mescom - chapter - 6
TRANSCRIPT
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
CHAPTER - 6
REVIEW OF COMPLIANCE OF
DIRECTIVES ISSUED BY THE COMMISSION
The Commission had in the earlier tariff orders and in various
letters issued the following directives for compliance by MESCOM.
Compliance of those directives is discussed in this section.
6.1 Directive on Demand Side Management and Energy Efficiency Measures
MESCOM is directed to explore the possibility of introducing the
following DSM and Energy Efficiency measures, which would result
in reduction in consumption of energy and peak demand
a) Making “Time of Day Tariff” compulsory for industrial
consumers.
b) Installing electronic “timer switches” for streetlight
installations for switching “on” and “off” at the required
timings.
c) Bifurcation of agricultural loads from the existing 11 KV
feeders.
d) Adopting HVDS for agricultural loads which results in reduction
of line loss and prevents theft of energy.
e) To adopt “Bachat Lamp Yojana” that is being launched by the
Bureau of Energy Efficiency.
MESCOM is directed to formulate a time bound action plan to
implement the above Demand Side Management and Energy
Efficiency Measures so that desired result is achieved. MESCOM is
also directed to submit a report thereon to the Commission within
three months.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Compliance by MESCOM
(a) Making “Time of Day Tariff” compulsory for industrial consumers.
As per Hon’ble Commissions’ Tariff Orders, optional “Time of day” is
implemented in MESCOM. As at the end of December 2011, 41 Nos.
of HT consumers and 16 Nos. of LT consumers have availed TOD
tariff facility. At present, whenever the consumers opted for TOD
tariff appropriate metering / Time Zone in the meter is being
provided. All HT installations, 40 HP and above in LT-industrial
category are having TOD compatible meters. Whenever, the
consumer opted for TOD tariff the time zone will be activated.
(b)Installing electronic “Timer Switches” for streetlight installations for switching “on” and “off” at the required timings.
Installation and maintenance of street lights is the responsibility of
local bodies. However, MESCOM has addressed letters to the
concerned Authorities of local bodies to install electronic “Timer
Switches” to the streetlights duly explaining the benefits available
there from.
(c) Bifurcation of agricultural loads from the existing 11 KV
feeders.
MESCOM has implemented RLMS in 147 nos of feeders for arranging
quality supply in scheduled time to Rural IP sets and arranging
continuous supply to domestic, commercial and industrial loads in
the rural areas. With the implementation of this Scheme in Kadur,
Chikmagalur and Sagar Divisions, the IP sets are separated from
other domestic/ commercial/ industrial loads in Rural area. This
has increased the quality of supply in scheduled time to IP sets and
continuous power supply to other categories of consumers.
d) Adopting HVDS for agricultural loads which results in reduction of line loss and prevents theft of energy.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
MESCOM has identified Puttur Division for implementation of HVDS.
Based on the study, DPR will be prepared in the next 3 to 4 months
and compliance will be submitted.
(e)To adopt “Bachat Lamp Yojana” that is being launched by the Bureau of Energy Efficiency.
“Bachat Lamp Yojana” envisages distribution of quality long-life CFL
lamps, a maximum of four, to the grid connected residential
households in exchange for incandescent lamps in working
condition at Rs.15/- each. In the wake of non-response from the
vendors / providers, MESCOM floated tender for fourth time where
two vendors / providers have participated in the bidding process.
Action will be initiated for implementation of the scheme after
finalizing the received bids.
Commission’s views
MESCOM is directed to furnish a time bound action plan within three
months to implement the above Demand Side Management and
Energy Efficiency Measures immediately. The progress achieved in
regard to fixing Timer Switches to street light installations and
Bachat Lamp Yojana are not up to the expected level. The progress
achieved in implementing the directives shall be reported to the
Commission regularly. Also, the Commission reiterates its
suggestion that, ESCOMs on behalf of the local bodies, may take
action for installing timer switches to the streetlight installations
and recover the cost from the local bodies to save time in
avoidance of wastage of energy. MESCOM is directed to act
expeditiously on this issue.
6.2 Directive on Implementation of Intra State ABT
KPTCL and ESCOMs have reported that they have commenced the
process of setting up Area Load Despatch Centres to implement
Intra State ABT as earlier directed. The Commission hereby directs
that the work of establishing ALDCs in all the ESCOMs shall be
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
completed fully and Intra State ABT is made operational by 31st
August, 2010. Thereafter, progress achieved in this regard shall be
reported to the Commission on fortnightly basis.
Compliance by MESCOM
The Distribution Control Centre of MESCOM was
commissioned on 22-09-2009.
The Facility of real time data viewing and Breakers
controlling is available upto 33 KV station level.
In respect of 66KV and above stations, only real time
data viewing facility is made available from the Master Control
Centre-1, which is under the control of KPTCL.
Commission’s views
In the Advisory committee meeting held on 30.03.2011 it was
informed by MD, KPTCL that the Intra State ABT would be
implemented from April 2011 and the Generators would also be
included. The Commission notes that Intra State ABT is being
delayed on one ground or the other. This is affecting to inter
company accounting. Therefore, the Commission directs that the
KPTCL and the ESCOMs shall take all necessary measures
immediately to complete the remaining activities for
implementation of Intra State ABT and report compliance.
6.3 Directive on Taluk wise Feeders’ Segregation
ESCOMs shall furnish to the Commission the programme of
implementing 11 KV taluk wise feeders’ segregation during the
financial year 2010-2011 with the following details-
a) No. of 11 KV feeders considered for segregation.b) Month wise time schedule for completion of envisaged work.c) Improvement achieved in supply after segregation of feeders.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Compliance by MESCOM
MESCOM in its letter dated 27-07-2010 has stated that in respect of
implementation of RLMS for the remaining 15 Nos of 11 KV Rural
feeders, 11 Nos. of feeders have been commissioned and 2 feeders
will be commissioned by the end of July, 2010.It has stated that the
other feeders have been omitted from the scope of the present
scheme.
