Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
CHAPTER – 8
Annual Revenue Requirement For The 3rd Control Period(FY-14 to FY-16)
Principles for computation of Annual Revenue Requirement (ARR ) of the
Distribution Licensee is laid down in chapter-III of MYT regulations -2006 framed
by the Commission. Computation of ARR of each year of the Control period shall
comprise of the following, namely:
(a)
Power Purchase Costs
} for Retail Supply
} Business
}
(b)
Transmission and SLDC Charges
(c)
Operation and maintenance expense
(d)
Interest on loan capital
(e)
Return on equity
(f)
Depreciation
(g)
Interest on working capital
(h)
Taxes on Income
(i)
Other expenses if any
(j)
Less: Non-tariff income, income from Other Business.
Based on the above Principles, the following cost are estimated as under:
8.1 Power Purchase Costs:
Power Purchase for FY 13:1.
The Commission has approved source wise power purchase quantum and
cost for FY 13. The actual cost incurred upto Sept 2012 and the Commission’s
approved figures for FY-13 is tabulated below.
Chapter 8 – ARR for FY14 to FY16
Page 134
Bangalore Electricity Supply Company Limited
Source
KPCL Hydel
KPCL Thermal
CGS
IPPs
NCE
Others
Short term
Transmission Charges
SLDC Charges
PGCIL
Total
2.
MYT for 3 rd control period (FY14 – FY16)
Approved
Energy in
Cost in
MU
Rs/Crore
3596.27
246.81
8840.78
2757.14
5659.02
1704.79
2817.18
1055.40
2692.05
958.95
134.97
29.33
7564.51
3369.22
952.09
11.07
207.80
31304.78 11292.61
Actual upto Sept-2012
Energy in
Cost in
MU
Rs/Crore
1421.40
118.45
3042.36
1148.13
2720.87
713.19
1193.15
425.91
1909.51
649.18
382.62
202.79
(Section11)
3491.09
1510.95
467.56
86.99
14161.02
5323.15
GOK vide order dated 23.4.2012, has revised the share of allocation and the
same is incorporated in Tariff order for 2013. The revised source wise allocation is
as below.
KPCL:Hydel
Thermal
DG Plant
CGS:Major IPPs:-
Sharavathy
Others
RTPS 1 to 7
RTPS 1 x 250 MW
BTPS
NTPC, NLC, PGCIL, MAPS
16.97%
41.58%
49.62%
& Kaiga
Tata, Rayalaseema (upto Aug12) & UPCL
NCE:-
Wind, Mini hydel, Biomass, Co-gen (Based on
Geographical Area)
Short term:-
M/s JSW, PTCIL, NETS etc
3.
100%
49.62%
49.62%
100%
70.62%
The Tariff of state owned stations (KPCL) is as per PPA approved by KERC
and at provisional tariff for which PPAs are yet to be approved (Varahi 3 & 4,
erstwhile VVNL Hydel and RTPS 1x 250 MW).
The Tariff of CGS is as per CERC Tariff Regulations 2009. The Tariff of atomic
stations is as approved by Department of Atomic energy.
Chapter 8 – ARR for FY14 to FY16
Page 135
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
The Tariff of Tata Power is as per PPA and that of UPCL is provisionally approved by
GOK. The final Tariff is yet to be approved by CERC.
The tariff of short term contracts is as per PPA.
There is acute shortage in power availability due to failure of monsoon and
4.
to mitigate the shortage, BESCOM had entered into short term contracts and
procured power from Non PPA Generators as per GOK order dated 27.1.2012, under
Section 11 of Electricity Act 2003. The rate provisionally fixed by GOK is Rs 5.30 per
unit which is subject to approval of the Commission. BESCOM had filed a petition for
determination of tariff which is yet to be finalized.
The power procurement details from short term and section 11 periods is as
5.
below.
(a) Short term purchase:Name of the Company
Energy in MU
M/s NETS
M/s JSW
M/s PTCIL
BMM ISPAT
M/s Harekrishna
M/s Tata
M/s NSL (Tungabhadra)
M/s GUVNL
Total
536.38
1728.45
67.07
72.42
14.23
27.53
17.32
1027.69
3491.09
Amount in
Rate
Rs/Crore
Rs/Unit
216.50
4.04
757.41
4.38
35.62
5.31
29.69
4.10
7.33
5.15
14.76
5.36
9.18
5.30
440.46
4.29
1510.95
(b) Section 11 period purchase (April-12 and May-12)
Name of the Company
JSW
NSL Tungabhadra
Core Sugars
Sathavahana Ispat Ltd
Indian Cane Sugars
Star Metallics
Satish Sugars
Parrys Sugars
Sadhashiva Sugars
Chapter 8 – ARR for FY14 to FY16
Energy in
MU
210.73
11.52
6.15
2.20
16.95
12.10
5.39
1.09
2.69
Amount in
Rs/Crore
111.69
6.10
3.26
1.17
8.99
6.41
2.86
0.58
1.43
Page 136
Bangalore Electricity Supply Company Limited
Davangere Sugars
Dhruvdesh Meta Steel
Vishwanath Sugars
Ugar
Sugar
Works
(Chikkodi)
JK Cements
Himatsingka
Ugar Sugar Works (Yadgir)
Nirani Sugars
Renuka Sugars
Gem Sugars
Sunvik Steels
Surana
Prabhulingeshwara
Bannari
Jamakhandi Sugars
Nandi Sahakari Sakkare
Godavari Bio Refinaries
GM Sugars
Shiva shakthi sugar
Indian Sugar
Total
15.90
5.42
7.01
8.43
2.87
3.72
0.65
0.35
3.34
3.50
2.42
12.69
9.91
6.22
0.53
10.39
4.41
4.77
5.96
6.34
9.27
1.48
1.56
2.03
382.62
1.77
1.86
1.28
6.72
5.25
3.30
0.28
5.51
2.34
2.53
3.16
3.36
4.89
0.78
0.82
1.08
202.79
Available energy for the next half year of FY-13 is shown in the table below:
6.
Source
KPCL Hydel
Availability from Oct-12 to Mar-13
Energy in MU
Cost in Rs/Crore
1817.74
112.05
KPCL Thermal
4402.05
1217.14
CGS
2801.06
960.31
IPPs
2923.29
1087.98
NCE
1.97
11.49
3531.45
15489.05
1.18
0.18
1417.97
4796.81
Others
Short term
Total
7.
MYT for 3 rd control period (FY14 – FY16)
Though the power procurement from following projects are approved by the
Commission, the same is not available to BESCOM since the projects are not yet
commissioned as at the end of Sept 2012.
Chapter 8 – ARR for FY14 to FY16
Page 137
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Name of the Company
Energy in MU
BTPS Unit – II
932.69
NLC II Expansion – 1
71.28
NLC II Expansion – 2
8.49
Simhadri – 2
256.47
Vallur TPS Stage – 1
100.8
Vallur TPS Stage – 2
60.48
NCE (New)
66.58
Others (TB dam and Jurala)
Total
8.
134.97
1631.76
The total power purchase cost for FY-13 after subtracting the energy not
available is shown in the table below:
Actual upto
Sept-2012
Approved
Availability from
Oct-12 to Mar-13
Projected for FY-13
Energy in
MU
3596.27
Cost in
Rs/Crore
246.81
Energy in
MU
1421.4
Cost in
Rs/Crore
118.45
Energy in
MU
1817.74
Cost in
Rs/Crore
112.05
Energy in
MU
3239.14
Cost in
Rs/Crore
230.50
KPCL Thermal
8840.78
2757.14
3042.36
1148.13
4402.05
1217.14
7444.41
2365.27
CGS
5659.02
1704.79
2720.87
713.19
2801.06
960.31
5521.93
1673.50
IPPs
2817.18
1055.4
1193.15
425.91
2923.29
1087.98
4116.44
1513.89
NCE
2692.05
958.95
1909.51
649.18
1.97
1.18
1911.48
650.36
134.97
29.33
202.79
11.49
0.18
7564.51
3369.22
382.62
(Sec11)
3491.09
1510.95
3531.45
1417.97
Transmission
Charges
SLDC Charges
-
952.09
-
467.56
-
11.07
-
-
PGCIL
-
207.8
-
86.99
Total
31304.78
11292.61
14161
5323.15
Source
KPCL Hydel
Others
Short term
Less: Energy
Not available
Grand Total
15489.05
202.97
7022.54
2928.92
484.53
952.09
86.99
173.98
5368.34
29650.07
10691.49
1631.76
580.35
28018.31
10111.14
The Commission in its order OP 08/2009 had treated certain extra expenditure on
power purchase as Regulatory Asset and further ordered that the Regulatory Asset
of Rs.37.74 Crore shall be passed on to the consumers in three equal installments in
each year of the control period FY11-13. Accordingly, the Commission in its MYT
Chapter 8 – ARR for FY14 to FY16
Page 138
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Order dated 07.12.2010 had included an amount of Rs.12.58 Crore for each of the
years during FY11-13. Accordingly, Rs.12.58 Crore is included in the power
purchase cost for FY13. The Power Purchase Cost works out to Rs. 10123.72 Cr.
ENERGY AVAILABILITY & COST FOR 2013-14 to 2015-16
Total energy requirement of ESCOMs for multi-year tariff period from 2013-14 to
2015-16 is shown in the table below:
Energy in MU
ESCOMs
BESCOM
GESCOM
HESCOM
MESCOM
CESC, Mysore
Total
2013-14
2014-15
2015-16
30660.00 33791.18
8330.00
9130.37
11129.00 14170.83
5018.00
5250.79
6874.00
7950.45
62011.00 70293.62
37273.45
9683.29
15962.44
5782.34
8222.58
76924.10
The projected energy availability and power purchase cost is allocated among the
ESCOMs based on GoK order dated 23rd April 2012.
The year wise availability of energy and deficit for the year 2013-14 to 2015-16 is as
detailed below:
Energy in MU
Year
2013-14
2014-15
2015-16
Availability Deficit/Surplus
58532
-3479
60572
-9722
77780
856
ESCOMs having a long term power purchase agreement with KPCL Hydel, Thermal,
Central Generating Stations, Independent power producers, Non conventional
Energy Source and others. ESCOMs have entered into agreement with traders for
procurement of power on medium term basis through competitive bidding route.
Chapter 8 – ARR for FY14 to FY16
