Bangalore Electricity Supply Company Limited
Truing up for FY-13 and ARR for FY-14 and FY-15
CHAPTER 5
Analysis of Tariff Order-2012 and Tariff Order-2013
Commission issued the Tariff order -2013 dated 30.04.2012 and Tariff Order -2014 on
06.05.2013. Since the earlier Orders other than these two were not issued for the whole years
( Though these Orders are also for 10 Months) it is deemed fit to analyze these Orders.
Issue is analyzed with respect to

Sales and Revenue and

Fixed and variable cost
Sales and Revenue:
Approved & Actual SALES and REVENUE FOR FY-13
Sl
No
Category
1
2
3
4
5
6
7
8
9
10
11
12
13
LT-1
LT-2(a)(i)
LT-2(a)(ii)
LT-2(b)(i)
LT-2(b)(ii)
LT-3(i)
LT-3(ii)
LT-4(a)(i)*
LT-4(a)(ii)*
LT-4(b)
LT-4 (c) (i)
LT-4 (c) (ii)
LT-5(a)
14
LT-5(b)
15
16
17
1
2
3
4
5
6
7
8
9
10
11
Approved as per RST
SalesRs. crores Unit Rate
MU
109.12
55
5.04
5568.37
2386.69
4.29
553.41
189.07
3.42
52.94
36.66
6.92
6.64
4.3
6.48
1796.95
1366.45
7.60
99.57
72.21
7.25
4330.16
567.25
1.31
346.71
45.42
1.31
8.68
1.52
1.75
5.91
1.18
2.00
0
0
888.37
499.94
5.63
SalesMU
125.62
4499.83
425.37
29.97
4.48
1369.90
102.93
5725.73
0.00
5.82
4.46
0.00
724.04
Actuals
Rs.
crores
60.94
1931.83
149.64
19.45
3.00
1048.64
76.00
756.50
0.00
1.15
0.90
0.00
427.63
Unit
Rate
4.85
4.29
3.52
6.49
6.70
7.65
7.38
1.32
1.97
2.01
5.91
Difference
SalesRs. crores
MU
16.50
5.94
-1068.54
-454.86
-128.04
-39.43
-22.97
-17.21
-2.16
-1.30
-427.05
-317.81
3.36
3.79
1395.57
189.25
-346.71
-45.42
-2.86
-0.37
-1.45
-0.28
0.00
0.00
-164.33
-72.31
383.09
236.29
6.17
400.11
218.56
5.46
17.02
-17.73
LT-6
LT-6
LT-7
LT - TOTAL
HT-1
HT-2(a)(i)
HT-2(a)(ii)
HT-2(b)(i)
HT-2(b)(ii)
HT-3(a)(i)
HT-3(a)(ii)
HT-3(a)(iii)
HT - 3b
HT-4(a)
HT-5
529.54
410.02
235.08
15324.57
639.43
3368.2
2502.81
3641.61
236.98
2.41
0.61
0
0.91
121.86
16.37
189.41
205.62
192.8
6049.81
267.28
2041.55
1483.97
2930.45
180.73
0.31
0.28
0
0.29
61.63
9.03
3.58
5.01
8.20
3.95
4.18
6.06
5.93
8.05
7.63
1.29
4.59
464.18
404.93
139.83
14427.21
523.30
2451.94
2332.82
2719.38
189.29
10.90
0.59
278.03
228.44
147.95
5348.64
222.89
1457.74
1374.15
2092.49
143.59
1.86
0.11
5.99
5.64
10.58
3.71
4.26
5.95
5.89
7.69
7.59
1.71
1.95
3.19
5.06
5.52
0.19
120.22
20.17
0.04
62.05
20.25
2.33
5.16
10.04
-65.36
-5.09
-95.25
-897.36
-116.13
-916.26
-169.99
-922.23
-47.69
8.49
-0.02
0.00
-0.72
-1.64
3.80
88.62
22.82
-44.85
-701.17
-44.39
-583.81
-109.82
-837.96
-37.14
1.55
-0.17
0.00
-0.25
0.42
11.22
HT - TOTAL
TOTAL
10531.19
25855.76
6975.52
13025.33
6.62
5.04
8368.80
22796.00
5375.19
10723.83
6.42
4.70
-2162.39
-3059.76
-1600.33
-2301.50
Chapter 5 – Analysis of FY-12 and FY-13
Page 58
Bangalore Electricity Supply Company Limited
Particulars
HT sales in MU
LT sales in Mu
Metered sales in Mu
un metered in MU
HT sales to total sales
LT sales to total sales
Metered sales to total sales
Un Metered sales to total sales
Cross Subsidy Required under LT
Cross Subsidy Provided by HT
Short Cross subsidy
% of cross subsidy
Category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
1
2
3
4
5
6