Commission’s views
MESCOM shall furnish the reasons for not including the other
feeders from the scope of RLMS. The Company shall furnish the
details of improvement in supply after implementation of RLMS.
6.4 Directive on Metering at the Distribution Transformer Centres (DTCs)
The Commission had earlier directed ESCOMs to complete
installation of meters at the DTCs by 31st December, 2010. In this
regard ESCOMs were required to furnish to the Commission the
following information by 30-04-2010 and thereafter report on a
monthly basis on the progress achieved in respect of -
a) No. of DTCs existing in the Company.b) No. of DTCs already metered.
c) No. of DTCs yet to be metered. d) Time bound monthly programme for completion of work
Compliance by MESCOM
MESCOM has continued its program of metering Distribution
Transformer Centers with RAMR facility. The position of DTC
metering as at the end of December-11 is as below;
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Division
Total No. of DTCs existing
as at the end of 31-12-2011
No. of DTCs metered as at the end of 31-
12-2011
Balance No. of DTCs to be metered
Urban
Rural
Total
Urban Rural Tota
lUrba
nRura
lTota
l
Mangalore 3308197
3528
12830
27285
7478
1946
2424
Puttur 647245
4310
1176
233 409 471242
1289
2
Bantwal 208328
5349
3121
46 167 87323
9332
6
Udupi 1244315
6440
0774
157 931 470299
9346
9
Kundapura 101153
1163
266 46 112 35
1485
1520
Shimoga 1442394
8539
0924
1995291
9518
1953
2471
Sagar 304233
5263
9192
1114130
6112
1221
1333
Shikaripura 207271
7292
469 2094
2163
138 623 761
Chikmaglore 519343
2395
1344
880122
4175
2552
2727
Kadur 213419
4440
7169
3778394
744 416 460
Total 8193 29025
37218
5665 10170 1583
5 2528 18855
21383
Commission’s views
The overall progress is only 57% and MESCOM has not submitted
the Action Plan for implementing balance DTC metering. Therefore,
it shall furnish a month wise implementation programme along with
the proposed plan to obtain meter readings to conduct energy
audit. MESCOM is directed to put in concerted efforts to achieve
100% DTC metering and to conduct Energy Audit for the DTCs
metered already. Compliance/action taken regarding the same
shall be reported to the Commission early.
6.5 Directive on to prevent electrical accidents
The Commission has reviewed the electrical accidents that have
taken place in the State during year 2010-11 and with regret noted
that as many as 391 people and 595 animals have died due to these
accidents. From the analysis it is seen that major causes of these
accidents are due to snapping of LT/HT lines, accidental contact with
live LT/HT/EHT Lines, hanging live wires around the electric
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
poles/transformers, etc, in the streets posing great danger to human
lives.
Having considered the above matter, the Commission hereby directs
all the ESCOMs/Hukkeri RECS/KPTCL to prepare an action plan to
effect improvements in the transmission and distribution networks
and implement safety measures to prevent electrical accidents.
Detailed Division wise action plans shall be submitted by MESCOM
to the Commission within two months.
Compliance by MESCOM
MESCOM has attached utmost importance to prevent electrical
accidents by formulating action plan.
MESCOM has initiated action to provide 11KV-33KV High Voltage
Detectors to the field staff, which is a safety device used to verify
whether the overhead line is live or not prior to earthling. It
indicates the presence of High Voltage by audio annunciation as
well as visual indication.
During 2009-10, 100 Nos of High Voltage Detectors of Motwane
make have been purchased through BESCOM. Also, MESCOM has
procured 321 Nos. of the Detectors.
Further, MESCOM has also distributed Special Line Testers to
Linemen in Chickmagalore and Shimoga Divisions. Action is being
taken to distribute these testers to other Divisions also.
Commission’s views
The Commission notes that even during 2011-12, 59 people and 96
animals have died in the MESCOM due to electrical accidents. This has
been viewed seriously. In addition to procurement of safety
devices/equipment, it is also essential to make use of equipment in a
safe manner. Employees should be trained on safety measures to be
adopted while doing work on the network, besides creating continues
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
awareness on safety issues. MESCOM shall submit its action plan to
reduce accidents within one month and the progress achieved with
regard to reduction of hazardous installations in the network with
expenditure incurred for FY2011-12 shall also be submitted. MESCOM
shall also educate the consumers regarding the safety precautions to
be taken by them to avoid accidents through media and interaction
meetings.
Further, the Commission notes that the compensation paid in case
of accidents is inadequate and needs to be enhanced. Therefore
the Commission directs MESCOM to take action to suitably increase
the quantum of compensation under intimation to the Commission.
6.6 Directive on HT / LT Ratio
MESCOM is directed to take measures to achieve HT line: LT line
ratio of 1:1 by adopting Niranthara Jyothi Yojana in Rural areas and
by converting LT lines into HT lines and providing additional DTCs in
Urban areas in one taluk as a pilot project. By achieving 1:1 ratio,
LT line losses will be reduced. MESCOM shall furnish time bound
action to achieve this ratio in one taluk of the Company.
Compliance by MESCOM
MESCOM has commissioned 3194, 2871, 2795, 2589 ,3383 and
2104 numbers of additional distribution transformers in Fy-07, Fy-
08, Fy-09, Fy-10 ,Fy-11 and Fy-12 (upto Dec-11) respectively. Two
numbers of new 33/11 KV sub stations were also commissioned in
December-11.
