ODISHA ELECTRICITY REGULATORY COMMISSION

BIDYUT NIYAMAK BHAWAN

PLOT NO. 4, CHUNOKOLI,
SHAILASHREE VIHAR, BHUBANESWAR-751021
************

Present : Shri U. N. Behera, Chairperson

Shri S. K. Parhi, Member
Shri Gajendra Mohapatra, Member

CASE NOS. 75, 76, 77 & 78 of 2020

DATE OF HEARING : 15.02.2021 at 3.00 P.M (TPWODL),

17.02.2021 at 10.30A.M (NESCO Utility),
19.02.2021 10.30A.M (TPSODL)
18.02.2021 at 10.30 A.M (TPCODL)

DATE OF ORDER 26.03.2021

IN THE MATTER OF: Applications of Distribution Utilities TPCODL, NESCO

Utility, TPWODL and TPSODL for approval of their
Aggregate Revenue Requirement (ARR), Wheeling Tariff
and Retail Supply Tariff for the FY 2021-22 under Sections
62 and 64 and other applied provisions of the Electricity
Act, 2003 read with relevant provisions of OERC (Terms
and Conditions for determination of Wheeling and Retail
Supply Tariff) Regulations, 2014 and OERC (Conduct of
Business) Regulations, 2004 and other Tariff related
matters.

AND

CASE NOs. 79, 80, 81 & 82(A) of 2020

DATE OF HEARING : 15.02.2021 at 3.00P.M (TPWODL),

17.02.2021 at 10.30A.M (NESCO Utility),
19.02.2021 10.30A.M (TPSODL)
18.02.2021 at 10.30 A.M (TPCODL)

IN THE MATTER OF: Applications under Section 42 of the Electricity Act, 2003
read with OERC (Terms and Conditions of Intra-State
Open Access Charges) Regulations, 2020 for approval of
Wheeling Charges, Cross Subsidy Surcharge and
Additional Surcharge for FY 2021-22 of DISCOMs namely
TPWODL, NESCO Utility, TPSODL and TPCODL.
ORDER
1. The Distribution Utilities in Odisha namely TPCODL (erstwhile CESU), TPWODL
(erstwhile WESCO Utility), TPSODL (erstwhile SOUTHCO Utility) and NESCO
Utility and are carrying out the business of distribution and retail supply of electricity

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 in their licensed areas as detailed below:
Table – 1
Sl. Name of Licensed Areas (Districts) %age Nos. of
No. DISCOMS area of the Consumer
State as on
01.04.2020
(as submitted
by licensees)
1. TPCODL Puri, Khurda, Nayagarh, Cuttack, Denkanal, 18.9 2697335
Jagatsinghpur, Angul, Kendrapara and some part of
Jajpur.
2. TPWODL Sambalpur, Sundargarh, Bolangir, Bargarh, Deogarh, 32.3 1974833
Nuapara, Kalahandi, Sonepur and Jharsuguda.
3. TPSODL Ganjam, Gajapati, Kandhamal, Boudh, Rayagada, 30.8 2279223
Koraput, Nawarangpur and Malkanagiri.
4. NESCO Mayurbhanj, Keonjhar, Bhadrak, Balasore and major 18.0 1906556
Utility part of Jajpur.
Odisha Total 100.0 8857947

On the applications of the above Distribution licensees of the State, the Commission
initiated proceedings for determination of their Aggregate Revenue Requirement
(ARR), Wheeling Tariff and Retail Supply Tariff (RST) for FY 2021-22 under
relevant provisions of the Electricity Act, 2003, OERC (Terms and Conditions for
Determination of Wheeling Tariff and Retail Supply Tariff) Regulations 2014 and
OERC (Conduct of Business) Regulations, 2004. By this common Order, the
Commission considers aforesaid Aggregate Revenue Requirement (ARR), Wheeling
Tariff, RST applications of the above mentioned Distribution Utilities and other
related tariff matters including Open Access Charges.

PROCEDURAL HISTORY (PARA 2 TO 15)

2. The Commission vide order dated 04.03.2015 in Suo Motu proceeding Case No.
55/2013 had revoked the licenses granted to NESCO, WESCO & SOUTHCO under
Sec. 19 of the Electricity Act, 2003 due to failure in meeting license requirements and
had appointed the CMD, GRIDCO Limited as the Administrator under Section 20 (d)
of the said Act, 2003 and had vested the management and control of NESCO, WESCO
& SOUTHCO Utilities along with their assets, interests and rights with the Chairman-
cum-Managing Director, GRIDCO Limited in order to ensure the maintenance of
continued supply of electricity in the Northern, Western and Southern Zone in the
interest of consumers. Another DISCOM CESU was being managed through a
Scheme as per Section 22 (1) of the Electricity Act, 2003 due to exit of AES the

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 erstwhile majority shareholder. Subsequently, the Commission under Section 21 of the
Electricity Act, 2003 by its order dated 26.05.2020 in Case No.11 of 2020 has vested
the Utility of CESU with TP Central Odisha Distribution Limited (TPCODL).
Similarly the Commission under Section 21 of the Electricity Act, 2003 by its order
dated 28.12.2020 in Case No.82 of 2020 and 83 of 2020 has vested the Utility of
WESCO and SOUTHCO with TP Western Odisha Distribution Limited (TPWODL)
and TP Southern Odisha Distribution Limited (TPSODL) respectively.

3. TPCODL projections in this ARR would be based on the Balance Sheet inherited
through the Vesting Order dated 28th May 2020, instead of the Balance sheet on 31st
March 2020 as was done in the past filings by CESU.

4. The said Aggregate Revenue Requirement (ARR)& Retail Supply Tariff applications
were duly scrutinized and registered as Case Nos.75/2020 (WESCO Utility), 76/2020
(NESCO Utility), 77/2020 (SOUTHCO Utility), and 78/2020 (TPCODL/CESU)
respectively.

5. As per the direction of the Commission, applicants have published the Aggregate
Revenue Requirement (ARR), Wheeling & RST tariff Applications in the prescribed
formats in the leading and widely circulated Odia and English newspaper in their area
of supply in order to invite objections/suggestions from the general public. The above
applications were also posted in the Commission’s website www.orierc.org including
the website of the Distribution Utilities. The Commission had also directed the
applicants to file their respective rejoinder to the objections filed by the all the
objectors.

6. In response to the said public notices, the Commission received applications from the
following persons/ associations/ institutions/ organizations as mentioned below against
each of the respective distribution licensees to participate in the hearing. The dates for
hearing were fixed and it was duly notified in the leading English and Odia daily
newspaper mentioning the date, place and time of hearing along with the names of the
objectors. The Commission issued notice to the Govt. of Odisha represented by the
Department of Energy to send their authorized representative to take part in the
hearing of the ensuing tariff proceedings. As the proceedings were held in the supply
area of the utilities except TPWODL, the Commission had also directed the applicants
to make further publications of Public Notice mentioning date, time and the place of

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 hearing to facilitate the consumers who have not submitted their views earlier for spot
registration at the hearing venue and to participate in the tariff proceedings of the
distribution utilities for FY 2021-22.

On TPCODL’s application:

7. (1) M/s. Pragati Milk Product Pvt. Ltd., Plot No.71/A/1 and 71/A, New Industrial
estate, Jagatpur, Cuttack-754021, (2) Shri Akshya Kumar Sahani, Retd. Electrical
Inspector, GoO, B/L-108, VSS Nagar, Bhubaneswar-751007,(3) Dy.Chief Electrical
Engineer, M/s. East Coast Railway, Rail Sadan, Chandrasekharpur, Bhubaneswar-
751017, (4) Sri Ananda Kumar Mohapatra, Power Analyst, S/O. Jachindranath
Mohapatra, Plot No.639/1021, Lane-2, Laxmi Vihar, P.O: Bankual, Tankapani Road,
P.S: Saheed Nagar, Bhubaneswar, Dist.-Khurda-751002, (5)Odisha Retaired Power
Engineers’ Forum, C-7640, Bhoi Nagar, Bhubaneswar-751022, (6) M/s.Grinity Power
Tech Pvt. Limited, At-K-8-82, Kalinga Nagar, Ghatikia, Bhubaneswar-751029,(7) Sri
Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour & President,
Upobhokta Mahasangha,, Plot No.302(B), Beherasahi, Nayapalli, Bhubaneswar-
751012, (8) M/s. Indian Energy Exchange, Plot No.C-001/A/1, 9th Floor, Max
Towers, Sector-16B, Noida, Gautam Buddha Nagar, Uttar Pradesh-201301,(9) Sri
Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony, Rayagada, Dist.
Rayagada-765001,(10) Shri R.P. Mahapatra, Retd. Chief Engineer & Member (GEN),
OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-751013,(11) Secretary,
PRAYAS, Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-
411004, India (Consumer Counsel), (12) Secretary, Confederation of Citizen
Association, 12/A, Forest Park, Bhubaneswar-751009 (Consumer Counsel).

All the above named objectors filed their objections/suggestions except objector Nos.
3, 6, 8 and both the Consumer Counsels namely Confederation of Citizen Association,
12/A, Forest Park, Bhubaneswar-751009 and PRAYAS, Energy Group, Amrita Clinic,
Athawale Corner, Carve Road, Pune-411004, India who were also absent during
virtual/physical mode of hearing held at Cuttack on 18.02.2021 at 10.30A.M. and also
had not submitted their written note of submissions for consideration of the same by
the Commission. The Commission heard the applicant, the Objectors, Consumer
Counsels and the representative of Government of Odisha, Department of Energy.

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 On NESCO Utility’s application: -

8. (1) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-108, VSS Nagar,
Bhubaneswa-751007,(2) M/s. Balasore Alloys Limited, Balgopalpur, Balasore-
756020,(3) Principal Chief Electrical Engineer, East Coast Railway Rail Sadan,
Chandrasekharpur, Bhubaneswar-751017,(4) Sri Ananda Kumar Mohapatra, Power
Analyst, S/O. Jachindranath Mohapatra, Plot No.639/1021, Lane-2, Laxmi Vihar, P.O:
Bankual, Tankapani Road, P.S: Saheed Nagar, Bhubaneswar, Dist.-Khurda-751002,
(5) M/s. Grinity Power Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar, Ghatikia,
Bhubaneswar-751029,(6) M/s. Visa Steel Ltd., Kalinga Nagar Industrial Complex,
At/P.O: Jakhapura-755026, Dist.-Jajpur, (7) Shri Ramesh Ch. Satpathy, Secretary,
National Institute of Indian Labour & President, Upobhokta Mahasangha, Plot No.
302(B), Beherasahi, Nayapalli, Bhubaneswar-751012, (8) Er.(Dr.) P. K. Pradhan,
Duplex-244, Manorama Estate, Rasulgarh, Bhubaneswar-751010,(9) M/s. Indian
Energy Exchange, Plot No.C-001/A/1, 9th Floor,Max Towers, Sector-16B, Noida,
Gautam Buddha Nagar, Uttar Pradesh-201301,(10) M/s. Tata Steel Ltd., Kalinga
Nagar Industrial Complex, Duburi, JK Road, Dist.-Jajpur-755026, (11) Shri Prabhakar
Dora, Vidya Nagar, 3rd Line, Co-Operative Colony, Rayagada, Dist. Rayagada-
765001, (12) Sri Prasanta Kumar Panda, District Executive Member, BJP, At-
Goudapada, P.O: Jamujhadi, Via-Simulia, Dist.-Balasore-756126,(13) Shri Nilambar
Mishra, M/s. Odisha Consumer Association, Balasore Chapter (Consumer Counsel),
At/Po-Rudhunga, Via/Ps-Simulia, Dist-Balasore-756126,(14) Secretary, PRAYAS,
Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India
(Consumer Counsel),(15) the representative of Govt. of Odisha, Department of
Energy, Govt. Bhubaneswar and (15) Sri Prasanta Kumar Sahoo, M/s. MSP Sponge
Iron Ltd., Keonjhar, (16) Sri Ajay Kumar Mallick, M/s. Rungta Mines, (17)Sri Bikash
Das, M/s. Crakers India Ltd. registered their names at the venue for hearing through
hybrid mode at Durbar Hall, Collectorate, Keonjhar on 17.02.2021 at 10.30 A.M.

All the above named objectors filed their objections/suggestions except Objectors Nos.
3, 5 and 9 and the Consumer Counsel- PRAYAS, Energy Group, Amrita Clinic,
Athawale Corner, Carve Road, Pune-411004, India who were not present during tariff
hearing at Keonjhar through Virtual/physical Mode and also have not filed any
objection. All the written submissions filed by the objectors were taken on record and
also considered by the Commission. The Commission heard the applicant, the

5
 Objectors, Consumer Counsel, Balasore Chapter and those who were present during
hearing through virtual mode.

On TPWODL’s application:

9. (1) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-108, VSS Nagar,
Bhubaneswar-751007,(2) Principal Chief Electrical Engineer, East Coast Railway Rail
Sadan, Chandrasekharpur, Bhubaneswar-751017,(3) Sri Ananda Kumar Mohapatra,
Power Analyst, S/O. Jachindranath Mohapatra, Plot No.639/1021, Lane-2, Laxmi
Vihar, P.O: Bankual, Tankapani Road, P.S: Saheed Nagar, Bhubaneswar, Dist.-
Khurda-751002,(4) M/s. Top Tech Steels Pvt.Ltd., At-Hatibari Road, Kuamunda,
Vedvyas, Rourkela, Odisha-770039,(5) M/s. Grinity Power Tech Pvt. Ltd., At-K-
8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029, (6) M/s. Shree Salasar Castings
Pvt. Ltd., Regd. Office-Balanda, Po-Kalunga, Dist-Sundargarh-770031,(7) M/s. D. D.
Iron & Steel (P) Limited, H-4/5, Civil Township, Rourkela-769004, Dist-Sundargarh,
(8) M/s. Bajaranga Steel & Alloys Ltd.,At/P.O: Kalunga,Sundargarh, Odisha-770031,
(9) M/s. Maa Girija Ispat (P) Ltd., Regd. Off-BB-2, Ground Floor, Civil Township,
Rourkela-769004, Dist-Sundargarh, (10) Sri Ramesh Ch. Satpathy, Secretary,
National Institute of Indian Labour & President, Upobhokta Mahasangha, Plot
No.302(B), Beherasahi, Nayapalli, Bhubaneswar-751012, (11) M/s. Shri Radha
Krishna Ispat(P) Ltd., Plot No.19,P Goi Bhanga, Kalunga, Sundargarh-770031,(12)
Er.(Dr) Prasanta Kumar Pradhan, Duplex-244, Monorama Estate, Rasulgarh,
Bhubaneswar-751010,(13) M/s. Refulgent Ispat Pvt. Ltd., At-Chikatmati, P.O:
Belhidi, Sundargarh-770031, Odisha, (14) M/s. Scan Steels Limited, At- Mainroad,
Rajgangpur, Dist.-Sundargarh-770017,(15) M/s. Indian Energy Exchange, Plot No.C-
001/A/1, 9th Floor,Max Towers, Sector-16B, Noida,Gautam Buddha Nagar, Uttar
Pradesh-201301, (16) Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative
Colony, Rayagada, Dist. Rayagada-765001,(17) M/s. Vedanta Limited, At-
Bhurkamunda, P.O: Kalimandir, Dist.-Jharsuguda, Odisha-768202, (18) Sambalpur
District Consumers Federation, Balaji Mandir Bhavan, Kheterajpur, Sambalpur-
678003 (Consumer Counsel),(19) Sundargarh District Employee Association, AL-1,
Basanti Nagar, Rourkela.- 769012 (Consumer Counsel), (20) Secretary, PRAYAS,
Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India
(Consumer Counsel).

All the above named objectors filed their objections/suggestions except Objectors

6
 Nos.15, & 17 and the Sambalpur District Consumers Federation, Balaji Mandir
Bhavan, Kheterajpur, Sambalpur-678003, Sundargarh District Employee Association,
AL-1, Basanti Nagar, Rourkela.- 769012 and PRAYAS, Energy Group, Amrita Clinic,
Athawale Corner, Carve Road, Pune-411004, India who were not present during tariff
hearing through virtual mode in the Office of the Commission on 15.02.2021 at
3.00P.M and also had not filed any objection. All the written submissions filed by the
objectors were taken on record and also considered by the Commission. The
Commission heard the applicant, the Objectors, Consumer Counsels and the
representative of Govt. of Odisha, Department of Energy.

On TPSODL application:

10. (1) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-108, VSS Nagar,
Bhubaneswar-751007,(2) M/s. Maa Bana Devi Polutry Pvt. Ltd., At/P.O: Nuagoan,
Via-Aska, Dist.-Ganjam-761010, (3) Principal Chief Electrical Engineer, East Coast
Railway Rail Sadan, Chandrasekharpur, Bhubaneswar-751017, (4) Sri Ananda Kumar
Mohapatra, Power Analyst, S/O. Jachindranath Mohapatra, Plot No.639/1021, Lane-2,
Laxmi Vihar, P.O: Bankual, Tankapani Road, P.S: Saheed Nagar, Bhubaneswar, Dist.-
Khurda-751002, (5) M/s. Grinity Power Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar,
Ghatikia, Bhubaneswar-751029,(6) Sri Ramesh Ch. Satpathy, Secretary, National
Institute of Indian Labour & President, Upobhokta Mahasangha, Plot No.302(B),
Beherasahi, Nayapalli, Bhubaneswar-751012, (7) M/s. Indian Energy Exchange, Plot
No.C-001/A/1, 9th Floor,Max Towers, Sector-16B, Noida, Gautam Buddha Nagar,
Uttar Pradesh-201301, (8) Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative
Colony, Rayagada, Dist. Rayagada-765001, ( 9) Grahak Panchayat, Friends Colony,
Paralakhemundi, Dist-Gajapati-761200(Consumer Counsel), (10) Secretary,
PRAYAS, Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-
411004, India(Consumer Counsel).

As the proceeding was held at DRDA Conference Hall at Chhatrapur, Ganjam in the
supply area of the Distribution utility, the Commission had also directed the applicant
to make further publications of Public Notice mentioning date, time and the place of
hearing to facilitate the consumers those who had not submitted their views earlier for
spot registration at the hearing venue and to participate in the tariff proceedings of the
distribution utilities for FY 2021-22. Accordingly, the following persons/
organizations had registered their names on the date of hearing and participated in the

7
proceedings on that date and time (1) Shri Rabindra Kumar Swain, Berhampur, (2) Sri
B. Jagadish Kumar, Berhampur, (3) Sri Durga Prasad, the authorized Director, M/s.
Velstone Tech India Pvt. Ltd., (4) Sri Krushna Choudhury, Berhampur, (5) Sri Sarat
Chandra Swain, Berhampur, (6) Er .Asok Kumar Bhukta, President of Southern
Odisha Electrical Contractors Association along with 11 number of its members,
Gajapati Nagar, 1st Lane, Berhampur-760010, Ganjam, (7) Sri Nilakantha Dash,
S/o.late Lingaraj Dash, At-Patpur, Chatrapur, Dist.-Ganjam, (8) Sri Sankar Prasad
Dash, S/o. Kanhei Dash, At-Samantarapur, Chatrapur, Ganjam-761020, (9) Sri
Judhistir Behera, Vice President,SOUTHCO Bijuli Upvokta Sangha, Berhampur, At-
Sidhartha nagar, Berhampur, Dist.-Ganjam-760002, (10) Sri Panchanana Jena,
Working President, Bijuli Karmachari Sangha, At-Hill Patna, Berhampur-760003 (11)
M/s. Odisha Cold Storage Association, Berhampur, Ganjam, (12) Sri B. Srinivas &
Sri K. B. Maity, M/s. Ferro Chrome Plant, M/s. Tata Steel Limited,(13) Sri V.V.
Narayan Reddy, Park Street, Chatrapur, Dist.-Ganjam-761020, (14) Sri Sandeep
Patnaik, M/s. Gopalpur Ports Ltd., Bada Anjipalli-761045, Dist.-Ganjam, (15) Sri A.
K. Das, M/s. Gopalpur Light House, P.O: Gopalpur on sea,Dist.-Ganjam-761002, (16)
Sri Himanshu Mishra, M/s. Suntek Industries, Near Grasim Industry Ltd.,Dist.-
Ganjam-761025,(17) Sri Aditya Narayan Mishra, Advocate, At-Mushulikanti Sahi,
Chatrapur-761020 (18) Sri Ajay Kumar Nayak,M/s. Harika Chemical Pvt.Ltd.,Plot
No.2490, Jayshree, Ganjam-761025, (19) Sri Brijesh Mor, M/s. Chilika Cashew
Industry, At-Subalaya, Ganjam-761027,(20) Sri Nilakantha Dash,At-Patrapur,
Chatrapur, P.O: Sundarpur, Dist.-Ganjam, (21) Sri Gyan Ranjan Kar, M/s. Saraf
Agencies Pvt. Ltd., At-Chatrapur, Dist.-Ganjam-761020,(22) Sri Ashok Bhukta, At-
Mandiapally, Berhampur, Ganjam-760007, (23) Sri Prakash Nayak, United
Electricals, Berhampur-760003, (24) Sri Aditya Narayan, At-Musulikanti Sahi,
Chatrapur, Dist.-Ganjam-761020, (25) Sri Sankar Prasad Dash, S/o-Khanki Dash, At-
Somanathpur, Chhatrapur-761020, Dist.-Ganjam,(26) Sri Sudhansu Padhi,At-
Ramanagar, Kamapalli,Berhampur-760004,(27) Sri Niranjan Behera, Neelanchala
Nagar, Berhempur – 760005, (28) Sri P. Rajendra Prusty, M/s Narayan Cashew
Industry at Rambha, Ganjam 760628, (29) Sri Godavarish Panigrahi, M/s S D Marine
Shrump Hatchery, At-Hunjana, Ramalenka, Puri, (30) Sri Laxmidhar Sahu, Ex-
Chairman, Krushnaprasad, Dist-Puri-752032 (31) Sri Anchala Kumar Biswal, At/po-
Ramalenka, Dist-Puri – 752032, (32) Sri Pradeep Kumar Majhee, P.S. Member,
Krushnaprasad, Dist-Puri – 752032 (33) Sri Abhaya Kumar Mohapatra, AT/Po-

8
 Badajhada, Dist-Puri – 752032, (34) Sri Sarat Kumar Sahu, BJP Secretary, Dist V.P.
(35) Sri Ananta Narayan Sahu, Intellectural Consumers, Berhempur, Ganjam. (36) Sri
S. K. Subudhi & Epari Bulu Rao, M/s J P Mushroom Farm, Chamakhandi,
Chhatrapur, Ganjam.

All the above named objectors those who filed their objections/suggestions and also
those who registered their names at the venue and were physically present during
hearing except M/s. East Coast Railway, M/s. Grinity Power Tech Pvt. Ltd., M/s.
Indian Energy Exchange, Grahak Panchayat, PRAYAS, Sri Rabindra Kumar Swain,
Sri B. Jagadish Kumar, Sri Durga Prasad, Sri Krushna Choudhury,Sri Sarat Chandra
Swain, Sri V. V. Narayan Reddy, M/s. Harika Chemical Pvt.Ltd., M/s. Chilika
Cashew Industry, M/s. Saraf Agency Pvt. Ltd., Sri Aditya Narayan, Sri Sundhansu
Padhi and M/s. Narayan Cashew Industry and both the Consumer Counsels who had
also not submitted their written note of submissions for consideration by the
Commission. The Commission heard the applicant, the Objectors those have filed their
objections and also those have registered their names and were present during hearing
through virtual/physical mode on the DRDA Conference Hall at Chhatrapur, Ganjam
on 19.02.2021at 10.30A.M. along with WISE, the Consumer Counsel appointed by the
Commission for tariff proceedings.

The following Consumer Counsels were appointed by the Commission.

Table – 2
Sl. Name of the Organisations/persons acting as
Name of the Distribution Utility
No. Consumer Counsels with address
Orissa Consumers’ Association, Balasore
1 NESCO Utility
Chapter, Balasore
Sambalpur District Consumers’ Federation,
2 TPWODL
Balaji Mandir Bhavan, Khetrajpur, Sambalpur
Sundargarh District Employee Association, AL-
3 TPWODL
1, Basanti Nagar, Rourkela
Grahak Panchayat, Friends Colony,
4 TPSODL
Parlakhemundi, Dist : Gajapati
Secretary, Confederation of Citizen Association,
5 TPCODL
12/A, Forest Park, BBSR-9.
TPCODL, NESCO Utility,
6 The Secretary, PRAYAS Energy Group, Pune
TPWODL and TPSODL

11. Distribution Utilities of Odisha had filed their application for wheeling charges,
surcharges and additional surcharges for financial year 2021-22 under Section 42 of
the Electricity Act, 2003 read with OERC (Terms and Conditions of Intra-State Open

9
 Access Charges) Regulations, 2020 for approval of Wheeling Charges, Cross Subsidy
Surcharge and Additional Surcharge for FY 2021-22 which were registered as Case
Nos. 79, 80, 81 & 82(A) of 2020. The Commission had directed the DISCOMs to
publish the Public Notice regarding their application in widely circulated Odia and
English newspaper inviting views/ suggestion of the public. The Commission had also
posted a copy of their applications in its website. The following persons have filed
their views / objections in response to such public notice.

12. Sri Ananda Kumar Mohapatra, Power Analyst, S/O. Jachindranath Mohapatra, Plot
No.639/1021, Lane-2, Laxmi Vihar, P.O: Bankual, Tankapani Road, P.S: Saheed
Nagar, Bhubaneswar, Dist.-Khurda-751002,(2) M/s. Grinity Power Tech Pvt. Ltd., At-
K-8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029,(3) Er.(Dr) Prasanta Kumar
Pradhan, Duplex-244, Monorama Estate, Rasulgarh, Bhubaneswar-751010,(4) M/s.
Vedanta Limited, 1st Floor, C-2, Fortune Tower, Chandrasekharpur, Bhubaneswar-
751023, (5) M/s. Grinity Power Tech Pvt. Ltd., At-K-8-82, Kalinga Nagar, Ghatikia,
Bhubaneswar-751029.The said filings are also taken on record and duly considered by
the Commission.

13. The Commission took up Case Nos. 79, 80, 81 & 82(A) of 2020 together with the
applications of the Distribution Utilities for determination of ARR, Wheeling Tariff &
Retail Supply Tariff for FY 2021-22 for analogues hearing as the matters are inter
related to fixation of tariff of the utilities and posted the matters for hearing through
virtual mode in the Hearing Hall of its premises at Bhubaneswar on 15.02.2021 at 3.00
P.M. for TPWODL, on 17.02. 2021 at 10.30 A.M for NESCO Utility at Durbar Hall,
Collectorate, Keonjhar, on 18.02.2021 at 10.30 A.M for TPCODL at Sarala Bhawan,
Cuttack and on 19.02.2021 at 10.30 A.M for TPSODL at DRDA Conference Hall at
Chhatrapur, Ganjam with due notice to the applicants and the objectors.

14. During virtual hearing on Open Access Charges the following persons were present on
behalf of applicants and the objectors:

The representatives of TPCODL, NESCO Utility, TPWODL,TPSODL and OPTCL,

Sri Ananda Kumar Mohapatra, Power Analyst, S/O. Jachindranath Mohapatra, Plot
No.639/1021, Lane-2, Laxmi Vihar, P.O: Bankual, Tankapani Road, P.S: Saheed
Nagar, Bhubaneswar, Dist.-Khurda-751002, M/s. Grinity Power Tech Pvt. Ltd., At-K-
8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029, Er.(Dr) Prasanta Kumar

10
 Pradhan, Duplex-244, Monorama Estate, Rasulgarh, Bhubaneswar-751010,
st
M/s.Vedanta Limited, 1 Floor, C-2, Fortune Tower, Chandrasekharpur,
Bhubaneswar-751023, M/s. Grinity Power Tech Pvt. Ltd., At-K-8-82, Kalinga Nagar,
Ghatikia, Bhubaneswar-751029.The filings made by the parties were taken on record
and also considered by the Commission.

15. The Commission heard the applicants, objectors and the representative of the DoE,
Government of Odisha through virtual mode at length. Parties were directed to file
their written note of submission by 25.02.2021.

The Commission convened the State Advisory Committee (SAC) meeting on

22.02.2021 at 11.00 AM at its premises to discuss about the Aggregate Revenue
Requirement, Wheeling Tariff and Retail Supply Tariff application proposals of the
Distribution Utilities. The Members of SAC, Special Invitees, the Representative of
DoE, Government of Odisha actively participated in the discussion and offered their
valuable suggestions and views on the matter for consideration of the Commission.

ARR & RETAIL SUPPLY TARIFF PROPOSAL FOR 2021-22 (PARA 16 TO 42)

Energy Sales and Purchase

16. A statement of Energy Purchase and Sales by the DISCOMs from FY 2019-20 upto
FY 2021-22 as submitted by the DISCOMs of Odisha namely TPCODL, TPWODL,
TPSODL and NESCO Utility are given below:

Table - 3
Energy Sales and Purchase
EHT HT LT TOTAL
TPCODL Actual Sales during 2019-20 1,040.23 1,419.96 3,813.00 6,273.19
Approved Sales for FY 2020-21 937.83 1,559.96 4,794.11 7,291.90
Estimated Sales for FY 2020-21 884.38 1,161.91 4,277.74 6,324.03
Proposed Sales for FY 2021-22 905.23 1,340.21 4,684.68 6,930.12
Proposed rise over FY 2020-21 2.36% 15.35% 9.51% 9.58%
TPWODL Actual Sales during 2019-20 1,579.88 1,929.90 2,604.73 6,114.51
Approved Sales for FY 2020-21 1,450.00 1,800.00 3,182.00 6,432.00
Estimated Sales for FY 2020-21 1,300.00 1,750.00 2,930.00 5,980.00
Proposed Sales for FY 2021-22 1360.00 1,800.00 3,335.00 6,495.00
Proposed rise over FY 2020-21 4.62% 2.86% 13.82% 8.61%
TPSODL Actual Sales during 2019-20 488.53 313.51 1,817.94 2,619.97
Approved Sales for FY 2020-21 463.89 333.38 2,240.23 3,037.50
Estimated Sales for FY 2020-21 391.10 227.75 2,185.96 2,804.81
Proposed Sales for FY 2021-22 414.404 230.71 2,397.73 3,042.84
Proposed rise over FY 2020-21 5.96% 1.30% 9.69% 8.49%
NESCO
Actual Sales during 2019-20 2,123.40 444.50 2,154.27 4,722.18
Utility
Approved Sales for FY 2020-21 2,191.44 439.28 2,733.69 5,364.41

11
 EHT HT LT TOTAL
Estimated Sales for FY 2020-21 1,325.28 368.75 2,363.20 4,057.24
Proposed Sales for FY 2021-22 1571.50 395.42 2,677.28 4,644.20
Proposed rise over FY 2020-21 18.58% 7.23% 13.29% 14.47%
TOTAL Actual Sales during 2019-20 5,232.04 4,107.87 10,389.94 19,729.85
Approved Sales for FY 2020-21 5,043.16 4,132.62 12,950.03 22,125.81
Estimated Sales for FY 2020-21 3,900.76 3,508.41 11,756.90 19,166.08
Proposed Sales for FY 2021-22 4,251.14 3,766.34 13,094.69 21,112.16
Proposed rise over FY 2020-21 8.98% 7.35% 11.38% 10.15%
PURCHASE Actual Purchase 2019-20 24,592.07
Estimated purchase 2020-21 25,140.14
Proposed Purchase 2021-22 27,211.93
Sales analysis for FY 2021-22

17. For projecting the energy sale to different consumer categories, the Licensees have
analysed the past trends of consumption pattern for last eighteen years i.e. FY 2001-
2002 to FY 2019-20. In addition, the Licensees have relied on the audited accounts for
FY 2019-20 and actual sales data for the first six months of FY 2020-21. With this, the
four DISCOMs have forecasted their sales figures for the year 2021-22 as detailed
below with reasons for sales growth.

Table - 4
Sales Forecast
Licensee/ LT Sales for 2021-22 HT Sales for 2021-22 EHT Sales for 2021- Total Sales
Utility (Est.) (Est.) 22 (Est.) 2021-22
(MU) % Rise (MU) % Rise (MU) % Rise over (Est.) MU
over over FY20-21
FY20-21 FY20-21
TPCODL/CESU 4684.68 9.51 1340.21 15.35 905.23 2.36 6930.12
Based on estimated load
Based on Judgement
Based on Judgement and factor and new addition.
and development of
Remarks development of category Also include energy
category wise
wise consumers. demand by railway
consumers.
traction (353.12 MU)
NESCO 2677.275 13.29% 395.420 7.23% 1571.505 18.57% 4644.20
UTILITY
The sales in this
The pandemic Covid-19
Increase in demand is category are not yet
has affected the EHT
due to electrification revived on account of
sales of the utility
under SAUBHAGYA, recession in steel &
severely. There are
DDUGJY, RGGVY, mining sector, industrial
Instances like Agreement
BSVY, BGJY and slowdown and
with the Industries has
growth in domestic temporary
been terminated and
Remarks category consumers. closure/disconnection of
Industry is under
Expected growth of sales steel and mining
disconnection.
in others as Allied Agro industries. Adding
Considering the worst of
Activity-prawn further, Covid-19
pandemic is over and
cultivation and re- pandemic. Considering
growth of some EHT
opening of educational the worst of pandemic is
consumer with
and religious institution over and HT consumer
conservative approach.
will revive.
TPWODL 3335.00 13.82% 1800.00 2.85% 1360 4.61% 6495.00

12
 Licensee/ LT Sales for 2021-22 HT Sales for 2021-22 EHT Sales for 2021- Total Sales
Utility (Est.) (Est.) 22 (Est.) 2021-22
(MU) % Rise (MU) % Rise (MU) % Rise over (Est.) MU
over over FY20-21
FY20-21 FY20-21
EHT consumers are
HT Industries who
Impact of electrification drawing power under
regularly opted to draw
of new villages under short term open access for
power under Open
DDUGJY & which the utility has taken
Remarks Access in the past has
SAUBHAGYA, growth conservative approach.
preferred WESCO
in domestic category and EHT sales forecast also
power due to high prices
irrigation consumption includes 437.00 MU for
in IEX.
railway traction
TPSODL 2397.731 9.69% 230.709 1.29% 414.404 5.96% 3042.844
Considering past trends
There has been negative Considering past trends
and Impact of
overall growth during and impact of proposal of
electrification of new
Remarks FY20-21 due to industry M/S TATA STEEL and
villages under RGGVY,
shutdown and drawal by open access drawl by M/S
BSVY, BGJY &
own CGP Grasim Industries.
SAUBHAGYA Schemes.

Rise of BPL Consumers in the State

18. During the past years Odisha has seen a substantial rise in BPL consumers which in
turn is affecting the revenue of DISCOMs as submitted by them while filing their
ARR for FY 2021-22. The trend observed during last year is as given bellow:

Table - 5
Trend of BPL Consumer and their consumption pattern
TPCODL NESCO Utility TPWODL TPSODL
Year No of Consumption Consumption No of Consumption Consumption No of Consumption Consumption No of Consumption Consumption
Consumers MU per Consumers MU per Consumers MU per Consumers MU per
as on 1st consumer as on 1st consumer as on 1st consumer as on 1st consumer
April per Month April per Month April per Month April per Month
(in Unit) (in Unit) (in Unit) (in Unit)
2011-12 42,483 18.58 36.45 1,07,593 18.05 13.98 68,418 37.86 46.12 65,104 40.38 51.69
(Actual)
2012-13 1,01,041 45.88 37.84 1,69,264 38.94 19.17 1,43,740 53.78 31.18 1,50,767 99.34 54.91
(Actual)
2013-14 1,64,864 53.19 26.89 1,69,264 124.31 61.2 2,10,608 62.3 24.65 2,63,345 136.65 43.24
(Actual)
2014-15 1,52,862 62.14 33.88 2,15,528 106.91 41.34 3,18,026 128.45 33.66 3,07,803 186 50.32
(Actual)
2015-16 1,75,671 60.81 28.85 2,09,651 85.07 33.81 2,87,211 143.21 41.55 3,69,028 228 51.46
(Actual)
2016-17 1,80,309 62.36 28.91 1,79,336 77.68 36.1 1,73,966 66 32.03 4,04,454 208 43.05
(Actual)
2017-18 1,52,918 48.09 29.81 1,58,571 48.592 25.54 1,89,853 59.808 26.25 3,63,322 140.58 32.24
(Actual)
2018-19 1,15,978 53.41 38.38 1,47,423 46.02 26.01 2,55,369 62.53 20.41 3,26,639 151 38.52
(Actual)
2019-20 1,03,782 34.18 27.44 1,43,215 41.99 24.43 2,53,257 69.49 22.86 3,99,506 155.02 32.33
(Actual)
2020-21 80,817 39.64 40.88 1,33,950 43.62 27.13 2,31,076 80 28.85 3,64,416 150.77 34.47
(Estimated)
2021-22 1,73,343 53.52 25.73 1,34,849 44.93 27.76 2,81,076 100 29.64 4,00,000 150.77 31.41
(Projected)

Losses
19. The Distribution Loss, Collection Efficiency and AT&C Loss as fixed by OERC and
actual attained by the licensees by the four DISCOMs since FY 2014-15 onwards

13
 along with their proposal for the ensuing year are given hereunder:

Table - 6
Loss Statement of the DISCOMs (in %)
2020-21 2021-22
2020-21
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (Calculat (Proposed
(Approve
(Actual) (Actual) (Actual) (Actual) (Actual) (Actual) ed) by the
d)
Licensees)
DISTRIBUTION LOSS (%)
TPCODL 33.90 33.42 32.57 31.72 28.15 23.12 23.00 26.92 24.63
NESCO
31.10 26.73 23.50 22.28 18.74 13.19 18.35 19.60 19.05
Utility
TPWODL 35.46 33.76 31.22 25.81 21.32 18.73 19.60 22.34 21.27
TPSODL 39.00 36.70 34.59 32.70 29.76 24.47 25.50 25.00 24.50
ALL
34.46 32.51 39.39 28.03 24.25 17.44 21.36 23.76 22.42
ODISHA
COLLECTION EFFICIENCY (%)
TPCODL 94.30 94.26 96.56 96.60 96.75 90.51 99.00 96.00 97.00
NESCO
96.96 95.72 96.25 93.38 94.10 86.38 99.00 92.00 93.00
Utility
TPWODL 95.37 93.45 88.00 87.87 86.87 87.91 99.00 95.00 96.00
TPSODL 90.75 88.60 89.90 91.44 86.95 84.34 99.00 91.00 96.00
ALL 95.67
94.02 93.80 92.91 93.15 91.67 87.90 99.00 94.11
ODISHA
AT & C LOSS (%)
TPCODL 37.67 37.25 34.89 34.04 30.49 30.42 23.77 29.84 26.89
NESCO
33.19 29.87 26.37 27.43 23.53 25.01 19.17 26.04 24.72
Utility
TPWODL 38.45 38.10 39.38 34.80 31.64 28.56 20.40 26.22 24.42
TPSODL 44.64 43.92 41.20 38.46 38.93 36.30 20.40 31.75 27.52
ALL
38.38 36.70 35.33 32.96 30.57 29.48 22.15 28.25 25.78
ODISHA

Revenue Gap Proposed by the DISCOMs

20. The Revenue requirement trend in Odisha DISCOMs as observed since FY2019-20 is
as given bellow:

Table - 7
Proposed Revenue Requirement
EHT HT LT TOTAL
Actual revenue during 2019-20 661.21 1104.07 1457.18 3222.47
Approved revenue for FY 2020-21 544.15 914.64 2110.79 3569.58
Estimated revenue for FY 2020-21
TPCODL (10 months) 482.00 645.00 1635.00 2762.00
Proposed revenue for FY 2021-22 581.00 845.00 2106.00 3532.00
Proposed ARR for FY 2021-22 4155.78
Proposed gap during FY 2020-21 623.78
Actual revenue during 2019-20 1281.51 266.03 814.72 2362.27
NESCO Approved revenue for FY 2020-21 1258.24 253.73 1114.04 2626.01
Utility Estimated revenue for FY 2020-21 842.41 226.38 974.57 2043.37
Proposed revenue for FY 2021-22 972.59 242.03 1123.88 2338.51

14
 EHT HT LT TOTAL
Proposed ARR for FY 2021-22 2651.82
Proposed gap during FY 2020-21 313.31
Actual revenue during 2019-20 1083.29 1107.22 1016.20 3206.72
Approved revenue for FY 2020-21 834.17 1024.45 1270.29 3128.91
Estimated revenue for FY 2020-21 901.76 1017.85 1265.53 3185.14
TPWODL
Proposed revenue for FY 2021-22 936.04 1052.89 1409.36 3398.30
Proposed ARR for FY 2021-22 3655.21
Proposed gap during FY 2020-21 256.90
Actual revenue during 2019-20 211.48 108.71 957.32 1277.51
Approved revenue for FY 2020-21 267.14 191.48 887.34 1345.96
Estimated revenue for FY 2020-21 239.32 168.99 933.72 1342.03
TPSODL
Proposed revenue for FY 2021-22 260.73 171.33 1038.14 1470.21
Proposed ARR for FY 2021-22 1586.90
Proposed gap during FY 2020-21 116.70
Actual revenue during 2019-20 3237.49 2586 4245.4 10068.97
Approved revenue for FY 2020-21 2903.7 2384.3 5382.5 10670.46
Estimated revenue for FY 2020-21
2465.49 2058.2 4808.8 9332.54
TOTAL (TPCODL 10 months)
Proposed revenue for FY 2021-22 2750.36 2311.3 5677.4 10739.02
Proposed ARR for FY 2021-22 12049.71
Proposed gap during FY 2020-21 1310.69

21. Inputs in Revenue Requirement for FY 2021-22

i) Power Purchase Expenses

The Licensees have proposed the power purchase costs based on their current BSP,
transmission charges and SLDC charges. They have also projected their SMD
considering the actual SMD during FY 2020-21 and additional load coming in the FY
2021-22 which is as shown in table given below.

Table - 8
Proposed SMD and Power Purchase Cost for FY 2021-22
DISCOMs Est. Estimate Distributi Current Estimated Power Purchase SMD
Power d Sales on Loss BSP Cost (Rs in Cr.) proposed
Purchase (MU) (%) (P/U) (Including Transmission and (MVA)
in (MU) SLDC Charges)
TPCODL 9195 6930.12 24.63% 277 2778.23 1946
NESCO Utility 5737.122 4644.200 19.05% 316.30 1959.06 1100
TPWODL 8250.00 6495.00 21.27% 322.60 2867.60 1400
TPSODL 4030.00 3042.844 24.50% 197.40 895.29 700
ii) Employees Expenses
TPCODL, NESCO Utility, TPWODL and TPSODL have projected the employee
expenses of Rs. 773 Cr, Rs. 362.63 Cr, Rs. 523.85 Cr and Rs. 416.27 Cr respectively
for FY 2021-22. Out of these proposed employee expenses, Rs. 233.67 Cr, Rs. 129.39
Cr, Rs. 132.31 Cr and Rs. 144.88 Cr respectively are proposed for employee terminal

15
benefit trust requirement for FY 2021-22.

For TPCODL the arrears under the 7th Pay Commission have been estimated
separately to be Rs 135 Crores for both regular and retired employees. In the order
dated 22nd April 2020, Commission had approved Rs 22.5 Cr against Rs 135 Cr that
was proposed by erstwhile CESU. Further an additional quantum of Rs 35 Crores is
also payable in FY 2020-21 in terms of the government notification. The balance
amount of Rs 77.5 Crores is proposed to be recovered in FY 2021-22. For NESCO
Utility the above cost has been projected considering the 50% of the arrear impact of
7th Pay Commission report to the tune of Rs. 29.73 crores. For WESCO Utility the
above cost has been projected considering balance 50% arrear of 7th Pay commission
towards existing employees Rs.38.32 crs. For SOUTHCO Utility the above cost has
been projected considering the effect of 50% of 7th Pay commission which is due
from 1st January 2016 for Executives and for Non Executives it is due from 1st Apr-
2015. To arrive at the basic salary for the FY 2021-22 the existing Basic pay for FY
2020-21 and 3% increment over the FY 2020-21 have been considered. Similarly, DA
has been considered to be 28% for FY 2021-22 considering 3% increase each from 1st
July-20, 1st Jan-21 & 1st July 21respectively. For TPSODL arrear due to 7th pay
commission for the above period has been taken as Rs.30.94 Crs.

iii) Administrative and General Expenses

TPCODL, NESCO Utility, WESCO Utility and SOUTHCO Utility have estimated the
A&G expenses of Rs 193.44 Cr, Rs.63.45 Cr, Rs 83.38 Cr and Rs 58.23 Cr
respectively based on expenses 2020-2021. The 7% increase is taken on account of
inflation and increase in the growth of consumer and exponential growth of customer
service activity on the normal A&G expenses except TPCODL.TPCODL is seeking
higher expenditure as compared to the amount that would be arrived at by applying the
norm for both FY 2020-21.

