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DAKSHIN HARYANA BIJLI VITRAN NIGAM Sales Circular No. D-10/2013 From CE/Commercial, DHBVN, Hisar. To All CEs/SEs/XENs/SDOs/OP, JEs-I, Incharge Sub office, in DHBVN. Memo No. Ch-10/SE/C-16/50/2013/S/C Dated : 20/3/2013 Subject: Providing uninterrupted supply of power on selected Urban and Industrial feeders and applying reliability surcharge thereon. Enclosed please find herewith the copy of HERC order dated 14/3/2013 on the subject cited matter for compliance. This order is also available on Commission’s website www.herc.gov.in . Related Instructions are amended to this extent please. The above instructions should be brought to the notice of all concerned for careful and meticulous compliance. DA/As above CE/Commercial DHBVN, Hisar

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Page 1: DAKSHIN HARYANA BIJLI VITRAN NIGAM Sales Circular · PDF fileDAKSHIN HARYANA BIJLI VITRAN NIGAM . Sales Circular No ... Shri V.K. Sodhi, ... agreed with the contents of the Petition

DAKSHIN HARYANA BIJLI VITRAN NIGAM

Sales Circular No. D-10/2013 From CE/Commercial, DHBVN, Hisar. To All CEs/SEs/XENs/SDOs/OP, JEs-I, Incharge Sub office, in DHBVN.

Memo No. Ch-10/SE/C-16/50/2013/S/C Dated : 20/3/2013

Subject: Providing uninterrupted supply of power on selected Urban and Industrial feeders and applying reliability surcharge thereon.

Enclosed please find herewith the copy of HERC order dated

14/3/2013 on the subject cited matter for compliance. This order is also available

on Commission’s website www.herc.gov.in.

Related Instructions are amended to this extent please.

The above instructions should be brought to the notice of all concerned

for careful and meticulous compliance.

DA/As above CE/Commercial DHBVN, Hisar

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BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION BAYS NO. 33 - 36, SECTOR – 4, PANCHKULA

Case No. HERC/PRO – 26 of 2012

Date of Hearing: 12.02.2013

Date of Order: 14 .03 .2013

In the matter of

1. Petition filed by Dakshin Haryana Bijli Vitran Nigam (DHBVNL) for providing

uninterrupted supply of power on selected Urban and Industrial feeders and

applying reliability surcharge thereon. Petitioner

2. M/s Faridabad Industries Association, Faridabad Respondent-1

3. M/s Jindal Stainless Ltd., Hisar Respondent-2

And in the matter of:-

Dakshin Haryana Bijli Vitran Nigam, Vidyut Sadan, Hisar, Haryana.

Quorum: Shri R.N. Prasher, Chairman

Shri Rohtash Dahiya, Member

Shri Rampal, Member

Present on behalf of Interveners: Shri R.P. Jindal, JSL

Col. (Retd) Shailendra Kapoor, FIA

Shri D.K. Gangwar,Starwire (I) Ltd.

Shri Ranjan Anand, Escorts (T)

Shri V.K. Sodhi, Yamuna Nagar – Jagadhri

Chamber of Commerce & Industries.

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On behalf of UHBVNL / DHBVNL: Shri Devendra Singh, Chairman cum Managing

Director.

Shri P.C. Gupta CE/Comm, DHBVNL

Shri Anish Kumar, DHBVNL

ORDER

1. The Distribution & Retail Supply Licensee in the Southern Circles of

Haryana i.e. Dakshin Haryana Bijli Vitran Nigam had submitted the

present Petition vide memo no. Ch-53/SE/RA-282/Vol – VII dated

31.10.2012 for providing uninterrupted supply of power on selected

Urban and Industrial feeders and applying reliability surcharge

thereon. The Distribution & Retail Supply Licensee in the Northern

Circles of Haryana i.e. Uttar Haryana Bijli Vitran Nigam vide their

memo no. Ch-79/GM/RA/N/F-54/Vol – VIII (8) dated 13.12.2012 also

agreed with the contents of the Petition filed by Dakshin Haryana Bijli

Vitran Nigam (both the Petitioners are hereinafter referred to as the

Discoms).

