2
Bihar Electricity Regulatory Commission
Ground Floor, Vidyut Bhawan – II
Jawahar Lal Nehru Marg
Patna – 800 021
ANNUAL REPORT
(20.05.2005 to 31.03.2007)
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C O N T E N T S
Sl. No. Page No.
1. Message ……………………………………………………………………….. 1
2. Mission …………………………………………………………………………..1. 2
3. Background …………………………………………………………….…….. 3
4. Profile of Chairman and Members of the Commission …………….…. 4
5. Functions of the State Commission …………………………………….…. 9
6. Power Profile of the State of Bihar …………………………….…………… 11
7. Activities of the Commission …………………………………………….… 17
– Framing of Regulations
– Tariff setting for Bihar State Electricity Board
– Suo-motu Proceeding No. 1/2006
– Proceeding in G.C.No. 1/2006 –Anustha Devi Vrs. BSEB
– Review Petition No. 1/2006
– Establishment of Consumer Grievance Redressal Forum
8. Miscellaneous …………………………………….…..………………………. 42
– Annual Statement of Accounts
– Officers and Staff of the Commission
– Training/Participation in Workshop, Meeting of FOR and FOIR
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MESSAGE
This is the first report since its inception which the
Commission presents focusing an overall view of its activities
for the period from August 2005 to March 2007. Though this is
only the second year of its functioning, instead of many
constraints, limited manpower and infrastructure resources,
the Commission has undertaken many important tasks.
Majority of the regulations under the Electricity Act, 2003
were framed including the Open Access Regulation which
make consumer choice a viable option. A Consumer
Grievance Redressal machinery was set up on the behest of
the Commission in the State. All efforts were made by the
Commission to make the power sector competitive, financially
viable and consumer friendly.
Justice B.N.P. Singh
Chairman
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MISSION STATEMENT
The Bihar Electricity Regulatory Commission is committed to
fulfil the tasks mandated by the Electricity Act 2003 for
creating an efficient and economically viable electricity
industry in the State balancing the interest of the
stakeholders and also safeguarding the consumer’s interest
to ensure safe and reliable supply of power at reasonable
rates. In discharge of its functions due regard is being given
to transparency, accountability and equitability and it
safeguards the interest of the State and gives a fair deal to
consumers.
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3. BACKGROUND
The Bihar Electricity Regulatory Commission ( hereinafter referred to as
Commission or BERC) has been established by the Government of Bihar under
Section 17 of the Electricity Regulatory Commissions Act,1998 vide Government of
Bihar Notification no. 1284 dated 15th April, 2002. The Electricity Regulatory
Commissions Act, 1998 along with the Indian Electricity Act, 1910 and Electricity
(Supply) Act, 1948 was repealed by Section 185 of the Electricity Act, 2003. The first
proviso of Section 82 (1) has ensured continuity of the Commission along with that of
State Electricity Regulatory Commissions by laying down that the State Regulatory
Commission established by the State Govt. under Section 17 of Electricity Regulatory
Commissions Act, 1998, and functioning as such immediately before the appointed
date shall be the State Commission for the purpose of the Electricity Act, 2003.
The BERC was constituted in May 2005 after Hon’ble Chairman Justice B.N.P.
Singh took oath of office on 20th May, 2005 before His Excellency the Governor of
Bihar. The other Members namely Shri B.K. Halder and Shri S.K. Jayaswal took oath of
Office on 11th July and 26th July, 2005 respectively before His Excellency the Governor
of Bihar. The Commission became functional from 15th August, 2005. The Commission
is presently located at Vidyut Bhawan-II, Jawahar Lal Nehru Marg (Bailey Road),
Patna 800 021.
This report on the working of the Bihar Electricity Regulatory Commission has
been prepared as per provision under Section 105 of the Electricity Act, 2003. The
Electricity Act, 2003 has come into force w.e.f. 10.06.2003 consolidating the laws
relating to Generation, Transmission, Distribution and Trading and use of Electricity
and for taking measures conducive to the development of Electricity Industry,
promoting competition therein, protecting interest of consumers and supply of
electricity to all, rationalization of electricity tariff, ensuring transparent policies
regarding subsidies, promotion of efficient and environmentally benign policies.
Generation has been delicensed to promote power generation and reduce the gap
between demand and supply to the least possible. This Act aims to promote
investment through private participation and also to provide the consumers with
quality power and service at the reasonable and affordable cost. It also protects the
private investors by protecting the investment by grant of return on the investment. It
is expected that the competition in power sector will bring better technology,
improved service and reduced cost making the electricity cheaper for the end-users.
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4. PROFILE OF CHAIRMAN AND MEMBERS OF THE COMMISSION
Justice B.N.P. Singh
Chairman
Justice B.N.P. Singh joined judicial service on 14th June, 1974. After completion
of the probation period he was promoted to the rank of Subordinate Judge and on
being promoted as Additional District & Sessions Judge in Bihar Superior Judicial
Service in the year 1989, he was appointed Special Judge, C.B.I., Vigilance; Special
Judge, Essential Commodity Act Cases and Special Judge, Harijan Atrocities Cases
and was vested with powers for trial of these cases by the Government of Bihar on
recommendation of Hon’ble High Court, Patna. He conducted an important enquiry
under direction of Hon’ble Supreme Court of India at Bhagalpur in the matter of a
convict who allegedly had not served the sentence awarded to him. He was
appointed District & Sessions Judge, Daltonganj, Palamu in the year 1996. Thereafter
he was appointed by the Hon’ble Chief Justice, Patna High Court, as Registrar,
Vigilance. Pursuant thereto he was appointed Registrar General of Patna High Court
by the Hon’ble Chief Justice of Patna High Court. He was elevated to the Bench of
Patna High Court in the year 2001 and on superannuation he was appointed
Chairman, Bihar Electricity Regulatory Commission by His Excellency the Governor of
Bihar in the year 2005.
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Shri B.K. Halder
Member
Shri B.K. Halder took oath of the office of Member, Bihar Electricity Regulatory
Commission before His Excellency the Governor of Bihar on 11th July, 2005. He took
voluntary retirement from the Indian Administrative Service.
Shri Halder did his Master’s Degree from Calcutta University. He successfully
completed Management course in Market Economy from Sussex University, United
Kingdom. He was Research Fellow in Oxford University, United Kinghdom. He has also
successfully completed the ECDL course in Computer Application from Oxford
University Computer Centre, U.K.
Before joining the Commission he held number of important posts in the
Government. He was District Magistrate, CHAPRA, KATIHAR and EAST SINGHBHUM
(Jamshedpur). He was Managing Director, Adityapur Industrial Area Development
Authority, Jamshedpur, which is famous for the units catering to the requirements of
the TATA Steel and TATA Motors (TELCO). During his tenure, maximum number of
small, medium and tiny units came into production. During this period he had to
interact with the officers of Bihar State Electricity Board for smooth supply of electricity
in the industrial area. He was Director of Industry, Government of Bihar for more than
three years. He became Divisional Commissioner, North Chotanagpur Division
(Hazaribagh) in 1994 and subsequently became Divisional Commissioner, South
Chotanagpur Division (Ranchi). While he was Secretary, Department of Personnel
and Administrative Reforms, Government of Bihar at Patna he opted for Government
of India deputation and joined there as Joint Secretary in the Ministry of Home Affairs.
His assignment in the Ministry was very sensitive in nature and he successfully
discharged his duties. Even after completion of five years, Government of India
wanted to give him another assignment related with the Communal Harmony but
State Government did not agree to extend his tenure, so he had to come back and
joined again in the post of Secretary, Personnel and Administrative Reforms,
Government of Bihar. Within a couple of months he was given the assignment of
Home Secretary, Government of Bihar.
During his tenure in the Administrative Service, barring a few years, he had to
conduct regular meetings and co-ordinate with the senior officers of Bihar State
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Electricity Board to sort out various problems related with power theft, law and order
problems due to non-availability of electricity, etc.
After joining B.E.R.C. he took keen interest to establish its office and to prepare
various Regulations, determination of ARR and Retail Tariff for the year 2006-07 and
other activities conducted by the Commission.
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Shri S.K. Jayaswal
Member
Shri S.K. Jayaswal, formerly of the Central Power Engineering Service, took oath
of the office of Member, Bihar Electricity Regulatory Commission before His Excellency
the Governor of Bihar on 26th July, 2005 after taking voluntary retirement from Central
Government Service. Born on 10th January, 1946, Shri Jayaswal obtained degree in
Electrical Engineering from the Bihar College of Engineering, Patna University in the
year 1967.
