A Presentation on ARR Tariff Proposal of CESU for FY 2007-08 Broad Suggestions

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2. 3. 4. Levy Structure. CESU has proposed

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ORISSA ELECTRICITY REGULATORY COMMISSION Together, let us illuminate our lives. A Presentation on ARR & Tariff Proposal of CESU for FY 2007-08 Broad Suggestions/Objections Feburary 8, 2007

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Tariff Structure CESU has proposed – Higher normal duty increment for sponsored classes than the normal levy increment for financed classifications Allow a voltage shrewd misfortune stipulation for processing income necessity Allow the classification savvy tax to extension income crevice Allow the past misfortunes as administrative resources for be set off in future years through tax alongside enthusiasm to be chosen by the Commission An administration might be exacted on buyer for shamed checks (Rs.200 for LT and Rs.1000 for HT/EHT)

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To give single guide supply toward all flats to have better control and administration Demand charge for greatest request recorded amid a month notwithstanding vitality charge at an indistinguishable rate from pertinent to enterprises for crisis influence supply to CPPs/producing stations DPS for LT purchasers @1.25% every month for all classes of customers on the off chance that increments in duties are not adequate to connect the whole income hole should be crossed over by diminishment in BST or potentially Govt. endowment Considered genuine AT&C misfortune in FY 2006-07 as base level for setting future misfortune lessening Tariff Structure… Contd..

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Increase in reconnection charge as under: Tariff Structure… Contd..

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Legal Issues The ARR application documented by the licensee is not viable under law because of the accompanying imperfections: The licensees account has not been examined for FY 2004-05 and 2005-06. The licensee has recorded the application to befuddle the purchaser open without unveiling the reason for such documenting. The intrigued people are being kept in dull and not ready to document viable complaint and in that capacity the motivation behind such practice has been baffled and in opposition to law and standard of normal equity. The system/strategy so embraced by the Commission be made straightforward and cheap. The licensee has neglected to give points of interest as required under directions to the Commission for thought of his application in that capacity the application might be rejected.

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Issues raised by Objectors Military Engineering Services There ought to be biased Tariff between buyers of general class and of the protection. Appropriation Loss: The licensee has wretchedly neglected to capture high Distribution misfortune by virtue of unapproved utilization of influence. Circulation misfortune ought to be figured by taking proportion of units lost in dissemination framework barring EHT deal. Since, an extensive lump of purchasers are still unmetered and having blemished meters, the announced misfortune by the licensee is farfetched. Accumulation Efficiency: The customers are not to be loaded for in-productivity of licensees to gather their vitality levy from buyers consistently.

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Issues raised by Objectors.. Contd.. AT&C Loss AT&C idea ought not be actualized as it shrouds the wastefulness of the Licensee. Control Factor Incentive/Power Factor Penalty Power Factor motivating force must be computed upto two decimal division Power calculate punishment is imposed for power consider under 90% & control figure impetus ought to be given for power calculates over 90% at a similar rate. Control calculate punishment for the little and medium industry shopper might be presented. Cross Subsidy Bench Marks for continuous lessening of cross appropriation might be settled from this year to accomplish Zero level by 2009-10.

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Issues raised by Objectors.. Contd.. Nature of Services: The businesses are put to budgetary weight for being not able accomplish 80% Load Factor because of the failure of the licensee to supply legitimate quality power. Because of moderate up degree of the framework and sub-station, the new businesses are discovering hard to get control association. Voltage/recurrence change –The responsibility ought to be settled with the License as far as money related pay for the variance past standard standards.

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Issues raised by Objectors.. Contd.. Customer Classification Electricity tax for poultry might be at standard with agribusiness. The State Government has chosen to order poultry as agribusiness Reliance Telecom Ltd. furthermore, Reliance Infocomm Ltd. - Electricity vitality might be charged at Industrial Rates rather than General Purpose rates to the IT & ITES Industries working in the State BSNL Orissa Circle, Bhubaneswar BSNL might be dealt with as a modern undertaking as power is significantly used as thought process constrain for Industrial reason and without supply of force it is unrealistic to run the Telecom administrations. The BSNL is going under the domain of industry according to the decision of the Hon'ble Supreme Court in a few cases. So additionally according to the fund Act, 2002 w.e.f. 01.4.03, the matter of giving Telecommunication Services has been announced as modern undertaking.