Apart from this, TPCODL has proposed other A&G expenses for some of the
activities as Property related expenses, communication, professional charges,
conveyance and travelling other expenses and special A&G expenses. NESCO Utility
has proposed additional A&G expenses for some of the activities as Energy Audit-
Recurring cost, Smart Metering Implementation, AMR related running expenditure,
Media Campaigning Expenditure and IT automation for various activity. WESCO
Utility has proposed additional A&G expenses for some of the activities as Automated

16
 meter reading activities, Media Campaign, Replacement & shifting of meters, Energy
Audit-Recurring cost, Cess on building construction and electrical installation, Prepaid
metering running expenses, IT automation for MBC activity and Spot billing
additional coverage. SOUTHCO Utility has proposed additional A&G expenses for
some of the activities as Media Campaign, Automated meter reading activities,
Customer Care Centre, Incentive for arrear collection, Building and other Cess,
Energy Audit-Recurring cost, Electrical Compensation Expenses, IT automation, SOP
Audit, Vigilance and Antitheft Activities and Transformer Repair Unit. TPCODL has
proposed other A&G expenses for FY 2021-22 as Rs. 86.71 Cr. Additional A&G
expenses projected by licensees for FY 2021-22 are NESCO Utility – Rs. 8.29 Cr.,
WESCO Utility – Rs. 18.56 Cr. and SOUTHCO Utility – Rs. 26.36 Cr.

iv) Repair and Maintenance (R&M) expenses

All the DISCOMs have calculated R&M expenses as 5.4% of GFA including the
RGGVY, BGJY assets and future assets to be created under SAUBHAGYA scheme at
the beginning of the year. With regard to the R&M of the assets created through
funding of the RGGVY and BGJY schemes, Commission in Para 350 the RST order
for FY 2019-20 had allowed an additional sum of Rs. 5.00 Cr to each of the DISCOMs
on a provisional basis which is not enough given the area over which the RGGVY
assets have been spread out. Licensees have also prayed to allow the R&M on the
RGGVY & BGJY assets so that they can maintain the assets. The details of proposal
under R&M expenses for ensuing financial year FY 2021-22 are given below:

Table - 9
R&M Costs (Rs in Cr)
GFA as at 1stApril of R&M (5.4% Additional R&M Total R&M
DISCOMs Ensuing FY2021-22 of GFA) Requested for RGGVY Requested
(Rs. Crore) (Rs. Crore) and BGJY assets (Rs. Crore)
TPCODL 4735.91 223.07 5.00 228.07
# Proposed
237.27
NESCO 1971.84 106.48 --* 106.48
Utility
TPWODL 2028.35 109.53 --* 109.53
TPSODL 1436.42 77.57 9.25 86.82
(R&M for RGGVY and BGJY assets is included in R&M (5.4% of GFA))

v) Provision for Bad and Doubtful Debts

TPCODL provision has been worked out on the quantum of revenue estimates at

17
 existing tariff and on the basis of the Billed revenue and has been considered at 1% of
the Revenue Billed. While NESCO, WESCO and SOUTHCO stated that, it is difficult
for them to arrange working capital finance due to continuance of huge accumulated
regulatory gaps to bridge the gap of collection in efficiency, therefore they have
considered the amount equivalent to the collection inefficiency as bad and doubtful
debts while estimating the ARR for FY 2021-22. NESCO, WESCO and SOUTHCO
has requested the Commission to consider the mentioned amounts to enable the
petitioner to recover its entire costs after duly considering the performance levels.

Table - 10
Provision for Bad and Doubtful Debt
DISCOMS Collection Efficiency (%) Proposed Bad Debts (Rs in Cr.)
TPCODL 99% 35.324
NESCO Utility 93% 81.85
TPWODL 96% 90.62
TPSODL 96% 29.40
vi) Depreciation

All the DISCOMs except TPCODL, have adopted straight-line method for
computation of depreciation at pre-92 rate. TPCODL has calculated depreciation for
exiting assets, assets out of inherited CWIP and assets out of new capex. Depreciation
for FY 2021-22 is projected at Rs 107.40 Cr for TPCODL, Rs 107.40 Cr for NESCO
Utility, Rs 72.89 Cr for WESCO Utility and Rs 55.90 Cr for SOUTHCO Utility.

vii) Interest Expenses including Interest on Security Deposit

The erstwhile CESU had been submitting the projections on the basis of actual
liabilities, including the loans taken under various schemes like APDRP, RAPDRP,
loans from GRIDCO and World Bank. However, TPCODL had inherited the Balance
sheet without such liabilities. TPCODL submitted interest on Debt capital only for the
loans required for the capital expenditure (FY 2020-21 and FY 2021-22) would be
considered. Past loans (which have also not been inherited) would not be considered.
NESCO Utility, WESCO Utility & SOUTHCO Utility have submitted the interest
expenses and the interest income for the FY 2021-22. The net total interest expenses
proposed by these licensees are Rs 74.08 Cr, Rs 84.20 Cr and Rs 50.54 Cr
respectively. The major components of the interest expenses of these licensees are as
follows:

18
viii) GRIDCO Loan

Commission in its Order dated 29.03.2012 and 30.03.2012 resolved the dispute on the
Power Bond and the amount arrived after the settlement adjustments issued as New
Loan to three DISCOMs. SOUTHCO Utility and WESCO Utility do not have any
outstanding payable to GRIDCO towards New Loan with regard to NTPC power bond
while NESCO Utility has liability of Rs. 48.91 Cr payable to GRIDCO.

ix) GRIDCO New Loan

SOUTHCO Utility has reported Rs 12.45 Cr interest expense under GRIDCO new
loan.

x) World Bank Loan Liabilities

The Distribution licensees NESCO Utility, WESCO Utility & SOUTHCO Utility have
calculated the interest liability of Rs 11.87 Cr, Rs 11.82 Cr and Rs 9.44 Cr
respectively against the loan amount at an interest rate of 13% and repayment liability
of Rs 9.10 Cr and Rs 7.26 Cr respectively for WESCO Utility & SOUTHCO Utility.

xi) Interest on CAPEX Loan from Govt. of Odisha

NESCO Utility, WESCO Utility & SOUTHCO Utility have estimated the interest at
the rate of 4% p.a. on the Capex loan issued by the GoO which amounts to Rs 1.73 Cr,
Rs 2.32 Cr and Rs 1.92 Cr respectively for the ensuring year.

xii) Interest on APDRP Loan Assistance

In the ensuing year, NESCO Utility, WESCO Utility & SOUTHCO Utility have
estimated nothing to be expended under APDRP scheme. For the assistance already
availed by the licensees previously interest @ 12% per annum has been considered for
the ensuing year on the existing loan. NESCO Utility, WESCO Utility and SOUTHCO
Utility have estimated an interest of Rs 0.76 Cr, Rs 0.66 Cr and Rs 0.80 Cr,
respectively on this account.

xiii) Interest on SI scheme Counterpart funding from REC for GoO CAPEX

SOUTHCO Utility has existing balance of loan of Rs 7.65 Cr taken from REC for
system improvement and counterpart funding against APDRP and the interest on such
loan for FY 2021-22 is estimated as Rs 0.88 Cr.

19
 xiv) Interest on Security Deposit

For estimating the deposit, TPCODL has considered the trend of the past two years.
Based on the trend on "per capita deposit", a deposit amount of Rs 2700 per consumer
is considered. Further to work out the interest on the Security Deposit, the rate
considered as available on the site https://www.sbi.co.in/web/interest-rates/interest-
rates/base-rate-historical-data. TPCODL has submitted interest on security deposits as
Rs 58.246 Cr for FY 2021-22. NESCO Utility, WESCO Utility and SOUTHCO
Utility have submitted that the interest on security deposits for FY 2021-22 have been
worked out at 5.40% on the closing balance for FY2020-21 based on the existing
approval of the Commission for FY2020-21. This interest on security deposit proposed
as Rs 58.25 Cr, Rs 34.03 Cr, Rs.44.21 Cr and Rs 15.87 Cr respectively. However, due
to fall in Bank Rate SOUTHCO Utility has proposed to reduce the rate of interest of
security deposit as per prevailing Bank rate declared by RBI for FY 2021-22.

xv) Other short term loan, SOD interest & finance charge

NESCO Utility, WESCO Utility and SOUTHCO Utility have reported in its total
interest expense Rs. 25.69 Cr, Rs 25.19 Cr and Rs 9.99 Cr as Other Short term loan,
SOD interest &Finance charge.

22. Revenue and Truing up ARR

i) Non-Tariff Income

TPCODL, NESCO Utility, WESCO Utility and SOUTHCO Utility have proposed
non-tariff income for FY 2021-22 to the tune of Rs.95.33 Cr., Rs 85.31 Cr, Rs 192.25
Cr and Rs 17.69 Cr respectively. However, NESCO Utility and WESCO Utility have
proposed to exclude the income from meter rent as the same is intended to be used
towards replacement of the meters.

ii) Provision for contingency Reserve

NESCO Utility, WESCO Utility and SOUTHCO Utility have proposed provision for
contingency at 0.375% of Gross Fixed Assets at the beginning of the year for FY
2021-22. The exposure towards contingency provisions is to the tune of Rs 7.89 Cr, Rs
7.61 Cr and Rs 6.53 Cr respectively.

iii) Return on Equity/Reasonable Return

TPCODL has claimed Rs 73.48 Cr as ROE calculated @16% on a return on equity.

20
 TPCODL has worked out the Return on Equity (RoE) for the capitalization arising out
of the Capex undertaken by TPCODL after Effective Date. Rest of three Licensees
submitted that due to negative returns (Gaps) in the ARR and carry forward of huge
Regulatory Assets in previous years, they could not avail the ROE over the years,
which otherwise would have been invested in the company for improvement of the
infrastructure. As it is followed by various Commissions, the Licensees submit that the
ROE to be allowed on the amount of the equity and the accrued ROE for the previous
year. This would increase the availability of more funds for the consumer services.
Therefore, NESCO Utility, WESCO Utility, SOUTHCO Utility have assumed
reasonable return amounting to Rs. 10.54 Cr, Rs. 7.78 Cr and Rs. 6.03 Cr as calculated
@16% on equity capital including the accrued ROE as per the earlier Orders of the
Commission.

iv) Truing Up for FY 2020-21

Based on the actual sales, revenue and expenses for the first half of the current year
2020-21 and based on estimates for next half of current year, the uncovered gap for
FY 2020-21 for NESCO Utility, WESCO Utility and SOUTHCO Utility is Rs 269.15
Cr, Rs 164.97 Cr and Rs 85.89 Cr as against the approved surplus of Rs. 11.73 Cr, Rs
19.75 Cr and Rs 10.57 Cr respectively.

v) Revenue at Existing Tariff

The Licensees have estimated the revenue from sale of power by considering the sales
projected for FY 2021-22 and by applying various components of existing tariffs. The
total revenue based on the existing tariffs applicable for the projected sales is
estimated at Rs 3532 Cr Rs 2338.51 Cr, Rs 3398.31 Cr and Rs 1470.21 Cr by
TPCODL, NESCO Utility, WESCO Utility and SOUTHCO Utility respectively.

Summary of Annual Revenue Requirement and Revenue Gap

23. The proposed revenue requirement of DISCOMs with and without railway have been
summarised below:

Table – 11
Proposed Revenue Requirement of DISCOMs (with railways) for the FY 2021-22
(Rs in Cr)
NESCO Total
TPCODL TPWODL TPSODL
Utility DISCOMs
Total Power Purchase, 2778.23 1959.05 2867.60 895.29 8500.17

21
Transmission & SLDC
Losses considered for projection 24.63%
power ARR
Losses considered by Hon'ble 22.93%
Commission for Tariff
Power Purchase cost considered 2716.97 1959.05 2867.60 895.29 8438.91
for GAP calculations
Total Operation & Maintenance 1474.87 759.65 964.48 698.98 3897.98
and Other Cost
Return on Equity 73.48 10.54 7.78 6.03 97.83
Total Distribution Cost (A) 1548.35 2729.24 3839.86 1600.3 9717.75
Total Special Appropriation (B) 7.89 7.60 6.53 22.02
Total expenditure including
1548.35 2737.13 3847.46 1606.83 9739.77
special appropriation (A+B)
Less: Miscellaneous Receipt 109.56 85.31 192.25 18.09 405.21
Total Revenue Requirement 4155.76 2651.82 3655.21 1586.91 12049.70
Expected Revenue(Full year ) 3532.43 2338.51 3398.31 1470.21 10739.46
GAP at existing(+/-) (623.33) (313.31) (256.90) (116.70) (1310.24)

Table – 12
Proposed Revenue Requirement of DISCOMs (without railways) for the FY 2021-22
(Rs in Cr)
NESCO
TPWODL TPSODL
Utility
Present traction contract demand (kVA) 145000 129500 99200
Projected railway traction energy consumption for
384.218 488.000 185.71
FY 2021-22 (MU)
Expenditure including Special Appropriation 2595.46 3669.85 1558.70
Reasonable return 10.54 7.78 6.03
Sub Total 2606.00 3677.63 1564.73
Revenue from sale of power at existing tariffs 2095.44 3091.13 1344.70
Non-Tariff Income 85.31 192.25 18.09
Total revenue gap without railway (425.25) (394.25) (201.94)
*TPCODL has not provided revenue Gap without Railways.

Tariff Proposal

24. The Wheeling Charges for TPCODL have been worked out for HT and LT consumers
(together) i.e excluding EHT network. For the purpose of the same, the ARR has been
segregated into Wheeling ARR and Retail Supply ARR on the basis of the guidelines
provided in the various orders of the Hon'ble Commission as TPCODL has certain
challenges to compute the ARR separately. TPCODL claimed the Cross Subsidy
Surcharge proposed is based on the formula given in the Tariff Policy of 2016.
NESCO Utility, WESCO Utility and SOUTHCO Utility have proposed to reduce the
revenue gap through revision in Retail Tariff and/or Govt. Subsidy as the Commission
may deem fit or combination of all above as the Commission may deem fit to the
extent as given below.

22
 Table - 13
Revenue Gap for Ensuing Year 2021-22 (Rs in Cr)
TPCODL NESCO TPWODL TPSODL
UTILITY
Revenue Gap with existing Tariff 623.33 313.31 256.90 116.70
Excess Revenue with Proposed Tariff 0 0 0 0
Proposed Revenue Gap 623.33 313.31 256.90 116.70

Allocation of Wheeling and Retail Supply Cost

25. All the licensees have submitted the allocation of wheeling and retail supply cost of
their total ARR based on the Commissions Regulations on bifurcation of Wheeling
and Retail Supply Business.

Tariff Rationalization Measures proposed by Licensees:

Proposal by NESCO Utility, WESCO Utility and SOUTHCO Utility

Withdrawal of power factor incentives (NESCO Utility and SOUTHCO Utility)

26. Presently all the machines used by the industries are BSI or ISO certified, similarly
pumps or motors used are energy efficient along with capacitor banks, which are the
contributor of higher power factor. Hence, licensees submitted that present scenario
continuance of PF incentives is no longer necessary and may kindly be abolished.

Withdrawal of TOD benefits (NESCO Utility and SOUTHCO Utility)

27. As per RST order TOD benefit is being extended to Three phase consumers except
public lighting and Emergency Supply category of consumers having own CGP for the
consumption during off peak hour. Off peak hour for this purpose is from night 12.00
PM to morning 6 AM of next day. Now with the introduction of frequency based tariff
significance of Off peak hour (TOD) consumption has been lost.

28. Consumers are reaping the benefit of frequency based tariff and intends to use
accordingly as a result the load curve of most of the industries are almost flat. In such
scenario continuance of TOD benefit is no more required. If continuance of TOD
benefit is being permitted to the consumers, similarly the Utility’s BSP may also be
permitted to reduce for TOD consumption during off peak hour. Further, consumers
having contract demand more than 110Kva and above are also availing off peak hour
benefit towards drawl to the extent of 120% of their contract demand without levy of
penalty. So, further continuance of TOD benefit would be a double benefit for the
same cause hence licensees have requested to withdraw TOD benefits.

23
 Demand charges to HT medium category consumers

29. Due to wide gap in the demand charges, consumers under HT medium category just
below 110kVA are always trying to avail demand benefit even though their load is
more than 110 kVA. To curb such disparity NESCO Utility, WESCO Utility and
SOUTHCO UTILITY have submitted to fix demand charges for HT medium
consumer category @Rs. 250 per kVA.

MMFC for LT category of consumers (NESCO Utility)

30. In case of Domestic, General purpose, Specified Public Purpose & PWWS the rate is
same as for 1st kW as well as additional Kw. However, in case of other category the
rate for additional Kw and part thereof is very much lower for which the revenue of
the utility is highly affected as well as creating discrimination among LT category of
consumers. In this view, Licensees have submitted to rationalized LT consumers with
single rate for 1st kW or part thereof as well as additional kw or part thereof.

Billing to Irrigation and Agriculture Category of Consumers (NESCO Utility)

31. Presently due to difficulty in putting meters in case of irrigation category of

consumers billing is not possible in most of the cases. Replacement of defective
meters is also not possible due to inaccessibility. In view of the same, the licensee
NESCO Utility and WESCO Utility requested permission to bill such category of
consumers on L.F. basis with L.F. of 30% considering their pump capacity.

Levy of Demand Charges (WESCO Utility and SOUTHCO Utility)

32. Consumers with contract demand 110 kVA and above are billed on two-part tariff on
the basis of actual demand and energy consumed. The Demand Charge reflects the
recovery of fixed cost payable by the consumers for the reservation of the capacity
made by the licensee for them. Presently the recovery of fixed cost of the Utility with
80% of CD is inadequate. In view of the same the licensee has proposed to recover the
monthly demand charges on the basis of 85% of the CD or MD whichever is higher
instead of 80%.

Additional Rebate of 2% to LT category of Consumers

33. The Commission has allowed rebate of 2% additional rebate towards digital payment
for LT category of consumers. The intention was to promote cash less transaction to
avoid pressure on currency notes which is also saving the time of the consumers for

24
 depositing cash in various cash collection centres. So, the licensee is intended to
continue with the same for the ensuing year. Therefore, the additional rebate of 2% in
addition to normal rebate as applicable may be considered for LT Domestic & Kutir
Jyoti category of consumers who shall make payment through digital mode only.
WESCO Utility has suggested for additional 2% instead of presently applicable rebate
of 2% in addition to the normal rebate as applicable may be considered by the
Commission for LT Domestic & Kutir Jyoti category of consumers who shall make
payment through digital mode only.

Introduction of kVAh Billing

34. The Commission in its RST Order dtd. 22.03.2014 for FY-2014-2015 had given the
directions to the DISCOMs vide Para-246. As per this para the implementation of
kVAh billing was declined due no non readiness of the licensees to implement the
kVAh based meter readings. Further, the licensees have submitted that all the 3-
phasemeters, especially those installed for consumers having Contract Demand 20kW
and above are enabled with all the energy parameters and storing dump record of 35
days. All such meters show instantaneous Power Factor and monthly average Power
Factor can be computed as ratio of active power and apparent power drawn by
consumers like in case of existing large and Medium Industries Consumers presently
being billed. Hence DISCOMs are fully equipped to implement kVAh billing in
respect of all those consumers in place of existing kWh Billing. Hence licensees
requested to allow kVAh billing from ensuing year.

Applicability of Power Factor Penalty (WESCO Utility and SOUTHCO Utility)

35. Licensees submitted that if the kVAh based billing proposal is not accepted by the
Commission by any reason, then the licensees have requested continuance of power
factor penalty as RST order of 2018-19 for Large Industries, Public Water Works (110
KVA and Above), Railway Traction, Power Intensive Industries, Heavy Industries,
General Purpose Supply, Specific Public Purpose (110 KVA and above), Mini Steel
Plant, Emergency Power Supply to CGP. Till such time kVAh billing approach is
adopted the Utility proposes for applicability of Power Factor Penalty for the
following category of Consumers in order to bring more efficiency in Power System
Operation.

• LT Category: LT industries Medium Supply, Public Water Works and

Sewerage Pumping > 22 KVA

25
 • HT Category: Specified Public Purpose, General Purpose < 110 KVA, HT
Industries (M) Supply.

Demand Charges and Monthly Minimum Fixed Charges

36. The Licensees have submitted that 90% of the distribution costs is fixed cost in nature.
The distribution cost of the License which is a fixed cost has increased many folds
during the recent years, the said cost normally required to be recovered from the
Demand Charges. The fixed cost of the power procurement by way of payment
towards capacity charges has also increased during last few years. In view of this, the
Licensees proposed to recover the full fixed distribution costs by suitably revising the
Demand charges and monthly minimum fixed charges as proposed in earlier section,
as applicable to the respectively category during the ensuing year.

Introduction of Amnesty Arrear Clearance Scheme for LT Non Industrial

category of consumers.

37. The utilities are having huge outstanding under LT non industrial category consumers.
Most of the consumers, after accumulation of huge outstanding are trying to get
another connection and putting the other one under Permanently Disconnected
Consumers (PDC). The utility is also suffering from huge financial loss on account of
low collection efficiency and coverage in Domestic and Commercial category of
consumers. With this the licensees requested the Commission to approve an arrear
collection scheme for LT non industrial category of consumers in line with OTS
scheme earlier approved for FY 2011-12. Depending upon the outstanding and paying
ability of the consumer’s 6 to 12 monthly instalments may be fixed to clear the
outstanding and avail benefit of withdrawal of DPS and certain percentage of waiver
on outstanding amount.

Rebate on prompt payment (NESCO Utility and WESCO Utility)

38. In the BSP Order for the financial year 2018-19, the Commission directed that the
Utility is entitled to avail a rebate of 2% for prompt payment of BST bill on payment
of current BST in full within two working days of presentation of BST Bills and 1% is
paid within 30 days. Further, the Commission had directed to pay the rebate to all
consumers except domestic, general purpose, irrigation and small industry category, if
payment is made within three days of presentation of bill and fifteen days in case of
others.

26
 Considering the above, it is prayed before the Commission to approve the rebate of
2% to the Utility for prompt payment towards BST bills including part payments
within 3 (three) working days from the date of presentation of the BST bill and in case
the BST bill is paid after 3 (three) days the rebate should be proportionately allowed to
the extent of payment made within 30th day @1% akin to Rebate Policy on Rebate is
provided to GRIDCO by NTPC.

Licensees have further submitted that the above rebate may kindly be also permitted in
case of part payment so that cash flow of the Bulk Supplier will improve and at the
same time the utility would be tempted to remit the amount collected to GRIDCO to
avail such benefit.

Recovery of Cost of the Meter (SOUTHCO Utility and WESCO Utility)

39. The Commission has approved recovery of Monthly Meter Rent from various
categories of consumers in different rates on the basis of types of meter. Recovery of
the same is permitted for a period of 60 months i.e. till the cost of the meter is
recovered. Statutory levy required to be collected in addition to meter rent. Statutory
levy indicates collection of GST. Now, consumers are being billed on monthly basis
along with meter rent, statutory dues i.e. GST also due on the basis of monthly/bi
monthly billing.

Creation of Accidental Corpus Fund (SOUTHCO Utility AND WESCO Utility)

40. Sometimes lives of human as well as animal are being lost for electrical accidents. In
many cases, the family members of the deceased person are suffering. To protect such
unforeseen happening Government of Odisha dept. of energy also suggest for creation
of Accidental reserve fund, out of which compensation may be extended to the
families of deceased person. It has been discussed on 26th Oct-19 under chairmanship
of Commissioner Cum Secretary department of energy under 5 T program. It has been
directed that DISCOM should appeal before OERC in tariff for recovery of Re 1 on
monthly basis. In view of the above it is humbly submitted before the Commission to
approve the same in the RST order.

Negative Cash Flow (WESCO Utility)

41. The Utility is also facing financial crisis in the current year & unless substantial relief
is being extended the cash flow position will not improve for the ensuing year.

27
 Charges for line extension to LT single phase up to 5 kW

42. RST order dt. 22.04.2020 Annexure-B para(vii) has allowed charges for LT Extension
up to 5kW. Following are the approved charges: Up to 2KW Rs. 1500/- , 2-5KW Rs.
2500/-, Rs. 5000/- for beyond 30m. It is seen that the actual cost is much higher in
many cases. For urban areas it is somehow possible, but in case of rural area it is not
feasible and it may be fixed as Rs. 12500/- per span.

OBJECTIONS & QUERIES RAISED DURING THE HEARING (PARA 43 TO 168)

43. Public hearing on ARR and Tariff application of all the DISCOMs for the FY 2021-
22was initiated with a Power Point Presentation followed by presentation by World
Institute of Sustainable Energy, Pune who was the consumer counsel appointed by the
Commission. The consumer counsel presented the summary of the submissions made
by the licensee, analysis of the ARR with observations.

44. Consumer associations, individuals in their written submission had raised issues
contesting the proposal of the DISCOMs. The Commission has considered all the
issues raised by the participants in their written as well as oral submissions made in
the public hearing. Many objections were found common in nature. These are
summarized and addressed as follows:

Performance Related Issues

AT&C Loss and Collection Efficiency

45. Some of the objectors have raised that many objections and suggestions had being
filed but proper compliances not been done by the petitioner. The objectors have
submitted that, in spite of AT&C loss targets fixed by the OERC, DISCOMs have not
reduced the same and projecting fictitious loss figures at the beginning of a financial
year and ending up with increased losses year after year. Further, some of the
objectors submitted that the figures related to AT&C losses are fabricated and not
realistic as all the feeders and substations are not metered. DISCOMs are not taking
action for AT&C loss reduction and its prayer for bridging the revenue gap through
increase in RST, decrease in BST, and by truing up exercise may be rejected.

46. Some of the objectors have stated that the applicant has not submitted the systematic
plan how to achieve the proposed requirements. The Objectors have stated that The
Standards of Performance is not at par the prescribed services of OERC. The Objector
has stated that the previous Orders of the Commission is not complied so far and there

28
 is no meaning if those are not properly implemented. The Objectors have claimed the
licensee is not able to perform as per their own proposal. There is big gap in actual
performance compared to the approval of the Commission. The Objectors have
requested the licensee should not be allowed further escrow relaxation due to
inefficiency.

47. Some of the objectors submitted that to increase the collection efficiency, the
DISCOMs are forcing the consumers to make payments on faulty bills and in some
cases the licensee is disconnecting the power supply without prior notice to the
consumers for such faulty bills which is not in line with the provision of law.

48. Some of the objectors submitted that in the absence of actual energy audit, technical
and commercial losses cannot be segregated and DISCOMs have failed to achieve the
targets set by Hon. Commission and it is the deliberate action of DISCOMs to
overstate distribution loss to obtain higher tariff.

49. Some of the objectors submitted that the collection efficiency includes the collection
of past arrears. However, the licensee should submit the data related to the collection
of past arrears.

50. Some of the objectors submitted that the AT&C loss trajectory set by Hon.
Commission is constant since past few years and the same needs to be reduced to a
lower level compared to previous years’ approval.

51. Some of the objectors submitted that utility should analyse reasons behind less
reduction of distribution losses and should also work towards improving collection
efficiency.

52. One of the Objectors has stated that the Application is beyond the scope of Chapter 2
& 3 of OERC (Terms and Conditions of Tariff) Regulations 2004 and Chapter VIII of
OERC (Conduct & Business) Regulations 2004, Electricity Act 2003 and OERC
Terms and Conditions for determination of Wheeling, Tariff, and Retail Supply Tariff
Regulations 2004.

53. Many Objectors have stated that there is no plan submitted how to reduce the
Expenditure. Objectors have stated that The Distribution Loss is Controllable as per
order by Commission dated 20.03.2013 on MYT Principles for 2nd Control Period FY
2013-14 to FY 2017-18. The Distribution Loss for FY 21-22 may be approved at very
low level compared to the set limit for last year.

29
54. One Objector has requested the licensee should inform the objector, the collection
efficiency and the distribution for the first 8 months so that the expected AT&C losses
for the year 2021-22 can be projected. The Objector has stated that the Licensee has to
produce details of year wise collection, reduction of AT&C loss for each division
since 2013-14 of each division. The Objector has raised that the licensee should justify
why AT&C losses are not yet reduced as per directions of the Commission. Set the
AT&C loss reduction target to 15%.

55. Many Objectors have raised Electricity price is the highest in Odisha when compared
to other states.

56. One Objector has raised that the licensee has not submitted the detail break up of
O&M Expenses.

57. One Objector has submitted that the average cost by the Commission in course of RST
determination is very high in comparison to actual average cost of supply of Odisha
power distribution whereas no attention is paid to the other crucial parameter average
revenue The Objector has claimed that there was erroneous calculation of RST in
previous years. The Objector has requested to include parameter average revenue of
the enterprise in the process of tariff/price/fees/charges determination. The Objector
has claimed that DISCOMs are losing opportunity to reduce their transmission cost.
Power generators including CGPs driving more benefits from the state grid than the
DISCOMs for which it is necessary to levy charges at par with DISCOMs. The
Objector has suggested to take higher average rate of recovery of revenue of P/U in
special consideration aftermath of pandemic covid-19. The Objector has claimed in
spite of outbreak of pandemic actual billing efficiency for previous year was more, the
petitioner has reduced billing efficiency significantly. The Objector has also requested
to provide average cost of supply and effective retail supply tariff in Odisha from the
year 1998-99 to 2020-21

58. Some of the Objectors have raised that wide gap between T&D loss and AT&C loss is
definitely alarming. The Objectors have requested to scrutinize the gap as the actual
revenue gap for the previous year

59. Many Objectors have raised that the licensee has not taken any steps to increase
efficiency level through the reduction of AT&C losses. If the AT&C losses are
audited, it will be much above present figures.

30
60. In case of TPCODL one of the Objectors has submitted that their ARR is concentrated
mainly on additional capitalisation. The Objector has submitted that additional
capitalisation has no benefit in reduction in AT&C losses. The Objector has submitted
that there is average increase in tariff p/u. The Objector has requested disallow higher
expenditure including CAPEX and outsourcing of works resulting higher expenditure
and consequent burden on tariff. The Objector has requested development of cyclone
resilient distribution system under long term perspective plan and capex.

61. In case of TPCODL there is no submission towards collection of the heavy

outstanding dues from the consumers which in excess of Rs. 2000/- crores.

62. In case of TPCODL one of the objector has requested engagement of feeder manager
with the responsibility for reducing AT&C loss.

63. One Objector has requested rating of distribution utilities as per the parameters fixed
by the Government of India.

Energy Audit and Metering

64. Several objectors submitted that none of the licensees have been able to conduct
proper Energy Audit. The DISCOMs have claimed that they have taken serious effort
for metering of HT and LT feeders as per direction of the Commission in 2003.
However, the data submitted by the DISCOMs suggests that there is substantial
absence of metering to carry out “Energy Audit”. The Energy Audit data has not been
submitted by DISCOMS along with the application for approval of ARR. They further
submitted that the DISCOMs should carry out third party verification of energy audits
through the accredited energy auditors.

65. Some of the objectors submitted that most of the DTRs are without energy meters and
in such case the energy audit activity will not yield desired results. The Energy audit
activity should be carried out only after the implementation of 100% DTR metering.
Some of the objectors have submitted that the licensee should furnish details of total
energy audit for DTR. Further objector requests the licensee to take steps for
corrective action for loss reduction.

66. At the hearing, several objectors have pointed out that if Energy Audit is done under a
specified time period, then the DISCOM may be levied a penalty by BEE for the
delay.

31
67. Some of the objectors have requested for the Energy Audit subdivision wise report for
the audits conducted in last year along with outcome of audits and subdivision wise
technical losses.

68. One Objector has requested for extension of load flow study up to 11KV level. The
Objector has requested developing data base for voltage at all consumer premises.

Employees’ expenses
69. Many objectors have stated that the projected employee cost is on the higher side.
Most objectors have requested for prudent check of employee costs for all DISCOMs.
They pointed that, major activities like billing and collection are being outsourced and
hence the employee cost should come down. The licensees may be directed to submit
the audited statement for O&M expenses including the employee cost.

70. Some of the objectors have objected on the proposed manpower recruitment plan of
the DISCOMs. As many activities of DISCOM are outsourced or executed through
franchisees hence the proposed increased manpower requirement through recruitment
is not justified.

71. One of the objectors has requested the licensee to provide division wise consumer and
number of workers engaged in O&M work.

Administrative &General expenses

72. Some of the objectors submitted that prudent check of A&G cost is required and
submitted that the additional A&G expenses may not be approved as the Licensees
have failed to reduce losses and improve the collection efficiency. The objectors
requested to undertake a prudence check regarding A&G cost for each year.

73. Some of the objectors submitted that Petitions proposal on A&G cost estimation for
the FY 2021-22 is unjustified.

Depreciation cost
74. Some of the objectors have submitted that depreciation should not be allowed on
assets funded by consumer contribution and capital subsidy/grants.

75. Objectors submitted that petition’s depreciation cost estimation for the FY2021-22 is
high.

Repair and Maintenance expenses

76. Objectors submitted that DISCOMs should furnish details of plan and budget for

32
 periodic maintenance of distribution network including emergency repairs and
restoration work under each division. Further, DISCOMs should furnish the details of
work and expenditure incurred for undertaking critical activities towards loss
reduction, energy audit. Also furnish the detailed breakup of gross fixed assets and
detailed lists of RGGVY, BGGY assets taken over by the DISCOM.

77. Some of the objectors submitted that since details of RGGVY, BGJY assets taken over
by DISCOMs are not furnished, no additional R&M expenses on these assets may be
allowed.

78. Some of the objectors submitted that the licensee has failed to execute the proper
R&M of distribution infrastructure. Despite of approval of R&M expenses the
licensees are unable to spend the budget under the R&M and most of the R&M
expenses are incurred in the last six months of the financial year. In such scenario the
additional R&M requirement by DISCOMs is unjustified.
79. One of the Objectors also suggested that the Commission may enforce necessary
actions and directions over the DISCOMs for development of strong and robust
distribution system with proper safety measures considering the changes in weather
and climate pattern of the planet and dangers of cyclones and hurricanes which Odisha
facing severe climatic issues over the past couple of years.
80. Some of the Objectors have requested that the licensee to provide expenditure details
from 4th March 2019 to till date on the schemes like CAPEX programme, Energy
system improvement programme, strengthening of infrastructure programme under
elephant corridor, Odisha distribution sector strengthening project, IPDS, DESI,
ODSSP, ODAFF, DDUGJY.
81. One Objector has requested to prepare the yardsticks for operation and maintenance
work of the area.

Provision for Bad and Doubtful Debts

82. Some of the objectors objected on the higher provision for bad and doubtful debts and
submitted that it should not be allowed more than 1% of the LT and HT revenue
realisation. Objectors have stated that the licensee should fund their Working Capital
requirement through collection from the huge outstanding receivables. Therefore, the
provision for bad and doubtful debts of should not be allowed for FY 21-22.

83. One Objector has requested the licensee to provide detailed list of outstanding till date
for different organisations.

33
 Issues Related to HT / EHT Consumers
Demand Charges for GP > 70 KVA < 110 KVA and HT Industrial (M) Supply

84. Objectors submitted that proposal of DISCOMs for consumers having contract
demand more than 70KVA but less than 110KVA to bill based on contract demand or
maximum whichever is higher irrespective of connected should not be accepted.

85. Some of the objectors have stated in reply with MMFC for consumer with contract
demand <110 KVA and demand charges for GP>70KVA<110 KVA and HT (M)
industrial supply, the Objectors raised the issue that licensee has not followed orders
by OERC, and hence present tariff should continue.

Over Drawl by Existing HT/EHT Category Consumers

86. Objectors submitted that Commission may reject the submission of DISCOMs for
penal demand charges for over drawl beyond contract demand. The objector requested
the Commission to determine a period of continuous overdraw (Beyond 120% of
contract demand) which shall be treated as guide line to take action against evading
the enhancement of contract demand.

Take or Pay Benefit

87. Some objectors requested to reintroduce the take or pay benefit scheme or special
tariff for energy intensive industries /consumers having contact demand of 110 kVA
and more and industries should guarantee in writing to pay for minimum load factor of
70%.

88. Some of the consumers proposed to allow special rebate of 50 paise per unit under this
scheme. Demand charges should be levied on the basis of maximum demand recorded
or 80% of the contract demand.

Withdrawal of Reliability Surcharge on all HT/EHT consumers

89. Objectors submitted that in obedience to the tariff order of the Commission none of
the DISCOMs are providing reliability index calculation as well as voltage variation
report along with energy bill in case reliability surcharge is to be assessed and
claimed.

90. One of the objector submitted that the reliability surcharge may be deleted.
Availability of EHT lines and corresponding voltage of supply is related to
performance of Transmission Licensee. Therefore, a second incentive and that too to
DISCOM on same parameters is not justifiable.

34
91. Some of the consumers submitted that when reliability surcharge is payable by a
consumer to the licensee for achieving a certain level of performance on “availability”
and “voltage of supply”, a penalty should also have been imposed for not achieving
these standards as per OERC SoP Regulations 2004 and CEA Grid Standards
Regulations, 2010.

92. Many Objectors have stated that The Distribution Company is levying Reliability
Surcharge without maintaining the Reliability Index and voltage variation report. The
Commission may withdraw the reliability surcharge in Tariff order for FY21-22.

93. One of the objectors claimed that reliability surcharge approved in last RST order is
neither authorised under the Electricity Act, 2003 nor in the electricity rules or tariff
regulations.

94. Some Objectors have requested to withdraw reliability surcharge as it is responsibility

of the DISCOMs to provide reliable power supply.

Introduction of KVAH Billing (OR) PF Penalty for Three-phase Consumers

having CD<110 KVA
95. Some Objectors have stated that KVAH metering is a win-win situation for Consumer
and Supplier if the rate per unit of KAH billing is 90% of kWh rate.

96. Some of the Objectors have stated there is huge investment done for power factor
improvement, now installation alterations will be huge if KVAH billing is introduced.
power factor incentives should not be withdrawn. Any change in the tariff pattern
should be done giving sufficient notice and time frame to the consumers.

97. One of the Objectors has suggested introduction of KVAH billing should be subject to
the licensee passing through the benefit to the consumers.

98. Many objectors have claimed Introduction of KVAH billing by which P.F. penalty
will be withdrawn may prove system damage also under KVAH billing system the SI,
MI & other consumer who are not under P.F. folder, will be affected badly.
99. Some of the objectors have requested the submission of the KVAH billing may be
rejected.

Slab Restructuring for HT & EHT consumers

100. Some objectors have requested to reintroduce the three slab based graded incentive
tariff for HT/EHT as it promotes higher consumption industries. Reintroducing this
incentive will have the effect of reduction in tariff for all HT and EHT consumers for

35
 higher consumption and in turn will help the licensee and the licensee will not be
overburdened due to the subsidy component enjoyed by the LT Consumers.
101. One of the objectors submitted that, mega steel plants are contributing substantially to
the revenue and employment generation. Hence objector has petitioned for a separate
consumer category for ‘Mega Steel Plant’ as per the provisions of Regulation 80 of the
OERC Distribution (conditions of supply) code, 2004, with tariff slabs of load factor
consumption as <40%, 40-50%, 50-60%, 60-70% and >70%. The Objector has
requested the Commission to determine a common tariff for HT & EHT Consumers
based on Voltage of Supply.
102. One of the objectors suggested that in the interest of the industrialization of state, tariff
for the EHT and HT consumers should be based on the cost of supply after
determining the Bulk Supply Price applicable to the licensee. One of the objector
submitted that there should be special Tariff for EHT Consumers with High load
factor

103. One of the Objectors has stated there has been unprecedented increase in tariff
applicable to EHT consumers from the FY 2010-11 onwards, though BSP charges
have not increased in the same ratio as the EHT tariff.

Interest on Security Deposit and acceptance of Bank Guarantee

104. One of the objectors asked details about the month wise receipts of Escrow
Relaxation: payment of E.D
105. Some of the Objectors have requested to permit submission of additional security
deposit in the form of bank guarantee for HT & EHT consumers

Applicability of MMFC and Fixed Charges in the Tariff design

106. One of the objectors has supported present tariff on MMFC/Demand Charges to
continue.

Meter Rent
107. Many Objectors have specifically stated that the Meter cost of 1-phase static meters
can never exceed Rs.1600/-. DISCOMs are allowed to charge Rs.2400/- as meter rent
against Rs.1600/- investment, which is unjust. So is the case of 3-phase meters. The
Commission may kindly review their order and allow DISCOMs to collect meter rent
till it recovers its costs. It is further submitted that the Commission may direct the
DISCOMs to submit the data related to meter rent collected and may reduce the same
thereafter conducting detailed scrutiny.

36
108. Some of the Objectors have claimed that the other income is non-escrow. Procure
good energy meters. The cost of meter is also recovered through meter rent which is
also non-escrow.

109. Some of the Objectors have requested meter rent RST order for 2018-19 may be
withdrawn and order may be passed for collection of meter rent till recovery of landed
cost of the meter

110. One Objector has raised that the cost of the three phase tri-vector meter is about
rupees 20000 but by the present order the consumer has to pay rupees 60000. The
Objector has submitted that collection of meter rent should be till recovery of landed
cost of the meter.

111. One Objector has requested installation of pre-payment meters as per the electricity
(rights of consumers) law 2020.

Supply to Captive Power Plants (CPPs)

112. One of the objectors submitted that the CPPs are paying at higher rate than the other
category of consumers. CPPs do not avail power regularly & they should not be
burdened with paying the demand charge throughout the month. Further Hon.
Commission has done detailed examination of the provision in the supply code and
tariff structure and the present single part tariff is taking care of the demand charges
and energy charges for this category of consumers. Hence the prayer of licensee to
change demand charge against emergency power with enhancement of present energy
charges should not be accepted.

Calculation of Load Factor

113. One objector submitted that load factor should be calculated based on the actual
period of availability of unrestricted power supply during the month and that the
demand charges should be calculated on prorate basis if the total period of shutdown
of the plant due to interruptions and planned shutdowns exceed 30 hours in a month
instead of 60 hrs a month.

114. One of the objectors has claimed that consumers at very low load factor even at
HT/EHT are being charged with low tariff whereas the industrial consumer even at
high load factor at HT/EHT are charged with higher tariff. Industrial consumers in the
state are being charged at very higher rate as compared with other consumers at the

37
 same voltage level having lower load factor in the all the tariff years. Hence the
Commission is requested to try to rationalise tariff based on voltage level, load factor,
power factor, total consumption from 2020-21 onwards.

115. One Objector has requested to reduce the existing demand and energy charges and to
consider railway traction tariff at par with that of organizations having > 60% load
factor, load factor incentive from 40% category instead of 60% category and charging
at the unit rate which is actual cost.

116. Some of the Objectors have stated that The Ferro Chrome Industries are not
performing well and are facing severe financial crisis mostly due to market conditions.
These industries are also drawing less power compared to the CD. This is because the
tariff for electricity are high and industries are availing Open Access at comparatively
cheaper rates.

117. Some of the Objectors have requested Poor LI consumers GPS tariff under Regulation
138(e) is burden on them, Revisit demand charges and load factor bills against power
supply.

Power Factor Incentive

118. Some Objectors have stated that The Power Factor Incentive introduced by the
Commission for FY 2015-16 @ 50% of incentive provided prior to FY 2013-14. This
results in an incentive of 0.5% for every 1% increase in PF above 97% (allowable PF
of 92%) and penalty for fall in PF from 92% to 70% is @0.5% for 1% fall in PF.
Thereafter, upto 30% penalty is @1% for every 1% fall in PF. This incentive should
be provided @1% for every 1% increase in PF above 97% and 0.5% for every 1%
increase in PF above 92%.

119. Some objectors have stated that the Power Factor Incentive and Penalty Scheme is
necessary to promote system efficiency and may be continued. One Objector has
claimed there is huge investment in installing/replacing capacitor banks and further
the cost incurred towards maintenance of such capacitor banks. The power factor
incentive should continue and withdrawing power factor incentive may not be
considered.