He joined at Badarpur Thermal Power Project as Technical Officer in the
erstwhile Central Water and Power Commission (Power Wing) Government of India
on 6th February, 1970 and was involved in erection activities of the Project. Later on,
he was selected to the Central Power Engineering Service through Union Public
Service Commission as Assistant Director and served in different capacities in the
Central Electricity Authority. He has vast experience which spans through Design,
Engineering, Testing and Commissioning of protection and control systems of HV/EHV
elements, Unit and Switchyard Control Boards, 6.6KV and 415 V switchgears for large
thermal power projects; feasibility report / project report, engineering and
implementation of small/mini/micro hydro power electric projects; financial and
commercial appraisal of power projects for according techno-economic clearance,
etc; Between 1986-96, he worked in the Northern Region Electricity Board and
handled operation and monitoring of northern regional electricity grid; grid incident
analysis and investigation, etc; He was a Member of an Enquiry Committee for
circulating water system failure leading to tripping of generating units at Singrauli STPS
of NTPC.
During 1997-2005, he worked in the Ministry of Power, Government of India as
Director and was responsible for all matters relating to operation of power facilities in
the country; allocation of power from central generating stations to State/UTs; cross
border exchange of power and energy tariff; guidelines for regulation of power and
power trading; coal linkages for utility power stations in the country; etc. He finalized
the Disaster and Crisis Management Plan for power sector in the country. He was
Member representing the Power Sector on the Central Team deputed by the
Government of India for assessment of damages due to natural calamities namely,
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Super Cyclone in Orissa in 1999, Earthquake in Gujrat in 2001 and Tsunami in
Andaman and Nicobar Islands in 2004.
He was a Member of seven member Indian delegation deputed by the
Government of India to Pakistan in the year 1998 for holding discussion at
Government level regarding exchange of power between the two countries. He was
also Member of Indian delegation to Nepal in the years 1998 and 2001 for holding
discussion regarding Indo-Nepal power exchange.
Shri Jayaswal had undertaken study tour to USA in 1991 for 10 weeks for study
in optimizing techniques in Load Despatch Stations under United Nation Fellowship
Programme. He also undertook study tours to USA and France in 2001 on Plant
Maintenance and Online Predictive Maintenance practices in thermal power
stations. He also attended course on promoting policy development and energy
market reforms in South Asia under United States Energy Association (USEA) / South
Asia Regional Initiative for Energy (SARIE) partnership programme, in Nepal in the year
2002.
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5. FUNCTIONS OF THE STATE COMMISSION
(1) The State Commission shall discharge the following functions, namely–
(a) determine the tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be, within the that
State: Provided that where open access has been permitted to a
category of consumers under section 42, the State Commission shall
determine only the wheeling charges and surcharge thereon, if any, for
the said category of consumers;
(b) regulate electricity purchase and procurement process of distribution
licensees including the price at which electricity shall be procured from
the generating companies or licensees or from other sources through
agreements for purchase of power for distribution and supply within the
State;
(c) facilitate intra-state transmission and wheeling of electricity;
(d) issue licences to persons seeking to act as transmission licensees,
distribution licensees and electricity traders with respect to their
operations within the State;
(e) promote congenration and generation of electricity from renewable
sources of energy by providing suitable measures for connectivity with
the grid and sale of electricity to any person, and also specify, for
purchase of electricity from such sources, a percentage of the total
consumption of electricity in the area of a distribution licence;
(f) adjudicate upon the disputes between the licensees, and generating
companies and to refer any dispute for arbitration;
(g) levy fee for the purposes of this Act;
(h) specify State Grid Code consistent with the Indian Electricity Grid Code
specified with regard to grid standards;
(i) specify or enforce standards with respect to quality, continuity
and reliability of service by licensees;
(j) fix the trading margin in the intra-State trading of electricity, if
considered, necessary; and
(k) discharge such other functions as may be assigned to it under this Act.
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(2) The State Commission shall advise the State Government on all or any of the
following matters, namely :-.
(i) promotion of competition, efficiency and economy in activities
of the electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the State;
(iv) matters concerning generation, transmission , distribution and
trading of electricity or any other matter referred to the State
Commission by State Government.
(3) The State Commission shall ensure transparency while exercising its powers and
discharging its functions.
(4) In discharge of its functions the State Commission shall be guided by the
National Electricity Policy, National Electricity Plan and National Tariff Policy
notified by Central Government under Section 3 of Electricity Act, 2003.
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6. POWER PROFILE OF THE STATE OF BIHAR
A Brief Overview of Bihar State Electricity Board (BSEB)
The BSEB is an integrated power utility responsible for generation, transmission
and distribution of electricity in the state of Bihar and is yet to be restructured
as per Electricity Act, 2003. BSEB is the State Transmission Utility and a deemed
licensee in the state for electricity distribution under the transitional provision as
enjoined in section 172 of the Electricity Act, 2003.
(i) Generation
Generation Capacity
The Bihar State Electricity Board has a total installed generation
capacity of 540 MW (all thermal). The Bihar State Hydro Electric Power
Corporation (BSHPC) has an installed capacity of 44.10 MW.
There has been no addition to thermal capacity over the last two decades,
only some small Hydro capacity has been added.
BSEB has two coal based thermal power plants. The details of plants are as
given in Table below:
BSEB – Installed Generation Capacity
S.N Name of Plant Capacity
(MW)
Date of
commissioning
Present status
1 Barauni TPS
320 MW
Unit-1
15MW
each
Have been
retired
Have been
retired Unit-2
Unit-3
Unit-4 50 MW 09.11.1969 Under shut
down since
24/04/96
Unit-5 50 MW 01.12.1971 Under shut
down since
15/03/95
Unit-6 110 MW 01.12.1984 Running
under
deteriorated
condition
Unit7 110 MW 31.03.1985
2 Muzaffarpur
TPS 220 MW
Unit-1 110MW 31.03.1985 Both units are
under shut
down since
October, 2003
Unit-2 110 MW 17.03.1986
Total capacity 540
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Though the installed capacity is 540 MW, most of the units are under shut down
for a long period and the actual generation has been very meager i.e. in the
range of 30-50 MW.
The Muzaffarpur TPS has been taken over by a joint venture company
comprising of NTPC & BSEB having holding of 51% and 49% respectively. The
joint venture company shall be taking up the R&M of the units and the units
are likely to become operational during the year 2007.
Capacity available from other sources
Besides availability of power from own power plants and BSHPC, the BSEB has
allocation from central sector generating stations and other sources as given
in Table below.
Allocation from central sector power stations as on 15/11/2005
S.N Station Capacity
(MW)
Share of
BSEB (%)
Share in
(MW)
NTPC
1 Farakka TPS 1600 22.68 362.88
2 Khalgaon TPS 840 39.40 330.96
3 Talchar TPS 1000 32.50 325.00
1018.84
NHPC
4 Rangit HPS 60 35.00 21.00
5 Chukka HPS (Bhutan) 336 (270 MW)* 29.63 80.00
101.00
6 Tala - @ (Bhutan) 1020 (867) 32.00 260.10
*capacity allocated to eastern region is 270 MW
@ Tala Hydro Electric Power Project has a capacity of 1020 MW (6X170MW);
share of Eastern Region is 85% (867 MW).
As per Ministry of Power Notification dated 7th July 2006, the share of Bihar in
Kahalgaon TPS is withdrawn to the extent power is made available to Bihar
from Tala Hydro Electric Power Project, similar to other states in Eastern Region.
The allocation from central generating stations is subject to minor adjustment
from time to time. In addition, the state draws about 100 MU in a year from
Nepal at 132 kV, 33 kV and 11 kV under a bilateral agreement.
No new generation capacity is under implementation or execution by the
BSEB.
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(ii) Transmission
Bihar has a transmission network of 220 kV & 132 kV transmission lines as
given in Table below:
Transmission Network (As on 31/03/2005)
Voltage Transmission lines
(Ckt. / km)
No. of Sub
Stations
Total Sub Station
capacity (MVA)
Number of
Transformers
*440 kV 75.00 - - -
220 kV 957.02 5 1300 11
132 kV 3648.71 44 2077.90 93
* charged at 220 kV
The existing transmission system is capable to meet a demand of about 1000
MW.
Major investments are required for augmentation of transmission system to
meet the future load growth.
(iii) Distribution
Distribution Network
Sub transmission and distribution network in the state is given in Table
below:
Distribution Network (as on 31/03/2005)
Voltage
Sub transmission /
Distribution lines
(CKt km )
No. of Sub
Stations
Transformer capacity
(MVA)
33 kV 5761.80 362 2544.46
11 kV 35053.77 35746* 2982915
LT lines 65859.81 - -
* Distribution Transformers
About 900 MW of power is distributed through 33 kV, 11 kV & LT Systems.
