is prescribed against this head of Account. During FY 12 an
amount of Rs 1,08,767 has been booked under this account. Further, an
amount of Rs 3.08 crore is spent towards consumer relation and education.
For the next control period an amount of Rs 1.0 cr may kindly be allowed
towards the above expenditure.
5. Retail Supply Tariff for FY14:
Tariff Proposal:
BESCOM has proposed 70paise hike across all the categories on average basis
across all the category of consumers excluding subsidized category ie., BJ/KJ and
IP.
6. Kannada Version of Tariff Filing:
Itis to be submitted that BESCOM has taken up the translation of the filing into
Kannada language. However, in the absence of any previous references in
Kannada (either Tariff Order or ERC filing) the expected results at the
expected time frame is not forthcoming since choosing appropriate
terminology equivalent to the terminology used in English has become
more
time
consuming.
As
such,
Hon’ble
Commission
is
requested
kindly to allow 30 days’ time to submit the Kannada draft of the ERC write up.
17
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
General Manager (Finance & Tariff),
BESCOM
18
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
(Wholly owned by Government of Karnataka Undertaking)
GMT/BC-19/F-1029//
Encl:
Corporate Office
K.R. Circle
Bangalore-560001
Date:
C¢üPÀÈvÀeÁߥÀ£É.
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2.GM(F&T)/BC-19/F-1029/ 601-603 /10.12.20012.
3.KERC letter NO.B/23/12/10.12.2012
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gÀÆ. 33,89,500/- (
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ªÀåªÀ¸ÁÜ¥ÀPÀgÀÄ(Expenditure))
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PÀA¥À¤
PÁ0iÀiÁð®0iÀÄ,
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19
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
(Wholly owned by Government of Karnataka Undertaking)
CGMT/BC-19/F-1029/
Corporate Office
K.R. Circle
Bangalore-560001
Date:
Pro forma bill
Pro forma bill for Rs. 33,89,500/- ( Thirty three lakh Eighty nine thousand Five
hundred only ) towards the short paid Application fee for determination of
tariff for retail sale of electricity of BESCOM for FY-14.
( As approved vide
OM. NO.BC-19/F-1001/…………. dated 02.01.2013)
Please arrange to issue cheque for Rs. . 33,89,500/- ( Thirty three lakh Eighty
nine
thousand Five hundred
only
) in favour of Secretary, Karnataka
Electricity Regulatory Commission, Bangalore under the account head of
debit 76.151 fee and subscription.
Asst. General Manager (RA)
Corporate office, BESCOM.
'Counter Signed'
Deputy General Manager (RA)
Corporate office, BESCOM.
20
Bangalore Electricity Supply Company Limited
Replies to Preliminary Observations ARR for FY14 – FY16
21