2. The Discoms, in their Present Petition, have prayed as under:-

(i) For implementation of providing uninterrupted power supply to the

consumers on selected feeders and levy reliability surcharge on all the

units consumed during a month.

(ii) Approval to implement the above proposal may be granted for a

period of one year or till such time Haryana is power surplus or as may

be approved by this Commission.

(iii) The Commission may determine compensatory charges in an

event power availability to such consumer(s) is below 90% on the

feeder.

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(iv) The Commission may allow reconciliation of Reliability Charges

collected on a periodic basis.

(v) Pass any such other order(s) and / or direction(s) which the

Commission may deem fit and proper considering the facts and

circumstances of the case.

3. The Discoms, while seeking the above, have submitted the following

for consideration of the Commission.

3.1 Need for filing the present petition:

The Discoms had submitted that they desire to provide uninterrupted

power supply for 24 hours to Urban/ Bulk Supply/ Bulk Domestic/ NDS

and Industrial feeders with loss levels as specified in table – 6. In order

to improve customer satisfaction and provide 24 hours power supply to

the consumers who wish to avail this facility the Discoms had

submitted that they would have to purchase additional power for this

purpose and hence they have filed the present petition to get the extra

power procurement cost approved and to be recover the additional

cost as reliability charge.

3.2 Determination of Power Purchase quantum:

a) The Discoms had provided energy units in MUs for FY 2012-13,

as approved by the Commission for sale to Domestic, Non

domestic, HT industry, LT Industry and Bulk Supply category of

consumers of the Discom. The same is reproduced in table – 1.

Table 1

Category DHBVN (MU)

Domestic 3840

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Non Domestic 2751

HT Industry 4477

LT Industry 815

Bulk Supply 344

b) As on date, DHBVN had submitted, that they are maintaining

the running hours for its urban/ mixed urban and industrial

feeders as depicted in table – 2.

Table 2

Category DHBVN

Urban/ Mixed urban 20 hours

Industrial/ Independent 20.5 hours

a) It was further submitted by the Discoms that in order to

maintain 24 hour power supply to the consumers on selected

feeders, additional power needs to be purchased, which will

primarily be procured from open market at a price higher than

the price at which long term power procurement is done by

them. In support of this contention the Discoms had provided

the details of price of electricity in the open market for FY 2011-

12 and FY 2012-13. The same is presented in the tables 3, 4 &

5.

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Table 3 Price of Short term transactions of electricity (Rs/kWh), 2011-12