Consequently, there is marginal improvement in HT: LT ratio.
Comparison of HT:LT ratio in different years are given below;
Year Length of HT Lines
(in CKMs)
Length of LT Lines
(in CKMs)
HT : LT Ratio
Fy-08 21591 63095 1 : 2.92
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Fy-09 22693 64653 1 : 2.85Fy-10 23647 66084 1 : 2.79Fy-11 24912 68757 1 : 2.76FY-12(uptoDec-11) 25646 70109 1 : 2.73
Commission’s views
The Commission observes that HT to LT line ratio is the highest in
the MESCOM. Therefore, MESCOM is directed to achieve HT to LT
line ratio of 1:1 by converting LT lines into HT lines and providing
additional DTCs in Urban and Rural areas by expediting the works
under RAPDRP and HVDS, with a concerted approach to reduce LT
line losses. In view of slow progress in achieving the targeted ratio,
MESCOM is directed to furnish time bound action plan under
schemes mentioned supra to achieve this ratio in the Company.
6.7 Directive on MIS and Computerization
MESCOM shall improve its Management Information System (MIS)
and provide more details and explain the basis for all the
projections indicating the sources of data and the method of
estimating the projected values in the next filing.
The Commission directs MESCOM to hasten the pace of action to
achieve progress in computerization. MESCOM shall furnish the
details of sanctioned load and slab wise consumption for the
purpose of computation of fixed charges in the next ERC filing.
MESCOM has to improve its database, and there shall be
consistency in the data furnished to the Commission.
Compliance by MESCOM
Hon’ble Commission has directed to furnish details of sanctioned
load and slab wise consumption accurately in the ERC for the
purpose of correct computation of fixed charges and revenue
realization in different slabs of consumption relating to various tariff
categories.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
In this connection, it is to be submitted that MESCOM has furnished
the required data of sanctioned load and slab wise consumption in
the filing for computation of fixed charges and revenue realization.
Further, it is to be stated that MESCOM is changing the Total
Revenue Management Service Providers consequent to the
selections in the recent tendering process and will act diligently
towards improvement in database with consistency in the data.
Commission’s views
MESCOM shall furnish the above details for the purpose of more
accurate computation of fixed charges and revenue realization in
different slabs of consumption relating to various tariff categories.
MESCOM has to improve its database and shall be consistent in the
data furnished.
6.8 Directive on Energy Audit
The Commission had directed MESCOM, to prepare a metering plan
for energy audit to measure the energy received in each of the
interface points and to account for the energy sales. The
Commission had also directed MESCOM to conduct energy audit and
chalk out an Action Plan to reduce distribution losses to a maximum
of 15% wherever it was above this level in 5 towns/ cities having a
population of over 50000.
Compliance by MESCOM
As a part of the Company strategy to reduce technical and
commercial losses, MESCOM is undertaking energy audit in the
following levels;
a) Division wise energy audit: MESCOM is conducting energy
audit separately for each O&M Division duly accounting the inter
Division energy transfer transactions. Comparative position of
distribution losses in the Divisions are as below;
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
b) City / Town energy audit: As per the directions of the Hon’ble
Commission, the distribution loss in respect of the selected 6
cities namely Mangalore, Udupi, Shimoga, Bhadravathi, Sagar
and Chikmagalur are being continuously monitored. The loss
levels in all these cities are within 10%.
Further, for rigorous energy auditing MESCOM has selected 16
major taluk head quarter towns. Loss levels in 16 cities / towns
have been brought within 10% .
Position of distribution loss in the selected Cities / Towns, as at
the end of December-11, are as below;
Sl.No. City/Town % Dist. Loss
1 Mangalore 5.872 Udupi 6.693 Shimoga 8.044 Bhadravathi 8.775 Sagar 5.316 Chickmagalore 9.897 Bantwal 9.688 Belthangady 4.799 Puttur 3.56
Division% Loss in FY-
09
% Loss
in FY-10
% Loss in FY-
11
% Loss in FY-
12(Upto Dec-11)*
Mangalore 10.09 %
8.66 % 7.68 % 8.13%
Puttur 17.42 %
15.81 %
15.10 %12.81%
Bantwal 13.22%Udupi 10.76
%10.19
%9.23 %
7.29%Kundapura 8.59%Shimoga 8.61 % 8.76 % 8.03 % 8.02%Sagar 20.34
%20.57
%20.25 %
13.13%Shikaripura 8.46%Chikmagalore
9.96 %11.70
%11.47 % 14.73%
Kadur 19.01 %
22.59 %
22.40 % 25.04%
Total 12.95 %
12.64 %
11.92 %
10.98%
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
10 Sullia 1.5011 Kakala 6.9412 Kundapura 6.3413 Thirthhalli 7.8914 Shikaripura 9.1215 Soraba 8.6016 Hosnagar 6.1517 Kadur 8.6518 Tarikere 8.6219 Mudigere 6.3520 Koppa 5.1921 Sringeri 5.8522 NR Pura 7.38
c) Feeder wise energy audit: MESCOM is monitoring 639
feeders. Feeder wise energy audit is being carried out to assess
the distribution / AT&C loss. Loss levels in monitored DTCs Upto
Dec-11 are indicated below;
Division
No. of 11 KV feede
rs
No. of11 KV
feeders monitor
ed
Below
10%
10 to 20%
20 to 30%
30 to 40%
40 to 50%
Mangalore 112 112 83 29 0 0 0Puttur 43 40 38 1 1 0 0Bantwal 48 48 18 28 2 0 0Udupi 74 74 53 21 0 0 0Kundapura 30 30 19 9 2 0 0Shimoga 103 103 49 33 12 5 4Sagar 50 46 16 8 13 7 2Shikaripura 54 50 4 9 34 3 0Chickmagalore 62 61 11 30 18 2 0Kadur 78 75 18 10 9 16 22Total 654 639 309 178 91 33 28
Commission’s views
MESCOM is directed to expedite the process and segregate the
technical and commercial losses duly backed up by relevant
studies. As seen from the analysis of the Division wise Energy Audit,
the distribution loss pertaining to Kadur Division is very high
compared to other Divisions. Therefore, MESCOM is directed to
initiate appropriate measures to reduce the loss to a reasonable
level. The Commission reiterates its directive to undertake energy
audit studies at distribution circle level and take necessary action to
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
reduce the higher loss level in 11 KV feeders and distribution
transformers centres. The compliance regarding the same shall be
furnished to the Commission regularly.
