BESCOM Business Plan for2014-2018
BUSINESS PLAN OF BESCOM
2014-2018
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BESCOM Business Plan for2014-2018
MISSION
The mission of BESCOM is to ensure complete customer
satisfaction by providing its customers quality, reliable
power at competitive rates.
BESCOM is set to achieve this mission through:
• Best practices in the construction and maintenance of distribution
network
• High standards of customer service
• Optimum usage of technical and human resources
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BESCOM Business Plan for2014-2018
Executive Summary
The dominant function of BESCOM is the distribution of Electricity in its designated area.
Power is purchased from generating companies like Karnataka Power Corporation Ltd.,
Central Generating Companies, Independent Power Producers (IPPs),at the agreed rates
and sold to different categories of consumers at the rates determined by the Karnataka
Electricity Regulatory Commission. The following chain of offices has been established to
enable BESCOM to attend to the needs of consumers in terms of servicing of installations,
collection of revenue, maintenance of11KV lines and distribution transformers, attending
consumer complaints and augmentation of infrastructure etc.:
Bangalore Electricity Supply Company Limited (BESCOM), a Govt. of Karnataka enterprise,
was founded in June 2002, with the objective to providing quality and reliable power at a
competitive price to consumers in the 8 districts under its jurisdiction. Since then, it has
harnessed technological innovations and initiated other reforms in the power sector
towards the objective of ensuring better connectivity. At
the same time it has also introduced measures such as e-Tendering, Spot Billing, Microfeeder Franchisees, etc., to help improve functioning in both urban and rural areas. In other
words, BESCOM has been striving to light up more lives while maintaining the highest
standards in customer service.
Sl.
No
1
2
3
4
5
6
7
8
9
A
B
10
11
Particulars
Position as on 30-09-2012
Area
Districts
Population
Zone
Sub-stations (220, 110 & 66 KV) (All maintained by
KPTCL)
DTCs
HT lines
LT lines
Total employees strength:
Sanctioned
Working + majdoor
Demand (FY-12)(excld. Other income)
Collection (FY-12)(excld. Other income)
Statistics
Sq.km.
Nos.
lakhs
Nos.
Nos.
41092
8
207
3
410
Nos.
ckt. kms.
ckt. kms
169954
78262
154120
Rs. in Crs
Rs. in Crs
16902
10574
9405
8851
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BESCOM Business Plan for2014-2018
Distribution Area:
BESCOM a Government of Karnataka enterprise, having Eight Districts under its
jurisdiction and has got offices at various places, which are listed below:
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BESCOM Business Plan for2014-2018
BESCOM Operational Structure
BESCOM
Zones
Bangalore
Metropolita
n Area Zone
BESCOM
Bangalore
Rural Area
Zone
Circles
Divisions
North
5 Divisions
18 Sub
Divisions
South
3 Divisions
12 Sub
Divisions
East
3 Divisions
11 Sub
Divisions
BRC
4 Divisions
16 Sub
Divisions
Kolar
4 Divisions
16 Sub
Divisions
Tumkur
3 Divisions
16 Sub
Divisions
Davanagere
4 Divisions
17 Sub
Divisions
Chitrdurga
Area Zone
Sub
Divisions
3 Zones
7 Circles
26
Divisions
106 Sub
Divisions
CEs.
SEEs
EEs
AEEs
C, O & M
Sections
432 C, O &
M Sections
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BESCOM Business Plan for2014-2018
Zonal Offices:
1. Bangalore Metropolitan Area Zone, Nrupathunga Road , Bangalore
2. Bangalore Rural Area Zone, Nrupathunga Road, Bangalore
3. Chitradurga Zone, Chitradurga
Circle Offices:
1. Bangalore North Circle, Nrupathunga Road, Bangalore
2. Bangalore South Circle, Nrupathunga Road, Bangalore
3. Bangalore Rural Circle, Nrupathunga Road, Bangalore
4. Bangalore East Circle, Cunningham Road, Bangalore
5. Kolar Circle, Kolar
6. Tumkur Circle, Tumkur
7. Davanagere Circle, Davanagere
Divisions: 26
Sub-divisions: 108
Sections: 432
In today's world, progress is impossible without a strong infrastructure backbone. A
growing nation has huge expectations that its basic needs will be met. There is no doubt
that in our modern world, electricity is a basic need. We can put it as food, clothing, shelter
and electricity. No exaggeration. We, at BESCOM, believe it is a huge challenge as well an
opportunity to meet the aspirations and the energy requirements of a rapidly growing part
of the dynamic state of Karnataka. BESCOM is supporting the growth story with its
endeavour to provide electricity wherever and whenever it is needed. With a vision,
strategy and action plan to ensure that our electricity needs will be met, adequately. Now,
and in the future.
Performance over the years:
10 years is a long time, some say, to describe the journey of an organization. We believe
our commitment to attain our organizational objectives are amply demonstrated in the
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BESCOM Business Plan for2014-2018
figures that accompany. It is indeed heartening for us that there has been a constant
improvement over the years on all key operating parameters thus making us a healthy
corporation. While there
is a customer growth of 50%, the revenue side story too is impressive: a jump of over
206%. The losses area is healthy too: Distribution, AT&C and Transformer failure losses
have shown a steady decline.
Performance of BESCOM ( in last 10 years)
Particulars
Consumers
Revenue Demand
Revenue Collection
Collection Efficency (Exc. BJ/KJ)
Distribution Transformers
HT lines
LT lines
Distribution Losses
Transformer failure rates