Page 139
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
KPCL, Hydro
Energy availability of hydel stations is anticipated based on the inflows for the past
ten years moving average minus 1% auxiliary consumption as per PPA. In case of
KPCL thermal stations, auxiliary consumption considered by KPCL is shown in the
table below:
Thermal stations
RTPS unit 1 to 7
RTPS Unit 8
BTPS Unit 1
BTPS Unit 2
DG plant
Yermarus Unit 1 & 2
BTPS Unit 3
Bidadi CCCP
Auxiliary
Consumption in %
9.00
8.50
7.50
7.50
4.50
6.00
6.00
3.00
As per KPCL statement on energy projection, following units are expected to
commission during control period of 2013-14 to 2015-16, as shown in Table.
Units
Yermarus Unit-1
BTPS Unit 3
Bidadi CCCP
Yermarus Unit 2
Expected date of
commissioning of unit
2014-15
2015-16
2015-16
2015-16
The details of energy availability furnished by KPCL in respect of Hydel and thermal
generating stations have been considered. The availability of hydel generation is as
shown in Table.
Energy in MU
Sl
no
1
2
3
4
5
6
Generating Station
Sharavathy valley project
Kali Valley projects
Varahi Valley projects
Bhadra & Bhadra Right
Bank
Ghataprabha(GDPH)
Kadra Dam
Chapter 8 – ARR for FY14 to FY16
Design
Energy
3737.95
2058.77
848.69
50.49
2013-14
2014-15
2015-16
4982.23
2954.17
1027.38
62.50
4759.72
2686.86
1014.75
52.47
4759.72
2686.86
1014.75
52.47
84.97
419.90
94.24
345.09
91.08
311.85
91.08
311.85
Page 140
Bangalore Electricity Supply Company Limited
7
8
9
10
11
12
13
Kodasalli Dam
Gerusoppa/STRP
Almatti
Shiva
Shimsa
Munirabad
MGHE-Jog
Total of KPCL Hydel
MYT for 3 rd control period (FY14 – FY16)
372.48
442.62
384.00
249.48
64.69
118.00
327.72
521.99
531.36
238.10
41.58
98.87
236.76
11461.99
295.02
502.92
548.46
303.93
67.32
70.29
301.92
11006.62
295.02
502.92
548.46
303.93
67.32
70.29
301.92
11006.62
The availability of KPCL Thermal generation @ ex-bus is as shown in Table
Energy in MU
Sl no Generating Station
1
2
3
4
5
6
7
8
RTPS unit I &7
RTPS Unit 8
BTPS Unit 1
BTPS Unit 2
BTPS Unit -3
Diesel Plant Yelahanka
Yermarus TPS Unit -1 &2
Bidadi CCCP
Total KPCL thermal
2013-14
2014-15
8348.34
1516.16
3283.75
3219.00
9418.50
1603.08
3225.48
3225.48
2015-16
9418.50
1603.08
3225.48
3225.48
4421.76
447.90
447.90
1380.67
9741.41
3567.66
19301.11 35651.27
35.34
16402.59
HYDEL
The tariff rates are worked out based on KERC order dated 03.08.2009 for hydel
stations except for Shivasamudram, Shimsha, Munirabad & MGHE. The tariff for the
hydel stations is based on the design energy of the station and incentive is
considered for over and above the design energy. A rate of 15 paise per kwh or 3%
of the ROE whichever is less has been considered as per PPA for the energy over and
above the design energy. The average cost paise per unit including primary and
secondary energy charges furnished by the KPCL is as shown in the Table
Rate paise per unit
Sl no Generating Station
1
2
3
4
Chapter 8 – ARR for FY14 to FY16
Sharavathy valley project
Kali Valley projects
Varahi Valley projects
Bhadra & Bhadra Right Bank
2013-14
24.43
45.96
76.63
243.23
2014-15 2015-16
26.24
51.99
80.38
303.83
27.15
53.98
83.36
319.65
Page 141
Bangalore Electricity Supply Company Limited
5
6
7
8
9
10
11
12
13
14
MYT for 3 rd control period (FY14 – FY16)
Ghataprabha(GDPH)
Kadra Dam
Kodasalli Dam
Gerusoppa/STRP
Almatti
Shiva
Shimsa
Munirabad
MGHE-Jog
Varahi Unit 3 & 4
Average cost
85.48
156.97
122.06
112.68
157.95
83.63
91.39
48.67
69.86
35.26
59.12
90.65
177.54
138.53
118.26
149.34
68.85
94.40
69.68
57.33
33.81
62.85
93.61
182.03
142.33
120.61
125.95
71.48
97.60
72.67
59.12
31.91
63.26
Paise 4 per unit as royalty charges is considered for the actual generation
KPCL Thermal
The tariff rates worked out based on KERC order dated 03.08.2009 for thermal
stations 1 to 7 is at 72% PLF. The PLF for DG plant Yelahanka is considered at
72.5%. The PLF for unit 1 & 2 of BTPS is considered @ 80 %. The average rate per
unit including Capacity and energy charges for thermal station including DG plant &
Bidadi CCCP has been furnished by KPCL. The variable cost /energy charges is
escalated at 2.5% each year. The year wise rate is shown in Table
Rate paise per unit
Sl no
1
2
3
4
5
6
7
8
Generating Station
RTPS unit I &7
RTPS Unit 8
BTPS Unit 1
BTPS Unit 2
BTPS Unit -3
Diesel Plant Yelahanka
Yermarus TPS Unit -1 &2
Bidadi CCCP
Average cost
2013-14 2014-15
355.69
373.78
315.51
346.26
360.10
379.91
315.01
314.65
1433.16
1297.64
450.34
349.79
374.83
2015-16
369.29
386.64
315.64
313.93
360.74
1331.52
418.93
668.00
414.69
Central Generating Station
ESCOMs have a share in NTPC Southern Region station of Ramagundam, Talcher
Phase II, Neyveli Lignite Corporation, Kaiga Atomic Power Station , Madras Atomic
Power Station and Simhadri Unit-II.
Chapter 8 – ARR for FY14 to FY16
Page 142
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
The energy available to KPTCL depends on the scheduled generation and share in
the station in a month. The available energy for Central Generating Stations as
furnished in LGBR for the year 2011-12 has been taken into consideration for 201314 to 2015-16.
The Karnataka share in existing Central generating stations is based on allocation
made for the month of October 2012 ( including unallocated share) and other new
units are based on MoP, GoI notification, the allocation percentage of existing CGS
is shown in Table.
Central generation Stations
Capacity in
MW
% allocation to
Karnataka State
2100
19.61
500
20.48
1800
18.67
NLC TPS2-Stage 1
630
20.7
NLC TPS2-Stage 2
840
20.95
NLC TPS1-Expn
420
25.59
MAPS
440
7.48
Kaiga unit I &II
440
27.82
Kaiga Unit 3 &4
440
30.32
1000
20.79
N.T.P.C-Ramagundam
NTPC-VII
NTPC-Talcher
Simhadri Unit -1 &2
The Kudamkulam Nuclear power projects , NLC expansion Unit 1 & 2 and Vallur JV
projects Unit 1 & 2 is expected to commission during 2013-14 and Vallur JV unit 3
and Tuticorin Unit 1 &2 is expected to commission during 2014-15. The share of
Karnataka in these projects are shown in Table
Chapter 8 – ARR for FY14 to FY16
Page 143
Bangalore Electricity Supply Company Limited
Generating Stations
NLC Expansion Stage-2 Unit1&2
KudamKulam Unit 1&2
Vallur TPS Unit-1,2 & 3
Tuticorin Unit 1 &2
MYT for 3 rd control period (FY14 – FY16)
Total installed
capacity of the
Generating unit
500
Karnataka share in
the project (in %)
2000
1500
1000
26.00
8.03
15.80
25.88
The availability of energy for the above projects to be commissioned is based on
normative availability factors as per CERC 2009 regulation ie Vallur JV - 85%,
Kudamkulam Nuclear power project 68.5%, NLC expansion stage -2-80% and
Tuticorion-85%.
The availability of energy is considered for the initial 3 to 4 months @ 70% PLF for
new projects since plant requires time for stabilization.
Point of connection losses applicable for injection generation stations/states for the
week 5.11.2012 to 11.11.2012 is considered to arrive at energy @ KPTCL periphery,
the POC losses considered for availability of energy is shown in Table.
Generating Station
Injection State/generating
station in %
Withdrawal state
losses in %
N.T.P.C-Ramagundam
2.21
1.91
NTPC-VII
2.21
1.91
NTPC-Talcher
2.51
1.91
NLC TPS2-Stage 1
1.91
1.91
NLC TPS2-Stage 2
1.91
1.91
MAPS
2.51
1.91
Kaiga unit I &II
1.91
1.91
Kaiga Unit 3 &4
1.91
1.91
Simhadri Unit -1 &2
2.51
1.91
NLC expansion Stage
2.51
1.91
II unit 1&2
Vallur Unit 1,2&3
2.51
1.91
Kudamkulam
2.51
1.91
Tuticorin
2.51
1.91
The availability of energy @ KPTCL periphery after deducting the applicable losses
in respect of central generating stations for the period 2013-14 to 2015-16 is shown
in Table
Chapter 8 – ARR for FY14 to FY16
Page 144
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Energy in MUs
2013-14
2014-15
2015-16
2865.20
2865.20
2865.20
685.84
685.84
685.84
2510.23
2510.23
2510.23
NLC TPS2-Stage 1
658.12
658.12
658.12
NLC TPS2-Stage 2
937.15
937.15
937.15
NLC TPS1-Expn
654.27
654.27
654.27
MAPS
192.21
192.21
192.21
Kaiga unit I &II
755.30
755.30
755.30
Kaiga Unit 3 &4
675.44
675.44
675.44
Simhadri Unit -1 &2
NLC expansion Stage II unit
1&2
Vallur Unit 1,2&3
1458.87
1458.87
1458.87
758.42
782.87
782.87
632.36
801.91
801.91
Kudamkulam
1994.80
1994.80
1994.80
38.47
706.84
1051.91
Central generation Stations
N.T.P.C-Ramagundam
NTPC-VII
NTPC-Talcher
Tuticorin
Total
14814.99 15679.05 16024.12
The present tariff regulation 2009 of CERC is applicable for the period from 1st April
