CASE NO.62/2001 & 10/2002

Present : Shri D. C. Sahoo, Chairman
           Shri H.S. Sahu, Member
           Shri B.C. Jena, Member

Date of Hearing : 23.03.2002
Date of Order : 19.04.2002

IN THE MATTER OF  An application for approval of Revenue Requirement for the FY 2001-02 and for Retail Supply Tariff and charges for FY 2001-02 under Section 26 of Orissa Electricity Reform Act, 1995.


For approval of Annual Revenue Requirement for financial year 2002-03 under Section 26(4) of the Orissa Electricity Reform Act 1995 read with condition 21.1 of the Orissa Retail Supply License 1997 (No.2/97).


Order on Distribution and Retail Supply Tariff and approval of Revenue Requirement for FY 2001-02 & 2002-03 for CESCO (Case No.62/2001 & 10/2002)

  1. Procedural History

  2. Legal Objections as to the maintainability of the Cases

  3. CESCO's Proposal

  4. Objections during hearing

  5. Clarification sought by Director (Tariff), OERC

  6. CESCO's reply to the objectors

  7. CESCO's reply to Director(Tariff)

  8. Commission's observation and analysis of licensee's proposal

  9. Scenario of the power sector reform in Orissa

  10. Restructuring of the Power Sector

  11. Strategies for improvement of power sector

  12. Depreciation of DISTCOs

  13. Reasonable Return

  14. Treatment of Working Capital

  15. T & D Loss

  16. Method of determination of Power Purchase

  17. Determination of expected revenue

  18. Collection efficiency of DISTCOs

  19. Summary of revenue requirement of DISTCOs for FY 2001-02 & 2002-03

  20. Operating Expenses

  21. Employees Cost

  22. Repair & Maintenance Expenses

  23. Administration & General Expenses

  24. Interest on Loan

  25. Interest Capitalised

  26. Depreciation

  27. Bad & Doubtful Debt

  28. Other expenses

  29. Previous Loss

  30. Contribution to contingency reserve

  31. Other special appropriation permitted by OERC

  32. Capital Base

  33. Receipts against consumers contribution

  34. Original cost of Work in Progress

  35. Investment under Para IV

  36. Working Capital

  37. Average Cash and Bank Balance

  38. Accumulated Depreciation

  39. Loans and Bonds

  40. Consumers' Security Deposit

  41. Reasonable Return

  42. Miscellaneous Receipt

  43. Revenue requirement, Reasonable Return and Clear Profit

  44. Tariff Issues

  45. Tariff Hike

  46. Wheeling Charges

  47. Load Factor Billing

  48. Incentive for maintaining high power factor

  49. Incentive for prompt payment

  50. Metering of street lights

  51. Multi -year Tariff

  52. Consumer Service

  53. Construction Power

  54. Observation for over-drawal penalty clause

  55. Observation for incentive for higher consumption

  56. Treatment of past losses

  57. Demand charge during statutory power-cut

  58. Meter rent

  59. Quality of supply and service

  60. Un-authorised and illegal abstraction of electricity

  61. Rural Electrification

  62. Special tariff for Power Intensive Industries

  63. Emergency power supply to CPPs

  64. Corrective measures and alternative calculation of revenue requirement

  65. Expected revenue from charges

  66. Tariff revision proposal

  67. Annex- A1       Revenue Requirement for FY 2001-02

  68. Annex -B1       Calculation of Capital Base and Reasonable Return for FY- 2001-02

  69. Annex -C1       Calculation of Clear Profit for FY- 2001-02

  70. Annex -A2       Revenue Requirement for FY 2002-03

  71. Annex -B2       Calculation of Capital Base and Reasonable Return for FY - 2002-03

  72. Annex -C2       Calculation of Clear Profit for FY 2002-03

  73. Annex - D1     Tariff effective from 1st February, 2001

  74. Annex - D2     CESCO's Tariff revision proposal for FY 2001-02

  75. Annex - D3     Tariff schedule for FY 2002-03

M/s Central Electricity Supply Company of Orissa Ltd., Janpath, Bhubaneswar (CESCO, in short), the holder of The Orissa Distribution and Retail Supply Licence, 1999 (No.1/1999) has submitted two applications u/s 26 of the Orissa Electricity Reform Act, 1995 (Reform Act, 1995, for short) in respect of its Revenue Requirement and Tariff for Retail Supply of electricity for different categories of consumers. Its application for determination of Tariff for the Financial Year 2001-2002 has been registered as Case No.62/2001 and application for Revenue Requirement for the Financial Year 2002-2003 has been registered as Case No.10/2002. Both the Cases being inter-related to each other have been heard analogously and are being disposed off by this common order.