| 8.0 | DETERMINATION OF TARIFF | 
  
    | 8.1 | The determination of tariff by the Commission has
    been done after examination of all details based on the records submitted by the Licensee,
    written and oral representations of the objectors and after duly consulting the Commission
    Advisory Committee. In addition to this the Commission also gave due consideration to the
    comments and observations made by various national and international authorities on the
    tariff orders earlier issued by the Commission as well as suggestions and complaints
    received from the actual electricity users of Orissa during the past years. | 
  
    | 8.2 | The tariff structure that this Commission
    inherited was a highly distorted one and like the past years the Commission this year has
    also tried to further rationalize the tariff structure so as to ensure that there is a
    progressive increase in the rate of tariff for those who are paying less than the average
    cost of supply. The Commission has been taking steps for rationalization of tariff i.e.
    gradually adopting a uniform rate for all consumer categories using electricity on the
    same voltage of supply which is a good measure of the cost of supply. The Commission
    considers it reasonable to determine tariff and charges as in the following paragraphs. | 
  
    | 8.3 | The tariff structure as it exists for different
    voltage of supply are summarized. | 
  
    | 8.3.1 | LT supply upto 100 KW/110 KVA :Kutir Jyoti consumers : Monthly Fixed Charge (Rs./ Month)
 Other classes of consumers :
 
      (a) Energy Charge (Paise/unit)(b) Monthly Minimum Fixed Charge (MMFC) (Rs./KW/ Month)
 | 
  
    | 8.3.2 | LT supply with connected load 110 KVA and above
    : 
      a) Demand Charge (Rs./KVA)b) Energy Charge (Paise/unit)
 c) Customer Service Charge (Rs./Month)
 | 
  
    | 8.3.3 | HT Consumers : 
      a) Demand Charge (Rs./KVA, Rs./KW)b) Energy Charge (Paise/unit)
 c) Customer Service Charge (Rs./Month)
 | 
  
    | 8.3.4 | EHT Consumers : 
      a) Demand Charge (Rs./KVA)b) Energy Charge (Paise/unit)
 c) Customer Service Charge (Rs./Month)
 | 
  
    | 8.3.5 | DC Services :Same as LT Supply for
    consumers with CD less than 100 KW | 
  
    | 8.3.6 | Consumers covered under two-part tariff are not
    required to pay the MMFC but are to pay Demand Charge and Customer Service Charge.
    Consumers covered under single-part tariff and liable to pay MMFC will not be required to
    pay either the Demand or the Customer Service Charge. | 
  
    | 8.3.7 | In addition to above, certain other charges like
    power factor penalty, incentive, prompt payment rebate, meter rent, delayed payment
    surcharge, over drawal penalty/incentive, tariff for special class of consumers, other
    miscellaneous charges, etc. are to be payable in cases and circumstances mentioned in the
    later part of this order. | 
  
    | 8.3.8 | The details of charges applicable to various
    categories of consumers classified under OERC Distribution (Condition of Supply) Code,
    1998 are discussed hereafter. | 
  
    | 8.4 | Tariff for consumers availing power supply at
    LT | 
  
    | 8.4.1 | Monthly Minimum Fixed Charge (MMFC) for
    consumers with contract demand of less than 110 KVA | 
  
    | 8.4.1.1 | The MMFC as decided in the previous tariff order
    by the Commission is payable by the consumers with contract demand less than 110 KVA
    supplied power at LT. This is intended to meet a component of the fixed cost incurred in
    the system for meeting the consumers load and also to recover the expenses on
    maintenance of meter, meter reading, preparation of bills, delivery of bills, collection
    of revenue and maintenance of customer accounts. | 
  
    | 8.4.1.2 | Commission decides
    that the existing rate of MMFC should continue as there has been no change in the Demand
    Charge payable by the licensee to the bulk supply licensee. Accordingly the rates
    applicable to all such customers shall be as given below at Table : 10 Table : 10 
      