2009 to 31st March 2014. The capacity charges as determined by the CERC for
existing station for the year 2013-14 is considered for 2014-15 & 2015-16 also.
The new PoC regulation came into effect from 1st July 2011. The POC rates (Rs /MW)
for different Demand & Generation Zones are being computed from time to time on
half year basis as per prevailing CERC regulations. Further, PoC charges for future
period will depend on the quantum of approved injection/approved drawl.
The PoC transmission charges for the period 2012-13 (April-2012 to September 2012) is escalated based on quantum of energy allocated from different generating
stations during each year, which is shown in Table
Chapter 8 – ARR for FY14 to FY16
Page 145
Bangalore Electricity Supply Company Limited
Year
2013-14
2014-15
2015-16
MYT for 3 rd control period (FY14 – FY16)
Transmission charges in Rs
crore
486.87
502.99
502.99
Capacity charges determined by CERC for the year 2013-14 in respect of existing
CGS units is considered till 2015-16 without escalation since interest on loan and
repayment of loan will be reduced. The variable charges for the period April-2012 to
September -2012 is considered for 2013-14 with escalation of 2.5% every year.
The Tariff fixed by CERC has been considered for existing stations and tariff
proposed before CERC for determination of tariff in respect of new stations has been
taken. In case a petition is not filed for determination of tariff by generating stations,
for such projects provisional tariff as indicated by the Generating Stations is
considered.
The Central Electricity Regulatory Commission (CERC) has issued Order in petition
No. 94/2010 on 17.03.2011, filed by PGCIL on behalf of Power System Operation
Corporation Limited (POSOCO) for approval of charges of SRLDC for the control
period from 01.04.2009 to 31.03.2014 U/S 4 of Section 28 of Electricity Act 2003.
The payments are to be made as per CERC order dated 17th March 2011 and
allocation among the beneficiary depends upon the allocation of capacity. The
POSOCO charges payable by ESCOMs to SRLDC for the year 2013-14, 2014-15 and
2015-16 is Rs 3.60, 3.69 & 3.88 crore respectively.
The average cost including capacity, energy charges and income tax in respect of
central generating stations for the period 2013-14 to 2015-16 is shown in Table.
Chapter 8 – ARR for FY14 to FY16
Page 146
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Paise per unit
2013-14
2014-15
2015-16
N.T.P.C-Ramagundam
223.05
227.14
231.33
NTPC-VII
300.27
305.27
310.39
NTPC-Talcher
247.06
251.18
255.41
NLC TPS2-Stage 1
274.51
279.74
285.09
NLC TPS2-Stage 2
274.46
279.69
285.04
NLC TPS1-Expn
330.08
334.78
339.61
MAPS
229.07
234.53
240.13
Kaiga unit I &II
331.80
339.89
348.19
Kaiga Unit 3 &4
332.74
340.83
349.13
Simhadri Unit -1 &2
NLC expansion Stage II unit
1&2
Vallur Unit 1,2&3
369.08
374.08
379.19
392.14
399.49
409.48
464.56
463.14
470.22
Kudamkulam
422.90
432.05
441.42
Tuticorin
366.00
375.15
384.53
Average Cost
345.31
354.13
360.86
Central generation Stations
Independent Power Producers
UPCL
M/s Udupi Power Corporation Limited declared commercial operation of first unit-I
on 11th November 2010 and the second unit on 19th August 2012.
The availability of energy from UPCL is considered at 85% of the installed capacity
(90% of 1200 MW) minus auxiliary consumption of 7.5%. The UPCL has entered
into PPA with PSPCL for sale of its 10% installed capacity.
The availability of energy from UPCL is shown in Table
Year
2013-14
2014-15
2015-16
Chapter 8 – ARR for FY14 to FY16
Energy in MU
7438.55
7438.55
7438.55
Page 147
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
The tariff of Rs 3.127 per unit is provisionally considered for the years 2013-14 to
2016-17 as interim tariff for the power supplied by M/s Udupi Power Corporation
Limited subject to final adjustment after determination of tariff by CERC. The tariff
of Rs 3.127 per unit comprises Rs 1.1515 towards capacity charges and Rs 1.9755
towards energy cost which is being contested.
Non conventional Energy Source.
The actual generation of Bio-mass, Co-generation, Mini-Hydel, Wind, Solar and
captive power projects for the year 2011-12 have been considered for 2013-14 to
2015-16.
In case of new NCE projects, the details furnished by KREDL are likely to be
commissioned from 2013-14 to 2015-16 is considered. However, in respect of wind
projects, only 33% of the projected capacity by KREDL has been considered in each
year based on previous year’s data.
These projects are allocated to ESCOMs based on the geographical location of the
project.
The availability of energy in respect of new NCE projects like solar power, Wind
Mills, & Mini Hydel is
based on KERC tariff regulation .(Solar PV-19%, Solar
Thermal-23%, Wind Mills -26.5% & mini Hydel-30%).
Wind projects of Madurgudda and Guledagudda of NTPC stations are likely to
commission during 2014-15.
The PLF for the above NTPC stations is considered @ 23% as per CERC regulation.
KREDL invited bid for 80 MW solar powers, based on rates obtained in competitive
bid, 70 MW solar power projects allotted to ESCOMs. The PLF for these projects are
taken as per KERC regulation.
Chapter 8 – ARR for FY14 to FY16
Page 148
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
The above solar projects are likely to be commissioned during January 2014 and
2015.
The ESCOM wise NCE energy projected for FY 2013-14 to 2015-16 is as shown in
Table
Existing projects
Source
Co-generation
Bio-mass
Mini Hydel
Windmill
KPCL wind mill
KPCL solar
Captive
Total
Energy in MU
BESCOM GESCOM HESCOM MESCOM
96.96
63.36
591.55
2208.46
13.51
4.66
2978.49
21.40
103.07
146.95
130.36
187.86
0.00
55.17
479.06
3.52
139.77
545.07
3.52
New projects- 2013-14
Source
Co-generation
Bio-mass
Mini Hydel
Windmill
NTPC wind
KPCL solar
Captive
Total
725.61
Co-generation
Bio-mass
Mini Hydel
Wind Mill
Waste Energy
Solar
NTPC wind
Total
Chapter 8 – ARR for FY14 to FY16
5.94
5.65
604.65
BESCOM GESCOM HESCOM MESCOM
0.00
0.00
0.00
70.83
21.02
9.44
0.00
101.29
BESCOM
0.00
0.00
6.50
128.94
21.02
38.28
147.79
342.54
149.10
1.92
369.78
186.39
713.13
Energy in MU
1.27
6.54
0.00
106.64
4.10
4.10
0.00
110.74
11.92
New projects-2014-15
Source
0.00
0.00
363.34
235.67
CESC
CESC
0.00 0.00
0.00 0.00
61.40 77.60
46.97 0.00
0.00
2.87 4.10
0.00 0.00
111.24 81.70
Energy in MU
GESCOM HESCOM MESCOM
32.98
42.48
7.81
261.37
0.00
0.00
166.38
67.66
21.61
39.49
136.56
16.64
54.15
339.97
11.65
24.81
270.50
CESC
0.00
0.00
166.25
0.00
0.00
16.64
31.60
214.49
Page 149
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
New projects-2015-16
Source
Energy in MU
BESCOM GESCOM
Co-generation
Bio-mass
Mini Hydel
Wind Mill
Waste Energy
Solar
NTPC wind
Total
0.00
0.00
14.76
175.24
21.02
38.28
147.79
397.09
HESCOM MESCOM
86.64
126.92
23.42
426.29
0.00
0.00
248.73
72.28
36.79
39.49
289.85
16.64
54.15
520.50
11.65
24.81
357.47
CESC
0.00
0.00
203.65
0.00
0.00
16.64
31.60
251.89
The existing NCE projects except Bio-mass, & wind mills are escalated @ 2.5% on
each year. No escalation is considered for bio-mass projects since Bio-mass projects
have completed 10 year tariff period. In respect of wind mill projects, tariff is
constant for 10 year, hence no escalation is considered.
In respect of new NCE projects the cost per unit is based on KERC tariff regulation
2009 applicable for 2010 to 2015 thereafter escalated @ 10%.
For solar projects, tariff obtained by KREDL through competitive bidding is
considered.
Jurala
The 50% of the energy from Jurala Hydro electric Projects( 117 MW) is expected
during 2013-14 onwards. The expected energy from the project is indicated in Table
Year
2013-14
2014-15
2015-16
Energy in MUs
240
240
240
Paise per unit
246
252.15
258.45
The energy from T. B. Dam is shared between AP and Karnataka. The Karnataka
share in this scheme is 1/5th of the total generation. The availability of energy from
TB Dam is based on the FY 11-12, which is estimated @ 36 MU per year and 1/5th
share of revenue expenditure is Rs 177 lakhs with escalation of 2.5% on 2014-15 &
2015-16.
Chapter 8 – ARR for FY14 to FY16
Page 150
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Medium Term Power procurement
The LOIs was placed for 1280 MW for procurement of RTC firm power for the
period from 1st September 2011 to 15th June 2013 under Case-1 bidding