Consumer Profile
An overall view of the distribution end of the business, in terms of category-wise
number of consumers, their connected load, and the sale of electricity during
the Financial Year 2005 – 06 is given in Table below:
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Consumer Profile (2005 – 06)
Category No. of consumer /
connections
(as on 01/04/06)
(Estimated)
Connected
load (kW)
(Estimated)
Energy
consumption
(MU)
1. Domestic
i) Kutir Jyoti 270000 2700 58.30
ii) Domestic – I (Rural)
(unmetered)
490000 405000 235.20
iii) Domestic – II 750000 850000 964.50
2) Non Domestic
i) Non Domestic - I
(Rural Unmetered)
14500 12600 6.96
ii) Non – Domestic - II 124000 150890 90.53
iii) Non – Domestic – III 5400 52490 197.67
iv) Non – Domestic – IV 1700 9600 5.76
v) Non – Domestic - V 175 2250 1.08
3. Irrigation & Agriculture Service
i) Unmetered supply
ii) IAS – I 55500 157600
iii) IAS – II 2530 44300 1282.00
Metered supply
i) IAS – I - - -
ii) IAS – II - - -
4) Low Tension Industrial Service
i) LTIS – I - upto 25 HP 14502 89500 90.00
ii) LTIS – II - 25 to 99 HP 645 29500 41.00
iii) LTIS – III – upto 99 HP 783 24500 190.00
5. Street Lighting, Traffic Lighting and Mast
i) SS – I (Metered supply) - - -
ii) SS-II (Unmetered) 483 13095 23.00
iii) SS-III (Unmetered) 20 293 1.00
6) High Tension
i) 11 kV HTS – I 625 139400 295
ii) 33 kV HTS – II 14 21637 78
iii) 132 kV (EHT) 1 13500 59
iv)Specified service
(Induction furnaces) HTSS
13 61898 230
7. Railway Traction (RTS)
i) RTS – I – 25 kV 3 29500 375
ii) RTS – II – 132 kV 10 39500
Total 1730904 2179753 4224.00
The number of consumers and connected load given is stated to be estimated
as compilation of data has not been done by the BSEB.
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(iv) Transmission & Distribution (T&D) losses
The efficiency improvements in the Board are highly dependant on
bringing down the distribution losses. The distribution losses comprise technical
and commercial losses. Commercial losses being an euphemission for
pilferage as well as inefficiencies due to lack of 100% metering, defective
meters and inadequate systems and procedures for meter reading, billing and
revenue collection.
The reported T&D losses in BSEB system for 2005-06 are at 37%. This is not based
on measurement of losses in the system. It is only computed. It is the difference
between energy input and energy metered and energy assessed for
unmetered category of consumers. The actual distribution loss in the system
would be much higher. Power Finance Corporation has also assessed the
losses as per instruction of Govt. of India and the assessed loss is much higher
than the reported T&D loss. In the absence of any energy audit, it is difficult to
estimate reasonably the extent of energy losses, if the energy consumed by
metered categories are not measured and unmetered categories are not
reasonably assessed. It would also be necessary to segregate the Transmission
& Distribution losses and Technical & Commercial losses in order to initiate
remedial measures.
(v) Demand and Supply Position
The state has power shortage both in terms of demand and energy. The
state has little generation of its own and has to totally depend on the power
allocation from central sector generating stations. The power availability is not
adequate to meet the present demand and therefore the demand is
restricted to the availability of power. Further high T&D losses also contribute for
reduction in the availability restricting power supply further.
The details of energy demand and energy met for the BSEB system for
the years 2003 – 04, 2004 – 05 & 2005 – 06 are given in Table below:
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Energy balance
Energy sales
(MU)
2003 – 04
(Actuals)
2004 – 05
(Actuals)
2005 – 06
(estimated)
LT Sales 2775.51 2878.91 3187
Industrial HT sales 603.44 595.54 662
Railways 309.48 338.02 375
Inter state sales under UI charges 194.97 259.51 300
Total sales 3883.40 4071.98 4524
T&D losses
T&D Loss (%)
2026.903
(34.29)
2301.716
(36.113)
2657
(37.00)
Energy requirement 5910.303 6373.696 7181.00
Energy met by
Own generation 296.05 122.70 138
Purchase from central Stations &
Chukka
5202.347 5843.529 6703
BSHPC 42.297 39.631 40
Nepal 158.355 97.477 100
Addl. Drawl from the system 211.274 270.359 200
Energy Available 5910.303 6373.696 7181
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7. ACTIVITIES OF THE COMMISSION IN BRIEF
(A) Framing of Regulations :
Under Section 181 of the Indian Electricity Act, 2003, the State Electricity
Regulatory Commission is to make regulations consistent with the Act and Rules
generally to carry out the provisions of the Electricity Act, 2003. BERC made and
notified the following Regulations :
Sl.No. Name of Regulation Date of
Notification
Brief Description
(1) Delegation of Financial
Powers Regulation, 2005
08.07.2005 This deals with delegation of financial
powers to Chairman, Members and
Secretary of the Commission for
exercising financial powers in the
functioning of the Commission.
(2) Conduct of Business
Regulation, 2005
15.10.2005 This Regulation deals with the procedures
for conducting business of the
Commission, duties and functions of the
Secretary, the proceedings of the
Commission, Arbitration of disputes,
investigation, enquiry, collection of
information, review of decision, directions
and orders etc.
(3) Appointment of
Consultant Regulation,
2005
15.10.2005 This Regulation deals with the terms and
conditions for appointment of Consultant
by the Commission, which inter-alia
includes categorization, fees and other
charges, criteria for evaluation of
proposals for appointing Consultants
(Technical and Financial both). This also
includes the way in which individual
consultant can be engaged.
(4) State Advisory
Committee Regulation,
2005
27.10.2005 This regulation has been notified in terms
of Section 87(1) of the Electricity Act,
2003.This deals with the constitution of
State Advisory Committee, who will be
Members of the Committee, procedure
for convening meeting of the Committee,
fees and allowances payable to the
Committee members etc.
(5) Fees, Fines and Charges
Regulation, 2006
02.02.2006 This Regulation specifies the fees and
various charges to be accompanied with
different type of applications which are
submitted to the Commission, method of
payment of fees and charges. This also
deals with the deposit of fines/ charges
imposed by the Commission to any
generating company, licensee or
individual.
(6) Open Access
Regulation, 2006
20.05.2006 Notified in terms of Section 42 and 181 of
the Electricity Act, 2003. This describes the
procedure for availing non –
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discriminatory open access for the use of
transmission line or distribution system or
associated facilities with such lines or
system by any consumer or licensee or a
person engaged in generation. This also
deals with the functions of the agency
involved in this work, the charges,
surcharge and additional surcharge
payable by open access customer.
(7) Consumer Grievance
Redressal Forum and
Electricity Ombudsman
Regulation, 2006
20.05.2006 (i) In accordance to Section 42(5) (6) (7)
of the Act, this Regulation has been
framed which deals with the constitution
of Consumer Grievance Redressal Forum
by the distribution licensee, working of the
Forum, kind of grievances that can be
taken up by the Forum, procedure for
filing of grievance, grievance handling
procedure for the Forum.
(ii) It also specifies the conditions for
appointment of an Electricity
Ombudsman, functions of Ombudsman,
procedures for filing application against
the order of the Forum before the
Electricity Ombudsman etc.
(8) Procedure for preferring
appeal before the
Appellate Authority
Regulation, 2006
01.11.2006 Framed in terms of Section 126 and
Section 127 of the Electricity Act, 2003,
this specifies the form and the procedure
for prefering appeal by any person
aggrieved by final order of an assessing
officer appointed under Section 126 of
the Electricity Act, 2003 before the
Appellate Authority appointed by the
State Govt. under Section 127 of the Act
and also how the distribution licensee has
to report to the Commission about the
disposal of appeals.
(9) Levy and collection of
fees and charges by
SLDC Regulation, 2007
09.01.2007 Framed in terms of Section 31 of the
Electricity Act, 2003, this Regulation
describes the method under which
generating companies, licensees and
long term open access customers
requiring long term open access and
short term customers requiring short term
access shall submit an application to the
SLDC, quantum of fee payable by the
customers for using the system, its billing
and collection procedure etc.
(10) Standard of
Performance for
distribution licensee
Regulation, 2007
18.01.2007 In accordance with Section 181,57,58
and 59 of the Act, this Regulation
specifies the guaranteed and overall
standard of performance to be
maintained by a distribution licensee in
their operation relating to consumer
services and also compensation payable
by the licensee to the affected
consumer, in case of default in providing
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these services within specified time.