ToD Benefit

120. One of the objectors submitted that, present TOD benefit, Demand Charges for HT
medium category consumers MMFC on LT consumers and Levy on demand charges

38
 should Continue.

121. One of the objector is of the opinion that the TOD benefit should be extended for day
off-peak hours i.e. from 1200 Hours to 1700 Hours to encourage consumers to
consume more power from DISCOM instead of procuring power from power energy
exchange through Open Access. Another Objector has suggested off-peak may be
granted from 10pm to 6 am of next day

122. Some consumers have also suggested that a differential Tariff for Peak & off Peak
hours is necessary to promote DSM, this would encourage consumers to shift their
load from peak hour to non-peak night hours. Hence the Commission may encourage
DISCOM to move toward separate Peak/ off Peak Tariff and ToD benefit should be
increased significantly from 20 paisa per unit to 50 Paisa per Unit.

123. One of the objectors has raised that following should be withdrawn, if maximum
demand exceeds the contract demand beyond the off-peak hours then the consumer is
not entitled to get off peak hours overdrawal benefit even if the role during off-peak
hours is within 120% of CD.

Cross Subsidy

124. Some objectors have stated that CSS should be gradually reduced; the energy cost is
very high and difficult for consumers to opt for Open Access. The Commission should
calculate Cross Subsidy in an appropriate manner while approving ARR and RST for
the licensees. The current CSS computed for different category of consumers is with
errors. The Objectors have requested to determine the tariff progressively based on
cost to serve the consumer and by reducing the cross subsidy. The unusually high
cross subsidy and the inability of DISCOM to control the T&D losses has resulted in a
heavy burden.

125. Some of the HT consumers submitted that DISCOMs do project higher purchase and
sales of energy intentionally for LT category which ultimately leads to more cross
subsidy to be paid by HT / EHT consumers.

126. Some of the Objectors have stated that the applicant has failed to reduce AT&C losses
and collect its revenue according to approval of the Commission year-after- year. The
Objector has stated that the DISCOMs are projecting higher LT Sales for the purpose
of getting advantage in tariff setting. The Commission may determine the tariff for
different categories of LT Consumers within limit of ±20% of average cost of supply

39
 in the state as Cross Subsidy. The Objectors have requested to revisit the exceptional
consideration to BPL and Agriculture consumers +/- 20% cross subsidy in Odisha
RST structure.

127. The Objector has raised that the cross subsidy calculation should be as per the national
tariff policy and as per the direction of ATE.

General Issues related to Retail Supply Tariff of DISCOMs

Energy Sales Forecast

128. Many objectors submitted that the sales projections made by the licensees are not
realistic and are overestimated. The trend of LT sales, LT sales approved and the
power purchase data shows that the LT sales are never been achieved and the same are
projected only to procure more power. Objectors have requested for a prudent check
of projections for LT Sales for FY 21-22 is required to justify the higher figures for
LT sales as projected

129. Many objectors have stated that the DISCOMs has not submitted its Business Plan for
the full Control Period with details of Sales/Demand Forecast for each consumer
category and sub-category for each year of Business Plan, Distribution Loss
Trajectory and collection efficiency trajectory

130. The objectors further submitted that the present practice by DISCOMs of keeping
power purchase proposal same and raising LT sales to match it, increases burden of
cross subsidy on HT and EHT consumers. A prudent check of projections for LT Sales
for FY 21-22 is required to justify the higher figures for LT sales as projected by
DISCOMs. The utility needs to provide adequate justification for LT sales with actual
sales pattern over years

131. One of the Objectors has stated that induction furnace solely depends on the rate of
electricity but from last 12 years there is exponential increase in electricity tariff by
the DISCOMs. Many industries are closed now so the petitioner doesn't have exact
contract demand figure.

132. Some objectors submitted that the HT and EHT consumers have been increased
substantially from 2010-11. Further the increase in HT and EHT tariff has been highly
disproportionate as compared to change in BST and transmission charges paid by the
licensee. Post COVID-19 vaccination looking into U shaped recovery in business and

40
 economy. The Objectors have stated in addition to the adverse market conditions and
disproportionate increase in RST by the licensee for HT and EHT consumers has
adversely affected the industrial productivity.

Review of Inefficient Operations and Quality of Power Supply

133. One objector stated that the tariff hike in the past few years was based in improvement
of power quality, service and operational efficiency. The effort for curbing thefts are
not effective and has led to inconvenience to consumers. One of the objector
submitted that licensees need to undertake meter ceiling and inspection activities.
Further, he submitted that licensees need to maintain meter replacement history.

134. One of the objectors requested the Hon. Commission to redress the issues of
inefficiencies, corruptions, irregularities’ and maladministration of licensees and
initiate necessary action as per rules of law so as to decrease the RST.

135. Many objectors have raised the issue where utilities consistently fail to meet the
Standard of Performance as per regulation and could not satisfy the consumers.

136. Most of the objectors raised the issue that DISCOMs are delivering false statements
that reason for power cuts is because of power scarcity.

137. Most of the objectors raised that the net cost of power to consumer is inflated without
increasing the reliability or quality of supply.

Demand Side Management

138. Many objectors submitted that NESCO Utility, WESCO Utility, SOUTHCO Utility
should submit detailed action taken for implementation of DSM regulations in its area.
One Objector asked the licensee to submit the detailed report on implementation of
DSM regulation.

139. The Objectors were of the opinion that a differential Tariff for Peak & off Peak hours
is necessary to Promote DSM hence the Commission may encourage DISCOM to
move toward separate Peak/ off Peak Tariff.

140. The Objector has suggested in the interest of consumers, DISCOM, GRIDCO and the
State: as GRIDCO will be surplus with power due to commissioning of 3rd and 4th
unit of OPGC and other power station of NTPC so part of surplus power can be
utilized by the industry of the state and balance can be traded by GRIDCO to reduce
the burden of cross subsidy made by HT/EHT industrial consumers for LT consumers.

41
 Audit of Books of Accounts

141. Many objectors submitted that, DISCOMs have not submitted the audited account for
previous years has requested that the Commission may direct the DISCOMs to submit
Audited balance sheets, Profit and Loss account, Cash Flow Statement along with
Auditor Report at the earliest with a copy to respondent(s).

142. One Objector has raised the licensee is not making payment of actual ED collected
from the consumers. Commission may issue directions to government for proper ED
audit.

143. One Objector has raised that arrear ED should be collected first against a payment by
the consumer. The Objector has submitted that ED should be limited to not more than
40 paisa per unit.

Consumer Awareness and Consumer Grievances

144. One Objector has requested to report on number of open access consumers in Odisha,
demand and total power consumption by the open access consumers.

145. Some of the Objectors have suggested that introduction of amnesty scheme for LT non
industrial category of consumers is welcome proposal.

146. In regard construction work of HT & EHT (regulation 22(v) & 29 of Code, 2019),
objector submits consumer should not be forced for construction of line DISCOM
should take up the work and complete within due time with remunerative benefit.

147. Many Objectors have raised clarify statutory power cut and power interruption
(regulation 143(iii) of code, 2019). The Objectors have suggested demand charges be
calculated on prorate basis if the total period of shutdown of the plant due to
interruptions and planned shutdown exceeds 30 hours in a month instead of 60 hours a
month.

148. Some of the Objectors have raised Amend/withdraw disconnection of power

(regulation 168 of code, 2019) when Appellate Authority could not decide within 180
days from the appeal petition. The Objector has requested Poor LI consumers GPS
tariff under Regulation 138(e) is burden on them, Revisit demand charges and load
factor bills against power supply.

149. Some Objectors have raised the licensee is not implementing the orders of GRF and
ombudsman with same plea or another. Regulation 80(5)(ii)(iii) of OERC code 2004

42
 and 138(f) & (g) of code 2019 licensee should extend benefits and not keep it pending.

Other Issues

Electrical Accidents, Death of Animals and Human beings

150. Some of the objectors submitted that licensee has to produce the division wise details
of death of human beings and animals due to electric shock and compensation paid to
them from 2010 to 2020.

151. Some of the objectors submitted review proposal to be made on creation of corpus
funds for victims of Electrical Accidents.

Regarding effectiveness of tariff exercise design by the Commission

152. As per the EA 2003, the Commission should gradually move towards rationalized
tariff and the tariff should actually reflect the cost of supply. The Commission should
consider a special tariff for Allied Agro Industrial activities and cold storages. The
Objector has raised that Agro Industry Tariff Category is not having continuance of
agreement.

153. The retail electricity tariff of various categories of consumers of Odisha is much
higher than that of the other states. Therefore, reasonable, rational, competitive and
affordable tariff concepts have not been taken in to consideration during determination
of RST.

154. As per provisions the Commission make an effort for rationalization of tariff based on
voltage level, load factor, power factor, voltage, total consumption

155. One Objector has claimed in the present case no demonstration of stranded capacity
has been provided by the licensee therefore there is no case of additional surcharge to
be levied by the licensee. The national tariff policy 2016 provide additional surcharge
to recover the fixed cost of generation stranded due to open access. Regulatory assets
cannot be recovered through additional surcharge.

156. Some of the Objectors have raised that the Licensee has not been able to pay BSP bills
to GRIDCO on monthly basis.

157. One Objector pointed towards neighbouring states have identified railway as a
separate category. Hence the Commission must direct the licensee to create separate
“Railway traction” category and tariff accordingly

43
158. Some of the Objectors have stressed that the need to approve ‘special tariff’ for power
intensive ferro alloys industries and steel industries as earlier.

159. Some of the Objector have requested to determine a special/separate tariff for power
intensive industries. EHT Industry is directly connected to the transmission network of
OPTCL no technical loss caused in the network of the licensee.

Franchisee Operation

160. One Objector has stated that the licensees have outsourced major activities like billing
and collection in majority of their operational areas and hence the employee cost
proposed by the petitioner is very high and not justified.

Electricity Billing and Payment

161. There are many complaints related to energy bills. One of the objectors requested the
information related to bills issues, no of discrepancy of bills complaints received, no
of complaints still not complied and pending with reasons etc.

162. The Objector has claimed that consumers enhancing contract demand more than their
contract demand do not violate tariff order.

163. One of the Objectors has stated that action of the licensee against a consumer is
contrary to OERC tariff orders and regulations in force in cases of consuming
electricity in excess of the sanctioned or connected load and provisional bill/final bill
on energy charges.

164. One of the Objectors has claimed that the licensee has no scope for inspection incase
whatever consumption related to demand and unit consumption are made by the
consumer is confirmatory to tariff Orders and regulations in force and energy bills
cannot be inspected. Utilizing more consumption is by making payment of energy bill
at higher tariff than tariff for subsidized customers. The Objector has claimed that
without any sanction of law the licensee is raising penal bills.

New Connection

165. In regard any application for new service connection (regulation 18 of Code, 2019),
objector submits that utility should check provisions of law and orders and amend its
own terms and condition.

166. In regard construction work of HT & EHT (regulation 22(v) & 29 of Code, 2019),

44
 objector submits consumer should not be forced for construction of line. DISCOM
should take up the work and complete within due time with remunerative benefit.

Feed extension

167. One of the Objectors has stated that ignoring of maximum demand during feed
extension over the different DICOMs, recorded demand can be done by DISCOMs in
case of a feed extension of one TSS of a DISCOM over another TSS of other
DISCOM due to fault of OPTCL.

OYT Scheme

168. The Objector has raised that OYT scheme is not extended to intending consumers. The
Objector has raised that no remunerative benefit was extended to any of the
consumers. The Objector has raised that the consumers less than 110 KVA are not
being extended with demand charges. The Objector has claimed that due to covid-19
110 KVA load suffered a lot as they have to pay 80% of contract demand but not on
the actual basis.

REJOINDER BY DISCOMS TOWARDS PERFORMANCE RELATED ISSUES

(PARA 169 TO 338)

Business Plan and maintainability of ARR

169. TPWODL stated that as regards to detail agreement between TPWODL, GRIDCO, &
Government of Odisha, it is to state that the Commission has sold the Utility to
TPWODL as per section 20 & 21 of Electricity Act 2003 through a suo moto
proceedings vide Case No. 82 of 2020. In the same case the learned objector was a
respondent. The queries raised by the learned objector has been duly addressed in the
vesting order.

170. NESCO Utility, TPWODL erstwhile WESCO Utility and TPSODL erstwhile
SOUTHCO Utility have stated that the Annual Revenue Requirement and Retail
Supply Tariff Application for the financial year 2021-22 has been filed under section
62 and other applicable provisions of the Electricity Act, 2003 and in conformity with
the provisions of OERC (Terms and Conditions for determination of Tariff)
Regulations,2004 and OERC (Conduct of Business) Regulations, 2004 and OERC
(Terms & Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)
Regulation, 2014. TPSODL also submitted that it is in the interest of consumer the

45
 distribution business should run in a healthy manner. Looking into the present reality
the application is filed as per provisions of act and regulation. The applicant duly
considered the principles of reform act. SOUTHCO utility/TPSODL stated it is
complying orders of the Commission time to time.

171. NESCO Utility and TPWODL/WESCO Utility has stated that they relied upon the
Audited Accounts up to March 2020 and actual data up to Sep-20 for compilation of
data and preparation of this ARR. The projected revenue GAP has been derived on the
basis of anticipated revenue & expected cost. Revenue includes sales from all category
of consumers along with other miscellaneous income. As regards to cost it includes
substantial amount towards power purchase, transmission charges which are
uncontrollable & due care has been taken to project the distribution cost which
includes Employee cost, A&G, R&M, Interest, Depreciation, Provision for bad debt.
The costs are also being projected considering the normal permissible escalation
approved by Commission. Wherever additional cost has been claimed, justification for
the same has been provided along with. TPSODL/SOUTHCO Utility has stated it
proposed to bridge the Revenue Gap for the FY 21-22 through reduction in Bulk
Supply Tariff (BST), grant of subsidy from the Government of Odisha as per Section
65 of the Electricity Act 2003 and balance, if any increase in Retail Supply Tariff.

172. NESCO Utility submitted that the Business Plan for the 4th Control period is under
finalisation and will be submitted before the Commission. The audited accounts of the
utility for the FY 2019-20 has been submitted before the Commission

173. TPCODL has submitted its plan for meter reading and bill collection through new
business associates in its Annual Business Plan for FY 2020-21 and also in the ARR
submission (please refer section 4.5.3 A&G Expenditure). The O&M Expenditure for
FY 2020-21 and also for FY 2021-22 has been worked out on that basis. TPCODL
will submit any further details as directed by the Commission

174. Regarding, submission of Business Plan as per vesting order, TPWODL has been
directed to submit its five-year business plan before the Commission for the period FY
21-22 to FY 25-26. The same shall be submitted in due course.

175. Now after takeover of the Utility by TPWODL, as per vesting order TPWODL shall
file it’s CAPEX plan, OPEX plan & Business plan in due course of time. However, as
regards to ensuing year the additional requirement towards R&M, A&G and

46
 Employee cost shall be appended during tariff hearing process.

176. TPWODL/WESCO Utility stated that it has already complied the direction of the
Commission order. The details of such compliance has been briefed in the ARR filing
vide para 5.1 (page 93 to 95) which may kindly be referred.

177. TPSODL submitted that it is honouring all orders and regulation of OERC and
extending the same to the consumer time to time.

GRIDCO Cost

178. TPWODL/WESCO Utility stated in case of power purchase cost that the licensee has
sourced it’s entire power purchase requirement from GRIDCO only. The learned
objector might have perused from the quantum of purchase sourced from GRIDCO
from it’s ARR. Hence, apprehension of not sourcing the Bulk power from GRIDCO
may be ruled out.

179. TPSODL/SOUTHCO Utility stated due to inadequate cash flow of revenue from
consumers the utility unable to pay the BSP bills to GRIDCO on monthly basis.

180. TPCODL stated it appreciates the observation of the respondent that the Power
Purchase expenses form a major component in the ARR of the Distribution Company
like TPCODL. However, TPCODL do not agree that TPCODL is showing a
lackadaisical attitude towards the tariff filings of GRIDCO ARR petition. TPCODL
stated they are aware that Power Purchase made by GRIDCO is through Long Term
arrangements/PPAs that have been tied up in the past and inherited by TPCODL
through the Vesting Order. The Tariffs under the PPA have either been approved by
the CERC or the OERC or have been discovered through the competitive bidding. In
such Long Terms arrangements, the tariff has been determined on the basis of the
Tariff Regulations, approved capital cost and other parameters which leave very little
scope for revisiting them and a distribution company like TPCODL cannot do much
about it in the Tariff Petition of GRIDCO. TPCODL has therefore not commented on
the ARR of GRIDCO. TPCODL stated that it is actively participating in various
matters before the Commission. TPCODL has been providing its objections/
suggestions in various cases (e.g- Case 52/2020 in the mater of Grid Support Charges
as filed by OPTCL, Case 55/2020- in the matter of true up petition filed by OHPC,
Case 57/2020- in the matter of Auxiliary power Consumption at PGCIL s/s etc) and
will continue to do so in future.

47
181. In regard to the objection raised by the objector, it is submitted by TPSODL that the
applicant buys power in a lowest price among four discoms.

182. NESCO Utility submitted that, in reply to contention the Utility has entered into long
term power purchase agreement with GRIDCO as per the Reform Act and all the
receivables of the utility is wholly paripassu charged with GRIDCO by way of Escrow
Arrangement. The termination of the agreement is vested on the Commission’s
interference in form of revocation or expiry of the licence either of bulk supply or
retails supply. So long as the agreement is in force the utility is bound to purchase
power from GRIDCO at rates determined by the Commission. NESCO has no other
avenues to purchase power at the cheaper rates.

183. NESCO Utility submitted that, in reply to contention the objector has remarked in
wrong notion. The projection has been done as per the changed sales/consumer mix
scenario and necessarily the projection cannot be distinctively compared to that of the
actual.

184. NESCO Utility submitted that, in reply to contention the objectors have analysed and
interpreted the data as submitted in his own skill and knowledge and all are of
advisory in nature. The utility has noted it for future reference.

185. TPSODL/SOUTHCO Utility in reply submitted that the TPSODL will examine the
suggestion of objectors on GRIDCO cost.

186. TPCODL submitted that, TPCODL wish to submit that following documents have
been executed with GRIDCO and are available with the Commission.

 Share Acquisition Agreement signed between GRIDCO & TPCL

 Shareholder Agreement signed between GRIDCO & TPCL

 Bulk Supply Agreement signed between GRIDCO & TPCODL

Also, Bulk Power Transmission and SLDC Agreement have been signed between
TPCODL and OPTCL and same is also available with the Commission.

Regarding tariff rationalization commensurate with cost of supply:

187. NESCO utility stated that it has proposed the tariff rationalization measures with their
justifications in the ARR application.

48
 Performance related issues

AT&C Loss and Collection Efficiency

188. NESCO Utility stated that it is duty bound to reduce the losses over the years and the
ground realities, infusion of subsidized consumers by way of Rural Electrification is
mainly attributable to contain the T & D losses. Despite the adverse condition the
utility is able to contain the T & D Losses. The utility is taking all possible measures
to reduce AT&C loss. Vigilance activities have been strengthened. Checking squads
have been deployed to arrest unauthorized abstraction of energy. All the consumers
have been covered under GPRS based photo –billing. The utility has also provided
online cash collection counters. To improve the reach to the consumers, the utility has
engaged various service providers for easy payment options. AMRs have been
installed for accessing the meter data remotely. The utility is taking all possible
measures to reduce loss level. Checking squads have been deployed. The loss level for
the FY 2021-22 has been projected taking the actual current loss level into
consideration.

Distribution loss has been reduced from 32.20% in 2010-11 to 13.19% in 2019-20 and
AT&C loss from 36.04% to 25.01% in 2019-20. The utility is taking all steps for
achieving the target set by the Commission.

189. TPWODL/WESCO Utility submitted that the actual AT & C Loss during FY 2019-20
was 28.56%. For the current year FY 2020-21 having Covid-19 effect the company
has estimated the same to be within 26.22%. During ensuing year proposal has been
given to achieve 24.42%. However, the Commission has recorded in the vesting order
vide Case No. 82 of 2020 that the operating company has committed to achieve AT &
C Loss of 27.56% for FY 2021-22.

190. TPWODL/WESCO Utility submitted that it is the concern of the learned objector that
AT&C loss is directly proportionate to collection efficiency & the licensee has not
disclosed the collection out of levy of penalty u/s 126 and arrear collection.

In this regard it is to state that, penalty u/s 126 is not the normal practice to earn
revenue. Assessment u/s 126 is being made only when there is theft or unauthorized
use of electricity. The licensee has regards to its customer and expects the consumer
has to use the electricity supplied in judicious manner. Hence, projection towards
collection u/s 126 cannot be made. Similarly, TPWODL has committed in the bidding

49
 process to collect Rs 300 crore from arrear and is duty bound to disclosure the same
before the Commission. The licensee has also made a disclosure in F-9 format
collection out of current and out of arrear.

191. TPWODL/WESCO Utility stated that the analysis made by the learned objector
towards past years performance against proposed & approved indicates the variation is
within 1% to 2%. During FY 2019-20 the proposal was 27.71% but actual was
28.56%. It is a fact that due to nationwide lockdown on account of Covid-19, March-
2020 collection was affected seriously and the shortfall was around Rs 100 crore in LT
w.r.t. March-2019. Had the LT collection during March-2020 stands like March-2019,
the AT&C loss would have been around 26%. During the current year performance in
LT sector has been tremendously improved.

As regards to T&D loss & AT&C loss during the current year till Sep-2020 it was
25.51% and 32.78% respectively. The same figure as on Nov-2020 is 24.46% and
30.07% respectively.

192. TPSODL/SOUTHCO Utility given the detail year wise information regarding
collection and reduction of AT&C loss is submitted.

Table – 14
Performance Year-Wise from 2013-14 to 2019-20
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Input
Total 2915.555 3192.837 3282.784 3268.063 3468.182 3638.946 3468.628
Billing(MU)
Total 1720.363 1947.733 2077.871 2141.148 2334.116 2555.880 2619.974
T& D Loss (%)
Total 41% 39% 37% 34% 33% 30% 24.5%
Billing (Rs. Lakhs)
Total 79130.18 86258.76 96598.38 99405.72 109459.22 119889.93 127946.04
Collection (Rs Lakhs)
Total 71891.37 78278.43 85587.09 89367.07 100094.56 104245.27 107913.92
Collection Efficiency (%)
Total 91% 91% 89% 90% 91% 87% 84%
At & C Loss (%)
Total 46% 45% 44% 41% 38% 39% 36%

193. TPSODL submitted that it has around 23 Lakh consumer with around 9.30 lakh BPL
consumers who are billed @ Rs85.00 per month are located in inaccessible areas of
Malakangiri, Koraput, Nawrangpur, Jeypore, Phulbani and Boudh. So, the cost to
serve is higher than to the existing consumers in urban pockets. Due to large

50
 topographical area with BPL category of consumer the AT&C loss is higher than other
utilities. After addition of around 6 lakh consumer during year 19-20 it is in a
consolidation phase. SOUTHCO utility also stated that in order to reduce AT & C loss
no’s of steps has been taken to improve the billing efficiency and collection efficiency
in spite of the fact that out of 23 lakh consumers 9.45 lakh are BPL category
consumers. In order to improve the billing of industrial high value consumers
following steps has been taken as detailed below.

i. Installation of AMRs in 3-phase consumers having CD more than 20 KW.

ii. Key Consumer Business Analytic Cell set up to analyse the dump of the meters
of 3-phases for taking action at Corporate and Division level.

iii. Intensification of Vigilance Activities by creating separate vigilance cell at

Circle level. Action is being taken to engage more Nos of vigilance gangs at
Subdivision level.

iv. De hooking squad operating at Section level and installation of AB cables in

rural and urban areas.

v. Commencement of installation of Smart meters and prepaid meters.

vi. Analysis of photo billing is taken at the corporate level to find out the areas of
leakages and necessary action is being taken on the report of Photo Billing
agencies.

vii. No of disconnection squad has increased at the section level to improve the
collection and deployment of additional outsources personnel through the
agencies to improve the disconnection activity.

viii. This has already submitted before the Commission in ARR & RST application

194. TPSODL is committed for reduction of AT&C loss as per vesting order of the
Commission in the Case No 83/2020.However, despite all odds, with the help of
Capex programme TPSODL is committed to reduce the AT&C loss as envisaged in
the ARR.

195. TPCODL stated that for the purpose of estimating the Power Purchase Requirement
for FY 2021-22, TPCODL has considered an AT&C loss of 26.89% which is based on
the trajectory as committed in the Vesting Order. TPCODL has assumed a collection
efficiency of 97% for FY 2021-22, which is translating into a billing efficiency of

51
 75.37%. Such billing efficiency has been considered for projections of Power
Purchase from the sales projections.

196. TPCODL would like to however assure the respondent that notwithstanding the
Billing efficiency as considered above, for the purpose of tariff, TPCODL has
considered a AT&C loss of 23.7% as provided in the Vesting Order and it is on this
basis that the Gap has been worked out in the Table 5.3 and Table 5.4 of the petition.
The trajectory given in the Vesting order is as follows:

Table – 15
AT & C Loss Trajectory for Tariff Determination
Financial Year AT & C Loss
FY 2021 23.70%
FY 2022 23.70%
FY 2023 23.70%
FY 2024 22.00%
FY 2025 20.00%
FY 2026 18.00%
FY 2027 16.00%
FY 2028 15.00%
FY 2029 14.00%
FY 2030 13.50%

197. TPCODL wish to submit that the difference between Billing Efficiency and (100%
less AT&C losses) is reflective of the collection efficiency in any particular year.
TPCODL is trying to bridge this gap over the period of its operation.

198. TPCODL wish to submit that for the purpose of gap calculation, the AT&C Loss
mentioned in the Para-44 (b) of Vesting order (10 year AT&C loss trajectory for tariff
determination) has been considered. In other words, the power purchase cost as
estimated on the basis of the AT&C loss given in the Vesting Order has been
recalculated on the basis of the AT&C cost considered for Tariff computations. The
Gap has been computed accordingly. The re-computation has been done in Table 5.4
of the ARR petition.

199. TPCODL has submitted the figures for FY 2019-20 as per the actual data available.
TPCODL is executing various Capex schemes for AT & C Loss reduction. The
Commission has approved Capex of Rs. 280.63 Cr for FY 2020-21 against TPCODL’s
submission of Rs 344.44 Crores. TPCODL has submitted Capex proposal of Rs.
484.62 Cr for FY 2021-22 in the ARR petition. TPCODL is giving prime focus on 100
% metering & Energy Audit and different schemes are in progress towards this.

52
 TPCODL wish to submit that as explained above, the tariff would be determined on
the basis of the losses as provided in the Vesting order notwithstanding the actual
losses. Hence the consumers would be insulated to that extent from the actual loss.

200. TPCODL noted the suggestion on Engineer feeder manager and welcome the same.
TPCODL will study and implement appropriately.

201. In the case of improve efficiency and as regards the losses, for the purpose of
projections, TPCODL have considered the same equal to the losses as committed by
us in the Vesting Order which is an improvement over the present losses. Hence
TPCODL is not able to appreciate the observation

202. TPWODL/WESCO Utility has stated with respect to Analysis of Revenue GAP on

i. Suggestion for higher average rate:

The licensee has projected the revenue considering consumer growth in Domestic
category on account of SAUBHAGYA scheme. Similarly, in case of mega lift
initiative by Government of Odisha lot of Agricultural consumption would be
increased. Hence, considering the above factual aspects average rate as proposed is
quite justified. Suggestion, to consider higher average rate of Rs 4.50 per unit by the
learned objector would only be possible if RST would be increased.

ii. Billing efficiency of FY 2019-20 w.r.t. ensuing year:

As explained earlier due to good sales mix during FY 2019-20 the efficiency was
better. Covid-19 was started from 23rd March 2020. So, the effect of Covid-19 was
started from Apr-2020 onwards due to which current year till Sep-2020 AT&C
position is 32.70%. Presently almost all the industries are struggling to operate in their
normal mode. Considering, such scenario projection of ensuing year may please be
considered.

iii. GAP between AT&C loss & T&D loss during FY 2019-20

During the ensuing year the GAP between AT&C loss & T&D loss of around 10% is
due to shortfall of LT collection of around Rs 102 crore during March-2020 w.r.t.
March-2019. The respondent is well aware that the DISCOMs across the country used
to collect handsome amount from LT sector during March only. During March-20
sudden lockdown from 23rd March-2020 badly affected revenue collection of the
licensee with compare to March-2019. Normally March collection compensates the

53
 shortfall of previous months and overall AT&C loss reduces. The same did not happen
during March-2020.

iv. Other cost under power purchase cost:

It is not other cost, it is the adjustment of debit bill raised by SLDC on account of DPS
on UI bills.

As per format-F6 it is clearly depicted under SLDC charges. Similarly, for ensuing
year other cost under power purchase head as noted by the learned objector is not
correct. The SLDC charges is shown as Rs 1.21 crore for ensuing year.

203. NESCO utility stated that it observes the provisions of regulations and all the
applicable rules and the provisions of Tariff order.

Also OERC (Conduct of Business) Regulation 2004 has been filed on 1.12.2020. The
application for approval of open access for the financial year 2021-22 has been filed
on 1.12.2020. The applications have been filed with the projection of parameters for
the ensuing year. NESCO Utility prayed that the Commission may approve the open
access charges for the financial year 2021-22 basing on the approved figures for the
ensuing financial year and as per the provisions of OERC (Terms and Conditions of
intra State Open Access) Regulation, 2020.

204. NESCO Utility stated that the petitioner’s contention of unprecedented increase in
tariff to HT/ EHT consumers from the year 2010-11 has relevance to the equal
increase of BST Bills during the periods, which is clear from the table provided by the
objector.

205. TPWODL/WESCO Utility has stated on Average cost of supply vs Average Revenue,

The learned objector has made a comprehensive exercise to proof actual cost of supply
of all the DISCOMs vs approved cost of supply for FY 2019-20. From the calculation
it is observed that the objector has wrongly divided the total actual cost of FY 2019-20
with total input. But, the Commission while approving the ARR, Average cost of
supply of Odisha has been judiciously calculated on saleable unit. So on the basis of
the Commission’s method the Actual Average cost of supply for FY 2019-20 would
be (Rs 10583.81 crore/19729.86 MU) i.e. Rs 5.36 per unit against the Commission’s
approval of Rs 4.99 per unit for the same year. Therefore, the analysis so made needs
to be rechecked. There is no such error in calculation of average cost of supply by the

54
 Commission for FY 2019-20 and also in past year. Similarly, the other points
regarding, Commission’s past errors in calculation of Average cost of supply is
responsible for tariff hike is not correct.

206. TPSODL has prayed to bridge the Revenue Gap for the FY 2021-22 through reduction
in Bulk Supply Tariff (BST), grant/ subsidy from the Government of Odisha and
balance if any through increase in Retail Supply Tariff. The logic to bridge the
revenue gap has been enumerated in different paras of the ARR and RST application.
Regarding AT&C Loss, SOUTHCO Utility now TPSODL has proposed to reduce
4.54 % during FY 2020-21& 4.24% during 2021-22. SOUTHCO Utility presently
TPSODL has taken various measures such as replacement of 4.5 lakh meters for
consumer billed under defective category further all household is electrified under
Soubhagya Yojana.

207. As regards the observation that the Miscellaneous receipt of Rs. 192.25 Cr as
mentioned by one of the respondents, the same is not correct. The Miscellaneous
receipt as projected by TPCODL for FY 2021-22 is Rs. 109. 56 Crores (Please refer
Table 4-24 in page 62 of the ARR petition). It may be corrected.

208. TPCODL stated that the data for FY 2019-20 (Form F-6) provided to the respondent.
Objector has pointed out the distribution cost of FY 2019-20 is very high (Rs. 3155.44
Crores) due to inclusion of interest on Loan of Rs. 1966.71 Cr and interest on security
deposit of Rs. 46.66 Cr. In this regard, TPCODL wish to submit the following:

 No Carry forward of Losses

i. TPCODL has commenced operation from 1st June 2020 on the basis of the
new Balance Sheet provided in the Vesting Order. TPCODL would be filing
true up petition only after completion of 10 months of operation in FY 2020-21
on this new balance sheet. TPCODL wish to assure the stake holders like the
respondent that TPCODL has not carried forward any past losses to the present
year of filing i.e FY 2020-21 and FY 2021-22 and computed the ARR on the
basis of the new balance sheet provided in the Vesting Order. Hence the
apprehension of the respondent may be allayed to that extent.

ii. On the interest on loan part, TPCODL would like to mention that the figure of
Rs. 1966.71 Cr was the value of total interest accrued and due as appearing in
the provisional balance sheet of erstwhile CESU as on 31.03.2020 available at

55
 the time of ARR preparation. As the final audited balance sheet of erstwhile
CESU as on 31.03.2020 is available now, TPCODL is providing the updated
break up of total accrued interest and due as on 31.03.2020 in table below.

Table –16
Revenue Requirement & Analysis of GAP
(Rs. In Crs.)
Expenditure Actual for the previous year FY 2019-20
EHT HT LT TOTAL
Power Purchase Cost (A)
Cost of Power 273.90 406.40 1468 2148.62
Transmission Charges 25.99 38.57 139.34 203.9
SLDC Charges 0.19 0.29 1.03 1.51
Total Power Purchase cost 300.08 445.26 1608.37 2354.03
Distribution Cost (B)
Employees Cost 0.00 172.74 624.12 796.86
Repair & Maintenance Cost 0.00 6.50 23.47 29.97
Administrative & General Expenses 0.00 38.93 140.64 179.57
Bad & Doubtful Debt 0.00 5.66 20.46 26.12
Depreciation 5.11 7.57 27.37 40.05
Interest on loans - 426.34 1540.37 1966.71
Interest on Security Deposits 5.95 8.83 31.89 46.67
Discount to Consumer 7.38 10.95 39.55 57.88
Return on Equity 1.48 2.20 7.95 11.63
Int. on working Capital
Total Distribution Cost 19.92 679.72 2455.81 3155.45
Total Appropriation[C]
Amortisation of Regulatory Assets
True Up of Past losses 498.89 740.23 2674.46 3913.58
Other, if any
Total Special Appropriation 498.89 740.23 2674.46 3913.58
Total Cost (A+B+C) 818.89 1865.19 6738.96 9423.04
Less: Miscellaneous Receipt 19.67 29.18 105.44 154.29
Ttal Revenue Requirement 799.22 1836.01 6633.52 9268.75
Revenue from Tariffs (at Existing Rate) 661.21 1104.07 1457.18 3222.46
Deficit/Surplus at Existing Rate 138.01 731.94 5176.34 6046.29

Table – 17
Total Interest on Loan as on 31.03.2020 as per audited balance sheet (Rs Cr)
Type of Loans OB Of CB of OB of Interest Total CB
Loan as on Loan as on interest accrued in of interest
31.03.2019 31.03.2020 accrued & FY 2019-20 accrued &
due as on due as on
31.03.2019 31.03.2020
R APDRP Loan Part-I (GoI)-PFC 168.37 168.37
R APDRP Loan Part-II (GoO) 175.47 175.47 43.84 21.93 65.77
APDRP Loan 37.09 37.09 167.45 24.54 191.99
IBRD 204.51 204.51 1331.63 206.19 1537.82

56
GRIDCO 277.70 277.70 150.97 0.00 150.97
CAPEX Loan 294.34 294.39 42.10 7.73 49.83
Working capital loan from Gridco 174.00 174.00
Total 1331.48 1331.53 1735.98 260.40 1996.38
Interest capitalized 29.66 115.61
Net accrued interest & due after 230.73 1880.77
capitalization
Note: Only interest RAPDRP Loan Part-II (GoO) and Capex loan are considered for Capitalization

However, such interest amounts have not been used for computation of ARR since the
ARR prepared is on the basis of the Balance Sheet provided through the principles of
Vesting Order.

209. The Commission has issued tariff order for FY 2020-21 for erstwhile CESU in the
matter of Case 70/2019 on 22.04.2020. TPCODL took over the operation from 1st
June 2020. The Capex plan for FY 2020-21 was approved by the Commission in its
order dated 08.09.2020 and Opex plan was approved in order dated 16.11.2020 despite
the approval it had given in tariff order dated 22.04.2020. TPCODL has filed its ARR
with the Balance Sheet as provided in the Vesting Order and hence it is our
submission that there is a large difference in the situation on the basis of the Tariff
order for FY 2020-21 and the situation after taking over from 1st June 2020. Hence in
our humble submission, the 10 months of FY 2020-21 needs to be reconsidered by the
Commission.

However, TPCODL wish to submit that the true up petition for FY 2020-21 will be
submitted by the petitioner after it completes 10 months of operation in Mar 2021.

210. TPCODL note that the observations by one of the objectors are very general in nature
and not based with any calculations and reference to the ARR petition. In absence of
the same, TPCODL are unable to provide our comments. On particular observation, as
regards the projected sales, employee costs and other expenditure, TPCODL have
provided the details and the justification for the same in the ARR petition. The
objector may like to draw our attention to any specific part of our submission.

211. WESCO Utility submitted that the table proposed by the objector for analysis purpose
needs to be self-substantiated with appropriate data. Directing the licensee to filled up
the vacant places from 1998-99 onwards has no relevance in ARR proceeding for FY
2021-22.

57
 Distribution Loss Target

212. NESCO Utility submitted that for projecting the consumption of different categories,
the Utility has analyzed and relied on the past trends of consumption pattern for last
twelve years i.e. FY 2010-2011 to FY 2019-20 and actual sales data for the first six
months of FY 2020-21, the impact of electrification of new villages under the
DDUGJY, RGGVY, Biju Saharanchal Vidyut Yojana and Biju Grama Jyoti Yojana,
SAUBHAGYA, actual addition/reduction of loads and other factors such as global
recession, drawl of power through open access along with temporary closure of
consumers in HT/EHT Category (steel & mining industries). The details have been
submitted in the ARR application of the applicant.

213. TPWODL/WESCO Utility submitted that the projection for ensuing year with higher
T&D as compared to previous year:

The actual distribution loss for FY 2019-20 was 19% and AT&C loss of 28.56%. Due
to Covid-19 the position has drastically changed. Till Sep-2020 the AT & C loss was
32.78%. Having, such difficulty the proposal of AT&C loss for FY 2021-22 has been
projected as 24.42% is considered to be optimistic. The same has been indicated in T-1
format. Now almost all the industries, commercial establishment, public institutions,
malls, cinema halls etc. are yet to breath in normal mode. Keeping all aspect into
consideration the sales mix for the ensuing year obviously would not be enriched like
2019-20. Therefore, the T&D loss as projected for FY 2021-22 may kindly be
considered.

Now, after taken over of Wesco Utility by TPWODL, as per vesting order TPWODL
is committed to achieve the following AT&C loss target.

Table – 18
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
27.56% 25.56% 22.50% 20.50% 18.50% 14.50% 12.50% 11% 9.50% 9.08%
Similarly, the Commission has also made it clear in the vesting order that for tariff
determination process the AT&C loss of 20.40% would be retained for the year FY
21-22.

214. TPCODL stated that TPCODL has been billing as per the Tariff Order and also the
transformer losses as per Regulation 97 (vii) of the Supply Code 2019. TPCODL shall
appreciate if specific instances are mentioned for our attention.

58
215. TPWODL/WESCO Utility stated asset details as on 31-03-2020 is as follows

Table – 19
Network Asset Description Unit Quantum
33kv lines C.K 4595
33/11kv S/S Nos. 261.00
11 kv lines Km 43071
Nos of DTR Nos. 62516
LT lines C.K 53819

216. TPWODL/WESCO Utility stated that certain amount of power purchase cost has been
allocated under wheeling head. This is nothing but 8% loss on HT system as allowed
by the Commission. As the total input after EHT sale will be wheeled through 33 Kv&
11Kv line, the permissible loss of 8% and the cost there of has been allowed under
wheeling cost which may kindly be approved.

217. In reply to transformer loss it is intimated that licensee TPSODL is adhering the
regulation framed & amended from time to time. In regard to the suggestion of the
objector noted for further rectification measures at our end.

Energy Audit

218. NESCO Utility stated that the status of energy audit along with the plan of action has
been detailed in the application of the utility. NESCO has completed energy audit of
74 nos. of 33KV feeders out of 77 nos. (excluding 14 nos. of dedicated 33KV
feeders). Energy audit of balance 3nos of 33KV feeders will be covered by March’21.

NESCO has completed energy audit of 617nos of 11KV feeders out of 720Nos.
Consumer tagging of the balance 11KV feeders are under progress, which are mainly
new lines added for ODSSP s/s.

219. NESCO Utility stated that it is making all efforts to adhere to the SOP standards set by
the Commission and as per the direction of the Commission, the utility has done SoP
audit in 2016-17 and also in 2017-18 and also third party audit for 2018-19. The
Mandatory Audit and the M&V audit also completed as per the mandates of Energy
Conservation Act.

220. TPWODL/WESCO Utility submitted that the details of Energy audit have already
been submitted in ARR vide page 25 to 63 in para 2.5.1 which may kindly be referred.

221. TPWODL/WESCO Utility submitted that with the existing resources the licensee is

59
 conducting the energy audit. The observation of the learned objector to enhance the
energy audit for better result is a welcome note and now the new TPWODL
management is committed to carry out the energy auditing activity in scientific and
professional manner and in coming years it will yield result.

222. TPSODL/SOUTHCO Utility submitted that the energy audit is already carried out in
109 no’s of 11 KV feeders and submitted before the Commission. During the FY
2019-20, TPSODL has meter functioning 302 nos of 11 KV feeders against total 772
KV feeders. In order to complete metering arrangement at all 33kv feeders, 11kv
feeders, Distribution transformers and consumers, an amount of Rs 156.58 Cr &Rs
27.3 Cr has been approved under DDUGJY & IPDS Schemes respectively. The work
is being taken up presently under IPDS scheme. The details of EA of 33 KV and 11
KV feeders is enumerated in Para 5.7 of the application. Further as per direction of the
Commission the utility has carried energy audit in three loss making feeders of Aska
and Nowrangpur Division

223. Energy audit activities have been carried by TPCODL and erstwhile CESU regularly
since several years and the reports are being submitted to different fora including the
OERC from time to time. The report contains various segment wise loss calculation
(33KV feeder, 11KV feeder & DT) including some analysis of high loss areas.

As regards the availability of meters, TPCODL wish to submit that some of the meters
required for 100% Energy Audit are in stock while the balance required for audit
would be sought through additional capital expenditure.

224. Under RAPDRP scheme, CYME software and license (which is a load flow software)
were handed over to TPCODL. To utilize this software, TPCODL has started the
network modelling of 33KV first and 11KV thereafter. It is expected that next year
end, all 11KV network would be completed and then load flow analysis will be
possible.

225. TPCODL submitted in case of Electrical inspection, TPCODL note that this query is
neither relevant to the ARR filed nor to any matter related to tariff as such. Hence
TPCODL is not able to provide any comment

226. TPCODL submitted that the electrical inspector time to time directs the Utility to
carry out modification of lines and substation as per requirement of safety. The same
was rectified immediately. TPCODL is of the opinion of the same as objector

60
 regarding waiver of annual inspection fees of lines and substation.

Employees’ expenses

227. NESCO Utility has estimated Employee cost to Rs.362.63 Crs for the FY 2021-22.
The man power details along with justifications have been elaborated under para 2.4
of the ARR application, which may please be referred.

Further, the details of component wise Employee cost upto November, 2020 has been
furnished before the Commission in reply to queries and is also available in the
website of the utility.

228. TPWODL/WESCO Utility submitted present employee strength as per ARR filing has
been given in ARR format F-12. As per vesting order the position of employee
strength as on 30th Nov-2020 is 2388 nos vide para 46(b).

229. TPSODL was allowed an escrow relaxation for an amount of 304.02 Cr during 2019-
20 and an amount 235.29 Cr during 2020-21 till Nov towards employees cost, Licence
fees and O&M cost.

230. TPSODL is running with minimum expenditure and escrow relaxation is allowed by
GRIDCO for employee costs only and other costs are met from MISC collections.
Now the utility is taken over by Tata power as per commitment in the vesting order it
will investment in capital works which will improve the power supply along with
consumer service in future years.