procedure. The tariff at KPTCL periphery ranged between Rs 4.10 per Kwh and
Rs 4.51 per Kwh. The energy availability from medium term source from April-2013
to 15th June-2013 is indicated in Table
Source
Energy
availability
JSWPTC
Rate @ generation
Bus in Paise per unit
Average rate
paise/unit
GUVNL
NETS-Balco
775.20
745.66
149.13
426.00
410.00
375.00
426.00
426.24
389.85
NETS-CSPDL
371.67
392.00
408.80
BMM Ispat
111.38
410.00
410.00
Transmission
charges
Rs 34.88
The shortage in availability of power shall be made good under procurement of
power through medium term/short term. The tariff of such procurement is
considered at Rs 4.40 per Unit for FY-14 and Rs.5.00 per Unit for FY-15 and FY-16.
Transmission charges:
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. For the 3rd control period,
Chapter 8 – ARR for FY14 to FY16
Page 151
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
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-16 :
Year
Cost in Rs. Crs.
FY-14
1316.44
FY-15
FY-16
1338.01 1522.06
8.2 Sales and Distribution Loss for FY-13 and 3rd control period
(FY-14 to FY-16):
The Commission, in its Tariff Order dated 30.04.2012, had approved sales of
25856 MU. For computing sales for FY-13, half yearly (from Apr-12 to Sept-12)
figures are considered. For the remaining period of FY 13, the energy sales are
estimated based on the monthly growth rate of FY-12 over FY-11. For the 3rd control
period from FY-14 to FY-16, 4 year CAGR growth rate is considered for metered
sales and specific consumption is considered for unmetered sales. The details of
energy in MU and distribution loss in percentage for the 3rd control period are
shown in the table below:
Particulars
Total energy sales projected
FY-13
23142
FY-14
25387
FY-15
27751
FY-16
30220
0
300
800
Total Projected Sales including
missing hours in MU
25387
28051
31020
Sales growth rate projected
in MU
Distribution Loss In %
Energy at IF Points in MU
Transmission Loss in %
Energy at Gen. Points in MU
14.00
26909
3.96
28018
9.70%
13.80
29452
3.94
30660
10.49% 10.58%
13.60
13.40
32467
35820
3.92
3.90
33791
37273
Energy Input growth rate in
percentage
Average MW Requirement
3198
9.4%
3500
10.2%
3857
10.3%
4255
Peak MW requirement at LF of
80%
3998
4375
4822
5319
Energy not supplied due to
missing hours in MU
Chapter 8 – ARR for FY14 to FY16
Page 152
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
8.3 Capex:
For FY-13, the Commission has approved a Capex of Rs. 510 Crs. Actual as at the end
of Sept-12 is shown in the table below:
Sl.
No. Schemes
1
11KV Lines for New Stations
11 KV Other Works+DTCs including dedicated DTC for DWS
2
Schemes.
Re-conduct ring of ACSR/Rabbit to Coyote in Bangalore
3
Urban
4
Re-conducturing of LT line using Rabbit conductor
Re-conducturing (Improvement works on 11KV Rural
5
Feeders)
6
Strengthening of 11KV UG cable Network with RMUs
7
NJY
8
Providing infrastructure to unauthorized IP Sets
9
Metering Programme
Metering of BJ/KJ, IP sets & Street lights (Unmetered
10 category)
11 RAPDRP & DAS
12 Service connections
13 Replacement of Failed DTCs by new ones
14 Civil engineering works, DSM & Others
15 RE Works (General )
16 Electrification Hamlets/Villages
17 Electrification of IP sets
18 Kuteer Jyothi
19 SCP
20 Electrification Hamlets/HBs/Jcs/Thandas
21 Electrification of IP sets
22 Kuteer Jyothi
23 TSP
24 Electrification of Tribal Colony
25 Electrification of IP sets
26 Kuteer Jyothi
27 T&P and Computers
Other works including Safety measures fund, Local planning,
28 Formation of ALDC, Spill over works etc.
29 Providing AB Cable
Total
Chapter 8 – ARR for FY14 to FY16
Rs.in
Crores
73.04
17.81
2.19
0.05
70.22
22.58
45.8
1.15
8.31
7.26
248.41
Page 153
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Detailed Capital Investment Plan for the control period (FY-14 to FY-16) is
illustrated at Chapter 5.
The table depicting perspective plan for capital investments totaling to Rs.2932.00
Crore for the period from 2013-14 to 2017-18 Year on year, scheme wise proposed
investment is furnished below:
Sl.
No
1
A
B
C
D
E
F
2
3
4
Schemes
2013-14
Non
Plan
Plan
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 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
Mechanical Meter
By Electrostatic.
( C ) Smart Meter,
HT- TOD Meter
Replacing MNR
etc .
Chapter 8 – ARR for FY14 to FY16
2014-15
Non
Plan
Plan
2015-16
Non
Plan
Plan
Rs. in Crore
2016-17
Non
Plan
Plan
2017-18
Non
Plan
Plan
20.00
50.00
80.00
80.00
80.00
15.00
40.00
70.00
70.00
70.00
10.00
10.00
30.00
30.00
30.00
5.00
5.00
20.00
20.00
20.00
10.00
20.00
20.00
20.00
20.00
10.00
370.00
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
40.00
30.00
30.00
30.00
Page 154
Bangalore Electricity Supply Company Limited
5
6
7
8
9
10
11
12
13
14
15
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
150.00
25.00
140.00
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
31.00
MYT for 3 rd control period (FY14 – FY16)
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
20.00
20.00
20.00
20.00
30.00
817.00
848.00
90.00
732.00
763.00
120.00
597.00
627.00
100.00
572.00
602.00
110.00
582.00
612.00
31.00
30.00
30.00
30.00
8.4 Operation and Maintenance expenses:
The norms prescribed by the Commission in its MYT regulations-2006 are:
“2.5.1 a) The Operation and Maintenance (O&M) costs which include employeerelated costs, repairs & maintenance costs and administrative & general costs,
estimated for the Base Year and the actual for the previous two years prior to the Base
Year in complete detail, together with the forecast for each year of the Control Period
based on the norms proposed by the Distribution Licensee including indexation and
other appropriate mechanisms; “
“3.10 Operation and Maintenance expenses: ‘the Licensee in its filings shall submit
the consolidated O&M expenses for the Base Year of the Control Period and for the two
years preceding the Base Year. The O&M expenses for the Base Year shall be
determined based on latest audited accounts, best estimates of Licensee of the actual
Chapter 8 – ARR for FY14 to FY16
Page 155
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
O&M expenses for relevant years and other factors considered relevant. The O&M
expenses for the Base Year, if required, will be used for projecting the expenses for each
year of the control period. The Licensee shall also propose appropriate Inflation Factor
Norms for operation and maintenance expenses for the first control period’
The Commission in its Tariff Order dated 11.01.2008 approved the following
formula for approval of O&M expenses.
O&M Cost t = O&M Cost t-1 * (1 + WII + CGI – X)
Where,
‘O&M Cost t’
is the normative O&M cost approved by the Commission for the
financial year
‘WII’ is the weighted inflation index of CPI and WPI (CPI 70% WPI 30%) based on
the contribution of employee cost, R&M and A&G towards the total O&M cost
‘CGI’ is the Consumer growth index, which is linked to increase (CAGR) in no of
consumers.
‘X’ is the efficiency factor. For BESCOM the Commission fixes the same as 1%
As per the above norms, BASE YEAR means, the financial year immediately
preceding the first year of the Control Period. Hence FY-13 is considered as base
year for the 3rd control period. FY-11 and FY-12 is considered as two years
preceding the Base year.
Actual Operation and Maintenance expenses (O&M) expenses for the years
preceding the base year as per annual accounts are as under:
Sl.
No.
Particulars
1
R&M Expenses
2
Employee cost
3
Administrative & General Expenses
O&M Cost in Rs. Crs.
FY-11
30.68
542.00
60.94
650.88
FY-12
32.46
649.89
81.75
764.10
It is to state that the Commission in its Tariff Order 2011 has approved the O&M
expenses for FY-13. Accordingly, the total approved O&M expenses for FY13 is as
follows:
Chapter 8 – ARR for FY14 to FY16
Page 156
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Total approved O&M Expenses for FY13
Rs. in Crore
Particulars
Normative O&M expenses
Additional O&M expenses (uncontrollable)
Total approved O&M expenses
FY13
693.35
129.45
822.80
As of now, the half yearly O&M figures for FY-13 as on Sept-12 are available.
Sl.
No.
Particulars
1
R&M Expenses
2
Employee cost
3
Administrative & General Expenses
O&M Cost in Rs. Crs.
FY-13
(As on 30.09.2012)
10.10
389.17
45.48
444.75
It is to state that the O&M expenses for FY-13 have been computed based on the
following:

Increase in Employee cost over and above the approved cost is due to merger of
76.75% of Dearness Allowance as Dearness Pay as per the Government Order
NO. FD 7 SPR 2012 dated 21st April’2012.

Dearness Pay is considered as Basic Pay, hence consequential such as House
Rent Allowance, Travel Allowance, DCRG and other Basic pay related allowance
will be increased.

Month wise breakup of cost booked is shown below. Since the cost increased is
due to the said Government Order, we request the Commission to allow the
Employees cost in full.
Sl.
No.
Particulars
1
R&M Expenses
2
Employee cost
3
A&G Expenses
O&M Cost in Rs. Crs.
Apr’12
1.37
51.53
5.99
58.89
May’12
0.02
52.83
15.12
67.97
Jun’12
0.64
65.77
5.60
72.01
July’12
0.88
82.62
4.58
88.08
Aug’12
3.05
56.44
6.62
66.11
Sep’12
4.14
79.98
7.57
91.69
Estimation Total O&M
of Second
Cost for
half year
FY-13
20.00
30.10
480.00
870.17
46.00
91.98
546.00
992.25
Hence, for the base year FY-13, O&M expenses of Rs. 992.25 Crs. is considered for
computation of O&M cost for the 3rd control period ie., FY-14 to FY-16. For projecting
Chapter 8 – ARR for FY14 to FY16
Page 157
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
the O&M expenditure for the control period, the Commission approved formula is
considered.
O&M Cost t = O&M Cost t-1 * (1 + WII + CGI – X)
Where,
‘O&M Cost t’ is the normative O&M cost or each year of the control period
‘WII’ is the weighted inflation index of CPI and WPI at 70:30
‘CGI’ is the Consumer growth index, which is linked to increase (CAGR) in no of
consumers from 2008 to 2016
‘X’ is the efficiency factor. For BESCOM the Commission fixes the same as 1%
Calculation for WII ie., weighted inflation index: Consumer Price Index and Whole
sale Price Index applicable to industrial consumers considering the Base 2001=100.
Composite series are worked out taking 70 % of CPI and 30% of WPI. Annual
escalation rate is worked out for the composite series. Estimation for 2013 to 2016
is on moving average of 4 years.
Year
WPI
1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2
81.59
85.8
87.92
92.6
98.72
103.37
109.59
114.94
124.92
127.86
140.08
157.30
173.14
185.20
199.53
214.39
228.66
Chapter 8 – ARR for FY14 to FY16
CPI
3
95
99
103
107
111
116
123
131
142
157
176
197
216
235
254
274
293
30% of WPI
70%of CPI
4=30% of (2)
24.477
25.74
26.376
27.78
29.616
31.011
32.877
34.482
37.476
38.358
42.024
47.19
51.94
55.56
59.86
64.32
68.60
5=70% of (3)
66.5
69.3
72.1
74.9
77.7
81.2
86.1
91.7
99.4
109.9
123.2
137.9
151.3
164.3
177.9
191.6
205.0
Composite
series
6=(4+5)
91.0
95.0
98.5
102.7
107.3
112.2
119.0
126.2
136.9
148.3
165.2
185.1
203.3
219.9
237.8
255.9
273.6
Annual
Escalation rate
in Percentage
7
4.47%
3.62%
4.27%
4.51%
4.56%
6.03%
6.06%
8.48%
8.32%
11.44%
12.02%
9.83%
8.17%
8.14%
7.63%
6.92%
Page 158
Bangalore Electricity Supply Company Limited
*Note:
MYT for 3 rd control period (FY14 – FY16)
WPI and CPI figures upto 2012 is as per CERC Notification dt.02.04.2012
Estimation for 2013 to 2016 is on moving average of 4 years.
Thus, Weighted Inflation index for the control period FY-14 to FY-16 is considered
as 8.14%, 7.63% and 6.92% respectively.
Consumer growth index: Consumer growth rate is estimated based on the CAGR as
stated in the sales forecast.
Particulars
Consumer growth rate (CAGR years)
FY-14 FY-15
FY-16
6.37% 6.46% 6.57%
By considering these inputs, O&M Cost for the 3rd control period is under.
‘O&M Cost t’
O&M Cost t-1
WII
O&M cost of the Financial year
O&M Cost of the previous year
Weighted inflation index of CP and WPI
FY-14
992.25
8.14%
FY-15
1126.3
7.63%
FY-16
1273.7
6.92%
CGI
Consumer growth index linked to CAGR
6.37%
6.46%
6.57%
Efficiency factor of BESCOM
1.00%
1.00%
1.00%
1126.3 1273.7
1432.8
X
O&M Cost in Rs. Crs.
In order to ensure quality service and to cope with the increasing consumers in
BESCOM, new works force needs to be added which will result in increase in
employees cost.
As the second phase of reforms are started, Central/State
Government may initiate new reforms process that may result in increase in the
employees cost. It is prayed before the Commission to allow the expenses that may
arise on account of new recruitment and further reform process.
Since the Employee cost works out to 85% of O&M cost, R&M and A&G expenditure
is apportioned at the rate of 5% and 10% respectively.
Sl. Particulars
No.
1
R&M Expenses
2
Employee cost
3
A&G Expenses
Total
Chapter 8 – ARR for FY14 to FY16
FY-12
FY-13
FY-14
FY-15
FY-16
32.5
30.1
56.3
63.7
71.6
690.7 870.17
957.4 1082.7 1217.9
80.5
91.98
112.6
127.4
143.3
803.6 992.25 1126.3 1273.7 1432.8
Page 159
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
O&M cost is segregated in to Wire and Supply business as under.
Sl. Particulars
No.
1
2
3
Repair and Maintenance
Employee Cost
Administration and General
Expenses
Wire business
Retail
Total
Supply
11 KV
Lines
LT lines
37%
25%
38%
100%
26%
26%
48%
100%
41%
21%
38%
100%
Consequently, the allocated cost for the 3rd control period is as follows:
(Rs. In Crore)
Particulars
Repair and
Maintenance Cost
Employee Cost
Administration
and General
Expenses
FY-12
FY-13
FY-14
FY-15
FY-16
Distribution Wire Business
20.13
18.66
34.92
39.49
44.42
Retail Supply Business
12.33
11.44
21.40
24.20
27.22
Distribution Wire Business
359.14
452.49
497.83
562.99
633.31
Retail Supply Business
331.52
417.68
459.53
519.68
584.59
Distribution Wire Business
49.89
57.03
69.83
78.97
88.84
Retail Supply Business
30.57
34.95
42.80
48.40
54.45
8.5 Depreciation:
The norms prescribed by the Commission in its MYT regulations-2006 are:
3.8.1 Depreciation shall be computed in the following manner, namely:
i) The value base for the purpose of depreciation shall be the historical cost of the
asset.
ii) Depreciation shall be calculated annually based on straight-line method over the
useful life of the asset and at the rates prescribed in Appendix-1 to these
Regulations.
iii) The residual life of the asset shall be considered as 10% and depreciation shall
be allowed up to maximum of 90% of the historical capital cost of the asset.
Chapter 8 – ARR for FY14 to FY16
Page 160
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Land is not a depreciable asset and its cost shall be excluded from the capital
cost while computing 90% of the historical cost of the asset.
3.8.2 Depreciation shall be chargeable from the first year of operation. In case of
operation of the asset for part of the year, depreciation shall be charged on
pro rata basis.
3.8.3 The above said rate of depreciation shall be applicable both for the purpose of
tariff as well as accounting.
3.8.3 The Commission may consider allowing ‘advance against depreciation’ to the
extent of difference between the amount of depreciation computed and the
debt repayment for the financial year.
3.8.4 Benefit of reduced tariff after the assets have been fully depreciated should