(11) Tariff Regulation, 2007 Feb.2007 Framed in terms of Section 45(2),61,63 of
the Electricity Act, 2003, this Regulation
deals with the terms and conditions for
determination of tariff for generating
companies, transmission licensee and
distribution licensee. This specifies various
formats in which the generating
company, transmission licensee and
distribution licensee should furnish
information along with the tariff petition
to the Commission for determination of
the tariff.
(12) Transmission Licence
Regulation, 2007
Framed in terms of Section 181,15,17, and
18 of the Electricity Act, 2003.This deals
with the terms and conditions for grant of
transmission licence, procedure for
making application for transmission
licence, issue of transmission licence,
format of transmission licence etc.
(B) Tariff Setting for Bihar State Electricity Board
One of the main functions of the Commission is determination of tariff for (a)
Supply of electricity by a generating company to a distribution licence (b)
Transmission of electricity (c) Wheeling of electricity and (d) retail sale of electricity by
virtue of the provision of Section 62 of the Electricity Act, 2003.
The Commission appointed M/s Administrative Staff College of India (ASCI),
Hyderabad as a Consultant for providing consultancy services for tariff setting and
providing assistance on other allied works including drafting of regulations, etc .
In that perspective the Commission has issued Tariff Order for retail sale of
electricity by the BSEB on 29th November, 2006. The details of Tariff petition/Tariff
Order are dealt herewith.
(i) Tariff Filing by Bihar State Electricity Board
The Bihar State Electricity Board, a deemed licensee filed a tariff petition
before the Commission on 10th April, 2006 for acceptance of Aggregate Revenue
Requirement (ARR) of Rs. 2870.60 crores for the financial year 2006-07 and seeking
revision of tariff of electricity for supply to the consumers to meet the aforesaid ARR of
20
Rs. 2870.60 crores. On scrutiny of the petition it was observed that the petition did not
contained necessary supporting data in respect of demand forecast, AT & C losses,
power purchase, revenue receipt and expenses, revenue arrears, details of
depreciation, interest on loan, audited accounts etc. The Commission
communicated its observation and deficiencies in the tariff petition to the Board vide
Commission’s letter no. 175 dated 06.05.2006. The Board vide its letter no. 452 dated
22.05.2006 submitted further data and information to the Commission, the contents of
which was discussed with the Board’s officials on 06.06.2006. After discussion, the
Board furnished further clarifications to the Commission vide their letter no. 507 dated
08. 06.2006 and 513 dated 13.06.2006, revising the Aggregate Revenue Requirement
which included State Government assistance of Rs. 720.00 crores in the form of grant
as resource gap and reducing the interest amount on State Government’s loans and
also the revenue receipt from Delayed Payment Surcharge. However, the Board did
not remove the deficiencies as noted in the tariff proposal as per revised ARR.
Accordingly the Board was asked by the Commission vide its letter no. 222 dated
12.06.2006 to make available required information based on the submission made by
the Board vide their letter dated 08.06.2006 and 13.06.2006 which was followed by
reminders dated 19.06.2006 and DO letter dated 03.07.2006 and 18.07.2006. The
Board instead of making available these information filed a revised petition on August
04, 2006 maintaining the original ARR of Rs. 2870.60 crores and revising the tariff
upwards.
The Commission nevertheless took the revised tariff petition filed on 04.08.2006
by the Board on record on 11.08.2006 and marked as Case No. TP-1 of 2006.
(ii) Publication of Tariff Petition
In accordance with the provisions of Section 64 (2) and 64 (3) of the Electricity
Act 2003, the Commission with a view to ensure transparency in the process of tariff
determination directed the Board to publish the revised tariff petition in an abridged
form and the same was published in the newspapers on 13.08.2006 and was also
posted on the website of the Commission and BSEB, inviting objections/ suggestions/
comments from stakeholders and general public. In pursuance thereof, seventeen
(17) numbers of consumers/ consumer’s organizations submitted their objections/
suggestions/ comments before the Commission within the due date i.e. 18th
September, 2006 .
21
(iii) BSEB’s Response on Objections/Suggestions/Comments
Bihar State Electricity Board submitted para-wise response on the objections/
suggestions/comments made by different stakeholders and the consumers, before
the Commission on 28.09.2006
(iv) Public Hearing on Tariff Petition
A public notice was published by the Commission on 10th October, 2006 in the
daily newspapers namely Times of India (English), Aaj (Hindi) and Dainik Jagaran
(Hindi) for holding public hearings on tariff petition of BSEB on 17th and 18th October,
2006. The objectors, BSEB and Energy Department, Government of Bihar were
informed through letters to participate in the public hearing.
Public Hearings were held on 17th and 18th October, 2006 in Shrikrishna
Memorial Hall, Patna. Besides the objectors who submitted the written objections/
suggestions/ comments on the tariff petition, others who wanted to participate in the
hearings were also heard.
Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.
22
Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.
Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.
24
(v) Tariff Order
The Commission took into consideration the facts, presented by the Board in its
various filings, the objections received from the consumer’s organizations and general
public and response of the Bihar State Electricity Board thereon, and after prudence
scrutiny determined the Aggregate Revenue Requirement (ARR) of Rs. 2214.16 crores
as against Rs. 2870.55 crores proposed by the Board. The tariff order was passed by
the Commission on 29.11.2006 in presence of representatives of the Board,
Consumers and Press. As the tariff was for FY 2006-07 so it was made effective on the
meter reading of 01.11.2006 onward which was to be billed in the month of
December, 2006.
The proposed and approved ARR is as detailed below :
Aggregate Revenue Requirement (ARR) Projected by BSEB and
Approved by the Commission (Rs. crore)
Sl.
No.
Particulars
2006-07 ARR Projected
by BSEB
ARR Approved by
the Commission
A Energy Available (MU) 8232 7401
B Energy sales (MU) 5268 4338
C T&D loss (%) 36 41.4
D Gross Expenditure
1. Generation cost 128.00 51.17
2. Power purchase cost 1438.90 1354.15
3. Employee cost 525.91 525.91
4. Administrative and General expenses 21.26 21.26
5. Repair and Maintenance cost 25.20 25.20
6. Interest and finance charges 600.38 192.72
7. Depreciation 170.90 83.75
E Less: Interest and other expenses capitalized (-)40.00 (-)40.00
F Other Appropriations - -
1 Provision for Bad debts and other debts - -
2 Income tax etc. - -
G Net Expenditure 2870.55 2214.16
H Less: Other income (-) 44.00 (-) 44.00
I Aggregate Revenue Requirement (G-H) 2826.55 2170.16
J Average cost of supply (Rs. / unit) 5.37 5.00
25
In the tariff petition, BSEB claimed a revenue gap of Rs. 1553.83 crores on the
existing tariff rate. However after taking into consideration the facts and figures on
record, the Commission approved a revenue gap of Rs. 184.78 crores only as
detailed below:
Revenue Gap (Rs. crore)
Sl.
No.
Item Claimed by
BSEB
Approved by
Commission
1. Aggregate Revenue Requirement 2870.60 2214.16
2. Less non-tariff income (-) 44.00 (-) 44.00
3. Revenue Requirement form sale of power 2826.60 2170.16
4. Revenue at existing tariff 1272.77 1265.38
5. Grant from State Govt. as Resource Gap - 720.00
6. Surplus (deficit) (4-3-5) (1553.83) (184.78)
Out of Rs. 184.78 crores revenue gap, the Commission decided to convert Rs.
60.00 crores into a Regulatory Asset and to recover balance Rs. 124.78 crores revenue
gap through tariff revision. The details of tariff prior to 1st November 2006, tariff
proposed by the BSEB for FY 2006-07 and tariff approved by the Commission w.e.f. 1st
November, 2006 are given in the Table below :
26
Tariff prior to 1st Nov. 2006 and proposed tariff by BSEB for 2006-07 and tariff approved by the Commission
Sl. No.
Category Tariff prior to 1st
Nov. ‘06 Tariff Proposed by BSEB Percentage
increase proposed by BSEB
Tariff Approved by the Commission
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charge Rs. kw/Hp/m
Energy Charge Paise/kwh
1 Kutir Jyoti (KJ)
i) Unmetered Rs.30/PM/ conn – Rs.107/ PM/ con – Rs. 35/m/conn X
ii) Metered MMC Rs.25/PM/ conn
50 P MMC Rs.40/PM per con
285 256.70% MMC Rs. 25/m/conn - Rural Rs. 35/m/conn - Urban
120 P/U - Rural 150 P/U - Urban
2 Domestic-Rural DS-I
Upto 2 KW
upto 1kW-Rs. 75/m 1kw to 2kw-Rs. 110/m
X
i) Unmetered Rs.62/PM/ conn – Rs.214/PM/ con –
ii) Metered – 245.20% First 50U -125 P/U 51-100 - 150P/U Above 100U- 170P/U MMC 1
st kw –
40U/m 2
ndkw – 20U/m
First 200 units – – – 285 P
Remaining units – –
MMC 40 units/month/ con
500 P X
3 Domestic Service (DS-II) All metered
Single phase Rs.25/M upto 4 kW Above 4 kW 3 Phase Rs.150/M
1-100 - 180 P/U 101-300 - 225 P/U 301 and Above 280 P/U MMC Rs.70 / M for load upto 1 kW and Rs.40/- for each additional kW.