        | Sl.No | Category of Consumers  | Monthly Minimum Fixed Charge for first KW
        or part(Rs.) | Monthly Fixed Charge for any additional KW
        or part(Rs.) |  
        | 
    LT Category |  |  |  
        | 1 | Kutir Jyoti  | 30 |   |  
        | 2 | Domestic (other than Kutir Jyoti) | 20 | 10 |  
        | 3 | Commercial | 30 | 20 |  
        | 4 | Irrigation | 20 | 10 |  
        | 5 | Street Lighting | 20 | 10 |  
        | 6 | Small Industry | 40 | 30 |  
        | 7 | Medium Industry | 80 | 50 |  
        | 8 | Public Institution | 80 | 50 |  
        | 9 | Public Water Works | 80 | 50 |  | 
  
    | 8.4.1.3 | Consumers with connected load of less than 110 KVA
    are provided with simple energy meters that only records energy consumption and not the
    maximum demand. The OERC (Condition of Supply) Regulation provides that contract demand
    for a connected load below 100 KW shall be the same as the connected load. Therefore, for
    the purpose of calculation of MMFC the connected load shall form a basis. | 
  
    | 8.5 | Energy Charge | 
  
    | 8.5.1 | Consumers with connected load less than 110 KVA | 
  
    | 8.5.1.1 | The Commission in moving towards a cost-based
    tariff structure and as a first step has started rationalising various charges linked to
    the voltage of supply which reflects the cost of supply to that particular category of
    consumers. In keeping with that objective the Commission has decided that the Energy
    Charge per unit for supply at LT will be uniform rate for all classes of consumers except
    domestic consumers consuming upto 200 units/month, irrigation and
    commercial consuming more than 100 units/month. | 
  
    | 8.5.1.2 | The relevant rates applicable to these classes of
    consumers have been discussed at appropriate paragraphs and details given in the Annex-D. | 
  
    | 8.5.1.3 | Domestic : Total number of consumers of
    WESCO as on 31.03.2000 is 3,22,807 out of which 2,62,821 or 81.42% constitute the domestic
    category including the Kutir Jyoti. The estimated sale of energy to this category during
    the FY 2000-01 is given below :-MU
 
      
        | Kutir Jyoti Consumers | 18 |  
        | Other Domestic consumers |  |  
        | (0 < 100 unit) | 318.545 |  
        | (>100 <200) | 131.795 |  
        | (>200 ) | 54.659 |  
        | Total | 523.00 |  | 
  
    | 8.5.1.4 | Domestic consumers consume 30.90% of the total
    units sold by WESCO. | 
  
    | 8.5.1.5 | Domestic consumers are given power supply at
    Low/Medium voltage. The cost of supply to this category for the FY 2000-01 is 4.21
    paise/unit. | 
  
    | 8.5.1.6 | The proposal submitted by the licensee with regard
    to the tariff rise for domestic category of consumers were examined. Some of the objectors
    complained that in the grab of Kutir Jyoti some consumers have got connected load much in
    excess of the single point supply for lighting envisaged under Kutir Jyoti programme. They
    also complained that extension of electricity being a State policy the State should
    subsidise such type of consumers. The Commission directs that wherever Kutir Jyoti
    consumers have got loads in excess of a single point supply, all such consumers should be
    metered and charged at normal domestic tariff. | 
  
    | 8.5.1.7 | The Commission is conscious of affordability
    consideration for non-Kutir Jyoti consumers with connected load of 1 KW and below who
    constitute nearly 66% of the total domestic strength. Dwelling units with five light
    points and two fan points with normal use may not exceed about 100 units per month on an
    average. Keeping this in view the Energy Charge for supply for domestic consumers availing
    low tension supply shall be as under :- Total monthly consumption :-
 
 
      
        | First 100 Units - | 140 paise per unit |  
        | Next 100 units - | 230 paise per unit |  
        | Balance units of consumption - | 320 paise per unit |  | 
  
    | 8.5.1.8 | The Kutir Jyoti consumers will also pay the
    monthly minimum fixed charge @ Rs.30/- per month. | 
  
    | 8.5.1.9 | In case of unmetered supply or defective meter,
    the energy consumption shall be assessed and billed using a load factor of 20% on the
    contract demand. For the purpose of calculation, connected load of less than 0.5 KW shall
    be treated as 0.5 KW. | 
  
    | 8.5.1.10 | Commercial : The Commission reviewed the
    existing tariff structure and decided upward revision of the rates as follows :-
 
      
        |  | Total monthly consumption |  
        | First 100 units - | 320 paise/unit |  
        | Next 200 units - | 410 paise/unit |  
        | Balance units - | 450 paise/unit |  | 
  