7
8
9
10
LT-1[fully
LT-2(a)(i)
LT-2(a)(ii)
LT-2(b)(i)
LT-2(b)(ii)
LT-3(i)
LT-3(ii)
LT-4(a)(i)*
LT-4(a)(ii)*
LT-4(b)
LT-4 (c) (i)
LT-4 (c) (ii)
LT-5(a)
LT-5(b)
LT-6
LT-6
LT-7
LT - TOTAL
HT-1
HT-2(a)(i)
HT-2(a)(ii)
HT-2(b)(i)
HT-2(b)(ii)
HT-3(a)(i)
HT-3(a)(ii)
HT-3(a)(iii)
HT - 3b
HT-4(a)
Truing up for FY-13 and ARR for FY-14 and FY-15
Approved
10531.19
15324.57
21069.77
4785.99
Actual
8368.80
14427.21
16944.65
5851.35
41%
59%
81%
19%
1673.77
-1667.80
5.97
13%
37%
63%
74%
26%
2058.89
-1120.64
938.25
19%
APPROVED AND ACTUAL REVENUE FOR FY-14
Approved as per RST
Consumption June to Sept'13
Sales-MU Revenue Crs. Rate
Sales-MU
Revenue Crs. Rate
55.2
27.82
5.04
40.51
19.47
4.81
4995.97
2227.85
4.46
1551.97
705.08
4.54
562
205.49
3.66
158.94
57.20
3.60
36.7
25.37
6.91
10.69
7.46
6.98
4.43
2.85
6.43
1.60
1.07
6.67
1574.3
1242.62
7.89
469.27
367.13
7.82
99.04
75.49
7.62
39.83
28.58
7.18
5660.37
854.72
1.51
1696.34
255.27
1.50
115.52
17.44
1.51
6.16
1.25
2.03
1.31
0.34
2.60
5.55
1.04
1.87
0.90
0.40
4.50
0
0
0.00
0.00
871.2
528.83
6.07
244.35
144.58
5.92
290.7
169.11
5.82
120.88
69.58
5.76
504.8
182.06
3.61
155.34
94.72
6.10
418.48
202.68
4.84
132.68
84.21
6.35
135.01
114.76
8.50
46.09
51.61
11.20
15335.43
5879.38
3.83
4670.70
1886.72
521.18
221.2
4.24
195.53
81.36
4.16
3491.23
2170.28
6.22
839.47
514.11
6.12
2052.15
1260.93
6.14
881.54
521.40
5.91
3217.11
2579.7
8.02
939.82
720.45
7.67
207.88
161.99
7.79
63.93
47.92
7.50
5.56
0.83
1.49
1.46
0.49
3.35
0.65
0.14
2.15
0.21
0.04
2.11
0
0
2.75
1.84
0.16
0.05
3.13
129.56
69.8
5.39
40.10
22.04
5.50
Chapter 5 – Analysis of FY-12 and FY-13
Page 59
Bangalore Electricity Supply Company Limited
11 HT-5
12 HT 2C I
13 HT 2C II
HT total
TOTAL
Truing up for FY-13 and ARR for FY-14 and FY-15
16.69
16.08
9642.17
24977.6
6481
12360.38
Particulars
9.63
4.95
12.51
0.72
3.92
1946.95
6617.65
11.87
0.48
2.68
1329.21
3215.93
9642.17
1946.95
LT sales in Mu
15335.4
4670.70
Metered sales in Mu
19146.5
4881.36
un metered in MU
5831.09
1736.49
HT sales to total sales
39%
29%
LT sales to total sales
61%
71%
Metered sales to total sales
77%
74%
Un Metered sales to total sales
23%
26%
1628.8
467.31
1621.34
347.94
Short Cross subsidy
7.46
119.37
% of cross subsidy
13%
11%
Cross Subsidy Provided by HT
4.85
Approved Actual
HT sales in MU
Cross Subsidy Required under LT
9.49
6.67
6.84
From the above data, it is noticed that there is under sales than the approved figures which
resulted in huge loss of Revenue.
In the year FY-13, there is reduction of sales under LT category to an extent of 785 MU (-5%
as against the approved sales)and 2177 MU in HT category(-21% as against the approved
sales) resulted in under recovery of Rs.2459 Crs.
In 1st half of FY-14 , we cannot compare the approved annual sales against the half yearly
sale, but the percentage of HT sales is decreased and LT sales is increased
These under sales in both the years in the paying category hit the Cross subsidy component
to an extent of Rs.938 Crs. in FY-13 and Rs.120 Crs. in 1 st half of FY-14.