Period

Bilateral Though Traders Power

Exchange UI

RTC Peak Off Peak Total IEX PXIL NEW Grid SR Grid

Apr-11 4.76 5.07 4.72 4.76 3.49 4.00 3.91 6.35

May-11 4.52 5.02 4.22 4.49 2.96 3.03 2.86 3.82

Jun-11 3.81 4.94 3.81 3.82 2.80 2.99 2.96 3.29

Jul-11 3.90 3.95 3.70 3.90 2.97 3.22 3.55 3.42

Aug-11 3.88 4.73 3.61 3.88 2.89 3.01 3.14 2.68

Sep-11 3.95 6.26 4.63 3.95 3.00 3.08 3.81 3.24

Oct-11 4.19 5.16 5.02 4.22 5.40 5.42 6.55 5.52

Nov-11 4.25 6.80 4.75 4.29 4.08 4.09 4.81 4.92

Dec-11 4.12 6.05 4.46 4.17 4.05 4.02 5.40 4.35

Jan-12 4.38 6.10 5.12 4.43 3.29 3.36 3.33 4.36

Feb-12 4.41 5.93 4.70 4.45 3.34 3.50 3.17 5.09

Mar-12 4.37 5.74 4.86 4.43 3.32 3.94 2.96 5.87

Source: CERC Report on Short term power market in India: 2011-12

Table 4 Electricity Prices in IEX (Rs/kWh), 2011-12

Summary Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12 Feb-12 Mar-12

Average (RTC) 3.53 2.94 2.80 2.99 2.99 3.10 5.43 4.14 4.17 3.46 3.63 3.26

Peak 4.35 3.25 3.15 3.73 4.03 4.54 6.22 4.44 4.70 3.88 3.87 3.52

Non Peak 3.25 2.84 2.68 2.74 2.64 2.62 5.16 4.04 3.99 3.32 3.56 3.18

Day 3.45 3.36 3.15 3.19 2.90 2.88 5.42 4.57 4.59 3.75 3.79 3.40

Night 3.18 2.59 2.45 2.39 2.56 2.48 5.04 3.46 3.13 2.54 3.01 2.93

Morning 3.02 2.36 2.25 2.55 2.32 2.41 4.95 4.13 4.45 3.92 4.10 3.21

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Table 5

The Discoms had submitted that the data from Power Exchange India

Limited (PXIL) has not been included in tables 4 and 5 due to small

volume of power trading done through this exchange which is less than

10% of the volume traded in IEX. The Discoms have submitted that It can

be observed from the above tables that in most of the cases the per unit

price of electricity sold is more than the average rate of power purchase

allowed by the Commission in FY 2012-13 for DHBVN i.e. Rs. 3.20 / kWh

without accounting for inter- state and intra-state transmission losses and

the losses in the distribution system.

3.3 Reliability / Additional Charge:

a) The Discoms have proposed to provide uninterrupted power

supply only on the selected urban and industrial feeders having

existing line loss levels as per table -6.

Price of Short term transactions of electricity (Rs/kWh), 2012-13

Month

IEX NEW Grid Traders

Min Max Weighted Average Peak

Non Peak Min Max

Average Price Min Max

Weighted Average Peak

Off Peak

Apr-12 1.20 20.00 3.19 3.35 3.04 0.00 12.22 2.81 2.96 7.07 4.40 5.78 4.95

May-12 1.80 19.95 3.60 3.66 3.35 0.00 17.46 4.26 2.75 7.07 4.30 6.12 4.79

Jun-12 1.30 19.50 4.11 4.53 4.09 0.00 17.46 5.55 2.90 6.15 4.11 4.91 4.17

Jul-12 1.20 19.00 4.51 5.21 4.08 0.00 17.46 6.13 2.90 7.56 4.03 5.81 4.69

Aug-12 1.00 14.61 3.89 4.46 3.23 0.00 17.46 2.16 2.90 8.04 4.22 4.89 4.30

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Table 6

Feeders Line Loss level less than

Urban feeders/ Bulk Supply/ Bulk

Domestic/ NDS feeders

15%

Industrial feeders 6%

b) Period of Implementation

The Discoms have proposed to levy the reliability surcharge on the

consumers availing this facility for a minimum period of one year or

till such time the State of Haryana is power surplus, whichever is

earlier.

c) In order to supply uninterrupted power to the consumers on

selected feeders, the Discoms have submitted that they would

make substantial capital investment for strengthening the

distribution network so that the entire system can bear the

additional load on the feeders which will be kept energized at all

times in a day.

d) Additionally the Discoms, considering the high market price of

electricity and the capital investment to be made for strengthening

the distribution network, have proposed Rs 2.50 per unit as

additional reliability charge for the category of consumers to which

uninterrupted power supply shall be made available, on selected

Urban/ Bulk Supply/ Bulk Domestic/ NDS feeders and Industrial

feeders for all the units consumed in a month by the consumer.