    | 8.5.1.11 | Load factor billing in case of unmetered supply or
    defective meter in commercial category shall be assessed and billed using the load factor
    of 30% on the contract demand which is same as connected load. For the purpose of
    calculation, connected load of less than 0.5 KW shall be treated as 0.5 KW. | 
  
    | 8.5.1.12 | Small Industry : In the existing tariff,
    consumers covered under small industry are charged @ 280 paise/unit. The revised rate for
    this category of consumers will be 320 paise/unit. In respect of these consumers with
    defective meter and unmetered supply load factor shall continue to be calculated @ 15% on
    the connected load for the purpose of assessment of consumption and billing. | 
  
    | 8.5.1.13 | Irrigation : The proposal of licensee for
    substantially raising the tariff of irrigation category of consumers was examined. The
    Commission decides that the Energy Charge for this category will be 110 paise/unit in
    place of 90 paise/unit. Consumers in the irrigation category availing power supply at HT
    will pay 100 paise/unit in place of the existing rate of 80 paise/unit. In respect of
    irrigation consumers for the months of June to October, a load factor of 8% and for the
    month of November to May, a load factor 15% shall be considered for assessment of
    consumption and billing. | 
  
    | 8.5.1.14 | The rate of tariff as determined above is
    reflected in Annex-D. | 
  
    | 8.6 | Tariff for consumers availing power supply at
    LT WITH CONTRACT DEMAND 110 KVA and above | 
  
    | 8.6.1 | Customer Service Charge | 
  
    | 8.6.1.1 | The
    Commission examined the present level of Customer Service Charge being levied for the
    consumers with connected load with 110 KVA and above and decided to continue with the
    existing level of Customer Service Charge. Table : 11 
      
        | Category | Voltage of Supply | Customer Service Charge
        (Rs./month) |  
        | Public Water Works | LT | 30 |  
        | General Purpose | LT | 30 |  
        | Large Industry  | LT | 30 |  | 
  
    | 8.6.2 | Demand and Energy Charges | 
  
    | 8.6.2.1 | The Commission, in keeping with its objective of
    rationalisation of tariff structure by progressive introduction of a cost-based tariff,
    has related the Energy Charge at different voltage levels to reflect the cost of supply.
    While determining Energy Charge, the principle of a higher rate for supply at a low
    voltage and a gradually reduced rate as the voltage level goes up has been adopted. The
    following energy charge has been adopted for all loads of 100 KVA and above.
 
      
        | Voltage of supply | Energy Charge |  
        | LT | 320paise/unit |  | 
  
    | 8.6.2.2 | 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. The Commission studied the Demand Charges for similarly placed consumers of
    other utilities. After examination of the details the Commission has decided not to change
    the present rate of Demand Charge of Rs.200/KVA/month payable by the consumers with
    contract demand of 110 KVA and above which shall be payable in addition to the energy
    charge.
 
      
        | Voltage of supply | Demand charge |  
        | LT | Rs.200/ KVA/month |  | 
  
    | 8.7 | Tariff for HT & EHT consumers  | 
  
    | 8.7.1 | Customer Service Charge for consumers with
    connected load of 110 KVA and above | 
  
    | 8.7.1.1 | The licensee
    has obligation for a consumer once connected to the power system of the licensee and
    incurs an expenditure for meeting the cost of meter reading, preparation of bills,
    delivery of bills, collection of revenue and maintenance of customer accounts. The
    licensee is bound to meet these expenses irrespective of the level of consumption of the
    consumer. Table : 12
     
      
        | Category | Voltage of Supply | Customer service
        charge (Rs./month) |  
        | Bulk Supply (Domestic) | HT | 250 |  
        | Irrigation | HT | 250 |  
        | Public Institution | HT | 250 |  
        | Commercial | HT | 250 |  
        | Medium Industry | HT | 250 |  
        | General Purpose | HT | 250 |  
        | Public Water Works | HT | 250 |  
        | Large Industry | HT | 250 |  
        | Power Intensive  | HT | 250 |  
        | Mini Steel Plant | HT | 250 |  
        | Railway Traction | HT | 250 |  
        | General Purpose | EHT | 700 |  
        | Large Industry | EHT | 700 |  
        | Railway Traction | EHT | 700 |  
        | Heavy Industry | EHT | 700 |  
        | Power Intensive Industry | EHT | 700 |  
        | Mini Steel Plant | EHT | 700 |  
        | Emergency Supply to CPPs | EHT | 700 |  | 
  
