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Suo Motu Petition No. 43/06
Sub:--
Clarification/modification on various points of tariff order dated
31.3.06
ORDER
(Passed on 13.6.2006)
The Commission after issue of tariff order for FY07 has
noted some errors and ambiguities which need to be clarified and
ambiguities removed. The Commission has therefore on its own decided
to register a Suo Motu Petition no. 43/06. A public notice was also
published on 1.6.06 in newspapers to offer comments/suggestions on
the following issues from all stakeholders:-
(i) Allowable grace period
under tariff schedule LV-1
(ii) Applicability of demand
based tariff and �billing demand�
(iii) Definition of �Minimum
Charge�
(iv) Applicability clause of
Seasonal consumer under tariff schedule HV-4
(v) Conditions for payment of
minimum charges
(vi) Applicability of minimum
load factor to LT Industries, Railway Traction,
Coal Mines and HT
Industrial & Non Industrial categories
The last date of
submission of comments/suggestions was fixed on 9.6.06 and the date
of hearing was fixed on 13.6.06.
2. The Commission has
received 61 comments/objections/suggestions from various
stakeholders. The Commission has also considered all the responses
received within due dates and after the due dates. The issues and
responses of various stakeholders have been examined. The Commission
has noted that some of the stakeholders have raised new points and
given new suggestions on review of tariff order other than the
points mentioned above in respect of some categories of consumers.
The Commission during the public hearing on 13.6.06 made clear to
all the stakeholders that the aforesaid issues related to this Suo
Motu petition shall only be considered and other new substantive
issues like review of tariff order can only be considered through a
review petition if filed before the Commission. Therefore, the
Commission issues following clarifications/modifications which shall
be applicable from the date of implementation of tariff order dated
31.3.2006.
(i) The Commission had noticed
that the order mentions at page 80 at point 4.7(a)(c) that the
Commission will allow 1% of the total number of hours in a month as
the grace for the utility for unforeseen interruptions while on page
90 clause (a), the note describes continuous or uninterrupted supply
as supply for an average duration of 23 and a half hours or more per
day. Thus, there is a discrepancy between the two i.e. at one place
it works out to 7.2 hours per month while at the other it works out
to 15 hours per month.
The Commission�s
intention was to allow a small margin for routine maintenance etc.
It is clarified through this order that for the purpose of
considering uninterrupted supply, an interruption of 30 minutes or
less in a day or a total of 15 hours in a month shall be ignored and
the supply shall be considered as continuous or uninterrupted.
(ii) Under tariff schedule LV-4
for Industrial category, there is an overlap in the tariff for
25 HP LT Industries at 4.1b and 4.1c.
The Commission clarifies
hereby that the tariff schedule LV-4 under Note ( c) on page 96 be
read as under:-
�Any consumer may opt for demand based tariff, however for the
consumers having connected load above 25 HP , demand based
tariff is mandatory and the licensee shall provide Tri vector/Bi
vector Meter capable of recording Demand in KVA/KW, KWH, KVAh and
Time of Use consumption.�
(iii) The minimum guaranteed
consumption was defined at page 111 at point 3.6 and 3.7 but the
word �Minimum Charge� was mentioned in the heading instead of
�Minimum Consumption�. This is an ambiguity.
The Commission had only
mentioned the methodology for computing the minimum guaranteed
consumption during the year at para 3.6 & 3.7 and this can not be
termed as the Minimum Charges. Also, in respect of other category of
consumers, the same methodology was mentioned under the Head �
Minimum Consumption� . It is clarified that the words �Minimum
Charge� are replaced by �Minimum Consumption�.
(iv) (a) On page 113
in Applicability clause 4.1, the period of season is described as
from 15th March to 15th October in a financial year. As the period
from 15th March to 15th October does not appear in one financial
year, there is a discrepancy and it is hereby clarified that the
words � in a financial year� are omitted and read as �in a calendar
year�.
(iv) (b) On page 113
at heading of �Minimum Charge�, the fixed cost charge was not
included under minimum charges. This has created an ambiguity; it
needs to be clarified.
The
Commission clarifies hereby that in view of the fact that a seasonal
consumer is required to achieve the minimum consumption within a
limited period only. Therefore, such seasonal consumer is not
required to pay fixed charges if he ensures a minimum consumption as
specified in the order i.e. 900 units per KVA. To elaborate, for a
consumer having 100 KVA contract demand at 11 KV, minimum guaranteed
annual consumption will be 90,000 units and the consumer will pay
the energy charges for this consumption which works out to Rs. 3.78
lakhs. If this consumer had consumed only 30,000 units in a season,
his fixed charge payment liability would work out to Rs. 2.16 lakhs
(100 KVA X 12 months X 180 Rs./KVA) and energy charge liability
would work out to Rs. 1.26 lakhs ( 100 KVA X 300 units/KVA X 4.20 Rs./unit)
and the total of these two would be Rs. 3.42 lakhs. The minimum
charge as fixed by the Commission is equivalent to 900 units per KVA
of consumption, which is higher than the liability worked out in the
above example. Thus it is clarified that the seasonal consumer
ensuring minimum consumption of 900 units per KVA in a season is
required to pay only energy charges and no separate fixed charges
shall be payable by him. This condition is special for seasonal
consumer. In the illustration given above where the seasonal
consumption fall short of the minimum, the consumer will be required
to pay Rs. 3.42 lakhs as energy charges and Rs. 0.36 lakh as tariff
minimum.