The Discoms have mentioned that the industrial consumers use

diesel generators for generating electricity during period of power

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cuts. The electricity generated from DG sets costs around Rs 12

per unit. Hence the provision of 24 hours of uninterrupted power

supply by the Discom on payment of reliability charge, as

submitted by them, is a win-win proposition for the industrial

consumers.

e) The Discoms have further submitted that the facility of

uninterrupted power supply is optional. The group of consumers

on the above mentioned feeders, having the stipulated line loss

levels, who wish to avail this facility, will have to approach the

distribution licensee(s) and sign an undertaking whereby they shall

agree to pay reliability charge over and above their respective tariff

(energy charge, fixed charge, FSA, PLEC, electricity duty and

municipal tax). If more than 50% of the consumers on a particular

feeder agree to avail this facility then the Discoms shall provide

uninterrupted power supply to all the consumers on that particular

feeder and continue to charge reliability charge from all the

consumers on the feeder, irrespective of their consent.

f) Further the Discoms have mentioned that the distribution licensees

shall strive to provide power availability for more than 95% time of

the day. However, in case the power availability falls below 90%

time of the day, the distribution licensees shall pay compensatory

charges to all the consumers on the particular feeder where the

supply was below 90%. The charges shall be compensated in their

electricity bills. They have requested the Commission to determine

the compensatory charges.

4.0 Legal Status:

The Discoms have submitted that, the Electricity Act, 2003, lays

special emphasis on safeguarding consumer’s interest and also

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requires that the cost should be recovered in a reasonable manner.

The Electricity Act, 2003 mandates that tariff determination should

be guided by factors, which “encourage competition, efficiency,

economical use of resource, good performance and optimum

investment”. The relevant provision of Electricity Act, 2003 and

National Tariff Policy cited by the Petitioners are reiterated below:

Section 62 (Determination of tariff):

(3) The Appropriate Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.

Section 94. (Powers of Appropriate Commission):

(2) The Appropriate Commission shall have the powers to pass such interim order in any proceeding, hearing or matter before the Appropriate Commission, as that Commission may consider appropriate.

Provision 8.2.1 of National Tariff Policy 2006 –

(1) All power purchase costs need to be considered legitimate unless it is established that the merit order principle has been violated or power has been purchased at unreasonable rates. The reduction of Aggregate Technical & Commercial (ATC) losses needs to be brought about but not by denying revenues required for power purchase for 24 hours supply and necessary and reasonable O&M and investment for system upgradation. Consumers, particularly those who are ready to pay a tariff which reflects efficient costs have the right to get uninterrupted 24 hours supply of quality power. Actual level of retail sales should be grossed up by normative level of T&D losses as indicated in MYT trajectory for allowing power purchase cost subject to justifiable power purchase mix variation (for example, more energy may be purchased from thermal generation in the event of poor rainfall) and fuel surcharge adjustment as per regulations of the SERC.

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In view of the above mentioned submissions the Petitioner has

concluded that while determining tariff, the Commission can

differentiate the tariff on the basis of nature of supply and other

parameters as mentioned above.

5.0 Objections filed by the Interveners:

In order to have the benefit of the views of the consumers likely to

be affected by the aforesaid proposal of the Discoms, the

Commission sought the views of the stakeholders on the same.

In response to the above, two almost identical objections were filed

by the Faridabad Industries Association and Jindal Steel

(hereinafter referred to as the Respondents). A brief synopsis of the

objections raised by the Respondents is presented below.

The Respondents, in their objections to the Discom’s proposal

mostly relied on the provisions of the Electricity Act, 2003; Tariff

Policy notified by the Central Government in January, 2006; the

terms and conditions of the Distribution & Retail Supply license

granted by this Commission and the Regulations notified by the

Haryana Electricity Regulatory Commission namely HERC

(Standard of Performance for the Distribution Licensee)

Regulations, 2004.

The Respondents have submitted that this Commission decides the

ARR and tariff for quality and reliable power; hence the petition of

the Discoms for introduction of reliability charge is devoid of merit

and needs to be rejected by this Commission.