remain available to the consumers.
As per the Section 61 of Electricity Act as well as
the
preamble set by the
Commission in its MYT regulations-2006, it is stated that the terms and conditions
for determination of tariff shall subject to the provisions of the Act, and shall be
guided by factors from (a) to (i) specified therein.
As per the factors specified by the under Section 61 Electricity Act 2003,
‘ The Appropriate Commission shall, subject to the provisions of this Act, specify the
terms and conditions for the determination of tariff, and in doing so, shall be guided
by the following, namely:(a)
the principles and methodologies specified by the Central Commission for
determination of the tariff applicable to generating companies and transmission
licensees;
(b)
(c)
……………….
……………..’
Thus, the Principles and methodologies specified by the Central Commission for
determination of the tariff applicable to generating companies and transmission
licensee is the guiding factors for determination of tariff by the State Commission.
Chapter 8 – ARR for FY14 to FY16
Page 161
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Central Electricity Regulatory Commission (CERC) in its notification dated 19th
January 2009 issued terms and conditions of tariff.
The Computation of
depreciation as per these regulations is:
Depreciation
(1) The value base for the purpose of depreciation shall be the capital cost of the
asset admitted by the Commission.
(2) The salvage value of the asset shall be considered as 10% and depreciation shall
be allowed up to maximum of 90% of the capital cost of the asset.
Provided that in case of hydro generating stations, the salvage value shall be as
provided in the agreement signed by the developers with the State Government
for creation of the site: Provided further that the capital cost of the assets of the
hydro generating station for the purpose of computation of depreciable value
shall correspond to the percentage of sale of electricity under long-term power
purchase agreement at regulated tariff.
(3) Land other than the land held under lease and the land for reservoir in case of
hydro generating station shall not be a depreciable asset and its cost shall be
excluded from the capital cost while computing depreciable value of the asset.
(4) Depreciation shall be calculated annually based on Straight Line Method and at
rates specified in Appendix-III to these regulations for the assets of the
generating station and Transmission system:
Provided that, the remaining depreciable value as on 31st March of the year
closing after a period of 12 years from date of commercial operation shall be
spread over the balance useful life of the assets.
Chapter 8 – ARR for FY14 to FY16
Page 162
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
(5) In case of the existing projects, the balance depreciable value as on 1.4.2009
shall be worked out by deducting the cumulative depreciation as admitted by
the Commission upto 31.3.2009 from the gross depreciable value of the assets.
(6) Depreciation shall be chargeable from the first year of commercial operation. In
case of commercial operation of the asset for part of the year, depreciation shall
be charged on pro rata basis.
For the purpose of projections of depreciation for the 3rd control period,
depreciation rate prescribed under Annexure-III of CERC Notification issued
dated 19th January, 2009 is considered.
For the purpose of projected depreciation computation for the 3rd control period
following assumptions are considered:
1. Actual closing Gross Fixed Assets (GFA) of FY-12 as per provisional accounts
of FY-12
2. Estimated Additions and Retirement of assets for FY-13 are based on the
accounts available upto 30.09.2012 and estimation for the next half year.
3. 75% of the capex envisaged during each year of the Control period is booked
on that year and 90% of the booked cost will be capitalized
4. Capital work in progress at the end of previous year will be categorized in
the succeeding year of the Control period
5. Depreciation rates as specified by the CERC is applied on the 90% of the
Closing Gross fixed Asset of each year of the control period.
6. Deduction of Depreciation withdrawn from contribution /subsidies as per
Accounting Standard-12 is considered at the amount equal to actual of FY-12
for each year of the control period.
Gross fixed assets at the beginning year of year addition and released during FY-12
and half yearly figures of FY-13 as on 30.09.2012 is as under.
Chapter 8 – ARR for FY14 to FY16
Page 163
Bangalore Electricity Supply Company Limited
Particulars
Opening Gross Fixed Asset (GFA)
Add: Additions during the year
Less: Retirement
Closing GFA
MYT for 3 rd control period (FY14 – FY16)
FY-12
1st Half yearly Estimation
accounts
for 2nd
of FY-13 as
Half year
on
of FY-13
30.09.2012
4122.08
4331
4611
333.24
280
405
124.32
100
4331
4611
4916
Total of
FY-13
4331
685
100
4916
Depreciation for FY-13 based on half yearly details
Particulars
Opening Gross Fixed Asset (GFA)
FY-13
4331.00
Add: Additions during the year
685.00
Less: Retirement
100.00
Closing GFA
4916.00
90% of GFA
4424.40
Average Dep. Rate ( In %)
4.58%
Depreciation
Less: Depreciation with drawn from Consumer
contribution/subsidies plus withdrawal of depreciation
Depreciation charged to the Tariff
202.64
76.00
126.64
Capital Expenditure ( Capex) envisaged for each year of the Control period.
Particulars
FY-14
FY-15
FY-16
Capital Expenditure (Capex)
envisaged
Estimated Booking Cost at
(75% of the capex envisaged)
Assets categorized ( 90% of
booking Cost)
848.00
763.00
627.00
636.00
572.25
470.25
572.40
515.03
423.23
Depreciation envisaged for each year of the Control period
Chapter 8 – ARR for FY14 to FY16
Page 164
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Particulars
Opening Gross Fixed Asset (GFA)
FY-14
4916
FY-15
5378.40
FY-16
5773.43
572.4
515.03
423.23
110
120.00
130.00
Closing GFA
5378.4
5773.43
6066.65
90% of GFA
4840.56
5196.08
5459.99
Average Dep. Rate ( In %)
4.58%
0.05
0.05
Depreciation
221.70
237.98
250.07
78.00
80.00
83.00
143.70
157.98
167.07
Add: Additions during the year
Less: Retirement
Less: Depreciation with drawn from
Consumer
contribution/subsidies
plus withdrawal of depreciation
Depreciation charged to the Tariff
Depreciation is segregated in to Wire and Supply business as under.
Particulars
Depreciation
Wire business
11 KV Lines
LT Lines
53%
18%
Retail
Supply
29%
Total
100%
Consequently, the allocated cost for the 3rd control period is as follows:
(Rs. In Crore)
Particulars
Depreciation
Distribution
Wire
Business
Retail Supply
Business
FY-12
FY-13
FY-14
FY-15
FY-16
88.46
89.91
102.03
112.17
118.62
36.13
36.72
41.67
45.81
48.45
8.6 Interest and finance charges:
Interest and finance charges includes following costs.