231. TPWODL submitted that in case of other income the amount of other income as
shown for FY 2021-22 amounting to Rs.192.25 Crore includes CSS projection of Rs
135 Crore. As per present practice CSS is to be put into escrow and hardly left around
Rs 57 crores to be earned from meter rent, DPS,ODP, reliability surcharge. The
amount of Rs.57 crore is not sufficient enough to meet normal A&G expenses for
which escrow relaxation is not being given.

Now, as per direction of the Commission in vesting order, on submission of LC, for
payment of BSP & Transmission charges with 07 days, the escrow arrangement shall
be discontinued and the lien/charge created on the bank account/escrow account of
TPWODL shall be vacated. Hence, with the above proposition the position during
ensuing year would be changed and the operating company an spend the required
amount judiciously after payment of BSP, Transmission charges & SLDC charges.

61
232. TPCODL submitted that as per the Vesting Order directive, TPCODL was required to
submit a detailed management structure and staff deployment plan within 45 days of
effective date. Accordingly, it was submitted on 15th July 2020. Also employee
addition and expenditure details were submitted as a part of Opex in Annual Business
plan (Case No 41 of 2020) in July 2020. In Annual Business Plan approval order dated
16.11.2020, the Commission has taken notice of the fact that there has not been any
significant addition of manpower during last 10 years in the DISCOMS causing
appreciable shortage of manpower and widening the ratio of employees to consumer.
In this order, the Commission has approved addition of 8% of total proposed
manpower in current year i.e FY 2020-21 and TPCODL is accordingly adding
manpower and the same has been presented in the ARR petition.

233. TPSODL submitted that the remuneration benefit is extended to the consumer after
submission of bills by the consumer regarding works taken up by the consumer as per
Regulation 13(1) and Appendix-1 of OERC Distribution conditions of supply Code
2004., Further it is submitted that TPSODL is following the Remunerative calculation
as per Appendix(I) of regulation (27) (29) of new regulation 2019.Further
remunerative Calculation is attached with the estimate. SOUTHCO Utility/TPSODL
has already issued a circular in this regard to its field offices to follow the same
strictly.

234. TPWODL stated that concerned regarding adherence to remunerative calculation

should not be there. The licensee is strictly observing the same.

Expenses to Employee Terminal Fund

235. NESCO Utility submitted that in case of Expenses on Terminal Benefit the objector’s
contention as regards the recruitment of employees w.e.f. Jan’2005 coming under non-
pensionary benefits is true. But as regards the terminal benefits, it is not necessarily
covers only pension. The terminal benefits which are provided are as under:

 Pension Provision for the pensioners in roll and the employees coming under
Age Old Benefits.

 Gratuity Provision for all class of Employees

 Leave encashment on Superannuation for all class of Employees

 Employer’s Contribution of Provident Fund for the Contributory Provident

62
 Fund for those classes of employees opted for Non-Pensionary and employees
recruited w.e.f. Jan’2005.

So, contentions of the objector as regards the reduction of the provision of terminal
benefits with special reference to the pensioners only are not the fact.

236. TPWODL submitted that in case of Expenses on Terminal Benefit presently the
terminal dues are being approved by the Commission on cash out go basis. Similarly
on sale of Utility to TPWODL, as per vesting order the monthly pension, gratuity,
leave encashment etc has to be reimbursed to the trust by the operating company i.e.
TPWODL. The cost of such terminal dues shall be passed on in the ARR. Therefore,
funding of trust liability through ARR may not be a better proposition.

Administrative &General expenses

237. NESCO Utility submitted that the Administration and General expenses for the
ensuing year have been forecasted based on estimated expenses during FY 2020-21.
Estimation of higher A&G expenses during ensuing year has been made on account of
mass engagement of franchisee, Customer care centre, vigilance activities,
disconnection squad expenses, etc detailed in the application. In line with the
Commission’s order A&G expenses for the ensuing year has been projected by
considering 7% increase over estimated A&G expenses for FY 2020-21

Depreciation Cost

238. NESCO Utility submitted that depreciation has been provided only on assets available
at the beginning of the year and no depreciation has been provided on assets created
during the year. The method adopted for calculating depreciation is Straight Line
Method (SLM) at pre-92 rates. The numerical details are given in OERC Form F-19 in
the ARR application.

Repair and Maintenance expenses

239. NESCO Utility submitted that the Repair & Maintenance (R&M) expenses for the
ensuing year FY 2021-22 has been estimated on the basis of 5.4% of Gross Fixed
Assets (GFA) including BGJY and assets under SAUBHAGYA Scheme at the
beginning of the year. The opening GFA works out to be Rs. 1971.84 crores, based on
which the proposed R&M expenses is to the tune of Rs 106.48 crores.

240. TPWODL submitted that in case of R&M Activity: - It is fact that due to want of

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 adequate escrow relaxation under R&M head, approved amount could not be spend.
Now, TPWODL is committed to spend the approved amount towards R&M head.

241. TPSODL is in the process of preparation of detail roadmap for taking up operation&
maintenance work in the area.

242. TPWODL submitted that as regards to Government approved CAPEX scheme it is to

state that for strengthening 33 Kv line, 11 Kv line, LT line, capacity enhancement of
33/11 Kv Grid substation, DTR, etc. till Dec-2020 Rs 167 crores has been spent under
the Capex scheme.

243. TPWODL submitted that amount sanctioned, amount spent and benefit out of various
Capex scheme has already been briefed in the ARR vide para 3.1.2. may kindly be
referred.

244. TPSODL stated that the detail of govt schemes with amount spent is given below for
information of the petitioner.

Table – 20
The proposed Investment under different Schemes is as under.
Name of the Scheme Budgeted Amount spent Likely date of
amount up to 19-20 completion of the project
CAPEX 196.97 146.77 FY 2020-21
th
RGGVY (12 Plan) 979.24 783.00 FY 2020-21
RAPDRP-A 0.00 0.00 NA
RAPDRP-B 0.00 0.00 NA
DDUGJY 440.74 289.00 FY 2020-21
IPDS 259.09 195.80 FY 2020-21
ODSSP 823.46 482.69 FY 2020-21
BGJY 176.19 150.04
BSVY 29.29 15.67
RLTAP 34.03 20.65

245. TPSODL/SOUTHCO Utility stated that the detail of which is submitted in our ARR &
RST application 2021-22. Presently TPSODL will do valuation and auction of scarp
time to time.

246. For the FY 2021-22, TPCODL has considered the following Capex schemes that have
been approved under following categories.

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 Table - 21
Capex Schemes to be initiated in FY 2021-22
SL. Major Activity Capex Req. Capitalization
No. Category (in Cr.) (in Cr.)
1. Statutory& Equipment Enhancing Safe Work 5 5
Safety Environment
Installation / Construction of Plinth fencing 4.5 4.5
or Boundary wall of DSS or GSS Area
development wherever substation.
Development of Meter Testing Lab and its 20.75 18.15
Accreditations. Installation of Smart Meters
at Distribution Transformers
30.25 27.65
2. Loss Old Electromechanical Meter and Defective 93.95 79.86
Reduction Meter’s replacement
Infrastructure for spot billing & spot 3.55 3.55
collection
Equipment like Accucheck, CMRI, Digital 0.92 0.92
Camera etc.
11KV Feeder Optimization 19 15.2
117.42 99.53
3. Reliability SCADA Implementation 25 17
GSAS Implementation 35 28
33KV and 11 KV Sick Equipment 15 12
Replacement
33KV System improvement schemes- 10 8
Feeders
33KV System improvement schemes- 10 9
Equipment like 33KV RMU, isolators etc.
New 33KV Lines for power evacuation from 30 24
OPTCL Grid
11KV System improvement schemes- 15 12
Feeders
11KV System improvement schemes- 20 17
Equipment like AB switch, RMU, ACB,
MCCB
160 127
4. Load Growth Meter installation for all new connection 32.49 27.62
Network extension to release new connection 20 16
Addition/Augmentation of Power 15 12
Transformers
11KV System Augmentation 10 8
77.49 63.62
5. Infrastructure Infrastructure for customer Care, Call 5 5
Centre, Payment Centre and Section Offices
IT & Technology for process efficiency & 38.41 15
enhanced productivity
Implementation of GIS Roadmap 27 20
Transformer Repairing Workshop 7 5

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SL. Major Activity Capex Req. Capitalization
No. Category (in Cr.) (in Cr.)
Central Store development 5 5
Civil upgradation 14.8 14.8
Ready to use assets for offices 2.25 2.25
99.46 67.05
Grand Total 484.62 384.85

It can be seen that the Capex proposal of TPCODL covers a wide range of areas
including areas where physical improvement of the Distribution System is envisaged.

247. As regards the observation of heavy capitalization by TPCODL, it is submitted that

the Capex has been proposed with the intention of bringing in improvement in the
system and working –whether it is loss reduction, safety or improving reliability.
Hence the allegation of incurring capex only with the objective of earning a return on
equity is unfounded. Secondly it must be added that the Vesting Order (in Para 42 )
which is the foundation of the business of TPCODL itself stipulates that minimum
capex of Rs 1541 crores is required to be undertaken in five years. TPCODL is
required to comply with the same.

248. With regards to Capex objection TPCODL stated TPCODL has justified our capital
investment in the ARR petition. The respondent should specifically point out the
schemes on which he has an objection and the reasons for the same.

Provision for Bad and Doubtful Debts

249. NESCO Utility while estimating the ARR for FY 2021-22 has considered the revenue
from sale of power on accrual basis in line with the Commission’s Order on ARR and
Tariff Petitions for FY 2005-06 to FY 2019-20. However, as it is not feasible for
Petitioner to raise finance against huge accumulated loss to bridge the gap of
collection inefficiency, the Petitioner has considered the non-collectable amount based
on the collection efficiency as bad and doubtful debts while estimating the ARR for
FY 2021-22. Considering the proposed collection inefficiency of 7% for FY 2021-22
provisions for bad and doubtful debts at 50 % of the uncollected portion amounting to
Rs.81.85 crs has been considered as part of ARR for FY 2021-22. The Petitioner
humbly requests the Commission to consider the same to enable the Petitioner to
recover its entire costs after duly considering the performance levels.

250. TPWODL/WESCO Utility submitted that as regards to TPWODL is concerned there

66
 is no outstanding against BSP & Transmission charges till Nov-2020. Dec-2020 bill
raised during Jan-2021 has been paid/would be paid within due date.

251. TPWODL/WESCO Utility submitted that the outstanding position as on Sep-20

against various categories of consumers has been duly submitted in ARR in form F-
15. Other than disconnected consumers the outstanding amount is Rs 2976 crores.

252. TPSODL/SOUTHCO Utility submitted that in regard to Para-6 the regulation is

necessary in the interest of the state as well as interest justice to continue the
regulation-18 of OERC code-2019.However the Commission may examine the same.

253. TPCODL stated that following initiatives have been taken to collect the outstanding
dues:

 Billing Improvement Plan

o Implementation of SAP ISU for all Customers

o Reduction of Provisional Bill by replacement of Defective Meters

o Reducing House Lock and Not Read Cases by capturing the reasons
through Meter readers and taking corrective actions

o Reducing not traceable/ not found cases by coordination between

commercial and line staff; and subsequent action such as route change
or stop bill

o Check meter reading by Officials to inculcate discipline among meter

readers

o Enforcement drives to identify and address unauthorised use of

electricity and enforce discipline pertaining to theft

o Route sanitization through site verification by Meter Reader and Line

man to bring currently unbilled consumers into billing net.

 Collection Improvement Plan

o Higher coverage by motivation through R&R for Bill Collectors

o Encourage regular payee consumers in rural sections through R&R

scheme

o Additional 5,000 outlets for receipt of payment from consumers

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 through tie-up with IndusInd bank

o Organizing consumer interaction camps under “GaonChala” campaign

in remote village areas for spot collection and bill settlement

o Arrear collection and instillation of payment discipline in consumers by

Disconnection Squad at sub-divisional level

o Bill Correction/Revision through external CA firms for high value cases

at divisional level and also through 48 sub-division level teams for
other consumers, to address the billing grievance cases and convert
such consumers into regular payers

o Arrear collection by deployment of Ex-servicemen teams and section-

level bike squads by O&M staff

o Arrear Govt. Collection by following up through Division Team with

Govt.

Issues Related to HT / EHT Consumers

Take or Pay Benefit

254. NESCO Utility submitted that for providing special tariff to consumers with high load
factor, ‘Take or Pay’ tariff was allowed by the Commission. The aim was to
encourage the consumers with low load factor to draw power at higher load factor and
thereby avail special rebate. This would have been win-win situation for both the
consumers and the utility. Whereas in actual none of the consumer enhanced their
consumption to avail the said benefit, instead the consumers who were already
drawing power at load factor more than 80% in the FY 2011-12 got this benefit in
addition to graded slab benefit without any increase in their load factor.

As per introduction of ‘Assured Energy’ concept no such industries came forward to

avail the same. That means in the previous method there was no such efficiency gain,
but they were benefited because of Commission’s order only. The purpose of take or
pay tariff was defeated and accordingly the same was discontinued by the Commission
in the Tariff order for FY 13-14. Therefore, the applicant does not agree with the
contention of the objector that the consumption will go up, and prays before the
Commission not to allow more graded slabs.

255. TPWODL submitted that presently the Commission has approved load factor

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 discount, considering the submission of steel industries during FY 20-21 tariff
proceedings.

In case of HT Industries (1MW and above)

For Consumption beyond 70% LF, 10 paise per unit & consumption beyond 80% LF,
20 paise unit.

In case of EHT Industries

For consumption more than 80% LF, 10 paise per unit.

Therefore, suggestion of objector has already been addressed.

256. TPSODL/SOUTHCO Utility submitted that the Commission has withdrawn the “Take
or Pay “Tariff during FY 2013-14 and the reason also mentioned in the Tariff Order
FY 2013-14. Licensee is not in favour of further introduction of Take or Pay Tariff.

Imposition of Reliability Surcharge on all HT/EHT Consumers

257. NESCO Utility submitted that the need to supply uninterrupted power to high end
HT/EHT consumers is to be viewed in the overall perspective of a situation of system
unavailability / power deficit where a large number of ordinary consumers suffer
power cut during peak hours and also sometimes during the summer months.

For getting uninterrupted power supply in the adverse scenario, the high end consumer
must pay reliability surcharge to the utility, who may otherwise would have imposed
power cuts on those consumers.

258. TPWODL/WESCO Utility mentioned that the for levy of reliability surcharge two
pre-condition is a must

i. 99% reliable power &

ii. Voltage profile should be within the prescribed limit.

Presently, reliability surcharge is leviable to only HT consumers and prescribed limit

of voltage profile is +6% in higher side and -9% in lower side.

Submission of SAIDI calculation is not mandatory for levy of reliability surcharge.

259. TPWODL/WESCO Utility submitted that it may be noted that presently there is no
reliability surcharge for EHT consumer. The HT consumers are paying @ 10 paise per
unit which is 50% less than the previous one. At the same time TOD benefit has been

69
 enhanced to 20 paise per unit against 10 paise per unit. The objector will appreciate
the importance of reliable power for steel industries. Unless the licensee is committed
to do so most of the industries availing power in open access would be worst affected.
Keeping all such aspect it is submitted before the Commission to fix the reliability
surcharge @ 20 paise per unit for both HT & EHT industries.

260. The Commission introduced the Reliability Surcharge as per Regulation 141 of OERC
Dist. (Conditions of Supply) Code, 2019 to HT category of consumers. The reliability
index calculation and voltage variation report is attached with the energy bill in case of
TPSODL

261. TPSODL is of the opinion that the Reliability surcharge should continue and standard
of performance is the aspect which is to be adhered by the licensee.

262. TPSODL is supplying full-fledged dump report on payment of prescribed fees as per
direction of the Commission in the tariff orders. Further the load factor is defined in
chapter II (42) OERC Distribution conditions of supply code 2019 as follows.

“Load Factor” in case of contract demand of 100 KW and above is the ratio of the
total number of units consumed during a given period to the total number of units that
would have been consumed had the maximum demand been maintained throughout
the same period and is usually expressed as a percentage”. So the petitioner’s
submission is correct in this context.

263. TPCODL stated that in case of reliability index and surcharge TPCODL has noted the
requirement of the objector. At present, TPCODL is providing the computations to
those who are specifically asking for the same. However, TPCODL will instruct their
divisions to provide the computations to all those who are levied with such surcharge.

264. WESCO Utility submitted that reliability surcharge is also being levied as per
direction or the Commission. It is chargeable only when both the two preconditions
are satisfied i.e. 99% of reliable power along with prescribed limit of voltage of
supply. As per our record no such complain regarding non-compliance is registered.

Introduction of kVAh Billing (OR) PF Penalty for Three-phase Consumers

having CD<110 kVA

265. NESCO Utility submitted that, the contention of the objector regarding adoption of
KVAh billing is not true. Adoption of KVAh billing will help in maintaining the

70
 power factor and hence in system stability from technical point of view.

It is further submitted that, by adopting kVAh billing in place of kWh Billing the
recent pattern of Power Factor penalty imposed on the consumers will be abolished.
The objective of introduction of kVAh billing is to ensure reduction in losses which
occurs due to low power factor and for encouraging the consumers to maintain their
power factor near to unity Power factor.

266. NESCO Utility said that introduction of KVAh billing will improve system stability,
power quality and improve voltage profile. In the present tariff structure, the power
factor penalty is limited to only large consumers having contract demand more than
110 KVA. By adopting KVAh billing Medium and other 3phase consumers will also
be persuaded to maintain their power factor which will help improve the system
stability. With regards to the same it is to submit that in most of the States across the
country KVAh billing has already been introduced barring few states. Even the
neighbouring states like Chhatisgarh, Andhra Pradesh, Jharkhand, West Bengal (DVC)
have already introduced KVAh billing. The Madhya Pradesh who has not introduced
KVAh billing & continuing with Odisha pattern, but is levying higher charges both in
Demand & Energy as compared to Odisha. If KVAh billing would be introduced,
rather railway would be benefited on account of the P.F. penalty .So railway should
support for introduction of KVAh billing for overall gain.

267. TPWODL states that Railway is strongly objecting introduction of KVAh billing and
preferring adequate intimation before implementation. In this content it is to submit
that the licensee is pursuing since long for adoption of kVAh billing. the Commission
has also given indication in previous tariff orders and preferred to defer the same and
advises that the licensee needs to be fully equipped to carry out kVAh billing.
Presently, all the Licensee are fully equipped with static meters recording both KWh
&KVAh. Hence, introduction of KVAh billing in 1st phase at least for HT & EHT
consumers will not at all be a problem. KVAh billing is always better for the consumer
to avoid PF penalty, lead & lag current, etc. Forum of Regulation (FOR) has also
recommended KVAh billing during 2009. As of now most of the states like Jharkhand,
Chhatisgarh, Delhi, Maharahstra, Bihar, Punjab, Himachal Pradesh have already
adopted KVAh billing to some category of consumers. So, for a better system stability
and consumer benefit KVAh billing needs to be adopted. In addition to above, once
KVAh billing will be adopted the consumer will be automatically benefitted and

71
 requirement of power factor incentive would no longer be valid. If KVAh billing
would damage the network system, then most of the states across country would not
have implemented KVAh billing.

268. Support of learned objector/respondent for introduction of KVAh billing is appreciated

by WESCO Utility and further requests that the Commission may kindly introduce the
same during FY 2021-22 at least for HT & EHT category of consumers.

269. TPWODL submitted that the billing to consumers having less than 110 KVA is strictly
observed as per direction of the Commission.

270. TPCODL submitted that as per existing Tariff Order (Tariff order for FY 21 dated
22.04.2020 and Revision in RST & Open Access charges dated 23.09.2020), demand
charge is applicable to consumer >= 110kVA which is being adhered to by TPCODL.

Reintroduction of Third Slab for HT & EHT Consumers

271. NESCO Utility submitted that, as more and more industries are running in higher load
factors, the graded slab structure has been modified by the Commission.

272. TPWODL/WESCO Utility submitted that step to be taken to revive the induction
furnaces and introduction of three slabs:

Presently the Commission has extended two more benefits for HT & EHT Industries
sector.

I. Load factor incentive &

II. Withdrawal of reliability surcharge for EHT consumers
As per the newly introduced load factor incentive scheme consumers drawing power
more than 70% LF are eligible for 10 paise discount for consumption beyond 70% LF
and for the consumption beyond 80% LF the discount is 20 paise per unit. Similarly,
the reliability surcharge for EHT Industries @ 10 paise per unit has been withdrawn.

In case of EHT industries the load factor discount is 10 paise per unit for the
consumption beyond 80% LF.

In addition to above the benefit under TOD is @ 20 paise unit (for consumption
between 12 AM to 6 AM), prompt payment rebate of 1% if paid within due date,
power factor incentive, consumption for colonies in concessional rate to the extent of
10% of industries consumption. The demand charges of Rs 250/- per Kva per month to
the extent of 80% of CD or MD whichever is higher is also nominal as compared to

72
 other neighbor states.

As regards to introduction of three slab tariff structure it is to state that present two
slab is more beneficial rather than three slab. The following table is appended below
for more clarity.

Table – 22
For HT Industries
3 slab during 2012-13 Present two slab system*
Up to 50% LF NIL Up to 60% Nil
50% to 60% LF 9% (price difference
between Slab)
> 60% LF 12% (----------do----------) >60% 20% (price difference
between slab)
* In addition to above LF discount of 10 paise per unit for consumption beyond 70%
& LF 20 paise per unit for consumption beyond 80% LF.

Interest on Security Deposit

273. TPCODL submitted with regards to the interest on Security deposit of Rs. 46.66 Cr ,
TPCODL wish to submit that the as per audited balance sheet of erstwhile CESU as
on 31.03.2020, the opening value of security deposit for FY 2019-20 was Rs. 717.86
Cr. Interest rate of 6.5% has been considered for FY 2019-20 and accordingly the
amount of Rs 46.66 Cr has been arrived at.

Table – 23
Actual fund availability against Security Deposit as on 31.03.2020
Particulars Amount in Rs. Cr. Mode of Investment
In form of FD 311.54 Pledged with UBI for availing OD
In form of Flexi Deposit 33.86 Free funds
Total 345.40
As regards the Security deposit, the following are the Security Deposits invested in the
forms of FDs.

274. TPSODL/SOUTHCO Utility stated that the E.D collected from the consumers are
remitted to govt as per E.D act. Further the utility/Company submits the accounts of
E.D billed, collected & remitted to Electrical Inspector, Govt of Odisha regularly. The
matter was already clarified in our rejoinder to the petition in the last tariff order 2020-
21 which was raised during the hearing of tariff.

275. TPWODL/WESCO Utility stated that collection of ED and appropriation of same as

per OERC Code 2019. It is to state that the Commission’s regulation 2019, para 152

73
 specifically address the manner of Recovery of arrears. The Licensee is adhering the
same. Similarly, the Commission’s RST order (for FY 2020-21) vide para 491 directs,
a consumer is eligible for prompt payment rebate if paid within due date excluding all
arrears. Hence, when a consumer is only paying the current dues entire amount is
allocated against current ED, current EC etc. In case of payment more than the current
dues allocation/appropriation is being made on the basis of the Commission’s
Regulation, 2019.

276. TPCODL stated that it has been paying the Electricity Duty as per the rules and
regulations as provided under Regulation 152 of the Supply Code.

Applicability of MMFC and Fixed Charges in the Tariff Design

277. TPWODL/WESCO Utility submitted that the distribution cost towards Employees,
R&M & A&G are almost fixed in nature irrespective of increase or decrease in sales.
So, unless the same is recouped in appropriate manner the licensee will unable to
supply quality power. So, the licensee has proposed the Demand charges @ 85% of
CD or MD whichever is higher, which may kindly be considered.

Waiver of penalty for occasional consumption beyond CD

278. TPWODL/WESCO Utility submitted that as regards to Covid-19 relief, it is to

appraise that the Commission vide Letter No. DIR(T)-405/2020/452 dated 22-04-2020
has extended relief (during Apr-2020 & May-2020) for Demand Charges to the extent
of demand recorded instead of 80% of CD or demand recorded whichever is higher.
This was for the consumer with CD of 110 KVA & above.

Meter Rent

279. NESCO Utility and WESCO Utility submitted that the Commission is allowing
recovery of cost in 60 months’ period, which is justified.

280. TPWODL/WESCO Utility submitted that recovery of meter rent is being stopped on
account of saturation of 60 months period. Within coming few years there would be
hardly few lakh of consumers who would be paying meter rent. Now, with latest
technology of prepaid meter, smart meter the consumer would be more benefitted. The
concept of recovery of meter rent may not be a proposition and may be treated as
capital cost as it would be treated as an equipment for measuring electricity and to be
kept under Network asset.

74
281. TPCODL wish to submit that expenditure towards meter installation does not consist
cost of meters alone but also includes associated accessories, set up of back end IT
infrastructure, installation cost including site visit etc. Also the licensee makes all
expenditure upfront at the time of meter installation whereas meter rents are collected
over a period of 5 years. Hence appropriate present value factor must be considered
while comparing the meter installation cost with amount recovered through Meter
rents.

Metering

282. NESCO Utility submitted that the defective position of meter as shown in P-13 as on
end of Sep-20 is 1,90,601 and unmetered 1,13,065. Out of the above, 23,960 meters
already replaced/installed by December’2020 and incorporated in billing fold.
Installation of 1,95,585 nos. of meters are under progress.

283. TPWODL/WESCO Utility submitted that the Commission while reviewing the
performance of the licensee have given directive to replace the defective meters and to
install meter where consumer have no meter.

284. In case of Consumer meters, TPCODL stated that they have presented the detailed
reasoning for considering the metering expenditure as Capex to be included in the
ARR. TPCODL has also presented the reasoning under 4.9.1 of the ARR. The
Commission may decide appropriately. The Capex proposal for FY 2021-22 has been
submitted on the basis of existing regulations that treat Metering expenditures as
Capex. However, based on the directive of the Commission in this matter, the
treatment of capital expenditure towards financing of the meters (whether through
rentals or otherwise) and associated equipment will be done.

Emergency Power Supply to Captive Generating Plants (CGPs)

285. NESCO Utility stated the quantum of power is kept reserved for the industry both in
normal industrial supply as well as emergency supply. However, in case an emergency
supply industry will not draw power in a month it will not be charged any energy
charge or demand charge, even though the quantum of power are kept reserved for
them. The tariff fixed for emergency supply may take care of the demand charge
component, in case the unit draws above a thresh hold quantum of power. But in case
of no drawl or drawl below this quantum the charges, the marginal charges that are
billed are very insufficient to cover any charge. Therefore, provision of demand charge

75
 must be done for Emergency supply category, which the consumer must pay
irrespective of its drawl.

Power Factor Incentive

286. NESCO Utility pointed that the contention of the objector is not true. Consumption by
small consumers at low power factor will collectively have substantial impact on the
power system. The objector has stated that, the investment in improvement of PF also
helps in reduction of demand charges. Therefore, the categories as proposed, if
covered under PF penalty will help in reducing their demand charges and also in
improving system stability.

287. NESCO Utility has suggested the adoption of KVAh billing so that the question of
power factor penalty and incentive will not arise. The detail submission on KVAh
billing and power factor penalty in ARR application for FY 2021-22 may please be
referred.

288. NESCO Utility has prayed for withdrawal of power factor incentive in its application
with detail justification. For the investment made by the consumers for maintaining
improved power factor, they have already recovered the investment made in shape of
double benefit extended in tariff for years in shape of avoidance of PF penalty and PF
incentive. Its time to move towards system stability and make other consumers (three
phase consumers) conscious by adopting KVAh billing.

289. NESCO Utility submitted that the collection out of imposition of penalty under
Section 126 has been furnished in P-16.

290. TPSODL/SOUTHCO Utility stated that the assessment under Section 126 is
accounted separately.

291. TPWODL/WESCO Utility is continuously pursuing before the Commission for

introduction of KVAh billing. Upon introduction of KVAh billing Industries aspiring
to get higher incentive would be automatically benefitted and there would not be any
displeasure for non-increase of PF incentive. Industries will also plan to maintain
adequate PF to avoid PF penalty.

292. TPSODL/SOUTHCO Utility in reply to withdrawal of power factor incentive stated

that, now days all the machineries used by the industries are certified by BIS or ISO,
similarly pumps are designed are energy efficient and motors are copper banded. So

76
 use of such star rated energy efficient equipments along with capacitor banks are the
contributor for achievement of higher power factor. Now with the present scenario
continuance of PF incentive is no more required which may kindly be abolished.

ToD Benefit

293. TPSODL/SOUTHCO submitted that the present TOD benefit is appropriate so the
utility is adverse to the view of increasing TOD benefit to the consumer. The OYT
scheme is extended to the applicant as per their application. TOD benefit is given to
the eligible consumers.

294. NESCO Utility and TPWODL/WESCO Utility stated that there is no justification in
changing the TOD tariff from 20paisa to 50paisa. The load curve of most of the
industries is almost flat. In such scenario continuance of TOD benefit is no more
required. TPWODL/WESCO Utility further stated the proposal of 50 paise per unit
would affect the revenue of the licensee and for industries consuming power beyond
80% LF, in such cases revenue realization would be less than the power purchase cost
of the DISCOM. NESCO Utility submitted that the consumers having contract
demand more than 110KVA and above are also availing off peak hour benefit towards
drawal to the extent of 120% of their contract demand without levy of penalty. So,
further continuance of TOD benefit would be a double benefit for the same cause
which may kindly be abolished.

295. NESCO Utility submitted that the existing TOD benefits is being extended to all the
eligible 3 phase consumers as per the RST order. The TOD benefit allowed to HT &
EHT consumers are furnished hereunder:

Table – 24
TOD Benefit
Year HT (In Rs) EHT (In Rs) Total (In Rs)
FY 2018-19 21984659 79368998 101353657
FY 2019-20 22373982 86939557 109313539
FY 2020-21 (Upto Dec-20) 14245628 38141873 52387501

296. NESCO Utility submitted that the suggestion of the objector for reducing the tariff of
EHT/HT consumers by at least Rs.1/- during off-peak hours must be rejected. This
will just widen the revenue gap of the utility. Incorporation of TOD tariff in the BSP
needs to be examined before examining the proposal of the objector.

297. TPWODL/WESCO Utility pointed that suggestion regarding day off peak hours from

77
 12.00 noon to 17.00 hours may not be fruitful as during summer it will create more
pressure upon GRIDCO to harness power with higher cost.

298. TPSODL/SOUTHCO Utility submitted that the present TOD benefit is appropriate so
SOUTHCO Utility is adverse to the view of increasing TOD benefit to the consumer.

299. TPWODL/WESCO Utility and TPCODL stated that extension of OYT scheme to the
intending consumers is being extended as per prevailing RST Order. Unless
specifically mentioned by the objector, the petitioner may not be in a position to
resolve the concerned case.

Cross Subsidy

300. TPWODL/WESCO Utility submitted that the licensee has no opinion regarding
comments of the learned objector to the extent of providing subsidy by State
Government as like of other state u/s 65 of the Act.

301. TPWODL/WESCO Utility stated that the Commission is repeatedly explaining cross
subsidy in tariff and cross subsidy surcharge payable. In RST order for FY 20-21 vide
para 344 to 351 the details are explained. As per the mandate of Electricity Act 2003,
under section 42 the cross subsidy surcharge is to be reduced progressively. the
Commission has also evolved a mechanism (the Commission is also authorized to do
so) for recovery of cross subsidy surcharge accordingly they have allowed to the
extent of 63% of the computed value as against 65% in the previous year. Therefore,
submission of learned objector has been duly addressed.

302. TPWODL/WESCO Utility submitted that the calculation of cross subsidy surcharge
has been made as per Open Access Regulation 2020.

Table – 25
Total EHT Proposed Average Cost of Wheeling System Regulatory Surcharge
sales ARR for Tariff power Charges Loss % Asset (P/Kwh)
proposed EHT (P/Kwh) purchase (P/Kwh) ‘L’ (P/Kwh) (T-(C/(1-
for FY category ‘T’ (P/Kwh) ‘D’ ‘R’ L/100))+D+R)
2021-22 in Rs in ‘C’
MU Crore
1360 936.05 688.27 322.60 25.0017 0 0 341
Total EHT Proposed Average Cost of Wheeling System Regulatory Surcharge
sales ARR for Tariff power Charges Loss % Asset (P/Kwh)
proposed EHT (P/Kwh) purchase (P/Kwh) ‘L’ (P/Kwh) (T-(C/(1-
for FY category ‘T’ (P/Kwh) ‘D’ ‘R’ L/100))+D+R)
2021-22 in Rs in ‘C’
MU Crore
1800 1052.90 584.94 322.60 132 8 0 103

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 So, after correction in EHT there would not be any change but in case of HT CSS
would be 103 paise per unit instead of 101 paise per unit.
Similarly, if suggestion of the learned objector would be considered the position
would be as under.
As the Commission is not allowing EHT loss to DISCOM, we have not considered the
same for calculation. If EHT loss 3% would be considered, then loss or margin for
EHT will be 331 paise per unit and for HT 91 paise per unit.

Table – 26
Total EHT Proposed Average Cost of Wheeling System Regulatory Surcharge
sales ARR for Tariff power Charges Loss % Asset (P/Kwh)
proposed EHT (P/Kwh) purchase (P/Kwh) ‘L’ (P/Kwh) (T-(C/(1-
for FY category ’T’ (P/Kwh) ‘D’ ‘R’ L/100))+D+R)
2021-22 in Rs in ‘C’
MU Crore
1360 936.05 688.27 322.60 25.0017 3 0 331
Total EHT Proposed Average Cost of Wheeling System Regulatory Surcharge
sales ARR for Tariff power Charges Loss % Asset (P/Kwh)
proposed EHT (P/Kwh) purchase (P/Kwh) ‘L’ (P/Kwh) (T-(C/(1-
for FY category ’T’ (P/Kwh) ‘D’ ‘R’ L/100))+D+R)
2021-22 in Rs in ‘C’
MU Crore
1800 1052.90 584.94 322.60 132 11 0 91

CSS for peak & off peak hours:

The intention of different CSS for both peak and off peak is to maintain harmony with
regards to drawal from DISCOM during peak & off peak hour. As the consumer is
eligible for TOD tariff in off peak hours is trying to offset the open access drawal with
drawal from DISCOM and vice versa.

As regards to tariff of two types of CSS for peak & off peak the difference may be to
the tune of TOD benefit.

Additional Surcharge:

In line with National Tariff policy additional surcharge is leviable to recover the fixed
cost of generation power capacity stranded due to open access. Here, the DISCOM is
entirely sourcing it’s power from GRIDCO and GRIDCO is procuring from different
generator as per PPA. A consumer having contract demand with the DISCOM is
reserving it’s capacity to draw on it’s need. Based on the CD of the industry and
pattern of use, DISCOM is projecting it’s sale in the ARR. Considering the projected
sale OERC is fixing BSP for the DISCOM. So, when a consumer opting for open

79
 access, denying the DISCOM power & in turn drawal from GRIDCO reduces and
fixed cost incurred by GRIDCO for generator cannot be prevented.

Most of the neighboring states have also fixed Additional surcharge in similar manner.

303. SOUTHCO Utility stated that the Commission is determining the Cross Subsidy
Surcharge on the basis of average cost of supply to the all consumers of the State as
there is uniform RST. TPSODL stated that detail of cross subsidy in Odisha RST
structure is submitted in our ARR application 2021-22.

304. TPSODL submitted that the Commission may examine the average cost of supply
issues while delivering the RST order. Whole exercise may be looked in a holistic
view. The immediate cost may be allowed by the Commission to run the utility for
further improvement in coming years.

Special Tariff Measures

305. NESCO Utility, TPWODL/WESCO Utility and TPSODL/SOUTHCO Utility

submitted that tariff of Railway traction with neighboring states vs Odisha is appended
below.

States Demand Charges Energy Charges

1) Chhatisgarh Rs.350/-per KVA per month Rs. 4.20 per KVAh
2) Andhrapardesh Rs.350/-per KVA per month Rs. 5.50 per KVAh
3) Jharkhand Rs.350/-per KVA per month Rs. 5.25 per KVAh
4) Madhya Pradesh* Rs.310/-per KVA per month Rs. 5.90 per KWH
*Guaranteed minimum annual consumption of 1500 unit(in Kwh) per Kva of Contract
demand.
5) Maharastra Rs.411/-per KVA per month Rs. 6.76 per KWH
6) Bihar Rs.280/-per KVA per month Rs. 6.70 per KWH
7) Odisha Rs.250/-per KVA per month HT(Kwh) EHT(Kwh)
Upto 60% L.F. 5.55 5.50
>60% L.F. 4.45 4.40

So, request of Railway for reduction of railway tariff as compared to other HT & EHT
category will affect the revenue of the Utility.

306. TPWODL/WESCO Utility submitted that in case of reduction of higher Demand and
Energy Charges, Railway has made a forceful representation to reduce the demand

80
 cost as well as energy charges considering their nature of load. It is a fact that railway
is availing power supply in two phase and other industries in three phase. Industries
drawing in three phase obviously can use more efficiently. Railway, because of its
nature of load and consumption cannot run in higher load factor. Therefore, if railway
tariff would be isolated from other category it needs to be fixed in higher tariff instead
of lower because of non-efficient use.

Maximum Demand during feed extension from different DISCOM

307. TPWODL/WESCO utility stated that presently, feed extension benefit is being
extended to railway, if power fails in one TSS within the DISCOMs jurisdiction.
Request of railway for availing the same benefit (if it happens in two different
DISCOMs) cannot be accepted/permissible as the DISCOMs are different legal
entities. Even though OPTCL network is common for all the four DISCOMs, the
DISCOMs are paying different BSP, different SLDC charges having uniform RST
across the state. Previously, railway has also represented for the same and it was
denied with justification. The possible maximum benefit within the DISCOM has
already in force. So East Coast railway is already benefitted.

308. NESCO Utility and TPSODL/SOUTHCO Utility stated that as explained the railway
tariff here in Odisha is much cheaper as compared to other states. Hence the
suggestion regarding reduction of slab rate may not be accepted. Further, in Odisha all
the distribution companies are operating in different geographical area with different
consumer strength & different socio economic conditions of the people, as well as
with different BST rates. Suggestion of railway to consider the railway load at OPTCL
grid end with simultaneous metering is not justified.

309. NESCO Utility and TPSODL/SOUTHCO Utility stated that in case of ignoring of MD
during feed extension from different DISCOM the submission of the railway in this
regard is not acceptable. The benefit of feed extension is being extended within the
same DISCOM as per the terms of mutual agreement. But the same benefit cannot be
extended across the DISCOM. Each DISCOM have different BSP even though single
RST is in force across the state. Each DISCOM ARR also being individually
approved. If railway would try to avail such benefit then each DISCOM’s revenue
would be affected. Hence proposal of railway in this regard may not be considered.

310. TPCODL stated in case of railways that they have not proposed any change in tariff

81
 and hence the present tariff would be applicable. The tariff has been determined by the
Commission in the previous Tariff Order and no change has been proposed by
TPCODL. The Tariff to individual category of consumers is decided by the OERC
based on the cross subsidy in the tariff to that particular category of consumer.

311. TPSODL/SOUTHCO Utility stated that Allied Agro-industrial Activities category

relates to supply of power to Cold Storages (i.e. a temperature controlled storage
where flowers, fruits, vegetables, meat and fish can be kept fresh or frozen until it is
needed) and includes chilling plant for milk and only the cold storages attached to
processing units for meat, fish, prawns, flowers, fruits and vegetables.

312. So the objectors submission to group the cold storage under allied agricultural activity
does not hold good. However, looking to the key role played by cold storages in
preserving the foods which will beneficial for the economy, the Commission may
examine the submission of the petitioner and pass appropriate orders. It is submitted
that the petitioner is billed as per regulation and tariff orders of the OERC.

Amnesty Arrear Clearance Scheme

313. TPWODL/WESCO Utility stated that the learned objector has denied for introduction
of amnesty arrear scheme as proposed by the licensee anticipating good amount of
commission to TATA power. In this context it is to submit that the commission for
arrear realization is 10% in case of live consumer & 20% for disconnected consumers.
It has already proved that arrear collection is not an easy task and without incurring
cost it is not at all possible. If the same would have easy task the present level of arrear
amounting Rs.3000 crore may not have arisen. Therefore, for benefit of
GRIDCO/Government it would be prudent to extend/approve a suitable amnesty arrear
clearance scheme.

Tariff for Industrial Consumers

314. NESCO Utility stated the Commission has allowed in the tariff order for 2020-21
under para 472

“All the industrial consumers having CD of 1 MW and above and drawing power in
33KV shall be allowed a rebate of 10 paise per unit for the units consumed in excess
of 70% of load factor and up to 80% of load factor and 20 paise per unit for the units
consumed in excess of 80% of the load factor per month. This shall be in addition to
all other rebate the consumer is otherwise eligible. All the industrial consumers
drawing power in EHT shall be eligible for a rebate of 10 paise per unit for all the
units consumed in excess of 80% of load factor.”

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 The revenue of the utility has been affected very much due to this COVID-19
pandemic, and any increase in the rebate will make the situation worse.

315. NESCO Utility and TPWODL/WESCO Utility submitted that the learned objector has
submitted a list or 41 industries and claimed that they have closed their unit because of
higher tariff. At the outset it is to state that most of the industries are running with
different name & with different load. Some have disconnected since long (may be
more than 10 years). Few industries have court cases. Other have terminated their
agreement & taken back their security deposit. It is a fact that during lock down
industries position was severely affected for which the Commission had allowed two
months’ relief for deferment of Demand Charges. During Apr-2020 & May-2020
demand charges was levied to the extent of Demand recorded instead of 80% of CD or
MD whichever is higher. Now, from Jun-2020 onwards industrial consumption
particularly in HT segment is in normal trend.

Tariff for Industrial Consumers:

316. The Industrial tariff of Odisha vs Other neighbouring states for FY 2020-21 is
appended below.

Table - 27
Demand charges (per KVA per month)
Odisha Jharkhand Chhattisgarh Andhra Pradesh
Rs. 250 Rs. 350 Rs.350 Rs. 475

Table - 28
Energy Charges
Odisha (per KWH) Jharkhand Chhattisgarh (per Andhra Pradesh
(per kvah) kvah) (per kwh)
Upto 60% HT EHT HT
> 60% 5.55 5.50 JBVNL Rs. 5.50 Rs. 5.91 to Rs. Rs. 5.40 to Rs. 6.30
6.91(for OthInd) in (different voltage
supply)
4.45 4.40 TSL Rs. 5.85 Rs. 5.30 to Rs.
6.75(for steel Ind)
DVC Rs. 3.75 (in different LF &
voltage supply)

Similarly, the industrial tariff of Madhya Pradesh is as below:

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 Table - 29
Supply Voltage Demand Charges Energy Charges for Energy Charges for
In Kva (p.m.) Consumption upto Consumption beyond
50% LF Rs PU 50% LF Rs PU
11 Kv Supply 347 7.10 6.10
33 Kv Supply 660 6.62 5.65
132 Kv Supply 660 6.62 5.65
220/400 Kv Supply 660 6.20 5.20
Other Special Condition

Guaranteed minimum annual consumption of 1200 unit (in Kwh) per KVA of Contract
demand.

In case of Odisha, HT Industries are eligible for load factor incentive of 10 paise per
unit for consumption beyond 70% LF & 20 paise per unit for consumption more than
80% LF.

As regards to surplus power of GRIDCO, if GRIDCO can sale the surplus quantum
with negotiated price to DISCOMs, in turn DISCOM can trade the same with the
industries in appropriate terms and conditions mutually agreed between GRIDCO,
TPWODL & consenting industries.

General Issues related to Retail Supply Tariff of DISCOMs

Energy Sales Forecast and Addition of BPL & LT Consumers
317. NESCO utility stated it is engaged in distribution of electricity in five districts
Balasore, Bhadrak, Mayurbhanj, Jajpur and Keonjhar. The performance of the utility
has been very much affected due to this pandemic situation of COVID -19 and lock
downs and slowdowns of industrial consumers. The projection for FY21-22 has been
prepared keeping in view the current years’ parameters. Position of the EHT
consumers have been detailed in the application of the Utility

318. NESCO Utility and TPWODL/WESCO Utility stated that the justification regarding
sales forecast has already been elaborated under para 2.2 of ARR application
alongwith the actual category wise sales figures of the previous years. From the past
trend, it can be seen that the projection submitted by the licensee is justified.