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They had further submitted that as per the Electricity Act, 2003 and

HERC Regulations as well as the Terms and Conditions of the

License; it is the duty of the Licensee to provide 24 hours power

and to do so there is no need for any special dispensation.

Additionally, the Respondents have submitted that as far as

purchase of additional power is concerned this Commission allows

procurement of sufficient quantum of power. If the Licensee is able

to supply the same they will not need to resort to additional

purchase of power. Moreover, the Licensee, instead of selling the

available power to its , consumers is selling power outside the State

(inter –state sales).

In addition to the above the Respondents had submitted that the

very concept of selected feeders on the basis of line loss levels is

discriminatory. In fact the Petitioner should have created ‘express

feeders’ to provide uninterrupted supply and submitted a proposal

to this Commission for determining separate tariff for consumers on

such feeders.

The Respondents, in their written submission, had further submitted

that the proposed reliability charge of Rs. 2.50/unit on the plea of

high open market price of electricity and capital expenditures

required for strengthening the distribution system and further

comparing the same with cost of generation from Captive Power

sources, have overlooked the fact that under the prevailing law(s)

the consumers have the option to buy power from any other source

through open access and does not necessarily depend on captive

DG sources.

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Further, the Respondents had submitted that the present proposal

is bad in law as even if a single consumer opts out of the scheme

he could not be forced to pay the proposed reliability charge.

Additionally, the existing position wherein peak load exemption

surcharge (PLEC) is being levied by the Discoms, the proposal is

without any merit.

In view of the above arguments, the Respondents had submitted

that the proposal is unwarranted and hence ought to be rejected by

this Commission at the preliminary stage itself.

6.0 Public Hearing: The Commission scheduled a hearing of the parties on 12.02.2013

and heard at length the arguments of the Discoms in support of their

proposal and the counter arguments of the Respondents. As both

parties mostly reiterated their written submissions, the same is not

being reproduced here, except where the Petitioner agreed to

modify their written proposal / scheme.

7.0 The Commission’s observations and ruling:

a) As regards the preliminary objections of the Respondents

regarding non – admissibility of the Petition in accordance with the

provisions of the Electricity Act, 2003, the Commission has relied on

Section 62(3) of the Act and admitted the Petition.

b) The Commission has considered the submissions of the

Chairman cum Managing Director of the Discoms in the hearing held

on 12.02.2013 that the present proposal has been drafted after

consultation with the stakeholders wherein majority of the

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consumers have agreed to the scheme. The Commission upon

hearing the interveners is of the considered view that at present the

proposed scheme will be useful only for such large consumer(s) who

have Diesel Generator(s) as source of back – up power, which is

expensive as well as environmentally not benign. The Commission

believes that such large consumers(s) are generally on exclusive or

shared independent feeder(s) and they mostly have DG back – up

power supply. In case the proposed scheme is offered to such

consumer(s) there is very high probability that all of them on that

feeder will agree to it. However, for smaller consumer(s) who rely on

inverters etc. for power back – up there is very little likelihood that

they would be willing to pay the substantial additional cost i.e.

reliability charge over and above the applicable normal tariff and

charges. In the present format the scheme is designed to be

applicable on feeder(s) on which majority of the consumer(s) opt for

it. Effectively this would imply that merely because some

consumer(s) are willing to pay the extra cost the unwilling

consumer(s) too would have no option but to bear the extra burden.

The Commission, on this issue, agrees with the intervener, that such

a proposition is not justifiable. At the same time the Commission is

of the considered view that if the scheme is properly implemented

and the benefits of the same is quickly visible, more and more

consumer(s) will opt for the scheme. Therefore, to begin with, the Commission orders that this scheme shall be optional and applied only to the Consumer(s) on Independent Feeder or any other Feeder where all the Consumer(s) on such Feeder(s) opt for it. This, the Commission believes, would also allay the concerns raised by the Interveners in the public hearing.