    | 8.7.2 | Demand Charge for consumer with contract demand
    of 110 KVA and above | 
  
    | 8.7.2.1 | 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. The Commission studied the Demand Charges for similarly placed consumers of
    other utilities. The Commission also took into consideration the Demand Charge being paid
    by the distribution licensee to the bulk supply licensee. After examination of the details
    the Commission has decided not to change the present rate of Demand Charge of
    Rs.200/KVA/month payable by the consumers with contract demand of 110 KVA and above. The
    class of consumers and the voltage of supply to whom this charge shall be applicable are
    listed below. 
      HT Category General PurposePublic Water Works
 Large Industry
 Power Intensive Industry
 Mini Steel Plant
 Railway Traction
 EHT Category General PurposeLarge Industry
 Railway Traction
 Heavy Industry
 Power Intensive Industry
 Mini Steel Plant
 No Demand charge has been prescribed for emergency supply to CPPs. | 
  
    | 8.7.2.2 | Consumers with contract demand 110 KVA and above
    are billed on two part tariff on the basis of 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 consumer for the
    reservation of the capacity made by the licensee for the consumers. 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 for a period
    of one year from April, 1999 to March, 2000. The Commission after examination of all such
    facts have 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 should 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 (Conditions of Supply) Code, 1998. | 
  
    | 8.7.2.3 | As per the OERC (Condition of Supply) Code, 1998
    for contract demand above 70 KVA but below 555 KVA supply shall be at 3-phase, 3-wire, 11
    kV provided that the consumers connected prior to 01.10.95 may be allowed to continue to
    receive power at LT. But there are some consumers in the category of domestic, irrigation,
    public institution, commercial and medium industry have availed power supply at HT. For
    such types of consumers the Commission has decided to allow the existing Demand Charge as
    indicated below :-
 
      
        |  | (Rs./KW) |  
        | Domestic | 10 |  
        | Irrigation | 30 |  
        | Public Institution | 50 |  
        | Commercial | 50 |  
        | Medium Industry | 50 |  | 
  
    | 8.7.2.4 | Bills should be raised for these categories of
    consumers on the basis of their contract demand/connected load calculated in KW. | 
  
    | 8.7.3 | Energy Charge for consumer with contract demand
    of 110 KVA and above | 
  
    | 8.7.3.1 | The Commission, in keeping with its aim of
    rationalisation of tariff structure by progressive introduction of a cost-based tariff,
    has related the Energy Charge at different voltage levels to reflect the cost of supply.
    While determining Energy Charge, the principle of a higher rate for supply at a low
    voltage and a gradually reduced rate as the voltage level goes up has been adopted. The
    following tariff structure has been adopted for all loads of 110 KVA and above.
 
      
        | Voltage of Supply | Energy Charge |  
        | HT | 300 paise/unit |  
        | EHT | 290 paise/unit |  | 
  
    | 8.7.3.2 | However, the Commission has made certain exception
    to the above provision in respect of domestic and irrigation consumers availing power at
    HT. | 
  
    | 8.7.3.3 | HT Supply for Domestic (Bulk) and Irrigation : With
    a view to avoid steep rise in tariff in respect of domestic (bulk supply) and irrigation
    category availing power at HT, the Energy Charge is fixed at @ 230 paise/unit and @ 100
    paise/unit respectively. The details are given in Annex-D. | 
  
    | 8.7.3.4 | Industrial Colony Consumption : The
    Commission further 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
    @ 230 paise/unit for supply at HT and EHT for the energy consumed in colony in excess of
    10% of the total consumption shall be billed at the rate of Energy Charge applicable to
    the appropriate class of industry. | 
  
    | 8.7.4 | Emergency supply to CPP  | 
  
    | 8.7.4.1 | The energy charge which is being billed @ 350 p/u
    will be raised by 30 p/u. As such emergency power supply to CPP will be billed @ 380 p/u. | 
  