Rs.100/m/kW 1-200 units-285 P/unit Above 200 units-500 P/U MMC
40 units PM for 1st kW
30 units PM for each additional kW
157.5%
Single Phase Rs. 30/conn/m Three Phase Rs. 180/conn/m
1-100 Units – 200 101-200 Units – 250 201-300 Units – 300 Above 300 Units - 370
4 Domestic Service (DS-III)
All units – 250 P MMC
Rs.70/M for load upto 1 kW and Rs.40/- for each additional kW
Rs.100/m/kW 1-300 units-265 P 301 and above 480 P/U MMC
40 units PM for 1st kW
30 units PM for each additional kW
92%
X
All Units – 275 MMC 1
st kw – 400
U/flat/m Addl. kw 20U/flat/m
27
Sl. No.
Category Tariff prior to 1st
Nov. ‘06 Tariff Proposed by BSEB Percentage
increase proposed by BSEB
Tariff Approved by the Commission
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charge Rs. kw/Hp/m
Energy Charge Paise/kwh
5 Non-Domestic Services (NDS-I)
Unmetered Rs.95/connection/M
– Unmetered
Rs.214/connection/m Metered
Rs.200/kW/M
Metered 1-200 units-300 P/U Above 200 units 500 P/U MMC
30 units /kW PM.
125.15%
(a) Unmetered i) upto 500 watt - Rs. 105/conn/m ii) Above 0.5kw to 1kw Rs. 120/conn/m iii) Above 1kw - 2kw Rs. 150/conn/m
No unit charge
(b) Metered 1-100 – 140P/U 101-200U – 160P/U Above 200U – 200P/U MMC upto 500W – 30U/m Above 0.5kw upto 1kw – 50U/m Above 1kw-70U/m No fixed charge
6 Non-Domestic Service (NDS-II)
Rs.125/kW or part/M 1-150 units-400 Above 150 units-440
Rs.200/kW/m
1-200 units-300 P Above 200 units-500 P/U MMC
50 units/kW/PM
19.5% Rs. 140/kw/m upto 4kw Rs. 170/kw/m Above 4kw
1-100U- 420P/U 101-200U – 450P/U Above 200U – 480P/U MMC 50U/kw or part thereof per month
7 Non-Domestic Service (NDS-III)
Rs.150/kW/M 0-150 units-400 P/U above 150 units- 440 P/U MMC 50 units/kW
Same as NDS-II
Same as NDS-II
19.5% Covered under NDS - II
8 Non-Domestic Service (NDS-IV)
Rs.120/kW/ m 1-100 units-190 P/U 101-300 units-250 P/U Above 300 units-290 P/U MMC
50 units /kW upto 4 kW 100/units/kW for above 4 kW.
Same as NDS-II Same as NDS-II 19.5% Covered Under NDS - II
28
Sl. No.
Category Tariff prior to 1st
Nov. ‘06 Tariff Proposed by BSEB Percentage
increase proposed by BSEB
Tariff Approved by the Commission
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charges Rs./kW/HP/month
Energy Charges Paise / kWH
Fixed Charge Rs. kw/Hp/m
Energy Charge Paise/kwh
9 Non-Domestic Service (NDS-V)
Rs.40/kW with minimum of Rs.150 / connection/m
1-100 units-200 P/U 101-300 units-250 P/U Above 300 units-300 P/U
Same as NDS-II Same as NDS-II 16% Separate tariff for Temples, Mosques, Churches, Gurudwaras, etc places of worship and crematorium & burial grounds.
Rs. 45/kw with min. of Rs. 165/conn/m
1-100U-210P/U 101-200U – 275P/U Above 200U-330P/U subject to min. monthly charge of 50U/kW or part thereof.
10 LT Industry Service LTIS-I
Rs.60/HP or part/m All units – 390 P/U MMC
70 units/HP/M
Rs.200/HP/M
All units – 285 P/U MMC
80 units/HP/M
23.43% Rs. 65/HP/m All Units – 415P/U MMC – 70 U/HP/m
11 LT Industry Service LTIS-II
Rs.80/HP/M
All units – 410 P/U MMC
70 units/H/P/m upto 79HP 100 units/HP/m for 80 HP to 99HP
Rs.250 / HP/M All units – 285 P/U MMC
100 units/HP/M
28.46% Rs. 85/HP/m All Units-430P/U MMC 100U/HP/m
LT Industry Service LTIS-III
All units – 280 P/U MMC
Rs.485 / kW/M
Rs.250 / HP/M 1-235 units – 430 P/U Above 235 units – 535 P/U MMC
235 units/HP/M
91.30% Rs. 85/HP/m All Units-300P/U MMC 165U/HP/m
Street Light Service SS-I Metered
Metered All units - 290 P/U
MMC
Same as per rate of Unmetered supply of
SS-II, SS-III
All units-535 P/U / PM
84.5% X All Units-300P/U MMC Ground Portayal –
160U/kw/m Municipality –
220U/kw/m Municipality Corp. – 280U/kw/m
29
Sl. No.
Category Tariff prior to 1st Nov. ‘06 Tariff Proposed by BSEB %age increase propose
d
Tariff approved by the Commission
Fixed Charges Rs.
Energy Charges Paise / Unit
Fixed Charges Rs.
Energy Charges Paise / U
Light point wattage
G.P. Nagar Palika / Municp.
Munici-pal Corp.
14 Street Light Service SS-II Unmetered
Light point wattage
For villages & town having population upto 10,000
Population between 10,000 & 1,00,000
For remaining towns/ cities
i) Upto 100 W Rs.55 Rs.60 Rs.65
ii) 101-250 W Rs.140 Rs.155 Rs.170
iii) 251-500 W Rs.280 Rs.300 Rs.325
Wattage Population upto 1 lakh
Population Above 1 lakh
i) for 100 W Rs.160/M Rs.170M
ii) upto 101-250W Rs.400/PM Rs.500/PM
216.23%
i)upto 100w ii) 101-250W iii)251-500W
Rs.60/m Rs. 150/m Rs. 300/m
Rs.65/m Rs. 165/m
Rs. 320/m
Rs.70/m Rs. 185/m Rs. 360/m
Above 500W pro-rata will be applicable item (iii)
15 Street Light Service (Mast) SS-III Unmetered
Wattage Population upto 10,000
Population between
10,000 and
1,00,000
Remaining
towns / cities
Above 250 W Rs.280/ bulb/PM
Rs.300/ bulb/PM
Rs.325 / bulb/PM
Minimum – Rs. 1000/month/mast
Population upto 1 lakh
Population above 1 lakh
Rs.2000 PM per mast.
Rs.2500 PM per mast.
21.74%
Above 250W Upto 500W
Rs.300/m
Rs. 330/m
Rs. 355/m
MMC pm
Rs.1500/m
Rs. 1650/m
Rs. 1775
Above 500W pro-rata will be applicable
Unmetered Metered
16 Irrigation and Agriculture Service IAS-I
Unmetered Upto 10 HP – Rs.75/HP/M Above 10 HP-Rs.80/HP PM
Metered As per Rural schedule All units at 70 P/U MMC Rs.50/HP/M As per Urban Schedule All units –290/unit MMC Rs.90/HP/M
Unmetered Supply Rs.723/HP/M Metered Rs.200/HP/M
Metered Upto 200 Units/HP PM 375 P Balance units 535 P MMC 140 units/HP/month
1622.31%
Fixed Charge
Rural feeder- Rs. 100/HP/m Urban Feeder Rs. 120/HP/m No Energy Charge
All Units
Rural feeder- 80P/U Urban Feeder 130P/U MMC Rural Rs. 75/HP/m Urban Rs. 120/HP/m No fixed charge
30
Sl. No.
Category Tariff prior to 1st Nov. Tariff Proposed by BSEB Percentage
increase proposed
Tariff approved by the Commission
Fixed Charges Rs.
Energy Charges Paise / Unit
Fixed Charges Rs.