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In view of the above discussions the Commission approves the scheme with certain modifications, as per the details in the subsequent paragraphs.

c) The Commission has considered the objections filed by FIA and

JSL regarding no need for additional power purchase by the

Discoms for providing reliable power and levying an exorbitant

reliability surcharge of Rs. 2.50/Unit over and above the normal tariff

as well as peak load exemption surcharge already being levied by

the Discoms. The Commission observes that the fact cannot be

denied that given the present energy balance and distribution

system constraints, the incidence of load shedding across consumer

categories is fairly acute. Further, the cost of 10% marginal long

term power purchased by the Discoms in FY 2012-13 was in excess

of Rs. 5.30/Unit as against the average power purchase cost of

about Rs. 3.65/Unit. Additionally, the Commission finds it difficult to

agree with the contention of the Respondents that on one hand the

Discoms are having surplus power and are selling power outside the

State and on the other hand they want to levy additional charge for

supplying reliable power to the electricity consumers in Haryana.

Regarding this the Commission notes that during off peak hours

there may be some surplus power available to the Discoms and

since the power is contracted on the basis of ‘take or pay’, the

Discoms are compelled to sell the same outside the State to

compensate for some cost of power that they have to incur under

long term contracts. However, the fact remains that during morning

and evening peak hours the quantum of power available to the

Discoms from the sources approved by the Commission, could be

inadequate due to higher than normative distribution losses and

hence power regulatory measures are implemented by the Discoms.

Consequently, in case the Discoms undertakes to provide reliable

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power they may have to either schedule the most expensive power

available in the Grid as at that point of time entire Northern Grid of

which Haryana is a small constituent, will be operating under low

grid frequency i.e. demand outstripping the power being dispatched

by the available generators. Thus arranging power in such a

scenario for the Discoms may turn out to be very expensive. This

fact is also supported by the details of price of short term power

including the power transacted through the IEX and electricity

traders submitted by the Discoms.

In view of the above, the Commission is of the considered view that

the additional cost incurred by the Discoms for supplying reliable

power needs to be recovered through a reliability charge.

(d) The Commission has examined the contention of the

Respondents that the Discoms, in accordance with this

Commission’s order, are already levying Peak Load Exemption

Surcharge (PLEC) and the proposal to levy reliability surcharge on

the plea that they have to purchase expensive power during peak

load hours is inappropriate. On this issue the Commission observes

that in the hearing held on 12.02.2013 the Chairman cum Managing

Director of the Discoms conceded this issue raised by the

Respondents and agreed that no PLEC shall be levied on the

consumer(s) who opt for availing reliable power and paying reliability

surcharge thereon.

Accordingly the Commission orders that since the consumer(s) who opt for reliable power after paying the reliability surcharge shall be doubly burdened in case PLEC is also recovered from them, the Discoms shall not levy any PLEC on such consumers. On such consumers Peak Load restrictions and

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PRM shall not apply. Further the scheme should be allowed only where the system is capable of being run even when all feeders emanating from a power transformer are running at their rated peak load.

(e) The issue of per unit rate of reliability charge was also discussed

at length. In the hearing held on 12.02.2013, the Chairman cum

Managing Director of the Discoms agreed to reduce the reliability

charge of Rs. 2.50 / unit originally proposed by them to Rs. 1.50 /

unit.

The Commission, considering the cost difference in the weighted

average rate of short term power and the weighted average rate of

long term power purchased by the Discoms, finds the modified

proposal reasonable and thus approves the same. Hence the reliability charge shall be Rs. 1.50 / unit subject to the terms and conditions as approved by the Commission in the present order.

(f) In the hearing held on 12.02.2013, the issue of consumers who

opt for reliable power and may be billed on MMC basis was also

raised. The Commission deliberated the issue at length and is of the

considered view that in case of such consumer(s) for any period /

billing cycle who is billed on MMC basis then in such an event in

addition to paying MMC as determined by the Commission in

accordance with the tariff order dated 31.03.2012, shall also pay the

reliability surcharge and other charges including FSA on the actual

energy consumed by him during the period.