    | 8.7.5 | Incentive Tariff for HT and EHT category of
    consumers | 
  
    | 8.7.5.1 | The Commission in its last tariff order dtd.
    30.12.99 in para 8.5.4.1 had discussed the issue of an incentive tariff for HT and EHT
    consumers. The Commission being conscious of the revenue requirement of the licensee
    designed a tariff with the objective of incentivising the consumers for a higher
    consumption of the licensees purchased power and dissuade them from switching over
    to captive generation. The existing incentive tariff was examined. | 
  
    | 8.7.5.2 | The Commission analysed the consumption in respect
    of all consumers having contract demand of 110 KVA and above for the period April, 99 to
    November, 2000. | 
  
    | 8.7.5.3 | The Commission observes that the consumption
    during the months of April to November, 2000 is much higher compared to the consumption
    recorded during the corresponding period of the previous financial year after incentive
    was given in form of lower Energy Charge for consumption in excess of 50% load factor. | 
  
    | 8.7.5.4 | The Commission analysed the load factor from month
    to month from the months of April, 99 to November, 2000 of all the consumers with CD 110
    KVA and above. | 
  
    | 8.7.5.5 | The Commission took cognizance of the marginal
    cost of power procurement from NTPC stations due to additional drawal by the consumers on
    account of grant of incentive in the form of reduction of Energy Charges for maintaining
    high load factor. | 
  
    | 8.7.5.6 | The Commission also takes a broader view of the
    power situation in the country and has to take into account the possible impact after
    introduction of ABT which will require payment of fixed charges by GRIDCO to the central
    generating stations requiring optimum utilisation of energy received from these
    facilities. | 
  
    | 8.7.5.7 | The tariff structure for various categories of
    Power Intensive Industries prevailing elsewhere in the country and impact of switching
    over of these industries to CPPs in yielding lesser revenue for cross-subsidising have
    been examined. | 
  
    | 8.7.5.8 | After taking all these factors into consideration
    the Commission has come to the conclusion that since the Demand Charge is same for all HT
    and EHT categories of consumers a higher consumption means a higher plant utilisation and
    results in a reduced fixed cost per unit. The Commission like the previous year decides to
    apply the incentive tariff for any consumer availing power supply at HT or EHT who becomes
    eligible for the same. | 
  
    | 8.7.5.9 | It is decided to provide incentive in shape of
    reduced Energy Charge to those who maintain a high level of consumption. The normal Energy
    Charges for EHT and HT consumers shall be @ 290 and @ 300 paise/unit respectively. | 
  
    | 8.7.6 | Method of Determination of Incentive | 
  
    | 8.7.6.1 | Incentive shall be available to those consumers
    who will not reduce their contract demand during the next three financial years. | 
  
    | 8.7.6.2 | Some objectors objected to recording of load
    factor during the FY 1999-00 in excess of 100% in the filing made by the licensee on the
    ground that it had an element of absurdity. As prescribed in OERC Condition of Supply
    Regulation, 1998 load factor of a consumer under no circumstances can exceed 100%. It is
    necessary that the method of determination of incentive should be clearly understood. | 
  
    | 8.7.6.3 | For the purpose of determination of eligibility
    for incentive tariff percentage of consumption shall be with reference to contract demand
    or the maximum demand whichever is higher (e.g. CD or MD X PF X number of hours in a
    month). | 
  
    | 8.7.6.4 | 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
    contract demand or the maximum demand whichever is higher was maintained through out the
    same period as indicated above, exceeds 50%, of the total consumption the consumer will be
    entitled to get the benefit of incentive. | 
  
    | 8.7.6.5 | Different rates of Energy Charges in excess of the
    ratio mentioned above is shown below and explained in the paragraphs here after. 
 