Interest on loan capital

Interest on Working Capital

Interest payable in consumer Security Deposit/ meter security Deposit.
Chapter 8 – ARR for FY14 to FY16
Page 165
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Interest on loan capital: The norms prescribed by the Commission in its
MYT
regulations-2006 are ‘Interest on loan capital shall be computed loan wise’.
Projection of interest for each of the control period is on following basis.
 Loan outstanding as on 31.03.2012 as per provisional accounts duly
considering the rate of interest, and terms of repayment
 For FY-13, loan existing as on 30.09.2012 and the estimation for the next half
year is considered for computation of interest.
 For financing of future capital cost of projects, a Debt: Equity ratio of 70:30 is
adopted as per the norms framed by the Commission under
3.7.1 of MYT
regulations
Loan Capital outstanding as on 31.03.2012 and loan wise details are as under.
Sl.
No.
Acc.
Code
Name of the
loan
Year of
Drawal
1
53.308
PMGY- loan
from GOI
through GOK
2
53.332
Loan from
GOK-APDRP
carried
forward
from KPTCL
carried
forward
from KPTCL
3
53.333
Loan from
REC-APDRP
4
53.336
5
53.337
6
53.501
7
53.501
Amount
out
standing
as on
31.03.12
in Rs. Crs.
Rate of Interest
per annum
Loan
term
Average
amount
of
repaymen
t per year
in Rs. Crs.
Int.
due
1.1
12
20
0.11
0.13
45.87
11.5
20
4.1
5.28
2006
100.72
8.5-11.5
13
19.66
11.08
Loan from
REC-RGGY
carried
forward
from KPTCL
15.59
5.4 to12.25
15
0.94
1.71
Loan from GokGanaga kalyana
2006
2.16
11
10
0.54
0.24
2005
21.45
11
10
14.28
2.36
10.85-11.25
399.99 Repayment from
2013 (40
13
20
44.00
Loan from
Comml. BankSPA SchemesSBI(RLMS)
Loan from
Comml. BankSPA Schemes-
Chapter 8 – ARR for FY14 to FY16
2011
Page 166
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Canara Bank
quarterly
installments)
Loan from
Comml. BankSPA SchemesBOI
2010
200
12 Repayment
from 2013 (40
quarterly
installments)
13
20
24.00
53.961
Loan from PFC
carried
forward
from KPTCL
1.1
11
13
0.111
0.12
10
3.3477
RAPDRP(PFC)(
A)
2009
78.4
20
5.88
9.02
11
53.348
RAPDRP(PFC)(
B)
2010
43.54
20
3.26
5.01
12
53.337
2010
12.3
11.5 Repayment
from 2013 (40
quarterly
installments
11.5 Repayment
from 2015 (40
quarterly
installments
11.25-12
6
1.96
1.41
96.64
12
8
9
53.501
PFC(DRUM)
Japan Bank
JBIC
13
Total
1018.86
11.11
90.841
Loan for FY-13: For FY-13 upto Sept-12, Rs. 280 Crs. has been booked towards
Capex through internal resources. BESCOM applied loan to an extent of R.400 Crs.
Banks are yet to sanction the loan as on 31.10.2012. Hence interest provision to an
extent of 3 months is provided for R.400 Crs.
Interest on new loan capital; Capex envisaged for each year of the control period is
as under:
Particulars
Capex envisaged for the control
period
FY-14
848
FY-15
763
FY-16
627
‘For financing of future capital cost of projects, a Debt : Equity ratio of 70:30 should
be adopted ‘is the norms fixed by the Commission.
The share of equity ie., 30% of the future capital cost will meet through

40% of the Planned Capital Works is met through loan from GoK which will
be converted as equity in future.
Chapter 8 – ARR for FY14 to FY16
Page 167
115.47
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)

Consumer Security deposit

Cash component collected from the consumers as ‘Service Line Cost’ and

Return earned on equity for each of the control period.
As Balance sheet of BESCOM will not support any more borrowings from the
Commercial Banks. It is obvious to BESCOM to go for loan from Power Finance
Corporation or other Financial Institutions recommended by the Ministry of Power,
Government of India.
The rates of interest of Central Government financial
institutions are usually higher than the Commercial Banks.
Hence following
assumptions are considered for projecting the interest
3 years moratorium period for repayment of loan
Term loan be 10 years and repayment is on quarterly basis
Interest rate at 11.75%
(i) Means of Finance:
Internal resources generated though collection of Government of Karnataka (GoK)
Loan, MMD , Addl. MMD, Service line cost and Return on Equity is considered as the
internal resources for the capex plan. Total Amount of internal resources available
for the capex for the 2nd control period is shown below:
Rs. in Crs.
Particulars
FY-14
FY-15
FY-16
Capitalization out of fresh investments
253.42
256.86
272.90
114
114
114
2. Consumer Contribution
3. ROE
30
69.42
30
82.86
30
98.90
4. GoK Loan
40.00
30.00
30.00
253.42 256.86
272.90
Means of Finance
1.Consumer deposit
Total
Chapter 8 – ARR for FY14 to FY16
Page 168
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
(ii)Debt Equity ratio:
Rs. in Crs.
Particulars
Capex
Internal Resources
Borrowings
Debt Ratio
FY-14
848
253.42
594.58
70%
FY-15
763
256.86
506.14
66%
FY-16
627
272.90
354.10
56%
30%
34%
44%
Equity Ratio
(iii) Borrowings:
It is proposed to raise the funds required for the capex plan through various
financial institutions and Commercial banks. Prevailing SBI lending rates of 11.75%
as on 1st of April of the year is considered. The new loan and repayment is spread
over for the whole year. The loan borrowed for the year is the difference between
the new loan and the repayment. For computation of interest half of the above
difference is reckoned. interest to be paid is computed by adding the opening
balance and portion is arrived . The detailed computation is furnished below.
Rs. in Crs.
Sl.
No.
Years
FY-14
FY-15
FY-16
1
Opening Balance
2
New loan addition
594.58
506.14
354.10
3
297.29
253.07
177.05
4
Half of Sl. No.2 ( 2 X0.5)
Net New loan considered for
computation.(1+3)
297.29
847.65 1,277.78
5
Rate of interest @11.75% on opening
balance + mean
Interest on Fresh Borrowings
0
34.93
594.58 1,100.72
99.60
150.14
Computation of interest on the existing Loan for control period
Chapter 8 – ARR for FY14 to FY16
Page 169
Bangalore Electricity Supply Company Limited
Years
Opening Balance
Average Repayment
Closing Balance
Rate of Interest
(weighted average)
MYT for 3 rd control period (FY14 – FY16)
FY-13
1418.86
90.84
1328.02
FY-14
1328.02
90.84
1237.18
150.46
140.17
FY-15
FY-16
1237.18 1146.34
90.84
90.84
1146.34
1055.5
129.88
119.59
Abstract of interest on Loan capital
Particulars
Interest on existing loan Capital
Interest on New loan Capital
Total
FY-14
FY-15
FY-16
140.17
129.88 119.59
34.93
175.10
99.60
150.14
229.48 269.73
Interest on working capital: Norms fixed by the Commission for the purpose of
computation of interest on working capital as per MYT regulations are as under:
3.11.1 Working capital shall cover:
(a) Operation and maintenance expenses for one month;
(b) Maintenance spares @ 1% of the historical cost of assets at the beginning of
the year and
(c) Receivables equivalent to two month’s average revenue.
3.11.2 Rate of interest on working capital shall be on normative basis and shall be
equal to the short-term Prime Lending Rate of State Bank of India as on 1st
April of the year. The interest on working capital shall be payable on
normative basis notwithstanding that the Distribution Licensee has not taken
working capital loan from any outside agency. ‘
Table below depicts the estimated cost towards working capital
Particulars
FY-14
FY-15
FY-16
1/12th Operation and Maintenance
93.86
106.14
119.40
1% of Gross fixed assets at the
beginning of the year
58.55
63.57
67.90
Chapter 8 – ARR for FY14 to FY16
Page 170
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
2 months Receivables
Estimated Working Capital
2,017.00 2,254.00 2,525.00
2169.32 2423.42 2712.13
Projected Interest on working capital at
14.75%p.a as on 13th Aug 2011
319.97
357.45
400.04
Interest on consumer Security deposit and Meter Security Deposit: Norms fixed by
the Commission for the purpose of payment of interest on Consumer Security
deposit vide regulation 8 of KERC (Security Deposit) Regulations-2007 are as
under
“The Licensee shall pay interest on Security Deposit (ISD, ASD & Meter Security
Deposit) of the Consumer as specified under K.E.R.C. (Interest on Security Deposit)
Regulations, 2005”
As per Regulations,2005 ‘interest on security deposit of the consumer at the Bank
Rate prevailing as on 1st April of the financial year for which interest is due’
Consumer Security Deposit (ISD and ASD) and Meter Security Deposit held for FY11 to FY-16 is as under.
Following assumptions are made for the purpose of computation of interest on
Consumer Security deposits.

Net Security deposit collected in the previous control period is
approximately about One hundred Crore. Hence it is presumed that Rupees
One hundred and ten Crore will be collected in each year of the 3rd control
period.