Units
Lakhs
in Rs Crores
in Rs Crores
in Rs Crores
Nos.
Ckt. KMs
Ckt. KMs
in percentage
in percentage
2001-2002
46.57
2276
2089
88
61429
45543
127658
25
15
2011-12
79.66
9213
8915
96.61
161905
75704
150105
14.46
5.76
HR Initiatives:
Training and Evaluation:
BESCOM has a work force of about 10,265 employees. Optimum utilization of Human
Resources contributes to the growth of the organization. Imparting training to the
employees is thus very important and BESCOM plans to conduct training for employees on
a regular basis. About 2273 officers and employees were trained on Ethical Governance
and Work- fulfillment under the "Parivarthana Dhere" programme. Achara Niranthara
Training Programmewas conducted for all employees successfully.
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BESCOM Business Plan for2014-2018
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BESCOM Business Plan for2014-2018
Sevottam workshop:
FICCI Quality Forum, New Delhi conducted a 2- day workshop for developing a Sevottamcomplaint Citizen’s Charter for BESCOM on 29th February and 1st March 2012. 25 officers
attend the workshop.

Customer service through technology focus:
In pursuit of achieving the better performance in the area of customer service, BESCOM has
taken various initiatives towards technology developments. Some of the key initiatives
taken by BESCOM are as follows:

Smart Meter
BESCOM has taken initiative to provide Smart Meters to all the categories in the LT
segment in a phased manner beginning with Commercial consumers. The Smart Meter
project follows the principles of the AMR (Automated Meter Reading) and AMI (Advanced
Metering Infrastructure).
The top level architecture of Smart Meter and Communication modes AMR-AMI system
offers services and benefits to all stakeholders of the system. The Smart Meter can be used
both for Pre-payment and Post-payment with AMR features and 2- way communication

Smart Grid
BESCOM has envisaged a Smart Grid Pilot Project in Bangalore city. Smart Grid is a means
to fulfill BESCOM's mission and realize its vision. Bangalore is the best test site for the
Smart Grid in the country because of the Distribution Automation System being
implemented here and the transmission SCADA
already in place. The presence of local IT and professional skills are added advantages for
bringing in the Smart Grid. M/s CPRI have already been appointed the national consultants
by USAID.
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BESCOM Business Plan for2014-2018

Bangalore Automation
For quality and reliability in power supply, as well as improved customer satisfaction
through speedy fault location and restoration, BESCOM has planned for a Distribution
Automation system in Bangalore city at a cost of around Rs. 563 crores. Project consultants
have already been appointed and their work has commenced during the year.

Power-Bill Net
Power-BillNet is a complete billing and collection software with advanced features such as
Spot Billing and Anywhere Payment Collection (of payment by third parties),Easy Bill, Bill
Desk, Any Time Payment / B1 (e-governance), etc. and role-based user access.
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BESCOM Business Plan for2014-2018

Customer-friendly Measures:
24x7 HELP LINE for All
Electricity related Complaints:
Telephone Number:
08022873333

Customer Care Center:
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BESCOM Business Plan for2014-2018