6.9 Directive on Assessment of IP sets’ consumption
The Commission had directed MESCOM to provide meters to DTCs
predominantly feeding to IP sets at the rate of two to four DTCs per
O&M section.
The Commission directs MESCOM to furnish the monthly data
downloaded from 22 ETV meters that was hitherto being furnished
by M/S TERI, commencing from the month of March, 07 and
onwards, in addition to the monthly statement of assessment of IP
consumption based on DTC metered sampling points that is being
furnished.
Pending 100% metering of IP sets installations and reading of
meters, MESCOM shall complete installation of meters to all DTCs
which are predominantly feeding IP sets and put in place a
mechanism to obtain periodical meter readings of such meters and
assess the IP set consumption.
Compliance by MESCOM
In the MYT filing for the control period 2011 to 2013, duly explaining
the impreciseness of considering metered consumption in respect of
IP sets, Commission was requested to allow the present practice of
assessment of IP set consumption based on sampling DTC metering
feeding predominantly to IP sets, for Fy-11 and Fy-12. In this
regard, Hon’ble Commission has directed to;
Arrange for calibration of the meters provided to IP sets and
to furnish metered consumption of IP sets for Fy-13.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Furnish taluk wise assessed consumption of IP sets based on
DTC meters duly considering LT line loss of 7% determined
by M/s TERI’s study.
To meter all DTCs which are predominantly feeding IP sets.
On the above, it is to be submitted before the Hon’ble Commission
that;
MESCOM is initiating action for calibration of meters provided
to IP sets.
MESCOM is considering taluk wise assessment of per IP
consumption and the details Fy-11 is furnished in the
enclosed statement. (Annexure-2, page No.145 to156)
MESCOM has already metered all the DTCs predominantly
feeding IP sets. The taluk wise details are as below;
District Taluk
No. of predominantly IP feeding
DTCs
Dakshina Kannada
Mangalore 27Puttur 16Sullia 10Bantwal 23Belthangady 18
UdupiUdupi 67Karkala 22Kundapura 23
Shimoga
Shimoga 45Bhadravathi 26Thirthahalli 12Sagar 17Soraba 24Shikaripura 47Hosanagara 9
Chickmagalore
Chickmagalore 39Mudigere 13Koppa 6Sringeri 3NR Pura 6Kadur 84Tarikere 54
Total 22 591
Commission’s views
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
MESCOM shall arrange for the calibration of the meters already
provided to IP sets and carry out replacement of faulty meters/CTs if
any for arriving at correct assessment of IP consumption, and report
to the Commission immediately and shall furnish metered
consumption of IP sets for FY13.Until then, MESCOM shall furnish
taluk wise assessed consumption of IP sets based on DTC meters,
duly considering LT line loss of 7% determined as per M/S TERI’s
study.
6.10 Directive on Quality of Service
a) Improving quality of service in Rural areas
The Commission has earlier commented on the poor quality of
supply, particularly in Rural areas. The Commission has directed
MESCOM to take action to reduce interruptions by attending to
periodical maintenance of lines and equipment, with particular
reference to Rural areas.
The Commission directs MESCOM to continue its efforts in improving
the quality of supply, particularly in Rural areas, where the quality
of supply is very poor.
Compliance by MESCOM
In spite of severe constraints like network deficiencies, Manpower
shortage and crunch in fund availability, MESCOM has continued its
efforts to cater equated power supply to its consumers in Urban and
Rural areas including IP sets.
As per the directions of the Hon’ble Commission, MESCOM is
furnishing periodical reliability indices data in the prescribed
formats. The reliability indices for 11 KV feeders in district head
quarters of MESCOM for the month December-11 ranges from
98.58% to 99.27% and the same for towns and cities for December-
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
11 range from 97.09% to 99.73%. The reliability index of 11 KV
feeders in Rural areas of MESCOM for the month of December-11
ranges from 92.02% to 98.28%.
Commission’s Views
During the course of public hearing many consumers and their
representative complaint on the quality of service of MESCOM and
its employees. The Commission directs MESCOM to continue its
efforts in improving the quality of supply, particularly in Rural areas,
where the supply is poor. MESCOM is also directed to furnish the
compliance/progress regarding the extent of improvements carried
out to the network with details of expenditure made.
6.11 Directive on Reliability Index of supply of power to
consumers
As per Schedule – II of the KERC (Licensees’ standards of
performance) Regulations – 2004, the licensees are required to
compute the following reliability indices
a. Average No. of interruptions in 11KV feeders
b. Average duration of interruptions in 11KV feeders
c. Average No. of interruptions per consumer
d. Average duration of interruptions per consumer.