(g) The Commission, in principle, agrees with the contention of the

Respondents that the Petitioner could have introduced the concept

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of ‘express feeder’ and submitted a proposal to this Commission for

separate tariff. In view of the above, the Commission orders

implementation of the reliability surcharge up to 31st March, 2014

and directs the Discoms to submit a proposal along with supporting

details with their next ARR and Tariff Petition. The Commission,

after taking into consideration the revenue impact and consumer’s

feedback as well as Discoms performance up to 31.03.2014, shall

decide whether to continue with the scheme or not.

(h) As regards the Discom’s proposal to determine compensatory

charges in an event the power availability is below 90% on the

feeders, the Commission is of the view that on such feeders where

reliably power and surcharge is introduced, the Discoms shall

ensure that to the extent possible, load shedding in not undertaken

since the consumers shall be paying reliability surcharge for every

Unit of consumption.

7.1 Terms & Conditions:

i) The number of Interruptions on such feeder(s) shall be capped at

30 per month. In case the interruptions, in any given month exceeds

the capped number for reasons not attributable to the Consumers,

then reliability charge shall not be leviable on the entire consumption

during such month(s). However, this shall be subject to force

majeure events such as weather conditions (flood, cyclone etc.),

devastating fire, major earthquake or any other act of God.

ii) The reliability charge / penalty shall be as per the table that

follows:

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Sr.No. Reliability of Supply Reliability Charge

1 Total Period during which supply

remained available during the

billing period works out to 95%

and above

Rs 1.50 /kWh

2 Total Period during which supply

remained available during the

billing period works out equal to

90% or above but less than 95%

Rs. 0.50 / kWh

3 Total Period during which supply

remained available during the

billing period works out to less

than 90%

Nil (Penalty Clause

shall apply)

iii) Penalty Clause:

In the event of availability of supply being less than 90% during the

billing period, the Discoms will pay a compensation of Rs. 0.50 /

kWh for the entire consumption of such consumer(s) during the

billing period.

iv) On all such feeder(s) brought under the ambit of reliable power

supply, the Discoms shall install AMR at the sub – station end of the

feeder. Till such time the meters are installed at the sub – station

end, the consumer’s meter(s) shall be relied upon for determining

the period of supply during the billing period / cycle.

v) In order to reconcile the accounts, as prayed for, the Discoms are

directed to maintain a separate account for the power supplied and

additional revenue generated from sale of such power to the

consumer(s) under the reliable power supply scheme. The additional

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revenue generated shall be set off against quarterly FSA claims of

the Discoms.

vi) Any additional capital expenditure that the Discoms may be

required to undertake to implement the scheme over and above the

Capex approved by the Commission in Discoms’s ARR, the

Discoms may file a petition along with relevant details for approval of

the Commission. However, such capital expenditure shall not

exceed 15% of the total additional revenue expected from this

scheme in the twelve month period.

viii) The Discoms shall be obliged to continue the scheme for 12

months.

ix) Power supplied under this scheme shall not be at the cost of

other consumers.

In conclusion, the Commission observes that due to envisaged

generation capacity augmentation in Haryana including power

availability from other long term sources, the peak load shortages

may not continue in the medium to long term. Hence the

Commission believes that the reliability charge approved by the

Commission is only a short term measure and ought not to continue

beyond a year or two at the most.

In view of the above discussions, the Commission allows the

Petition as modified in the relevant paragraphs for a period of one

year till 31.03.2014.

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This order is signed, dated and issued by the Haryana Electricity

Regulatory Commission on 14th March, 2013.

Date: 14th March, 2013 Place: Panchkula

(Ram Pal)

(Rohtash Dahiya)

(R.N. Prasher)

Member Member Chairman