Energy Charges Paise /Unit
Unmetered Metered
17 Irrigation and Agriculture Service IAS-II
Unmetered Rs.350/HP/M Metered Rs.100/connection/M
Metered All units – 100 P/U
Unmetered Rs.1206/HP/ PM Metered Rs.350/HP PM
Metered Upto 200 units-375 P Balance units-535 P MMC 225 Units/HP/M
Fixed Charge
Rural feeder- Rs. 420/HP/m Urban Feeder Rs. 450/HP/m No Energy Charge
All Units
Rural feeder- 150 P/U Urban Feeder 200 P/U MMC 225 Units/HP/m
18 High Tension Service HTS-I
Rs.125/kVA /M
All units – 178+244 =422 P MMC Energy charges based on LF of 25% and PF of 0.85% on contract demand
Rs.500 / kVA/M .
All units – 275 P/unit MMC Rs.1040/kVA of contract MD/ per month
2.19%
Demand Charge Energy Charge
Rs. 180/kVA/m Monthly minimum 85% of contract Demand
420 P/U Monthly minimum charge 30% L.F. 90% P.F.
19 High Tension Service HTS-II
Rs.115/kVA/M
All units – 172+244 =416 P/U MMC 30%LF
Rs.700/kVA/M MMC Rs.1390 / kVA of contract demand PM.
All units -266 P/U
16.29%
Rs. 175/kVA/m MMC 85% of Contract Demand
420 P/U MMC 35% L.F. 90% P.F.
20 High Tension Service HTS-III
Rs.110/kVA/M
All units 169+244 = 413 P/U MMC 50%LF
Rs.1000/kVA/M MMC Rs.1755/kVA of contract demand/PM.
All units-230 P/U
19.89%
Rs. 170/KVA/m MMC 85% of Contract Demand
415 P/U MMC 50% L.F. 90% P.F.
21 High Tension Specified Service HTSS
Rs.700/kVA/M
All units -120 P/U MMC Rs.1012 per kVA of contract demand PM
Rs.900/kVA/M MMC Rs.1552/kVA of contract demand/PM.
All units-225 P/U
25.57%
Rs. 750/kVA/m MMC Rs. 1101/kVA/m
All Units 135 P/U
22 Railway Traction Service (25 kV) RTS-I
Rs.140/kVA/M
All units-200+244= 444 P/U MMC 25%LF
Rs.300/kVA/M
All units-400 P/U MMC 260 units/kVA/M 1.56%
Rs. 160/kVA/m MMC 85% of Contract Demand
444 P/U MMC 25% L.F.90% P.F.
23 Railway Traction Service (132 kV) RTS-II
Rs.140/kVA/M
All units-194+244 = 438 P/U MMC 25%LF
Rs.300/kVA/PM
All units-415 P/U MMC 260 units /kVA/ PM
(-) 1.07%
Rs. 160/kVA/m MMC 85% of Contract Demand
438 P/U MMC 25%L.F. 90% P.F.
31
(vi) Directives given to BSEB in Tariff Order
It was observed from the tariff petition of the Board that its operational and
financial performance requires considerable improvement at all levels in reducing
T&D losses and costs, and also increasing efficiency on part of the licensee, and in
order to improve the quality of supply of electricity and service to the consumers in
the State significant initiatives are required to be taken by the BSEB. In that
perspective the Commission issued 33 directives to the BSEB for improving the quality
of services to the consumers, and for increasing the efficiency in the BSEB operations.
DIRECTIVES
Directive-1: Cent Percent Metering Henceforth no electricity connection will
be released to any category of consumer
without a meter by the Board. Action plan
to be submitted by 31st March 2007 for
cent percent metering.
Directive-2: Replacement of Non-
Functional / Defective
meters
BSEB shall report the number of non-
performing / defective meters category-
wise in the system as on 30.11.2006 along
with an action plan to replace them and
the report must be submitted by 31st
January 2007 to the Commission
Directive-3: Setting up of
Independent Third Part
Testing Arrangement
BSEB should put in place an accredited
independent third party meter testing
arrangement in all districts under its
licensed area and also prepare norms for
allowing consumers to purchase their own
meters duly tested and certified by such
third party testing agency so that scope
for consumer complaints is minimized and
complaints that arise are settled
expeditiously to the satisfaction of the
consumers without the need for any
recourse to consumer forum
Directive-4 Efficient Meter
Reading, Billing and
Collection
The collection efficiency shall be
improved from the present level of 85% to
cent percent as early as possible
Directive-5: Meter Reading of HT
Services
BSEB shall issue suitable instructions in this
regard immediately and the Board shall
also review the percentage of checked
readings and take action in case of
variation between normal meter reading
read by meter reader and the check
meter reading taken by the officers of the
Board.
Directive-6: Replacement of old
Electromagnetic
Meters with Static
Meters
A report on the status of metering, type of
meters provided in HT and other high
value LT installations along with a
programme for replacement of such
meters with static meters shall be
submitted to the Commission by 31st
January 2007.
32
Directive-7: Reduction of
Transmission and
Distribution (T&D) Losses
A long term action plan for reduction of
T&D losses for both technical and non-
technical with relevant load flow studies
be chalked out and submitted to the
Commission by March, 2007.
The Board should ensure reduction of the
T&D losses to 38% during FY 2007-08 and
34% during FY 2008-09.
Directive-8: Energy Audit and
Demand Side
Management
BSEB to replace all such meters and
provide correct meters on all feeders from
220KV to 11KV level as well as LT side of
the distribution transformer on highest
priority
The energy audit should be taken up first
in all the towns with a population of fifty
thousand and above. The first status
report on the action taken for energy
audit in all the towns should be reported
to the Commission by 31st March, 2007 to
issue further directives in this regard, if
required.
Directive-9: Pilferage of Electricity BSEB to activate the organization to curb
the pilferage of power within the premises
as per provisions of Indian Electricity Act
2003 and also the Indian Penal Code. A
task force is to be constituted in different
zones to which the entire licensee area is
to be divided to carry out massive raid to
arrest pilferage. In case of detection of
such theft/pilferage, the concerned
authority of the area and personnel
attached to them, who have duties to
supervise the work, have to be made
answerable for punitive action. Those
found committing mischief of pilferage
should be booked and penal action
should visit them
Directive-10: Enumeration of
Agriculture Pump sets
and other Service
Connections
A report on the action taken to get
agricultural and other connections
enumerated to identify the unauthorized
connection and to regularize them shall
be placed before the Commission by 30th
June, 2007.
Directive-11: Assessment of
Agricultural
Consumption
The BSEB shall come out with an action
plan for this job by 31st March 2007 to be
placed before the Commission and
pursuant thereto the action taken on the
plan shall also be made available to the
Commission by 31st July 2007.
33
Directive-12: Regulations of Power
Supply to Rural Areas
The supply could be regulated, each 11
kV feeder or a group of feeders can have
the supply for a specified hours in a day
by rotation. The hours during which power
supply would be available shall be
notified to the consumers under each
feeder.
The Board may study the practices being
followed in other States and drawout a
scheme to regulate power supply to rural
areas, particularly, to agricultural
pumpsets, and submit such a scheme to
the Commission for consideration and
approval by 31st March 2007.
Directive-13: Quality of Power Supply
and Service to
consumer
The Board shall submit its scheme to
strengthen the transmission & distribution
systems to the Commission by 31st March
2007.
The Board shall also establish service
centres in all the towns to attend to
consumer complaints on interruptions to
power supply, billing etc in order to
improve service to consumers in all major
towns to start with. The measures taken by
the Board in this regard shall be reported
to the Commission by 31st March 2007.
Directive-14: Management
Information System
The Board to take urgent steps to build a
credible and accurate database and
management information system with
unbundled costs and expenditure of the
three businesses of the Board viz.
Generation, Transmission and Distribution
to make information available on
operational and financial issues and get
such data updated on monthly basis.
Advantage of IT must be taken to institute
the MIS. Action must be taken urgently on
this and the action taken shall be
reported to the Commission by 31st
March, 2007. Care must be taken to see
that the next tariff petition is supported by
an accurate and credible database.
Directive-15: Annual Accounts of the
BSEB
The Board shall accord highest priority
and ensure that the accounts of the FY
2002-03, 2003-04 and 2004-05 are duly
audited by Accountant General, Bihar by
March 2007. BSEB should file the ARR tariff
petition for the next year supported with
audited accounts.
Directive-16: Arrears The outstandings from the State
Government Departments, Government
Undertakings, local bodies and private
parties shall be furnished by 31st January,
2007.
34
Directive-17: Collection of Arrears The Board should submit the details of
recovery of arrears under the first OTS
announced in April '06 and also the
recovery under the second OTS scheme
in force from October '06 onwards in
format given. The first report shall be
submitted by 31st January '07 and the
second report after the scheme is over in
March 07.