(v) On page 124 at sr.
no. 24 and on page 103 at sr. no. (p), the condition for payment of
minimum charges is not defined clearly which results in confusion
and is liable to misinterpretation. This needs to be removed and
hence the following words are deleted.
� In case minimum charge
is levied to consumer, he has to pay either minimum charges or sum
of fixed charges and energy charges, whichever is more. Other
charges shall be billed separately.�
(vi) As per tariff order
dated 31.3.2006, the minimum consumption based on load factor is
levied to following categories of consumers:--
a. LT
Industries
b. Coal Mines
c. Industrial and Non-Industrial
It has come to the notice of the
Commission that supply to some areas is not continuous or some other
restrictions are placed on consumption due to which aforesaid
consumer may not be in a position to ensure minimum consumption
based on prescribed load factor. There is thus a need to clarify the
provision of minimum charges/minimum consumption.
The Commission hereby
clarifies that the minimum consumption/ minimum charges be computed
as below and the existing words appeared in the heading of Minimum
charge/minimum consumption under tariff schedule LV-4, LV-5.2 and
HV-3 be deleted. The order shall thus read as follows:--
For LT Industries up
to 25 HP under tariff schedule LV-4
� The consumer will guarantee minimum
monthly payment of the charges of the units (KWh) equivalent to
annual minimum consumption based on 240 units per HP of contract
demand plus the Fixed Cost Charges on the contract demand for the
month, irrespective of whether any energy is consumed or not during
the month. The deficit, if any, from the actual consumption (i.e.
minimum guaranteed consumption minus actual consumption) shall be
charged at the prevailing rate of Energy Cost Charges as Tariff
Minimum Difference and the adjustment of deficit units shall be done
at the end of the financial year.�
For LT Industries
more than 25 HP under tariff schedule LV-4
� The consumer will guarantee minimum
monthly payment of the charges of the units (KWh) equivalent to
annual minimum consumption based on 360 units per HP of contract
demand plus the Fixed Cost Charges on the contract demand for the
month, irrespective of whether any energy is consumed or not during
the month. The deficit, if any, from the actual consumption (i.e.
minimum guaranteed consumption minus actual consumption) shall be
charged at the prevailing rate of Energy Cost Charges as Tariff
Minimum Difference and the adjustment of deficit units shall be done
at the end of the financial year.�
For Agriculture
related use in rural areas under tariff schedule LV- 5.2
� Minimum Charge :
Charges equivalent to 240 units per
annum per HP or part thereof of the connected load shall be payable
by Consumers under metered supply.�
For Coal Mines (HV-2) and
Industrial & Non Industrial (HV-3)
For Supply at 220/132 KV Voltages
� The consumer will
guarantee minimum monthly payment of the charges of the units (KWh)
equivalent to annual minimum consumption based on 1980 units per KVA
of contract demand plus the Fixed Cost Charges on the contract
demand for the month, irrespective of whether any energy is consumed
or not during the month. The deficit, if any, from the actual
consumption (i.e. minimum guaranteed consumption minus actual
consumption) shall be charged at the prevailing rate of Energy Cost
Charges as Tariff Minimum Difference and the adjustment of deficit
units shall be done at the end of the financial year.�
For Supply at 33/11 KV Voltages
� The consumer will guarantee minimum
monthly payment of the charges of the units (KWh) equivalent to
annual minimum consumption based on 1200 units per KVA of contract
demand plus the Fixed Cost Charges on the contract demand for the
month, irrespective of whether any energy is consumed or not during
the month. The deficit if any from the actual consumption (i.e.
minimum guaranteed consumption minus actual consumption) shall be
charged at the prevailing rate of Energy Cost Charges as Tariff
Minimum Difference and the adjustment of deficit units shall be done
at the end of the financial year.�.
(v) On page
111 under tariff schedule HV-3, standby charge has been shown in
terms of energy charges which is proposed to be covered under
Regulation on � Power Purchase and other matters with respect to
Captive Power Plants� being issued separately. These conditions and
terms of supply of standby power shall be separately notified by
Commission. Hence, the following words appearing under Schedule HV-3
on 111 of tariff order are deleted.
� Note: Standby
power may be supplied by the licensee @ 1.5 times of the energy
charges subject to the consumer not being defaulted in payment.�
3. Ordered
accordingly.
Sd/
Sd/
(D.Roybardhan)
(P.K. Mehrotra)
Member (Engg.)
Chairman |