      
        |  | HT | EHT |  
        | Consumption upto 50% | 300 p/u | 290 p/u |  
        | >50% = < 60 % | 200 p/u | 180 p/u |  
        | >60% | 170 p/u | 150 p/u |  | 
  
    | 8.7.6.6 | Demand Charges as applicable would be chargeable
    in addition to the above. | 
  
    | 8.7.7 | EHT Consumer | 
  
    | 8.7.7.1 | Consumption in a month calculated on the basis of
    the contract demand or maximum demand whichever is higher upto 50% shall be payable @ 290
    paise/unit for consumers availing power at EHT. | 
  
    | 8.7.7.2 | In addition to the above all consumption in excess
    of 50% but upto and including 60% shall be payable @ 180 paise/unit for consumers availing
    power at EHT. | 
  
    | 8.7.7.3 | When the consumption exceeds 60% in a month all
    such excess consumption shall be payable @ 150 paise/unit for consumers availing power at
    EHT in addition to the charges indicated at para 8.7.7.2. | 
  
    | 8.7.8 | HT Consumer | 
  
    | 8.7.8.1 | Consumption upto 50% shall be payable @ 300
    paise/unit for consumers availing power at HT. | 
  
    | 8.7.8.2 | In addition to the above all consumption in excess
    of 50% but upto and including 60% shall be payable @ 200 paise/unit for consumers availing
    power at HT. | 
  
    | 8.7.8.3 | When the consumption exceeds 60% in a month all
    such excess consumption shall be payable @ 170 paise/unit for consumers availing power at
    HT in addition to the charges indicated at para 8.7.8.2. | 
  
    | 8.9 | Special Tariff for Industries with Contract
    Demand of 100 MVA and above | 
  
    | 8.9.1 | A special tariff for industries with a load of 100
    MVA and above was prescribed by OERC to encourage prospective large consumers to avail
    power from the licensee and to ensure that such large industries do not set up captive
    power plants. The licensee in para 9.2 of the application has proposed no change in the
    special tariff specified under RST order dtd.30.12.99. The licensee has also stated that
    this tariff has no impact on the revenue compilation for the year 2000-01 as no
    consumption is envisaged under this cateogory. | 
  
    | 8.9.2 | The Commission in the last tariff order had
    approved a rate of 200 paise/unit for consumption by industries with a contract demand of
    100 MVA and above and maintaining a guaranteed monthly load factor of 80%. These consumers
    will not pay a monthly Demand Charge and shall pay only a consolidated Energy Charge. They
    will have to restrict their maximum demand within the contracted capacity. In case the
    maximum demand exceeds the contracted capacity, Demand Charge as applicable to the
    relevant consumer category will be payable only on the maximum demand in excess of the
    contract demand. The Commission approves the continuance of this tariff. | 
  
    | 8.9.3 | The rate of tariff as determined above is
    reflected in Annex-D. | 
  
    | 8.10 | Other Charges | 
  
    | 8.10.1 | The Commission also authorises levy of other
    charges as given below :- | 
  
    | 8.10.1.1 | Penalty for overdrawal of power above the
    contract demand : As per the existing tariff provisions there is no penalty for
    overdrawal out side the peak hours upto 120% of the contract demand. This issue was raked
    up during the course of the public hearing. Some of the objectors pointed out that this
    provision is being circumvented by consumers who are reducing their contract demand to
    avail this benefit of overdrawal upto 120% during off peak hours. In the absence of
    frequency related metering the pious objective of the Commission in helping the flattening
    of load curve and containing the frequency is not being achieved. The Commission is of the
    opinion that a beginning has been made and this has to be enforced such that the system
    gets the benefit due to flattening of the load curve as well as control of frequency which
    is necessary in a surplus generation situation. Frequency related metering is not
    essential for measurement of overdrawal and this facility is available only to those
    industries who are provided with time of day (TOD) metering. The railway traction
    consumers have consistently demanded among other things for extension of this benefit
    during off peak hours as well as other hours to them. The Commission after taking all
    these factors into consideration has decided that this facility which is now available for
    HT and EHT industries should extend to all consumers availing power supply at HT and EHT.
    The existing rate of penalty however will continue for overdrawal during peak hours. When
    the maximum demand exceeds the contract demand during peak hours, such excess demand is
    liable for a penalty and payable at the prescribed rate of Demand Charge. For this purpose
    the peak hours is defined as 700 hrs to 1000 hrs and 1800 hrs to 2200 hrs. | 
  
    | 8.10.1.2 | Metering on LT side of Consumers Transformer
    : Transformer loss computed as given below to be added to the consumption as per
    meter reading. 
      Energy loss = 730 X KVA rating of the transformer/100.Loss in demand = 1% of the rating of the transformer (for two part tariff)
 | 
  