Directive-18: Asset Register The Board shall maintain separate asset
registers for the 3 business viz. Generation,
Transmission and Distribution. If such,
registers are available, the same may be
submitted to the Commission. In case
such registers are not available the same
may be got prepared by July, 2007.
Directive-19: Time of Day (ToD) Tariff Such plan shall be submitted to the
Commission along with next tariff petition
Directive-20: Recovery of Fuel Price
Adjustment from
Consumers Paying
Monthly Minimum
Charges
The BSEB shall submit a factual report in
the matter to the Commission by 31st
January 2007.
Directive-21: Fuel and Power
Purchase Price
Adjustment
A formula is approved by the Commission
for adjustment of any increase/decrease
in fuel prices and power purchase price.
Any adjustments in the Fuel/Power
purchase costs, the additional cost to be
recovered from consumers or to be
refunded shall be got approved by the
Commission on furnishing all relevant
details and data required to enable
proper calculation.
Directive-22: Adjustment of Payment
of Current Bills against
Delayed Payment
Surcharge (DPS)
The issue shall be examined in detail and
a report on the procedure followed shall
be submitted to the Commission by
31stJanuary 2007 in order to enable the
Commission to make a study of the issue
and issue necessary directions in the
matter.
Directive-23: Organizing Operational
Circles as Cost Centres
The Board to drawout an action plan to
organize the cost centers upto division
level to make them accountable for their
performance and submit it to the
Commission by 31st March 2007.
Directive-24: Performance of BSEB
Generating Stations
and their Parameters
The Board shall submit a detailed report
on the current status of R&M and
restoration of generating units at both the
power stations along with report on action
taken about performance parameters of
its generating stations by 31st January,
2007.
Directive-25: New Generation
Projects
BSEB to expedite the process of setting up
of new generation projects in the State
and submit quarterly progress report on
the same to the Commission. The first such
report shall be submitted in April 2007.
35
Directive-26: Employee Cost As per information made available by the
BSEB, the employee cost of BSEB is high
which stands at about 40% of the total
revenue income from sale of power at
existing tariff. It works out to be around
120 paise per kWh of energy sold,
whereas, in other states, even where the
State Electricity Board has not been
restructured, it is of the order of 60 paise
per kWh of energy sold. There is no
infrastructure in some crucial and
important activities whereas there is
excess staff in some departments which
are not so significant. The BSEB is directed
to enforce economy and austerity
measures in their operations and take
urgent steps to reduce establishment cost
by utilizing the existing man-power
optimally imposing restrictions on creation
of post, introducing revised work load
norms and also reducing posts which are
not significant BSEB shall set up a
committee to suggest and recommend
deployment of existing manpower to
achieve optimum utilization of available
work force.
BSEB shall also to identify the surplus staff
and deploy them after proper training, in
the areas of customer service, such as
meter reading, billing and revenue
realization, so as to provide better service
to the consumers.
A report on the action taken may be sent
to the Commission by 30th June 2007.
Directive-27: Energy Conservation All categories of consumers should be well
apprised of the newly developed latest
energy conservation devices so that the
energy conserved can be utilized for
more productive purposes and in
consonance with direction issued by the
Ministry of Power, Government of India, it
shall be made mandatory to use ISI mark
motor pumpsets, power capacitor,
foot/reflex bulbs in all new connections in
agriculture sector.
Directive-28: Investment Programme A quarterly progress report on major
investment works should be furnished
regularly to the Commission and the first
such report for quarter ending March,
2007 be submitted in April 2007.
Directive-29: APDRP Scheme The status of implementation of these
schemes, amount utilized upto 31st
December, 2006, the benefits accrued by
way of increase in metered sales,
reduction of distribution loss, improvement
in quality of supply, revenue etc. shall be
reported to the Commission by 31st March
2007.
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Directive-30: Registered and
Effective Consumers
The services of consumers which are not
live for more than three months should be
given notice for clearing the arrears and
getting the supply restored within a
specified time. If they fail to do so, the
connection of these consumers shall be
dismantled and action taken to realize
the dues. Such services shall be closely
monitored by the Board and stringent
action under the provisions of the
Electricity Act, 2003 against such
consumers be taken who are availing
supply. The service connections having no
dues and not willing to take reconnection
should be removed from the books
immediately. A report on the action taken
shall be sent to the Commission by 31st
March, 2007.
Directive-31: Cost of Supply and
Cross Subsidy
BSEB shall carry out the study to ascertain
voltage-wise and consumer category-
wise cost of supply for better tariff design
and submit the study report to the
Commission within a period of six months.
Directive-32: Restrictions on
Consumption of Energy
The Board shall educate the consumers to
cooperate with the Board in restricting the
use of electricity by voluntary effort.
Directive-33: SCADA and Data
Management
A report on implementation of SCADA
and data management scheme should
be submitted by the Board for approval
by the Commission by March, 2007.
(C) Suo-motu Proceeding 1/2006
The State of Bihar has been facing massive shortage of electricity since last few
years which can be mainly attributed to insignificant generation of power in the
State. The Bihar State Electricity Board (BSEB) is undertaking load shedding in urban,
agricultural and industrial conglomeration which has added to the sufferings and
miseries of the power consumers which become prominent in the summer season.
Demand has outstripped available supply by margin of about 250-300MW during
peak hours. If the estimated demand supply gap of around 250-300MW during peak
hours in the summer season is not bridged, then load shedding shall become
inevitable which is most inefficient way of rationing scarce resource. The alternate
measure is to explore the possibility to avoid frequent load shedding and shutdown.
Though he Commission had asked the Bihar State Electricity Board to apprise the
Commission about the principles and protocols of the load shedding, the response
made by the Board is not only perfunctory but also evasive. Like-wise no new statistics
have been made available to the Commission about all zones which enjoy immunity
to load shedding.
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Sharing feelings and anxieties of the consumers from prolonged power cuts
throughout the State particularly during summer season and also regard been had to
some allied issues, the Bihar Electricity Regulatory Commission instituted a Suo Motu
proceeding calling upon the BSEB, the Licensee in the State, to apprise the
Commission about these issues which include transmission and distribution losses
which according to statistic furnished by the Board its was 37.69% during the year
2004-05. As for AT&C losses, its magnitude was as per information received by the
Board was 46.38%. That apart the Board in its affidavit acknowledged that these
figures made available to the Commission about T&D and AT&C losses were
estimated figures as metering at appropriate levels were not being done at present.
The Board further acknowledges that since there was no metering, technical and
commercial losses could not be segregated and the Commission felt that the whole
purpose for asking these information are lost, true picture being not before the
Commission about extent of losses suffered by the Board in transmission and
distribution system. Since Transmission and distribution losses were exceedingly high,
the Commission felt that efficient and co-coordinated action to develop an
integrated power system in the State was to be given high priority.
(2) Since the pilferage of electricity by various category of consumers by illegal
tapings from electric poles, tampering of meter is also causing enormous loss of
revenue to the Bihar State Electricity Board, the Commission feels that there is urgent
need to launch an extensive drive to remove illegal connection, meter tampering
and also to keep constant vigil on them. The Commission with a view to take stock of
the situation sought following information :-
(i) Whether random periodical raids are being conducted in rural and
urban areas and also what had been the result.
(ii) Whether there is any plan chalked out by the B.S.E.B. to check pilferage
of power in the rural and urban areas.
It need not be emphasized that no reform can succeed in the midst of large
pilferage on continuing basis. It is a matter of common knowledge that the pilferage
of power is to the extent of about 1/3rd of total power either generated and / or
procured from other sources. The need of the hour is to totally curb the pilferage of
power within the premises of provisions of Indian Electricity Act 2003 and also the
Indian Penal Code. It was directed by the Commission that a task force be
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constituted in different zones to which the entire licensee area is to be divided to
carry out massive raid to arrest pilferage. It also directed that a foolproof mechanism
should be developed to monitor the revenue collection and raising of bills of the
consumers as pilferage of power by a set of person makes bonafide consumer
vicariously liable to compensate the loss suffered by the licensee as there liability is
shifted to them.
(3) New Electricity Connection and Replacement of Transformer
Assuming that Bihar State Electricity Board must have laid down a time
schedule for providing electricity connection against application by new consumers
as well as repair / replacement of defective transformers and there being need to
have a foolproof mechanism in position to ensure adherence to such time schedule,
certain informations were sought from the Bihar State Electricity Board. However, the
Commission felt distressed to notice that the statistic made available to the
Commission were not encouraging. It was desirable that for breakdown and
replacement of transformers a well equipped mobile van should be available at the
various power sub-stations to attend the complaints and rectify the snag. If required
inbuilt crane in the van to lift the transformer to the post and replace it with new one
may be equipped.