319. TPWODL/WESCO utility stated that HT & EHT sales projection always depends
upon the nature of drawal of the industries, market position, economic scenario,
Government policies, IEX price under open access, etc. In addition to above most of
the EHT industries are having their own CGP. The licensee cannot predict correctly

84
 the quantum of consumption for such industries. Now a days open access transaction
has been increased manifold. Availability of Renewable energy is also playing major
role. Therefore, projection of HT & EHT sale vis-à-vis actual will always change.

320. As regards to LT sales, the projection is made considering the consumer under
SAUBHAGYA Scheme. Agricultural sector has been given more importance by
Government of India as well as state Government, so sales under irrigation and
agriculture sector would obviously increase.

321. TPSODL/SOUTHCO Utility stated that the LT and HT loss projected as per actual for
FY 2019-20 and the future projections are as per different schemes and projections.
The projected sales forecast is prepared as per future growth of consumer.

322. TPSODL/SOUTHCO Utility in reply submitted that M/S Saraf industry having
Contract demand 15000KVA is closed due to COVID-19 & and other EHT&HT
industries have reduced their intake or availing power from open access or own power.

323. TPSODL submitted that the DSM activity is implemented by BEE in association
FICCI in TPSODL area with logistical support from TPSODL. Till now training in all
circles completed and sample DSM study is going on at consumer level.

324. TPCODL is committed in its obligation towards Energy conservation and DSM, in its
supply area. The detailed action plan which TPCODL has outlined and its current
status of implementation is as below:

a. For estimation of the baseline data, consumer survey and load research is being
conducted on sample population, selected from different consumer categories
and with the completion of the survey by February 2021 estimated baseline
data will be frozen.
b. TPCODL has signed a MoU with EESL, A JV of PSUs under Ministry of
Power on 14/01/2021, with a vision to encourage consumers to purchase
energy efficient appliances like Energy efficient A.Cs, fans etc. Energy
efficient appliances will now be made available to consumers for purchasing
online, through TPCODL website.
c. TPCODL is developing online platform for Grid Connected Roof Top PV
Solar installation program for residential consumers to meet the domestic
demands during day peak loads.
d. Training programs and workshops are being arranged in association with

85
 FICCI (Federation of Indian Chambers of Commerce & Industry) for
sensitizing officials about DSM, its impact and benefits. Two such training
programs are scheduled to be conducted in Feb, 2021.

Review of Inefficient Operations and Quality of Power Supply

325. TPSODL committed to provide quality power supply and better consumer services to
its consumers. TPSODL has taken many steps for improving the voltage by way of
augmentation of conductors, Installation of new S/S, up gradation of existing S/S and
Power Transformers. TPSODL has installed good no’s of new transformer and up
gradation of transformer of different capacity in its area of operation has been
undertaken. TPSODL has added additional transformers into the system to cater the
needs of the consumers and to overcome the low voltage. Under various schemes of
GoO like ODSSP, the asset addition is being undertaken to improve the voltage level
in addition to the addition of new GRIDs at OPTCL level. The voltage problem is not
an issue in TPSODL area. The power cut is being implemented in TPSODL with
notice for regular maintenance work or for load restriction by GRIDCO. Further, as
per the drawl schedule of SLDC and grid constraints the power restriction is being
imposed at SLDC/OPTCL level. The detail of additional works under taken and going
to be undertaken under various schemes is submitted in Para3.1 to 3.8.2, 4.1.3 of our
ARR & RST application. Further as per vesting order TPSODL is going to invest in
capex plan as per commitment to improve consumer services.

326. The O& M activities in the TPSODL’s area is carried out and the voltage level has
improved a lot and there is no more low voltage problem in TPSODL’s area.

Regarding compliance to directives and provisions under the Act.

327. Any scheme that is as per regulations and approved by the Commission will be
adhered to by TPCODL.

328. Any consumer who approaches TPCODL for power supply under remunerative
schemes, as per the provision of the Supply Code, 2019 will be provided with the
remunerative calculation and depending upon the outcome of the calculation required
action will be taken.

329. TPCODL stated in regard to supervision charges that, TPCODL would like to produce
below extracts from Supply Code, 2019.

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 “4. Calculation of capital cost

When a consumer is asked to bear the capital work, the estimated cost shall be
calculated as per the following calculation. The licensee is entitled to collect
the requisite supervision charge for checking and ensuring that the capital
works have been done as per the standards and in addition, the inspection fees
for inspection pertaining to safety and security as notified by the Govt. of
Odisha from time to time. The licensee should ensure inspection of works by
the Electrical Inspector.”

Hence the Supervision charges are collected on the basis of the regulations. Further it
should be understood that word supervision should not be construed as physical
presence of the utility at the time of execution but overall control. The control from the
Distribution Utility is exercised through preparation/approval of design, site visit and
final inspection. This is to ensure that that the work has been completed by adhering to
the safety, quality and statutory requirement of applicable standards.

330. TPCODL submitted that Power supply to all consumers will be provided as per the
relevant provisions of Supply Code 2019 and other applicable regulations as laid down
by the Commission. However, as a part of ease of doing business proposal TPCODL
has submitted that for the purpose of maintaining quality and avoiding substandard
equipment being installed by consumer due to his/her lack of experience and
knowledge, all supply and installation are to be executed by the licensee only.

Open Access Consumers data for FY 2019-20 is provided in table below.

Table - 30
Open Access consumption for FY 2019-20
Sl. Name of the Industry Contract Total Consumption during FY
No. Demand in 2019-20 (Grid + Open Access) in
KVA MU
GRID OA TOTAL
1. M/s. Dalmia Cement (Bharat) 10000 28.02 25.79 53.81
Limited
2. M/S T.S. Alloys Ltd. 12000 30.30 157.85 188.15
3. M/S Aarti Steels Ltd 11110 0.64 0.09 0.73
4. M/S Pradeep Phosphates Ltd. 14000 37.80 4.0 41.80
5. M/S Jindal Steel & Power Ltd. 20000 1.39 1.39
Safety of Animal & Human life and Vigilance Activities

331. NESCO Utility submitted that vigilance activities have been strengthened with
deployment of 73nos of vigilance squads. Vigilance activities are being reinforced in
high loss prone area considering Section / Feeder wise analysis of Input Vs Billing.

87
 Each circle has a Manager Vigilance and one at corporate office to monitor vigilance
activities under the supervision of Chief Vigilance Officer at Corporate Office. Four
nos. AVO (retired Police Officers) have been appointed to boost the vigilance
activities under supervision of Chief Vigilance Officer.

332. TPWODL/WESCO Utility submitted that presently there are 17 vigilance squad
operating through Agencies. The moto of vigilance activity is always not to penalise
the consumer and collect revenue. The main idea of keeping vigilance team is to
prevention of theft of energy. While doing so, if a consumer found to be guilty, needs
to be punished. Therefore, the cost towards vigilance team around Rs 17 lakh per
month not necessary to be recovered through penalty from consumers.

It is assured that wherever penalty raised are collected and in case of non-realisation
power supply is disconnected.

333. TPWODL/WESCO Utility submitted that the details of Fatal & Non-fatal accidents
occurred during previous year, current year six month has been depicted below.

During Current Six Months

Human Animal
Fatal 07 03
Non-fatal 01 00

334. TPSODL has appointed dedicated safety officer at Headquarter who is looking into the
aspect of safety. Further there are one training institute at Ambagada, Berhampur who
is imparting in house safety training to our employees.

335. TPCODL has changed its 11KV overhead line construction design philosophy for all
upcoming and ongoing projects. TPCODL has reviewed and revised the design of
Civil foundation, introduced high tensile WPB pole & revised the span length to 30
meters which will provide mechanical strength and thus making the network robust to
withstand wind speed of approx. 215 Km / Hr which is much higher than wind speed
defined under Zone 6 (as per IS 875). TPCODL is conducting a Study on the impact of
the Cyclone on Power distribution network and shall come up with the network design
which can withstand the wind speed of 250+ Km/hr near to the coast line. Study is
expected to be completed by Dec’21 and based on the study, network would be
designed for coastal area.

336. In response to overall queries of the Objector, TPCODL has submitted that it has

88
 given the highest priority to Safety of personnel. After commencing operations on 1st
June 2020, on analysis of last two year’s accident data and discussion with operation
and Safety teams, a major problem found among the employee was absence of PPE
and non-use of PPE and safety tools. Another major problem is the awareness among
the employee about the regulation that their employer should provide them the PPE
and train them on how to use those PPE.

Corrective action proposed was to procure the Personal Protective Equipment and
provide them training on use and maintenance of PPEs. Safety glasses and safety
gloves are probably one of the most common (and effective!) forms of PPE while
working at ground.

A budget of about Rs 9.5 Crores has been earmarked for this expenditure to be
incurred in FY 2020-21.

337. TPWODL submitted that the concerned regarding assessment u/s 126 in line with
Hon’ble Supreme Court’s decision, it is to state that the Commission has already
enumerated detailed guideline in the OERC (Condition of Supply) Code 2019 notified
on 27th August 2019. The relevant para 159 to 170 of chapter-XI of the Regulation
has already in place for Assessment for unauthorized use and theft of Electricity.
TPWODL is duty bound to adhere the same.

338. TPCODL since its inception is continuously working on the two fronts i.e. (a)
ensuring safe work environment to team working at the field, animals and public at
large and (b) ensuring reliable power supply to the consumers. In this endeavour, lot of
de-vegetation drives have been taken which has removed creepers from the Structure
and shrubs from the substation. Apart from de-vegetation, TPCODL has also started
the preventive maintenance of 33/11KV Substations, 33KV Lines, 11KV Distribution
Substation and lines etc for upkeep of the equipment.

OBSERVATION, ANALYSIS AND RECOMMENDATIONS OF CONSUMER

COUNSEL “WISE” ON ARR, WHEELING AND RETAIL SUPPLY APPLICATION
OF DISCOMS (PARA 339 TO 355)
339. The licensees have over projected the LT demand and the demand of BPL categories
which is not as per the norms of consumption allowed for this category. There should
be zero unmetered and defective meter supply, in case of defective meter it should be
replaced immediately. The overconsumption due to unmetered / unbilled consumption
or defective meters cannot be permitted and requested for review.

89
340. LT particularly BPL category customers and consumption should be projected
carefully. The BPL domestic category should be restricted for consumption up to 30
units per month and the same should be converted to APL after crossing 30 units
consumption on annual basis. Projection of BPL consumers in TPCODL seems to be
incorrect as the increase in BPL projected is unrealistic to the historical trend.

341. Increase in LT sales require more cross subsidy from HT & EHT consumers or this
needs to be recovered from the Government through tariff subsidy. Monthly per capita
consumption for LT is going up and for HT and EHT coming down. Power intensive
industries in HT and EHT has consumption declining in DISCOMs. SOUTHCO is the
most affected as their HT & EHT consumer base is very less compared to other
DISCOMs of Odisha. TPCODL has HT consumers increasing and its connected
demand increasing but the consumption is declining in many cases.

342. It is observed form the past data that all the DISCOMs have consistently failed to
realize LT revenue per input fixed by the Commission. LT distribution loss calculated
at 8% HT loss is still considerably high.

343. It is observed that EHT consumption is coming down significantly in many cases.HT
consumers are increasing however the consumption is declining. Units/kW is
decreasing in HT consumers.

344. It is observed that in most of the cases distribution loss has come down notably in FY
2019-20 however collection efficiency also reduced which failed to reduce AT&C loss
in overall. The collection efficiency challenges the involvement of franchise operation
and cost involved in it. Franchisee expenses should be tallied with the benefits
received.

345. AT&C and Distribution loss have been reducing over the period of time however in
most of the cases it has not matched the target yet which has been set consistently over
the years. Even though the reduction in losses is welcome in terms of efforts much
more is needed to reduce the losses and the target losses further. Losses have sharply
increased in TPCODL Sep 2020 (6 months) compared to last year. These losses should
be examined as the area is mostly urbanized. Cuttack has highest 67.40% AT&C loss.

346. It is observed that there is increase in employee expenses despite no. of employees are
declining and also outsourcing many activities. 7th pay commission arrear may be
reviewed based upon government notification. Terminal benefit should be on the basis

90
 of the submission of the actual liability paid. The effect can be realized during true-up
exercise.

347. Impact of A&G expenses should be assessed, especially of energy auditing IT

automation expense is welcomed, though schedule for implementation should be
strictly followed, and details should be in public domain Energy Audit and other
additional expenses not segregated by Utility. Normal A&G expenses should be
approved with 7% escalation. Additional A&G expenses should be considered
viewing its long term impact on performance.

348. The Commission may review capital expenditure against cost benefit analysis on the
basis of consumer benefit and operational efficiency.

349. Gap between actual and approved R&M expenses. Distribution line maintenance has
increase many folds. In every year’s ARR submission a very common practice by
DISCOMs is the cost for last six months of current FY shoots up exorbitantly. Actual
spending very less than proposed and approved R&M costs this may be increasing
operational cost as repairs and maintenance is not done as proposed and required

350. Debtors outstanding must be recovered, in most of the cases the over 24months
outstanding forms a significant amount which could have been balanced against
revenue requirement if the outstanding is recovered.

351. Distribution line maintenance has increase many folds in 21-22 over 19-20. Line
maintenance expenses should tally with performance improvement. In every year’s
ARR submission a very common practice by DISCOM is the cost for last six months
of current FY shoots up exorbitantly. In spite of underutilization of allocated funds,
DISCOMs are requesting larger allocation for R&M. Actual spending very less than
proposed and approved R&M costs this may be increasing operational cost as repairs
and maintenance is not done as proposed and required.

352. In the case of bad and doubtful debts many licensees have increased requirement for
making provision for bad and doubtful debt. Further, despite appointing various
collection franchisees, outsourcing of the billing and collection activities and
imposition of DPS to domestic category consumers the billing and collection
efficiency of the licensees have not shown any sign of improvement. The licensees
have also failed to recover the arrears which are pending for more than a year. It has
been observed that more than 50% bad debts across all the licensees are more than 24

91
 months old. This shows that the licensees are not putting enough effort to recover the
old bad debts. The arrears older than 2 years are piling up and DISCOMs need to
recover the same to meet their working capital requirements. Further, the proposal of
the licensee to introduce the amnesty arrear clearance scheme for LT non industrial
category of consumer to recover such old debts if introduced could help to improve the
recovery of such bad debts. Also, the Licensees, seem to project the provision for bad
debt considering 4% collection inefficiency. It is suggested that this should be
computed @1% of the total annual revenue billing in HT and LT sales only.

353. It is observed that all the DTRs and feeders are not yet metered. Hence, a 100% energy
audit from DISCOMs point of view means audit of only metered DTRs and feeders.
Large number of 33kV and 11kV feeders not metered, not audited and metered but not
audited. This is inefficient practice as it does not reflect the true picture of energy
efficiency of the utilities. NESCO has effective auditing of DTR about 1% only.
SOUTHCO has 0 DTR under audit. Despite utmost thrust imparted by the Utilities,
the Energy Audit has failed to bring any conclusive results. Energy audit is like
diagnosis and needs to be backed by concrete action plan to reduce losses. Very less
chances of survival, if such scenario continues.

354. All DISCOMs should target and commit to the collection efficiency to reach 99%
which set by the Commission and has been quite distant for DISCOMs.

355. TPCODL had not submitted tariff rationalization measures at the time of application.
From consumer point of view incentives and rebates need to continue. We welcome on
system improvements and rewards in payments to DISCOMs by consumers and
payments by DISCOMs to GRIDCO passing benefit to consumers.

OBJECTIONS ON PROPOSALS OF THE UTILITIES ON OPEN ACCESS

CHARGES (PARA 356 TO 363)

356. The objectors submit that the open access charges particularly cross subsidy surcharge
of DISCOMs in Odisha is high as compared to the other states, due to which, the very
purpose of open access is defeated. The Commission should promote the development
of the power trading market as per Section 66 of the Electricity Act, 2003 by fixing
open access charges including cross subsidy surcharges at reasonable levels in order to
encourage competition in the power market.

357. It is submitted that the CSS ought to be gradually reduced every year. This is laid

92
 down in Section 42 of the Electricity Act, 2003 (Act) that a road map is to be made by
the Commission for reduction of the subsidies and the corresponding reduction in the
amount of subsidies is to be reflected and implemented for the purposes of reduction
of the CSS. Further, Section 42(2) of Electricity Act, 2003 provides that, there should
have been constant endeavour on the part of the Commission to reduce the cross-
subsidy surcharge on yearly basis.

358. The open access charges particularly the Cross-Subsidy Surcharge (CSS) becoming
unviable for EHT consumer to avail power supply from other sources through open
access.

359. The objector would like to submit that no precise and clear formula has been approved
by the Commission for determination of Cross Subsidy and CSS. However, in no case
the CSS can ever be more than cross subsidy. CSS which is collected to compensate
the distribution licensee for financial loss incurred by them due to loss of cross
subsidy. It is submitted that the levy of CSS is to compensate the Distribution
Company for the loss of a customer and was never intended to be a source of revenue
for it.

360. There should not be any additional surcharge when the open access consumer is
availing power supply through dedicated transmission line constructed at its own cost.
There should not be any cross subsidy surcharge payable by the consumer procuring
renewable and cogeneration based energy from other sources in order to promote
renewable and cogeneration based energy as per the Section 86(1)(e) of the Electricity
Act, 2003.

361. DISCOM has proposed to allow Open Access within limited transmission/distribution
capacity so as to keep adequate reserve for the new consumer, which is wrong and
violation the principle of Open Access. The criteria for allotment/reservation of
transmission and distribution capacity have to be governed by the approved procedure
under OERC (Terms & Conditions for Open Access) Regulation 2005. Therefore, if
adequate transmission/distribution corridor is available then the prospective Open
Access customer should be allowed to procure power beyond its contracted capacity
for the existing consumer till no new consumer starts drawing power from the network
otherwise it will lead to poor utilisation of Network.

362. Further, if the DISCOM is unable to supply power due to power regulation or shortage

93
 of power, then in that case the industries should be allowed to source power from third
part through open access without payment of cross subsidy surcharge.

363. The Cross Subsidy Surcharge in majority of the states in India is very low as
compared to the State of Odisha. Because of low Cross Subsidy Surcharge, the
industrial units in the other state are able to procure low cost power from IEX and
third party and achieve their operational variability. Whereas majority of Odisha based
industries are not in a position to procure these low cost power from IEX/third party
due to very high open access charges.

OBSERVATION OF STATE ADVISORY COMMITTEE (SAC) (PARA 364)

364. The Commission had convened SAC Meeting on 22.02.2021 and among other things
the SAC opined the following regarding tariff proposal:

 A need for Revisiting GRIDCO’ Role (Except 5 States, other States in India do
not have a similar organization. It is no doubt coming to the rescue of some of
the non-payment DISCOMS, but in the long run it may be a non-sustainable
business model.) The cost to serve should be reflected in the tariff. The
assumption of 8% loss in HT should be revisited. Surplus available power to
the tune of 9000 MU can be utilised for HT and EHT consumers. Special
attention is needed for Arrear Collection, employment to women Self Help
Groups, GRF infrastructure improvement, Bills in Odia language. The CAPEX
implementation should be properly monitored by OERC. The State
Government subsidy is needed for low end consumers. It is right time to
monitor DISCOMs performance wrt PQ indices, number of accidents, arrear
collection, customer satisfaction and their employee cost. Koraput area is
suffering from power cuts even during slight rain or wind. Rural areas are
experiencing long unscheduled outages.

 Since tariff had been increased in Sept, 2020, it should not be hiked again,
rather efficiency of utilities should be improved. Instead of tariff revision,
arrears should be collected particularly from commercial, HT & EHT
consumers. There should be reduction in AT&C loss. WSHGs should be
deployed for bill collection. Employees of utilities should wear uniforms for
identification. Also as per OERC orders, bills should be in Odia language.
There should be a provision of penalty in case of poor performance by TPCL.

94
 NESCO Utility should take proper action for payment of arrear wages to the
outsourced employees. Performance Regulations should be enforced. There is
no need for further capital investment for infrastructure growth as lot of Sub-
stations/lines were created under different schemes and after physical checking
any further capital investment on network may be allowed on real term basis.
All such investments can be allowed on project wise with detail analysis along
with support of drawings of existing and proposed network. The present
service connection cost of Rs.1500/- per consumer and present rent on single
phase meter at Rs.40/ per month, respectively, is high and needs to be
reviewed. Every Power supply permission should comply with Regulation 22
of the Code and shall be followed with feasibility report/Estimate/
Remunerative calculation.

 The high tariff will have negative impact on the industries and the Commission
should devise a cost based tariff system. Demand Side Management should be
implemented for efficiency in energy use. There is a need for strengthening
GRF and Ombudsman by appointing members from outside rather than serving
officers of utilities. The impact of reform in power distribution system is not
being felt by the consumers today because there is little scope for participation
and also due to gradual elimination of consumer friendly practices and
guidelines. All the decisions and directions given by the Commission in the
SAC for implementation to benefit consumers are being ignored by DISCOMs.
The supplier/seller should install his own measuring device to sell the product
and the buyer should have no responsibility for this except to check its
correctness. As such the power distribution utilities charging the consumer for
the cost of the meter as well as interest, is unjustified. This should be included
in the cost like other equipment of the licensee for which reasonable minimum
return may be considered and the licensee must not be allowed to charge for
supply of meter. Licensees should be very transparent in the purchase of
materials as higher cost ultimately means higher claim for tariff. The
procurement from outside the state will affect the state revenue and local
industries trade and employment adversely.

 The Case No. 43 of 2017 in APTEL has to be considered while finalising the
ARR. A gap of Rs.258 cr in tariff which could not be realised because of Covid

95
 situation last year would have to be passed on this year. The power purchase
price of OHPC and NTPC is going up and the effect of this on BSP will be 9 -
10 paise/unit and this will put a pressure on tariff. Equity to DISCOMs will
also entail some commitment by GRIDCO. AT & C loss is gradually reducing
so Tata Power is in a good position and they have time to improve.

VIEWS OF GOVERNMENT OF ODISHA ON TARIFF ISSUES (PARA 365)

365. The State Government in response to query of the Commission has intimated as
follows in their letter No. 3333, dated 24.03.2021.

(a) Keeping in abeyance of up-valuation of assets

Regarding the issue of up-valuation of assets pertaining to OPTC'L, Generators

and other licensees, the Government for the time being agree with the views of
the Commission to keep in abeyance the up-valuation of assets like previous
years. Considering the present difficult situation, the Govt. agrees to extend the
status-quo on up-valuation for 5 years from FY 2021-22 to 2025-26.

(b) Provision of subsidy under Section 65 of the Electricity Act, 2003

In view of the increasing power demand, massive investments have been made
by the State Government for up gradation of transmission and distribution
systems which is primarily in the nature of capital subsidy to keep the tariff
low for all categories of consumers. The Government, therefore, do not agree
to provide any subsidy for any class of consumers under Section 65 of the
Electricity Act, 2003.

(c) Return on non-cash equity infusion of Rs.647 Cr. in OPTCL

Government vide its notification No. 11080 dt. 31st December 2020 have
converted the Bonds of Rs. 400 Crore and interest outstanding of about Rs.247
Crore to equity share capital investment of Government in OPTCL. However,
in order to bring down its effect on the tariff, OERC may not allow any return
on this equity for the time being. However, OPTCL may not be allowed to
incur losses and requisite provision may be made for proper upkeep of the
transmission assets.

OBSERVATION AND DIRECTION OF THE COMMISSION (PARA 366 TO 532)

366. All the DISCOM Utilities of Odisha have filed their Aggregate Revenue Requirement

96
 (ARR), Wheeling and Retail Supply Tariff (RST) applications for the financial year
2021-22 in pursuance to Regulation 6 (1) of (Terms and Conditions for Determination
of Wheeling Tariff and Retail Supply Tariff) Regulations, 2014 within 30th
November, 2020. The DISCOM Utilities have proposed segregation methodology for
segregating their cost and revenue into wheeling business and retail supply business
for approval of the Commission under Regulation 4.4 of said Regulations. Similar to
previous year the Commission has approved the cost allocation matrix provisionally
for FY 2021-22 consistent with the Regulations (paras 385 to 393 of RST order 2016-
17).

367. In the meantime the Utilities of CESU, WESCO and SOUTHCO have been
transferred to newly created DISCOMs i.e. TPCODL, TPWODL and TPSODL
respectively under Section 20 and 21 of the Electricity Act, 2003. TPCL and GRIDCO
hold 51% and 49% of equity respectively in these newly created said DISCOMs. The
Utility of NESCO shall be transferred to a new company shortly in which TPCL and
GRIDCO will have similar equity holding pattern. The Commission has transferred
the utilities such as CESU, WESCO and SOUTHCO vide their Vesting Order Nos.
11/2020, 82/2020 and 83/2020 respectively. The different tariff determination
parameters shall be adopted from the respective vesting orders of the utilities and
OERC (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply
Tariff) Regulations, 2014.

368. The tariff design exercise carried out by the Commission is a balancing act in which
revenue is matched with expenditure in such a way that voltage-wise tariff remains
within ±20% of the average cost of supply as per Clause 8.3 of National Tariff Policy.
In the present State of Odisha power sector, EHT and HT consumers are cross
subsidizing consumers, whereas the LT consumers are the subsidized consumers.
Similar to the previous years, the Commission has adopted Top Down Approach to
calculate sales of ensuing year by applying normative loss specified in the vesting
order.

97
 Table – 31
Proposed and Approved Loss of DISCOM Utilities
FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22
(Actual) Approved Estimated by Proposed by (Approved)
licensees licensees by the
Commission
TPCODL
Distribution Loss 23.12% 23.00% 26.92% 24.63% 22.93%
Collection Efficiency 90.51% 99.00% 96.00% 97.00% 99.00%
AT and C Loss 30.42% 23.77% 29.84% 26.89% 23.70%
NESCO Utility
Distribution Loss 13.19% 18.35% 19.60% 19.05% 18.35%
Collection Efficiency 86.38% 99.00% 92.00% 93.00% 99.00%
AT and C Loss 25.01% 19.17% 26.04% 24.72% 19.17%
TPWODL
Distribution Loss 18.73% 19.60% 22.34% 21.27% 19.60%
Collection Efficiency 87.91% 99.00% 95.00% 96.00% 99.00%
AT and C Loss 28.56% 20.40% 26.22% 24.42% 20.40%
TPSODL
Distribution Loss 24.47% 25.00% 25.00% 24.50% 25.00%
Collection Efficiency 84.34% 99.00% 91.00% 96.00% 99.00%
AT and C Loss 36.30% 25.75% 31.75% 27.52% 25.75%
ODISHA
Distribution Loss 19.78% 21.23% 23.76% 22.42% 21.24%
Collection Efficiency 87.94% 99.00% 94.11% 95.67% 99.00%
AT &C Loss 29.45% 22.02% 28.25% 25.78% 22.03%

Assessment of Power Purchase Requirement of DISCOM Utilities for FY 2021-22

369. Since last year FY 2020-21 there was complete lockdown in State since 22.03.2020
onward due Corona virus pandemic, energy consumption patterns of all consumer
categories were affected. The Commission has estimated sales for EHT and HT for FY
2020-21 by averaging sales of last six months and extrapolating the same for the
whole year. The estimated sale for FY 2020-21 in HT and EHT are as follows:

Table - 32
(in MU)
Licensee EHT Sale for FY 2020-21 HT Sale for FY 2020-21
TPCODL 976.93 1129.50
NESCO Utility 1450.26 388.93
TPWODL 1485.88 1903.98
TPSODL 457.85 200.35
370. The Commission scrutinized the estimated sale of the licensee for FY 2020-21 and
proposal for FY 2021-22 in HT and EHT level. The additional sale in EHT was found
that to be 20.85 MU, 246.22 MU, 60.00 MU and 23.30 MU in TPCODL, NESCO
Utility, TPWODL and TPSODL respectively. Similarly the additional sales in HT are

98
 26.67 MU, 50.00 MU in NESCO Utility and TPWODL respectively. Considering the
above additional sales, the estimated sales for FY 2021-22 of the DISCOMs are
calculated by adding the same with estimated sale found out by the Commission for
FY 2020-21 for HT and EHT. The Commission allowed power purchase for the above
additional sales over the power purchase estimated for FY 2021-22 by the Licensees
considering 8% loss in HT and no loss in EHT. Basing on the power purchase figure
so arrived for FY 2021-22 and considering overall distribution loss and sales in EHT
and HT level, the Commission determines estimated sales at LT level following top
down approach specified in the Regulation. Accordingly, the estimated power
purchase and sales figure of DISCOMs are given in the table below for FY 2021-22:

Table – 33
(In MU)
All Odisha Purchase and Sales Proposed and Approved by the Commission for FY 2021-22
TPCODL NESCO TPWODL TPSODL ODISHA
Proposed Approved Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Purchase 9194.80 9290.00 5737.12 5880.00 8250.00 8600.00 4030.00 4100.00 27211.93 27870.00
Sales
EHT 905.23 997.78 1571.51 1696.49 1360.00 1545.88 414.40 481.15 4251.14 4721.30
HT 1340.21 1340.21 395.42 415.60 1800.00 1953.98 230.71 230.71 3766.34 3940.51
LT 4684.68 4821.81 2677.28 2688.93 3335.00 3414.54 2397.73 2363.14 13094.69 13288.42
Total 6930.12 7159.80 4644.20 4801.02 6495.00 6914.40 3042.84 3075.00 21112.17 21950.22
Sales

Revenue Assessment

371. Basing on normative parameters like distribution loss, AT & C loss and collection
efficiency as approved in this Retail Supply Tariff order of the Commission, we
proceed to determine the revenue on the following principles.

372. The estimated revenue for FY 2021-22 was found out basing on the billing figure for
FY 2019-20 with normalization for 2020-21 since the figures for the same in FY 2020-
21 are distorted due to pandemic situation.

373. Therefore, relying on the above principle we approve the expected revenue of
DISCOM Utilities for FY 2021-22 as given in the table below:

Table – 34
Revenue of DISCOM Utilities for FY 2021-22
(Rs. Crs.)
TPCODL NESCO Utility TPWODL TPSODL
EHT 630.44 1,061.94 964.14 301.38
HT 851.80 259.87 1,204.75 142.05
LT 2,353.34 1,223.80 1,536.87 1079.30
Total 3,835.58 2,545.61 3,705.75 1,522.73

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 Tariff Related Issues
DISCOM Utilities have raised certain issues which are discussed below:-
Introduction of kVAh Billing

374. The prime objective of the kVAh based billing is to encourage the consumers to
maintain near unity power factor to achieve loss reduction, improve system stability,
power quality and improve voltage profile. Advantages of kVAh billing are

(i) Overloading of Distribution system is avoided resulting in better voltage profile.

(ii) Reduction in line & transformer losses.

(iii) Increase in available line and transformer capacity.

(iv) It captures both real and reactive power

The Commission intends to implement kVAh billing to all consumers other than LT
consumer w.e.f. 4th April 2021. All DISCOMs are required to take all necessary steps
to ensure that all the HT and EHT consumers are billed by kVAh basis from 4th April,
2021 and educate the consumers for the same. All open access transaction will be
maintained in kWh sale only and kVAh based sale shall be converted into kWh base
on the power factor for the month provided in the energy bills if necessary. For
electricity duty purpose the kWh reading of the meter shall be utilised. For load factor
purpose kWh reading shall be taken into consideration. Since kVAh reading captures
both active and reactive power drawal, therefore, there is no necessity for continuing
with either power factor incentive or penalty. Therefore, power factor penalty and
incentive is abolished w.e.f. FY 2021-22. In case of leading power factor whose
instances are relatively few when kVArh are injected into the system from consumer
side. In that event the kWh drawal reading shall be taken and billed as per the kVAh
tariff.

Withdrawal of ToD benefit

375. Some DISCOM Utilities have requested the Commission to withdraw the ToD benefit
where as other DISCOM Utilities want to continue with the same. ToD benefit to the
consumers encourage them to draw more power during off peak hours. This helps in
flattening the load curve of the State. This helps in efficient use of generating,
transmitting and distributing assets. ToD benefit is implemented in Odisha for the
consumers who are capable of segregating their load drawal into peak and off-peak

100
 hours. There are certain consumers who cannot segregate/shift their load from peak
hours to off peak hours. Therefore, all the three phase consumers with static meters are
allowed to avail ToD rebate excluding Public Lighting, emergency supply to CGP, LT
Domestic and LT General Purpose categories @ 20 paise/unit for energy consumed
during off peak hours. Off peak hours has been defined as 10 PM in the evening to 6
AM of the next day.

Demand Charges for HT Medium category consumers.

376. Presently, HT Medium Industries (CD >70 <110 KVA) are paying demand charges
@Rs150/KVA. Some DISCOMs have been submitting for past several years that the
said demand charges should be enhanced to Rs.250/KVA. This matter has already
been dealt with at Para 331 of Retail Supply Tariff order for FY 2020-21. Their
demand fluctuates throughout the year. Their viability cannot be compared with large
industrial consumer. Therefore, the Commission has been consciously keeping
demand charges lower for this category than that of large industry category to
encourage small and medium industries in the State.

MMFC for LT category of consumers

377. This matter has already been dealt with at Para 332 of Retail Supply Tariff Order for
FY 2020-21. Some DISCOM Utilities want that the additional KW in all LT
categories should have uniform MMFC. It is to be stated that this has been done to
give some relief to agriculture, public lighting and small industry consumers. The
revenue from this section of consumers is as such very low. It is expected that
differential KW charges have minimal impact on the revenue inflow from this
category of consumers.

Demand Charges for consumers having CD <110 KVA

378. Some DISCOMs submit that the demand charges for consumers CD <110 KVA
should be computed as 80% of CD or maximum demand whichever is higher similar
to that of consumers having CD >110 KVA. This principle has been followed by the
Commission for past 15 years. This is because the consumers with CD <110 KVA are
basically the consumers who do not use their electrical appliances continuously. There
are many consumers whose electricity uses are seasonal only. The fluctuation in their
demand does not affect the load curve of the State in a perceptible way. Therefore,
compelling them to pay at least 80% of their CD is not justified.

101
 Additional Rebate of 2% to LT category of consumers for Digital Payment

379. Some DISCOM Utilities want that for encouraging digital payment, the additional
rebate of 2% should be granted to the LT domestic and Kutir Jyoti consumers.
Therefore, after consideration of convenience of payment by the consumers, the
Commission decides that 2% rebate over and above normal rebate shall be allowed on
the bill to the LT domestic and single phase General purpose category of consumers
only over and above all the rebates who pay through digital means. This rebate shall
be applicable on the current month bill if paid in full.

Billing to Irrigation category of consumers

380. One DISCOM submits that due to difficulties in putting meters in irrigation category
of consumers load factor billing may be permitted in their case. It is to be mentioned
here that load factor billing has been abolished in principle by this Commission since
the year 2004. Every consumer should be billed only with a correct meter as per the
Electricity Act. Therefore, the submission of the utility is not acceptable.

Mini Steel Plants

381. Some objectors representating Mini Steel Plant category of consumers connected at 33
KV voltage level having induction furnaces have approached the Commission to
reduce their tariff. They state that the tariff of similar industries in neighbouring States
like Chhattisgarh, Jharkhand etc. are comparatively lower than that of Odisha. Thus
steel production costs in those States have become low. These industries in
neighbouring States procure iron ore, sponge iron, pellets etc. from Odisha and
process the same in their induction furnace and supply them again back to Odisha at
cheaper rate which makes the product of Odisha unviable in the market. Considering
the surplus power situation in the state and drawal of those industries at 33 KV the
Commission directs as follows:

“All the industrial consumers (Steel Plant) having CD of 1 MW and above and drawing
power in 33 KV shall be allowed a rebate of 30 paise per unit (kVAh) for the units
consumed in excess of 60% of load factor and up to 70% of load factor and 40 paise per
units (kVAh) for the units consumed above 70% load factor upto 80% load factor and 50
paise per units (kVAh) for energy drawn in excess of 80% load factor per month. This
shall be in addition to all other rebate the consumer is otherwise eligible.”
Cold Storage Tariff

382. The Odisha Cold Storage Association has submitted that they should be allowed a
tariff equal to Allied Agricultural Activities. This is because their business is

102
 becoming unviable due to higher Allied Agro Industrial tariff which is higher than
Allied Agricultural tariff. A meeting was convened by Director Horticulture of Odisha
under the Chairmanship of APC-Cum-Additional Chief Secretary where it was
decided that the Cold Storage Association would request OERC to classify the cold
storage under Allied Agricultural Activities. Accordingly, they have filed the present
application. Since this matter relates to amendment of Regulation this request cannot
be accommodated here. The Commission in due course will take step in this regard.

Meter Rent

383. The meter rent w.e.f. 04.04.2021 shall be as follows:

Table - 35
Type of Meter Monthly Meter Rent (Rs.)
1. Single phase electro-magnetic kWh meter 20
2. Three phase electro-magnetic kWh meter 40
3. Three phase electro-magnetic tri-vector meter 1000
4. Tri-vector meter for Railway Traction 1000
5. Single phase Static kWh meter 40
6. Three Phase Static kWh meter 150
7. Three phase Static Tri-vector meter 1000
8. Three phase Static Bi-vector meter 1000
9. LT Single Phase Smart Meter 60
10. LT Three phase AMR/AMI compliant meter 150
Note: Meter rent for meter supplied by DISCOMs shall be collected for a period of
60 months only. Once it is collected for sixty months meter rent collection
should stop. All statutory levies shall be collected in addition to meter rent.
The Commission may revise the meter rent by a special order.

Tatkal Scheme for New Connection

384. The Tatkal Scheme for consumers availing LT supply for Domestic, Agricultural and
General Purpose shall continue as directed vide para 293 of the RST order for FY
2017-18. The Tatkal charges will continue to be applied as given below:

Table - 36
Category of Consumers Tatkal charges
LT Single phase upto 5 kW load Rs.2000/-
LT three phase 5 kW and above Rs.2500/-
LT Agricultural consumers Rs.1000/-
LT General Purpose single phase and three phase consumers Rs.4000/-
The above Tatkal charges do not include meter cost and over and above the charges
mentioned for the respective category in OERC Supply Code, 2019.

103
 No cost to be recovered from consumer upto 5 KW for transformer upgradation

385. This matter has been dealt with at para 343 of Retail Supply Tariff Order for FY 2020-
21. During hearing of the views of objectors and consumers and on many occasions
the Commission has come across the complaints of small consumers who are denied
service connection by DISCOM Utilities on the pretext of overloading of area
transformer. On the other hand it is learnt from Government of Odisha that a large
number of distribution transformers have been supplied to DISCOM Utilities.
Therefore, there is no shortage of transformers at any DISCOM Utilities. DISCOM
Utilities have also concurred this view in the SAC Meeting where this issue was
discussed. Therefore, it is directed that while providing new LT supply upto 5 KW, the
cost of upgradation of transformer or installation of new transformer shall not be
insisted upon or recovered from the consumers in the context of remunerativeness of
the connection.

Cross-subsidy in Tariff

386. Cross Subsidy has been defined in Reg.7.77 of OERC (Terms and Conditions of
Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2014 which
is in conformity with para 8.3.2 of Tariff Policy and para 5.5.2 of National Electricity
Policy. This is reproduced below:

“7.77 For the purpose of computing Cross-subsidy payable by a certain category of

consumers, the difference between average cost of supply to all consumers of the State
taken together and average voltage-wise tariff applicable to such consumers shall be
considered.”
According to that Regulation, cross subsidy is to be worked out basing on the average
cost of supply to all consumers of the State taken together and average voltage-wise
tariff applicable to such consumers. The average cost of supply for Odisha for FY
2021-22 is follows:

Table – 37
Average Cost of Supply (per Unit) FY 2021-22
2021-22
Expenditure
(Approved)
Cost of Power Purchase 8,257.57
Transmission Cost 780.36
SLDC Cost 4.81
Total Power Purchase, Transmission and SLDC Cost (A) 9,042.74
Net Employee costs 1,777.19
Repair and Maintenance 481.75

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 2021-22
Expenditure
(Approved)
Administrative and General Expenses 240.93
Provision for Bad and Doubtful Debts 86.52
Depreciation 134.24
Interest Chargeable to Revenue including Interest on S.D 106.20
Sub-Total 2,826.82
Less: Expenses capitalised -
Total Operation and Maintenance and Other Cost 2,826.82
Return on Equity 168.00
Total Distribution Cost (B) 2,994.82
Amortisation of Regulatory Asset -
True up of Past Losses -
Contingency reserve -
Total Special Appropriation (C) -
Total Cost (A+B+C) 12,037.56
Approved Saleable Units (MU) 21,950.22
Average Cost (paisa per unit) 548.40
For the purpose of calculating average tariff, the estimated revenue realization from a
voltage category and total sales to that category have been taken into consideration.
Average Tariff realization = Total expected revenue to be realized from a category
for a category as per ARR/ Total anticipated sales to that category as
per ARR

The cross-subsidy calculated as per the above methodology is given in the table
below:
Table - 38
Cross Subsidy Table for FY 2021-22
Average cost Percentage of
Average Cross-
Level of of supply for Cross-subsidy
Year Tariff Subsidy Remarks
Voltage the State as a above/below of
P/U P/U
whole (P/U) cost of supply
1 2 3 4 5= (4) – (3) 6= (5 / 3) 7
EHT 580.45 92.19 18.88%
2017-18 HT 488.26 581.60 93.34 19.12% The tariff
LT 398.95 -89.31 -18.29% for HT
576.88 87.41 17.86% and EHT
EHT
categories
2018-19 HT 489.47 579.18 89.71 18.33%
have been
LT 398.72 -90.76 -18.54%
calculated
EHT 577.21 77.49 15.51%
basing on
2019-20 HT 499.71 579.38 79.67 15.94%
average
LT 406.21 -93.50 -18.71% tariff of
EHT 595.77 71.15 13.56% that
2020-21 HT 524.62 596.18 71.56 13.64% category.
LT 433.81 -90.81 -17.31%

105
 Average cost Percentage of
Average Cross-
Level of of supply for Cross-subsidy
Year Tariff Subsidy Remarks
Voltage the State as a above/below of
P/U P/U
whole (P/U) cost of supply
EHT 626.50 78.10 14.24%
2021-22 HT 548.40 623.90 75.49 13.77%
LT 466.07 -82.33 -15.01%
387. It would be noted from the above that Commission, in line with the mandate of the
National Electricity Policy and Tariff Policy, has managed to keep cross-subsidy
among the subsidised and subsidising category of consumers in the State within ±20%.
The Commission makes it clear that the above cross subsidy is meant only for Retail
Supply Tariff fixation in the state applicable to all consumers (except BPL and
agriculture) and not to be confused with cross subsidy surcharge payable by open
access consumers to the DISCOM. The cross subsidy surcharge is applicable only to
open access consumers which is discussed hereinafter.

Open Access Charges (Cross Subsidy Surcharge and Wheeling Charges)

388. The tariff for HT and EHT consumers for determination of cross subsidy surcharge
has been assumed at 100% load factor since open access drawal is made to utilise the
full quantum of the power so availed. The formula prescribed in Tariff Policy in Para
8.5.1 for determination of cross subsidy surcharge is as follows:

Surcharge formula:
S= T – [C/ (1-L/100) + D+ R]
Where:
S is the surcharge
T is the tariff payable by the relevant category of consumers, including reflecting the
Renewable Purchase Obligation
C is the per unit weighted average cost of power purchase by the Licensee, including
meeting the Renewable Purchase Obligation
D is the aggregate of transmission, distribution and wheeling charge applicable to the
relevant voltage level
L is the aggregate of transmission, distribution and commercial losses, expressed as a
percentage applicable to the relevant voltage level
R is the per unit cost of carrying regulatory assets.

389. As in the previous year Commission accepts ‘C’ equal to BSP of respective DISCOM

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 Utilities as explained above. Similarly ‘T’ is the tariff at 100% load factor including
demand charges for the respective voltage level. The wheeling charges ‘D’ is as
determined from the distribution cost approved for the FY 2021-22 and ‘L’ is assumed
8% at HT and nil for EHT since EHT loss is accommodated in transmission charges.

390. Commission does not differentiate between 11 KV and 33 KV in determination of

wheeling charges. The wheeling as per our Wheeling Tariff and Retail Supply Tariff
Regulations, 2014 includes distribution system and associated facilities of a
distribution licensee, therefore, includes the network both at 33 KV and 11 KV.
Therefore, the Commission determines a single wheeling charge for 11 KV and 33
KV.