Complaint Lodging through SMS:
 Payment Modes:
• Sub -divisional cash counters
• ECS
• Bangalore–One counters
• Any Time Payment counters
• Easy Bill Payment
• Bill Junction and Bill Desk
• Micro-feeder Franchisee
• Check drop-boxes
• Anywhere Payment
• Payment through SBI and SBM ATMs
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BESCOM Business Plan for2014-2018
• Payment through Credit / Debit Cards
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BESCOM Business Plan for2014-2018
Bill
Collection
Centres
Online
Payment
ECS
Collections
Revenue
Collection
Automated
Kiosks
Indian Post
Bangalore
One
Cheque
Drop Box
 Customer Interaction Meetings (CIM):
CIM is a platform for both consumers and local BESCOM officials to interact every month.
Consumer can voice their long pending grievances, opinions and suggestions at the CIM.
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BESCOM Business Plan for2014-2018
 Awareness Programme
A massive communication campaign is being taken up to bring awareness among the public
to adopt energy- efficient methods to save energy and to conserve energy.
• Advertisement in Newspapers, Magazines, Souvenirs, etc.
• Jingles on Doordarshan, AIR, Big FM, etc. Posters, Pamphlets, Brochures,
Car Stickers, etc.
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BESCOM Business Plan for2014-2018
Business Plan Projections:

Sales projections for the period from 2013-14 to 2017-18:
The sales projection is projected on the following lines:
The historical data for past years is available. The CAGR for 7yrs, 6 yrs, 5 yrs, 4 yrs, 3 yrs, 2
yrs and one year growth is computed. Accordingly, 7 scenarios of projections were
analyzed. An empherical formula is made use of.
The minima and maxima and most likely of all the CAGR years are worked out - minima is
considered as pessimistic and maxima is considered as optimistic, the average of the rest is
considered as most likely.
Statistical empirical formula is applied for all the scenarios
Average = (Optimistic+Pessimistic+4X Most Likely)/6
The Compounded Annual Growth Rate of energy Consumption computed is shown below:
Category wise sales projections in MU:
Consumer Category
Domestic
Commercial
Agriculture
Industrial
Industrial
Commercial
Agriculture
others
Total
Growth in
Percentage

FY-14
FY-15
FY-16
FY-17
FY-18
Low Tension-LT
5627.05
6164.2
6753.11
7398.81
8106.78
1709.99
1942.43
2206.47
2506.4
2847.1
6347.57
6691.83
7055.18
7438.79
7843.91
1140.84
1167.55
1194.88
1222.86
1251.49
High Tension-HT
5711.88
6475.37
7340.93
8322.17
9434.58
3413.97
3825.81
4287.34
4804.54
5384.13
6.18
7.29
8.6
10.15
11.99
Others
1429.77
1776.63
2173.42
2629.85
3205.63
25387.25 28051.11 31019.93 34333.57 38085.61
10.49%
10.58%
10.68%
10.93%
Demand Projections for the period from 2013-14 to 2017-18:
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BESCOM Business Plan for2014-2018
The projections of demand has been arrived by grossing up above consumption projections
with the estimated transmission loss, distribution loss and load factor.
BESCOM has considered the transmission loss of 4.40% for FY-14 and reduction of 0.10%
is proposed for each year of the succeeding years.
As per the data gathered the average load factor was around 77%. However, for future
projections a load factor of 80% is considered for the succeeding years.
Considering the above assumptions, demand projections for the period from FY-14 to FY18 is tabulated below:
Particulars
Total sales
Distribution Loss
Energy Input @ IF point
Transmission Loss
Energy Input @ Gen point
Avg.MW requirement
Load Factor
Peak MW requirement
FY-14
25387
13.8
29452
3.94
30660
3500
0.80
4375
FY-15
28051
13.6
32467
3.92
33791
3857
0.80
4822
FY-16
31020
13.4
35820
3.90
37273
4255
0.80
5319
FY-17
34334
13.2
39555
3.88
41151
4698
0.80
5872
FY-18
38086
13.0
43777
3.86
45534
5198
0.80
6497
Reduction in Distribution Loss
26
24.2
23.73
24
22
19.99
20
18
16.64
15.14
16
14.48
14.46
14.0
13.8
13.6
13.4
13.2
13.0
FY-14
FY-15
FY-16
FY-17
FY-18
14
12
10
FY-06
FY-07
FY-08
FY-09
FY-10
FY-11
FY-12
FY-13
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BESCOM Business Plan for2014-2018