The statistic made available to the Commission by the Board unmistakably
shows that the total application received during nine months from April 2005 to
December, 2005 were 1, 02,588 out of which only 72,727 number of applicants were
provided with service connection as per time schedule and the rest 29,861 number of
applicants were yet to get service connection. The statistic further shows that about
7659 number of applications were pending for more than a year for provision of
service connection. Though the authenticity of these statistic in absence of other
reliable data cannot be questioned, the correctness of these figures even if it
considers to be true shows a horrible picture. Similar was the case about number of
defective transformers which remained out of service for more than a year. The
Commission reiterated that failure of the licensee to make provision of service
connection to an applicant within one month of receipt of application shall be in
violation of the mandate of Section 43 of the Electricity Act. As for reasons of high
power deficit, one of its causes attributed is unmetered supply of power. Section 55 of
the Electricity Act 2003 stipulates that no licensee shall supply electricity after expiry of
2 years from the date of its enactment except through installation of a correct meter.
39
One must also be aware that in the matter of meter reading and billing of consumers
by the utility, there exists considerable consumer dissatisfaction. As such the
Commission felt that there is an imperative need to raise the level of consumer
satisfaction. Consumers groups must be actively involved in the entire process and
3rd party arrangement for random checking of meters be introduced.
(4) Faced with such power scenario in the State which characterizes prolonged
power cuts and shutdown, new avenues are to be explored to ensure equitable
distribution of power to all and to avoid the possibility of frequent load shedding. The
National Electricity Policy stipulates that there is a significant potential of energy
saving through energy efficiency and Demand Side Management (DSM) measures.
The Commission accordingly in exercise of power under Section 23 of the Electricity
Act, 2003, to ensure regulation of supply, distribution, consumption or use of power,
suggested a number of load regulation measures which include all residential and
commercial consumers consuming more than 300 units per month to reduce their
monthly consumption to a level of 80% of their consumption in the preceding month
of the current year. The Commission has not apprised by the Board about follow up
measures taken by Board to ensure adherence to the direction issued by the
Commission. The Commission yet feels that if one does not have adequate resource
to cater to the requirement of vast masses, rationing is the only option in a welfare
state where everyone has equal right for use of scarce commodity. Since some of
these issues are being monitored through directives contained in the Tariff Order, the
Commission has confined itself to these issues. The Commission has also forwarded a
road map to the Board to carry out energy audit. These issues are being monitored
by the Commission through periodical reports to be submitted by the Board.
(D) Proceeding in G.C.No.1/2006–Anustha Devi Vs. Bihar State Electricity Board.
The apathy of the Licensee to kindle light in the hamlet of the petitioner led the
petitioner to knock the door of the Commission taking recourse to provisions of
Section 129 of the Electricity Act, 2003. However, the claim of the petitioner was
defeated by the licensee on the grounds that there was outstanding arrear in the
name of the erstwhile consumer to whom the petitioner had succeeded. The
Commission after due hearing felt that the claim of the petitioner could not have
been delayed in making provision of electricity supply on untenable grounds which
were also unethical particularly when affidavit was shown by the Petitioner that in no
way the vender was related to him or she had any trade transaction with him. In Isha
40
Marbles case, the claim of Wax Pol Industries and Another was rejected by the
Hon'ble Supreme Court as in fact ownership of the firm was transferred to no other
entity and the directors of the Company were more or less the same persons. The
petitioner was a bonafide purchaser from other and hence liability of a neighbour to
pay past arrears of the Board could not have been fastened to her. Though it was
brought to the notice of the Commission that during pendency of the proceeding
service connection had been provided to the petitioner, the Commission felt that it
was not a charity nor philanthropic act of the Licensee as it is obliged under statute
to provide electricity connection to the person who approaches it with bonafide
claim.
(E) Review Petition No. 1/2006
Pursuance to issuance of Tariff Order by Bihar Electricity Regulatory
Commission on 29th November, 2006 four set of review petitions purported to be
under Section 94 (1[f]) of the Electricity Act, 2003 came to be filed by ARC Welding
440 Vidyut Upbhokta Sangh, Secretary, Bihar Industries Association, President, Patna
City Vyapar Mandal and Bihar 440 Vidyut Upbhokta Sangh. The upshot of the
grievance of the petitioners is imposition of the AMG/MMG/Fixed charges in the tariff
order which is a constraint on the consumers particularly LT and HT consumers,
without taking into consideration the inadequate and erratic supply of electricity by
the Board. The grievance of the petitioners was unnecessarily loaded with these
components. The petitioners moved this Commission to make the Energy Department
and Industry Department, Government of Bihar and also Bihar State Electricity Board,
all respondents, to make them answerable as to why MMC charges, pursuant to
declaration of the Industrial Incentive Policy of the State Government which was duly
adopted by the Board was not reflected or incorporated in the tariff proposal
submitted to the Commission. The Commission felt that as per provision enjoined
under Section 108 of the Electricity Act, 2003 in discharge of its functions, the State
Commission shall be guided by such directions in matters of policy involving public
interest as the State Government may give to it in writing. Though revised tariff
proposal was submitted by the Board, no communication was ever made either by
the Government of Bihar or by Bihar State Electricity Board to the Commission about
such policy of the State Government. If such communication was not made by the
Commission, the Commission cannot be faulted for not incorporating the exemption
factor in respect of MMG/AMG in the tariff order. Now the significant question as to
41
whether consumer would be left in lurch for no fault on their part. Yet there is remedy
and there is light at the end of tunnel and here we may quote the provisions of
Section 65 of the Electricity Act, 2003 which enjoins that the State Govt. can grant
subsidy to any consumer or class of consumers in the tariff determined by the State
Electricity Regulatory Commission under Section 62 of the Act. It is option of the State
Government to subsidize or not to subsidize. If expectations of the industrial
consumers has become high following pronouncement of Industrial Incentive Policy
granting exemption, such consumers from payment of MMG/AMG for a period of 5
years, such consumers feel aggrieved availing not such benefits and instead the
Commission imposing MMC on them, then who will treat the injury inflated on them. It
seems to us that the State Government would not be indifferent and impervious to
the grievance of the petitioners if gain of the Industrial Incentive Policy is to reach the
prospective beneficiaries. Healing touch must be applied by the State Government
which is the sole authority in the matter of grant of subsidy.
(F) Consumer Interest – Establishment of Consumer Grievance Redressal Forum
The Commission is committed under Section 42, 57-59, 110, 111, 126-128 and
146 of the Electricity Act, 2003 to protect the interest of the consumer in
determination of tariff and framing regulations, establishment of grievance redressal
for a and electricity ombudsman, payment of compensation by the licensee for
failure to meet guaranteed standard. Noticing delay in constitution of Consumer
Grievance Redressal Forum by the licensee in pursuance of Section 42 (5) of the
Electricity Act, 2003, the Bihar Electricity Regulatory Commission took up the matter in
a proceeding of Anustha Devi Versus Bihar State Electricity Board and issued a
direction to the Board to constitute the said Redressal Forum as required under the
Act and the Regulations framed by the Commission. It was a matter of satisfaction
that this salutely resulted and the said Forum was constituted by the Board in the
month of August, 2006 which is situated in Vidyut Bhawan Complex in ground floor in
Vidyut Bhawan-II and has been functional since then.
The Consumer Grievance Redressal Forum has received 99 nos. of grievance
from the consumers since inception of the Forum, out of which 50 nos. has been
disposed of upto 31.03.07
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8. MISCELLANEOUS
(A) Annual Statement Of Accounts
The Commission prepares its budget and forwards the same to the
Government of Bihar and the Govt. releases fund in the form of grant in aid in favour
of the Commission. The annual Statement of Accounts for the year 2005-06 (27.07.05
to 31.03.06) has been got audited by a Chartered Accountant. The report of the
Chartered Accountant is given at Annexure-1. The Office of the Accountant General,
Bihar also audited the Statement of Accounts for the years 2005-06 and 2006-07 in
April 2007.
(B) Officers and Staff
The Commission has engaged 4 officers 12 staff in all categories and one
Consultant on contract basis as on 31.03.07 to assist in the working of the
Commission.
(C) Training / Participation in Workshop, Meeting of Forum of Regulators (FOR) &
Forum of Indian Regulators (FOIR)
The Chairman, Members and other officers of the Commission have been
attending the Meetings/Seminars/Workshops/Conferences organized by the Forum of
Regulators / Forum of Indian Regulators, Ministry of Power, NTPC, etc.