At present, ESCOMs are furnishing the following monthly data on
Benchmark parameters for both Urban and Rural areas separately
a. Average number of interruptions in 11KV feeders
b. Average duration of interruptions in 11KV feeders
Clause 8 of the Distribution system planning and security standard
of the Distribution Code in the Karnataka Electricity Grid Code- 2005
also specifies computation of the reliability indices for planning of
extension and improvements to a distribution system.
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
Compliance by MESCOM
As per the directions of the Hon’ble Commission, MESCOM is
furnishing periodical reliability indices data in the prescribed
formats. The reliability indices for 11 KV feeders in district head
quarters of MESCOM for the month March-11 ranges from 93.69% to
97.94% and the same for towns and cities for March-11 ranges from
91.86% to 99.85%. The reliability index of 11 KV feeders in Rural
areas of MESCOM for the month of March-11 ranges from 84.29% to
98.07%.
The following comparative position of cumulative reliability indices
indicates the improvement in quality of service by MESCOM.
Sl.No.
ParticularsRange of indices
FY-10 FY-11
1.District Head Quarters
At feeder Level
94.27% to 98.10
%
95.96% to 97.64
%
At consumer level
93.25% to 97.96
%
94.45% to 97.08
%
2. Towns & Cities
At feeder Level
90.91% to 98.68
%
93.24% to 99.10
%
At consumer level
89.05% to 97.59
%
87.99% to 98.13
%
3. Rural Areas
At feeder Level
82.54% to 94.97
%
89.43% to 96.82
%
At consumer level
79.90% to 93.85
%
88.33% to 95.93
%
Commission’s views
MESCOM is directed to improve the reliability indices of 11 KV
feeder in Rural areas with a time bound Action Plan to carry out
improvements to the network with details of expenditure made.
MESCOM shall furnish the above monthly data in the formats
Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM
Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission
furnished by the Commission as per the “Guidelines for
determination of Reliability Index of supply of power to consumers”
dated 15.12.2008.
6.12 Directive on Regularization of unauthorized IP sets
The Commission, in a number of letters, and in the earlier Tariff
Orders directed MESCOM to regularize unauthorized IP sets (except
those in the grey and dark areas), immediately without imposing
any condition and to bring them into books of Accounts and raise
bills for the same immediately.
Compliance by MESCOM
The Government of Karnataka has ordered for regularization of un-
authorized IP sets existing in the system as on 28-02-2011 vide
order No. EN 09 PSR 2011 dated 11-03-2011. As per the order, all
un-authorized IP sets, existing as at the end of 28-02-2011, are
required to be regularized before 30-09-2011. GoK vide order
No.EN PSR 2011 dated .23-12-2011 has further extended the date
of regularization upto 31-01-2012.
In view of the Government Order, the reported number of un-
authorized IP sets as on 31-12-2011 is 16364 and out of which 5002
numbers have been regularized. The balance numbers will be
regularized after complying with the formalities by the prospective
consumers.
Commission’s Views
MESCOM is directed to complete the regularization of unauthorized
IP sets as per the Government Order by creating necessary
infrastructure. Further, MESCOM, needs to address the issue by
regular campaigns among farmers and to enlist the support of local
law enforcing Authorities to prevent the energisation of
unauthorized IP Sets. Further, time for energisation of IP Sets shall
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be reduced to the minimum. Compliance/progress shall be
submitted to the Commission.
6.13 Directive on Metering
The Commission, had in the earlier Tariff Orders directed MESCOM
to provide meters to IP sets, BJ/KJ and street light installations,
immediately. It has observed that, continuation of supply by
MESCOM to these unmetered categories without meters from
10.06.2005 violates the provisions of Section 55 of the Electricity
Act, 2003.
Further, MESCOM is directed to furnish progressively, the metered
consumption of IP sets, instead of assessed consumption on a
monthly basis.
Compliance by MESCOM
Hon’ble Commission has directed to meter 100% of IP, BJ/KJ and
Street Light installations. MESCOM has achieved 100% metering in
Street light installations. Percentage of metering in these categories
during Fy-11 and Fy-12 (upto December-11) is as follows. Further,
MESCOM has initiated action in May-2011 to provide revolving fund
of Rs.5 lakhs at the disposal of each of the Divisional Executive
Engineers (Ele.,) for speeding up the metering of the installations.
Category
Particulars FY-11FY-12 (upto
Dec-11)
BJ/KJ
No. of installations 165723 174506No. of metered installations 150547 155197
% of metered installations90.84
%88.94%
IP setsNo. of installations 202604 212819No. of metered installations 189111 199355% of metered installations 93.43 93.67%
Street light
No. of installations 14951 15663No. of metered installations 14951 15663
% of metered installations100.00
%100.00
%
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Commission’s Views
The Commission reiterates its directive to achieve 100% metering
of Street Light, BJ/KJ and IP set installations in order to arrive at
accurate consumption. MESCOM is directed to furnish to the
Commission, a plan of action with a time bound schedule for
achieving 100% metering and to obtain meter readings. Action
taken/compliance regarding the same shall be submitted to the
Commission early.
6.14 Directive on Segregation of distribution business and retail supply business
MESCOM is directed to segregate accounts between Distribution
business and Retail supply business by adopting a suitable
methodology and implement the same from the next financial year.
Compliance by MESCOM
MESCOM has constituted an internal committee of Officers at field
level and corporate level to make the study of various activities to
arrive at the cost apportionment formula.
Accordingly, based upon the Committee recommendations the
apportionment formula among Distribution and Retail Supply
business is as follows;
Particulars As proposed by the committee (%)
Dist. RetailPayable to generators 0 100Repairs &maintenance 73 27Employee costs 38 62A&G Expenses 37 63Depreciation & related debits 78 22Interest & finance charges 78 22Other debits 0 100Income tax 100 0Prior period credits / charges 0 100Gross fixed assets 78 22Depreciation 78 22Net fixed assets 78 22
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CWIP 100 0
Accordingly, the revised segregation of costs is apportioned and
indicated in the relevant paras.