Bank rate at 9 per cent per annum is considered as per the MONETARY AND
CREDIT INFORMATION REVIEW, Volume VIII , Issue 10 April 2012
Particulars
Security Deposit( ISD and ASD)
Meter Security Deposit
Total
Interest paid
Rate of Interest paid
FY-12
FY-13
FY-14
FY-15
FY-16
1933.71 2043.71 2153.71 2263.71 2373.71
73.13
77.13
81.13
85.13
89.13
2006.84 2120.84 2234.84 2348.84 2462.84
105.86
117.99
201.14
211.40
221.66
5.27%
5.56%
9.00%
9.00%
9.00%
(Source: RBI website)
Chapter 8 – ARR for FY14 to FY16
Page 171
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Other interest and Finance charges for FY-13 are retained at Rs.4.65 Crs as
approved in Tariff Order 2012. For the control period an amount of Rs.7.22 is
projected.
Consolidated Interest and Finance Charges
Particulars
FY-12
Interest on Loan Capital
Interest on Working Capital
Interest on Consumer Security
Deposit
Other Interest & Finance Charges
Total
87.87
196.51
105.87
FY-13
(T.O 2012)
150.46
148.35
117.99
FY-14
FY-15
FY-16
175.10
319.97
201.14
229.47
357.45
211.40
269.72
400.04
221.66
7.22
5.06
7.63
7.63
7.63
397.47
421.86
703.84
805.95
899.04
8.7 Other Debits and Prior period Credits:
The Commission has not been considering the projections for other debits and Prior
period Credits for the reason that, the same cannot be estimated beforehand. Hence,
the same is not estimated. However, the Commission is requested to allow these
amounts based on actual.
8.8 Return on Equity:
The accrued RoE for the 3rd control period is shown below:
Rs. in Crs.
Particulars
Share capital
Share capital
Reserve and Surplus
Total
RoE
FY-12
205.95
340.96
(232.54)
314.37
60.92
FY-13
205.95
340.96
(171.62)
375.29
72.72
FY-14
205.95
340.96
(98.91)
448.00
86.81
FY-15
205.95
340.96
(12.10)
534.81
103.63
FY-16
205.95
340.96
91.54
638.45
123.71
8.9 Other Income:
BESCOM has adopted the changes in schedule VI with effect from 01.04.2011in
compliance to the Ministry of Corporate Affairs (MCA) revision dated 1st March
Chapter 8 – ARR for FY14 to FY16
Page 172
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
2011. As per the new changes, Other income as per audited accounts of FY-11 and
FY-12 are as under.
AS per Actulas
Particulars
Interest Income
Profit on sale of Stores
Excess Provision made in prior period which is no
longer required
Rental from Staff quarters
Depreciation withdrawn as per AS12
Value of materials found excess during physical
verification
Rebate for collection of Electricity duty
FY-11
9.46
FY-12
4.18
0.56
0.49
Estimated
FY-13
0
0.84
56.13
0
1.12
1.52
69.24
73.79
0.41
0.46
0.2
1.77
2.01
2.11
Rate fluctuation-Power purchase
1.67
9.98
Misc. Recoveries
17.66
15.91
Subsidy from GoK
46.72
10.93
Incentives received
90.29
145.8
150
293.36
265.07
172.64
Total
17.82
Since, the Commission is approving of the income in the old format the reports in
the new schedule is modified and projections are made accordingly. Details are as
under:
Particulars
Interest on Bank Deposits
Profit on sale of Stores
Sale of Scrap
Rental from Staff quarters
Value of materials found excess
during physical verification
Rebate for collection of Electricity
duty
Misce. Recoveries
Incentives received
Total

FY-11 FY-12 FY-13 FY-14 FY-15 FY-16
9.46
4.19
0
0
0
0
1.06
0.49
0.84
0.84
0.84
0.84
0.67
0.00
0.27
0.27
0.27
0.27
1.12
1.53
1.67
1.72
1.77
1.82
0.07
0.41
0.2
0.2
0.2
1.77
2.02
2.11
2.11
2.11
2.11
17.4
25.90
17.82
19.60
21.56
23.72
90.29
72.81
150
155
160
165
121.84 107.35 172.91 179.74 186.75 193.96
It is presumed that rental from staff quarters will increase by 3% due to
increase in HRA rates to the Urban and Rural areas by the Government of
Karnataka.
Chapter 8 – ARR for FY14 to FY16
0.2
Page 173
Bangalore Electricity Supply Company Limited

MYT for 3 rd control period (FY14 – FY16)
Misc. Recoveries is increased by 10% as the consumer base is increasing 5%
year on year and incentives may increase by 5 crores year on year by
efficient financial management.

It cannot be assumed any growth rate in other income groups.
8.10 Projected abstract of ARR for FY-13 and control period (FY-14 to FY-16)
is shown below:
Rs. in Crore
Sl.
No.
Particulars
FY-13
FY-14
FY-15
FY-16
10111.14
11358.49
13441.72
15112.12
30.10
56.30
63.70
71.60
870.17
91.98
126.64
957.40
112.60
143.69
1082.70
127.40
157.98
1217.90
143.30
167.07
1
Power purchase cost inclusive of
transmission charges and SLDC
Charges
2
R&M Expenses
3
4
Employee Expenses
A&G Expenses
5
Depreciation
6
Interest & Finance Charges
7
Interest on Loan Capital
150.46
175.10
229.47
269.72
8
Interest on Working Capital
148.35
319.97
357.45
400.04
9
Interest on Consumer Deposits
Interest on belated payment of
power purchase cost
117.99
201.14
211.40
221.66
0
0
0
0
5.06
7.63
7.63
7.63
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11664.47
13332.33
15679.46
17611.03
72.7
86.8
103.6
123.7
172.91
179.74
186.75
193.96
1
0
0
0
11565.28
13239.40
15596.34
17540.78
10
11
16
Other Interest & Finance Charges
Other Debits (incl. Prov for Bad
debts)
Other (Misc.)-net prior period
credit
Power purchase cost as per
decision in OP No.8/2009 dated
11.12.2009
17
Total
18
ROE
19
Other Income
21
Fund towards Consumer
Relations / Consumer Education
22
NET ARR
13
15
Chapter 8 – ARR for FY14 to FY16
12.58
Page 174
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
Segregation of ARR into Distribution and Retail Supply Business
The Consolidated ARR has been segregated into ARR for Distribution Business and
ARR for Retail Supply Business based on BESCOM’s internal committee report.
Segregation of Costs
Particulars
Power purchase cost
R&M Expenses
Employee Expenses
A&G Expenses
Depreciation
Interest & Finance Charges
Other Debits (incl. Prov for Bad debts)
Other (Misc.)-net prior period credit
Other Income
ROE
Distribution Retail Supply
Business
Business
100%
62%
38%
52%
48%
62%
38%
71%
29%
16%
84%
53%
47%
19%
81%
51%
49%
100%
Accordingly, the following are the ARR for the Distribution Business and the Retail
Supply Business:
ARR for Distribution Business – FY13 & control period (FY-14 to FY-16)
Rs. in Crore
Sl.
No.
1
2
3
4
Particulars
Power purchase cost inclusive of
transmission charges and SLDC Charges
R&M Expenses
Employee Expenses
A&G Expenses
FY-13
0
FY-14
FY-15
0
FY-16
0
0
18.66
452.49
57.03
34.91
39.49
497.85 563.00
69.81
78.99
44.39
633.31
88.85
5
Depreciation
89.91
102.02 112.17
118.62
6
7
8
Interest & Finance Charges
Other Debits (incl. Prov for Bad debts)
Other (Misc.)-net prior period credit
Power purchase cost as per decision in OP
No.8/2009 dated 11.12.2009
Total
67.50
0.00
0.00
112.61 128.95
0.00
0.00
0.00
0.00
143.85
0.00
0.00
9
10
11
12
13
14
ROE
Other Income
Fund towards Consumer Relations /
Consumer Education
NET ARR
Chapter 8 – ARR for FY14 to FY16
0
685.59
72.7
88.18
670.12
0
0
0
817.20 922.61 1029.01
86.8
91.67
103.6
95.24
123.7
98.92
812.35 930.99 1053.80
Page 175
Bangalore Electricity Supply Company Limited
MYT for 3 rd control period (FY14 – FY16)
ARR for Retail Supply Business – FY13 & control period (FY-14 to FY-16)
Rs. in Crore
Sl.
No. Particulars
Power purchase cost inclusive of
1 transmission charges and SLDC
Charges
2
R&M Expenses
3
Employee Expenses
4
FY-13
FY-14
10111.14 11358.49
FY-15
FY-16
13441.72 15112.12
11.44
21.39
24.21
27.21
417.68
459.55
519.70
584.59
A&G Expenses
34.95
42.79
48.41
54.45
5
Depreciation
36.72
41.67
45.81
48.45
6
Interest & Finance Charges
Other Debits (incl. Prov for Bad
debts)
Other (Misc.)-net prior period credit
Power purchase cost as per decision
in OP No.8/2009 dated 11.12.2009
Total
ROE
Other Income
Fund towards Consumer Relations /
Consumer Education
NET ARR
354.36
591.23
677.00
755.19
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12.58
0.00
0.00
0.00
7
8
9
10
11
12
13
14
10978.88 12515.13
0.0
0.0
84.7
88.1
1.0
0.0
10895.15 12427.05
14756.85 16582.02
0.0
0.0
91.5
95.0
0.0
0.0
14665.34 16486.98
Gap in Revenue for FY14:
FY-14
NET ARR
13239.40
Revenue from Sale of power
12189.45
Deficit of FY-12
Revenue Gap
305.86
1355.81
Business Plan:
The Business Plan for the period of 5 years (FY-13 to FY-17) will be submitted
separately.
Chapter 8 – ARR for FY14 to FY16
Page 176