    | 8.10.1.3 | Incentive for prompt payment : The licensee
    in his application has estimated that the rebate on account of incentive for prompt
    payment will be of the order of Rs.2.58 crores during the financial year 2000-01. It has
    also suggested continuance of the existing rate of incentive for timely payment. The
    Commission examined the existing method of incentive and its financial implication. 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 arrears and electricity duty) is made by the due date indicated on the
      bill or within a period of 7 (seven) days from the date of receiving the bill in respect
      of the following categories of consumers.LT : Domestic, Commercial, Irrigation and Small Industry
 HT : Bulk supply domestic, commercial and irrigation
 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 arrears and
      electricity duty), if payment is made within 48 hours of the presentation of the bill. | 
  
    | 8.10.1.4 | Delayed Payment Surcharge : 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 at 2% per month on the amount remaining unpaid (excluding arrears on account of DPS)
    in respect of following categories of consumers. 
      
        i) Large industriesii) Medium industries
 iii) Public Water Works
 iv) Railway Traction
 v) Street Lighting
 vi) Power intensive industries
 vii) Heavy industries
 viii) General Purpose Supply
 ix) Public Institutions
 x) Mini Steel Plants
 xi) Emergency supply to CPP
 | 
  
    | 8.10.1.5 | Incentive for improvement in power factor :
    The Commission examined the desirability of continuing with the present method of
    incentives allowable to the consumers for improvement in power factors. WESCO estimates
    that the rebate alone on this account to HT/EHT consumers will be the order of 11.12
    crores during the financial year 2000-2001. WESCO further states that benefits of power
    factor improvement by the HT/EHT consumers has gone to GRIDCO and not to WESCO. | 
  
    | 8.10.1.6 | The Commission reviewed the present method of
    incentive plan and after examining the financial liabilities directs that incentive for
    maintenance of high power factor shall be given as a percentage of the monthly Demand
    Charge and Energy Charge and shall be applicable to the HT/EHT categories of consumers who
    are liable to pay power factor penalty. The rate of this incentive will be 0.5% for every
    1% rise above 97% upto and including 100% on the monthly Demand Charge and Energy Charge. | 
  
    | 8.10.1.7 | Power Factor Penalty : The Commission also
    orders for continuance of the power factor penalty as a percentage of monthly Demand
    Charge and Energy Charge as given below to the following categories of consumers : 
      
        i) Large Industriesii) Public Water Works (110 KVA and above)
 iii) Railway Traction
 iv) Power Intensive Industries
 v) Heavy Industries
 vi) General Purpose Supply
 vii) Public Institutions (110 KVA and above)
 viii) Mini Steel Plants
 ix) Emergency supply to CPP
 Rate of Power Factor Penalty :-i) 0.5 for every 1% fall from 90% upto and including 60% plus
 ii) 1% for every 1% fall below 60% upto and including 30% plus
 iii) 2% for every 1% fall below 30%
 | 
  
    | 8.10.1.8 | Adoption of load factor for consumers with
    defective meter and without meter : The Commission in its last tariff order
    dtd.30.12.99 had directed continuance of the existing method of load factor billing
    subject to review from time to time. The progress with regard to the
    repair/replacement/installation of new meters by the licensee in the premises of the
    consumers is being reviewed by the Commission at the end of every quarter (OERC Form
    P-13). The licensee has stated that arrangements have been made to procure 30.000
    single-phase meter and proposes to install 70,000 meters during FY 2000-01 as reported in
    OERC Form No.P-14. The licensee estimates loss reduction of 4.03% on account of detection
    of unauthorised abstraction of electricity and replacement of meters. The licensee has
    requested for continuance of the present load factor percentage to serve as a
    dis-incentive for the consumers and help adoption of metering by consumers. | 
  
    | 8.10.1.9 | The Commission examined the facts and figures
    submitted by the licensee and had the view expressed by the objectors, some of whom wanted
    reduction in the present level of load factor being applied for defective and unmetered
    consumers. It was also brought out by some of the objection that there has been an actual
    enhancement in the number of unmetered consumers and reduction and marginal reduction of
    consumers with defective meters. The Commissions serious area of concern is
    metering. The licensee should take all out efforts for maximisation of installation of
    meters, repair and replacement of meters, and the method of load factor billing cannot
    continue in perpetuity. The licensee must submit a plan of action within a period of 3
    months about 100% metering of all consumers to be completed within a definite time frame.
    The Commission will continue to review the status of metering and measures taken for
    eradication of unauthorised tapping from the distribution mains. The licensee shall submit
    the information at the end of each quarter for information and review of the Commission.
    The Commission however, orders for continuance of the existing method of load factor
    billing mainly because of the ground situation that control over large scale of pilferage
    of electricity shall take some more time. | 
  