391. Basing on the above the wheeling charges and cross subsidy surcharges have been
determined as follows:

Table – 39
Wheeling Charges Approved for FY 2021-22
NESCO
TPCODL TPWODL TPSODL
Utility
Energy Handled at HT (MU) 8292.22 4183.52 7054.12 3618.85
Net Distribution Cost (Rs. Crs.) 647.27 394.52 424.45 358.06
Wheeling Charge calculated for
78.06 94.30 60.17 98.94
2021-22 (Paise per unit)

Table - 40
Computed Surcharge for Open access consumer 1MW and above
NESCO
DISCOM PCODL TPWODL TPSODL
Utility
Surcharge for EHT Consumer (P/U) 260.88 223.88 206.88 336.88
Surcharge for HT Consumer (P/U ) 162.76 106.30 121.95 224.49

392. As per mandate of the Electricity Act, 2003 under Section 42 the cross subsidy
surcharge is to be reduced progressively. The Commission is authorized to evolve a
methodology for such reduction. Accordingly, the Commission has fixed the leviable
surcharge at 63% of the computed value for FY 2021-22.

Table – 41
Leviable Surcharge, Wheeling Charge and Transmission Charge for Open access
consumer 1MW and above for FY 2021-22
Name of the Cross Subsidy Wheeling Charge Transmission Charges
licensee Surcharge (P/U) P/U applicable to for Open access
EHT HT HT consumers only Customer
TPCODL 164.35 102.54 78.06 The Open Access
NESCO 141.04 66.97 94.30 customer availing open

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 Utility access shall pay
TPWODL 130.33 76.83 60.17 Rs.6720/MW/Day
(Rs.280/MW/Hour) as
TPSODL 212.23 141.93 98.94
transmission charges

Additional Surcharge

393. As per principle followed in the previous order, we have not determined additional
surcharge over and above the surcharge to be paid to the DISCOM Utilities to meet
the fixed cost of licensee arising out of his obligation to supply as provided under Sub-
Section 4 of Section 42 of the Act. This is because no such case has been brought
before us by the DISCOM Utilities.

In summary,

(i) The wheeling charge, transmission charge and surcharge as indicated in Table
above shall be applicable from 04.04.2021.

(ii) The normative transmission loss at EHT (3%) and normative wheeling loss for
HT level (8%) shall be applicable for the year 2021-22.

(iii) Additional Surcharge: No additional surcharge over and above the Cross-
Subsidy Surcharge needs to be given at present.

(iv) No Cross-subsidy surcharge is payable by the consumers availing Renewable

power through open access.

(v) 20% Transmission & Wheeling charge is payable by the consumers drawing
power through open access from Renewable source excluding Co-generation
and Bio mass power plant.

These charges as notified for FY 2021-22 will remain in force until further orders.

FINANCIAL ISSUES FY 2021-22

Employees Cost

394. The four DISCOMs, WESCO (now TPWODL w.e.f. 01.01.2021), NESCO,
SOUTHCO (now TPSODL w.e.f. 01.01.2021) and TPCODL in their ARR and tariff
petition for the FY 2021-22 have projected employee cost at an higher projection
compared to what was approved in the RST order for FY 2020-21. A comparison of
the approved Employees cost for FY 2020-21 and proposed by DISCOMS for FY
2021-22 is shown in the following table.

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 Table – 42
Employee Cost
(Rs. in Cr.)
Sl.
Particulars TPWODL NESCO TPSODL TPCODL TOTAL
No
Approved Proposed Approved Proposed Approved Proposed Approved Proposed Approved Proposed
(2020-21) (2021-22) (2020-21) (2021-22) (2020-21) (2021-22) (2020-21) (2021-22) (2020-21) (2021-22)
1 Basic Pay + GP 115.98 213.90 104.41 106.32 100.94 99.76 206.49 297.68 527.82 717.66
2 DA 31.31 55.61 28.19 28.71 27.25 27.93 55.75 74.44 142.50 186.69
3 Reimbursement of HR 16.38 19.25 15.06 19.14 14.30 16.79 41.29 42.54 87.03 97.72
4 Other allowance 3 3.01 0.39 2.62 1.60 1.95 5.5 6.05 10.49 13.63
Arrear of 7th Pay
5 commission of regular 7.66 38.32 5.95 29.73 6.19 30.94 22.50 77.50 42.30 176.49
employees
7th Pay arrear of
retired employees
towards differential
6
gratuities, commuted
pension and unutilised
leave
7 Bonus 0.80 0.30 0.00 0.08 0 0.64 0.70 1.52 1.00
Outsource, contractual
8 and additional 39.70 50.81 32.81 35.29 77.94 83.83 43.17 52.10 193.62 222.03
employee cost
Additional Employee
9 Cost (New
Recruitment)
Total Emoluments (1
10 214.91 381.20 186.80 221.81 228.30 261.20 375.34 551.01 1005.35 1415.22
to 9)
Med. Allowance/
11 Reimbu. of medical 4.87 10.70 4.15 5.32 4.03 4.99 10.31 10.63 23.36 31.64
expenses
Leave Travel
12 0.17 0.05 0.15 0.15 0.15 0.15 0.01 0.00 0.48 0.35
Concession
13 Honorarium 0.20 0.20 - 0.02 0.01 0.00 0.22 0.21
Payment under
14 workmen 0.07 0.25 0.09 0.09 0.29 0.29 0.53 0.58 0.98 1.21
compensation Act
Expenses towards
15 0.00 2.65 2.92 2.92
uniform to Employees
16 Ex-gratia 0.10 0.30 2.12 2.23 0.00 2.22 2.53
17 Other Staff Costs 0.60 0.50 1 1.06 0.35 0.56 1.26 1.39 3.21 3.51
Total Other Staff
18 6.01 12.00 7.50 8.85 4.84 6.00 14.76 15.52 33.11 42.37
Costs (11 to 17)
Staff Welfare
19 1.00 1.00 2.61 2.74 4.04 4.18 1.32 1.45 8.97 9.37
Expenses
Terminal Benefits
(Pension + Gratuity +
20 141.47 132.31 152.06 129.38 134.90 144.89 230.74 233.67 659.17 640.25
Leave+ PF +
Commuted+NPS/CPS)
21 Total (10+ 18+19+20) 363.39 526.51 348.98 362.78 372.08 416.27 622.15 801.65 1706.60 2107.21
Less : Empl. cost
22 2.37 2.65 0.14 0.15 1.20 0.00 15.4 29.00 19.11 31.80
capitalized
Total Employees Cost
23 361.02 523.86 348.84 362.63 370.88 416.27 606.75 772.65 1687.49 2075.41
(FY 2021-22)
% rise over approved
45.10 3.95 12.24 27.34 22.99
FY 2020-21

395. The above table reveals that for the ensuing year all the licensees have proposed a rise
in employee’s cost compared to the approval for the FY 2020-21. TPWODL, NESCO
Utility, TPSODL and TPCODL have projected an increase over the approval of FY
2020-21 at 45.10%, 3.95%, 12.24% and 27.34% respectively. The overall projection
for all DISCOMs together is 22.99% more than the previous year approval.

396. The Commission allows Employees cost in terms of the MYT principles enunciated in

109
 its order dated 20.03.2013. The relevant portion of said order is reproduced below:

“16.1 Employee Cost

The three DISCOMs, WESCO, NESCO & SOUTHCO submitted to provide employee
cost through indexation mechanism linked to CPI during the control period in line
with the model FOR MYT Regulations. CESU submitted to take into account the
employee cost due to massive RGGVY expansion of network. DISCOMs also submitted
that incentive and dis-incentive scheme may be introduced to improve productivity
level.
The Commission after considering the submissions has decided to continue with the
employee cost allocation in the ARR on the same principles as adopted during the
second control period.
Wages and salaries during this control period would include the base year values of
Basic pay and Grade Pay escalated for annual salary increments and inflation based
on Govt. of Odisha notification. The sixth pay recommendation notified by Govt. of
Odisha recommends annual increment @ 3% of the Basic and grade pay. The annual
increment would be approved as per such recommendation. Basic Pay and grade pay
are to be taken from annual audited accounts of the Licensee. However if as per the
Commission’s assessment the figures shown in the audited accounts cannot be relied
upon, the Commission may take into account the actual payment outgo during the last
six months of the year to arrive upon the pay for the ensuing year. Dearness
Allowance, HRA and other allowance would be calculated as per rates notified by
Govt. of Odisha. Terminal liabilities would be provided based on a periodic actuarial
valuation to be made by OERC in line with the prevailing Indian accounting
standards. The financial impact of any award by Govt. of India/Govt. of Orissa shall
be taken care of in subsequent year in truing up. XXXXXX”
397. In the order No. 11/2020, relating to vesting of CESU, TPCODL was asked to submit
proposed plan towards O&M expenses which includes Employees cost, Repair and
Maintenance and A&G costs. TPCODL accordingly submitted a petition for the
approval of Annual Business Plan (ABP) for FY 2020-21. The Commission vide its
order dated 16.11.2020 approved the Annual Business Plan Order for TPCODL
towards additional expenses in O&M expenses for FY 2020-21.

398. TPCODL in the ARR petition for FY 2021-22 has submitted that as per the present
plan, TPCODL would recruit 497 employees in FY 2020-21. The employment is
within the approved levels of recruitment i.e 8% of 1367 employees. However, the
actual expenditure is of the order of Rs 53.30 Crores for 10 months. The 497
employees who would join would also include employees at senior level whose
salaries are higher than the average salary for 1367 employees. Hence average per
employee cost of 1367 employees cannot be strictly applied to the 497 employees and
the same is reason for deviation from the approved expenditure. The actual
expenditure for FY 2020-21 is expected to be to the tune of Rs. 102.30 crore which

110
 includes additional expenditure of Rs.53.30 cr for 10 months and Rs.49 cr towards
outsourced employees for FY 2020-21.

Employee Cost Projection for FY 2021-22 of TPCODL:

399. TPCODL submitted that based on the direction of the Commission, TPCODL would
gradually increase the proposed manpower in a period of say 3-5 years and not in one
year as proposed in the ABP petition. Accordingly, for FY 2021-22, TPCODL would
further increase the manpower by 4 % to meet the requirement of the work in that
year. Hence considering this, the estimated additional manpower expenses would be as
follows:

Table -43
Additional employee expenses for FY 2021-22
Sl. No. Head of Expenditure FY 2021-21
1 Salaries of Existing Employees (497 Nos.) 55.59
2. Salaries of 250 Employees to be recruited in FY 2021-22 17.87
3. Insurance (Medical +GPA) 2.00
4. HR Operation Cost 10.03
Total 85.49
Add
5 Out sourced manpower 52.10
Total 137.6

400. In order to arrive at the estimates of requirement under Basic Pay including Grade
Pay, the number of employees as on 31.3.2020, 31.03.2021 and 31.03.2022 from the
submissions are ascertained. The position of the employees up to the end of FY 2021-
22 as proposed by the Licensees is shown in the following table :

Table – 44
Employees Proposed (2021-22)
Employees Proposed (FY 2021-22) TPWODL NESCO TPSODL TPCODL
No. of employees as on 01.04.2020 2510 2320 2109 4931
Add: Addition during 2020-21 0 0 6 3
Less: Retirement/Expired 145 131 216
184
Resignation during 2020-21
No. of employees as on 31.03.2020 2326 2175 1984 4718
Add: Addition during 2021-22 881 0 0 0
Less: Retirement/Expired/ 77 94 203
153
Resignation during year 2021-22
No. of employees as on 31.03.2022 3054 2098 1890 4515

401. The Utilities have submitted that the number of consumers in the area have increased
almost 90 times in the span of 20 years whereas the employee strength which was

111
 during 1998 has now reduce to almost half as on March 2020. The reduced manpower
has led to outsourcing of the major activities like billing, collection, grid maintenance,
vigilance, watch and ward, etc. These factors have put challenge to provide quality
uninterrupted power supply to the consumers. Since 2011 there has been no
recruitment for the Utility in spite of the reduction in employees due to
retirement/death etc.

402. The Commission passed an order dated 16.11.2020 approving the ABP of TPCODL
FY 2020-21. In such approval of annual business plan order for TPCODL, the
Commission observed that it is aware that in the DISCOMs no new significant
recruitments have been made during last 10 years and DISCOMs have appreciable
shortage of required manpower. The ratio of the employees versus consumers has also
widened over the years and bringing in new employees will bridge this gap for
efficient functioning of the DISCOMs. The Commission therefore allowed 8% of the
total manpower during the FY 2020-21 to TPCODL and stipulated that the new
recruitments be made as per operational requirements. The TPCODL has accordingly
projected to recruit 498 number of additional manpower during the FY 2020-21.
TPCODL has further stated that it would gradually increase the proposed manpower in
a period of 3 to 5 years and it would increase the manpower by 4% to meet the
requirement during the FY 2021-22.

403. In the meantime TPWODL and TPSODL came into operation w.e.f. 01.01.2021 which
is later than the submission of the ARR petition for FY 2021-22. In terms of their
respective vesting order, TPWODL and TPSODL have also made additional
submission with regard to the O&M cost for the current FY 2020-21 and further
projections for FY 2021-22 beyond the ARR projections as per the petitions submitted
on 30.11.2020 by the utilities WESCO and SOUTHCO. The Commission in such a
scenario will consider such additional submission towards Annual Business Plan of
TPSODL and TPWODL and hear the same from different stakeholders before
approving the same. In the present order the Commission has taken into consideration
the proposal made in the original ARR petition for FY 2020-21.

404. The Commission after analysis for the purpose of calculation of Basic pay only
considers no new addition during the current FY 2020-21 and also during the ensuing
FY 2021-22. The Commission directs in the next ARR the DISCOMs shall submit the
actual additions impacting the basic pay and other additions. Accordingly Commission

112
 approves following number of employees for the DISCOMs for FY 2021-22 only for
the purpose calculation of basic pay.

Table – 45
Employees Approved (2021-22) TPWODL NESCO TPSODL TPCODL
No. of employees as on 01.04.2020 2510 2320 2109 4931
Add: Addition during 2020-21 0 0 6 3
Less: Retirement/Expired
184 145 131 216
Resignation during 2020-21
No. of employees as on 31.03.2020 2326 2175 1984 4718
Add: Addition during 2021-22 0 0 0 0
Less: Retirement/Expired/
153 77 94 203
Resignation during year 2021-22
No. of employees as on 31.03.2022 2173 2098 1890 4515
Average no. of employees for FY
2418 2248 2047 4825
2020-21
Average no. of employees for FY
2250 2137 1937 4617
2021-22

405. The above table projects the addition and exit of employees those who are under the
prescribed pay scales of the utility and the estimation of basic pay is made accordingly
for the approval of employee cost. The Commission in the approval for the Annual
Business plan of the TPCODL in case No. 41/2020 dated 16.11.2021 have observed
the following with regard to new recruitment:

‘In view of the above Regulations, the wages and salaries shall be determined on the
basis of basic pay and Grade pay in the structured pay scale. Other allowances are
also linked to the pay scales which are allowed as per the Government of Odisha
rates. In the present context however, the wages and salaries proposed for the new
induction will not be based on such pay scales but as per the industry norms to be
decide by the TPCODL”.
The Commission in view of the above observations provisionally allows Rs.24 crore
each to TPWODL, TPSODL and NESCO Utility and Rs.54 crore to TPCODL towards
additional employee cost including new recruitment for FY 2021-22.

406. All the Licensees have projected their employee cost for FY 2021-22 taking into
account the impact of 7th Pay Commission recommendations including arrears for
previous years. The DISCOMs in the reply to queries of the Commission furnished
the actual cash outflow on Basic Pay + GP from April, 2020 to November, 2020 (for a
period of 8 months). Accordingly the Basic pay and GP for FY 2020-21 as given in
the reply to query has been extrapolated to arrive at Basic pay for FY 2021-22. The
Commission in accordance with the OERC (Terms and conditions for Determination

113
 of Wheeling Tariff and Retail Supply tariff) Regulations, 2014, allows 3% escalation
on Basic Pay and Grade Pay (based on Govt of Odisha notification on the escalation of
annual salary increments) towards normal annual increment on year to year basis and
the same principle shall also continue for estimation of Basic pay and GP for this ARR
also. The actual Basic pay and GP drawn for the period April, 2020 to November,
2020 was prorated for the entire year and the quantum of Basic pay and GP for FY
2021-22 was estimated by factoring the average no. of employees for FY 2020-21 and
FY 2021-22.

407. The DA as per the 7th Pay Commission recommendations and the projected DA
thereof for FY 2021-22 is shown in the following table:

Table – 46
Effective Date Rate Status
01.01.2016 nil Approved By GoO
01.07.2016 2% Approved By GoO
01.01.2017 4% Approved By GoO
01.07.2017 5% Approved By GoO
01.01.2018 7% Approved By GoO
01.07.2018 9% Approved By GoO
01.01.2019 12% Approved By GoO
01.07.2019 17% Approved By GoO
01.01.2020 20% Projected
01.07.2020 23% Projected
01.01.2021 26% Projected
01.07.2021 29% Projected
01.01.2022 32% Projected

As per the above table the DA rate for FY 2020-21 is assumed to be 29%.

House Rent Allowance and Medical Allowance

408. House rent allowance and Medical Allowances have been allowed for FY 2021-22 as
a proportion of the basic pay after implementation of 7th Pay Commission
recommendations as submitted by the DISCOMs.

Outsource and Contractual employees Cost

409. As regards engagement of manpower, DISCOMs have submitted in the ARR that
since no recruitment has been permitted by the Commission there has been drastic
reduction in the manpower. In view of the large scale electrification through rural
electrification, addition of new consumers, reorganisation, and to carry out MRT,
Energy Audit, maintenance of DTRs and vigilance activities present manpower is

114
 inadequate. Consequently in order to improve 100% coverage, reduction of
distribution loss and to improve collection they have engaged contractual personnel
and outsource agencies for maintenance of existing Grid substations, sub stations
under ODSSP, watch and ward activity, vigilance activities etc. DISCOMs were asked
to submit the actual expenses on these activities during the current financial year
2020-21. The Commission after scrutiny allows the expenses on Contractual and
outsource employees for the ensuing FY 2021-22 on the basis of the submission of
DISCOMs and actual cash outgo for the current year 2020-21.

Analysis of LT Division-wise Performance and Employee Performance

410. The Commission have analysed the LT loss level of various divisions of DISCOMs as
submitted by the DISCOMs. This reveals the performance of the Divisions for FY
2019-20 on the various parameters as given in the following tables:-

Table – 47
LT Division-wise Performance (2019-20) – WESCO Utility (Now TPWODL)
Sl. No. Name of No of Energy Energy Loss % Billing Billing To Collection Collection AT & C LT P/U
Division Consumers Input (MU) Sold (MU) (Assuming Efficiency Consumers Received Efficiency Loss Realisati
(Assuming HT Loss (%) (Rs. Crs.) (Rs. in (%) (%) on
HT Loss 8%) Crs.)
8%)
OERC Target For 4178 3174.7 24.0% 76.0% 1260.7 1230.5 97.6% 25.8% 294.5
2019-20
1 Bargarh(W) 158129 427 266 38% 62% 84 28 34% 79.1% 66
2 Bargarh 117010 428 260 39% 61% 114 50 44% 73.3% 117
3 Sonepur 134462 206 177 14% 86% 65 23 35% 70.1% 110
4 Titilagarh 197385 286 178 38% 62% 75 38 51% 68.5% 133
5 Bolangir 135592 297 164 45% 55% 70 41 59% 67.2% 139
6 Nuapada 114279 179 101 44% 56% 41 26 64% 63.9% 146
7 Kwed 138705 153 104 32% 68% 45 26 58% 60.6% 172
8 Sambalpur 109598 226 159 30% 70% 73 45 62% 56.6% 198
(East)
9 Sambalpur 60065 235 182 22% 78% 91 59 65% 49.7% 251
10 Keed 142984 182 165 9% 91% 68 39 58% 47.7% 215
11 Sundergarh 112433 136 122 10% 90% 56 39 69% 38.5% 285
12 Jharsuguda 121007 201 177 12% 88% 83 59 71% 37.4% 293
13 Deogarh 70451 60 57 6% 94% 25 16 67% 37.2% 272
14 Brajrajnagar 51095 89 79 11% 89% 36 26 72% 35.8% 293
15 Rourkela- 108753 157 147 6% 94% 70 55 78% 26.9% 349
Sadar
16 Rourkela 71049 142 134 6% 94% 63 54 86% 19.4% 382
17 Rajgangpur 119752 134 134 1% 99% 61 53 86% 14.8% 392
Total TPWODL 1962749 3538.640 2604.737 26.4% 73.6% 1119.36 676.95 60.5% 55.5% 191

Table – 48
LT Division-wise Performance (2019-20) – NESCO Utility
Energy
T&D
Input Billing to Collection
Energy Loss (%) Billing Collection AT &
Sl. No. of (MU) Consumer Received
Name of Division Sold (Assuming Efficiency Efficiency C Loss
No. Consumers (Assuming (Rs. in (Rs. in
(MU) HT Loss (%) (%) (%)
HT Loss Crs.) Crs.)
8%)
8%)
OERC Target /Approval 3413.247 2589.414 24.14% 75.86% 1029.78 1019.48 99.00% 24.89%
ACTUAL
1 BED, Balasore 59068 153.086 132.028 13.76% 86.24% 66.67 56.44 84.65% 26.99%
2 BTED, Basta 82059 121.413 89.486 26.30% 73.70% 35.72 18.99 53.17% 60.81%
3 JED, Jaleswar 112821 159.285 123.057 22.74% 77.26% 46.28 31.17 67.34% 47.98%

115
 Energy
T&D
Input Billing to Collection
Energy Loss (%) Billing Collection AT &
Sl. No. of (MU) Consumer Received
Name of Division Sold (Assuming Efficiency Efficiency C Loss
No. Consumers (Assuming (Rs. in (Rs. in
(MU) HT Loss (%) (%) (%)
HT Loss Crs.) Crs.)
8%)
8%)
4 CED, Balasore 111139 186.100 119.644 35.71% 64.29% 52.49 32.61 62.13% 60.05%
5 SED, Soro 141036 153.646 133.011 13.43% 86.57% 58.44 44.39 75.95% 34.25%
6 BNED, Bhadrak (N) 176726 280.772 237.253 15.50% 84.50% 108.17 65.72 60.75% 48.66%
7 BSED, Bhadrak (S) 109490 136.308 116.849 14.28% 85.72% 50.01 28.80 57.60% 50.62%
8 BPED, Baripada 219803 263.265 236.474 10.18% 89.82% 109.43 73.55 67.22% 39.62%
9 UED, Udala 102166 84.554 92.104 -8.93% 108.93% 40.65 19.87 48.87% 46.76%
10 RED, Rairangpur 187420 170.422 151.673 11.00% 89.00% 66.95 39.00 58.25% 48.16%
11 JRED, Jajpur Road 95281 197.122 155.108 21.31% 78.69% 73.10 48.50 66.36% 47.79%
12 JTED, Jajpur Town 97976 166.388 104.334 37.29% 62.71% 45.01 32.63 72.50% 54.54%
13 KUED, Kuakhia 115641 195.397 125.257 35.90% 64.10% 55.48 34.42 62.03% 60.24%
14 KED, Keonjhar 97890 91.199 108.383 -18.84% 118.84% 53.04 36.72 69.23% 17.73%
15 JOED, Joda 80783 114.151 118.303 -3.64% 103.64% 58.30 44.36 76.09% 21.14%
16 AED, Anandapur 117257 133.142 111.310 16.40% 83.60% 50.14 28.15 56.15% 53.06%
NESCO Total 1906556 2606.250 2154.274 17.34% 82.66% 969.88 635.33 65.51% 45.85%

Table – 49
LT Division-wise Performance (2019-20) – SOUTHCO Utility (Now TPSODL)
Loss (%) LT
Energy Billing AT &
Sl. No. of Energy (Assuming Collection Collection Realisation
Name of Division Sold Efficiency C Loss
No. Consumer Input(MU) HT Loss Received Efficiency per LT
(MU) (%) (%)
8%) (Cr.) (%) Input p/u
OERC Target /Approved
3,112 2,290.931 26.4% 73.6% 894.5 98.6% 27.4% 2.87
for 2019-20
1 Aska-I 64205 126.05 52.41 58.42% 41.58% 17.31 79.66% 66.87% 1.37
2 Aska-II 66344 104.37 52.22 49.97% 50.03% 15.30 68.62% 65.66% 1.47
3 Nawarangpur 280133 199.91 144.34 27.80% 72.20% 33.17 50.91% 63.24% 1.66
4 Boudh 108163 96.02 75.91 20.95% 79.05% 15.16 52.89% 58.19% 1.58
5 Malkangiri 139751 130.33 112.60 13.60% 86.40% 23.79 50.04% 56.76% 1.83
6 Koraput 147077 130.86 86.09 34.21% 65.79% 26.01 69.14% 54.52% 1.99
7 Chatrapur 114673 168.56 110.49 34.45% 65.55% 34.80 73.70% 51.69% 2.06
8 Purusottampur 117366 140.22 94.45 32.65% 67.35% 28.47 74.26% 49.98% 2.03
9 Hinjili 90295 124.60 80.11 35.70% 64.30% 26.15 80.05% 48.53% 2.10
10 Bhanjanagar 138151 155.99 95.57 38.74% 61.26% 35.45 88.25% 45.93% 2.27
11 Phulbani 158368 126.97 88.31 30.45% 69.55% 28.11 78.38% 45.49% 2.21
12 Jeypore 154963 160.10 136.94 14.47% 85.53% 42.17 71.91% 38.49% 2.63
13 Digapahandi 108642 109.21 86.14 21.13% 78.87% 27.52 79.78% 37.07% 2.52
14 Parlakhemundi 136860 109.11 93.88 13.96% 86.04% 40.49 86.32% 25.73% 3.20
15 Gunupur 75958 67.65 60.82 10.10% 89.90% 20.99 83.42% 25.01% 3.10
16 Rayagada 166167 143.85 136.43 5.16% 94.84% 48.64 82.45% 21.81% 3.38
17 Berhampur- III 74248 90.00 79.38 11.80% 88.20% 32.38 93.35% 17.67% 3.60
18 Berhampur- II 60283 143.88 128.99 10.35% 89.65% 61.64 98.19% 11.98% 4.28
19 Berhampur- I 77002 153.65 146.64 4.56% 95.44% 66.50 93.77% 10.50% 4.33
Actual Total TPSODL 2,278,649 2471.95 1861.71 24.69% 75.31% 618.50 76.98% 42.02% 2.50

Table – 50
LT Division-wise Performance (2019-20) – CESU (Now TPCODL)
Sl. Name of No of Energy Energy Loss (%) Billing to Collection Collection AT & C LT
No. Division Consumers Input(MU) Sold (MU) (Assuming Consumers Received Efficiency Loss (%) Realization
HT Loss (Cr.) (Cr.) (%) Per LT
8%) Input
OERC Target / 6,353.5 4,798.8 24.5% 2023.19 2002.96 99.0% 25.22% 3.15
Approved for 2019-20
1 BCDD-1 59975 226.3 232.04 -2.5% 130.35 126.78 97.3% 0.3% 5.60
2 BCDD-2 168070 445.8 454.30 -1.9% 237.06 232.85 98.2% -0.1% 5.22
3 BED 122945 403.1 374.13 7.2% 194.78 186.36 95.7% 11.2% 4.62
4 NEDN 174791 280.1 173.43 38.1% 78.45 40.84 52.1% 67.8% 1.46
5 PED 177787 301.0 260.12 13.6% 113.75 83.40 73.3% 36.6% 2.77
6 NED 204025 204.6 179.71 12.2% 75.37 63.82 84.7% 25.6% 3.12
7 KED 175443 318.0 245.87 22.7% 108.95 89.66 82.3% 36.4% 2.82
8 BEDB 107934 164.8 127.15 22.9% 51.84 42.32 81.6% 37.0% 2.57
9 CED 149997 333.5 201.24 39.7% 102.54 52.30 51.0% 69.2% 1.57
10 CDD-I 75142 276.3 255.77 7.4% 133.82 135.67 101.4% 6.1% 4.91
11 CDD-II 72860 247.1 212.03 14.2% 112.13 102.57 91.5% 21.5% 4.15
12 AED 121228 234.7 116.23 50.5% 53.74 25.59 47.6% 76.4% 1.09

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Sl. Name of No of Energy Energy Loss (%) Billing to Collection Collection AT & C LT
No. Division Consumers Input(MU) Sold (MU) (Assuming Consumers Received Efficiency Loss (%) Realization
HT Loss (Cr.) (Cr.) (%) Per LT
8%) Input
13 SED 111117 180.9 112.07 38.1% 53.21 24.25 45.6% 71.8% 1.34
14 KED-I 192002 257.2 177.08 31.1% 78.93 70.53 89.4% 38.5% 2.74
15 KED-II 90291 94.9 59.45 37.4% 24.85 23.00 92.5% 42.0% 2.42
16 PDP 106686 176.3 120.39 31.7% 53.65 39.11 72.9% 50.2% 2.22
17 JED 120376 155.3 108.73 30.0% 47.33 42.63 90.1% 36.9% 2.74
18 DED 180351 385.0 218.23 43.3% 99.60 91.69 92.1% 47.8% 2.38
19 ANED 143414 260.5 152.06 41.6% 72.36 65.32 90.3% 47.3% 2.51
20 TED 138512 312.7 159.14 49.1% 75.84 59.62 78.6% 60.0% 1.91
TPCODL Total 2692946 5258.3 3939.17 25.1% 1898.54 1598.30 84.2% 36.93% 3.04

411. The Commission in the last few tariff orders expressed concern regarding high losses
at LT level. The losses though have reduced but very marginally and continue to be
quite high in many divisions. Consequently the ‘Realisation per LT input’ of these
divisions is dismally low and much lower than the Bulk supply price and Average cost
of supply. Almost all divisions have therefore been spending more on establishment
cost than the revenue realisation.

412. The Commission after undertaking the competitive bidding process for sale of
Distribution Companies as envisaged under Section 20 of the Electricity Act, 2003
have vested the three utilities i.e. CESU, WESCO and SOUTHCO to M/s Tata Power
Company Ltd. (TPCL). The respective vesting orders for these companies elaborately
deals with many performance parameters, loss reduction targets, capital expenditure,
recovery of past arrears, treatment of employee liabilities etc. The Commission has
also elaborated review of performance and commitments provided by the TPCL while
acquiring these utilities. The Commission has also set the terms for revocation of
license in addition to the provisions related to Revocation of License under Section 19
of the Act.

413. The Commission in view of the new dispensation in the distribution utilities and in
terms of the Vesting order believes that there will be significant improvement of the
functioning, consumer service, billing and collection efficiency and general health of
the new companies. The Commission have also approved enhanced expenses on
employee cost, repair and maintenance cost and A&G cost for the ensuing FY2021-22
in order to allow the new companies to plan and execute their actions on the all
required areas for improvement of the services.

Terminal Liability

414. All the DISCOMs have projected their terminal liability for the ensuing year. A

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 comparative position of the approved terminal liability in ARR of FY 2020-21 vis-a-
vis projection made by the DISCOMs for FY 2021-22 is given in the following table:

Table – 51
(Rs. Cr.)
Terminal Approved Proposed Percentage
Liability FY 2020-21 FY 2021-22 increase (in %)
TPWODL 141.47 132.31 -6.47%
NESCO Utility 152.06 129.38 -14.92%
TPSODL 134.90 144.89 7.41%
TPCODL 230.74 233.67 1.27%
Total 659.17 640.25 -2.87%

415. TPCODL has projected the terminal benefits (Pension, Gratuity and Unutilized Leave
on the cash flow basis.

416. TPWODL, NESCO Utility and TPSODL in their submission have stated that the
contribution to the Pension Fund and Gratuity Fund and Leave Encashment has been
proposed for the FY 2021-22 based on the actuarial valuation done by the Actuary
M/s. Bhudev Chatterjee as on 31.03.2020 and the projections provided for FY 2020-21
and FY 2021-22.

417. The Commission has been analysing the expected corpus fund available with the
DISCOMs taking into the provision allowed in the successive tariff orders of the
Commission. The expected corpus fund as per funds approved in the ARRs from FY
1999-00 onwards till FY 2020-21 is stated in the table given below:

Table - 52
(Rs. in Cr.)
TPWODL NESCO Utility TPSODL TPCODL
OB as on 01.04.99/ 70.77 68.00 67.39 138.56
Fund transfer from
GRIDCO to DISCOM
Allowed by the Commission
1999-00 6.71 5.62 7.78 0.00
2000-01 6.27 7.07 7.07 0.00
2001-02 7.92 7.00 6.63 6.09
2002-03 8.08 7.21 6.81 6.27
2003-04 8.96 7.56 7.57 6.90
2004-05 11.30 8.35 9.40 3.25
2005-06 12.06 8.92 10.03 3.51
2006-07 12.07 9.55 9.73 13.19
2007-08 16.36 15.30 13.97 18.28
2008-09 37.02 25.16 24.49 48.10
2009-10 37.04 27.19 20.53 49.68

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 TPWODL NESCO Utility TPSODL TPCODL
2010-11 51.81 51.13 58.22 75.84
2011-12 55.91 59.86 60.78 131.39
2012-13 66.13 67.88 68.81 149.84
2013-14 93.21 71.21 55.66 210.50
2014-15 95.38 96.53 77.73 122.89
2015-16 107.76 90.96 96.95 135.30
2016-17 73.16 87.06 61.46 135.24
2017-18 77.70 78.69 66.68 133.54
2018-19 82.72 84.63 74.60 151.09
2019-20 133.70 122.05 156.63 217.52
2020-21 141.47 152.06 134.90 230.74
Sub-Total 1142.74 1090.99 1036.43 1849.16
Grand Total 1213.51 1158.99 1103.82 1987.72

418. The DISCOMs were asked to submit the actual Corpus fund available up to 31st
March 2020. As per the submission by the DISCOMs the actual corpus fund available
is far less than what actually should have been by 31.03.2020. The following table
shows the actual corpus fund availability:

Table – 53
(Rs. in Cr.)
As on 31.3.2019 As on 31.3.2020
DISCOMs Pension Gratuity Total Pension Gratuity Total
Fund Fund Fund Fund
WESCO 219.22 40.66 259.88 215.72 35.40 251.12
NESCO 145.95 23.75 169.70 164.39 21.29 185.68
SOUTHCO 30.25 6.40 36.65 35.37 6.53 41.90
CESU 248.37 37.12 285.49 273.23 40.99 314.22

419. The Commission on analysis found that the actual corpus fund available is much less
than the expected and required corpus. The Commission in previous RST orders
observed that the Licensees have failed to transfer the amounts to corpus fund which
were allowed in the previous successive tariff orders for the purpose. Licensees have
also failed to submit any plan of action to recoup the corpus fund through enhanced
collection. Commission is therefore not inclined to allow the full amount of Terminal
liability projected and instead allow only the liability on the actual cash out go basis
for the ensuing year. The DISCOMs during the present ARR analysis were asked to
submit actual cash outgo on terminal liability for the current FY 2020-21 up to Nov
2020. On the basis of their submission the actual liability paid up to Nov 2020 was
extrapolated to full year of FY 2020-21 and then after prudence analysis by the

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 Commission, the expected terminal liability for FY 2021-22 is approved. In case of
TPCODL and TPSODL the initial proposal was analysed basing on the actual cash
outgo in the current year FY 2020-21 and it was found that they have higher
requirement for the ensuing year FY 2021-22 than actually projected in the ARR
petition. After prudence check TPCODL and TPSODL have been approved higher
amount than the proposed amount in the terminal benefit.

420. The details of proposed terminal liability and approval for FY 2021-22 are given in the
table below:

Table – 54
Terminal Liability (Approved)
(Rs. in Crore)
Terminal Liability Proposed Approved
FY 2021-22 FY 2021-22
TPWODL 132.31 165.68
NESCO Utility 129.38 129.38
TPSODL 144.89 150.02
TPCODL 233.67 214.81
Total 640.25 659.90

421. The DISCOMs implemented the recommendation of the 7th Pay Commission during
August 2018. The 7th Pay Commission envisages revision of pay and pension with
effect from January, 2016. The DISCOMs have projected for payment of the balance
50% of the arrears towards 7th Pay Commission recommendations during the ensuing
FY 2021-22. However, Government of Odisha is yet to notify the payment of arrears
towards 7th Pay Commission recommendation. In view of this, Commission is not
inclined to allow any amount on this account in the ARR for FY 2021-22. The
Commission further observes that as and when the notification on such aspect is
notified by Government of Odisha, which becomes due to the employees, the
DISCOMs will pay be same and project such expense in their subsequent truing up
petition which Commission will allow after prudence check.

422. In light of the discussions in the foregone paragraphs, the Employee cost proposed by
the DISCOMs vis-à-vis approval by the Commission for FY 2021-22 is shown in the
following table:

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 Table – 55
Employee Cost (Approved FY 2021-22)
(Rs. in Cr.)
Sl.
Particulars TPWODL NESCO Utility TPSODL TPCODL TOTAL
No
Proposed Approved Proposed Approved Proposed Approved Proposed Approved Proposed Approved
1 Basic Pay + GP 213.90 110.80 106.32 101.59 99.76 94.96 297.68 200.91 717.66 508.27
2 DA 55.61 32.13 28.71 29.46 27.93 27.54 74.44 58.26 186.69 147.40
3 Reimbursement of HR 19.25 15.61 19.14 14.50 16.79 13.53 42.54 30.94 97.72 74.57
4 Other allowance 3.01 3.01 2.62 2.62 1.95 1.95 6.05 6.05 13.63 13.63
Arrear of 7th Pay
5 commission of regular 38.32 0.00 29.73 0.00 30.94 0.00 77.50 0.00 176.49 0.00
employees
6 Bonus 0.30 0.30 0.00 0.00 0 0 0.70 0.70 1.00 1.00
Outsource and
7 contractual employee 50.81 53.92 35.29 45.70 83.83 83.83 52.10 54.68 222.03 238.13
cost
Additional employee
8 24.00 24.00 24.00 54.00 126.00
cost
Total Emoluments (1
9 381.20 239.78 221.81 217.87 261.20 245.81 551.01 405.55 1415.22 1109.01
to 8)
Med. Allowance/
10 Reimbu. of medical 10.70 4.43 5.32 4.02 4.99 3.89 10.63 8.00 31.64 20.34
expenses
Leave Travel
11 0.05 0.00 0.15 0.00 0.15 0 0.00 0.00 0.35 0.00
Concession
12 Honorarium 0.20 0.20 - 0.01 0.01 0.00 0.00 0.21 0.21
Payment under
13 workmen 0.25 0.25 0.09 0.09 0.29 0.29 0.58 0.58 1.21 1.21
compensation Act
Employees uniform
14 2.92 2.92 2.92 2.92
Expenses
15 Ex-gratia 0.30 0.30 2.23 2.23 0.00 2.53 2.53
16 Other Staff Costs 0.50 0.50 1.06 1.06 0.56 0.56 1.39 1.39 3.51 3.51
Total Other Staff
17 12.00 5.68 8.85 7.41 6.00 4.75 15.52 12.89 42.37 30.72
Costs (9 to 16)
Staff Welfare
18 1.00 1.00 2.74 2.74 4.18 4.18 1.45 1.45 9.37 9.37
Expenses
Terminal Benefits
(Pension + Gratuity +
19 132.31 165.68 129.38 129.38 144.89 150.02 233.67 214.81 640.25 659.90
Leave+ PF +
Commuted+NPS/CPS)
20 Total (9+ 17+18+19) 526.51 412.14 362.78 357.39 416.27 404.76 801.65 634.70 2107.21 1808.99
Less : Empl. cost
21 2.65 2.65 0.15 0.15 0.00 0.00 29.00 29.00 31.80 31.80
capitalized
Total Employees Cost
22 523.86 409.49 362.63 357.24 416.27 404.76 772.65 605.70 2075.41 1777.19
(2021-22)

423. It is directed that any rise in employee cost other than that approved shall require prior
approval of the Commission.

Administrative and General Expenses

424. The Administrative and General Expenses covers property related expenses, Licence
Fees to OERC, communication expenses, professional charges, conveyance and
travelling expenses, material related expenses and other expenses. The DISCOMs
have projected their estimates for FY 2021-22 in their ARR in the following manner
which are compared with approved A&G expenses for previous FY 2020-21.

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 Table - 56
(Rs. in Cr.)
A&G Expenses Approved 2020-21 Proposed FY 2021-22
Normal Additional Total Normal Additional Total
DISCOMs
A&G A&G A&G A&G A&G A&G
TPWODL 40.80 12.00 52.80 64.82 18.56 83.38
NESCO Utility 27.29 12.00 39.29 55.16 8.29 63.45
TPSODL 23.49 12.00 35.49 31.87 26.36 58.23
TPCODL 58.82 12.00 70.82 106.73 86.71 193.44

425. TPCODL has proposed enhance A&G expenses from the previous year approved cost.
In addition, TPCODL has projected Rs.193.44 crore for FY 2021-22. TPCODL in its
petition for additional A&G expenses has stated the following reasons:

i) Additional expenditure for meter reading and collection activities

 OPEX requirement for meter reading -In order to carry out the activity of
billing and collection covering customer base of 25 lakh on monthly basis,
expenditure of Rs.40.41 crore is considered with an average cost of Rs.10.35
per bill. In order to improve in billing and collection, deployment of more
meter readers and bill collectors in field and consequent rising costs. TPCODL
has also proposed increased supervision cost for an effective monitoring
system. TPCODL has proposed to have photo meter reading on site to improve
billing and to reduce consumer complaints. TPCODL has assumed expected
hike in minimum wage of 6% which will increase the cost of meter reading
rate from present Rs.6.50 to Rs.10.35 per meter reading.

 TPCODL has proposed an expenditure of Rs.39.16 crore to motivate customer

to make the payment at the counter office and other online mechanism. In
addition, they have projected to deploy women SHG for collection of money
from 5.80 lakh consumers with an expenditure of about Rs.7.84 crore. The
total requirement for both meter reading and collection activities will be
Rs.76.15 crore.

 TPCODL has proposed towards improving in technology for meter reading in

order to ensure hassle free billing and data analysis even for the cases of
defective and non-communication meters, CMRI data downloading and
manual reading from the site jobs. TPCL has stated that for existing AMR
modem, a SIM rental amount need to be spent monthly. For the improved

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 technology for meter reading, TPCODL has projected the total cost of Rs.4.32
crore.

 Towards meter testing, TPCODL has proposed that a sample testing for single
phase meter considering all makes of meter should be allowed to test. This will
help to assess the accuracy of the meters in the field and also help in customer
confidence about the accuracy of the meters. TPCODL has therefore proposed
Rs.6.06 crore towards OPEX requirement for doing the statutory meter testing.

426. TPCODL has submitted that since it is a new set up, they have to establish the
organisation with systems, infrastructure, administration that would require some time
and the expenditure in such areas would be high for some initial period after which it
would stabilize. In light of these facts, TPCODL has projected total A&G expenses of
Rs.86.71 crore.

427. TPWODL has projected enhanced A&G expenses for the ensuing year by considering
7% increase over the estimated A&G expenses for FY 2020-21 along with additional
expenses of Rs.18.30 crore. The total expenditure projected by TPWODL for FY
2021-22 is Rs.83.38 crore. TPWODL has submitted that additional expenses will be in
the area of intra-state ABT and energy audit. They have proposed to carry out
incentive audit by proper metering and technology. TPWODL has engaged 17 nos. of
external vigilance squads in all the 17 divisions to detect the pilferage of electricity.
TPWODL will continue with the real-time meter reading of 3 phase HT/EHT and LT
consumers with the help of EMR modems. The process of completion of modem
installation of consumers above 10 KW is almost complete. In HT consumers, 93%
and in case of 10 to 100 KW consumers, 89% of modems are installed (except OLIC
consumers). TPWODL is also carrying out the PAT (Perform Achieve Trade) Scheme
which is a market based trading scheme of Government of India. Besides this,
TPWODL is also engaged in Urja Mitra initiative, Strands of Performance audit,
IPDS/DDUGJY Phase-I metering scheme, IT automation etc.

428. TPSODL has projected A&G expenses for FY 2021-22 by considering 7% increase
over the estimated A&G expenses for FY 2020-21 along with additional expenses of
Rs.26.36 crore. The additional expenses have been projected mainly for vigilance and
anti-theft activities, IT automation, incentive for arrear collection, customer care
centre, energy audit, automated meter reading activities, electrical compensation

123
 expenses etc.