Power Purchase plan:
BESCOM has to arrange for the power requirement of its distribution license area. In the
above paras, energy requirement and demand have been worked out. Based on these sales
and demand projections the source wise energy and the cost for the period from FY-14 to
FY-17 have been gathered from PCKL. For FY-18 based on the energy requirement the
source wise power purchase cost have been computed duly taking the average source wise
cost. The power purchase requirements have been arrived from the following sources.
Karnataka Power Corporation Limited (KPCL)- Hydel
Karnataka Power Corporation Limited (KPCL)-Thermal
Central Generating Stations.
Major Independent Power Producers (Major-IPPs)
Non-Conventional Energy Sources (NCE)-Old
Non-Conventional Energy Sources (NCE)-New
Jurala- Hydel
Medium/Short term power purchase
Source wise projected Energy requirement in MU
Source
FY-14
FY-15
FY-16
FY-17
KPCL-hydel
3539.77
3405.19
3405.19
3405.79
KPCL-Thermal
8156.77
9802.86 17915.81 18934.49
CGS
7351.7
7779.95
7951.17
7951.17
Major -IPPS
3691.01
3691.01
3691.01
3691.01
NCE-old
2979.46
2978.49
2978.49
2978.49
NCE-New
101.29
342.54
397.09
397.09
Jurala
137.02
137.02
137.02
137.02
Medium/Short Term
4702.59
5654.28
797.76
3656.09
Total
30659.61 33791.34 37273.54 41151.15
FY-18
3438.99
18934.49
7951.17
3691.01
2978.73
398.09
137.02
8005.00
45534.50
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BESCOM Business Plan for2014-2018
Source wise projected Power purchase cost in Rs. Crs.
Source
FY-14
FY-15
FY-16
FY-17
FY-18
KPCL-hydel
252.53
257.60
258.40
263.48
266.05
KPCL-Thermal
2872.46
3882.59
7636.42
8179.20
8179.20
CGS
2538.46
2755.14
2869.25
2913.18
2913.18
Major -IPPS
1154.19
1154.18
1154.18
1453.65
1453.65
NCE-old
1047.73
1052.39
1057.43
1062.60
1062.69
NCE-New
46.51
162.13
183.84
183.84
184.30
Jurala
30.17
30.93
31.70
32.49
32.49
Medium/Short Term
2068.00
2808.75
398.84
1553.84
3402.13
Total
10010.05 12103.71 13590.06 15642.28 17493.68
Transmission Charges: Transmission cost :
The transmission charges towards Central Generating Stations are included in the
computation of power purchase cost for the respective years.
The transmission system in Karnataka operates as one composite net work for the purpose
of sharing of charges. The Annual Revenue Requirement of various transmission licensees
are pooled together and shared by distribution licensees in their proportion of allocation
of installed capacity to the ESCOMs as made by the Government of Karnataka. In order to
project the transmission charges BESCOM has considered the present transmission charges
as approved by the Hon’ble Commission vide Tariff Order-2012 dated 30.04.2012 and
escalated by 10% per annum.
The approved transmission Tariff for FY-13 was Rs.952.10 Crs. Per annum. The computed
transmission charges based on the above assumption is tabulated for the period from
FY-14 to FY-18 :
Year
Cost in Rs. Crs.

FY-14
FY-15
FY-16
FY-17
FY-18
1316.44 1338.01 1522.06 1674.266 1841.6926
Capex plan:
BESCOM comes under southern grid and the peak demand is growing at a higher
percentage compared to the energy requirement. Besides other reasons this phenomenon
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BESCOM Business Plan for2014-2018
can be attributed to growing urbanization, changes in life style & efficiency improvement
(In terms of reduction in losses) in the distribution system. Specially in case of BESCOM the
reduction in losses has led to suppressed increase in energy requirement, whereas the
higher penetrations of electronics appliances have led to higher increase in the peak
demand during the past two years.
BESCOM has identified the following key areas for the need based investments.

AT&C losses reduction :-

Metering:

Reconductoring of lines (HT and LT)

Evacuation of New Line/link Line for Urban / Rural Area:Improvement in quality of supply:

Other normal schemes

IT interventions
Capital Works envisaged from 2013-14 to 2017-18:BESCOM has prepared a perspective plan for capital investments totaling to
Rs.2932.00 Crores for the period from 2013-14 to 2017-18 Year on year, scheme
wise detailed proposed investment is furnished below:
Sl.
No
1
A
B
C
D
2013-14
Schemes
E&I
11 KV Lines for New
Stations
11 KV Other Work+
DTCs including
dedicated DTCs for
DWS Schemes.
Re- conductoring of
ACSR /Rabbit to
Coyote in Bangalore
Urban
Re-conductoring of
Plan
2014-15
Non
Plan
Plan
2015-16
Non
Plan
Plan
Non
Plan
Rs. in Crores
2016-17
Non
Plan
Plan
2017-18
Plan
Non
Plan
20.00
50.00
80.00
80.00
80.00
15.00
40.00
70.00
70.00
70.00
10.00
5.00
10.00
5.00
30.00
20.00
30.00
20.00
30.00
20.00
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BESCOM Business Plan for2014-2018
E
F
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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
(A) DTC Metering
Programme Non
RAPDRP Area
(B) Replacing
Mechnanical Meter
By Electrostatic.
( C ) Smart Meter,
HT- TOD Meter
Replacing MNR etc .
RAPDRP & DAS
Service connections
Replacement of
failure DTCs by new
ones
A)Civil Engineering
works, DSM &
Others
B)Consumer
Education
HVDS
Providing fault
locators
Electrification
Hamlets /Villages
Energisation of IP
Sets
T &P and
Computers
Other works
including Safety
measures fund,
Local Planning
Providing AB Cable
Total
Grand total
10.00
20.00
20.00
20.00
20.00
10.00
10.00
25.00
25.00
25.00
20.00
60.00
60.00
60.00
60.00
10.00
25.00
30.00
30.00
30.00
40.00
30.00
20.00
20.00
20.00
20.00
150.00
40.00
140.00
30.00
30.00
30.00
370.00
25.00
25.00
25.00
25.00
25.00
15.00
15.00
15.00
15.00
15.00
25.00
25.00
25.00
25.00
25.00
1.00
30.00
1.00
120.00
1.00
1.00
1.00
5.00
1.00
1.00
1.00
1.00
6.00
6.00
5.00
5.00
5.00
6.00
20.00
20.00
15.00
15.00
5.00
10.00
10.00
10.00
10.00
20.00
30.00
20.00
90.00
20.00
120.00
20.00
100.00
20.00
110.00
30.00 597.00
627.00
30.00 572.00
602.00
30.00 582.00
612.00
31.00 817.00
848.00
31.00 732.00
763.00
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BESCOM Business Plan for2014-2018

Annual Revenue Requirement:
The final tariff paid by the consumer comprises of (excluding the past recoveries)
(1) Power purchase cost
(2) Transmission charge
(3) Distribution net work cost.
Annual fixed charges for the distribution net work is worked out and shown below:
Particulars
R&M Expense
Employee Expenses
A&G Expense
Depreciation
Interest & Finance
Charges
ROE 15.5%
Less : Other Income
Annual Revenue
Requirement

FY-14
56.30
957.40
112.60
143.69
FY-15
63.70
1082.70
127.40
157.98
FY-16
71.60
1217.90
143.30
167.07
FY-17
78.76
1339.69
157.61
178.76
FY-18
86.64
1473.66
173.37
191.28
703.85
86.81
179.74
805.96
103.63
186.75
899.06
123.71
193.96
999.06
143.71
203.96
1099.06
163.71
213.96
1880.91
2154.62
2428.68
2693.63
2973.75
Average Cost of Service:
BESCOM has presented the Annual Revenue Requirement arising out of the above
projections. In making the projections BESCOM restricted itself to ARR arising in that
year only and not considered the impact of the past year performance in terms of truing up
and in terms of gap arising there from. In other words ARR presented is a “Stand alone”
ARR of various years
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BESCOM Business Plan for2014-2018
Particulars
Power purchase Cost in
Rs. Crs.
Transmission Cost in Rs.
Crs.
R&M Expense
Employee Expenses
A&G Expense
Depreciation
Interest & Finance
Charges
ROE 15.5%
Less : Other Income
Annual Revenue
Requirement
Sales In MU
Average Cost of Supply
in Rs./Unit
FY-14
FY-15
FY-16
FY-17
FY-18
10010.05
12103.71
13590.06
15642.28
17493.68
1316.44
56.30
957.40
112.60
143.69
1338.01
63.70
1082.70
127.40
157.98
1522.06
71.60
1217.90
143.30
167.07
1674.27
78.76
1339.69
157.61
178.76
1841.69
86.64
1473.66
173.37
191.28
703.85
86.81
179.74
805.96
103.63
186.75
899.06
123.71
193.96
999.06
143.71
203.96
1099.06
163.71
213.96
13207.40 15596.34 17540.80 20010.18 22309.13
25387.25 28051.11 31019.93 34333.57 38085.61
5.20
5.56
5.65
5.83
5.86
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