Chapter 5 – Analysis of FY-12 and FY-13
Page 60
Bangalore Electricity Supply Company Limited
Truing up for FY-13 and ARR for FY-14 and FY-15
Approved level of Cross subsidy V/s Actual level of cross subsidy for FY13
Cross subsidy required
Cross subsidizing provided
Tariff category
BJ/KJ
LT2-Rural
IP
HT-water
supply
Approved Actual
level
level
0
32%
74%
5.49%
35%
75%
17%
20%
Approved
level
Actual
level
LT-Comml-Urban
51%
44%
LT-Comml-Rural
44%
38%
LT-indus-Urban
12%
10%
LT-indus-Rural
22%
4%
HT-Indust-Urban
20%
13%
HT-Indust-Rural
18%
11%
HT-Comml-Urban
60%
45%
HT-Comml-Rural
51%
43%
Tariff category
By comparing these two tables, percentage to be cross subsidized has increased but the cross
subsidizing component has decreased. Sales in consumer mix is not in the hands of BESCOM,
Fixed and Variable Cost:
Approved & Actual Fixed and variable cost FOR FY-13
Particulars
Generation
Transmission
Distribution
Regulatory asset for
FY-13+loss of FY12
Total
Approved
10121.65
Actuals
9602.88
1170.96
1466.86
10121.65
1170.96 1175.35
1466.86 1065.91
265.84
2903.66 10121.65
265.84
13025.31
173.94
173.94
2415.2 9602.88 12018.08
25855.76
3.91
1.12
5.04
5.04
25802.505
22878.26
4.20
1.06
5.25
4.69
49148.92
Sales in MU
Variable cost per unit
Fixed cost per unit
Total
Realized
Break even
Loss occurred due to
increase in PP cost
Loss occurred in fixed
cost
Net loss
Chapter 5 – Analysis of FY-12 and FY-13
9602.88
1175.35
1065.91
646.82
644.1
1290.95
Page 61
Bangalore Electricity Supply Company Limited
Truing up for FY-13 and ARR for FY-14 and FY-15
Approved & Actual (Half yearly)Fixed and variable cost FOR FY-14
fixed cost
Generation
Transmission
Distribution
Deficit of FY-12
Total
1063.13
1583.51
82.94
2729.58
Approved
Half yearly Actual
Variable cost Total
fixed cost Variable cost Total
9851.46
9851.46
4685.3
4685.30
1063.13
531.565
531.57
1583.51
664.6
664.60
82.94
41.47
41.47
9851.46 12581.04 1237.635
4685.3
5922.94
Sales
Variable cost per unit
Fixed cost per unit
Total
Realized
Break even
Loss occurred due to increase in PP cost
Loss occurred in fixed cost
Net loss
24977.60
3.94
1.09
5.04
5.04
24907.61
10268.80
4.56
1.21
5.77
4.85
43071.52
635.16
307.40
942.57
From the above, in FY-13, Rs.4.69 is realized as against the realization rate of Rs.5.04
per unit. This resulted in under recovery of Rs.644 Crs in fixed cost. Rs.646 Crs.
increased due to in the variable Cost.
For FY14, ist half yearly figures shows realization of Rs.4.85 per unit as against
approved realization of Rs.5.04. This resulted in under recovery of Rs.307 Crs in the 1 st
half year if self. Rs.635 Crs. incurred due to increase in variable cost in the 1 st half year.
Shortage of Working capital .
Commission approving interest on working capital based on the MYT regulations,
which allows interest on (a) 2 months receivables (b)1 month O&M expenditure and
(c) 1% Gross fixed asset.
As per the audited accounts receivable of BESCOM from past shown as under:
Chapter 5 – Analysis of FY-12 and FY-13
Page 62
Bangalore Electricity Supply Company Limited
Truing up for FY-13 and ARR for FY-14 and FY-15
Closing balance in Crs.
Category
FY-09
FY-10
FY-11
FY-12
FY-13
FY-14
(as
on
30.09.2013)
LT-Domestic
140.17
124.9
115.11
118.72
176.37
208.66
LT-6 water Supply
344.81
454.05
603.01
786.77
1005.54
1129.41
LT-6 Street light
246.68
291.26
336.42
445.14
565.87
625.87
4.23
6.66
10.62
18.99
30.16
31.37
735.89 876.87
1065.16
1369.62
1777.94
1995.31
140.98
329.27
633.73
1042.05
1118.44
HT-1
Total
Accumulated balance
It could be seen from the table, accumulated dues from the arrears from the Local
bodies and the domestic category is eaten away the most of the working capital
provided by the Commission.
Beside this, there is no tariff revision for water supply installations and these
categories are considered as subsidized categories. But due to addition of interest
component to the demand, their realization rate turns to subsidizing category. This is
affecting the cross subsidy component.
Chapter 5 – Analysis of FY-12 and FY-13
Page 63