429. NESCO Utility has projected A&G expenses of Rs.63.45 crore for FY 2021-22 by
considering 7% increase over the estimated A&G expenses for FY 2020-21 including
additional expenses of Rs.8.29 crore. The additional expenses have been projected
mainly for energy audit, smart metering implementation, AMR installation and
management expenses, media campaign, IT automation and community participation
in rural power distribution system.

430. As per the OERC (Terms and conditions for Determination of Wheeling Tariff and
Retail Supply tariff) Regulations, 2014, Administrative & General (A&G) Expenses
would be allowed as follows:

“7.27 The A&G expenses for each subsequent year will be determined by escalating
the A&G expenses for the previous year at the escalation factor of 7% to
arrive at permissible A&G expenses for each year of the control period.
7.78 The Commission may, in addition to the normal A&G Expenses, actually
incurred during the previous year under this head for special measures to be
undertaken by the distribution licensees towards reduction of AT&C losses and
improving collection efficiency, provided the commission will undertake a
prudence check before allowing such expenditure.”
431. The Commission observes that A&G expenses are a controllable cost and the
DISCOMs would not be allowed more than the approvals in the truing up exercise.
The DISCOMs should make efforts to spend A&G expenses prudently and put efforts
to curb wasteful and avoidable expenses. In the present changed scenario, the
management of all the three DISCOMs (TPCODL, TPWODL& TPSODL) have been
handed over to the private entity through a competitive bidding process. For NESCO,
the process of handing over management to the new entity is undergoing and is likely
to be completed shortly. The new management in the DISCOMs have projected
enhanced A&G expenses which is more than the norms under the OERC (Tariff
Determination) Regulation. The Commission finds that the proposals for A&G
expenses in the petition relates to improving metering, billing and collection activities,
energy audit, AMR metering, implementation of PAT scheme, IT automation etc.

432. The Commission over the years in the ARR has been allowing A&G by escalating 7%
over the previous expenses. The Commission also allows additional expenses on
AT&C loss reduction activities, accident compensation, IT automation, training
programme, inspection fee etc. The Commission accordingly after prudence check
approves the A&G expenses for FY 2021-22 to all the four DISCOMS in the

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 following manner:

Table - 57
A & G Expenses Approved for FY TPWODL NESCO TPSODL TPCODL
2021-22 Utility
Normal A&G expenses (Escalated 43.66 29.20 25.13 62.94
@7% over FY 2020-21) (A)
Additional expenses:
Total Additional Expenses (B) 20.00 20.00 20.00 20.00
Total A&G expenses (A+B) 63.66 49.20 45.13 82.94
433. The Commission further observes that the DISCOMs shall make the expenditure in
A&G Expenses head in a prudent manner and achieve the objectives for which these
expenses are being made. The Commission will extensively check such expenses
made by the DISCOMs while allowing them in the Truing up. The higher expenses in
A&G shall also reflect in the reduction of AT&C losses and general improvement in
the customer services. The Commission will also take into account such parameters
while scrutinising A&G expenses.

Repair and Maintenance Expenses

434. The DISCOMs in their ARR and tariff petition for FY 2021-22 have proposed higher
requirement for R&M over the previous year’s approved expenses as follows:

Table – 58
R & M Proposal for FY 2021-22
(Rs. in Cr.)
R&M Approved for Proposed for % rise proposed over FY
Expenses FY 2020-21 FY 2021-22 2020-21 approved
TPWODL 92.24 109.53 18.74%
NESCO Utility 95.09 106.48 11.98%
TPSODL 45.96 86.81 88.88%
TPCODL 139.62 237.27 69.94%
TOTAL 372.91 540.09 44.83%

435. The Commission has been analyzing the spending in R&M by the Licensees, through
the information available in the audited accounts of the companies. Audited account
for the FY 2019-20 is available for all the DISCOMs. The approved and audited
figures under R&M expenses over the years are given in the following table:

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 Table – 59
R & M Expenses
(Rs. in Cr.)
R&M TPWODL NESCO Utility TPSODL TPCODL
Expenses
Years Approved Audited Approved Audited Approved Audited Approved Audited
99-00 14.43 15.90 14.22 16.19 12.63 13.39 19.05 24.01
00-01 14.43 10.25 14.22 11.02 12.63 7.31 19.57 19.92
01-02 13.62 10.12 16.32 7.02 15.57 9.29 23.43 15.6
02-03 15.33 8.04 14.62 5.65 16.82 6.43 22.11 25.04
03-04 16.89 16.27 17.59 8.84 16.38 9.93 24.12 21.22
04-05 17.28 12.85 17.66 11.13 13.25 8.43 31.95 20.27
05-06 21.30 9.61 22.63 11.21 18.55 6.07 33.67 12.26
06-07 24.25 12.44 24.48 12.88 17.35 5.54 41.31 22.09
07-08 23.82 12.37 24.43 13.00 18.38 5.50 43.64 25.11
08-09 25.66 17.90 25.87 20.86 19.08 7.79 41.87 34.79
09-10 27.01 18.01 27.88 22.79 20.73 11.59 40.46 28.45
10-11 34.77 16.56 37.22 19.26 26.11 13.09 51.19 29.38
11-12 36.81 18.04 47.46 16.39 28.47 8.28 56.77 28.92
12-13 40.06 14.71 51.17 17.52 28.28 8.97 57.78 27.12
13-14 51.30 19.73 56.73 16.16 43.53 15.02 81.87 52.55
14-15 64.28 17.74 84.92 19.90 39.19 12.02 116.78 33.14
15-16 44.24 17.71 61.05 27.70 31.93 16.82 79.64 33.85
16-17 55.55 19.37 70.54 18.62 33.18 9.74 92.43 45.52
17-18 68.48 18.40 87.97 13.77 34.91 6.74 110.85 26.52
18-19 64.28 17.36 84.92 17.02 39.19 6.78 116.78 23.10
19-20 86.33 12.57 89.48 15.66 44.00 4.59 134.63 31.01

436. The above table reveals that the trend of spending of DISCOMs in R&M activities is
much less than what is being approved by the Commission in the ARRs which is
mostly less than 50% of the amount approved by the Commission. Timely and
efficient R&M activities are the essential prerequisites to the viability of the
distribution network. Commission expects a better system through higher allocations
but the activities have to be monitored at field level.

437. As per the OERC (Terms and conditions for Determination of Wheeling Tariff and
Retail Supply tariff) Regulations, 2014, Repair and Maintenance expenses shall be
allowed as follows:

“7.29 Repair and Maintenance expenses would be allowed at the rate of 5.4% of
Gross Fixed Assets (GFA) only on the assets owned by the distribution
company for each year of the control period.
7.30 The licensee shall prepare a plan and budget for periodic preventive
maintenance of distribution network including emergency repairs and
restoration works under each division.
7.31 The Commission may provisionally allow an amount for maintenance of assets

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 added under RGGVY, BGJY programme etc.. The licensee is required to
submit to the commission along with ARR the details of assets taken into
service under these programmes.
7.32 The commission may also allow special R&M actually incurred during the
previous year, in order to enable DISCOMs to undertake critical activities
such as loss reduction, energy audit, consumer indexing, pole scheduling etc.
provided the commission will undertake a prudence check before allowing
such expenditure.”
438. In order to calculate Repair and Maintenance allocation, which is a percentage of fixed
assets, the commission analyses the fixed assets of the DISCOMs and subsequent
additions during the year. In the tariff submission for FY 2021-22 the DISCOMs have
proposed capital expenditure and addition of fixed assets scheme wise for FY 2020-21
which is shown in the following table.

Table – 60
Proposed addition of Fixed Assets FY 2020-21
(Rs. in Cr.)
Proposed Capital TPWODL NESCO Utility TPSODL TPCODL
expenditure and
addition of Fixed
Assets for FY
2020-21
Capital Capital Capital Capital
Addition Addition Addition Addition
Exp. Exp. Exp. Exp.
Land Building
Furniture and 1.40 1.76 0.96 0.96 3.60 3.60
Fixtures
RAPDRP 269.83
APDRP 0 0.55
RE/MNP 0 1.89
S.I. Scheme 3.89 12.14
Deposit work 76.10 71.85 135.72 65.94 11.26 6.76 182.96
DDUGJY 71.90 21.57
DDUGJY (12th
14.96 5.98
Plan)
PMU 7.72
Biju Gram Jyoti 7.00 3.50
Biju Sahar VY 2.01 1.00
SOUBHAGYA 28.31 60.20 63.28 110.36 187.57 199.15 155.04
DESI (GoO) 54.59
RLTAP 12.00 6.00 3.70 3.70
Capex Plan (GoO) 9.49 36.48 1.39 186.98 30.18 72.40 45.29
IPDS 19.40 7.76 254.89 127.45
ODSSP 25.79 25.79 557.44 499.20
NH 1.12 0.72
Elephant corridor 16.00 8.73
Other works 3.67 1.84 62.23 61.05 304.37 228.33
Total 266.91 251.37 210.36 423.33 1127.99 992.92 304.37 881.45

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 439. The Commission analysed the proposed CAPEX and the proposed addition to the
fixed assets. The scheme wise asset addition already made till date and the assets
which are likely to be added within the FY 2020-21 is considered by the Commission
after prudence check. The assets owned by Government of India and Government of
Odisha schemes which are not handed over to DISCOMs have not been considered as
addition to fixed assets. Accordingly the approved addition of fixed assets during FY
2020-21 is given in the following table.

Table – 61
(Rs. in Cr.)
Approved addition of NESCO
TPWODL TPSODL TPCODL
Fixed Assets FY 2020-21 Utility
SOUBHAGYA 40.00 63.29 100.00 100
S.I. Scheme 1.00
Deposit work 12.00 50.00 182.96
Capex Plan (GoO) 100.00 1.39 35.18 45.29
Elephant corridor 10.20
Other works 9.01 12.00 46.01
Total 153.00 123.69 157.38 374.26

440. The Gross Fixed Assets as on 01.04.2021 has been computed based on the audited
accounts for 2019-20 and the approved addition for the FY 2020-21.

441. The R&M for FY 2021-22 is calculated as the 5.4% of the GFA as on 1.04.2021 in
terms of the OERC Tariff Determination Regulation 2014. The Commission in order
to ensure maintenance of the assets under RGGVY, DDUGVY & Biju Gram Jyoti
Scheme, which continue to be with the Govt. of Odisha, also allows Rs.5.00 crore to
each DISCOMs subject to detailed scrutiny in next tariff proceedings. The approved
R&M for FY 2021-22 is accordingly shown in the following table:

Table – 62
R&M Approved for FY 2021-22
(Rs. in Cr.)
R&M for FY TPWODL NESCO Utility TPSODL TPCODL
2021-22 Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Gross fixed asset
2028.35 1930.00 1971.84 2022.76 1436.42 932.67 4130.97 3665.60
as on 01.04.2021
% of GFA 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40% 5.40%
R&M on GFA 109.53 104.22 106.48 109.23 77.57 50.36 223.07 197.94
Special R&M for
addition of
0 5.00 0 5.00 9.24 5.00 14.20 5.00
RGGVY/DDUGJY
and BJGY assets
Total R & M incl
109.53 109.22 106.48 114.23 86.81 55.36 237.27 202.94
Spl R & M

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 Interest on Loan

442. The source-wise loans and interest burden as proposed by the four DISCOMs for FY
2021-22 is given in the following table:

Table – 63
(Rs. in Cr.)
NESCO
Source TPWODL TPSODL TPCODL
Utility
Long Term Debt 28.13
World Bank loan 11.82 11.87 9.44
Gridco New Loan 12.45
APDRP Net of 50% grant (GoO) 0.66 0.76 0.80
SI Scheme 0 0 0.08
Interest on security deposit 44.21 34.03 15.87 58.25
Govt. of Orissa Capex loan 2.32 1.73 1.92
SOD interest and finance charges-
25.19 25.69 9.98 41.87
Int. on Working Capital
Total interest before capitalization 84.20 74.08 50.54 128.25
Less: Interest Capitalized 0 0 0 0
Total Interest proposed 84.20 74.08 50.54 128.25

443. The Commission analysed the interest on loans proposed by the DISCOMS in the
ARR petition. The Commission in the respective vesting orders have observed that the
Section 21(a) of the Electricity Act provides that the utility shall vest in the purchaser
or the intending purchaser, as the case may be, free from any debt, mortgage or similar
obligation of the licensee or attaching to the utility. The Commission has accordingly
carved out the new opening balance sheet and the old loans along with the interest on
that are not passed on to the new operating companies. Hence the Commission have
not considered the interest on the existing loans while determining the ARR in this
order.

Interest on Security Deposit

444. The Commission in its query asked DISCOMs to furnish the details of the investments
made out of the Consumer’s security deposits. Accordingly DISCOMs furnished the
details which has been tabulated as below:

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 Table - 64
Security Deposit
Licensee Security Security Remarks
Deposit as on Deposit
31.03.2020 as physically
per audited available as
balance sheet on 31.03.2020
TPWODL Rs.770.91cr. Rs.773.65 cr. Rs. 390.71 cr. is pledged in banks for availing
loan towards payment of BST bills and salary.
Balance of Rs.382.94 cr. is free from any lien.
NESCO Rs.605.11cr. Rs. 589.20 cr. Rs. 392.87 cr. is pledged in banks for availing
Utility loan towards payment of BST bills and salary.
Balance of Rs.196.33 cr. is free from any lien.
TPSODL Rs.256.11cr Rs. 153.54 cr. Rs. 68.16 cr. is pledged in SBI for availing loan
towards payment of BST bills and salary.
Balance of Rs.85.38 cr. is free from any lien.
TPCODL Rs.732.16cr. Rs.345.40 cr. Rs. 311.54 cr. is pledged in UBI for availing
loan towards payment of BST bills and salary.
Balance of Rs.33.86 cr. is free from any lien.

445. In view of the large gap as per audited accounts and physical availability, we direct the
DISCOMs to have a comprehensive audit of the Security Deposit and get the figures
reconciled. Commission therefore directs the DISCOMs to maintain the security
deposit intact so as to meet this liability. Commission further directs the DISCOMs to
recoup the deficit of the security deposit through enhanced collection.

446. The Interest on security deposit is allowed by the Commission as per the OERC
Distribution (Conditions of Supply Code), 2004. The prevailing bank rate during
February, 2021 as notified by RBI is 4.25% per annum as ascertained from the RBI
website. The Commission accordingly allows the interest at the rate of 4.25% on the
closing balance on consumer’s security deposit as on 31.3.2021 as shown in the table
below:

Table - 65
Interest on Security Deposit approved (2021-22)
(Rs. in Cr.)
Interest on Proposed Consumer's Approved interest
Consumer's interest on Security deposit as on Consumer's SD
Security Deposit Consumer's SD on 31.03.2021 @ 4.25% for FY
for FY 2021-22 (Proposed) 2021-22
TPWODL 44.21 808.64 34.37
NESCO Utility 34.03 630.11 26.78
TPSODL 15.87 272.89 11.60
TPCODL 58.25 787.10 33.45

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 447. Accordingly the total interest on loan proposed by DISCOMs and approved by the
Commission for FY 2021-22 is summarized below:

Table - 66
Total Annual Interest approved
(Rs. in Cr.)
TPWODL NESCO Utility TPSODL TPCODL
Interest on Loans of
Proposed Approved Proposed Approved Proposed Approved Proposed Approved
DISCOMs
2021-22 2021-22 2021-22 2021-22 2021-22 2021-22 2021-22 2021-22
Long Term Debt 28.13
World Bank loan 11.82 11.87 9.44
Gridco New Loan 12.45
APDRP Net of
0.66 0.76 0.80
50% grant (GoO)
SI Scheme - - 0.08
Interest on
44.21 34.37 34.03 26.78 15.87 11.60 58.25 33.45
security deposit
Gov of Orissa
2.32 1.73 1.92
Capex Loan
SOD interest and
25.19 25.69 9.98 - 41.87 -
finance charges
Total interest
chargeable to 84.20 34.37 74.08 26.78 50.54 11.60 128.25 33.45
revenue

Financing costs of short term loans/cash credits for working capital

448. As per the OERC (Terms and conditions for Determination of Wheeling Tariff and
Retail Supply tariff) Regulations, 2014, Interest on Working capital shall be allowed
as follows:

“7.49 Interest on Working Capital: Working capital shall include –

(a) Operation and maintenance expenses for one month;
(b) Receivables for one month;
(c) Maintenance spares @ 40% of R&M expenses for one month.
7.50 The rate of interest for working capital shall be equal to the SBI Base Rate plus
300 basis points as on 1st January of the preceding year for which tariff is determined:
Provided that the commission while determining the working capital requirement,
shall take into account the outstanding receivables with the consumers as per the
annual audited accounts of the licensees, and may direct the licensee to fund the
requirement of working capital by collection from the outstanding receivables.
449. TPCODL in its petition has proposed Interest on working capital to the tune of Rs.
41.87 crore for FY 2021-22. TPCODL has also submitted that they are eligible to take
extra working capital due shortfall in the collection due to Covid-19 situation.

450. In the previous tariff orders the Commission in this regard have observed that all the

131
 DISCOMs have huge outstanding receivables from the consumers the commission
accordingly directed the Licensees to fund the requirement of working capital by
collection from the outstanding receivables. However in the present scenario where
new investors have taken over the existing utilities they have proposed to take working
capital loan for carrying out various obligations as envisaged in the said Regulations.
The Commission will analyse such requirement at the appropriate stage during the
truing up. Accordingly the Commission has not approved any interest on working
capital loan while determining the ARR for FY2021-22.

Depreciation

451. DISCOMs have calculated depreciation at Pre-92 rate on the asset base for FY 2021-
22. The depreciation amounts claimed by the four DISCOMs are given as under.

Table – 67
(Rs. in Cr.)
TPWODL NESCO Utility TPSODL TPCODL
Proposed 72.89 71.16 55.90 107.40

452. Hon’ble High Court of Orissa in their judgement dated 28.02.2003 and 14.03.2003 in
Misc Case No. 7410 and 8953 of 2002 have directed to calculate the depreciation on
the pre-up valued cost of assets at pre-92 rate on the Transmission and Distribution
assets as on 01.4.96 apportioned amongst GRIDCO and DISCOMs. Regarding
calculation of depreciation, the Commission observed following in the RST order for
FY 2009-10:

“388. The Commission has extensively dealt with the matter of calculation of
depreciation in successive tariff orders and in the last tariff order for FY 2008-
09 (Para 399 to 406) considering the book value of the fixed asset as on
01.4.1996 at the pre-up valued cost and subsequent asset additions thereof in
later years. The Commission adopts the same principle for determination of
depreciation for FY 2009-10.”
453. The asset addition from 01.4.1999 has been based on the audited annual accounts of
the DISCOMs.

454. The depreciation is calculated on the approved asset base as on 1.04.2021 at Pre–92
rate in pursuance to the directive of the Hon’ble High Court. The gross block of assets
has been taken from the audited accounts of the DISCOMS as on 31.03.2020 and the
approved additions for the FY 2020-21. The portion of depreciation on assets created
out of grants & subsidy/ service line contribution (audited for FY 2019-20) is deducted

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 from the gross depreciation amount for the purpose of ARR.

455. The table of detailed calculation of depreciation of DISCOMS are given below:

Table –68
Gross Fixed Assets As on Approved GFA Pre – 92 Depreciation
TPWODL 01.04.2020 Addition FY approved FY Rate FY 2021-22
(Audited) 2020-21 2021-22
Land 1.77 0 1.77 0% 0.00
Buildings 15.94 0 15.94 1.80% 0.29
Plant & machinery 1750.11 153.00 1903.11 3.80% 72.32
Vehicles 0.48 0 0.48 12.86% 0.06
Furniture & Fixtures 1.97 0 1.97 4.55% 0.09
Office Equipment 6.73 0 6.73 9.00% 0.61
Total 1777.00 153.00 1930.00 73.36
Less: Dep. Of assets created out of grants & subsidy/ service line contribution 37.02
(audited 2019-20)
Net depreciation approved 36.34

Table –69
Gross Fixed As on Approved GFA Pre – 92 Depreciation
Assets NESCO 01.04.2020 Addition FY approved Rate FY 2021-22
(Audited) 2020-21 FY 2021-22
Land 1.72 0 1.72 0% 0.00
Buildings 5.50 5.50 1.80% 0.10
Plant & machinery 1883.31 123.69 2007 3.80% 76.27
Vehicles 0.44 0.44 12.86% 0.06
Furniture &
Fixtures 2.23 2.23 4.55% 0.10
Office Equipment 5.87 5.87 9.00% 0.53
Total 1899.07 123.69 2022.76 77.05
Less: Dep. Of assets created out of grants & subsidy/ service line 44.19
contribution ( audited 2019-20)
Net depreciation approved 32.86

Table – 70
Gross Fixed Assets As on Approved GFA Pre – 92 Depreciation
TPSODL 01.04.2020 Addition approved Rate FY 2021-22
(Audited) FY 2020-21 FY 2021-22
Land 2.06 2.06 0% 0.00
Buildings 5.98 5.98 1.80% 0.11
Plant & machinery 758.51 157.38 915.89 3.80% 34.80
Vehicles 1.28 1.28 12.86% 0.16
Furniture & Fixtures 2.12 2.12 4.55% 0.10
Office Equipment 5.34 5.34 9.00% 0.48
Total 775.29 157.38 932.67 35.65
Less: Dep. Of assets created out of grants & subsidy/ service line contribution
( audited 2019-20) 14.18
Net depreciation approved 21.47

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 Table -71
Gross Fixed Assets As on Approved GFA Pre - Depreciation
TPCODL 01.04.2020 Addition approved 92 FY 2021-22
(Audited) FY 2020-21 FY 2021-22 Rate
Land 7.70 7.7 0% 0.00
Buildings 23.47 23.47 1.80% 0.42
Plant & machinery 3245.97 374.26 3620.23 3.80% 137.57
Vehicles 0.60 0.6 12.86% 0.08
Furniture & Fixtures 3.47 3.47 4.55% 0.16
Office Equipment 10.13 10.13 9.00% 0.91
Total 3291.34 374.26 3665.60 139.14
Less: Dep. of assets created out of grants & subsidy/ service line
contribution ( audited 2019-20) 95.57
Net depreciation approved 43.57
456. Accordingly, the Commission approves the following amount towards depreciation for
the FY 2021-22.

Table – 72
(Rs. Cr.)
TPWODL NESCO Utility TPSODL TPCODL
Proposed 72.89 71.16 55.90 107.40
Approved 36.34 32.86 21.47 43.57

Manner of utilization of depreciation:

457. As per the respective vesting orders, the Commission, with regard to depreciation on
assets transferred to the operating companies, have observed that all existing assets
would continue to earn depreciation as per existing depreciation rates approved by the
Commission. Since the depreciation relates to existing assets, against which no loan
has been availed by the new operating company, the depreciation allowed to be
recovered from tariff must be utilized in the following manner:

a) For funding of additional service liabilities

b) Capital investment

c) Working capital requirement

The Commission have further observed that the manner of utilization of such
depreciation shall be as per the direction of the Commission and the operating
company shall maintain a separate account for such depreciation. No depreciation
shall be allowed to be recovered on assets created out of Government grants/capital
subsidy/capital contribution from consumers.

The Commission in light of these facts directs that the depreciation shall be used only

134
 for the purpose as stipulated in the respective vesting order.

Provision for Bad & doubtful debts

458. The TPWODL, NESCO Utility, TPSODL and TPCODL have proposed Bad and
doubtful debts for the ARR for FY 2021-22 which is shown in the table below:

Table – 73
(Rs. cr)
Bad & Doubtful Debt TPWODL NESCO TPSODL TPCODL
FY2021-22 (Proposed) Utility
Proposed revenue billed 3187.81 2,677.46 1372.94 3640.12
Proposed Bad and
90.62 81.85 29.40 35.32
Doubtful debt

459. The OERC Tariff determination Regulation, 2014 at Regulation 7.55 provides for the
Bad debts in the following manner:

The commission shall allow a provision for bad debts as a prudent commercial
practice in the revenue requirement of the licensee. This provision for bad debts will
be established as percentage of sales revenue as determined by the Commission from
time to time. Before establishing a provision for bad debts, the commission may direct
the licensee to audit the receivables so that there will be no financial burden on
genuine consumers due to inappropriate provision..
460. Therefore according to the above provisions of the Regulation the Commission is
required to establish a percentage of the sales as Bad debt. The Commission in the
previous RST orders have approved Bad and Doubtful debts according to its Order
dated 20.3.2013 on MYT principles which set out principle for allowing bad and
doubtful debt in the following manner:

“17. The Business Plan order of the Commission dated 20.03.2010 approved
collection efficiency of 99% for FY 2011-12 and FY 2012-13. The benchmark of
collection efficiency would continue to be at the level of 99% during the third
control period also. Accordingly the Bad and Doubtful debt during the third
control period would also be allowed @ 1% of the total annual revenue billing
in HT and LT sales only.”
461. The Commission in line with the above Order on MYT principles allowed Bad and
Doubtful debt of 1% of the total annual revenue billing in HT and LT sales only on
normative basis. Hence the amount of Bad and doubtful debt as proposed by the
DISCOMs and approved by the Commission for FY 2021-22 is summarized below.
Commission directs that the procedure for classification of an amount under bad and
doubtful debt have to be in place prior to implementation.

135
 Table – 74
Bad & Doubtful Debt FY 2021-22 (Approved)
(Rs. in Crore)
Bad &
Proposed Approved
Doubtful Debt
Revenue
Bad debt
Total from Revenue Revenue
DISCOM Revenue Bad debt (1% of LT &
Revenue EHT at HT at LT
HT revenue)
sales
TPWODL 3187.81 90.62 3,705.76 964.14 1204.75 1536.87 27.42
NESCO Utility 2677.46 81.85 2,545.61 1061.94 259.87 1223.80 14.84
TPSODL 1372.94 29.40 1,522.73 301.38 142.05 1079.30 12.21
TPCODL 3640.12 35.32 3,835.58 630.44 851.80 2353.34 32.05

Truing up of DISCOMs

462. The OERC (Terms & Conditions for Determination of Wheeling Tariff and Retail
Supply Tariff) Regulations, 2014 at Regulation 8 provides for the procedure for
Truing up. Reg.8.1 provides that “The Distribution Licensee shall file an application
each year for Truing up separately by 1st week of October every year along with the
audited accounts of the relevant year. The Commission shall pass the Truing up order
by 1st week of November. The Licensee shall duly consider the Truing up order up to
the previous financial year while filing ARR for the ensuing year.”

463. The licensees have not filed any truing up application within the scheduled time
therefore, no Truing up is allowed for ensuing year ARR for FY 2021-22.

Return on Equity

464. TPCODL in its petition has projected RoE of Rs.73.48 crore basing on the opening
equity of Rs.368.51 crore with subsequent equity addition of Rs.181.48 crore (towards
capitalization to the tune of Rs.604.95 crore). NESCO Utility, TPWODL and
TPSODL have projected RoE of Rs.10.54 crore, Rs.7.78 crore and Rs.6.03 crore
respectively as per the earlier order of the Commission. TPWODL, NESCO Utility
and TPSODL in their ARR filing have submitted that due to negative returns( gaps) in
their ARR and carry forward of huge Regulatory Assets in previous years, the
Licensee could not avail the RoE over the years, which otherwise would have been
invested in the company for improvement of the infrastructure. They have further
submitted that the RoE to be allowed on the amount of the equity and the accrued RoE
for the previous years.

465. The Commission has considered allowing the RoE as per the OERC (Determination of

136
 Wheeling and Retail Tariff) Regulation, 2014. The said Regulation states that the RoE
shall be allowed @16% on the amount of equity capital determined in accordance with
Regulation. The Commission while vesting the utilities of CESU, WESCO and
SOUTHCO in TPCODL, TPWODL and TPSODL respectively have approved
relaxation of conditions related to RoE in the Regulation. The Commission in the
respective Vesting order have provided that it should allow to the new companies RoE
on the equity capital which was the reserve price of the utility as specified in the RFP.
The Commission further observed that RoE on the reserve price is assured in order to
encourage investor participation by providing certainty on returns. The reserve price in
case of TPCODL is Rs.300 crores, in case of TPWODL it is Rs.300 crores and in case
of TPSODL it is Rs.200 crores. In light of the provisions of the vesting order, the
Commission allows RoE to TPCODL, TPWODL and TPSODL equivalent to the
reserve price given in the respective RFP. In the case of NESCO utility, the sale
process is about to culminate pending issuance of the vesting order and keeping such a
fact in mind the Commission has considered the reserve price given in the RFP for
determination of RoE. As regards the submission of TPCODL with regard to the
equity addition due to Capex, the Commission is of the opinion that since the Capex
have not been added as of now, no such equity additions are considered in the present
ARR. As and when the capitalization happens in the particular year, this will be
considered in the truing up exercise to be passed on in the subsequent ARR.

Table - 75
(Rs. in cr.)
Particulars TPWODL NESCO Utility TPSODL TPCODL
Amount proposed by DISCOMs 7.78 10.55 6.03 73.48
Amount approved by the Commission 48.00 40.00 32.00 48.00
Miscellaneous receipts

466. The miscellaneous receipts proposed by the licensees for the FY 2021-22 against the
approved for FY 2010-21 are given in the table below:

Table -76
Miscellaneous Receipts
(Rs. in cr.)
Particulars TPWODL NESCO Utility TPSODL TPCODL
Amount approved for FY 2020-21 191.39 135.66 39.77 178.98
Amount proposed for FY 2021-22 192.25 85.31 18.09 109.56

467. The miscellaneous receipt of the DISCOMS is mainly on account of meter rent,

137
 commission for collection of ED, miscellaneous charges, interest on loans and
advances, interest on bank deposit, DPS, over drawl penalty, supervision charges and
Reliability surcharge, open access charges, and other miscellaneous receipts. It is
observed from the audited accounts that the actual miscellaneous receipts of
DISCOMs is much more than the proposed receipts in the ARR. The audited accounts
of DISCOMs are available up to the year 2019-20.

468. Commission observes that the receipts under miscellaneous receipts are of fluctuating
nature and the reasonable estimate of future receipts would be on the basis of the
analysis of actual past trends. The Commission after scrutiny and analysis, allows the
miscellaneous receipt on the basis of average receipt of two years (FY 2018-19 and
2019-20) after deducting meter rent, DPS & OD penalty and reliability surcharge etc.
In case of TPWODL it is observed from the audited accounts of FY 2018-19 and FY
2019-20 that they have received substantial amount towards Cross Subsidy/ Open
Access Charges. It is analysed that such receipts are of uncertain nature and varies
substantially on year to year basis. Accordingly half of Cross Subsidy/ Open Access
Charges is deducted from the miscellaneous receipts along with other deductions such
as meter rent, DPS & OD penalty and reliability surcharge while determining ARR of
the WESCO. The approved miscellaneous receipts for FY 2021-22 is shown in the
following table:

Table - 77
(Rs. in cr.)
TPWODL NESCO TPSODL TPCODL
Amount proposed for FY 2021-22 192.25 85.31 18.09 109.56
Amount approved for FY 2021-22 237.45 137.42 25.56 104.80

Receivables from DISCOMs and Others

Securitized Dues
469. GRIDCO in its filing submitted that it has outstanding dues to be received from
DISCOMs towards securitized dues, NTPC Bond dues, Non-payment of BSP dues and
Year End Adjustment Bills of DISCOMs. The Commission after undertaking the
competitive bidding process for sale of Distribution Companies as envisaged under
Section 20 of the Electricity Act, 2003 have now handed over the three utilities i.e.
CESU, WESCO and SOUTHCO to M/s Tata Power Company Ltd. (TPCL) who
acquired 51% of equity share in the new companies. Government of Odisha through
it’s entity GRIDCO hold 49% equity share in the new companies. The utility of CESU

138
 was vested in a new company, TPCODL on 01.06.2020 in terms of the vesting order
No.11/2020 dated 26.05.2020, WESCO was vested on 01.01.2021 in the new
company TPWODL in terms of the vesting order No.82/2020 dated 28.12.2020 and
SOUTHCO was vested in the new company TPSODL on 01.01.2021 in terms of the
vesting order No.83/2020 dated 28.12.2020. The respective vesting orders for these
companies’ deals with the segregation of the balance sheet as on the date of vesting by
transfer of assets and liabilities to the new company. In the case of NESCO utility, the
sale process is about to culminate pending issuance of the vesting order and the
Balance sheet will be segregated on the same lines. Accordingly all the outstanding
dues of the GRIDCO will be dealt as per the provisions of the respective vesting order.

Revenue Requirement
470. In the light of above discussion, the Commission approves the revenue requirement of
FY 2021-22 of four DISCOMs, as shown in Annexure-A.

471. A summary of the approved revenue requirement, expected revenue at the approved
tariff and approved revenue gap for FY 2021-22 by the Commission is given below:

Table - 78
(Rs. in Cr.)
Revenue Requirement Expected Revenue
Gap (-)/Surplus(+)
DISCOM FY 2021-22 FY 2021-22
Proposed Approved Proposed Approved Proposed Approved
TPWODL 3326.81 3631.52 3148.97 3705.75 -177.84 74.23
NESCO
2860.44 2544.97 2623.18 2545.61 -237.26 0.64
Utility
TPSODL 1539.60 1521.20 1391.90 1522.73 -147.70 1.53
TPCODL 4313.93 3834.65 3595.48 3835.58 -718.45 0.93
Total 12040.78 11532.34 10759.53 11609.67 -1281.25 77.33

Segregation of wheeling and retail supply business

472. OERC (Terms and Conditions for Determination of Wheeling Tariff & Retail Supply
Tariff) Regulations, 2014 at Reg. 3.1 mandates that “In accordance with the principles
laid out in these Regulations, the Commission shall determine the tariff for : (a)
wheeling of electricity, i.e. Wheeling Tariff, (b) Retail sale of electricity i.e., Retail
Supply Tariff”. Further, Regulation 3.2 provides that the Commission shall determine
the Aggregate Revenue Requirement (ARR) and Tariff for (a) Wheeling Business and
(b) Retail Supply Business. The Regulation 4.3 further provides that “the distribution
licensee shall segregate the accounts of the licensed business into wheeling business
and retail supply business.

139
473. The proviso to the Regulation 4.4 states that “provided that for such period until
accounts are segregated, the licensee shall prepare an allocation statement to apportion
cost and revenues to wheeling business and retail supply business and submit it along
with its ARR for approval of the Commission.

The DISCOMs in their ARR submissions have proposed allocation statement of

wheeling and retail supply cost.
Table - 79
Allocation of Wheeling and Retail Supply Cost
Sl. Cost/Income Component Ratio for Ratio for
No. consideration in consideration in
Wheeling Retail Supply
Business Business
1 Cost of Power 0% 100%
2 Transmission Charges 0% 100%
3 SLDC Charges 0% 100%
Total power purchase cost *
O&M
4 Employee Cost 60% 40%
5 Repair & Maintenance Cost 90% 10%
6 Administrative & General Expenses 40% 60%
7 Bad & Doubtful Debt including Rebate 0% 100%
8 Depreciation 90% 10%
Interest on Loans
9 for Capital loan 90% 10%
10 for Working capital 10% 90%
11 Interest on Security Deposits 0% 100%
12 Return on Equity 90% 10%
Special Appropriation
13 Amortization of Regulator Assets 25% 75%
14 True Up of Current year GAP 1/3rd 25% 75%
15 Other, if any-Contingency Reserve 90% 10%
Grand Total
Miscellaneous Receipt
16 Non-Tariff Income - Wheeling as per as per actual/
actual/assumption assumption
17 Non-Tariff Income - Retail Business as per actual/ as per actual/
assumption assumption
474. The distribution licensees are yet to segregate the accounts of their licensed business
into wheeling and retail supply business as provided in the OERC (Terms and
Conditions for Determination of Wheeling Tariff & Retail Supply Tariff) Regulations,
2014. The Commission therefore, based on the above uniform allocation matrix allows
cost towards Retail Supply business and Wheeling business in the following manner.
The Commission shall monitor this later.

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 Wheeling Business

475. As per the OERC Tariff Regulation “Wheeling Business” means the business of
operating and maintaining a distribution system for conveyance of electricity in the
area of supply of Distribution Licensee. As such the apportioned cost towards
wheeling business has been considered while determining Aggregate Revenue
Requirement and wheeling charges. The Miscellaneous receipts for the wheeling
business, receipts on account of wheeling charges from open access consumers,
supervision charges and Service line rentals are considered out of the total approved
Miscellaneous receipts in this order from the Annual accounts. However, such
segregation is not available in the audited accounts of the DISCOMs for the FY 2019-
20. Therefore, in order to arrive at the segregated Miscellaneous receipts for FY 2021-
22 the approved proportion of the wheeling and retail business of FY 2019-20 is
applied. This has been shown in the following table:

Table - 80
Miscellaneous Receipts
(Rs. Cr.)
WESCO NESCO SOUTHCO TPCODL
Total Miscellaneous Receipts Approved for
173.99 123.33 36.15 162.71
FY 2019-20
Approved Miscellaneous Receipt for
15.32 7.08 1.14 22.33
Wheeling Business- FY 2019-20
Approved %age of wheeling business for
8.81% 5.74% 3.15% 13.72%
FY 2019-20
Total Miscellaneous Receipts Approved for
237.45 25.56
FY 2021-22 137.42 104.80
Approved Miscellaneous Receipt for FY
2021-22 Wheeling Business applying same 20.91 7.89 0.81 14.38
percentage as in FY 2020-21
Approved Miscellaneous Receipt for FY
216.54 129.53 24.76 90.41
2021-22 Retail Business

476. On the basis of the aforesaid Allocation of Wheeling and Retail Supply Cost matrix
table, the ARR for wheeling business for TPWODL, NESCO Utility, TPSODL and
TPCODL is approved at Rs.379.29 cr, Rs. 382.45 cr, Rs. 318.96 cr and Rs. 616.99
respectively. The wheeling charges (per unit) for TPWODL, NESCO Utility,
TPSODL and for TPCODL have been accordingly determined at 57.91 paise/unit,
87.35 p/u, 89.05 p/u and 72.31 p/u. The details of the Wheeling Business cost
allocation and determination of wheeling charges is shown in the following table:

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 Table - 81
Allocation of cost towards Wheeling Business – FY 2021-22
(Rs. in Crs.)
Ratio out
of Total TPWODL NESCO Utility TPSODL TPCODL TOTAL
approval
Approved Approved Approved Approved Approved Approved Approved Approved Approved Approved
Expenditure (%)
Total Wheeling Total Wheeling Total Wheeling Total Wheeling Total Wheeling
Employee costs 60 361.02 216.61 348.84 209.31 370.88 222.53 606.75 364.05 1,687.49 1012.50
Repair &
90 92.24 83.02 95.09 85.58 45.96 41.37 139.62 125.66 372.92 335.63
Maintenance
A & G Expenses 40 52.80 21.12 39.29 15.71 35.49 14.19 70.82 28.33 198.39 79.36
Depreciation 90 61.40 55.26 63.58 57.22 29.03 26.13 94.56 85.10 248.58 223.72
Interest on capital
Loan (Excluding 90 14.58 13.12 14.36 12.93 11.75 10.57 31.04 27.93 71.73 64.55
SD)
Return on equity 90 7.78 7.00 10.54 9.49 6.03 5.43 11.64 10.48 35.99 32.39
Gross Total 589.83 396.14 571.71 390.24 499.13 320.21 954.43 641.55 2615.09 1748.14
Less:
Miscellaneous 16.85 7.79 1.25 24.56 50.46
receipts
Less: Expenses
0.00 0.00 0.00
capitalised
Total wheeling
379.29 382.45 318.96 616.99 1697.69
Cost
Total MU
approved for LT & 6550.00 4378.56 3586.11 8532.17 23046.84
HT consumers
Wheeling charges
57.91 87.35 88.94 72.31 73.66
(P/U)

Retail Supply Business

477. As per the OERC Tariff Regulation “Retail Supply Business” means the business of
sale of electricity by Distribution Licensee to the category of consumers within its area
of supply in accordance with the terms of the Licence for distribution of electricity.
The apportioned cost towards Retail Supply business has been considered while
determining Aggregate Revenue Requirement. While considering the Miscellaneous
receipts for the retail business, receipts on account of wheeling charges from open
access consumers, supervision charges and Service line rentals have been excluded
from the total approved Miscellaneous receipts. This has been shown in the given
table:

Table - 82
Miscellaneous Receipts- Retail Supply Business 2021-22 (Approved)
(Rs. in cr.)
TPWODL NESCO Utility TPSODL TPCODL
Approved Miscellaneous Receipt for
216.54 129.53 24.76 90.41
FY 2021-22 Retail Business

478. On the basis of the aforesaid allocation of Wheeling and Retail Supply cost matrix
table, the net retail supply cost for TPWODL, NESCO Utility, TPSODL and for
TPCODL is shown in the following table:

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 Table – 83
Revenue Requirement of DISCOMs for the FY 2021-22 – Retail Business
(Rs. in Cr.)
Ratio out TPWODL NESCO Utility TPSODL TPCODL TOTAL
of Total
approval
Expenditure (%) Approved Approved Approved Approve Approved Approve Approve Approve Approved Approve
Total Retail Total d Retail Total d Retail d Total d Retail Total d Retail
Cost of power 100 2898.20 2898.20 1881.60 1881.60 848.70 848.70 2629.07 2629.07 8,257.57 8257.57
purchase
Transmission 100 240.80 240.80 164.64 164.64 114.80 114.80 260.12 260.12 780.36 780.36
Charges
SLDC Charges 100 1.48 1.48 1.01 1.01 0.72 0.72 1.60 1.60 4.81 4.81
Employee costs 40 409.49 163.79 357.24 142.90 404.76 161.90 605.70 242.28 1,777.19 710.88
Repair & 10 109.22 10.92 114.23 11.42 55.36 5.54 202.94 20.29 481.76 48.18
Maintenance
A & G Expenses 60 63.66 38.19 49.20 29.52 45.13 27.08 82.94 49.76 240.93 144.56
Bad and 100 27.42 27.42 14.84 14.84 12.21 12.21 32.05 32.05 86.52 86.52
Doubtful debt
Depreciation 10 36.34 3.63 32.86 3.29 21.47 2.15 43.57 4.36 134.24 13.42
Interest on 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - 0.00
Capital Loan
(Excluding SD)
Interest on 100 34.37 34.37 26.78 26.78 11.60 11.60 33.45 33.45 106.20 106.20
security deposit
Return on equity 10 48.00 4.80 40.00 4.00 32.00 3.20 48.00 4.80 168.00 16.80
Gross Retail 3868.97 3423.61 2682.40 2279.99 1546.76 1187.90 3939.44 3277.79 12037.57 10169.2
Supply Cost 9
Less: 237.45 216.54 137.42 129.53 25.56 24.76 104.80 90.41 505.23 461.24
Miscellaneous
Receipts
Net Retail 3,631.52 3,207.07 2,544.97 2,150.46 1,521.20 1,163.14 3834.65 3187.37 11,532.34 9,708.04
Supply Cost

479. The Commission in the last RST order directed to segregate their accounts for
wheeling business and retail supply business in terms of Regulation 4.4 of OERC
(Terms and Conditions for Determination of Wheeling Tariff & Retail Supply Tariff)
Regulations, 2014. The Commission directs DISCOMs to take necessary steps in
order to segregate their accounts for wheeling business and retail supply business in
terms of the said OERC Regulation. The compliance on this account must be furnished
by 31st July, 2022.

TARIFF DESIGN

The present tariff structure

480. In line with the prevailing practice of tariff design, the Commission has decided to
continue with the prevailing practice of single part, two part and three part tariffs for
the ensuing year. While single part tariff is applicable to consumers covered under
Kutir Jyoti, the other categories of consumers are covered under two part and three
part tariffs.

481. Two part tariff under LT supply covers consumers with connected load/contract
demand less than 110 kVA and they are having MMFC (based on Rs. /kW or KVA)

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 and energy charges.

482. Three part tariff under HT and EHT supply is applicable to consumers with contract
demand of 110 kVA and above having demand charges (based on Rs./kVA), energy
charges (Rs./KVAh) and customer service charge (Rs./month).