Commission’s Views
These percentage allocations arrived during previous years may be
reexamined and the revised percentage if any shall be considered
for the ensuing year.
6.15 Directive on Lifeline supply of un-electrified
Households
The Commission has directed ESCOMs to prepare a detailed and
time bound action plan to provide electricity to all the unelectrified
villages, hamlets and habitations in every Taluk and to every
household therein. The action plan shall spell out the details of
additional requirement of power, infrastructure and man power
along with shortest possible time frame (not exceeding three years)
for achieving the target in every taluk and district.
Compliance by MESCOM
As a part of implementation of RGGVY programme, MESCOM has
identified 84,130 Rural house-holds for electrification in Shimoga
and Chickmagalore districts and as at the end of April-11 all of them
have been electrified. Also, 41,733 numbers of Rural House holds
have been identified in Dakshina Kannada and Udupi districts for
electrification which will be included in the 2nd phase of the RGGVY
scheme.
Further, MESCOM has identified 15 remote un-electrified villages in
the jurisdiction for electrification under Remote Village
Electrification Programme (RVE), a Ministry of New and Renewable
Energy, GoI, sponsored programme. List of the villages has been
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furnished to KREDL as per their request vide letter dated 04-10-
2010.
The programme is sought to electrify the remote villages through,
distributed renewable energy generation technologies of small
hydro power plants, biomass gasification systems, non-edible
vegetable oil based engines, biogas engines, solar photovoltaic
power plants and SPV Home lighting Systems.
Commission’s Views
In its tariff order dated October 28, 2011 the Commission had
directed ESCOMs to prepare an action plan to provide lifeline supply
of electricity to all Households without electricity in their respective
jurisdictions.
The Commission directs MESCOM to complete the task of
identification of households without electricity expeditiously. The
ESCOMs could take the latest District wise census data and prepare
detailed project reports for extending electricity supply to these
Households by availing of funding assistance under the RGGVY or
other programmes and report the compliance.
6.16 Directive on Power supply during night hours for
villages
It was directed to ensure at least 11 hours of single-phase power
supply to the Rural areas every day between 6.00 PM and 6.00 AM
with provision for one hour of load shedding, if required, to manage
evening peak demand between 6.00 PM and 10.00 PM.
Compliance by MESCOM
The Hon’ble Commission has directed to ensure at least 11 hours of
single-phase power supply to the Rural areas every day between
6.00 PM and 6.00 AM with provision for one hour of load shedding, if
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required, to manage evening peak demand between 6.00 PM and
10.00 AM.
In this connection, it is to be submitted that MESCOM is catering 7
to 19 hours of 3 phase supply and 9 to 12 Hours of single phase
supply to Rural areas.
Commission’s Views
The Commission while appreciating the MESCOM for providing 7 to
19 hours of 3-phase supply and 9 to 12 hours of single phase
supply, to Rural areas, directs to continue its efforts to ensure
power supply during night hours for villages as per Commission’s
directives.
6.17 Directive on Reliability of electricity supply
It was directed to prepare and publish supply schedules and report
compliance.
Compliance by MESCOM
It was submitted by MESCOM that it has prepared supply schedules
and posted the same on the website. It was further submitted that
compliance has also been sent to the Commission in this regard.
Commission’s Views
The Commission directs MESCOM to continue to submit the required
information within the stipulated period regularly.
6.18 Directive on Responsiveness to consumers
The Commission directs to hold consumers interaction meetings in
each O & M Sub-Division once in every two months according to a
published schedule. Such meetings shall be attended by
Superintending Engineers, Divisional and Sub-Divisional Engineers.
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MESCOM shall submit a schedule of such meetings to the
Commission.
Compliance by MESCOM
Consumer interaction meetings at sub Division level are being
conducted regularly where the Superintending Engineers (Ele) of
O&M Circles are also attending. Necessary press notification in this
regard are also being issued well in advance for information of
general public.
Commission’s Views
The Commission directs the MESCOM to continue its efforts for
conducting Consumers Interaction Meetings in all Sub-Divisions. It
shall also submit a schedule of such meetings to the Commission.
The feedback of such meetings conducted in one Rural and Urban
Sub-Division shall be furnished to the Commission on quarterly
basis.
6.19 Conservation of energy in irrigation
The Commission directs the MESCOM shall set up an efficient
Irrigation Promotion Cell to promote drip/sprinkle irrigation system
among farmers. These Cells shall co-ordinate with University of
Agricultural Sciences and to various departments of Government to
set up demonstration units of drip irrigation and conduct consumer
education programme for the benefit of IP set consumers.
Compliance by MESCOM
MESCOM has initiated action to take-up two pilot projects, one in
Dakshina Kannda and one in Udupi district for the implementation
of conservation of energy in irrigation.
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Commission’s Views
The Commission reiterates its direction to set up an efficient
Irrigation Promotion Cell to promote drip/sprinkle irrigation system
among Farmers. Further, it is directed to submit details of two
projects taken up in Dakshina Kannada and Udupi Districts with the
results of the study to the Commission early.
6.20 Directive on reduction in the Distribution Losses
It is the Commission’s view that ESCOMs can reduce distribution
losses to a significant level by taking up certain improvements in
the existing distribution networks. The State Level Advisory
Committee of the Commission has also discussed these issues on
more than one occasion, and suggested specific measures which
should be taken by ESCOMs to substantially reduce the distribution
losses. Considering the obvious need for the ESCOMs in the State
to launch a major drive in this regard, and after considering
appropriate technical advice, the Commission directs the ESCOMs to
take up the following measures during the current year:
(i) Implementation of HVDS
In view of the obvious benefits in the introduction of HVDS in
reducing distribution losses, the Commission directs that MESCOM
shall implement High Voltage Distribution System in at least one
O&M Division in a Rural area in its jurisdiction.