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Issues raised by Objectors.. Contd.. Money related Issues without the examined asset report and report of the inspectors it is unrealistic for the objector to mention legitimate observable fact on budgetary matters. Workers cost – it is recommended that an expansion of around 6% over a year ago's arrangement as was being given before, might be permitted while settling the representatives cost for the FY 2007-08. Interests inferable from bonds The intrigue credited to bonds against arrear of force buys cost and capital estimation of bonds are not payable by shoppers.

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Issues raised by Objectors.. Contd.. Interests towards securitization The enthusiasm towards securitization and additionally capital of securitization ought not be passed on to the income necessity for tax proposes. Imbuing extra supports - The licensee might be coordinated to implant extra finances as might be required to pivot the area. Administrative resources - Any misfortunes that the circulation licensee likes to acquire in the wake of conforming to the requests of the Commission, must be considered with the end goal of processing the Regulatory Assets. Representatives cost - It is recommended that an expansion of around 6% over a year ago's arrangement might be permitted while settling the workers cost for the FY 2007-08. Past Losses - Past misfortunes ought to be paid through levy by purchasers just if these misfortunes have been acquired because of reasons outside the ability to control of licensee and notwithstanding licensee having executed according to seat marks settled by OERC.

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Issues raised by Objectors.. Contd.. Calculation of Load Factor Load component or utilization proportion to be resolved on the premise of Maximum Demand recorded in the meter as per Regulation 2(y) of the OERC Distribution (Conditions of Supply) Code, 2004. It will be simply and legitimate to figure the heap consider on the premise of Maximum Demand or 80% of the Contract Demand whichever is higher. A lower stack figure upto half might be endorsed for the time of yearly upkeep, which will be mutually chosen by the licensee and the shopper. The ensured stack element of 80% ought to be resolved on a yearly premise. Stack variable might be processed independently for pinnacle and off pinnacle hours and the general load element be registered by incorporating the above information. The LF be ascertained in view of the real time of accessibility of unhindered power supply amid the month. The MD amid the off pinnacle hours ought not be considered for figuring the LF.

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Issues raised by Objectors.. Contd.. Levy Issues The crevice of power charges between high utilization and low utilization ought to be decreased to least level, which will debilitate robbery of vitality. Contract Demand Time outline for diminishing the agreement request may not be forced. Arrangement for Rebate Seven sunny mornings might be given from the receipt of the bill to get the discount on incite installment.

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Issues raised by Objectors.. Contd.. Crisis Supply to CPPs The proposition of interest charges for crisis drawal to CPPs ought to be rejected. Crisis control necessity for CPP/Generating stations are low and for brief span just, it is not under any condition defended to propose request charges for crisis energy to CPP's. Rail-routes: Adoption of single part levy for Railway footing. Appropriate reception of concurrent most extreme interest for Railway footing supply. Railroad might be exempted from installment of Security store. Stipulation of punishment on power consider on the off chance that it goes underneath 0.85 as against 0.90. Stipulation of motivating force for development in power calculate over 0.85.

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Issues raised by Objectors.. Contd.. Allow of help to railroads for power supply intrusion and in addition low quality of supply. The duty material to Railway Traction ought to mirror the cost of supply with no cross endowment. To the extent supply to Railway Traction Sub-station is concerned, the dispersion organizations are not qualified for any wheeling charges as non of their own benefit is included in the supply procedure. Overlooking of most extreme request of TSS's amid sustain expansions as Railways are compelled to stretch out nourish from neighboring TSS to the fizzled TSS zone. The duty proviso for mechanical settlement utilization ought to be appropriate to Railway province.

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Issues raised by Objectors.. Contd.. General Issues The extra costs real or evaluated by virtue of the wastefulness/powerlessness of licensee ought not be passed on to the purchasers through the duty, either as an immediate cost or a supposed Regulatory Asset. Any cost because of extra power buy, past the reasonable conveyance misfortune ought not be incorporated into the ARR of the licensee. Increment in the reconnection charge – no defense. The charges to the buyers ought to mirror the cost to the licensee. DPS for LT shoppers – no legitimization. A LT buyer loses the discount of 10 p/kwh in a month.