Single Part Tariff

Kutir Jyoti consumers: Fixed Monthly Charge (Rs./Month) for consumption upto 30
units per month.
Two Part Tariff - LT Supply less than 100 KW / 110 kVA
All classes of consumers other than Kutir Jyoti
(a) Energy Charge (kWh) (Paise/unit)
(b) Monthly Minimum Fixed Charge (MMFC) (Rs./KW/Month)
Three Part Tariff - LT consumers with connected load 110 kVA and above
(a) Demand Charge (Rs./kVA)
(b) Energy Charge (kWh) (Paise/unit)
(c) Customer Service Charge (Rs./Month)
HT Consumers
(a) Demand Charge (Rs./kVA)
(b) Energy Charge (kVAh) (Paise/Unit)
(c) Customer Service Charge (Rs./Month)
EHT Consumers
(a) Demand Charge (Rs./kVA)
(b) Energy Charge (kVAh) (Paise/Unit)
(c) Customer Service Charge (Rs./Month)
483. In addition, certain other charges like prompt payment rebate, meter rent, delayed
payment surcharge, over drawal penalty/incentive, other miscellaneous charges, etc.
are payable in cases and circumstances mentioned in the later part of this order.

484. The details of charges applicable to various categories of consumers classified under
OERC Distribution (Conditions of Supply) Code, 2019 are discussed hereafter.

(a) Tariff for Consumers availing Power Supply at LT

485. The consumers availing power supply at LT with CD less than 110 kVA or 100 KW
have to pay MMFC and energy charges as described below:

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 (a) The MMFC is payable by the consumers with contract demand less than 110
kVA who are supplied power at LT.

(b) The Commission decides that rate of MMFC determined for FY 2020-21 shall
continue to apply for FY 2021-2022.

Table – 84
MMFC for LT consumers
Sl. Category of Consumers Monthly Minimum Monthly Fixed
No Fixed Charge for first Charge for any
KW or part (Rs.)* additional KW or
part (Rs.)
Approved For FY 2021-22
LT Category
1. Domestic (other than Kutir Jyoti) 20 20
2. General Purpose LT (<110 kVA) 30 30
3. Irrigation Pumping and Agriculture 20 10
4. Allied Agricultural Activities 20 10
5. Allied Agro-Industrial Activities 80 50
6. Public Lighting 20 15
7. LT Industrial (S) Supply 80 35
8. LT Industrial (M) Supply 100 80
9. Specified Public Purpose 50 50
10. Public Water Works and Sewerage 50 50
Pumping <110 kVA
* When agreement stipulates supply in kVA this shall be converted to kW by
multiplying with a power factor of 0.9 as per Regulation 2 (20) of OERC Distribution
(Conditions of Supply) Code, 2019.
486. Some consumers with connected load of less than 110 kVA might have been provided
with simple energy meters which record energy consumption and not the maximum
demand. But the OERC Distribution (Conditions of Supply) Code, 2019, provides that
“contract demand for loads of 110 kVA and above shall be as stipulated in the
agreement and may be different from the connected load. Contract Demand for a
connected load below 110 kVA shall be the same as connected load. However, in case
of installation with static meter/meter with provision of recording demand, the
recorded demand rounded to nearest 0.5 KW shall be considered as the contract
demand requiring no verification irrespective of the agreement. Therefore, for the
purpose of calculation of Monthly Minimum Fixed Charge (MMFC) for the connected
load below 110 kVA or 100 KW, the above shall form the basis. The licensees are
directed to follow the above provision of Regulation strictly.

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 Energy Charge (Consumers with Connected Load less than 110 kVA)
Domestic
487. The Commission is aware of the paying capability of our BPL consumers. Therefore,
the Kutir Jyoti consumers will only pay the monthly minimum fixed charge @ Rs.80/-
per month for consumption upto 30 units per month. In case these consumers consume
in excess of 30 units per month, they will be billed like any other domestic consumers
depending on their consumption and will lose their BPL status from that month
onward.

488. The Commission is also conscious of affordability of non-Kutir Jyoti consumers.

Keeping this in view the Energy Charge for supply to domestic consumers availing
low tension supply is determined for FY 2021-22 which are given below:

Domestic consumption slab per month Energy charge

Upto and including 50 Units 300 paise per unit
From 51 to 200 units 480 paise per unit
From 201 to 400 units 580 paise per unit
Balance units of consumption 620 paise per unit
489. In accordance with the provision under the OERC Distribution (Condition of Supply)
Code, 2019, initial power supply shall not be given without a correct meter. Load
factor billing has been done away w.e.f. 1st April, 2004, as stipulated in the
Commission’s RST order for FY 2003-04. As such licensees are directed not to bill
any consumer on load factor basis.

General Purpose LT (<110 kVA)

490. The Commission reviewed the existing tariff structure and decided to revise the rates
for GP LT category of consumers.

Table - 85
Slab Energy charge (P/U)
First 100 units 590
Next 200 units 700
Balance units 760
Irrigation Pumping and Agriculture

491. The Commission decides that the Energy Charge for this category shall be 150 paise
per unit for supply at LT as usual. Consumers in the irrigation pumping and
agriculture category availing power supply at HT will pay 140 paise per unit (kVAh).

146
 Allied Agricultural Activities

492. The Commission decides the tariff of this category shall be 160 paise per unit (kWh)
at LT and 150 paise per unit (kVAh) at HT.

Allied Agro-Industrial Activities

493. The Commission decides to allow a tariff of 470 paise per unit (kWh) at LT and 460
paise per unit (kVAh) at HT.

Energy Charges for Other LT Consumers

494. The Commission, in keeping with its objective of rationalisation of tariff structure by
progressive introduction of a cost-based tariff, has linked the Energy Charge at
different voltage levels to reflect the cost of supply. The following tariff structure is
determined for FY 2021-22 for all loads at LT except domestic, Kutir Jyoti, general
purpose, irrigation pumping, allied agricultural activities and allied agro-industrial
activities.

Voltage of Supply Energy Charge

LT 620 paise per unit

The above rate shall apply to the following categories:

1) Public lighting
2) LT industrial(S) supply <22 KVA
3) LT industrial(M) supply >=22 KVA <110 KVA
4) Specified Public Purpose
5) Public Water works and Sewerage pumping < 110 KVA
6) Public Water works and Sewerage pumping >= 110 KVA
7) General Purpose >= 110 KVA
8) Large Industries >=110 KVA
Tariff for consumers availing power supply at LT with contract demand of 110
kVA and above are given hereunder.

Customer Service Charge at LT

495. As explained earlier these categories of consumers are required to pay three part tariff.
The existing customer service charge for consumers with connected load of 110 kVA
and above shall continue for FY 2021-22.

147
 Table - 86
Category Voltage of Customer Service Charge
Supply (Rs. per Month)
Public Water Works (=>110kVA) LT 30
General Purpose (=>110kVA) LT 30
Large Industry LT 30
Demand charges at LT

496. The Commission examined the existing level of Demand Charge of

Rs.200/kVA/month payable by the consumers with a contract demand of 110 kVA and
above and decides not to revise it. This shall include Public Water Works and
Sewerage Pumping, General Purpose Supply and Large Industry of contract demand
of 110 kVA or more.

Voltage of Supply Demand charge

LT (110 kVA & above) Rs.200/ kVA/month

(b) Tariff For HT & EHT Consumers

(i) Customer Service Charge for consumers with contract demand of 110
kVA and above at HT & EHT

497. All the consumers at HT and EHT having CD of 110 kVA and above are liable to pay
customer service charge. This charge is meant for meeting the expenditure of the
licensees on account of meter reading, preparation of bills, delivery of bills, collection
of revenue and maintenance of customer accounts etc. The licensee is bound to meet
these expenses irrespective of the level of consumption of the consumer. The customer
service charges as existing shall continue as per details in the table below:

Table – 87
Category Voltage of Customer service
Supply charge (Rs./month)
Bulk Supply (Domestic) HT
Irrigation Pumping and Agriculture HT
Allied Agricultural Activities HT
Allied Agro-Industrial Activities HT
Specified Public Purpose HT
General Purpose (HT >70 kVA <110kVA) HT Rs.250/- for all
HT Industrial (M) Supply HT categories
General Purpose (=>110kVA) HT
Public Water Works and Sewerage Pumping HT
Large Industry HT
Power Intensive Industry HT
Mini Steel Plant HT

148
 Category Voltage of Customer service
Supply charge (Rs./month)
Emergency Supply to CGPs HT
Railway Traction HT
General Purpose EHT
Large Industry EHT
Railway Traction EHT
Heavy Industry EHT Rs.700/- for all
Power Intensive Industry EHT categories
Mini Steel Plant EHT
Emergency Supply to CGPs EHT
(ii) Demand charge for HT & EHT consumers

498. The Commission examined the existing level of Demand Charge of

Rs.250/kVA/month payable by the HT and EHT consumers and Rs.150 for HT
Industrial (M) Supply consumers only (>=22 kVA and less than 110 kVA) and decides
not to revise the same. The class of consumers and the voltage of supply to whom this
charge of Rs.250/150 per KVA per month shall be applicable are listed below.

HT Category (Rs.250 per KVA per month)

Specified Public Purpose

General Purpose (>70 kVA <110 kVA)
General Purpose (>=110 kVA)
Public Water Works and Sewerage Pumping
Large Industry
Power Intensive Industry
Mini Steel Plant
Railway Traction
HT Category (Rs.150 per KVA per month)

HT Industrial (M) Supply

EHT Category (Rs.250 per KVA per month)
General Purpose
Large Industry
Railway Traction
Heavy Industry
Power Intensive Industry
Mini Steel Plant
499. Consumers with contract demand 110 kVA and above are billed on two-part tariff on

149
 the basis of actual reading of the demand meter and the energy meter. They are also
allowed to maintain loads in excess of their contract demand. The Demand Charge
reflects the recovery of fixed cost payable by the consumers for the reservation of the
capacity made by the licensee for them. To insulate the licensee from the risk of
financial uncertainty due to non-utilisation of the contracted capacity by the consumer
it is necessary that the consumer pays at least a certain amount of fixed cost to the
licensee. To arrive at that cost the Commission studied the pattern of demand recorded
by the demand meters of all such consumers of the licensee. After taking into
consideration this aspect the Commission has decided that the existing method of
billing the consumer for the Demand Charge on the basis of the maximum demand
recorded or 80% of the contract demand, whichever is higher shall continue. The
method of billing of Demand Charge in case of consumers without a meter or with a
defective meter shall be in accordance with the procedure prescribed in OERC
Distribution (Conditions of Supply) Code, 2019. Again in case of statutory load
restriction the contract demand shall be assumed as the restricted demand.

500. As per the OERC Distribution (Conditions of Supply) Code, 2019, for contract
demand above 70 kVA but below 555 kVA, supply shall be at 3-phase, 3-wire, 11 kV.
However, these consumers connected prior to 01.10.95 may be allowed to continue to
receive power at LT. The Commission decides to continue with the same demand
charges for following consumers in HT.

Table - 88
Category (Rs./KVA/month)
Bulk Supply Domestic 20
Irrigation pumping 30
Allied Agricultural Activities 30
Allied Agro-Industrial Activities 50
501. However, the billing demand in respect of consumers with Contract Demand of less
than 110 KVA for all category of consumers having static meters should be the highest
demand recorded in the meter during the Financial Year irrespective of the Connected
Load, which shall require no verification. The highest demand recorded should
continue from the month it occurs till the end of the financial year for the billing
purpose.

(iii) Energy Charge for HT and EHT consumers

502. The Commission, aiming at rationalisation of tariff structure by progressive

150
 introduction of a cost-based tariff, has set the Energy Charge at different voltage levels
to reflect the cost of supply. While determining Energy Charge, the principle of higher
rate for supply at low voltage and gradually reduced rate as the voltage level goes up
has been adopted. This year the Commission has decided to introduce kVAh tariff for
HT and EHT consumers. This method of billing for energy charge captures both active
and reactive energy consumed by the consumers.

503. For domestic HT bulk supply consumers the energy charges has been fixed at 490
paise per unit (kVAh).

Graded Slab Tariff for HT/EHT Consumers

504. Considering more and more industries are running in higher load factor the
Commission has decided to modify the present Graded slab tariff for HT and EHT
consumers where the Demand charges are billed on kVA basis as given below:

Table – 89
Slab rate of energy charges for HT & EHT (Paise per unit (kVAh))
Load Factor (%) HT EHT
= < 60% 585 580
> 60% 475 470
505. All the industrial consumers (Steel Plant) having CD of 1 MW and above and drawing
power in 33 KV shall be allowed a rebate of 30 paise per unit (kVAh) for the units
consumed in excess of 60% of load factor and up to 70% of load factor and 40 paise
per units (kVAh) for the units consumed above 70% load factor upto 80% load factor
and 50 paise per units (kVAh) for energy drawn in excess of 80% load factor per
month. This shall be in addition to all other rebate the consumer is otherwise eligible.

506. Load factor has to be calculated as per Regulation 2 (42) of OERC Distribution Code,
2019. However, in calculation of load factor, the actual power factor of the consumer
and power-on-hours during billing period shall be taken into consideration.

507. Power on hours is defined as total hours in the billing period minus allowable power
interruption hour. The allowable power interruption hours should be calculated by
deducting 60 hours in a month from the total interruption hour. In case power
interruption is 60 hours or less in a month then no deduction shall be made.

HT Supply for Irrigation pumping, Allied Agricultural Activities and Allied

Agro-Industrial Activities Consumers

508. The Commission has decided to continue with the present tariff structure in respect of

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 Irrigation pumping, Allied Agricultural availing power at HT except Allied Agro
Industrial Activities. The Energy Charge applicable to them has been fixed as follows:

Category Energy Charge

Irrigation Pumping - 140 paise per unit
Allied Agricultural Activities - 150 paise per unit
Allied Agro-Industrial Activities - 460 paise per unit

Industrial Colony Consumption

509. Since the purpose of incentive scheme is to encourage higher consumption by the EHT
and HT consumers, the Commission after reviewing the scheme, directs that, the units
consumed for the colony shall be separately metered and the total consumption shall
be deducted from the main meter reading and billed at 490 paise per unit for supply at
HT and 485 paise per unit at EHT. For the energy consumed in colony in excess of
10% of the total consumption, the same shall be billed at the rate of Energy Charge
applicable to the appropriate class of industry.

Colony / Hostel consumption

510. The Educational Institution (Specified Public Purpose) having attached hostel and / or
residential colony who draw power through a single meter in HT shall be eligible to be
billed 15% of their energy drawal in bulk supply domestic category @ 490 paise per
unit.

Emergency power supply to CGPs/Generating stations

511. Industries owning CGPs/ Generating Stations have to enter into an agreement with the
concerned DISCOM Utilities subject to technical feasibility and availability of
required quantum of power/energy in the system as per the provision under the OERC
Distribution (Condition of Supply) Code, 2019. For them, (i) a flat rate of 780
paise/kWh at HT and (ii) 770 paise/kWh at EHT would apply. The industry owning
CGP and having zero contract demand can draw power supply for its CGP from the
Grid maximum upto the electrical energy in KWh limited to 10% load factor of the
highest capacity of the Captive Generating unit. Overdrawal of energy beyond 10% of
load factor of highest capacity of generating unit for consecutively three months shall
attract and shall be billed on two part tariff in kVAh per unit with ceasing of
emergency power supply status.

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 Peak and Off-Peak Tariff

512. Section 62(3) of the Electricity Act, 2003 mandates as follows:

“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.”
513. Accordingly, the Commission decides to allow off-peak hours for the purpose of tariff
from 10:00 PM to 6.00 AM of the next day. Three-phase Consumers barring those
mentioned below having static meters, recording hourly consumption with a memory
of 31 days and having facility for downloading printout drawing power during off-
peak hours shall be given a discount at the rate of 20 paise per unit of the energy
consumed during this period. This discount, however, will not be available to the
following categories of consumers.

i) Public Lighting Consumers

ii) Emergency supply to captive Generating plants

iii) LT Domestic

iv) LT General Purpose

Charges for Overdrawal

Penalty for overdrawal

514. Demand charge shall be calculated on the basis of 80% CD or actual MD whichever is
higher during period other than off peak hour. The overdrawal penalty shall be
charged on the excess of drawal over the 120% CD during the off-peak hours. The
penalty rate is Rs.250/KVA.

No off peak overdrawal benefit will be available if one overdraws beyond off peak
hours. In such circumstances, the overdrawal penalty @ Rs.250/KVA shall be levied
on the drawal in excess of the CD irrespective of the hours it occurs.

This penalty for overdrawal in all the above cases shall be over and above the normal
demand charges.

515. When Maximum Demand is less than the Contract Demand during hours other than
off peak hours then the consumer is entitled for over drawal benefit limited to 120% of

153
 Contract Demand during off peak hours. If MD exceeds 120% of CD during off peak
hours then the consumer is liable for overdrawal penalty only on the excess demand
recorded over 120% of CD @ Rs.250/- per KVA per month provided no other penalty
due to overdrawal is levied. If Maximum Demand exceeds the Contract Demand
beyond the off peak hours then the consumer is not entitled to get off peak hour over
drawal benefit even if the drawal during off peak hours is within 120% of CD.

Incentive for Overdrawal during off peak hours

516. As per the existing Commission’s Order all the consumers who pay two-part tariff
with > 110 KVA CD are allowed to draw upto 120% of contract demand during off
peak hours on payment of demand charge as per the 80% of the contract demand or
maximum demand drawn during other than off peak hours whichever is higher where
drawal of maximum demand is within CD.

517. The Commission has decided to continue with the existing tariff provisions wherein
there is no penalty for overdrawal during off-peak hours upto 120% of the contract
demand. The off-peak hours is defined as 10:00 PM to 6 AM of the next day.
However, any consumer overdrawing during hours other than off-peak hours shall not
be eligible for overdrawal benefit during off-peak hours. In case of Statutory Load
Regulation deemed contract demand shall be the restricted contract demand.

Eligibility for availing over drawal benefit during off peak hours

518. HT and EHT consumers are allowed for 120% over drawal benefit only if, their
maximum demand drawn during other than off peak hours remains within the contract
demand. In case the consumer overdraws than contract demand during other than off
peak hours, but within 120% of contract demand during off-peak hours, no overdrawal
benefit shall be allowed to such consumer. In that case the demand charge will be
calculated as per the recorded maximum demand, irrespective of hours of its drawal.

Metering on LT side of Consumers Transformer

519. As per Regulation 151 (ix) of OERC Distribution (Conditions of Supply) Code, 2019
Transformer loss, as computed below has to be added to the consumption as per meter
reading.

Energy loss = (730 X rating of the transformer KVA) /200.

Demand Loss in the transformer in KVA = Rating of the transformer in KVA / 200

154
 Incentive for prompt payment

520. The Commission examined the existing method of incentive and its financial
implications. The Commission has decided to grant incentive for early and prompt
payment as below:

a) A rebate of 10 paise/unit shall be allowed on energy charges if the payment of

the bill (excluding all arrears) is made by the due date indicated in the bill in
respect of the following categories of consumers.

LT: Domestic, General purpose <110 KVA, Irrigation Pumping and

Agriculture, Allied Agricultural Activities and LT Industrial (S), Public
Water Works and Sewerage Pumping.

HT: Bulk supply Domestic, Irrigation Pumping and Agriculture, Allied

Agricultural Activities, General purpose >70 <110 KVA, Public Water
Works and Sewerage Pumping.

b) Consumers other than those mentioned at Para ‘a’ above shall be entitled to a
rebate of 1% (one percent) of the amount of the monthly bill (excluding all
arrears), if payment is made within 3 working days of presentation of the bill.

521. Special Rebates

a. Hostels attached to the Schools run by SC/ST Dept. of Government of Odisha

shall get a rebate of Rs.2.40 paise per unit in energy charge under Specified
Public Purpose category (LT/HT).
b. All Swajala Dhara consumers shall get 10% special rebate on total bill (except
electricity duty and meter rent) in addition to other rebates they are otherwise
eligible if the electricity bill is paid within the prescribed due date of normal
rebate.
c. All rural LT domestic consumers availing power through correct meter shall
avail 5 paise per unit additional rebate over and above the 10 paise prompt
payment rebate if they pay the bill in time.
d. 2% rebate over and above normal rebate shall be allowed on the bill to the LT
domestic and single phase general purpose category of consumers only over and
above all the rebates who pay through digital means (cash less).
e. Own Your Transformer – “OYT Scheme” is intended for the existing
individual LT domestic, individual / Group General Purpose consumers who

155
 would like to avail single point supply by owning their distribution
transformer. They will continue to be LT consumers with appropriate tariff
category. In addition licensee would extend a special concession of 5% rebate
on the total electricity bill (except electricity duty and meter rent) of the
respective category apart from the normal rebate on the payment of the bill by
the due date. If the payment is not made within due date no rebate, either
normal or special is payable. The maintenance of the ‘OYT’ transformer shall
be made by DISCOM Utilities. For removal of doubt it is clarified that the
“OYT Scheme” is not applicable to any existing or new HT/EHT consumer.

Reconnection Charge

522. The Commission decided that existing re-connection charges shall continue as
follows:

Table - 90
Category of Consumers Rate Applicable
LT Single Phase Domestic Consumer Rs.150/-
LT Single Phase other consumer Rs.400/-
LT 3 Phase consumers Rs.600/-
HT and EHT consumers Rs.3000/-
Delayed Payment Surcharge

523. The Commission has examined the present method and rate of DPS and has decided
that if payment is not made within the due date, Delayed Payment Surcharge shall be
charged for every day of delay @ 1.25% per month on the amount remaining unpaid
(excluding arrears on account of DPS) in respect of categories of consumers as
mentioned below:

i. Large industries
ii. LT/HT Industrial (M) Supply
iii. Railway Traction
iv. Public Lighting
v. Power Intensive Industries
vi. Heavy Industries
vii. General Purpose Supply >=110 KVA
viii. Specified Public Purpose
ix. Mini Steel Plants
x. Emergency supply to CGP

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 xi. Allied Agro-Industrial Activities
xii. Colony Consumption
524. There is a tendency among the category of LT Domestic, General Purpose and HT
Bulk Supply Domestic etc. consumers who don’t pay delayed payment surcharge to be
negligent towards bill payment once the due date is over. Therefore, it is directed that
LT Domestic, LT General Purpose and HT Bulk Supply Domestic consumers will get 10
paise/unit rebate for prompt payment of the bill within due date. Thereafter, if the bill is
paid within the next due date, there shall be no Rebate/Delayed Payment Surcharge. But if
it is paid beyond the next due date then there shall be a Delayed Payment Surcharge of 1%
of the billed value for each month of delay.

The tariff as determined above is reflected in Annexure-B. For any discrepancy

Annexure-B is final.
Rounding off of consumers billed amount to nearest rupee

525. The Commission directs for rounding off of the electricity bills to the nearest rupee
and at the same time directs that the money actually collected should be properly
accounted for.

Charges for Temporary Supply

526. The tariff for the period of temporary connection shall be at the rate applicable to the
relevant consumer category with the exception that Energy Charges shall be 10%
higher in case of temporary connection compared to the regular connection.
Connections, temporary in nature, shall be provided as far as possible with pre-paid
meters to avoid accumulation of arrears in the event of dismantling of the temporary
connection etc.

New Connection Charges for LT

527. Prospective small consumers requiring new LT single phase connection upto and
including 2 kW load shall only pay a flat charge of Rs.1500/- and beyond 2 KW upto 5
KW a flat charge of Rs.2500/- as service connection charges and a processing fees of
Rs.50/- excluding security deposit and cost of meter as applicable. The service
connection charges include the cost of material and supervision charges. In case of
Single phase LT new or load enhancement consumers upto 5 KW shall not be asked to
bear the cost of transformer or any other related additional cost for system
improvement.

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 Meter Rent

528. The existing meter rent for consumer during FY 2021-22 shall continue as follows:

Table - 91
Type of Meter Monthly Meter Rent (Rs.)
1. Single phase electro-magnetic Kwh meter 20
2. Three phase electro-magnetic Kwh meter 40
3. Three phase electro-magnetic tri-vector meter 1000
4. Tri-vector meter for Railway Traction 1000
5. Single phase Static Kwh meter 40
6. Three Phase Static Kwh meter 150
7. Three phase Static Tri-vector meter 1000
8. Three phase Static Bi-vector meter 1000
9. LT Single phase Smart meter 60
10. LT Three phase AMR/AMI compliant meter 150
Note: Meter rent for meter supplied by DISCOMs shall be collected for a period of
60 months only. Once it is collected for sixty months meter rent collection
should stop. All statutory levies shall be collected in addition to meter rent.
The Commission may revise the meter rent by a special order.
Effective date of Tariff

529. The tariff schedule attached to this order shall be made effective from 04.04.2021 and
shall remain in force until further order of the Commission. In order to simplify the
procedure, we stipulate that if the metering and billing date falls within 15th of April
2021(including 15th), the bill for the consumers will be prepared on pre-revised rate
i.e. tariff applicable for the FY 2020-21 w.e.f 01.10.2020. If the billing and metering
date falls on or after 16th of April, 2021 the bill will be prepared at the revised tariff
rate i.e. Tariff applicable for 2021-22 w.e.f 04.04.2021. The DISCOMs should ensure
that the billing cycle of any consumer should not be disturbed due to the above
stipulations.

530. The Open Access Charges (Wheeling Charge, Transmission Charge and Cross
Subsidy Surcharge) decided in this order (in Case Nos. 79, 80, 81, 82 (A) of 2020 shall
be made effective from 4th April, 2021 and shall be in force until further order. The
cases are disposed of accordingly.

531. The applications of TPWODL, NESCO Utility, TPSODL and TPCODL vide Case
Nos. 75/2020 (TPWODL), 76/2020 (NESCO Utility), 77/2020 (TPSODL) and
78/2020 (TPCODL) for approval of Aggregate Revenue Requirement and Retail
Supply Tariff for FY 2021-22 are disposed of accordingly.

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532. The Retail Supply Tariff as stipulated in the order shall be effective from 4th
April, 2021 and shall be in force until further orders.

Sd/- Sd/- Sd/-

(G. MOHAPATRA) (S. K. PARHI) (U. N. BEHERA)

MEMBER MEMBER CHAIRPERSON

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 ANNEXURE- A
REVENUE REQUIREMENT OF DISCOMs FOR THE FY 2021-22
TPWODL NESCO UTILITY TPSODL TPCODL TOTAL
Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved
Expenditure
2020-21 2021-22 2021-22 2020-21 2021-22 2021-22 2020-21 2021-22 2021-22 2020-21 2021-22 2021-22 2020-21 2021-22 2021-22
Cost of Power Purchase 2506.40 2660.26 2898.20 2017.98 1814.63 1881.60 776.39 793.91 848.70 2547.43 2485.69 2629.07 7,848.20 7754.49 8257.57
Transmission Cost 200.00 206.12 240.80 164.25 143.43 164.64 101.25 100.75 114.80 236.75 229.87 260.12 702.25 680.17 780.36
SLDC Cost 1.22 1.22 1.48 1.00 1.00 1.01 0.62 0.63 0.72 1.44 1.44 1.60 4.28 4.29 4.81
Total Power Purchase, 2,707.62 2,867.60 3,140.48 2,183.23 1,959.06 2,047.25 878.26 895.29 964.22 2,785.62 2,717.00 2,890.79 8,554.73 8438.95 9042.74
Transmission & SLDC Cost
(A)
Employee costs 361.02 523.86 409.49 348.84 362.63 357.24 370.88 416.27 404.76 606.75 773.19 605.70 1,687.49 2075.95 1777.19
Repair & Maintenance exp. 92.24 109.53 109.22 95.09 106.48 114.23 45.96 86.81 55.36 139.62 237.27 202.94 372.91 540.09 481.76
Administrative and General 52.80 83.38 63.66 39.29 63.45 49.20 35.49 58.23 45.13 70.82 193.44 82.94 198.40 398.50 240.93
Expenses
Provision for Bad & 23.39 90.62 27.42 13.97 81.85 14.84 11.01 29.40 12.21 30.87 35.32 32.05 79.24 237.19 86.52
Doubtful Debts
Depreciation 61.40 72.89 36.34 63.58 71.16 32.86 29.03 55.90 21.47 94.56 107.40 43.57 248.57 307.35 134.24
Interest on loan including 53.20 84.20 34.37 46.85 74.08 26.78 25.48 52.38 11.60 69.81 128.24 33.45 195.34 338.90 106.20
Interest on S.D
Total Operation & 644.05 964.48 680.49 607.62 759.65 595.15 517.85 698.99 550.54 1,012.43 1,474.86 1,000.65 2,781.95 3897.98 2826.83
Maintenance and Other
Cost
Return on equity 7.78 7.78 48.00 10.54 10.54 40.00 6.03 6.03 32.00 11.64 73.48 48.00 35.99 97.83 168.00
Total Distribution Cost 651.83 972.26 728.49 618.16 770.19 635.15 523.88 705.02 582.54 1,024.07 1,548.34 1,048.65 2,817.94 3995.81 2994.83
Less: Miscellaneous Receipt 191.39 192.25 237.45 135.66 85.31 137.42 39.77 18.09 25.56 178.98 109.56 104.80 545.80 405.21 505.23
Net Distribution Cost(B) 460.44 780.01 491.04 482.50 684.88 497.72 484.11 686.93 556.98 845.09 1,438.78 943.86 2,272.14 3590.60 2489.60
Special Appropriation
Contingency reserve - 7.61 - 7.89 - 6.53 - 22.03 -
Total Special - 7.61 - 7.89 - 6.53 - - 22.03 -
Appropriation (C)
Total Revenue 3,168.06 3,655.22 3,631.52 2,665.73 2,651.83 2,544.97 1,362.37 1,588.75 1,521.20 3,630.71 4,155.78 3,834.65 10,826.87 12051.58 11532.34
Requirement (A+B+C)
Expected Revenue(Full 3187.81 3398.30 3705.75 2,677.46 2,338.51 2,545.61 1372.94 1470.21 1522.73 3640.12 3532.00 3835.58 10,878.33 10739.02 11609.67
year )
GAP at existing(+/-) 19.75 (256.92) 74.23 11.73 (313.32) 0.64 10.57 (118.54) 1.53 9.41 (623.78) 0.93 51.46 (1,312.56) 77.33

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 ANNEXURE-B
RETAIL SUPPLY TARIFF EFFECTIVE FROM 4th APRIL, 2021
Demand Monthly
Charge Customer Minimum Monthly Fixed Rebate
Voltage
Sl. (Rs./KW/ Energy Service Fixed Charge for any (P/kWh/
Category of Consumers of
No. Month)/ Charge Charge Charge for additional KW kVAh) /
Supply
(Rs./KVA/ (Rs./Month) first KW or or part (Rs.) DPS
Month) part (Rs.)
LT Category (P/kWh)
1 Domestic
1.a Kutir Jyoti <= 30 Units/month LT FIXED MONTHLY CHARGE--> 80
1.b Others Rebate 10
(Consumption <= 50 units/month) LT 300.00
(Consumption >50, <=200 units/month) LT 480.00
20 20
(Consumption >200, <=400 units/month) LT 580.00
Consumption >400 units/month) LT 620.00
2 General Purpose < 110 KVA Rebate 10
Consumption <=100 units/month LT 590.00
Consumption >100, <=300 units/month LT 700.00 30 30
(Consumption >300 units/month) LT 760.00
3 Irrigation Pumping and Agriculture LT 150.00 20 10 Rebate 10
4 Allied Agricultural Activities LT 160.00 20 10 Rebate 10
5 Allied Agro-Industrial Activities LT 470.00 80 50 Rebate/DPS
6 Public Lighting LT 620.00 20 15 Rebate/DPS
7 L.T. Industrial (S) Supply <22 KVA LT 620.00 80 35 Rebate 10
L.T. Industrial (M) Supply >=22 KVA
8 LT 620.00 100 80 Rebate/DPS
<110 KVA
9 Specified Public Purpose LT 620.00 50 50 Rebate/DPS
Public Water Works and Sewerage
10 LT 620.00 50 50 Rebate 10
Pumping <110 KVA
Public Water Works and Sewerage
11 LT 200 620.00 30 Rebate 10
Pumping >=110 KVA
12 General Purpose >= 110 KVA LT 200 620.00 30 Rebate/DPS
13 Large Industry >= 110 KVA LT 200 620.00 30 Rebate/DPS
Energy
HT Category Charge
(P/kVAh)
14 Bulk Supply - Domestic HT 20 490.00 250 Rebate 10
15 Irrigation Pumping and Agriculture HT 30 140.00 250 Rebate 10
Rebate 10
16 Allied Agricultural Activities HT 30 150.00 250
17 Allied Agro-Industrial Activities HT 50 460.00 250 Rebate/DPS
18 Specified Public Purpose HT 250 250 Rebate/DPS
19 General Purpose >70 KVA < 110 KVA HT 250 250 Rebate 10
20 H.T Industrial (M) Supply HT 150 250 Rebate/DPS
21 General Purpose >= 110 KVA HT 250 As 250 Rebate/DPS
indicated
Public Water Works & Sewerage
22 HT 250 in the 250 Rebate 10
Pumping notes
23 Large Industry HT 250 below 250 Rebate/DPS
24 Power Intensive Industry HT 250 250 Rebate/DPS
25 Mini Steel Plant HT 250 250 Rebate/DPS
26 Railway Traction HT 250 250 Rebate/DPS
27 Emergency Supply to CGP HT 0 780.00 250 Rebate/DPS
Colony Consumption (Both SPP &
28 HT 0 490.00 0 Rebate/DPS
Industrial)
Energy
EHT Category Charge
(P/kVAh)
29 General Purpose EHT 250 700 Rebate/DPS
30 Large Industry EHT 250 As 700 Rebate/DPS
31 Railway Traction EHT 250 indicated 700 Rebate/DPS
in the
32 Heavy Industry EHT 250 notes 700 Rebate/DPS
33 Power Intensive Industry EHT 250 below 700 Rebate/DPS
34 Mini Steel Plant EHT 250 700 Rebate/DPS
35 Emergency Supply to CGP EHT 0 770.00 700 Rebate/DPS
36 Colony Consumption EHT 0 485.00 0 Rebate/DPS

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Note:
Slab rate of energy charges for HT & EHT (Paise/kVAh)
Load Factor (%) HT EHT
= < 60% 585.00 580.00
> 60% 475.00 470.00

(i) Energy charges for all LT consumers shall continue to be billed on the basis of kWh
whereas the energy charges for HT and EHT consumers shall be billed on the basis of
kVAh drawal. All open access transaction will be maintained in kWh sale only and
kVAh based sale shall be converted into kWh base on the power factor for the month
provided in the energy bills if necessary. For electricity duty purpose the kWh reading
of the meter shall be utilised. For load factor purpose kWh reading shall be taken into
consideration.

(ii) Power factor penalty / incentive and reliability surcharge are abolished.

(iii) The reconnection charges w.e.f. 01.04.2015 shall continue unaltered

Category of Consumers Rate Applicable

LT Single Phase Domestic Consumer Rs.150/-
LT Single Phase other consumer Rs.400/-
LT 3 Phase consumers Rs.600/-
All HT & EHT consumers Rs.3000/-
(iv) Energy Charges shall be 10% higher in case of temporary connection compared to the
regular connection in respective categories.

(v) The meter rent w.e.f. 04.04.2021 shall be as follows:

Type of Meter Monthly Meter Rent (Rs.)

1. Single phase electro-magnetic kWh meter 20
2. Three phase electro-magnetic kWh meter 40
3. Three phase electro-magnetic tri-vector meter 1000
4. Tri-vector meter for Railway Traction 1000
5. Single phase Static kWh meter 40
6. Three Phase Static kWh meter 150
7. Three phase Static Tri-vector meter 1000
8. Three phase Static Bi-vector meter 1000
9. LT Single Phase Smart Meter 60
10. LT Three phase AMR/AMI compliant meter 150
Note: Meter rent for meter supplied by DISCOMs shall be collected for a period of
60 months only. Once it is collected for sixty months meter rent collection
should stop. All statutory levies shall be collected in addition to meter rent.
The Commission may revise the meter rent by a special order.

162
(vi) All the industrial consumers (Steel Plant) having CD of 1 MW and above and drawing
power in 33 KV shall be allowed a rebate of 30 paise per unit (kVAh) for the units
consumed in excess of 60% of load factor and up to 70% of load factor and 40 paise
per units (kVAh) for the units consumed above 70% load factor upto 80% load factor
and 50 paise per units (kVAh) for energy drawn in excess of 80% load factor per
month. This shall be in addition to all other rebate the consumer is otherwise eligible.

(vii) Any industry having CGP wishing to avail power from DISCOMs above 80% of load
factor shall be allowed to draw power @ Rs.3.50/kVAh for incremental units above
80% load factor. No overdrawl penalty shall be levied on them. Any industry having
CGP without CD availing emergency power only can get this benefit for incremental
units above emergency drawal. For this purpose the industry shall enter into a
tripartite agreement with DISCOMs and GRIDCO.

(viii) All the industrial consumers drawing power in EHT shall be eligible for a rebate of 10
paise per unit (kVAh) for all the units consumed in excess of 80% of load factor.

(ix) LT Single Phase consumers of all categories having CD upto 5 KW with pole within
30 meters from the consumer premises shall pay new connection charges excluding
processing fees as follows:

Upto 2 KW : Rs.1,500/-

Beyond 2 KW upto 5 KW : Rs.2,500/-

Provided that if the line extension is required beyond 30 meters, the licensee/supplier
shall charge @ Rs.5,000/- for every span of line extension in addition to the above
charges.

(x) A “Tatkal Scheme” for new connection is applicable to LT Domestic, Agricultural

and General Purpose consumers.

(xi) In case of installation with static meter/meter with provision of recording demand, the
recorded demand rounded to nearest 0.5 KW shall be considered as the contract
demand requiring no verification irrespective of the agreement. Therefore, for the
purpose of calculation of Monthly Minimum Fixed Charge (MMFC) for the
connected load below 110 KVA, the above shall form the basis.

(xii) LT Domestic, LT General Purpose and HT Bulk Supply Domestic consumers will get
10 paise/unit rebate for prompt payment of the bill within due date. Thereafter, if the

163
 bill is paid within the next due date, there shall be no Rebate/Delayed Payment
Surcharge. But if it is paid beyond the next due date then there shall be a Delayed
Payment Surcharge of 1% of the billed value for each month of delay.

(xiii) The billing demand in respect of consumer with Contract Demand of less than 110
KVA should be the highest demand recorded in the meter during the Financial Year
irrespective of the Connected Load, which shall require no verification.

(xiv) Three phase consumers with static meters are allowed to avail TOD rebate excluding
Public Lighting, emergency supply to CGP, LT Domestic and LT General Purpose
categories @ 20 paise/unit for energy consumed during off peak hours. Off peak
hours has been defined as 10 PM in the evening to 6 AM of the next day.

(xv) Hostels attached to the Schools recognised and run by SC/ST Department,
Government of Odisha shall get a rebate of Rs.2.40 paise per unit in energy charge
under Specified Public Purpose category (LT / HT) which shall be over and above the
normal rebate for which they are eligible.

(xvi) Swajala Dhara consumers under Public Water Works and Sewerage Pumping
Installation category shall get special 10% rebate if electricity bills are paid within
due date over and above normal rebate.

(xvii) During the statutory restriction imposed by the Fisheries Department, the Ice
Factories located at a distance not more than 5 Km. towards the land from the sea
shore of the restricted zone will pay demand charges based on the actual maximum
demand recorded during the billing period.

(xviii) Poultry Farms with attached feed units having connected load less than 20% of the
total connected load of poultry farms should be treated as Allied Agricultural
Activities instead of General Purpose category for tariff purpose. If the connected
load of the attached feed unit exceeds 20% of the total connected load then the entire
consumption by the poultry farm and feed processing unit taken together shall be
charged with the tariff as applicable for General Purpose or the Industrial Purpose as
the case may be.

(xix) The food processing unit attached with cold storage shall be charged at Agro-
Industrial tariff if cold storage load is not less than 80% of the entire connected load.
If the load of the food processing unit other than cold storage unit exceeds 20% of the
connected load, then the entire consumption by the cold storage and the food

164
 processing unit taken together shall be charged with the tariff as applicable for general
purpose or the industrial purpose as the case may be.

(xx) Drawal by the industries during off-peak hours upto 120% of Contract Demand
without levy of any penalty has been allowed. “Off-peak hours” for the purpose of
tariff is defined as a period from 10 PM in the evening to 6.00 A.M. of the next day.
The consumers who draw beyond their contract demand during hours other than the
off-peak hours shall not be eligible for this benefit. If the drawal in the off peak hours
exceeds 120% of the contract demand, overdrawal penalty shall be charged on the
drawal over and above the 120% of contract demand (for details refer Tariff Order).
When Statutory Load Regulation is imposed then restricted demand shall be treated as
contract demand.

(xxi) General purpose consumers with Contract Demand (CD) < 70 KVA shall be treated as
LT consumers for tariff purposes irrespective of level of supply voltage. As per
Regulation 134 (I) of OERC Distribution (Conditions of Supply) Code, 2019 the
supply for load above 5 KW upto and including 70 KVA shall be in 3-phase, 3 or 4
wires at 400 volts between phases.

(xxii) Own Your Transformer – “OYT Scheme” is intended for the existing individual LT
domestic, individual/Group General Purpose consumers who would like to avail
single point supply by owning their distribution transformer. In such a case licensee
would extend a special concession of 5% rebate on the total electricity bill (except
electricity duty and meter rent) of the respective category apart from the normal
rebate on the payment of the bill by the due date. If the payment is not made within
due date no rebate, either normal or special is payable. The maintenance of the ‘OYT’
transformer shall be made by DISCOM utilities. For removal of doubt it is clarified
that the “OYT Scheme” is not applicable to any existing or new HT/EHT consumer.

(xxiii) The rural LT domestic consumers shall get 5 paise per unit rebate in addition to
existing prompt payment rebate who draw their power through correct meter and pay
the bill in time.

(xxiv) 2% rebate over and above normal rebate shall be allowed on the bill to the LT
domestic and single phase general purpose category of consumers only over and
above all the rebates who pay through digital means. This rebate shall be applicable
on the current month bill if paid in full.

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(xxv) 2% rebate shall be allowed to all pre-paid consumers on pre-paid amount.

(xxvi) A Special rebate to the LT single phase consumers in addition to any other rebate he
is otherwise eligible for shall be allowed at the end of the financial year (the bill for
month of March) if he has paid the bill for all the 12 months of the financial year
consistently without fail within due date during the relevant financial year. The
amount of rebate shall be equal to the rebate of the month of March for timely
payment of bill.

(xxvii) The Educational Institution (Specified Public Purpose) having attached hostel and / or
residential colony who draw power through a single meter in HT shall be eligible to
be billed 15% of their energy drawal in HT bulk supply domestic category.

(xxviii)The printout of the record of the static meter relating to MD, PF, number and period
of interruption shall be supplied to the consumer wherever possible with a payment of
Rs.500/- by the consumer for monthly record.

(xxix) Charging of electric vehicles shall be treated as GP category.

(xxx) Tariff as approved shall be applicable in addition to other charges as approved in this
Tariff order w.e.f. 04.04.2021.

*****

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 ANNEXURE-C

1. The Open Access Charges i.e. Cross Subsidy Surcharge, Wheeling and Transmission
Charge for Open Access consumer of 1MW and above for FY 2021-22 effective from
04.04.2021 as determined by the Commission are given in the table below:

Surcharge, Wheeling Charge & Transmission Charge for Open access consumer
1MW & above

Cross Subsidy Wheeling

Transmission Charges for Open
Name of the Surcharge (P/U) Charge P/U
applicable to Access Customer (applicable for
licensee
EHT HT HT consumers HT & EHT consumers)
only
TPCODL 164.35 102.54 78.06 The Open Access customer
NESCO Utility 141.04 66.97 94.30 availing Open Access shall pay
TPWODL 130.33 76.83 60.17 Rs.6720/MW-day (Rs.280/MWh)
TPSODL 212.23 141.43 98.94 as transmission charges.

2. The normative transmission loss at EHT (3.0%) and normative wheeling loss for HT level
(8%) are applicable for the year 2021-22.

3. Additional Surcharge: No additional surcharge over and above the Cross-Subsidy

Surcharge needs to be given to the embedded licensee.

4. No Cross-subsidy surcharge are payable by the consumers availing Renewable power.

5. 20% Transmission & Wheeling charge is payable by the consumer drawing power from
Renewable source excluding Co-generation & Bio mass power plant.

6. These charges as notified for the FY 2021-22 will remain in force until further order.

******

167