(ii) Demand Side Management in Agriculture
In view of the urgent need for conserving energy for the benefit of
the consumers in the State, the Commission directs that MESCOM
shall take up replacement of inefficient pumps with energy efficient
pumps approved by the Bureau of Energy Efficiency, at least in one
Sub-Division in its jurisdiction during the Financial Year 2012.
(III) Optimizing Transformer Capacities
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The Commission directs that ESCOMs should undertake a
systematic audit of transformer loads in each Sub-Division on a
quarterly basis and ensure that transformers installed are of
optimum capacity, keeping in view the load to be serviced.
MESCOM shall report the results of the audit to the Commission
with effect from the last quarter of the calendar year 2011.
Compliance by MESCOM
(i) Implementation of HVDS
MESCOM has about 41,222 Km of 3 ph. lines and 28,886 Km of
single ph. lines across its jurisdiction. Since there is huge single
phase circuits, MESCOM is intending to introduce HVDS by procuring
single phase transformers for which orders for procurement of 50
single phase transformers have already been placed with M/s
KAVIKA which is expected to be supplied by March-12. Further,
MESCOM has also initiated action for GIS survey of all its distribution
transformers for development of a reliable TC data base. MESCOM
has identified Puttur Division for implementation of HVDS. Based on
the study, DPR will be prepared in the next 3 to 4 months.
(ii)Demand Side Management of Agriculture:
MESCOM has selected two feeders, one Kabaka in Puttur divison
and another Manai in Uudpi Division, for pilot implementation of
energy efficient pumps. GIS mapping of these feeders has been
completed and validation of the data is in progress. Replacement
of MNR and faulty meters of all the IP sets of these feeders is
completed. Now, twelve months of data analysis of these feeders
are required. Thereafter, process of providing the energy efficient
pumps to all IP set installations in the feeders will be considered
through PPA model.
(iii) Optimizing Transformer Capacities:
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MESCOM has taken up GIS survey of all its distribution transformers
for development of a reliable TC data base the results of which will
be available in the next 3 to 4 months.
Commission’s Views
The Commission directs MESCOM to formulate a time bound action
plan to implement the above measures which will substantially
reduce the distribution losses. As regards implementation of HVDS,
the Commission has issued detailed Guidelines / Methodology to
ESCOMs vide its letter No 23/12/499 dated 19.03.2012 by
entrusting the study to M/s PRDCL. MESCOM is directed to follow
these guidelines and immediately take up implementation of HVDS
programme in its jurisdiction without any further loss of time and
report the progress/compliance to the Commission.
The progress achieved in regard to demand side management in
agriculture is not adequate. Also, the Commission is of the view
that sufficient action has not been taken in respect of optimizing
transformer capacities and directs MESCOM to conduct the
systematic audit in each Sub-Division expeditiously and submit the
results of the audit to the Commission immediately.
6.21 Improving the quality and reach of service and adoption of a customer-oriented approach in business through;
The quality of service provided by the ESCOMs is in need of urgent
improvement to meet the expectations and needs of the
consumers. The Commission has also noted that a large number of
vacancies in the field staff of the ESCOMs and non-availability of
materials on a timely basis are two important factors constraining
the ESCOMs in providing quality service by undertaking
maintenance of the distribution network and attending to the
complaints of the consumers. The Commission views the matter
seriously and directs the ESCOMs to take the following measures
expeditiously:
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(i) Recruitment of Field Staff
The Commission, directs that MESCOM shall fill up at least 50
percent of the vacancies in the cadres of Junior Engineers, Linemen
and Assistant Linemen during the Financial Year 2012. MESCOM
shall submit to the Commission a report on the action being taken
to fill up the vacancies as above in the specified time limit.
Compliance by MESCOM
It is to be submitted that, the process of recruitment of 346
numbers of Assistant Linemen is in progress. Further, a request for
recruitment of about 251 numbers of AEs/JEs / AAOs has been
forwarded to the Government for approval.
(ii)Service Centers for improved Responsiveness:
MESCOM shall introduce the system of adequately equipped
“Service Centers” at least in two Rural sub Divisions during the
current year and report the results of its operations along with
details of additional expenditure to the Commission.
Compliance by MESCOM
It is to be submitted that, all major towns / cities in MESCOM are
having round the clock service stations with vehicle facility and
others major load centers have been provided with 12 Hours service
station with vehicle facility.
(iii) Customer-Oriented Approach in Service:
MESCOM shall prepare a detailed training schedule for their
Operational and Administrative staff, so that each field level
functionary undergoes training at least once in a period of two
years.
Compliance by MESCOM
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It is to be submitted that, MESCOM is imparting training to its field
officers on regular basis. In Fy-12 (upto Dec-11) MESCOM has
imparted training to 1246 employees in various cadres.
Commission’s views
The Commission appreciates the action taken by MESCOM for
preparing a training schedule for imparting training to its
Operational and Administrative staff. The Commission desires that
this is an important programme aimed at motivating the employees
and increasing their effectiveness by upgrading their skill level, it
shall be continued without any let up. The implementation of this
programme shall be monitored at corporate level for its usefulness
and reported to the Commission.