    | 8.10.1.10 | Customer Charge : As indicated in paragraph
    8.7.1 above and also Annex-D there shall be no change in the existing rate of customer
    charge. | 
  
    | 8.10.1.11 | Re-connection Charge : The existing rates
    of reconnection charge as below shall continue :-
 
      
        | Single Phase Domestic Consumer | Rs.30/- |  
        | Single Phase other consumer | Rs.50/- |  
        | 3 Phase line | Rs.100/- |  
        | HT & EHT line | Rs.500/- |  | 
  
    | 8.10.1.12 | Rounding off a consumer billed amount to
    nearest rupee : The Commission directs for rounding off of the electricity bills to
    the nearest rupees and at the same time directs that the money actually collected should
    be receipted and accounted for. | 
  
    | 8.10.1.13 | Temporary Connection Charges : The tariff
    for the period of temporary connection shall be at the rate applicable to the relevant
    consumer category. | 
  
    | 8.10.1.14 | New Connection Charges for LT : The
    Commission in its last tariff order had directed that prospective small consumers
    requiring new connections upto and including 3 KW load should pay a flat charge of
    Rs.500/-. This was intended to do away with the then practice of preparation of estimate
    and payment of charge based on the estimated amount shall continue without any change for
    connections above 3 KW load. It was also directed for preparation of estimate for
    connection above 3 KW connected load. Complaints were raised during the course of the
    hearing about non-observance of this direction of the Commission. The licensee should
    submit a statement of new connections given during the first six months of the current
    financial year and intimate the rate that has been charged in each of the consumer cases. | 
  
    | 8.10.1.15 | Fuel Surcharge Adjustment Formula : The
    Commission has already prescribed a fuel surcharge adjustment formula for the distribution
    licensee which shall continue to be valid. | 
  
    | 8.10.1.16 | Meter Rent : Monthly meter rent as per the
    existing rate shall be charged from the consumers to whom meter has been supplied by the
    licensee. The scale of meter rent including associated equipment applicable to various
    classes of consumers is given below :-
 
      
        | Meter Rent  | in Rupees |  
        | 1.Single phase electro-magnetic Kwh meter | 15/- |  
        | 2. Three phase electro-magnetic Kwh meter | 30/- |  
        | 3. Three phase electro-magnetic trivector meter | 800/- |  
        | 4. Trivector meter for Railway Traction | 800/- |  
        | 5. Single phase Static Kwh meter | 35/- |  
        | 6. Three Phase Static Kwh meter | 100/- |  
        | 7. Three phase Static Trivector meter | 800/- |  
        | 8. Three phase Static Bivector meter | 800/- |  | 
  
    | 9.0 | In the light of our findings, the
       Commission
    decides as follows :(a) The Commission does not approve the licensees calculation of revenue and
    proposal for tariff.
 (b) It orders that tariff as determined in this order be implemented by the licensee
    effective from 1st February, 2001 until futher order in this Regard. The tariff schedule
    various classes of consumers at Annex-D is approved.
 (c)The Commission does not approve of the expected revenue from charge at the existing
    tariff from 2000-01 as proposed by the licensee and has approved a modified figure after
    due examination of the facts, figures and submissions made by the licensee.
 (d)The Commission accepts the request of WESCO that it will be permitted to carry forward
    the gap between the expected revenue and the revenue requirement for 2000-01 as well as
    for 99-00 within the benchmark approved by the Commission for adjustment during the future
    years, after vetting of the figures by the Commission.
 (e)The Commission does not accede to the prayer of the licensee for accepting the loss for
    the year 1999-2000 as it occurred due to inability to remain within performance parameters
    set by the Commission.
 The application of M/s. WESCO is disposed of accordingly.  
       
        
          | H. S. SahuMember
 | 
    D. K. RoyChairman
 |  | 
  
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