6.22 Measures to improve financial viability
(i) Recovery of Arrears of Receivables
The arrears of receivables to the MESCOM from various consumers
including the Local Bodies is to the tune of Rs.370.60 crores as on
31.3.2011. The Commission is of the view that the realization of
these arrears is crucial to the financial viability of the ESCOMs. The
Commission, therefore directs that the MESCOM should immediately
take up the recovery of these arrears with Government’s
assistance, so that at least 33 percent of the arrears outstanding as
on 31.3.2011 are realised every year over the next three years.
Compliance by MESCOM
It is to be submitted that, receivables as at the end of Mach-11 is
Rs.330.73 Crores out of which recoverable amount is Rs.317.16 Cr.
The break up of receivables is as below;
1. Water Supply & Street Light Installations : Rs.128.98 Cr.
2. IP set dues (From Apr-03 to Jun-08) : Rs.147.00 Cr.
3. Other installations. : Rs.41.18 Cr.
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In respect of item (1), GoK has been addressed vide this office letter
No.10601-02 Dt.19-01-2012. In respect of item (2) & (3), the circles
Superintending Engineers (Ele) have been directed to initiate action
for recovery of dues.
(ii) Sub-Divisions as Strategic Business Units
The present organizational set up of ESCOMs at the field level
appears to be mainly oriented to maintenance of power supply
without a corresponding emphasis on realization of revenue. This
has resulted in a serious mismatch between the power supplied,
expenditure incurred and revenue realised in many cases. The
continued viability of the ESCOMs urgently calls for a change of
approach in this regard, so that the field level functionaries are
made accountable for ensuring realization of revenues
corresponding to the energy supplied in their jurisdiction.
The Commission directs that MESCOM shall introduce the system of
Cost-Revenue Centre Oriented Sub-Divisions at least in two
Divisions in its operational area and report results of the experiment
to the Commission.
Compliance by MESCOM
It is to be submitted that, MESCOM has identified two Divisions one
in Mangalore Circle – Puttur Division and one in Shimoga Circle –
Shimoga Division for introduction of Cost-Revenue Centre Oriented
Sub Division. The modalities of bifurcation and drawing
expenditures along the relevant account heads are in progress.
Hon’ble Commission will be apprised of the results at the earliest.
Commission’s views
The Commission directs that MESCOM shall continue the efforts for
realization of arrears without any let up and monitoring of this
activity through coordinated efforts at each Sub-Division, Division
and Circle levels shall be reviewed at corporate level regularly for
its effectiveness. As for introducing the strategic business unit
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concept MESCOM shall expedite the process and implement it early
and report the compliance to the Commission.
6.23 Summary of Tariff Order 2012:
The Commission has approved an ARR of Rs.1828.43 Crores as
against MESCOM’s proposed ARR of Rs.1878.06 Crores.
The revenue gap as worked out by the Commission is Rs. 50.02
Crores as against MESCOM’s estimated gap of Rs. 217.79
Crores.
The Commission has allowed additional revenue of Rs.50.02
Crores on tariff Revision as against the proposed additional
revenue of Rs.217.79 Crores.
Approved increase in revenue is 3% against MESCOM’s proposed
increase of 12 %.
MESCOM had proposed an increase of 73 paise for all categories
of consumers other than BJ/KJ & IP Sets. The Commission has
increased tariff for IP Sets and domestic category by 10paise per
unit and the increase in tariff for other categories is at 20paise
per unit.
Considering the importance of providing drinking water supply
under LT Category, the Commission has reduced the tariff for LT
Water Supply installations by 50paise per unit. Also the
Commission has retained the tariff for water supply installations
under HT category at existing levels.
While determining the revenue gap for FY13, an amount of Rs.
10.00 Crores of Regulatory Asset set aside in the previous tariff
order has been absorbed in the revision of tariff.
Time of the day tariff is made mandatory for installations under
HT2 (a) and HT2(b) with contract demand of 500KVA and above.
The existing ToD on optional basis for categories under LT5, HT1
and HT2(a) & HT2(b) with sanctioned load/contract demand of
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less than 500KVA will continue. The reduction of 125 paise per
unit is continued for consumption in the off peak period in this
system.
In this Tariff Order, the Commission has reintroduced the cross
subsidy surcharge payable by open access consumers.
The Commission has also decided to introduce a mechanism for
recovery of Fuel Cost Adjustment charge. Separate order in the
matter will be issued in due course.
Green Tariff introduced in the previous tariff order for HT
Industries & HT Commercial Consumers at their option, to
promote purchase of energy from Renewable Sources and to
reduce carbon footprint is continued. Consumers opting for
green tariff have to Pay Re. 1.00/unitover and above the normal
tariff.
A new HT tariff category namely HT5 is introduced for
consumers availing temporary supply with a demand of 67HP or
more.
The existing Tariff categories HT4 (a) and HT4 (b) for Residential
purpose in urban and rural areas respectively are merged as
HT4 which is applicable to all areas of the ESCOMs.
As in the previous Order, the Commission has continued to
provide a separate fund for facilitating better Consumer
Relations /Consumer Education Programs.
The cap on short-term power at Rs.4 per unit to meet shortfall in
supply is continued.
6.24 Commission’s Order
1. In exercise of the powers conferred on the Commission
under Sections 62, 64 and other provisions of the
Electricity Act 2003, the Commission hereby determines
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and notifies the distribution and retail supply tariff of
MESCOM for FY13 as stated in Chapter-5 of this Order.
2. The tariff determined in this order shall come into effect
for the electricity consumed from the first metering date
falling on or after 30th April 2012.
3. This order is signed dated and issued by the Karnataka
Electricity Regulatory Commission at Bangalore this day,
the 30th April 2012
Sd/- Sd/- Sd/- (M.R.Sreenivasa Murthy) (Vishvanath Hiremath) (K.Srinivasa Rao)
Chairman Member Member